Strategy and Competitive Advantages

Strategy

The key elements of Unidas’ strategy are:

Continue to grow with focus on profitability, operational efficiency and excellence in customer care. We have developed our business model with efficiency, profitability and quality in customer service. We believe that we benefit from Enterprise‘s expertise as the Company‘s franchisor and shareholder.

Therefore, the main initiatives of our strategy are:

  • take advantage of growth opportunities for the RAC segment, expanding our service network, and leveraging the risk-return ratio with our current partnerships; as well as seek the development of new commercial partnerships to increase RAC revenues;
  • expand our customer portfolio in our Fleet Outsourcing segment, continuing to expand our operations to different regions, sectors and market segments and offering our services to customers with needs of fleets of differing sizes;
  • focus on the quality of service and customer care, increasing investments in training our employees and communication technologies in our stores; as well as new technologies that improve customer service;
  • provide more efficient and agile services through the use of new technologies in the Company’s processes and operational activities;
  • identify and take advantage of opportunities in the market aimed at developing customized solutions, such as the partnership we made in 2016 with Nissan, for the launch of the Nissan Kicks; and
  • take advantage of our know-how and online marketing experience to consolidate and improve our position in direct sales to individuals.

Furthermore, we believe we are well positioned to take advantage of any opportunities regarding the strategic acquisition of other car rental companies in the markets in which we operate or in which we are interested in operating. We believe the car rental market is fragmented and we have experience in this type of operation and also have the financial strength to take advantage of opportunities.

Maintain financial discipline and strength. Continue to adopt what we believe to be our strict capital discipline, reinforcing and introducing practices that seek to improve our operational efficiency, so that we can continue to grow with profitability and efficiency, maximizing return on capital employed without affecting our financial strength.

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Competitive Advantages

Unidas has the following competitive advantages:

Complementary and synergistic business model, with gains in scale and reduction and control of costs. We have developed a business model that gives us resilience in periods of low economic activity, with better predictability of revenues from the Fleet Outsourcing segment, while our RAC segment provides us with greater growth opportunities in periods of higher economic activity. We have also developed the Used Car segment, through which we sell our vehicles, allowing us to renew our fleet in an efficient and flexible way.

Strong and widely recognized brand. The strength and recognition of the "Unidas" brand in the Brazilian vehicle leasing and fleet outsourcing sector is a reflection of the quality of our customer service. The excellence of our services can be proven by the rating of our level of service given by our customers, on the "Reclame Aqui" website, as well as by some of the awards we received in 2016, such as: 1st place in the "Corporate Governance" category and 3rd place in the "Services" category of the Época Negócios 360º Prize, among others.

High capillarity of our RAC business. The high capillarity of our service network is the result of the presence of our own stores in the country’s main airports and in large Brazilian cities, as well as the adoption of a model of franchises usually located in complementary regions to our own stores.

Scale and know-how in the Fleet Outsourcing business. We have been operating in the Fleet Outsourcing market for almost 20 years, having built a very wide and diversified customer portfolio. Therefore, our customer base is spread across all regions of Brazil, with different demands - from smaller fleets, with approximately 5 vehicles, to the most robust, with more than 500 vehicles - and operating in different markets and sectors of the economy, resulting in a portfolio with a very diversified risk.

Commercial and strategic partnerships. Currently, we have several partnerships, such as:

  1. Commercial Partnerships: through which we offer special deals to the customers of our commercial partners, such as insurance companies, telecommunications companies, airlines, payment card issuers and financial institutions.
  2. Strategic Partnerships: we highlight the partnership we have with Enterprise, the largest vehicle leasing group in the world in terms of total fleet size, revenue and number of employees.

Financial strength with excellence in management. We adopt strict financial discipline in order to generate value for our shareholders. Based on our more than 31-years experience in the Brazilian vehicle leasing and fleet outsourcing sector, as well as the know-how of our shareholders, we have developed a business model that enables us to achieve gains in scale in the acquisition and sale of vehicles and continuously reduce our operating costs.