apresentação 3 q06

0

Presentation of 3Q06 results(R$ million - USGAAP)

Localiza Rent a Car S.A.

1

3Q06 Highlights

62.8% net income growth

71.8% car rental utilization rate

40.5 % increase in car rental business volume

23.2 % increase in fleet rental business volume

31.2 % increase in car rental EBITDA (excluding used cars sales results)

37.9 % increase in fleet rental EBITDA (excluding used cars sales results)

64th stock in the IBrX – Brazilian index

2

155 197 271

69 93

192213

370

97 99

2003 2004 2005 3Q05 3Q06

Car Rental Performance(R$ million. USGAAP)

Daily Rentals (thousand)

Used Cars Sales Car Rental

EBITDA

Net Revenue

72

117

179

43 44

347410

641

166 191

31

Net Income

53

78

1718

34%

31% 55%

41%1,839

2,413

3,411

8761,231

2003 2004 2005 3Q05 3Q06

5384

126

31 41

19

33

53

12 3

2003 2004 2005 3Q05 3Q06

3452

80

19 30

(2.9)

1.1

(2.3) (2.0) (11.3)2003 2004 2005 3Q05 3Q06

3

(R$ million. USGAAP)

Fleet Rental Performance

EBITDA


Used Cars Sales Fleet Rental

7890 103

2735

Net Income

Net Revenues

179218 227

6094

36 37 27

518

23%

26%

60%38%

3,1192,806

3,351

869 1,071

2003 2004 2005 3Q05 3Q06

74 83 95

25 34

47

8

21

2003 2004 2005 3Q05 3Q06

120 128 149

39 49

5990

78

2145

2003 2004 2005 3Q05 3Q06

51 57 63

1626

(8)(11)(36)(15) (20)2003 2004 2005 3Q05 3Q06

4

(R$ million, USGAAP)

EBITDA Margin per Segment

28.0%31.1%32.6%33.1%28.6%TOTAL

47.4%47.4%47.6%41.5%43.6%Franchising

2.8%11.7%13.7%13.2%9.2%Used car sales

53.4%52.1%52.5%51.5%46%Rentals

37.9%44.2%45.3%41.7%43.4%TOTAL

2.9%7.9%10.5%8.2%7.3%Used car sales

70.1%64.2%63.6%65.2%61.2%Rentals

22.9%26.2%27.9%28.4%20.7%TOTAL

2.7%12.5%14.4%15.3%9.7%Used Cars Sales

44.5%45.3%46.3%42.6%34.3%Rentals

Margin MarginMarginMarginMargin3Q063Q05200520042003

Con

solid

ated

Flee

tRen

tal

Car

Ren

tal

5

4,959 5,2196,762

1,7452,301

2003 2004 2005 3Q05 3Q06

Consolidated Performance(R$ million, USGAAP)

EBITDA


* Pro forma result disregarding mark-to-market (MTM) of derivatives contracts

Net Revenues

Net Income

Margin 12.9% * 14.3% 12.2% 9.8% 12.7%

527628

869

226285

13% 63%

26%

152

210

286

7079

32%

276 325 421

108 141

251303

448

144118

2003 2004 2005 3Q05 3Q06

69

91107

2236

2003 2004 2005 3Q05 3Q06

127167

221

56 75

23

40

61

14 4

2003 2004 2005 3Q05 3Q06

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Reconciliation of Net Income

-1.0

Net Income3Q05

Net Income3Q06

22.3

+58.7Revenues

-44.4Costs

-3.2SG&A

Depreciation-4.9

+9.0+33.4 -11.2Interest

Taxes

36.3

-1.2

+62.8%

25.3 -33.2

Rental = +19.2 millionUsed cars sales = - 9.8 million

+1.8

EBITDA change = + 9.4 million

Change in other items = + 4.6 million

-1.7

StockOptions-1.4

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Cash Flow

70.8 193.6

Cash and cashequivalents at thebeginning of 2006:

Cah and cashequivalents on

09/30/06281.7

-158.9

OperatingActivities

Financing andInvestmentActivities

Investment activities include fleet (renewal: 14,861 cars and growth: 2,853)

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Net Debt (R$ million) USGAAP


Indebtedness Profile

S&P Rating - BrA / Positive outlook

0.570.951.370.960.36Net debt / equity

34%49%60%46%22%Net debt / fleet

9M069M05200520042003

87

281

539349.3 351.3

2003 2004 2005 9M05 9M06

The Company is prepared for a new growth cycle.The Company is prepared for a new growth cycle.

9

251 303448

118 144288

493

690

105

334

2003 2004 2005 3Q05 3Q06

Fleet Investment

Fleet Growth (thousand)Net Investment

Sold Cars Bought Cars

Investments - (R$ million. USGAAP) Quantity - thousand

2003 2004 2005 3Q05 3Q06

(R$ million. USGAAP)

177.0-194.1143.8-

13.0-12.947.746.337.4 +6.4-1.3+7.3+6.2-0.4

2003 2004 2005 3Q05 3Q06

Renewal

Growth

15.718.8

5.0

22.226.1

3.6

15.5

5.6

15.112.0

2003 2004 2005 3Q05 3Q06

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Economic Value Added (EVA)

-9.1%8.3%10.8%0.6%Spread

-5.2p.p.9.1%10.5%10.9%14.3%Real WACC (excluding inflation)

-5.9p.p.2.5%4.0%5.4%8.4%Sovereign risk

-7.6p.p.15.7%19.0%16.2%23.3%Average CDI (iunterbank CD)

26.9%*2.0%5.7%7.6%9.3%IPCA (consumer inflation index)

62.8%*26.224.619.516.4Average price per car R$

Change2006A200520042003

In the last 3 years the spread between ROIC and WACC has shown little volatilityIn the last 3 years the spread between ROIC and WACC has shown little volatility

R$ / thousand

* 9M06

1,781

44.486

57,384

82,736

12.0%

24.1%18.4%

15.8%

21.1%

24.1%29.3%24.6%

-

20,000

40,000

60,000

80,000

100,000

2003 2004 2005 20060.0%

10.0%

20.0%

30.0%

EVA Nominal WACC ROIC

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ROE – Return on Equity

NB: The 2006 figure was annualized based on the results of the first nine months, already considering the proceeds from the shares offering. ROE was arrived at by dividing net income by average shareholders’ equity for the year’, excluding net profit from the respective year.In 2003, the mark-to-market of derivative contracts was excluded from net income.

Localiza is ranked 13th, among the 500 largest companies in Brazil, in terms of ROE. (FGV ranking)

Localiza is ranked 13th, among the 500 largest companies in Brazil, in terms of ROE. (FGV ranking)

38.6% 38.9%36.7%

30.4%

2003 2004 2005 2006

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101520253035404550

23-May 21-Jun 19-Jul 16-Aug 14-Sep 13-Oct 11-Nov 12-Dec 10-Jan 8-Feb 10-Mar 7-Apr 10-May 7-Jun 6-Jul 3-Aug 31-Aug 29-Sep020

406080

100120

Volume RENT3 RENT3 IBOVESPA

Performance - RENT3

Average daily trading volume in the 3Q06 R$ 8.4m

Performance: RENT3 2006 + 86% X IBOV 2006: + 16%

RENT3 X IBOV 359%

61%

From 05/23/05 (IPO) to 10/19/06.

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Disclaimer – Information and Projections

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.

It is not allowed to offer or sell in the United States securities not registered or exempted from registration. in accordance with the Securites Act of 1933. Any securities offering to be conducted in United States must be made through an offering memorandum. which can be obtained with the underwriters. The offering memo must contain or include reference to detailed information about LOCALIZA and its business and financial results. in addition to its financial statements.

This presentation does not constitute an offering. invitation or offering request or acquisition of any type of securities. Neither this presentation nor anything here included represent the terms of a contract or commitment of any kind.

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.

It is not allowed to offer or sell in the United States securities not registered or exempted from registration. in accordance with the Securites Act of 1933. Any securities offering to be conducted in United States must be made through an offering memorandum. which can be obtained with the underwriters. The offering memo must contain or include reference to detailed information about LOCALIZA and its business and financial results. in addition to its financial statements.

This presentation does not constitute an offering. invitation or offering request or acquisition of any type of securities. Neither this presentation nor anything here included represent the terms of a contract or commitment of any kind.

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Thank You!

Localiza IR:www.localiza.com/riPhone: +55 (31) 3247-7039

apresentação 3 q06

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