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November, 2014
Localiza Rent a Car S.A.Institutional Presentation
1
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Webcast Earnings release 3Q14
Agenda
2
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 – PE firm DL&J enters at a market cap of US$ 150 mm
1997 – Expansion strategy by adjacencies: Fleet Rental
Phase III – Reaching Scale
2005 – IPO: market cap of US$ 295 mm
2011 – Rated as investment grade by Moody’s, Fitch and S&P in 2012
2012 – ADR level I
09/30/2014 – Market cap of US$3.1 bi with ADTV of R$35.5 million
1973 1982 1983 2004 2005 2014
3
Company: integrated business platform
Synergies:bargaining powercost reductioncross selling
12.800 cars 168 locations in Brazil 64 locations in South
America 35 employees
57,3% sold to final consumer
74 stores 997 employees
70,491 cars 4.2 million clients 302 locations 4,371 employees
33,072 cars 787 clients 373 employees
This integrated business platform gives Localiza flexibility and superior performance.Based on the 3Q14 4
Car Rental Fleet Rental
SeminovosFranchising
Franchising
Supplementary business, with the purpose to expand the brand’s network.
Franchising is seen as a primarily strategic business by management – the revenues generated are low, however brand and network expand at minimum capital expenditure.
Company: Business platform divisions
Car Rental
Localiza car rental rents to individuals or businesses at airports and other locations.
The traditional backbone of Localiza. With its giant fleet that gets renewed annually, it lays the foundation for all scale effects captured by the group as a whole.
Fleet Rental
Offering customized fleet for 2-3 years terms.
Localiza Fleet is seen as an additional business that generates value by leveraging synergies created by the integrated platform approach.
Used car sales
Support area, with the objective to sell the Company’s used cars and add know-how in buying cars and estimating the residual value.
As a support business activity, Seminovos enables the sell roughly 60% of used cars directly to the final customer, thereby maximizing the residual value of used rental cars.
5
Total1 year
R$ % Seminovos % R$Net revenues 19,7 100,0% 28,1 100,0% 47,8Costs - fixed and variable (9,1) -46,1% (9,1)SG&A (3,3) -17,0% (2,6) -9,4% (6,0)Net revenues of car sold 25,5 90,6% 25,5Book value of car sold (24,1) -85,8% (24,1)EBITDA 7,3 36,8% 1,4 4,9% 8,6Cars Depreciation (1,5) -5,2% (1,5)Others depreciation (0,4) -1,9% (0,2) -0,8% (0,6)Financial expenses (1,3) -4,6% (1,3)Taxes (2,1) -10,5% 0,5 1,7% (1,6)Net Income (Loss) 4,8 24,5% (1,1) -4,0% 3,7
NOPAT 4,6ROIC 17,1%Cost of debt after taxes 6,0%
Car Rental SeminovosPer car soldPer operating car
6
Net car salerevenue R$25.51 year cycle
Car Rental Financial CyclePer car
R$27.0Car acquisition
1 2 3 4 5 6 7 8 9 10 11 12Expenses, interest and tax
Revenue
Spread11.1p.p.
Total2 years
R$ % Seminovos % R$Net revenues 36,9 100,0% 26,7 100,0% 63,7Costs - fixed and variable (10,3) -28,0% (10,3)SG&A (2,4) -6,5% (2,4) -8,9% (4,8)Net revenues of car sold 24,4 91,1% 24,4Book value of car sold (23,1) -86,2% (23,1)EBITDA 24,2 65,5% 1,3 4,9% 25,5Cars Depreciation (9,2) -34,3% (9,2)Others depreciation (0,1) -0,2% - 0,0% (0,1)Financial expenses (2,2) -8,2% (2,2)Taxes (7,2) -19,6% 3,0 11,3% (4,2)Net Income (Loss) 16,9 45,7% (7,0) -26,3% 9,9
Net Income (Loss) - per year 8,4 45,7% (3,5) -26,3% 4,9
NOPAT 5,7ROIC 17,1%Cost of debt after taxes 6,0%
Per operating carFleet Rental Seminovos
Per car sold
7
Net car salerevenue R$24.42 year cycle
Fleet Rental Financial Cycle Per car
Spread11.1p.p.
R$33.3Car acquisition
1 2 3 4 5 6 19 20 21 22 23 24Expenses, interest and tax
Revenue
1,462.8 1,699.2 1,802.5 1,821.8
2010 2011 2012 2013
Rental revenues evolution
4,637.6 4,692.1 4,791.3 4,698.2
2010 2011 2012 2013
Localiza’s rental revenues at constant prices
Sector’s revenue at constant prices (ex- Localiza)
GDP -0.3% 7.5% 2.7% 1.0%
Average GDP growth: 3.7%
Source: ABLA (Brazilian Car Rental Association) and Localiza. 8
The Company grew at an average of 2.8x GDP and 19.0x the sector.
Raisingmoney Buying
cars
Renting Cars SellingCars
Source: ABLA (Brazilian Car Rental Association) and Localiza.
Cash to renew the fleet or pay debt
$
Profitability comes from rental divisions
Competitive advantages: 41 years of experience in managing assets
$
9
Competitive advantages: raising money
Global Scale
National Scale
Localiza raises money with better conditions when compared to competitors.
As of March, 2014.
BBB FitchBaa3 Moody’sBBB- S&P
BBB+ S&P B+ S&P B+ Fitch B1 Moody‘s
brAAA S&P Aa1.br Moody’sAAA(bra) Fitch
brAA- S&PA+ (bra) Fitch
brA S&P A (bra) Fitch
brA+ S&PA+ (bra) Fitch A(bra) Fitch
Raisingmoney
Buyingcars Renting Cars Selling
Cars
10
Investment grade: lower spreads and longer tenors
11
Competitive advantages: buying cars
Localiza buys cars with better conditions due to the volume of purchases.
Number of cars purchased - 2013
• Includes Franchising
78.779
18.8669.950
*
Source: each company website
Localiza’s share in the internal sales of the major OEMs - 2013
2.6%
Raisingmoney
Buyingcars Renting Cars Selling
Cars
Localiza Unidas Locamerica
108
15855
12
The Company is present in 242 cities where the other largest networks do not operate.
Competitive advantages: renting cars
Know HowBrand Brazilian distribution
# of
bra
nche
s#
of c
ities
Source: Brand Analytics and each company website (Localiza and Peers, as of March, 2014)
470321
Raisingmoney
Buyingcars Renting Cars Selling
Cars
Localiza Unidas Hertz Avis
341
99 78 42
13
Sales to final consumer
Competitive advantages: selling cars
Selling directly to final consumer reduces depreciation.
Cars available for sale are used during peaks of demand.
Raisingmoney
Buyingcars Renting Cars Selling
Cars
Buffer: additional fleet
7,3% 8,6%6,3% 6,0%
7,8%
16,9% 17,1% 16,1% 16,5% 18,0%
2010 2011 2012 2013 9M14
14
ROIC versus cost of debt after taxes
9.6p.p. 8.5p.p. 10.2p.p.9.8p.p.
ROIC increase was enough to offset higher basic interest rate.
ROIC Cost of debt after taxes
10.5p.p.
Annualized
Activities Car and Fleetrentals
Car and Fleetrentals Fleet rental
Logistics, Car and Fleet and
rentals
Machinery, heavy equipments and
fleet rentals
Gross RentalRevenues (R$ million) 1,821.8 567.0 356.9 N/D 216.8**
Fleet (End of Period) 117,759 38,292 28,265 35,200* 18,616
ROIC (NOPAT/ Investment***):2013 16.5% 6.8% 7.4% 6.9% 7.8%2012 16.1% 3.9% 6.9% 7.0% 7.9%ROE (Net Income/ Shareholders’ Equity):2013 28.7% 9.1% 5.3% 9.2% 31.8%2012 18.2% 1.2% 12.8% 9.2% 10.7%
Net Debt/EBITDA 1.5x 2.2x 3.1x 3.9x 3.5x
Net Debt/PL 1.0x 0.9x 1.7x 2.7x 6.8x
2013 Industry overview
Source: ABLA, Companies’ Financial Statements.* JSL: 30.600 cars in fleet rental and 4.600 Movida**Ouro Verde: Net Fleet Rental Revenue; Ouro Verde: EBITDA excludes selling of Martini Meat. ***Investiment = Average shareholders’ Equity + Average Net Debt 15
16
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Webcast Earnings release 3Q14
Agenda
17
Car Rental overview
65.9%Compact cars
2013 Fleet composition70,717 cars
34.1%Others
Corporate fleet size
47,51764,688 70,717
2009 2011 2013
802.2980.7 1,093.7 1,163.5
853.1 953.1
289.6 325.1
2010 2011 2012 2013 9M13 9M14 3Q13 3Q14
Net Revenues (R$ million)
29
70 82 89 90
2003 2010 2011 2012 2013
18
DriversAir traffic passengers - million
Source: BNDES, ANAC, IPEADATA and BCB
GDP per capita (R$ thousands)
6.9 7.5 8.4 9.5 10.7 11.7 12.8 14.2 16.0 16.6 19.0
21.3 22.4 24.1
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
151180 200
240260 300
350 380415
465510
545622
678
51%
38% 37% 35%
31%27%
22% 20% 18% 16% 15% 15% 13% 12%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Monthly minimum salary (R$) Daily rental price over minimum salary (%)
Car rental affordability
631
153 13663 57
Oil and Gas Others* Eletric power Highway Railroad
Investments in Brazil (2014‐2019)(R$1,040 billion)
*Ports, Urban Mobility, Basic sanitation and Airports
19Source: ABLA 2013 Yearbook, Bradesco and Company’s loyalty program.
Company current penetration
Car Rental
4 million
84 millionAdult population(age > 20 years)
Class A+B+C
15 millionAdult population(age > 20 years)
Class A+B
Penetration: 4.8% on A, B and C classes.
Opportunity: Low penetration in leisure trips
20
Distribution
Car rental distribution (Brazil)
415
449474 479 470
2010 2011 2012 2013 9M14
21Source: Abla 2014 and each company’s website (August 2014)
Off-airport market is still fragmented.
Airport locations Off-airport locations
Car Rental Locations in Brazil
39,5%
7,5%8,2%
6,5%
2,9%
1,9%
33,5%
22
31,8%
4,1%7,4%
4,5%3,1%1,5%
47,5%
47.0%
35.9%Others
Movida
Avis
Hertz Unidas
Franchising
Franchising
Others
Movida Avis Hertz
Unidas
2013 Market Share – Car Rental
Rental RevenuesR$3,055.8 million
Fleet222,554 cars
Characteristics of Car Rental network :
Complex chain management
High fixed-cost
Consolidated market in airports locations
Fragmented market in off-airport locations
High barrier to entry
Source: Euromonitor, ABLA and Companies’ Financial Statements and estimates.
Gains of scale
Sources: EUROMONITOR from 2008 to 2012 and ABLA for 201323
Market Share Evolution – Car Rental
33.2%
29.5%
37.8% 40.5% 41.8%
47.0%
5.2% 6.2% 6.9% 6.1% 6.1% 8.2%
2.9% 2.5% 2.9% 2.9% 2.8% 2.9%2.6% 2.3% 2.6% 2.5% 2.5% 6.5%
56.1%
59.5%
49.8% 48.0%46.8%
35.4%
2008 2009 2010 2011 2012 2013
Localiza
HertzAvis
Unidas
Others
Based on Revenues
24
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Webcast Earnings release 3Q14
Agenda
25
Number of clients
Fleet Rental overview
38.0%Compact cars
2013 Fleet composition32,809 cars
62.0%Others
584687 760
2009 2011 2013
361.1 455.0
535.7 575.9 432.9 425.2
144.1 142.0
2010 2011 2012 2013 9M13 9M14 3Q13 3Q14
Net Revenues (R$ million)
2013 Market Share – Fleet Rental
26
Rental RevenuesR$3,464.2 million
Fleet307,336 cars
Characteristics of the Fleet Rental business:
Low fixed cost Risk of car residual value (depreciation) Low entry barrier
Source: Euromonitor for revenue , ABLA for fleet and Companies’ Financial Statements.
Locamerica10.3%
Unidas9.1%
Ouro Verde 4.9%
18.4%
Others57.2%
No gains of scale
11.3%Unidas7.1%
Locamerica10.3%
JSL10.0%
Ouro Verde6.0%ALD
4.8%
Outros ; 50,5%
27Source: ABLA, Datamonitor and Localiza
Low penetration of rented fleet in Brazil.
Rented fleet penetration
Corporate fleet:4,000,000*
Rented fleet:307,336
32,809
Brazilian MarketWorld
8.1% 8.9%13.3% 16.5%
24.5%
37.4%
46.9%
58.3%
Drivers
*Localiza estimates
28
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Webcast Earnings release 3Q14
Agenda
29Increased sales volume even with stability in the number of stores in the last three years.
# of points of sale
Car sales – operating data
5566 73 74 74
2010 2011 2012 2013 9M14
Result of the OEM’s delays in delivering cars
13,285 14,504 15,091 13,764 12,934 13,66918,039 17,999 17,449 15,889
18,815
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
# Number of cars sold
30Source: O Estado de São Paulo newspaper, as of 08/16/13 (based on researches of Sindipeças) and Globo website, as of 03/10/2014.
Used car sales drivers: affordability and penetration
# of inhabitants per car 2012 – (Brazil 2013) # of inhabitants per car - Brazil
4.4
4.2
4.0
3.6
2.1
2.0
1.9
1.8
1.2
Brazil
Argentina
Russia
South Korea
Japan
France
Germany
United Kingdon
USA
5,9 5,5 5,24,4
2010 2011 2012 2013
Affordability to buy cars – Public Price of the most basic Gol
300 350 380 415 465 510
545 622 678 724
84
71 69 61
55 51
49 43 43 43
‐
10
20
30
40
50
60
70
80
90
‐
100
200
300
400
500
600
700
800
900
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Minimum wage (R$) Minimum wages to buy a new car
8,4 8,9 9,0 9,4
3,3 3,5 3,6 3,6
31
2.5x 2.5x
2010 2011 2012 2013
2.6x
Brazilian car market: new x used car market and affordability
New cars
Used cars
Source: FENABRAVE (Autos + light commercial) and Anfavea
2.6x
Total market of 13 million cars.
32
2013 Up to 2 years409,121
2013 Brand new3,579,903
2013 Used cars9,434,225
0.7% 1.8% 13.9%
Car sales – operating data
Source: Anfavea and Fenabrave
Examples • Retailers• “Loja do carro”
• Dealers• Fiat, VW, Ford,
GM most successful
• Auto Brasil
• Rental operators• Locamerica, Hertz
• “Auto malls” and “Cidade do automóvel”
Points of sale • 45,600 (Fenauto) • 3,714 (Anfavea)• 25 (Unidas,
Locamerica, Avis and Hertz website).
• 71 (Fenauto)
Main players
33
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Webcast Earnings release 3Q14
Agenda
34
Highlights
289.6 325.1
3Q13 3Q14
Car Rental DivisionNet revenues
R$
mill
ion
438.6 471.5
497.3 535.9
3Q13 3Q14Car Rental Used car sales
Net revenues Consolidated
R$
mill
ion
1,007.4935.9
ROIC Cost of debt after taxes
Spread ROIC minus cost of debt after taxes
6.0%7.8%
16.5% 18.0%
2013 9M14
10.2p.p.10.5p.p.
Fleet renewal# Number of cars sold
Annualized
18,039 17,999 17,449 15,88918,815
3Q13 4Q13 1Q14 2Q14 3Q14
*
* 2Q14 was impacted by the world cup and less business days.
802.2980.7 1,093.7 1,163.5
853.1 953.1
289.6 325.1
2010 2011 2012 2013 9M13 9M14 3Q13 3Q14
35
Net Revenues (R$ million)
# Daily Rentals (thousands)
Car Rental Division
Car rental net revenues grew 12.3% in 3Q14 due to 7.5% in daily volumes and 6.0% increase in the average rental rate when compared with 3Q13.
10,734 12,794 13,749 14,242 10,528 11,518
3,608 3,880
2010 2011 2012 2013 9M13 9M14 3Q13 3Q14
234 247 272 286 302
181 202 202 193 16861 47 50 63 64
2010 2011 2012 2013 9M14
Car Rental network evolution
16 new owned rental locations were added to the network in the 9M14.
# of car rental locations (Brazil and abroad)
Localiza´s branches - Brazil Franchisees´ branches - Brazil Franchisses´ branches - abroad
476 496 524 542 534
+16
37
Utilization rate evolution – Car Rental Division
Higher utilization rate contributed to improve ROIC.
69.1% 68.9% 70.8%66.8% 66.4%
70.5%
2010 2011 2012 2013 9M13 9M14
361.1 455.0
535.7 575.9 432.9 425.2
144.1 142.0
2010 2011 2012 2013 9M13 9M14 3Q13 3Q14
8,0449,603
10,601 10,8448,175 7,720
2,700 2,567
2010 2011 2012 2013 9M13 9M14 3Q13 3Q14
38
Net Revenues (R$ million)
# Daily Rentals (thousands)
Fleet Rental Division
Contracted revenue went from R$647.3 million in 12/31/2013 to R$724.3 million in 30/09/2014.
1,910.4 1,776.5 1,618.8 2,026.2
1,472.4 1,605.8
528.1 584.2
1,321.9 1,468.1 1,520.0 1,747.3
1,241.8 1,465.2
497.3 535.9
2010 2011 2012 2013 9M13 9M14 3Q13 3Q14
Purchases (includes accessories) Used car sales net revenues
Cars purchased Cars sold
39
Net investmentFleet Expansion* (quantity)
Efficiency in managing car purchases aiming at optimizing utilization rate.
Net Investment in Fleet (R$ million)
65,934 59,950 58,655 69,744
51,156 52,738
17,569 17,674
47,285 50,772 56,644 62,641
44,642 52,153
18,039 18,815
2010 2011 2012 2013 9M13 9M14 3Q13 3Q14
9,178 2,0117,10318,649
6,514
(470)
308.4 98.8588.5 278.9230.6
* It does not include theft / crashed cars.
30.8
585
(1,141)
140.6
48.3
40
Sales by quarterQuantity
Higher sale volumes result in lower fixed costs per car sold.
# Number of cars sold
Result of the OEM’s delays in delivering cars
13,285 14,504 15,091 13,764 12,934 13,66918,039 17,999 17,449 15,889
18,815
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
41
End of period fleetQuantity
In the Car Rental Division, fleet was kept stable despite the rental volume growth, reflecting productivity gain thru better utilization.
61,445 64,688 65,086 70,717 70,406 70,491
26,615 31,629 32,104 32,809 32,809 33,072
2010 2011 2012 2013 9M13 9M14
Car Rental Fleet Rental
103,52696,31788,06097,190 103,215 103,563
The number of cars in the Fleet Rental Division totaled 33,072, on September 30, including 1,583 cars in preparation to be delivered to customers (444 cars on June 30, 2014).
1,175.3 1,450.0 1,646.7 1,758.9 1,300.6 1,391.8 438.6 471.5
1,321.9 1,468.1 1,520.0 1,747.3
1,241.8 1,465.2
497.3 535.9
2010 2011 2012 2013 9M13 9M14 3Q13 3Q14
Consolidated net revenuesR$ million
Consolidated net revenues increased by 12.4% in 9M14.
Car Rental Used car sales
2,918.1 3,506.22,542.42,497.2
3,166.7
935.9 1,007.4
2,857.0
43
Consolidated EBITDA R$ million
EBITDA grew 7.6% in the 9M14.
649.5821.3 875.6 916.5
680.5 732.2
238.2 241.5
2010 2011 2012 2013 9M13 9M14 3Q13 3Q14
(*) It considers the new appropriation criteria of the overhead, which is also appropriated to Seminovos.(**) Up to 2011, accessories and freight of new cars were recorded as permanent assets and depreciated over the cars’useful life. From 2012 on, such values have been accounted directly in the cost line, impacting EBITDA but reducingdepreciation costs.
Divisions 2010** 2011** 2012 2013 9M13 9M14* 3Q13 3Q14*
Car Rental 45.3% 46.9% 40.9% 36.8% 36.7% 39.3% 38.5% 39.6%
Fleet Rental 68.0% 68.6% 66.4% 65.5% 65.8% 61.5% 65.2% 61.1%
Rental Consolidated 52.3% 53.8% 49.3% 46.5% 46.6% 46.3% 47.5% 46.3%
Used Car Sales 2.6% 2.8% 4.2% 5.7% 6.0% 6.0% 6.0% 4.4%
Depreciation IPI Effect - Non recurring additional depreciation
3,509.7 4,133.0
4,311.3
4,592.3 4,054.8 3,954.0 1,096.9
2010 2011 2012 2013 9M14 3Q14
1,536.0 1,683.9
1,895.8 1,452.4 1,316.6 1,231.6
2,076.6
2010 2011 2012 2013 9M14 3Q14
44
Average depreciation per carin R$
3,972.4
5,408.2
Car Rental
Fleet Rental
*Annualized
Lower depreciation contributed to higher ROIC in the 9M14.
* *
* **Annualized
250.5 291.6
240.9
384.3294.4 308.3
102.1 101.9
2010 2011 2012 2013 9M13 9M14 3Q13 3Q14
45
Consolidated net incomeR$ million
* Pro forma 2012 net income excluding additional depreciation related to the IPI tax reduction, net of income tax.
336.3 *
Higher EBITDA and lower depreciation were offset by an increase of R$14.3 million in financial expenses.
46
Free cash flow - FCF (*) Without the technical discount up to 2010
Free cash flow - R$ million 2010 2011 2012 2013 9M14O
pera
tions
EBITDA 649.5 821.3 875.6 916.5 732.2
Used car sale revenue, net from taxes (1,321.9) (1,468.1) (1,520.0) (1,747.3) (1,465.2)
Depreciated cost of cars sold (*) 1,203.2 1,328.6 1,360.2 1,543.8 1,294.5
(-) Income tax and social contribution (57.8) (83.0) (100.9) (108.5) (89.9)
Change in working capital 54.5 (83.9) 37.1 2.9 (82.8)
Cash provided by rental operations 527.5 514.9 652.0 607.4 388.8
Cap
ex -
Ren
ewal
s
Used car sale revenue, net from taxes 1,321.9 1,468.1 1,520.0 1,747.3 1,465.2
Fleet renewal investment (1,370.1) (1,504.5) (1,563.3) (1,819.7) (1,589.3)
Net investment for fleet renewal (48.2) (36.4) (43.3) (72.4) (124.1)
Fleet renewal – quantity 47,285 50,772 56,644 62,641 52,153
Investment, other property and intangibles investments (50.6) (59.9) (77.8) (47.5) (36.0)
Free cash flow before growth, new HQ and interest 428.7 418.6 530.9 487.5 228.7
Cap
ex -
Gro
wth
Fleet growth investment (540.3) (272.0) (55.5) (209.4) (17.8)
Change in accounts payable to car suppliers 111.3 32.7 (116.9) 89.7 121.8
Fleet growth (429.0) (239.3) (172.4) (119.7) 104.0Fleet increase / (reduction) – quantity 18,649 9,178 2,011 7,103 585
Free cash flow after growth, and before interest and before new headquarters (0.3) 179.3 358.5 367.8 332.7
Cap
ex–
HQ
Investment in the construction of the new headquarters (0.5) (3.1) (2.4) (6.5) (28.9)
Marketable securities – new headquarters - - - - (90.0)
New headquarters construction (0.5) (3.1) (2.4) (6.5) (118.9)
Free cash flow before interest (0.8) 176.2 356.1 361.3 213.8
47
The strong cash generation allowed net debt to remain stable, even after investments in the new headquarters.
(*) Before new headquarters capex
Changes in net debt R$ million
Net debt as ofDec 31, 2013
1,332.8
FCF (*)
-332.7
Financial expenses
119.4
New HQ
118.9
Dividends
83.5
Net debt as ofSep 30, 2014
1,321.9
1,281.1 1,363.4 1,231.2 1,332.8 1,321.9
2,446.7 2,681.7 2,547.6 2,797.9 2,960.4
2010 2011 2012 2013 9M14
48
Debt - ratiosNet debt vs. Fleet value
BALANCE AT THE END OF PERIOD 2010(*) 2011 2012 2013 9M14
Net debt / Fleet value 52% 51% 48% 48% 45%
Net debt / EBITDA** 2.0x 1.7x 1.4x 1.5x 1.4%
Net debt / Equity 1.4x 1.2x 0.9x 1.0x 0.8%EBITDA / Net financial expenses 5.0x 4.6x 6.3x 8.3x 6.1x
(*) 2010 ratios based on USGAAP financial statements(**) Annualized
Net debt Fleet value
Comfortable debt ratios.
35.9 184.2 487.1 511.4
221.0 544.5 445.0
147.5
2014 2015 2016 2017 2018 2019 2020 2021
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Debt maturity profile (principal)R$ million
The Company monitors the market on a regular basis and changes its debt portfolio to improve debt profile and/or reduce financial costs.
Cash1,291.4
707.2
As of September 30, 2014After 8th debenture issuance
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Localiza Level I ADR
Ticker Symbol: LZRFY CUSIP: 53956W300ISIN: US53956W3007Ratio: 1 Common Share : 1 ADRExchange: OTCDepositary bank: Deutsche Bank Trust Company AmericasADR broker helpline: +1 212 250 9100 (New York)
+44 207 547 6500 (London) E-mail: [email protected] website: www.adr.db.comDepositary bank’s local custodian: Banco Bradesco S/A, Brazil
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Disclaimer
DisclaimerThe 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 doesnot 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 anyother person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of theinformation 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 ExchangeAct of 1934. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-lookingstatements 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 itssubsidiaries 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 toLOCALIZA’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 securitiesto 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 anoffering of securities in future. Such offering memorandum will contain, or incorporate by reference, detailed information about LOCALIZA and its business and financialresults, 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 anythingcontained herein shall form the basis of any contract or commitment whatsoever.
Website: www.localiza.com/ir E-mail: [email protected] Phone: 55 31 3247-7024
Roberto MendesCFO and IR
Nora LanariHead of IR
Eugênio MattarCEO
