The Company’s strategies are aimed at increasing its market share in the car rental business maintaining high returns. In the fleet rental business, it seeks to add value for shareholders by taking advantage of synergies with the car rental business. The Company intends to turn its targets into concrete realities through implementation of the following main strategies:

Organic expansion to take advantage of market potential

Geographic expansion by means of broadening the rental network. The Company has the largest car rental network in Brazil, in number of rental locations, and plans to expand even more the network of owned and franchised rental locations, based on its knowhow and the strength of its brand. Owing to expectations for growth in Brazil countryside, the establishment of new factories in the country’s inland and a rise in the number of Brazilian cities to be served by airline companies, Localiza plans to expand its services in Brazil, strengthening its presence all over the country. In addition, the Company intends to use the franchise system to boost the number of car rental locations inside and outside of Brazil. Its current strategy is to grow organically, rather than to grow through mergers and acquisitions. Furthermore, the projects for construction of rental locations are flexible and easy to adapt, with emphasis on high levels of functioning and low costs. Its rental locations are generally located in strategic spots and are visibly recognized and readily accessible. The Company believes that expectations for Brazilian economic growth justify its geographic expansion strategy.

Maintenance of a solid capital structure and a conservative cash management policy. The Company intends to grow with profitability and operating cash generation, as well as to maintain an adequate indebtedness profile level, obtaining long-term funding in capital markets in order to meet its needs for growth. The Company will maintain its investments in cash-generating fixed assets, which are basically cars for rental that are readily monetized to adjust operating assets to demand in order to maximize productivity. It will also continue to hedge against the risks of currency fluctuations, by placing priority on safety and liquidity when compared to profitability.