Post on 14-Jun-2015
description
September, 2014
Localiza Rent a Car S.A. Institutional Presentation
1
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Consolidated
4. Debt and cash
5. Webcast 2Q14
6. Appendix
Earnings release 2Q14
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
06/30/2014 – Market cap of US$3.5 bi
with ADTV of R$40.2 million
1973 1982 1983 2004 2005 2014
3
Company: integrated business platform
Synergies:
bargaining power
cost reduction
cross selling
12.991 cars
169 locations in Brazil
64 locations in South
America
34 employees
57.1% sold to final
consumer
74 stores
998 employees
73,281 cars
4.1 million clients
301 locations
4,377 employees
31,814 cars
778 clients
367 employees
This integrated business platform gives Localiza flexibility and superior performance.
Based on the 2Q14 4
Car Rental Fleet Rental
Seminovos Franchising
Franchising
Supplementary business,
with the purpose to
expand the brand’s
network.
Franchising is seen as a
primarily strategic
business by management
– the revenues generated
are low, however brand
and network expand at
minimum capital
expenditure.
Company: Business platform divisions
Car Rental
Localiza car rental rents
to individuals or
businesses at airports
and other locations.
The traditional backbone
of Localiza. With its giant
fleet that gets renewed
annually, it lays the
foundation for all scale
effects captured by the
group as a whole.
Fleet Rental
Offering customized fleet
for 2-3 years terms.
Localiza Fleet is seen as
an additional business
that generates value by
leveraging synergies
created by the integrated
platform approach.
Used car sales
Support area, with the
objective to sell the
Company’s used cars
and add know-how in
buying cars and
estimating the residual
value.
As a support business
activity, Seminovos
enables the sell roughly
60% of used cars directly
to the final customer,
thereby maximizing the
residual value of used
rental cars.
5
Total
1 year
R$ % Seminovos % R$
Net revenues 19,7 100,0% 28,1 100,0% 47,8
Costs - 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% 25,5
Book value of car sold (24,1) -85,8% (24,1)
EBITDA 7,3 36,8% 1,4 4,9% 8,6
Cars 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 4,6
ROIC 17,1%
Cost of debt after taxes 6,0%
Car Rental Seminovos
Per car soldPer operating car
6
Net car sale
revenue
R$25.5 1 year cycle
Car Rental Financial Cycle
Per car
R$27.0
Car acquisition
1 2 3 4 5 6 7 8 9 10 11 12 Expenses, interest and tax
Revenue
Spread
11.1p.p.
Total
2 years
R$ % Seminovos % R$
Net revenues 36,9 100,0% 26,7 100,0% 63,7
Costs - 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% 24,4
Book value of car sold (23,1) -86,2% (23,1)
EBITDA 24,2 65,5% 1,3 4,9% 25,5
Cars 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 5,7
ROIC 17,1%
Cost of debt after taxes 6,0%
Per operating car
Fleet Rental Seminovos
Per car sold
7
Net car sale
revenue
R$24.4 2 year cycle
Fleet Rental Financial Cycle
Per car
Spread
11.1p.p.
R$33.3
Car acquisition
1 2 3 4 5 6 19 20 21 22 23 24 Expenses, interest and tax
Revenue
535,5 643,8
788,7 934,7
1.150,7 1.160,4
1.462,8 1.699,2
1.802,5 1.821,8
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Rental revenues evolution
3.794,9 3.726,2 3.715,4 3.873,1 4.111,3 4.281,6 4.637,6 4.692,1 4.791,3 4.698,2
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Localiza’s rental revenues at constant prices
Sector’s revenue at constant prices (ex- Localiza)
GDP 5.7% 3.2% 4.0% 6.1% 5.2% -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 3.9x GDP
and 6.0x the sector.
Raising money Buying
cars
Renting Cars Selling Cars
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 Fitch
Baa3 Moody’s
BBB- S&P
BBB+ S&P B+ S&P B+ Fitch B1 Moody‘s
brAAA S&P
Aa1.br Moody’s
AAA(bra) Fitch
brAA- S&P
A+ (bra) Fitch
brA S&P
A (bra) Fitch
brA+ S&P
A+ (bra) Fitch
A(bra) Fitch
Raising money
Buying cars
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%
Raising money
Buying cars
Renting Cars Selling Cars
Localiza Unidas Locamerica
108
158
55
12
The Company is present in 242 cities where the other largest networks do not operate.
Competitive advantages: renting cars
Know How Brand Brazilian distribution
# o
f b
ran
ch
es
# o
f c
itie
s
Source: Brand Analytics and each company website (Localiza and Peers, as of March, 2014)
470
321
Raising money
Buying cars
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.
Raising money
Buying cars
Renting Cars Selling Cars
Buffer: additional fleet
14
Spread
(ROIC versus cost of debt after taxes)
8.4% 8.8% 7.6% 7.3% 8.6%6.3% 6.0% 7.7%
21.3%17.0%
11.5%16.9% 17.1% 16.1% 16.5% 18.7%
2007 2008 2009 2010 2011 2012 2013 1H14
12.9p.p. 8.2p.p.
4.0p.p. 9.6p.p. 8.5p.p. 11.0p.p.
9.8p.p.
ROIC Cost of debt after taxes
Financial
crisis effect
10.5p.p.
Annualized
(*) 2008 and 2012 ROIC were calculated excluding additional fleet depreciation that was treated as equity loss since
they were extraordinary non-recurring events caused by external factors (IPI reduction for new cars), following the
concepts recommended by Stern Stewart.
Activities
Car and Fleet
rentals
Car and Fleet
rentals
Fleet rental
Logistics, Car
and Fleet and
rentals
Machinery, heavy
equipments and
fleet rentals
Gross Rental
Revenues (R$ million) 1,821.8 567.0 356.9 N/D 216.8**
Fleet (End of Period) 117,759 38,292 28,265 30,600* 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: 26.000 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. Consolidated
4. Debt and cash
5. Appendix
Earnings release 2Q14
Agenda
17
Car Rental overview
65.9% Compact cars
2013 Fleet composition
70,717 cars
34.1% Others
Net Revenues (R$ million)
Corporate fleet size
47,517
64,688 70,717
2009 2011 2013
428.0 565.2
585.2 802.2
980.71,093.7 1,163.5
563.6 628.1
280.3 316.7
2007 2008 2009 2010 2011 2012 2013 1H13 1H14 2Q13 2Q14
29
7082 89 90
2003 2010 2011 2012 2013
18
Drivers
Air 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
350380
415465
510545
622678
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$) Daily rental price over minimum salary (%)
Car rental affordability
Investments in Brazil (2014-2017)
(R$ 4,075 billion)
1,478
1,154
867
575
Services andAgriculture
Industry Housing Infraestructure
19 Source: ABLA 2013 Yearbook, Bradesco and Company’s loyalty program.
Company current penetration
Car Rental
4 million
84 million
Adult population
(age > 20 years)
Class A+B+C
15 million
Adult 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)
312 346381 415 449 474 479 470
2007 2008 2009 2010 2011 2012 2013 1H14
Localiza366 Hertz
64Unidas
111
Avis24
Movida25
Others2213
21 Source: 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
Localiza104
Hertz43
Unidas47
Avis29
Movida19
Others24
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 Revenues R$3,055.8 million
Fleet 222,554 cars
Characteristics of Car Rental network :
Complex chain management
High fixed-cost
Consolidated market in airports locations
Fragmented market in off-airport locations
High barrier to entry
Source: Euromonitor, ABLA and Companies’ Financial Statements and estimates.
Gains of scale
Sources: EUROMONITOR from 2008 to 2012 and ABLA for 2013
23
Market Share Evolution – Car Rental
33.2%
29.5%
37.8% 40.5% 41.8%
47.0%
5.2% 6.2% 6.9% 6.1% 6.1% 8.2%
2.9% 2.5% 2.9% 2.9% 2.8% 2.9% 2.6% 2.3% 2.6% 2.5% 2.5% 6.5%
56.1%
59.5%
49.8% 48.0% 46.8%
35.4%
2008 2009 2010 2011 2012 2013
Localiza
Hertz Avis
Unidas
Others
Based on Revenues
24
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
Earnings release 2Q14
Agenda
25
Number of clients
Fleet Rental overview
38.0% Compact cars
2013 Fleet composition
32,809 cars
62.0% Others
584687 760
2009 2011 2013
Net Revenues (R$ million)
219.8 268.4 303.2 361.1
455.0 535.7 575.9
288.9 283.1
147.1 140.0
2007 2008 2009 2010 2011 2012 2013 1H13 1H14 2Q13 2Q14
2013 Market Share – Fleet Rental
26
Rental Revenues R$3,464.2 million
Fleet 307,336 cars
Characteristics of the Fleet Rental business:
Low fixed cost
Risk of car residual value (depreciation)
Low entry barrier
Source: Euromonitor for revenue , ABLA for fleet and Companies’ Financial Statements.
Locamerica 10.3%
Unidas 9.1%
Ouro Verde 4.9%
18.4%
Others
57.2%
No gains of scale
11.3%
Unidas 7.1%
Locamerica 10.3%
JSL 8.5%
Ouro Verde 6.1%
Others 56.8%
27 Source: ABLA, Datamonitor and Localiza
Low penetration of rented fleet in Brazil.
Rented fleet penetration
Corporate fleet:
3,800,000*
Rented fleet:
307,336
32,809
Brazilian Market World
8.1% 8.9%13.3%
16.5%
24.5%
37.4%
46.9%
58.3%
Drivers
*Localiza estimates
28
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
Earnings release 2Q14
Agenda
29
Increased sales volume even with stability in the number of stores in the last three years.
# of points of sale
Car sales – operating data
32 35
4955
6673 74 74
2007 2008 2009 2010 2011 2012 2013 1H14
# of cars sold (Quantity)
30,093 34,281 34,519
47,285 50,77256,644 62,641
33,338
2007 2008 2009 2010 2011 2012 2013 1H14
30 Source: O Estado de São Paulo newspaper, as of 08/16/13 (based on researches of Sindipeças) and Globo website, as of 03/10/2014.
Used car sales drivers:
affordability and penetration
# of inhabitants per car 2012 – (Brazil 2013) # of inhabitants per car - Brazil
4.4
4.2
4.0
3.6
2.1
2.0
1.9
1.8
1.2
Brazil
Argentina
Russia
South Korea
Japan
France
Germany
United Kingdon
USA
8.0 7.9 7.4
6.9 6.55.9 5.5 5.2
4.4
2005 2006 2007 2008 2009 2010 2011 2012 2013
Affordability to buy cars – Public Price of
the most basic Gol
300 350 380
415 465 510
545 622 678 724
84
71 69 61
55 51
49 43 43 43
-
10
20
30
40
50
60
70
80
90
-
100
200
300
400
500
600
700
800
900
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Minimum wage (R$) Minimum wages to buy a new car
7.06.7
7.1 7.3 7.1
8.48.9 9.0
9.4
1.6 1.82.3
2.73.0
3.3 3.5 3.6 3.6
31
4.4x 3.7x
3.1x 2.7x 2.4x 2.5x 2.5x
2005 2006 2007 2008 2009 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 years
409,121
2013 Brand new
3,579,903 2013 Used cars
9,434,225
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. Consolidated
4. Debt and cash
5. Appendix
Earnings release 2Q14
Agenda
40%
60%
34
2013 Consolidated breakdown R$ million
Net Revenues EBITDA
11%
41%
48%
50%
16% 34%
Company’s profitability comes from Car Rental and Fleet Rental Divisions.
EBIT*
Net revenues EBITDA EBIT Net income
1,183.0 440.0 392.3 225.3
575.9 377.3 259.8 159.0
1,747.3 99.2 * *
Consolidated 3,506.2 916.5 652.1 384.3
*Seminovos results recorded in the Car Rental and Fleet Rental Division.
655.0 842.9 898.5 1,175.3 1,450.0 1,646.7 1,758.9 861.9 920.3
432.4 461.0
850.5 980.8 922.4
1,321.9 1,468.1
1,520.0 1,747.3
744.6 929.3
380.7 443.6
2007 2008 2009 2010 2011 2012 2013 1H13 1H14 2Q13 2Q14
35
Consolidated net revenues R$ million
Car Rental Used car sales
1,505.5 1,823.7
2,918.1 3,506.2
1,606.5 1,820.9
2,497.2
3,166.7
904.6
1,849.6
813.1
36
Consolidated EBITDA R$ million
EBITDA grew 7.3% in the 2Q14.
403.5 504.1 469.7649.5
821.3 875.6 916.5
442.3 490.6
225.1 241.6
2007 2008 2009 2010 2011 2012 2013 1H13 1H14 2Q13 2Q14
(*)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 reducing depreciation costs.
Divisions 2007* 2008* 2009* 2010* 2011* 2012 2013 1H13 1H14 2Q13 2Q14
Car Rental 46.0% 45.9% 41.9% 45.3% 46.9% 40.9% 36.8% 35.7% 39.1% 35.9% 38.1%
Fleet Rental 71.3% 69.1% 68.7% 68.0% 68.6% 66.4% 65.5% 66.1% 61.7% 66.2% 61.5%
Rental Consolidated 54.5% 53.3% 51.1% 52.3% 53.8% 49.3% 46.5% 46.1% 46.3% 46.4% 45.4%
Used Car Sales 5.5% 5.6% 1.1% 2.6% 2.8% 4.2% 5.7%
6.0% 7.0% 6.4% 7.3%
2,395.8
5,083.14,371.7
3,509.7 4,133.0
4,311.3
4,592.3 4,104.91,096.9
2007 2008 2009 2010 2011 2012 2013 1H14
332.9
2,546.0 2,577.0
1,536.0 1,683.9
1,895.8
1,452.4 1,360.9
2007 2008 2009 2010 2011 2012 2013 1H14
37
Average depreciation per car in R$
Robust used-car
market
Financial crisis and
IPI reduction effect
Robust
used-car market
Financial crisis and
IPI reduction effect
Depreciation Non recurring additional depreciation - IPI Effect
Depreciation Non recurring additional depreciation - IPI Effect
3,972.4
5,408.2
2,076.6
Average depreciation per car (R$) – Car Rental
Average depreciation per car (R$) – Fleet Rental
Annualized
Annualized
190.2127.4 116.3
250.5291.6
240.9
384.3
192.3 206.4
103.4 100.6
2007 2008 2009 2010 2011 2012 2013 1H13 1H14 2Q13 2Q14
38
Consolidated net income R$ million
* Pro forma 2012 net income excluding additional depreciation related to the IPI tax reduction, net of income tax.
336.3 *
2Q14 net income was impacted by higher interest rates,
partially offset by an increase in the EBITDA and a reduction in the car depreciation.
39
1. Company overview
2. Main business divisions
Car Rental
Fleet Rental
Seminovos
3. Consolidated
4. Debt and cash
5. Appendix
Earnings release 2Q14
Agenda
40
Free cash flow - FCF (*) Without the technical discount up to 2010
Free cash flow - R$ million 2007 2008 2009 2010 2011 2012 2013 1H14
Op
era
tio
ns
EBITDA 403.5 504.1 469.7 649.5 821.3 875.6 916.5 490.6
Used car sale revenue, net from taxes (850.5) (980.8) (922.4) (1,321.9) (1,468.1) (1,520.0) (1,747.3) (929.3)
Depreciated cost of cars sold (*) 760.0 874.5 855.1 1,203.2 1,328.6 1,360.2 1,543.8 818.4
(-) Income tax and social contribution (63.4) (52.8) (49.0) (57.8) (83.0) (100.9) (108.5) (72.7)
Change in working capital 13.3 (44.8) (11.5) 54.5 (83.9) 37.1 2.9 (70.5)
Cash provided before investment 262.9 300.2 341.9 527.5 514.9 652.0 607.4 236.5
Cap
ex -
Ren
ew
als
Used car sale revenue, net from taxes 850.5 980.8 922.4 1,321.9 1,468.1 1,520.0 1,747.3 929.3
Car investment for renewal (839.0) (1,035.4) (947.9) (1,370.1) (1,504.5) (1,563.3) (1,819.7) (972.4)
Net investment for fleet renewal 11.5 (54.6) (25.5) (48.2) (36.4) (43.3) (72.4) (43.1)
Fleet renewal – quantity 30,093 34,281 34,519 47,285 50,772 56,644 62,641 33.338
Investment, other property and intangibles investments (23.7) (24.0) (20.8) (50.6) (59.9) (77.8) (47.5) (25.6)
Free cash flow before growth, new HQ and interest 250.7 221.6 295.6 428.7 418.6 530.9 487.5 167.8
Cap
ex -
Gro
wth
Investment on cars for fleet (growth) (221.9) (299.9) (241.1) (540.3) (272.0) (55.5) (209.4) (50.5)
Change in accounts payable to car suppliers (51.0) (188.9) 241.1 111.3 32.7 (116.9) 89.7 99.9
Fleet growth (272.9) (488.8) 0.0 (429.0) (239.3) (172.4) (119.7) 49.4
Fleet increase / (reduction) – quantity 7,957 9,930 8,642 18,649 9,178 2,011 7,103 1,726
Free cash flow after growth, and before interest and before
new headquarters (22.2) (267.2) 295.6 (0.3) 179.3 358.5 357.8 217.2
Cap
ex –
HQ
Investment in the construction of the new headquarters - (15.9) (0.2) (0.5) (3.1) (2.4) (6.5) (18.8)
Marketable securities – new headquarters - - - - - - - (87.5)
New headquarters construction - (15.9) (0.2) (0.5) (3.1) (2.4) (6.5) (106.3)
Free cash flow before interest (22.2) (283.1) 295.4 (0.8) 176.2 356.1 361.3 110.9
41
Changes in net debt R$ million
- 1,368.1
(76.9)
Financial expenses
(106.3)
New headquarters
Net debt
06/30/2014
FCF(*)
217.2
-1,332.8
Net debt
12/31/2013
FCF after financial expenses
140.3
Due to the strong cash generation, net debt remained stable even after
the investments in the new headquarters.
(69.3)
Dividends
(*) Before new headquarters capex
184.7 238.6
488.8 511.0
221.0 294.5 195.0 147.5
2014 2015 2016 2017 2018 2019 2020 2021
245.9 185.7
641.4 511.0 221.0 247.0
100.0 100.0
2014 2015 2016 2017 2018 2019 2020 2021
42
Debt maturity profile (principal) R$ million
The Company monitors the market on a regular basis and changes its debt portfolio
to improve its debt profile and/or reduce its financial costs.
Cash
935.1
912.1
At the end of the Semester – June 30, 2014
Cash
1,010.7
1,073.0
At the beginning of the Semester – January 1, 2014
765.1
1,254.5 1,078.6 1,281.1 1,363.4 1,231.2 1,332.8 1,368.11,492.9
1,752.6 1,907.8
2,446.7 2,681.7 2,547.6
2,797.9 2,903.0
2007 2008 2009 2010 2011 2012 2013 1H14
43
Debt - ratios
Net debt vs. Fleet value
BALANCE AT THE END OF PERIOD 2007(*) 2008(*) 2009(*) 2010(*) 2011 2012 2013 1H14
Net debt / Fleet value 51% 72% 57% 52% 51% 48% 48% 47%
Net debt / EBITDA** 1.9x 2.5x 2.3x 2.0x 1.7x 1.4x 1.5x 1.4x
Net debt / Equity 1.3x 2.0x 1.5x 1.4x 1.2x 0.9x 1.0x 0.9x
EBITDA / Net financial expenses 5.4x 3.8x 4.2x 5.0x 4.6x 6.3x 8.3x 6.4x
(*) From 2007 to 2010, ratios based on USGAAP financial statements.
**Annualized
Net debt Fleet value
Comfortable debt ratios.
44
Localiza Level I ADR
Ticker Symbol: LZRFY
CUSIP: 53956W300
ISIN: US53956W3007
Ratio: 1 Common Share : 1 ADR
Exchange: OTC
Depositary bank: Deutsche Bank Trust Company Americas
ADR broker helpline: +1 212 250 9100 (New York)
+44 207 547 6500 (London)
E-mail: adr@db.com
ADR website: www.adr.db.com
Depositary bank’s local custodian: Banco Bradesco S/A, Brazil
45
Disclaimer
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 any underwriters we may appoint in connection with an
offering of securities in future. 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.
Website: www.localiza.com/ir E-mail: ri@localiza.com Phone: 55 31 3247-7024
Roberto Mendes
CFO and IR
Nora Lanari
Head of IR Eugênio Mattar
CEO