CAR Inc Annual Results. March 2016

Transcription

1 CAR Inc Annual Results March 2016

2 2015 major achievements 1 Dominant market leadership 91,179 total fleet (1) 5x EBITDA compare to #2 (2) 2 Robust growth 53% rental revenue growth 68% adj. net profit growth (3) 3 Strong and sustainable profitability 62.8% adj. EBITDA margin (4) 21.5% adj. net profit margin (4) 4 Solid financial position BB+ credit rating (5) 2.3x net debt/adj. EBITDA (6) 5 Expansion along the auto value chain collaboration initiative Notes: (1) As of Dec. 31, 2015 (2) 9M 15 adjusted EBITDA for both CAR and #2 player, based on public filings (3) Adjusted net profit is defined as profit excluding share-based compensation, fair value gain on preference shares, unrealized foreign exchange loss related to USD denominated liabilities (4) Margins calculated as percentage of rental revenue; Adjusted EBITDA is defined as profit before income taxes, net finance income/costs, depreciation, amortization and impairment, excluding share-based compensation, fair value gain on preference shares, unrealized foreign exchange loss related to USD denominated liabilities (5) Credit rating of Ba1 by Moody s, BB+ by S&P, and BB+ by Fitch (6) Includes restricted cash of RMB53 million and senior notes of RMB5,191 million as of Dec. 31, 2015 in net debt calculation 1

3 1. Financial and Operational Highlights

4 2015 results summary (RMB in millions, unless otherwise noted) YoY Rental revenue 4,399 2,866 53% Total revenue 5,003 3,520 42% Gross profit 2,091 1,239 69% Margin (1) 47.5% 43.2% 4.3 pp Net profit (2) 1, % Adj. EBITDA (3) 2,764 1,629 70% Margin (1) 62.8% 56.8% 6.0 pp Adj. net profit (4) % Margin (1) 21.5% 19.6% 1.9 pp Basic EPS (RMB) % Dec-15 Dec-14 YoY Total assets 16,342 9,842 66% Total debt (5) 8,514 3, % Cash (5) 2,041 2,476 (18%) Total debt (5)(6) / Adj. EBITDA 3.1x 2.2x 0.9x Net debt (5)(6) / Adj. EBITDA 2.3x 0.7x 1.6x Notes: (1) As a percentage of rental revenue (2) Includes a fair value gain for the Company s ordinary shares investment in UCAR and an unrealized foreign exchange loss on USD-dominated liabilities as of Dec. 31, 2015 (3) Adjusted EBITDA is defined as profit before income taxes, net finance income/costs, depreciation, amortization and impairment, excluding share-based compensation, fair value gain on preference shares, foreign exchange loss related to corporate reorganization, IPO-related expenses, and unrealized foreign exchange loss related to USD denominated liabilities (4) Adjusted net profit is defined as profit excluding share-based compensation, fair value gain on preference shares, foreign exchange loss related to corporate reorganization, IPO-related expenses, and unrealized foreign exchange loss related to USD denominated liabilities (5) Includes senior notes of RMB5,191 million as of Dec. 31, 2015 (6) Includes restricted cash of RMB53 million and RMB53 million, respectively for 2014 and 2015 and available-for-sale investments of RMB1,070 million for 2014 in cash and net debt calculation 3

5 Strong business growth Rental revenue Fleet size (RMB in millions) 4, YoY growth rate 54% 53% 91,179 1,174 6,837 4,157 1, ,209 2, ,714 2, ,296 1,201 3, % 35% 53,022 5,259 5,267 37,124 2, ,241 5,201 31,453 33,986 63,522 1,252 3,497 5,569 9,368 43,836 22,252 56, Short-term rental Long-term rental Leasing and others Short-term rental Long-term rental Leasing and others Retired and awaiting for sale Held for sale 4

6 Solid short-term rental performance (RMB in millions) Avg. daily rental fleet (1) ST rental revenue 2,296 3,103 = days in year x x 37,755 50,869 RevPAC (2) = ADRR (3) x Utilization (4) 62.2% 63.0% YoY 35% 35% stable stable +0.8pp RevPAC (2) Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 ADRR (3) Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Utilization (4) 60.5% 61.8% 57.4% 60.9% 62.6% 63.7% 61.7% 63.7% 64.1% 64.5% 52.5% 60.1% 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 35% growth with solid RevPAC and increasing Utilization Self-drive demand growth partially offset by the fast emerging supply of ride sharing Notes: (1) Average daily short-term rental fleet is calculated by dividing the aggregate days of short-term rental vehicles in operation in a given period by the aggregate days of that period (2) RevPAC refers to average daily rental revenue per short-term rental vehicle, which is calculated by multiplying the average daily rental rate in a given period by the fleet utilization rate in that same period (3) Average daily rental rate is calculated by dividing short-term rental revenue in a given period by the fleet rental days in that period. Fleet rental days are the total rental days for all vehicles in short-term rental fleet in a given period (4) Fleet utilization rate is calculated by dividing the aggregate days that vehicles are rented out for short term rentals by the aggregate days that short-term rental vehicles are in operation 5

7 Our collaboration and investments with UCAR Considerable and rigorous financial contributions 31,000+ Key milestones JAN 2015: Signed 5-yr strategic collaboration ST rental fleet (Daily sharing) LT rental fleet 16,136 18,916 19,883 9,031 1Q'15 2Q'15 3Q'15 4Q'15 JUL 2015: Invested USD125 MM in UCAR series A, post-money valuation at USD1.25 B SEP 2015: Participated series B with USD50 MM, post-money valuation at USD 3.55 B DEC 2015: UCAR corporate restructuring to transfer its business to onshore shareholding 9.35% current stake in UCAR Over 10,000 vehicles under short-term rental terms used for daily sharing RMB1,633 MM revenue from UCAR fleet RMB797 MM fair value gain of the investment Rigorous corporate governance implemented around related party transactions Benefits to CAR Committed long-term financial returns Enhancement in fleet management efficiency Additional license plates resource Massive strategic value 6

8 Rental demand growth partially offset by ride sharing Primarily different user scenario Car rental: Typical transaction > 150km per day Pressure on short-distance rental growth (1) Growth rate (YoY, 2H 2015) ~540 ~ Length of rental (day) Distance driven (km) Rental days breakdown by distance driven per day (km) Ride sharing: Mostly replacement for taxi and car ownership Short-distance rentals percentage (2H 2015) ~13% ~26% ~13% ~24% Taxi upgrading Government vehicle reform Car ownership replacement <50 km per day km per day >100 km per day Ride sharing brought additional convenience and competitive pricing due to heavy subsidies Notes: (1) For illustrative purposes only and does not represent actual growth rate 7

9 Sustainable profitability profile Profit margins Gross margin (1) 41% 43% 44% 46% 50% 49% 50% 43% 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Adj. EBITDA margin (1)(2) 62% 64% 64% 57% 58% 57% 61% 55% Cost structure Major cost items as % of rental revenue (4) Interest SG&A Depreciation 79% 76% 77% 78% 11% 7% 10% 10% 73% 73% 74% 11% 12% 12% 11% 10% 11% 14% 10% 10% 12% 24% 24% 23% 21% 20% 21% 21% 82% 12% 13% 24% 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Adj. net profit margin (1)(3) 20% 21% 19% 19% 23% 24% 23% 16% DOE 32% 34% 33% 35% 31% 30% 30% 33% 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Notes: (1) As percentage of rental revenue (2) Adjusted EBITDA is defined as profit before income taxes, net finance income/costs, depreciation, amortization and impairment, excluding share-based compensation, fair value gain on preference shares, foreign exchange loss related to corporate reorganization, IPO-related expenses, and unrealized foreign exchange loss related to USD denominated liabilities (3) Adjusted net profit is defined as profit excluding share-based compensation, fair value gain on preference shares, foreign exchange loss related to corporate reorganization, IPO-related expenses, and unrealized foreign exchange loss related to USD denominated liabilities (4) Expenses figures have been adjusted for share-based compensation, reorganization related expenses as well as costs related to suspended fleet. Interest expenses are net of interest income 8

10 Used car disposal Proven capabilities in used car disposal Proven residual risk management Sales of used vehicles (RMB in millions) Cost of sales of used vehicles As % of sales of used vehicles % 105.5% 101.1% % 95.1% Avg. selling price (RMB 000) # of used vehicles disposed 9,986 15,483 5,298 9,284 (1) 2015 highlights Extended the holding period for certain vehicle models by continuing operation in UCAR fleet , # of used vehicles sold # of used vehicles disposed to franchisees through leasing Extended the holding period of core models to mostly 3 years to reduce residual risk exposures Launch used car B2C pilot program to optimize disposal channels (carry 6,837 retired vehicles awaiting for sale at yr-end mainly for the pilot) Solid track record of mitigating residual risks and estimating residual values Note: (1) Among which 1,561 used vehicles were sold to franchisees through one-year installment payments 9

11 Used car B2C initiative Pilot program updates 14 pilot stores opened in T3 cities In Dec 2015, avg. ~30 vehicles sold per store 2015 operating cost: ~RMB15 MM Avg. monthly operating cost per store: ~RMB300,000 Chifeng City Inner Mongolia Province Anshan City Liangning Province Datong City Shanxi Province Linfen City Shanxi Province Zibo City Shandong Province Nanchong City Sichuan Province Yichang City Hubei Province Liuzhou City Guangxi Province Jining City, Shandong Province Bengbu City, Anhui Province Xinyang City, Henan Province Xiangyang City,Hubei Province Anqing City, Anhui Province Quanzhou City Fujian Province Enable us to realize higher residual values, better manage full life cycle of vehicles, and capture the vast growth potential in China s used car market 10

12 Strong financial positions Strong balance sheet (RMB in millions) Debt (1) / Assets 72% 62% 37% 52% Diversified funding structure Debt structure % 3% 3% 3% 7% 16,342 9,842 Total assets 5,058 6, Cash (2) ,476 2,041 93% Clean Secured Gurranteed by Legend Secured by rental vehicles and Gurranteed by Legend Maturity profile 23% % 2% 12% 90% Rental vehicles asset 3,541 4,024 5,234 9,339 71% 61% 25% Total debt (1) 3,624 3,811 3,611 8,514 <1 year (Short-term debt) 1-3 years >3 years <1 year (Long-term debt) We pay close attention to asset and liability management, monitoring FX exposures and analyzing market conditions Continue to assess Hedging or Liability Management options Notes: (1) 2012 debt amounts include amounts due to Legend Holdings; 2015 debt amounts include senior notes of RMB5,191 million as of Dec. 31, 2015 (2) Includes restricted cash of RMB9 million, RMB2 million, RMB53 million and RMB53 million and available-for-sale investments of nil, nil, RMB1,070 million and nil, respectively for

13 2. Business Strategies

14 Revolutionary changes in auto related industry 电动车 EV 汽车技术革命 Auto Technology 智能汽车 Smart Vehicle 自动驾驶 Autonomous Driving 车联网 Connected Vehicle 互联网技术革命 Internet Technology 云计算 Cloud Computing 大数据 Big Data 机器学习 Machine Learning 消费习惯变化 Consumer behaviors change 汽车生态圈重塑 Auto ecosystem revolution On-demand economy Manufacturing SHARE Car ownership Car sharing Distribution Mobility sharing Repair & maintenance Financing & insurance 13

15 We are strategically positioned for long-term success C2C platform 以 B2C 模式为切入点, 最大化产业协同效应, 构建基于新一代技术革命的 汽车共享和大数据平台, 重塑汽车生态圈 Revolute auto ecosystem: Maximize business synergies with focus on B2C model; Build auto mobility and big data platforms driven by new technology revolutions 14