LOCAMERICA Investors Institutional Presentation

Transcription

1 228, 132, , 134, , 234, , 221, 34 LOCAMERICA Investors Institutional Presentation 90, 90, 90 1, 64, , 31, 29

2 History of Entrepreneurship and Growth / ,500 13,796 29,252 27,731 44,644 Foundation in Belo Horizonte Beginning of national expansion with small rental companies acquisition Private Equity Bigger financial discipline IPO New growth phase focusing on profitability Conclusion of restructuring project Merger with Ricci and acquisition of Panda and Meridional 1985/ / / / ,000 Merger with Unidas and conclusion of expansion project. 1 36,000 34,600 45,298 52,194 Foundation through the merger of 5 car rental companies and the entry of 2 investors Note: 1 CADE approval in the order of January 22th, In 2001, SAG Group acquired Unidas Private Equity Restructuring process and capital injection Acquisition of Best Fleet and Strategic Partnership with Enterprise Enterprise, world s number one car rental, becomes Unidas shareholder 2

3 Brazilian Market l Car Rental Great power of competitivity Brazilian Population Affordability Brazil Population (207.7 million) Brazil Employed Persons (95.4 million) Age>20 years and working-classes A+B+C (84.0 million) Number of Brazil credit card holders (64.0 million) Number of Registered Customers Unidas Brand (2.1 million) Evolution of market in number of cars¹ 265, % 297, Foreign Tourists in 2017 (7 million) Source: IBGE, IPEADATA, Brazilian Central Bank and World Bank Source: ¹ABLA Brazilian Vehicle Rental Sector Yearbook (regarding 2017 Car Rental Industry performance). 3

4 Brazilian Market l Fleet Management 8.9% 10.0% 13.3% Low penetration of market 15.8% 16.5% 24.5% Scale and Leadership 37.4% 46.9% 58.3% Total Fleet (Car Rental and Fleet Management) by player (4Q17) (Thousand cars) Positioning before automakers Leadership companies Others Market-share Fleet Management¹ % 11.3% Locamerica + Unidas Localiza % 4.6% Movida Others 2 Source: ¹ABLA Brazilian Vehicle Rental Sector Yearbook (regarding 2017 Car Rental Industry performance). 2 Estimated data. 4

5 International Market l Economic Fundamentals and Concentration Growth (%)¹ GDP 1.5% 2.3% % Car Rental Industry Growth and Number of Cars (thousand)²³ (5.5)% 2, , % -3.5% USA Brazil Brazilian Rental Industry Concentration Number of Cars (thousand, regarding Car Rental and Fleet Management)² USA Brazil American Car Rental Industry Concentration Number of Cars (thousand)³ % 382 thousand 93.1% 2,035 thousand 46.2% 327 thousand Top 3 Others 6.9% 152 thousand Top 3 Others 709 thousand 2.2 million Source: 1 USA and Brazil GDP: World Bank and IBGE. 2 ABLA data. 3 Portal Auto Rental News data 5

6 Brazilian Market l Used Cars x 5.0x 4.0x 3.0x 2.0x 1.0x 0.0x -1.0x -2.0x -3.0x % 0.40% 0.30% 0.20% 0.10% 0.00% -0.10% Sales of New Cars Sales of Used Cars 1 2.6x 3.1x x 4.9x 4.9x 4.5x 4.0x % 0.28% 0.33% 0.32% 0.41% % 0.40% Q16 4Q17 Number of Sold Cars (million) Used Cars Sales/New Cars Sales Sale of used cars 4Q16 4Q17 Number of Sold Used Cars Sales Locamerica + Unidas/Sold Used Cars in Brazil Depreciation of vehicles in Brazil² By Age (million)¹ % 30.4% % % % More than 13 years Between 4 and 8 years Between 9 and 12 years Until 3 years Source: FENAUTO and FENABRAVE. ¹ Regarding only cars and light commercials. ² Depreciation over New Car price in each period. dez-08 Dec-08 Mar-10 mar-10 Jun-11 jun-11 Sep-12 set-12 Dec-13 dez-13 Mar-15 mar-15 Jun-16 jun-16 Price of Used Car (Base 100 in Dec/2008) Price of New Car (Base 100 in Dec/2008) 6

7 MERGER PROJECT 7

8 Merger with Unidas Union of the best of each company to create value for shareholders Alignment of block shareholders with a long-term project 2nd biggest location company in Brazil: +100,000 cars, +216 RAC stores, +76 used cars stores and presence all over the country Consolidation of leadership in the segment of fleet with than 72,570 cars 1º Creation of a complete platform, offering all available services in the national and international Market, allowing cross-selling International connection with the major group in transport solutions of the world, with 63 years of experience, presence in 96 countries, 1.4 million of vehicles in RaC segment and 500 thousand in Fleet segment, 100 Thousand employees Union of 2 complementary and specialized teams, creating strong synergies 8

9 Merger with Unidas Dec/2017 (45 days) (130 days) (360 days) 2019 Investment Agreement Signature CADE approval before the estimated deadline Planning Execution INTEGRATION PROJECT LCAM-UNIDAS NewCo WORKING COMMITTEE STRUCTURE/MANAGEMENT Evaluate the impact of changing process and structure BRAND Evaluate the impact of changing the brand TECHNOLOGY Evaluate the impact of changing the systems LCAM+RICCI INFORMATION INPUT INTEGRATION PLANNING LCAM+RICCI WAR ROOM WORKING PLAN Identify the best of two companies to create a new company HUMAN RESOURCES Executive assessment and integration PLAN EXECUTION MONITORING AND CONTROL POTENTIAL SYNERGIES $ Debt Refinancing Purchase of vehicles Organization chart definition Customers and suppliers attendance Vehicles Sales 9

10 THE NEW COMPANY 10

11 Financial Data Net Revenue EBITDA (R$ million) 2, ,994.8 (R$ million) , , , , , , , , Recurring EBIT 4Q17 Annualized Recurring Net Income 4Q17 Annualized (R$ million) (R$ million) Recurring Q17 Annualized Locamerica Recurring Unidas Recurring indicators: regarding Ricci s financial results from Jan/17 to Dec/17. 4Q17 was only annualized to disclose the size of the New Combined Company, do not consider this information as guidance to projections Q17 Annualized 11

12 Financial Data Annualized ROE - Locamerica Annualized ROIC - Locamerica 5.3% p.p 8.1% 5.8% +9.9 p.p 9.1% 19.0% +4.2 p.p 8.9% 10.7% 10.3% +0.8 p.p 12.3% 13.1% 12

13 3, , , , , x 2.0x 1.0x 0.0x -1.0x -2.0x -3.0x Indebtedness (R$ million) 91.0% Debt Composition 3.7% 2.3x 2.2x 2.0x 2.0x 1, , , , x 2,307.2 Net Debt 2.7% 1.6% 1.0% EBITDA Debentures and Commercial Papers Leasing Working capital FINAME SWAP Net Debt / Recurring EBITDA S&P bra- Jun-12 Fitch BBB+ Jun-10 1, Debt Maturity Profile Total amortization regarding 3 next years of R$1, , Cash Debt in Dec/17 A-(bra) May-12 Debt raised after Dec/17 Rating Evolution bra Feb-13 Upgrade Upgrade A(bra) Apr-13 bra+ Feb-17 AA-(bra) Jun-17 (R$ million) New Rating braa- Feb-18 New Rating AA(bra) Mar-18 The Debt Maturity Profile graphic is considering the debt totaled on 12/31/2017 and the Debt Issuances already approved by the Board of Director s that will be concluded in 1Q18 (Subsequent Event) The ratio Net Debt to Recurring EBITDA is not considering the payment of R$398 million to pay to Private Equity Funds, resulted by the merger with Unidas 13

14 Operating Data Total Fleet Total Fleet (by segment) # Cars # Cars 111, , % 10,579 7,472 4, % 34, % % 28,265 30,424 31,184 27,731 3,505 3,735 2,796 1,529 2,636 3,505 5,070 2,394 93,364 28,265 30,424 31,184 27,731 72,570 22,124 23,184 23,318 23,808 28,265 30,424 31,184 27,731 Operating Deployment Demobilized Locamerica + Unidas Locamerica + Unidas Fleet Management Car Rental Car Rental - Franchises 14

15 Operating Data Number of Stores Car Rental Number of Stores Car Sales % % Own Stores Franchises Stores Locamerica + Unidas Retail - Own Stores Retail - Franchises Wholesale 15

16 Fleet Management 25,000 20,000 15,000 10,000 5,000 - # of Daily Rentals and Average Monthly Tariff 1,407 1,502 1,609 1,597 1,546 1, % 18,084 7,599 8,232 8,057 8,335 11, Locamerica + Unidas Nº of Daily Rentals Average Tariff Annualized Depreciation / car The highest depreciation in the industry! (R$ thousand) Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Locamerica Unidas 2,000 1,500 1, ,000 22% # of Customers and Segmentation by Sector 4Q17 15% % 1,919 1, Locamerica Unidas 7% 1% 1% 9% 2% 1% 1% 2% 8% 9% 3% 2% 2% 2% 2% 2% 1% 4% 5% 1º Trade/Services 2º Telecom/TI 3º Food/Beverages 4º Engineering/Construction 5º Industry 6º Machines/Equipment 7º Logistics/Transportation 8º Agribusiness/Agricultural 9º Chemical/Pharmaceutical 10º Government 11º Education/Health 12º Security 13º Energy/Water Supply 14º Consumer Goods 15º Metallurgy/Steel 16º Bank/Insurer /Financial Services 17º Health/Pharmaceutical 18º Oil/Gas 19º Sanitation 20º Advertising/Communications Others 16

17 Car Rental Utilization Rate and Daily Rentals Customers registered in the base % % 2, % 74.8% 3,509 3, % 83.7% 4,797 6, % 80 % 75 % 70 % 65 % 60 % 55 % 50 % 45 % 2,145,329 - Daily Rentals (thousand) Utilization Rate 40 % (R$) Average Daily Rate Annualized Depreciation / car The highest depreciation in the industry! (R$ thousand) Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Car rental (disregarding Franchises) 1Q16 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Car Rental + Franchises 17

18 Used Cars Number of Cars Sold % (R$ million) Gross Profit and Margin (%) -4.4% -0.6% 2.1% 6.7% 12.4% 11.0% % % 70. 0% 60. 0% 50. 0% 40. 0% 30. 0% 20. 0% 10. 0% 0.0% Locamerica Unidas (# thousand) Sales by Wholesale and Retail 11.4% 21.6% 24.2% 38.7% % Retail Wholesale 60.9% 61.1% Locamerica + Unidas % of Retail over Total 80. 0% 70. 0% 60. 0% 50. 0% 40. 0% 30. 0% 20. 0% 10. 0% 0.0% Locamerica Unidas Gross Margin Sales by Wholesale and Retail (Gross Revenue R$ million) 15.1% 29.4% 33.1% 49.0% 64.0% 65.6% % 1, Retail Wholesale Locamerica + Unidas % of Retail over Total 18

19 New Corporate Structure Luis Fernando Porto Sergio Guerra RCC Principal Enterprise 13.09% 13.09% 12.51% 14.05% 10.76% 36.5% Free Float New Block of Control 100.0% Price Evolution LCAM x Ibovespa (12/28/16 to 12/29/2017) Variation % Locamerica % Ibovespa +26.9% (12/28/17 to 03/20/2018) Variation % Locamerica +62.0% Ibovespa +10.2% LCAM3 19 IBOV Source: Price adjusted for dividends - Broadcast

20 Expressive growth in liquidity with results delivered Price Adjusted for dividends Merger with Initiation of Initiation of Base 100 Merger with Ricci Announcement Results 1Q17 Results 2Q17 Results 3Q17 Unidas Announcement Coverage Bradesco BBI Coverage Itaú/Santander Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 LCAM3 IBOV Daily Traded Volume (R$) , ,0 Merger Announcement* ADTV R$ 661 thousand ADTV R$ 2.3 million ,0 0,0 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 LCAM3 * Not considering the block trade volume in January, 5th, 2018 Source - Broadcast 20

21 Analyst s coverage Institution Target Price Recommendation Analyst Data Santander R$ Buy Pedro Bruno 15/mar Updated Safra R$ Buy Lucas Marquiori 26/feb Updated Itaú BBA R$ Buy Renata Faber 25/feb Updated BTG Pactual R$ Buy Renato Mimica 19/feb Updated Banco do Brasil R$ Buy Renato Hallgren 08/feb Updated Bradesco R$ Buy Victor Mizusaki 23/jan Updated Net Income (Projected) P/E Institution Santander x 14.1 x Safra x 11.9 x * Itaú BBA x 15.4 x BTG Pactual x 9.9 x Banco do Brasil x 8.9 x Bradesco x 7.9 x * Considers only Locamerica stand-alone projections. 21

22 Thank You! ri.locamerica.com.br / ri@unidas.com.br