Movida Participações S A : Demonstrações Financeiras em Padrões Internacionais - Versão em Inglês

(A free translation of the original in Portuguese)

QUARTERLY

INFORMATION

1Q24

(A free translation of the original in Portuguese)
QUARTERLY INFORMATION 1Q24
Contents
Management Report	3
Statements of financial position	27
Statements of income	28
Statements of comprehensive income	29
Statements of changes in equity	30
Statements of cash flows - indirect method	31
Statements of value added	32
Notes to the parent company and consolidated financial statements	33
Independent auditor's report on the parent company and consolidated financial statements	104
Monitoring of projections and estimates disclosed by the Company	106
Statement of the Statutory Audit Committee	107
Statement of the Executive Board on the parent company and consolidated financial statements	108
Statement of the Executive Board on the Independent Auditor's Report	109

ADJUSTED NET PROFIT. OF R$62

MILLION IN 1Q24 WITH RECORD EBITDA OF R$1.059 BILLION AND EXPANSION IN VALUE GENERATION WITH ROIC OF 10.5%

Net revenue All time high!	EBITDA All time high!
R$ 3,022 bn	R$ 1,059 bn

+11.8% +21.0%

	EBIT			Net profit
	All time	high!
R$ 49 mm
	R$ 612 mm
+26.0%					+110mm
	Adjusted net profit¹			ROIC
	R$ 62 mm			10.5%
	+124mm			+2.5p.p.
			vs. 2023

NOTE: 1Q24 results consider a positive effect of R$23 million (R$15 million after IR) from the reversal of the bonus payment provision due to the failure to achieve the targets for the year 2023.

¹Adjusted net profit: a) In 1Q24, disregards the negative effect of R$13mm after IR from the end of swap contracts, related to bond operations abroad, which are being recognized monthly in the result until the end of the bond contract. The cash effect of this operation occurred in Nov/23, and the recognition in the Income Statement of this amount, recorded under the heading "other comprehensive income" in shareholders' equity, is being made in financial expenses. b) In 1Q23, disregards the positive net effect of bond repurchase operations on financial expenses for the period (R$83mm after IR).

Earnings Release 1Q24

HIGHLIGHTS BY BUSINESS LINE

Fleet Management and

Outsourcing (GTF)

Rent-a-Car

(RAC)¹

Prioritization in capital allocation in GTF

Net Revenue of R$720 million, with growth of 33.7% vs. 1Q23;

EBITDA of R$535 million, expanding 48.0% compared to 1Q23; EBITDA margin of 74.3%, growth of 7.2 p.p. vs. 1Q23;

Total fleet of 136 thousand cars in GTF, with growth of 18.3% vs. 1Q23;

58% of the Company's gross fixed assets focused on GTF compared to 56% in 2023.

RAC: Start of recomposition of daily price and yield

Net Revenue of R$752 million, with growth of 9.5% vs. 1Q23;

EBITDA of R$483 million, an increase of 13.5% compared to 1Q23;

EBITDA margin of 64.3%, growth of 2.3 p.p. vs. 1Q23;

Total fleet of 105 thousand cars in RAC, growth of 10.4% vs. 1Q23;

Eventual tariff with growth of 12% vs. 1Q23.

Productivity gain in Used Cars

Used car sales

Net Revenue of R$1.5 billion, an increase of 4.3% vs. 1Q23; 23.2 thousand cars sold, growing 18.6% compared to 1Q23; EBITDA margin of 2.5%, down 3.4 p.p. vs. 1Q23;

36 cars per store sold at retail/month in 1Q24, an increase of 29% compared to 2023.

¹Considers only Brazil operation

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Earnings Release 1Q24

We are very excited to release the results for the beginning of 2024, where we bring great deliveries such as our Company's record revenue, EBITDA and operating margins. I thank our Customers, Suppliers, Shareholders and, in a special way, our People, more than 6 thousand employees who, with commitment and determination, will be responsible for even greater achievements this year. In 1Q24, our adjusted net profit was R$62 million (R$49 million in accounting net profit), reversing last year's loss, and the annualized ROIC was 10.5%, which increased 2,5 p.p. compared to 1Q23 2023 and was 1.8 p.p. higher than our average cost of debt (post-tax).These results, combined with a new level of operational efficiency, show a relevant change in level compared to 2023 and the beginning of the cycle of generating value for shareholders.

We ended the quarter with a total fleet of 246,000 vehicles and net revenues of R$3.0 billion, up 11.8% from 1Q23. For the first time in our history, we exceeded R$1.0 billion in EBITDA, an increase of 21.0% over the same period. Rental results expanded further, with net revenues of R$1.5 billion, up 20.6% over 1Q23, and EBITDA of R$1.0 billion, up 29.4% over the same period, while our fleet grew just 15.4%. This shows the strength of our efficiency gains, as we were able to optimize the generation of results compared to our invested capital. Our consolidated EBIT also increased by 26% and reached R$612 million in 1Q24, further boosting profitability levels.

As a demonstration of our commitment to generating value for our shareholders, we have formalized the operational projections that are part of our focus on executing our strategic plan for 2024. Our priority work fronts: i) restoring the RAC daily rates, ii) increasing the predictability and stability of results by increasing the representativeness of the GTF segment and iii) maximizing productivity in the Used Car segment. That's why we selected key indicators to monitor more closely, such as RAC yield, sales per store and discounts in relation to FIPE for used vehicles, as well as GTF representation in relation to fixed assets and, in addition to having already demonstrated progress in all of them in 1Q24.

I would like to highlight the results in Fleet Management and Outsourcing (GTF), where we saw significant growth with the signing of new contracts, demonstrating the continuing trend of high market demand. We ended 1Q24 with a total fleet of 136,000 cars, an increase of 18.3% over the year. Our contracts represent a backlog of future revenues of R$5.8 billion, and at the end of the quarter we had more than 23,000 cars to deploy, which will continue to drive earnings growth in the coming quarters. The average monthly revenue negotiated for the cars we have to deploy is R$3,500, which generates an estimated revenue potential of R$445 million per year in the segment.

The GTF net revenue was R$720.4 million with EBITDA of R$535 million, up 33.7% and 48.0%, respectively year- on-year, resulting in an EBITDA margin increase to 74.3% for the year. The GTF EBIT represented 53% of the Rental EBIT result in 1Q24 and we expect to continue to increase the representation of long-term products, bringing more predictability and resilience to the consolidated results. The total GTF fleet in 1Q24 was 135,600 cars, a net increase of more than 21,000 cars or 18.3% compared to 1Q23.

In 1Q24 we implemented a series of measures to increase operational efficiency and improve RAC's profitability. Considering only the results of the Brazil operation, net revenue in 1Q24 was R$752 million, growing 9.5% compared to 1Q23, EBITDA totaled R$483 million, growing 13.5% in the same period, with an EBITDA margin of 64.3%. The total RAC fleet reached 110 thousand cars and we maintained discipline in managing the RAC fleet, with a reduction of 3.1 thousand cars in the fleet compared to 4Q23, after the end of the high seasonality.

We started the price recovery process for the "eventual" product and recorded a 12% increase in the tariff compared to the previous year, significantly improving the return and we will continue over the next few quarters with the work of restoring the occasional tariff. Work on the price of the "monthly" rental product began in April and we will have the results of this initiative from the second quarter. In this way, we recorded an important advance in profitability, demonstrated by the growth in yield from 3.5% in 2023 to 3.9% in 1Q24, represented by the consolidated tariff of R$130 per day. With ongoing actions to restore occasional and monthly product prices, we are confident of achieving the year's guidance of 4.2% per month yield.

5

Earnings Release 1Q24

In Used Cars Sales we achieved a record volume of 23,200 cars sold in the quarter with a monthly average of 36 cars sold per store, generating revenues of R$1.5 billion in 1Q24. The EBITDA margin was 2.5% in 1Q24, also demonstrating our success in calculating the residual value of our cars. We reached the discount levels practiced compared to the FIPE table in the sale of pre-owned cars of 5.3% at retail and 16.1% at wholesale in 1Q24, already exceeding the levels of our commitments (guidances) in the strategic planning for 2024.

The depreciation rate of our fleet has returned to a more normalized level, with an annualized value per car of R$6,382 in RAC and R$7,585 in GTF, bringing stability to margins and allowing for a better understanding of the profitability of the business.

The annualized ROIC for 1Q24 reached 10.5%, an increase of 2.5 p.p. compared to the ROIC for 1Q23 and exceeding the cost of debt by 1.8 p.p. (after tax). In April and May 2024 we went even deeper into managing our debts with the issuance of a new bond in the foreign market of US$500 million (R$2.5 billion) and a bilateral extension of R$1.4 billion. Operations totaled R$3.9 billion in initiatives with a cost in reais of CDI+2.3% p.a. and we will use these resources to prepay shorter debts that cost on average CDI+2.8% p.a. In addition to favoring the future maturity schedule, it will also generate a reduction of ~R$16.5 million per year in financial expenses. Therefore, we continue to focus on establishing a new level of funding costs for the Company, contributing to the generation of value with an increase in the spread in relation to our returns (ROIC).

We ended 1Q24 with a solid cash position of R$3.2 billion, which puts us in a comfortable position to continue executing our strategic plan. Better payment terms with the OEMs helped improve the Company's working capital and cash flow dynamics in 1Q24, which allowed us to keep the sum of our net debt and our outstanding balance with suppliers stable. Leverage ended the quarter virtually stable at 3.19x net debt/EBITDA, a level we consider healthy in the current scenario - if we annualized the recurring EBITDA of 1Q24, the leverage would be 2.85x.

These indicators give us the confidence to continue to work with great discipline on the implementation of our 2024 Strategic Plan and to focus on the further development of operational excellence, while extracting the maximum value from our assets and promoting the creation of adequate value for our shareholders with the satisfaction of our customers in an equation that guarantees the sustainable and perennial development of our business.

I would like to thank our employees for their achievements and for all that we will continue to build together. To our shareholders, suppliers and customers, thank you very much for your trust.

Gustavo Moscatelli | CEO

6

Earnings Release 1Q24

MAIN INDICATORS

Financial Highlights (R$ million)	1Q24A	4Q23A	Var% QoQ	1Q23A	Var% YoY
Gross Revenue	3,219.9	2,686.0	20%	2,871.6	12%
Net Revenue	3,021.6	2,493.4	21.2%	2,703.2	11.8%
Net Revenue from Rentals	1,495.2	1,339.6	11.6%	1,239.7	20.6%
Net Revenue from the Sale of Assets	1,526.4	1,153.8	32.3%	1,463.5	4.3%
Gross Profit	932.1	722.1	29.1%	818.1	13.9%
Gross Margin¹	62.3%	53.9%	+8.4 p.p	66.0%	-3.7 p.p
Gross Margin²	30.8%	29.0%	+1.9 p.p	30.3%	+0.6 p.p
EBITDA	1,059.5	888.3	19.3%	875.3	21.0%
EBITDA Margin¹	68.3%	63.3%	+5.0 p.p	63.6%	+4.6 p.p
EBITDA Margin²	35.1%	35.6%	-0.6 p.p	32.4%	+2.7 p.p
EBIT	611.6	372.4	64.2%	485.3	26.0%
EBIT Margin¹	40.9%	27.8%	+13.1 p.p	39.1%	+1.8 p.p
EBIT Margin²	20.2%	14.9%	+5.3 p.p	18.0%	+2.3 p.p
Net Income	48.6	(588.3)	-108.3%	21.0	131.4%
Net Margin¹	3.3%	-43.9%	+47.2 p.p	1.7%	+1.6 p.p
Net Margin²	1.6%	-23.6%	+25.2 p.p	0.8%	+0.8 p.p
Adjusted Net Income	61.7	(104.5)	-159.0%	(61.9)	-199.7%
Adjusted Net Margin¹	-13.8%	20.3%	-34.0 p.p	15.9%	-29.6 p.p
Adjusted Net Margin²	-3.8%	8.2%	-12.0 p.p	4.1%	-7.8 p.p
Operational Highlights	1Q24	4Q23	Var% QoQ	1Q23	Var% YoY
RAC Operational Data
Total fleet - end of period	110,091	113,150	-2.7%	98,228	12.1%
Number of RAC Service Points	254	253	0.4%	243	4.5%
Occupancy Rate (%)	80.2%	82.0%	-1.8 p.p	78.4%	+1.8 p.p
Daily Rentals Average (R$)	130	126	3.3%	126	3.4%
Number of Daily Rentals (thousand)	6,414	5,946	7.9%	6,219	3.1%
Average monthly gross revenue per operational average fleet (R$)	3,105.8	3,083	0.7%	2,939	5.7%
GTF Operational Data
Total fleet - end of period	135,628	130,781	3.7%	114,617	18.3%
Number of Daily Rentals (thousand)	10,257	9,844	4.2%	8,823	16.3%
Average monthly gross revenue per operational average fleet (R$)	2,380	2,275	4.6%	2,041	16.6%
Seminovos Operational Data
Number of Used Cars Stores	89	88	1.1%	90	-1.1%
Number of Cars Sold	23,249	17,253	34.8%	19,610	18.6%
Average Price of Cars Sold (R$)	66,943	68,176	-1.8%	75,132	-10.9%

Earnings Release 1Q24

1. Strategic Priorities 2024

Rent-a-Car (RAC) - Beginning of the recomposi on of the daily price and yield

• As the main strategy for improving the segment's profitability, the Company focuses on recomposing the daily price (yield) and believes it is possible to expand the average monthly yield of the RAC operational fleet to 4.2% per month in 2024, already having reached 3.9% per month in 1Q24.

Used cars - Productivity Gain

• With a focus on maximizing productivity in the Used Cars segment and enhancing margins, the Company believes it is possible:
  o Increase sales of used vehicles at retail to an average of 34 cars per store per month, which would represent an increase of 21% compared to the 2023 average, having already reached 36 cars per store in 1Q24.
  o Reduce the discount applied against the FIPE table in the sale of used cars to 5.5% at retail and 16.5% at wholesale in 2024, having already reached 5.3% at retail and 16.1% at wholesale in 1Q24.

8

Earnings Release 1Q24

Fleet Management and Outsourcing (GTF) - Prioritization in capital allocation

• In order to increase the predictability and stability of results and boost the Company's consolidated profitability, Movida believes it is possible to increase the representation of the GTF segment to 60% of invested capital by the end of 2024, prioritizing capital allocation in this segment, having already reached 58% in 1Q24.

9

Earnings Release 1Q24

2. Movida Consolidated

Net revenue increased by 11.8% compared to the same period of the previous year, reaching R$3.022 billion, mainly due to the net increase of the fleet and the expansion of the average tickets for Fleet Management and Outsourcing (GTF) and Rent-A-Car (RAC) contracts. It is important to note that the evolution of the rental income (GTF+RAC) was even greater, 20.6% over the previous year and 11.6% over the previous quarter.

The following chart shows the evolution of Movida's consolidated EBITDA, which amounted to R$1.1 billion in 1Q24, an increase of 21.0% over the same period last year. Rental EBITDA (GTF+RAC) increased by 29.4% compared to the 1Q23 result, which is the main indicator of the sustainability of the Company's operating results.

Rental EBITDA margin, calculated as Rental EBITDA divided by Net Rental Revenue, was 68.3% in 1Q24, an increase of 4.7 p.p. compared to the same period last year and 5.0 p.p. compared to the previous quarter.

The following graph shows the evolution of EBITDA margins from rental activities since 2016. In 1Q24 we recorded the best operating results since the IPO. This level of margins reiterates the assertiveness of the actions implemented to gain efficiency and reflects a significant improvement in the use of invested capital and the actions to reduce costs and expenses that we have carried out over the last year.

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