2. Business segments
Healthcare Administration Services Dental HMO
Assistance Services
Ranking: #1 Ranking: #4
Ranking: #1
Number of lives: 1.38 million Number of lives: 751 thousand
Number of items: 21.3 million
No underwriting risk. Fee business Underwriting of frequency risk
only. Underwriting of frequency risk
Shared structure
Network management – Contact Center – Claims processing
2
3. Recent events
ACQUISITION DENTAL – Today, November 13, 2008, Tempo announces an
acquisition of 55% stake of Presdental Assistência Odontológica Empresarial S.A.
(Presdental), a dental plan company offering services to approximately 35 thousand
beneficiaries. The acquisition of 6% is still subject to ANS approval (Brazilian Health
Regulatory Agency).
ACQUISITION HEALTH – On 08/31/2008, Tempo acquired 100% stake of Multicare
Consultoria e Administração de Recursos em Saúde (“Multicare”), with a total of
approximately 15 thousand lives. The acquisition of 51% is still subject to ANS
approval. Multicare provides health services to self-insured companies.
STOCK BUYBACK PROGRAM - Tempo announced that its Board of Directors approved
on 11/13/08 a Buyback program of common shares. The maximum number of
common shares on this Buyback program is of 8,276,702 and will last for 365 days.
3
5. Tempo - Consolidaded
Net Revenue - Tempo (R$MM) EBITDA - Tempo ($RMM) Margem EBITDA - Tempo ($RMM)
189,8 9,9%
18,8
142,4 9,3%
13,2
3Q07A 3Q08A
3T07A EBITDA
3T08A 3T07A 3T08A
Net Revenue
Margem EBITDA
NET REVENUES EBITDA EBITDA Margin
Net Revenue grew 33.3% in 3Q08 Economies of scale and synergies
versus the same period of the continue to boost margins M & A Transactions during 08 and
previous year, reaching a total of R$ synergies
189.8 million.
5
6. Health segment
Net Revenue (in R$MM) General and Administrative Expenses (in R$MM) Adjusted EBITDA (in R$MM)
14.9%
16.1% 5.4%
3.6%
112,0
78,2 16,7
12,6 6,1
2,8
3Q07A 3Q08A 3Q07A 3Q08A
Net Revenue General and Administrative Expenses 3Q07A 3Q08A
REVENUES SG&A EBITDA
Revenue growth driven by lives Health segment accumulated a EBITDA powered by growth and
increase and Home Care acquisition. total of R$ 16.7 MM in SG&A M&A
Growth for 3Q08 came to R$ expenses during the 3Q08, which
33.8MM was R$ 4,1 million above 3Q07.
Despite the increase in
expenses, Health segment growth in
this period generated economies of
scale, improving the business margin
6
7. Dental segment: 2008 pro forma results
Net Revenue (in R$MM) Cost of Rendered Services (in R$MM) EBITDA (in R$MM)
21,8%
50.2%
43.1%
20,4%
24,0 10,8
5,2
2,7
5,4
1,1
3Q07A 3Q08A 3Q07A 3Q08A
3Q07A 3Q08A
REVENUES LOSS RATIO EBITDA
Strong top line growth powered by Significant improvement in loss ratio Continues EBITDA margin expansion
M&A and solid organic growth
All figures in this slide take into consideration the acquisitions made in 2007 and consolidated into the Company's financials starting
January 1st, 2008 even though they were waiting for approval by ANS.
7
9. Assistance Services segment
Net Revenue (in R$MM) Loss Ratio - Assistance (%)
53,5%
52,1%
50,4%
49,7%
62,4 50,4%
47,1%
58,8
45,9%
3Q07A 3Q08A
Net Revenue 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
2007 2008
REVENUE LOSS RATIO CURVE
In 3Q08 the Net Revenues for the Part of this growth refers to the
Assistance Segment reached R$ 62,4 increase in the frequency of
million, which represents a 6,2 % utilization that the company
growth compared to 3Q07. The experienced.
growth in net revenue occurred
essentially due to the increase in the Additionally, in 2008, USS offered
number of covered items, mainly in assistances of greater
personal assistance product, which complexity, which consequently
has a lower average ticket than USS have a higher average cost
average.
9
10. Assistance Services segment
General and Administrative Expenses (in R$MM) EBITDA (in R$MM)
33.0%
25.4% 1,6%
19,4
9,3 9,4
15,9
3Q07A 3Q08A
3Q07A 3Q08A
General and Administrative Expenses
SG&A and EBITDA
Economies of scale and synergies sustaining EBITDA expansion
10
11. Asset Light Operation
Capex (R$ MM) YTD/08
Software 2,9
IT Equipments 2,0
Buildings 0,0
Furniture &
Equipment 0,0
Other 1,6
Total 7,3
Capex vs EBITDA (in R$MM)
14%
11% 9%
8%
EBITDA
51,1 CAPEX
55,0
37,6 %
30,2
2,5 4,0 5,1 7,3
2005 2006 2007 YTD/08
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