1February / 2012

2

1.The Company

2.Drivers and opportunities

3.Competitive advantages

4.Financials

5.2012 Brazilian Macroeconomic scenario

Agenda

3

Company: integrated business platform

This integrated business platform gives Localiza flexibility and superior performance.

Synergies:

bargaining power

cost reduction

cross selling

� 12,958 cars

� 202 locations in Brazil

� 47 locations in South America

� 32 employees

� 1,251 employees in franchisee locations

� Sales capacity: more than 50,000 cars/year

� 74.6% sold to final consumer

� 66 stores

� 37 cities

� 870 employees

� Deactivated fixed asset sale

� 64,688cars

� 2.8 million clients

� 247 locations

� 4,090 employees

� 31,629 cars

� 687 clients

� 312 employees

Based on the 4Q11

4

Total

1 year

R$ % R$ % R$

Revenues 19.9 100.0% 29.1 100.0% 48.9

Cost (8.2) -41.3% (8.2)

SG&A (2.7) -13.5% (2.9) -9.9% (5.5)

Net car sale revenue 26.2 90.1% 26.2

Book value of car sale (25.5) -90.0% (25.5)

EBITDA 9.0 45.2% 0.7 2.4% 9.7

Depreciation (vehicle) (1.7) -5.8% (1.7)

Depreciation (non-vehicle) (0.3) -1.7% (0.1) (0.5)

Interest on debt (2.4) -8.2% (2.4)

Tax (2.6) -13.3% 1.4 4.7% (1.3)

NET INCOME 6.0 30.2% (2.1) -7.3% 3.9

NOPAT 5.3

ROIC 17.5%

Cost of debt after tax 8.6%

Car Rental Seminovos

per operating car per operating car

Car rental financial cycle

Car sale revenue$26.2

$27.9Car acquisition

1 2 3 4 5 8 9 10 11 12Expenses, interest and tax

1-year cycle

Revenue

Spread8.9p.p.

*

* Investment in cars and PP&E (8%)

5

33.8Car acquisition

Net car sale revenue

26.4

1 2 3 4 5 20 21 22 23 24

2-year cycle

Expenses, interest and tax

Revenue

Fleet rental financial cycle

Spread7.5p.p.

Total

2 anos

R$ % R$ % R$

Revenues 34.0 100.0% 28.7 100.0% 62.7

Cost (9.7) -28.7% (9.7)

SG&A (1.8) -5.3% (2.3) -7.9% (4.1)

Net car sale revenue 26.4 92.1% 26.4

Book value of car sale (25.0) -90.0% (25.0)

EBITDA 22.4 66.0% 1.4 5.0% 23.8

Depreciation (vehicle) (8.3) -28.8% (8.3)

Depreciation (non-vehicle) (0.1) -0.1% (0.1)

Interest on debt (4.0) -14.1% (4.0)

Tax (6.9) -20.3% 3.3 11.4% (3.6)

NET INCOME 15.5 45.6% (7.6) -26.5% 7.9

NET INCOME per year 7.7 45.6% (3.8) -26.5% 3.9

NOPAT (annualized) 5.4

ROIC 16.1%

Cost of debt after tax 8.6%

Fleet Rental Seminovos

per operating car per operating car

6

Pricing strategy

Company: managing assets

Targeted spread

Funding

Equity

Cash to renew the fleet

Assets (cash)

Profitability comes fromrental divisions

As

se

ts (

ca

rs)

Debt

Flexible and liquid assets.

7

Company: stable management

Salim Mattar – 38y

Eugênio Mattar – 38y

Gina Rafael – 30y

João Andrade – 7y

Marco Antônio Guimarães – 21y

Bruno Andrade – 19y

BOARD OF DIRECTORS

CEO

COO

Car Acquisition

Legal

Localiza has a lean and efficient structure.

The succession process is already planned.

Roberto Mendes – 26y

Financial ITHuman

ResourcesAdministration

Daltro Leite – 26y

8

Average growth of roughly 25% p.a. in the last years.

Company: growth and profitability track record

Revenues consolidated

EBITDA consolidated

331.4 408.4 537.4 655.0 842.9 898.51,175.3

1,450.0303.0

446.5588.8

850.5980.8 922.4

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

CAGR: 24.4%

CAGR: 15.9%

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

CAGR: 23.9%

CAGR: 22.6%

-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

9

Rental revenues growth elasticity x GDP

2005 2006 2007 2008 2009 2010

5.5x

Localiza

GDP

Sector

2.8x

Company: GDP elasticity

The drivers combined with Localiza’s competitive advantages resulted in a growth above the industry level.

10

18.9%20.6% 20.8% 21.8% 21.4%

23.5%

2005 2006 2007 2008 2009 2010

Company: market share - fleet

Consolidated

Source: ABLA 2011 yearbook

37.5% 12.5%

Car Rental division Fleet Rental division

11

Company: recognitions and rewards

� 2011 Valor 200� 8th Company in growth and profitability

� Maiores e Melhores do Transporte 2011 (Biggest & Best of Transportation)� The best Company of the vehicle rental sector

�Institutional Investor’s ranking:

� BRIC Breakout� One of the 5 top picks Brazil for 2012

� Exame Magazine� Among the 5 best Companies of the consumer sector, in the article “Where to invest in 2012”

12

1.The Company

2.Drivers and opportunities

3.Competitive advantages

4.Financials

5.2012 Brazilian Macroeconomic scenario

Agenda

13

Drivers and growth opportunities

14

R$456 bn to be invested.

Car rental drivers: investments

Source: EXAME yearbook, 2011-2012

18.4%

Invested

To be invested

19.5%

R$174.6 bn

12.3%

R$150.4 bn

20.8%

R$85.8 bn

R$28.7 bn

18.7%

R$16.8 bn

154137

106

38

7 6 35

Oil/

gasTra

nsporta

tion

Elect

ricity

Wat

er/s

ewag

e

Telec

omm

unicat

ion

Arenas

Oth

ers

Housi

ng

Investments by sectorInvestments in Brazil

15

Income increase and stable daily rental rates increased car rental affordability.

Car rental drivers: income and affordability

GDP per capita

(R$ thousands)

151

260

465510

545

240180 200

350

415380

300

18% 16% 15%

31%

35%

15%

37%38%

51%

22% 20%

27%

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

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

Car rental affordability

Source: Exame magazine (Dec/2010)

6.9 7.5 8.4 9.510.7 11.7

12.814.2

16.0 16.619.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

16

Strong domestic drivers leads to higher volumes.

Source: FGV, BCB, Infraero, Gol, Abecs and Exame (Dec/2011)

Car rental drivers: consumption

1320

31

2003 2009 2014e

53.8% 55.0%

A and B classes - million Potential consumption of Brazilians in 2011 - billion

Total populationR$ 2,500

A and BclassesR$ 930

71

128154

179

2003 2009 2010 2011

80.3%20.3% 16.2%

Air traffic passengers - million

15

45 5169

2003 2009 2010 2011

200.0% 13.3% 35.3%

Credit card holders - million

17Source: ABLA and each company website (October, 2011)

Car rental opportunities: consolidation

Off-airport market is still fragmented.

Avis

32

Unidas

70

Localiza

336 Hertz

83

Others

2004

Outras

22Avis

35

Unidas

27

Localiza

99

Hertz

36

Airport locations Off-airport locations

Car rental locations in Brazil

18

Network expansion in Brazil

34Total

Branches2011

21Franchised

13Owned

Localiza’s network is still being expanded.

Brazilian distribution

Car rental strategy: organic growth

279 312 346381 415 449

254

2005 2006 2007 2008 2009 2010 2011

19Source: ABLA and Datamonitor

Fleet rental drivers: outsourcing trend

Less than 50% of targeted fleet is rented.

Outsourced fleet penetration

Corporate fleet:4,200,000

Targeted fleet:500,000

Rented fleet:232,000

31,629

Brazilian Market World (%)

5.48.9

13.316.5

24.5

37.4

46.9

58.3

Bra

zil

Poland

Cze

ch R

epublic

Ger

man

y

France

Spain Uk

Holla

nd

20

Income increase and credit availability are the major drivers for car sales.

Source: Bradesco, ANFAVEA, Exame (Dec/2011), PIB per capita: IPEADATA.

Used car sales drivers: affordability and penetration

Car purchase affordability

6.5

3.6

1.8

1.8

1.7

1.5

1.2

Brazil

Mexico

Germany

UK

France

Italy

USA

# of inhabitants per car (2009)

8.0 7.9

7.4

6.9

6.5

2005 2006 2007 2008 2009

# of inhabitants per car - Brazil

66

94.9113

2003 2009 2014e

43.8%

19.1%

Middle class - million

148 128115

97 10493

80

5256586875

151180 200

240 260300

350

545510465

380415

0

2 0

4 0

6 0

8 0

1 0 0

1 2 0

1 4 0

1 6 0

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

0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

Number of minimum w ages to buy a new car Monthly minimum salary (R$)

21

7,016,5766,743,699

7,114,870 7,260,054 7,071,525

8,429,3098,862,951

1,620,657 1,830,4022,342,059

2,671,3383,009,482 3,329,170 3,425,499

Brazilian car market: new cars x used cars

New cars X used cars

Source: FENABRAVE (Autos + light commercial)

Used car market is currently 2.5x the new car market.

New cars

Used cars

4.3x 3.7x 3.0x 2.7x2.3x

2.5x 2.6x

2005 2006 2007 2008 2009 2010 2011

22

0km SeminovosUsed Seminovos2 years old Seminovos

1.5% 5.4%

Up to 2 yearsUp to 2 years

476,827476,827

Brazilian car market : 2010 market share

Source: Fenabrave 2010

0KM0KM

3,425,4993,425,499

0.6%

UsedUsed

8,862,9518,862,951

Localiza used cars x Car market

Used cars sold: 50,772

23

Brazilian car market: monthly sale per store

Localiza Seminovos monthly sale per store is in line with market average.

10996

91 9082 84 81

48

FIAT VW FORD GM SEMINOVOS* SECTOR

2010**

RENAULT PEUGEOT

Monthly sale / lots*

Source: Anfavea (National OEM’s Association); number of dealers from each OEM association website (nov/11 )

* Average sales per lots (excluding auto malls – 10 stores)

** Total sales divided by the number of dealers

24

The network is being expanded to support rentals’ growth.

Brazilian distribution New lots

Points of sale

Status

14In construction and

prospection

Used car sales strategy: network expansion

26 32 3549 55

66

13

2005 2006 2007 2008 2009 2010 2011

25

61% 49% 57% 58% 59%

39% 51% 43% 42% 41%

2010 1Q11 2Q11 3Q11 4Q11

3,9403,860

4,159

4,545

4,359

2010 1Q11 2Q11 3Q11 4Q11

Used car sales: sold cars evolution

The increase on sales was supported by the opening of new points of sale.

Sales profile

Financed In cash

Monthly average of sold cars

The macro prudential measures impacted the sales profile in the 1Q11.

26

1.The Company

2.Drivers and opportunities

3.Competitive advantages

4.Financials

5.2012 Brazilian Macroeconomic scenario

Agenda

27

Raising money

Renting cars Selling carsBuying

cars

Cash to renew the fleet or pay debt

$

$

Profitability comes from rental divisions

Competitive advantages: 38 years of experience in managing assets

28

Competitive advantages: raising money

BBB- FitchBaa3 Moody’s

BBB+ S&P B+ S&P B+ Fitch B2 Moody'sGlobal Scale

BBB+ (bra) FitchAa1.br Moody’sAA+(bra) Fitch

A (bra) Fitch A- (bra) FitchNational Scale

Investment grade: lower spreads and longer terms

Localiza raises money with lower spreads when compared to Brazilian competitors.

As of December, 2011.

Renting carsRaisingmoney

Sellingcars

Buyingcars

29

Fiat

25.6%GM

37.0%

Renault

3.1%

Ford

4.3% Others

2.8%

VW

27.2%

2.8%

Competitive advantages: buying cars

Better conditions due to higher volumes

Localiza announced the purchase of 100,000 cars for 2H11 and 2012.

Localiza’ share in national sales of the three largest automakers in 2010: GM, FIAT, VW

Purchases by brand in 2010

Renting carsRaisingmoney

Buyingcars

Sellingcars

30

The Company is present in 226 cities where the other largest networks do not operate.

Competitive advantages: renting cars

Know How

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