DASA DAY 2012 (english version)

7/30/2019 DASA DAY 2012 (english version)

http://slidepdf.com/reader/full/dasa-day-2012-english-version 1/120

1/1201/22



2/1202/22

DIAGNÓSTICOS DA AMÉRICA S.A.



3/120

DISCLAIMER

This document contains forward looking

statements that can be identified by words like“hope,” “plan,” “expect,” “believe,” “seek,”

“estimate” and similar words. The information inthis presentation regarding forward lookingstatements of the Company, including businessprospects, and operating, financial, and growth

projections are only predictions based onmanagement expectations regarding futureperformance. These estimates are highlydependant on the performance of the Brazilianeconomy, industry and international marketcondiitions. Therefore, they are subject to

change.



4/120

AGENDA

1

2

3

45

67

Welcome: CEO

Market Intelligence

Business

Radiology and Graphic Methods

Operations

Financial

Q&A



5/120

DICKSON TANGERINO

CEO



6/120

4 MARKETS• PRIVATE CLINICS• LAB-TO-LAB• PRIVATE HOSPITALS• PUBLIC – CLINCS AND HOSPITALS

19,000 EMPLOYEES

2,000 DOCTORS

Latin America’s Largest Diagnostics Company

DASA

ONLY HEALTH COMPANY

INCLUDED IN THE IBOVESPA


http://slidepdf.com/reader/full/dasa-day-2012-english-version 7/1207/120

BUSINESS RELEVANCE - REVENUE

7

66%

34%

CLINICALANALYSIS

IMAGE

SERVICE MIX

GROSS OPERATING REVENUE R$2.4 BN IN 2011



MARKETS PUBLIC

LAB-TO-LAB

PRIVATE CLINICS

10%

9%

7%

74%

PRIV.HOSP.

BUSINESS RELEVANCE - REVENUE



DOCTORS

EMPLOYEES

REVENUE INCREASE

REDUCE WASTE

STRATEGIC PILLARS

9/120



10/120

PRIORITIES FOR 2013

MAXIMIZE RETURN IN EXISTING ASSETS1

LEVERAGE REVENUE2

REDUCE COSTS AND EXPENSES3

IMPROVE OPERATIONAL QUALITY4

5

10/120

PEOPLE - MERITOCRACY



11/120

RAFAEL LUCCHESI

MARKET

INTELLIGENCE



12/120

PRIVATE MARKET PROJECTIONS

12/120



13/120

ECONOMIC PROJECTIONS

Correlation Economic Indicators x Supplementary Health Market

5.2%

-0.3%

7.5%

2.7%

1.0%

3.5%

Correlation = 93%GDP x BENEFICIARIES

2008 2009 2010 2011 2012* 2013*

Variation in no.of Beneficiaries

GDPVariation

5.1%

3.4%

7.1%

5.1%

3.7%4.2%

2012 and 2013Projections

*



14/120

0.6%

5.1%

3.4%

1.5%

7.1%

0.6%

5.1%

0.3%

3.7%

0.1%

4.2%

0%

Variation in no.of Beneficiaries

Variation inEmployment

2012 and 2013Projections

Correlation = 97%EMPLOYMENT x BENEFICIARIES

2008 2009 2010 2011 2012* 2013*

*

ECONOMIC PROJECTIONS

Correlation Economic Indicators x Supplementary Health Market



15/120

PROJECTED BENEFICIARY GROWTH

CAGR 4.8%

2008 2009 2010 2011 2012* 2013*2007

Beneficiariesin Millions

38.9 40.9

42.3 45.3 47.6 49.4 51.4

% Beneficiariesby contract type

*Projections

63%20%

15%

2%Coletivo Empresarial

Individual

Coletivo por Adesão

Não informado

Collective Enterprise

Individual

Collective for membership

Uninformed



16/120

OPERATOR REVENUE GROWTH

CAGR 12.1%

2008 2009 2010 2011 2012* 2013*2007

Operator RevenueR$ Billion

51.1 59.564.5 73.0

82.491.3 101.4

*Projections



17/120

OPERATOR LOSS RATIO

Loss Ratio(12-month average)

80.6 % 80.4 %

83.0%

81.2%82.4%

82.2% 82.0%

*Projections

2008 2009 2010 2011 2012* 2013*2007



18/120

CAGR 12.4%

Operator Assistance CostR$ Billion

41.247.8 53.5

59.267.9

75.083.2

OPERATOR LOSS RATIO

2008 2009 2010 2011 2012* 2013*2007

*Projections



19/120

OPERATOR COST

2008 2009 2010 2011 2012* 2013*2007

20.1% 20.4%20.8% 20.9%

21.4% 21.6%21.8%

*Projections

% Service for Diagnosis share

in Assistance Expenses



20/120

2008 2009 2010 2011 2012* 2013*2007

8.3 9.811.1 12.4 14.3 16.0 17.9

OBS: Does not include revenue with private patients

Private Diagnostics Market Revenue

*Projections

OPERATOR COST WITH SAD

CAGR 13.7%

Service for DiagnosisCost - OperatorsR$ Billion



21/120

MARKET BY REGION

21/120



22/120

SE65%

S14%

NE13%

CO5%

N3%

BENEFICIARY AND COVERAGE RATE BREAKDOWN

Beneficiaries Brazil – 48.7 MM (Jun/12)

10.8% 11.5% 17.4%

23.9%

38.3%

25.0%

11.2% 12.2% 18.6%

23.9%

38.8%

25.5%

Norte Nordeste Centro-Oeste Sul Sudeste Brasil

Coverage Rate

dez/11 jun/12North Northeast Northeast South Southeast Brazil

dec/11

MW



23/120

BENEFICIARY BREAKDOWN BY REGION

PA44%

AM

32%

RO11%

TO5%

AP4%

AC2%

RR 2%

North – 1.7 Mi

BA24%

PE23%CE

17%

RN8%

MA7%

AL6%

PB6%

SE5%

PI4%

Northeast – 6.1 Mi

GO38%

DF28%

MT17%

MS17%

Mid-West - 2.4 Mi

SP60%

RJ19%

MG

17%

ES4%

Southeast – 30.8 Mi

RS39%

PR 38%

SC

23%

South – 6.6 Mi



24/120

0.50.9 2.0 1.9

9.0

0.61.0 2.2 2.1

10.0

0.7 1.12.5 2.4

11.1

N CO NE SUL SE

2011 2012 2013

MW S

PROJECTED SERVICE FOR DIAGNOSIS COST GROWTH BY REGION

CAGR 17.7%

CAGR 13.5%

CAGR 11.8%

CAGR 13.8%

CAGR 11.1%Private Market Growth

R$ Billion



25/120

EXAMPLE OF GEO-MARKET ANALYSIS



26/120

RADIUS AND REGION INFORMATION



27/120

PEDESTRIAN FLOWS

Legend

Very Low

Low

Average

No Information

High

Very High



28/120

TRAFFIC FLOWS

Legend

Very Low

Low

Average

Very High

Major Avenue



29/120

AVERAGE INCOME

Name: Average Income [AI-SP]

0 to 484

484 to 726

726 to 1194

1194 to 2012

2012 to 3479

3479 to 6563

6563 to 9733

9733 to 20000

20000 to 999999



30/120

% BENEFICIARIES – CLASS A

Name: % Benef. Class A [RADIUS]

0 to 37

37 to 55

55 to 67

67 to 78

78 to 100



31/120

% BENEFICIARIES – CLASS B

Name: % Benef. Class B[RADIUS]

0 to 15

15 to 22

22 to 27

27 to 31

31 to 49



32/120

% BENEFICIARIES – CLASSES C and D

Name: % BeneficiariesClasses C-D [RADIUS]

0 to 7

7 to 1010 to 1616 to 3030 to 60



33/120

DASA UNITS



34/120

D

C

A

B

D

A

A

B

B

E

COMPETITOR UNITS



35/120

ANALYSIS AND DECISION MAKING

• PROFILE of regional demographics

•

COVERAGE profile of health plans• Access by PEDESTRIANS and VEHICLES

• Access by PUBLIC TRANSPORTATION

• DEMOGRAPHIC GROWTH of the region

• TRAFFIC generating HUBS

• Sugested BRAND, unit PROFILE and service MIX

• PROJECTED DEMAND for the unit

BP ELABORATION AND INVESTMENT DECISION



36/12036/19

BUSINESSDIRECTOR



37/120

PRIVATE MARKET

37/120

PRIVATE MARKET REGIONS



38/120

PRIVATE MARKET - REGIONS

PRIVATE MARKET – REGIONAL OFFICES

LAB-TO-LAB/PUBLIC/HOSPITAL

MARKETS – NATIONALMANAGEMENT

BUSINESS SÃO PAULO



39/120

BUSINESS - SÃO PAULOSEGMENT CURRENT STAGE OBJECTIVES

PREMIUM • BRAND LAUNCH•

BRAND RECOGNITION BY DOCTORS ANDPATIENTS

EXECUTIVO

• IMPROVED QUALITY OF

CUSTOMER SERVICE

• RECOGNITION BY MEDICALPROFESSIONALS

• PRODUCTIVITY

• MAXIMIZE EQUIPMENT USE

• EXPAND CLIENT BASE

• INCREASE AVERAGE TICKET

BÁSICO

• SHARP MARKET GROWTH

• INCREASED COMPETITION IN THE

SEGMENT

• MAXIMIZE EQUIPMENT USE

• CAPTURE MARKET GROWTH

BUSINESS OTHER MARKETS



40/120

REGION CURRENT STAGE OBJETICVES

RIO DE JANEIRO

• QUALITY IN SCHEDULING AND

SERVICE

• AWAITING CADE JUDGEMENT

• CONCLUDE INTERNAL PROCESS

INTEGRATION

• ADAPTATION AND REPOSITIONING OF

THE BRANDS

OTHER REGIONS

• DISSIMENATE DASA CULTURE AND

MANAGEMENT MODEL

• NEW UNITS

• STANDARDIZE PROCESSES

• MAXIMIZE ASSET USE

• SEEK NEW CLIENTS

• CAPTURE MARKET GROWTH

BUSINESS – OTHER MARKETS



41/12041/120

LAB-TO-LABMARKET

LAB TO LAB MARKET



42/120

• 2.8 MILLION tests/month

• Represents 10% of DASA’s revenue

• 600 employees involved

• B2B with 5,000 laboratories

•

Sales force with 74 consultants

DASA IS THE MARKET LEADER IN LAB-TO-LAB IN BRAZIL

LAB-TO-LAB MARKET

LAB TO LAB MARKET



43/120

5,000 LABORATORIES SERVEDNATIONWIDE

37 REGIONAL OFFICES

LAB-TO-LAB MARKET

LAB TO LAB MARKET 2012 ACHIEVEMENTS



44/120

Reformulation of the ÁLVARO SITE 1

IT investments – INTERFACE WITH CLIENT SYSTEMS

Regional BRANDS

DOCTOR’S CHANNEL

Commercial CONVENTION

Investments in PRE-ANALYSIS

SEMINARS

Investments in MARKETING

LAB-TO-LAB MARKET – 2012 ACHIEVEMENTS

2

3

45

6

8

7



45/120

HOSPITALS

45/120

HOSPITAL MARKET



46/120

4,600Private Hospitals in Brazil

HOSPITAL MARKET

OPERATION FEATURES



47/120

MEDICAL RELATIONSHIP

SEEKING PROFITABILITY

GROWTH DEPENDS ONINCREASE IN BEDSAVAILABLE

REINFORCE RELATIONSHIPWITH PAYERS

OPERATION FEATURES

HOSPITAL MARKET

OPERATION FEATURES



48/120

5 HOSPITALS 8 HOSPITALS 24 HOSPITALS

OPERATION FEATURES

Team dedicated to ACCREDITATION and

CERTIFICATION processes



49/120

PUBLIC MARKET

49/120

PUBLIC MARKET



50/120

PUBLIC MARKET

FEATURES

• 74% of Brazilians do not have health insurance

• 12% of federal income is allocated to health care

• Approximately 10% of the public market of AC and RID is

OUTSOURCED

• Contracts on a LARGE SCALE

• Difficult to PREDICT

• Very dependent on political environment

IN LINE WITH CORPORATE STRATEGY



51/120

REVENUEDIVERSIFICATION

PRESENCE IN MARKETSwith significant growthpotential

SCALE ALLOWS COST

REDUCTIONFor all markets

BARRIER FOR OTHER

PLAYERS

IN LINE WITH CORPORATE STRATEGY

OPERATION WITHEMERGING CLASSES

COMPETITIVE ADVANTAGES



52/120

QUALITY

DISTRIBUTION

VIRTUOUS CYCLE OF SCALE

DASA certifications and market recognition make

DASA a reference among public market players.

Leading regional brands, Regional MedicalManagement, and unit coverage are strong growthdrivers.

Scale of other markets allow DASA’s presence in thepublic market and gains in scale in the public markethelp reduce costs for other markets.

COMPETITIVE ADVANTAGES



53/12053/26

EMERSON LEANDRO GASPARETTODIRECTOR OF RADIOLOGY AND GRAPHIC

METHODS

MEDICAL RELATIONSHIP AT DASA



54/120

MEDICAL RELATIONSHIP AT DASA

MEDICAL EVENTS

• CONGRESSES• SYMPOSIUMS

• SCIENTIFIC DINNERS

RELATIONSHIP• SPECIAL DATES

• INOVAR MAGAZINE

• IN-HOUSE PHYSICIANS

NEWSLETTER

• SUPPORT MATERIALS FORPHYSICIAN VISIT

SÃO PAULO: MEDICAL RELATIONSHIP



55/120

v


v

v

v

v

v

v

Special Date: Easter500 physicians

Special Date: Physicians’ Birthdays 38 physicians

Scientific RelationshipInovar Saúde Magazine6,500 physicians

Special Date: Physicians’ Birthdays

69 physicians


Scientific RelationshipMD Consult230 physicians



SOGESP Congress6,000 physicians


Secretary’s Day 500 physicians

Scientific RelationshipCardiac Imaging Dinner & Lecture20 physicians

ServiceIntroduction of “Secretaries”

Program


Scientific Relationship:Head & Neck International Symposium1,000 people impacted 60 physicians

Cardiac ImagingDinner & Lecture20 physicians

Introduction: Delboni’s newfolder20,000 physicians


Scientific Relationship:Delboni International Symposium5,000 physicians impacted (750 participants)

Introduction of new Brand20,000 physicians


Christmas500 physicians


BioInforme5,000 physicians




56/120


TARGET: in-house and contracted physicians

GOAL: medical relationship through scientific content

DATE: November 10, 2012BRAND

5 rooms simultaneously

5,000 physicians impacted

479 physicians participating

Delboni International CongressDr. Emerson Gasparetto Women’s Imaging Dr. Flora FinguermanDr. Maria Cristina ChammasOncology

Dr. Carlos Bushpiguel NeuroimagingDr. Renato MendonçaCardiology

Dr. Carlos Eduardo Suaide SilvaDr. Alexandre Murad NetoDr. Marly Maria Uellendahl Lopes

Skeletal muscle imagingDr. Carlos Longo

MEDICAL RELATIONSHIP:



57/120

INOVAR SAÚDE MAGAZINE

TARGET: in-house and contracted physicians

GOAL: medical relationship through scientificcontent

Periodicity: Every four months

Number of copies: 22,500

BRAND

PREMIUM: MEDICAL RELATIONSHIP



58/120

v

PREMIUM: MEDICAL RELATIONSHIP

Relationship Action: Easter230 physicians

Dinner & Lecture on Genetics Emiliano Hotel30 physicians Coordinator: Dr. Claudia Cohn

v

International Mastology Congress

60 physicians

vRelationship dinner with orthopedists20 physicians Coordinator: Dr. Abdalla Skaf

International MRI Symposium400 physicians Coordinator: Dr. Emerson Gasparetto

Relationship dinner with neurologists20 physicians Coordinator: Dr. Nelson Fortes

Dinner & lecture on Colorectal Cancer / oncology Emiliano Hotel 30 physicians Coordinator: Dr. Mônica Freire

Secretaries’ Day / Custom-made gift100 or 150 secretaries

vPhysicians’Day230physicians

vDinner & lecture onCardio30 physicians

vChristmas230 physicians

PREMIUM: INTERNATIONAL CONGRESS



59/120

PREMIUM: INTERNATIONAL CONGRESS

TARGET: in-house physicians and prescribers

GOAL: disclose the advances in the Magnetic Resonance Imaging

field through a partnership with the Harvard UniversityAUDIENCE: 400 physicians at the Grand Hyatt Hotel

DATE: August 18, 2012

Bruce RosenHarvard

Pamela Schaefer Harvard

Stacy Smith Harvard

James Provenzale

Duke

RIO DE JANEIRO: MEDICAL RELATIONSHIP



60/120

v

RIO DE JANEIRO: MEDICAL RELATIONSHIP

v

v

v

v

v

v

Cocktail party for members of theAMRJ100 physicians

Scientific Dinner: Cardio-Genetics30 physicians

Magnetic Resonance Imaging classes: Basic Principles and Applications207 physicians

Neuroimaging Symposium99 physicians participating

Cardiac Imaging immersion meeting51 physicians participating

Sponsorship of Endocardio 2012

SOCERJ: VerticalSymposium100 physicians

SOCERJ: APPLIED PRECISION MEDICINECARDIOLOGY - Vertical Symposium50 physicians

4th International PET/CT Symposium.55 physicians

EasterGifts delivered to1,100 physicians

Scientific Dinner: Advances in thePrenatal Diagnostics of Fetal Anomalies30 physicians

Scientific Dinner: Genomic Diagnostic Approach of the GlobalDevelopmental Deficit (GDD): from the clinic to the whole exomesequencing30 physicians

Mastoid Club20 physicians

Sponsorship of the International Mastology

Symposium100 physicians

Sponsorship of the 2012 Safety Congress

Breakfast at the São Vicente ClinicSponsorship of the 5th Cardiac Radiology National Meeting250 physicians

Cardiac Imaging Symposium100 physicians

Scientific Dinner: Colorectal Cancer30 physicians

Event to celebrate Secretaries’ Day (VIPS) 200 Secretaries

Scientific Dinner: Theme to bedefined30 physicians

Hands-on Class100 physicians

AMF Physicians’ DayParty

Physicians’ Day: Dinner Dr.Romeu350 physicians

Rock In Rio Show1,100 physicians

Christmas: Delivery of chocolate Christmas trees1,100 physicians

Unimed’s year-end party, Christmas baskets, organizers

DASA’S MEDICAL REFERENCES



61/120

DASA S MEDICAL REFERENCES




62/120

• Increase of 20% in agenda availability

• Improved test QUALITY

• Improved test MIX (average ticket)

• Sense of BELONGING

• Better CONTROL of the operation

• Better CONTACT with patients and physicians

• LACK of additional COST

Medical Project at the Unit

Positive Aspects





63/120

Florianópolis: R1 to R3 residents (4 openings)

Salvador

Education and training

Current scenario: demand for radiologists is higher than supply• All stages recognized by the Brazilian Radiology School

• Admission process and remuneration organized by DASA’s IEP

Fortaleza

RJ: 120 interns (physicians)(E4 and E5)

Cuiabá

SP: 8 interns in 2012 >> 12 interns in 2013

Brasilia: Residency in ClinicalPathology (MEC)





64/120

Technical level of medical staff Current scenario: demand for radiologists is higher than supply

• Physicians with a DEGREE from theBrazilian Radiology School: US (60%)

and TC/MRI (80%)• MEDICAL REFERENCES

(Dr. Buchpiguel, Dr. Chammas,Dr. Longo, Dr. Renato)

• Two radiologists from Sao Paulotraining OVERSEAS (MSK and MI)

• New EQUIPMENT (main demand)

• REVISION of protocols and resultreporting (sampling)

• Monthly MEETINGS with medicalstaff

• WORKSHOPS on complex tests

(angioCT)• Process for the implementation of

the DASA CULTURE




65/120

The role of DASA’s medical references Sense of belonging

• MEDICAL COMMITTEE: monthly meetings to discuss

complex matters

• Meetings for RESULTS and QUALITY of each specialty

• CLOSE RELATIONSHIP with the leading physicians of regional

branches

OUR TECHNOLOGY ASSETS



66/120

NEW EQUIPMENT1 PET/CT

3 MRI 3T

14 MRI 1.5T

12 CT

50 US

R$50 million - 2012

66/120

SAO PAULO TECHNOLOGY ASSETS



67/120

New equipment performanceComputed Tomography – number of tests (base 100)

Interlagos

Santo André

Tatuapé II

Sumaré

Mooca

SBC

Penha

Lapa

Guarulhos

Tatuapé

Interlagos

Borba Gato

Jardim Sul

Ricardo Jafet

New equipment

installation

Equipmentreplacement

SAO PAULO TECHNOLOGY ASSETS



68/120

New equipment performanceMagnetic resonance – number of tests (base 100)

Guarulhos

Tatuapé II SBC

Brooklin

Darzan

Jardim SulRicardo Jafet

Tatuapé

New equipmentinstallation

Equipmentreplacement

RESEARCH AND DEVELOPMENT



69/120

• INFRASTRUCTURE and TEAM are shared in Brazil

• 3 physicists (PhD) and one biomedical engineer(MSc)

• Partnership with Universities (Harvard, UFRJ,UERJ, USP)

• Master Research Agreement with Siemens (WIP)




70/120

• Nearly 100 papers presented/year

•

Average publication of 15 national papers and 25 international papers/year

• 50% of all Brazilian papers are in the RSNA (2008-2012)

• 140 papers submitted to the RSNA (20 SP) and 40 to the AACC 2012

56 RSNA (50%)

and 33 AACC (50%)




71/120

• 50% of MASTER’s and DOCTORATE’s students at UFRJ

• Two students at SANTA CASA’s DOCTORATE – SP

• 8-10 physicians/year trained overseas (2 SP)

• 3 CLASSES AT RSNA (Pedro Daltro and Emerson Gasparetto)

• Participation in all RDI events supported by DASA

RESEARCH AND DEVELOPMENT: RADIOLOGY



72/120

RESEARCH AND DEVELOPMENT:



73/120

NEW TESTS

Increased power

to negotiatewith payers

• Breast MRI

• Arthro MRI

• Coronary CT

• PET/CT

• PET/MRI

• Fetal MRI

NEXT STEPS



74/120

The Challenge for the RID

Medical Area• REMUNERATION MODEL

•

IMPROVED RID PRODUCT MIX

• Implementation of the DASACULTURE

• REVISION of RID processes



75/120

OCTAVIO FERNANDES

VP of OPERATIONS

VP OPERATIONS



76/120

INNOVATION

MEDICAL RELATIONSHIPSREGIONAL MEDICAL MANAGEMENT

EDUCATION AND RESEARCH INSTITUTE(IEP)

CLINICAL RESEARCH LOGISTICS

PRODUCTS PathologicalAnatomy Vaccines

ClinicalAnalysis

SUSTAINABLE INNOVATIONCONCEPT AND MODEL



77/120

INNOVATION is the incorporation of knowledge

into new PRODUTCS, PROCESSES OR SERVICES thatadd value in an original and relevant manner.

MARKETNEEDS

INCORPORATIONDECISION PRODUCTION RESULTS

Early adopter

Financial viability Expectation of success

Implementation

PRODUCTIONPLANNING ANDCONTROL

Monitoring

CONCEPT AND MODEL

MODEL

PCP | ACTION FOCUS



78/120

PLANNING

• Projected DEMAND

• MASTER PLANfor Production

• Management ofproduction processALTERATIONS

• STANDARDIZATION ofmaterials and platforms:cost and programming

Supplier 1Supplier 2Supplier 3

HematologyClotting

Biochemistry

Specific Proteins

Thyroid

Fertility

Anemia

Infectious Diseases

Tumor markers

Microbiology

Urinalysis

Supplier 4Supplier 5Supplier 6

NTOsDASA

NTOCLAREA

PCP | ACTION FOCUS



79/120

19%

55%

6%

20%

Year 09

35%

40%

5%

20%

Year 10

36%

41%

3%

20%

Year 11

34%

40%

6%

20%

Year 12

C o n t r o l

Supplier 1 Supplier 2 Supplier 3 Supplier 4

Adherance to demand projections. Adherance to standardized materials plan • Participation in establishment of safety inventories• Expiration management

Productivity analyses• Platforms and automation• Input costs• Fixed costs

PCP | ACTION FOCUS



80/120

100%108%

151%

Growth

(tests)

100% 106%

108%

Productivity(tests/employee)

100%94% 99%

Unit Cost

70%

90%

110%

130%

150%

170%

Ano 09 Ano 10 Ano 11 Ano 12

122%

94%

168%

C o n t r o l

*

*YTD = SEPT/12

Adherance to demand projections. Adherance to standardized materials plan • Participation in establishment of safety inventories• Expiration management

Productivity analyses• Platforms and automation• Input costs• Fixed costs

Year 09 Year 10 Year 11 Year 12*

NET REVENUE AND CA COSTSDASA EVOLUTION



81/120

DASA EVOLUTION

63.1% 64.0% 64.6%

21.9% 20.1% 20.8%

Net Revenue from CA (% of total)

% CV NTO / NR of CA

2009 2010 2011Category Period

66.0%

19.5%

2012*

*through 3Q12

NET REVENUE AND CA COSTSDASA EVOLUTION



82/120

2Q12 3Q121Q12

2012 InflationClinical Analysis(R$ thousand)

2,562,862

1,742,051

1,967,045

Gains of R$6.3 MM from January to September/12

2010 2011 2012*

DASA EVOLUTION

63.1% 64.0% 64.6%

21.9% 20.1% 20.8%

Net Revenue from ClinicalAnalysis (% of total)

% CV NTO / NR of Clinical Analysis

2009Category Period

66.0%

19.5%

*through 3Q12

LOGISTICSDOLLAR X IMPORTS



83/120

DOLLAR X IMPORTS

2,396

1,442

1,008

1,534

1,757

815

1,250

104

Dollar Imports

JAN FEB MAR APR MAY JUN JUL AUG SEPT

9701.72

1.80

1.78 1.85

1.97

2.05 2.03 2.03 2.03

LOGISTICSDOLLAR X IMPORTS X INVENTORIES



84/120

DOLLAR X IMPORTS X INVENTORIES

54,888 50,141 45,850 40,879 39,245 38,657 36,795 34,887

Inventories

35,938

2,396

1,442

1,008

1,534

1,757

815

1,250

104

Dollar Imports

JAN FEB MAR APR MAY JUN JUL AUG SEPT

9701.72

1.801.78 1.85

1.97

2.05 2.03 2.03 2.03

NET REVENUE AND CLINICAL ANALYSISCOSTS DASA EVOLUTION



85/120

100%108%

151%Growth (tests)

100% 106%

108%


100% 94% 99%Unit Cost

70%

90%

110%

130%

150%

170%


122%

94%

2009 2010 2011 2012*

11.7% 10.9% 12.7%% CF NTO / NR of Clinical Analysis 11.2%

*through 3Q12

168%

*YTD = SET/12

*

63.1% 64.0% 64.6%

21.9% 20.1% 20.8%

Net Revenue from ClinicalAnalysis (% of total)% CV NTO / NR of ClinicalAnalysis

Category Period

66.0%

19.5%

COSTS DASA EVOLUTION

NET REVENUE AND CLINICAL ANALYSISCOSTS DASA EVOLUTION



86/120

2009 2010 2011

How can we

PERPETUATEthis trend towardcontrol?

20132012*

11.7% 10.9% 12.7% 11.2%

*through 3Q12

63.1% 64.0% 64.6%

21.9% 20.1% 20.8%

Category Period

66.0%

19.5%

COSTS DASA EVOLUTION

% CF NTO / NR of Clinical Analysis

Net Revenue from ClinicalAnalysis (% of total)% CV NTO / NR of ClinicalAnalysis

FULL AUTOMATION



87/120

CONVEYORS

87/120

PRODUCTIVITY | CAIAPÓS CONVEYOR



88/120

Employees

100

Tubes

89

100

75

100

96.6

100

90.6

100

93.9

BiochemicalInputs

HormoneInputs

Consolidated

Pre-implementation % Post-implementation %

Gain of

6.1% in labor, tubesand reactiveagents

PRODUCTIVITY | RJ CONVEYOR



89/120

PRODUTICTIVITY | RJ CONVEYOR



90/120

1Q12 2Q12

100105

118

3Q12

Produtictivity based on the first quarter (*)

IncreasedVOLUME with thecapture of thepublic market

BASIS 100

URINALYSIS



91/12091/120

PRODUCTIVITY | URINALYSIS NTO/SP



92/120

100

73

100

9

100

2930

90

100

132

Pre-implementation % Post-implementation %

ImprovedPRODUCTIVITY and SPEED in

issuing results

No. of people

Paperconsumption/

month

Slides read Results issuedat ideal TAT Productivity



93/120

AUTOMATED SEEDING

93/120

PRODUCTIVITY | MICROBIOLOGYSECTOR/RJ



94/120

SECTOR/RJ

100116 116

Productivity based on first quarter

System increases

PRODUCTIVITY and adds

QUALITY

to the process1Q12 2Q12 3Q12BASIS 100



95/120

MASS SPECTROMETRY

95/120

PRODUCTIVITY | MASS SPECTROMETRY



96/120

Reduced TAT, 20% reduction ininput costs in the Microbiology

Sector.

1 2 3 4

5 6 7 8

Operationalization



97/120

SERVICE LEVEL

97/120

LOGISTICAL INTEGRATION



98/120

LOGISTICS

INNOVATION

MEDICAL RELATIONSHIPSREGIONAL MEDICAL MANAGEMENT

EDUCATION AND RESEARCH INSTITUTE(IEP)

CLINICAL RESEARCH

PRODUCTSPathological

Anatomy VaccinesClinicalAnalysis

UNDELIVERED ITEMS | CENTRALLABORATORIES



99/120

82% decline in complaints of undelivered items from Juneto October

LABORATORIES

12.000

26.704

14.19312.493

5.945 4.612

Jun Jul Ago Set Out Objetivo

Objetivo PPM

Complaints per million opportunities

LAB-TO-LAB MARKET



100/120

• Forwarding of special tests to SP NTO• Forwarding of Toxicology tests to RJ NTO•

Forwarding of other tests to Cascavel NTO• Awaiting conclusion of system integration to

decentralize other exams

2012

Competitive advantage with regionalization

LAB-TO-LAB MARKET



101/120

• Ground and air forwarding to NTOs( DF, SP, RJ, PE and Cascavel )

• Reduced time and costs of transportation• Nationwide competitiveness • Production capacity for growth

2013/20142012

• Forwarding of special tests to SP NTO• Forwarding of Toxicology tests to RJ NTO•

Forwarding of other tests to Cascavel NTO• Awaiting conclusion of system integration to

decentralize other exams

Competitive advantage with regionalization

CONCLUSION



102/120

100%108%

151%

Growth (tests)

100% 106%

108%


100%94%

99% Unit Cost

70%

90%

110%

130%

150%

170%


122%

94%

168%

*YTD = SEPT/12

Year 09 Year 10 Year 11 Year 12*



103/120103/22

CFO

WHAT WE ARE DOING...



104/120

CLIENTS STAFF IT

WORK IN PROGRESS...

• CALL CENTER • RENOVATIONS• EQUIPMENT

• REFERENCEPHYSICIANS

• TRAINING

• FRONT END•SYSTEM

CALL CENTER



105/120

IMPROVING CUSTOMER CARE

• Technology replaced for AVAYA MORE STABILITY• Revision of PROCESSES• Centralization on 2 sites (there used to be 4 in Rio)

• TEAM qualification

17%8%

JAN-SEPT2012

OCT-NOV2012

2013E

4%

26% 26%

JAN-SEPT2012

OCT-NOV2012

2013E

4%

SÃO PAULO

RIO DE JANEIRO

RENOVATIONS AND BUYING EQUIPMENT



106/120

•

INCREASE IN PRODUCTIVITY/VOLUME• INCREASE IN AVERAGE TICKET

(higher value added tests)

IMPROVING TECHNOLOGY ASSETS

KEY GAINS:

WHEN TO REPLACE?• When there is an opportunity to INCREASE THE PRODUCTIVITY

• When there is demand for MORE COMPLEX TESTS

• End of LIFE

WHEN TO BUY?• When opening NEW UNITS

• FULL OPERATING capacity

RENOVATIONS AND EQUIPMENT ACQUISITION



107/120

2011 YTD 2012

NEW UNITS 9 19

Standard 7 18Mega 2 1

RENOVATION/EXPANSION OF UNITS 45 26

CT Installation 10 7

MRI Installation 5 9

Other renovations 30 10

IMPROVING TECHNOLOGY ASSETS

REFERENCE PHYSICIANS



108/120

MEDICAL RELATIONSHIP through events, lectures,

Contracting of REFERENCE PHYSICIANS

EDUCATION AND TRAINING for existing physicians

MEDICAL PROJECT at the Unit

IMPROVING THE QUALITY OF WHAT WE DO

symposiums, and Inovar magazine

EFFICIENCY QUALITY AND PROCESS STANDARDIZATION

INOVA: PERFECTING OUR FRONT END



109/120

EFFICIENCY, QUALITY, AND PROCESS STANDARDIZATION

TODAY

26 BRANDS

20 CUSTOMER CARESYSTEMS

INOVA: MATERIAL GAINS

INOVA



110/120

12

3

4

5

6

Gains of PRODUCTIVITY

Integration with CRM

SINGLE NATIONAL MEDICAL RECORD for physician and patient

MULTI-BRAND scheduling

Call Center: HOME OFFICE

UNIQUE database for management

INOVA• web • mobile • collaborative

• integrated to themedical world

INOVA: SCHEDULE



111/120

• 4 brands are included in Inova in 2012

20%

1Q13

50%

2Q13

70%

3Q13

100%

4Q13

RECEIVABLES

RECEIVABLES PROVISION FOR DOUBTFUL ACCOUNTS PROCEEDING GLOSAS



112/120

RECEIVABLES> PROVISION FOR DOUBTFUL ACCOUNTS + PROCEEDING GLOSAS

WHAT WE ARE DOING

• INTERNALIZATION of Key Processes(Adequacy of HEADCOUNT)

• DECENTRALIZATION of the Process for

REGIONAL BRANCHES (agility and focus)• Higher number of CONTRACTS paid via

PAYMENT SLIPS

• Substitution of MIDDLE MANAGEMENT

• Partnership with consulting firm Falconi

(INDG)

LOSS OVER GROSS REVENUE

2011 YTD 2012(SEPT)

3.80%

2.84%

HOW WE ARE EVOLVING

CAPEX

CAPEX 9M12 Other



113/120

CAPEX 9M12

• R$178.1 MM in 9M12 – 71% of the amount estimated for 2012

• Capex guidance: CEILING OF THE NET CASH GENERATION

Opening andexpansion of

units44.8%

Equipment26.9%

IT19.4%

1.4%Land

7.5%

CAPEX PLAN

1Q12 2Q12 3Q12 TOTAL



114/120

Business/areademand

Prioritizesaccording to the

Company’s returnon investment and

strategy

Monitorsinvestment

according to BPand takes

corrective actions

1Q12 2Q12 3Q12 TOTAL

MANAGERIAL CASH FLOW

Accounting EBITDA 122.3 103.0 108.5 333.8Operating Working Capital -22.4 5.2 -17.4 -34.6

Other Working Capital Items -13.8 -0.2 -2.7 -16.7

Financial Expenses -32.4 -33.6 -25.5 -91.5

Income Tax - -8.6 -7.4 -16.0

OPERATING CASH FLOW 53.8 65.8 55.5 175.1

Capex -73.0 -49.3 -55.8 -178.1

PRIORITIES FOR 2013



115/27

MAXIMIZE RETURN IN EXISTING ASSETS1

LEVERAGE REVENUE2

REDUCE COSTS AND EXPENSES3

IMPROVE OPERATION QUALITY4

PEOPLE - MERITOCRACY5

115/120

PRIORITIES FOR 2013MAXIMIZE RETURN IN EXISTING ASSETS



116/27

KPIs

• Increase the PSCs’ OCCUPATIONLEVEL

• Increase the equipment’s OCCUPATION LEVEL

• Ensure RETURN ON INVESTMENT

116/120

PRIORITIES FOR 2013LEVERAGE REVENUE



117/27

• Prospect NEW PAYERS (private, public,hospitals, support)

• Increase the SHARE OF CURRENTCUSTOMERS

• Increase the REVENUE FROMINDIVIDUALS

• PRICE adjustment

117/120

KPIs

REDUCE COSTS AND EXPENSESPRIORITIES FOR 2013



118/27118/120

KPIs

• Increase the PRODUCTIVITY

of the UNITS

• Increase the PRODUCTIVITY ofNTOs (central labs)/NTHs (hospital labs)

PRIORITIES FOR 2013OPERATION QUALITY



119/27119/120

KPIs

• Improve the service level of theCALL CENTER and PSC s

• Ensure return from REFERENCEPHYSICIANS

• Ensure the QUALITY OF TESTS andthe PERCEPTION FROM THEMEDICAL COMMUNITY in CLINICALANALYSIS

• Ensure deadlines and quality ofimplementation of INOVA – Capturegains on PRODUCTIVITY

PRIORITIES FOR 2013PEOPLE



KPIs

• MERITOCRACY – Performance evaluation

•

Ensure organizational TURNOVER

DASA DAY 2012 (english version)

Documents

Transcript of DASA DAY 2012 (english version)