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Localiza completa 4 q11 eng

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  • 1. 1March / 2012
  • 2. Agenda1. The Company2. Drivers and opportunities3. Competitive advantages4. Financials5. 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 locationsThis 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 $27.9Car acquisition Car Rental Seminovos Total per operating car per operating car 1 year R$ % 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 33.8Car 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 ITGina Rafael – 30yBruno Roberto Mendes – 26y Daltro Leite – 26yAndrade – 19yJoão Andrade – 7y Localiza has a lean and efficient structure.Marco Antônio The succession process is already planned.Guimarães – 21y 7
  • 8. Company: growth and profitability track record Revenues consolidated % R: 24.4 2,918.1 CAG 2,497.2 1,823.7 1,820.9 1,4 6 8 .1 1,505.5 1,3 2 1.9 CAGR: 15.9% 1,126.2 9 8 0 .8 9 2 2 .4 854.9 8 5 0 .5 634.4 CAGR: 5 15 .7 5 8 8 .8 23.4% 4 5 7 .4 4 4 6 .5 1,4 5 0 .0 2 3 4 .1 2 9 6 .1 4 0 2 .7 3 0 3 .0 1,17 5 .3 2 12 .9 2 2 5 .9 8 4 2 .9 8 9 8 .5 5 3 7 .4 6 5 5 .0 3 3 1.4 4 0 8 .4 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Consolidated Rentals Used car sales EBITDA consolidated % : 22.6 CAGR 23.9% 821.3 CAGR: 649.5 504.1 469.7 403.5 278.1 311.4 154 152.1 197.8 134.3 149.9 42 62 85.2 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011GDP 3.4 0.0 0.3 4.3 1.3 2.7 1.1 5.7 3.2 4.0 6.1 5.2 -0.6 7.5 2.9Average 1.9 4.3 Average growth of roughly 25% p.a. in the last years. 8
  • 9. Company: GDP elasticity Rental revenues growth elasticity x GDP Localiza 5.5x Sector GDP 2.8x 2005 2006 2007 2008 2009 2010The drivers combined with Localiza’s competitive advantages resulted in a growth above the industry level. 9
  • 10. Company: market share - fleetCar Rental division Fleet Rental division 37.5% 12.5% Consolidated 23.5% 20.6% 20.8% 21.8% 21.4% 18.9% 2005 2006 2007 2008 2009 2010 10 Source: ABLA 2011 yearbook
  • 11. Company: recognitions and rewards2011 Valor 200 8th Company in growth and profitabilityMaiores e Melhores do Transporte 2011 (Biggest & Best of Transportation) The best Company of the vehicle rental sectorBRIC Breakout One of the 5 top picks Brazil for 2012Exame Magazine Among the 5 best Companies of the consumer sector, in the article “Where to invest in 2012”Institutional Investor’s ranking: 11
  • 12. Agenda1. The Company2. Drivers and opportunities3. Competitive advantages4. Financials5. 2012 Brazilian Macroeconomic scenario 12
  • 13. Drivers and growth opportunities 13
  • 14. Car rental drivers: investments Investments in Brazil Investments by sector 12.3% 20.8% 154 137R$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 classes2003 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 152003 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 OthersUnidas 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 346254 279 2011 Branches2005 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 penetrationBrazilian Market World (%) 58.3Corporate 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 6.5Germany 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 cars7,016,576 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 2,342,0591,620,657 1,830,4022005 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 8,862,951 476,827Used 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 48FIAT 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. 23Source: 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 sale13 In construction and 14 prospection2005 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 cashThe 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. Agenda1. The Company2. Drivers and opportunities3. Competitive advantages4. Financials5. 2012 Brazilian Macroeconomic scenario 26
  • 27. Competitive advantages: 38 years of experience in managing assets Profitability comes from rental divisions Renting cars SellingRaising Buying carsmoney 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 Moodys Baa3 Moody’sNational 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 volumesLocaliza’ 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 carsRaising Buying Selling Renting carsmoney 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 carsSales 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. Agenda1. The Company2. Drivers and opportunities3. Competitive advantages4. Financials5. 2012 Brazilian Macroeconomic scenario 32
  • 33. HighlightsInvestment grade by Moody’s and FitchIncluded at Bovespa Index starting 01/02/2012Elected the best CEO, CFO and IR of the transportationsector 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 % 13.1 428.0 346.1258.6 3% 22. 235.7 266.52005 2006 2007 2008 2009 2010 2011 4Q10 4Q11 Revenues from the Car Rental division grew 3.8x in six years. 35
  • 36. Fleet Rental Division # daily rentals (thousand) 19 .2% CAGR: 9,603 8,044 7,099 6,437 4,188 5,144 1 5 .4 % %3,351 19.4 2,517 2,1822005 2006 2007 2008 2009 2010 2011 4Q10 4Q11 Net revenues (R$ million) : 21 .4 % CAGR 455.0 361.1 303.2 % 219.8 268.4 21.0 0% 26. 184.0142.0 100.8 122.02005 2006 2007 2008 2009 2010 2011 4Q10 4Q11 Revenues from the Fleet Rental division grew 3.2x in six years. 36
  • 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 1,060.9 980.8 930.3 850.5 922.4690.0 720.0 656.7 588.8 446.5 382.3 380.2 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$308.4 million. 37
  • 38. Utilization rate and average fleet age Car rental division Elections’ effect 74.1% 9 0. % 0 66.2% 69.9% 66.3% 68.2% 68.9% 69.7% 68.9% 8 0. % 0 7 0. % 0 7.3 7.3 6 0. % 0 6.9 6.6 6.3 6.3 6.5 5 0. % 0 5.5 4 0. % 0 3 0. % 0 2 0. % 0 1 0. % 0 0 . % 0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11Average sold fleet 18.7 15.3 13.3 13.4 13.6 13.5 13.5 14.2age (month) Utilization rate Average operating fleet age In 4Q11, utilization rate presented a growth of 2.6 p.p when compared to 4Q10. 38
  • 39. Distribution # of rental locations in Brazil +34 415 449 346 381 279 312 2542005 2006 2007 2008 2009 2010 2011 # of used car sales stores +11 55 66 49 32 35 26132005 2006 2007 2008 2009 2010 2011 Company is still expanding its footprint. 39
  • 40. End of period fleet Quantity .9% CAGR: 17 96,317 88,060 9 .4 % 70,295 31,629 62,515 26,615 46,003 53,476 22,77835,865 23,403 17,790 14,63011,762 61,445 64,688 47,517 31,373 35,686 39,11224,1032005 2006 2007 2008 2009 2010 2011 Car rental Fleet rental Consolidated fleet grew 2.7x in six years. 40
  • 41. Consolidated net revenues R$ 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 1,126.2 980.8 922.4854.9 588.8 850.5 722.2 7.0% 772.7446.5 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% 392.52005 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 4Q11Divisions 2005 2006 2007 2008 2009 2010 2011 4Q10 4Q11Car 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 2011R$ 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 3,509.72,981.3 2,383.3 2,395.8 2005 2006 2007 2008 2009 2010 2011R$ 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 4Q11Reconciliation 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 - FCFFree cash flow - R$ million 2005 2006 2007 2008 2009 2010 2011EBITDA 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 1,468.1Capex 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 58.2 118.2 250.7 205.7 295.4 428.2 415.5Capex 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 32.7Free cash flow after growth and before interest (161.3) 53.2 (22.2) (283.1) 295.4 (0.8) 176.2Fleet 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 debt12/31/2010 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 2019Cash711.0 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 1,078.6 900.2 765.1535.8 440.4 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 2011Average capital investment - R$ million 606.3 986.2 1,137.5 1,642.3 1,702.3 1,984.6 2,445.3NOPAT 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 0.59xROIC 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. Agenda1. The Company2. Drivers and opportunities3. Competitive advantages4. Financials5. 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 forecast11.00% 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 3247-7024DisclaimerThe 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 tobe 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 representationor 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, asthe 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 resultsof 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 inthe 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. 53

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