MOVI3

Movida Participações S.A. is a Brazilian publicly held company in the car rental sector, with common shares traded on B3 under the ticker MOVI3. The company is part of the SIMPAR Group, which originated from JSL, founded in 1969 in the cargo transportation segment and which, over the following decades, expanded its activities into integrated logistics, employee transportation, and fleet outsourcing. The specific entry into the light vehicle rental business took place in 2013, when then JSL S.A. completed the acquisition of Movida Locação de Veículos S.A. and APTA Veículos e Representações Ltda., establishing the operational base to operate in rent a car and fleet management with a focus on scale and customized services. In 2014, there was a consolidation of rent a car, fleet management and outsourcing activities under Movida, with an initial fleet of around 36 thousand light vehicles.

Movida’s trajectory in the capital markets was marked by its initial public offering (IPO) on February 8, 2017, when it raised approximately R$ 600 million, of which most, about R$ 511.9 million, went into the company’s own cash to support organic growth, strengthen liquidity, and expand the fleet and service locations. Also in 2017, the company began strategic moves to operate in higher value-added niches, such as the acquisition of BVHD Locação de Veículos e Serviços (Fleet Services), specialized in vehicles of premium brands associated with the Eurobike dealership network, and the launch of Movida Mensal Flex, a car subscription model. In 2018, internal corporate reorganization included the merger of Movida Gestão e Terceirização de Frotas S.A. into Movida Participações S.A., simplifying the group’s structure and seeking administrative efficiency gains.

Movida’s business model is structured into two main service segments and a complementary asset resale line. The core segments are vehicle rentals (rent a car, or RAC), focused on daily and monthly rentals primarily for individuals and small and medium-sized enterprises, and fleet management and outsourcing (GTF), focused on long-term contracts with corporate clients and also individuals in contracts longer than 12 months. At the end of 2024, the company operated a total fleet of more than 268 thousand vehicles, distributed among about 122 thousand units in RAC and 147 thousand units in GTF. The third line of business, Seminovos Movida, handles the divestment and sale of used vehicles after the rental period, allowing for recurring fleet renewal and the capture of residual value through its own resale outlets spread across the country.

In the rent a car segment, Movida provides light vehicle rental services under short and medium-term contracts, serving individuals, companies, insurance companies, and ride-hailing app drivers. Services are offered at 259 own service locations in Brazil and Portugal, many of them located in airports, with 96 locations inside the main Brazilian terminals at the end of 2024. The RAC fleet consists of vehicles from different brands and categories and is managed with a strong focus on rapid renewal, low average age, and controlled mileage, in order to preserve future resale value. The company uses physical and digital distribution channels, including stores, a specialized call center, a self-service website, a mobile app, and customer service via digital channels and WhatsApp, seeking to standardize processes and support operational scale.

In fleet management and outsourcing, Movida structures contracts that generally range between 12 and 36 months, offering complete solutions that include sizing the fleet appropriate to each client’s usage profile, vehicle acquisition and customization, preventive and corrective maintenance, management of documentation (such as IPVA and fines), insurance, tire replacement, provision of replacement vehicles, and online management reports. On December 31, 2024, the GTF fleet totaled approximately 146.5 thousand vehicles, acquired in conjunction with the contracts, with a focus on meeting the specific needs of corporate clients, public companies, and mixed-capital companies. The incorporation of operations such as CS Frotas helped expand its presence in contracts with the public sector and in special-purpose vehicles, increasing diversification of the client base.

The Seminovos Movida operation closes the economic cycle of the assets, allowing the company to sell the vehicles used both in RAC and GTF. The strategy involves choosing between retail channels, through 89 own Seminovos outlets at the end of 2024, and wholesale channels, including large dealership groups and small resellers. The choice of channel and timing of sale takes into account factors such as the vehicle’s condition, mileage, associated operating costs, and expected margin. In 2024, the Seminovos line accounted for more than 50% of consolidated net revenue, reflecting the relevance of residual value in the economic equation of the large-scale car rental business.

Movida’s operations are concentrated mainly in the Brazilian market, with a presence in all regions and strong reach in major urban centers and airports, in addition to an operation in Portugal through Drive on Holidays, acquired in 2022, which added a fleet of about 3.3 thousand vehicles and strengthened its presence in European tourist destinations. On the corporate and financial front, the company expanded its access to international capital markets with the issuance of bonds via Movida Europe, based in Luxembourg, and listed Level 1 American Depositary Receipts (ADRs) in 2019, broadening its potential base of international investors. Credit lines such as the one approved by IDB Invest in 2022 helped extend the debt maturity profile and strengthen liquidity, which was reflected in ratings from credit agencies, including a AAA local scale rating by Fitch.

In regulatory terms, Movida’s main activities do not depend on specific sector concessions but are subject to the general legislation applicable to service companies in Brazil, especially regarding tax registrations, municipal operating permits, and fire department inspection certificates for store operations. Units located in airports operate under concession contracts for the use of public areas with Infraero and other airport authorities. For contracts with government entities, the company participates in public bidding processes under Brazilian public procurement law, subject to competition rules and oversight by audit courts and the Public Prosecutor’s Office.

Regarding environmental, social, and governance practices, Movida has developed initiatives related to sustainability and climate impact management. The company has for several consecutive years been part of the B3 Corporate Sustainability Index (ISE) portfolio and the Carbon Efficient Index (ICO2 B3), reflecting the incorporation of economic efficiency, governance, and emissions criteria into its management. The company reports assessments on specialized platforms such as Ecovadis and CDP, in addition to corporate sustainability ratings by global entities such as MSCI and S&P Global. In its operations, initiatives such as offering rentals with emissions offset (Carbon Free) and partnerships with micromobility businesses such as EMoving indicate a search for lower environmental impact mobility solutions within its vehicle rental service portfolio.