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Localiza Rent a Car S.A.
July , 2015
1. Company overview
2. Main business divisions
� Car Rental
� Fleet Rental
� Seminovos
3. Financials
Appendix: Earnings release 2Q15
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 – 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
12/31/2014 – Market cap of about US$3.0 bi with ADTV of US$14.0 million
1973 1982 1983 2004 2005 2014
3
Company: integrated business platform
Synergies:
bargaining power
cost reduction
cross selling
� 12,934 cars� 175 locations in Brazil� 67 locations in South America� 38 employees
� 58,2% sold to final consumer� 75 stores� 993 employees
� 71,525 cars� 4.6 million clients� 310 locations� 4,522 employees
� 33,217 cars� 793 clients� 399 employees
This integrated business platform gives Localiza fle xibility and superior performance.Based on the 1H15 4
Car Rental Fleet Rental
SeminovosFranchising
5
2014 Consolidated breakdownR$ million
Company’s profitability comes from Car Rental and Fleet Rental Divisions.
12%
35%
52%
35%
65%
Net RevenuesR$3,892
EBITDAR$970
52%
15%
33%
EBIT*R$726
R$2,018
R$1,302
R$572
R$120
R$507
R$343
R$253
R$473
*Seminovos results recorded in the Car Rental and Fleet Rental Divisions
6
� 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
7
Net car salerevenue R$26.21 year cycle
Car Rental Division - Financial CyclePer car
R$27.8Average car price
1 2 3 4 5 6 7 8 9 10 11 12Expenses, interest and tax
Revenue
Spread9.5p.p .
Total1 year
R$ % R$ % R$Net revenues 20.9 100.0% 29.0 100.0% 49.8Costs - fixed and variable (9.4) -44.9% (9.4)SG&A (3.4) -16.3% (2.8) -9.6% (6.2)Net revenues of car sold 26.2 90.4% 26.2Book value of car sold (24.8) -85.6% (24.8)EBITDA 8.1 38.7% 1.4 4.7% 9.5Cars Depreciation (1.3) -4.4% (1.3)Others depreciation (0.4) -1.7% (0.2) -0.6% (0.5)Financial expenses (1.7) -6.0% (1.7)Taxes (2.3) -11.1% 0.5 1.9% (1.8)Net Income (Loss) 5.4 25.9% (1.3) -4.4% 4.1
NOPAT 5.3ROIC (it considers the effect of the average book v alue of the car in its useful life) 17.5%Cost of debt after taxes 8.0%
Car Rental SeminovosPer car soldPer operating car
8
Net car salerevenue R$24.4
3 year cycle
Fleet Rental Division - Financial Cycle Per car
Spread9.5p.p.
1 2 3 4 5 6 31 32 33 34 35 36Expenses, interest and tax
Revenue
R$33.3Average car price
Total3 years
R$ % Seminovos % R$Net revenues 55.7 100.0% 26.9 100.0% 82.6Costs - fixed and variable (18.6) -33.4% (18.6)SG&A (3.7) -6.7% (2.5) -9.3% (6.2)Net revenues of car sold 24.4 90.7% 24.4Book value of car sold (21.2) -78.9% (21.2)EBITDA 33.4 60.0% 3.2 11.8% 36.6Cars Depreciation (12.6) -46.9% (12.6)Others depreciation (0.1) -0.2% (0.1) -0.2% (0.2)Financial expenses (4.4) -16.3% (4.4)Taxes (10.0) -17.9% 4.2 15.5% (5.8)Net Income (Loss) 23.3 41.8% (9.7) -36.1% 13.6
Net Income (Loss) - per year 7.8 41.8% (3.2) -36.1% 4.5
NOPAT 5.6ROIC (it considers the effect of the average book v alue of the car in its useful life) 17.5%Cost of debt after taxes 8.0%
Per operating carFleet Rental Seminovos
Per car sold
Raisingmoney Buying
cars
Renting Cars SellingCars
Cash to renew the fleet or pay debt
$
Profitability comes from rental divisions
Competitive advantages
$
9
42 years of experience in managing assets and gener ating value.
Competitive advantages: raising money
Global Scale
National Scale
Localiza raises money with better conditions when c ompared to competitors.
As of May, 2015.
BBB FitchBaa3 Moody’sBBB- S&P
Baa1 Moody ´sBBB+ S&P
B1 Moody ´sB+ S&P
Ba3 Moody ´sBB- S&PBB- Fitch
brAAA S&P Aa1.br Moody’sAAA(bra) Fitch
brAA- S&PA+ (bra) Fitch
brA S&P A- (bra) Fitch
A+ (bra) Fitch A(bra) Fitch
Raisingmoney
Buyingcars Renting Cars Selling
Cars
10
Investment grade: lower spreads and longer tenors
Source: Bloomberg and companies website
11
Competitive advantages: buying cars
Localiza buys cars with better conditions due to th e volume of purchases.
Number of cars purchased - 2014
* Includes Franchising
86,426
22,920 17,246 14,177
Localiza Unidas Movida Locamerica
*
Source: each company website and ANFAVEA
Localiza’s share in the internal sales of themajor OEMs - 2014
3.6%
Raisingmoney
Buyingcars Renting Cars Selling
Cars
108
157
8282
12
The Company is present in 243 cities where the othe r largest networks do not operate.
Competitive advantages: renting cars
Know HowBrand Brazilian distribution 2014
# of
bra
nche
s#
of c
ities
Source: Each company websiteAs of December, 2014
476 402
Raisingmoney
Buyingcars Renting Cars Selling
Cars
Localiza Unidas Hertz Movida Avis
348
105 78 60 42
Localiza Competitors
13
Sales to final consumer
Competitive advantages: selling cars
Selling directly to final consumer reduces deprecia tion.
Cars available for sale are used during peaks of de mand .
Raisingmoney
Buyingcars Renting Cars Selling
Cars
Buffer: additional fleet
7.3%8.6%
6.3% 6.0%8.0% 9.0%
16.9% 17.1% 16.1% 16.5% 17.5%16.2%
2010 2011 2012 2013 2014 1H15*
14
ROIC versus cost of debt after taxes
9.6p.p. 8.5p.p. 9.5p.p.9.8p.p.
ROIC and spread remained at a healthy level.
ROIC Cost of debt after taxes
10.5p.p.7.2p.p.
*Annualized
Localiza Unidas Locamerica Ouro Verde JSL
Localiza Unidas Locamerica Ouro Verde JSL
Localiza vs. playersProfitability
Source: Companies’ Financial Statements.* Includes 19,208 cars from Movida - RAC
15
ROIC 2014
ROE 2014
Frota 125,224 40,296 30,291 25,326 49,429*
13.7%WACC
ReferenceROIC = NOPAT / (Average net debt + average equity)ROE = Net income / Equity at the beginning of the y ear
Consolidated
Consolidated
17.5%
8.1%9.1% 8.5% 7.6%
30.6%
8.2%7.1%10.9%
7.1%
0.8x 1.0x 2.2x
8.5x
3.5x
Localiza Unidas Locamerica Ouro Verde JSL
1.4x 2.2x
3.3x 3.7x 4.2x
Localiza Unidas Locamerica Ouro Verde JSL
16
Net Debt / EBITDA - 2014
Net Debt / Equity - 2014
Source: Companies’ Financial Statements.
Localiza vs. playersDebt ratios
Consolidated
Consolidated
17
1. Company overview
2. Main business divisions
� Car Rental
� Fleet Rental
� Seminovos
3. Financials
Appendix: Earnings release 2Q15
Agenda
18
Car Rental overview
63.9%Compact cars
2014 Fleet composition
77,573 cars
36.1%Others
Corporate fleet size
65,08670,717 77,573 71,525
2012 2013 2014 1H15
Car rental distribution (Brazil)
474 479 476 485
2012 2013 2014 1H15
19
Drivers
Source: BCB and Localiza rates
151180 200
240260 300
350380
415465
510545
622678
724
51%
38%37% 35%
31%27%
22% 20% 18% 16% 15% 15% 13% 13% 12%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Monthly minimum salary (R$) Daily rental price over minimum salary (%)
Car rental affordability
Source: IPEADATA and Localiza’s loyalty program.
4 million
84 millionAdult population(age > 20 years)
Class A+B+C
15 millionAdult population(age > 20 years)
Class A+B
Increasing affordability and low penetration in lei sure trips brings growth opportunities.
20
Drivers
# domestic air traffic passengersIn million
Investments per industry(In billions of Reais)
Source: Exame Magazine, December 2014.
7082 89 90 96
122
2010 2011 2012 2013 2014 2017E
Source: ANAC 2017 estimates: BOEING
The strong pipeline of investments tend to benefit the corporate segment.
Air traffic growth supporting demand at the airport s.
21Source: RAIS and each company’s websiteAs of December 31, 2014
Off-airport market is still fragmented.
Airport locations Off-airport locations
Car Rental Locations in Brazil
Others5,111
22
Market Share – Car Rental 2014
Fleet332,485 cars
Source: ABLA and Companies’ Financial Statements an d estimates.
23.3%
2.4%
6.9%
5.8%2.1%
61.6%
Localiza’s market share is about 2x higher than the 2nd and 3 rd players together.
Movida
Unidas
Franchising
25.7%
Others
Avis
23
1. Company overview
2. Main business divisions
� Car Rental
� Fleet Rental
� Seminovos
3. Financials
Appendix: Earnings release 2Q15
Agenda
24
Number of clients
Fleet Rental overview
35.0%Compact cars
2014 Fleet composition
34,312 cars
65.0%Others
729760 798 793
2012 2013 2014 1H15
End of period fleet
32,104 32,809 34,312 33,217
2012 2013 2014 1H15
25Source: ABLA, Datamonitor and Localiza
Low penetration of rented fleet in Brazil.
Rented fleet penetration
Corporate fleet:4,000,000*
Rented fleet:440,737
34,312
Brazilian Market World
11.0% 8.9%13.3%
16.5%
24.5%
37.4%
46.9%
58.3%
Drivers
*Localiza estimates
Market Share – Fleet Rental 2014
26
Fleet440,737 cars
Source: ABLA, Companies’ Financial Statements and e stimates
7.8%
0.4%
6.9%
6.9%
5.7%
4.9%3.6%
63.9%
Fragmented market with low entry barriers.
8.1%Franchising
Locamerica
JSL
Ouro VerdeUnidas
Others
ALD
27
1. Company overview
2. Main business divisions
� Car Rental
� Fleet Rental
� Seminovos
3. Financials
Appendix: Earnings release 2Q15
Agenda
28
Efficiency gain on car sales
# of points of sale
Car sales – operating data
5566
73 74 75 75
2010 2011 2012 2013 2014 1H15
47,285 50,77256,664
62,64170,621
33,520
2010 2011 2012 2013 2014 1H15
# Number of cars sold (quantity)
29Source: O Estado de São Paulo newspaper, as of 08/1 6/13 (based on researches of Sindipeças) and Globo w ebsite, 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
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 9.410.1
3.3 3.5 3.6 3.6 3.3
30
2.5x 2.5x
2010 2011 2012 2013 2014
2.6x
Brazilian car market: new x used car market and affordability
New cars
Used cars
Source: FENABRAVE (light and commercial cars)
2.6x
Total market of 13.4 million cars.
3.1x
31
2014 Up to 2 years442,257
2014 Brand new3,328,716
2014 Used cars10,051,296
0.7% 1.8% 16.0%
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 • 48,000 (Fenauto) • 4,364 (Anfavea)• +57 (Unidas, Movida,
Locamerica and others).
• 71 (Fenauto)
Main players
32
1. Company overview
2. Main business divisions
� Car Rental
� Fleet Rental
� Seminovos
3. Financials
Appendix: Earnings release 2Q15
Agenda
802.2980.7
1,093.7 1,163.5 1,284.4
628.1 606.4316.7 296.4
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
33
Net Revenues (R$ million)
# Daily Rentals (thousands)
Car Rental Division
The marketing initiatives helped to offset the reduction in rent al demand as a result of lower volume of business trips and aggressive co mpetitive landscape.
10,734 12,794 13,749 14,242 15,416
7,638 7,584 3,865 3,780
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
234 247 272 286 304 310
181 202 202 193 172 17561 47 50 63 64 67
2010 2011 2012 2013 2014 1H15
34
Car Rental network evolution
6 new corporate locations were added to the network in 1H15.
# of car rental locations (Brazil and abroad)
Localiza´s branches - Brazil Franchisees´ branches - Brazil Fr anchisses´ branches - abroad
476 496 524 542 540
+6
+3552
+3
35
Utilization rate evolution – Car Rental Division
2Q15 utilization rate was 69.0%, 2.7p.p. above the rate of 1Q15.
69.1%
68.9%
70.8%
66.8%
69.9%
66.3%
69.0%
2010 2011 2012 2013 2014 1Q15 2Q15
361.1455.0
535.7 575.9 571.9
283.1 298.8140.0 149.9
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
8,0449,603
10,601 10,844 10,363
5,153 5,4842,530 2,739
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
36
Net Revenues (R$ million)
# Daily Rentals (thousands)
Fleet Rental Division
The growth reflects the Company ´s commercial intelligence in exploring market opportunities as well as the synergy of our business platform.
1,910.41,776.5 1,618.8
2,026.2
2,483.2
1,021.5 901.3704.4 552.3
1,321.9 1,468.1 1,520.01,747.3
2,018.2
929.3 1,043.2
443.6 499.2
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
Purchases (includes accessories) Used c ar sales net revenues
Cars purchased Cars sold
37
Net investmentFleet Expansion* (quantity)
The 12.3% Seminovos net revenue growth in 1H15 was mainly due to the increase in the average price of cars s old.
Net Investment in Fleet (R$ million)
65,934 59,950 58,65569,744
79,804
35,06426,851 24,184
16,211
47,28550,772 56,644
62,64170,621
33,338 33,520
15,889 16,071
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
9,178 2,0117,10318,649
309.4 98.8588.6 278.9
* It does not include theft / crashed cars.
9,183
465.0
1,726 (6,669)
8,295 140
92.2 (141.9)260.8
53.1
+12.3%
38
End of period fleetQuantity
The 2.4% reduction in the fleet of Car Rental Divis ion reflects the adjustments in fleet size according to demand.
61,445 64,688 65,086 70,717 77,573 73,281 71,525
26,615 31,629 32,104 32,80934,312 31,814 33,21710,652
12,958 14,54514,233
13,33912,991 12,934
2010 2011 2012 2013 2014 1H14 1H15
98,712109,275 111,735
117,759125,224
Car Rental Fleet Rental Franch ising
118,086 117,676
1,175.3 1,450.0 1,646.7 1,758.9 1,874.0 920.3 913.3 461.0 450.3
1,321.9 1,468.1 1,520.0 1,747.3
2,018.2
929.3 1,043.2
443.6 499.2
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
39
Consolidated net revenuesR$ million
Consolidated net revenues grew 5.8% in 1H15 when c ompared with 1H14.
Rental Used car sales
2,918.13,506.2
3,892.2
2,497.2
3,166.7
1,849.6 1,956.5
904.6 949.5
40
Consolidated EBITDA R$ million
Part of the decrease in Car Rental EBITDA margin o f the Car Rental was compensated by the reduction in depreciation expenses.
649.5821.3 875.6 916.5 969.8
490.6 467.8241.6 223.0
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
(*)From 2012 on, accessories and freight of new cars have bee n accounted directly in the cost line, impacting EBITDAbut reducing depreciation costs.
Divisions 2010* 2011* 2012 2013 2014 1H14 1H15 2Q14 2Q15
Car Rental 45.3% 46.9% 40.9% 36.8% 38.7% 39.1% 32.4% 38.1% 30.3%
Fleet Rental 68.0% 68.6% 66.4% 65.5% 60.0% 61.7% 61.1% 61.5% 62.8%
Rental Consolidated 52.3% 53.8% 49.3% 46.5% 45.3% 46.3% 41. 9% 45.4% 41.3%
Used Car Sales 2.6% 2.8% 4.2% 5.7% 6.0% 7.0% 8.2% 7.3% 7.5%
41
Average depreciation per carin R$
Car Rental
The reduction of depreciation reflects new car pric es’ increase at the dealers.
492 939
333 1,169
2,577
1,536 1,684
1,896
1,452 1,270
599
24,345
25,837 25,648
27,740 26,572
27,174 27,942
25,769
27,785
29,412 30,778
15,0 00
17,0 00
19,0 00
21,0 00
23,0 00
25,0 00
27,0 00
29,0 00
31,0 00
33,0 00
-
1,00 0
2,00 0
3,00 0
4,00 0
5,00 0
6,00 0
7,00 0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H15
Annualized average depreciation per car (R$) Average price of cars purchased - Car Rental
1,377
IPI Effect
2,546 2,076
IPI Effect
3,972
Stable car priceRising car price Rising car price
42
Average depreciation per carin R$
Fleet Rental
2,981 2,383 2,396
2,803
4,372 3,510
4,133
4,311
4,592 4,202 4,118
32,106 33,190 33,754 34,192
30,741
35,414 33,315
35,025 35,693
38,346
45,686
15,0 00
20,0 00
25,0 00
30,0 00
35,0 00
40,0 00
45,0 00
-
2,00 0
4,00 0
6,00 0
8,00 0
10,0 00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H15
Annualized average depreciation per car (R$) Average price of cars purchased - Fleet Rental
2,280
IPI Effect
5,0831,097
IPI Effect
5,408
Stable car priceRising car price Rising car price
The reduction in depreciation reflects new car pric es’ increase at the dealers.
The increase in the price of purchased cars also re flects a change in the fleet mix.
43
EBIT Divisions 2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
Car Rental 309.2 380.8 259.0 381.4 464.6 232.2 221.6 113.4 101.7
Franchising 6.2 7.2 8.9 10.9 8.7 5.1 3.3 2.1 1.7
Fleet Rental 166.7 207.7 197.9 259.8 253.4 131.9 140.6 68.9 76.0
Consolidated 482.1 595.7 465.8 652.1 726.7 369.2 365.5 184. 4 179.4
Consolidated Margin 41.0% 41.1% 28.3% 37.1% 38.8% 40.1% 40. 0% 40.0% 39.8%
38.5% 38.8%
23.7%32.8%
36.2%36.5%
46.2% 45.6%
36.9%
45.1% 44.3%47.1%
2010 2011 2012 2013 2014 1H15
Car Rental
Fleet Rental
EBIT of Car Rental and Fleet Rental contemplates Seminovos r esults.*2012 EBIT was impacted by R$144.5 million of additional dep reciation related to IPI (sales tax) reduction.
EBIT Margin calculated over rental revenues
In this industry, EBIT margin is the indicator that best reflects the operating results.
IPI Effect
250.5291.6
240.9
384.3 410.6
206.4 193.6
100.6 93.4
2010 2011 2012 2013 2014 1H14 1H15 2Q14 2Q15
44
Consolidated net incomeR$ million
* Pro forma 2012 net income excluding additional depreciation related to the IPI tax reduction, net of income tax.
336.3 *
In 2Q15, the increase of the interest rates impacte d financial expenses in R$ 8.9 million (R$ 6.0 million after tax).
Net income variation – 2Q14 to 2Q15 (In R$ million)
2Q14 net
income
100.6
EBITDA
-18.6
Depreciation
13.6
Subtotal
95.6
Interest
-8.9
Income tax
6.7
2Q15 net
income
93.4
The drop of R$18.6 million in EBITDA was largely compens ated bylower depreciation expenses of R$13.6 million.
++
46
Free cash flow - FCFFree cash flow - R$ million 2010 2011 2012 2013 2014 1H15
Ope
ratio
ns
EBITDA 649.5 821.3 875.6 916.5 969.8 467.8
Used car sale revenue, net from taxes (1,321.9) (1,468.1) (1,520.0) (1,747.3) (2,018.2) (1,043.2)
Depreciated cost of cars sold 1,203.2 1,328.6 1,360.2 1,543.8 1,777.0 889.3
(-) Income tax and social contribution (57.8) (83.0) (100.9) (108.5) (113.1) (56.1)
Change in working capital 54.5 (83.9) 37.1 2.9 (27.1) (29.5)
Cash provided by rental operations 527.5 514.9 652.0 607.4 588.4 228.3
Cap
ex -
Ren
ewal
s
Used car sale revenue, net from taxes 1,321.9 1,468.1 1,520.0 1,747.3 2,018.2 835.6
Fleet renewal investment (1,370.1) (1,504.5) (1,563.3) (1,819.7) (2,197.7) (901.3)
Net investment for fleet renewal (48.2) (36.4) (43.3) (72.4) (179.5) (65.7)
Fleet renewal – quantity 47,285 50,772 56,644 62,641 70,621 33,520
Investment, other property and intangibles investm ents (50.6) (59.9) (77.8) (47.5) (46.3) (10.5)
Free cash flow before growth, new headquarters and interest 428.7 418.6 530.9 487.5 362.6 152.1
Cap
ex -
Gro
wth
Fleet growth investment (540.3) (272.0) (55.5) (209.4) (286.8) -
Cash generated by fleet reduction - - - - - 207.6
Change in accounts payable to car suppliers 111.3 32.7 (116.9) 89.7 334.4 (268.2)
Fleet growth (429.0) (239.3) (172.4) (119.7) 47.6 (60.6)
Fleet increase / (reduction) – quantity 18,649 9,178 2,011 7,103 9,183 (6,669)
Free cash flow after growth, and before interest an d new HQ (0.3) 179.3 358.5 367.8 410.2 91.5
Cap
ex–
HQ
Investment in the construction of the new HQ (0.5) (3.1) (2.4) (6.5) (55.7) (46.3)
Marketable securities – new HQ - - - - (92.6) -
New headquarters construction (0.5) (3.1) (2.4) (6.5) (148.3) (46.3)
Free cash flow before interest (0.8) 176.2 356.1 361.3 261.9 45.2
359.7
47
- 1,469.5
(99.4)Interest
Net debt06/30/2015
Cash generationbefore OEMsand new HQ
359.7
-1,322.3
Net debt12/31/2014
(84.0)Dividends
(46.3)New
headquarters
Changes in net debt R$ million
The reduction in the balance payable to OEMs is lar gely due to thepayment of 4Q14’s car purchases anticipation.
(268.2)OEMs
9.0Treasuryshares
purchasedAnticipationof cars
purchase in 4Q14.
2,446.7 2,681.7 2,547.6
2,797.9 3,296.3 3,217.1
2010 2011 2012 2013 2014 1H15
48
Debt - ratiosNet debt + OEMs vs. Fleet value
BALANCE AT THE END OF PERIOD 2010(*) 2011 2012 2013 2014 1H15
Net debt + OEMs / Fleet value 68% 66% 60% 61% 62% 59%
Net debt / Fleet value 52% 51% 48% 48% 40% 46%
Net debt / EBITDA** 2.0x 1.7x 1.4x 1.5x 1.4x 1.6x
Net debt / Equity 1.4x 1.2x 0.9x 1.0x 0.8x 0.8x
EBITDA / Net financial expenses 5.0x 4.6x 6.3x 8.3x 6.4x 4.7x(*) 2010 ratios based on USGAAP financial statemen ts
**Annualized
OEMs Net debt Fleet val ue
Comfortable debt ratios.
1,281.1 1,363.4 1,231.2 1,332.8 1,322.3 1,469.5
372.6 405.3 288.4 378.1 712.5 444.3 1,653.7 1,768.7 1,519.6 1,710.9
2,034.8 1,913.8
120.4 288.7 370.8
221.1
594.5 595.0 447.5
2015 2016 2017 2018 2019 2020 2021
49
Debt maturity profile (principal)R$ million
Strong cash position and comfortable debt profile.
Cash*
1,001.0
As of June 30, 2015
1,321.8
* R$ 1,223.6 refers to cash and R$ 98.2 refers to Marketable Securities.
50
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 Americ as
�ADR broker helpline: +1 212 250 9100 (New York)
+44 207 547 6500 (London)
�E-mail: [email protected]
�ADR website: www.adr.db.com
�Depositary bank’s local custodian: Banco Bradesco S/A , Brazil
51
Disclaimer
Website: www.localiza.com/ir E-mail: [email protected] m Phone: 55 31 3247-7024
Roberto MendesCFO and IR
Nora LanariHead of IR
Eugênio MattarCEO
The material presented is a presentation of general backgro und information about LOCALIZA as of the date of the presenta tion. It is information in summaryform and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. No represen tation or warranty, express orimplied, is made concerning, and no reliance should be place d on, the accuracy, fairness, or completeness of the informa tion presented herein.
This presentation contains statements that are forward-lo oking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of theSecurities Exchange Act of 1934. Such forward-looking stat ements are only projections and are not guarantees of future performance. Investors are cautionedthat any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and fac tors relating to the operations andbusiness environments of LOCALIZA and its subsidiaries tha t may cause the actual results of the companies to be material ly different from any future resultsexpressed or implied in such forward-looking statements.
Although LOCALIZA believes that the expectations and assum ptions reflected in the forward-looking statements are rea sonable based on informationcurrently available to LOCALIZA’s management, LOCALIZA ca nnot guarantee future results or events. LOCALIZA expressl y disclaims a duty to update any ofthe forward-looking statement.
Securities may not be offered or sold in the United States unl ess they are registered or exempt from registration under th e 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 anythingcontained herein shall form the basis of any contract or commitment whatsoever.
Maria Carolina CostaIR Manager
Mariana CampolinaIR Manager
