1Q20 Results Presentation · 4 COVID-19 Impacts Update in April Fleet Management 1Q20 April/20...
Transcript of 1Q20 Results Presentation · 4 COVID-19 Impacts Update in April Fleet Management 1Q20 April/20...
1
1Q20 Results Presentation
Special Fleet Outsourced?Let’s go together!
2
COVID-19 Impacts
New and Used Cars Sales Scenario
Operating Results
Financial Results
Q&A
Agenda
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COVID-19 Impacts
Backlog in 03/31: 6,416 vehicles;
1Q20 Revenue Impact: ~R$10 million.
Occupancy Rate in March pre-COVID-19: 81.2%;
Occupancy Rate in 03/31: ~60%;
Average Ticket: < short term and contracted Km;
1Q20 Revenue Impact: ~R$13 million;
New depreciation per car: R$2.9 thousand / year. No impairment necessity.
Sales: -4 thousand vehicles vs. planned;
Vehicles in stock: 10.0% of fleet vs. 7.6% planned;
Average Price: < due to mix, not because of price discounts;
1Q20 Gross Profit Impact : ~R$19 million.
$
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COVID-19 Impacts Update in April
Fleet Management 1Q20 April/20
Average Operating Fleet 72,990 73,244
Average Rented Fleet 71,350 71,818
Occupancy Rate 97.8% 98.1%
Average Monthly Rate 1,505R$ 1,510R$
Rent a Car (excluding Franchises) 1Q20 April/20
Average Operating Fleet 64,031 65,074
Average Rented Fleet 49,183 36,362
Occupancy Rate 76.8% 55.9%
Average Monthly Rate 70.60R$ 51.10R$
Net Car Capex 1Q20 April/20
Cars Purchased 21,570 632
Cars Sold 16,462 1,594
Net Capex 5,108 (962)
Stores 05/20/2020 Total Opened Closed
Rent a Car 229 197 32
Used Cars 115 106 9
5
COVID-19 Impacts
New and Used Cars Sales Scenario
Operating Results
Financial Results
Q&A
Agenda
6
16,710
41,73648,394
64,564
14,111 16,462
0.33%1.74% 2.02% 2.86% 2.53% 3.17%
-20,00%
-15,00%
-10,00%
-5,00%
0,00%
5,00%
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
2017 2018 2018 Combined 2019 1Q19 1Q20
# of Cars Sold Unidas' Market Share (Up to 3 year old cars sales market)
5.1
2.4 2.3 0.6 0.5
4.5
5.8 5.7
1.3 1.2
1.92.8 3.1
0.7 0.7
2.7 3.3 3.5
0.8 0.8
14.2 14.3 14.6
3.3 3.1
2017 2018 2019 1Q19 1Q20
Up to 3 years From 4 to 8 years From 9 to 12 years More than 12 years
3.332.48 1.99 2.17 2.47 2.66
0.58 0.53
10.08 10.01 10.0310.76 10.79 11.03
2.49 2.36
3.0x
4.0x
5.0x 5.0x4.4x
4.1x 4.3x 4.4x
-3,0x
-2,0x
-1,0x
0,0x
1,0x
2,0x
3,0x
4,0x
5,0x
6,0x
0,00
2,00
4,00
6,00
8,00
10,00
12,00
14,00
16,00
18,00
20,00
2014 2015 2016 2017 2018 2019 1Q19 1Q20
# of New Cars Sales # of Used Cars Sales Used Cars Sales/New Cars Sales
New and Used Car Sales Scenario
New and Used Car Sales in Brazil¹
Used Cars by Age in Brazil¹ Unidas’ Sales (#) and Market Share (%)³
¹ Source: FENAUTO, FENABRAVE considers Vehicles, Light Commercials and also sales of heavy commercials and motorcyles.
² For the changes calculation, are being considered numbers without rounding according to FENABRAVE and FENAUTO reports of each period.
(Milhões de unidades)
(Cars and light commercials – Million of units)
+7.6%²
+2.2%²
(8.2)%²
(5.5)%²
+16.7%
+33.4%
(5.9)%²
(5.4)%²
+2.1%
(6.9)%²
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COVID-19 Impacts
New and Used Cars Sales Scenario
Operating Results
Financial Results
Q&A
Agenda
8
74,704 85,027 78,963 84,334
52,271
75,23059,523
80,8154,124
4,331
3,809
4,000
30,424 31,184 27,732
46,566
131,099
164,588
142,295
169,149
2014 2015 2016 2017 2018 2019 1Q19 1Q20
Fleet Management Rent a Car Rent a Car Franchises
Fleet
Fleet Composition (# of vehicles)
+18.9%
Fleet in Demobilization (% and # of vehicles - thousand)
3.7 2.81.5 2.0
10.0
14.0 13.7
16.8
12.3% 9.0% 5.5% 4.2% 7.7% 8.6% 9.6% 10.0%
-100%
-80%
-60%
-40%
-20%
00%
-
5,00
10,00
15,00
20,00
25,00
2014 2015 2016 2017 2018 2019 1Q19 1Q20
Used Cars Sales Inventory % of Inventory/Total Fleet
+40.0%
+0.4 p.p.
+23.1%
9
14,177 13,0689,122
19,747
68,70272,849
97,948
25,86721,570
11,565 12,729 12,40216,710
42,38648,394
64,564
14,111 16,462
2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20
Cars Purchased Cars Sold
2,612 339 (3,280)3,037
24,45526,316
5,10811,756
4,455
33,384
NTC Serviços Ltda. Acquisition
4,455
Investment in Fleet
Net Fleet Investment (R$ million)
Net Fleet Investment (# of vehicles)
517.9 509.9 329.0
859.4
2,944.83,151.9
4,562.2
1,041.3 1,069.9
255.4 316.3 352.3525.2
1,408.81,621.2
2,518.5
523.4 615.2
2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20
Cars Acquisition Car Sales Revenues
262.5 (23.3)
334.2193.6
454.7
1,536.01,530.7
517.9
2,043.7
NTC Serviços Ltda. Acquisition
90.0
90.0
(12.2)%
+33.5%
(56.5)%
+36.5%
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Fleet Management (1/3)
567
Special Vehicles Addressable Market in Brazil (vehicles, thousand)
Growth guarantee for 2020;
High potential for synergies
Specialized segment;
Mercado endereçável 567 mil veículos
Frota 2,6 mil veículos
Presença 8 estados
Receita R$102,8 milhões
EBITDA R$40,1 milhões
Lucro Líquido R$7,7 milhões
Dívida Líquida R$103,7 milhões
Zetta Frotas
2.6
Presence 8 states
Revenue R$102.8 million
EBITDA R$40.1 million
Net Income R$7.7 million
Net Debt R$103.7 million
11
373.8 392.0 402.4
522.9
930.61,017.1
1,214.5
281.3 292.4
2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20
8,232 8,057 8,33511,179
20,64722,624
25,374
6,069 6,421
1,502 1,609 1,597 1,546 1,489 1,483 1,597 1,538 1,505
-2.000
-1.500
-1.000
-500
0
500
1.000
1.500
-3.000
2.000
7.000
12.000
17.000
22.000
27.000
32.000
37.000
42.000
2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20
# of Daily Rentals (thousand) Average Monthly Rate (R$)
Fleet Management (2/3)
Number of Daily Rentals (thousand) and Average Monthly Rate (R$)
Net Revenue from Fleet Management (R$ Million)
(2.1)%+7.7%
+5.8%
+12.2%
CAGR (2014-2019) +26.6%+19.4%
+3.9%
CAGR (2014-2019) +25.2%
12
94.8%
96.2%96.8% 97.0%
98.2% 98.4%97.7% 98.0% 97.8%
2014 2015 2016 2017 2018 2018Combined
2019 1Q19 1Q20
8,140 7,950
4,629
7,032
12,759
17,098
2,880
5,954
335.0 314.0195.1
309.6
575.0709.0
140.2
306.0
-1.000
-800
-600
-400
-200
00
200
400
600
800
0
5.000
10.000
15.000
20.000
25.000
2014 2015 2016 2017 2018 2019 1Q19 1Q20
# of Vehicles Global Value (R$ million)
22.4
29.334.5
38.7 39.5
45.2 45.4 45.2 45.7 45.1
1T18 2T18 3T18 4T18 1T19 2T19 3T19 4T19 1T20 2T20
Fleet Management (3/3)
Commercial Pipeline
New Contracts: Future Revenue Generation for the Fleet Management Segment
Occupancy Rate
(Rented Fleet as % of Operating Fleet)
Var. (2014-2019) +2.9 p.p.
# Vehicles in Dispute (thousand)
Consecutive quarterly record of New Contracts, both in vehicles hired and in Global Value. Future revenues to be benefited also by Zetta acquisition and by the new contracts signed in 2020 already in partnership with Unidas’ commercial force.
(0.3)%
+34.0%
106.7%
+23.3%
+118.2%
(0.2) p.p.(0.7) p.p.
Revenue for the next quarters
292.4
1T20
Receita Líquida
2019 Results
Revenue: R$103 million
Fleet: 2.6 thousand vehicles
New Contracts: 2020TD
Global Value: R$358 million
Fleet: 1.9 thousand vehicles
2Q201Q203Q193Q182Q18 4Q192Q191Q194Q181Q18
1Q20
Net Revenue
13
11,565 12,729 12,40216,710
41,73648,394
64,564
14,111 16,462
22.124.8
28.4
31.433.5 33.5
39.037.1 37.4
2014 2015 2016 2017 2018 2018 Combinado 2019 1T19 1T20
255.4 316.3 352.3525.4
1,411.31,621.2
2,518.5
524.1 615.2
0,0
500,0
1000,0
1500,0
2000,0
2500,0
3000,0
3500,0
2014 2015 2016 2017 2018 2018 Combinado 2019 1T19 1T20
Used Cars (1/2)
+17.4%
Revenue from Used Cars Sales (R$ Million)
+55.3%
+33.4%
+16.7%
Number of Cars Sold and Average Selling Price (R$ Thousand/Car)
+16.4% +0.7%
2018 Combined 1Q19 1Q20
2018 Combined 1Q19 1Q20
14
6 7 11
23
58
83
67
84
21
18
20
18
7 63
4
6
4
6
13
13 1314
27
85
112
93
115
-
20,0
40,0
60,0
80,0
100 ,0
120 ,0
2014 2015 2016 2017 2018 2019 1Q19 1Q20
Retail - Own Stores Retail - Franchises Wholesale
Used Cars (2/2)
Number of Stores
+ 99 stores2014 vs. 2019
+ 27 stores
+22 stores
+25.4%
(10.0)%
+116.7%
YoY %
15
74.3
70.9
74.0
70.369.2
70.5 70.6
2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20
78.8% 78.0%
81.6%
75.5% 75.7%
79.4%76.8%
2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20
3,509 3,9734,797
6,486
8,554
14,199
3,1564,474
2014 2015 2016 2017 2018 2019 1Q19 1Q20
Record of daily rentals volume even with COVID-19 impacts.
Rent a Car (1/2)
Number of Daily Rentals (Excluding Franchises, thousand)
+66.0%
+41.8%
Record
Average Daily Rate (R$)
Var. 1Q20 vs. 1Q19: (4.6)%(4,6)%
Occupancy Rate
(Rented Fleet as % of Operating Fleet)
Var. 1Q20 vs. 1Q19: (4.8) p.p.(0.8) p.p.
16
273.0 289.5324.5
424.4
578.7
913.1
214.1289.8
2014 2015 2016 2017 2018 2019 1Q19 1Q20
Rent a Car (2/2)
Historic record of net revenue even with COVID-19 impacts. Stores expansion plan started but paralyzed due to COVID-19.
Net Revenue From Rent a Car (Excluding Franchises, R$ million)
+35.4%
+57.8%
Record
Number of Stores
+19 stores
+24 stores
84 94 99 104 121 132 127151
78102
128 112 89 76 8378162
196
227216 210 208 210
229
2014 2015 2016 2017 2018 2019 1Q19 1Q20
Own Stores Franchises
17
COVID-19 Impacts
New and Used Cars Sales Scenario
Operating Results
Financial Results
Q&A
Agenda
18
-25.8 -17.8 -11.811.9 42.1 67.8 32.5 7.7
-3.8
222.6 240.5 260.6
331.0
603.5664.7 787.5
181.7188.7
187.7
284.7
445.5
100.7 128.5196.8 222.7 248.8
345.0
833.3
1,017.2
1,265.5
290.1313.4
52.6%56.8%
61.8% 66.0%59.4% 62.4%
58.6% 57.5%52.5%
-100%
-80%
-60%
-40%
-20%
00%
20%
40%
60%
-100,00
100,00
300,00
500,00
700,00
900,00
1100,00
1300,00
1500,00
1700,00
2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20
Used Cars Fleet Management Rent-a-Car + Franchises Recurring Rental Margin
Recurring EBITDA
Recurring EBITDA and EBITDA Margin¹ (R$ Million and %)
(1) Margins calculated over Rental Net Revenue.(2) Margins calculated over Used Cars Net Revenue.
+24.4%
+8.0%
(150.2)%
+3.7%
+27.6%
%YoY1Q19
Recurring EBITDA 2014 2015 2016 2017 20182018
Combined2019 Var. 1Q19 1Q20 Var.
Fleet Management¹ 59.6% 61.4% 64.8% 63.7% 64.8% 65.4% 64.8% (0.5) p.p. 64.6% 64.5% (0.1) p.p.
Rent-a-Car + Franchises¹ - - - - 39.8% 46.3% 47.2% 0.8 p.p. 45.2% 42.2% (3.0) p.p.
Rental¹ 59.6% 61.4% 64.8% 63.7% 56.4% 58.2% 57.1% (1.1) p.p. 56.0% 53.1% (2.9) p.p.
Used Cars Sales² (10.1)% (5.6)% (3.3)% 2.3% 3.0% 4.2% 1.3% (2.9) p.p. 1.5% (0.6)% (2.1) p.p.
= Consolidated EBITDA¹ 52.6% 56.8% 61.8% 66.0% 59.4% 62.4% 58.6% (3.7) p.p. 57.5% 52.5% (5.1) p.p.
19
Recurring EBIT
Recurring EBIT and EBIT Margin¹ (R$ Million and %)
(1) Margins calculated over Net Rental Revenue.
112.7 124.3 150.3216.8
553.0
644.4
797.2
186.4 170.9
30.1% 31.7%37.4%
41.5% 39.4% 39.5% 36.9% 37.0%
28.6%
-100%
-80%
-60%
-40%
-20%
00%
20%
40%
-
200,00
400,00
600,00
800,00
1000,00
1200,00
2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20
Consolidated Recurring EBIT Recurring Rental Margin
(8.4)%
+23.7%
EBIT Recorrente 2014 2015 2016 2017 20182018
Combinado2019 Var. 1T19 1T20 Var.
Terceirização de Frotas¹ 30.1% 31.7% 37.4% 41.5% 43.9% 44.4% 41.8% (2.7) p.p. 41.0% 38.5% (2.5) p.p.
Aluguel de Carros + Franquias¹ - - - - 30.7% 31.3% 30.7% (0.6) p.p. 31.9% 19.1% (12.8) p.p.
= Margem EBIT Consolidada¹ 30.1% 31.7% 37.4% 41.5% 39.4% 39.5% 36.9% (2.5) p.p. 37.0% 28.6% (8.4) p.p.
20
67,7
203,4233,6
348,8
82,5 79,6
12.9% 14.5% 14.3% 16.2% 16.4%13.3%
-60%
-50%
-40%
-30%
-20%
-10%
00%
10%
00
100
200
300
400
500
2017 2018 2018 Combined 2019 1Q19 1Q20
Recurring Net Income Recurring Net Margin
Net Income and Non-Recurring Effects¹
Recurring Financial Result
Recurring Net Income
R$ Million As % of Rental Revenue
R$ Million As % of Rental Revenue
+49.3%
(3.5)%+200.4%
125.1
290.7
335.2 350.2
84.3 70.2
23.9%20.7% 20.5%
16.2% 16.7%11.8%
-40%
-30%
-20%
-10%
00%
10%
20%
30%
00
100
200
300
400
500
2017 2018 2018 Combined 2019 1Q19 1Q20
+132.4%
+4.5 %
(16.8)%
21
Financial Results
Spread
The annualized ROIC is calculate using Recurring EBIT less recurring effective tax rate (NOPAT), divided by PP&E and the stock of cars for renewing the fleet, less Receivables from customers in current and non-currentassets and trade accounts payable (Invested Capital).
Expansion of the ROIC / Debt Cost ratio even with COVID-19 impacts: Strong debt cost reduction in the last two years.
10.7%10.3%
12.3%12.7%
12.0%11.3%
12.1%
8.4%
8.6%
9.9%
10.8% 8.8%
5.9%
5.0%5.4%
3.3%
2014 2015 2016 2017 Combined 2018 Combined 2019 1Q19 1Q20
ROIC Cost of Debt Net of Taxes
2.1 p.p. 0.4 p.p. 1.5 p.p. 3.8 p.p.
Spread
6.2 p.p. 6.3 p.p. 5.1 p.p.
1.2x1.0x 1.1x
1.4x
2.0x2.3x 2.3x
2.5x
ROIC / Cost of Debt
6.7 p.p.
22
37,9%
49,1% 51,8%
0,0 %
10, 0%
20, 0%
30, 0%
40, 0%
50, 0%
60, 0%
2019 1Q19 1Q20
2.02x 2.08x 2.36x3.02x
2018 2019 1Q19 1Q20
84.4%
2.4%
2.6%
10.6%
Debentures
Promissory Notes
Leasing
Agrobusiness Certificate
Foreign Loan
1.2 0.9
0.3
0.3
1.5
0.0
0.7
1.2 1.2
1.1
0.5
0.2 0.1
0.1 0.1
Caixa 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Capital Structure
Covenants
Amortization Schedule of Debt Principal on 03/31/2020 Proforma (R$ billion)
Cash balance of R$1.5 billion. Amount equivalent to 74.4% of debt until 2022..
Net Debt/Recurring EBITDA Annualized
Debt Composition (Principal)
Principal Amount:R$4.9 bi
Net Debt/ Fleet Value
0.6x
0.66x
+2.7 p.p.
*
* Amounts with no relevant percentuals
Cash equivalente to 74.4% ofdebt until 2022
Q&A
Legal Notice – The statements contained in this document relating to business prospects, operating and financial results projections and those relating to Unidas growth prospects are merely projectionsand as such are based exclusively on the Board's expectations of the future of the business. These expectations depend substantially on market conditions, the performance of the Brazilian economy, thesector and the international markets and, therefore, subject to change without prior notice.
ri.unidas.com.br
Contact: [email protected]