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Localiza Rent a Car S.A.
                                                                                 2Q10 Results - R$ million, USGAAP




Guarulhos International Airport Brach - Sao Paulo - Brazil
Opened: 06/11/2010




                                                             July, 2010                                              1
Localiza started its business in 1973…




…with 6 used beetles, 100% financed.
                                         2
Timeline: growth by adjacencies




                                                                                                                                   80,832 cars
                                                                                                                                   80,832 cars
                                                                                                                                   9 countries
                                                                                                                                   9 countries
                                                                                                                                  458 locations
                                                                                                                                  458 locations




1973   1984   1990       1997 1999         2005               2006        2007           2008            2009             1Q10 2Q10




               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
Ownership breakdown

                    Founders


11.1%     8.6%                      12.0%                      8.6%         59.7%

Salim     Eugenio                   Antonio                    Flavio
                                Claudio Resende               Resende   Free-Float *
Mattar     Mattar




   100%                                     100%                                100%




                    * Includes 4.226.300 shares in Treasury                            4
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
Integrated business platform



    47,727 cars                                                    23,328 cars
    2.1 million clients                                            614 clients
    219 locations                                                  242 employees
    2,918 employees
                                                                   Revenue: 15.2%
    Revenue: 32.7%                                                 EBITDA: 39.4%
    EBITDA: 56.2%                      Synergies:                  Net income: 28.5%
    Net income: 68.6%
                                     bargaining power
                                     cost reduction
                                     cross selling


     9,777 cars
                                                           Capacity to sell 50,000 cars/year
     168 locations in Brazil
                                                           73.4% sold to final consumer
     71 locations in South America
                                                           48 stores
     29 employees
                                                           650 employees

    Revenue: 0.5%                                          Revenue: 51.5%
    EBITDA: 1.1%                                           EBITDA: 3.3%
    Net income: 2.8%                                       Net income: -


This integrated business platform gives Localiza flexibility and superior performance
                                                                                               6
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
Car rental financial cycle

                                               1-year cycle
Funding (PV)                                                                                     Net car sale revenue
    $26.6                                                                                               $24.7

                                                Revenue: 18.7


            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                                            18.7      100.0%           26.8     100.0%                  45.5
Cost                                                 (8.2)    -43.8%                                            (8.2)
SG&A                                                 (2.6)    -13.6%             (2.1)            -7.9%         (4.7)
Net car sale revenue                                                             24.7             92.1%         24.7
Book value of car sale                                                          (24.1)           -90.0%        (24.1)
                                      EBITDA           8.0        42.6%           0.6              2.1%          8.5
Depreciation (vehicle)                                                           (1.5)            -5.6%         (1.5)
Depreciation (non-vehicle)                            (0.4)        -2.0%                                        (0.4)
Interest on debt                                                                    (1.7)         -6.5%         (1.7)
Tax                                                   (2.3)       -12.2%             0.8           3.0%         (1.5)
                                  NET INCOME           5.3         28.4%            (1.9)         -7.0%          3.5
ROIC                                                                                                             17.5%
                                                                                                                         8
Fleet rental financial cycle

 Funding (PV)                                2-year cycle                                      Net car sale revenue
     33.8                                                                                               26.6


                                              Revenue: 32.0



            1     2   3     4   5            Expenses: (11.5)            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                                       32.0      100.0%           28.8     100.0%                60.8
   Cost                                           (9.7)      -30.4%                                         (9.7)
   SG&A                                           (1.8)        -5.5%           (2.2)         -7.6%          (3.9)
   Net car sale revenue                                                        26.6          92.4%          26.6
   Book value of car sale                                                     (25.9)        -90.0%         (25.9)
                                    EBITDA         20.6         64.1%           0.7           2.4%          21.2
   Depreciation (vehicle)                                                      (6.5)        -22.6%          (6.5)
   Depreciation (non-vehicle)                      (0.1)         -0.2%                                      (0.1)
   Interest on debt                                                            (4.6)        -16.0%          (4.6)
   Tax                                             (6.1)        -19.2%          3.1          10.8%          (3.0)
                             NET INCOME            14.3          44.8%         (7.3)        -25.3%           7.1
                      NET INCOME per year           7.2          44.8%         (3.6)        -25.3%           3.5
   ROIC                                                                                                   15.2%

                                                                                                                      9
Growth opportunities

                                       Consolidation
                                US market: 4 players 95%
                                BR market: 4 players 45%
                                1.951 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
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
Growth opportunities: consolidation



                                              Brazilian car rental agencies


                        Airport locations                                            Off-airport locations
                                     Others                                                  Unidas Hertz
         Hertz                         49                                                      74    73 Avis
                                                                                                          53        Localiza
          30                                                                                                          296




Unidas
  29
                                                      Localiza
                 Avis                                   91
                  29                                                   Others*
                                                                        1,951




                          Off-airport market is an opportunity to Localiza since it is still fragmented

                                                                                                               *Source: ABLA, 2009
                                                                                  Source: Each company website as of June 30th , 2010
                                                                                                                                        12
Growth opportunities: consolidation



         Market share - Revenues


                                             Localiza
                                              32.2%

Others
57.4%
                                                Unidas
                                                 4.9%
                                   Hertz Avis
                                   2.6% 2.9%




         Source: Euromonitor International




                                                         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

                                                                     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

                                                         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

                                                                                                                                   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. 17
Competitive advantages in renting cars




Raising        Buying              Renting                                   Selling
money           cars                cars                                      cars



                  Geographical
Strong brand                                                Scale
                    footprint

                                                    Locations in Brazil


                                             387
                                                                             275

                                                                             70

                                                                             102

                                                                             103



                                               Localiza   Unidas     Hertz    Avis
                                         *Source: Each company website as of June 30th , 2010
                                                                                                18
Competitive advantages: network footprint




Airport and off airport branches located in easy-access and intense traffic places
                                                                                     19
Competitive advantages in used car sales



    Raising                            Buying                      Renting                     Selling
    money                               cars                        cars                        cars



Unique product                       Selling directly to final consumer                   Footprint


Low mileage
Pre-owned cars                                                                            48 stores
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
                                                                                                         20
Competitive advantages: used car sales network




Around 80% of used cars are sold directly to final consumers
                                                               21
Competitive advantages: additional fleet




Cars available for sale are used by car rental division in peaks of demand
                                                                             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

                                                                                             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

                                                                                         24
Results



          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


                                                                                                                                                  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
                                                                                                            27
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
 Best IR officer – large cap
 (IR Magazine Awards, July 2010)


 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
Financials
   2Q10



             29
2Q10 Highlights


R$ millions                                 2Q09                  2Q10                Variation
Consolidated ret revenue                   416.5                 575.6    Record       38.2%

    Net rental revenues                    220.2                 284.1    Record       29.0%

EBITDA                                     109.1                 150.5    Record       37.9%

Net income                                  27.1                  57.5    Record      112.2%

Net income / Net rental revenues           12.3%                 20.2%                 7.9p.p


Quantity                                    2Q09                  2Q10                Variation
Purchased cars                             4,946                 11,323               128.9%

Sold cars                                  7,279                 10,679                46.7%

End of period fleet                        52,223                71,055                36.1%



                           Localiza is back to high levels of growth.

                                                                                                     30
Car Rental Division
                                              Net revenue (R$ million)

                                                  3.8%
                           .2 %
                      R: 29               585.7          607.8
                CAG
                                  442.7                             27.7%
                                                                              372.9                %
                  357.2                                          291.9                        36.1
        271.3
                                                                                                         191.6
                                                                                      140.8



        2005       2006           2007     2008          2009    1H09         1H10    2Q09               2Q10



                                          # daily rentals (thousand)

                                                  1.5%
                           %
                    : 32.5
                CAGR                      7,940          8,062       26.4 %
                               5,793
                  4,668                                                       4,857           3 1 .7 %
       3,411                                                     3,841
                                                                                                         2,488
                                                                                      1,889



        2005      2006         2007       2008           2009    1H09         1H10    2Q09               2Q10


In the 2Q10 revenue grew above volume due to an increase of 3.3% in the average daily rate.
                                                                                                                 31
Fleet Rental Division

                                   Net revenue (R$ million)


                                          13.2%
                       22.9%
                 CAGR:            276.9
                                                  313.4
                                                                         %
                          228.2
                                                                  14.1
                                                                                                    %
                 190.2
                                                           152.1
                                                                             173.5           16.9
         149.2
                                                                                      76.2              89.1



         2005     2006    2007    2008            2009     1H09              1H10     2Q09              2Q10



                                  # daily rentals (thousand)


                                          10.3%
                        24.3%
                  CAGR:            6,437           7,099
                          5,144                                     9.3%
                  4,188                                                       3,816
         3,351                                              3,490                             12.6%
                                                                                       1,710             1,926



         2005     2006     2007    2008            2009     1H09              1H10     2Q09              2Q10

In the 2Q10 revenue grew above volume due to an increase of 4.1% in the average daily rate.
                                                                                                                 32
Used car sales




                                         # of sold cars

                                       0.7%
                22.3%
          CAGR:               34,281          34,519
                   30,093
                                                                %
         23,174                                            43.2     21,627
18,763                                                                                    %
                                                       15,107                        46.7
                                                                                              10,679
                                                                             7,279



2005     2006       2007      2008            2009     1H09         1H10     2Q09             2Q10




                  Sale’s volumes are still presenting strong growth.
                                                                                                       33
Car Rental Division – Average age

                            Sold cars
                             (month)

                                16.6                   15.3
         12.3




        2008                    2009                   2Q10




                         Operating fleet
                             (month)


                                9.5
          6.3                                          6.6




         2008                   2009                  2Q10

The average age of the operating fleet returned to pre-crisis levels.
                                                                        34
Consolidated net revenues
                                                                                      R$ million




                  8.4%
              R: 2
          CAG                  1,855.7   1,856.3
                    1,531.7
                                                       32.1%
        1,145.4                                                1,139.4
876.9                                              862.7                     38.2%
                                                                                     575.6   Record
                                                                         416.5



2005     2006         2007      2008      2009     1H09         1H10     2Q09        2Q10




                  Consolidated net revenues grew 38.2% in the 2Q10.


                                                                                                      35
EBITDA
                                                                                                                               R$ million



                                                      - 6.8
                             : 22.0%
                                                              %
                         CAGR                 504.1
                                                                  469.7
                                   403.5                                               %
                                                                                  25.9
                 277.9   311.3                                                             282.6                 %
                                                                          224.5                             37.9
                                                                                                                     150.5   Record
                                                                                                    109.1



                 2005     2006     2007       2008                2009    1H09             1H10     2Q09             2Q10



Divisions                  2005        2006    2007               2008    2009              1H09    1H10             2Q09         2Q10


Car rental                 45.3%    42.0%     44.5%               44.3%   40.3%             39.4%   42.6%            37.9%       44.5%

Fleet rental               62.3%    69.1%     68.7%               67.0%   66.5%             67.1%   64.1%            68.8%       63.7%

Rental consolidated        51.0%    51.2%     52.6%               51.5%   49.3%             48.9%   49.5%            48.8%       50.7%


Used car sales             13.2%       4.6%    5.4%               5.5%    1.1%              1.1%    1.6%              0.8%        2.2%



                             Localiza is still presenting consistent EBITDA margins.

                                                                                                                                            36
Average depreciation per car
                                                                                      R$


                                   Car Rental
                                                                 - 43
                                                                     .8%
                                           2,546.0    2,577.0

                                                                    1,448.5
                      939.1
            492.3               332.9

            2005      2006       2007      2008        2009          1H10
                                                                      annualized




                                   Fleet Rental


                                                                - 20.5
                                          5,083.1                        %
                                                      4,371.7
                                                                   3,475.8
            2,981.3
                      2,383.3   2,395.8




             2005     2006       2007      2008       2009          1H10
                                                                    annualized

Average depreciation per car showed a strong drop when compared to the one in 2009.

                                                                                           37
Net income
                                                                                                                                                        R$ million



                                            190.2

                                  138.2                  127.4                                          3%
                                                                           116.3                  85.        106.2
                     106.5
                                                                                                                                    .2 %
                                                                                                                                1 12         57.5     Record
                                                                                           57.3
                                                                                                                          27.1


                     2005            2006   2007          2008             2009            1H09              1H10        2Q09                2Q10



Reconciliation of EBITDA x Net Income                 2008         2009      Var. R$          1H09           1H10     Var. R$          2Q09         2Q10       Var. R$
EBITDA - Car rental and fleet rental                 449.6        459.1             9.5       219.8          273.3       53.5          107.5        144.0         36.5
EBITDA - Used car sales                               54.5         10.6        (43.9)              4.7         9.3        4.6               1.6       6.5          4.9
EBITDA Consolidated                                  504.1        469.7        (34.4)         224.5          282.6       58.1          109.1        150.5         41.4
Depreciation of revenue-earning vehicles            (178.5)      (172.3)            6.2       (70.0)         (66.5)       3.5          (40.1)       (35.8)         4.3
Other depreciation                                   (18.3)       (21.0)           (2.7)      (10.7)         (10.2)       0.5              (5.4)     (5.1)         0.3
Financial expenses, net                             (133.3)      (112.9)           20.4       (65.5)         (57.4)       8.1          (26.8)       (29.2)       (2.4)
Income tax and social contribution                   (46.6)       (47.2)           (0.6)      (21.0)         (42.3)    (21.3)              (9.7)    (22.9)      (13.2)
Net income                                           127.4        116.3        (11.1)             57.3       106.2       48.9              27.1      57.5         30.4



                                             Record net income since IPO in 2005.

                                                                                                                                                                         38
Free cash flow - FCF

   Free cash flow - R$ million                               2005      2006      2007        2008      2009     1H10
   EBITDA                                                    277.9     311.3     403.5       504.1     469.7     282.6
     Used car sales revenues                                (448.2)   (590.3)   (853.2)    (983.2)    (924.5)   (586.9)
     Cost of used car sales                                  361.2     530.4     760.0       874.5     855.1     539.6
   EBITDA without used car sales revenues and costs          190.9     251.4     310.3       395.4     400.3     235.3
     (-) Income tax and social contribution – current        (32.7)    (42.7)    (63.4)      (52.8)    (49.0)    (31.0)
     Working capital variation                               (24.2)     (4.8)     13.3       (44.8)    (11.5)    (12.8)
   Cash provided before capex                                134.0     203.9     260.2       297.8     339.8     191.5
     Used car sales revenues                                 448.2     590.3     853.2       983.2     924.5     586.9
    Capex of car – renewal                                  (496.0)   (643.3)   (839.0)   (1,035.4)   (963.1)   (637.7)
   Change in amounts payable to car suppliers (capex)             -         -         -           -     15.2          -
   Net capex for renewal                                     (47.8)    (53.0)     14.2       (52.2)    (23.4)    (50.8)
   Capex - Property and equipment, net                       (28.0)    (32.7)    (23.7)      (39.9)    (21.0)    (12.8)

   Free cash flow before growth                              58.2      118.2    250.7       205.7     295.4     127.9
   Capex of car – growth                                    (194.0)   (287.0)   (221.9)    (299.9)    (241.1)    (34.9)
      Change in amounts payable to car suppliers (capex)     (25.5)    222.0     (51.0)    (188.9)     241.1      (8.3)

   Free cash flow                                          (161.3)      53.2    (22.2)    (283.1)     295.4      84.7

   Fleet increase (quantity)                                7,342     10,346    7,957       9,930     8,642     1,182


Even with the addition of 1,182 cars, the Company still generated R$84.7 million in free cash flow in the 1H10.
                                                                                                                          39
Net debt reconciliation
                                                                          R$ million




             Free cash flow
                  84.7




 Net debt                                                                 Net debt
03/31/2010                                                               06/30/2010
 -1,078.6                                                                 -1,074.6
                                       (15.0)
                                  Interest on own
                                     capital and            (65.7)
                                      dividends            Interest
                                                             and
                                                            others



                              Net debt remained stable.

                                                                                       40
Debt – profile and costs
                                                                                                          Principal on 6/30/10 - R$ million


                                                         268.6               284.8
                                                                                                                   264.0
                                      249.0                                                      238.0
                                                                                                                                      122.0
      0.4                    0.9

     2010                2011          2012              2013                 2014               2015               2016                  2017

    396.5
Cash and cash
 equivalents




Gross debt – principal               Average effective cost        2010    2011      2012    2013    2014       2015    2016      2017           Total
                                     111.1% a 115.0% of CDI
Working capital                                                       -       -       58.0    78.0       55.0    75.0   190.0         -          456.0
                                       and CDI + 1.50%pa
Debenture 2nd Issuance                   CDI + 0.59%pa                 -      -       66.6    66.6       66.8       -         -       -          200.0
Debenture 4th Issuance                   114.2% of CDI                 -      -       24.0    24.0       63.0    63.0      74.0   122.0          370.0
Debenture 1st Issuance:Total Fleet       CDI + 2.02%pa                 -      -      100.0   100.0   100.0      100.0         -       -          400.0
BNDES                                   TJLP + 3.80%pa              0.4     0.9        0.4       -          -       -         -       -            1.7
Total gross debt – principal                   -                    0.4     0.9      249.0   268.6   284.8      238.0   264.0     122.0     1,427.7
Cash and equivalents                                             (396.5)      -          -       -          -       -         -       -      (396.5)
Total net debt – principal                     -                 (396.1)    0.9      249.0   268.6   284.8      238.0   264.0     122.0     1,031.2



                Debt profile was stretched and the Company has enough cash to support its growth.

                                                                                                                                                         41
Debt – ratios
                                                                                                                         R$ million




                                                                                               1,907.8             1,963.8
                                                                         1,752.6
                                                     1,492.9
                                   1,247.7                     1,254.5
                                                                                     1,078.6             1,074.6
              900.2                          765.1
      535.8                440.4


          2005                2006              2007               2008                   2009               1H10

                                               Net debt             Fleet value



BALANCE AT THE END OF THE PERIOD                       2005        2006            2007         2008     2009            1H10
Net debt / Fleet value (USGAAP)                        60%         36%             51%          72%      57%             55%

Net debt / EBITDA (USGAAP)*                             1.9x       1.4x            1.9x         2.5x      2.3x           1.9x

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           1.3x

                                                                                                                      * annualized



                      Every indebtedness ratios improved and have remained comfortable.

                                                                                                                                      42
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
                                                                                 43
Price - R$

                                                                                         23
                                                                                            -M




                                                                                                       0
                                                                                                                5
                                                                                                                           10
                                                                                                                                         15
                                                                                                                                                     20
                                                                                                                                                                      25
                                                                                                 ay
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                                                                                                 u
                                                                                         28 g
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                                                                                                 e
                                                                                         11 p
                                                                                             -N
                                                                                                 o
                                                                                                                                                                   2005
                                                                                         26 v
                                                                                             -D
                                                                                                 ec
                                                                                           8-
                                                                                               Fe
                                                                                         24 b
                                                                                             -M
                                                                                                 a
                                                                                         10 r
                                                                                            -M
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                                                                                         22
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                                                                                                un
                                                                                           3-
                                                                                              Au
                                                                                         15 g
                                                                                             -S
                                                                                                 ep
                                                                                          30
                                                                                                                                                                   2006




                                                                                              -O
                                                                                                  c
                                                                                         14 t
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                                                                                         31
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                                                                                                a
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                                                                                         13 r
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                                                                                              Se
                                                                                                   p
                                                                                          22
                                                                                              -O
                                                                                                                                                                   2007




                                                                                                  ct
                                                                    RENT3 Vloume
                                                                                           6-
                                                                                              D
                                                                                                 e
                                                                                         23 c
                                                                                             -J
                                                                                                a
                                                                                         10 n
                                                                                             -M
                                                                                                 a
                                                                                          23 r
                                                                                              -A
                                                                                                 pr
                                                                    RENT3



                                                                                           6-
                                                                                               Ju
                                                                                                  n
                                                                                                                                                                            RENT3 X IBOVESPA




                                                                                           21
                                                                                               -J
                                                                                                  ul
                                                                                           1-
                                                                                              Se
                                                                                                   p
                                                                                          13
                                                                                              -O
                                                                                                  ct
                                                                                                                                                                   2008




                                                                                         25
                                                                                             -N
                                                                                                 o
                                                                                         12 v
                                                                    IBOVESPA




                                                                                              -J
                                                                                                an
                                                                                         25
                                                                                             -F
                                                                                                 eb
                                                                                            8-
                                                                                               Ap
                                                                                         25 r
                                                                                            -M
                                                                                                 ay
                                                                                            7-
                                                                                                Ju
                                                                                         19 l
                                                                                             -A
                                                                                                 ug
                                                                                           1-
     Average daily volume negotiated of R$13.3 million in 2Q10




                                                                                               O
                                                                                                  c
                                                                                         16 t
                                                                                                                                                                   2009




                                                                                             -N
                                                                                                 ov
                                                                                           4-
                                                                                               Ja
                                                                                         18 n
                                                                                             -F
                                                                                                 eb
                                                                                            1-
                                                                                               Ap
                                                                                         17 r
                                                                                            -M
                                                                                                 a
                                                                                         29 y
                                                                                              -J
                                                                                                un
                                                                                                       0
                                                                                                           20
                                                                                                                40
                                                                                                                     60
                                                                                                                          80
                                                                                                                                 100
                                                                                                                                         120
                                                                                                                                               140
                                                                                                                                                     160
                                                                                                                                                             180
                                                                                                                                                                      200




                                                                                                                          152%
                                                                                                                                                           447%




                                                                                                                     Volume - R$ thousand
                                                                 Up to June 30th, 2010
                                                                                                                                                                                               RENT3 Performance




44
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.


                                                                                                                                                                                                 45

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Localiza completa 2 q10 eng

  • 1. Localiza Rent a Car S.A. 2Q10 Results - R$ million, USGAAP Guarulhos International Airport Brach - Sao Paulo - Brazil Opened: 06/11/2010 July, 2010 1
  • 2. Localiza started its business in 1973… …with 6 used beetles, 100% financed. 2
  • 3. Timeline: growth by adjacencies 80,832 cars 80,832 cars 9 countries 9 countries 458 locations 458 locations 1973 1984 1990 1997 1999 2005 2006 2007 2008 2009 1Q10 2Q10 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 11.1% 8.6% 12.0% 8.6% 59.7% 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 47,727 cars 23,328 cars 2.1 million clients 614 clients 219 locations 242 employees 2,918 employees Revenue: 15.2% Revenue: 32.7% EBITDA: 39.4% EBITDA: 56.2% Synergies: Net income: 28.5% Net income: 68.6% bargaining power cost reduction cross selling 9,777 cars Capacity to sell 50,000 cars/year 168 locations in Brazil 73.4% sold to final consumer 71 locations in South America 48 stores 29 employees 650 employees Revenue: 0.5% Revenue: 51.5% EBITDA: 1.1% EBITDA: 3.3% Net income: 2.8% 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. Car rental financial cycle 1-year cycle Funding (PV) Net car sale revenue $26.6 $24.7 Revenue: 18.7 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 18.7 100.0% 26.8 100.0% 45.5 Cost (8.2) -43.8% (8.2) SG&A (2.6) -13.6% (2.1) -7.9% (4.7) Net car sale revenue 24.7 92.1% 24.7 Book value of car sale (24.1) -90.0% (24.1) EBITDA 8.0 42.6% 0.6 2.1% 8.5 Depreciation (vehicle) (1.5) -5.6% (1.5) Depreciation (non-vehicle) (0.4) -2.0% (0.4) Interest on debt (1.7) -6.5% (1.7) Tax (2.3) -12.2% 0.8 3.0% (1.5) NET INCOME 5.3 28.4% (1.9) -7.0% 3.5 ROIC 17.5% 8
  • 9. Fleet rental financial cycle Funding (PV) 2-year cycle Net car sale revenue 33.8 26.6 Revenue: 32.0 1 2 3 4 5 Expenses: (11.5) 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 32.0 100.0% 28.8 100.0% 60.8 Cost (9.7) -30.4% (9.7) SG&A (1.8) -5.5% (2.2) -7.6% (3.9) Net car sale revenue 26.6 92.4% 26.6 Book value of car sale (25.9) -90.0% (25.9) EBITDA 20.6 64.1% 0.7 2.4% 21.2 Depreciation (vehicle) (6.5) -22.6% (6.5) Depreciation (non-vehicle) (0.1) -0.2% (0.1) Interest on debt (4.6) -16.0% (4.6) Tax (6.1) -19.2% 3.1 10.8% (3.0) NET INCOME 14.3 44.8% (7.3) -25.3% 7.1 NET INCOME per year 7.2 44.8% (3.6) -25.3% 3.5 ROIC 15.2% 9
  • 10. Growth opportunities Consolidation US market: 4 players 95% BR market: 4 players 45% 1.951 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 Unidas Hertz Hertz 49 74 73 Avis 53 Localiza 30 296 Unidas 29 Localiza Avis 91 29 Others* 1,951 Off-airport market is an opportunity to Localiza since it is still fragmented *Source: ABLA, 2009 Source: Each company website as of June 30th , 2010 12
  • 13. Growth opportunities: consolidation Market share - Revenues Localiza 32.2% Others 57.4% Unidas 4.9% Hertz Avis 2.6% 2.9% Source: Euromonitor International 13
  • 14. 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 14
  • 15. 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 15
  • 16. 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 16
  • 17. 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. 17
  • 18. Competitive advantages in renting cars Raising Buying Renting Selling money cars cars cars Geographical Strong brand Scale footprint Locations in Brazil 387 275 70 102 103 Localiza Unidas Hertz Avis *Source: Each company website as of June 30th , 2010 18
  • 19. Competitive advantages: network footprint Airport and off airport branches located in easy-access and intense traffic places 19
  • 20. Competitive advantages in used car sales Raising Buying Renting Selling money cars cars cars Unique product Selling directly to final consumer Footprint Low mileage Pre-owned cars 48 stores 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 20
  • 21. Competitive advantages: used car sales network Around 80% of used cars are sold directly to final consumers 21
  • 22. Competitive advantages: additional fleet Cars available for sale are used by car rental division in peaks of demand 22
  • 23. 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 23
  • 24. 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 24
  • 25. Results 25
  • 26. 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 26
  • 27. 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 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 Best IR officer – large cap (IR Magazine Awards, July 2010) 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 2Q10 29
  • 30. 2Q10 Highlights R$ millions 2Q09 2Q10 Variation Consolidated ret revenue 416.5 575.6 Record 38.2% Net rental revenues 220.2 284.1 Record 29.0% EBITDA 109.1 150.5 Record 37.9% Net income 27.1 57.5 Record 112.2% Net income / Net rental revenues 12.3% 20.2% 7.9p.p Quantity 2Q09 2Q10 Variation Purchased cars 4,946 11,323 128.9% Sold cars 7,279 10,679 46.7% End of period fleet 52,223 71,055 36.1% Localiza is back to high levels of growth. 30
  • 31. Car Rental Division Net revenue (R$ million) 3.8% .2 % R: 29 585.7 607.8 CAG 442.7 27.7% 372.9 % 357.2 291.9 36.1 271.3 191.6 140.8 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 # daily rentals (thousand) 1.5% % : 32.5 CAGR 7,940 8,062 26.4 % 5,793 4,668 4,857 3 1 .7 % 3,411 3,841 2,488 1,889 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 In the 2Q10 revenue grew above volume due to an increase of 3.3% in the average daily rate. 31
  • 32. Fleet Rental Division Net revenue (R$ million) 13.2% 22.9% CAGR: 276.9 313.4 % 228.2 14.1 % 190.2 152.1 173.5 16.9 149.2 76.2 89.1 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 # daily rentals (thousand) 10.3% 24.3% CAGR: 6,437 7,099 5,144 9.3% 4,188 3,816 3,351 3,490 12.6% 1,710 1,926 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 In the 2Q10 revenue grew above volume due to an increase of 4.1% in the average daily rate. 32
  • 33. Used car sales # of sold cars 0.7% 22.3% CAGR: 34,281 34,519 30,093 % 23,174 43.2 21,627 18,763 % 15,107 46.7 10,679 7,279 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 Sale’s volumes are still presenting strong growth. 33
  • 34. Car Rental Division – Average age Sold cars (month) 16.6 15.3 12.3 2008 2009 2Q10 Operating fleet (month) 9.5 6.3 6.6 2008 2009 2Q10 The average age of the operating fleet returned to pre-crisis levels. 34
  • 35. Consolidated net revenues R$ million 8.4% R: 2 CAG 1,855.7 1,856.3 1,531.7 32.1% 1,145.4 1,139.4 876.9 862.7 38.2% 575.6 Record 416.5 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 Consolidated net revenues grew 38.2% in the 2Q10. 35
  • 36. EBITDA R$ million - 6.8 : 22.0% % CAGR 504.1 469.7 403.5 % 25.9 277.9 311.3 282.6 % 224.5 37.9 150.5 Record 109.1 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 Divisions 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 Car rental 45.3% 42.0% 44.5% 44.3% 40.3% 39.4% 42.6% 37.9% 44.5% Fleet rental 62.3% 69.1% 68.7% 67.0% 66.5% 67.1% 64.1% 68.8% 63.7% Rental consolidated 51.0% 51.2% 52.6% 51.5% 49.3% 48.9% 49.5% 48.8% 50.7% Used car sales 13.2% 4.6% 5.4% 5.5% 1.1% 1.1% 1.6% 0.8% 2.2% Localiza is still presenting consistent EBITDA margins. 36
  • 37. Average depreciation per car R$ Car Rental - 43 .8% 2,546.0 2,577.0 1,448.5 939.1 492.3 332.9 2005 2006 2007 2008 2009 1H10 annualized Fleet Rental - 20.5 5,083.1 % 4,371.7 3,475.8 2,981.3 2,383.3 2,395.8 2005 2006 2007 2008 2009 1H10 annualized Average depreciation per car showed a strong drop when compared to the one in 2009. 37
  • 38. Net income R$ million 190.2 138.2 127.4 3% 116.3 85. 106.2 106.5 .2 % 1 12 57.5 Record 57.3 27.1 2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10 Reconciliation of EBITDA x Net Income 2008 2009 Var. R$ 1H09 1H10 Var. R$ 2Q09 2Q10 Var. R$ EBITDA - Car rental and fleet rental 449.6 459.1 9.5 219.8 273.3 53.5 107.5 144.0 36.5 EBITDA - Used car sales 54.5 10.6 (43.9) 4.7 9.3 4.6 1.6 6.5 4.9 EBITDA Consolidated 504.1 469.7 (34.4) 224.5 282.6 58.1 109.1 150.5 41.4 Depreciation of revenue-earning vehicles (178.5) (172.3) 6.2 (70.0) (66.5) 3.5 (40.1) (35.8) 4.3 Other depreciation (18.3) (21.0) (2.7) (10.7) (10.2) 0.5 (5.4) (5.1) 0.3 Financial expenses, net (133.3) (112.9) 20.4 (65.5) (57.4) 8.1 (26.8) (29.2) (2.4) Income tax and social contribution (46.6) (47.2) (0.6) (21.0) (42.3) (21.3) (9.7) (22.9) (13.2) Net income 127.4 116.3 (11.1) 57.3 106.2 48.9 27.1 57.5 30.4 Record net income since IPO in 2005. 38
  • 39. Free cash flow - FCF Free cash flow - R$ million 2005 2006 2007 2008 2009 1H10 EBITDA 277.9 311.3 403.5 504.1 469.7 282.6 Used car sales revenues (448.2) (590.3) (853.2) (983.2) (924.5) (586.9) Cost of used car sales 361.2 530.4 760.0 874.5 855.1 539.6 EBITDA without used car sales revenues and costs 190.9 251.4 310.3 395.4 400.3 235.3 (-) Income tax and social contribution – current (32.7) (42.7) (63.4) (52.8) (49.0) (31.0) Working capital variation (24.2) (4.8) 13.3 (44.8) (11.5) (12.8) Cash provided before capex 134.0 203.9 260.2 297.8 339.8 191.5 Used car sales revenues 448.2 590.3 853.2 983.2 924.5 586.9 Capex of car – renewal (496.0) (643.3) (839.0) (1,035.4) (963.1) (637.7) Change in amounts payable to car suppliers (capex) - - - - 15.2 - Net capex for renewal (47.8) (53.0) 14.2 (52.2) (23.4) (50.8) Capex - Property and equipment, net (28.0) (32.7) (23.7) (39.9) (21.0) (12.8) Free cash flow before growth 58.2 118.2 250.7 205.7 295.4 127.9 Capex of car – growth (194.0) (287.0) (221.9) (299.9) (241.1) (34.9) Change in amounts payable to car suppliers (capex) (25.5) 222.0 (51.0) (188.9) 241.1 (8.3) Free cash flow (161.3) 53.2 (22.2) (283.1) 295.4 84.7 Fleet increase (quantity) 7,342 10,346 7,957 9,930 8,642 1,182 Even with the addition of 1,182 cars, the Company still generated R$84.7 million in free cash flow in the 1H10. 39
  • 40. Net debt reconciliation R$ million Free cash flow 84.7 Net debt Net debt 03/31/2010 06/30/2010 -1,078.6 -1,074.6 (15.0) Interest on own capital and (65.7) dividends Interest and others Net debt remained stable. 40
  • 41. Debt – profile and costs Principal on 6/30/10 - R$ million 268.6 284.8 264.0 249.0 238.0 122.0 0.4 0.9 2010 2011 2012 2013 2014 2015 2016 2017 396.5 Cash and cash equivalents Gross debt – principal Average effective cost 2010 2011 2012 2013 2014 2015 2016 2017 Total 111.1% a 115.0% of CDI Working capital - - 58.0 78.0 55.0 75.0 190.0 - 456.0 and CDI + 1.50%pa Debenture 2nd Issuance CDI + 0.59%pa - - 66.6 66.6 66.8 - - - 200.0 Debenture 4th Issuance 114.2% of CDI - - 24.0 24.0 63.0 63.0 74.0 122.0 370.0 Debenture 1st Issuance:Total Fleet CDI + 2.02%pa - - 100.0 100.0 100.0 100.0 - - 400.0 BNDES TJLP + 3.80%pa 0.4 0.9 0.4 - - - - - 1.7 Total gross debt – principal - 0.4 0.9 249.0 268.6 284.8 238.0 264.0 122.0 1,427.7 Cash and equivalents (396.5) - - - - - - - (396.5) Total net debt – principal - (396.1) 0.9 249.0 268.6 284.8 238.0 264.0 122.0 1,031.2 Debt profile was stretched and the Company has enough cash to support its growth. 41
  • 42. Debt – ratios R$ million 1,907.8 1,963.8 1,752.6 1,492.9 1,247.7 1,254.5 1,078.6 1,074.6 900.2 765.1 535.8 440.4 2005 2006 2007 2008 2009 1H10 Net debt Fleet value BALANCE AT THE END OF THE PERIOD 2005 2006 2007 2008 2009 1H10 Net debt / Fleet value (USGAAP) 60% 36% 51% 72% 57% 55% Net debt / EBITDA (USGAAP)* 1.9x 1.4x 1.9x 2.5x 2.3x 1.9x 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 1.3x * annualized Every indebtedness ratios improved and have remained comfortable. 42
  • 43. 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 43
  • 44. Price - R$ 23 -M 0 5 10 15 20 25 ay 5- Ju 16 l -A u 28 g -S e 11 p -N o 2005 26 v -D ec 8- Fe 24 b -M a 10 r -M ay 22 -J un 3- Au 15 g -S ep 30 2006 -O c 14 t -D ec 31 -J a 16 n -M a 30 r -A p 13 r -J un 26 -J ul 6- Se p 22 -O 2007 ct RENT3 Vloume 6- D e 23 c -J a 10 n -M a 23 r -A pr RENT3 6- Ju n RENT3 X IBOVESPA 21 -J ul 1- Se p 13 -O ct 2008 25 -N o 12 v IBOVESPA -J an 25 -F eb 8- Ap 25 r -M ay 7- Ju 19 l -A ug 1- Average daily volume negotiated of R$13.3 million in 2Q10 O c 16 t 2009 -N ov 4- Ja 18 n -F eb 1- Ap 17 r -M a 29 y -J un 0 20 40 60 80 100 120 140 160 180 200 152% 447% Volume - R$ thousand Up to June 30th, 2010 RENT3 Performance 44
  • 45. 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. 45