Institutional Presentation

August 2016

Section 1

Unidas At a Glance

Unidas At a Glance

3rd largest Brazilian

car rental company
by total fleet, with
nationwide operations
in fleet management
solutions, car rental
and used car sales
Total Fleet 2Q16(1)
45,635

Notes:
(1)

Integrated business
model that leverages
on economies of
scale in all stages of
the value chain,
maximizing returns to
shareholders

3rd fastest growing

car rental company
in Brazil (2014), by
fleet size, among
competition that
discloses such
information, with
increasing
profitability (ROIC)

Strong brand, with

high quality
standards, proven by
several indicators, and
focused on customer
satisfaction

Top-notch
sponsorship,
combining operational
and financial discipline
expertise, with a fully
aligned management
team, driving long-term
value creation

3
Total number of cars at 2Q16

Successful Track-Record
Growth History
1985-2000

2001-2010

2011-2013

Future

Foundation

SAG and Growth

Restructuring Period

Next Level of Growth

Unidas was founded in 1985

through the merger of 5 car
rental companies and the entry
of 2 investors

In 2001, SAG Group acquired

Unidas
In 2004, the first store for Used
Vehicle Sales was opened
In 2005, the franchise business
model (Franquia Chave na
Mo) was launched
Total fleet CAGR 2005-2010:
12.5% p.a.

Restructuring process with focus

on growth, profitability and
service quality
R$ 300mm investment by Vinci,
Gvea and Kinea, 3 well-known
Brazilian private equity firms
Strategic partnerships with
Enterprise (largest car rental
company in the world by revenue
and fleet) and TAM (largest
airline operating in Brazil)
Acquisition of Best Fleet, fleet
management company focused
on the premium segment

IPO
Primary proceeds to
accelerate growth
Maintain focus on:
Profitable growth
Service quality
Financial discipline
Cost management

Section 2

Unidas Business Model

Integrated and Diversified Business Model

Total Fleet 2Q16(1): 45,635 units

Rent-a-Car (RaC)
LTM 2016

Fleet Management
LTM 2016

Country Wide Coverage

Net Revenues: R$293.2 mm

Fleet Size(1): 19,047

Net Revenues: R$287.6 mm

Fleet Size(1): 24,007

Airport Stores 50 (24%)

Out of Airport 161 (76%)
* New Used Car
Store
Recife - PE
Store Opening
in July/2016

Franchise Stores (116)

Own Stores (95)

Used Car
Sales

Used Car Stores (46) *

(Own and Franchise)

Franchise

LTM 2016

LTM 2016

Number of cars sold: 19,120

Net Revenues: R$30.7 mm

Fleet Size(1): 2,581

Notas:
(1)

~61% of sales through retail

stores
6

Total number of cars at 2Q16

Industry Growth Opportunities

Good long-term prospects will drive industry growth in the short and long term
Fast Growing Industry

Fragmented Market

Low Corporate Fleet Outsourcing Penetration & Increasing Affordability

Car Rental Market - Fleet

Underpenetrated Market

70.0%

58.3%

60.0%

CAGR
(05-15)

12.7%

13.1%

375

478

12.9%

37.4%

853

332

2013

223

2012

211

2011

200

2010

182

2009

174

2008

143

441
307

773

20.0%

530

279

10.0%

490

245

8.9%

13.3%

74.0%

20.9%

TOP 3
PLAYERS

26%

0.0%

414

Car Rental Affordability

363

175

5.4%

15.8% 16.5%

445

232
189

5.1%

24.5%

30.0%

2014

(2015)

46.9%

50.0%

40.0%

2015

Market Share (by car rental fleet)

319

750
650

724 788
545 622 678
350 380 415 465 510

Other
7%

550
450
350
250
150
50

2007

128 156

2006

115 135

2005

Monthly Minimum Wage (R$)

284

22% 20%
18% 16%
15% 15% 13%
12% 11% 10%

250

101 123 224

0

100

200

300

400

500

600

700

800

900

RaC (Total Fleet) [#000]

Fleet Mgmt (Total Fleet) [#000]

Source: ABLA (Brazilian Car Rental Association) and Companies Releases.

1.000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Daily Rental Price Over Minimum Wage (%)

TOP 3
PLAYERS

93%
(2015)

Rent-a-Car
3rd largest player (2015) in the fragmented RaC segment. Significant turnaround improvements already underway

Huge Space for Growth

Strong Growth Already Happening

Market Share(%) (1)

Rental Days (# thousand)

(2015)

Others

59.6%

5.1%
20.4%
9.9%

1.5%

3.5%

Significant Efficiency Improvements

Utilization Rate (%) and Average Rate per Day (R$)

Own
Stores

35

43

53

81

84

95

Franchise
Stores

60

67

69

77

96

116

Continuous performance improvements and

potential to grow further
Well positioned in the leisure segment
Focus on to improving the penetration in large segments,
such as Replacement and Corporate Rentals

Note: (1) In terms of fleet size.

Source: ABLA and players that disclose such information

Fleet Management
Unidas has a strong position in the fragmented Fleet Management segment , a diversified client base and is uniquely
positioned to take advantage of significant growth upside

Resilient Segment

Balanced Customer Base

Long-term Contracts

Different Fleet Sizes and Low Concentration

Low Fixed Costs

Diversified Client Base
Unidas has a diversified client base, consisting of (i) contracts
with less than 50 vehicles, which have higher margins; and (ii)
contracts with larger customers, which allow Unidas to benefit
from gains of scale
Acyclical business, with predictable revenues even in
unfavorable economic scenarios

Top 10 Customers (2Q16)

Breakdown of Customer Base

(in terms of Revenues)

(in terms of # customers)

10%

981
20.1%

Number of vehicles
>501 - 0.5%
101 a 500 - 2.1%
51 a 100 - 4.0%

73.3%

11 a 50 - 20.1%
1 a 10 - 73.3%

90%
Jun/16

Market Share % (2)

Unique positioning and significant
potential to increase profitability

5th player(1) in the fragmented Fleet

Management market
Fleet of 24,007 cars (2Q16)
Net Revenues: R$287.6 mm
(LTM 2Q16)

Others

4.3%

65.4%

Balanced client base, with a mix between

large and medium/small companies
Presence in diversified segments and
geographies

7.1%
6.5%
5.0%
3.4% 3.7%

4.6%
(2015)

Source: ABLA and Companies releases.

Note: (1) Considering players that disclose such information. (2) In terms of fleet size.

Used Car Sales

Unidas has two efficient channels for fleet sales in its used car sales business: (i) own and franchise stores (retail,
~61% of total sales); and (ii) wholesale

Country Wide Coverage

New Used Car Store
Recife - PE
Store Opening in July/2016

Distribution Platform
Focus on Retail approx. 61% of sales
Higher average price of sale
Improvement in resulting depreciation
Franchising used car sales stores
Increase in capillarity
Low Capex requirement
Reduction of logistics costs
Cash generation for the purchase of new vehicles
Used Car Stores
(Own and Franchise)

RaC Stores (211)

Used Car Sales

(Own and Franchise)

23 own stores
23 franchise stores

(Own and Franchise)

Used Car Stores (46)

(Own and Franchise)

24
8

34

41 45 46

30%

70%

11
Own Stores
Franchise Stores

Nota: (1) Considering the total sale of own and franchise stores of 2Q16.

10

Characteristics of Unidas business

Consolidated Business Model with Strong Upside Potential
Complementary business segments generating economies of
scale and profitability

Financial Strength Focused on Value Creation

Value creation through financial discipline and cost
management

Main Improvements and Upsides To Be Captured

RaC and other segments key strategies to boost companys
results

11

Consolidated Business Model with Strong

Upside Potential
Unidas is uniquely positioned in its 4 key platforms to benefit from additional upsides
Fundraising

Purchase of New Vehicles

Ratings

brA+ | Stable outlook

AA-(bra) | Stable outlook
Marginal Cost of Debt Long Term(1)
Contracted in 2Q16: CDI + 3.00%

New vehicles purchased directly from

manufacturers (23,169 purchased vehicles in
the 2Q16 LTM)
Fleet reached 45,635 cars as of 2Q16

(1) Considering the 7th Debenture Issue and the 6th Commercial Paper Issue.

Used Car Sales

Rental Revenues

Retail Stores (Own and Franchise):

Concentrates the majority of companys
revenue used car sales approx 61%

Wholesale: sales made through car

auctions or through used car dealers

Rent-a-Car
+
Franchise

Fleet
& Management

Highly predictable used car sales volume and mix

An integrated business model designed to create value through: (i) complementary business segments (cross-selling
opportunities); (ii) economies of scale and (iii) operational efficiencies
12

Financial Strength Focused on Value

Creation
Unidas has significantly improved its financial performance and profitability by focusing on financial controls and
cost efficiencies
... aligned with cost
has created value for
Financial discipline ...
management
shareholders

Net Debt/EBITDA Ratio and Cost of Debt1 (a.a.)

Capital
Increase

Marginal Cost
CDI +3.00%

Adj. EBIT (BRL MM) and Adj. EBIT Margin 2

Adj. Net Income (BRL MM) and Net Margin 2

ROIC3 = NOPAT4 / (Vehicle Purchase Price)

ROE = Adj. Net Income2/ Shareholders Equity5

Best Fleet
Acquisition

Rating: brA- S&P and

AA-(bra) Fitch Ratings

Notes: (1) Spread over CDI per year. (2) Consolidated EBIT and Net Income Adjusted for non-recurring items: IPO expenses cancelled in the first quarter of 2014 and Deferred Taxes; Margins are based on rental revenues. (3) Vehicle cycle: 2.1
years (4) NOPAT considers the adjustment for non-recurring depreciation resulted from IPI reduction and an effective tax rate of the period (LTM); (5) Annual average shareholders equity.

13

Unidas Has a Solid Strategy to Continue

Profitable Growth
Continuously seek and take advantage of opportunities to gain scale and efficiency
Profitable Growth Strategy
Expand Top-Line

Rent-a-Car

Increase Margins

Fleet Management

M&A

Harness industry growth

drivers

Maximize profitability with

specialized offerings

Take advantage of sector

fragmentation

Fixed cost dilution over

larger revenue base

Leisure: Reinforce Strong

Presence
Corporate/Replacement:
Looking for new
opportunities
Maintenance of superior
customer service

Underpenetrated
corporate fleet market

Analyze targets case-bycase with focus on value

creation

Targeted variable cost

reduction

Profitable diversified client

base

Contracts pricing
discipline

Best Fleet acquisition

Premium segment
3.6x EBITDA 12

Increased Efficiency

Financial Discipline
Optimize capital structure
Reduce funding costs

2014: Zero based

budgeting

Sales of additional items

(protections/GPS/child
seat, )

14

Quality Service & Client Focus

Create a Superior Service Culture
A

Aggressive and Intensive Training Program

Superior Customer Satisfaction 1

Average monthly between in 1S16: 1,440 interviews

878

Very Satisfied
11 p.p. vs 1S14

746
452
50%
445

61%

55%

45%

41%
5%

1S15

4%

4%

1S16
1S14

Number - RAC Employees

35%

Number - Training Program

Mystery Shopper Program

Very Satisfied

1S15
Satisfied

1S16
Unsatisfied+Very Unsatisfied

Amaze Service Day is Unidas Trademark

Results affect stores commission, which impacts employees

remuneration

Notes: (1) Based on an internal survey (ISEU).

15

Quality Service & Client Focus

Image Improvement Sever Makeover
Salvador Airport - RaC

Before

After
Galeo Airport - RaC

Before

After
16

Quality Service & Client Focus

Image Improvement Sever Makeover
Braslia Airport - RaC

Before

After

Santo Andr - Used Vehicle Store

Before

After

After
17

Quality Service & Client Focus

New visual identity RaC stores

18

Quality Service & Client Focus

ATM Totem

43th ABAV Edition ( major Brazilian travel and tourism event ) Sep/15
19

Street Furniture

Rio de Janeiro
600 pieces of
furniture
March/April

So Paulo
540 pieces of
furniture
March/April
20

Kicks - Nissan
As result of na important Project in partnership with Nissan, Unidas will be the first car rental Company
in Brazil having the launch Kicks in its fleet

21

Unparalleled Network of Strategic Partnerships

Strategic partnerships are key to driving growth and global brand awareness

Worldwide Network

April/2012: Unidas established a 15 year (+5 optional) franchise

agreement with Enterprise, the largest Rent-a-Car company in the
world by revenues, number of employees and fleet size
Unidas has the right to operate Enterprises brands, Alamo
and National, in Brazil. Currently this franchise agreement
is responsible for about ~7% of Unidas RaC net
revenues

Complementary Business

Jan/2013: Exclusive partnership between Unidas and TAM was

established, creating special car rental terms for customers who
travel with TAM Airlines
In Jun/16, TAM customers are already responsible for
about ~5% of Unidas RaC net revenues
Several partnership opportunities in order to

Enterprise had 2015 revenues of US$13.9 billion

Integration of a worldwide client base, with negligible
CAPEX

Gain market share in the Rent-a-Car market

Intense know-how exchange

Promote the Unidas brand

Further increase convenience for customers

Further increase convenience for customers

22

Section 3

Financial Highlights

Financial Highlights
Rental revenue growth confirm solid operational improvement, translating into better margins
Net Rental Revenues (R$mm)1

516
396

361

228

156

173

205

223

2011

2012

Consolidated EBITDA (R$mm) and EBITDA Margin (%) 2

285

323

301

299

307

280

281

2013

2014

2015

Fleet Management

160

161

139

146

1S15

1S16

26%

(4%)
136

28%

160

29%

90

2011

27%

82

2013

2014
Notes:

2012

2013

2014

49%

345

2015

172

169

1S15

1S16

70%
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
-60%
-70%
-80%
-90%
-100%
-110%
-120%
-130%
-140%
-150%
-160%
-170%
-180%
-190%
-200%
-210%
-220%
-230%
-240%
-250%
-260%
-270%
-280%
-290%
-300%

Net Income (R$mm) and Net Margin (%) 2,3

29%

8.2%

6.9%

7.0%

7.1%

6.9%

33

36

41

43

42

2012

2013

2014

2015

2016 LTM

(18.0) %

90

2010
(65)

2011
2012

49%

175

(15)

2011

333

51%

Rent-a-Car + Franchise

Consolidated EBIT (R$mm) and EBIT Margin (%)2,3

23%

52%

205

167
288

53%

52%

46%

604

581

2015

1S15

1S16

Unidas: estimated effective tax rate ~0.02% 1Q16 (LTM)

(due to fiscal benefits generated from the existing NOL)

(1) Revenues include Best Fleets figures, consolidated as of March 6th, 2013
(2) Margin based on the rental revenues.
(3) Consolidated EBIT and Net Income Adjusted for non-recurring items: IPO expenses cancelled in the first quarter and Deferred Taxes.
Source: Companies releases

24

Financial Highlights (contd)

Unidas presents a healthy balance sheet
Net Debt+ Automakers (OEMs) x Fleet Value

Net Debt (R$mm) and Net Debt to EBITDA1

Covenant Limit < 3.5x
1200

3,8x

3
1000

1,8x

1,7x

2,2x

2,0x

2,0x

2,0x

2,2x

2,1x

2,3x

2,4x

800

1,077

845

0
600
-1

400

200

512

632

718

704

714

738

761

778

809

-3

345

299

-2

-4

-5

2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Net Debt
Net Debt / EBITDA
Covenant Limit
1) Net Debt in 9M13 affected by the issuance of the

3rd

CDI
+2.30%

CDI
+2.15%

30.0
32.4

CDI
+2.94%

71.5

4th Debenture Issue

CDI
+1.80%

CDI
+1.70%

203.5
124.8

355.5

3rd Debenture Issue

203.7

5th Debenture Issue

6th Debenture Issue
7th Debenture Issue

106.1

Total Principal Amortization: R$963.2 mm

2nd Debenture Issue

CDI
+3.27%

110.6
168.1

Unidas Debt Principal Amortization Schedule (R$mm)

Total Debt: R$1,019.5 mm

172,5

2T16

Series of Debentures, used to fund Best Fleet acquisition.

Unidas Debt Profile BRL MM (as of 1Q16)

CDI
+3.40%

2T15

154.2
49.5

210.4

5th Commercial Paper

418.3
266.2

151.8

75.0

6th Commercial Paper

CDI
+1.80%

CDI
+1.81%
2) Including interest and deducting funding costs

Working Capital
Total cost 2Q16: CDI + 2.26%
Marginal cost 2015: CDI + 3.00%

Cash

2016
Amortized until Jun/16

2017

2018

Amortization Jul/16 and Sep/16

2019
Amortization Oct/16 and Nov/16

3) Considering the following amortization from July to December to 2016.

25

Disclaimer

The material that follows is a presentation of operating and financial information of UNIDAS on the day of the presentation.
This is a summary of information that has no intention to be complete and should not be considered by prospective
investors as investment advice . There is no pronouncement or given any warranty as to the accuracy, adequacy or
completeness of the information presented here in, that should not be used as a basis for investment decisions.

Such information and forward-looking statements are only predictions and are not guarantees of future performance .
Investors should be cautioned that such statements and information contained herein are, and will be, as the case may be,
subject to risks, uncertainties and factors relating to the operations and business environment of UNIDAS and its
subsidiaries, pursuant to which the actual results of the companies may differ materially from future results expressed or
implied by the statements and information presented herein.

26