1October 13, 2011

Localiza Rent a Car S.A.3Q11 Results

R$ million, IFRS

2

Car Rental Division

Average rental rate increased due to a change in the business mix and better negociations.

# daily rentals (thousand)

Net revenues (R$ million)

3,4114,668

5,793

7,940 8,062

10,734

7,7209,470

2,863 3,227

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

CAGR: 25.8%

22.7%

12.7%

241.8208.7

714.2

566.6

802.2585.2565.2

428.0346.1

258.6

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

CAGR: 25.4%26.1%

15.9%

3

3Q comps are higher in the car rental due to the effects of 2010 elections.

1Q 2Q 3Q 4Q

2009

2010

2011

+29.3%+27.8%

+23.4%

Excluding effects of election

Quarterly evolution of the number of rental days

4

Fleet Rental Division

Growth in rental rate derived from the increase in basic interest rate.

# daily rentals (thousand)

Net revenues (R$ million)

117.4142.0

184.0219.8

268.4 303.2361.1

260.2332.9

92.9

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

CAGR: 20,5%

27,9%

26,4%

3,3514,188

5,1446,437

7,0998,044

5,8627,086

2,046 2,461

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

CAGR: 19.1%

20.9%

20.3%

5

Net Investment

Flexibility in the car purchase to adjust fleet to demand.

Fleet increase * (quantity)

7,342 10,346 7,957

18,649

9,930 8,642

Purchased cars Sold cars

243.5341.5

210.4354.5 281.8

588.5

Purchases (accessories included) Used car sales revenues

Net investment (R$ million)

26,10533,520

38,05044,211 43,161

9,49318,763 23,174

30,093 34,281 34,519

12,859 13,635

38,16040,607

17,798

65,934

37,694

47,285

34,486

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

690.0930.3 1,060.9

1,335.3 1,204.2

1,910.4

1,199.6

521.7294.2446.5 588.8

850.5 980.8 922.4

1,321.9939.6

354.2 394.6

1,119.81,088.0

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

6,121 466

4,939 (4,142)

260.0 31.8

167.5 (100.4)

6

Utilization rate and average operating fleet age

Fleet is adjusted according to demand.

66.2% 69.9% 68.2% 68.9% 69.7%66.3%74.1%

6.9 6.6 6.3 5.5 6.3 6.5 7.3

0 .0 %

1 0 .0 %

2 0 .0 %

3 0 .0 %

4 0 .0 %

5 0 .0 %

6 0 .0 %

7 0 .0 %

8 0 .0 %

9 0 .0 %

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

Utilization rate Average operating fleet age

Elections effect

Utilization rate and average operating fleet age

7

Distribution

# of used car sales stores

2632 35

4955

61

13

2005 2006 2007 2008 2009 2010 9M11

279 312 346 381 415 440

254

2005 2006 2007 2008 2009 2010 9M11

# of rental locations in Brazil

Localiza and Seminovos networks are being expanded to increase sales volumes.

8

31,373 35,686 39,112 47,51761,445 50,450 57,07711,762

14,630 17,790 23,40322,778

26,61525,305

30,732

24,103

2005 2006 2007 2008 2009 2010 9/30/2010 9/30/2011

End of period fleet

The 15.9% growth in the fleet is in line with the rental volume increase.

End of period fleet (quantity)

CAGR: 19.7%

35,86546,003 53,476

62,51570,295

88,060

Car rental Fleet rental

87,80975,755

15.9%

9

Consolidated net revenuesR$ million

Rental and Seminovos’ increase in volumes and prices resulted in higher revenues.

408.4 537.4 655.0 842.9 898.51,175.3

835.5 1,057.4

304.6 362.9

446.5588.8

850.5980.8 922.4 939.6

1,088.0

354.2 394.6

1,321.9

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

Rentals Seminovos

CAGR: 23.9%

854.91,126.2

1,505.5

1,823.7 1,775.11,820.9

2,145.42,497.2

658.8757.5

20.9%

15.0%

19.1%

26.6%

10

277.9 311.3403.5

504.1 469.7

649.5

461.3

603.0

178.7 216.2

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

EBITDA R$ million

The 30.7% growth in the EBITDA in the 9M11 was above the rental revenues increase.

CAGR: 18.5%

2.3%

52.7%

67.4%

45.9%

9M10

3.1%

53.8%

68.9%

46.9%

9M11

2.6%

52.3%

68.0%

45.3%

2010

5.6%

53.3%

69.1%

45.9%

2008

57.5%54.8%51.1%54.5%52.9%53.6%Rentals consolidated

1.9%

72.1%

50.4%

3Q11

3.4%

68.9%

48.7%

3Q10

1.1%

68.7%

41.9%

2009

4.6%

71.4%

43.4%

2006

5.5%

71.3%

46.0%

2007

13.2%Used car sales

65.5%Fleet Rental

47.5%Car rental

2005Divisions

30.7%

21.0%

11

Average depreciation per carR$

Hot used car market

Financial crisis effectNormal market conditions

1,536.0 1,619.8 1,578.5

332.9

2,546.0 2,577.0

939.1492.3

2005 2006 2007 2008 2009 2010 9M10 9M11

* Annualized

* *

1,318.01,580.51,492.3

1,251.9

1,942.5 1,993.2

1Q10* 1Q11* 2Q10* 2Q11* 3Q10* 3Q11*

Depreciation evolution - per year

The launching of new models increases 3Qs depreciation.

Average depreciation per car remained stable in the year.

Depreciation evolution - per quarter

* Annualized

12

Average depreciation per carR$

3,509.7 3,306.04,080.9

2,395.8

5,083.14,371.7

2,383.32,981.3

2005 2006 2007 2008 2009 2010 9M10 9M11

* Annualized

* *

3,254.43,693.9

4,241.8 3,990.6

2,989.4

4,020.8

1Q10* 1Q11* 2Q10* 2Q11* 3Q10* 3Q11*

Hot used car market

Financial crisis effect

The fleet renewal after the end of the tax exemption resulted in higher depreciation.

Depreciation evolution - per year

Depreciation evolution - per quarter

* Annualized

13

Consolidated net incomeR$ million

181.1

(71.7)

(88.8)

(15.4)

(104.3)

461.3

21.3

440.0

9M10

212.9

(91.4)

(137.8)

(17.4)

(143.5)

603.0

33.7

569.3

9M11

31.8

(19.7)

(49.0)

(2.0)

(39.2)

141.7

12.4

129.3

Var. R$

134.2

(54.3)

(17.2)

(0.1)

26.0

179.8

23.8

156.0

Var. R$

116.3

(47.2)

(112.9)

(21.0)

(172.3)

469.7

10.6

459.1

2009

250.5

(101.5)

(130.1)

(21.1)

(146.3)

649.5

34.4

615.1

2010

37.5216.2178.7EBITDA Consolidated

0.4

(2.8)

(18.4)

0.1

(16.0)

(4.3)

41.8

Var. R$

75.374.9Net income

(32.2)(29.4)Income tax and social contribution

(49.8)(31.4)Financial expenses, net

(5.0)(5.1)Other property and equipment depreciation

(53.9)(37.9)Cars depreciation

7.611.9EBITDA – Used car sales

208.6166.8EBITDA – Rentals and franchising

3T113T10Reconciliation EBITDA x net income

2011 results were impacted mainly due to interest rate increase.

75.374.9

212.9181.1

250.5

116.3127.4190.2

138.2106.5

2005 2006 2007 2008 2009 2010 9M10 9M11 3Q10 3Q11

0.5%

17.6%

14

Free cash flow - FCF

Strong cash flow generation before growth and interest expenses.

(*) without technical discount deduction

18,649

(0.8)

111.3

(540.3)

428.2

(51.1)

(48.2)

(1,370.1)

1,321.9

527.5

54.5

(57.8)

1,203.2

(1,321.9)

649.5

2010

4668,6429,9307,95710,3467,342Fleet increase - quantity

107.8

(195.8)

(13.7)

317.3

(37.4)

(18.1)

(1,106.1)

1,088.0

372.8

(59.4)

(57.3)

974.5

(1,088.0)

603.0

9M11

295.4

241.1

(241.1)

295.4

(21.0)

(25.5)

(947.9)

922.4

341.9

(11.5)

(49.0)

855.1

(922.4)

469.7

2009

(283.1)

(188.9)

(299.9)

205.7

(39.9)

(54.6)

(1,035.4)

980.8

300.2

(44.8)

(52.8)

874.5

(980.8)

504.1

2008

(22.2)53.2 (161.3)Free cash flow after growth and before interest

(51.0)222.0 (25.5)Change in accounts payable to car suppliers (capex)

(221.9)(287.0)(194.0)Capex of car - growth

250.7 118.2 58.2 Free cash flow before growth and interest

(23.7)(32.7)(28.0)Capex – other property and equipment, net

11.5 (54.5)(49.5)Net capex for renewal

(839.0)(643.3)(496.0)Capex of car - renewal

850.5 588.8 446.5 Used car sales net revenues

262.9 205.4 135.7 Cash provided before capex

13.3 (4.8)(24.2)working capital variation

(63.4)(42.7)(32.7)(-) Income tax and social contribution

760.0 530.4 361.2 Depreciated cost of used car sales (*)

(850.5)(588.8)(446.5)Used car sales net revenues

403.5 311.3 277.9 EBITDA

200720062005Free cash flow - R$ million

15

Debt profile and costs R$ million

6 years term for debt payment.

207.7 230.3 299.8 249.3

514.0372.0

0.7

2011 2012 2013 2014 2015 2016 2017

Cash564.6

-

-

-

TJLP + 3.8%pa / CDI + 2.3%pa

CDI +1.95%pa

112.8% of CDI

112.0% to 114.0% of CDI

CDI + 0.44%pa

108.7% to 114.7% of CDI and

CDI+1.44%a.a.

Contract rate

500.0250.0250.0-----114.5% of CDIDebenture 5th Issuance

400.0--100.0100.0100.0100.0 -CDI + 2.0%paDebenture 1st Issuance: Total Fleet

(564.6)------(564.6)-Cash and cash equivalents on 09/30/11

76.0------76.0-Interests accrued until 09/30/11, net of interest paid

1,385.2372.0 514.0 249.3 299.8 230.3207.7 (487.9)-Net debt

3.8----1.0 2.1 0.7 TJLP + 3.8%pa /

CDI + 2.3%paOther

370.0 122.0 74.0 63.0 63.0 24.0 24.0 -114.2% of CDIDebenture 4th Issuance

200.0 ---66.8 66.6 66.6 -CDI + 0.6%paDebenture 2nd Issuance

400.0-190.0 86.370.0 38.715.0 -111.1% - 114.7%

of CDI and CDI+1.79%a.a.

Working capital

Total2017201620152014201320122011Effective cost

16

Debt – ratiosR$ million

Comfortable debt ratios.

Net debt Fleet value

4.4x 5.0x 4.2x 3.8x 5.4x 4.8x 3.3x EBITDA / Net financial expenses

1.4x

2.0x

52%

2010

1.5x

2.3x

57%

2009

2.0x

2.5x

72%

2008

1.3x1.3x0.7x1.4xNet debt / Equity

1.7x1.9x1.4x1.9xNet debt / EBITDA (*)

57%51%36%60%Net debt / Fleet value

9M11200720062005SALDOS EM FINAL DE PERÍODO

(*) annualized

535.8 440.4765.1

1,254.5 1,078.6 1,281.1 1,385.2900.2

1,247.71,492.9

1,752.6 1,907.82,446.7 2,430.7

2005 2006 2007 2008 2009 2010 9M11

17

16.9%

8.9%13.6% 10.9%

8.4% 8.2% 7.8% 7.8%

16.9%11.5%

24.8%18.7%

21.3%17.0%

2005 2006 2007 2008 2009 2010 9M11

Interest on debt after tax ROIC

Spread

Spread of 8.0p.p. despite the growth on basic interest rate.

8.0

8.9%

16.9%

0.58x

29.2%

2,428.8

9M11

9.1

7.8%

16.9%

0.59x

28.6%

1,984.6

2010

8.8

8.2%

17.0%

0.53x

32.1%

1,642.3

2008

3.7

7.8%

11.5%

0.53x

21.9%

1,702.3

2009

12.97.811.2Spread (ROIC – Interest after tax) - p.p.

8.4%10.9%13.6%Interest on debt after tax

21.3%18.7%24.8%ROIC

0.58x0.55x0.67xTurnover of average capital investment (over rental net revenues)

36.9%34.5%37.0%NOPAT margin (over rental net revenues)

1,137.5 986.2 606.3 Average capital investment - R$ million

200720062005

11.2p.p.7.8p.p. 12.9p.p. 8.8p.p.

3.7p.p.9.1p.p. 8.0p.p.

*

* Annualized

18

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.

Nora LanariIR

Roberto MendesCFO-IRO

Silvio GuerraIR

www.localiza.com/irE-mail: ri@localiza.comPhone: +55 31 3247-7024