1 H05 Analystsand Investors Meeting

407 views
325 views

Published on

Published in: Business, Automotive
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
407
On SlideShare
0
From Embeds
0
Number of Embeds
13
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

1 H05 Analystsand Investors Meeting

  1. 1. Localiza Rent a Car S.A. 1H05 Analysts and investors meeting 0
  2. 2. Car rental industry historical - USA 1930 / 1996 1923 1926 1970 1980 1918 1950 1954 1960 1940 October Strong Car Large HFS Buys Expansion Walter Manufacturer Conglomerates Avis After War Jacobs in Participation Participation Sale to GM Chicago (RCA) in business Sale to First Reserves’ Public John Hertz Agencies in Centers Offering Airports Establishment NYSE 1
  3. 3. Car rental industry historical - USA 1997 1996 1998-2000 2000-2002 2003 2005 April November January June September Hertz and Avis is listed Industry`s Republic Ford WTC`s fall Budget are Substantial in NYSE Buys Announces (09/11/2001) listed in NYSE Increase Alamo Hertz`s IPO Ford Sells Republic Buys Budget to Value Team Rental Crisis in Industry Budget Buys Group Premier Begin of Recovery 2
  4. 4. Car rental industry : World Geographic distribution of total revenue Other 10% Asia - Pacific 15% United States 51% Europe 24% Source: Datamonitor 3
  5. 5. Car rental industry: USA Five groups = 92% 8% 10% 34% 18% 10% 20% Enterprise Hertz Avis + Budget Dollar + Thrifty Outros National + Alamo Source: Fleet Central. 2004 data 4
  6. 6. Car rental industry - Europe Six groups = 72% European Market of Car Rental European Market of Car Rental Revenue on 2001 Revenue on 1999 Avis Avis 15% 18% Other Europcar 41% Other 13% 28% Europcar 16% Hertz Sixt 11% 8% National Hertz Sixt Budget Budget 10% 6% 13% 5% National 5% 11% Source: CSFB, Datamonitor 5
  7. 7. Car rental industry: Brazil Four groups = 31% Market Share (2004) Localiza 16% Unidas 7% Avis 4% Hertz Others 4% 69% Source: Pactual Research, Datamonitor, ABLA, CSFB Research 6
  8. 8. Car rental industry: Brazil Number of rental companies in Brazil have been decreasing... Number of car rental companies 3,000 2,511 2,340 2,500 1,985 2,000 1,500 1,000 500 - 2002 2003 2004 Source: Pactual Research, Datamonitor, ABLA, CSFB Research 7
  9. 9. Car rental industry: Brazil ...while fleet have been increasing Total Fleet (thousand car) : +7% CAGR 203,7 181,9 178,0 2002 2003 2004 Source: Pactual Research, Datamonitor, ABLA, CSFB Research 8
  10. 10. Car rental industry: Brazil USA and Europe Operation Localiza`s Operation USA and Europe Operation Localiza`s Operation Consolidated market Fragmented market Companies, in general, are Strong presence in all segments, specialized in certain segments operating synergies and scale Fleet owner, having negotiation power Buy back contracts with with manufacturers and car sales manufacturers know-how Frequent changes in management Stable management Localiza`s business model is favorably comparable to both international leaders companies in segment 9
  11. 11. Characteristics: car rental and fleet rental Business Retail Wholesale Clients portfolio Very large Concentrated Operation Decentralized Centralized Fixed costs High Low Gain of scale High Lower Seasonality Yes No Yield management Yes No Utilization rate 60 – 70% 98 – 99% Fleet Standardized Diversified (Tailor – Made) Car’s age 12 – 18 meses 12 – 48 meses GPD’s reflex High Lower Intensive capital Yes Yes Asset sale Yes Yes 10
  12. 12. Car rental industry: Brazil Car rental operating cycle – Ex. 1 year + Revenues FLEET FLEET FLEET BUSINESS OPERATION ACTIVATION SALE SHUT DOWN - Expenses +/- 35 8 319 3 0.8% 9.6% 2.0% 87.4% +/- 365 DAYS 11
  13. 13. Car rental industry: Brazil Financial cycle of car rental business Car Sales Principal Revenue Financing 90 100 Revenues Expenses 1 2 11 12 100 Tariffs would be defined 120 in order to match profitability Car and competitiveness Payment acquisition Principal + Interest 12
  14. 14. Localiza: timeline 70’s 80’s 90’s 00’s 70’s 80’s 90’s 00’s Settled in 1973 with Intensive Starts used car Consolidated its Settled in 1973 with Intensive Starts used car Consolidated its 6 used Beatle fleet geographic sales operation to business model and 6 used Beatle fleet geographic sales operation to business model and expansion final consumers platform expansion final consumers platform Geographic Geographic expansion start In 1981, it was the Franchising is Reaches more than expansion start In 1981, it was the Franchising is Reaches more than largest car rental expanded to other R$ 600 million in largest car rental expanded to other R$ 600 million in company in Brazil in Latin America sales and an company in Brazil in Latin America sales and an number of agencies countries EBITDA of R$ 200 number of agencies countries EBITDA of R$ 200 million million Starts its franchising In 1997, DLJ private Starts its franchising In 1997, DLJ private activities in Brazil in equity acquires R$ 350 million of activities in Brazil in equity acquires R$ 350 million of 1983 33.3% of the Debentures Public 1983 33.3% of the Debentures Public Company Offering Company Offering Still in 1997, it Initial Public Still in 1997, it Initial Public issues US$100 Offering -- Bovespa/ issues US$100 Offering Bovespa/ million of Senior Novo Mercado million of Senior Novo Mercado Notes Notes Creates specialized Creates specialized company in fleet company in fleet management management Number of 7 307 7 307 Agencies (1) 13 (1) At the end of 70 decade and in June 30, 2005
  15. 15. Shareholders and corporate structure 18.95% 12.6% 18.95% 12.6% 36.9% Antonio Flavio Salim Eugenio Free Float Claudio Resende Resende Mattar Mattar Localiza 92.5% 92.5% 100% 100% 100% 100% Franchising Franchising Localiza Rental Total Fleet Prime (International) Brasil Car Rental International 99.9996% MFA (Argentina) 14
  16. 16. Localiza: company’s management Years in the Company Chief Executive Officer* Founder Salim Mattar Vice Chief Executive Officer* Founder Antonio Cláudio Vice Chief Executive Officer * Founder Eugenio Mattar Eugênia Rafael Car Rental 25 years Franchising 23 years Aristides Newton Total Fleet Daltro Leite 20 years Seminovos 15 years Marco Antônio Guimarâes Chief Financial Officer and IR* 20 years Roberto Mendes Silvio Guerra Investors Relations 11 years 15 * Estatutory Officers
  17. 17. Company overview #1 operator in Brazil with 91 corporate owned branches Segments: Individuals, Corporate, Travel Industry, Replacement, Mini Lease Largest fleet in Brazil: 20,877 cars EBITDA Share: 64% Core Business Presence in 8 countries: Brazil, Argentina, Bolivia, Chile, Ecuador, Mexico, Paraguay and Uruguay 216 Franchised agencies, with a fleet of 7.293 cars EBITDA Share: 1% #1 operator in Brazil with a fleet of 10,514 cars Approximately 200 corporate clients EBITDA Share: 35% 13 points of sale located in the country’s largest cities Support 9,856 sold cars in the first half of 2005 76.8% cars sold to final customers 16
  18. 18. Localiza: integrated business platform Rent a Car Core Business Franchising Fleet Management Synergy among the main business segments - Cross-Selling - Cost Reduction Used Car Sales Support 17
  19. 19. Localiza: market leadership (number of agencies – Brazil) 1Q05 80 57 77 229 Localiza network has a larger presence when compared to the sum of second, third and fourth competitors’ agencies Source: CSFB Research, Internal Data 18
  20. 20. Localiza: market leadership (number of agencies in airports) 1Q05 68 70 60 50 40 32 28 24 30 20 10 0 Localiza network has a larger presence in airports when compared to the sum of second and third competitors’ airport agencies Source: CSFB Research, Internal Data 19
  21. 21. Localiza: local peers comparison BR GAAP (R$ thousand) 2004 (1) Released Serasa Dallas Localiza Unidas Locaralpha Master Hertz (Avis) Consolidated Net revenue 97,780 46,133 33,584 36,976 nd 616,398 68,480 42,671 41,203 30,192 nd 381,858 Cost 29,300 3,462 (7,619) 6,784 nd 234,540 Gross income (6,577) --- --- (126) nd (46,771) Sales expense (19,223) 3,204 --- (5,671) nd (19,288) Adm. exp./ revenue/ oper. exp. 3,500 6,666 (7,619) 987 nd 168,481 Operating income (25,516) (7,367) (3,613) (870) nd (25,798) Net financial expense --- --- --- --- nd --- Equity result 24,974 1,149 10,159 --- nd 70 Non oper. Income (1,165) (183) (65) (26) nd (40,410) Taxes/ SC Net income 1,793 265 (1,138) 91 nd 102,343 Source: Serasa (1) Released in 02-25-05 (Gazeta Mercantil, Estado de Minas and Valor Econômico) 20
  22. 22. Localiza: local peers comparison 2004 Net Revenue (R$ thousand) Net Income (R$ thousand) 616,398 700,000 102,343 120,000 600,000 100,000 500,000 80,000 400,000 60,000 300,000 40,000 1,793 200,000 97,780 (1,138) 91 265 20,000 46,133 33,584 36,976 100,000 - 0 (20,000) Localiza Unidas Dallas Locaralpha Master Localiza Unidas Dallas Locaralpha Master (Avis) (Avis) Source: Serasa 21
  23. 23. Localiza: 1H05 highlights 19.5% increase in Net Income (R$31.4 million) when compared to 1H04 and EPS recorded R$0.92. EBITDA (R$ 134.7 million) 39.3% higher than 1H04. 42.3% volume growth in the business of car rental segment. 6.6% volume growth in fleet rental segment. Debentures issuance ended with an amount of R$350 million. We hired Pactual CTVM to serve as our shares market maker. Initial Public Offering concluded in June 23, with a distribution of 36.9% of total and voting capital for a price of R$11.50 per share. Payment of interest on own capital amounting to R$12 million, corresponding to R$0.19 per share 22
  24. 24. Results in US GAAP better reflects business performance Assumptions 1 - ASSUMPTIONS Year 1 Year 2 Year 3 Observations Car cost 100.00 Car Rental Revenue per year 50.00 50.00 50.00 Car sale net revenue 70.00 Sale Forecast at the end of third year Maintenance Cost 5.00 10.00 15.00 Increase as mileage grows Depreciation Cost BR-GAAP 20.00 20.00 20.00 Residual Book Value in year 3 is R$ 40.00 Depreciation Cost US-GAAP 15.00 10.00 5.00 Residual Book Value in year 3 is R$ 70.00 23
  25. 25. Results in US GAAP better reflects business performance Results in BR GAAP 2 - RESULTS IN BR-GAAP Year 1 Year 2 Year 3 Observations Rental Revenue 50.00 50.00 50.00 Car Sales Revenue - - 70.00 Total Revenue 50.00 50.00 120.00 Depreciation Cost 20.00 20.00 20.00 20% per year Linear Depreciation Maintenance Cost 5.00 10.00 15.00 Car Sales Cost - - 40.00 Total Cost 25.00 30.00 75.00 BR – GAAP Result 25.00 20.00 45.00 They don’t reflect exactly the performance Margin over Rental Revenue 50% 40% 90% In periods BR – GAAP Depreciation BR GAAP depreciation is not based on market value foreseen for each car sale, model and mileage driven. It’s calculated by linear method, fixed, of 20% for any model. In the exemple above, total depreciation in 3 years is R$ 60.00 and the residual book value is R$ 40.00. 24
  26. 26. Results in US GAAP better reflects business performance Results in US GAAP 3 - RESULTS IN US-GAAP Year 1 Year 2 Year 3 Observations Rental Revenue 50.00 50.00 50.00 Car Sale Revenue - - 70.00 Total Revenue 50.00 50.00 120.00 SOYD Method Depreciation Depreciation Cost 15.00 10.00 5.00 Maintenance Cost 5.00 10.00 15.00 Sold Cars Cost - - 70.00 Total Cost 20.00 20.00 90.00 US-GAAP Result 30.00 30.00 30.00 Margin over Rental Revenue 60% 60% 60% US-GAAP Depreciation US GAAP Depreciation is based on market value foreseen for each car sale (by model and mileage driven foreseen). It’s calculated bu SOYD method (sum of years: 3 + 2 + 1 = 6) : 3/6 in the first year, 2/6 inh the second year and 1/6 in the third. In the exemple above, total 3 years depreciation is R$ 30.00 and the residual book value is R$ 70.00 Each car depreciation, in US GAAP, is periodically revised because of the changes in forecasts for used car sales prices 25
  27. 27. Results in US GAAP better reflects business performance Conclusion 4 - BR-GAAP x US-GAAP Result Year 1 Year 2 Year 3 TOTAL Results in US-GAAP 30.00 30.00 30.00 90.00 Results in BR-GAAP 25.00 20.00 45.00 90.00 Conclusion: • Sum of 3 years results is the same in BR-GAAP and US-GAAP. • All the industry major players presents its results in international acconting procedures (US GAAP) • US GAAP is a requirement for BOVESPA’s Novo Mercado . 26
  28. 28. Financial highlights (R$ million, USGAAP) Net Income Net Revenue 84 % CAGR: + 106 +46% + 20% 15% CAGR: + 91 57 69* 425 64* 48 634 290 532 477 27 2002 2003 2004 1H04 1H05 2002 2003 2004 1H04 1H05 * Pro forma result disregarding mark-to-market (MTM) of derivatives contracts. In this case, CAGR would be 19% 27
  29. 29. Financial highlights (R$ million, USGAAP) Net Debt EBITDA + 31% 19 % CAGR: + 367 18% +39 % CAGR: + 281 281 210 197 135 152 150 97 87 2002 2003 2004 12/31/04 06/30/05 2002 2003 2004 1H04 1H05 28
  30. 30. Operating performance Fleet Net Revenue EBITDA (R$ million, USGAAP) 313 6% +8 % 3 +8 20,877 191 168 76 +70% Car Sales 80 86 11,379 39% 51 122 Car Rental 88 1H04 1H05 1H04 1H05 1H04 1H05 +24% -9% 10,514* 119 108 8,501* Car Sales +4% 54 39 +6% 47 45 69 65 Car Rental 1H04 1H05 1H04 1H05 * Includes managed fleet 1H04 1H05 29
  31. 31. 1H05 EBITDA by segment (R$ million, USGAAP) Margin 32% % of Total 2 135 47 1% 2Q05 23 35% 1Q05 24 86 36 2Q05 64% 1Q05 50 Car Rental Fleet Rental Franchising Total 100% 30
  32. 32. Income before taxes per segment JAN TO JUN 2005 Rental Fleet Franch. Total Cars Fleet SubTotal Serv. and sales net revenue 122,351 68,902 191,253 229,864 3,396 424,513 Serv. and sales costs (45,518) (14,664) (60,182) (201,175) (2,063) (263,420) Gross Income 76,833 54,238 131,071 28,689 1,333 161,093 Operating Revenue (expense) (19,294) (5,656) (24,950) (14,174) (93) (39,217) Op. Income before financial effects 57,539 48,582 106,121 14,515 1,240 121,876 Net financial expenses (1,982) (297) (2,279) (39,389) (27) (41,695) Non Operating Result (1) 1 - - (1) (1) Income (loss) before taxes/SC 55,556 48,286 103,842 (24,874) 1,212 80,180 Margin 2005 45.4% 70.1% 54.3% -10.8% 35.7% 18.9% Margin 2004 45.4% 70.9% 56.2% -11.4% 41.9% 24.8% 31
  33. 33. Income before taxes per segment (1H04 / 1H05) (R$ million, USGAAP) Fleet Total +11% 80 72 +40% +4% 56 48 46 40 42% 36% 19% 25% 45% 45% 71% 70% +67% 1 1 1H04 1H05 1H04 1H05 1H04 1H05 1H04 1H05 1H04 1H05 -11% -11% (15) Net Margin (25) 32
  34. 34. Net income breakdown (R$ million, USGAAP) Car Rental and Used Car Sales Car Rental and Net Revenues Used Car Sales Operating +134.2 Expenses Total of Other Expenses +0.9 Depreciation Net Taxes Financial -97.2 +1.3 Result -9.1 -20.8 57.4 +19.5% 48.1 Net Income Net Income 1H05 1H04 Net Margin: 13.5% Net Margin: 16.6% Earnings per share: R$0.92 Earnings per Share: R$3.13* (*) Pro-forma income would be 0.78/share without the 4:1 split. 33
  35. 35. Fleet rental evolution Fleet at the end of the period +83% 25% CAGR: + 20,877 19,531 12,590 11,379 12,418 2002 2003 2004 1H04 1H05 CAGR: -5% +24% 11,349* 10,879* 10,514* 9,793* 8,501* 2002 2003 2004 1H04 1H05 * Includes managed fleet 34
  36. 36. Investment in fleet # of Purchased Cars 15,364 15,062 22,182 11,821 11,811 11,758 493 297 288 248 215 Investment in Fleet (1) 186 (R$ million, USGAAP) 2001 2003 2004 1H05 2002 2000 (1) Includes accessories expenses 35
  37. 37. Used car sales Number of Sold Cars 15,715 15,468 13,331 10,430 9,856 6,173 2000 2001 2002 2003 2004 1H05 36
  38. 38. Operating income over rental net revenue R$ thousand Income/Revenue 350,000 70% 300,000 60% 250,000 50% 200,000 40% 150,000 30% 100,000 20% 50,000 10% 0 0% 1999 2000 2001 2002 2003 2004 1S05 Operating Income Rental Net Revenue Income/Revenue 37
  39. 39. Annual leverage Debt/EBITDA x R$ thousand 400,000 1.60 350,000 1.40 300,000 1.20 250,000 1.00 200,000 0.80 150,000 0.60 100,000 0.40 50,000 0.20 0 0.00 1999 2000 2001 2002 2003 2004 1H05 Net Debt EBITDA* Debt/EBITDA * 1H05 EBITDA annualized 38
  40. 40. Net debt* / Fleet value * Excluding short terms credits 53.2% 56.3% 46.2% 51.2% 45.4% 45.9% 22.4% 16.3% 2002 2003 2004 06/30/04 06/30/05 1999 2000 2001 Our ratio Net debt / Fleet value has remained stable at roughly 50% 39
  41. 41. Annual debt / Equity Debt/Equity R$ thousand 400,000 120% 350,000 100% 300,000 80% 250,000 200,000 60% 150,000 40% 100,000 20% 50,000 0 0% 1999 2000 2001 2002 2003 2004 06/30/05 Net Debt Equity Debt/Equity 40
  42. 42. Corporate governance - Localiza Corporate Governance is not simply meeting Bovespa’s requirements, but having atitudes in line with the interests of major shareholders, the management and minority shareholders. 1- Transparency (Disclosure) Yes No Note 1.1 – Portuguese and English website x 1.2 – Investors Meeting x 1.3 - Road-shows x 1.4 - CRM with Demand Segmentation x Project 1.5 – Disclosure Policy / Material facts x 1.6 – Calendar of Events x 1.7 – Imediate Communication through CVM/Bovespa (ITR/IAN/DFP/IPE) and Market (mailing to 4.200 addresses) x 1.8 – Conflict Solution by Arbitration determined in Bylaws x 1.9 - Independent Audit x 41
  43. 43. Corporate governance - Localiza 2 - Fairness Yes No Note 2.1 – Code of Ethics x 2.2 – Listed to Novo Mercado x 2.3 - Tag-Along ( 100% ) x 2.4 - Dividends (We don’t have Automatic Reinvestment Program ) x 2.5 - Free-Float ( Minimum of 25% of Free Float ) x 2.6 – Capital only represented by Common Shares x 42
  44. 44. Corporate governance - Localiza 3 - Accountability Yes No Note x Foreseen 3.1 – Fiscal Council Established x 3.2 – Board of Directors composed by 5 to 9 Members (the majority is not independent) x 3.3 – One Year Terms, with reelection x 3.4 – Board of Directors members Elected by Minority Shareholders x 3.5 – Independent Directors Highly Qualified x Project 3.6 – Board of Directors with Standardized Activities as per Internal rules x 3.7 – Annual Report presents the Management Participation in the Company’s Capital x 3.8 - Annual Report presents the Management’s Individual or Aggregated Compensation x 3.9 –Financial Statements in International Accounting Procedures are available x 3.10 - Auditing, Internal Controls ( COSO ) Project x 3.11 – The Main Executive is Annually Evaluated by Board of Directors x 3.12 – Board of Directors’ Payment is Structured in order to follow the Company’s Results 3.13 – The Company’s Main Executive and the Chairman of Board of Directors are the Same x Person 3.14 – Availability of: x 3.14.1 – Report of Related Parties Contracts x 3.14.2 – Shareholders Agreement x 3.14.3 – Stock Option Programs 43
  45. 45. Corporate governance - Localiza 4 - Compliance Yes No Note 4.1 – We obbey Regulatory Rules Expressed in By-Laws, Internal Rules and Legal Institutions of the Country x 4.2 - Image x 4.3 - Committees 4.3.1 - Ethics Committee x 4.3.2 - Disclosure and Trading Committee x 4.3.3 – Audit Committee x Fiscal Council 4.3.4 - Fiscal Committee x Project Under 4.3.5 – Risk Analysis Committee x Development Finalist on ANEFAC (National Association of Finance Administration and Accounting Executives) Transparency Trophy in 2005 44
  46. 46. Total Fleet receives Valor 1000 Award Total Fleet was chosen the best Company in Specialized Services sector, according to a research made by Valor newspaper. The award, which is on its fifth edition, selects, among the 1000 largest companies, the sector`s winners (27) which differ from the others by their innovation and technical rigor. Total Fleet`s strong financial performance, high productivity, quality and tranparency associated to committed and qualified employees were the main aspects to conquer the award. 45
  47. 47. Social Responsibility Cultural project which 30 projects were supports culture for more supported and 6,280 than 20 years in the whole people were country (Brazil). contemplated by the program only in 2004. Social project which aims VOLUNTARYNESS: to support institutions 2.3 ton of foods were through voluntaryness collected besides of and donations through hygienics items and the Fundo Social da educational material for Criança e Adolescente. 55 children DONATIONS: Missão Ramacrisna and Cidade dos Meninos 46
  48. 48. Social Responsibility Educational project which 5.645 children were helped by fosters integration the program in 2004. opportunities from business world through schools. schools. Localiza is one of the donators of Junior Achievement, whose Achievement, president, in Minas Gerais, is president, Eugenio Mattar. Program which develops As an initial action, action, educative campaigns besides meetings are being made of several initiatives in order with 5,000 Company`s Company`s to prevent accidents and suppliers in the whole traffic violence. It is a long violence. country; term project which will seek meetings with the 7,500 people conscientization on travel agents, which are agents, the subject by promoting an Localiza`s partners; partners; optimistic point of view. view. meetings for the conscietization of the 2,400 employees, plus employees, distribution of manuals, manuals, caps and stickers with the campaign`s theme. campaign`s theme. 47
  49. 49. Comparison with international peers LTM 2Q05 (1) 143(2) EBITDA (US$ MM) 91(2) 2,471 447 326(2) EBITDA Margin 32.2% 33.2% 30.2% 11.1% 9.8% (4)(2) 31(2) Net Income (US$ MM) 37(2) 51 393 Net Margin 13.0% 5.3% 3.4% 1.1% -0.3% n.d. n.d. 13.7 14.4 23.3 P/E 2005(3) (x) n.d. n.d. 6.1 4.3 4.0 EV/EBITDA(3) (x) (1) LTM June 05 (Localiza, Dollar Thrifty); LTM March 05 (Hertz, Sixt e Avis Europe) (2) Translated to US Dollars at average rate R$2.729 / US$1.00 and 0.805 / US$1.00 (3) P/E= At Stock Price as of August 4 and EPS supplied by First Call 48
  50. 50. Performance and average volume RENT3 RENT3 X IBOVESPA 17.0 35 16.0 30 RENT3 Volume (R$ thousands) 15.0 25 14.0 20 IBOVESPA Price CDI 13.0 15 12.0 10 11.0 5 10.0 0 27 y ay 16 g 19 g 24 g 29 g ug n n 14 n 17 n 22 n 27 n 30 n un g 11 g p 18 l 21 l 26 l 29 l ul l 13 l Ju Ju u u u u a u u u u u u u u Ju Ju Ju Au Au Se -J -J -J -J -J -M -M -A -A -A -A -A -J -J -J -J -J 5- 8- 1- 6- 9- 3- 8- 1- 23 36.9% Free Float and foreign investors participation of roughly 80% Average Volume of R$2.8 million or Performance RENT3 since IPO: +43% (1) R$2.4 million excluding date 05/23/05 Relative Performance RENT 3 x IBOV: +27% (1) 49 (1) From May 23 (Initial Public Offering date) to September 1, 2005
  51. 51. Disclaimer - Forward Looking Statements The material that follows 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. 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. 50

×