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  1. 1. 1Q13 Results Webcast May 10, 2013
  2. 2. Reported net profit reached R$9.4 million in the quarter, an increase of 18.8% over 4Q12. Excluding the effects of the IPI (additional depreciation of R$ 5.0 million in 1Q13), net income would be R$ 12.7 million, an increase of 60.9% over 1Q12, and representing a net margin of 15.5% on rental revenues. Consolidated net revenues increased 48.5% over 1Q12, driven by an increase of 198.0% in the sales of used vehicles and 9.3% in fleet rental revenues. Used car sales in 1Q13 were a record, totaling 2,857 vehicles, representing an increase of 230.3% and 37.1% compared to 1Q12 and 4Q12, respectively. The global value of new fleet rental contracts signed during 1Q13 was also a record, at R$93 million and up 102% compared with 1Q12 - which points to a top line growth in line with the Company’s budget plans. In April, sales held up at 1Q13 historic levels. EBITDA hit a record high of R$ 46.8 million in 1Q13, which already represented a margin on net rental revenue of 57.0%, within the operational margin target set by the Company, and significantly above the 53.4% reported in 4Q12. On April 30, Fitch Ratings raised the Company’s credit rating to “A(bra)” from “A-(bra)”, in response to the successful process of strengthening its financial profile, which resulted in: (i) debt lengthening (duration from 1.7 to 4.4 years), (ii) release of collateral (percentage of the fleet in guarantee fell from 68% to 36%), (iii) reduction of spread (CDI +5.5% to current 2.8%), and (iv) deleveraging (net debt/EBITDA from 3.4x to 2.7x). Quarter Highlights 2
  3. 3. 1Q12 1Q13 75.1 82.1 19.8 58.8 2009 2010 2011 2012 147.6 196.8 272.5 303.8 64.5 112.4 118.2 140.3 Consolidated Net Revenues – R$ Million Net Fleet Rental Revenue Used Cars Sales Revenue Consolidated Revenues 3 1S11 1S12 2T11 2T121S12 2T11 2T12
  4. 4. 1Q12 1Q13 45.9 46.8 EBITDA 4 2009 2010 2011 2012 74.5 108.8 155.6 168.5 EBITDA – R$ million 1 Excluding the extraordinary effects of IPI tax reduction (R$15.0 million in impairment) 1
  5. 5. 2009 2010 2011 2012 1Q12 1Q13 -8.5 11.6 22.6 36.3 7.9 9.4 Consolidated Net Income 5 Net Income – R$ million 1 Excluding the extraordinary effects of IPI tax reduction. 1
  6. 6. 1Q12 1Q13 28,631 27,813 Fleet - End of Period 6 Fleet End of Period - Units 2009 2010 2011 2012 15.335 21,913 27,262 29,252
  7. 7. 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 778 860 889 898 773 860 1,035 968 788 2011 2012 3,426 3,635 Source: Fenabrave 7 New Car Sector Overview Sales of New Passenger Cars and Light Commercial Vehicles in Brazil – in thousand
  8. 8. 8 Used Car Sector Overview Sales of Used Vehicles in Brazil – in thousand Source: Fenabrave 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2,044 2,121 2,319 2,379 2,083 2,168 2,413 2,347 2,099 2011 2012 8,863 9,011
  9. 9. 1.89% 1.72% 2.27% 2.02% 1.68% 1.64% Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 4.3% 2.5% 7.2% 7.1% 6.3% Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 Source: BCB 9 Vehicle Financing Vehicle Financing Default Rate¹ ¹ Individuals Financial Spread of vehicle financing
  10. 10. 65 70 75 80 85 90 95 100 105 Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Jul-08 Nov-08 Mar-09 Jul-09 Nov-09 Mar-10 Jul-10 Nov-10 Mar-11 Jul-11 Nov-11 Mar-12 Jul-12 Nov-12 Mar-13 Price of new cars Price of used cars 4.5% 5.9% 4.4% 5.9% 6.5% 5.8% 6.6% 1.7% -2.3% -3.6% -1.0% -2.9% -5.7% 2.4% 0.1% -4.3% -11.9% -2.0% -3.7% -10.7% -0.2% -14.0% -10.0% -6.0% -2.0% 2.0% 6.0% 2007 2008 2009 2010 2011 2012 1Q13 General Inflation (IPCA) Price of New Cars Price of Used Cars 10 Used Car Prices vs. New Car Prices in Brazil Spread between the price of Used and New cars in Brazil¹ Base 100 in July 2006. Inflation vs Price of New and Used Cars¹ Source: 1 IBGE 2 IPCA IT13 LTM. 2
  11. 11. 1Q12 2Q12 3Q12 4Q12 1Q13 3,596 3,835 3,446 3,208 4,505 Inventories Cars for Sales 12.6% 13.5% 12.0% 11.0% 16.2% % of total fleet EoP 1Q12 4Q12 1Q13 23,590 24,204 22,668 1,445 1,840 640 3,596 3,208 4,505 Operating Deployment Demobilization 27.813 29.25228.631 Operating Performance 11 Fleet Breakdown, EoP Cars Inventories for Sale (Demobilization) 3T11 4T11 1T12 2T12 3T12 2.911 3.596 3.835 3.446 Frota em Desmobilização -389
  12. 12. 1Q12 1Q13 75.1 82.1 Fleet Rental Revenues 12 Net Fleet Rental Revenues – R$ Million 2009 2010 2011 2012 147.6 196.8 272.5 303.8
  13. 13. 1Q12 2Q12 3Q12 4Q12 1Q13 1,078 1,491 2,631 1,577 1,557 Number of cars 46 51 71 67 93 Global Value - R$ Million 50 60 40 20 100 Record 68% 66% 64% 63% 61% 1Q12 2Q12 3Q12 4Q12 1Q13 New Contracts and Popular Vehicles 13 New Contracts¹ 1 Excludes contract renewals. 50 60 40 20 100 % of Popular Vehicles in the Fleet
  14. 14. 201 230 247 269 289 309 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 63.3% 51.6% 44.5% 39.5% 2010 2011 2012 1Q13 14 Number of Clients and 10 Biggest Clients Number of Clients Decreasing Customer Concentration Participation of the 10 largest customers in rental revenue.
  15. 15. 1Q12 2Q12 3Q12 4Q12 1Q13 865 1,574 2,543 2,084 2,857 22.8 20.9 19.0 18.9 20.6 1Q12 2Q12 3Q12 4Q12 1Q13 15 Used car sales Number of Cars Sold Average Selling Price – (R$ thousand)
  16. 16. 2009 2010 2011 2012 2,828 5,473 5,489 7,066 16 Used car sales Two inaugurations in december/12 and five new retail stores in 2013 Number of Cars Sold Wholesale Sales Point – Beginning of the year (8 stores) Retail Sales Point – Beginning of the year (3 stores) New Sales Point in 2013 (5 retail stores) Belo Horizonte Cuiabá Rio de Janeiro Curitiba Campo Grande Rib. Preto Campinas São Paulo
  17. 17. 1Q12 2Q12 3Q12 4Q12 1Q13 6.6% 7.5% 6.6% 6.4% 7.9% 7.6% 4.1% 2.7% 2.6% 2Q12 3Q12 4Q12 1Q13 Apr-Dec 2014 + 15.0 13.9 7.6 5.1 5.0 5.7 3.5 IPI Effects and Depreciation 17 ¹ Excluding the extraordinary effects of IPI tax reduction IPI tax reduction effects – R$ Million Depreciation / Average Fixed Assets Depreciation Impairment Vehicles and acessories Depreciation IPI Additional Depreciation 28.9 1 11 2013
  18. 18. 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 37.1 36.9 41.1 40.4 45.9 39.6 41.0 42.0 46.8 58.6% 54.3% 59.5% 56.1% 61.1% 53.3% 54.2% 53.4% 57.0% EBITDA and EBITDA Margin 18 1 Excluding the extraordinary effects of IPI tax reduction (R$15.0 million in impairment) 1 1 EBITDA – R$ million Record
  19. 19. 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 27.3 26.5 30.8 29.1 33.3 25.4 28.1 29.2 31.2 43.1% 39.0% 44.5% 40.4% 44.3% 34.1% 37.2% 37.1% 38.0% EBIT and EBIT Margin 19 1 Excluding the extraordinary effects of IPI tax reduction (Impairment: R$15.0 MM; Additional depreciation: R$13.9 MM, R$7.6 MM, R$5.1 MM and R$5.0 MM on 2Q12, 3Q12, 4Q12 and 1Q13, respectively). 1 1 1 1 1 1 1 1 EBIT – R$ million
  20. 20. 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 5.4 6.2 6.1 4.9 7.9 -22.4 7.5 10.8 9.4 16.3% 12.2% 13.8% 15.9% 15.9% 1Q12 2Q12 3Q12 4Q12 1Q13 20 Notes: 1 Excluding the extraordinary events of the IPI tax reduction and the prepayment of debt fines. Net Income and Returns ROE LTM = (Net Income / Average Equity last 5 quarters) x 100 Net Income (R$ mm) ROE¹ (%) 16,3% 12,2% 13,8% 15,9% 15,9% 17,7% 18,9% 16,7% 1T12 2T12 3T12 4T12 1T13 ROE LTM
  21. 21. 2009 2010 2011 2012 1Q12 1Q13 115.6 291.9 315.9 281.2 68.3 50.9 64.5 112.4 118.2 140.3 19.8 58.8 (7.9) 51.1 179.5 197.8 140.9 48.6 2009 2010 2011 2012 1Q12 1Q13 4,467 11,040 11,052 9,522 2,318 1,699 2,828 5,473 5,489 7,066 865 2,857 1,639 5,567 5,563 2,456 1,453 (1,158) Purchases Used Cars Sales Revenues Purchased Cars Sold Cars Investment 21 Fleet Increase Net Fleet Capex – R$ Million
  22. 22. 2011 2012 2013 BBB+ A- A 22 Fitch RatingsStandard & Poor’s Ratings Capital Structure Ratings increase 1 18 Jun 12 19 Sep 11 08 Feb 13 2011 2012 2013 02 May 12 08 Jun 11 30 Apr 13 BBB+ A- A
  23. 23. 35% 62% 68% 88% 89% 2009 2010 2011 2012 1Q13 87% 72% 68% 37% 36% 2009 2010 2011 2012 1Q13 5.5% 3.8% 3.3% 3.1% 2.8% 1Q12 2Q12 3Q12 4Q12 1Q13 Debt Spread Capital Structure 23 Vehicles in guarantee of debts % Long Term Debt % of fleet vehicles in guaranteed debt Lower spreads and vehicles in guarantee
  24. 24. Cash 2013 2014 2015 2016 2017 2018 2019 201.4 59.7 77.1 81.5 240.6 80.1 80.0 40.0 Cash 2012 2013 2014 Until 2016 187.2 159.6 250.2 173.0 165.0 Lengthening of debt amortization until 2019 24 Debt Profile on 31/03/2013Debt Profile on 31/03/2012 Capital Structure R$ MillionR$ Million
  25. 25. 2009 2010 2011 2012 1Q13 243.9 393.4 523.9 444.2 457.5 3.27x 3.61x 3.37x 2,64x 2,70x 1Q12 2Q12 3Q12 4Q12 1Q13 30.3% 27.6% 20.2% 18.6% 16.2% 25 Net Financial Expenses / Net Rental Revenue Capital Structure 11 1 Excluding the prepayment of debt fines.1 Excluding the extraordinary events of the IPI tax reduction. 1 1 Net Debt (R$ mm) and Net Debt / EBITDA Deleveraging and lower financing costs
  26. 26. Thank you! www.locamerica.com.br/ri Contact: ri@locamerica.com.br +55 31 3316.1981 Legal Notice - This release contains forward-looking statements relating to the prospects of the business. estimates for operating and financial results. and those related to growth prospects of Locamerica and are merely projections and. as such. are based exclusively on the expectations of the Company’s management concerning the future of the business. Such forward-looking statements depend substantially on changes in market conditions. the performance of the Brazilian economy. the sector and the international markets. and are therefore subject to change without prior notice.

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