1q10 final
TRANSCRIPT
1
Localiza Rent a Car S.A.1Q10 Results - R$ millions, USGAAP
April 14th, 2010
2
1Q10 Highlights
Localiza is back to high levels of growth.
61.6%48.830.2Net income
1.9p.p.8.7%6.8%Net margin
14.5%132.1115.4EBITDA
26.4%563.9446.1Net revenue
Variation1Q101Q09R$ millions
15,79170,60854,817End of period fleet
3,12010,9487,828Sold cars
11,09911,486387Purchased cars
Variation1Q101Q09Quantity
3
Car Rental Division
181.4151.1
607.8585.7
442.7357.2
271.3
2005 2006 2007 2008 2009 1Q09 1Q10
Net revenue (R$ million)
CAGR: 29.2%3.8%
The 21.4% growth in rentals was partially offset by the drop of 1.1% in the average rental rate, due to the option of insurance contracting.
20.1%
3,4114,668
5,793
7,940 8,062
1,952 2,369
2005 2006 2007 2008 2009 1Q09 1Q10
CAGR: 32.5% 1.5%
21.4%
# daily rentals (thousand)
4
jan feb mar apr may jun jul aug sep oct nov dec
2005 2006 2007 2008 2009 2010
In the 1Q10, daily rentals grew 21.4%.
# daily rentals
# daily rentals (thousand)
711.2591.6 649.2
835.4 722.1 811.3
Jan Feb Mar
2009 2010
17.5%25.0%
22.1%
Car Rental Division
5
68.6%76.2%
66.2%67.6% 64.5%
0.02.4
16.1 15.3
9.7
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 %
1Q09 2Q09 3Q09 4Q09 1Q10
Utilization rate x purchases
With the reduction of the purchase levels in the 1Q10, utilization rate grew.
Utilization rate # of purchased cars (thousand)
Car Rental Division
6
3,3514,188
5,144
6,4377,099
1,780 1,890
2005 2006 2007 2008 2009 1Q09 1Q10
Fleet Rental Division
CAGR: 24.3%
# daily rentals (thousand)
6.2%
149.2190.2
228.2
276.9313.4
75.9 84.4
2005 2006 2007 2008 2009 1Q09 1Q10
CAGR: 22.9%
Net revenue (R$ million)
11.2%
13.2%
10.3%
Revenues grew above volume, due to an increase of 4,9% in the average rental rate.
7
Used car sales
Sale’s volumes are back to pre-crisis levels.
18,76323,174
30,09334,281 34,519
7,82810,948
2005 2006 2007 2008 2009 1Q09 1Q10
CAGR: 22.3%
39.9%
0.7%
# of sold cars
# of sold cars
2,521 2,4712,836
3,5773,158
4,213
Jan Feb Mar
2009 2010
41.9%
27.8% 48.6%
8
The average age of the operating fleet is returning to pre-crisis levels.
6.3
9.5
6.9
2008 2009 1Q10
Average age of operational fleet (month)
12.3
16.618.7
2008 2009 1Q10
Average age of sold cars (month)
Car Rental Division
9
Consolidated net revenuesR$ million
Consolidated net revenues grew 26.4% in the 1Q10.
876.9
1,145.4
1,531.7
1,855.7 1,856.3
446.1563.9
2005 2006 2007 2008 2009 1Q09 1Q10
CAGR: 28.4%
26.4%
10
277.9 311.3
403.5
504.1 469.7
115.4 132.1
2005 2006 2007 2008 2009 1Q09 1Q10
- 6.8%
Consolidated EBITDA marginR$ million
5.5%
51.5%
67.0%
44.3%
2008
48.3%49.0%49.3%52.6%51.2%51.0%Rental consolidated
0.8%
64.5%
40.6%
1Q10
1.4%
65.2%
40.8%
1Q09
1.1%
66.5%
40.3%
2009
4.6%
69.1%
42.0%
2006
5.4%
68.7%
44.5%
2007
13.2%Used car sales
62.3%Fleet rental
45.3%Car rental
2005Divisions
CAGR: 22.0%
EBITDA margins remained stable.
14.5%
11
Depreciation per carR$
1,318.0
332.9
2,546.0 2,577.0
939.1492.3
2005 2006 2007 2008 2009 1Q10
Car Rental Division
Average depreciation per car fell again in the 1Q10.
3,254.42,981.3
2,383.3
4,371.75,083.1
2,395.8
2005 2006 2007 2008 2009 1Q10
Fleet Rental Division
12
Net incomeR$ million
48.830.2
106.5138.2
190.2
127.4 116.3
2005 2006 2007 2008 2009 1Q09 1Q10
61.6%
Net income grew 61.6% in the 1Q10.
18.6
(8.1)
10.6
0.2
(0.8)
16.7
(0.6)
17.3
Var. R$
127.4
(46.6)
(133.3)
(18.3)
(178.5)
504.1
54.5
449.6
2008
116.3
(47.2)
(112.9)
(21.0)
(172.3)
469.7
10.6
459.1
2009
(11.1)
(0.6)
20.4
(2.7)
6.2
(34.4)
(43.9)
9.5
Var. R$
132.1115.4EBITDA Consolidated
48.830.2Net income
(19.3)(11.2)Income tax and social contribution
(28.2)(38.8)Financial expenses, net
(5.1)(5.3)Other depreciation
(30.7)(29.9)Depreciation of revenue-earning vehicles
2.53.1EBITDA - Used car sales
129.6112.3EBITDA - Car rental and fleet rental
1Q101Q09Reconciliation of EBITDA x Net Income
13
Free cash flow - FCF
(161.3)
(25.5)
(194.0)
58.2
(28.0)
(47.8)
-
(496.0)
448.2
134.0
(24.2)
(32.7)
190.9
361.2
(448.2)
277.9
2005
53.2
222.0
(287.0)
118.2
(32.7)
(53.0)
-
(643.3)
590.3
203.9
(4.8)
(42.7)
251.4
530.4
(590.3)
311.3
2006
(22.2)
(51.0)
(221.9)
250.7
(23.7)
14.2
-
(839.0)
853.2
260.2
13.3
(63.4)
310.3
760.0
(853.2)
403.5
2007
295.4
241.1
(241.1)
295.4
(21.0)
(23.4)
15.2
(963.1)
924.5
339.8
(11.5)
(49.0)
400.3
855.1
(924.5)
469.7
2009
(15.2)-Change in amounts payable to car suppliers (capex)
50.2
(8.7)
(14.6)
73.5
(7.7)
(16.9)
(297.1)
295.4
98.1
1.7
(15.6)
112.0
275.3
(295.4)
132.1
1Q10
(283.1)
(188.9)
(299.9)
205.7
(39.9)
(52.2)
(1,035.4)
983.2
297.8
(44.8)
(52.8)
395.4
874.5
(983.2)
504.1
2008
Free cash flow
Change in amounts payable to car suppliers (capex)
Capex of car – growth
Free cash flow before growth
Capex - Property and equipment, net
Net capex for renewal
Capex of car – renewal
Used car sales revenues
Cash provided before capex
Working capital variation
(-) Income tax and social contribution – current
EBITDA without used car sales revenues and costs
Cost of used car sales
Used car sales revenues
EBITDA
Free cash flow - R$ million
The Company generated R$50.2 million of free cash flow in the 1Q10, even with a small increase in the fleet.
14
Net debt reconciliationR$ million
Net debt was reduced by R$16.5 million.
-1,078.6 -1,062.1
(24.8)
Interest and
others
(8.9)
Interest on own capital
Net debt12/31/2009
Net debt 03/31/2010
Free cash flow
50.2
15
Debt – profile and costsR$ million
Debt profile was extended.
(250.8)-----(250.8)Cash and cash equivalents
991.7160.0 211.8 239.6 225.0 205.4 (50.1)-Total net debt - principal
1,242.5 160.0 211.8 239.6 225.0 205.4 200.7 -Total gross debt - principal
2.0---0.4 0.9 0.7 TJLP + 3.80%paBNDES
400.0 100.0 100.0 100.0 100.0 --CDI +2.02%paDebentures - 1st Issuance, Total Fleet
200.0 -----200.0 108.9% of CDICommercial Papers
200.0 -66.8 66.6 66.6 --CDI + 0.59%paDebentures - 2nd Issuance
440.5 60.0 45.0 73.0 58.0 204.5 -CDI + 1.25%paWorking Capital
Total201520142013201220112010Average effective costGross debt - principal
*Stand by refers to R$100 MM limit with BNDES, with term of drawing until sept/2010
Debt profile (principal) on 03/31/10
200.7 205.4 225.0 239.6211.8
160.0
250.8Cash
2010 2011 2012 2013 2014 2015
Stand by*
16
Debt – ratios
R$ million
Indebtedness ratios improved and remain comfortable.
535.8 440.4765.1
1,254.51,078.6 1,062.1
900.2
1,247.71,492.9
1,752.61,907.8 1,907.7
2005 2006 2007 2008 2009 1Q10
Net debt Fleet value
2.0x
1.8x
2.5x
72%
2008
1.5x
1.7x
2.3x
57%
2009
1.4x1.3x0.7x1.4xNet debt / Equity (USGAAP)
1.3x*1.3x1.0x1.5xNet debt / EBITDA (BRGAAP)
2.0x*1.9x1.4x1.9xNet debt / EBITDA (USGAAP)
56%51%36%60%Net debt / Fleet value (USGAAP)
1Q10200720062005BALANCE AT THE END OF THE PERIOD
* annualized
17
Thank you!