1

Localiza Rent a Car S.A.2Q08 results presentation

(R$ million - USGAAP)

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Seminovos

21,550 14,347

13,941

16,987

2Q07 2Q08

209.5 157.0

222.8 174.1

2Q07 2Q08

53.6

38.4

2Q07 2Q08

123.6 85.5

2Q07 2Q08

EBITDA

331.1

432.328,288

38,53736.2%

33.4%

44.6%39.6%

21.8%

50.2%

30.6%

28.0%

R$

mill

ion

2Q08 highlights

Net revenue

Net income

Average rented fleet

Qua

ntity

R$

mill

ion

R$

mill

ion

Car rental Fleet rental Rental

Localiza is still presenting a strong growth with excellent results.

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141.0

98.7 78.6

58.2 41.9

2Q04 2Q05 2Q06 2Q07 2Q08

66.0 56.3

46.6 34.5 31.4

2Q04 2Q05 2Q06 2Q07 2Q08

Revenues evolutionR$ million

CAGR: +35.4% CAGR: +20.4%

Car Rental Fleet Rental

17.2%42.9%

68% of the revenues came from the car rental division and 32% from the fleet rental division.

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EBITDA margin per division

Divisions 2004 2005 2006 2007

41.9%

69.1%

51.2%

4.6%

56.1%

2Q082Q07

44.5% 37.8%

68.7%

48.9%

5.0%

54.5%

68.7%

52.6%

5.4%

59.5%

Car Rental and Franchising 39.3% 45.0% 46.4%

Fleet Rental 63.4% 62.3% 66.4%

Rental and franchising – consolidated 48.6% 51.0% 52.7%

Used car sales 12.0% 13.2% 5.9%

Total EBITDA / rental and franchising revenues 59.6% 64.8% 59.0%

2Q08 EBITDA breakdown

Car rental53.9%Fleet rental

35.4%

Seminovos10.7%

Consistent EBITDA margins both in car rental and fleet rental divisions.

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Gains of scale in the car rental division

2Q07 2Q08

Direct costs45.8%

SG&A16.4%

EBITDA37.8%

Direct costs42.0%

SG&A11.6%

EBITDA46.4%

Organic growth Gains of scale Higher EBITDA margin

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22.226.1

33.538.1

9.3

23.6

7.5

16.415.718.8

23.230.1

14.9 17.0

6.0 7.7

2004 2005 2006 2007 1H07 1H08 2Q07 2Q08

493.1690.0

930.31,060.9

274.6303.0448.2

590.3418.3 475.7

210.6

700.3853.2

174.1

491.7

222.8

2004 2005 2006 2007 1H07 1H08 2Q07 2Q08

Purchased Sold

Investment in fleet

7.3

10.3

6.5

8.0

241.8340.0

190.1

207.7

36.5

252.9

(5.6)

6.6

(143.7)

208.6

1.5

8.7

Quantity - thousands

Net investment *(R$ million)

* Includes accessories

The strong growth required the acquisition of 8,703 cars and a net investment of R$ 252.9 million.

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55.4%68.4% 72.9% 72.8%

2Q05 2Q06 2Q07 2Q08

Fleet evolution

Utilization rate evolutionCar rental

19,531 24,103 31,373 35,68624,577

39,3149,168

11,76214,630

17,790

15,582

20,376

2004 2005 2006 2007 1H07 1H08

Car rental Fleet rental

28,66935,865

46,00353,476

40,159

59,690CAGR: +23.1%

60.0%

30.8%

48.6% +17.4p.p.

Strong growth in fleet without loosing productivity.

End of period fleet *

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

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Free cash flow before growth

118.2

52.0 58.2107.4

250.7

0.6p.p0.6p.p.0.9p.p.

3.7p.p.

9.8p.p.

-5 0

5 0

1 5 0

2 5 0

3 5 0

2004 2005 2006 2007 1H08 -2 %

3 %

8 %

1 3 %

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

1H08205.5

(19.1)(69.8)

(9.2)107.4

(196.3)61.5

(27.4)

(1) The balance to be paid to automakers (capex) was transferred from working capital to adjust the Car capex investment (growth).

Net capex for vehicle renewal (100.6) (134.8) (112.9) (79.0)

Amount of renewed vehicles 15,715 18,763 23,174 30,093

Average capex for vehicles renewal – per car (6.4) (7.2) (4.9) (2.6)

(69.8)

17,008(4.1)

11.9% 103.1%

112.1%

The cash generated before growth totaled R$ 107.4 million.

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Net debt reconciliation

Net debt on 12/31/2007

-767.9 -911.0

FCF before growth

Capexgrowth

Net debt on 06/30/2008

InterestsDividendsStocks repurchased

-48.5-39.4-27.8

-134.8

107.4

Debt increased R$ 143.1 million due to strong growth and stock repurchase.

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539.5 443.1767.9

612.2

1,247.71,492.9

1,718.3

281.3

911.0900.2

2004 2005 2006 2007 1H08

Net debt Fleet value

END OF PERIOD BALANCES 2004 2005 2006 2007 1H08

Net debt / fleet 46% 60% 36% 51% 53%

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

Net debt / EBITDA (BRGAAP) 1.1x 1.5x 1.0x 1.4x 1.3x*

Net debt / market cap 35% 30% 10% 20% 26%

* Annualized

Localiza continues to present solid balance and low leverage ratio.

Net debt x fleet value

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EVA

(1) Margin and turnover calculated over rental revenue. (2) Cost of debt after taxes

2004 2005 2006 2007 1h07 1h08

Average investment capital– R$ million 507.4  606.3  986.2  1,137.5  1,109.7  1,476.6

NOPAT margin (1) 37.8% 35.2% 33.4% 35.6% 34.4% 35.1%

Turnover of average investment capital (1) 0.65x  0.70x  0.56x  0.60x  0.28x  0.28x 

ROIC 24.6% 24.8% 18.7% 21.3% 9.8% 9.8%

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

Cost of equity 20.0% 16.2% 11.0% 11.5% 11.5% 11,3%

Nominal WACC 16.9% 15.7% 11.0% 11.2% 5.6% 5.5%

Spread (ROIC ‐WACC) ‐ p.p. 7.7  9.1  7.7  10.1  4.2  4.3

EVA ‐ R$ million 39.2 55.5 76.2 114.3 46.5 63.5

EVA increase – R$ million ‐ 16.3 20.7 38.1 ‐ 17,0

EVA WACC ROIC

39.2

76.2

55.5

114.3

18.7%24.8%24.6%

21.3%16.9% 15.7%

11.0% 11.2%4 0

8 0

1 2 0

2004 2005 2006 2007

0 %

1 0 %

2 0 %

3 0 %

63.546.59.8% 9.8%

5.5%5.6%3 0

6 0

9 0

1H07 1H08

0 %

1 0 %

2 0 %

41.6%

37.3%

50.0%

36.6%

Gains of scale contributed to the increase of the operating profit margin.

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0

5

10

15

20

25

23-May 16-Aug 11-Nov 8-Feb 10-May 3-Aug 30-Oct 31-Jan 30-Apr 26-Jul 22-Oct 23-Jan 23-Apr0

20

40

60

80

100

120

Volume RENT3 RENT3 IBOVESPA

4.57

10.5813.54

9.16

2005 2006 2007 1H08

RENT3: Performance

+196%

Performance RENT3 IBOV

2005 +149% +38%

2006 +124% +33%

2007 -12% +44%

2008 -6% +2%

Since IPO +362% +169%

Localiza was elected the 35th Most Valuable Brand in Brazil - 2008, by Isto É Dinheiro magazine.

362%

169%

Since IPO until 06/30/2008

Performance RENT3 x IBOVAverage daily traded volume (R$ million)

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Thank you!