1

Localiza Rent a Car S.A.

July, 2009

2Q09 and1H09 Results (R$ millions - USGAAP)

2

Car rental division

20,88821,55021,34120,83321,848

15,93712,842

9,4026,654

2004 2005 2006 2007 2008 1H08 1H09 2Q08 2Q09

CAGR: 34.6%-3.1%

140.8141.0

291.9278.6

585.7

442.7357.2

271.3197.1

2004 2005 2006 2007 2008 1H08 1H09 2Q08 2Q09

CAGR: 31.3%

-0.1%

4.8%

2.4%

Even on this unfavorable scenario, revenues have grown 4,8% on 1H09.

Net revenues (R$ millions)

Average rented fleet (quantity)

3

Fleet rental division

19,00516,987

19,39116,35217,880

14,29511,635

9,3087,796

2004 2005 2006 2007 2008 1H08 1H09 2Q08 2Q09

CAGR: 23.1%11.9%

76.266.0

152.1127.7

276.9

228.2190.2

149.2127.8

2004 2005 2006 2007 2008 1H08 1H09 2Q08 2Q09

CAGR: 21.3%

15.5%

19.1%

18.6%

The revenues increased due to higher volume and prices.

Net revenues (R$ millions)

Average rented fleet (quantity)

4

493.1690.0

930.3 1,060.91,335.3

700.3

152.3

475.7

136.1303.0

448.2590.3

853.2 983.2

491.7 413.1222.8 196.3

2004 2005 2006 2007 2008 1H08 1H09 2Q08 2Q09

Purchased cars Sold cars

Purchases (accessories included) Used car sales revenue

Tthe car rental division fleet is already adjusted.

241.8340.0

190.1

207.7352.1

252.9-60.2

208.6

-260.8

22,18226,105

33,52038,050

44,211

23,632

5,333

16,419

4,946

15,71518,763

23,174

30,09334,281

17,008 15,107

7,716 7,279

2004 2005 2006 2007 2008 1H08 1H09 2Q08 2Q09

7,34210,346

6,467

7,9579,930

8,703-2,333

6,624

-9,774

Fleet investment

Net Investment (R$ millions)

Quantity

5

72.8%76.2%

72.1%69.6%

1H08 1H09 2Q08 2Q09

24,103 31,373 35,686 39,112 39,314 30,5859,168

11,76214,630

17,79023,403 20,376

21,638

19,531

2004 2005 2006 2007 2008 1H08 1H09

CAGR: 21.5%

28,69935,865

46,00353,476

62,51559,690 52,223

-12.5%

2.5 p.p.3.4 p.p.

2009 utilization rate goal: minimum of 72%.

End of period fleet and utilization rates

Utilization rates – Car rental division

End of period fleet (quantity)

Car Rental Fleet Rental

6

9,402 12,842 15,937 21,848 20,833 21,341 21,550 20,8887,796 9,30811,635

14,29517,880 16,352 19,391 16,987 19,005

6,654

2004 2005 2006 2007 2008 1H08 1H09 2Q08 2Q09

3.5%

CAGR: 28.8%

14,450 18,71024,477

30,23239,728 38,537 39,893

9.5%

37,185 40,732

872.5411.1 449.6

209.5 220.2

303.0448.2

590.3

853.2983.2

491.7 413.1

222.8 196.3331.4 428.7 555.1 678.5

2004 2005 2006 2007 2008 1H08 1H09 2Q08 2Q09

-3.7%

CAGR: 30.8%

634.4876.9

1,145.4

1,531.71,855.7

432.3 416.5

-4.4%

902.8 862.7

5.1%9.4%

Net revenue - ConsolidatedAverage Rented fleet (quantity)

Rentals Used car sales

Net revenues (R$ millions)

Car rental Fleet rental

7

161.0218.8

284.4357.1

449.6

211.4 219.8110.4 107.5

36.559.1

26.9

46.4

54.5

33.0 4.7

13.2 1.6

2004 2005 2006 2007 2008 1H08 1H09 2Q08 2Q09

48.8%52.7%48.9%51.4%51.5%52.6%51.2%51.0%48.6%Rentals - Consolidated

1.1%

67.1%

39.4%

1H09

6.7%

64.3%

45.5%

1H08

5.5%

67.0%

44.3%

2008

4.6%

69.1%

42.0%

2006

5.9%

66.4%

46.2%

2Q08

5.4%

68.7%

44.5%

2007

0.8%13.2%12.0%Used car sales

68.8%62.3%63.4%Fleet Rental

37.9%45.3%40.1%Car Rental

2Q0920052004Divisions

CAGR: 26.4%

277.9

197.5

403.5

504.1

311.3 -11.7%

123.6 109.1

Seminovos EBITDA margin reflects the current market conditions.

-8.1%

244.4 224.5

-2.6%4.0%

EBITDA margin

EBITDA consolidated (R$ millions)

Car Rental Used car sales

8

2,169.62,599.7

322.9 492.3

2,546.0

332.9939.1

2004 2005 2006 2007 2008 1H09 2Q09

3,794.74,557.6

1,845.5

2,981.3

5,083.1

2,395.82,383.3

2004 2005 2006 2007 2008 1H09 2Q09

annualized

Depreciation rate is adjusted to the current market conditions.

Depreciation per car

Car rental division (R$)

Fleet rental division (R$)

annualized

9

27.153.657.3

107.190.6

106.5138.2

190.2

127.4

2004 2005 2006 2007 2008 1H08 1H09 2Q08 2Q09

107.1

(45.7)

(52.7)

(8.5)

(30.4)

244.4

33.0

211.4

1H08

57.3

(21.0)

(65.5)

(10.7)

(70.0)

224.5

4.7

219.8

1H09

(49.8)

24.7

(12.8)

(2.2)

(39.6)

(19.9)

(28.3)

8.4

Var. R$

(14.5)109.1123.6EBITDA Consolidated

(26.5)

12.7

(2.1)

(1.0)

(21.6)

(11.6)

(2.9)

Var. R$

27.153.6Net income

(9.7)(22.4)Income tax and social contribution

(26.8)(24.7)Financial expenses, net

(5.4)(4.4)Other depreciation

(40.1)(18.5)Depreciation of revenue-earning vehicles

1.6 13.2 EBITDA - Used car sales

107.5110.4 EBITDA - Car rental and fleet rental

2Q092Q08Reconciliation of EBITDA x Net Income

- 49.4%

Main impacts on results: increase of depreciation and drop of the Seminovos EBITDA.

- 46.5%

Net Income - ConsolidatedNet Income (R$ millions)

10

52.0 58.2118.2

250.7205.7

107.4

504.6

81.7

222.7

2004 2005 2006 2007 2008 1H08 1H09 2Q08 2Q09

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

(27.4)

61.5

(196.3)

107.4

(9.2)

(12.3)

(504.0)

491.7

128.9

(19.1)

(38.9)

186.9

434.2

(491.7)

244.4

1H08

504.6

-

-

504.6

(4.4)

359.2

(152.3)

413.1

149.8

(18.8)

(26.9)

195.5

384.1

(413.1)

224.5

1H09

(283.1)

(188.9)

(299.9)

205.7

(39.9)

(52.2)

(1,035.4)

983.2

297.8

(44.8)

(52.8)

395.4

874.5

(983.2)

504.1

2008

(22.2) 53.2 (161.3) (113.7)Free cash flow

(51.0) 222.0 (25.5) (21.9) Change in amounts payable to car suppliers (capex)

(221.9) (287.0) (194.0) (143.8)Capex of car – growth

250.7 118.2 58.2 52.0 Free cash flow before growth

(23.7) (32.7) (28.0) (10.2)Capex - Property and equipment, net

14.2 (53.0) (47.8) (46.3)Net capex for renewal

(839.0) (643.3) (496.0) (349.3) Capex of car – renewal

853.2 590.3 448.2 303.0 Used car sales revenues

260.2 203.9 134.0 108.5 Cash provided before capex

13.3 (4.8) (24.2) 6.2 Working capital variation

(63.4) (42.7) (32.7) (40.9) (-) Income tax and social contribution – current

310.3 251.4 190.9 143.2 EBITDA without used car sales revenues and costs

760.0 530.4 361.2 248.7 Cost of used car sales

(853.2) (590.3) (448.2) (303.0) Used car sales revenues

403.5 311.3 277.9 197.5 EBITDA

2007200620052004Free cash flow - R$ millions

369.

8%

172.6%

Free cash flow before growth (R$ millions)

Free cash flow - FCF

11

-45.5-22.4

504.6

-1,254.5-817.8

Var. (R$)20092008

1,013.6

185.2

1,198.8

Mar/09

-436.7

260.6

-176.1

Dec/Jun

1,208.31,384.41,352.0Gross debt (principal + interest)

390.5129.9151.0(-) Cash

1,254.5

Dec/08

817.8

Jun/09

1,201.0Net debt

Sep/08R$ millions

Net debt was reduced in R$436.7 million.

Net debt reconciliation

InterestInterest on capital

Net Debt 12/31/2008

Net Debt 06/30/2009

Free Cash Flow

12

Net debt Fleet value

281.3535.8 440.4

765.1

1,254.5

817.8612.2

900.2

1,247.71,492.9

1,752.61,437.5

2004 2005 2006 2007 2008 1H09

2.0x

1.8x

2.5x

72%

2008

1.2x1.3x0.7x1.4x1.0xNet debt / Equity (USGAAP)

1.3x(*)1.3x1.0x1.5x1.1xNet debt / EBITDA (BRGAAP)

1.8x(*)1.9x1.4x1.9x1.4xNet debt / EBITDA (USGAAP)

57%51%36%60%46%Net debt /Fleet value (USGAAP)

1H092007200620052004End of period balances

Indebtedness ratios have improved significantly on 1H09 over 2008.

Net debt x Fleet value

(R$ millions)

(*) annualized

13

The current cash is enough to pay the debt with maturity on the 1H2010.

335.9

110.0 109.666.8

520.4

0.4

2009 2010 2011 2012 2013 2014

390.5

Cash

1HR$350.0

2H R$170.4

Debt profile

Debt profile(Principal – R$ millions)

14

829.7729.5 687.5 648.7 670.9

2005 2006 2007 2008 2009

4.6

10.613.5

8.46.9

2005 2006 2007 2008 2009

RENT3 X IBOVESPA

0

5

10

15

20

25

0

20

40

60

80

100

120

140

160

180

200

RENT3 Volume RENT3 IBOVESPA

RENT3 Performance

216%

113%

RENT3 was included on the Market Vectors Brazil Small-caps Index of Van Eck (USA).

Average daily trade volume (R$ millions) Average daily trading (# shares)

15

Cash generation of R$ 504.6 million

Net debt reduction of R$ 436.7 million

Highlights

Financials:

The strong cash generation was the strategy adopted by the Company to make even stronger the financial solidity on a low liquidity scenario.

16

Fleet adjustment with the reduction of 13,708 cars since the beginning of crisis

Utilization rate

Restart of fleet renewal*

Highlights

Fleet:

* IPI reduction was extended up to September/09 with a gradual return starting in October/09

76.2% on 2Q09

72,1% on 1H09

17

Differentiated, liquid and flexible asset

Even on an unfavorable scenario, Localiza sold 21,753 cars with a drop of only 3.3% on average prices compared to the prices before crisis when we had high demand.

Sales expenses went from 5.4% to 8.2% in the same period.

21,753

15,107

6,646

Sale

-13,7088,045Total

26,8509,7745,3331H09

27,8803,9342,7124Q08

Average sale price

Net salePurchase

Localiza’s business model, through an integrated platform, unique in the car rental industry, allows managing our differentiated asset, that are liquid and flexible, to quickly adapt the Company to macroeconomic conditions.

18

83117

145178

199 204

2004 2005 2006 2007 2008 1H09

+ 34

# of corporate branches

13 13

2632 35 38

2004 2005 2006 2007 2008 1H09

# of used car sales stores

+ 28+ 33 + 21

+ 5

Highlights

Increase of the number of rental locations and stores

Distribution:

+ 13+ 6

+ 3+ 3

19

Car rental division:

Fleet renewal Reduction on the expenses

Minimum utilization rate of 72% on 2009

2H09 perspectives

Fleet rental division:

Increase the average rental rate for new contracts and renewals

Debt:

Contract debt only to extend the amortization term

Drop on the net financial expenses due to decrease of interest rate

of maintenance

of depreciation

20

(4 ,0 )

4 ,0

1 2 ,0

2 0 ,0

2 8 ,0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009e-9

9

2 7

4 5

6 3

Localiza's fleet GDP Interest rate

Source: BACEN, Focus and Localiza

Macroeconomic scenario after Real Plan of 1994

-22.8% = 4.8X GDP15.2% = 8.0X GDP10.1% = 3.2X GDPFleet growth (CAGR)

5.2%9.0%10.8%22.0%Average Interest Rate

-0.5%4.7%1.9%3.1%Average GDP

Free floating exchange rateFixed exchange rate

2008 Subprime

crisis

1997 Asian

crisis

1998 Russian

crisis1973: 1º Oil Crash

1979: 2º Oil Crash

1987: NYSE Crash

1990: Collor plan

1994 Mexico

crisis

2002 Lula’s

election

2001 Argentina

crisis

2009 Liquidity

Crisis

1995 Creation of PROER

2000 NASDAQ

crash

2010 perspectives

For 2010 the market expectation is 3.5% GDP growth and 4.5% real interest rate.

21

Thank you!