conference call 11/7/2019 - amazon s3...earnings results conference call –11/7/2019 heverton...

3rd Quarter 2019

Earnings ResultsConference Call – 11/7/2019

Heverton Peixoto CEO

Marcus Martino

CFO and IRO

2

DISCLAIMERS

This presentation contains references and statements about outlooks,

planned synergies, estimates, projections and future strategies about Wiz,

its colligates and controlled entities and its commercial partners.

The statements mentioned on this presentation reflect the management’s

understanding regarding the company, that are subject to market risks

and uncertainties.

The information herein presented, follow the IFRS accounting principles, except

when mentioned during the presentation. Wiz is not accountable for updating

estimates in this presentation.

In the charts and tables the sums and growth rates reflect the decimal numbers

of the values that are displayed as rounded in this presentation.

3

WIZ PARCEIROS SALES RECORD

ACHIEVED

Our Business Unit Wiz Parceiros has broken its own record, for another

consecutive quarter, by selling over R$1 billion worth of consortium letters in

the quarter.

WIZ BPOPERFORMANCE

This last quarter, Wiz BPO reached a total of R$25.2 million in Gross Revenue,

accounting for 12.6% of Wiz's results in the period. This performance is a

result of the focus on the continuous expansion of the Unit's client portfolio, as

well as a better productivity of its operations.

INTER SEGUROS EQUITY INCOME

We announced the conclusion of an Operational Agreement with Galápagos

Capital aiming at structuring a home equity loan distribution. Wiz will manage

the distribution, sales and after-sales channel. Galápagos, will be responsible

for the financial structuring, providing the necessary resources to issue the

Home Equity loan.

PARTNERSHIP WITH GALÁPAGOS

CAPITAL

We began to recognize, as from this quarter, Wiz's participation in the result of

Inter Seguros’ operation. In 3Q19, Inter Seguros posted a net income of

R$3.0 million, adding R$1.2 million to Wiz's earnings by the Equity Income

Method.

PARTNERSHIP WITH GALT

VESTIBULARES

We celebrated a partnership with Galt Vestibulares, a free university

admissions preparatory course, offered by volunteers to low-income students

across DF (Brazil´s Federal District). We will provide training to those who are

now undergraduate students in agile methods, financial organization, among

others. There will also be an exclusive selective process at Wiz.

Events and quarter highlights

Earnings Presentation - 3rd quarter 2019

170.0 173.0 173.3 184.6 200.5

482.8558.4

3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19

4

89.1 84.6 98.4 90.2 102.6

231.2291.2

58.7%54.9%

63.7%54.7% 57.2%

53.7%58.4%

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

12.8 53.0

115.2

53.9

106.2

12.8

106.2

42.3 0.7 0.0 56.0 0.0 83.8 56.0

3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19

CashEBITDA EBITDA margin Dividends

+15.7%

1

Indicador (R$ MM) 3Q19 3Q18 ∆% 9M19 9M18 ∆%

Gross Revenue 200.5 170.0 18.0% 558.4 482.8 15.7%

Net Revenue 179.5 151.6 18.4% 498.8 430.8 15.8%

Cost and Expenses

(75.9) (64.6) 17.4% (218.8) (189.8) 15.3%

Other Rev./Exp. (0.9) 2.1 n.a. 11.3 (9.8) n.a.

EBITDA 102.6 89.1 15.3% 291.2 231.2 25.9%

EBITDA Margin 57.2% 58.7% -1.6 p.p. 58.4% 53.7% 4.7 p.p.

Net Income 62.3 54.2 14.8% 172.9 134.8 28.3%

Net Margin 34.7% 35.8% -1.1 p.p. 34.7% 31.3% 3.4 p.p.

Control. stake Net Income

60.1 51.2 17.4% 165.6 129.2 28.2%

| R$ million; %

| R$ million

∆ YoY

| R$ million

+18.0%

EBITDA and EBITDA Margin, consolidated

Key Financial Indicators, consolidated Gross Revenue, consolidated

Cash and Dividends

Earnings Presentation - 3rd quarter 2019Source:Company

¹Note: Figures from 4Q18 due to non-controlling shareholders.

5

Adjusted ResultsAdjusted EBITDA

Adjusted Net Income

Adjusted EBITDA (R$ MM) 3Q19 3Q18 ∆% 9M19 9M18 ∆%

EBITDA 102.6 89.1 15.3% 291.2 231.2 25.9%

PILP Adjustments - - - - 11.4 -

Termination of Executive Position - - - - 0.9 -

Wiz Saúde Operation Termination - (4.5) - (13.6) (4.5) -

Adjusted EBITDA 102.6 84.5 21.4% 277.6 239.0 16.1%

Adjusted EBITDA Margin 57.2% 55.8% +1.4 p.p. 55.7% 55.5% +0.2 p.p.

Adjusted Net Income (R$ MM) 3Q19 3Q18 ∆% 9M19 9M18 ∆%

Net Income 62.3 54.2 14.8% 172.9 134.8 28.3%

PILP Adjustments - - - - 10.7 -

Termination of Executive Position - - - - 0.6 -

Wiz Saúde Operation Termination - (3.5) - (10.4) (3.5) -

AVP Acquisition of Finanseg 0.9 3.0 -69.8% 3.1 8.8 -64.5%

Amortization of Finanseg Intangible Assets 3.5 3.7 -3.7% 10.8 11.2 -3.7%

Wiz Saúde Premium Decrease - - - 4.0 0 -

AVP Acquisition of Inter Seguros 0.9 - - 1.2 0 -

Interest Adjustment on Inter Seguros’ Earn Out 1.0 - - 1.3 0 -

Adjusted Net Income 68.6 57.4 19.4% 183.0 162.7 12.4%

Adjusted Net Margin 38.2% 37.9% +0.3 p.p. 36.7% 37.0% -1.1 p.p.


Performance per Business Unit

Business Unit (R$ MM) 3Q19 3Q18 ∆% 9M19 9M18 ∆%

Bancassurance Operation 140.1 134.6 4.1% 393.1 379.0 3.7%

Wiz BPO 25.2 3.0 732.6% 66.6 8.2 714.3%

Wiz Parceiros 17.0 14.5 17.5% 46.5 43.3 7.2%

Wiz Corporate 13.6 12.6 7.7% 35.4 36.8 -3.8%

Wiz B2U 4.3 4.8 -10.9% 14.0 14.9 -5.8%

Wiz Saúde 0.3 0.4 -40.9% 2.9 0.5 431.5%

Gross Revenue 200.5 170.0 18.0% 558.4 482.8 15.7%

6Source:CompanyNote: : (1) Stock revenue is not an audited financial information and it was structured using Wiz´managerial reports, considering the comissions flow. The accounting method of

stock revenue is described in the glossary of the Earnings Release.(2) The auto segment is fully reclassified to B2U retroactively.

9M18: 78.5% 9M18: 1.7% 9M18: 9.0% 9M18: 7.6% 9M18: 3.2%


Indicator (R$ MM) 3Q19 3Q18 ∆% 9M19 9M18 ∆%

Bancassurance (24.1) (23.9) 0.7% (70.0) (68.3) 2.5%

Wiz BPO (15.3) (4.3) 257.3% (42.1) (11.6) 263.5%

Wiz Parceiros (3.0) (2.9) 2.7% (8.3) (7.9) 4.8%

Wiz Corporate (4.9) (5.3) -8.1% (14.4) (14.1) 2.4%

Wiz B2U (2.5) (3.2) -22.0% (7.6) (9.7) -21.2%

Wiz Saúde (0.4) (0.2) 157.5% (1.3) (0.6) 98.7%

Costs (50.2) (39.8) 26.0% (143.7) (112.2) 28.1%

7

Wiz BPO

48.0%

30.5%

6.0%

9.8%

4.9%0.7%

R$50.2 MM

Wiz ParceirosBancassurance

Wiz Corporate

Cost Breakdown 3Q19

Wiz B2U

Wiz Saúde

Headcount Breakdown3Q193Q18

1,129 1,084

Bancassurance

181

738

BPO

39 44

Parceiros

121 108

Corporate

98 94

B2U

5 17

Saúde


Cost Breakdown per U.N.

60.2%9.0%

10.4%

3.4%

17.1%

8Source: Company


Personnel (15.5) (16.3) -5.2% (45.4) (49.1) -7.6%

Third Party (2.3) (0.9) 157.4% (5.6) (4.0) 38.6%

Tecnology and Telecom (2.7) (3.5) -24.4% (9.8) (12.3) -20.3%

Occupation (0.9) (1.4) -37.9% (2.5) (4.3) -41.7%

Other (4.4) (2.7) 65.5% (11.8) (7.8) 50.7%

General and Administrative (25.7) (24.8) +3.7% (75.1) (77.6) -3.2%

Other rev./expenses (0.9) 2.1 n.a. 11.3 (9.8) n.a.

Third-Party.

R$25.7 MM

Tec. TelecomPersonnel

Occupancy

Other 3Q193Q18

255 258

Administrative

Expenses Breakdown

G&A expenses breakdown 3Q19 Headcount Breakdown


MEP - Inter Seguros

9

Consolidated Results

Net Premium and Clients in Portfolio Gross Revenue Evolution

Nota: (1) Equity income Pro-forma results. Wiz began reporting Inter seguros Equity Income as of 3Q19.

| R$ million;

4.4 4.6 4.7 4.9 5.5

13.615.1

3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19

Indicator (R$ MM) 3Q19 3Q18¹ ∆% 9M19¹ 9M18¹ ∆%

Gross Revenue 5.5 4.4 25.6% 15.1 13.6 11.2%

Net Income 5.2 4.1 27.4% 14.2 12.7 11.8%

EBITDA 3.6 3.2 13.3% 10.0 9.9 1.4%

EBITDA Margin 69.1% 77.7% -8.6p.p. 70.7% 78.0% -7.2p.p.

Net Income 3.0 2.7 11.8% 8.3 8.4 -0.4%

Net Margin 57.6% 65.7% -8.1p.p. 58.8% 66.0% -7.2p.p.

Equity Income (40%)¹ 1.2 1.1 11.8% 3.3 3.3 -0.4%

+11.2%

+25.6%


| R$ million; thousands

16.1 16.7 17.2 18.1 18.8

26.130.0 32.5 34.6 37.8

3Q18 4Q18 1Q19 2Q19 3Q19

Net Premium - In R$ MM

Clients in Portfolio - In thousands


EBITDA 102.6 89.1 15.3% 291.2 231.2 25.9%

Earn-out and Impairment - - n.a. (4.0) - n.a.

Depreciation and Amortization (8.5) (7.8) 9.5% (24.5) (23.5) 4.2%

Equity 0.7 - n.a. 0.1 - n.a.

Financial (2.3) (2.6) -9.8% (3.1) (7.7) -59.9%

Income Taxes (30.1) (24.4) 23.3% (86.8) (65.2) 33.1%

Net Income, Consolidated 62.3 54.2 14.8% 172.9 134.8 28.3%

Net Margin 34.7% 35.8% -1.1 p.p. 34.7% 31.3% +3.4 p.p.

1T191T18

0.0%

20.0%

40.0%

60.0%

0.0

50.0

100.0

-10%

10%

30%

50%

0.0

50.0

10

EBITDA Evolution

Net Income Evolution

Net Income Build-up

53.9

106.2–

62.3

3.28.5

–

(19.8)(1.9)

(–)

Cash in 2Q19 Net Income WorkingCapital

Capex Investment Dividends Other Cash in 3Q191 2

Indicator (BRL million) 3Q19 2T19 1T19 4T18 3Q18

Net Income (Accounted) 62.3 54.0 56.6 49.6 54.2

Depreciation and amortization 8.5 7.9 8.0 8.1 7.8

Working capital (19.8) (5.4) (1.6) (4.4) (3.2)

Capital Expenditure (CAPEX) (1.9) (0.5) (2.4) (2.2) (0.7)

Cash provided by operations 49.7 56.1 60.7 51.0 58.1

Investments 3.2 (61.5) (2.7) (10.1) (16.0)

Dividends - (56.0) - (0.7) (42.3)

Other - - 4.1 - -

Cash flow (52.3) (61.3) 62.1 40.2 (0.2)

11

Cash Flow Bridge in 3Q19


Source:CompanyNota: (1) Net Income; (2) Depreciation, Amortization and other.

Investor Relations:

Marcus Martino – CFO/IRO

Guilherme Aguiar – Market Relations

and M&A Officer

E-mail: [email protected]

Phone: +55 (11) 3080-0100

mailto:[email protected]

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