Institutional Presentation - February, 2015

48
February, 2015. Localiza Rent a Car S.A. Institutional Presentation 1

Transcript of Institutional Presentation - February, 2015

February, 2015.

Localiza Rent a Car S.A.Institutional Presentation

1

1. Company overview

2. Main business divisions

� Car Rental

� Fleet Rental

� Seminovos

3. Consolidated

Appendix: Earnings release 4Q14

Agenda

2

Company: milestones

Phase I – Rise to #1

1973 – Founded in Belo Horizonte/MG

Late 70’s - Acquisitions in the Northeast of Brazil

1981 – Brazilian car rental leader in # of branches

Phase II – Expansion

1984 – Expansion strategy by adjacencies: Franchising

1991 – Expansion strategy by adjacencies: Seminovos

1997 – PE firm DL&J enters at a market cap of US$ 150 mm

1997 – Expansion strategy by adjacencies: Fleet Rental

Phase III – Reaching Scale

2005 – IPO: market cap of US$ 295 mm

2011 – Rated as investment grade by Moody’s, Fitch and S&P in 2012

2012 – ADR level I

12/31/2014 – Market cap of US$2.8 bi with ADTV of R$36.5 million

1973 1982 1983 2004 2005 2014

3

Company: integrated business platform

Synergies:

bargaining power

cost reduction

cross selling

� 13,339 cars

� 172 locations in Brazil

� 64 locations in South America

� 37 employees

� 58.7% sold to final consumer

� 75 stores

� 998 employees

� 77,573 cars

� 4.3 million clients

� 304 locations

� 4,491 employees

� 34,312 cars

� 798 clients

� 387 employees

This integrated business platform gives Localiza flexibility and superior performance.

Based on the 4Q14 4

Car Rental Fleet Rental

SeminovosFranchising

35%

65%

5

2014 Consolidated breakdownR$ million

Net Revenues EBITDA

12%

35%52%

52%

15% 33%

Company’s profitability comes from Car Rental and Fleet Rental Divisions.

EBIT*

Net revenues EBITDA EBIT Net income

1,302.1 506.6 473.3 263.1

571.9 343.0 253.4 147.5

2,018.2 120.2 * *

Consolidated 3,892.2 969.8 726.7 410.6

*Seminovos results recorded in the Car Rental and Fleet Rental Division.

6

� High fixed cost� Standard fleet� Cycle of 12 months� High entry barriers� Scale gain� Consolidated airports /

fragmented out of airports

� Sales to the final consumer

� Reduction ofdepreciation

� Know How of used carsmarket

� Expansion of Localiza´sbrand

� Important for distribution

� Low contribution ofrevenues, EBITDA andprofit

Company: Business platform divisions

Car Rental

Localiza car rental rents to individuals or businesses at airports and other locations.

Franchising

Supplementary business, with the purpose to expand the brand’s network.

Fleet Rental

Offering customized fleet for 2-3 years terms.

Used Car Sales

Support area, with the objective to sell the Company’s used cars and add know-how in buying cars and estimating the residual value.

� Low fixed cost� Customized fleet� Cycle of 24 to 48

months� Low entry barriers� No operational leverage

1,462.8 1,699.2 1,802.5 1,821.8

2010 2011 2012 2013

Rental revenues evolution

4,637.6 4,692.1 4,791.3 4,698.2

2010 2011 2012 2013

Localiza’s rental revenues at constant prices

Sector’s revenue at constant prices (ex- Localiza)

GDP 7.5% 2.7% 1.0% 2.5%

Average GDP growth: 2.7%

Source: ABLA (Brazilian Car Rental Association) and Localiza. 7

The Company grew at an average of 2.8x GDP and 19.0x the sector.

8

Net car salerevenue R$26.21 year cycle

Car Rental Financial CyclePer car

R$27.8Average car price

1 2 3 4 5 6 7 8 9 10 11 12Expenses, interest and tax

Revenue

Spread9.5p.p.

Total

1 year

R$ % R$ % R$

Net revenues 20.9 100.0% 29.0 100.0% 49.8

Costs - fixed and variable (9.4) -44.9% (9.4)

SG&A (3.4) -16.3% (2.8) -9.6% (6.2)

Net revenues of car sold 26.2 90.4% 26.2

Book value of car sold (24.8) -85.6% (24.8)

EBITDA 8.1 38.7% 1.4 4.7% 9.5

Cars Depreciation (1.3) -4.4% (1.3)

Others depreciation (0.4) -1.7% (0.2) -0.6% (0.5)

Financial expenses (1.7) -6.0% (1.7)

Taxes (2.3) -11.1% 0.5 1.9% (1.8)

Net Income (Loss) 5.4 25.9% (1.3) -4.4% 4.1

NOPAT 5.3

ROIC (it considers the effect of the average book value of the car in its useful life) 17.5%

Cost of debt after taxes 8.0%

Car Rental Seminovos

Per car soldPer operating car

9

Net car salerevenue R$24.4

3 year cycle

Fleet Rental Financial Cycle

Per car

Spread9.5p.p.

1 2 3 4 5 6 19 20 21 22 23 24Expenses, interest and tax

Revenue

R$33.3Average car price

Total

3 years

R$ % Seminovos % R$

Net revenues 55.7 100.0% 26.9 100.0% 82.6

Costs - fixed and variable (18.6) -33.4% (18.6)

SG&A (3.7) -6.7% (2.5) -9.3% (6.2)

Net revenues of car sold 24.4 90.7% 24.4

Book value of car sold (21.2) -78.9% (21.2)

EBITDA 33.4 60.0% 3.2 11.8% 36.6

Cars Depreciation (12.6) -46.9% (12.6)

Others depreciation (0.1) -0.2% (0.1) -0.2% (0.2)

Financial expenses (4.4) -16.3% (4.4)

Taxes (10.0) -17.9% 4.2 15.5% (5.8)

Net Income (Loss) 23.3 41.8% (9.7) -36.1% 13.6

Net Income (Loss) - per year 7.8 41.8% (3.2) -36.1% 4.5

NOPAT 5.6

ROIC (it considers the effect of the average book value of the car in its useful life) 17.5%

Cost of debt after taxes 8.0%

Per operating car

Fleet Rental Seminovos

Per car sold

Raisingmoney Buying

cars

Renting Cars SellingCars

Source: ABLA (Brazilian Car Rental Association) and Localiza.

Cash to renew the fleet or pay debt

$

Profitability comes from rental divisions

Competitive advantages: 41 years of experience in managing assets

$

10

Competitive advantages: raising money

Global Scale

National Scale

Localiza raises money with better conditions when compared to competitors.

As of December, 2014.

BBB FitchBaa3 Moody’sBBB- S&P

BBB+ S&PB1 Moody´s

B+ S&PBB- Fitch

brAAA S&P Aa1.br Moody’sAAA(bra) Fitch

brAA- S&PA+ (bra) Fitch

brA S&P A (bra) Fitch

A+ (bra) Fitch A(bra) Fitch

Raisingmoney

Buyingcars

Renting CarsSellingCars

11

Investment grade: lower spreads and longer tenors

Source: Bloomberg/ Websites Ouro Verde and Locamérica

12

Competitive advantages: buying cars

Localiza buys cars with better conditions due to the volume of purchases.

Number of cars purchased - 2013

• Includes Franchising

78,779

18,8669,950

*

Source: each company website

Localiza’s share in the internal sales of the major OEMs - 2013

2.6%

Raisingmoney

Buyingcars

Renting CarsSellingCars

Localiza Unidas Locamerica

108

158

55

13

The Company is present in 242 cities where the other largest networks do not operate.

Competitive advantages: renting cars

Know HowBrand Brazilian distribution

# o

f b

ran

ch

es

# o

f cit

ies

Source: Brand Analytics and each company website (Localiza and Peers, as of September, 2014)

470

321

Raisingmoney

Buyingcars

Renting CarsSellingCars

Localiza Unidas Hertz Avis

341

99 78 42

14

Sales to final consumer

Competitive advantages: selling cars

Selling directly to final consumer reduces depreciation.

Cars available for sale are used during peaks of demand.

Raisingmoney

Buyingcars

Renting CarsSellingCars

Buffer: additional fleet

7.3%8.6%

6.3% 6.0%8.0%

16.9% 17.1% 16.1% 16.5% 17.5%

2010 2011 2012 2013 2014

15

ROIC versus cost of debt after taxes

9.6p.p. 8.5p.p. 9.5p.p.9.8p.p.

ROIC increase was enough to offset higher basic interest rate.

ROIC Cost of debt after taxes

10.5p.p.

ActivitiesCar and Fleet

rentalsCar and Fleet

rentals*Fleet rental*

Machinery, heavy

equipmentsand fleetrentals

Logistics, Car and Fleet and

rentals*Car Rental*

Fleet (End of Period) 125,224 40,296 30,291 25,326 40,807 11,695

Net Debt/EBITDA 1.4x 2.0x 3.2x 3.7x 4.2x 7.4x

Net Debt/ Equity 0.8x 0.9x 2.0x 8.5x 3.3x 1.9x

Industry overview

Source: ABLA, Companies’ Financial Statements.*9M14**Ouro Verde: Net Fleet Rental Revenue; Ouro Verde: EBITDA excludes selling of Martini Meat.

16

ROIC 2014ROE 2014

17

1. Company overview

2. Main business divisions

� Car Rental

� Fleet Rental

� Seminovos

3. Consolidated

Appendix: Earnings release 4Q14

Agenda

18

Car Rental overview

63.9%Compact cars

2014 Fleet composition

77,573 cars

36.1%Others

Corporate fleet size

65,08670,717 77,573

2012 2013 2014

Car rental distribution (Brazil)

415

449

474 479 476

2010 2011 2012 2013 2014

7082 89 90

2010 2011 2012 2013

19

Drivers

Air traffic passengers - million

Source: BCB

151180 200

240260 300

350380

415465

510545

622678

51%

38%37% 35%

31%27%

22% 20% 18% 16% 15% 15% 13% 12%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Monthly minimum salary (R$) Daily rental price over minimum salary (%)

Car rental affordability

Investiments per industry(In billions of Reais)

Source: ABLA 2013 Yearbook, Bradesco and Company’s loyalty program.

Source: Exame Magazine, December 2014. Source: ANAC

4 million

84 millionAdult population(age > 20 years)

Class A+B+C

15 millionAdult population(age > 20 years)

Class A+B

Opportunity: Low penetration in leisure trips

Penetration: 4.8% on A, B and C classes.

20Source: RAIS 2012 and each company’s website (August 2014)

Off-airport market is still fragmented.

Airport locations Off-airport locations

Car Rental Locations in Brazil

39.5%

7.5%8.2%

6.5%

2.9%

1.9%

33.5%

21

31.8%

4.1%

7.4%

4.5%3.1%1.5%

47.5%

47.0%

35.9%

Others

Movida

Avis

Hertz Unidas

Franchising

Franchising

Others

MovidaAvis Hertz

Unidas

2013 Market Share – Car Rental

Rental RevenuesR$3,055.8 million

Fleet222,554 cars

Source: Euromonitor, ABLA and Companies’ Financial Statements and estimates.

Sources: EUROMONITOR from 2008 to 2012 and ABLA for 2013

22

Market Share Evolution – Car Rental

33.2%

29.5%

37.8%40.5% 41.8%

47.0%

5.2% 6.2% 6.9% 6.1% 6.1% 8.2%

2.9% 2.5% 2.9% 2.9% 2.8%2.9%

2.6% 2.3% 2.6% 2.5% 2.5% 6.5%

56.1%

59.5%

49.8% 48.0%46.8%

35.4%

2008 2009 2010 2011 2012 2013

Localiza

HertzAvis

Unidas

Others

Based on Revenues

23

1. Company overview

2. Main business divisions

� Car Rental

� Fleet Rental

� Seminovos

3. Consolidated

Appendix: Earnings release 4Q14

Agenda

24

Number of clients

Fleet Rental overview

35.0%Compact cars

2014 Fleet composition

34,312 cars

65.0%Others

729760 798

2012 2013 2014

End of period fleet

32,104 32,809 34,312

2012 2013 2014

25Source: ABLA, Datamonitor and Localiza

Low penetration of rented fleet in Brazil.

Rented fleet penetration

Corporate fleet:

4,000,000*

Rented fleet:

307,336

32,809

Brazilian MarketWorld

8.1% 8.9%13.3%

16.5%

24.5%

37.4%

46.9%

58.3%

Drivers

*Localiza estimates

2013 Market Share – Fleet Rental

26

Rental RevenuesR$3,464.2 million

Fleet307,336 cars

Source: Euromonitor for revenue , ABLA for fleet and Companies’ Financial Statements.

Locamerica

10.3%

Unidas

9.1%

Ouro Verde

4.9%

18.4%

Others57.2%

11.3%

Unidas7.1%

Locamerica10.3%

JSL10.0%

Ouro Verde6.0%

ALD 4.8%

Outros , 50.5%

27

1. Company overview

2. Main business divisions

� Car Rental

� Fleet Rental

� Seminovos

3. Consolidated

Appendix: Earnings release 4Q14

Agenda

28

Efficiency gain on car sales

# of points of sale

Car sales – operating data

5566

73 74 75

2010 2011 2012 2013 2014

47,28550,772

56,66462,641

70,621

2010 2011 2012 2013 2014

# Number of cars sold (quantity)

29Source: O Estado de São Paulo newspaper, as of 08/16/13 (based on researches of Sindipeças) and Globo website, as of 03/10/2014.

Used car sales drivers: affordability and penetration

# of inhabitants per car 2012 – (Brazil 2013)# of inhabitants per car - Brazil

4.4

4.2

4.0

3.6

2.1

2.0

1.9

1.8

1.2

Brazil

Argentina

Russia

South Korea

Japan

France

Germany

United Kingdon

USA

5.9 5.5 5.24.4

2010 2011 2012 2013

Affordability to buy cars – Public Price of the most basic Gol

300 350 380

415 465 510

545 622

678 724

84

71 69

61 55

51

49 43 43 43

-

10

20

30

40

50

60

70

80

90

-

100

200

300

400

500

600

700

800

900

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Minimum wage (R$) Minimum wages to buy a new car

8.4 8.9 9.0 9.410.1

3.3 3.5 3.6 3.6 3.3

30

2.5x 2.5x

2010 2011 2012 2013 2014

2.6x

Brazilian car market: new x used car market and affordability

New cars

Used cars

Source: FENABRAVE (Autos + light commercial)

2.6x

Total market of 13.4 million cars.

3.1x

31

2013 Up to 2 years409,121

2014 Brand new3,328,716

2014 Used cars10,051,296

0.7% 1.8% 13.9%

Car sales – operating data

Source: Anfavea and Fenabrave

Examples• Retailers• “Loja do carro”

• Dealers• Fiat, VW, Ford,

GM most successful

• Auto Brasil

• Rental operators• Locamerica, Hertz

• “Auto malls” and “Cidade do automóvel”

Points of sale • 45,600 (Fenauto) • 3,714 (Anfavea)• 25 (Unidas,

Locamerica, Avis and Hertz website).

• 71 (Fenauto)

Main players

32

1. Company overview

2. Main business divisions

� Car Rental

� Fleet Rental

� Seminovos

3. Consolidated

Appendix: Earnings release 4Q14

Agenda

802.2980.7 1,093.7 1,163.5 1,284.4

310.4 331.2

2010 2011 2012 2013 2014 4Q13 4Q14

33

Net Revenues (R$ million)

# Daily Rentals (thousands)

Car Rental Division

The net revenues increased 10.4% in 2014

10,734 12,794 13,749 14,242 15,416

3,714 3,898

2010 2011 2012 2013 2014 4Q13 4Q14

234 247 272 286 304

181 202 202 193 17261 47 50 63 64

2010 2011 2012 2013 2014

34

Car Rental network evolution

18 new owned rental locations were added to the network in 2014.

# of car rental locations (Brazil and abroad)

Localiza´s branches - Brazil Franchisees´ branches - Brazil Franchisses´ branches - abroad

476 496 524 542 540

+18

35

Utilization rate evolution – Car Rental Division

Higher utilization rate reduced the invested capital in fleet.

69.1%

68.9%

70.8%

66.8%

69.9%

2010 2011 2012 2013 2014

361.1 455.0

535.7 575.9 571.9

142.9 146.7

2010 2011 2012 2013 2014 4Q13 4Q14

8,0449,603

10,601 10,844 10,363

2,669 2,644

2010 2011 2012 2013 2014 4Q13 4Q14

36

Net Revenues (R$ million)

# Daily Rentals (thousands)

Fleet Rental Division

The contracted revenue increased 25% in 2014 and reached R$808.3 million.

1,910.4 1,776.5 1,618.8

2,026.2

2,483.2

553.8 877.4

1,321.9 1,468.1 1,520.0 1,747.3

2,018.2

505.6 553.0

2010 2011 2012 2013 2014 4Q13 4Q14

Purchases (includes accessories) Used car sales net revenues

Cars purchased Cars sold

37

Net investmentFleet Expansion* (quantity)

Around 7,600 cars were acquired in advance in 4Q14 due the IPI tax reinstatement in 2015.

Net Investment in Fleet (R$ million)

65,934 59,950 58,655 69,744

79,804

18,588 27,066

47,285 50,772 56,644

62,641 70,621

17,999 18,468

2010 2011 2012 2013 2014 4Q13 4Q14

9,178 2,0117,10318,649

589

308.498.8

588.5 278.9

* It does not include theft / crashed cars.

48.2

8,598

324.4

9,183

465.0

38

End of period fleetQuantity

In the Car Rental division, around 7,600 cars were acquired in advance in 4Q14, due the IPI tax reinstatement in 2015.

By the end of 2014, 1,942 cars in the Fleet Rental division were being prepared to be delivered to the clients.

61,445 64,688 65,086 70,717 77,573

26,61531,629 32,104

32,80934,31210.652

12,958 14,54514,233

13,339

2010 2011 2012 2013 2014

98,712109,275 111,735

117,759125,224

Car Rental Fleet Rental Franchising

1,175.3 1,450.0 1,646.7 1,758.9 1,874.0

458.3 482.2

1,321.9 1,468.1 1,520.0 1,747.3

2,018.2

505.6 553.0

2010 2011 2012 2013 2014 4Q13 4Q14

39

Consolidated net revenuesR$ million

11.0% increase of consolidated net revenues in 2014.

Rental Used car sales

2,918.1

3,506.23,892.2

2,497.2

3,166.7

963.9 1,035.2

40

Consolidated EBITDA R$ million

EBITDA grew 5.8% in the 2014.

649.5821.3 875.6 916.5 969.8

236.0 237.6

2010 2011 2012 2013 2014 4Q13 4Q14

(*)From 2012 on, accessories and freight of new cars have been accounted directly in the cost line, impacting EBITDAbut reducing depreciation costs.

Divisions 2010* 2011* 2012 2013 2014 4Q13 4Q14

Car Rental 45.3% 46.9% 40.9% 36.8% 38,7% 37.3% 37.1%

Fleet Rental 68.0% 68.6% 66.4% 65.5% 60.0% 64.7% 55.5%

Rental Consolidated 52.3% 53.8% 49.3% 46.5% 45.3% 46.0% 42.6%

Used Car Sales 2.6% 2.8% 4.2% 5.7% 6.0% 4.9% 5.8%

**IPI Effect

3,509.7 4,133.0

4,311.3

4,592.3 4,202.1 4,626.0 1,096.9**

2010 2011 2012 2013 2014 4Q14

1,536.0 1,683.9

1,895.8

1,452.4 1,270.0 1,136.5

2,076.6**

2010 2011 2012 2013 2014 4Q14

41

Average depreciation per carin R$

3,972.4

5,408.2

Car Rental

Fleet Rental

*Annualized

*

*

*Annualized

250.5291.6

240.9

384.3 410.6

90.0 102.2

2010 2011 2012 2013 2014 4Q13 4Q14

42

Consolidated net incomeR$ million

* Pro forma 2012 net income excluding additional depreciation related to the IPI tax reduction, net of income tax.

336.3 *

Net income increased 6.8% in 2014.

43

Free cash flow - FCF(*) Without the technical discount up to 2010

Free cash flow - R$ million 2010 2011 2012 2013 2014O

pera

tio

ns

EBITDA 649.5 821.3 875.6 916.5 969.8

Used car sale revenue, net from taxes (1,321.9) (1,468.1) (1,520.0) (1,747.3) (2,018.2)

Depreciated cost of cars sold (*) 1,203.2 1,328.6 1,360.2 1,543.8 1,777.0

(-) Income tax and social contribution (57.8) (83.0) (100.9) (108.5) (113.1)

Change in working capital 54.5 (83.9) 37.1 2.9 (27.1)

Cash provided by rental operations 527.5 514.9 652.0 607.4 588.4

Cap

ex -

Ren

ew

als

Used car sale revenue, net from taxes 1,321.9 1,468.1 1,520.0 1,747.3 2,018.2

Fleet renewal investment (1,370.1) (1,504.5) (1,563.3) (1,819.7) (2,197.7)

Net investment for fleet renewal (48.2) (36.4) (43.3) (72.4) (179.5)

Fleet renewal – quantity 47,285 50,772 56,644 62,641 70,621

Investment, other property and intangibles investments (50.6) (59.9) (77.8) (47.5) (46.3)

Free cash flow before growth, new HQ and interest 428.7 418.6 530.9 487.5 362.6

Cap

ex -

Gro

wth

Fleet growth investment (540.3) (272.0) (55.5) (209.4) (286.8)

Change in accounts payable to car suppliers 111.3 32.7 (116.9) 89.7 334.4

Fleet growth (429.0) (239.3) (172.4) (119.7) 47.6

Fleet increase / (reduction) – quantity 18,649 9,178 2,011 7,103 9,183

Free cash flow after growth, and before interest and before new headquarters (0.3) 179.3 358.5 367.8 410.2

Cap

ex

–H

Q

Investment in the construction of the new headquarters (0.5) (3.1) (2.4) (6.5) (55.7)

Marketable securities – new headquarters - - - - (92.6)

New headquarters construction (0.5) (3.1) (2.4) (6.5) (148.3)

Free cash flow before interest (0.8) 176.2 356.1 361.3 261.9

44

The strong cash generation allowed net debt to remain stable, even after investments in the new headquarters.

(*) Before new headquarters capex

Changes in net debt R$ million

1,281.1 1,363.4 1,231.2 1,332.8 1,322.3

2,446.7 2,681.7

2,547.6 2,797.9

3,296.3

2010 2011 2012 2013 2014

45

Debt - ratios

Net debt vs. Fleet value

BALANCE AT THE END OF PERIOD 2010(*) 2011 2012 2013 2014

Net debt / Fleet value 52% 51% 48% 48% 40%

Net debt / EBITDA 2.0x 1.7x 1.4x 1.5x 1.4x

Net debt / Equity 1.4x 1.2x 0.9x 1.0x 0.8x

EBITDA / Net financial expenses 5.0x 4.6x 6.3x 8.3x 6.4x

(*) 2010 ratios based on USGAAP financial statements

Net debt Fleet value

Comfortable debt ratios.

-248.6

555.9 511.7

221.0

544.5 445.0

147.5

2014 2015 2016 2017 2018 2019 2020 2021

46

Debt maturity profile (principal)R$ million

Total cash of R$1,482.8 million if we consider the R$92.6 million in marketable securities investment for the new headquarters.

Cash

1,390.2

1,316.2

As of December 31, 2014

47

Localiza Level I ADR

�Ticker Symbol: LZRFY

�CUSIP: 53956W300

�ISIN: US53956W3007

�Ratio: 1 Common Share : 1 ADR

�Exchange: OTC

�Depositary bank: Deutsche Bank Trust Company Americas

�ADR broker helpline: +1 212 250 9100 (New York)

+44 207 547 6500 (London)

�E-mail: [email protected]

�ADR website: www.adr.db.com

�Depositary bank’s local custodian: Banco Bradesco S/A, Brazil

48

Disclaimer

Disclaimer

The material presented is a presentation of general background information about LOCALIZA as of the date of the presentation. It is information in summary form and doesnot purport to be complete. It is not intended to be relied upon as advice to potential investors. This presentation is strictly confidential and may not be disclosed to anyother person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of theinformation presented herein.

This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities ExchangeAct of 1934. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-lookingstatements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of LOCALIZA and itssubsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.

Although LOCALIZA believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available toLOCALIZA’s management, LOCALIZA cannot guarantee future results or events. LOCALIZA expressly disclaims a duty to update any of the forward-looking statement.

Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act of 1933. Any offering of securitiesto be made in the United States will be made by means of an offering memorandum that may be obtained from any underwriters we may appoint in connection with anoffering of securities in future. Such offering memorandum will contain, or incorporate by reference, detailed information about LOCALIZA and its business and financialresults, as well as its financial statements.This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything

contained herein shall form the basis of any contract or commitment whatsoever.

Website: www.localiza.com/ir E-mail: [email protected] Phone: 55 31 3247-7024

Roberto MendesCFO and IR

Nora LanariHead of IR

Eugênio MattarCEO