Vamos Locação de Caminhões Máquinas e Equipamentos S A : Dados Econômico-Financeiros

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VAMOS LOCAÇÃO DE CAMINHÕES, MÁQUINAS E EQUIPAMENTOS S.A. AND ITS SUBSIDIARIES

Parent company and consolidated quarterly information - ITR related to the quarter ended September 30, 2023

(A free translation of the original in Portuguese)
Contents
PERFORMANCE COMMENT	1
BALANCE SHEET	30
STATEMENT OF INCOME	31
STATEMENT OF COMPREHENSIVE INCOME	32
STATEMENT OF CHANGES IN EQUITY	33
STATEMENT OF CASH FLOWS - INDIRECT METHOD	34
STATEMENT OF VALUE ADDED	35
Notes to the parent company and consolidated financial statements
1.	GENERAL INFORMATION	36

2. BASIS OF PREPARATION AND PRESENTATION OF THE PARENT COMPANY AND CONSOLIDATED FINANCIAL

STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES	43
3.	USE OF ESTIMATES AND JUDGMENTS	43
4.	SEGMENT INFORMATION	44
5.	FINANCIAL INSTRUMENTS AND RISK MANAGEMENT	46
6.	CASH AND CASH EQUIVALENTS	62
7.	MARKETABLE SECURITIES AND FINANCIAL INVESTMENTS	62
8.	TRADE RECEIVABLES	62
9.	INVENTORIES	63
10.	FIXED ASSETS AVAILABLE FOR SALE	64
11.	FUND FOR CAPITALIZATION OF AUTHORIZED DEALERSHIPS	64
12.	INVESTMENTS	65
13.	PROPERTY AND EQUIPMENT	66
14.	INTANGIBLE ASSETS	68
15.	TRADE PAYABLES	70
16.	SUPPLIER FINANCING	71
17.	FLOOR PLAN	71
18.	LOANS, BORROWINGS AND DEBENTURES	72
19.	RIGHT-OF-USELEASES	78
20.	RELATED-PARTYTRANSACTIONS	79
21.	PAYABLES FOR THE ACQUISITION OF COMPANIES	84
22.	INCOME TAX AND SOCIAL CONTRIBUTION	85
23.	JUDICIAL DEPOSITS AND PROVISION FOR JUDICIAL AND ADMINISTRATIVE LITIGATION	87
24.	ASSIGNMENT OF RECEIVABLES	90
25.	EQUITY	91
26.	INSURANCE COVERAGE	93

27. NET REVENUE FROM SALE, LEASE, RENDERING OF SERVICES AND SALE OF DECOMMISSIONED ASSETS

USED IN SERVICES RENDERED	93
28.	EXPENSES BY NATURE	96
29.	FINANCE RESULT	97
30.	OPERATING LEASES	97
31.	EARNINGS PER SHARE	98
32.	SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION	98
33.	SUBSEQUENT EVENTS	98

3Q23 | HIGHLIGHTS

Consolidated

Consolidated net revenue of R$1.482 billion in 3Q23 is 7.5% higher than 3Q22. 31.5% increase in 9M23 vs 9M22, totaling R$4.633 billion;

Operating Profit (EBIT) increased 14.2% vs. 3Q22 and reached R$1.601 billion in 9M23, up 39.8% over the same period of the previous year;

EBITDA of R$682.7 million, up 23.2% vs. 3Q22 and up 46.9% in 9M23 vs. 9M22, reaching R$2.007 billion. Consolidated net income of R$115.8 million in 3Q23, an increase of 8.6% vs. 2Q23;

Leverage of 3.28x net debt/EBITDA¹;

Operational growth with profitability gains:

• ROIC of 18.7% in LTM 3Q23 vs. 15.8% in LTM 3Q22.
• ROE of 15.1% in LTM 3Q23 vs. 18.5%² in LTM 3Q22.

VAMO3 is now part of the Ibovespa, the B3 index that includes the most tradeable and representative companies in the Brazilian capital market;

Rental

Net revenue of R$837.7 million in 3Q23, up 61.3% over 3Q22. In 9M23, growth of 83.3% compared to 9M22, reaching R$2.417 billion;

EBIT of R$542.8 million, up 58.8% vs. 3Q22 and up 75.9% in 9M23 vs 9M22 (R$1.498 billion in 9M23);

EBITDA amounted to R$674.0 million, up 61.1% vs. 3Q22. In 9M23, EBITDA amounted to R$1.860 billion, an increase of 76.7% vs. 9M22.

Future contracted revenue (backlog) of R$16.814 billion, 33.6% higher than 3Q22;

Contracted CAPEX of R$1.261 billion in 3Q23. In 9M23, contracted CAPEX amounted to R$4.362 billion;

Deployed CAPEX of R$1.208 billion 2023 compared to the same period

in 3Q23, up 15% vs. 2Q23. In 9M comparison, the increase is 6.0% in of the previous year, totaling R$3.572 billion;

Expansion of the rented fleet to approximately 40,000 assets, representing 88% of the total fleet;

Assets available for rental in September/23 amounted to R$1.620 billion, reinforcing the downward trend;

In Used Vehicles sales, net revenue for the quarter amounted to R$ 142.5 million, an increase of 70.5%, with a consolidated gross margin on asset sales of 32.5%;

1

Dealerships

Net revenue from dealerships amounted to R$ 586.6 million in 3Q23. On a year-to-date basis, it decreased 3.8% compared to 9M22, adding up to (R$2.024 billion in 9M23;

EBITDA Margin of 0.2% in the quarter, in 3Q23, pressured by agricultural dealerships in an atypical volatility for the sector;

Completion of the acquisition of DHL Valtra, as announced on August 8, 2023;

Significant rebound in agribusiness sales volume in September, reflecting our customers' preparations for the 2024 crop, with margins still under pressure due to higher industry inventories;

1. Includes the EBITDA of the last twelve months and the debt of the acquired companies DHL Valtra and Tietê Veículos.
2. Includes Shareholders' Equity without the effects of Follow-on.

2

MESSAGE FROM MANAGEMENT

With the end of the third quarter, we have reaffirmed to the market the resilience of our ecosystem and business model as well as our ability to deliver results.

In rental, we continued our path of growth in the deployment of assets to our clients, with good returns and growth of 15.3% in the quarter (compared to 2Q23). We reached 40,000 rented assets throughout Brazil, representing 88% of the total VAMOS fleet, reinforcing our commitment to execution and focus on the capital invested.

In line with the decision to advance the strategic purchase of trucks, our inventory level of assets available for rental (trucks, bodies, machinery and equipment), which amounted to R$3.5 billion in December 2022, reached R$1.6 billion in September this year (2023) on a downward trend. We expect to get normal levels in approximately 2.5 months (R$1bn - at least 50% of which will be financed by suppliers).

Our backlog, or future contracted revenue, increased by 33.7% in the third quarter compared to the same period last year, in a total of R$16.8 billion in September 2023, an addition of R$4.2 billion in future contracted revenue in the last 12 months, an important growth in new rental contracts, confirming a favorable outlook, even in a year of credit restrictions and a sharp drop in the industry in the sale of trucks and machinery in the Brazilian market.

Consolidated net revenue from the rental segment grew 61.3% in the quarter compared to the same period last year, in a total of almost R$ 838 million, with a 61% increase in EBITDA (R$674 million). In the year-to-date period (9M23), the increase in net rental revenue exceeded 83% growth in relation to 9M22, with a 77% expansion in EBITDA. The gross margin of asset sales amounted to 32.5%, reinforcing the transformation of the value of assets with net revenue growth of 70.5%. The company continues to expand its asset sales capacity.

In the dealership segment, especially in agribusiness, the environment was restrictive at the start of the quarter, particularly in July, reflecting an atypically weak dynamic in the period with a damming of sales volume and a high volume of inventory in the market as a whole, due to the restriction of credit in the market and the availability of financing, as well as high input prices and a drop in soybean and corn prices in the period. Despite this, we can already see an important recovery in September's sales volume, compared to the dampening of sales in recent months, with a volume close to that achieved in September/22 - albeit with lower margins given the high inventories at OEMs and dealership networks, and subject to occasional volatilities inherent to the sector (such as variations in commodity prices, and weather conditions such as El Niño). Thus, we believe that this dynamic of higher sales volume and still compressed margins should continue throughout the fourth quarter of 2023, indicating that a possible recovery in margins will occur throughout 2024.

We ended the quarter (September/23) with R$1.7 billion in cash and R$8.7 billion in net debt, resulting in a LTM leverage ratio of 3.28x net debt/EBITDA, reinforcing our focus on optimizing return on invested capital. Given the trend towards lower inventories at dealerships in 4Q23, coupled with the continued growth in rental revenue, we expect a continued reduction in our leverage.

3

In addition to these important milestones mentioned above, this quarter VAMOS shares were included in the IBOVESPA index for the portfolio in force between September and December 2023. The index brings together the most tradeable and representative companies in the Brazilian capital market and is the main indicator of the performance of shares traded on B3, with the portfolio being reassessed every four months.

As a result, we reached the end of another quarter with very consistent results in the rental and asset sales segment. OEMs and manufacturers of trucks and machinery (capital goods) are facing a challenging year in all their business lines, but VAMOS stands out with growth in the rental and used-vehiclebusinesses: growth in net revenue, asset sales, rental EBITDA margin of 90%, and R$3.6 billion in deployed capex in the year.

The Company has the opportunity to grow consistently, through the efficient management of its capital structure, expanding its rental business in a country that has a high demand for a business model like VAMOS. We have transformed the company over the last few years, and have reached a unique scale in the sector, in a position to grow by at least R$400 to R$500 million in assets deployed per month over the next few years through new rental contracts, bringing about a new transformation and generating great value for shareholders and society.

We would like to express our gratitude to our PEOPLE, family members, customers, investors and suppliers who trust in our leadership and leading role in the sustainable development of the truck, machinery and equipment rental sector in Brazil, expanding and renewing the Brazilian fleet in an agile manner, with a wide reach through our dealerships with used-vehiclestores and distributors.

We're happy with what we've done so far, but much happier with what we can do.

The Management - VAMOS

4

RENTAL

We ended the third quarter of 2023 with a total fleet of 45,161, of which 35,062 trucks and vehicle equipment and 10,099 machines and equipment, representing a fleet mix of 78%/22%, respectively. This total represents fleet growth of 17.1% compared to the asset base at the end of 3Q22 (38,561).

Total Fleet

(#)

+17.1% 45,161

38,56110,099

7,947

30.61435.062

3Q223Q23

	Tucks and Vehicle Equipment		Machines and Equipment

As shown in the chart below, in September our rented fleet amounted to almost 40,000 rented assets, reflecting the growing level of capex deployment and consequently the downward trend in our assets available for rental, reinforcing our commitment to execution and focus on return on invested capital. When we analyze the evolution of the percentage of the fleet rented, as indicated, we see the indicator improving to more normal levels, considering the growing volume deployed throughout 2023, which is also related to the early strategic purchase of Euro V assets.

	40,000				% Rented Fleet vs. Total Fleet								92%
		Rented assets																	Considering Capex to
																				be deployed
	90,8%	88,4%	88,6%																					88,4%
85,1%																				87,0%
																					84,5%
							82,1%	82,4%											81,7%
															79,5%
											77,9%	76,9%	77,2%
											76,5%
# assets (thousand)																45.0	45.1	45.1	45.2	45.3	45.1	45.0	45.2
															40.0	41.6	43.8	44.0
												35.0	36.7	38.6
									32.0	33.3	33.9													39,2	39,9
																						38,3	38,4
							26.1	26.9											35,8	36,0	36,9	37,2
						25.3										34,3
					23.6								32,8	33,5
			21.2	22.6							30,9
19.6	19.1	20.4								28,2	29,4
					26,4	26,2	26,4	26,7
		18,1	18,7	20,4	20,9	21,5	21,5	21,5
16,7	17,3

Jul/21 Aug/21 Sept/21 Oct/21 Nov/21 Dec/21 Jan/22 Feb/22 Mar/22 Apr/22 May/22 Jun/22 Jul/22 Aug/22 Sept/22 Oct/22 Nov/22 Dec/22 Jan/23 Feb/23 Mar/23 Apr/23 May/23 Jun/23 Jul/23 Aug/23 Sept/23

Rented Fleet

Total Fleet

5

In the third quarter of 2023, contracted CAPEX in long-term rental contracts amounted to R$1.261 billion, 13.2% lower than in the same period of 2022. For the year-to-dateperiod, contracted CAPEX amounted to R$4.362 billion, 4.1% lower than the volume contracted in the first nine months of 2022.

Contracted CAPEX

(R$million)

		-4,1%
-13,2%	4.546,0	4.361,6
1.452,0	1.260,6

3Q22

3Q23

9M22

9M23

New rental contracts - 3rd quarter 2023

Indicators (R$ million)	3Q23
Contracted Capex	1,260.6
Monthly Turnover	32.9
Average Billing Period (months)	52.3
Added backlog volume	1,721.6

The average yield was 2.61%, preserving the high profitability of the new contracts, taking into account the mix of contracts with maintenance and the fall in the future yield curve over the period. The IRR Spread of the new contracts signed in recent quarters is approximately 11 p.p. (ratio of average IRR and cost of debt at the end of 3Q23). The strong appreciation of rental assets and the downward trend of the interest rate curve should result in additional profitability.

Future contracted revenue ("backlog") at the end of 3Q23 amounted to R$16.8 billion, up 33.6% from 3Q22, as shown in the graph below, and up 3.7% on 2Q23:

3Q23 x 3Q22	3Q23 x 2Q23
		+3,7%	16.814,2*
+33,6%	16.814,2*	16.207,3*

12.589,7

6

3Q22	3Q23	2Q23	3Q23

*Includes the amount involved in the sale of receivables.

Over the course of 3Q23 we saw a reduction of R$338.8 million in the backlog, mainly due to repossessment of assets that took place during the period, which amounted to around R$189 million in rented assets (considerably less than in 1H23 - R$356 million), and which were executed by the company in an agile manner, preserving a client portfolio with adequate credit risk for VAMOS. Around 24% have already been sold or rented again, and the remaining assets has already been directed to the respective sales channels, given that these are very liquid assets and have shown strong appreciation over the years. In addition, we added more than R$1.7 billion to our backlog through new contracts closed in the quarter, reflecting a 3.7% increase in backlog in 3Q23 compared to 2Q23.

It is important to add that for any repossessment of assets related to the assignment of receivables contract, the company has the prerogative to replace the contracts or pre-pay the related future flows, thus generating no effect on the financial result.

We present below the evolution of net fixed assets leased from December 2022 to September 2023:

Evolution of net rented assets

(R$ milhões)

Reduced repossessments:

Jul/23: R$ 117 MM

Aug and Sept: monthly average of R$40MM

Deployment	End of contracts	Repossessments

The table below shows the gross assets that generate revenue.

Statement of gross assets generating revenue	3Q22	4Q22	1Q23	2Q23	3Q23
Gross Vehicles and Machinery (Income Statement Parent	9.938	12.310	12.710	13.142	13.274
company)
% Non-rented assets ("Inventory")	24,0%	28,1%	23,5%	17,6%	12,2%
% Fixed Assets without Contribution to Revenue in the Quarter*	0,0%	0,8%	7,1%	4,0%	1,9%
% Fixed Assets Gross rental income	75,9%	71,1%	69,4%	78,4%	85,9%

*Includes agricultural assets and repossessed assets

7

As for CAPEX deployed, in 3Q23 we reached a volume of R$1.208 billion, an increase of 15.3% compared to 2Q23. In the year-to-date (9M23), the deployment volume amounted to R$3.572 billion, indicating a consistent transformation in the scale of our rental business.

Deployed CAPEX

(R$ million)

-11,4%		+6,0%
	3.572,1
1.362,8	+15,3%	3.369,0
1.208,0	1.208,0
	1.048,4

3Q22

3Q23

2Q23

3Q23

9M22

9M23

We show below the downward trend of our assets available for rental since December 2022, when we reached our highest volume, given the effect of the early purchase of Euro V trucks, which were deployed throughout 2023, reaching R$1.6 billion in September/23. We expect more normal levels at approximately 2.5 months, or around R$1 billion, with at least 50% financed by suppliers.

Evolution of assets available for rental

(R$ billion)

8