PROVISIONAL MEASURE No . 1 . 175/2023
Overview of the Provisional Measure published on
June 5, 2023
Purpose:
✔️ Establish a discount mechanism for the acquisition of new vehicles up to R$120,000.00
Discount Value:
✔️ Incentives for passenger cars ranged from R$2 thousand to R$8 thousand
Target Audience:
✔️ The Provisional Measure initially applied only to individuals and at the end of June was extended to companies
Duration:
✔️ Initially, 120 days or up to the total discount of R$500.0 million, with this amount increased by another R$300.0 million throughout the quarter
Source: Companhia e Diário Oficial da União
IMPACTS ON LOCALIZA´S OPERATION
Impact on fleet residual value: R$631.4 million, before taxes,
accounted for in the 2Q23 result
Positive Impact on Cash Flow: Around 23 thousand cars were purchased with discounts between the end of June and the beginning of July.
2
O N E- OFFS AND PROVISIONAL MEASURE
In this quarter, together with the effects related to the business combination (one-offs), we will also highlight the effects from the Provisional Measure No. 1,175 and the write-off of Car Rental Systems tax loss, as follows:
Description | EBIT Impact | Net Income Impact |
Fleet write-up amortization | (122.3) | (80.7) |
Amortization of the customer portfolio write-up | (1.1) | (0.7) |
Impact of Provisional Measure No. 1,175 | (631.4) | (416.7) |
Write-off of Tax Losses | (9.7) | |
Total | (754.8) | (507.8) |
- Fleet write-up: (accounting of the difference between the fair value net of cost of sales and the book value of the
fleet acquired in the business combination): amortization according to the criterion used for depreciation of the vehicles in the fleet or in the event of the car being written off - Customer relationship write-up (accounting for the fair value of customer relationships)
- Write-offof Tax Losses: Write-off of Car Rental Systems' tax loss
- Provisional Media Impact No. 1,175: accounting of R$631.4 million, being R$153.3 million in Seminovos, highlighted as "Adjustment to the Recoverable Value of Assets" and R$478.1 million in the car depreciation line
3
OPERATIONAL HIGHLIGHTS
Consolidated Net Revenue | Consolidated EBITDA | |
R$ million | R$ million |
42.9% | 13,672.1 | 34.6% | 6,846.3 | ||
9,569.3 | |||||
64.2% | 6,689.7 | 5,085.7 | |||
43.4% | 3,283.9 | ||||
4,073.9 | 2,289.4 | ||||
27.1% | |||||
5,495.4 | 6,982.4 | 2,796.3 | 27.4% | 3,562.4 | |
33.8%
3,828.0
52.0 |
3,776.0 |
5,121.9
153.3 |
4,968.6
27.9%
1,953.5
25.8 |
1,927.7 |
2,498.9
153.3 |
2,345.6 |
1H22 Proforma | 1H23 | 2Q22 Proforma | 2Q23 | 1H22 Proforma | |||||
Rentals | Seminovos | EBITDA | |||||||
Debt Profile (as of 06/30/2023) | Debt Ratios |
1H23 | 2Q22 Proforma | 2Q23 | ||
Adjusted for the effects of | Adjusted for the effects | |||
business combination | of PM No. 1,175 |
R$ million | R$ million | ||||||
Cash equivalent to | 0.58x | 2.78x | |||||
81.2% of debt by 2025 | |||||||
44,671.1 | |||||||
11,068.1 | 25,897.1 | ||||||
25,897.1 | |||||||
6,325.6 | 5,777.8 | 6,316.7 | 6,355.5 | 5,695.1 | |||
9,301.6 | |||||||
1,533.2 | 3,840.6 | ||||||
Cash and | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 to 2032 |
financial
assets
2Q23 | 2Q23 | |||||
Net debt | Fleet value | Net debt | EBITDA | |||
4
CAR RENTAL
Net Revenue
R$ million, including royalties
28.2% | 7,421.8 | |||||
5,787.6 | 10.1% | 9.9% | ||||
3,560.8 | 3,919.6 | 1,958.5 | ||||
1,781.8 | ||||||
2021 Proforma 2022 Proforma 1H22 Proforma1H232Q22 Proforma 2Q23
Rental days | ||||||
In thousands | Impacted by | |||||
-3.4% | ||||||
73,109.5 | 4.0% | 76,026.3 | carve-out in y/y | |||
37,837.6 | 36,552.3 | Impacted by | ||||
-5.7% | carve-out in y/y | |||||
19,135.7 | 18,041.5 | |||||
2021 Proforma 2022 Proforma 1H22 Proforma1H232Q22 Proforma 2Q23
NET REVENUE GROWTH IN THE ANNUAL COMPARISON, EVEN WITH THE CARVE-OUT IMPACTING THE RENTAL VOLUMES | 5 |
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Localiza Rent a Car SA published this content on 15 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2023 14:00:04 UTC.