4Q17 and 2017 Earnings Release Operating and Financial Highlights

Transcription

1 Mogi das Cruzes, March 22, 2018 JSL (B3: JSLG3 and Level 1 ADR: JSLGY), the Company with the broadest portfolio of logistics services in Brazil and the leader in terms of net revenue, announces its 4Q17 results, which include JSL Logística, and, separately, the results of Movida, JSL Concessionárias and JSL Leasing, which together comprise the result of JSL Consolidated. The consolidated financial statements are presented in accordance with the International Financial Reporting Standards (IFRS) and also in accordance with the practices. The comparisons refer to revised data for 4Q17, 3Q17 and 4Q16, except where indicated. Index Management Comments JSL Logística Movida JSL Concessionárias JSL Leasing Capital Structure EBITDA, Cash Flow and ROIC New Corporate Structure Capital Market Glossary Exhibits Conference Call and Webcast March 26, :00 a.m. (Brasília) with simultaneous interpretation into English Brazil: +55 (11) Other countries: +1 (646) Access code: JSL Webcast: Investor Relations Phone: +55 (11) (11) ri@jsl.com.br Financial Statements JSL S.A. 4Q17 and 2017 Earnings Release Operating and Financial Highlights Consolidated Net Revenue of R$1.8 billion in 4Q17 (+4.9% YoY), totaling R$7.3 billion in 2017 (+11.2% YoY); Consolidated Net Revenue from Services of R$1.4 billion in 4Q17 (+5.3% YoY), totaling R$5.4 billion in 2017 (+5.3% YoY); Consolidated Net Revenue from Sale of Assets of R$394.3 million in 4Q17 (+3.1% YoY), totaling R$1.8 billion in 2017 (+33.7% YoY); EBITDA of R$305.9 million and EBITDA Margin of 22.1% in 4Q17, totaling R$1.2 billion in 2017 and EBITDA Margin of 22.1%; considering the 2017 proforma figures with the acquisition of Borgato, EBITDA totaled R$1.3 billion and EBITDA Margin totaled 23.1%; Net Income of R$8.6 million in 4Q17 and R$16.7 million in 2017; considering the proforma numbers with the acquisition of Borgato, Net Income totaled R$23.4 million in 2017; Consolidated Net CAPEX of R$193 million in 4Q17 and R$850 million in 2017; Movida IPO in February 2017 with funding of R$600 million, strengthening the capital structure; First JSL international bond issue, in the amount of US$325 million and a 7-year term, with an additional issue of US$300 million in January/2018, extending the debt profile to 4.4 years and diversifying funding; Acquisition of Sociedades Borgato, consolidating JSL's leading position as the largest company in Brazil in the market for the rental and commercialization of vehicles and heavy machinery; Announcement on December 2017, JSL's new corporate structure, which will allow for greater autonomy for managers and the continuity of our strategic values and goals. 4Q16 4Q17 JSL - Consolidated 2017¹ Proforma Gross Revenue 1, , % 7, , % 8,487.9 Net Revenue 1, , % 6, , % 7,525.3 Logistics 1, , % 4, , % 4,396.3 Movida % 1, , % 2,474.6 Dealerships % % Leasing 9.3 (7.5) % 24.0 Intercompany Elimination (54.0) (43.7) - (195.7) (198.5) - (198.5) Net Revenue from Services 1, , % 5, , % 5,663.8 Net Revenue of Asset Sales % 1, , % 1,861.5 EBITDA % 1, , % 1,308.6 Margin * 14.4% 22.1% +7.7 p.p. 20.5% 22.6% +2.1 p.p. 23.1% EBITDA-A % 2, , % 3,089.6 Margin 32.5% 38.5% +6.0 p.p. 36.0% 40.9% +4.9 p.p. 41.1% Net Result (150.4) (183.2) Margin -8.9% 0.5% +9.4 p.p. -2.8% 0.2% +3.0 p.p. 0.3% * Calculated on net revenue from services ¹ Includes the results of Borgato and Fleet Services DISCLAIMER: As of January 1, 2017, the Company began to account for PIS and COFINS credits on acquisition of inputs and depreciation charges as credits that reduce the costs of products and services sold, to better reflect the nature of such credits and expenses. The amounts corresponding to these credits referring to past periods were reclassified for purposes of comparison.

2 I. Management Comments JSL Consolidated The year of 2017 was marked by a focus in execution and by the conclusion of the group's new corporate organization. In the mist of an recovering economy we recorded Consolidated Gross Revenue of R$8.2 billion, corresponding to growth of 11% when compared to The result of our diversification strategy services, customers and sectors of the economy was once again confirmed by the resilience of our revenues and margin improvement during a challenging year. We are more optimistic about 2018, given the expectation for economic recovery, which first signs we already start to see given the improvement of all our companies at the end of For 2018 we believe in the continuation of this improvement. In 4Q17, our Consolidated Net Revenue totaled R$1.8 billion, up 4.9% YoY, In 2017, our Consolidated Net Revenue totaled R$7.3 billion, up 11.2% YoY, which proves the Company s strength, and our ability to execute. Consolidated EBITDA totaled R$305.9 million in 4Q17 (+62.3% YoY), with EBITDA Margin of 22.1% (+7.7 p.p. YoY). In 2017, EBITDA totaled R$1.2 billion (+16.0% YoY), with EBITDA Margin of 22.6% (+2.1 p.p. YoY). JSL Logística: EBITDA of R$208.7 million (+ 52.7% YoY), with EBITDA Margin of 22.0% (+7.5 p.p. YoY) in 4Q17. In 2017, EBITDA totaled R$878.6 million (+10.7% YoY), with an EBITDA margin of 23.3% (+2.0 p.p. YoY). This improvement in EBITDA is mainly explained by the negative impact of extraordinary events, which totaled R$57.4 million in In addition, in 2017 we were able to see the benefit from the continued management of administrative expenses, as well as of the beginning of the economic recovery and the subsequent impact in Logistics results. Movida: EBITDA of R$85.5 million (+ 41.0% YoY), with EBITDA Margin of 31.2% (+3.1 p.p. YoY) in 4Q17. In 2017, EBITDA totaled R$326.3 million (+21.2% YoY), with an EBITDA margin of 32.1% (-1.8 p.p YoY). In the annual comparison, Movida delivered a net revenue growth of 34.8%, due to a 37.7% increase in RAC daily rate and an occupancy rate of 74%. In addition, the Company kept its focus on execution and the evolution of operational processes, whose first results began to appear in the second half of Net Financial Expenses totaled R$166.9 million in 4Q17 against R$230.1 million in 4Q16. In 2017, net financial expenses totaled R$670.5 million, against R$748.3 million in The YoY decrease reflects the impact of extraordinary financial expenses in 4Q16 in the amount of R$39.9 million corresponding to the price adjustment of the acquired companies as well as the drop in the SELIC rate and consequent reduction in the average cost of gross debt during We highlight the liability management and the rearrangement of the debt profile in 2017, mainly aimed at increasing its average term and the utilization of new funding sources. With this in mind, JSL finalized in July the issuance of an inaugural bond in the international capital market, with a volume of US$325 million and maturity of 7 years, a significant evolution when compared to the average term obtained in the domestic market. In January 2018, the same program was reopened and JSL raised an additional US$300 million, extending the average maturity of its consolidated net debt to 4.4 years. JSL's liability management, in addition to the Company's financial discipline will continuously improve the Company's debt profile and capital structure in the coming periods. Consolidated Net Income totaled R$8.6 million in 4Q17 and R$16.7 million in 2017, sustained by JSL Logística s improved operating performance, as well as lower net financial expenses in the period. 2

3 II. JSL Logística Financial Performance Gross Revenue In 4Q17, total gross revenue amounted to R$1.3 billion (+2.1% YoY), of which R$1.2 billion (+6.1% YoY) from services, and R$81.5 million (-33.9% YoY) from sale of assets. In 2017, total gross revenue was R$4.9 billion (+3.6% YoY), as a result of gross revenue from services of R$4.5 billion (+2.3% YoY) and from sale of assets of R$376.5 million (+20.8% YoY). We highlight the volume increase especially at the end of the year in sectors such as Pulp and Paper, Automotive and Chemicals, which had a positive impact in gross revenue from services. JSL - Logística Gross Revenue Gross Revenue 1, , , % 0.6% 4, , % Revenue from Services 1, , , % 1.1% 4, , % Revenue from Sale of Assets % -6.0% % Breakdown of Gross Revenue from Services by Business Line Others 1.4% Dedicated Services 56.2% Others 1.4% Dedicated Services 57.9% General Cargo 6.6% 2016 General Cargo % Passenger Transportation 11.8% Management and Outsourcing 24.1% Passenger Transportation 10.0% Management and Outsourcing 22.5% Consumer Goods 4.6% Breakdown of Gross Revenue from Services by Economic Sector Services 2.7% Capital Goods 1.2% Consumer Goods 4.1% Services 2.6% Capital Goods 1.5% Chemical 6.9% Pulp and Paper 13.1% Chemical 8.2% Pulp and Paper 15.6% Passenger Transportation 8.4% Agribusiness 9.3% Others 9.3% 2016 Food Industry 10.2% Steel and Mining 11.0% Automotive 11.5% Public 12.1% Passenger Transportation 7.5% Agribusiness 8.6% Others 8.7% Food Industry 8.7% 2017 Steel and Mining 9.5% Automotive 13.4% Public 11.4% 3

4 RSC Revenue from Same Contracts The Gross Revenue from Same Contracts (RSC) totaled R$1.1 billion in 4Q17 (+3.3% YoY), with a notable increase in General Cargo (+24.4% YoY), mainly due to the higher volumes in sectors such as the Automotive and Food Industry, mostly at the end of the year. In 2017, the RSC totaled R$3.9 billion (+4.9% YoY), while the IPCA registered +2.95% YoY in the same period. We highlight the increase of 5.2% YoY in Dedicated Services and +20.7% YoY in the General Cargo activity, driven by volume increases in the Pulp and Paper, Automotive and Chemicals sectors. RSC 4Q16 4Q17 4Q16x4Q x2017 Gross Revenue from Services 1, , % 3, , % Dedicated Services % 2, , % Management and Outsourcing (Vehic./Mach./Equip.)* % % Passenger Transportation % % General Cargo transportation % % Others % % * With adition of services / public / heavy Net Revenue In 4Q17, JSL Logística recorded a Net Revenue of R$1.0 billion (-2.4% YoY), due to the decrease in revenue from the sale of assets (-30.4% YoY), partially offset by the increase in net revenue from services (+1.0% YoY). In 2017, Net Revenue totaled R$4.1 billion (+2.7% YoY), as a result of the growth of net revenues from services (+1.1% YoY) and from sale of assets (+22.1% YoY). JSL - Logística Net Revenue Net Revenue 1, , , % -2.8% 4, , % Net Revenue from Services % -2.7% 3, , % Net Revenue from Sale of Assets % -4.1% % Costs In 4Q17, costs of services totaled R$784.0 million (-0.9% YoY), while net revenue from services grew in the same period (1.0% YoY). The largest increase came from Contractors and Third Parties (+23.8% YoY), as well as with Parts, Tires and Maintenance (+3.7% YoY). In 2017, service costs totaled R$3.1 billion, an increase of 1.7% YoY, compared to net service revenue growth of 1.1% in the same period. The increase in Contractors and Third Parties (+24.9% YoY) was the highest, given the greater utilization of asset light contracts, as well as Parts, Tires and Maintenance (+4.7% YoY). JSL - Logística Costs Cost of Services (790.8) (794.7) (784.0) -0.9% -1.3% (3,039.6) (3,092.7) 1.7% Personnel (260.7) (257.7) (264.3) 1.4% 2.6% (1,026.6) (1,011.3) -1.5% Independent contractors / third parties (204.3) (233.7) (253.0) 23.8% 8.3% (721.4) (900.9) 24.9% Fuel and lubricants (56.5) (55.7) (56.9) 0.7% 2.2% (243.9) (221.2) -9.3% Parts / tires / maintenance (73.7) (75.1) (76.4) 3.7% 1.7% (284.4) (297.9) 4.7% Depreciation (114.9) (107.8) (106.0) -7.7% -1.7% (428.9) (424.0) -1.1% Others (80.7) (64.7) (27.5) -65.9% -57.5% (334.4) (237.4) -29.0% Costs of Sales of Assets (108.8) (82.8) (80.3) -26.2% -3.0% (293.7) (363.8) 23.9% Sale of Assets used to provide services (108.8) (82.8) (80.3) -26.2% -3.0% (293.7) (363.8) 23.9% Total (899.6) (877.5) (864.3) -3.9% -1.5% (3,333.3) (3,456.5) 3.7% Total (as % of Total Net Revenue) 85.3% 82.8% 84.0% -1.3 p.p p.p. 82.8% 83.6% 0.8 p.p. 4

5 Gross Profit In 4Q17, gross profit totaled R$165.2 million (+6.3% YoY), while the gross margin stood at 16.0%, up 1.3 p.p. YoY. In 2017, gross profit totaled R$676.9 million (-2.1% YoY), while the gross margin was 16.4%, down 0.8 p.p. YoY. Note that the decrease in gross margin is mainly explained by the increase in costs with Contractors and Third Parties and the greater use of asset light contracts, as previously explained. JSL - Logística Gross Profit Gross Profit from Services % -8.8% % Gross Margin from Services (% of Net Revenue from Services) 15.9% 18.6% 17.5% +1.6 p.p p.p. 18.4% 17.9% -0.5 p.p. Gross Profit from Sale of Assets (0.5) % Gross Margin from Sale of Assets (% of Net Revenue from Sale of Assets) 5.0% 0.4% -0.6% -5.6 p.p p.p. 1.7% 0.4% -1.3 p.p. Total Gross Profit % -9.2% % Gross Margin (% of Total Net Revenue) 14.7% 17.2% 16.0% +1.3 p.p p.p. 17.2% 16.4% -0.8 p.p. Operating Expenses before the Financial Result In 4Q17, operating expenses totaled R$67.0 million, representing 7.0% of net revenue from services (-7.8 p.p. YoY). We highlight the decline in personnel expenses (-3.7% YoY) and in services rendered (-35.3% YoY), contributing to increase efficiency in the period. In 2017, operating expenses totaled R$241.2 million, accounting for 6.4% of net service revenue (-2.9 p.p. YoY). We highlight the decrease in personnel expenses (-7.6% YoY) and services rendered (-14.9% YoY). We highlight the YoY improvement in the Other Operating Revenues (Expenses) line, which was negatively impacted by extraordinary events totaling R$56.3 million in 4Q16 and R$57.4 million in 2016, mainly related to the price adjustments of acquired companies and write-off of goodwill. JSL - Logística Operating Expenses before Financial Results Administrative and Sales Expenses (74.2) (60.5) (72.4) -2.4% 19.7% (268.6) (252.2) -6.1% Personnel (27.2) (23.5) (26.2) -3.7% 11.5% (106.6) (98.5) -7.6% Services Rendered (10.2) (11.5) (6.6) -35.3% -42.6% (48.3) (41.1) -14.9% Communication, advertising and marketing (0.9) (1.1) (0.7) -22.2% -36.4% (11.0) (4.1) -62.7% Third-party properties rental (4.9) (5.0) (5.0) 2.0% 0.0% (16.1) (20.2) 25.5% Depreciation (5.5) (4.6) (4.4) -20.0% -4.3% (21.5) (18.9) -12.1% Others (25.6) (14.8) (29.6) 15.6% 100.0% (65.2) (69.4) 6.4% Tax Expenses (3.0) (3.0) (1.4) -53.3% -53.3% (6.7) (6.7) 0.0% Other Operating Revenues (Expenses) (61.8) (4.9) (72.6) Total (139.0) (68.5) (67.0) -51.8% -2.2% (347.8) (241.2) -30.6% Total (as % of Total Net Revenue from services) 14.8% 7.0% 7.0% -7.8 p.p p.p. 9.3% 6.4% -2.9 p.p. 5

6 EBIT, EBITDA and EBITDA-A In 4Q17, EBITDA totaled R$208.7 million (+52.7% YoY), while the EBITDA margin stood at 22.0%, 7.5 p.p. above the 14.5% level reached in 4Q16. In 2017, EBITDA totaled R$878.6 million (+10.7% YoY), while EBITDA margin totaled 23.3%, showing a growth of 2.0 p.p. YoY. This improvement in EBITDA is explained by the beginning of the economic recovery in some sectors and consequently in the increase in the volume of our clients, as well as the continuous management of our administrative expenses, and by the aforementioned extraordinary expenses, which impacted 4Q16 and JSL - Logística EBIT, EBITDA and EBITDA-A EBIT % % Margin * 1.7% 11.6% 10.3% +8.6 p.p p.p. 9.2% 11.6% +2.4 p.p. EBITDA % -7.6% % Margin * 14.5% 23.1% 22.0% +7.5 p.p p.p. 21.3% 23.3% +2.0 p.p. EBITDA-A % -6.4% 1, , % Margin 23.3% 29.1% 28.1% +4.8 p.p p.p. 27.0% 30.1% +3.1 p.p. * Calculated on net revenue from services Investments In 4Q17, the total investments in Logística amounted to R$130.2 million (-15.5% YoY), 80.1% of which allocated to the expansion of new businesses. The investments were allocated to trucks (52.2%), light vehicles (38.2%), machinery and equipment (4.9%), buses (1.8%) and other (2.9%). In 2017, investments in Logística totaled R$567.7 million (-19.2% YoY), of which 73.5% was destined to the expansion of new businesses. The investments were distributed among trucks (38.4%), light vehicles (37.2%), machinery and equipment (19.3%), buses (2.9%) and others (2.2%). We highlight the reduction in net investments from R$391.0 million in 2016 to R$191.2 million in The decline in net investments is explained by the increase in revenue from sale of assets (+ 20.8% YoY) due to the increased use of third parties, as well as due to the Company's higher investment discipline in the period. JSL - Logística Capex Gross capex by nature % 36.5% % Expansion % 56.6% % Maintenance % -9.8% % Others Gross capex by type % 36.5% % Trucks % % Machinery and Equipment % Light Vehicles % 7.1% % Bus % -11.5% % Others % 22.6% % Usual sale of assets (123.3) (86.7) (81.5) -33.9% -6.0% (311.6) (376.5) 20.8% Maintenance # (83.5) (60.7) (65.6) -21.4% 8.1% (247.7) (295.8) 19.4% End of contract # (30.0) (19.1) (8.0) -73.3% -58.1% (41.5) (55.2) 33.0% Exchange of operational scope # (2.6) (7.3) (6.8) 161.5% -6.8% (5.3) (19.6) - Total net capex % % # Does not consider cancellations and sales return 6

7 III. Movida Participações S.A. In 4Q17, Movida's net revenue was R$586.7 million, up 22.9% YoY. EBIT totaled R$65.8 million (+53.0% YoY), with an EBIT margin of 24.0% (+4.1 p.p. YoY). In 2017, Movida posted net revenue of R$2.5 billion, an increase of 34.8% YoY. EBIT totaled R$252.1 million (+31.8% YoY), reaching an EBIT margin of 24.8% (+0.7 p.p. YoY). The margin expansion is mainly related to Fleet Management and Outsourcing performance; however, the result is still impacted by the number of stolen and damaged cars in At the end of 4Q17, Movida s fleet reached 75,860 vehicles, 183 RAC stores, and 58 Used-vehicle stores. Movida Financial Information Gross Revenue % -12.4% 1, , % Net Revenue % -13.2% 1, , % Net Revenue from Services % 6.7% , % Net Revenue from Sale of Assets % -25.4% 1, , % EBIT % 0.6% % Margin on net revenue from services 19.9% 25.4% 24.0% +4.1 p.p p.p. 24.1% 24.8% +0.7 p.p. EBITDA % 1.5% % Margin on net revenue from services 28.1% 32.7% 31.2% +3.1 p.p p.p. 33.9% 32.1% -1.8 p.p. Net Income % % Margin on net revenue from services 0.5% 5.5% 7.2% +6.7 p.p p.p. 4.0% 6.5% +2.5 p.p. In 4Q17, total investments in Movida reached R$454.0 million (-20.3% YoY), 99.1% of which allocated to the purchase of vehicles. The investments in fleet were divided in expansion (16.6%) and renewal (83.4%). Net investments totaled R$141.1 million in 4Q17, versus R$307.2 million in 4Q16. In 2017, total investments in Movida totaled R$2.1 billion (+20.1% YoY), of which 99.3% were used to purchase vehicles. Fleet investments were distributed between expansion (24.4%) and renewal (75.6%). Net investment totaled R$636.8 million in 2017, compared to R$701.2 million in The reduction is due to the lower investments in expansion and the focus on the Fleet Management and Outsourcing, as well as the 39.8% growth in revenue from the sales of assets. Movida Capex Fleet % -23.2% 1, , % RAC % -21.5% 1, , % Expansion % % Maintenance % -23.7% , % GTF % -28.6% % Expansion % -47.3% % Maintenance % 88.8% % Stores % % New % % Former % 140.0% % Others % -7.1% % Total Gross Capex % -23.0% 1, , % Sale of Assets (262.3) (419.3) (312.9) 19.3% -25.4% (1,038.8) (1,452.4) 39.8% Total Net Capex % -17.0% % For more detailed information, please go to 7

8 IV. JSL Concessionárias de Veículos In 4Q17, JSL Concessionárias recorded total net revenue of R$212.0 million (+2.3% YoY), fueled by the increase in net revenue from heavy vehicles (+30.5% YoY). EBITDA totaled R$15.5 million, versus a negative EBITDA of R$13.8 million in 4Q16. In 2017, Concessionárias had a total net revenue of R$828.9 million (-0.8% YoY), impacted by the lower volume of vehicles sold as a result of the macroeconomic scenario, which showed a gradual improvement throughout the year. EBITDA totaled R$20.7 million, compared to a negative EBITDA of R$9.4 million in We highlight that the EBITDA was positively impacted by the effect of extemporary ICMS credits recorded in Other Operating Revenues and Expenses, which totaled R$16.7 million in 4Q17. Dealerships Financial Information Total Net Revenue % -3.4% % Light Vehicles % -1.5% % Heavy Vehicles % -10.0% % Direct Sales % -15.9% % F&I % 18.4% % Post Sales % -3.8% % Total Volume (units) 6,989 7,043 5, % -16.9% 29,704 36, % Light Vehicles 3,354 3,410 3, % -5.1% 13,620 13, % Heavy Vehicles % -9.4% % Direct Sales Light Vehicles 3,361 3,218 1, % -38.5% 14,523 21, % Direct Sales Heavy Vehicles % % Gross Profit % -7.6% % Margin 16.2% 17.5% 16.7% +0.5 p.p p.p. 18.6% 18.1% -0.5 p.p. EBIT (29.1) (1.2) (34.1) Margin -14.1% -0.6% 6.3% p.p p.p. -4.1% 1.5% +5.6 p.p. EBITDA (13.8) (9.4) Margin -6.6% 0.4% 7.3% p.p p.p. -1.1% 2.5% +3.6 p.p. V. Leasing As of the 3Q17, the Company began to consolidate the financial information of JSL Leasing in accordance with the international accounting standards, which differ from the previously used standards of BACEN. Therefore, for better analysis and comparison of the performance, we highlight the change in Gross Profit and EBIT. In 4Q17, JSL Leasing s Gross Profit was R$4.9 million, compared to R$2.2 million in 4Q16. EBIT totaled R$2.2 million in 4Q17. We highlight the increase in the number of operations, which increased from 84 in 4Q16 to 437 in 4Q17. In 2017, JSL Leasing's Gross Profit was R$14.5 million, compared to R$7.0 million in EBIT totaled R$4.2 million in 2017, compared with R$1.7 million in The number of operations grew from 569 in 2016 to 1,672 in JSL Leasing continues to offer financial alternatives to facilitate access to semi-new trucks, buses, automobiles, machinery and equipment, benefiting from a gradual recovery of the sector. JSL - Leasing Results Total Gross Revenue (7.3) % Deductions from Revenue (0.2) (0.2) (0.2) - - (0.3) (0.3) - Net Revenue (7.5) % Total of Costs (7.1) (2.5) (21.2) (9.5) -55.2% Gross Profit % 25.6% % Administrative and Sales Expenses (2.1) (2.3) (2.6) 23.8% 13.0% (8.6) (10.0) 16.3% Tax Expenses (0.0) (0.1) (0.1) - 0.0% (0.1) (0.2) 100.0% Other Operating Revenues (Expenses) (0.0) (0.0) (0.0) - - (0.0) (0.1) - EBIT (0.0) % (1.7) Operations (Qty.) % 569 1, % 8

9 VI. Capital Structure - JSL Consolidated We highlight the liability management and the change in the debt profile during 2017, mainly aimed at increasing average maturities and the raising new funding sources. With this in mind, JSL finalized in July the issuance of an inaugural bond in the international capital market, with a volume of US$325 million and maturity of 7 years, a significant evolution when compared to the average term obtained in the domestic market. In January 2018, the same program was reopened and JSL raised an additional US$300 million, extending the average maturity of its consolidated net debt to 4.4 years. We highlight that JSL's liability management in addition to the Company's financial discipline will continue to improve the Company's debt profile and capital structure in the coming periods. Considering the cash at the end of 4Q17 (proforma with the bond retap in January 2018), JSL has enough funds to meet the needs related to debt maturities until mid-2019, with the benefit of having a more diluted and extended debt amortization schedule. Gross Debt Amortization Schedule ¹ Short-Term Long-Term 977 Retap Bond Gross Debt Confirming Payables 1, ,897 1,897 1,833 1,397 Liquidity 1Q18 Fund Raising 1,536 1, and 2025 ¹ Disregards the amount of R$542.2 million resulting from the structure for entry of the Bond issuance funds, which equally impacts cash and gross debt Net debt totaled R$5.7 billion in December 2017 (this amount includes the net debt of R$216.6 million of Borgato on December 21, 2017), +7.5% over September 2017, and +8.8% over December The average cost of net debt totaled 11.2% in 4Q17, versus 13.1% in 3Q17 and 13.3% in 4Q16, especially due to the effects of the decrease in the average SELIC rate when compared to the previous periods. In turn, the average cost of gross debt totaled 9.7% in 4Q17, versus 11.2% in 3Q17 and 13.3% in 4Q16. The breakdown of net debt at the end of 4Q17 was 64.0% pegged to the CDI, 29.0% to fixed rates, 5.5% to the TJLP, 1.3% to the SELIC and 0.2% to the IPCA. Indebtedness 12/31/ /30/ /31/2017 Cash and Investments ¹ 1, , ,896.7 Cash and Investments - Book value - 3, ,438.8 Credit note - (508.9) (542.2) Gross debt ¹ 6, , ,618.6 Gross debt - Book value - 8, ,160.7 NCE (export credit note) - (508.9) (542.2) Borrowings ¹ 3, , ,250.4 Local Bonds 1, , ,015.5 Finance lease payable Confirming payable Debt Swap MTM ² - (64.0) (108.3) Net Debt 5, , ,721.9 Average Cost of Net Debt (p.a.) 13.3% 13.1% 11.2% Average Cost of Gross Debt (p.a.) 13.3% 11.2% 9.7% ¹ Disregards the amount of R$542.2 million resulting from the structure for entry of the bonds issuance funds, which equally impacts cash and gross debt ² Opened as of 2Q17 Includes Borgato s net debt, which totaled R$216.6 million at the end of the period. 9

10 Net Debt (268) 550 (368) 5, Borgato 1,230 (2,676) 1,738 5,258 (671) - 5,505 Net Debt 4Q16 Financial Result EBITDA Cost Sale of Assets Financial Result Dividends + Interest Capital Gross Capex Working Capital IPO Movida and Sale of Shares Others Net Debt 4Q17 In 4Q17, net financial expenses totaled R$166.9 million, a decrease of 27.5% YoY, mainly due to the extraordinary impact of R$39.9 million related to adjustments in prices of past acquisitions that affected the 4Q16. In relation to 3Q17, net financial expenses decreased due to the impact of the drop in the SELIC rate, partially offset by the carry cost of the cash position, given the liability management carried out during the second half of In 2017, net financial expenses totaled R$670.5 million (-10.4% YoY), a significant decrease from the R$748.3 million recorded in This decrease is related to the extraordinary impact of R$39.9 million mentioned above, as well as to the drop in the SELIC rate and consequent reduction in the average cost of gross debt in Financial Result JSL - Consolidated Financial Revenues % -7.9% % Financial Expenses (186.5) (231.3) (253.7) 36.0% 9.7% (852.7) (894.6) 4.9% Derivatives Result 5.0 (14.1) (106.1) Net Exchange Variation (96.2) % % Extraordinary Financial Expenses (39.9) (39.9) - - Total (230.1) (169.9) (166.9) -27.5% -1.8% (748.3) (670.5) -10.4% Total Assets / Net Debt Asset/Debt ratio of 1.2 x 6,635 5, Confirming Payables Asset/Debt ratio of 1.0 x 5,913 4,115 - Light 3,650 - Light 5,474 - Net Debt 2,263 - Heavy 2,520 - Heavy l Net Debt Book Value + Assets available for sales Market Value 10

11 Leverage Indicators Leverage Indicators 12/31/ /31/ /30/ /30/ /31/2017 Covenants Net Debt¹ / EBITDA-A² 2.2x 1.9x 1.9x 1.9x 1.9x Max 3,5x Net Debt¹ / EBITDA³ 5.0x 4.5x 4.6x 4.6x 4.4x Max 4,75x EBITDA-A¹ / Net interest expenses 3.7x 4.0x 4.2x 4.5x 4.8x Min 2,0x ¹ Includes Borgato Net Debt of R$ million ² Accumulated over the last 12 months ³ Accumulated over the last 12 months, considering EBITDA of R$ 78.4 million from Borgato and Fleet Services for 12/31/2017 The ratio between net debt and proforma EBITDA (considering Sociedades Borgato) went down to 4.4x in December 2017, versus 5.0x in December 2016 and 4.6x in September In addition, the ratio between net debt and EBITDA- A stood at 1.9x in December 2017, an improvement over the 2.2x of December 2016, and stable if compared to the 1.9x of September The deleveraging in the yearly comparison is explained by the primary offering of Movida s shares in the market, by the decrease in net CAPEX, by the increase in the operating result and by the reduction in the financial expenses in the period. VII. EBITDA, Cash Flow and ROIC - JSL Consolidated JSL - Consolidated EBITDA Reconciliation Net Result (150.4) (183.2) Financial Result % -1.8% % Income tax and Social contribution (49.4) % (66.3) Depreciation / Amortization % -5.3% % EBITDA % -2.1% 1, , % Costs of Sales of Assets % -22.1% 1, , % EBITDA-A % -14.2% 2, , % Cash Flow Summary¹ Income before tax (199.8) % 40.7% (249.5) % Depreciation and Amortization % -0.5% % Cost of Sale of Assets² % -22.1% 1, , % Other Non-cash adjustments % -11.6% % Accounts receivables, Inventory and Suppliers (225.8) % % (161.5) % Other Assets and Liabilities (71.4) (43.1) % Paid interest (179.4) (9.1) (151.0) -15.8% - (591.7) (636.7) 7.6% Operating Cash Generation % -0.6% 2, , % Increase in Fixed Assets (413.9) (860.7) (1,108.8) 167.9% 28.8% (1,794.3) (3,009.8) 67.7% Secondary offering of shares of investees (Movida) Capital contribution and repurchase of shares of investees Payment in the companies aquisitions - (4.8) (5.5) % - (67.6) - Other Investments (1.5) % - (35.7) % Investments Net Cash (162.3) (346.1) % (682.1) - Increase (Decrease) in Capital (71.2) Payment of liabilities and financial lease - (48.4) Income received from derivatives 5.7 (41.7) (2.0) % -95.2% 5.7 (72.5) - Dividends + Interest on Capital (208.7) % Assignment of receivables Loan and Financing (632.3) 1,622.5 (569.9) -9.9% % (790.9) 1, (Purchasing) / Selling Treasury Shares 1.3 (0.0) % - (34.6) % Increase (Decrease) in Cash and Financial Investments (279.2) 1,370.4 (834.9) 199.0% % (643.4) 1, ¹ Considers as cash the balance of financial investments classified as current assets (securities) ² Non-cash cost ³ Pursuant to IFRS, variations in cash in the increase in fixed assets line in the cash flow statement comprise only the amounts actually disbursed by the Company. These acquisitions made with restricted financing are not reflected in the cash flow statement when they are contracted. However, as this financing is amortized, the respective cash disbursements are reflected in the loans and financing line 4 Intangible assets, merger of subisidiary and business combination 11

12 In 2017, JSL Consolidated s cash generation before the expansion was R$1.0 billion, a result of the higher sales of assets during the period, both for JSL Logística as well as for Movida (a result of consolidation of its fleet). Investment in maintenance capex totaled R$1.8 billion, and investment in expansion was R$927 million, mainly due to Movida s fleet growth over the last twelve months. The free cash flow for the Company totaled R$97 million in the period, affected by working capital and taxes in 2H17. JSL Consolidated (ex-movida) cash generation before expansion capex was R$951 million in After R$420 million investment in expansion, its Free Cash Flow to Firm was R$531 million, higher than the R$510 million recorded in 2016, confirming the resilience of the Logistics business and a gradual recovery at the end of JSL - Consolidated Consolidated ex-movida (JSL Logística) Fluxo de Caixa Livre para Firma (R$ milhões) EBITDA 1,092 1,061 1, Non-cash Asset and Investment Impairments EBITDA adj. by Impairments 1,092 1,166 1, Book Value of Assets Sold (Non-cash Cost of Assets Sales) 870 1,289 1, Maintenance Capex (727) (1,105) (1,753) (243) (199) (171) Change in Working Capital and Taxes Paid (*) *(191) *(143) Cash Generated before Expansion Capex 1,441 1,756 1, , Expansion Capex (1,509) (1,382) (927) (591) (548) (420) Free Cash Flow to Firm (68) * 2017 adjustment in working capital and taxes due to the negative impact of R$75 million from the reclassification of activities from leasing of property, plant and equipment to accounts receivable due to the change in accounting standards for IFRS at JSL Leasing. ROIC LTM - 12/31/2017 * JSL Consolidada ¹ JSL Logística ² Logistics Operations with more than 12 months of revenue Net revenue 7, , ,158.8 Gross Profit 1, (-) Administrative and Sales Expenses (780.2) (293.0) (264.4) (+) Extraordinary expenses (-) Others Operating Revenues (Expenses) (34.7) EBIT ³ (-) Taxes (Considers effective tax rate of 30%) (222.1) (141.2) (157.1) (=) NOPLAT (A) (=) Avarage Invested Capital (B) 6, , ,077.3 ROIC without goodwill effect (A/B) 8.3% 9.2% 11.9% * Includes the results of Borgato and Fleet Services ¹ Contemplates the consolidation of results of JSL Logistics, Movida, JSL Concessionáriasa, JSL Leasing and the eliminations among business ² Excludes the effect of investments in other businesses ³ Excluding non-recurring effects 12

13 VIII. New Corporate Structure JSL s new development cycle In 2018, a new development cycle begins, which will be fostered by the organization of our activities in five independent and synergistic companies. Amongst the main changes, we highlight Vamos, which comprehends the rental and commercialization of trucks, machinery and equipment, and will also aggregate the activities of Leasing and Dealerships of Heavy Vehicles. In addition, CS Brasil keeps its focus on service contracts with the public sector and concessions. JSL Logística will maintain its business lines of dedicated services, charter services and cargo transportation. Movida and Concessionárias de Veículos Leves continue to be disclosed independently. Amongst the main goals of the new corporate organization, we highlight: (i) (ii) (iii) (iv) (v) (vi) Simplification of the business structure facilitating its understanding by the market and the customer; Business units transformed into independent companies with synergies; Greater focus and agility in the management of each unit, with dedicated management; Transparency of results and history of deliveries; Comparability to industry peers Cycle of continuity of the culture and the relationship with the clients. Through the new organization shown in the figure below, we will provide subsidies for greater autonomy and responsibility of managers, with whom we share the vision of business owner, as well as for the sustainability of our values and strategic objectives. 25.8% 100% 91% 100% 100% 65.6% 34.4% Dedicated Services Truck, Machinery and Equip. Rentals Public Fleet Management Light Vehicle Dealership Network Car Rentals Cargo Transportation Truck, Machinery and Equip. Dealership Network Urban Mobility (Passenger Transp.) Insurance Brokerage Light Vehicle Fleet Management Charter Services Used Trucks, Machinery and Equipment Stores Urban Cleaning Used Light Vehicle Stores Leasing 13

14 IX. Stock Market Share Performance JSL s shares are listed on the B3 s Novo Mercado segment and are included in the Special Corporate Governance Stock Index (IGC) and the Special Tag Along Stock Index (ITAG). JSLG3 has been included in B3 s Small Cap Index (SMLL) since January On December 31, 2017, JSLG3 s shares were priced at R$8.25. On December 31, 2017, the Company had a total of 202,500,000 shares, of which 202,077,032 were outstanding and 422,968 were held in treasury. JSLG3 vs. MOVI3 vs. IBOV and SMLL11 Performance (12/31/2016 to 12/31/2017 Base 100) SMLL ,0% IBOV ,2% MOVI3 R$7,05-6,0% IBOV JSLG3 MOVI3 SMLL JSLG3 R$8,25-9,1% X. Glossary APV Adjustment to present value. Applied to monetary assets and liabilities to reflect their present value, taking into account contractual cash flows, interest rates explicitly or implicitly applicable to the respective assets and liabilities, and rates used by the market for similar transactions. The effects are included in financial income or expenses in the income statement, for the term of interest in relation to contractual cash flows. General Cargo or General Cargo Transportation Services for the transportation of products from point A to point B, by vehicles assuming Full Truck Load. EBITDA-A or EBITDA Added Represents EBITDA plus the residual costs associated with the sale of fixed assets, which does not represent operational cash disbursements, as they are merely an accounting representation of the write-off of assets at the time of sale. Thus, the Company's management believes that EBITDA-A is a more appropriate measure of operating cash flow than traditional EBITDA, since it represents the Company s capacity to meet its financial obligations. Elimination Offsetting of the amounts inherent in the operations between JSL Logística, Movida and JSL Concessionárias, with a null effect on JSL Consolidated figures. FINAME Allocated to finance the acquisition of new machinery and equipment, made in Brazil, under attractive conditions. FINEM Financing to projects of R$10 million or more, intended to implement, expand, recover and modernize fixed assets, directly through BNDES or through BNDES-accredited financial institutions at differentiated costs. 14

15 Floor Plan Program to finance the inventory of new and used, national and imported vehicles and auto parts, via revolving credit granted by manufacturers to dealerships, which usually has a grace period, exempt from any charges, which may vary for each manufacturer. Bill Discounting - Partnerships with financial institutions to manage commitments to suppliers. Suppliers transfer receivables arising from the sale of vehicles to financial institutions. Manufacturers Funds Funds for the capitalization of dealerships, comprising the initial investment and the percentage amounts of the cost of acquisition of vehicles sold by manufacturers, deposited in funds managed by financial institutions related to them, on behalf of dealerships. These funds are used as guarantees of vehicle credit lines, and the contribution amounts exceeding the contribution targets established on an annual basis can be withdrawn. The use of funds must be submitted for analysis and approval by the manufacturers. Fleet Management and Outsourcing (vehicles / machinery / equipment) with addition of service Management and outsourcing services provided by JSL Logística through fleets of both light and heavy vehicles, including fleet sizing and additional services related to fleet, machinery and equipment. JSL Concessionárias or Dealerships merged into JSL in February 2012, it is a holding company that owns 37 dealerships, 24 of which selling light vehicles and 13 selling heavy vehicles, and an insurance brokerage firm. The light vehicle dealerships belong to the Volkswagen, Fiat and Ford brands, and the heavy vehicle dealership is under the MAN brand. It consolidates the companies Original Veículos Ltda., Avante Veículos Ltda., Ponto Veículos Ltda., Transrio Caminhões, Ônibus, Máquinas e Motores Ltda., Vintage Corretora e Administradora de Seguros Ltda. JSL Logística Includes the results of JSL's logistics operations, as well as Schio s. Movida Participações S.A. or Movida Consolidates all the rent a car (RAC) activities operated by Movida Rent a Car Ltda., as well as fleet management and outsourcing (GTF) activities. RSC or Revenue from Same Contracts Revenue from contracts effective in both comparison periods. ROIC of Mature Operations Comprises the results of contracts accounted for at least 12 months prior to the end of the current billing period, including any ramp-up periods. Net debt of consolidated operations consists of the balance of operational debt linked to assets and for corporate debt, the balance from previous period plus adjustments for any transactions that impacted the cash position in the last 12 months. Dedicated Services or Services Dedicated to the Supply Chain Services provided in an integrated and customized way for each client, which include managing the flow of inputs/raw materials and information from the supplier through entry of the materials into the clients facilities (Inbound operations), the outflow of products from the clients facilities to the point of consumption (Outbound operations), and the movement of products and management of inventory, Reverse Logistics and Warehousing. Utilization Rate The calculation of utilization rate considers the total number of vehicles less cars under implementation and available for sale. Passenger Transportation Charter services for companies and intercity and municipal public transportation of passengers. Sale of Assets with Management Sale of vehicles associated with fleet management contracts. 15

16 XI. Exhibits 1. JSL Logística Logistics Logistics Assets 4Q16 4Q17 Liabilities 4Q16 4Q17 In R$ million In R$ million Current assets Current liabilities Cash and cash equivalents Loans and financing Securities ,052.9 Debentures Accounts receivables Leasing payable Inventory Suppliers Recoverable taxes Suppliers payable Other credits Floor Plan - - Prepaid Expenses Salaries and charges payable Assets availablle for sales (fleet renewal) Taxes payable Deferred Tax Credits - - Accounts payable and advances from customers Related parties Total current assets 1, ,258.8 Dividends and interest on capital payable - - Income tax and Social Contribution payable Non-current assets Total Current liabilities 1, ,582.8 Non-current Securities Non-current liabilities Financial instruments and derivatives Loans and financing 2, ,170.1 Accounts receivables Debentures 1, ,333.0 Recoverable taxes Leasing payable Deposit in court Related parties - - Related parties Derivatives Other credits Taxes payable Prepaid Expenses - - Provision for litigation and administrative demands Deferred Tax Credits Deferred Income tax and Social Contribution Assets Held for distribution to shareholder (4.6) - Accounts payable and advances from customers (4.6) - Total Total Non-current liabilities 4, ,093.4 Investments 1, ,351.8 Equity Property, plant and equipment 3, ,171.5 Capital stock Intangible Reserves of capital , ,809.2 Tresuary Shares (45.4) (0.5) Equity Appraisal Total Non-current assets 4, ,204.8 Reserves of earnings (20.8) (73.2) Minority interest Total Equity Total Assets 6, ,463.6 Total Liabilities 6, ,463.6 Logistics Income Statement Gross Revenue 1, , , % 0.6% 4, , % Revenue from Sale and services rendered 1, , , % 1.1% 4, , % Fleet Renewal Revenue % -6.0% % (-) Deductions from Revenue (177.6) (190.8) (228.4) 28.6% 19.7% (694.4) (753.5) 8.5% Deductions from Revenue (168.9) (187.2) (226.7) 34.2% 21.1% (681.7) (742.0) 8.8% Deductions from Revenue (8.8) (3.5) (1.7) -80.7% -51.4% (12.7) (11.5) -9.4% (=) Net Revenue 1, , , % -2.8% 4, , % Revenue from Sale and services rendered % -2.7% 3, , % Fleet Renewal Revenue % -4.1% % (-) Total Costs (899.6) (877.5) (864.3) -3.9% -1.5% (3,333.3) (3,456.5) 3.7% (=) Gross Profit % -9.2% % Gross Margin 14.7% 17.2% 16.0% 1.3 p.p p.p. 17.2% 16.4% -0.8 p.p. (-) Operating expenses before financial results (139.0) (68.5) (67.0) -51.8% -2.2% (347.8) (241.2) -30.6% Administrative and Sales Expenses (74.2) (60.5) (72.4) -2.4% 19.7% (268.6) (252.2) -6.1% Tax Expenses (3.0) (3.0) (1.4) -53.3% -53.3% (6.7) (6.7) 0.0% Other Operating Revenues (Expenses) (61.8) (4.9) % - (72.6) % EBIT % -13.3% % EBIT Margin 1.7% 11.6% 10.3% 8.6 p.p p.p. 9.2% 11.6% 2.4 p.p. EBITDA % -7.6% % EBITDA Margin 14.5% 23.1% 22.0% 7.5 p.p p.p. 21.3% 23.3% 2.0 p.p. EBITDA-A % -6.4% 1, , % EBITDA-A Margin 23.3% 29.1% 28.1% 4.8 p.p p.p. 27.0% 30.1% 3.1 p.p. 16

17 2. Movida Movida Movida Assets 4Q16 4Q17 Liabilities 4Q16 4Q17 In R$ million In R$ million Current assets Current liabilities Cash and cash equivalents Loans and financing Securities Debentures Financial instruments and derivatives - - Leasing payable Accounts receivables Suppliers Inventory - - Suppliers payable Recoverable taxes Floor Plan - - Other credits Salaries and charges payable Advance to third parties - - Taxes payable Prepaid Expenses Accounts payable and advances from customers Assets availablle for sales (fleet renewal) Related parties Deferred Tax Credits - - Dividends and interest on capital payable Related Parties Financial instruments and derivatives Income tax and Social Contribution payable Total current assets , Total Current liabilities 1, ,615.8 Non-current assets Non-current - - Non-current liabilities - - Securities - - Loans and financing Financial instruments and derivatives - - Debentures Accounts receivables Leasing payable Recoverable taxes - - Related parties - - Deposit in court Financial instruments and derivatives - - Related parties - - Taxes payable - - Other credits - - Provision for losses on investments in continuity - - Prepaid Expenses - - Provision for litigation and administrative demands Deferred Tax Credits Deferred Income tax and Social Contribution Assets held for distribution to shareholders Liabilities held for distribution to shareholders Total Non-current liabilities ,105.9 Total Equity - - Investments - - Capital stock ,177.6 Property, plant and equipment 2, ,799.6 Reserves of capital Intangible Tresuary Shares - - 2, ,823.4 Advance for Future Capital Increase Reserves of earnings - - Total Non-current assets 2, ,845.1 Accumulated Profits/Losses Minority interest Total Equity ,284.8 Total Assets 2, ,006.5 Total Liabilities 2, ,006.5 Movida Income Statement Gross Revenue % -12.4% 1, , % (-) Deductions from Revenue (25.5) (32.3) (33.6) 31.8% 4.0% (99.8) (118.8) 19.0% (=) Net Revenue % -13.2% 1, , % (-) Total Costs (352.9) (515.6) (420.3) 19.1% -18.5% (1,361.7) (1,823.1) 33.9% (=) Gross Profit % 3.9% % Gross Margin 26.1% 23.7% 28.4% 2.3 p.p. 4.7 p.p. 25.6% 26.1% 0.5 p.p. (-) Operating expenses before financial results (81.4) (94.8) (100.6) 23.6% 6.1% (277.7) (392.8) 41.4% EBIT % 0.6% % EBIT Margin* 19.9% 25.4% 24.0% 4.1 p.p p.p. 24.1% 24.8% 0.7 p.p. (+-) Financial Results (41.4) (43.8) (46.0) 11.1% 5.0% (141.9) (161.8) 14.0% (=) Income before tax % -8.3% % Provision for income tax and social contribution (0.5) (7.5) % % (17.2) (24.6) 43.0% (=) Net Income % 41.1% % Net Margin 0.2% 2.1% 3.4% 3.2 p.p. 1.3 p.p. 1.8% 2.7% 0.9 p.p. EBITDA % 1.5% % EBITDA Margin* 28.1% 32.7% 31.2% 3.1 p.p p.p. 33.9% 32.1% -1.8 p.p. * Calculated on net revenue from services 17

18 3. JSL Concessionárias Dealerships Dealerships Assets 4Q16 4Q17 Liabilities 4Q16 4Q17 In R$ million In R$ million Current assets Current liabilities Cash and cash equivalents Loans and financing Securities Debentures - - Accounts receivables Leasing payable - - Inventory Suppliers Recoverable taxes Confirming payable (automaker) - - Other credits Floor Plan - - Advance to third parties Salaries and charges payable Prepaid Expenses Taxes payable Assets availablle for sales (fleet renewal) - - Accounts payable and advances from customers Deferred Tax Credits - - Related parties Dividends and interest on capital payable - - Total current assets Income tax and Social Contribution payable Total Current liabilities Non-current assets Non-current Non-current liabilities Securities - - Loans and financing Financial instruments and derivatives - - Debentures - - Accounts receivables - - Leasing payable - - Recoverable taxes Related parties - - Deposit in court Derivatives - - Related parties Taxes payable Other credits provision for losses on investments in continuity - - Prepaid Expenses - - Provision for litigation and administrative demands Deferred Tax Credits Deferred Income tax and Social Contribution Accounts payable and advances from customers - - Total Total Non-current liabilities Investments (0.0) (156.2) Equity Property, plant and equipment Capital stock Intangible Reserves of capital (34.0) Tresuary Shares - - Equity Appraisal - - Total Non-current assets Reserves of earnings (45.5) (29.0) Minority interest - - Advance for Future Capital Increase - - Total Equity Total Assets Total Liabilities Dealerships Income Statement Gross Revenue % -3.6% % (-) Deductions from Revenue (19.8) (17.8) (16.6) -16.2% -6.7% (67.8) (71.4) 5.3% (=) Net Revenue % -3.4% % (-) Total Costs (173.6) (181.1) (176.7) 1.8% -2.4% (680.6) (679.0) -0.2% (=) Gross Profit % -7.6% % Gross Margin 16.2% 17.5% 16.7% 0.5 p.p p.p. 18.5% 18.1% -0.4 p.p. (-) Operating expenses before financial results (62.7) (39.6) (22.0) -64.9% -44.4% (189.1) (137.3) -27.4% Administrative and Sales Expenses (64.9) (38.2) (40.4) -37.8% 5.8% (187.8) (152.5) -18.8% Tax Expenses (3.2) (1.4) (1.1) -65.6% -21.4% (6.9) (5.5) -20.3% Other Operating Revenues (Expenses) % EBIT (29.1) (1.2) % - (34.1) % EBIT Margin -14.1% -0.6% 6.3% 20.4 p.p. 6.9 p.p. -4.1% 1.5% 5.6 p.p. EBITDA (13.8) % - (9.4) EBITDA Margin -6.6% 0.4% 7.3% 13.9 p.p. 6.9 p.p. -1.1% 2.5% 3.6 p.p. EBITDA-A (5.0) % % EBITDA-A Margin -2.4% 2.0% 8.3% 10.7 p.p. 6.3 p.p. 1.5% 4.1% 2.6 p.p. 18

19 4. Leasing Leasing Leasing Assets 4Q16 4Q17 Liabilities 4Q16 4Q17 In R$ million In R$ million Current assets Current liabilities Cash and cash equivalents Loans and financing - - Securities Debentures - - Accounts receivables (0.2) 74.4 Leasing payable - - Inventory - - Suppliers Recoverable taxes Confirming payable (automaker) - - Other credits Floor Plan - - Advance to third parties Salaries and charges payable Prepaid Expenses Taxes payable Assets availablle for sales (fleet renewal) Accounts payable and advances from customers Deferred Tax Credits - - Related parties Dividends and interest on capital payable - Total current assets Income tax and Social Contribution payable - - Total Current liabilities Non-current assets Non-current Non-current liabilities Securities - - Loans and financing - - Financial instruments and derivatives - - Debentures - - Accounts receivables - - Leasing payable - - Recoverable taxes - - Related parties - - Deposit in court - - Derivatives - - Related parties - - Taxes payable - - Other credits - - provision for losses on investments in continuity - - Prepaid Expenses - - Provision for litigation and administrative demands - - Deferred Tax Credits Deferred Income tax and Social Contribution Accounts payable and advances from customers - - Total Total Non-current liabilities Investments Equity Property, plant and equipment Capital stock Intangible Reserves of capital Tresuary Shares - - Equity Appraisal - - Total Non-current assets Reserves of earnings (7.4) (2.9) Minority interest - - Advance for Future Capital Increase Total Equity Total Assets Total Liabilities Leasing Income Statement Gross Revenue (7.3) % % (-) Deductions from Revenue (0.2) (0.2) (0.2) 0.0% 0.0% (0.3) (0.3) 0.0% (=) Net Revenue (7.5) % % (-) Total Costs (7.1) (2.5) % - (21.2) (9.5) -55.2% (=) Gross Profit % 25.6% % Gross Margin 23.5% 61.1% -65.1% p.p p.p. 24.9% 60.4% 35.5 p.p. (-) Operating expenses before financial results (2.2) (2.4) (2.7) 22.7% 12.5% (8.7) (10.3) 18.4% Administrative and Sales Expenses (2.1) (2.3) (2.6) 23.8% 13.0% (8.6) (10.0) 16.3% Tax Expenses (0.0) (0.1) (0.1) n.a. 0.0% (0.1) (0.2) 100.0% Other Operating Revenues (Expenses) (0.0) (0.0) (0.0) n.a. - (0.0) (0.1) - EBIT (0.0) n.a. 46.7% (1.7) EBIT Margin -0.1% 23.3% -29.8% p.p p.p. -6.0% 17.6% 23.6 p.p. EBITDA (3.7) % % EBITDA Margin 55.2% 26.1% 49.5% -5.7 p.p p.p. 47.1% 19.2% p.p. EBITDA-A (3.7) % % EBITDA-A Margin 55.2% 26.1% 49.5% -5.7 p.p p.p. 47.1% 19.2% p.p. 19

20 5. Consolidated Consolidated Consolidated Assets 4Q16 4Q17 Liabilities 4Q16 4Q17 In R$ million In R$ million Current assets Current liabilities Cash and cash equivalents Loans and financing Securities ,718.5 Debentures Financial instruments and derivatives - - Leasing payable Accounts receivables 1, ,211.8 Suppliers Inventory Suppliers payable Recoverable taxes Floor Plan Income tax and social contribution Labor obligations Other credits Tax liabilities Advance to third parties Accounts payable and advances from customers Prepaid Expenses Related parties Assets availablle for sales (fleet renewal) Dividends and interest on capital payable - - Deferred Tax Credits - - Financial instruments and derivatives - - Related Parties - - Income tax and Social Contribution payable Credit rights assignment Total current assets 2, , Total Current liabilities 3, ,129.7 Non-current assets Non-current - - Non-current liabilities - Securities Loans and financing 2, ,809.9 Financial instruments and derivatives Debentures 1, ,731.1 Accounts receivables Leasing payable Recoverable taxes Related parties - - Income tax and social contribution Assignment of credit rights Deposit in court Financial instruments and derivatives Related parties Taxes payable Other credits Provision for losses on investments in continuity - - Prepaid Expenses - - Provision for litigation and administrative demands Deferred Tax Credits Deferred Income tax and Social Contribution Capitalization funds - vehicle Accounts payable and advances from customers Total Non-current liabilities 5, ,181.9 Total Equity - Investments Capital stock Property, plant and equipment 5, ,056.6 Reserves of capital Intangible Tresuary Shares (3.7) (0.5) 5, ,529.3 Equity Appraisal Reserves of earnings - - Total Non-current assets 6, ,012.5 Accumulated Profits/Losses (66.4) (72.3) Minority interest Total Equity ,189.3 Total Assets 8, ,500.9 Total Liabilities 8, ,

21 Consolidated Income Statement Gross Revenue 1, , , % -3.5% 7, , % Revenue from Sale and services rendered 1, , , % 2.3% 6, , % Fleet Renewal Revenue % -22.3% 1, , % (-) Deductions from Revenue (222.0) (241.0) (278.8) 25.6% 15.7% (860.7) (944.0) 9.7% (=) Net Revenue 1, , , % -6.0% 6, , % Revenue from Sale and services rendered 1, , , % -0.1% 5, , % Fleet Renewal Revenue % -22.1% 1, , % (-) Total Costs (1,384.9) (1,506.3) (1,405.1) 1.5% -6.7% (5,225.8) (5,769.7) 10.4% (=) Gross Profit % -3.2% 1, , % Gross Margin 18.3% 20.3% 20.9% 2.6 p.p. 0.6 p.p. 19.9% 20.5% 0.6 p.p. (-) Operating expenses before financial results (279.6) (205.2) (192.3) -31.2% -6.3% (798.6) (781.6) -2.1% Administrative and Sales Expenses (203.2) (174.5) (200.2) -1.5% 14.7% (670.4) (732.9) 9.3% Tax Expenses (6.2) (4.6) (2.7) -56.5% -41.3% (13.8) (13.2) -4.3% Other Operating Revenues (Expenses) (70.2) (26.1) % % (114.4) (35.5) -69.0% Equity Account Result 0.0 (0.0) 0.0 n.a (0.0) - EBIT % 0.4% % EBIT Margin* 2.3% 12.9% 13.0% 10.7 p.p. 0.1 p.p. 9.7% 13.0% 3.3 p.p. (+-) Financial Results (230.1) (169.9) (166.9) -27.5% -1.8% (748.3) (670.5) -10.4% (=) Income before tax (199.8) % 40.7% (249.5) % Provision for income tax and social contribution 49.4 (8.0) (4.1) % -48.8% 66.3 (17.2) % (=) Net Income (150.4) % - (183.2) % Net Margin -8.9% 0.1% 0.5% 9.4 p.p. 0.4 p.p. -2.8% 0.2% 3.0 p.p. Controlling shareholders 0.0% % p.p. 0.0% (2.7) - Non-controlling shareholders 0.0% 502.9% p.p. 0.0% EBITDA % -2.1% 1, , % EBITDA Margin* 14.4% 22.6% 22.1% 7.7 p.p p.p. 20.5% 22.6% 2.1 p.p. EBITDA-A % -14.2% 2, , % EBITDA-A Margin* 32.5% 42.2% 38.5% 6.0 p.p p.p. 36.0% 40.9% 4.9 p.p. * Calculated on net revenue from services 21

22 Consolidated Cash Flow Statement From operating activities Net Income (199.8) % 40.7% (249.5) % - Adjustments for conciliating profit with cash generated by operating activities % -14.8% 2, , % Depreciation/amortization % -0.5% % Cost of sale of assets used in service rendering - property, plant and equipment % -22.1% 1, , % Gain on Sale of Fixed Assets Result of subsidiaries recognized by equity method Derivatives (35.9) % (13.4) % (Recording)/reversal of deferred Income Tax and Social Contribution Provision/reversal for litigation and administrative demands % 34.6% % Provision for doubtful accounts % 101.6% % Losses of investment of continued operations Provision for losses from vehicles available for sale Provision for losses on inventories (1.0) (0.3) % Adjustment to present value (10.2) (4.8) - APV of recoverable value-added taxes (ICMS) Property, plant and equipment write-off - claims Share-based compensation (stock options) % % Provisioned interest % 16.5% % Aquisition Adjustment of present value - Quick % - (10.3) % Provision for losses - ICMS % Gain in Business Combination (62.2) % - (62.2) % Provision for losses of vehicles % Write-off of investment in sale of shares of subsidiaries % Adjustment to recoverable value of assets % % Write-off of other assets - (31.5) (34.4) - 9.2% - (82.9) - Extemporary tax credits Changes in Current and Noncurrent Assets and Liabilities (1,312.9) % % 92.2 (2,174.5) Decrease (Increase) in Assets Securities (1,132.2) % (1,271.3) - Accounts receivable (59.8) (63.1) % % (174.6) (216.9) 24.2% Inventory 9.0 (22.9) (10.4) % 34.4 (34.1) % Recoverable taxes (50.5) (55.6) - Related parties, net (0.1) % Deposit in court (20.0) (2.9) (1.1) -94.5% -62.1% (78.4) (3.8) -95.2% Other credits % -92.9% % Forward Expenses % 120.2% % (Decrease) Increase in Liabilities Suppliers (137.2) % % (16.1) % Floor Plan 11.6 (8.4) (5.6) Tax and labor liabilities (55.0) 37.2 (33.5) -39.1% % (12.0) Accounts payable (28.6) % % Related parties (1.2) (1.2) - Judicial and administrative demands Paid (33.1) (11.2) (15.3) -53.8% 36.6% (33.1) (47.7) 44.1% Tax provisions (2.1) (18.9) % (13.1) (32.8) 150.4% Interest paid (179.4) (9.1) (151.0) -15.8% - (591.7) (636.7) 7.6% Net cash generated in operating activities (427.5) 1, % - 2, , % Cash flow from investment activities Secondary offering of shares of investees (Movida) Capital contribution and repurchase of shares of investees Acquisition of subsidiary, net of cash acquired (0.7) % - (26.0) % Merger of subsidiary % % Payment in the companies aquisitions - (4.8) (5.5) % - (67.6) - Business combination, net of cash Fixed asset (413.9) (860.7) (1,108.8) 167.9% 28.8% (1,794.3) (3,009.8) 67.7% Intangible asset 20.7 (1.5) (6.5) % - (10.0) (10.8) 8.0% Net cash generated (used) in investment activities (393.6) (867.0) (1,046.4) 165.9% 20.7% (1,830.0) (3,066.7) 67.6% Cash flow from financing activities Primary and secondary offering of controled company (71.2) IPO Movida Reserve of government grants Tresuary Shares 1.3 (0.0) % - (34.6) % Dividends paid (200.0) % Payment of liabilities and financial lease - (48.4) Income received from derivatives 5.7 (41.7) (2.0) % -95.2% 5.7 (72.5) - Interest on capital - paid (8.7) % Assignment of receivables Reduction in loans and financing, net (632.3) 1,622.5 (569.9) -9.9% % (790.9) 1, Net cash generated (used) in financing activities (625.2) 1,532.6 (488.9) -21.8% % (1,028.5) 2, Net increase (reduction) in cash and cash equivalents (54.7) (81.1) 48.3% % (365.2) % Cash and cash equivalents (including securities) Begining of the period % 42.7% % End of the period % -10.2% % Net increase (reduction) in cash and cash equivalents (54.7) (81.1) 48.3% % (365.2) % 22

23 OPERATING HIGHLIGHTS BUSINESS DESCRIPTION 6. Vamos - The Largest Truck, Machinery and Equipment Rental Company in Brazil RENTAL DEALERSHIP NETWORK AND ASSET SALES Vamos core business Outsourcing of truck fleet, machinery, and equipment Customized and long-term contracts Operational lease structuring for rental of trucks, machinery, and equipment Largest chain of truck, machinery, and equipment retail stores in Brazil Key competitive advantages, as it enables control over the whole business cycle with sale of assets at contract termination Provides financial lease for acquisition of trucks, machinery, and equipment Total fleet: 8,725 vehicles with 3.07 years old on average 4,874 trucks (3.08 years) 2,198 machinery and equipment items (3.3 years) 1,314 pickup trucks with customized equipment (1.69 years) 339 buses (3.24 years) Chain of own stores => 36 stores: 14 VW MAN 15 Valtra 3 DAF 4 exclusive semi-new vehicle stores Operation in 9 states in Brazil 1,277 vehicles sold in the last twelve months Vamos Income Statement 2017¹ Gross Revenue 1,023.8 Revenue from Sale and services rendered Fleet Renewal Revenue (-) Deductions from Revenue (-) Deductions from Revenue (=) Net Revenue (99.8) (2.7) Revenue from Sale and services rendered Fleet Renewal Revenue 98.0 (-) Total Costs (=) Gross Profit (572.9) Gross Margin (-) Operating expenses before financial results 37.8% (141.8) EBIT EBIT Margin* 25.1% EBITDA EBITDA Margin* 44.2% * Calculated on net revenue from services ¹ Includes the results of Borgato 23