1

3Q08 results presentation (R$ million - USGAAP)

Localiza Rent a Car S.A.

2

Average rented fleet

6,654 9,402 12,842 15,937 14,90421,4487,796

9,30811,635

14,295 13,973

17,069

2004 2005 2006 2007 Up to sep/07 Up to sep/08

Qua

ntity

24,47718,710

14,450

41.3% 36.6%

19.4%24.1%

25.0%

30,232

38,517

22.9%

43.9%

22.2%

33.4%CAGR: 27.9% 28,877

Average rented fleet evolution

3Q08 growth still strong...

Car rental Fleet rental

Car rental

15,653

22,700

3Q07 3Q08

Qua

ntity

Fleet rental

14,65218,532

3Q07 3Q08

Qua

ntity45.0%

26.5%

3

Revenues evolution

...reflecting in the revenue increase...

Fleet rental

58.473.2

3Q07 3Q08

R$

mill

ion

Car rental

108.0

151.9

3Q07 3Q08

R$

mill

ion 40.6%

25.3%

Net revenue

331.4 428.7 555.1 678.5484.7 638.6

168.3 227.5

794.7

214.5302.9

632.8

853.2

590.3

303.0

448.2

2004 2005 2006 2007 Up to Sep/07 Up to Sep/08 3Q07 3Q08

R$ m

illio

n

29.4% 29.5% 22.2% 31.8%634.4

876.9

1,145.4

1,531.7

1,117.5

1,433.328.3%

CAGR: 34.2%

382.8530.4

38.6%

35.2%

Rental Used car sales

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EBITDA per quarter

98.1 85.5104.6

120.9 123.6 133.9

1Q 2Q 3Q

R$

mill

ion

2007 2008

EBITDA evolutionEBITDA

161.0 218.8284.4

357.1253.8

327.036.559.1

26.9

46.4 51.3

34.5

2004 2005 2006 2007 Up to Sep/07 Up to Sep/08

R$ m

illio

n

197.5

277.9311.3

403.5

288.3

378.3

35.9% 30.0% 25.6% 28.8%

31.2%CAGR: 26.9%

28.0%

8.3%

...maintaining strong profitability...

Rental Used car sales

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EBITDA margin per division

Divisions 2004 2005 2006 2007 Up to sep/07 Up to sep/08

44.3%

66.3%

51.2%

6.5%

59.2%

43.7%

68.7%

52.4%

5.5%

59.5%

41.9%

69.1%

51.2%

4.6%

56.1%

3Q083Q07

44.5% 46.0%

71.9%

55.0%

5.6%

62.2%

68.7%

52.6%

5.4%

59.5%

Car Rental 39.3% 45.0% 41.9%

Fleet Rental 63.4% 62.3% 69.7%

Rentals consolidated 48.6% 51.0% 50.8%

Used car salesSeminovos 12.0% 13.2% 6.0%

Total EBITDA / rental revenues 59.6% 64.8% 58.9%

Car Rental49% Fleet Rental

39%

Franchising1%

Used Car Sale11%

...and consistent margins.

EBITDA Breakdown - 2007

Car Rental50% Fleet Rental

35%

Franchising1%Used Car Sale

14%

EBITDA Breakdown – 2008 YTD

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2007 2008

Net income per quarter

45.438.4

50.453.5 53.6 50.1

1Q 2Q 3Q

R$

mill

ion

Net income evolutionNet income

138.2

106.590.6

190.2

134.3157.2

2004 2005 2006 2007 Up to Sep/07 Up to Sep/08

R$

mill

ion

CAGR: 28.0%

17.1%

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22,18226,105

33,52038,050

21,638

41,499

15,71518,763

23,17430,093

22,58527,635

2004 2005 2006 2007 Up to Sep/07 Up to Sep/08

Purchases Sales

Fleet: purchases and salesQ

uant

ity

The growth of 7,240 cars in the 3Q08...

6,4677,342

10,.3467,957

(947)

13,864

Purchases and sales per quarter

7,213

16,419 17,867

9,292 7,71610,627

1Q08 2Q08 3Q08

Qua

ntity

(2,079)

8,7037,240

8

493.1690.0

930.31,060.9

1,238.3

303.0448.2

590.3853.2 794.7

607,0 632,8

2004 2005 2006 2007 Up to Sep/07 Up to Sep/08

R$

mill

ion

Purchases Sales* Includes accessories

190.1241.8

340.0207.7

(25.8)

443.6

Fleet: net investment

Net investment *

...demanded a net investment of R$ 235.1 million.

Net investment per quarter

224.6

475.7538.0

268.9 222.8302.9

1Q08 2Q08 3Q08

(44.3)

252.9235.1

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19,531 24,103 31,373 35,686 28,08044,2159,168

11,76214,630

17,79016,600

22,481

2004 2005 2006 2007 Up to Sep/07 Up to Sep/08

Qua

ntity

57.5%

Fleet: utilization rate

End of period fleet *

Utilization rate evolutionCar Rental Division

* Losses from theft and accidents are deducted from the fleet at the end of period

The purchases will be reduced in the 4Q08 so the utilization rate returns to previous level.

28.69935.865

46.00353.476

44.680

66.696

23.4% 30.2% 13.7%

49.3%CAGR: 23.1%

Car rental Fleet rental

68.3% 70.5% 66.1%69.3%

Up to Sep/07 Up to Sep/08 3Q07 3Q08

28.3% 24.4% 21.6% 35.4%

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-86.9-46.7-30.1

-405.9

-51.8-35.5-34.7-119.8

378.3

-767.9 -1.201.0

Capexrenewal

InterestDividendsWorkingcapitalEBITDA Capex

otherTaxes Capex

growthStock

repurchase

FCF before growth

+ 136.5

- 436.0 - 133.6Discretionaryinvestments

Dividends andInterests on equity

Net debt reconciliation

Net debt12/31/2007 Net debt

09/30/2008

The increase of the debt was due to the strong growth in fleet.

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281.3539.3 443.1

767.9612.2

900.2

1,247.71,492.9

1,956.9

1.201,0

2004 2005 2006 2007 Up to Sep/08

R$ m

illio

n

Net debt x fleet valu

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

The fleet reduction on 4,000 cars will be destined to the payment of the debts with maturity in 2008 and 2009.

Net debt Fleet value

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118.2

52.0 58.2

250.7

136,5

0,6p.p.0,6p.p.0,9p.p.

3,7p.p.

9,8p.p.

0

1 0 0

2 0 0

3 0 0

2004 2005 2006 2007 Up to Sep/08

R$

mill

iion

0 .0 %

3 .0 %

6 .0 %

9 .0 %

1 2 .0 %

Free cash flow before growth Real increase in new car prices

Free cash flow - FCF

Free cash flow – FCF   (R$ million) 2004 2005 2006 2007EBITDA after taxes 156.6 245.2 268.6 340.1

13.3(79.0)

(23.7)250.7

(221.9)

Change in amount payable to cars suppliers (capex) (1) (21.9) (25.5) 222.0 (51.0)

(22.2)

Working capital variation (1) 6.2 (24.2) (4.8)

Net car capex ‐ renewal (100.6) (134.8) (112.9)

Capex ‐ other (10.2) (28.0) (32.7)

Free cash flow before growth 52.0 58.2 118.2

Net capex for vehicles ‐ growth (143.8) (194.0) (287.0)

Free cash flow (113.7) (161.3) 53.2

Up to  Sep/08326.5

(35.5)(119.8)

(34.7)136.5

(413.7)7.8

(269.4)

(1) O saldo a pagar aos fornecedores de carros (capex) foi transferido de capital de giro para ajuste do investimento em Capex de carros (crescimento).

11.9% 103.1%

112.1%

Capex for growth in 2008 will be reduced by the decrease of 4,000 cars in the fleet.

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EVA

2004 2005 2006 2007 Up to Sep/07 Up to Sep/08

Average investment capital– R$ million 507.4  606.3  986.2  1.137.5  1.123.0  1.547.9

NOPAT margin (1) 37.8% 35.2% 33.4% 35.6% 35.7% 34.5%

Turnover of average investment capital (1) 0.65x  0.70x  0.56x  0.60x  0.43x  0.41x 

ROIC 24.6% 24.8% 18.7% 21.3% 15.4% 14.2%

Cost of debt (2)(3) 11.6% 13.6% 10.9% 8.4% 8.4% 8.2%

Cost of equity(3) 20.0% 16.2% 11.0% 11.5% 11.5% 11.3%

Nominal WACC(3) 16.9% 15.7% 11.0% 11.2% 8.4% 8.2%

Spread (ROIC ‐WACC) ‐ p.p. 7.7  9.1  7.7  10.1  7.0  6.0 

EVA ‐ R$ million 39.2 55.5 76.2 114.3 78.5 93.5

EVA increase – R$ million ‐ 16.3 20.7 38.1 ‐ 15.0

The adjustment of the rates and the reduction of the fleet will contribute to the increase of the ROIC.

114.3

55.5

76.2

39.2

78.5 93,5

11.2%16.9% 15.7%

11.0% 8,2%8.4%

21.3%18.7%24.8%24.6%

15.4% 14.2%

2 0 .0

6 0 .0

1 0 0 .0

1 4 0 .0

2004 2005 2006 2007 Up to Sep/07 Up to Sep/08

1 .0 %

1 1 .0 %

2 1 .0 %

3 1 .0 %

EVA(*) (R$ million) Nominal WACC ROIC

41.6%37.3%

50.0% 18.9%

(1) Margin and turnover calculated over rental revenue. (2) Cost of debt after taxes. (3) Calculated using long term premises

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4.57

10.58

13.54

8.86

2005 2006 2007 Up to Sep/08

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5

10

15

20

25

Pric

e

0

20

40

60

80

100

120V

olume

Volume RENT3 RENT3 IBOVESPA

RENT3: Performance

Localiza was elected the best public-held company in the governance ranking on a survey conducted by FEA-USP (Capital Aberto Magazine)

159%

105%

From IPO to 09/30/2008

Average daily traded volume (R$ million)

RENT3 x IBOV Performance

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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 inflation;

5. To adjust the Company growth in line with cash generation.

Concluding: To maximize the use of the resources searching the best results

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Thanks!