Localiza Rent a Car Stock

Localiza Rent a Car S.A. and its subsidiaries engage in the car rental, fleet rental and franchising businesses.

As of March 31, 2018, the company’s consolidated fleet consisted of 193,260 cars, including 14,741 cars from franchisees. To renew the fleet, the company, its subsidiary, Localiza Fleet S.A. (Localiza Fleet) and its indirect subsidiary, Localiza Car Rental Systems S.A., sell their decommissioned cars, thereby generating cash to pay carmakers for new cars.

As of March 31, 2018, the company’s Platform (including its franchisees in Brazil and internationally) was consisted of 591 car rental locations (not reviewed quarterly by the auditors), of which 521 locations in 362 cities in Brazil, 390 of which were operated by the company and 131 by franchisees; and 70 locations in 41 cities in 6 South American countries, all operated by franchisees.

As of March 31, 2018, the company’s Platform fleet was consisted of 193,260 cars, of which 178,519 belonged to the company, including 133,777 of the Car Rental Division and 44,742 of the Fleet Rental Division; 8,278 belonged to its franchisees in Brazil; and 6,463 belonged to its franchisees internationally. Decommissioned cars are sold to final consumers through 99 points of sale owned by the company, located in 65 cities throughout Brazil.

Divisions

Car Rental

This division is responsible for car rentals in locations located inside and outside airports and for insurance stipulation and management of car claims for insurance companies. Cars are rented by legal entities and individuals, in some cases through distribution channels. Given the need to renew the fleet, the company sells its cars after 12 months of use.

Fleet Rental

This division is responsible for fleet rental to legal entities, through the subsidiaries, such as Localiza Fleet and Car Rental Systems, for long periods, approximately 24 to 36 months. This division’s fleet is acquired after signature of agreements according to the clients’ needs. Decommissioned cars are sold within 34 months of use, on average, directly to the end consumer or to dealers through the company's own car dealer network.

Franchising

This division is responsible for the management and establishment of franchises in geographically defined markets, including the transfer of the necessary know-how to operate the business and licensing of the right to use the Localiza brand. The franchising business is managed by the subsidiary, Franchising Brasil, in Brazil; LFI S.R.L., in Argentina; and by the company itself in other countries.

History

Localiza Rent a Car S.A. was founded in 1973.