Localiza institucional eng final

44
March, 2014 Localiza Rent a Car S.A. Institutional Presentation

description

Institutional Presentation

Transcript of Localiza institucional eng final

Page 1: Localiza institucional eng final

March, 2014

Localiza Rent a Car S.A.

Institutional Presentation

Page 2: Localiza institucional eng final

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1. Company overview

2. Main business divisions

� Car Rental

� Fleet Outsourcing

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Earnings release 4Q13

Agenda

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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 Outsourcing

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

12/31/2013 – Market cap of US$3.0 biwith ADTV of R$40.8 million

1973 1982 1983 2004 2005 2013

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Company: integrated business platform

Synergies:

bargaining power

cost reduction

cross selling

� 14.233 cars

� 193 locations in Brazil

� 63 locations in South America

� 35 employees

� 61.6% sold to final consumer

� 74 stores

� 1,020 employees

� 70,717 cars

� 3.8 million clients

� 286 locations

� 4,394 employees

� 32,809 cars

� 760 clients

� 350 employees

This integrated business platform gives Localiza flexibility and superior performance.

Based on the 4Q13

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Company: Business platform divisions

Car Rental

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

The traditional backbone of Localiza. With its giant fleet that gets renewed annually, it lays the foundation for all scale effects captured by the group as a whole.

Fleet Outsourcing

Total Fleet, offering customized fleet for 2-3 years terms.

Total Fleet is seen as an additional business that generates value by leveraging synergies created by the integrated platform approach.

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.

As a support business activity, Seminovos enables the sell roughly 65% of used cars directly to the final customer, thereby maximizing the residual value of used rental cars.

Franchising

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

Franchising is seen as a primarily strategic business by management – the revenues generated are low, however brand and network expand at minimum capital expenditure.

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Net car salerevenue R$25.51 year cycle

Car Rental Financial Cycle

R$27.0Car acquisition

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

Revenue

Spread11.1p.p.

Total

1 ano

R$ % Seminovos % R$

Net revenues 19,7 100,0% 28,1 100,0% 47,8

Costs - fixed and variable (9,1) -46,1% (9,1)

SG&A (3,3) -17,0% (2,6) -9,4% (6,0)

Net revenues of car sold 25,5 90,6% 25,5

Book value of car sold (24,1) -85,8% (24,1)

EBITDA 7,3 36,8% 1,4 4,9% 8,6

Cars Depreciation (1,5) -5,2% (1,5)

Others depreciation (0,4) -1,9% (0,2) -0,8% (0,6)

Financial expenses (1,3) -4,6% (1,3)

Taxes (2,1) -10,5% 0,5 1,7% (1,6)

Net Income (Loss) 4,8 24,5% (1,1) -4,0% 3,7

NOPAT 4,6

ROIC 17,1%

Cost of debt after taxes 6,0%

Car Rental Seminovos

Per car soldPer operating car

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Net car salerevenue R$24.42 year cycle

Fleet Outsourcing Financial Cycle

Spread11.1p.p.

R$33.3Car aquisiton

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

Revenue

Total

2 anos

R$ % Seminovos % R$

Net revenues 36,9 100,0% 26,7 100,0% 63,7

Costs - fixed and variable (10,3) -28,0% (10,3)

SG&A (2,4) -6,5% (2,4) -8,9% (4,8)

Net revenues of car sold 24,4 91,1% 24,4

Book value of car sold (23,1) -86,2% (23,1)

EBITDA 24,2 65,5% 1,3 4,9% 25,5

Cars Depreciation (9,2) -34,3% (9,2)

Others depreciation (0,1) -0,2% - 0,0% (0,1)

Financial expenses (2,2) -8,2% (2,2)

Taxes (7,2) -19,6% 3,0 11,3% (4,2)

Net Income (Loss) 16,9 45,7% (7,0) -26,3% 9,9

Net Income (Loss) - per year 8,4 45,7% (3,5) -26,3% 4,9

NOPAT 5,7

ROIC 17,1%

Cost of debt after taxes 6,0%

Per operating car

Fleet Rental Seminovos

Per car sold

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Spread (ROIC minus cost of debt after taxes)

(*) 2008 and 2012 ROIC were calculated excluding additional fleet depreciation that was treated as equity loss since they were extraordinary non-recurring events caused by external factors (IPI reduction for new cars), following the concepts recommended by Stern Stewart.

10.9% 8.4% 8.8% 7.6% 7.3% 8.6% 6.3% 6.0%

18.7%21.3%

17.0%

11.5%

16.9% 17.1% 16.1% 16.5%

2006 2007 2008 2009 2010 2011 2012 2013

7.8p.p. 12.9p.p. 8.2p.p.4.0p.p.

9.6p.p. 8.5p.p.10.5p.p.9.8p.p.

ROIC Cost of debt after taxes

Financial crisis effect

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505.9 608.2 745.2

883.1 1,087.1 1,096.3

1,382.1 1,605.4 1,703.0

2004 2005 2006 2007 2008 2009 2010 2011 2012

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Rental revenues evolution

3.585,6 3.520,6 3.510,5 3.659,4 3.884,6 4.045,4 4.381,8 4.433,3 4.527,0

2004 2005 2006 2007 2008 2009 2010 2011 2012

Localiza’s rental revenues at constant prices

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

The Company grew at an average of 4.2x GDP and 5.5x the sector.

GDP 5.7% 3.2% 4.0% 6.1% 5.2% -0.3% 7.5% 2.7% 1.0%

Average GDP growth: 3.9%

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

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Raising money

Renting cars Selling carsBuying

cars

Cash to renew the fleet or pay debt

$

$

Profitability comes from rental divisions

Competitive advantages: 40 years of experience in managing assets

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Competitive advantages: raising money

Global Scale

National Scale

Localiza raises money with lower spreads when compared to Brazilian competitors.

As of March, 2014.

BBB FitchBaa3 Moody’sBBB- S&P

BBB+ S&P B+ S&P B+ Fitch B1 Moody's

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

brAA- S&PA+ (bra) Fitch

brA S&P A (bra) Fitch

brA+ S&PA+ (bra) Fitch

A(bra) Fitch

Raisingmoney

Buyingcars

Renting CarsSellingCars

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Competitive advantages: buying cars

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

Number of cars purchased - 2012

* Includes Franchising

Localiza Unidas Locamerica

67,492

15,3769,522

*

Source: each company website

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

2.6%

Raisingmoney

Buyingcars

Renting CarsSellingCars

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14551

13

The Company is present in 254 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

Localiza Hertz Unidas Avis

Source: Brand Analytics and each company website (Localiza and Peers, as of September , 2013)

477

306

Raisingmoney

Buyingcars

Renting CarsSellingCars

343

86 7138

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Sales to final consumer

Competitive advantages: selling cars

Selling directly to final consumer reduces depreciation.

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

Raisingmoney

Buyingcars

Renting CarsSellingCars

Buffer: additional fleet

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2012 Industry overview

Source: ABLA, Companies’ Financial Statements. **Ouro Verde: Net Rental Revenue, operates only fleet rental***Investiment = Average shareholders’ Equity + Average Net Debt 15

Gross Rental Revenues(R$ million)

1,703.0 435.6 336.9 807.5 151.1**

Fleet (End of period ) 109,194 33,187 29,252 22,200 15,836

ROIC (NOPAT/Investment***)

17.3% 3.9% 6.9% 6.9% 8.9%

Net Debt/ EBITDA 1.4x 1.7x 2.9x 3.7x 3.3x

Net Debt/ Equity 0.9x 0.6x 1.4x 2.3x 4.0x

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1. Company overview

2. Main business divisions

� Car Rental

� Fleet Outsourcing

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Earnings release 4Q13

Agenda

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Car Rental overview

65.9%Compact cars

2013 Fleet composition

70,717 cars

34.1%Others

Net Revenues (R$ million)

Corporate fleet size

47,517

64,688 70,717

2009 2011 2013

4,668 5,793

7,940 8,062

10,734

12,794 13,749 14,242

3,560 3,714

2006 2007 2008 2009 2010 2011 2012 2013 4Q12 4Q13

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Drivers

Air traffic passengers - million

Source: BNDES, ANAC, IPEADATA and BCB

GDP per capita

(R$ thousands)

6.9 7.5 8.4 9.5 10.7 11.7 12.8 14.2 16.0 16.6

19.0 21.3 22.4

24.1

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

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

29

7082 89 90

2003 2010 2011 2012 2013

Investments in Brazil (2014-2017)(R$ 3.982 billion)

1.505

1.100 867

510

Services andAgriculture

Industry Housing Infraestructure

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Distribution

Car rental distribution (Brazil)

254 279 312 346381 415 449 474 479

2005 2006 2007 2008 2009 2010 2011 2012 2013

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20Source: Abla and each company’s website (September, 2013)

Off-airport market is still fragmented.

Airport locations Off-airport locations

Car Rental Locations in Brazil

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2012 Share – Car Rental

Source: Euromonitor for revenue , ABLA for fleet and Companies’ Financial Statements.21

Rental RevenuesR$2,781.2 million

Others53.8%

30.9%

4.6%

6.5%Unidas

Fleet210,506 cars

Characteristics of Car Rental network in Brazil:

� Complex chain management

� High fixed-cost structure

� Market consolidated in airports and fragmented in off-airport locations

� High barrier to entry

� Capital intensive

35.5%41.8%

2.5%Hertz

Others46.8%

2.8%Avis

6.1%Unidas

2.1%Avis

2.1 Hertz

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1. Company overview

2. Main business divisions

� Car Rental

� Fleet Outsourcing

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Earnings release 4Q13

Agenda

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Number of clients

Fleet Outsourcing overview

38.0%Compact cars

2013 Fleet composition

32,809 cars

62.0%Others

584687 760

2009 2011 2013

Net Revenues (R$ million)

184.0 219.8 268.4 303.2

361.1 455.0

535.7 575.9

137.9 142.9

2006 2007 2008 2009 2010 2011 2012 2013 4Q12 4Q13

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24Source: ABLA 2012 Yearbook and Datamonitor

Approximately 50% of targeted fleet is not outsourced.

Outsourced fleet penetration

Corporate fleet:

5,000,000*

Rented (outsourced) fleet:

279,042

32,809

Brazilian Market World

5.4%8.9%

13.3%16.5%

24.5%

37.4%

46.9%

58.3%

Bra

zil

Poland

Cze

ch R

epublic

Ger

man

y

France

Spain Uk

Holla

nd

Drivers

*Estimated

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2012 Share – Fleet Outsourcing

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Others65.5%

16.0%

1.6%

Unidas

Locamérica

Rental RevenuesR$3,448.8 million

Others70.1%

11.5% 0.9%

Unidas

Locamérica

Fleet279,042 cars

Characteristics of the Fleet Outsourcing business in Brazil:

� Scale of little relevance after initial scale (10,000 cars)

� Risk of forecast of car residual value by the end of the contract (depreciation)

� Low entry barrier

17.6%

12.4%

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

7.1%

9.8%

7.0%

10.5%

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1. Company overview

2. Main business divisions

� Car Rental

� Fleet Outsourcing

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Earnings release 4Q13

Agenda

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Combining Localiza’s brand with a growing network of stores

enables the Company to continuously sell thousands of cars at market prices.

# of points of sale

Car sales – operating data

2632 35

49 5566

73 74

2006 2007 2008 2009 2010 2011 2012 2013

+1

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

Source: O Estado de São Paulo, as of 08/16/13 (based on researches of Sindipeças).

Used car sales drivers: affordability and penetration

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

5.2

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

8.0 7.9 7.4

6.9 6.55.9 5.5 5.2

2005 2006 2007 2008 2009 2010 2011 2012

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2.9

3.8

6.0 5.8

8.0

9.9

10.7

12.9

7.06.7

7.1 7.3 7.1

8.48.9 9.0

1.6 1.82.3

2.73.0

3.3 3.5 3.6

29

4.4x3.7x

3.1x 2.7x2.4x 2.5x 2.5x

2005 2006 2007 2008 2009 2010 2011 2012

2.6x

Brazilian car market: new x used car market and affordability

Individuals with affordability to buy a car*

New cars

Used cars

Source: FENABRAVE (Autos + light commercial) and Bradesco

* Population with affordability to buy a new compact car (R$25,000) with 20% downpayment, prices as of December 2012

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2012 Up to 2 years409.121

2013 Brand new3,579,903

2013 Used cars9,434,225

0.7% 1.8% 13.9%

Car sales – operating data

Source: Anfavea and Fenabrave

23.174 30.093

34.281 34.519

47.285 50.772 56.644

62.641

12.764

17.999

2006 2007 2008 2009 2010 2011 2012 2013 4Q12 4Q13

# of cars sold (Quantity)

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Examples

• Dealers• Fiat, VW, Ford, GM most

successful• Auto Brasil

• Rental operators• Locamerica, Hertz

• Retailers• “Loja do carro”

• “Auto malls” and “Cidade do automóvel”

Strengths*

• Brand and perceived image/ experience

• Support often directly from the OEM’s

• Flexibility in trade-in cars• Strong media presence

• Tailored to popular customer demand at purchase, hence likely to be an attractive value proposition when for sale

• Often appeal to lower income classes, with older cars

• Occasionally specialized in niches

• Comfort and convenience

• Variety of models and brands

• Flexibility in exchange

Weaknesses*

• Used cars not a core business

• Cars often older than 2 years

• Stigma about heavy usage during rental car years

• Weak retail network• Geographical

concentration (SP)• Lower media presence

• No brand recognition (lower reputation market)

• Financing options with higher interest rates

• Lower media presence

• Cars often older than 2 years

• It hasn’t been successful

Points of sale • 3,714 (Anfavea)• 25 (Unidas, Locamerica,

Avis and Hertz website).• 45,600 (Fenauto) • 71 (Fenauto)

Main players

*Source: Roland Berger

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1. Company overview

2. Main business divisions

� Car Rental

� Fleet Outsourcing

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Earnings release 4Q13

Agenda

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2013 Consolidated breakdownR$ million

Net Revenues EBITDA

11%

41%

48%

50%

16% 34%

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

EBIT*

40%

60%

Net revenues EBITDA EBIT Net income

1,183.0 440.0 392.3 225.3

575.9 377.3 259.8 159.0

1,747.3 99.2 * *

Consolidated 3,506.2 916.5 652.1 384.3

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

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Consolidated Net RevenuesR$ million

537.4 655.0 842.9 898.5 1,175.3 1,450.0 1,646.7 1,758.9

432.9 458.3

588.8 850.5

980.8 922.4 1,321.9

1,468.1 1,520.0 1,747.3

362.6 505.6

2006 2007 2008 2009 2010 2011 2012 2013 4Q12 4Q13

1,126.21,505.5

1,823.7

2,918.1 3,506.2

1,820.9

2,497.2

3,166.7

Rental Seminovos

795.5 963.9

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Consolidated EBITDA R$ million

311.3403.5

504.1 469.7

649.5821.3 875.6 916.5

226.3 236.0

2006 2007 2008 2009 2010 2011 2012 2013 4Q12 4Q13

Excluding accessories and freight for new cars, recorded in the cost line,Car Rental EBITDA margin would be 39.9% in 4Q13 and 39.3% in 2013.

Divisions 2006 2007 2008 2009 2010 2011 2012 2013 4Q12 4Q13

Car Rental 43.4% 46.0% 45.9% 41.9% 45.3% 46.9% 42.7% 39.3% 43.1% 39,9%

Fleet Outsourcing 71.4% 71.3% 69.1% 68.7% 68.0% 68.6% 67.2% 65.9% 67.8% 65,2%

Rental Consolidated 52.9% 54.5% 53.3% 51.1% 52.3% 53.8% 50.8% 48.2% 51.2% 48,0%

Used Car Sales 4.6% 5.5% 5.6% 1.1% 2.6% 2.8% 4.2% 5.7% 3.9% 4.9%

EBITDA margin excluding accessories and freight for new cars in 2012 and 2013:

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2,383.3 2,395.8

5,083.14,371.7

3,509.74,133.0

4,311.3

4,592.31,096.9

2006 2007 2008 2009 2010 2011 2012 2013

939.1332.9

2,546.0 2,577.0

1,536.0 1,683.9

1,895.8

1,452.4

2,076.6

2006 2007 2008 2009 2010 2011 2012 2013

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Average depreciation per carin R$

Robust used-car market

Financial crisis and IPI reduction effect

Robust used-car market

Financial crisis and IPI reduction effect

Depreciation Non recurring additional depreciation - IPI Effect

Depreciation Non recurring additional depreciation - IPI Effect

3,972.4

5,408.2

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138.2190.2

127.4 116.3

250.5291.6

240.9

384.3

86.1

90.0

2006 2007 2008 2009 2010 2011 2012 2013 4Q12 4Q13

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Consolidated net incomeR$ million

* Pro forma 2012 net income excluding additional depreciation, net of income tax.

336.3 *

Record

95.2 *

Strong net income growth even in lower-growth scenario.

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1. Company overview

2. Main business divisions

� Car Rental

� Fleet Outsourcing

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Earnings release 4Q13

Agenda

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Free cash flow

(*) Without the technical discount up to 2010

Free cash flow - R$ million 2006 2007 2008 2009 2010 2011 2012 2013

EBITDA 311.3 403.5 504.1 469.7 649.5 821.3 875.6 916.5

Used car sale revenue, net from taxes (588.8) (850.5) (980.8) (922.4) (1,321.9) (1,468.1) (1,520.0) (1,747.3)

Depreciated cost of cars sold (*) 530.4 760.0 874.5 855.1 1,203.2 1,328.6 1,360.2 1,543.8

(-) Income tax and social contribution (42.7) (63.4) (52.8) (49.0) (57.8) (83.0) (100.9) (108.5)

Change in working capital (4.8) 13.3 (44.8) (11.5) 54.5 (83.9) 37.1 2.9

Cash provided before investment 205.4 262.9 300.2 341.9 527.5 514.9 652.0 607.4

Used car sale revenue, net from taxes 588.8 850.5 980.8 922.4 1,321.9 1,468.1 1,520.0 1,747.3

Car investment for renewal (643.3) (839.0) (1,035.4) (947.9) (1,370.1) (1,504.5) (1,563.3) (1,818.7)

Net investment for fleet renewal (54.5) 11.5 (54.6) (25.5) (48.2) (36.4) (43.3) (72.4)

Fleet renewal – quantity 23,174 30,093 34,281 34,519 47,285 50,772 56,644 62,641

Investment, other property and intangibles investments

(32.7) (23.7) (39.9) (21.0) (51.1) (63.0) (80.2) (54.0)

Free cash flow before growth and before interest 118.2 250.7 205.7 295.4 428.2 415.5 528.5 481.0

Investment on cars for fleet (growth) /reduction (287.0) (221.9) (299.9) (241.1) (540.3) (272.0) (55.5) (209.4)

Change in accounts payable to car suppliers 222.0 (51.0) (188.9) 241.1 111.3 32.7 (116.9) 89.7

Fleet growth (65.0) (272.9) (488.8) 0.0 (429.0) (239.3) (172.4) (119.7)

Fleet increase / (reduction) – quantity 10,346 7,957 9,930 8,642 18,649 9,178 2,011 7,103

Free cash flow after growth and before interest 53.2 (22.2) (283.1) 295.4 (0.8) 176.2 356.1 361.3

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Changes in net debt R$ million

- 1,332.8(110.6)

Financial expenses

(65.5)

Dividends (*)

Net debt 12/31/2013

FCF361,3

-1,231.2

Net debt12/31/2012

FCF after financial expenses

250.7

(36.8)

Company’s share buybacks

(250.0)

Extraordinary dividends

(*) Includes interest own capital paid in the period

R$250 million extraordinary dividend paid in 2013.

315,5

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Debt - ratios

Net debt vs. Fleet value

BALANCE AT THE END OF PERIOD

2006(*) 2007(*) 2008(*) 2009(*) 2010(*) 2011 2012 2013

Net debt / Fleet value 36% 51% 72% 57% 52% 51% 48% 48%

Net debt / EBITDA 1.4x 1.9x 2.5x 2.3x 2.0x 1.7x 1.4x 1.5x

Net debt / Equity 0.7x 1.3x 2.0x 1.5x 1.4x 1.2x 0.9x 1.0x

EBITDA / Net financial expenses 4.8x 5.4x 3.8x 4.2x 5.0x 4.6x 6.3x 8.3x

(*) From 2006 to 2010, ratios based on USGAAP financial statements.

Net debt Fleet value

Comfortable debt ratios.

440.4 765.1

1,254.5 1,078.6

1,281.1 1,363.4 1,231.2 1,332.8 1,247.7 1,492.9

1,752.6 1,907.8

2,446.7 2,681.7 2,547.6 2,797.9

2006 2007 2008 2009 2010 2011 2012 2013

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Debt maturity profile (principal)R$ million

The Company continues presenting a strong cash position and comfortable debt maturity profile.

-

245.9 185.7

641.4 511.0

221.0 247.0

100.0 100.0

2013 2014 2015 2016 2017 2018 2019 2020 2021

Cash

1,010.7

1,073.0

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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

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Disclaimer

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’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 securities to 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 an offering of securities in future. 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 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