Earnings Conference Call 3Q17. October 26 th, 2017

Transcription

1 Earnings Conference Call 3Q17 October 26 th, 2017

2 Agenda Highlights Sector Background Operating Performance Financial Performance Q&A 2

3 Agenda Highlights Sector Background Operating Performance Financial Performance Q&A 3

4 Highlights For a further quarter, there was a positive evolution in the Company's net income and operating income. The net income rise up % compared to 3Q16, reaching a new level of net margin. Seminovos Results ALL TIME HIGH EBITDA EBITDA Margin¹² ALL TIME HIGH 6,9% 4,1% 2,8% 5,6 3,2 2,0 5,1% 4,5 7,7% 7,7 12,1% 13,4% 10,5% 10,8% 9,5 11,0 14,0 19,8 68,4% 63,7% 63,8% 64,5% 61,1% 60,8% 61,7% 107,2 57,9% 58,2% 56,2 58,5 60,7 62,7 63,0 62,4 65,6 65,5 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Gross Margin R$ Million EBITDA Margin R$ Million Net Income Locamerica¹ ALL TIME HIGH Net Income Net Margin¹² ALL TIME HIGH 12,1% 12,4% 12,8% 15,2 4,9 20,1 5,5% 5,5 7,3% 7,9% 8,0% 7,6 8,0 7,8 12,4 12,6 20, % 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Reported Net Income Non Recurring events Locamerica Net Income Net Margin R$ Million ¹ Exclude non recurring expenses. ² Margin calculated on retail net revenue bases. 4

5 Agenda Highlights Sector Background Operating Performance Financial Performance Q&A 5

6 Sector Background In 3Q17 the sale of new cars market presents a growth compared to 3Q16. The used segment market continues to be very resilient, especially in the Used cars segment, whose sales volume was +19.3% higher compared to 3Q16. Sales of Vehicles in Brazil¹ Used Vehicles vs. New Vehicles ,0 x 5,3 x 5,0 x 4,9 x +5.9% +14.7% ,0 x 2,3 x 2,5 x 2,6 x 2,5 x 2,6 x 4,0 x 3Q16 3Q17 3Q16 3Q Q17 2Q17 3Q17 Used Vehicles New Vehicles Used Cars Sold / New Cars Licensed Sales of Used Vehicles by Age LCAM Sales & Market-Share ALL TIME HIGH ,46% 0,37% 0,33% 0,39% 297 4, ,8 3,1 3, % +42.7% Q16 3Q17 Up to 3 years From 4 to 8 years From 9 to 12 years More than 13 years 3Q14 3Q15 3Q16 3Q17 # Cars sold by Locamerica % Market-Share used cars segment ¹ Source: FENABRAVE, FENAUTO 6

7 Agenda Highlights Sector Background Operating Performance Financial Performance Q&A 7

8 Operating Performance Throughout 3Q17 adding 1.9 thousand vehicles. We also started the fleet renewal process, whose impact can be seen in a decrease in the average age of the operating vehicles. Commercial Pipeline New Contracts New # of Cars in Dispute # of Vehicles R$ Million 23,2 25,2 19,9 23,7 19,7 23,1 22,2 26,2 24, , , ,8 46,5 75,2 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Average Fleet Age 3Q16 4Q16 1Q17 2Q17 3Q17 Average Utilization Rate 15,9 15,7 16,4 17,8 18,5 18,6 20,2 18,9 18,8 96,4% 96,7% 96,8% 96,8% 97,1% 97,1% 96,7% 96,8% 96,8% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 In Months 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Rental Fleet as % of Operational Fleet 8

9 Operating Performance In 3Q17, the operating fleet grew by 4.4% compared to 2Q17. The fleet in stock increased by +2.3 p.p, returning to the levels of Total Fleet of the last three quarters to 2Q17. Total Fleet Breakdown Cars Available for Sale Operating Demobilization Deployment Cars available for sale As % of Total Fleet 43, , ,8% 9,0% 7,2% 6,1% 5,9% 5,5% 5,4% 5,7% 26, % ,5% Q16 2Q17 3Q17 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9 9

10 Agenda Highlights Sector Background Operating Performance Financial Performance Q&A 10

11 Financial Performance Net rental revenue increased +53.7% in 3Q17 when compared to the same period of the last year, driven by the increase of 65.7% in the number of daily. # Rental Days Avg. Tariff Net Rental Revenues # Rental Days Avg. Monthly Tariff (R$ / Month) R$ Million +18.7% % +65.7% +53.7% 361, , ,0 156,8 3Q16 3Q17 9M16 9M17 ¹ 3Q16 3Q17 9M16 9M17 ¹ ¹ Contemplate 9 months of Locamerica and Auto Ricci S.A. from the month of May 11

12 Financial Performance In the quarter, there was a significant expansion of sales through retail stores, which reached 64.6% of the revenues of Used cars segment, contributing to a record gross profit, +1.3 p.p higher than the 2Q17. Used cars segment Revenues Used Cars segment Results Retail Wholesale Retail as % of Total Revenues Gross Margin R$ Million 63,8% 64,6% 47,1% 365,3 51,1% 161,7 233,2 +48,7% 123,1 148,3 99,7 95,8 51,0 138,4 132,1 48,8 52,5 3Q16 3Q17 9M16 9M17 6,9% 5,6 4,1% 2,8% 3,2 2,0 5,1% 4,5 7,7% 7,7 13,4% 12,1% 10,5% 10,8% 9,5 11,0 14,0 19,8 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 ALL TIME HIGH 12

13 EBIT and EBIT Margin In 3Q17 EBIT margin reached 42.7%, growth of 5.0 p.p. in comparison with 3Q16. 3Q p.p. 100,0% 30,0% 15,8% 7,6% 61,7% 24,0% 37,7% Net Rental Revenues Maintenance Costs SG&A Expenses Seminovos Result EBITDA Depreciation Expenses EBIT 3Q17 13,4% 100,0% 29,6% 15,4% 68,4% 25,7% 42,7% Net Rental Revenues Maintenance Costs SG&A Expenses Seminovos Result EBITDA Depreciation Expenses EBIT 13

14 Financial Performance Consistent operating results and better capital allocation are reflected in a significant expansion of return on invested capital and net income. On an annualized basis, ROE reached 17.5%. Financial Expenses Recuring Annualized ROE¹ R$ Million As % of Rental Revenues 28,5% 25,0% 28,8% 24,7% +1.0 p.p 87,7 89,1 29,1 39,2 3Q16 3Q17 9M16 9M17 ² Net Income R$ Million Net Margin 16,3% 16,5% 17,5% 12,8% 12,5% 7,9% 6,9% 10,0% 10,2% % % 45,1 8,0 20,1 21,1 3Q16 3Q17 9M16 9M17 ² 3Q16 4Q16 1Q17 2Q17 ² 3Q17 2 Considering net equity of Locamerica prior to the subscription of shares, paid by the shareholders of Auto Ricci S.A. ¹ Based on the recurring net income into the Company's shareholders' equity. ² Contemplate 9 months of Locamerica and Auto Ricci S.A. from the month of May 14

15 Highlights During 3Q17 completed the 13th Issue of Debentures and in the end of the quarter had in cash an amount higher than of all debts to be payed in the next 12 months. Net Debt Covenants Net Debt / EBITDA LTM Debt / (Debt + Equity) 318,4 76,5 961,5 3,17 x 2,55 x 2,43 x 68,1% 66,2% 67,6% 624,5 132,0 29,1 3Q15 3Q16 3Q17 3Q15 3Q16 3Q17 Amortization Schedule 75,0 R$ Million 294,0 Net Debt (3Q16) Rental Operations Net CapEx Financial Perform. Short Term Interest Payment Auto Ricci debt Other Net Debt Equity (3Q17) Variations 299,5 306,6 214,8 221,5 244,6 260,6 12,9 Cash 12 M 24 M 36 M 48 M 60 M > 60 M 15

16 ANNEX I Income Statement DRE Proforma adjusted for nonrecurring events. 3rd Quarter of 2017 Combined 3rd Quarter of 2017 Combined Vehicle rentals Vehicle sales Sales taxes (14.860) (15.743) Operational Revenues Maintenance costs (44.941) (46.391) Depreciation costs (36.336) (38.531) Cost of vehicles sold ( ) ( ) Rental and vehicle sales costs ( ) ( ) Gross profit Sales, Administrative and general (19.780) (22.983) Depreciation (916) (1.745) Other operational revenues (costs) (1.422) (8) Other operational revenues (costs) (22.118) (24.736) Operating income (EBIT) Financial expenses (51.138) (53.626) Financial income Financial income (expenses) (42.790) (46.546) Earnings before taxes Income tax and social contributions (4.996) (5.144) Current Deferred (6.531) (5.527) Net Income (+) Extraordinary Items, net of Taxes Recurring Net Income Recurring EBITDA EBITDA Margin 62,5% 68,4% Unaudited bases used to be comparable. 16

17 Obrigado Q&A Contato: Legal Notice - This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Locamerica and are merely projections and, as such, are based exclusively on the expectations of the Company s management concerning the future of the business. Such forward-looking statements depend substantially on changes in market conditions, the performance of the Brazilian economy, the sector and the international markets, and are therefore subject to change without prior notice.