Autohellas Sa · ATHEX:OTOEL
Autohellas Sa — FY2017 Earnings Presentation
41 slides from Autohellas Sa's earnings presentation, 2018
Slide 1: Autohellas 2017 Financial Results & Performance
Autohellas 2017 Financial Results & Performance
Slide 2: Table of Contents
Table of Contents 1. Company Overview (3-4) 2. Financial Results 2017 / Performance (5-6) 3. Segment Analysis (7-11) 4. RAC Greece (12-16) 5. LTR / LEASE Greece (17-22) 6. Fleet & Used Cars (23-24) 7. International Activity (25-28) 8. Auto Trade Opportunity (29-31) 9. Consolidated Performance (32-35
Slide 3: The Leading Regional Car Rental Company
The Leading Regional Car Rental Company Autohellas 8 COUNTRIES …2017 2015 40,000+ VEHICLES 1,000+ EMPLOYEES 2010 2007 2016 100+ LOCATIONS 340mil 2011 1996 REVENUE 119mil EBITDA 1974 54mil 2005 EBIT 3
Slide 4: 20 Years of Stability, Resilience & Growth
20 Years of Stability, Resilience & Growth in mil. EUR FLEET IFRS REVENUE Rental Related Revenue 340.6 264.8 219.1 182.9 186.4 176.0 171.5 161.1 CAGR 15-17 152.0 151.4 41,400 CAGR 09-13 CAGR 13-15 +14% +10% 36,500 -3.6% 32,200 57.5 29,800 28,700 27,200 26,600 11,100 1999 2009 2012 2013 2014 2015 201
Slide 5: Consolidated FY 2017: RRR +18% drives EAT +39%
Consolidated FY 2017 : RRR + 18 % drives EAT + 39 % Amounts in EUR '000 2016 2017 Δ% LEASING / RENTING 154,306 179,732 16% USED FLEET SALES 32,134 39,386 23% RENTAL RELATED REVENUE (RRR) 186,440 219,119 18% AUTO TRADE 78,366 121,513 55% IFRS REVENUE 264,806 340,632 29% EBITDA 104,344 119,295 14% DEP
Slide 6: Performance Highlights 2017 Renting Business
Performance Highlights 2017…. Renting Business RAC PERFORMANCE LEASING/LTR PERFORMANCE International Air Arrivals to Greece increase 10% to +10% 18.5m +15% 100m of Consolidated Revenue Autohellas RAC Revenue Growth +16% Outperforms with 16% … +17% With + 17% ….26,100 active LTR contracts with Only 5
Slide 7: 2+1 Pillars: Proven Profitability in Car Rental in Greece & Balkans
2 + 1 Pillars : Proven Profitability in Car Rental in Greece & Balkans + a new Auto Trade Opportunity GREECE RENTAL INTERNATIONAL RENTAL GREECE AUTO TRADE • Short term RAC & • Short Term RAC & • Added 2016 Lease Lease • 35% Revenue but … • 87 Stations , No Sub • 7 Countries, • 4% of Assets, 3% EBIT
Slide 8: Autohellas - Hertz Relationship… a Growing Partnership
Autohellas - Hertz Relationship… a Growing Partnership A 52 YEAR RELATIONSHIP • 1966 & 1968: Crete & Rhodes Sub-Franchisee • 1974: “Acquisition”… of Failed Hertz Hellas • 1995: Bulgaria Franchise Awarded • 1998: NEW 25 Years Contract • 2005 – 2015: 6 Additional National Franchises Awarded • 2013: Th
Slide 9: Winning Strategy… with some not so typical choices!
Winning Strategy… with some not so typical choices! RAC & LTR / LEASE DUALITY…. 100% Own Stations….no Sub franchisees • + Administration / Logistics Efficiency • + Quality/ Service Level Control • + Car & Insurance Buying Power • + Personnel Development • + Duality = Hedge in Cycles…… • + Leverage A
Slide 10: Winning Strategy…..
Winning Strategy….. AUTO TRADE DISTRIBUTION 2016 & 2018 Multiple Country Franchisee • Frequently Co Exists in Balkans / MEast • + Significance to Suppliers e.g. TO’s • Dealer Affiliation Synergies + Used car and Brokers channel • + Increase Automotive Buying Power • Corporate Customer Relevance • +
Slide 11: GREECE Overall RAC & Lease Market Pre-Crisis to 2017
GREECE Overall RAC & Lease Market Pre-Crisis to 2017 Autohellas Expands Share to 20 % from 15% ....Profitability Grows 785.0 225.0 692.0 679.0 633.0 599.0 Δ% 12-17 242.0 568.0 547.0 570.0 320.0 288.0 274.0 +58% 203.0 260.0 560.0 222.0 RAC MARKET -2% 450.0 LTR MARKET 365.0 345.0 359.0 TOTAL MARKET +2
Slide 12: Greece / Short Term Rental - RAC
Greece / Short Term Rental - RAC 12
Slide 13: 2012-2017 Tourism Arrivals Drive RAC Industry Growth
2012-2017 Tourism Arrivals Drive RAC Industry Growth ……RAC Market 2012-2017 58% in Revenue….. 14.1 14.6 13.4 13.2 12.2 27.0 10.4 24.8 Δ% 12-17 23.6 22.0 Arrivals in mil. tourists +74% 18.5 INT. TOURISM ARRIVALS 17.9 16.8 +65% 15.5 14.7 15.5 INT. AIR ARRIVALS 12.6 TOURISM SPENDING +40% 11.2 Spending
Slide 14: RAC Drivers….. 85% incoming leisure driven so… Tourism
RAC DRIVERS….. 85% incoming leisure driven so… Tourism TOURISM GROWTH + Cost Competitiveness due to 2011-13 Internal Devaluation + Increased Efforts and Gradual Success to Access Russia/ Asia / South America + 2016 + Accelerated Hotel Investments / Renovations / Re-openings + Gradual Proliferation o
Slide 15: Autohellas / Hertz RAC Revenue Outperforms
….Autohellas / Hertz RAC Revenue Outperforms with + 94 % 58.5 50.6 45.8 47.7 Δ% 12-17 34.7 10,200 10,200 10,400 10,900 Fleet in units 30.1 36% 8,500 PEAK FLEET 8,000 REVENUE 94% Revenue in mil. EUR • Fleet Exploitation Improves 2012 2013 2014 2015 2016 2017 • Utilization Improvement …..but still low
Slide 16: RAC Market Structure… Fragmented… 2,000+ Companies
RAC Market Structure… Fragmented… 2,000+ Companies 2012-2017 Autohellas/Hertz Consolidates leadership 2012 AUTOHELLAS 2017 / HERTZ AUTOHELLAS 15% REVENUE / HERTZ 18% AVIS / BUDGET • Most Fragmented European RAC 12% market AVIS / LOCAL BUDGET LOCAL ENTERPRISE • Autohellas/Hertz Consolidates Lead 54%
Slide 17: Greece / Long Term Rental - Leasing
Greece / Long Term Rental - Leasing 17
Slide 18: Greek New Car Market Sales…. Deflate 80% with Crisis
Greek New Car Market Sales…. Deflate 80% with Crisis Recovery 2014+ ….but 2017 at 35 % Pre Crisis 267.0 • Unique Degree of Adjustment ! • Accentuated by Model Mix deterioration 202.0 141.5 • Car Park Steady at 5.0 M 97.7 80.0 88.5 • Among Oldest Fleets / Europe 13.5 Y age 71.0 76.4 106.0 58.5 58.7 6
Slide 19: Leasing / Long Term (Contract) Rental Market
Leasing / Long Term (Contract) Rental Market …. Partially Follows Decline …..& Gradual Recovery…..at Lower Car Mix 226.0 560.0 207.0 191.2 180.5 177.8 175.4 175.6 176.6 450.0 Δ12-17 365.0 Market FLEET th. Units 12% 345.0 359.0 105.0 325.0 325.0 Greece GDP bil. EUR -8% 310.0 87.0 86.0 Market REVENUE
Slide 20: Conservative in LTR in Early Crisis… Dynamic 2014+ Contract Growth
Conservative in LTR in Early Crisis… Dynamic 2014+ Contract Growth once Used Car Market Stable…& Debt Availability Secured 177.4 158.9 129.1 131.4 Δ12-17 120.8 107.3 19,900 End of Year FLEET +41% 17,300 89.8 87.5 16,900 (Units) 16,100 14,100 14,800 13,300 IFRS REVENUE (mil. +7% 12,600 86.4 EUR) 80.2
Slide 21: LTR / Lease Market Structure
LTR / LEASE Market Structure AVIS, Autohellas, LEASEPLAN LEAD….Compete & …… Increasingly Consolidate 2010 2017 OTHER LOCAL OTHER LOCAL 10% 19% AVIS OTHER 3 23% COMPANIES AVIS 11% 27% ARVAL 2% ALD 5% AUTOHELLAS / OTHER 6 HERTZ COMPANIES 16% 26% AUTOHELLAS / LEASEPLAN LEASEPLAN HERTZ 22% ARVAL ALD 9%
Slide 22: Autohellas Performance LTR / Lease… SME Contracts
Autohellas Performance LTR / LEASE… SMES Contracts Becoming More Important…. Support Margin/ Stability / Growth 2012 Clients by units/account 2017 Clients by units/account LTR / FLEET MANAGEMENT 2,390 Clients ORIGIN with LARGE FLEETS 6 to 50 50+ 4,175 Clients 6 to 50 50+ 2% 14% 1% 18% Large Fleets,
Slide 23: Fleet Brand Diversity & Car Buying Power Increased
FLEET Brand Diversity & Car Buying Power Increased….. Used Selling Power Retained….. PURCHASES BRANDS FLEET MIX 17 MIX TREND 267,000 Brand1 14% 8% Brand2 13% 10% Brand3 10% 10% Brand4 10% 10% 141,500 Brand5 8% 12% 76,800 80,000 88,000 Brand6 7% 8% 58,500 58,700 71,000 Brand7 6% 8% 8,200 7,650 Brand8
Slide 24: Autohellas Re-Sells Cars independently
Autohellas Re-Sells Cars independently… Few Supplier Buy Backs… Reduces Real Depreciation & Holding Cost ! Autohellas Used Cars Sales (Units) EXPORT; 31; 1% RETAIL / Market Used Cars Sales (Th. Units) 294.0 DIRECT; 595; 13% RAC 208.0 186.0 193.0 COMPANIES; 179.0 176.0 162.0 161.0 562; 12% 5,850 5,54
Slide 25: International Rental Activity
International Rental Activity 25
Slide 26: International RAC Revenue / Fleet / KPI's
International RAC Revenue / Fleet / KPI’s …..Cyprus, Croatia Tourism Drive Growth ! 4,500 units Reached 21.4 16.3 4,500 Δ% 12-17 11.6 3,600 Units 8.9 137% 7.8 PEAK FLEET 6.6 2,600 2,000 2,100 REVENUE 224% 1,900 mil. EUR • Utilization Driven Profitability • Yields Lower than Greece 2012 2013 2014 201
Slide 27: International LTR / Lease Activity Driven by Romania, Serbia, Bulgaria
International LTR / LEASE Activity Driven by Romania, Serbia, Bulgaria Development … 6,200 units 2017 47.1 43.1 36.0 34.5 32.8 Δ12-17 29.7 End Of Year Fleet (Units) + 94% 23.7 +65% 20.4 21.7 Revenue (mil. EUR) 16.6 6,200 +58% 15.0 5,500 Revenue to Expiration 14.4 4,600 (mil. EUR) 4,200 3,200 3,500 2
Slide 28: International Activity… 10,000+ units, 25% of Group EBIT
International Activity ….10,000+ units, 25% of Group EBIT… Substantial Growth Potential ! …… COUNTRY FLEET EMPLOYEES LOCATIONS REVENUE 2017 (Units) (mil. EUR) FLEET IFRS REVENUE BULGARIA 2,200 60 8 15.0/12.0 mil 57.0 x2 49.1 CYPRUS 1,950 55 5 10.7 mil 39.0 10,650 29.2 9,100 ROMANIA 3,100 55 7 15.0 m
Slide 29: Auto Trade Opportunity
Auto Trade Opportunity Autohellas
Slide 30: Auto Trade… Car Market at 35% Pre-Crisis
Auto Trade ….. Car Market at 35% Pre – Crisis Opportunity to Consolidate Distressed Sector at Low CYCLE point 267.0 • Portugal GDP = Greece but….. ……2.5 X ! Annual Car Sales 202.0 141.5 • LOW CYCLE POINT OPPORTUNITY 97.7 88.5 • Seat Importer Merge 31/12/2015 71.0 76.4 80.0 106.0 58.5 58.7 65.2 36.0
Slide 31: H+K Acquisition Impact
H+K Acquisition Impact 22/12/2017 In Balance Sheet 31/12 but not in Revenue 2017… Balance Sheet Impact H+K • +20m Capital Increase Investment for 70% of H/K 22/12/2017 • + 27m assumed loans • Aggregate 47M Gross Debt Increase 22/12 • Net Debt Increase 32 M (15 Cash H+K) No P&L Effect for 2017….First
Slide 32: Consolidated Financials
CONSOLIDATED FINANCIALS Autohellas
Slide 33: Autohellas Impressive Performance 2012-2017
Autohellas Impressive Performance 2012-2017…… …………. Significant Growth Prospects • Largest Regional RAC / Lease … with FLEET (Units) Rental Related Revenue (mil. EUR) multi market Growth potential IFRS Revenue (mil. EUR) 340.6 • Profitable even in Crisis ! 264.8 182.9 • Accelerated Growth 2016 +…..
Slide 34: Capacity to Grow: Lowest Leverage vs Major Peers
Capacity to Grow : Lowest Leverage vs Major Peers FY17 FY16 FY17 FY17 FY17 AUTOHELLAS SIXT SE EUROPCAR ALD LEASEPLAN PEERS AVERAGE in '000,000 EUR EUR EUR EUR EUR EUR DOMICILE GREECE GERMANY FRANCE FRANCE NETHERLANDS BUSINESS UNITS RAC & LTR RAC & LTR RAC LTR LTR RENTAL RELATED REVENUE (RRR) 219 2,4
Slide 35: 68M Net Investment in Contract Fleet Expansion
68M Net Investment in Contract Fleet Expansion (in ‘000,000 EUR) REPLACEMENT GROWTH USED CARS SALES PURCHASES NET INVESTMENT 151.1 139.0 121.3 41.6 107.5 35.8 104.6 109.5 103.2 44.9 74.8 79.5 75.7 29.3 36.1 71.3 78.2 76.4 68.0 68.5 62.1 36.2 33.6 48.0 29.6 37.4 41.3 36.2 23.3 26.3 45.9 38.6 10.9 39.
Slide 36: Appendix
Appendix 36
Slide 37: 2017: Development / Performance / Accelerated
2017: Development/ Performance/ Accelerated FLEET (Units) CONSOLIDATED Rental Related Revenue (mil. EUR) CONSOLIDATED IFRS REVENUE (mil. EUR) 340.6 264.8 182.9 219.1 186.8 176.0 169.8 172.7 171.5 186.4 EBIT (mil. EUR) 152.0 151.4 161.1 54.1 41,400 36,500 41.8 32,200 29,700 28,700 28,800 28,000 27,20
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet Merged Car Companies / 2015 H+K Acquisition / 2017 >225 M Equity, 2017 x2 to Pre-Crisis 2008 2008 2010 2012 2015 2016 2017 VEHICLES 260,891 237,916 195,225 249,216 302,545 358,184 REAL ESTATE 55,730 65,412 55,748 115,661 114,229 121,755* GOODWILL H+K 25,940 INVESTMENT IN L
Slide 39: Consolidated Income
Consolidated Income 2016 -2017 EBITDA , EBIT, EBT Accelerated Growth Amounts in EUR '000 2008 2010 2012 2015 2016 2017 LEASING / RENTING 137,237 132,718 122,519 137,886 154,306 179,732 USED FLEET SALES 49,601 37,110 29,464 33,627 32,134 39,386 RRR 186,839 169,829 151,982 171,513 186,440 219,119 AUTO
Slide 40: Statement of Cash Flows
Statement of Cash Flows Consolidated Parent in ‘000 EUR 2016 2017 2016 2017 EBITDA 104,344 119,295 75,549 87,006 CARS SOLD PROFIT (13,556) (13,636) (10,342) (9,973) CHANGE IN W. CAPITAL (8,947) (2,463) (6,003) 3,566 NET INTEREST PAID (10,056) (11,055) (8,991) (9,652) CORP. TAX (1,539) (10,376) (33)
Slide 41: Consolidated Fleet Purchases / Sales (units)
Consolidated Fleet Purchases / Sales (units) Purchases Sales 11,100 10,300 9,450 8,400 8,400 6,500 6,350 6,250 6,050 5,800 5,500 5,300 5,400 5,375 5,300 3,900 2008 2010 2012 2013 2014 2015 2016 2017 41