The broadest portfolio of logistics services in Brazil. Institutional Presentation 4Q15

Transcription

1 The broadest portfolio of logistics services in Brazil Institutional Presentation 4Q15

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 (SCHIO) Expansion Heavy Dealerships (Tocantins and Sergipe) Leasing Seminovos 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 + 24,000 84, 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 RN PB PE 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 63% 25% 14% 4

5 Business Units Logistics 63% 25% 14% 5

6 Logistics Participation in Gross Revenue from Services Passenger Transportation General Cargo 12% Others 6% 2% Management and Outsourcing (Vehic./Mach./Equip.)* 24% R$1.026 billion 56% Dedicated Services * With adition of services 6

7 Logistics Coverage Multiple Segments 14% 13% 12% 10% 10% 10% Food and beverage Steel and Mining Public Automotive Municipal and intermunicipal transportation 9 other sector represent 31% Dispersed customer portfolio and high customer loyalty Pulp and Paper x Years of operation Low dependence, no customer exceeds 8% of gross revenues Note: % refering to gross revenue from services (last 12 months in 4Q15) 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 3,945 3, Sale of assets Services Recurring EBITDA EBITDA Margin on Net Revenue from Services 20.7% 22.6% 20.9% 22.6% 5.7% 3,392 3, % % % Q14 4Q Q14 4Q15 The improvement made, mainly in 2014, had a positive impact on EBITDA margin during 2015 Note: Reported EBITDA was R$ 687 in 2014, R$ 778 in LTM, R$ 209 in 3Q14 and R$ 219 in 3Q15 10

11 Business Units Movida 63% 25% 14% 11

12 Movida Participation in Gross Revenue Daily car rental and mini leasing Car rentals companies with long contracts, minimum of 12 months (average 26 months) Sale of vehicles 36% 17% 47% STORES: 29 in Nov/13, 156 stores in Dec/15 SEMINOVOS STORES: 0 in Nov/13 23 in Dec/15 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$ 92 R$ 91 63% 65% R$ 1,422 R$ 1, Q14 4Q15 4Q14 4Q15 4Q14 4Q15 Strategy fully underway 14

15 Movida (RAC + GTF) and Used-Vehicles (R$ Million) Net Revenue EBITDA 1,271 Used-Vehicles RAC + GTF EBITDA margin on Net Revenue from Services 44.9% 40.5% 43.2% 37.5% % % Q14 4Q % % Q14 4Q15 Growth in Revenue and EBITDA reflects investments made in RAC 15

16 Business Units Authorized Dealerships 63% 25% 14% 16

17 Authorized Dealerships Heavy Gurupi Araguaiana Heavy Palmas TO SE Aracaju Itabaiana Light - Original VW São José dos Campos Taubaté Mogi das Cruzes Arujá Caçapava Suzano Diadema São Bernardo do Campo Jacareí Timóteo Taubaté São Paulo (7) Light - Avante Ford São Paulo (1) Light Ponto Fiat Guarulhos São Paulo (3) RS SP RJ Heavy Garibaldi Eldorado Pelotas Caxias Heavy Pavuna Nova Friburgo São Leopoldo 17

18 Authorized Dealerships (R$ Million) Net Revenue Recurring EBITDA -17.4% Margin 2.3% 1.6% 1.1% 1.5% 1,222 1, % -43.2% Q14 4Q % Q14 4Q15 Despite the unfavorable market, JSL has demonstrated resilience 18

19 Business Units Leasing 63% 25% 14% 19

20 Leasing Rational to get in the Segment Grater 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: 122 operations and 132 assets 20

21 Leasing (R$ Million) Q14 4Q15 Net Revenue EBITDA (1.1) (2.8) (1.1) 0.0 Incipient segment, already showing good growth 21

22 JSL Consolidated - ROIC ROIC 8.9% ROIC 13.6% ROIC 1.4% - Consolidated ROIC: 9.3% Consolidated ROIC 0.7 p.p. above the cost of debt after taxes (8.6%) Considering mature contracts (+ 12 months), spread increases 4.2 p.p. 22

23 JSL Consolidated: (R$ Million) Total Net Revenue 8.5% Recurring EBITDA EBITDA margin on Net Revenue from Services 18.7% 21.7% 22.0% 19.2% 22.0% 5,520 5, % 903 1, % 1,430 1, Q14 4Q Q14 4Q15 Improvement in operating margin even with the current economic scenario # Considers elimination between business Note: Reported EBITDA was R$ 869 in 2014, R$ 1,092 in 2015, R$ 240 in 4Q14 and R$ 285 in 4Q15 23

24 JSL Consolidated: (R$ Million) Recurring Net income Margin 1.8 % 0.9% 2.0 % 0.5% Q14 7 4Q15 Reduction due to the maintenance of the growth and the increase in the cash carring cost Note: Reported Net Income was R$ 72 in 2014, R$ 47 in 2015, R$ 24 in 4Q14 and R$ 7 in 4Q15. 24

25 JSL Consolidated Free Cash Flow (R$ Million) Free Cash Flow before Growth and Interest JSL consolidated Operating Cash Flow 974 1,126 1,160 2,177 Renewal Capex (280) (470) (505) (727) Cash Generated before Growth and Interest ,450 Capex and Sale of Assets Expansion (696) (1,007) (1,447) (1,509) Free Cash Flow to Firm (2) (351) (792) (59) Consistent Cash Flow Generation before capex for expansion 25

26 JSL Consolidated Debt (R$ Million) Net Debt + Confirming Payable (Automakers) 4, Confirming Payable Debt/Asset ratio of 1.1X 5,100 2,575 - Light 4,023 Net Debt 2,524 - Heavy Net Debt + Confirming Payable Assets Leverage Indicators 4Q14 3Q15 4Q15 Covenants Net Debt / EBITDA-A 2.6x 2.1x 2.0x Max 3.0x Net Debt / EBITDA 4.0x 3.6x 3.7x N.A. EBITDA-A / Net interest expenses 4.5x 4.3x 4.5x Min 2.0x Net Debt + Confirming Payable / EBITDA-A 2.8x 2.5x 2.4x Max 3.0x Net Debt + Confirming Payable / EBITDA 4.4x 4.3x 4.2x N.A. EBITDA-A / Net interest expenses + Confirming Cost 4.2x 4.1x 3.8x Min 2.0x Profile of assets provides liquidity for debt management Despite of the investment for growth, the company leverage decreased 26

27 JSL Consolidated Net Debt Structure 7.0% p.a. 10.7% p.a. TJLP IPCA 0.6% 8.0% Pre-fixed 6.0% p.a. 30.5% R$4.0 billion 61.0% 14.1% p.a. Linked to CDI Cost of Net Debt + Confirming Payable: 13.0% p.a. Cost of Net Debt + Confirming Payable after taxes: 8.6% p.a. 27

28 Evolution of Debt Amortization Schedule (R$ Million) Corporate Debt Short-term Long-term EBITDA-A 2015 Liquidity until 2025 Actual Cash liquidity covers debt amortization almost up to the end of

29 Corporate Governance Other members of Simões family Fernando Antônio Simões Voting Shares 7.0% 10.1% 55.5% 27.3% Total Common Shares: 211,000,000 Novo Mercado 100% common shares, 27.3% of wich in Free Float and 2.2% 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 Época Negócios 360º Year Book th place in Transportation sector, for the third consecutive year 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 Supplier of the Year 2014 Hyundai 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 1H15 Highlight of the new contracts negotiated Characteristics of the new contracts Overall revenue of R$853 million 78% negotiated with existing clients (cross selling) 68% in Dedicated Services and 32% Management and Outsourcing Terms of up to 6 years Capex of approximately R$156 million Global Revenue (R$ mm) CONSOLIDATED % DEDICATED SERVICES 577 Logístics 31% MANAGEMENT AND OUTSOURCING (light vehicles with the addition of service, public and heavy) 268 Movida 1% MANAGEMENT AND OUTSOURCING (with small addition of service) 8 IRR sensibility analysis Average term (months) IRR sensibility due to the residual value variation Estimated Residual value variation: 51.4% 56.4% 61.4% 66.4% 71.4% Residual value variation in p.p.: -10 p.p. -5 p.p. +5 p.p. +10 p.p. IRR value variation: 16.0% 17.4% 18.7% 19.9% 21.2% IRR value variation in p.p.: -2.7 p.p p.p p.p p.p. EBITDA Margin Residual Value Unleveraged Nominal IRR 24.9% 61.4% 18.7% 19.4% 33.4% 45.3% 75.8% 59.8% 71.1% Gross Gross Revenue from Services (R$ million), (R$ Average million), Monthly Average Revenue Monthly per car (R$) Revenue and Fleet (units) per car of Movida (R$) and Fleet (units) of Movida (Rent a Car) +76% cars added (RAC) in 1S15 Units 14, Units 25,212 1,738 1, * Projection assuming the average ticket and the average utilization rate remained flat (LTM based on June / 2015) Average Operational Fleet Average Monthly Revenue per car LTM (based on 06/ 30/ 15) LTM Jun/ 2015 End of Period Fleet Average Monthly Revenue per car Annualized with LTM average ticket and average occupancy rate LTM Gross Revenue From Services (base jun/ 15) Incremental revenue if kept the volume and price * In this additional projected revenue was not included the R$853 million volume of new service providing agreements. 36

37 Current Moment Net Revenue¹: R$6.0 bi EBITDA³: R$1,101 mi Net Income³: R$53 mi Logistics Operations Fragmented and disorganized market Great opportunity of organic consolidation Industry necessity is just beginning Net Revenue¹: R$3.9 bi Assets²: 30,772 Branches²: 225 EBITDA³: R$809 mi CS BRASIL Development opportunity of structured services Net Revenue¹: R$1.0 bi Stores²: 36 EBITDA³: R$16 mi Independent but complementary Net Revenue from services¹: R$689 mi Assets²: 53,439 Stores 4 : 156 EBITDA³: R$279 mi RAC (Movida Rent a Car Ltda) Net Revenue from services¹: R$435 mi Assets²: 37,126 GTF (JSL Locações Ltda) Net Revenue from services¹: R$254 mi Assets²: 16,313 Movida Seminovos Net Revenue¹: R$583 mi Net Revenue¹: R$ 5 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 Little competition Lack of service Innovation Abundant credit Price dispute We use DNA to serve ¹ 2015 ² 2015 ³ Recurring, exclude non recurring items 4 Nov/15 37

38 Recurrent exercise of deleveraging Free Cash Flow before Growth and Interest JSL consolidated 2015 Desconsidering New operations in R$ million Cenário No sem growth investimento Scenariode expansão Recurring EBITDA¹ 1,101 1,084 Net Debt * EBITDA LTM Leverage index (EBITDA) EBITDA-A LTM Leverage index (EBITDA-A) Others 1,076 Operating Cash Flow 2,177 Cash Generated before Growth and Interest 1,450 Capex and sale of Assets Expansion (1,509) Free Cash Flow to Firm (59) 962 2,045 1,319 4Q14 3,617 1, , Q15 2,749 1, , * Excludes confirming payable (Automakers) Without growth 3,617 4Q14 Net Debt (-) 1,319 Cash generated (+) 451 Interests in the period (12.5%) ¹Recurring EBITDA excluding non-recurring expenses 2,749 4Q15 Net Debt Strong deleverage before growth impact 11% Net debt/ebitda-a from 1.8x in 4Q14 to 1.6x in 4Q15 24% Net debt/ebitda from 3.3x in 4Q14 to 2.5x in 4Q15 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 2015/12/31 (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 5, , , , , , ,881.7 Net Revenue from Services 5, , , , ,561.1 EBIT (20.8) margin 9.9% 14.0% 0.5% 10.7% 12.3% -6.1% 12.3% 12.3% 1.4x 0.3x (=) Net Operating Profit Less Taxes (NOPLAT) - A (14.5) (=) Invested Capital - B (excludes the effect of goodwill)¹ 4, , , ,289.8 ROIC - A/B 9.3% 13.6% 1.4% 8.9% 12.8% -1.6% 12.8% 12.8% Note: If consider the confirming payable (automakers) in invested capital the ROIC (A/B) would be 8.4% in JSL Consolidada, 8.7% in JSL Logística and 9.1% in Movida * 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