1. Localiza Rent a Car S.A.
3Q08 Results
(R$ million - USGAAP)
Confins airport branch – Belo Horizonte
24h reservation
0800 979 2000
www.localiza.com
1
November, 2008

2. Agenda
• Company
• Drivers of growth
• Competitive advantages
• Growth with profitability
• 3Q Financials
• Strategies for the current scenario
2

3. Integrated business platform
44,215 cars 22,481 cars
1.5 million clients 568 clients
194 agencies
2,321 employees 205 employees
Synergies:
cost reduction
cross selling
bargaining power
27,635 cars sold
9,348 cars
82% sold to final
213 agencies in 9 countries
consumer
137 agencies in Brazil
33 points of sale
468 employees
18 employees
This integrated business platform gives Localiza superior performance
Date: 9M08
3

4. Strategy by division
Increase market leadership maintaining high return
Core Businesses
Add value to the brand by expanding the network in Brazil
and South America
Create value taking advantage of the integrated business
platform synergies
Support
Add value to the businesses, reducing depreciation as a
competitive advantage
4

5. Breakdown per division
Revenues EBITDA Net Income
Franchising
Franchising Franchising
1%
Car rental 1%
1% 11%
Fleet rental
29%
36%
49%
Used car
Car rental
sales 39% 63%
Fleet rental
55%
15%
Revenues EBITDA Net income
Car rental 29% 49% 54%
Fleet rental 15% 39% 45%
Used car sales 55% 11% *
Franchising 1% 1% 1%
Total 100% 100% 100%
* Used car results are alocated in the rental divisions Date: 2007
5

6. Agenda
• Company
• Drivers of growth
• Competitive advantages
• Growth with profitability
• 3Q Financials
• Strategies for the current scenario
6

7. Growth opportunities
GDP elasticity
Consolidation Air traffic
Credit cards
Fleet outsourcing
Replacement
7

8. Growth opportunities: GDP
Revenues accumulated growth rate – rentals
Localiza
5.9x
Sector
2.4x
GDP
2004 2005 2006 2007
Localiza’s revenue has been growing 5.9x the GDP.
The Brazilian car rental market grew 2.4x the GDP in the same period.
Source: Bacen, Abla and Localiza
8

9. Growth opportunities: consolidation
Brazilian market 2008
(# of agencies)
Airport agencies Off-airport agencies
Localiza*
Hertz**
240 68 Unidas**
Others***
32
60
Localiza*
Avis**
82
Avis**
31
49
Unidas**
Hertz**
35
32 Others
1901
Off-airport market is fragmented among almost 2,000 small local car rental companies
9
Fonte: *Localiza em 30/06/08; **Site de cada empresa em 22/08/2008; ***Supondo que cada locadora local tenha uma agência

10. Growth opportunities: airport x off-airport markets
Car rental division
Car rental revenues breakdown
Car rental revenues growth
100%
100% 100% 100%
2006 2007 Up to Sep/08 34%
38%
41%
46%
Airports 16% 14% 24%
66%
62%
59%
54%
Off-airport 47% 28% 49%
2005 2006 2007 Up to Sep/08
Off-airports Airports
Off-airport revenues have grown 2x faster than on-airports.
10

11. Agenda
• Company
• Drivers of growth
• Competitive advantages
• Growth with profitability
• 3Q Financials
• Strategies for the current scenario
11

12. Competitive advantages
Gains of Higher
scale competitiveness
Integrated platform
Geographical distribution
Rating
Used car sales network
Lower depreciation
Know-how
Strong brand
Market share
increase
12

13. Competitive advantages: largest distribution
Nationwide
Nationwide
presence
presence
Strategic
Strategic
locations
locations
International
International
footprint
footprint
407 agencies in 9 countries
Date: 9M08
13

14. Competitive advantages: largest distribution
Agencies in Brazil Cities in Brazil
322 229
275
184
80 54
322 229
95 62
100 68
Localiza Unidas Hertz Avis
Localiza Hertz Unidas Avis
Localiza network is larger than the second, the third and the fourth competitors combined
in number of agencies and cities.
Source: Each company website as of August 22nd , 2008
14

15. Competitive advantages: rating
Moody’s debt rating as of August, 2007 (Global scale)
Baa2
Ba1
Ba2
Ba3 Ba3
B1
B1
Enterprise Localiza Avis Budget Hertz Europcar Dollar Vanguard
Thrifty
Moody’s corporate rating as of September, 2008 (Local Currency)
Localiza Rent a Car S.A. Aa2.br
Braskem S.A. Aa2.br
Magnesita Refratarios S.A. Aa2.br
Companhia Siderurgica Nacional - CSN Aa1.br
CEMIG Aa3.br
Companhia Energetica de Minas Gerais -
Duke Energy Int. Geração Paranapanema S.A. Aa2.br
Rio Grande Energia S.A. - RGE Aa2.br
Localiza has one the best rating among its international peers
15

16. Competitive advantages: lower depreciation
32 stores in Brazil
Logistic of distribution
Know-how of used car market
Selling to final consumers in order to
have higher revenue per sold car
Car sales inventory as a buffer of the car rental during peaks of demand
16

17. Competitive advantages: depreciation
3,618.0
24%
2 9 %
3 ,
8 00.
0
22%
2,640.0 19%
19% 18% 2 ,
8 00.
0
17%
2,142.0
1,752.0
1,656.0 11% 1 ,
8 00.
0
8%
939.1
9% 777.0
7%
4% 492.3
5% 6%
7% 332.9
322.9 8 00.
0
3%
6% 2%
0% 0% -1%
1
- % 2
( 00. )
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
GDP 0.3% 4.3% 1.3% 2.7% 1.1% 5.7% 2.9% 3.7% 5.4 6.0
Average depreciation Growth of purchase price (%) Growth of sale price (%)
Localiza 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Average purchase price (nominal) 12,635 13,788 14,575 14,586 15,600 16,140 19,960 24,350 25,840 25,650 27,600
Average sale price (nominal 10,770 11,362 13,464 13,971 14,026 16,680 19,490 23,060 24,770 27,460 27,930
Average capex for renewal 1,865 2,426 1,111 615 1,574 (540) 470 1,290 1,070 (1,810) (330)
Average sold fleet age 16.4 13.7 15.5 14.1 14.1 12.8 11.6 11.0 14.7 12.2 12.2
Average depreciation 3,285 2,640 3,618 2,142 1,656 1,752 323 492 939 333 777
% over average purchase price 26.0% 19.1% 24.8% 14.7% 10.6% 10.9% 1.6% 2.0% 3.6% 1.3% 2.8%
The depreciation is calculated using the estimated sale price in the future, net of the sales expenses.
17

18. Agenda
• Company
• Drivers of growth
• Competitive advantages
• Growth with profitability
• 3Q Financials
• Strategies for the current scenario
18

19. Localiza has been increasing its market share
2004 2007
Localiza
33.0%
22.4% Hertz
6.0%
Car rental Others
Avis 17.0%
50.0%
Unidas 6.0%
5.0%
Total Fleet
10.2% 13.2%
Unidas
8.4%
Fleet rental
Others
78,4%
15.5%
22.1%
Consolidated
Localiza is gaining market share…
19
Source: ABLA e Company, based on revenue

20. Growth with strong results
Revenue evolution
%
0.3
:3
GR
CA 853
.5%
CAGR: 16 590
448
303
251
191 679
151 555
89 429
90 85 331
86 286 281
270
221
145 160
127
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Car sold / EOP fleet 77% 74% 50% 31% 42% 57% 69% 55% 52% 50% 56% 45%
EBITDA evolution
6%
27. 403
:
GR
CA
311
278
23.9%
CAGR: 198
154 150 152
134
85
62
42
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
GDP% 3.4 0.0 0.3 4.3 1.3 2.7 1.1 5.7 2.9 3.7 5.4
1.9 4.4
Average
… without loosing profitability.
20

21. Agenda
• Company
• Drivers of growth
• Competitive advantages
• Grow with profitability
• 3Q Financials
• Strategies for the current scenario
21

22. Average rented fleet evolution
Average rented fleet
38,517
33.4%
CAGR: 27.9% 28,877
30,232
17,069
24,477
Quantity
22.2%
22.9%
18,710 14,295 13,973
25.0%
14,450 11,635
19.4%
43.9%
9,308 24.1%
21,448
7,796 36.6%
41.3% 15,937 14,904
12,842
9,402
6,654
2004 2005 2006 2007 Up to sep/07 Up to sep/08
Car rental Fleet rental
Car rental Fleet rental
22,700
18,532
%
Quantity
Quantity
45.0
15,653 14,652
26.5%
3Q07 3Q08 3Q07 3Q08
3Q08 growth still strong...
22

23. Revenues evolution
Net revenue
28.3%
4.2%
R: 3 1,531.7
CAG 1,433.3
1,145.4
R$ million
1,117.5
8 5 3 .2 7 9 4 .7
876.9
38.6%
6 3 2 .8
5 9 0 .3
634.4
4 4 8 .2 530.4
29.5% 31.8%
22.2% 382.8
3 0 3 .0
29.4%
3 0 2 .9
6 7 8 .5 6 3 8 .6 %
5 5 5 .1 2 14 .5
35.2
4 8 4 .7
4 2 8 .7
3 3 1.4 2 2 7 .5
16 8 .3
2004 2005 2006 2007 Up to Sep/07 Up to Sep/08 3Q07 3Q08
Rental Used car sales
Fleet rental
Car rental
151.9
R$ million
%
40.6
R$ million
73.2
108.0
58.4
25.3%
3Q07 3Q08
3Q07 3Q08
...reflecting in the revenue increase...
23

24. EBITDA evolution
EBITDA
: 26.9% 403.5
C A GR 378.3
%
31.2
46.4
311.3 51.3
288.3
277.9
R$ million
26.9
34.5
59.1
197.5
36.5 28.8% 327.0
25.6% 357.1
30.0% 284.4
35.9% 253.8
218.8
161.0
2004 2005 2006 2007 Up to Sep/07 Up to Sep/08
Rental Used car sales
EBITDA per quarter
8.3%
133.9
123.6
120.9
104.6
98.1
R$ million
85.5
28.0%
1Q 2Q 3Q
2007 2008
...maintaining strong profitability...
24

25. EBITDA margin per division
EBITDA Breakdown - 2007 EBITDA Breakdown – 2008 YTD
Car Rental
Car Rental Fleet Rental
50%
Fleet Rental
49% 35%
39%
Franchising
Used Car Sale
Franchising 1%
Used Car Sale
14%
1%
11%
Divisions 2004 2005 2006 2007 Up to sep/07 Up to sep/08 3Q07 3Q08
Car Rental 39.3% 45.0% 41.9% 44.5% 43.7% 44.3% 46.0% 41.9%
Fleet Rental 63.4% 62.3% 69.1% 68.7% 68.7% 66.3% 71.9% 69.7%
Rentals consolidated 48.6% 51.0% 51.2% 52.6% 52.4% 51.2% 55.0% 50.8%
Used car salesSeminovos 12.0% 13.2% 4.6% 5.4% 5.5% 6.5% 5.6% 6.0%
59.6% 64.8% 56.1% 59.5% 59.5% 59.2% 62.2% 58.9%
Total EBITDA / rental revenues
...and consistent margins.
25

26. Net income evolution
Net income
190.2
157.2
138.2 134.3
R$ million
106.5
17.1%
90.6
28.0%
CAGR:
2004 2005 2006 2007 Up to Sep/07 Up to Sep/08
Net income per quarter
53.6
53.5 50.4 50.1
45.4
38.4
R$ million
1Q 2Q 3Q
2007 2008
26

27. Fleet: purchases and sales
13,864
7,957
10,346
(947)
7,342
6,467 41,499
38,050
33,520
Quantity
30,093
27,635
26,105
23,174 22,585
22,182 21,638
18,763
15,715
2004 2005 2006 2007 Up to Sep/07 Up to Sep/08
Purchases Sales
Purchases and sales per quarter
7,240
8,703
17,867
(2,079) 16,419
Quantity
10,627
9,292
7,716
7,213
1Q08 2Q08 3Q08
The growth of 7,240 cars in the 3Q08...
27

28. Fleet: net investment
Net investment *
207.7 443.6
340.0
241.8 (25.8) 1,238.3
190.1 1,060.9
930.3 853.2 794.7
690.0
R$ million
632,8
590.3 607,0
493.1 448.2
303.0
2004 2005 2006 2007 Up to Sep/07 Up to Sep/08
* Includes accessories
Purchases Sales
Net investment per quarter
235.1
252.9
538,0
(44.3) 475,7
302,9
268,9
224,6 222,8
1Q08 2Q08 3Q08
…demanded a net investment of R$ 235.1 million
28

29. Fleet: utilization rate
End of period fleet *
: 23.1% 66.696
3%
CAGR 49.
53.476
22,481
46.003 44.680
Quantity 35.4%
21.6%
35.865 17,790
24.4%
28.699 14,630
28.3% 16,600
11,762 %
5 7 .5
13.7%
9,168 44,215
30.2% 35,686
31,373 28,080
%
19,53123.4 24,103
2004 2005 2006 2007 Up to Sep/07 Up to Sep/08
Car rental Fleet rental
Utilization rate evolution
Car Rental Division
70.5%
69.3% 68.3% 66.1%
Up to Sep/07 Up to Sep/08 3Q07 3Q08
The purchases will be reduced in the 4Q08 so the utilization rate returns to previous level.
29
* Losses from theft and accidents are deducted from the fleet at the end of period

30. Net debt reconciliation
+ 136.4
FCF before growth
Capex Capex Working Taxes Capex growth Stock Dividends Interest
Rental
renewal other capital repurchase
EBITDA
288.4
-767.9 -1.201.1
-30.0 -34.7 -35.5
Net debt -46.7
-30.1 Net debt
-51.8 -86.9
12/31/2007
09/30/2008
-405.9
- 436.0 - 133.6
Discretionary Dividends and
investments Interests on equity
Debt increased due to the strong growth in fleet.
30

31. Net debt x fleet value
1,956.9
1,492.9
R$ million
1,247.7 1.201,0
900.2
767.9
612.2 539.3 443.1
281.3
2004 2005 2006 2007 Up to Sep/08
Net debt Fleet value
SALDOS EM FINAL DE PERÍODO 2004 2005 2006 2007 Up to Sep/08
Net debt /Fleet value 46% 60% 36% 51% 61%
Net debt / EBITDA (USGAAP) 1.4x 1.9x 1.4x 1.9x 2.4x*
Net debt / EBITDA (BRGAAP) 1.1x 1.5x 1.0x 1.4x 1.7x*
* Annualized
31

32. Debt on September 30th, 2008 (Principal)
R$ millions
Start Type Currency Interest rate Principal Due date
September-08 Guaranteed Account Real CDI + 157bps 33.8 November-08
February-08 Resolution 2770 Real* CDI + 130bps 2.2 January-09
February-08 Resolution 2770 Real* 105,2% CDI 15.0 February-09
September-08 Working Capital Real CDI + 95bps 169.5 March-09
March-08 Compror Real CDI + 99bps 33.3 April-09
January-08 Resolution 2770 Real* CDI + 115bps 74.5 May-09
328.3
Short term subtotal
April-05 1st Debentures Real 108,5% CDI 350.0 April-10
April-08 NCC - Commercial Banking Note Real 106,9% CDI 35.0 April-11
September-08 3rd Debentures Real CDI + 180bps 300.0 September-11
June-07 BNDES Real TJLP + 380bps 3.5 May-12
April-08 CCB - Commercial Credit Note Real CDI + 150bps 86.0 April-13
July-07 2nd Debentures Real CDI + 44bps 200.0 July-14
Long term subtotal 974.5
Gross Debt 1,302.8
Cash Equivalent 140.4
Net Debt 1,162.4
Short term debt (R$328.3) – Cash equivalent (R$140.4) = Short term net debt (R$187.9)
32

33. Debt profile
(R$ mm)
Debt profile on 09/30/2008
420.1
350.0
335.0
$420.1
$35.0
420,1
-300.0
+300.0
+174.4
335.0
294.5
300.0
294.5
113.1 109.7
66.7
33.8
35.0
2008 2009 2010 2011 2012 2013 2014
33

34. Free cash flow - FCF
250.7
R$ milliion
136,5
118.2
58.2
52.0
2004 2005 2006 2007 Up to Sep/08
Free cash flow – FCF (R$ million) 2004 2005 2006 2007 Up to Sep/08
EBITDA Consolidated 197.5 277.9 311.3 403.5 378.3
Used car sales revenue (303.0) (448.2) (590.3) (853.2) (794.7)
704.8
Cost of used car sales 248.7 361.2 530.4 760.0
288.4
EBITDA provided by rental operating activities, before tax 143.1 190.9 251.4 310.3
(51.8)
(‐) Tax on income – current (40.9) (32.7) (42.7) (63.4)
Working capital variation (1) 6.2 (24.2) (4.8) 13.3 (35.5)
108.4 134.0 204.0 260.3
Cash provided by rental operating activities 201.2
448.2 590.3 853.2
Used car sales revenue 303.0 794.7
(349.3) (496.0) (643.3) (839.0)
Capex of vehicles ‐ renovation (824.6)
(46.3) (47.8) (53.0) 14.2
Net car capex ‐ renewal (30.0)
(10.2) (28.0) (32.7) (23.7)
Capex ‐ other (34.7)
52.0 58.2 118.2 250.7
Free cash flow before growth 136.5
(143.8) (194.0) (287.0) (221.9)
Net capex for vehicles ‐ growth (413.7)
Change in amount payable to cars suppliers (capex) (1) (21.9) (25.5) 222.0 (51.0) 7.8
(113.7) (161.3) 53.2 (22.3) (269.4)
Free cash flow after growth
Capex for growth in 2008 will be reduced by decreasing of 4,000 cars in the fleet.
34

35. EVA
9.1% 124.7
1 4 0.
0
3 1 .%
0
114.3
24.8%
24.6%
50.0% 21.3%
18.7%
1 00.
0
2 1 .%
0
37.3%
19.0%
76.2
16.9% 41.6% 15.7%
6 0.
0
1 1 .%
0
10.9%
11.2%
11.0%
55.5
39.2
2 0.
0 1 .%
0
2004 2005 2006 2007 2008 Annualized
EVA(*) (R$ million) Nominal WACC ROIC
2008 Annualized
2004 2005 2006 2007
Average investment capital– R$ million 507.4 606.3 986.2 1.137.5 1.547.9
NOPAT margin (1) 37.8% 35.2% 33.4% 35.6% 34.5%
Turnover of average investment capital (1) 0.65x 0.70x 0.56x 0.60x 0.55x
ROIC 24.6% 24.8% 18.7% 21.3% 19.0%
11.6% 13.6% 10.9% 8.4% 8.2%
Cost of debt (2)(3)
20.0% 16.2% 11.0% 11.5% 11.3%
Cost of equity(3)
Nominal WACC(3) 16.9% 15.7% 11.0% 11.2% 10.9%
Spread (ROIC ‐ WACC) ‐ p.p. 7.7 9.1 7.7 10.1 8.1
EVA ‐ R$ million 39.2 55.5 76.2 114.3 124.7
‐ 16.3 20.7 38.1 10.3
EVA increase – R$ million
(1) Margin and turnover calculated over rental revenue. (2) Cost of debt after taxes. (3) Calculated using long term premises
Rates increase and fleet reduction will contribute to the improvement of the ROIC.
35

36. Agenda
• Company
• Drivers of growth
• Competitive advantages
• Grow with profitability
• 3Q Financials
• Strategies for the current scenario
36

37. Strategies for the current scenario
1. To maintain a lean Company
2. To reduce the non-car capex, postponing investments
3. To raise fleet utilization in the car rental division to a minimum of 72%
4. To increase car and fleet rental rates to compensate the increase on
the interests rate and depreciation
5. To adjust the Company growth in line with cash generation
Concluding:
To maximize the use of resources searching the best results
37

38. Strategies for the current scenario: ownership breakdown
Long term management commitment
Position Name Years with the Co.
Founders Free-float*
Salim Mattar 35
CEO – Founder
50.01% 49.99%
COO - Founder Eugênio Mattar 35
CFO Roberto Mendes 23
Managing Director – Gina Rafael 28
Car Rental
Managing Director – Daltro Leite 23
Fleet Rental
Managing Director – Marco Antonio 18
Used Car Sales
The main founders continue in the Company followed by a very stable management.
* Includes 2,283,000 shares on treasury
38

39. Thank you!
39

40. 2007 Car rental financial cycle
1-year cycle Net car sale revenue
Funding (PV)
$26.3
$25.8
Revenue: 19.6
1 2 3 4 5 Expenses: (10.9) 8 9 10 11 12 Interest per car $3.1:
$2.0 - interest on debt
$1.1 - interest on equity
$25.8
$28.9
Car acquisition Funding (FV)
Total
Car rental Used cars
1 Year
Per operating car Per sold car
R$ % R$ % R$
Revenues 19,6 100,0% 27,4 100,0% 47,0
Additional revenue 0,7 2,5% 0,7
Cost (8,1) -41,5% (8,1)
SG&A (2,8) -14,2% (1,8) -6,6% (4,6)
Net car sale revenue 26,3 95,9% 26,3
Book value of car sale (24,6) -89,7% (24,6)
EBITDA 8,7 44,3% 1,7 6,2% 10,4
Depreciation (non-vehicle) (0,6) -3,3% (0,1) -0,2% (0,7)
Depreciation (vehicle) (0,3) -1,2% (0,3)
Interest on debt (2,0) -7,1% (2,0)
Tax (2,4) -12,2% 0,2 0,9% (2,3)
NET INCOME 5,7 28,8% (0,5) -1,8% 5,1
Return on asset 19,9%
40

41. 2007 Fleet rental financial cycle
Net car sale revenue
Funding (PV)
2-year cycle 27.5
32.2
Revenue: 30.7
Expenses: (9.6)
1 2 3 4 5 20 21 22 23 24
Interest per car $8.1:
$3.6 - interest on debt
$4.5 - interest on equity
32.2
40.3
Car acquisition
Funding (FV)
Fleet rental Used cars Total
2 Years 1Year
Per operating car Per sold car
R$ % R$ % R$ R$
Revenues 30,7 100,0% 28,5 100,0% 59,2 29,6
Additional revenue 0,5 1,9% 0,5 0,3
Cost (8,1) -26,3% (8,1) (4,0)
SG&A (1,5) -5,0% (1,5) -5,3% (3,0) (1,5)
Net car sale revenue 27,5 96,6% 27,5 13,8
Book value of car sale (26,7) -93,5% (26,7) (13,3)
EBITDA 21,1 68,7% 0,9 3,1% 22,0 11,0
Depreciation (non-vehicle) (0,2) -0,7% (0,2) (0,1)
Depreciation (vehicle) (4,8) -16,8% (4,8) (2,4)
Interest on debt (3,6) -12,7% (3,6) (1,8)
Tax (6,4) -20,7% 2,3 8,2% (4,0) (2,0)
NET INCOME 14,5 47,3% (5,2) -18,1% 9,3 4,7
Return on asset 14,5%
41

42. Financial cycle for 2009 scenario – Car rental
Increasing rates to face interest rate and depreciation
1-year cycle Net car sale revenue
Funding (PV)
$25,3
$25,8
Receita: 19,6
1 2 3 4 5 Expenses: (10,9) 8 9 10 11 12 Interest per car $ 4,1:
$3.0 – interest on debt
$1,1 – interest on equity
$25,8
$29,9
Car acquisition Funding (FV)
Car rental Seminovos Total
Per operating car Per sold car 1 year
R$ % R$ % R$
Revenues 21,2 100,0% 26,4 100,0% 47,6
Additional revenues 0,7 2,7% 0,7
Costs (8,1) -38,4% (8,1)
SG&A (2,8) -13,2% (1,8) -6,7% (4,6)
Net car sale revenue 25,3 96,0% 25,3
Book value of car sale (24,0) -90,9% (24,0)
EBITDA 10,3 48,4% 1,3 5,1% 11,6
Depreciation (non-vehicle) (0,6) -3,1% (0,1) -0,2% (0,7)
Depreciation (vehicle) (0,9) -3,4% (0,9)
Interest on debt (3,0) -11,4% (3,0)
Tax (2,9) -13,6% 0,8 3,0% (2,1)
Net income 6,7 31,8% (1,8) -6,9% 4,9
Return on asset 19,0%
42