Localiza completa 3 q11 eng
57
1 October / 2011
description
Transcript of Localiza completa 3 q11 eng
1October / 2011
2
1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.Macroeconomic scenario
Agenda
3
Company: highlights
Performance
Largest car rental company in South America with more than 480 branches in 8 countries
Proved growth and profitability track record
Market share of 37.5% in car rental and 12.5% in fleet rental
~100,000 cars fleet
Flexible business model
Top of mind
Corporate governance
High levels of corporate governance
Stable management
RENT3
ADTV: > BRL 20 million
4
Integrated business platform
This integrated business platform gives Localiza flexibility and superior performance.
Synergies:bargaining powercost reductioncross 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
5
Strategy by divisionC
ore
busi
ness
Supp
ort
Increase market leadership maintaining high return
Create value taking advantage of the fleet rental market, leveraging the synergies from the integrated business platform
Add value to the businesses, optimizing fleet renewal and reducing depreciation as a competitive advantage
6
Company: stable management
Salim Mattar – 38y
Eugênio Mattar – 38y
Roberto Mendes – 26y
Gina Rafael – 30y
João Andrade – 7y
Marco Antônio Guimarães – 21y
Bruno Andrade – 19y
BOARD OF DIRECTORS
CEO
COO
Car Acquisition
Legal
Financial ITHuman Resources Administration
Localiza has a lean and efficient structure.
The succession process is already planned.
7
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.
8
Financial cycle – car rental
Car sale revenue$27.9
$26.6Car acquisition
1 2 3 4 5 8 9 10 11 12Expenses, interest and tax
1-year cycle
Revenue
$2.3SG&A
Spread9.8p.p.
Total1 year
R$ % R$ % R$Revenues 19.5 100.0% 27.9 100.0% 47.4 Cost (8.2) -42.2% (8.2) SG&A (2.8) -14.5% (2.3) -8.4% (5.2) Net car sale revenue 25.5 91.6% 25.5 Book value of car sale (24.7) -90.0% (24.7)
EBITDA 8.5 43.4% 0.8 2.9% 9.3 Depreciation (vehicle) (1.5) -5.5% (1.5) Depreciation (non-vehicle) (0.4) -1.8% (0.1) (0.5) Interest on debt (2.0) -7.2% (2.0) Tax (2.4) -12.1% 0.7 2.5% (1.6)
NET INCOME 5.8 29.5% (2.2) -7.7% 3.6 NOPAT 5.1 ROIC 17.7%Cost of debt after tax 7.9%
Car Rental Seminovosper operating car per operating car
*
* Investment in cars and PP&E (8%)
9
Financial cycle – fleet rental
Total2 anos
R$ % 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 29.0
1 2 3 4 5 20 21 22 23 24
2-year cycle
Expenses, interest and tax
Revenue
$2.2SG&A
Spread7.3p.p.
10
Average growth of 25.0% p.a. in the last six years
Company: growth and profitability track record
42 62 85.2 134.3 154 149.9 152.1 197.8278.1 311.4
403.5504.1 469.7
649.5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
212.90 234.30 244.70 310.10 420.40 476.90 532.00 634.40876.90
1,145.401,531.70
1,855.70 1,856.30
2,551.30
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Revenues consolidated
CAGR: 16.5%
GDP 3.4 0.0 0.3 4.3 1.3 2.7 1.1 5.7 3.2 4.0 6.1 5.2 -0.6 7.5
4.4Average 1.9
CAGR: 23.9%
EBITDA consolidated
CAGR: 25.1%
CAGR: 23.1%
11
Rental revenues growth elasticity x GDP
2005 2006 2007 2008 2009 2010
5.5x
Consolidated Localiza
GDP
Sector
2.8x
Company: GDP elasticity
The drivers combined with Localiza’s competitive advantages resulted in a growth above the industry level.
12
18.9% 20.6% 20.8% 21.8% 21.4% 23.5%
2005 2006 2007 2008 2009 2010
Company: market share
Consolidated
Source: ABLA 2011 yearbook
Fleet
37.5% 12.5%
Car Rental division Fleet Rental division
13
1.Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.Macroeconomic scenario
Agenda
14
Drivers and growth opportunities
15
Income increase and stable daily rental rates granted access of car rental to the middle class.
Car rental drivers: income and affordability
GDP per capita (R$ 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$) Daily rental price over minimum salary (%)
Rent a Car Affordability
Source: Infraero, Gol, Abecs and Exame magazine (Dec/2010)
6.9 7.5 8.4 9.5 10.7 11.7 12.8 14.216.0 16.6
19.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
16
Middle class (million)
6698
113
2003 2009 2014e
Credit card holders
15
45 51
2003 2009 2010
Middle class and credit card holders growth resulted in the increase of demand.
Source: Infraero, Gol, Abecs and Exame (Dec/2010)
Car rental drivers: consumption
48.5%15.3%
Air traffic passengerss
71128
154
2003 2009 2010
80.3% 20.3%200.0% 13.3%
17
Infrastructure investments have a positive impact in rental volumes.
Investments 2011-2014
Car rental drivers: investments
Source: BNDES 2011-2014, Ernani Torres (Deputy Director)
R$
billi
on
196 337131
210206
339
2006-2009 2011-2014
Construction Infrastructure Industry
533
886+ 66%
18
Avis31
Unidas73
326 Hertz67
Other2004
Brazilian distribution
Source: Each company website (June, 2011)
289
64 7246
Localiza Hertz Unidas Avis
# of branches
# of cities
Market
Airport
Off-airport
Other30Avis
33
Unidas18
Localiza98
Hertz30
Car rental opportunities: consolidation
217 cities where the competitors are not present. Off-airport market is still fragmented.
97
9164
424
252
Localiza Hertz Unidas Avis
19
Network expansion
Last 12 months* Branches
Total 39
Own 17
Franchised 22
The network still being expanded.
Brazilian distribution
# of branches in Brazil
279 312 346 381 415 435
254
2005 2006 2007 2008 2009 2010 9M11
Strategy: organic growth
*as of June, 2011
20Source: ABLA and Company’s estimates
Fleet rental drivers: outsourcing trend
Corporate fleet:2.000.000
Targeted fleet:500.000
Rented fleet:232.000
30.732
Only 50% of targeted fleet is rented.
21
Income increase and credit availability are the major drivers for car sales.
Source: Bradesco, PIB per capita: IPEADATA.
Used car sales drivers: affordability and penetration
1.2
1.5
1.7
1.7
1.9
4.0
6.9
USA
Italy
France
England
Germany
Mexico
Brazil
# of inhabitants per car
Car purchase affordability
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$)
22
The network is being expanded to support rentals’ growth.
Brazilian distribution New lots
Status* Points of sale
In construction 6
Construction to begin 6
Prospection 10
# of points of sale
26 32 3549 55 61
13
2005 2006 2007 2008 2009 2010 9M11
Strategy: network expansion
*as of June, 2011
23
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 market: new cars x used cars
New cars X used cars
New cars Used cars
Source: FENABRAVE (Autos + light commercial)
24
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
Used car sales: 2010 market share
Source: Fenabrave 2010
Share: Localiza used cars x Car market
Used cars sold: 47,285
25
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.
Financial sales profile
Financed In cash
Monthly average of sold cars
The macro prudential measures impacted the financial sales profile.
26
1.Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.Macroeconomic scenario
Agenda
27
Competitive advantages
Raisingmoney
Rentingcars
Sellingcars
Buyingcars
Localiza presents competitive advantages in all links of the rental chain.
28
Competitive advantages: raising money
Raisingmoney
Rentingcars
Sellingcars
Buyingcars
BBB- FitchBaa3 Moody’s BBB+ S&P B+ S&P B+ Fitch B2 Moody's
Global Scale
Aa1.br Moody’sAA(bra) Fitch A (bra) Fitch BBB+ (bra) Fitch BBB (bra) Fitch
National Scale
Investment grade: lower spreads and longer terms
Localiza raises money with lower spreads when compared to Brazilian competitors.
29
Competitive advantages: buying cars
Better conditions due to higher volumes
Localiza buys cars fit to rent and that have the highest residual value reduces depreciation.
Raisingmoney
Renting cars
Sellingcars
Buyingcars
Localiza’ share in national sales of the three largest automakers: GM, FIAT, VW
Purchases by brand
Fiat25.6%GM
37.0%
Renault3.1%
Ford4.3% Others
2.8%
VW27.2%
2.8%
30
The Company has a strong know-how of the rental process.
Competitive advantages: renting cars
Know How
Raising money
Renting cars
Sellingcars
Buyingcars
31
Brand
Competitive advantages: renting cars
Raising money
Renting cars
Sellingcars
Buyingcars
Localiza is TOP OF MIND in Brazil.
32
Brazilian distribution
Avis31
Unidas73
Localiza326 Hertz
67
Other2004
Airport Off-airport
Other30Avis
33
Unidas18
Localiza98
Hertz30
Competitive advantages: renting cars
Raising money
Renting cars
Sellingcars
Buyingcars
Localiza is present in 100% of the commercial airports.
Localiza is present in the most important Brazilian cities.
Source: Each company website (June, 2011)
33
Scale
97
9164
424
252
# of branches
289
64 7246
Localiza Hertz Unidas Avis
# of cities
Localiza is bigger than the 2nd, 3rd and 4th competitors combined in number of rental locations.
Raising money
Renting cars
Sellingcars
Buyingcars
Competitive advantages: renting cars
Source: Each company website (June, 2011)
Localiza Hertz Unidas Avis
34
Lower depreciation
Point of sale in Francisco Morato - SP - Brazil Point of sale in Belo Horizonte - MG - Brazil Point of sale in Sorocaba - SP - Brazil
Competitive advantages: selling cars
Raising money
Renting cars
Selling cars
Buyingcars
Around 75% of used cars are sold directly to final consumers.
Selling directly to final consumer reduces depreciation.
35
Buffer
Raising money
Renting cars
Selling cars
Buyingcars
Competitive advantages: selling cars
Cars available for sale are used by the car rental division during peaks of demand.
36
1.Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.Macroeconomic scenario
Agenda
37
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%
38
3Q comps are higher in the car rental due to the effects of 2010 elections.
1Q 2Q 3Q 4Q
2009
2010
2011
+29.3%+27.8%
+23.4%
Excluding effects of election
Quarterly evolution of the number of rental days
39
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%
40
Net Investment
Flexibility in the car purchase to adjust fleet to demand.
Fleet increase * (quantity)
7,342 10,346 7,957
18,649
9,930 8,642
Purchased cars Sold cars
243.5341.5 210.4
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
9,49318,763 23,174
30,093 34,281 34,519
12,859 13,635
38,16040,607
17,798
65,934
37,69447,285
34,486
2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11
690.0930.3 1,060.9
1,335.3 1,204.2
1,910.4
1,199.6
521.7294.2446.5 588.8
850.5 980.8 922.41,321.9
939.6
354.2 394.6
1,119.81,088.0
2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11
6,121 466
4,939 (4,142)
260.0 31.8
167.5 (100.4)
41
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
42
Distribution
# of used car sales stores
26 32 3549 55 61
13
2005 2006 2007 2008 2009 2010 9M11
279 312 346 381 415 440
254
2005 2006 2007 2008 2009 2010 9M11
# of rental locations in Brazil
Localiza and Seminovos networks are being expanded to increase sales volumes.
43
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
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%
44
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%
45
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
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%
46
Average depreciation per carR$
Hot used car market
Financial crisis effectNormal 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
The launching of new models increases 3Qs depreciation.
Average depreciation per car remained stable in the year.
Depreciation evolution - per quarter
* Annualized
47
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
The fleet renewal after the end of the tax exemption resulted in higher depreciation.
* Annualized
Depreciation evolution - per year
Depreciation evolution - per quarter
48
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
2011 results were impacted mainly due to interest rate increase.
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%
49
Free cash flow - FCF
Strong cash flow generation before growth and interest expenses.
(*) 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)
50
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
51
Debt – ratiosR$ million
Comfortable debt ratios.
Net debt Fleet value
SALDOS EM FINAL DE PERÍODO 2005 2006 2007 2008 2009 2010
57% 52%
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
72%
2.5x
2.0x
9M11
Net debt / Fleet value 60% 36% 51% 57%
Net debt / EBITDA (*) 1.9x 1.4x 1.9x 1.7x
Net debt / Equity 1.4x 0.7x 1.3x 1.3x
(*) annualized
535.8 440.4765.1
1,254.5 1,078.6 1,281.1 1,385.2900.2
1,247.7 1,492.9 1,752.6 1,907.82,446.7 2,430.7
2005 2006 2007 2008 2009 2010 9M11
52
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
Spread
Spread of 8.0p.p. despite the growth on basic interest rate.
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
53
1.Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.Macroeconomic scenario
Agenda
54
GDP: growth moderation
Source: BCB presentation as of September 11: Desafios e Perspectivas da Economia Brasileira
2,2
5,3
7,5 7,5
6,2
4,7
3,5
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11*
9,3 9,2
6,7
5,04,2
3,1
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Accumulated in 4 quarters
Q/Q -1
% o
f GD
P%
of G
DP
55
Inflation and selic rate: expecting decrease
Source: BCB/ IBGE as of 10/07/11.
2008 2009 2010 2011 E 2012 E
Selic rate 12.5 10.4 10.0 11.7 10.5
12-month CPI 5.7 4.9 5.0 6.6 5.7
Real interest rate 6.4 5.2 4.7 4.8 4.5
Average
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Jan-
08
Apr
-08
Jul-0
8
Oct
-08
Jan-
09
Apr
-09
Jul-0
9
Oct
-09
Jan-
10
Apr
-10
Jul-1
0
Oct
-10
Jan-
11
Apr
-11
Jul-1
1
Oct
-11
Jan-
12
Apr
-12
Jul-1
2
Oct
-12
Selic
12-month CPI
Real Market expectation - Central Bank
56
Macro prudential measures adopted
Banks:
Increase bank reserve requirements on demand and time depositsIncreased capital requirement for consumer loan involving longer maturities
Consumption:
Minimum payment for credit card billIOF tax over credit to consumption
Exchange:
Established unremunerated reserve requirement on short spot FX positions above a limitIOF over some types of capital entrance
57
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 Guerra
Email: [email protected]
Phone: 55 31 3247-7024
CFO - RI RI RI
