Vous êtes sur la page 1sur 82

Diagnsticos da Amrica S.A.

Quarterly Information - ITR


March 31, 2011

Summary
Company Data Capital Stock Composition Cash Earnings Individual Financial Statements Balance Sheet - Assets Balance Sheet - Liabilities Statement of Income Statement of Cash Flows Statement of Changes in Shareholders Equity SCSE - 01/01/2011 to 03/31/2011 SCSE - 01/01/2010 to 03/31/2010 Statement of Added Value Consolidated Financial Statements Balance Sheet Assets Balance Sheet Liabilities Statement of Income Statement of Cash Flows Statement of Changes in Shareholders Equity SCSE - 01/01/2011 to 03/31/2011 SCSE - 01/01/2010 to 03/31/2010 Statement of Added Value Management report Explanatory Notes Other information that the Company considers relevant Opinions and Statements Report of Special Review Statement of Executive Board on the Quarterly Information Statement of Executive Board on the Independent Auditors Report

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 21 76 77 79 80

26

Company Data / Capital Stock Composition Number of shares (units) Paid-in capital Ordinary shares Preferred shares Total Treasury shares Ordinary shares Preferred shares Total Current quarter 03/31/2011 311,803,015 0 311,803,015 459,035 0 459,035

Company Data / Cash Earnings


Event Approval Earnings Initial Payment Share Type of action Earnings per share (Reais / share) 0.13092

Extraordinary General Meeting

04/26/2011

Interest on shareholders equity

06/28/2011

Ordinary

Individual Financial Statements / Balance Sheet Assets

(R$ thousand) Code 1 1.01 1.01.01 1.01.02 1.01.02.01 1.01.02.01.01 1.01.03 1.01.03.01 1.01.04 1.01.06 1.01.06.01 1.01.07 1.01.08 1.01.08.03 1.01.08.03.20 1.02 1.02.01 1.02.01.01 1.02.01.01.01 1.02.01.06 1.02.01.06.01 1.02.01.07 1.02.01.08 1.02.01.08.02 1.02.01.09 1.02.01.09.04 1.02.02 1.02.03 1.02.04 1.02.04.01 Description Total Assets Current assets Cash and cash equivalents Marketable securities Financial investments stated at fair value Securities for trading Accounts receivable Trade accounts receivable, net Inventories Recoverable taxes Current taxes recoverable Prepaid expenses Other current assets Other Other Receivables Noncurrent assets Long-term assets Financial investments stated at fair value Securities for trading Deferred taxes Deferred Income tax and social contribution Prepaid expenses Receivable from related parties Receivable from subsidiaries Other Noncurrent assets Judicial deposits Investments Property, plant and equipment Intangible assets Intangible assets Current Quarter Previous Year 03/31/2011 12/31/2010 3,774,418 694,442 155,448 23,100 23,100 23,100 361,461 361,461 71,250 47,012 47,012 4,420 31,751 31,751 31,751 3,079,976 154,069 35,218 35,218 96,309 96,309 13 11,258 11,258 11,271 11,271 360,996 414,770 2,150,141 2,150,141 1,844,940 731,607 280,478 23,048 23,048 23,048 309,926 309,926 47,152 35,647 35,647 2,449 32,907 32,907 32,907 1,113,333 166,718 34,808 34,808 106,848 106,848 14 11,103 11,103 13,945 13,945 186,463 410,364 349,788 349,788

Individual Financial Statements / Balance Sheet Liabilities (R$ thousand) Code 2 2.01 2.01.01 2.01.02 2.01.03 2.01.04 2.01.04.01 2.01.04.02 2.01.05 2.01.05.02 2.01.05.02.01 2.01.05.02.04 2.01.05.02.05 2.01.05.02.06 2.01.05.02.07 2.01.05.02.08 2.02 2.02.01 2.02.02 2.02.02.02 2.02.02.02.03 2.02.02.02.04 2.02.02.02.05 2.02.03 2.02.03.01 2.02.04 2.02.04.01 2.03 2.03.01 2.03.02 2.03.02.02 2.03.02.04 2.03.02.05 2.03.04 2.03.04.01 2.03.04.05 2.03.05 2.03.06 Description Total Liabilities Current Liabilities Social security and labor liabilities Suppliers Tax liabilities Loans and Financing Loans and Financing Debentures Other liabilities Other Dividends and Interest on own capital Installment taxes Accounts payable from acquisition of subsidiaries Unsecured liabilities from subsidiaries Financial Instruments Other accounts payable Noncurrent liabilities Loans and Financing Other liabilities Other Installment taxes Accounts payable from acquisition of subsidiaries Financial Instruments Deferred taxes Deferred income tax and social contribution Provisions Provisions for tax, civil and labor risks Shareholders' Equity Paid-in capital Capital reserves Special reserve for goodwill on incorporation Options granted Treasury Shares Revenue reserves Legal reserve Retained earnings reserve Retained Earnings Equity evaluation adjustment Current Quarter Previous Year 03/31/2011 12/31/2010 3,774,418 715,692 67,095 46,581 14,071 437,236 437,236 0 150,709 150,709 26,711 4,564 27,188 18,024 18,599 55,623 567,524 350,252 78,491 78,491 7,024 54,647 16,820 27,035 27,035 111,746 111,746 2,491,202 2,234,135 58,399 65,427 -7,028 151,416 14,220 137,196 44,583 2,669 1,844,940 675,349 60,772 48,998 12,806 400,179 331,148 69,031 152,594 152,594 26,711 5,289 30,932 17,299 26,502 45,861 554,704 354,165 73,712 73,712 7,704 53,819 12,189 23,901 23,901 102,926 102,926 614,887 402,091 58,709 65,428 309 -7,028 150,821 14,220 136,601 3,266

Individual Financial Statements / Statement of Income (R$ thousand) Code Description

Accumulated current year 01/01/2011 to 03/31/2011 364,783 -220,384 144,399 -45,078 -61,101 723 79 15,221 99,321 -35,409 15,015 -50,424 63,912 -19,329 -5,657 -13,672 44,583 44,583

Accumulated previous year 01/01/2010 to 03/31/2010 324,265 -203,650 120,615 -50,078 -60,091 1,383 0 8,630 70,537 -20,836 31,715 -52,551 49,701 -12,701 -6,716 -5,985 37,000 37,000

3.01 3.02 3.03 3.04 3.04.02 3.04.04 3.04.05 3.04.06 3.05 3.06 3.06.01 3.06.02 3.07 3.08 3.08.01 3.08.02 3.09 3.11 3.99 3.99.01 3.99.01.01 3.99.02 3.99.02.01

Net sales Cost of goods sold and/or Services Rendered Gross Profit Operating Income/Expenses General and Administrative expenses Other Operating Income Other Operating Expenses Equity in income of subsidiaries Income before financial results and taxes Financial Results Financial income Financial expenses Profit before income taxes Income tax and social contribution Current Deferred Net profit from operations Profit/Loss for the Period Earnings per share (reais/share) Basic earnings per share Ordinary shares Diluted earnings per share Ordinary shares

0.14320 0.14320

0.11884 0.11884

Individual Financial Statements / Statement of Cash Flows (R$ thousand) Code Description

Accumulated current year 01/01/2011 to 03/31/2011 5,962 100,950 44,583 20,614 3,729 13,672 33,880 2 -309 -15,221 -67,306 -51,535 -24,098 -12,232 4,855 -2,417 18,121 -27,682 -27,682 0 -121,466 -20,068 -13,166 -88,232 -9,526 100,000 -76,326 0 -33,200 -125,030 280,478 155,448

Accumulated from the previous year 01/01/2010 to 03/31/2010 118,132 65,087 37,000 21,660 2,022 5,987 6,904 144 0 -8,630 57,462 -37,681 -23 5,902 -2,438 -4,134 107,640 -4,417 -4,012 -405 -19,302 -8,556 -10,743 -3 -92,145 20,084 -106,229 -6,000 0 6,685 26,074 32,759

6.01 6.01.01 6.01.01.01 6.01.01.02 6.01.01.03 6.01.01.04 6.01.01.05 6.01.01.06 6.01.01.07 6.01.01.08 6.01.02 6.01.02.01 6.01.02.02 6.01.02.03 6.01.02.04 6.01.02.05 6.01.02.06 6.01.03 6.01.03.01 6.01.03.02 6.02 6.02.01 6.02.02 6.02.03 6.03 6.03.01 6.03.02 6.03.03 6.03.04 6.05 6.05.01 6.05.02

Net Cash provided by Operating Activities Cash from Operations Net income for the Year Depreciation and Amortization Additional provisions for contingencies Deferred taxes Interest and exchange variations on loans Gain on sale of fixed assets Stock option plan Equity in income of subsidiaries Changes in Assets and Liabilities Increase in trade accounts receivable and other receivables Increase in inventories Increase in other current assets Decrease (Increase) in other non-current assets Decrease in suppliers Increase in accounts payable and provisions Other Interest paid on loans Income tax and social contribution paid Net Cash from Investment Activities Additions to property, plant and equipment Additions to intangible assets Investments in Subsidiaries Net Cash from financing activities Proceeds from loans Payment of loans Paid-in capital subsidiary - CientificaLab Paid-in capital Increase (Decrease) in Cash and Cash Equivalents At the beginning of the year At the end of the year

Individual Financial Statements / Statement of Changes in Shareholders Equity 01/01/2011 to 03/31/2011


(R$ thousand)
Code Description Capital Stock Capital Reserve Granted options and treasury shares 58,708 58,708 -309 0 -309 0 0 58,399 Profit reserves Retained Earnings Other comprehensive result 0 0 0 0 0 44,583 44,583 44,583 0 0 0 0 0 0 0 0 Shareholders Equity

5.01 5.03 5.04 5.04.0 5.04.0 3 5.05 5.05.0 5.07

Opening Balance Adjusted Balance Transaction capital partners Increase in capital Recognized awarded options Total comprehensive results Net income for the period Closing balance

402,091 402,091 1,832,044 1,832,044 0 0 0 2,234,135

154,085 154,085 0 0 0 0 0 154,085

614,884 614,884 1,831,735 1,832,044 -309 44,583 44,583 2,491,202

Individual Financial Statements / Statement of Changes in Shareholders Equity 01/01/2010 to 03/31/2010


(R$ thousand)
Code Description Capital Stock Capital Reserve Granted options and treasury shares 65,427 65,427 0 0 65,427 Profit reserves Retained Earnings Other comprehensive result 0 0 37,000 37,000 37,000 0 0 0 0 0 Shareholders Equity

5.01 5.03 5.05 5.05.0 5.07

Opening Balance Adjusted Balance Total comprehensive results Net income for the period Closing balance

402,091 402,091 0 0 402,091

86,121 86,121 0 0 86,121

553,639 553,639 37,000 37,000 590,639

Individual Financial Statements / Statement of Added Value

(R$ thousand) Code Description

Accumulated current year 01/01/2011 to 03/31/2011 397,071 394,850 723 1,498 -161,215 -67,911 -60,830 -2,103 -30,371 235,856 -20,614 -20,614 215,242 30,315 15,221 15,015 79 245,557 245,557 76,033 57,270 67,671 44,583 44,583

Accumulated from the previous year 01/01/2010 to 03/31/2010 346,243 352,132 1,384 -7,273 -143,300 -66,365 -52,695 -7,230 -17,010 202,943 -21,208 -21,208 181,735 40,345 8,630 31,715 0 222,080 222,080 71,683 45,659 67,738 37,000 37,000

7.01 7.01.01 7.01.02 7.01.04 7.02 7.02.01 7.02.02 7.02.03 7.02.04 7.03 7.04 7.04.01 7.05 7.06 7.06.01 7.06.02 7.06.03 7.07 7.08 7.08.01 7.08.02 7.08.03 7.08.04 7.08.04.03

Revenue Sales of goods, products and services Other revenue Provision/reversal for doubtful receivables Supplies from Third parties Cost of products, goods and services sold Materials, energy, third party services and others Recovery/Loss of assets Other Gross Added Value Retentions Depreciation, amortization and exhaustion Net added value produced Added values received in transfers Equity in income of subsidiaries Financial income Other Total added value to be distributed Distribution of added value Personnel Taxes, fees and contributions Remuneration of Third party capital Remuneration of own capital Retained profits / losses for the period

Consolidated Financial Statements / Balance Sheet Assets (R$ thousand) Code 1 1.01 1.01.01 1.01.02 1.01.02.01 1.01.02.01.01 1.01.03 1.01.03.01 1.01.04 1.01.06 1.01.06.01 1.01.07 1.01.08 1.01.08.03 1.01.08.03.20 1.02 1.02.01 1.02.01.01 1.02.01.01.01 1.02.01.06 1.02.01.06.01 1.02.01.07 1.02.01.08 1.02.01.08.03 1.02.01.09 1.02.01.09.04 1.02.02 1.02.03 1.02.04 1.02.04.01 Description Total Assets Current assets Cash and cash equivalents Marketable securities Financial investments stated at fair value Securities for trading Accounts receivable Trade accounts receivable, net Inventories Recoverable taxes Current taxes recoverable Prepaid expenses Other current assets Other Other Receivables Noncurrent assets Long-term receivables Financial investments stated at fair value Securities for trading Deferred taxes Deferred income tax and social contribution Prepaid expenses Payable to related parties Payable to subsidiaries Other Noncurrent assets Judicial deposits Investments Property, plant and equipment Intangible assets Intangible assets Current Quarter Previous Year 03/31/2011 12/31/2010 4,016,909 937,742 247,766 23,100 23,100 23,100 466,248 466,248 85,418 74,701 74,701 4,492 36,017 36,017 36,017 3,079,167 228,454 66,176 66,176 148,965 148,965 14 258 258 13,041 13,041 276 602,724 2,247,713 2,247,713 1,944,939 845,160 328,670 23,048 23,048 23,048 357,070 357,070 52,390 51,494 51,494 2,489 29,999 29,999 29,999 1,099,779 208,805 63,507 63,507 131,048 131,048 17 0 0 14,233 14,233 320 462,042 428,612 428,612

10

Consolidated Financial Statements / Balance Sheet Liabilities (R$ thousand) Code Description Current Quarter Previous Year 03/31/2011 12/31/2010

2 2.01 2.01.01 2.01.02 2.01.03 2.01.04 2.01.04.01 2.01.04.02 2.01.05 2.01.05.02 2.01.05.02.01 2.01.05.02.04 2.01.05.02.05 2.01.05.02.07 2.01.05.02.08 2.02 2.02.01 2.02.02 2.02.02.01 2.02.02.01.04 2.02.02.02 2.02.02.02.03 2.02.02.02.04 2.02.02.02.05 2.02.02.02.20 2.02.03 2.02.03.01 2.02.04 2.02.04.01 2.03 2.03.01 2.03.02 2.03.02.02 2.03.02.04 2.03.02.05 2.03.04 2.03.04.01 2.03.04.05 2.03.05 2.03.06 2.03.09

Total Liabilities Current Liabilities Social security and labor Liabilities Suppliers Tax Liabilities Loans and Financing Loans and Financing Debentures Other Liabilities Other Dividends and Interest on own capital installment taxes Accounts payable from acquisition of subsidiaries Financial Instruments Other accounts payable Noncurrent liabilities Loans and Financing Other obligations Related party liabilities Liabilities with other related parties Other Installment taxes Accounts payable from acquisition of subsidiaries Financial Instruments Other accounts payable Deferred taxes Deferred income tax and social contribution Provisions Provisions for tax, civil and labor risks Consolidated Shareholders' Equity Paid-in capital Capital reserves Special reserve for goodwill on incorporation Options granted Treasury Shares Revenue reserves Legal reserve Retained earnings reserve Retained Earnings Equity evaluation adjustment Non-controlling interests

4,016,909 809,100 87,063 80,626 28,089 453,377 453,377 0 159,945 159,945 29,944 6,951 27,188 18,599 77,263 716,584 420,530 139,208 21,607 21,607 117,601 29,132 63,624 16,820 8,025 31,633 31,633 125,213 125,213 2,491,225 2,234,135 58,399 65,427 -7,028 151,416 14,220 137,196 44,583 2,669 23

1,944,939 685,551 68,733 58,517 15,799 404,898 335,867 69,031 137,604 137,604 26,711 7,412 30,932 26,502 46,047 644,501 402,138 115,018 21,352 21,352 93,666 20,393 61,084 12,189 0 24,045 24,045 103,300 103,300 614,887 402,091 58,709 65,428 309 -7,028 150,821 14,220 136,601 0 3,266 11

Consolidated Financial Statements / Statement of Income (R$ thousand) Code Description

Accumulated current year 01/01/2011 to 03/31/2011 510,141 -316,282 193,859 -89,115 -90,020 905 104,744 -36,096 19,452 -55,548 68,648 -24,009 -15,078 -8,931 44,639 44,639 44,583 56

Accumulated previous year 01/01/2010 to 03/31/2010 359,426 -226,514 132,912 -62,235 -64,684 2,449 70,677 -16,781 41,956 -58,737 53,896 -16,896 -6,715 -10,181 37,000 37,000 37,000 0

3.01 3.02 3.03 3.04 3.04.02 3.04.04 3.05 3.06 3.06.01 3.06.02 3.07 3.08 3.08.01 3.08.02 3.09 3.11 3.11.01 3.11.02 3.99 3.99.01 3.99.01.01 3.99.02 3.99.02.01

Net sales Cost of goods sold and/or Services Rendered Gross Profit Operating Income/Expenses General and Administrative expenses Other Operating Income Profit before financial result and taxes Financial results Financial income Financial expenses Profit before income taxes Income tax and social contribution Current Deferred Net profit from operations Consolidated profit/Loss for the Period Attributed to the owners of the company Attributed to non-controlling interests Earnings per share (reais/share) Basic earnings per share Ordinary shares Diluted earnings per share Ordinary shares

0.14338 0.14338

0.11884 0.11884

12

Consolidated Financial Statements / Statement of Cash Flows (R$ thousand) Code Description

Accumulated current year 01/01/2011 to 03/31/2011 5,807 119,893 44,583 27,329 3,729 8,931 34,757 817 56 -309 -77,689 -60,411 -25,940 -22,107 3,904 -3,625 30,490 -36,397 -29,682 -6,715 -100,091 -26,302 -13,166 0 -60,623 13,380 102,578 -89,198 -80,904 328,670 247,766

Accumulated previous year 01/01/2010 to 03/31/2010 65,114 98,908 37,000 22,966 2,022 10,182 26,536 202 0 0 -29,017 -39,897 350 -9,592 -1,561 -246 21,929 -4,777 -4,281 -496 -23,054 -12,135 -10,914 -5 0 -87,794 20,084 -107,878 -45,734 286,833 241,099

6.01 6.01.01 6.01.01.01 6.01.01.02 6.01.01.03 6.01.01.04 6.01.01.05 6.01.01.06 6.01.01.07 6.01.01.08 6.01.02 6.01.02.01 6.01.02.02 6.01.02.03 6.01.02.04 6.01.02.05 6.01.02.06 6.01.03 6.01.03.01 6.01.03.02 6.02 6.02.01 6.02.02 6.02.03 6.02.04 6.03 6.03.01 6.03.02 6.05 6.05.01 6.05.02

Net Cash provided by Operating Activities Cash from Operations Net income for the Year Depreciation and Amortization Additional provisions for contingencies Deferred taxes Interest and exchange variations on loans Gain on sale of fixed assets Non-Controlling Interests Stock option plan Changes in Assets and Liabilities (Increase) decrease in accounts receivable and other receivables (Increase) / Decrease in inventories (Increase) / Decrease in other current assets (Increase) / Decrease other non-current assets Increase / (Decrease) in suppliers Increase / (Decrease) in accounts payable and provisions Other Interest paid on loans Income tax and social contribution paid Net Cash from Investment Activities Additions to property, plant and equipment Additions to intangible assets Investments in subsidiaries Acquisition of MD1 subsidiary Net Cash from financing activities Proceeds from loans Payment of loans Increase (Decrease) in Cash and Cash Equivalents At the beginning of the year At the end of the year

13

Financial Statements Consolidated / Statement of Changes in Shareholders Equity 01/01/2011 to 03/31/2011


(R$ thousand)
Code Description Capital Stock Capital Reserve Granted options and treasury shares Profit reserve Retained Earnings Other comprehens ive result Total Parent Company Shareholders Equity Noncontrolling interest Shareholders Equity

5.01 5.03 5.04 5.04.01 5.04.03 5.05 5.05.01 5.05.02 5.05.02.06 5.07

Opening Balance Adjusted Balance

Transaction capital partners


Increase in capital

Recognized awarded Total comprehensive results


Net income for the period Other comprehensive result Non-controlling interest Closing balance

402,091 402,091 1,832,044 1,832,044 0 0 0 0 0 2,234,135

58,708 58,708 -309 0 -309 0 0 0 0 58,399

154,085 154,085 0 0 0 0 0 0 0 154,085

0 0 0 0 0 44,583 44,583 0 0 44,583

0 0 0 0 0 0 0 0 0 0

614,884 614,884 1,831,735 1,832,044 -309 44,583 44,583 0 0 2,491,202

0 0 0 0 0 23 56 -33 -33 23

614,884 614,884 1,831,735 1,832,044 -309 44,606 44,639 -33 -33 2,491,225

14

Financial Statements Consolidated / Statement of Changes in Shareholders Equity 01/01/2010 to 03/31/2010


(R$ thousand)
Code Description Capital Stock Capital Reserve Granted options and treasury shares 65,427 65,427 0 0 65,427 Profit reserve Retained Earnings Other comprehensiv e result Total Parent Company Shareholders Equity 553,639 553,639 37,000 37,000 590,639 Noncontrolling interest Shareholders Equity

5.01 5.03 5.05 5.05.01 5.07

Opening Balance Adjusted Balance Total comprehensive income Net income for the period Closing balance

402,091 402,091 0 0 402,091

86,121 86,121 0 0 86,121

0 0 37,000 37,000 37,000

0 0 0 0 0

0 0 0 0 0

553,639 553,639 37,000 37,000 590,639

15

Consolidated Financial Statements / Statement of Added Value

(R$ thousand) Code Description

Accumulated current year 01/01/2011 to 03/31/2011 551,516 552,150 784 -1,418 -238,391 -99,609 -91,166 -2,387 -45,229 313,125 -27,458 -27,458 285,667 19,453 19,453 305,120 305,120 107,985 78,298 74,198 44,639 44,583 56

Accumulated previous year 01/01/2010 to 03/31/2010 385,189 390,335 2,448 -7,594 -155,934 -68,570 -61,537 -6,497 -19,330 229,255 -22,515 -22,515 206,740 47,179 47,179 253,919 253,919 82,743 54,883 79,293 37,000 37,000 0

7.01 7.01.01 7.01.02 7.01.04 7.02 7.02.01 7.02.02 7.02.03 7.02.04 7.03 7.04 7.04.01 7.05 7.06 7.06.02 7.07 7.08 7.08.01 7.08.02 7.08.03 7.08.04 7.08.04.03 7.08.04.04

Revenue Sale of goods, products and services Other revenue Provision/reversal of doubtful accounts Materials acquired from third parties Cost of products, goods and services sold Materials, energy, third party services and others Loss / Recovery of assets Other Gross added value Retentions Depreciation, amortization and exhaustion Net added value produced Added values received in transfers Financial income Total added value to be distributed Distribution of added value Personnel Taxes, fees and contributions Remuneration of Third party capital Remuneration of own capital Retained profits/loss for the period Non-controlling interests

16

Management report
Dear Shareholder, The first quarter of 2011 was an important period for the Company, given that we implemented a series of actions that will enable us to benefit from the synergies with MD1 and Cerpe, which, allied with the progress of the changes implemented in recent years, represents a huge step for the company to report another year of growth and improved margins and returns for our shareholders. Therefore, we believe that the company is continuously developing to achieve its target of global recognition in terms of quality and efficiency in diagnostic medicine, and providing its services to all segments of the population.

Gross Operating Revenue DASAs consolidated gross revenue in the 1Q11 reached R$552.1 million, representing 41.4% growth versus 1Q10, mainly as a result of the acquisitions of Cerpe and MD1, maturity of the projects implemented during 2010, the recovery of the diagnostic medicine market, the optimization of the portfolio of services offered and the attendance schedules. By analyzing DASAs gross revenue by service line, the lab-to-lab segment had the best performance in the quarter, with 41.1% growth compared to 1Q10 and represented 10.6% of DASAs total revenue. In the public segment, CientificaLab reported a 20.2% decrease compared to 1Q10, reaching revenue of R$37.6 million. It is important to highlight that we terminated some contracts at the end of 3Q10, which still generated effects in 1Q11. Costs and Gross Profit Cash concept1 In 1Q11, the cost of services totaled R$297.7 million, equivalent to 58.4% of net revenue. This percentage figure is stable when compared to the costs of the first quarter in the previous year. In 1Q10, the cash gross profit was R$212.4 million, a 41.7% evolution from 1Q10, and the gross margin for the period reached 41.6%, compared to 41.7% for the previous year. Operating Expenses Cash concept Operating expenses reached R$56.3million in 1Q11, representing 15.7% of net revenue, with this baseline equivalent to the previous year. EBITDA In 1Q11, we reached an EBITDA of R$132.2 million, representing 41.2% evolution compared to the R$93.6 million for the same period of last year. During this quarter, we reported a 25.9% margin, equivalent to the margin reached in the same quarter of the previous year. We continue committed to the integration of the current and future acquisitions, with the optimization of the production and administrative areas and with the continuous reduction of costs, based on a management that is focused on delivering solid results and creating sustainable value for the shareholders in the future.

The cash concept excludes the depreciation and amortization charges from the operating cost and expenses. 17

Financial Result In 1Q11, R$36.1 million in net financial expenses were booked versus R$10.5 million in 1Q10. The financial expenses were mainly affected by the cost of hedging, as from April 2010, and by the increase in the Selic rate from 8.75% in 1Q10 to 11.75% in 1Q11. Taxes Taxes amounted to R$ 24 million in the quarter. It should be noted that we are counting on the benefit from amortization of goodwill, as a result of the acquisitions in prior years, which was incorporated last year. Net Profit In this quarter, the net profit reached R$44.6 million, 20.5% higher than the R$37.0 million profit reported for the same period last year. Cash and Financial Investments We closed the quarter with a high liquidity cash position and financial investments of R$ 247.8 million, which will be directed to: (i) Take advantage of the opportunities to acquire new brands; (ii) continue expanding organically the existing brands; and (iii) overcome the challenges of the coming years, facing a scenario of enhanced competition and the need for increased investment in the operations. Investments During the first quarter of 2011, net investments in CAPEX totaled R$ 29.8 million. This years investments shall be directed mainly to: Refurbish and enlarge the existing PSCs; (ii) Purchase equipment; and (iii) Implantation and development of production and operation systems and attendance. Indebtedness DASA net debt totaled R$ 700.7 million in 1T11. From the total gross indebtedness, 51.2% refers to long term debt and around 42.4% refers to foreign currency debt. The indebtedness in foreign currency consists mainly of bank loans, as well as financing for equipment and International Notes, which were not acquired in the acquisition offer. The debts in domestic currency refer mainly to Promissory Notes. The foreign currency and short term debts will be significantly reduced in 2Q11, and replaced by the issue of debentures approved by the Board on 03/29/11. We highlight also that the debenture of R$70 million was paid on 03/31/11. Highlights Approval of MD1 Diagnsticos SA incorporation proposition On January 5, 2011 the incorporation of shares of MD1 Diagnsticos SA was approved by the Company shareholders, in the EGM with the consequent conversion of the Incorporated Company into a wholly owned subsidiary of the Company (Incorporation of Shares).

18

Increase in the Companys Capital As a result of the Incorporation of shares issued by MD1Diagnosticos S.A., there was an increase in the Companys Capital in the amount of R$1,832,043,519.75, through the issue of 82,191,275 ordinary shares. Start of diagnostic support auxiliary services for the hospitals and medical centers of Amilpar (Foccus/Total) On February 28, 2011, the diagnostic support auxiliary services for the hospitals and medical centers of Amilpar (Foccus/Total) started in the region of So Paulo, under the terms and conditions of the agreement approved in the Meeting held by the Board of Directors on this date. DASA paid R$9.7 million for the exclusive right, for a period of 15 (fifteen) years, to provide services for the Foccus/Total units, and it adjusted the concession of progressive discounts, based on the use by beneficiaries of Amilpar of DASAs PSCs in So Paulo, as stated in the current agreement. The operation contributed to the strengthening of our capacity for processing tests and economies of scale, adding approximately 600 thousand tests/month, in the Foccus/ Total units alone. Election of the New Board of Directors The Ordinary General Meeting held on April 26, 2011, approved the new board, formed by 5 (five) members presented by Skopos, with the consequent election of the members recommend by the latter to the Companys Board of Directors, as follows Romeu Crtes Domingues, as Chairman of the Board; Jos Lucas Ferreira de Melo, as Vice-President of the Board; Luis Guilherme Ronchel Soares as Board member ; Oscar de Paula Bernardes Neto, as Board member ; and Dickson Esteves Tangerino as Board member. The members shall exercise their mandates until the Ordinary General Meeting, which will examine the balance sheet at the end of 2012. Under the terms of the Listing Rules of the New Market, the counselors Jos Lucas Ferreira de Melo, Luis Guilherme Ronchel Soares and Oscar de Paula Bernardes Neto were considered independent counselors. Issue of Promissory Note A promissory note was issued at Banco CreditSuisse (Brazil) in the amount of R$100,000,000.00 on February 18, 2011, as approved in the Board of Directors meeting held on February 9, 2011, payment is due in 360 days, and the remuneration rate is 102.0% of CDI.

2011 Perspectives
There are many expectations for the year 2011. After the restructuring implemented in 2010, we anticipate a year of important growth in all our markets. The Companys main expectations are: Continuity and development of the changes introduced in 2010, targeting sustainable margins and returns; Growth in all lines of business, with the opening of new PSCs and identification of opportunities in new markets;

19

Offering services that fulfill and exceed clients expectations, promoting excellence in the existing markets as well as in new areas; Use of synergies and positive aspects of the business models of recent acquisitions to leverage the companys growth and make it even stronger.

Commitment Clause The company is bound to the arbitration with the Market Arbitration Chamber, according to the commitment clause included in the Companys Articles of Incorporation.

Relation with independent auditors


The statements presented herein related to the business perspectives, projections about operating and financial results and those related to the perspectives of the Companys growth are mere projections and, therefore, are exclusively based on expectations of the Management for the future of the business. This performance report includes nonfinancial as well as financial data such as operating, financial and projections based on the Companys Board expectations. The non-financial data, including EBITDA, were not revised by our independent auditors.

20

1.

Operations
The Company is a publicly-held corporation with its registration granted by the Brazilian Securities and Exchange Commission (CVM) on November 5, 2004, and it has been listed on the Bovespa New Market Segment since November 19, 2004. The Companys corporate purpose is to render services directly to individuals or through health insurance plans, insurance companies, medical-hospital assistance entities, and other entities for healthcare financing, in the following areas: (i) clinical analysis, directly or through contracted laboratories; and (ii) other diagnostic support auxiliary services (SAD), exclusively through specialized clinics, for example, in the following areas : a) cytology and pathologic anatomy; b) diagnostic by imaging and graphic methods; and c) nuclear medicine. Given that management does not control each separate business process, they have not been recognized as reportable segments. In addition, the Company undertakes activities related to: (i) tests of food and substances to evaluate risks for humans; (ii) imports, for its own use, of medical-hospital equipment, diagnostics equipment and related material in general; (iii) elaboration, editing, publishing and distribution of newspapers, books, magazines, periodicals and other written media designated for scientific publication or other activities related to the Company activities; (iv) granting and administration of business franchising including advertising and publishing, training and selection of labor, recommending equipment suppliers and research material, amongst others. The Company operates in lab-to-lab business (support laboratories) through the brand Alvaro, and offers services in the public health sector through the brand CientficaLab. The Company can also invest in other entities.

21

At March 31, 2011, the Company had 493 operational units: Brands Location 03/31/11 37 74 43 13 6 24 36 5 18
18

12/31/09 37 62 46 15 8 28 28 4 17 20 3 2 16 19 7 1 7 1 -

03/31/10 35 61 47 15 8 25 28 6 17 20 1 2 16 20 7 1 6 1 -

Delboni Auriemo So Paulo Lavoisier So Paulo Bronstein Rio de Janeiro Lmina Rio de Janeiro Santa Casa Paran Pasteur Braslia Frischmann Paran Image Bahia Laboratrio lvaro Paran LabPasteur Cear MedLabor Braslia, Tocantins and Gois Vita-Lmina Santa Catarina Atalaia Gois Exame Braslia MedImagem Rio de Janeiro Hospital Me de Deus Porto Alegre Cedic/Cedilab Mato Grosso Unimagem Cear CERPE Pernambuco MD1 Rio de Janeiro Rede Foccus/Total So Paulo

1 2 14 18 7 1 7 1 39 116
13

493

321

316

At March 31, 2011, the Club DA brand had 23 units, with 19 units linked to the Delboni Auriemo brand and 4 units linked to Lmina brand. CientificaLab operates in the public healthcare segment, and its major source of revenue refers to the contracts formalized with clients in the public healthcare sector. For the 1Q11, this operation ended the period with 31 clients, which had made 1.2 million requisitions. CientficaLab attends at 712 collection points, being 92 Inpatient and 620 outpatient clinics. The type and range of services provided vary according to the needs and interest of the public entity requiring the service, and may comprise of three different models: Lab to lab (support): Includes the transport of samples and central processing. In this case, CientficaLab provides the collection materials, training for public employees and sometimes refurbishment of the PSCs to guarantee the quality of the service; Outpatient: In addition to the support service, this includes patient service and sample collection; and

Inpatient: Refers to patient service, collection of tests, local processing of emergency tests, transport and central processing for the other tests. 22

2.

Acquisition of subsidiaries
MD1 Diagnsticos S.A. The Extraordinary General Meeting held on January 5, 2011, approved the proposal for the incorporation by the Company of MD1 Diagnosticos SA (MD1) and its subsidiaries which operates in the segment of clinical analysis and diagnostic imaging, with the consequent conversion of the incorporated company into a wholly owned subsidiary, for the amount of R$ 1,920,275. The consideration transferred is summarized below: Consideration Transferred Cash Incorporation of shares Total R$ 88,232 R$1,832,043 R$1,920,275

MD1 shareholders equity for purposes of the increase to the Companys capital from the incorporation of shares was subject to an appraisal report prepared on December 7, 2010 by Plural Capital Consultoria e Assessoria Ltda. Under the terms of the appraisal report, the economic value of MD1 was determined as R$1,976,705, after deducting the amount of R$88,232 related to the acquisition of shares by the Company in the MD1 and its subsidiaries, (i) CDPI Clnica de Diagnstico por Imagem Ltda. acquisition of 16.50%, (ii) Clnica de Ressonncia e Multi Imagem Ltda acquisition of 28.00% and (iii) ProEcho Cardiodata Servios Mdicos Ltda acquisition of 10.00%. The economic value of MD1 is R$1,888,473, which is greater than the capital increase in the Company. The increase in the Companys capital from the incorporation of shares, as stated in the incorporation protocol, was R$1,832,043, corresponding to the price of R$ 22.29 for the issue of new shares, multiplied by 82,191,275, the number of shares issued according to parameters determined for the ratio for the exchange of shares in MD1 by shares in the Companys capital as a result of incorporating the shares, establishing that the economic value of MD1, deducted from the amount paid in cash by the Company for the investment in the MD1, represents 26.36% of the Company's capital, on diluted bases, after the incorporation of the shares. The replacement ratio was revised and analyzed by N M Rothschild & Sons (Brasil) Limitada (Rothschild), and supported in an opinion issued on December 3, 2010 ("Fairness Opinion"), concluding that the exchange ratio was considered fair for the Company by Rothschild, from a financial point of view. The exchange ratio was defined as 0.94134556, resulting in the issue of 82,191,275 new shares in the Company, to replace 77,370,392 MD1 shares.

23

As a result of the corporate reorganization of MD1 and the acquisition of its subsidiaries listed below, the investments held by MD1 and the Company in the entities are as follows: Corporation MD1 Diagnsticos S.A. Laboratrios Mdicos Dr. Srgio Franco Ltda. CDPI Clnica de Diagnstico por Imagem Ltda. Clnica de Ressonncia e Multi Imagem Ltda. Pro-Echo Cardiodata Servios Mdicos Ltda. MD1 investment 100.00% 83.50% 72.00% 90.00% DASA investment 100.00% 16.50% 28.00% 10.00%

The amounts recognized for the assets and liabilities assumed on the acquisition date, are summarized below:
Assets Current Cash and Banks Financial investments Trade accounts receivable, net Inventories Recoverable taxes Prepaid expenses Others receivables Noncurrent Judicial deposits Financial investments Deferred tax Related party transactions Investments Property, plant and equipment Intangible assets MD1 92,635 18,659 8,950 48,767 7,088 3,718 100 5,353 178,583 1,427 1,470 23,612 308 3 137,157 14,606 CDPI 10,666 355 8,684 275 793 28 531 53,473 753 1,221 308 3 50,930 258 CRMI 6,117 777 42 3,943 356 549 7 443 16,620 377 867 15,196 180 Pro-echo 12,598 151 8,337 144 2,050 11 1,905 28,041 133 6,199 21,700 9

Total assets

271,218

64,139

22,737

40,639

24

Liabilities Current Suppliers Loans and Financing Salaries, social security charges and vacation payable Taxes and contributions payable Unsecured liabilities Dividends and Interest on own capital Other accounts payable Noncurrent Loans and Financing Installment taxes Provision for Contingencies Other accounts payable

MD1 109,855 25,734 21,816 10,417 3,685 281 7,855 40,067 35,823 23,328 2,275 5,593 4,627

CDPI 27,088 3,052 6,392 2,013 342 281 7,855 7,153 15,605 12,939 723 336 1,607

CRMI 5,211 954 1,564 455 160 2,078 3,696 2,212 285 1,199 -

Pro-echo 17,751 1,478 11,843 1,219 161 3,050 24,452 7,556 361 1,778 14,757

Non-controlling interests Shareholders' Equity Capital Capital reserves Revenue reserves Accumulated earnings

7,381 118,159 77,370 (1) 0 40,790

(52) 21,498 4,993 6 7,635 8,864

236 13,594 1,908 6,094 5,592

(1,564) 10,743 101 (12,408)

Total liabilities

271,218

64,139

22,737

40,639

The goodwill recognized from the incorporation of shares in MD1 and from the companies from the MD1 Group, was identified as follows:
MD1 Investment interest Value of investment Equity Goodwill 100.00% 1,832,043 118,159 1,713,884 CDPI 16.50% 50,068 3,547 46,521 CRMI 28.00% 33,627 3,806 29,821 Pro-echo 10.00% 4,537 (156) 4,693 1,920,275 1,794,919 Total

25

The process to allocate the goodwill should be concluded during 2011, when the study undertaken by an independent appraiser to determine the fair values for the assets and liabilities acquired is concluded. The Company incurred costs related to the acquisition of R$4,797 which refer to external legal fees and due diligence costs. The legal fees and due diligence costs were included as part of administrative expenses reported in the Companys statement of income.

Instituto de Endocrinologia e Medicina Nuclear do Recife Ltda. - CERPE On October 25, 2010 DA Participaes Ltda, an entity controlled by the Company, established private Agreements for the Purchase and Sale of Shares, for the acquisition of 100% of the capital of Instituto de Endocrinologia e Medicina Nuclear de Recife Ltda. - CERPE, with 69.5% of CERPEs capital transferred on that date and 30.5% to be transferred within 10 years. The acquisition value of CERPE was R$52,501, being R$45,246 paid in cash and R$7,255 to be retained in an account tied to the acquisition out of this amount R$4,316 shall be retained for a period of six years, as a guarantee for any contingency and R$2,939, as a final payment due within 10 years. The process to allocate the goodwill was concluded during this quarter, with the conclusion of the study to determine the fair values for the assets and liabilities acquired, undertaken by an independent appraiser The amounts recognized for the assets and liabilities acquired on the acquisition, have been summarized below, adjusted according to the result of the study prepared by the independent appraiser:

26

Assets Current Cash and banks Marketable securities Trade accounts receivable Inventories Other accounts receivable 14,173 432 3,839 8,690 462 750

Liabilities Current Suppliers Loans and financing Taxes ans contributions payable Salaries, social security charges and vacation payable Income tax and social contribution Payment of taxes in installments Other accounts payable Noncurrent Payment of taxes in installments Provisions of contingencies Income tax deferred Related party transactions Unsecured liabilities Capital Capital reserve Accumulated profit 7,275 2,814 65 1,367 1,829 463 95 642 37,732 11,444 374 4,562 21,352 (13,435) 122 (24,448) 10,891 31,572

Noncurrent Judicial deposits Investments Property ans equipment, net Intangible assets, net

17,399 251 42 3,567 13,539

Total assets

31,572

Total liabilities

Identified tangible assets: R$12,197 (i) R$1,198 (ii) R$13,395 (i) brands that are amortized on a straight line basis, over the estimated life of 30 years. (ii) relationships with hospitals which are amortized on a straight line basis, over the estimated life of 24 months. Goodwill The goodwill recognized as result of the acquisition, after identifying the intangibles assets, is demonstrated as follows:

Value of investments Negative equity Goodwill

52,501 13,435 65,936

27

3.

Basis of preparation
3.1 Declaration of conformity (in relation to IFRS and CPC norms) These financial statements include: The consolidated quarterly financial statements were prepared according to International Financial Reporting Standards issued by the International Accounting Standards Board (IASB) and also in accordance with the accounting practices adopted in Brazil and the accounting pronouncements issued by the Accounting Pronouncements Committee (CPC); and

The individual quarterly financial statements of the parent Company were prepared according to the accounting pronouncements issued by the Accounting Pronouncements Committee (CPC).
The individual quarterly financial statements of the parent company were prepared according to CPCs, and in the case of the Company, those practices differ from the IFRSs applicable to the separate quarterly financial statements, since the valuation of investments in the subsidiaries was based on the equity method according to the CPCs, while for IFRS it should be based on cost or fair value. However, there is no difference between the consolidated shareholders equity and the profit or loss reported by the Company and the shareholders equity and the profit or loss reported by the parent company in its individual quarterly information. Therefore, the Companys consolidated quarterly information and the parent companys quarterly information are presented side-by-side in one set of quarterly information. The publication of the individual and consolidated quarterly statements were authorized by the Board in the meeting held on May 4, 2011. 3.2 Basis of measurement The individual and consolidated quarterly statements were prepared based on the historical cost except for the following relevant items in the balance sheet: derivative financial instruments stated at fair value; certain financial instruments stated at fair value through profit or loss.

3.3 Functional currency and currency for presenting the financial statements These individual and consolidated quarterly financial statements are presented in reais, which is the Companys functional currency. All financial information presented in reais has been rounded to the nearest thousand, except when stated otherwise. 3.4 Use of estimates and judgments The preparation of the individual and consolidated quarterly financial statements in conformity with IFRSs and CPCs requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the amounts reported for assets, liabilities, income and expenses. The actual results may differ from these estimates. 28

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The information on critical judgments in applying accounting policies that affect the amounts recognized in the individual and consolidated quarterly financial statements is included in the following notes: Note 30 Leases The Information on uncertainties regarding assumptions and estimates that represent a significant risk of a material adjustment being required within the next financial year is included in the following notes: Note 10 Trade accounts receivable Note 23 Provision for contingencies 3.5 Statement of Comprehensive income There were no transactions in equity, in all material aspects, which could lead to adjustments that could comprise the statement of comprehensive income.

4.

Significant accounting policies


There were no changes in the most significant accounting policies in relation to the year ended December 31, 2010. These policies are presented in note 4 to the financial statement of that year, which were published on March 24, 2011. The presentation of this individual and consolidated quarterly information reflects the rulings in CPC 21 Interim Financial Statements and IAS 34 Interim Financial Reporting issued by IASB, respectively.

5.

Measuring fair value


There were no changes in criteria for measuring the fair values during the quarter. Note 5 to the financial statements for year ended December 31, 2010 contains the description of the criteria adopted for determining fair value.

6.

Financial risk management


There were no changes in the quarter for the management of financial risks. Note 6 to the financial statements for year ended December 31, 2010 contains the description of these policies.

29

Capital management The Company monitors the financial leverage to maintain a capital structure that is appropriate for its operations and to reduce the cost of indebtedness. The leverage index used corresponds to the net debt divided by total shareholders equity.

The indices for financial leverage at March 31, 2011 and December 31, 2010, are presented below:

03/31/2011

12/31/2010

Consolidated Debt Cash and cash equivalent and financial investments Net debt Shareholders equity Index

1,037,711 337,042 700,669 2,491,202 0.28126

967,385 415,225 552,160 614,887 0.89799

The Company can modify its capital structure according to economical-financial, strategic or operating conditions, in order to improve debt management. At the same time, the company seeks to improve its Return on Invested Capital (ROIC), by implementing working capital management and an efficient investment program.

7.

Operating segments
An operating segment is a component of the Company that undertakes business activities from which income is earned and expenses are incurred, including income and expenses related to transactions with other the Companys other components. For the Companys business, Management understands that the companies that form the DASA group are similar, given that they have similar economic and business characteristics, and that their service and production process, types of client, supplier sand logistic processes are similar, and as such has defined the diagnostic support Auxiliary services as the only operating segment and the sole reporting unit, due to the similarity that exists throughout the Companys business.

30

The Companys net income is distributed in such a way that its major client does not surpass 10% of total income. Additionally, the geographic distribution of net income in terms of volume, is not significantly dispersed for it to be presented separately.

8.

Consolidated quarterly financial statements


The Consolidated quarterly financial Statements include the financial information of the Company and the following subsidiaries:
% share 03/31/11 Direct subsidiaries: DASA Real Estate Empreendimentos Imobilirios Ltda. CientficaLab Produtos Laboratoriais e Sistemas Ltda. DASA Finance Corporation DA Participaes Ltda. DASA Brasil Participaes Ltda. DASA Empreendimentos e Participaes Ltda. MD1 Diagnsticos S.A. (a) Pro Echo Cardiodata Servios Mdicos Ltda. (a) CRMI - Clnica de Ressonncia e Multiv Imagem Ltda. (a) CDPI - Clnica de Diagnstico por Imagem Ltda. (a) 99.99% 99.99% 100.00% 99.00% 99.00% 99.00% 100.00% 75.30% 45.22% 53.64% 12/31/10 99.99% 99.99% 100.00% 99.00% 99.00% 99.00% -

Indirect Subsidiaries: Instituto de Endocrinologia e Medicina Nuclear do Recife Ltda. CERPE Pro Echo Cardiodata Servios Mdicos Ltda. (a) CRMI - Clnica de Ressonncia e Multi Imagem Ltda. (a) Mult-Imagem Caxias (b) Mult-Imagem Petrpolis (b) CDPI - Clnica de Diagnstico por Imagem Ltda. (a) Imagem (c) Check-Up UP (c) Incebras (c) Laboratrios Mdicos Dr.Srgio Franco Ltda. (a)

100.00% 24.70% 54.78% 100.00% 70.00% 46.36% 99.94% 55.00% 29.00% 100.00%

100.00% -

(a) MD1 Entities acquired by the Company, see note 2. direct and indirect subsidiaries (b) Entities owned by CRMI Clnica de Ressonncia e Multi Imagem Ltda. (c) Entities owned by CDPI Clnica de Diagnstico por Imagem Ltda.

31

9.

Cash and cash equivalents


Parent Company 03/31/11 Cash and cash equivalents Marketable securities 5,361 150,087 155,448 12/31/10 3,205 277,273 280,478 Consolidated 03/31/11 13,531 234,235 247,766 12/31/10 6,833 321,837 328,670

Cash and cash equivalents classified to consolidated current assets are presented below:
03/31/11 US$ Currency Amount R$ R$ US$ 10,119 US$ 5,710 15,829 R$ Amount 13,531 208,454 16,481 9,300 247,766 Annual interest rate 101.02% of CDI 4.48% 6.52%

Cash and bank Fixed income fund Brazilian Debt security (a) Private Debt security (a)

12/31/10 US$ Currency Amount R$ R$ 10,257 US$ 5,592 US$ 15,849 R$ Amount 6,833 295,430 17,090 9,317 328,670 Annual interest rate 101.02% of CDI 4.48% 6.52%

Cash and bank Fixed income fund Brazilian Debt security (a) Private Debt security (a)

(a) Held in custody with Ita BBA Nassau

32

10. Trade accounts receivable


Parent Company 03/31/11 Current assets Trade notes receivable: Due Overdue (a) 12/31/10 Consolidated 03/31/11 12/31/10

236,049 108,254 344,303

195,245 116,358 311,603 2,225 5,205 4,807 43,359 55,596

271,492 147,763 419,255 1,959 11,701 5,129 112,378 131,167

216,007 134,438 350,445 2,084 5,265 4,824 58,279 70,452

Other accounts receivable: Checks in collection Credit cards Returned checks Receivables - Health insurance

1,959 11,636 4,655 54,435 72,685

Less: Provision for disallowances and for doubtful accounts Provision for losses on returned checks

(50,872) (4,655) 361,461

(52,466) (4,807) 309,926

(79,045) (5,129) 466,248

(59,003) (4,824) 357,070

(a) The aging of overdue balances is presented below:

Parent Company 03/31/11 0 to 30 31 to 60 61 to 90 91 to 120 121 to 180 181 to 360 above 360 20,215 10,388 7,983 7,455 10,166 21,897 30,150 108,254 12/31/10 17,994 13,181 8,552 10,992 15,490 16,011 34,138 116,358

Consolidated 03/31/11 30,086 16,786 12,848 8,224 16,325 25,472 38,022 147,763 12/31/10 20,306 15,287 13,848 11,474 16,215 19,181 38,127 134,438

33

The collection process for diagnostic medicine services provided by the Company is complex, due to a variety of factors, including the large number of health plans used, the different coverage offered, the information requested by these plans for approval of payment and questioning by the health plans as to the adequacy of the supporting documentation. All of these factors, historically, contribute to the average recovery period for payments being different from the periods defined in the contracts. Provisions for disallowances are established monthly based on estimated probable losses as a result of the value of the disallowances being discussed. These discussions refer mainly to: (i) operational issues, such as services provided to clients of health plans without previous authorization; (ii) sales issues, such as new price lists agreed, which have not been updated in both systems; and (iii) technical issues, such as different interpretations of examination requisitions. Administration has a policy for recording the bad debt provision. The rule establishes the percentage for the provision at (i) 25% of the invoice value overdue between 91 and 120 days; (ii) 50% between 121 and 180 days; (iii) 75% between 181 and 360 days; and (iii) 100% above 360 days. As an exception to this rule, the amounts receivable from certain clients are analyzed separately. The changes for provision for disallowances and bad debts during the period were as follows:
Balance at December 31, 2010 Acquisitions of subsidiaries Additions to provision for disallowances Additions to bad debt provision Write-off (utilization) of disallowances Write-off (utilization) of bad debt provision Balance at March 31, 2011 (59,003) (14,562) (11,713) (1,494) 7,651 76 (79,045)

11. Inventories
Parent Company 03/31/11 Domestic clinical analysis and diagnostic imaging materials Imported clinical analysis and diagnostic imaging materials Domestic secondary clinical analysis and diagnostic imaging Materials Sundry materials Inventories held by third parties Provision for obsolescence 12/31/10 Consolidated 03/31/11 12/31/10

34,875 16,980 9,483 4,352 7,802 (2,242) 71,250

22,243 11,167 8,355 4,405 3,224 (2,242) 47,152

43,860 17,224 10,895 7,620 8,148 (2,329) 85,418

25,431 11,266 9,185 5,266 3,571 (2,329) 52,390

34

12. Recoverable taxes, deferred tax assets and liabilities


a. Recoverable taxes - Current

Parent Company 03/31/11 INSS (National Institute of Social Security) Withholding income tax (IRRF) Income tax recoverable Social contribution recoverable COFINS (Tax for social security financing) and PIS (Social integration program) tax withheld Others 1,311 15,596 11,588 12/31/10 1,166 2,026 7,225 8,469

Consolidated 03/31/11 11,796 1,187 23,444 14,518 12/31/10 10,971 3,452 7,927 8,849

14,917 3,600 47,012

13,374 3,387 35,647

16,526 7,230 74,701

14,525 5,770 51,494

b.

Deferred tax assets and liabilities

The deferred income and social contribution taxes are recognized to reflect future tax effects attributable to temporary differences between the tax bases of assets and liabilities and their respective book values. In accordance with CPC 32, the Company, based on its past profitability and the expectation of generating future taxable income considering the technical viability study approved by management, recognized tax credits on income tax loss carryforwards and the accumulated negative basis for social contribution tax, with no limitation date, and that can be offset against a maximum of 30% of annual taxable income. The carrying amount of the deferred tax assets and liabilities is reviewed on a quarterly basis and projections are reviewed annually. If there are material factors that may modify the projections, these will be reviewed during the year by the Company.

35

The origin of deferred income and social contribution taxes is presented below:
Parent Company Deferred tax assets Tax loss carryforward and negative basis Provision for doubtful accounts, disallowances and discounts Provision for obsolescence Inventories Amortization of goodwill Provision for specialized medical services Sundry provisions Provision for contingencies Present value adjustments - Financing Amortization of pre-operating expenses Others 03/31/11 12,008 751 18,764 1,649 3,010 37,631 22,496 96,309 12/31/10 6,134 13,939 751 21,430 1,699 6,390 29,093 22,496 4,916 106,848 Consolidated 03/31/11 6,416 20,908 781 42,467 1,649 11,013 41,675 22,496 1,560 148,965 12/31/10 6,495 15,709 781 41,687 1,699 8,172 29,093 22,496 4,916 131,048

Parent Company Deferred tax liabilities Amortization of goodwill Exchange variations Provision for income Intangible assets Others 03/31/11 10,153 7,322 9,560 27,035 12/31/10 7,419 7,299 9,183 23,901

Consolidated 03/31/11 10,311 7,322 4,440 9,560 31,633 12/31/10 7,556 7,306 9,183 24,045

36

13. Investments
Parent Company 03/31/11 Investment in subsidiaries DASA Real Estate Empreendimentos Imobilirios Ltda. CientficaLab Produtos Laboratoriais e Sistemas Ltda DA Participaes Ltda. MD1 Diagnsticos S.A. CDPI - Clnica de Diagnstico por Imagem Ltda. CRMI - Clnica de Ressonncia e Multi Imagem Ltda. Pro Echo Cardiodata Servios Mdicos Ltda. 12/31/10 Consolidated 03/31/11 12/31/10

26,805 85,656 74,396 133,073 15,209 6,431 19,225 360,795

26,841 85,715 73,660 186,216 247 186,463

276 276

320 320

Others investments

201 360,996

The main information on the direct investments in the net capital of the investee companies is presented as following:
DASA Real CRMI Estate Cientfica CDPI Clnica de Empreendim DASA Lab Clnica de Ressonncia entos Prod. Lab. e Finance DA MD1 Diagnstico e Multi Imobilirios Sistemas Corporati Participaes Diagnsticos por Imagem Imagem Ltda. on Ltda. Ltda. S.A. Ltda. Ltda. Pro Echo Cardiodata Servios Mdicos Ltda. 39,143,058 29,474,306 75.30%

Total Shares or quota Number of shares or quota: % investment Balance for investments in subsidiaries classified as investments at 31 March, 2011 Balance for investments in classified as current liabilities (Unsecured liabilities) at March 31, 2010.

25,667,078 25,667,078 99.99%

27,176,629 27,176,628 99.99%

50,000 50,000 100%

73,856,500 73,856,000 99.00%

63,552,081 63,552,081 100.00%

899,280 482,381 53.64%

2,508,000 1,134,240 45.22%

26,805

85,656

74,396

133,073

15,209

6,431

19,225

(18,024)

Assets: Current Assets Non-current Assets Total assets Liabilities: Current Liabilities Non-current Liabilities Total liabilities Non-controlling interest (a)

2,005 24,914 26,919

74,814 50,136 124,950

29,057 29,057

14,740 112,484 127,224

128,401 183,452 311,853

9,310 29,276 38,586

3,510 7,966 11,476

9,981 22,473 32,454

114 114 -

25,802 13,492 39,294 -

1,161 45,920 47,081 -

7,839 44,989 52,828 -

82,232 55,660 137,892 40,888

9,872 13,670 23,542 (165)

2,095 2,800 4,895 150

5,890 7,339 13,229 -

37

Shareholders' equity Income: Revenues Expenses Profit (loss) of investee for the period

26,805

85,656

(18,024)

74,396

133,073

15,209

6,431

19,225

353 (389) (36)

32,893 (32,952) (59)

(724) (724)

9,867 (9,330) 537

117,006 (102,092) 14,914

12,921 (11,390) 1,531

3,415 (3,401) 13

6,595 (7,578) (983)

Equity in income of subsidiaries

(36)

( 59)

(725)

536

14,914

1,022

(36)

(395)

(a)

Non-controlling interests MD1 Diagnsticos S.A.(MD1) Non-controlling interest in the equity of MD1 basically refers to the shares of the Company in the MD1 group entities, acquired according to information stated in Note 2, as follows: Company investments at 03/31/11 Value Pro Echo Cardiodata Servios Mdicos Ltda. CRMI - Clnica de Ressonncia e Multi Imagem Ltda. CDPI - Clnica de Diagnstico por Imagem Ltda. 19,225 6,431 15,209 40,865
DASA Real CRMI Estate Cientfica CDPI Clnica de Empreendim Lab Clnica de Ressonncia e Multi entos Prod. Lab. e DASA DA MD1 Diagnstico Imobilirios Sistemas Imagem Finance Participaes Diagnsticos por Imagem Ltda. Ltda. Corporation Ltda. Ltda. Ltda. S.A.

% 75.30% 45.22% 53.64%

Pro Echo Cardiodata Servios Mdicos Ltda.

Total

Balance for investments at December 31, 2010 Balances for unsecured liabilities at December 31, 2010 Acquisition interest of investment

26,841

85,715

73,660

186,216

(17,299)

118,159 -

(17,299)

of (36)

200 -

3,547 4,000 6,640

3,806 600 2,061

(156) 28,400 (8,624)

125,356 33,200 77

Increase in capital (a) Capital gains (loss) Equity in subsidiary income

( 59)

(725)

536

14,914

1,022

(36)

(395)

15,221

Balance for investments at March 31, 2011 Balances for unsecured liabilities at March 31, 2011

26,805

85,656

74,396

133,073

15,209

6,431

19,225

360,795

(18,024)

(18,024)

38

(a) Capital Increase: DA Participaes: Increase in capital on March 9, 2011, for the amount of R$200, totally subscribed and paid-up by the Company, with the issue of 200,000 new quotas. CDPI: Increase in capital on March 14, 2011, for the amount of R$ 4,000, totally subscribed and paid-up by the Company, with the issue of 400,000 new quotas. The Companys investment in the capital of CDPI subsequently increased from 16.50% to 53.64%. CRMI: Increase in capital on March 14, 2011, for the amount of R$ 600, totally subscribed and paid-up by the Company, with the issue of 600,000 new quotas. The Companys investment in the capital of CDPI subsequently increased from 28.00% to 45.22%. Pro Echo: Increase in capital on March 31, 2011, for the amount of R$ 28,400, totally subscribed and paid-up by the Company, with the issue of 28,400,000 new quotas. The Companys investment in the capital of CDPI subsequently increased from 10.00% to 75.30%.

39

14. Property, plant and equipment, net


Parent Company Average depreciation rate % p.a. Buildings Leasehold improvements Machinery and equipment Furniture and fixture Facilities IT equipment Vehicles Library Land Construction in progress 4 10 10 a 20 8 10 25 20 10 03/31/11 Cost 1,045 295,055 420,327 49,226 16,239 81,898 3,792 147 30 28,210 895,969 Depreciation (448) (185,398) (216,028) (23,610) (5,986) (47,154) (2,476) (99) (481,199) Net 597 109,657 204,299 25,616 10,253 34,744 1,316 48 30 28,210 414,770 12/31/10 Net 608 110,789 201,593 26,622 10,009 33,894 1,474 50 30 25,295 410,364

Consolidated Average depreciation rate % p.a. Buildings Leasehold improvements Machinery and equipment Furniture and fixture Facilities IT equipment Vehicles Library Land Construction in progress 4 10 10 a 20 8 10 25 20 10 03/31/11 Cost 11,637 372,591 560,212 61,326 32,239 102,338 6,979 233 4,487 35,986 1,188,028 Depreciation ( 2,367) (203,061) (274,194) ( 27,895) ( 12,440) ( 60,821) ( 4,317) ( 172) (37) (585,304) Net 9,270 169,530 286,018 33,431 19,799 41,517 2,662 61 4,487 35,949 602,724 12/31/10 Net 9,385 127,179 216,570 28,964 10,671 37,366 2,069 55 4,487 25,296 462,042

40

Changes in cost
Parent Company Changes in the quarter 12/31/10 Buildings Leasehold improvements Machinery and equipment Furniture and fixture Facilities IT equipment Vehicles Library Land Construction in progress 1,045 291,287 410,892 48,967 15,692 78,752 3,807 147 30 25,296 875,915 Additions 3,768 8,370 259 547 3,146 3,979 20,069 Write off (15) (15) Transfers 1,065 (1,065) 03/31/11 1,045 295,055 420,327 49,226 16,239 81,898 3,792 147 30 28,210 895,969

Consolidated Changes in the quarter Additions by subsidiaries 57,104 115,433 8,774 14,606 13,578 1,144 74 5,435 216,148

12/31/10 Buildings Leasehold improvements Machinery and equipment Furniture and fixture Facilities IT equipment Vehicles Library Land Construction in progress 11,637 311,345 433,381 52,318 16,613 85,350 6,006 159 4,487 25,296 946,592

Additions 4,210 10,885 407 1,139 3,486 6,177 26,304

Write off ( 1) ( 552) ( 147) ( 82) ( 59) (171) ( 6) (1,018)

Transfers (67) 1,065 (26) (37) (17) (918) -

Others 2 2

03/31/11 11,637 372,591 560,212 61,326 32,239 102,338 6,979 233 4,487 35,986 1,188,028

41

Changes in accumulated depreciation


Parent Company Changes in the quarter 12/31/10 Buildings Leasehold improvements Machinery and equipment Furniture and fixture Facilities IT equipment Vehicles Library (437) (180,498) (209,300) (22,346) (5,683) (44,857) (2,333) ( 97) (465,551) Additions (11) (4,900) (6,728) (1,264) (303) (2,297) ( 153) ( 2) (15,658) Write off 10 10 03/31/11 (448) (185,398) (216,028) (23,610) (5,986) (47,154) (2.476) ( 99) (481,199)

Consolidated Changes in the quarter Acquisition of subsidiary (12,628) (47,413) (3,018) (5,854) (9,696) (286) (65) (34) (78,994)

12/31/10 Buildings Leasehold improvements Machinery and equipment Furniture and fixture Facilities IT equipment Vehicles Library Land Construction in progress (2,252) (184,166) (216,811) (23,356) (5,942) (47,981) (3,938) (104) (484,550)

Additions (115) (6,267) (9,984) (1,542) (644) (3,144) (259) (3) (3) (21,961)

Write off 14 21 166 201

03/31/11 (2,367) (203,061) (274,194) (27,895) (12,440) (60,821) (4,317) (172) (37) (585,304)

42

15.

Intangibles assets, net


Parent Company Average Amortization rate% p.a.

03/31/11 Accumulated amortization

12/31/10 Accumulated amortization

Cost Business acquisitions Goodwill Goodwill (a) Others intangibles Software Rights of use of commercial area Other intangible assets System Deployment Project Development Project Brands Client portfolio

Net

Cost

Net

2,227,807

(149,548)

2,078,259

435,664

(149,548)

286,116

20 20 20 20 33 30 10

97,753 673 10,520 12,293 10,259 2,758 9,403 143,659 2,371,466

(49,384) (264) (839) (12,095) (6,872) (206) (2,117) (71,777) (221,325)

48,369 409 9,681 198 3,387 2,552 7,286 71,882 2,150,141

94,287 673 820 12,293 10,259 2,758 9,403 130,493 566,157

(45,680) (231) (711) (12,090) (6,045) (184) ( 1,880) (66,821) (216,369)

48,607 442 109 203 4,214 2,574 7,523 63,672 349,788

Consolidated Average Amortization rate% p.a.

03/31/11 Accumulated amortization

12/31/10 Accumulated amortization

Cost Business acquisitions Goodwill Goodwill (a)

Net

Cost

Net

2,317,436

(157,509)

2,159,927

512,298

(149,548)

362,750

Others intangibles Software Rights of use of commercial area Other intangible assets System Deployment Project Project Development Brands Client portfolio Transactions with Hospitals

20 20 20 20 33 3.3 10 50

102,093 815 10,555 12,293 10,260 14,955 9,403 1,198 161,572 2,479,008

(51,017) (305) (839) (12,095) (6,872) (341) (2,117) (200) (73,786) (231,295)

51,076 510 9,716 198 3,388 14,614 7,286 998 87,786 2,247,713

97,671 673 820 12,293 10,260 2,758 9,403 133,878 646,176

(46,875) (231) (711) (12,090) (6,045) (184) ( 1,880) (68,016) (217,564)

50,796 442 109 203 4,215 2,574 7,523 65,862 428,612

(a)

Net value of goodwill from acquisition of business combination: 43

Parent Company 03/31/11 Elkis e Furlanetto - Centro de Diag. e Anlises Clnicas Ltda. Elkis e Furlanetto- Laboratrio Mdico S/C Ltda. Laboratrio Pasteur Patologia Clnica S/S Ltda. Laboratrio Frischmann Aisengart Ltda. Image Memorial Ltda. Laboratrio Alvaro Ltda. Lab. Louis Pasteur Patologia Clnica Ltda. LabPasteur Laboratrio Imuno Ltda. MedLabor Clnica Mdica Vita Ltda. Laboratrio Atalaia Ltda. Exame Laboratrios de Patologia Clnica Ltda. Med Imagem Ultra-Sonografia e Radiologia Ltda. Clnica Radiolgica Brafer Ltda. Cedimax Diagnsticos Mdicos Ltda. Clnica Radiolgica Clira Ltda. Digirad Diagnsticos Mdicos Ltda. Maxidiagnosticos Centro de Diagnsticos por Imagem de Cuiab Ltda. Centro Mdico de Diagnstico Laboratorial Ltda. Centro Mdico Imagenologia Ltda. Ressonncia Magntica Cuiab Ltda. Unidade Cearense de Imagem Ltda. CientficaLab Produtos Laboratoriais e Sistemas Ltda. MD1 Diagnsticos S.A CDPI - Clinica de Diagnstico por Imagem CRMI Clinica de Ressonncia e Multimagem Pro Echo Cardiodata Servios Mdicos Instituto de Endocrinologia e Medicina Nuclear do Recife Ltda. (CERPE) Proscan Diagnosticos Imagem S/A (a) Pro Echo Cardiodata Serv. Mdicos Ltda. (a) Clinica de Ressonncia e Multi Imagem Ltda. (a) 12/31/10

Consolidated 03/31/11 12/31/10

1,703 58 2,226 11,522 12,252 18,595 7,231 3,723 2,928 16,702 39,807 31,148 7,694 9,865 7,303 7,959 21,100 8,831 4,385 68,308 1,713,884 46,521 29,821 4,693 2,078,259

1,703 58 2,226 11,522 12,252 18,595 7,231 3,723 2,928 16,702 39,807 31,148 7,694 9,865 7,303 7,959 22,478 10,229 4,385 68,308 286,116

1,703 58 2,226 11,522 12,252 18,595 7,231 3,723 2,928 16,702 39,807 31,148 7,694 9,865 7,303 7,959 21,100 8,831 1,855 4,385 68,308 1,713,884 46,521 29,821 4,693 65,936 1,951 11,012 914 2,159,927

1,703 58 2,226 11,522 12,252 18,595 7,231 3,723 2,928 16,702 39,807 31,148 7,694 9,865 7,303 7,959 22,478 10,229 1,855 4,385 68,308 74,779 362,750

(a)

Goodwill previously recorded by MD1 legal entities

44

Changes in cost

Parent Company Changes in the quarter Acquisition of subsidiary

12/31/10 Business acquisitions - Goodwill Goodwill

Additions

Write off

03/31/11

435,664

1,794,919

(2,776)

2,227,807

Others intangibles Software Rights of use of commercial area Other intangible assets System deployment project Project developments Brands Client portfolio

94,287 673 820 12,293 10,259 2,758 9,403 130,493

3,466 9,700 13,166

97,753 673 10,520 12,293 10,259 2,758 9,403 143,659

566,157

1,808,085

(2,776)

2,371,466

Consolidated Changes in the quarter Acquisition of subsidiary

12/31/10 Business acquisitions - Goodwill Goodwill

Additions

Write off

Transfers

Others

03/31/11

512,298

21,836

1,794,919

(2,776)

(13,395)

4,554

2,317,436

Others intangibles Software Rights of use of commercial area Other intangible assets System deployment project Project developments Brands Client portfolio Transactions with Hospitals

97,671 673 820 12,293 10,260 2,758 9,403 133,878

958 144 35 1,137

3,464 9,700 13,164

12,197 1,198 13,395

(2) (2)

102,093 815 10,555 12,293 10,260 14,955 9,403 1,198 161,572

646,176

22,973

1,808,083

(2,776)

4,552

2,479,008

45

Changes in accumulated amortization


Parent company Changes in the quarter Acquisition of subsidiary

12/31/10 Business acquisitions - Goodwill Goodwill Others intangibles Software Rights of use of commercial area Other intangible assets System deployment project Project developments Brands Client portfolio

Additions

Write off

03/31/11

(149,548)

(149,548)

( 45,680) ( 231) ( 711) ( 12,090) ( 6,045) ( 184) ( 1,880) ( 66,821)

( 3,704) ( 33) ( 128) ( 5) ( 827) ( 22) ( 237) (4,956)

(49,384) ( 264) ( 839) ( 12,095) ( 6,872) ( 206) ( 2,117) ( 71,777)

(216,369)

(4,956)

(221,325)

Consolidated Changes in the quarter Acquisition of subsidiary

12/31/10 Business acquisitions - Goodwill Goodwill Others intangibles Software Rights of use of commercial area Other intangible assets System deployment project Project developments Brands Client portfolio Transactions with Hospitals

Additions

Write off

03/31/11

(149,548)

(7,961)

(157,509)

(46,875) (231) (711) (12,090) (6,045) (184) (1,880) (68,016)

(373) (34) (407)

(3,769) ( 40) ( 128) ( 5) ( 827) ( 157) ( 237) ( 200) (5,363)

(51,017) (305) (839) (12,095) (6,872) (341) (2,117) (200) (73,786)

(217,564)

(8,368)

(5,363)

(231,295)

The additions to amortization presented in the changes in the quarter were registered to general and administrative expenses and to cost of goods sold and services rendered. Goodwill balances were submitted to impairment tests at the end of last financial year. During the quarter there were no events that required their fair values to be revised. 46

16. Suppliers
Parent Company 03/31/11 Domestic suppliers Foreign suppliers 35,943 10,638 46,581 12/31/10 35,620 13,378 48,998 Consolidated 03/31/11 69,988 10,638 80,626 12/31/10 45,139 13,378 58,517

17. Loans and financing


Parent Company 03/31/11 Local currency Promissory Notes (a) Bank loans Leases agreements in local currency Equipment financing 12/31/10 Consolidated 03/31/11 12/31/10

310,969 114,651 14,139 -

302,142 17,197 15,231 -

310,969 124,891 34,653 204

302,142 20,592 16,681 225

Foreign currency Bank loans (b) Equipment financing Leases of imported equipment Notes (Senior Notes) (c)

312,582 469 34,678 787,488

310,547 617 39,579 685,313 685,313 (331,148) 354,165

312,582 469 43,058 48,570 875,396 (1,489) 873,907 (453,377) 420,530

310,547 617 40,140 48,638 739,582 (1,577) 738,005 (335,867) 402,138

Transaction costs (issue of Notes) (d)

787,488

Current liabilities Noncurrent liabilities

(437,236) 350,252

The bank loan and financing agreements do not have any restrictive clauses (covenants) relating to the non compliance with ratios.

47

(a) On December 10, 2010 the Company issued 300 Commercial Promissory Notes, related to the 1st issue for public distribution with restricted placement, under the terms of Securities and Exchange Commission Instruction (CVM) number 476, dated January 16, 2009, as amended (CVM Instruction 476 and Restricted Offer, respectively) for the unit face value of R$1,000,000 (One million reais) and all maturing on December 5, 2011. Interest is due on the unit face value, equivalent to the accumulated variation of 100% of the daily DI rate variation plus a fixed rate (spread) of 1.10% per annum during the first 180 days from the issue date and, in the event no redemptions of the Promissory Notes occur within the first 180 days from the issue date, 1.20% per annum from the 180th day until the maturity date. The Promissory Notes have clauses determining maximum indebtedness and leverage levels, based on quarterly consolidated information. At the March 31, 2011, the Company had complied with the contractual terms. (b) In order to obtain resources to finance the public offer to repurchase notes, stated in item (c) of this Explanatory Note, on December 16, 2010, the subsidiary DASA Finance Corporation assigned the total balance of the loan that it had with the Company to Banco Ita BBA (NY branch). The balance of this debt at March 31, 2011 was R$ 312,582, adjusted during 2010 to the present value for the amount R$ 66,164, recorded to financial expenses, given the probability of the debt repurchase. (c) the Board of Directors meeting held on May 21, 2008 approved the issuance of notes (Senior notes) by the overseas subsidiary, DASA Finance Corporation, for the purpose of raising cash funds that shall primarily be used to finance expansion of the Companys activities. The issuance of notes was completed on May 29, 2008 in the amount of US$ 250 million, which mature in May 2018, remunerated at interest of 9.45% p.a. The interest is paid semi-annual, on May 29 and November 29 of each year. Both the principal amount and the interest are guaranteed unconditionally and irrevocably by the Company. The notes were placed exclusively abroad. In the meeting held on November 11, 2010, the Company Board of Directors approved the offer to acquire part and/or all of current Notes by its wholly owned subsidiary Dasa Finance Corporation, as well as the re-negotiation of certain covenants and, also authorized management to adopt all measures to obtain funding instruments that improve the indebtedness profile of the Company.

The final result of the Acquisition Offer was adhesion by the title holders, together, for the amount of US$217,820,000 (two hundred and seventeen million, eight hundred and twenty thousand dollars), representing around 87.13% (eighty seven point thirteen percent) of the total value of the current Notes. According to the conditions established in contract for the remaining balance of the Notes, the anticipated redemption option of this debt is exclusively that of DASA Finance Corporation, as from 2013. The premium paid on the repurchasing of the Notes was R$57,030 registered to financial expenses.

48

(d) Transaction costs will be amortized to profit or loss on a straight line basis, until the notes are settled, as follows:

Consolidated 2011 2012 2013 2014 2015 to 2018 ( ( ( ( ( 157) 208) 208) 208) 708)

(1,489)

49

Parent Company Amount in Reais

Type Local currency Promissory Notes Bank loans

Banks

Maturity

Average interest rate

Guarantors

Bco Ita Miscellaneous

310,969 114,651

2011 2011 a 2013

CDI + 1.1% p.a. TJLP a 111.8% for CDI CDI + 1.18 % p.a. to CDI + 2.10 % p.a.

(1) (2)

Leases

Miscellaneous

14,139

2015

(2)

Type Foreign currency Bank loans Equipment financing

Financial institutions/ Suppliers

Amount in US$

Amount in Reais

Maturity

Average interest rate

Guarantors

Bco Ita G.E.

191,921 287

312,582 469

2018 2012

12.8% p.a. VC+6.5% to 8.3% p.a. VC+7.20% to 9% p.a.

(2)

Leases

Miscellaneous

21,292

34,678

2016

Consolidated Amount in Reais

Type Local currency Promissory Notes Bank loans

Banks

Maturity

Average interest rate

Guarantors

Bco Ita Miscellaneous

310,969 124,891

2011

CDI + 1.1% p.a.

(1) (2) (3)

2011 a 2016 TJLP to 115% for CDI CDI + 1.18 % p.a. to CDI + 2.10 % p.a. 5.0 % p.a.

Leases Equipment financing

Miscellaneous Miscellaneous

34,653 204

2015 2013

(2) -

Type Foreign currency Bank loans

Financial institutions/ Suppliers

Average interest Amount Amount Guarantors in US$ in Reais Maturity rate

Type

Financial institutions/ Suppliers

Bco Ita

191,921 312,582

- 312,582

2018

12.8% p.a. VC+7.5% to 8.3% p.a. VC+7.20% to 9% p.a. 8.75% p.a.

Equipment financing

G.E.

288

469

469

2012

Leases

Miscellaneous

26,437

43,058

43,058

2016

(2)

Notes (Senior Notes)

29,821

48,570

(1,489)

47,081

2018

(3)

(1) DASA Real Estate Empreendimentos Imobilirios Ltda. (2) Promissory Note of 125% of the contractual amount in the Companys name. (3) Diagnsticos da Amrica S.A. 50

Loans and financing classified as noncurrent liabilities will be paid as follows:

Parent Company 2012 2013 2014 2015 to 2018 Transaction cost long term 14,809 13,726 7,161 314,556 350,252

Consolidated 24,673 21,595 11,756 363,788 (1,282) 420,530

The company granted sureties on behalf of its subsidiaries as follows: CientficaLab Produtos Lab. e Sistemas Ltda.

Banco Alfa S.A. Banco Ita S.A. CSI Latina Financial Banco Pottencial Banco Modal Emisso de Bond

1,532 15,000 220 228 48 47,201 64,229

DASA Finance Corporation

18. Salaries, social security charges and vacation payable


Parent Company 03/31/11 Salaries payable Social Security charges payable Provision for vacation pay and 13th month salary and social security charges Provision for profit sharing Others 8,971 7,284 29,009 21,105 726 67,095 12/31/10 8,343 9,094 25,024 17,696 615 60,772 Consolidated 03/31/11 12,679 10,359 40,922 22,036 1,067 87,063 12/31/10 10,028 10,576 29,753 17,696 680 68,733

51

19. Installment Taxes


Parent Company End of Amortization PPI - REFIS Municipal (a) Program PAES (b) ISS Pref.Munic. de Barueri (c) REFIS IV Federal (d) Other 2011 2013 2011 2020 03/31/11 604 4,055 5,914 1,015 11,588 Current liabilities Noncurrent liabilities (4,564) 7,024 12/31/10 850 4,435 642 5,978 1,088 12,993 (5,289) 7,704

Consolidated End of Amortization PPI - REFIS Municipal (a) Program PAES (b) ISS Pref.Munic. de Barueri (c) REFIS IV Federal (d) REFIS IV Federal MD1 (f) REFIS Estadual MD1 (g) ISS CERPE (e) Other 2011 2013 2011 2020 2027 2029 03/31/11 604 4,055 18,256 1,684 7,214 2,295 1,975 36,083 Current liabilities Noncurrent liabilities (6,951) 29,132 12/31/10 850 4,435 884 18,241 2,154 1,241 27,805 (7,412) 20,393

(a) On August 29, 2006, the Company joined the PPI - Installment Incentive Program, created by the government for the city of So Paulo with the enactment of Law 14129, dated January 11, 2006, and regulated by Decree 47165 dated April 6, 2006. The tax debts, which were part of the Tax Recovery Program (REFIS), created by Law 13092 dated December 7, 2000, to which the Company adhered on January 26, 2001, were included in the PPI program. The debt included in the PPI program shall be amortized in 60 monthly installments, plus interest at the SELIC rate. The amortizations shall be made until August 2011, and the Company does not make payments based on gross revenue, nor did it use, and will not use tax credits to amortize fines and interest. (b) On July 29, 2003, the Company adhered to the PAES program (Law 10684), declaring tax debts related to PIS and COFINS which were being discussed judicially. The total debt is divided into 120 monthly installments and updated using the long-term interest rate (TJLP). Payment of these installments extends to June 2013, considering that the 52

Company does not make any payment based on gross revenue nor did it use, and will not use tax credits to amortize fines and interest. (c) On September 25, 2009 the company adhered to a tax installment program created by Barueris local authority. The Company opted to pay the ISSQN tax debt related to the period from September 2007 to December 2008, which had been included in the ordinary installment enrolled on January 29, 2009, in 18 monthly installments, plus interest equivalent to the SELIC. (d) Federal debts special installments program - Law 11.941/09 (REFIS IV) A new Installment program (REFIS IV) for federal Debts was created in connection with the enactment of Law 11941 comprising all debts under Brazilian Federal Tax Authorities (SRF, Procuradoria-Geral da Fazenda Nacional- PGFN e Instituto Nacional da Seguridade Social - INSS), declared or not, included or not among the debts recognized by the Brazilian IRS, whether executed or not, including those which were the object of a prior installment program. Given the favorable conditions of this new Program, on November 27, 2009, the company adhered to this program, and made the first installment payment under the conditions stated in the legislation. At March 31, 2010, the Company recognized to P&L the effects from adhesion to the program, which comprise: (i) Tax debts not previously recognized by the Company; and (ii) current installments transferred to the program. The effect on the Companys P&L amounted to a loss of R$ 670, of which R$ 633 was a gain recognized to other operational income (expense) and R$ 1,303 as a loss, recognized as interest expense. Such indebtedness was recognized in the quarter for the amount of R$ 7,454, as current ongoing installments, and R$ 2,862 as tax debts not previously recognized by the Company, both net of the benefits derived from the reductions established by the program. The company also included in the installment program the tax debts that were the responsibility of the former owners of the companies acquired. . These debts have still not been recorded as installment taxes, given that the review process with the former owners has not been concluded. This process should result in the redemption, in proportion to the debts assumed by the prior management, of the financial investments which provide collateral for the settlement of liabilities assumed at the time of acquiring the companies (explanatory note no. 20). Adhesion to the program has been confirmed by the Brazilian IRS and, until the debt consolidation is finalized, the company will continue to make the minimum installment payments required by the authorities. On February 4, 2011, Joint Regulation nr. 2, of February 3, 2011, was published in the Federal Gazette, which established the schedule for the consolidation phases to be observed by the entities that had adhered to the installment plan, which are programmed for payment from March to July 2011.

53

(e) On March 21, 2005, CERPE joined the Sector Tax Recuperation Program PREFIS, instituted by Municipal Law 17029, of September 22, 2004 of the Recife Municipal. The company opted to divide the ISSQN debts related to the period from January 1988 to December 2003, to be paid in installments equivalent to the minimum of 0.5% of the monthly gross income. Later, on June 17, 2008 the company joined the Tax Recuperation Program PREFISC, instituted by Municipal Law 17.240 of July 7, 2006, from the same Municipal, with the objective of re-dividing the debts already being paid in installments through PREFISC. This new installment program foresees a reduction of 60% in the value of the principal corrected debt and the total interest and fines and payment of 20% of the existing debt balance, and the remaining balance in 240 monthly installments plus interest of 1% per annum and annual monetary correction using the IPCA. On November 30, 2009, the company paid the 20% debt balance of R$2,955, formalizing the PREFISC installment payments. (f) Federal debts special installments program - Law 11.941/09 (REFIS IV) A new installments program (REFIS IV) for federal Debts was created in connection with the enactment of Law 11941 comprising all debts under Brazilian Federal Tax Authorities (SRF, Procuradoria-Geral da Fazenda Nacional- PGFN e Instituto Nacional da Seguridade Social - INSS), declared or not, included or not among the debts recognized by the Brazilian IRS, whether executed or not, including those which were the object of a prior. installment program. Given the favorable conditions of this new Program, on November 27, 2009, the company adhered to this program, and made the first installment payment under the conditions stated in the legislation. On May 31, 2010 the Company recognized to profit or loss the effects derived from adhesion to the program, which includes the current payments transferred to the program. The debts have been segregated between the companies Pro Echo, LSF, MI and CDPI, as at May 31, 2010, and refer to tax debts that had not been recognized by the Company, previously to the companies Pro Echo, MI and CDPI as follows: R$212, R$ 189 and R$68 respectively; only the companies LSF, MI and CDPI report current payments which had been transferred to the program, for the amounts of R$387, R$150 and R$934 respectively. Adhesion to the installment plan was executed with the Brazil Federal Revenue Office and, until the debt is consolidated,, the Company will continue to make the monthly minimum payments. On February 4, 2011, Joint Regulation nr. 2, of February 3, 2011, was published in the Federal Gazette, which established the schedule for the consolidation phases to be observed by the entities that had adhered to the installment plan, which are programmed for payment from March to July 2011. (g) On October 29, 2009, the Rio de Janeiro Governmental Finance Office published Decree nr 42097, which established the payment of ICMS due on the import of hospital-medical equipment, for which there is no similar equipment available in Brazil, at the time of the import, made between January 01, 2002 and April 15, 2008, by a hospital-medical company located within the state of Rio de Janeiro, and included as part of its fixed asset. Thus, based on advice from its legal assessors, on March 22, 2010 the subsidiaries Pro Echo, CDPI and CRMI filed a request with the State of Rio de Janeiro Governmental Health 54

Office to compensate the amounts stated on the tax assessment notice for the ICMS legislation, issued against these entities, with medical services to be rendered to the population, under the terms stated in the Decree. The amounts shall be distributed among the entities of the group, as follows: R$ 653 for Pro Echo, R$4,805 for CDPI and R$1,755 for CRMI. The request is in process of homologation by the State of Rio de Janeiro Governmental Health Office.

20. Accounts payable from the acquisition of subsidiaries


Accounts payable from the acquisition of subsidiaries refer to the amounts due to the previous owners for the acquisition of shares or quotas representing the capital of these entities. The debts are updated in accordance with the contractual terms, and following payment schedule:
Parent Company Maturity date 03/2011 to 05/2016 05/2010 to 11/2014

Interest rate IPCA-IGPMSelic

03/31/11

12/31/10

Not guaranteed by financial investments

23,518

26,895

Guaranteed with financial investments

(a)

58,317 81,835

57,856 84,751 (30,932) 53,819

Current liabilities Noncurrent liabilities

(27,188) 54,647

Consolidated Maturity date 03/2011 to 05/2016 05/2010 to 12/2016

Interest rate IPCA-IGPMSelic

03/31/11

12/31/10

Not guaranteed by financial investments

23,518

26,895

Guaranteed with financial investments

(a)

67,294 90,812

65,121 92,016 (30,932) 61,084

Current liabilities Noncurrent liabilities

(27,188) 63,624

(a) Corrected at the rate of 100.54% of CDI in funds administered by financial institutions. 55

The installments classified to noncurrent liabilities fall due as follows:


Maturity date 2012 2013 2014 2015 2016 Total Parent Company 24,616 16,053 12,140 142 1,696 54,647 Consolidated 24,616 16,053 12,140 142 10,673 63,624

21. Others accounts payable and provisions


Parent Company 03/31/11 Rentals Third Party services Provision for specialized medical services Franchise commission payable Other accounts payable 4,044 11,540 5,696 925 33,418 55,623 Current liabilities Noncurrent liabilities ( 55,623) 12/31/10 4,122 10,662 5,842 978 24,257 45,861 ( 45,861) Consolidated 03/31/11 2,879 14,426 5,696 949 61,338 85,288 (77,263) 8,025 12/31/10 4,365 10,026 5,842 999 24,815 46,047 (46,047) -

22. Provision for contingencies


Parent Company 03/31/11 Judicial deposit (1,275) (3,152) (27) (21,733) (26,187) 12/31/10

Provision (a) ICMS on imports (b)Provision for labor contingencies (c)Provision for civil contingencies (d)Provision for tax contingencies 93,294 4,253 2,812 37,574 137,933

Net 92,019 1,101 2,785 15,841 111,746

Net 81,664 3,310 2,524 15,428 102,926

56

Consolidated 03/31/11 Judicial deposit (1,275) (3,152) (27) (21,809) (26,263) 12/31/10

Provision (a) ICMS on imports (b)Provision for labor contingencies (c)Provision for civil contingencies (d)Provision for tax contingencies 93,294 4,702 6,180 47,300 151,476

Net 92,019 1,550 6,153 25,491 125,213

Net 81,664 3,682 2,524 15,429 103,300

(a) ICMS on imports The Company, based on the opinion of its legal advisors, has not paid ICMS on the imports of supplies and equipment for use in the rendering of its services, since February 2000, since there are ongoing discussions as to whether the Company is an ICMS taxpayer for these transactions. For ICMS payables over goods and equipment import transactions done up to the promulgation of Constitutional amendment 33 as of December 11th, 2001, the external legal advisors understand that losses probabilities are remote, given that for the amounts of ICMS payables generated between the Constitutional Amendment 33 and the issuance of the supplementary law 114 as of December 16th , 2002 were attributed a remote loss risk probability. At last, after the issuance of the supplementary law 114 as of December 16th 2002, the external legal advisors understand that loss risk probabilities are probable. At March 31, 2011, the provision recorded for imports made as from January 1, 2003 is R$ 93,294 (R$ 82,939 at December 31, 2010) for the subsidiaries and on consolidated, with judicial deposits for the amount of R$ 1,275. (b) Provision for labor contingencies At March 31, 2011, the company is party to 639 labor actions (566 at December 31, 2010). The Company recorded a provision, based on the historic percentage of losses for processes representing probable risks. (c) Provision for civil contingencies At March 31, 2011, the company is party to 719 civil administrative and judicial actions (596 at December 31, 2010). The Company recorded a provision, based on the historic percentage of losses for processes representing probable risks (d) Provision for tax contingencies Provisions for tax contingencies relate to: (i) questionings for increases in rates; (ii) calculation base; and (iii) unconstitutionality of collection. Such questionings refer basically to PIS, COFINS, INSS and FGTS contributions. 57

Changes in provision
Parent Company 12/31/10 Opening balance ICMS on imports Provision for labor contingencies Provision for civil contingencies Provision for tax contingencies 82,939 3,559 2,551 37,111 126,160 Additions 7,087 4,898 300 2 12,287 Change in the period Utilization and/or reversal (4,204) (39) (4,243) Monetary restatement 3,268 461 3,729 03/31/11 Closing balance 93,294 4,253 2,812 37,574 137,933

Consolidated 12/31/10 Additions Opening balance ICMS on imports Provision for labor contingencies Provision for civil contingencies Provision for tax contingencies 82,939 3,932 2,551 37,187 126,609 7,087 4,898 300 2 12,287 Additions by incorporation 75 3,368 9,650 13,093 Change in the period Utilization and/or reversal (4,203) (39) (4,242) Monetary restatement 3,268 461 3,729 03/31/11 Closing balance 93,294 4,702 6,180 47,300 151,476

There are other lawsuits that have been classified by the legal advisors as representing possible risks, which can not be measured with reasonable accuracy. The amounts involved are not regarded as relevant and thus no provision has been registered, given that Brazilian accounting practices do not require such. On July 15, 2010, three tax assessment notices were issued by the State of So Paulo Governmental Financial Office against the subsidiary CientificaLab. The infractions to ICMS rules (RICMS), registered in the assessments refer to the period 2006 to 2008, for the corrected amount of R$7,384. Since it is refers to the period , for the prior management of Cientificalab is partially responsible (company acquired on 07/19/2007), they were immediately notified, in accordance with the acquisition agreement, in order to decide the external legal consultancy for the defense against the assessments. As informed in Explanatory Note 9, part of the acquisition value for Cientificalab was retained to ensure payment of any liabilities or contingencies that refer to the period of the former management. These tax assessments were assessed by the legal consultants as representing a possible risk.

58

23. Shareholders equity (parent company)


a. Capital
In the Ordinary General Meeting held on January 5, 2011, an increase in the Company capital stock was approved for the amount of R$1,832,042,519.75 (one billion, eight hundred and thirty two million, forty two thousand, five hundred nineteen reais and seventy five cents), through the issue of 82,191,275 (eighty two million, one hundred and ninety one thousand, two hundred seventy five) ordinary shares, subscribed and paid-up with shares in MD1 Diagnsticos S.A. and incorporated to the Companys equity according to the Protocol and Justification for Incorporation of Shares. After the incorporation of shares approved in the meeting held on January 5, 2011, the Companys capital was R$2,234, represented by 311,803,015 (three hundred and eleven million, eight hundred and three thousand and fifteen) ordinary shares, all nominatives, bookentry and with no par value, with the exclusion of the right of preference granted to the Companys current shareholders to subscription, according to the rulings in art. 172, Law 6404, of December 15, 1976, and under the terms of art. 9 of the Companys Bylaws. The authorized limit for the capital increase, irrespective of statutory reform, through the issuance of new shares, is 560,000,000 (five hundred and sixty million) ordinary shares. Through a resolution of the Board of Directors, and within the limits authorized in the By-laws, the Company can increase the capital irrespective of statutory reform. The Board of Directors will fix the terms for the share issuance, including the price and time frame for payment. The issuance of shares and debentures convertible into shares or a subscription bonus may be performed, at the Board of Directors discretion, without right of first refusal or a reduction in the time frame determined in 4 of Article 171 of Law 6404/76, the placement of which is through the sale on the stock exchange or public offering, or even through the exchange for shares in a takeover bid, according to the terms established in law, within the limits of the authorized capital. Within the limits of the authorized capital and in accordance with the Plan approved at the General Meeting, the Board of Directors may authorize the Company to grant a share purchase option to its management and employees, and to the management and employees of the other companies that are directly or indirectly controlled by the Company, without right of first refusal for the shareholders.

59

b. Treasury shares
During the Boards meeting held on April 9, 2010, the acquisition of up to 1,000,000 (one million) ordinary, nominal shares with no par value, issued by the Company, was approved to remain in treasury, for subsequent cancellation or disposal. The purpose of this acquisition is to invest funds available in the capital reserve account arising from the goodwill on shares issued, without a capital reduction. This acquisition is valid for a maximum of 365 (three hundred and sixty five) days, as from April 12, 2010, and therefore will fall due on April 11, 2011.

At March 31, 2011, the treasury shares comprised the following:

Operation breakdown

Number of Shares (unit) 459,035 459,035

Value

Average price per share 7,028 7,028 15.31 15.31

Purchase Balance on March 31, 2011

60

24. Income tax and social contribution


The reconciliation between the expense calculated based on the combined tax rates and the income and social contribution tax expense charged to profit or loss is demonstrated below:

Parent Company 03/31/11 03/31/10

Consolidated 03/31/11 03/31/10

Profit before income contribution taxes Combined tax rate

and

social 63,912 34% 49,701 34% 68,648 34% 53,896 34%

Income tax and social contribution: at the combined tax rate Permanent additions Bonus Subsidiary foreign income Other additions Permanent exclusion Equity income Taxes in installments - REFIS IV Others adjustments Other

(21,730)

(16,898)

(23,340)

(18,325)

(60) (47)

(322) (175)

(60) (47)

(322) 1,432 (175)

5,175 -

2,934 672

1,033

(2,667) (19,329)

1,088 (12,701) (6,716) (5,985) -26%

562)

(540) (16,897) (6,716) (10,181) -31%

(24,009) (15,078) (8,931) -35%

Income and social contribution taxes Deferred taxes Effective tax rate

( 5,657) (13,672) -30%

61

25. General and administrative expenses

Parent Company
03/31/11 03/31/10

Consolidated
03/31/11 03/31/10

Personnel expenses Profit sharing plan Services and utilities Depreciation and amortization Taxes Sundry provisions Provision for doubtful accounts (Reversal) General expenses

28,674 3,399 13,006 6,792 603 2,103 (1,651) 8,175 61,101

23,149 8,400 11,373 6,363 56 4,902 2,328 3,520 60,091

39,324 4,579 20,132 8,882 1,498 2,235 1,418 11,952 90,020

25,752 8,400 13,059 6,862 148 4,238 2,259 3,966 64,684

26. Financial instruments


There were no changes in the quarter related to the ranking criteria, risk management and valuation and registration of the financial instruments. See explanatory note 27 to the financial statements for the year ended on December 31, 2010 for a complete description of this matter. The table below illustrates the Companys and its subsidiaries financial instruments. The fair values of financial instruments stated at fair value through profit and loss, do not vary significantly from the book values reported in the balance sheet of the parent company and on consolidation.
Parent Company 03/31/2011 Fair value through profit and loss 155,448 58,318 213,766 35,419 35,419 12/31/2010 Fair value through profit and loss 280,478 57,856 338,334 38,691 38,691

Description Cash and cash equivalents Marketable securities Accounts receivable from clients Assets Accounts payable to suppliers Bank loan and financing Debentures Derivatives Other accounts Liabilities

Amortized cost 361,461 361,461 46,581 787,488 55,624 889,693

Amortized cost 309,926 309,926 48,998 685,313 69,031 45,861 849,203

62

Consolidated 03/31/2011 Fair value through profit and loss 247,766 89,276 337,042 35,419 35,419 12/31/2010 Fair value through profit and loss 328,670 86,555 415,225 38,691 38,691

Description Cash and cash equivalents Marketable securities Accounts receivable from clients Assets Accounts payable to suppliers Bank loan and financing Debentures Derivatives Other accounts Liabilities

Amortized cost 466,248 466,248 80,626 873,907 85,288 1,039,821

Amortized cost 357,070 357,070 58,517 738,005 69,031 46,047 911,600

As of March 31, 2011 the Company had the following swap operations: Financial Instruments - Derivatives payable
Market values (accounting) Marktet value net Gain (loss) Values in mark Currency/ cos -to-market index rate Range of maturity date Nocional Trading market

Company Estrategy

Index rate asset

Asset

Index rate liability

Liability

Counter part

Derivatives for debts protection, not assigned at fair values

Swap - Hedge Exchange Rate

Dollar + 8.75% p.a. Dollar + 8.75% p.a.

34,413

106% of CDI 106% of CDI 78.55% of CDI Pre rate

(45,506)

(11,093)

(16,412)

5,319

Dollar

05/2008 to 05/2013 ** 05/2008 to 05/2013 ** 04/2010 to 03/2016 * 02/06/2011

21,875

Counter

Merril Lynch Credit Suisse Banco HSBC Banco Ita

Swap - Hedge Exchange Rate

51,619

(64,970)

(13,351) (20.867)

7,516

Dollar

32,813

Counter

Swap - Hedge Exchange Rate NDF- Hedge Exchange Rate

Dollar Dollar

37,791 252,609

(42,233) (259,142)

(4,442) (10.532) (6,533) (6.470)

6,090 (63)

Dollar Dollar

24,438 155,937

Counter Counter

376,432

(411,851)

(35,419) (54.281)

18,862

Short term portion in current liabilities

(18,599)

Noncurrent liabilities
* Monthly Maturity Date **Semiannually Maturity Date

(16,820)

The Company recognized gains and losses with its derivative instruments. However, since they are protection derivatives, such gains and losses minimized the impacts arising from exchange rate variation and from the interest rate variation incurred in the respective protected indebtedness. In the March 31, 2011 and 2010, the derivative instruments generated the following impacts on the consolidated result: 63

Income (Expenses) Derivatives Risk Exchange rate Interest Adjustment Fair Value Exchange rate Interest Adjustment Fair Value Exchange rate Interest Adjustment Fair Value Exchange rate Interest Adjustment Fair Value Exchange rate Interest Adjustment Fair Value Account Financial Revenues/ (Financial Expenses) Financial Revenues/ (Financial Expenses) Financial Revenues / (Financial Expenses) Financial Revenues / (Financial Expenses) Financial Revenues / (Financial Expenses) 03/31/11 03/31/10

Banco Votorantim Merril Lynch Credit Suisse Banco HSBC (SWAP) Banco Ita (NDF)

( 2,529) ( 3,711) ( 1,097) ( 6,533)

13)

( 339) 335 -

(13,870)

17

Sensitivity analysis In accordance with CVM Instruction 475/08, the Company carried out the sensitivity analysis for the main risks to which its financial instruments (including derivatives) are exposed and which refer to the risks related to exchange and interest rate variations, as follows: Exchange rate variation The market value was calculated on the date of this quarterly information, based on projections of future quotations of the North-American dollar obtained from BM&FBovespa., In accordance with the aforementioned instruction, the stress percentages defined therein were considered for the scenarios. Based on the existing exposure (notional) and the aforementioned variations, simulations of the effects from the dollar devaluations on the quarterly information, by type of financial instrument, for two distinct scenarios are presented below:
Market value 03/31/2011

Contract
Swap contract - Merril Lynch Asset

Risk Dollars fall US$ Dollars fall US$ Dollars fall US$ Dollars fall US$

Exposure

Depreciation 25%

Depreciation 50%

Position Exchange Variation Swap contract - Credit Suisse Asset Position Exchange Variation Swap contract - HSBC Asset Position Exchange Variation NDF - Ita Asset Position Exchange Variation

21,875 32,813 24,438 155,937 235,063

34,413 51,619 37,791 252,608 376,431

(8,603) (12,905) (9,448) (63,152) (94,108)

(17,206) (25,810) (18,896) (126,304) (188,216)

64

Interest rate variation The market value was calculated on the date of this quarterly information, based on projections of future quotations for the maturity of principal sum and interest, obtained from BM&FBovespa. In accordance with the aforementioned instruction, the stress percentages defined therein were considered for the scenarios.

Considering that the scenario for exposure of the financial instruments indexed to variable interest rates at March 31, 2011 is maintained, the effects of an increase in the CDI on the quarterly information, by type of financial instrument, for two distinct scenarios are presented below:

Contract Swap Contract - Merril Lynch Liabilities Position - Interest Swap Contract - Credit Suisse Liabilities Position Interest Swap Contract - HSBC Liabilities Position Interest NDF - Ita Liabilities Position - Interest

Risk CDI Increase CDI Increase CDI Increase CDI Increase

Exposure

Market value 03/31/2011

Depreciation 25%

Depreciation 50%

21,875 32,813 24,438 155,937 235,063

(45,506) (64,970) (42,233) (259,142) (411,851)

(7,778) (11,763) 164 1,152 (18,225)

(14,917) (22,560) 316 2,270 (34,891)

27. Insurance coverage


The Companys policy is to contract insurance coverage for assets subject to risks for amounts considered to be sufficient to cover possible claims, considering the nature of its activity. The Company has insurance policies contracted from the main insurance companies in Brazil, which were determined based on advice from experts, and take into consideration the nature and the level of risk involved. The main insurance coverage is against fire (R$ 100,000), unearned profits (R$ 9,500), civil liability (R$ 1,000), civil liability of Officers and Administrators (R$ 50,000), windstorm and smoke (R$ 1,500), and electrical damages (R$ 1,500), for amounts considered sufficient to cover possible losses. The risk assumptions adopted, given their nature, are not part of the scope of the audit of the quarterly financial statements and, accordingly, were not audited by our independent auditors.

65

28. Related party transactions


The Companys By-laws require that any transaction, or set of transactions, which are equal to or greater than US$500,000 (five hundred thousand North-American dollars), between the Company and (i) its controlling shareholders, as defined in the New Market Listing Rules, (ii) any individual, including spouses or relatives up to the third grade, or companies that hold, directly or indirectly, the control of the Companys parent company, or (iii) any legal entity in which any of the controlling shareholders, directly or indirectly, including the spouses and relatives up to the third grade, hold investment interests, must be approved in the Board Meeting, by at least 75% of the members attending the meeting. For the periods ended March 31, 2011 and December 31, 2010 the company maintained operations included within its normal operational context with related parties, as shown below:

a.

Operations involving the Company and its subsidiaries


a.1 Total services rendered during the quarter ended March 31, 2011 between the Company and its subsidiaries A bad debt provision is not recorded for the existing amounts, and no guarantees are given or received for these transactions.

31 March 2011 Income Parent Company DASA

CientficaLab

DASA RE

Total

()
Cost of services provided Parent Company - DASA CientficaLab 2,388 2,388

()
156 156

()
276 276 432 2,388 2,820

66

31 December 2010 Income Parent Company DASA

CientficaLab

DASA RE

DASA FC

Total

()
Cost of services provided Parent Company - DASA CientficaLab 14,811 14,811

()
558 558

()
1,596 1,596

()
23,651 23,651 25,805 14,811 40,616

( ) amount related to property leases. ( ) amount related to clinical analysis services rendered. ( ) amount related to financial operations.

a.2 - Balances for accounts receivable and loans of materials at March 31, 2011 between the company and respective subsidiaries A bad debt provision is not recorded for the existing amounts and no guarantees are given or received for these transactions.
31 March 2011 Suppliers Parent Company DASA Trade accounts receivable Parent Company DASA CientficaLab Cientfica Lab DASA RE Total

974 974

252 252

78 78

330 974 1,304

Inventories - loans of materials CientficaLab

1,266 2,240

252

78

1,266 2,570

67

31 December 2010 Suppliers Parent Company DASA Trade accounts receivable Parent Company DASA CientficaLab Cientfica Lab DASA RE Total

2,280 2,280

227 227

76 76

303 2,280 2,583

Inventories - loans of materials CientficaLab

1,266

1,266

3,546

227

76

3,849

a.3 - Balance for advances for future capital increases at March 31, 2010 between the company and its subsidiaries.

Advances for future capital increases made by the Company amounting to R$ 11,000, for the purpose of a capital increase in the subsidiary CientificaLab Produtos Laboratoriais e Sistemas Ltda..

The parent Company and its subsidiaries did not register any transactions with the subsidiaries DASA Brasil Participaes Ltda. and DASA Empreendimentos e Participaes Ltda.

b.

Remuneration of key management personnel


The total remuneration of key management, including fixed remuneration and bonus paid during the 1Q11 was R$253 (R$ 342 in the 1Q10) to the members of the Board of Directors, and R$ 2,397 (R$ 3,077 in the 1Q10) for the statutory directors and contracted directors. The share based remuneration is disclosed in Note 30. no additional benefits are paid to the Companys key management.

68

c.

Associations
Instituto de Ensino e Pesquisa DASA (DASA Research and Training Institute). During the General Meeting held on June 1, 2010, the constitution of a non-commercial association was approved, denominated Instituto de Ensino e Pesquisa DASA, with the founder members being the Company and its subsidiary Cientificalab. The association will have the social objective: I to promote and execute, in the health area, educational, scientific and applied research and technological development activities; II to develop and implement environment protection and preservation programs. The Institute has not yet started to operate.

d.

Operations undertaken between the Company and other related parties.


- GN Servios de Sade S/S Ltda. A company controlled by Luiz Gasto Mange Rosenfeld, a member of the Company Board of Directors. It provides consulting services specialized in the medical area, which include his participation in the Companys Committees and Working Teams, as designated by the Board. A total of R$271 was paid in the first quarter of 2011 for these services. The contract is valid from April 29, 2010 to November 30, 2011. After the initial period, it can be renewed for subsequent periods of one year, provided there is no written communication from either of the parties, to the contrary, and, at least thirty days notice prior to the due date is given.

e.

Liabilities assumed from the acquisition of Instituto de Endocrinologia e Medicina Nuclear do Recife Ltda (CERPE)
According to the agreement to acquire CERPE by the parent company DA Participaes Ltda and the shareholders agreement executed on the closing date, November 19, 2010, the payment of a minimum dividend of R$21,352 was guaranteed. This amount has been deposited in a fixed income fund, as stated in Explanatory Note 21 and recognized in the acquisition balance sheet at October 31, 2010.

69

29. Leases
Local currency leases The Company has lease contracts for assets registered to permanent assets, with purchase options, for which the balance payable until 2016 amounts to R$ 34,653 on consolidation, Of this amount R$11,379 is classified to current liabilities and R$ 23,274 to noncurrent liabilities. The average term of the contracts is 36 months and they are bear interest rates varying from CDI + 1.18 % p.a. to CDI + 2.10 % p.a. The minimum future payments registered to loans and financings, see Explanatory Note 17, are segregated as follows:
03/31/2011 Parent Company Present value of minimum leases payments Up to one year One to five years More than five years
4,545 9,594 14,139

Consolidated Present value of minimum leases payments


11,418 22,874 361 34,653

Interest
561 1,184 1,745

Future minimum leases payments


5,106 10,778 15,884

Interest
1,409 2,822 39 4,270

Future minimum leases payments


12,827 25,696 400 38,923

12/31/2010 Parent Company Present value of minimum leases payments Up to one year One to five years
4,959 10,272 15,231

Consolidated Present value of minimum leases payments


5,589 11,092 16,681

Interest
612 1,268 1,880

Future minimum leases payments


5,571 11,540 17,111

Interest
689 1,369 2,058

Future minimum leases payments


6,278 12,461 18,739

The assets stated below are included in the fixed assets of the Company and its subsidiaries.

70

Net book values of the assets acquired through domestic financing leases:
Parent Company Consolidated

03/31/11
Machinery and equipment Furniture and fixture Vehicles IT equipment Construction in process Facilities IT system

12/31/10 12,746 294 528 4,409 10 78 159 18,224

03/31/11 24,588 310 603 4,464 10 76 194 30,245

12/31/10 14,736 321 608 4,872 10 78 216 20,841

12,338 283 472 4,030 142 10 76 17,351

Foreign lease The Company has leased equipment used to provide services, in accordance with the lease agreements with purchase options. The payment term is 84 months, and a grace period of six months was granted for the first installment payment, and the remaining installments are to be paid on a quarterly and semi-annual basis. The quarterly and semi-annual installments fixed in U.S. Dollars are translated into Reais at the dollar market exchange rate quotation ruling on the payment date, plus interest which varies from 7.20% per annum to 9.00% per annum, which amount to a balance payable by 2016 of R$ 43,058, of which R$ 14,828 is classified to current liabilities and R$ 28,230 to noncurrent liabilities.

71

Minimum future leases payments are segregated as follows:


03/31/2011 Parent Company Present value of minimum leases payments Up to one year One to five years More than five years 12,191 22,435 52 34,678 Present value of minimum leases payments 14,828 28,171 59 43,058 Consolidated

Interest 799 1,469 3 2,271

Future minimum leases payments 12,990 23,904 55 36,949

Interest 971 1,845 4 2,820

Future minimum leases payments 15,799 30,016 63 45,878

12/31/2010 Parent Company Present value of minimum leases payments Up to one year One to five years More than five years 13,309 26,217 53 39,579 Present value of minimum leases payments 13,783 26,304 53 40,140 Consolidated

Interest 871 1,717 3 2,591

Future minimum leases payments 14,180 27,934 56 42,170

Interest 902 1,717 3 2,622

Future minimum leases payments 14,685 28,021 56 42,762

The international financial lease contracts are included in the fixed assets as machinery and equipment, R$ 76,177 (R$ 79,218 at December 31, 2010) in the parent company and R$ 107,385 (R$ 80,826 at December 31, 2010) on consolidation.

72

30. Share based payments


The Company approved in the Extraordinary General Meeting held on March 25, 2008, the Option Plan for the Purchase of Shares for managers and employees of the Company (Former Plan). The Board of Directors, held a meeting on April 9, 2010, and, in accordance with the terms of article 20, paragraph XVIII of the Companys Bylaws (a) authorized the granting of share purchase options based on the Plan 2008; (b) elected the beneficiaries; (c) established the maximum limit for the number of shares which could be acquired by each beneficiary elected; (d) defined the minimum price for exercising the options; (e) determined the correction index for the exercise price; (f) imposed restrictions on the transference of shares acquired from exercising the options; and, finally, (g) delegated powers to the Management Committee of the Company based on Plan 2008, all according to the Minutes of the Meeting published in the Securities and Exchange Committee (CVM) and the Companys sites . In the Board of Directors Meeting held on December 7, 2010, the Board approved the new Share Purchase Option Plan for the Companys managers and employees (New Plan). On December 16, 2010 a Board Meeting was held, establishing the main guidelines for the New Plan proposed, in the event it is approved by the Extraordinary General Meeting. In the Extraordinary General Meeting held on January 5, 2010, among other matters, the Companys New Plan was approved by the shareholders, and on the same day a Meeting of the Board of Directors was held, which approved the concession of options based on the New Plan and the First Program of Concession of Shares which, among other subjects, elected the beneficiaries. The Minutes of the Board of Directors and the General Meetings, which approved the New Plan, are available in the Securities and Exchange Committee (CVM) and the Companys sites. On January 6, 2011, the beneficiaries elected in the Former Plan, that is, the plan approved by the Extraordinary General Meeting held on March 25, 2008, agreed to the dissolution of the contracts for the concession of share options agreed on April 12, 2010, consequently, there are no remaining options conceded by the Company under the Former Plan. The amount of R$ 309 recorded as Share Purchase Option Plan to the shareholders equity was written-off in this quarter. Exercise Price R$ / share

Number of options

Balance at December 31, 2010 Dissolution of options granted on January 6, 2011 Balance on March 31, 2011

23.44 (23.44) -

441,434 (441,434) -

In the Board of Directors Meeting held on March 16, 2011, the Board of Directors of the Company approved the termination of the Former plan, which was ratified by the Extraordinary General Meeting held on April 26, 2011.

73

31. Operational revenue


A conciliation between gross income for tax purposes and the income presented in the statement of income for the year, is presented below:
Parent Company 03/31/11 Gross revenue Deductions: Sales taxes Discounts 394,850 03/31/10 352,132 Consolidated 03/31/11 552,149 03/31/10 390,335

(22,610) (7,457) 364,783

(20,594) (7,273) 324,265

(31,701) (10,307) 510,141

(23,315) (7,594) 359,426

32. Financial income (expenses)


Parent Company 03/31/11 Financial expenses Interests Monetary and exchange variations Other (35,525) (10,251) ( 4,648) (50,424) Financial revenue Interests Monetary and exchange variations Other 03/31/10 ( 15,087) ( 34,477) ( 2,987) (52,551) Consolidated 03/31/11 (40,337) (10,269) ( 4,942) (55,548) 03/31/10 ( 20,075) ( 35,279) ( 3,383) (58,737)

7,372 7,582 61 15,015 (35,409)

698 31,008 9 31,715 (20,836)

10,300 7,597 1,555 19,452 (36,096)

10,897 31,059 41,956 (16,781)

74

33. Subsequent events


Incorporation of DA Participaes Ltda. In the Extraordinary General Meeting held on April 29, 2011 at the registered offices of Instituto de Endocrinologia e Medicina Nuclear do Recife S.A. (CERPE), an indirect subsidiary of the Company, CERPE merged DA Participaes Ltda., its controlling party with the consequent extinction of DA Participaes Ltda. , in accordance with the terms of the Justification Protocol for the Incorporation.

* * * *

Marcelo Noll Barboza Chief Executive Officer

Carlos Alberto Bezerra de Moura Chief Financial Officer

Tharso Bossolani Investor Relations Officer

Daniel Vendramini da Silva TC-CRC 1SP125812/O-1

75

Shareholding structure
(Information not audited by the independent auditors)

Shareholders Board of Directors Executive Board Treasury stock Other shareholders Total Shares

Shares ON (Unit.) 97,044 7,453,285 459,035 303,793,651 311,803,015

Situation at March 31, 2011 % Total of Shares (Unit.) 0.03% 2.39% 0.15% 97.43% 100.00% 97,044 7,453,285 459,035 303,793,651 311,803,015

0.03% 2.39% 0.15% 97.43% 100.00%

At March 31, 2010, the Company did not have an Audit Committee.

Shareholders Board of Directors Executive Board Fiscal Board Other shareholders Total Shares

Shares ON (Unit.) 283,148 229,328,592 229,611,740

Situation at March 31, 2010 % Total of Shares (Unit.) 0.12% 0.00% 0.00% 99.88% 100.00% 283,148 229,328,592 229,611,740

0.12% 0.00% 0.00% 99.88% 100.00%

In the AGM held on April 28, 2009 the Companys Audit Committee was installed on a nonpermanent basis, to work in fiscal year 2009. The investiture occurred on May 8, 2009. Commitment clause: The company is committed to arbitration by the Market Arbitration Chamber, in accordance with the commitment clause included in the Companys bylaws.

76

Independent auditors report on review of interim financial information


To The Board of Directors and Shareholders Diagnsticos da Amrica S.A. Barueri - SP Introduction We have reviewed the individual and consolidated interim financial information of Diagnsticos da Amrica S.A. (the Company), included in the Quarterly Financial Information referring to the quarter ended March 31, 2011, comprising the balance sheet and the statements of income, changes in shareholders equity and cash flows for the quarter then ended, including the explanatory notes. Management is responsible for the preparation and fair presentation of these individual interim financial information in accordance with Committee for Accounting Pronouncements CPC 21 Interim Financial Statements and the consolidated interim financial information in accordance with CPC 21 and the international standard IAS 34 Interim Financial Reporting, as issued by the International Accounting Standards Board IASB, and presented in a manner consistent with the rules of the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of Quarterly Financial Information. Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of review We conducted our review in accordance with the Brazilian and International Standards on interim reviews (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 financial information consists of making inquiries, primarily of persons responsible for 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 Brazilian and International Standards on Auditing 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. Opinion on the individual quarterly financial information Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information included in the Quarterly Financial Information described above were not prepared, in all material respects, in accordance with CPC 21 applicable to the preparation of the Quarterly Financial Information and presented in a manner consistent with the CVM rules. Opinion on the consolidated quarterly financial information Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information included in the Quarterly Financial Information described above were not prepared, in all material respects, in accordance with CPC 21 and IAS 34 applicable to the preparation of the Quarterly Financial Information and presented in a manner consistent with the CVM rules.

77

Other matters Statements of value added We also reviewed the individual and consolidated statement of value added (DVA), prepared under managements responsibility, for the quarter ended on March 31, 2011, for which the disclosure is required by Brazilian corporation laws applicable to publicly-held companies and is an additional information for the IFRS which does not require this disclosure. These statements were submitted to the same review procedures previously described and, based on our review, nothing has come to our attention that would lead us to believe that they have not been prepared in all material respects, in accordance with the Quarterly Financial Information taken as whole. The accompanying financial information has been translated into English for the convenience of readers outside Brazil.

So Paulo, May 4, 2011

KPMG Auditores Independentes CRC 2SP014428/O-6

Jos Luiz Ribeiro de Carvalho Accountant CRC 1SP141128/O-2

78

Statement of Executive Board on the Quarterly Information


Observing the disposition in article 25 of the Instruction no. 480/09 of December 7, 2009, the Board declared that reviewed, discussed and agreed with the Quarterly financial information (Parent Company and Consolidated) for the three month period ended March 31, 2011.

Barueri, May 04, 2011 Chief Executive Officer Marcelo Noll Barboza Chief Financial Officer Carlos Alberto Bezerra de Moura Investor Relations Officer Tharso Bossolani

79

Statement of Executive Board on the Independent Auditors Report on review of interim financial information
Observing the disposition in article 25 of the Instruction no. 480/09 of December 7, 2009, the Board declared that reviewed, discussed and agreed with review report from the Independent Auditors dated May 4, 2011, related to the Quarterly financial information (Parent Company and Consolidated) for the three month period ended March 31, 2011.

Barueri, May 04, 2011 Chief Executive Officer Marcelo Noll Barboza Chief Financial Officer Carlos Alberto Bezerra de Moura Investor Relations Officer Tharso Bossolani

80