1. Localiza Rent a Car S.A.
1Q10 Results - R$ millions, USGAAP
Goldman Sachs: “The BRICs Nifty 50: The EM and DM winners”, November, 2009
May, 2010
1

2. Localiza started its business in 1973…
…with 6 used beetles, 100% financed.
2

3. Timeline: growth by adjacencies
79.858 cars
79.858 cars
9 countries
9 countries
449 locations
449 locations
1973 1984 1990 1997 1999 2005 2006 2007 2008 2009 1Q10
Private US$ R$ 350MM R$ 200MM R$ 300MM R$ 400MM R$ 370MM
Equity 100MM IPO Debenture Follow on Debenture Debenture Debenture Debenture
DLJ Bonds 1st Localiza 2nd Localiza 3rd Localiza 1st Total Fleet 4th Localiza
3

4. Ownership breakdown
Founders
13.1% 8.6% 12.0% 8.6% 57.7%
Salim Eugenio Antonio Flavio
Claudio Resende Resende Free-Float *
Mattar Mattar
100% 100% 100%
* Includes 4.226.300 shares in Treasury 4

5. Company’s structure
BOARD OF DIRECTORS
CEO Salim Mattar
Car
Acquisition
Legal
COO Eugenio Mattar
Human Administration
Financial Resources IT
Localiza has a very lean and efficient structure
The supporting areas assist all four businesses’ divisions.
The succession process is already planned.
5

6. Integrated business platform
48,323 cars 22,285 cars
2.0 million clients 599 clients
213 locations 232 employees
2.844 employees
Revenue: 16.9%
Revenue: 32.7% EBITDA: 44.4%
EBITDA: 52.2% Synergies: Net income.: 38.8%
Net income: 57.8%
bargaining power
cost reduction
cross selling
9,250 cars
Capacity to sell 50,000 cars/year
166 locations in Brazil
Around 80% sold to final consumer
70 locations in South America
48 stores
26 employees
617 employees
Revenue: 0.6% Revenue: 49.8%
EBITDA: 1.2% EBITDA: 2.3%
Net income: 3.4% Net income: -
This integrated business platform gives Localiza flexibility and superior performance
6

7. Strategy by division
Increase market leadership maintaining high return
Core Businesses
Create value taking advantage of the fleet rental market,
leveraging the synergies from the integrated business platform
Add value to the brand by expanding the network in Brazil and
South America, with profitability
Support
Add value to the businesses optimizing fleet renewal and
reducing depreciation
7

8. Financial cycle – Car rental
1-year cycle
Funding (PV) Net car sale revenue
$26.6 $25.6
Revenue: 19.0
1 2 3 4 5 Expenses: (10.8) 8 9 10 11 12
$26.6 $29.7
Car acquisition Funding (FV)
Car rental Used car sales Total
Per operational car Per operational car 1 year
R$ % R$ % R$
Revenues 19.0 100.0% 27.6 100.0% 46.6
Cost (8.0) -42.1% (8.0)
SG&A (2.8) -14.7% (2.0) -7.3% (4.8)
Net car sale revenue 25.6 92.7% 25.6
Book value of car sale (25.1) -91.0% (25.1)
EBITDA 8.2 43.2% 0.5 1.7% 8.7
Depreciation (vehicle) (1.6) -5.8% (1.6)
Depreciation (non-vehicle) (0.3) -1.6% (0.3)
Interest on debt (1.9) -6.7% (1.9)
Tax (2.4) -12.5% 0.9 3.3% (1.5)
NET INCOME 5.5 29.1% (2.1) -7.6% 3.4
ROIC 17.8%
8

9. Financial cycle - Fleet rental
Funding (PV) 2-year cycle Net car sale revenue
33.8 28.5
Revenue: 32.4
1 2 3 4 5 Expenses: (10.5) 20 21 22 23 24
33.8 42.0
Car acquisition
Funding (FV)
Fleet rental Used car sales Total
Per operational car Per operational car 2 years
R$ % R$ % R$
Revenues 32.4 100.0% 30.7 100.0% 63.1
Cost (8.7) -26.7% (8.7)
SG&A (1.8) -5.6% (2.1) -7.0% (4.0)
Net car sale revenue 28.5 93.0% 28.5
Book value of car sale (28.0) -91.3% (28.0)
EBITDA 21.9 67.6% 0.5 1.7% 22.4
Depreciation (vehicle) (6.5) -21.2% (6.5)
Depreciation (non-vehicle) (0.4) -1.2% (0.4)
Interest on debt (4.9) -16.0% (4.9)
Tax (6.5) -19.9% 3.3 10.6% (3.2)
NET INCOME 15.1 46.5% (7.6) -24.8% 7.4
NET INCOME per year 7.5 46.5% (3.8) -24.8% 3.7
ROIC 16.1%
9

10. Growth opportunities
Consolidation
US market: 4 players 95%
BR market: 4 players 45%
1.893 players 55%
Source: Auto Rental News and Company’s estimates
Infrastructure
Outsourcing Pre salt – R$30bn/year until 2015
Corporate fleet : 2MM of cars
Automakers R$23bn until 2013
Targeted market 500.000 cars
World Cup 2014 – R$ 71bn
30% rented
Olympic Games in RJ – R$ 31bn
Source: Company’s estimates
Source: Petrobras, Santander Equity Market
Income / Consumption
Air traffic 2010: 12 to 18%
Credit cards: 45 mm of holders
Income growth:
Middle class in Brazil 2009 – 98MM
Source: Gol, Tam, Abecs and Company’s estimates
Strong drivers of growth
10

11. Growth opportunities: GDP
Rental revenues accumulated growth rate – rentals
Localiza
6.5x
Sector
3.3x
GDP
2005 2006 2007 2008 2009
PIB Loc a l i z a S e c t or
GDP annual growth estimated for the next 5 years between 4 and 5% (Brazilian Central Bank)
Source: Central Bank, Localiza and ABLA
11

12. Growth opportunities: consolidation
Brazilian car rental agencies
Airport locations Off-airport locations
Others Localiza
49 290 Unidas
Hertz
74 Hertz
28
73
Avis
53
Unidas
28
Localiza
Avis 89 Others*
30 1951
Off-airport market is an opportunity to Localiza since it is still fragmented
*Source: ABLA, 2009
Source: Each company website as of March 31th , 2010
12

13. Competitive advantages
Gains of Scale Higher
Know-how
scale Strong brand competitiveness
Strong values
Integrated platform
Geographical footprint
High corporate governance standards
Used car sales network
Management model
Lower depreciation
Stable Management
Owners involved
Facilities
Rating
Market share
increase
Localiza reached the virtuous circle
13

14. Competitive advantages
37 years of experience…
Raising Buying Renting Selling
money cars cars cars
…gives Localiza know-how and superior performance
in all chains of the business process
14

15. Competitive advantages in funding
Raising Buying Renting Selling
money cars cars cars
Rating
Moody’s corporate rating as of Mar/10 (Local Currency) Standard & Poors as of Mar/10 (Local Currency)
Localiza Rent a Car S.A Aa2.br Localiza Rent a Car S.A brAA-
Braskem S.A. Aa2.br Braskem S.A brAA+
Cyrela Brazil Realty brA+
Cyrela Brazil Realty Aa2.br
CEMIG brAA
CEMIG Aa2.br
Duke Energy brAA-
Duke Energy Aa2.br
Tam brA
Localiza raises money with lower spreads
15

16. Competitive advantages in buying cars
Raising Buying Renting Selling
money cars cars cars
Localiza’ share in national sales of Purchases by brand
Fiat, GM, VW and Renault*
Localiza
2.3% GM FIAT
44% 33%
Others VW
RENAULT
1% 16%
6%
Localiza purchases cars with better prices and conditions
* Includes Localiza, Total Fleet and Franchisees purchases. 16

17. Competitive advantages in renting cars
Raising Buying Renting Selling
money cars cars cars
Geographical
Strong brand Scale
footprint
Locations in Brazil
379
274
71
101
102
Localiza Unidas Hertz Avis
*Source: Each company website as of March 31th , 2010
17

18. Competitive advantages: network footprint
Airport and off airport branches located in easy-access and intense traffic places
18

19. Competitive advantages in used car sales
Raising Buying Renting Selling
money cars cars cars
Unique product Selling directly to final consumer Footprint
Pre owned cars
Low mileage 48 stores
Pre-owned cars
Automaker warranty
Cars financed through third-party
financial institutions
Cash generated in used car sales is used to renew the fleet
Selling directly to final consumer reduces depreciation
19

20. Competitive advantages: used car sales network
Around 80% of used cars are sold directly to final consumers
20

21. Competitive advantages: additional fleet
Cars available for sale are used by car rental division in peaks of demand
21

22. Competitive advantages: stable management
BOARD OF DIRECTORS
Salim Mattar - 37y
CEO
Car
Acquisition
Legal
COO Eugênio Mattar – 37y
Human Administration
Financial Resources IT
Gina Rafael – 29y
Bruno
Roberto Mendes – 25y
Andrade – 18y
Helvia Barcelos – 23y
Daltro Leite – 25y
Marco Antônio
Guimarães – 20y
22

23. Competitive advantages: management model
Business
Values Planning
Execution
Vision Stock
Options
Mission Yearly
bonus
Objectives Variable
Mgt. Action
Actions Evaluation Reward
contract plan
Management by results: execution with meritocracy
23

24. Results
24

25. Results: growth with profitability
Net revenues consolidated
.8%
R : 30 1,855.7 1,856.3
CA G
1,531.7
CAGR: 16.5% 1,145.4
876.9
532.0 634.4
420.4 476.9
234.3 244.7 310.1
212.9
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
EBITDA consolidated
%
R: 26.3
CAG 504.1 469.7
23.9% 403.5
CAGR: 311.4
278.1
197.8
134.3 154.0 149.9 152.1
62.0 85.2
42.0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
GDP 3.4 0.0 0.3 4.3 1.3 2.7 1.1 5.7 2.9 3.7 4.6 5.1 -0.2
Average 1.9 4.4 -0.2
25

26. Results: market share
Fleet - consolidated Revenues - consolidated
24.8% 24.2%
21.8% 21.4%
20.6% 20.8% 22.1%
18.9% 20.5%
17.9%
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
Fleet
30.4% 13.2%
Source: ABLA, 2009
26

27. Results: consolidated market share
Revenues
2008 2009
Localiza Localiza
24.8% 24.2%
Unidas Unidas
Others 7.1% Others 7.7%
68.1% 68.1%
Localiza Unidas
2008 2009 1Q10 2008 2009 1Q10
Consolidated fleet 69,460 77,880 78,664 37,982 36,000 33,029
Rental and franchised revenues 988.6 1,057.6 308.3 325.3 376.3 84.9
Net income 127.4 116.3 48.8 (17.4) (31.6) (32.2)
27

28. Corporate governance
Elected twice the best company in corporate governance
(Capital Aberto Magazine)
Elected “the most shareholder-friendly” company
(Institutional Investor Magazine - 2008)
Recognitions & Rewards
47th most valuable brand in Brazil among listed companies
(Brand Analytics, May 2010)
The best in the transportation sector
(Exame Magazine, July 2009)
Elected twice the best CEO of a small-cap
(Institutional Investor Magazine)
28

29. Financials
1Q10
29

30. 1Q10 Highlights
R$ millions 1Q09 1Q10 Variation
Net revenue 446.1 563.9 26.4%
Rental net revenues 229.4 268.5 17.0%
EBITDA 115.4 132.1 14.5%
Net income 30.2 48.8 61.6%
Net income / Rental net revenues 13.2% 18.2% 5.0p.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
30

31. Car Rental Division
Net revenue (R$ million)
3.8%
29.2%
CAGR: 585.7 607.8
442.7
357.2
271.3
20.1%
181.4
151.1
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
31

32. Car Rental Division
# daily rentals (thousand)
%
17.5 1% 25.
0%
22.
711.2 835.4 722.1
649.2
811.3
591.6
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
Growth resumption
32

33. 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
33

34. Depreciation per car
Car Rental Division
-51.1
%
2,546.0 2,577.0
1,318.0
939.1
492.3 332.9
2005 2006 2007 2008 2009 1Q10
…resulting in lower depreciation
34

35. Fleet Rental Division
Net revenue (R$ million)
%
: 22.9
CAGR 1 3 .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)
: 24.3% 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
35

36. Depreciation per car
Fleet Rental Division
-25.6
%
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 decreased again in the 1Q10
36

37. Used car sales
# of sold cars
%
: 22.3
CAGR 34,281 0
.7 %
34,519
30,093
23,174
18,763
%
39.9 10,948
7,828
2005 2006 2007 2008 2009 1Q09 1Q10
# of sold cars
%
.6
% % 48 4,213
41
.9
3,577 27.8
3,158 2,836
2,521 2,471
Jan Feb Mar
2009 2010
Sale’s volumes are back to pre-crisis levels
37

38. 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
38

39. Consolidated EBITDA margins
R$ million
: 22.0% - 6.8
CAGR %
504.1 469.7
403.5
277.9 311.3
%
115.4 14.5 132.1
2005 2006 2007 2008 2009 1Q09 1Q10
Divisions 2005 2006 2007 2008 2009 1Q09 1Q10
Car rental 45.3% 42.0% 44.5% 44.3% 40.3% 40.8% 40.6%
Fleet rental 62.3% 69.1% 68.7% 67.0% 66.5% 65.2% 64.5%
Rental consolidated 51.0% 51.2% 52.6% 51.5% 49.3% 49.0% 48.3%
Used car sales 13.2% 4.6% 5.4% 5.5% 1.1% 1.4% 0.8%
Consistent EBITDA margins
39

40. 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
40

41. Spread: ROIC x CDI
3 0. %
0 3 0. %
0
24.9%
21.3%
19.1% 18.8%
17.0%
15.3% 14.3%
12.0% 11.5%
11.6%
10.1%
10.0%
9.3
5.8 3.5 5.4 1.5 4.3
0. %
0 0. %
0
2005 2006 2007 2008 2009 1Q10
annualized
Spread (p.p.) ROIC Average CDI
2005 2006 2007 2008 2009 1Q10a
Rental revenues 428,703 555,115 678,507 872,486 931,832 1,073,840
NOPAT 151,059 185,189 241,724 279,674 196,461 269,640
NOPAT margin 35.2% 33.4% 35.6% 32.1% 21.1% 25.1%
Invested capital turnover 0.71 x 0.56 x 0.60 x 0.53 x 0.55 x 0.57 x
ROIC 24.9% 18.8% 21.3% 17.0% 11.5% 14.3%
Average CDI 19.1% 15.3% 12.0% 11.6% 10.0% 10.1%
Spread (ROIC – CDI) p.p. 5.8 3.5 9.3 5.4 1.5 4.3
5 p.p. average spread
41

42. 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
Fleet increase (quantity) 7,342 10,346 7,957 9,930 8,642 538
The Company generated R$50.2 million of free cash flow in the 1Q10,
even with a small increase in the fleet 42

43. 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 Fleet CDI +2.02%pa - - 100.0 100.0 100.0 100.0 400.0
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
43

44. 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 have improved and remain comfortable
44

45. Managing assets
Pricing strategy
• Operating costs
Equity • Depreciation
• Financial expenses
• Taxes
• Spread
Assets (cars)
Funding
Debt Cash to renew the fleet
Profitability comes from
rental divisions
Flexible and liquid assets
45

46. Price
23
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0
5
10
15
20
25
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28
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11
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2005
26
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24
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2006
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30
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31
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16
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30
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13
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26
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6-
2007
Se
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22
RENT3 Volume
-O
ct
6-
D
ec
23
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an
10
-M
RENT3
ar
23
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RENT3 X IBOVESPA
pr
6-
Ju
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21
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2008
1-
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13
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IBOVESPA
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25
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25
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8-
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25 r
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2009
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Average daily volume negotiated of R$11.9 million in 1Q10
1-
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c
16 t
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ov
4-
Ja
n
18
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eb
0
20
40
60
80
100
120
140
160
180
200
191%
390%
Volume
Up to March 31, 2010
RENT3 Performance
46

47. Thank you!
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 the underwriters. 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.
47