1

Localiza’s flexible business model

proved to be effective during the crisis period.

Localiza Rent a Car S.A.4Q09 and 2009 Results - R$ million, USGAAP

March, 2010

2

Integrated business platform

This integrated business platform gives Localiza flexibility and superior performance

Synergies:

cost reduction

cross selling

bargaining power

� 8,791 cars� 238 locations in 9 countries

167 locations in Brazil 71 locations in South America

� 23 employees

� 34,519 cars sold� 78% sold to final consumer

� 49 stores� 588 employees

� 47,517 cars

�1.9 million clients�214 locations�2,768 employees

� 22,778 cars� 584 clients� 225 employees

As of 12/31/2009

3

Car rental financial cycle

$29.7Funding (FV)

Funding (PV)$26.6

Net car sale revenue$27.5

$26.6Car acquisition

1 2 3 4 5 8 9 10 11 12Expenses: (10.3)

1-year cycle

Revenue: 18.5

Total1 year

R$ % R$ % R$Revenues 19.0 100.0% 29.2 100.0% 48.2 Additional revenue 0.6 2.1% 0.6 Cost (8.0) -42.1% (8.0) SG&A (2.8) -14.7% (2.3) -7.8% (5.1)

Net car sale revenue 27.5 94.3% 27.5

Book value of car sale (27.0) -92.5% (27.0) EBITDA 8.2 43.2% 0.5 1.8% 8.7

Depreciation (non-vehicle) (0.3) -1.6% (0.2) -0.6% (0.5) Depreciation (vehicle) (1.6) -5.5% (1.6) Interest on debt (1.9) -6.3% (1.9) Tax (2.4) -12.5% 0.9 3.2% (1.4)

NET INCOME 5.5 29.1% (2.2) -7.4% 3.4

Return on asset 12.6%

Car rental Used car salesPer operational car Per operational car

4

33.8Car acquisition

42.0Funding (FV)

Funding (PV)33.8

Net car sale revenue 28.8

1 2 3 4 5 20 21 22 23 24

2-year cycle

Expenses: (10.5)

Revenue: 32.4

Fleet rental financial cycle

2 years 1 yearR$ % R$ % R$ R$

Revenues 32.4 100.0% 29.6 100.0% 62.0 31.0

Additional revenue 0.5 1.8% 0.5 0.3

Cost (8.7) -26.7% (8.7) (4.3) SG&A (1.8) -5.6% (1.4) -4.6% (3.2) (1.6) Net car sale revenue 28.8 97.2% 28.8 14.4 Book value of car sale (27.9) -94.2% (27.9) (13.9)

EBITDA 21.9 67.6% 0.9 3.0% 22.8 11.4 Depreciation (non-vehicle) (0.4) -1.2% (0.7) -2.3% (1.1) (0.5) Depreciation (vehicle) (6.5) -22.0% (6.5) (3.3) Interest on debt (4.9) -16.6% (4.9) (2.5) Tax (6.5) -19.9% 3.4 11.4% (3.1) (1.5)

NET INCOME 15.1 46.5% (7.8) -26.5% 7.2 3.6

Return on asset 10.7%

TotalFleet rental Used car salesPer operational car Per operational car

5

Co

re B

usin

esses

Su

pp

ort

� Increase market leadership maintaining high return

�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

Strategy by division

�Add value to the businesses, optimizing fleet renewal and reducing depreciation as a competitive advantage

6

Growth opportunities

Air traffic9.1% CAGR (2004/2009)

Growth forecast between 2% - 5%

GDP elasticityRental divisions 5.9x GDP

Sector: 2.6x GDP

ConsolidationUS market: 4 players 95% BR market: 4 players 40%

1,893 players 60%

Credit cards20.8% CAGR (2004/2009)

45 mm holders (estimated)13% growth for 2010

Insurancereplacement

Around 10 million cars insuredAccident frequency of 15% p.a.

Fleet outsourcingCorporate target fleet of 500,000 cars

Approximately 25% rented

Source: Localiza, ABLA and Central Bank

Source: Infraero, Gol and Tam

Source: Abecs and estimates

Source: Susep, Denatran and estimates

Source: Company estimates

Source: Auto Rental News and estimates

7

Localiza’s revenues have been growing 5.9x GDP.

Source: Central Bank, Localiza and ABLA

Growth opportunities: GDP

5.9x

Localiza

GDP

Sector 2.6x

2005 2006 2007 2008

GDP (real) Localiza (real) Sector (real)

Rental revenues accumulated growth rate – rentals

8

Others*1889

Localiza292 Unidas

73 Avis44

Hertz65

Growth opportunities: consolidation

Airport locations Off-airport locations

Brazilian car rental agencies

Off-airport market is fragmented among almost 2,000 small local car rental companies

*Source: ABLA, 2008Source: Each company website as of December 31th , 2009

Unidas29

Avis30

Hertz29

Others36

Localiza89

9

22.4%25.8%

29.4%33.0%

38.0%

2004 2005 2006 2007 2008

Consistent market share evolution

38.0%

Strategy: increase market leadership maintaining high return

Source: ABLA, based on revenues

10

Consistent market share evolution

14.0%

Strategy: create value taking advantage of the integrated business platform synergies

Source: ABLA, based on revenues

10.2%11.4%

13.0% 13.2% 14.0%

2004 2005 2006 2007 2008

11

Highercompetitiveness

Market shareincrease

Gains of scale

ScaleKnow-how

Strong brandStrong values

Integrated platformGeographical footprint

High corporate governance standardsUsed car sales network

Management model Lower depreciation Stable Management

Owners involvedFacilities

Rating

Competitive advantages

Localiza reached the virtuous cycle

12

36 years of experience…

Raising money

Buyingcars

Renting cars

Selling cars

Competitive advantages

…give Localiza superior performance in all chains of the renting process

13

Competitive advantages: funding

Raising money

Buyingcars

Renting cars

Selling cars

Aa2.brDuke Energy

Aa2.brCEMIG

Aa2.brCyrela Brazil Realty

Aa2.brBraskem S.A.

Aa2.brLocaliza Rent a Car S.A

Moody’s corporate rating as of Mar/10 (Local Currency)

brATam

brAA-Duke Energy

brAACEMIG

brA+Cyrela Brazil Realty

brAA+Braskem S.A

brAA-Localiza Rent a Car S.A

Standard & Poors as of Mar/10 (Local Currency)

Rating

High corporate governance standards

14

Competitive advantages: scale in buying cars

Raising money

Buyingcars

Renting cars

Selling cars

As the largest buyer in Brazil, Localiza gets better prices and conditions with the automakers

* Includes Localiza, Total Fleet and Franchisees purchases.

Localiza2.3%

Purchases from Fiat, GM, VW and Renault in Brazil*

GM44%

FIAT33%

VW16%

Others1%

RENAULT6%

Purchased cars by brand

15

Competitive advantages: scale renting cars

Raising money

Buyingcars

Renting cars

Selling cars

34th

Most valuable brand in Brazil

(Brand Analytics, May 2009)

Best of transportation sector(Exame, Biggest & Best, July 2009)

Strong brandGeographical

footprint

Locations in Brazil

Scale

102

94

74

Localiza Unidas Hertz Avis

381

270

Localiza’s market share: 38%

16

Car rental network

Localiza has the best located branches in Brazil and South America

17

Car rental network

18

Competitive advantages: selling cars

Raising money

Buyingcars

Renting cars

Selling cars

49 stores in Brazil

� Logistics of distribution

� Know-how of used car market

� Selling to final consumers in order to have higher revenue per sold car

2009 Seminovos’ share

� 0.3% of total car sale market 10,080,267 cars

� 0.5% of used car sale market 7,071,525 cars

� 1.1% of new car sale market 3,008,742 cars

� 5.0% of up to 3-year old car market 688,059 cars

Localiza’s share Total market

Advantages

19

Used car sales network

Localiza has a different brand and a special network to sell its cars to final consumers

20

Funding

Equity

Debt

Ass

ets

(car

s)

Profitability comes fromrental divisions

Cash to renew the fleet

Pricing strategy• Operating costs• Depreciation• Financial expenses• Taxes• Profitability

Managing assets

Flexible and liquid assets.

21

Liquid and flexible assets allow for fast adjustment

Scenario during crisis from Oct/08 to Jun/09

Impact on car and fleet rental volumesDrop in the GDP from positive to negative

Money available at shorter terms and higher spreadsCredit restriction and increasing spreads

Loss in the fleet value and increase in depreciation ratesIncentive: IPI reduction for new cars

Drop in used car sales volumesDrop in the cars sales volumes

LocalizaBrazil

� Resume fleet renewal

� Debt profile extension

� Increase in used car sales investments

2H09

GDP: 1,5%

� Fleet adjustment: Localiza stop buying cars

� Strong cash generation� Pre-payment of short term debt

1H09

GDP: -1,9%

Localiza’s adjustment

22

Financials

23

Consolidated results

Resumption of growth in net revenues and net income in 4Q09.

(R$11.1)116.3127.4Net income

-6.3%6.9%Net margin

-6.8%469.7504.1EBITDA

0.0%1,856.31,855.7Net revenue

Var.20092008

R$68.238.4(29.8)Net income (loss)

-7.0%-7.1%Net margin

+2.5%128.9125.8EBITDA

+30.4%551.1422.5Net revenue

Var.4Q094Q08

24

Car rental division

167.0155.2

607.8585.7

442.7357.2

271.3

2005 2006 2007 2008 2009 4Q08 4Q09

Net revenues (R$ millions)

CAGR: 29.2% 3.8%

Revenues and daily rentals have grown in 4Q09.

7.6%

3,4114,668

5,793

7,940 8,062

2,085 2,236

2005 2006 2007 2008 2009 4Q08 4Q09

CAGR: 32.5% 1.5%

7.2%

# daily rentals (thousand)

25

Car rental division

jan feb mar apr may jun jul aug sep oct nov dec

2005 2006 2007 2008 2009

- 3.3% 9.1% 16.3%17.5%

# daily rentals

Localiza is back to high growth.

726 658 701702 719815

oct nov dec

2008 2009

711

835

jan

2009 2010

26

Car rental division

Net revenue breakdown – car rental

54% 59% 62% 66% 68%

46% 41% 38% 34% 32%

2005 2006 2007 2008 2009

Off airport Airport

100% 100% 100% 100% 100%

Localiza is already present in all airports and therefore it has been concentrating its geographical expansion in new markets.

27

117145

178 199 214

2005 2006 2007 2008 2009

# of locations

+ 28+ 33 + 21

+15

It doesn’t include franchisees

Car rental division

Even during the crisis period Localiza has expanded its network distribution.

28

Car rental division

67.9% 68.8% 68.6%67.6%

64.5%

76.2% 15.3

2.4

16.1

5 8 .0 %

6 0 .0 %

6 2 .0 %

6 4 .0 %

6 6 .0 %

6 8 .0 %

7 0 .0 %

7 2 .0 %

7 4 .0 %

7 6 .0 %

7 8 .0 %

2008 2009 1Q09 2Q09 3Q09 4Q09

-

2 .0

4 .0

6 .0

8 .0

1 0 .0

1 2 .0

1 4 .0

1 6 .0

1 8 .0

Utilization rate – car rental

Trade-off: lower depreciation despite its effect in a lower utilization rate.

Utilization rate # of purchased cars (thousand)

29

Fleet rental division

# of daily rentals (thousand)

149.2190.2

228.2276.9 313.4

76.1 82.5

2005 2006 2007 2008 2009 4Q08 4Q09

CAGR: 22.9%

Net revenue (R$ millions)

8.4%

13.2%

Fleet rental division has kept a consistent growth even in a crisis scenario.

3,3514,188

5,1446,437 7,099

1,826 1,850

2005 2006 2007 2008 2009 4Q08 4Q09

CAGR: 24.3% 10.3%

1.3%

30

Used car sales division

The used car sales division has presented strong growth since 4Q09.

18,76323,174

30,09334,281 34,519

6,64611,335

2005 2006 2007 2008 2009 4Q08 4Q09

CAGR: 22.3%

70.6%

0.7%

# of sold cars

2,102 2,115 2,4293,574 3,342

4,419

oct nov dec

2008 2009

70.0%

58.0% 81.9%

2,5213,577

jan

2009 2010

41.9%

31

1326

32 3549

2005 2006 2007 2008 2009

# of stores

+ 13+ 6

+ 3

In 2009, the used car sales division expanded its network.

40.0%

Used car sales division

+14

32

Average operating fleet age – car rental(in months)

The average operating fleet age is coming back to pre-crisis level.

6.0 6.4 5.7 7.09.4

11.69.6

7.3

1Q 2Q 3Q 4Q

2008 2009

Average operating fleet age

12.6 12.6 11.6 12.715.4 16.7 16.3 17.5

1Q 2Q 3Q 4Q

2008 2009

Average sold fleet age

33

Depreciation per car – car rental division

332.9

2,546.0 2,577.0

939.1492.3

2005 2006 2007 2008 2009

Average depreciation per car (R$) - year

With 2/3 of fleet renewed, average depreciation per car has already presented a significant drop.

Average depreciation per car (R$) - quarter

418.8

7,379.3

1,798.62,599.7

3,763.3

2,209.21,133.4729.7

1Q 2Q 3Q 4Q

2008 2009

34

Depreciation per car – fleet rental division

2,981.32,383.3

4,371.75,083.1

2,395.8

2005 2006 2007 2008 2009

The average depreciation per car has also presented a significant reduction in the fleet rental division.

Average depreciation per car (R$) - quarter

Average depreciation per car (R$) - year

2,048.0

11,572.0

3,064.54,557.6

6,238.63,652.02,894.3 2,670.1

1Q 2Q 3Q 4Q

2008 2009

35

Net revenues

1,856.31,855.7

1,531.7

1,145.4876.9

634.4532.0476.9234.3212.9 244.7 310.1 420.4

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

Consolidated net revenues(R$ million)

CAGR: 16.5%

CAGR: 30.8%

4.4

5.7 2.9 3.7 4.6 5.1

-0.2

-0.2

1.9Average

1.12.71.34.30.30.03.4GDP

From 2004 to 2008 Localiza’s revenues have grown 7x GDP.

36

277.9 311.3403.5

504.1 469.7

125.8 128.9

2005 2006 2007 2008 2009 4Q08 4Q09

EBITDA margin

5.5%

51.5%

67.0%

44.3%

2008

50.6%52.5%49.3%52.6%51.2%51.0%Rentals consolidated

0.4%

65.9%

43.0%

4Q09

1.6%

68.9%

44.4%

4Q08

1.1%

66.5%

40.3%

2009

4.6%

69.1%

42.0%

2006

5.4%

68.7%

44.5%

2007

13.2%Used car sales

62.3%Fleet rental

45.3%Car rental

2005Divisions

EBITDA consolidated (R$ millions)

CAGR: 22.0%

EBITDA margins are still consistent.

- 6.8%

2.5%

37

Net income

38.4-29.8

106.5138.2

190.2

127.4 116.3

2005 2006 2007 2008 2009 4Q08 4Q09

- 228.9%

Net income (R$ millions)

Main impact in results: decrease of used car sales EBITDA.

- 8.7%

127.4

(46.6)

(133.3)

(18.3)

(178.5)

504.1

54.5

449.6

2008

116.3

(47.2)

(112.9)

(21.0)

(172.3)

469.7

10.6

459.1

2009

(11.1)

(0.6)

20.4

(2.7)

6.2

(34.4)

(43.9)

9.5

Var. R$

3.1128.9125.8EBITDA Consolidated

68.2

(39.9)

20.0

(0.1)

85.1

(1.9)

5.0

Var. R$

38.4(29.8)Net income

(20.7)19.2Income tax and social contribution

(24.5)(44.5)Financial expenses, net

(5.1)(5.0)Other depreciation

(40.2)(125.3)Depreciation of revenue-earning vehicles

1.23.1EBITDA - Used car sales

127.7122.7EBITDA - Car rental and fleet rental

4Q094Q08Reconciliation of EBITDA x Net Income

38

Free cash flow - FCF

8,6429,9307,95710,3467,342Fleet increase (quantity)

15.2----Change in amounts payable to car suppliers (capex)

295.4

241.1

(241.1)

295.4

(21.0)

(23.4)

(963.1)

924.5

339.8

(11.5)

(49.0)

400.3

855.1

(924.5)

469.7

2009

(283.1)

(188.9)

(299.9)

205.7

(39.9)

(52.2)

(1,035.4)

983.2

297.8

(44.8)

(52.8)

395.4

874.5

(983.2)

504.1

2008

(22.2)53.2 (161.3)Free cash flow

(51.0)222.0 (25.5)Change in amounts payable to car suppliers (capex)

(221.9)(287.0)(194.0)Capex of car – growth

250.7 118.2 58.2 Free cash flow before growth

(23.7)(32.7)(28.0)Capex - Property and equipment, net

14.2 (53.0)(47.8)Net capex for renewal

(839.0)(643.3)(496.0)Capex of car – renewal

853.2 590.3 448.2 Used car sales revenues

260.2 203.9 134.0 Cash provided before capex

13.3 (4.8)(24.2)Working capital variation

(63.4)(42.7)(32.7)(-) Income tax and social contribution – current

310.3 251.4 190.9 EBITDA without used car sales revenues and costs

760.0 530.4 361.2 Cost of used car sales

(853.2)(590.3)(448.2)Used car sales revenues

403.5 311.3 277.9 EBITDA

200720062005Free cash flow - R$ millions

39

Net debt

Net debt was reduced by R$175.9 million.

-39.4 -80.1

295.4

-1,254.5-1,078.6

Interest and others

Dividends

Net debt12/31/2008

Net debt12/31/2009

Free cash flow

40

Debt – profile and costsDebt (principal) on 12/31/09 – R$ millions

2009

423.1

205.4 225.0 239.6 211.8160.0

459.6Cash

2010 2011 2012 2013 2014 2015

Stand by*

Debt profile was extended.

(459.6)-----(459.6)Cash and cash equivalents

1,005.3 160.0 211.8 239.6 225.0 205.4 (36.5)-Total net debt - principal

1,464.9 160.0 211.8 239.6 225.0 205.4 423.1 -Total gross debt - principal

2.2 ---0.4 0.9 0.9 TJLP + 3.80%paBNDES

400.0 100.0 100.0 100.0 100.0 --CDI +2.02%paDebentures - 1st Issuance, Total Fleet

200.0 -----200.0 108.9% of CDICommercial Papers

200.0 -66.8 66.6 66.6 --CDI + 0.59%paDebentures - 2nd Issuance

222.2 -----222.2 110.8% of CDIDebentures - 1st Issuance

440.5 60.0 45.0 73.0 58.0 204.5 -CDI + 1.25%paWorking Capital

Total201520142013201220112010Average effective

costGross debt - principal

*Stand by refers to R$100 MM limit with BNDES, with term of drawing until sept/2010

41

Debt - ratios

Significant improvement in debt ratios.

535.8 440.4765.1

1,254.51,078.6

900.21,247.7

1,492.91,752.6 1,907.8

2005 2006 2007 2008 2009

(R$ millions)

Net debt Fleet value

2.0x

1.8x

2.5x

72%

2008

1.5x1.3x0.7x1.4xNet debt / Equity (USGAAP)

1.7x1.3x1.0x1.5xNet debt / EBITDA (BRGAAP)

2.3x1.9x1.4x1.9xNet debt / EBITDA (USGAAP)

57%51%36%60%Net debt / Fleet value (USGAAP)

2009200720062005BALANCE AT THE END OF THE PERIOD

42

Rewards and recognitions

Corporate governance:

� Elected twice The Best Company In Corporate Governance (Capital Aberto Magazine)

� Elected “The Most Shareholder-friendly” company (Institutional Investor Magazine)

Corporate reputation:

� Elected twice The Best CEO of a small-cap (Institutional Investor Magazine)

� Best of Transportation Sector (Exame Magazine)

� One of The 100 Companies with Best Reputation in the Country (Consumidor Moderno Magazine)

Internationalization:

� 28th Most Internationalized Brazilian Company (Ranking Fundação Dom Cabral)

Franchising:

� Franchisor of the Year (Brazilian Franchising Association)

� Best Franchising of Brazil (Pequenas Empresas, Grandes Negócios Magazine)

Human resources:

� One of The 50 Most Admired RHs (Gestão & RH Magazine)

RENT3:

� 34th Most Valuable Brand in Brazil (IstoÉ Dinheiro Magazine)

� 2nd Highest Profitability since the IPO (Ranking elaborated by Valor Newspaper)

43

RENT3 performance

Average daily volume (R$ millions) Average daily volume (# shares)

Strong growth of traded volumes.

648.7

824.2

2008 2009

8.4

11.9

2008 2009

41.7%27.1%

44

Referrals

� TOP PICK from Itaú for March

� Weekly portfolio from SLW broker

� Citi – “Still Our Favorite Brazilian Transportation Name”

� Goldman Sachs – BRIC’s EM Nifty 50

� Santander – Shifting Into High Gear

� BNP Paribas – Porfolio for March

� Link Broker – Porfolio for March

� Valor Econômico – Portfolio for March

RENT3 is well recommended.

45

Indexes

� MSCI Brazil Index

� Van Eck ETF - Market Vectors Brazil Small-Cap Index

� Goldman Sachs GSSTEM50 – BRIC’s EM Nifty 50

� IBrX 100

� ITAG

� IGC

RENT3 is present in various indexes.

46

Thank you!