1 q14 apresentação eng_v1

Earnings Release

1Q14

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The material that follows is a presentation of general background information about Cremer as of the date of the

presentation. It is information in summary form and does not purport to be complete. It is not intended to be relied

upon as advice to potential investors. No representation or warranty, express or implied, is made concerning, and

no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein.

This presentation contains statements that are forward-looking within the meaning of Section 27A of the

Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements

are only predictions and are not guarantees of future performance. Investors are cautioned that any such

forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors

relating to the operations and business environments of Cremer and its subsidiaries that may cause the actual

results of the companies to be materially different from any future results expressed or implied in such forward-

looking statements.

Although Cremer believes that the expectations and assumptions reflected in the forward-looking statements are

reasonable based on information currently available to Cremer’s management, Cremer cannot guarantee future

results or events. Cremer expressly disclaims a duty to update any of the forward-looking statement.

This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase

any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or

commitment whatsoever

Disclaimer

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Earnings Release 1Q14

Net Revenue: R$ 145.2 million; +7.4% vs. 1Q13

Gross Profit: R$ 48.2 million; +4.4% vs. 1Q13; 33.2% Gross margin

EBITDA: R$ 19.9 million; -15,7% vs. 1Q13; 13,7% EBITDA margin

Net Income: R$ 5.4 million; 3.7% Net Margin

Operating cash generation: R$ 6.4 million in the 1Q14, and Capex investments of R$ 1.5 million

Cash Cycle: 66.2 days in 1Q14

Net Debt :R$ 218.9 million; 2.72x LTM EBITDA

Highlights

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Net Revenue (R$ million)

1Q14 vs. 1Q13: +7.4%

Industrial Adhesives

Healthcare Products

Net Revenue Evolution Net Revenue Breakdown

93%

7%

1Q14

145.2

50.6%

24.6%

20.4%

4.5%

Hospital BU

Consumer Products BU

Dental BU

Other Healthcare91% 92% 92%

92%

9%8% 8%

8%

1Q13 2Q13 3Q13 4Q13

135.2 146.4152.7

137.3

1Q14 vs. 1Q13: -16.6%

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Net Revenue per BU (R$ million)

1Q14 vs. 1Q13: -6.5%

1Q14 vs. 1Q13: +1.7%

1Q14 vs. 1Q13: +83.4%

Hospital BU Consumer BU

Dental BU Industrial BU

72.7

80.9 81.2

75.1

1Q13 2Q13 3Q13 4Q13

68.0

1Q14

32.5 32.0 34.4 36.3

1Q13 2Q13 3Q13 4Q13

33.1

1Q14

12.8 12.0 12.810.6

1Q13 2Q13 3Q13 4Q13

10.7

1Q14

15.018.8

22.2

13.0

1Q13 2Q13 3Q13 4Q13

27.4

1Q14

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Gross Profit (R$ million)

Industrial Adhesives and Plastics

1Q14 vs. 1Q13: +4.4%; MB -0.9 p.p

Healthcare Products

Gross Profit Evolution Gross Profit Breakdown

93%

7%

33.2%

1Q14

48.2

42.1%

34.0%

20.4%

3.5%

Hospital BU

Consumer Products BU

Dental BU

Other Healthcare

91% 92% 91% 92%

9%8% 9%

8%

34.1% 34.3% 32.0% 31.6%

1Q13 2Q13 3Q13 4Q13

46.150.2 48.8

43.3

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Financials (R$ million)

1Q14 vs. 1Q13: -15.7%

EBITDA Net Income

1Q14 vs. 1Q13: -47.6%

19.9

13.7%

1Q14

5.4

3.7%

1Q14

23.6 24.620.8

15.1

17.4% 16.8% 13.7% 11.0%

1Q13 2Q13 3Q13 4Q13

10.2 9.9

7.4

2.67.6% 6.8%

4.8%

1.9%

1Q13 2Q13 3Q13 4Q13

8 OP = EBITDA minus the stock option plan and some extraordinary non operating effects


OP (R$ million) and OPM

1Q14 vs. 1Q13: -7.9%

1Q14 vs. 1Q13: -14.0%

1Q14 vs. 1Q13: +99.8%

1Q14 vs. 1Q13: -0.1%

Hospital BU Consumer BU

Dental BU Industrial BU

1.6

2.2

1.5

-2.410.7% 11.5%

6.5%

-18.8%

1Q13 2Q13 3Q13 4Q13

3.2

11.7%

1Q14

9.0

13.3%

1Q14

2.2

20.7%

1Q14

6.8 6.4 7.1 7.6

21.0% 20.1% 20.6% 20.8%

1Q13 2Q13 3Q13 4Q13

6.3

19.0%

1Q14

10.5

13.4

9.3 9.2

14.4% 16.6%11.5% 12.2%

1Q13 2Q13 3Q13 4Q13

2.2 2.22.8

1.8

17.3% 18.2%21.9% 17.2%

1Q13 2Q13 3Q13 4Q13

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Financial and Operating Cycles (days of revenue and days of COGS)

Days Sales Outstanding Days Payable Outstanding

Cash Cycle Days Inventory Outstanding

45.2

47.8

49.0

46.8

51.0

1Q13 2Q13 3Q13 4Q13 1Q14

43.940.5

50.8

59.6

71.9

1Q13 2Q13 3Q13 4Q13 1Q14

87.6

91.3

78.9

84.0

87.1

1Q13 2Q13 3Q13 4Q13 1Q14

88.9

98.6

77.171.2

66.2

1Q13 2Q13 3Q13 4Q13 1Q14

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Investments and Operating Cash Generation (R$ million)

1Q14 vs. 1Q13: N/A

1Q14 vs. 1Q13: -51.3%

Investments Operating Cash Generation

3.04.4 3.9 4.0

1Q13 2Q13 3Q13 4Q13

1.5

1Q14

-13.9 -7.3

30.0 28.4

1Q13 2Q13 3Q13 4Q13

6.4

1Q14

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Contacts

Leonardo Almeida Byrro

Chief Executive Officer

Daniel Nozaki Gushi

CFO and Investor Relations Officer Director

Carolina Andraus Figueiredo

Coordinator of IR and Structured Transactions

Giselle Ferreira

Analist of IR

Tel: + 55 11 2102 8000

e-mail: [email protected]

IR Website: www.cremer.com.br/ir