2. 1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 2Q15
Agenda
2
3. Company: milestones
Phase I – Rise to #1
1973 – Founded in Belo
Horizonte/MG
Late 70’s - Acquisitions in the
Northeast of Brazil
1981 – Brazilian car rental leader in
# of branches
Phase II – Expansion
1984 – Expansion strategy by
adjacencies: Franchising
1991 – Expansion strategy by
adjacencies: Seminovos
1997 – Expansion strategy by
adjacencies: Fleet Rental
1997 – PE firm DL&J enters at a
market cap of US$ 150 mm
Phase III – Reaching Scale
2005 – IPO: market cap of US$ 295
mm
2011 – Rated as investment grade by
Moody’s, Fitch and S&P in 2012
2012 – ADR level I
12/31/2014 – Market cap of about
US$3.0 bi with ADTV of US$14.0
million
1973 1982 1983 2004 2005 2014
3
4. Company: integrated business platform
Synergies:
bargaining power
cost reduction
cross selling
12,934 cars
175 locations in Brazil
67 locations in South America
38 employees
58,2% sold to final consumer
75 stores
993 employees
71,525 cars
4.6 million clients
310 locations
4,522 employees
33,217 cars
793 clients
399 employees
This integrated business platform gives Localiza flexibility and superior performance.
Based on the 1H15 4
Car Rental Fleet Rental
SeminovosFranchising
5. 5
2014 Consolidated breakdown
R$ million
Company’s profitability comes from
Car Rental and Fleet Rental Divisions.
12%
35%
52%
35%
65%
Net Revenues
R$3,892
EBITDA
R$970
52%
15%
33%
EBIT*
R$726
R$2,018
R$1,302
R$572
R$120
R$507
R$343
R$253
R$473
*Seminovos results recorded in the Car Rental and Fleet Rental Divisions
6. 6
High fixed cost
Standard fleet
1 year cycle
High entry barriers
Gains of scale
Intensive capital
Consolidated in airport
market
Fragmented off airport
market
Support area
Reduces depreciation
Know How of used cars
market
Low dependence on
intermediates
Supplementary
business
Important for
distribution
High profitability
Low contribution in
results
Company: Business platform divisions
Car Rental
Rents to individuals and
companies at airports
and off airport locations.
Franchising
Contributes to expand
the Localiza’s network.
Fleet Rental
Outsources fleet for 2-3
years term contracts.
Used Car Sales
Sells the used cars mainly
to final consumers after
the rental and estimates
the residual values.
Low fixed cost
Customized fleet
3 years cycle
Low entry barriers
Intensive capital
7. 7
Net car sale
revenue
R$26.21 year cycle
Car Rental Division - Financial Cycle
Per car
R$27.8
Average car price
1 2 3 4 5 6 7 8 9 10 11 12Expenses, interest and tax
Revenue
Spread
9.5p.p.
Total
1 year
R$ % R$ % R$
Net revenues 20.9 100.0% 29.0 100.0% 49.8
Costs - fixed and variable (9.4) -44.9% (9.4)
SG&A (3.4) -16.3% (2.8) -9.6% (6.2)
Net revenues of car sold 26.2 90.4% 26.2
Book value of car sold (24.8) -85.6% (24.8)
EBITDA 8.1 38.7% 1.4 4.7% 9.5
Cars Depreciation (1.3) -4.4% (1.3)
Others depreciation (0.4) -1.7% (0.2) -0.6% (0.5)
Financial expenses (1.7) -6.0% (1.7)
Taxes (2.3) -11.1% 0.5 1.9% (1.8)
Net Income (Loss) 5.4 25.9% (1.3) -4.4% 4.1
NOPAT 5.3
ROIC (it considers the effect of the average book value of the car in its useful life) 17.5%
Cost of debt after taxes 8.0%
Car Rental Seminovos
Per car soldPer operating car
8. 8
Net car sale
revenue
R$24.4
3 year cycle
Fleet Rental Division - Financial Cycle
Per car
Spread
9.5p.p.
1 2 3 4 5 6 31 32 33 34 35 36Expenses, interest and tax
Revenue
R$33.3
Average car price
Total
3 years
R$ % Seminovos % R$
Net revenues 55.7 100.0% 26.9 100.0% 82.6
Costs - fixed and variable (18.6) -33.4% (18.6)
SG&A (3.7) -6.7% (2.5) -9.3% (6.2)
Net revenues of car sold 24.4 90.7% 24.4
Book value of car sold (21.2) -78.9% (21.2)
EBITDA 33.4 60.0% 3.2 11.8% 36.6
Cars Depreciation (12.6) -46.9% (12.6)
Others depreciation (0.1) -0.2% (0.1) -0.2% (0.2)
Financial expenses (4.4) -16.3% (4.4)
Taxes (10.0) -17.9% 4.2 15.5% (5.8)
Net Income (Loss) 23.3 41.8% (9.7) -36.1% 13.6
Net Income (Loss) - per year 7.8 41.8% (3.2) -36.1% 4.5
NOPAT 5.6
ROIC (it considers the effect of the average book value of the car in its useful life) 17.5%
Cost of debt after taxes 8.0%
Per operating car
Fleet Rental Seminovos
Per car sold
9. Raising
money Buying
cars
Renting Cars Selling
Cars
Cash to renew the fleet or pay debt
$
Profitability comes from rental divisions
Competitive advantages
$
9
42 years of experience in managing assets and generating value.
10. Competitive advantages: raising money
Global Scale
National Scale
Localiza raises money with better conditions when compared to competitors.
As of July, 2015.
BBB Fitch
Baa3 Moody’s
BBB- S&P
Baa1 Moody´s
BBB+ S&P
B1 Moody´s
B+ S&P
Ba3 Moody´s
BB- S&P
BB- Fitch
brAAA S&P
Aa1.br Moody’s
AAA(bra) Fitch
brAA- S&P
A+ (bra) Fitch
brA S&P
A- (bra) Fitch
AA- (bra) Fitch A(bra) Fitch
Raising
money
Buying
cars
Renting Cars
Selling
Cars
10
Investment grade: lower spreads and longer tenors
Source: Bloomberg and companies website
11. 11
Competitive advantages: buying cars
Localiza buys cars with better conditions due to the volume of purchases.
Number of cars purchased - 2014
* Includes Franchising
86,426
22,920 17,246 14,177
Localiza Unidas Movida Locamerica
*
Source: each company website and ANFAVEA
Localiza’s share in the internal sales of the
major OEMs - 2014
3.6%
Raising
money
Buying
cars
Renting Cars
Selling
Cars
12. 108
157
82
82
12
The Company is present in 243 cities where the other largest networks do not operate.
Competitive advantages: renting cars
Know HowBrand Brazilian distribution 2014
#ofbranches#ofcitiesSource: Each company website
As of December, 2014
476 402
Raising
money
Buying
cars
Renting Cars
Selling
Cars
Localiza Unidas Hertz Movida Avis
348
105 78 60 42
Localiza Competitors
13. 13
Sales to final consumer
Competitive advantages: selling cars
Selling directly to final consumer reduces depreciation.
Cars available for sale are used during peaks of demand.
Raising
money
Buying
cars
Renting Cars
Selling
Cars
Buffer: additional fleet
14. 7.3%
8.6%
6.3% 6.0%
8.0% 9.0%
16.9% 17.1% 16.1% 16.5% 17.5%
16.2%
2010 2011 2012 2013 2014 1H15*
14
ROIC versus cost of debt after taxes
9.6p.p. 8.5p.p. 9.5p.p.
9.8p.p.
ROIC and spread remained at a healthy level.
ROIC Cost of debt after taxes
10.5p.p.
7.2p.p.
*Annualized
15. Localiza Unidas Locamerica Ouro Verde JSL
Localiza Unidas Locamerica Ouro Verde JSL
Localiza vs. players
Profitability
Source: Companies’ Financial Statements.
* Includes 19,208 cars from Movida - RAC
15
ROIC 2014
ROE 2014
Frota 125,224 40,296 30,291 25,326 49,429*
13.7%
WACC
Reference
ROIC = NOPAT / (Average net debt + average equity)
ROE = Net income / Equity at the beginning of the year
Consolidated
Consolidated
17.5%
8.1%
9.1% 8.5% 7.6%
30.6%
8.2%7.1%
10.9%
7.1%
19. 19
Drivers
Source: BCB and Localiza rates
151
180 200
240
260 300
350
380
415
465
510
545
622
678
724
51%
38%
37% 35%
31%
27%
22% 20% 18% 16% 15% 15% 13% 13% 12%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Monthly minimum salary (R$) Daily rental price over minimum salary (%)
Car rental affordability
Source: IPEADATA and Localiza’s loyalty program.
4 million
84 million
Adult population
(age > 20 years)
Class A+B+C
15 million
Adult population
(age > 20 years)
Class A+B
Increasing affordability and low penetration in leisure trips brings growth opportunities.
20. 20
Drivers
# domestic air traffic passengers
In million
Investments per industry
(In billions of Reais)
Source: Exame Magazine, December 2014.
70
82
89 90 96
122
2010 2011 2012 2013 2014 2017E
Source: ANAC
2017 estimates: BOEING
The strong pipeline of investments tend to benefit
the corporate segment.
Air traffic growth supporting demand at the airports.
21. 21Source: RAIS and each company’s website
As of December 31, 2014
Off-airport market is still fragmented.
Airport locations Off-airport locations
Car Rental Locations in Brazil
Others
5,111
22. 22
Market Share – Car Rental 2014
Fleet
332,485 cars
Source: ABLA and Companies’ Financial Statements and estimates.
23.3%
2.4%
6.9%
5.8%
2.1%
61.6%
Localiza’s market share is about 2x higher than the 2nd and 3rd players together.
Movida
Unidas
Franchising
25.7%
Others
Avis
23. 23
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 2Q15
Agenda
24. 24
Number of clients
Fleet Rental overview
35.0%
Compact cars
2014 Fleet composition
34,312 cars
65.0%
Others
729
760 798 793
2012 2013 2014 1H15
End of period fleet
32,104 32,809 34,312 33,217
2012 2013 2014 1H15
25. 25
Source: ABLA, Datamonitor and Localiza
Low penetration of rented fleet in Brazil.
Rented fleet penetration
Corporate fleet:
4,000,000*
Rented fleet:
440,737
34,312
Brazilian Market World
11.0% 8.9%
13.3%
16.5%
24.5%
37.4%
46.9%
58.3%
Drivers
*Localiza estimates
27. 27
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 2Q15
Agenda
28. 28
Efficiency gain on car sales
# of points of sale
Car sales – operating data
55
66
73 74 75 75
2010 2011 2012 2013 2014 1H15
47,285 50,772
56,664
62,641
70,621
33,520
2010 2011 2012 2013 2014 1H15
# Number of cars sold (quantity)
29. 29
Source: O Estado de São Paulo newspaper, as of 08/16/13 (based on researches of Sindipeças) and Globo website, as of 03/10/2014.
Used car sales drivers:
affordability and penetration
# of inhabitants per car 2012 – (Brazil 2014)
4.2
4.0
4.0
3.6
2.1
2.0
1.9
1.8
1.2
Argentina
Brazil
Russia
South Korea
Japan
France
Germany
United Kingdon
USA
Affordability to buy cars – Public Price of
the most basic Gol
300 350 380
415 465 510
545
622 678 724
84
71 69
61
55
51
49
43 43 43
-
10
20
30
40
50
60
70
80
90
-
100
200
300
400
500
600
700
800
900
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Minimum wage (R$)
Minimum wages to buy a new car
30. 8.4 8.9 9.0 9.4
10.1
3.3 3.5 3.6 3.6 3.3
30
2.5x 2.5x
2010 2011 2012 2013 2014
2.6x
Brazilian car market:
new x used car market and affordability
New cars
Used cars
Source: FENABRAVE (light and commercial cars)
2.6x
Total market of 13.4 million cars.
3.1x
31. 31
2014 Up to 2 years
442,257
2014 Brand new
3,328,716
2014 Used cars
10,051,296
0.7% 1.8% 16.0%
Car sales – operating data
Source: Anfavea and Fenabrave
Examples
• Retailers
• “Loja do carro”
• Dealers
• Fiat, VW, Ford,
GM most
successful
• Auto Brasil
• Rental operators
• Locamerica, Hertz
• “Auto malls” and
“Cidade do
automóvel”
Points of sale • 48,000 (Fenauto) • 4,364 (Anfavea)
• +57 (Unidas, Movida,
Locamerica and
others).
• 71 (Fenauto)
Main players
32. 32
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 2Q15
Agenda
33. 802.2
980.7
1,093.7 1,163.5 1,284.4
628.1 606.4
316.7 296.4
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
33
Net Revenues (R$ million)
# Daily Rentals (thousands)
Car Rental Division
The marketing initiatives helped to offset the reduction in rental demand as a result
of lower volume of business trips and aggressive competitive landscape.
10,734
12,794 13,749 14,242 15,416
7,638 7,584
3,865 3,780
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
34. 234 247 272 286 304 310
181 202 202 193 172 175
61 47 50 63 64 67
2010 2011 2012 2013 2014 1H15
34
Car Rental network evolution
6 new corporate locations were added to the network in 1H15.
# of car rental locations (Brazil and abroad)
Localiza´s branches - Brazil Franchisees´ branches - Brazil Franchisses´ branches - abroad
476 496 524 542 540
+6
+3
552
+3
35. 35
Utilization rate evolution – Car Rental Division
2Q15 utilization rate was 69.0%, 2.7p.p. above the rate of 1Q15.
69.1%
68.9%
70.8%
66.8%
69.9%
66.3%
69.0%
2010 2011 2012 2013 2014 1Q15 2Q15
36. 361.1
455.0
535.7 575.9 571.9
283.1 298.8
140.0 149.9
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
8,044
9,603
10,601 10,844 10,363
5,153 5,484
2,530 2,739
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
36
Net Revenues (R$ million)
# Daily Rentals (thousands)
Fleet Rental Division
The growth reflects the Company´s commercial intelligence in exploring
market opportunities as well as the synergy of our business platform.
37. 1,910.4
1,776.5
1,618.8
2,026.2
2,483.2
1,021.5 901.3
704.4
552.3
1,321.9
1,468.1 1,520.0
1,747.3
2,018.2
929.3
1,043.2
443.6 499.2
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
Purchases (includes accessories) Used car sales net revenues
Cars purchased Cars sold
37
Net investment
Fleet Expansion* (quantity)
The 12.3% Seminovos net revenue growth in 1H15 was mainly
due to the increase in the average price of cars sold.
Net Investment in Fleet (R$ million)
65,934
59,950 58,655
69,744
79,804
35,064
26,851 24,184
16,211
47,285
50,772
56,644
62,641
70,621
33,338 33,520
15,889 16,071
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
9,178 2,011
7,10318,649
309.4
98.8
588.6 278.9
* It does not include theft / crashed cars.
9,183
465.0
1,726 (6,669)
8,295
140
92.2 (141.9)
260.8
53.1
+12.3%
38. 38
End of period fleet
Quantity
The 2.4% reduction in the fleet of Car Rental Division reflects the adjustments
in fleet size according to demand.
61,445 64,688 65,086 70,717 77,573 73,281 71,525
26,615
31,629 32,104
32,809
34,312
31,814 33,217
10,652
12,958 14,545
14,233
13,339
12,991 12,934
2010 2011 2012 2013 2014 1H14 1H15
98,712
109,275 111,735
117,759
125,224
Car Rental Fleet Rental Franchising
118,086 117,676
39. 1,175.3 1,450.0 1,646.7 1,758.9 1,874.0
920.3 913.3 461.0 450.3
1,321.9
1,468.1 1,520.0 1,747.3
2,018.2
929.3 1,043.2
443.6 499.2
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
39
Consolidated net revenues
R$ million
Consolidated net revenues grew 5.8% in 1H15 when compared with 1H14.
Rental Used car sales
2,918.1
3,506.2
3,892.2
2,497.2
3,166.7
1,849.6 1,956.5
904.6 949.5
40. 40
Consolidated EBITDA
R$ million
Part of the decrease in Car Rental EBITDA margin of the Car Rental was compensated
by the reduction in depreciation expenses.
649.5
821.3 875.6 916.5 969.8
490.6 467.8
241.6 223.0
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
(*)From 2012 on, accessories and freight of new cars have been accounted directly in the cost line, impacting EBITDA
but reducing depreciation costs.
Divisions 2010* 2011* 2012 2013 2014 1H14 1H15 2Q14 2Q15
Car Rental 45.3% 46.9% 40.9% 36.8% 38.7% 39.1% 32.4% 38.1% 30.3%
Fleet Rental 68.0% 68.6% 66.4% 65.5% 60.0% 61.7% 61.1% 61.5% 62.8%
Rental Consolidated 52.3% 53.8% 49.3% 46.5% 45.3% 46.3% 41.9% 45.4% 41.3%
Used Car Sales 2.6% 2.8% 4.2% 5.7% 6.0% 7.0% 8.2% 7.3% 7.5%
41. 41
Average depreciation per car
in R$
Car Rental
The reduction of depreciation reflects new car prices’ increase at the dealers.
492
939
333
1,169
2,577
1,536 1,684
1,896
1,452 1,270
599
24,345
25,837 25,648
27,740
26,572 27,174
27,942
25,769
27,785
29,412
30,778
15,000
17,000
19,000
21,000
23,000
25,000
27,000
29,000
31,000
33,000
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H15
Annualized average depreciation per car (R$) Average price of cars purchased - Car Rental
1,377
IPI Effect
2,546 2,076
IPI Effect
3,972
Stable car priceRising car price Rising car price
42. 42
Average depreciation per car
in R$
Fleet Rental
2,981
2,383 2,396
2,803
4,372
3,510
4,133
4,311
4,592
4,202 4,118
32,106
33,190 33,754 34,192
30,741
35,414
33,315
35,025 35,693
38,346
45,686
15,000
20,000
25,000
30,000
35,000
40,000
45,000
-
2,000
4,000
6,000
8,000
10,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H15
Annualized average depreciation per car (R$) Average price of cars purchased - Fleet Rental
2,280
IPI Effect
5,083 1,097
IPI Effect
5,408
Stable car priceRising car price Rising car price
The reduction in depreciation reflects new car prices’ increase at the dealers.
The increase in the price of purchased cars also reflects a change in the fleet mix.
43. 43
EBIT Divisions 2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
Car Rental 309.2 380.8 259.0 381.4 464.6 232.2 221.6 113.4 101.7
Franchising 6.2 7.2 8.9 10.9 8.7 5.1 3.3 2.1 1.7
Fleet Rental 166.7 207.7 197.9 259.8 253.4 131.9 140.6 68.9 76.0
Consolidated 482.1 595.7 465.8 652.1 726.7 369.2 365.5 184.4 179.4
Consolidated Margin 41.0% 41.1% 28.3% 37.1% 38.8% 40.1% 40.0% 40.0% 39.8%
38.5% 38.8%
23.7%
32.8%
36.2%
36.5%
46.2% 45.6%
36.9%
45.1% 44.3%
47.1%
2010 2011 2012 2013 2014 1H15
Car Rental
Fleet Rental
EBIT of Car Rental and Fleet Rental contemplates Seminovos results.
*2012 EBIT was impacted by R$144.5 million of additional depreciation related to IPI (sales tax) reduction.
EBIT
Margin calculated over rental revenues
In this industry, EBIT margin is the indicator that best reflects the operating results.
IPI Effect
44. 250.5
291.6
240.9
384.3 410.6
206.4 193.6
100.6 93.4
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
44
Consolidated net income
R$ million
* Pro forma 2012 net income excluding additional depreciation related to the IPI tax reduction, net of income tax.
336.3 *
In 2Q15, the increase of the interest rates impacted financial expenses
in R$ 8.9 million (R$ 6.0 million after tax).
45. Net income variation – 2Q14 to 2Q15
(In R$ million)
2Q14 net
income
100.6
EBITDA
-18.6
Depreciation
13.6
Subtotal
95.6
Interest
-8.9
Income tax
6.7
2Q15 net
income
93.4
The drop of R$18.6 million in EBITDA was largely compensated by
lower depreciation expenses of R$13.6 million.
+
+
46. 46
Free cash flow - FCF
Free cash flow - R$ million 2010 2011 2012 2013 2014 1H15
Operations
EBITDA 649.5 821.3 875.6 916.5 969.8 467.8
Used car sale revenue, net from taxes (1,321.9) (1,468.1) (1,520.0) (1,747.3) (2,018.2) (1,043.2)
Depreciated cost of cars sold 1,203.2 1,328.6 1,360.2 1,543.8 1,777.0 889.3
(-) Income tax and social contribution (57.8) (83.0) (100.9) (108.5) (113.1) (56.1)
Change in working capital 54.5 (83.9) 37.1 2.9 (27.1) (29.5)
Cash provided by rental operations 527.5 514.9 652.0 607.4 588.4 228.3
Capex-
Renewals
Used car sale revenue, net from taxes 1,321.9 1,468.1 1,520.0 1,747.3 2,018.2 835.6
Fleet renewal investment (1,370.1) (1,504.5) (1,563.3) (1,819.7) (2,197.7) (901.3)
Net investment for fleet renewal (48.2) (36.4) (43.3) (72.4) (179.5) (65.7)
Fleet renewal – quantity 47,285 50,772 56,644 62,641 70,621 33,520
Investment, other property and intangibles investments (50.6) (59.9) (77.8) (47.5) (46.3) (10.5)
Free cash flow before growth, new headquarters and interest 428.7 418.6 530.9 487.5 362.6 152.1
Capex-Growth
Fleet growth investment (540.3) (272.0) (55.5) (209.4) (286.8) -
Cash generated by fleet reduction - - - - - 207.6
Change in accounts payable to car suppliers 111.3 32.7 (116.9) 89.7 334.4 (268.2)
Fleet growth (429.0) (239.3) (172.4) (119.7) 47.6 (60.6)
Fleet increase / (reduction) – quantity 18,649 9,178 2,011 7,103 9,183 (6,669)
Free cash flow after growth, and before interest and new HQ (0.3) 179.3 358.5 367.8 410.2 91.5
Capex–
HQ
Investment in the construction of the new HQ (0.5) (3.1) (2.4) (6.5) (55.7) (46.3)
Marketable securities – new HQ - - - - (92.6) -
New headquarters construction (0.5) (3.1) (2.4) (6.5) (148.3) (46.3)
Free cash flow before interest (0.8) 176.2 356.1 361.3 261.9 45.2
359.7
47. 47
- 1,469.5
(99.4)
Interest
Net debt
06/30/2015
Cash generation
before OEMs
and new HQ
359.7
-1,322.3
Net debt
12/31/2014
(84.0)
Dividends
(46.3)
New
headquarters
Changes in net debt
R$ million
The reduction in the balance payable to OEMs is largely due to the
payment of 4Q14’s car purchases anticipation.
(268.2)
OEMs
9.0
Treasury
shares
purchasedAnticipation
of cars
purchase in
4Q14.
48. 2,446.7
2,681.7
2,547.6
2,797.9
3,296.3 3,217.1
2010 2011 2012 2013 2014 1H15
48
Debt - ratios
Net debt + OEMs vs. Fleet value
BALANCE AT THE END OF PERIOD 2010(*) 2011 2012 2013 2014 1H15
Net debt + OEMs / Fleet value 68% 66% 60% 61% 62% 59%
Net debt / Fleet value 52% 51% 48% 48% 40% 46%
Net debt / EBITDA** 2.0x 1.7x 1.4x 1.5x 1.4x 1.6x
Net debt / Equity 1.4x 1.2x 0.9x 1.0x 0.8x 0.8x
EBITDA / Net financial expenses 5.0x 4.6x 6.3x 8.3x 6.4x 4.7x
(*) 2010 ratios based on USGAAP financial statements
**Annualized
OEMs Net debt Fleet value
Comfortable debt ratios.
1,281.1 1,363.4 1,231.2 1,332.8 1,322.3 1,469.5
372.6 405.3 288.4 378.1 712.5 444.3
1,653.7 1,768.7 1,519.6 1,710.9
2,034.8 1,913.8
49. 120.4
288.7 370.8
221.1
594.5 595.0
447.5
2015 2016 2017 2018 2019 2020 2021
49
Debt maturity profile (principal)
R$ million
Strong cash position and comfortable debt profile.
Cash*
1,001.0
As of June 30, 2015
1,321.8
* R$ 1,223.6 refers to cash and R$ 98.2 refers to Marketable Securities.
50. 50
Localiza Level I ADR
Ticker Symbol: LZRFY
CUSIP: 53956W300
ISIN: US53956W3007
Ratio: 1 Common Share : 1 ADR
Exchange: OTC
Depositary bank: Deutsche Bank Trust Company Americas
ADR broker helpline: +1 212 250 9100 (New York)
+44 207 547 6500 (London)
E-mail: adr@db.com
ADR website: www.adr.db.com
Depositary bank’s local custodian: Banco Bradesco S/A, Brazil
51. 51
Disclaimer
Website: www.localiza.com/ir E-mail: ri@localiza.com Phone: 55 31 3247-7024
Roberto Mendes
CFO and IR
Nora Lanari
Head of IR
Eugênio Mattar
CEO
The 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 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 projections 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.
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.
This presentation does not constitute an offer, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither this presentation nor anything
contained herein shall form the basis of any contract or commitment whatsoever.
Maria Carolina Costa
IR Manager
Mariana Campolina
IR Manager