1. Localiza Rent a Car S.A.
2006 Results presentation
(R$ millions - USGAAP)
0

2. Integrated business platform
145 agencies 15,265 cars
31,373 cars (635 managed)
1,000,000 individuals and 350 clients
14,000 corporations
156 employees
1.688 employees
Synergies:
cost reduction
cross selling
bargaining power
Overhead = 124 employees
182 agencies 26 points of sale
in 9 countries 79% sold to final
consumer
6,730 cars
15 employees 350 employees
This integrated business platform gives us superior performance
As of December 31, 2006

3. Strategy by segment
Increase market leadership maintaining high return
Core Businesses
Add value to the brand by expanding the network in
Brazil and South America
Create value taking advantage of the synergies of the
integrated business platform
Support
Add value to the businesses of the platform as a
competitive advantage, reducing depreciation costs
2

4. Growth opportunities
and
Competitive advantages
3

5. Growth opportunities
GDP elasticity
Consolidation Air traffic
Credit cards
Fleet outsorcing
Replacement
4

6. Growth opportunities: GDP
Accumulated growth rate – car rental
7.7x
2003 2004 2005 2006
Localiza – Daily volume GDP
The average car rental division volume growth was
7.7 x GDP over the last 3 years
Source: Bacen, Localiza
5

7. Growth opportunities: Air traffic
Air traffic evolution Number of travellers has
(Millions of passengers per year)
increased 13% on the last 3
years
13%
CAGR: +
Localiza is the absolute leader
102
96
83
in airport branches in Brazil
71
In 2006 Localiza Car Rental
Division grew 2 times faster
2003 2004 2005 2006
than the number of passengers
Source: infraero
6

8. Growth opportunities: Credit cards
# of credit cards (million)
18%
CAGR: +
78
68
53
48
2003 2004 2005 2006
78 million credit cards in Brazil
35.5 million potential Localiza customers
37% of car rental revenues came
through credit cards in 2006
Source: www.abecs.
7

9. Growth opportunities: Replacement market
Replacement is a growing market in Brazil
Brazil has 34 million cars but only 9.2 million
insured
The accident rate is 16.5% / year
The potential market is 10.6 million of daily
rentals (2.5 x the car rental division in 2006)
Localiza is very well positioned to capture this growth
due to its geographic footprint
Source: FENASEG -
8

10. Growth opportunities: Fleet outsourcing
Large potential market with low penetration due to lack of habit
Large potential market with low penetration due to lack of habit
Focus of corporations on their core businesses
Focus of corporations on their core businesses
Fixed asset reduction by companies (increase their asset turnover)
Fixed asset reduction by companies (increase their asset turnover)
Renting a fleet is more economic than owning it
Renting a fleet is more economic than owning it
9

11. Growth opportunities: Consolidation
US Market share 2005
US airport segment* US off-airport segment*
US$10BN - US$10BN
Enterprise
All others
Other
7% DTG
19%
2%
Avis Budget 11% Avis Budget
32%
7%
Vanguard Hertz
Enterprise
20% 9%
65%
Hertz
28%
USA: 5 companies hold 92% of market share
Europe: 6 companies hold 74% of market share**
Source:*Avis presentation nov/06 - local segment share amounts are company estimates
** National/Alamo prospectus, NYSE/SEC, September 20, 2006
10

12. Growth opportunities: Consolidation
Localiza’s market share – Car and Fleet - Brazil
2004 2005 2006E
Avis Hertz
Unidas 4%
7% 4%
Local
players
20%
18%
69%
16%
Localiza corporation grew 30.2% in 2006.
ABLA estimated the market growth in 12%
Localiza grew more than 2x the market in 2006
Source: ABLA
11

13. Growth opportunities: Off-airport market
Airport and off airport market - Brazil
BR on airport segment* BR off-airport segment*
agencies agencies
*
Others Localiza
**
* 203 Hertz
48 Localiza
**
86Avis
76
83
** **
Unidas
Others*** Unidas
31
** ** 1960 74
Avis Hertz
31 33
Source: 1964 companies as of ABLA’s report
* Localiza as of 12/31/06
**Each company website, 01/07/07
*** Assuming that each local player has one agency
In the airports the market is concentrated in the hands of the networks
Off-airport market is fragmented mainly among 1.960 small car rental companies
Localiza is the consolidator in a fragmented industry!
12

14. Growth opportunities: On airport and off-airport growth
2006
Domestic deplanements increase x Localiza (rentals on airports) Of f- airport x On - airport share
100%
100%
-5 p.p.
27,2% 41%
46%
20,4%
14,3% 14,0% 12,3% 9,8% +5 p.p. 59%
54%
1,5% 0,2%
2005 2006
1T06 2T06 3T06 4T06
Domestic deplanement Daily rental volume on airports Off-airport agencies On-airport agencies
Elasticity on airport in 2006 was 2 times the growth of domestic deplanements
2006 / 2005 Growth (Car rental division)
Volume growth Revenue growth
Airport 17.2% 16.0%
Off-airport 49.6% 46.7%
Consolidation is happening mainly on the off-airport agencies
13

15. Competitive advantages
Bargaining
Gains of
power
scale Integrated platform
Geographical distribution
Yield management
Credit with lower interest rate
Know-how
Strong brand
State of the art IT
Bargaining power
Depreciation
Higher
Market share
competitiveness
increase
14

16. Competitive Advantages: Integrated business platform
Fleet rental
Car rental
Franchising Used Car Sales
This integrated business platform gives us superior performance
15

17. Competitive Advantages: Largest distribution
Nationwide
Nationwide
presence
presence
Strategic
Strategic
locations
locations
International
International
footprint
footprint
327 agencies in 9 countries
16

18. Competitive Advantages: Largest distribution
(number of agencies in Brazil)
279*
243**
74
279
83
86
Localiza Hertz Avis Unidas
Localiza network is larger than
the second, the third and the fourth competitors combined.
* As of December 31, 2006 ** As of January 29,2007
17

19. Competitive Advantages: Yield management
Localiza adjusts its prices based on supply & demand
Month of the year
Month of the year
Day of the week
Day of the week
City
City
Events
Events
Volume per customer
Volume per customer
Competitors’ monitoring
Competitors’ monitoring
Yield management allows Localiza to be more
competitive and profitable
18

20. Competitive Advantages: credit with lower interest rate
Standard & Poor’s as of January 2007
Global Scale
Localiza Rent a Car S.A. BB / Stable /--
Hertz Corp. BB-/ Stable /--
Vanguard (National / Alamo) B+/ Stable /--
Avis Budget Car Rental BB+/ Stable /--
Enterprise Rent-Car Co. A-/ Stable / A-2
Local Currency
Localiza Rent a Car S.A. brAA-/ Stable /--
TAM S.A. brA+/ Stable /--
Gerdau S.A. brAA+/ Positive /--
CPFL Energia S.A. brA+/ Positive /--
Banco Bradesco S.A brAA+/ Positive /brA-1
Banco Citibank S.A. brAA/ Positive /brA-1
Banco Itaú S.A. brAA+/ Positive /brA-1
Localiza has the best rating among its international peers
considering the debt currency
19

21. Competitive Advantages: Know-how
Deep knowledge of the business
State-of-the-art systems
Operational excellence
Adoption of best practices
Stable management
Experience in
Name Responsibility
Localiza
Salim Mattar (Founder) CEO and Chairman of the Board 33
Antonio Resende (Founder) Vice-president 33
Eugênio Mattar (Founder) Vice-president 33
Aristides Newton Franchising 24
Gina Rafael Car rental 26
Daltro Barbosa Total Fleet 22
Marco Guimarães Seminovos 15
Roberto Mendes CFO 21
Silvio Guerra Investor relations 15
We believe this experienced team will run the business for the next ten years
20

22. Competitive Advantages: Brand recognition
Top of mind
High quality of services
Customer satisfaction
Strong nationwide presence
International franchising program
High standards of ethical behavior
21

23. Competitive Advantages: State of the art IT
Speed in transaction time
Better operational control
Customer satisfaction
On-line network
Cost reduction
22

24. Competitive Advantages: Bargaining power
33.520
26.105
22.182
15.062
2003 2004 2005 2006
Localiza purchased more than US$1,2 billion worth of cars from 2003-2006*
Localiza and its Franchisees represented in 2006
3,9% of FIAT internal car sales
2.7% of GM internal car sales
1,8% of the Brazilian internal car sales
*96.9 thousand cars between 2003-2006 calculated on average purchase price of 2006
Localiza enjoys better price and conditions due to its large scale
23

25. Competitive Advantages: Depreciation
When car prices go up more than inflation, depreciaton decreases
4.000,0
9,8p.p.
3.617,7 10,0%
3.000,0
2.000,0 4,7p.p. 6,0%
2.142,5
1.656,2 3,7p.p.
1.000,0
2,0%
939,1
1.752,3 492,3 0,9p.p.
322,9
- -1,0p.p.
-2,0%
2000 2001 2002 2003 2004 2005 2006
(1.000,0)
-4,1p.p.
-5,1p.p.
(2.000,0) -6,0%
Average depreciation Real decrease in the Real increase in the
per car new car price new car price
Average depreciation per year (R$1 thousand) over average price of purchased car in
2005 and 2006 (R$25 thousand) = 4% depreciation
Depreciation cost over the car rental revenue
% over rental revenue 2000 2001 2002 2003 2004 2005 2006
5.2%
Localiza (car rental division) 13.8% 11.9% 9.3% 9.2% 1.8% 2.9%
Hertz (USA) - - - - 22% 23% 23% *
National / Alamo (USA) - - - - 22% 23% 23% *
Avis / Budget (USA) - - - - 26% 29% 31%
Source: National/Alamo prospectus, Sep 20, 2006, p.11 Hertz prospectus, Nov 21,2006, p.12 and 17, Avis 2006 10K
* Until Set/06
24

26. Financials
25

27. 2006 highlights
(R$ million. USGAAP)
Consolidated net revenues Consolidated EBITDA
CAGR: 27%
CAGR: 29% 313
1,145 286
877 210
634 152
532
2003 2004 2005 2006 2003 2004 2005 2006
EVA
Net income
CAGR: 30%
CAGR: 26% 75,6
138,2
57,4
106,5
44,5
90,6
69
1,8
2003 2004 2005 2006
2003 2004 2005 2006
26

28. 2006 highlights: Footprint expansion
Owned car rental agencies Used car points of sales
32*
24% 145 26
100%
41% 117
17% 15
83 13 13
71
2003 2004 2005 2006
2003 2004 2005 2006
24% increase in the number of owned car rental agencies
100% increase in the number of used car points of sales
* Until the end of 1H07
27

29. EBITDA margin per segment
(R$ milhlion. USGAAP)
2003 2004 2005 2006
Car Rental
Car Rental 38,1% 42.6% 46.3% 42.3%
Car Resale 6,6% 15.3% 14.4% 4.6%
TOTAL 20,7% 28.4% 27.9% 21.2%
Fleet Rental
Fleet Rental 69,4% 65.2% 63.6% 69.3%
Car Resale -9,2% 8.2% 10.5% 4.6%
TOTAL 43,5% 41.7% 45.3% 42.4%
Rentals 51,8% 51.5% 52.5% 51.7%
Consolidated
Car Resale 2,9% 13.2% 13.7% 4.6%
Franchising 43,6% 41.5% 47.6% 39.0%
TOTAL 28,6% 33.1% 32.6% 27.3%
See addendum 1
28

30. 2006 cash generation
+313.7 (R$ million. USGAAP)
957.0
60.1
70.8 30.1
Cash and cash Cash and cash
-127.5
equivalents in equivalents in
01/01/06: 12/31/06:
-287.0
-643.3
-930.3
Investment in Financing and
Operating Acquisitions Acquisitions
other
activities to renew to growth Liquid securities
activities
23,174 cars 10,346 cars in short-term
The cash generation of R$ 957 MM was larger than the needs to renew 23,174 cars
(R$643.3MM) and also to grow 28.8% = 10,346 cars (R$287.0MM)
See addendum 2
29

31. Investment in fleet
(R$ million. USGAAP)
Number - thousand Net investment - million
340.0
241.8
33.520
930.3
26.105
190.1
23.174
22.182 690.0
18.763 590.3
15.715 493.1
448.2
303.0
2004 2005 2006 2004 2005 2006
Sales
Purchases
Net investment per car (R$ ‘000)
Fleet growth (thousand)
2004 2005 2006
2004 2005 2006
Average price purchased cars 22,2 26,4 27,7
+6.5 +7.3 +10.3 Average price sold cars 19,3 23,9 25,4
Net 2,9 2,5 2,3
% over purchase price 13.1% 9.5% 8.3%
Net investment per car to renew the fleet is declining from 13.1% to 8.3% due to
Net investment per car to renew the fleet is declining from 13.1% to 8.3% due to
the fact that new car prices are increasing in line with inflation
the fact that new car prices are increasing in line with inflation
30

32. Indebtness
(R$ million. USGAAP)
Net debt (R$ million) USGAAP
Rating S&P – BrAA- / Stable
2006 operating
539
443
cash flow was
58% of the debt
281
at the end of
87 2005
2003 2004 2005 2006
2003 2004 2005 2006
Net debt / fleet market value 22% 46% 60% 36%
Net debt / equity 27% / 73% 33% / 67% 50% / 50% 42% / 58%
Net debt / EBITDA (USGAAP) 0.57x 1.34x 1.89x 1.42x
Net debt / EBITDA (BRGAAP) 0.61x 1.1x 1.5x 1.0X
After the extraordinary dividend, the debt/equity leverage will return
After the extraordinary dividend, the debt/equity leverage will return
to a level (estimated 53% // 47%) that maximizes value for the shareholders
to a level (estimated 53% 47%) that maximizes value for the shareholders
See addendum 3
31

33. WACC
R$ / million
100,0 35,0%
29,3%
24,6% 24,1%
75,0 25,0%
19,8%
24,1% 18,4%
15,8%
11,8%
50,0 15,0%
-4 p.p.
25,0 5,0%
75,6
57,4
44,5
1,8
- -5,0%
2003 2004 2005 2006
EVA WACC nominal ROIC
2003 2004 2005 2006 2007E*
WACC 24.1% 18.4% 15.8% 11.8% 11.2%
Third party cost of capital 16.6% 11.5% 13.5% 10.7% 8.7%
Cost of own capital 26.9% 21.8% 18.1% 12.6% 14.0%
Third party’s capital x equity 27% / 73% 33% / 67% 50% / 50% 42% / 58% 53% / 47%
The 4 p.p. WACC decrease was offset by the reduction of 4 p.p. in ROIC
The 4 p.p. WACC decrease was offset by the reduction of 4 p.p. in ROIC
* 2007 Estimate considering the R$ 196.7 million extraordinary dividend
32

34. ROIC
R$ / million
-4 p.p.
100,0 35,0%
29,3%
24,6% 24,1%
75,0 25,0%
19,8%
24,1% 18,4%
15,8%
11,8%
50,0 15,0%
25,0 5,0%
75,6
57,4
44,5
1,8
- -5,0%
2003 2004 2005 2006
EVA WACC nominal ROIC
2003 2004 2005 2006
ROIC 24.5% 29.3% 24.1% 19.8%
Average increase in the car price 14,0% 17,4% 9,4% 4,0%
IPCA – inflation index 9.3% 7.6% 5.7% 3.1%
The 4 p.p. decrease in the ROIC in 2006 was mainly due to the slow down of the asset turnover:
The 4 p.p. decrease in the ROIC in 2006 was mainly due to the slow down of the asset turnover:
• Stable tariffs in the car rental
• Stable tariffs in the car rental
• 4% increase in the new car prices in 2006
• 4% increase in the new car prices in 2006
• Impact of inflation in operating costs
• Impact of inflation in operating costs
33

35. Spread and EVA
R$ / million
100,0 35,0%
29,3%
24,6% 24,1%
75,0 25,0%
19,8%
24,1% 18,4%
15,8%
11,8%
50,0 15,0%
32%
25,0 5,0%
75,6
57,4
44,5
1,8
- -5,0%
2003 2004 2005 2006
EVA WACC nominal ROIC
2003 2004 2005 2006
Average invested capital – R$ million 323.5 410.8 689.4 937.8
Spread (ROIC – WACC) percentage points 0.55 10.83 8.32 8.06
EVA – R$ million 1.8 44.5 57.4 75.6
Localiza continues to present low spread volatility
Localiza continues to present low spread volatility
In 2006 EVA grew 32% in accordance with the 31% growth in rented fleet
In 2006 EVA grew 32% in accordance with the 31% growth in rented fleet
34

36. Localiza and peers spread
2006
8.0p.p.
-2.2p.p
-3.4p.p.
-6.9p.p.
Localiza Hertz* Avis* DTG*
*Source: Morgan Stanley reports - Hertz 12/26/2006, Avis 09/05/2006 and DTG 09/28/2006
35

37. ROE – return on equity
39%
39% 37%
29%
2003 2004 2005 2006
OBS: ROE was calculated dividing net income by average equity of the year. excluding the income of the year
In 2006 Localiza equity grew R$ 156 MM due to the follow-on
Localiza was the 13th among the largest 500 companies in Brasil
Localiza was the 13th among the largest 500 companies in Brasil
with consistent ROE in the last 5 years, by 2006 FGV ranking
with consistent ROE in the last 5 years, by 2006 FGV ranking
36

38. 2007
Perspectives
37

39. 2007 perspectives
minimum 25% growth in volume
minimum 15% growth in volume
minimum 25 new agencies
EBITDA margin of 65%
EBITDA margin of 42%
utilization rate of 70%
Utilization rate - car rental division
74% 74%
70%
67% 66%
63% 61% 59%
2000 2001 2002 2003 2004 2005 2006 2007
Increasing the utilization rate will allow the increase of the asset turnover
38

40. 2007 perspectives: Management proposals for RENT3
Extraordinary distribution of dividends
R$ 196.7 million that added to the sum already distributed of R$ 35.2 million (as of
interests over own capital) reach R$ 3.45 per share or 12% over RENT3 quote beginning
2006
Split of the shares
Each one will be converted into 3 for the increase of the negotiability index
39

41. 2007 perspectives: Localiza’s strategies to add value
ROIC – WACC = SPREAD
Margin x Asset
turnover Low volatility
Capital structure optimization:
• Optimize capital structure
(own vs third parties capital)
• To maintain proper leverage for fast growth
Increase revenue:
• Increase volume
• Keep flat rates
Revenue / asset
Reduce assets:
• Increase utilization rate
Gains of scale:
• Organic growth
Operating income x (1- taxes) / revenue
Reduce income tax:
• Quarterly payment of interest on own capital
40

42. Strategies
Short-term:
To maintain fast growth volume
To increase our geographical footprint
To maintain profitability through scale and productivity
Long-term:
To expand business scale mainly through organic growth
To add value to the shareholders through new dividend policy
Localiza’s compensation system is aligned with the short-term (variable
remuneration) and long-term strategies (stock option with 3 to 11 years vesting)
41

43. Localiza’s recent
recognition
42

44. Recognition
Standard & Poor’s rating upgraded to ‘brAA-’ in national scale and ‘BB’
in global scale. same as sovereign risk. with stable outlook
Included in IBrX (between the 100 most traded shares)
Included in ISE – Corporate Sustainability Index (34 companies)
“Best Company for Shareholders” by Capital Aberto magazine. between
Companies of up to R$ 5 BI market share
The best subsequent public offer among the listed companies by
Infomoney, in a survey among the brokers registered in BOVESPA
43

45. Price
23
-M
10
15
20
25
30
35
40
45
50
55
60
65
70
7- ay
J
21 un
-J
u
5- n
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19 ul
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IPO:
2- ul
A
R$ 11.50
16 ug
-A
30 u g
-A
14 u g
-S
28 e p
-S
13 e p
-O
27 ct
-O
11 c
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28 ov
-N
12 ov
-D
26 ec
-D
10 ec
-J
24 an
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a
8- n
Fe
22 b
-F
10 eb
-M
RENT3 2006
Performance: RENT3 2005
24 ar
-M
a
7- r
Ap
25 r
-
10 Apr
RENT3 since IPO
-M
Volume RENT3
24 ay
-M
7- ay
J
22 un
-J
u
RENT3
RENT3 X IBOV
6- n
Ju
R$ 41.00
20 l
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Follow-on:
3- ul
Au
17 g
-A
31 u g
-A
15 u g
IBOVESPA
-S
29 e p
-S
16 e p
-O
30 ct
-
14 O c
-N t
30 ov
-N
Average daily trading volume in 2006: R$ 10,5 million
14 ov
-D
e
2- c
Ja
16 n
-J
31 an
-J
14 an
-F
e
+ 124% X IBOV + 33%
2- b
+ 149% X IBOV + 38%
+ 403% X IBOV + 80%
M
ar
R$57.80
03/08/07
0
20
40
60
80
100
120
44
From IPO until 03/08/2007.
Volume-R$ thousand
Performance - RENT3

46. RENT3 performance
Average daily traded volume (R$ million)
19,2
+111%
10,6
+130% 9,1
4,6
2005 2006 jan/07 feb/07
Localiza was the Best Company for Shareholders in 2006
Localiza was the Best Company for Shareholders in 2006
(companies up to R$ 5 bi market cap)
(companies up to R$ 5 bi market cap)
Research by Economática. Stern & Stewart, IBGC, FEA/USP and Capital Aberto Magazine
Research by Economática. Stern & Stewart, IBGC, FEA/USP and Capital Aberto Magazine
Source: Capital Aberto magazine
45

47. Thank you!
Localiza’s IR:
www.localiza.com/ri
Phone: 55 (31) 3247-7039
46

48. Disclaimer - Forward looking statements
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. 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’s management, 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.
47

49. Addendum 1:
Financial Cycles
48

50. Car rental financial cycle
Car Sales Revenue
Financing
102 Revenue per car sold** 102,20
100
SG&A (7%) (7,15)
Safety Margin (3%) (3,06)
Book value after 12 months 91,99
** Depreciation over list price:
100-(102.2/125)x100 = 18,2%
Principal 100,00
100 Interest (CDI + 1 p.p.) 15,00
115 Financial payment 115,00
Car acquisition
Financial payment
(List price net of dealers
discount = 125)
Depreciation = estimated price of selling after one year, net of SG&A and safety
margin minus price of purchase. Depreciation rate: 100-(102.2*0.9) = 8.02%
Holding cost of cars after tax with 3% margin = depreciation + financial cost.
Either the leverage is through third party financing or shareholder’s capital.
49

51. Car rental financial cycle
Car Sales Revenue
Financing
102 Revenue per car sold** 102,20
100
SG&A (7%) (7,15)
Safety Margin (3%) (3,06)
Book value after 12 months 91,99
Revenues = 114,58 ** Depreciation over list price:
100-(102.2/125)x100 = 18,2%
Expenses = 62,84
Principal 100,00
100 Interest (CDI + 1 p.p.) 15,00
115
Financial payment 115,00
Car acquisition Financial payment
(List price net of dealers
discount = 125)
Car Rental Car Resale (Seminovos) Consolidated
*
R$ % R$ % R$ %
Car rental revenue 114,58 100,0% 102,20 100,0% 216,78 100,0%
Costs (46,00) -40,1% (46,00)
SG&A (16,84) -14,7% (7,15) (23,99)
Book value of car resale (91,99) -90,0% (91,99) -3,8%
EBITDA 51,75 45,2% 3,06 3,0% 54,81 25,3%
Depreciation (8,20) -8,0% (8,20) -3,8%
Interest (15,00) -14,7% (15,00) -6,9%
Tax (30%) (15,52) -13,5% 6,04 5,9% (9,48) -4,4%
NET INCOME 36,22 31,6% (14,10) -13,8% 22,12 10,2%
% over car rental revenue 31,6% -12,3% 19,3%
Consolidated net margin is 19,3% of car rental revenues (if 100% leveraged).
50

52. Fleet rental financial cycle
Car Sales Revenue
Financing
Revenue per car sold** 102,20
102 SG&A (7%) (7,15)
100
Safety Margin (3%) (3,06)
Book value after 12 months 91,99
** Depreciation over list price:
Revenues = 53,64
100-(102.2/125)x100 = 18,2%
Expenses = 18,21
Principal 100,00
100 Interest (CDI + 1 p.p.) 15,00
Financial payment 115,00
115
Car acquisition
Financial payment
(List price net of dealers
discount = 125)
Fleet Rental* Car Resale (Seminovos) Consolidated
R$ % R$ % R$ %
Fleet rental Revenue 53,64 100,0% 102,20 100,0% 155,84 100,0%
Costs (14,24) -26,5% (14,24) -9,1%
SG&A (3,97) -7,4% (7,15) (11,12) -7,1%
Book value of car resale (91,99) -90,0% (91,99) -59,0%
EBITDA 35,43 66,0% 3,06 3,0% 38,49 24,7%
Depreciation (8,20) -8,0% (8,20) -5,3%
Interest (15,00) -14,7% (15,00) -9,6%
Tax (30%) (10,63) -19,8% 6,04 5,9% (4,59) -2,9%
NET INCOME 24,80 46,2% (14,10) -13,8% 10,70 6,9%
% over fleet rental revenue 46,2% -26,3% 20,0%
Consolidated net margin is 20% of fleet rental revenues (if 100% leveraged).
51

53. Pro-forma cash flow
and
working capital
52

54. Pro-forma cash flow: net cash provided by operating activities
Year Ended Year Ended Year Ended Variation Variation
2.004 2.005 2.006 Acum 2006-2005 %
CASH FLOWS FROM OPERATING ACTIVITIES:
90.568 106.519 138.233 29,8%
Net income 31.714
Adjustments to reconcile net income to net cash
provided by ( used in ) operating activities:
23.353 42.969 56.989 32,6%
Depreciation and amortization (including goodwill) 14.020
2.609 4.275 5.159 20,7%
Vehicles written off as a result of theft 884
248.651 361.171 530.439 46,9%
Cost of used car sales 169.268
(179) 11.275 7.950 -29,5%
Deferred income taxes (3.325)
(236) 578 (446) -177,2%
Provision for doubtful accounts (1.024)
8.414 284 (2.012) -808,5%
Provision for contingencies (2.296)
Realized gains on derivatives 25 1.706 - -100,0%
(1.706)
Exchange variation, net (17.428) (31.987) (8.153) -74,5%
23.834
49.030 504 23.016 4466,7%
Unrealized (gain) loss on derivatives 22.512
12.404 7.828 1.704 -78,2%
Compensation expense - Stock Options (6.124)
1.198 (2.465) (117) -95,2%
Other 2.348
418.409 502.657 752.762 49,8%
250.105
(Increase) decrease in operating assets:
(7.579) (39.091) (35.572) -9,0%
Accounts receivable 3.519
(996) (3.498) (670) -80,8%
Escrow deposits 2.828
- - (4.531)
Accrued interest income on marketable securities (4.531)
(1.830) (8.986) (2.019) -77,5%
Recoverable taxes 6.967
6.169 (5.554) (7.879) 41,9%
Other (2.325)
(4.236) (57.129) (50.671) -11,3%
6.458
Increase (decrease) in operating liabilities:
(22.917) (18.817) 220.256 -1270,5%
Accounts payable 239.073
1.753 1.176 4.605 291,6%
Payroll and related charges 3.429
2.108 (134) 5.343 -4087,3%
Income tax and social contribution 5.477
(2.210) 481 387 -19,5%
Taxes, other than on income (94)
732 1.740 (1.109) -163,7%
Advances from customers (2.849)
(483) (803) (334) -58,4%
Reserve for contingencies 469
1.690 12.645 (6.766) -153,5%
Loans and debt and debentures - accrued interest expense, net (19.411)
- - 22.008
Deffered revenues 22.008
403 1.273 10.528 727,0%
Other 9.255
(18.924) (2.439) 254.918 -10551,7%
257.357
513.920 116,0%
Net cash provided by operating activities 395.249 443.089 957.009
53

55. Pro-forma cash flow: investment and financing activities
Year Ended Year Ended Year Ended Variation Variation
2.004 2.005 2.006 Acum 2006-2005 %
CASH FLOWS FROM ( USED IN ) INVESTING ACTIVITIES:
- - (140.674)
Purchases of marketable securities (140.674)
- - 13.146
Proceeds from sales of marketable securities
(127.528)
Sub-total
(493.109) (690.040) (930.318) 34,8%
Car purchase (240.278)
- -
Close out of derivatives contracts -
(10.209) (27.974) (31.185) 11,5%
Additions to property and equipment, net (3.211)
(4.034) (66.160) (3.074) -95,4%
Cash paid on settlement of derivatives contracts 63.086
- - (1.502)
Acquisitions of former franchisees (1.502)
(507.352) (784.174) (1.093.607) (309.433) 39,5%
Net cash provided by investing activities
CASH FLOWS FROM ( USED IN ) FINANCING ACTIVITIES:
Long-term debt:
2.954 139.000 -100,0%
Proceeds (139.000)
-
Short-term loans:
332.791 971.945 361.425 -62,8%
Proceeds (610.520)
(200.732) (1.177.803) (371.346) -68,5%
Repayments 806.457
Debentures: -
350.000 -100,0%
Captações (350.000)
Transaction with related parties: -
16.030 15.372 150.126 876,6%
Capital increase 134.754
(50.000) (4.000) (5.595) 39,9%
Dividends (cash) (1.595)
(18.859) (12.016) (38.665) 221,8%
Dividends (interest on capital) (26.649)
282.498 95.945 (186.553) -66,0%
Net cash used in financing activities 82.184
(29.919) (58.587) (40.653) 17.934 -30,6%
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING
159.264 129.345 70.758 -45,3%
OF YEAR (58.587)
CASH AND CASH EQUIVALENTS AT END OF
129.345 70.758 30.105 (40.653) -57,5%
YEAR
-30,6%
(29.919) (58.587) (40.653) 17.934
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest 24.825 105.167 77.848 -26,0%
(27.319)
Income tax and social contribution 34.337 33.613 32.850 -2,3%
(763)
59.162 138.780 110.698 -20,2%
(28.082)
54

56. Working capital
WORKING CAPITAL
Year Ended Year Ended Year Ended
2.004 2.005 2.006
ASSETS
54.821 93.334 134.786
Accounts receivable, net
2.043 2.890 2.173
Deferred income tax and social contribution
3.363 14.739 12.561
other
60.227 110.963 149.520
18.949 23.267 23.913
Escrow deposits
13.865 11.191 11.387
Deferred income tax and social contribution
83 83 83
Compulsory loans
254 2.820 2.034
other
33.151 37.361 37.417
93.378 148.324 186.937
subtotal
LIABILITIES
58.753 39.398 264.156
Total accounts payable:
48.448 22.853 244.935
Accounts payable to automakers
10.305 16.545 19.221
Other accounts payable
13.315 14.491 22.397
Payroll and related charges
- - 1.280
Deferred revenues
1.793 1.659 3.633
Income tax and social contribution
15.396 24.338 30.608
Deferred income tax and social contribution
2.380 4.693 5.476
Taxes other tha income
5.579 7.319 6.210
Advances from customers
1.511 13.171 12.463
other
98.727 105.069 346.223
52.371 53.210 47.533
Reserve for contingencies
- - 11.369
Deferred revenues
5.734 6.246 7.402
Deferred income tax and social contribution
2.680 - 8.020
Taxes other tha income
60.785 59.456 74.324
159.512 164.525 420.547
subtotal
WORKING CAPITAL (66.134) (16.201) (233.610)
% OVER REVENUES -10,4% -1,8% -20,4%
55

57. Working capital without account payable to automakers
WORKING CAPITAL WITHOUT ACCOUNT PAYABLE TO AUTOMAKERS
Year Ended Year Ended Year Ended
2.004 2.005 2.006
ASSETS
54.821 93.334 134.786
Accounts receivable, net
2.043 2.890 2.173
Deferred income tax and social contribution
3.363 14.739 12.561
other
60.227 110.963 149.520
18.949 23.267 23.913
Escrow deposits
13.865 11.191 11.387
Deferred income tax and social contribution
83 83 83
Compulsory loans
254 2.820 2.034
other
33.151 37.361 37.417
93.378 148.324 186.937
subtotal
LIABILITIES
58.753 39.398 264.156
Total accounts payable:
10.305 16.545 19.221
Accounts payable excluding payable do automakers
13.315 14.491 22.397
Payroll and related charges
- - 1.280
Deferred revenues
1.793 1.659 3.633
Income tax and social contribution
15.396 24.338 30.608
Deferred income tax and social contribution
2.380 4.693 5.476
Taxes other tha income
5.579 7.319 6.210
Advances from customers
1.511 13.171 12.463
other
50.279 82.216 101.288
52.371 53.210 47.533
Reserve for contingencies
- - 11.369
Deferred revenues
5.734 6.246 7.402
Deferred income tax and social contribution
2.680 - 8.020
Taxes other tha income
60.785 59.456 74.324
111.064 141.672 175.612
subtotal
WORKING CAPITAL (17.686) 6.652 11.325
% OVER REVENUES -2,8% 0,8% 1,0%
56

58. Addendum 3:
Third party x own capital cost
57

59. Cost of third party capital
R$ / million
We estimated that the cost of third party capital will decrease 3 p.p. due to CDI rate decrease
58

60. Cost of own capital
R$ / million
In 2007 the difference between the cost of own capital and third party capital cost will be 5.3 p.p. .
In 2006 this difference was 1.9 p.p.
59

61. Addendum 4:
Earnings Release
60