1. Localiza Rent a Car S.A.
1Q10 Results - R$ millions, USGAAP
April 14th, 2010
1
2. 1Q10 Highlights
R$ millions 1Q09 1Q10 Variation
Net revenue 446.1 563.9 26.4%
EBITDA 115.4 132.1 14.5%
Net income 30.2 48.8 61.6%
Net margin 6.8% 8.7% 1.9p.p.
Quantity 1Q09 1Q10 Variation
Purchased cars 387 11,486 11,099
Sold cars 7,828 10,948 3,120
End of period fleet 54,817 70,608 15,791
Localiza is back to high levels of growth.
2
3. Car Rental Division
Net revenue (R$ million)
3.8%
29.2%
CAGR: 585.7 607.8
442.7
357.2
271.3
20.1%
151.1 181.4
2005 2006 2007 2008 2009 1Q09 1Q10
# daily rentals (thousand)
% 1.5%
: 32.5
CAGR 7,940 8,062
5,793
4,668
3,411 21.4%
1,952 2,369
2005 2006 2007 2008 2009 1Q09 1Q10
The 21.4% growth in rentals was partially offset by the drop of 1.1% in the average rental rate, due
to the option of insurance contracting.
3
4. Car Rental Division
# daily rentals (thousand)
5%
17. 1% 25.
0%
22.
711.2 835.4 722.1 811.3
591.6 649.2
Jan Feb Mar
2009 2010
# daily rentals
jan feb m ar apr m ay jun jul aug sep oct nov dec
2005 2006 2007 2008 2009 2010
In the 1Q10, daily rentals grew 21.4%.
4
6. Fleet Rental Division
Net revenue (R$ million)
%
: 22.9
CAGR 13.2
%
313.4
276.9
228.2
190.2
149.2
%
11.2
75.9 84.4
2005 2006 2007 2008 2009 1Q09 1Q10
# daily rentals (thousand)
:2 4.3% 10.3%
CAGR 7,099
6,437
5,144
4,188
3,351 6.2%
1,780 1,890
2005 2006 2007 2008 2009 1Q09 1Q10
Revenues grew above volume, due to an increase of 4,9% in the average rental rate.
6
7. Used car sales
# of sold cars
%
: 22.3
CAGR 34,281 0
.7%
34,519
30,093
23,174
18,763
9%
39. 10,948
7,828
2005 2006 2007 2008 2009 1Q09 1Q10
# of sold cars
%
.6
.9
%
7.8
% 48 4,213
41 3,577 2
3,158 2,836
2,521 2,471
Jan Feb Mar
2009 2010
Sale’s volumes are back to pre-crisis levels.
7
8. Car Rental Division
Average age of operational fleet
(month)
9.5
6.3 6.9
2008 2009 1Q10
The average age of the operating fleet is returning to pre-crisis levels.
Average age of sold cars
(month)
18.7
16.6
12.3
2008 2009 1Q10
8
9. Consolidated net revenues
R$ million
: 28 .4%
CAGR 1,855.7 1,856.3
1,531.7
1,145.4
876.9
26.4%
563.9
446.1
2005 2006 2007 2008 2009 1Q09 1Q10
Consolidated net revenues grew 26.4% in the 1Q10.
9
11. Depreciation per car
R$
Car Rental Division
2,546.0 2,577.0
1,318.0
939.1
492.3 332.9
2005 2006 2007 2008 2009 1Q10
Fleet Rental Division
5,083.1
4,371.7
3,254.4
2,981.3
2,383.3 2,395.8
2005 2006 2007 2008 2009 1Q10
Average depreciation per car fell again in the 1Q10.
11
12. Net income
R$ million
190.2
138.2 127.4 116.3
106.5
61.6% 48.8
30.2
2005 2006 2007 2008 2009 1Q09 1Q10
Reconciliation of EBITDA x Net Income 2008 2009 Var. R$ 1Q09 1Q10 Var. R$
EBITDA - Car rental and fleet rental 449.6 459.1 9.5 112.3 129.6 17.3
EBITDA - Used car sales 54.5 10.6 (43.9) 3.1 2.5 (0.6)
EBITDA Consolidated 504.1 469.7 (34.4) 115.4 132.1 16.7
Depreciation of revenue-earning vehicles (178.5) (172.3) 6.2 (29.9) (30.7) (0.8)
Other depreciation (18.3) (21.0) (2.7) (5.3) (5.1) 0.2
Financial expenses, net (133.3) (112.9) 20.4 (38.8) (28.2) 10.6
Income tax and social contribution (46.6) (47.2) (0.6) (11.2) (19.3) (8.1)
Net income 127.4 116.3 (11.1) 30.2 48.8 18.6
Net income grew 61.6% in the 1Q10.
12
13. Free cash flow - FCF
Free cash flow - R$ million 2005 2006 2007 2008 2009 1Q10
EBITDA 277.9 311.3 403.5 504.1 469.7 132.1
Used car sales revenues (448.2) (590.3) (853.2) (983.2) (924.5) (295.4)
Cost of used car sales 361.2 530.4 760.0 874.5 855.1 275.3
EBITDA without used car sales revenues and costs 190.9 251.4 310.3 395.4 400.3 112.0
(-) Income tax and social contribution – current (32.7) (42.7) (63.4) (52.8) (49.0) (15.6)
Working capital variation (24.2) (4.8) 13.3 (44.8) (11.5) 1.7
Cash provided before capex 134.0 203.9 260.2 297.8 339.8 98.1
Used car sales revenues 448.2 590.3 853.2 983.2 924.5 295.4
Capex of car – renewal (496.0) (643.3) (839.0) (1,035.4) (963.1) (297.1)
Change in amounts payable to car suppliers (capex) - - - - 15.2 (15.2)
Net capex for renewal (47.8) (53.0) 14.2 (52.2) (23.4) (16.9)
Capex - Property and equipment, net (28.0) (32.7) (23.7) (39.9) (21.0) (7.7)
Free cash flow before growth 58.2 118.2 250.7 205.7 295.4 73.5
Capex of car – growth (194.0) (287.0) (221.9) (299.9) (241.1) (14.6)
Change in amounts payable to car suppliers (capex) (25.5) 222.0 (51.0) (188.9) 241.1 (8.7)
Free cash flow (161.3) 53.2 (22.2) (283.1) 295.4 50.2
The Company generated R$50.2 million of free cash flow in the 1Q10,
even with a small increase in the fleet.
13
14. Net debt reconciliation
R$ million
Free cash flow
50.2
Net debt Net debt
12/31/2009 03/31/2010
-1,078.6 -1,062.1
(8.9)
Interest on (24.8)
own capital
Interest
and
others
Net debt was reduced by R$16.5 million.
14
15. Debt – profile and costs
R$ million
Debt profile (principal) on 03/31/10
225.0 239.6
200.7 205.4 211.8
160.0
2010 2011 2012 2013 2014 2015
250.8
Cash
Stand by* *Stand by refers to R$100 MM limit with BNDES, with term of drawing until sept/2010
Gross debt - principal Average effective cost 2010 2011 2012 2013 2014 2015 Total
Working Capital CDI + 1.25%pa - 204.5 58.0 73.0 45.0 60.0 440.5
Debentures - 2nd Issuance CDI + 0.59%pa - - 66.6 66.6 66.8 - 200.0
Commercial Papers 108.9% of CDI 200.0 - - - - - 200.0
Debentures - 1st Issuance, Total
CDI +2.02%pa - - 100.0 100.0 100.0 100.0 400.0
Fleet
BNDES TJLP + 3.80%pa 0.7 0.9 0.4 - - - 2.0
Total gross debt - principal - 200.7 205.4 225.0 239.6 211.8 160.0 1,242.5
Cash and cash equivalents (250.8) - - - - - (250.8)
Total net debt - principal - (50.1) 205.4 225.0 239.6 211.8 160.0 991.7
Debt profile was extended.
15
16. Debt – ratios
R$ million
1,907.8 1,907.7
1,752.6
1,492.9
1,247.7 1,254.5
1,078.6 1,062.1
900.2
765.1
535.8 440.4
2005 2006 2007 2008 2009 1Q10
Net debt Fleet value
BALANCE AT THE END OF THE PERIOD 2005 2006 2007 2008 2009 1Q10
Net debt / Fleet value (USGAAP) 60% 36% 51% 72% 57% 56%
Net debt / EBITDA (USGAAP) 1.9x 1.4x 1.9x 2.5x 2.3x 2.0x*
Net debt / EBITDA (BRGAAP) 1.5x 1.0x 1.3x 1.8x 1.7x 1.3x*
Net debt / Equity (USGAAP) 1.4x 0.7x 1.3x 2.0x 1.5x 1.4x
* annualized
Indebtedness ratios improved and remain comfortable.
16