Nova apresentação eng
description
Transcript of Nova apresentação eng
1December, 2012
2
1. Company overview
2. Main business divisions
� Car rental
� Fleet rental
� Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
� Earnings release 3Q12
Agenda
3
Company: milestones
1973 1982 1983 20041990 2005 2011
Phase I – Rise to #1
1973 – Founded in Belo Horizonte/MG
Late 70’s - Acquisitions in the Northeast of Brazil
1981 – Brazilian car rental leader in # of branches
Phase II – Expansion
1984 – Expansion strategy by adjacencies: Franchising
1991 – Expansion strategy by adjacencies: Seminovos
1997 – PE firm DL&J enters at a market cap of US$ 150 mm
1997 – Expansion strategy by adjacencies: Fleet rental
Phase III – Reaching Scale
2005 – IPO: market cap of US$ 295 mm
2011 – Rated as investment grade by Moody’s, Fitch and more recently S&P
2012 – ADR level I
09/28/2012 – Market cap pf US$3.6 biwith ADTV of R$34.0 million
4
Company: integrated business platform
This integrated business platform gives Localiza flexibility and superior performance.
Synergies:
bargaining power
cost reduction
cross selling
� 13,982 cars
� 202 locations in Brazil
� 49 locations in South America
� 33 employees
� 67.4% sold to final consumer
� 73 stores
� 1,032 employees
�61,303 cars
�3.1 million clients
�262 locations
�4,228 employees
� 32,027 cars
� 716 clients
� 349 employees
Based on the 3Q12
5
Company: Business platform divisions
Car rental
Localiza car rental rents to individuals or businesses at airports and other locations.
The traditional backbone of Localiza. With its giant fleet that gets renewed annually, it lays the foundation for all scale effects captured by the group as a whole.
Fleet management
Total Fleet, offering customized fleet for terms of 2-3 years.
Total Fleet is seen as an additional business that generates value by leveraging synergies created by the integrated platform approach.
Used car sales
Support area, with the objective to sell the Company’s used cars and add know-how in buying cars and to estimate the residual value.
As a support business activity, Seminovos enables the sell 70% of used cars directly to the final customer, thereby maximizing the residual value of used rental cars.
Franchising
Supplementary business, with the purpose to expand the brand’s network.
Franchising is seen as a primarily strategic business by management – the revenues generated are low, however brand and network expand at minimum capital expenditure.
6
Total
per year
R$ % R$ % R$
Net Revenues 19,1 100,0% 29,2 100,0% 48,3
Cost s (7,4) -38,7% - 0,0% (7,4)
SG&A (2,7) -14,1% (2,8) -9,6% (5,5)
Net car sale revenue 26,4 90,4% 26,4
Book value of car sale (25,7) -90,0% (25,7)
EBITDA 9,0 47,2% 0,7 2,4% 9,7
Depreciation (vehicle) (2,0) -6,8% (2,0)
Depreciation (non-vehicle) (0,3) -1,6% (0,3)
Interest on debt (2,4) -8,2% (2,4)
Tax (2,7) -14,2% 1,1 3,8% (1,6)
NET INCOME 6,0 31,5% (2,6) -8,9% 3,4
NOPAT 5,2
ROIC 18,9%
Cost of debt after tax (CDI+1,5%) 8,6%
Fleet Rental Seminovos
per operating car per operating car
$27.5Car acquisition
Net car sale revenue
$26.4
1 2 3 4 5 8 9 10 11 12
1 - year cycle
Expenses, interest and tax
Revenue
Financial cycle
Spread10,3p.p.
2011
7
Total
per year
R$ % R$ % R$
Net Revenues 16,3 100,0% 28,6 100,0% 44,9
Costs (4,2) -25,8% - 0,0% (4,2)
SG&A (0,9) -5,5% (2,3) -8,0% (3,2)
Net car sale revenue 26,3 92,0% 26,3
Book value of car sale (24,9) -90,0% (24,9)
EBITDA 11,2 68,7% 1,4 4,9% 12,6
Depreciation (vehicle) (4,2) -14,7% (4,2)
Depreciation (non-vehicle) (0,1) -0,6% (0,1)
Interest on debt (2,0) -7,0% (2,0)
Tax (3,4) -20,6% 1,4 5,0% (1,9)
NET INCOME 7,7 47,5% (3,4) -11,7% 4,4
NOPAT 5,8
ROIC 16,1%
Cost of debt after tax (CDI+1,5%) 8,6%
Fleet Rental Seminovos
per operating car per operating car
$36.1Car acquisition
Net car sale revenue
$26.3
1 2 3 4 5 20 21 22 23 24Expenses, interest and tax
Revenue
Financial cycle
Spread7,5p.p.
2011
2 - year cycle
8
Rental revenues evolution
594.0 692.7 819.3 943.21,156.6 1,168.4
1,483.51,720.9
2004 2005 2006 2007 2008 2009 2010 2011
3,841.6 3,876.7 3,995.7 4,265.2 4,668.0 4,827.75,412.0 5,690.0
2004 2005 2006 2007 2008 2009 2010 2011
Localiza’s rental revenues at constant prices
Sector’s revenue at constant prices
In 2011 the Company grew 5,9x GDP and sector 1,9x.
GDP 5.7% 3.2% 4.0% 6.1% 5.2% -0.3% 7.5% 2.7%
CAGR:4.0%
9
Spread
2006 2007 2008 2009 2010 2011 9M12 a
Average capital investment - R$ million 986.2 1,137.5 1,642.3 1,702.3 1,984.6 2,445.3 2,613.2
NOPAT Margin (over rental net revenues) 34.5% 36.9% 32.1%* 21.9% 28.6% 28.9% 25.3%*
Turnover of average capital investment (over rental net revenues) 0.55x 0.58x 0.53x 0.53x 0.59x 0.59x 0.62x
ROIC 18.7% 21.3% 17.0% 11.5% 16.9% 17.1% 15.7%
Interest on debt after tax 10.90% 8.40% 8.84% 7.59% 7.33% 8.60% 6.67%
Spread (ROIC – Interest after tax) - p.p. 7.8 12.9 8.2 4.0 9.6 8.5 9.0
10.90%8.40% 8.84% 7.59% 7.33% 8.60%
6.67%
18.70%21.25%
17.03%
11.54%
16.94% 17.12% 15.70%
2006 2007 2008 2009 2010 2011 9M12
annualized
Cost of debt after tax ROIC
7.8p.p. 12.9p.p.8.2p.p.
4.0p.p.9.6p.p. 8.5p.p.
9.0p.p.
(*) 2008 and 2012 NOPAT were calculated excluding additional fleet depreciation that was treated as equity loss since they wereextraordinary non-recurring events caused by external factors (IPI reduction for new cars), following the concepts recommended by SternStewart.
10
Raising money
Renting cars Selling carsBuying
cars
Cash to renew the fleet or pay debt
$
$
Profitability comes from rental divisions
Competitive advantages: 39 years of experience in managing assets
11
Competitive advantages: raising money
Global Scale
National Scale
Localiza raises money with lower spreads when compared to Brazilian competitors.
As of November, 2012.
Renting carsRaisingmoney
Sellingcars
Buyingcars
BBB- FitchBaa3 Moody’s
BBB- S&PBBB+ S&P B+ S&P B+ Fitch B1 Moody's
brAAA S&P Aa1.br Moody’sAA+(bra) Fitch
A (bra) FitchbrA- S&P
A- (bra) FitchA- (bra) Fitch
12
Fiat
39.3%GM
21.0%
Renault
9.9%Ford
11.0%
Others
1.3%
VW
17.5%
Competitive advantages: buying cars
Better conditions due to higher volumes
Localiza purchased 2.3% of the national production from the main automakers in 2011 .
Localiza - Purchases by brand in 2011
Renting carsRaisingmoney
Buyingcars
Sellingcars
Number of cars purchased - 2011
* Includes Franchising
Localiza Unidas Locamerica
68.192
15.34111.052
*
13
The Company is present in 213 cities where the other largest networks do not operate.
Competitive advantages: renting cars
Know HowBrand Brazilian distribution
# o
f b
ran
ch
es
# o
f cit
ies
Localiza Hertz Unidas Avis
Source: Brand Analytics and each company website (October, 2012)
Renting carsRaisingmoney
Buyingcars
Sellingcars
116
116
52
476
284
329
80 6829
14
Sales to final consumer
Competitive advantages: selling cars
Buffer: additional fleet
Selling directly to final consumer cutting the intermediaries reduces our depreciation.
Cars available for sale are used by the car rental division during peaks of demand.
Renting carsRaisingmoney
Buyingcars
Sellingcars
15
1. Company overview
2. Main business divisions
� Car rental
� Fleet rental
� Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
� Earnings release 3Q12
Agenda
16
Car rental overview
Financial performance
428.0585.2
980.7
-5 0 0 .0 0
-3 0 0 .0 0
-1 0 0 .0 0
1 0 0 .0 0
3 0 0 .0 0
5 0 0 .0 0
7 0 0 .0 0
9 0 0 .0 0
1 ,1 0 0 .0 0
2007 2009 2011-1 0 .0 %
4 0 .0 %
9 0 .0 %
Car rental net revenues EBITDA margin (%)
*Source: each company website (May, 2012)
46.0% 41.9%46.9%
63.1%Compact cars
Fleet composition – 64,688 cars
36.9%Others
Corporate fleet size
Satisfaction survey
96.0% 95.3% 95.9%
2007 2009 2011
35,68647,517
64,688
2007 2009 2011
17
Distribution
Source: Each company’s website as of October, 2012.
Localiza holds an extraordinarily strong position in the Brazilian market, as over decades it has been successfully competing against major global players through local scale.
279 312 346 381 415 449 452 464
254
2005 2006 2007 2008 2009 2010 2011 1H12 9M12
Car rental distribution (Brazil)
# of branches # of cities
Localiza Hertz Unidas Avis
116
116
52
476
284
80 68
29
329
18Source: ABLA (Brazilian Car Rental Association) and each company’s website (October, 2012)
Off-airport market is still fragmented.
Airport locations Off-airport locations
Car rental locations in Brazil
Market share
36.5%
Car Rental market share - Brazil
(# of cars)
19
Main competitors
Market share (2010)* 6.7% 3.1% 2.8%
Airport locations 34 35 42
Off-airport locations 73 27 78
Strengths• Capitalized by three
Private Equity funds• Local expertise
• International brand• Local expertise
• International brand• Local expertise
Weaknesses
• Weak footprint• Relatively weak brand• Unclear priorities between
rental and fleet business• Used car sales retail
network
• Weak footprint in Brazil• Master franchisee in Brazil in
“Chapter 11”• Used car sales retail network
• Weak footprint in Brazil• Used car sales retail network
*Source: Roland Berger report, as of June 21, 2012, based on 2010 figures
20
Drivers
71
128154
179
2003 2009 2010 2011
Air traffic passengers - million
GDP per capita
(R$ thousands)
6.9 7.5 8.4 9.510.7 11.7 12.8
14.216.0 16.6
19.0 21.3
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
151
260
465510
545
645
240180 200
350
415380
300
18% 16% 15% 13%
31%
35%
15%
37%38%
51%
22% 20%
27%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e
Monthly minimum salary (R$) Daily rental price over minimum salary (%)
Car rental affordability
Investments in Brazil (2013-2016)(US$ 300 billion)
Source: BNDES, IPEADATA, IBGE , BCB and Infraero
202
132
79 7251
36
21
1. Company overview
2. Main business divisions
� Car rental
� Fleet rental
� Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
� Earnings release 3Q12
Agenda
22
Number of clients
Fleet rental overview
Financial performance
219.8303.2
455.0
0 .0 0
5 0 .0 0
1 0 0 .0 0
1 5 0 .0 0
2 0 0 .0 0
2 5 0 .0 0
3 0 0 .0 0
3 5 0 .0 0
4 0 0 .0 0
4 5 0 .0 0
5 0 0 .0 0
2007 2009 2011
5 0 .0 %
1 0 0 .0 %
Fleet rental net revenues EBITDA margin (%)
71.3% 68.7% 68.6%
42.6%Compact cars
Fleet composition
57.4%Others
456
584687
2007 2009 2011
93.0%99.0%98.0%
Users VIP Users Contract
managers
Satisfaction survey
23Source: ABLA and Datamonitor
Less than 50% of targeted fleet is rented.
Outsourced fleet penetration
Corporate fleet:4,200,000
Targeted fleet:500,000
Rented fleet:245,000
31,629
Brazilian Market World
5.4%8.9%
13.3%16.5%
24.5%
37.4%
46.9%
58.3%
Bra
zil
Poland
Cze
ch R
epublic
Ger
man
y
France
Spain Uk
Holla
nd
Drivers
24
13.9%
Fleet Rental division - Brazil
(# of cars)
Source: based on ABLA 2012 yearbook
The business greatly profits from synergies with its car rental affiliate, and as the Brazilian economy matures, one can expect a higher percentage of companies to take advantage of fleet rental.
Market share
25
Main competitors
Market share* 9.5% 7.1%
Revenues (R$ million) 272.5 204.7
Fleet size 27,262 16,418
Strengths• Brazil’s second player• Successful IPO 04/2012
• Capitalized• Synergies with its rental car
business area
Weaknesses
• Low profitability (competing on price in the pursuit of market share)
• Depreciation calculus• Used car sales retail network
• Loss making in the last six years (competing on price in the pursuit of market share)
• Used car sales retail network
*Source: Roland Berger report, as of June 21, 2012, based on 2011 figures.
26
1. Company overview
2. Main business divisions
� Car rental
� Fleet rental
� Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
� Earnings release 3Q12
Agenda
27Source: Fenabrave 2011
Localiza launched Seminovos in 1993, a brand new concept featuring younger cars.
Combining the Localiza brand with a growing network of stores
enables the firm to continuously sell thousands of cars at market prices.
# of points of sale
Car sales – operating data
32 35
4955
6673
26
2006 2007 2008 2009 2010 2011 9M12
+7
28
8.0 7.9
7.4
6.9
6.5
5.9
5.5
2005 2006 2007 2008 2009 2010 2011
Income increase and credit availability are the major drivers for car sales.
Source: O Estado de São Paulo, as of 04/15/12 (based on researches of Sindipeças, Roland Berger and PWC).
Used car sales drivers: affordability and penetration
# of inhabitants per car (2011) # of inhabitants per car - Brazil
5.5
4.2
4.0
3.6
2.1
2.0
1.9
1.8
1.3
Brazil
Argentina
Russia
South Korea
Japan
France
Germany
United Kingdon
USA
29
7.9
8.9
11.9
15.8
17.4
1.82.3
2.73.0 3.3 3.5
6.8
5.6
7.0
8.98.4
7.17.37.1
6.7
1.6
Brazilian car market: new x used car market and affordability
Source: FENABRAVE (Autos + light commercial) and Bradesco
New cars4.4x
Individuals with affordability to buy a car*
Used cars
3.7x 3.1x2.7x
2.4x2.5x 2.6x
2005 2006 2007 2008 2009 2010 2011
Used car market is currently 2.6x the new car market.
* Population with affordability to buy a new compact car (R$25,000) with 20% downpayment
30
2011 Up to 2 years476,827
2011 Brand news3,425,499
2011 Used cars8,862,951
Used car sales net revenues Cars sold
850.5 922.4
1,468.1
-1 0 0 .0 0
1 0 0 .0 0
3 0 0 .0 0
5 0 0 .0 0
7 0 0 .0 0
9 0 0 .0 0
1 ,1 0 0 .0 0
1 ,3 0 0 .0 0
1 ,5 0 0 .0 0
1 ,7 0 0 .0 0
2007 2009 2011
0.6% 1.5% 10.6%
30,09334,519
50,772
0 .0 0
1 0 ,0 0 0 .0 0
2 0 ,0 0 0 .0 0
3 0 ,0 0 0 .0 0
4 0 ,0 0 0 .0 0
5 0 ,0 0 0 .0 0
6 0 ,0 0 0 .0 0
2007 2009 2011
Car sales – operating data
31
Examples
• Dealers• Fiat, VW, Ford, GM most
successful• Auto Brasil
• Rental operators• Locamerica, Hertz
• Retailers• “Loja do carro”
• “Auto malls” and “Cidade do automóvel”
Strengths
• Brand and perceived image/ experience
• Support often directly from the OEM’s
• Flexibility in trade-in cars• Strong media presence
• Tailored to popular customer demand at purchase, hence likely to be an attractive value proposition when for sale
• Often appeal to lower income classes, with older cars
• Occasionally specialized in niches
• Comfort and convenience
• Variety of models and brands
• Flexibility in exchange
Weaknesses
• Used cars not a core business
• Cars often older than 2 years
• Stigma about heavy usage during rental car years
• Weak retail network• Geographical
concentration (SP)• Lower media presence
• No brand recognition (lower reputation market)
• Financing options with higher interest rates
• Lower media presence
• Cars often older than 2 years
• It hasn’t been successful
Points of sale • 3,714 (Anfavea) • 29* • 45,600 (Fenauto) • 71 (Fenauto)
Main players
*Based on the main companies reports and websites.
32
Customers recognize our quality and recommend it!
94.0%92.3%94.0%
2009 2010 2011
Source: based on phone interviews made by the Company with customers started in 2009
2011 - Would you recommend Seminovos? YES!
94.0%
Satisfaction survey
33
1. Company overview
2. Main business divisions
� Car rental
� Fleet rental
� Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
� Earnings release 3Q12
Agenda
34
38%57%
5%
2011 Consolidated overview
34%16%
50%
Revenues: R$2,918.1 million EBITDA: R$821.3 million
35
Consolidated net revenuesR$ million
Rental revenues grew 13.6% in the quarter. Seminovos revenues were impacted by the IPI reduction.
537,4 655,0 842,9 898,51.175,3
1.450,01.057,4 1.213,9
362,9 412,3
588,8850,5
980,8 922,4
1.321,91.088,0
1.157,3
394,6 394,7
1.468,1
2006 2007 2008 2009 2010 2011 9M11 9M12 3Q11 3Q12
Rental Seminovos
1,126.2
1,505.5
1,823.72,145.4
2,371.2
2,918.1
757.5 807.0
1,820.9
2,497.2
36
Consolidated EBITDA R$ million
EBITDA margin was impacted by the increase in properties rentals and personnel expenses.
Divisions 2006 2007 2008 2009 2010 2011 9M11 9M12 3Q11 3Q12
Car Rental 42.7% 45.0% 43.5% 39.8% 43.5% 43.9%* 43.8%* 41.1% 45.7%* 40.7%
Fleet Rental 70.7% 70.3% 67.5% 67.5% 66.7% 66.8%* 67.0%* 66.3% 68.3%* 66.7%
Rental Consolidated 52.4% 53.6% 51.2% 49.3% 50.7% 51.2%* 51.1%* 49.4% 53.1%* 49.5%
Used Car Sales 4.6% 5.5% 5.6% 1.1% 2.6% 2.8% 3.1% 4.2% 1.9% 4.9%
*It considers not only the adjustment of the accessories but also the reversal of the non-recurring provisions of R$10.6 million in 3Q11.
223.7216.2
649.3603.0
821.3
649.5469.7504.1
403.5311.3
2006 2007 2008 2009 2010 2011 9M11 9M12 3Q11 3Q12
Proforma EBITDA margin for rental divisions:
37
Average depreciation per carin R$
1,683.90
4,647.40
3,084.40
939.10
332.90
1,536.00
2,577.002,546.00
2006 2007 2008 2009 2010 2011 9M12 3Q12* Annualized
*
*Hot used car market
Financial crisis effect
Reflex of the IPI reduction
4,133.00
5,549.30 5,831.20
2,383.30 2,395.80
3,509.704,371.70
5,083.10
2006 2007 2008 2009 2010 2011 9M12 3Q12 * Annualized
* *
Hot used car market
Financial crisis effect
Reflex of the IPI reduction
38
Breakdown of the car depreciationin R$
Car rental
* Annualized depreciation of the cars purchased after the IPI reduction.
Average depreciation per car of the cars purchased after the IPI reduction is in line with previous years’ depreciation.
1,199.90 1,304.80
4,050.80
1,213.80
2010 2011 3Q12 3Q12
*
1,536.00 1,683.90
Cars’ average depreciation Accessories’ average depreciation
*
Cars purchased after the IPI reduction
Cars purchased before the IPI reduction
39
Additional depreciation as a result of the IPI reduction R$ million
Division
Additional depreciation Cars by year of maturity of estimated useful life (quantity)
Accounted Estimated Total 2012 2013 2014 2015 Total
2Q12 3Q12 Subtotal After 3Q12
Car rental85.0 20.0 105.0 (*) 11.0 116.0 28,433 8,059
133 4 36,629
73.3% 17.2% 90.5% 9.5% 100.0% 77.6% 22.0% 0.4% 0.0% 100.0%
Fleet rental 15.0 4.5 19.5 (*) 45.0 64.5 2,703 9,772 10,954 3,381 26,810
23.3% 6.9% 30.2% 69.8% 100.0% 10.1% 36.4% 40.9% 12.6% 100.0%
Consolidated 100.0 24.5 124.5 (*) 56.0 180.5 31,136 17,831 11,087 3,385 63,439
90.5% of the additional depreciation in car rental division was already accounted.
Fleet as of Sep/12
40
Consolidated net incomeR$ million
Excluding the additional depreciation of R$24.5 million, deduced of the income tax, 3Q12 net income would have reached R$87.6 million.
Reconciliation EBITDA x net income 2009 2010 2011Var. R$ Var. % 9M11 9M12 Var. R$ Var. % 3Q11 3Q12 Var. R$ Var. %
Consolidated EBITDA 469.7 649.5 821.3 171.8 26.5% 603.0 649.3 46.3 7.7% 216.2 223.7 7.5 3.5%
Cars depreciation(172.3) (146.3) (201.5) (55.2) 37.7% (143.5) (309.8) (166.3) 115.9% (53.9) (86.5) (32.6) 60.5%
Other property and equipament depreciation (21.0) (21.1) (24.1) (3.0) 14.2% (17.4) (23.9) (6.5) 37.4% (5.0) (8.4) (3.4) 68.0%
Financial expenses, net (112.9) (130.1) (179.0) (48.9) 37.6% (137.8) (108.2) 29.6 -21.5% (49.8) (30.4) 19.4 -39.0%
Income tax and social contribution (47.2) (101.5) (125.1) (23.6) 23.3% (91.4) (52.6) 38.8 -42.5% (32.2) (27.0) 5.2 -16.1%
Net income 116.3 250.5 291.6 41.1 16.4% 212.9 154.8 (58.1) -27.3% 75.3 71.4 (3.9) -5.2%
71.475.3
154.8
212.9
291.6250.5
116.3127.4
190.2
138.2
2006 2007 2008 2009 2010 2011 9M11 9M12 3Q11 3Q12
41
SWOT Analysis: Localiza business platform
• Unrivaled local scale
• Strong footprint in Brazil’s extreme traffic locations
• Vertical integration, creating synergies for all four businesses
• Strong business operating performance and experienced leadership
Strengths
Opportunities
Weaknesses
Threats
•Increase in market share through further consolidation of Brazilian rental car market
•Underdeveloped fleet outsorcing in Brazil
•Upcoming mega events in Brazil
•Positive outlook for Brazilian business and tourism
•Any measures of the Brazilian government which impact car sales prices, potentially lowering asset value (e.g. new car sales tax)
•New competitors entering the market (rental car or fleet management)
•Increasing fuel price
• Strong focus on airport locations
• Renewal of airport concessions costly
• Dependence on passengers travelling by air (growth limited by Brazilian infrastructure)
• Weak footprint outside of Brazil, resulting in exposure to national economic development
• Dependence on long-term capital to finance renewal of fleet
According to Roland Berger report as of June 21, 2012
Localiza’s brand is top of mind in Brazil.
Localiza doesn’t see it as a weakness or a threat
42
1. Company overview
2. Main business divisions
� Car rental
� Fleet rental
� Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
� Earnings release 3Q12
Agenda
4343
Unleveraged free cash flow - FCF
(*) Without technical discount deduction up to 2010 (see item 17 – Glossary, page 23)
Free cash flow - R$ million 2006 2007 2008 2009 2010 2011 9M12
EBITDA 311.3 403.5 504.1 469.7 649.5 821.3 649.3
Used car sales net revenues (588.8) (850.5) (980.8) (922.4) (1,321.9) (1,468.1) (1,157.3)
Depreciated cost of used car sales (*) 530.4 760.0 874.5 855.1 1,203.2 1,328.6 1,038.3
(-) Income tax and social contribution (42.7) (63.4) (52.8) (49.0) (57.8) (83.0) (77.7)
Working capital variation (4.8) 13.3 (44.8) (11.5) 54.5 (83.9) 0.4
Cash provided before capex 205.4 262.9 300.2 341.9 527.5 514.9 453.0
Used car sales net revenues 588.8 850.5 980.8 922.4 1,321.9 1,468.1 1,100.1
Capex of car - renewal (643.3) (839.0) (1,035.4) (947.9) (1,370.1) (1,504.5) (1,124.4)
Net capex for renewal (54.5) 11.5 (54.6) (25.5) (48.2) (36.4) (24.3)
Fleet renewal - quantity 23,174 30,093 34,281 34,519 47,285 50,772 40,759
Capex – other property and equipment (32.7) (23.7) (39.9) (21.0) (51.1) (63.0) (64.2)
Free cash flow before growth 118.2 250.7 205.7 295.4 428.2 415.5 364.5
Capex of car for fleet (growth) reduction (287.0) (221.9) (299.9) (241.1) (540.3) (272.0) 57.2
Change in accounts payable to car suppliers (capex) 222.0 (51.0) (188.9) 241.1 111.3 32.7 (206.0)
Net capex for fleet growth (65.0) (272.9) (488.8) 0.0 (429.0) (239.3) (148.8)
Fleet increase – quantity 10,346 7,957 9,930 8,642 18,649 9,178 (2,121)
Free cash flow after growth 53.2 (22.2) (283.1) 295.4 (0.8) 176.2 215.7
44
Debt profileR$ million
Debt profile as of 09/30/2012- principal
The Company is still presenting strong cash position and comfortable debt profile.
The “all in” debt cost was CDI + 107 bps.
52.0
176.0 220.8 192.1
562.0432.0
26.012.7
2012 2013 2014 2015 2016 2017 2018 2019Cash
429.4
45
Debt - ratios
Net debt x Fleet value
END OF PERIOD BALANCE 2006 2007 2008 2009 2010 2011 (**)Until
Sep/12(**)
Net debt / Fleet value 36% 51% 72% 57% 52% 51% 54%
Net debt / EBITDA (*) 1.4x 1.9x 2.5x 2.3x 2.0x 1.7x 1.5x
Net debt / Equity 0.7x 1.3x 2.0x 1.5x 1.4x 1.2x 1.1x
EBITDA / Net financial expenses 4.8x 5.4x 3.8x 4.2x 5.0x 4.6x 6.0x
(*) annualized(**) From January 1st 2011, consider financial statements in IFRS
440.4765.1
1,254.51,078.6
1,281.1 1,363.4 1,326.11,247.71,492.9
1,752.61,907.8
2,446.7 2,681.7 2,447.1
2006 2007 2008 2009 2010 2011 Until set/12
Net debt Fleet value
Comfortable debt ratios.
46
Disclaimer
DisclaimerThe 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’s management, 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 any underwriters we may appoint in connection with an offering of securities in future. 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.
Website: www.localiza.com/ir E-mail: [email protected] Phone: 55 31 3247-7024