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Investor Relations

Marco Tulio de Carvalho Oliveira

CFO and IRO

Rodrigo Faria

Investor Relations Manager

Francesco Lisa

Investor Relations Specialist

Rodrigo Finotto Perez

Investor Relations Analyst

Contact:

ri.unidas.com.br

[email protected]

+55 11 3155-5826 / 4987 / 5892

Novo Mercado

Ticker: LCAM3

Total of shares: 508,729,411

Free-float: 313,837,526 (61.7%)

4Q19 Results Conference Call

Friday, March 13, 2020

11 a.m. (Brasília time)

10 a.m. (New York time)

Brazil: +55 11 4210-1803 / +55 11 3181-8565

United States (Toll Free): +1 844 204-8942

Other countries: +1 412 717-9627

Access code: Unidas

Webcast: ri.unidas.com.br/en

Estimated reading time:

20 minutes

4Q19 Earnings Release

mailto:[email protected]

1

4Q19 Results

4,673.7

1,265.5348.3

2019 Net Revenue 2019 EBITDA 2019 Net Income

69.096.0

15.1% 16.5%

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

180,0

200,0

4Q18 4Q19

432.0651.4

264.7

310.8192.5

270.7889.3

1,233.0

0,0

200,0

400,0

600,0

800,0

1000,0

1200,0

1400,0

4Q18 4Q19

Used Cars Sales Fleet Management Rent a Car + Franchises

5,7536,424

1,523 1,613

-1.000

-500

0

500

1.000

1.500

3.000

4.000

5.000

6.000

7.000

8.000

9.000

4Q18 4Q19

Number of Daily Rentals (thousand)Average Monthly Rate (R$)

2,642

4,137

76.7 70.5

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

4Q18 4Q19

Number of Daily Rentals (thousand)Average Daily Rate (R$)

16,679

64,564

39.1 39.0

4Q19 2019

# Cars Sold Average Selling Price (R$ thousand)

74,704 85,027

52,27175,230

4,124

4,331131,099

164,588

4Q18 4Q19

Fleet Management Rent a Car Franchises

FINANCIAL HIGHLIGHTS

Net Revenues per Segment (R$ Million)

2019 Results (R$ Millions)

OPERATING HIGHLIGHTS

Number of Daily Rentals (Thousand) and Average Monthly Rate (R$)

Fleet Management

Number of Daily Rentals (Thousand) and Average Daily Rate (R$)

Rent a Car (excluding Franchises)

+56.6%

Cars Sold, Average Selling Price (R$ Thousand) and YoY variation (%)

+25.5%

Fleet at the End of the Period²

Record

Record

-8.2% +5.9%

+11.7%

Record

+39.2%

Recurring Net Income (R$ Million) and Recurring Net Margin¹

+38.6%

+40.6%

+17.4%

+50.8%

(1) Net Margin calculated over Net Rental Revenue; (2) Considers franchisee’s fleet.

Record

Record

Record

Record

ROIC vs. Debt Cost after taxes, Spread

Record

+1.4p.p. Record

10.7% 10.3%

12.3%12.7%

12.0%11.3%

8.6%

9.9% 10.8%8.8%

5.9%5.0%

2014 2015 2016 2017Combined

2018Combined

2019

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.

+9.5%

+37.5%

+33.4%

+16.4%

Record

2

Welcome to the results for the fourth quarter and twelve months of 2019.

The year of 2019 was a very special one for all of us at Unidas. For another year, we delivered all the financial indicators above or in line with what was expected by the Company and with positively surprising operating volumes. In just 12 months, the Company (i) consolidated its position as leader in Fleet Management, (ii) entered into a strategic commercial partnership with Alphabet (BMW Group) to cross-offer mobility services that include fleet rental and solutions for TCO for its customers worldwide, (iii) diversified its business with the creation of Unidas Agro, (iv) successfully unified its systems, (v) became more digitalized with the launch of the RAC and Uber applications, (vi) increased the presence of the Used Car Sales division throughout the country with the net addition of 27 stores, (vii) simplified its corporate structure with the reorganization of its subsidiaries, (viii) issued for the 1st time a CRA (Certificate of Receivables from Agribusiness) in the amount of R$125 million and (ix) successfully carried out a Primary and Secondary Public Offering of R$1.8 billion, among several other deliveries. As relevant as achieving all these achievements in that period, Unidas also became an even more sustainable company through the neutralization of 100% of the carbon emissions of its operations, the encouragement of diversity and inclusion in its staff and the implementation of several volunteer programs that have transformed the reality of dozens of care institutions for children and the elderly around Brazil for the better. On the results side, Unidas closes the year 2019 by breaking new operating and financial records.

In Fleet Management, a new operating volume record, surpassing the 25 million daily rentals mark in a year for the first time, and with tariff expansion in the same period due to the improvement in the customer mix, the entry into the Agro segment and the expansion of Unidas Livre. In Car Rental, we surpassed the level of 14 million daily rentals in one year - of which more than 4 million were in the fourth quarter alone -, a 66.0% growth compared to 2018, supported by higher volumes in all types channels, allowing the net addition of 23.0 thousand vehicles to the RAC fleet in 2019 to have virtually no effect on the occupancy rate. In Used Car Sales, 64.7 thousand vehicles were sold with an average sale price 16.4% higher than in 2018, strictly in line with the Company's plan, and presenting, at the end of 2019, the lowest percentage of vehicles in stock of all year. In addition, of all stores opened with the national expansion program, none were closed, proving the assertiveness of our strategy for the growth of retail channel in our Used Cars Sales operation. In financial terms, Revenue, EBITDA, EBIT and Net Income presented records in 2019, with the annual growth of 49.3% of net income being greater than the expansions of 43.8% in revenue, of 24.4% in EBITDA and of 23.7% in EBIT, proving that all the movements made by the Company have generated value for its shareholders.

In addition to these achievements, 2019 also brought recognition to Unidas for its excellent work on several fronts, with the Company being awarded, certified and recognized in the following ways:

We were featured in the Humanized Companies Brazil 2019 award, in a select group of 22 companies, among 1,115 Companies evaluated;

We climbed 5 positions and reached 11th place in the GPTW Latin America Ranking, in the Large Companies category;

Best car rental company in Brazil in the MESC ranking;

We were winners of the 100+ Innovative in the Use of IT award, in the Miscellaneous Services category;

Once again, we achieved the RA1000 Certificate, due to our excellent service rates, on the website Reclame Aqui; I would like to thank our 3,314 employees for another delivery of results in line with the objectives set by the Company and our customers for their confidence in the quality of our services and products. To our shareholders, we reaffirm our commitment to generating value in line with the growth of profitable results, in addition to total transparency and the highest level of relationship with investors and the market in general.

Thank you very much and “let's go together!”

Luis Fernando Porto CEO

MANAGEMENT’S COMMENTS

3

In 4Q19, the new vehicle sales market (considering only cars and light commercial vehicles) increased by 4.8% when compared to the same period of the previous year, reaching 0.72 million units sold. The used vehicle sales market expanded by 3.7%, reaching 2.94 million units sold in 4Q19. In 2019, 2.66 million brand new vehicles and 11.03 million used vehicles were sold, with annual

growth of 7.6% and 2.2%, respectively.

For the second consecutive quarter, there was an annual growth in the sale of used vehicles up to 3 years, which in 4Q19 increased by 0.4%. Within this scenario, Unidas continued to increase the volume of its sales, which in 4Q19 grew 37.5% in 12 months, resulting in the volume of 16,679 vehicles sold.

3.332.48 1.99 2.17 2.47 2.66

0.69 0.72

10.08 10.01 10.0310.76 10.79 11.03

2.83 2.94

3.0x

4.0x

5.0x 5.0x4.4x 4.1x 4.1x 4.1x

-3,0x

-2,0x

-1,0x

0,0x

1,0x

2,0x

3,0x

4,0x

5,0x

6,0x

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

18,00

20,00

2014 2015 2016 2017 2018 2019 4Q18 4Q19

# of New Cars Sales # of Used Cars Sales Used Cars Sales/New Cars Sales

3.0 4.1 5.0 5.12.4 2.3 0.6 0.6

5.34.8

4.4 4.5

5.8 5.7

1.5 1.5

1.8 1.6 1.5 1.92.8 3.1

0.8 0.9

3.3 2.9 2.52.7 3.3 3.5

0.9 1.0

13.4 13.4 13.414.2 14.3 14.6

3.7 3.9

2014 2015 2016 2017 2018 2019 4Q18 4Q19

Up to 3 years From 4 to 8 years From 9 to 12 years More than 12 years

11,565 12,729 12,402 16,710

41,73648,394

64,564

12,129 16,679

0.39% 0.31% 0.25% 0.33%1.74% 2.02% 2.86% 2.20% 2.99%

-20,00%

-15,00%

-10,00%

-5,00%

0,00%

5,00%

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

2014 2015 2016 2017 2018 2018Combined

2019 4Q18 4Q19

# of Cars Sold Unidas' Market Share (Up to 3 year old cars sales market)

Sales of New and Used Cars in Brazil (Cars and light commercial vehicles – millions of units)

Used Cars Sales by Age in Brazil (millions of units)

Number of Cars Sold and Market Share (Market up to 3 years) ¹

I – INDUSTRY SCENARIO

Sources: FENAUTO and Company’s results.

Sources: FENABRAVE and FENAUTO.

+37.5%

(1) For changes calculation, are being considered numbers without rounding, according to FENABRAVE and FENAUTO reports of each period.

Source: FENAUTO. Considers sales of Vehicles, Light and Heavy Commercials, Motorcycles and Others.

+4.8%¹

+3.7%¹

-5.9%¹

+7.6%¹

+2.2%¹

+0.4%¹

+33.4%

4

Performance in the Period

The Fleet Management net revenue was R$310.8 million in 4Q19 and R$1.2 billion in 2019, representing annual increases of 17.4% and 30.5%, respectively. In comparison with the combined amount of 2018, the annual growth in fleet outsourcing revenue was 19.4%.

Operating volume totaled a record 6.4 million daily rentals, with an annual growth of 11.7% compared to 4Q18. In 2019, we reached another record with a total of 25.4 million daily rentals, showing growths of 22.9% in relation to 2018 and 12.2% in relation to the combined of 2018. The growth is explained by (i) the low penetration of this segment in the country, which contributes to attracting customers who outsource their fleets for the first time, (ii) the Company's expertise combined with its ability to purchase any and all types of vehicles, allowing clients of all sizes and any type of industry, including agribusiness, to be part of its addressable market, and (iii) the high level of contract renewal supported by the high satisfaction level of our clients.

In turn, the average monthly rate was R$1,613 in 4Q19, with an annual expansion of 5.9%. In the twelve months of 2019, this expansion was even greater, 7.7% in relation to the combined ammount in 2018 and 7.3% in relation to 2018, totaling the monthly tariff of R$1,597.

373.8 392.0 402.4

522.9

930.61,017.1

1,214.5

264.7310.8

2014 2015 2016 2017 2018 2018Combined

2019 4Q18 4Q19

8,232 8,057 8,33511,179

20,64722,624

25,374

5,753 6,424

1,502 1,609 1,597 1,546 1,489 1,483 1,597 1,523 1,613

-2.000

-1.500

-1.000

-500

0

500

1.000

1.500

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

2014 2015 2016 2017 2018 2018 Combined

2019 4Q18 4Q19

# of Daily Rentals (thousand) Average Montlhy Rate (R$)

II – FLEET MANAGEMENT

Net Revenue from Fleet Management (R$ Million)

+19.4%

+17.4%

Record

Number of Daily Rentals (Thousand) and Average Monthly Rate (R$)

Record

+11.7%

+5.9%

+12.2%

Record

+7.7%

5

Unidas' average occupancy rate ended 4Q19 at 97.1%, 1.2 p.p. lower than 4Q18. In 2019, the occupation was 97.7%, lower by 0.7 p.p. in comparison with the 2018 combined rate and 0.5 p.p. in relation to 2018.

Commercial Activity The global value of the new lease agreements signed in 4Q19 reached the amount of R$238.0 million, an annual expansion of 146.9%. In 2019, there was an annual growth of 23.3%, reaching an amount of R$709.0 million. Such performances are explained by the winning of new contracts with a longer average duration and with a greater number of vehicles in both periods.

94.8%

96.2%96.8% 97.0%

98.2% 98.4%97.7%

98.3%

97.1%

2014 2015 2016 2017 2018 2018 Combined

2019 4Q18 4Q19

8,140 7,950

4,6297,032

12,759

17,098

2,531

5,600

335.0 314.0195.1

309.6

575.0709.0

96.4238.0

-1000,0

-800,0

-600,0

-400,0

-200,0

0,0

200,0

400,0

600,0

800,0

0

5.000

10.000

15.000

20.000

25.000

2014 2015 2016 2017 2018 2019 4Q18 4Q19

# of Vehicles Global Value (R$ Million)

New Contracts¹

Average Occupancy Rate

+121.3%

-1.2p.p.

+34.0%

(1) For new contracts, contract renewals are not being considered.

II – FLEET MANAGEMENT

-0.7 p.p.

+146.9%

+23.3%

6

Performance in the Period

The volume of Rent a Car dayly rentals (excluding franchises) continued to perform strongly and reached the record levels of 14.2 million daily rentals in 2019 (+66.0% YoY) and of 4.1 million daily rentals only in 4Q19 (+56.6% YoY). The results reflect the strong rental demand of all kind of RAC customers, the great potential for commercial synergy between RAC products and services and our leadership position in Fleet Management industry, the still low penetration in the country of this service and the great competitive advantages of Unidas in relation to small players. These favorable market characteristics were enhanced by the continuous investments in the Unidas brand, in the quantity, quality and diversity of our fleet, and in technologies that improve our customers’ experience and the Company's ability to manage a robust yield management.

In turn, the Average Daily Rate in 4Q19 was R$70.5, a decrease of 8.1% compared to 4Q18. In the 12 months of 2019, the Average Rate was R$70.9, 4.6% lower than in 2018. Such performances reflect the mix of daily rentals with greater exposure to long-term and replacement contracts, and the transfering of the Selic rate drop to end consumers. The RAC Occupancy Rate increased by 2.8 p.p. and totaled 79.4% in 4Q19, the second highest in the year, despite the considerable investments made by the Company with the net addition of 22,959 vehicles in the last 12 months destined for this segment, proving the strong demand of the car rental market in the country.

3,509 3,9734,797

6,486

8,554

14,199

2,642

4,137

2014 2015 2016 2017 2018 2019 4Q18 4Q19

74.3

70.9

76.7

74.0

70.369.2

70.5

2018 2019 4Q18 1Q19 2Q19 3Q19 4Q19

Average Daily Rate (R$)

78.8% 78.0%76.6%

81.6%

75.5% 75.7%

79.4%

2018 2019 4Q18 1Q19 2Q19 3Q19 4Q19

Occupancy Rate

III – RENT A CAR

+66.0%

+56.6%

Number of Daily Rentals (Excluding Franchises, Thousand)

Var. 4Q19 vs. 4Q18 -8.1%

Var. 4Q19 vs. 4Q18 +2.8 p.p.

Record

Record

-4.6% -0.8 p.p.

7

As a result of the aforementioned operational achievements, Net Revenue from the RAC segment (without franchises) in 4Q19 was R$263.2 million, an increase of 42.7% in 12 months. In 2019, net revenue totaled R$913.1 million, 57.8% higher than the 2018 revenue. Both amounts represent the new records of the Company for a quarter and a year, respectively.

Customer Service Network Our RAC customer service network totaled 208 stores at the end of December 2019, of which 132 are own stores and 76 franchises, present in all 26 Brazilian states and the Federal District. The growth of 11 own stores in 12 months mainly reflects the incorporation of franchisees and the plan to expand the offer of services for this segment throughout the national territory with the opening of new stores. The reduction of 13 Franchise stores for the same comparative period is due to the passive absorption of franchise operations and the Company's diligent work in maintaining only stores that justify their maintenance through positive results.

273.0 289.5324.5

424.4

578.7

913.1

184.5

263.2

2014 2015 2016 2017 2018 2019 4Q18 4Q19

84 94 99 104 121 132

78

102

128 112 89 76 162

196

227216 210 208

2014 2015 2016 2017 2018 2019

Own Stores Franchises

Net Revenue from Rent a Car

(Excluding Franchises, R$ Million)

+57.8%

+42.7%

III – RENT A CAR

Number of Stores – Rent a Car

Record

-2 stores

+11 stores

Record

8

Perfomance in the Period

Used Cars Sales Gross Revenue totaled R$652.2 million in 4Q19, representing an annual increase of 50.6%. In 2019, the revenue was R$2.5 billion, 78.5% higher than in 2018 and 55.3% higher when compared to the combined revenue of 2018. The performances are explained by the increase in the volume of cars sold, as well as the average selling price.

Used cars sales gross profit amounted to R$43.6 million in 4Q19 and stable compared to 4Q18, while the Gross Margin reached the level of 6.7% (-3.5 p.p. YoY) in the respective period. This is the new level of the Company's gross margin for this segment.

In terms of volume, 16,679 vehicles were sold in 4Q19 (+37.5% YoY), while in 2019 the sales totaled 64,564 vehicles, up 54.7% over 2018 and 33.4% when compared to 2018 combined volume. The average selling price in 4Q19 was 9.5% higher than in 4Q18, totaling R$39.1 thousand. In 2019, the average price was R$39.0 thousand (+17.5% vs. 2018 and +16.4% vs. 2018 combined). The results mainly reflect (i) the greater exposure of the Used Car Sales inventory to RAC vehicles, (ii) the reduction in the average age of vehicles sold from RAC, (iii) the change in the vehicle purchase mix and (iv) the purchase of vehicles with higher added value throughout 2018.

255.4 316.3 352.3525.4

1,411.31,621.2

2,518.5

433.0652.2

0,0

500,0

1000,0

1500,0

2000,0

2500,0

3000,0

3500,0

2014 2015 2016 2017 2018 2018Combined

2019 4Q18 4Q19

Used Cars Sales Results

(R$ million)

4Q19

with

IFRS 16

4Q18

with

IFRS 16

Var.

4Q19 vs.

4Q18

2019

with

IFRS 16

2018

Combined

with IFRS 16

Var.

2019 vs

2018

(+) Used Cars Sales Net Revenue 651.4 432.0 50.8% 2,515.5 1618.6 55.4%

(-) Cost of Cars Sold (607.8) (388.5) 56.5% (2,335.7) (1,452.7) 60.8%

= Used Cars Sales Results 43.6 43.6 0.1% 179.7 165.9 8.3%

% Used Cars Sales Gross Margin 6.7% 10.1% (3.5) p.p. 7.1% 10.3% (3.1) p.p.

11,565 12,729 12,40216,710

41,73648,394

64,564

12,12916,679

22.124.8

28.431.4 33.5 33.5

39.0 35.7 39.1

-40

-30

-20

-10

00

10

20

30

40

-

20000,0

40000,0

60000,0

80000,0

100000,0

2014 2015 2016 2017 2018 2018Combined

2019 4Q18 4Q19

# of Cars Sold Average Price of Cars Sold

IV – USED CARS SALES

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

+33.4%

+37.5%

Revenue from Used Cars Sales (R$ Million)

+9.5%

Record

+16.4%

Record

+55.3%

Record

+50.6%

Record

9

The Demobilization Fleet totaled 14.0 thousand vehicles in 4Q19, an increase of 40.0% over the previous year, mainly explained by the strong increase in the total number of vehicles in 12 months. This stock amount was equivalent to 8.6% of the total fleet, which is the lowest level in the last three quarters and absolutely in line with the Company's objective of having a stock in the range of 7.5% to 8.5% . This result reflects the Company's greater efficiency in demobilizing its vehicles, including through the maturation of part of the stores opened in the last 12 months. The increase of 0.9 p.p. of the representativeness of the stock in 12 months is a natural result of the national expansion plan of the Used Cars Sales stores.

Customer Service Network

At the end of December 2019, the Used Cars Sales network was comprised of 112 stores distributed throughout Brazil, as a result of the opening of 7 own stores in 4Q19. In the last 12 months, the total of Used Cars Sales stores increased by 31.8%, while the number of retail stores increased by 27.8% and wholesale stores by 83.3%.

3.7 2.81.5 2.0

10.0

14.0

12.3% 9.0% 5.5% 4.2% 7.7% 8.6%

-100%

-80%

-60%

-40%

-20%

00%

-

5,00

10,00

15,00

20,00

25,00

2014 2015 2016 2017 2018 2019

Used Cars Sales Inventory % of Inventory/Total Fleet

6 7 1123

58

83

21

18

7 6 3

4

6

11

13 13 14

27

85

112

-

20,0

40,0

60,0

80,0

100 ,0

120 ,0

2014 2015 2016 2017 2018 2019

Retail - Own Stores Retail - Franchises Wholesale

Number of Stores – Used Cars Sales

+72 stores 2018 vs 2014

Fleet in Demobilization – Consolidated (Vehicles – thousand)

+27 stores

+0.9 p.p.

+40.0%

IV – USED CARS SALES

+43.1%

-14.3%

+83.3%

10

At the end of December 2019, the Company's consolidated fleet totaled 164,588 vehicles, representing a 25.5% growth compared to the 2018 fleet. In total, the Company ended 2019 with 85,027 vehicles in Fleet Management, 75,230 vehicles destined for the RAC and other 4,331 Franchise vehicles (considering the franchisee's own fleet of 1,746 vehicles).

74,70485,027

52,271

75,2304,124

4,331

30,424 31,184 27,731

46,566

131,099

164,588

2014 2015 2016 2017 2018 2019

Fleet Management Rent a Car Rent a Car - Franchises

Opening of the Final Fleet – Consolidated

V – FLEET

+25.5%

11

Investments in Fleet Net investment in fleet in 2019 totaled a record amount of R$2.0 billion, an increase of 33.5% compared to 2018 combined and of 33.1% compared to 2018. In 4Q19, the annual increase was 28,9%, reaching a total of R$746.7 million. In number of vehicles, the Company presented a record net addition of 33,384 units in 2019 (+36.5% YoY vs 2018 Combined and +26.9% YoY vs 2018). In 4Q19, the net addition of 10,899 vehicles represented an annual expansion of 1.2%.

517.9 509,9 329.0

859.4

2,944.8 3,151.9

4,562.2

1,012.3

1,398.8

255.4 316.3 352.3 525.2

1,408.8 1,621.2

2,518.5

433.0 652.2

2014 2015 2016 2017 2018 2018Combined

2019 4Q18 4Q19

Cars Acquisition Car Sales Revenues

262.5 (23.3)

334.2

193.6

746.7

1,536.0

1,530.7

579.3

2,043.7

NTC Serviços Ltda. Acquisition

90.0

14,177 13,068 9,122

19,747

68,702 72,849

97,948

22,894 27,578

11,565 12,729 12,402 16,710

42,386 48,394

64,564

12,129 16,679

2014 2015 2016 2017 2018 2018Combined

2019 4Q18 4Q19

Cars Purchased Cars Sold

2,612 339 (3,280)3,037

24,45526,316

10,89910,765

4,455

33,384

NTC Serviços Ltda. Acquisition

Net Fleet Investment (R$ Million)

Net Fleet Investment (# of Vehicles)

V – FLEET

+33.5%

+36.5%

+1.2%

+28.9%

12

To facilitate the vision of the new Unidas, we show in the following tables the combined figures (sum of revenues,

costs and expenses) of Locamerica and Unidas S.A. for 2018, excluding eliminations. When applicable, 2018 financial information with the impact of IFRS 16 will be available for comparability purposes, as these are the current accounting practices.

Consolidated Net Revenue

The Company's consolidated net revenue in 4Q19 was R$1.2 billion, 38.6% higher than in 4Q18. In 2019, net revenue expanded by 43.8% when compared to combined 2018 revenue, totaling R$4.7 billion. These results reflect the strong growth of all the Company's business divisions.

Revenue¹

(R$ million)

4Q19

with IFRS16

4Q18

with IFRS16

Var.

4Q19 vs 4Q18

2019

with IFRS16

2018

Combined

with IFRS16

Var.

2019 vs 2018

(+) Gross Rental Revenue 644.6 503.5 28.0% 2,385.6 1,794.8 32.9%

(+) Gross Used Cars Sales 652.2 433.0 50.6% 2,518.5 1,621.3 55.3%

(-) Taxes (63.8) (47.2) 35.1% (230.3) (166.0) 38.7%

= Total Net Revenue 1,233.0 889.3 38.6% 4,673.7 3,250.0 43.8%

Net Rental Revenue 581.5 457.2 27.2% 2,158.3 1,631.4 32.3%

Used Cars Sales Net Revenue 651.4 432.0 50.8% 2,515.5 1,618.6 55.4%

255.4 316.3 352.3 525.2

1,408.81,618.6

2,515.5

432.0651.4

373.8 392.0 402.4522.9

930.6

1,017.1

1,214.5

264.7310.8

471.3

614.3

943.8

192.5

270.7629.2 708.3 754.7

1,048.1

2,810.7

3,250.0

4,673.7

889.3

1,233.0

2014 2015 2016 2017 2018 2018Combined

2019 4Q18 4Q19

Used Cars Sales Fleet Management Rent a Car + Franchises

Consolidated Net Revenue per Segment (R$ Million)

VI – FINANCIAL RESULTS

+38.6%

+50.8%

YoY%

Record

+43.8%

+17.4%

+40.6%

13

Operating Costs

In 4Q19, the Company showed greater efficiency in its operating costs, especially in the costs of maintenance and depreciation of vehicles. This performance, coupled with the strong growth of the rental business, allowed the greater exposure to the RAC segment, the greater investments in people and the absorption of franchise operations in the last 12 months to be more than offset, resulting in the annual drops of 0.7 p.p. and 1.4 p.p. of representativeness of cash costs and total costs in relation to net rental revenue, respectively. In the accumulated amount for the 12 months of 2019, the maintenance of the representativeness of cash costs and the reduction of 1.5 p.p. of the representativeness of total costs are explained by the same reasons. The annual depreciation per Fleet Management operating vehicle totaled R$3.7 thousand per car per year in 4Q19 and showed an annual growth of 11.5% due to the change in the fleet mix. In RAC, the annual depreciation remained stable for the fifth consecutive quarter, totaling R$2.0 thousand per car. The depreciation of vehicles is calculated by the difference between the purchase price of the car and the Company's estimate for its sale price at the end of the rental periods, after deducting the provision for selling expenses. We highlight that the Unidas Used Cars Sales Committee monitors all the variables that make up the pricing of its assets in the segment of sale of used vehicles from 1 to 3 years old.

Operating Costs¹

(R$ million)

4Q19

with

IFRS 16

4Q18

with

IFRS 16

Var.

4Q19 vs.

4Q18

2019

with

IFRS 16

2018

Combined

with IFRS 16

Var.

2019 vs

2018

(-) Maintenance Costs and Others (162.7) (140.8) 15.5% (638.8) (504.3) 26.7%

(-) Personnel Costs (31.5) (20.6) 52.8% (101.6) (69.0) 47.1%

(+) PIS/COFINS Credits Recovery 45.4 32.9 38.0% 168.0 126.5 32.8%

(-) Other Operational Costs (17.9) (5.9) 202.2% (57.6) (28.0) 105.7%

= Cash Cost from Rental Activities (166.7) (134.5) 24.0% (629.9) (474.8) 32.7%

(-) Depreciation of Vehicles and Other Assets (103.2) (84.0) 22.9% (407.5) (333.9) 22.0%

= Total Cost from Rental Activities (270.0) (218.5) 23.6% (1,037.4) (808.8) 28.3%

Cash Cost as a % of Net Rental Revenues 28.7% 29.4% -0.7 p.p. 29.2% 29.1% 0.1 p.p.

Depreciation Cost as a % of Net Rental Revenues 17.8% 18.4% -0.6 p.p. 18.9% 20.5% -1.6 p.p.

Total Cost as a % of Net Rental Revenues 46.4% 47.8% -1.4 p.p. 48.1% 49.6% -1.5 p.p.

3.4

3.8

3.3

3.7

2018 2019 4Q18 4Q19

2.2

2.02.0 2.0

2018 2019 4Q18 4Q19

Depreciation per Operating Vehicle Fleet Management

(R$ thousand / Car)

Depreciation per Operating Vehicle Rent a Car + Franchises

(R$ thousand / Car)


+11.9%

+11.5% -8.2%

+0.6%

14

Operating Expenses (SG&A)

The representativeness of operating expenses in relation to net revenue remained unchanged in the annual comparisons of 4Q19 and 2019, as a result of the gain in operating leverage and the strict control of expenses, which allowed the full compensation of the greater exposure to the RAC segment, which intrinsically has higher SG&A expenses in relation to Fleet Management, and the robust investments made by the Company with a focus on the long term, such as (i) marketing and communication, (ii) IT, (iii) increased commercial strength with the expansion of Used Car Sales stores and team and (iv) adaptation of the back-office structure and team to support the growth of the coming years.

Operating Result

SG&A Expenses¹

(R$ million)

4Q19

with

IFRS 16

4Q18

with

IFRS 16

Var.

4Q19 vs.

4Q18

2019

with

IFRS 16

2018

Combined

with IFRS 16

Var.

2019 vs.

2018

(-) Recurring Selling Expenses (79.3) (54.9) 44.5% (289.1) (172.2) 67.8%

(-) Recurring General and Administrative Expenses (47.6) (37.2) 27.8% (153.9) (134.7) 14.2%

(-) Recurring Other (Expenses) Operational Revenue - 1.0 - 0.4 1.7 -78.6%

= Total Recurring Operating Expenses (ex-depreciation) (126.9) (91.1) 39.3% (442.6) (305.3) 45.0%

(-) Depreciation and Amortization of Other Assets (15.9) (13.4) 18.5% (60.8) (38.8) 56.7%

= Total Recurring Operating Expenses (142.8) (104.5) 36.6% (503.4) (344.1) 46.3%

Recurring Operating Expenses (ex-depreciation) as % Net Revenue 10.3% 10.2% 0.0 p.p. 9.5% 9.4% 0.1 p.p.

Recurring Operating Expenses as % Net Revenue 11.6% 11.8% -0.2 p.p. 10.8% 10.6% 0.2 p.p.

EBITDA and EBIT

(R$ million)

4Q19

with

IFRS 16

4Q18

with

IFRS 16

Var.

4Q19 vs. 4Q18

2019

with

IFRS 16

2018

Combined

with IFRS 16

Var.

2019 vs

2018

(+) Accounting Net Income 96.0 62.3 54.2% 338.1 192.4 75.7%

(-/+) Equity Method 2.3 (0.1) - (0.6) 1.0 -155.1%

(+) Income Taxes 29.9 15.4 94.4% 93.1 53.4 74.4%

(+) Recurring Financial Result 84.3 90.1 -6.5% 350.2 335.2 4.5%

(+) Extraordinary Financial Items - (0.1) - 16.3 3.8 327.2%

(+) Depreciation 119.1 97.4 22.3% 468.3 372.8 25.6%

= EBITDA 331.6 264.9 25.2% 1265.5 958.6 32.0%

(+) Extraordinary Expenses Items - 10.3 - - 58.7 -

= Recurring EBITDA 331.6 275.2 20.5% 1,265.5 1017.2 24.4%

EBITDA Margin¹ 57.0% 57.9% -0.9 p.p. 58.6% 58.8% (0.1) p.p.

Recurring EBITDA Margin¹ 57.0% 60.2% -3.2 p.p. 58.6% 62.4% (3.7) p.p.

= EBIT 212.4 167.5 26.8% 797.2 585.8 36.1%

= Recurring EBIT 212.4 177.8 19.4% 797.2 644.4 23.7%

EBIT Margin¹ 36.5% 36.6% -0.1 p.p. 36.9% 35.9% 1.0 p.p.

Recurring EBIT Margin¹ 36.5% 38.9% -2.4 p.p. 36.9% 39.5% (2.6) p.p.

(1) Margins calculated on Rental Revenue


15

EBITDA

Consolidated recurring EBITDA in 4Q19 reached a record level of R$331.6 million, reporting an annual growth of 20.5, explained by the expansion of RAC EBITDA by 37.2% and Fleet Management in 17.3%. In turn, the consolidated recurring EBITDA margin on net rental revenue totaled 57.0% in 4Q19, 3.3 p.p. less than the margin obtained in 4Q18, due to the greater exposure to the RAC segment, which has, intrinsically, lower margins in relation to the Fleet Management segment, and the lower EBITDA margin of Used Cars Sales.

To simplify investor analysis and demonstrate the actual comparison of EBITDA margins, the table below shows the comparison by segment.

In 4Q19, the Fleet Management EBITDA margin remained stable at 64.3%, due to the Company's ability to win contracts with higher average pricing and to improve its customer mix, allowing to fully mitigate the effects of the reduction in the basic interest rate.

In RAC (considering Franchises), the EBITDA margin was 47.1%, 1.2 p.p. lower than the margin in 4Q18, mainly explained by (i) the long-term investments in opex and (ii) the lower average tariff resulting the transfer of the drop in the basic interest rate to customers without impacting the spread of this business division.

The Used Cars Sales segment EBITDA margin was 0.7% in 4Q19, 2.1 p.p. lower than the 4Q18 margin, but in a smaller proportion

to the 3.5 p.p. reduction in the gross margin in the same period, explained by the operational leverage gain with the highest volume of vehicles sold and expansion of the average sales price in 12 months.

-25.8 -17.8 -11.811.9 42.1 67.8 32.5 11.9 4.3

222.6 240.5 260.6331.0

603.5664.7 787.5

170.3 199.7

187.7284.7

445.5

92.9 127.5196.8 222.7 248.8

345.0

833.3

1,017.2

1,265.5

275.2 331.6

52.6% 56.8%61.8% 66.0%

59.4% 62.4% 58.6% 60.2% 57.0%

-100%

-80%

-60%

-40%

-20%

00%

20%

40%

60%

-100,00

100,00

300,00

500,00

700,00

900,00

1100,00

1300,00

1500,00

1700,00

2014 2015 2016 2017 2018 2018Combined

with IFRS 16

2019with IFRS 16

4Q18with IFRS 16

4Q19with IFRS 16

Used Cars Sales Fleet Management Rent a Car + Franchises Recurring Rental Margin

Recurring EBITDA 2014 2015 2016 2017 2018

2018

Combined

with IFRS 16

2019

with

IFRS 16

Var.

4Q18

with

IFRS 16

4Q19

with

IFRS 16

Var.

Fleet Management¹ 59.6% 61.4% 64.8% 63.7% 64.8% 65.4% 64.8% (0.5) p.p. 64.3% 64.3% -

Rent a Car + Franchises¹ - - - - 39.8% 46.3% 47.2% 0.8 p.p. 48.3% 47.1% (1.2) p.p.

Rental¹ 59.6% 61.4% 64.8% 63.7% 56.4% 58.2% 57.1% (1.1) p.p. 57.6% 56.3% (1.3) p.p.

Used Cars Sales² (10.1)% (5.6)% (3.3)% 2.3% 3.0% 4.2% 1.3% (2.9) p.p. 2.8% 0.7% (2.1) p.p.

= Consolidated EBITDA¹ 52.6% 56.8% 61.8% 66.0% 59.4% 62.4% 58.6% (3.7) p.p. 60.2% 57.0% (3.2) p.p.

Recurring EBITDA and EBITDA Margin¹ (R$ Million)

+141.5%


+24.4%

(1) Margins calculated over Net Rental Revenue.

(2) Margins calculated over Net Used Cars Sales Revenue.

Record

Record

+20.5%

16

EBIT

Recurring consolidated EBIT totaled R$212.4 million in 4Q19, presenting a recurring EBIT margin of 36.5%, 2.4 p.p. lower in 12 months explained by the greater exposure to the RAC segment, the greater absolute depreciation in Fleet Management and the increase in depreciation of other assets, as already explained.

112.7 124.3 150.3216.8

553.0644.4

797.2

177.8 212.4

30.1% 31.7%37.4% 41.5% 39.4% 39.5% 36.9% 38.9% 36.5%

-100%

-80%

-60%

-40%

-20%

00%

20%

40%

-

200,00

400,00

600,00

800,00

1000,00

1200,00

2014 2015 2016 2017 2018 2018 Combinedwith IFRS 16

2019with IFRS 16

4Q18with IFRS 16

4Q19with IFRS 16

Consolidated Recurring EBIT Recurring Rental Margin

Recurring EBIT 2014 2015 2016 2017 2018

2018

Combined

with IFRS 16

2019

with

IFRS 16

Var.

4Q18

with

IFRS 16

4Q19

with

IFRS 16

Var.

Fleet Management¹ 30.1% 31.7% 37.4% 41.5% 43.9% 44.4% 41.8% (2.7) p.p. 41.9% 42.2% 0.2 p.p.

Rent-a-Car + Franchises¹ - - - - 30.7% 31.3% 30.7% (0.6) p.p. 34.7% 30.0% (4.7) p.p.

= Consolidated EBIT¹ 30.1% 31.7% 37.4% 41.5% 39.4% 39.5% 36.9% (2.5) p.p. 38.9% 36.5% (2.3) p.p.

Consolidated Recurring EBIT and EBIT Margin¹ (R$ Million)

+155.1%

+19.5%


(1) Margins calculated over Net Rental Revenue.

Record

+23.7%

Record

17

Net Financial Expenses

For another quarter, recurring net financial expense reduced its representativeness in relation to net revenue, which stood at 14.5% in 4Q19 (-5.2 p.p. YoY) and 16.2% in 2019 (-4.3 p.p. YoY), due to the reduction in the average cost of debt.

Net Income

Net income in 4Q19 was R$96.0 million, 39.2% higher than 4Q18 and the highest ever recorded for a quarter. In 2019, the annual expansion of net income was even greater, at 49.3%, totaling a record amount of R$348.8 million.

For both periods, the net margin also presented record levels due to the greater expansion of net profit in relation to the growth performed by Net Revenue.

Net Financial Expenses

(R$ Million)

4Q19

with

IFRS 16

4Q18

with

IFRS 16

Var.

4Q19 vs.

4Q18

2019

with

IFRS 16

2018

Combined

with IFRS 16

Var.

2019 vs.

2018

(-) Recurring Financial Expenses (115.3) (111.7) 3.2% (423.3) (396.1) 6.9%

(+) Recurring Financial Income 31.0 21.5 43.8% 73.1 60.9 20.0%

= Recurring Financial Result (84.3) (90.1) -6.5% (350.2) (335.2) 4.5%

Recurring Financial Result as % of Net Revenues¹ 14.5% 19.7% (5.2) p.p. 16.2% 20.5% (4.3) p.p.

(+/-) Extraordinary Items - 0.1 - (16.3) (3.8) 327.2%

= Accounting Financial Result (84.3) (90.0) -6.4% (366.5) (339.0) 8.1%

Accounting Financial Result as % of Net Revenues¹ 14.5% 19.7% (5.2) p.p. 17.0% 20.8% (3.8) p.p.

Net Income

(R$ million)

4Q19

with

IFRS 16

4Q18

with

IFRS 16

Var.

4Q19 vs.

4Q18

2019

with

IFRS 16

2018

Combined

with IFRS 16

Var.

2019 vs.

2018

(+) Accounting Net Income 96.0 62.3 54.1% 338.1 192.4 75.7%

(+) Extraordinary Items, net of Taxes - 6.7 - 10.7 41.2 (74.0)%

= Recurring Net Income 96.0 69.0 39.2% 348.8 233.6 49.3%

Net Margin¹ 16.5% 13.6% 2.9 p.p. 15.7% 11.8% 3.9 p.p.

Recurring Net Margin¹ 16.5% 15.1% 1.5 p.p. 16.2% 14.3% 1.9 p.p.

24.8 23.4 28.9

67.7

203.4233.6

348.8

69.096.0

6.6% 6.0% 7.2%12,9% 14.5% 14.3% 16.2% 15.1% 16.5%

-60%

-50%

-40%

-30%

-20%

-10%

00%

10%

0

50

100

150

200

250

300

350

400

450

2014 2015 2016 2017 2018 2018Combined

with IFRS 16

2019with IFRS 16

4Q18with IFRS 16

4Q19with IFRS 16

Recurring Net Income Recurring Net Margin

Recurring Net Income (R$ Million)

+200.4% +39.2%


ESULTADOS FINANCEIROS

Record

(1) Margins calculated over Net Rental Revenue

+49.3%

Record

18

Profitability Ratios The 2019 ROE was 15.4%, a reduction of 5.5 p.p. compared to 4Q18 annualized ROE, due to the higher level of the Company's shareholders' equity with the conclusion of the R$1.2 billion follow-on in December 2019.

In turn, the ROIC spread in relation to the average cost of debt in 2019 increased by 0.1 p.p. compared to 2018, despite the increasing exposure to the RAC segment.

8.1%

5.8%

9.1%

19.0%20.9%

15.4%

2014 2015 2016 2017 2018 2019

10.7%10.3%

12.3%12.7%

12.0%

11.3%

8.6%

9.9%

10.8% 8.8%

5.9%

5.0%

2014 2015 2016 2017 Combined 2018 Combined 2019

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.

Spread (ROIC less debt costs after taxes) ²

(1) The annualized ROE is calculated using the recurring accounting net income for each period divided by the monthly average shareholders’ equity adjusted for the deduction of the goodwill generated by the mergers with Auto Ricci and Unidas S.A. and the addition of the equity method valuation adjustment (Tangible Shareholders’ Equity).

(2) The annualized ROIC is calculated using the recurring EBIT less recurring effective tax rate (NOPAT), divided by the 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).


ROE Annualized ¹

-5.5 p.p.

19

Indebtedness

At the end of December 2019, the balance of Cash and Cash Equivalents of R$2.0 billion was sufficient to cover more than the totality of the Company's debt for the next three years. In December 2019, the Company successfully carried out a Primary and Secondary Offering of Shares totaling R$1.8 billion, in which there was a capital increase of R$1.2 billion and a consequent increase in the cash balance. Of the R$4.7 billion gross debt on December 31, 2019, 97.0% was made up of long-term debt, reflecting the conservative policy of

extending the debt profile. Of the 3.0% of total debt (R$142.2 million) that are in the short term, 54.3% or R$77.2 million refer to net interest incurred and swap. In turn, net debt totaled R$2.7 billion, 23.8% lower than the balance of September 30, 2019. .

Debt

(R$ million)4Q19 4Q18

Var.

4Q19 vs. 4Q183Q19

Var.

4Q19 vs. 3Q19

Gross Debt 4,695.2 3,924.3 19.6% 4,413.4 6.4%

Short Term Debt (%) 3.0% 8.4% (5.4) p.p. 3.1% (0.1) p.p.

Long Term Debt (%) 97.0% 91.6% 5.4 p.p. 96.9% 0.1 p.p.

Cash and Cash Equivalents 2,014.7 1,964.9 2.5% 895.1 125.1%

Net debt 2,680.5 1,959.4 36.8% 3,518.3 (23.8)%

2.028,4

65.0

703,7

1.178,8858,8 974,1

438,2186,7 124,2 50,0 50,0

Cash 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Amortization Schedule of Debt Principal in 12/31/2019

(R$ Million)


Cash equivalent to 104.2% of debt until 2022

20

Consolidated Leverage Ratios

* Debt and EBITDA adjusted with IFRS 16

Based on consolidated indebtedness and annualized indicators, at the end of 4Q19, the Net Debt / Annualized Recurring EBITDA ratio reached the level of 2.02x, 0.14x higher than the same period of the previous year.

Debt Composition In the following table, we present the main information on the Company’s outstanding debts at the end of 4Q19:

Debt (12/31/2019) Issuance

Date Average

Cost 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total

Unidas

13th debentures – 2nd series 06/23/2017 CDI + 1.40% - 125.0 125.0 - - - - - - - 250.0

14th debentures – single series 08/28/2017 CDI + 1.20% 25.0 25.0 25.0 - - - - - - - 75.0

15th debentures – 1st series 11/17/2017 CDI + 1.40% - 137.1 137.1 137.1 - - - - - - 411.4

15th debentures – 2nd series 02/19/2018 CDI + 1.15% - 88.6 - - - - - - - - 88.6

16th debentures – single series 04/27/2018 119% of CDI - - 116.7 116.7 116.7 - - - - - 350.0

17th debentures – single series 04/27//2018 113% of CDI - - 200.0 200.0 - - - - - - 400.0

18th debentures – single series 09/27/2018 108% of CDI - - - - 200.0 - - - - - 200.0

2nd promissory notes – single series 09/20/2019 CDI + 1.40% - 118.0 - - - - - - - - 118.0

Leasing 11/29/2017 13.79% 0.0 - - - - - - - - - 0.0

CRA (Unidas Agro) 12/18/2019 108.0% of CDI - - - - - 62.5 62.5 - - - 125.0

Unidas S.A.

10th debentures – 1st series 09/29/2017 CDI + 1.20% 40.0 - - - - - - - - - 40.0

10th debentures – 2nd series 09/29/2017 CDI + 1.60% - 210.0 210.0 - - - - - - - 420.0

11th debentures – single series 03/29/2018 117.5% of CDI - - 250.0 250.0 - - - - - - 500.0

12th debentures – 1st series 09/15/2018 110.6% of CDI - - 75.0 75.0 - - - - - - 150.0

12th debentures – 2nd series 09/15/2018 IPCA + 7.30% - - - - 50.0 50.0 - - - - 100.0

13th debentures – 1st series 04/10/2019 107.9% of CDI - - - - 527.4 - - - - - 527.4

13th debentures – 2nd series 04/10/2019 110.5% of CDI - - - - - 124.2 124.2 124.2 - - 372.6

13th debentures – 3rd series 04/10/2019 112.0% of CDI - - - - - - - - 50.0 50.0 100.0

Foreign Loan- 4131 07/26/2019 109.7% of CDI - - - - - 190.0 - - - - 190.0

14th debentures – single series 11/18/2019 109.7% of CDI - - 40.0 80.0 80.0 - - - - - 200.0

Incurred Net Interest

54.5

54.5

Total SWAP (MtM & Accrual)

22.7

22.7

Cash and equivalentes

(2,014.7)

(2,014.7)

Net Debt

(1,872.5) 703.7 1,178.8 858.8 974.1 426.7 186.7 124.2 50.0 50.0 2,680.5

Ratios 2014 2015 2016 2017 2018 2019 4Q18 4Q19*

Net Debt / Fleet Value 69.3% 59.8% 66.3% 63.1% 37.4% 37.9% 37.4% 37.9%

Net Debt / Annualized Recurring EBITDA 3,35x 2,85x 2,52x 2,51x 2.02x 2.08x 1.88x 2.02x

Net Debt / Equity 2.18x 1.98x 2.05x 2.09x 0,75x 0.71x 1.51x 1.08x

Recurring EBITDA / Net Financial Expenses LTM 2,34x 2,19x 2,17x 2.68x 2.90x 3.55x 3.03x 3.55x


21

Dividends and interest on shareholders’ equity (ISE) On December 23, 2019, the Board of Directors approved the payment of interest on equity in the total gross amount of R$40,030,007.11 (fourty million, thirty thousand and seven and eleven cents), equivalent to R$0.0794055596 per share. The payment to shareholders was made on January 10, 2020, in proportion to the ownership interest of each shareholder in the Company’s capital stock in circulation, based on the shareholding position of December 30, 2019.

Approval Date

Total Ammount

Declared

(R$ Million)

Value per Share

(R$)

Date of Shareholding

Position

March 23, 2017 5.609 0.0877435 March 29, 2017

June 22, 2017 5.340 0.0661356 June 27, 2017

September 21, 2017 5.420 0.0670874 September 26, 2017

December 18, 2017 5.520 0.0681917 December 21, 2017

January 3, 2018 17.501 0.2161837 January 8, 2018

March 26, 2018 8.090 0.0700350 March 29, 2018

June 22, 2018 25.213 0.2180625 June 26, 2018



March 21, 2019 45.272 0.3074359 March 26, 2019

June 19, 2019 39.856 0.2703706 June 25, 2019




22

Ownership Structure On December 31, 2019, the Company held 508,729,411 common shares on its capital stock with the free-float representing 62.7% of total shares including treasury shares.

LCAM3 Performance Unidas shares (LCAM3) closed the trading session on 03/11/2020 quoted at R$17.20, an increase of 34.0% in 12 months, while the IBOV index posted a decrease of 13.1% and the Small Cap index increased 11.0% for the same period. The average daily trading volume (ADTV) in the last twelve months was of R$42.1 million/day. Unidas currently has 16 equity research coverages: Banco do Brasil, Bank of America Merrill Lynch, Bradesco BBI, BTG Pactual, Citi, Coinvalores, Credit Suisse, Eleven Financial, Levante, Morgan Stanley, Itaú BBA, JP Morgan, Safra, Santander, UBS and XP.

7.7%10.6%

Luis Porto Sérgio Resende

Free-Float

Unidas S.A.

10.6% 8.4%

62.7%

100.0%

Controlling Shareholders

37.3%

Enterprise

Current Shareholding Structure

12/31/2019 - Including Treasury Shares

Dirley Ricci and RCC

Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20

LCAM3: +34.0%

IBOV: -13.1%

SMLL: +11.0%

ADTV LTM:R$42.1 MM

Current Shareholding Structure

12/31/2019 – Including treasury shares

VII – CAPITAL MARKETS

Performance LCAM3 12M x IBOV and SMLL

23

4Q19 Results Presentation (Webcast)

Teleconference in Portuguese (Simultaneous Translation) March 13, 2020

11 a.m. – Brasília Time 10 a.m. – New York Time

Telephones:

+1 844 204-8942 (Toll Free – United States)

+55 11 4210-1803 or +55 11 3181-8565 (Brazil)

+1 412 717-9627 (Other countries) Access Code: Unidas

Webcast and Results Presentation: https://ri.unidas.com.br/en/

Investor Relations Department Contacts:

Marco Tulio de Carvalho Oliveira – CFO and IRO Rodrigo Faria – Investor Relations Manager

Francesco Abenathar Fernandes Lisa – Investor Relations Specialist Rodrigo Finotto Perez – Investor Relations Analyst

Telephone: +55 (11) 3155-5826 / +55 (11) 3155-4987 / +55 (11) 3155-5892

E-mail: [email protected]

About Unidas – We are Brazil’s leading company in the Fleet Management segment, with approximately 85 thousand vehicles and number three in the Rent-a-Car segment, with approximately 80 thousand vehicles. Our strong competitive position, focus and scale will allow us to continue consolidating the market via organic growth. We have ample geographical coverage, with a presence in all Brazilian states. The Company offers solutions for the entire client cycle, both in the Fleet Management and the Rent-a-Car segments (Unidas 360° platform), in addition to the strong presence and expertise in the retirement of vehicles previously used in its operations.

Legal Notice - Statements contained in this document related to business prospects, forecasts of operating and financial results, and growth of Unidas are merely projections, and as such are exclusively based on management ’s expectations of future business. These expectations depend substantially on market conditions and the performance of the Brazilian economy, the sector and the international markets, and they are accordingly subject to change without notice.

https://ri.unidas.com.br/en/

mailto:[email protected]

24

Operating Data¹

Operating Data 2014 2015 2016 2017 2018 2019 Var. 4Q18 4Q19 Var.

Total Fleet at the End of the Period 30,424 31,184 27,731 46,566 129,926 162,842 25.3% 129,926 162,842 25.3%

Fleet being implemented 3,505 5,070 2,394 4,283 9,956 7,347 -26.2% 9,956 7,347 -26.2%

Demobilized fleet 3,735 2,796 1,529 1,964 10,046 14,004 39.4% 10,046 14,004 39.4%

Operating fleet 23,184 23,318 23,808 40,319 109,924 141,491 28.7% 109,924 141,491 28.7%

Average Operating Fleet 24,117 23,268 23,905 32,000 91,977 124,071 34.9% 105,131 124,140 18.1%

Fleet Management 24,117 23,268 23,905 32,000 58,421 71,943 23.1% 64,975 73,493 13.1%

Rent-a-Car - - - - 31,183 50,070 60.6% 37,743 57,148 51.4%

Rent-a-Car - Franchises - - - - 2,374 2,058 -13.3% 2,413 2,017 -16.4%

Average Rented Fleet 22,868 22,382 23,147 31,054 83,887 111,379 32.8% 95,229 118,742 24.7%


Rent-a-Car - - - - 24,140 39,035 61.7% 28,923 45,351 56.8%

Rent-a-Car - Franchises - - - - 2,354 2,058 -12.6% 2,413 2,017 -16.4%

Average Age of Operating Fleet (months) 17.9 15.8 18.6 18.9 14.6 12.9 -11.8% 13.0 12.7 -2.2%

Fleet Management 17.9 15.8 18.6 18.9 16.9 17.0 0.3% 16.6 16.7 0.9%

Rent-a-Car - - - - 7.3 7.1 -2.7% 6.9 8.3 19.7%

Rent-a-Car - Franchises - - - - 11.1 10.6 -4.1% 11.1 8.7 -21.9%

Number of Daily Rentals (thousand) 8,234 8,057 8,335 11,179 27,236 39,573 45.3% 8,395 10,561 25.8%


Rent-a-Car¹ - - - - 6,589 14,199 115.5% 2,642 4,137 56.6%

Average Ticket (R$)

Fleet Management (monthly) 1,502 1,609 1,597 1,546 1,489 1,597 7.3% 1,523 1,613 5.9%

Rent-a-Car (daily rate)¹ - - - - 74.4 70.9 -4.7% 76.7 70.5 -8.2%

Occupancy Rate

Fleet Management 94.8% 96.2% 96.8% 97.0% 98.2% 97.7% (0.5) p.p. 98.3% 97.7% (0.6) p.p.

Rent-a-Car¹ - - - - 77.4% 78.0% 0.6 p.p. 76.6% 79.4% 2.7 p.p.

Depreciation (R$ thousand)

Fleet Management 3.4 4.1 4 3.8 3.4 3.8 11.9% 3.3 3.7 10.5%

Rent-a-Car (Including Franchises) - - - - 2.2 2.0 -8.2% 2.0 2.0 1.5%

Average Fleet Value (R$ million)¹ 886.6 1,015.6 968.1 1,212.2 3,932.3 6,525.8 66.0% 4,980.5 7,043.5 41.4%

Number of Cars Purchased 14,177 13,068 9,122 19,747 68,702 93,493 36.1% 22,894 27,578 20.5%


Rent-a-Car - - - - 38,052 56,309 48.0% 14,251 17,427 22.3%

Rent-a-Car - Franchises - - - - 1,355 1,697 25.2% 495 549 10.9%

Average Purchase Price (R$ thousand) 36.5 39.0 36.1 43.5 42.9 47.8 11.5% 44.2 50.7 14.7%


Rent-a-Car - - - - 41.8 46.5 11.3% 41.8 49.7 18.8%

Rent-a-Car - Franchises - - - - 37.5 42.9 14.5% 38.7 43.9 13.5%

Number of Cars Sold 11,565 12,729 12,402 16,710 41,736 64,564 54.7% 12,129 16,679 37.5%


Rent-a-Car - - - - 15,696 33,151 111.2% 5,195 7,116 37.0%

Rent-a-Car - Franchises - - - - 1,015 1,644 62.0% 294 362 23.1%

Average Selling Price (R$ thousand) 22.1 24.8 28.4 31.4 33.5 39.0 16.5% 35.7 39.1 9.5%


Rent-a-Car - - - - 36.9 42.3 14.5% 39.0 41.8 7.3%

Rent-a-Car - Franchises - - - - 31.3 35.4 13.2% 34.5 37.8 9.7%

Number of Employees 637 574 589 801 2,601 3,314 27.4% 2,601 3,314 27.4%

Fleet per Employee 47.8 54.3 47.1 58.1 49.6 49.1 (0.9)% 49.6 49.1 -0.9%

Note: For Total Fleet we don’t consider Franchisee’s Fleet of 1,746 vehicles and for the average value of total fleet we consider vehicles in preparation and also operating and stock vehicles.

25

Consolidated Results (R$ thousand) 4Q18 with

IFRS 16

4Q19 with

IFRS 16

Var. 2018

Combined

with IFRS 16

2019

with IFRS 16 Var.

Rental Gross Revenues 291,950 345,400 18.3% 1,120,431 1,346,957 20.2%

Car sales for fleet renewal - gross revenues 220,739 340,821 54.4% 847,784 1,055,925 24.6%

Total gross revenues 512,689 686,221 33.8% 1,968,214 2,402,882 22.1%

Taxes on rental revenues (27,210) (34,558) 27.0% (103,324) (132,483) 28.2%

Taxes on car sales for fleet renewal (220) (391) 77.7% (763) (1,130) 48.0%

Total Taxes (27,430) (34,949) 27.4% (104,087) (133,612) 28.4%

Rental Net Revenues 264,740 310,842 17.4% 1,017,107 1,214,474 19.4%

Car sales for fleet renewal - net revenues 220,519 340,430 54.4% 847,020 1,054,795 24.5%

Consolidated Net Revenues 485,259 651,272 34.2% 1,864,128 2,269,269 21.7%

Rental Costs (ex-depreciation) (68,034) (78,324) 15.1% (252,243) (308,440) 22.3%

Car sales for fleet renewal - costs (ex-depreciation) (196,428) (309,798) 57.7% (751,534) (959,511) 27.7%

Total Costs (ex-depreciation) (264,462) (388,122) 46.8% (1,003,776) (1,267,951) 26.3%

Gross Profit 220,797 263,150 19.2% 860,351 1,001,318 16.4%

Rental Operating Expenses (SG&A, ex-depreciation) (26,361) (32,768) 24.3% (100,180) (118,501) 18.3%

Operating Expenses (SG&A) - Car sales for fleet renewal (ex-depreciation) (19,131) (21,674) 13.3% (58,530) (63,553) 8.6%

Total Operating Expenses (SG&A) (45,492) (54,441) 19.7% (158,710) (182,054) 14.7%

Depreciation (64,268) (77,474) 20.5% (249,756) (312,025) 24.9%

Recurring EBIT 111,038 131,235 18.2% 451,885 507,239 12.2%

Financial Expenses, net (60,762) (44,435) (26.9)% (228,511) (188,937) (17.3)%

Recurring EBT 50,276 86,799 72.6% 223,374 318,302 (42.5)%

Taxes (6,829) (20,236) 196.3% (48,322) (70,200) 45.3%

Recurring Net Profit 43,447 66,563 53.2% 175,052 248,102 -41.7%

Net Margin over Total Net Revenue 9.0% 10.2% 1.3 p.p. 9.4% 10.9% 1.5 p.p.

Recurring EBITDA 175,306 208,709 19.1% 701,642 819,264 16.8%

EBITDA Margin over Total Net Revenue 36.1% 32.0% (4.1) p.p. 37.6% 36.1% (1.5) p.p.

Dados Operacionais 4Q18 4Q19 Var. 2018 Combined 2019 Var.

Average Rented Fleet 63,893 71,374 11.7% 62,951 70,286 11.7%

Average Operating Fleet 64,975 73,493 13.1% 63,979 71,943 12.4%

Fleet at the end of the period 74,704 85,027 13.8% 74,704 85,027 13.8%

Average Age of the Operating Fleet (month) 16.6 16.7 0.9% 16.6 17.0 2.0%

Number of Daily Rentals (thousand) 5,753 6,424 11.7% 22,624 25,374 12.2%

Average Monthly Ticket (R$) 1,523 1,613 5.9% 1,483 1,597 7.7%

Annualized average depreciation per car (R$) 3,328.8 3,678.8 10.5% 3,406.0 3,804.6 11.7%

Utilization Rate 98.3% 97.1% (1.2)% 98.4% 97.7% (69.7)%

Number of cars purchased 8,148 9,602 17.8% 31,536 35,487 12.5%

Number of cars sold 6,640 9,201 38.6% 26,957 29,769 10.4%

Average sold fleet age (month) 28.2 31.4 11.4% 30.0 28.9 (3.6)%

Average value of total fleet (R$ million) 2,845 3,582 25.9% 2,777 3,282 18.2%

Average value per car in the period (R$ thousand) 38.6 42.1 9.1% 39.5 40.0 1.4%

Fleet Management (R$ Million)

(1) Considers vehicles’s preparation for sale.

(2) Considers vehicles in preparation, operating and in stock.

26

Consolidated Results (R$ thousand) 4Q18

with IFRS 16 4Q19

with IFRS 16 Var. 2018 with

IFRS 16 2019 with IFRS 16

Var.

Rental Gross Revenues 211,539 299,193 41.4% 674,351 1,038,625 54.0%

Car sales for fleet renewal - gross revenues 212,271 311,352 46.7% 773,456 1,462,570 89.1%

Total gross revenues 423,810 610,545 44.1% 1,447,807 2,501,195 72.8%

Taxes on rental revenues (19,051) (28,492) 49.6% (60,080) (94,826) 57.8%

Taxes on car sales for fleet renewal (741) (357) (51.9)% (1,874) (1,911) 2.0%

Total Taxes (19,792) (28,849) 45.8% (61,954) (96,737) 56.1%

Rental Net Revenues 192,488 270,701 40.6% 614,271 943,799 53.6%

Car sales for fleet renewal - net revenues 211,530 310,995 47.0% 771,582 1,460,659 89.3%

Consolidated Net Revenues 404,018 581,696 44.0% 1,385,853 2,404,458 73.5%

Rental Costs (ex-depreciation) (66,462) (88,409) 33.0% (222,597) (321,481) 44.4%

Car sales for fleet renewal - costs (ex-depreciation) (192,059) (298,006) 55.2% (701,123) (1,376,193) 96.3%

Total Costs (ex-depreciation) (258,521) (386,415) 49.5% (923,720) (1,697,674) 83.8%

Gross Profit 145,497 195,281 34.2% 462,133 706,784 52.9%

Rental Operating Expenses (SG&A, ex-depreciation) (33,086) (54,795) 65.6% (107,022) (176,814) 65.2%

Operating Expenses (SG&A) - Car sales for fleet renewal (ex-depreciation)

(12,549) (17,615) 40.4% (39,566) (83,695) 111.5%

Total Operating Expenses (SG&A) (45,635) (72,410) 58.7% (146,588) (260,509) 77.7%

Depreciation (33,109) (41,656) 25.8% (122,980) (156,287) 27.1%

Recurring EBIT 66,753 81,215 21.7% 192,564 289,987 50.6%

Financial Expenses, net (29,369) (39,835) 35.6% (106,670) (161,297) 51.2%

Recurring EBT 37,384 41,380 10.7% 85,895 128,690 (49.8)%

Taxes (11,991) (9,647) (19.5)% (26,017) (28,479) 9.5%

Recurring Net Profit 25,393 31,733 25.0% 59,877 100,211 (67.4)%

Net Margin over Total Net Revenue 6.3% 5.5% (0.8) p.p. 4.3% 4.2% (0.2) p.p.

Recurring EBITDA 99,862 122,871 23.0% 315,545 446,274 41.4%

EBITDA Margin over Total Net Revenue 24.7% 21.1% (3.6) p.p. 22.8% 18.6% (4.2) p.p.

Operating Data 4Q18 4Q19 Var. 2018 2019 Var.

Average Rented Fleet (Own Stores) 28,923 45,351 56.8% 23,592 39,035 65.5%

Average Rented Fleet (Fanchises) 2,413 2,017 (16.4)% 2,439 2,058 (15.6)%

Average Operating Fleet (Own Stores) 37,743 57,148 51.4% 29,949 50,070 67.2%

Average Operating Fleet (Franchises) 2,413 2,017 (16.4)% 2,439 2,058 (15.6)%

Fleet at the end of the period (Own Stores) 52,271 75,230 43.9% 52,271 75,230 43.9%

Fleet at the end of the period (Franchises) 2,951 2,585 (12.4)% 2,951 2,585 (12.4)%

Average Age Operating Fleet (Own Stores, month) 6.9 8.3 19.7% 7.5 7.1 (4.9)%

Average Age Operating Fleet (Franchises, month) 11.1 8.7 -21.9% 10.9 10.6 -1.9%

Number of Daily Rentals (Own Stores, thousand) 2,642 4,137 56.6% 8,554 14,199 66.0%

Average Daily Ticket (Own Stores, thousand) 76.7 70.5 (8.2)% 74.3 70.9 (4.5)%

Annualized average depreciation per car (Considers Franchises) 2.0 2.0 1.5% 2.2 2.0 (8.3)%

Utilization Rate (Own Stores) 76.6% 79.4% 2.7 p.p. 78.8% 78.0% -0.8 p.p.

Number of cars purchased (Own Stores) 14,251 17,427 22.3% 39,747 56,309 41.7%

Number of cars purchased (Franchises) 495 549 10.9% 1,566 1,697 8.4%

Number of cars sold (Own Stores) 5,195 7,116 37.0% 20,039 33,151 65.4%

Number of cars sold (Franchises) 294 362 23.1% 1,398 1,644 17.6%

Average Sold Fleet Age (Own Stores, month) 17.6 16.6 (5.5)% 17.5 16.4 (6.4)%

Average value of total fleet (Considers Franchises, R$ million) 2,135.4 3,461.3 62.1% 1,670 3,243.9 94.3%

Average value per car in the period (Considers Franchises) 41.3 41.6 0.7% 39.6 40.0 1.0%

Rent a Car (Considers Franchises, R$ Million)¹

(1) We presente Unidas S.A. track record for the Rent a Car (including Franchises) segment for the entire period, as Locamerica did not operate in this segment up to 1Q18;

(2) Considers vehicles’ preparation for sale.

(3) Considers vehicles in preparation, operating and in stock.

27

Income Statement (R$ million)

F inancial St at ement s2 0 18 C ombined

wit h IFR S16

2 0 19

wit h IFR S16V ar.

4 Q18

wit h IFR S16

4 Q19

wit h IFR S16V ar.

Rental Gross Revenues 1,794,782 2,385,581 32.9% 503,489 644,593 28.0%

Car sales for f leet renewal - Gross Revenues 1,621,261 2,518,495 55.3% 433,010 652,173 50.6%

Taxes over Gross Revenues (166,041) (230,350) 38.7% (47,222) (63,798) 35.1%

C onso lidat ed N et R evenues 3 ,2 50 ,0 0 2 4 ,6 73 ,72 7 4 3 .8 % 8 8 9 ,2 77 1,2 3 2 ,9 6 8 3 8 .6 %

M aintenance Costs (474,843) (629,921) 32.7% (134,500) (166,733) 24.0%

Depreciat ion Costs (333,937) (407,517) 22.0% (83,963) (103,230) 22.9%

Cost of vehicles sold (1,452,678) (2,335,705) 60.8% (388,487) (607,804) 56.5%

R ent al and vehicle sales cost s ( 2 ,2 6 1,4 58 ) ( 3 ,3 73 ,14 3 ) 4 9 .2 % ( 6 0 6 ,9 50 ) ( 8 77,76 7) 4 4 .6 %

Gross pro f it 9 8 8 ,54 4 1,3 0 0 ,58 4 3 1.6 % 2 8 2 ,3 2 7 3 55,2 0 1 2 5.8 %

Sales (172,249) (289,066) 67.8% (54,863) (79,290) 44.5%

Administrat ive and general (193,414) (153,859) -20.5% (47,469) (47,562) 0.2%

Depreciat ion (38,799) (60,794) 56.7% (13,414) (15,900) 18.5%

Other operat ional revenues (costs) 1,695 362 - 990 - -

Operat ing Expenses ( 4 0 2 ,76 7) ( 50 3 ,3 57) 2 5.0 % ( 114 ,756 ) ( 14 2 ,752 ) 2 4 .4 %

Operat ing income ( EB IT ) 58 5,776 79 7,2 2 7 3 6 .1% 16 7,572 2 12 ,4 4 9 26.8%

Financial expenses (399,922) (439,586) 9.9% (111,678) (115,251) 3.2%

Financial income 60,934 73,098 20.0% 21,673 30,981 42.9%

N et f inancial income ( expenses) ( 3 3 8 ,9 8 8 ) ( 3 6 6 ,4 8 8 ) 8 .1% ( 9 0 ,0 0 5) ( 8 4 ,2 70 ) ( 6 .4 ) %

Earnings B ef ore Taxes ( EB T) 2 4 6 ,78 8 4 3 0 ,73 9 74 .5% 77,56 7 12 8 ,179 6 5.3 %

Income Tax and Social C ont r ibut ion Tax ( 53 ,3 9 3 ) ( 9 3 ,0 9 8 ) 74 .4 % ( 15,3 74 ) ( 2 9 ,8 8 2 ) 9 4 .4 %

Extraordinary Items - Opex (Effect on EBITDA and on Net Income) 58,666 - - 10,257 - -

Extraordinary Items - Financial Result (Effect on Net Income) 3,805 16,255 327.2% (127) - -

Ext raord inary It ems 6 2 ,4 71 16 ,2 55 ( 74 .0 ) % 10 ,13 0 - -

Ext raord inary It ems, net o f IT / SC at 3 4 % 4 1,2 3 1 10 ,72 8 ( 74 .0 ) % 6 ,6 8 6 - -

Equit y M et hod (1,018) 561 - 121 (2,300) -

R ecurring N et Income 2 3 3 ,6 0 8 3 4 8 ,9 3 0 4 9 .4 % 6 8 ,9 9 9 9 5,9 9 7 3 9 .1%

R ecurring EB ITD A 1,0 17,178 1,2 6 5,53 8 2 4 .4 % 2 75,2 0 5 3 3 1,579 2 0 .5%

28

Consolidated Balance Sheets (R$ thousand)

ASSETS 2014 2015 2016 2017 2018 2019

CURRENT ASSETS

Cash and cash equivalents 167.313 121.779 172.478 402.489 1.755.864 1.770.114

Receivables from customers 118.194 121.724 87.688 136.913 377.743 457.875

Bonds and securities 35.306 156.411 29.544 21.516 207.324 243.240

Retiring vehicles for renewing the fleet 95.809 78.960 47.616 63.965 330.290 475.704

Vehicles for resale - - - - - - - - - - 20.780

Recoverable taxes 17.479 21.895 33.959 38.935 73.730 86.473

Prepaid expenses 6.140 5.321 2.948 13.681 10.926 13.198

Derivative financial instruments 3.495 14.210 - - - - - - 0

Related parties - - - - - - - - 16.850 34.465

Other short-term assets 7.825 8.977 9.585 14.158 11.872 20.251

Total current assets 451.561 529.277 383.818 691.657 2.784.599 3.122.100

NON-CURRENT ASSETS

Receivable from customers 6.861 6.353 7.425 2.639 6.399 16.202

Bonds and securities - - - - 3.333 6.721 1.710 1.340

Antecipated Expenses

Other long-term assets 3.102 302 2.913 2.121 3.064 2.116

Deferred taxes - - - - - - - - 37.580 30.003

Deposits in court 7.294 8.699 9.521 14.379 49.829 59.771

Assets held for sale - - - - - - - - 3.223 2.373

Related parties - - - - - - - - 302 282

Property for Investment - - - - - - - - - - 850

Property, plant and equipment 890.832 998.756 917.407 1.591.234 4.957.861 6.705.097

Right-of-use asset - - - - - - - - - - 132.595

Investments - - - - - - 442 2 2

Intangible assets 5.321 4.334 4.800 85.409 899.949 974.133

Total non-current assets 913.410 1.018.444 945.399 1.702.945 5.959.919 7.925.894

TOTAL ASSETS 1.364.971 1.547.721 1.329.217 2.394.602 8.744.518 11.047.994

LIABILITIES 2014 2015 2016 2017 2018 2019

CURRENT LIABILITIES

Suppliers 63.436 101.280 71.258 168.193 976.041 1.450.247

Loans, financing, debentures and derivative financial instruments 37.869 227.604 125.328 250.294 330.193 142.216

Real state lease - - - - - - - - - - 38.536

Assignment of credits by vendors 78.761 155.774 82.753 186.463 998.086 476.620

Salaries, charges and social contribution taxes 3.358 3.075 5.484 10.499 23.997 42.490

Tax-related duties 1.845 1.493 1.600 6.945 21.730 23.331

Dividends and interest on equity payable 8.566 10.711 - - 4.941 25.567 35.872

Related parties - - - - - - - - 13.840 32.370

Other accounts payable 837 22 12.754 4.778 26.623 36.720

Tax payable IRPJ/CSLL 586 - - - - - - - - - -

Total current liabilities 195.258 499.959 299.177 632.113 2.416.077 2.278.402

NON-CURRENT LIABILITIES

Loan, financing and debentures 840.472 698.836 707.975 1.212.482 3.594.154 4.553.004

Real state leasing - - - - - - - - - - 94.059

Provisions for contingencies 2.595 2.595 2.595 11.721 108.846 115.885

Deferred taxes 18.700 20.735 17.715 51.091 57.574 100.881

Other accounts payable - - - - 862 3.914 2.321 1.352

Total non-current liabilities 861.767 722.166 729.147 1.279.208 3.762.895 4.865.181

Total liabilities 1.057.025 1.222.125 1.028.324 1.911.321 6.178.972 7.143.583

SHAREHOLDERS' EQUITY

Capital stock 299.279 299.279 299.279 397.900 1.969.517 3.195.790

Share issue expenses (15.038) (15.038) (15.038) (15.038) (47.336) (100.888)

Treasury shares (5.906) (5.906) (5.061) (9.785) (9.925) (35.562)

Asset valuation adjustments - - 4.864 (9.176) (11.914) (16.291) (20.925)

Capital reserve 6.743 7.014 7.647 60.167 528.961 550.969

Profit reserve 22.868 35.383 23.242 61.951 140.620 315.027

Retained earnings - - - - - - - - - - - -

Total shareholders' equity 307.946 325.596 300.893 483.281 2.565.546 3.904.411

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1.364.971 1.547.721 1.329.217 2.394.602 8.744.518 11.047.994

(1) Considers derivative financial instruments line.

29

Cash Flow (R$ thousand)

STATEMENT OF CASH FLOW 2014 2015 2016 2017 2018 2019

Cash flow from operating activities Income for the period 24.788 18.561 28.907 60.599 189.202 338.146Adjustments by:Income tax and social contribution tax on profit 6.218 3.891 6.914 20.257 52.924 93.445Depreciation and amortization 84.054 98.448 98.501 137.550 294.204 471.033Provisions of claims and stolen cars - - - - - - - - 29.962 54.747Written-off residual value of retiring cars for renewing the fleet 256.999 311.212 332.814 479.218 1.298.431 2.439.167Residual value of stolen vehicles and total loss - - 14.689 14.557 10.543 51.459 76.410Share-based payment provision 582 271 699 1.590 5.844 13.396Financial charges on financing 90.381 121.040 129.408 123.099 258.820 283.963Allowance for doubtful accounts 8.947 14.524 9.180 5.754 10.743 33.227Provisions for contingencies - - - - - - 3.281 (834) 7.240Provision for profit sharing - - - - 2.366 4.425 12.988 4.669Adjustment to present value - - 429 1.044 (755) (296) 754Tenancies of immovable property - - - - - - - - - - 8.996Provision for impairment - - - - - - (951) - - - -Assignment cost - - 3.402 9.689 4.324 35.539 43.068Cost of raising capital through debentures - - - - - - 24.760 - - - -SWAP - - - - - - 18.537 26.620 14.894Other (823) (139) 5.270 4.238 16.508 43.001Adjusted Income 471.146 586.328 639.349 896.469 2.282.114 3.926.156

Changes in Assets and LiabilitiesReceivables from customers (20.410) (17.564) 22.740 (18.466) (65.342) (113.363)Recoverable taxes (1.415) (12.979) (14.765) (3.958) (13.678) (12.656)Prepaid expenses 2.119 820 2.133 (3.069) 40.152 (1.513)Acquisition of vehicles net of the balance payable to suppliers (automakers) (483.139) (378.223) (404.438) (699.025) (1.910.761) (4.651.855)Other assets 6.103 (4.886) (3.801) (10.407) (30.164) (100.491)Suppliers - excluding automakers (3.917) 8.032 (2.409) 4.985 (36.789) (6.662)Payment of taxes - - - - - - - - - - (31.490)Other liabilities (25.776) (5.535) 12.240 (21.759) (41.636) (81.001)Net cash provided by operating activities (55.289) 175.993 251.049 144.770 223.896 (1.072.876)

Cash flow from investing activitiesAcquisitions of investments - - - - - - (177) (210.004) (49.992)Acquisitions of other investments s - - - - - - - - 442 - -Loans to related parties - - - - - - - - 5.767 - -Acquisition of other property, plant and equipment and intangible assets (4.256) (3.682) (4.439) (21.956) (31.379) (119.031)Acquisition of bonds and securities 33.226 (121.105) 123.534 4.640 (180.797) (35.546)Net cash provided by investing activities 28.970 (124.787) 119.095 (17.493) (415.971) (204.569)

Cash flow from financing activitiesInterest on loans, financing and debentures paid (80.566) (110.636) (121.047) (126.383) (262.497) (277.327)Capital raised through loans, financing and debentures 358.575 114.766 235.340 892.082 1.965.408 1.699.723Amortization of loans, financing and debentures (189.600) (97.857) (384.262) (642.601) (998.279) (1.100.718)Issuance of shares and funds from the stock option plan (5.906) - - 779 2.325 3.029 4.767Distribution of Interest on Equity and Dividends (13.681) (3.000) (50.255) (14.731) (75.795) (130.720)Share buy back - - - - - - (7.957) (3.544) (39.979)Interest on equity paid to the shareholders of the subsidiary Unidas S.A. prior to the

business combination- - - - - - - - (27.536) - -

Amount raised by the common shares issuance (follow-on), net of funding costs - - - - - - - - 944.664 1.135.948

Net cash provided by financing activities 68.822 (96.727) (319.445) 102.735 1.545.450 1.291.694

Increase (decrease) in cash and cash equivalents 42.503 (45.521) 50.699 230.012 1.353.375 14.249

Statement of decrease in cash and cash equivalentsAt the beginning of the period 124.810 167.300 121.779 172.478 402.489 1.755.864At the end of the period 167.313 121.779 172.478 402.489 1.755.864 1.770.114

Activities not affecting cashTotal vehicles + accessories acquired for property, plant and equipment (517.860) (509.888) (329.046) (859.932) (3.028.658) (4.472.497)Total of vehicles acquired for resaleChange net of the balance payable to suppliers (automakers) 34.720 110.877 (110.323) 160.907 1.117.897 (68.121)

Total cash paid or provisioned in the acquisition of vehicles (483.140) (399.011) (439.369) (699.025) (1.910.761) (4.651.855)

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