1

Localiza Rent a Car S.A.1Q10 Results - R$ millions, USGAAP

May, 2010

Goldman Sachs: “The BRICs Nifty 50: The EM and DM winners”, November, 2009

2

Localiza started its business in 1973…

…with 6 used beetles, 100% financed.

3

Timeline: growth by adjacencies

IPO

79.858 cars9 countries

449 locations

79.858 cars9 countries

449 locations

19991973 1984 1990 1997 200720062005 2008 2009

Private Equity

DLJ

US$ 100MM Bonds

R$ 350MM Debenture1st Localiza

Follow onR$ 200MM Debenture2nd Localiza

R$ 300MM Debenture3rd Localiza

R$ 400MM Debenture1st Total Fleet

1Q10

R$ 370MM Debenture4th Localiza

4

Ownership breakdown

* Includes 4.226.300 shares in Treasury

100%100%100%

EugenioMattar

AntonioClaudio Resende

FlavioResende Free-Float *

13.1% 8.6% 12.0% 8.6% 57.7%

SalimMattar

Founders

5

Company’s structure

BOARD OF DIRECTORS

CEO

COO

Car Acquisition

Legal

Financial ITHuman Resources Administration

Localiza has a very lean and efficient structure

The supporting areas assist all four businesses’ divisions.

Salim Mattar

Eugenio Mattar

The succession process is already planned.

6

Integrated business platform

This integrated business platform gives Localiza flexibility and superior performance

Synergies:bargaining powercost reductioncross selling

Revenue: 32.7%EBITDA: 52.2%Net income: 57.8%

Revenue: 16.9%EBITDA: 44.4%Net income.: 38.8%

Revenue: 0.6%EBITDA: 1.2%Net income: 3.4%

Revenue: 49.8%EBITDA: 2.3%Net income: -

9,250 cars166 locations in Brazil70 locations in South America26 employees

Capacity to sell 50,000 cars/yearAround 80% sold to final consumer48 stores617 employees

48,323 cars2.0 million clients213 locations2.844 employees

22,285 cars599 clients232 employees

7

Strategy by divisionC

ore

Bus

ines

ses

Supp

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

Add value to the businesses optimizing fleet renewal and reducing depreciation

8

Total1 year

R$ % R$ % R$Revenues 19.0 100.0% 27.6 100.0% 46.6 Cost (8.0) -42.1% (8.0) SG&A (2.8) -14.7% (2.0) -7.3% (4.8) Net car sale revenue 25.6 92.7% 25.6 Book value of car sale (25.1) -91.0% (25.1)

EBITDA 8.2 43.2% 0.5 1.7% 8.7 Depreciation (vehicle) (1.6) -5.8% (1.6) Depreciation (non-vehicle) (0.3) -1.6% (0.3) Interest on debt (1.9) -6.7% (1.9) Tax (2.4) -12.5% 0.9 3.3% (1.5)

NET INCOME 5.5 29.1% (2.1) -7.6% 3.4 ROIC 17.8%

Car rental Used car salesPer operational car Per operational car

Financial cycle – Car rental

$29.7Funding (FV)

Funding (PV)$26.6

Net car sale revenue$25.6

$26.6Car acquisition

1 2 3 4 5 8 9 10 11 12Expenses: (10.8)

1-year cycle

Revenue: 19.0

9

Total2 years

R$ % R$ % R$Revenues 32.4 100.0% 30.7 100.0% 63.1 Cost (8.7) -26.7% (8.7) SG&A (1.8) -5.6% (2.1) -7.0% (4.0) Net car sale revenue 28.5 93.0% 28.5 Book value of car sale (28.0) -91.3% (28.0)

EBITDA 21.9 67.6% 0.5 1.7% 22.4 Depreciation (vehicle) (6.5) -21.2% (6.5) Depreciation (non-vehicle) (0.4) -1.2% (0.4) Interest on debt (4.9) -16.0% (4.9) Tax (6.5) -19.9% 3.3 10.6% (3.2)

NET INCOME 15.1 46.5% (7.6) -24.8% 7.4 NET INCOME per year 7.5 46.5% (3.8) -24.8% 3.7

ROIC 16.1%

Fleet rental Used car salesPer operational car Per operational car

33.8Car acquisition

42.0Funding (FV)

Funding (PV)33.8

Net car sale revenue 28.5

1 2 3 4 5 20 21 22 23 24

2-year cycle

Expenses: (10.5)

Revenue: 32.4

Financial cycle - Fleet rental

10

Growth opportunities

ConsolidationUS market: 4 players 95% BR market: 4 players 45% 1.893 players 55%

InfrastructurePre salt – R$30bn/year until 2015 Automakers R$23bn until 2013 World Cup 2014 – R$ 71bnOlympic Games in RJ – R$ 31bn

Income / ConsumptionAir traffic 2010: 12 to 18% Credit cards: 45 mm of holdersIncome growth:

Middle class in Brazil 2009 – 98MM

OutsourcingCorporate fleet : 2MM of carsTargeted market 500.000 cars

30% rented

Source: Auto Rental News and Company’s estimates

Source: Petrobras, Santander Equity Market

Source: Gol, Tam, Abecs and Company’s estimates

Source: Company’s estimates

Strong drivers of growth

11

2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9

P I B 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

Growth opportunities: GDP

6.5x

Localiza

GDP

Sector

3.3x

Rental revenues accumulated growth rate – rentals

12

Hertz73

Avis 53

Unidas 74

Localiza290

Others*1951

Others49Hertz

28

Unidas28

Avis30

Localiza89

Growth opportunities: consolidation

Airport locations Off-airport locations

Brazilian car rental agencies

*Source: ABLA, 2009Source: Each company website as of March 31th , 2010

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

13

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 circle

14

37 years of experience…

Raising money

Buyingcars

Renting cars

Selling cars

Competitive advantages

…gives Localiza know-how and superior performance in all chains of the business process

15

Competitive advantages in funding

Raising money

Buyingcars

Renting cars

Selling cars

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

Localiza Rent a Car S.A Aa2.br

Braskem S.A. Aa2.br

Cyrela Brazil Realty Aa2.br

CEMIG Aa2.br

Duke Energy Aa2.br brATam

brAA-Duke EnergybrAACEMIG

brA+Cyrela Brazil RealtybrAA+Braskem S.AbrAA-Localiza Rent a Car S.A

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

Rating

Localiza raises money with lower spreads

16

Competitive advantages in buying cars

Raising money

Buyingcars

Renting cars

Selling cars

* Includes Localiza, Total Fleet and Franchisees purchases.

Localiza2.3%

Localiza’ share in national sales ofFiat, GM, VW and Renault*

GM44%

FIAT33%

VW16%

Others1%

RENAULT6%

Purchases by brand

Localiza purchases cars with better prices and conditions

17

Competitive advantages in renting cars

Raising money

Buyingcars

Renting cars

Selling cars

Strong brand Geographical footprint Scale

102

101

71

Localiza Unidas Hertz Avis

Locations in Brazil

379274

*Source: Each company website as of March 31th , 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 money

Buyingcars

Rentingcars

Sellingcars

Footprint

Pre owned cars

Low mileage

Pre-owned cars

Automaker warranty

Cars financed through third-party financial institutions

Unique product Selling directly to final consumer

Cash generated in used car sales is used to renew the fleet

48 stores

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

Salim Mattar - 37y

Eugênio Mattar – 37y

Roberto Mendes – 25y

Gina Rafael – 29y

Daltro Leite – 25y

Marco Antônio Guimarães – 20y

Bruno Andrade – 18y

BOARD OF DIRECTORS

CEO

COO

Car Acquisition

Legal

Financial ITHuman Resources Administration

Helvia Barcelos – 23y

Competitive advantages: stable management

23

Execution

Management by results: execution with meritocracy

Competitive advantages:management model

Mgt.contract

Action plan Evaluation Reward

Yearlybonus

StockOptions

Variable

Actions

Objectives

Mission

Business

Values

Vision

Planning

24

Results

25

1,856.31,855.71,531.7

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

Net revenues consolidated

CAGR: 16.5%

CAGR: 30.8%

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

Results: growth with profitability

504.1 469.7

134.3 154.0 149.9 152.1197.8

278.1 311.4403.5

85.262.042.0

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

CAGR: 26.3%

CAGR: 23.9%

EBITDA consolidated

26

18.9%20.6% 20.8% 21.8% 21.4%

2005 2006 2007 2008 2009

17.9%20.5%

22.1%24.8% 24.2%

2005 2006 2007 2008 2009

Fleet - consolidated Revenues - consolidated

Source: ABLA, 2009

Fleet

30.4% 13.2%

Results: market share

27

2009Localiza

24.2%

Unidas7.7%Others

68.1%

2008Localiza

24.8%

Unidas7.1%Others

68.1%

Localiza Unidas

Rental and franchised revenues 988.6 1,057.6 308.3 325.3 376.3 84.9

2008 2009 1Q10 2009 1Q10

36,000 33,029

(32.2)(31.6)

78,664

48.8

77,880

116.3

2008

Consolidated fleet 69,460 37,982

Net income 127.4 (17.4)

Revenues

Results: consolidated market share

28

Elected twice the best company in corporate governance(Capital Aberto Magazine)

Elected “the most shareholder-friendly” company(Institutional Investor Magazine - 2008)

Corporate governance

Recognitions & Rewards

47th most valuable brand in Brazil among listed companies(Brand Analytics, May 2010)

The best in the transportation sector(Exame Magazine, July 2009)

Elected twice the best CEO of a small-cap(Institutional Investor Magazine)

29

Financials1Q10

30

1Q10 Highlights

Localiza is back to high levels of growth

R$ millions 1Q09 1Q10 Variation

Net revenue 446.1 563.9 26.4%

Rental net revenues 229.4 268.5 17.0%

EBITDA 115.4 132.1 14.5%

Net income 30.2 48.8 61.6%

Net income / Rental net revenues 13.2% 18.2% 5.0p.p.

Quantity 1Q09 1Q10 Variation

Purchased cars 387 11,486 11,099

Sold cars 7,828 10,948 3,120

End of period fleet 54,817 70,608 15,791

31

Car Rental Division

181.4151.1

607.8585.7

442.7357.2

271.3

2005 2006 2007 2008 2009 1Q09 1Q10

Net revenue (R$ million)

CAGR: 29.2% 3.8%

20.1%

3,4114,668

5,793

7,940 8,062

1,952 2,369

2005 2006 2007 2008 2009 1Q09 1Q10

CAGR: 32.5% 1.5%

21.4%

# daily rentals (thousand)

32

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

2005 2006 2007 2008 2009 2010

Growth resumption

# daily rentals

# daily rentals (thousand)

711.2591.6 649.2

835.4 722.1 811.3

Jan Feb Mar

2009 2010

17.5%25.0%

22.1%

Car Rental Division

33

The average age of the operating fleet is returning to pre-crisis levels…

6.39.5

6.9

2008 2009 1Q10

Average age of operational fleet (month)

12.316.6 18.7

2008 2009 1Q10

Average age of sold cars (month)

Car Rental Division

34

Depreciation per car

1,318.0

332.9

2,546.0 2,577.0

939.1492.3

2005 2006 2007 2008 2009 1Q10

Car Rental Division

…resulting in lower depreciation

-51.1%

35

3,3514,188

5,1446,437

7,099

1,780 1,890

2005 2006 2007 2008 2009 1Q09 1Q10

CAGR: 24.3%

# daily rentals (thousand)

6.2%

Fleet Rental Division

149.2190.2

228.2

276.9 313.4

75.9 84.4

2005 2006 2007 2008 2009 1Q09 1Q10

CAGR: 22.9%

11.2%

Net revenue (R$ million)

13.2%

10.3%

Revenues grew above volume, due to an increase of 4.9% in the average rental rate

36

Depreciation per car

Average depreciation per car decreased again in the 1Q10

3,254.42,981.32,383.3

4,371.75,083.1

2,395.8

2005 2006 2007 2008 2009 1Q10

Fleet Rental Division

-25.6%

37

Used car sales

Sale’s volumes are back to pre-crisis levels

18,76323,174

30,09334,281 34,519

7,828 10,948

2005 2006 2007 2008 2009 1Q09 1Q10

CAGR: 22.3%

39.9%

0.7%

# of sold cars

# of sold cars

2,521 2,471 2,8363,577 3,158

4,213

Jan Feb Mar

2009 2010

41.9%27.8% 48.6%

38

Consolidated net revenuesR$ million

Consolidated net revenues grew 26.4% in the 1Q10

876.91,145.4

1,531.71,855.7 1,856.3

446.1 563.9

2005 2006 2007 2008 2009 1Q09 1Q10

CAGR: 28.4%

26.4%

39

277.9 311.3403.5

504.1 469.7

115.4 132.1

2005 2006 2007 2008 2009 1Q09 1Q10

- 6.8%

Consolidated EBITDA marginsR$ million

Divisions 2005 2006 2007 2008 2009 1Q09 1Q10

44.3%

67.0%

51.5%

5.5%

40.8% 40.6%

64.5%

Rental consolidated 51.0% 51.2% 52.6% 49.3% 49.0% 48.3%

65.2%

0.8%1.4%

40.3%

66.5%

1.1%

42.0%

69.1%

4.6%

44.5%

68.7%

5.4%

Car rental 45.3%

Fleet rental 62.3%

Used car sales 13.2%

CAGR: 22.0%

Consistent EBITDA margins

14.5%

40

Net incomeR$ million

48.830.2

106.5138.2

190.2

127.4 116.3

2005 2006 2007 2008 2009 1Q09 1Q10

61.6%

Net income grew 61.6% in the 1Q10

Reconciliation of EBITDA x Net Income 2008 2009 Var. R$ Var. R$

17.3

(0.6)

16.7

(0.8)

0.2

10.6

(8.1)

18.6

449.6

54.5

504.1

(178.5)

(18.3)

(133.3)

1Q09 1Q10

EBITDA - Car rental and fleet rental

(46.6)

127.4

112.3 129.6

EBITDA - Used car sales

9.5459.1

10.6

469.7

(172.3)

(21.0)

(112.9)

3.1 2.5

EBITDA Consolidated

(47.2)

(43.9)

(34.4)

6.2

(2.7)

20.4

(0.6)

115.4 132.1

116.3

Depreciation of revenue-earning vehicles (29.9) (30.7)

Other depreciation (5.3) (5.1)

Financial expenses, net (38.8) (28.2)

Income tax and social contribution (11.2) (19.3)

Net income (11.1) 30.2 48.8

41

2005 2006 2007 2008 2009 1Q10a

Rental revenues 428,703 555,115 678,507 872,486 931,832 1,073,840

NOPAT 151,059 185,189 241,724 279,674 196,461 269,640

NOPAT margin 35.2% 33.4% 35.6% 32.1% 21.1% 25.1%

Invested capital turnover 0.71 x 0.56 x 0.60 x 0.53 x 0.55 x 0.57 x

ROIC 24.9% 18.8% 21.3% 17.0% 11.5% 14.3%

Average CDI 19.1% 15.3% 12.0% 11.6% 10.0% 10.1%

Spread (ROIC – CDI) p.p. 5.8 3.5 9.3 5.4 1.5 4.3

Spread: ROIC x CDI

4.31.55.43.55.89.3

24.9%

18.8%21.3%

17.0%14.3%

11.5%

19.1%

10.1%

15.3%

10.0%11.6%12.0%

0.0%

3 0.0%

2005 2006 2007 2008 2009 1Q10annualized

0.0%

3 0.0%

Spread (p.p.) ROIC Average CDI

5 p.p. average spread

42

Free cash flow - FCF

Free cash flow - R$ million 2005 2006 2007 2008 2009 1Q10

277.9

(448.2)

361.2

190.9

(32.7)

(24.2)

134.0

448.2

(496.0)

-

(47.8)

(28.0)

58.2

(194.0)

(25.5)

(161.3)

Fleet increase (quantity) 7,342 10,346 7,957 9,930

504.1

8,642 538

132.1469.7403.5 311.3

(590.3)

530.4

251.4

(42.7)

(4.8)

203.9

590.3

(643.3)

-

(983.2)

(53.0)

(32.7)

118.2

(295.4)

(287.0)

(924.5)

222.0

(853.2)

760.0

310.3

(63.4)

13.3

260.2

853.2

(839.0)

874.5

-

14.2

395.4

(23.7)

250.7

275.3

(221.9)

(51.0)

855.1

400.3

(49.0)

(11.5)

339.8

924.5

(963.1)

15.2

(23.4)

(21.0)

(52.8)

295.4

(241.1)

241.1

112.0

(15.6)

1.7

98.1

295.4

(297.1)

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

(22.2) 295.453.2

(16.9)

(7.7)

(44.8)

297.8

983.2

(1,035.4)

(52.2)

(39.9)

205.7 73.5

(14.6)

(8.7)

(299.9)

(188.9)

(283.1) 50.2

EBITDA

Used car sales revenues

Cost of used car sales

EBITDA without used car sales revenues and costs

(-) Income tax and social contribution – current

Working capital variation

Cash provided before capex

Used car sales revenues

Capex of car – renewal

Net capex for renewal

Capex - Property and equipment, net

Free cash flow before growth

Capex of car – growth

Change in amounts payable to car suppliers (capex)

Free cash flow

The Company generated R$50.2 million of free cash flow in the 1Q10, even with a small increase in the fleet

43

Debt – profile and costsR$ million

Debt profile was extended

Gross debt - principal Average effective cost 2010 2011 2012 2013 2014 2015 Total

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

Debentures - 2nd Issuance CDI + 0.59%pa - - 66.6 66.6 66.8 - 200.0

Commercial Papers 108.9% of CDI 200.0 - - - - - 200.0

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

BNDES TJLP + 3.80%pa 0.7 0.9 0.4 - - - 2.0

Total gross debt - principal - 200.7 205.4 225.0 239.6 211.8 160.0 1,242.5

Cash and cash equivalents (250.8) - - - - - (250.8)

Total net debt - principal - (50.1) 205.4 225.0 239.6 211.8 160.0 991.7

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

Debt profile (principal) on 03/31/10

200.7 205.4 225.0 239.6 211.8160.0

250.8Cash

2010 2011 2012 2013 2014 2015

Stand by*

44

Debt – ratiosR$ million

Indebtedness ratios have improved and remain comfortable

535.8 440.4765.1

1,254.5 1,078.6 1,062.1900.21,247.7

1,492.91,752.6 1,907.8 1,907.7

2005 2006 2007 2008 2009 1Q10

Net debt Fleet value

BALANCE AT THE END OF THE PERIOD 2005 2006 2007 2008 2009 1Q10

Net debt / Fleet value (USGAAP) 60% 36% 51% 72%

2.5x

1.8x

2.0x

56%

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

57%

2.3x

1.7x

2.0x*

Net debt / EBITDA (BRGAAP) 1.5x 1.0x 1.3x 1.3x*

Net debt / Equity (USGAAP) 1.4x 0.7x 1.3x 1.5x 1.4x

* annualized

45

Funding

Equity

DebtProfitability comes from

rental divisionsCash to renew the fleet

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

Managing assets

Flexible and liquid assets

Ass

ets

(car

s)

46

RENT3 Performance

RENT3 X IBOVESPA

0

5

10

15

20

25

23-M

ay5-J

ul16

-Aug

28-S

ep11

-Nov

26-D

ec8-F

eb24

-Mar

10-M

ay22

-Jun

3-Aug

15-S

ep30

-Oct

14-D

ec31

-Jan

16-M

ar30

-Apr

13-Ju

n26

-Jul

6-Sep

22-O

ct6-D

ec23

-Jan

10-M

ar23

-Apr

6-Jun

21-Ju

l1-S

ep13

-Oct

25-N

ov12

-Jan

25-Feb8-A

pr25

-May

7-Jul

19-A

ug1-O

ct16

-Nov

4-Jan

18-Feb

Pric

e

0

20

40

60

80

100

120

140

160

180

200

Volume

RENT3 Volume RENT3 IBOVESPA

390%

191%

2005 2006 2007 2008 2009

Average daily volume negotiated of R$11.9 million in 1Q10

Up to March 31, 2010

47

Disclaimer

Thank you!

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’smanagement, 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.