4Q17 Results Presentation. February, 2018

Transcription

1 4Q17 Results Presentation February,

2 Important Notice Some of the statements contained herein are based on our management s current assumptions and estimates, which may result in material differences regarding future results, performance and events. These forward-looking statements include future results, which may be influenced by past results and investments. Actual results, performance and events may differ substantially from those expressed or implied in these forward-looking statements due to a variety of factors, such as general economic conditions in Brazil and other countries; interest and exchange rate levels, future renegotiations or prepayment of obligations or credits denominated in foreign currency, legal and regulatory changes and general competitive factors (whether global, regional, or domestic). 2

3 Agenda 1 Recent Events 2 4Q17 Results 3 Q&A Session 3

4 Highlights CVC Corp Bookings of CVC Corp increased by 12.4% in 4Q17, with double digit growth in all quarters of 2017 Business units CVC ended 2017 growing 13.1% in bookings, SSS of +11.5% and 109 stores opened (95 net opening) 11.9% 13.8% 15.7% 12.4% 13.5% RA grew 16% in 2017, totaling R$ 3.3 billion in bookings CVC reformulated SV team under Maurizio s leadership, stabilized the platform and ended 2017 with improved product mix and strong growth in bookings 1Q17 2Q17 3Q17 4Q The increase in 4Q17 was driven by a good performance in the leisure segment (+9%), corporate segment (+17%) and SV (>30%) All channels showed double digit growth in the 4Q, highlighting the online channel that grew above 20% In December, CVC concluded Trend s acquisition and already started to capture the synergies, including Visual Experimento ended 2017 with booking s growth of more than 20%, with a strong capture of synergies and EBITDA growth of more than 50% In October, for the 8th consecutive year, CVC won the Marcas de Confiança (Trustworthy Brands) award, by the Revista Seleções and Datafolha magazine In November, the Prêmio Folha Top of Mind 2017 award was given to CVC for the 7th consecutive year. Also in November, CVC was again ranked among the 25 Most Valuable Brazilian Brands by the international brand consultancy firm Interbrand In January CVC implemented a new matrix structure and defined the corporate mission and values 4

5 New organization structure CEO CVC Corp Business Units BU CVC BU ONLINE BU TREND BU RA BU EXPERIMENTO BU VISUAL AIRLINE PRODUCT DOMESTIC PRODUCT INTERNATIONAL PRODUCT Support areas to sale FINANCE (CFO) PEOPLE & MANAGEMENT DIGITAL MKT (CMDO) TECHNOLOGY (CIO) OPERATIONS & CSC 5

6 CVC Mission To perform the best travel experience in all moments of people s lives 6

7 Corporate Values Customer We have the passion to serve Transparency We practice open, cordial and direct communication People We value people and encourage constructive relations between them Meritocracy We value those who deliver result in our way of doing things Results We are passionate for sales with results. Those who do not work in sales, work for sales Innovation We are a bold, agile and innovative team, aiming to always take the lead 7

8 CVC Corp Result CVC Corp showed growth in the main metrics of 4Q17 and 2017 Bookings 17.0% Net Revenue 11.4% 13.5% 7.2% 8,755 9,030 10,246 1,064 1,105 1, % 6.8% 2,462 2, Q16 Pro forma 4Q Pro forma 2017 Adjusted EBITDA 4Q16 Pro forma 4Q Pro forma 2017 Adjusted Net Profit 15.8% 26.1% 12.9% 20.6% % 25.7% Q16 Pro forma 4Q Pro forma Q16 Pro forma 4Q Pro forma

9 Agenda 1 Recent Events 2 4Q17 Results 3 Q&A Session 9

10 Bookings by segment Growth in all segments, highlighting the corporate segment recover Growth by segment (vs 2016) CVC Corp 13.5% 10, % 9, % 17.0% 15.8% 12.4% 8.8% 7.4% 2,462 2,768 Leisure Corporate Others 4Q16 Pro forma 4Q Pro forma Q Bookings of the leisure segment posted growth of 8.8% (CVC leisure grew by 10.0%) versus 4Q16 Pro forma and 12.8% compared to 2016 Pro forma. This increase was mainly due to the strong growth in the international and cruises segments, especially the sale of European Circuits Bookings of the corporate segment increased by 17.0% in 4Q17 and 15.8% in 2017, compared to the 4Q16 and the 2016 Pro forma results, respectively Bookings of CVC Corp reached R$2,768.3 MM in 4Q17 and R$10,245.9 MM in 2017, representing growth of 12.4% versus 4Q16 Pro forma and 13.5% when compared to 2016 Pro forma RexturAdvance s bookings increase and Submarino Viagens performance improvement also supported company s growth 10

11 Bookings per channel Double digit growth in all channels and more than 20% on online bookings Growth per channel (vs 2016) Same Store Sales (SSS) 13.3% 13.4% 11.1% 14.8% 13.9% 13.1% 20.5% 10.5% 9.2% 11.5% -0.7% Exclusive Stores Independent Agents Online Bookings 1Q17 2Q17 3Q17 4Q Q Double digit growth in the exclusive stores and independent agents, 11.1% and 13.1%, respectively Good performance in all 2017 s quarters, reaching 11.5% growth in the year The online channel increased 20.5% in 4Q17. Submarino Viagens presented a strong growth in the period, while CVC.com still showed a decrease due to the implementation of the new platform 11

12 Net Revenue Margin mainly impacted by the international segment growth Net revenue based on Boardings ¹ Net Revenue of CVC Corp % 956 1, % 1, % 6.8% Margin 15.2% 14.7% 15.9% 15.3% Margin 12.6% 11.9% 12.6% 12.0% 4Q16 Pro forma 4Q Pro forma 2017 Net Revenue base on Bookings ² 4Q16 Pro Forma 4Q Pro Forma % 229 Company s net revenues totaled R$338.8 MM in 4Q17 and R$1,185.1 MM in 2017, representing growth of 6.8% and 7.2% when compared to 4Q16 and 2016 Pro forma, respectively Margin 6.3% % 6.0% 6.8% 6.2% The percentage of net revenues over bookings was 11.9% in 4Q17 and 12.0% in 2017, lower by 0.7 p.p. and 0.6 p.p. compared to the previous year, respectively, basically due to a greater mix of the international segment, which presented a strong improvement in 2017, with lower percentage margin compared to the domestic segment 4Q16 Pro Forma 4Q Pro Forma 2017 (1) Based on Boardings: CVC, Experimento, Trend and Visual (2) Based on Bookings: RexturAdvance and Submarino Viagens 12

13 Operating Expenses Growth of only 2.6% in 2017 due to the synergies captures Recurring Operating Expenses Breakdown % 655 CVC Corp R$ mm 4Q17 vs 4Q16 Pro forma 2017 vs 2016 Pro Forma 5.7% Operating Expenses % % (-) Non-Recurring Items¹ % % Recurring Operating Expenses % % Selling % % General and administrative % % Depreciation and Amortization % % Other operating expenses % % PPA Amortization % % 4Q16 Pro forma 4Q Pro forma 2017 Recurring operating expenses grew 5.7% in 4Q17, mainly due to the increase in marketing expense, given the company s bookings growth of more than 12% General and administrative expenses in 4Q17 dropped by 2.8% due to the synergies captured In 2017, recurring operating expenses grew only 2.6% when compared to 2016 Pro Forma Non-recurring expenses in 4Q17 increased by 26.2% versus 4Q16, due to the new incentive plan (LIP CEO and CFO and Retention Bonus for the Commercial VP) 13

14 EBITDA Adjusted EBITDA growth of 10.9% in 4Q17 Adjusted EBITDA ¹ Adjusted EBITDA Reconciliation ¹ 12.9% CVC Corp R$ mm 4Q17 vs 4Q16 Pro forma vs 4Q vs 2016 Pro Forma vs % EBITDA % 13.5% % 12.2% (+) Extraordinary Remuneration ² % 32.6% % 161.7% Adjusted EBITDA % 14.5% % 15.8% Margin ³ 50.5% 1.9 p.p p.p. 50.1% 2.5 p.p. 1.9 p.p. Margin 48.6% 50.5% 47.6% 50.1% 4Q16 Pro forma 4Q Pro forma 2017 As a result of the items mentioned before, company s Adjusted EBITDA was R$171.0 MM in 4Q17 and R$593.6 MM in 2017, representing growth of 10.9% and 12.9% versus 4Q16 and 2016 Pro forma results The EBITDA margin increased by 1.9 p.p. in 4Q17, reaching 50.5% (1) EBITDA 2016 adjusted by the new criteria of non recurring expenses (2) Value that exceeds the value proposed by Mercer (3) EBITDA Adjusted as % of net revenues 14

15 Net Income Growth of 25.7% in 4Q17 driven by operating results and lower financial expenses Adjusted Net Income ¹ Adjusted Net Income Reconciliation ¹ % 251 4Q17 vs 4Q16 Pro forma vs 4Q vs 2016 Pro Forma vs 2016 Net income % 30.6% % 20.4% (-) Minority Stake (0.2) 84.9% % % -97.2% 25.7% Net income to shareholders % 41.6% % 26.0% Margin % 25.5% 18.8% 21.1% (+) Extraordinary Remuneration ² % -19.4% % 91.5% (+) Franchisee agremement amortization % -27.6% % -24.6% (+) Rio Operation % -92.8% % -53.5% Adjusted Net Income % 27.0% % 26.1% Adjusted Net Income Margin 25.5% 3.8 p.p. 2.2 p.p. 21.1% 2.3 p.p. 2.5 p.p. 4Q16 Pro forma 4Q Pro forma 2017 The Adjusted Net Profit of CVC Corp was R$86.4 MM in 4Q17 and R$250.6 MM in 2017, representing growth of 25.7% and 20.6% versus 4Q16 and 2016 Pro forma, respectively The growth of the Adjusted Net Profit in 4Q17 was due to the 10.9% increase in EBITDA and the reduction in financial expenses (1) Net Profit Adjusted 2016 considers the new non-recurring expenses criteria (2) Value that exceeds the value proposed by Mercer, net of taxes 15

16 Cash Flow Operating Cash Generation of R$173 MM in the year Operating Cash Flow Operating Cash Flow Reconciliation 220 4Q16 4Q Q16 4Q Net Income Deferred tax (8.1) (24.1) 16.7 (20.9) Interests Depreciation & amortization Others Adjustments NI Adjusted by cash itens Change in Working Capital (54.8) (99.8) (135.3) (188.7) Capex (9.7) (15.6) (55.4) (60.3) Other Operational Cash Flow In 4Q17, CVC Corp had an operating cash generation of R$3.0 MM The lower cash generation in the quarter was basically due to a higher IOC payment (+R$19 MM vs 2016) and a judicial deposit related to the stock options plan (R$ 20 MM). CVC Corp filed a lawsuit to support the mercantile nature of the stock options plan and made the deposit to protect itself from fines of an eventual legal notice In 2017, operating cash generation, net of investments, was R$172.6 MM 16

17 Working Capital and ROIC Company s ROIC remained above 30% Change in Working Capital ROIC 4Q17 4Q % 32.3% Accounts receivable (6.0) (45.9) (263.3) (234.2) Advance to suppliers (6.9) (39.1) (17.2) (38.5) Advanced of travel agreements (75.2) (106.9) Suppliers (28.2) 59.6 (59.3) (36.5) Prepaid expenses (22.1) Other (net) (18.1) 35.3 (23.8) 34.3 Change in Working Capital (99.8) (54.8) (188.7) (135.3) 24.6% 27.5% LTM Mar 17 LTM Jun 17 LTM Sep 17 LTM Dec 17 ¹ The account Other was impacted by the higher IOC payment (+R$19 MM) and the judicial deposit related to the stock options plan (R$ 20 MM) as commented on the previous slide The return on invested capital was 32.3% in the last twelve months ending December 31st, 2017 (1) Considers LTM Ebit from Trend and Visual 17

18 Indebtedness Reduction of 16% on Net Financial Expenses Net Debt Net Debt Accounts Payable - Acquisition ¹ Discount Receivables Net Financial Expenses Financial Expenses (net) Bank Fee Slips + Fx. variation , % -44% Q16 4Q17 4Q17 ² Leverage: 1.21x 1.76x 1.50x 4Q16 4Q17 Net debt was R$1,128 MM on December 31, 2017 and R$598 MM on December 31, 2016, representing respectively 1.76x and 1.21x EBITDA accumulated in the last 12 months ended in 2017 and 2016 Net financial expenses (ex bank fee slips and fx variation) fell by 44.1%, due to the drop in the CDI rate, debt amortization related to acquisitions, reduction of the cost of the Company s debt and due to the higher revenue from prepayments to tourism services suppliers The rise in expenses related to bank slips was a reflect of a higher Company s sales (12.4% in 4Q17) and the greater mix of this payment type, which increased from 24.2% in the 4Q16 to 32.4% in the 4Q17 (1) Do not consider the accounted call option to buy 10% of Trend remaining shares in the amount of R$63.8 MM (2) Excluding factored receivables. (3) Considers Trend's and Visual's LTM EBITDA 18

19 Agenda 1 Recent Events 2 4Q17 Results 3 Q&A Session 19