1May / 2012
2
1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
Agenda
3
Company: integrated business platform
This integrated business platform gives Localiza flexibility and superior performance.
Synergies:
bargaining power
cost reduction
cross selling
� 13,077 cars
� 203 locations in Brazil
� 47 locations in South America
� 34 employees
� 69.0% sold to final consumer
� 67 stores
� 921 employees
� 60,258 cars
� 2.9 million clients
� 251 locations
� 4,022 employees
� 31,186 cars
� 692 clients
� 323 employees
Based on the 1Q12
4
Total
1 year
R$ % R$ % R$
Revenues 19.9 100.0% 29.1 100.0% 48.9
Cost (8.2) -41.3% (8.2)
SG&A (2.7) -13.5% (2.9) -9.9% (5.5)
Net car sale revenue 26.2 90.1% 26.2
Book value of car sale (25.5) -90.0% (25.5)
EBITDA 9.0 45.2% 0.7 2.4% 9.7
Depreciation (vehicle) (1.7) -5.8% (1.7)
Depreciation (non-vehicle) (0.3) -1.7% (0.1) (0.5)
Interest on debt (2.4) -8.2% (2.4)
Tax (2.6) -13.0% 1.0 3.6% (1.5)
NET INCOME 6.1 30.4% (2.4) -8.4% 3.6
NOPAT 5.3
ROIC 17.5%
Cost of debt after tax 8.6%
Car Rental Seminovos
per operating car per operating car
Car rental financial cycle
Car sale revenue$26.2
$27.9Car acquisition
1 2 3 4 5 8 9 10 11 12Expenses, interest and tax
1-year cycle
Revenue
Spread8.9p.p.
*
* Investment in cars and PP&E (8%)
5
$33.8Car acquisition
Net car sale revenue
$26.4
1 2 3 4 5 20 21 22 23 24
2-year cycle
Expenses, interest and tax
Revenue
Fleet rental financial cycle
Spread7.5p.p.
Total
2 years
R$ % R$ % R$
Revenues 34.0 100.0% 28.7 100.0% 62.7
Cost (9.7) -28.7% (9.7)
SG&A (1.8) -5.3% (2.3) -7.9% (4.1)
Net car sale revenue 26.4 92.1% 26.4
Book value of car sale (25.0) -90.0% (25.0)
EBITDA 22.4 66.0% 1.4 5.0% 23.8
Depreciation (vehicle) (8.3) -28.8% (8.3)
Depreciation (non-vehicle) (0.1) -0.1% (0.1)
Interest on debt (4.0) -14.1% (4.0)
Tax (6.7) -19.8% 3.3 11.4% (3.5)
NET INCOME 15.6 46.0% (7.6) -26.5% 8.0
NET INCOME per year 7.8 46.0% (3.8) -26.5% 4.0
NOPAT (annualized) 5.4
ROIC 16.1%
Cost of debt after tax 8.6%
Fleet Rental Seminovos
per operating car per operating car
6
Pricing strategy
Company: managing assets
Targeted spread
Funding
Equity
Cash to renew the fleet
Assets (cash)
Profitability comes fromrental divisions
As
se
ts (
ca
rs)
Debt
Flexible and liquid assets.
7
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 ITHuman
ResourcesAdministration
Daltro Leite – 26y
8
Average growth of roughly 25% p.a. in the last years.
Company: growth and profitability track record
Revenues consolidated
EBITDA consolidated
331.4 408.4 537.4 655.0 842.9 898.51,175.3
1,450.0303.0
446.5588.8
850.5980.8 922.4
1,321.9
1,468.1
515.7457.4402.7296.1234.1225.9212.9
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
CAGR: 24.4%
CAGR: 15.9%
634.4854.9
1,126.2
1,505.5
1,823.7 1,820.9
2,497.2
2,918.1
Consolidated Rentals Used car sales
CAGR: 23.4%
4.3
42 62 85.2134.3 154 149.9 152.1 197.8
278.1 311.4403.5
504.1 469.7
649.5
821.3
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
CAGR: 23.9%
CAGR: 22.6%
-0.6 7.55.7 3.2 4.0 6.1 5.2
1.9Average
1.12.71.34.30.30.03.4GDP 2.9
9
2005 2006 2007 2008 2009 2010 2011
Rental revenues growth elasticity x GDP
5.7x
Localiza
GDP
Sector
2.9x
Company: GDP elasticity
The drivers combined with Localiza’s competitive advantages resulted in a growth above the industry level.
10
Company: market share - fleet
Consolidated
Source: ABLA 2012 yearbook
36.5% 13.9%
Car Rental division Fleet Rental division
18.9%20.6% 20.8% 21.8% 21.4%
23.5% 24.1%
2005 2006 2007 2008 2009 2010 2011
11
Company: recognitions and rewards
� 2011 Valor 200� 8th Company in growth and profitability
� Maiores e Melhores do Transporte 2011 (Biggest & Best of Transportation)� The best Company of the vehicle rental sector
�Institutional Investor’s ranking:
� BRIC Breakout� One of the 5 top picks Brazil for 2012
� Exame Magazine� Among the 5 best Companies of the consumer sector, in the article “Where to invest in 2012”
� 49th most valued brand in Brazil
� Brand Analytics
12
1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
Agenda
13
Drivers and growth opportunities
14
R$456 bn to be invested.
Car rental drivers: investments
Source: EXAME yearbook, 2011-2012
18.4%
Invested
To 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$16.8 bn
154137
106
38
7 6 35
Oil/
gasTra
nsporta
tion
Elect
ricity
Wat
er/s
ewag
e
Telec
omm
unicat
ion
Arenas
Oth
ers
Housi
ng
Investments by sectorInvestments in Brazil
15
Income increase and stable daily rental rates increased car rental affordability.
Car rental drivers: income and affordability
GDP per capita
(R$ thousands)
151
260
465510
545
240180 200
350
415380
300
18% 16% 15%
31%
35%
15%
37%38%
51%
22% 20%
27%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Monthly minimum salary (R$) Daily rental price over minimum salary (%)
Car rental affordability
Source: IPEADATA, IBGE and Valor website
6.9 7.5 8.4 9.510.7 11.7 12.8
14.216.0 16.6
19.0 21.3
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
16
Strong domestic drivers leads to higher volumes.
Source: FGV, BCB, Infraero, Gol, Abecs and Exame (Dec/2011)
Car rental drivers: consumption
1320
31
2003 2009 2014e
53.8% 55.0%
A and B classes - million Potential consumption of Brazilians in 2011 - billion
Total populationR$ 2,500
A and BclassesR$ 930
71
128154
179
2003 2009 2010 2011
80.3%20.3% 16.2%
Air traffic passengers - million
15
45 5169
2003 2009 2010 2011
200.0% 13.3% 35.3%
Credit card holders - million
17Source: ABLA and each company website (January, 2012)
Car rental opportunities: consolidation
Off-airport market is still fragmented.
Airport locations Off-airport locations
Car rental locations in Brazil
Others
31Avis
30
Unidas
27
Localiza
100
Hertz
41
Avis
24
Unidas
72
Localiza
349 Hertz
76
Others
2004
18
Network expansion in Brazil
36Total
Branches2011
23Franchised
13Owned
Localiza’s network is still being expanded.
Brazilian distribution
Car rental strategy: organic growth
279 312 346381 415 449
254
2005 2006 2007 2008 2009 2010 2011
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
31,629
Brazilian Market World (%)
5.48.9
13.316.5
24.5
37.4
46.9
58.3
Bra
zil
Poland
Cze
ch R
epublic
Ger
man
y
France
Spain Uk
Holla
nd
20
Income increase and credit availability are the major drivers for car sales.
Source: O Estado de São Paulo, as of 04/15/12 (based on researches of Sindipeças, Roland Berger and PWC), Bradesco (2012: estimated), ANFAVEA, Exame (Dec/2011).
Used car sales drivers: affordability and penetration
Car purchase affordability
# of inhabitants per car (2011) # of inhabitants per car - Brazil
66
94.9113
2003 2009 2014e
43.8%
19.1%
Middle class - million
5.5
4.2
4.0
3.6
2.1
2.0
1.9
1.8
1.3
Brazil
Argentina
Russia
South Korea
Japan
France
Germany
United Kingdon
USA 8.0 7.9
7.4
6.9
6.5
5.9
5.5
2005 2006 2007 2008 2009 2010 2011
148 128115
97 10493
80
44525658
6875
151 180 200240 260
300350
645
545510
465
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 2011 2012
0
1 0 0
2 0 0
3 0 0
4 0 0
5 0 0
6 0 0
7 0 0
Number of minimum w ages to buy a new car Monthly minimum salary (R$)
*
21
1.61.8
2.32.7
3.03.3 3.5 3.5
7.0 6.77.1 7.3 7.1
8.48.9
9.5
14.214.7 15.0
14.5
16.0 16.316.9
17.7
Brazilian car market: new x used car market and affordability
Source: FENABRAVE (Autos + light commercial) and Bradesco
Used car market is estimated to be 2.7x the new car market in 2012.
New cars4.4x 3.7x 3.1x
2.7x2.4x
2.5x 2.6x
2005 2006 2007 2008 2009 2010 2011 2012e
Population with affordability to buy a compact car with 20% downpayment
2.7x
Used cars
22
0km SeminovosUsed Seminovos2 years old Seminovos
1.5% 10.6%
Up to 2 yearsUp to 2 years
476,827476,827
Brazilian car market : 2011 market share
Source: Fenabrave 2011
0KM0KM
3,425,4993,425,499
0.6%
UsedUsed
8,862,9518,862,951
Localiza used cars x Car market
Used cars sold: 50,772
23
Brazilian car market: monthly sale per store
Localiza Seminovos monthly sale per store is in line with market average.
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
10996 91 90
84 82 81
48
FIAT VW FORD GM SECTOR
2010**
SEMINOVOS* RENAULT PEUGEOT
24
The network is being expanded to support rentals’ growth.
Brazilian distribution New lots
Points of sale
Status
14In construction and
prospection
Used car sales strategy: network expansion
26 32 3549 55
66
13
2005 2006 2007 2008 2009 2010 2011
25
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 2011 and 2012.
2,5082,857 2,877
3,9404,231 4,428
2007 2008 2009 2010 2011 1Q12
55% 57% 58% 61% 52% 51%
45% 44% 42% 39% 48% 49%
2007 2008 2009 2010 2011 1Q12
26
1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
Agenda
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
28
Competitive advantages: raising money
Global Scale
National Scale
Investment grade: lower spreads and longer terms
Localiza raises money with lower spreads when compared to Brazilian competitors.
As of May, 2012.
Renting carsRaisingmoney
Sellingcars
Buyingcars
BBB- FitchBaa3 Moody’s
BBB- S&PBBB+ S&P B+ S&P B+ Fitch B2 Moody's
A- (bra) FitchbrAAA S&P
Aa1.br Moody’sAA+(bra) Fitch
A (bra) Fitch A- (bra) Fitch
29
2.3%
Fiat
39.3%GM
21.0%
Renault
9.9%Ford
11.0%
Others
1.3%
VW
17.5%
Competitive advantages: buying cars
Better conditions due to higher volumes
Localiza announced the purchase of 100,000 cars for 2H11 and 2012.
Localiza’ share in national sales of the main automakers in 2011: GM, FIAT, VW, Ford
and Renault
Purchases by brand in 2011
Renting carsRaisingmoney
Buyingcars
Sellingcars
30
The Company is present in 213 cities where the other largest networks do not operate.
Competitive advantages: renting cars
Know HowBrand Brazilian distribution
117
99
54
# o
f b
ran
ch
es
# o
f cit
ies
450
270
Localiza Hertz Unidas Avis
Source: Brand Analytics and each company website (January, 2012)
Renting carsRaisingmoney
Buyingcars
Sellingcars
315
80 7540
49th most valued brand
in Brazil
31
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
32
1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
Agenda
33
Highlights
� Investment Grade in global scale and brAAA in national scale by S&P
� Included at Bovespa and IBrx50 indexes starting 01/02/2012
� Increase in the ADTV to R$32 million in 1Q12 (R$23 million in 2011)
� More than 500 rental locations
34
681.5774.7
1Q11 1Q12
Consolidated net income
Highlights
Consolidated EBITDA
End of period fleet
Car rental Fleet rental
R$ m
illio
n
Net Revenues - Consolidated
R$ m
illio
n
13.7%12.8%
14.3%
186.2210.0
1Q11 1Q12
72.763.6
1Q11 1Q12
60,258
31,186
56,080
28,191
1Q11 1Q12
8.5%84,27191,444
Qu
an
tity
R$ m
illio
n
35
Car Rental Division
Revenue grew above volume due to the increase in the average rental rate per car.
267.9233.0
980.7
802.2
585.2565.2428.0
346.1258.6
2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12
CAGR: 24.9%
22.3% 15.0%
3,4114,668
5,793
7,940 8,062
10,734
12,794
3,063 3,330
2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12
CAGR: 24.6%
19.2% 8.7%
# daily rentals (thousand)
Net revenues (R$ million)
36
Fleet Rental Division
The Fleet Rental is still presenting strong pace of growth with revenue’s improvement.
142.0184.0
219.8 268.4303.2
361.1
455.0
104.6 129.5
2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12
CAGR: 21.4%
26.0% 23.8%
3,3514,188
5,1446,437
7,0998,044
9,603
2,253 2,611
2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12
CAGR: 19.2%
15.9%19.4%
# daily rentals (thousand)
Net revenues (R$ million)
37
26,10533,520
38,05044,211 43,161
18,76323,174
30,093 34,281 34,519
13,2858,065
59,950
8,723
65,934
11,581
47,285 50,772
2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12
Net Investment
Car Rental fleet was reduced after the peak of summer vacation demand…
Fleet increase * (quantity)
Purchases (accessories included) Net used car sales revenues
Net investment (R$ million)
* It does not include theft / crashed cars.
690.0930.3
1,060.9
1,335.31,204.2
1,910.41,776.5
249.5446.5
588.8
850.5980.8 922.4
1,321.91,468.1
340.7 373.3231.8
2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12
(108.9) (123.8)
243.5341.5 210.4
308.4
354.5281.8
588.5
(3,516)
(4,562)7,342 10,3467,957
18,649
9,930 8,642
9,178
Purchased cars Sold cars
38
Utilization rate – car rental division
...to keep utilization rate in healthy levels.
66.2% 69.9% 68.2% 68.9% 68.9%69.7%
68.2%74.1%
66.3%
0 .0 %
5 .0 %
1 0 .0 %
1 5 .0 %
2 0 .0 %
2 5 .0 %
3 0 .0 %
3 5 .0 %
4 0 .0 %
4 5 .0 %
5 0 .0 %
5 5 .0 %
6 0 .0 %
6 5 .0 %
7 0 .0 %
7 5 .0 %
8 0 .0 %
8 5 .0 %
9 0 .0 %
9 5 .0 %
1 0 0 .0 %
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
39
End of period fleetQuantity
Inspite of reduction after peak of demand, end of period fleet grew 8.5% compared to the 1Q11.
Car rental Fleet rental
31,373 35,686 39,112 47,51761,445 64,688 56,080 60,25811,762
14,63017,790
23,40322,778
26,61531,629
28,19131,186
24,103
2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12
35,86546,003
53,47662,515
70,295
88,06096,317CAGR: 17.9%
91,44484,271
8.5%
40
Ampliação da rede de distribuição de seminovos
Currently, 8 stores are under construction with the objective of reaching 80 stores until December 2012.
2632 35
4955
66
80
13
2005 2006 2007 2008 2009 2010 2011 2012e
41
Consolidated net revenuesR$ million
The growth was leveraged by the increase of 17.8% in the rental revenues.
Rentals Seminovos
408.4 537.4 655.0 842.9 898.5 1,175.3 1,450.0
340.8 401.4
446.5588.8
850.5980.8 922.4
1,468.1
340.7 373.3
1,321.9
2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12
681.5 774.713.7%
17.8%
CAGR: 22.7%
854.91,126.2
1,505.51,823.7
2,918.1
1,820.9
2,497.2
23.4%
16.9%
42
EBITDA R$ million
Car rental margin was impacted by loss of scale, due to a lower growth rate.
2.8%
53.8%
68.6%
46.9%
2011
2.6%
52.3%
68.0%
45.3%
2010
5.6%
53.3%
69.1%
45.9%
2008
49.9%50.7%51.1%54.5%52.9%53.6%Rentals consolidated
2.6%
66.2%
42.0%
1Q12
3.9%
66.0%
44.0%
1Q11
1.1%
68.7%
41.9%
2009
4.6%
71.4%
43.4%
2006
5.5%
71.3%
46.0%
2007
13.2%Used car sales
65.5%Fleet Rental
47.5%Car rental
2005Divisions
277.9 311.3403.5
504.1 469.7
649.5
821.3
186.2 210.0
2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12
CAGR: 19.8%
12.8%
26.5%
43
Average depreciation per car
Depreciation is in line with the Company’s expectation for the current scenario.
1,536.0 1,683.91,965.8
332.9
2,546.0 2,577.0
939.1492.3
2005 2006 2007 2008 2009 2010 2011 1Q12
Hot used car market
Financial crisis effect
3,509.74,185.34,133.0
2,981.32,383.3
4,371.75,083.1
2,395.8
2005 2006 2007 2008 2009 2010 2011 1Q12
44
Consolidated net incomeR$ million
Net income growth of 14.3% superior to the growth of 12.8% in the EBITDA.
16.4%
72.763.6
291.6250.5
116.3127.4
190.2138.2
106.5
2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12
14.3%
9.1
(0.8)
(0.8)
(1.4)
(11.7)
23.8
(3.5)
27.3
Var. R$
41.1
(23.6)
(48.9)
(3.0)
(55.2)
171.8
7.0
164.8
Var. R$
190.2
(81.4)
(74.4)
(14.4)
(43.1)
403.5
46.4
357.1
2007
127.4
(46.6)
(133.3)
(18.3)
(178.5)
504.1
54.5
449.6
2008
291.6
(125.1)
(179.0)
(24.1)
(201.5)
821.3
41.4
779.9
2011
16.4%
23.3%
37.6%
14.2%
37.7%
26.5%
20.3%
26.8%
Var. %
116.3
(47.2)
(112.9)
(21.0)
(172.3)
469.7
10.6
459.1
2009
250.5
(101.5)
(130.1)
(21.1)
(146.3)
649.5
34.4
615.1
2010
12.8%210.0186.2EBITDA Consolidated
14.3%
2.9%
1.9%
23.0%
25.3%
-26.3%
15.8%
Var. %
72.763.6Net income
(28.2)(27.4)Income tax and social contribution
(43.6)(42.8)Financial expenses, net
(7.5)(6.1)Other property and equipment depreciation
(58.0)(46.3)Cars depreciation
9.813.3EBITDA – Used car sales
200.2172.9EBITDA – Rentals and franchising
1Q121Q11Reconciliation EBITDA x net income
45
Free cash flow - FCF
Cash generated before interest expenses was used for the reduction of the accounts payable to OEMs.
(*) without technical discount deduction
(4,562)
13.2
(211.8)
-
225.0
(16.8)
123.8
(249.5)
373.3
118.0
(29.8)
(29.6)
340.7
(373.3)
210.0
1Q12
9,178
176.2
32.7
(272.0)
415.5
(63.0)
(36.4)
(1,504.5)
1,468.1
514.9
(83.9)
(83.0)
1,328.6
(1,468.1)
821.3
2011
18,649
(0.8)
111.3
(540.3)
428.2
(51.1)
(48.2)
(1,370.1)
1,321.9
527.5
54.5
(57.8)
1,203.2
(1,321.9)
649.5
2010
8,6429,9307,95710,3467,342Fleet increase (decrease) - quantity
295.4
241.1
(241.1)
295.4
(21.0)
(25.5)
(947.9)
922.4
341.9
(11.5)
(49.0)
855.1
(922.4)
469.7
2009
(283.1)
(188.9)
(299.9)
205.7
(39.9)
(54.6)
(1,035.4)
980.8
300.2
(44.8)
(52.8)
874.5
(980.8)
504.1
2008
(22.2)53.2 (161.3)Free cash flow before interest
(51.0)222.0 (25.5)Change in accounts payable to car suppliers (capex)
(221.9)(287.0)(194.0)Capex of car - growth
250.7 118.2 58.2 Free cash flow before growth and interest
(23.7)(32.7)(28.0)Capex – other property and equipment, net
11.5 (54.5)(49.5)Net capex for renewal
(839.0)(643.3)(496.0)Capex of car - renewal
850.5 588.8 446.5 Used car sales net revenues
262.9 205.4 135.7 Cash provided before capex
13.3 (4.8)(24.2)Working capital variation
(63.4)(42.7)(32.7)(-) Income tax and social contribution
760.0 530.4 361.2 Depreciated cost of used car sales (*)
(850.5)(588.8)(446.5)Used car sales net revenues
403.5 311.3 277.9 EBITDA
200720062005Free cash flow - R$ million
46
Debt profileR$ million
Strong cash position and a comfortable debt profile.
Debt profile in 03/31/2012- principal (R$ million)
52.026.0
432.0
562.0
303.5 315.8 245.2
102.9
2012 2013 2014 2015 2016 2017 2018 2019
Cash712.7
47
Debt – ratiosR$ million
Comfortable debt ratios.
Net debt x Fleet value
5.0x
1.4x
2.0x
52%
2010
4.8x4.6x4.2x 3.8x 5.4x 4.8x 3.3x EBITDA / Net financial expenses
1.2x
1.7x
51%
2011
1.5x
2.3x
57%
2009
2.0x
2.5x
72%
2008
1.2x1.3x0.7x1.4xNet debt / Equity
1.7x1.9x1.4x1.9xNet debt / EBITDA (*)
56%51%36%60%Net debt / Fleet value
1Q12200720062005END OF PERIOD BALANCE
* annualized
Net debt Fleet value
535.8 440.4765.1
1,254.51,078.6
1,281.1 1,363.4 1,407.9
900.21,247.7
1,492.91,752.6 1,907.8
2,446.7 2,681.7 2,528.7
2005 2006 2007 2008 2009 2010 2011 1Q12
annualized
48
Spread
ROIC and spread reflect the Company’s competitive pricing strategy.
13.6%10.9%
8.4% 8.8% 7.6% 7.3% 8.6%
24.8%
18.7%21.3%
17.0%
11.5%
16.9% 17.1%15.1%
7.1%
2005 2006 2007 2008 2009 2010 2011 1Q12
annualized
Cost of debt after tax ROIC
Spread
11.2p.p.7.8p.p. 12.9p.p.
8.2p.p.4.0p.p.
9.6p.p. 8.5p.p.8.0p.p.
8.0
7.1%
15.1%
0.60x
25.1%
2,677.7
1Q12 a
8.5
8.6%
17.1%
0.59x
28.9%
2,445.3
2011
9.6
7.3%
16.9%
0.59x
28.6%
1,984.6
2010
8.2
8.8%
17.0%
0.53x
32.1%
1,642.3
2008
4.0
7.6%
11.5%
0.53x
21.9%
1,702.3
2009
12.97.811.2Spread (ROIC – Interest after tax) - p.p.
8.4%10.9%13.6%Interest on debt after tax
21.3%18.7%24.8%ROIC
0.58x0.55x0.67xTurnover of average capital investment (over rental net revenues)
36.9%34.5%37.0%NOPAT margin (over rental net revenues)
1,137.5 986.2 606.3 Average capital investment - R$ million
200720062005
49
Investment grade
Financial discipline and conservative policies of the Company were recognized by the 3 main rating agencies.
AA+(bra) Aa1.br brAAANational scale
BBB-Baa3 BBB-Global scale
Main highlights of the S&P upgrade report:
�Relevant market position of Localiza in the Brazilian car and fleet rental markets
�High operating efficiency
�Strong cash position
�Plenty of room in the contracted covenants
�Excellent presence in debt markets
�Solid relationships with banks
50
IR Team
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 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
CFO - RI RI RI
Website: www.localiza.com/ir E-mail: [email protected] Phone: 55 31 3247-7024