2Q19 Results Recent Events Acquisition GPTW of Softpar - - PowerPoint PPT Presentation

2Q19 Results

Recent Events

Valid from-to: Aug/19 – Aug/20 Rational: New suites Customer portfolio Gross revenues: R$ 18.2 MM EV: R$ 32.0 MM

(+earnout up to R$ 6.0MM)

Acquisition

• f Softpar

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GPTW Certification

Record net revenues and recurring revenues

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Net Revenues

(R$ MM)

Recurring Revenues

(R$ MM | %NR) 2Q19: Record, with organic addition of R$ 1.5MM and inorganic of R$ 6.5 MM 2T19: Record recurring revenues and % of recurrence in line with the record of 1Q19

34.1 42.2 136.8 156.1

2T18 2T19 LTM- 2T18 LTM- 2T19

+ 23.6% + 14.1%

28.1 35.3 105.2 128.3

82.3% 83.8% 76.9% 82.2%

2T18 2T19 LTM- 2T18 LTM- 2T19

+ 25.9% + 21.9%

2Q18 2Q19 LTM- 2Q18 LTM- 2Q19 2Q18 2Q19 LTM- 2Q18 LTM- 2Q19

Impact of extraordinary expenditures and backlog implementation

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Gross profit

(R$ MM | Gross Mg.%)

Adjusted EBITDA

(R$ MM | EBITDA Mg.%)

Expenses1

(R$ MM | %NR)

¹General and administrative (without depreciation, amortization and other expenses).

2Q19: Slight drop due to higher development and implementation costs and extraordinary items (R$ 1.5 MM) 2Q19: Increase with consolidation of expenses of acquired companies and extraordinary items (R$ 0.3 MM) 2Q19: Growth impacted by higher development and implementation costs

12.7 12.4 53.9 52.6

37.3% 29.4% 39.4% 33.7% 2T18 2T19 LTM- 2T18 LTM- 2T19

• 2.7%
• 2.4%

7.7 9.0 32.8 40.1

22.7% 21.5% 23.9% 25.7% 2T18 2T19 LTM- 2T18 LTM- 2T19 + 16.9% + 22.5%

5.0 5.1 21.2 18.4

14.6% 12.1% 15.5% 11.8% 2T18 2T19 LTM- 2T18 LTM- 2T19 +2.1%

• 13.1%

2Q18 2Q19 LTM- 2Q18 LTM- 2Q19 2Q18 2Q19 LTM- 2Q18 LTM- 2Q19 2Q18 2Q19 LTM- 2Q18 LTM- 2Q19

Addition of R$ 55.5 MM (+67.9% vs. 2Q18), of which R$ 13.9 MM organic (+17.0% vs. 2Q18) and R$ 41.6 MM inorganic (R$ 4,4 MM ConsultBrasil, R$ 9.9 MM Atena, R$ 8.2 MM ADSPrev and R$ 19.1 MM Softpar), proving that we have entered a new route of revenue growth 5

81.8 85.0 88.1 90.9 95.7 4.4 22.6 41.6 81.8 85.0 92.5 113.5 137.3 2Q18 3Q18 4Q18 1Q19 2Q19 Organic Inorganic

+67.9%

Software Unit

Portfolio of recurring contracts (R$ MM)

Software Unit

Record revenues and compressed margins due to implementations

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Software Net Revenues

(R$ MM)

Software Gross Profit

(R$ MM | Gross Mg.%)

2Q19: Record, with inorganic addition of R$ 6.5 MM 2Q19: Costs with development and implementation of the backlog

21.9 29.2 90.4 100.4

2T18 2T19 LTM- 2T18 LTM- 2T19

+ 33.5% + 11.0%

10.0 10.0 43.8 39.9

45.7% 34.3% 48.5% 39.7%

2T18 2T19 LTM- 2T18 LTM- 2T19

• 9.0%

2Q18 2Q19 LTM- 2Q18 LTM- 2Q19 2Q18 2Q19 LTM- 2Q18 LTM- 2Q19

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Software Unit

Costs impacted by development and implementation of the backlog

Costs

(R$ MM)

5.2 29.6 2019 Acquisitions Organic

R$ 6.1 MM costs in the quarter to convert sales into revenues (7.5 % of Net Revenues)

Development Customization Implement. Maintenance Support

3.6 2.5 5.5 2.0 16.1

Services Unit

Highest volume of revenues in a 2nd quarter

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Services Net revenues

(R$ MM)

Services Gross profit

(R$ MM | Gross Mg. %)

2Q19: Highest value in a 2nd quarter, with R$ 0.9 MM growth in Outsourcing 2Q19: Slight reduction mainly due to higher costs in the Outsourcing unit

12.2 12.9 46.4 55.7

2T18 2T19 LTM- 2T18 LTM- 2T19

+ 5.7% + 20.0%

2.7 2.4 10.0 12.7

22.2% 18.2% 21.6% 22.8%

2T18 2T19 LTM- 2T18 LTM- 2T19

• 13.2%

+ 26.7%

2Q18 2Q19 LTM- 2Q18 LTM- 2Q19 2Q18 2Q19 LTM- 2Q18 LTM- 2Q19

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Gross Cash

(R$ MM)

Net Debt

(R$ MM)

Gross Debt

(R$ MM) 1T19 2T19 1T19 2T19 1T19 2T19

Financial position

Increase of net debt, with debentures and Softpar acquisition

Acquisition Financial

Movement mainly related to the raising of debentures, sale of treasury shares and acquisition of Softpar Increase of R$ 16.5 MM due to the purchase of Softpar and R$ 18.0 MM due to the settlement of the remaining portion of the debentures. Temporary increase, due to the recent acquisition of Softpar, which should reduce in the coming quarters.

24.6 25.3 + 0.7

47.3 64.3 22.6 39.6 103,9 69,9

+ 34.0 45.3 78.6 + 33.3

4,3x EBITDA

ajust.LTM

2,5x EBITDA

• ajust. LTM

2Q18 2Q19 2Q18 2Q19 2Q18 2Q19

Final Message

Sinqia is ready to execute the consolidation strategy even faster!

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4.7 46.2 181.7

Pre-PE (2004) Pre-IPO (2012) Today

1st Cicle Growth of 10x 2st Cicle Growth of 4x 3rd Cicle

*

Sinqia’s LTM net revenues (-) consolidated revenue from last 4 acquisitions in the period (+) LTM net revenues from last 4 acquisitions at due diligence base date: ConsultBrasil (May/18), Atena (Oct/18), ADSPrev (Sep/18) and Softpar (Dec/18)

Net Revenues

(R$ MM)

(11) 3478-4845 / 4788 ri@sinqia.com.br ri.sinqia.com.br

This material was prepared by Sinqia S.A. (“Sinqia”) (B3: SQIA3) and may contain certain statements expressing management's expectations, beliefs and/or forecasts regarding future events or results. These statements involve risks and uncertainties that could cause results materially different from those projections. Such statements are based on information currently available, from Sinqia and the industry in which Sinqia operates, and is not intended to be complete or serve as advice to potential investors, so readers should not rely exclusively on the contained. Investment in securities issued by Sinqia involves certain risks. Before making any investment decision, prospective investors should carefully consider all the information contained in the Reference Form, in the financial statements with the notes and, if applicable, in the offer memorandum, among others. Business, financial condition, results of operations, cash flow, liquidity or future business could be materially adversely affected by risk factors currently known or unknown. This presentation does not constitute an offer to sell or a solicitation to buy any securities of Sinqia.

Disclaimer

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