Texto. TEMPO ASSIST Management Presentation April 2011

Transcription

1 Texto TEMPO ASSIST Management Presentation April

2 Agenda 1. Introduction and Company Overview 2. Health Business Unit 3. Dental Business Unit 4. Assistance Business Unit 5. Consolidated Financials 1

3 Introduction and Company Overview Company Overview Marcos Couto CEO Business Units Luiz Figueiredo Health Services Marcello Avena Brokers Channel (health and dental) Fernando Ranoya Affinity Channel (dental and assistance) Gibran Marona Assistance Glauco Michelotti Homecare Corporate José Salazar CFO, IR Officer, Legal Ricardo Manhães COO Ronald Poon Underwriting 2

4 Introduction and Company Overview Company Overview Leading player in the Healthcare, Dental and Assistance segments with each business segment benefiting from a scalable operating platform Health Services Health Health Insurance Dental Assistance & Self funded, TPA, PPO and Homecare services Leading provider of administrative and back-office services for self-insured employers, governmental entities, insurance companies and health management organizations (HMOs) Health Insurance High-end healthcare plans to SME distributed mainly through brokers Number of lives: 70,000+ Leading provider of dental benefits in Brazil, providing plans to individuals through their employers and associations and benefiting from cross-selling opportunities Number of lives: 770,000+ Leading provider of assistance services for corporate clients, with products in the automobile, home, personal and travel segments Number of items: 17.2mm Number of lives: 1.6mm No risk #1 in Brazil Underwriting risk, with high quality portfolio #9 in Brazil Low risk #4 in Brazil Low risk #2 in Brazil Total 2010 Net Revenue (R$ mm) ¹ 2010 EBITDA from ops (R$ mm) EBITDA Margin from ops Margin (%) EBITDA from ops Breakdown (%) Source: Company Notes: 1 Does not exclude R$ 7.5 million intercompany revenues. 2 Refers to EBITDA excluding holding expenses. Excludes non-recurring expenses as explained in company s quarterly releases. 3

5 Introduction and Company Overview Corporate History Acquisition of USS Assistance Acquisition of Associl s client base Dental Acquisition of Medlar Homecare Initial Public Offering of TEMP3 in Novo Mercado Acquisition of Prevdonto Dental Acquisition of MultiCare Healthcare Joint Venture Caixa Saúde Healthcare and Dental Acquisition of Gama Saúde Health Services Acquisition of Cloe Dental Acquisition of CRC Acquisition of Gama Odonto 1 Acquisition of Oralgold Acquisition of Odonto Empresa Acquisition of OralTech Acquisition of Fleming Planos Odontologicos Acquisition of Staff Builders Acquisition of Unibanco Health Services Dental Dental Dental Dental Dental Homecare Health Insurance Acquisition Rationale Note: 1 Subsidiary of Gama Saúde by the time of its acquisition Consolidation Expansion into new markets 4

6 Agenda 1. Introduction and Company Overview 2. Health Business Unit 3. Dental Business Unit 4. Assistance Business Unit 5. Consolidated Financials 5

7 Agenda 1. Introduction and Company Overview 2. Health Business Unit i. Market and Competitive Landscape ii. iii. iv. Business Unit Overview New Initiatives Financial Information 3. Dental Business Unit 4. Assistance Business Unit 5. Consolidated Financials 6

8 Health Market and Competitive Landscape Overview of Private and Public Health Systems in Brazil 136MM Public System Only 15MM Medical Cooperatives 1MM Non Profit Organizations 191MM Public Health System 6MM Insurance Companies 17MM HMOs 44MM Private Health Plans 5MM Self Insured 11MM Gov. Funded Entities 11MM Gov. Funded Entities Source: Folder ANS Informação 2010 edition, except gov. funded entities (sector estimates) 7

9 Health Market and Competitive Landscape Drivers of Demand for Health Services in Brazil GDP Growth Per Capita Population Aging Social Mobility Health Expenditure Per Capita (U$ PPP) Population Distribution Per Age-Group Income Distribution of Urban Residents in Brazil (%) ,000 6,000 4,000 New Zealand Canada France Swiss EUA A+B C D+E (High) (Middle) (Lower) 2, Australia Italy Japan Portugal Spain South Africa Israel Brazil Uruguay Bolivia Argentina PIB per capita (U$ PPP) Czech Republic 10,000 20,000 30,000 40,000 50, A+B C D+E (High) (Middle) (Lower) Source: WB; WHO; IBGE; Wall Street Research; Banco Central do Brasil; Febraban; FGV and BTG Pactual estimates 8

10 Health Market and Competitive Landscape Private Health Services Market and Competitive Landscape Service Provided Back Office / TMR Network Rental Commercial Plans (Pos-Paid) Commercial Plans (Pre-Paid) Homecare Tempo s Legal Entities Tempo CRC Gama Saúde Tempo Saúde Tempo Saúde Medlar SME Corp/Indiv. A-B B-C-D Corp/SME A-B-C Corp/Indiv. Corp/SME/Indiv. Corp/SME/Indiv. B-C B-C-D A-B 9

11 Agenda 1. Introduction and Company Overview 2. Health Business Unit i. Market and Competitive Landscape ii. iii. iv. Business Unit Overview New Initiatives Financial Information 3. Dental Business Unit 4. Assistance Business Unit 5. Consolidated Financials 10

12 Health Business Unit Overview Overview Back-Office / TMR Network Rental Commercial Plans (Pre-Paid) Commercial Plans (Post-Paid) Homecare Legal Entity Services Processing services and account audits Contact center for service providers and beneficiaries Administration of beneficiaries' registration Administration of service provider network Access to a network of providers with national coverage Network customized to the needs of each client Potential to offer new products Corporate pre-paid health plans Plans target the premium (high income) segment of the population Primarily SME clients with growing corporate client base Commercial postpaid plans focused on corporate clients Development of post-paid reinsurance products through partnerships with international reinsurance companies In-home care Medical procedures Follow-up and monitoring of patients Lives ~1.1 million lives ~ 450 thousand lives ~ 70 thousand lives ~ 40 thousand lives ~ 400 patients currently under treatment Clients 11

13 Health Business Unit Overview Back-office / TMR and Network Rental Back-office Other (TMR, etc)¹ Network Rental Government funded entities Government funded entities Government funded entities Target Market Private self-administration Health insurance companies Private self-insured Health insurance companies Private self-insured Health Insurance Companies HMOs HMOs HMOs Services Provided Processing services and account audit Contact center for service providers and beneficiaries Administration of beneficiaries' registration Administration of service provider network High cost regulation Processing services / medical accounts' audit of supplies and medication costs Benchmarking analysis to market rates Access to more than 15,000 service providers and 50,000 provider locations Includes Customer Service processes, Regulation, Account processing, Payment to Service Providers Revenue Allocation (9M10) (does not include costs pass through) 60% 8% 32% Relative Position in Market # 1 Player Unique national coverage IT platform and scale as competitive differentiators Unique service offering Proprietary system without peers in national market # 1 Player Unique national coverage Adaptability of network administration system as competitive differentiator Note: 1 Includes approximately 40 thousand lives in self insured plans. 12

14 R$ mm Health Business Unit Overview Comercial Plans Pre-Paid Evolution of Pre-Paid Portfolio Growth growth: +19.2% 72,655 60,956 19,920 16,949 January 2010 December Lives (000) Tempo grew at a significantly higher rate than the market Market: Average Annual Growth in lives of +5% Tempo Saúde: +19.2% of growth in lives in % organic growth 50% via own broker 50% Itaú / Unibanco brokers Lives Premium (R$mm) Geographic Distribution of Pre-Paid Portfolio Portfolio Diversification Pernambuco 3% Bahia 10% Others 6% Growth potential primarily in regions outside of São Paulo Rio de Janeiro axis Minas Gerais 11% São Paulo 49% Rio de Janeiro 21% Based on number of Active Beneficiaries 13

15 Health Business Unit Overview Homecare (Medlar) Market with Regional Presence, with Local Franchises Historical Revenue (R$MM) and Loss Ratio (%) 61.7% 64.2% 62.0% 61.1% 73.9% Porto Alegre DF Salvador Campos dos Goytacazes Rio de Janeiro São Paulo S.J. dos Campos Santos Campinas Location of Medlar Franchises Main Customers Revenue Breakdown Procedures 19% Procedures: simpler cases with nonintensive care (bandages, medication dosage,among others) Homecare: most complex cases that require intensive medical and nursing Home Homecare Integration [Clarify] care 81% 14

16 Health Business Unit Overview Key Factor - Administration of Service Provider Network 35,000 1 service providers distributed in more than 200,000 provider locations all over Brazil Specialized network administration for different businesses: Network rental - Gama Saúde (18,000 service providers) Pre-paid and post-paid commercial plans - Tempo Saúde (14,000) Third party network administration (6,000 providers) Traffic of more than 1.6 million users in network managed by Tempo Active administration of network capacity Continuous update of network coverage Post-Paid Network + Network Rental + TPA Pre-Paid Network Note: 1 Excludes 3,000 providers that are in more than one network 15

17 Agenda 1. Introduction and Company Overview 2. Health Business Unit i. Market and Competitive Landscape ii. iii. iv. Business Unit Overview New Initiatives Financial Information 3. Dental Business Unit 4. Assistance Business Unit 5. Consolidated Financials 16

18 Health New Initiatives Joint Venture with Caixa Seguros Tempo / Caixa Seguros Transaction Rationale Tempo Participações R$30mm in cash R$45mm in credits Provide back office services for all health and dental plan operations of Caixa Saúde Assistance Business Unit Health Business Unit Dental Business Unit 25% JV established with R$17mm (R$7mm from Caixa Seguros and R$10mm from Tempo), with additional R$20mm to be provided by Tempo Tempo will be able to capitalise R$45mm of back office services, which protects Tempo against adverse performance of the JV JV Caixa Saúde If the business plan is successful, the credit will be used in approximately 2 years Tempo gains distribution channel with access to 940,000 businesses (including SMEs), 13,000 public entities and a total of 48 million individuals Tempo retains exclusivity in the sale of health and dental insurance to clients of Caixa Econômica Federal ( CEF ) Tempo participates in administration of the JV through position on the board of directors 17

19 Agenda 1. Introduction and Company Overview 2. Health Business Unit i. Market and Competitive Landscape ii. iii. iv. Business Unit Overview New Initiatives Financial Information 3. Dental Business Unit 4. Assistance Business Unit 5. Consolidated Financials 18

20 Health Financial Information Financial Highlights Business Unit Contribution 2010 Net Revenues (R$ million) Net Revenues EBITDA Others² % Others² 52% 48% 66% Gross Profit (R$ million) and Gross Margin (%) 22% 0,215 21% 21% 20% EBITDA 1 (R$ million) and EBITDA Margin (%) 6% 6,0% 6% 6,3% 7% Note: 1 Recurring operating EBITDA (excluding headquarters expenses) 2 Others represent the remaining Tempo business units 19

21 Agenda 1. Introduction and Company Overview 2. Health Business Unit 3. Dental Business Unit 4. Assistance Business Unit 5. Consolidated Financials 20

22 Agenda 1. Introduction and Company Overview 2. Health Business Unit 3. Dental Business Unit i. Market and Competitive Landscape ii. iii. Business Unit Overview Financial Information 4. Assistance Business Unit 5. Consolidated Financials 21

23 (Lives 000) (Annual Growth %) Dental Market and Competitive Landscape Market Evolution Sustainable growth in dental lives of 20%/year Lives Market 18,000 16,000 23% 21% 22% 25 14,000 12,000 10,000 17% 16% 19% 9,133 18% 10,772 13, ,000 6,000 4,447 5,457 6,353 7, , , Number of Lives Annual Growth Source: ANS Jun/10 22

24 Odontoprev Interodonto Amil Medial Tempo Dental Odonto System Prodent Uniconto Curitiba Metlife Inpao Dental Unidonto Campinas Unidonto Campinas Sulamérica Belo Dente Dental plan Dental Market and Competitive Landscape Key players in Brazilian Dental Market Total Dental Market 13.2mm participants, representing 6.9% of total population 4,372 Other Operators 3,307 25% 13 Largest Operators 9,907 75% 1,168 1, Fonte: ANS Dec/09 Odontoprev, Amil, Tempo and Sulamérica 2Q10 Press Releases 23

25 Agenda 1. Introduction and Company Overview 2. Health Business Unit 3. Dental Business Unit i. Market and Competitive Landscape ii. iii. iv. Business Unit Overview Current Operations Strategic Plan v. Financial Information 4. Assistance Business Unit 5. Consolidated Financials 24

26 Dental Business Unit Overview Overview Main player in affinity partnerships in Brazil Portfolio of Lives by channel as of Dec (000s) Loss Ratio Contribution: % 39.2% 364 Total 1 2 Individuals and Corporate Contracts Affinity Individuals and Corporate Contracts Affinity Average Loss Ratio Notes: 1 Individual plans sold directly to clients 2 Plans for corporate and SME 25

27 Dental Business Unit Overview Distribution Affinity Channel Current Partnerships Contract since 05/2008 Strong Expansion Profile Contract since 11/2009 Strong Expansion Profile Contract since 12/2006 Mature and Stable Customer Base Contract since 10/2007 Solid Expansion Profile Contract since 03/2007 Strong Expansion Profile Contract since 05/2010 Expansion Profile 26

28 Dental Business Unit Overview Network of providers National coverage PROVIDERS BY STATE ,000 beneficiaries all over the country 8,000 accredited dentists National coverage More than 1,120 cities covered Fully outsourced and nonexclusive network More than 23,000 specialties/procedures offered Active administration of network capacity 27

29 Agenda 1. Introduction and Company Overview 2. Health Business Unit 3. Dental Business Unit i. Market and Competitive Landscape ii. iii. Business Unit Overview Financial Information 4. Assistance Business Unit 5. Consolidated Financials 28

30 Dental Financial Information Financial Highlights Business Unit Participation 2010 Net Revenues (R$ million) Net Revenues EBITDA 1 10% 16% Others² 90% 84% Others² 56.1 Gross Profit (R$ million) and Gross Margin (%) 0,53 55% 51% 56% 57% EBITDA 1 (R$ million) and EBITDA Margin (%) 19% 0,19 19% % 16% Note: 1 Recurring operating EBITDA (excluding headquarters expenses) 2 Dental segment. Others represent the remaining Tempo business units

31 Agenda 1. Introduction and Company Overview 2. Health Business Unit 3. Dental Business Unit 4. Assistance Business Unit 5. Consolidated Financials 30

32 Agenda 1. Introduction and Company Overview 2. Health Business Unit 3. Dental Business Unit 4. Assistance Business Unit i. Market and Competitive Landscape ii. iii. Business Unit Overview Financial Information 5. Consolidated Financials 31

33 Assistance Market and Competitive Landscape Market Overview 3 Players Account for 80% of the Market Comments Mkt Share Assistance Industry 15.2% 22.0% 5.0% Base: Sept 2010 Source: Tempo estimate 31.3% 26.6% Tempo Europ Assistance Mondial Assistance Brasil Assistência Interpartner Total market 1.345mm, target market 890mm (Bain & Company estimate) Europ highly concentrated with Bradesco Mondial losing relative contribution (Itaú migrating to Porto) Brasil unsignificant in insurance with a higher participation in Affinity Interpartner (Chubb, Itaú cards and Affinity) Strong concentration in the Insurance Industry 32

34 (em R$ milhões) (em R$ milhões) Assistance Market and Competitive Landscape Market Trends Growth driven by the insurance market Evolution of Revenues in the Insurance Market Comments Market grows at a rate of 15.9% per annum Contribution in GDP grew from 3.05% in 2005 to 3.42% in Source: Fenaseg Site, August A 2006A 2007A 2008A 2009A Evolution of Revenues in the Insurance Market Global average contribution in GDP is 7.5% General Insurance and Personal Insurance represent 72% of the market Forecasts indicate a consistent growth in insurance industry through 2013 The assistance industry grows together with the insurance market E 2011E 2012E 2013E Source: Siscorp, August

35 Agenda 1. Introduction and Company Overview 2. Health Business Unit 3. Dental Business Unit 4. Assistance Business Unit i. Market and Competitive Landscape ii. iii. Business Unit Overview Financial Information 5. Consolidated Financials 34

36 Assistance Business Unit Overview Tempo USS Revenues Breakdown Evolution of Gross Revenue and Total Loss (R$000s) 56% % % FY08 FY09 FY10 Revenue Breakdown per Segment Total Gross Revenues Total Loss Loss Ratio (%) 8% 11% 5% 16% 6% 87% 83% 18% 66% FY08 FY09 FY10 Auto Home Personal Comments: Dec 2008 Exit of Bradesco (R$ 80mm in 2008) 2009 Year Implementation of 5 new contracts: HDI 100% vehicle and residential Zurich/Minas Brasil 100% vehicle, residential and life Allianz 60% vehicle Itaú/Unibanco 100% life and residential portfolio Banco do Brasil BB Protection Reduction in vehicle segment concentration Relevant growth in life and home porfolio - improved accident rate when compared to vehicle (vehicle + trucks) Reduction in trucks segment participation highest loss ration 35

37 Assistance Business Unit Overview Distribution Models Model 1. Assistance incorporated as benefits linked to insurance companies' products Current Model (100% of Revenues) USS Direct Relationship Insurance Companies Relationship through Brokers End Consumer Model 2. requests sold as products directly to end consumers Direct sale via contact center and Company website New Alternative (Already in Implementation process) USS Direct Relationship or through Brokers Affinity Direct Sale Own or partner s selling efforts End Consumer 36

38 Assistance Business Unit Overview Key Process Administration of Service Provider Network VOLUME OF SERVICES PROVIDED PER REGION Wide network 20,000+ providers High volume of services requests 1,300mm / year Long Term Relationship with clients average age of 7,8 years 1 5 requests 6 10 requests requests > 30 requests Intensive use of technology GPS, Remote AC.

39 Agenda 1. Introduction and Company Overview 2. Health Business Unit 3. Dental Business Unit 4. Assistance Business Unit i. Market and Competitive Landscape ii. iii. Business Unit Overview Financial Information 5. Consolidated Financials 38

40 Assistance Financial Information Financial Highlights Business Unit Participation 2010 Net Revenues (R$ million) Net Revenues EBITDA Others² 76% 24% Others² 64% 36% Gross Profit (R$ million) and Gross Margin (%) EBITDA 1 (R$ million) and EBITDA Margin (%) % 0,39 41% 38% 35% % ,13 14% % 15% Note: 1 Recurring operating EBITDA (excluding headquarters expenses) 2 Assistance segment. Others represent the remaining Tempo business units

41 Agenda 1. Introduction and Company Overview 2. Health Business Unit 3. Dental Business Unit 4. Assistance Business Unit 5. Consolidated Financials 40

42 Consolidated Financials Financial Highlights 2010 Mix (%) Net Revenues¹ Mix(%) Actual Results 1 Net Revenues (R$mm) assistance 24% dental 10% health 66% EBITDA 1 Mix (%) EBITDA 2 (R$mm) assistance 36% dental 16% health 48% 5% % 3% % 6% Notes: figures does not consider 1 st Quarter results for the Pre-paid business unit 2 Refers to EBITDA including holding expenses. 41

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