1

Localiza Rent a Car S.A.1Q10 Results - R$ millions, USGAAP

April 14th, 2010

2

1Q10 Highlights

Localiza is back to high levels of growth.

61.6%48.830.2Net income

1.9p.p.8.7%6.8%Net margin

14.5%132.1115.4EBITDA

26.4%563.9446.1Net revenue

Variation1Q101Q09R$ millions

15,79170,60854,817End of period fleet

3,12010,9487,828Sold cars

11,09911,486387Purchased cars

Variation1Q101Q09Quantity

3

Car Rental Division

181.4151.1

607.8585.7

442.7357.2

271.3

2005 2006 2007 2008 2009 1Q09 1Q10

Net revenue (R$ million)

CAGR: 29.2%3.8%

The 21.4% growth in rentals was partially offset by the drop of 1.1% in the average rental rate, due to the option of insurance contracting.

20.1%

3,4114,668

5,793

7,940 8,062

1,952 2,369

2005 2006 2007 2008 2009 1Q09 1Q10

CAGR: 32.5% 1.5%

21.4%

# daily rentals (thousand)

4

jan feb mar apr may jun jul aug sep oct nov dec

2005 2006 2007 2008 2009 2010

In the 1Q10, daily rentals grew 21.4%.

# daily rentals

# daily rentals (thousand)

711.2591.6 649.2

835.4 722.1 811.3

Jan Feb Mar

2009 2010

17.5%25.0%

22.1%

Car Rental Division

5

68.6%76.2%

66.2%67.6% 64.5%

0.02.4

16.1 15.3

9.7

0 .0 %

1 0 .0 %

2 0 .0 %

3 0 .0 %

4 0 .0 %

5 0 .0 %

6 0 .0 %

7 0 .0 %

8 0 .0 %

9 0 .0 %

1Q09 2Q09 3Q09 4Q09 1Q10

Utilization rate x purchases

With the reduction of the purchase levels in the 1Q10, utilization rate grew.

Utilization rate # of purchased cars (thousand)

Car Rental Division

6

3,3514,188

5,144

6,4377,099

1,780 1,890

2005 2006 2007 2008 2009 1Q09 1Q10

Fleet Rental Division

CAGR: 24.3%

# daily rentals (thousand)

6.2%

149.2190.2

228.2

276.9313.4

75.9 84.4

2005 2006 2007 2008 2009 1Q09 1Q10

CAGR: 22.9%

Net revenue (R$ million)

11.2%

13.2%

10.3%

Revenues grew above volume, due to an increase of 4,9% in the average rental rate.

7

Used car sales

Sale’s volumes are back to pre-crisis levels.

18,76323,174

30,09334,281 34,519

7,82810,948

2005 2006 2007 2008 2009 1Q09 1Q10

CAGR: 22.3%

39.9%

0.7%

# of sold cars

# of sold cars

2,521 2,4712,836

3,5773,158

4,213

Jan Feb Mar

2009 2010

41.9%

27.8% 48.6%

8

The average age of the operating fleet is returning to pre-crisis levels.

6.3

9.5

6.9

2008 2009 1Q10

Average age of operational fleet (month)

12.3

16.618.7

2008 2009 1Q10

Average age of sold cars (month)

Car Rental Division

9

Consolidated net revenuesR$ million

Consolidated net revenues grew 26.4% in the 1Q10.

876.9

1,145.4

1,531.7

1,855.7 1,856.3

446.1563.9

2005 2006 2007 2008 2009 1Q09 1Q10

CAGR: 28.4%

26.4%

10

277.9 311.3

403.5

504.1 469.7

115.4 132.1

2005 2006 2007 2008 2009 1Q09 1Q10

- 6.8%

Consolidated EBITDA marginR$ million

5.5%

51.5%

67.0%

44.3%

2008

48.3%49.0%49.3%52.6%51.2%51.0%Rental consolidated

0.8%

64.5%

40.6%

1Q10

1.4%

65.2%

40.8%

1Q09

1.1%

66.5%

40.3%

2009

4.6%

69.1%

42.0%

2006

5.4%

68.7%

44.5%

2007

13.2%Used car sales

62.3%Fleet rental

45.3%Car rental

2005Divisions

CAGR: 22.0%

EBITDA margins remained stable.

14.5%

11

Depreciation per carR$

1,318.0

332.9

2,546.0 2,577.0

939.1492.3

2005 2006 2007 2008 2009 1Q10

Car Rental Division

Average depreciation per car fell again in the 1Q10.

3,254.42,981.3

2,383.3

4,371.75,083.1

2,395.8

2005 2006 2007 2008 2009 1Q10

Fleet Rental Division

12

Net incomeR$ million

48.830.2

106.5138.2

190.2

127.4 116.3

2005 2006 2007 2008 2009 1Q09 1Q10

61.6%

Net income grew 61.6% in the 1Q10.

18.6

(8.1)

10.6

0.2

(0.8)

16.7

(0.6)

17.3

Var. R$

127.4

(46.6)

(133.3)

(18.3)

(178.5)

504.1

54.5

449.6

2008

116.3

(47.2)

(112.9)

(21.0)

(172.3)

469.7

10.6

459.1

2009

(11.1)

(0.6)

20.4

(2.7)

6.2

(34.4)

(43.9)

9.5

Var. R$

132.1115.4EBITDA Consolidated

48.830.2Net income

(19.3)(11.2)Income tax and social contribution

(28.2)(38.8)Financial expenses, net

(5.1)(5.3)Other depreciation

(30.7)(29.9)Depreciation of revenue-earning vehicles

2.53.1EBITDA - Used car sales

129.6112.3EBITDA - Car rental and fleet rental

1Q101Q09Reconciliation of EBITDA x Net Income

13

Free cash flow - FCF

(161.3)

(25.5)

(194.0)

58.2

(28.0)

(47.8)

-

(496.0)

448.2

134.0

(24.2)

(32.7)

190.9

361.2

(448.2)

277.9

2005

53.2

222.0

(287.0)

118.2

(32.7)

(53.0)

-

(643.3)

590.3

203.9

(4.8)

(42.7)

251.4

530.4

(590.3)

311.3

2006

(22.2)

(51.0)

(221.9)

250.7

(23.7)

14.2

-

(839.0)

853.2

260.2

13.3

(63.4)

310.3

760.0

(853.2)

403.5

2007

295.4

241.1

(241.1)

295.4

(21.0)

(23.4)

15.2

(963.1)

924.5

339.8

(11.5)

(49.0)

400.3

855.1

(924.5)

469.7

2009

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

50.2

(8.7)

(14.6)

73.5

(7.7)

(16.9)

(297.1)

295.4

98.1

1.7

(15.6)

112.0

275.3

(295.4)

132.1

1Q10

(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

Free cash flow

Change in amounts payable to car suppliers (capex)

Capex of car – growth

Free cash flow before growth

Capex - Property and equipment, net

Net capex for renewal

Capex of car – renewal

Used car sales revenues

Cash provided before capex

Working capital variation

(-) Income tax and social contribution – current

EBITDA without used car sales revenues and costs

Cost of used car sales

Used car sales revenues

EBITDA

Free cash flow - R$ million

The Company generated R$50.2 million of free cash flow in the 1Q10, even with a small increase in the fleet.

14

Net debt reconciliationR$ million

Net debt was reduced by R$16.5 million.

-1,078.6 -1,062.1

(24.8)

Interest and

others

(8.9)

Interest on own capital

Net debt12/31/2009

Net debt 03/31/2010

Free cash flow

50.2

15

Debt – profile and costsR$ million

Debt profile was extended.

(250.8)-----(250.8)Cash and cash equivalents

991.7160.0 211.8 239.6 225.0 205.4 (50.1)-Total net debt - principal

1,242.5 160.0 211.8 239.6 225.0 205.4 200.7 -Total gross debt - principal

2.0---0.4 0.9 0.7 TJLP + 3.80%paBNDES

400.0 100.0 100.0 100.0 100.0 --CDI +2.02%paDebentures - 1st Issuance, Total Fleet

200.0 -----200.0 108.9% of CDICommercial Papers

200.0 -66.8 66.6 66.6 --CDI + 0.59%paDebentures - 2nd Issuance

440.5 60.0 45.0 73.0 58.0 204.5 -CDI + 1.25%paWorking Capital

Total201520142013201220112010Average effective costGross debt - principal

*Stand by refers to R$100 MM limit with BNDES, with term of drawing until sept/2010

Debt profile (principal) on 03/31/10

200.7 205.4 225.0 239.6211.8

160.0

250.8Cash

2010 2011 2012 2013 2014 2015

Stand by*

16

Debt – ratios

R$ million

Indebtedness ratios improved and remain comfortable.

535.8 440.4765.1

1,254.51,078.6 1,062.1

900.2

1,247.71,492.9

1,752.61,907.8 1,907.7

2005 2006 2007 2008 2009 1Q10

Net debt Fleet value

2.0x

1.8x

2.5x

72%

2008

1.5x

1.7x

2.3x

57%

2009

1.4x1.3x0.7x1.4xNet debt / Equity (USGAAP)

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

2.0x*1.9x1.4x1.9xNet debt / EBITDA (USGAAP)

56%51%36%60%Net debt / Fleet value (USGAAP)

1Q10200720062005BALANCE AT THE END OF THE PERIOD

* annualized

17

Thank you!