2. Disclaimer
This presentation contains forward-looking statements relating to the business
outlook, operating and financial projections, and the growth prospects of Tempo
Participações S.A.
These statements merely represent projections and as such are based exclusively on
Management’s expectations about the future of the business.
Such forward-looking statements depend substantially on changes in market
conditions, the performance of the Brazilian economy, the industry and international
markets, and therefore are subject to change without prior notice.
2
4. Business Units
Healthcare Administration Dental HMO
Assistance Services
Services
Ranking: #5
Ranking: #1
Ranking: #1
Number of lives: 457 thousand
Number of items: 17.3 million
Number of lives: 1.3 million
Underwriting of frequency risk
Underwriting of frequency risk
No underwriting risk. Fee
business only.
4
5. Commercial Sinergies and Common
Operational Platform
Clients Common Back-Office
Administration Services
Network of Service Providers
State-of-the-art Proprietary IT Platform
Corporate
Clients
Insurers
Healthcare
Network Management
HMOs
Network of Service Providers
Corporate
USERS
Clients Dental HMO
Contact Center
B2B2C
HMOs
Network of Service Providers
Assistance Services
Insurers
Claims Processing
B2B2C
5
6. Tempo: A Powerful Combination
of Organic Growth and M&A
Tempo is a result of 10 successful acquisitions since its inception
Acquisition of
Acquisition of
ConnectMed founded by Jose Medlar
USS
Bonchristiano. GP joins the
Specialty Health
Company in March with other Assistance
institutional investors
Acquisition
Acquisition of Acquisition
of Associl2
of Cloe
Gama Saúde
Dental Dental
Health Admin
2000 2001 2002 2003 2004 2006 2007
Acquisition Acquisition of Acquisition of Acquisition of
Odonto Empresa 2
of CRC Gama Odonto Oralgold
Health Admin Dental Dental Dental
Consolidation Expansion into new markets
Acquisition of
Observations: OralTech2
1 Subsidiary of Gama Saúde by the time of its
Dental
acquisition
2 Pending ANS approval
6
8. 12 months, 5 acquisitions...
USS Acquisition
Dec 06
Assistance
Associl Acquisition– 75,000 lives
May 07
Dental
Med-Lar Acquisition
Oct 07
Home Care
Oraltech Acquisition – 30,000 lives
Nov 07
Dental
Odonto Empresa Acquisiton – 220,000 lives
Nov 07
Dental
Total Invested from Dec/06 to Dec/07
R$ 250,000,000.00
8
9. USS integrated in 6 months…
Acquire
First Contact 100% Integrated
Closing
July 07
August 06 December 06
Synergies Before Taxes – EBITDA Annual Impact Goodwill – Tansaction Value Impact
2.0
(R$ MM)
22.0
(R$ MM)
150.0
14.0
8.2
128.0
3.8 34.5
Head Count
Fixed Costs Operational Total
Asset Cost NPV - Taxshield
Equity Goodwill
Efficiencies
Pre - Transaction Post Transaction
Acquisition Cost R$ 150 MM R$ 115,5 MM
EBITDA R$ 25 MM R$ 39 MM
Multiple 6.0 x 2.96 x
9
10. IPO: Tempo in Novo Mercado
Former Executives Management Brasil Warrant Free Float
28,5% 9,3% 7,0% 35,1%
20,1%
P rice per S hare
P rim ary O ffer
S econdary O ffer
Total
IPO
Price per Share R$ 7,00
Primary Offer 56.250.000 Shares
Secondary Offer 3.720.800 Shares
Total R$ 419.765.600,00
10
13. Health Plans- Gama Saúde
Beneficiaries
Beneficiaries - Health Plans
Strong growth in number of lives even though there was
1,310,141 moderate growth in the private regulated health care
market (approx. 5%)
1,061,233
730,385
427,890
2004 2005 2006 2007
Net Revenue(R$ MM)
Net Revenue - Health Plans
(R$ MM)
Strong revenue growth supported by
Net Revenue - Health Plans
increase in the member´s base.
321.3 (R$ MM)
9.5
262.8
Strong fee growth in line with total revenue
214.5 102.8
increase.
9.5
154.2 73.3
250.3
211.2
173.4 74.6
124.0 59.8
61.5
51.6
41.1 18.7
30.2 13.5
2004 2005 2006 2007 4Q06 4Q07
Gross Profit/ Adm Tax
Gross Profit/ Adm Tax Transfer of Medical Costs Home Care
Gross Profit/ Adm Tax
Home Care
13
14. Health Care- Gama Saúde
General and Administrative
General and Administrative Expenses R$ MM) (Excluding Non-Recurring Expenses)
Expenses - Health Plans
(R$ MM)
General and Administrative Expenses - Health Plans
(R$ MM)
18.5% 17.2%
17.2%
14.3%
13.3%
7.3% Operational efficiencies and
45.2 expenses dilution powered by
42.7
36.8
28.5
low cost structure.
10.5 7.5
2004 2005 2006 2007
4Q06 4Q07
General and Administrative Expenses % Net Revenue
General and Administrative Expenses
% Net Revenue
Ajusted EBITDA (R$ MM)
EBITDA - Health Plans
EBITDA - Health Plans
(R$ MM)
(R$ MM)
7.0%
Gama Saúde´s new clients
13.3%
marginal margins are double
the current business margin
3.4%
3.4%
3.2%
13.7
5.0%
22.5
8.9
7.3
3.7
5.0
2004 2005 2006 2007
4Q06 4Q07
EBITDA EBITDA Margin
EBITDA EBITDA Margin
14
15. Dental- Gama Odonto
Beneficiaries
Number of lives covered in 2007 compared to 2006 due to
475.829
three important acquisitions. (Associl, Oraltech and Odonto
Empresa).
335.336
Gama Odonto´s new growth strategy will allow organic
growth above market levels (B2B2C).
140.493
130.646
124.434
103.313
2004 2005 2006 2007
Tempo Novas Aquisições
Net Revenue(R$ MM)
Net Revenue - Dental
(R$ MM)
Net Revenue - Dental
Acquired companies in 2007 are not
(R$ MM)
incorporated in 2007 results.
Net revenue considering pro-forma
acquisitions would have totalled R$ 60
million in 2007..
20.5 21.4
18.1
15.1
5.2
5.4
2004 2005 2006 2007
4Q06 4Q07
15
16. Dental- Gama Odonto
General and Administrative Expenses
Cost of Rendered Services*
Despesas Gerais e Administrativas - Odonto
(R$ MM)
Despesas Gerais e Administrativas
Odonto (R$ MM)
50.7% 41.7%
55.0% Cost of Rendered Services -
53.3%
49.7% 39.8%
Dental (R$ MM) 35.1%
11.4 46.2%
33.2%
10.4
57.4% 32.7%
9.0
46.2%
8.3
7.2
7.2 7.1
2.4
6.3
2.4 3.7
1.7
2004 2005 2006 2007 4Q06 4Q07 4Q06 4Q07
2004 2005 2006 2007
General and Administrative Expenses General and Administrative Expenses
Cost of Rendered Services Medical Loss Ratio
Cost of Rendered Services % Net Revenue % Net Revenue
Net costs of technical provisions Medical Loss Ratio
EBITDA EBITDA - Dental
(R$ MM)
EBITDA - Dental
26.6%
Medical Loss Ratio does not include acquisiitions,
22.9% 33.3%
which will result in a reduction of this index in the
20.4%
15.9%
next results.
5.7
4.7
15.4%
1.8
3.7
The fourth quarter of 2007 already reflects the
2.4
resulting sinergies of USS´s integration.
0.8
4Q06 4Q07
2004 2005 2006 2007
EBITDA EBITDA Margin
EBITDA EBITDA Margin
16
17. Assistance Services- USS
Items – In millions
Items - Assistance Services (in million)
17.3
14.5 16.8 Growth recovery in the number of items covered
16.0
after after slight fall back in 2006.
2004 2005 2006 2007
Net Revenue
Receita Líquida - Assistência
Especializada (R$ MM)
Receita Líquida - Assistência
Especializada (R$ MM)
Strong organic annual growht in the past 4
years driven by services with additonal added
value.
229.9 59.9
206.8 54.0
178.7
151.0
4Q06 4Q07
2004 2005 2006 2007
17
18. Assistance Services- USS
General and Administrative Expenses
Cost of Rendered Services - Assistance Services
of Rendered Services
Cost
(R$ MM) Despesas Gerais e Administrativas - Assistência
Cost of Rendered Services
Assistance Services (R$ MM) Especializada (R$ MM)
57.7%
54.1%
52.4% Despesas Gerais e
50.4% 39.3%
56.8% 38.9%
38.0% Administrativas - Assistência
52.4% 35.4% Especializada (R$ MM)
43.7%
34.2%
124.4
104.3
93.7
87.1 34.0 81.4
67.9
59.4 80.50
28.3
20.5
23.6
4T06 4T07
2004 2005 2006 2007
4Q06 4Q07
2004 2005 2006 2007
General and Administrative
General and Administrative Expenses
Cost of Rendered Services
Cost of Rendered Services Medical Loss Ratio Expenses
% of Net Revenue
Medical Loss Ratio
% of Net Revenue
EBITDA
EBITDA - Assistance Services
EBITDA - Assistance Services
(R$ MM)
(R$ MM)
11.7%
11.6%
Increase in the Loss Ratio is related to providing
10.0%
10.7% 5.0%
services with additional added value
.
24.0
6.0
26.8
4.4%
19.2
The fourth quarter of 2007 already reflects the
2.7
resulting sinergies of USS´s integration.
6.6
2004 2005 2006 2007 4Q06 4Q07
EBITDA EBITDA Margin EBITDA Margem EBITDA
18
19. Strong Cash Genereation and Financial Leverage
Capex vs Ajusted Pro-Forma EBITDA (R$ mm)
55.0%
37.6%
30.2%
14.0%
5.1
4.3 4.0
2.5
2004 2005 2006 2007
Capex Ajusted EBITDA
Capitalization (R$ mm) Goodwill Generation (R$ MM)
Business Model
Dez/ 07 Dez / 07
Asset Light
Cash and Equivalent 404.2 Audited Goodwill 104.5
Short-Term Debt 1.5 Goodwill Generated by 49.2
Recent Acquisitions
Long-Term Debt 55.5
Financial Solidity
Total Goodwill 153.7
Total Debt 57
Fiscal Benefits to be 52.3
Net Debt (Cash) 347.2 Amortized in 5 years
Strong Growth Capacity
19
20. IR Contacts
Tel: +55 11 4208-8069
E-mail: ri@tempopar.com.br
www.tempopar.com.br/ri
