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$ millions, USGAAP

March, 2010

2

Funding

Equity

Debt

Ass

ets

(car

s)

Profitability comes fromrental divisions

Cash to renew the fleet

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

Managing assets

Flexible and liquid assets.

3

Integrated business platform

This integrated business platform gives Localiza flexibility and superior performance

Synergies:cost reductioncross sellingbargaining power

8,791 cars238 locations in 9 countries 167 locations in Brazil 71 locations in South America23 employees

34,519 cars sold78% sold to final consumer49 stores588 employees

47,517 cars1.9 million clients214 locations2,768 employees

22,778 cars584 clients225 employees

As of 12/31/2009

4

Consolidated results

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

2008 2009 Var.

Net revenue 1,855.7 1,856.3 0.0%

EBITDA 504.1 469.7 -6.8%

Net income 127.4 116.3 (R$11.1)

Net margin 6.9% 6.3% -

4Q08 4Q09 Var.

Net revenue 422.5 551.1 +30.4%

EBITDA 125.8 128.9 +2.5%

Net income (loss) (29.8) 38.4 R$68.2

Net margin -7.1% 7.0% -

5

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)

6

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 719 815

oct nov dec

2008 2009

711

835

jan

2009 2010

7

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.

8

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.

9

Car rental division

102

9474

Localiza Unidas Hertz Avis

Localiza network is larger than the second, third and fourth competitors combined.

Source: each company website as of 12/31/2009

Locations in Brazil Cities in Brazil

381

270

269

79 60 50

Localiza Unidas Hertz Avis

The main networks are not present in 190 out of the 269 cities in which Localiza operates.

10

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)

11

Fleet rental division

# of daily rentals (thousand)

149.2190.2 228.2

276.9 313.4

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%

12

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 dec2008 2009

70.0%58.0% 81.9

%

2,5213,577

jan

2009 2010

41.9%

13

1326 32 35

49

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

14

Used car sales division market share

Source: Anfavea e Fenabrave

Localiza’s used car has a low market share.

34,519 Cars sold by Localiza in 2009

(Seminovos)

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

2009 Brazilian car sales market

Localiza’s share Total market

15

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

3,763.32,209.2

1,133.4729.7

1Q 2Q 3Q 4Q

2008 2009

16

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 4Q2008 2009

Average sold fleet age

17

Depreciation per car – fleet rental division

2,981.3 2,383.3

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

18

Diversification and flexibility of fleet

GM44%

FIAT33%

VW16%

Others1%

RENAULT6%

# of purchased cars by brand

Fleet strategically diversified to obtain lower depreciation.

19

Net revenues

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

Consolidated net revenues(R$ million)

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*

Média 1.9 4.4 -0.2*

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

* Estimate: Focus Report, Brazilian Central Bank

20

277.9 311.3403.5

504.1 469.7

125.8 128.9

2005 2006 2007 2008 2009 4Q08 4Q09

EBITDA margin

Divisions 2005 2006 2007 2008 2009 4Q08 4Q09

44.3%

67.0%

51.5%

5.5%

44.4% 43.0%

65.9%

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

68.9%

0.4%1.6%

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%

EBITDA consolidated (R$ millions)

CAGR: 22.0%

EBITDA margins are still consistent.

- 6.8%

2.5%

21

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%

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

449.6

54.5

504.1

(178.5)

(18.3)

(133.3)

(46.6)

4Q08 4Q09 Var. R$

EBITDA - Car rental and fleet rental

127.4

5.09.5459.1

10.6

469.7

(172.3)

(21.0)

(112.9)

(1.9)

EBITDA Consolidated

(47.2)

(43.9)

(34.4)

6.2

(2.7)

20.4

116.3

125.8 128.9 3.1

(0.6)

85.1

(0.1)

20.0

(11.1)

(39.9)

68.2

122.7 127.7

EBITDA - Used car sales 3.1 1.2

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

Other depreciation (5.0) (5.1)

Financial expenses, net (44.5) (24.5)

Income tax and social contribution 19.2 (20.7)

Net income (29.8) 38.4

22

Free cash flow - FCF

205.7295.4

2008 2009

FCF before growth (R$ millions)

Free cash flow - R$ millions 2008 2009504.1 469.7

(924.5)855.1400.3(49.0)(11.5)339.8924.5

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

(23.4)(21.0)295.4

(241.1)241.1295.4

(983.2)874.5 395.4 (52.8)(44.8)297.8 983.2

(1,035.4)

(52.2)(39.9)205.7

(299.9)(188.9)(283.1)

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

43.6% In 2009 Localiza presented strong cash generation.

23

Net debt

Net debt was reduced by R$175.9 million.

1,254.5

1,078.6

12/31/2008 12/31/2009

-14.0%

Net debt (R$ millions)

24

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.

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

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 0.9 0.9 0.4 - - - 2.2

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

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

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

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

25

Debt - ratios

Significant improvement in debt ratios.

535.8 440.4765.1

1,254.5 1,078.6900.2

1,247.71,492.9

1,752.6 1,907.8

2005 2006 2007 2008 2009

(R$ millions)

Net debt Fleet value

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

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

2.5x

1.8x

2.0x

57%

Net debt / EBITDA (USGAAP) 1.9x 1.4x 1.9x 2.3x

Net debt / EBITDA (BRGAAP) 1.5x 1.0x 1.3x 1.7x

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

26

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)

27

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%

28

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.

29

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.

30

Thank you!