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3T14

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<ul><li> 1. Localiza Rent a Car S.A.3Q14 ResultsR$ millionOctober 24, 2014</li></ul> <p> 2. 2HighlightsCar Rental DivisionNet revenues289.6 325.13Q13 3Q14R$ millionNet revenuesConsolidated497.3 535.9438.6 471.53Q13 3Q14Car Rental Used car salesR$ million935.9 1,007.4SpreadROIC minus cost of debt after taxes16.5% 18.0%10.5p.p.6.0%10.2p.p.7.8%2013 9M14ROIC Cost of debt after taxesFleet renewal# Number of cars soldAnnualized18,039 17,999 17,449 15,88918,815*3Q13 4Q13 1Q14 2Q14 3Q14* 2Q14 was impacted by the world cup and less business days. 3. 10,734 12,794 13,749 14,2422010 2011 2012 2013 9M13 9M14 3Q13 3Q14802.2# Daily Rentals (thousands)980.7 1,093.7 1,163.510,528 11,518853.1 953.13,608 3,880289.6 325.12010 2011 2012 2013 9M13 9M14 3Q13 3Q143Net Revenues (R$ million)Car Rental DivisionCar rental net revenues grew 12.3% in 3Q14 due to 7.5% in daily volumes and6.0% increase in the average rental rate when compared with 3Q13. 4. # of car rental locations (Brazil and abroad)476 496 524 542 53461 47 50 63 64181 202 202 193 168234 247 272 286 3022010 2011 2012 2013 9M144Car Rental network evolutionLocalizas branches - Brazil Franchisees branches - Brazil Franchisses branches - abroad16 new owned rental locations were added to the network in the 9M14.+16 5. 5Utilization rate evolution Car Rental Division69.1% 68.9% 70.8%66.8% 66.4%Higher utilization rate contributed to improve ROIC.70.5%2010 2011 2012 2013 9M13 9M14 6. 8,044# Daily Rentals (thousands)2010 2011 2012 2013 9M13 9M14 3Q13 3Q14361.19,603455.010,601 10,844535.7 575.98,175 7,720432.9 425.22,700 2,567144.1 142.02010 2011 2012 2013 9M13 9M14 3Q13 3Q146Net Revenues (R$ million)Fleet Rental DivisionContracted revenue went from R$647.3 million in 12/31/2013 to R$724.3 million in 30/09/2014. 7. 18,649 7,1039,178 2,01165,934 59,950 58,65547,285 50,772 56,644 62,6416,514(470)5852010 2011 2012 2013 9M13 9M14 3Q13 3Q14588.5 308.4 98.8 278.91,910.4 1,776.5 1,618.869,74451,156 52,73844,642Cars purchased Cars sold52,153Net Investment in Fleet (R$ million)2,026.2230.61,472.4 1,605.818,039 18,81517,569 17,674* It does not include theft / crashed cars.30.8528.1 584.21,321.9 1,468.1 1,520.01,747.31,241.81,465.2497.3 535.92010 2011 2012 2013 9M13 9M14 3Q13 3Q14Purchases (includes accessories) Used car sales net revenues7Net investmentFleet Expansion* (quantity)Efficiency in managing car purchases aiming at optimizing utilization rate.(1,141)140.648.3 8. 8Sales by quarterQuantity# Number of cars soldResult of the OEMs delays indelivering cars13,285 14,504 15,091 13,764 12,934 13,66918,039 17,999 17,449 15,889Higher sale volumes result in lower fixed costs per car sold.18,8151Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 9. 9End of period fleetQuantity97,190 103,215 103,56396,317 103,526 88,06026,615 31,629 32,104 32,809 32,809 33,07261,445 64,688 65,086 70,717 70,406 70,4912010 2011 2012 2013 9M13 9M14Car Rental Fleet RentalIn the Car Rental Division, fleet was kept stable despite the rental volume growth,reflecting productivity gain thru better utilization.The number of cars in the Fleet Rental Division totaled 33,072, on September 30,including 1,583 cars in preparation to be delivered to customers (444 cars on June 30, 2014). 10. 3,166.72,918.1 3,506.22,497.2 2,542.41,175.3 1,450.0 1,646.7 1,758.9 1,300.6 1,391.8438.6 471.51,321.91,468.1 1,520.0 1,747.31,241.8 1,465.2497.3 535.92010 2011 2012 2013 9M13 9M14 3Q13 3Q1410Consolidated net revenuesR$ millionCar Rental Used car salesConsolidated net revenues increased by 12.4% in 9M14.935.9 1,007.42,857.0 11. 11Consolidated EBITDAR$ millionDivisions 2010** 2011** 2012 2013 9M13 9M14* 3Q13 3Q14*Car Rental 45.3% 46.9% 40.9% 36.8% 36.7% 39.3% 38.5% 39.6%Fleet Rental 68.0% 68.6% 66.4% 65.5% 65.8% 61.5% 65.2% 61.1%Rental Consolidated 52.3% 53.8% 49.3% 46.5% 46.6% 46.3% 47.5% 46.3%Used Car Sales 2.6% 2.8% 4.2% 5.7% 6.0% 6.0% 6.0% 4.4%EBITDA grew 7.6% in the 9M14.649.5821.3 875.6 916.5680.5 732.2238.2 241.52010 2011 2012 2013 9M13 9M14 3Q13 3Q14(*) It considers the new appropriation criteria of the overhead, which is also appropriated to Seminovos.(**) Up to 2011, accessories and freight of new cars were recorded as permanent assets and depreciated over the carsuseful life. From 2012 on, such values have been accounted directly in the cost line, impacting EBITDA but reducingdepreciation costs. 12. 1,536.0 1,683.9* *2010 2011 2012 2013 9M14 3Q143,509.7 4,133.02,076.61,895.81,452.4 1,316.6 1,231.61,096.9 4,592.3 4,054.8 3,954.04,311.3* *2010 2011 2012 2013 9M14 3Q14*AnnualizedDepreciation IPI Effect - Non recurring additional depreciation12Average depreciation per carin R$3,972.45,408.2Car RentalFleet Rental*AnnualizedLower depreciation contributed to higher ROIC in the 9M14. 13. 250.5 291.6336.3 *240.9384.3294.4 308.3102.1 101.92010 2011 2012 2013 9M13 9M14 3Q13 3Q1413Consolidated net incomeR$ million* Pro forma 2012 net income excluding additional depreciation related to the IPI tax reduction, net of income tax.Higher EBITDA and lower depreciation were offset by an increaseof R$14.3 million in financial expenses. 14. Free cash flow - FCF (*) Without the technical discount up to 2010Free cash flow - R$ million 2010 2011 2012 2013 9M1414OperationsEBITDA 649.5 821.3 875.6 916.5 732.2Used car sale revenue, net from taxes (1,321.9) (1,468.1) (1,520.0) (1,747.3) (1,465.2)Depreciated cost of cars sold (*) 1,203.2 1,328.6 1,360.2 1,543.8 1,294.5(-) Income tax and social contribution (57.8) (83.0) (100.9) (108.5) (89.9)Change in working capital 54.5 (83.9) 37.1 2.9 (82.8)Cash provided by rental operations 527.5 514.9 652.0 607.4 388.8Capex -RenewalsUsed car sale revenue, net from taxes 1,321.9 1,468.1 1,520.0 1,747.3 1,465.2Fleet renewal investment (1,370.1) (1,504.5) (1,563.3) (1,819.7) (1,589.3)Net investment for fleet renewal (48.2) (36.4) (43.3) (72.4) (124.1)Fleet renewal quantity 47,285 50,772 56,644 62,641 52,153Investment, other property and intangibles investments (50.6) (59.9) (77.8) (47.5) (36.0)Free cash flow before growth, new HQ and interest 428.7 418.6 530.9 487.5 228.7Capex -GrowthFleet growth investment (540.3) (272.0) (55.5) (209.4) (17.8)Change in accounts payable to car suppliers 111.3 32.7 (116.9) 89.7 121.8Fleet growth (429.0) (239.3) (172.4) (119.7) 104.0Fleet increase / (reduction) quantity 18,649 9,178 2,011 7,103 585Free cash flow after growth, and before interest and before new headquarters (0.3) 179.3 358.5 367.8 332.7Capex HQInvestment in the construction of the new headquarters (0.5) (3.1) (2.4) (6.5) (28.9)Marketable securities new headquarters - - - - (90.0)New headquarters construction (0.5) (3.1) (2.4) (6.5) (118.9)Free cash flow before interest (0.8) 176.2 356.1 361.3 213.8 15. 15Changes in net debtR$ million1,332.8-332.7(*) Before new headquarters capex119.4118.983.5The strong cash generation allowed net debt to remain stable,even after investments in the new headquarters.Net debt as ofDec 31, 2013FCF (*)Financial expensesNew HQDividends1,321.9Net debt as ofSep 30, 2014 16. 2,446.7 2,681.7 2,547.6 2,797.9 2,960.41,281.1 1,363.4 1,231.2 1,332.8 1,321.92010 2011 2012 2013 9M1416Debt - ratiosNet debt vs. Fleet valueBALANCE AT THE END OF PERIOD 2010(*) 2011 2012 2013 9M14Net debt / Fleet value 52% 51% 48% 48% 45%Net debt / EBITDA** 2.0x 1.7x 1.4x 1.5x 1.4%Net debt / Equity 1.4x 1.2x 0.9x 1.0x 0.8%EBITDA / Net financial expenses 5.0x 4.6x 6.3x 8.3x 6.1x(*) 2010 ratios based on USGAAP financial statements(**) AnnualizedNet debt Fleet valueComfortable debt ratios. 17. 35.9 184.2487.1 511.4221.0544.5 445.0147.52014 2015 2016 2017 2018 2019 2020 202117Debt maturity profile (principal)R$ millionThe Company monitors the market on a regular basis and changes its debt portfolioto improve debt profile and/or reduce financial costs.Cash1,291.4707.2As of September 30, 2014After 8th debenture issuance 18. 16,9% 17,1% 16,1% 16,5% 18,0%7,3% 8,6%10.5p.p.6,3% 6,0%7,8%2010 2011 2012 2013 9M1418ROIC versus cost of debt after taxes9.6p.p. 8.5p.p. 9.8p.p. 10.2p.p.ROIC Cost of debt after taxesAnnualizedROIC increase was enough to offset higher basic interest rate. 19. Thank You!The material presented is a presentation of general background information about LOCALIZA as of the date of the presentation. It is information in summaryform and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. This presentation is strictly confidential andmay not be disclosed to any other person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, theaccuracy, fairness, or completeness of the information presented herein.This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of theSecurities Exchange Act of 1934. Such forward-looking statements are only projections and are not guarantees of future performance. Investors are cautionedthat any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations andbusiness environments of LOCALIZA and its subsidiaries that may cause the actual results of the companies to be materially different from any future resultsexpressed or implied in such forward-looking statements.Although LOCALIZA believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on informationcurrently available to LOCALIZAs management, LOCALIZA cannot guarantee future results or events. LOCALIZA expressly disclaims a duty to update any ofthe forward-looking statement.Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act of 1933. Any offeringof securities to be made in the United States will be made by means of an offering memorandum that may be obtained from the underwriters. Such offeringmemorandum will contain, or incorporate by reference, detailed information about LOCALIZA and its business and financial results, as well as its financialstatements.This presentation does not constitute an offer, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither this presentation nor anythingcontained herein shall form the basis of any contract or commitment whatsoever.www.localiza.com/riEmail: ri@localiza.comTel: 55 31 32477024Disclaimer </p>