APRESENTAÇÃO DE RESULTADOS 2T18 INSTITUTIONAL PRESENTATION 2T18. p. 1

Transcription

1 APRESENTAÇÃO DE RESULTADOS 2T18 INSTITUTIONAL PRESENTATION 2T18 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 Business Main Pillars Purchase Operation Asset Sale Cost of Debt - Escale - Mix - Processes Maturity and Expansion - Focus on Retail (Own Stores) - Capital Structure Main pillars for ROIC achievement p. 3

4 Conquering Market Share In thousand cars RAC FLEET MANAGEMENT TOTAL % 27.3% 6.9% 59.9% % 24.2% 6.0% 59.9% ,2% % ,5% % % 31 10,3% % 7.8% 4.9% 83.3% % 7.1% 4.3% % % 11.8% 7.2% % % % % % % 16.2% 5.8% 73.3% % 14.6% 5.1% 74.1% % % % % % 25.5% 7.4% 56.5% % 74 25% Movida Localiza Unidas Others Change in ABLA s methodology of fleet counting in 2016 Source: Companies filings and ABLA (Brazilian RAC association) - As of 2016 Note: Percentage calculated over total fleet. Including franchised fleet for competitors. Segment classified as others in ABLA in 2016 considered only in total market. p. 4

5 Car Rental Market: RAC + Fleet Management Large and Growing Market in a Transformation Process, with Proven Resilience to Downturns Car Rental Market in 2017 Growing Market Resilient to Downturns Growth from 2016 to 2017: 12.0% CAGR 2013 to 2017: 7.6% The Transformation in Course Creates Opportunities in the Segment Increase in purchasing power of the new income classes (C&D) monthly salary =1 Daily rental price monthly salary =12 Daily rental price Awareness of this still latent capacity Financial elements reinforce the feasibility of the car rental R$ 14 Billion 27 million clients in 2017 Interest rate Depreciation Purchase price 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: ABLA, Fenabrave, Fenauto, IBGE and public information p. 5

6 Movida:Track-Record of Growth and Transformation Founded in São Paulo ACQUISITION 1 st 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 2 nd largest buyer of light vehicles 29 RAC Stores 2,400 Cars 2.1% Mkt share RAC 82 RAC Stores 36,875 Cars 5.8% Mkt share RAC nd Player in Brazil Premium Market 156 RAC Stores 23 Seminovos Stores 52,723 Cars 9.9% Mkt share RAC RAC Stores 59 Seminovos Stores 64,223 Cars 17.7% Mkt share RAC RAC Stores 58 Seminovos Stores 75,860 Cars 11% Market Share Movida Premium Oct RAC Stores 60 Seminovos Stores 81,295 Cars 2T18 LTM TOTAL NET REVENUES: R$93 mm R$444 mm R$1.2 bn R$1.8 bn R$2.4 bn R$2.4 bn NET REVENUES FROM SERVICES: *Information as of 2017 was adjusted accordingly to the new IFRS R$316 mm R$561 mm R$751 mm R$951 mm R$1.0 mm p. 6

7 National Presence and Solid Performance R$ million NET REVENUES EBITDA EBIT EBIT RR 1 1 AP NET INCOME Lucro 0ido RAC SERVICE CENTERS ROIC (Annualized) ROIC Anualizado SEMINOVOS STORES NET DEBT / EBITDA % 3.1x TOTAL FLEET Frota Total ,295 OBS: Data as of 2Q18 Used Cars Sales Store 1 AC 2 1 RAC Service Center AM 5 RO 8 MT MS RS PA PR GO 6 4 SC TO 5 2 DF SP MA 55 PI MG RJ BA 18 ES 2 16 CE PE 3 SE 2 AL 4 RN PB RAC Service Centers Seminovos (Used Cars) Stores % own stores *Information as of 2017 was adjusted accordingly to the new IFRS p. 7

8 Used Car Sales Market Large and Growing Market with Proven Resilience to Market Downturns # of seminovos 1 sold in , Potential addressable market % 9.3 million used cars Total Brazilian fleet Average price in R$36,009 Seminovos 1 market in 2017 R$334 billion Share Movida 40 thousand Movida 43 million with average age of 10 years Movida s target market presents growth even in periods of falling new-vehicle sales million cars +13% Installed capacity of 5 million cars % New cars Used cars Source: 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. 8

9 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 Rent a Car (RAC) (Main focus) 74.4% of service revenues 1 Higher market concentration 33.6% of total net revenues 1 Fleet Management 25.6% of service revenues % of total net revenues 1 Used Car Sales 54.8% 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 s Exclusive Offer Movida s Exclusive Offer Duster Mercedes C180 Mercedes Vito Renegade Kicks Mobi Corolla GLA Frontier Oroch Introduced on May-15 Introduced on Oct-15 Introduced on Dec-15 Introduced on Nov-16 Introduced on Oct-16 Introduced on Dec-16 Introduced on Jan-17 Introduced on Dec-17 Introduced on Jun-18 Introduced on Jun-18 Note: (1) Information from 1Q18 *Information as of 2017 was adjusted accordingly to the new IFRS accounting standards in order to preserve comparability versus 1Q18. p. 9

10 Recognized Brand with High Client Satisfaction Improving brand awareness with clients Movida s top-ofmind¹ (in %) + 23 p.p. 21% 30% 5% 8% 8% 7% Movida 1H14 2H14 1H15 2H15 1H16 1H17 Strong reputation with travel agencies 82% 1 st Recommendations by travel agencies² (in %) Localiza Unidas 14% 68% Hertz 9% Recognition from clients and the market in general Melhores Destinos Award The best Car Rental in 2018 Special SME Section of Estadão 1 st in Client Satisfaction among car rental companies - August/17 Biggest and Better Award of Exame Biggest Growth -August/17 Customer Value Leadrship Award Frost&Sullivan 2017 Source: H2R Pesquisas, Rentalcars and Rentcars 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 p. 10

11 Strategy focused in Rent a Car (RAC) B2B Financial Operation: Fleet Management Customized services as a differentiator Service Focus: RAC Unique and tailor-made services B2C Ouro Verde R$84 mm** Locamerica+Unidas R$422 mm** Localiza R$765 mm* R$276 mm* 100% 37% 63% 73% 27% 26% 74% 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 *Net revernue from services as of 2Q18 **Net revernue from services as of 1Q18 p. 11

12 Direct Sales Online Sales RAC Competitive Differentials in Services, Innovation and Tecnology Full range of value-added services... Movida Exclusive Innovative Services... With positive impacts on several devices and business areas... Facebook Messenger Bot Mobile apps in all platforms Movida Express App Mobile Web Site Tablet Loyalty Magazine Express return Use of tablets for vehicle return Carbon free rental Innovative partnerships for urban mobility development Movida Volt Recharge station for electric bicycles BI Travel Agency Stores Apple Pay... 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 Pre Payment 8% 51% 51% Online Offline 10% 78% 60% Direct Agents Full tank inclued in the rate Movida radio station Movida Monthly Flex Movidalabs Source: Euromonitor (2015) 90% 22% 40% p. 12

13 Evolução desde o IPO Net Revenue LTM Gross Profit LTM 1,678 1, ,036 1,989 2,109 1,192 1,260 2,295 2,402 2,406 2,443 1,399 1,450 1,417 1, % 26.3% 26.4% 27.0% 26.3% 26.9% 27.5% % ,041 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Net Revenue from Services Net Revenue from the Sale of Assets Gross Profit Gross Margin EBITDA and Margin¹ LTM Net Profit and Margin¹ LTM 57.7% 55.2% 54.0% 57.4% 61.0% 67.7% 70.3% 67.2% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% 37.9% 36.8% 36.0% 35.1% 34.3% 34.1% 33.7% 36.6% 38.9% 36.0% 35.2% 34.0% 33.5% 34.3% 34.6% 37.3% T16 4T16 1T17 2T17 3T17 4T17 1T18 2T % 6.5% 6.9% 7.1% 4.3% 4.8% 5.2% 5.1% Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 EBITDA ¹ Over Net Revenue of Services Margem EBITDA¹ Net Profit Net Margin¹ p. 13

14 2Q18 HIGHLIGHTS Another record in Net Income, totaling R$39.9 million ROIC of 10.7% vs. spread of 5.2 p.p. vs. cost of debt¹ Increase of 65.3% on EBITDA reaching R$118 million Record occupancy rate in RAC reaching 77.4% Expansion of 54.3% in the GTF fleet reaching 21.7 thousand cars Expansion of 11.1% in retail volume in Used Cars Sales ¹ After taxes p. 14

15 Consolidated Results In R$ million Net Revenue 1,173 1, % EBITDA and Margin¹ 40.6% 34.5% % 32.0% +65.3% % 40.0% 30.0% 20.0% % 0.0% EBIT and Margin¹ 35.6% 33.4% 26.6% 23.8% % % 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Net Income and Margin¹ 14.5% 12.3% 7.0% 5.0% % ¹ Over Net Revenue of Services p. 15

16 Rent-a-car (RAC) Total Fleet and Points of Sale (in numbers) Net Revenue (R$ million) ,765 59,571 56,765 59, % Op. cars/store Fleet - End of the Period Number of points of sales Average monthly revenue per vehicle (R$) Gross Margin (%) 1, % +8.6 p.p. 1, , , % 62.9% 66.0% 57.4% p. 16

17 Fleet Management and Outsourcing (GTF) Total Fleet (in numbers) Net Revenue (R$ million) +54.3% 21,724 21, ,078 14, % 71 Average monthly revenue per vehicle(r$) Gross Margin (%) +0.4% +1.1 p.p. 1, , , , % 67.3% 66.8% 67.9% p. 17

18 Used Cars (Seminovos) Volume of vehicles sold (in numbers) Net Revenue (R$ million) ,009 17, % % 9,471 8, Number of Cars Sold Monthly Number of Stores Average ticket (R$) Gross Margin (%) +3.4% 36,039 37,790 36,980 38, p.p. 5.1% 5.2% 4.9% 5.0% p. 18

19 EBIT In R$ million and Margin (%) EBITDA In R$ million and Margin (%) 1H18 and 2H18 EBITDA and EBIT In R$ million RAC 33.2% 38.2% 41.0% 29.2% GTF 67.7% 66.4% 76.3% 63.6% Used Cars (27) (25) (17) (11) -3.8% -3.7% -3.2% -4.8% 28.0% 33.1% 23.7% 35.5% % 55.1% 61.7% 53.3% (30) (28) (18) (12) -4.1% -4.1% -5.2% -3.7% ¹ Over Net Revenue of Services p. 19

20 CAPEX and FCFF In R$ million CAPEX 2Q17 LTM 2Q18 LTM Fleet 2,069 2,071 Renewal 1,147 1,633 Expansion Points of Sale 13 7 Others Total 2,093 2,093 Gross Revenue from the Sale of Assets 1,262 1,404 Net CAPEX Free Cash Flow to the Firm 2Q17 LTM 2Q18 LTM EBITDA Non-Cash Cost¹ 1,189 1,330 Taxes + Working Capital² 90 (181) Operating Cash Generation 1,568 1,538 Renewal Capex (1,155) (1,638) Cash Generated Before Growth 412 (100) Expansion Capex (937) (455) Free Cash Flow to the Firm (525) (555) ¹ Referring to the Cost from the sale of assets used in the provision of services ² Sum of changes in the following Balance Sheet accounts: accounts receivable, recoverable taxes, escrow deposits, other receivables, prepaid expenses, trade accounts payable, related parties, labor and tax liabilities, accounts payable and advances, legal and administrative lawsuits paid, and income tax and social contribution. p. 20

21 Cash, Indebtedness and Amortization Profile In R$ million 1, End of confirming suppliers Cash Up to June/2019 July to Dec/ going forward Local Bonds Loans and Financing Leasing Approved NPs Aug/18 Cost of debt 5.5% (after IR tax) in 2Q18 vs. annualiz. ROIC of 10.7% with record spread of 5.2 p.p Debt Ratios 2Q17 3Q17 4Q17 1Q18 2Q18 Net Debt / Net Property and Equipment Net Debt / LTM EBITDA 0.3x 0.4x 0.4x 0.4x 0.4x 2.8x 3.2x 3.3x 3.2x 3.1x Net Debt / Equity 0.6x 0.8x 0.8x 0.9x 0.8x 10.7% 9.8% 9.0% 8.5% 8.0% 7.5% 6.5% 5.7% 7.9% 5.5% 2Q17 3Q17 4Q17 1Q18 2Q18 ANNUALIZED ROIC COST OF DEBT (POST TAXES) Spread of 5.2 p.p., the HIGHEST ever recorded for the Company p. 21

22 Financial Strategy Start of a new Company profile focusing on profitability Capitalization through IPO Growth with profitability Assessment of the debt instrument alternatives Constant Ongoing Maturation of processes and Improvement in margin Evaluation of depreciation rates Maintenance of Ongoing low leverage Capital Increase Stabilization of the RAC fleet for 2018 Adjustment of the debt amortization profile Ongoing Constant p. 22

23 Opportunities and next steps RAC GTF Used Cars (Seminovos) - Urban mobility projects - Yield management - Scale gain - Market intelligence - Launch of new campaign - Organizational restructuring -Operacional efficiency - Value added services - Redesign of process p. 23

24 Cost per car RAC andgtf (ex-depreciation) Effective losses in accounts receivable, Management - Focus on Execution % Tracked Fleet 12% 22% 22% 57% 63% 63% % 5.5% 5.7% 1.3% 1.2% 1.2% 10.0% % % % % 1Q17 2Q17 1H17 1Q18 2Q18 1H18 Allowance for Doubtful Accounts % Net Revenue from Services (536.1) (474.1) (497.6) (509.5) (414.2) (463.9) (242.1) (223.0) (230.0) (246.2) (262.4) (244.8) Gross Margin Damaged Cars and Theft % 10.8% 10.6% % % 8.3% Q17 2Q17 1H17 1Q18 2Q18 1H18 Damaged Cars Sold + Stolen Cars 28.1% 26.1% 27.1% 30.2% 12.0% 7.0% 2.0% -3.0% -8.0% % Net Revenue from Services 32.8% 31.5% 1Q17 2Q17 1H17 1Q18 2Q18 1H18 1Q17 2Q17 1H17 1Q18 2Q18 1H18 Cost per car RAC Cost per car GTF p. 24

25 Management - Focus on Execution GTF Merger IR Tax Rate LTM Fiscal Economy 34.5% 34.8% 25.7% 26.2% 1Q17 2Q17 1Q18 2Q18 PIS/COFINS untimely tax credits Business RAC Income Statement Credit Amount (R$ mm) 2Q18 EBITDA Without Credit (R$ mm) 2Q18 EBITDA Mg.¹ Without Credit (%) 2T18 EBITDA Mg¹. With Credit (%) Cost and Expenses % 41.0% GTF N/A % 63.6% Used Cars Expenses 4.5 (15.3) -4.6% -3.2% TOTAL % 42.9% ¹ Over Net Revenue of Services p. 25

26 PREPARING FOR A NEW CYCLE OF GROWTH WITH PROFITABILITY MATURITY GAIN WITH FOCUS ON EXECUTION p. 26

27 p. 27