Management Presentation 2Q12

Management Presentation
2Q12
1
A brief history of Unidas
 In 1985, five car rental Companies and two Investors joined together in the foundation of Unidas, which began
operations with seven sites and approximately 500 vehicles
 SAG acquired Unidas’ control in 2001
 In July 2011, Unidas concluded a R$300 mm capital increase. Brazilian Private Equity funds Gávea, Kinea
and Vinci now hold 47.3% of Unidas – equally split, while SAG remains with 52.7%
 Today, Unidas is one of the leading Companies in car rental and fleet management, with a market share of
aprox. 6.6% and 7.1% respectively
 After 27 years of experience, on June 30th, Unidas has a service network of 137 service points, comprising:
–
–
–
–
43 Rent-a-Car own Stores
67 Rent-a-Car Franchised Stores
16 Corporate Service Stations
11 Car Sales Showrooms
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July 2011: R$300 mm capital injection
R$100 mm
R$100 mm
15.76%
15.76%
15.76%
Corporate Governance
SAG and the Funds share the
control of Unidas: Management,
Compensation, Budget, Capex,
Leverage and other strategic decisions
are jointly taken
R$100 mm
Successful Track-record
Gávea, Kinea and Vinci have a long
track-record of successful
investments in multiple sectors and
will actively contribute to Unidas
growth together with SAG
Capital Structure
Gávea, Kinea and Vinci now hold
47.3% of Unidas – equally split,
while SAG remains with 52.7%
Capital increase decreased leverage
from 3.5x Net Debt / EBITDA to 1.9x
Source: Unidas
3
Corporate Structure
Shareholders known for the quality of management and governance in their investments
SAG
1
Vinci
52.72%
15.76%
Gávea
15.76%
15.76%
99.99%
99.99%
Unidas Comercial
de Veículos LTDA
Unidas Locadora
de Veículos LTDA
99.99%
Unidas Franquias
do Brasil S.A.
Source: Unidas
Note
1. SAG owns a 52.72% stake in Unidas, being 49.83% directly and 2.89% trhrough Novinela, one of its subsidiaries. Nevertheless, the shareholders agreement provides shared control.
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SECTION 1
Company Overview
Flexible and Integrated Business Model
Value Chain for Unidas
Franchises
2.1
Cars Rental
Stores
Auctions
1
3
Cars Sale
Stores
2.2
1.
2.
3.
Fleet Management
Purchase of cars directly from automakers (about 15,400 cars purchased in 2011)
Making the necessary procedures (license, inspection) and availability of vehicles for rent. Two business segments:
1.
Rent a car (franchises and stores)
2.
Fleet Management
Sale of the vehicle at the end of the cycle
Integrated business model allows gains in all stages of Unidas’ value chain
Source: Unidas
6
Scale Gains of Unidas’ Operations
The network size
increases brand
recognition
Car Sales network
creates better
conditions for resale
Rental Revenues
Purchase of Cars
Scale Gain
Scale allows bigger
discounts with automakers
Scale Gain
Maintenance
Scale Gain
Scale reduces
maintenance costs of cars
Credit Score
Car Sales
Scale Gain
Scale influences the
rating, reducing the
cost of financing
Scalability of operations increases earnings during the Unidas vehicles’ lifetime
Source: Unidas
7
New Unidas – A turnaround story

People and Structure – Function based organizational structure changed to Business Unit focused
structure

Portfolio management –search for profitability

Car rental: business expansion

Underwriting – More conservative approach to Residual Value risk led to stricter underwriting
policies

Improved controls and procedures
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Talented and aligned management
Background
Pedro Almeida
 24 years in auto sales and rental at Ford, Honda and SAG
CEO
High performance culture
Gisomar Marinho
CFO
Carlos Sarquis
RAC
Paulo Fraga
Fleet Operations
Levi Avila da Fonseca
Used Car Sales
Fani Feitosa
People & Mngmt
 22 years in finance at CEMAR, Lojas Americanas, Baker and
Hughes and others
 18 years in consumer finance at Grupo Itaú Unibanco, McKinsey
and Chase Manhattan Bank
 15 years in commercial, operational and administrative areas at
ALL, Vale, Usiminas and Rocha Terminais Portuários
 15 years in retail banking, leading some restructuring processes
and new ventures at Grupo Itaú Unibanco and Grupo BBM
 High performance culture to be
fostered, leveraging Funds
experience in other industries
 Relevant variable compensation to
be paid according to ROIC, Cash
generation, Growth and Quality
targets
 Retention of top talent is key
performance indicator for leadership
 10 years in HR at Ambev, Vivax and Danone
Source: Unidas
9
Reestructure: Capital Return and Procedures Improvement
FM Portfolio Reduction

Reduction from 23 thousand to 17 thousand cars in Fleet
Management division, not renewing non-profitable contracts.
Increase in average profitability

Residual Value Approach

Introduction of new tools and methodologies for
delinquency control
Result of Mark-to-Market (R$ millions)
RAC: Rate per day increased by 19%, from R$73 in June
2009 to R$88 in June 2012
Collection

Introduction of new tools and methodologies for delinquency
control
Delinquency (after 3 months)
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Stores Expansion
Expansion of the store network
+40 stores
+10 stores
+13 stores
+3 spots
+14 stores
Opening of 8 Rent-a-Car stores, 5 Rent-a-Car Franchises and 3 Car Sales showrooms until June/12
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Enterprise Partnership
In April 2012, Unidas became the exclusive Master Franchise with the U.S. company Enterprise Holdings to operate the
Alamo Rent a Car and National Car Rental brands in Brazil for 15 years, with possibility of renewal for another five years.
Illustration from the Stores in Airports
The Stores will be adapted with the inclusion of
Alamo and National brands.
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SECTION 2
Car Rental Market
in Brazil
Overwiew of the Car Rental Market
Growing Market for Car Rental
Participation of Fleet Management (% of total fleet)
High Growth
Potential
Sources: Denatran, Fenabrave, ABLA and Data Monitor
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SECTION 3
Results
2Q12 and 1H12
Destaques Financeiros - Consolidado
Receita Líquida Consolidada (R$MM)
EBITDA (R$MM) e Margem EBITDA
8,9%
5,0%
26,2%
(13,5)%
EBIT Ajustado (R$ MM) e Margem EBIT Ajustado
1
Lucro (Prejuízo) Líquido Ajustado (R$MM)
1
61,6%
293,3%
131,5%
131,3%
1 – EBIT e Lucro Líquido ajustados excluindo o efeito da depreciação extraordinária de R$31,1 MM registrada no 2T12, devido à redução do IPI para carros novos anunciada pelo governo em 21 de maio de 2012.
Fonte: Unidas
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Destaques por Negócio – RAC e TF
Receita Líquida (R$ MM) por negócio
EBITDA (R$ MM) por negócio
9,6%
7,1%
EBIT Ajustado (R$ MM) por negócio
23,3%
28,1%
1
Frota Total por negócio (nº veículos) em 30/06/2012
96,5%
201,1%
1 – EBIT ajustado excluindo o efeito da depreciação extraordinária de R$31,1 MM registrada no 2T12, devido à redução do IPI para carros novos anunciada pelo governo em 21 de maio de 2012.
Fonte: Unidas
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Fleet
Fleet Trend (thousand of vehicles)
Net CAPEX – Fleet (R$ million)
49
49
+2,374 car (8.3%)
Average Fleet Age (months)
25
50
Nº of Alienated Vehicles
(11.1)%
(31.4)%
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Debt
Net Debt (R$ million)
% of Debt Collateralized by Fleet
06.30.2011
Debt Profile in 06.30.2012 - Principal (%)
06.30.2012
Custo Médio Anual da Dívida (Spread CDI +)
(314) bps
Fonte: Unidas
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Rating
Data: 20/09/2012
Rating: ‘brA’ na Escala Nacional Brasil, com Perspectiva Estável
“Os fatores positivos dos ratings são a força da marca Unidas no mercado de aluguel diário de
carros, que cresce ao se associar às marcas Alamo/National por meio de um acordo com a
Enterprise Holdings Inc.; a sua forte posição de mercado com lojas instaladas nos principais
aeroportos e nas praças mais importantes do país; e a sua estrutura de capital conservadora e
liquidez confortável, desde que os fundos de private equity aportaram capital novo na empresa e o
perfil de dívida alongou-se com a emissão de debêntures”
Data: 16/07/2012
Rating: Nacional de Longo Prazo ‘A-(bra)’, com Perspectiva Estável
“Os ratings da Unidas refletem sua robusta estrutura de capital, fruto da capitalização de R$300
milhões ocorrida em julho de 2011, e sua ainda significativa posição no mercado brasileiro de
aluguel de carros e locação de frota”.
Fonte: Unidas
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Fleet
Fleet Trend (thousand of vehicles)
Net CAPEX – Fleet (R$ million)
49
49
+2,374 car (8.3%)
Average Fleet Age (months)
25
50
Nº of Alienated Vehicles
(11.1)%
(31.4)%
21
Consolidated Net Revenue
Net Revenue / Average Total Assets (R$ million)
Consolidated Net Revenue (R$ million)
5.0%
420 bps
(12.9)%
(13.5)%
3.8%
22
EBITDA
EBITDA (R$ million) and EBITDA Margin
EBITDA (R$ million) and EBITDA Margin – Business Division
8.9%
23.3%
26.2%
18.9%
28.1%
40.8%
EBITDA Margin
Fleet Management
Car Rental
Total Rental
2Q11
61.1%
23.6%
45.2%
2Q12
71.2%
30.5%
54.1%
1H11
63.9%
26.9%
48.1%
1H12
71.7%
31.5%
54.4%
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EBITDA
EBITDA (R$ million) and EBITDA Margin
1
EBITDA (R$ million) and EBITDA Margin – Business Division
8,9%
23.3%
26,2%
18.9%
28.1%
EBITDA Margin
Fleet Management
Car Rental
Total Rental
2Q11
61.1%
23.6%
45.2%
2Q12
71.2%
30.5%
54.1%
1H11
63.9%
26.9%
48.1%
1H12
71.7%
31.5%
54.4%
1 - EBITDA margin calculated over the Rental Revenue
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Adjusted EBIT
1
Adjusted EBIT (R$ million) and Adjusted EBIT Margin
EBIT (R$ million) and EBIT Margin – Business Division
61.6%
96.5%
293.3%
201.1%
EBIT Margin
Fleet Management
Car Rental
Total Rental
2Q11
(8.2)%
36.7%
10.8%
2Q12
6.9%
62.5%
30.3%
1H11
(2.7)%
41.6%
16.2%
1H12
6.4%
59.4%
29.2%
1 - EBIT excluding the effect of extraordinary depreciation of BRL31.1 million recorded in 2Q12, due to the reduction of the IPI for new cars announced by the
government on May 21, 2012.
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Adjusted EBIT
1
Adjusted EBIT (R$ million) and Adjusted EBIT Margin
2
EBIT (R$ million) and EBIT Margin – Business Division
61.6%
96.5%
293.3%
201.1%
EBIT Margin
Fleet Management
Car Rental
Total Rental
2Q11
(8.2)%
36.7%
10.8%
2Q12
6.9%
62.5%
30.3%
1H11
(2.7)%
41.6%
16.2%
1H12
6.4%
59.4%
29.2%
1 - EBIT excluding the effect of extraordinary depreciation of BRL31.1 million recorded in 2Q12, due to the reduction of the IPI for new cars announced by the
government on May 21, 2012.
2 - EBIT margin calculated over the Rental Revenue
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Adjusted Net Income (R$ million)
131.5%
1
131.3%
1 – Net Income excluding the effect of extraordinary depreciation of BRL31.1 million recorded in 2Q12, due to the reduction of the IPI for new cars announced
by the government on May 21, 2012.
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Debt
Net Debt / Equity
Covenants
Net Financial Debt / EBITDA <= 3.5
EBITDA / Net Financial Result >= 1.5
Collaterilized Fleet < 30%
Net Debt / Fleet Value
4Q11
1Q12
2Q12 Jul/12
1.8
1.8
1.6
1.7
1.5
1.7
2.2
2.4
6%
5%
5%
5%
Source: Unidas
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Contacts
PEDRO de ALMEIDA
CEO
GISOMAR MARINHO
CFO
HUMBERTO SOARES
IR Manager
Phones: +55 (11) 3155-4818 / 4879
E-mail: [email protected]
Website: www.unidas.com.br
Fonte: Unidas
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The End
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