Localiza completa 4 q11 eng
Transcript of Localiza completa 4 q11 eng
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1April / 2012
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1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.2012 Brazilian Macroeconomic scenario
Agenda
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Company: integrated business platform
This integrated business platform gives Localiza flexibility and superior performance.
Synergies:
bargaining power
cost reduction
cross selling
� 12,958 cars
� 202 locations in Brazil
� 47 locations in South America
� 32 employees
� 1,251 employees in franchisee locations
� 74.6% sold to final consumer
� 66 stores
� 37 cities
� 870 employees
� Deactivated fixed asset sale
� 64,688cars
� 2.8 million clients
� 247 locations
� 4,090 employees
� 31,629 cars
� 687 clients
� 312 employees
Based on the 4Q11
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Total
1 year
R$ % R$ % R$
Revenues 19.9 100.0% 29.1 100.0% 48.9
Cost (8.2) -41.3% (8.2)
SG&A (2.7) -13.5% (2.9) -9.9% (5.5)
Net car sale revenue 26.2 90.1% 26.2
Book value of car sale (25.5) -90.0% (25.5)
EBITDA 9.0 45.2% 0.7 2.4% 9.7
Depreciation (vehicle) (1.7) -5.8% (1.7)
Depreciation (non-vehicle) (0.3) -1.7% (0.1) (0.5)
Interest on debt (2.4) -8.2% (2.4)
Tax (2.6) -13.0% 1.0 3.6% (1.5)
NET INCOME 6.1 30.4% (2.4) -8.4% 3.6
NOPAT 5.3
ROIC 17.5%
Cost of debt after tax 8.6%
Car Rental Seminovos
per operating car per operating car
Car rental financial cycle
Car sale revenue$26.2
$27.9Car acquisition
1 2 3 4 5 8 9 10 11 12Expenses, interest and tax
1-year cycle
Revenue
Spread8.9p.p.
*
* Investment in cars and PP&E (8%)
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$33.8Car acquisition
Net car sale revenue
$26.4
1 2 3 4 5 20 21 22 23 24
2-year cycle
Expenses, interest and tax
Revenue
Fleet rental financial cycle
Spread7.5p.p.
Total
2 years
R$ % R$ % R$
Revenues 34.0 100.0% 28.7 100.0% 62.7
Cost (9.7) -28.7% (9.7)
SG&A (1.8) -5.3% (2.3) -7.9% (4.1)
Net car sale revenue 26.4 92.1% 26.4
Book value of car sale (25.0) -90.0% (25.0)
EBITDA 22.4 66.0% 1.4 5.0% 23.8
Depreciation (vehicle) (8.3) -28.8% (8.3)
Depreciation (non-vehicle) (0.1) -0.1% (0.1)
Interest on debt (4.0) -14.1% (4.0)
Tax (6.7) -19.8% 3.3 11.4% (3.5)
NET INCOME 15.6 46.0% (7.6) -26.5% 8.0
NET INCOME per year 7.8 46.0% (3.8) -26.5% 4.0
NOPAT (annualized) 5.4
ROIC 16.1%
Cost of debt after tax 8.6%
Fleet Rental Seminovos
per operating car per operating car
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Pricing strategy
Company: managing assets
Targeted spread
Funding
Equity
Cash to renew the fleet
Assets (cash)
Profitability comes fromrental divisions
As
se
ts (
ca
rs)
Debt
Flexible and liquid assets.
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Company: stable management
Salim Mattar – 38y
Eugênio Mattar – 38y
Gina Rafael – 30y
João Andrade – 7y
Marco Antônio Guimarães – 21y
Bruno Andrade – 19y
BOARD OF DIRECTORS
CEO
COO
Car Acquisition
Legal
Localiza has a lean and efficient structure.
The succession process is already planned.
Roberto Mendes – 26y
Financial ITHuman
ResourcesAdministration
Daltro Leite – 26y
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Average growth of roughly 25% p.a. in the last years.
Company: growth and profitability track record
Revenues consolidated
EBITDA consolidated
331.4 408.4 537.4 655.0 842.9 898.51,175.3
1,450.0303.0
446.5588.8
850.5980.8 922.4
1,321.9
1,468.1
515.7457.4402.7296.1234.1225.9212.9
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
CAGR: 24.4%
CAGR: 15.9%
634.4854.9
1,126.2
1,505.5
1,823.7 1,820.9
2,497.2
2,918.1
Consolidated Rentals Used car sales
CAGR: 23.4%
4.3
42 62 85.2134.3 154 149.9 152.1 197.8
278.1 311.4403.5
504.1 469.7
649.5
821.3
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
CAGR: 23.9%
CAGR: 22.6%
-0.6 7.55.7 3.2 4.0 6.1 5.2
1.9Average
1.12.71.34.30.30.03.4GDP 2.9
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Rental revenues growth elasticity x GDP
2005 2006 2007 2008 2009 2010
5.5x
Localiza
GDP
Sector
2.8x
Company: GDP elasticity
The drivers combined with Localiza’s competitive advantages resulted in a growth above the industry level.
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18.9%20.6% 20.8% 21.8% 21.4%
23.5%
2005 2006 2007 2008 2009 2010
Company: market share - fleet
Consolidated
Source: ABLA 2011 yearbook
37.5% 12.5%
Car Rental division Fleet Rental division
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Company: recognitions and rewards
� 2011 Valor 200� 8th Company in growth and profitability
� Maiores e Melhores do Transporte 2011 (Biggest & Best of Transportation)� The best Company of the vehicle rental sector
�Institutional Investor’s ranking:
� BRIC Breakout� One of the 5 top picks Brazil for 2012
� Exame Magazine� Among the 5 best Companies of the consumer sector, in the article “Where to invest in 2012”
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1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.2012 Brazilian Macroeconomic scenario
Agenda
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Drivers and growth opportunities
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R$456 bn to be invested.
Car rental drivers: investments
Source: EXAME yearbook, 2011-2012
18.4%
Invested
To be invested
19.5%
R$174.6 bn
12.3%
R$150.4 bn
20.8%
R$85.8 bn
R$28.7 bn
18.7%
R$16.8 bn
154137
106
38
7 6 35
Oil/
gasTra
nsporta
tion
Elect
ricity
Wat
er/s
ewag
e
Telec
omm
unicat
ion
Arenas
Oth
ers
Housi
ng
Investments by sectorInvestments in Brazil
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Income increase and stable daily rental rates increased car rental affordability.
Car rental drivers: income and affordability
GDP per capita
(R$ thousands)
151
260
465510
545
240180 200
350
415380
300
18% 16% 15%
31%
35%
15%
37%38%
51%
22% 20%
27%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Monthly minimum salary (R$) Daily rental price over minimum salary (%)
Car rental affordability
Source: IBGE and Valor website
6.9 7.5 8.4 9.510.7 11.7 12.8
14.216.0 16.6
19.0 21.3
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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Strong domestic drivers leads to higher volumes.
Source: FGV, BCB, Infraero, Gol, Abecs and Exame (Dec/2011)
Car rental drivers: consumption
1320
31
2003 2009 2014e
53.8% 55.0%
A and B classes - million Potential consumption of Brazilians in 2011 - billion
Total populationR$ 2,500
A and BclassesR$ 930
71
128154
179
2003 2009 2010 2011
80.3%20.3% 16.2%
Air traffic passengers - million
15
45 5169
2003 2009 2010 2011
200.0% 13.3% 35.3%
Credit card holders - million
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17Source: ABLA and each company website (January, 2012)
Car rental opportunities: consolidation
Off-airport market is still fragmented.
Airport locations Off-airport locations
Car rental locations in Brazil
Others
31Avis
30
Unidas
27
Localiza
100
Hertz
41
Avis
24
Unidas
72
Localiza
349 Hertz
76
Others
2004
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Network expansion in Brazil
36Total
Branches2011
23Franchised
13Owned
Localiza’s network is still being expanded.
Brazilian distribution
Car rental strategy: organic growth
279 312 346381 415 449
254
2005 2006 2007 2008 2009 2010 2011
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19Source: ABLA and Datamonitor
Fleet rental drivers: outsourcing trend
Less than 50% of targeted fleet is rented.
Outsourced fleet penetration
Corporate fleet:4,200,000
Targeted fleet:500,000
Rented fleet:232,000
31,629
Brazilian Market World (%)
5.48.9
13.316.5
24.5
37.4
46.9
58.3
Bra
zil
Poland
Cze
ch R
epublic
Ger
man
y
France
Spain Uk
Holla
nd
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Income increase and credit availability are the major drivers for car sales.
Source: Bradesco, ANFAVEA, Exame (Dec/2011), PIB per capita: IPEADATA.
Used car sales drivers: affordability and penetration
Car purchase affordability
6.5
3.6
1.8
1.8
1.7
1.5
1.2
Brazil
Mexico
Germany
UK
France
Italy
USA
# of inhabitants per car (2009)
8.0 7.9
7.4
6.9
6.5
2005 2006 2007 2008 2009
# of inhabitants per car - Brazil
66
94.9113
2003 2009 2014e
43.8%
19.1%
Middle class - million
148 128115
97 10493
80
5256586875
151180 200
240 260300
350
545510465
380415
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0
1 4 0
1 6 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0
1 0 0
2 0 0
3 0 0
4 0 0
5 0 0
6 0 0
Number of minimum w ages to buy a new car Monthly minimum salary (R$)
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7,016,5766,743,699
7,114,870 7,260,054 7,071,525
8,429,3098,862,951
1,620,657 1,830,4022,342,059
2,671,3383,009,482 3,329,170 3,425,499
Brazilian car market: new cars x used cars
New cars X used cars
Source: FENABRAVE (Autos + light commercial)
Used car market is currently 2.5x the new car market.
New cars
Used cars
4.3x 3.7x 3.0x 2.7x2.3x
2.5x 2.6x
2005 2006 2007 2008 2009 2010 2011
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0km SeminovosUsed Seminovos2 years old Seminovos
1.5% 10.6%
Up to 2 yearsUp to 2 years
476,827476,827
Brazilian car market : 2011 market share
Source: Fenabrave 2011
0KM0KM
3,425,4993,425,499
0.6%
UsedUsed
8,862,9518,862,951
Localiza used cars x Car market
Used cars sold: 50,772
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Brazilian car market: monthly sale per store
Localiza Seminovos monthly sale per store is in line with market average.
10996
91 9082 84 81
48
FIAT VW FORD GM SEMINOVOS* SECTOR
2010**
RENAULT PEUGEOT
Monthly sale / lots*
Source: Anfavea (National OEM’s Association); number of dealers from each OEM association website (nov/11 )
* Average sales per lots (excluding auto malls – 10 stores)
** Total sales divided by the number of dealers
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The network is being expanded to support rentals’ growth.
Brazilian distribution New lots
Points of sale
Status
14In construction and
prospection
Used car sales strategy: network expansion
26 32 3549 55
66
13
2005 2006 2007 2008 2009 2010 2011
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61% 49% 57% 58% 59%
39% 51% 43% 42% 41%
2010 1Q11 2Q11 3Q11 4Q11
3,9403,860
4,159
4,545
4,359
2010 1Q11 2Q11 3Q11 4Q11
Used car sales: sold cars evolution
The increase on sales was supported by the opening of new points of sale.
Sales profile
Financed In cash
Monthly average of sold cars
The macro prudential measures impacted the sales profile in the 1Q11.
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1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.2012 Brazilian Macroeconomic scenario
Agenda
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Raising money
Renting cars Selling carsBuying
cars
Cash to renew the fleet or pay debt
$
$
Profitability comes from rental divisions
Competitive advantages: 38 years of experience in managing assets
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Competitive advantages: raising money
Global Scale
National Scale
Investment grade: lower spreads and longer terms
Localiza raises money with lower spreads when compared to Brazilian competitors.
As of April, 2011.
Renting carsRaisingmoney
Sellingcars
Buyingcars
BBB- FitchBaa3 Moody’s
BBB- S&PBBB+ S&P B+ S&P B+ Fitch B2 Moody's
BBB+ (bra) FitchAa1.br Moody’sAA+(bra) Fitch
brAAA S&PA (bra) Fitch A- (bra) Fitch
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2.3%
Fiat
39.3%GM
21.0%
Renault
9.9%Ford
11.0%
Others
1.3%
VW
17.5%
Competitive advantages: buying cars
Better conditions due to higher volumes
Localiza announced the purchase of 100,000 cars for 2H11 and 2012.
Localiza’ share in national sales of the main automakers in 2011: GM, FIAT, VW, Ford
and Renault
Purchases by brand in 2011
Renting carsRaisingmoney
Buyingcars
Sellingcars
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The Company is present in 213 cities where the other largest networks do not operate.
Competitive advantages: renting cars
Know HowBrand Brazilian distribution
117
99
54
# o
f b
ran
ch
es
# o
f cit
ies
450
270
Localiza Hertz Unidas Avis
Source: Each company website (January, 2012)
Renting carsRaisingmoney
Buyingcars
Sellingcars
315
80 7540
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Sales to final consumer
Competitive advantages: selling cars
Buffer: additional fleet
Selling directly to final consumer reduces depreciation.
Cars available for sale are used by the car rental division during peaks of demand.
Renting carsRaisingmoney
Buyingcars
Sellingcars
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1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.2012 Brazilian Macroeconomic scenario
Agenda
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Highlights
� Investment grade by Moody’s and Fitch
� Included at Bovespa Index starting 01/02/2012
� Elected the best CEO, CFO and IR of the transportationsector by Institutional Investor Magazine ranking
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1,175.3
1,3 2 1.91,4 6 8 .1
1,4 50 .0
2 0 10 2 0 11
Rentals Used car sales
Consolidated net income
Highlights
Consolidated EBITDA
64.688
31.629
61.445
26.615
2010 2011
9.4%
End of period fleet
88,06096,317
Qu
an
tity
Car rental Fleet rental
R$ m
illio
n
649.5 821.3
2010 2011
26.5%
Net Revenues - Consolidated
R$ m
illio
n
2,918.12,497.2 16.9%
23.4%
291.6250.5
2010 2011
16.4%R$
milli
on
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Car Rental Division
Revenues from the Car Rental division grew 3.8x in six years.
# daily rentals (thousand)
Net revenues (R$ million)
3,4114,668
5,793
7,940 8,062
10,734
12,794
3,015 3,324
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
CAGR: 24.6%
19.2% 10.3%
266.5235.7
980.7
802.2
585.2565.2428.0
346.1258.6
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
CAGR: 24.9%
22.3% 13.1%
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Fleet Rental Division# daily rentals (thousand)
Net revenues (R$ million)
3,3514,188
5,1446,437
7,0998,044
9,603
2,182 2,517
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
CAGR: 19.2%
15.4%
19.4%
142.0184.0
219.8268.4
303.2361.1
455.0
100.8 122.0
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
CAGR: 21.4%
26.0%21.0%
Revenues from the Fleet Rental division grew 3.2x in six years.
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Net Investment
In 2011 there were added 9,178 cars to the fleet with an investment of R$308.4 million.
Fleet increase * (quantity)
Purchased cars Sold cars
Purchases (accessories included) Net used car sales revenues
Net investment (R$ million)
26,10533,520
38,05044,211 43,161
18,76323,174
30,09334,281 34,519
13,078
25,327
59,950
21,790
65,934
12,799
47,285 50,772
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
7,34210,346 7,957
18,649
9,930 8,642
12,5288,712
9,178
690.0930.3
1,060.9
1,335.31,204.2
1,910.41,776.5
656.7446.5
588.8
850.5980.8 922.4
1,321.91,468.1
382.3 380.2
720.0
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
243.5341.5 210.4
308.4
354.5281.8
588.5
337.7 276.5
* It does not include theft / crashed cars.
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Utilization rate and average fleet age
Car rental division
In 4Q11, utilization rate presented a growth of 2.6 p.p when compared to 4Q10.
66.2% 69.9% 68.2% 68.9% 69.7% 68.9%66.3%74.1%
6.35.5
6.3 6.56.66.9 7.3 7.3
0 .0 %
1 0 .0 %
2 0 .0 %
3 0 .0 %
4 0 .0 %
5 0 .0 %
6 0 .0 %
7 0 .0 %
8 0 .0 %
9 0 .0 %
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Utilization rate Average operating fleet age
14.2 13.5 13.5 13.6 13.413.3 15.3 18.7 Average sold fleet
age (month)
Elections’ effect
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Distribution
# of used car sales stores
2632 35
4955 66
13
2005 2006 2007 2008 2009 2010 2011
279 312 346 381 415 449
254
2005 2006 2007 2008 2009 2010 2011
# of rental locations in Brazil
Company is still expanding its footprint.
+11
+34
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End of period fleetQuantity
31,373 35,686 39,11247,517
61,445 64,68811,76214,630
17,79023,403
22,778
26,61531,629
24,103
2005 2006 2007 2008 2009 2010 2011
Consolidated fleet grew 2.7x in six years.
35,86546,003 53,476
62,51570,295
88,060
Car rental Fleet rental
CAGR: 17.9%
9.4%96,317
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408.4 537.4 655.0 842.9 898.5 1,175.3 1,450.0
339.9 392.5
446.5588.8
850.5980.8 922.4
1,468.1
382.3 380.2
1,321.9
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
Consolidated net revenuesR$ million
Net revenue grew 3.4x in six years.
Rentals Seminovos
854.91,126.2
1,505.51,823.7 1,820.9
2,497.2
CAGR: 22.7%2,918.1
722.2 772.77.0%
15.5%23.4%
16.9%
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EBITDA R$ million
EBITDA grew 26.5% in the year versus a 23.4% growth in rental revenues, in 2011.
2.8%
53.8%
68.6%
46.9%
2011
2.6%
52.3%
68.0%
45.3%
2010
5.6%
53.3%
69.1%
45.9%
2008
53.6%51.5%51.1%54.5%52.9%53.6%Rentals consolidated
2.1%
67.8%
47.1%
4Q11
3.5%
69.6%
43.7%
4Q10
1.1%
68.7%
41.9%
2009
4.6%
71.4%
43.4%
2006
5.5%
71.3%
46.0%
2007
13.2%Used car sales
65.5%Fleet Rental
47.5%Car rental
2005Divisions
277.9 311.3403.5
504.1 469.7
649.5
821.3
188.3 218.3
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
CAGR: 19.8%
26.5%15.9%
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1,318.01,580.5
1,331.01,492.3
1,251.9
1,986.01,942.5 1,993.2
1,536.0 1,683.9
332.9
2,546.0 2,577.0
939.1492.3
2005 2006 2007 2008 2009 2010 2011
Average depreciation per car – car rental
Hot used car market
Financial crisis effect
Trend of a higher depreciation due to higher sales expenses, in 4Q11.
* Annualized
1Q10* 1Q11* 2Q10* 2Q11* 3Q10* 3Q11* 4Q10* 4Q11*
R$ per quarter
R$ per year
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R$ per quarter
3,509.74,133.0
2,395.8
5,083.14,371.7
2,383.32,981.3
2005 2006 2007 2008 2009 2010 2011
Average depreciation per car – fleet rental
Depreciation increase reflects the market conditions for higher end cars.
* Annualized
3,254.43,693.9
4,049.34,241.8 3,990.64,277.2
2,989.4
4,020.8
1Q10* 1Q11* 2Q10* 2Q11* 3Q10* 3Q11* 4Q10* 4Q11*
R$ per year
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Consolidated net incomeR$ million
The increase in the basic interest rate and in depreciation have impacted 2011 net income.
78.769.4
291.6250.5
116.3127.4
190.2138.2
106.5
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
13.4%
16.4%
9.3
(3.9)
0.1
(1.0)
(15.9)
30.0
(5.2)
35.2
Var. R$
41.1
(23.6)
(48.9)
(3.0)
(55.2)
171.8
7.0
164.8
Var. R$
190.2
(81.4)
(74.4)
(14.4)
(43.1)
403.5
46.4
357.1
2007
127.4
(46.6)
(133.3)
(18.3)
(178.5)
504.1
54.5
449.6
2008
291.6
(125.1)
(179.0)
(24.1)
(201.5)
821.3
41.4
779.9
2011
16.4%
23.3%
37.6%
14.2%
37.7%
26.5%
20.3%
26.8%
Var. %
116.3
(47.2)
(112.9)
(21.0)
(172.3)
469.7
10.6
459.1
2009
250.5
(101.5)
(130.1)
(21.1)
(146.3)
649.5
34.4
615.1
2010
15.9%218.3188.3EBITDA Consolidated
13.4%
13.1%
-0.2%
17.2%
37.9%
-39.4%
20.1%
Var. %
78.769.4Net income
(33.7)(29.8)Income tax and social contribution
(41.2)(41.3)Financial expenses, net
(6.8)(5.8)Other property and equipment depreciation
(57.9)(42.0)Cars depreciation
8.013.2EBITDA – Used car sales
210.3175.1EBITDA – Rentals and franchising
4Q114Q10Reconciliation EBITDA x net income
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Free cash flow - FCF
Positive free cash flow before interest in 2011, even after expanding the fleet by 9,178 cars.
(*) without technical discount deduction
18,649
(0.8)
111.3
(540.3)
428.2
(51.1)
(48.2)
(1,370.1)
1,321.9
527.5
54.5
(57.8)
1,203.2
(1,321.9)
649.5
2010
9,1788,6429,9307,95710,3467,342Fleet increase - quantity
176.2
32.7
(272.0)
415.5
(63.0)
(36.4)
(1,504.5)
1,468.1
514.9
(83.9)
(83.0)
1,328.6
(1,468.1)
821.3
2011
295.4
241.1
(241.1)
295.4
(21.0)
(25.5)
(947.9)
922.4
341.9
(11.5)
(49.0)
855.1
(922.4)
469.7
2009
(283.1)
(188.9)
(299.9)
205.7
(39.9)
(54.6)
(1,035.4)
980.8
300.2
(44.8)
(52.8)
874.5
(980.8)
504.1
2008
(22.2)53.2 (161.3)Free cash flow after growth and before interest
(51.0)222.0 (25.5)Change in accounts payable to car suppliers (capex)
(221.9)(287.0)(194.0)Capex of car - growth
250.7 118.2 58.2 Free cash flow before growth and interest
(23.7)(32.7)(28.0)Capex – other property and equipment, net
11.5 (54.5)(49.5)Net capex for renewal
(839.0)(643.3)(496.0)Capex of car - renewal
850.5 588.8 446.5 Used car sales net revenues
262.9 205.4 135.7 Cash provided before capex
13.3 (4.8)(24.2)working capital variation
(63.4)(42.7)(32.7)(-) Income tax and social contribution
760.0 530.4 361.2 Depreciated cost of used car sales (*)
(850.5)(588.8)(446.5)Used car sales net revenues
403.5 311.3 277.9 EBITDA
200720062005Free cash flow - R$ million
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Changes in cash and debt evolutionR$ million
65.5% of the cash generated was invested in expanding fleet by 9,178 cars.
- 1,363.4
(179.0)
Interest
(79.5)
Dividends and interest on own
capital paid
Net debt12/31/2011
FCF beforegrowth
415.5
-1,281.1
Net debt12/31/2010
(272.0)
Investment in fleetincrease
Variation onpayables –automakers
32.7
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Debt profileR$ million
Cash strengthening for an eventual adverse scenario.
94.8
232.5312.8 303.4
562.0
432.0
26.0 52.0
2011 2012 2013 2014 2015 2016 2017 2018
Cash
711.0
2019
Improving duration from 3.8 years in 2011 to 4.3 years in 2012.
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Debt – ratiosR$ million
The Company is still presenting conservative indebtedeness ratios.
Net debt Fleet value
4.6x5.0x 4.2x 3.8x 5.4x 4.8x 3.3x EBITDA / Net financial expenses
1.4x
2.0x
52%
2010
1.5x
2.3x
57%
2009
2.0x
2.5x
72%
2008
1.2x1.3x0.7x1.4xNet debt / Equity
1.7x1.9x1.4x1.9xNet debt / EBITDA
51%51%36%60%Net debt / Fleet value
2011200720062005END OF PERIOD BALANCE
535.8 440.4765.1
1,254.51,078.6
1,281.1 1,363.4
900.21,247.7
1,492.91,752.6
1,907.8
2,446.7 2,681.7
2005 2006 2007 2008 2009 2010 2011
Net debt x Fleet value
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Spread
8.5
8.6%
17.1%
0.59x
28.9%
2,445.3
2011
9.6
7.3%
16.9%
0.59x
28.6%
1,984.6
2010
8.2
8.8%
17.0%
0.53x
32.1%
1,642.3
2008
4.0
7.6%
11.5%
0.53x
21.9%
1,702.3
2009
12.97.811.2Spread (ROIC – Interest after tax) - p.p.
8.4%10.9%13.6%Interest on debt after tax
21.3%18.7%24.8%ROIC
0.58x0.55x0.67xTurnover of average capital investment (over rental net revenues)
36.9%34.5%37.0%NOPAT margin (over rental net revenues)
1,137.5 986.2 606.3 Average capital investment - R$ million
200720062005
Spread
13.6%10.9%
8.4% 8.8% 7.6% 7.3% 8.6%
24.8%
18.7%21.3%
17.0%
11.5%
16.9% 17.1%
2005 2006 2007 2008 2009 2010 2011
Interest on debt after tax ROIC
11.2p.p.7.8p.p. 12.9p.p.
8.2p.p.4.0p.p. 9.6p.p. 8.5p.p.
ROIC reflects the pricing strategy of the Company for consolidating the market.
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1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.2012 Brazilian Macroeconomic scenario
Agenda
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2012 Macroeconomic scenario
11.00%
9.75%9.50% 9.50%
10.00%10.00%
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2.70%2.50%
2.90%
3.40%3.70%
2.60%
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
Source: BR Central Bank – Market forecast system as of 01/20/2012 and Focus Bulletin
GDP evolution forecastAccumulated in 4 quarters
Interest rate evolution forecast
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IR Team
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’smanagement, 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 hereinshall form the basis of any contract or commitment whatsoever.
Nora LanariRoberto Mendes Silvio Guerra
CFO - RI RI RI
Website: www.localiza.com/ir E-mail: [email protected] Phone: 55 31 3247-7024