4Q20 and 2020 Earnings Results
March 11, 2021
2020 was transformational for SIMPAR and its Subsidiaries
The pandemic tested and proven the resilience and fundamentals of our companies and evidenced the capacity of our managers
We did not lose focus on the execution and quality of the services provided to our customers, preserving the health of our people
Balance sheet strength of all of our subsidiaries, which have their capital structures prepared to operate in markets with high growth potential, with lower financial costs and longer terms
We completed strategic movements with impact on sustainable value creation for
SIMPAR's shareholders
Strategic Movements Concluded in 2020
Corporate Reorganization
Approval of minority shareholders voting unanimously
SIMPAR started to operate as a holding company for all its subsidiaries
New cycle of development of the subsidiaries
Expansion of participation in the new vehicle transportation sector
IV JSL acquires
Transmoreno
Cross-selling opportunities
October/20
II JSL IPO
Created as the largest road logistics company in Brazil
Optimization of capital structure for new organic and inorganic growth cycle
V CS Brasil revisits its portfolio of clients and services
EBITDA growth of 18.1% YoY, with a margin of 49.3% (+10.4 p.p. vs 2019)
Light vehicles' fleet management grew 14.8% YoY, contributing to 83% of the EBITDA in 2020
CS Brasil wins two auctions of port concessions:
Long-term contracts for the provision of services and positioning in strategic sectors in Brazil
December/20
September/20
III JSL acquires
Fadel
One of the leading urban distribution companies in
Brazil
Increased participation in the beverage, food and consumer goods sectors
August/20
4Q20
Gross Revenue:
All-Time High R$3.0 bn | +3.0% YoY
2020
Gross Revenue :
All-Time High R$10.9 bn | +1.3% YoY
Adjusted EBITDA1 :
All-Time High R$700 mn | +14.5% YoY | 33.5% margin²
Adjusted EBITDA1 :
All-Time High R$2.3 bn | +9.6% YoY | 33.4% margin²
Adjusted Net Income1 :
All-Time High R$215 mn | +78.2% YoY | 8.1% margin
Adjusted Net Income1 :
All-Time High R$522 mn | +66.8% YoY | 5.3% margin
Leverage (Net Debt/EBITDA):
Reduction from 3.6x in 2019 to 3.5x in 2020 even with a Net Capex of R$2.9 billion in the period
Average Term of Net Debt:
Increasing from 4.1 years to 8.5 years³
Notes: (1) Disregards the impairment realized in 1Q20 and the reversal of impairment realized in 4Q20 by Movida; (2) Margin as a percentage of Net Service Revenues; (3) Considers the liability management performed at the beginning of 2021, which raises the net debt maturity from 4.3 years in 2020 to 8.5 years
SIMPAR ready to support a new development cycle with a solid culture and people aligned with our values Direct, control and, if necessary, support the execution of the business plans
(R$ million) | 2020 |
Net Rev. Serv. | 1,338.9 |
EBITDA | 638.9 |
Net Income | 179.2 |
Rental and sale of Trucks, Machinery and Equipment |
(R$ million) | 2020 |
Net Rev. Serv. | 670.2 |
EBITDA | 330.4 |
Net Income | 68.6 |
Services for public sector and mixed economy |
(R$ million) | 2020 |
Net Rev. Serv. | 609.6 |
EBITDA | 37.7 |
Net Income | 8.7 |
Authorized dealers of light vehicles |
(R$ million) | 2020 |
Net Rev. Serv. | 45.4 |
EBITDA | 16.2 |
Net Income | 6.9 |
Leasing, freight payment and financial services |
(R$ million) | 2020 |
Net Rev. Serv. | 1,645.4 |
Adj. EBITDA | 894.9 |
Adj. Net Income | 233.6 |
Rental of light vehicles |
Notes: (1) Positions held directly in the individual by members of the Simões Family, Board Members and Treasury Shares; (2) Positions held directly in the individual by members of the Simões Family, Board Members, Treasury Shares and JSP Holding
Net Revenue
EBITDAEBIT
Net Income
Notes: (1) Margin as a percentage of Net Service Revenues; (2) Disregards the impairment realized in 1Q20 and the reversal of impairment realized in 4Q20 by Movida
Indebtedness: SIMPAR Consolidated Proforma
Emission of Sustainability-Linked Bonds (SLB)
SIMPAR: the first SLB of the industry in the world on 01/14/21
SizeTermGHG¹ reduction target
US$625 mn
2031
15% until 2030
Movida: the first SLB of the car rental industry in the world on 01/28/21
US$500 mn
2031
30% until 2030
SIMPAR: the first SLB in reais settled in dollars from Brazil on 02/10/21
R$450 mn
2028
7.8% until 2025
∑ R$9.1 billion
Leverage Indicators on December 31, 2020
Gross Debt Amortization Schedule on December 31, 2020
(Including Sustainability-Linked Bonds)
Average Cost of Net Debt after Tax (p.a.)
Instrument | Indicator | Index | Covenants2 | Concept |
Debentures, | Net Debt / EBITDA-A | 1.7x | Max 3.5 x | Maintenance |
CRAs and | ||||
NPs | EBITDA-A / Net Interest | 13.5x | Min 2.0x | Maintenance |
Bonds | Net debt / EBITDA | 3.5x | Max 4.0x | Incurrence |
Notes: (1) Greenhouse Gases; (2) EBITDA for leverage purposes disregards the effects of impairment and includes the EBITDA LTM of Fadel and Transmoreno, following the methodology contained in the covenants of debts issued
~95% of assets base is unencumbered
Breakdown of Capex 2020 by Asset Type
4Q20 Capex by Company
2020 Capex by Company
Return and Leverage
ROIC Subsidiaries 2020
ROIC SIMPARLeverage Subsidiaries 2020
Leverage SIMPAR²
Notes: (1) Adjusted effective tax rate disregarding the write-off of deferred tax credits on tax losses totaling R$38 million within the scope of the corporate reorganization; (2) EBITDA for leverage purposes disregards the effects of impairment and includes the EBITDA LTM of Fadel and Transmoreno, following the methodology contained in the covenants of debts issued
Gross Revenue of R$986.0 million in 4Q20, +13.2% vs 3Q20 and 11% higher than 4Q19
Net Income of R$37 million in 4Q20, +18% YoY, given capital structure optimization and operating margin improvement
Combined acquisitions of Fadel, Transmoreno, TPC¹ and Rodomeu¹ would add R$1.1 billion to 2020 Net Revenue
RAC: Record occupancy rate of 78.9% in 2020 and record R$2,268 in revenue per car in 4Q20
GTF: Final fleet of 47.2 thousand cars, with addition of 8.5 thousand in 2020 and record volume of 3.6 million daily rentals in 4Q20
Used Cars Sales: Growth of +11.4% in the average ticket YoY in 2020, with record of R$50,100 in 4Q20 and an EBITDA margin of 11.7% in 4Q20
Notes: (1) The conclusion of the transaction is subject to compliance with the obligations and conditions precedent usual for this type of transaction, including the approval of the Administrative Council for Economic Defense - CADE; (2) Net Income from logistics operating activity does not consider the treasury segment, which includes debts issued for investment in other companies of the group when JSL S.A. acted as a holding company. Consolidated net income including the treasury segment totaled R$30.5 million in 4Q20 and R$41.0 million in 2020; (3) Margin as a percentage of Net Service Revenues
Growth of 15.1% in GTF Net Revenue from Services in 4Q20 and 10.7% in 2020 compared to previous year
35.3%¹ increase in Operating Income in 2020 versus 2019, disregarding non-recurring result of divestments in 4Q19
Net Income increased 49.2%¹ YoY in 4Q20 and 3.5%¹ YoY in 2020, despite higher net debt due to corporate reorganization
Notes: (1) Disregards the non-recurring result of the disposal accounted for by the divestiture of the concession of a municipal transport line in November 2019, whose positive impact was R$14.9 million on EBIT and EBITDA and R$9.8 million on Net Income for 4Q19 and 2020; (2) Margin as a percentage of Net Service Revenue
Starting 2021
Bonds issued equivalent to R$6.7 billion
SIMPAR: US$625 mn | 10 years
R$450 mn | 7 years
Movida: US$500 mn | 10 years
Extending the average term of the Net
Debt from 4.3 to 8.5 years
Commitment to reduce Greenhouse
Gas Emissions
I Movida acquires Vox¹
GTF Light Vehicles company
Fleet: 1.8 thousand
Strengthens Movida's GTF in specific market niches
February/21
January/21
V Evaluation of Proposal for Integration of CS Frotas by Movida
Consolidate the activity of Light VehiclesGTF
of the SIMPAR group in Movida
Growth and value generation agenda for
Movida and SIMPAR shareholders
After consideration by the independent board
members of Movida and SIMPAR, it will be
delegated to the minority shareholders of
Movida
II Vamos IPO
Primary funding of R$890 million and secondary funding of R$415 million
Strengthens its capital structure and prepares it to operate in a market with high growth potential
VI JSL acquires Rodomeu¹
Road transportation of highly complex cargo
Entering into the compressed gases segment and higher scale in the transportation of machinery and equipment
III JSL acquires TPC¹
Logistics operator with focus on warehousing and logistics managementAdds new sectors and customers, such as health care, cosmetics and telecom
Differentials in fullcommerce and last mile
Notes: (1) The conclusion of the transaction is subject to compliance with the obligations and conditions precedent usual for this type of transaction, including the approval of the Administrative Council for Economic Defense - CADE
Strategic Opportunities
Our goal is to capture opportunities with agility, governance and motivated people to expand diversification and ensure the group's sustainable development
New cycle of sustainable growth organically and through acquisitions, leading the consolidation of the sector, seeking people and processes that contribute to offer better services to our customers and to the development of results
Grow profitably due to unique positioning with scale for purchase and capillarity for maintenance and sale of heavy assets, with the purpose of continuing leading the development of the sector in Brazil
Growth driven by asset ownership replacement use, proximity to customers, agility and innovation, meeting the growing demand for new products and markets
Grow in the provision of services based on long-term contracts with a focus on resilient revenues, positioning in key sectors in Brazil and preserving capital discipline
Expanding the sale of vehicles and offer of after-sales services of dealerships, as well as insurance through Madre
Corretora, with strong synergy with SIMPAR's other businesses
To become the main means of payment of the cargo transportation ecosystem and app drivers in Brazil, as well as to expand the leasing offer to customers of the group's dealerships, contributing to the loyalty of its customers
Acknowledgment and Disclaimer
THANK YOU!
Disclaimer
This Earnings Release is intended to detail SIMPAR S.A.'s financial and operating results in the third quarter of 2020.
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 could carry out their own analyses and reach their own conclusions regarding the results disclosed herein.
Investor Relations
Tel: | +55 (11) 2377-7178 |
E-mail: | ri@simpar.com.br |
Website: | ri.simpar.com.br |
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Simpar SA published this content on 11 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2021 16:52:01 UTC.