Apresentação 2 t11 e 1s11 eng
Transcript of Apresentação 2 t11 e 1s11 eng
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July 15th, 2011
Localiza2Q11 Results
R$ million, IFRS
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74 .057.5
2Q10 2Q11
1H11 and 2Q11 Highlights
272.8
290.6352.7
353.7
2Q10 2Q11
Consolidated net revenues
R$ million
25.4%
29.7%
563.4
706.4
530.8
585.3693.3
694.6
1H10 1H11
1,387.91,116.1
150.5200.6
2Q10 2Q11
Consolidated EBITDA
282.6386.8
1H10 1H11
30.9%
Consolidated net income
137.6106.2
1H10 1H11
33.3%
36.9%
28.7%
29.6%24.4%
Localiza kept presenting a strong growth with profitability.
Rentals Used car sales
Rentals Used car sales
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Car Rental Division
Increase in volumes and average rental rate.
3,411 4,668 5,7937,940 8,062
10,734
4,8576,243
2,488 3,179
2005 2006 2007 2008 2009 2010 1H10 1H11 2Q10 2Q11
CAGR: 25.8%
# daily rentals (thousand)
28.5%27.8%
239.4183.6
472.4357.9
802.2585.2565.2
428.0346.1
258.6
2005 2006 2007 2008 2009 2010 1H10 1H11 2Q10 2Q11
CAGR: 25.4%
Net revenues (R$ million)
32.0%
30.4%
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Fleet Rental Division
Growth in rental rate derived from the increase in basic interest rate.
3,3514,188
5,1446,437 7,099
8,044
3,8164,625
1,926 2,372
2005 2006 2007 2008 2009 2010 1H10 1H11 2Q10 2Q11
CAGR: 19.1%
# daily rentals (thousand)
21.2%
23.1%
111.0142.0184.0 219.8
268.4 303.2361.1
167.3215.7
85.9
2005 2006 2007 2008 2009 2010 1H10 1H11 2Q10 2Q11
CAGR: 20.5%
Net revenues (R$ million)
28.9%
29.2%
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Net Investment
Flexibility to adjust fleet due to demand for rental.
Fleet increase * (quantity)
26,10533,520 38,050
44,211 43,16128,667
20,60218,763 23,17430,093 34,281 34,519
24,05910,679 12,478
65,934
11,32322,809 21,627
47,285
2005 2006 2007 2008 2009 2010 1H10 1H11 2Q10 2Q11
7,342 10,346 7,957 9,930 8,642
18,649
1,182 4,608644 8,124
Purchased cars Sold cars
690.0930.3 1,060.9
1,335.3 1,204.2
1,910.4
672.6 825.6
360.9593.8446.5 588.8
850.5 980.8 922.41,321.9
585.3 693.3290.6 352.7
2005 2006 2007 2008 2009 2010 1H10 1H11 2Q10 2Q11
243.5341.5 210.4
87.3 132.3354.5 281.8
588.5
70.3 241.1
Purchases (accessories included) Used car sales revenues
Net investment (R$ million)
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Used car sales network
The Company is still increasing its used car sales network to increase sales.
# of stores Footprint
2632 35
4955 56
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2005 2006 2007 2008 2009 2010 1H11
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End of period fleet
The total fleet including cars from franchisees totals 103,517.
End of period fleet (quantity)
31,373 35,686 39,112 47,517 61,445 47,727 63,50011,76214,630 17,790 23,403 22,778
26,61523,328
28,654
24,103
2005 2006 2007 2008 2009 2010 1H10 1H11
CAGR: 19.7%
35,86546,003 53,476 62,515 70,295
88,060 92,15471,055
29.7%
Car rental Fleet rental
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Consolidated net revenuesR$ million
The increase in volumes and rates reflected in the increase in revenues .
854.91,126.2
1,505.51,823.7 1,820.9
1,116.11,387.9
563.4 706.4
2,497.2
2005 2006 2007 2008 2009 2010 1H10 1H11 2Q10 2Q11
CAGR: 23,9%
25,4%24,4%
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EBITDA R$ million
Consistent EBITDA margins.
277.9 311.3403.5
504.1 469.7
649.5
282.6386.8
150.5 200.6
2005 2006 2007 2008 2009 2010 1H10 1H11 2Q10 2Q11
CAGR: 18.5%
36.9%
33.3%
Divisions 2005 2006 2007 2008 2009 2010 1H10 1H11
44.4%
66.5%
51.5%
1.6%
45.1%
67.1%
52.0%
3.7%
45.3%
68.0%
52.3%
2.6%
45.9%
69.1%
53.3%
5.6%
2Q10 2Q11
46.1%
68.5%
Rentals consolidated 53.6% 52.9% 54.5% 51.1% 52.8% 53.1%
3.6%
46.5%
66.1%
2.2%
41.9%
68.7%
1.1%
43.4%
71.4%
4.6%
46.0%
71.3%
5.5%
Car rental 47.5%
Fleet Rental 65.5%
Used car sales 13.2%
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Average depreciation per carR$
1,536.0 1,370.9 1,251.9
332.9
2,546.0 2,577.0
939.1492.3
2005 2006 2007 2008 2009 2010 1H11 2Q11
Car rental
3,509.74,112.9 3,990.6
2,395.8
5,083.14,371.7
2,383.32,981.3
2005 2006 2007 2008 2009 2010 1H11 2Q11
Fleet Rental
Average depreciation per car without any expressive volatility since 2010
Hot used car market
Financial crisis effectNormal market conditions
*
* Annualized
* Annualized
*
**
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74.057.5
137.6106.2
250.5
116.3127.4190.2
138.2106.5
2005 2006 2007 2008 2009 2010 1H10 1H11 2Q10 2Q11
Consolidated net incomeR$ million
28.7%29.6%
Reconciliation EBITDA x net income 2009 2010 Var. R$ 1H10 1H11 Var. R$
156.0 273.3
9.3
282.6
(66.5)
(10.2)
(57.4)
(42.3)
106.2
23.8
87.7361.0
25.8
386.8
(89.7)
(12.3)
179.8
(88.0)
(59.2)
16.5
104.2
(23.2)
(2.1)
26.0
(30.6)
(16.9)
137.6
(0.1)
(17.2)
31.4
(54.3)
134.2
459.1
10.6
469.7
(172.3)
(21.0)
(112.9)
(47.2)
116.3
615.1
34.4
649.5
(146.3)
(21.1)
(130.1)
(101.5)
250.5
2Q10 2Q11 Var. R$
EBITDA – Rentals and franchising 144.0 187.9 43.9
6.2
EBITDA Consolidated 150.5 200.6 50.1
(7.5)
(1.2)
(16.0)
(8.9)
16.5
EBITDA – Used car sales 6.5 12.7
Cars depreciation (35.8) (43.3)
Other property and equipment depreciation (5.1) (6.3)
Financial expenses, net (29.2) (45.2)
Income tax and social contribution (22.9) (31.8)
Net income 57.5 74.0
Growth of 28.7% in net income, in line with the increase in rental revenues.
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Free cash flow - FCF
Cash generated in 1H11 destined to fleet growth and the reduction of the accounts payable to OEMs.
(*) without technical discount deduction
Free cash flow - R$ million 2005 2006 2007 2008 2009 2010 1H11
469.7 649.5
(1,321.9)
1,203.2
(57.8)
54.5
527.5
1,321.9
(1,370.1)
-
(48.2)
(51.1)
428.2(540.3)
111.3
(0.8)
18,649
(922.4)
386.8
(693.3)
620.4
(40.7)
(62.5)
210.7
693.3
(692.9)
-
0.4
(23.3)
187.8(132.7)
(49.6)
5.5
Fleet increase - quantity 7,342 10,346 7,957 9,930 8,642
855.1
(49.0)
(11.5)
341.9
922.4
(963.1)
15.2
(25.5)
(21.0)
295.4(241.1)
241.1
295.4
4,608
504.1
(980.8)
874.5
(52.8)
(44.8)
300.2
980.8
(1,035.4)
-
(54.6)
(39.9)
205.7 (299.9)
(188.9)
(283.1)
EBITDA 277.9 311.3 403.5
Used car sales net revenues (446.5) (588.8) (850.5)
Depreciated cost of used car sales (*) 361.2 530.4 760.0
(-) Income tax and social contribution (32.7) (42.7) (63.4)
working capital variation (24.2) (4.8) 13.3
Cash provided before capex 135.7 205.4 262.9
Used car sales net revenues 446.5 588.8 850.5
Capex of car - renewal (496.0) (643.3) (839.0)
Change in accounts payable to car suppliers (capex) - - -
Net capex for renewal (49.5) (54.5) 11.5
Capex – other property and equipment, net (28.0) (32.7) (23.7)
Free cash flow before growth and interest 58.2 118.2 250.7 Capex of car - growth (194.0) (287.0) (221.9)
Change in accounts payable to car suppliers (capex) (25.5) 222.0 (51.0)
Free cash flow after growth and before interest (161.3) 53.2 (22.2)
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Debt profile and costs R$ million
207.7 226.6 284.8 238.0
514.0372.0
1.3
2011 2012 2013 2014 2015 2016 2017
Contract rate Effective cost 2011 2012 2013 2014 2015 2016 2017 Total
Working capital 108.7% to 114.7% of CDI
CDI + 0.44%pa
112.0% to 114.0% of CDI
112.8% of CDI
CDI +1.95%pa
TJLP + 3.8%pa / CDI + 2.3%pa
-
-
-
111.1% to 115.0% of CDI - 15.0 35.0 55.0 75.0 190.0 - 370.0
Debenture 2nd Issuance CDI + 0.6%pa - 66.6 66.6 66.8 - - - 200.0
Debenture 4th Issuance 114.2% of CDI - 24.0 24.0 63.0 63.0 74.0 122.0 370.0
Debenture 5th Issuance 114.5% of CDI - - - - - 250.0 250.0 500.0
Debenture 1st Issuance: Total Fleet CDI + 2.0%pa - 100.0 100.0 100.0 100.0 - - 400.0
Other TJLP + 3.8%pa / CDI + 2.3%pa 1.3 2.1 1.0 - - - - 4.4
Interests accrued until 06/30/2011, net of interest paid - 51.3 - - - - - - 51.3
Cash and cash equivalents on 06/30/2011 - (484.2) - - - - - - (484.2)
Net debt - (431.6) 207.7 226.6 284.8 238.0 514.0 372.0 1,411.5
Cash484.2
Localiza improved debt duration.
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Debt – ratiosR$ million
Comfortable debt ratios.
535.8 440.4765.1
1,254.5 1,078.6 1,281.1 1,411.5900.2
1,247.7 1,492.9 1,752.6 1,907.82,446.7 2,550.0
2005 2006 2007 2008 2009 2010 1H11
Net debt Fleet value
SALDOS EM FINAL DE PERÍODO 2005 2006 2007 2008 2009 2010
57% 52%
2.0x
1.4x
EBITDA(*) / Net financial expenses (*) 3.3x 4.8x 5.4x 3.8x 4.2x 5.0x 4.4x
2.3x
1.5x
72%
2.5x
2.0x
1H11
Net debt / Fleet value 60% 36% 51% 55%
Net debt / EBITDA (*) 1.9x 1.4x 1.9x 1.8x
Net debt / Equity 1.4x 0.7x 1.3x 1.4x
(*) annualized
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Spread
Spread of 7.7p.p despite increase of basic interest rate.
2005 2006 2007 2008 2009 2010 1H10
1,984.6 1,913.2
27.2%
0.55x
15.1%
7.8%
7.3
28.6%
0.59x
16.9%
7.8%
9.1
1,642.3
32.1%
0.53x
17.0%
8.2%
Average capital investment - R$ million 606.3 986.2 1,137.5
8.8
1,702.3
21.9%
0.53x
11.5%
7.8%
3.7
2,375.0
NOPAT margin (over rental net revenues) 37.0% 34.5% 36.9% 28.3%
Turnover of average capital investment (over rental net revenues) 0.67x 0.55x 0.58x 0.58x
ROIC 24.8% 18.7% 21.3% 16.6%
Interest on debt after tax 13.6% 10.9% 8.4% 8.9%
Spread (ROIC – Interest after tax) - p.p. 11.2 7.8 12.9 7.7
1H11
15.1% 16.6%
8.9%7.8%13.6% 10.9% 8.4% 8.2% 7.8% 7.8%
16.9%11.5%
24.8%18.7% 21.3%
17.0%
2005 2006 2007 2008 2009 2010 1H10 1H11
Interest on debt after tax ROIC
11.27.8 12.9 8.8 3.7 9.1 7.77.3
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17.9%20.5% 22.1%
24.8% 24.2%27.4%
2005 2006 2007 2008 2009 2010
Fleet - consolidated Revenues - consolidated
Source: ABLA 2011 yearbook
Fleet
37.5% 12.5%
Market share
Car rental division Fleet rental division
18.9% 20.6% 20.8% 21.8% 21.4% 23.5%
2005 2006 2007 2008 2009 2010
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Highercompetitiveness
Market shareincrease
Gains of scale
Integrated and synergic business model
Favorable drivers to growth
The competitive advantages provide growth and superior performance
High levels of corporate governance
Virtuous circle
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Disclaimer
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 summary form 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 and may not be disclosed to any other person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein.
This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of LOCALIZA and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.
Although LOCALIZA believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to LOCALIZA’smanagement, LOCALIZA cannot guarantee future results or events. LOCALIZA expressly disclaims a duty to update any of the 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 offering of 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 offering memorandum will contain, or incorporate by reference, detailed information about LOCALIZA and its business and financial results, as well as its financial statements.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.