Webcast 4 q12 eng
0 likes235 views
Localiza Rent a Car reported financial results for the fourth quarter and full year of 2012. Net revenues for the car rental division increased 8.1% in 4Q12 compared to 4Q11, while net revenues for the fleet rental division increased 12.3% over the same period. Full year 2012 net income was R$240.9 million, representing a 17.4% decrease from 2011 net income of R$291.6 million, primarily due to additional depreciation from a lower IPI tax rate. Free cash flow before growth and interest was R$528.5 million for 2012, an increase of 27.2% over 2011.
Webcast 4 q12 eng
- 1. Localiza Rent a Car S.A. 4Q12 and 2012 Earnings R$ million, IFRS 1 February 5, 2013
- 2. 4Q12 Highlights Net Revenues – Car Rental Division Net Revenues – Fleet Rental Division 290.3 266.5 137.9 R$ million 122.0 R$ million 4Q11 4Q12 4Q11 4Q12 Net Income – Consolidated Free cash flow before growth and interest 528.5 415.5 R$ million R$ million 86.1 78.7 4Q11 4Q12 2011 2012 2
- 3. Car Rental Division Daily Rentals (thousands) 12,794 13,749 10,734 7,940 8,062 5,793 4,668 3,324 3,560 2006 2007 2008 2009 2010 2011 2012 4Q11 4Q12 Net Revenues (R$ million) 1,093.7 980.7 802.2 565.2 585.2 428.0 346.1 266.5 290.3 2006 2007 2008 2009 2010 2011 2012 4Q11 4Q12 More moderate growth in business volumes due to the slower pace of economic growth. 3
- 4. Fly and Drive agreement with GOL 4
- 5. Car Rental Locations Number of car rental locations (Brazil) +25 474 449 415 381 346 312 279 2006 2007 2008 2009 2010 2011 2012 25 rental locations were added to the Brazilian footprint. 5
- 6. Utilization Rate Car Rental Division 10. 0 0 % 950% . 900% . 70.7% 67.9% 68.8% 69.1% 68.9% 70.8% 850% . 65.5% 800% . 750% . 700% . 650% . 600% . 550% . 500% . 450% . 400% . 350% . 300% . 250% . 200% . 150% . 100% . 5. % 0 0. % 0 2006 2007 2008 2009 2010 2011 2012 The division’s utilization rate of 70.8% was 1.9 p.p. higher than in 2011. 6
- 7. Fleet Rental Division Daily Rentals (thousands) 10,601 9,603 8,044 7,099 6,437 5,144 4,188 2,517 2,690 2006 2007 2008 2009 2010 2011 2012 4Q11 4Q12 Net Revenues (R$ million) 535.7 455.0 361.1 268.4 303.2 219.8 184.0 122.0 137.9 2006 2007 2008 2009 2010 2011 2012 4Q11 4Q12 Revenue growth outpaced volume growth supported by the higher average rental rate. 7
- 8. Net Investment Fleet Expansion * (quantity) 18,649 9,178 2,011 9,930 8,642 7,957 10,346 65,934 59,950 58,655 8,712 4,132 47,285 50,772 56,644 44,211 43,161 33,520 38,050 34,281 34,519 30,093 23,174 21,790 13,078 17,896 13,764 2006 2007 2008 2009 2010 2011 2012 4Q11 4Q12 Cars purchased Cars sold * It does not include theft / crashed cars. Net Investment (R$ million) 588.5 98.8 308.4 354.5 281.8 1,910.4 210.4 1,776.5 341.5 1,618.8 1,520.0 1,335.3 1,468.1 1,204.2 1,321.9 276.5 131.8 930.3 1,060.9 980.8 850.5 922.4 588.8 656.7 380.2 494.4 362.6 2006 2007 2008 2009 2010 2011 2012 4Q11 4Q12 Purchases (includes accessories) Net used car sales revenues In 4Q12, the Company resumed its fleet expansion by adding 4,132 cars. 8
- 9. Fleet Size cars at end of period 96,317 97,190 88,060 62,515 70,295 31,629 32,104 53,476 26,615 46,003 22,778 23,403 17,790 14,630 61,445 64,688 65,086 39,112 47,517 31,373 35,686 2006 2007 2008 2009 2010 2011 2012 Car Rental Fleet Rental The lower growth in fleet size reflects the productivity gains. 9
- 10. Seminovos Dealerships Number of dealerships (Brazil) +7 73 66 55 49 32 35 26 2006 2007 2008 2009 2010 2011 2012 7 new Seminovos used-car dealerships were opened to sustain fleet renewal. 10
- 11. Consolidated Net Revenues R$ million 3,166.7 2,918.1 2,497.2 1,520.0 1,820.9 1,468.1 1,823.7 1,505.5 1,321.9 1,126.2 980.8 922.4 850.5 772.7 795.5 588.8 1,450.0 1,646.7 1,175.3 380.2 362.6 655.0 842.9 898.5 537.4 392.5 432.9 2006 2007 2008 2009 2010 2011 2012 4Q11 4Q12 Rental Seminovos Rental revenues grew 10.3% in 4Q12, while Seminovos revenues were impacted by the lower IPI tax rate. 11
- 12. Consolidated EBITDA R$ million 821.3 875.6 649.5 504.1 469.7 311.3 403.5 218.3 226.3 2006 2007 2008 2009 2010 2011 2012 4Q11 4Q12 EBITDA margin from 2006 to 2011 was adjusted to reflect the accounting of accessories in the cost line: Divisions 2006 2007 2008 2009 2010 2011 2012 4Q11 4Q12 Car Rental 42.7% 45.0% 43.5% 39.8% 43.5% 43.9%* 40.9% 44.3% 40.2% Fleet Rental 70.7% 70.3% 67.5% 67.5% 66.7% 66.8%* 66.4% 66.7% 67.0% Rental Consolidated 52.4% 53.6% 51.2% 49.3% 50.7% 51.2%* 49.3% 51.3% 49.0% Used Car Sales 4.6% 5.5% 5.6% 1.1% 2.6% 2.8% 4.2% 2.1% 3.9% *Includes the adjustment of accessories and excludes the reversals of non-recurring provisions of R$10.6 million in 3Q11. EBITDA margin was impacted by higher expenses with property leasing and personnel. 12
- 13. Additional depreciation due to lower IPI tax rate R$ million Additional depreciation Division Accounted Estimated Total 9M12 4Q12 Subtotal From 2013 on 105.0 6.2 111.2 4.8 116.0 Car rental 90.6% 5.3% 95.9% 4.1% 100.0% 25.7 7.6 33.3 31.2 64.5 Fleet rental 39.8% 11.8% 51.6% 48.4% 100.0% Consolidated 130.7 13.8 144.5 36.0 180.5 95.9% of the additional depreciation in the car rental division has already been recorded. 13
- 14. Average depreciation per car in R$ IPI reduction effect Financial crisis effect 3,972.4 Robust used-car market 2,546.0 2,577.0 2,044.7 * 1,536.0 1,683.9 939.1 332.9 2006 2007 2008 2009 2010 2011 2012 4Q12 * Annualized IPI reduction effect Financial crisis effect 5,083.1 5,408.2 4,996.7 * Robust used-car market 4,371.7 4,133.0 3,509.7 2,383.3 2,395.8 2006 2007 2008 2009 2010 2011 2012 4Q12 * Annualized 14
- 15. Car Rental depreciation breakdown in R$ Car Rental 3,140.9 1,536.0 1,683.9 1,199.9 1,304.8 1,317.3 2010 2011 4Q12 * 4Q12 * Cars purchased Cars purchased after IPI reduction before IPI reduction Car average depreciation Accessory average depreciation * Annualized depreciation of cars purchased after the reduction in the IPI tax. Average depreciation per car of vehicles purchased after the IPI reduction is in line with the depreciation of previous years. 15
- 16. Consolidated Net Income R$ million 336,3 291.6 250.5 240.9 190.2 138.2 127.4 116.3 78.7 86.1 2006 2007 2008 2009 2010 2011 2012 4Q11 4Q12 2009 2010 2011 2012 Var. R$ Var. % 4Q11 4Q12 Var. R$ Var. % Reconciliation EBITDA vs. Net income 469.7 649.5 821.3 875.6 54.3 6.6% 218.3 226.3 8.0 3.7% Consolidated EBITDA (172.3) (146.3) (201.5) (376.9) (175.4) 87.0% (57.9) (67.1) (9.2) 15.9% Car depreciation Other property and equipment depreciation and (21.0) (21.1) (24.1) (32.9) (8.8) 36.5% (6.8) (8.9) (2.1) 30.9% amortization (112.9) (130.1) (179.0) (138.7) 40.3 -22.5% (41.2) (30.6) 10.6 -25.7% Financial expenses, net (47.2) (101.5) (125.1) (86.2) 38.9 -31.1% (33.7) (33.6) 0.1 -0.3% Income tax and social contribution Net income 116.3 250.5 291.6 240.9 (50.7) -17.4% 78.7 86.1 7.4 9.4% Excluding the additional depreciation of R$144.5 million in the year, net of income tax effects, Net income for 2012 was R$336.3 million. 16
- 17. Free Cash Flow Free cash flow - R$ million 2006 2007 2008 2009 2010 2011 2012 EBITDA 311.3 403.5 504.1 469.7 649.5 821.3 875.6 Net revenues from used car sales (588.8) (850.5) (980.8) (922.4) (1,321.9) (1,468.1) (1,520.0) Depreciated cost of used car sales (*) 530.4 760.0 874.5 855.1 1,203.2 1,328.6 1,360.2 (-) Income tax and social contribution (42.7) (63.4) (52.8) (49.0) (57.8) (83.0) (100.9) Working capital variation (4.8) 13.3 (44.8) (11.5) 54.5 (83.9) 37.1 Cash provided before capex 205.4 262.9 300.2 341.9 527.5 514.9 652.0 Net revenues from used car sales 588.8 850.5 980.8 922.4 1,321.9 1,468.1 1,520.0 Capex of car s for renewal (643.3) (839.0) (1,035.4) (947.9) (1,370.1) (1,504.5) (1,563.3) Net capex for renewal (54.5) 11.5 (54.6) (25.5) (48.2) (36.4) (43.3) Fleet renewal – quantity 23,174 30,093 34,281 34,519 47,285 50,772 56,644 Capex – other property and equipment (32.7) (23.7) (39.9) (21.0) (51.1) (63.0) (80.2) Free cash flow before growth and before interest 118.2 250.7 205.7 295.4 428.2 415.5 528.5 Capex of car s for fleet (expansion) reduction (287.0) (221.9) (299.9) (241.1) (540.3) (272.0) (55.5) Change in accounts payable to car suppliers (capex) 222.0 (51.0) (188.9) 241.1 111.3 32.7 (116.9) Net capex for fleet expansion (65.0) (272.9) (488.8) 0.0 (429.0) (239.3) (172.4) Fleet expansion – quantity 10,346 7,957 9,930 8,642 18,649 9,178 2,011 Free cash flow after growth and before interest 53.2 (22.2) (283.1) 295.4 (0.8) 176.2 356.1 (*) Technical discount deduction excluded until 2010 17
- 18. Changes in Net Debt R$ million FCF 356.1 Net debt Net debt 12/31/2011 12/31/2012 -1,363.4 - 1,231.2 (138.6) (85.3) Interest Dividends The strong cash generation supported a reduction of R$132.2 million (9.7%) in net debt. 18
- 19. Debt Profile - Principal R$ million 618.5 592.0 462.0 191.4 234.8 192.3 146.0 172.0 2012 2013 2014 2015 2016 2017 2018 2019 Cash 823.9 The Company continues to maintain a strong cash position and comfortable debt profile. 19
- 20. Debt Ratios Net debt vs. Fleet value 2,681.7 2,547.6 2,446.7 1,907.8 1,752.6 1,492.9 1,363.4 1,247.7 1,254.5 1,281.1 1,231.2 1,078.6 765.1 440.4 2006 2007 2008 2009 2010 2011 2012 Net debt Fleet value BALANCE END OF PERIOD 2006 2007 2008 2009 2010 2011 (*) 2012 (*) Net debt / Fleet value 36% 51% 72% 57% 52% 51% 48% Net debt / EBITDA (*) 1.4x 1.9x 2.5x 2.3x 2.0x 1.7x 1.4x Net debt / Equity 0.7x 1.3x 2.0x 1.5x 1.4x 1.2x 0.9x EBITDA / Net financial expenses 4.8x 5.4x 3.8x 4.2x 5.0x 4.6x 6.3x (*) As from January 1, 2011, based on the financial statements in IFRS Comfortable debt ratios. 20
- 21. Spread 21.25% 18.70% 17.03% 17.12% 16.94% 16.10% 7.8p.p. 12.9p.p. 11.54% 8.2p.p. 9.6p.p. 8.5p.p. 9.8p.p. 4.0p.p. 10.90% 8.40% 8.84% 7.59% 7.33% 8.60% 6.34% 2006 2007 2008 2009 2010 2011 2012 Cost of debt after tax ROIC (*) ROIC in 2008 and 2012 was calculated excluding additional fleet depreciation, which was treated as an asset loss since it was a nonrecurring event caused by external factors (reduction in IPI tax on new cars), in accordance with the concepts recommended by Stern Stewart. 21
- 22. Localiza Level I ADR Ticker Symbol: LZRFY CUSIP: 53956W300 ISIN: US53956W3007 Ratio: 1 Common Share : 1 ADR Exchange: OTC Depositary bank: Deutsche Bank Trust Company Americas ADR broker helpline: +1 212 250 9100 (New York) +44 207 547 6500 (London) E-mail: adr@db.com ADR website: www.adr.db.com Depositary bank’s local custodian: Banco Bradesco S/A, Brazil 22
- 23. Thank you! www.localiza.com/ir E-mail: ri@localiza.com Tel: +55 31 3247-7024 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 projections 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, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. 23