Glossary

Consists of the cost to maintain minimum cash position. This is the difference between the average rate of fundraising and the average rate of investment.

Financials have been recalculated to exclude the impact of incurred one-time costs related with the acquisition of Hertz Brazil and the integration of 20 franchised branches in 2017.

It is the number of rental days of the period divided by the fleet available for rental multiplied by the number of days of the period and therefore, it does not include cars being prepared or being decommissioned.

Financial transactions carried out to hedge exchange rate and interest rate risks.

non-recurring costs and expenses.

EBIT divided by the rental net revenues.

EBIT is the net income of the period added by the income tax and net financial expenses.

Depreciation is calculated based on the expectation of the future sale price net of the selling expenses. The amount to be depreciated is the positive difference between the acquisition price of the vehicle and its estimated residual value. Depreciation is calculated as long as the assets’ estimated residual value does not exceed its accounting value. Depreciation is recognized during the estimated life cycle of each asset. In the Car Rental Division, depreciation method used is linear. In the Fleet Rental Division, depreciation is recorded according to the sum of the years’ digits (SOYD) method, which better reflects the consumption pattern of the economic benefits that decrease during the cars’ useful life. The residual value is the estimated sale price net of the estimated selling expense.

EBITDA divided by the net revenues.

Compounded annual growth rate.

Capital expenditure.

consists of the acquisition value of vehicles, depreciated up to the date of sale, less the technical discount. The technical discount is the discount given to the buyer for any required repairs that were not made. These repair costs are recorded as a charge to operating costs and as a credit to cost of cars sold.

Depreciation is calculated based on the expectation of the future sale price net of average discount and selling cost. The amount to be depreciated is the positive difference between the acquisition price of the vehicle and its estimated residual value. Depreciation is calculated as long as the assets’ estimated residual value does not exceed its accounting value. Depreciation is recognized during the estimated life cycle of each asset. In the Car Rental Division, depreciation method used is linear. In the Fleet Rental Division, depreciation is recorded according to the sum of the years’ digits (SOYD) method, which better reflects the consumption pattern of the economic benefits that decrease during the cars’ useful life. The residual value is the estimated sale price net of the estimated selling expense.

Short and long term debts +/- the results from the swap operations, net of the cash, cash equivalents and short term financial investments. The “net debt” term is a Company’s measure and cannot be compared with similar terms used by other companies.

EBITDA is the net income of the period, added by the income tax, net financial expenses, depreciation, amortization and exhaustions, as defined by CVM instruction 527/12.

Franchiser that can operate as a sub-franchiser in a designated geographical location as indicated by the Company.

In the car rental division it is the number of daily rentals in the period divided by the number of days in the period. In the Fleet Rental is the actual number of cars rented.

Includes the cars in the fleet from the licensing until they become available for sale.

Capital investment in cars acquisition, net of the revenues from selling decommissioned cars.

Tax over industrialized products. In May, 2012 Government announced an IPI tax exemption valid initially up to August, 2012, however, successively extended in 2012. In 2013 IPI tax for compact cars was increased to 2% and was kept at this level until December 2014. On January 1, 2015 the tax was fully reinstated. Those measures aim at incentivizing the automotive industry by stimulating demand, since the tax reduction tends to be passed on to the final consumer.

Car rental to business customers for terms of between one and twelve months, on a monthly basis.

Net operating profit after tax.

Business in which the Company provides insurance companies temporary replacements for cars that are out of service, generally due to accidents or theft.

Return on invested capital.

Term used by the Company to define a car which has a maximum of three years of use.

Car rental pricing system which allows the maximization of profitability.