1. Localiza Rent a Car S.A.
1T06 – Public meeting
0

2. Integrated business platform
123 agencies 13,116 cars
20,096 cars
Integrated
business
platform
Businesses
strategies
Synergies:
Objectives
cost reduction,
Competitive cross selling,
advantages
Growth
bargaining power
opportunities
195 agencies in 9 13 points of sale
countries 78.4% sold to final
7,076 cars consumer
Data-base: 03/31/2006
1

3. Businesses strategies
Increase market leadership maintaining high return on
investment
Integrated
Core Businesses
business
platform
Businesses Add value to the brand by expanding the network in
strategies
Brazil and Latin America
Objectives
Competitive
advantages Create value through fleet management market
opportunities, taking advantage of the synergies
Growth
opportunities
generated by the integrated business platform
Support
Add value to the businesses of the platform as a
competitive advantage, reducing depreciation costs
2

4. Objectives
Short-term:
Integrated Maintain profitability
business
platform (Net margin, ROE and EBITDA margin)
Businesses
strategies
Objectives
Long-term:
Competitive
advantages
Growth
Increase business volume through organic growth and horizontal
opportunities expansion, taking advantage of growth and consolidation
opportunities to expand market share and gains of scale
3

5. Competitive advantages
Gains of Bargaining
Integrated
business
scale power
platform
Businesses Strong brand
strategies
Geographic footprint
Objectives Integrated platform
Yield management
Competitive
advantages Know-how
Growth
opportunities Market share
Competitiveness
increase
4

6. Growth opportunities
GDP
elasticity
Air
Consolidation
Integrated
business
traffic
platform
Businesses
strategies
Objectives
Competitive
advantages
Growth
opportunities
Fleet rental Credit
market cards
Replacement
5

7. Localiza Rent a Car S.A.
1Q06 Results presentation
(R$ million - USGAAP)
6

8. 1Q06 Highlights
42,6% increase in car rental business volume
31,8% increase in fleet rental business volume
23,2% increase in car rental EBITDA (excluding used car sales)
37,3% increase in fleet rental EBITDA (excluding used car sales)
2.2 p.p utilization rate increase in car rental business
68,6% increase in the trading volume of RENT3 (R$ 7,1 million in the 1Q06)
7

9. Car rental performance
(R$ millon, USGAAP)
Daily rentals (thousands) Net revenue
%
+42.6 +17.8%
3,411 641
1.085 190
162
2,413 761 410 370
1,839 343 .6 %
98 +5 103
213
188 4%
271 +36. 87
155 197 64
2003 2004 2005 1Q05 1Q06 2003 2004 2005 1Q05 1Q06
Net income EBITDA
-9.2%
-1.4%
77 18 179
40
48 47
20
51 53 117 5
14
12 89 .5% 29 26
21 +36 74 2% 42
39
57 13 139 +23.
91 34
59
(4) (12) (2) (11)
2003 2004 2005 1Q05 1Q06 2003 2004 2005 1Q05 1Q06
Used car sales Car rental
8

10. Fleet rental performance
(R$ millon, USGAAP)
Daily rentals (thousands) Net revenue
3,351 +31.8% +15.7%
3,119 1.006
2,806 227
218 67
763 184 58
90 78 -6.7% 22
64 24
1%
120 128 149 +31. 45
34
2003 2004 2005 1Q05 1Q06
2003 2004 2005 1Q05 1Q06
Net income EBITDA
5.3%
+10 12 .4 %
103 +28 34
37 27
53 78 91
6 26
25 1
6%
63 69 +50. 3% 35
58
17 92 103 +37.
83
25
(4)
(26) (11) (13)
(42) (5) (1) (0) (1)
2003 2004 2005 1Q05 1Q06
2003 2004 2005 1Q05 1Q06
Used car sales Fleed rental
9

11. EBITDA margin per segment
(R$ milhões, USGAAP)
2003 2004 2005 1Q05 1Q06
Margin Margin Margin Margin Margin
Rentals 38.1% 45.9% 51.2% 53.7% 48.5%
Car rental
Used car sales 6.6% 12.3% 10.8% 14.2% 5.0%
TOTAL 20.7% 28.4% 27.9% 29.8% 25.0%
Fleet rental
Rentals 69.4% 71.9% 69.2% 73.5% 76.9%
Used car sales -9.2% -1.4% -0.2% 3.8% -5.0%
TOTAL 43.5% 41.6% 45.3% 44.9% 49.9%
Rentals 51.8% 56.2% 57.6% 60.6% 58.2%
Consolidated
Used car sales 2.9% 9.9% 8.9% 12.2% 3.3%
Franchising 43.6% 48.6% 47.2% 47.1% 29.4%
TOTAL 28.6% 33.1% 32.6% 33.9% 31.4%
10

12. Consolidated performance
(R$ million, USGAAP)
Daily rentals Net revenue
2% +17.1%
+17% +37. %
C AGR: : + 28
6,762 2,091 CAGR 877 222 260
4,959 5,219
634
1,524 532 %
+3.2 126
122
% 134
+34
100
2003 2004 2005 1Q05 1Q06 2003 2004 2005 1Q05 1Q06
EBITDA Net income
% +8.5%
: + 37 : +2
5%*
CAGR 286 81 AGR +13.9%
75 106 C 107
210 -72% 4 91 30
152 15 26
69*
% 77
60 +29
2003 2004 2005 1Q05 1Q06
2003 2004 2005 1Q05 1Q06
Margin 13.0% 14.,3% 12.2% 11.8% 11.4%
•Pro forma result disregarding mark-to-market (MTM)
of derivatives contracts
11

13. Net income evolution
(R$ millon, USGAAP)
EBITDA variation = + 6.4 million
Rentals = + 17.1 milion Other itens variation = - 2.8 million
Used car sales = - 10.7 million
Revenues Costs
+37.9 -23.4
+3.9
-13.6
+34.0 -9.8 SG&A
-8.1
-1.0 Interests
Depreciations
Stock option Taxes
-7.1 +1.4 -3.8
-0.9 +0.5
26.0 29.6
+13.9%
Net income Net income
1Q05 1Q06
12

14. Cash flow
(R$ millon, USGAAP)
Synthetic cash flow 1Q05 1Q06 Variation
Net income adjusted to reconcile net income to net cash 50.3 56.2 5.9
Increase in working capital (client, accounts payable, etc) (16.6) (9.4) 7.2
Car purchase (64.8) (51.1) 13.7
Cost of used cars sold 95.1 106.9 11.8
Net cash generated by operational activities 64.0 102.6 38.6
Net cash generated by investment and financing activities 385.3 (104.1) (489.4)
Increase (reduction) of net cash 449.3 (1.5) (450.7)
Availabilities at the beginning of the period 129.3 70.7 58.6
Availabilities at the end of the period 578.6 69.2 509.4
13

15. Indebtedness
(R$ millon, USGAAP)
Net debt (R$ millon) USGAAP
539
479.6
281 250.3
322,8*
87 322.8*
2003 2004 2005 1Q05 1Q06
1Q06*
Rating S&P - Positive BrA 2003 2004 2005 1T05 1T06 pro forma
Net debt / fleet 22% 46% 60% 44% 58% 39%
Net debt / equity 0.36 0.96 1.37 0.8 1.2 0,.6
* Pro forma considering R$ 156.8 million of the primary offer
14

16. RENT3 performance
R ENT3 X IBOV ESPA
31/12/05 31/03/06
50 120
28,63 + 28,5% 36,8
45
100
40
80
35
30 60
25
40
20
20
15
10 0
Volume RENT3 RENT3 IBOVESPA
Average daily volume traded in 1Q06 of R$ 7,1 MM
1Q06 RENT3 performance: +28.5%
1Q06 RENT 3 x IBOVESPA performance: +15.1%
15

17. Perspectives
Utilization rate above 65% in car rental business
25% increase in car rental business volume
15% increase in fleet rental business volume
EBITDA margin in car rental business of 45% (excluding used car sales)
EBITDA margin in fleet rental business of 70% (excluding used car sales)
16

18. 1Q06 Results Analysis
17

19. Rental results analysis – % over revenue
Percentages
Car Rental 1Q06 pro
2003 2004 2005 1Q05 1Q06 form* Difference (*)
Rental net revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% -
Rental costs -43.9% -40.0% -36.4% -35.9% -37.3% -36.8% -0,9p,p,
Gross profit 56.1% 60.0% 63.6% 64.1% 62.7% 63.2% -0,9p,p,
Operating expenses (SG&A) -20.0% -18.5% -15.3% -12.2% -16.4% -13.2% -1,0p,p,
Net financial expenses -0.6% -0.7% -1.3% -2.8% -0.3% -0.3% 2.5p.p.
Operating profit after financial result 35.5% 40.8% 46.9% 49.1% 46.0% 49.7% 0,6p,p,
Non-operating result 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% -
Income tax -10.8% -12.0% -14.2% -16.2% -13.0% -14.1% 2,1p,p,
Net income of the period 24.8% 29.0% 32.8% 32.9% 33.0% 35.6% 2,7p,p,
EBITDA margin 38.1% 46.0% 51.2% 53.7% 48.5% 49.7% -4,0p,p,
ALUGUEL 1Q06 pro
Car Rental
2003 2004 2005 1Q05 1Q06 form* Difference (*)
Rental net revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% -
Rental costs -24.2% -21.9% -23.1% -19.8% -16.9% -16.9% 2,9p,p,
Gross profit 75.8% 78.1% 76.9% 80.2% 83.1% 83.1% 2,9p,p,
Operating expenses (SG&A) -6.7% -8.1% -9.2% -7.0% -7.1% -6.2% 0,8p,p,
Net financial expenses -0.5% -0.5% -0.4% -0.3% -0.7% -0.7% -0,4p,p,
Operating profit after financial result 68.7% 69.5% 67.4% 72.9% 75.3% 76.2% 3,3p,p,
Non-operating result 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -
Income tax -20.8% -20.3% -21.2% -24.5% -19.8% -20.0% 4,5p,p,
Lucro líquido do período 47.9% 49.2% 46.1% 48.4% 55.6% 56.2% 7,8p,p,
Margem EBITDA 69.4% 71.9% 69.2% 73.5% 76.9% 77.8% 4,3p,p,
(*) pro-form numbers (excluding stock options and bonus expenses).
18

20. Rental results analysis – daily rental
R$ / Daily rentals
ALUGUEL
Car Rental 1Q06 pro
2003 2004 2005 1Q05 1Q06 form* Difference (*)
Rental net revenue 84.4 81.7 79.5 84.2 80.5 80.5 -4.4%
Rental costs (37.1) (32.7) (29.0) (30.2) (30.0) (29.7) -1.8%
Gross profit 47.4 49.0 50.6 54.0 50.5 50.9 -5.8%
Operating expenses (SG&A) (16.9) (15.1) (12.2) (10.2) (13.2) (10.6) 3.4%
Net financial expenses (0.5) (0.5) (1.1) (2.4) (0.3) (0.3) -88.3%
Operating profit after financial result 30.0 33.4 37.3 41.4 37.0 40.0 -3.4%
Non-operating result - 0.1 0.1 - - - -
Income tax (9.1) (9.8) (11.3) (13.7) (10.5) (11.3) -17.1%
Net income of the period 20.9 23.7 26.1 27.7 26.5 28.7 3.4%
Net margin 24.8% 29.0% 32.8% 32.9% 33.0% 35.6% 2,7p,p,
EBITDA 32.1 37.5 40.7 45.2 39.1 42.0 -7.0%
EBITDA margin 38.1% 46.0% 51.2% 53.7% 48.5% 52.2% -1,5p,p,
Car Rental
ALUGUEL 1Q06 pro
2003 2004 2005 1Q05 1Q06 form* Difference (*)
Rental net revenue 38.6 45.5 44.5 45.0 44.7 44.7 -0.5%
Rental costs (9.3) (10.0) (10.3) (8.9) (7.6) (7.6) -15.2%
Gross profit 29.2 35.6 34.3 36.0 37.2 37.2 3.2%
Operating expenses (SG&A) (2.6) (3.7) (4.1) (3.1) (3.2) (2.8) -11.5%
Net financial expenses (0.2) (0.2) (0.2) (0.1) (0.3) (0.3) 127.6%
Operating profit after financial result 26.5 31.6 30.0 32.8 33.7 34.1 4.1%
Non-operating result 0.0 0.0 0.0 0.0 0.0 0.0 -
Income tax (8.0) (9.2) (9.5) (11.0) (8.9) (8.9) -18.7%
Net income of the period 18.5 22.4 20.5 21.8 24.9 25.2 15.6%
Net margin 47.9% 49.2% 46.1% 48.4% 55.6% 56.2% 7,8p,p,
EBITDA 26.8 32.7 30.8 33.0 34.4 34.8 5.4%
Margem EBITDA 69.4% 71.9% 69.2% 73.5% 76.9% 77.8% 4,3p,p,
(*) pro-form numbers (excluding stock options and bonus expenses).
19

21. Why did Seminovos EBITDA margins fall from 8.8% in
2005 to 3.3% in the 1Q06?
20

22. Evolution of car prices increase
9.8%
10.0%
6.0% 4.7%
3.7%
2.0% 0.1%
-1,0%
-2.0% 2000 2001 2002 2003 2004 2005 1Q06
-6.0% -4.1% -5.1%
2000 2001 2002 2003 2004 2005 1Q06
New car price 1.90% 6.72% 7.39% 13.95% 17.42% 9.40% 1.50%
increase (Palio)
IPCA inflation 5.97% 7.,67% 12.53% 9.30% 7.60% 5.69% 1.44%
Real increase - 4.07% - 0.95% - 5.14% + 4.65% + 9.82% + 3.71% + 0.06%
(decrease)
21

23. Evolution of depreciation in the Car Rental segment
4,000 16%
14%
3,000 12% 12%
9% 9%
2,000 8%
3,618
2,143 4%
1,000 1,752 3% 4%
1,656 2%
721
492
- 323 0%
2000 2001 2002 2003 2004 2005 1Q06
Average depreciation per car % over rental revenue
2000 2001 2002 2003 2004 2005 1Q06
Depreciation per car 3,617.70 2.142.50 1,656.20 1,752.30 322.90 492.30 720.60
% over rental revenue 13.8% 11.9% 9.3% 9.2% 1.8% 2.9% 4.2%
22

24. Depreciation rate X Seminovos EBITDA margin
Exemple 1 Exemple 2 Exemple 3 Exemple 4 Exemple 5 Exemple 6 Exemple 7
Car purchase price 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Sale price 95.00 100.00 105.00 110.00 115.00 120.00 125.00
Depreciation rate 14.5% 10.0% 5.5% 1.0% 0% 0% 0%
Book Value 85.50 90.00 94.50 99.00 100.00 100.00 100.00
SG&A (7%) 6.65 7.00 7.35 7.70 8.05 8.40 8.75
EBITDA 2.85 3.00 3.15 3.30 6.95 11.60 16.25
EBITDA margin 3% 3% 3% 3% 6% 10% 13%
Average 3.0% 9.6%
Depreciation rate = {(sale price – 10% of sale price) / Car purchase price}-1
where 10% = selling expenses (7%) + safety margin (3%)
23

25. Conclusion
From 2003 to 2005 many Localiza cars presented zero depreciation
rate, that resulted in an average EBITDA margin of 10%.
In ordinary conditions, by the sum of the years’ digit depreciation
rate calculation method, the EBITDA margin will be around 3%.
We expect that the car prices in Brazil in 2006 increase
just a little above the inflation.
24

26. Disclaimer - Forward Looking Statements
The material that follows 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. 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’s management,
LOCALIZA cannot guarantee future results or events. LOCALIZA expressly disclaims a duty to update
any of the forward-looking statement.
25

27. Localiza Rent a Car S.A.
1T06 – Public meeting
26