2. Agenda
1. The Company
2. Drivers and opportunities
3. Competitive advantages
4. Financials
5. 2012 Brazilian Macroeconomic scenario
2
3. Company: integrated business platform
64,688cars 31,629 cars
2.8 million clients 687 clients
247 locations 312 employees
4,090 employees
Synergies:
bargaining power
cost reduction
cross selling
12,958 cars 74.6% sold to final consumer
202 locations in Brazil 66 stores
47 locations in South America 37 cities
32 employees 870 employees
1,251 employees in franchisee Deactivated fixed asset sale
locations
This integrated business platform gives Localiza flexibility and superior performance.
3
Based on the 4Q11
4. Car rental financial cycle
1-year cycle
Car sale revenue
$26.2
Revenue
1 2 3 4 5 Expenses, interest and tax 8 9 10 11 12
$27.9
Car acquisition
Car Rental Seminovos Total
per operating car per operating car 1 year
R$ % 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% Spread
Cost of debt after tax 8.6% 8.9p.p.
* Investment in cars and PP&E (8%) 4
5. Fleet rental financial cycle
2-year cycle Net car sale revenue
26.4
Revenue
1 2 3 4 5 Expenses, interest and tax 20 21 22 23 24
33.8
Car acquisition
Fleet Rental Seminovos Total
per operating car per operating car 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% Spread
Cost of debt after tax 8.6% 7.5p.p.
5
6. Company: managing assets
Targeted spread
Equity
Pricing strategy
Assets (cars)
Funding
Assets (cash)
Debt Profitability comes from Cash to renew the fleet
rental divisions
Flexible and liquid assets.
6
7. Company: stable management
BOARD OF DIRECTORS
CEO Salim Mattar – 38y
Car
Acquisition
Legal
COO Eugênio Mattar – 38y
Human Administration
Financial Resources IT
Gina Rafael – 30y
Bruno Roberto Mendes – 26y Daltro Leite – 26y
Andrade – 19y
João Andrade – 7y
Localiza has a lean and efficient structure.
Marco Antônio The succession process is already planned.
Guimarães – 21y
7
9. Company: GDP elasticity
Rental revenues growth elasticity x GDP
Localiza
5.5x
Sector
GDP 2.8x
2005 2006 2007 2008 2009 2010
The drivers combined with Localiza’s competitive advantages resulted in a growth above the industry level.
9
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
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”
Institutional Investor’s ranking:
11
12. Agenda
1. The Company
2. Drivers and opportunities
3. Competitive advantages
4. Financials
5. 2012 Brazilian Macroeconomic scenario
12
14. Car rental drivers: investments
Investments in Brazil Investments by sector
12.3%
20.8%
154
137
R$85.8 bn R$150.4 bn 106
18.7%
38
R$16.8 bn 7 6 5 3
19.5%
n
as
i ty
ng
as
e
n
s
io
ag
er
ti o
en
g
ic
si
at
th
il/
ew
rta
tr
ou
ic
Ar
O
O
ec
R$174.6 bn
un
/s
o
H
sp
El
er
m
at
an
m
W
co
Tr
le
18.4%
Te
R$28.7 bn
Invested
To be invested
R$456 bn to be invested.
14
Source: EXAME yearbook, 2011-2012
15. Car rental drivers: income and affordability
GDP per capita
(R$ thousands) 21.3
19.0
16.0 16.6
14.2
11.7 12.8
10.7
8.4 9.5
6.9 7.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Car rental affordability
545
51% 510
465
415
38% 380
37% 35% 350
300
260
240
180 200
151 31%
27%
22% 20%
18% 16% 15% 15%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Monthly m inim um salary (R$) Daily rental price over m inim um salary (%)
Income increase and stable daily rental rates increased car rental affordability.
15
Source: IBGE and Valor website
16. Car rental drivers: consumption
A and B classes - million Potential consumption of Brazilians in 2011 - billion
31 Total population
%
% 55.0 R$ 2,500
13 53.8 20
A and B
classes
2003 2009 2014e R$ 930
Air traffic passengers - million Credit card holders - million
%
20.3
% 16.2 179 % 35.3
%
% 154 .0 % 13.3 69
80.3 128 200
45 51
71
15
2003 2009 2010 2011 2003 2009 2010 2011
Strong domestic drivers leads to higher volumes.
16
Source: FGV, BCB, Infraero, Gol, Abecs and Exame (Dec/2011)
17. Car rental opportunities: consolidation
Car rental locations in Brazil
Airport locations Off-airport locations
Localiza
Others 349 Hertz
Avis 31 Localiza 76 Unidas
30 100 72
Avis
24
Others
Unidas 2004
27 Hertz
41
Off-airport market is still fragmented.
17
Source: ABLA and each company website (January, 2012)
18. Car rental strategy: organic growth
Brazilian distribution Network expansion in Brazil
415 449
381
312 346
254 279
2011 Branches
2005 2006 2007 2008 2009 2010 2011
Owned 13
Franchised 23
Total 36
Localiza’s network is still being expanded.
18
19. Fleet rental drivers: outsourcing trend
Outsourced fleet penetration
Brazilian Market World (%)
58.3
Corporate fleet:
46.9
4,200,000
37.4
Targeted fleet: 24.5
16.5
500,000 13.3
8.9
5.4
Rented fleet:
nd
l
232,000
d
in
k
ce
y
zi
lic
U
n
an
a
ra
la
an
la
b
Sp
m
ol
B
pu
Po
Fr
er
H
Re
G
ch
ze
C
31,629
Less than 50% of targeted fleet is rented.
19
Source: ABLA and Datamonitor
20. Used car sales drivers: affordability and penetration
Middle class - million Car purchase affordability
1 6 0 6 0 0
148 128 510 545
465
115
1 4 0
113 104 415
5 0 0
94.9
1 2 0
97 93 380
%
19.1 80
4 0 0
1 0 0
66
. 8% 350
8 0 3 0 0
43 6 0
300
240 260 75 68
2 0 0
58
4 0
180 200 56 52 1 0 0
2 0
151
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2003 2009 2014e
Number of minimum w ages to buy a new car Monthly minimum salary (R$)
# of inhabitants per car (2009) # of inhabitants per car - Brazil
USA 1.2
8.0 7.9
Italy 1.5
7.4
France 1.7
6.9
UK 1.8 6.5
Germany 1.8
Mexico 3.6
Brazil 6.5
2005 2006 2007 2008 2009
Income increase and credit availability are the major drivers for car sales.
Source: Bradesco, ANFAVEA, Exame (Dec/2011), PIB per capita: IPEADATA. 20
21. Brazilian car market: new cars x used cars
New cars X used cars
8,862,951
8,429,309
7,260,054
Used cars
7,016,576 7,114,870 7,071,525
6,743,699
2.5x 2.6x
2.3x
3.0x 2.7x
4.3x 3.7x
New cars
3,329,170 3,425,499
3,009,482
2,671,338
2,342,059
1,620,657 1,830,402
2005 2006 2007 2008 2009 2010 2011
Used car market is currently 2.5x the new car market.
21
Source: FENABRAVE (Autos + light commercial)
22. Brazilian car market : 2011 market share
Localiza used cars x Car market
Used cars sold: 50,772
0.6% 1.5% 5.4%
0KM
Used Up to 2 years
3,425,499
8,862,951 476,827
Used Seminovos 0km Seminovos 2 years old Seminovos
22
Source: Fenabrave 2011
23. Brazilian car market: monthly sale per store
Monthly sale / lots*
109
96 91 90
82 84 81
48
FIAT VW FORD GM SEMINOVOS* SECTOR RENAULT PEUGEOT
2010**
* Average sales per lots (excluding auto malls – 10 stores)
** Total sales divided by the number of dealers
Localiza Seminovos monthly sale per store is in line with market average.
23
Source: Anfavea (National OEM’s Association); number of dealers from each OEM association website (nov/11 )
24. Used car sales strategy: network expansion
Brazilian distribution New lots
66
49 55 Points of
32 35 Status
26 sale
13
In construction and
14
prospection
2005 2006 2007 2008 2009 2010 2011
The network is being expanded to support rentals’ growth.
24
25. Used car sales: sold cars evolution
Monthly average of sold cars
4,545
4,359
4,159
3,940
3,860
2010 1Q11 2Q11 3Q11 4Q11
Sales profile
39% 51% 43% 42% 41%
61% 49% 57% 58% 59%
2010 1Q11 2Q11 3Q11 4Q11
Financed In cash
The increase on sales was supported by the opening of new points of sale.
The macro prudential measures impacted the sales profile in the 1Q11.
25
26. Agenda
1. The Company
2. Drivers and opportunities
3. Competitive advantages
4. Financials
5. 2012 Brazilian Macroeconomic scenario
26
27. Competitive advantages: 38 years of experience in managing assets
Profitability comes from rental divisions
Renting cars Selling
Raising Buying cars
money cars
$
$
Cash to renew the fleet or pay debt
27
28. Competitive advantages: raising money
Raising Buying Selling
Renting cars
money cars cars
Investment grade: lower spreads and longer terms
Global Scale BBB- Fitch
BBB+ S&P B+ S&P B+ Fitch B2 Moody's
Baa3 Moody’s
National Scale Aa1.br Moody’s
A (bra) Fitch BBB+ (bra) Fitch A- (bra) Fitch
AA+(bra) Fitch
Localiza raises money with lower spreads when compared to Brazilian competitors.
As of December, 2011. 28
29. Competitive advantages: buying cars
Raising Buying Selling
Renting cars
money cars cars
Better conditions due to higher volumes
Localiza’ share in national sales of the main Purchases by brand in 2011
automakers in 2011: GM, FIAT, VW, Ford
and Renault
Renault
Others
Ford 9.9%
1.3%
11.0%
2.3%
Fiat
GM
39.3%
21.0%
VW
17.5%
Localiza announced the purchase of 100,000 cars for 2H11 and 2012.
29
30. Competitive advantages: renting cars
Raising Buying Selling
Renting cars
money cars cars
Brand Know How Brazilian distribution
450
# of branches
270
54
99
117
# of cities
315
80 75
40
Localiza Hertz Unidas Avis
The Company is present in 213 cities where the other largest networks do not operate.
30
Source: Each company website (January, 2012)
31. Competitive advantages: selling cars
Raising Buying Selling
Renting cars
money cars cars
Sales to final consumer 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.
31
32. Agenda
1. The Company
2. Drivers and opportunities
3. Competitive advantages
4. Financials
5. 2012 Brazilian Macroeconomic scenario
32
33. Highlights
Investment grade by Moody’s and Fitch
Included at Bovespa Index starting 01/02/2012
Elected the best CEO, CFO and IR of the transportation
sector by Institutional Investor Magazine ranking
33
34. Highlights
Net Revenues - Consolidated
Consolidated EBITDA
2,918.1
16.9%
R$ million
2,497.2
%
R$ million
1,3 2 1. 9
1,4 6 8 .1 649.5 26.5 821.3
23.4%
1,175.3 1,4 50 . 0
2 0 10 2 0 11 2010 2011
Rentals Used car sales
Consolidated net income End of period fleet
96,317
88,060
9.4%
R$ million
Quantity
31.629
26.615
291.6
16.4%
250.5
61.445 64.688
2010 2011 2010 2011
Car rental Fleet rental
34
35. Car Rental Division
# daily rentals (thousand)
24.6 % 12,794
CAGR: 10,734
7,940 8,062
5,793
4,668 1 0 .3 %
3,411
19 .2% 3,015 3,324
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
Net revenues (R$ million)
: 24.9% 980.7
CAGR
802.2
565.2 585.2
%
13.1
428.0
346.1
258.6 3%
22. 235.7 266.5
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
Revenues from the Car Rental division grew 3.8x in six years.
35
37. Net Investment
Fleet increase * (quantity)
18,649 9,178
9,930 8,642 65,934
10,346 7,957 59,950
7,342 47,285 50,772
12,528
44,211 43,161 8,712
38,050 34,281 34,519
33,520 30,093
26,105 25,327
23,174 21,790
18,763
12,799 13,078
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
Purchased cars Sold cars
* It does not include theft / crashed cars.
Net investment (R$ million)
588.5 308.4
354.5 1,910.4
281.8 1,776.5
341.5 210.4 337.7
1,468.1 276.5
243.5 1,335.3 1,321.9
1,204.2
1,060.9 980.8
930.3 850.5 922.4
690.0 720.0 656.7
588.8
446.5 382.3 380.2
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
Purchases (accessories included) Net used car sales revenues
In 2011 there were added 9,178 cars to the fleet with an investment of R$308.4 million.
37
38. Utilization rate and average fleet age
Car rental division
Elections’ effect
74.1%
9 0. %
0
66.2% 69.9% 66.3% 68.2% 68.9% 69.7% 68.9% 8 0. %
0
7 0. %
0
7.3 7.3 6 0. %
0
6.9 6.6 6.3 6.3 6.5 5 0. %
0
5.5 4 0. %
0
3 0. %
0
2 0. %
0
1 0. %
0
0 . %
0
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Average sold fleet
18.7 15.3 13.3 13.4 13.6 13.5 13.5 14.2
age (month)
Utilization rate Average operating fleet age
In 4Q11, utilization rate presented a growth of 2.6 p.p when compared to 4Q10.
38
39. Distribution
# of rental locations in Brazil
+34
415 449
346 381
279 312
254
2005 2006 2007 2008 2009 2010 2011
# of used car sales stores
+11
55 66
49
32 35
26
13
2005 2006 2007 2008 2009 2010 2011
Company is still expanding its footprint.
39
40. End of period fleet
Quantity
.9%
CAGR: 17 96,317
88,060 9 .4 %
70,295 31,629
62,515 26,615
46,003 53,476 22,778
35,865 23,403
17,790
14,630
11,762 61,445 64,688
47,517
31,373 35,686 39,112
24,103
2005 2006 2007 2008 2009 2010 2011
Car rental Fleet rental
Consolidated fleet grew 2.7x in six years.
40
41. Consolidated net revenues
R$ million
: 22.7%
CAGR 9%2,918.1
2,497.2 16.
1,823.7 1,820.9 1,468.1
1,505.5 1,321.9
1,126.2 980.8 922.4
854.9
588.8
850.5 722.2 7.0% 772.7
446.5 1,175.3 1,450.0 380.2
382.3
842.9 898.5 4%
408.4 537.4 655.0
23. 339.9 15.5% 392.5
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
Rentals Seminovos
Net revenue grew 3.4x in six years.
41
42. EBITDA
R$ million
9.8%
CAGR: 1 821.3
649.5
504.1 469.7
%
15.9
403.5
277.9 311.3
2 6 .5 % 188.3 218.3
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
Divisions 2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
Car rental 47.5% 43.4% 46.0% 45.9% 41.9% 45.3% 46.9% 43.7% 47.1%
Fleet Rental 65.5% 71.4% 71.3% 69.1% 68.7% 68.0% 68.6% 69.6% 67.8%
Rentals consolidated 53.6% 52.9% 54.5% 53.3% 51.1% 52.3% 53.8% 51.5% 53.6%
Used car sales 13.2% 4.6% 5.5% 5.6% 1.1% 2.6% 2.8% 3.5% 2.1%
EBITDA grew 26.5% in the year versus a 23.4% growth in rental revenues, in 2011.
42
43. Average depreciation per car – car rental
R$ per year
Financial crisis effect
Hot used car market 2,546.0 2,577.0
1,536.0 1,683.9
939.1
492.3 332.9
2005 2006 2007 2008 2009 2010 2011
R$ per quarter
1,942.5 1,993.2 1,986.0
1,492.3 1,580.5
1,318.0 1,251.9 1,331.0
1Q10* 1Q11* 2Q10* 2Q11* 3Q10* 3Q11* 4Q10* 4Q11*
* Annualized
Trend of a higher depreciation due to higher sales expenses, in 5Q11.
43
44. Average depreciation per car – fleet rental
R$ per year
5,083.1
4,371.7 4,133.0
3,509.7
2,981.3
2,383.3 2,395.8
2005 2006 2007 2008 2009 2010 2011
R$ per quarter
4,241.8 3,990.6 4,020.8 4,049.3 4,277.2
3,693.9
3,254.4
2,989.4
1Q10* 1Q11* 2Q10* 2Q11* 3Q10* 3Q11* 4Q10* 4Q11*
* Annualized
Depreciation increase reflects the market conditions for higher end cars.
44
45. Consolidated net income
R$ million
%
16.4
291.6
250.5
190.2
138.2 127.4
106.5 116.3 13.4%
69.4 78.7
2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11
Reconciliation EBITDA x net income 2007 2008 2009 2010 2011 Var. R$ Var. % 4Q10 4Q11 Var. R$ Var. %
EBITDA – Rentals and franchising 357.1 449.6 459.1 615.1 779.9 164.8 26.8% 175.1 210.3 35.2 20.1%
EBITDA – Used car sales 46.4 54.5 10.6 34.4 41.4 7.0 20.3% 13.2 8.0 (5.2) -39.4%
EBITDA Consolidated 403.5 504.1 469.7 649.5 821.3 171.8 26.5% 188.3 218.3 30.0 15.9%
Cars depreciation (43.1) (178.5) (172.3) (146.3) (201.5) (55.2) 37.7% (42.0) (57.9) (15.9) 37.9%
Other property and equipment depreciation (14.4) (18.3) (21.0) (21.1) (24.1) (3.0) 14.2% (5.8) (6.8) (1.0) 17.2%
Financial expenses, net (74.4) (133.3) (112.9) (130.1) (179.0) (48.9) 37.6% (41.3) (41.2) 0.1 -0.2%
Income tax and social contribution (81.4) (46.6) (47.2) (101.5) (125.1) (23.6) 23.3% (29.8) (33.7) (3.9) 13.1%
Net income 190.2 127.4 116.3 250.5 291.6 41.1 16.4% 69.4 78.7 9.3 13.4%
The increase in the basic interest rate and in depreciation have impacted 2011 net income.
45
46. Free cash flow - FCF
Free cash flow - R$ million 2005 2006 2007 2008 2009 2010 2011
EBITDA 277.9 311.3 403.5 504.1 469.7 649.5 821.3
Used car sales net revenues (446.5) (588.8) (850.5) (980.8) (922.4) (1,321.9) (1,468.1)
Depreciated cost of used car sales (*) 361.2 530.4 760.0 874.5 855.1 1,203.2 1,328.6
(-) Income tax and social contribution (32.7) (42.7) (63.4) (52.8) (49.0) (57.8) (83.0)
working capital variation (24.2) (4.8) 13.3 (44.8) (11.5) 54.5 (83.9)
Cash provided before capex 135.7 205.4 262.9 300.2 341.9 527.5 514.9
Used car sales net revenues 446.5 588.8 850.5 980.8 922.4 1,321.9 1,468.1
Capex of car - renewal (496.0) (643.3) (839.0) (1,035.4) (947.9) (1,370.1) (1,504.5)
Net capex for renewal (49.5) (54.5) 11.5 (54.6) (25.5) (48.2) (36.4)
Capex – other property and equipment, net (28.0) (32.7) (23.7) (39.9) (21.0) (51.1) (63.0)
Free cash flow before growth and interest 58.2 118.2 250.7 205.7 295.4 428.2 415.5
Capex of car - growth (194.0) (287.0) (221.9) (299.9) (241.1) (540.3) (272.0)
Change in accounts payable to car suppliers (capex) (25.5) 222.0 (51.0) (188.9) 241.1 111.3 32.7
Free cash flow after growth and before interest (161.3) 53.2 (22.2) (283.1) 295.4 (0.8) 176.2
Fleet increase - quantity 7,342 10,346 7,957 9,930 8,642 18,649 9,178
Positive free cash flow before interest in 2011, even after expanding the fleet by 9,178 cars.
(*) without technical discount deduction 46
47. Changes in cash and debt evolution
R$ million
FCF before
growth
415.5
Variation on
payables –
automakers
Net debt 32.7 Net debt
12/31/2010 12/31/2011
-1,281.1 - 1,363.4
(79.5)
(179.0) Dividends and
interest on own
(272.0) Interest capital paid
Investment in fleet
increase
65.5% of the cash generated was invested in expanding fleet by 9,178 cars.
47
48. Debt profile
R$ million
562.0
432.0
312.8 303.4
232.5
94.8 26.0 52.0
2011 2012 2013 2014 2015 2016 2017 2018 2019
Cash
711.0
Improving duration from 3.8 years in 2011 to 4.3 years in 2012.
Cash strengthening for an eventual adverse scenario.
48
49. Debt – ratios
R$ million
Net debt x Fleet value
2,446.7 2,681.7
1,907.8
1,752.6
1,492.9 1,363.4
1,247.7 1,254.5 1,281.1
1,078.6
900.2 765.1
535.8 440.4
2005 2006 2007 2008 2009 2010 2011
Net debt Fleet value
END OF PERIOD BALANCE 2005 2006 2007 2008 2009 2010 2011
Net debt / Fleet value 60% 36% 51% 72% 57% 52% 51%
Net debt / EBITDA 1.9x 1.4x 1.9x 2.5x 2.3x 2.0x 1.7x
Net debt / Equity 1.4x 0.7x 1.3x 2.0x 1.5x 1.4x 1.2x
EBITDA / Net financial expenses 3.3x 4.8x 5.4x 3.8x 4.2x 5.0x 4.6x
The Company is still presenting conservative indebtedeness ratios.
49
50. Spread
Spread
24.8%
21.3%
18.7% 17.0% 17.1%
16.9%
11.2p.p. 11.5%
7.8p.p. 12.9p.p.
8.2p.p. 9.6p.p. 8.5p.p.
4.0p.p.
13.6%
10.9%
8.4% 8.8% 7.6% 7.3% 8.6%
2005 2006 2007 2008 2009 2010 2011
Interest on debt after tax ROIC
2005 2006 2007 2008 2009 2010 2011
Average capital investment - R$ million 606.3 986.2 1,137.5 1,642.3 1,702.3 1,984.6 2,445.3
NOPAT margin (over rental net revenues) 37.0% 34.5% 36.9% 32.1% 21.9% 28.6% 28.9%
Turnover of average capital investment
(over rental net revenues) 0.67x 0.55x 0.58x 0.53x 0.53x 0.59x 0.59x
ROIC 24.8% 18.7% 21.3% 17.0% 11.5% 16.9% 17.1%
Interest on debt after tax 13.6% 10.9% 8.4% 8.8% 7.6% 7.3% 8.6%
Spread (ROIC – Interest after tax) - p.p. 11.2 7.8 12.9 8.2 4.0 9.6 8.5
ROIC reflects the pricing strategy of the Company for consolidating the market.
50
51. Agenda
1. The Company
2. Drivers and opportunities
3. Competitive advantages
4. Financials
5. 2012 Brazilian Macroeconomic scenario
51
52. 2012 Macroeconomic scenario
GDP evolution forecast
Accumulated in 4 quarters
3.70%
3.40%
2.90%
2.70% 2.60% 2.50%
4Q 11
1Q 12
2Q 12
3Q 12
4Q 12
1Q 13
Interest rate evolution forecast
11.00%
10.00% 10.00%
9.75%
9.50% 9.50%
1Q 12
2Q 12
3Q 12
4Q 12
1Q 13
4Q 11
52
Source: BR Central Bank – Market forecast system as of 01/20/2012 and Focus Bulletin
53. IR Team
Roberto Mendes Silvio Guerra Nora Lanari
CFO - RI RI RI
Website: www.localiza.com/ir E-mail: ri@localiza.com Phone: 55 31 3247-7024
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’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 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 herein
shall form the basis of any contract or commitment whatsoever.
53
