1

Localiza Rent a Car S.A.2Q10 Results - R$ million, USGAAP

July, 2010

Guarulhos International Airport Brach - Sao Paulo - BrazilOpened: 06/11/2010

2

Localiza started its business in 1973…

…with 6 used beetles, 100% financed.

3

Timeline: growth by adjacencies

IPO

80,832 cars9 countries

458 locations

80,832 cars9 countries

458 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

2Q10

4

Ownership breakdown

* Includes 4.226.300 shares in Treasury

100%100%100%

EugenioMattar

AntonioClaudio Resende

FlavioResende Free-Float *

11.1% 8.6% 12.0% 8.6% 59.7%

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: 56.2%Net income: 68.6%

Revenue: 15.2%EBITDA: 39.4%Net income: 28.5%

Revenue: 0.5%EBITDA: 1.1%Net income: 2.8%

Revenue: 51.5%EBITDA: 3.3%Net income: -

9,777 cars168 locations in Brazil71 locations in South America29 employees

Capacity to sell 50,000 cars/year73.4% sold to final consumer48 stores650 employees

47,727 cars2.1 million clients219 locations2,918 employees

23,328 cars614 clients242 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

Car rental financial cycle

$29.7Funding (FV)

Funding (PV)$26.6

Net car sale revenue$24.7

$26.6Car acquisition

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

1-year cycle

Revenue: 18.7

Total1 year

R$ % R$ % R$Revenues 18.7 100.0% 26.8 100.0% 45.5 Cost (8.2) -43.8% (8.2) SG&A (2.6) -13.6% (2.1) -7.9% (4.7) Net car sale revenue 24.7 92.1% 24.7 Book value of car sale (24.1) -90.0% (24.1)

EBITDA 8.0 42.6% 0.6 2.1% 8.5 Depreciation (vehicle) (1.5) -5.6% (1.5) Depreciation (non-vehicle) (0.4) -2.0% (0.4) Interest on debt (1.7) -6.5% (1.7) Tax (2.3) -12.2% 0.8 3.0% (1.5)

NET INCOME 5.3 28.4% (1.9) -7.0% 3.5 ROIC 17.5%

Car rental Used car salesPer operational car Per operational car

9

33.8Car acquisition

42.0Funding (FV)

Funding (PV)33.8

Net car sale revenue 26.6

1 2 3 4 5 20 21 22 23 24

2-year cycle

Expenses: (11.5)

Revenue: 32.0

Fleet rental financial cycle

Total2 years

R$ % R$ % R$Revenues 32.0 100.0% 28.8 100.0% 60.8 Cost (9.7) -30.4% (9.7) SG&A (1.8) -5.5% (2.2) -7.6% (3.9) Net car sale revenue 26.6 92.4% 26.6 Book value of car sale (25.9) -90.0% (25.9)

EBITDA 20.6 64.1% 0.7 2.4% 21.2 Depreciation (vehicle) (6.5) -22.6% (6.5) Depreciation (non-vehicle) (0.1) -0.2% (0.1) Interest on debt (4.6) -16.0% (4.6) Tax (6.1) -19.2% 3.1 10.8% (3.0)

NET INCOME 14.3 44.8% (7.3) -25.3% 7.1 NET INCOME per year 7.2 44.8% (3.6) -25.3% 3.5

ROIC 15.2%

Fleet rental Used car salesPer operational car Per operational car

10

Growth opportunities

ConsolidationUS market: 4 players 95% BR market: 4 players 45% 1.951 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

Others*1,951

Avis 53

Hertz 73

Unidas 74

Localiza 296

Avis29

Unidas29

Hertz30

Others49

Localiza91

Growth opportunities: consolidation

Airport locations Off-airport locations

Brazilian car rental agencies

*Source: ABLA, 2009Source: Each company website as of June 30th , 2010

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

13

Market share - Revenues

Localiza32.2%

Hertz2.6%

Others57.4%

Unidas4.9%

Avis2.9%

Source: Euromonitor International

Growth opportunities: consolidation

14

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

15

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

16

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

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

Localiza Rent a Car S.A brAA-Braskem S.A brAA+Cyrela Brazil Realty brA+

CEMIG brAADuke Energy brAA-

Tam brA

Rating

Localiza raises money with lower spreads

17

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

18

Competitive advantages in renting cars

Raising money

Buyingcars

Renting cars

Selling cars

Strong brand Geographical footprint Scale

103

102

70

Localiza Unidas Hertz Avis

Locations in Brazil

387

275

*Source: Each company website as of June 30th , 2010

19

Competitive advantages: network footprint

Airport and off airport branches located in easy-access and intense traffic places

20

Competitive advantages in used car sales

Raising money

Buyingcars

Rentingcars

Sellingcars

Footprint

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

21

Competitive advantages: used car sales network

Around 80% of used cars are sold directly to final consumers

22

Competitive advantages: additional fleet

Cars available for sale are used by car rental division in peaks of demand

23

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

24

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

25

Results

26

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

27

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

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

Best IR officer – large cap(IR Magazine Awards, July 2010)

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

Financials2Q10

30

2Q10 Highlights

Localiza is back to high levels of growth.

R$ millions 2Q09 2Q10 Variation

Consolidated ret revenue 416.5 575.6 38.2%

Net rental revenues 220.2 284.1 29.0%

EBITDA 109.1 150.5 37.9%

Net income 27.1 57.5 112.2%

Net income / Net rental revenues 12.3% 20.2% 7.9p.p

Record

Record

Record

Record

Quantity 2Q09 2Q10 VariationPurchased cars 4,946 11,323 128.9%

Sold cars 7,279 10,679 46.7%

End of period fleet 52,223 71,055 36.1%

31

Car Rental Division

191.6140.8

372.9291.9

607.8585.7

442.7357.2271.3

2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10

Net revenue (R$ million)

CAGR: 29.2%3.8%

In the 2Q10 revenue grew above volume due to an increase of 3.3% in the average daily rate.

36.1%

3,4114,668

5,793

7,940 8,062

3,8414,857

1,889 2,488

2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10

CAGR: 32.5%1.5%

31.7%

# daily rentals (thousand)

27.7%

26.4%

32

3,3514,188

5,1446,437 7,099

3,490 3,816

1,710 1,926

2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10

CAGR: 24.3%

12.6%

Fleet Rental Division

# daily rentals (thousand)

149.2190.2

228.2276.9 313.4

152.1 173.5

76.2 89.1

2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10

CAGR: 22.9%

16.9%

Net revenue (R$ million)

13.2%

10.3%

14.1%

9.3%

In the 2Q10 revenue grew above volume due to an increase of 4.1% in the average daily rate.

33

Used car sales

Sale’s volumes are still presenting strong growth.

18,76323,174

30,09334,281 34,519

15,10721,627

7,27910,679

2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10

CAGR: 22.3%

46.7%

0.7%

# of sold cars

43.2%

34

The average age of the operating fleet returned to pre-crisis levels.

6.39.5

6.6

2008 2009 2Q10

Operating fleet(month)

Car Rental Division – Average age

12.316.6 15.3

2008 2009 2Q10

Sold cars (month)

35

Consolidated net revenuesR$ million

Consolidated net revenues grew 38.2% in the 2Q10.

876.91,145.4

1,531.71,855.7 1,856.3

862.71,139.4

416.5575.6

2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10

CAGR: 28.4%

38.2%

32.1%

Record

36

277.9 311.3403.5

504.1 469.7

224.5282.6

109.1150.5

2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10

- 6.8%

EBITDAR$ million

Divisions 2005 2006 2007 2008 2009 1H09 1H10

39.4%

67.1%

48.9%

1.1%

44.3% 42.6%

64.1%

49.5%

67.0%

51.5%

1.6%5.5%

2Q09 2Q10

44.5%

63.7%

Rental consolidated 51.0% 51.2% 52.6% 49.3% 48.8% 50.7%

2.2%

37.9%

68.8%

0.8%

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%

Localiza is still presenting consistent EBITDA margins.

37.9%25.9%

Record

37

Average depreciation per carR$

1,448.5

332.9

2,546.0 2,577.0

939.1492.3

2005 2006 2007 2008 2009 1H10

Car Rental

Average depreciation per car showed a strong drop when compared to the one in 2009.

3,475.82,981.3

2,383.3

4,371.75,083.1

2,395.8

2005 2006 2007 2008 2009 1H10

Fleet Rental

- 20.5%

- 43.8%

annualized

annualized

38

Net incomeR$ million

57.527.1

106.2

57.3

106.5

138.2

190.2

127.4 116.3

2005 2006 2007 2008 2009 1H09 1H10 2Q09 2Q10

112.2%

Record net income since IPO in 2005.

Reconciliation of EBITDA x Net Income 2008 2009 Var. R$ 1H09 1H10

219.8 273.3

9.3

282.6

(66.5)

(10.2)

(57.4)

(42.3)

106.2

4.7

224.5

(70.0)

(10.7)

(65.5)

(21.0)

57.3

Var. R$ Var. R$

53.5

4.6

58.1

3.5

0.5

8.1

(21.3)

48.9

36.5

4.9

41.4

4.3

0.3

(2.4)

(13.2)

30.4

449.6

54.5

504.1

(178.5)

(18.3)

(133.3)

2Q09 2Q10

EBITDA - Car rental and fleet rental

(46.6)

127.4

107.5 144.0

EBITDA - Used car sales

9.5459.1

10.6

469.7

(172.3)

(21.0)

(112.9)

1.6 6.5

EBITDA Consolidated

(47.2)

(43.9)

(34.4)

6.2

(2.7)

20.4

(0.6)

109.1 150.5

116.3

Depreciation of revenue-earning vehicles (40.1) (35.8)

Other depreciation (5.4) (5.1)

Financial expenses, net (26.8) (29.2)

Income tax and social contribution (9.7) (22.9)

Net income (11.1) 27.1 57.5

85.3%

Record

39

Free cash flow - FCF

Free cash flow - R$ million 2005 2006 2007 2008 2009 1H10277.9 282.6

(586.9)

539.6

235.3

(31.0)

(12.8)

191.5

586.9

(637.7)

-

(50.8)

(12.8)

127.9(34.9)

(8.3)

84.7

Fleet increase (quantity) 7,342 10,346 7,957 9,930 8,642 1,182

(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)

311.3

(590.3)

530.4

251.4

(42.7)

(4.8)

203.9

590.3

(643.3)

-

(53.0)

(32.7)

118.2 (287.0)

222.0

504.1

53.2

469.7403.5

(853.2)

760.0

310.3

(63.4)

13.3

260.2

853.2

(839.0)

-

14.2

(23.7)

250.7

(983.2)

(221.9)

874.5

(51.0)

(924.5)

855.1

400.3

(49.0)

(11.5)

339.8

924.5

(963.1)

15.2

(23.4)

(21.0)

295.4(241.1)

241.1

395.4

(52.8)

(44.8)

297.8

983.2

(1,035.4)

Change in amounts payable to car suppliers (capex) -

295.4(22.2)

(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 growthCapex of car – growth

Change in amounts payable to car suppliers (capex)

Free cash flow

Even with the addition of 1,182 cars, the Company still generated R$84.7 million in free cash flow in the 1H10.

40

Net debt reconciliationR$ million

-1,074.6

(65.7)Interest

and others

(15.0)Interest on own

capital and dividends

Free cash flow84.7

Net debt 06/30/2010

-1,078.6

Net debt 03/31/2010

Net debt remained stable.

41

Debt – profile and costsPrincipal on 6/30/10 - R$ million

Debt profile was stretched and the Company has enough cash to support its growth.

0.4 0.9

249.0268.6 284.8

396.5Cash and cash

equivalents

2010 2011 2012 2013 2014 2015 2016

238.0264.0

122.0

2017

Gross debt – principal Average effective cost 2010 2011 2012 2013 2014 2015 2016 2017 Total

Working capital 111.1% a 115.0% of CDI and CDI + 1.50%pa - - 58.0 78.0 55.0 75.0 190.0

-

74.0

-

-

264.0

-

264.0

456.0

Debenture 2nd Issuance CDI + 0.59%pa - - 66.6 66.6 66.8 -

-

-

122.0

-

-

122.0

-

200.0

Debenture 4th Issuance 114.2% of CDI - - 24.0 24.0 63.0 63.0 370.0

Debenture 1st Issuance:Total Fleet CDI + 2.02%pa - - 100.0 100.0 100.0 100.0 400.0

BNDES TJLP + 3.80%pa 0.4 0.9 0.4 - - - 1.7

Total gross debt – principal - 0.4 0.9 249.0 268.6 284.8 238.0 1,427.7

Cash and equivalents (396.5) - - - - - (396.5)

122.0Total net debt – principal - (396.1) 0.9 249.0 268.6 284.8 238.0 1,031.2

42

Debt – ratiosR$ million

Every indebtedness ratios improved and have remained comfortable.

535.8 440.4765.1

1,254.5 1,078.6 1,074.6900.21,247.7

1,492.91,752.6 1,907.8 1,963.8

2005 2006 2007 2008 2009 1H10

Net debt Fleet value

BALANCE AT THE END OF THE PERIOD 2005 2006 2007 2008 2009 1H10

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

2.5x

1.8x

2.0x

55%

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

57%

2.3x

1.7x

1.9x

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

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

* annualized

43

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)

44

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

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-Nov

4-Jan

18-F

eb1-A

pr17

-May

29-Ju

n

Pric

e - R

$

0

20

40

60

80

100

120

140

160

180

200

Volume - R

$ thousand

RENT3 Vloume RENT3 IBOVESPA

447%

152%

RENT3 Performance

Average daily volume negotiated of R$13.3 million in 2Q10

Up to June 30th, 2010

2005 2006 2007 2008 2009

45

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.