70´s

The Company was established in 1973 as a small car rental location in downtown Belo Horizonte, State of Minas Gerais, Brazil. It started up its activities with 6 used and financed Volkswagen Beetles.

At the end of the 1970’s, the Company began its expansion, opening its first branch in Vitória in the State of Espírito Santo, Brazil. A while after it was already present in Rio de Janeiro, Salvador, São Luiz and Fortaleza. As the competitors chose to concentrate its activities in the South and Southeast regions of the country, the Company decided for a different strategy. It concentrated its expansion plan in the Northeast region and in less than 3 years it was present in most capital cities in that area.

80’s

By 1981, Localiza was the largest car rental company in the Brazilian market in number of rental locations. In order to further expand its network, the Company began its franchising activities in Brazil in 1985. Through its subsidiary, Localiza Franchising, the Company licensed the first 6 franchises. In the early 1990’s, the Company began its franchising activities abroad by opening franchised rental locations in Argentina.

90’s

Also in the early 1990’s, the Company began selling its cars directly to final customers in the process of renewing its fleet l from both Car and Fleet Rental Divisions with the beginning of its Used Car Sales’s operations, Seminovos Localiza.

In 1997 the founding partners sold a share of 33.33% of the Company to DLJ Merchant Banking, a private equity company, seeking to improve its potential to access international capital markets. Also in 1997, the Company accessed international capital market through the issuance of an 8-year-term senior notes registered at the US Securities and Exchange Commission. In that same year the Company initiated the operations of a subsidiary, Total Fleet,to operate in the fleet rental business segment with long-term contracts, independently.

00’s

On May 6th, 2005 the Brazilian Securities Exchange Commission (CVM) granted Localiza registration as a publicly-held company, authorizing the public trading of its stocks at BM&FBovespa. Localiza became public by making an initial public offering (IPO) of common shares when DLJ sold its entire shareholding position. Trading began on May 23rd, 2005 with the offering of 21,477,500 common shares, which represented approximately 34.40% of the capital.

The Company concluded a primary distribution of 3,825,000 shares on April 20, 2006, raising BRL156.8 million in funds (follow-on). In this same public offer, 5,785,714 shares owned by the founding partners were offered through a secondary distribution.

On December 15th, 2011, the Board of Directors approved an American Depositary Receipts Level I Program of the Company (“ADRs Program”), without the issuance of new shares. The ADR Program was approved by CVM on May 22nd, 2012, and negotiations began on June 5th of that same year.

On January 2nd, 2012 Localiza’s shares (RENT3) began to compose the Bovespa Index’s (Ibovespa) portfolio. The entrance of the Company in such indexes demonstrated trustfulness and recognition that Localiza obtained among domestic and international investors, besides enabling liquidity increase of RENT3. In November 2017, Localiza held a split of its shares, which corresponded to a three-share split, thus guaranteeing greater liquidity and access of individuals to the Company.

In 2017, the Company has begun its strategic partnership with Hertz, such the Car Rental segment was renamed Localiza Hertz. The partnership is for Localiza to take over all Hertz Brasil operations and to enable customers to book worldwide through our own channels.

The year of 2017 also represented the consolidation of the Company’s greatness: Localiza achieved historical and consecutive financial and operational records. All this in a “new house”; there was the move to a new modern and sustainable headquarters, consistent with Localiza’s reality.

In the second quarter of 2018, the Company has been showing that its solid growth continues. At the close of 2Q18, Localiza’s fleet comprised 208,552 cars distributed in 589 rental locations in 7 countries in South America (Brazil, Argentina, Chile, Colombia, Paraguay, Uruguay and Ecuador). Localiza is the leader in the Brazilian market, with a share of 32.3% of the total number of market share.

Car rental: The Company rents cars in rental locations in airports as well as downtown locations. Rentals are carried out by companies and individuals on business or leisure trips, in order to meet their car rental needs outside of the cities where they maintain their residences, as well as for insurance companies and automakers which offer replacement cars to their customers in case of accidents or mechanical demage during the period of the insurance policy or warranty, respectively. The fleet of the car rental division consists mainly of flex fuel compact cars, in line with the demand and the output of automakers in Brazil. Twelve months after used for rental purpose, the cars are made available for sales for renewing the fleet. Most of the used cars are sold directly to final consumers at Seminovos Localiza stores. By avoiding intermediation costs in the sale of its cars, the Company is able to reduce costs and maximize the recovery value of such assets. This occurs since sales costs are usually lower than the discounts required by the intermediary companies.

Fleet rental: Localiza Fleet Rental division, rents cars on long-term contracts to companies (periods of up to 48 months). The fleet of this division is adequate to the needs and requests of its customers, thus being more diversified in terms of models, colors and brands than the fleet of the car rental division. By the end of the contracts, Localiza Fleet Rental sells part of the used cars directly to final consumers, as it does with the car rental division’s fleet.

Franchising: The franchising division is responsible for managing and licensing franchisees by granting the right of using Localiza’s trademark, including the transfer of know-hpw required to make the business execution. The franchising business in Brazil is administered by the subsidiary Localiza Franchising Brasil S.A. and, in other countries, by Localiza itself.