Institutional Presentation March, p. 1

Transcription

1 Institutional Presentation March, 2017 p. 1

2 Investment Highlights Profitability and Growth Supported by Five Pillars Market under transformation and with high growth potential Large and growing market at early development stage, with proven resilience to market downturns Profitability enhancement assured by significant investments made Company ready to capture increase in profitability Attractive ROIC in the short term Fastest growing player Fastest growing player, with sound market position Unique value proposition: customer-centric DNA with focus on technology and innovation Innovation and technology at customer service Differentiated business model Business model focused on RAC, with differentiated product offering based on deep market intelligence delivering superior execution p. 2

3 Car Rental Market: Rent a Car + Fleet Management Large and Growing Market in a Transformation Process, with Proven Resilience to Downturns Car Rental Market in 2015 Growing Market Resilient to Downturns CAGR 2007 to 2015: 11.2% The Transformation in Course Creates Opportunities in the Segment Increase in purchasing power of the new income classes (C&D) Year 2000 Year monthly salary = 1 monthly salary = 1 Daily rental price 11 Daily rental price Awareness of this still latent capacity Financial elements reinforce the feasibility of the car rental Interest rate Depreciation Purchase price R$ 16 Billion Market growth in 2015: 10.5% 1 million new clients in 2015 Cultural change The ownership concept is migrating to usership Technology / Innovation Proximity to the client Car rental becomes more relevant in the new urban mobility matrix Premium car during the weekends Popular travel combo including car rental Source: Movida, ABLA, Fenabrave, Fenauto, IBGE and public information p. 3

4 Used Car Sales Market Large and Growing Market with Proven Resilience to Market Downturns # of seminovos 1 sold in ,637,524 Potential addressable market 2015 Average price in R$29,933 Seminovos 1 market in 2015 R$79 billion 0.2% 0,8% Share Movida 8.6 million used cars 2.6 million Seminovos 1,2 21 thousand Movida Total Brazilian fleet 50 million with average age of 9 years Movida s target market presents growth even in periods of falling new-vehicle sales million cars Installed capacity of 5 million cars % % % New cars Used (includes seminovos 1 ) Seminovos 1 (< 3 years) Source: Movida, ABLA, Fenabrave, Fenauto, IBGE, Sindipeças and public information Note: (1) Used cars with up to 3 years of use, (2) Estimated number by the proportion of used cars in relation to the total of vehicles (passenger, light and heavy commercial vehicles and motorcycles) published by Fenabrave and the proportion of the seminovos vehicles in relation to the total of vehicles published by Fenauto; (3) Average price of used cars from Movida, Localiza and Unidas p. 4

5 Movida: Solid Track-Record of Growth and Transformation 2 nd Player in Brasil ACQUISITION 1st fleet management in 1989 Largest inbound logistics company in the automotive industry Authorized dealership in retail since 1995 Expertise in procurement and sale with Brazil s largest automakers (1995) Largest buyer of heavy vehicles in Brazil and 2nd largest buyer of light vehicles 29 Stores 2,400 Cars 2.1% Mkt share RAC 82 Stores 36,875 Cars 5.8% Mkt share RAC Premium Market 179 Stores 52,723 Cars 9.9% Mkt share RAC Stores 64,223 Cars 2016 Founded in São Paulo NET REVENUES: R$93 mm R$450 mm R$1.2 bn R$1.9 bn NET REVENUES Receita Líquida EBITDA EBITDA EBIT EBIT NET INCOME Lucro Líquido ANNUALIZED ROIC ROIC Anualizado NET DEBT / EBITDA RAC Stores USED CARS SALE STORES TOTAL FLEET Frota Total R$1,893 mm R$269 mm R$191 mm R$32 mm 8.3% 3.4x 183 stores 59 stores 64,223 cars Source: Movida Data as of 2016 p. 5

6 Differentiated and Integrated Business Model Customer-centric DNA and differentiated team combined with constant search for innovation and technology The most technologically advanced company in the market Client time management is a priority Focus on exceeding clients expectations Growth in underexplored segments (65% retail) Rent a Car (RAC) (Main focus) 77.1% of service revenues 1 Higher market concentration 34.9% of total net revenues 1 Fleet Management (FM) 22.9% of service revenues % of total net revenues 1 Used Car Sales 54.7% of total net revenues 1 JSL s experience allowed for assertive car purchase and sale strategy since the beginning of operations Capture of market opportunities allowed: Stores with significantly superior infrastructure compared to the market Lower cost base Continuity of JSL s +27 years of experience Selective growth with focus on profitability RAC scale leverages Fleet Management growth and profitability Market intelligence: Fleet profile designed to meet clients desire and maximize sale price Pioneer in introducing new car models, brands and services Movida exclusive offer Movida exclusive offer HB20 Audi A3 Duster HB20S Automático Mercedes C180 Mercedes Vito Renegade Mobi Introduced in Nov-14 Movida exclusive offer until 2016 Introduced in Dec-14 Introduced in May-15 Introduced in Jun-15 Introduced in Oct-15 Introduced in Dec-15 Introduced in Nov-16 Introduced in Dec-16 Source: Movida Note: (1) Figures as of 2016 p. 6

7 Recognized Brand with High Client Satisfaction Improving brand awareness with clients Movida s top-ofmind¹ (in %) 5% + 14p.p. 8% 8% 7% 21% 1S14 1H14 2S14 2H14 1H15 1S15 2H15 2S15 1H16 1S16 strong reputation with travel agencies Recommendations by travel agencies² (in %) Movida Localiza Unidas 14% 68% 82% Hertz 9% and best evaluated company in customer satisfaction surveys 1 st Value for money (cost/benefit) 1 st Value for money (cost/benefit) 1 st Car cleanliness 1 st Stores location 1 st 1 Car overall condition st Employees service Hygiene, cleanliness and maintenance Source: Movida, IBGE and Infraero Note: (1) Top-of-mind surveys conducted in São Paulo, Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife and Ribeirão Preto, (2) Based on 22 travel agencies that recommend car rental companies 1 st p. 7

8 Strategy focused in Rent a Car (RAC) With ~76% of its Fleet Dedicated to the RAC Segment, Movida is Focused on High Value Added Services B2B Financial Operation: Fleet Management Customized services as a differentiator Service Focus: RAC Unique and tailor-made services B2C Ouro Verde R$754 mm Locamerica R$402 mm Unidas R$652 mm Localiza R$2,080 mm R$857 mm 100% 100% 50% 50% 69% 31% 77% 23% Key: RAC Revenue Fleet Management Revenue Fleet Management RAC Commoditized services Lower barriers to entry Lower asset turnover 30 month cycle Higher risk of residual value High value added services Higher revenue per car Higher barriers to entry Economies of scale Benefits from broad network Brand recognition Nationwide reach Expertise in asset procurement and sale Higher asset turnover 12 month cycle Lower risk of residual value Growth potential Innovations Yield management Market intelligence IT system Source: Movida and Company files p. 8

9 RAC Competitive Differentials in Services, Innovation and Tecnology Direct Sales Online Sales Full range of value-added services... Movida Exclusive Innovative Services... With positive impacts on several devices and business areas... App Mobile Web Site Tablet Loyalty Facebook Messenger Bot Mobile apps in all platforms Movida Express BI Travel Agency Stores Express return Use of tablets for vehicle return Carbon free rental Movida Volt Recharge station for electric bicycles... Positioning Movida ahead of the market in Brazil in terms of online sales penetration Movida Innovations 92% 49% 49% 4G Wi-Fi connection Loyalty program 27h daily rates 3 complimentary hours at the return day 8% 51% 51% CD and USB connections 10% 78% 60% Full tank inclued in the rate Source: Movida and Euromonitor Mobile website Movida radio station Direct Agents 90% 22% 40% p. 9

10 RAC Market Share Growth with the Highest Revenue per Car in the Market Fastest growing player in the market (42% of market growth) with the highest revenue per car in 2015 Opening of 27 RAC stores and 36 Used Cars Stores (Seminovos) in 2016 RAC fleet end of period ( 000 cars) RAC Market share (%) RR 1 1 AP % 95% Market Share % 27.3% 6.9% 59.9% Market Share % 24.2% 6.1% 59.8% 1 AM PA AC RO MT 3 MA 2 2 TO PI BA GO DF 6 4 MG MS ES SP RJ 11 4 PR SC 4 CE RN PB PE AL SE RS Others Unidas Localiza Movida RAC Stores: 181 Franchisee: 2 Used Cars Stores: 59 Source: Movida, companies filings and ABLA (Brazilian RAC association) Note: (1) Including franchised fleet p. 10

11 RAC Financial and Operational Highlights # of cars and stores EBITDA and EBITDA Margin , % 34.4% 31.8% , , Monthly average revenue per car (R$) EBIT and EBIT Margin 24.8% 19.6% 26.8% 177 1, % 1, , p. 11

12 Fleet Management Focus on Profitability, with a Significant Growth in the Revenue per Car Growth Opportunities Low penetration (only 12% of the corporate fleet is outsourced) Economic scenario stimulates migration to outsourcing Scale achieved in RAC increases competitiveness IMPROVED SELECTION OF CONTRACTS GENERATED AN INCREASE IN REVENUE BY CAR # of cars Monthly average revenue per car (R$) 17,667 15,597 15,088 1, % 1, Fontes: Movida p. 12

13 Used Car Sales Higher Bargaining Power Guarantees a Greater Profitability Third-party Store 37% Lot Sales (own stores) 20% Retail Sales (own stores) 43% Consolidated Strong and longstanding relationship with automakers Expertise in purchase and sale of vehicles Scale reached by Movida Increased competition in the automotive market Sustainable purchasing power Channels: sale price performance / acquisition price performance -6% -2% 0% 1% -1% -3% 0% 1% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Direct Sales of New Vehicles by Automakers 1-1% -5% -1% -3% 0% 1% 2% 77% 79% 79% 76% 75% 70% -16% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 23% 21% 21% 24% 25% 30% Direct Sale Retail Lower Concentration Increasing Competitiveness in Automotive Market Automakers market share 9% 11% 3% 2% 9% 9% 7% 7% 16% 26% 32% 37% 43% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 + Additional Revenue Others 15% Players Top 5 85% 2 Others 46% 17 Players Top 5 54% 2 6% 4% 3% 4% 5% 2% -1% -5% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Sources: Anfavea, Fenabrave, Fenauto and ABLA Notes: (1) Number from National Automobile Manufacturers Association - ANFAVEA, 4 largest automakers of ANFAVEA include Fiat (FCA), Ford, General Motors and Volkswagen & Audi. (2) 5 largest automakers which sell to rental car companies include Fiat (FCA), Volkswagen, General Motors, Ford and Renault p. 13

14 Used Cars Sales Financial and Operational Highlights # of cars sold Net revenue from asset sold (R$ million) % +75.8% 32, , ,036 5, Number of Cars Sold Number of Stores Average ticket (R$ per car) Gross margin (%) +14.7% 32, % +2.6 p.p. 6.0% 28,168 21, % p. 14

15 Consolidated Figures In R$ million Net Revenue 1,893 EBITDA , EBIT Net Income p. 15

16 Net Income In R$ million 191 (142) (80) 2015 (62) 2016 (17) 32 EBIT 2015 Increase EBIT 2016 Financial Expenses Taxes Net Income Net Income impacted by the infrastructure construction and growth p. 16

17 FCFF and CAPEX In R$ million Free Cash Flow to Firm EBITDA Non Cash Cost of Asset Sold Tax + Working Capital Operational Cash Flow Renewal CAPEX (128) (484) (906) Cash Flow Before Expansion CAPEX Expansion CAPEX (660) (918) (834) Free Cash Flow to Firm (292) (474) (77) Increase of 397 CAPEX Vehicles Renewal Expansion Stores Others Total Asset Sold Revenue Net CAPEX p. 17

18 Indebtness In R$ million Amortization Shedule R$ 1, Cash Post IPO* forward Debt ratios Post IPO* Net Debt / PP&E 0,5x 0,4x 0,2x Net Debt / EBITDA 3,2x 3,4x 1,5x Net Debt / Equity 1,0x 1,3x 0,6x EBITDA / Net Financial Expenses 3,1x 1,9x 1,9x 2017 and 2018 Dividends: 25% * Considers R$508.4 million on cash due to the inflow of funds from the IPO held on February 8, 2017 p. 18

19 Highlights CLIENT-CENTRIC DNA INNOVATION AND TECHNOLOGY BRAND POSITIONING GOVERNANCE BUSINESS MODEL GROWING MARKET DIFFERENTIATED TEAM ROIC Unique business model enables sustainable and attractive profitability p. 19

20 Appendix p. 20

21 Culture, Experience, Know-How and Corporate Governance Movida Absorbed Culture, Experience and Know-How from JSL, Combined with the Best Practices in Corporate Governance in the Market Board of Directors Related Party and Governance Principles Board Members Experience Dividends Policy Fixed dividends of 25% of Net Income for 2017 and 2018 Fernando Antônio Simões Chairman Adalberto Calil Age: 49 Shared Infrastructure Independence of the parties Limited to 1.0% of Movida s net revenues Approval by independent members for larger percentages 5 year contract with termination clause Office rentals, tax properties, IT, energy, phone, etc Age: João Batista de Almeida 66 Cars Purchase Policy At Movida s sole discretion, Movida will be able to add JSL s cars with automakers under the same commercial conditions Purchases that JSL undertakes must be approved by independent members Age: 59 GAZETA MERCANTIL Ricardo Florence dos Santos Independent member Age: 61 Cars Sales Movida will be able to sell at its sole discretion up to 10% of its cars to JSL and its authorized dealerships Sales must be approved by the independent committee and follow the same conditions as sales to third party authorized dealerships in the previous 60 days Marcelo José Ferreira e Silva Independent member Age: 65 Composed by 5 members, with 2 Independent members (40%) Non-Competition Management Compensation Package JSL will not have business related to Movida s activities Movida will not have business related to JSL s activities The independent members of the two companies will decide on cases of conflict Variable compensation composed by cash and stock Premium for the execution of the IPO up to R$ 15 million Both the variable compensation and the IPO bonus will be paid in installments, 20% at closing and the remaining in four equal annual payments, linked to the executive's permanence in the company and in line with the IPO's business plan (ROIC, Net Income, EBITDA and Revenue) p. 21

22 Depreciation In Accordance with Accounting Rules and in Line with Best Market Practices, the Depreciation Rate is set as a Function of the Assets Real Purchase and Sale Prices Expertise & Market Intelligence + Fleet Mix + Scale & Bargaining Power = Purchase Price Used Cars Market Conditions Fleet Mix Favorable fleet, attractive in the secondary market + + Sales Channel Migration to own stores model = Sale Price 9,0% Retail sale spread Depreciation Rate -7,5% 1,5% Store SG&A Depreciation 1 2-3% das commissions comissões 2 1 3,0% "Buffer" for book value Decreasing Depreciation per Car 2 In R$ per year RAC Fleet Management Consolidated 12.0% 10.5% 10.5% 10.5% 8.0% 8.0% 8.0% 8.0% 4.0% 4.0% 4.0% 4.0% 7.9% 6.8% 6.4% 6.4% 2.4% 2.4% 1.5% 1.5% 4.2% 4.3% 3.5% 3.3% 3,624 3,483 2,993 3,053 3,303 3,426 1,308 1,645 1,751 1,874 1,079 1, ,533 2,407 2,442 2,446 2,217 2,302 1,812 1,921 1,393 1,334 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Depreciation per car LTM Depreciation rate 3 Depreciation per car LTM Depreciation rate 3 Depreciation per car LTM Depreciation rate3 Source: Movida Note: (1) Sales commissions received by Movida (F&I), (2) Depreciation per car calculated based on LTM total depreciation divided by the average of RAC and Fleet Management total fleet during the period, (3) End-of-period depreciation rates adopted by the company p. 22

23 Depreciation Assumptions SG&A 8.2% SG&A / car takes into consideration a normalized basis, excluding the impact of the ramp-up of operations (stores opening) Seminovos SG&A per Car (as % of Acquisition Price) 18.5% 8.2% 6.7% (monthly figures) 2016 Normalized Upside #Stores #Cars sold / store Seminovos SG&A / store (R$ 000) Seminovos SG&A / car sold (R$ 000) Average Acquisition Price / car sold (R$ 000) Seminovos SG&A / Car (as % of Acquisition Price) 48 (average) 27 (average) 184 (maturation effect) Depreciation Assumption 59 (end of 2016) 49 (mature store) 148 (matured base) 59 (as of today) 60 (potential) 148 (matured base) % 8,2% 6.7% Seminovos EBITDA Margin Analysis (2016) Seminovos (2016) - R$ mm Actual Adjustment Normalized Net Revenues 1, ,036.0 SG&A RAC Cars Sold in Own Stores ('000) SG&A / RAC Car Sold in Own Stores EBITDA (40.2) EBITDA Margin (3.9%) 3.1% Breakdown Analysis (2016 R$ mm) Total RAC Own Stores (~62%) The residual value of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. International Accounting Standards Board IFRS / IAS 16 Property, Plant and Equipment Source: Movida p. 23

24 p. 24