Conference Call Presentation 4Q09

Tempo Assist Tempo Assist

4Q09 Earnings Release

• The year of 2009 was important for the Company with investments in systems

(proprietary dental platform), noticeable development in processes (specially to

grant integration of the acquired companies in order to optimize synergies), strategic

planning and team reinforcement (new management);

• SAP Go live on January, 2010. Health and Assistance segments are implemented in

Operating Highlights

• SAP Go live on January, 2010. Health and Assistance segments are implemented in

SAP. Dental segment will be implemented during the first half of the year;

• New brand in 2010: Tempo Participações is now Tempo Assist;

• ANS approval of the Unibanco Saúde acquisition. The agreement was made in

2009. With the approval, the insurance company results will be incorporated into

Tempo’s from the second quarter 2010 onwards.

Market Segments and its

Perspectives

Dental Plans Health Management

Ranking: #11.58 million of livesMarket: B2B; insurances and HMO’s public entities and

Ranking: #3854k livesMarket: B2B and B2B2C;Clients: corporate,

Health Insurance

Ranking: n/a70klivesMarket: B2B;small to medium size corporate clients

Assistances 24hRanking: #115 millions itemsMercado: B2B and B2B2C; insurances

Specialized Assistances

public entities and corporate clients

Clients: corporate, affinity channels

AffinityChannels Stop Loss SME

corporate clients

Promising Perspectives

B2B2C; insurances

End users

Tempo Consolidated

4

� Health Segment: 15% growth in beneficiaries, reaching a total of 1.6 million lives, and strong expansion in homecare division;

� Dental Segment: growth driven by the annualization of past acquisitions and establishment of new partnerships to distribute dental insurance;

� Assistances Segment: added Itaú-Unibanco’s personal & residence assistance account, a large number of covered items;

SG&A (BU’s) – R$ Million

166,2

-6,1

-16,5

4,8

-0,7

29,4177,0

+2%

31,9

non

recurring39,5

5

2008 BUs SG&A Personnel G&A Sales Taxes and fees Others 2009 BUs SG&A

+2%

134,3 recurring

SG&A

137,5

SG&A (Holding)

10,6

11,0

-0,01

0,2

-3,928,9

non

recurring2,1

6

11,1

2008 Holding SG&A Personnel G&A Marketing Taxes and fees Other 2009 Holding SG&A

recurring

SG&A

+141% 26,8

Recurring Operating Result

41%43%38%34%

2008 2009

7

41%

16%

43%

29%

34%

AssistanceDentalHealth

R$Million

Net Revenues

Cost of Rendered Services

Gross Profit

Gross Margin (%)

Selling, General and Administrative Expenses

Operating Results

(+)Non recurring Adjusts

R$Million

Net Revenues


Gross Profit

Gross Margin (%)


Operating Results


2008 2009 Var.%

425.3 448.5 5.5%

(332.7) (353.2) -6.2%

92.6 95.3 2.9%

21.8% 21.3% - 0.5 p.p.

(77.8) (86.4) -11.0%

14.8 8.9 -39.8%

(16.9) (25.1) -48.3%

2008 2009 Var.%

425.3 448.5 5.5%

(332.7) (353.2) -6.2%

92.6 95.3 2.9%

21.8% 21.3% - 0.5 p.p.

(77.8) (86.4) -11.0%

14.8 8.9 -39.8%

(16.9) (25.1) -48.3%

Press Release 4T09 8

�Beneficiaries: 14.6% growth when comparing with same period in 2008.

�General and Administrative Expenses: impacted due to the allowance for doubtful accounts of R$ 22.7millions;

� Recurring Operating Result: 7.2% growth when comparing with the previous year.


Recurring Operating Results

Operating Margin (%)




(16.9) (25.1) -48.3%

31.7 34.0 7.2%

7.5% 7.6% 0.1 p.p.

(16.9) (25.1) -48.3%

31.7 34.0 7.2%

7.5% 7.6% 0.1 p.p.

Beneficiaries (million) Net Revenues (R$ million)

4Q08 1Q09 2Q09 3Q09 4Q09

1.38 1.39 1.38 1.341.58

14.6%

2008 2009

448.5425.3

5.5%

9

Cost of Services Rendered (R$ million) andLoss Ratio (%)

Recurring Operating Results (R$ million) and

Margin (%)

4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009

2008 2009

6.2%

332.7353.2

2008 2009

7.2%

7.5%7.6%

31.7 34.0

R$Million

Net Revenues


Loss Ratio

Gross Profit

Gross Margin (%)


Operating Results

R$Million

Net Revenues


Loss Ratio

Gross Profit

Gross Margin (%)


Operating Results

2008 2009 Var.%

56.1 99.7 77.8%

(27.4) (45.1) -64.5%

47% 44% -3.4 p.p.

28.6 54.6 90.7%

51.1% 54.8% 3.7 p.p.

(20.9) (30.9) -47.5%

7.7 23.7 208.0%

2008 2009 Var.%

56.1 99.7 77.8%

(27.4) (45.1) -64.5%

47% 44% -3.4 p.p.

28.6 54.6 90.7%

51.1% 54.8% 3.7 p.p.

(20.9) (30.9) -47.5%

7.7 23.7 208.0%

�Beneficiaries: 2% growth in the total numbers of lives;

�Loss ratio: Loss ratio in 2009 decreased 4.7 p.p. when compared to 2008, ending 2009 with 44%;

� Recurring operating result:112.9% growth when comparing to the previous year, reaching 26 millions.

Operating Results




Operating Results




7.7 23.7 208.0%

(4.5) (2.3) 0.0%

12.2 26.0 112.9%

21.8% 26.1% 4.3 p.p.

7.7 23.7 208.0%

(4.5) (2.3) 0.0%

12.2 26.0 112.9%

21.8% 26.1% 4.3 p.p.

Beneficiaries (‘000) Net Revenues (R$ million)

833 849 879851 854

2.6% 77.8%

56.1

99.7

11



Margin (%)

4Q08 1Q09 2Q09 3Q09 4Q092008 2009

2008 2009

64.5%

47%44%

27.445.1

2008 2009

64.5%

47%44%

27.445.1

R$Million

Net Revenues


Loss Ratio

Gross Profit

Gross Margin (%)


Operating Results


R$Million

Net Revenues


Loss Ratio

Gross Profit

Gross Margin (%)


Operating Results


2008 2009 Var.%

238.2 190.8 -19.9%

(148.2) (112.8) 23.8%

55.9% 53.3% - 2.6 p.p.

90.0 78.0 -13.4%

38% 41% 3.1 p.p.

(67.4) (59.7) 11.4%

22.6 18.2 -19.3%

(10.5) (12.2) -16.2%

2008 2009 Var.%

238.2 190.8 -19.9%

(148.2) (112.8) 23.8%

55.9% 53.3% - 2.6 p.p.

90.0 78.0 -13.4%

38% 41% 3.1 p.p.

(67.4) (59.7) 11.4%

22.6 18.2 -19.3%

(10.5) (12.2) -16.2%

�Insured Items: 15 million items, representing a 9.6% reduction year over year due to a loss of an importantclient at the end of 2008.

�Loss Ratio: The loss ratio presented a 3.2pp reduction year on year, reaching 53.3% in 2009;

�General and Administrative Expenses: 11.4% reduction when comparing to 2008. impacted due to theallowance for doubtful accounts of R$ 3.5 millions;

� Recurring Operating Result: the revenues reduction impacted the BUs operating result, which posted a8% reduction, however there was an increase in operating margin of 2.1pp.





33.1 30.4 -8.0%

13.9% 15.9% 2.1 p.p.

33.1 30.4 -8.0%

13.9% 15.9% 2.1 p.p.

Insured Items (in millions) Net Revenues (R$ million)

million 4Q08 1Q09 2Q09 3Q09 4Q09

Itens 16.55 12.17 12.99 13.78 15.00

13%

21%65%

2008 2009

238.2190.8

19.9%

13



Margin (%)

2008 2009

2008 2009

148.2 112.8

55.9%

53.3%

-23.8

2008 2009

33.1 30.4

13.9%15.9%

-8.0%

Capex

Capex (R$ million) 1Q09 2Q09 3Q09 4Q09 2009

Software 1.6 2.3 1.1 2.6 7.7

IT Equipments 0.2 0.2 0.6 1.2 2.2

Buildings - 0.0 0.2 0.5 0.7

Furniture & Equipment - - 0.0 0.1 0.1

Other - 0.0 0.5 0 0.5

Total 1.8 2.6 2.4 4.4 11.2

Capex (R$ million) 1Q09 2Q09 3Q09 4Q09 2009

Software 1.6 2.3 1.1 2.6 7.7

IT Equipments 0.2 0.2 0.6 1.2 2.2

Buildings - 0.0 0.2 0.5 0.7

Furniture & Equipment - - 0.0 0.1 0.1

Other - 0.0 0.5 0 0.5

Total 1.8 2.6 2.4 4.4 11.2

� In 2009, the company invested a total amount of R$ 11.2 million, mainly directed tothe development of IT solutions (software), specially in the implementation of SAP andthe development of the operational platform of the dental plans segment (OdontoUtilis).

New Management

Since April, 2009

BUs

Corporate Structure

Since IPO Since December, 2009 Since IPO Since June, 2009

Since February, 2010Since July, 2009Since July, 2009Since November, 2009

Conference Call Presentation 4Q09

Documents

Transcript of Conference Call Presentation 4Q09