Apresentação institucional eng (pp tminimizer)

1August, 2012

2

1.Company overview

2.Main business divisions

Car rental

Fleet rental

Seminovos

3.Consolidated

4.Debt and cash

5.Key value drivers

Agenda

3

Company: milestones

1973 1982 1983 20041990 2005 2011

Phase I – Rise to #1

1973 – Founded in Belo Horizonte/MG

Late 70’s - Acquisitions in the

Northeast of Brazil

1981 – Brazilian car rental leader in #

of branches

Phase II – Expansion

1984 – Expansion strategy by

adjacencies: Franchising


adjacencies: Seminovos

1997 – PE firm DL&J enters at a market

cap of US$ 150 mm


adjacencies: Fleet rental

Phase III – Reaching Scale

2005 – IPO: market cap of US$ 295 mm

2011 – Rated as investment grade by

Moody’s, Fitch and more recently S&P

2012 – ADR level I

06/30/2012 – Market cap pf US$3.1 bi

with ADTV of 37.1 million

4

100.0%100.0%100.0%

Company: Ownership breakdown

Salim Mattar Eugenio Mattar Antonio Claudio

Resende

Flavio Resende Free-float

7.1% 66.3%10.5%7.1%9.0%

Founders

5

Company: integrated business platform

This integrated business platform gives Localiza flexibility and superior performance.

Synergies:

bargaining power

cost reduction

cross selling

13,389 cars

201 locations in Brazil

48 locations in South America

34 employees

66.6% sold to final consumer

71 stores

951 employees

58,436 cars

3.1 million clients

253 locations

4,057 employees

31,412 cars

699 clients

343 employees

Based on the 2Q12

6

Company: Business platform divisions

Car rental

Localiza car rental rents to

individuals or businesses

at airports and other

locations.

The traditional backbone of

Localiza. With its giant fleet

that gets renewed annually,

it lays the foundation for all

scale effects captured by

the group as a whole.

Fleet management

Total Fleet, offering

customized fleet for terms

of 2-3 years.

Total Fleet is seen as an

additional business that

generates value by

leveraging synergies

created by the integrated

platform approach.

Used car sales

Support area, with the

objective to sell the

Company’s used cars and

add know-how in buying

cars and to estimate the

residual value.

As a support business

activity, Seminovos enables

the sell 70% of used cars

directly to the final

customer, thereby

maximizing the residual

value of used rental cars.

Franchising

Supplementary business,

with the purpose to expand

the brand’s network.

Franchising is seen as a

primarily strategic business

by management – the

revenues generated are

low, however brand and

network expand at

minimum capital

expenditure.

7

1.Company overview


Car rental

Fleet rental

Seminovos

3.Consolidated

4.Debt and cash

5.Key value drivers

Agenda

8

Overview

64.688

47.517

35.686

2011

2009

2007

Corporate fleet size

247

214

178

2011

2009

2007

Corporate locations

Financial performance

428.0585.2

980.7

2007 2009 2011

Car rental net revenues EBITDA margin (%)

*Source: each company website (May, 2012)

46.0% 41.9%46.9%

63.1%

Compact cars

Fleet composition

36.9%

Others

9

71 6032

Overview

Source: Each company’s website as of May, 2012.

Localiza holds an extraordinarily strong position in the Brazilian market, as over decades it has

been successfully competing against major global players through local scale.

279 312 346 381 415 449 452

254

2005 2006 2007 2008 2009 2010 2011 1H12

Car rental distribution (Brazil)

120

107

62

# of branches # of cities

452

289

Localiza Hertz Unidas Avis

318

10Source: ABLA (Brazilian Car Rental Association) and each company’s website (May, 2012)

Off-airport market is still fragmented.

Airport locations Off-airport locations

Car rental locations in Brazil

Others

36Avis

35

Unidas

34

Localiza

101

Hertz

42

Avis

27

Unidas

73

Localiza

351 Hertz

78

Others

2079

Overview

36.5%

Car Rental market share - Brazil

(# of cars)

11

Main competitors

Market share* 6.7% 3.1% 2.8%

Airport locations 34 35 42

Off-airport locations 73 27 78

Strengths• Capitalized by three

Private Equity funds

• Local expertise

• International brand

• Local expertise

• International brand

• Local expertise

Weaknesses

• Weak footprint

• Relatively weak brand

• Unclear priorities between

rental and fleet business

• Used car sales retail

network

• Weak footprint in Brazil

• Master franchisee in Brazil in

“Chapter 11”

• Used car sales retail network

• Weak footprint in Brazil


*Source: Roland Berger report, as of June 21, 2012, based on 2010 figures

12

Drivers

71

128154

179

2003 2009 2010 2011

Air traffic passengers - million

GDP per capita

(R$ thousands)

6.9 7.5 8.4 9.510.7 11.7 12.8

14.216.0 16.6

19.0 21.3

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

151

260

465510

545

645

240180 200

350

415380

300

18% 16% 15% 13%

31%

35%

15%

37%38%

51%

22% 20%

27%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e

Monthly minimum salary (R$) Daily rental price over minimum salary (%)

Car rental affordability

Investments in Brazil

679

343

182

85 83 107

Oil/

gas

Trans

portat

ion

Ene

rgy

Wat

er/s

ewag

e

Indus

try

Oth

ers

13

2011 - Would you recommend Localiza? YES!

Customers recognize premium service and recommend it!

94.6% 94.8% 96.0% 95.5% 95.3% 96.3% 95.9%

2005 2006 2007 2008 2009 2010 2011

Source: based on “Fale Fácil” satisfaction survey answered by more than 350,000 customers in 2011

95.9%

Satisfaction survey

14

$27.5Car acquisition

Net car sale revenue

$26.4

1 2 3 4 5 20 21 22 23 24

1 - year cycle

Expenses, interest and tax

Revenue

Financial cycle

Spread

10,3p.p.

Total

per year

R$ % R$ % R$

Net Revenues 19,1 100,0% 29,2 100,0% 48,3

Cost s (7,4) - 0,0% (7,4)

SG&A (2,7) -14,1% (2,8) -9,6% (5,5)

Net car sale revenue 26,4 90,4% 26,4

Book value of car sale (25,7) -90,0% (25,7)

EBITDA 9,0 47,2% 0,7 2,4% 9,7

Depreciation (vehicle) (2,0) -6,8% (2,0)

Depreciation (non-vehicle) (0,3) -1,6% (0,3)

Interest on debt (2,4) -8,2% (2,4)

Tax (2,7) -14,2% 1,1 3,8% (1,6)

NET INCOME 6,0 31,5% (2,6) -8,9% 3,4

NOPAT 5,2

ROIC 18,9%

Cost of debt after tax (CDI+1,5%) 8,6%

Fleet Rental Seminovos

per operating car per operating car2011

15

Figures

Renting cars 2010 2011

Net revenues 802.2 980.7

EBITDA 363.3 460.3

Depreciation (81.1) (103.4)

EBIT 282.2 356.9

Financial expenses (87.1) (123.8)

EBT 195.1 233.1

2010 2011

18.7 19.1

8.5 9.0

(1.9) (2.0)

9.5 10.1

(2.0) (2.4)

4.5 4.5

Selling cars 2010 2011

Net revenues 1,101.1 1,241.1

EBITDA 32.1 30.0


EBIT 27.0 23.9

EBT 27.0 23.9

2010 2011

27.8 29.2

0.8 0.7

(0.1) (0.1)

0.7 0.6

0.7 0.6

Per operating car

Per car sold

End of period fleet 61,445 64,688

Average operating fleet 42,903 51,285

Average rented fleet 29,646 35,348

- -

- -

- -

Number of cars sold 39,658 42,483 - -

16

Net revenues (R$ million)

# daily rentals (thousand)

3,4114,668

5,793

7,940 8,062

10,734

12,794

6,243 6,664

3,179 3,334

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

258.6346.1

428.0

565.2 585.2

802.2

980.7

472.4532.3

239.4 264.3

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

Volumes and revenues

Revenue grew above volume due to the increase in the average rental rate per car.

17

74.2%68.9%68.9%69.1%68.8%67.9%70.7%65.5%58.8%

2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12

58,43663,50064,68861,445

47,51739,112

35,68631,37324,103

2005 2006 2007 2008 2009 2010 2011 1H11 1H12

Utilization rate

Fleet

Fleet and utilization rate

18

Financial crisis effectHot used car market 5.468,2

2.062,31.683,91.536,0

332,9

2.546,0 2.577,0

939,1492,3

2005 2006 2007 2008 2009 2010 2011 Jan-Apr/12* 1H12*

* Annualized

Reflex of the

IPI reduction

Reflex of the

IPI reduction

Depreciation was impacted by the decrease in car prices due to the IPI reduction.

Average depreciation per car

DivisionAdditional estimated depreciation

2Q12 After 2Q12 Total

Car rental85 (*) 31 116

73% 27% 100%

Quantity of cars by year of maturity of estimated useful life

2012 2013 2014 2015 Total

45,486 12,187 143 5 57,821

79% 21% 0% 0% 100%

R$ million Fleet as of May, 2012

Additional depreciation related to the IPI reduction on May, 2012

(*) Additional estimated depreciation of R$31 million will be accounted prospectively in the next 12 months

19

1.Company overview


Car rental

Fleet rental

Seminovos

3.Consolidated

4.Debt and cash

5.Key value drivers

Agenda

20

687

584

456

2011

2009

2007

Number of clients

Overview

31,629

22,778

17,790

2011

2009

2007

Fleet size

Financial performance

219.8

303.2

455.0

2007 2009 2011

Fleet rental net revenues EBITDA margin (%)

71.3% 68.7% 68.6%

42.6%

Compact cars

Fleet composition

57.4%

Others

21

13.9%

Fleet Rental division - Brazil

(# of cars)

Source: based on ABLA 2012 yearbook

The business greatly profits from synergies with its car rental affiliate, and as the Brazilian economy

matures, one can expect a higher percentage of companies to take advantage of fleet rental.

Overview

22

Main competitors

Market share* 9.5% 7.1%

Revenues (R$ million) 272.5 204.7

Fleet size 27,262 16,418

Strengths• Brazil’s second player

• Successful IPO 04/2012

• Capitalized

• Synergies with its rental car

business area

Weaknesses

• Low profitability (competing

on price in the pursuit of

market share)

• Depreciation calculus


• Loss making in the last six

years (competing on price in

the pursuit of market share)


*Source: Roland Berger report, as of June 21, 2012, based on 2011 figures.

23Source: ABLA and Datamonitor

Less than 50% of targeted fleet is rented.

Outsourced fleet penetration

Corporate fleet:

4,200,000

Targeted fleet:

500,000

Rented fleet:

245,000

31,629

Brazilian Market World

5.4%8.9%

13.3%16.5%

24.5%

37.4%

46.9%

58.3%

Bra

zil

Poland

Cze

ch R

epublic

Ger

man

y

France

Spain

Uk

Holla

nd

Drivers

24



$26.3

1 2 3 4 5 20 21 22 23 24Expenses, interest and tax

Revenue

Financial cycle

Spread

7,6p.p.

Total

per year

R$ % R$ % R$

Net Revenues 16,3 100,0% 28,6 100,0% 44,9

Costs (4,2) - 0,0% (4,2)

SG&A (0,9) -5,5% (2,3) -8,0% (3,2)



EBITDA 11,2 68,7% 1,4 4,9% 12,6




Tax (3,4) -20,6% 1,4 5,0% (1,9)

NET INCOME 7,8 47,8% (3,4) -11,7% 4,4

NOPAT 5,8

ROIC 16,2%



per operating car per operating car2011

2 - year cycle

25

Renting cars 2010 2011


EBITDA 245.6 312.1


EBIT 164.5 196.3


EBT 121.1 139.3

2010 2011

15.8 16.3

10.7 11.2

(3.5) (4.2)

7.2 7.0

(1.9) (2.0)

5.3 5.0

Selling cars 2010 2011


EBITDA 2.3 11.4

Depreciation (0.1) -

EBIT 2.2 11.4

EBT 2.2 11.4

2010 2011

28.9 28.6

0.3 1.4

(0.0) -

0.3 1.4

0.3 1.4

Per car sold

End of period fleet 26,615 31,629


Average rented fleet 22,343 26,676

- -

- -

- -

Number of cars sold 7,627 7,929 - -

Figures

Per operating car

26

93.0%99.0%98.0%

Users VIP Users Contract managers

Customers recognize good service and recommend it!

Source: Users and VIP users based on phone interviews made by the Company with customers. Contract managers made by an independent research: Vox Populi

2011 - Would you recommend Total Fleet? YES!

98.0%

Satisfaction survey

27

Net revenues (R$ million)

# daily rentals (thousand)

3,3514,188

5,1446,437

7,0998,044

9,603

4,6255,248

2,372 2,637

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

142.0184.0

219.8268.4

303.2

361.1

455.0

215.7261.3

111.0131.8

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

Volumes and revenues

Revenues reflect the interest and depreciation assumptions at the time of the agreement.

28

97.7%96.1%95.8%97.5%96.8%94.0%96.1%96.5%96.9%

2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12

31,41228,654

31,629

26,61522,77823,403

17,79014,630

11,762

2005 2006 2007 2008 2009 2010 2011 1H11 1H12

Fleet

Fleet and utilization rate

Utilization rate

29

Average depreciation per car

5.406,3

4.289,34.133,03.509,7

2.395,8

5.083,14.371,7

2.383,3

2.981,3

2005 2006 2007 2008 2009 2010 2011 Jan-Apr/12* 1H12*

* Annualized

Reflex of the

IPI reduction

DivisionAdditional estimated depreciation

2Q12 After 2Q12 Total

Fleet rental15 (*) 49 64

23% 77% 100%

Quantity of cars by year of maturity of estimated useful life

2012 2013 2014 2015 Total

5,340 10,303 11,590 4,055 31,288

17% 33% 37% 13% 100%

R$ million Fleet as of May, 2012

Additional depreciation related to the IPI reduction on May, 2012

Depreciation was impacted by the decrease in car prices due to the IPI reduction.

(*) Additional estimated depreciation of R$49 million will be accounted prospectively throughout the prospective life of the cars

30

1.Company overview


Car rental

Fleet rental

Seminovos

3.Consolidated

4.Debt and cash

5.Key value drivers

Agenda

31Source: Fenabrave 2011

Localiza launched Seminovos in 1993, a brand new concept featuring younger cars.

Overview

Combining the Localiza brand with a growing network of stores

enables the firm to continuously sell thousands of cars at market prices.

32

Used car sales net revenues

850.5 922.4

1,468.1

2007 2009 2011

Overview

34.519

30.093

50.7722011

2009

2007

Cars sold

2 years old Seminovos0km SeminovosUsed Seminovos

1.5% 10.6%

2011 Up to 2 years

476,827

2011 Brand news

3,425,499

0.6%

2011 Used cars

8,862,951

33

Examples• Dealers

• Fiat, VW, Ford, GM most

successful

• Rental operators

• Locamerica, Hertz

• Retailers

• “Loja do carro”

• “Auto malls” and

“Cidade do

automóvel”

Strengths

• Brand and perceived

image/ experience

• Support often directly

from the OEM’s

• Flexibility in trade-in cars

• Strong media presence

• Tailored to popular

customer demand at

purchase, hence likely

to be an attractive value

proposition when for

sale

• Often appeal to lower

income classes, with

older cars

• Occasionally

specialized in niches

• Comfort and

convenience

• Variety of models

and brands

• Flexibility in

exchange

Weaknesses

• Used cars not a core

business

• Cars often older than 2

years

• Stigma about heavy

usage during rental car

years

• Weak retail network

• Geographical

concentration (SP)

• Lower media presence

• No brand recognition

(lower reputation

market)

• Financing options with

higher interest rates

• Lower media

presence

• Cars often older than

2 years

• It hasn’t been

successful

Points of sale • 3,714 (Anfavea) • 95* • 45,600 (Fenauto) • 71 (Fenauto)

*Seminovos Localiza and main rentals, estimates

Main competitors

34

5.5

4.2

4.0

3.6

2.1

2.0

1.9

1.8

1.3

Brazil

Argentina

Russia

South Korea

Japan

France

Germany

United Kingdon

USA

# of inhabitants per car (2011)

8.0 7.9

7.4

6.9

6.5

5.9

5.5

2005 2006 2007 2008 2009 2010 2011

Drivers

# of inhabitants per car - Brazil

7.98.9

11.9

15.817.4

6.85.6

7.0 8.98.47.17.37.1

6.7

3.53.33.02.72.31.81.6

2005 2006 2007 2008 2009 2010 2011

Individuals with

affordability to

buy a new car*

* Population with affordability to buy a new compact car (R$25,000) with 20% downpayment

Brazilian car market: new x used car market and affordability

4.4x 3.7x 3.1x 2.7x 2.4x 2.5x 2.6x

New cars

Used cars

35

Customers recognize our quality and recommend it!

94.0%92.3%94.0%

2009 2010 2011

Source: based on phone interviews made by the Company with customers started in 2009

2011 - Would you recommend Seminovos? YES!

94.0%

Satisfaction survey

36

Network increase

Used car sales network has increased by 5 stores.

# of points of sale

2632 35

4955

6671

13

2005 2006 2007 2008 2009 2010 2011 1H12

+5

37

Car sales per street storeMonthly average

82 82 82

59

74 73 7074

2008 2009 2010 2011 1Q12 Apr-12 May-12 Jun-12

Number of sold cars is weighed by number of opened stores in the period

Productivity has improved, contributing to the reduction of fixed cost per car sold.

Car sold per store/month

38

1.Company overview


Car rental

Fleet rental

Seminovos

3.Consolidated

4.Debt and cash

5.Key value drivers

Agenda

39

38%57%

5%

2011 Consolidated P&L

P&L 2010 2011

Net revenues 2,497.2 2,918.1

EBITDA 649.5 821.3


EBIT 482.1 595.7


EBT 352.0 416.7

Operating data


Cars purchased 65,934 59,950

Cars sold 47,285 50,772

16% 34%

50%

Revenues

EBITDA

40

26,10533,520

38,05044,211 43,161

20,60218,76323,174

30,09334,281 34,519

27,789

13,198

28,667

59,950

21,921

65,934

12,47814,50424,059

47,285 50,772

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

7,34210,346 7,957

18,649

9,930 8,6424,608

(5,868)

9,178

8,124 (1,306)

690.0930.3

1,060.9

1,335.31,204.2

1,910.41,776.5

628.5 593.8379.0446.5

588.8

850.5980.8 922.4

1,321.91,468.1

693.3 762.7

352.7 389.3

825.6

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

243.5341.5

210.4

308.4

354.5281.8

588.5

132.3 (134.2)241.1

(10.3)

Net Investment

Purchased cars Sold cars* It does not include theft / crashed cars.

Fleet increase * (quantity)

Net investment (R$ million)

Purchases (accessories included) Net used car sales revenues

Car purchases were adjusted to improve fleet productivity.

41

31,373 35,686 39,112 47,51761,445 64,688 63,500 58,43611,762

14,63017,790

23,40322,778

26,615 31,629 28,654 31,412

24,103

2005 2006 2007 2008 2009 2010 2011 1H11 1H12

35,86546,003

53,47662,515

70,295

88,060 89,84892,15496,317

End of period fleetQuantity

Car rental Fleet rental

Fleet is adjusted to demand.

42

408.4 537.4 655.0 842.9 898.5 1,175.3 1,450.0

694.6 801.6353.7 400.3

446.5588.8

850.5980.8 922.4

1,468.1

693.3 762.7

352.7 389.3

1,321.9

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

854.91,126.2

1,505.51,823.7

2,918.1

1,820.9

2,497.2

706.4 789.6

1,387.91,564.3

Consolidated net revenuesR$ million

Rentals Seminovos

In the 2Q12, net revenues grew due to the increase of 13.2% in rental and 10.4% in Seminovos revenues

43

215.7200.6

425.7386.8

821.3

649.5

469.7504.1

403.5311.3277.9

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

Margin per division 2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

Car rental 47.5% 43.4% 46.0% 45.9% 41.9% 45.3% 46.9% 45.1% 41.3% 46.1% 40.6%

Fleet rental 65.5% 71.4% 71.3% 69.1% 68.7% 68.0% 68.6% 67.1% 66.0% 68.5% 65.8%

Rental consolidated 53.6% 52.9% 54.5% 53.3% 51.1% 52.3% 53.8% 52.0% 49.4% 53.1% 48.9%

Seminovos 13.2% 4.6% 5.5% 5.6% 1.1% 2.6% 2.8% 3.7% 3.9% 3.6% 5.1%

EBITDA R$ million

EBITDA margin in the 2Q12 was impacted by complement bonuses and accessories expenses.

44

10.7

74.083.4

137.6

291.6250.5

116.3127.4

190.2

138.2106.5

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

Consolidated net incomeR$ million

EBITDA x net income Reconciliation 2009 2010 2011 Var. R$ Var. % 1H11 1H12 Var. R$ Var. % 2Q11 2Q12 Var. R$ Var. %

Consolidated EBITDA 469.7 649.5 821.3 171.8 26.5% 386.8 425.7 38.9 10.1% 200.6 215.7 15.1 7.5%

Car depreciation(172.3) (146.3) (201.5) (55.2) 37.7% (89.7) (223.3) (133.6) 148.9% (43.3) (165.3) (122.0) 281.8%

Other property and equipment dep. (21.0) (21.1) (24.1) (3.0) 14.2% (12.3) (15.6) (3.3) 26.8% (6.3) (8.1) (1.8) 28.6%

Financial expenses, net (112.9) (130.1) (179.0) (48.9) 37.6% (88.0) (77.7) 10.3 -11.7% (45.2) (34.1) 11.1 -24.6%

Income tax and social contribution (47.2) (101.5) (125.1) (23.6) 23.3% (59.2) (25.7) 33.5 -56.6% (31.8) 2.5 34.3 -107.9%

Net income 116.3 250.5 291.6 41.1 16.4% 137.6 83.4 (54.2) -39.4% 74.0 10.7 (63.3) -85.5%

Excluding the additional depreciation, 1H12 net income would have reached R$149.5 million.

45

SWOT Analysis: Localiza business platform

• Unrivaled local scale

• Vertical integration, creating synergies for all four

businesses

• Strong business operating performance and

experienced leadership

• Strong footprint in Brazil’s extreme traffic locations

Strengths

Opportunities

Weaknesses

Threats

• Increase in market share through further

consolidation of Brazilian rental car market

• Underdeveloped fleet outsorcing in Brazil

• Upcoming mega events in Brazil

• Positive outlook for Brazilian business and tourism

•Any measures of the Brazilian government which

impact car sales prices, potentially lowering asset

value (e.g. new car sales tax)

• New competitors entering the market (rental car or

fleet management)

• Increasing fuel price

• Strong focus on airport locations

• Renewal of airport concessions costly

• Dependence on passengers travelling by air (growth

limited by Brazilian infrastructure)

• Weak footprint outside of Brazil, resulting in

exposure to national economic development

• Dependence on long-term capital to finance renewal

of fleet

According to Roland Berger report as of June 21, 2012

Localiza’s brand is top of mind in Brazil.

Localiza doesn’t see it as a weakness or a threat

46

1.Company overview


Car rental

Fleet rental

Seminovos

3.Consolidated

4.Debt and cash

5.Key value drivers

Agenda

4747

Free cash flow - FCF

Free cash flow - R$ million 2005 2006 2007 2008 2009 2010 2011 1H12

EBITDA 277.9 311.3 403.5 504.1 469.7 649.5 821.3 425.7

Used car sales net revenues (446.5) (588.8) (850.5) (980.8) (922.4) (1,321.9) (1,468.1) (762.7)

Depreciated cost of used car sales (*) 361.2 530.4 760.0 874.5 855.1 1,203.2 1,328.6 687.7

(-) Income tax and social contribution (32.7) (42.7) (63.4) (52.8) (49.0) (57.8) (83.0) (54.9)

Working capital variation (24.2) (4.8) 13.3 (44.8) (11.5) 54.5 (83.9) (18.9)

Cash provided before capex 135.7 205.4 262.9 300.2 341.9 527.5 514.9 276.9

Used car sales net revenues 446.5 588.8 850.5 980.8 922.4 1,321.9 1,468.1 762.7

Capex of car - renewal (496.0) (643.3) (839.0) (1,035.4) (947.9) (1,370.1) (1,504.5) (628.5)

Net capex for renewal (49.5) (54.5) 11.5 (54.6) (25.5) (48.2) (36.4) 134.2

Capex – other property and equipment, net (28.0) (32.7) (23.7) (39.9) (21.0) (51.1) (63.0) (36.0)

Free cash flow before growth 58.2 118.2 250.7 205.7 295.4 428.2 415.5 375.1

Capex of car - growth (194.0) (287.0) (221.9) (299.9) (241.1) (540.3) (272.0) -

Change in accounts payable to car suppliers (capex) (25.5) 222.0 (51.0) (188.9) 241.1 111.3 32.7 (132.8)

Net capex for fleet growth (219.5) (65.0) (272.9) (488.8) 0.0 (429.0) (239.3) (132.8)

Fleet increase – quantity 7,342 10,346 7,957 9,930 8,642 18,649 9,178 (5,868)

Free cash flow after growth (161.3) 53.2 (22.2) (283.1) 295.4 (0.8) 176.2 242.3

(*) Without tecnical discount deduction up to 2010 (see item 18 – Glossary)

48

Changes in net debt in 1H12 (R$ million)

Net debt was reduced by R$108.5 million (-8.0%).

- 1,254.9

(78.9)

Interest

(54.9)

Dividends

Net debt

06/30/2012

FCF242.3

- 1,363.4

Net debt

12/31/2011

49

52.026.0

432.0

562.0

303.5323.5161.8

16.5

2012 2013 2014 2015 2016 2017 2018 2019

Cash

673,9

Debt profileR$ million

Debt profile in 06/30/2012- principal (R$ million)

Strong cash position and comfortable debt profile.

In the 1H12, all in spread was of 1.3p.p. above the Selic rate.

5050

END OF PERIOD BALANCE 2005 2006 2007 2008 2009 2010 2011(**) 1H12 (**)

Net debt / Fleet value 60% 36% 51% 72% 57% 52% 51% 52%

Net debt / EBITDA (*) 1.9x 1.4x 1.9x 2.5x 2.3x 2.0x 1.7x 1.5x

Net debt / Equity 1.4x 0.7x 1.3x 2.0x 1.5x 1.4x 1.2x 1.1x

EBITDA / Financial expenses, net 3.3x 4.8x 5.4x 3.8x 4.2x 5.0x 4.6x 5.5x

535.8 440.4765.1

1,254.51,078.6

1,281.1 1,363.4 1,254.9

900.21,247.7

1,492.91,752.6

1,907.8

2,446.7 2,681.72,391.2

2005 2006 2007 2008 2009 2010 2011 1H12

(*) annualized

(**) From January 1st 2011, adress financial statements in IFRS

Debt – ratiosR$ million

Net debt Fleet value

The Company presents conservative indebtedness ratios.

51

1.Company overview


Car rental

Fleet rental

Seminovos

3.Consolidated

4.Debt and cash

5.Key value drivers

Agenda

52

Adding value to shareholders

(1) (2) (3)(1)

Growth

(2)

Ability to sustain(competitive advantages)

(3)

1- Spread around 8p.p. on the invested capital above the cost of debt after taxes.

2- Growth: GDP elasticity has been 5.7x over the last 6 years.

3- Localiza’s competitive strengths: the competitive strengths in each step of the

process allow the Company to grow profitably on a sustainable manner.

Key value drivers

SpreadROIC > DEBT COST

53

13,60%10,90%

8,40% 8,84% 7,59% 7,33% 8,60%7,05%

24,80%

18,70%21,25%

17,03%

11,54%

16,94% 17,12%15,10%

2005 2006 2007 2008 2009 2010 2011 1H12

annualized

Cost of debt after tax ROIC

Spread

2005 2006 2007 2008 2009 2010 2011 1H12 a

Average capital investment - R$ million 606.3 986.2 1,137.5 1,642.3 1,702.3 1,984.6 2,445.3 2,645.6

NOPAT margin (over rental net revenues) 37.0% 34.5% 36.9% 32.1%* 21.9% 28.6% 28.9% 24.9%*

Turnover of average capital investment

(over rental net revenues) 0.67x 0.55x 0.58x 0.53x 0.53x 0.59x 0.59x 0.61x

ROIC 24.8% 18.7% 21.3% 17.0% 11.5% 16.9% 17.1% 15.1%

Interest on debt after tax 13.60% 10.90% 8.40% 8.84% 7.59% 7.33% 8.60% 7.05%

Spread (ROIC – Interest after tax) - p.p. 11.2 7.8 12.9 8.2 4.0 9.6 8.5 8.1

11.2p.p.7.8p.p. 12.9p.p.

8.2p.p.4.0p.p.

9.6p.p. 8.5p.p.8.1p.p.

ROIC and spread reflect the Company’s competitive pricing strategy.

* Excludes additional fleet depreciation, following the concept recommended by Stern Stewart

54

2005 2006 2007 2008 2009 2010 2011

5.7x

Localiza

GDP

Sector

2.9x

GDP elasticity

Localiza’s competitive advantages resulted in a growth above the industry level.

Rental revenues real growth elasticity x GDP

55

331.4 408.4 537.4 655.0 842.9 898.51,175.3

1,450.0303.0

446.5588.8

850.5

980.8 922.4

1,321.9

1,468.1

515.7457.4402.7296.1234.1225.9212.9

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Average growth of EBITDA is in line with the average growth of rental revenues

Growth and profitability track record

Consolidated revenues

Consolidated EBITDA

634.4854.9

1,126.2

1,505.5

1,823.7 1,820.9

2,497.2

2,918.1

Consolidated Rentals Used car sales

CAGR:

23.4%

4.3

42 62 85.2134.3 154 149.9 152.1 197.8

278.1 311.4403.5

504.1 469.7

649.5

821.3

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

-0.6 7.55.7 3.2 4.0 6.1 5.2

1.9Average

1.12.71.34.30.30.03.4GDP 2.9

56

Selling cars

Buying cars

Renting cars

Raising money

Ability to sustain: competitive advantages

brAAA

AA+ (bra)

Aa1.br

Localiza managed to close the cycle of the rental business through

integration, capturing competitive advantages at every step.

Localiza’s bought 2.3% of the

main automakers sales in 2011

452 locations

Top of Mind brand

Strong know-how

Stable management

Sales to final consumer

71 points of sale

Additional fleet during peaks of demand

57

IR Team

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.

Nora LanariRoberto Mendes Silvio Guerra

CFO - RI RI RI

Website: www.localiza.com/ir E-mail: [email protected] Phone: 55 31 3247-7024

58

Localiza x Peers

59

2011 Consolidated P&L

Financial statements

per operating car Adjusted

Net revenues 2,918.1 670.9 390.7

EBITDA 821.3 167.1 167.9

Depreciation (225.6) (120.0) (89.2)

EBIT 595.7 47.0 78.7

Financial expenses (179.0) (111.1) (83.2)

EBT 416.7 (64.1) (4.5)

Operating data

Average operating fleet 63,206 24,455 21,590

Cars purchased 59,950 15,341 11,052

Cars sold 50,412 12,742 5,489

60


per operating car Adjusted

Net revenues 16.3 13.0 12.6

EBITDA 11.2 8.3 7.7

Depreciation (4.2) (4.6) (4.1)

EBIT 7.0 3.7 3.6

Financial expenses (2.0) (3.9) (3.9)

EBT 5.0 (0.2) (0.2)

2011 Fleet Division P&L

Operating data

Average operating fleet 27,858 15,674 21,590

Cars purchased 13,204 15,341 11,052

Cars sold 7,929 12,742 5,489

Average price of cars purchased 33.9 27.5 28.6

Average price of car sold 28.6 24.3 21.5

Purchase price – sales price 5.3 3.2 7.1

61



$26.3

1 2 3 4 5 20 21 22 23 24

2011-year cycle


Revenue

Localiza - Fleet rental financial cycle

Spread

7,6p.p.

Total

per year

R$ % R$ % R$

Net Revenues 16,3 100,0% 28,6 100,0% 44,9

Costs (4,2) - 0,0% (4,2)

SG&A (0,9) -5,5% (2,3) -8,0% (3,2)



EBITDA 11,2 68,7% 1,4 4,9% 12,6




Tax (3,4) -20,6% 1,4 5,0% (1,9)

NET INCOME 7,8 47,8% (3,4) -11,7% 4,4

NOPAT 5,8

ROIC 16,2%



per operating car per operating car

62



$22.6

1 2 3 4 5 20 21 22 23 24

2011 - year cycle


Revenue

Unidas - Fleet rental financial cycle

Spread

-3,4p.p.

Total

per year

R$ % R$ % R$

Net Revenues 13,0 100,0% 24,3 100,0% 37,3

Costs (2,6) - 0,0% (2,6)

SG&A (2,1) -16,2% (1,7) -7,0% (3,8)



EBITDA 8,3 63,8% (0,5) -2,1% 7,8




Tax (2,5) -19,2% 2,7 11,1% 0,2

NET INCOME 5,7 43,9% (6,3) -25,9% (0,6)

NOPAT 2,2

ROIC 7,4%




63



$19.2

1 2 3 4 5 20 21 22 23 24

2011- year cycle


Revenue

Locamerica Adjusted - Fleet rental financial cycle

Spread

-1,7p.p.

Total

per year

R$ % R$ % R$

Net Revenues 12,6 100,0% 21,5 100,0% 34,1

Costs (3,4) - 0,0% (3,4)

SG&A (1,5) -11,9% (2,3) -10,7% (3,8)



EBITDA 7,7 61,1% 0,0 0,0% 7,7


Depreciation (non-vehicle) * - 0,0% -


Tax (2,3) -18,3% 2,4 11,2% 0,1

NET INCOME 5,4 42,8% (5,6) -26,0% (0,2)

NOPAT 2,5

ROIC 9,3%




64


per operating car


EBITDA 9.0 5.1


EBIT 10.1 (0.2)


EBT 4.5 (5.6)

2011 Car Division P&L

Operating data

Consolidated


Cars purchased 46,746 15,341

Cars sold 42,483 12,742

Average price of cars purchased 28.4 27.5

Average price of car sold 29,2 24.3

Purchase price – sales price (0.8) 3.2

65



$26.4

1 2 3 4 5 20 21 22 23 24

2011 - year cycle


Revenue

Localiza – Car Rental financial cycle

Spread

10,3p.p.

Total

per year

R$ % R$ % R$

Net Revenues 19,1 100,0% 29,2 100,0% 48,3

Cost s (7,4) - 0,0% (7,4)

SG&A (2,7) -14,1% (2,8) -9,6% (5,5)



EBITDA 9,0 47,2% 0,7 2,4% 9,7




Tax (2,7) -14,2% 1,1 3,8% (1,6)

NET INCOME 6,0 31,5% (2,6) -8,9% 3,4

NOPAT 5,2

ROIC 18,9%




66



$22.6

1 2 3 4 5 20 21 22 23 24

2011 - year cycle


Revenue

Unidas – Car Rental financial cycle

Spread

-12,7p.p.

Total

per year

R$ % R$ % R$

Net Revenues 17,8 100,0% 24,3 100,0% 42,1

Costs (5,7) - 0,0% (5,7)

SG&A (7,0) -39,3% (1,7) -7,0% (8,7)



EBITDA 5,1 28,7% (0,5) -2,1% 4,6




Tax (1,5) -8,6% 3,4 13,8% 1,8

NET INCOME 3,5 19,5% (7,8) -32,3% (4,4)

NOPAT (0,6)

ROIC -1,9%


Car Rental Seminovos


67

Localiza consolidated

46,003

53,476

70,295

96,317

62,515

88,060

138,200 127,400 116,300

250,500

291,600

190,200

2006 2007 2008 2009 2010 2011

Fleet

Net income

Fleet and net income evolution

68

23,204

29,790

36,000

30,882

28,005

37,982

-17,377 -17,377

-40,484

-116,847

-64,121

-9,1722006 2007 2008 2009 2010 2011

Unidas consolidated

Fleet

Net income

Fleet and loss evolution

69

Fleet and loss evolution

Fleet

Net income

Locamerica - Adjusted

15,335

21,913

27,262

-8,462

-5,534

-2,643

2009 2010 2011

70

Fleet

2006 2007 2008 2009 2010 2011

Consolidated

Consolidated

71

Rating evolution – Localiza x Competitors

2008 2009 2010 2011 2012

AAA

AA+

AA

AA-

A+

A

A-

BBB+

BBB

BBB-

Rating

National scale

National scale

Source: Itaú/ Bloomberg, as of May, 2012

Localiza S&P

Competitors FITCH

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