Title: 2Q08 Earnings Release
12Q08 Earnings Release Luis Alberto M. L.
Reátegui CEO Rodin Spielmann CFO and Investor
Relations Officer Marcelo Almeida Business
Development Officer
22Q08 Highlights
- Proportional combined net revenue was R 225.9
million in 2Q08, a 132.9 growth over 2Q07. - Proportional combined EBITDA totaled R 7.1
million, a 168.2 increase over 2Q07. - Net Revenue in the 1H08 stood at R 405.6
million, a 110.6 increase over 1H07. - The 1H08 EBITDA came to R 8.8 million, a 15.1
rise against 1H07. - Capital Increase successfully concluded in July
2008, and totaling R 100.5 million, by which
Centennial Asset Mining LLC, company related to
the EBX group, subscribed 52 of the new shares
to hold a total interest of 7.87 of Ideiasnets
capital stock.
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32Q08 Highlights
- Election of the new Ideiasnets CEO Luis
Alberto Monteiro Lobato Reátegui - Consolidation of the womens solutions segment
through Bolsa de Mulher S.A., Ideiasnet
consolidated the womens segment with the
acquisition of the portals Estrela Guia, Feminice
and Bem Leve. With this, it will reach more than
5.7 million unique users per month, 28.0 market
share, becoming the largest media group focusing
on the online female audience in Brazil, as
described in the Subsequent Events section. - Ideiasnet started implementing several measures
to recover the profitability and promote the
accelerated growth of Softcorp as described in
the Subsequent Events section. - For 2008, Ideiasnet maintains its growth
estimate for the proportional combined gross
revenue between 20.0 and 25.0, and EBITDA
between 50.0 and 60.0. These projections do not
consider any possible contribution from iMusica,
Virtus, the recent Bolsa de Mulher deal, or
future mergers and acquisitions.
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4Ideiasnet Portfolio
- Improve of EBITDA margins 2Q08 was
characterized by the improvement of the EBITDA
margins in the invested companies, notably
Officer and Padtec. - Analyst Coverage Brascan Corretora began
coverage of Ideiasnets, indicating a fair price
of R 13.27. Brascan is the first brokerage firm
to value the companies iMusica, Bolsa de Mulher
and NetMovies in addition to Officer and Padtec. - The following were elected to Ideiasnets Board
of Directors Luiz Arthur Andrade Correia,
currently serving in EBX Investments financial
management Luiz Paulo Saade Montenegro,
Vice-President and partner of IBOPE Group, and
Manoel Horácio Francisco da Silva, former CEO of
Telemar.
The graphs in the following pages indicate the
results of the 2Q08 and 1H08 compared to the
results of the same periods in 2007 (2Q07 and
1H07), with and without pro forma adjustments, as
well as comparison of annual amounts.
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5NET REVENUE
(In R Millions)
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6EBITDA
(in R Millions)
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7NET INCOME
(in R Millions)
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8Portfolio Segmentation Net Revenue
- E-Commerce and Content led by Officer Softcorp
and Pini. - Infrastructure and Software led by Padtec and
Automatos. - Wireless
- IdeiasVentures led by Bolsa de Mulher, iMusica,
Media Factory and NetMovies.
Net Revenue 2Q07
Net Revenue 2Q08
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9Portfolio Segmentation EBITDA
EBITDA 2QT07 EBITDA 2Q08
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10Portfolio Highlights in the 2Q08
- OFFICER - Distribution of IT products IDNT
100,0 - In 2Q08, Officer recorded net revenue of
R 193.8 million, up 20.2 against the same
period in 2007. - An improvement in the companys EBITDA of R 7.0
million, was registered last quarter,
representing a 126.5 increase over 2Q07, with
3.6 a margin. - Linksys, a Cisco company, entered into an
agreement with Officer for the distribution of
its entire line of equipment. The agreement will
provide Officer with distribution rights to the
entire Brazilian market. - Recently, Officer launched a new e-commerce
website focused on its resellers. Internet sales
are expected to increase revenue from R10.0
million to approximately R30.0 million per
month.
- PADTEC - Optical Communication Network solutions
- IDNT 34,2 - In 2Q08, Padtec recorded an 81.0 growth in net
revenue over the same quarter in 2007. - The companys EBITDA in the 2Q08 recorded a
36.9 rise against 2Q07. - Padtecs 2Q08 highlights were the acquisition of
three important new clients CTBC, GVT and
Telefônica.
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11Portfolio Highlights in the 1Q08
- AUTOMATOS - IT infrastructure management
IDNT 34,6 - Automatos (70.0) and Telefônica (30.0) created
TecTotal, a company that provides technical
support to residential customers. - Tectotal is present in more than 350
municipalities in Brazil, and has offices in
Peru, the company estimates yearly revenue of
R 15.0 million by the end of 2008.
- IMUSICA - Management and Distribution of Digital
Media IDNT 91.0 - Reached the mark of 2.0 million licensed music
numbers for sale via web. - Through Coolnex, iMusica entered into a
partnership agreement with Wal-Mart, which
created the Download Center. - iMusica distributed 1.0 million mobile music
downloads in 6 months of operations. - iMusica, its the official content aggregator
for the music stores of all the Brazilian
operators.
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12SUBSEQUENT EVENTS
Conclusion of Ideiasnets special auction of
fractional shares On July 8, 2008, Ideiasnet
successfully concluded the capital increase of
R 100.5 million. Interest increase in
NetMovies In July 2008, Ideiasnet, through
IdeiasVentures, raised its stake in NetMovies
from 35.0 to 37.9. Bolsa de Mulher
consolidates its leadership with acquisitions In
July 2008, Bolsa de Mulher acquired the portals
Estrela Guia, Feminice and Bem Leve. The company
now has 5.7 million unique users per month, which
is approximately 28.0 market share of internet
women users in Brazil. Recovery of
profitability at Softcorp Ideiasnet, aware of the
need to recover profitability, improve margins
and continue the accelerated growth of Softcorp,
implemented a management restructuring in July
2008. Together with Deal Maker, a business and
management consultancy, Ideiasnet began an action
plan to recover profitability to the desired
levels. Measures are being implemented to
generate impressive results in the short, medium
and long term.
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13IDEIASNET STOCK
IDNT3 Daily Average Volume of Transactions (in
R million)
During the 2Q08, Ideiasnet shares (IDNT3)
registered a financial volume of R 294,9
millions at the Bovespa. Average daily volume of
transactions in 1H08 was approximately R 4.3
millions.
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14INVESTMENTS OF THE COMPANY
In 2Q08, Ideiasnet invested R 17,1 millions in
its companies
NET DEBIT
At the end of the 2Q08, Ideiasnets net debt in
proportion to its stake in the investee companies
was R 19,6 millions, a reduction compared to
the R 71.1 millions at the end of 1Q08, as a
result of increase of cash and cash equivalents.
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15INCOME STATEMENT (R thousands)
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16DISCLAIMER
This presentation may contain forward-looking
statements concerning future trends and results.
These projections are subject to risks and
uncertainties and future results may differ
materially from such forward-looking statements.
Many of these risks refer to factors that are
beyond Ideiasnets control or ability to
anticipate, including market conditions, currency
fluctuations, the behavior of competitors, the
regulatory environment, the companys ability to
continue raising funds and changes in the social
and political context in which Ideiasnet operates
or in economic trends or conditions, including
inflation and changes in consumer confidence
levels, on a global, national or regional
scale. Readers are hereby advised not to rely
only on these trends and projections, nor is
Ideiasnet obliged to publish any changes to these
trends or projections to reflect subsequent
events or circumstances.
For additional information, please contact our IR
team Rodin SpielmannCFO and Investor
Relations Officer ri_at_ideiasnet.com.br
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