• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Localiza completa 2 q10 eng
 

Localiza completa 2 q10 eng

on

  • 422 views

 

Statistics

Views

Total Views
422
Views on SlideShare
381
Embed Views
41

Actions

Likes
0
Downloads
0
Comments
0

1 Embed 41

http://localiza.riweb.com.br 41

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Localiza completa 2 q10 eng Localiza completa 2 q10 eng Presentation Transcript

    • Localiza Rent a Car S.A. 2Q10 Results - R$ million, USGAAP Guarulhos International Airport Brach - Sao Paulo - Brazil Opened: 06/11/2010 July, 2010 1
    • Localiza started its business in 1973… …with 6 used beetles, 100% financed. 2
    • Timeline: growth by adjacencies 80,832 cars 80,832 cars 9 countries 9 countries 458 locations 458 locations 1973 1984 1990 1997 1999 2005 2006 2007 2008 2009 1Q10 2Q10 Private US$ R$ 350MM R$ 200MM R$ 300MM R$ 400MM R$ 370MM Equity 100MM IPO Debenture Follow on Debenture Debenture Debenture Debenture DLJ Bonds 1st Localiza 2nd Localiza 3rd Localiza 1st Total Fleet 4th Localiza 3
    • Ownership breakdown Founders 11.1% 8.6% 12.0% 8.6% 59.7% Salim Eugenio Antonio Flavio Claudio Resende Resende Free-Float * Mattar Mattar 100% 100% 100% * Includes 4.226.300 shares in Treasury 4
    • Company’s structure BOARD OF DIRECTORS CEO Salim Mattar Car Acquisition Legal COO Eugenio Mattar Human Administration Financial Resources IT Localiza has a very lean and efficient structure The supporting areas assist all four businesses’ divisions. The succession process is already planned. 5
    • Integrated business platform 47,727 cars 23,328 cars 2.1 million clients 614 clients 219 locations 242 employees 2,918 employees Revenue: 15.2% Revenue: 32.7% EBITDA: 39.4% EBITDA: 56.2% Synergies: Net income: 28.5% Net income: 68.6% bargaining power cost reduction cross selling 9,777 cars Capacity to sell 50,000 cars/year 168 locations in Brazil 73.4% sold to final consumer 71 locations in South America 48 stores 29 employees 650 employees Revenue: 0.5% Revenue: 51.5% EBITDA: 1.1% EBITDA: 3.3% Net income: 2.8% Net income: - This integrated business platform gives Localiza flexibility and superior performance 6
    • Strategy by division Increase market leadership maintaining high return Core Businesses Create value taking advantage of the fleet rental market, leveraging the synergies from the integrated business platform Add value to the brand by expanding the network in Brazil and South America, with profitability Support Add value to the businesses optimizing fleet renewal and reducing depreciation 7
    • Car rental financial cycle 1-year cycle Funding (PV) Net car sale revenue $26.6 $24.7 Revenue: 18.7 1 2 3 4 5 Expenses: (10.8) 8 9 10 11 12 $26.6 $29.7 Car acquisition Funding (FV) Car rental Used car sales Total Per operational car Per operational car 1 year R$ % R$ % R$ Revenues 18.7 100.0% 26.8 100.0% 45.5 Cost (8.2) -43.8% (8.2) SG&A (2.6) -13.6% (2.1) -7.9% (4.7) Net car sale revenue 24.7 92.1% 24.7 Book value of car sale (24.1) -90.0% (24.1) EBITDA 8.0 42.6% 0.6 2.1% 8.5 Depreciation (vehicle) (1.5) -5.6% (1.5) Depreciation (non-vehicle) (0.4) -2.0% (0.4) Interest on debt (1.7) -6.5% (1.7) Tax (2.3) -12.2% 0.8 3.0% (1.5) NET INCOME 5.3 28.4% (1.9) -7.0% 3.5 ROIC 17.5% 8
    • Fleet rental financial cycle Funding (PV) 2-year cycle Net car sale revenue 33.8 26.6 Revenue: 32.0 1 2 3 4 5 Expenses: (11.5) 20 21 22 23 24 33.8 42.0 Car acquisition Funding (FV) Fleet rental Used car sales Total Per operational car Per operational car 2 years R$ % R$ % R$ Revenues 32.0 100.0% 28.8 100.0% 60.8 Cost (9.7) -30.4% (9.7) SG&A (1.8) -5.5% (2.2) -7.6% (3.9) Net car sale revenue 26.6 92.4% 26.6 Book value of car sale (25.9) -90.0% (25.9) EBITDA 20.6 64.1% 0.7 2.4% 21.2 Depreciation (vehicle) (6.5) -22.6% (6.5) Depreciation (non-vehicle) (0.1) -0.2% (0.1) Interest on debt (4.6) -16.0% (4.6) Tax (6.1) -19.2% 3.1 10.8% (3.0) NET INCOME 14.3 44.8% (7.3) -25.3% 7.1 NET INCOME per year 7.2 44.8% (3.6) -25.3% 3.5 ROIC 15.2% 9
    • Growth opportunities Consolidation US market: 4 players 95% BR market: 4 players 45% 1.951 players 55% Source: Auto Rental News and Company’s estimates Infrastructure Outsourcing Pre salt – R$30bn/year until 2015 Corporate fleet : 2MM of cars Automakers R$23bn until 2013 Targeted market 500.000 cars World Cup 2014 – R$ 71bn 30% rented Olympic Games in RJ – R$ 31bn Source: Company’s estimates Source: Petrobras, Santander Equity Market Income / Consumption Air traffic 2010: 12 to 18% Credit cards: 45 mm of holders Income growth: Middle class in Brazil 2009 – 98MM Source: Gol, Tam, Abecs and Company’s estimates Strong drivers of growth 10
    • Growth opportunities: GDP Rental revenues accumulated growth rate – rentals Localiza 6.5x Sector 3.3x GDP 2005 2006 2007 2008 2009 PIB Loc a l i z a S e c t or GDP annual growth estimated for the next 5 years between 4 and 5% (Brazilian Central Bank) Source: Central Bank, Localiza and ABLA 11
    • Growth opportunities: consolidation Brazilian car rental agencies Airport locations Off-airport locations Others Unidas Hertz Hertz 49 74 73 Avis 53 Localiza 30 296 Unidas 29 Localiza Avis 91 29 Others* 1,951 Off-airport market is an opportunity to Localiza since it is still fragmented *Source: ABLA, 2009 Source: Each company website as of June 30th , 2010 12
    • Growth opportunities: consolidation Market share - Revenues Localiza 32.2% Others 57.4% Unidas 4.9% Hertz Avis 2.6% 2.9% Source: Euromonitor International 13
    • Competitive advantages Gains of Scale Higher Know-how scale Strong brand competitiveness Strong values Integrated platform Geographical footprint High corporate governance standards Used car sales network Management model Lower depreciation Stable Management Owners involved Facilities Rating Market share increase Localiza reached the virtuous circle 14
    • Competitive advantages 37 years of experience… Raising Buying Renting Selling money cars cars cars …gives Localiza know-how and superior performance in all chains of the business process 15
    • Competitive advantages in funding Raising Buying Renting Selling money cars cars cars Rating Moody’s corporate rating as of Mar/10 (Local Currency) Standard & Poors as of Mar/10 (Local Currency) Localiza Rent a Car S.A Aa2.br Localiza Rent a Car S.A brAA- Braskem S.A. Aa2.br Braskem S.A brAA+ Cyrela Brazil Realty brA+ Cyrela Brazil Realty Aa2.br CEMIG brAA CEMIG Aa2.br Duke Energy brAA- Duke Energy Aa2.br Tam brA Localiza raises money with lower spreads 16
    • Competitive advantages in buying cars Raising Buying Renting Selling money cars cars cars Localiza’ share in national sales of Purchases by brand Fiat, GM, VW and Renault* Localiza 2.3% GM FIAT 44% 33% Others VW RENAULT 1% 16% 6% Localiza purchases cars with better prices and conditions * Includes Localiza, Total Fleet and Franchisees purchases. 17
    • Competitive advantages in renting cars Raising Buying Renting Selling money cars cars cars Geographical Strong brand Scale footprint Locations in Brazil 387 275 70 102 103 Localiza Unidas Hertz Avis *Source: Each company website as of June 30th , 2010 18
    • Competitive advantages: network footprint Airport and off airport branches located in easy-access and intense traffic places 19
    • Competitive advantages in used car sales Raising Buying Renting Selling money cars cars cars Unique product Selling directly to final consumer Footprint Low mileage Pre-owned cars 48 stores Automaker warranty Cars financed through third-party financial institutions Cash generated in used car sales is used to renew the fleet Selling directly to final consumer reduces depreciation 20
    • Competitive advantages: used car sales network Around 80% of used cars are sold directly to final consumers 21
    • Competitive advantages: additional fleet Cars available for sale are used by car rental division in peaks of demand 22
    • Competitive advantages: stable management BOARD OF DIRECTORS Salim Mattar – 37y CEO Car Acquisition Legal COO Eugênio Mattar – 37y Human Administration Financial Resources IT Gina Rafael – 29y Bruno Roberto Mendes – 25y Andrade – 18y Helvia Barcelos – 23y Daltro Leite – 25y Marco Antônio Guimarães – 20y 23
    • Competitive advantages: management model Business Values Planning Execution Vision Stock Options Mission Yearly bonus Objectives Variable Mgt. Action Actions Evaluation Reward contract plan Management by results: execution with meritocracy 24
    • Results 25
    • Results: growth with profitability Net revenues consolidated .8% R : 30 1,855.7 1,856.3 CA G 1,531.7 CAGR: 16.5% 1,145.4 876.9 532.0 634.4 420.4 476.9 234.3 244.7 310.1 212.9 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 EBITDA consolidated % R: 26.3 CAG 504.1 469.7 23.9% 403.5 CAGR: 311.4 278.1 197.8 134.3 154.0 149.9 152.1 62.0 85.2 42.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 GDP 3.4 0.0 0.3 4.3 1.3 2.7 1.1 5.7 2.9 3.7 4.6 5.1 -0.2 Average 1.9 4.4 -0.2 26
    • Results: market share Fleet - consolidated Revenues - consolidated 24.8% 24.2% 21.8% 21.4% 20.6% 20.8% 22.1% 18.9% 20.5% 17.9% 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Fleet 30.4% 13.2% Source: ABLA, 2009 27
    • Corporate governance Elected twice the best company in corporate governance (Capital Aberto Magazine) Elected “the most shareholder-friendly” company (Institutional Investor Magazine - 2008) Recognitions & Rewards Best IR officer – large cap (IR Magazine Awards, July 2010) 47th most valuable brand in Brazil among listed companies (Brand Analytics, May 2010) The best in the transportation sector (Exame Magazine, July 2009) Elected twice the best CEO of a small-cap (Institutional Investor Magazine) 28
    • Financials 2Q10 29
    • 2Q10 Highlights R$ millions 2Q09 2Q10 Variation Consolidated ret revenue 416.5 575.6 Record 38.2% Net rental revenues 220.2 284.1 Record 29.0% EBITDA 109.1 150.5 Record 37.9% Net income 27.1 57.5 Record 112.2% Net income / Net rental revenues 12.3% 20.2% 7.9p.p Quantity 2Q09 2Q10 Variation Purchased cars 4,946 11,323 128.9% Sold cars 7,279 10,679 46.7% End of period fleet 52,223 71,055 36.1% Localiza is back to high levels of growth. 30
    • Car Rental Division Net revenue (R$ million) 3.8% .2 % R: 29 585.7 607.8 CAG 442.7 27.7% 372.9 % 357.2 291.9 36.1 271.3 191.6 140.8 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 # daily rentals (thousand) 1.5% % : 32.5 CAGR 7,940 8,062 26.4 % 5,793 4,668 4,857 3 1 .7 % 3,411 3,841 2,488 1,889 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 In the 2Q10 revenue grew above volume due to an increase of 3.3% in the average daily rate. 31
    • Fleet Rental Division Net revenue (R$ million) 13.2% 22.9% CAGR: 276.9 313.4 % 228.2 14.1 % 190.2 152.1 173.5 16.9 149.2 76.2 89.1 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 # daily rentals (thousand) 10.3% 24.3% CAGR: 6,437 7,099 5,144 9.3% 4,188 3,816 3,351 3,490 12.6% 1,710 1,926 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 In the 2Q10 revenue grew above volume due to an increase of 4.1% in the average daily rate. 32
    • Used car sales # of sold cars 0.7% 22.3% CAGR: 34,281 34,519 30,093 % 23,174 43.2 21,627 18,763 % 15,107 46.7 10,679 7,279 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 Sale’s volumes are still presenting strong growth. 33
    • Car Rental Division – Average age Sold cars (month) 16.6 15.3 12.3 2008 2009 2Q10 Operating fleet (month) 9.5 6.3 6.6 2008 2009 2Q10 The average age of the operating fleet returned to pre-crisis levels. 34
    • Consolidated net revenues R$ million 8.4% R: 2 CAG 1,855.7 1,856.3 1,531.7 32.1% 1,145.4 1,139.4 876.9 862.7 38.2% 575.6 Record 416.5 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 Consolidated net revenues grew 38.2% in the 2Q10. 35
    • EBITDA R$ million - 6.8 : 22.0% % CAGR 504.1 469.7 403.5 % 25.9 277.9 311.3 282.6 % 224.5 37.9 150.5 Record 109.1 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 Divisions 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 Car rental 45.3% 42.0% 44.5% 44.3% 40.3% 39.4% 42.6% 37.9% 44.5% Fleet rental 62.3% 69.1% 68.7% 67.0% 66.5% 67.1% 64.1% 68.8% 63.7% Rental consolidated 51.0% 51.2% 52.6% 51.5% 49.3% 48.9% 49.5% 48.8% 50.7% Used car sales 13.2% 4.6% 5.4% 5.5% 1.1% 1.1% 1.6% 0.8% 2.2% Localiza is still presenting consistent EBITDA margins. 36
    • Average depreciation per car R$ Car Rental - 43 .8% 2,546.0 2,577.0 1,448.5 939.1 492.3 332.9 2005 2006 2007 2008 2009 1H10 annualized Fleet Rental - 20.5 5,083.1 % 4,371.7 3,475.8 2,981.3 2,383.3 2,395.8 2005 2006 2007 2008 2009 1H10 annualized Average depreciation per car showed a strong drop when compared to the one in 2009. 37
    • Net income R$ million 190.2 138.2 127.4 3% 116.3 85. 106.2 106.5 .2 % 1 12 57.5 Record 57.3 27.1 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 Reconciliation of EBITDA x Net Income 2008 2009 Var. R$ 1H09 1H10 Var. R$ 2Q09 2Q10 Var. R$ EBITDA - Car rental and fleet rental 449.6 459.1 9.5 219.8 273.3 53.5 107.5 144.0 36.5 EBITDA - Used car sales 54.5 10.6 (43.9) 4.7 9.3 4.6 1.6 6.5 4.9 EBITDA Consolidated 504.1 469.7 (34.4) 224.5 282.6 58.1 109.1 150.5 41.4 Depreciation of revenue-earning vehicles (178.5) (172.3) 6.2 (70.0) (66.5) 3.5 (40.1) (35.8) 4.3 Other depreciation (18.3) (21.0) (2.7) (10.7) (10.2) 0.5 (5.4) (5.1) 0.3 Financial expenses, net (133.3) (112.9) 20.4 (65.5) (57.4) 8.1 (26.8) (29.2) (2.4) Income tax and social contribution (46.6) (47.2) (0.6) (21.0) (42.3) (21.3) (9.7) (22.9) (13.2) Net income 127.4 116.3 (11.1) 57.3 106.2 48.9 27.1 57.5 30.4 Record net income since IPO in 2005. 38
    • Free cash flow - FCF Free cash flow - R$ million 2005 2006 2007 2008 2009 1H10 EBITDA 277.9 311.3 403.5 504.1 469.7 282.6 Used car sales revenues (448.2) (590.3) (853.2) (983.2) (924.5) (586.9) Cost of used car sales 361.2 530.4 760.0 874.5 855.1 539.6 EBITDA without used car sales revenues and costs 190.9 251.4 310.3 395.4 400.3 235.3 (-) Income tax and social contribution – current (32.7) (42.7) (63.4) (52.8) (49.0) (31.0) Working capital variation (24.2) (4.8) 13.3 (44.8) (11.5) (12.8) Cash provided before capex 134.0 203.9 260.2 297.8 339.8 191.5 Used car sales revenues 448.2 590.3 853.2 983.2 924.5 586.9 Capex of car – renewal (496.0) (643.3) (839.0) (1,035.4) (963.1) (637.7) Change in amounts payable to car suppliers (capex) - - - - 15.2 - Net capex for renewal (47.8) (53.0) 14.2 (52.2) (23.4) (50.8) Capex - Property and equipment, net (28.0) (32.7) (23.7) (39.9) (21.0) (12.8) Free cash flow before growth 58.2 118.2 250.7 205.7 295.4 127.9 Capex of car – growth (194.0) (287.0) (221.9) (299.9) (241.1) (34.9) Change in amounts payable to car suppliers (capex) (25.5) 222.0 (51.0) (188.9) 241.1 (8.3) Free cash flow (161.3) 53.2 (22.2) (283.1) 295.4 84.7 Fleet increase (quantity) 7,342 10,346 7,957 9,930 8,642 1,182 Even with the addition of 1,182 cars, the Company still generated R$84.7 million in free cash flow in the 1H10. 39
    • Net debt reconciliation R$ million Free cash flow 84.7 Net debt Net debt 03/31/2010 06/30/2010 -1,078.6 -1,074.6 (15.0) Interest on own capital and (65.7) dividends Interest and others Net debt remained stable. 40
    • Debt – profile and costs Principal on 6/30/10 - R$ million 268.6 284.8 264.0 249.0 238.0 122.0 0.4 0.9 2010 2011 2012 2013 2014 2015 2016 2017 396.5 Cash and cash equivalents Gross debt – principal Average effective cost 2010 2011 2012 2013 2014 2015 2016 2017 Total 111.1% a 115.0% of CDI Working capital - - 58.0 78.0 55.0 75.0 190.0 - 456.0 and CDI + 1.50%pa Debenture 2nd Issuance CDI + 0.59%pa - - 66.6 66.6 66.8 - - - 200.0 Debenture 4th Issuance 114.2% of CDI - - 24.0 24.0 63.0 63.0 74.0 122.0 370.0 Debenture 1st Issuance:Total Fleet CDI + 2.02%pa - - 100.0 100.0 100.0 100.0 - - 400.0 BNDES TJLP + 3.80%pa 0.4 0.9 0.4 - - - - - 1.7 Total gross debt – principal - 0.4 0.9 249.0 268.6 284.8 238.0 264.0 122.0 1,427.7 Cash and equivalents (396.5) - - - - - - - (396.5) Total net debt – principal - (396.1) 0.9 249.0 268.6 284.8 238.0 264.0 122.0 1,031.2 Debt profile was stretched and the Company has enough cash to support its growth. 41
    • Debt – ratios R$ million 1,907.8 1,963.8 1,752.6 1,492.9 1,247.7 1,254.5 1,078.6 1,074.6 900.2 765.1 535.8 440.4 2005 2006 2007 2008 2009 1H10 Net debt Fleet value BALANCE AT THE END OF THE PERIOD 2005 2006 2007 2008 2009 1H10 Net debt / Fleet value (USGAAP) 60% 36% 51% 72% 57% 55% Net debt / EBITDA (USGAAP)* 1.9x 1.4x 1.9x 2.5x 2.3x 1.9x Net debt / EBITDA (BRGAAP)* 1.5x 1.0x 1.3x 1.8x 1.7x 1.3x Net debt / Equity (USGAAP) 1.4x 0.7x 1.3x 2.0x 1.5x 1.3x * annualized Every indebtedness ratios improved and have remained comfortable. 42
    • Managing assets Pricing strategy • Operating costs Equity • Depreciation • Financial expenses • Taxes • Spread Assets (cars) Funding Debt Cash to renew the fleet Profitability comes from rental divisions Flexible and liquid assets 43
    • Price - R$ 23 -M 0 5 10 15 20 25 ay 5- Ju 16 l -A u 28 g -S e 11 p -N o 2005 26 v -D ec 8- Fe 24 b -M a 10 r -M ay 22 -J un 3- Au 15 g -S ep 30 2006 -O c 14 t -D ec 31 -J a 16 n -M a 30 r -A p 13 r -J un 26 -J ul 6- Se p 22 -O 2007 ct RENT3 Vloume 6- D e 23 c -J a 10 n -M a 23 r -A pr RENT3 6- Ju n RENT3 X IBOVESPA 21 -J ul 1- Se p 13 -O ct 2008 25 -N o 12 v IBOVESPA -J an 25 -F eb 8- Ap 25 r -M ay 7- Ju 19 l -A ug 1- Average daily volume negotiated of R$13.3 million in 2Q10 O c 16 t 2009 -N ov 4- Ja 18 n -F eb 1- Ap 17 r -M a 29 y -J un 0 20 40 60 80 100 120 140 160 180 200 152% 447% Volume - R$ thousand Up to June 30th, 2010 RENT3 Performance 44
    • Thank you! Disclaimer The material presented is a presentation of general background information about LOCALIZA as of the date of the presentation. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. This presentation is strictly confidential and may not be disclosed to any other person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein. This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of LOCALIZA and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. Although LOCALIZA believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to LOCALIZA’s management, LOCALIZA cannot guarantee future results or events. LOCALIZA expressly disclaims a duty to update any of the forward-looking statement. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act of 1933. Any offering of securities to be made in the United States will be made by means of an offering memorandum that may be obtained from the underwriters. Such offering memorandum will contain, or incorporate by reference, detailed information about LOCALIZA and its business and financial results, as well as its financial statements. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. 45