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

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1Q20 Results Presentation

Special Fleet Outsourced? Let’s go together!

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

Agenda

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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. $

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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 1,505 R$ 1,510 R$ 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 70.60 R$ 51.10 R$ 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

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

Agenda

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16,710 41,736 48,394 64,564 14,111 16,462 0.33% 1.74% 2.02% 2.86% 2.53% 3.17%

• 20,00%
• 15,00%
• 10,00%
• 5,00%

2017 2018 2018 Combined 2019 1Q19 1Q20 # of Cars Sold Unidas' Market Share (Up to 3 year old cars sales market)

5.1 2.4 2.3 0.6 0.5 4.5 5.8 5.7 1.3 1.2 1.9 2.8 3.1 0.7 0.7 2.7 3.3 3.5 0.8 0.8

14.2 14.3 14.6 3.3 3.1 2017 2018 2019 1Q19 1Q20 Up to 3 years From 4 to 8 years From 9 to 12 years More than 12 years 3.33 2.48 1.99 2.17 2.47 2.66 0.58 0.53 10.08 10.01 10.03 10.76 10.79 11.03 2.49 2.36 3.0x 4.0x 5.0x 5.0x 4.4x 4.1x 4.3x 4.4x

• 3,0x
• 2,0x
• 1,0x

2014 2015 2016 2017 2018 2019 1Q19 1Q20 # of New Cars Sales # of Used Cars Sales Used Cars Sales/New Cars Sales

New and Used Car Sales Scenario

New and Used Car Sales in Brazil¹ Used Cars by Age in Brazil¹ Unidas’ Sales (#) and Market Share (%)³

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. (Milhões de unidades) (Cars and light commercials – Million of units) +7.6%² +2.2%² (8.2)%² (5.5)%² +16.7% +33.4%

(5.9)%²

(5.4)%² +2.1%

(6.9)%²

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

Agenda

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74,704 85,027 78,963 84,334 52,271 75,230 59,523 80,815 4,124 4,331 3,809 4,000 30,424 31,184 27,732 46,566 131,099 164,588 142,295 169,149 2014 2015 2016 2017 2018 2019 1Q19 1Q20 Fleet Management Rent a Car Rent a Car Franchises

Fleet

Fleet Composition (# of vehicles)

+18.9%

Fleet in Demobilization (% and # of vehicles - thousand)

3.7 2.8 1.5 2.0 10.0 14.0 13.7 16.8 12.3% 9.0% 5.5% 4.2% 7.7% 8.6% 9.6% 10.0%

• 100%
• 80%
• 60%
• 40%
• 20%

• 5,00

2014 2015 2016 2017 2018 2019 1Q19 1Q20 Used Cars Sales Inventory % of Inventory/Total Fleet +40.0% +0.4 p.p. +23.1%

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14,177 13,068 9,122 19,747 68,702 72,849 97,948 25,867 21,570 11,565 12,729 12,402 16,710 42,386 48,394 64,564 14,111 16,462

2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20 Cars Purchased Cars Sold 2,612 339 (3,280) 3,037 24,455 26,316 5,108 11,756

4,455

33,384 NTC Serviços Ltda. Acquisition

4,455

Investment in Fleet

Net Fleet Investment (R$ million) Net Fleet Investment (# of vehicles)

517.9 509.9 329.0 859.4 2,944.8 3,151.9 4,562.2 1,041.3 1,069.9 255.4 316.3 352.3 525.2 1,408.8 1,621.2 2,518.5 523.4 615.2

2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20 Cars Acquisition Car Sales Revenues 262.5 (23.3) 334.2 193.6

454.7

1,536.0 1,530.7

517.9

2,043.7

NTC Serviços Ltda. Acquisition

90.0 90.0

(12.2)% +33.5% (56.5)% +36.5%

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Fleet Management (1/3)

567

Special Vehicles Addressable Market in Brazil (vehicles, thousand)

Growth guarantee for 2020; High potential for synergies Specialized segment;

Mercado endereçável

• s

es es es es Zetta Frotas

2.6

Presence 8 states Revenue R$102.8 million EBITDA R$40.1 million Net Income R$7.7 million Net Debt R$103.7 million

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373.8 392.0 402.4 522.9 930.6 1,017.1 1,214.5 281.3 292.4 2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20 8,232 8,057 8,335 11,179 20,647 22,624 25,374 6,069 6,421 1,502 1,609 1,597 1,546 1,489 1,483 1,597 1,538 1,505

• 2.000
• 1.500
• 1.000
• 500

• 3.000

2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20 # of Daily Rentals (thousand) Average Monthly Rate (R$)

Fleet Management (2/3)

Number of Daily Rentals (thousand) and Average Monthly Rate (R$) Net Revenue from Fleet Management (R$ Million)

(2.1)% +7.7% +5.8% +12.2% CAGR (2014-2019) +26.6% +19.4% +3.9% CAGR (2014-2019) +25.2%

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94.8% 96.2% 96.8% 97.0% 98.2% 98.4% 97.7% 98.0% 97.8% 2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20 8,140 7,950 4,629 7,032 12,759 17,098 2,880 5,954 335.0 314.0 195.1 309.6 575.0 709.0 140.2 306.0

• 1.000
• 800
• 600
• 400
• 200

2014 2015 2016 2017 2018 2019 1Q19 1Q20 # of Vehicles Global Value (R$ million) 22.4 29.3 34.5 38.7 39.5 45.2 45.4 45.2 45.7 45.1 1T18 2T18 3T18 4T18 1T19 2T19 3T19 4T19 1T20 2T20

Fleet Management (3/3)

Commercial Pipeline New Contracts: Future Revenue Generation for the Fleet Management Segment Occupancy Rate

(Rented Fleet as % of Operating Fleet)

• Var. (2014-2019) +2.9 p.p.

# Vehicles in Dispute (thousand)

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.

(0.3)%

+34.0% 106.7% +23.3% +118.2%

(0.2) p.p. (0.7) p.p.

Revenue for the next quarters

292.4 1T20 Receita Líquida

2019 Results Revenue: R$103 million Fleet: 2.6 thousand vehicles New Contracts: 2020TD Global Value: R$358 million Fleet: 1.9 thousand vehicles

2Q20 1Q20 3Q19 3Q18 2Q18 4Q19 2Q19 1Q19 4Q18 1Q18 1Q20 Net Revenue

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11,565 12,729 12,402 16,710 41,736 48,394 64,564 14,111 16,462 22.1 24.8 28.4 31.4 33.5 33.5 39.0 37.1 37.4 2014 2015 2016 2017 2018 2018 Combinado 2019 1T19 1T20 255.4 316.3 352.3 525.4 1,411.3 1,621.2 2,518.5 524.1 615.2

2014 2015 2016 2017 2018 2018 Combinado 2019 1T19 1T20

Used Cars (1/2)

+17.4%

Revenue from Used Cars Sales (R$ Million)

+55.3% +33.4% +16.7%

Number of Cars Sold and Average Selling Price (R$ Thousand/Car)

+16.4% +0.7% 2018 Combined 1Q19 1Q20 2018 Combined 1Q19 1Q20

14 6 7 11 23 58 83 67 84 21 18 20 18 7 6 3 4 6 4 6 13 13 13 14 27 85 112 93 115

• 20,0

2014 2015 2016 2017 2018 2019 1Q19 1Q20 Retail - Own Stores Retail - Franchises Wholesale

Used Cars (2/2)

Number of Stores

+ 99 stores 2014 vs. 2019 + 27 stores +22 stores

+25.4% (10.0)% +116.7% YoY %

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74.3 70.9 74.0 70.3 69.2 70.5 70.6 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20

78.8% 78.0% 81.6% 75.5% 75.7% 79.4% 76.8% 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20

3,509 3,973 4,797 6,486 8,554 14,199 3,156 4,474 2014 2015 2016 2017 2018 2019 1Q19 1Q20

Record of daily rentals volume even with COVID-19 impacts.

Rent a Car (1/2)

Number of Daily Rentals (Excluding Franchises, thousand)

+66.0% +41.8%

Record

Average Daily Rate (R$)

• Var. 1Q20 vs. 1Q19: (4.6)%

(4,6)%

Occupancy Rate

(Rented Fleet as % of Operating Fleet)

• Var. 1Q20 vs. 1Q19: (4.8) p.p.

(0.8) p.p.

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273.0 289.5 324.5 424.4 578.7 913.1 214.1 289.8 2014 2015 2016 2017 2018 2019 1Q19 1Q20

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)

+35.4% +57.8% Record

Number of Stores

+19 stores +24 stores 84 94 99 104 121 132 127 151 78 102 128 112 89 76 83 78 162 196 227 216 210 208 210 229 2014 2015 2016 2017 2018 2019 1Q19 1Q20 Own Stores Franchises

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

Agenda

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• 25.8
• 17.8
• 11.8

11.9 42.1 67.8 32.5 7.7

• 3.8

222.6 240.5 260.6 331.0 603.5 664.7 787.5 181.7 188.7 187.7 284.7 445.5 100.7 128.5 196.8 222.7 248.8 345.0 833.3 1,017.2 1,265.5 290.1 313.4 52.6% 56.8% 61.8% 66.0% 59.4% 62.4% 58.6% 57.5% 52.5%

• 100%
• 80%
• 60%
• 40%
• 20%

• 100,00

2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20 Used Cars Fleet Management Rent-a-Car + Franchises Recurring Rental Margin

Recurring EBITDA

Recurring EBITDA and EBITDA Margin¹ (R$ Million and %)

+24.4% +8.0% (150.2)% +3.7% +27.6% %YoY 1Q19 Recurring EBITDA 2014 2015 2016 2017 2018 2018 Combined 2019 Var. 1Q19 1Q20 Var. Fleet Management¹ 59.6% 61.4% 64.8% 63.7% 64.8% 65.4% 64.8% (0.5) p.p. 64.6% 64.5% (0.1) p.p. Rent-a-Car + Franchises¹

• 39.8%

46.3% 47.2% 0.8 p.p. 45.2% 42.2% (3.0) p.p. Rental¹ 59.6% 61.4% 64.8% 63.7% 56.4% 58.2% 57.1% (1.1) p.p. 56.0% 53.1% (2.9) p.p. Used Cars Sales² (10.1)% (5.6)% (3.3)% 2.3% 3.0% 4.2% 1.3% (2.9) p.p. 1.5% (0.6)% (2.1) p.p. = Consolidated EBITDA¹ 52.6% 56.8% 61.8% 66.0% 59.4% 62.4% 58.6% (3.7) p.p. 57.5% 52.5% (5.1) p.p.

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Recurring EBIT

Recurring EBIT and EBIT Margin¹ (R$ Million and %)

112.7 124.3 150.3 216.8 553.0 644.4 797.2 186.4 170.9

30.1% 31.7% 37.4% 41.5% 39.4% 39.5% 36.9% 37.0% 28.6%

• 100%
• 80%
• 60%
• 40%
• 20%

• 200,00

2014 2015 2016 2017 2018 2018 Combined 2019 1Q19 1Q20 Consolidated Recurring EBIT Recurring Rental Margin (8.4)% +23.7% EBIT Recorrente 2014 2015 2016 2017 2018 2018 Combinado 2019 Var. 1T19 1T20 Var. Terceirização de Frotas¹ 30.1% 31.7% 37.4% 41.5% 43.9% 44.4% 41.8% (2.7) p.p. 41.0% 38.5% (2.5) p.p. Aluguel de Carros + Franquias¹

• 30.7%

31.3% 30.7% (0.6) p.p. 31.9% 19.1% (12.8) p.p. = Margem EBIT Consolidada¹ 30.1% 31.7% 37.4% 41.5% 39.4% 39.5% 36.9% (2.5) p.p. 37.0% 28.6% (8.4) p.p.

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67,7 203,4 233,6 348,8 82,5 79,6 12.9% 14.5% 14.3% 16.2% 16.4% 13.3%

• 60%
• 50%
• 40%
• 30%
• 20%
• 10%

2017 2018 2018 Combined 2019 1Q19 1Q20

Recurring Net Income Recurring Net Margin

Net Income and Non-Recurring Effects¹

Recurring Financial Result Recurring Net Income

R$ Million As % of Rental Revenue R$ Million As % of Rental Revenue +49.3% (3.5)% +200.4% 125.1 290.7 335.2 350.2 84.3 70.2 23.9% 20.7% 20.5% 16.2% 16.7% 11.8%

• 40%
• 30%
• 20%
• 10%

2017 2018 2018 Combined 2019 1Q19 1Q20

+132.4% +4.5 % (16.8)%

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Financial Results

Spread

The annualized ROIC is calculate using Recurring EBIT less recurring effective tax rate (NOPAT), divided by PP&E and the stock of cars for renewing the fleet, less Receivables from customers in current and non-current assets and trade accounts payable (Invested Capital).

Expansion of the ROIC / Debt Cost ratio even with COVID-19 impacts: Strong debt cost reduction in the last two years.

10.7% 10.3% 12.3% 12.7% 12.0% 11.3% 12.1% 8.4% 8.6% 9.9% 10.8% 8.8% 5.9% 5.0% 5.4% 3.3%

2014 2015 2016 2017 Combined 2018 Combined 2019 1Q19 1Q20 ROIC Cost of Debt Net of Taxes 2.1 p.p. 0.4 p.p. 1.5 p.p. 3.8 p.p. Spread 6.2 p.p. 6.3 p.p. 5.1 p.p. 1.2x 1.0x 1.1x 1.4x 2.0x 2.3x 2.3x 2.5x ROIC / Cost of Debt 6.7 p.p.

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37,9% 49,1% 51,8%

2019 1Q19 1Q20

2.02x 2.08x 2.36x 3.02x

2018 2019 1Q19 1Q20

84.4%

2.4% 2.6% 10.6% Debentures Promissory Notes Leasing Agrobusiness Certificate Foreign Loan 1.2 0.9 0.3 0.3 1.5 0.0 0.7 1.2 1.2 1.1 0.5 0.2 0.1 0.1 0.1 Caixa 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Capital Structure

Covenants Amortization Schedule of Debt Principal on 03/31/2020 Proforma (R$ billion) Cash balance of R$1.5 billion. Amount equivalent to 74.4% of debt until 2022.. Net Debt/ Recurring EBITDA Annualized Debt Composition (Principal) Principal Amount: R$4.9 bi Net Debt/ Fleet Value

0.6x 0.66x +2.7 p.p. * * Amounts with no relevant percentuals

Cash equivalente to 74.4% of debt until 2022

Q&A

Legal Notice – The statements contained in this document relating to business prospects, operating and financial results projections and those relating to Unidas growth prospects are merely projections and as such are based exclusively on the Board's expectations of the future of the business. These expectations depend substantially on market conditions, the performance of the Brazilian economy, the sector and the international markets and, therefore, subject to change without prior notice.

ri.unidas.com.br Contact: ri@unidas.com.br