Report on review of Quarterly Information - ITR
To the Board of Directors and Stockholders Fleury S.A.
São Paulo - SP
We have reviewed the accompanying interim financial information, individual and consolidated, of Fleury S.A. ("The Company"), comprised in the Quarterly Information Form - ITR for the quarter ended March 31, 2016, comprising the balance sheet as of March 31, 2016 and the respective statements of income, comprehensive income, the changes in shareholders' equity and cash flows for the three-month period then ended, including the footnotes.
Management is responsible for the preparation of the individual interim financial information in accordance with the Technical Pronouncement CPC 21(R1) - Interim Financial Information, and the consolidated interim financial information in accordance with CPC 21(R1) and the international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, such as for the presentation of these information in accordance with the standards issued by the Brazilian Securities Commission - CVM, applicable to the preparation of Quarterly Information - ITR. Our responsibility is to express a conclusion on these interim financial information based on our review.
We conducted our review in accordance with the Brazilian and International standards on reviews of interim information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for the financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the audit standards and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the parent company interim financial information
Based on our review, nothing has come to our attention that causes us to believe that the individual interim financial information included in the Quarterly Information - ITR referred to above has not been prepared, in all material respects, in accordance with CPC 21(R1) applicable to the preparation of Quarterly Information - ITR, and presented in accordance with the standards issued by the Brazilian Securities Commission - CVM.
Conclusion on the consolidated interim financial information
Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial information included in the Quarterly Information - ITR referred to above has not been prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34 applicable to the preparation of Quarterly Information - ITR, and presented in accordance with the standards issued by the Brazilian Securities Commission - CVM.
Interim information of the value added
We have also reviewed the individual and consolidated statements of value added (DVA), related to the three-month period ended March 31, 2015, prepared under the responsibility of the Company's management, which presentation in the interim information is required in accordance with standards issued by the Brazilian Securities Commission - CVM applicable to the preparation of Quarterly Information - ITR, and is considered as a supplementary information under IFRS, which do not require the presentation of DVA. These statements were subject to the same review procedures described above, and based on our review, nothing has come to our attention that causes us to believe that it has not been prepared, in all material respects, in accordance with the individual and consolidated interim financial information taken as a whole.
The comparative information related to balance sheet, individual and consolidated, as at December 31, 2012, were audited by other independent auditors, who issued an unqualified audit report on March 3, 2016 and related to information, individual and consolidated, statements of income, comprehensive income, the changes in shareholders' equity and cash flows for the three-month period then ended as at March 31, 2015, were reviewed by other independent auditors, who issued an unqualified review report as of April 29, 2015. The comparative information related to Statements of value added (DVA), individual e consolidated, for the three-month period then ended as at March 31, 2015 were submitted to the subject to the same review procedures by that auditor and, based in its review, that auditor issued that nothing had come to his attention that causes him to believe that the DVA had not been prepared, in all material respects, in accordance with the individual and consolidated interim financial information taken as a whole.
São Paulo, April 24, 2015
KPMG Auditores Independentes CRC 2SP014428/O-6
(Original report in Portuguese signed by)
Marcos Antonio Boscolo Contador CRC 1SP198789/O-0
Fleury ON (Bovespa FLRY3) (Bloomberg FLRY3 BZ; Thomson FLRY3-BR)
Debentures: BRFLRYDBS007, BRFLRYDBS015 e BRFLRYDBS023
On March 31st 2016 Shares Outstanding
São Paulo, April 28th 2016 - Grupo Fleury (BM&FBOVESPA: FLRY3) announces today its 1st quarter (1Q16) results.
All figures are compared to the same period of 2015, unless otherwise stated.
Grupo Fleury enters 2016 completing 90 years, a history initiated in 1926 with the Fleury brand. This history has as one of its most important achievements the build of a valuable reputation, anchored in technical, medical and service excellence and that has been continuously increasing its excellence in management, a factor that has expanded the Company's competitiveness and growth potential.
Driven by this context, in the first quarter of 2016 Grupo Fleury recorded a 12.5% increase in gross revenue (13.8% excluding the effect of the PSCs' sale due to CADE agreement1), reaching R$ 558.6 MM, a record in the Company's history. This growth was achieved in all markets and business segments, especially Operations in Hospitals (+17.7%), Regional brands excluding Rio de Janeiro (+16.0%), Fleury brand (+12.3%) and Rio de Janeiro brands (+12.1%) excluding the effect of PSCs' sale due to CADE agreement.
Compared to the 1Q15, the cancellations index continues its evolution and reaches 2.9%, an 87 bps decrease, demonstrating the Company's discipline and focus on turning its services in cash. This advance, therefore, is reflected in net revenues, which expanded 13.7%.
This continuing effort of qualified growth, associated with productivity gains and efficient management of costs and expenses, resulted in a R$ 121.7 MM EBITDA, with a 24.0% margin, corresponding to a growth of 25.8% with an evolution of 231 bps, respectively.
Given this operational performance, net income expanded 40.6% in the quarter compared to the same period last year, reaching R$ 44.7 MM. Operating cash flow reached R$ 74.0 MM, an increase of 11.7 times compared to the 1Q15 .
The return, measured by ROIC without goodwill, showed strong growth, reaching 23.7% compared to 17.0% in 1Q15, reflecting the ongoing commitment of the Company to get the highest optimization possible of its assets. In addition, it's important to emphasize, the customer satisfaction rates continue to expand. Grupo Fleuy's Net Promoter Score (NPS), which measures the level of recommendation to family and friends after the use of services, reached 72.7%, compared to 68.2% in 1Q15.
It is important to point out that the background for this performance has both the Fleury brand remaining as a highlight in the Company's operations, as well as an increasing contribution of regional brands (a+, Clinica Felippe Mattoso, Diagnoson a+, Labs a+ and Weinmann), which are increasingly protagonists of their segments, disseminating the excellence, culture and values of the Group and continuously delivering better results.
The combined evolution of financial and customer's satisfaction indicators, as well as the trust of the medical community, reflects the sustainability of Grupo Fleury's value proposition, and the confidence that the adopted strategy allows us to face a challenging 2016 and to build the base for the Company's next 90 years.
1. Effect of the PSCs' sale due to CADE agreement: effect of the sale of five PSCs in Rio de Janeiro (material fact of November 11th 2015) in compliance with the agreement signed with CADE in 2014.
Shares Outs Diluted
R$ 21.55 /US$ 6.06
R$ 3,368 MM / US$ 946 MM
Cash and Cash Equivalents
R$ 651 MM / US$ 183 MM
Phone +55 11 5014-7413
Conference Call April 29th 2016
Portuguese with simultaneous translation into English
11:00 (10:00 EDT)
Participants from Brazil:
+ 55 11 2188-0155
Participants from abroad:
+ 55 11 2188-0155
+55 11 2188-0400
Code: Fleury Webcast: www.fleury.com.br/ir