2. 1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 3Q16
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
09/30/2016 – Market cap of about
US$2.6 bi with ADTV of US$10.4
million
1973 1982 1983 2004 2005 2015
3
4. Company: integrated business platform
Synergies:
bargaining power
cost reduction
cross selling
13,868 cars
161 locations in Brazil
70 locations in South America
34 employees
46.5% sold to final consumer
79 stores
49 cities
991 employees
87,897 cars
6.2 million clients
333 locations
4,911 employees
34,437 cars
905 clients
392 employees
Based on the 3Q16 4
Car Rental Fleet Rental
SeminovosFranchising
This integrated business platform gives Localiza flexibility and superior performance.
5. 5
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
6. 6
Net car sale
revenue
R$28.51 year cycle
Car Rental Division - 2015 Financial Cycle
Per car
R$31.6
Average car price
(past 2 years)
1 2 3 4 5 6 7 8 9 10 11 12Expenses, interest and tax
Revenue
Total
1 year
R$ % R$ % R$
Net revenues 20.1 100.0% 31.9 100.0% 52.1
Costs - fixed and variable (9.9) -49.1% (9.9)
SG&A (3.8) -19.1% (3.4) -10.7% (7.2)
Net revenues of car sold 28.5 89.3% 28.5
Book value of car sold (26.6) -83.3% (26.6)
EBITDA 6.4 31.8% 1.9 6.1% 8.3
Cars Depreciation (0.6) -1.9% (0.6)
Others depreciation (0.4) -1.8% (0.1) -0.4% (0.5)
Financial expenses (2.2) -6.9% (2.2)
Taxes (1.8) -9.0% 0.3 1.0% (1.5)
Net Income (Loss) 4.2 21.0% (0.7) -2.3% 3.5
NOPAT 5.0
ROIC 16.0%
Cost of debt after taxes 9.5%
Car Rental Seminovos
Per car soldPer operating car
7. 7
Net car sale
revenue
R$28.4
3 year cycle
Fleet Rental Division - 2015 Financial Cycle
Per car
1 2 3 4 5 6 31 32 33 34 35 36Expenses, interest and tax
Revenue
R$39.0
Average car price
(past 3 years)
Total
3 years
R$ % Seminovos % R$
Net revenues 57.6 100.0% 31.2 100.0% 88.8
Costs - fixed and variable (17.9) -31.1% (17.9)
SG&A (3.9) -6.7% (2.8) -9.1% (6.7)
Net revenues of car sold 28.4 90.9% 28.4
Book value of car sold (24.3) -77.9% (24.3)
EBITDA 35.8 62.2% 4.1 13.0% 39.9
Cars Depreciation (11.8) -37.8% (11.8)
Others depreciation (0.2) -0.4% (0.2) -0.6% (0.4)
Financial expenses (6.0) -19.4% (6.0)
Taxes (10.7) -18.6% 4.2 13.4% (6.5)
Net Income (Loss) 24.9 43.3% (9.8) -31.4% 15.2
Net Income (Loss) - per year 8.3 43.3% (3.3) -31.4% 5.1
NOPAT 6.5
ROIC (it considers the effect of the average book value of the car in its useful life) 16.6%
Cost of debt after taxes 9.5%
Per operating car
Fleet Rental Seminovos
Per car sold
8. 8
2015 Consolidated breakdown
R$ million
R$ 150
16%
R$ 378
40%
R$ 407
44% R$ 297
40%
R$ 438
60%
Net Revenues
R$3,928
EBITDA
R$935
R$ 2,045
52%
R$ 608
16% R$ 1,275
32%
EBIT*
R$735
*Seminovos results recorded in the Car Rental and Fleet Rental Divisions
Company’s profitability comes from
Car Rental and Fleet Rental Divisions.
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
As of September, 2016.
BB+ Fitch
Ba2 Moody’s
BB+ S&P
Baa1 Moody´s B+ S&P
Ba3 Moody´s
BB- S&P
brAA+ S&P
Aa1.br Moody’s
AAA(bra) Fitch
BB S&P
AA- (bra) Fitch
A- (bra) Fitch AA- (bra) Fitch A(bra) Fitch
10
Investment grade: lower spreads and longer tenors
Source: Bloomberg .
Raising
money Buying
cars
Renting Cars Selling
Cars
$
Localiza raises money with better conditions then its competitors.
11. Raising
money Buying
cars
Renting Cars Selling
Cars
75.919
37.444
19.357 13.068
Localiza Movida Unidas Locamerica
11
Competitive advantages: buying cars
Number of cars purchased – 2015
* Includes Franchising and purchase antecipation of Dec/14.
*
Source: each company website and ANFAVEA
Localiza’s share in the internal sales of the
major OEMs - 2015
4.2%
$
Localiza buys cars with better conditions due to the volume of purchases.
12. Raising
money Buying
cars
Renting Cars Selling
Cars
361
150
63
96
Localiza Unidas Hertz Movida
12
Competitive advantages: renting cars
Brand Brazilian distribution
#ofbranches#ofcities
Source: Each company website on 09/30/2016, Localiza´s 3Q16 Earnings Release and Movida´s 2Q16 Earnings Release.
479
92
221
166
Localiza Competitors
494
$
The Company is present in 180 cities where the other largest networks do not operate.
13. Raising
money Buying
cars
Renting Cars Selling
Cars
13
Localiza Express®
Self-service that provides fast
service, reducing queues and
scalability to service.
Localiza Way®
New platform to offer
value-added services
Mobile Checklist
More quality, control and agility
in providing cars for rental
Fast Checkout
More operational productivity
and agility in returning the cars
after rental
Connected Shuttle
Optimization of
customer shuttle service
at airports
Anti fraud
Taylor-made solution for
fraud prevention in car
rentals
Competitive advantages: Innovation
$
Constant innovations allow maintenance of the premium service.
14. 14
Integrated technology solution that
increases competitive intelligence
and leverages productivity gains.
CONNECTED FLEET
Integrated mobile solution to
fleet rental services for drivers
and contract manager.
MOBILE SOLUTION
Rapid diagnosis and friendly
vision of the fleet by the
customer.
ONLINE FLEET RENTAL
Competitive advantages: Innovation
Raising
money Buying
cars
Renting Cars Selling
Cars
$
Differentiated offer with higher added value to the customer.
15. Raising
money Buying
cars
Renting Cars Selling
Cars
15
Sales to final consumer
Competitive advantages: selling cars
Buffer: additional fleet during
peaks of demand
Large database
$
Deep know how of used car market: consumer preference, pricing and residual value
NPS of 70% (survey made 90 days after the purchase)
16. 16
ROIC versus cost of debt after taxes
7.3%
8.6%
6.3% 6.0%
8.0%
9.5% 10.3%
16.9% 17.1%
16.1% 16.5%
17.5% 17.0%
15.3%
2010 2011 2012 2013 2014 2015 9M16
9.6p.p. 8.5p.p. 9.5p.p.
9.8p.p. 10.5p.p.
7.5p.p. 5.0p.p.
2010 to 2014 ROIC considered income tax rate of 30% and 24.5% from 2015 on
Annualized
ROIC Cost of debt after taxes
ROIC was impacted by -0.3 p.p due to antecipated payments to suppliers
Spread of 5.0p.p. despite the adverse scenario and high interest rates
17. Localiza vs. players
Profitability
Source: Companies’ Financial Statements
17
ROIC 2015
ROE 2015
Fleet
RAC+Fleet Rental RAC+Fleet Fleet Rental Fleet Rental RAC+Fleet Rental
124,695 43,342 31,184 28,813 53,439
Reference
ROIC = NOPAT (considering the effective tax rate) / (Average net debt + average equity)
ROE = Net income / Equity at the beginning of the year
17.0%
9.3% 10.5%
6.5%
8.4%
Localiza Unidas Locamerica Ouro Verde JSL Consolidada
24.3%
6.2% 6.0% 5.0% 4.5%
Localiza Unidas Locamerica Ouro Verde JSL Consolidada
18. 18
Net Debt / EBITDA - 2015
Net Debt / Equity - 2015
Source: Companies’ Financial Statements.
For Unidas and JSL Confirming is included in net debt.
Localiza vs. players
Debt ratios
1.7x
2.5x 2.9x
3.8x 4.3x
Localiza Unidas Locamerica Ouro Verde JSL
Consolidated
0.8x 1.1x
2.0x
9.7x
4.6x
Localiza Unidas Locamerica Ouro Verde JSL
Consolidated
19. 19
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 3Q16
Agenda
21. 21
Drivers
Source: BCB and Localiza rates
151
180 200
240
260300
350 380
415
465
510
545
622
678
724
788
51%
38%
37% 35%
31%
27%
22% 20% 18% 16% 15% 15% 13% 13%12% 11%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Monthly minimum salary (R$) Daily rental price over minimum salary (%)
Car rental affordability
Source: IPEADATA and Localiza’s loyalty program.
6 million
84 million
Adult population
(age > 20 years)
Class A+B+C
15 million
Adult population
(age > 20 years)
Class A+B
Increasing affordability and low penetration in leisure trips brings growth opportunities.
22. 22
Drivers
# domestic air traffic passengers
In million
Expected investment 2016-2019
(in R$ billion)
Source: Sectorial Analysis Committee / BNDES: 2016-2019 , as of February,
2016.
Source: ANAC up to 2015 and IATA-Air Passenger Forecast
Global Report, as of April, 2015.
The pipeline of investments tend to benefit
the corporate segment.
Expected annual traffic growth of 4.4% from 2014 to 2034
traffic.
70
82 89 90 96 96
2010 2011 2012 2013 2014 2015
214.1
142.6
87.1
35.8
32.9
32.5
17.0
15.5
5.8
Energy
Telecoms
Highways
Sanitation
Railways
Urban mobility
Airports
Ports
Solid Residues
23. 23
Source: RAIS, each company’s website on 09/30/2016 and Localiza´s 3Q16 Earnings Release
Airport locations Off-airport locations
Car Rental Locations in Brazil
Off-airport market is still fragmented.
24. 24
Market Share – Car Rental 2015
Source: ABLA and Companies’ Financial Statements and estimates.
Localiza’s market share is higher than the 2nd and 3rd players together.
# of companies: 7,455
Fleet: 375.4k
Reference: ABLA increased data collection basis for mapping car rental market in 2015, the number of Car Rental Locations
reached 7.455 from 5.624 in 2014 and fleet went to 375,4k from 332,5k in 2014.
20.4%
2.0%
6.0%
9.9%
61.7%
Movida
37.1k
Unidas
22.6k
Others
231.8k
22.4%76.8k
7.2k
25. 25
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 3Q16
Agenda
26. 26
Number of clients
Fleet Rental overview
Compact cars
34.9%
Others 65.1%
2015 Fleet composition
33,948 cars
729 760 798 849 905
2012 2013 2014 2015 9M16
End of period fleet
32,104 32,809 34,312 33,948 34,437
2012 2013 2014 2015 9M16
27. 27
Source: ABLA, Datamonitor and Localiza
Rented fleet penetration
Corporate fleet:
4,000,000*
Rented fleet:
440,737
33,948
Brazilian Market World
11.0% 8.9%
13.3%
16.5%
24.5%
37.4%
46.9%
58.3%
Drivers
*Localiza estimates
Low penetration of rented fleet in Brazil.
28. Market Share – Fleet Rental 2015
28
Source: ABLA, Companies’ Financial Statements and estimates
Fragmented market with low entry barriers.
Reference: ABLA increased data collection basis for mapping car rental market in 2015, the number of Car Rental Locations
reached 7,455 from 5,624 in 2014 and fleet went to 477.8k from 440.7k in 2014.
# of companies: 7,455
Fleet: 477.8k
33.9k
7.1% 1.7k
0.4% 20.8k
4.3%
16.3k
3.4%
23.8k
5.0%
31.2K
6.5%
350.1k
65.5%
Movida
Unidas
Others Ouro
Verde
Locamerica
7.5%
29. 29
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 3Q16
Agenda
30. 30
# of points of sale
Car sales – operating data
55
66
73 74 75
77 79
2010 2011 2012 2013 2014 2015 9M16
47,285
50,772
56,664
62,641
70,621
64,305
47,566
2010 2011 2012 2013 2014 2015 9M16
# Number of cars sold (quantity)
Efficiency gain on car sales.
31. 31
Used car sales drivers:
affordability and penetration
Affordability to buy cars – Public Price of the most
basic Gol
300 350
380 415
465
510
545
622
678
724
78884
71 69
61
55
51 49
43 43 43 41
-
10
20
30
40
50
60
70
80
90
-100
-
100
200
300
400
500
600
700
800
900
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Minimum wage (R$) Minimum wages to buy a new car
7.9
7.7
7.3
6.9
6.5
6.0
5.7
5.3
5.0 4.9 4.8
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
# of inhabitants per car – Brazil 2005 - 2015
Source: Sindipeças - Current Fleet Report 2016, as of April 2016.
Developed countries maintain a ratio between 1 - 2
cars per inhabitant.
Source: BCB and Localiza
Reference: to calculate the minimum wages to buy a new car we used
the public price of the Vehicle type Gol.
32. 8.4 8.9
9.0 9.4
10.1 9.9
3.3 3.5 3.6 3.6 3.3
2.5
32
2.5x
2.5x
2010 2011 2012 2013 2014 2015
2.6x
Brazilian car market:
new x used car market and affordability
New cars
Used cars
Source: FENABRAVE (light and commercial cars)
2.6x 3.1x 4.0x
In million of cars
Total market of 12.4 million cars.
33. 33
2015 Up to 2 years
419,085
2015 Brand new
2,476,9042015 Used cars
9,987,711
0.6% 2.6% 15,3%
Car sales – operating data
Source: Anfavea and Fenabrave
Unidas, Locamerrica and Movida websites
Examples • Retailers • Dealers • Rental operators • “Auto malls”
Points of sale • 48,000 (Fenauto) • 4,364 (Anfavea)
• +78 (Unidas, Movida,
Locamerica)
• 71 (Fenauto)
Main players
34. 34
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 3Q16
Agenda
41. Car sales
17,379 cars sold in 3Q16
17,449
16,071
15,73815,047
16,348
13,839
17,379
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Number of cars sold
41
5,296
7,428
8,534
7,253
5,355
3,662
5,894
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
Cars in Seminovos stores (Average)
The ordered cars delivery normalization from the OEMs allowed the retrieval of the
fleet decommissioning
Increase in useful
life of cars
Increase in useful
life of cars
42. 42
Consolidated EBITDA
R$ million
(*)From 2012 onwards, accessories and freight of new cars have been accounted directly in the cost line, impacting EBITDA but
reducing depreciation costs.
(**) It considers the new appropriation criteria of the overhead, which is also appropriated to Seminovos.
Divisions 2010* 2011* 2012 2013 2014** 2015 9M15 9M16 3Q15 3Q16
Car Rental 45.3% 46.9% 40.9% 36.8% 38.7% 31.8% 32.4% 32.7% 32.4% 31.9%
Fleet Rental 68.0% 68.6% 66.4% 65.5% 60.0% 62.2% 61.6% 64.7% 62.6% 64.5%
Rental Consolidated 52.3% 53.8% 49.3% 46.5% 45.3% 41.7% 42.0% 42.9% 42,3% 42.1%
Used Car Sales 2.6% 2.8% 4.2% 5.7% 6.0% 7.3% 8.0% 5.6% 7,5% 4.9%
R$13.3 million increase in 3Q16 and R$37.9 million in 9M16
649.5
821.3 875.6 916.5 969.8 934.8
706.7 744.6
238.8 252.1
2010 2011 2012 2013 2014 2015 9M15 9M16 3Q15 3Q16
+ R$37.9
+ R$13.3
43. 43
Average depreciation per car (in R$)
Car Rental
The average depreciation increase in Car Rental is due to:
• decelerated increase in new car prices
• acceleration of the renewal of fleet older than 12 months
1,536.0 1,683.9
1,895.8 1,452.4 1,270.0
622.1
1,120.7
2010 2011 2012 2013 2014 2015 9M16
2,076.6
IPI Effect
3,972.4
Annualized
Average Price of cars purchased
In R$ Thousand
29.41
33.87 35.954.46 2.08
Price 2014 Increase Price 2015 Increase Price 9M16
8,233
13,669 12,806
17,635
5,123
21,010
24,799
1Q 2Q 3Q 4Q
2016
2015
Cars Purchased
Increase in useful
life in 1S16
2015 2016
44. 44
Average depreciation per car (in R$)
The drop in depreciation is due to a longer cycle
3,509.7
4,133.0
4,311.3
4,592.3
4,202.1 3,935.2 3,835.9
2010 2011 2012 2013 2014 2015 9M16
1,096.9
IPI Effect
5,408.2
Annualized
Fleet Rental
45. 45
Consolidated EBIT
R$ million
Divisions 2010 2011 2012 2013 2014 2015 9M15 9M16 3Q15 3Q16
Car Rental 38.5% 38.8% 23.7% 32.8% 36.2% 34.3% 36.3% 31.0% 36.0% 28.1%
Fleet Rental 46.2% 45.6% 36.9% 45.1% 44.3% 48.9% 48.5% 50.8% 51.3% 51.4%
Consolidated 41.0% 41.1% 28.3% 37.1% 38.8% 39.1% 40.4% 37.3% 41.0% 35.4%
R$7.1 million drop in EBIT is due to:
• R$13.3 million EBITDA increase
• offset by R$20.4 million higher depreciation
482.1
595.7
465.8
652.1
726.7 735.5
560.4 569.1
194.9 187.8
2010 2011 2012 2013 2014 2015 9M15 9M16 3Q15 3Q16
144.5
IPI Effect
610.3
+ R$8.7
- R$7.1
46. 46
Consolidated net income
R$ million
The company is committed to the business profitability
250.5
291.6
240.9
384.3 410.6 402.4
296.5 304.9
102.9 103.9
2010 2011 2012 2013 2014 2015 9M15 9M16 3Q15 3Q16
336.3
95.4
IPI Effect
Reconciliation EBITDA x Net income 2010 2011 2012 2013 2014 2015 9M15 9M16 Var. R$ Var. % 3Q15 3Q16 Var. R$ Var. %
Consolidated EBITDA 649.5 821.3 875.6 916.5 969.8 934.8 706.7 744.6 37.9 5.4% 238.8 252.1 13.3 5.6%
Cars depreciation (146.3) (201.5) (232.4) (229.0) (207.4) (163.6) (119.5) (146.8) (27.3) 22.8% (34.8) (54.7) (19.9) 57.2%
Cars additional depreciation – IPI effect - - (144.5) - - - - - - - - - - -
Other property depreciation and amortization (21.1) (24.1) (32.9) (35.4) (35.7) (35.7) (26.8) (28.7) (1.9) 7.1% (9.1) (9.6) (0.5) 5.5%
EBIT 482.1 595.7 465.8 652.1 726.7 735.5 560.4 569.1 8.7 1,6% 194.9 187.8 (7.1) -3.6%
Financial expenses, net (130.1) (179.0) (138.7) (110.6) (151.1) (202.7) (159.1) (170.8) (11.7) 7.4% (59.7) (53.7) 6.0 -10.1%
Income tax and social contribution (101.5) (125.1) (135.3) (157.2) (165.0) (130.4) (104.8) (93.4) 11.4 -10.9% (32.3) (30.2) 2.1 -6.5%
Income tax and social contribution – IPI effect - - 49.1 - - - - - - - - - - -
Net income of the period 250.5 291.6 240.9 384.3 410.6 402.4 296.5 304.9 8.4 2.8% 102.9 103.9 1.0 1.0%
47. 47
Free cash flow - FCF
Free cash flow - R$ million 2010 2011 2012 2013 2014 2015 9M16
w
Operations EBITDA 649.5 821.3 875.6 916.5 969.8 934.8 744.6
Used car sale revenue, net from taxes (1,321.9) (1,468.1) (1,520.0) (1,747.3) (2,018.2) (2,044.9) (1,609.4)
Depreciated cost of cars sold (*) 1,203.2 1,328.6 1,360.2 1,543.8 1,777.0 1,769.1 1,438.4
(-) Income tax and social contribution (57.8) (83.0) (100.9) (108.5) (113.1) (110.7) (73.8)
Change in working capital 54.5 (83.9) 37.1 2.9 (27.1) (30.0) (26.3)
Cash generated by rental operations 527.5 514.9 652.0 607.4 588.4 518.3 473.5
Capex-
Renewals
Used car sale revenue, net from taxes 1,321.9 1,468.1 1,520.0 1,747.3 2,018.2 2,036.3 1,609.4
Fleet renewal investment (1,370.1) (1,504.5) (1,563.3) (1,819.7) (2,197.7) (2,278.4) (1,756.1)
Net investment for fleet renewal (48.2) (36.4) (43.3) (72.4) (179.5) (242.1) (146.7)
Fleet renewal – quantity 47,285 50,772 56,644 62,641 70,621 64,032 47,566
Investment, other property and intangibles investments (50.6) (59.9) (77.8) (47.5) (46.3) (29.7) (26.9)
Free cash flow from operations, net of fleet renewal capex 428.7 418.6 530.9 487.5 362.6 246.5 299.9
Capex-Growth
Fleet growth (investment) (540.3) (272.0) (55.5) (209.4) (286.8) 8.6 (455.8)
Change in accounts payable to car suppliers 111.3 32.7 (116.9) 89.7 334.4 (121.2) 193.6
Fleet growth (429.0) (239.3) (172.4) (119.7) 47.6 (112.6) (262.2)
Fleet increase / (reduction) – quantity 18,649 9,178 2,011 7,103 9,183 (273) 12,346
Free cash flow after growth, and before interest and new HQ (0.3) 179.3 358.5 367.8 410.2 133.9 37.7
New headquarters construction (0.5) (3.1) (2.4) (6.5) (148.3) (30.7) (52.1)
Free cash flow before interest (0.8) 176.2 356.1 361.3 261.9 103.2 (14.4)
Free cash flow
(*) without the technical discounts reduction up to 2010
48. 48
Changes in net debt
R$ million
The increase of R$291.8 million in net debt was mainly due to fleet increase
299.9
(170.8)
(455.8)
193.6
(52.1)
(106.4)
(1,880.2)
Net Debt
09/30/2016
(1,588.6)
Net Debt
12/31/2015
Free cash flow after
fleet renewal and
before headquarters
Interest
Fleet
Increase of
12,346 cars
Increase in
accounts
payable to
cars
suppliers
New
headquarters
construction
Dividends
+129.1 (262.2) (158.5)
The debt was impacted by R$248.0 million in anticipated payments to suppliers which
were due after 3Q16
49. 49
Debt maturity profile (principal)
R$ million
Confortable cash position and debt profile
As of September 30, 2016
99.5
523.1
299.1
619.5
770.0
672.5
2016 2017 2018 2019 2020 2021
Cash
1,169.3
2016
921.7
50. 50
Debt - ratios
Net debt vs. Fleet value
BALANCE AT THE END OF PERIOD 2010(*) 2011 2012 2013 2014 2015 9M16
Net debt / Fleet value 52% 51% 48% 48% 40% 44% 44%
Net debt / EBITDA(**) 2.0x 1.7x 1.4x 1.5x 1.4x 1.7x 1.9x
Net debt / Equity 1.4x 1.2x 0.9x 1.0x 0.8x 0.8x 0.9x
EBITDA / Net financial expenses 5.0x 4.6x 6.3x 8.3x 6.4x 4.6x 4.4x
(*) 2010 ratios based on USGAAP financial statements
(**) Annualized
Net debt Fleet value
Comfortable debt ratios
1,281.1 1,363.4 1,231.2 1,332.8 1,322.3 1,588.6
1,880.2
2,446.7 2,681.7 2,547.6 2,797.9
3,296.3
3,642.7
4,269.5
2010 2011 2012 2013 2014 2015 9M16
51. 51
ROIC versus cost of debt after taxes
ROIC was impacted by -0.3 p.p due to antecipated payments to suppliers
7.3%
8.6%
6.3% 6.0%
8.0%
9.5% 10.3%
16.9% 17.1%
16.1% 16.5%
17.5% 17.0%
15.3%
2010 2011 2012 2013 2014 2015 9M16
9.6p.p. 8.5p.p. 9.5p.p.
9.8p.p. 10.5p.p.
7.5p.p. 5.0p.p.
2010 to 2014 ROIC considered income tax rate of 30% and 24.5% from 2015 on
Annualized
ROIC Cost of debt after taxes
Spread of 5.0p.p. despite the adverse scenario and high interest rates
52. 52
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
53. 53
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