Institutional Presentation 1Q17

Transcription

1 Institutional Presentation 1Q17

2 Main Highlights of 1Q17 JSL Consolidated Consolidated Net Revenue of R$1.8 billion in 1Q17 (+17.6% YoY), demonstrating the Company's resilience; Net Revenue from Services of R$1.3 billion in 1Q17 (+5.6% YoY); Net Revenue from Sale of Assets¹ of R$457.7 million in 1Q17 (+75.9% YoY), underlining the Company s ability to sell its assets; EBITDA of R$307.1 million (+5.2% YoY) and EBITDA Margin of 23.7% in 1Q17 (-0.1 p.p. YoY); Net Investment of R$154 million in 1Q17 (-38.6% YoY); Free Cash Flow to Firm of R$141 million in the last 12 months. Movida s IPO in February 2017: raised a total of R$600 million and strengthened our capital structure. ¹ Logistics + Movida 2

3 JSL At a Glance Business Divisions Overview 1Q17 LTM Figures Gross Revenue EBITDA Fleet Simoes Family 74.0% 25.8% (3) Dedicated Supply Chain Services Inbound and Outbound logistics services Internal logistics (product handling and inventory mgmt) Market cap (1) : R$1.4Bn ( 100% Outsourcing of Fleet and Equipment Passenger Transportation Rental of machinery/equipment, with or without service Personalized services: drivers, maintenance, vehicle replacement, equipment and vehicle availability Bus charter services to clients employees and tourism Public transportation: municipal R$4.8Bn (61% of total) R$788MM (73% of total) 35.4k (light & heavy vehicles, trucks/buses, wagons and equipment) General Cargo Transportation Transportation of raw materials or finished products Asset light: 99% of cargo transported by third party trucks Rent-a-Car Retail (B2C) Rent-a-Car business 65.6% R$2.1Bn (27% of total) R$281MM (26% of total) 64.1k (light vehicles) Fleet Mgmt. Institutional (B2B) fleet management and outsourcing 100% Authorized Dealerships Synergistic with JSL Logistica and Movida R$893MM (11% of total) R$ (6) MM 29 dealerships JSL Consolidated (2) R$7.7Bn R$1.1Bn 99k 1. As of May, The difference of the sum and consolidated values are inter-segment eliminations 3. Does not include 0.2% of shares in treasury 3

4 Network Branches in 20 states and 4 countries RR AP + 24, , Own stores Employees Operating assets Distribution Centers Across Brazil Intermodal Logistics Center 1 Dry Port and 1 REDEX Movida RAC Authorized Dealerships Light vehicles Authorized Dealerships Heavy vehicles Seminovos Used light vehicles stores AC Chile AM RO Argentina MT PA MS Uruguay GO RS PR DF SC TO SP MA MG PI BA CE ES RJ PE PB RN AL SE 12 Seminovos Used heavy vehicles stores Location of JSL Logística operations Performance in all national territory and Latin America 4

5 Business Model Understand in order to Serve" Pricing and Signing of the Contract 1 2 Strong Bargaining Power Financing and Acquisition of Assets Pricing inputs Structure of Contracts Exclusive Sources of Financing Acquisition of Assets Acquisition price of assets Depreciation Target ROIC Residual value Operating Expenses From 2 to 10 years Readjustment mechanisms Minimum volumes Cancellation penalties JSL Logística (1) 61% Movida (1) 27% BNDES Leasing OEMs Financing Capex committed only after financing secured Economies of scale (OEM discounts) Used Vehicle Stores 71 stores Sale of Assets Authorized Dealerships 29 stores Synergy Between Divisions Sales via own dealerships, leading to lower depreciation Dealerships (1) 11% General Cargo Dedicated Services Provision of Services Cross Selling Opportunities Management and Outsourcing Passenger Transportation RAC Maximization of Selling Price 4 3 Largest Portfolio of Services 1. Share of total gross revenue in 1Q17 LTM. 5

6 Logistics Participation in Gross Revenue from Services R$ MM Steel and Mining Pulp and Paper Foodstuffs and beverages Automotive Agriculture 13% 13% 11% 10% 9% 10% 13% 14% 15% 13% 10% 10% 12% 11% 12% 12% 8% 9% 9% 9% LTM 1Q LTM 1Q LTM 1Q LTM 1Q LTM 1Q17 Revenues % Logistics Services ROB Decades of Customer Loyalty More than 400 clients High retention rate The 50 biggest clients account for 68% of the service revenues No client accounts for more than 8% of the gross services revenues x Years of Commercial Relationship 6

7 Logistics Revenue and EBITDA Participation in gross revenue from services (2016) Gross Revenue (R$MM) EBITDA (R$MM) and Margin 22.9% 20.5% 21.1% 4, ,719 4, General Cargo Passenger Transportation 11% 8% 1% Others 4,112 4,407 4, % 57% LTM 1Q17 Services Sale of Assets LTM 1Q17 EBITDA Fleet Management and Outsourcing (Vehic./Mach./Equip.)* * With adition of services / public / heavy vehciles Dedicated Services EBITDA of R$216.1 million (-2.6% YoY), with an EBITDA Margin of 24.6% (-0.8 p.p. YoY); the reduction was mainly due to the idleness of assets within our clients that are not yet operating at full capacity given the economic deceleration in Brazil occurred in the last years. 7

8 Movida Revenue, EBITDA and Fleet Gross Revenue (R$MM) 1,930 2, EBITDA (R$MM) and Margin 39.1% Fleet (thousand vehicles) , % 33.1% ,039 1, LTM 1Q LTM 1Q LTM 1Q17 Used-Vehicles RAC GTF EBITDA RAC GTF EBITDA of R$85.1 million (+15.4% YoY), with an EBITDA Margin of 34.7% (-3.7 p.p. YoY); the YoY EBITDA margin reduction is related to the increase in administrative expenses, mainly as a result of administrative team structuring and an increase in provisions for losses 8

9 Dealerships Geographical location Synergies with other businesses 1Q17 30 stores of the brands: Volkswagen (12), MAN (13), Fiat (3) and Ford (1) selling new and used light and heavy vehicles TO SE Logistics Division Sale of Used Light Vehicles Dealerships 6% Direct sales by the Dealerships Group companies 90% Others 94% Others 10% SP RJ Sales of Vehicles (thousand units) Rio Grande do Sul RS Tocantins Sergipe Rio de Janeiro LTM 1Q17 Light Vehicles Direct Light Vehicles Retail Heavy Vehicles Retail Heavy Vehicles Direct São Paulo 9

10 Leasing (R$ million) Q17 LTM 1Q16 1Q17 Net Revenue EBITDA Incipient segment, already showing positive results 10

11 JSL Consolidated Investments (R$ million) 618 Maintenance Expansion Gross Capex Revenue from Sale of Assets Net Capex R$601 milhões investidos em veículos leves no 3T16 Gross Investment Gross Investment in 1Q17 was R$618 million divided into: 65% in maintenance: R$31.6 million in JSL Logística and R$369,0 million in Movida, as well as R$3.7 million in Dealerships. 35% in expansion, mainly R$147.6 million in JSL Logística, R$65,1 million in Movida and R$1.4 million in Other. Revenue from Sale of Assets in the period was R$464 million, which resulted in net investment of R$154 million in the quarter. 11

12 JSL Consolidated Free Cash Flow to Firm (R$ Million) JSL Consolidated Q17 LTM EBITDA 1,061 1,076 Non-cash Cost of Sales of Assets 1,289 1,474 Taxes + Working Capital Operating Cash Flow 2,756 2,727 Maintenance Capex (1,105) (1,319) Cash Generated before Growth and Interest 1,651 1,407 Expansion Capex (1,382) (1,267) Free Cash Flow to Firm Note: The difference between the sum of Logistics and Movida to Consolidated is composed of intercompany effects and results of JSL Concessionárias and JSL Leasing Logistics 2016 Movida Q17 LTM EBITDA Non-cash Cost of Sales of Assets Taxes + Working Capital (49) (222) Operating Cash Flow 1, Maintenance Capex (181) (201) Cash Generated before Growth and Interest Expansion Capex (522) (446) Free Cash Flow to Firm Q17 LTM EBITDA Non-cash Cost of Sales of Assets Taxes + Working Capital Operating Cash Flow 1,663 1,769 Maintenance Capex (906) (1,046) Cash Generated before Growth and Interest Expansion Capex (834) (852) Free Cash Flow to Firm (77) (129) 12

13 Consolidated Indebtedness R$MM as of 1Q17 Net Debt to Operating Assets 6, ,738 1,443 4, x Assets / Net Debt 5,256 3, x Assets / Net Debt 6,219 3,516 Light Vehicles 2,137 2,702 Heavy Vehicles Gross Debt Cash and Equivalents Net Debt Assets Assets FIPE Loans and Debentures Suppliers Financing Debt Amortization Schedule Leverage Indicadors 03/31/2017 R$MM Net Debt + Suppliers Confirming / EBITDA-A 1.9x 2,550 1, ,443 1, ,204 1,311 1, Net Debt + Suppliers Confirming / EBITDA EBITDA-A / Net interest expenses + Confirming Cost 4.5x 4.0x EBITDA-A LTM (1) (2) Liquidity ST apr/18 to dec/ to 2025 Gross Debt Confirming Payable Automakers 1. EBITDA-A or EBITDA added corresponds to EBITDA excluding the cost from the sale of assets, which is non-cash 2. Cash and equivalents and securities and commited lines 13

14 JSL Consolidated (Gross Revenue in R$ million) 3.8x 3.2x 4.1x 3.9x 3.8x 4.4x 4.3x 5.0x 4.5x 21.6% 21.5% 20.0% 17.6% 18.0% 15.7% 16.3% 4,479 (1) 91 5,243 4,431 4,071 4,435 4,719 4,785 3,350 2,260 2,678 1,651 1,163 1,231 1,319 1, (1) 6,079 6, , % 20.6% 7,659 (1) 1,930 2, Q17 LTM (1) (1) 7,384 (1) Dealerships/Leasing Logística Gross Revenues Movida Gross Revenues EBITDA Margin Net Debt + Confirming Payable Automakers/EBITDA 1. Includes elimination between business 14

15 Corporate Governance Shareholder Composition Other members of the Simões family Fernando Antonio Simões Treasury Shares Novo Mercado 100% ON shares, with a 25.8% Free Float and 0.2% Treasury Shares 100% Tag Along Voting capital 7.2% 10.3% 56.5% 25.8% 0.2% Financial and Supplies Committee Audit Committee Base: 03/31/2017 Total ON Shares: 202,500,000 Ethics and Compliance Committee Ethics Code Management Structure Board of Directors 5 members, 2 of whom are independent Audit Committee External Audit Financial and Supplies Committee Ethics and Compliance Committee 3 members, 1 of whom is independent 3 members, 1 of whom is independent CEO Legal Department Executive Board Audit 15

16 THANK YOU SO MUCH!

17 Contract with automotive sector: R$ 350 million global Asset light operation, focused on management and intelligence 100% of internal logistics in Resende/RJ plant Capex: R$ 15 million Term: 60 months Seaport and Airport (imports and exports) TGX Line Imports Reception Storage Sequencing 1 Management of the Logistic Center a. Reception b. Verification c. Sequencing d. Transportation to the plant Inbound 2 Internal Plant Logistics a. Reception of parts b. Verification c. Sequencing d. Feeding of production lines e. Logistic planning f. Sorting of parts g. Pilot plant / prototype 3 SKD Operation a. Reception of semiknocked down parts b. Handling c. Verification d. Storage e. Packaging f. Container loading 4 CKD Operation a. Reception of parts and accessories b. Handling c. Verification d. Storage e. Packaging f. Container loading 17

18 Management and Outsourcing of fleets with service Example: Laboratory 2. Transportation of biological materials to hospitals, clinics and laboratories 3. Residential pick-up of medical exams with car and driver 4. Rental of vehicles for sales force 7. Chartering 6. Transportation of biological materials from countryside 1.Transportation of materials from warehouse to laboratory 5.Transportation of client s operational equipment Tracking of the fleet via satellite 18

19 Dedicated Services, Fleet Management and Outsourcing and Passengers Transportation Mining Loading of Ore Transport and satellite monitoring center Rental of vehicle with driver at the client s disposal Highway maintenance Watering of roads Passenger Trasnportation Machine Fueling Transport of ore Selective collection Industrial cleaning Lifting of loads Waste management Waggon loading 19

20 Dedicated Services, Fleet Management and Outsourcing and Cargo Transportation Pulp and Paper 1 Wood 3 Delivery of 5 harvesting raw material and loading Industrial landfill Inbound Shipment Outbound Transportation of waste 2 Transportation of wood Rental of vehicles Transportation of finished goods 4 Inventory management Internal logistics 6 Movement of inventory and loading of ships and barges 20

21 Overview of the fleet Current fleet of approximately 99 thousand assets Book value of assets: R$5.7 billion R$MM, 1Q17 (1) Book value R$5.3 Bn (1) Market value R$6.2 Bn (1) 5,737 3, Light Vehicles Trucks Trailers Tractors Machinery and Equipments Buses Other Assets Total (2) Young fleet: Average age of 1.8 years Result from the sale of assets Thousands of vehicles / years, in 1Q17 R$ MM Movida + JSL Logística ,334 1, Light Vehicles Trailers Machnery and Equipments Trucks Tractors Buses ,267-1, No. Of Vehicles Average age (years) 1. Includes vehicles in stock 2. Includes real condition, improvements to third-parties and aggregates and others Q17 LTM Revenues Costs Gain/Loss 21

22 Credit Highlights Established position as #2 RAC player after only 2 years Already past the largest/initial investment requirements Introducing innovative approach to the segment s Movida IPO and strengthening of capital structure 5 Successful Entry Into Rent-a-Car Segment Balance Sheet Marked to Market Complete fleet renewal within 2-3 years on average Liquid asset base 1.3x Net Debt 6 Financial Profile 4 Liquid Asset Base, with Fast Turnover Long, consistent track record of fleet renewal with profitability Absolute leader in core segments 1 Undisputed Leader in Logistics Services in Brazil 3 Lasting Relationship with High Quality and Diversified Customer Base Clients among the largest and best rated in Brazil Scale that provides significant advantage in acquiring new assets Complete array of logistics solutions 2 Contracted and Predictable Revenue Model No client accounts for more than 8% of logistics revenue from services; no segment accounts for more than 14% High customer loyalty with continuous crossselling Length of contracts of 5 years on average Pricing under preagreed adjustment formulas Minimum guaranteed volumes 22

23 Some of the statements contained herein constitute additional information that has not been audited or reviewed by the auditors and is based on Management s current opinion and prognoses. Consequently, there may be material differences between said statements and the Company s actual future results, performance and events. Actual results, performance and events may differ substantially from those expressed or implied by said statements as a result of various factors, including the general and economic situation in Brazil and other countries; interest, inflation and exchange rates; changes in laws and regulations; and general competitive factors (at global, regional or national level). Consequently, Management accepts no responsibility for the conformity or accuracy of the additional information in this report that has not been audited or reviewed by the auditors. Said information should be examined and interpreted in an independent manner by shareholders and market agents who should carry out their own analyses and reach their own conclusions regarding the results disclosed herein. JSL S.A. Investor Relations Tel: +55 (11) ri@jsl.com.br