Localiza Rent a Car S.A. 1Q14 Results

R$ million

April 16, 2014

70.8% 66.8% 66.6%72.2%

2012 2013 1Q13 1Q14

2

Highlights

Strong cash generation in the quarter.

283.2 311.3

1Q13 1Q14

Net revenues –

Car Rental Division

R$

millio

n

217.2 249.1

1Q13 1Q14

Consolidated EBITDA

R$

millio

n

429.5 459.3

363.8485.8

1Q13 1Q14

Car Rental Used car sales

Consolidated net revenues

R$

millio

n

945.1 793.3

88.8 105.8

1Q13 1Q14

Consolidated net income

R$

millio

n

ROIC Cost of deb after taxes

Spread ROIC minus cost of debt after taxes

6.0%7.6%

16.5%18.9%

2013 1Q14

11.3p.p. 10.5p.p.

Utilization rate–

Car Rental Division

3

Net Revenues (R$ million)

# Daily Rentals (thousands)

Car Rental division

Car rental daily volumes grew 10.1% in 1Q14.

5,793 7,940 8,062

10,734 12,794

13,749 14,242

3,426 3,773

2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14

428.0 565.2

585.2 802.2

980.71,093.7 1,163.5

283.2 311.3

2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14

178 199 214 234 247 272 286301

134147

167181

202202 193 176

6976

7161

4750 63 63

2007 2008 2009 2010 2011 2012 2013 1Q14

4

Car Rental network evolution

15 new owned rental locations were added in 1Q14.

# of car rental locations (Brazil and abroad)

Localiza´s branches - Brazil Franchisees´ branches - Brazil Franchisses´ branches - abroad

381 422

452 476 496 524

542 540

+15

219.8 268.4 303.2 361.1

455.0 535.7

575.9

141.8 143.2

2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14

5,144 6,437 7,099

8,044 9,603 10,601 10,844

2,742 2,623

2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14

5

Net Revenues (R$ million)

# Daily Rentals (thousands)

Fleet Rental division

The increase of 5.7% in the average rental rate offset the decrease of 4.3% in daily rental volumes.

-4.3%

1,060.9 1,335.3 1,204.2

1,910.4 1,776.5 1,618.8 2,026.2

341.5 317.1

850.5 980.8 922.4 1,321.9 1,468.1 1,520.0 1,747.3

363.8 485.8

2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14

6

Net investment

Fleet Expansion* (quantity)

Fleet reduction by 6,569 cars in 1Q14 allowed fleet optimization after summer vacations.

Net Investment (R$ million)

38,050 44,211 43,161

65,934 59,950 58,655

69,744

12,349 10,880

30,093 34,281 34,519

47,285 50,772 56,644 62,641

12,934 17,449

2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14

7,957 9,930

8,642

9,178 2,011 7,103 18,649

(585) (6,569)

210.4

308.4 98.8

354.5 281.8 588.5 278.9

(22.3) (168.7)

Cars purchased Cars sold

Purchases (includes accessories) Used car sales net revenues

* It does not include theft / crashed cars.

7

Sales by quarter Quantity

The Company continues to present a strong sales pace of decommissioned cars.

# Number of cars sold

Result of the OEM’s delays in

delivering cars

13,28514,504 15,091

13,76412,934 13,669

18,039 17,999 17,449

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

8

Utilization rate evolution

Fleet optimization resulted in an increase of utilization rate

from 66.6% in 1Q13 to 72.2% in 1Q14.

70.7%67.9% 68.8% 69.1% 68.9%

70.8%

66.8% 66.6%

72.2%

2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14

9

End of period fleet Quantity

Productivity gains resulted in 10.1% volume growth in the Car Rental Division,

with only 0.9% increase in the end of period fleet.

35,686 39,112 47,517 61,445 64,688 65,086 70,717 64,043 64,642

17,790 23,403

22,778

26,615 31,629 32,104

32,809 32,212 32,009

2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14

53,476

Car Rental Fleet Rental

62,515 70,295

103,526 96,317

88,060 97,190 96,255 96,651

655.0 842.9 898.5 1,175.3 1,450.0 1,646.7 1,758.9

429.5 459.3

850.5 980.8 922.4

1,321.9 1,468.1

1,520.0 1,747.3

363.8 485.8

2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14

10

Consolidated net revenues R$ million

Consolidated net revenues increased 19.1% in 1Q14.

Car Rental Used car sales

1,505.5 1,823.7

2,918.1 3,506.2

793.3

1,820.9

2,497.2

3,166.7

945.1

11

Consolidated EBITDA R$ million

In the Car Rental Division, EBITDA margin was 40.2% in 1Q14, 4.6 p.p. above the same quarter of 2013.

403.5 504.1 469.7649.5

821.3 875.6 916.5

217.2 249.1

2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14

Divisions 2007* 2008* 2009* 2010* 2011* 2012 2013 1Q13 1Q14

Car Rental 46.0% 45.9% 41.9% 45.3% 46.9% 40.9% 36.8% 35.6% 40.2%

Fleet Rental 71.3% 69.1% 68.7% 68.0% 68.6% 66.4% 65.5% 65.9% 62.0%

Rental Consolidated 54.5% 53.3% 51.1% 52.3% 53.8% 49.3% 46.5% 45.8% 47.2%

Used Car Sales 5.5% 5.6% 1.1% 2.6% 2.8% 4.2% 5.7% 5.6% 6.6%

(*)Up to 2011, accessories and freight of new cars were recorded as permanent assets and depreciated over the cars’ useful life.

From 2012 on, such values have been accounted directly in the cost line, impacting EBITDA but reducing depreciation costs.

2,395.8

5,083.14,371.7

3,509.7 4,133.0

4,311.3

4,592.3 4,508.01,096.9

2007 2008 2009 2010 2011 2012 2013 1Q14

332.9

2,546.0 2,577.0

1,536.0 1,683.9

1,895.8

1,452.4 1,396.0

2007 2008 2009 2010 2011 2012 2013 1Q14

12

Average depreciation per car in R$

Robust used-car

market

Financial crisis and

IPI reduction effect

Robust

used-car market

Financial crisis and

IPI reduction effect

Depreciation Non recurring additional depreciation - IPI Effect

Depreciation Non recurring additional depreciation - IPI Effect

3,972.4

5,408.2

2,076.6

Average depreciation per car (R$) – Car Rental

Average depreciation per car (R$) – Fleet Rental

13

Consolidated net income R$ million

190.2

127.4 116.3

250.5291.6

240.9

384.3

88.8 105.8

2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14

* Pro forma 2012 net income excluding additional depreciation related to the IPI tax reduction, net of income tax.

336.3 *

Record

Productivity and efficiency gains contributed to reduce the impact of interest rates increases.

The Company reported record net income this quarter.

14

Free cash flow - FCF

(*) Without the technical discount up to 2010

Free cash flow - R$ million 2007 2008 2009 2010 2011 2012 2013 1Q14

Op

era

tio

ns

EBITDA 403.5 504.1 469.7 649.5 821.3 875.6 916.5 249.1

Used car sale revenue, net from taxes (850.5) (980.8) (922.4) (1,321.9) (1,468.1) (1,520.0) (1,747.3) (485.8)

Depreciated cost of cars sold (*) 760.0 874.5 855.1 1,203.2 1,328.6 1,360.2 1,543.8 432.0

(-) Income tax and social contribution (63.4) (52.8) (49.0) (57.8) (83.0) (100.9) (108.5) (31.7)

Change in working capital 13.3 (44.8) (11.5) 54.5 (83.9) 37.1 2.9 (44.4)

Cash provided before investment 262.9 300.2 341.9 527.5 514.9 652.0 607.4 119.2

Ca

pe

x -

Re

new

als

Used car sale revenue, net from taxes 850.5 980.8 922.4 1,321.9 1,468.1 1,520.0 1,747.3 302.9

Car investment for renewal (839.0) (1,035.4) (947.9) (1,370.1) (1,504.5) (1,563.3) (1,819.7) (317.1)

Net investment for fleet renewal 11.5 (54.6) (25.5) (48.2) (36.4) (43.3) (72.4) (14.2)

Fleet renewal – quantity 30,093 34,281 34,519 47,285 50,772 56,644 62,641 10,880

Investment, other property and intangibles investments (23.7) (39.9) (21.0) (51.1) (63.0) (80.2) (54.0) (9.8)

Free cash flow before growth and before interest 250.7 205.7 295.4 428.2 415.5 528.5 481.0 95.2

Ca

pe

x -

Gro

wth

Investment on cars for fleet (growth) (221.9) (299.9) (241.1) (540.3) (272.0) (55.5) (209.4) -

Cash provided by fleet decrease - - - - - - - 182.9

Change in accounts payable to car suppliers (51.0) (188.9) 241.1 111.3 32.7 (116.9) 89.7 (102.1)

Fleet growth (272.9) (488.8) 0.0 (429.0) (239.3) (172.4) (119.7) 80.8

Fleet increase / (reduction) – quantity 7,957 9,930 8,642 18,649 9,178 2,011 7,103 (6,569)

Free cash flow after growth and before interest (22.2) (283.1) 295.4 (0.8) 176.2 356.1 361.3 176.0

15

Changes in net debt R$ million

- 1,207.9 (34.3)

Financial expenses

(16.8)

IOC

Net debt

03/31/2014

FCF 176.0

-1,332.8

Net debt

12/31/2013

FCF after financial

expenses

141.7

Net debt was reduced by R$124.9 million due to strong cash generation in the period.

16

Debt maturity profile (principal) R$ million

The Company maintains a strong cash position and comfortable debt profile.

238.4 214.5

647.3 511.0

221.0 247.0 100.0 100.0

2014 2015 2016 2017 2018 2019 2020 2021

Cash

1,193.7

1,100.2

765.1

1,254.5 1,078.6

1,281.1 1,363.4 1,231.2 1,332.8 1,207.9 1,492.9

1,752.6 1,907.8

2,446.7 2,681.7 2,547.6 2,797.9 2,623.6

2007 2008 2009 2010 2011 2012 2013 1Q14

17

Debt - ratios

Net debt vs. Fleet value

BALANCE AT THE END OF

PERIOD 2007(*) 2008(*) 2009(*) 2010(*) 2011 2012 2013 1Q14

Net debt / Fleet value 51% 72% 57% 52% 51% 48% 48% 46%

Net debt / EBITDA** 1.9x 2.5x 2.3x 2.0x 1.7x 1.4x 1.5x 1.2x

Net debt / Equity 1.3x 2.0x 1.5x 1.4x 1.2x 0.9x 1.0x 0.8x

EBITDA / Net financial

expenses 5.4x 3.8x 4.2x 5.0x 4.6x 6.3x 8.3x 7.3x

(*) From 2007 to 2010, ratios based on USGAAP financial statements.

**Annualized

Net debt Fleet value

Comfortable debt ratios for the current scenario.

18

ROIC versus cost of debt after taxes

8.4% 8.8% 7.6% 7.3% 8.6%6.3% 6.0%

7.6%

21.3%17.0%

11.5%

16.9% 17.1% 16.1% 16.5%18.9%

2007 2008 2009 2010 2011 2012 2013 1Q14

12.9p.p. 8.2p.p.

4.0p.p. 9.6p.p. 8.5p.p. 11.3p.p.

9.8p.p.

The Company focuses in adding value to shareholders.

ROIC Cost of debt after taxes

Financial crisis effect

10.5p.p.

Annualized

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 projections 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’s management, 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, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither this presentation nor anything

contained herein shall form the basis of any contract or commitment whatsoever.

www.localiza.com/ri

Email: ri@localiza.com

Tel: 55 31 3247-7024

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