VIX Logística S.A.

VIX Logística S.A. Individual and consolidated

financial information as of

December 31, 2020

(A free translation of the original report in

Portuguese, as filed with the Brazilian

Securities and Exchange Commission

(CVM), prepared in accordance with the

accounting practices adopted in Brazil, rules

of the CVM and of the International Financial

Reporting Standards - IFRS)

Contents Management report Independent auditor’s report in the individual and consolidated financial statements Balance sheets Statements of income Statements of comprehensive income Statements of changes in shareholders’ equity Statements of cash flows Statements of added value Notes to the individual and consolidated financial statements

MANAGEMENT REPORT 2020

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MESSAGE FROM THE BOARD

The year 2020 marked and profoundly changed the lives of all people. It also brought

great challenges to the local and world economy. In 49 years of existence, we have never

experienced a situation like this and we were forced to carry out an intense work of reviewing

our planning and adjusting operations.

We started the year in the same pace seen at the end of 2019 with strong investments

in expanding the Fleet Management and Outsourcing (FMO) and implementing a set of

measures to improve operational efficiency and the revision of the portfolio of contracts in

Dedicated Logistics, which resulted in the highest quarterly net income since 2016, despite the

impact of the new conjuncture in the month of March.

In March, we established a crisis management committee and began to act intensively

in adapting the company to the new scenario. The close relationship and coordination of efforts

with each client was essential to allow a fast resizing and economic rebalancing of operations

which were impacted in different ways.

Notwithstanding, we overcame the impacts of the decision of automakers to halt their

activities and the crisis in the Oil market by adopting fast and effective adjustments. These

adjustments and the sound performance of other sectors which were resilient or even

expanded the pace of their activities, enabled the delivery of a positive result in the most

challenging quarter of the company of our history.

In the third quarter we saw a consistent recovery in demand from the most impacted

areas, and that made us confident that we had surpassed the crisis and emerged from it even

more efficient and competitive than before, registering the highest quarterly result in our

history. Despite being seasonally weak, the fourth quarter maintained the positive pace, and

was also marked by a robust resumption of investments in expansion, after a hiatus during

the most challenging period of the pandemic.

As a result, we ended the year with a surprisingly and yet, very positive result, despite

the sudden change in the scenario. We started to reap benefits from the measures

implemented in the Dedicated Logistics segment since 2019 and reached a new level of

profitability, practically doubling its operating margin. In addition, the flexibility of the asset-

light model used in the Automotive Logistics segment allowed a solid result despite the impact

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of its market during the year. FMO's pace of growth was affected, but it benefited from the

new contracts signed in 2019 and maintained a good performance and the V1, recorded

positive margins for the first time.

On a consolidated basis, total revenues grew slightly and closed at R$ 1.69 billion, as

a result of a resilient service revenue even in a scenario of reduced economic activity combined

with accelerated sales of assets.

EBITDA climbed 21,2% to R$ 424.5 million in the period, with margin expansion both

in the provision of services and in sales. And finally, the modest growth in depreciation, coupled

with debt stabilization and lower interest rates, led to a record net profit of R $ 74.6 million,

an increase of 67.7% versus 2019.

While the results were a positive surprise, the main impact of the pandemic occurred

on investments, which fell by 31.3% to a total of R$ 432.4 million in 2020. On the one hand,

the lower investments led to a reduction in the company's growth rate, but, on the other hand

it also contributed to the strengthening of the capital structure, with a positive free cash flow

of R$ 117.9 million in the period. The leverage ratio as measured by the Net Debt/EBITDA

declined to 2.54x from 3.13x, well below the limits stipulated, thus allowing for a robust

resumption of investments and growth in 2021.

Despite the many unwanted effects of the pandemic, especially the loss of human life,

we acknowledge that it was also an important catalyst for changes and improvement on how

we manage, which made us a lighter, more efficient and competitive company.

We are very grateful to our team of employees, customers and partners for all the

efforts made in this regard and for the results achieved. This is how we start the year in which

we celebrate 50 years of existence: more prepared and confident in relation to the future, and

with a lot of energy to broaden our paths, focused in our mission to move the world with

excellence and respect for people.

Patrícia Poubel Chieppe CEO

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2020 MAIN NUMBERS

Financial Highlights R$ million, except % and LPA 2020 2019

Net revenue 1,694.8 1,689.5 Gross margin 16.4% 14.6% EBIT ¹ 192.3 150.4 EBIT margin 11.3% 8.9% Net income 74.6 44.5 Earnings per share (LPA) 0.88154 0.52606 EBITDA ² 424.5 350.3 EBITDA margin 25.0% 20.7%

¹ EBIT (Earnings Before Interest and Taxes) corresponds to operating income (loss). ² EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): measure of operating performance provided by Earnings Before Interest, Taxes,

Depreciation and Amortization (EBITDA).

Operating Highlights 2020 2019 Number of employees 9,120 11,253 Size of the fleet (unit) 19,488 17,322 Mileage (in millions) 242.4 261.5 Vehicles transported (unit) 230,345 325,504

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COMPANY'S PROFILE

VIX

Leader in its sector of operation, offering customized, efficient and safe logistic solutions.

Specialized in customized logistic solutions, VIX Logistic operates in the rent and management of fleets, transfer services, movement of cargo, automotive logistics and dedicated logistic, with operations from the North to the South of Brazil and also in the Mercosur. Our projects are developed aiming at maximum efficiency of the processes and they are customized to cover the clients’ needs. Currently, our operations cover four business fronts:

Dedicated Logistic We offer dedicated logistic services to a wide range of profiles of cargo and clients, through which we adjust the models of operation proposed to the needs of each client, assessing the operating dynamics and identifying opportunities of improvement through de in loco visits, not limiting our operations to consulting and planning of their operations. We seek to develop intelligent solutions to optimize the cargo logistics of the clients, such as adaptations of vehicles that make the transportation, aiming at carrying a higher volume of cargo, at lower time and under adequate conditions to maintain the integrity of transported volumes and of our operators. We implement solutions that lead to practical results, measurable through the redesign of flows of logistic processes, integration of modals and development of special equipment. We believe that this know-how allows us to operate in the several points of the clients’ supply chain, such as the extraction of inputs, transportation to the industrial units, transportation of passengers, realization of internal movements in industrial parks, waste collection, management of inventory, and storage, rental of machinery and equipment, transfer and distribution of products to the final client and reverse logistics.

Automotive logistics We render automotive logistic services covering the transportation of new vehicles, national and imported, manufactured by the major carmakers renowned in the global scenario to the car dealers. We also provide activities related to such transportation, such as management of yard and storage of vehicles, automotive services, port operations and transportation of

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containers. We are strategically located near the clients’ plants, which gives us flexibility and agility in the rendering of such services.

FMO In the Fleet Management and Outsourcing service, we consolidated our performance after the acquisition of the LS Rental group in 2018. The execution is dimensioned according to the fleet and also offers customization activities, maintenance management, immediate availability, documentation, among other services that exempt the client from all the burdens related to the acquisition of a vehicle, so that the client can focus on its core activity and stop worrying about activities that are not part of the company’s core business. The FMO service also provides an increase in the economy, exempting maintenance costs, taxes, depreciation, insurance, among others. The contracts signed are long-term corporate agreements (between 24 and 36 months), customized according to the client’s reality, in addition to the purchase of vehicles being made according to the success in bids to meet the client’s need. In order to monitor the management of the service offered, we have a robust ERP that provides us with dashboards and management reports, providing a larger database and faster analysis. Aiming to enable the operation, we have an online vehicle sales platform that leads to lower sales costs and the possibility of reaching a larger audience.

V1 In the Greater Vitoria (ES) market, we operate an executive transport service using our app for individuals and companies, called V1. It offers hired drivers, own fleet and excellent service. Moreover, based on the V1 platform, we also offer vehicle subscription and car rental services, in a totally innovative and digital way, which allows vehicles to be withdrawn from strategic points in Greater Vitória.

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VIX IN NUMBERS*

*2020 data

Full coverage

of Brazilian States

R$ 1.7 billion of

net operating revenue

R$ 74.6 million of

net income

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Offer logistic solutions with security and excellence through qualified persons,

aggregating value to the clients and aiming at the business sustainability.

MISSION

Be recognized as the best company in logistic solutions, adding value on ongoing and

sustainable basis.VISION

Ethics: guides our actions and decisionsResults: our commitmentLasting relationships: are appreciated and

encouragedRespect: strengthens our relationsSecurity: always comes in first placeOvercoming: it is what moves us forward

VALUES

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VIX’S CORPORATE AND OPERATIONAL STRUCTURE

*In 2021, the Company changed its corporate structure, after ALAC exercised its sales option, as provided for in the shareholders’ agreement.

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CORPORATE GOVERNANCE

MODEL IN CONSTANT EVOLUTION Structure conceived to support the Company’s strategy and ensure

transparency to all stakeholders.

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The Board of Directors defines general policies and guidelines, analyzes and approves proposals made by the Executive Board, as well as monitors the results obtained. To assist it and provide greater flow to the decision-making processes, the Board of Directors counts on the Advisory Committees.

The Advisory Committees aim to add greater value to the Board of Directors, as they have been given instruments that allow them to exercise their duties with greater efficiency and agility, and continuously improving the quality of our decision-making process. These committees are composed of members of the Board of Directors, who do not have executive functions or decision-making powers.

Risk and Internal Audit Committee The purpose is to contribute to the analysis of issues involving the economic and financial management and the risks involved in the business, the investments, capital structure, short and long-term financial operations and the monitoring of accounting practices, audit processes and transparency of information.

Corporate governance committee and personnel management. Implemented to assist in the analysis of policies, processes, IT, ongoing improvement and innovation, quality of the management of human resources, as well as issues related to best Corporate Governance practices.

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The internal committees are the Company’s bodies chaired by the Executive Board and the members are executives of the Company.

Financial Management Committee It has an essential role in the management of corporate finance and aspects related to the management of cash flow and capital structure. It monitors and supervises the adoption of Company’s Financial Management policy.

Internal Committee for Evaluation of Proposals It analyzes assumptions and parameters, as well as the economic and financial feasibility and risks associated to new projects of different lines of business.

Personnel Management Committee It has an essential role in the analysis of policies and processes related to the management of human resources. It monitors and outlines plans for the execution of strategies defined in the strategic planning, specially regarding the people development program, comprised by the Leaders Development Program (Programa de Desenvolvimento de Líderes) and Individual Development Program (PDI), in addition to the annual climate survey program, succession program, appointment and development of the employee base.

Ethics committee The principal duty is the analysis of the treatments of whistle blowers received by the Company’s whistleblowing channel, focusing on the compliance with the code of conduct and ensuring that their principles and standards are considered and respected throughout its business processes and activities.

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COMPOSITION OF THE MANAGEMENT BODIES

Board of Directors Position Kaumer Chieppe President Decio Luiz Chieppe Board Member Roberto Lucio Nunes de Carvalho Independent Board Member Carlos Chieppe Netto Board Member Renan Chieppe Board Member Riguel Chieppe Board Member Armando de Azevedo Henriques Board Member Higor Uzzun Sales Board Member Claudia Jordão Ribeiro Pagnano Independent Board Member

Elected by the annual shareholders’ meeting for a mandate of one year (with possibility of reelection), the board of directors may be composed of, at least, five and, and the maximum of nine members, of which 20% should be independent. The principal attributions of the body are to define the business strategy and periodically monitor its evolution.

Statutory Officers Position Patrícia Poubel Chieppe Executive Officer Ana Silvia Calegari Gava Deputy Officer Aline Simões Denadai Officer, Purchase and Sale of Assets Bruno Pretti Chieppe Business Officer Carlos Chieppe Netto Business Officer Ciro Ferreira da Rocha Administrative Officer Luciano Rodrigues Werner Business Officer Ricardo Pinca Bernasconi Business Officer Rodolfo Altoé Filho Business Officer André Luiz Chieppe Financial and Investor Relations Officer

VIX’s statutory board should be composed of, at least, two and the maximum of fifteen professionals, who may develop other functions in the Company. The Executive Board is selected by the Board of Directors and has two-year terms with a possibility of re-election. The body must monitor the performance of the business lines and check the compliance with the guidelines of the strategic planning, goals, objectives and policies of the Company.

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CODE OF CONDUCT, WHISTLEBLOWING CHANNEL, ANTICORRUPTION POLICY AND OTHER POLICIES

As part of the best corporate governance practices adopted, VIX has policies that concentrate information on relevant themes and assist the management of the business.

Code of Conduct

VIX has a code of conduct that clearly defines the ethical principles and the behavioral commitments that should guide the relations with the internal and external public of the company. It should be widely known by the employees, suppliers, service providers, clients, shareholders, investors, press and community.

The ethical principles established therein should be the base for negotiations of contracts, agreements, proposals of amendment of the by-laws, as well as the policies adopted by VIX. The code consolidates what VIX expects from a healthy and fair relationship with the internal and external public. The adoption of the guidelines defined in the code of conduct and the maintenance of an environment with the highest ethical standards is a commitment of all the professionals in their relations with VIX.

The document includes, among other, anticorruption practices, guidelines for the integrity of information, and guidelines to prevent conflict of interests. It also establishes an exclusive channel to address suggestions and whistle blowers.

Whistleblowing channel

In addition to our managers, who represent a communication channel appreciated by VIX, denunciations regarding noncompliance with the guidelines contained in the code of conduct can be communicated through the whistleblowing channel, using any of the following accesses: (i) e-mail: [email protected], VIX’s website (CONTACT VIX > WHISTLEBLOWING CHANNEL of the website www.vix.com.br), phone call 0800-777-1112, or by letters or other printed means sent to the address Av. Jerônimo Vervloet, 345, Goiabeiras, Vitória – ES, CEP 29.075-140, to the attention of the “WHISTLEBLOWING CHANNEL”.

All denunciations will be received by an independent and specialized company, ensuring absolute secrecy and the appropriate treatment of each situation by the Company, without conflicts of interest.

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Anticorruption Policy

VIX has an Anticorruption Policy, destined to shareholders, executives, members of the CAD, employees, service providers, suppliers and other third parties with relations with the Company.

The Anticorruption Policy’s aim is to guide the actions and decisions of all the managers and employees through the ability to act with integrity and transparency, giving priority to honesty in personal and professional relations.

Disclosure policy of acts and relevant events

It covers practices, obligations and mechanisms of use and disclosure of information to shareholders, in accordance with the regulation of the Brazilian Securities Commission (CVM), thus ensuring equal access to data and keeping the confidentiality of undisclosed relevant facts.

Securities trading policy

It establishes the rules for trading of securities issued by VIX. The purpose is to prevent the improper use of privileged information.

Dividend policy

It formalizes the payment of dividends in accordance with the provisions of the Corporation Law, of the by-laws and of the shareholders’ agreement. The dividend policy establishes the payment of the maximum of 30% of annual net income.

The improvement of the current practices and the review of policies are part of the governance action plan of the Company. This plan establishes, among other measures, the development of integrity, compliance and risk management practices, the improvement of environmental and security procedures, the alignment of anticorruption guidelines and the appointment of one more independent board member

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ECONOMIC AND FINANCIAL PERFORMANCE

SECTORAL SCENARIO

Global economic impact caused by the pandemic and the countries’ growth challenge for 2021.

Global Scenario

The year 2020 was atypical in recent human history. The year began with the world focusing the Middle East, in light of the worsening of tensions between the USA and Iran, which resulted in a strong appreciation of oil prices. However, already in February, news from China about COVID-19 and its rapid proliferation shifted the focus from the risk of a conflict between the world’s largest economy and the Middle East to a global pandemic.

Policy

In Brazil, the pandemic and the concerns that have emerged contributed to a very troubled political scenario. The government worked to approve important measures, such as the provision of emergency aid, aiming to support the population in the critical period of the pandemic. This happened in the midst of a scenario of imbalance in public accounts, increased indebtedness and the public expenditures ceiling under pressure.

The measures brought even more challenges to the Federal Government, which saw the debt-to-GDP ratio increase, the inflationary scenario on an upward trend, an expansionary monetary policy, with the lowest level of interest rates in the country’s history, as well as a depreciated exchange rate. In the international political scenario, in addition to the problem that became the most critical for all countries in the fiscal field as a result of COVID-19, the world followed the outcome of the American presidential elections, which culminated in the victory of Joe Biden to command the world’s largest economy. There was much anticipation about how the new president would proceed regarding the economic stimulus for the depressed American economy in 2021.

Economic activity

The transport sector as a whole has suffered very severely from the global pandemic, with repercussions in the workforce, in the production of vehicles and in the price of fuel, among others. Led by the agribusiness, civil construction and e-commerce segments, the sector has resumed growth and already has better figures than the estimates. The plants and automakers

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were unable to meet all market demand for new vehicles after the shutdown, and resumed with low inventory levels. According to Anfavea, in the new vehicles market, despite the fact that the automakers resume their activities, they still operate with around 60% of idleness. The scenario for the used car market was quite different, with a volume of used cars 23.91% higher than 2019, according to Fenabrave. In the domestic scenario, the GDP projection for the year 2021 is 3.5% (versus -5% in 2020); therefore, an impact on the GDP of the transport sector can be expected. The economy’s basic interest rate reached a new historic low and ended the year at 2.0%.

Foreign Sector

After a turbulent 2020, mainly impacted by the pandemic and its effects on global economies, the world is wondering what to expect from 2021. In the main world economy, after the victory of Democrat Joe Biden, the expectation is for more economic stimulus, substantial tax increases and an advance in the ESG agendas. With the start of mass vaccination, some experts estimate that the world will return to normal as of the second half of 2021, which will drive robust growth on a global scale. Interest rate price reviews are also expected, which has undergone major cuts to minimize the effects of the crisis. Regarding emerging markets, strong growth is expected, much driven by China. In Latin America, the forecast is positive, given the high price of commodities in general, which is basically supported by the growth of the Chinese economy. We believe that the performance of Brazil will basically depend on the government initiatives in the fiscal area, the approval of the reforms and the devaluation of the exchange rate. With these fronts well aligned, we believe in a very promising scenario for 2021, not only for Brazil, but also for the world.

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VIX’S PERFORMANCE OPERATING REVENUE

In thousands of reais 2020 2019 Change %

Gross revenue 1,904.2 1,916.0 -0.6%

Revenue from services 1,712.3 1,799.3 -4.8%

Fleet renewal 191.8 116.6 64.5%

Deductions from revenue (209.4) (226.4) -7.5%

Net revenue 1,694.8 1,689.6 0.3%

In 2020, Net Revenue reached R$ 1.69 billion, remaining stable compared to the year 2019. The modest evolution for the period is the result of varying impacts in each of the Company’s operating segments during the year. The FMO segment is among the positive highlights, presenting a robust growth of 31.2% in Net Revenue. However, the better performance of other segments did not offset the impact felt in the Automotive Logistics operation, whose revenue was strongly impacted by the decision of the automakers to stop their operations and close the dealerships during the most critical period of the pandemic. Fleet Renewal Revenue grew 64.5%, with a higher volume of vehicles sold and better margins, totaling R$ 191.8 million. This contribution was important in mitigating the impact of the pandemic on revenue generation. COST OF SALES AND SERVICES RENDERED Main changes in costs with services rendered as interest in net revenue were:

Service Costs as % RoL 2020 2019 Labor 30.3% 33.7% Inputs 11.2% 10.9% Depreciation 13.3% 11.5% Aggregated and third parties 8.7% 12.0% Fleet renewal 9.2% 6.0%

ROL - net operating revenue.

As a result, the Gross Margin increased 1.8 pp, from 14.6% in 2019 to 16.4%.

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OPERATING EXPENSES Operating expenses decreased 7.7%, (or R$ 7.6 million) in 2020 and reduced the share in net revenue by 0.4 pp in relation to 2019. The main changes for the period were as follows: Reduction of R$ 121 thousand in personnel expenses, while the share in net revenue

remained stable; Outsourced Services, reduction of R$ 2.0 million and 0.1 pp in the share in net revenue Other expenses, with a decrease of R$ 1.84 million and 0.1 pp in the share in net

revenue

EBITDA

It is the measure used by management to show the Company’s performance, and included the income before interest, taxes, depreciation and amortization. In 2020, EBITDA totaled R$ 424.5 million, an increase of 21.2% compared to 2019, leading to a strong expansion of 4.3 pp in the margin, to 25.0% at the end of 2020. The increase in the margin reflects the Company’s agility in adopting measures to mitigate the effects of the pandemic on its operation, focused on improving operational efficiency and effective cost management. It is important to note that the EBITDA does not represent the cash flow for the periods presented and, therefore, should not be considered as alternative to net income as indicator of operating performance or as alternative to cash flow as indicator of liquidity. NET FINANCIAL EXPENSE Net financial expense totaled R$ 79.2 million, 5.5% lower than in 2019. Despite a higher average debt during the year, this change reflects the downward trend in the basic interest rate. NET INCOME In 2020, the Company’s net income reached R$ 74.6 million, a record in history and an evolution of R$ 30.1 million compared to 2019. Earnings per share were R$ 0.88154 in the period.

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INDEBTEDNESS

In thousands of reais 2020 2019 Change % Gross debt ¹ 1,585.3 1,577.7 0.5%

Short-term 587.5 381.9 53.8% Long-term 997.7 1,195.8 -16.6%

Cash and cash equivalents 505.0 479.8 5.3% Net debt 1,080.2 1,097.8 -1.6%

¹ Income (loss) from derivatives and IFRS 16 are included.

At the end of 2020, the Company’s cash totaled R$ 505.0 million, while gross debt reached R$ 1.58 billion. As a result, net debt ended 2020 at R$ 1.08 billion, accounting for a decrease of 1.6% compared to the end of 2019. The leverage measured by the net debt/EBITDA ratio was 2.54x, a considerably lower level compared to 2019, which ended with a leverage of 3.13x. Owing to the uncertainty generated by the pandemic and the stress caused in the credit market, we reinforced our cash position with shorter-term operations in order not to carry high spreads for a long time. Taking advantage of the strong cash generation and the robust liquidity position after overcoming this most critical period, the Company opted to amortize older and higher-cost debts still arising from Finame-BNDES. Below are further details about the cost of debt and amortization terms.

Description Maturity date¹

Balance (in R$ million) ²

Loans BNDES 2027 51.6 Pre-fixed loans 2023 223.3 Loans - Postfixed 2024 1,349.3 Swap transactions 2024 - 52.4 Gross debt³ 1,571.7

¹ Maturity term of the last contract by type. ². Considers the balances of operations with derivatives - Assets/Liabilities ³ Does not consider IFRS 16 and structuring costs.

INVESTMENTS

Investments made in 2020 totaled R$ 432.4 million, of which 53% were used to renew the fleet and 47% for expansion purposes. The FMO segment received most of this volume, of approximately R$ 231.2 million. The amount was lower than in 2019 due to the uncertainties caused by the pandemic scenario, which led to the temporary suspension of new investments. Added to this are also the delay in the resumption of new hires and bids by clients, as well as the difficulties faced by suppliers to fully resume the production of vehicles and equipment,

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creating shortage of products on the market. Net fixed assets totaled R$ 1.41 billion at the end of 2020. The operating fleet totaled 19,488 units, and was divided as follows:

Operating fleet (unit) 2020 %

Automobiles and SUVs 9,806 50.3%

Trucks 1,050 5.4%

Chassis inputs 212 1.1%

Machinery and equipment 739 3.8%

Buses, Minibuses and Vans 1,218 6.3%

Tow truck and tractor trailer 1,299 6.7%

Motorcycles 263 1.3%

Utility 4,901 25.1%

Total 19,488 100.0%

DIVIDENDS The Company’s dividend policy provides for the distribution of maximum dividends of 30% of annual net income, and the minimum of 25% of adjusted net income pursuant to the Corporation Law. In 2019, VIX distributed R$ 10.1 million in dividends, which corresponds to R$ 0.52605 per share. The distribution of dividends for the year 2020 is subject to approval by the general shareholders’ meeting. FREE CASH GENERATION

In thousands of reais 2020 2019 Operating free cash generation ¹ 427.2 (204.7)

CAPEX, net ² 285.3 524.4 Free cash generation 141.9 (729.2)

¹ Free Cash Generation corresponds to: (i) net cash generated by operating activities less (ii) the amount related to the acquisition and renewal of fleet of vehicles less (iii) the amount related to revenue from renewal of fleets recorded in the statement of income.

² The net CAPEX corresponds to: (i) funding of loans related to the acquisition of vehicles less (ii) net cash used in investment activities less (iii) the amount related to the acquisition and renewal of fleet of vehicles less (iv) the amount related to revenue from renewal of fleets recorded in the statement of income.

Without the effect of exclusive fund.

In thousands of reais 2020 2019 Operating free cash generation ¹ 358.4 88.0

CAPEX, net 285.3 524.4 Free cash generation 73.1 (436.4)

¹ Considering the exclusive fund as securities, pursuant to the management understanding and as set out in the second line of the balance sheet in current

assets. Circular letter/CVM/SNC/SEP No. 01/2018 that does not consider investment in exclusive funds.

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STATEMENT OF ADDED VALUE In 2020, the Company distributed R$ 1.24 billion through its operations, as presented in the table below:

In thousands of reais 2020 2019 Personnel 508.9 556.4 Taxes, duties and contributions 331.9 338.6 Third-party capital remuneration 334.2 224.9 Remuneration of own capital 74.6 44.5 Total 1,249.8 1,164.6

The financial statements and respective notes can be fully accessed through our website www.ri.vix.com.br or at www.cvm.gov.br.

SOCIAL AND ENVIRONMENTAL HIGHLIGHTS

Human capital is essential for the continuity of our business and for the quality of services provided to our clients. Therefore, the concern with the development and retention of professionals became a big challenge for the next years. The ongoing search for improvement of the workplace climate and hiring of employees with a set of attitudes, skills, capacities, abilities and competences, especially applied to the Company’s values, became fundamental to a successful personnel management. Accordingly, Vix has been implementing programs, training and tools focused on the development of leaders, integrated management of activities and improvement of quality and security. Among which, the most important are:

Leaders Development Program (PDL)

In order to develop competences, identify and prepare leaders, the program offers on-site training, coaching, forums and assessment cycles.

Integrated Management System

It allows higher involvement and knowledge of the work instructions, procedures and policies of quality, environment and security in accordance with the functions developed.

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2,61%

17,66%

39,80%

26,47%

13,45%

Up to 21 years

21–30 years

30–40 years

40–50 years

>50 years

Program of Recycling of Drivers and Operators (PRMO)

With relevant impact on the activities, this program is essential for awareness and sensitization of professionals on the importance of their role in the compliance with traffic and security rules.

EMPLOYEES’ PROFILE The Company closed the year 2020 with 9,120 employees. Of this total, we classified below a few indicators:

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70,99%

11,88%

11,97%

2,70%

1,52%

0,94%

03–24 months

03–05 years

06–10 years

11–15 years

16–20 years

>21 years

Length of service

25

11,07%

88,93%

Female

Male

Illiterate 0,0% Incomplete Elementary

School 0,2%

Complete Elementary

School 0,4%

Incomplete High School 21,6%

Complete High School 70,0%

College/university not concluded

1,7%

Bachelor's Degree5,3%

Specialization or Above 0,8%

Gender

Education

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MAIN SOCIAL AND ENVIRONMENTAL INITIATIVES

Project Target audience Objectives

Reverse Logistic Internal and stakeholders Ensure the return and proper treatment of residues, in accordance with Law 12305/10, through the development of actions with the suppliers

Dia Verde Internal and stakeholders Foment initiatives of concrete actions for the preservation of environment

Sustainable Movement

Internal Disseminate sustainability actions in search for “more attitudes” for the development of an organization increasingly conscious and aligned with efficient results

SIPATMA Internal Promote the sensitization of employees and increase awareness on issues related to health, security and environment with effect on the local community

AMIGAB Interested parties

Provide emergency support to 3,096 children and family members served by seven institutions in Espírito Santo, Pará and Maranhão. Throughout 2020, due to the pandemic, the voluntary actions of employees were replaced by the donation of 98.5 tons of food and 39.6 thousand hygiene materials.

Selective Collection Internal Provide proper treatment and destination to residues produced by operating and administrative activities

AB - Energias renováveis

Internal and stakeholders

Clean energy generation, through the installation of a photovoltaic plant located in the states of Espírito Santo and Minas Gerais to supply all companies of the Águia Branca Group.

Escola Viva Interested parties Promote a new model of school, full time, for students of public schools, with pedagogic activities that develop the competences of the young public.

Cine.Ema – Environmental and Sustainable Film Festival of Espírito Santo

Interested parties

Create awareness towards the importance of environmental preservation through film making and workshops on environmental education to the communities surrounding the Environmental Reserve of Águia Branca. The 2020 edition was held through an online platform and included a competition in schools in Espírito Santo. Approximately 900 students participated by sending photos, videos and poetry with the theme “Nature is me”.

Festival cultural e ambiental das montanhas capixabas

Interested parties Promote awareness of environmental preservation through cultural actions carried out in the Águia Branca environmental reserve and surroundings.

Book and documentary Pedra Azul ecological corridor – Forno Grande

Interested parties

Promote environmental awareness and preservation through photographs and knowledge generation on the important remnant of the Atlantic Forest in Espírito Santo, including information and support from the Águia Branca Environmental Reserve. The images and stories captured by the project during 2020 will be presented in 2021 with the launch of the book, exhibitions and films

MOV.CIDADE – Urban mobility Interested parties

Foster society’s reflection and engagement on the importance of innovation and sustainability in urban mobility solutions. The (online) event addressed the contributions of the Águia Branca Group on this topic, addressing the most recent projects and services.

Águia Branca Environmental Reserve

Internal and stakeholders Institution of Natural Heritage Private Reserve (RPPN) aimed at ecotourism, cultural activities, environmental education and scientific research.

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INVENTORY OF EMISSIONS Our efforts for the realization of the inventory of emissions have the purpose to comprehend the impacts involved in the Company’s activities and to establish initiatives of reduction over the next years. Therefore, we periodically conduct inventory of the atmospheric emissions generated by the operations of logistic transportation based on the methodology of the Program GHG Protocol. We present below the history of the emissions in scopes 1 (mobile combustion and fugitive emissions), 2 (purchase of electric power) and 3 (solid residues generated by the operation and business travels).

Direct and indirect emissions of greenhouse gases (in tCO₂ eq)

Emissions in metric tons of CO² equivalent (tCO² e)*

Scope 1 (Tons) Scope 2 (Tons) Scope 3 (Tons)

39,181.12 35.65 588.54 *2019 dat

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FINAL CONSIDERATIONS Relations with independent auditors In compliance with CVM Instruction 381/03, the Company informs that in the year ended December 31, 2020, there was no breach of rules of independence regarding the audit services rendered by KPMG Auditores Independentes. In our relationship with our Independent Auditor, the Company seeks to evaluate conflicts of interest arising from non-audit work based on: the auditor should not (a) audit its own work, (b) exercise management functions and (c) promote Company’s interests. Statement of the Executive Board The Executive Board of VIX Logística S.A. declares, under the terms of the Article 25 of CVM Instruction 480, dated December 7, 2009 that reviewed, discussed and agreed with (i) the content and opinion expressed in the KPMG Auditores Independentes report; and (ii) with financial statements for the fiscal year ended December 31, 2020. Corporate Information VIX Logística S.A. CNPJ [EIN]: 32.681.371/0001-72 CVM Code: 21202 NIRE: 32,300,029,612 Headquarters Avenida Jerônimo Vervloet, 345 Goiabeiras – Vitória/ES CEP 29075-140 Investor Relations Email: [email protected] www.ri.vix.com.br

KPMG Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative (“KPMG International”), uma entidade suíça.

KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

KPMG Auditores Independentes

Rua do Passeio, 38 - Setor 2 - 17º andar - Centro

20021-290 - Rio de Janeiro/RJ - Brasil

Caixa Postal 2888 - CEP 20001-970 - Rio de Janeiro/RJ - Brasil

Telefone +55 (21) 2207-9400

kpmg.com.br

Independent auditor’s report in the parent company and

consolidated financial statements

KPMG Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative (“KPMG International”), uma entidade suíça.

KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Vix Logística S.A.CNPJ: 32.681.371/0001-72

Balance sheets

December 31, 2020 and 2019

(In thousands of reais)

Assets Notes 2020 2019 2020 2019 Liabilities Notes 2020 2019 2020 2019

Current assets Current liabilitiesCash and cash equivalents 7 80,120 14,354 133,098 39,000 Loans and financing 16 473,139 314,096 599,564 382,739Securities 8 248,525 341,738 371,986 440,823 Suppliers 31,371 29,441 78,839 53,962Accounts receivable 9 192,923 229,845 310,772 361,772 Suppliers with related parties 20 3,442 3,712 3,367 4,275Accounts receivable with related parties 20 1,288 1,260 1,175 1,140 Labor obligations payable 17 26,078 29,496 41,752 50,441Inventories 10 26,803 24,001 35,645 30,827 Taxes payable 18 11,783 10,931 16,925 18,055Recoverable taxes 11 13,808 11,318 18,989 18,434 Income tax and social contribution payable 194 - 4,810 1,615Recoverable income tax and social contribution 7,346 21,130 15,945 31,552 Accounts payable 19 23,217 25,504 28,059 32,823Prepaid expenses 4,163 1,479 7,695 12,570 Advances from clients 629 520 4,588 4,913Other accounts receivable 2,932 7,054 6,640 3,905 Dividends payable 22 6,993 6,689 6,993 6,689 Operations with derivatives 6 (iii) 7,643 2,999 11,983 849Assets available for sale (fleet renewal) 12 27,626 23,819 53,121 36,063 576,846 420,389 784,897 555,512Dividends receivable 7,034 5,070 - -

620,211 684,067 967,049 976,935Non-current liabilitiesLoans and financing 16 854,189 957,744 1,038,218 1,211,777

Non-current assets Debits with related parties 20 139 204 - - Related party credits 20 5,037 13,184 4,518 12,027 Deferred income tax and social contribution 23 92,318 91,191 106,896 109,989Recoverable taxes 11 17,884 10,763 17,884 10,763 Accounts payable 19 - 22,734 1,606 27,215Other accounts receivable 23,415 17,246 27,936 20,453 Tax liabilities 18 2,254 3,027 2,254 3,027Accounts receivable 9 44,048 - 44,048 - Provision for lawsuits and contingencies 21 17,993 16,979 24,652 23,736Prepaid expenses - 53 92 272Operations with derivatives 6 (iii) 22,431 12,289 40,427 15,952 966,893 1,091,879 1,173,626 1,375,744Judicial deposits 21 13,308 15,005 18,300 21,550

1,543,739 1,512,268 1,958,523 1,931,256126,123 68,540 153,205 81,017

Investments 13 777,948 615,843 344 344 Shareholders’ equityProperty, plant and equipment 14 679,807 756,701 1,414,608 1,396,297 Capital 22 332,000 332,000 332,000 332,000Intangible assets 15 38,278 34,244 121,945 123,790 Capital reserves 22 9,338 9,338 9,338 9,338

Profit reserve 22 349,461 297,143 349,461 297,1431,496,033 1,406,788 1,536,897 1,520,431 Equity valuation adjustments 22 7,829 8,646 7,829 8,646

1,622,156 1,475,328 1,690,102 1,601,448 698,628 647,127 698,628 647,127

Total assets 2,242,367 2,159,395 2,657,151 2,578,383 Total liabilities and shareholders' equity 2,242,367 2,159,395 2,657,151 2,578,383

See the accompanying notes to the financial statements.

Parent company Consolidated Parent company Consolidated

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Statements of income

Years ended December 31, 2020 and 2019(In thousands of reais)

Notes 2020 2019 2020 2019

Net revenue from sales and services 25 984,711 919,353 1,694,800 1,689,590Costs with sales and rendering of services 26 (784,844) (778,309) (1,416,957) (1,442,735)

Gross income 199,867 141,044 277,843 246,855

Administrative/general/commercial expenses 26 (66,608) (76,108) (92,387) (100,086) Other revenues, net 4,535 1,243 6,866 3,658Equity in net income of subsidiaries 13 23,015 38,895 - -

(39,058) (35,970) (85,521) (96,428)

Operating income before financial income (loss) 160,809 105,074 192,322 150,427

Financial expenses 27 (230,268) (154,802) (305,705) (202,038) Financial revenues 27 170,959 97,185 226,501 118,262

Income before income tax and social contribution 101,500 47,457 113,118 66,651

Current income tax and social contribution 23.1 (26,416) 615 (42,228) (21,032) Deferred income tax and social contribution 23.2 (412) (3,512) 3,782 (1,059)

Net income for the year 74,672 44,560 74,672 44,560

Net earnings per common share - basic and diluted (in reais) 0.88154 0.52605


Parent company Consolidated

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Statements of comprehensive income


2020 219 2020 2019


Other comprehensive incomeItems that can be subsequently reclassified to income (loss)Cash flow hedge (734) 1,013 (785) 1,464 Effect from equity in hedge accounting - Subsidiary (51) 451 - - Exchange-rate change in foreign investee - (13) - (13)

(785) 1,451 (785) 1,451

Comprehensive income for the year 73,887 46,011 73,887 46,011



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Statements of changes in shareholders’ equity


Paid-up Equity

capital Capital valuation Retained

reserve Legal Investments adjustments earnings Total

Balances at 1st January 2019 332,000 9,338 25,042 240,861 7,227 - 614,468

Net income for the year - - - - - 44,560 44,560 Cash flow hedge - - - - 1,013 - 1,013 Effect from equity in hedge accounting - Subsidiary - - - - 451 - 451 Exchange-rate change in foreign investee - - - - (13) - (13) Total comprehensive income for the year - - - - 1,451 44,560 46,011 Realization of revaluation reserve - - - - (32) 48 16 Formation of legal reserve - - 2,228 - - (2,228) - Dividends paid - - - - - (6,679) (6,679) Mandatory dividends (supplement) - - - - - (6,689) (6,689) Profit retention - - - 29,012 - (29,012) -

Total contributions and distributions to shareholders - - 2,228 29,012 (32) (44,560) (13,352) Balances at December 31, 2019 332,000 9,338 27,270 269,873 8,646 - 647,127

Paid-up Equity

capital Capital valuation Retained

reserve Legal Investments adjustments earnings Total Balances at 1st January 2020 332,000 9,338 27,270 269,873 8,646 - 647,127

Net income for the year - - - - - 74,672 74,672 Cash flow hedge - - - - (734) - (734) Effect from equity in hedge accounting - Subsidiary - - - - (51) - (51) Exchange-rate change in foreign investee - - - - - - - Total comprehensive income for the year - - - - (785) 74,672 73,887

- Realization of revaluation reserve - - - - (32) 48 16 Formation of legal reserve - - 3,734 - - (3,734) - Dividends paid - - - - - (15,409) (15,409) Mandatory dividends (supplement) - - - - - (6,993) (6,993) Profit retention - - - 48,584 - (48,584) -

Total contributions and distributions to shareholders - - 3,734 48,584 (32) (74,672) (22,386) Balances at December 31, 2020 332,000 9,338 31,004 318,457 7,829 - 698,628


Profit reserve

Profit reserve

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Cash flow statements


Cash flows from operating activities 2020 2019 2020 2019


Depreciation and amortization (Notes 13, 14 and 15) 132,088 122,173 232,217 199,922 Residual value of fixed and intangible assets written off (Notes 12, 14 and 15) 80,730 52,380 167,785 105,264 Equity in net income of subsidiaries (Note 13) (23,015) (38,895) - - Unrealized interest, inflation adjustment and exchange-rate change on loans 141,277 60,387 178,475 84,062 Changes in unrealized income (loss) from derivatives at fair value through profit or loss (14,786) (5,223) (35,609) (6,055) Provision for contingencies (reversal) 1,014 1,719 916 1,725 Loss/recovery of asset values 320 - 473 - Provision (reversal) for expected losses (245) 286 673 3,436 Merger 1,208 - - - Income tax and social contribution expense 412 2,897 (3,782) 22,091 393,675 240,284 615,820 455,005 Changes in operational assets and liabilitiesAccounts receivable (6,881) (59,918) 6,279 (85,118) Inventories (3,122) (7,815) (5,291) (11,290) Recoverable taxes (9,611) (28) (7,676) 6,502 Recoverable income tax and social contribution 13,784 (6,811) 15,607 (14,684) Suppliers 1,930 (20,464) 24,877 (20,427) Labor obligations (3,418) 3,393 (8,689) 10,039 Tax liabilities 79 (1,367) (1,903) 565 Income tax and social contribution payable 3,824 - 17,767 577 Other current and non-current assets and liabilities 352 (31,947) (5,249) (42,966)

390,612 115,327 651,542 298,203 Cash generated by operating activitiesIncome tax and social contribution paid (3,630) - (14,572) (21,032) Interest paid (72,799) (49,125) (86,622) (72,450) Investments in securities (715,208) (455,692) (1,160,761) (727,340) Redemptions in securities 808,421 186,629 1,229,598 434,483 Acquisition and renovation of vehicle fleet (121,250) (177,037) (399,139) (482,586) Net cash flow from operating activities 286,146 (379,898) 220,046 (570,722) Cash flows from investment activitiesAcquisitions of other fixed and intangible assets (15,931) (26,253) (25,394) (40,330) Dividends received 5,070 38,000 - - Acquisition of subsidiary, net of cash (20,667) - (20,667) - Capital increase (decrease) in investee (150,000) (150,000) - - Net cash flow used in investment activities (181,528) (138,253) (46,061) (40,330) Cash flows from financing activitiesFunding of loans and financing 393,800 613,250 463,800 793,250 Payments of loans and financing (410,553) (99,717) (521,588) (175,878) Dividends paid (22,099) (10,159) (22,099) (10,159)

Net cash flow used in financing activities (38,852) 503,374 (79,887) 607,213

Exchange-rate change on foreign investments - - - (13) Increase/(decrease) in cash and cash equivalents 65,766 (14,777) 94,098 (3,852) Cash and cash equivalents at January 1 14,354 29,131 39,000 42,852

Cash and cash equivalents on December 31 80,120 14,354 133,098 39,000

65,766 (14,777) 94,098 (3,852)



Adjustment of items without cash disbursement for reconciliation of income from cash generated by operating activities

12


Statements of added value


2020 2019 2020 2019 RevenuesSale of goods, products and services 1,098,062 1,032,458 1,904,284 1,916,040 Other revenues 4,598 1,349 14,410 3,769 Allowance for doubtful accounts (643) (586) (1,891) (3,994)

1,102,017 1,033,221 1,916,803 1,915,815 Inputs acquired from third partiesCost of goods and services sold (213,275) (190,214) (494,494) (490,529)Materials, energy, outsourced services and other (116,459) (127,365) (166,256) (179,006)Loss/recovery of asset values (320) - (473)

(330,054) (317,579) (661,223) (669,535) Gross added value 771,963 715,642 1,255,580 1,246,280

Depreciation and amortization (132,088) (122,173) (232,217) (199,922) Net added value produced by the Company 639,875 593,469 1,023,363 1,046,358 Added value received as transferEquity in net income of subsidiaries 23,015 38,895 - - Financial revenues 170,959 97,185 226,501 118,262

193,974 136,080 226,501 118,262

Total added value payable 833,849 729,549 1,249,864 1,164,620 Distribution of added value

PersonnelSalaries and charges 294,264 321,784 496,578 543,852 Directors’ fees 11,533 11,723 11,533 11,723 Retirement and pension plans 813 788 874 899

Taxes, duties and contributionsFederal 146,687 131,859 240,806 246,781 State 26,624 24,622 54,472 54,938 Municipal 27,914 26,987 36,634 36,934

Third-party capital remunerationInterest 224,078 148,747 296,065 192,561 Rentals 23,084 14,235 31,304 25,362 Other 4,180 4,244 6,926 7,010

Remuneration of own capitalDividends 22,402 13,368 22,402 13,368 Retained earnings 52,270 31,192 52,270 31,192

833,849 729,549 1,249,864 1,164,620



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VIX Logística S.A. and subsidiaries Individual and consolidated financial statements December 31, 2020 and 2019

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Notes to the individual and consolidated financial statements (Amounts expressed in thousands of reais, unless otherwise indicated) General information

VIX Logística S.A. (“Company”, "VIX", “Group” or when jointly referred with its subsidiaries in consolidated position) is a logistics services provider organized as a publicly-held corporation, registered with the Brazilian Securities Commission (CVM) under No. 21202 since November 27, 2007, headquartered at Avenida Jerônimo Vervloet, nº 345 - 1º Pavimento - Goiabeiras - Vitória/ES. The Group is mainly engaged in logistics services for rent and management of fleets, transfer services, cargo handling, automotive logistics and dedicated logistics, as follows: inbound and outbound logistics, milk-run, reverse logistics, handling of steel products, cross-docking, inventory and storage management, ore transport, special transport, among others, with operations in Brazil and in Argentina and Uruguay. 1.1 Impact of Coronavirus (COVID-19) In view of the proliferation of COVID-19, which generated the legislative decree at the federal level recognizing national public calamity, the Group developed several economic and social action plans, seeking to maintain the financial health, as well as the health of our employees. The social measures adopted are in line with the measures and recommendations of the OMS and the Ministry of Health. In the economic sphere, we adopted hard-hitting plans to preserve the company's financial health, conducting negotiations with our main suppliers, revising values and terms, suspending uninitiated projects and reviewing ongoing projects. Recommendation on the use of masks, in addition to the distribution of masks for the transportation of people (V1). In the personnel structure, the Group initially took several actions to adapt its staff, adopting government measures with the application of MPs 927, 932 and 936 in addition to ordinance 129 (Ministry of Economy), reduction of salaries of statutory directors, suspension of dividends, in addition to evaluating and adapting the back office structure taking into account the impacts suffered in each sector and seeking to adapt to the moment the group is going through. Implemented remote work (home office) for the entire administrative team, with the purchase of notebooks and increased access to VPN systems. In the banking and financial sphere, the Group has made several negotiations with banks, such as the suspension of Finame payments for six months, supported by MP published by the government, negotiation of some operations and funding aimed at


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reinforcing cash. We also filed a writ of mandamus with the Federal Revenue Service for the use of approximately R $ 28 million reais in taxes to be recovered. As of the second quarter of 2020, measures were adopted by the States of the Federation of Brazil that allow the flexibility of the rules that were initially adopted, with a gradual resumption of economic activities. The Company maintains the safety measures recommended by the health authorities. List of subsidiaries

See accounting policy in Note 13. As of December 31, 2020 and 2019, the Group had the following subsidiaries: AB SRL had no operating activities on December 31, 2020. The Group and its subsidiaries are controlled by Águia Branca Participações S.A. (“Group”), which has business in the logistics, road transportation, air transportation, trade of vehicles, parts and renewable energies.

2.1 Corporate changes As of December 31, 2020, VIX’s corporate restructuring was approved and announced in a material fact. The restructuring consisted of the total merger of the subsidiary Valoriza Locadora de Veículos Ltda. by LS Rentals Participações S/A, and LS Rentals Participações S/A for the parent company VIX Logística S.A.

Company Denomination Activity developed 2020 2019 Águia Branca Logística Ltda. ABL Cargo Road Transportation and logistics 100 100VIX Transportes Dedicados Ltda VIXTD Cargo Road Transportation and logistics 100 100Águia Branca SRL (Argentina)¹ AB SRL Cargo Road Transportation and logistics 99 99Autoport Transportes e Logística Ltda. ATL Road transportation of vehicles 100 100VIXLOG Tecnologia e Serviços Ltda.² VIXLOG Technology company 100 100LS Rentals Participações S/A³ L'S Holding - 100Let’s Rent a Car S/A LET'S Lease of vehicles 100 100Salute Locação e Empreendimentos Ltda SALUTE Lease of vehicles 100 100Valoriza Locadora de Veículos Ltda³ VALORIZA Lease of vehicles - 100

Ownership interest %

¹ Pre-operating company.² Indirectly controlled company with no trade transactions.³ Company merged into the parent company.


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VIX’s corporate and operational structure Preparation basis

3.1 Statement of conformity (in relation to IFRS standards and CPC standards)

The individual and consolidated financial statements were prepared in accordance with the International Financial Reporting System (IFRS) issued by the International Accounting Standards Board (IASB) and also in accordance with the accounting practices adopted in Brazil (BR GAAP). The financial statements for the year ended December 31, 2020 were authorized for issue by the Group’s Executive Board on March 8, 2021, considering subsequent events occurring until such date. All material information proper to the individual and consolidated financial statements, and only it, is being evidenced, and corresponds to those used by Management for administration.

3.2 Functional and presentation currency (a) Presentation currency The presentation currency is the currency in which financial statements are presented and usually defined according to the legal obligations of the Company. In compliance with Brazilian law, these financial statements are being presented in Reais. (b) Functional currency


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The items included in the financial statements of each of the Group’s companies are measured using the main currency of the economic environment where the company operates (the "functional currency"). The functional currency of VIX and subsidiaries ABL, VIXTD, ATL, LET’S, SALUTE and VIXLOG is the Real (R$) and of the subsidiary AB SRL is the Argentine peso. Each subsidiary of the Group determines its own functional currency, and those whose functional currencies are different from the real (BRL), the financial information is translated into Reais on the financial closing date.

3.2.1 Foreign currency transactions Foreign currency transactions are converted into functional currency by using foreign exchange rates prevailing on the transaction or valuation dates, when the items are remeasured.

Monetary assets and liabilities denominated and calculated in foreign currencies on the balance sheet date are reconverted into the functional currency at the exchange rate on that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into the functional currency at the foreign exchange rate on the date the fair value was determined. Non-monetary items that are measured based on the historical cost in foreign currency are translated using the rate of the transaction date. Foreign currency differences arising from the translated are recognized in income (loss). However, foreign exchange differences resulting from retranslation of items listed below are recognized in other comprehensive income.

investment in equity instruments designated at FVTOCI (except in the case of impairment in which the exchange differences recognized in other comprehensive income are transferred to income (loss));

financial liability designated as hedge of net investment in a foreign transaction, as hedge is effective; and

a qualified and effective cash flow hedge.

3.2.2 Foreign operation Foreign transactions' assets and liabilities are translated into reais (R$) at the exchange rate prevailing on balance sheet date. Foreign transactions' revenues and expenses are translated into reais (R$) at exchange rates prevailing on transaction dates. The differences in foreign currencies generated for the translation into the presentation currency are recognized in other comprehensive income and accumulated in the equity valuation adjustments in shareholders' equity account (see Note 22 (e)).


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3.3 Use of estimates and judgments The preparation of these financial statements, Management used judgments, estimates and assumptions that affect the Group’s application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates. Estimates and assumptions are reviewed on a continuous basis. Reviews of estimates are recognized on a prospective basis. a) Judgments

Information about judgment referring to the adoption of accounting policies which impact significantly the amounts recognized in the financial statements are included in the following notes: • Note 16 - Leases payable: if the Company is reasonably sure of exercising extension options (lease terms). b) Uncertainties about assumptions and estimates • note 16 - leases payable: main assumptions regarding the implied discount rate; • note 14 and 15 - depreciation and amortization: main assumptions regarding the estimated useful life of property, plant and equipment and the right to use and intangible assets; • note 21 - recognition and measurement of provisions for lawsuits: main assumptions about the probability and magnitude of outflows; • note 23 - deferred income tax and social contribution: availability of future taxable income against which temporary differences would be deductible.

• Note 6 (i) - measurement of expected credit loss for accounts receivable and

contractual assets: main assumptions in determining the weighted average rate of loss.

3.4 Measuring basis The financial statements were prepared based on the historical cost, except for the following material items recognized in the balance sheets:

derivative financial instruments measured at fair value; and


46

non-derivative financial instruments designated at fair value through profit or loss are measured at fair value.

Significant accounting policies

The Group applied the accounting policies described below consistently to all the years presented in these financial statements. We present below a summary of significant accounting policies, whose details are available in the corresponding pages.

4.1 Basis of consolidation .............................................................................................. 47

4.2 Business combination .............................................................................................. 48

4.3 Evaluation of impairment of non-financial assets...................................................... 48

4.4 Standards and interpretations not yet effective ........................................................ 49

4.5 Accounting classification and fair values .................................................................. 51

4.5.1 Financial assets and liabilities ........................................................................... 51

4.5.2 Adjustment to present value of assets and liabilities ......................................... 51

4.5.3 Impairment of financial assets ........................................................................... 52

4.6 Derivative financial instruments and hedge accounting ............................................ 52

4,6,1 Cash flow hedge ............................................................................................... 52

4,6,2 Fair value hedge ............................................................................................... 53

Classification and fair values ...................................................................................... 53

Financial risk management ......................................................................................... 57

Cash and cash equivalents ......................................................................................... 70

Securities .................................................................................................................... 70

Accounts receivable .................................................................................................... 71

Inventories .................................................................................................................. 72

Recoverable taxes ...................................................................................................... 72

Assets available for sale (fleet renewal) ...................................................................... 73

Investments ................................................................................................................ 74

Property, plant and equipment .................................................................................... 77

14,1 Movement of the Property, plant and equipment ...................................................... 79

Intangible assets ......................................................................................................... 81

Loans and financing .................................................................................................... 84

Labor obligations payable ........................................................................................... 91

Taxes payable ............................................................................................................ 91


47

Accounts payable ....................................................................................................... 92

Balances and transactions with related parties ........................................................... 92

Provision for lawsuits .................................................................................................. 95

21,1 Deposits and court-ordered freezing ........................................................................ 97

21,2 Tax contingencies .................................................................................................... 97

21,3 Labor contingencies ................................................................................................. 98

21,4 Civil liability contingencies ........................................................................................ 98

Shareholders’ equity ................................................................................................... 99

Income tax and social contribution ............................................................................ 100

23,1 Current balances .................................................................................................... 100

23,2 Deferred balances .................................................................................................. 101

Insurance coverage .................................................................................................. 103

Net revenue from sales and services ........................................................................ 104

Cost of services rendered and expenses per type .................................................... 107

Financial revenues and expenses ............................................................................. 108

Operating segment ................................................................................................... 108

Profit diluted per share .............................................................................................. 111

Other disclosures on cash flows ............................................................................... 111

30,1 Non-monetary transactions .................................................................................... 111

Subsequent events ................................................................................................... 112

4.1 Consolidation basis The Group’s consolidated financial statements as of December 31, 2020 and 2019 include the financial statements of the subsidiaries ABL, VIXTD, ATL, LS, LET’S, SALUTE, VALORIZA, VIXLOG and AB SRL. The subsidiaries ABL, VIXTD, ATL, LET’S, SALUTE, VIXLOG and AB SRL are the entities in which the Group holds 100% of the equity control. The financial statements of subsidiaries are included in the consolidated financial statements as from the date the Group obtains the control until the date such control ceases. When the entity loses control over a subsidiary, the Group derecognizes assets and liabilities and any non-controlling interest and other components recorded in shareholders' equity referring to that subsidiary. Any gain or loss resulting from loss of control is recognized in income (loss).


48

Intragroup balances and transactions, as well as unrealized gains from transactions with investees recorded by equity in net income of subsidiaries are eliminated in relation to the investment at the Group’s interest proportion in the investee and unrealized losses are eliminated in the same way as unrealized gains, but only up to the point where there is no evidence of impairment loss. The Group’s accounting policies are applied consistently among all companies that are part of consolidated.

4.2 Business combination Business combinations are accounted for under the acquisition method. The cost of an acquisition is measured by the sum of consideration transferred, valued on fair value basis on the acquisition date, including the value of any ownership interest held by non-controlling shareholders in the acquired company, regardless of their proportion. For each business combination, the buyer must measure the non-controlling interest in the acquired business at the fair value of based on its interest in the net assets identified in the acquired business. When acquiring a business, the Group evaluates financial assets and liabilities assumed with the purpose of classifying and allocating them according to contractual covenants, economic circumstances and pertinent conditions on acquisition date. Any contingent consideration to be transferred by the acquiree will be measured at fair value on the acquisition date. Initially, surplus is initially measured as being the excess of consideration transferred in relation to net assets acquired (acquired identifiable assets, nets and assumed liabilities). After initial recognition, the surplus is carried at cost less any accumulated loss for the impairment losses. For impairment testing purposes, surplus acquired in a business combination is, from the acquisition date, allocated to each cash-generating units of the Group that are expected to benefit by the synergies of combination, regardless of other assets or liabilities of the acquiree being allocated to those units. When the surplus is part of a cash generating unit and a portion of this unit is disposed of, the surplus associated with the disposed portion should be included in the cost of the operation when calculating gains or losses in the disposal. The surplus disposed under these circumstances of this operation is determined based on the proportional values of the portion disposed of, in relation to the cash-generating unit maintained.

4.3 Valuation of impairment of non-financial assets On each reporting date, the Group reviews the book values of its non-financial assets (inventories, fixed assets, intangible assets, contract assets and deferred taxes) to determine if there is an indication of impairment. If certain evidence exists the recoverable value of the asset is determined. In case of goodwill, recoverable value is tested on an annual basis.


49

For impairment tests, assets are grouped into the cash generating units (CGUs), that is, smallest identifiable group of assets that can generate cash inflows by continuous use, which are highly independent from cash inflows referring to other assets or cash generating units. Goodwill from business combinations is allocated to cash generating units or Groups of Cash Generating Units that are expected to benefit combination synergy.

Recoverable value or CGU of an asset is the higher of value in use and fair value less selling costs. Value in use is based on estimated future cash flows discounted to present value using a discount rate before taxes that reflects current market evaluations of times value of money and the specific risks of the assets or CGU.

An impairment loss is recognized when the book value of an asset or its CGU exceeds its recoverable value.

Impairment losses are recognized in income (loss). Recognized losses referring to CGUs are initially allocated to reduce any goodwill allocated to that CGU (or Groups of CGUs) and then to reduce the book value of other assets of that CGU (or Groups of CGUs) on a pro rata basis.

An impairment loss related to goodwill is not reversed. Regarding other assets, impairment losses are reversed only with the condition that the new book value of the asset does not exceed the book value that would have been calculated, net of depreciation or amortization, if the value loss had not been recognized.

4.4 Standards and interpretations not yet effective Several new standards became effective for the years started after January 1, 2020. The Group did not adopt these amendments for preparation of these financial statements since the impact is not material. a) Onerous contracts – costs to fulfill a contract (amendments to CPC 25/IAS 37) These changes specify which costs an entity must include to determine the cost of complying with a contract to assess if the contract is onerous. The changes apply to annual periods beginning on or after January 01, 2022 for existing contracts, on the date such changes are applied for the first time. On the date of first-time adoption, the cumulative effect of applying the changes is recognized as an adjustment to the opening balance in retained earnings or other components of shareholders’ equity, as appropriate. The comparisons are not restated.


50

b) Benchmark interest rate reform - Phase 2 (amendments to CPC 48/IFRS 9, CPC 38/IAS 39, CPC 40/IFRS 7, CPC 11/IFRS 4 and CPC 06/IFRS 16) These amendments address issues that may affect financial statements as a result of Benchmark Interest Rate Reform, including effects of changes in contractual cash flows or hedge relations arising from replacement of reference interest rate by an alternative benchmark rate. The amendments provide practical expedient for certain requirements of standards CPC 48/IFRS 9, CPC 38/IAS 39, CPC 40/IFRS 7, CPC 11/IFRS 4 and CPC 06/IFRS 16, related to the following:

changes in the basis for determining the contractual cash flows of financial assets, financial liabilities, and lease liabilities; and

hedge accounting.

(i) Change in the basis for determining cash flows The changes will require an entity to record changes in the basis for determining the contractual cash flows of a financial asset or financial liability, required according to the reference interest rate reform, by updating the effective interest rate of the financial asset or financial liability. On December 31, 2020, the Group has US$ 9 million in bank loans at the LIBOR rate, which will be the subject of IBOR reform. The Group expects that the reference interest rate for these loans will be changed to CDI + fixed rate in 2021 and that no significant gain or loss on the modification will arise as a result of applying the amendments.

(ii) Hedge accounting The amendments establish exceptions to hedge accounting requirements in the following areas: Allow the change in the designation of a hedge relationship to reflect the changes that are required by the reform.

when a hedged item in a cash flow hedge is altered to reflect the changes required by the reform, the amount accumulated in the cash flow hedge reserve will be considered based on the alternative reference rate at which the hedged future cash flows are determined.

when a Group of items is designated as a hedged item, and an item in the Group is altered to reflect the changes that are required under the reform, the hedged items are allocated to subgroups based on the reference rates being subjected to hedging; e.

if an entity reasonably expects that an alternative reference rate will be separately identifiable within a 24-month period, it is not prohibited from designating the rate


51

as a non-contractually specified risk component, if it is not separately identifiable on the designation date.

As of December 31, 2020, the Group has 1 (one) cash flow hedge from LIBOR risk.

Other standards

rental concessions related to COVID-19 (amendment to CPC 06/IFRS 16) property, plant and equipment: revenues before intended use (amendments to

CPC 27/IAS 16). reference to the Conceptual Framework (amendments to CPC 15/IFRS 3). classification of liabilities in current and non-current (amendments to

CPC 26/IAS 1). Insurance Contracts (CPC 50/IFRS 17).

4.5 Accounting classification and fair values

4.5.1 Financial assets and liabilities

(i) Classification and measurement of financial assets

Group’s financial assets are classified and measured at amortized cost, at fair value through other comprehensive income or fair value through profit or loss. The classification of financial assets is usually based on the business model in which a financial asset is managed and on its characteristics of contractual cash flows. Trade accounts receivable is initially measured at the operation price.

(ii) Classification and measurement of financial liabilities The Group’s financial liabilities are classified and measured at amortized cost, except for financial liabilities measured at fair value through profit or loss from operations with derivatives.

(iii) Offsetting of financial instrument Financial assets and liabilities are offset and their net values in the balance sheet only when there is a legal right to offset the amounts recognized and there is an intent to settle them on net basis, or realize the asset and settle the liability simultaneously. The legal right should not be contingent upon future events and must be applicable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or counterpart.

4.5.2 Adjustment to present value of assets and liabilities


52

Non-current monetary assets and liabilities are adjusted for inflation and, therefore, adjusted to present value. The adjustment to present value of monetary assets and liabilities is calculated and is only recorded if considered relevant for the financial statements taken as a whole. For recognition and materiality determination purposes, the adjustment to present value is calculated taking into consideration the contractual cash flows and the explicit interest rate, and, in certain cases, the implicit interest rate of the related assets and liabilities. With basis on analysis performed and management's best estimates, the Group came to the conclusion that the adjustment to present value of current monetary assets and liabilities is irrelevant for the financial statements taken as a whole and, therefore, did not record any adjustments.

4.5.3 Impairment of financial assets Assets measured at amortized cost The Group accrues, at the end of each report period, credit losses expected for financial assets or the Group’s financial assets. The criteria used by the Group to determine a provision for impairment include:

Rating internal analysis by client on an individual basis. Percentage of historical losses of recent fiscal years (weight = 50%). Arithmetic average of percentage of losses established for each rating by

agencies (weight = 50%).

The provision for impairment of financial assets is recognized directly in income (loss) for the year.

4.6 Derivative financial instruments and hedge accounting The Group uses derivatives to hedge the exposures to foreign currency (cash flow hedge) and interest rate risk (fair value hedge) by using hedge accounting. The valuation or devaluation of the fair value of the instrument used for hedge is recorded as contra-entry to the financial revenue or expense account, in income (loss) for the year and/or specific accounts in the shareholders’ equity. .

4.6.1 Cash flow hedge When a derivative is designated as a cash flow hedge instrument, the effective portion of change in the derivative's fair value is recognized in other comprehensive income. The effective portion of the changes in the fair value of the derivative financial instrument recognized in OCI is limited to the cumulative change in the fair value of the hedged


53

item, calculated based on the present value as of the hedge inception. Any non-effective portion of the changes in the fair value of the derivative is recognized immediately in income (loss).

4.6.2 Fair value hedge

When a derivative is designated as a fair value hedge instrument, the recording of gains and losses is always made in the income (loss), both the part of the instrument and the hedged item. Classification and fair values

The following table shows the book and fair values of financial assets and liabilities, including their fair value classifications. It does not include information on the fair value of financial assets and liabilities not measured at fair value if the book value is a reasonable approximation of fair value. The Group classifies its assets and liabilities at Level 2 in the fair value assessment model presented.


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December 31, 2020

Parent company

Fair value

Total Level 2

Assets according to the balance sheetCash and cash equivalents - 80,120 80,120 80,120 Securities 248,525 - 248,525 248,525 Trade accounts receivable, net 236,971 236,971 - Trade accounts receivable – Related parties, net 1,288 1,288 - Related party credits - 5,037 5,037 - Operations with derivatives 30,074 - 30,074 30,074 Dividends receivable - 7,034 7,034 - Other accounts receivable 26,347 26,347 -

Financial liabilitiesLoans and financing 223,279 1,104,049 1,327,328 1,327,328 Suppliers - 31,371 31,371 - Suppliers related parties - 3,442 3,442 - Debits with related parties - 139 139 - Other accounts payable - 23,846 23,846 - Dividends payable - 6,993 6,993 -

Consolidated

Assets according to the balance sheetCash and cash equivalents - 133,098 133,098 133,098 Securities 371,986 - - 371,986 Trade accounts receivable, net 354,820 354,820 - Trade accounts receivable – Related parties, net 1,175 1,175 - Related party credits 4,518 4,518 - Operations with derivatives 52,410 - 52,410 52,410 Other accounts receivable - 34,576 34,576 -

Financial liabilitiesLoans and financing 223,279 1,414,503 1,637,782 1,637,782 Suppliers - 78,839 78,839 - Suppliers related parties - 3,367 3,367 - Other accounts payable - 34,253 34,253 - Dividends payable - 6,993 6,993 -

Book value

Fair value through profit

or lossAmortized cost


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December 31, 2019

Parent company

Fair value

Total Level 2

Assets according to the balance sheetCash and cash equivalents - 14.354 14.354 14.354 Securities 341.738 - 341.738 341.738 Trade accounts receivable, net 229.845 229.845 - Trade accounts receivable – Related parties, net 1.260 1.260 - Related party credits - 13.184 13.184 - Operations with derivatives 15.288 - 15.288 15.288 Dividends receivable - 5.070 5.070 - Other accounts receivable - 18.725 18.725 -

Financial liabilitiesLoans and financingSuppliers 97.862 1.173.978 1.271.840 1.271.840 Suppliers related parties - 29.441 29.441 - Debits with related parties - 3.712 3.712 - Other accounts payable - 204 204 - Dividends payable - 48.758 48.758 -

- 6.689 6.689 - Consolidated

Assets according to the balance sheetCash and cash equivalents - 39.000 39.000 39.000 Securities 440.823 - 440.823 440.823 Trade accounts receivable, net - 361.772 361.772 - Trade accounts receivable – Related parties, net - 1.140 1.140 - Related party credits - 12.027 12.027 - Operations with derivatives 16.801 - 16.801 - Other accounts receivable - 24.358 24.358 -

Financial liabilitiesLoans and financing 97.862 1.496.654 1.594.516 1.594.516 Suppliers - 53.962 53.962 - Suppliers related parties - 4.275 4.275 - Other accounts payable - 64.951 64.951 - Dividends payable - 6.689 6.689 -

Book value

Fair value through profit

or lossAmortized

cost


56

Measurement of fair value We present the valuation techniques used to measure fair values for financial instruments measured at fair value in the balance sheet, as well as significant non-observable inputs used. Securities - Fair value is estimated considering the following: (i) current or recent prices quoted for identical securities in markets that are not active, and (ii) net present value calculated using discount rates resulting from quoted current returns of securities traded in active markets with similar maturities and credit ratings, adjusted by a liquidity factor. Operations with derivatives - The fair value is calculated based on present value of estimated future cash flows. Estimates of post-fixed rate future cash flows are based on quoted rates of swap, future prices and interest rates on interbank loans. Estimated cash flows are discounted using a curve prepared based on similar sources and reflecting the relevant interbank reference rate used by market participants for this purpose when pricing interest rate swaps. The fair value estimate is subject to a credit risk adjustment that reflects the credit risk of the Group and counterparty, calculated based on credit spreads resulting from credit default swaps or current prices of traded securities. Loans and financing – The fair value was calculated based on the current price of each financial instrument of the Group classified at fair value, so that its reposition permits to the Group the same cash flow characteristics and remaining terms of the original transaction. Realization amounts of marked-to-market contracts were specifically calculated. Hierarchical fair value There are three levels to classify the fair value of financial instruments. The hierarchy gives priority to unadjusted quoted prices in an active market for the financial assets or liabilities. The classification of hierarchical levels can be presented as described below:

Level 1 - Data originating from an active market (unadjusted quoted price) so that it is possible to have daily access including on the date of measurement of the fair value.

Level 2 - Data extracted from a pricing model based on non-observable market data.

Level 3 - Data extracted from a pricing model based on unobservable market data.


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It should be emphasized that in the year under analysis no financial instruments classified as Level 3 were observed and that no level transfers were made in the same year. Financial risk management

The Group is exposed to the following risks resulting from financial instruments: - Credit risk - Liquidity risk - Market risk. Risk management framework The Group’s Board of Directors has full responsibility for the establishment and supervision of Group’s risk management framework. The Board of Directors established the Risk and Audit Committee, which is in charge of developing and monitoring the Group's risk management policies. The Committee reports its activities to the Board of Directors on a regular basis. The risk management policies of the Group are established to identify and analyze risks to which the Group is exposed, to set risk limits and appropriate controls, and to monitor risks and compliance with defined limits. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and in the Group’s activities. The Group seeks to maintain, upon its training and management standards and procedures, a discipline and control environment in which all employees are aware of their assignments and obligations. Group’s Audit Committee oversees the manner that the Management monitors compliance to the Group's risk management policies and procedures, and reviews the adequacy of the risk management structure in relation to the risks to which it is exposed. The Audit Committee is supported by the Internal Audit Team in the execution of its functions. Internal audit carries out regular and specific reviews of the risk policies and procedures, and the outcome of these procedures is reported to the Audit Committee.

(i) Credit risks

Credit risk is the risk of the Group incurring financial losses due to a client or financial instrument counterparty, resulting from failure in complying with contract obligations. Such risk is basically due to Group’s trade accounts receivable, and of financial instruments. The book value of financial assets classified as loans and receivables represents the maximum credit exposure.


58

Accounts receivable and other receivables The Group's exposure to credit risks is influenced mainly by the individual characteristics of each client. However, management also considers the factors that may influence the credit risk of its client base, including the risk of non-payment of the industry and of the country in which the client operates. The Risk and Audit Committee established a credit policy in which new client is analyzed individually to verify their financial status before the Group submits its credit limit proposal and payment terms. The review carried out by the Group includes external ratings, when available, financial statements, credit agency information, industry information and in some cases, bank references. Credit limits are established for each client and are reviewed on a semi-annual basis. Sales that eventually exceed these limits require approval from the Risk and Audit Committee. The Group limits exposure to credit risk of accounts receivable, establishing a maximum payment period of one and three months for individual and corporate clients, respectively. The Group adopts specific selectiveness and client portfolio analysis procedures in order to prevent losses due to non-compliance. The credit quality of financial assets can be evaluated by reference to internal and external credit ratings (if any) or to historical information about counterparty default indexes. As of December 31, 2020 and 2019, the maximum exposure to credit risk for accounts receivable and other receivables as well as the breakdown per maturity class and recording of provision for expected losses for accounts receivable and other receivables are presented in Note 9. Evaluation of expected credit loss to clients The Group classifies internally the whole portfolio according to the credit risk that is understood for each potential client/creditor. The assessment and rating are established by the payment behavior of each customer and their potential within the Group’s business, in addition to a commercial assessment conducted by operating executive boards and default history. The table below shows the exposure to expected credit loss for trade accounts receivable as of December 31, 2020 and 2019.


59

Rating % lossesGross book

balance

Provision for loss

Credit recovery

problems

Gross book

balance

Provision for loss

Credit recovery

problemsAAA 0.02% 135 - No 289 (1) NoAA 0.04% 52,334 (19) No 116,176 (42) NoA 0.36% 8,024 (29) No 28,073 (100) NoB 0.43% 177,282 (756) No 210,220 (897) NoC 7.44% - - No 1,191 (89) NoC- 100.00% - - Yes 4,246 (4,246) Yes

237,775 (804) 360,195 (5,375)

December 31, 2020 Parent company Consolidated

Rating % lossesGross book

balance

Provision for loss

Credit recovery

problems

Gross book

balance

Provision for loss

Credit recovery

problemsAAA 0.02% 4,648 (1) No 19,126 (4) NoAA* 0.04% 47,407 (286) No 104,573 (553) NoA 0.36% 8,384 (30) No 23,626 (84) NoB 0.43% 170,455 (732) No 214,838 (922) NoC 7.44% - - No 1,266 (94) NoC- 100.00% - - Yes 3,045 (3,045) Yes

230,894 (1,049) 366,474 (4,702)

December 31, 2019 Parent company Consolidated

Weighted average

rate of loss

Gross book

balance

Provision for loss

Credit recovery

problems

Weighted average

rate of loss

Gross book

balance

Provision for loss

Credit recovery

problemsTo be billed 0.26% 134,077 (495) No 0.30% 138,526 (522) NoFalling due 0.26% 94,034 (290) No 0.29% 78,887 (205) NoOverdue up to 30 days 0.26% 4,735 (6) No 0.28% 4,154 (11) NoOverdue, 31–90 days 0.21% 2,427 (2) No 0.33% 4,369 (16) NoOverdue, 91–180 days 0.33% 1,877 (8) No 0.32% 3,970 (21) NoOverdue for more than 180 days 0.37% 625 (3) No 0.34% 988 (274) No

237,775 (804) 230,894 (1,049)

Parent company

December 31, 2020 December 31, 2019

Weighted average

rate of loss

Gross book

balance

Provision for loss

Credit recovery

problems

Weighted average

rate of loss

Gross book

balance

Provision for loss

Credit recovery

problemsTo be billed 0.35% 171,889 (574) No 0.37% 191,032 (665) NoFalling due 0.34% 165,541 (477) No 0.31% 145,600 (295) NoOverdue up to 30 days 0.31% 10,843 (42) No 0.37% 8,777 (106) NoOverdue, 31–90 days 0.55% 4,181 (20) No 0.34% 7,002 (26) NoOverdue, 91–180 days 2.05% 2,450 (10) No 0.35% 9,393 (43) NoOverdue for more than 180 days 43.82% 5,291 (4,252) Yes 0.33% 4,670 (3,567) Yes

360,195 (5,375) 366,474 (4,702)

December 31, 2019

Consolidated

December 31, 2020

*Includes a loss of R$ 268 in the parent company R$ 515 in the consolidated, referring to trade notes not receivable from clients rated AA.


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2020 2019 2020 2019

AAA 324,987 403 499908 403 AA 3,347 355,017 4,645 478221

A 11 256 75 616 BBB- 4 - 4 0

328,349 355,676 504,632 479,240


Cash and cash equivalents, securities and derivatives The credit quality of financial assets can be evaluated by reference to internal and external credit ratings (if any) or to historical information about counterparty default indexes: For credit quality of counterparties that are financial institutions, such as cash and financial investments, the Group consider the counterparty’s lowest rating disclosed by the three main international credit agencies (S&P, Fitch and Moody's). Following is a table with rating of financial institutions that are custodians of assets of cash and cash equivalents and securities.

(ii) Liquidity risk

Liquidity risk is established by the possibility of the Group encountering difficulties in performing the obligations associated with its financial liabilities that are settled with cash payments or with another financial asset. The Group's approach in liquidity Management is to guarantee that it will have sufficient liquidity to perform its obligations upon maturity, under normal and stress conditions, without causing unacceptable losses or with a risk of sullying the Group's reputation. The risk management policy implies keeping a safe level of cash and cash equivalents or accesses to immediate funds. Therefore, the Group has funds in checking accounts available for immediate use. The table below shows the maturity of financial liabilities and obligations with suppliers contracted by the Group and its subsidiaries in the financial statements (undiscounted cash flows contracted):


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<01 01–03 03–05 >05Parent company year years years years

December 31, 2020Loans and financing 473,139 820,141 30,971 3,077 Suppliers 31,371 - - - Suppliers – related parties 3,442 - - - Accounts payable 23,217 - - - Dividends 6,993 - - -

December 31, 2019Loans and financing 314,096 799,727 150,604 7,413 Suppliers 29,441 - - - Suppliers – related parties 3,712 - - - Accounts payable 25,504 22,734 - -

<01 01–03 03–05 >05Consolidated year years years years

December 31, 2020Loans and financing 599,564 986,637 48,504 3,077 Suppliers 78,839 - - - Suppliers – related parties 3,367 - - - Accounts payable 28,059 1,606 - - Dividends 6,993 - - -

December 31, 2019Loans and financing 382,739 983,618 220,745 7,414 Suppliers 53,962 - - - Suppliers – related parties 4,275 - - - Accounts payable 32,823 25,996 1,153 66

Capital management The Group's objectives in managing its capital are to safeguard its business continuity capacity to offer return to shareholders and benefits to the other stakeholders besides maintaining an optimal capital structure to reduce this cost. To maintain or adjust the Group’s capital structure, Management may - or propose to, in cases that must be approved by shareholders - review dividend payment policy, return capital to shareholders or even issue new shares to reduce, for example, indebtedness level. Similarly to other industry companies, the Group monitors capital based on financial leverage index. This ratio corresponds to the net debt as a percentage of total capital. Net debt, in turn, corresponds to total loans (including short-term and long-term loans and derivatives, as shown in the consolidated balance sheet), less the amount of cash


62

2020 2019 2020 2019

Total loans, financing and derivatives 1,297,254 1,256,552 1,585,372 1,577,715 Less: Cash and cash equivalents/Securities 328,645 356,092 505,084 479,823

Net debt 968,609 900,460 1,080,288 1,097,892

Total shareholders’ equity 698,628 647,127 698,628 647,127

Total capital 1,667,237 1,547,587 1,778,916 1,745,019

Leverage ratio – % 58% 58% 61% 63%


and cash equivalents. The total capital is calculated through the sum of shareholders' equity, as shown in the consolidated balance sheet, with net debt.

Currently the Group is leveraged, a strategy adopted to implement the growth plan established by the shareholders. (iii) Market risks

Market risk is the risk that changes in market prices, such as foreign exchange and interest rates will impact the gains of the Group or the value of its financial instruments. The objective of market risk management is to manage and control exposures to market risks, within acceptable parameters, and at the same time to optimize the return. The Group uses derivatives to manage market risks. All of these operations take place under guidance established by Risk and Audit Committee. Management of the benchmark interest rate reform and associated risks A fundamental reform of the main benchmark interest rate indices is being carried out globally, including the replacement of some interbank rates offered (IBORs) by alternative rates almost without risk (referred to as IBOR reform). The Group has exposures to IBORs in its financial instruments that will be replaced or reformed as part of these market initiatives. There is uncertainty regarding the timing and methods of transition in some jurisdictions where the Group operates. The Group anticipates that the IBOR reform will have an impact on its risk management and hedge accounting. The risk management committee monitors and manages the Group’s transition to alternative rates. The committee assesses the extent to which contracts refer to IBOR cash flows, whether such contracts will need to be amended as a result of the IBOR reform and how to manage communication about IBOR reform with counterparties. The committee reports to the Entity’s board of directors on a quarterly basis and collaborates


63

with other business functions, as needed. The committee also provides periodic reports on the management of interest rate risk and risks arising from the IBOR reform. Hedge accounting The Group assessed the extent to which its cash flow hedge relationships are subject to uncertainties related to the IBOR reform on December 31, 2020. Hedged items continue to be indexed to LIBOR. These benchmark rates are quoted daily and IBOR’s cash flows are translated with counterparties as usual.

As of December 31, 2020, the Group has 1 (one) cash flow hedge from LIBOR risk. Interest and foreign exchange rate risk Interest rate risk arises from the fluctuation of interest rates on a financial instrument that causes gains or losses. The Group’s interest rate risks refer mainly to securities and interest earning bank deposits, as well as to obligations with loans, financing, debentures, leases payable and right-of-use leases, applied as interest rates. Exchange rate risk arises from the variation between two moments, the relationship between the local currency and an international currency suffering losses or gains in foreign operations. According to the financial policy, the Group contracts derivative financial instruments to reduce its exposure to changes in the exchange rate with foreign exchange swap for contracts in this modality. Loans in the FINAME modalities have post-fixed rates with adjustment by TLP and Selic rates. In both cases, prefixed rates (spread) are added to these indexing units. Bank loans for investments are contracted with post-fixed interest rates at CDI change. The modality of loans is 4.131, in foreign currency, and thus subject to exchange-rate change, have risk of change in the exchange rate of these loans which is mitigated with swap operations carried out with the same financial institutions that granted the loans. Loans for investments contracted with trading at pre-fixed interest rates are hedged from risk of change in market interest rates by contracting post-fixed swap operations carried out with the same financial institutions that granted the loans. Gains and losses computed in this operation are under the heading “Financial expenses” and “Financial revenues” as mentioned in Note 27. Financing obtained with FINAME in the PSI modality have their cost indexed to TLP and, in certain cases, to Selic. In both cases, prefixed rates (spread) are added to these indexing units.


64

2020 2019 2020 2019

Loans - Postfixed 1,099,441 1,157,701 1,395,096 1,433,442 Loans - Fixed 227,887 114,139 242,686 161,074

1,327,328 1,271,840 1,637,782 1,594,516


2020 2019 2020 2019

TJLP/IPCA 34,634 74,323 42,997 122,247 SELIC/CDI 944,513 846,703 1,159,963 1,023,483 Dollar/USD Libor/EUR 120,294 236,675 192,136 287,712

1,099,441 1,157,701 1,395,096 1,433,442


2020 2019 2020 2019

Loans at Selic/CDI 944,513 846,703 1,159,963 1,023,483 Loans in foreign currency + SWAP 90,220 221,387 139,726 270,911 Total debt in CDI (a) 1,034,733 1,068,090 1,299,689 1,294,394

Interest earning bank deposits (b) 325,924 352,510 499,471 466,327

CDI balance (a - b) 708,809 715,580 800,218 828,067


The change risk of Selic and CDI rates is partially mitigated by financial investments made in cash, as described below: Sensitivity analysis The Group’s Management estimates the following effects when sensitivity tests for scenarios varying between 25% and 50% are applied to present a portion of the increase in the risk variable considered on the amounts of loans and financing broken down by debts backed up by CDI, TJLP, IPCA, Selic, Dollar and Euro.


65

Operation Exposure Risk Gain/ (loss)

Potential Probable scenario

Scenario I + impairment of

25%


50%

Debt pegged to CDI 4.58% 5.28% 5.97%Position as of 12/31/2020 942,012 CDI 985,156 991,750 998,250 Impact in income (loss)/shareholders’ equity (loss) (43,144) (49,738) (56,238)

Debt pegged to TLP 6.66% 7.51% 8.35%Position as of 12/31/2020 34,634 IPCA 36,941 37,235 37,526 Impact in income (loss)/shareholders’ equity (loss) (2,307) (2,601) (2,892)

Debt pegged to SELIC 8.12% 8.84% 9.56%Position as of 12/31/2020 2,501 SELIC 2,704 2,722 2,740 Impact in income (loss)/shareholders’ equity (loss) (203) (221) (239)

Parent company

Operation Exposure Risk Potential gain/

(loss) Probable scenario

Scenario I + impairment

of 25%


of 50%

Debt pegged to CDI 4.66% 5.35% 6.05%Position as of 12/31/2020 1,152,720 CDI 1,206,437 1,214,391 1,222,460 Impact in income (loss)/shareholders’ equity (loss) (53,717) (61,671) (69,740)

Debt pegged to TJLP 7.41% 8.56% 9.71%Position as of 12/31/2020 6,051 TJLP 6,499 6,569 6,639 Impact in income (loss)/shareholders’ equity (loss) (448) (518) (588)

Debt pegged to TLP 6.84% 7.69% 8.54%Position as of 12/31/2020 36,946 IPCA 39,473 39,787 40,101 Impact in income (loss)/shareholders’ equity (loss) (2,527) (2,841) (3,155)

Debt pegged to SELIC 8.03% 8.74% 9.46%Position as of 12/31/2020 7,243 SELIC 7,825 7,876 7,928 Impact in income (loss)/shareholders’ equity (loss) (582) (633) (685)

Consolidated

The Group realized, for the debts pegged to the exchange rate (R$/US$) and (R$/EUR) the same change of 25% and 50%, considering for this risk the mitigation by reverse exposure in relation to the debt. The Group considered the forecasts of exchange rate on the balance sheet date and that the probable dollar rate for next year will be R$ 5.14/US$ and the probable Euro, R$ 6.04/EUR. In scenario I + 25% impairment, dollar at R$ 6.43/US$ and Euro at R$ 7.55/EUR; and in scenario I + 50% impairment, dollar at R$ 7.71/US$ and in Euro at R$ 9.06/EUR, as follows:


66

Operation Exposure Risk Gain/ (loss)

Potential Probable scenario


25%


50%Foreign currency instruments (Euro)

Debt -4.03% 25.26% 49.25%Liability position - 73,514 US€ 70,551 92,084 109,720 Impact in income (loss)/shareholders’ equity gain / (loss) 2,963 (18,570) (36,206)

SWAPAsset position in US Dollars 75,664 R$ 72,867 94,443 112,123 Liability position - at CDI 51,776 CDI 54,147 54,507 54,867 Impact in income (loss)/shareholders’ equity gain 18,720 39,936 57,256

Instruments in foreign currency US$ Libor 3 months

Debt 1.50% 27.97% 53.34%Liability position - 46,780 US$ 47,482 59,864 71,732 Impact in income (loss)/shareholders’ equity (loss) (702) (13,084) (24,952)

SWAPAsset position in US Dollars 48,821 R$ 49,736 62,170 74,095 Liability position - at CDI 48,518 CDI 51,887 52,232 52,576 Impact in income (loss)/shareholders’ equity (loss) / gain (2,151) 9,938 21,519

Parent company

Operation Exposure Risk Potential gain/

(loss) Probable scenario


of 25%


of 50%Foreign currency instruments (Euro)

Debt -3.95% 25.36% 49.37%Liability position - 145,356 US€ 139,614 182,218 217,118 Impact in income (loss)/shareholders’ equity gain / (loss) 5,742 (36,862) (71,762)

SWAPAsset position in US Dollars 149,856 R$ 144,466 187,165 222,161 Liability position - at CDI 103,632 CDI 108,404 109,125 109,845 Impact in income (loss)/shareholders’ equity gain 36,062 78,040 112,316

Instruments in foreign currency US$ Libor 3 months

Debt 1.50% 27.97% 53.34%Liability position - 46,780 US$ 47,482 59,864 71,732 Impact in income (loss)/shareholders’ equity loss (702) (13,084) (24,952)

SWAPAsset position in US Dollars 48,821 R$ 49,736 62,170 74,095 Liability position - at CDI 48,518 CDI 51,887 52,232 52,576 Impact in income (loss)/shareholders’ equity gain (2,151) 9,938 21,519

Consolidated


67

Derivative financial instruments The Group uses derivative financial instruments solely for the purpose of hedging against market risks. The effectiveness tests are duly documented, confirming that the designated derivatives are effective in offsetting the change in the market value of the hedged items. The Group uses swap contracts to hedge the variability of cash flows arising from changes in foreign exchange rates related to loans in foreign currency. When a derivative is designated as a cash flow hedge instrument, the effective portion of change in the derivative's fair value is recognized in other comprehensive income in shareholders’ equity, net of deferred income tax and social contribution. The effective portion of the changes in the fair value of the derivative financial instrument recognized in OCI is limited to the cumulative change in the fair value of the hedged item, calculated based on the present value as of the hedge inception. Any non-effective portion of the changes in the fair value of the derivative is recognized immediately in income (loss). The Group uses swap contacts to hedge exposures in changes in fair value deriving from changes in interest rates related to loans in domestic currency. Changes in fair value of hedge instruments are directly recognized in income (loss) for the year. Foreign exchange rate swap Swap operations of exchange-rate rate were contracted concurrently with the loan transactions in foreign currency, comprising equivalent terms, rates and amounts to eliminate exposure to exchange-rate change. Swap operations are contracted to convert debts and loans denominated in Dollars or Euros into Reais. See the table below:


68

December 31, 2020Changes in

Financial institution

InstrumentType of derivative

financial instrument Start date Maturity date Currency Asset position Liability position

Notional value

Asset position

Liability position

Gain/ (loss)

Asset position

Liability position

Gain/ (loss)

Curve vs MTM

Itaú Swap contract Cash flow hedge 18/06/2019 18/06/2024 EUR 1.5765% p.a CDI + 1.80% p.a. 50,000 73,520 50,062 23,458 75,663 51,776 23,887 429 CITI Swap contract Cash flow hedge 27/03/2020 27/09/2023 USD Libor + 2.37% p.a CDI + 4.10% p.a. 45,000 46,782 45,032 1,750 48,821 48,518 303 (1,447)

95,000 120,302 95,094 25,208 124,484 100,294 24,190 (1,018)

December 31, 2019Changes in

Financial institution



Notional value

Asset position

Liability position

Gain/ (loss)

Asset position

Liability position

Gain/ (loss)

Curve vs MTM

CITI Swap contract Cash flow hedge 26/06/2018 27/06/2022 USD Libor + 1.44% p.a. CDI + 2.00% p.a. 67,284 65,993 61,213 4,780 67,432 62,298 5,134 354 Itaú Swap contract Cash flow hedge 18/06/2019 18/06/2024 EUR 1.5765% p.a CDI + 1.80% p.a. 50,000 52,224 50,101 2,123 53,391 50789 2,602 479 ABC Swap contract Cash flow hedge 13/09/2019 12/03/2020 EUR 1.30% p.a. CDI + 1.75% p.a. 50,000 50,202 51,009 (807) 49,836 51189 (1,353) (546) CCB Swap contract Cash flow hedge 29/08/2019 02/03/2020 USD 2.56% p.a. CDI + 1.04% p.a. 75,585 68,518 71,468 (2,950) 68,417 71591 (3,174) (224)

242,869 236,937 233,791 3,146 239,076 235,867 3,209 63

December 31, 2020Financial institution



Notional value

Asset position

Liability position

Gain/ (loss)

Asset position

Liability position

Gain/ (loss)

Curve vs MTM

Itaú Swap contract Cash flow hedge 18/06/2019 18/06/2024 EUR 1,5765% a.a. CDI + 1,80% a.a. 50,000 73,520 50,062 23,458 75,663 51,776 23,887 429 CITI Swap contract Cash flow hedge 27/03/2020 27/09/2023 USD Libor + 2.37% p.a CDI + 4.10% p.a. 45,000 46,782 45,032 1,750 48,821 48,518 303 (1,447) Itaú Swap contract Cash flow hedge 05/06/2019 05/06/2024 EUR 1,7760% a.a. CDI + 1,85% a.a. 50,000 71,855 50,125 21,730 74,192 51,856 22,336 606

145,000 192,157 145,219 46,938 198,676 152,150 46,526 (412)

December 31, 2019Financial institution



Notional value

Asset position

Liability position

Gain/ (loss)

Asset position

Liability position

Gain/ (loss)

Curve vs MTM

CITI Swap contract Cash flow hedge 26/06/2018 27/06/2022 USD Libor + 1.44% p.a. CDI + 2.00% p.a. 67,284 65,993 61,213 4,780 67,432 62,298 5,134 354 Itaú Swap contract Cash flow hedge 18/06/2019 18/06/2024 EUR 1,5765% a.a. CDI + 1,80% a.a. 50,000 52,224 50,101 2,123 53,391 50,789 2,602 479 ABC Swap contract Cash flow hedge 13/09/2019 12/03/2020 EUR 1.30% p.a. CDI + 1.75% p.a. 50,000 50,202 51,009 (807) 49,836 51,189 (1,353) (546) CCB Swap contract Cash flow hedge 29/08/2019 02/03/2020 USD 2.56% p.a. CDI + 1.04% p.a. 75,585 68,518 71,468 (2,950) 68,417 71,591 (3,174) (224) Itaú Swap contract Cash flow hedge 05/06/2019 05/06/2024 EUR 1.7760% p.a CDI + 1.85% p.a. 50,000 51,047 50,217 830 52,494 50,981 1,513 683

292,869 287,984 284,008 3,976 291,570 286,848 4,722 746

Parent company

Consolidated

Consolidated

Market value (book value)The curve's value

Parent companyIndex The curve's value Market value (book value)

Index


69

December 31, 2020

Changes inFinancial institution



Notional value

Asset position

Liability position

Gain/ (loss)

Asset position

Liability position

Gain/ (loss)

Curve vs MTM

Bradesco Swap contract Fair value hedge 08/06/2018 09/06/2023 BRL 12.06% p.a. CDI + 1.75% p.a. 50,000 41,971 41,763 208 45,037 41,758 3,279 3,071 Bradesco Swap contract Fair value hedge 29/06/2018 19/06/2023 BRL 11.56% p.a. CDI + 1.68% p.a. 30,000 25,099 25,030 69 26,857 25,028 1,829 1,760 Bradesco Swap contract Fair value hedge 25/05/2020 24/05/2021 BRL 5.21% p.a. 211.26% CDI 150,000 150,784 150,617 167 151,386 150,610 776 609

230,000 217,854 217,410 444 223,280 217,396 5,884 5,440

December 31, 2019

Changes inFinancial institution



Notional value

Asset position

Liability position

Gain/ (loss)

Asset position

Liability position

Gain/ (loss)

Curve vs MTM

Bradesco Swap contract Fair value hedge 08/06/2018 09/06/2023 BRL 12.06% p.a. CDI + 1.75% p.a. 50,000 59,899 55,997 3,902 65,079 55,832 9,247 5,345 Bradesco Swap contract Fair value hedge 29/06/2018 19/06/2023 BRL 11.56% p.a. CDI + 1.68% p.a. 30,000 30,073 30,033 40 32,783 29,951 2,832 2,792

80,000 89,972 86,030 3,942 97,862 85,783 12,079 8,137

Index The curve's value Market value (book value)

The curve's value Market value (book value)Index

Parent Company and Consolidated

Parent Company and Consolidated

Interest rate swap Interest rate swap operations were contracted concurrently with the pre-fixed loan operations, comprising equivalent terms, rates and amounts. Interest rate swap operations are contracted to convert pre-fixed debts and loans into post-fixed pegged to CDI. See the table below:


70

2020 2019 2020 2019

Cash 296 416 452 583 Banks 2,425 3,166 5,161 12,913 Interest earning bank deposits (i) 77,399 10,772 127,485 25,504

80,120 14,354 133,098 39,000


2020 2019 2020 2019 CurrentFinancial Treasury Bills (LFTs) 96,401 172,425 144,291 222,419 Bank deposit certificate - CDB 1,833 12,696 2,743 16,377 Financial Bills 11,024 36,254 16,501 46,766 Investment fund quotas 139,267 120,363 208,451 155,261

248,525 341,738 371,986 440,823


Cash and cash equivalents

Cash equivalents are maintained for the purpose of meeting short-term cash commitments rather than for investment or other purposes. The breakdown of the balance of cash and cash equivalents is as follows:

(i) They are investments in CDBs and repurchase and resale agreements with immediate liquidity;

that is, the redemption can be carried out at any time, remunerated at floating rates and with an average annual return of 96.03% (84% as of December 31, 2019) of the change in the Interbank Certificate of Deposit (CDI).

Group’s Management defines “Cash and cash equivalents” as amounts maintained for the purpose of meeting short-term financial commitments rather than for investment or other purposes. The Group’s financial investments refer to highly liquid short-term investments, with original maturities of up to three months, which are easily converted into a known sum of cash and subject to an insignificant risk of change of value. Securities

Refer to centralization of its investments in Fundo de Investimento Multimercado Crédito [Private] which has daily liquidity and no redemption restrictions. Daily residual amounts are allocated for automatic investments, available for redemption, and there is no restriction to be applied on this balance (daily liquidity), remunerated at floating rate and with annual average yield of 85.63% (97.68% as of December 31, 2019) of exchange amount of the Interbank Deposit Certificate (CDI). The chart below shows the breakdown of securities, as of December 31:


71

2020 2019 2020 2019 CurrentTrade notes receivable 103,698 92,368 188,306 175,442 Unbilled services and other accounts receivable 88,736 137,248 120,387 181,194 Transportation bill of lading to be invoiced 1,104 1,278 7,265 9,838 (-) Expected credit loss (615) (1,049) (5,186) (4,702)

192,923 229,845 310,772 361,772

Non-currentServices to be billed 44,237 - 44,237 - (-) Expected credit loss (189) - (189) -

44,048 - 44,048 -

236,971 229,845 354,820 361,772


2020 2019 2020 2019

Falling due 94,034 78,887 165,541 145,600 Overdue up to 30 days 4,735 4,154 10,843 8,777 Overdue 31–90 days 2,427 4,369 4,181 7,002 Overdue 91–180 days 1,877 3,970 2,450 9,393 Overdue >180 days 625 988 5,291 4,670

103,698 92,368 188,306 175,442


2020 2019 2020 2019

Opening balance (1,049) (741) (4,702) (3,432) Provisions (23) (308) (941) (1,270) Reversals 268 - 268 - Closing balance (804) (1,049) (5,375) (4,702)


Accounts receivable

a) Group’s accounting practice

They are initially recognized at fair value through profit or loss less expected credit loss. The analysis of the realizable net amount is conducted on an individual basis by client, and a provision is recognized in an amount considered sufficient by the Group’s management, as mentioned in Note 6.

The aging analysis of these accounts receivable is as follows:

Changes in provision for expected credit loss


72

2020 2019 2020 2019

Parts and accessories (i) 17,512 14,520 22,790 18,251 Tires 4,231 3,722 6,144 5,485 Materials for bodies 2,105 1,729 2,803 2,290 Fuels and lubricants 2,397 2,464 3,275 3,022 Other items 878 1,566 1,106 1,779 (-) Impairment loss (320) - (473) -

26,803 24,001 35,645 30,827


2020 2019 2020 2019

CurrentValue-Added Tax on Sales and Services - ICMS(i) 13,447 10,588 13,932 11,153 Social Integration Program - PIS and Contribution for the Financing of Social Security - COFINS 182 309 3,918 National Social Security Institute - INSS 58 300 1,895 3,240 Other 121 121 121 123

13,808 11,318 18,989 18,434 Non-currentValue-Added Tax on Sales and Services - ICMS(i) 8,585 10,763 8,585 10,763 Federal taxes to be recovered (ii) 9,299 - 9,299 -

17,884 10,763 17,884 10,763

31,692 22,081 36,873 29,197


3,041

Inventories


Inventories are related to fuels, tires and maintenance parts valued at the average cost of acquisition, not exceeding its Net realizable value.

Provisions for slow-moving or obsolete inventories are formed when considered necessary by Management. On December 31, 2020, the Group reduced the value of slow-moving or obsolete inventories, which resulted in a loss of R$ 320 in the parent company and R$ 473 in the consolidated.

(i) Used for maintenance of vehicles (batteries, bolts, washers, filters, bearings, belts, etc.).

Recoverable taxes


73

(i) ICMS is mainly represented by the credit related to acquisitions of fixed assets, using the rate of 1/48th, pursuant to the prevailing tax legislation. The Group and its subsidiaries assess, for each acquisition, the recoverable portion of taxes and incorporate the non-recoverable portion into cost of origin item in fixed assets, since its usage can only be made proportionally to taxed inflows.

(ii) Duplicate payment related to the adhesion to PAEX before the Federal Attorney General's Office (PGFN).

Assets available for sale (fleet renewal)


As set forth in the agreements, the Group and its subsidiaries constantly renew their fleet after a certain period of use. Such assets (vehicles, machinery and equipment) are reclassified from fixed assets to “assets available for sale”. Once classified as assets available for sale, they are not depreciated and they are recorded at their residual value or market value less sale costs, whichever is lower. According to the demand, in high-seasonality periods, assets may be designated for use in operations again. When this happens, assets return to the fixed assets base and respective depreciation is accounted for again.

2020 2019 2020 2019

Trucks / Semi-towing 8,962 5,096 17,837 9,324 Light / Utility/ Bus 7,205 8,969 21,837 16,385 Machinery 11,459 9,754 13,447 10,354 Total assets held for sale 27,626 23,819 53,121 36,063



74

% interest Assets LiabilitiesShareholders’

equityNet income/Loss

for the yearDirect investmentsÁguia Branca Logística - ABL 100 34,965 7,093 27,872 3,623 Autoport Transportes e Logística - ATL 100 168,830 40,257 128,573 13,460 VIX Transportes Dedicados - VIXTD 100 338,333 167,417 170,916 (26,246) Águia Branca S.R.L. - ABSRL 100 9 - 9 (1) L'S Rentals S.A. - LS - - - - (23) Valoriza Locadora de Veículos Ltda - - - - (76) Let’s Rent a Car S/A 100 530,661 222,496 308,165 29,618 Salute Locação e Empreendimentos Ltda 69,293 6,132 63,161 2,660

698,696 23,015 Other investmentsGoodwill and surplus in acquisition of subsidiaries 81,690 (-) Amortization of surplus in the acquisition of subsidiaries (3,694) (-) Write-off of deferred income tax and social contribution in the acquisition of subsidiaries 1,077 Other (i) 179

79,252

777,948

Parent company – December 31, 2020

2020 2019 2020 2019

Opening balance 23,819 28,679 36,063 29,457 Return 5,133 929 5,373 962 Reincorporation 1,843 1,830 1,843 1,830 Preparation for sale 629 188 648 188 Changes to operating assets held for sale 57,591 41,517 108,179 68,419 Write-offs by disposal (61,380) (49,260) (98,854) (64,729) Other write-offs (9) (64) (131) (64) Closing balance 27,626 23,819 53,121 36,063


b) Changes in assets available for sale (fleet renewal)

Investments


The investments of the Group in its subsidiaries are valued under the equity method, for the purposes of the Parent Company’s financial statements. The ownership interest in subsidiaries is presented in parent company’s statements as equity in net income of subsidiaries, representing the net income attributable to shareholders of the subsidiaries. Other permanent investments are recorded at cost, less provision for devaluation, when applicable.


75

% interest Assets LiabilitiesShareholders’

equityNet income/Loss

for the yearDirect investmentsÁguia Branca Logística - ABL 100 34,140 9,891 24,249 1,305 Autoport Transportes e Logística - ATL 100 162,118 47,005 115,113 33,989 VIX Transportes Dedicados - VIXTD 100 351,645 224,432 127,213 (14,498) Águia Branca S.R.L. - ABSRL 100 20 10 10 (11) L'S Rentals S.A. - LS 100 420,398 153,009 267,389 18,110

533,974 38,895 Other investmentsGoodwill and surplus in acquisition of subsidiaries 88,834 (-) Amortization of surplus in the acquisition of subsidiaries (3,169) (-) Write-off of deferred income tax and social contribution in the acquisition of subsidiaries (3,975) Other (i) 179

81,869

615,843

Parent company – December 31, 2019

Indirect investments

2020 2019

Other (i) 344 344 344 344

Consolidated

(i) These are projects incentivized in compliance with the Audiovisual Law, using part of the

funds from the Group’s tax net income. As of December 31, 2020, the Group did not record a loss (loss of R$ 13 as of December 31, 2019) with exchange-rate change for foreign investments. This change results from investment in the company Águia Branca S.R.L. and its subsidiary, located in Argentina.


76

ABL ATL VIXTD ABSRL LS LETS SALUTE Total

Balances at January 1, 2019 22,944 134,124 66,260 34 163,580 - - 386,942

(+) Equity in net income of subsidiaries 1,305 33,989 (14,498) (11) 18,110 - - 38,895 (+/-) Hedge accounting - - 451 - - - - 451 (+) Capital increase (decrease) - (15,000) 75,000 - 90,000 - - 150,000 (-) Distribution of dividends - (38,000) - - (4,301) - - (42,301) (-) Exchange-rate change on foreign investments - - - (13) - - - (13)

Balances at December 31, 2019 24,249 115,113 127,213 10 267,389 - - 533,974

Balances at January 1, 2020 24,249 115,113 127,213 10 267,389 - - 533,974

(+) Equity in net income of subsidiaries 3,623 13,460 (26,246) (1) 32,179 - - 23,015 (+/-) Hedge accounting - - (51) - - - - (51) (+) Capital increase (decrease) - - 70,000 - 80,000 - - 150,000 (-) Merger - - - - (379,568) 315,199 63,161 (1,208) (-) Distribution of dividends (7,034) (7,034) (-) Exchange-rate change on foreign investments - - - - - - - -

Balances at December 31, 2020 27,872 128,573 170,916 9 - 308,165 63,161 698,696


77

Property, plant and equipment


Recorded at acquisition cost, except for own land and buildings, which are presented at their amounts reappraised on the base date September 2007, based on an appraisal report issued by independent expert appraisers and right-of-use recorded at cost. The depreciation of assets is calculated under the straight-line method, except for machinery, which is calculated by hour/machine, considering the forecasted residual amount and estimated useful life of assets. The depreciation rates used are mentioned in the table of changes below: Maintenance and repair expenses, which do not fit into the definition of assets, are accounted for as expenses when incurred. Leasehold constructions and improvements are depreciated by the shorter period between the estimated useful life of the asset and contract period. Assets acquired through financial lease are depreciated at the expected useful life as own assets. Land and construction work in progress are not depreciated or amortized. Once the loans contracted by the Group are mainly for acquisition of its fleets, assets are subsequently ready for use. For this reason, in the Group interest on loans is not classified as component of book value of a fixed asset item. The Group and its subsidiaries review, annually, the estimated used life and residual value of its property, plant and equipment. Useful lives may vary in conformity with the activity/contract in which they are comprised. The effect of any changes in estimate being accounted for on a prospective basis. The Group reassessed the depreciation policies of its fixed assets and respective useful lives in the year and noted that there were no significant changes that could impact these estimates. In the review of the useful life of assets, the following criteria are considered for preparation of the in-house study conducted by the Group:

maintenance, operation and condition. use of amounts included in the table of the Fundação Instituto de Pesquisas

Econômicas [Economic] (FIPE) for appraisal of trucks/vehicles. conditions to which assets are submitted during the service provision period. terms existing in certain service agreements that require the renewal of the fleet

used. technical knowledge of the Group’s operating team. existing terms in lease contracts.


78

Revaluation balances recorded under “equity valuation adjustments” account, as permitted by the Federal Law 11638/07 and mentioned in Note 23 (e), will be maintained up to thorough amortization, which follows revaluated asset useful life. Certain Group’s assets are acquired by means of financial lease agreements (transaction in which there is a substantial transfer of risks and benefits related to the property of an asset) are recognized under Property, plant and equipment in assets and under "Loans and financing" in liabilities, at the present value of the minimum mandatory installments of the agreement, or at the fair value of the asset plus, when applicable, the direct initial costs incurred in the transaction.

The right-of-use asset is subsequently depreciated using the straight-line method from the start date to the end of lease term.

Impairment analysis The Group made an assessment on the existence of impairment of property, plant and equipment, mainly regarding the fleets of vehicles, machinery and operating equipment. With the results of the analyzes, Management concluded that there are no losses to be recorded. The analysis of indicators considered the comparison between the residual balances of assets, individually or jointly, by model, and their estimated sales values, based on the market prices practiced and the experts’ expectations regarding future pricing;


79

Parent company

VehiclesMachinery and

equipment

Land/Buildings and

constructionsLeasehold

improvements

property, plant and

equipment in progress

Other property, plant and

equipment Total

Balances at December 31, 2018 400,538 161,217 44,834 3,924 31,691 21,020 663,224 First-time adoption of CPC 06 (R2) / IFRS 16 - - 1,893 - - - 1,893 Balances at January 1, 2019 400,538 161,217 46,727 3,924 31,691 21,020 665,117 Acquisitions 151,188 47,512 364 - 49,121 1,911 250,096 Write-offs by disposal (372) (34) - - - - (406) Other write-offs (2,347) (176) (81) (2) - (28) (2,634) Reclassification - assets for sale (31,834) (9,683) - - - - (41,517) Other reclassifications 55,935 3,553 3,011 3,744 (66,209) (34) - Depreciation (78,225) (29,702) (1,966) (2,225) - (1,837) (113,955)

Balances at December 31, 2019 494,883 172,687 48,055 5,441 14,603 21,032 756,701

Balances at January 1, 2020 494,883 172,687 48,055 5,441 14,603 21,032 756,701 Acquisitions 60,289 18,432 3,109 1 39,163 1,581 122,575 Write-offs by disposal (16,222) (341) - - - - (16,563) Other write-offs (2,423) (30) (174) (19) - (120) (2,766) Reclassification - assets for sale (50,354) (7,237) - - - - (57,591) Other reclassifications 33,225 52 582 5,042 (26,888) (12,013) - Depreciation (82,952) (31,969) (2,251) (3,425) - (1,952) (122,549)

Balances at December 31, 2020 436,446 151,594 49,321 7,040 26,878 8,528 679,807

Annual average depreciation rates (%)Light / Utility/ Bus 16.5 - - - - -Trucks / Semi-towing 17.0 - - - - -Operating machinery - 18.3 - - - -Other - - 41.6 35.5 - 11.9

14.1 Changes in property, plant and equipment


80

Consolidated

VehiclesMachinery and

equipment

Land/Buildings and

constructionsLeasehold

improvements

property, plant and

equipment in progress

Other property, plant and

equipment Total

Balances at December 31, 2018 743,895 192,297 44,834 5,508 56,342 36,434 1,079,310 First-time adoption of CPC 06 (R2) / IFRS 16 - - 16,461 - - - 16,461 Balances at January 1, 2019 743,895 192,297 61,295 5,508 56,342 36,434 1,095,771 Acquisitions 391,235 73,244 2,921 - 129,969 2,569 599,938 Write-offs by disposal (37,292) (34) - - - - (37,326) Other write-offs (2,536) (218) (81) (5) - (54) (2,894) Reclassification - assets for sale (57,704) (10,715) - - (68,419) Other reclassifications 151,730 5,094 3,011 9,248 (168,908) (175) - Depreciation (139,852) (40,019) (5,527) (3,262) (2,113) (190,773)

Balances at December 31, 2019 1,049,476 219,649 61,619 11,489 17,403 36,661 1,396,297

Balances at January 1, 2020 1,049,476 219,649 61,619 11,489 17,403 36,661 1,396,297 Acquisitions 321,548 24,000 8,135 3,028 50,494 1,807 409,012 Write-offs by disposal (57,088) (341) - - - - (57,429) Other write-offs (3,474) (30) (174) (20) - (119) (3,817) Reclassification - assets for sale (99,105) (9,074) - - (108,179) Other reclassifications 50,558 119 582 6,590 (31,760) (26,089) - Depreciation (164,667) (40,919) (6,992) (6,392) - (2,306) (221,276)

Balances at December 31, 2020 1,097,248 193,404 63,170 14,695 36,137 9,954 1,414,608

Annual average depreciation rates (%)Light / Utility/ Bus 15.8 - - - - - Trucks / Semi-towing 14.9 - - - - - Operating machinery - 18.8 - - - - Other - - 30.4 33.9 - 15.3


81


Balances at January 1, 2019 1,893 16,461 Addition due to new contracts 359 2,728 Total outflows for leases (14) (14) Remeasurement adjustment 5 191 Balances at December 31, 2019 2,243 19,366

Depreciation expense in the period (885) (4,444)

Balances at January 1, 2020 1,358 14,922 Addition due to new contracts 2,899 5,342 Total outflows for leases (174) (174) Remeasurement adjustment 210 2,793 Balances at December 31, 2020 4,293 22,883

Depreciation expense in the period (1,050) (5,791)

The change in balances of the right-of-use asset is shown in the table below, according to the class of each asset, Land/buildings and constructions: Intangible assets


Intangible assets are measured on initial recognition at acquisition cost and, subsequently, are stated less accumulated amortization and impairment losses, where applicable. The amortization of intangible assets is calculated under the straight line method, considering the estimated useful life and rates mentioned in the table below. To estimate the useful live, the Group considers the following criteria for preparation of the internal report based on the analysis of technical, physical, economic factors, installations, maintenance and technological obsolescence applied in the economic activities performed:

analysis of technology implemented and expected contribution for business over time.

past history of previous technology already implemented in the Group. market reality for the system implemented in the same industry. perpetuity calculation based on the flow constant growth model.


82

Fees units Discount rates (WACC) 10.3%Growth rates in perpetuity 3.5%Estimated growth rates for EBITDA (i) - average for next nine years 15.1%

Fees units Discount rates (WACC) 9.2%Growth rates in perpetuity 3.0%Estimated growth rates for EBITDA (i) - average for next nine years 11.4%

Impairment analysis The Group carried out an assessment of the existence of impairment of intangible assets and goodwill. Finally, as recommended by CPC 01 (R1), the goodwill of future profitability should be tested in each cash-generating unit, using the income method, that is, the discounted cash flow to determine the value in use as defined: "Value in use is the present value of expected future cash flows that must come from an asset or a cash-generating unit." The calculation of the value in use, according to the guidelines of CPC 01 (R1). Vix's management defined that the following two companies form, through the consolidated operation, a single cash-generating unit (“UGC”): • LET's Rent A Car S.A. • Salute Locação e Empreendimentos Ltda. For the projection of the explicit period, Vix expectations were used in relation to the future of the business, whose main assumption is the increase in the vehicle base to meet the increased demand from current clients and enable the entry into new clients. Therefore, the Group did not identify impairment of intangible assets as of December 31, 2020. The assumptions of these tests are presented in the financial statements and interim accounting information for the respective periods. The main assumptions used in the calculation as of December 31, 2020 are shown as follows: The main assumptions used in the calculation as of December 31, 2019 are shown as follows:

(i) LAJIDA: Income before interest, taxes, depreciation and amortization.


83

Parent companyComputer

System

Other intangible

assets Total

Balances at January 1, 2019 30,248 2,598 32,846 Acquisitions 919 5,544 6,463 Disposal and write-offs (16) - (16) Reclassifications 6,785 (6,785) - Amortization (5,027) (22) (5,049)

- Balances at December 31, 2019 32,909 1,335 34,244

Balances at January 1, 2020 32,909 1,335 34,244 Acquisitions 7,549 2,342 9,891 Disposal and write-offs (12) - (12) Reclassifications 1,998 (1,998) - Amortization (5,845) - (5,845)

Balances at December 31, 2020 36,599 1,679 38,278

Annual average amortization rates (%)

SAP system (%) 10.0 - -Other 20.0 - -

With:

use of Weighted Average Cost of Capital (WACC) which is an appropriate parameter to determine the discount rate to be applied on free cash flows.

cash flow projections prepared by management with periods beginning in January 2020 through December 2029.

all projections were made in nominal terms, that is, considering the inflation effect. cash flows were discounted considering the mid period convention, based on the

assumption that cash flows are generated throughout the year.


84

ConsolidatedComputer

System

Other intangible

assetsGoodwill

LS RentalsSurplus of LS rentals Goodwill Total

Balances at January 1, 2019 32,540 2,738 26,064 62,770 2,678 126,790 Acquisitions 1,019 9,356 - - - 10,375 Disposal and write-offs (251) (7) - - - (258) Deferred income tax and social contribution - - (3,975) - - (3,975) Reclassifications 5,418 (5,411) 8,524 (8,524) - 7 Amortization (5,435) - - (3,169) (545) (9,149)

-

Balances at December 31, 2019 33,291 6,676 30,613 51,077 2,133 123,790

Balances at January 1, 2020 33,291 6,676 30,613 51,077 2,133 123,790 Acquisitions 7,704 7,869 - - - 15,573 Disposal and write-offs (5,356) (2,198) - - - (7,554) Deferred income tax and social contribution 1,077 - - 1,077 Reclassifications 10,604 (10,604) - - - - Amortization (6,702) - - (3,694) (545) (10,941)

- Balances at December 31, 2020 39,541 1,743 31,690 47,383 1,588 121,945

Annual average amortization rates (%)SAP system (%) 10.0 - - - - -Other 20.0 - - 18.5 - -

2020 2019 2020 2019

CurrentAcquisition of fixed assets - FINAME (Note 16.a) 16,059 38,259 22,387 64,263 Bank loan for investment (Note 16.b) 391,672 269,103 470,101 292,460 Debentures (Note 16.g) 61,722 3,468 96,830 3,443 Lease (Note 16.c) 2,594 2,580 3,666 18,042 Lease liability (Note 16.d) 1,092 686 6,580 4,531

473,139 314,096 599,564 382,739 Non-currentAcquisition of fixed assets - FINAME (Note 16.a) 22,202 60,520 29,208 104,514 Bank loan for investment (Note 16.b) 334,180 339,705 454,745 445,445 Debentures (Note 16.g) 492,021 550,988 536,574 630,530 Lease (Note 16.c) 3,397 5,829 6,220 20,392 Lease liability (Note 16.d) 2,389 702 11,471 10,896

854,189 957,744 1,038,218 1,211,777

1,327,328 1,271,840 1,637,782 1,594,516


Loans and financing


85

Parent company

In thousands of reais Acquisition of fixed assets -

FINAME (a)

Bank loan for investment (b)

Debentures (c) Lease payable

(d) Right-of-use

lease (e) Total

Balance at January 1, 2020 98,779 608,808 554,456 8,409 1,388 1,271,840 ChangesNew Contracts - 393,800 - - 3,074 396,874 Amortization (62,901) (344,402) - (2,367) (883) (410,553) Interest paid (3,694) (42,304) (26,267) (434) (100) (72,799) Recognized interest 6,077 32,126 25,554 383 186 64,326 Exchange-rate change - 77,824 - - - 77,824 Write-offs - - - - (184) (184) Total changes (60,518) 117,044 (713) (2,418) 2,093 55,488 Balance at December 31, 2020 38,261 725,852 553,743 5,991 3,481 1,327,328 Current 16,059 391,672 61,722 2,594 1,092 473,139 Non-current 22,202 334,180 492,021 3,397 2,389 854,189 Total 38,261 725,852 553,743 5,991 3,481 1,327,328 Average rate (p.a.) 6.15% 5.28% 4.61% 4.56% 7.53%Maturity 2027 2024 2023 2024 2025

December 31, 2020Lease liability

On March 20, 2020, VIX contracted working capital of R$ 30,000, with the principal maturing on March 23, 2023. On March 23, 2020, VIX contracted a loan in the amount of USD 9 billion (R$ 45,000), with the principal maturing on March 28, 2022. Simultaneously, a swap operation was contracted with the purpose of eliminating the risk of exposure in foreign currency, by exchanging the exchange rate variation plus a fixed rate for CDI rate + 4.10%. No expenses were incurred with this contracting. Due to the COVID-19 pandemic scenario, the Company contracted the following loans to reinforce its cash:

on April 13, 2020, VIX contracted a working capital loan of R$ 25,000, with the principal maturing on April 8, 2021.

on April 15, 2020, VIX contracted a working capital loan of R$ 10,000, with the

principal maturing on May 25, 2021.

on May 7, 2020, VIX contracted a working capital loan of R$ 83,800, with the principal maturing on February 8, 2021.

on May 28, 2020, VIX contracted a loan in the amount of R$ 150,000, with the

principal maturing on May 24, 2021. At the same time, a swap operation was contracted with the purpose of eliminating the risk of exposure to the interest rate by exchanging the fixed rate for a floating rate (211.26% of the CDI rate). No expenses were incurred with this contracting.

On June 8, 2020, the subsidiary LETS contracted a working capital loan in the amount of R$ 70,000, with the principal maturing on September 6, 2021.

On November 26, 2020, VIX contracted a working capital in the amount of R$ 50,000, with the principal maturing on December 1, 2023. Reconciliation of equity changes with cash flows from financing activities


86

Consolidated


FINAME

Bank loan for investment

Debentures Lease Lease liability Total

Balance at January 1, 2020 168,777 737,905 633,973 38,434 15,427 1,594,516 ChangesNew Contracts - 463,800 - - 8,100 471,900 Amortization (121,284) (366,886) - (28,039) (5,379) (521,588) Interest paid (6,294) (46,842) (29,751) (2,630) (1,105) (86,622) Recognized interest 10,396 38,262 29,182 2,121 1,192 81,153 Exchange-rate change - 98,607 - - - 98,607 Write-offs - - - - (184) (184) Total changes (117,182) 186,941 (569) (28,548) 2,624 43,266 Balance at December 31, 2020 51,595 924,846 633,404 9,886 18,051 1,637,782 Current 22,387 470,101 96,830 3,666 6,580 599,564 Non-current 29,208 454,745 536,574 6,220 11,471 1,038,218 Total 51,595 924,846 633,404 9,886 18,051 1,637,782 Average rate (p.a.) 6.16% 5.19% 4.60% 5.52% 7.53%Maturity 2027 2024 2023 2024 2025

December 31, 2020

Consolidated


FINAME

Bank loan for investment

Debentures Lease Lease liability Total

Balance at January 1, 2019 151,951 477,461 179,034 49,195 - 857,641 ChangesFirst-time adoption of CPC 06 (R2) / IFRS 16 - - - - 16,461 16,461 New Contracts 77,419 340,000 453,250 10,054 2,919 883,642 Amortization (64,266) (85,558) - (22,115) (3,939) (175,878) Interest paid (10,175) (38,591) (18,169) (4,337) (1,178) (72,450) Recognized interest 13,848 42,265 19,858 5,637 1,178 82,786 Exchange-rate change - 2,328 - - - 2,328 Write-offs - - - - (14) (14) Total changes 16,826 260,444 454,939 (10,761) 15,427 736,875 Balance at December 31, 2019 168,777 737,905 633,973 38,434 15,427 1,594,516 Current 64,263 292,460 3,443 18,042 4,531 382,739 Non-current 104,514 445,445 630,530 20,392 10,896 1,211,777 Total 168,777 737,905 633,973 38,434 15,427 1,594,516 Average rate (p.a.) 9.11% 8.85% 11.09% 11.46% 7.53%Maturity 2027 2024 2023 2024 2,025

December 31, 2019

Parent company


FINAME (a)

Bank loan for investment (b)

Debentures (c) Lease payable

(d) Right-of-use

lease (e) Total

Balance at January 1, 2019 82,044 422,761 179,034 4,302 - 688,141 ChangesFirst-time adoption of CPC 06 (R2) / IFRS 16 - - - - 1,893 1,893 New Contracts 50,526 240,000 373,250 5,354 364 669,494 Amortization (35,868) (61,414) - (1,580) (855) (99,717) Interest paid (5,791) (29,519) (13,426) (265) (124) (49,125) Recognized interest 7,868 35,386 15,598 598 124 59,574 Exchange-rate change - 1,594 - - - 1,594 Write-offs - - - - (14) (14) Total changes 16,735 186,047 375,422 4,107 1,388 583,699 Balance at December 31, 2019 98,779 608,808 554,456 8,409 1,388 1,271,840 Current 38,259 269,103 3,468 2,580 686 314,096 Non-current 60,520 339,705 550,988 5,829 702 957,744 Total 98,779 608,808 554,456 8,409 1,388 1,271,840 Average rate (p.a.) 9.59% 8.37% 8.71% 13.89% 7.53%Maturity 2027 2024 2023 2024 2,025

Lease liabilityDecember 31, 2019


87

Year Property, plant and equipment

Intangible assets Total



up to 1 year 2,594 - 2,594 3,666 - 3,666 01–05 years 3,397 - 3,397 6,220 - 6,220

5,991 - 5,991 9,886 - 9,886

Year Property, plant and equipment




up to 1 year 2,578 - 2,578 18,034 - 18,034 01–05 years 5,831 - 5,831 20,400 - 20,400

8,409 - 8,409 38,434 - 38,434

December 31, 2019


December 31, 2020


a) Acquisition of fixed assets – FINAME

Financing obtained for investment in heavy vehicles and equipment which annual interest rates range from 2.94% to 2.96% with inflation adjustment at UR TJLP at TLP, ranging from 2.13% to 6.38% or Selic ranging from 2.20% to 3.29% per annum, in addition to certain agreements entered into based on the Investment Support Program, with annual interest rates from 2.50% to 10% p.a. without restatement, with maturity from January 15, 2021 to August 15, 2027.

b) Bank loan for investment

Loans obtained for investment in vehicles and operating equipment that have: (i) annual interest rates of approximately from 1.50% p.a. to 4.50% p.a. (R$ 509,430) and restated by the CDI; (ii) US dollar exchange rate change, plus annual interest rate of 2.62% p.a. (R$ 46,780); (iii) EUR foreign exchange, plus annual interest rate ranging from 1.34% to 1.51% p.a. (R$ 145,356); (iv) fixed annual interest rates from 5.21% to 12.06% p.a. (R$ 223,280). Those contracts subject to exchange-rate change of U.S. dollar and Euro are linked to operations of position exchange of installments subject to exchange-rate change for fixed rates and adjustment at CDI and Libor (swap), with maturity from March 07, 2021 to June 18, 2024, which additional comments are described in Note 6. c) Lease Financial lease agreements for the acquisition of machinery, equipment and other assets, having: (i) annual interest rates of approximately from 1.59% to 2.51% (R$ 9,886), and a term between 48 and 60 months, and restated at CDI rate, as follows:


88

Parent company

Year FINAME Debenture Total

2022 4,954 2,367 432,337 176,292 727 616,677 2023 4,954 933 59,684 137,196 696 203,463 >2024 12,294 97 - 20,692 966 34,049

22,202 3,397 492,021 334,180 2,389 854,189

Consolidated


2022 10,765 3,458 470,525 243,845 5,284 733,877 2023 5,909 2,050 66,049 173,612 5,141 252,761 >2024 12,534 712 - 37,288 1,046 51,580

29,208 6,220 536,574 454,745 11,471 1,038,218

December 31, 2020

LeaseBank loan - Investment Lease liability

Bank loan - InvestmentLease Lease liability

d) Lease liability

The Group leases land for operating bases. These leases normally last 2 years, with renewal option after this period. The lease payments are annually restated, to reflect the market values.

Right-of-use liability for rental of properties. It has a fixed annual incremental rate of 7.53% and a term between 15 and 60 months.

e) Warranties

Financing facilities are guaranteed by the assets themselves, promissory notes and collateral of controlling shareholders.

f) Breakdown of installments

As of December 31, 2020 and 2019, the portion of non-current consolidated has the following maturities:


89

Parent company


2021 24,080 2,518 58,967 154,443 405 240,413 2022 16,208 2,308 432,337 108,332 129 559,314 After 2023 20,232 1,003 59,684 76,930 168 158,017

60,520 5,829 550,988 339,705 702 957,744

Consolidated


2021 43,429 14,332 93,956 183,610 559 335,886 2022 31,259 3,370 470,525 141,488 1,090 647,732 After 2023 29,826 2,690 66,049 120,347 9,247 228,159

104,514 20,392 630,530 445,445 10,896 1,211,777

December 31, 2019

LeaseBank loan - Investment Lease liability

Lease liabilityBank loan - InvestmentLease

g) Debentures

The main features of private non-convertible debentures are as follows: Classification of issue 2nd issuance Issuing date December 5, 2018 Final settlement date December 5, 2023 Quantity 180,000 Total value of the issuance R$ 180 million Type Debentures are unsecured, pursuant to the terms of

Article 58, head provision of the Corporation Law. Method They will be issued as nominative and registered, without

the issue of sureties or certificates. Monthly remuneration Average rates of interbank deposits (DI) + 1.60% p.a. Payment of monthly remuneration On a semi-annual basis as of June 5, 2020. Payment of principal R$ 180.0 million will be paid in 3 equal annual

installments as from December 5, 2021 to the maturity date.

Guarantees They will not have guarantees. Additional obligations – Financial ratios (tested every year end): Net debt/EBITDA equal or lower than 4.0

EBITDA/Net financial expense equal or higher than 3.50

Classification of issue 4th issuance of simple debentures - Let’s Rent a Car S.A. Issuing date February 8, 2019 Final settlement date February 15, 2023 Quantity 80,000 Total value of the issuance R$ 80 million Type Debentures are unsecured with additional personal

guarantee, pursuant to the terms of Article 58, head provision of the Corporation Law.


90

2020 2019 2020 2019 Current installment 61,722 3,468 96,830 3,443 Non-current installment 492,021 550,988 536,574 630,530

553,743 554,456 633,404 633,973


Method They will be issued as nominative and registered, without the issue of sureties or certificates.

Monthly remuneration Average rates of interbank deposits (DI) + 1.55% p.a. Payment of monthly remuneration Monthly, as of March 15, 2020 Payment of principal R$ 80.0 million will be paid in 25 equal monthly installments

as from February 15, 2021 to the maturity date. Guarantees Parent company’s surety (VIX Logística S.A.) Additional obligations – Financial ratios (tested every year end) Net debt/EBITDA equal or lower than 4.0

Classification of issue 3rd issuance Issuing date October 28, 2019 Final settlement date October 28, 2022 Quantity 373,250 Total value of the issuance R$ 373 million Type Debentures are unsecured, pursuant to the terms of Article

58, head provision of the Corporation Law. Method They will be issued as nominative and registered, without

the issue of sureties or certificates. Monthly remuneration Average rates of interbank deposits (DI) + 1.70% p.a. Payment of monthly remuneration On a semi-annual basis, as of April 28, 2020. Payment of principal R$ 373 million will be paid in a single installment due on

October 28, 2022 Guarantees They will not have guarantees. Additional obligations – Financial ratios (tested every year end) Net debt/EBITDA equal or lower than 4.0

EBITDA/Net financial expense equal or higher than 2.5

Debentures are subject to advance maturity upon breach of any non-financial obligation and incapacity to comply with structure clauses for issue of the Group’s deed. As of December 31, 2020, none of the items listed in the agreement, that could give rise to early maturity, were noted. Funding cost of debentures The transaction costs incurred in the issuance of debentures, which have not yet been allocated to the Group’s income, are presented by reducing the liability balance and appropriated to the income (loss) using the effective interest rate method. The amounts issued net of the transaction cost are as follows:


91

2020 2019 2020 2019

CurrentSocial security - FGTS/INSS 3,992 3,856 6,828 7,111 With personnel – Salaries/other 1,355 1,593 2,111 2,589 Provision - vacation, 13th salary andcharges

20,731 24,047 32,813 40,741

26,078 29,496 41,752 50,441


2020 2019 2020 2019

CurrentPIS/COFINS payable 3,597 2,130 5,062 4,675 ICMS payable 1,580 1,669 3,694 4,343 Service tax payable 4,351 4,617 5,137 5,770 Installment payment of taxes - REFIS 820 881 820 881 Retained 1,413 1,377 2,169 2,110 Other 22 257 43 276

11,783 10,931 16,925 18,055

Non-currentInstallment payment of taxes - REFIS 2,254 3,027 2,254 3,027

2,254 3,027 2,254 3,027

14,037 13,958 19,179 21,082


Index Limits 2020 2019

Net debt/EBITDA² Equal or less than 4.0 2.54 3.13

EBITDA² / Net financial expenses Greater or equal 2.5 5.36 4.18

Net debt¹: income (loss) from derivative is included.EBITDA² (Earnings before interest, taxes, depreciation, and amortization): measure of operating performance provided by Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA).

The chart below shows the financial covenants as of: Labor obligations payable

Taxes payable


92

2020 2019 2020 2019

CurrentConsortium accounts payable - - 662 1,608 Accounts payable for acquisition of companies 22,735 24,802 22,735 24,802 Freight of truck drivers payable 282 428 3,683 5,229 Other accounts payable 200 274 979 1,184

23,217 25,504 28,059 32,823

Non-currentConsortium accounts payable - - 1,605 4,481 Accounts payable for acquisition of companies - 22,734 - 22,734

- 22,734 1,605 27,215

23,217 48,238 29,664 60,038


2020 2019 2020 2019 Current assetsAccounts receivable Águia Branca Participações S.A. - - 12 34 AZUL Linhas Areas Brasileiras S/A - - 217 Kurumá Veículos Ltda. 4 7 15 34 Land Vitoria Comércio de Veículos Ltda 2 4 4 7 Savana Comércio de Veículos Ltda 629 465 629 465

Let’s Rent a Car S.A 17 - - - Salute Locação e Empreendimentos Ltda 7 3 - - VD Comércio de Veículos Ltda. 264 537 280 547 Viação Águia Branca S.A. - - - 31 VIX Transportes Dedicados Ltda 365 224 - - Other - 20 18 22

1,288 1,260 1,175 1,140

Related party creditsAB Energias Renováveis 1,033 - 1,249 - Águia Branca Logística Ltda. 166 165 - - Águia Branca Participações S.A. 1,483 1,729 1,483 1,729 Autoport Transportes e Logística Ltda. 19 2 - - VD Comércio de Veículos Ltda. 1,786 10,298 1,786 10,298 VIX Transportes Dedicados Ltda 550 990 - -

5,037 13,184 4,518 12,027


Accounts payable Balances and transactions with related parties

The Group carries out operating transactions with companies of Águia Branca Group which are priced based on market conditions, considered by Management as on arm’s length conditions and adequate to preserve the interests of both parties involved in the business in which it takes part. The balances and types of the main transactions are presented below:


93

2020 2019 2020 2019 Current liabilitiesSuppliers - parts, vehicles and servicesAB Comércio de Veículos Ltda. 35 38 35 - Autoport Transportes e Logística Ltda. 82 14 - - Kurumá Veículos Ltda. 42 13 42 134 VD Comércio de Veículos Ltda.) 135 3,526 204 4,096 Viação Águia Branca S.A.(v) 2,413 - 2,413 - Viação Salutaris e Turismo S.A.) 668 - 668 - VIX Transportes Dedicados Ltda 63 114 - - Other 4 7 5 45

3,442 3,712 3,367 4,275

Debit with related partiesÁguia Branca Logística Ltda. 98 73 - - Autoport Transportes e Logística Ltda. 22 41 - - Vix Transportes Dedicados Ltda 19 90 - -

139 204 - -


Income (loss) 2020 2019 2020 2019

Revenue from goods and services

Águia Branca Participações S.A. 249 333 397 424 AZUL Linhas Areas Brasileiras S/A - - 742 - Kurumá Veículos S.A. (i) 3,197 129 3,302 277 Land Vitoria Comércio de Veículos Ltda 9 - 35 - MVI Administ. e Investidora Imob. Ltda 6 107 6 107 Salute Locação e Empreendimentos Ltda 111 65 - - Savana Comércio de Veículos (ii) 6,127 5,831 6,127 5,831 VD Comércio de Veículos Ltda. (ii) 2,913 4,361 3,138 4,461 Viação Águia Branca S.A. 2 46 40 155 Vitoria Motors Ltda. 118 23 143 56 VM Comércio de Veículos Ltda - 50 113 151 VIX Transportes Dedicados 2,117 1,281 - - Other 90 37 126 74

14,939 12,263 14,169 11,536



94

2020 2019

Remuneration 11,533 11,723 Other short-term benefits 223 186 Other long-term benefits (i) 2,459 2,708

14,215 14,617

Income (loss) 2020 2019 2020 2019 Cost of servicesAB Comércio de Veículos Ltda.) 2,982 2,061 2,990 2,078 Águia Branca Logística Ltda. 577 - - - Águia Branca Participações S.A.) 2,554 4,867 2,564 4,873 Autoport Transportes e Logística Ltda. 936 2,001 - - Kurumá Veículos S.A. (iii) 1,205 498 1,252 579 Rio Novo Locações Ltda. (v) 1,398 1,238 2,075 1,933 VD Comércio de Veículos Ltda.) 4,312 6,443 5,798 8,307 Savana Comércio de Veículos (iii) 235 - 249 - Viação Águia Branca S.A. (vi) 10,899 518 10,904 518 Viação Salutaris e Turismo S.A. (vi) 2,121 - 2,121 - VIX Transportes Dedicados 8,806 2,376 - - Other 116 280 112 311

36,141 20,282 28,065 18,599

Acquisition of fixed assetsAutoport Transportes e Logística Ltda. - 144 - - Kurumá Veículos S.A. (vii) 183 190 183 330VM Comércio de Veículos Ltda. (vii) 1 - 1 - VD Comércio de Veículos Ltda. (vii) 28,348 42,130 39,842 119,709 VIX Transportes Dedicados 221 - - -

28,753 42,464 40,026 120,039


(i) Sale of assets for sale (ii) Transport of new vehicles (iii) Acquisition of parts and services for maintenance of the Group’s fleet. (iv) Payments related to sharing of Information Technology – IT resources and business

consultancy, which costs are calculated according to the services used. (v) Payments related to transactions related to lease of properties. (vi) Payments relating to the lease of operating equipment (vii) Acquisition of vehicles to be used in the Group’s operating activity. Transactions among

companies are conducted in usual market conditions and amounts. (viii) Payments related to transactions related to lease of properties and vehicles for tourism.

a) Remuneration of key management personnel

Key management personnel include board members, directors and administrators. Annual remuneration for 2020 was established at R$ 19,566 (R$ 16,174 in 2019), pursuant to the resolution approved through minutes of the Board of Directors’ Meeting held on December 31, 2020. Remuneration paid to directors, administrators and board members for their services in the years ended December 31, 2020 and 2019 are as follows:

(i) Such amounts refer to INSS, private pension plan and life insurance.


95

2020 2019 Águia Branca Logística Ltda. - 1,586 VIX Transportes Dedicados Ltda 111,010 105,098 Let's Rent a Car S.A 152,192 79,516

263,202 186,200

Parent company

Provisions Labor Civil Total

Balances at January 1, 2019 15,117 143 15,260

Provision 3,075 1,176 4,251

Updating of Proceedings 2,738 252 2,990

Write-offs due to payment (5,219) (165) (5,384)

Reversal of provision (3) (135) (138)


Balances at January 1, 2020 15,708 1,271 16,979

Provision 2,336 2,179 4,515

Updating of Proceedings 260 (372) (112)


Reversal of provision - (1) (1)


b) Guarantees and sureties to third parties The Group guarantees loans contracted with financial institutions by its subsidiaries, namely: Provision for lawsuits


The Group is a party in several judicial and administrative proceedings. Provisions are recognized when the Group has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made. The expense referring to any provision is presented in the statement of income. Determination of the likelihood of loss includes determination of evidences available, hierarchy of laws, jurisprudence available, more recent court decisions and relevance thereof in legal system, as well as evaluation of external lawyers. Provisions are reviewed and adjusted so as to consider changes in circumstances, such as applicable statute of limitations, conclusions of tax audits or additional exposures identified based on new matters or court rulings. The changes in accounts of provision for contingencies and judicial deposits to cover probable risks is comprised as follows:


96

Consolidated

Provisions Labor Civil Total

Balances at January 1, 2019 21,608 403 22,011

Provision 4,455 1,255 5,710

Updating of Proceedings 2,491 292 2,783


Reversal of provision (35) (135) (170)


Balances at January 1, 2020 22,304 1,432 23,736

Provision 3,066 3,128 6,194

Updating of Proceedings (320) (348) (668)

Write-offs due to payment (3,226) (1,180) (4,406)

Reversal of provision - (204) (204)


Parent company

Judicial deposits Tax Labor Civil Total

Balances at January 1, 2019 - 15,215 49 15,264

Provision 45 2,958 - 3,003

Inflation adjustment 1 777 3 781

Write-offs due to payment - (4,043) - (4,043)

Balances at December 31, 2019 46 14,907 52 15,005

Balances at January 1, 2020 46 14,907 52 15,005

Provision - 440 440

Inflation adjustment - 873 873

Write-off (46) (2,967) 3 (3,010)

Balances at December 31, 2020 - 13,253 55 13,308


97

Consolidated

Judicial deposits Tax Labor Civil Total

Balances at January 1, 2019 - 21,479 49 21,528

Provision 45 3,850 90 3,985

Inflation adjustment 1 1,048 3 1,052

Write-offs due to payment - (5,015) - (5,015)


Balances at January 1, 2020 46 21,362 142 21,550

Provision 8 847 33 888

Inflation adjustment - 1,282 3 1,285

Write-off (46) (5,305) (72) (5,423)


21.1 Deposits and court-ordered freezing Judicial deposits and blocks refer to amounts deposited in account or blocks of bank balances determined in court, to guarantee possible executions required, or amounts deposited in judicial settlement to replace payments of accounts payable that are being challenged in court.

21.2 Tax contingencies The Group and its subsidiaries are parties to several tax lawsuits represented by tax assessment notices related to the questioning of certain procedures adopted by the Management. Of the total lawsuits, the amount of R$ 79,391 (R$ 72,351 as of December 31, 2019) refers to claims classified with possible risk of loss, in which the amount of R$ 29,224 (R$ 24,437 as of December 31, 2019) refers to State-level claims (ES and RJ), R$ 48,612 (R$ 47,244 as of December 31, 2019) in the Federal level and R$ 1,555 (R$ 670 as of December 31, 2019) in the Municipality level. As of December 31, 2020, there are no lawsuits classified as probable loss. The main tax claims, classified as possible risk of loss, according to the opinion of our legal consultants, are shown below:

(1) In November 2014, the parent company Vix Logística S.A. was assessed by tax authorities (RFB) in the amount of R$ 28,838 (R$ 46,406 amount adjusted on December 31, 2020), in which it challenges the themes: PIS and COFINS credits in import transactions and suspension of PIS and COFINS recorded for freights to the export trade company, in addition to disallowing items that the Group classified as input to


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record PIS and COFINS credits. The Group presented defense and currently the claim is in Administrative Council of Tax Appeals. (2) In February 2019, the Finance Department (SEFAZ-ES) assessed the parent company VIX Logística S.A. in the amount of R$ 7,869 (R$ 18,692, amount adjusted on December 31, 2020) for the non-payment of differential rate in transfers (down payments) of property, plant and equipment and use and consumption. The Group presented defense and currently the claim is in the 1st administrative level.

21.3 Labor contingencies

As of December 31, 2020, the Group and its subsidiaries were parties in 1,139 (1,125 as of December 31, 2019) labor claims, of which R$ 74,965 (R$ 55,624 as of December 31, 2019) is classified as possible risk of loss and R$ 21,824 (R$ 22,304 as of December 31, 2019) is classified as probable risk of loss (consolidated), fully provided for, since it corresponds to the probable cash outflow expected according to the legal evaluation of the Group’s legal advisors. Labor contingencies to which the Group is a party were typically initiated by former employees after their dismissal, usually claiming the payment of overtime. Additionally, the Group is a party to certain class actions challenging working hours and outsourcing of activities (joint liability) by certain clients.

21.4 Civil liability contingencies As of December 31, 2020, the Group and its subsidiaries were parties to 335 (204 as of December 31, 2019) civil lawsuits, of which 105 (110 as of December 31, 2019) are comprised by lawsuits where the Group is the defendant and 220 (94 in 2019) as plaintiff. Of the lawsuits in which the Group is the defendant, R$ 19,912 (R$ 19,652 as of December 31, 2019) is classified as possible risk of loss and R$ 2,828 (R$ 1,432 as of December 31, 2019) is classified as probable risk of loss (consolidated), according to the lawyers who handle the lawsuits, and a provision was recognized in that amount. Civil contingencies do not involve significant amounts and refer mainly to indemnity claims referring to traffic accidents.

21.5 Contingencies assets On December 19, 2019, VIX filed an Ordinary Action regarding the divergence of payment amounts in view of the provisions of the contractual draft agreed between the parties. The purpose of this action is i) the declaration that the contract entered into between the parties does not allow for a discount of prices due to the distance of transportation of the materials, as applied by the contractor; ii) the declaration of illegality of the contractor's conduct to impose such discounts on contract measurements. iii) the condemnation of the contractor to refrain from making, in the measurement of the contract, the discounts due to the distance of the transport of the materials; and iv) condemnation of the contractor to the payment of the amounts it failed to pay to VIX due to the mistaken imposition of discounts due to the distance of transportation of the materials, already


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ShareholdersNumber of common

sharesInterest (%)

Number of common shares

Interest (%)

International Finance Corporation (IFC) 9,011,241 10.64 9,011,241 10.64Águia Branca Participações S.A. 72,690,672 85.81 72,690,672 85.81IFC ALAC Brasil FIP 3,003,747 3.55 3,003,747 3.55Kaumer Chieppe 6 <0.01 6 <0.01Total 84,705,666 100 84,705,666 100

2020 2019

carried out in the amount of R $ 69,369, (R $ 78,400, value updated in December 31, 2020) as well as in the conviction of the contractor to pay the amounts corresponding to discounts of the same nature that occur in the course of the demand filed. Shareholders’ equity

a) Capital

As of December 31, 2020, subscribed and paid-up capital is R$ 332,000, represented by 84,705,666 nominative common shares with no par value. Authorized capital is represented by 750,000,000 common shares, with no par value. b) Capital reserves

Refer to goodwill reserve in capital subscription occurred in 2009.

c) Profit reserve

The Group, in compliance with its bylaws, maintains a statutory profit reserve named “Investment Reserve”, which purpose is to ensure funds to finance the expansion of the Group’s activities and/or its subsidiaries and associated companies, including through subscription of capital increases or creation of new undertakings, which may be organized with the remaining balance of net income after legal and statutory deductions, and these reserves should not exceed the capital amount subtracted from balances of the Group’s other profit reserves.

d) Legal reserve

With the formation of rate of 5% on net income up to the amount of 20% of the capital, pursuant to the Corporation Law.

e) Equity valuation adjustment

It refers to: (i) the effective portion of the cumulative net change in fair value of hedge instruments used in the cash flow hedge for the recognition of cash flows that were


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2020 2019

Net income for the year 74,672 44,560 Formation of legal reserve (5%) (3,734) (2,228) Basis of calculation for dividends 70,938 42,332 Minimum compulsory dividend (25%) 17,735 10,583 Proposed additional dividend (6.58%) 4,667 2,785 22,402 13,368 Percentage on net income for the year - % 30.0% 30.0%

Dividend per share 0.2645 0.1578

Dividends paid 2020 2019

Águia Branca Participações S.A. 18,964 8,718 IFC Alac Brasil 784 607 International Finance Corp. - IFC 2,351 834 22,099 10,159

hedged; (ii) revaluations of the Group’s fixed assets, net of income tax and deferred income tax and social contribution on the revaluation reserve total balance; (iii) accumulated translation adjustments with foreign currency differences deriving from the translation of financial statements of foreign operations.

f) Distribution of dividends

In 2020, the amount of R$ 22,099 (R$ 10,159 as of December 31, 2019) was distributed, and R$ 6,689 refers to 2019 and R$ 15,409 to 2020. Additionally, the amount of R$ 6,993 to be paid in 2021.

Income tax and social contribution


23.1 Current balances The corporate income tax (“IRPJ”) and social contribution on net income (“CSLL”) are calculated based on the current rates (25% for corporate income tax, 10% for the surcharge of corporate income tax on income exceeding R$ 240 per annum and 9% of


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2020 2019 2020 2019

Income before income tax and social contribution 101,500 47,457 113,118 66,651 Combined nominal rate - % 34 34 34 34

(34,510) (16,135) (38,460) (22,661)

Adjustment to the calculation of effective rate(+) Additions - permanent items Other non-deductible costs and expenses 488 (601) 922 (226) (-) Exclusions - permanent items Equity in net income of subsidiaries 7,825 13,225 - - Tax loss for the year - - - 614 Other - - (892) 186 Effects of the tax calculation through deemed income – investees (631) 614 (16) (4)

(=) IR and CSLL expenses on income (loss) (26,828) (2,897) (38,446) (22,091)

Current (26,416) 615 (42,228) (21,032) Deferred assets (412) (3,512) 3,782 (1,059)

Effective rate 26% 6% 34% 33%


social contribution on net income) and the offset of tax losses and negative basis of social contribution is considered to determine the enforceability (when applicable). Recognized according the tax rates in force, based on adjusted income (taxable income) or on revenues from services rendered (deemed income) for tax purposes: Reconciliation of provisions for income tax and social contribution:

23.2 Deferred balances Deferred income tax assets are recognized for all deductible temporary differences and tax losses not used to the extent that it is probable that taxable profit will be available so that deductible temporary differences can be realized. The book value of deferred income tax assets is reviewed at each balance sheet date and written off to the extent that it is more likely that taxable profits will be available to allow that all or part of deferred income tax assets to be used. Deferred taxes related to items recognized directly in equity is also recognized in shareholders’ equity and not in the statements of income. Deferred income tax assets and liabilities are presented at net value in balance sheet when there is the legal right and the intention of offsetting them upon calculation of current taxes, in general related to the same legal entity and the same Tax Authority.


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2020 2019 2020 2019 2020 2019 2020 2019

Tax creditsProvision for contingencies 6,118 5,774 8,115 7,804 344 585 311 587 ICMS credits merged into fixed assets 613 632 613 632 (19) 35 (19) 35 Swap provisions/fair value 11,486 11,486 12,689 12,689 - 11,486 - 12,689 Provision for exchange rate change 7,931 1,013 15,330 1,346 6,918 735 13,984 1,068 Provision for income tax and other provisions 113 190 3,142 2,982 (77) 188 160 215 Impairment losses on accounts receivable 449 277 1,980 1,524 172 97 456 1,168 Depreciation of surplus 2,332 1,077 2,332 1,077 1,255 1,077 1,255 1,077 Tax loss and negative basis of social contribution - 304 31,350 16,540 (304) 304 14,810 11,529 Total gross tax credits 29,042 20,753 75,551 44,594 8,289 14,507 30,957 28,368 Tax creditsReview of the useful life of the fixed asset 73,420 70,946 116,650 108,940 2,474 5,059 7,710 12,522 Revaluation reserve * 4,461 4,477 4,461 4,477 - - - - Provisions Swap 20,415 14,182 29,006 15,667 6,233 12,954 13,339 14,439 Provision for Hedge Accounting * (325) 21 (119) 253 - - - - Leases 3,625 3,755 12,315 6,363 (130) (65) 5,952 2,320 Surplus * 18,444 17,367 18,444 17,367 - - - - Restatement of appeal-related deposits 1,320 1,196 1,690 1,516 124 71 174 146 Total gross tax debts 121,360 111,944 182,447 154,583 8,701 18,019 27,175 29,427 Total tax debits, net 92,318 91,191 106,896 109,989 412 3,512 (3,782) 1,059

* Does not change the result


Equity balance Effect in income (loss)



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Insured property Insured risks Start End

Shareholders’ equity Fire/lightning/explosion/ electrical damage, windstorm,Hurricane, hail, theft, robbery. 3,500 16/02/2020 16/08/2021

Shareholders’ equity and inventoriesBasic Coverage, Electric Damage and Risk Place 50,000 16/02/2020 16/08/2021Property and goods Cargo Road Transportation (RCTR-C and RCF-DC) 10,000 10/10/2020 10/10/2021Property and goods Road Transportation in International Travel

(RCTR-C, RCTR-VI and RCF-DC) US$ 1,050 31/03/2020 31/03/2021Life insurance Death. Accidental death, accidental disability, permanent 12 x insured party

functional disability due to illness. salary 31/03/2020 31/03/2021Administrators’ insurance Directors’ civil liability 50,000 27/03/2020 27/03/2021RCG General civil liability insurance 40,000 25/04/2020 25/04/2021RCO General Civil Liability Insurance (Buses) 4,034 07/08/2020 07/08/2021RCF-V General Civil Liability Insurance (Vehicles) 1,800 01/10/2020 01/10/2021

EffectivenessAmount of coverage

Insurance coverage

The Group and its subsidiaries maintain insurance with coverage and indemnity limits considered sufficient by Management to cover main risks on its assets. The main liabilities for transactions carried out by the parent company and its subsidiaries for possible damages causes to third parties resulting from its activities and also the main risks of damage to physical equity, thus protecting its assets from substantial and/or unexpected disbursements are transferred to the insurance market. Considering financial costs in the purchase of insurance for the entire fleet of vehicles, the Group adopts risk management practices to minimize the frequency and severity of losses. Additionally, the Group maintains specific policies for Optional Vehicle Liability Insurance (“RCF”) and Mandatory Civil Liability for Road Transportation of passengers (“RCO”). As of December 31, 2020, the Group presented the following main insurance policies contracted from third parties:


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Net revenue from sales and services

a) Group’s accounting practice Rendering of services Revenues from the provision of services are recognized to the extent that the entity transfers the significant risks and rewards inherent in the provision of services to the counterpart, when it is probable that the economic benefits associated with the transaction will flow to the Group, as well as when its value and related costs incurred can be reliably measured. The performance obligation is identified based on the types of contracts entered into by the Group with its clients, which can be a Vehicle or Equipment Rental, where the performance obligation can be understood as the Group’s promise to provide and maintain a vehicle or equipment., always within the conditions provided for in the contracts, or a Rental with driver services, where in addition to the obligation to provide the asset, the provision of services also generates a performance obligation, as well as the provision of services, where the Group has a broad portfolio of services that are provided to its clients, such as transportation, cargo handling, whose performance obligation is established based on the identification of the type of service for each contract entered into. For the GTF and Dedicated Logistics segments, the prices of services are fixed contractually. The revenue of these segments is mainly comprised by the provision of logistics services, including cargo road transportation of intercity, interstate cargo, collective road transportation in the charter modality, lease of equipment, vehicles and labor, among others. For the Automotive Logistics segment, the price of road freight is composed of a portion representing the fixed cost of the operation, a portion representing the variable cost (distance between origin and destination), and considering the morphological classification of the vehicle according to its weight and dimensions. The amount is charged per unit transported. The revenue of this segment mainly consists of the provision of vehicle transport services. For Segment V1, the service price is composed of the mileage of the contracted route, in addition to the variables of demand, time and need to reposition the fleet. The revenue of this segment is mainly composed by the provision of services for the transportation of people and the rental of vehicles. For all the Group’s revenue, the recognition criteria are normally met as the service is provided.


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2020 2019 2020 2019

Revenues from services rendered 996,219 969,261 1,712,391 1,799,383 Revenues from sales of assets 101,843 63,196 191,894 116,657

Taxes and/or deductionsICMS (12,611) (10,497) (29,972) (33,361) ISS (27,310) (26,491) (35,667) (36,237) PIS (13,095) (13,575) (24,691) (27,030) COFINS (60,335) (62,541) (113,744) (124,517) INSS (Social security) - - (4,134) (4,926) Canceled sales - - (1,277) (379)

(113,351) (113,104) (209,485) (226,450)

Net operating revenue 984,711 919,353 1,694,800 1,689,590


2020 2019

Chartering 287,706 192,752 Lease 224,060 212,600 Rendering of services 401,015 467,880 Cargo transportation 81,589 92,688 People Transport 1,849 3,341 Revenues from services rendered 996,219 969,261

Sales revenues 101,843 63,196

Gross revenue 1,098,062 1,032,457

Taxes and/or deductions (113,351) (113,104)

Net operating revenue 984,711 919,353

Time for revenue recognitionServices transferred over time 994,370 969,261 Services transferred at a specific time 103,692 63,196 Revenue from contract with customers 1,098,062 1,032,457

Parent company

Sale of assets Revenues from the sale of assets are recognized upon execution of the purchase and sale agreement, which is the time in which there is transfer of asset risks and rewards to the purchaser. The table below shows the detailed breakdown of revenue from contract with customer of the main natures of services and time of revenue recognition, and also includes the reconciliation of detailed breakdown of revenue with Group’s reportable segments.


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2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

Chartering 2,027 2,144 - - 288,442 192,748 - - 290,469 194,892 Lease 229,822 171,221 - - 167,465 168,764 9,039 11,875 406,326 351,860 Rendering of services 8,189 9,475 2,472 4,029 509,433 572,882 - - 520,094 586,386 Cargo transportation - - 331,295 435,074 143,444 221,444 - - 474,739 656,518 People Transport - - - - - - 20,763 9,727 20,763 9,727 Revenues from services rendered 240,038 182,840 333,767 439,103 1,108,784 1,155,838 29,802 21,602 1,712,391 1,799,383

Sales revenues 71,413 63,223 115 318 108,517 49,792 11,849 3,324 191,894 116,657

Gross revenue 311,451 246,063 333,882 439,421 1,217,301 1,205,630 41,651 24,926 1,904,285 1,916,040

Taxes and/or deductions (23,271) (17,614) (45,602) (59,526) (135,869) (146,225) (4,743) (3,085) (209,485) (226,450)

Net operating revenue 288,180 228,449 288,280 379,895 1,081,432 1,059,405 36,908 21,841 1,694,800 1,689,590

V1Consolidated

TotalDedicated logisticsGTF Automotive logistics


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Cost of services rendered 2020 2019 2020 2019

Manpower and charges (319,214) (347,963) (514,064) (569,404) Inputs (121,300) (124,269) (189,039) (184,532) Depreciation and amortization (125,077) (116,444) (225,089) (194,165) Rental of real estate and equipment (22,426) (13,673) (30,412) (24,051) Outsourced services (40,119) (42,013) (65,416) (69,951) Aggregated and third parties (13,846) (15,941) (147,689) (203,227) Fleet renewal (77,944) (49,665) (156,283) (102,040) IPVA/Licensing/Insurance (17,626) (18,710) (34,031) (30,323) Maintenance of fleet (10,880) (12,024) (16,459) (24,929) Toll/Tracking (7,643) (8,782) (23,115) (27,548) Other costs (28,769) (28,825) (15,360) (12,565)

(784,844) (778,309) (1,416,957) (1,442,735)


Administrative, commercial and general 2020 2019 2020 2019

Manpower and charges (30,948) (35,603) (50,960) (51,081)Outsourced services (9,457) (10,573) (9,953) (11,967)Depreciation (7,011) (5,729) (7,128) (5,757)Taxes, fees and other contributions (5,842) (4,765) (7,686) (5,949)Travel, meals and accommodation (943) (6,947) (964) (6,966)Contingency (1,014) (1,746) (917) (1,879)Rentals/Communication/Water/Energy (1,184) (1,238) (1,461) (2,308)IT equipment (5,690) (6,789) (6,486) (3,436)Expected losses (provision/reversal) (518) (308) (1,366) (3,436) Other expenses (4,001) (2,410) (5,466) (7,307)

(66,608) (76,108) (92,387) (100,086)


Cost of services rendered and expenses per type

Represented by:


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2020 2019 2020 2019

Financial expensesInterest on loans and financing (64,491) (59,919) (79,797) (86,397) Foreign exchange loss (113,151) (33,904) (147,047) (41,605) Other interest determined (2,544) (1,042) (5,703) (1,221) Swap operations (43,531) (53,151) (61,483) (60,689) Right-of-use interest (123) (108) (1,128) (1,154) Other financial expenses (6,428) (6,678) (10,547) (10,972)

(230,268) (154,802) (305,705) (202,038)

Financial revenuesForeign exchange gain 36,385 32,149 49,501 38,857 Yield on interest earning bank deposits 8,509 5,703 12,011 11,945 Discounts and interest received 1,924 2,123 2,421 2,765 Swap operations 122,391 55,749 160,033 62,669 Other financial revenues 1,750 1,461 2,535 2,026

170,959 97,185 226,501 118,262

Net financial income (loss) (59,309) (57,617) (79,204) (83,776)


Financial revenues and expenses

Represented by:

Operating segment

The Group’s activities consist in the provision of logistics solutions, through the management and outsourcing of fleets, handling of machine and equipment for movement of goods, transportation of vehicles and people via application. Segment reporting is being presented in relation to the type of nature of the products and services provided that were identified based on the management structure, aiming to make operational decisions, and in the performance evaluation. The Group’s Executive Director reviews the internal management reports for each type of service provided.

Management and outsourcing of fleets: the following was considered: the nature of the activity, based on the simple rental of movable goods (in contrast to the operations of logistics services with dedicated labor and equipment); the shorter duration of its contracts in relation to the others (Between 24 months to 36 months).

Automotive logistics: the nature of the activity, based on the transportation of new, national and imported vehicles, manufactured by the major carmakers renowned


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in the global scenario to the car dealers. We also provide activities related to such transportation, such as management of yard and storage of vehicles, automotive services, port operations and transportation of containers. We are strategically located near the clients’ plants, which gives us flexibility and agility in the rendering of such services.

Dedicated logistics: the nature of the activity, based on the provision of services (rental of machinery and equipment, transportation of passengers and cargo, reverse logistics, among others) to corporate clients exclusively; Longer contracts, of 54 months on average and customized to clients; Needing a robust structure and active management to operate in the segment.

V1: the following was considered: the nature of the activity, based on the offer of vehicles with a driver for short/medium distances; the lack of previously contracted demand, as it occurs in the remaining operations; its form of monitoring and management fully based on the digital/technological sphere, and especially the type of client, being the only activity of the Group to work with individuals.

In the LA segment, the Group had 3 clients who, individually, contributed with more than 10% of gross operating revenue; in the LD segment, the Group had 3 clients who individually represented more than 10% of gross operating revenue; in the GTF segment, the Group had two (2) clients who individually represented more than 10% of gross operating revenue, while in the segment V1 there is no client holding more than 10% of gross operating revenue.

a) Information on reporting segments

As of December 31, 2020, represented as follows:


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December 31, 2020

GTFAutomotive Logistics

Dedicated Logistics

V1Balances not

allocatedConsolidated

Net revenue from sales and services 288,180 288,280 1,081,432 36,908 - 1,694,800 Costs with sales and rendering of services (216,876) (252,302) (908,634) (39,145) - (1,416,957)

Gross income 71,304 35,978 172,798 (2,237) - 277,843

Administrative/general/commercial expenses (14,980) (15,856) (59,844) (1,707) - (92,387) Other revenues, net 1,310 619 4,835 102 - 6,866

(13,670) (15,237) (55,009) (1,605) - (85,521)

Operating income before financial income (loss) 57,634 20,741 117,789 (3,842) - 192,322

Financial expenses (305,705) Financial revenues 226,501

Income before income tax and social contribution 113,118

Current income tax and social contribution (42,228) Deferred income tax and social contribution 3,782

Net earnings for the period 74,672

Other reportable assets 56,757 6,224 74,109 - 937,683 765,778 Accounts receivable 45,825 54,381 244,437 10,177 - 354,820 Property, plant and equipment and intangible assets 518,872 76,692 654,197 63,460 223,332 1,536,553 Reportable liabilities 228,628 40,257 174,511 - 1,515,127 1,958,523 Depreciation (71,085) (18,187) (139,861) (3,084) - (232,217)

December 31, 2019

GTFAutomotive Logistics

Dedicated Logistics

V1Balances not

allocatedConsolidated

Net revenue from sales and services 228,449 379,895 1,059,405 21,841 - 1,689,590 Costs with sales and rendering of services (166,244) (314,374) (931,777) (30,340) - (1,442,735)

Gross income 62,205 65,521 127,628 (8,499) - 246,855

Administrative/general/commercial expenses (14,861) (21,202) (62,889) (1,134) - (100,086) Other revenues, net 980 1,214 1,445 19 - 3,658

(13,881) (19,988) (61,444) (1,115) - (96,428)

Operating income before financial income (loss) 48,324 45,533 66,184 (9,614) - 150,427

Financial expenses (202,038) Financial revenues 118,262

Income before income tax and social contribution 66,651

Current income tax and social contribution (21,032) Deferred income tax and social contribution (1,059)

Net earnings for the period 44,560

Other reportable assets 85,198 93,667 141,788 - 737,643 1,058,296 Property, plant and equipment and intangible assets 436,866 80,897 757,615 35,246 209,463 1,520,087 Reportable liabilities 153,010 47,005 234,324 - 1,496,917 1,931,256 Depreciation (48,248) (16,815) (132,572) (2,287) - (199,922)


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2020 2019

Net income for the year 74,672 44,560 Outstanding average weighted common shares 84,706 84,706 Basic and diluted earnings per share (In reais) 0.88154 0.52605

Sale of property, plant and equipment 2020 2019 2020 2019 Net book value 16,563 406 57,429 37,326 Income/loss in disposal of property, plant and equipment 5,843 (11) 10,865 1,684 Amounts received in disposal of property, plant and equipment 22,406 395 68,294 39,010

Sale of non-current assets held for sale 2020 2019 2020 2019 Net book value 61,380 49,260 98,854 64,729 Income/loss from disposal 18,057 13,541 24,746 12,918 Amounts received in disposal 79,437 62,801 123,600 77,647


ConsolidatedParent company

Basic and diluted earnings per share

The Group does not have potential shares, i.e., no instrument or agreement that may result in the issue of shares, reason why the earnings per diluted share have not been presented. Other disclosures on cash flows

In the statements of cash flows, the result of sale of property, plant and equipment and goods available for sale comprises:

30.1 Non-monetary transactions

a) FINAME and lease

Non-monetary transaction for the acquisition of the fleet through FINAME financing and lease. In the fiscal year ended December 31, 2020, there was no change in the amounts of these transactions, as of December 31, 2019, R$ 55,880 in parent company and R$ 87,473 in consolidated.


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André Luiz Chieppe Finance and Investor Relations’ Officer

Ana Silvia Calegari Gava Nubia Carla Freitas Santos Souza Controllership Manager Accountant - CRC 9485/ES

b) Right-of-use assets Non-monetary transaction to right-of-use assets (exclusive for properties). In the fiscal year ended December 31, 2020, the amount of these transactions was R$ 2,890 (R$ 2,243 on December 31, 2019) in parent company and R$ 7,916 (R$ 19,380 on December 31, 2019) in consolidated.

Subsequent events

Following on from the material fact disclosed on June 30, 2020, when the shareholder ALAC triggered the put option PUT clause and the shareholders' agreement was added, on January 5, 2021 the transaction was concluded so that Águia Branca Participações S/A now holds 89.36% shares of VIX Logística S/A.

VIX Logística S.A.

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Transcript of VIX Logística S.A.