Earnings Results Presentation - 2Q13

7/27/2019 Earnings Results Presentation - 2Q13

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2ndQuarter EarningsResults

DASA grows gross revenues in 12%and increases net income by 52% in2Q13

Romeu Crtes DominguesChairman

Dickson Esteves TangerinoCEO

Cynthia May HobbsCFO

Octvio FernandesVP of Operations

Emerson Leandro GasparettoDirector of Imaging

Paulo BokelInvestor Relations Officer

[email protected]: (011) 4197-5410Fax: (011) 4197-5516

www.dasa3.com.br

TELECONFERENCES

PortugueseDate: 08/13/13 | Hour: 10h00 (Braslia)

Tel.: 11 2188-0155 | Password: DASA

EnglishDate: 08/13/13 | Hour: 12h00 (Braslia)

Phone: 1(412)317-6776 | Password:

DASA

DASA ONBovespa: DASA3

Most recent quotation:08/12/13: R$ 12.1

Average daily trade volume2Q13:

R$ 27.9 millionMarket value:R$ 3.8 billion

US$ 1.7 billion

Free Float: 97.2%


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DISCLAIMER

This document contains forward looking

statements that can be identified by words likehope, plan, expect, believe, seek,estimate and similar words. The information inthis presentation regarding forward lookingstatements of the Company, including businessprospects, and operating, financial, and growth

projections are only predictions based onmanagement expectations regarding futureperformance. These estimates are highlydependant on the performance of the Brazilianeconomy, industry and international marketcondiitions. Therefore, they are subject to

change.


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2Q13 HIGHLIGHTS AND RECENT FACTSGrowth

GROSS REVENUE reached R$ 698.5 million in 2Q13, a 12% growth compared to 2Q12

STRONG growth in HOSPITALS, LAB TO LAB AND IMAGE

4PSCS REMODELING delivered in 2Q13, and 10 in progress 2 NEW MRIs and 1 NEW CT in the quarter

Quality

53 PAPERS APPROVED in the 2013 AACC (American Association for Clinical Chemistry)

One of the papers was AWARDED at the conference by the NACB (National Academy of

Clinical Biochemistry) Over 50 MEDICAL EVENTS held this year

Beginning of the operation of the SECOND PRODUCTION CONVEYOR BELT in our CentralLab n Rio de Janeiro

AWARDED THE BEST COMPANY in the healthcare industry by Revista Valor 1000 (Value 1000Magazine)

Return for the shareholder EBITDA of R$ 110.8 million in 2Q13, 7.6% more than 2Q12

OPERATING CASH FLOW of R$ 87.1 million in 2Q13, 32.3% more than 2Q12

NET INCOME of R$ 35.2 million in 2Q13, 51.9% more than 2Q12


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Clinical Analysis volume is higher due to NEW PAYERS

NEW SCHEDULES and an IMPROVED CALL CENTER impacted the growth ofImage

A MIX WITH HIGHER COMPLEXITY (IMAGE) raised the average revenue perrequisition

GROSS REVENUES (R$ MILLION) AVERAGE REVENUE PER REQUISITIONAND VOLUME (MILLIONS)

PATIENT SERVICE CENTERS

261.4

294.8

196.1

212.1

2Q12 2Q13Clinical Analysis RID

57.1%

42.9%

457.5

506.9

41.8%

58.2%

8.2%

10.8%

12.8%

3.6 3.6 3.3 3.5 3.8

126.5130.5

134.5 134.0 133.7

2Q12 3Q12 4Q12 1Q13 2Q13

Requisitions Average Requisition Price


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HOSPITALS

GROWTHof 16.1% despite operating with selectivity Impact ofNEW CONTRACTS which began operations in 1Q13

Implementation of NEW SERVICES and focus on INCREASINGPROFITABILITY

GROSS REVENUES (R$ MILLION) AVERAGE REVENUE PER REQUISITIONAND VOLUME (MILLIONS)

48.554.2

12.3

16.4

2Q12 2Q13

Clinical Analysis RID

79.7%

20.3%

60.8

70.6

23.2%

76.8%11.8%

16.1%

32.8%

1.2 1.1 1.0 1.1 1.1

49.8 52.256.5 56.3

64.7

2Q12 3Q12 4Q12 1Q13 2Q13

Requisitions Average Requisition Price


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22.0% increase in the number ofREQUISITIONS and 21.5% in REVENUES

Focus on GREATER CAPILLARITY and IMPROVING THE MIX

Performance

LAB-TO-LABGROSS REVENUES (R$ MILLION)

60.6

73.7

2Q12 2Q13

21.5%

4,8535,052

12,497 14,589

2Q12 2Q13

# of Laboratories Average Revenue/Laboratory (in R$)

199


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Growth due to NEW CONTRACTS

PUBLIC HOSPITALS AND CLINICS

GROSS REVENUES (R$ MILLION)

44.647.3

2Q12 2Q13

6.1%

576 592

77.479.9

2Q12 2Q13

# collecting site Revenue per colleting sites

16


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COSTS

PERSONNEL: greater PSCs productivity

MATERIALS: growth in the number of tests and improvement inproductivity

SERVICES AND UTILITIES: medical compensation, data link, occupancycosts and commission to lab-to-lab sales representatives

2Q13 1Q13 2Q12 2Q13 1Q13 2Q12 2Q13 x

1Q13 %

2Q13 x

2Q12 %Personnel 118.6 111.2 116.6 18.8% 19.1% 20.4% 6.7% 1.8%

Materials 110.9 100.5 102.0 17.6% 17.3% 17.8% 10.3% 8.8%

Services and Utilities 174.0 156.9 140.1 27.6% 27.0% 24.5% 10.9% 24.1%

General 6.4 6.2 5.5 1.0% 1.1% 1.0% 3.2% 16.4%

Cost of Services Cash 409.9 374.8 364.1 64.9% 64.4% 63.7% 9.4% 12.6%

Depreciation and amortization 24.3 27.8 21.5 3.8% 4.8% 3.8% -12.7% 12.9%Cost of Services 434.2 402.6 385.6 68.8% 69.2% 67.5% 7.8% 12.6%

In R$ Million Variation %% of Net Revenues


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SG&A

GENERAL AND ADMINISTRATIVE: call center internalization and

more control of hiring

2Q13 1Q13 2Q12 2Q13 1Q13 2Q12 2Q13 x

1Q13 %

2Q13 x

2Q12 %

General and Administrative 105.2 101.8 98.5 16.7% 17.5% 17.2% 3.3% 6.8%

Profit Sharing Program 6.9 7.6 6.4 1.1% 1.3% 1.1% -9.5% 7.9%

Other Operating Revenues/ Expenses (1.4) (1.7) (0.4) -0.2% -0.3% -0.1% -16.1% 279.3%

Cash Operating Expenses 110.7 107.7 104.5 17.5% 18.5% 18.3% 2.7% 5.9%

Depreciation and Amortization 13.5 14.0 14.1 2.1% 2.4% 2.5% -3.7% -4.4%

Operating Expenses 124.1 121.7 118.6 19.7% 20.9% 20.7% 2.0% 4.7%

In R$ Million % of Net Revenues Variation %


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ACCOUNTING EBITDA (R$ MILLION)

EBITDA

Margin

103.0 110.8

18.0% 17.6%

2Q12 2Q13

7.6%


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OPTIMIZED FISCAL BENEFIT expected after the incorporation of MD1

* Withholding tax (current): Originally from financial income and withholding of gross revenue

IR/CSLL

36.0%

20.2%

34.0%

2.0%

4.2%

-19.9%

Income Tax Rate permanentsadjustements in

tax books

Income Taxes(Financial

Statements)

TaxLoss/GoodwillCompensation

Other Withholding tax(current)/

Income taxes

cash*

2Q13


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(1) Index coverage = BDP balance/ expired > 120 days

RECEIVABLES

Unbilled services (R$ million) Average collection period (days)

Provision rule

91 to 120 days 25%

121 to 180 days 50%

181 to 360 days 75%More than 361 days 100%

127.9

119.0

80.1 82.793.2 96.9

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

R$ million 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13Accounts receivable 399.7 385.5 409.7 398.0 423.7 415.9 432.4 376.8 448.2 467.2

Past due 0-90 59.7 71.1 85.0 74.7 74.3 78.0 87.2 94.8 79.5 80.2

Past due 91 - 120 8.2 12.2 11.3 10.1 10.7 10.8 8.3 16.1 14.1 9.6

Past due (more 84.9 83.3 92.4 111.2 111.2 113.8 117.6 119.9 118.8 109.4Provisions (84.2) (71.7) (75.1) (103.9) (102.7) (106.1) (105.5) (109.2) (107.7) (95.0)

Total Rec. 466.2 481.7 523.3 490.1 517.1 512.4 540.0 498.5 552.9 571.3

Coverage Index 99.1% 86.1% 81.3% 93.4% 92.4% 93.2% 89.7% 91.1% 90.7% 86.9%

84.5

81.6

84.4

83.8

85.6

81.7

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13


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236.5

(336.5)(752,5)

(852.5)

Cash and Cash Equivalents

Debt Short TermDebt Long Term

Net Debt**

Operating cash flow is POSITIVE

Stable NET DEBT compared to 1Q13

BALANCE SHEET MANAGEMENT

(*) Not consider R$ 39.4 million of the cash payment of So Paulo tax debts.Neither consider the Financial Result gain of R$ 9.3 million(**) Methodology adopted by fiduciary agent

Debt Composition(R$ million)

Management Cash Flow (R$ Million) 2Q13

Accounting EBITDA 110.8

Operacional working capital (16.3)

Other working capital accounts* 28.0

Financial expenses* (27.4)

Income tax (8.0)

Operational cash flow 87.1

Capex (29.1)Free Cash Flow 58.0


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ROIC (*)

(*) Considering current EBITDANOPAT LTM/mean(working capital + intangible assets + fixed assets value for Exchange of shares of DASA and MD1)34% effective rate of Income Tax

ROIC has been impacted by INVESTMENTS MATURATION PERIOD

17.4% 14.2%16.3%

11.7%

9.1%

7.6% 7.8%

2011 1Q12LTM

2T12LTM

3T12LTM

2012 1T13LTM

2T13LTM


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Capex Breakdown 2Q13

2Q13:1 NEW UNIT, 2 MRI, 1 CT

R$ 29.1 MM in 2Q13

CAPEX

Information

Technology

R$ 8.3 MM

Opening and

Expansion of

PSCs

R$ 9.8 MM

Equipment

R$ 10.9 MM

33.8%

28.7%

37.5%

113.4

192.5

234.0

73.0

41.3 49.329.1

2010 2011 2012 1Q12 1Q13 2Q12 2Q13


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Conference Call 2Q13

Q&A

Documents

Earnings Results Presentation - 2Q13