2. Integrated business platform
123 agencies 13,116 cars
20,096 cars
Integrated
business
platform
Businesses
strategies
Synergies:
Objectives
cost reduction,
Competitive cross selling,
advantages
Growth
bargaining power
opportunities
194 agencies in 9 13 points of sale
countries 78.4% sold to final
7,076 cars consumer
Data-base: 03/31/2006
1
3. Businesses strategies
Increase market leadership maintaining high return on
investment
Integrated
Core Businesses
business
platform
Businesses Add value to the brand by expanding the network in
strategies
Brazil and Latin America
Objectives
Competitive
advantages Create value through fleet management market
opportunities, taking advantage of the synergies
Growth
opportunities
generated by the integrated business platform
Support
Add value to the businesses of the platform as a
competitive advantage, reducing depreciation costs
2
4. Objectives
Short-term:
Integrated Maintain profitability
business
platform (Net margin, ROE and EBITDA margin)
Businesses
strategies
Objectives
Long-term:
Competitive
advantages
Growth
Increase business volume through organic growth and horizontal
opportunities expansion, taking advantage of growth and consolidation
opportunities to expand market share and gains of scale
3
6. Growth opportunities
GDP
elasticity
Air
Consolidation
Integrated
business
traffic
platform
Businesses
strategies
Objectives
Competitive
advantages
Growth
opportunities
Fleet rental Credit
market cards
Replacement
5
7. Localiza Rent a Car S.A.
1Q06 Results presentation
(R$ million - USGAAP)
6
8. 1Q06 Highlights
42,6% increase in car rental business volume
31,8% increase in fleet rental business volume
23,2% increase in car rental EBITDA (excluding used car sales)
37,3% increase in fleet rental EBITDA (excluding used car sales)
2.2 p.p utilization rate increase in car rental business
68,6% increase in the trading volume of RENT3 (R$ 7,1 million in the 1Q06)
7
13. Net income evolution
(R$ millon, USGAAP)
EBITDA variation = + 6.4 million
Rentals = + 17.1 milion Other itens variation = - 2.8 million
Used car sales = - 10.7 million
Revenues Costs
+37.9 -23.4
+3.9
-13.6
+34.0 -9.8 SG&A
-8.1
-1.0 Interests
Depreciations
Stock option Taxes
-7.1 +1.4 -3.8
-0.9 +0.5
26.0 29.6
+13.9%
Net income Net income
1Q05 1Q06
12
14. Cash flow
(R$ millon, USGAAP)
Synthetic cash flow 1Q05 1Q06 Variation
Net income adjusted to reconcile net income to net cash 50.3 56.2 5.9
Increase in working capital (client, accounts payable, etc) (16.6) (9.4) 7.2
Car purchase (64.8) (51.1) 13.7
Cost of used cars sold 95.1 106.9 11.8
Net cash generated by operational activities 64.0 102.6 38.6
Net cash generated by investment and financing activities 385.3 (104.1) (489.4)
Increase (reduction) of net cash 449.3 (1.5) (450.7)
Availabilities at the beginning of the period 129.3 70.7 58.6
Availabilities at the end of the period 578.6 69.2 509.4
13
15. Indebtedness
(R$ millon, USGAAP)
Net debt (R$ millon) USGAAP
539
479.6
281 250.3
322,8*
87 322.8*
2003 2004 2005 1Q05 1Q06
1Q06*
Rating S&P - Positive BrA 2003 2004 2005 1T05 1T06 pro forma
Net debt / fleet 22% 46% 60% 44% 58% 39%
Net debt / equity 0.36 0.96 1.37 0.8 1.2 0,.6
* Pro forma considering R$ 156.8 million of the primary offer
14
16. RENT3 performance
R ENT3 X IBOV ESPA
31/12/05 31/03/06
50 120
28,63 + 28,5% 36,8
45
100
40
80
35
30 60
25
40
20
20
15
10 0
Volume RENT3 RENT3 IBOVESPA
Average daily volume traded in 1Q06 of R$ 7,1 MM
1Q06 RENT3 performance: +28.5%
1Q06 RENT 3 x IBOVESPA performance: +15.1%
15
17. Perspectives
Utilization rate above 65% in car rental business
25% increase in car rental business volume
15% increase in fleet rental business volume
EBITDA margin in car rental business of 45% (excluding used car sales)
EBITDA margin in fleet rental business of 70% (excluding used car sales)
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18. 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.
17