1July 18, 2012

Localiza Rent a Car S.A.2Q12 and 1H12 results

R$ million, IFRS

2

� Reflexes of the tax reduction (IPI) for new cars from May 21, 2012 to August 31, 2012 that might be extended:

� Drop in the residual value expected for cars after their useful life. In the 2Q12 an amount of R$100.1 million was recognized as additional

depreciation

� Increase of pre-owned car sales sold for fleet renewal:April: 3,876; May: 4,917 and June: 5,711 cars (all time high)

� The Company expects that the reduction in sale prices will be offset by the reduction of purchase prices with the IPI reduction (with no impact on the CAPEX for fleet renewal)

� Utilization rate of 74.2% in the Car Rental division

� Free cash flow of R$242.3 million in the 1H12

Highlights

3

Net revenues (R$ million)

# daily rentals (thousand)

3,4114,668

5,793

7,940 8,062

10,734

12,794

6,243 6,664

3,179 3,334

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

CAGR: 24.6%

4.9%6.8%

258.6346.1

428.0

565.2 585.2

802.2

980.7

472.4532.3

239.4 264.3

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

CAGR: 24.9%

10.4%12.7%

Car Rental Division

Revenue grew above volume due to the increase in the average rental rate per car.

4

Net revenues (R$ million)

# daily rentals (thousand)

3,3514,188

5,1446,437

7,0998,044

9,603

4,6255,248

2,372 2,637

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

CAGR: 19.2%

11.2%13.5%

142.0184.0

219.8268.4

303.2

361.1

455.0

215.7261.3

111.0131.8

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

CAGR: 21.4%

18.7%

21.1%

Fleet Rental Division

Revenues reflect the interest and depreciation assumptions at the time of the agreement.

5

26,10533,520

38,05044,211 43,161

20,60218,76323,174

30,09334,281 34,519

27,789

13,198

28,667

59,950

21,921

65,934

12,47814,50424,059

47,285 50,772

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

7,34210,346 7,957

18,649

9,930 8,6424,608

(5,868)

9,178

8,124 (1,306)

690.0930.3

1,060.91,335.3

1,204.2

1,910.41,776.5

628.5 593.8379.0446.5

588.8850.5

980.8 922.4

1,321.91,468.1

693.3 762.7

352.7 389.3

825.6

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

243.5341.5

210.4

308.4

354.5281.8

588.5

132.3 (134.2)241.1 (10.3)

Net Investment

Purchased cars Sold cars* It does not include theft / crashed cars.

Fleet increase * (quantity)

Net investment (R$ million)

Purchases (accessories included) Net used car sales revenues

Car purchases were adjusted to improve fleet productivity…

6

68.2% 68.9% 69.7% 68.9% 68.2%74.2%

2 0 .0 %

2 5 .0 %

3 0 .0 %

3 5 .0 %

4 0 .0 %

4 5 .0 %

5 0 .0 %

5 5 .0 %

6 0 .0 %

6 5 .0 %

7 0 .0 %

7 5 .0 %

8 0 .0 %

8 5 .0 %

9 0 .0 %

9 5 .0 %

1 0 0 .0 %

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

Utilization rate – car rental division

...resulting in higher utilization rate.

7

31,373 35,686 39,112 47,51761,445 64,688 63,500 58,43611,762

14,63017,790

23,40322,778

26,615 31,629 28,654 31,412

24,103

2005 2006 2007 2008 2009 2010 2011 1H11 1H12

CAGR: 17.9%

35,86546,003

53,47662,515

70,295

88,060 89,84892,15496,317

-2.5%

End of period fleetQuantity

Car rental Fleet rental

Fleet is adjusted to demand.

8

Seminovos network increase

Used car sales network has increased by 5 stores.

# of points of sale

2632 35

4955

6671

13

2005 2006 2007 2008 2009 2010 2011 1H12

+5

9

Average monthly car sales per street store

82 82 82

59

74 73 7074

2008 2009 2010 2011 1Q12 Apr-12 May-12 Jun-12

Number of sold cars is weighed by number of opened stores in the period

Productivity has improved, contributing to the reduction of fixed cost per car sold.

10

408.4 537.4 655.0 842.9 898.5 1,175.3 1,450.0694.6 801.6

353.7 400.3

446.5588.8

850.5980.8 922.4

1,468.1

693.3 762.7

352.7 389.3

1,321.9

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

CAGR: 22.7%

854.91,126.2

1,505.51,823.7

2,918.1

1,820.9

2,497.2

706.4 789.6

16.9%

1,387.91,564.3

23.4%

15.4%

12.7%

13.2%

11.8%

Consolidated net revenuesR$ million

Rentals Seminovos

In the 2Q12, net revenues grew due to the increase of 13.2% in rental revenues and 10.4% in Seminovos revenues

11

215.7200.6425.7386.8

821.3649.5

469.7504.1403.5

311.3277.9

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

7.5%

CAGR: 19.8%

10.1%

2.6%

52.3%

68.0%

45.3%

2010

3.7%

52.0%

67.1%

45.1%

1H11

3.9%

49.4%

66.0%

41.3%

1H12

2.8%

53.8%

68.6%

46.9%

2011

5.6%

53.3%

69.1%

45.9%

2008

48.9%53.1%51.1%54.5%52.9%53.6%Rental consolidated

5.1%

65.8%

40.6%

2Q12

3.6%

68.5%

46.1%

2Q11

1.1%

68.7%

41.9%

2009

4.6%

71.4%

43.4%

2006

5.5%

71.3%

46.0%

2007

13.2%Seminovos

65.5%Fleet rental

47.5%Car rental

2005Divisions

EBITDA R$ million

EBITDA margin in the 2Q12 was impacted by non-recurring expenses.

12

Financial crisis effectHot used car market

5,406.34,289.34,133.03,509.7

2,395.8

5,083.14,371.7

2,383.32,981.3

2005 2006 2007 2008 2009 2010 2011 Jan-Apr/12* 1H12*

5,468.2

2,062.31,683.91,536.0332.9

2,546.0 2,577.0939.1492.3

2005 2006 2007 2008 2009 2010 2011 Jan-Apr/12* 1H12** Annualized

* Annualized

Reflex of the

IPI reduction

Reflex of the

IPI reduction

Average depreciation per car

Financial crisis effectHot used car market

5,468.2

2,062.31,683.91,536.0332.9

2,546.0 2,577.0939.1492.3

2005 2006 2007 2008 2009 2010 2011 Jan-Apr/12* 1H12** Annualized

Reflex of the

IPI reduction

Depreciation was impacted by the decrease in car prices due to the IPI reduction...

13

10.7

74.083.4

137.6

291.6250.5

116.3127.4

190.2138.2

106.5

2005 2006 2007 2008 2009 2010 2011 1H11 1H12 2Q11 2Q12

16.4%

-39.4%-85.5%

Consolidated net incomeR$ million

…reducing the net income of the period.

137.6

(59.2)

(88.0)

(12.3)

(89.7)

386.8

1H11

83.4

(25.7)

(77.7)

(15.6)

(223.3)

425.7

1H12

(54.2)

33.5

10.3

(3.3)

(133.6)

38.9

Var. R$

-39.4%

-56.6%

-11.7%

26.8%

148.9%

10.1%

Var. %

(63.3)

34.3

11.1

(1.8)

(122.0)

15.1

Var. R$

41.1

(23.6)

(48.9)

(3.0)

(55.2)

171.8

Var. R$

291.6

(125.1)

(179.0)

(24.1)

(201.5)

821.3

2011

16.4%

23.3%

37.6%

14.2%

37.7%

26.5%

Var. %

116.3

(47.2)

(112.9)

(21.0)

(172.3)

469.7

2009

250.5

(101.5)

(130.1)

(21.1)

(146.3)

649.5

2010

-85.5%

-107.9%

-24.6%

28.6%

281.8%

7.5%

Var. %

10.774.0Net income

2.5(31.8)Income tax and social contribution

(34.1)(45.2)Financial expenses, net

(8.1)(6.3)Other property and equipment dep.

(165.3)(43.3)Car depreciation

215.7200.6Consolidated EBITDA

2Q122Q11EBITDA x net income Reconciliation

Excluding the additional depreciation, 1H12 net income would have reached R$149.5 million (8.6% above 1H11).

1414

Free cash flow - FCF

(5,868)9,17818,6498,6429,9307,95710,3467,342Fleet increase – quantity

(132.8)(239.3)(429.0)0.0(488.8)(272.9)(65.0)(219.5)Net capex for fleet growth

(132.8)32.7111.3241.1(188.9)(51.0)222.0 (25.5)Change in accounts payable to car suppliers (capex)

134.2(36.4)(48.2)(25.5)(54.6)11.5 (54.5)(49.5)Net capex for renewal

Free cash flow - R$ million 2005 2006 2007 2008 2009 2010 2011 1H12

EBITDA 277.9 311.3 403.5 504.1 469.7 649.5 821.3 425.7

Used car sales net revenues (446.5) (588.8) (850.5) (980.8) (922.4) (1,321.9) (1,468.1) (762.7)

Depreciated cost of used car sales (*) 361.2 530.4 760.0 874.5 855.1 1,203.2 1,328.6 687.7

(-) Income tax and social contribution (32.7) (42.7) (63.4) (52.8) (49.0) (57.8) (83.0) (54.9)

Working capital variation (24.2) (4.8) 13.3 (44.8) (11.5) 54.5 (83.9) (18.9)

Cash provided before capex 135.7 205.4 262.9 300.2 341.9 527.5 514.9 276.9

Used car sales net revenues 446.5 588.8 850.5 980.8 922.4 1,321.9 1,468.1 762.7

Capex of car - renewal (496.0) (643.3) (839.0) (1,035.4) (947.9) (1,370.1) (1,504.5) (628.5)

Capex – other property and equipment, net (28.0) (32.7) (23.7) (39.9) (21.0) (51.1) (63.0) (36.0)

Free cash flow before growth 58.2 118.2 250.7 205.7 295.4 428.2 415.5 375.1

Capex of car - growth (194.0) (287.0) (221.9) (299.9) (241.1) (540.3) (272.0) -

Free cash flow after growth (161.3) 53.2 (22.2) (283.1) 295.4 (0.8) 176.2 242.3

(*) Without tecnical discount deduction up to 2010 (see item 18 – Glossary)

Company is still presenting strong cash generation.

15

52.026.0

432.0562.0

303.5323.5161.8

16.5

2012 2013 2014 2015 2016 2017 2018 2019

Cash673,9

Debt profileR$ million

Debt profile in 06/30/2012- principal (R$ million)

Strong cash position and comfortable debt profile.

In the 1H12, all in spread was of 1.3p.p. above the Selic rate.

16

Changes in net debt in 1H12 (R$ million)

Net debt was reduced by R$108.5 million (-8.0%).

- 1,254.9

(78.9)

Interest

(54.9)

Dividends

Net debt 06/30/2012

FCF242.3

- 1,363.4

Net debt 12/31/2011

1717

5.5x4.6x5.0x4.2x3.8x5.4x4.8x3.3xEBITDA / Financial expenses, net

END OF PERIOD BALANCE 2005 2006 2007 2008 2009 2010 2011(**) 1H12 (**)

Net debt / Fleet value 60% 36% 51% 72% 57% 52% 51% 52%

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

Net debt / Equity 1.4x 0.7x 1.3x 2.0x 1.5x 1.4x 1.2x 1.1x

535.8 440.4765.1

1,254.51,078.6

1,281.1 1,363.4 1,254.9

900.21,247.7

1,492.91,752.6

1,907.8

2,446.7 2,681.72,391.2

2005 2006 2007 2008 2009 2010 2011 1H12

(*) annualized(**) From January 1st 2011, adress financial statements in IFRS

Debt – ratiosR$ million

Net debt Fleet value

The Company presents conservative indebtedness ratios.

18

Spread

8.5

8.60%

17.1%

0.59x

28.9%

2,445.3

2011

9.6

7.33%

16.9%

0.59x

28.6%

1,984.6

2010

8.2

8.84%

17.0%

0.53x

32.1%*

1,642.3

2008

4.0

7.59%

11.5%

0.53x

21.9%

1,702.3

2009

8.112.97.811.2 Spread (ROIC – Interest after tax) - p.p.

7.05%8.40%10.90%13.60%Interest on debt after tax

15.1%21.3%18.7%24.8%ROIC

0.61x0.58x0.55x0.67xTurnover of average capital investment (over rental net revenues)

24.9%*36.9%34.5%37.0%NOPAT margin (over rental net revenues)

2,645.61,137.5 986.2 606.3 Average capital investment - R$ million

1H12 a200720062005

Spread

13.60%10.90%

8.40% 8.84% 7.59% 7.33% 8.60%7.05%

24.80%

18.70%21.25%

17.03%

11.54%

16.94% 17.12%15.10%

2005 2006 2007 2008 2009 2010 2011 1H12

annualized

Cost of debt after tax ROIC

11.2p.p.7.8p.p. 12.9p.p.

8.2p.p.4.0p.p.

9.6p.p. 8.5p.p. 8.1p.p.

ROIC and spread reflect the Company’s competitive pricing strategy.

* Excludes additional fleet depreciation, following the concept recommended by Stern Stewart

19

Localiza ADR level I

�Ticker Symbol: LZRFY

�CUSIP: 53956W300

�ISIN: US53956W3007

�Ratio: 1 Ordinary Share : 1 ADR

�Exchange: OTC

�Depositary bank: Deutsche Bank Trust Company Americas

�ADR broker helpline: +1 212 250 9100 (New York)

+44 207 547 6500 (London)

�E-mail: adr@db.com

�ADR website: www.adr.db.com

�Depositary bank’s local custodian: Banco Bradesco S/A, Brazil

20

Disclaimer

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 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’smanagement, 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, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor

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

www.localiza.com/ir

E-mail: ri@localiza.com

Phone: +55 31 3247-7024