Localiza completa 3 q11 eng (nova versao)

49
1 December / 2011

description

 

Transcript of Localiza completa 3 q11 eng (nova versao)

Page 1: Localiza completa 3 q11 eng (nova versao)

1December / 2011

Page 2: Localiza completa 3 q11 eng (nova versao)

2

1.The Company

2.Drivers and opportunities

3.Competitive advantages

4.Financials

5.2012 Brazilian Macroeconomic scenario

Agenda

Page 3: Localiza completa 3 q11 eng (nova versao)

3

Company: integrated business platform

This integrated business platform gives Localiza flexibility and superior performance.

Synergies:bargaining powercost reduction cross selling

12,285 cars195 locations in Brazil 46 locations in South America32 employees

75.4% sold to final consumer61 stores822 employees

57,077cars2.7million clients240 locations3,810 employees

30,732 cars693 clients293 employees

Based on the 3Q11

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Company: stable management

Salim Mattar – 38y

Eugênio Mattar – 38y

Gina Rafael – 30y

João Andrade – 7y

Marco Antônio Guimarães – 21y

Bruno Andrade – 19y

BOARD OF DIRECTORS

CEO

COO

Car Acquisition

Legal

Localiza has a lean and efficient structure.

The succession process is already planned.

Roberto Mendes – 26y

Financial ITHumanResources Administration

Daltro Leite – 26y

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Pricing strategy

Company: managing assets

Targeted spread

Funding

Equity

Cash to renew the fleet

Assets (cash)

Profitability comes fromrental divisions

Ass

ets

(car

s)

Debt

Flexible and liquid assets.

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Company: financial cycle – car rental

Net car sale revenue$25.5

$26.6Car acquisition

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

1-year cycle

Revenue

Spread9.8p.p.

Total1 year

R$ % R$ % R$Revenues 19.5 100.0% 27.9 100.0% 47.4 Cost (8.2) -42.2% (8.2) SG&A (2.8) -14.5% (2.3) -8.4% (5.2) Net car sale revenue 25.5 91.6% 25.5 Book value of car sale (24.7) -90.0% (24.7)

EBITDA 8.5 43.4% 0.8 2.9% 9.3 Depreciation (vehicle) (1.5) -5.5% (1.5) Depreciation (non-vehicle) (0.4) -1.8% (0.1) (0.5) Interest on debt (2.0) -7.2% (2.0) Tax (2.4) -12.1% 0.7 2.5% (1.6)

NET INCOME 5.8 29.5% (2.2) -7.7% 3.6 NOPAT 5.1 ROIC 17.7%Cost of debt after tax 7.9%

Car Rental Seminovosper operating car per operating car

*

* Investment in cars and PP&E (8%)

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Company: financial cycle – fleet rental

Total2 anos

R$ % R$ % R$Revenues 32.7 100.0% 29.0 100.0% 61.7 Cost (9.4) -28.9% (9.4) SG&A (1.8) -5.6% (2.2) -7.7% (4.1) Net car sale revenue 26.8 92.3% 26.8 Book value of car sale (26.5) -90.0% (26.5)

EBITDA 21.4 65.6% 0.3 1.0% 21.7 Depreciation (vehicle) (7.0) -24.2% (7.0) Depreciation (non-vehicle) (0.1) -0.2% (0.1) Interest on debt (3.8) -12.9% (3.8) Tax (6.2) -19.0% 3.1 10.8% (3.1)

NET INCOME 15.2 46.4% (7.3) -25.3% 7.8

NET INCOME per year 7.6 46.4% (3.7) -25.3% 3.9 NOPAT (annualized) 5.1 ROIC 15.2%Cost of debt after tax 7.9%

Fleet Rental Seminovosper operating car per operating car

33.8Car acquisition

Net car sale revenue 26.8

1 2 3 4 5 20 21 22 23 24

2-year cycle

Expenses, interest and tax

Revenue

Spread7.3p.p.

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Average growth of roughly 25% p.a. in the last years.

Company: growth and profitability track record Revenues consolidated

EBITDA consolidated

331.4 408.4 537.4 655.0 842.9 898.5 1,175.3 1,409.9303.0 446.5

588.8850.5

980.8 922.4

1,321.91,450.7

515.7457.4402.7296.1234.1225.9212.9

1997 1999 2001 2003 2005 2007 2009 2011annualized

CAGR: 24.0%

CAGR: 16.5%

634.4854.9

1,126.21,505.5

1,823.7 1,820.9

2,497.22,860.6

Consolidated Rentals Used car sales

CAGR: 23.2%

4.3

42 62 85.2 134.3 154 149.9 152.1 197.8278.1 311.4

403.5504.1 469.7

649.5804.0

1997 1999 2001 2003 2005 2007 2009 2011annualized

CAGR: 23.9%CAGR: 23.1%

-0.6 7.55.7 3.2 4.0 6.1 5.2

1.9Average

1.12.71.34.30.30.03.4GDP 3.3

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Rental revenues growth elasticity x GDP

2005 2006 2007 2008 2009 2010

5.5x

Localiza

GDP

Sector

2.8x

Company: GDP elasticity

The drivers combined with Localiza’s competitive advantages resulted in a growth above the industry level.

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18.9% 20.6% 20.8% 21.8% 21.4% 23.5%

2005 2006 2007 2008 2009 2010

Company: market share - fleet

Consolidated

Source: ABLA 2011 yearbook

37.5% 12.5%

Car Rental division Fleet Rental division

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2011 Valor 2008th Company in growth and profitability

2011 Maiores e Melhores do Transporte (Biggest & Best of Transportation)

The best Company of the vehicle rental sector

Institutional Investor’s ranking:

Company: recognitions and rewards

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1.The Company

2.Drivers and opportunities

3.Competitive advantages

4.Financials

5.2012 Brazilian Macroeconomic scenario

Agenda

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Drivers and growth opportunities

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R$456 bn to be invested.

Car rental drivers: investments

Source: EXAME yearbook, 2011-2012

18.4%

InvestedTo be invested

19.5%

R$174.6 bn

12.3%

R$150.4 bn

20.8%

R$85.8 bn

R$28.7 bn

18.7%

R$16.8 bn

154137

106

38

7 6 35

Oil/gas

Transp

ortatio

nElec

tricit

yWate

r/sew

age

Teleco

mmunicatio

n

Arenas

OthersHousin

g

Investments by sectorInvestments in Brazil

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Income increase and stable daily rental rates increased car rental affordability.

Car rental drivers: income and affordability

GDP per capita (R$ thousands)

151

260

465510

240180 200

350415

380300

18% 16%

31%

35%

15%

37%38%

51%

22% 20%27%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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

Car rental affordability

Source: Exame magazine (Dec/2010)

6.9 7.5 8.4 9.5 10.7 11.7 12.8 14.216.0 16.6

19.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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Strong domestic drivers leads to higher volumes.

Source: FGV, BCB, Infraero, Gol, Abecs and Exame (Dec/2010)

Car rental drivers: consumption

71128

154

2003 2009 2010

80.3% 20.3%

Air traffic passengers - million

15

45 51

2003 2009 2010

200.0% 13.3%

Credit card holders - million

1421

27

2003 2009 2014e

50.0% 28.6%

A and B classes - million

6698

113

2003 2009 2014e

48.5%

15.3%

Middle class - million

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17Source: Each company website (October, 2011)

Car rental opportunities: consolidation

Off-airport market is still fragmented.

Avis32

Unidas70

Localiza336 Hertz

83

Others2004

Outras22

Avis35

Unidas27

Localiza99

Hertz36

Airport locations Off-airport locations

Car rental locations in Brazil

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Network expansion

Last 12 months* Branches

Total 39

Owned 16

Franchised 23

Localiza’s network is still being expanded.

Brazilian distribution

# of locations in Brazil

279 312 346 381 415 435

254

2005 2006 2007 2008 2009 2010 9M11

Car rental strategy: organic growth

*as of September, 2011

Page 19: Localiza completa 3 q11 eng (nova versao)

19Source: ABLA and Datamonitor

Fleet rental drivers: outsourcing trend

Less than 50% of targeted fleet is rented.

Outsourced fleet penetration

Corporate fleet:4,200,000

Targeted fleet:500,000

Rented fleet:232,000

30,732

Brazilian Market World (%)

5.48.9

13.316.5

24.5

37.4

46.9

58.3

Brazil

Poland

Czech

Repu

blic

German

y

France

Spain Uk

Holland

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Income increase and credit availability are the major drivers for car sales.

Source: Bradesco, ANFAVEA, PIB per capita: IPEADATA.

Used car sales drivers: affordability and penetration

Car purchase affordability

6.5

3.6

1.8

1.8

1.7

1.5

1.2

Brazil

Mexico

Germany

UK

France

Italy

USA

# of inhabitants per car (2009)

148 128115

97 104 9380

56586875

151 180 200240 260 300

350

510465

380415

0

2 0

4 0

6 0

8 0

1 0 0

1 2 0

1 4 0

1 6 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

Number of minimum w ages to buy a new car Monthly minimum salary (R$)

8.0 7.9

7.4

6.96.5

2005 2006 2007 2008 2009

# of inhabitants per car - Brazil

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3,329,1703,009,4822,671,3382,342,0591,830,4021,620,657

2005 2006 2007 2008 2009 2010

8,429,309

7,071,5257,016,5766,743,699

7,114,870 7,260,054

4.3x 3.7x 3.0x 2.7x2.3x

2.5x

Brazilian car market: new cars x used cars

New cars X used cars

Source: FENABRAVE (Autos + light commercial)

Used car market is currently 2.5x the new car market.

New cars

Used cars

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0km SeminovosUsed Seminovos 3 years old Seminovos

1.4% 4.4%

Up to 3 yearsUp to 3 years1,093,2811,093,281

0KM0KM3,329,1703,329,170

0.6%

UsedUsed8,429,3098,429,309

Brazilian car market : 2010 market share

Source: Fenabrave 2010

Localiza used cars x Car market

Used cars sold: 47,285

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Brazilian car market: monthly sale per store

Localiza Seminovos monthly sale per store is in line with market average.

10996 91 90 84 84 81

48

FIAT VW FORD GM SEMINOVOS* SECTOR2010**

RENAULT PEUGEOT

Monthly sale / lots*

Source: Anfavea (National OEM’s Association); number of dealers from each OEM association website (nov/11 )

* Average sales per lots (excluding auto malls – 10 stores)** Total sales divided by the number of dealers

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The network is being expanded to support rentals’ growth.

Brazilian distribution New lots

Status* Points of sale

Contract signed 3

In construction 6

Negotiation and prospection 11

# of points of sale

26 32 3549 55 61

13

2005 2006 2007 2008 2009 2010 9M11

Used car sales strategy: network expansion

*as of September, 2011

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61% 49% 57% 58%

39% 51% 43% 42%

2010 1Q11 2Q11 3Q11

3,940 3,860

4,159

4,545

2010 1Q11 2Q11 3Q11

Used car sales: sold cars evolution

The increase on sales was supported by the opening of new points of sale.

Sales profile

Financed In cash

Monthly average of sold cars

The macro prudential measures impacted the sales profile in the 1Q11.

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1.The Company

2.Drivers and opportunities

3.Competitive advantages

4.Financials

5.2012 Brazilian Macroeconomic scenario

Agenda

Page 27: Localiza completa 3 q11 eng (nova versao)

27

Raising money

Renting cars Selling carsBuying

cars

Cash to renew the fleet or pay debt

$

$

Profitability comes from rental divisions

Competitive advantages: 38 years of experience in managing assets

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Fiat25.6%GM

37.0%

Renault3.1%

Ford4.3% Others

2.8%

VW27.2%

2.8%

Better conditions due to higher volumes

Competitive advantages: buying cars

Localiza announced the purchase of 100,000 cars for 2H11 and 2012.

Localiza’ share in national sales of the three largest automakers in 2010: GM, FIAT, VW

Purchases by brand in 2010

Renting carsRaisingmoney

Buyingcars

Sellingcars

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The Company is present in 226 cities where the other largest networks do not operate.

Competitive advantages: renting cars

Know HowBrand Brazilian distribution

119

96

67

298

64 72 46

# of

bra

nche

s#

of c

ities

435

282

Localiza Hertz Unidas Avis

Source: Each company website (October, 2011)

Renting carsRaisingmoney

Buyingcars

Sellingcars

Page 31: Localiza completa 3 q11 eng (nova versao)

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Sales to final consumer

Competitive advantages: selling cars

Buffer: additional fleet

Selling directly to final consumer reduces depreciation.

Cars available for sale are used by the car rental division during peaks of demand.

Renting carsRaisingmoney

Buyingcars

Sellingcars

Page 32: Localiza completa 3 q11 eng (nova versao)

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1.The Company

2.Drivers and opportunities

3.Competitive advantages

4.Financials

5.2012 Brazilian Macroeconomic scenario

Agenda

Page 33: Localiza completa 3 q11 eng (nova versao)

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Financials: Car Rental Division

Average rental rate increased due to a change in the business mix and better negociations.

# daily rentals (thousand)

Net revenues (R$ million)

3,4114,668

5,7937,940 8,062

10,734

7,7209,470

2,863 3,227

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

CAGR: 25.8%22.7%

12.7%

241.8208.7

714.2566.6

802.2585.2565.2

428.0346.1

258.6

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

CAGR: 25.4%26.1%

15.9%

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Financials: Fleet Rental Division

Growth in rental rate derived from the increase in basic interest rate.

# daily rentals (thousand)

Net revenues (R$ million)

117.4142.0184.0 219.8

268.4 303.2361.1

260.2332.9

92.9

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

CAGR: 20,5%

27,9%

26,4%

3,3514,188

5,1446,437 7,099

8,044

5,8627,086

2,046 2,461

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

CAGR: 19.1%

20.9%

20.3%

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690.0930.3 1,060.9

1,335.3 1,204.2

1,910.4

1,199.6

446.5 588.8850.5 980.8 922.4

1,321.9939.6 1,119.81,088.0

2005 2006 2007 2008 2009 2010 9M10 9M11

690.0930.3 1,060.9

1,335.3 1,204.2

1,910.4

1,199.6

446.5 588.8850.5 980.8 922.4

1,321.9939.6 1,119.81,088.0

2005 2006 2007 2008 2009 2010 9M10 9M11

Financials: net Investment

The largest portion of the CAPEX is funded by used car sales.

Fleet increase * (quantity)

7,342 10,346 7,957

18,649

9,930 8,642

Purchased cars Sold cars

243.5 341.5210.4

354.5 281.8

588.5

Purchases (accessories included) Used car sales revenues

Net investment (R$ million)

26,10533,520 38,050

44,211 43,161

18,763 23,17430,093 34,281 34,519

38,16040,607

65,934

37,69447,285

34,486

2005 2006 2007 2008 2009 2010 9M10 9M11

6,121 466

260.0 31.8

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Financials: utilization rate and average operating fleet age

Fleet is adjusted according to demand.

66.2% 69.9% 68.2% 68.9% 69.7%66.3%74.1%

6.9 6.6 6.3 5.5 6.3 6.5 7.3

0 .0 %

1 0 .0 %

2 0 .0 %

3 0 .0 %

4 0 .0 %

5 0 .0 %

6 0 .0 %

7 0 .0 %

8 0 .0 %

9 0 .0 %

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

Utilization rate Average operating fleet age

Elections effect

Utilization rate and average operating fleet age

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31,373 35,686 39,112 47,517 61,445 50,450 57,07711,76214,630 17,790 23,403

22,77826,615

25,30530,732

24,103

2005 2006 2007 2008 2009 2010 9/30/2010 9/30/2011

Financials: end of period fleet

The 15.9% growth in the fleet is in line with the rental volume increase.

End of period fleet (quantity)

CAGR: 19.7%

35,86546,003 53,476

62,51570,295

88,060

Car rental Fleet rental

87,80975,755

15.9%

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Financials: consolidated net revenuesR$ million

Rental and Seminovos’ increase in volumes and prices resulted in higher revenues.

408.4 537.4 655.0 842.9 898.5 1,175.3835.5 1,057.4

304.6 362.9

446.5588.8

850.5980.8 922.4 939.6

1,088.0

354.2 394.6

1,321.9

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

Rentals Seminovos

CAGR: 23.9%

854.91,126.2

1,505.51,823.7 1,775.11,820.9

2,145.42,497.2

658.8 757.5

20.9%

15.0%

19.1%26.6%

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277.9 311.3403.5

504.1 469.7

649.5

461.3603.0

178.7 216.2

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

Financials: EBITDA R$ million

The 30.7% growth in the EBITDA in the 9M11 was above the rental revenues increase.

CAGR: 18.5%

Divisions 2005 2006 2007 2008 2009 2010 9M10 9M11

45.9%

67.4%

52.7%

2.3%

46.9%

68.9%

53.8%

3.1%

45.3%

68.0%

52.3%

2.6%

45.9%

69.1%

53.3%

5.6%

3Q10 3Q11

50.4%

72.1%

Rentals consolidated 53.6% 52.9% 54.5% 51.1% 54.8% 57.5%

1.9%

48.7%

68.9%

3.4%

41.9%

68.7%

1.1%

43.4%

71.4%

4.6%

46.0%

71.3%

5.5%

Car rental 47.5%

Fleet Rental 65.5%

Used car sales 13.2%

30.7%

21.0%

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... it should increase to 3Q11 level due to higher costs to sell our used cars.

Financials: average depreciation per carR$

Hot used car market

Financial crisis effectCurrent market conditions

1,536.0 1,619.8 1,578.5

332.9

2,546.0 2,577.0

939.1492.3

2005 2006 2007 2008 2009 2010 9M10 9M11

* Annualized

* *

1,318.01,580.51,492.3

1,251.9

1,942.5 1,993.2

1Q10* 1Q11* 2Q10* 2Q11* 3Q10* 3Q11*

Depreciation evolution - per year

YTD, average depreciation per car remained stable, but...

Depreciation evolution - per quarter

* Annualized

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Financials: average depreciation per carR$

3,509.7 3,306.04,080.9

2,395.8

5,083.14,371.7

2,383.32,981.3

2005 2006 2007 2008 2009 2010 9M10 9M11

* Annualized

* *

3,254.43,693.9

4,241.8 3,990.6

2,989.4

4,020.8

1Q10* 1Q11* 2Q10* 2Q11* 3Q10* 3Q11*

Hot used car market

Financial crisis effect

Depreciation evolution - per year

Depreciation evolution - per quarter

* Annualized

The fleet renewal after the end of the tax exemption resulted in higher depreciation in 2011.

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Financials: consolidated net incomeR$ million

Reconciliation EBITDA x net income 2009 2010 Var. R$ 9M10 9M11 Var. R$

156.0 440.0

21.3

461.3

(104.3)

(15.4)

(88.8)

(71.7)

181.1

23.8

129.3569.3

33.7

603.0

(143.5)

(17.4)

179.8

(137.8)

(91.4)

12.4

141.7

(39.2)

(2.0)

26.0

(49.0)

(19.7)

212.9

(0.1)

(17.2)

31.8

(54.3)

134.2

459.1

10.6

469.7

(172.3)

(21.0)

(112.9)

(47.2)

116.3

615.1

34.4

649.5

(146.3)

(21.1)

(130.1)

(101.5)

250.5

3T10 3T11 Var. R$

EBITDA – Rentals and franchising 166.8 208.6 41.8

(4.3)

EBITDA Consolidated 178.7 216.2 37.5

(16.0)

0.1

(18.4)

(2.8)

0.4

EBITDA – Used car sales 11.9 7.6

Cars depreciation (37.9) (53.9)

Other property and equipment depreciation (5.1) (5.0)

Financial expenses, net (31.4) (49.8)

Income tax and social contribution (29.4) (32.2)

Net income 74.9 75.3

75.374.9

212.9181.1

250.5

116.3127.4190.2

138.2106.5

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

0.5%

17.6%

2011 results were impacted mainly due to higher interest rate.

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Financials: free cash flow - FCF

(*) without technical discount deduction

Free cash flow - R$ million 2005 2006 2007 2008 2009 2010 9M11

469.7 649.5

(1,321.9)

1,203.2

(57.8)

54.5

527.5

1,321.9

(1,370.1)

(48.2)

(51.1)

428.2(540.3)

111.3

(0.8)

18,649

(922.4)

603.0

(1,088.0)

974.5

(57.3)

(59.4)

372.8

1,088.0

(1,106.1)

(18.1)

(37.4)

317.3(13.7)

(195.8)

107.8

Fleet increase - quantity 7,342 10,346 7,957 9,930 8,642

855.1

(49.0)

(11.5)

341.9

922.4

(947.9)

(25.5)

(21.0)

295.4(241.1)

241.1

295.4

466

504.1

(980.8)

874.5

(52.8)

(44.8)

300.2

980.8

(1,035.4)

(54.6)

(39.9)

205.7 (299.9)

(188.9)

(283.1)

EBITDA 277.9 311.3 403.5

Used car sales net revenues (446.5) (588.8) (850.5)

Depreciated cost of used car sales (*) 361.2 530.4 760.0

(-) Income tax and social contribution (32.7) (42.7) (63.4)

working capital variation (24.2) (4.8) 13.3

Cash provided before capex 135.7 205.4 262.9

Used car sales net revenues 446.5 588.8 850.5

Capex of car - renewal (496.0) (643.3) (839.0)

Net capex for renewal (49.5) (54.5) 11.5

Capex – other property and equipment, net (28.0) (32.7) (23.7)

Free cash flow before growth and interest 58.2 118.2 250.7 Capex of car - growth (194.0) (287.0) (221.9)

Change in accounts payable to car suppliers (capex) (25.5) 222.0 (51.0)

Free cash flow after growth and before interest (161.3) 53.2 (22.2)

Strong cash flow generation before growth and interest expenses.

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Financials: debt – ratiosR$ million

Comfortable debt ratios.

End of period balance 2005 2006 2007 2008 2009 2010

177% 191%

2.0x

1.4x

EBITDA / Net financial expenses 3.3x 4.8x 5.4x 3.8x 4.2x 5.0x 4.4x

2.3x

1.5x

140%

2.5x

2.0x

9M11

Fleet value / Net debt 168% 283% 195% 175%

Net debt / EBITDA (*) 1.9x 1.4x 1.9x 1.7x

Net debt / Equity 1.4x 0.7x 1.3x 1.3x

(*) annualized

Fleet; 2,410.5

Cash; 564.6

Debt; 1,846.0

Balance sheet, as of 09/30/11

Net debt; 1,281.4

Other assets; 572.0

Other liabilities; 620.6

Equity; 1,080.5

Assets Liability and equity

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45

Financials: debt profile and costs R$ million

6 years term for debt payment.

207.7 230.3 299.8 249.3

514.0372.0

0.7

2011 2012 2013 2014 2015 2016 2017Cash564.6

Contract rate Effective cost 2011 2012 2013 2014 2015 2016 2017 Total

Working capital108.7% to 114.7%

of CDI and CDI+1.44%a.a.

CDI + 0.44%pa

112.0% to 114.0% of CDI

112.8% of CDI

CDI +1.95%pa

TJLP + 3.8%pa / CDI + 2.3%pa

-

-

-

111.1% - 114.7% of CDI and

CDI+1.79%a.a. - 15.0 38.7 70.0 86.3 190.0 - 400.0

Debenture 2nd Issuance CDI + 0.6%pa - 66.6 66.6 66.8 - - - 200.0

Debenture 4th Issuance 114.2% of CDI - 24.0 24.0 63.0 63.0 74.0 122.0 370.0

Debenture 5th Issuance 114.5% of CDI - - - - - 250.0 250.0 500.0

Debenture 1st Issuance: Total Fleet CDI + 2.0%pa - 100.0 100.0 100.0 100.0 - - 400.0

Other TJLP + 3.8%pa / CDI + 2.3%pa 0.7 2.1 1.0 - - - - 3.8

Interests accrued until 09/30/11, net of interest paid - 76.0 - - - - - - 76.0

Cash and cash equivalents on 09/30/11 - (564.6) - - - - - - (564.6)

Net debt - (487.9) 207.7 230.3 299.8 249.3 514.0 372.0 1,385.2

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46

16.9%

8.9%13.6% 10.9% 8.4% 8.2% 7.8% 7.8%

16.9%11.5%

24.8%18.7% 21.3%

17.0%

2005 2006 2007 2008 2009 2010 9M11

Interest on debt after tax ROIC

Financials: spread

2005 2006 2007 2008 2009 2010 9M11

1,984.6 2,428.8

29.2%

0.58x

16.9%

8.9%

8.0

28.6%

0.59x

16.9%

7.8%

9.1

1,642.3

32.1%

0.53x

17.0%

8.2%

Average capital investment - R$ million 606.3 986.2 1,137.5

8.8

1,702.3

21.9%

0.53x

11.5%

7.8%

3.7

NOPAT margin (over rental net revenues) 37.0% 34.5% 36.9%

Turnover of average capital investment (over rental net revenues) 0.67x 0.55x 0.58x

ROIC 24.8% 18.7% 21.3%

Interest on debt after tax 13.6% 10.9% 8.4%

Spread (ROIC – Interest after tax) - p.p. 11.2 7.8 12.9

11.2p.p.7.8p.p. 12.9p.p. 8.8p.p.

3.7p.p.9.1p.p. 8.0p.p.

*

* Annualized

Spread of 8.0p.p. despite the growth in the interest rate.

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47

1.The Company

2.Drivers and opportunities

3.Competitive advantages

4.Financials

5.2012 Brazilian Macroeconomic scenario

Agenda

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48

Macroeconomic scenario

Strengthssolid financial systemhigh compulsory deposit low standards of unemploymentrobust international reserveprimary surplus

Weaknessesdeficient infrastructurehigh tax burdenbureaucracy

Threatsincrease in inflation household indebtnessincrease in default

Opportunitiescrisis opened space for reduction in Selic ratemonetary policy: deposit requirement and macro prudential measuresinfrastructure investments with private partnership2014 World Cup / 2016 Olympic Games

Source: IMF / BCB / Bradesco / Itaú / Citi / Valor Econômico

7.5%

2.9% 3.4%

2010 2011E 2012E

GDP

5.9%6.5%

5.4%

2010 2011E 2012E

CPI - IPCA

9.7%11.8%

9.7%

2010 2011E 2012E

Selic rate

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49

IR Team

DisclaimerThe 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 does not 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 any other person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information 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 Exchange Act of 1934. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements 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 its subsidiaries 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 to LOCALIZA’smanagement, 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 securities to be made in the United States will be made by means of an offering memorandum that may be obtained from the underwriters. Such offering memorandum will contain, or incorporate by reference, detailed information about LOCALIZA and its business and financial results, 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 hereinshall form the basis of any contract or commitment whatsoever.

Nora LanariRoberto Mendes Silvio GuerraCFO - RI RI RI

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