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1December / 2011
2
1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.2012 Brazilian Macroeconomic scenario
Agenda
3
Company: integrated business platform
This integrated business platform gives Localiza flexibility and superior performance.
Synergies:
bargaining power
cost reduction
cross selling
� 12,285 cars
� 195 locations in Brazil
� 46 locations in South America
� 32 employees
� 75.4% sold to final consumer
� 61 stores
� 822 employees
� 57,077cars
� 2.7million clients
� 240 locations
� 3,810 employees
� 30,732 cars
� 693 clients
� 293 employees
Based on the 3Q11
4
Company: stable management
Salim Mattar – 38y
Eugênio Mattar – 38y
Gina Rafael – 30y
João Andrade – 7y
Marco Antônio Guimarães – 21y
Bruno Andrade – 19y
BOARD OF DIRECTORS
CEO
COO
Car Acquisition
Legal
Localiza has a lean and efficient structure.
The succession process is already planned.
Roberto Mendes – 26y
Financial ITHuman
ResourcesAdministration
Daltro Leite – 26y
5
Company: financial cycle – car rental
Net car sale revenue$25.5
$26.6Car acquisition
1 2 3 4 5 8 9 10 11 12Expenses, interest and tax
1-year cycle
Revenue
Spread9.8p.p.
Total
1 year
R$ % R$ % R$
Revenues 19.5 100.0% 27.9 100.0% 47.4
Cost (8.2) -42.2% (8.2)
SG&A (2.8) -14.5% (2.3) -8.4% (5.2)
Net car sale revenue 25.5 91.6% 25.5
Book value of car sale (24.7) -90.0% (24.7)
EBITDA 8.5 43.4% 0.8 2.9% 9.3
Depreciation (vehicle) (1.5) -5.5% (1.5)
Depreciation (non-vehicle) (0.4) -1.8% (0.1) (0.5)
Interest on debt (2.0) -7.2% (2.0)
Tax (2.4) -12.1% 0.7 2.5% (1.6)
NET INCOME 5.8 29.5% (2.2) -7.7% 3.6
NOPAT 5.1
ROIC 17.7%
Cost of debt after tax 7.9%
Car Rental Seminovos
per operating car per operating car
*
* Investment in cars and PP&E (8%)
6
Company: financial cycle – fleet rental
Total
2 anos
R$ % R$ % R$
Revenues 32.7 100.0% 29.0 100.0% 61.7
Cost (9.4) -28.9% (9.4)
SG&A (1.8) -5.6% (2.2) -7.7% (4.1)
Net car sale revenue 26.8 92.3% 26.8
Book value of car sale (26.5) -90.0% (26.5)
EBITDA 21.4 65.6% 0.3 1.0% 21.7
Depreciation (vehicle) (7.0) -24.2% (7.0)
Depreciation (non-vehicle) (0.1) -0.2% (0.1)
Interest on debt (3.8) -12.9% (3.8)
Tax (6.2) -19.0% 3.1 10.8% (3.1)
NET INCOME 15.2 46.4% (7.3) -25.3% 7.8
NET INCOME per year 7.6 46.4% (3.7) -25.3% 3.9
NOPAT (annualized) 5.1
ROIC 15.2%
Cost of debt after tax 7.9%
Fleet Rental Seminovos
per operating car per operating car
33.8Car acquisition
Net car sale revenue
26.8
1 2 3 4 5 20 21 22 23 24
2-year cycle
Expenses, interest and tax
Revenue
Spread7.3p.p.
7
Average growth of 25.0% p.a. in the last six years
Company: growth and profitability track record
Revenues consolidated
EBITDA consolidated
331.4 408.4 537.4 655.0 842.9 898.51,175.3
1,409.9303.0
446.5588.8
850.5980.8 922.4
1,321.9
1,450.7
515.7457.4402.7296.1234.1225.9212.9
1997 1999 2001 2003 2005 2007 2009 2011
annualized
CAGR: 24.0%
CAGR: 16.5%
634.4854.9
1,126.2
1,505.5
1,823.7 1,820.9
2,497.2
2,860.6
Consolidated Rentals Used car sales
CAGR: 23.2%
4.3
42 62 85.2 134.3 154 149.9 152.1 197.8278.1 311.4
403.5504.1 469.7
649.5804.0
1997 1999 2001 2003 2005 2007 2009 2011
annualized
CAGR: 23.9%
CAGR: 23.1%
-0.6 7.55.7 3.2 4.0 6.1 5.2
1.9Average
1.12.71.34.30.30.03.4GDP 3.3
8
Rental revenues growth elasticity x GDP
2005 2006 2007 2008 2009 2010
5.5x
Consolidated Localiza
GDP
Sector
2.8x
Company: GDP elasticity
The drivers combined with Localiza’s competitive advantages resulted in a growth above the industry level.
9
18.9%20.6% 20.8% 21.8% 21.4%
23.5%
2005 2006 2007 2008 2009 2010
Company: market share - Fleet
Consolidated
Source: ABLA 2011 yearbook
37.5% 12.5%
Car Rental division Fleet Rental division
10
1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.2012 Brazilian Macroeconomic scenario
Agenda
11
Drivers and growth opportunities
12Source: Each company website (October, 2011)
Car rental opportunities: consolidation
Off-airport market is still fragmented.
Avis
32
Unidas
70
Localiza
336 Hertz
83
Others
2004
Outras
22Avis
35
Unidas
27
Localiza
99
Hertz
36
Airport locations Off-airport locations
Car rental locations in Brazil
13
Network expansion
39Total
BranchesLast 12 months*
23Franchised
16Owned
The network is still being expanded.
Brazilian distribution
# of locations in Brazil
279 312 346 381 415 435
254
2005 2006 2007 2008 2009 2010 9M11
Strategy: organic growth
*as of September, 2011
14
R$456 bn to be invested.
Car rental drivers: investments
Source: EXAME yearbook, 2011-2012
18.4%
Invested
To be invested
19.5%
R$174.6 bn
12.3%
R$150.4 bn
20.8%
R$85.8 bn
R$28.7 bn
18.7%
R$16.8 bn
154137
106
38
7 6 35
Oil/
gasTra
nsporta
tion
Elect
ricity
Wat
er/s
ewag
e
Telec
omm
unicat
ion
Arenas
Oth
ers
Housi
ng
Investments by sectorInvestments in Brazil
15
Income increase and stable daily rental rates increased car rental affordability.
Car rental drivers: income and affordability
GDP per capita
(R$ thousands)
151
260
465510
240180 200
350
415380
300
18% 16%
31%
35%
15%
37%38%
51%
22% 20%
27%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Monthly minimum salary (R$) Daily rental price over minimum salary (%)
Car rental affordability
Source: Exame magazine (Dec/2010)
6.9 7.5 8.4 9.510.7 11.7
12.814.2
16.0 16.619.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
16
28%
27%
38%
7%
15%
23%
51%
11%
8%
20%
57%
16%
2003 2009 2014e
15
45 51
2003 2009 2010
Strong domestic drivers leads to higher volumes.
Source: FGV, BCB, Infraero, Gol, Abecs and Exame (Dec/2010)
Car rental drivers: consumption
71
128154
2003 2009 2010
80.3% 20.3%
200.0% 13.3%
Social class breakdown - %
C
D
E
A/B
Air traffic passengers - million Credit card holders - million
Total population 175,000,000 188,000,000 200,000,000
17Source: ABLA and Datamonitor
Fleet rental drivers: outsourcing trend
Less than 50% of targeted fleet is rented.
Outsourced fleet penetration
Corporate fleet:4,200,000
Targeted fleet:500,000
Rented fleet:232,000
30,732
Brazilian Market World (%)
5.48.9
13.316.5
24.5
37.4
46.9
58.3
Bra
zil
Poland
Cze
ch R
epublic
Ger
man
y
France
Spain Uk
Holla
nd
18
Income increase and credit availability are the major drivers for car sales.
Source: Bradesco, ANFAVEA, PIB per capita: IPEADATA.
Used car sales drivers: affordability and penetration
Car purchase affordability
6.5
3.6
1.8
1.8
1.7
1.5
1.2
Brazil
Mexico
Germany
UK
France
Italy
USA
# of inhabitants per car (2009)
148 128115
97 10493
80
56586875
151180 200
240 260300
350
510465
380415
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0
1 4 0
1 6 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0
1 0 0
2 0 0
3 0 0
4 0 0
5 0 0
6 0 0
Number of minimum w ages to buy a new car Monthly minimum salary (R$)
8.0 7.9
7.4
6.9
6.5
2005 2006 2007 2008 2009
# of inhabitants per car - Brazil
19
3,329,1703,009,482
2,671,3382,342,0591,830,4021,620,657
2005 2006 2007 2008 2009 2010
8,429,309
7,071,5257,016,576
6,743,6997,114,870 7,260,054
4.3x 3.7x 3.0x 2.7x2.3x
2.5x
Brazilian market: new cars x used cars
New cars X used cars
New cars Used cars
Source: FENABRAVE (Autos + light commercial)
Used car market is currently 2.5x the new car market.
20
0km SeminovosUsed Seminovos 3 years old Seminovos
1.4% 4.4%
Up to 3 yearsUp to 3 years
1,093,2811,093,281
Used car sales: 2010 market share
Source: Fenabrave 2010
0KM0KM
3,329,1703,329,170
0.6%
UsedUsed
8,429,3098,429,309
Share: Localiza used cars x Car market
Used cars sold: 47,285
21
Used car sales: monthly sale per store
Seminovos monthly sale per store is in line with market average.
10996 91 90
84 84 81
48
FIAT VW FORD GM SEMINOVOS* SECTOR
2010**
RENAULT PEUGEOT
Monthly sale / lots*
Source: Anfavea (National OEM’s Association); number of dealers from each OEM association website (nov/11 )
* Average sales per lots (excluding auto malls – 10 stores)
** Total sales divided by the number of dealers
22
The network is being expanded to support rentals’ growth.
Brazilian distribution New lots
3Contract signed
Points of sale
Status*
11Negotiation and prospection
6In construction
# of points of sale
26 32 3549 55 61
13
2005 2006 2007 2008 2009 2010 9M11
Used car sales strategy: network expansion
*as of September, 2011
23
61%49% 57% 58%
39%51% 43% 42%
2010 1Q11 2Q11 3Q11
3,9403,860
4,159
4,545
2010 1Q11 2Q11 3Q11
Used car sales: sold cars evolution
The increase on sales was supported by the opening of new points of sale.
Sales profile
Financed In cash
Monthly average of sold cars
The macro prudential measures impacted the sales profile in the 1Q11.
24
1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.2012 Brazilian Macroeconomic scenario
Agenda
25
Raising money
Renting cars Selling carsBuying
cars
Cash to renew the fleet or pay debt
$
$
Profitability comes from rental divisions
Pricing strategy from rental divisions: targeted spread.
38 of experience managing assets
26
Competitive advantages: raising money
BBB- FitchBaa3 Moody’s
BBB+ S&P B+ S&P B+ Fitch B2 Moody'sGlobal Scale
BBB+ (bra) FitchAa1.br Moody’sAA+(bra) Fitch
A (bra) Fitch A- (bra) FitchNational Scale
Investment grade: lower spreads and longer terms
Localiza raises money with lower spreads when compared to Brazilian competitors.
As of October, 2011.
Renting carsRaisingmoney
Sellingcars
Buyingcars
27
Fiat
25.6%GM
37.0%
Renault
3.1%
Ford
4.3% Others
2.8%
VW
27.2%
2.8%
Competitive advantages: buying cars
Better conditions due to higher volumes
Localiza announced the purchase of 100,000 cars for 2H11 and 2012.
Localiza’ share in national sales of the three largest automakers in 2010: GM, FIAT, VW
Purchases by brand in 2010
Renting carsRaisingmoney
Buyingcars
Sellingcars
28
The Company is present in 217 cities where the other largest networks do not operate.
Competitive advantages: renting cars
Know HowBrand Brazilian distribution
119
96
67
289
64 7246
# o
f b
ran
ch
es
# o
f cit
ies
435
282
Localiza Hertz Unidas Avis
Source: Each company website (October, 2011)
Renting carsRaisingmoney
Buyingcars
Sellingcars
29
Sales to final consumer
Competitive advantages: selling cars
Buffer: additional fleet
Selling directly to final consumer reduces depreciation.
Cars available for sale are used by the car rental division during peaks of demand.
Renting carsRaisingmoney
Buyingcars
Sellingcars
30
1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.2012 Brazilian Macroeconomic scenario
Agenda
31
Car Rental Division
Average rental rate increased due to a change in the business mix and better negociations.
# daily rentals (thousand)
Net revenues (R$ million)
3,4114,668
5,793
7,940 8,062
10,734
7,720
9,470
2,863 3,227
2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11
CAGR: 25.8%
22.7%
12.7%
241.8208.7
714.2
566.6
802.2
585.2565.2
428.0346.1
258.6
2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11
CAGR: 25.4%26.1%
15.9%
32
3Q comps are higher in the car rental due to the effects of 2010 elections.
1Q 2Q 3Q 4Q
2009
2010
2011
+29.3%+27.8%
+23.4%
Excluding effects of election
Quarterly evolution of the number of rental days
33
Fleet Rental Division
Growth in rental rate derived from the increase in basic interest rate.
# daily rentals (thousand)
Net revenues (R$ million)
117.4142.0
184.0219.8
268.4 303.2361.1
260.2
332.9
92.9
2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11
CAGR: 20,5%
27,9%
26,4%
3,3514,188
5,1446,437
7,0998,044
5,8627,086
2,046 2,461
2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11
CAGR: 19.1%
20.9%
20.3%
34
Net Investment
Flexibility in the car purchase to adjust fleet to demand.
Fleet increase * (quantity)
7,342 10,3467,957
18,649
9,930 8,642
Purchased cars Sold cars
243.5341.5
210.4354.5 281.8
588.5
Purchases (accessories included) Used car sales revenues
Net investment (R$ million)
26,10533,520
38,05044,211 43,161
9,493
18,76323,174
30,093 34,281 34,519
12,859 13,635
38,16040,607
17,798
65,934
37,694
47,285
34,486
2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11
690.0930.3
1,060.91,335.3 1,204.2
1,910.4
1,199.6
521.7294.2
446.5588.8
850.5 980.8 922.4
1,321.9
939.6
354.2 394.6
1,119.81,088.0
2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11
6,121 466
4,939 (4,142)
260.0 31.8
167.5 (100.4)
35
Utilization rate and average operating fleet age
Fleet is adjusted according to demand.
66.2% 69.9% 68.2% 68.9% 69.7%66.3%
74.1%
6.9 6.6 6.35.5
6.3 6.57.3
0 .0 %
1 0 .0 %
2 0 .0 %
3 0 .0 %
4 0 .0 %
5 0 .0 %
6 0 .0 %
7 0 .0 %
8 0 .0 %
9 0 .0 %
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Utilization rate Average operating fleet age
Elections effect
Utilization rate and average operating fleet age
36
31,373 35,686 39,112 47,51761,445 50,450 57,07711,762
14,630 17,79023,403
22,778
26,61525,305
30,732
24,103
2005 2006 2007 2008 2009 2010 9/30/2010 9/30/2011
End of period fleet
The 15.9% growth in the fleet is in line with the rental volume increase.
End of period fleet (quantity)
CAGR: 19.7%
35,86546,003 53,476
62,51570,295
88,060
Car rental Fleet rental
87,80975,755
15.9%
37
Consolidated net revenuesR$ million
Rental and Seminovos’ increase in volumes and prices resulted in higher revenues.
408.4 537.4 655.0 842.9 898.51,175.3
835.51,057.4
304.6 362.9
446.5588.8
850.5980.8 922.4 939.6
1,088.0
354.2 394.6
1,321.9
2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11
Rentals Seminovos
CAGR: 23.9%
854.91,126.2
1,505.5
1,823.7 1,775.11,820.9
2,145.42,497.2
658.8757.5
20.9%
15.0%
19.1%
26.6%
38
277.9 311.3403.5
504.1 469.7
649.5
461.3
603.0
178.7 216.2
2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11
EBITDA R$ million
The 30.7% growth in the EBITDA in the 9M11 was above the rental revenues increase.
CAGR: 18.5%
2.3%
52.7%
67.4%
45.9%
9M10
3.1%
53.8%
68.9%
46.9%
9M11
2.6%
52.3%
68.0%
45.3%
2010
5.6%
53.3%
69.1%
45.9%
2008
57.5%54.8%51.1%54.5%52.9%53.6%Rentals consolidated
1.9%
72.1%
50.4%
3Q11
3.4%
68.9%
48.7%
3Q10
1.1%
68.7%
41.9%
2009
4.6%
71.4%
43.4%
2006
5.5%
71.3%
46.0%
2007
13.2%Used car sales
65.5%Fleet Rental
47.5%Car rental
2005Divisions
30.7%
21.0%
39
Average depreciation per carR$
Hot used car market
Financial crisis effectCurrent market conditions
1,536.0 1,619.8 1,578.5
332.9
2,546.0 2,577.0
939.1492.3
2005 2006 2007 2008 2009 2010 9M10 9M11
* Annualized
* *
1,318.01,580.51,492.3
1,251.9
1,942.5 1,993.2
1Q10* 1Q11* 2Q10* 2Q11* 3Q10* 3Q11*
Depreciation evolution - per year
The launching of new models increases 3Qs depreciation.
Average depreciation per car remained stable in the year.
Depreciation evolution - per quarter
* Annualized
40
Average depreciation per carR$
3,509.7 3,306.04,080.9
2,395.8
5,083.14,371.7
2,383.32,981.3
2005 2006 2007 2008 2009 2010 9M10 9M11
* Annualized
* *
3,254.43,693.9
4,241.83,990.6
2,989.4
4,020.8
1Q10* 1Q11* 2Q10* 2Q11* 3Q10* 3Q11*
Hot used car market
Financial crisis effect
The fleet renewal after the end of the tax exemption resulted in higher depreciation.
Depreciation evolution - per year
Depreciation evolution - per quarter
* Annualized
41
Consolidated net incomeR$ million
181.1
(71.7)
(88.8)
(15.4)
(104.3)
461.3
21.3
440.0
9M10
212.9
(91.4)
(137.8)
(17.4)
(143.5)
603.0
33.7
569.3
9M11
31.8
(19.7)
(49.0)
(2.0)
(39.2)
141.7
12.4
129.3
Var. R$
134.2
(54.3)
(17.2)
(0.1)
26.0
179.8
23.8
156.0
Var. R$
116.3
(47.2)
(112.9)
(21.0)
(172.3)
469.7
10.6
459.1
2009
250.5
(101.5)
(130.1)
(21.1)
(146.3)
649.5
34.4
615.1
2010
37.5216.2178.7EBITDA Consolidated
0.4
(2.8)
(18.4)
0.1
(16.0)
(4.3)
41.8
Var. R$
75.374.9Net income
(32.2)(29.4)Income tax and social contribution
(49.8)(31.4)Financial expenses, net
(5.0)(5.1)Other property and equipment depreciation
(53.9)(37.9)Cars depreciation
7.611.9EBITDA – Used car sales
208.6166.8EBITDA – Rentals and franchising
3T113T10Reconciliation EBITDA x net income
2011 results were impacted mainly due to interest rate increase.
75.374.9
212.9181.1
250.5
116.3127.4
190.2138.2
106.5
2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11
0.5%
17.6%
42
Free cash flow - FCF
Strong cash flow generation before growth.
(*) without technical discount deduction
18,649
(0.8)
111.3
(540.3)
428.2
(51.1)
(48.2)
(1,370.1)
1,321.9
527.5
54.5
(57.8)
1,203.2
(1,321.9)
649.5
2010
4668,6429,9307,95710,3467,342Fleet increase - quantity
107.8
(195.8)
(13.7)
317.3
(37.4)
(18.1)
(1,106.1)
1,088.0
372.8
(59.4)
(57.3)
974.5
(1,088.0)
603.0
9M11
295.4
241.1
(241.1)
295.4
(21.0)
(25.5)
(947.9)
922.4
341.9
(11.5)
(49.0)
855.1
(922.4)
469.7
2009
(283.1)
(188.9)
(299.9)
205.7
(39.9)
(54.6)
(1,035.4)
980.8
300.2
(44.8)
(52.8)
874.5
(980.8)
504.1
2008
(22.2)53.2 (161.3)Free cash flow after growth and before interest
(51.0)222.0 (25.5)Change in accounts payable to car suppliers (capex)
(221.9)(287.0)(194.0)Capex of car - growth
250.7 118.2 58.2 Free cash flow before growth and interest
(23.7)(32.7)(28.0)Capex – other property and equipment, net
11.5 (54.5)(49.5)Net capex for renewal
(839.0)(643.3)(496.0)Capex of car - renewal
850.5 588.8 446.5 Used car sales net revenues
262.9 205.4 135.7 Cash provided before capex
13.3 (4.8)(24.2)working capital variation
(63.4)(42.7)(32.7)(-) Income tax and social contribution
760.0 530.4 361.2 Depreciated cost of used car sales (*)
(850.5)(588.8)(446.5)Used car sales net revenues
403.5 311.3 277.9 EBITDA
200720062005Free cash flow - R$ million
43
Debt – ratiosR$ million
Comfortable debt ratios.
4.4x 5.0x 4.2x 3.8x 5.4x 4.8x 3.3x EBITDA / Net financial expenses
1.4x
2.0x
191%
2010
1.5x
2.3x
177%
2009
2.0x
2.5x
140%
2008
1.3x1.3x0.7x1.4xNet debt / Equity
1.7x1.9x1.4x1.9xNet debt / EBITDA (*)
175%195%283%168%Fleet value / Net debt
9M11200720062005End of period balance
(*) annualized
Fleet; 2,410.5
Cash; 564.6
Debt; 1,846.0
Balance sheet, as of 09/30/11
Net debt; 1,281.4
Other assets; 572.0
Other liabilities; 620.6
Equity; 1,080.5
Assets Liability and equity
44
Debt profile and costs R$ million
6 years term for debt payment.
207.7 230.3299.8 249.3
514.0372.0
0.7
2011 2012 2013 2014 2015 2016 2017
Cash564.6
-
-
-
TJLP + 3.8%pa / CDI + 2.3%pa
CDI +1.95%pa
112.8% of CDI
112.0% to 114.0% of CDI
CDI + 0.44%pa
108.7% to 114.7% of CDI and
CDI+1.44%a.a.
Contract rate
500.0250.0250.0-----114.5% of CDIDebenture 5th Issuance
400.0--100.0100.0100.0100.0 -CDI + 2.0%paDebenture 1st Issuance: Total Fleet
(564.6)------(564.6)-Cash and cash equivalents on 09/30/11
76.0------76.0-Interests accrued until 09/30/11, net of interest paid
1,385.2372.0 514.0 249.3 299.8 230.3207.7 (487.9)-Net debt
3.8----1.0 2.1 0.7 TJLP + 3.8%pa /
CDI + 2.3%paOther
370.0 122.0 74.0 63.0 63.0 24.0 24.0 -114.2% of CDIDebenture 4th Issuance
200.0 ---66.8 66.6 66.6 -CDI + 0.6%paDebenture 2nd Issuance
400.0-190.0 86.370.0 38.715.0 -111.1% - 114.7%
of CDI and CDI+1.79%a.a.
Working capital
Total2017201620152014201320122011Effective cost
45
16.9%
8.9%13.6%
10.9%8.4% 8.2% 7.8% 7.8%
16.9%11.5%
24.8%
18.7%21.3%
17.0%
2005 2006 2007 2008 2009 2010 9M11
Interest on debt after tax ROIC
Spread
Spread of 8.0p.p. in 2011.
8.0
8.9%
16.9%
0.58x
29.2%
2,428.8
9M11
9.1
7.8%
16.9%
0.59x
28.6%
1,984.6
2010
8.8
8.2%
17.0%
0.53x
32.1%
1,642.3
2008
3.7
7.8%
11.5%
0.53x
21.9%
1,702.3
2009
12.97.811.2Spread (ROIC – Interest after tax) - p.p.
8.4%10.9%13.6%Interest on debt after tax
21.3%18.7%24.8%ROIC
0.58x0.55x0.67xTurnover of average capital investment (over rental net revenues)
36.9%34.5%37.0%NOPAT margin (over rental net revenues)
1,137.5 986.2 606.3 Average capital investment - R$ million
200720062005
11.2p.p.
7.8p.p. 12.9p.p.8.8p.p.
3.7p.p.9.1p.p. 8.0p.p.
*
* Annualized
46
1.The Company
2.Drivers and opportunities
3.Competitive advantages
4.Financials
5.2012 Brazilian Macroeconomic scenario
Agenda
47
Macroeconomic scenario
Opportunities
� crisis opened space for reduction in Selic rate
� monetary policy: deposit requirement and macro prudential measures
� infrastructure investments with private partnership
� investment in education
Threats
� increase in inflation
� indexation
� household indebtness
� increase in default
Weaknesses
� deficient infrastructure
� low educational standards
� high tax burden
� bureaucracy
Strengths
� solid financial system
� high compulsory deposit
� low standards of unemployment
� robust international reserve
� primary surplus
Source: IMF / BCB / Bradesco / Itaú / Citi / Valor Econômico
7.5%
3.2% 3.5%
2010 2011E 2012E
GDP
5.9%6.5%
5.6%
2010 2011E 2012E
CPI - IPCA
9.7%11.8%
10.5%
2010 2011E 2012E
Selic rate
48
IR Team
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’smanagement, 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 hereinshall form the basis of any contract or commitment whatsoever.
Nora LanariRoberto Mendes Silvio Guerra
CFO - RI RI RI
Website: www.localiza.com/ir E-mail: [email protected] Phone: 55 31 3247-7024
