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Localiza Rent a Car S.A., which has adopted the corporate brand Localiza&CO, was incorporated in 1973 in Belo Horizonte (MG) as a limited liability company founded by Salim Mattar, Eugênio Mattar, Antônio Cláudio Resende and Flávio Resende. The company began operations with a small fleet of six used, financed Volkswagen Beetles and, over the following decades, built a track record of organic expansion and acquisitions in the Brazilian car rental market. Still in the 1970s and 1980s, the company expanded geographically into several Brazilian state capitals, following a strategy that prioritized the Northeast before consolidating its presence in São Paulo. In 1981, it became the leader in number of branches in the Brazilian car rental market. From the 1990s onward, it diversified its activities by creating a used car sales operation and a fleet management division, while also accessing the international capital markets through debt offerings.

Localiza went public on B3 in 2005, listing on the Novo Mercado segment and marking the exit of foreign fund DLJ Merchant Banking from the controlling shareholder block. The shares began trading under the ticker RENT3 and, later, units represented by the code RENT4 were also introduced. In 2006, there was a follow-on equity offering, and in 2012 the company’s shares were included in the Ibovespa and IBrX-50 indices, in addition to the launch of a Level I ADR program in the United States. Recent milestones include significant acquisitions, such as the purchase of Hertz’s Brazilian operations in 2017, the strengthening of its digital transformation agenda starting in 2014, and the business combination with Companhia de Locação das Américas (Locamerica/Unidas), whose share merger was completed in 2022 after approval by CADE and the execution of an asset carve-out required as an antitrust remedy.

Localiza&CO’s business model is based on an integrated mobility platform structured into two operating divisions: Rent-a-Car (RAC) and Fleet Management. Both divisions use the same asset base – the light vehicle fleet – and share corporate support areas, which enables economies of scale, operating synergies and fixed-cost dilution. The company purchases vehicles in large volumes from car manufacturers, allocates these assets among short- and medium-term rentals, corporate fleet contracts and, at the end of their use cycle, retires the cars and sells them through its own network of used car outlets. This resale operation feeds back into the capital cycle, contributing to fleet renewal and the management of vehicles’ residual value, a central element in the profitability of the business.

The Rent-a-Car Division is Localiza’s main revenue generator, accounting for 59.1% of consolidated net revenue in 2024 when combining operations in Brazil and Mexico. This division covers short- and medium-term rentals for individuals and corporate clients, with daily, weekly and monthly options, as well as specific segments such as replacement, in which vehicles are made available as courtesy cars to insurance and automaker customers. The company also rents cars to ride-hailing drivers through Localiza Zarp, which combines a dedicated service structure and intensive use of technology, telematics and integration with mobility platforms to mitigate default, theft and fraud. The service network is made up of company-owned and franchised branches, supported by a franchising department that standardizes operations, transfers know-how and manages the Localiza brand in the markets where it operates.

The Fleet Management Division focuses on long-term vehicle lease contracts for companies, with an emphasis on outsourcing corporate fleets. This operation accounts for 40.9% of consolidated net revenue in 2024 and differs from traditional car rental by involving longer terms, customized service packages, scheduled maintenance and telematics solutions for usage control and safety. The acquisition of Mobi7 in 2020 strengthened this technology front, enabling Localiza to expand its offering of monitoring, tracking, driving data analysis and Internet of Things (IoT) applied to asset management. The company reports having more than 500,000 connected vehicles, feeding a significant data base for decision-making, dynamic pricing, maintenance and mitigation of operating and credit risks.

A central element of Localiza’s platform is the Used Cars operation, responsible for selling vehicles retired from the Rent-a-Car and Fleet Management divisions. As of December 31, 2024, the company had 242 used car sales outlets in 118 Brazilian cities, through which it sells mainly to end consumers and resellers. These outlets are distributed across all regions of the country, enabling broad capillarity in asset disposal. In 2024, the sale of retired vehicles generated significant net revenue, supporting the strategy of rejuvenating the fleet and managing invested capital. The business cycle is completed with the sale of the vehicle, whose cash proceeds contribute both to debt amortization and to new acquisitions, in a sector that is known for being capital-intensive and sensitive to the price dynamics of new and used vehicles.

From a market and geographic presence perspective, Localiza&CO is one of the largest car rental companies in Latin America and claims to be the leader in Brazil in number of branches, fleet size and gross revenue. As of December 31, 2024, the company, its subsidiaries and franchisees had 706 car rental branches, of which 614 were in Brazil, 18 in Mexico and 74 in five other South American countries. The fleet totaled 683,498 vehicles, of which 669,362 were owned and 14,136 belonged to franchisees. The company’s entry into Mexico in 2023 marked an expansion of its international presence, targeting a market with relatively low car rental penetration, presence in major airports and potential linked both to tourism and domestic demand. The customer base is highly diversified, with no significant concentration in any single client, which reduces dependence on specific major accounts.

Localiza’s relationship with the public sector is mainly tied to urban aspects, property use and airport operations, without a sectoral concession regime typical of public utilities. The car rental activity requires obtaining a CNPJ corporate taxpayer registration, operating permits and Fire Department Inspection Certificates, as well as prior analysis of the technical, legal and environmental feasibility of commercial locations through internal studies (EVTLA). At airports, operations depend on concession contracts or use-rights agreements with INFRAERO and other airport authorities. Although the core activity is not subject to specific environmental licensing, the company is subject to obligations related to reverse logistics and proper waste disposal, especially used lubricating oil from fleet maintenance, and may be held liable for environmental damage caused by third-party contractors, which requires compliance monitoring.

In the environmental, social and governance field, Localiza&CO adopts initiatives aligned with international standards, such as adherence to the UN Global Compact since 2017, committing to human rights, labor relations, the environment and anti-corruption. The company has been part of B3’s Carbon Efficient Index (ICO2) since 2020, reflecting a level of transparency and greenhouse gas emissions management recognized by the market. In 2024, based on 2023 data, it received a gold seal from the GHG Protocol for its emissions inventory and an ESG risk rating of 10.4 from Sustainalytics, categorized as “low risk” and positioning the company among the best-rated in the transportation sector. In parallel, it pursues a digital transformation agenda structured through Localiza Labs, with an emphasis on full migration of systems to the cloud, adoption of SAP S/4HANA, and development of capabilities in artificial intelligence, machine learning, data, cybersecurity and IoT, reinforcing technology as an operational and data governance pillar, including compliance with the General Data Protection Law (LGPD). The company’s shares continue to trade on B3 under the tickers RENT3 and RENT4, and are included in key Brazilian capital market indices.