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March 17, 2016

The 25th most valuable brand in Brazil.


Source:

Company: integrated business platform

Car Rental

Fleet Rental

76,755 cars

33,948 cars

5.7 million clients

849 clients

320 locations

384 employees

4,766 employees

Synergies:
bargaining power
cost reduction

cross selling

Franchising

Seminovos

13,992 cars

56.7% sold to final consumer

174 locations in Brazil

77 stores

70 locations in South America

47 cities

35 employees

1,000 employees

This integrated business platform gives Localiza flexibility and superior performance.
Based on the 4Q15

Competitive advantages

Profitability comes from rental divisions

Raising
money

Buying
cars

Renting Cars

Selling
Cars

Cash to renew the fleet or pay debt

42 years of experience in managing assets and generating value.


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Competitive advantages: raising money

Raising
money

Renting Cars

Buying
cars

Selling
Cars

Investment grade: lower spreads and longer tenors

National Scale

brAA+ S&P
Aa2.br Moodys
AAA(bra) Fitch

brAA- S&P
A+ (bra) Fitch

brA S&P
A- (bra) Fitch

brAA- S&P
A+(bra) Fitch

BBB- Fitch
Ba2 Moodys
BB+ S&P

Baa1 Moodys
BBB+ S&P

B1 Moodys
B+ S&P

Ba3 Moodys
BB- S&P
BB- Fitch

A(bra) Fitch

Global Scale

Localiza raises money with better conditions then its competitors.


Source: Bloomberg and companies website

As of March, 2016.

Competitive advantages: buying cars

Raising
money

Renting Cars

Buying
cars

Number of cars purchased 9M15

Selling
Cars

Localizas share in the internal sales of the


major OEMs - 2015

45,308 *
28,551

Localiza

Movida

13,355

8,730

Unidas

Locamerica

4.2%
* In 2015 Localiza bought 68,319 cars, Including Franchising.

Localiza buys cars with better conditions due to the volume of purchases.
Source: each company website and ANFAVEA

Competitive advantages: renting cars


Raising
money

Renting Cars

Buying
cars

Client Oriented

Brazilian distribution
# of branches*

Brand

490

Selling
Cars

Net Promoter Score

484
45
146

80.7%

185
108

Localiza

Localiza: 1st place


in the Car rental
category

Competitors

# of cities**

442

Focus in Technology
155

Localiza

Unidas

95

107

Hertz

Movida

43
Avis

Source: Each company website and Earnings Release


*As of September, 2015
**As of November, 2015

Competitive advantages: Innovation


Raising
money

Buying
cars

Renting Cars

Selling
Cars

CONNECTED FLEET

MOBILE SOLUTION ONLINE FLEET RENTAL

Integrated technology solution that


increases competitive intelligence
and leverages productivity gains.

Integrated mobile solution to


fleet rental services for drivers
and contract manager.

Rapid diagnosis and friendly


vision of the fleet by the
customer.

Differentiated offer with higher added value to the customer.


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Competitive advantages: selling cars


Raising
money

Buying
cars

Sales to final consumer

Renting Cars

Buffer: additional fleet during


peaks of demand

Selling
Cars

Information/mobility:
Ipad for Salesmen

Support sale
Access to the database
Customer registration
Agility in car sales

Distribution channel: 200 cities and 1,900 customers.


Sales center: 20k incoming calls per month with 55% visits to stores scheduled.
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ROIC versus cost of debt after taxes

16.9%

17.1%

ROIC

16.1%

16.5%

17.5%
17.0%
15.8%

9.6p.p.

8.5p.p.

9.8p.p.

10.5p.p.

9.5p.p.

6.3p.p.

7.5p.p.

9.5%

Cost of debt
after taxes 7.3%

8.6%

2010

2011

8.0%
6.3%

6.0%

2012

2013

2014

2015

Calculated based on the tax effective rate of 2015

Considering the effective income tax and social contribution rate in 2015, ROIC would have
been 17.0% and the spread, 7.5p.p..
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Localiza vs. players


ROIC 2015

Profitability

17.0%

Localiza

8.1%

9.1%

Unidas
2014

Locamerica
2014

6.5%

8.4%

Ouro Verde JSL Consolidada

ROE 2015
24.3%

Localiza
Fleet

7.1%

8.2%

Unidas
2014

Locamerica
2014

5.0%

4.5%

Ouro Verde JSL Consolidada

RAC+Fleet Rental

RAC+Fleet 2014

Fleet Rental 2014

Fleet Rental

RAC+Fleet Rental

124,695

40,296

30,291

28,813

53,439

Source: Companies Financial Statements

Reference
ROIC = NOPAT (considering the effective tax rate) / (Average net debt + average equity)
ROE = Net income / Equity at the beginning of the year

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Localiza vs. players


Debt ratios

Net Debt / EBITDA - 2015

1.7x
Localiza

2.2x
Unidas
2014

3.3x

3.8x

4.3x

Locamerica
2014

Ouro Verde

JSL
Consolidated

Net Debt / Equity - 2015


9.7x
4.6x

0.8x

1.0x

Localiza

Unidas
2014

Source: Companies Financial Statements.

2.2x

Locamerica
2014

Ouro Verde

JSL
Consolidated
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2015 Consolidated breakdown


R$ million

Net Revenues
R$3,928

R$ 608
16%

R$ 1,275
32%

R$ 2,045
52%

EBITDA
R$935

R$ 378
40%

R$ 407
44%

EBIT*
R$735

Net Income
R$402

R$ 438
60%
R$ 297
40%

R$ 177
44%

R$ 225
56%

R$ 150
16%

*Seminovos results recorded in the Car Rental and Fleet Rental Divisions

Companys profitability comes from


Car Rental and Fleet Rental Divisions.
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Consolidated net revenues


R$ million

2,497.2
1,321.9

2,918.1

1,468.1

3,166.7
1,520.0

3,506.2
1,747.3

3,892.2

3,928.0

2,018.2

2,044.9

1,175.3

1,450.0

1,646.7

1,758.9

1,874.0

1,883.1

1,035.2
553.0
482.2

2010

2011

2012

2013

2014

2015

4Q14

Consolidated net revenues grew 0.9% in 2015 when compared with 2014
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Consolidated EBITDA
R$ million

(*)From 2012 on, accessories and freight of new cars have been accounted directly in the cost line, impacting EBITDA but
reducing depreciation costs.

The R$35.0 million drop in EBITDA was more than offeset by the reduction of
R$43.7 million in depreciation
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Consolidated EBIT
R$ million

610.3 *

*2012 EBIT was impacted by R$144.5 million of additional depreciation related to IPI (sales tax) reduction.

Even in a adverse scenario, EBIT grew R$8.7 million in 2015

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Consolidated net income


R$ million

336.3 *

* Pro forma 2012 net income excluding additional depreciation related to the IPI tax reduction, net of income tax.

Reconciliation EBITDA x Net income

2010

2011

2012

2013

2014

2015 Var. R$ Var. %

Consolidated EBITDA

649.5

821.3

875.6

916.5

969.8

934.8 (35.0)

Cars depreciation

Cars additional depreciation IPI effect


Other property depreciation and amortization

(146.3) (201.5) (232.4) (229.0) (207.4) (163.6)

(9.6) -4.0%

43.8 -21.1% (54.8) (44.0)

10.8 -19.7%

(21.1) (24.1) (32.9) (35.4) (35.7) (35.7)

(144.5)

237.6 228.0

-3.6%

4Q14 4Q15 Var. R$ Var. %

(9.0) (9.0)

Financial expenses, net

(130.1) (179.0) (138.7) (110.6) (151.1) (202.7) (51.6) 34.1% (31.6) (43.5) (11.9) 37.7%

Income tax and social contribution

(101.5) (125.1) (135.3) (157.2) (165.0) (130.4)

Income tax and social contribution IPI effect


Net income of the period

250.5

291.6

49.1
240.9

384.3

34.6 -21.0% (40.0) (25.6)

410.6

402.4

(8.2)

-2.0%

14.4 -36.0%

102.2 105.9

3.7

3.6% increase in net income when compared to 4Q14.


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3.6%

Debt maturity profile (principal)


R$ million

As of December 31, 2015 after debentures 10th issuance


1,034.4

2015

355.3

432.9

2016

2017

770.0

672.5

670.0

572.5

2020

2021

619.5
246.2
2018

2019

1,385.1
New debentures issuance

1,585.1*
Cash

*In 01/31/2016 Localizas cash position was R$1,337.0 after the payment to OEMs.

Cash strenghth after the 10th debentures issuance


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Debt - ratios
Net debt vs. Fleet value
3,642.7

3,296.3
2,681.7

2,446.7
1,281.1

1,363.4

2010

2,797.9

2,547.6
1,332.8

1,231.2

2011

2012

2013

Net debt

BALANCE AT THE END OF PERIOD

1,322.3

1,588.6

2014

2015

Fleet value

2010(*)

2011

2012

2013

2014

2015

Net debt / Fleet value

52%

51%

48%

48%

40%

44%

Net debt / EBITDA

2.0x

1.7x

1.4x

1.5x

1.4x

1.7x

Net debt / Equity

1.4x

1.2x

0.9x

1.0x

0.8x

0.8x

EBITDA / Net financial expenses

5.0x

4.6x

6.3x

8.3x

6.4x

4.6x

(*) 2010 ratios based on USGAAP financial statements

Comfortable debt ratios


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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 banks local custodian: Banco Bradesco S/A, Brazil

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Disclaimer

Eugnio Mattar
CEO

Roberto Mendes
CFO and IR

Website: www.localiza.com/ir

Nora Lanari
Head of IR

Maria Carolina Costa


IR Manager

E-mail: ri@localiza.com

Mariana Campolina
IR Manager

Phone: 55 31 3247-7024

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. 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 LOCALIZAs 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.
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.

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