SIMH3 Simpar

Simpar S.A., traded on B3 under the ticker SIMH3, is a holding company whose origins go back to Grupo Julio Simões, founded in 1956. Formally incorporated in 2005 under the name Julio Simões Participações S.A., the company was created as the Simões family’s investment holding, which at the time was the direct controlling shareholder of JSL S.A. In August 2020, after a corporate restructuring that involved the merger of all JSL shares and the partial spin-off of JSL with incorporation into Simpar, the holding took on the role of the group’s publicly traded company, replacing JSL in that position. Following this reorganization, JSL became focused on logistics operating activities, and also listed on B3’s Novo Mercado, while Simpar consolidated itself as the vehicle for control and coordination of the conglomerate’s various businesses.

Simpar operates as a holding company that controls and manages a portfolio of independent companies mainly positioned in the logistics, mobility, automotive services, infrastructure and environmental services sectors. The group’s strategy is based on active capital management and strategic guidance for its subsidiaries, with a focus on financial discipline and return on investments. Simpar serves as the decision-making hub for capital allocation, target setting, performance monitoring, and development of new businesses, without directly participating in the end-service operations. SIMH3 shares, listed on B3, reflect the consolidated performance of this set of companies, which span from road cargo logistics to light and heavy vehicle rental, vehicle sales, infrastructure concessions, environmental services and financial activities.

Simpar’s portfolio is made up of eight main businesses: JSL, Movida, Vamos, Automob, CS Infra, Ciclus Ambiental, CS Brasil and Banco BBC, in addition to smaller entities and overseas vehicles focused on raising funds. In 2024, the company reported consolidated net revenue of approximately R$ 41.1 billion, distributed across segments such as logistics (JSL), light vehicle rental (Movida), truck, machinery and equipment rental (Vamos), and dealership network (Automob), among others. JSL provides road cargo transport services, dedicated logistics, urban distribution, warehousing and chartered passenger transport, serving 16 sectors of the economy with more than 600 recurring customers. Movida operates in light vehicle rental through the rent-a-car (RAC) and fleet management and outsourcing (GTF) segments, with a fleet of more than 260 thousand vehicles and a store network in every Brazilian state. Vamos focuses on long-term rental of trucks, machinery and equipment, with a strong presence in agribusiness and industrial sectors, complemented by maintenance services and divestment of used assets.

Automob, also controlled by Simpar, operates as a large dealership group for light and heavy vehicles, machinery and equipment, selling new and used vehicles, parts, maintenance services, bodywork, painting, armoring, and brokerage of financing and insurance. In December 2024, Automob operated 132 light vehicle stores, 60 heavy vehicle dealerships and 40 machinery and equipment dealerships across Brazil’s five regions, representing a broad portfolio of domestic and foreign brands. Other subsidiaries reinforce the group’s diversification: CS Infra manages infrastructure concessions such as ports, highways, urban passenger transport in BRT format and on-street parking; CS Brasil provides fleet management and outsourcing services to the public sector, municipal passenger transport and urban cleaning; Ciclus Ambiental operates in environmental services, running landfills, waste recovery, biogas and energy generation and sales, as well as carbon credits; and Banco BBC offers financing, leasing, direct-to-consumer credit, digital accounts and other financial services focused on the group’s ecosystem.

From a revenue generation standpoint, in 2024 Movida accounted for around 33% of Simpar’s consolidated net revenue, followed by Automob with approximately 30%, JSL with 22%, and Vamos with 11%. The other businesses, including CS Infra, CS Brasil, Ciclus Ambiental and Banco BBC, contributed smaller, albeit relevant, shares to the portfolio mix and sector risk diversification. In terms of operating income before financial income and expenses and taxes, Movida and Vamos had significant shares, with approximately 39% and 38% of the total, respectively, while JSL and Automob complemented consolidated returns. This distribution underscores the diversified nature of the conglomerate and the combined importance of light vehicle rental, heavy asset rental, integrated logistics and automotive retail within Simpar’s structure.

The group controlled by Simpar has a wide geographic footprint, with strong coverage across Brazil and international logistics operations. JSL maintains more than 350 branches distributed across all Brazilian states and operational bases in eight countries besides Brazil: Chile, Argentina, Uruguay, Bolivia, Paraguay, South Africa, Ghana and Peru, operating in road cargo transport, dedicated logistics, urban distribution and warehousing. Movida is present in every Brazilian state, with 259 vehicle rental stores, many of them located at airports, plus 89 used-car sales outlets. Vamos has a national service network supported by around 6,000 authorized repair shops, as well as its own locations for divesting used assets under the Vamos Seminovos brand and an extensive network of commercial partners. Automob, in turn, operates a dealership network across the country’s five regions, covering various state capitals and major economic hubs.

The activities of Simpar’s subsidiaries take place in environments with different degrees of government regulation. JSL, CS Brasil and CS Infra operate in transport and infrastructure segments subject to oversight by bodies such as the Ministry of Transport, the Ministry of Ports and Airports, the National Land Transport Agency (ANTT) and the National Waterway Transport Agency (ANTAQ), in addition to state and municipal regulatory frameworks. Road cargo transportation, for example, depends on registration with the National Registry of Road Cargo Carriers (RNTRC) with ANTT and follows specific rules for contracting independent truckers and transport companies, as well as enforcement and safety standards applied by the Federal Highway Police and traffic authorities coordinated by the National Traffic Council (CONTRAN). In the financial sphere, Banco BBC operates under the regulatory framework of the Brazilian banking system, with prudential and supervisory requirements typical of the sector. Ciclus Ambiental’s activities are subject to licensing and oversight by environmental agencies, given the nature of waste treatment and disposal, biogas generation and carbon credits.

From an ESG (environmental, social and governance) perspective, several Simpar subsidiaries have shares listed on B3’s Novo Mercado and are part of the Corporate Sustainability Index (ISE), such as JSL, Movida and Vamos, which entails additional commitments in governance, transparency and socio-environmental responsibility. Ciclus Ambiental, focused on waste management, energy recovery through biogas and trading of carbon credits, represents a direct vector of activity in the circular economy and emissions mitigation. Simpar’s holding structure seeks to maintain a standardized management model, with clear targets for each business, a shared culture, and aligned governance practices across the group’s companies. The combination of infrastructure, logistics, mobility, environmental services and financial businesses, all under Simpar’s centralized coordination, means SIMH3 shares provide exposure to a diversified portfolio of sectors in Brazil’s real economy, with different cycles and regulatory and operational risk profiles.