Syn Prop e Tech SA · BMFBOVESPA:SYNE3
Syn Prop e Tech SA — Unidas — Q3 2018 Earnings Presentation
24 slides from Syn Prop e Tech SA's earnings presentation, 2018
Slide 1: Earnings Conference Call 3rd Quarter of 2018
Earnings Conference Call 3rd Quarter of 2018
Slide 2: Agenda
Agenda Highlights New and Used Cars Sales Scenario Operating Performance Financial Performance Q&A 2
Slide 3: Agenda
Agenda Highlights New and Used Cars Sales Scenario Operating Performance Financial Performance Q&A 3
Slide 4: 3Q18 Operational Highlights
3Q18 Operational Highlights # Daily Rentals – Fleet Management # Daily Rentals – Rent-a-Car 20.000 18.000 Thousand Thousand 16.000 14,894 +26.4% 14.000 +93.6% 5,912 Record 12.000 4,677 Record 10.000 7,693 +64.2% +28.1% 8.000 5,684 2,138 6.000 4.000 3,461 1,669 2.000 0 9M17 9M18 3Q17 3Q18 9M17 9M18 3
Slide 5: 3Q18 Financial Highlights
3Q18 Financial Highlights For a further quarter, there was a positive evolution in revenues and EBITDA. Consolidated Net Revenue 1,914.2 +163.5% CAGR (2013-2017) +18.0% 969.5 1,048.1 +173.0% 832.6 708.3 754.7 726.5 629.2 525.2 278.8 540.9 422.3 316.3 352.3 365.1 255.4 305.0 218.1 665.9 153.2 392.0 4
Slide 6: 3Q18 Financial Highlights
3Q18 Financial Highlights Highest net profit of the Company registered in a single quarter and record of spread between ROIC and debt cost still with the expected synergy gains for the next quarters. Net Profit and Net Margin¹² 13.0% 12.3% 14.2% 12.4% 14.6% 200 5.0% 6.6% 4.7% 7.2% 10,0% 180 160 134.
Slide 7: Agenda
Agenda Highlights New and Used Cars Sales Scenario Operating Performance Financial Performance Q&A 7
Slide 8: New and Used Cars Sales Scenario
New and Used Cars Sales Scenario New and Used Car Sales in Brazil¹ (Cars and light commercials – Million of units) 20 5.0x 4.9x 5.1x 4.9x 6,0x 18 4.5x 4.3x 4.0x 5,0x 16 3.1x +10.0% 4,0x 14 2.6x +7.0% +12.5% 3,0x 10.1 10.7 10.0 10.0 12 9.5 +16.7% 2,0x 8.0 8.0 10 1,0x 8 6 -3.4% 0,0x 3.6 3.3 2.5 2.9 2.
Slide 9: Agenda
Agenda Highlights New and Used Cars Sales Scenario Operating Performance Financial Performance Q&A 9
Slide 10: Fleet End of Period
Fleet End of Period Fleet Breakdown (# of vehicles) 119,941 119,941 Operacional Operating Implantação Deployment Desmobilização Demobilization 3,925 10,166 Fleet Management Rent-a-Car Rent-a-Car – Franchises +168.7% 9,457 43,363 46,566 44,644 1,964 2,536 100,318 28,265 30,424 31,184 27,731 4,283 3,0
Slide 11: Fleet Investment
Fleet Investment Net Fleet Investment (R$ million) 1,022.2 +343.1% 1,991.7 +520.3% 547.7 334.2 262.5 230.7 193.6 969.5 970.0 144.5 (23.3) 859.4 88.3 517.9 525.2 595.8 509.9 362.6 316.3 329.0 352.3 365.1 422.3 218.1 255.4 236.5 148.2 2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18 Cars Acquisition Car S
Slide 12: Fleet Management (1/2)
Fleet Management (1/2) Cars from new hires showed a growth of 117.4% in the quarter. The commercial pipeline expected for the 4Q18 presented the highest amount in a single quarter, totaling 38.7 thousand vehicles. Commercial Pipeline New Contracts 124.9 thousand 478.6 +30.0% 309.6 96.1 thousand 14.0
Slide 13: Fleet Management (2/2)
Fleet Management (2/2) The net revenue was boosted by the increase of the number of daily rentals, partially mitigated by the monthly average tariff reduction (lower than the average DI variation). Number of Daily Rentals (thousand) and Average Monthly Rate (R$) 1,502 1,609 1,597 1,546 1,564 1,495 1
Slide 14: Rent-a-Car (1/2)
Rent-a-Car (1/2)¹ Average Age of the Operating Fleet and Average Occupancy Rate reductions due to the expansion of car supply and the initiative of the Company to prepare itself for demand increase in the next quarters. Average Age of the Operating Fleet Average Occupancy Rate (In Months) (Rented Fl
Slide 15: Rent-a-Car (2/2)
Rent-a-Car (2/2)¹ Historic record of the number of daily rentals in 3Q18 and average daily tariff expansion enhancing third quarter revenues annual growth in 38.7%, above the 21.0% weighted average growth in the 2013 to 2017 period. Daily Rentals (thousand) Average Daily Tariff (R$) 6,486 +26.4% 5,9
Slide 16: Used Cars (1/2)
Used Cars (1/2) The average selling price was R$ 32.9 thousand in 3Q18 and R$ 32.3 thousand in the 9M18, showing annual growths of 6.5% and 1.3%, respectively, due to the mix of sold vehicles in these periods. Used Cars Stores 30,049 16,710 12,843 120 10,522 11,565 12,729 12,402 11,442 4,792 100 - 7
Slide 17: Used Cars (2/2)
Used Cars (2/2) Retail sales in 68.7% and Gross Profit of R$ 42.5 million in 3Q18. Gross Revenue per Selling Channel (R$ Million) Varejo Retail Atacado Wholesale % Varejo Retail 63.3% 63.8% 68.1% 64.6% 68.7% 49.0% 80,0% 70,0% 1.200,0 29.4% 33.1% 60,0% 50,0% 15.2% 40,0% 971.0 30,0% 1.000,0 +49.9% 20,
Slide 18: Agenda
Agenda Highlights New and Used Cars Sales Scenario Operating Performance Financial Performance Q&A 18
Slide 19: Consolidated Net Revenue
Consolidated Net Revenue Consolidated net revenue expansion supported by the organic growths of all business divisions, in addition to the incorporation of the operations of Auto Ricci and Unidas. 1,914.2 +163.5% 969.5 1,048.1 832.6 754.7 726.5 278.8 +173.0% 708.3 525.2 629.2 540.9 422.3 316.3 352.3
Slide 20: Recurring EBITDA and EBIT
Recurring EBITDA and EBIT¹ 3Q17 Recurring Entry in RAC 120,0% Segment and Better 100,0% lower Used Vehicles Cars Margin Purchase 29.6% 80,0% 60,0% 14.7% 12.6% 25.7% 100.0% 40,0% 68.4% 20,0% 42.7% 0,0% Net de Receita Rental Locação Maintenance Custo com & SG&A Expenses Despesa com SG&A Resultado Used
Slide 21: Net Profit and Non-recurring effects
Net Profit and Non-recurring effects¹ Recurring Financial Results Recurring Net Income R$ Million % of Rental Revenue R$ Million % of Rental Revenue 28.5% 14.2% 14.6% 23.9% 24.4% 24.9% 200 13.0% 15% 21.4% 12.3% 12.4% 300 30% 19.9% 20% 180 250 160 202.6 134.5 +126.0% 10% 140 7.2% Record +9.3% +199.6%
Slide 22: Financial Results
Financial Results Consistent operating results and a better capital allocation reflected in a significant expansion of the return over invested capital and net profit. On an annualized basis, ROE reached 22.8%, growth of 17.5 p.p. compared to 2013. Annualized ROE¹ Annualized ROIC Record Var. (2013-9
Slide 23: Capital Structure
Capital Structure The Company had a cash balance in the amount of R$1,156.8 million, enough to address the debt principal payment due to 2020 and address 68.2% up to 2021. Debt Composition (Principal) Covenants 1.1% 1.6% Net Debt/ EBITDA LTM Debt/(Debt + Equity) 0.5% 7.8% Debentures -0.04x +2.91 p.p
Slide 24: Q&A
Q&A ri.unidas.com.br Contact: ri@unidas.com.br 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 projections and as such are based exclusively on the Board's ex