2. 1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 1Q16
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
03/31/2016 – Market cap of about
US$1.8 bi with ADTV of US$8.2
million
1973 1982 1983 2004 2005 2015
3
4. Company: integrated business platform
Synergies:
bargaining power
cost reduction
cross selling
14,037 cars
172 locations in Brazil
70 locations in South America
32 employees
47.3% sold to final consumer
78 stores
48 cities
995 employees
68,901 cars
+5.7 million clients
323 locations
4,719 employees
32,228 cars
859 clients
386 employees
Based on the 1Q16 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 April, 2016.
BBB- Fitch
Ba2 Moody’s
BB+ S&P
Baa1 Moody´s
BBB+ S&P
B1 Moody´s
B+ S&P
Ba3 Moody´s
BB- S&P
BB- Fitch
brAA+ S&P
Aa2.br Moody’s
AAA(bra) Fitch
brA+ S&P
A+ (bra) Fitch
brA S&P
A- (bra) Fitch
brAA- S&P
AA- (bra) Fitch
A(bra) Fitch
10
Investment grade: lower spreads and longer tenors
Source: Bloomberg and companies website
Raising
money Buying
cars
Renting Cars Selling
Cars
$
Localiza raises money with better conditions then its competitors.
11. 11
Competitive advantages: buying cars
Number of cars purchased – 2015
* Includes Franchising.
68,319 37,444
19,357 13,068
Localiza Movida Unidas Locamerica
*
Source: each company website and ANFAVEA
Localiza’s share in the internal sales of the
major OEMs - 2015
4.2%
Raising
money Buying
cars
Renting Cars Selling
Cars
$
Localiza buys cars with better conditions due to the volume of purchases.
7,600
75,919
Purchase antecipation of Dec/14
12. Raising
money Buying
cars
Renting Cars Selling
Cars
361
134
67
94
Localiza Unidas Hertz Movida
12
Competitive advantages: renting cars
Brand Brazilian distribution
#ofbranches#ofcities
Source: Each company website on 04/28/2016, 1Q16 Earnings Release for Localiza and 4Q15 Earnings Release for Movida, Unidas and Hertz
452
100
196
156
Localiza Competitors
495
$
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. “In a scale from 0 (zero) to 10, how much would you recommend Localiza to a friend or
colleague?”
Competitive advantages: Client satisfaction
80.7%
*Range of Net Promoter Scores (NPS) Across Industries in USA
*Source:Temkin Group Q3 2015 Consumer benchmark Survey
% of Promoters % de Detractors
Score between 9 and 10 = 85.6% Score between 0 and 6 = 4.6%
YTD December/2015
Satisfaction Index: NPS – Net Promoter Score
Localiza: 1st place in the category
Car rental.
14
Raising
money Buying
cars
Renting Cars Selling
Cars
$
Low High
NPS Avg. NPS
As of December, 2015.
15. 15
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.
16. Raising
money Buying
cars
Renting Cars Selling
Cars
16
Sales to final consumer
Competitive advantages: selling cars
Buffer: additional fleet during
peaks of demand
Information/mobility:
Ipad for Salesmen
• Support sale
• Access to the database
• Customer registration
• Agility in car sales
$
Sales center: 20k incoming calls per month with 55% visits to stores scheduled.
Distribution channel: 200 cities and 1,900 customers.
17. 17
ROIC versus cost of debt after taxes
The Company presented a positive spread of 5.7p.p.
despite the adverse scenario and a significant increase in the interest rate
7.3%
8.6%
6.3% 6.0%
8.0%
9.5% 10.2%
16.9% 17.1%
16.1% 16.5%
17.5% 17.0%
15.9%
2010 2011 2012 2013 2014 2015 1Q16
ROIC
Cost of debt
after taxes
9.6p.p. 8.5p.p. 9.5p.p.
9.8p.p. 10.5p.p.
7.5p.p.
5.7p.p.
2010 to 2014 ROIC considered income tax rate of 30.0%
2015 and 1Q16 ROIC considered income tax rate of 24.5%
Annualized
18. Localiza vs. players
Profitability
Source: Companies’ Financial Statements
18
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
19. 19
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
20. 20
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 1Q16
Agenda
22. 22
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$) Daily rental price over minimum salary (%)
Car rental affordability
Source: IPEADATA and Localiza’s loyalty program.
6 million
84 million
Adult population
(age > 20 years)
Class A+B+C
15 million
Adult population
(age > 20 years)
Class A+B
Increasing affordability and low penetration in leisure trips brings growth opportunities.
23. 23
Drivers
# domestic air traffic passengers
In million
Infrastructure investment prospects 2015-2018
(in US$ billion)
Source: BNDES June, 2015.
70
82
89 90 96
122
2010 2011 2012 2013 2014 2017E
Source: ANAC
2017 estimates: BOEING
89.4
57.9
27.2
21.3
17.0
16.6
12.3
6.8
Energy
Telecoms
Highways
Urban Mobility
Ports
Sanitation
Railways
Airports
The strong pipeline of investments tend to benefit
the corporate segment.
Air traffic growth supporting demand at the airports.
24. 24
Source: RAIS, each company’s website on 04/28/2016 and Localiza´s 1Q16 Earnings Release
Airport locations Off-airport locations
Car Rental Locations in Brazil
Off-airport market is still fragmented.
25. 25
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
20.4%
2.4%
6.0%
9.9%
49.9%
11.4%
Movida
37.1k
Unidas
22.6k
Others
187.2k
22.8%New data
basis
42.9k
76.8k
8.8k
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.
26. 26
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 1Q16
Agenda
27. 27
Number of clients
Fleet Rental overview
Compact cars
34.9%
Others 65.1%
2015 Fleet composition
33,948 cars
729 760 798 849 859
2012 2013 2014 2015 1Q16
End of period fleet
32,104 32,809 34,312 33,948 32,228
2012 2013 2014 2015 1Q16
28. 28
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.
29. Market Share – Fleet Rental 2015
29
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% 20.8k
4.3%
16.3k
3.4%
23.8k
5.0%
31.2k
6.5%
314.7k
65.9%
37.1k
7.8%
Movida
Unidas
Others
Ouro
Verde
Locamerica
New data
basis
30. 30
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 1Q16
Agenda
31. 31
# of points of sale
Car sales – operating data
55
66
73 74 75
77 78
2010 2011 2012 2013 2014 2015 1Q16
47,285 50,772
56,664
62,641
70,621
64,305
16,348
2010 2011 2012 2013 2014 2015 1Q16
# Number of cars sold (quantity)
Efficiency gain on car sales.
32. 32
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
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$) Minimum wages to buy a new car
33. 8.4 8.9
9.0 9.4
10.1 9.9
3.3 3.5 3.6 3.6 3.3
2.5
33
2.5x
2.5x
2010 2011 2012 2013 2014 2015
2.6x
Brazilian car market:
new x used car market and affordability
New cars
Used cars
Source: FENABRAVE (light and commercial cars)
2.6x 3.1x 4.0x
In million of cars
Total market of 12.4 million cars.
34. 34
2014 Up to 2 years
442,257
2015 Brand new
2,476,9042015 Used cars
9,987,711
0.6% 2.6% 16.0%
Car sales – operating data
Source: Anfavea and Fenabrave
Unidas, Locamerrica and Movida websites
Examples • Retailers • Dealers • Rental operators • “Auto malls”
Points of sale • 48,000 (Fenauto) • 4,364 (Anfavea)
• +78 (Unidas, Movida,
Locamerica)
• 71 (Fenauto)
Main players
35. 35
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Financials
Appendix: Earnings release 1Q16
Agenda
43. 1,175.3 1,450.0 1,646.7 1,758.9 1,874.0 1,883.1
463.1 502.4
1,321.9
1,468.1 1,520.0 1,747.3
2,018.2 2,044.9
543.9 544.6
2,497.2
2,918.1 3,166.7
3,506.2
3,892.2 3,928.0
1,007.0 1,047.0
2010 2011 2012 2013 2014 2015 1Q15 1Q16
43
Consolidated net revenues
R$ million
Rental Used car sales
Good level of sales with 6.8% increase in average car sales price
in 1Q16 x 1Q15
17,449
16,071 15,738
15,047
16,348
1Q15 2Q15 3Q15 4Q15 1Q16
# Cars sold
31.22 31.10
31.98
33.23 33.34
1Q15 2Q15 3Q15 4Q15 1Q16
Average price of cars sold
44. 44
Consolidated EBITDA
R$ million
649.5
821.3 875.6 916.5 969.8 934.8
245.0 258.4
2010 2011 2012 2013 2014 2015 1Q15 1Q16
(*)From 2012 on, 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 1Q15 1Q16
Car Rental 45.3% 46.9% 40.9% 36.8% 38.7% 31.8% 34.4% 34.5%
Fleet Rental 68.0% 68.6% 66.4% 65.5% 60.0% 62.2% 59.3% 64.5%
Rental Consolidated 52.3% 53.8% 49.3% 46.5% 45.3% 41.7% 42.5% 44.1%
Used Car Sales 2.6% 2.8% 4.2% 5.7% 6.0% 7.3% 8.8% 6.8%
EBITDA increased R$13.4 million in the 1Q16 x 1Q15
45. 45
Average depreciation per car (in R$)
Car Rental
Higher depreciation reflects the expectation of lower new car prices increases
1,536 1,684
1,896 1,452 1,270
622
836
2010 2011 2012 2013 2014 2015 1Q16
2,076
IPI Effect
3,972
*
* Annualized
3,510
4,133
4,311
4,592
4,202 3,935 4,175
2010 2011 2012 2013 2014 2015 1Q16
1.097
Efeito IPI
5.408
*
* Annualized
Fleet Rental
46. 46
*2012 EBIT was impacted by R$144.5 million of additional depreciation related to IPI (sales tax) reduction.
Consolidated EBIT
R$ million
Divisions 2010 2011 2012 2013 2014 2015 1Q15 1Q16
Car Rental 38.5% 38.8% 23.7% 32.8% 36.2% 34.3% 38.7% 35.6%
Fleet Rental 46.2% 45.6% 36.9% 45.1% 44.3% 48.9% 43.3% 50.3%
Consolidated 41.0% 41.1% 28.3% 37.1% 38.8% 39.1% 40.2% 40.3%
EBIT grew R$16.2 million in 1Q16 x 1Q15
482.1
595.7
465.8
652.1
726.7 735.5
186.3 202.5
2010 2011 2012 2013 2014 2015 1Q15 1Q16
610.3*
47. 250.5
291.6
240.9
384.3 410.6 402.4
100.3 103.0
2010 2011 2012 2013 2014 2015 1Q15 1Q16
47
* Pro forma 2012 net income excluding additional depreciation related to the IPI tax reduction, net of income tax.
Consolidated net income
R$ million
336.3*
Reconciliation EBITDA x Net income 2010 2011 2012 2013 2014 2015 1Q15 1Q16 Var. R$ Var. %
Consolidated EBITDA 649.5 821.3 875.6 916.5 969.8 934.8 245.0 258.4 13.4 5.5%
Cars depreciation (146.3) (201.5) (232.4) (229.0) (207.4) (163.6) (49.9) (46.3) 3.6 -7.2%
Cars additional depreciation – IPI effect - - (144.5) - - - - - - -
Other property depreciation and amortization (21.1) (24.1) (32.9) (35.4) (35.7) (35.7) (8.8) (9.6) (0.8) 9.1%
Financial expenses, net (130.1) (179.0) (138.7) (110.6) (151.1) (202.7) (48.0) (67.7) (19.7) 41.0%
Income tax and social contribution (101.5) (125.1) (135.3) (157.2) (165.0) (130.4) (38.0) (31.8) 6.2 -16.3%
Income tax and social contribution – IPI effect - - 49.1 - - - - - - -
Net income of the period 250.5 291.6 240.9 384.3 410.6 402.4 100.3 103.0 2.7 2.7%
Net income increased 2.7% despite the R$19.7 million increase in financial expenses
48. 48
Free cash flow - FCF
Free cash flow - R$ million 2010 2011 2012 2013 2014 2015 1Q16
Operations EBITDA 649.5 821.3 875.6 916.5 969.8 934.8 258.4
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) (544.6)
Depreciated cost of cars sold (*) 1,203.2 1,328.6 1,360.2 1,543.8 1,777.0 1,769.1 477.3
(-) Income tax and social contribution (57.8) (83.0) (100.9) (108.5) (113.1) (110.7) (28.8)
Change in working capital 54.5 (83.9) 37.1 2.9 (27.1) (30.0) (8.8)
Cash generated by rental operations 527.5 514.9 652.0 607.4 588.4 518.3 153.5
Capex-
Renewals
Used car sale revenue, net from taxes 1,321.9 1,468.1 1,520.0 1,747.3 2,018.2 2,036.3 232.8
Fleet renewal investment (1,370.1) (1,504.5) (1,563.3) (1,819.7) (2,197.7) (2,278.4) (255.2)
Net investment for fleet renewal (48.2) (36.4) (43.3) (72.4) (179.5) (242.1) (22.4)
Fleet renewal – quantity 47,285 50,772 56,644 62,641 70,621 64,032 6,989
Investment, other property and intangibles investments (50.6) (59.9) (77.8) (47.5) (46.3) (29.7) (5.0)
Free cash flow from operations, net of fleet renewal capex 428.7 418.6 530.9 487.5 362.6 246.5 126.1
Capex-Growth
Fleet growth (investment) (540.3) (272.0) (55.5) (209.4) (286.8) 8.6 311.8
Change in accounts payable to car suppliers 111.3 32.7 (116.9) 89.7 334.4 (121.2) (255.6)
Fleet growth (429.0) (239.3) (172.4) (119.7) 47.6 (112.6) 56.2
Fleet increase / (reduction) – quantity 18,649 9,178 2,011 7,103 9,183 (273) (9,359)
Free cash flow after growth, and before interest and new HQ (0.3) 179.3 358.5 367.8 410.2 133.9 182.3
Capex–
HQ
Investment in the construction of the new HQ (0.5) (3.1) (2.4) (6.5) (55.7) (123.3) (3.6)
Marketable securities – new HQ - - - - (92.6) 92.6 -
New headquarters construction (0.5) (3.1) (2.4) (6.5) (148.3) (30.7) (3.6)
Free cash flow before interest (0.8) 176.2 356.1 361.3 261.9 103.2 178.7
Free cash flow
(*) without the technical discounts reduction up to 2010
49. 49
(1,510.8)
Net debt
03/31/2016
Free cash flow
before growth, interest and
headquarters
126.1
(1,588.6)
Net debt
12/31/2015
(33.2)
Dividends
(3.6)
New
headquarters
construction
(67.7)
Interest
Changes in net debt
R$ million
Reduction of R$77.8 million in net debt due to cash generation
Fleet
reduction
311.8
(255.6)
Change in
accounts
payable to
cars suppliers
+58.4 +56.2 (36.8)
50. 50
Debt maturity profile (principal)
R$ million
Comfortable debt profile and strong cash position
As of March 31, 2016
264.1
468.6
252.6
619.5
770.0
672.5
2016 2017 2018 2019 2020 2021
Cash
1,610.8
2016
1,604.8
51. 51
Debt - ratios
Net debt vs. Fleet value
BALANCE AT THE END OF PERIOD 2010(*) 2011 2012 2013 2014 2015 1Q16
Net debt / Fleet value 52% 51% 48% 48% 40% 44% 45%
Net debt / EBITDA(**) 2.0x 1.7x 1.4x 1.5x 1.4x 1.7x 1.5x
Net debt / Equity 1.4x 1.2x 0.9x 1.0x 0.8x 0.8x 0.8x
EBITDA / Net financial expenses 5.0x 4.6x 6.3x 8.3x 6.4x 4.6x 3.8x
(*) 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 1,510.8
2,446.7
2,681.7 2,547.6
2,797.9
3,296.3 3,642.7 3,372.2
2010 2011 2012 2013 2014 2015 1Q16
52. 52
ROIC versus cost of debt after taxes
The Company presented a positive spread of 5.7p.p.
despite the adverse scenario and a significant increase in the interest rate
7.3%
8.6%
6.3% 6.0%
8.0%
9.5% 10.2%
16.9% 17.1%
16.1% 16.5%
17.5% 17.0%
15.9%
2010 2011 2012 2013 2014 2015 1Q16
ROIC
Cost of debt
after taxes
9.6p.p. 8.5p.p. 9.5p.p.
9.8p.p. 10.5p.p.
7.5p.p.
5.7p.p.
2010 to 2014 ROIC considered income tax rate of 30.0%
2015 and 1Q16 ROIC considered income tax rate of 24.5%
Annualized
53. 53
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
54. 54
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