1

Localiza Rent a Car S.A.4Q10 and 2010 Financial Results - R$ million, USGAAP

February/2011

2

1.Business Platform2.Growth Opportunities3.Competitive Advantages4.Long Term Results5.4Q10 Financials6.Summary

3

Integrated business platform

This integrated business platform gives Localiza flexibility and superior performance.

Synergies:bargaining powercost reductioncross selling

10,652 cars181 locations in Brazil61 locations in South America29 employees

Capacity to sell 50,000 cars/year75,2% sold to final consumer55 stores706 employees

61,445 cars2.3 million clients234 locations3,529 employees

26,615 cars669 clients269 employees

4

Car rental financial cycle

Car sale revenue$27.9

$26.6Car acquisition

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

1-year cycle

Revenue

$2.3SG&A

Spread9.8p.p.

Total1 year

R$ % R$ % R$Revenues 19.5 100.0% 27.9 100.0% 47.4 Cost (8.2) -42.2% (8.2) SG&A (2.8) -14.5% (2.3) -8.4% (5.2) Net car sale revenue 25.5 91.6% 25.5 Book value of car sale (24.7) -90.0% (24.7)

EBITDA 8.5 43.4% 0.8 2.9% 9.3 Depreciation (vehicle) (1.5) -5.5% (1.5) Depreciation (non-vehicle) (0.4) -1.8% (0.1) (0.5) Interest on debt (2.0) -7.2% (2.0) Tax (2.4) -12.1% 0.7 2.5% (1.6)

NET INCOME 5.8 29.5% (2.2) -7.7% 3.6 NOPAT 5.1 ROIC 17.7%Cost of debt after tax 7.9%

Car Rental Seminovosper operating car per operating car

*

* Investment in cars and PP&E (8%)

5

Total2 anos

R$ % R$ % R$Revenues 32.7 100.0% 29.0 100.0% 61.7 Cost (9.4) -28.9% (9.4) SG&A (1.8) -5.6% (2.2) -7.7% (4.1) Net car sale revenue 26.8 92.3% 26.8 Book value of car sale (26.5) -90.0% (26.5)

EBITDA 21.4 65.6% 0.3 1.0% 21.7 Depreciation (vehicle) (7.0) -24.2% (7.0) Depreciation (non-vehicle) (0.1) -0.2% (0.1) Interest on debt (3.8) -12.9% (3.8) Tax (6.2) -19.0% 3.1 10.8% (3.1)

NET INCOME 15.2 46.4% (7.3) -25.3% 7.8

NET INCOME per year 7.6 46.4% (3.7) -25.3% 3.9 NOPAT (annualized) 5.1 ROIC 15.2%Cost of debt after tax 7.9%

Fleet Rental Seminovosper operating car per operating car

33.8Car acquisition

Net car sale revenue 29.0

1 2 3 4 5 20 21 22 23 24

2-year cycle

Expenses, interest and tax

Revenue

Fleet rental financial cycle

$2.2SG&A

Spread7.3p.p.

6

Funding

Equity

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)

Debt

7

1.Business Platform2.Growth Opportunities3.Competitive Advantages4.Long Term Results5.4Q10 Financials6.Summary

8

Growth opportunities

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

GDP: Income / Consumption

Source: Auto Rental News and Company’s estimates

Strong drivers of growth.

OutsourcingCorporate fleet : 2MM carsTargeted market 500,000 cars

26,615 cars

Source: The Boston Consulting Group as of November, 2010

GDP: Investments

9

Industry206

Industry339

Infrastructure210

Construction196

Construction337

Infrastructure131

2006-2009 2011-2014

Investments 2011-2014: R$886 billion

+ 66%

Source: BNDES 2010-2014, Ernani Torres (Deputy Director)

R$

billi

on

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.

R$533

R$886

10

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

Growth opportunities: Income and Consumption

Consumption (million)

Middle class

6698

113

2003 2009 2014e

The growth of middle class is impacting in the consumption.

48.5%

15.3%

# of air traffic passengers

71128

154

2003 2009 2010

Credit card holder

15

45 51

2003 2009 2010

80.3%20.3%

200.0%13.3%

Unemployment rate (%)

11,5 12,3 11,59,9 10,0 9,3

7,9 8,16,7

2002 2003 2004 2005 2006 2007 2008 2009 2010

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

11

148128 115

97 104 9380

755668 58

151 180 200 240 260 300350

510

380

415 465

0

2 0

4 0

6 0

8 0

1 00

1 2 0

1 4 0

1 6 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

1 00

2 00

3 00

4 00

5 00

6 00

Number of minimum wages needed to buy a new car Monthly minimum

Growth opportunities: Income and Consumption

The growth of middle class is impacting also in the car market.

Affordability – Car market

595

565

496

461

457

188

147

136

18

8

0 100 200 300 400 500 600 700

Italy

Germany

France

USA

England

Russia

Mexico

Brazil

China

India

# of cars per 1,000 inhabitants

Source: Exame Magazine: Automotive News, World Bank, China Association of Automobile Manufacrures and companies

Source: Exame Magazine: Automotive News, World Bank, China Association of Automobile Manufacrures and companies

12

2005 2006 2007 2008 2009

GDP Localiza Sector

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

5.5x

Localiza

GDP

Sector

3.1x

13

Airport locations Off-airport locations

Brazilian car rental agencies

*Source: ABLA, 2009Source: Each company website as of January , 2011

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

*

Growth opportunities: Consolidation

Localiza97

Unidas23

Hertz31

Avis29

Others30

Others1950

Hertz80

Localiza318 Unidas

72

Avis37

14

1.Business Platform2.Growth Opportunities3.Competitive Advantages4.Long Term Results5.4Q10 Financials6.Summary

15

38 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

16

Competitive advantages in Raising Money

Raising money

Buyingcars

Renting cars

Selling cars

Moody’s corporate rating as of Dec/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

Fitch as of Dec/10 (Local Currency - National)

Localiza Rent a Car S.A AA (bra)B2W S.A A (bra)CEMIG AA (bra)

Dasa A+ (bra)Julio Simões A- (bra)

Tam BBB+ (brA)

As an investment grade, Localiza raises money with lower spreads.

Localiza is rated Investment Grade

17

2.8%

Competitive advantages in buying cars

Raising money

Buyingcars

Renting cars

Selling cars

* Includes Localiza, Total Fleet and Franchisees purchases in 2010.

Localiza’ share in national sales of the three largest automakers: GM, FIAT, VW

Purchases by brand

Localiza purchases cars with better prices and conditions.

Fiat25.6%GM

37.0%

Renault3.1%

Ford4.3% Others

2.8%

VW27.2%

18

Competitive advantages in renting cars

Raising money

Buyingcars

Renting cars

Selling cars

Strong brand Geographical footprint

95

111

66

Localiza Unidas Hertz Avis

415

272

DistributionLocations in Brazil

Source: Each company website as of January , 2011

19

Competitive advantages: network footprint

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

Shuttle Service Uberaba International Airport Branch - MG - Brazil

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

20

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

55 stores

21

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

Belo Horizonte Store - MG - BrazilSorocaba Store - SP - Brazil

22

Competitive advantages: additional fleet

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

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

23

Salim Mattar – 38y

Eugênio Mattar – 38y

Roberto Mendes – 26y

Gina Rafael – 30y

Daltro Leite – 26y

Marco Antônio Guimarães – 21y

Bruno Andrade – 19y

BOARD OF DIRECTORS

CEO

COO

Car Acquisition

Legal

Financial ITHuman Resources Administration

Helvia Barcelos – 24y

Competitive advantages: stable management

Localiza has a very lean and efficient structure.

The succession process is already planned.

24

1.Business Platform2.Growth Opportunities3.Competitive Advantages4.Long Term Results5.4Q10 Financials6.Summary

25

42 62 85.2 134.3 154 149.9 152.1 197.8278.1 311.4

403.5504.1 469.7

649.5

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

212.9 234.3 244.7 310.1 420.4 476.9 532 634.4876.9

1145.41531.7

1855.7 1856.3

2551.3

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

CAGR: 16.5%

CAGR: 26.1%

Net revenues consolidated

GDP 3.4 0.0 0.3 4.3 1.3 2.7 1.1 5.7 3.2 4.0 6.1 5.2 -0.6 7.5

4.4Average 1.9

Results: growth with profitability

CAGR: 21.9%

CAGR: 23.9%

EBITDA consolidated

26

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

27

1.Business Platform2.Growth Opportunities3.Competitive Advantages4.Long Term Results5.4Q10 Financials6.Summary

28

4Q10 and 2010 Highlights

Localiza continues presenting a superior performance.

R$ millions 2009 2010

2,551.3

1,225.3

649.5

250.5

20.4%

1,856.3

931.8

469.7

116.3

12.5%

Var. 4QT09 4Q10 Var.

Consolidated net revenue 37.4%

31.5%

38.3%

115.4%

7.9p.p.

551.1 738.2 34.0%

Net rental revenues 252.2 354.8 40.7%

EBITDA 128.9 188.3 46.1%

Net income 38.4 69.4 80.7%

Net income / Net rental revenues 15.2% 19.6% 4.4p.p.

Quantity 2009 201088,060

69.1%

47,285

70,295

68.8%

34,519

Var. 4Q09 4QT10 Var.End of period fleet 25.3%

0.3p.p.

37.0%

70,295 88,060 25.3%

Utilizatin rate – Car rental 64.5% 66.3%

Cars sold

1.8p.p.

11,335 12,799 12.9%

29

838.0607.8585.7

442.7357.2271.3

2005 2006 2007 2008 2009 2010

CAGR: 25.3%

151.1 140.8 148.9 167.0181.4 191.6 218.2 246.9

1Q 2Q 3Q 4Q

2009 2010

20.1% 46.5%36.1%

3,4114,668

5,7938,062

10,734

7,940

2005 2006 2007 2008 2009 2010

CAGR: 25.8%

1,952 1,889 1,986 2,2362,369 2,4882,863 3,015

1Q 2Q 3Q 4Q

2009 2010

21.4% 44.2%31.7%

33.1%

34.9%

47.8%

37.9%

Car Rental Division

Car Rental Division presented a strong growth in volume with daily rental rates increase.

Net revenue (R$ million)

# daily rentals (thousand)

30

149.2190.2 228.2

276.9 313.4374.5

2005 2006 2007 2008 2009 2010

CAGR: 20.2%

75.9 76.2 78.7 82.584.4 89.1 96.6 104.4

1Q 2Q 3Q 4Q

2009 2010

11.2% 22.7%16.9%

3,3514,188

5,1446,437 7,099

8,044

2005 2006 2007 2008 2009 2010

CAGR: 19.1%

1,780 1,710 1,758 1,8501,890 1,926 2,046 2,182

1Q 2Q 3Q 4Q

2009 2010

6.2% 16.4%12.6%

13.3%

17.9%

26.5%

19.5%

Fleet Rental Division

# daily rentals (thousand)

Net revenue (R$ million)

Fleet Rental Division had also presented strong growth.

31

Used car sales

Considering the Company’s growth perspective and the needs of fleet renewal,Seminovos network is being expanded to sell a larger volume of used cars.

# of sold cars

7,828 7,279 8,07711,33510,948 10,679

12,859 12,799

1Q 2Q 3Q 4Q

2009 2010

18,763 23,17430,093 34,281 34,519

47,285

2005 2006 2007 2008 2009 2010

CAGR: 20,3%

39.9%46.7% 59.2%37.0%

12.9%

# of stores

1326

32 35

49 55

2005 2006 2007 2008 2009 2010

+ 13 + 6 + 3 +14+6

32

31,373 35,686 39,112 47,517 61,44511,76214,630 17,790 23,403

22,77826,615

24,103

2005 2006 2007 2008 2009 2010

CAGR: 19.7%

35,86546,003 53,476

62,515 70,29588,060

25.3%

End of period fleet

Car rental Fleet rental

17,765 cars were added to the fleet in 2010.

33

446.1 416.5 442.5 551.1563.9 575.6 673.6 738.2

1Q 2Q 3Q 4Q

2009 2010

876.91,145.4

1,531.71,855.7 1,856.3

2,551.3

2005 2006 2007 2008 2009 2010

CAGR: 23.8%

26.4%38.2% 52.2%

34.0%

37.4%

Consolidated net revenuesR$ million

Quarterly evolution

In 2010, consolidated net revenue had the highest growth since the IPO.

34

EBITDA R$ million

Divisions 2005 2006 2007 2008 2009 2010

43.4%

65.6%

50.2%

2.6%

44.3%

67.0%

51.5%

5.5%

4Q09 4Q10

41.8%

67.2%

Rentals consolidated 51.0% 51.2% 52.6% 49.3% 50.6% 49.4%

3.4%

43.0%

65.9%

0.4%

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%

Consistent EBITDA margins.

277.9 311.3403.5

504.1 469.7

649.5

128.9 188.3

2005 2006 2007 2008 2009 2010 4Q09 4Q10

CAGR: 18.5%

38.3%46.1%

In 2010, EBITDA growth was also the highest since the IPO.

35

Average depreciation per carR$

1,536.0

332.9

2,546.0 2,577.0

939.1492.3

2005 2006 2007 2008 2009 2010

Car rental

3,509.72,981.3

2,383.3

4,371.75,083.1

2,395.8

2005 2006 2007 2008 2009 2010

Fleet rental

-40.4%

-19.7%

Depreciation presented a significant drop in 2010.

Warm used car market

Financial crisis reflectionNormal market

conditions

36

69.438.4

250.5

116.3127.4190.2

138.2106.5

2005 2006 2007 2008 2009 2010 4Q09 4Q10

Consolidated net incomeR$ million

The strategies adopted by the Company resulted in a substantial increase of net income.

80.7%

Net income per division (*) 2005 2006 2007 2008 2009 2010 4Q09 4Q10

77.3

27.1

2.1

106.5

24.8%

74.6 17.9

61.7

1.9

42.8149.2

138.2

19.4

119.6

Franchising 4.3 4.0

68.0

2.6

24.9

190.2

1.1

95.6

5.7

250.5

1.7

24.9% 28.0%

69.4

20.4%

Consolidated 127.4 116.3 38.4

19.6%15.2%

52.2

60.1

12.5%

Car rental 96.2

Fleet rental 26.9

Margin over rental revenue 14.6%

* Used cars sales result is allocated in the rental divisions

115.4

%

37

Free cash flow - FCF

45.0% increase in cash generation before growth and interest.

Free cash flow - R$ millions 2005 2006 2007 2008 2009 2010

469.7 649.5

(1,326.0)

1,203.2

(57.8)

54.5

523.4

1,326.0

(1,370.1)

-

(44.1)

(51.1)

428.2

(540.3)

111.3

(0.8)

Fleet increase (quantity) 7,342 10,346 7,957 9,930 8,642 18,649

(924.5)

855.1

(49.0)

(11.5)

339.8

924.5

(963.1)

15.2

(23.4)

(21.0)

295.4

(241.1)

241.1

295.4

504.1

(983.2)

874.5

(52.8)

(44.8)

297.8

983.2

(1,035.4)

-

(52.2)

(39.9)

205.7

(299.9)

(188.9)

(283.1)

EBITDA 277.9 311.3 403.5

Used car sales revenues (448.2) (590.3) (853.2)

Cost of used car sales (*) 361.2 530.4 760.0

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

Working capital variation (24.2) (4.8) 13.3

Cash provided before capex 134.0 203.9 260.2

Used car sales revenues 448.2 590.3 853.2

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

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

Net capex for renewal (47.8) (53.0) 14.2

Capex - Property and equipment, net (28.0) (32.7) (23.7)

Free cash flow before growth and interest 58.2 118.2 250.7 Capex of car – growth (194.0) (287.0) (221.9)

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

Free cash flow before interest (161.3) 53.2 (22.2)

(*) without technical discount deduction

38

Net debt grew 18.8% or R$202.5 million that were invested in the fleet expansion.

Net debt reconciliationR$ million

-1,281.1(166.8)Interest

(34.9)Dividends

Net debt12/31/2010

FCF before growth428.2

-1,078.6

Net debt12/31/2009

(429.0)Investment in fleet increase

39

Debt – profile and costsR$ million

Debt amortization profile has improved substantially.

269.6122.0

284.8 238.0 264.0250.7202.6

2010 2011 2012 2013 2014 2015 2016 2017

Cost 2010 2011 2012 2013 2014 2015 2016 2017 Total

Working capital 111.1% to115.0% of CDI and CDI + 1.5%pa -

-

-

-

-

-

Interests accrued until 12/31/2010, net of interest paid - 65.1 - - - - - - - 65.1

- 58.0 78.0 55.0 75.0

(415.7)

(350.6)

456.0

Debenture 2nd Issuance CDI + 0.6%pa - 66.6 66.6 66.8 -

-190.0

-

74.0

-

Commercial Papers 5th Issuance 108.0% of CDI 200.0 - - - - - - 200.0

Cash and equivalents on 12/31/2010 - - - - - - - (415.7)

200.0

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

-

-

122.0

-

-

370.0

Debenture 1st Issuance: Total Fleet CDI + 2.0%pa - 100.0 100.0 100.0 100.0 400.0

Other TJLP + 3.8%pa / CDI + 2.3%pa 2.6 2.1 1.0 - - 5.7

264.0 122.0 Net debt - 202.6 250.7 269.6 284.8 238.0 1,281.1

415.7Cash

40

Debt – ratiosR$ million

Indebtedness ratios improved even further in 2010.

535.8 440.4765.1

1,254.5 1,078.6 1,281.1900.2

1,247.7 1,492.9 1,752.6 1,907.82,446.7

2005 2006 2007 2008 2009 2010

Net debt Fleet value

BALANCES AT THE END OF THE PERIOD 2005 2006 2007 2008 2009 2010

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

2.5x

2.0x

52%

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

57%

2.3x 2.0x

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

41

Spread

Localiza continues presenting an exceptional performance.

2005 2006 2007 2008 2009

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

32.1%

0.53x

17.0%

8.2%

8.8

1,984.6

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

1,702.3

21.1%

0.55x

11.5%

7.8%

27.4%

Turnover of average capital investment (over rental revenue) 0.71x 0.56x 0.60x 0.62x

ROIC 24.8% 18.7% 21.3% 16.9%

Interest on debt 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 9.1

2010

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

Interest on debt after tax ROIC

11.27.8 12.9

8.8 3.79.1

42

1.Business Platform2.Growth Opportunities3.Competitive Advantages4.Long Term Results5.4Q10 Financials6.Summary

43

Highercompetitiveness

Market shareincrease

Gains of scale

Localiza has an integrated business platform and a flexible model

The drivers lead to a strong growth

The competitive advantages giveLocaliza a superior performance

Strong growth with profitability: Localiza has been doubling sizeevery 3 years

High levels of corporate governance

Localiza reached a virtuous circle

44

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.