2Q07 Results Presentation
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Transcript of 2Q07 Results Presentation
2Q07 ResultsPresentation
2
Agenda
• Company’s Profile
• Our Activities
• 2Q07 Highlights
• Financial Results
• 2007 Guidance
3
Company’s Profile
Strategic Location39 branches in Brazil
Close to the main automakers andports in Brazil
Nearly 1,245 thousand m2 yardsavailable
Operation Area
Brazil, Argentina, Uruguay and Paraguay
4 countries which represent 90.8% of the MercosurPIB according to The World Factbook (CIA).
4
Our Activities
LogisticsLogistics SolutionSolution = to = to buildbuild andand managemanage thethe processprocess andand thethe informationinformation enviromentenviroment
TransportationTransportation WharehousingWharehousing InventoryInventoryManagementManagement
• Collection• Milk run• Checking• Consolidation• Scheduling• Shipment• Transportation• Transfer• Delivery• Tracking• Others
• Space: vertical / horizontal• Environmental Conditioning:
temperature, humidity, dust• Safety• Security• Access• Others
• Order Process: picking, invoice• Physical Material Control• Replanning and follow-up• Reverse Logistics (returned
assets)• Selection• Packaging• PDI• Automobile
Auction• Dry Port
•• ~2,600 ~2,600 equipmentequipment•• 730,000 730,000 vehiclesvehicles
•• 1,245,000 1,245,000 mm²² sqmsqm total total areaarea
•• 300,000 300,000 mm²² sqmsqm bondedbonded
•• 1,000,000 1,000,000 vehiclesvehicleshandledhandled
•• 2,374 2,374 employeesemployees
AutomotiveAutomotive DivisionDivision
VehiclesVehicles
Auto Auto partsparts
ConsumerConsumer ProductsProducts
FuelFuel PulpPulp andand PaperPaper TelecomTelecom andand HomeHome AppliancesAppliances
OrangeOrange JuiceJuiceChemicalsChemicals
OtherOther SectorsSectors DivisionDivision
5
2Q072Q07
ResultsResults
Results from 2006, 1H07 and 1Q07, unless otherwise indicated, are presented in a pro forma basis, including Tegma, Bonifácio Logística e Transportes Ltda, Coimex Logística Integrada S.A. and P.D.I. Comercio Indústria e Serviços Ltda as if the acquisitions of Boni, C.L.I, and P.D.I had taken place on January 1, 2006.
6
2Q07 Financial Highlights
Financial Highlights
• Adjusted EBITDAR moved up by 45.0% in the 2Q07, with adjusted EBITDAR marginclimbing from 14.7% in the 2Q07 to 16.3% in the 2Q07.
• Net revenue totaled R$173.1 million in the 2Q07, up by 31.5% on the 2Q06.
• Net income excluding non-recurring expenses rose 26.1%, from R$7.4 million in the2Q06 to R$9.3 million in the 2Q07.
• Gross revenue from new operations stood at R$19 million in the 2Q07, revenuesoriginated from new contracts and operations initiated in 2006.
7
2Q07 Strategic Highlights
Strategic Highlights
• On April 21, 2007, Tegma acquired, directly and indirectly, 100% of shares issued by Boni, which provides bitrains (7 axles) and rodotrains (9 axles) for cargo transportation in Brazil, expanding the cargo transportation per turn.
• On April 27, 2007, Tegma acquired, directly and indirectly, 100% of shares issued byCLI, a logistics provider of Grupo Coimex with 14 years of operation and administratorof one of the largest and most modern dry ports in Brazil, located in Cariacica, in thestate of Espírito Santo.
•On April 27, 2007, Tegma acquired, directly and indirectly, 100% of shares issued byP.D.I. Ltda, which provides PDI products, accessories installation and small repairsinbrand new imported vehicles, storaged by CLI in the dried port of Vitória I.
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Automotive Division
105.2
142.0
17.5 22.8
NET REVENUE Adjusted EBITDAR
2Q06 2Q07
35.0%
30.3%
Net Revenue grew by 35.0% year-on-year:
• the volume of transportedautomobiles increased by 17.0%;
• increase in the average km by11.9%;
• new autopart transportationoperation which generatedR$10 million in gross revenues; and
• additional revenue of R$1.6 million from the new AutomobileAuction operation.
Adjusted EBITDAR grew by 30.3% year-on-year due to revenues from new operations and the increase in the amount of transported vehicles.
9
Other Sectors Division
Adjusted EBITDAR grew by 181.0% year-on-year due to:
• EBITDAR generated by new operations;
• administrative expenses reduction; and
• productivity gain in storage operations and management third-party inventory.
26.5
31.0
1.9
5.3
NET REVENUE Adjusted EBITDAR
2Q06 2Q07
17.3%
181.0%
Net Revenue grew by 17.3% in the2Q07 year-on-year due to:
• new contract revenue with VCP in the Pulp and Paper sector; and
• market and market-share growthin the Orange Juice sector.
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Consolidated Gross Operating Revenue bySector
76%
5%
3%
0%
14%
2%
75%
6%1%
16%
2%
2Q06 2Q07
Transportation - Automotive Transportation - HPC Transportation – Pulp and Paper
Transportation – Orange Juice Transportation - Others Logistics Services and Others
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Consolidated Net Revenues
Consolidated Net Revenue grew by 31.5% year-on-year. The Automotive Divisionincreased by 35.0% and the Other Sectors Division, 17.3%.
310.1
374.8
554.6
131.7
173.1
246.4
320.8
2004 2005 2006 2Q06 2Q07 1H06 1H07
31.5%
30.2%
12
Consolidated Adjusted EBITDAR
Adjusted EBITDAR, grew by 45.0% year-on-year. The Automotive Division increased by30.3% and the Other Sectors Division, 181.0%.
53.159.2
89.6
19.4
28.1
35.2
50.7
2004 2005 2006 2Q06 2Q07 1H06 1H07
45.0%
43.8%
13
Consolidated Net Income
Net Income grew 26.1% in the 2Q07 compared to the 2Q06, representing 5.4% of Net Revenue. Considering non-recurring expenses in the period, our net loss would amountto R$1.1 million.
30.733.6
27.4
7.49.3
13.4
17.1
2004 2005 2006 2Q06 2Q07 1H06 1H07
27.7%
26.1%
14
Cash Balance and Indebtness
Indebtness / Adjusted EBITDAR (12 months)
Note: Amounts in Dec-06 and Mar-07 not include Boni, CLI and P.D.I.
14.6
10.4
12.1
Cash Balance
Dec-06 Mar-07 Jun-07
0.6 0.5
71.5
INDEBTNESS (includes Leasing)
Dec-06 Mar-07 Jun-07
0.01x 0.01x
0.64x
15
2007 Guidance
Minimum Maximum
720Net Revenue (R$ million) 680
Adjusted EBITDAR Margin 16.5% 18.5%
65CAPEX (R$ million) 55
16
Disclaimer
The forward-looking statements contained in this report are subject to risks and uncertainties. They are based on the Management’s beliefs and assumptions and information currently available to the Company. Such statements include information about our current plans, beliefs or expectations, as well as those of the Board of Directors and Board of Executive Officers.
These reservations concerning forward-looking statements also apply to information on our possible or presumed operating results, as well as declarations preceded by, including or followed by such words as "believe", "may", "will", "continue", "expect", "foresee", "intend", "plan", "estimate" and other similar expressions.
Forward-looking statements do not constitute a guarantee of performance. Since they refer to the future, they depend on circumstances that may or may not occur and are therefore subject to risks, uncertainties and assumptions. Future results and the creation of value for shareholders may differ substantially from those expressed or suggested by the forward-looking statements. These results and values depend on many factors beyond TEGMA’s control or expectations.