1
3Q07 results presentation(R$ million - USGAAP)
Localiza Rent a Car S.A.
2
3Q07 Highlights(R$ million, USGAAP)
Total net revenue
382.8
286.8
3Q06 3Q07
Rrental revenue (rental and franchising)
168.3143.2
3Q06 3Q07
EBITDA
104.7
80.3
3Q06 3Q07
Net income
50.4
36.3
3Q06 3Q07
33.5%
30.4%38.8%
17.5%
3
Localiza has been presenting a consistent growth…(R$ millions. USGAAP)
127 145 160 221 270 286 281 331 429 555 485191 251
303
448
590 633
15189
8586 90
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 9M07
4262
150154134
85
288311
278
198
152
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 9M07
22.355
28.699
35.865
46.003 44.680
14.339
19.82124.579 22.845
11.00610.783
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 9M07
Revenue evolution
EBITDA evolution
EOP fleet evolution
CAGR: 16.9%
CAGR: 24.9%
CAGR: 15.0%
34.4%
25.3%
26.6%
213 235 245310
421 477 532634
877
1,145 1,118
Rental revenues Used car sale revenues
4
...maintaining profitability...
324,9 420,5 547,4399,0 479,1
141,3 166,4143,6 214,5
6,5
7,7
5,8
5,6
632,8
377,4
590,3
303,0
448,2
8,2
1,91,9
2004 2005 2006 9M06 9M07 3Q06 3Q07
160,0216,0
281,8209,4
251,0
75,4 91,5
26,834,5
22,059,0
36,6
4,0 12,2
3,2
1,2
2,9 2,9
2,4
0,91,0
2004 2005 2006 9M06 9M07 3Q06 3Q07
(R$ million, USGAAP)
109,1142,4
199,6150,1 166,9
55,1 61,0
-38,0-18,6 -63,3 -44,8 -34,5 -19,2 -11,4
0,80,4
2,11,6
1,9
0,22,1
2004 2005 2006 9M06 9M07 3Q06 3Q07
Net revenue EBITDA
Net income
Rental Used car sale Franchising
90,6106,5
138,2
106,8134,3
36,350,4
CAGR (*): 23.5% 24.4%
35.3%
634,4
876,9
1.145,4
782,2
1.117,5
286,8382,8
197,8
278,2 311,5233,8
288,4
80,3 104,7
30.4%
23.4%
33.5%
42.9%CAGR (*): 34.4%
CAGR (*): 25.5%
29.4% 30.2% 20.1%17.8%
35.0%30.5% 19.9%
21.4%
30.5%40.2% 11.1%
10.4%
5
…and consistent EBITDA margins
57.8%
41.4%
5.8%
52.5%
69.0%
43.5%
9M6
56.1%
37.7%
4.5%
51.5%
69.1%
42.1%
2006
59.5%64.9%59.7%Total EBITDA / rental revenue
51.8%39.0%18.5%Franchising
5.5%13.2%12.1%Seminovos (Used car sales)
52.4%51.4%49.2%Consolidated Rental
68.7%62.4%63.4%Fleet Rental
43.6%45.3%40.1%Car Rental
9M0720052004Margin per division
6
Localiza’s car rental division continues to increase its network…
Owned car rental agencies
172145
11783
2004 2005 2006 9M07
3428
27
27 new agencies
7
...with the highlight for the increase on off-airport agencies
Car rental revenue breakdown
The geographical expansion strategy protects Localiza from the air-traffic crisis.
Revenue increase
24,6%46.7%Off-airports
11,5%16.0%Airports
9M07/9M062006/2005
Off-airport agencies Airport agencies
53% 54% 59% 62%
47% 46% 41% 38%
2004 2005 2006 9M07
100% 100% 100%100%
8
Solid improvement of productivity...
493,1
690,0
930,3
506,2607,0
303,0448,2
590,3 632,8
377,4
2004 2005 2006 9M06 9M07
26,1
33,5
17,718,823,2
14,9
22,2 21,615,7
22,5
2004 2005 2006 9M06 9M07
# of cars - thousands Net investment – R$ million
+6.5+7.3
+10.3
2.8
+190.1+241.8
+340.0
128.8-0.9
-25.8
Purchased Sold
The increase of productivity reduced the investment in fleet
60,6% 58,8%65,5% 66,4% 69,3%
2004 2005 2006 9M06 9M07
Utilization rate – car rental division
4.9 p.p. 2.9 p.p.
Buying and selling of cars
9
…and low cost of depreciation…
1.6%5.2%2.9%1.8%9.2%% depreciation over rental revenues
1.0 p.p.0.9 p.p.3.7 p.p.9.8 p.p.4.7 p.p.Real increase in the new car prices
2.8%3.1%5.7%7.6%9.3%Inflation IPCA
3.8%4.0%9.4%17.4%14.0%Increase of new car (Pálio)
9M072006200520042003
Average depreciation per car Real increase in the new car prices
416.5
939.1
492.3 322.9
1,52.3
1.0 p.p.0.9p.p.
3.7p.p.
9.8p.p.
4.7p.p.
(1.000)
(500)
-
500
1.000
1.500
2.000
2003 2004 2005 2006 9M07 anualizado
-5%
-3%
-1%
1%
3%
5%
7%
9%
11%
10
...contribute to the reduced net investment for fleet renewal…
9.4%10.0%14.2%% over average purchase price
2.62.63.1Net investment
25.023.418.8Average selling price
27.626.021.9Average purchase price
200620052004Net investment per car – R$ Thds.
Average net investment per car for renewal– R$ thd
1.1%
0.3
27.4
27.7
9M07
The increase in the new car price in line with inflation contributes for thereduction of the expenditure for fleet renewal.
0.3
2.62.6
3.1
1.0p.p.0.9p.p.
3.7p.p.
9.8p.p.
0
3 ,5
2004 2005 2006 9M07
0 ,0 %
Net investment per car Real increase in the new car prices
11
…resulting in the increase of the free cash flow
Free cash flow before growth
99.5
340.6
32.730.4
2004 2004 2004 9M07
(R$ millions. USGAAP)
262.7%7.6% 118.7
222.0 *
* Impact on the cash flow due to the extraordinary increase in the automakers account
99.5 53.7 (161.3)(113.5)Free cash flow
-(287.0)(194.0)(143.8)Car acquisition - growth
99.5 340.7 32.7 30.3Free cash flow before growth
(42.9)(112.9)(134.8)(100.6)Net car acquisition –renewal
162.0 486.2195.5 141.2 Cash generated by operating activities
81.9 (217.4)49.9 15.7 Working capital variation
243.9 268.8 245.5 156.9 EBITDA after taxes
9M07200620052004
12
The debt was elongated and the cost of debt was reduced
* Annualized
16%10%30%35%Net debt / Market cap
1.1x*1.0x1.5x1.1xNet debt / EBITDA (BRGAAP)
1.6x*1.4x1.9x1.3xNet debt / EBITDA (USGAAP)
52% / 48%41% / 59%58% / 42%49% / 51%Net debt / Net equity
49%36%60%46%Net debt / fleet
9M07200620052004Final period balance
(R$ millions. USGAAP)
CDI + 0.44%2nd debentures issue
108.5% of CDI1nd debentures issue
Debt amortization chronogram
66.766.767.0
0.9
350.9
0.9
117.3116.5
2007 2008 2009 2010 2011 2012 2013 2014
13
Constant increase in the value added to shareholders
39,340
509,206
7.7
16.9%
24.6%
2004
25,80820,64316,363EVA increase
102,15476,34655,703EVA - R$ Thds.
1,183,338988,112608,207Capital investment - R$ Thds. (1)
8.67.79.2Spread (ROIC-WACC) - p.p.
10.8%11.0%15.7%WACC nominal
19.5%18.7%24.8%ROIC
9M07annualized20062005
(1) For the EVA® calculation. we used the Average Capital of the period
55.7 39.3 76.3 102.2
10.8%11.0%
16.9% 15.7%19.5%18.7%
24.8%24.6%
-
100
200
2004 2005 2006 9M07 anualizado0%
20%
40%
EVA WACC ROIC
R$
/ mil
EVA
-
25,808
195,226
0,9
(0,2) p.p.
0,7 p.p.
Variation
14
RENT3 liquidity
0
5
10
15
20
25
23-M
ay7-
Jun
21-Ju
n5-
Jul
19-Ju
l2-
Aug16
-Aug
30-A
ug14
-Sep
28-S
ep13
-Oct
27-O
ct11
-Nov
28-N
ov12
-Dec
26-D
ec10
-Jan
24-Ja
n8-
Feb22
-Feb
10-M
ar24
-Mar
7-Apr
25-A
pr10
-May
24-M
ay7-
Jun
22-Ju
n6-
Jul
20-Ju
l3-
Aug17
-Aug
31-A
ug15
-Sep
29-S
ep16
-Oct
30-O
ct14
-Nov
30-N
ov14
-Dec
2-Ja
n16
-Jan
31-Ja
n14
-Feb
2-Mar
16-M
ar30
-Mar
16-A
pr30
-Apr
15-M
ay29
-May
13-Ju
n27
-Jun
12-Ju
l26
-Jul
9-Aug
23-A
ug6-
Sep21
-Sep
Pric
e
0
20
40
60
80
100
120
Vol
ume-
R$
thou
sand
Volume RENT3 RENT3 IBOVESPA
RENT3 X IBOV
388%
150%
From 05/23/05 (IPO) to 09/28/07
2005 2006 2007
13.7 10.6
4.6
2005 2006 9M07
+150%+388%Since IPO
+36%-13%2007
+33%+124%2006
+38%+149%2005
IBOVRENT3Performance
RENT3 was the 62ª most traded stock at Bovespa in the last 12 months
132%
29%
Average daily traded volumeR$ million
15
Europe, Middle East and Africa
Germany and abroad
USAWorldwideSouth America
Coverage
3.434.0129.558.0610.39EV/EBITDA 2007
28.3111.5313.3416.4117.88P/E 2007
0.06%6.24%1.37%2.02%24.82%Net Margin (rentals)
1.08107.13123.71168.4778.49Net Income
19.74%34.70%37.43%37.71%56.09%EBITDA Margin (over rental revenues)
352.89595.784646.413,140.82177.33EBITDA
1,787.751,717.031,727.108,328.37316.20Rental Net Revenue
-2,045.62--717.89Total Net Revenue (rentals and car resale)
Source: Reuters Knowledge on 09/18/2007. US$ thousand, converted to US Dollar at the EOP exchange rate.
Industry benchmarks - LTM
16
Aviso - Informações e projeções
� �� �� � �� �� � � � � � é �� � � �� � �� ç
�� � � � �� � �� ç
� � � � �� � � � � �� �� � � �� � � � �� � �� � � � � � �� � � � � �� � �� ç
� ���
� �� �� � � � � � �� � �� ç
� � �� � � � � � � � �� ç � � � � � �� � �� � � � � �� � � � � � � � � � � � � �� � � � �� � � � � � � � � � � � � �� � � �� � �� � �� � �
�� �� � � � � ç
� ��� � �� � � �� � �� ç
� � é � � � � �� � � �� �� � � � � � �� � � � � � � � � � � � � � � �� � � � � � �� � � �� � � � � � � � �� ! � � � � � ��
� � � �� �� ç
� � � � � � � � � � �� �� �� � �� � � �� à �� � �� ç
� ��� � � � � � ç
�� � � " �� � # � �� � � � �� � �� ç
� � � � � � � �� � �� � � � � � � � � � � � �
� � � � � �� � � "� � �� �� � � � � � � � � � � � � � � � ����
� �� � � �� � �� ç
� � �� �é � � � � �� �� ç
� � � � �� � �� ç
� � � �� � � � � � �� � �� � � � � � � �
á �� $% �
ª
� � &' () * +, +' - . ( , / 01 23 3 � � �
á �� $4 � � �
5 � � � � � � � �6 � �� � � � � � � � 4 78 9� �� � � � � �� �� ç
� � � � �� � �� ç
� � � �� � � � � � �� �� � �� � � �� � �� � � � � � � � �� �� � �� � � � � � � � � � �
� � ���� � � � � � � � � � � � � � � � � � �� � � � � � �� �� � � � � � � � �� �� ç
� � � � �� � �� ç
� � � �� � � � � � �� � � � � � � �� � ���� �� �� � � � � �� ��� : � � �� �
� � �� � � �� � � �� � �� !� � �� �� �� �� �� � � �� à � � � �� ç
� � � � � � � " � � �� � � � �ó � � � � � � �� � �� � � � � �� � �� �� � � � � � � � � � � � � � � � �
� �� � �� � � �� � � � � � � � �� � � � � � � � � �� � � � � � �� � � �� �� � � �� �� � � �� � �� � � � � �� � 6 � �� � � � � � �í � � �� � � � � �� �� ç
� � �
� �� � �� ç
� � � �� � � � � � �� �
� � " � �� � � �� � �� � � � � �� � � �� � � � � 6 � � � �� � � �� � � �� � � � �� � � � � � � � � �� �� ç� � � � �� � �� ç
� � � �� � � � � � �� � :� � �� !� á � � � �
"� � � � � � � � � � � � � � � � � �� � � � � í �� � à � � � � � � � �� ç
� ��� � � �� � �� � � �� � � � � �� �� � � � �� � �� � � � � �� �� � � � � �� � � �� � �
� �� � �� � � � � �� � � � 6 � �� � � � �� � � � � � � � � � � � � � � !� �� � �� � � �� � � � � � �� �� ç
� � � � �� � �� ç
� � � �� � � � � � �� �
� � é � � � � � � � � � � �� �� �� � � � � � � � � � �� � � ; � � � �� � � �� � � " � � �á � � � � � � � �� �� � � � � �� � � � �� � � � � �� :� � � � �� � � �� � � � ��
�� �� � � � � &' () * +, +' - . ( , / 01 2 3 3� < � �� � � � �� � �� � � �� � � �� � � " � � �á � � � � � � �� � �� � � �� � � ; � � � � � �� �á # � � � � � � � � � � � � �
� � � � �� � � � � � �� � �� � � �� � � � � � " � � � � �� � � ) = >' *? * +, ' * -� � � � � � �� � � � � � �� � �� � � � � �á �� �� � � � �� � � � �� � � � � �� �� � # � �� � �� � �� ç
� �
� � �� � �� � � � " �� � � �� � �� � � � � � �ó � � � � �� � �� � � � � � �� � �� � � �
é � � � � � � � � � �� ç
� � � � � �� � �� �
����������������������������������������������������ç � � � �� � �� �� �� � ������� � � ���� � ��� � � �� � � � �� � �� �� �� � ������� � � ���� � ��� � � �� � � � �� � �� �� �� � ������� � � ���� � ��� � � �� � � � �� � �� �� �� � ������� � � ���� � ��� � � ��ç � �� ��� � ������ ���� � �� � � �� ��� � ������ ���� � �� � � �� ��� � ������ ���� � �� � � �� ��� � ������ ���� � �� � ç � �� � �� � � ����� ��� � � �� � ���� �� � ���� � �� � �� � � ����� ��� � � �� � ���� �� � ���� � �� � �� � � ����� ��� � � �� � ���� �� � ���� � �� � �� � � ����� ��� � � �� � ���� �� � ����� � � � � � � � � � � � � � � � á� � ���� �� ��������������� � ���� �� ��������������� � ���� �� ��������������� � ���� �� ��������������ç � ��� �� � �� � � ���� � ����� � �� � � � ��� � �� �� �� ���� ����� ��� � �� � �� � ��� �� � �� � � ���� � ����� � �� � � � ��� � �� �� �� ���� ����� ��� � �� � �� � ��� �� � �� � � ���� � ����� � �� � � � ��� � �� �� �� ���� ����� ��� � �� � �� � ��� �� � �� � � ���� � ����� � �� � � � ��� � �� �� �� ���� ����� ��� � �� � ����� �� � �� � � ��� � ��� ���� �� � �� � � ��� � ��� ���� �� � �� � � ��� � ��� ���� �� � �� � � ��� � ��� �� ��� � �� � � ������� ��� � �� � � ������� ��� � �� � � ������� ��� � �� � � ������é � �� �� �� �����
� �� �� � �� �� � � � � � é �� � � �� � �� ç
�� � � � �� � �� ç
� � � � �� � � � � �� �� � � �� � � � �� � �� � � � � � �� � � � � �� � �� ç
� ���
� �� �� � � � � � �� � �� ç
� � �� � � � � � � � �� ç � � � � � �� � �� � � � � �� � � � � � � � � � � � � �� � � � �� � � � � � � � � � � � � �� � � �� � �� � �� � �
�� �� � � � � ç
� ��� � �� � � �� � �� ç
� � é � � � � �� � � �� �� � � � � � �� � � � � � � � � � � � � � � �� � � � � � �� � � �� � � � � � � � �� ! � � � � � ��
� � � �� �� ç
� � � � � � � � � � �� �� �� � �� � � �� à �� � �� ç
� ��� � � � � � ç
�� � � " �� � # � �� � � � �� � �� ç
� � � � � � � �� � �� � � � � � � � � � � � �
� � � � � �� � � "� � �� �� � � � � � � � � � � � � � � � ����
� �� � � �� � �� ç
� � �� �é � � � � �� �� ç
� � � � �� � �� ç
� � � �� � � � � � �� � �� � � � � � � �
á �� $% �
ª
� � &' () * +, +' - . ( , / 01 23 3 � � �
á �� $4 � � �
5 � � � � � � � �6 � �� � � � � � � � 4 78 9� �� � � � � �� �� ç
� � � � �� � �� ç
� � � �� � � � � � �� �� � �� � � �� � �� � � � � � � � �� �� � �� � � � � � � � � � �
� � ���� � � � � � � � � � � � � � � � � � �� � � � � � �� �� � � � � � � � �� �� ç
� � � � �� � �� ç
� � � �� � � � � � �� � � � � � � �� � ���� �� �� � � � � �� ��� : � � �� �
� � �� � � �� � � �� � �� !� � �� �� �� �� �� � � �� à � � � �� ç
� � � � � � � " � � �� � � � �ó � � � � � � �� � �� � � � � �� � �� �� � � � � � � � � � � � � � � � �
� �� � �� � � �� � � � � � � � �� � � � � � � � � �� � � � � � �� � � �� �� � � �� �� � � �� � �� � � � � �� � 6 � �� � � � � � �í � � �� � � � � �� �� ç
� � �
� �� � �� ç
� � � �� � � � � � �� �
� � " � �� � � �� � �� � � � � �� � � �� � � � � 6 � � � �� � � �� � � �� � � � �� � � � � � � � � �� �� ç� � � � �� � �� ç
� � � �� � � � � � �� � :� � �� !� á � � � �
"� � � � � � � � � � � � � � � � � �� � � � � í �� � à � � � � � � � �� ç
� ��� � � �� � �� � � �� � � � � �� �� � � � �� � �� � � � � �� �� � � � � �� � � �� � �
� �� � �� � � � � �� � � � 6 � �� � � � �� � � � � � � � � � � � � � � !� �� � �� � � �� � � � � � �� �� ç
� � � � �� � �� ç
� � � �� � � � � � �� �
� � é � � � � � � � � � � �� �� �� � � � � � � � � � �� � � ; � � � �� � � �� � � " � � �á � � � � � � � �� �� � � � � �� � � � �� � � � � �� :� � � � �� � � �� � � � ��
�� �� � � � � &' () * +, +' - . ( , / 01 2 3 3� < � �� � � � �� � �� � � �� � � �� � � " � � �á � � � � � � �� � �� � � �� � � ; � � � � � �� �á # � � � � � � � � � � � � �
� � � � �� � � � � � �� � �� � � �� � � � � � " � � � � �� � � ) = >' *? * +, ' * -� � � � � � �� � � � � � �� � �� � � � � �á �� �� � � � �� � � � �� � � � � �� �� � # � �� � �� � �� ç
� �
� � �� � �� � � � " �� � � �� � �� � � � � � �ó � � � � �� � �� � � � � � �� � �� � � �
é � � � � � � � � � �� ç
� � � � � �� � �� �
����������������������������������������������������ç � � � �� � �� �� �� � ������� � � ���� � ��� � � �� � � � �� � �� �� �� � ������� � � ���� � ��� � � �� � � � �� � �� �� �� � ������� � � ���� � ��� � � �� � � � �� � �� �� �� � ������� � � ���� � ��� � � ��ç � �� ��� � ������ ���� � �� � � �� ��� � ������ ���� � �� � � �� ��� � ������ ���� � �� � � �� ��� � ������ ���� � �� � ç � �� � �� � � ����� ��� � � �� � ���� �� � ���� � �� � �� � � ����� ��� � � �� � ���� �� � ���� � �� � �� � � ����� ��� � � �� � ���� �� � ���� � �� � �� � � ����� ��� � � �� � ���� �� � ����� � � � � � � � � � � � � � � � á� � ���� �� ��������������� � ���� �� ��������������� � ���� �� ��������������� � ���� �� ��������������ç � ��� �� � �� � � ���� � ����� � �� � � � ��� � �� �� �� ���� ����� ��� � �� � �� � ��� �� � �� � � ���� � ����� � �� � � � ��� � �� �� �� ���� ����� ��� � �� � �� � ��� �� � �� � � ���� � ����� � �� � � � ��� � �� �� �� ���� ����� ��� � �� � �� � ��� �� � �� � � ���� � ����� � �� � � � ��� � �� �� �� ���� ����� ��� � �� � ����� �� � �� � � ��� � ��� ���� �� � �� � � ��� � ��� ���� �� � �� � � ��� � ��� ���� �� � �� � � ��� � ��� �� ��� � �� � � ������� ��� � �� � � ������� ��� � �� � � ������� ��� � �� � � ������é � �� �� �� �����
17
Thank you!
RI Localiza:www.localiza.com/ritel: (31) 3247-7039