Localiza Rent A Car S/Adr

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Good afternoon and welcome to the Localiza and Co. webinar regarding the results of the fourth quarter and the year of 2024. With us today are Bruno Lazansky, our CEO, Rodrigo Tavares, CFO, and Nora Lanari, Director of Investors Relations of the company. We would like to inform you that this webinar is being recorded and will be made available at ri.lucaliza.com, where you can find the complete disclosure of results material. This presentation is also available for download on our RI website. For the Q&A session for analysts and investors, we kindly ask you to indicate your interest in participating through the Q&A icon on the bottom of your screens by typing your name, institution, and language. When called upon, a request to activate your microphone will appear on the screen. To submit questions in writing, please use the Q&A icon at the bottom of your screen and fill in your name, institution, before the question. Please note that the values of this presentation are in millions of BRLs and information herein and any forward-making statements that may be made during the video conference regarding Localiza's business outlook projections and operational and financial targets constitute beliefs and assumptions of the company's management, as well as information currently available. Future considerations are not performance guarantees. They involve risks, uncertainties, and assumptions. as they refer to future events and therefore depend on circumstances that may or may not occur. Now I will hand the floor to Bruno Luzansky, the company's CEO, to begin the presentation. Good afternoon. In 2024, we redoubled our focus at executing the company's strategic priorities, and throughout the second half of the year, we began to see consistent results from our initiatives. The year was marked by revenue growth in all of the company's divisions, with 17% in car rental, 25% in fleet management, and 37% in semi-novos. In car rental, We continue the process of price adjustment, which increased by 15.4% in the year, ending the last quarter at 147 million BRLs, reflecting the strength of the brand and commercial excellence of Localiza. We focused the capital allocation on higher return segments. Thus, we reduced the heavy-use fleet by around 25% and improved the global fleet utilization. We highlight that, excluding trucks and heavy-use vehicles, the net revenue in 2024 grew 32.4%. to 32% with a volume of daily rentals growing 13% year-over-year. On the operations front, we expanded our network of decommissioning centers to 13 units, increasing the speed, quality and management of the preparation process, which contributed to improving the channel mix. Seminovals doubled the volume of cars sold in only two years. During the year, we expanded the store network and increased productivity per store. 280,000 cars were sold, which contributed to reducing the average age of the cars sold in the car rental division from 28 to 23 months. As a result, in this year we presented consolidated net revenue of 37.3 billion, EBITDA of 11.9 billion and net income of 1.8 billion with a ROIC spread of 3.1 percentage points, evolving to a spread of 5 percentage points in the second half of 2024. In addition, the year was marked by increased cash generation. from car rentals, contributing to the reduction of our leverage ratios, even with the increase of payment of interest on equity and the repurchase of the company's shares during the year. We continued to improve our customer experience. For example, we doubled the number of 100% digital pickups during the year, launched a new Localiza Mail app with unique features on the market, and transformed the delivery and return journey in fleet rental, all of which contributed to an excellent NPS and a differential in delight. In addition, Localiza was recognized once again as one of the 15 best companies to work for by Great Place to Work. In terms of technology, we completed the ERP update, as well as the migration of 100% of our applications to the cloud, contributing to greater agility, efficiency, and performance of our technology environment. In 2025, we are facing a scenario of rising interest rates and potential slowdown in economic activity and reduced credit availability. In this context, we have defined five priorities for the year. First, scaling up of semi-novos to renew the fleet. Two, re-establishing rental prices, prioritizing revenue growth and ROIC spread. 3. Efficiency in cost and productivity. 4. Optimization of the segment portfolio focusing on more profitable segments. 5. Improving the experience of our customers to increase even more the differentiation of delight. 6. Concluding the process of systemic integration and corporate simplification. These initiatives are crucial for the gradual recovery of profitability levels. We are confident that we will emerge from the current cycle by further expanding our market leadership, competitive advantages, and resuming our growth trajectory with value creation. To present the highlights of the year and the quarter, I will now hand over to our CFO, Rodrigo Tavares. Thank you, Bruno, and good afternoon, everyone.

On page 2 are the highlights of the quarter.