4. Localiza X Competitors
(# of agencies in Brazil)
254
73
82 79
70 62
181
27 30 3
30
59
55 49 40
Source: Competitors website in March, 2006
CITY AIRPORT
Localiza is larger than the second, third and fourth (summed) main
competitors in number of total agencies
4
5. Market Strategy: Consolidation
2004 Market Share 2005 Market Share
Localiza Localiza
16% 18%
Localiza increased its market share to 18% based on rental
revenues in 2005
Source:
ABLA announced 8% of market growth estimate in 2005
Localiza company grew by 29.4% in 2005
5
6. Localiza Rent a Car S.A.
4Q05 and 2005 Results Presentation
(R$ million - USGAAP)
6
7. 2005 Highlights
38.2% increase in net revenue, reaching R$ 877 million
Net income of R$ 106.5 million in 2005 (17.6% higher than 2004)
EBITDA of R$ 285.8 million (36.1% higher than 2004)
41.4% increase in car rental business volume
19.4% increase in fleet rental business volume
2 p.p. market share increase
Troféu Transparência 2005 (Transparency Award 2005) (ANEFAC, Non Public
Company category)
Best performance among the Latin America IPOs in 2005 (Economática)
One of the 100 most traded shares in BOVESPA in 2005
7
10. Result Breakdown per Business
(R$ million, USGAAP)
Performance per 2005
Segment
Car Rental Fleet Rental
Consolidated TOTAL
Franchising
Performance
Used Used
Rental Total Rental Total
Cars Cars
Net Income
Revenue
876.9
271.3 369.9 641.2 149.2 78.3 227.5 8.2
ROE Net (41.1)
106.5
89.7 (11.3) 74.4 69.1 30.0 2.1
Income
Investment
Income
In Fleet +12.1%
+33.1% -3.0% +11.6% +46.3% -52.5% +13.2% +25.6%
Margin
EBITDA
285.7
138.9 39.8 178.7 103.3 (0.2) 103.1 3.9
Indebtedness
EBITDA
RENT3 +32.6%
+51.2% +10.8% +27.9% +69.2% -0.2% +45.3% +47.2%
Margin
Performance
10
11. 2005 EBITDA per Business
(R$ million, USGAAP)
Margin
Performance per
Segment
27.9% 45.3% 47.2% 32.6%
Consolidated
286
Performance
4
103.1 1%
Net Income
36%
ROE
178.8
Investment
In Fleet
63%
Indebtedness
RENT3
Performance
Car Rental Fleet Rental Franchising Total
11
12. Consolidated Performance
(R$ million, USGAAP)
Dailies - thousand EBITDA
Performance per
. 8%
+16 6,762
Segment
+40.1% .4%
C: 7.2% +35
TCA C: +3
TCA 286
5,219 1,989 80
1,420
Consolidated 210
59
4,959
Performance 152
Net Income
2003 2004 2005 4Q04 4Q05
2003 2004 2005 4Q04 4Q05
ROE
Investment
In Fleet Net Income
Net Revenues
+17.3% *
.7%
8.4% 5%
24. +96
Indebtedness
: +2 :+
877
C 27
AC
TCA 634
106 107
TC
224
191 91
RENT3 14
532 69*
Performance
2005 4Q04
2003 2004 4Q05
2003 2004 2005 4Q04 4Q05
* Pro forma result disregarding mark-to-market (MTM) of derivates contracts
12
13. Net Income Evolution
(R$ million, USGAAP)
Net Revenue
Performance per
+876.9
Segment
Direct Costs
Consolidated
Performance +40.4%
Depreciation
Net Income Operating
+38.2% Expenses
+84.1%
-511.2
Net Financial
+20.3%
-43.0 Expenses
ROE
-87.7 +96.2% Taxes
Non oerating
-84.4 +8.1% Result
Investment
-0.2%
-44.0
In Fleet 0.1
90.6 106.5
Indebtedness +17.6%
2004 Net Income 2005 Net Income
RENT3
Performance
Margin Margin
14.3% 12.1%
13
14. Return on Equity (ROE)
(USGAAP)
Performance per
Segment
38.9%
38.6% 36.7%
Consolidated
Performance
Net Income
ROE
2003 2004 2005
Investment
In Fleet
1. ROE was calculated dividing the average equity of the year, disregarding the
Indebtedness
year’s net income
RENT3
2. 2003 net income disregarded MTM of derivatives contracts
Performance
14
16. Indebtedness
(R$ million, USGAAP)
Net Debt (R$million) USGAAP
8 .9 %
: + 14
AC 539
Performance per TC
Segment
281
Consolidated
Performance 87
Net Income
2003 2004 2005
ROE Rating S&P - Positive BrA 12/31/2003 12/31/2004 12/31/2005
Net Debt / EBITDA
Investment 0.57 1.34 1.89
In Fleet
Net Debt / fleet 22% 46% 60%
Indebtedness
Net Debt / equity 0.36 0.96 1.37
RENT3
Performance
9.99* 4.88 3.39
EBITDA / net financial expenses
* Without swap effects
16
17. RENT 3 Performance
RENT3 X IBOVESPA
30 100
Performance per
Segment 28
26 80
Volume (R$ thousand)
Consolidated 24
Performance
22 60
Price
20
Net Income 18 40
16
14 20
ROE
12
10 0
Investment
un
ov
ay
ug
ug
ep
ep
ul
g
n
ec
n
ec
l
ct
ct
Ju
Ju
Ja
Au
-J
-O
-O
-N
-M
-D
D
-J
-A
-A
-S
-S
In Fleet
5-
19
7-
3-
2-
5-
21
13
27
16
16
30
14
28
19
23
Volume RENT3 RENT3 IBOVESPA
Indebtedness
RENT3 Free-Float of 37.74% and foreign participation of 85%
Performance
Average volume traded of R$ 4.14 million
RENT3 Performance since IPO: +152.8% (1)
RENT 3 Performance x IBOVESPA: +116.33% (1)
(1) From May 23 (IPO date) to 12/31/2005
17
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.
18
