2. Agenda
1. Company overview
2. Main business divisions
Car rental
Fleet rental
Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
Brazil – Macroeconomic scenario
Earnings release 3Q12
2
3. Company: milestones
Phase I – Rise to #1 Phase II – Expansion Phase III – Reaching Scale
1973 – Founded in Belo Horizonte/MG 1984 – Expansion strategy by 2005 – IPO: market cap of US$ 295 mm
adjacencies: Franchising
Late 70’s - Acquisitions in the 2011 – Rated as investment grade by
Northeast of Brazil 1991 – Expansion strategy by Moody’s, Fitch and more recently S&P
adjacencies: Seminovos
1981 – Brazilian car rental leader in # 2012 – ADR level I
of branches 1997 – PE firm DL&J enters at a market
cap of US$ 150 mm 08/30/2012 – Market cap pf US$3.6 bi
with ADTV of R$34.9 million
1997 – Expansion strategy by
adjacencies: Fleet rental
1973 1982 1983 1990 2004 2005 2011
3
4. Company: integrated business platform
61,303 cars 32,027 cars
3.1 million clients 716 clients
262 locations 349 employees
4,228 employees
Synergies:
bargaining power
cost reduction
cross selling
13,982 cars 67.4% sold to final consumer
202 locations in Brazil 73 stores
49 locations in South America 1,032 employees
33 employees
This integrated business platform gives Localiza flexibility and superior performance.
4
Based on the 3Q12
5. Company: Business platform divisions
Car rental Franchising Fleet management Used car sales
Localiza car rental rents to Supplementary business, Total Fleet, offering Support area, with the
individuals or businesses with the purpose to expand customized fleet for terms objective to sell the
at airports and other the brand’s network. of 2-3 years. Company’s used cars and
locations. add know-how in buying
cars and to estimate the
residual value.
The traditional backbone of Franchising is seen as a Total Fleet is seen as an As a support business
Localiza. With its giant fleet primarily strategic business additional business that activity, Seminovos enables
that gets renewed annually, by management – the generates value by the sell 70% of used cars
it lays the foundation for all revenues generated are leveraging synergies directly to the final
scale effects captured by low, however brand and created by the integrated customer, thereby
the group as a whole. network expand at platform approach. maximizing the residual
minimum capital value of used rental cars.
expenditure.
5
6. Financial cycle
Net car sale revenue
1 - year cycle
$26.4
Revenue
1 2 3 4 5 Expenses, interest and tax 8 9 10 11 12
$27.5
Car acquisition
Fleet Rental Seminovos Total
2011 per operating car per operating car per year
R$ % R$ % R$
Net Revenues 19,1 100,0% 29,2 100,0% 48,3
Cost s (7,4) -38,7% - 0,0% (7,4)
SG&A (2,7) -14,1% (2,8) -9,6% (5,5)
Net car sale revenue 26,4 90,4% 26,4
Book value of car sale (25,7) -90,0% (25,7)
EBITDA 9,0 47,2% 0,7 2,4% 9,7
Depreciation (vehicle) (2,0) -6,8% (2,0)
Depreciation (non-vehicle) (0,3) -1,6% (0,3)
Interest on debt (2,4) -8,2% (2,4)
Tax (2,7) -14,2% 1,1 3,8% (1,6)
NET INCOME 6,0 31,5% (2,6) -8,9% 3,4
NOPAT 5,2
ROIC 18,9% Spread
Cost of debt after tax (CDI+1,5%) 8,6% 10,3p.p.
6
7. Financial cycle
Net car sale revenue
2 - year cycle
$26.3
Revenue
1 2 3 4 5 Expenses, interest and tax 20 21 22 23 24
$36.1
Car acquisition
Fleet Rental Seminovos Total
per operating car per operating car per year
2011 R$ % R$ % R$
Net Revenues 16,3 100,0% 28,6 100,0% 44,9
Costs (4,2) -25,8% - 0,0% (4,2)
SG&A (0,9) -5,5% (2,3) -8,0% (3,2)
Net car sale revenue 26,3 92,0% 26,3
Book value of car sale (24,9) -90,0% (24,9)
EBITDA 11,2 68,7% 1,4 4,9% 12,6
Depreciation (vehicle) (4,2) -14,7% (4,2)
Depreciation (non-vehicle) (0,1) -0,6% (0,1)
Interest on debt (2,0) -7,0% (2,0)
Tax (3,4) -20,6% 1,4 5,0% (1,9)
NET INCOME 7,7 47,5% (3,4) -11,7% 4,4
NOPAT 5,8
ROIC 16,1% Spread
Cost of debt after tax (CDI+1,5%) 8,6% 7,5p.p.
7
8. Rental revenues evolution
Localiza’s rental revenues at constant prices
6.4%
CAGR: 1 1,483.5
1,720.9
1,156.6 1,168.4
819.3 943.2
594.0 692.7
16.0%
2004 2005 2006 2007 2008 2009 2010 2011
Sector’s revenue at constant prices
CAGR: 5.8%
5,412.0 5,690.0
4,668.0 4,827.7
3,841.6 3,876.7 3,995.7 4,265.2
5.1%
2004 2005 2006 2007 2008 2009 2010 2011
GDP 5.7% 3.2% 4.0% 6.1% 5.2% -0.3% 7.5% 2.7%
CAGR:4.0%
In 2011 the Company grew 5,9x GDP and sector 1,9x.
8
9. Spread
21.25%
18.70% 17.03% 17.12%
16.94% 15.70%
11.54%
7.8p.p. 12.9p.p.
8.2p.p. 9.6p.p. 8.5p.p.
4.0p.p. 9.0p.p.
10.90%
8.40% 8.84% 7.59% 7.33% 8.60%
6.67%
2006 2007 2008 2009 2010 2011 9M12
annualized
Cost of debt after tax ROIC
2006 2007 2008 2009 2010 2011 9M12 a
Average capital investment - R$ million 986.2 1,137.5 1,642.3 1,702.3 1,984.6 2,445.3 2,613.2
NOPAT Margin
(over rental net revenues) 34.5% 36.9% 32.1%* 21.9% 28.6% 28.9% 25.3%*
Turnover of average capital investment
(over rental net revenues) 0.55x 0.58x 0.53x 0.53x 0.59x 0.59x 0.62x
ROIC 18.7% 21.3% 17.0% 11.5% 16.9% 17.1% 15.7%
Interest on debt after tax 10.90% 8.40% 8.84% 7.59% 7.33% 8.60% 6.67%
Spread (ROIC – Interest after tax) - p.p. 7.8 12.9 8.2 4.0 9.6 8.5 9.0
(*) 2008 and 2012 NOPAT were calculated excluding additional fleet depreciation that was treated as equity loss since they were
extraordinary non-recurring events caused by external factors (IPI reduction for new cars), following the concepts recommended by Stern
Stewart.
9
10. Competitive advantages: 38 years of experience in managing assets
Profitability comes from rental divisions
Renting cars Selling
Raising Buying cars
money cars
$
$
Cash to renew the fleet or pay debt
10
11. Competitive advantages: raising money
Raising Buying Selling
Renting cars
money cars cars
National Scale brAAA S&P brA S&P
brA- S&P
Aa1.br Moody’s A (bra) Fitch A- (bra) Fitch
A- (bra) Fitch
AA+(bra) Fitch
Global Scale BBB- Fitch
Baa3 Moody’s BBB+ S&P B+ S&P B+ Fitch B2 Moody's
BBB- S&P
Localiza raises money with lower spreads when compared to Brazilian competitors.
As of September, 2012. 11
12. Competitive advantages: buying cars
Raising Buying Selling
Renting cars
money cars cars
Better conditions due to higher volumes
Number of cars purchased - 2011 Localiza - Purchases by brand in 2011
59,950 Renault
Others
Ford 9.9%
1.3%
11.0%
15,341
11,052 Fiat
GM
39.3%
21.0%
Localiza Unidas Locamerica VW
17.5%
Localiza purchased 2.3% of the national production from the main automakers in 2011 .
12
13. Competitive advantages: renting cars
Raising Buying Selling
Renting cars
money cars cars
Brand Know How Brazilian distribution
452
# of branches
289
62
107
120
# of cities
318
71 60
32
Localiza Hertz Unidas Avis
The Company is present in 213 cities where the other largest networks do not operate.
13
Source: Brand Analytics and each company website (May, 2012)
14. Competitive advantages: selling cars
Raising Buying Selling
Renting cars
money cars cars
Sales to final consumer Buffer: additional fleet
Selling directly to final consumer cutting the intermediaries reduces our depreciation.
Cars available for sale are used by the car rental division during peaks of demand.
14
15. Agenda
1. Company overview
2. Main business divisions
Car rental
Fleet rental
Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
Brazil – Macroeconomic scenario
Earnings release 3Q12
15
17. Distribution
Car rental distribution (Brazil)
415 449 452 464
346 381
279 312
254
2005 2006 2007 2008 2009 2010 2011 1H12 9M12
# of branches # of cities
452
318
289
62
107
71 60
32
120
Localiza Hertz Unidas Avis
Localiza holds an extraordinarily strong position in the Brazilian market, as over decades it has
been successfully competing against major global players through local scale.
17
Source: Each company’s website as of May, 2012.
18. Market share
Car Rental market share - Brazil
(# of cars)
36.5%
Car rental locations in Brazil
Airport locations Off-airport locations
Others Localiza
Avis 36 Localiza Hertz
351
35 101 Unidas
78
73
Avis
27
Others
Unidas Hertz
2079
34 42
Off-airport market is still fragmented.
18
Source: ABLA (Brazilian Car Rental Association) and each company’s website (May, 2012)
19. Main competitors
Market share (2010)* 6.7% 3.1% 2.8%
Airport locations 34 35 42
Off-airport locations 73 27 78
• Capitalized by three
• International brand • International brand
Strengths Private Equity funds
• Local expertise • Local expertise
• Local expertise
• Weak footprint
• Relatively weak brand • Weak footprint in Brazil
• Weak footprint in Brazil
• Unclear priorities between • Master franchisee in Brazil in
Weaknesses • Used car sales retail network
rental and fleet business “Chapter 11”
• Used car sales retail • Used car sales retail network
network
19
*Source: Roland Berger report, as of June 21, 2012, based on 2010 figures
20. Drivers
Investments in Brazil Air traffic passengers - million
679
%
% 16.2
20.3 179
% 154
343 80.3 128
182 71
85 83 107
2003 2009 2010 2011
s
gy
try
e
s
n
ga
ag
er
tio
er
us
th
il/
ew
ta
En
d
O
O
or
In
/s
sp
er
at
an
W
Tr
Car rental affordability GDP per capita
645
(R$ thousands)
545
51% 510
465 21.3
415 19.0
38% 380 16.0 16.6
37% 35% 350
14.2
300
11.7 12.8
260 10.7
240
8.4 9.5
180 200 6.9 7.5
151 31%
27%
22% 20%
18% 16% 15% 15% 13%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Monthly m inim um salary (R$) Daily rental price over m inim um salary (%)
20
21. Agenda
1. Company overview
2. Main business divisions
Car rental
Fleet rental
Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
Brazil – Macroeconomic scenario
Earnings release 3Q12
21
23. Drivers
Outsourced fleet penetration
Brazilian Market World
58.3%
Corporate fleet: 46.9%
4,200,000 37.4%
24.5%
Targeted fleet: 16.5%
13.3%
500,000 5.4%
8.9%
Rented fleet:
nd
l
k
nd
n
ce
lic
y
zi
U
ai
an
ra
la
an
la
b
Sp
pu
m
ol
B
Po
Fr
245,000
er
H
Re
G
ch
ze
C
31,629
Less than 50% of targeted fleet is rented.
23
Source: ABLA and Datamonitor
24. Market share
Fleet Rental division - Brazil
(# of cars)
13.9%
The business greatly profits from synergies with its car rental affiliate, and as the Brazilian economy
matures, one can expect a higher percentage of companies to take advantage of fleet rental.
24
Source: based on ABLA 2012 yearbook
25. Main competitors
Market share* 9.5% 7.1%
Revenues (R$ million) 272.5 204.7
Fleet size 27,262 16,418
• Capitalized
• Brazil’s second player
Strengths • Synergies with its rental car
• Successful IPO 04/2012
business area
• Low profitability (competing • Loss making in the last six
on price in the pursuit of years (competing on price in
Weaknesses market share) the pursuit of market share)
• Depreciation calculus • Used car sales retail network
• Used car sales retail network
25
*Source: Roland Berger report, as of June 21, 2012, based on 2011 figures.
26. Agenda
1. Company overview
2. Main business divisions
Car rental
Fleet rental
Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
Brazil – Macroeconomic scenario
Earnings release 3Q12
26
27. Car sales – operating data
Localiza launched Seminovos in 1993, a brand new concept featuring younger cars.
# of points of sale
+7
73
66
55
49
32 35
26
2006 2007 2008 2009 2010 2011 9M 12
Combining the Localiza brand with a growing network of stores
enables the firm to continuously sell thousands of cars at market prices.
27
Source: Fenabrave 2011
28. Used car sales drivers: affordability and penetration
# of inhabitants per car (2011) # of inhabitants per car - Brazil
USA 1.3
United Kingdon 1.8 8.0 7.9
Germany 1.9
7.4
France 2.0
6.9
Japan 2.1 6.5
South Korea 3.6
5.9
Russia 4.0 5.5
Argentina 4.2
Brazil 5.5
2005 2006 2007 2008 2009 2010 2011
Income increase and credit availability are the major drivers for car sales.
Source: O Estado de São Paulo, as of 04/15/12 (based on researches of Sindipeças, Roland Berger and PWC). 28
29. Brazilian car market: new x used car market and affordability
17.4
Individuals with
15.8 affordability to
buy a new car*
11.9
8.9 8.9
8.4 Used cars
7.9
7.0 7.3 7.1
6.8 7.1
5.6
6.7
2.5x 2.6x
2.4x
2.7x
3.7x 3.1x
4.4x New cars
3.3 3.5
3.0
2.7
2.3
1.6 1.8
2005 2006 2007 2008 2009 2010 2011
* Population with affordability to buy a new compact car (R$25,000) with 20% downpayment
Used car market is currently 2.6x the new car market.
29
Source: FENABRAVE (Autos + light commercial) and Bradesco
31. Main competitors
• Dealers • “Auto malls” and
• Rental operators • Retailers
Examples • Fiat, VW, Ford, GM most “Cidade do
• Locamerica, Hertz • “Loja do carro”
successful automóvel”
• Brand and perceived • Tailored to popular • Comfort and
• Often appeal to lower
image/ experience customer demand at convenience
income classes, with
• Support often directly purchase, hence likely • Variety of models
Strengths older cars
from the OEM’s to be an attractive value and brands
• Occasionally
• Flexibility in trade-in cars proposition when for • Flexibility in
specialized in niches
• Strong media presence sale exchange
• Stigma about heavy
• Lower media
usage during rental car • No brand recognition
• Used cars not a core presence
years (lower reputation
business • Cars often older than
Weaknesses • Weak retail network market)
• Cars often older than 2 2 years
• Geographical • Financing options with
years • It hasn’t been
concentration (SP) higher interest rates
successful
• Lower media presence
Points of sale • 3,714 (Anfavea) • 29* • 45,600 (Fenauto) • 71 (Fenauto)
*Based on the main companies reports and websites.
31
32. Satisfaction survey
2011 - Would you recommend Seminovos? YES!
94.0%
94.0% 92.3% 94.0%
2009 2010 2011
Customers recognize our quality and recommend it!
32
Source: based on phone interviews made by the Company with customers started in 2009
33. Agenda
1. Company overview
2. Main business divisions
Car rental
Fleet rental
Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
Brazil – Macroeconomic scenario
Earnings release 3Q12
33
35. Consolidated net revenues
R$ million
21.0%
2,918.1
5%
C AGR: 2,497.2 10. 2,371.2
2,145.4
1,823.7 1,820.9 1.468,1
1.321,9 1.157,3
1,505.5 1.088,0 %
1,126.2 980,8 922,4 6.5 807.0
850,5 757.5
588,8 1.450,0 %
842,9 898,5
1.175,3 1.057,4 14.8 1.213,9 394,6 3.6% 394,7
537,4 655,0 1
362,9 412,3
2006 2007 2008 2009 2010 2011 9M11 9M12 3Q11 3Q12
Rental Seminovos
Rental revenues grew 13.6% in the quarter. Seminovos revenues were impacted by the IPI reduction.
35
36. Consolidated EBITDA
R$ million
CAGR: 21.4% 821.3
649.5
7.7%
603.0 649.3
403.5
504.1 469.7
3.5%
311.3
216.2 223.7
2006 2007 2008 2009 2010 2011 9M11 9M12 3Q11 3Q12
Proforma EBITDA margin for rental divisions:
Divisions 2006 2007 2008 2009 2010 2011 9M11 9M12 3Q11 3Q12
Car Rental 42.7% 45.0% 43.5% 39.8% 43.5% 43.9%* 43.8%* 41.1% 45.7%* 40.7%
Fleet Rental 70.7% 70.3% 67.5% 67.5% 66.7% 66.8%* 67.0%* 66.3% 68.3%* 66.7%
Rental Consolidated 52.4% 53.6% 51.2% 49.3% 50.7% 51.2%* 51.1%* 49.4% 53.1%* 49.5%
Used Car Sales 4.6% 5.5% 5.6% 1.1% 2.6% 2.8% 3.1% 4.2% 1.9% 4.9%
*It considers not only the adjustment of the accessories but also the reversal of the non-recurring provisions of R$10.6 million in 3Q11.
EBITDA margin was impacted by the increase in properties rentals and personnel expenses.
36
37. Average depreciation per car
in R$
Reflex of the IPI reduction
4,647.40
Financial crisis effect
3,084.40
Hot used car market 2,546.00 2,577.00
1,536.00 1,683.90
939.10
332.90
2006 2007 2008 2009 2010 2011 9M12 * 3Q12 *
* Annualized
Reflex of the IPI reduction
Financial crisis effect
5,549.30 5,831.20
5,083.10
Hot used car market 4,371.70 4,133.00
3,509.70
2,383.30 2,395.80
2006 2007 2008 2009 2010 2011 9M12 * 3Q12 * * Annualized
37
38. Breakdown of the car depreciation
in R$
Car rental
4,050.80
1,536.00 1,683.90
1,199.90 1,304.80 1,213.80
2010 2011 3Q12 * 3Q12 *
Cars purchased after Cars purchased before
the IPI reduction the IPI reduction
Cars’ average depreciation Accessories’ average depreciation
* Annualized depreciation of the cars purchased after the IPI reduction.
Average depreciation per car of the cars purchased after the IPI reduction
is in line with previous years’ depreciation.
38
39. Additional depreciation as a result of the IPI reduction
R$ million
Fleet as of Sep/12
Additional depreciation Cars by year of maturity of estimated useful life (quantity)
Division Accounted Estimated
Total 2012 2013 2014 2015 Total
2Q12 3Q12 Subtotal After 3Q12
85.0 20.0 105.0 (*) 11.0 116.0 28,433 8,059 36,629
Car rental 133 4
73.3% 17.2% 90.5% 9.5% 100.0% 77.6% 22.0% 0.4% 0.0% 100.0%
15.0 4.5 19.5 (*) 45.0 64.5 2,703 9,772 10,954 3,381 26,810
Fleet rental
23.3% 6.9% 30.2% 69.8% 100.0% 10.1% 36.4% 40.9% 12.6% 100.0%
Consolidated 100.0 24.5 124.5 (*) 56.0 180.5 31,136 17,831 11,087 3,385 63,439
90.5% of the additional depreciation in car rental division was already accounted.
39
40. Consolidated net income
R$ million
%
16.4
291.6
250.5 -27.3
212.9 %
190.2
154.8
138.2 127.4 -5.2%
116.3
75.3
71.4
2006 2007 2008 2009 2010 2011 9M11 9M12 3Q11 3Q12
Reconciliation EBITDA x net income 2009 2010 2011Var. R$ Var. % 9M11 9M12 Var. R$ Var. % 3Q11 3Q12 Var. R$ Var. %
Consolidated EBITDA 469.7 649.5 821.3 171.8 26.5% 603.0 649.3 46.3 7.7% 216.2 223.7 7.5 3.5%
(172.3) (146.3) (201.5) (55.2) 37.7% (143.5) (309.8) (166.3) 115.9% (53.9) (86.5) (32.6) 60.5%
Cars depreciation
Other property and equipament depreciation (21.0) (21.1) (24.1) (3.0) 14.2% (17.4) (23.9) (6.5) 37.4% (5.0) (8.4) (3.4) 68.0%
Financial expenses, net (112.9) (130.1) (179.0) (48.9) 37.6% (137.8) (108.2) 29.6 -21.5% (49.8) (30.4) 19.4 -39.0%
Income tax and social contribution (47.2) (101.5) (125.1) (23.6) 23.3% (91.4) (52.6) 38.8 -42.5% (32.2) (27.0) 5.2 -16.1%
Net income 116.3 250.5 291.6 41.1 16.4% 212.9 154.8 (58.1) -27.3% 75.3 71.4 (3.9) -5.2%
Excluding the additional depreciation of R$24.5 million, deduced of the income tax,
3Q12 net income would have reached R$87.6 million.
40
41. SWOT Analysis: Localiza business platform
According to Roland Berger report as of June 21, 2012
Strengths Weaknesses
• Unrivaled local scale • Strong focus on airport locations
• Strong footprint in Brazil’s extreme traffic locations • Renewal of airport concessions costly
• Vertical integration, creating synergies for all four • Dependence on passengers travelling by air (growth
businesses limited by Brazilian infrastructure)
• Strong business operating performance and • Weak footprint outside of Brazil, resulting in
experienced leadership exposure to national economic development
• Dependence on long-term capital to finance renewal
of fleet
Opportunities Threats
•Increase in market share through further •Any measures of the Brazilian government which
consolidation of Brazilian rental car market impact car sales prices, potentially lowering asset
value (e.g. new car sales tax)
•Underdeveloped fleet outsorcing in Brazil
•New competitors entering the market (rental car or
•Upcoming mega events in Brazil
fleet management)
•Positive outlook for Brazilian business and tourism
•Increasing fuel price
Localiza’s brand is top of mind in Brazil.
Localiza doesn’t see it as a weakness or a threat
41
42. Agenda
1. Company overview
2. Main business divisions
Car rental
Fleet rental
Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
Brazil – Macroeconomic scenario
Earnings release 3Q12
42
43. Free cash flow - FCF
Free cash flow - R$ million 2006 2007 2008 2009 2010 2011 9M12
EBITDA 311.3 403.5 504.1 469.7 649.5 821.3 649.3
Used car sales net revenues (588.8) (850.5) (980.8) (922.4) (1,321.9) (1,468.1) (1,157.3)
Depreciated cost of used car sales (*) 530.4 760.0 874.5 855.1 1,203.2 1,328.6 1,038.3
(-) Income tax and social contribution (42.7) (63.4) (52.8) (49.0) (57.8) (83.0) (77.7)
Working capital variation (4.8) 13.3 (44.8) (11.5) 54.5 (83.9) 0.4
Cash provided before capex 205.4 262.9 300.2 341.9 527.5 514.9 453.0
Used car sales net revenues 588.8 850.5 980.8 922.4 1,321.9 1,468.1 1,100.1
Capex of car - renewal (643.3) (839.0) (1,035.4) (947.9) (1,370.1) (1,504.5) (1,124.4)
Net capex for renewal (54.5) 11.5 (54.6) (25.5) (48.2) (36.4) (24.3)
Fleet renewal - quantity 23,174 30,093 34,281 34,519 47,285 50,772 40,759
Capex – other property and equipment (32.7) (23.7) (39.9) (21.0) (51.1) (63.0) (64.2)
Free cash flow before growth 118.2 250.7 205.7 295.4 428.2 415.5 364.5
Capex of car for fleet (growth) reduction (287.0) (221.9) (299.9) (241.1) (540.3) (272.0) 57.2
Change in accounts payable to car suppliers (capex) 222.0 (51.0) (188.9) 241.1 111.3 32.7 (206.0)
Net capex for fleet growth (65.0) (272.9) (488.8) 0.0 (429.0) (239.3) (148.8)
Fleet increase – quantity 10,346 7,957 9,930 8,642 18,649 9,178 (2,121)
Free cash flow after growth 53.2 (22.2) (283.1) 295.4 (0.8) 176.2 215.7
(*) Without technical discount deduction up to 2010 (see item 17 – Glossary, page 23) 43
44. Debt profile
R$ million
Debt profile as of 09/30/2012- principal
562.0
432.0
176.0 220.8 192.1
12.7 26.0 52.0
2012 2013 2014 2015 2016 2017 2018 2019
Cash
429.4
The Company is still presenting strong cash position and comfortable debt profile.
The “all in” debt cost was CDI + 107 bps.
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45. Debt - ratios
Net debt x Fleet value
2,446.7 2,681.7 2,447.1
1,752.6 1,907.8
1,492.9 1,363.4
1,247.7 1,254.5 1,281.1 1,326.1
1,078.6
765.1
440.4
2006 2007 2008 2009 2010 2011 Until set/12
Net debt Fleet value
Until
END OF PERIOD BALANCE 2006 2007 2008 2009 2010 2011 (**) Sep/12(**)
Net debt / Fleet value 36% 51% 72% 57% 52% 51% 54%
Net debt / EBITDA (*) 1.4x 1.9x 2.5x 2.3x 2.0x 1.7x 1.5x
Net debt / Equity 0.7x 1.3x 2.0x 1.5x 1.4x 1.2x 1.1x
EBITDA / Net financial expenses 4.8x 5.4x 3.8x 4.2x 5.0x 4.6x 6.0x
(*) annualized
(**) From January 1st 2011, consider financial statements in IFRS
Comfortable debt ratios.
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46. IR Team
Roberto Mendes Silvio Guerra Nora Lanari
CFO - RI RI RI
Website: www.localiza.com/ir E-mail: ri@localiza.com Phone: 55 31 3247-7024
Disclaimer
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. This presentation is strictly confidential and may not be disclosed to any other person. 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.
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. Any offering of securities to be made in
the United States will be made by means of an offering memorandum that may be obtained from any underwriters we may appoint in connection with an offering of securities in future.
Such offering memorandum will contain, or incorporate by reference, detailed information about LOCALIZA and its business and financial results, as well as its financial statements.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein
shall form the basis of any contract or commitment whatsoever.
46
