Conferencesand Non Deal Roadshow May2008

1

Localiza Rent a Car S.A.

Confins airport branch – Belo Horizonte

24h reservation0800 979 2000

www.localiza.com

May 2008

2

Agenda

1. Integrated business platform page 3

2. Growth opportunities page 7

3. Competitive advantages page 18

4. Financials page 31

3

Integrated business platform

Data-base: 12/31/2007

This integrated business platform gives Localiza superior performance

Synergies:

cost reduction

cross selling

bargaining power

7,602 cars134 agencies in Brazil203 agencies in 9 countries

30,093 cars sold84% sold to final consumer32 points of sale

35,686 cars1.3 million clients178 agencies

17,790 cars456 clients

2,186 employees 177 employees

416 employees25 employees

4

Cor

e B

usin

esse

sSu

ppor

t

Increase market leadership maintaining high return

Create value taking advantage of the integrated business platform synergies

Add value to the brand by expanding the network in Brazil and South America

Strategy by division

Add value to the businesses, reducing depreciation as a competitive advantage

5*Profit (loss) alocated in the rental divisions

Breakdown per division

Revenues EBITDA Profit

Car rental 29% 49% 54%

Fleet rental 15% 39% 45%

Used car sales 55% 11% *

Franchising 1% 1% 1%

Total 100% 100% 100%

Car rental29%

Fleet rental15%

Used car sales55%

Franchising1%

49%

39%

11%

Franchising1%

Car rental63%

Fleet rental36%

Franchising1%

ProfitRevenues EBITDA

6

Agenda





7

Growth opportunities

Air traffic

GDP elasticity

Consolidation

Credit cards

Replacement

Fleet outsourcing

8

Growth opportunities: GDP

Localiza’s average annual revenue growth was 5.9x the average annual GDP.The Brazilian car rental market grew 2.4x the GDP in the same period.

Source: Bacen, Abla and Localiza

Revenues accumulated growth rate – rentals

5.9x

2.4x

Localiza

2004 2005 2006 2007

Sector

GDP

9

Number of travelers has increased 10.2% CAGR

Localiza has strong leadership in airports

Localiza’s airport agencies has been grown in average 2 times faster than the number of passengers deplaned

Growth opportunities: Air traffic

Source: Infraero

Air traffic is an important driver for car rental industry

8396 102 111

2004 2005 2006 2007

Air traffic evolution(Millions of passengers per year)

CAGR: +10.2%

10

93 million credit cards

31 million credit cards holders

36.2% of car rental revenues were paid through credit card in 2007

Source: Abecs

# of credit cards (million)

Growth opportunities: Credit cards

Having a credit card is a requirement to rent a car in Brazil and in USA

5368

7993

2004 2005 2006 2007

CAGR: +20.6%

11

Localiza is very well positioned to capture this growth due to its geographic footprint

Growth opportunities: Replacement market

Source: Fenaseg and Denatran

Replacement is a growing market in Brazil

Brazil has 9.2 million insured cars

The accident rate is 16.5% / year

The potential market is 10.6 million of daily rentals (2.5 x thecar rental division in 2006)

12

Growth opportunities: Fleet outsourcing

Focus of corporations on their core businesses Focus of corporations on their core businesses

Fixed asset reduction by companies (increase their asset turnover)Fixed asset reduction by companies (increase their asset turnover)

Renting a fleet can be more economic than owning itRenting a fleet can be more economic than owning it

Large potential market with low penetration due to lack of culture Large potential market with low penetration due to lack of culture

Approximately 25% of the corporate fleet (500,000e cars) is rented

13Source: Auto Rental News

Revenues Number of agencies

USA: 4 companies hold 96% of market share (Auto Rental News)

US Market share 2007US$ 21.54 B

Growth opportunities: Consolidation

Enterprise40,5%

Hertz17,0%

Others26,6%

DTG3,6%

Avis Budget12,2%

Enterprise47,6%

Hertz18,8%

Avis Budget22,4%

DTG7,5%

Others3,7%

14

Growth opportunities: Consolidation

The main car rental networks are concentrated in airport market Off-airport market is fragmented among almost 2,000 small local car rental companies

Brazil Market 2007 (# of agencies)

Airport segment agencies Off-airport segment

agencies

Source: *Localiza as of 03/31/2008; **Each company website, 05/15/2008; *** Assuming that each local player has one agency

Localiza*83

Hertz**31

Unidas**30

Avis**33

Others***29

1901

Localiza*232

Hertz**64

Avis**49

Unidas**53

15

54% 59% 62% 64%

46% 41% 38% 36%

2005 2006 2007 1Q08

Off-airports Airports

100% 100% 100% 100%

Car rental revenues breakdown

Car rental division

2006 2007 1Q08

Airports 16.0% 13.8% 19.4%

Off-airport 46.7% 27.8% 41.3%

The geographical expansion strategy has reduced the share of airport market in car rental revenues

Car rental revenues growth

Growth opportunities: airport x off-airport markets

16Source: ABLA and Company, based on revenues

Consolidated Localiza’s market share

2004 2005 2006

Car rental market share

Feet rental market share

Localiza is increasing its market share

2007

22.4%

10.2%

15.5%

25.8% 29.4% 33.0%

11.4% 13.0% 13.2%

17.9% 20.5% 22.1%

17

Agenda





18

Pricingstrategy

Highercompetitiveness

Market shareincrease

Gains of scale

Integrated platformGeographical distribution

Lower interest rateKnow-how

Strong brandState of the art IT

Lower depreciationCar resale inventory as a buffer

Competitive advantages

19

International footprint

International footprint

Strategic locationsStrategic locations

Nationwidepresence

Nationwidepresence

Competitive Advantages: Largest distribution

387 agencies in 9 countries

20

223

62

59

52

Localiza Hertz Unidas Avis

315

95

83

82

Localiza Hertz Unidas Avis

Competitive Advantages: Largest distribution

Localiza network is larger than the second, the third and the fourth competitors combined in number of agencies and cities.

Agencies in Brazil Cities in Brazil

Source: Each company website as of May 15, 2008

260315

173

223

21

Curitiba - PR

22

Natal - RN

23

Belo Horizonte - MG

24

Competitive advantages: Rating

Enterprise Localiza Avis Budget Hertz Europcar DollarThrifty

Vanguard

Localiza has one the best rating among its international peers

Moody’s debt rating as of August, 2007 (Global scale)Baa2

Ba1Ba2

Ba3 Ba3

B1 B1

Standard & Poors’ corporate rating as of May, 2007 (Local Currency) Localiza Rent a Car S.A. brAA-/ Stable /--

CPFL Energia S.A brAA-/ Stable /--

Unibanco Asset Management brAA+/ Positive /brA-1

Gerdau S.A. brAAA/ Negative /--

Klabin S.A. brAA-/ Stable /--

Banco Citibank S.A. brAA+/ Positive /brA-1

Banco Votorantim S.A. brAA+/ Stable /brA-1

25

Competitive advantages: Car resale inventory as a buffer

32 stores in Brazil

1 6 1 1 1 6 2 1 2 6 3 1 5 1 0 1 5 2 0 2 5 2 7 1 2 1 7 2 2 2 7 1 6 1 1 1 6 2 1 2 6 1 6 1 1 1 6 2 1 2 6 3 1 5 1 0 1 5 2 0 2 5 3 0 5 1 0 1 5 2 0 2 5 3 0 4 9 1 4 1 9 2 4 2 9 3 8 1 3 1 8 2 3 2 8 3 8 1 3 1 8 2 3 2 8 2 7 1 2 1 7 2 2 2 7 2 7 1 2 1 7 2 2 2 7

Buffer

Buffer Buffer

Buffer

Jan Feb Marc Apr Mai Jun Jul Aug Sep Oct Nov Dec

Rented cars

Car resale inventory is used as a buffer during peaks of demand

26

Campinas - SP

27

Goiânia - GO

28

Rio de Janeiro / Barra - RJ

29

22,18026,100

33,52038,050

2004 2005 2006 2007

Localiza has better conditions due to its large scale

In 2007 Localiza purchased more than R$1.2 billion in cars

Localiza and its Franchisees represented in 2007

3.2% of GM internal car sales

1.8% of FIAT internal car sales

1.6% of the Brazilian internal car sales

Competitive Advantages: Strong ties with the automakers

Purchased cars

30

Agenda





31

Growth with profitability

134 154 150 152198

278311

403

856242

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

331 429 555 679191 251 303448

590853

127 145 160 221 270 286 281151898586 90

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

CAGR: 27.6%

CAGR: 23.9%

EBITDA evolution

Revenue evolution

CAGR: 16.5%CAGR: 30.3%

Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007GDP % 3.4 0.0 0.3 4.3 1.3 2.7 1.1 5.7 2.9 3.7 5.4Average 1.9 4.4

32

Rental volume evolution

537.7761.0

1,085.21,317.4

1,820.9

1Q04 1Q05 1Q06 1Q07 1Q08

8,345 8,477

11,17413,325

15,720

1Q04 1Q05 1Q06 1Q07 1Q08

CAGR: +35.7%CAGR: +17.2%

Fleet rental – average rented fleet(quantity)

Car rental – daily rentals(quantity thousands)

18.0%

38.2%

33

53.545.4

1Q07 1Q08

120.998.1

1Q07 1Q08

159.4 201.6

244.2268.9

1Q07 1Q08

14,697 20,097

13,325

15,720

1Q07 1Q08

1Q08 highlights

Net revenue

403.6470.5

R$

mill

ion

Average rented fleet

28,02235,817

Qua

ntty

EBITDA Net income

36.7%

18.0%

27.8% 16.6%

10.1%

26.5%

23.2% 17.8%R

$ m

illio

n

R$

mill

ion

Car rental Fleet rental Rental and Franchising Used car sales

34

EBITDA margin per division

Divisions 2004 2005 2006 2007

Rental divisions, including Used car sales 2004 2005 2006 2007 1Q07 1Q08

Car Rental and Franchising + Seminovos/ car rental revenue 54.6% 63.5% 47.6% 53.7% 58.5% 57.3%

Fleet Rental + Seminovos/ fleet rental revenue 67.6% 67.4% 72.3% 70.9% 67.7% 66.1%

41.9%

69.1%

4.6%

1Q081Q07

44.5% 46.6%

65.4%

5.7%

68.7%

5.4%

Car Rental and Franchising 39.3% 45.0% 44.8%

Fleet Rental 63.4% 62.3% 62.0%

Used car sales – Seminovos 12.0% 13.2% 7.4%

1Q08 EBITDA breakdown

Fleet rental31.6%

Seminovos16.5%

Car rental e Franchising

51.9%

35

19,531 24,103 31,373 35,68623,825

32,6359,168

11,76214,630

17,790

14,938

18,604

2004 2005 2006 2007 1Q07 1Q08

Car rental Fleet rental

22,18226,105

33,52038,050

1,7477,213

15,71518,763

23,17430,093

8,870 9,292

2004 2005 2006 2007 1Q07 1Q08

493.1690.0

930.31,060.9

64.0224.6303.0

448.2590.3

853.2

244.2 268.9

2004 2005 2006 2007 1Q07 1Q08

Investment in fleet

* Includes accessoriesPurchased Sold

7,342

10,346

6,467

7,957

241.8340.0

190.1

207.7

Quantity Net investment *(R$ million)

CAGR: +23.1%

End of period fleet **

32.2%

(180.2)(44.3)

(7,123)(2,079)

28,69935,965

46,00353,476

38,763

51,239

28.3% 24.4%21.6%

24.5%

23.4% 30.2% 13.7% 37.0%

** Deductions for losses from theft and accidents are deducted from the fleet at end of period.

36

Net debt x fleet value

281.3539.3 443.1

767.9 838.6900.2

1,247.71,492.9 1,465.1

612.2

2004 2005 2006 2007 1Q08

Net debt Fleet value

END OF PERIOD BALANCE 2004 2005 2006 2007 1Q08

Net debt / fleet 46% 60% 36% 51% 57%

Net debt / EBITDA (USGAAP) 1.4x 1.9x 1.4x 1.9x 1.7x*

Net debt / EBITDA (BRGAAP) 1.1x 1.5x 1.0x 1.4x 1.2x*

Net debt / market cap 35% 30% 10% 20% 25%

* Annualized

37

Free cash flow before growth

30.1 32.7

340.2

-8.8

199.7

1.2p.p.0.6p.p.0.9p.p.3.7p.p.

9.8p.p.

-5 0

5 0

1 5 0

2 5 0

3 5 0

4 5 0

2004 2005 2006 2007 1Q08 -2 %

3 %

8 %

1 3 %

Free cash flow before growth Real increase in new car prices

Free cash flow - FCF

(89.3)

The negative FCF of R$ 8.8 million was impacted by the reduction of R$ 89.3 million in vehicle supplier account, compensated by the reduction of R$ 44.3 million in car-capex, what would result in a FCF of R$ 36.2 million

222.0(1)

118.2

Variation on vehicle supplier account (21.9) (25.5) 222.0 (51.0)

Free cash flow 2004 2005 2006 2007268.6 340.1

(37.7)

302.4(839.0)

760.0(79.0)

(23.7)

199.7(221.9)

(22.2)

217.2

485.8(643.3)

530.4(112.9)

(32.7)

340.2(287.0)

53.2

EBITDA after taxes 156.6 245.2

Working capital variation ‐ (increase) decrease (15.7) (49.7)

Cash provided before capex 140.9 195.5Capex of vehicle ‐ renovation (349.3) (496.0)

Cost of used car sales 248.7 361.2Net capex – for renovation (100.6) (134.8)

Capex – Property and equipment, net (10.2) (28.0)

Free cash flow before growth 30.1 32.7

Capex of vehicle – growth (143.8) (194.0)

Free cash flow (113.7) (161.3)

1Q08

100.6

(117.7)

(17.1)(224.6)

236.311.7

(3.4)

(8.8)‐

(8.8)

(1) Impact on cash flow due to the extraordinary increase in the vehicle supplier caption.

38

EVA

2004 2005 2006 2007

ROIC 24.6% 24.8% 18.7% 21.3%

11.2%

8.4%

11.5%

10.1

1,137,460

114,334

38,133

Nominal WACC 16.9% 15.7% 11.0%

Cost of debt (2) 11.6% 13.6% 10.9%

Cost of equity 20.0% 16.2% 11.0%

Spread (ROIC‐WACC) – p.p. 7.7 9.1 7.7

Capital investment – R$ thousand (1) 507,362 606,327 986,232

EVA – R$ thousand 39,198 55,530 76,201

EVA increase calculation – R$ thousand 16,332 20,671

25.935.4

114.3

55.576.2

39.25.2%

21.3%

24.6% 24.8%18.7%

5.6%2.7%2.8%

11.2%11.0%15.7%

16.9%

4 0

8 0

1 2 0

2004 2005 2006 2007 1Q07 1Q08

0 %

1 0 %

2 0 %

3 0 %

EVA ROIC Nominal WACC

(1) For EVA® calculus, it was used the average capital of the period. (2) Cost of debt after taxes

1Q07 1Q08 Variation

5.2%

2.8%.

8.8%

11.6%

2.4

1,095,637

25,862

0.4p.p.5.6%

2.7%

8.2%

11.2%

2.9

1,246,730

‐0.1p.p.

‐0.6p.p.

‐0.4p.p.

0.5

151,093

35,362 9,500

13.8%

39

RENT3 X IBOVESPA

0

5

10

15

20

25

23-M

ay

5-Jul

16-A

ug28

-Sep

11-N

ov26

-Dec

8-Feb

24-M

ar10

-May

22-Ju

n3-A

ug15

-Sep

30-O

ct14

-Dec

31-Ja

n16

-Mar

30-A

pr13

-Jun

26-Ju

l6-S

ep22

-Oct

6-Dec

23-Ja

n10

-Mar

23-A

pr

Pric

e

0

20

40

60

80

100

120

Volume

Volume RENT3 RENT3 IBOVESPA

RENT3: Performance

Performance RENT3 IBOV

2005 +149% +38%

2006 +124% +33%

2007 -12% +44%

2008 11% 9%

Since IPO +448% +186%

From IPO until 05/02/2008

Localiza was included in the MSCI Brazil Index beginning on March, 2008.

Average daily trade volume (R$ million)

4.57

10.5813.54

10.26

2005 2006 2007 1Q08

+196%

448%

186%

40

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.

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.

Disclaimer

Business

Conferencesand Non Deal Roadshow May2008