4Q20 and 2020 Earnings Results

March 11, 2021

2020 was transformational for SIMPAR and its Subsidiaries

The pandemic tested and proven the resilience and fundamentals of our companies and evidenced the capacity of our managers

We did not lose focus on the execution and quality of the services provided to our customers, preserving the health of our people

Balance sheet strength of all of our subsidiaries, which have their capital structures prepared to operate in markets with high growth potential, with lower financial costs and longer terms

We completed strategic movements with impact on sustainable value creation for

SIMPAR's shareholders

Strategic Movements Concluded in 2020

Corporate Reorganization

Approval of minority shareholders voting unanimously

SIMPAR started to operate as a holding company for all its subsidiaries

New cycle of development of the subsidiaries

Expansion of participation in the new vehicle transportation sector

IV JSL acquires

Transmoreno

Cross-selling opportunities

October/20

II JSL IPO

Created as the largest road logistics company in Brazil

Optimization of capital structure for new organic and inorganic growth cycle

V CS Brasil revisits its portfolio of clients and services

EBITDA growth of 18.1% YoY, with a margin of 49.3% (+10.4 p.p. vs 2019)

Light vehicles' fleet management grew 14.8% YoY, contributing to 83% of the EBITDA in 2020

CS Brasil wins two auctions of port concessions:

Long-term contracts for the provision of services and positioning in strategic sectors in Brazil

December/20

September/20

III JSL acquires

Fadel

One of the leading urban distribution companies in

Brazil

Increased participation in the beverage, food and consumer goods sectors

August/20

4Q20

Gross Revenue:

All-Time High R$3.0 bn | +3.0% YoY

2020

Gross Revenue :

All-Time High R$10.9 bn | +1.3% YoY

Adjusted EBITDA1 :

All-Time High R$700 mn | +14.5% YoY | 33.5% margin²

Adjusted EBITDA1 :

All-Time High R$2.3 bn | +9.6% YoY | 33.4% margin²

Adjusted Net Income1 :

All-Time High R$215 mn | +78.2% YoY | 8.1% margin

Adjusted Net Income1 :

All-Time High R$522 mn | +66.8% YoY | 5.3% margin

Leverage (Net Debt/EBITDA):

Reduction from 3.6x in 2019 to 3.5x in 2020 even with a Net Capex of R$2.9 billion in the period

Average Term of Net Debt:

Increasing from 4.1 years to 8.5 years³

Notes: (1) Disregards the impairment realized in 1Q20 and the reversal of impairment realized in 4Q20 by Movida; (2) Margin as a percentage of Net Service Revenues; (3) Considers the liability management performed at the beginning of 2021, which raises the net debt maturity from 4.3 years in 2020 to 8.5 years

SIMPAR ready to support a new development cycle with a solid culture and people aligned with our values Direct, control and, if necessary, support the execution of the business plans

(R$ million)

2020

Net Rev. Serv.

1,338.9

EBITDA

638.9

Net Income

179.2

Rental and sale of Trucks, Machinery and Equipment

(R$ million)

2020

Net Rev. Serv.

670.2

EBITDA

330.4

Net Income

68.6

Services for public sector and mixed economy

(R$ million)

2020

Net Rev. Serv.

609.6

EBITDA

37.7

Net Income

8.7

Authorized dealers of light vehicles

(R$ million)

2020

Net Rev. Serv.

45.4

EBITDA

16.2

Net Income

6.9

Leasing, freight payment and financial services

(R$ million)

2020

Net Rev. Serv.

1,645.4

Adj. EBITDA

894.9

Adj. Net Income

233.6

Rental of light vehicles

Notes: (1) Positions held directly in the individual by members of the Simões Family, Board Members and Treasury Shares; (2) Positions held directly in the individual by members of the Simões Family, Board Members, Treasury Shares and JSP Holding

Net Revenue

EBITDAEBIT

Net Income

Notes: (1) Margin as a percentage of Net Service Revenues; (2) Disregards the impairment realized in 1Q20 and the reversal of impairment realized in 4Q20 by Movida

Indebtedness: SIMPAR Consolidated Proforma

Emission of Sustainability-Linked Bonds (SLB)

SIMPAR: the first SLB of the industry in the world on 01/14/21

SizeTermGHG¹ reduction target

US$625 mn

2031

15% until 2030

Movida: the first SLB of the car rental industry in the world on 01/28/21

US$500 mn

2031

30% until 2030

SIMPAR: the first SLB in reais settled in dollars from Brazil on 02/10/21

R$450 mn

2028

7.8% until 2025

∑ R$9.1 billion

Leverage Indicators on December 31, 2020

Gross Debt Amortization Schedule on December 31, 2020

(Including Sustainability-Linked Bonds)

Average Cost of Net Debt after Tax (p.a.)

Instrument

Indicator

Index

Covenants2

Concept

Debentures,

Net Debt / EBITDA-A

1.7x

Max 3.5 x

Maintenance

CRAs and

NPs

EBITDA-A / Net Interest

13.5x

Min 2.0x

Maintenance

Bonds

Net debt / EBITDA

3.5x

Max 4.0x

Incurrence

Notes: (1) Greenhouse Gases; (2) EBITDA for leverage purposes disregards the effects of impairment and includes the EBITDA LTM of Fadel and Transmoreno, following the methodology contained in the covenants of debts issued

~95% of assets base is unencumbered

Breakdown of Capex 2020 by Asset Type

4Q20 Capex by Company

2020 Capex by Company

Return and Leverage

ROIC Subsidiaries 2020

ROIC SIMPARLeverage Subsidiaries 2020

Leverage SIMPAR²

Notes: (1) Adjusted effective tax rate disregarding the write-off of deferred tax credits on tax losses totaling R$38 million within the scope of the corporate reorganization; (2) EBITDA for leverage purposes disregards the effects of impairment and includes the EBITDA LTM of Fadel and Transmoreno, following the methodology contained in the covenants of debts issued

Gross Revenue of R$986.0 million in 4Q20, +13.2% vs 3Q20 and 11% higher than 4Q19

Net Income of R$37 million in 4Q20, +18% YoY, given capital structure optimization and operating margin improvement

Combined acquisitions of Fadel, Transmoreno, TPC¹ and Rodomeu¹ would add R$1.1 billion to 2020 Net Revenue

RAC: Record occupancy rate of 78.9% in 2020 and record R$2,268 in revenue per car in 4Q20

GTF: Final fleet of 47.2 thousand cars, with addition of 8.5 thousand in 2020 and record volume of 3.6 million daily rentals in 4Q20

Used Cars Sales: Growth of +11.4% in the average ticket YoY in 2020, with record of R$50,100 in 4Q20 and an EBITDA margin of 11.7% in 4Q20

Notes: (1) The conclusion of the transaction is subject to compliance with the obligations and conditions precedent usual for this type of transaction, including the approval of the Administrative Council for Economic Defense - CADE; (2) Net Income from logistics operating activity does not consider the treasury segment, which includes debts issued for investment in other companies of the group when JSL S.A. acted as a holding company. Consolidated net income including the treasury segment totaled R$30.5 million in 4Q20 and R$41.0 million in 2020; (3) Margin as a percentage of Net Service Revenues

Growth of 15.1% in GTF Net Revenue from Services in 4Q20 and 10.7% in 2020 compared to previous year

35.3%¹ increase in Operating Income in 2020 versus 2019, disregarding non-recurring result of divestments in 4Q19

Net Income increased 49.2%¹ YoY in 4Q20 and 3.5%¹ YoY in 2020, despite higher net debt due to corporate reorganization

Notes: (1) Disregards the non-recurring result of the disposal accounted for by the divestiture of the concession of a municipal transport line in November 2019, whose positive impact was R$14.9 million on EBIT and EBITDA and R$9.8 million on Net Income for 4Q19 and 2020; (2) Margin as a percentage of Net Service Revenue

Starting 2021

Bonds issued equivalent to R$6.7 billion

SIMPAR: US$625 mn | 10 years

R$450 mn | 7 years

Movida: US$500 mn | 10 years

Extending the average term of the Net

Debt from 4.3 to 8.5 years

Commitment to reduce Greenhouse

Gas Emissions

I Movida acquires Vox¹

GTF Light Vehicles company

Fleet: 1.8 thousand

Strengthens Movida's GTF in specific market niches

February/21

January/21

V Evaluation of Proposal for Integration of CS Frotas by Movida

Consolidate the activity of Light VehiclesGTF

of the SIMPAR group in Movida

Growth and value generation agenda for

Movida and SIMPAR shareholders

After consideration by the independent board

members of Movida and SIMPAR, it will be

delegated to the minority shareholders of

Movida

II Vamos IPO

Primary funding of R$890 million and secondary funding of R$415 million

Strengthens its capital structure and prepares it to operate in a market with high growth potential

VI JSL acquires Rodomeu¹

Road transportation of highly complex cargo

Entering into the compressed gases segment and higher scale in the transportation of machinery and equipment

III JSL acquires TPC¹

Logistics operator with focus on warehousing and logistics managementAdds new sectors and customers, such as health care, cosmetics and telecom

Differentials in fullcommerce and last mile

Notes: (1) The conclusion of the transaction is subject to compliance with the obligations and conditions precedent usual for this type of transaction, including the approval of the Administrative Council for Economic Defense - CADE

Strategic Opportunities

Our goal is to capture opportunities with agility, governance and motivated people to expand diversification and ensure the group's sustainable development

New cycle of sustainable growth organically and through acquisitions, leading the consolidation of the sector, seeking people and processes that contribute to offer better services to our customers and to the development of results

Grow profitably due to unique positioning with scale for purchase and capillarity for maintenance and sale of heavy assets, with the purpose of continuing leading the development of the sector in Brazil

Growth driven by asset ownership replacement use, proximity to customers, agility and innovation, meeting the growing demand for new products and markets

Grow in the provision of services based on long-term contracts with a focus on resilient revenues, positioning in key sectors in Brazil and preserving capital discipline

Expanding the sale of vehicles and offer of after-sales services of dealerships, as well as insurance through Madre

Corretora, with strong synergy with SIMPAR's other businesses

To become the main means of payment of the cargo transportation ecosystem and app drivers in Brazil, as well as to expand the leasing offer to customers of the group's dealerships, contributing to the loyalty of its customers

Acknowledgment and Disclaimer

THANK YOU!

Disclaimer

This Earnings Release is intended to detail SIMPAR S.A.'s financial and operating results in the third quarter of 2020.

Some of the statements contained herein constitute additional information that has not been audited or reviewed by the auditors and is based on Management's current opinion and prognoses. Consequently, there may be material differences between said statements and the Company's actual future results, performance and events. Actual results, performance and events may differ substantially from those expressed or implied by said statements as a result of various factors, including the general and economic situation in Brazil and other countries, interest, inflation and exchange rates, changes in laws and

regulations, and general competitive factors (at global, regional or national level). Consequently, Management accepts no responsibility for the conformity or accuracy of the additional information in this report that has not been audited or reviewed by the auditors. Said information should be examined and interpreted in an independent manner by shareholders and market agents who could carry out their own analyses and reach their own conclusions regarding the results disclosed herein.

Investor Relations

Tel:

+55 (11) 2377-7178

E-mail:

ri@simpar.com.br

Website:

ri.simpar.com.br

Attachments

  • Original document
  • Permalink

Disclaimer

Simpar SA published this content on 11 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2021 16:52:01 UTC.