Institutional Presentation 3Q16

Transcription

1 Institutional Presentation 3Q16

2 The History Company foundation and diversification of services Consolidation of Integrated Logistics Services New business and increase of activities General Cargo Passenger Transportation Concessions Creation of CS Brasil (Concessions) Acquisition Dedicated Services Expansion Heavy Dealerships (Tocantins and Sergipe) Leasing Semi-novos GTF segment Dedicated and customized services Acquisitions Dedicated Services (LUBIANI and GRANDE ABC) JSLG3 IPO Rent-a-car Quick The broadest portfolio of logistics services in Brazil 2

3 Network Branches in 20 states and 4 countries RR AP 24, , Own stores Employees Operating assets Distribution Centers across Brazil Intermodal Logistics Center 1 Dry Port and 1 REDEX Movida RAC Authorized Dealerships light vehicles Authorized Dealerships heavy vehicles Seminovos used light vehicles stores AC Chile AM RO Argentina MT PA MS Uruguay GO RS PR DF SC TO SP MA MG PI BA CE ES RJ PE PB RN AL SE 16 Seminovos used heavy vehicles stores Location of JSL Logística operations Performance in all national territory and Latin America 3

4 Business Units Participation of Net Revenue (LTM) 59.6% 27.1% 13.0% 0.3% Note: In November 2015, we began a corporate restructuring process, with the transfer of assets and liabilities of JSL Locações S.A. (GTF) to other companies of the group through a partial spin-off. As a result, 2015 data are presented on a pro-forma basis for comparison purposes. 4

5 Business Units Logistics 59.6% 27.1% 13.0% 0.3% 5

6 Logistics Participation in Gross Revenue from Services (LTM) Passenger Transportation General Cargo 12% Others 6% 1% Management and Outsourcing (Vehic./Mach./Equip.)* 25% R$4.338 billion 55% Dedicated Services * With adition of services / público / pesados 6

7 Logistics Coverage Multiple Segments 11% 12% 10% 11% 14% 10% Agribusiness Automotive Food and beverage Public Pulp and Paper Steel and Mining 9 other sector represent 32% Dispersed customer portfolio and high customer loyalty x Years of operation Low dependence, no customer exceeds 8% of gross revenue from services for the last 12 months Note: % refering to gross revenue from services in 3Q16 7

8 Logistics Evolution of Services Achievement Internal Expansion Verticalization Replicability C B D E Assets People A Services First activity in new customer Addition of new services Incorporation of resources involved in the activities Extension of the activities to other customer s plants and/or market Services Management of logistic center Storage Internal logistics Harvesting and loading Inbound Outbound Cross docking / milk run Urban distribution 8

9 Logistics Basic Business Model 1 Secure in Revenue 2 Strong Bargaining Power Contracts Period: 2 to 10 years Annual price readjustment Guaranteed minimum volume Penalty for cancelation Specifc assets: obligation of purchase in case of early termination Financing and acquisition of assets Capex pegged to contracts Scale gains in acquisition Service agility in product range Use of specific funding lines Business model provides security on revenue and competitive advantage in the acquisition of assets 9

10 Logistics (R$ Million) Net Revenue EBITDA Sale of assets Services EBITDA Margin on Net Revenue from Services 3,945 3, % 22.9% 24.1% 20.8% 7.4% ,027 1, % % % Q15 3Q Q15 3Q16 Mainly due to the new business model with more costs in contractors and third parties Note: Recurring EBITDA was R$ 703 in 2014, R$ 844 in 2015, R$ 226 in 3Q15 and R$ 210 in 3Q16 10

11 Business Units Movida 59.6% 27.1% 13.0% 0.3% 11

12 Movida Participation in Gross Revenue (2Q16) Daily car rental and mini leasing Car rentals companies with long contracts, minimum of 12 months (average 26 months) Sale of vehicles 35% 10% 55% STORES: 29 in Nov/13, 179 stores in sep/16 SEMINOVOS STORES: 0 in Nov/13 54 in sep/16 12

13 Movida Rational to get in the RAC Segment Activity based on providing services, proven competitive differentiatior proven of JSL Opening of new channel Individuals Scale is fundamental, involving signifcant amounts of operations of purchase and sales of vehicles JSL has great know-how Leverage in the great bargaining power already held by the company JSL is a large fleet owner Market with low competition, no innovation and without focus on customer service 13

14 Movida Evolution of Vehicle Fleet (000) Rent a Car (RAC) Fleet Rental (GTF) Total Average Daily Utilization Rate Monthly Ticket GTF Vehicles RAC Vehicles R$ 88 R$ 83 61% 76% R$ 1,165 R$ 1, Q15 3Q16 3Q15 3Q16 3Q15 3Q16 Strategy fully underway 14

15 Movida (RAC + GTF) and Used-Vehicles (R$ Million) Net Revenue EBITDA Used-Vehicles RAC GTF EBITDA margin on Net Revenue from Services 1, % 38.7% 39.2% 31.8% % % Q15 3Q % % Q15 3Q16 Growth in Revenue and EBITDA reflects investments made in RAC Note: Total net revenue from services has elimination between RAC and GTF, totaling R$385 in 2014, R$632 in 2015, R$169 in 3Q15 and R$221 in 3Q16 15

16 Business Units Authorized Dealerships 59.6% 27.1% 13.0% 0.3% 16

17 Authorized Dealerships Heavy Gurupi Araguaiana Heavy Palmas TO SE Aracaju Itabaiana Light - Original VW São José dos Campos (2) Taubaté (2) Mogi das Cruzes Arujá Suzano Guarulhos (2) São Bernardo do Campo Jacareí São Paulo (2) Light - Avante Ford São Paulo (1) Light Ponto Fiat Guarulhos São Paulo (2) Heavy Transrio MAN Caçapava RS SP RJ Heavy Garibaldi Eldorado Pelotas Heavy Pavuna Nova Friburgo Goytacazes Resende Caxias São Leopoldo 17

18 Authorized Dealerships (R$ Million) Net Revenue EBITDA -17.4% Margin 2.3% 1.6% 2.5% 1.6% -43.2% 1,222 1, % Q15 3Q Q15 3Q16 3 Despite the unfavorable market, JSL has demonstrated resilience in its margins 18

19 Business Units Leasing 59.6% 27.1% 13.0% 0.3% 19

20 Leasing Rational to get in the Segment Greater ease in buying trucks to serve providers of JSL Replaced by newer trucks Possible increase in third-party Contributing to sales of asset Leasing more attractive to trucks on account of the residual value (company can keep the truck at the end of the contract) Gain scale provides increased bargaining power in purchasing vehicles Current status: 251 operations 20

21 Leasing (R$ Million) 2015 LTM 3Q15 3Q16 Net Revenue EBITDA (2.8) 8.2 (0.3) 4.2 Incipient segment, already showing positive results 21

22 JSL Consolidated: (R$ Million) Total Net Revenue EBITDA 8.5% EBITDA margin on Net Revenue from Services 18.7% 25.7% 21.7% 23.1% 20.8% 5,520 5, % 869 1, % 1,538 1, Q15 3Q Q15 3Q16 Revenue growth even with the current economic scenario # Considers elimination between business Note: Recurring EBITDA was R$ 902 in 2014, R$ 1,101 in 2015, R$ 299 in 3Q15 and R$ 288 in 3Q16 22

23 JSL Consolidated: (R$ Million) Net income Margin 1.3 % 0.8% 0.5 % -1.6% Q15 3Q16 Net income reduction due to the change in the nature of certain logistics contracts, the development of Movida and due to a higher net financial expense Note: Reported Net Income was R$ 101 in 2014, R$ 54 in 2015, R$ 9 in 3Q15 and R$ -25 in 3Q16. 23

24 JSL Consolidated - ROIC ROIC 8.3% ROIC 14.1% ROIC -1.5% - Consolidated ROIC: 9.0% Consolidated ROIC 0.2 p.p. above the cost of debt after taxes (8.8%) Considering mature contracts (+ 12 months), spread increases 4.3 p.p. 24

25 JSL Consolidated Free Cash Flow (R$ Million) Free Cash Flow before Growth and Interest JSL consolidated LTM Operating Cash Flow 937 2,168 2,529 Capex and sale of assets Renewal (376) (727) (1,057) Cash Generated before Growth and Interest 562 1,441 1,472 Capex and Sale of Assets Expansion (1,387) (1,509) (1,278) Free Cash Flow to Firm (825) (68) 194 Consistent Cash Flow Generation before capex for expansion 25

26 JSL Consolidated Debt (R$ Million) Net Debt + Suppliers Confirming 5, Suppliers confirming Asset/Debt ratio of 1.1X 5,538 2,847- Light 4,592 Net Debt 2,691- Heavy Net Debt + Suppliers Confirming Assets Leverage Indicators 3Q15 2Q16 3Q16 Covenants Net Debt / EBITDA-A 2.1x 2.1x 2.0x N.A. Net Debt / EBITDA 3.7x 4.0x 4.0x N.A. EBITDA-A / Net interest expenses 4.3x 4.6x 4.4x N.A. Net Debt + Suppliers Confirming / EBITDA-A 2.5x 2.2x 2.2x Max 3.5x Net Debt + Suppliers Confirming / EBITDA 4.3x 4.3x 4.5x N.A. EBITDA-A / Net interest expenses + Confirming Cost 4.1x 3.9x 3.8x Min 2.0x Profile of assets provides liquidity for debt management 26

27 JSL Consolidated Net Debt Structure Selic (14.3% p.a.) 1.3% Pre-fixed (8.8% p.a.) 23.4% TJLP (7.5% p.a.) 7.4% IPCA (8.5% p.a.) 0.4% CDI (14,1% p.a.) 67.4% Net Debt R$4.6 billion Cost of Net Debt + Confirming Payable: 13.3% p.a. Cost of Net Debt + Confirming Payable after taxes: 8.8% p.a. 27

28 Evolution of Debt Amortization Schedule (R$ Million) Gross Debt Suppliers confirming Short-term Long-term 2,339 1,637 1, ,025 1,994 1, EBITDA-A LTM Liquidity Oct/16 to Sep/17 Out/17 to Dec/ until 2025 Liquidity represents 0.9x short-term gross debt with suppliers confirming 28

29 Corporate Governance Other members of Simões family Fernando Antônio Simões Voting Shares 7.2% 10.3% 56.6% 25.9% Total Common Shares: 202,500,000 Base: 09/30/2016 Novo Mercado 100% common shares, 25.7% of wich in Free Float and 0.2% held in Treasury 100%Tag Along Financial and Procurement Committee Fiscal Council Code of Ethics Ethics and Compliance Committee 29

30 Awards and Certifications Received Exame Melhores & Maiores The best company in the transportation sector according to Exame Best and Biggers st place among the best providers of logistics services in Brazil, in the food & beverage, car & car parts, pulp & paper and steelworks industries. 2nd place among the best providers of logistics services in Brazil. Transporte Moderno Magazine The largest company in the cargo highway transportation sector. Fernando Antonio Simões elected personality of the year. Best Companies from Valor Carreira th in the 7,000 to 17,000 employees companies in the award Best in people management Valor 1000 JSL placed 92 th among the Biggest companies in Brazil ABTI Certificate - Brazilian Association of International Carriers Transportation Category PERC 2015 Supply Chain Relationship Excellence Program Winner in the category: customer service: Services and logistics INBRASC Award 2016 JSL Best Road Carrier Elected by choice of the supply chain market without indication. Transparency Trophy Awards those companies with the most transparent financial statements in Brazil. Época Negócios 360º Year Book th place in Transportation sector, for the third consecutive year Certificate Saber Viver For the collaboration of social development in the region Riacho in Aracruz in Espirito Santo. Good practice implemented - VALE 30

31 Social and Environmental Responsability Other social and environmental projects supported by the Julio Simões Institute: Initiatives that minimize environmental impacts: Fleet renewal in up to three years Training on Economical Driving Lower fuel consumption Route optimization system Preventive maintenance of vehicles Proper waste disposal Emissions Control Efficient use of water Social responsibility practices ISO certification 31

32 THANK YOU SO MUCH! APPENDIX

33 New contract with automotive sector: R$ 350 million global Asset light operation, focused on management and intelligence 100% of internal logistics in Resende/RJ plant Capex: R$ 15 million Term: 60 months Seaport and Airport (imports and exports) TGX Line Imports Reception Storage Sequencing 1 Management of the Logistic Center a. Reception b. Verification c. Sequencing d. Transportation to the plant Inbound 2 Internal Plant Logistics a. Reception of parts b. Verification c. Sequencing d. Feeding of production lines e. Logistic planning f. Sorting of parts g. Pilot plant / prototype 3 SKD Operation a. Reception of semiknocked down parts b. Handling c. Verification d. Storage e. Packaging f. Container loading 4 CKD Operation a. Reception of parts and accessories b. Handling c. Verification d. Storage e. Packaging f. Container loading 33

34 Management and Outsourcing of fleets with service Example: Laboratory 2. Transportation of biological materials to hospitals, clinics and laboratories 3. Residential pick-up of medical exams with car and driver 4. Rental of vehicles for sales force 7. Chartering 6. Transportation of biological materials from countryside 1.Transportation of materials from warehouse to laboratory 5.Transportation of client s operational equipment Tracking of the fleet via satellite 34

35 Dedicated Services, Fleet Management and Outsourcing and Passengers Transportation Mining Loading of Ore Transport and satellite monitoring center Rental of vehicle with driver at the client s disposal Highway maintenance Watering of roads Passenger Trasnportation Machine Fueling Transport of ore Selective collection Industrial cleaning Lifting of loads Waste management Waggon loading 35

36 New Contracts Negotiated in 2015 Highlight of the new contracts negotiated Characteristics of the new contracts Logistics Overall revenue of R$2.172 billion 59% negotiated with existing clients (cross selling) 41% of which negotiated with new clients 61% in Dedicated Services and 39% Management and Outsourcing Terms of up to 7 years Global Revenue (R$ mm) Average term (months) CONSOLIDATED NEW CONTRACTS 2, % DEDICATED SERVICES AND PASSENGER TRANSPORTATION 1, % MANAGEMENT AND OUTSOURCING Capex of approximately R$572 million, R$347 million of which in EBITDA Margin 30% 19% 47% 2015 and R$225 million in 2016 Residual Value 64% 45% 72% Unleveraged Nominal IRR 21% Movida s Transformation Exercise of Incremental Revenue from Services (RAC + GTF) 34% R$ R$ 39 GTF incremental revenue Highlighting the growth for RAC in the exercise, over 44% R$ R$ 202 R$ 263 R$ 263 R$ 455 R$ 455 RAC Incremental revenue Gross revenue from services 2015 (GTF) Gross revenue from services 2015 (RAC) * Projection: annualizing revenue based on the operating fleet at Dec/15 (32,137) and assuming the average revenue per vehicle of 2015 Gross revenue from services 2015 Gross revenue from services Incremental Revenue 36

37 Current Moment Net Revenue¹: R$6.6 bi EBITDA: R$1,157 mi Net Income: R$-26 mi Logistics Operations Fragmented and disorganized market Great opportunity of organic consolidation Industry necessity is just beginning Net Revenue¹: R$4.1 bi Assets²: 35,522 Branches²: EBITDA: R$871 mi CS BRASIL Development opportunity of structured services Net Revenue¹: R$855 mi Stores²: 32 EBITDA: R$8 mi Independent but complementary Net Revenue from services¹: R$815 mi Assets²: 57,646 EBITDA: R$271 mi RAC Net Revenue from services¹: R$639 mi Assets²: 42,262 Stores: 179 GTF Net Revenue from services¹: R$202 mi Assets²: 15,384 Movida Seminovos Net Revenue¹: R$963 mi Stores: 54 Net Revenue¹: R$21 mi EBITDA³: R$8 mi Incipient operation Security in granting of credit High potential Synergy with other activities Focus on used trucks and cars Fleet Urban mobility Provision of structured public services ¹ Base LTM ² Base sep/16 Little competition Lack of service Innovation Abundant credit Price dispute We use DNA to serve 37

38 Recurrent exercise of deleveraging Free Cash Flow before Growth and Interest JSL consolidated LTM Desconsidering New operations in R$ million Cenário No sem growth investimento Scenariode expansão Recurring EBITDA 1,157 1,129 Net Debt * EBITDA LTM Leverage index (EBITDA) EBITDA-A LTM Leverage index (EBITDA-A) Others 1,372 Operating Cash Flow 2,529 Capex and sale of assets Renewal (1,057) Cash Generated before Growth and Interest 1,472 Capex and sale of Assets Expansion (1,278) Free Cash Flow to Firm 194 1,293 2,421 1,364 3Q15 3,858 1, , Q16 3,004 1,129 2,7 2, * Excludes confirming payable (Automakers) Without growth 3,858 3Q15 Net Debt (-) 1,364 Cash generated (+) 510 Interests in the period (13.2%) 3,004 3Q16 Net Debt Strong deleverage before growth impact 19% Net debt/ebitda-a from 1.6x in 3Q15 to 1.3x in 3Q16 20% Net debt/ebitda from 3.3x in 3Q15 to 2.7x in 3Q16 38

39 Concept of EBITDA-Added (EBITDA-A) Contract Record (illustrative) year 0 -BRL100,000 Asset Acquisition Free Cash Flow (illustrative) IRR=~15%; NPV=~BRL14,000 Segment of Services +Net Revenue from Services = BRL165,000/year Segment of Asset Sale + BRL72, Operating Costs = BRL 137,000/year (+/-) Taxes 34% Year Financial Statements (BRL) Net Revenues from services 165, , , ,000 (+)Sale of the operating asset 72,000 (=) Net revenue 165, , , ,000 (-)Cost of Asset Sold (72,000) (-)Operating Costs (137,000) (137,000) (137,000) (137,000) (-)Depreciation (7,000) (7,000) (7,000) (7,000) (=)EBIT 21,000 21,000 21,000 21,000 (-/+)Taxes (7,140) (7,140) (7,140) (7,140) (=)Net Profit 13,860 13,860 13,860 13,860 Fixed Assets (BRL) Fixed Assets 100, , , , ,000 (-)Cumulated Depreciation (7,000) (14,000) (21,000) (28,000) (-)Asset Sale (72,000) (=)Net Fixed Assets 100,000 93,000 86,000 79,000 0 Year EBITDA and EBITDA-A(BRL) (=)EBIT 21,000 21,000 21,000 21,000 (+)Depreciation (non cash expense) 7,000 7,000 7,000 7,000 (=)EBITDA 28,000 28,000 28,000 28,000 (+)Cost of Asset Sold (non cash expense) 72,000 (=)EBITDA-A 28,000 28,000 28, ,000 EBITDA-Added ( EBITDA-A ) represents EBITDA plus the residual accounting cost of Asset Sales, which is non-cash, since it represents merely an accounting entry at the time of Sale of Assets. Thus, the Company's management believes that EBITDA-A is a better measure of the financial performance of the business. 39

40 ROIC Exercise that simulates all operations at mature stage (more than 12 months of revenue) JSL - Logística ROIC - LTM 2016/09/30 (R$ million) JSL Consolidated* Movida (RAC + GTF) JSL Concessionárias JSL Logística Operations with 12 months of Revenue Other Operations Other Operations (simulation) Total Net Revenue 6, , , , , ,132.9 Net Revenue from Services 5, , , , ,816.6 EBIT (42.2) margin 11.6% 34.1% -0.6% 10.9% 13.4% -12.2% 13.4% 13.6% 1.4x 0.3x (=) Net Operating Profit Less Taxes (NOPLAT) - A (29.5) (=) Invested Capital - B (excludes the effect of goodwill)¹ 4, , , , , , ,461.8 ROIC - A/B 9.0% 14.1% -1.5% 8.3% 13.1% -2.8% 13.1% 13.1% (=) Invested Capital + Suppliers confirming- B (excludes the effect of goodwill) 5, , , , , , ,554.2 ROIC - A/C 8.0% 9.3% -1.5% 8.1% 12.6% -2.8% 13.1% 12.7% * Represents the consolidation of the financial results of JSL Logística, JSL Concessionárias, Movida and JSL Leasing, exluding inter-company transactions ¹ As recommended by the audit, the ROIC became to disregard the effect of goodwill on Invested Capital 40

41 Some of the statements contained herein constitute additional information that has not been audited or reviewed by the auditors and is based on Management s current opinion and prognoses. Consequently, there may be material differences between said statements and the Company s actual future results, performance and events. Actual results, performance and events may differ substantially from those expressed or implied by said statements as a result of various factors, including the general and economic situation in Brazil and other countries; interest, inflation and exchange rates; changes in laws and regulations; and general competitive factors (at global, regional or national level). Consequently, Management accepts no responsibility for the conformity or accuracy of the additional information in this report that has not been audited or reviewed by the auditors. Said information should be examined and interpreted in an independent manner by shareholders and market agents who should carry out their own analyses and reach their own conclusions regarding the results disclosed herein. JSL S.A. Investor Relations Tel: +55 (11) ri@jsl.com.br