JSL announces R$2.2 billion in new Logistics contracts and transformation of Movida RAC

Mogi das Cruzes, June 16 2016 – JSL (BM&FBOVESPA: JSLG3 and Level 1 ADR: JSLGY)

About the Company

JSL S.A. is the company with the broadest portfolio of logistics services in Brazil and the leader in its segment, having recorded a gross revenue of R$6.5 billion in 2015. With 60 years of experience, it has more than 210 branches in the Brazilian territory in addition to four countries of Mercosur. The Company provides customized services in order to add value to its clients’ production chains focusing on streamlining processes, from the transportation of cargo to the complete outsourcing of logistics chains. JSL also provides leasing services and has a network of light and heavy vehicle dealerships. At the end of 2013, pursuing the ongoing diversification of its business, the opportunity arose to enter the daily car rental business and JSL acquired Movida Rent a Car with the proposal to innovate customer relations in this market.

Logistics New Contracts

The Company has recorded solid growth based on its business model, service DNA and focus on clients, who in moments of crisis, prioritize the revision of processes in order to reduce costs so they can focus their attention and capital on their core business. Based on this, the Company entered into new contracts totaling R$2.2 billion in the Logistics segment.

Features of the new contracts

  • Contract terms of up to 7 years
  • 59% of which negotiated with existing clients (cross selling)
  • 41% of which negotiated with new clients
  • Total investments of approximately R$572 million, R$347 of which in 2015 and R$225 million in 2016

Movida’s Transformation

Movida grew substantially throughout 2015 due to market innovations and its capacity to focus on clients’ needs. Its activities are divided into two business units, rent a car (RAC) and fleet management and outsourcing (GTF). Throughout 2015, 17,918 cars were added to its RAC fleet, expanding it from 19,208 (Dec/2014) to 37,126 cars (Dec/15). As shown in the graph below, annualizing revenue based on the operating fleet at Dec/15 (32,137) and assuming the average revenue per vehicle of 2015, we would have additional revenue from RAC of R$202 million (+44%). In GTF, based on new signed contracts in 2015, we would have additional revenue of R$39 million (+15%). The combination of RAC and GTF would result in an increase of 34% in Movida’s revenue from services (this projected additional revenue is not included in the R$2.2 billion revenue from new Logistics contracts).

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