Localiza Rent a Car S.A. operates an integrated business platform in the car rental industry in Brazil with over 39,000 vehicles, 1.6 million clients, and over 2,500 employees. The presentation discusses the company's competitive advantages, growth opportunities from consolidation in the fragmented off-airport market, elasticity to GDP growth, and increasing credit card usage. It also provides a breakdown of the company's revenues and EBITDA by division for 2008, showing the car rental division as the main contributor.
Localiza Rent a Car S.A. 2Q09 and 1H09 Results
Localiza is a car rental company operating in Brazil and South America with an integrated business platform. In 2Q09:
- Car rental revenues grew 4.8% year-over-year to R$140.8 million despite a challenging environment.
- Fleet rental revenues increased 15.5% to R$76.2 million due to higher volumes and prices.
- The company maintains a large rental fleet of over 41,000 cars across its integrated operations in Brazil and internationally, leveraging synergies across its business divisions.
Conferencesand Non Deal Roadshow October2008Localiza
The document is Localiza Rent a Car's 3Q08 results presentation. It summarizes Localiza's integrated business platform, growth opportunities through GDP growth, market consolidation, and expanding airport and off-airport markets. It highlights Localiza's competitive advantages of scale, distribution network, used car sales expertise, and lower depreciation costs. The presentation shows Localiza growing revenues and market share while maintaining profitability, with 38% revenue growth in 3Q08.
Non Deal Roadshow Localiza Goldman Sachs(InglêS)Localiza
Localiza Rent a Car S.A. is a leading car rental company in Brazil with over 1.2 million clients. It has an integrated business platform with divisions in car rental, fleet rental, used car sales, and franchising. Localiza has a competitive advantage through its large scale and integrated platform which provides synergies in costs, cross-selling, and bargaining power. It has the largest distribution network in Brazil with 351 agencies across 9 countries.
ConferêNciase Non Deal Roadshow Maio2008(InglêS)Localiza
Localiza is Brazil's largest car rental company with an integrated business platform including car rentals, fleet rentals, used car sales, and franchising. The document discusses Localiza's growth opportunities through increasing GDP elasticity, growth in air traffic and credit card usage, the replacement car market, and industry consolidation. It also outlines Localiza's competitive advantages like its large nationwide presence, strong brand, integrated business model, and relationships with automakers. Financial highlights show Localiza growing revenues and profits consistently above GDP growth.
1. The document provides an overview of a car rental company including its business divisions, milestones, integrated business platform, and financial cycle.
2. The company has three main business divisions: car rental, fleet rental, and used car sales (Seminovos).
3. The financial cycle shows that the company acquires cars, rents them out for 1-2 years through its divisions, then sells the used cars through Seminovos, generating a profit each year.
Roadshow Deutsche Bank 15ªConferêNcia Anual Citibank Latam(InglêS)Localiza
Localiza Rent a Car S.A. presented its 2006 results and growth opportunities. Some key highlights:
- Localiza has an integrated business platform with 145 agencies, 15,265 cars, and 1,688 employees, giving it superior performance.
- Growth opportunities include increasing market share in core businesses, expanding in Brazil and South America, and taking advantage of synergies across the platform.
- The company has competitive advantages like its large distribution network, yield management, lower cost of credit, and bargaining power from large fleet purchases.
- In 2006, revenues grew 29% to R$1.145 billion while EBITDA rose 13% to R$313 million, demonstrating strong financial
Apresentação institucional eng (pp tminimizer)Localiza
Localiza is the largest car rental company in Brazil with over 60,000 vehicles. It has three main divisions: car rental, fleet rental, and used car sales. The company has grown organically and through acquisitions since 1973. It went public in 2005 and has an integrated business platform with synergies across divisions. Localiza holds a leading market share position and benefits from growth in business and leisure air travel in Brazil.
Localiza Rent a Car S.A. saw significant increases in key metrics in the first quarter of 2006 compared to the same period last year. Car rental business volume increased 42.6% and fleet rental business volume grew 31.8%. EBITDA for car rentals excluding used car sales rose 23.2% and fleet rental EBITDA excluding used car sales increased 37.3%. The company also saw a 2.2 percentage point rise in car rental business utilization rate. Trading volume for the company's stock increased 68.6% in the first quarter of 2006.
Localiza Rent a Car S.A. 2Q09 and 1H09 Results
Localiza is a car rental company operating in Brazil and South America with an integrated business platform. In 2Q09:
- Car rental revenues grew 4.8% year-over-year to R$140.8 million despite a challenging environment.
- Fleet rental revenues increased 15.5% to R$76.2 million due to higher volumes and prices.
- The company maintains a large rental fleet of over 41,000 cars across its integrated operations in Brazil and internationally, leveraging synergies across its business divisions.
Conferencesand Non Deal Roadshow October2008Localiza
The document is Localiza Rent a Car's 3Q08 results presentation. It summarizes Localiza's integrated business platform, growth opportunities through GDP growth, market consolidation, and expanding airport and off-airport markets. It highlights Localiza's competitive advantages of scale, distribution network, used car sales expertise, and lower depreciation costs. The presentation shows Localiza growing revenues and market share while maintaining profitability, with 38% revenue growth in 3Q08.
Non Deal Roadshow Localiza Goldman Sachs(InglêS)Localiza
Localiza Rent a Car S.A. is a leading car rental company in Brazil with over 1.2 million clients. It has an integrated business platform with divisions in car rental, fleet rental, used car sales, and franchising. Localiza has a competitive advantage through its large scale and integrated platform which provides synergies in costs, cross-selling, and bargaining power. It has the largest distribution network in Brazil with 351 agencies across 9 countries.
ConferêNciase Non Deal Roadshow Maio2008(InglêS)Localiza
Localiza is Brazil's largest car rental company with an integrated business platform including car rentals, fleet rentals, used car sales, and franchising. The document discusses Localiza's growth opportunities through increasing GDP elasticity, growth in air traffic and credit card usage, the replacement car market, and industry consolidation. It also outlines Localiza's competitive advantages like its large nationwide presence, strong brand, integrated business model, and relationships with automakers. Financial highlights show Localiza growing revenues and profits consistently above GDP growth.
1. The document provides an overview of a car rental company including its business divisions, milestones, integrated business platform, and financial cycle.
2. The company has three main business divisions: car rental, fleet rental, and used car sales (Seminovos).
3. The financial cycle shows that the company acquires cars, rents them out for 1-2 years through its divisions, then sells the used cars through Seminovos, generating a profit each year.
Roadshow Deutsche Bank 15ªConferêNcia Anual Citibank Latam(InglêS)Localiza
Localiza Rent a Car S.A. presented its 2006 results and growth opportunities. Some key highlights:
- Localiza has an integrated business platform with 145 agencies, 15,265 cars, and 1,688 employees, giving it superior performance.
- Growth opportunities include increasing market share in core businesses, expanding in Brazil and South America, and taking advantage of synergies across the platform.
- The company has competitive advantages like its large distribution network, yield management, lower cost of credit, and bargaining power from large fleet purchases.
- In 2006, revenues grew 29% to R$1.145 billion while EBITDA rose 13% to R$313 million, demonstrating strong financial
Apresentação institucional eng (pp tminimizer)Localiza
Localiza is the largest car rental company in Brazil with over 60,000 vehicles. It has three main divisions: car rental, fleet rental, and used car sales. The company has grown organically and through acquisitions since 1973. It went public in 2005 and has an integrated business platform with synergies across divisions. Localiza holds a leading market share position and benefits from growth in business and leisure air travel in Brazil.
Localiza Rent a Car S.A. saw significant increases in key metrics in the first quarter of 2006 compared to the same period last year. Car rental business volume increased 42.6% and fleet rental business volume grew 31.8%. EBITDA for car rentals excluding used car sales rose 23.2% and fleet rental EBITDA excluding used car sales increased 37.3%. The company also saw a 2.2 percentage point rise in car rental business utilization rate. Trading volume for the company's stock increased 68.6% in the first quarter of 2006.
1. The document provides an overview and agenda for a company meeting covering the company's business divisions, consolidated financials, debt and cash position, and key value drivers.
2. The main business divisions of the company are car rental, fleet rental, and used car sales. Car rental is the traditional backbone of the company and forms the foundation for scale benefits.
3. Over decades, the company has successfully competed against major global players in Brazil through strong local scale and presence, holding an extraordinarily dominant position in the Brazilian car rental market.
Localiza is the largest car rental company in Brazil, operating car rental, fleet rental, and used car sales divisions. Over its nearly 40 years in business, Localiza has grown organically and through acquisitions to become the market leader in Brazil with over 60,000 vehicles and a presence in over 450 locations across the country. The company benefits from scale advantages in purchasing vehicles, strong brand recognition, and distribution network that allows it to generate higher profitability than competitors.
Localiza is the largest car rental company in Brazil, operating car rental, fleet rental, and used car sales divisions. Over its 39 years in business, Localiza has established competitive advantages through its scale in Brazil, experience managing a large fleet of vehicles, and integrated business model. The document reviews Localiza's history, business segments, financial performance, and competitive position in the Brazilian car rental market.
Localiza Rent a Car reported strong growth in the first quarter of 2006. Car rental business volume increased 42.6% and fleet rental business volume grew 31.8%. EBITDA margins decreased slightly for car rentals but increased for fleet rentals. For the full year, the company expects car rental business volume to increase 25% and fleet rental volume to grow 15%, with EBITDA margins of 45% for car rentals and 70% for fleet rentals, excluding used car sales. Localiza believes its integrated business platform and expansion in Brazil and Latin America will continue to generate synergies and support future growth opportunities.
This document provides an overview of Localiza's car rental business. Localiza has grown to become the largest car rental company in Brazil, with a 36.5% market share. It has a fleet of over 64,000 vehicles and operates out of 476 locations across 329 cities in Brazil. Localiza has achieved this leading position through decades of successful competition against major global players by leveraging its large local scale. The off-airport car rental market in Brazil remains fragmented, providing opportunities for further growth. Localiza's integrated business platform and competitive advantages around purchasing power, distribution network, and operational experience have enabled it to consistently outperform competitors and generate strong financial results.
1. The document provides an overview of a company including its business divisions of car rental, fleet rental, and used car sales.
2. It discusses the company's history and growth through three phases from founding to becoming a large scale operation.
3. Financial details are given showing the integrated business platform and annual financial cycle for fleet rental and used car sales divisions.
Group 1 Automotive is a top five U.S. automotive dealer group with over 170,000 vehicle sales in 2008 and $4.3 billion in annual revenue. In the first quarter of 2009, revenues decreased 32.2% to $1.02 billion compared to $1.5 billion in the first quarter of 2008. Parts and service generates 70% of gross profits and covers 75-85% of fixed costs. The company expects to dispose of some dealerships that do not provide acceptable returns in 2009 but does not plan additional acquisitions.
Localiza Rent a Car S.A. held a public meeting to discuss the company's performance in 2Q06 and outlook. Key points include:
1) The car rental market saw strong growth, with Localiza's car rental business volume increasing 43.3% and fleet rental increasing 33.7%.
2) Localiza achieved a 63.7% increase in car rental EBITDA and 44.5% increase in fleet rental EBITDA, excluding used cars.
3) The company is well positioned for future growth, with competitive advantages from scale, brand strength, and an integrated business platform. Localiza will focus on organic growth and consolidation opportunities to increase business volume.
Amara Raja Batteries-Management Meet NoteAngel Broking
- Management indicated strong demand for batteries from the growing automobile industry and pickup in industrial activities.
- The company plans capacity expansions to meet increasing demand and expects to clock 15% CAGR in industrial batteries over the next few years.
- While demand from telecom batteries has contracted, the company expects 6-7% annual growth and is optimistic about long-term replacement demand.
Localiza is the largest car rental company in South America with over 460 locations across 7 countries. It has a fleet of over 100,000 cars and flexible business models. Some key points:
- Localiza has a 37.5% market share in car rentals and 12.5% in fleet rentals in Brazil.
- It has proven track records of growth and profitability, with revenues growing at a 16.5% CAGR over the last 6 years and EBITDA growing at 25% annually in that period.
- Localiza has benefited from increasing GDP per capita and minimum wages in Brazil, which has improved car rental affordability and driven higher consumption.
This document summarizes a presentation given by Phil Martens, President of Light Vehicle Systems at ArvinMeritor, and Jim Donlon, Senior Vice President and CFO of ArvinMeritor, at the Morgan Stanley Global Automotive Conference. The presentation provides an overview of Light Vehicle Systems, its performance and margins, strategies for improving performance through initiatives like Performance Plus, new product development focusing on smart systems and expanding engineering capabilities, and a strategy for growth in Asia.
Localiza Rent a Car S.A. is an integrated car rental platform operating in Brazil and other South American countries. It has over 1.2 million clients and operates through 172 agencies and 28,080 vehicles. The document discusses Localiza's competitive advantages including its integrated business model, large distribution network, yield management strategies, and ability to reduce depreciation costs. It also analyzes growth opportunities in the car rental market from GDP growth, increased air travel, expansion of credit cards, and consolidation in the industry. Financial highlights show Localiza has strong profit margins from its car rental and fleet rental divisions.
Conferências e Non-deal Roadshow - Outubro 2008 (inglês)Localiza
This document outlines Localiza Rent a Car's 3Q08 results presentation. It discusses the company's integrated business platform, growth opportunities through GDP elasticity, industry consolidation, and the airport and off-airport car rental markets. It also covers Localiza's competitive advantages which include its scale, brand, technology leadership and young fleet.
Conferences and Non-deal Roadshow - October 2008Localiza
This document outlines Localiza Rent a Car's 3Q08 results presentation. It discusses Localiza's integrated business platform operating across multiple divisions, the growth opportunities in Brazil's car rental market through consolidation, increasing air traffic and GDP growth, and Localiza's competitive advantages of its large scale, synergies across divisions, and focus on growth with profitability. The presentation also reviews the company's strategies and 3Q financial results.
Localiza is an integrated car rental platform operating in Brazil and other South American countries with over 1.2 million clients. It has several divisions including car rental, used car sales, fleet management, and franchising. Localiza has a large integrated network with over 1,800 employees and 24,000 vehicles. The document outlines Localiza's strategy, performance by division, and growth opportunities through consolidation, increasing air traffic, credit card usage, fleet outsourcing, and capturing the replacement market. Localiza is well positioned for continued growth.
Localiza has an integrated business platform across its car rental, fleet rental, used car sales, and franchising divisions that provides synergies. It is well positioned to capture growth opportunities from Brazil's increasing GDP and air traffic, expansion of credit card usage, the replacement car rental market, and potential in fleet outsourcing. The document discusses these opportunities and Localiza's market leading position in each of its divisions to generate continued revenue and profit growth.
Conferências e Non-deal Roadshow - Maio 2008 (inglês)Localiza
Localiza is an integrated car rental company operating in Brazil and internationally. It has an integrated business platform with over 50,000 vehicles and 178 agencies. The document discusses Localiza's growth opportunities through expanding in emerging markets, increasing market share in Brazil through consolidation, and leveraging opportunities in fleet outsourcing and replacement markets. It outlines Localiza's competitive advantages including its large scale, integrated platform, and strong brand and relationships with automakers. Financial highlights show continued growth and profitability with revenues increasing over 16% annually and earnings growing 27% in the first quarter of 2008.
This document provides an overview of a car rental company including:
1. The company has over 480 branches across 8 countries in South America, is the largest car rental company in the region, and has a proven track record of growth and profitability.
2. The company has an integrated business platform with synergies across its divisions that provides flexibility and superior performance.
3. Financially, the company has stable one and two year cycles for its car rental and fleet rental divisions respectively that generate consistent profits through prudent asset management and pricing strategies.
1. The document provides an overview of Localiza, an integrated car rental and used car sales company in Brazil.
2. It discusses Localiza's financial performance, growth opportunities in the Brazilian market, and competitive advantages such as its integrated business platform and efficient financial cycle.
3. Key drivers of growth for Localiza's business include increasing GDP per capita and consumer spending in Brazil, investments in infrastructure, and trends toward outsourcing fleet management.
The document provides an overview of Localiza's car rental business. Localiza is the largest car rental company in Brazil, with a fleet of 65,086 cars and a presence in 474 locations across the country. It has built scale and brand recognition over 40 years of operations. Localiza has competitive advantages in its ability to purchase large volumes of cars at better prices, leverage its brand and distribution network, and sell used rental cars directly to consumers. While international competitors like Hertz and Avis have a larger airport presence, Localiza dominates the off-airport market in Brazil.
Deutsche Bank Roadshow - 15th Annual Latin America Conference CitibankLocaliza
- Localiza is an integrated car rental company operating in Brazil and other South American countries with 145 agencies and over 15,000 vehicles
- In 2006, the company had net revenues of R$1.145 billion, EBITDA of R$313 million, and net income of R$138.2 million
- Localiza has a large integrated platform that provides competitive advantages through economies of scale, bargaining power, and operational synergies
Deutsche Bank Roadshow 15th Annual Latin America Conference CitibankLocaliza
Localiza Rent a Car S.A. presented its 2006 results and growth opportunities. Some key highlights:
- Localiza has an integrated business platform with 145 agencies, 15,265 cars, and 1,688 employees, giving it superior performance.
- Growth opportunities include increasing market share in core businesses, expanding in Brazil and South America, and taking advantage of synergies across the platform.
- The company has competitive advantages like its large distribution network, yield management, lower cost of credit, and bargaining power from large fleet purchases.
- In 2006, revenues grew 29% to R$1.145 billion while EBITDA rose 13% to R$313 million, demonstrating strong financial
1. The document provides an overview and agenda for a company meeting covering the company's business divisions, consolidated financials, debt and cash position, and key value drivers.
2. The main business divisions of the company are car rental, fleet rental, and used car sales. Car rental is the traditional backbone of the company and forms the foundation for scale benefits.
3. Over decades, the company has successfully competed against major global players in Brazil through strong local scale and presence, holding an extraordinarily dominant position in the Brazilian car rental market.
Localiza is the largest car rental company in Brazil, operating car rental, fleet rental, and used car sales divisions. Over its nearly 40 years in business, Localiza has grown organically and through acquisitions to become the market leader in Brazil with over 60,000 vehicles and a presence in over 450 locations across the country. The company benefits from scale advantages in purchasing vehicles, strong brand recognition, and distribution network that allows it to generate higher profitability than competitors.
Localiza is the largest car rental company in Brazil, operating car rental, fleet rental, and used car sales divisions. Over its 39 years in business, Localiza has established competitive advantages through its scale in Brazil, experience managing a large fleet of vehicles, and integrated business model. The document reviews Localiza's history, business segments, financial performance, and competitive position in the Brazilian car rental market.
Localiza Rent a Car reported strong growth in the first quarter of 2006. Car rental business volume increased 42.6% and fleet rental business volume grew 31.8%. EBITDA margins decreased slightly for car rentals but increased for fleet rentals. For the full year, the company expects car rental business volume to increase 25% and fleet rental volume to grow 15%, with EBITDA margins of 45% for car rentals and 70% for fleet rentals, excluding used car sales. Localiza believes its integrated business platform and expansion in Brazil and Latin America will continue to generate synergies and support future growth opportunities.
This document provides an overview of Localiza's car rental business. Localiza has grown to become the largest car rental company in Brazil, with a 36.5% market share. It has a fleet of over 64,000 vehicles and operates out of 476 locations across 329 cities in Brazil. Localiza has achieved this leading position through decades of successful competition against major global players by leveraging its large local scale. The off-airport car rental market in Brazil remains fragmented, providing opportunities for further growth. Localiza's integrated business platform and competitive advantages around purchasing power, distribution network, and operational experience have enabled it to consistently outperform competitors and generate strong financial results.
1. The document provides an overview of a company including its business divisions of car rental, fleet rental, and used car sales.
2. It discusses the company's history and growth through three phases from founding to becoming a large scale operation.
3. Financial details are given showing the integrated business platform and annual financial cycle for fleet rental and used car sales divisions.
Group 1 Automotive is a top five U.S. automotive dealer group with over 170,000 vehicle sales in 2008 and $4.3 billion in annual revenue. In the first quarter of 2009, revenues decreased 32.2% to $1.02 billion compared to $1.5 billion in the first quarter of 2008. Parts and service generates 70% of gross profits and covers 75-85% of fixed costs. The company expects to dispose of some dealerships that do not provide acceptable returns in 2009 but does not plan additional acquisitions.
Localiza Rent a Car S.A. held a public meeting to discuss the company's performance in 2Q06 and outlook. Key points include:
1) The car rental market saw strong growth, with Localiza's car rental business volume increasing 43.3% and fleet rental increasing 33.7%.
2) Localiza achieved a 63.7% increase in car rental EBITDA and 44.5% increase in fleet rental EBITDA, excluding used cars.
3) The company is well positioned for future growth, with competitive advantages from scale, brand strength, and an integrated business platform. Localiza will focus on organic growth and consolidation opportunities to increase business volume.
Amara Raja Batteries-Management Meet NoteAngel Broking
- Management indicated strong demand for batteries from the growing automobile industry and pickup in industrial activities.
- The company plans capacity expansions to meet increasing demand and expects to clock 15% CAGR in industrial batteries over the next few years.
- While demand from telecom batteries has contracted, the company expects 6-7% annual growth and is optimistic about long-term replacement demand.
Localiza is the largest car rental company in South America with over 460 locations across 7 countries. It has a fleet of over 100,000 cars and flexible business models. Some key points:
- Localiza has a 37.5% market share in car rentals and 12.5% in fleet rentals in Brazil.
- It has proven track records of growth and profitability, with revenues growing at a 16.5% CAGR over the last 6 years and EBITDA growing at 25% annually in that period.
- Localiza has benefited from increasing GDP per capita and minimum wages in Brazil, which has improved car rental affordability and driven higher consumption.
This document summarizes a presentation given by Phil Martens, President of Light Vehicle Systems at ArvinMeritor, and Jim Donlon, Senior Vice President and CFO of ArvinMeritor, at the Morgan Stanley Global Automotive Conference. The presentation provides an overview of Light Vehicle Systems, its performance and margins, strategies for improving performance through initiatives like Performance Plus, new product development focusing on smart systems and expanding engineering capabilities, and a strategy for growth in Asia.
Localiza Rent a Car S.A. is an integrated car rental platform operating in Brazil and other South American countries. It has over 1.2 million clients and operates through 172 agencies and 28,080 vehicles. The document discusses Localiza's competitive advantages including its integrated business model, large distribution network, yield management strategies, and ability to reduce depreciation costs. It also analyzes growth opportunities in the car rental market from GDP growth, increased air travel, expansion of credit cards, and consolidation in the industry. Financial highlights show Localiza has strong profit margins from its car rental and fleet rental divisions.
Conferências e Non-deal Roadshow - Outubro 2008 (inglês)Localiza
This document outlines Localiza Rent a Car's 3Q08 results presentation. It discusses the company's integrated business platform, growth opportunities through GDP elasticity, industry consolidation, and the airport and off-airport car rental markets. It also covers Localiza's competitive advantages which include its scale, brand, technology leadership and young fleet.
Conferences and Non-deal Roadshow - October 2008Localiza
This document outlines Localiza Rent a Car's 3Q08 results presentation. It discusses Localiza's integrated business platform operating across multiple divisions, the growth opportunities in Brazil's car rental market through consolidation, increasing air traffic and GDP growth, and Localiza's competitive advantages of its large scale, synergies across divisions, and focus on growth with profitability. The presentation also reviews the company's strategies and 3Q financial results.
Localiza is an integrated car rental platform operating in Brazil and other South American countries with over 1.2 million clients. It has several divisions including car rental, used car sales, fleet management, and franchising. Localiza has a large integrated network with over 1,800 employees and 24,000 vehicles. The document outlines Localiza's strategy, performance by division, and growth opportunities through consolidation, increasing air traffic, credit card usage, fleet outsourcing, and capturing the replacement market. Localiza is well positioned for continued growth.
Localiza has an integrated business platform across its car rental, fleet rental, used car sales, and franchising divisions that provides synergies. It is well positioned to capture growth opportunities from Brazil's increasing GDP and air traffic, expansion of credit card usage, the replacement car rental market, and potential in fleet outsourcing. The document discusses these opportunities and Localiza's market leading position in each of its divisions to generate continued revenue and profit growth.
Conferências e Non-deal Roadshow - Maio 2008 (inglês)Localiza
Localiza is an integrated car rental company operating in Brazil and internationally. It has an integrated business platform with over 50,000 vehicles and 178 agencies. The document discusses Localiza's growth opportunities through expanding in emerging markets, increasing market share in Brazil through consolidation, and leveraging opportunities in fleet outsourcing and replacement markets. It outlines Localiza's competitive advantages including its large scale, integrated platform, and strong brand and relationships with automakers. Financial highlights show continued growth and profitability with revenues increasing over 16% annually and earnings growing 27% in the first quarter of 2008.
This document provides an overview of a car rental company including:
1. The company has over 480 branches across 8 countries in South America, is the largest car rental company in the region, and has a proven track record of growth and profitability.
2. The company has an integrated business platform with synergies across its divisions that provides flexibility and superior performance.
3. Financially, the company has stable one and two year cycles for its car rental and fleet rental divisions respectively that generate consistent profits through prudent asset management and pricing strategies.
1. The document provides an overview of Localiza, an integrated car rental and used car sales company in Brazil.
2. It discusses Localiza's financial performance, growth opportunities in the Brazilian market, and competitive advantages such as its integrated business platform and efficient financial cycle.
3. Key drivers of growth for Localiza's business include increasing GDP per capita and consumer spending in Brazil, investments in infrastructure, and trends toward outsourcing fleet management.
The document provides an overview of Localiza's car rental business. Localiza is the largest car rental company in Brazil, with a fleet of 65,086 cars and a presence in 474 locations across the country. It has built scale and brand recognition over 40 years of operations. Localiza has competitive advantages in its ability to purchase large volumes of cars at better prices, leverage its brand and distribution network, and sell used rental cars directly to consumers. While international competitors like Hertz and Avis have a larger airport presence, Localiza dominates the off-airport market in Brazil.
Deutsche Bank Roadshow - 15th Annual Latin America Conference CitibankLocaliza
- Localiza is an integrated car rental company operating in Brazil and other South American countries with 145 agencies and over 15,000 vehicles
- In 2006, the company had net revenues of R$1.145 billion, EBITDA of R$313 million, and net income of R$138.2 million
- Localiza has a large integrated platform that provides competitive advantages through economies of scale, bargaining power, and operational synergies
Deutsche Bank Roadshow 15th Annual Latin America Conference CitibankLocaliza
Localiza Rent a Car S.A. presented its 2006 results and growth opportunities. Some key highlights:
- Localiza has an integrated business platform with 145 agencies, 15,265 cars, and 1,688 employees, giving it superior performance.
- Growth opportunities include increasing market share in core businesses, expanding in Brazil and South America, and taking advantage of synergies across the platform.
- The company has competitive advantages like its large distribution network, yield management, lower cost of credit, and bargaining power from large fleet purchases.
- In 2006, revenues grew 29% to R$1.145 billion while EBITDA rose 13% to R$313 million, demonstrating strong financial
- Localiza reported a 42.6% increase in car rental business volume and a 31.8% increase in fleet rental business volume in 1Q06 compared to 1Q05.
- EBITDA margins decreased for the car rental business to 48.5% in 1Q06 from 53.7% in 1Q05, but increased for the fleet rental business to 49.9% in 1Q06 from 44.9% in 1Q05.
- Net income increased 13.9% to R$29.6 million in 1Q06 from R$26 million in 1Q05, driven by revenue growth partially offset by higher costs and expenses.
Localiza Rent a Car S.A. presented its 3Q06 results, highlighting:
1) 62.8% growth in net income, with increases in car rental, fleet rental, and used car sales volumes.
2) Improvements in key metrics like car rental utilization rate and EBITDA margins across segments.
3) An integrated business platform operating across Brazil with plans to leverage opportunities for organic growth and market consolidation to further expand volumes and achieve scale gains.
This document provides an overview of a company's integrated business platform, financial performance, growth track record, management structure, and strategy. Key points include:
1) The company operates in the car rental and sales industry with over 4,000 employees across hundreds of locations in Brazil and South America.
2) Financially, the car rental division generates higher margins than the used car sales division on an annual cycle, while fleet rental generates higher margins than used car sales on a two-year cycle.
3) Over the past decade the company has achieved strong and consistent revenue and profitability growth through expanding its operations, pricing strategy, and managing its assets efficiently.
Localiza Rent a Car S.A. reported strong growth in the first quarter of 2006. Key highlights include a 42.6% increase in car rental business volume and a 31.8% increase in fleet rental business volume. EBITDA for car rentals increased 23.2% excluding used car sales, while fleet rental EBITDA rose 37.3% excluding used car sales. The company's stock price, RENT3, increased 68.6% in the quarter. Localiza aims to continue expanding its integrated business platform in Brazil and Latin America to further increase market share and profitability.
Localiza Rent a Car S.A. held a public meeting to discuss their 2Q06 results. Key highlights included 43.3% growth in car rental business volume and 33.7% growth in fleet rental business volume. EBITDA increased 63.7% for car rentals and 44.5% for fleet rentals compared to the prior year. Localiza also achieved several awards and rankings recognizing their financial performance and operations. The presentation outlined Localiza's competitive advantages and strategies to continue profitable growth through expanding organically and leveraging consolidation opportunities in the industry.
Localiza Rent a Car S.A. presented its 3Q06 results, highlighting significant growth. Key points include:
- 62.8% growth in net income and increases in car rental business volume of 40.5% and fleet rental volume of 23.2%.
- Expansion of integrated business platform to 133 agencies, 14,250 cars, and presence in 8 countries.
- Strategies focus on organic growth, market consolidation, and scale gains to expand business volume and achieve long-term profitable growth.
This document provides a summary of Localiza Rent a Car S.A.'s third quarter 2006 results presentation. It highlights the company's integrated business platform with 133 agencies and over 23,000 vehicles. The summary also notes the company's 62.8% increase in net income, 71.8% car rental utilization rate, and strategies to achieve organic growth and scale gains. The presentation concludes with a disclaimer regarding the forward-looking projections and estimates provided.
This document provides an overview of a company's integrated business platform for car rentals and sales. It summarizes the company's operations, competitive advantages, financial performance, and growth track record. Key details include the company operating over 200 rental locations in Brazil and South America, with over 4,000 employees. The financial section shows the one-year and two-year rental cycles and margins achieved from rental and used car sales. The company aims to profit from managing its fleet of rental cars as assets. Finally, the summary highlights the company's stable management team and consistent revenue growth averaging 15.9% annually over the past decade.
This document summarizes the business of Localiza, an integrated vehicle rental company in Brazil. It outlines Localiza's competitive advantages including its large scale, network of locations, and synergies across business units. The document also reviews Localiza's financial performance, showing consistent growth and profitability above industry levels. It identifies opportunities for further expansion through organic growth and industry consolidation. Brazil's improving macroeconomic conditions and trends of increasing consumption and investment are expected to drive continued growth in the vehicle rental market.
Localiza is a Brazilian car rental company founded in 1973. It has grown to become the market leader through strategic acquisitions and expanding into new business divisions over time, including fleet rental, used car sales, and franchising. It has an integrated business platform with synergies across divisions. Localiza has several competitive advantages including its scale in purchasing cars, brand recognition, distribution network, and operational excellence. It aims to continue its strategy of innovation and providing higher value services to customers.
✓ Apresentação institucional de uma das principais locadoras de veículos do Brasil com valor de mercado de R$15,8 bilhões em 30/06/18
✓ Divisões de negócios incluem aluguel de carros, gestão de frotas, seminovos e franquias, com destaque para as divisões de aluguel e gestão de frotas
✓ Vantagens competitivas incluem liderança no mercado, aquisição de veículos em maior volume e melhores condições, e plataforma integrada de neg
Localiza is a Brazilian car rental company that presented at an investor relations presentation in July 2018. The presentation included sections on the company overview, main business divisions, financials, and appendix. Localiza operates in car rental, franchising, fleet rental, and used car sales. It has a market cap of US$4.1 billion and an integrated business platform that provides flexibility and superior performance. Localiza has competitive advantages through its scale in purchasing cars, market leadership in renting cars, and efficiency in selling used cars.
O documento fornece uma visão geral da Localiza, líder de mercado no setor de aluguel de veículos com valor de mercado de R$15,8 bilhões em 30/06/18. Apresenta os principais números da companhia, como uma frota de 208.552 veículos no 2T18, e R$3,6 bilhões em receita líquida no 1S18. Detalha também as vantagens competitivas da Localiza, como maior volume de compra de veículos que permite melhores condições de aquisição, e ampla presença
Localiza is a Brazilian car rental company that held an investor relations presentation in July 2018. The presentation included sections on the company overview, main business divisions, financials, and appendix. Localiza has grown significantly since being founded in 1973, currently has a market capitalization of $4.1 billion, and operates across multiple business divisions including car rental, fleet rental, used car sales, and franchising. The integrated business platform provides synergies and flexibility. Financial results show strong profitability, with the car rental and fleet rental divisions contributing most of the earnings. Localiza has several competitive advantages including scale, brand recognition, an efficient used car sales program, and innovation.
O documento fornece uma visão geral da Localiza, líder de mercado no setor de aluguel de veículos com valor de mercado de R$15,8 bilhões em 30/06/18. Apresenta os principais números da companhia, como uma frota de 208.552 veículos no 2T18, e R$3,6 bilhões em receita líquida no 1S18. Detalha também as vantagens competitivas da Localiza, como maior volume de compra de veículos que permite melhores condições, e liderança no aluguel de
- The company exceeded 200,000 vehicles in its fleet for the first time at the end of 2Q18, with 208,552 vehicles. Car rental and fleet rental volumes grew 47.9% and 21.4% respectively in 2Q18.
- Consolidated net revenues increased 29.3% in 2Q18. Excluding the impacts of a truck drivers' strike and payroll, EBITDA would have grown approximately 30% and net income 32% compared to 2Q17.
- The end of period fleet grew strongly, with a 45% increase in car rental vehicles and the company surpassing 200,000 total vehicles for the first time.
1) A empresa superou a marca de 200 mil carros na plataforma no 2T18, com crescimento de 47,9% no aluguel de carros e 21,4% na gestão de frotas.
2) O EBITDA consolidado foi de R$347,6 milhões no 2T18, um crescimento de 16,4% em relação ao ano anterior, apesar dos impactos da greve de caminhoneiros.
3) A receita líquida consolidada cresceu 29,3% no 2T18, totalizando R$1,74 bil
The document reports on Localiza's performance in the first quarter of 2018. It shows that Localiza increased its market share in the car rental market to 52.2% and maintained its market share in the fleet rental market. Localiza's key operating metrics like number of cars sold, rental days, and fleet size all grew compared to the first quarter of 2017. The company experienced strong revenue, income, and cash flow growth. Consolidated revenues grew 36.1% and EBITDA grew 33.8% compared to the first quarter of 2017.
O documento apresenta os resultados financeiros e operacionais da Localiza no 1T18. A Localiza teve forte crescimento no período, com aumento de 38% na receita líquida e 46,3% no lucro líquido em comparação com o mesmo período do ano anterior. A participação de mercado da Localiza no mercado de aluguel de carros foi de 52,2%, mantendo a liderança no setor.
Localiza is a Brazilian car rental company founded in 1973. It has since expanded into several business divisions including car rental, fleet rental, used car sales, and franchising. The presentation provides an overview of Localiza's history, competitive advantages, financial performance, and each of its main business divisions. Localiza has achieved significant growth and scale, with a market capitalization of over $5 billion as of March 2018. Its integrated business platform and 44 years of experience in fleet management have allowed it to generate higher returns than its cost of debt.
1) A Localiza é líder de mercado no aluguel de carros e gestão de frotas no Brasil, com valor de mercado de R$18,6 bilhões em abril de 2018.
2) A empresa tem vantagens competitivas como maior escala de operação, reconhecimento da marca, tecnologia e excelência operacional.
3) As divisões de aluguel de carros e gestão de frotas são as mais rentáveis e geram caixa para renovar a frota e pagar dívidas.
This document provides an overview of Localiza, a Brazilian car rental company. It discusses Localiza's business divisions including car rental, fleet rental, used car sales, and franchising. It highlights Localiza's competitive advantages such as its integrated business platform, leadership in car purchasing which allows better conditions, largest distribution network in Brazil, and innovation in digital technologies. Financial information is presented showing Localiza's profitability comes primarily from its car rental and fleet rental divisions. [/SUMMARY]
1. Apresenta visão geral da Localiza, sua história, principais divisões de negócios e dados financeiros do 1T18.
2. Destaca as vantagens competitivas da Localiza, incluindo captação de recursos em melhores condições, maior volume de compra de carros e liderança no aluguel de carros.
3. Explica o ciclo financeiro do aluguel de carros, onde a receita da venda dos carros no final do ciclo de um ano compensa os custos fixos e variáveis.
1) A Localiza é líder no mercado brasileiro de aluguel de carros com valor de mercado de R$18,6 bilhões e frota de 193.260 carros no 1T18.
2) Sua principal fonte de receita e lucratividade está nas divisões de aluguel de carros e gestão de frotas.
3) As vantagens competitivas incluem maior escala de operação, reconhecimento da marca, excelência operacional e inovação tecnológica.
Localiza is a Brazilian car rental company founded in 1973. It has grown to become a market leader through strategic acquisitions and expanding into adjacent business areas like used car sales, fleet rental, and franchising. The presentation reviews Localiza's business divisions and competitive advantages, including its integrated business platform, scale in purchasing cars, brand recognition, and focus on innovation. Financial information for the first quarter of 2018 shows the company's profitability comes mainly from car rental and fleet rental.
Localiza is a Brazilian car rental company founded in 1973. It has grown to become the market leader through strategic acquisitions and expanding into adjacent business lines like fleet rental, used car sales, and franchising. The presentation reviews Localiza's history, integrated business platform, financial performance, and competitive advantages. It achieves higher profitability than peers through scale benefits, lower funding costs, and operational efficiencies across its business divisions.
O documento apresenta a Localiza, líder no mercado brasileiro de aluguel de carros. Resume suas principais divisões de negócios, dados financeiros de 2017 e vantagens competitivas, como escala de operações, marca reconhecida e excelência operacional. A Localiza tem foco em geração de valor para acionistas com rentabilidade consistente e retorno sobre capital investido acima do custo da dívida.
O documento apresenta a Localiza, líder no mercado brasileiro de aluguel de carros. Resume suas principais divisões de negócios, vantagens competitivas e desempenho financeiro, destacando o aluguel de carros e gestão de frotas como suas divisões mais rentáveis.
- The company reported strong growth in 2017 with net revenue reaching R$6.1 billion, a 36.5% increase. Fleet size ended at 194,279 cars.
- Net income increased 37.6% to R$563.4 million. The company acquired Hertz operations in Brazil and integrated them.
- Car rental segment saw 48.2% volume growth in 4Q17 and net revenue growth of 35.4% for the year. Fleet rental also experienced solid gains.
- The company invested heavily in fleet expansion, adding over 52,000 cars. Free cash flow before growth spending was R$871.8 million.
1. Localiza Rent a Car S.A.
4Q08 Results
(R$ millions - USGAAP)
1
March, 2009
2. Agenda
• Company
• Drivers of growth
• Competitive advantages
• Growth with profitability
• 2008 Financials
2
3. Integrated business platform
39,112 cars 23,403 cars
1.6 million clients 622 clients
199 agencies 209 employees
2,516 employees
Synergies:
cost reduction
cross selling
bargaining power
9,526 cars 34,281 cars sold
223 agencies in 9 countries 83% sold to final consumer
147 agencies in Brazil 35 points of sale
21 employees 449 employees
This integrated business platform gives Localiza flexibility and superior performance
Date: 2008
3
4. Strategy by division
Increase market leadership maintaining high return
Core Businesses
Add value to the brand by expanding the network in Brazil
and South America
Create value taking advantage of the integrated business
platform synergies
Support
Add value to the businesses, reducing depreciation as a
competitive advantage
4
5. Breakdown per division
Revenues EBITDA Net Income
Used car Franchising
Franchising Franchising
sales 1% Fleet rental
1% Car rental 3%
10% 21%
32%
Used car
Car rental
sales Fleet rental Car rental
52%
52% Fleet rental 37% 76%
15%
Revenues EBITDA Net income
Car rental 32% 52% 76%
Fleet rental 15% 37% 21%
Used car sales 52% 10% *
Franchising 1% 1% 3%
Total 100% 100% 100%
* Used cars losses are allocated in the rental divisions Date: 2008
5
6. Agenda
• Company
• Drivers of growth
• Competitive advantages
• Growth with profitability
• 2008 Financials
6
7. Growth opportunities
GDP elasticity
Rental divisions 5.8x GDP
Source: Localiza and Central Bank
Consolidation Air traffic
US market: 4 players 95%
BR market: 4 players 40% 8.7% CAGR (2004/2008)
1,901 players 60% Growth forecast between 5% - 8%
Source: Auto Rental News and estimates Source: Infraero, Gol and Tam
Fleet outsourcing Credit cards
Corporate target fleet of 500,000 cars 23.7% CAGR (2004/2008)
Approximately 25% rented 41 mm holders (estimated)
Replacement
Source: Company estimates Source: Abecs and estimates
Around 10 million cars insured
Accident frequency of 15% p.a.
Source: Susep, Denatran and estimates
7
8. Growth opportunities: GDP
Rental revenues accumulated growth rate – rentals
Localiza
5.8x
GDP
2005 2006 2007 2008
Localiza’s revenues have been growing 5.8x the GDP.
Source: Central Bank and Localiza
8
9. Growth opportunities: consolidation
Brazilian market 2008
(# of agencies)
Airport agencies Off-airport agencies
Localiza*
Hertz**
262
68 Unidas**
Others*** 66
63 Localiza*
84
Avis**
48
Avis**
31 Hertz**
Unidas**
32 32 Others
1901
Off-airport market is fragmented among almost 2,000 small local car rental companies
Source: Each company website as of January 26th , 2009
9
10. Growth opportunities: airport x off-airport markets
Car rental division
Car rental revenues growth Car rental revenues breakdown
100% 100% 100% 100%
2006 2007 2008 38% 34%
46% 41%
Airports 16% 14% 19%
54% 59% 62% 66%
Off-airport 47% 28% 41%
2005 2006 2007 2008
Off-airports Airports
Off-airport revenues have grown 2x faster than on-airports.
10
11. Agenda
• Company
• Drivers of growth
• Competitive advantages
• Growth with profitability
• 2008 Financials
11
12. Competitive advantages
Gains of Higher
scale Integrated platform competitiveness
Geographical footprint
Rating
Used car sales network
Lower depreciation
Know-how
Strong brand
Market share
increase
12
13. Competitive advantages: geographical footprint
Nationwide
Nationwide
presence
presence
Strategic
Strategic
locations
locations
International
International
footprint
footprint
422 agencies in 9 countries
Date: 2008
13
14. Competitive advantages: largest distribution
Agencies in Brazil Cities in Brazil
346
277 246
186
79
346 51
98 246
63
100
72
Localiza* Unidas Hertz Avis Localiza Unidas Hertz Avis
Localiza network is larger than the second, the third and the fourth competitors combined
Source: Each company website as of January 26th , 2009
14
15. Competitive advantages: rating
Moody’s debt rating as of January, 2009 (Global scale)
Baa2
Ba1
Ba2
Ba3
B2
Caa3
Enterprise Localiza Avis Budget Hertz Europcar Dollar Thrifty
Moody’s corporate rating as of January, 2009 (Local Currency)
Localiza Rent a Car S.A. Aa2.br
Braskem S.A. Aa2.br
Magnesita Refratarios S.A. Aa2.br
Gafisa S.A. Aa3.br
Companhia Energetica de Minas Gerais - CEMIG Aa1.br
Duke Energy Int. Geração Paranapanema S.A. Aa2.br
Lupatech A3.br
Localiza has one of the best rating among its international peers
15
16. Competitive advantages: used car sales network
35 stores in Brazil
Logistic of distribution
Know-how of used car market
Selling to final consumers in order to
have higher revenue per sold car
Car sales inventory is used as a buffer of the car rental division during peaks of demand
16
17. Competitive advantages: low depreciation
Car rental division
2 9 % 3.618,0 24% 3 8
. 0 0 ,
0
22%
2.640,0 19% 19% 2.546,0
18% 2 8
. 0 0 ,
0
2.142,0 17%
1.656,0 1.752,0 11%
8%
1 8
. 0 0 ,
0
9% 939,1
5% 4% 7% 492,3 6%
322,9 7% 332,9 8 0 0 ,
0
6% 3%
0% 0% -1% 1%
1
- % 2
( 0 0 , )
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
GDP 0.3% 4.3% 1.3% 2.7% 1.1% 5.7% 2.9% 3.7% 5.4% 5.1%
Average depreciation Growth of purchase price (%) Growth of sale price (%)
Localiza 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Average purchase price (nominal) 13,788 14,575 14,586 15,600 16,140 19,960 24,350 25,840 25,650 27,740
Average sale price (nominal) 11,650 13,950 14,530 14,026 16,680 19,490 23,060 24,770 27,460 27,770
Average capex for renewal 2,138 635 56 1,574 (540) 470 1,290 1,070 (1,810) (30)
Average sold fleet age 13.7 15.5 14.1 14.1 12.8 11.6 11.0 14.7 12.2 12.3
Average depreciation 2,640 3,618 2,142 1,656 1,752 323 492 939 333 2,546
% over average purchase price 19.1% 24.8% 14.7% 10.6% 10.9% 1.6% 2.0% 3.6% 1.3% 9.2%
Average annualized depreciation per car in December totaled R$ 1,923.6
The depreciation is calculated using the estimated sale price in the future, net of the sales expenses. 17
18. Agenda
• Company
• Drivers of growth
• Competitive advantages
• Growth with profitability
• 2008 Financials
18
19. Localiza has been increasing its market share
2004 2007
Localiza
33.0%
22.4% Hertz
6.0%
Car rental Others
Avis
50.0% 17.0%
Unidas 6.0%
5.0%
Total Fleet
10.2% 13.2%
Unidas
8.4%
Fleet rental
Others
78,4%
15.5%
22.1%
Consolidated
Localiza is gaining market share…
19
Source: ABLA e Company, based on revenue
31. Net debt reconciliation
FCF before Change in vehicle Capex Stock Dividends Interest on
growth suppliers growth repurchase equity
account (CAPEX)
205.7
-765.1 -1,254.5
Net debt Net debt
12/31/2007 12/31/2008
-43.6 -55.0
-107.7
-188.9
-299.9
- 343.5 - 162.7
Discretionary Dividends and
Investment Interest on equity
Capex for growth was the main reason for debt increase.
31
32. Net debt x fleet value
(R$ millions)
1,752.6
1,492.9
1,247.7 1,254.5
900.2
765.1
612.2 535.8 440.4
281.3
2004 2005 2006 2007 2008
Net debt Fleet value
End of period balance 2004 2005 2006 2007 2008
Net debt /Fleet value (USGAAP) 46% 60% 36% 51% 72%
Net debt / EBITDA (USGAAP) 1.4x 1.9x 1.4x 1.9x 2.5x
Net debt / EBITDA (BRGAAP) 1.1x 1.5x 1.0x 1.3x 1.8x
Net debt / Equity (USGAAP) 1.0x 1.4x 0.7x 1.3x 2.0x
Comfortable debt ratios.
32
33. Debt profile - principal
(R$ millions)
Debt profile on December (Principal)
500,0
335,0
195.6
112,7 109,6
66,8
2009 2010 2011 2012 2013 2014
R$176.1 millions - paid
R$ 19.5 millions – extended to sep/10
R$195.6 millions – debt from 2009
No new debt has been contracted
Sep/08 Feb/09* Var.
Net debt – R$ millions 1,201.0 1,172.4 (28.6)
Car suppliers – R$ millions 201.7 2.4 (199.3)
Net debt + car suppliers – R$ millions 1,402.7 1,174.8 (227.9)
* up to 2/12/2009.
2009 debt already prepaid.
33
34. Debt status (principal)
(R$ millions)
Start Type Due date Principal 12/31/2008 Principal 02/28/2009
Feb-08 Resolution 2770 Jan-09 2.2 Paid
Feb-08 Resolution 2770 Feb-09 15.0 Paid
Jan-08 Resolution 2770 Apr-09 39.5 Paid
Oct-08 Overdraft Apr-09 30.0 Paid
Apr-08 Compror Apr-09 11.4 Paid
Jan-08 Resolução 2770 May-09 35.0 Paid
Nov-08 Working capital May-09 43.0 Paid
Jun-07 BNDES up to Dec/09 1.0 0.7
Apr-05 1st Debentures Apr-10 350.0 350.0
Sep-08 Working capital Sep-10 169.5 169.5
Apr-08 Working capital Apr-11 35.0 35.0
Sep-08 3st Debentures Sep-11 300.0 300.0
Apr-08 Working capital Apr-12 43.0 43.0
Jun-07 BNDES up to May/12 2.2 2.2
Jul-07 2st Debentures Jul-12 66.6 66.6
Apr-08 Working capital Apr-13 43.0 43.0
Jul-07 2st Debentures Jul-13 66.6 66.6
Jul-07 2st Debentures Jul-14 66.8 66.8
Gross debt 1,319.7 1,143.4 -13.4%
Cash and equivalents 129.9 70.8
Net debt 1,189.8 1,072.6 -9.8%
* Operations in foreign currency are swapped at the same issuance day to CDI (R$) 34
35. Free cash flow - FCF
250.7
(R$ millions)
205.7
118.2
52.0 58.2
2004 2005 2006 2007 2008
Free cash flow - R$ millions 2004 2005 2006 2007 2008
EBITDA 197.5 277.9 311.3 403.5 504.1
Used car sales revenues (303.0) (448.2) (590.3) (853.2) (983.2)
Cost of used car sales 248.7 361.2 530.4 760.0 874.5
EBITDA without used car sales revenues and costs 143.2 190.9 251.4 310.3 395.4
Income tax and social contribution – current (40.9) (32.7) (42.7) (63.4) (52.8)
Working capital variation 6.2 (24.2) (4.8) 13.3 (44.8)
Cash provided before capex 108.5 134.0 203.9 260.2 297.8
Used car sales revenues 303.0 448.2 590.3 853.2 983.2
Capex of car – renewal (349.3) (496.0) (643.3) (839.0) (1,035.4)
Net capex for renewal (46.3) (47.8) (53.0) 14.2 (52.2)
Capex - Property and equipment (10.2) (28.0) (32.7) (23.7) (39.9)
Free cash flow before growth 52.0 58.2 118.2 250.7 205.7
Capex of car – growth (143.8) (194.0) (287.0) (221.9) (299.9)
Change in amounts payable to car suppliers (capex) (21.9) (25.5) 222.0 (51.0) (188.9)
Free cash flow (113.7) (161.3) 53.2 (22.2) (283.1)
35
36. EVA
1 4 0 .
0
3 1 . %
0
24.6% 24.8% 114.3
100.0
1 00 .
0
18.7% 50.0% 2 1 . %
0
21.3%
37.3% 76.2 17.0%
16.9% 15.7%
6 0 .
0
41.6% 1 1 . %
0
55.5 11.0% 11.2% 10.9%
39.2
2 0 .
0 1 . %
0
2004 2005 2006 2007 2008
EVA (in R$ millions) Nominal WACC ROIC
2004 2005 2006 2007 2008
Average investment capital R$ millions 507.4 606.3 986.2 1,137.5 1,642.3
NOPAT margin (over rental revenue) 37.8% 35.2% 33.4% 35.6% 32.1%
Turnover of average investment capital (over rental revenue) 0.65x 0.71x 0.56x 0.60x 0.53x
ROIC 24.6% 24.8% 18.7% 21.3% 17.0%
Cost of debt 11.6% 13.6% 10.9% 8.4% 8.2%
Cost of equity 20.0% 16.2% 11.0% 11.5% 11.3%
Nominal WACC 16.9% 15.7% 11.0% 11.2% 10.9%
Spread (ROIC - WACC) - p.p. 7.7 9.2 7.7 10.1 6.1
EVA R$ millions 39.2 55.5 76.2 114.3 100.0
EVA increase (decrfease) R$ millions 16.3 20.7 38.1 (14.3)
Loss in fleet value was considered as a loss in equity, since it’s a non-recurring event.
36
37. Measures taken by the Company
Suspend purchases of new cars up to fleet adjustment
Increase car rental and fleet rental rates to compensate the higher depreciation costs
Immediate recognition loss in fleet value in the amount of R$87.6 million
Increase monthly fleet depreciation from R$7.5 million in October to R$11.4 million in December
Increase promotions and advertising with the purpose of enhancing car sales
Prepay 2009 debt
Fast reaction: Management immediately took the right measures to face the crisis.
37
38. Strategies for the current scenario
Fleet strategies:
Keep 2009 end of period fleet at same levels of the end of 2008
Increase the utilization rate to at least 72% in car rental division
Debt strategy:
Contract debt only for extending debt profile
38
39. How is the business going?
Until February 2009
Car rental division
Average rented fleet 22,187
Revenues growth 11.2%
Fleet rental division
Average rented fleet 19,930
Revenues growth 22.8%
Used car sales division
Number of cars sold 4,992
39
40. 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 the underwriters. 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.
40
42. Car rental financial cycle
Funding (PV)
1-year cycle Net car sale revenue
$25.7 $26.0
Revenue: 19.4
1 2 3 4 5 Expenses: (10.1) 8 9 10 11 12
$25.7
$28.8
Car acquisition Funding (FV)
Car rental Used cars Total
Per operating car Per sold car 1 Year
R$ % R$ % R$
Revenues 19,4 100,0% 27,7 100,0% 47,1
Additional revenue 0,6 2,3% 0,6
Cost (7,8) -40,4% (7,8)
SG&A (2,3) -12,0% (2,5) -9,0% (4,8)
Net car sale revenue 25,9 93,3% 25,9
Book value of car sale (25,3) -91,3% (25,3)
EBITDA 9,2 47,7% 0,6 2,0% 9,8
Depreciation (non-vehicle) (0,5) -2,3% (0,1) -0,4% (0,6)
Depreciation (vehicle) (1,9) -6,9% (1,9)
Interest on debt (2,4) -8,6% (2,4)
Tax (1,2) -6,3% 1,2 4,4% (0,0)
NET INCOME 7,6 39,0% (2,7) -9,8% 4,9
Return on asset 19,3%
Cost based on 2008’s figures and new levels of SG&A for the used car sales division and vehicle depreciation 42
43. Fleet rental financial cycle
Funding (PV) Net car sale revenue
33.2 2-year cycle 27.3
Revenue: 30.7
1 2 3 4 5 Expenses: (9.6) 20 21 22 23 24
33.2
Car acquisition
41.7
Funding (FV)
Fleet rental Used cars Total
Per operating car Per sold car 2 Years 1Year
R$ % R$ % R$ R$
Revenues 29,1 100,0% 29,1 100,0% 58,2 29,1
Additional revenue 0,4 1,4% 0,4 0,2
Cost (7,9) -27,1% (7,9) (3,9)
SG&A (1,7) -6,0% (2,4) -8,3% (4,1) (2,1)
Net car sale revenue 27,1 93,1% 27,1 13,5
Book value of car sale (26,5) -91,2% (26,5) (13,3)
EBITDA 19,5 66,9% 0,6 2,0% 20,0 10,0
Depreciation (non-vehicle) (0,1) -0,3% (0,1) (0,0)
Depreciation (vehicle) (6,8) -23,4% (6,8) (3,4)
Interest on debt (6,0) -20,5% (6,0) (3,0)
Tax (1,2) -4,1% 4,6 15,9% 3,4 1,7
NET INCOME 18,2 62,6% (7,6) -26,0% 10,7 5,3
Return on asset 16,1%
Cost based on 2008’s figures and new levels of SG&A for the used car sales division and vehicle depreciation 43