MOVI3 Movida

Movida Participações S.A. is a publicly traded Brazilian company in the vehicle rental sector, with common shares listed on B3 under the ticker MOVI3. The company is part of the SIMPAR Group, which traces its origins to 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, rent a car and fleet management and outsourcing activities were consolidated 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) carried out on February 8, 2017, when it raised approximately R$ 600 million, most of which, around 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 premium-brand vehicles 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 mainly 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 over 12 months. At the end of 2024, the company operated a total fleet of more than 268 thousand vehicles, divided between about 122 thousand units in RAC and 147 thousand units in GTF. The third line of activity, Seminovos Movida, handles the decommissioning and sale of used vehicles after the rental period, allowing for the recurring renewal of the fleet and capture of residual value through its own resale outlets 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 company-owned locations in Brazil and Portugal, many of them located at 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 quick renewal, low average age, and controlled mileage in order to preserve future resale value. The company uses both physical and digital distribution channels, including stores, a specialized call center, a self-service website, a mobile app, and 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 from 12 to 36 months, offering complete solutions that include sizing the fleet according to each client’s usage profile, vehicle acquisition and customization, preventive and corrective maintenance, documentation management (such as vehicle tax 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 line with the contracts, with a focus on meeting the specific needs of corporate clients, public entities, and state-owned companies. The incorporation of operations such as CS Frotas helped expand its presence in contracts with the public sector and in special vehicles, increasing the diversification of its client base.

The Seminovos Movida operation closes the economic cycle of the assets, enabling the company to sell vehicles used in both RAC and GTF. The strategy involves choosing between retail channels, through 89 company-owned Seminovos locations at the end of 2024, and wholesale channels, including large dealership groups and small dealers. The choice of channel and timing of sale considers 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 vehicle rental business.

Movida’s operations are concentrated mainly in the Brazilian market, with a presence in all regions and strong capillarity in major urban centers and airports, as well as an operation in Portugal through Drive on Holidays, acquired in 2022, which added a fleet of around 3.3 thousand vehicles and reinforced 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 through 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 lengthen the debt maturity profile and strengthen liquidity, which was reflected in rating agency assessments, including a AAA rating on the local scale by Fitch.

On the regulatory front, Movida’s main activities do not depend on specific sector concessions, but are subject to regulations common to service companies in Brazil, especially with regard to tax registrations, municipal operating permits, and Fire Department inspection certificates for store operations. Airport units operate under concession contracts for the use of public areas with Infraero and other airport authorities. For contracts with public agencies, the company takes part in bidding processes under Brazilian public procurement law, subject to competition rules and oversight by audit courts and the Public Prosecutor’s Office.

With respect to environmental, social, and governance practices, Movida has developed initiatives related to sustainability and climate impact management. The company has been part of the B3 Corporate Sustainability Index (ISE) and the B3 Carbon Efficient Index (ICO2 B3) for several consecutive years, reflecting the incorporation of efficiency, governance, and emissions criteria into 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 alliances with micromobility businesses such as EMoving indicate a pursuit of lower-impact mobility solutions within its vehicle rental service portfolio.