2 q08


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2 q08

  1. 1. 2Q08 Earnings Release Luis Alberto M. L. Reátegui CEO Rodin Spielmann CFO and Investor Relations Officer Marcelo Almeida Business Development Officer
  2. 2. 2Q08 Highlights 2 <ul><li>Proportional combined net revenue was R$ 225.9 million in 2Q08, a 132.9% growth over 2Q07. </li></ul><ul><li>Proportional combined EBITDA totaled R$ 7.1 million , a 168.2% increase over 2Q07. </li></ul><ul><li>Net Revenue in the 1H08 stood at R$ 405.6 million , a 110.6% increase over 1H07 . </li></ul><ul><li>The 1H08 EBITDA came to R$ 8.8 million , a 15.1% rise against 1H07. </li></ul><ul><li>Capital Increase : successfully concluded in July 2008, and totaling R$ 100.5 million , by which Centennial Asset Mining LLC, company related to the EBX group, subscribed 52% of the new shares to hold a total interest of 7.87% of Ideiasnet’s capital stock. </li></ul>
  3. 3. 3 <ul><li>Election of the new Ideiasnet´s CEO: Luis Alberto Monteiro Lobato Reátegui </li></ul><ul><li>Consolidation of the women’s solutions segment: through Bolsa de Mulher S.A., Ideiasnet consolidated the women´s segment with the acquisition of the portals Estrela Guia, Feminice and Bem Leve. With this, it will reach more than 5.7 million unique users per month , 28.0% market share, becoming the largest media group focusing on the online female audience in Brazil, as described in the Subsequent Events section. </li></ul><ul><li>Ideiasnet started implementing several measures to recover the profitability and promote the accelerated growth of Softcorp – as described in the Subsequent Events section. </li></ul><ul><li>For 2008, Ideiasnet maintains its growth estimate for the proportional combined gross revenue between 20.0% and 25.0%, and EBITDA between 50.0% and 60.0%. These projections do not consider any possible contribution from iMusica, Virtus, the recent Bolsa de Mulher deal, or future mergers and acquisitions. </li></ul>2Q08 Highlights
  4. 4. <ul><li>Improve of EBITDA margins: 2Q08 was characterized by the improvement of the EBITDA margins in the invested companies, notably Officer and Padtec . </li></ul><ul><li>Analyst Coverage: Brascan Corretora began coverage of Ideiasnet’s, indicating a fair price of R$ 13.27. Brascan is the first brokerage firm to value the companies iMusica, Bolsa de Mulher and NetMovies in addition to Officer and Padtec. </li></ul><ul><li>The following were elected to Ideiasnet’s Board of Directors : Luiz Arthur Andrade Correia , currently serving in EBX Investments’ financial management; Luiz Paulo Saade Montenegro , Vice-President and partner of IBOPE Group, and Manoel Horácio Francisco da Silva , former CEO of Telemar. </li></ul>The graphs in the following pages indicate the results of the 2Q08 and 1H08 compared to the results of the same periods in 2007 (2Q07 and 1H07), with and without pro forma adjustments, as well as comparison of annual amounts. Ideiasnet Portfolio 4
  5. 5. NET REVENUE (In R$ Millions) 5
  6. 6. EBITDA (in R$ Millions) 6
  7. 7. NET INCOME (in R$ Millions) 7
  8. 8. Portfolio Segmentation Net Revenue 8 <ul><ul><li>E-Commerce and Content – led by Officer Softcorp and Pini. </li></ul></ul><ul><ul><li>Infrastructure and Software – led by Padtec and Automatos. </li></ul></ul><ul><ul><li>Wireless </li></ul></ul><ul><ul><li>IdeiasVentures – led by Bolsa de Mulher, iMusica, Media Factory and NetMovies. </li></ul></ul>Net Revenue 2Q07 Net Revenue 2Q08
  9. 9. EBITDA 2QT07 EBITDA 2Q08 9 Portfolio Segmentation EBITDA
  10. 10. Portfolio Highlights in the 2Q08 <ul><li>PADTEC - Optical Communication Network solutions - % IDNT: 34,2% </li></ul><ul><li>In 2Q08, Padtec recorded an 81.0% growth in net revenue over the same quarter in 2007. </li></ul><ul><li>The company’s EBITDA in the 2Q08 recorded a 36.9% rise against 2Q07. </li></ul><ul><li>Padtec’s 2Q08 highlights were the acquisition of three important new clients: CTBC, GVT and Telefônica. </li></ul><ul><li>OFFICER - Distribution of IT products – % IDNT: 100,0% </li></ul><ul><li>In 2Q08, Officer recorded net revenue of R$ 193.8 million , up 20.2% against the same period in 2007. </li></ul><ul><li>An improvement in the company’s EBITDA of R$ 7.0 million , was registered last quarter, representing a 126.5% increase over 2Q07, with 3.6% a margin . </li></ul><ul><li>Linksys, a Cisco company, entered into an agreement with Officer for the distribution of its entire line of equipment. The agreement will provide Officer with distribution rights to the entire Brazilian market. </li></ul><ul><li>Recently, Officer launched a new e-commerce website focused on its resellers. Internet sales are expected to increase revenue from R$10.0 million to approximately R$30.0 million per month. </li></ul>10
  11. 11. Portfolio Highlights in the 1Q08 <ul><li>AUTOMATOS - IT infrastructure management – %IDNT: 34,6% </li></ul><ul><li>Automatos (70.0%) and Telefônica (30.0%) created TecTotal, a company that provides technical support to residential customers. </li></ul><ul><li>Tectotal is present in more than 350 municipalities in Brazil, and has offices in Peru, the company estimates yearly revenue of R$ 15.0 million by the end of 2008. </li></ul>11 <ul><li>IMUSICA - Management and Distribution of Digital Media – % IDNT: 91.0% </li></ul><ul><li>Reached the mark of 2.0 million licensed music numbers for sale via web. </li></ul><ul><li>Through Coolnex, iMusica entered into a partnership agreement with Wal-Mart, which created the Download Center. </li></ul><ul><li>iMusica distributed 1.0 million mobile music downloads in 6 months of operations. </li></ul><ul><li>iMusica, it’s the official content aggregator for the music stores of all the Brazilian operators. </li></ul>
  12. 12. SUBSEQUENT EVENTS 12 Conclusion of Ideiasnet’s special auction of fractional shares On July 8, 2008, Ideiasnet successfully concluded the capital increase of R$ 100.5 million. Interest increase in NetMovies In July 2008, Ideiasnet, through IdeiasVentures, raised its stake in NetMovies from 35.0% to 37.9%. Bolsa de Mulher consolidates its leadership with acquisitions In July 2008, Bolsa de Mulher acquired the portals Estrela Guia, Feminice and Bem Leve. The company now has 5.7 million unique users per month, which is approximately 28.0% market share of internet women users in Brazil. Recovery of profitability at Softcorp Ideiasnet, aware of the need to recover profitability, improve margins and continue the accelerated growth of Softcorp, implemented a management restructuring in July 2008. Together with Deal Maker, a business and management consultancy, Ideiasnet began an action plan to recover profitability to the desired levels. Measures are being implemented to generate impressive results in the short, medium and long term.
  13. 13. IDEIASNET STOCK 13 IDNT3 Daily Average Volume of Transactions (in R$ million) During the 2Q08, Ideiasnet shares (IDNT3) registered a financial volume of R$ 294,9 millions at the Bovespa. Average daily volume of transactions in 1H08 was approximately R$ 4.3 millions.
  14. 14. In 2Q08, Ideiasnet invested R$ 17,1 millions in its companies: INVESTMENTS OF THE COMPANY 14 At the end of the 2Q08, Ideiasnet’s net debt in proportion to its stake in the investee companies was R$ 19,6 millions, a reduction compared to the R$ 71.1 millions at the end of 1Q08, as a result of increase of cash and cash equivalents. NET DEBIT 17.4% 2,980 9 companies Other Companies 5.8% 990 iMusica IdeiasVentures 76.8% 13,122 Officer E-Commerce (%) Amount Company Sector Capital Transfer (R$ thousand)
  15. 15. 15 INCOME STATEMENT (R$ thousands)
  16. 16. DISCLAIMER 16 For additional information, please contact our IR team: Rodin Spielmann CFO and Investor Relations Officer [email_address] This presentation may contain forward-looking statements concerning future trends and results. These projections are subject to risks and uncertainties and future results may differ materially from such forward-looking statements. Many of these risks refer to factors that are beyond Ideiasnet’s control or ability to anticipate, including market conditions, currency fluctuations, the behavior of competitors, the regulatory environment, the company’s ability to continue raising funds and changes in the social and political context in which Ideiasnet operates or in economic trends or conditions, including inflation and changes in consumer confidence levels, on a global, national or regional scale. Readers are hereby advised not to rely only on these trends and projections, nor is Ideiasnet obliged to publish any changes to these trends or projections to reflect subsequent events or circumstances.