Download - Conference Call Presentation 4Q09
Tempo Assist Tempo Assist
4Q09 Earnings Release
• The year of 2009 was important for the Company with investments in systems
(proprietary dental platform), noticeable development in processes (specially to
grant integration of the acquired companies in order to optimize synergies), strategic
planning and team reinforcement (new management);
• SAP Go live on January, 2010. Health and Assistance segments are implemented in
Operating Highlights
• SAP Go live on January, 2010. Health and Assistance segments are implemented in
SAP. Dental segment will be implemented during the first half of the year;
• New brand in 2010: Tempo Participações is now Tempo Assist;
• ANS approval of the Unibanco Saúde acquisition. The agreement was made in
2009. With the approval, the insurance company results will be incorporated into
Tempo’s from the second quarter 2010 onwards.
Market Segments and its
Perspectives
Dental Plans Health Management
Ranking: #11.58 million of livesMarket: B2B; insurances and HMO’s public entities and
Ranking: #3854k livesMarket: B2B and B2B2C;Clients: corporate,
Health Insurance
Ranking: n/a70klivesMarket: B2B;small to medium size corporate clients
Assistances 24hRanking: #115 millions itemsMercado: B2B and B2B2C; insurances
Specialized Assistances
public entities and corporate clients
Clients: corporate, affinity channels
AffinityChannels Stop Loss SME
corporate clients
Promising Perspectives
B2B2C; insurances
End users
Tempo Consolidated
4
� Health Segment: 15% growth in beneficiaries, reaching a total of 1.6 million lives, and strong expansion in homecare division;
� Dental Segment: growth driven by the annualization of past acquisitions and establishment of new partnerships to distribute dental insurance;
� Assistances Segment: added Itaú-Unibanco’s personal & residence assistance account, a large number of covered items;
SG&A (BU’s) – R$ Million
166,2
-6,1
-16,5
4,8
-0,7
29,4177,0
+2%
31,9
non
recurring39,5
5
2008 BUs SG&A Personnel G&A Sales Taxes and fees Others 2009 BUs SG&A
+2%
134,3 recurring
SG&A
137,5
SG&A (Holding)
10,6
11,0
-0,01
0,2
-3,928,9
non
recurring2,1
6
11,1
2008 Holding SG&A Personnel G&A Marketing Taxes and fees Other 2009 Holding SG&A
recurring
SG&A
+141% 26,8
Recurring Operating Result
41%43%38%34%
2008 2009
7
41%
16%
43%
29%
34%
AssistanceDentalHealth
R$Million
Net Revenues
Cost of Rendered Services
Gross Profit
Gross Margin (%)
Selling, General and Administrative Expenses
Operating Results
(+)Non recurring Adjusts
R$Million
Net Revenues
Cost of Rendered Services
Gross Profit
Gross Margin (%)
Selling, General and Administrative Expenses
Operating Results
(+)Non recurring Adjusts
2008 2009 Var.%
425.3 448.5 5.5%
(332.7) (353.2) -6.2%
92.6 95.3 2.9%
21.8% 21.3% - 0.5 p.p.
(77.8) (86.4) -11.0%
14.8 8.9 -39.8%
(16.9) (25.1) -48.3%
2008 2009 Var.%
425.3 448.5 5.5%
(332.7) (353.2) -6.2%
92.6 95.3 2.9%
21.8% 21.3% - 0.5 p.p.
(77.8) (86.4) -11.0%
14.8 8.9 -39.8%
(16.9) (25.1) -48.3%
Press Release 4T09 8
�Beneficiaries: 14.6% growth when comparing with same period in 2008.
�General and Administrative Expenses: impacted due to the allowance for doubtful accounts of R$ 22.7millions;
� Recurring Operating Result: 7.2% growth when comparing with the previous year.
(+)Non recurring Adjusts
Recurring Operating Results
Operating Margin (%)
(+)Non recurring Adjusts
Recurring Operating Results
Operating Margin (%)
(16.9) (25.1) -48.3%
31.7 34.0 7.2%
7.5% 7.6% 0.1 p.p.
(16.9) (25.1) -48.3%
31.7 34.0 7.2%
7.5% 7.6% 0.1 p.p.
Beneficiaries (million) Net Revenues (R$ million)
4Q08 1Q09 2Q09 3Q09 4Q09
1.38 1.39 1.38 1.341.58
14.6%
2008 2009
448.5425.3
5.5%
9
Cost of Services Rendered (R$ million) andLoss Ratio (%)
Recurring Operating Results (R$ million) and
Margin (%)
4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009
2008 2009
6.2%
332.7353.2
2008 2009
7.2%
7.5%7.6%
31.7 34.0
R$Million
Net Revenues
Cost of Rendered Services
Loss Ratio
Gross Profit
Gross Margin (%)
Selling, General and Administrative Expenses
Operating Results
R$Million
Net Revenues
Cost of Rendered Services
Loss Ratio
Gross Profit
Gross Margin (%)
Selling, General and Administrative Expenses
Operating Results
2008 2009 Var.%
56.1 99.7 77.8%
(27.4) (45.1) -64.5%
47% 44% -3.4 p.p.
28.6 54.6 90.7%
51.1% 54.8% 3.7 p.p.
(20.9) (30.9) -47.5%
7.7 23.7 208.0%
2008 2009 Var.%
56.1 99.7 77.8%
(27.4) (45.1) -64.5%
47% 44% -3.4 p.p.
28.6 54.6 90.7%
51.1% 54.8% 3.7 p.p.
(20.9) (30.9) -47.5%
7.7 23.7 208.0%
�Beneficiaries: 2% growth in the total numbers of lives;
�Loss ratio: Loss ratio in 2009 decreased 4.7 p.p. when compared to 2008, ending 2009 with 44%;
� Recurring operating result:112.9% growth when comparing to the previous year, reaching 26 millions.
Operating Results
(+)Non recurring Adjusts
Recurring Operating Results
Operating Margin (%)
Operating Results
(+)Non recurring Adjusts
Recurring Operating Results
Operating Margin (%)
7.7 23.7 208.0%
(4.5) (2.3) 0.0%
12.2 26.0 112.9%
21.8% 26.1% 4.3 p.p.
7.7 23.7 208.0%
(4.5) (2.3) 0.0%
12.2 26.0 112.9%
21.8% 26.1% 4.3 p.p.
Beneficiaries (‘000) Net Revenues (R$ million)
833 849 879851 854
2.6% 77.8%
56.1
99.7
11
Cost of Services Rendered (R$ million) andLoss Ratio (%)
Recurring Operating Results (R$ million) and
Margin (%)
4Q08 1Q09 2Q09 3Q09 4Q092008 2009
2008 2009
64.5%
47%44%
27.445.1
2008 2009
64.5%
47%44%
27.445.1
R$Million
Net Revenues
Cost of Rendered Services
Loss Ratio
Gross Profit
Gross Margin (%)
Selling, General and Administrative Expenses
Operating Results
(+)Non recurring Adjusts
R$Million
Net Revenues
Cost of Rendered Services
Loss Ratio
Gross Profit
Gross Margin (%)
Selling, General and Administrative Expenses
Operating Results
(+)Non recurring Adjusts
2008 2009 Var.%
238.2 190.8 -19.9%
(148.2) (112.8) 23.8%
55.9% 53.3% - 2.6 p.p.
90.0 78.0 -13.4%
38% 41% 3.1 p.p.
(67.4) (59.7) 11.4%
22.6 18.2 -19.3%
(10.5) (12.2) -16.2%
2008 2009 Var.%
238.2 190.8 -19.9%
(148.2) (112.8) 23.8%
55.9% 53.3% - 2.6 p.p.
90.0 78.0 -13.4%
38% 41% 3.1 p.p.
(67.4) (59.7) 11.4%
22.6 18.2 -19.3%
(10.5) (12.2) -16.2%
�Insured Items: 15 million items, representing a 9.6% reduction year over year due to a loss of an importantclient at the end of 2008.
�Loss Ratio: The loss ratio presented a 3.2pp reduction year on year, reaching 53.3% in 2009;
�General and Administrative Expenses: 11.4% reduction when comparing to 2008. impacted due to theallowance for doubtful accounts of R$ 3.5 millions;
� Recurring Operating Result: the revenues reduction impacted the BUs operating result, which posted a8% reduction, however there was an increase in operating margin of 2.1pp.
Recurring Operating Results
Operating Margin (%)
Recurring Operating Results
Operating Margin (%)
33.1 30.4 -8.0%
13.9% 15.9% 2.1 p.p.
33.1 30.4 -8.0%
13.9% 15.9% 2.1 p.p.
Insured Items (in millions) Net Revenues (R$ million)
million 4Q08 1Q09 2Q09 3Q09 4Q09
Itens 16.55 12.17 12.99 13.78 15.00
13%
21%65%
2008 2009
238.2190.8
19.9%
13
Cost of Services Rendered (R$ million) andLoss Ratio (%)
Recurring Operating Results (R$ million) and
Margin (%)
2008 2009
2008 2009
148.2 112.8
55.9%
53.3%
-23.8
2008 2009
33.1 30.4
13.9%15.9%
-8.0%
Capex
Capex (R$ million) 1Q09 2Q09 3Q09 4Q09 2009
Software 1.6 2.3 1.1 2.6 7.7
IT Equipments 0.2 0.2 0.6 1.2 2.2
Buildings - 0.0 0.2 0.5 0.7
Furniture & Equipment - - 0.0 0.1 0.1
Other - 0.0 0.5 0 0.5
Total 1.8 2.6 2.4 4.4 11.2
Capex (R$ million) 1Q09 2Q09 3Q09 4Q09 2009
Software 1.6 2.3 1.1 2.6 7.7
IT Equipments 0.2 0.2 0.6 1.2 2.2
Buildings - 0.0 0.2 0.5 0.7
Furniture & Equipment - - 0.0 0.1 0.1
Other - 0.0 0.5 0 0.5
Total 1.8 2.6 2.4 4.4 11.2
� In 2009, the company invested a total amount of R$ 11.2 million, mainly directed tothe development of IT solutions (software), specially in the implementation of SAP andthe development of the operational platform of the dental plans segment (OdontoUtilis).
New Management
Since April, 2009
BUs
Corporate Structure
Since IPO Since December, 2009 Since IPO Since June, 2009
Since February, 2010Since July, 2009Since July, 2009Since November, 2009