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Investor Presentaiton

23 Adjusted EBTIDA reconciliation (R$ million) 2014 2015 2016 Loss for the year from continuing operations (98) (190) (338) (+) Income and Social Contribution Taxes 7 (7) 105 (+) Depreciation, Amortization, and Depletion 138 136 168 (+/-) Financial Results 361 339 330 (+/-) Results on Sale of Assets (a) (268) 12 5 (+/-) Write-off of Assets (b) 11 11 36 (+) Impairment Charges Goodwill (c) 43 15 45 (+) Non-recurring Expenses (d) 21 39 Adj. EBITDA 194 336 389 a) b) c) d) Reflects certain accounting gains and losses that Estre's management believes to be non-recurring in nature resulting from the sale of assets either above or below book value, sold as part of Estre's efforts to streamline its operations as part of its restructuring process, namely (i) in 2014, the sale of CDR Pedreira to an affiliate of BTG Pactual and Essencis (corresponding to a gain of R$268 million) (ii) in 2015, the sale of Estrans Argentina, and sub-scale contracts, each below book value (together corresponding to a loss of R$12 million), and (iii) in 2016, additional expenses related to the sale of CDR Pedreira (corresponding to a loss of R$5 million). Reflects the non-cash, accounting impact of write offs of (i) the call option to acquire CDR Pedreira from an affiliate of BTG Pactual (corresponding to losses of R$11 million and R$36 million in 2015 and 2016, respectively) and (ii) certain property, plant and equipment following an assessment of the integrity of Estre's supply arrangements conducted by independent external auditors (corresponding to R$57 million and R$15 million in 2014 and 2016, respectively). Reflects the non-cash, accounting impact of impairment charges that Estre's management considers to be extraordinary relating to (i) CTR Itaboraí (corresponding to R$11 million and R$45 million in 2015 and 2016, respectively) and (ii) Resicontrol (corresponding to R$43 million and R$4 million in 2014 and 2015, respectively) reflecting lower profitability projections for those assets. Reflects other expenses that Estre's management believes are non-recurring in nature relating to (i) Estre's organizational restructuring transactions, primarily severance payments in connection with employee lay-offs (corresponding to R$9 million and R$6 million in 2015 and 2016, respectively), and (ii) expenses in 2015 of R$12 million and R$35 million in 2016 related to Estre's then-existing stock option plan. estre LODES COMEÇO
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