New and Used Cars Sales Scenario Operating Results Financial - PowerPoint PPT Presentation

1Q20 Results Presentation Special Fleet Outsourced? Let’s go together! 1

Agenda COVID-19 Impacts New and Used Cars Sales Scenario Operating Results Financial Results Q&A 2

COVID-19 Impacts Backlog in 03/31: 6,416 vehicles; 1Q20 Revenue Impact: ~R$10 million. Occupancy Rate in March pre-COVID-19: 81.2%; Occupancy Rate in 03/31: ~60%; Average Ticket: < short term and contracted Km; 1Q20 Revenue Impact: ~R$13 million; New depreciation per car: R$2.9 thousand / year. No impairment necessity. $ Sales: -4 thousand vehicles vs. planned; Vehicles in stock: 10.0% of fleet vs. 7.6% planned; Average Price: < due to mix, not because of price discounts; 1Q20 Gross Profit Impact : ~R$19 million. 3

COVID-19 Impacts Update in April Fleet Management 1Q20 April/20 Average Operating Fleet 72,990 73,244 Average Rented Fleet 71,350 71,818 Occupancy Rate 97.8% 98.1% Average Monthly Rate R$ 1,505 R$ 1,510 Rent a Car (excluding Franchises) 1Q20 April/20 Average Operating Fleet 64,031 65,074 Average Rented Fleet 49,183 36,362 Occupancy Rate 76.8% 55.9% Average Monthly Rate R$ 70.60 R$ 51.10 Net Car Capex 1Q20 April/20 Cars Purchased 21,570 632 Cars Sold 16,462 1,594 Net Capex 5,108 (962) Stores 05/20/2020 Total Opened Closed Rent a Car 229 197 32 Used Cars 115 106 9 4

Agenda COVID-19 Impacts New and Used Cars Sales Scenario Operating Results Financial Results Q&A 5

New and Used Car Sales Scenario New and Used Car Sales in Brazil¹ (Cars and light commercials – Million of units) 5.0x 5.0x 20,00 6,0x 4.4x 4.4x 4.3x 4.1x 18,00 4.0x 5,0x 16,00 3.0x 4,0x +2.2%² 14,00 3,0x 11.03 10.76 10.79 10.08 10.01 10.03 12,00 (5.5)%² 2,0x 10,00 1,0x 8,00 (8.2)%² +7.6%² 0,0x 6,00 3.33 2.66 2.48 2.47 2.49 -1,0x 2.36 2.17 4,00 1.99 0.58 0.53 -2,0x 2,00 0,00 -3,0x 2014 2015 2016 2017 2018 2019 1Q19 1Q20 # of New Cars Sales # of Used Cars Sales Used Cars Sales/New Cars Sales Used Cars by Age in Brazil¹ Unidas’ Sales (#) and Market Share (%)³ (Milhões de unidades) +2.1% 140.000 3.17% 2.86% 2.53% 2.02% 1.74% 14.6 5,00% 14.3 14.2 0.33% 120.000 2.7 3.5 0,00% 3.3 100.000 (5.4)%² +33.4% 1.9 64,564 80.000 2.8 3.1 -5,00% 3.3 3.1 48,394 4.5 60.000 +16.7% 41,736 0.8 -10,00% 0.8 5.8 5.7 40.000 0.7 0.7 16,710 16,462 14,111 -15,00% (5.9)%² 1.3 1.2 5.1 20.000 (6.9)%² 2.4 2.3 0.6 0.5 0 -20,00% 2017 2018 2018 Combined 2019 1Q19 1Q20 2017 2018 2019 1Q19 1Q20 # of Cars Sold Unidas' Market Share (Up to 3 year old cars sales market) Up to 3 years From 4 to 8 years From 9 to 12 years More than 12 years ¹ Source: FENAUTO, FENABRAVE considers Vehicles, Light Commercials and also sales of heavy commercials and motorcyles. ² For the changes calculation, are being considered numbers without rounding according to FENABRAVE and FENAUTO reports of each period. 6

Agenda COVID-19 Impacts New and Used Cars Sales Scenario Operating Results Financial Results Q&A 7

Fleet Fleet Composition (# of vehicles) +18.9% 169,149 164,588 4,000 4,331 142,295 131,099 3,809 4,124 80,815 75,230 59,523 52,271 46,566 31,184 30,424 85,027 84,334 27,732 78,963 74,704 2014 2015 2016 2017 2018 2019 1Q19 1Q20 Fleet Management Rent a Car Rent a Car Franchises Fleet in Demobilization (% and # of vehicles - thousand) +0.4 p.p. 12.3% 9.6% 10.0% 9.0% 8.6% 7.7% 5.5% 4.2% 25,00 +23.1% 00% 20,00 16.8 +40.0% -20% 14.0 13.7 15,00 10.0 -40% 10,00 -60% 3.7 2.8 5,00 2.0 1.5 -80% - -100% 2014 2015 2016 2017 2018 2019 1Q19 1Q20 Used Cars Sales Inventory % of Inventory/Total Fleet 8

Investment in Fleet Net Fleet Investment (R$ million) 2,043.7 +33.5% 4,562.2 1,530.7 90.0 1,536.0 3,151.9 (12.2)% 2,944.8 2,518.5 517.9 454.7 334.2 1,621.2 1,408.8 193.6 262.5 (23.3) 1,041.3 1,069.9 859.4 615.2 90.0 517.9 525.2 523.4 509.9 352.3 316.3 329.0 255.4 2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20 Cars Acquisition Car Sales Revenues NTC Serviços Ltda. Acquisition Net Fleet Investment (# of vehicles) +36.5% 33,384 97,948 24,455 26,316 4,455 72,849 (56.5)% 68,702 64,564 48,394 11,756 5,108 3,037 42,386 339 2,612 (3,280) 25,867 21,570 19,747 16,710 16,462 14,177 14,111 13,068 12,729 12,402 4,455 11,565 9,122 2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20 Cars Purchased Cars Sold NTC Serviços Ltda. Acquisition 9

Fleet Management (1/3) Special Vehicles Addressable Market in Brazil (vehicles, thousand) Growth guarantee for 2020; High potential for 567 synergies Specialized segment; 2.6 Zetta Frotas Mercado endereçável Presence 8 states os Revenue R$102.8 million EBITDA R$40.1 million es Net Income R$7.7 million es Net Debt R$103.7 million es es 10

Fleet Management (2/3) Number of Daily Rentals (thousand) and Average Monthly Rate (R$) (2.1)% +7.7% 1,609 1,597 1,597 1,546 1,538 1,502 1,505 1,489 1,483 42.000 1.500 37.000 1.000 32.000 +12.2% CAGR (2014-2019) +25.2% 25,374 22,624 27.000 500 20,647 22.000 0 17.000 11,179 -500 +5.8% 8,232 8,335 8,057 12.000 6,421 6,069 -1.000 7.000 -1.500 2.000 2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20 -3.000 -2.000 # of Daily Rentals (thousand) Average Monthly Rate (R$) Net Revenue from Fleet Management (R$ Million) +19.4% 1,214.5 CAGR (2014-2019) +26.6% 1,017.1 930.6 522.9 +3.9% 402.4 392.0 373.8 292.4 281.3 2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20 11

Fleet Management (3/3) Consecutive quarterly record of New Contracts, both in vehicles hired and in Global Value. Future revenues to be benefited also by Zetta acquisition and by the new contracts signed in 2020 already in partnership with Unidas’ commercial force. New Contracts: Future Revenue Generation for the Fleet Management Segment +23.3% 709.0 25.000 575.0 800 +118.2% 600 335.0 314.0 309.6 306.0 20.000 +34.0% 17,098 195.1 400 140.2 2019 Results New Contracts: 2020TD 200 12,759 15.000 Revenue: R$103 million Global Value: R$358 million 00 106.7% Fleet: 2.6 thousand vehicles Fleet: 1.9 thousand vehicles 8,140 7,950 -200 10.000 7,032 5,954 -400 4,629 2,880 -600 5.000 292.4 -800 0 -1.000 2014 2015 2016 2017 2018 2019 1Q19 1Q20 1Q20 1T20 Revenue for the Receita Líquida Net Revenue next quarters # of Vehicles Global Value (R$ million) Commercial Pipeline Occupancy Rate (Rented Fleet as % of Operating Fleet) (0.3)% Var. (2014-2019) +2.9 p.p. (0.7) p.p. (0.2) p.p. 45.4 45.7 45.2 45.2 45.1 39.5 38.7 98.4% 98.2% 98.0% 97.8% 34.5 97.7% 97.0% 96.8% 29.3 96.2% 22.4 94.8% 1Q18 1T18 2Q18 2T18 3Q18 3T18 4Q18 4T18 1Q19 1T19 2Q19 2T19 3Q19 3T19 4Q19 4T19 1Q20 1T20 2Q20 2T20 2014 2015 2016 2017 2018 2018 2019 1Q19 1Q20 # Vehicles in Dispute (thousand) Combined 12

Used Cars (1/2) Revenue from Used Cars Sales (R$ Million) 3500,0 3000,0 2,518.5 +55.3% 2500,0 2000,0 1,621.2 1,411.3 1500,0 +17.4% 1000,0 615.2 525.4 524.1 352.3 316.3 255.4 500,0 0,0 2014 2015 2016 2017 2018 2018 Combinado 2019 1Q19 1T19 1Q20 1T20 2018 Combined Number of Cars Sold and Average Selling Price (R$ Thousand/Car) +0.7% +16.4% 39.0 37.4 37.1 33.5 33.5 31.4 28.4 24.8 22.1 +33.4% 64,564 48,394 41,736 +16.7% 16,710 16,462 14,111 12,729 12,402 11,565 2014 2015 2016 2017 2018 2018 Combinado 2019 1T19 1Q19 1Q20 1T20 2018 Combined 13

Used Cars (2/2) Number of Stores 115 YoY % 120,0 112 +22 stores +116.7% 13 4 + 27 stores + 99 stores 93 100,0 (10.0)% 2014 vs. 2019 18 18 6 85 6 80,0 20 21 60,0 84 +25.4% 83 40,0 67 27 58 4 14 20,0 13 13 3 23 6 7 11 7 6 - 2014 2015 2016 2017 2018 2019 1Q19 1Q20 Retail - Own Stores Retail - Franchises Wholesale 14

Rent a Car (1/2) Record of daily rentals volume even with COVID-19 impacts. Number of Daily Rentals (Excluding Franchises, thousand) 14,199 +66.0% 8,554 Record 6,486 +41.8% 4,797 4,474 3,973 3,509 3,156 2014 2015 2016 2017 2018 2019 1Q19 1Q20 Occupancy Rate Average Daily Rate (R$) (Rented Fleet as % of Operating Fleet) Var. 1Q20 vs. 1Q19: (4.6)% (4,6)% Var. 1Q20 vs. 1Q19: (4.8) p.p. (0.8) p.p. 74.3 74.0 70.9 81.6% 70.6 70.5 70.3 79.4% 69.2 78.8% 78.0% 76.8% 75.5% 75.7% 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20 15

Rent a Car (2/2) Historic record of net revenue even with COVID-19 impacts. Stores expansion plan started but paralyzed due to COVID-19. Net Revenue From Rent a Car (Excluding Franchises, R$ million) 913.1 +57.8% 578.7 Record 424.4 +35.4% 324.5 289.5 289.8 273.0 214.1 2014 2015 2016 2017 2018 2019 1Q19 1Q20 Number of Stores +19 stores 227 229 216 210 210 208 196 78 162 76 83 89 128 112 102 +24 78 stores 151 132 127 121 104 99 94 84 2014 2015 2016 2017 2018 2019 1Q19 1Q20 Own Stores Franchises 16

Agenda COVID-19 Impacts New and Used Cars Sales Scenario Operating Results Financial Results Q&A 17