Brazil Day Newyork 14 11 2005

Localiza Rent a Car

is the most competitive

regional car rental company

in the world

Company overviewC

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#1 operator in Brazil with 96 corporate owned branches Segments: Individuals, Corporate, Travel Industry, Replacement,

Mini Lease Largest fleet in Brazil: 17,961 cars

#1 operator in Brazil with a fleet of 12,119 cars State of the art technology in fleet management

Presence in 6 countries: Brazil, Argentina, Ecuador, Mexico, Paraguay and Uruguay

187 Franchised agencies, with a fleet of 7,200 cars

13 points of sale located in the country’s largest cities 14,846 sold cars up to 3Q05 78.5% cars sold to final customers

Rent a Car Fleet

Franchising Used Car Sales

Synergy: Cost Reduction; Cross Selling; Bargaining Power

Competitive Advantages

Integrated Business Platform

Largest Distribution

Largest Fleet

Yield Management

Brand Recognition

Leadership

Management


283 branches

6 countries



Largest Fleet

Yield Management

Brand Recognition

Leadership

Management


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

(number of agencies in Brazil)

0%

20%

40%

60%

80%

100%

Localiza 229 Avis 80 Unidas 77 Hertz 57 Europcar 14

228229Integrated Business Platform


Largest Fleet

Yield Management

Brand Recognition

Leadership

Management


Localiza network in airports is larger than the second and the third competitors combined.

(number of agencies in Airports)

68

3228

24

10



Largest Fleet

Yield Management

Brand Recognition

Leadership

Management


The largest fleet in South America

37.280 cars



Largest Fleet

Yield Management

Brand Recognition

Leadership

Management


Yield Management Practices

Price fluctuates with supply & demand on:

Day of the week

Month of the year

City

Events

Volume per customer

Competitors’ monitoring

Localiza has been able to maintain list prices fixed since 1999

increasing its profitability through gains of scale, cost reduction

and productivity.



Largest Fleet

Yield Management

Brand Recognition

Leadership

Management


Localiza has been recognized as Top of Mind for it’s

Customer satisfaction

Quality of services

Strong presence nationwide

High standards of ethical behaviour

Strong financial performance



Largest Fleet

Yield Management

Brand Recognition

Leadership

Management


Facilities



Largest Fleet

Yield Management

Brand Recognition

Leadership

Management


Loyalty Program



Largest Fleet

Yield Management

Brand Recognition

Leadership

Management


Shuttle Service



Largest Fleet

Yield Management

Brand Recognition

Leadership

Management


Hand held



Largest Fleet

Yield Management

Brand Recognition

Leadership

Management

Curitiba - PR

Maceió - AL

Natal - RN

Araguaína - TO

Araraquara - SP

Araxá - MG

Atibaia - SP

Blumenau - SC

Brasília - DF

Caçapava - SP

Caxias do Sul - RS

Chapecó - SC

Colatina - ES

Cuiabá - MS

Dourados - MS

Florianópolis - SC

Franca - SP

Governador Valadares - MG

Ilhéus - BA

Itu - SP

Itumbiara - GO

Manaus - AM

Marília - SP

Maringá - PR

Mogi das Cruzes - SP

Montes Claros - MG

Ouro Preto - MG

Passo Fundo - RS

Piracicaba - SP

Ponta Grossa - PR

Recife - PE

Rio Verde - GO

São Carlos - SP

Sertãozinho - SP

Sinop - MT

Taubaté - SP

Teresina - PI

Timóteo - MG

Toledo - PR

Vitória da Conquista - BA

Bariloche - Argentina

Palermo - Buenos Aires

Las Condes - Buenos Aires

Providência - Argentina

Guayaquil - Equador


Stable management

Fast decisions

Deep knowledge



Largest Fleet

Yield Management

Brand Recognition

Leadership

Management


Released (1)

Unidas

Dallas

(Avis) Locaralpha Master Hertz

Localiza

Consolidated

Net revenue 97,780 46,133 33,584 36,976 nd 616,398Cost 68,480 42,671 41,203 30,192 nd 381,858Gross income 29,300 3,462 (7,619) 6,784 nd 234,540

Sales expense (6,577) --- --- (126) nd (46,771)Adm. exp./ revenue/ oper. exp. (19,223) 3,204 --- (5,671) nd (19,288)Operating income 3,500 6,666 (7,619) 987 nd 168,481

Net financial expense (25,516) (7,367) (3,613) (870) nd (25,798)Equity result --- --- --- --- nd ---Non oper. Income 24,974 1,149 10,159 --- nd 70Taxes/ SC (1,165) (183) (65) (26) nd (40,410)

Net income 1,793 265 (1,138) 91 nd 102,343

Serasa

* It includes R$ 303MM in car resale revenues

Source: Serasa

(1) Released in 02-25-05 (Gazeta Mercantil, Estado de Minas and Valor Econômico)

BR GAAP (R$ thousand)

2004



Largest Fleet

Yield Management

Brand Recognition

Leadership

Management

Financials

Revenues

EBITDA

Net Income

Ratios

Ratings

0

100

200

300

400

500

600

700

2002 2003 2004 YTD Sept04 YTD Sept05

477532

634

443

653

CAGR: +15%

+47%

Net Revenue

Financials

Revenues

EBITDA

Net Income

Ratios

Ratings

0

50

100

150

200

250

2002 2003 2004 YTD Sept04 YTD Sept05

150 152

210

151

205CAGR: +18%

+36%

EBITDA

Financials

Revenues

EBITDA

Net Income

Ratios

Ratings

EBITDA and margin of EBITDA

0

50

100

150

200

250

300

2002 2003 2004 2005

149,8 152,5

210

274

31,4% 28,7%33,1%

32,0%

* Annualized.

*

Financials

Revenues

EBITDA

Net Income

Ratios

Ratings

0

20

40

60

80

100

120

2002 2003 2004 YTD Sept04 YTD Sept05

27

106

91

77 80

CAGR: +19%

+4%

Net Income

64*69*

* Pro forma result disregarding mark-to-market (MTM) of derivative contracts.** Annualized.

Net income / Equity 33,5%* 29,7%* 37,1%* 36,1%**

Financials

Revenues

EBITDA

Net Income

Ratios

Ratings

3,726,414,705,57EBITDA* / NET FINANCIAL EXPENSES**

0,950,960,361,01NET DEBT / EQUITY

0,490,460,220,56NET DEBT / FLEET

1,281,340,571,32NET DEBT / EBITDA

30/09/0531/12/0431/12/0331/12/02

* annualized** except fair value adjustment

Financials

Revenues

EBITDA

Net Income

Ratios

Ratings

Standard & Poors

brA positive outlook

As the Brazilian economy

is performing well

we have some opportunities

Opportunities

Consolidation

GDP

Airport Traffic

Credit Expansion

Replacement

34%

20%10%

18%

10%8%

Consolidated market in USA: five players = 92%

Source: Fleet Central. 2004 data

Local players

http://www.enterprise.com/car_rental/home.do?transactionId=WebTransaction2

Opportunities

Consolidation

GDP

Airport Traffic

Credit Expansion

Replacement

1999 = 59% 2001 = 72%

Consolidation in Europe: six players

41%

15%13%

5%

5%

10%

11%28%

18%16%

8%

6%

11%

13%

Local players

Local playersLocal players

Opportunities

Consolidation

GDP

Airport Traffic

Credit Expansion

Replacement

69%

16%

7%4% 4%

Local players

Localiza

UnidasAvis Hertz

Consolidation in Brazil 2004: four players = 31%

Opportunities

Consolidation

GDP

Airport Traffic

Credit Expansion

Replacement

69%

16%

7%4% 4%

Local players

Localiza

UnidasAvis

Hertz

Number of car rental companies

Consolidation in Brazil 2004: four players = 31%

0

0,5

1

1,5

2

2,5

3

2002 2003 2004

CAGR = -11%

2,511 2,340 1,985

Opportunities

Consolidation

GDP

Airport Traffic

Credit Expansion

Replacement

Vertical expansion

Horizontal expansion

Franchisees’ acquisition

Consolidation

Opportunities

Consolidation

GDP

Airport Traffic

Credit Expansion

Replacement

Horizontal expansion

Consolidation

Opportunities

Consolidation

GDP

Airport Traffic

Credit Expansion

Replacement

Car rental division

average growth of 4 x GDP

in the last five years

GDP

Opportunities

Consolidation

GDP

Airport Traffic

Credit Expansion

Replacement

Airport traffic

Low cost – low fare airlines

have increased 19% y/y growth

(2005/2004)

Opportunities

Consolidation

GDP

Airport Traffic

Credit Expansion

Replacement

Credit expansion

55,4 million major credit cards

23 million credit card holders

Up to 10 installments just in Localiza

Opportunities

Consolidation

GDP

Airport Traffic

Credit Expansion

Replacement

Replacement It is a growing market

- Brazil has 32 million cars but only 8 million insured

- The hit frequency rate is 15% / year

- The potential market is 1,2 million of transactions = 10 million of daily rentals

Localiza has 35% of this market

Localiza is very well positioned to grab this market due to it’s geographic foot print

Rent 3

36.9% Free Float and foreign investors participation of roughly 84,8%

Performance RENT3 since IPO: +98% (1)

Relative Performance RENT 3 x IBOV: almost +60,0% (1)

Average Volume of R$3.3 million

Target price of R$26.00*

(1) From May 23 (IPO date until November11, 2005 * Credit Suisse Report as of November 8, 2005

Localiza.

The opportunity

you were

waiting for.