1October, 2012

2

1. Company overview

2. Main business divisions

� Car rental

� Fleet rental

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Brazil – Macroeconomic scenario

� Earnings release 3Q12

Agenda

3

Company: milestones

1973 1982 1983 20041990 2005 2011

Phase I – Rise to #1

1973 – Founded in Belo Horizonte/MG

Late 70’s - Acquisitions in the Northeast of Brazil

1981 – Brazilian car rental leader in # of branches

Phase II – Expansion

1984 – Expansion strategy by adjacencies: Franchising

1991 – Expansion strategy by adjacencies: Seminovos

1997 – PE firm DL&J enters at a market cap of US$ 150 mm

1997 – Expansion strategy by adjacencies: Fleet rental

Phase III – Reaching Scale

2005 – IPO: market cap of US$ 295 mm

2011 – Rated as investment grade by Moody’s, Fitch and more recently S&P

2012 – ADR level I

08/30/2012 – Market cap pf US$3.6 biwith ADTV of R$34.9 million

4

Company: integrated business platform

This integrated business platform gives Localiza flexibility and superior performance.

Synergies:

bargaining power

cost reduction

cross selling

� 13,982 cars

� 202 locations in Brazil

� 49 locations in South America

� 33 employees

� 67.4% sold to final consumer

� 73 stores

� 1,032 employees

� 61,303 cars

� 3.1 million clients

� 262 locations

� 4,228 employees

� 32,027 cars

� 716 clients

� 349 employees

Based on the 3Q12

5

Company: Business platform divisions

Car rental

Localiza car rental rents to individuals or businesses at airports and other locations.

The traditional backbone of Localiza. With its giant fleet that gets renewed annually, it lays the foundation for all scale effects captured by the group as a whole.

Fleet management

Total Fleet, offering customized fleet for terms of 2-3 years.

Total Fleet is seen as an additional business that generates value by leveraging synergies created by the integrated platform approach.

Used car sales

Support area, with the objective to sell the Company’s used cars and add know-how in buying cars and to estimate the residual value.

As a support business activity, Seminovos enables the sell 70% of used cars directly to the final customer, thereby maximizing the residual value of used rental cars.

Franchising

Supplementary business, with the purpose to expand the brand’s network.

Franchising is seen as a primarily strategic business by management – the revenues generated are low, however brand and network expand at minimum capital expenditure.

6

Total

per year

R$ % R$ % R$

Net Revenues 19,1 100,0% 29,2 100,0% 48,3

Cost s (7,4) -38,7% - 0,0% (7,4)

SG&A (2,7) -14,1% (2,8) -9,6% (5,5)

Net car sale revenue 26,4 90,4% 26,4

Book value of car sale (25,7) -90,0% (25,7)

EBITDA 9,0 47,2% 0,7 2,4% 9,7

Depreciation (vehicle) (2,0) -6,8% (2,0)

Depreciation (non-vehicle) (0,3) -1,6% (0,3)

Interest on debt (2,4) -8,2% (2,4)

Tax (2,7) -14,2% 1,1 3,8% (1,6)

NET INCOME 6,0 31,5% (2,6) -8,9% 3,4

NOPAT 5,2

ROIC 18,9%

Cost of debt after tax (CDI+1,5%) 8,6%

Fleet Rental Seminovos

per operating car per operating car

$27.5Car acquisition

Net car sale revenue

$26.4

1 2 3 4 5 8 9 10 11 12

1 - year cycle

Expenses, interest and tax

Revenue

Financial cycle

Spread10,3p.p.

2011

7

Total

per year

R$ % R$ % R$

Net Revenues 16,3 100,0% 28,6 100,0% 44,9

Costs (4,2) -25,8% - 0,0% (4,2)

SG&A (0,9) -5,5% (2,3) -8,0% (3,2)

Net car sale revenue 26,3 92,0% 26,3

Book value of car sale (24,9) -90,0% (24,9)

EBITDA 11,2 68,7% 1,4 4,9% 12,6

Depreciation (vehicle) (4,2) -14,7% (4,2)

Depreciation (non-vehicle) (0,1) -0,6% (0,1)

Interest on debt (2,0) -7,0% (2,0)

Tax (3,4) -20,6% 1,4 5,0% (1,9)

NET INCOME 7,7 47,5% (3,4) -11,7% 4,4

NOPAT 5,8

ROIC 16,1%

Cost of debt after tax (CDI+1,5%) 8,6%

Fleet Rental Seminovos

per operating car per operating car

$36.1Car acquisition

Net car sale revenue

$26.3

1 2 3 4 5 20 21 22 23 24Expenses, interest and tax

Revenue

Financial cycle

Spread7,5p.p.

2011

2 - year cycle

8

Rental revenues evolution

594.0 692.7 819.3 943.21,156.6 1,168.4

1,483.51,720.9

2004 2005 2006 2007 2008 2009 2010 2011

3,841.6 3,876.7 3,995.7 4,265.2 4,668.0 4,827.75,412.0 5,690.0

2004 2005 2006 2007 2008 2009 2010 2011

CAGR: 16.4%

CAGR: 5.8%

Localiza’s rental revenues at constant prices

Sector’s revenue at constant prices

In 2011 the Company grew 5,9x GDP and sector 1,9x.

16.0%

5.1%

CAGR:4.0%

GDP 2.7%7.5%-0.3%5.2%6.1%4.0%3.2%5.7%

9

Spread

8.5

8.60%

17.1%

0.59x

28.9%

2,445.3

2011

9.6

7.33%

16.9%

0.59x

28.6%

1,984.6

2010

8.2

8.84%

17.0%

0.53x

32.1%*

1,642.3

2008

4.0

7.59%

11.5%

0.53x

21.9%

1,702.3

2009

9.012.97.8Spread (ROIC – Interest after tax) - p.p.

6.67%8.40%10.90%Interest on debt after tax

15.7%21.3%18.7%ROIC

0.62x0.58x0.55xTurnover of average capital investment(over rental net revenues)

25.3%*36.9%34.5%NOPAT Margin(over rental net revenues)

2,613.21,137.5 986.2 Average capital investment - R$ million

9M12 a20072006

10.90%8.40% 8.84% 7.59% 7.33% 8.60%

6.67%

18.70%21.25%

17.03%

11.54%

16.94% 17.12% 15.70%

2006 2007 2008 2009 2010 2011 9M12

annualized

Cost of debt after tax ROIC

7.8p.p. 12.9p.p.8.2p.p.

4.0p.p.9.6p.p. 8.5p.p.

9.0p.p.

(*) 2008 and 2012 NOPAT were calculated excluding additional fleet depreciation that was treated as equity loss since they were extraordinary non-recurring events caused by external factors (IPI reduction for new cars), following the concepts recommended by Stern Stewart.

10

Raising money

Renting cars Selling carsBuying

cars

Cash to renew the fleet or pay debt

$

$

Profitability comes from rental divisions

Competitive advantages: 39 years of experience in managing assets

11

Competitive advantages: raising money

Global Scale

National Scale

Localiza raises money with lower spreads when compared to Brazilian competitors.

As of September, 2012.

Renting carsRaisingmoney

Sellingcars

Buyingcars

BBB- FitchBaa3 Moody’s

BBB- S&PBBB+ S&P B+ S&P B+ Fitch B2 Moody's

brA- S&P A- (bra) Fitch

brAAA S&P Aa1.br Moody’sAA+(bra) Fitch

A (bra) FitchbrA S&P

A- (bra) Fitch

12

Localiza Unidas Locamerica

59,950

15,34111,052 Fiat

39.3%GM

21.0%

Renault

9.9%Ford

11.0%

Others

1.3%

VW

17.5%

Competitive advantages: buying cars

Better conditions due to higher volumes

Localiza purchased 2.3% of the national production from the main automakers in 2011 .

Localiza - Purchases by brand in 2011

Renting carsRaisingmoney

Buyingcars

Sellingcars

Number of cars purchased - 2011

13

The Company is present in 213 cities where the other largest networks do not operate.

Competitive advantages: renting cars

Know HowBrand Brazilian distribution

120

107

62

# o

f b

ran

ch

es

# o

f cit

ies

452

289

Localiza Hertz Unidas Avis

Source: Brand Analytics and each company website (May, 2012)

Renting carsRaisingmoney

Buyingcars

Sellingcars

318

71 6032

14

Sales to final consumer

Competitive advantages: selling cars

Buffer: additional fleet

Selling directly to final consumer cutting the intermediaries reduces our depreciation.

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

Renting carsRaisingmoney

Buyingcars

Sellingcars

15

1. Company overview

2. Main business divisions

� Car rental

� Fleet rental

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Brazil – Macroeconomic scenario

� Earnings release 3Q12

Agenda

16

Car rental overview

Financial performance

428.0585.2

980.7

-5 0 0 .0 0

-3 0 0 .0 0

-1 0 0 .0 0

1 0 0 .0 0

3 0 0 .0 0

5 0 0 .0 0

7 0 0 .0 0

9 0 0 .0 0

1 ,1 0 0 .0 0

2007 2009 2011-1 0 .0 %

4 0 .0 %

9 0 .0 %

Car rental net revenues EBITDA margin (%)

*Source: each company website (May, 2012)

CAGR: 23.0%

46.0% 41.9%46.9%

63.1%Compact cars

Fleet composition – 64,688 cars

36.9%Others

Corporate fleet size

Satisfaction survey

96.0% 95.3% 95.9%

2007 2009 2011

35,68647,517

64,688

2007 2009 2011

17

71 6032

Distribution

Source: Each company’s website as of May, 2012.

Localiza holds an extraordinarily strong position in the Brazilian market, as over decades it has been successfully competing against major global players through local scale.

279 312 346 381 415 449 452 464

254

2005 2006 2007 2008 2009 2010 2011 1H12 9M12

Car rental distribution (Brazil)

120

107

62

# of branches # of cities

452

289

Localiza Hertz Unidas Avis

318

18Source: ABLA (Brazilian Car Rental Association) and each company’s website (May, 2012)

Off-airport market is still fragmented.

Airport locations Off-airport locations

Car rental locations in Brazil

Others

36Avis

35

Unidas

34

Localiza

101

Hertz

42

Avis

27

Unidas

73

Localiza

351 Hertz

78

Others

2079

Market share

36.5%

Car Rental market share - Brazil

(# of cars)

19

Main competitors

• Weak footprint in Brazil• Master franchisee in Brazil in

“Chapter 11”• Used car sales retail network

• International brand• Local expertise

27

35

3.1%

• International brand• Local expertise

• Capitalized by three Private Equity funds

• Local expertiseStrengths

Weaknesses

Off-airport locations

Airport locations

Market share (2010)*

• Weak footprint in Brazil• Used car sales retail network

78

42

2.8%

• Weak footprint• Relatively weak brand• Unclear priorities between

rental and fleet business• Used car sales retail

network

73

34

6.7%

*Source: Roland Berger report, as of June 21, 2012, based on 2010 figures

20

Drivers

71

128154

179

2003 2009 2010 2011

80.3%20.3% 16.2%

Air traffic passengers - million

GDP per capita

(R$ thousands)

6.9 7.5 8.4 9.510.7 11.7 12.8

14.216.0 16.6

19.0 21.3

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

151

260

465510

545

645

240180 200

350

415380

300

18% 16% 15% 13%

31%

35%

15%

37%38%

51%

22% 20%

27%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e

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

Car rental affordability

Investments in Brazil

679

343

182

85 83 107

Oil/

gas

Trans

port

atio

n

Energy

Wat

er/s

ewag

e

Indus

try

Oth

ers

21

1. Company overview

2. Main business divisions

� Car rental

� Fleet rental

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Brazil – Macroeconomic scenario

� Earnings release 3Q12

Agenda

22

Number of clients

Fleet rental overview

Financial performance

219.8303.2

455.0

0 .0 0

5 0 .0 0

1 0 0 .0 0

1 5 0 .0 0

2 0 0 .0 0

2 5 0 .0 0

3 0 0 .0 0

3 5 0 .0 0

4 0 0 .0 0

4 5 0 .0 0

5 0 0 .0 0

2007 2009 2011

5 0 .0 %

1 0 0 .0 %

Fleet rental net revenues EBITDA margin (%)

CAGR: 19.0%

71.3% 68.7% 68.6%

42.6%Compact cars

Fleet composition

57.4%Others

456

584687

2007 2009 2011

93.0%99.0%98.0%

Users VIP Users Contract

managers

Satisfaction survey

23Source: ABLA and Datamonitor

Less than 50% of targeted fleet is rented.

Outsourced fleet penetration

Corporate fleet:4,200,000

Targeted fleet:500,000

Rented fleet:245,000

31,629

Brazilian Market World

5.4%8.9%

13.3%16.5%

24.5%

37.4%

46.9%

58.3%

Bra

zil

Poland

Cze

ch R

epublic

Ger

man

y

France

Spain Uk

Holla

nd

Drivers

24

13.9%

Fleet Rental division - Brazil

(# of cars)

Source: based on ABLA 2012 yearbook

The business greatly profits from synergies with its car rental affiliate, and as the Brazilian economy matures, one can expect a higher percentage of companies to take advantage of fleet rental.

Market share

25

Main competitors

• Loss making in the last six years (competing on price in the pursuit of market share)

• Used car sales retail network

• Capitalized• Synergies with its rental car

business area

16,418

204.7

7.1%

• Brazil’s second player• Successful IPO 04/2012

Strengths

Weaknesses

Fleet size

Revenues (R$ million)

Market share*

• Low profitability (competing on price in the pursuit of market share)

• Depreciation calculus• Used car sales retail network

27,262

272.5

9.5%

*Source: Roland Berger report, as of June 21, 2012, based on 2011 figures.

26

1. Company overview

2. Main business divisions

� Car rental

� Fleet rental

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Brazil – Macroeconomic scenario

� Earnings release 3Q12

Agenda

27Source: Fenabrave 2011

Localiza launched Seminovos in 1993, a brand new concept featuring younger cars.

Combining the Localiza brand with a growing network of stores

enables the firm to continuously sell thousands of cars at market prices.

# of points of sale

Car sales – operating data

32 35

4955

6673

26

2006 2007 2008 2009 2010 2011 9M12

+7

28

8.0 7.9

7.4

6.9

6.5

5.9

5.5

2005 2006 2007 2008 2009 2010 2011

Income increase and credit availability are the major drivers for car sales.

Source: O Estado de São Paulo, as of 04/15/12 (based on researches of Sindipeças, Roland Berger and PWC).

Used car sales drivers: affordability and penetration

# of inhabitants per car (2011) # of inhabitants per car - Brazil

5.5

4.2

4.0

3.6

2.1

2.0

1.9

1.8

1.3

Brazil

Argentina

Russia

South Korea

Japan

France

Germany

United Kingdon

USA

29

7.9

8.9

11.9

15.8

17.4

1.82.3

2.73.0 3.3 3.5

6.8

5.6

7.0

8.98.4

7.17.37.1

6.7

1.6

Brazilian car market: new x used car market and affordability

Source: FENABRAVE (Autos + light commercial) and Bradesco

New cars4.4x

Individuals with affordability to buy a new car*

Used cars

3.7x 3.1x2.7x

2.4x2.5x 2.6x

2005 2006 2007 2008 2009 2010 2011

Used car market is currently 2.6x the new car market.

* Population with affordability to buy a new compact car (R$25,000) with 20% downpayment

30

2011 Up to 2 years2011 Up to 2 years

476,827476,827

2011 Brand news2011 Brand news

3,425,4993,425,499

2011 Used cars2011 Used cars8,862,9518,862,951

Used car sales net revenues Cars sold

850.5 922.4

1,468.1

-1 0 0 .0 0

1 0 0 .0 0

3 0 0 .0 0

5 0 0 .0 0

7 0 0 .0 0

9 0 0 .0 0

1 ,1 0 0 .0 0

1 ,3 0 0 .0 0

1 ,5 0 0 .0 0

1 ,7 0 0 .0 0

2007 2009 2011

0.6% 1.5% 10.6%

30,09334,519

50,772

0 .0 0

1 0 ,0 0 0 .0 0

2 0 ,0 0 0 .0 0

3 0 ,0 0 0 .0 0

4 0 ,0 0 0 .0 0

5 0 ,0 0 0 .0 0

6 0 ,0 0 0 .0 0

2007 2009 2011

Car sales – operating data

31

• 71 (Fenauto)• 45,600 (Fenauto)• 29*• 3,714 (Anfavea)Points of sale

• No brand recognition (lower reputation market)

• Financing options with higher interest rates

• Often appeal to lower income classes, with older cars

• Occasionally specialized in niches

• Retailers• “Loja do carro”

• Stigma about heavy usage during rental car years

• Weak retail network• Geographical

concentration (SP)• Lower media presence

• Tailored to popular customer demand at purchase, hence likely to be an attractive value proposition when for sale

• Rental operators• Locamerica, Hertz

• Comfort and convenience

• Variety of models and brands

• Flexibility in exchange

• Brand and perceived image/ experience

• Support often directly from the OEM’s

• Flexibility in trade-in cars• Strong media presence

Strengths

Weaknesses

Examples

• Lower media presence

• Cars often older than 2 years

• It hasn’t been successful

• “Auto malls” and “Cidade do automóvel”

• Used cars not a core business

• Cars often older than 2 years

• Dealers• Fiat, VW, Ford, GM most

successful• Auto Brasil

Main players

*Based on the main companies reports and websites.

32

Customers recognize our quality and recommend it!

94.0%92.3%94.0%

2009 2010 2011

Source: based on phone interviews made by the Company with customers started in 2009

2011 - Would you recommend Seminovos? YES!

94.0%

Satisfaction survey

33

1. Company overview

2. Main business divisions

� Car rental

� Fleet rental

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Brazil – Macroeconomic scenario

� Earnings release 3Q12

Agenda

34

38%57%

5%

2011 Consolidated overview

34%16%

50%

Revenues: R$2,918.1 million EBITDA: R$821.3 million

35

Consolidated net revenuesR$ million

Rental revenues grew 13.6% in the quarter. Seminovos revenues were impacted by the IPI reduction.

537,4 655,0 842,9 898,51.175,3

1.450,01.057,4 1.213,9

362,9 412,3

588,8850,5

980,8 922,4

1.321,91.088,0

1.157,3

394,6 394,7

1.468,1

2006 2007 2008 2009 2010 2011 9M11 9M12 3Q11 3Q12

Rental Seminovos

CAGR: 21.0%

1,126.2

1,505.5

1,823.72,145.4

2,371.2

2,918.1

757.5 807.0

10.5%

6.5%

13.6%14.8%

1,820.9

2,497.2

36

Consolidated EBITDA R$ million

EBITDA margin was impacted by the increase in properties rentals and personnel expenses.

2.6%

50.7%

66.7%

43.5%

2010

3.1%

51.1%*

67.0%*

43.8%*

9M11

4.2%

49.4%

66.3%

41.1%

9M12

2.8%

51.2%*

66.8%*

43.9%*

2011

5.6%

51.2%

67.5%

43.5%

2008

49.5%53.1%*49.3%53.6%52.4%Rental Consolidated

4.9%

66.7%

40.7%

3Q12

1.9%

68.3%*

45.7%*

3Q11

1.1%

67.5%

39.8%

2009

4.6%

70.7%

42.7%

2006

5.5%

70.3%

45.0%

2007

Used Car Sales

Fleet Rental

Car Rental

Divisions

*It considers not only the adjustment of the accessories but also the reversal of the non-recurring provisions of R$10.6 million in 3Q11.

223.7216.2

649.3603.0

821.3

649.5469.7504.1

403.5311.3

2006 2007 2008 2009 2010 2011 9M11 9M12 3Q11 3Q12

3.5%

CAGR: 21.4%7.7%

Proforma EBITDA margin for rental divisions:

37

Average depreciation per carin R$

1,683.90

4,647.40

3,084.40

939.10

332.90

1,536.00

2,577.002,546.00

2006 2007 2008 2009 2010 2011 9M12 3Q12* Annualized

* *

Hot used car market

Financial crisis effect

Reflex of the IPI reduction

4,133.00

5,549.30 5,831.20

2,383.30 2,395.80

3,509.704,371.70

5,083.10

2006 2007 2008 2009 2010 2011 9M12 3Q12 * Annualized* *

Hot used car market

Financial crisis effect

Reflex of the IPI reduction

38

Breakdown of the car depreciationin R$

Car rental

* Annualized depreciation of the cars purchased after the IPI reduction.

Average depreciation per car of the cars purchased after the IPI reduction is in line with previous years’ depreciation.

1,199.90 1,304.80

4,050.80

1,213.80

2010 2011 3Q12 3Q12*

1,536.00 1,683.90

Cars’ average depreciation Accessories’ average depreciation

*

Cars purchased after the IPI reduction

Cars purchased before the IPI reduction

39

Additional depreciation as a result of the IPI reduction R$ million

63,439 3,385 11,087 17,831 31,136 180.5 (*) 56.0 124.5 24.5 100.0 Consolidated

100.0%12.6%40.9%36.4%10.1%100.0%69.8%30.2%6.9%23.3%

26,810 3,381 10,954 9,772 2,703 64.5 (*) 45.0 19.5 4.5 15.0 Fleet rental

100.0%0.0%0.4%22.0%77.6%100.0%9.5%90.5%17.2%73.3%

36,629 4 133

8,059 28,433 116.0 (*) 11.0 105.0 20.0 85.0 Car rental

After 3Q12 Subtotal 3Q12 2Q12 Total 2015 2014 2013 2012 Total

Estimated Accounted

Cars by year of maturity of estimated useful life (quantity)Additional depreciation

Division

90.5% of the additional depreciation in car rental division was already accounted.

Fleet as of Sep/12

40

Consolidated net incomeR$ million

Excluding the additional depreciation of R$24.5 million, deduced of the income tax, 3Q12 net income would have reached R$87.6 million.

212.9

(91.4)

(137.8)

(17.4)

(143.5)

603.0

9M11

154.8

(52.6)

(108.2)

(23.9)

(309.8)

649.3

9M12

(58.1)

38.8

29.6

(6.5)

(166.3)

46.3

Var. R$

-27.3%

-42.5%

-21.5%

37.4%

115.9%

7.7%

Var. %

(3.9)

5.2

19.4

(3.4)

(32.6)

7.5

Var. R$

41.1

(23.6)

(48.9)

(3.0)

(55.2)

171.8

Var. R$

291.6

(125.1)

(179.0)

(24.1)

(201.5)

821.3

2011

16.4%

23.3%

37.6%

14.2%

37.7%

26.5%

Var. %

116.3

(47.2)

(112.9)

(21.0)

(172.3)

469.7

2009

250.5

(101.5)

(130.1)

(21.1)

(146.3)

649.5

2010

-5.2%

-16.1%

-39.0%

68.0%

60.5%

3.5%

Var. %

71.475.3Net income

(27.0)(32.2)Income tax and social contribution

(30.4)(49.8)Financial expenses, net

(8.4)(5.0)Other property and equipament depreciation

(86.5)(53.9)Cars depreciation

223.7216.2Consolidated EBITDA

3Q123Q11Reconciliation EBITDA x net income

71.475.3

154.8

212.9

291.6250.5

116.3127.4

190.2

138.2

2006 2007 2008 2009 2010 2011 9M11 9M12 3Q11 3Q12

16.4%

-5.2%

-27.3%

41

SWOT Analysis: Localiza business platform

• Unrivaled local scale

• Strong footprint in Brazil’s extreme traffic locations

• Vertical integration, creating synergies for all four businesses

• Strong business operating performance and experienced leadership

Strengths

Opportunities

Weaknesses

Threats

•Increase in market share through further consolidation of Brazilian rental car market

•Underdeveloped fleet outsorcing in Brazil

•Upcoming mega events in Brazil

•Positive outlook for Brazilian business and tourism

•Any measures of the Brazilian government which impact car sales prices, potentially lowering asset value (e.g. new car sales tax)

•New competitors entering the market (rental car or fleet management)

•Increasing fuel price

• Strong focus on airport locations

• Renewal of airport concessions costly

• Dependence on passengers travelling by air (growth limited by Brazilian infrastructure)

• Weak footprint outside of Brazil, resulting in exposure to national economic development

• Dependence on long-term capital to finance renewal of fleet

According to Roland Berger report as of June 21, 2012

Localiza’s brand is top of mind in Brazil.

Localiza doesn’t see it as a weakness or a threat

42

1. Company overview

2. Main business divisions

� Car rental

� Fleet rental

� Seminovos

3. Consolidated

4. Debt and cash

5. Appendix

� Brazil – Macroeconomic scenario

� Earnings release 3Q12

Agenda

4343

Free cash flow - FCF

(*) Without technical discount deduction up to 2010 (see item 17 – Glossary, page 23)

(24.3)(36.4)(48.2)(25.5)(54.6)11.5 (54.5)Net capex for renewal

(2,121)9,17818,6498,6429,9307,95710,346Fleet increase – quantity

(148.8)(239.3)(429.0)0.0(488.8)(272.9)(65.0)Net capex for fleet growth

(206.0)32.7111.3241.1(188.9)(51.0)222.0 Change in accounts payable to car suppliers (capex)

40,75950,77247,28534,51934,28130,09323,174Fleet renewal - quantity

Free cash flow - R$ million 2006 2007 2008 2009 2010 2011 9M12

EBITDA 311.3 403.5 504.1 469.7 649.5 821.3 649.3

Used car sales net revenues (588.8) (850.5) (980.8) (922.4) (1,321.9) (1,468.1) (1,157.3)

Depreciated cost of used car sales (*) 530.4 760.0 874.5 855.1 1,203.2 1,328.6 1,038.3

(-) Income tax and social contribution (42.7) (63.4) (52.8) (49.0) (57.8) (83.0) (77.7)

Working capital variation (4.8) 13.3 (44.8) (11.5) 54.5 (83.9) 0.4

Cash provided before capex 205.4 262.9 300.2 341.9 527.5 514.9 453.0

Used car sales net revenues 588.8 850.5 980.8 922.4 1,321.9 1,468.1 1,100.1

Capex of car - renewal (643.3) (839.0) (1,035.4) (947.9) (1,370.1) (1,504.5) (1,124.4)

Capex – other property and equipment (32.7) (23.7) (39.9) (21.0) (51.1) (63.0) (64.2)

Free cash flow before growth 118.2 250.7 205.7 295.4 428.2 415.5 364.5

Capex of car for fleet (growth) reduction (287.0) (221.9) (299.9) (241.1) (540.3) (272.0) 57.2

Free cash flow after growth 53.2 (22.2) (283.1) 295.4 (0.8) 176.2 215.7

44

Debt profileR$ million

Debt profile as of 09/30/2012- principal

The Company is still presenting strong cash position and comfortable debt profile.

The “all in” debt cost was CDI + 107 bps.

52.0

176.0 220.8 192.1

562.0432.0

26.012.7

2012 2013 2014 2015 2016 2017 2018 2019Cash

429.4

45

Debt - ratios

Net debt x Fleet value

4.6x

1.2x

1.7x

51%

2011 (**)

6.0x 5.0x 4.2x 3.8x 5.4x 4.8x EBITDA / Net financial expenses

1.4x

2.0x

52%

2010

1.5x

2.3x

57%

2009

2.0x

2.5x

72%

2008

1.1x1.3x0.7xNet debt / Equity

1.5x1.9x1.4xNet debt / EBITDA (*)

54%51%36%Net debt / Fleet value

UntilSep/12(**)20072006END OF PERIOD BALANCE

(*) annualized(**) From January 1st 2011, consider financial statements in IFRS

440.4765.1

1,254.51,078.6

1,281.1 1,363.4 1,326.11,247.71,492.9

1,752.61,907.8

2,446.7 2,681.7 2,447.1

2006 2007 2008 2009 2010 2011 Until set/12

Net debt Fleet value

Comfortable debt ratios.

46

IR Team

Disclaimer

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 any underwriters we may appoint in connection with an offering of securities in future. 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 hereinshall form the basis of any contract or commitment whatsoever.

Nora LanariRoberto Mendes Silvio Guerra

CFO - RI RI RI

Website: www.localiza.com/ir E-mail: ri@localiza.com Phone: 55 31 3247-7024