4 Q05 Analystand Investors Meeting

1

4Q05 Public Meeting

2

Integrated Business Platform: Overview

3

Geographic Distribution

310 Agencies9 Countries

2003 2004 2005

11783

71

Owned Agencies

4

Localiza X Competitors(# of agencies in Brazil)

CITY AIRPORT

181

73

55

27

49

30

40

3059

3

254

82 7970 62

Source: Competitors website in March, 2006

Localiza is larger than the second, third and fourth (summed) main competitors in number of total agencies

5

Market Strategy: Consolidation

2004 Market Share 2005 Market Share

Localiza16%

Localiza18%

Localiza increased its market share to 18% based on rentalrevenues in 2005

Source: ABLA announced 8% of market growth estimate in 2005 Localiza company grew by 29.4% in 2005

6

4Q05 and 2005 Results Presentation

Localiza Rent a Car S.A.

(R$ million - USGAAP)

7

2005 Highlights

38.2% increase in net revenue, reaching R$ 877 million

Net income of R$ 106.5 million in 2005 (17.6% higher than 2004)

EBITDA of R$ 285.8 million (36.1% higher than 2004)

41.4% increase in car rental business volume

19.4% increase in fleet rental business volume

2 p.p. market share increase

Troféu Transparência 2005 (Transparency Award 2005) (ANEFAC, Non PublicCompany category)

Best performance among the Latin America IPOs in 2005 (Economática)

One of the 100 most traded shares in BOVESPA in 2005

8

Car Rental Performance

Car Rental – Dailies - thousand

+45.0%

2,4131,839

2003 2004

TCAC: +36.2%

714

4Q04 4Q05

1,035

32.3%25.8%27.9%28.4%20.7%EBITDA Margin

3,411

2005

Car Rental – Net Revenue

+16% +56%

2004 2005 4Q04 4Q05

80

57

79137

159

+40% 80

213

197

370410

641

+38% 271

Car Rental - EBITDA

4Q04 4Q05

11

24

635

51

+88% 45

+53%

26

91

40117

179

139

20052004

+46%

ROE

ConsolidatedPerformance

Performance per Segment

Net Income

Investment

In Fleet

Indebtedness

RENT3 Performance

188155

343

2003 2003

1359 91

+53% 74

+41.4%

(R$ million, USGAAP)

Used Cars Car Rental

9

Fleet Rental Performance

2003

2,8063,119

2004

TCAC: +3.7%

706

4Q04 4Q05

+35.1%954

Fleet Rental – Dailies - thousand

3,351

2005

Fleet Rental – Net Revenue Fleet Rental - EBITDA

2003 2005 4Q04 4Q05

123

02427

+17% 27(1.3)

92

(0.2)91103

+12% 103

+13%

+13%

43.5%44.6%45.3%41.6%43.5%EBITDA Margin

2004

83(5.0)

78

+19.4%

ROE



Net Income

Investment

In Fleet

Indebtedness

RENT3 Performance


2004 2005 4Q04 4Q05

21

32

2153

63

+31% 42

90

128

78218

227

+16% 149

+4% +19%

120

64184

2003

Fleet RentalUsed Cars

10

Result Breakdown per Business

2005

Car Rental Fleet Rental

Rental Used Cars Total Rental Used

Cars Total

369.9 641.2 78.3 227.5

(41.1)30.0

+13.2%

103.1

+45.3%

-52.5%

(0.2)

-0.2%

74.4

+11.6%

178.7

+27.9%

(11.3)

-3.0%

39.8

+10.8%

EBITDA138.9 103.3 3.9 285.7

FranchisingTOTAL

Revenue271.3 149.2 8.2

2.1

+25.6%

+47.2%

876.9

Net Income 89.7 69.1 106.5

IncomeMargin +33.1% +46.3% +12.1%

EBITDA Margin +51.2% +69.2% +32.6%

ROE



Net Income

Investment

In Fleet

Indebtedness

RENT3 Performance


11

2005 EBITDA per Business(R$ million, USGAAP)

32.6%47.2%45.3%27.9%Margin

178.8

4103.1

Car Rental Fleet Rental Franchising Total

286

36%

63%

1%

ROE



Net Income

Investment

In Fleet

Indebtedness

RENT3 Performance

12

Consolidated Performance(R$ million, USGAAP)

+35.4%

2003 2004 4Q04 4Q05

4,959

Dailies - thousand

TCAC: +16.8% +40.1%

2005

21059152

20052003 2004 4Q04 4Q05

EBITDA

80TCAC: +37.2% 286

14

106

20052003 2004 4Q04 4Q05

Net Income

27TCAC: +24.5%*

+96.7%

91

69*

107

2003 2004 4Q04 4Q05

634 224

532

Net Revenues

191TCAC: +28.4% +17.3%

2005

877

6,7625,219 1,9891,420

ROE



Net Income

Investment

In Fleet

Indebtedness

RENT3 Performance

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

13

Net Income Evolution(R$ million, USGAAP)

90.6

2004 Net Income

+876.9Net Revenue

-511.2

Direct Costs

-87.7

OperatingExpenses

Depreciation

-43.0

-84.4

Net Financial Expenses

Taxes

106.5

2005 Net Income

-44.0

Non oeratingResult

0.1

+38.2%

+40.4%

+84.1%

+8.1%-0.2%

+17.6%

+96.2%

+20.3%

Margin Margin14.3% 12.1%

ROE



Net Income

Investment

In Fleet

Indebtedness

RENT3 Performance

14

Return on Equity (ROE)

2003 2004 2005

38.6% 38.9% 36.7%

1. ROE was calculated dividing the average equity of the year, disregarding theyear’s net income

2. 2003 net income disregarded MTM of derivatives contracts

(USGAAP)

ROE



Net Income

Investment

In Fleet

Indebtedness

RENT3 Performance

15

Fleet : investment and expansion

38.1 191.2 243.5

Investment - (R$ million, USGAAP) Quantity - thousand

2003 2004 2005 2003 2004 2005

Sales Purchases

Net investment Fleet expansion (thousand)

-0.4 6.5 7.3

250288 302

493 447

690

15.515.1 15.7

22.218.8

26.1

2003 2004 2005 2003 2004 2005


ROE



Net Income

Investment

In Fleet

Indebtedness

RENT3 Performance

16

Indebtedness

Net Debt (R$million) USGAAP

2003 2004 2005

87

281

539TCAC: +148.9%

1.370.960.36Net Debt / equity

3.394.889.99*EBITDA / net financial expenses

60%46%22%Net Debt / fleet

1.891.340.57Net Debt / EBITDA

12/31/2003 12/31/2004 12/31/2005Rating S&P - Positive BrA


ROE



Net Income

Investment

In Fleet

Indebtedness

RENT3 Performance

* Without swap effects

17

RENT 3 Performance

RENT3 X IBOVESPA

10

12

14

16

18

20

22

24

26

28

30

23-M

ay

7-Ju

n

21-Ju

n

5-Ju

l

19-Ju

l

2-Au

g

16-A

ug

30-A

ug

14-S

ep

28-S

ep

13-O

ct

27-O

ct

16-N

ov

5-Dec

19-D

ec

3-Ja

n

Pric

e

0

20

40

60

80

100

Volu

me

(R$

thou

sand

)

Volume RENT3 RENT3 IBOVESPA

Free-Float of 37.74% and foreign participation of 85%

Average volume traded of R$ 4.14 million

RENT3 Performance since IPO: +152.8% (1)

RENT 3 Performance x IBOVESPA: +116.33% (1)

ROE



Net Income

Investment

In Fleet

Indebtedness

RENT3 Performance

(1) From May 23 (IPO date) to 12/31/2005

18

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.

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.

Disclaimer - Forward Looking Statements

4 Q05 Analystand Investors Meeting

Business

Transcript of 4 Q05 Analystand Investors Meeting