Investor Relations Presentation November, 2018.

, AGENDA

1 COMPANY OVERVIEW 2 COMPETITIVE ADVANTAGES 3 MAIN BUSINESS DIVISIONS 1 2 FLEET RENTAL 3 SEMINOVOS 4 FINANCIALS 5 APPENDIX: EARNINGS RELEASE 3Q18

2 COMPANY HISTORY: MILESTONES

Phase III: Phase IV: Digital Phase I: Rise to #1 Phase II: Expansion Reaching Scale Transformation

Expansion strategy PE firm DL&J enters at IPO with a Market Cap of Founded in Belo by adjacencies: a market cap of US$295 mm 100,000 cars Strategic partnership Horizonte with 6 Seminovos US$150 mm with Hertz - VW Beetles 1.000 cars 150,000 cars

1979 1984 1992 1999 2006 2014 2018

1973 1982 1991 1997 2005 2011 2017

+222,000 cars Beginning of Market Cap Expasion to 11 Expansion Internationalization Expansion strategy by 50,000 cars Digital Transformation US$3.8 Billion (09/30/18) capital cities strategy through Franchising adjacencies: Fleet becoming market by adjacencies: Rental leader in 1981 Franchising

3 CAR RENTAL FLEET RENTAL • 156,436 CARS •51,236 CARS • 8.3 MILLION CLIENTS • +1,000 CLIENTS • 395 LOCATIONS • 304 EMPLOYEES INTEGRATED • 4,788 EMPLOYEES SYNERGIES: BARGAINING POWER BUSINESS COST REDUCTION CROSS SELLING PLATFORM OVERHEAD AND SUPPORT: 1,335 EMPLOYEES

THIS INTEGRATED PLATFORM GIVES LOCALIZA FRANCHISING USED CAR SALES FLEXIBILITY AND SUPERIOR • 14,505 CARS • 48% SOLD TO FINAL CONSUMER PERFORMANCE • 127 LOCATIONS IN BRASIL • 101 STORES • 61 LOCATIONS IN SOUTH AMERICA • 67 CITIES • 33 EMPLOYEES • 1,317 EMPLOYEES

3Q18 4 COMPANY: BUSINESS PLATFORM DIVISIONS

CAR RENTAL FRANCHISING FLEET RENTAL USED CAR SALES SELLS THE USED CARS MAINLY TO RENTS TO INDIVIDUALS AND CONTRIBUTES TO EXPAND OUTSOURCES FLEET FOR 2-3 FINAL CONSUMERS AFTER THE COMPANIES AT AIRPORTS AND YEARS’ TERM CONTRACTS. RENTAL AND ESTIMATES THE OFF AIRPORT LOCATIONS. LOCALIZA’S NETWORK. RESIDUAL VALUES.

• HIGH FIXED COST STRUCTURE • HIGH PROFITABILITY • LOW FIXED COST STRUCTURE • EFFICIENCY AREA RESPONSIBLE TO SELL • STANDARDIZED FLEET • LOW CONTRIBUTION TO EARNINGS • CUSTOMIZED FLEET CARS FROM RAC AND FLEET DIVISIONS • 1 YEAR CYCLE • RESPONSIBLE TO DEVELOP NEW • 2-3 YEARS CYCLE • KNOW HOW OF USED CARS MARKET • HIGHER ENTRY BARRIERS MARKETS • LOWER ENTRY BARRIERS • LOW DEPENDENCE OF INTERMEDIATES • GAINS OF SCALE • CAPITAL INTENSIVE • ALLOWING FOR LOWER DEPRECIATION • CAPITAL INTENSIVE • CONCENTRATED AIRPORT MARKET • FRAGMENTED OFF AIRPORT MARKET

5 BIG NUMBERS

✓ Market leader with market cap of R$ 15.2 billion on September 30, 2018

✓ End of period fleet of 222,177 cars in 9M18

✓ R$5.6 billion of net revenues in 9M18

✓ Rented fleet growth of 44.8% in the Car Rental and 21.3% in the Fleet Rental Division in 9M18 ✓ ROIC of 12.8%, spread of 7.8 p.p compared with the cost of debt after taxes

6 Consolidated breakdown – 9M18 R$ million

Net Revenues EBITDA EBIT* R$5,636 R$1,142 R$907

624 11% 1,806 595 32% 66% 401 622 35% 55% 312 34% 3,205 57% 119 10%

*Seminovos results recorded in the Car Rental and Fleet Rental Divisions

COMPANY’S PROFITABILITY COMES FROM CAR RENTAL AND FLEET RENTAL DIVISIONS 7 AGENDA

1 COMPANY OVERVIEW 2 COMPETITIVE ADVANTAGES 3 MAIN BUSINESS DIVISIONS 1 CAR RENTAL 2 FLEET RENTAL 3 SEMINOVOS 4 FINANCIALS 5 APPENDIX: EARNINGS RELEASE 3Q18

8 COMPETITIVE ADVANTAGES

PROFITABILITY COMES FROM RENTAL DIVISIONS

RAISING BUYING RENTINGALUGUEL SELLING MONEY CARS DECARS CARS CARS

CASH TO RENEW THE FLEET OR PAY DEBT

45 YEARS OF EXPERIENCE IN MANAGING ASSETS AND GENERATING VALUE. 9 COMPETITIVE ADVANTAGES

RAISING BUYING RENTING SELLING MONEY CARS CARS CARS RAISING MONEY INVESTMENT GRADE: LOWER SPREADS AND LONGER TENORS

Player A Player B/C Player D brAAA S&P AA (bra) Fitch Aa1.br Moody’s A+(bra) Fitch A+(bra) Fitch National scale brAA+ S&P AAA(bra) Fitch

BB Fitch B1 Moody´s Ba2 Moody’s B+ S&P BB S&P Global scale B+ S&P BB+ S&P

LOCALIZA RAISES MONEY WITH BETTER CONDITIONS THEN ITS COMPETITORS.

Source: Bloomberg October, 2018. 10 COMPETITIVE ADVANTAGES

RAISING BUYING RENTING SELLING CARS RAISING MONEY MONEY CARS CARS 2018 Bonds - R$ million

% CDI

140%

135% Player A R$182 130% 123.1% 125% Player D R$99 Player C R$350 Player A R$130 119.9% Localiza R$800,0 123.0% 119.0% 112.3% 120% Player A R$250 121.0% Player A R$138 115% 118.4% Player B R$500 117.5% Player C R$411 114.7% 110% Player C R$88 Player C R$113.0% 113.2% 105% Player B R$150,0 110.6% Localiza Fleet R$300 Localiza R$200 107.9% 112.0% Localiza R$300 100% 108.0% 95%

90% 1.5 2.5 3.5 4.5 5.5 6.5 7.5 8.5 9.5 Years

11 COMPETITIVE ADVANTAGES BUYING CARS RAISING BUYING RENTING SELLING MONEY CARS CARS CARS

Number of cars purchased – 9M18 Localiza’s share in the internal sales of the OEMs* - 9M18

111,383

41,318 49,738

Localiza* Player A Player B+C* 7.1%

*it includes Franchisees *it considers the 12 OEMs listed above

LOCALIZA BUYS CARS WITH BETTER CONDITIONS DUE TO THE VOLUME OF PURCHASES. Source: website of each company and ANFAVEA. 12 COMPETITIVE ADVANTAGES RENTING CARS RAISING BUYING RENTING SELLING MONEY CARS CARS CARS

BRAZILIAN DISTRIBUTION

# OF LOCATIONS # OF CITIES

522 404 360 186 145 96 218

Localiza Competitors Localiza Player B Player A

Most recognized and desired brand in the category Leader in loyalty and superior quality • Co-branding with Hertz, the most well-known brand, with presence • Winner of Época ReclameAqui award for the 3rd consecutive year in +150 countries • Customer superior satisfaction (NPS) • 24th most valuable brand in in 2017 (Interbrand ranking) • Culture of delighting • Brand with the largest awareness and preference in the sector • Modern and diversified fleet • Presence online and offline

Source: Locations and cities: Localiza 3Q18 results and each company’s website as of As of 10/24/18 for its competitors 13 COMPETITIVE ADVANTAGENS FLEET RENTAL

RAINSING BUYING CARS FLEET RENTAL SELLING CARS MONEY

Innovations that generate strategic Good interaction with customers, information for the customer´s business and New ways of developing technologies facilitating the resolution of problems added value for the business with agility and customer collaboration

14 COMPETITIVE ADVANTAGES

SELLING CARS RAISING BUYING RENTING SELLING MONEY CARS CARS CARS

Buffer: additional fleet Distribution in Brazil Sales to final consumer Big data during peaks of demand

101 points of sale Lower depreciation Best understanding of costumer preference 67 cities in Brazil Loyalty of customers, Pricing estimate generating good repurchase rates and - Depreciation Digital Sale indication + Residual Value Input for car purchase

EFFICIENCY AREA TO REDUCE DEPRECIATION 15 COMPETITIVE ADVANTAGES WITH OPERATIONAL EXCELLENCE RAISING BUYING RENTING SELLING MONEY CARS CARS CARS

CAR PREPARATION DELIVERY IN THE BRANCHES OPERATING CAR CAR DECOMISSIONING

• Quality control of the cars • Transport tracking • Maintanance and repair • Car checking delivered by OEM’S • Logistic management • Traffic fines processing • Preparation for sales • Car licensing optimization • Licensing renewal • Transportation to Seminovos stores

16 ... AND INNOVATION RAISING BUYING RENTING SELLING MONEY CARS CARS CARS

Digital register and Chatbot® self check-in Localiza Fast Anti fraud Facebook / messenger Automatic capture of the driver’s Mobile-based counter Taylor-made solution for booking assistant license for new costumers and bypass. Customers can pick- fraud prevention in car expedite check-in. up car bypassing our counter rentals

Connected Fleet Mobile Solution Online Fleet Rental Integrated technology solution that Integrated mobile solution to Fast diagnosis and fleet rental services for drivers friendly dashboard for increases competitive intelligence and and contract manager. leverages productivity gains. fleet manager.

DIFFERENTIATED OFFER WITH HIGHER VALUE ADDED TO CUSTOMERS 17 CAR RENTAL: FINANCIAL CYCLE 2017 Per car Car sale revenue 1 year cycle net of SG&A R$36.0

Revenue

1 2 3 4 5 6 Expenses , interest and tax 7 8 9 10 11 12 R$38.2 Average car price (2 years) Car Rental Seminovos Total Per operating car Per car sold 1 year R$ % R$ % R$ Net revenues 19.6 100.0% 38.8 100.0% 58.4 Costs - fixed and variable (9.2) -47.1% (9.2) SG&A (3.5) -18.0% (2.9) -7.4% (6.4) Net revenues of car sold 36.0 92.6% 36.0 Book value of car sold (33.9) -87.2% (33.9) EBITDA 6.9 34.9% 2.1 5.4% 9.0 Cars Depreciation (1.2) -3.2% (1.2) Others depreciation (0.3) -1.3% (0.1) -0.3% (0.4) Financial expenses (2.4) -6.3% (2.4) Taxes (1.5) -7.6% 0.4 1.0% (1.1) Net Income (Loss) 5.1 26.0% (1.3) -3.4% 3.8 NOPAT 5.7 ROIC (it consideres only cars in capital invested) 14.9% Cost of debt after taxes 7.6% 18 FLEET RENTAL: FINANCIAL CYCLE 2017 Car sale revenue Per car net of SG&A 3 year cycle R$31.8 Revenue

1 2 3 4 5 6 Expenses , interest and tax 31 32 33 34 35 36 R$43.1 Average car price (3 years) Fleet Rental Seminovos Total Per operating car Per car sold 3 years R$ % Seminovos % R$ Net revenues 60.5 100.0% 34.1 100.0% 94.6 Costs - fixed and variable (17.9) -29.7% (17.9) SG&A (5.1) -8.4% (2.4) -7.0% (7.5) Net revenues of car sold 31.7 93.0% 31.7 Book value of car sold (28.7) -84.1% (28.7) EBITDA 37.5 61.9% 3.0 8.9% 40.5 Cars Depreciation (9.3) -27.3% (9.3) Others depreciation (0.3) -0.5% (0.1) -0.4% (0.4) Financial expenses (6.5) -19.1% (6.5) Taxes (8.4) -13.9% 2.9 8.6% (5.5) Net Income (Loss) 28.8 47.6% (10.0) -29.4% 18.8 Net Income (Loss) - per year 9.6 47.6% (3.3) -29.4% 6.3 NOPAT 7.9 ROIC (it consideres only cars in capital invested) 18.4% Cost of debt after taxes 7.6% 19 ROIC versus COST OF DEBT AFTER TAXES

17.8% 16.7% 17.0% 15.4% 15.6%* 12.8% 7.5p.p. 10.7p.p. 9.8p.p. 5.2p.p. 8.0p.p. 7,8p.p. 9.5% 10.2% 8.0% 7.6% 6.0% 5.0%

2013 2014 2015 2016 2017 9M18 ROIC Cost of debt after taxes

2013 2014 2015 2016 2017 9M18 ROE 29.0% 30.6% 24.3% 21.1% 25.6% 24.5%

(*)Adjusted by the one-time costs incurred - Hertz Brasil acquisition and Franchisees incorporation ROIC considered each year´s effective income tax and social contribution rate

STABLE SPREAD WITH STRONG PACE OF GROWTH 20 AGENDA

1 COMPANY OVERVIEW 2 COMPETITIVE ADVANTAGES 3 MAIN BUSINESS DIVISIONS 1 CAR RENTAL 2 FLEET RENTAL 3 SEMINOVOS 4 FINANCIALS 5 APPENDIX: EARNINGS RELEASE 3Q18

21 CAR RENTAL: MARKET SHARE GROSS REVENUE - CAR RENTAL

MARKET SIZE 2016: MARKET SIZE 2017: R$5.8 BILLION R$6.5 BILLION

29.3%* 32.3%*

OTHERS 52.2% OTHERS 11.8% 46.0% PLAYER A 6.7% 13.9% 7.8% PLAYER A PLAYER B PLAYER B

*Localiza’s market share includes revenues from franchisees in Brazil. There are no public data on the revenue of other players’ franchisees.

Source: ABLA, considering the breakdown reported applied on the revenues 22 CAR RENTAL LOCATIONS IN BRAZIL

AIRPORT LOCATIONS OFF – AIRPORT LOCATIONS

Localiza 1/3 OF CAR RENTAL’S 99 REVENUES COMES Player A 101 FROM AIRPORT Player E LOCATIONS 26

AIRPORT Player A Player B Player B LOCATIONS 51 49 Others 157 OFF -AIRPORT Others LOCATIONS Player E 38 33 Localiza 7,852 423

Localiza Player A Player B Player E Others

OFF – AIRPORT MARKET IS STILL FRAGMENTED

Source: ABLA, each company’s website on 10/24/2018 and Localiza’s 3Q18 Earnings Release. 23 . CAR RENTAL: DRIVERS LOCALIZA RAC USERS (MILLION)* 84.0 8.3 64.0 7.6 6.4 5.7

4.3 3.8 8.3 3.1

Adult population (age>20 Credit Card owners Users years) Class A+B+C 2012 2013 2014 2015 2016 2017 9M18 In million Sources: IPEADATA, Localiza’s loyalty program and BCB as of 2016 *considering only the individual segment. *Considering that each credit card owner owns 1,3 credit cards, BCB estimated that were 84 million active credit cards in Brazil in 2016.

CAR RENTAL AFFORDABILITY 937 950 880 788 850 724 678 750 622 650 510 545 550 38% 37% 35% 465 31% 415 450 300 350 380 350 260 200 240 18% 250 180 16% 15% 15% 27% 22% 20% 13% 13% 12% 11% 150 9% 8% 50 -50 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Monthly minimum salary (R$) Daily rental price over minimum salary (%) Source: BCB and Localiza rates

INCREASING AFFORDABILITY AND LOW PENETRATION BRINGS GROWTH OPPORTUNITIES. 24 CAR RENTAL: DRIVERS

DEMAND FORECASTING AIRLINE MARKET EVOLUTION PASSANGERS ESTIMATE (IN MILLION) RPK (REVENUE SEAT KILOMETER) IN MILLION

93.3 94.4 401 87.0 88.2 89.0 90.8 81.5 70.3 267.8 56.9 49.7 45.7 201.3 40.6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2027 2037 * * Annualized with the available data until November/17 Source: Ministério dos Transportes / Transportation Ministry (September/2017) Source: ANAC

EVOLUTION IN AIRLINE MARKET BRINGS GROWTH OPPORTUNITIES .

25 AGENDA

1 COMPANY OVERVIEW 2 COMPETITIVE ADVANTAGES 3 MAIN BUSINESS DIVISIONS 1 CAR RENTAL 2 FLEET RENTAL 3 SEMINOVOS 4 FINANCIALS 5 APPENDIX: EARNINGS RELEASE 3Q18

26 FLEET RENTAL: MARKET SHARE GROSS REVENUE - FLEET RENTAL

MARKET SIZE 2016: MARKET SIZE 2017: R$8 BILLION R$9 BILLION

8.3% PLAYER A 8.4% PLAYER A 2.6% 2.6% 4.4% PLAYER B 3.6% PLAYER B PLAYER C 5.5% 7.6% PLAYER C OTHERS 79.1% OTHERS 77.9%

Source: ABLA, considering the breakdown reported applied on the revenues 27 FLEET RENTAL: DRIVERS

BRAZILIAN MARKET WORLD

Corporate fleet: 58.3% 5,000,000* 46.9% 37.4%

24.5% 16.5% 13.3% 8.8% 8.9% Rented fleet: 440,737**

41,266 Source: Datamonitor for European countries and Localiza’s estimate for Brazil *Frost&Sullivan research **Localiza estimates

LOW PENETRATION OF RENTED FLEET IN BRAZIL

28 AGENDA

1 COMPANY OVERVIEW 2 COMPETITIVE ADVANTAGES 3 MAIN BUSINESS DIVISIONS 1 CAR RENTAL 2 FLEET RENTAL 3 SEMINOVOS 4 FINANCIALS 5 APPENDIX: EARNINGS RELEASE 3Q18

29 SEMINOVOS: NEW vs USED CAR MARKET (BRAZIL)

10.7 10.7*Used cars 10.1 9.9 10.0 9.4 8.9 9.0 8.4

4.0x 2.5x 2.6x 2.5x 2.6x 3.1x 5.0x 4.9x 4.5x

3.3 3.5 3.6 3.6 3.3 2.5 2.4* New cars 2.0 2.2

2010 2011 2012 2013 2014 2015 2016 2017 until October Carros usados Carros novos 2018 (*)Annualized

TOTAL MARKET OF 13.1 MILLION CARS.

Source: Fenabrave (light and commercial cars) October 31,2018. 30 SEMINOVOS: DRIVERS AFFORDABILITY AND PENETRATION

AFFORDABILITY TO BUY CARS – AVERAGE PUBLIC PRICE # OF INHABITANTS PER CAR OF ECONOMIC CARS

USA 1.2 Australia 1.4 Italy 1.5 1,100 90 Canada 1.6 84 934 954 Japan 1.6 80 900 71 788 880 Spain 1.7 69 724 70 61 678 France 1.7 700 622 60 UK 545 1.7 465 510 50 Austria 1.7 500 55 51 49 Germany 47 47 40 1.7 415 43 43 43 300 380 41 41 30 Belgium 1.8 300 350 Sweden 1.9 20 100 Czech Republic 1.9 10 South Korea 2.5 -100 - 3.3 20052006200720082009201020112012201320142015201620172018 Mexico 3.5 Minimum wage (R$) Minimum wages needed to buy a new car Brasil 4.8

Source: Anfavea, Bradesco. Source: BCB and Localiza Reference: for calculation was considered the cheapest car in our fleet 31 SEMINOVOS: CARS SALES OPERATING DATA 0.8% 30.5% 4.2%

Brand new- 2017 Used cars – 2017 Up to 2 years - 2017 2,172,235 10,730,763 296,756

Main players

Examples • Retailers • Dealers • Rental Operators

Points of sale • 48,000 (Fenauto) • 5,535 (Anfavea) • +137 (Unidas, Movida, Locamerica)

Source: Anfavea 2018 e Fenabrave / Unidas, Locamerica e Movida 1Q18. 32 AGENDA

1 COMPANY OVERVIEW 2 COMPETITIVE ADVANTAGES 3 MAIN BUSINESS DIVISIONS 1 CAR RENTAL 2 FLEET RENTAL 3 SEMINOVOS 4 FINANCIALS 5 APPENDIX: EARNINGS RELEASE 3Q18

33 3Q18 OPERATING HIGHLIGHTS

Average rented fleet – Car Rental Average rented fleet – Fleet Rental

98,199 43,421 72,200 36,009

3Q17 3Q18 3Q17 3Q18

# of cars sold End of period fleet

222,177 185,390 14,505 13,514 51,236 30,084 44,655 23,941

156,436 127,221

3Q17 3Q18 3Q17 3Q18 Car rental Fleet rental Franchising 34 3Q18 FINANCIAL HIGHLIGHTS

Net revenues (R$ million) EBITDA (R$ million)

396.2 2,073.2 332.3 1,563.4 21.5 1,214.2 898.4 +38,0%+38,6% 665.0 859.04T/4T

3Q17 3Q18 3Q17 adjusted 3Q18

Rental Seminovos

EBIT (R$ million) Net income (R$ million)

300.5 263.9 21.5 159.9 139.5 16.3

3Q17 adjusted 3Q18 3Q17 adjusted 3Q18

One-time costs incurred - Hertz Brasil acquisition and Franchisees incorporation 35 CAR RENTAL Average rented fleet

93,424 98,199 69,762 64,536 72,200 51,515 39,475 42,999 43,315

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18 Net revenues (R$ million)

1,848.5 1,793.7 1,428.0 1,163.5 1,284.4 1,258.0 1,273.6 637.4 472.6

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

STRONG GROWTH OF RENTED FLEET AND REVENUE 36 CAR RENTAL

Average rental rate (in R$) Utilization rate (%)

81.0% 81.1% 79.0% 78.5% 78.7% 79.3 77.0% 75.8% 74.1 74.1 74.0 74.7 72.5 69.5

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

POSITIVE TREND OF THE AVERAGE RENTAL RATE

37 CAR RENTAL NETWORK EVOLUTION

Number of car rental locations Brazil and abroad

588 583 542 540 564 561 71 61 63 64 70 70 133 127 193 172 174 158

384 395 286 304 320 333 +11

2013 2014 2015 2016 2017 3Q18 Localiza's branches - Brazil Franchisees' branches - Brazil Franchisees' branches - abroad

11 NEW OWNED BRANCHES

38 FLEET RENTAL Average rented fleet

50,000

45,000 41,266 43,421 40,000 35,424 36,009

35,000 34,013 30,121 28,787 30,280 31,222

30,000

25,000

20,000

15,000

10,000

5,000

- 2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18 Net revenues (R$ million)

742.1 608.5 651.8 624.3 575.9 571.9 538.2

188.5 217.4

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

MAINTENANCE OF THE GROWTH RATE 39 NET INVESTMENT Car purchase and sales (quantity) 52,860 28,854 143,414 43,820 9,183 19,384 7,103 (273) 8,162 107,852 108,271 33,272 79,804 90,554 69,744 70,621 87,833 8,162 78,998 14,380 62,641 64,032 64,305 68,449 1,935 64,451 135,252 267 57,213 44,464 88,619 100,109 8,162 30,084 23,941 64,184 267 49,051 23,674 2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18 Cars purchased Cars sold Hertz Brasil * It does not consider theft / crashed cars written off.

Net investment in fleet (R$ million) 2,303.2 1,331.5 5,754.4 1,891.9 286.5 4,536.9 947.0 4,316.6 465.0 1,310.5 233.5 3,451.2 286.5 3,205.4 278.9 3,289.6 61.9 745.6 2,483.2 2,424.7 2,278.4 2,342.6 5,467.9 2,208.9 2,026.2 2,018.2 2,044.9 9,0 1,959.8 1,747.3 3,389.3 4,030.1 286.5 1,214.2 2,415.7 898.4 1,922.4 9.0 889.4 2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18 Purchases (includes accessories) Used car sales net revenues Hertz Brasil

GROWTH OF THE FLEET TO SUPPORT STRONG DEMAND FOR RENTALS 40 NUMBER OF POINTS OF SALE

160,000

140

140,000

120 99 101 101 120,000 100 93 93

100,000 84 80 75

77 80,000 74 90,554

60

78,998 60,000 70,621 62,641 64,305 68,449 64,451 40 30,084 40,000 23,941

20 20,000

0 - 2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

Points of sale Cars sold

NEW POINTS OF SALE WILL BE OPENED TO SUPPORT FUTURE NEEDS OF FLEET RENEWAL

41 END OF PERIOD FLEET (Quantity)

222,177 194,279 185,390 14,505 13,824 13,514 51,236 143,131 44,877 44,655 117,759 125,224 124,695 14,015 14,233 13,339 13,992 34,960 34,312 33,948 32,809 156,436 135,578 127,221 94,156 70,717 77,573 76,755

2013 2014 2015 2016 2017 9M17 9M18 Car Rental Fleet Rental Franchising

CURRENT FLEET: MORE THAN 220,000 CARS

42 CONSOLIDATED NET REVENUES (R$ million)

6,058.3 5,636.1 4,439.3 3,892.2 3,928.0 4,248.8 3,506.2 3,451.2 3,205.4 2,342.5 2,424.7 1,747.3 2,018.2 2,044.9 2,073.2 1,563.4 2,607.1 1,214.2 1,758.9 1,874.0 1,883.1 2,096.8 1,824.1 2,430.7 898.4 665.0 859.0 2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18 Rental Used car sales

32.6% INCREASE IN CONSOLIDATED NET REVENUE

43 CONSOLIDATED EBITDA (R$ million)

1,314.2 1,141.2 1,015.6 74.0 916.5 969.8 934.8 927.9 21.5

332.3 396.2 21.5

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18 Adjusted adjusted adjusted One-time costs incurred - Hertz Brasil acquisition and Franchisees incorporation EBITDA margin:

Divisions 2013 2014* 2015 2016 2017 9M17 9M18 3Q17 3Q18

Car Rental 36.8% 38.7% 31.8% 32.3% 34.9%** 34.2%** 34.3% 32.2%** 35.1% Fleet Rental 65.5% 60.0% 62.2% 64.5% 61.9%** 62.7% 64.2% 63.4% 66.7% Rental Consolidated 46.5% 45.3% 41.7% 42.3% 42.6%** 42.6%** 42.1% 41.0%** 43.1%

Used Car Sales 5.7% 6.0% 7.3% 5.5% 5.9% 6.2% 3.7% 6.6% 2.1% (*) It considers the new appropriation criteria of the overhead, which is also appropriated to Seminovos. (**) Adjusted by the one-time costs incurred - Hertz Brasil acquisition and Franchisees incorporation

GAINS OF MARGINS IN CAR RENTAL AND FLEET RENTAL 44 AVERAGE ANNUALIZED DEPRECIATION PER CAR (In R$)

Car Rental

1,452.4 1,270.0 1,251.2 1,250.1 1,351.4 1,222.6 1,305.2 946.5 622.1

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

Fleet Rental 4,592.3 4,202.1 3,935.2 3,714.0 3,475.6 3,747.4 3,104.3 3,105.1 3,012.6

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

INCREASE IN DEPRECIATION IN THE QUARTER AS A RESULT OF LOWER INFLATION ON NEW CAR PRICES

45 CONSOLIDATED EBIT (R$ million)

1,043.1 74.0 907.3 726.7 735.5 771.1 729.4 652.1 21.5

263.9 300.5 21.5

2013 2014 2015 2016 2017 Adjusted 9M17 adjusted 9M18 3Q17 adjusted 3Q18 One-time costs incurred - Hertz Brasil acquisition and Franchisees incorporation

Divisions 2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

Car Rental 32.8% 36.2% 34.3% 30.2% 35.5%* 34.8%* 32.9% 34.4%* 29.8% Fleet Rental 45.1% 44.3% 48.9% 51.2% 51.4%* 52.7% 50.0% 53.1% 50.4%

Consolidated 37.1% 38.8% 39.1% 36.8% 40.0%* 40.0%* 37.3% 39.7%* 35.0% (*) Adjusted by the one-time costs incurred - Hertz Brasil acquisition and Franchisees incorporation

13.9% INCREASE IN EBIT 46 CONSOLIDATED NET INCOME (R$ million)

563.4 57.7 477.8 384.3 410.6 402.4 409.3 389.0 16.3

139.5 159.9 16.3

2013 2014 2015 2016 2017 Adjusted 9M17 adjusted 9M18 3Q17 adjusted 3Q18

One-time costs incurred - Hertz Brasil acquisition and Franchisees incorporation, after taxes

Reconciliation EBITDA x Net income 2013 2014 2015 2016 2017* Var. R$ Var. % 9M17* 9M18 Var. R$ Var. % 3Q17* 3Q18 Var. R$ Var. % Consolidated EBITDA 916.5 969.8 934.8 1,015.6 1,314.2 298.6 29.4% 927.9 1,141.2 213.3 23.0% 332.3 396.2 63.9 19.2% Cars depreciation (229.0) (207.4) (163.6) (206.3) (232.0) (25.7) 12.5% (170.2) (201.3) (31.1) 18.3% (58.2) (84.5) (26.3) 45.2% Other property depreciation and amortization (35.4) (35.7) (35.7) (38.2) (39.1) (0.9) 2.4% (28.3) (32.6) (4.3) 15.2% (10.2) (11.2) (1.0) 9.8% EBIT 652.1 726.7 735.5 771.1 1,043.1 272.0 35.3% 729.4 907.3 177.9 24.4% 263.9 300.5 36.6 13.9% Financial expenses, net (110.6) (151.1) (202.7) (243.5) (315.0) (71.5) 29.4% (221.3) (261.4) (40.1) 18.1% (79.4) (83.8) (4.4) 5.5% Income tax and social contribution (157.2) (165.0) (130.4) (118.3) (164.7) (46.4) 39.2% (119.1) (168.1) (49.0) 41.1% (45.0) (56.8) (11.8) 26.2% Net income of the period 384.3 410.6 402.4 409.3 563.4 154.1 37.6% 389.0 477.8 88.8 22.8% 139.5 159.9 20.4 14.6% (*)Adjusted by the one-time costs incurred - Hertz Brasil acquisition and Franchisees incorporation

14.6% INCREASE IN NET INCOME 47 FREE CASH FLOW Free cash flow - R$ million 2013 2014 2015 2016 2017 9M18 EBITDA 916.5 969.8 934.8 1,015.60 1314.2* 1,141.2 Used car sale revenue, net from taxes (1,747.3) (2,018.2) (2,044.9) (2,342.5) (3,451.2) (3,205.4) Depreciated cost of cars sold 1,543.8 1,777.0 1,769.1 2,102.5 3,106.6 2,961.2

(-) Income tax and social contribution (108.5) (113.1) (110.7) (93.3) (108.3) (99.7) Operations Change in working capital 2.9 (27.1) (30.0) (40.8) (47.9) (111.1) Cash generated by rental operations 607.4 588.4 518.3 641.5 813.4 686.2 Used car sale revenue, net from taxes – fleet renewal 1,747.3 2,018.2 2,036.3 2,342.5 3,451.2 3,205.4 Fleet renewal investment (1,819.7) (2,197.7) (2,278.4) (2,563.6) (3,660.9) (3,323.1) Change in accounts payable to car suppliers for fleet renewal 144.3 120.0 (25.4) 219.9 227.6 287.7 Net investment for fleet renewal 71.9 (59.5) (267.5) (1.2) 17.9 170.0 Capex -Capex renewal Fleet renewal – quantity 62,641 70,621 64,032 68,449 90,554 78,998 Investment, property and intangible (47.5) (46.3) (29.7) (42.2) (48.8) (29.4) Free cash flow from operations, before growth 631.8 482.6 221.1 598.1 782.5 826.8 Fleet (growth) investment / Used car sale revenue, net from taxes – fleet reduction (209.4) (286.8) 8.6 (726.0) (1,807.0) (1,213.8) Change in accounts payable to car suppliers for fleet growth (54.6) 214.4 (23.9) 26.8 168.7 173.7 Hertz Brazil acquisition - fleet - - - - (286.5) - Fleet growth capex (264.0) (72.4) (15.3) (699.2) (1,924.8) (1,040.1) Capex Capex - Growth Fleet increase / (reduction) – quantity 7,103 9,183 (273) 19,384 52,860 28,854 Free cash flow after growth 367.8 410.2 205.8 (101.1) (1,142.3) (213.3)

Hertz Acquisition (Except fleet) / Incurred one-time costs effect - - - - (120.7) - non-

Capex -Capex New headquarters construction and furniture (6.5) (148.3) (30.7) (84.4) (126.2) - recurring recurring Free cash generated before the cash effects of discounts and anticipation of payables to suppliers 361.3 261.9 175.1 (185.5) (1,389.2) (213.3) Cash effects of discount of credit card receivables and anticipation of payables to suppliers (**) - - (71.9) 98.0 88.3 (288.0) Free cash flow before interest 361.3 261.9 103.2 (87.5) (1,300.9) (501.3)

In the free cash flow, short-term financial assets were considered as cash equivalents since they have immediately liquidity (*) Adjusted by one-time costs incurred -Hertz Brasil acquisition and franchisees incorporation (**) Discount of credit card receivables and anticipation of accounts payable were demonstrated in a different line so that the Free Cash Flow From Operations, Before Growth considered only the contractual terms, reflecting 48 the Company's operation CHANGE IN NET DEBT (R$ million)

FLEET GROWTH INVESTMENT RESULTED IN 23.0% INCREASE OF NET DEBT

49 DEBT RATIOS (R$ million) Net debt versus fleet value

8,416.0 7,038.1

4,623.6 4,754.1 3,864.7 3,296.3 3,642.7 2,797.9 2,084.0 1,332.8 1,322.3 1,588.6

2013 2014 2015 2016 2017 9M18 Net debt Fleet value

BALANCE AT THE END OF PERIOD 2013 2014 2015 2016 2017 9M18 Net debt / Fleet value 48% 40% 44% 45% 55% 56% Net debt / annualized EBITDA 1.5x 1.4x 1.7x 2.1x 2.9x 3.1x Net debt / Equity 1.0x 0.8x 0.8x 0.9x 1.5x 1.6x EBITDA / Net financial expenses 8.3x 6.4x 4.6x 4.2x 4.2x 4.4x

NET DEBT/EBITDA STABLE IN RELATION TO 2Q18, WITH GROWING FLEET

50 DEBT MATURITY PROFILE (PRINCIPAL) (R$ million)

As of September 30, 2018

2,666.3 2,197.3

1,573.0 1,187.0 1,093.4 1,096.7

532.8 628.1 330.6 425.1 146.9 258.3

Cash and 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 to 2032 financial assets

STRONG CASH POSITION TO SUPPORT COMPANY’S GROWTH

51 ROIC VERSUS COST OF DEBT AFTER TAXES

17.8% 16.7% 17.0% 15.4% 15.6%* 12.8% 7.5p.p. 10.7p.p. 9.8p.p. 5.2p.p. 8.0p.p. 7.8 p.p. 9.5% 10.2% 8.0% 7.6% 6.0% 5.0%

2013 2014 2015 2016 2017 9M18 annualized ROIC Cost of debt after taxes

(*)Adjusted by the one-time costs incurred - Hertz Brasil acquisition and Franchisees incorporation ROIC considered each year´s effective income tax and social contribution rate

STRONG PACE OF GROWTH WITH VALUE CREATION

21 DISCLAIMER

Website: www.localiza.com/ir E-mail: [email protected] Phone: 55 31 3247-7024

The material presented 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 projections 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.

This presentation does not constitute an offer, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.

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