Earnings Release 4Q15

8/19/2019 Earnings Release 4Q15

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TELECONFERENCE

English

Date: 03/24/2016| Hour: 12h00 p.m. (BRST)

Phone: 1(412) 317-5448| Password: DASA

Carlos de BarrosCFO and Investor Relations Officer

[email protected]

Phone: (05511) 4197-5410

Fac Smile: (05511) 4197-5516

www.dasa3.com.br

4th QUARTERAND 2015 RESULTS

DASA announces growth of 3.0% in 4Q15and of 5.1% in 2015

Gross Revenue of R$766.7 million in 4Q15and R$ 3,175.0 million in 2015

Operating Cash Flow of R$88.6 million in4Q15 and R$309.7 million in 2015

DASA ON

Bovespa: DASA3

Last Quoted price:

R$10.95

Average daily trade volume

R$0.3 Million in 2015

Market value

R$3.4 billion

US$0.9 billion

Free Float: 0.4%

mailto:[email protected]:[email protected]://www.dasa3.com.br/http://www.dasa3.com.br/mailto:[email protected]


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4th QUARTER AND 2015 RESULTS

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Barueri, March 23th, 2016:

Diagnósticos da América S.A. – DASA (BOVESPA: DASA3) announced today the results related to the fourth quarter of 2015. Thecompany’s operational and financial information are calculated on a consolidated basis and in million of Reais, based onaccounting practices extracted from the Brazilian Corporate Law, except where stated otherwise. The information hereinrefers to the Company’s performance in the fourth quarter of the year 2015, compared to the fourth quarter of the year 2014,except where stated otherwise. The fourth quarter of the year 2014 includes Pro-Echo and Lafe, companies sold on April,2015.

In this quarter, DASA reached gross revenue of R$766.7 million with a 3.1% growth incomparison to 4Q14 revenue of R$744.1 million. The total gross revenue in 2015 was R$ 3.175.0million, a 5.1% increase compared to 2014.

We had 61 working days in 4Q15, two day less than 4Q14. In 2015, we had 248 days, 1.2% lessthan 2014.

The gross revenue per working day reached R$12.6 million in 4Q15, an increase of 6.4%compared to 4Q14 (R$11.8 million). In 2015, the gross revenue per working day increased 6.3%,reaching R$12.8 million.

The outpatient market reached gross revenue of R$553.5 million in 4Q15, a 0.9% growth whencompared to 4Q14. The outpatient market represents 72.2% of DASA’s total gross revenue. In2015, the gross revenue reached R$ 2,305.6 million, with a 3.3% growth when compared to2014, representing 72.6% of DASA’s total gross revenue.

The hospital market gross revenue reached R$74.7 million in the 4Q15, a 9.7% increase whencompared to 4Q14, equivalent to 9.7% of DASA’s total revenue. In 2015, gross revenue reachedR$ 309.4 million, with 10.2% increase when compared to the gross revenue of R$280.8 million in2014, equivalent to 9.7% of DASA’s total revenue.

The lab-to-lab market ended the quarter with 5,184 customers serviced in the country. Thegross revenue of this market expanded by 10.5% in the 4Q15, reaching R$96.1 million, whichrepresents 12.5% of DASA’s total revenue. In 2015, the gross revenue expanded by 14.8%compared to the gross revenue of R$ 335.6 million 2014, reaching R$385.1 million, whichrepresents 12.1% of DASA’s total revenue.

The public market reached gross revenue of R$42.3 million in 4Q15, an increase of 5.3%. Thepublic market represents 5.5% of the total revenue of DASA. In 2015, the gross revenuereached R$ 174.9 million in 2015, a decrease of 0.4% compared to 2014, which represents 5.5%of the total revenue of DASA.

Financial performance highlights


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Revenue per business (R$ million) – Markets

Revenue per Line of Service (R$ million) – Clinical Analysis XRID (Radiology and Image Diagnostics)

We ended the quarter with 532 units, of which 66 are hospital units.

In 4Q15, EBITDA amounted to R$83.8 million, compared to R$54.4 million in 4Q14, representing12.3% of net revenue. In the twelve months of 2015, EBITDA amounted to R$345.2 million,compared to R$410.6 million in the same period of last year. The 2015 results includes theoperations of the first three months of the companies Pro-Echo Cardiodata Serviços Médicos


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Ltda. and Lafê Serviços Diagnósticos Ltda, sold in April 1, which were accounted for using theequity method.

CAPEX investments in 4Q15 totaled R$78.8 million. These investments were directed to: (i)development and deployment of production systems and services and renovation of technology,(ii) the acquisition, renovation and expansion of existing units and (iii) purchase of imagingequipment. In 2015 CAPEX totaled R$ 248.2 million.

Highlights 4Q14 4Q15 ∆ % 2014 2015 ∆ %

Total Gross Revenue (R$ MM) 744.1 766.7 3.0% 3,021.7 3,175.0 5.1%Outpatient Revenue (R$ MM) 548.8 553.5 0.9% 2,231.2 2,305.6 3.3%

Hospitals Revenue (R$ MM) 68.2 74.7 9.7% 280.8 309.4 10.2%

Lab-to-lab Gross Revenue 86.9 96.1 10.5% 335.6 385.1 14.8%

Public Gross Revenue 40.2 42.3 5.3% 174.2 174.9 0.4%

Working days 63 61 -3.2% 251 248 -1.2%

Gross Revenue (R$ MM) / Working day 11.8 12.6 6.4% 12.0 12.8 6.3%

N° Total units 532 532 0.0% 532 532 0.0%

N° PSCs 467 466 -0.2% 467 466 -0.2%

N° Hospital units 65 66 1.5% 65 66 1.5%

EBITDA (R$ MM) 54.4 83.8 54.0% 410.6 345.2 -15.9%

Ebitda margin (%) 8.2% 12.3% 4.0 p.p 15.0% 12.4% -2.6 p.p

Net income (R$ MM) -21.5 4.3 -120.1% 82.6 24.2 -70.7%

CAPEX (R$ MM) 91.9 78.8 -14.2% 207.8 248.2 19.5%


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Outpatient Market

Revenue per Line of Service (R$ million) Revenue per brand (R$ million)

The company maintains the strategy of refurbishing its units to increaseservice levels and its menu of exams.

The standard segment expanded by 0.5%, and the premium andexecutive segment expanded by 1.1%.

Average Requisition Price (R$) and Requisition Volume (million)

Financial performance


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We continue focusing on enriching our RID exam mix, with themodernization and expansion of the imaging park, specially MRIand CT equipment, and the increase in the number of clinicalanalysis tests per requisition. These factors contributed to theincrease in the average value per requisition of R$27.3, or 17.6%,when compared to the fourth quarter of 2014.

Hospital Market

Revenue per Line of Service (R$ million)

Average Requisition Price (R$) and Requisition Volume(million)


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Compared to the same period of last year, there was an increase in

average requisition price, due to richer mix of clinical analysis.

Lab-to-lab

Gross Operational Revenue (R$ million) Performance (R$ million)

This business performance is a reflection of the strategy to increaseour capillarity, by pursuing new customers in our current routes,opening new routes, improving our product mix, and strongerrelationship with laboratories.

Public Sector

Gross Operational Revenue (R$ million) Performance


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We finished the quarter with a total of 31 clients, covering a

total of 629 collection points (71 Hospital Units and 558 of the

Outpatient Network). We remain highly selective when acquiring

new customers in this segment.

Revenue Taxes

In 4Q15, we recorded R$45.6 million of revenue taxes or 5.9% of

the gross revenue. In 4Q14, we recorded R$ 47.9 million, or 6.4%

of the gross revenue.

The build up of net revenue is presented below:

Net Operating Revenue

Net operating revenue reached R$728.2 million in 4Q15, a 0.05%

increase when compared to 4Q14.

Cost of Services

The cost of services includes expenses related to the operation

of the PSCs, cost of clinical analysis production and RID.

PSC costs are divided into fixed – personnel, general and public

utilities, rents and facility maintenance; and variable - materials

used in the collection and production of clinical tests and RID,

which may vary according to the volume of requisitions

processed. Costs related to the processing of clinical tests

include reagents, personnel and the operating costs of thecentral laboratories. RID processing costs consist of expenditures

with equipment maintenance, and the hiring of specialized

medical clinics to issue reports on these tests.

The changes on the line of personnel, materials, services and

utilities and general expenditures are due to the characteristics

of each brand and to the difference between their costs

structure. The B2C market has collection units and all costs

related to this operation, especially personnel, services and

occupancy costs. The B2B market has its main cost associated tomaterial and logistics, as it does not have collection units.

4Q14 4Q15

% Gross

Revenue

4Q14

% Gross

Revenue

4Q15

∆ 4Q15 x

4Q14 %

Gross revenue 744.1 766.7 - - 3.0%

Taxes (47.9) (45.6) -6.4% -5.9% -4.9%

Provision for losses due to

disallowance and default (22.2) (25.2) -3.0% -3.3% 13.3%

Discounts (11.4) (12.3) -1.5% -1.6% 7.9%

Deductions (33.6) (37.5) -4.5% -4.9% 11.5%

Net revenue 662.6 683.7 89.0% 89.2% 3.2%


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4Q14 3Q15 4Q15 4Q14 3Q15 4Q15∆ 4Q15 x

4Q14 %

∆ 4Q15 x

3Q15 %Personnel 139.8 144.6 142.6 21.1% 19.9% 20.9% 2.0% -1.4%

Materials 123.5 141.5 132.1 18.6% 19.4% 19.3% 6.9% -6.6%

Services and Utilities 183.2 194.1 192.0 27.6% 26.7% 28.1% 4.8% -1.1%

General 9.4 9.1 7.2 1.4% 1.2% 1.1% -23.4% -20.4%

Cost of Services Cash 455.9 489.3 473.9 68.8% 67.2% 69.3% 3.9% -3.1%

Depreciation and amortization 28.5 35.4 34.8 4.3% 4.9% 5.1% 22.1% -1.6%

Cost of Services 484.5 524.7 508.7 73.1% 72.1% 74.4% 5.0% -3.0%

In R$ Million Variation %% of Net Revenues

1) Personnel costs increased because of annual collective bargaining

agreements (São Paulo - May 2015, Rio de Janeiro – November

2015), but was offset by the decrease in hiring.

2) Material costs were impacted by growth in the lab-to-lab market

and mix of clinical analysis tests

3) The line of services and utilities increased due to new PatientService Centers, occupancy costs, and commissions of Lab-to-Labsales force.

4) The general costs decreased due to savings in several accounts astravels, meals and fuels.

Cash Gross Profit

In the 4Q15, the cash gross profit was R$209.8 million, a 1.5%

increase in relation to 4Q14, and the cash gross margin of the

period reached 30.7%.

Operating Expenses

Below are the main variations in operating expenses as a

percentage of net revenue and in relation to the previous year:

Cost of Services - Quarter


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4Q14 3Q15 4Q15 4Q14 3Q15 4Q15∆ 4Q15 x

4Q14 %

∆ 4Q15 x

3Q15 %

General and Administrative 123.7 121.5 120.7 18.7% 16.7% 17.7% -2.5% -0.7%

Profit Sharing Program 5.6 11.9 4.8 0.8% 1.6% 0.7% -14.3% -59.6%

Other Operating Revenues/ Expenses 22.9 2.7 0.5 3.5% 0.4% 0.1% -97.9% -82.5%

Equity Method - - - 0.0% 0.0% 0.0% 0.0% 0.0%

Operating Expenses Cash 152.2 136.1 125.9 23.0% 18.7% 18.4% -17.2% -7.5%

Depreciation and Amortization 13.9 13.6 13.8 2.1% 1.9% 2.0% -0.7% 1.2%

Operating Expenses 166.1 149.7 139.7 25.1% 20.6% 20.4% -15.9% -6.7%

General and administrative expenses were impacted by

collective bargaining agreements, but the reduction in hiring

offset it.

In Profit Sharing Program, a provision of R$4.8 million was made.

EBITDA – Quarter

Operating Expenses - Quarter

8.2%

12.3%0.2%

-0.7% -0.4%

0.4%

4.5%

EBITDA 4Q14 Personnnel Materials Services and

Utilities

General SG&A EBITDA 4Q15


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54.468.7

93.2 102.8

83.88.2%

10.1%

12.8%14.1%

12.3%

4Q14 1Q15 2Q15 3Q15 4Q15

Ebitda Ebitda Margin

EBITDA – Year

15,0% 12,4%

-0.7%-1.0%

-1.0% 0.1% 0.0%

EBITDA 2014 Personnnel Materials Services and

Utilities

General SG&A EBITDA 2015

443.6

410.6

345.2

17.8%

15.0%

12.4%

2013 2014 2015

Ebitda Ebitda Margin


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R$ million 4Q14 4Q15D

2014 2015D

Net Income (Loss) -21.5 4.3 -120.1% 82.6 24.2 -70.7%

(+) Income Tax and Social Contribution 9.7 3.2 -66.9% 59.8 29.1 -51.3%

(+) Net Financial Expenses 23.8 27.7 16.2% 98.6 105.9 7.4%

(+)Depreciation and Amortization 42.4 48.6 14.6% 169.6 186.0 9.7%

EBITDA (R$ MM) 54.4 83.8 54.0% 410.6 345.2 -15.9%

Ebitda margin (%) 8.2% 12.3% 4 p.p. 15.0% 12.4% -2.6 p.p.

EBITDA Demonstration

2015 results includes the operations of the first three months ofthe companies Pro-Echo Cardiodata Serviços Médicos Ltda. and

Lafê Serviços Diagnósticos Ltda, sold in April 1, which were

accounted for using the equity method.

Depreciation and Amortization

The expenses with depreciation and amortization summed up to

R$48.6 million, or 7.1% of the net revenue in the quarter, against

R$42.4 million (6.4% of the net revenue) in 4Q14.

Net Financial Expenses

The breakdown of net financial expenses is:

Investment Income: Refers to interest gains from cash investments

and mark to market of the securities.

Debentures: Refers to interest expenses in our debentures,

including the transaction costs.

R$ (Millions) 4Q14 4Q15

Net Financial Expenses (23.8) (27.7)

Investment Income 8.3 10.5

Debentures (32.9) (43.4)

Other loans and financing expenses (3.6) (4.5)

Other 4.3 9.7


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Other Financing Expenses: Interest on lease agreements in

foreign and/or local currency, working capital and other loan

expenses.

Other: The amounts making up this line are: bank expenses;

credit card fees; notary office fees; financial discounts granted

to customers; restatement of contingencies; Tax on Financial

Transactions (IOF); exchange gains/losses on lease agreements;

income tax paid on remittance of interest abroad; interests

received from clients; and other expenses not related to intereston loans and financing.

Income Tax and Social Security Contribution

The total income tax and social contribution presented in the

4Q15 a balance of R$3.2 million. Of this amount, R$0.6 million

was current and R$2.6 million was deferred.

Net Profit

In the 4Q15, the profit was R$4.3 million, as compared to a lossof R$21.5 million in 4Q14.

Goodwill to be amortized in next years (Thousand R$)

DASA net debt totaled R$718.2 million in 4Q15. About 71.7% of

DASA’s total gross indebtedness is long term and 0.1% is

denominated in foreign currency. We settled a loan of US$ 30.4

million on July. The debt in foreign currency is related to lease

Indebtedness

Year Goodwill

2016 209.3

2017 206.0

2018 199.3

2019 167.7

2020 9.6

2021 9.6

2022 4.0

Total 805.5


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of equipments. The national currency debts are largely related

to the debentures.

Includes the balanced sheet items: loans and financing, debentures and financial instruments.

Cash Flow Analysis (R$ million)

We have detailed under this section the main variations in the

cash flow statement.

Breakdown of net indebtedness

R$ Millions 4Q14 4Q15

Short Term (433.6) (354.2)

Domestic Currency (350.8) (353.3)

Foreing Currency (82.9) (0.9)

Long Term (794.6) (895.4)

Domestic Currency (794.0) (895.4)

Foreign Currency (0.6) -

Total ST + LT (1,228.3) (1,249.6)

Cash and Cash equivalent 440.2 531.3

Domestic currency 355.4 531.3

Foreing currency 84.8 0.0

Net Debt (788.0) (718.2)

Covenants Dec/14 Mar/15 Jun/15 Sept/15 Dec/15

1º) Net Debt / Ebitda = 2,0 4.16 3.70 3.54 3.02 3.26

Management Cash Flow (R$ Million) 4Q15 2015Accounting EBITDA 83.8 345.2Operacional working capital 111.7 109.7

Other working capital accounts (79.2) (39.0)

Financial expenses (27.7) (105.9)

Income tax (0.1) (0.4)

Operational cash flow 88.6 309.7

Capex (78.8) (248.2)

Free cash flow 9.8 61.5


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The average collection period is 76.7 days.

The provision rule is show in the table below:

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

Average collection period (days)

RECEIVABLES

Provision rule

91 to 120 days 25%

121 to 180 days 50%

181 to 360 days 75%

More than 361 days 100%

R$ million 4Q14 1Q15 2Q15 3Q15 4Q15Accounts receivable 517.6 478.7 522.4 501.7 453.6

Past due 0-90 95.5 101.9 117.1 122.6 121.4

Past due 91 - 120 8.6 34.5 12.6 12.5 12.6

Past due (more than) 120 69.6 92.5 102.8 143.0 76.4

Provisions (61.7) (78.2) (85.2) (124.1) (94.1)

Total Receivables 629.5 629.3 669.7 655.8 569.9

Coverage Index¹ 88.6% 84.6% 82.9% 86.8% 123.1%

87 4

83 3

83 9

82 9

76 7

4Q 4 Q 5 2Q 5 3Q 5 4Q 5


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The investments in CAPEX in 4Q15 totaled R$78.8 million, 14.2%

lower than the same period in 2015. The investments were directedmostly to: (i) development and deployment of production systems

and services and renovation of technology, (ii) the acquisition,

renovation and expansion of existing units and (iii) purchase of

imaging equipment.

CAPEX (R$ milion) Breakdown CAPEX 4Q15

Investments

ROIC

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

8.4%

7.0%

5.9%

4.7%

5.4%

4Q14

LTM

1Q15

LTM

2Q15

LTM

3Q15

LTM

4Q15

LTM

207.8

248.2

30.241.8 34.7

68.051.0

59.6

91.978.8

2014 2015 1Q14 1Q15 2Q14 2Q15 3Q14 3Q15 4Q14 4Q15

Information

Technology

R$ 13.4 MM

Opening and

Expansion of

PSCs

R$ 25.8 MM

Equipment

R$ 39.7 MM

17.0%

50.3%

32.7%


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DASA shares closed 2015 at R$10.10, accumulating a decrease of

9.3% in the year, versus 13.3% decrease of the Ibovespa. Over

this period, DASA shares were transacted on 100% of Bovespa’s

trading sessions, summing up to a financial volume of R$81.8

million (daily traded average of R$0.3 million).

Performance in stock exchange (DASA ON versus IBOVESPA)

Bovespa information

Capital market

N o v - 0 4

F e b - 0 5

M a y - 0 5

A u g - 0 5

N o v - 0 5

F e b - 0 6

M a y - 0 6

A u g - 0 6

N o v - 0 6

F e b - 0 7

M a y - 0 7

A u g - 0 7

N o v - 0 7

F e b - 0 8

M a y - 0 8

J u l - 0 8

O c t - 0 8

J a n - 0 9

A p r - 0 9

J u l - 0 9

O c t - 0 9

J a n - 1 0

A p r - 1 0

J u l - 1 0

O c t - 1 0

J a n - 1 1

A p r - 1 1

J u l - 1 1

O c t - 1 1

J a n - 1 2

A p r - 1 2

J u l - 1 2

O c t - 1 2

J a n - 1 3

A p r - 1 3

J u l - 1 3

O c t - 1 3

D e c - 1 3

M a r - 1 4

J u n - 1 4

S e p - 1 4

D e c - 1 4

M a r - 1 5

J u n - 1 5

S e p - 1 5

D e c - 1 5

VOLUME (R$) DASA3 IBOVESPA

Close R$ (12/30/2015) 10.10

2015 High (R$ per Share) 12.11

2015 Low (R$ per Share) 7.59

% Chg. In 2015 -9.3%

Market Cap (R$ MM) 3,149.2

Market Cap (US$ MM) 806.6

Free Float 25.3%

Outstanding Shares 311,803,015

Bovespa - DASA ON


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Income statement

R$ million 4Q14 4Q15 % 2014 2015 %

Gross Operating Revenues 744.1 766.7 3.0% 3,021.7 3,175.03 5.1%

Deductions (81.6) (83.1) 1.8% (281.8) (380.6) 35.1%

Sales Taxes (47.9) (45.6) -4.9% (183.9) (189.5) 3.0%

Discounts (33.6) (37.5) 11.5% (97.9) (191.2) 95.3%

Net Operating Revenues 662.6 683.7 3.2% 2,740.0 2,794.4 2.0%

Cost of Services Rendered (484.5) (508.7) 5.0% (1,896.2) (2,026.0) 6.8% Personnel (139.8) (142.6) 2.0% (541.1) (570.3) 5.4%

Materials (123.5) (132.1) 6.9% (494.3) (531.9) 7.6%

Services and Utilities (183.2) (192.0) 4.8% (715.9) (759.1) 6.0%

General (9.4) (7.2) -23.4% (35.3) (34.5) -2.2%

Depreciation and amortization (28.5) (34.8) 22.1% (109.6) (130.1) 18.8%

Gross Profit 178.1 174.9 -1.8% 843.8 768.4 -8.9%

Operating Expenses (166.1) (139.7) -15.9% (602.8) (609.2) 1.1%

General and Administrative (123.7) (120.7) -2.5% (484.9) (506.5) 4.5%

Profit Sharing Program (5.6) (4.8) -14.3% (35.7) (42.4) 18.7%

Other Operating Revenues/ Expenses (22.9) (0.5) -97.9% (22.1) (6.1) -72.5%

Equity method - - NA - 1.6 NA

Depreciation and Amortization (13.9) (13.8) -0.7% (60.0) (55.9) -6.9%

Net Financial Expenses (23.8) (27.7) 16.2% (98.6) (105.9) 7.4%

Operating Earnings (11.8) 7.5 -163.8% 142.4 53.3 -62.6%

Income Tax and Social Contribution (9.7) (3.2) -66.9% (59.8) (29.1) -51.3%

Net Income (Loss) (21.5) 4.3 -120.1% 82.6 24.2 -70.7%

Minoritary shareholders (0.0) (0.1) (0.4) (0.3)


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Consolidated balance sheet (R$ thousands)

Balance Sheet - R$ thousands 4Q14 4Q15 4Q15 4Q14 4Q15 4Q15

tal Assets 4,609,536 4,879,807 4,681,796 Total equity and liabilities 4,609,536 4,879,807 4,681,796

rrent 1,411,477 1,486,603 1,352,144 Current liabilities 810,704 826,147 748,472

sh and cash equivalents 282,740 400,503 317,748 Accounts payable to suppliers 117,148 134,732 161,328

rketable securities 165,239 140,324 159,555 Loans and financing 115,237 57,247 58,028

counts receivable 652,854 651,880 567,339 Tax liabilities 17,216 20,108 19,060

ventories 71,955 69,362 70,099 Social security and labor liabilities 134,734 176,102 119,795

coverable taxes 186,948 184,909 202,572 Installment payment of taxes 956 331 729

epaid expenses 1,025 8,159 6,881 Accounts payable from acquis ition of s ubs idiaries 3,783 998 912

dicial deposits - - - Debentures 318,932 349,874 296,170

her current assets 50,717 31,465 27,949 Dividends and interest on shareholders’ equity 19,622 97 5,845

sets held for sale - - - Financial instruments - - -

ncurrent assets 3,198,058 3,393,204 3,329,652 Other accounts payable 83,077 86,657 86,604

ng-term receivables 148,874 290,331 248,082

rketable securities at fair value 25,555 115,561 73,352 Noncurrent liabilities 1,026,665 1,262,288 1,143,373

ferred tax assets 56,458 54,033 52,693 Long-Term Liabilities 1,026,665 1,262,288 1,143,373

her credits 2,942 52,383 52,706 Loans and financing 51,289 42,942 47,710

epaid expenses 762 390 114 Installment payment of taxes 3,559 3,329 3,232

dicial deposits 63,157 67,964 69,217 Deferred taxes 134,849 208,436 161,492

trumentos financeiros derivativos - - - Provision for contingencies 61,231 71,996 60,541

vestments 803 529 531 Accounts payable from acquis ition of subs idiaries 30,265 23,681 21,031

operty and Equipment 697,738 717,699 746,384 Debentures 743,325 909,780 847,648

angible assets 2,350,643 2,384,645 2,334,655 Related parties - - -

Financial instruments derivatives - - -

Others 2,148 2,125 1,720

Total equity 2,772,166 2,791,373 2,789,950

Capital 2,234,135 2,234,135 2,234,135

Special reserve for goodwill on merger 65,366 65,366 65,366

Profit reserves 486,592 486,045 504,203

Equity evaluation adjustment 315 - -

Retained Earnings - 19,589 -

Granted options 1,769 17 17

Treasury stock (16,905) (14,677) (14,677)

Non-controlling interests 894 897 906


20/23


20/23

Statement of cash flows (R$ thousands)

AccountQuartely

10/01/14 to 12/31/14

Quartely

07/01/15 to 09/30/15 Year-to-date 2014 Year-to-date 2015

Net cash from operating activities 75,599 129,240 466,976 494,329

Cash from operations 120,760 69,256 507,325 468,294

Net income for the period (21,520) 4,326 82,647 24,204

Depreciation and amortization 42,447 48,665 169,681 186,097

Restatement of contingencies 15,340 (4,033) 36,196 21,380

Deferred tax 17,768 2,273 38,264 26,575

Res tatement of interes t and exchange var iation on loans 40,543 447 156,665 203,222

Residual Poperty and equipment and intangible assets write off 24,593 3,180 25,567 15,314

Stock option plan 12 - 503 (386)

Provision for disallow ance and default 7,395 (30,897) 11,864 33,467

Restatement of interest and exchange variation on finnancial investments (5,818) 46,665 (14,062) (38,250)

Result on equity interest sale - - - 2,514

Accrued receivable for equity interest sale - (1,370) - (5,843)

Changes in assets and liabilities (44,970) 60,069 (24,386) 26,429

Increase in accounts receivable and other receivables 18,775 116,762 (95,301) 26,849

Increase in inventories (6,770) (737) (12,572) 1,845

Increase in other current assets (10,508) (11,342) (18,792) (12,272)

Decrease (increase) in other non-current assets (7,322) (1,286) 53,532 1,168

Decrease in trade accounts payable 29,618 26,596 51,669 45,074

Increase in accounts payable and provisions (68,763) (69,924) (2,922) (36,235)

Other (191) (85) (15,963) (394)

Income tax and social contribution paid (191) (85) (15,963) (394)

Net cash from investing activities (175,805) (57,786) (285,793) (254,460)

Additions to property and equipment (70,301) (69,853) (169,432) (215,529)

Additions to intangible assets (21,567) (8,966) (38,369) (33,124)

Proceeds from sale of property and equipment (84,841) - (105,179) -

Financial Investments - (82,083) 268 (262,590)

Redemption of marketable securities f or trading 904 103,116 26,919 248,434

Equity interest sale - - - 8,349

Net cash from financing activities (133,659) (154,209) (434,324) (197,107)

Loans taken out 3,666 9,697 134,259 450,198

Payment of loans (8,716) (68,260) (329,699) (432,029)

Dividends and IOC paid - - (31,372) (19,544)

Payment of interest on loans (128,609) (60,989) (207,512) (161,075)

Exchange rate variation on cash and equivalents - - - -

Confirmimg operations - 2,729 2,729

Debentures buyback - (37,386) (37,386)

Increase (decrease) in cash and cash equivalents (233,865) (82,755) (253,141) 42,762

At beginning of period 516,605 400,503 535,881 274,986

At end of period 282,740 317,748 282,740 317,748


21/23


21/23

Statement of added value (R$ thousands)

(=) 1. Revenue 747,150 798,873 3,025,855 3,151,074

Sales of goods, products and services 744,119 766,742 3,021,729 3,175,025

Other revenue 3,060 2,274 4,283 10,556

Reversal of allow ance for doubtful accounts (29) 29,857 (157) (34,507)

(=) 2. Inputs acquired from third parties (396,837) (430,943) (1,473,987) (1,647,306)

Cost of products, goods and services sold (265,606) (278,528) (1,045,488) (1,117,626) Materials, energy, third-party services and other (131,231) (152,415) (428,499) (529,680)

Recovery/Loss of assets (354,456) (428,585) - -

Other - - - -

3. = (1-2) Gross value added 350,313 367,930 1,551,868 1,503,768

Retention (42,500) (48,665) (169,681) (186,097)

4. Depreciation, amortization and depletion (42,500) (48,665) (169,681) (186,097)

Other - - - -

5. = (3-4) Net value added produced 307,813 319,265 1,382,187 1,317,671

(=) 6. Transferred value added received 28,588 26,911 95,061 107,437

Equity pickup 1,201,555 1,137,468 - 1,630

Financial income 28,588 28,541 95,061 107,437

Others - (1,630) - -

7. = (5+6) Total value added to be distributed 336,401 346,176 1,477,248 1,425,108

(=) 8. Distribution of value added 336,401 347,806 1,477,248 1,426,738

Personnel 178,612 168,978 688,152 683,398 Taxes, fees and contributions 92,342 82,648 376,111 366,774

Debt remuneration 86,967 91,854 330,338 352,362

IOC and dividends (21,520) 4,326 82,647 24,204

Retained profits (41,092) (1,432) 62,745 18,157

Non-controlling interest 28 102 358 391

20152014AccountQuartely

07/01/14 to 09/30/14

Quartely

07/01/15 to 09/30/15


22/23


22/23

Statement of changes in shareholder´s equity (R$ thousands) - quarter

10/01/2014 to 12/31/2014

Opening balances 2,234,135 50,217 423,532 103,837 629 2,812,350 866 2,813,217

Adjusted opening balances 2,234,135 50,217 423,532 103,837 629 2,812,350 866 2,813,217

Transactions with shareholders - - - (19,544) - (19,531) - (19,531)

Granted Options - - - - - 13 - 13

Dividends - - - (19,544) - (19,544) - (19,544)

Total comprehensive income - - - (21,548) - (21,548) 28 (21,520)

Net income for the period - - - (21,548) - (21,548) 28 (21,520)

Other comprehensive income - - - - - - - -

Non controlling sharing - - - - - - - -

Internal Changes in Equity - - 63,059 (62,745) (314) - - Addtional Proposed Dividends - - 62,745 (62,745) - - - -

Additional proposed dividend - - - - - - - -

Depreciation of deemed cost - - 314 - (314) - - -

Closing balances 2,234,135 50,230 486,591 82,289 315 2,771,272 894 2,772,166

10/01/2015 to 12/31/2015

Opening balances 2,234,135 50,706 486,046 19,589 - 2,790,476 897 2,791,373

Adjusted opening balances 2,234,135 50,706 486,046 19,589 - 2,790,476 897 2,791,373

Transactions with shareholders - - - (5,656) - (5,656) - (5,656)

Granted Options - - - - - - - -

Dividends - - - (5,656) - (19,544) - (19,544)

Shares on treasury tranfered - - - - - - - -

Total comprehensive income - - - 4,224 - 4,224 9 4,233

Net income for the period - - - 4,224 - 4,224 680 4,904

Other comprehensive income - - - - - - (671) (671)

Non controlling sharing - - - - - - (671) (671)

Internal Changes in Equity - - 18,157 (18,157) - - - -


Revaluation reverse - - - - - - - -

Addtional Proposed Dividends - - 562 (562) - - - -

Depreciation of deemed cost - - - - - - - -

Closing balances 2,234,135 50,706 504,203 - - 2,789,044 906 2,789,950

Description Paid-In

Capital

Capital Reserve

Granted options and

treasury shares

Profit

Reserves

Retained earnings

accumulated

losses

Other

comprehensive

income

Equity Non-controlling

interest

Consolidated

equity

Description Paid-In

Capital

Capital Reserve

Granted options and

treasury shares

Profit

Reserves

Retained earnings

accumulated

losses

Other

comprehensive

income


interest

Consolidated

equity


23/23


Statement of changes in shareholder´s equity (R$ thousands) - year

01/01/2014 to 12/31/2014

Opening balances 2,234,135 49,727 423,409 - 944 2,708,215 596 2,708,811

Adjusted opening balances 2,234,135 49,727 423,409 - 944 2,708,215 596 2,708,811

Shareholders capital transaction - 503 - (19,544) - (19,041) - (19,041)

Granted Options - 503 - - - 503 - 503

Dividends - - - (19,544) - (19,544) - (19,544)





Internal Changes in Equity - - 63,183 (62,745) (629) (191) - (191)


Additional proposed dividend - - - - - - - -


Closing balances 2,234,135 50,230 486,592 - 315 2,771,272 894 2,772,166

01/01/2015 to 12/31/2015

Opening balances 2,234,135 50,230 486,593 - 315 2,771,273 894 2,772,167

Adjusted opening balances 2,234,135 50,230 486,593 - 315 2,771,273 894 2,772,167

Shareholders capital transaction - 476 (862) (5,656) - (6,042) - (6,042)

Granted Options - (1,752) - - - (1,752) - (1,752)

Shares on treas ury tranfered - 2,228 (862) - - 1,366 - 1,366

Dividends - - - (5,656) - (5,656) - (5,656)





Internal Changes in Equity - - 18,472 (18,157) (315) - - -


Revaluation reverse - - - - - - - -

Addtional Proposed Dividends - - 562 (562) - - - -


Closing balances 2,234,135 50,706 504,203 - - 2,789,044 906 2,789,950

Description Paid-In

Capital

Capital Reserve

Granted options and

treasury shares

Profit

Reserves

Retained earnings

accumulated

losses

Other

comprehensive

income


interest

Consolidated

equity


interest

Consolidated

equity

Other

comprehensive

income

Description Paid-In

Capital

Capital Reserve

Granted options and

treasury shares

Profit

Reserves

Retained earnings

accumulated

losses

Documents

Earnings Release 4Q15