earnings release 4q06 presentation
TRANSCRIPT
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4Q06 Earnings Results
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HIGHLIGHTS FOR THE PERIOD
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– Opening of the new Distribution Center in Pernambuco– R$ 570.0 million market in Pernambuco (PE) and R$ 212.0 million in Paraíba(PB) will be supported by Profarma
– R$528.6 million Gross Revenues, up 17.3% in comparison with 4Q05
– Adjusted EBITDA registered 3.2% increase related to 4Q05, reachingR$ 19.4 million on 4Q06
_ R$ 12.7 million Net Income on 4Q06, 52.5% increase in comparison withwith 4Q05
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1,442.9
1,725.2
1,967.7
2004 2005 2006
450.8 437.9471.8
529.4 528.6
4Q05 1Q06 2Q06 3Q06 4Q06
Em R$ MM
17.3%
Gross Revenue Evolution
36.4%
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Gross Revenue Breakdown
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R$ thousands 4Q05 4Q06 Variation % 2005 2006 Variation %Branded 312.0 347.8 11.4% 1,183.9 1,332.4 12.5%Generics 28.0 36.5 30.7% 103.1 112.6 9.2%OTC 77.2 96.1 24.5% 306.6 349.5 14.0%Health and Beauty Products 27.2 36.4 33.8% 98.7 132.1 33.8%Others 6.2 11.6 87.1% 31.8 39.8 25.1%Services Rendered 0.3 0.3 3.4% 1.1 1.3 25.0%Total 450.8 528.6 17.2% 1,725.2 1,967.7 14.1%
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8.4
9.3
9.6 9.6
2003 2004 2005 2006
Market Share (%)
Source: IMS
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Adjusted EBITDA and Adjusted EBITDA Margin
In R$ MM and as a % Net Revenues
18.8
12.7
16.819.1 19.4
4.7%
3.3%4.0% 4.1% 4.2%
4Q05 1Q06 2Q06 3Q06 4Q06
35.7
47.1
61.668.1
3.9%4.1%3.7%3.6%
2003 2004 2005 2006
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16.321.6
(3.6)
In R$ MM
Net Income
Adjusted Net Income
2005 20064Q05 4Q06
32.5%
53.0%
Net Income
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8.312.7
(12.5)
2,1%
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ROE – Return on Equity
38.2%38.4%
36.5%
2004 2005 2006*
* IPO Expenses Ajusted
ROE = (Net Income + Tax Incentives) / Shareholders Equity (period beginning)
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Operating Expenses
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5.86% 6.38% 5.86%
4Q05 3Q06 4Q06
7.11% 6.16%
2005 2006
TOTAL OPERATING EXPENSES
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Cash Flow
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R$ Thousands 4Q05 4Q06 2005 2006
Cash Flow (used in)/provided by Operating Activities 13.4 (14.8) (15.6) (98.5) Internal Cash Generation 12.4 18.5 31.1 37.7 Operating Assets Variation 1.0 (33.3) (46.7) (136.2)
Cash Flow (used in)/provided by Investing Activities 0.3 (2.2) (2.0) (4.4)
Cash Flow (used in)/provided by Financing Activities (19.5) 201.6 19.3 292.4
Increase (Decrease) in Cash (5.8) 184.6 1.7 189.5
Cash Flows
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Indebtedness
Net Debt (R$MM) and Net Debt / Ebitda
-64.7
50.1
82.8104.1
-1.0
1.71.81.4
2003 2004 2005 2006
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59.0
26.9
72.7
27.4
0.0
60.9
38.1
104.2
2003 2004 2005 2006
Short Term Long Term
Em R$ MM
100%
31%
69%66%
34%21%
79%
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Indebtedness Position
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Capex
1.2 0.9 1.4
3.10.5 0.91.0
1.0
0.1 0.20.1
0.7
0.3%
0.2%0.2% 0.2%
2003 2004 2005 2006
Inst, Maq and Equip IT Others % Net Revenue
1,9 2,02,5
4,7
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Operanting Indicators
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Service Level(units served / units requested)
89.9%88.7%
87.7%86.6%
92.9%90.8%
2003 2004 2005 2006 9M06 4Q06
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Logistics E.P.M.
(Errors per Million)
Logístics – Productivity(units shipped / worked hours)
16
231202
250
2004 2005 2006
89.4 89.8 89.6
2004 2005 2006
Operanting Indicators
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35.242.1
47.9
28.8
2003 2004 2005 2006
180.4215.7
157.4
245,9
2003 2004 2005 2006
Sale per Square Meter Average Sale per DC
. In R$ m (Gross Revenue) .In R$ MM (Gross Revenue)
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Operanting Indicators
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Average Invoice Sale Through eletronic Orders
. R$ % on total sale
40.0%43,8%
35.0%
2004 2005 2006
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802.9 782.3857.2
2004 2005 2006
Operanting Indicators
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Gross Revenue per Employee Ebitda per Employee
In R$ MM In R$ MM
28,832,0
44,549,1
2003 2004 2005 2006
889,1980,9
1246,6
1419,7
2003 2004 2005 2006
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Operanting Indicators
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Capital Markets
110,9
114,6
150,8
9599
103107111115119123127131135139143147151155159163167171175179
25-out 1-nov 9-nov 17-nov 27-nov 4-dez 11-dez 18-dez 26-dez 4-jan 11-jan 18-jan 26-jan 2-fev 9-fev 16-fev 27-fev
Ibovespa IGC Profarma
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Max FischerCFO and IRO
Ana Paula RibeiroIR Coordinator
phone.: 55 (21) 4009 0276E-mail: [email protected]
www.profarma.com.br/ri
IR Contact: