• ABLA: Brazilian Association of Car Rental Companies.


  • Anfavea: National Association of Manufacturers of Motor Vehicles.


  • ARAC: Association of Industrial Car Rental without Driver, an association that brings together leasing companies operating in Portugal.


  • Assignment of credits by suppliers (Carmakers): the Company has as a strategic part of its operation the realization of large volumes of vehicle acquisitions with the automakers, in order to obtain better financial conditions. The Company’s suppliers, in turn, deduct the securities from first-tier financial institutions through a credit assignment operation, which basically consists on the sale of these receivables, with no right of return. In this way, securities are no longer paid to suppliers and are paid to financial institutions, which take into account the Company’s credit risk.


  • Average Age: average age of the fleet calculated in months. It can be calculated for the operational fleet currently in operation in the Fleet Management and Rent-a-Car divisions as well as for the vehicles sold in the Used Cars division.


  • Average purchase price: is calculated by dividing the total Capex in fleets by the total number of cars purchased in the analyzed period.


  • Average Rented Fleet: in Rent-a-Car, is obtained by dividing the number of daily rates used in the period by the number of days in the period. In Fleet Management is the number of effectively rented cars in the period.


  • Average selling price: is calculated by the division of Gross revenue of Used Cars by the total of cars sold in the analyzed period.


  • Average Tariff: For Fleet Management, the average tariff is calculated by dividing the gross rental revenue by the average rented fleet in the analyzed period, in monthly basis. For the Rent-a-Car division, the rate is in daily basis and is calculated by dividing gross rental revenue by the total number of daily rentals.





  • CAGR: compound annual growth rate.


  • Capex and Net Capex in fleets: includes the total invested by the Company in the purchase of vehicles. Net Capex considers the total invested subtracting the gross revenue generated by the sale of Used Cars, this being the Company’s actual cash outlay in the analyzed period, once the revenue from Used Cars is reinvested in the purchase of new vehicles for the Rental Operations.


  • CCB: Bank Credit Note.


  • CDI: Interbank Deposit Certificate.


  • Covenants: These are items in the loan and financing agreements created to protect the creditor’s interest. These items establish conditions that limit the degree of leverage of a company.




  • Debentures: Debentures subject to public distributions made under the Offer.


  • Depreciation of vehicles: it is calculated by the difference between the purchase price of the car and the Company’s estimate for its selling price at the end of the contract, after deducting the provision for selling expenses. Each company in the industry has its own metrics for calculating depreciation per vehicle. The higher the value, the more conservative the calculation methodology is.




  • EBITDA and Adjusted EBITDA: Earnings before interest, taxes, depreciation and amortization expenses, added by the income from the sales of vehicles. Adjusted EBITDA is calculated by disregarding non-recurring effects on the Company’s business and is used to measure the cash generation potential in the end activity and determines the evolution of productivity and efficiency over the years.


  • EBITDA, EBIT and Net Margins: as a metric for the Car Rental industry, these margins are calculated by dividing the total EBITDA, EBIT and Net Income by the Rental Net Revenue (or the Total Net Revenue – Net Revenue of Used Cars).


  • Equity Method: This method consists in updating the book value of the investment to the amount equivalent to the equity interest of the investing company in the shareholders’ equity of the investee, and in recognizing its effects in the statement of income for the year.




  • Fleet Management: long-term rent contracts – minimum of 12 months – of vehicles exclusively destined to the B2B segment (Business-to-Business).




  • Number of daily rates: total daily rates contracted by customers. It is calculated by multiplying the average rented fleet by the total number of days included in the analyzed period.




  • Occupancy Rate: is the percentage of the average rented fleet over the average operating fleet.


  • Operational Fleet: Includes fleet cars from the registration period to the time they are available for sale.




  • Rent-a-Car: covers the traditional rental of vehicles for the B2C (Business-to-Consumer) and the B2B (Business-to-Business) segments.


  • ROE (Return on Equity): Measures the ability to aggregate value of a business from its own resources and investor money. The annualized ROE is calculated using 2Q18 recurring net income divided by the monthly average of shareholders’ equity adjusted for the deduction of the goodwill generated by the mergers with Auto Ricci and Unidas and the addition of the equity valuation adjustment (Shareholders’ Equity).


  • ROIC (Return On Invested Capital): measures the return generated as a percentage of the capital invested. For the calculation of the annualized ROIC, we consider the NOPLAT of 2Q18 (EBIT net of IR) divided by the average of the invested capital, which in turn considers the sum of the balances of fixed assets, inventories and accounts receivable, subtracting the balance of accounts payable (Suppliers). Finally, we annualize the 2Q18 result as this is the first quarter in which the recurring accounting results of net income and EBIT consider Unidas’s results on a consolidated basis.