Merger Presentation 90, 90, 90

Transcription

1 228, 132, , 134, , 234, , 221, 34 Merger Presentation 90, 90, 90 1, 64, , 31, 29 December 2017

2 UNIDAS TRACK-RECORD Foundation SAG and Growth Restructuring Period Period Consolidation Period Enterprise and Growth Consolidation Unidas was founded in 1985 through the merger of 5 car rental companies and the entry of 2 investors In 2001, SAG Group acquired Unidas In 2004, the first store for Used Vehicle Sales was opened In 2005, the franchise business model ( Franquia Chave na Mão ) was launched Total fleet CAGR : 12.5% p.a. Restructuring process with focus on growth, profitability and service quality R$300 mm investment by Vinci, Gávea and Kinea, 3 well-known Brazilian private equity firms Cost of debt Reduction Acquisition of Best Fleet, fleet management company focused on the premium segment Strategic partnerships with Enterprise (largest car rental company in the world by revenue and fleet) and TAM (largest airline operating in Brazil) Enterprise, world s number one car rental company by revenue and fleet, acquired a 20% stake in Unidas 1

3 Unidas delivered significant growth in recent periods, while maintaining a strong capital structure and improving its return Strong Growth Solid Capital Structure Growing ROIC Number of Cars (000') Fleet Value (R$ million) 1.926,3 Debt + Automakers / Total Fleet Net Debt / EBITDA 2,6 x 1 EBIT LTM ROIC 2 8,6% 8,4% 2,4 x 1.197, ,2 2,0 x 2,1 x 7,5% 1.071,0 7,2% 56,1 40,3 42,0 46,1 69,6% 71,0% 75,3% 78,9% 147,7 173,8 203, Q14 3Q15 3Q16 3Q17 3Q14 3Q15 3Q16 3Q17 3Q14 3Q15 3Q16 3Q17 Notes: 1 Reported EBIT 2 ROIC calculated as (Reported EBIT * (1-Tax)) / (Shareholders Equity + Net Debt) 2

4 TRANSACTION STRUCTURE Step 1: Acquisition of 40.3% for R$398.6 mm and exchange of shares with "Merger Shareholders", resulting in a total valuation of Unidas of R$988.5 mm. Cash Merger Share in Unidas 40.3% 59.7% Payment Method R$ million 34,475 thousand shares Valuation R$ million R$ million ¹ (=) Total Equity Value R$ million (+) Net Debt (3Q17) R$ 1,021.8 million (=) Total Enterprise Value R$ 2,010.3 million Note: 1 Considers closing price as of 27/Dec/2017 (R$ / LCAM3) Step 2: Merger of shares with Unidas. Remaining controlling shareholders of Unidas join Locamerica s controlling block. Locamerica s Controlling Shareholders Unidas Controlling Shareholders Free-Float 39.2% 25.2% 35.6% New Controlling Block 100,0% 3

5 FINANCIAL HIGHLIGHTS Combined A B A + B Leverage (C) A + B + C (+) Market Cap (R$ million) R$ 1,383.1 R$ R$ 2,371.9 (R$ 398.6) R$ 1,973.0 (+) Net Debt (R$ million) R$ R$ 1,021.8 R$ 1,983.3 R$ R$ 2,381.9 (=) Enterprise Value (R$ million) R$ 2,344.6 R$ 2,010.3 R$ 4,354.9 R$ 4,354.9 Total Fleet 3Q Recurring EBIT 3Q17 (Annualized) R$ R$ R$ R$ Recurring EBITDA 3Q17 (Annualized) R$ R$ R$ R$ Recurring Net Income 3Q17 (Annualized) R$ 80.4 R$ 72.1 R$ (R$18.4) ² R$ Net Debt / EBITDA 3Q17 (Annualized) 2.2 x 2.4 x 2.3 x % Discount 2.8 x EV / Car x 43.2 (31.8%) 43.2 EV / EBIT 8.8 x 7.5 x 8.1 x (14.6%) 8.1 x EV / EBITDA 5.5 x 4.6 x 5.1 x (15.2%) 5.1 x Price / Earnings 17.2 x 13.7 x 15.6 x (20.3%) 14.7 x 1 Considers closing price as of 27/Dec/2017 (R$ / LCAM3). (Source: Bloomberg) 2 Considers CDI cost (7.0%) and considers 34% of effective tax rate (IR/CS). Pre-Synergies 4

6 FINANCIAL HIGHLIGHTS (3Q17 LTM) USED CARS NETWORK OVERVIEW UNIDAS LOCAMERICA Total fleet of 56.1 thousand cars Broad geographical coverage RAC platform ready for growth International connection with Enterprise Total fleet of 44.6 thousand cars High potential for cost dilution Unique capital structure Innovation and growth track-record Sophisticated and results-oriented management Unique corporate governance 49 stores in the all regions of the country 23 stores in the South and Southeast regions MG PR SP RJ ES RS SC Gross Revenues Gross Revenues 20.1% 50.3% 29.7% RaC + Franchise Revenues Fleet Management Revenues Used Cars Sales 47,4% 52,6% Fleet Management Revenues Used Cars Sales R$ 1,607.4 million R$ million 5

7 SCALE AND LEADERSHIP Fleet Market-Share (2016)¹ Total Fleet (000 Cars 3Q17) Positioning towards Automakers 19,6% Localiza LCAM + UNIDAS 185,4 Leading Companies Second Tier 53,3% 9,7% 14,2% Movida Ouro Verde Outros 100,8 74,1 3,2% 21,0 20,0 19,2 19, Net Revenues (R$ million) EBITDA (R$ million) LCAM UNIDAS LCAM UNIDAS 1, , ,6 827,0 2, , , , , ,7 751,1 905, , , ,0 332,7 285, ,5 266,8 313,1 352,8 373, ,0 304, M M17 Notes: 1 Latest market data available 2 Estimated data 6

8 SCALE AND LEADERSHIP PURCHASED VEHICLES (000 Units) SOLD VEHICLES (000 Units) 43,5 22,9 37,3 19,2 41,2 41,6 26,7 26,0 33,2 16,7 37,9 37,5 20,1 19,2 34,2 20,6 20,6 18,1 14,5 15,6 16,6 17,8 18,3 13, M M17 VEHICLES CAPEX (R$ million) USED CARS SALES (R$ million) 1.471,9 765, ,3 667, , , , ,4 776,7 419,6 949,0 521, , ,5 595,2 638,5 706,3 680,5 516,5 630,6 357,1 427,1 494,2 421, M M17 Locamerica 7 Unidas

9 Combination of the best of each company, creating value to all shareholders Alignment of the controlling block shareholders with a longterm project 2 nd largest company in Brazil: +100,000 cars, +210 RaC stores, +70 used cars stores and presence in all states Consolidation of its leadership in the fleet management segment 1º Creation of a complete platform offering all the services available in the market International connection with the world's largest transport solutions group Combination of 2 complementary and specialized teams, added to Locamerica's management model 8

10 TRANSACTION RATIONALE LOWER COST OF CAPITAL DIFFERENTIATED SCALE Privileged access to capital markets through equity or debt Size and synergies of the combined company shall contribute to the strengthening of the financial profile Combined company will be the 2 nd largest vehicle acquirer of the country Bigger discounts and better purchase conditions Combined fleet of over +100 thousand cars A+ A+ AA- AA- GROWTH STRATEGY OPERATIONAL SYNERGIES Rent a Car: Growth and maturation of the existing platform Synergies with SG&A optimization Fleet Management: Strong cash generation to support growth and explore cross-selling opportunities within client base. Complementarity between a fleet focused company and a RaC focused company, with low store and customer overlap Used Cars: Reduction of inventory turnover and increase of productivity per store Optimization of used cars sales channel, improving logistics 9

11 FINANCIAL PROFILE Amortization Schedule (September/2017) A B A+B COMBINED Leverage + New Debt (C) A+B+C (+) Short Term 207,8 473,0 680,8 680,8 (+) Long Term 1.053, , , ,6 (=) Total Debt 1.261, , , ,4 (-) Cash (299,5) (557,6) (857,1) 398,6 (458,5) (=) Net Debt 961, , , , LOCAMERICA 3Q17 UNIDAS 3Q17 ISSUANCES MADE BY LOCAMERICA ON 4Q Shareholders Equity 461,6 803, ,4 (398,6) 866, (+) Vehicles Avaliable for Sale 72,5 199,9 272,4 272,4 (+) Vehicles in Use 1.473, , , ,0 (=) Total Fleet Value 1.546, , , ,4 Financial Result 3Q17 (Annualized) (156,7) (159,0) (315,7) (18,4) (334,1) Recurring 3Q17 EBITDA (Annualized) 428,8 433,4 862,2 862, Net Debt / EBITDA 2,2 x 2,4 x 2,3 x 2,8 x Net Debt / Fleet Value 62,2% 53,0% 57,1% 68,6% Net Debt / Shareholders Equity 208,3% 127,1% 156,7% 274,8% EBIT / Financial Result 273,6% 272,6% 273,1% 258,0% Cash

12 THANK YOU 11

13 RECURRING 3Q17 ANNUALIZED (+) Rental revenues ,530.4 (+) Used cars sales ,491.6 (-) Sales taxes (63.0) (75.1) (138.1) (=) Net revenues 1, , ,883.9 (-) Rental Costs, Cash (185.6) (263.9) (449.5) (-) Cost of Vehicle Sale (513.8) (803.3) (1,317.1) (=) Gross Profit, Cash ,117.3 (-) Sales Expenses (47.4) (72.5) (119.9) (-) General and Administrative Expenses (44.5) (90.6) (135.1) (-) Other Operational Revenues (Expenses) (0.0) (0.1) (0.1) (=) EBITDA (-) Vehicle Depreciation (154.1) (152.1) (306.3) (-) PP&E Depreciation (7.0) (12.6) (19.6) (=) EBIT (-) Financial Result (156.7) (159.0) (315.7) (-) Income Taxes (30.6) (37.6) (68.2) (=) Net Income Note: 1 Numbers adjusted to non-recurring expenses (i) Locamerica: R$7.4 million of pre-payment of debt and MtM of hedge instruments; and (ii) Unidas: R$ 1.6 million of IPO expenses. 12