1

Localiza Rent a Car S.A.3Q10 Results - R$ million, USGAAP

October / 2010

growth and profitability

2

Integrated business platform

This integrated business platform gives Localiza flexibility and superior performance.

Synergies:bargaining powercost reductioncross selling

10,596 cars172 locations in Brazil70 locations in South America29 employees

Capacity to sell 50,000 cars/year74.9% sold to final consumer48 stores668 employees

50,450 cars2.2 million clients224 locations3,088 employees

25,305 cars645 clients254 employees

3

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 NOPAT 4.7 ROIC 17.5%Cost of debt after tax 7.8%

Car Rental Seminovosper operating car per operating car

Car rental financial cycle

Car sale revenue$26.8

$26.6Car acquisition

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

1-year cycle

Revenue

$2.1SG&A

Spread9.7p.p.

4

Fleet rental financial cycle

Total2 year

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

NOPAT 10.3 ROIC 15.2%Cost of debt after tax 7.8%

Fleet Rental Seminovosper operating car per operating car

Spread7.4p.p.

33.8Car acquisition

Net car sale revenue 28.8

1 2 3 4 5 20 21 22 23 24

2-year cycle

Expenses, interest and tax

Revenue

$2.2SG&A

5

Funding

Equity

Debt

Managing assets

Flexible and liquid assets.

Cash to renew the fleet

Assets (cash)

Profitability comes fromrental divisions

Pricing strategyConsumer price(-) Operating costs(-) Depreciation(-) Taxes(-) Interest= Spread

Ass

ets

(car

s)

6

InvestmentsIndustry – R$ 549bn Infrastructure – R$ 310bnConstruction – R$ 465bn World cup / Olympics – R$ 102bn

Growth opportunities

ConsolidationUS market: 4 players 95% BR market: 4 players 45% 1.951 players 55%

Income / ConsumptionAir traffic 2010: +27% up to Aug/10 Credit cards: 48 mm holders as of Sep/10Income growth:

Middle class in Brazil 2009 – 98MM

OutsourcingCorporate fleet : 2MM carsTargeted market 500,000 cars

25,305 cars

Source: Auto Rental News and Company’s estimates

Source: Company’s estimatesSource: BNDES 2010-2013, Santander Equity Market

Source: Gol, Tam, Abecs and Company’s estimates

Strong drivers of growth.

7

Investments 2010-2013: R$1.3 trillion

+ 55%

Source: BNDES – Visão do Desenvolvimento Report, number 81.

R$

billi

on

Industry314

Industry549

Infrastructure199

Infrastructure310

Construction343

Construction465

2005-2008 2010-2013

R$856

R$1,324

Growth opportunities: Infrastructure

53.4%

8.6%

6.3%

23.2%

3.3%

Southeast: 53.4%Northeast: 23.3%South: 8.6%North: 6.3%Midwest: 3.3%

Source: Brasil Econômico Journal as of October 15-17, 2010.

Strong investments programmed for the next years.

8

Source: Infraero, Gol, Abecs and Exame magazine (Jul/2010)Source: website Portal Brasil and Bradesco (Macroeconomic scenario)

Growth opportunities: Income and Consumption

ConsumptionMiddle class (million)

6698

113

2003 2009 2014e

The growth of middle class is impacting in the consumption.

48.5%

15.3%

# of passenger (million)

71128 150

2003 2009 2010a

Credit card holder (millions)

15

45 51

2003 2009 2010e

80.3%17.2%

200.0%13.3%

Unemployment rate (%)

11.5 12.3 11.59.9 10.0 9.3

7.9 8.16.9 6.9

2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

151

260

465510

240180 200

350415380

300

18% 16%

31%

35%

15%

37%38%

51%

22% 20%27%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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

Rent a Car Affordability

9

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

Rental revenues accumulated growth rate – rentals

2005 2006 2007 2008 2009

GDP Localiza Sector

5.9x

Localiza

GDP

Sector 3.1x

10

Others1951

Unidas74

Localiza303

Hertz74

Avis42

Airport locations Off-airport locations

Brazilian car rental agencies

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

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

Localiza93

Unidas29

Hertz29

Avis29

Others30

*

Growth opportunities: Consolidation

11

37 years of experience…

Raising money

Buyingcars

Renting cars

Selling cars

Competitive advantages

…gives Localiza know-how and superior performance in all links of the business process

12

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 brATam

brAA-Duke EnergybrAACEMIG

brA+Cyrela Brazil RealtybrAA+Braskem S.AbrAA-Localiza Rent a Car S.A

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

Rating

Localiza raises money with lower spreads.

13

Competitive advantages in buying cars

Raising money

Buyingcars

Renting cars

Selling cars

* Includes Localiza, Total Fleet and Franchisees purchases in 2009.

Localiza2.3%

Localiza’ share in national sales ofGM, FIAT, VW and Renault

GM44%

FIAT33%

VW16%

Others1%

RENAULT6%

Purchases by brand

Localiza purchases cars with better prices and conditions.

14

Competitive advantages in renting cars

Raising money

Buyingcars

Renting cars

Selling cars

Strong brand Geographical footprint

103

103

71

Localiza Unidas Hertz Avis

396

277

DistributionLocations in Brazil

Source: each company website as of 09/30/2010

15

Competitive advantages: network footprint

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

Maceio International Airport Branch - AL - Brazil Uberaba International Airport Branch - MG - Brazil

Curitiba International Airport - PR - Brazil Ribeirão Preto Off-airport Branch – SP - Brazil

16

Competitive advantages in used car sales

Raising money

Buyingcars

Rentingcars

Sellingcars

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.

Selling directly to final consumer reduces depreciation.

Footprint

48 stores

17

Competitive advantages: used car sales network

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

Shopping Portal Store in Belo Horizonte - MG - BrazilFrancisco Morato Store - SP - Brazil

Curitiba Store - PR - BrazilSorocaba Store - SP - Brazil

18

Competitive advantages: additional fleet

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

Francisco Morato Store - SP - BrazilCuritiba International Airport Branch- PR - Brazil

19

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

Localiza has a very lean and efficient structure.

The succession process is already planned.

20

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

21

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

Localiza reached a virtuous circle

22

Results

23

42 62 85.2134.3 154 149.9 152.1

197.8278.1 311.4

403.5504.1 469.7 461.3

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 9M10

212.9 234.3 244.7 310.1 420.4 476.9 532 634.4876.9

1145.4

1531.71855.7 1856.3 1813.1

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 9M10

CAGR: 16.5%

CAGR: 30.8%

Net revenues consolidated

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 7.5

Average 1.9 4.4 -0.2 7.5

Results: growth with profitability

CAGR: 26.3%

CAGR: 23.9%

EBITDA consolidated

24

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 2010 yearbook

Fleet

30.4% 13.2%

Results: market share

Car Rental division Fleet Rental division

25

Elected twice the best company in corporate governance (Capital Aberto Magazine)

Corporate governance

Recognitions & Awards

Elected the best IR Company, TOP3 best CEO, TOP3 best IR and TOP3 best CFO in the aerospace, transportation and industrial sectors(Institutional Investor Ranking, October 2010)

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

47th most valuable brand in Brazil among listed companies (Brand Analytics, May 2010)

Among 500 largest companies in Latin America (America Economia Magazine, July 2010)

Market recognition of Localiza’s distinction towards excellence.

26

Financials3Q10

27

3Q10 Highlights

Record over record.

R$ millions 3Q09 3Q10 Variation

Consolidated net revenue 442.5 673.6 52.2%

Net rental revenues 230.0 318.0 38.3%

EBITDA 116.3 178.7 53.7%

Net income 20.6 74.9 263.6%

Net income / Net rental revenues 9.0% 23.6% 14.6p.p.

Record

Record

Record

Record

Quantity 3Q09 3Q10 Variation

Sold cars 8,077 12,859 59.2%

End of period fleet 63,138 75,755 20.0%

Car rental utilization rate 67.6% 74.1% 6.5p.p.

Fleet rental utilization rate 95.4% 97.9% 2.5p.p.

Record

Record

28

Car Rental Division

New records of volumes and revenues in each quarter.

Net revenue (R$ million)

591.1

440.8

607.8585.7

442.7357.2

271.3

2005 2006 2007 2008 2009 9M09 9M10

CAGR: 29.2%3.8%

34.1%

151.1 140.8 148.9181.4 191.6 218.2

1Q 2Q 3Q

2009 2010

20.1% 46.5%36.1%

# daily rentals (thousand)

3,4114,668

5,793

7,940 8,062

5,8277,720

2005 2006 2007 2008 2009 9M09 9M10

CAGR: 32.5%1.5%

32.5%

1,952 1,889 1,9862,369 2,488 2,863

1Q 2Q 3Q2009 2010

21.4% 44.2%31.7%

29

Fleet Rental Division

Net revenue (R$ million)

149.2190.2 228.2

276.9 313.4230.9

270.1

2005 2006 2007 2008 2009 9M09 9M10

CAGR: 22.9% 13.2%17.0%

75.9 76.2 78.784.4 89.1 96.6

1Q 2Q 3Q2009 2010

11.2% 22.7%16.9%

# daily rentals (thousand)

3,3514,188

5,1446,437

7,099

5,249 5,862

2005 2006 2007 2008 2009 9M09 9M10

CAGR: 24.3%10.3%

11.7%

1,7801,710 1,758

1,890 1,9262,046

1Q 2Q 3Q

2009 2010

6.2% 16.4%12.6%

New records of volumes and revenues in each quarter.

30

7,828 7,279 8,07710,948 10,679

12,859

1Q 2Q 3Q2009 2010

18,76323,174

30,093 34,281 34,519

23,184

34,486

2005 2006 2007 2008 2009 9M09 9M10

Used car sales

The average number of cars sold outpaced 4.2 thousand cars per month in the 3Q10.

# of sold cars

CAGR: 22.3%48.7%

0.7%

39.9% 46.7% 59.2%

# of sold cars

31

End of period fleet and utilization rate

68.6% 76.2%66.2% 69.9% 74.1%67.6% 64.5%

9.411.6

9.67.3 6.9 6.6 6.3

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 %

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Utilization rate average age of the fleet

Utilization rate and average age of the fleet – Car rental

End of period fleet (quantity)

Car rental Fleet rental

31,373 35,686 39,112 47,517 41,091 50,45011,762 14,630 17,790 23,403 22,778 22,04725,305

24,103

2005 2006 2007 2008 2009 9M09 9M10

CAGR: 20.3%

35,86546,003 53,476

62,515

12.4%

70,29563,138 75,755

20.0%

Record

32

Consolidated net revenuesR$ million

876.91,145.4

1,531.71,855.7 1,856.3

1,305.2

1,813.1

2005 2006 2007 2008 2009 9M09 9M10

CAGR: 28.4%38.9%

Record26.4%

Quarterly evolution

38.2% 52.2%

Consistent revenues growth in each quarter.

446.1 416.5 442.5563.9 575.6

673.6

1Q 2Q 3Q2009 2010

33

277.9 311.3403.5

504.1 469.7340.9

461.3

116.3178.7

2005 2006 2007 2008 2009 9M09 9M10 3Q09 3Q10

- 6.8%

EBITDAR$ million

Divisions 2005 2006 2007 2008 2009 9M09 9M10

39.3%

66.7%

48.7%

1.6%

44.3% 44.0%

64.9%

50.5%

67.0%

51.5%

2.3%5.5%

3Q09 3Q10

46.6%

66.3%

Rental consolidated 51.0% 51.2% 52.6% 49.3% 48.4% 52.5%

3.3%

39.2%

65.9%

2.4%

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%

EBITDA margins have grown in all divisions in the 3Q10.

53.7%

35.3%

Record

34

Average depreciation per carR$

Car Rental

Significant drop in the average depreciation per car.

Fleet Rental

-24.4%

-37.1%

annualized

annualized

1,619.8

332.9

2,546.0 2,577.0

939.1492.3

2005 2006 2007 2008 2009 9M10

3,306.02,981.3 2,383.3

4,371.75,083.1

2,395.8

2005 2006 2007 2008 2009 9M10

35

Net incomeR$ million

74.9

20.6

181.1

78.0106.5

138.2

190.2

127.4 116.3

2005 2006 2007 2008 2009 9M09 9M10 3Q09 3Q10

The strategies adopted resulted in a substantial improvement of the net income.

Record263.6

%132.2

%

Net income per division 2008 2009 Var. – R$ 9M09 9M10 Var. – R$ 3Q10

53.9

19.8

1.2

74.9

23.6%

126.8

50.4

3.9

181.1

20.8%

Franchising 4.3 4.0 (0.3) 3.3 0.6 0.9 0.3

Consolidated 127.4 116.3 (11.1) 78.0 103.1 20.6 54.3

83.9

18.6

9.3p.p.

42.9

31.8

11.5%

3Q09Var. –R$

42.3

11.7

14.6p.p.

11.6

8.1

9.0%

67.2

45.1

12.5%

(29.0)

18.2

‐2.1p.p.

Car rental 96.2

Fleet rental 26.9

Margin over rental revenue 14.6%

* Used cars losses are allocated in the rental divisions

36

Free cash flow - FCF

Free cash flow - R$ million 2005 2006 2007 2008 2009 9M10277.9 461.3

(942.6)

859.4

378.1

(35.5)

12.5

355.1

942.6

(1,011.0)

-

(68.4)

(32.5)

254.2(179.4)

(21.1)

53.7

Fleet increase (quantity) 7,166 10,138 7,473 9,039 7,780 5,460

(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

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 and interestCapex of car – growth

Change in amounts payable to car suppliers (capex)

Free cash flow after growth and before interest

Even with the addition of 5,460 cars the Company generated R$53.7 million of free cash in the 9M10.

(*) without technical discount deduction

37

Net debt reconciliationR$ million

Net debt grew 8.0%, in line with the increase of 7.8% in fleet.

-1,165.0-1,078.6

(115.5)Interest

(24.6)Dividends

FCF53.7 Net debt

09/30/2010Net debt

12/31/2009

38

Debt – profile and costsR$ million

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 + 1.5%pa - - 58.0 78.0 55.0 75.0 190.0

-

74.0

-

-

264.0

Cash and equivalents - - - - - - - - (321.9)

-

264.0

456.0

Debenture 2nd Issuance CDI + 0.6%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 + 2.0%pa - - 100.0 100.0 100.0 100.0 400.0

BNDES TJLP + 3.8%pa / CDI +2.3%pa 0.6 2.6 2.1 1.0 - - 6.3

Total gross debt – principal 0.6 2.6 250.7 269.6 284.8 238.0 1,432.3

122.0

Interests accrued - - - - - - 54.6

Total net debt 0.6 2.6 250.7 269.6 284.8 238.0 1,165.0

0.6 2.6

250.7 269.6 284.8238.0 264.0

122.0

2010 2011 2012 2013 2014 2015 2016 2017

321.9Cash

Cash to support short term growth.

Comfortable debt profile.

39

Debt – ratiosR$ million

Indebtedness ratios are very comfortable.

Net debt Fleet value

BALANCE AT THE END OF THE PERIOD 2005 2006 2007 2008 2009 9M10

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 1.4x

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

* annualized

535.8 440.4765.1

1,254.5 1,078.6 1,165.0900.2

1,247.71,492.9

1,752.6 1,907.8 2,117.9

2005 2006 2007 2008 2009 9M10

40

Spread

2005 2006 2007 2008 2009

Average investment capital R$ millions 606.3 986.2 1,137.5 1,642.3

32.1%

0.53x

17.0%

8.2%

8.8

1,931.4

NOPAT margin (over rental revenue) 35.2% 33.4% 35.6%

1,702.3

21.1%

0.55x

11.5%

7.8%

27.7%

Turnover of average investment capital (over rental revenue) 0.71x 0.56x 0.60x 0.60x

ROIC 24.8% 18.7% 21.3% 16.7%

Interest after tax 13.6% 10.9% 8.4% 7.8%

Spread (ROIC – Interest after tax) - p.p 11.2 7.8 12.9 3.7 8.9

9M10 annualized

13.6%10.9%

8.4% 8.2% 7.8% 7.8%

16.7%

11.5%

24.8%18.7%

21.3%17.0%

2005 2006 2007 2008 2009 9M10 annualized

Interest after tax ROIC

11.27.8 12.9

8.8 3.78.9

The spread returned to previous levels.

41

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.