1

February 2nd, 2011

Localiza4Q10 Results

R$ million, USGAAP

2

4Q10 Highlights

Localiza continues presenting a superior performance.

R$ millions 2009 2010

2,551.3

1,225.3

649.5

250.5

20.4%

1,856.3

931.8

469.7

116.3

12.5%

Var. 4Q09 4Q10 Var.

Consolidated net revenue 37.4%

31.5%

38.3%

115.4%

7.9p.p.

551.1 738.2 34.0%

Net rental revenues 252.2 354.8 40.7%

EBITDA 128.9 188.3 46.1%

Net income 38.4 69.4 80.7%

Net income / Net rental revenues 15.2% 19.6% 4.4p.p.

Quantity 2009 201088,060

69.1%

47,285

70,295

68.8%

34,519

Var. 4Q09 4Q10 Var.End of period fleet 25.3%

0.3p.p.

37.0%

70,295 88,060 25.3%

Utilizatin rate – Car rental 64.5% 66.3%

Cars sold

1.8p.p.

11,335 12,799 12.9%

3

838.0607.8585.7

442.7357.2271.3

2005 2006 2007 2008 2009 2010

CAGR: 25.3%

151.1 140.8 148.9 167.0181.4 191.6 218.2 246.9

1Q 2Q 3Q 4Q

2009 2010

20.1% 46.5%36.1%

3,4114,668

5,7938,062

10,734

7,940

2005 2006 2007 2008 2009 2010

CAGR: 25.8%

1,952 1,889 1,986 2,2362,369 2,4882,863 3,015

1Q 2Q 3Q 4Q

2009 2010

21.4% 44.2%31.7%

33.1%

34.9%

47.8%

37.9%

Car Rental Division

Car Rental Division presented a strong growth in volume with daily rental rates increase.

Net revenue (R$ million)

# daily rentals (thousand)

4

149.2190.2 228.2

276.9 313.4374.5

2005 2006 2007 2008 2009 2010

CAGR: 20.2%

75.9 76.2 78.7 82.584.4 89.1 96.6 104.4

1Q 2Q 3Q 4Q

2009 2010

11.2% 22.7%16.9%

3,3514,188

5,1446,437 7,099

8,044

2005 2006 2007 2008 2009 2010

CAGR: 19.1%

1,780 1,710 1,758 1,8501,890 1,926 2,046 2,182

1Q 2Q 3Q 4Q

2009 2010

6.2% 16.4%12.6%

13.3%

17.9%

26.5%

19.5%

Fleet Rental Division

# daily rentals (thousand)

Net revenue (R$ million)

Fleet Rental Division had also presented strong growth.

5

Used car sales

Considering the Company’s growth perspective and the needs of fleet renewal,Seminovos network is being expanded to sell a larger volume of used cars.

# of sold cars

7,828 7,279 8,07711,33510,948 10,679

12,859 12,799

1Q 2Q 3Q 4Q

2009 2010

18,763 23,17430,093 34,281 34,519

47,285

2005 2006 2007 2008 2009 2010

CAGR: 20,3%

39.9%46.7% 59.2%37.0%

12.9%

# of stores

1326

32 35

49 55

2005 2006 2007 2008 2009 2010

+ 13 + 6 + 3 +14+6

6

31,373 35,686 39,112 47,517 61,44511,76214,630 17,790 23,403

22,77826,615

24,103

2005 2006 2007 2008 2009 2010

CAGR: 19.7%

35,86546,003 53,476

62,515 70,29588,060

25.3%

End of period fleet

Car rental Fleet rental

17,765 cars were added to the fleet in 2010.

7

446.1 416.5 442.5 551.1563.9 575.6 673.6 738.2

1Q 2Q 3Q 4Q

2009 2010

876.91,145.4

1,531.71,855.7 1,856.3

2,551.3

2005 2006 2007 2008 2009 2010

CAGR: 23.8%

26.4%38.2% 52.2%

34.0%

37.4%

Consolidated net revenuesR$ million

Quarterly evolution

In 2010, consolidated net revenue had the highest growth since the IPO.

8

EBITDA R$ million

Divisions 2005 2006 2007 2008 2009 2010

43.4%

65.6%

50.2%

2.6%

44.3%

67.0%

51.5%

5.5%

4Q09 4Q10

41.8%

67.2%

Rentals consolidated 51.0% 51.2% 52.6% 49.3% 50.6% 49.4%

3.4%

43.0%

65.9%

0.4%

40.3%

66.5%

1.1%

42.0%

69.1%

4.6%

44.5%

68.7%

5.4%

Car rental 45.3%

Fleet rental 62.3%

Used car sales 13.2%

Consistent EBITDA margins.

277.9 311.3403.5

504.1 469.7

649.5

128.9 188.3

2005 2006 2007 2008 2009 2010 4Q09 4Q10

CAGR: 18.5%

38.3%46.1%

In 2010, EBITDA growth was also the highest since the IPO.

9

Average depreciation per carR$

1,536.0

332.9

2,546.0 2,577.0

939.1492.3

2005 2006 2007 2008 2009 2010

Car rental

3,509.72,981.3

2,383.3

4,371.75,083.1

2,395.8

2005 2006 2007 2008 2009 2010

Fleet rental

-40.4%

-19.7%

Depreciation presented a significant drop in 2010.

Warm used car market

Financial crisis reflectionNormal market

conditions

10

69.438.4

250.5

116.3127.4190.2

138.2106.5

2005 2006 2007 2008 2009 2010 4Q09 4Q10

Consolidated net incomeR$ million

The strategies adopted by the Company resulted in a substantial increase of net income.

80.7%

Net income per division (*) 2005 2006 2007 2008 2009 2010 4Q09 4Q10

77.3

27.1

2.1

106.5

24.8%

74.6 17.9

61.7

1.9

42.8149.2

138.2

19.4

119.6

Franchising 4.3 4.0

68.0

2.6

24.9

190.2

1.1

95.6

5.7

250.5

1.7

24.9% 28.0%

69.4

20.4%

Consolidated 127.4 116.3 38.4

19.6%15.2%

52.2

60.1

12.5%

Car rental 96.2

Fleet rental 26.9

Margin over rental revenue 14.6%

* Used cars sales result is allocated in the rental divisions

115.4

%

11

Free cash flow - FCF

45.0% increase in cash generation before growth and interest.

Free cash flow - R$ millions 2005 2006 2007 2008 2009 2010

469.7 649.5

(1,326.0)

1,203.2

(57.8)

54.5

523.4

1,326.0

(1,370.1)

-

(44.1)

(51.1)

428.2

(540.3)

111.3

(0.8)

Fleet increase (quantity) 7,342 10,346 7,957 9,930 8,642 18,649

(924.5)

855.1

(49.0)

(11.5)

339.8

924.5

(963.1)

15.2

(23.4)

(21.0)

295.4

(241.1)

241.1

295.4

504.1

(983.2)

874.5

(52.8)

(44.8)

297.8

983.2

(1,035.4)

-

(52.2)

(39.9)

205.7

(299.9)

(188.9)

(283.1)

EBITDA 277.9 311.3 403.5

Used car sales revenues (448.2) (590.3) (853.2)

Cost of used car sales (*) 361.2 530.4 760.0

(-) Income tax and social contribution (32.7) (42.7) (63.4)

Working capital variation (24.2) (4.8) 13.3

Cash provided before capex 134.0 203.9 260.2

Used car sales revenues 448.2 590.3 853.2

Capex of car – renewal (496.0) (643.3) (839.0)

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

Net capex for renewal (47.8) (53.0) 14.2

Capex - Property and equipment, net (28.0) (32.7) (23.7)

Free cash flow before growth and interest 58.2 118.2 250.7 Capex of car – growth (194.0) (287.0) (221.9)

Change in amounts payable to car suppliers (capex) (25.5) 222.0 (51.0)

Free cash flow before interest (161.3) 53.2 (22.2)

(*) without technical discount deduction

12

Net debt grew 18.8% or R$202.5 million that were invested in the fleet expansion.

Net debt reconciliationR$ million

-1,281.1(166.8)Interest

(34.9)Dividends

Net debt12/31/2010

FCF before growth428.2

-1,078.6

Net debt12/31/2009

(429.0)Investment in fleet increase

13

Debt – profile and costsR$ million

Debt amortization profile has improved substantially.

269.6122.0

284.8 238.0 264.0250.7202.6

2010 2011 2012 2013 2014 2015 2016 2017

Cost 2010 2011 2012 2013 2014 2015 2016 2017 Total

Working capital 111.1% to115.0% of CDI and CDI + 1.5%pa -

-

-

-

-

-

Interests accrued until 12/31/2010, net of interest paid - 65.1 - - - - - - - 65.1

- 58.0 78.0 55.0 75.0

(415.7)

(350.6)

456.0

Debenture 2nd Issuance CDI + 0.6%pa - 66.6 66.6 66.8 -

-190.0

-

74.0

-

Commercial Papers 5th Issuance 108.0% of CDI 200.0 - - - - - - 200.0

Cash and equivalents on 12/31/2010 - - - - - - - (415.7)

200.0

Debenture 4th Issuance 114.2% of CDI - 24.0 24.0 63.0 63.0

-

-

122.0

-

-

370.0

Debenture 1st Issuance: Total Fleet CDI + 2.0%pa - 100.0 100.0 100.0 100.0 400.0

Other TJLP + 3.8%pa / CDI + 2.3%pa 2.6 2.1 1.0 - - 5.7

264.0 122.0 Net debt - 202.6 250.7 269.6 284.8 238.0 1,281.1

415.7Cash

14

Debt – ratiosR$ million

Indebtedness ratios improved even further in 2010.

535.8 440.4765.1

1,254.5 1,078.6 1,281.1900.2

1,247.7 1,492.9 1,752.6 1,907.82,446.7

2005 2006 2007 2008 2009 2010

Net debt Fleet value

BALANCES AT THE END OF THE PERIOD 2005 2006 2007 2008 2009 2010

Net debt / Fleet value (USGAAP) 60% 36% 51% 72%

2.5x

2.0x

52%

Net debt / EBITDA (USGAAP) 1.9x 1.4x 1.9x

57%

2.3x 2.0x

Net debt / Equity (USGAAP) 1.4x 0.7x 1.3x 1.5x 1.4x

15

Spread

Localiza continues presenting an exceptional performance.

2005 2006 2007 2008 2009

Average capital investment - R$ millions 606.3 986.2 1,137.5 1,642.3

32.1%

0.53x

17.0%

8.2%

8.8

1,984.6

NOPAT margin (over rental revenue) 35.2% 33.4% 35.6%

1,702.3

21.1%

0.55x

11.5%

7.8%

27.4%

Turnover of average capital investment (over rental revenue) 0.71x 0.56x 0.60x 0.62x

ROIC 24.8% 18.7% 21.3% 16.9%

Interest on debt after tax 13.6% 10.9% 8.4% 7.8%

Spread (ROIC – Interest after tax) - p.p. 11.2 7.8 12.9 3.7 9.1

2010

13.6%10.9%

8.4% 8.2% 7.8% 7.8%

16.9%

11.5%

24.8%18.7%

21.3%17.0%

2005 2006 2007 2008 2009 2010

Interest on debt after tax ROIC

11.27.8 12.9

8.8 3.79.1

16

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.