Localiza Rent a Car S A : Webcast 2Q23

PROVISIONAL MEASURE No . 1 . 175/2023

Overview of the Provisional Measure published on

June 5, 2023

Purpose:

✔️ Establish a discount mechanism for the acquisition of new vehicles up to R$120,000.00

Discount Value:

✔️ Incentives for passenger cars ranged from R$2 thousand to R$8 thousand

Target Audience:

✔️ The Provisional Measure initially applied only to individuals and at the end of June was extended to companies

Duration:

✔️ Initially, 120 days or up to the total discount of R$500.0 million, with this amount increased by another R$300.0 million throughout the quarter

Source: Companhia e Diário Oficial da União

IMPACTS ON LOCALIZA´S OPERATION

Impact on fleet residual value: R$631.4 million, before taxes,

accounted for in the 2Q23 result

Positive Impact on Cash Flow: Around 23 thousand cars were purchased with discounts between the end of June and the beginning of July.

2

O N E- OFFS AND PROVISIONAL MEASURE

In this quarter, together with the effects related to the business combination (one-offs), we will also highlight the effects from the Provisional Measure No. 1,175 and the write-off of Car Rental Systems tax loss, as follows:

Description	EBIT Impact	Net Income Impact
Fleet write-up amortization	(122.3)	(80.7)
Amortization of the customer portfolio write-up	(1.1)	(0.7)
Impact of Provisional Measure No. 1,175	(631.4)	(416.7)
Write-off of Tax Losses		(9.7)
Total	(754.8)	(507.8)

• Fleet write-up: (accounting of the difference between the fair value net of cost of sales and the book value of the
  fleet acquired in the business combination): amortization according to the criterion used for depreciation of the vehicles in the fleet or in the event of the car being written off
• Customer relationship write-up (accounting for the fair value of customer relationships)
• Write-offof Tax Losses: Write-off of Car Rental Systems' tax loss
• Provisional Media Impact No. 1,175: accounting of R$631.4 million, being R$153.3 million in Seminovos, highlighted as "Adjustment to the Recoverable Value of Assets" and R$478.1 million in the car depreciation line

3

OPERATIONAL HIGHLIGHTS

Consolidated Net Revenue		Consolidated EBITDA
R$ million	R$ million

	42.9%	13,672.1		34.6%	6,846.3
9,569.3
64.2%	6,689.7	5,085.7
	43.4%	3,283.9
4,073.9			2,289.4
	27.1%
5,495.4	6,982.4	2,796.3	27.4%	3,562.4

33.8%

3,828.0

52.0

3,776.0

5,121.9

153.3

4,968.6

27.9%

1,953.5

25.8

1,927.7

2,498.9

153.3

2,345.6

1H22 Proforma	1H23	2Q22 Proforma	2Q23	1H22 Proforma
		Rentals			Seminovos				EBITDA
Debt Profile (as of 06/30/2023)		Debt Ratios

1H23	2Q22 Proforma	2Q23
Adjusted for the effects of		Adjusted for the effects
business combination			of PM No. 1,175

R$ million					R$ million
Cash equivalent to					0.58x	2.78x
81.2% of debt by 2025
				44,671.1
11,068.1						25,897.1
					25,897.1
6,325.6	5,777.8	6,316.7	6,355.5	5,695.1
		9,301.6
1,533.2			3,840.6

Cash and

2023

2024

2025

2026

2027

2028

2029 to 2032

financial

assets

	2Q23		2Q23
Net debt			Fleet value		Net debt	EBITDA

4

CAR RENTAL

Net Revenue

R$ million, including royalties

28.2%	7,421.8
5,787.6		10.1%			9.9%
	3,560.8	3,919.6		1,958.5
		1,781.8

2021 Proforma 2022 Proforma 1H22 Proforma1H232Q22 Proforma 2Q23

Rental days
In thousands				Impacted by
			-3.4%
73,109.5	4.0%	76,026.3	carve-out in y/y
37,837.6	36,552.3		Impacted by
			-5.7%	carve-out in y/y
				19,135.7	18,041.5

2021 Proforma 2022 Proforma 1H22 Proforma1H232Q22 Proforma 2Q23

NET REVENUE GROWTH IN THE ANNUAL COMPARISON, EVEN WITH THE CARVE-OUT IMPACTING THE RENTAL VOLUMES	5