IVECO TRUCKS: TECHNOLOGY AND SERVICES THAT GIVES YOU A LEADING EGDE Iveco’s basic premise is innovation and it is focused on the clients’ needs. Therefore, we constantly invest in technology to develop better and more efficient, advanced trucks, with low maintenance costs, providing at the same time quality services that ensure maximum performance and profitability from our products. We do all this with one single objective: to put our clients at the forefront of their businesses. Always.

3 INTRODUCTION Introduction This Yearbook represents ABLA’s commitment to providing information to a number of economic sectors throughout the Brazilian automotive production chain. Taking a special look at the vehicle rental segment, this publication maps the market, offering data, figures, the names of leading executives, and the outlook - a complete scenario. The pages ahead lay out the main strengths and opportunities in the vehicle rental industry, a segment in continuous growth and of vital importance to business and leisure tourism. The sector is the largest customer for the domestic automotive industry, with a new fleet - renewed every fifteen months, on average - of over 400,000 vehicles. Just to show how important this business is, it accounts for federal tax revenue of approximately R$ 1.7 billion, and its production chain creates more than 264,000 direct and indirect jobs. 2011 ABLA YEARBOOK When it comes to car rental, you have in your hands a very rich source of information.

4 EDITORIAL The best of the last 20 years Paulo Gaba Jr. Chairman of the Board of Directors - ABLA The world has changed, and so have the financial centers. Brazil has been through several economic plans and today’s world is completely different from two decades ago, and now the BRIC countries are the focus of growth. Inflation is under control in Brazil, the currency (the real) is strong, and we are grabbing global attention. When I joined ABLA almost 20 years ago the industry’s main challenge was pricing. I used to listen to relentless criticism of other companies practicing predatory competition through pricing. The rate was based on the competition’s price, with no other criteria whatsoever being considered. Inflation masked results and the focus was on price. In 2010, the vehicle rental industry had its best year, with the recovery of prices after decades of reduced rates. Only those who have a deep understanding of their business are able to price correctly, aware of their costs, commitments, risks and margins. I am very glad this has changed. And we can focus on managing our businesses, without focusing on the competition. This is certainly a result of the investment in training made by the sector, which is mature enough to grow and, especially, to PROFIT. This continued investment in company training has created a more mature and respected industry, which has contributed significantly to the automotive sector and the economy, resulting not only in record sales but also in job creation and tax revenues. Yes, 2010 was the best of the last 20 years for our industry, and investment in human capital has been vital in achieving this. I want to express my sincere gratitude to ABLA, which has ceaselessly insisted on courses and training, providing grants and information for its members, sowing the seeds for decades so that now we can reap the harvest. After 18 years as a member, I feel fit to drive the organization. Any relation to car rental is not just a coincidence. 2011 ABLA YEARBOOK

5 FIGURES Economic figures Indicators JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Selic rate 0.66% 0.59% 0.76% 0.67% 0.75% 0.79% 0.86% 0.89% 0.85% 0.81% 0.81% 0.93% Savings 0.5536 0.5000 0.5000 0.5796 0.5000 0.5513 0.5592 0.6157 0.5914 0.5706 0.5474 0.5338 Dollar exchange rate in Real (R$) 1.778 1.842 1.786 1.757 1.813 1.807 1.770 1.760 1.719 1.684 1.713 1.693 * overnight inter-bank loans interest rate 2011 ABLA YEARBOOK

ABLA Yearbook 2011 | General Coordination J.C. Bourg, Nilvando Filgueira | Advertising Nilvando Filgueira | Journalist in charge Luciana Lewis (DRT 4655-19-95/PR) | Editing and features Fernando de Albuquerque, Gabriela Pires and Thiago Neves Graphic design and desktop publishing Ponto & Letra (www.ponto-e-letra.com.br) | Illustrative images dreamstime, fotolia English version Andrew C. Fox (andrew.fox@mandic.com.br) | Pre-production, printing and finishes Gráfica Revelação The ABLA Yearbook is not responsible for the opinions expressed in the articles herein. The articles can be reproduced, as long as the source is mentioned. Printed in Brazil, September, 2011 Brazilian Car Rental Association Rua Estela, 515 Bloco A - 5º Andar 04011-904 - São Paulo, SP, Brazil Tel.: 55 11 5087 4100 SAS Quadra 01, conjunto J, 5º andar, sala 511 Edifício CNT 70070-010 - Brasília, DF, Brazil Phone: (061) 3225-6728 and Tel. 55 61 3226 2072 Fax 55 61 3226 0048 www.abla.com.br MANAGEMENT BOARD MANAGEMENT BOARD (Substitutes) Paulo Gaba Jr. Carlos Teixeira Paulo Nemer João Carlos de Abreu Silveira Alberto de Camargo Vidigal Eládio Paniágua José Adriano Donzelli Luiz Carlos Lang Saulo Fróes Cássio Lemmertz Nildo Pedrosa Paulo Miguel Jr. Carlos Rigolino Júnior Alberto Nemer Neto Alberto Faria Reynaldo Tedesco Roberto Portugal Marcelo Fernandes Valmor E. Weiss Carlos Faustino Luiz Mendonça Nelma Cavalcanti Marcello Simonsen Erozalto Nascimento (in memorian) SUPERVISORY BOARD SUPERVISORY BOARD (Substitutes) Antonio Pimentel Joades Alves de Souza Eduardo Corrêa Félix Péter Paulo Bonilha Jr. José Zuquim Militerno Flavio Gerdulo João Regueira de Souza Filho Raimundo Teixeira Marco Antonio Lemos Jacqueline Moraes de Mello Emerson Ciotto CEO João Claudio Bourg 2011 ABLA YEARBOOK

Statistics Sales and market share grow 8 Confident businesspeople and a young fleet 10 A good business for Brazil 12 Who is renting? 16 Anfavea (The Brazilian Automotive Industry Association) Thriving domestic market 18 CESVI Taking care of the kids 20 Road safety tips 24 Insurance The best protection for your vehicle 26 Learn more The nearly-new and second-hand car market in Brazil 28 Banco VW is alert to the vehicle rental market 30 Management board Booming market 32 National board 34 Supervisory board 36 Regional boards North 37 Northeast 38 Center-West 40 Southeast 41 South 42 Tourism The reinvention of Brazilian tourism 44 Perspective The world cup leverages the vehicle rental sector 46 CNT (The National Transport Confederation) Social commitment 48 Serasa A look at the opportunities in vehicle rental in Brazil 49 Training Training for the World Cup 50 Vehicle renting Integrated management is an option for modern vehicle rental companies 52 Automakers Volkswagen 54 Fiat 55 Chevrolet 56 Ford 57 Renault 57 Toyota 58 Honda 58 Kia 59 Hyundai 59 Citroën 60 Nissan 60 Mitsubishi 61 Mahindra 61 MAN 62 Ford trucks 62 Trucks, buses and motorcycles gaining a hold in the rental sector 63 CESVI tips 64 Partners 68 2011 ABLA YEARBOOK 7 CONTENTS Contents

8 STATISTICS Sales and market share grow The figures confirm the industry’s potential for growth. In 2010, sales revenue for this segment was R$ 5.11 billion, a 17% increase on the previous year. This good performance, a result of the efforts made by businesspeople and the hard work by ABLA, has a direct impact on the growth in the automotive industry. In 2010 alone, the sector accounted for 9.4% of automobile sales, almost 0.5% up on 2009. This percentage means car rental companies remain the leading customer for domestic automakers. The industry’s sales were up by 17% on the previous year and have directly impacted the automotive industry 2011 ABLA YEARBOOK

9 STATISTICS Sector sales In billion R$ Share of the automotive industry’s sales In percentages Composition of the fleet by automaker - 2010 In percentages 2003 2004 2005 2006 2007 2008 2009 2010 2.35 2.68 2.91 3.17 3.49 3.99 4.37 5.11 2003 2004 2005 2006 2007 2008 2009 2010 9.20 11.30 11.05 11.09 8.22 11.40 9.02 9.40 2003 2004 2005 2006 2007 2008 2009 2010 Volkswagen 34.1 33.3 32.6 30.7 31.1 30.9 29.5 29.5 Fiat 30.2 26.4 29.3 30.7 28.7 29.5 27.3 27.9 General Motors 27.1 30.2 30.1 30.1 32.8 29.6 23.7 24.5 Ford - - - - - - 3.9 2.5 Renault - - - - - 1.8 3.5 2.5 Toyota - - 2.8 2.9 2.7 1.2 1.0 < 1 Others 8.6 10.1 5.2 5.6 4.7 7.0 10.9 13.0 Source: Manufacturer 2011 ABLA YEARBOOK The share in sales was 9.4% in 2010 In 2010, for the third time in row, the preferred automaker was VW, followed by FIAT and GM Outros 29,53 27,91 24,54 13,05 2,49 2,48

Confident businesspeople and a young fleet 10 STATISTICS Getting younger and rapidly expanding, the fleet owned by vehicle rental companies in Brazil is shadowing the growth in the number of rental companies themselves, which has risen from 1,995 in 2009 to 2,008 in 2010. This steady growth in recent years has proven that positive results have encouraged new businesspeople in their pursuit of good returns on a stable market. To meet consumer demand for newer cars, the new companies are investing in the periodic renewal of the fleet, whose average age reached 15 months in 2010, down from 16.5 months in 2009. In 2010 market alternations produced an additional 53 vehicle rental companies 2011 ABLA YEARBOOK

11 STATISTICS Number of vehicle rental companies Sector’s fleet In number of vehicles Average age of the fleet In months Fleet composition by model In percentages 2003 2004 2005 2006 2007 2008 2009 2010 2,340 1,985 1,964 1,952 1,905 1,893 1,955 2,008 2003 2004 2005 2006 2007 2008 2009 2010 181,900 203,650 223,811 250,204 283,562 318,865 363,456 414,340 2003 2004 2005 2006 2007 2008 2009 2010 15.0 15.0 15.0 14.0 15.0 16.0 16.5 15.0 Compact Midsize Fullsize Utility vehicles and vans 2010 60.0 17.0 7.0 16.0 2009 66.0 14.0 6.0 14.0 2008 71.0 13.0 6.0 10.0 2007 72.0 12.0 6.0 10.0 2006 70.8 12.9 5.9 10.4 2005 71.1 12.6 6.1 10.2 2004 70.4 12.9 5.9 10.8 2003 69.7 12.5 7.2 10.6 2011 ABLA YEARBOOK In 2010 the total fleet numbered 414,340 The average age of the fleet has been reduced as the result of investments by businesses Compact cars are the most popular in vehicle rental

A good business for Brazil 12 STATISTICS As the number of vehicle rental companies grows, so does the segment’s contribution to federal tax revenues. In 2010, for example, tax revenues totaled R$1.688 billion, up by 17% year-on-year. In addition to being an excellent business for Brazil, the segment continues to create jobs. Last year alone saw almost 25,000 more jobs added to the total in 2009. For the future, new investments throughout the whole vehicle rental sector should maintain steady growth. Fleet management is still a big part of the business. However, the World Cup and Olympics, scheduled to take place in the next five years, should change this scenario, resulting on an increased share for business and leisure tourism. The segment continues to create jobs. Last year alone saw 10% growth. The World Cup and Olympics in Brazil should boost the share held by business and leisure tourism in the vehicle rental industry. 2011 ABLA YEARBOOK

Business profile Percentages Tax revenue In billion R$ Creation of direct and indirect jobs 2003 2004 2005 2006 2007 2008 2009 2010 165,500 168,200 178,240 185,560 194,838 209,061 240,644 264,708 2009 2005 2006 2008 2004 2007 2003 52 56 24 20 Outsourcing Tourism (business) Tourism (leisure) 22 26 18 18 18 16 17 17 27 27 29 28 27 24 55 55 Fleet management Tourism (leisure) Tourism (business) 2003 0.5 1.0 1.5 2.0 2004 2005 2006 2007 2008 2009 2010 0.697 0.790 0.867 0.941 1.056 1.273 1.443 1.688 14 STATISTICS 2011 ABLA YEARBOOK Tax revenue in 2010 was up by 17% year-on-year In 2010, nearly 25,000 more jobs were created in the industry, compared with 2009, resulting in a total of 264,708 jobs 54 55 57 58

Who is renting ? 16 STATISTICS In the last seven years, the number of users in the vehicle rental segment has almost doubled from 8.7 million to 17.7 million. Men aged between 25 and 45 still account for the largest share. The increased demand shadows the increase in the number of vehicle rental companies. Industry and services are the leading customers, comprising more than 70% of the market, mainly due to the need fleet management. 2011 ABLA YEARBOOK Vehicle rental locations in 2010 North Acre 8 Amapá 9 Amazonas 21 Pará 53 Rondônia 12 Roraima 14 Tocantins 16 Total 133 Northeast Alagoas 32 Bahia 180 Ceará 89 Maranhão 32 Paraíba 35 Pernambuco 83 Piauí 20 Rio Grande do Norte 46 Sergipe 34 Total 551 Center-West Distrito Federal 52 Goiás 48 Mato Grosso do Sul 26 Mato Grosso 17 Total 143 Southeast Espirito Santo 91 Minas Gerais 219 Rio de Janeiro 119 Greater São Paulo 225 São Paulo State (not including Greater São Paulo) 179 Total 833 South Paraná 118 Rio Grande do Sul 124 Santa Catarina 106 Total 348 Overall total 2,008 Number of users In millions 2010 17.7 2009 16.8 2008 16.2 2007 15.1 2006 14.1 2005 12.2 2004 10.1 2003 8.7 Marital status Sex Consumer profile in 2010 78% men 22% women 67% married 33% single From 2003 to 2010, the number of users of the rental sector nearly doubled

17 STATISTICS Average age of users in 2010 Users’ area of activity in 2010 2011 ABLA YEARBOOK 4% 85% 11% are aged between 21 and 24 years old are over 45 years old are aged between 25 and 45 years old Level of education in 2010 90% 10% have high school diplomas are graduates 10% 42% 30% 10% 8% Services Industry Commerce Others Self-employed Most users work in the service or industry sectors

18 ANFAVEA Thriving domestic market By Cledorvino Belini President of Anfavea In 2010 Brazil’s domestic vehicle market grew by R$ 3.52 million, up 11.9% on 2009, with 3.14 million new vehicles licensed. Market growth in 2010, particularly for light vehicles - which was up by 10.6% on 2009 - is related to the growth in income, availability of credit and the entrance of new consumers into the market. These factors, coupled with Brazil’s strong macroeconomic conditions, have increased consumer confidence. With particular regard to the distribution of the domestic market, among national and imported cars, the latter’s share of the total market has increased: 13.3% in 2008, 15.6% in 2009, and 18.8% in 2010. This is because the Brazilian market has been growing sustainably since 2004, so grabbing the attention of automakers worldwide, especially in the two regions with which we have preferable tariff agreements, or zero rates (Mercosur and Mexico). Employment has also increased in recent years, given the expansion in production. The lowest employment point, as a result of the international downturn, came in June 2009. That month, 119,500 people were employed in the vehicle and agricultural machinery industries, and businesses which are members of Anfavea. After that, up to March this year, we have had continued growth – 21 months of gradual, steady growth. So in March this year, 139,500 people were employed in the sector, an increase of 20,000 jobs in the period. Anfavea estimates the domestic market in 2011 at around 3.69 million vehicles, up by almost 5% on the 3.52 million vehicles licensed in 2010 - an increase which is in step with GDP growth. 2011 ABLA YEARBOOK Automotive production year-on-year In million of units 1.79 1.82 2.20 2.52 2.61 2.98 3.18 3.22 3.63 2003 2002 2004 2005 2006 2007 2008 2009 2010 Vehicle production is up by 14.3% year-on-year

Vehicles – (new domestic and imported vehicle licensing) In millions Year Imported National Total 2005 0.088 1.626 1.714 2006 0.142 1.785 1.927 2007 0.267 2.194 2.462 2008 0.375 2.445 2.820 2009 0.476 2.664 3.141 2010 0.660 2.855 3.515 Domestic sales of 1-liter automobiles Domestic and imported cars in 2010 Year 1-liter automobiles 1-liter in % 2002 820,135 66.7 2003 707,430 63.2 2004 742,005 57.3 2005 757,235 56.2 2006 874,507 56.2 2007 1,066,516 54.0 2008 1,110,059 50.6 2009 1,178,752 37.8 2010 1,300,000 52.7 Sales – flex model sales Market share 2003 2007 2004 2008 2005 2009 2006 2010 4% 22% 50% 78% 86,5% 84% 87% 86% 48,000 units sold 2.003 million units sold 328,000 units sold 3.329 million units sold 812,000 units sold 2.540 million units sold 1.430 million units sold 2.870 million units sold 2003 2002 2004 2005 2006 2007 2008 2009 2010 1.3 1.3 1.5 1.6 1.7 2.2 2.4 2.8 2.7 Domestic car sales In millions 19 ANFAVEA 2011 ABLA YEARBOOK

20 CESVI 2011 ABLA YEARBOOK Many parents are not aware of the risks children face on even a short drive. According to statistics from the Ministry of Health, six children a day under the age of fourteen die in traffic accidents in Brazil. So adults must chose child safety seats that are appropriate to the children’s age, weight and height. In 2008, the National Traffic Council (CONTRAN) established the mandatory use of child safety seats for children up to seven and a half years old. Failure to comply with this law is a serious traffic offence. Enforcement of this law, which had been set for June 2010, was postponed by the National Traffic Department (DENATRAN) for September 1, 2010, because there were not enough child safety seats in stores to meet demand. So children aged up to ten years old in cars must be in the back seat, and those under seven and a half years old (or under 1 meter 45 cm in height) must be in an adequate device that guarantees their protection in the event of an accident. In vehicles with only front seats, such as pickups, children up to ten years old may travel, wearing a seatbelt (if they are over 1 meter 45 cm tall) or sitting in an appropriate device. However, if such vehicles have airbags, the child safety seat must be installed in line with the vehicle manufacturer’s recommendations, bearing in mind that the device must not have a tray or similar accessory, and it must not be a model that has to be mounted facing backwards (such an infant’s car seat). The seat must be pushed rights back, unless recommended differently by the manufacturer. Parents should take extra care with children in vehicles. Cesvi offers tips on the use of child safety seats Taking care of the kids

22 CESVI 2011 ABLA YEARBOOK • Group 0: for children up to 10 kg, approximate height 0.72 m, up to 9 months old. • Group 0+: for children up to 13 kg, approximate height 0.80 m, up to 12 months old. • Group I: for children from 9 kg to 18 kg, approximate height 1.00 m, up to 32 months old. • Group II: for children from 15 kg to 25 kg, approximate height 1.15 m, up to 60 months old. • Group III: for children from 22 kg to 36 kg, approximate height 1.30 m, up to 90 months old. Inmetro divides child seats into groups, according to age, weight and height. The Center for Road Safety and Testing (CESVI Brasil) recommends the use of child safety car seats that carry the mandatory certification seal issued by the National Institute of Metrology, Standardization and Industrial Quality (INMETRO). It is also recommends that attention be paid to the correct installation procedure for the device, in accordance with the guidelines indicated in the product’s user manual. Security ideal for your child Infant car seat Child seat Rear-facing, with the baby facing the rear window. Must be at 45º (shell shaped). Seatbelts must be used, and the straps must be no more than a fingerwidth loose. Forward-facing, and not inclined. The seatbelt must go over the child’s shoulder and child’s neck must not be out of the chair. The child seat straps must not be more than a finger-width loose. 43.0 cm 49.0 cm From newborn to 9 or 13 kg, depending on the manufacturer’s specification, or one year old. From 9 to 18 kg; approximate age: 1 to 4 years old. Three-point seatbelt This seatbelt type is more resistant, secure and comfortable. NOTE: Do not twist the straps. 62.5 cm 55.0 cm Weight: 2.17 kg Weight: 6.61 kg 53.5 cm 65.0 cm

Babies under 1 year old must be transported in an infant car seat. 23 CESVI 2011 ABLA YEARBOOK • Check that the device (infant car seat, baby car seat, booster seat) carries the seal of the National Institute of Metrology, Standardization and Industrial Quality [INMETRO]. • Check the product can be adjusted to the type of vehicle it will be installed in. • Have the child with you at the time of purchase in order to check the product is appropriate to their weight, height and age, and that they are properly secured. Children between 4 and 7 years old must use a booster seat. Children between 1 and 4 years old must be put in seats specific to their body size. Children between 7 and 10 years old must travel in the back seat, and wear a seatbelt. Be aware of the following steps when purchasing a child safety seat: The regulations establish the following: Child car seats must comply with the new laws

Road safety tips Holidays and weekends see a tragic number of road traffic fatalities. The risk increases with the large number of vehicles traveling in these periods Drivers should carry out periodic vehicle checks, especially before travelling, on the condition of the brakes, suspension, wheel alignment, tires, spare tire, fuel injection, battery, cooling system liquid, headlights and taillights. In a collision, high speed increases the seriousness of the accident. Speed limits must be respected. At high speed drivers need a greater breaking distance from the car in front. In rain, this distance (and care taken) must be doubled. Adults must be aware of safety devices appropriate to children’s age, weight and height, commonly known as child safety seats. In 2008, the National Traffic Council (CONTRAN) established the mandatory use of such devices for children up to seven and a half years old travelling in automobiles. Failure to follow this rule is a very serious traffic offense. Seatbelts are essential to the safety of a vehicle’s occupants, as they reduce the risk of fatalities in traffic accidents. As required by the traffic rules, they must be used by all vehicle occupants, including rear seat passengers. According to a survey conducted by the US National Highway Transportation Safety Administration (NHTSA), drivers wearing seatbelts have a fatality risk rate reduced by 45% as compared with drivers who do not wear them. CESVI BRASIL estimates that a 10% increase in the seatbelt use would save 1,600 lives a year in Brazil. Maintaining the minimum safe distance from the vehicle in front is essential to the prevention of road accidents. The three-second rule helps drivers to calculate this distance.When the vehicle ahead passes a marker, such as a post or tree, drivers should begin to count to three. If their vehicle passes the same marker before ‘3,’ it means that the driver has exceeded the minimum safe distance. This safe distance is longer on slopes and wet roads. Some highways have road markings indicating the safe distance. Besides being illegal, driving under the influence of alcohol endangers the lives of everyone traveling on the road. Tired drivers are also a danger. If drivers are taking medication, they must check any restrictions on driving in advance. Never overtake on the right because the risk of serious accident is higher. The use of a turn signal before overtaking is extremely important. For example, if a truck driver does not realize that a vehicle is overtaking him, the truck could push the vehicle off the road. Objects and luggage must be transported in the trunk. In the event of a collision, loose objects can shift inside the vehicle and their weight be multiplied by 50 times or more, depending on the speed. Care should be taken when the vehicle is carrying a greater load (passengers and luggage) than usual. Under these conditions, a greater breaking and overtaking distance is required (less acceleration), and turns need to be made at a lower speed. The survival rate for a person being run over at a speed in excess of 80 km per hour is practically zero. It is important to stay off the hard shoulder and reduce speed in areas where pedestrians cross. Preventive maintenance 1 High speed 2 Alcohol and fatigue 6 Overtaking 7 Luggage 8 Pedestrians 9 Children in the car 3 Seatbelts 4 Safe distance 5 24 CESVI 2011 ABLA YEARBOOK

26 INSURANCE 2011 ABLA YEARBOOK Everybody and every company is exposed to risk, which may or may not materialize. So, considering the variables involved in regard to risk, we will address every possibility to which a vehicle rental fleet is subject to, based on the relevance and pertinence of the topic to the rental market. As a risk is a random event, its future materialization can result in financial losses that are difficult to measure in terms of extent and magnitude. It must be properly handled through effective and sensible management which can minimize the causes and prevent losses. There are several ways to deal with risk, including: prevention, retention (self-insurance), transference, and minimization. Considering that it is unlikely to prevent a risk simply through the owner’s desire to do so, in the case in point, and aggravated by features of the vehicle rental business, where vehicles are provided to drivers The best protection for your vehicle • Periodic vehicle maintenance, complying with the manufacturer’s guidelines and specifications. • Thorough and careful checking by the company, especially for leisure and business rentals. • Contracts include a clause that set out the rights and obligations of the parties regarding events that may result in losses, damages and liabilities. • In fleet management, encourage responsible driving courses to achieve the best standards in driving, respect for people, and in vehicle care. A vehicle rental company should adopt a preventive attitude, so the vehicle is returned with minimal depreciation, allowing a good deal when sold. The key measures are:

27 INSURANCE 2011 ABLA YEARBOOK • RISK RETENTION (SELF-INSURANCE): In this case, the vehicle rental company may choose to assume occasional losses from the use of the vehicle, regarding property, personal and moral damages, caused to third parties, and assistance to the user, in case of accidents, electrical and mechanical damage. In any case, for the perfect retention or self-insurance management, the decision must be followed up with an accident and loss report, and the building up of a fund to deal with events that may result in immediate replacement and an indemnity payment to third parties. • RISK TRANSFERENCE: by choosing to transfer risks, by means of insurance that covers some or all of the risks to which a vehicle is exposed, it is extremely important to have the assistance of an insurance broker. This broker should know the vehicle rental and fleet management business, so that it can provide the best insurance alternative, be it in preparing policies, coverage, or the amount to be insured. It will also help in identifying the companies which can best serve the segment. • RISK REDUCTION: Some measures minimize the occurrence of accidents, and thus reduce suffering and costs for the parties concerned. This item deserves special attention, regardless of whether the vehicle rental company retains or transfers the risk, as risk reduction should be a constant in people’s and businesses’ lives. There are alternatives that company fleet managers may opt for in handling risk: whose profile and care are unknown, management should consider every possibility open to them. It should also be considered that the vehicle, from purchase to sale, represents permanent exposure to the various risks that are inherent to it, and that necessary protection has an important weight on the vehicle rental company costs. So the decision must take into consideration every alternative, and it is important to note that even if it chooses to take out insurance, the vehicle rental company should not discard measures to reduce risks, considering that some events are not usually covered. Vehicle rental companies must be aware of the potential losses posed to each company’s fleet. Solutions should focus on deployment of innovative management techniques By Ildebrando T. S. Gozzo, Technology Director at ANAUTO/SP

28 LEARN MORE The nearly-new and second-hand car market in Brazil By Valdner Papa, consultant in the automotive segment 2009 2010 New Second-hand New Second-hand Automobiles 2,479,457 6,013,629 2,651,752 7,201,617 Light commercials 530,025 991,231 677,418 1,227,692 Total 3,009,482 7,004,860 6,329,170 8,429,309 2011 ABLA YEARBOOK The nearly-new and second-hand car market in Brazil has continued its momentum. The replacement timeframe indicates that the second-hand car market started growing in 2010 and it will extend up to 2015, with rates of growth similar to those in the new car market in 2005 and 2010. It is important to remember that the new car market was boosted by generous finance terms, reduced taxes, longer payment periods, and lower down-payments, all in an environment of income and employment growth. That scenario has allowed the migration of many second- hand car buyers to new cars, which posed a lot of problems for the second-hand market between 2006 and 2010. As a result, while the new car market was growing rapidly, the second-hand car market was slowing down. With the end of tax breaks and prices differences returning to their traditional levels, what we see now is a reverse shift. Now, the challenge is not related to the volume and availability of products to be sold, but rather the existence of financial tools that make it easier to sell second-hand cars. The nearlynew and second-hand car segment relies fully on financing, with special features such as long payment terms and low downpayments, as its buyer look at the amount to be paid monthly, which has to fit their family budget. Until 2010, adequate financing was available. However, the prudential measures taken at the end of that year sought to reduce the volume of credit for long payment terms and low down-payments. In practice, this is the major limiting factor on further development of the second-hand car market, mainly because these measures are directly linked to the process to control the inflation which Brazil is currently experiencing. But there is one key fact: the commercial margins used for second-hand cars have consistently remained between 10% and 11%. In this context, what can we expect from the nearly-new and second-hand car market? A significant sales volume (see table) and an even greater incentive to the existing volume potential, if the availability of finance gets back to normal. Margins will remain at current levels, because prices have remained at 2008 levels, when they fell by a 32% in real terms. In fact, real prices have never recovered, so ensuring a price level which enables a comfortable margin. The secret, as usual, will be in inventory turnover, as it is the determining factor, together with volume and the margin for the final real result. Turnover, in turn, is directly connected to having the correct cars in stock, that is, the vehicles that clients want, which the market ranks as highly liquid.

30 LEARN MORE Clients from the vehicle rental sector are in tune with the latest market developments and are demanding an ever-newer fleet. In 2010, the average age of vehicles was 15 months, 90 days younger than in 2009. In order to constantly renew the fleet, the vehicle rental companies expect credit lines from banks which are specific to the industry. Banco VW knows how important this segment is and offers benefits for vehicle rental companies, such as greater flexibility in credit approval and very competitive rates. With an active portfolio of more than 300,000 clients, Banco VW has been in business for more than five decades, and is recognized as one of the most credible institutions on Brazil’s financial market. The vehicle rental industry accounts for 70% of its corporate client portfolio. Improving and expanding services for this segment are among the bank’s goals. Currently, in addition to finance and a number of payment options, the institution offers in Direct Credit to Consumers (CDC), the bank offers vehicle rental companies property loss insurance and optional civil liability insurance. For greater convenience, the institution has a nationwide structure, which serves customers in the car dealerships themselves and provides specific consultants for fleet segment, who visit clients. Banco VW is alert to the vehicle rental market 2011 ABLA YEARBOOK Vehicle rental companies account for 70% of the corporate client portfolio Banco VW’s competitive advantages are a distinguishing feature on the automotive market. Today, the bank has over 30,000 active clients

Curitiba - PR - Brazil PH.: +55 41 3074-9900 E-mail: vendas@euroit.com.br Contact: Julian Gritsch Head Office: twitter.com/euroit linkedin.com/company/euroit-tecnologia Follow us: INTERACTIVITY Your business 100% under control More than 400 clients in Brazil The most complete ERP for Car Rental companies Make more money with our solution More than 500 connected travel agencies The first exclusive GDS for Car Rental Industry RDCar Gerador de Reservas OnLine Learn all about the business of Car Rental. News, interviews, exclusives and more. www.blogdaslocadoras.com.br Blog das Locadoras de Veículos Get answers from experts Online Forum of Discussion. www.blogdaslocadoras.com.br/forum vendas@euroit.com.br contato@rdcar.com.br contato@rhlocadoras.com.br Totally Free Companies and candidates can share your needs The first Job Opportunities site for Car Rental Industry Smart Solutions for Car Rental Industry. www.euroit.com.br www.rdcar.com.br www.rhlocadoras.com.br

32 MANAGEMENT BOARD 2011 ABLA YEARBOOK Booming market By João Claudio Bourg CEO, ABLA The vehicle rental industry’s results get better year after year, and 2010 was no exception at all. In fact, it went beyond all expectations. Growth in the business can be said to have been the best since we began publishing the ABLA Yearbook. The vehicle rental industry rode the coattails of Brazil’s continued economic growth in 2010. Consequently, we have consolidated the growth of the market seen over the last decade. Among the most significant figures is the 17% increase in sales on 2009, and the share of automakers’ sales the sector accounts, standing at 9.4%, meaning that vehicle rental companies remained the leading corporate client in this important industry. The customer base continues to grow and the potential for the vehicle rental market is increasingly evident. From 2003 to 2010, the number of users increased from 8.7 million to 17.7 million, with the industry and service sectors representing the leading profile on the market. To achieve this exceptional level of performance businesspeople in our industry have by no means passively stood by. There has been a great commitment to improving business management, in order to fully satisfy user demands within an increasingly competitive scenario. A recovery in the average price charged by vehicle rental companies has also contributed to the solid performance achieved by the sector. By combating predatory competition from illegal vehicle rental operations, and fostering greater professionalism among the companies involved in car rental, ABLA has contributed to achieving an average fee for the industry of R$ 85. Other indicators of the great progress to be made in the next few years are related to the World Cup and the Olympics, both to be held in Brazil, which will favor tourism and investment in infrastructure to welcome international visitors. According to a recent announcement by the Ministry of Tourism, the plan is to increase the number of tourists visiting the country by 30% by 2016 (today, Brazil is visited by about five million international tourists a year). Irrespective of such specific events, vehicle rental companies are working towards sustainable growth throughout the current decade. This means, among other things, constantly renewing and expanding the fleet, guaranteeing more investment and jobs. In an optimistic economic environment, driven by increasing purchasing power among Brazilians and heavy investment in infrastructure, among other factors, the future is even brighter for Brazil and the vehicle rental segment. With serious application and hard work, these good results will certainly continue to be achieved.

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34 NATIONAL BOARD 2011 ABLA YEARBOOK National board Paulo Gaba Jr. President Paulo Roberto do Val Nemer Vice-President Alberto de Camargo Vidigal Full Member Carlos César Rigolino Junior Full Member Alberto Faria da Silva Full Member José Adriano Donzelli Full Member Luiz Lopes Mendonça Full Member Marcello Wallace Simonsen Full Member Roberto Bacelar Portugal Filho Full Member Nildo Pedrosa Full Member Saulo Tomaz Fróes Full Member Valmor Emilio Weiss Full Member João Claudio Bourg CEO The figures for 2010 are impressive and the estimates for 2011 are more than satisfactory. Last year, for example, the vehicle rental sector grew by 17% on 2009, and this had a direct impact on the industry and on tourism, and means that vehicle rental companies have been once again been looked on favorably across Brazil. The good results, which mean much more than just purchase, sale and accounting data, are implicitly linked to the professionalism of the staff in charge at ABLA. The expertise of the businesspeople on ABLA’s Management Board shows the commitment and serious application apparent in an institution which lives on the investment made by those who believe, day after day, in the vehicle rental market. From north to south, the directors work actively and in a coordinated manner to benefit the sector and its members and to provide a range of records and services that guide the industry’s sustainability and growth.

Alberto Nemer Neto Substitute Carlos Roberto Pinto Faustino Substitute Carlos Benedito Adão Teixeira Substitute Cássio Lemmertz Substitute Eládio Paniagua Jr. Substitute Luiz Carlos Lang Substitute João Carlos de Abreu Silveira Substitute Marcelo Ribeiro Fernandes Substitute Nelma Cavalcanti Substitute Reinaldo Tedesco Petroni Substitute Paulo Miguel Jr. Substitute 35 NATIONAL BOARD 2011 ABLA YEARBOOK

36 SUPERVISORY BOARD 2011 ABLA YEARBOOK Supervisory board Antonio Pimentel Full Member Eduardo Corrêa da Silva Full Member Joades Alves de Souza Substitute Félix Peter Substitute Flavio Gerdulo Full Member Jacqueline Moraes de Melo Full Member João Regueira de Souza Filho Substitute Emerson Ciotto Substitute Paulo Hermas Bonilha Junior Full Member Raimundo Nonato de Castro Teixeira Full Member José Zuquim Militerno Substitute Marco Antonio de Almeida Lemos Substitute

North Victor Simões da Silva Amazonas José Emílio Houat Pará/Amapá Fábio Bertozzi Tocantins Célio Fonseca Roraima Antonio da Silva Rondônia/Acre 37 REGIONAL BOARDS 2011 ABLA YEARBOOK 2004 2005 2006 2007 2008 2009 2010 Acre 89 97 98 110 131 200 200 Amapá 656 632 731 819 950 420 600 Amazonas 2,281 1,990 1,996 2,236 2,594 1,820 2,075 Pará 4,379 4,732 5,387 6,033 7,328 8,000 8,400 Rondônia 291 305 312 384 457 600 1,020 Roraima 256 296 309 352 426 503 502 Tocantins 249 258 351 400 489 567 950 Total 8,021 8,310 9,184 10,334 12,375 12,110 13,747 2004 2005 2006 2007 2008 2009 2010 Acre 5 5 5 5 5 7 8 Amapá 7 6 6 6 6 7 9 Amazonas 17 16 17 18 18 21 21 Pará 60 68 63 60 60 51 53 Rondônia 9 8 11 8 8 11 12 Roraima 8 10 10 8 8 12 14 Tocantins 11 12 12 9 9 12 16 Total 117 125 124 114 114 121 133 Number of vehicle rental companies Automobile fleet In 2010, the region’s fleet totaled 13,747 vehicles In 2010, there were 133 vehicle rental companies in the region

38 REGIONAL BOARDS 2011 ABLA YEARBOOK Northeast Lusirlei Albertini Alagoas Simone Pino Bahia Marconi José de M. Dutra Bahia Aleksander Rodrigues Rangel Ceará/Piauí Antonio Cesar de Araújo Freitas Maranhão Olavo Bilac Cruz Neto Paraíba Valdir Laurindo (Substitute) Maranhão Antonio Pimentel Pernambuco Alberto Jorge Alves de Queiroz Pernambuco Otávio Meira Lins Neto Sergipe João Bosco da Silva Rio Grande do Norte

39 REGIONAL BOARDS 2011 ABLA YEARBOOK 2004 2005 2006 2007 2008 2009 2010 Alagoas 1,563 1,231 1,246 1,383 1,626 1,980 2,130 Bahia 9,321 9,500 9,623 12,244 12,450 13,650 14,128 Ceará 3,498 3,510 4,233 4,699 5,598 9,997 10,132 Maranhão 1,284 1,490 2,158 2,395 2,780 3,100 3,534 Paraíba 993 1,011 991 1,090 1,274 1,490 1,590 Pernambuco 5,839 5,923 6,010 6,791 7,879 9,060 10,119 Piauí 523 597 1,010 1,111 1,308 1,600 1,800 Rio Grande do Norte 3,721 3,935 4,911 5,599 6,551 9,993 10,830 Sergipe 1,363 2,111 3,256 3,810 4,381 3,723 3,900 Total 28,105 29,308 33,438 39,122 43,847 54,593 58,163 Automobile fleet Number of vehicle rental companies 2004 2005 2006 2007 2008 2009 2010 Alagoas 27 25 28 24 24 30 32 Bahia 180 183 179 182 182 187 181 Ceará 49 51 49 51 51 81 89 Maranhão 33 27 32 28 28 32 32 Paraíba 32 29 35 31 31 33 35 Pernambuco 67 66 62 64 64 79 83 Piauí 16 14 16 15 15 19 20 Rio Grande do Norte 71 68 53 41 41 45 46 Sergipe 22 21 23 28 28 33 34 Total 497 484 477 464 464 539 551 In 2010, the region’s fleet totaled 58,163 vehicles In 2010, there were 551 vehicle rental companies in the region

40 REGIONAL BOARDS 2011 ABLA YEARBOOK Rodrigo Flávio Sá Roriz Federal District Joades Alves de Souza Goiás Alvani Manoel Laurindo Mato Grosso Marco Antonio de Almeida Lemos Mato Grosso do Sul 2004 2005 2006 2007 2008 2009 2010 Federal District 7,450 9,225 10,245 11,893 13,667 15,180 16,216 Goiás 4,632 4,830 5,862 6,683 7,618 7,000 8,521 Mato Grosso 2,003 2,110 1,573 1,856 2,172 3,423 3,765 Mato Grosso do Sul 1,420 1,520 2,293 2,637 3,112 3,215 3,925 Total 15,505 17,685 19,973 23,069 26,569 28,818 32,427 Automobile fleet Number of vehicle rental companies 2004 2005 2006 2007 2008 2009 2010 Federal District 43 48 47 46 46 49 52 Goiás 48 45 45 58 52 44 48 Mato Grosso 26 21 29 18 18 12 26 Mato Grosso do Sul 36 33 17 28 28 24 17 Total 153 147 138 150 144 129 143 Center-West In 2010, the region’s fleet totaled 32,427 vehicles In 2010, there were 143 vehicle rental companies in the region

Southeast Márcio Castelo Branco Gonçalves Espírito Santo Leonardo Soares Nogueira Silva Minas Gerais Mauro Roberto Alves Ribeiro Minas Gerais Gustavo do Carmo Azevedo Rio de Janeiro Flávio Gerdulo Greater São Paulo Marcelo Ribeiro Fernandes São Paulo State (not including Greater São Paulo) Eládio Paniagua Jr. Greater São Paulo 41 REGIONAL BOARDS 2011 ABLA YEARBOOK 2004 2005 2006 2007 2008 2009 2010 Espírito Santo 5,975 6,090 6,255 7,006 7,950 8,500 9,100 Minas Gerais 20,365 28,960 33,145 37,454 42,327 45,559 52,028 Rio de Janeiro 18,261 19,365 22,936 26,147 28,762 33,076 52,200 Greater São Paulo 61,346 66,996 75,324 85,116 93,628 106,657 115,568 São Paulo State (not including Greater São Paulo) 19,115 21,087 23,875 26,501 29,881 32,820 37,308 Total 125,062 142,498 161,535 182,224 202,548 226,612 266,204 2004 2005 2006 2007 2008 2009 2010 Espírito Santo 101 94 97 82 82 89 91 Minas Gerais 190 201 213 220 220 216 219 Rio de Janeiro 135 131 128 117 117 118 119 Greater São Paulo 293 312 301 250 246 225 225 São Paulo State (not including Greater São Paulo) 148 151 149 194 192 179 179 Total 867 889 888 863 857 827 833 Number of vehicle rental companies Automobile fleet In 2010, the region’s fleet totaled 266,204 vehicles In 2010, there were 833 vehicle rental companies in the region

42 REGIONAL BOARDS 2011 ABLA YEARBOOK Walmor Weiss Paraná Félix Peter Rio Grande do Sul Marco Antonio Ramos Gomes Santa Catarina 2004 2005 2006 2007 2008 2009 2010 Paraná 1,134 14,930 15,500 17,050 20,144 26,340 28,448 Rio Grande do Sul 9,736 8,520 7,983 8,861 10,103 11,113 11,240 Santa Catarina 3,907 2,560 2,591 2,902 3,279 3,910 4,111 Total 26,777 26,010 26,074 28,813 33,526 41,363 43,799 Automobile fleet Number of vehicle rental companies 2004 2005 2006 2007 2008 2009 2010 Paraná 103 98 103 110 110 116 118 Rio Grande do Sul 149 133 129 109 109 121 124 Santa Catarina 99 88 93 95 95 102 106 Total 351 319 325 314 314 339 348 South In 2010, the region’s fleet totaled 43,799 vehicles In 2010, there were 348 vehicle rental companies in the region

44 TOURISM The reinvention of Brazilian tourism By Pedro Novais Minister of Tourism The task of facing up to new situations, leaving the comfort zone, is not an easy one, but it can be enjoyable. The changes that Brazil has been through in recent years pose a new challenge for the tourism industry, namely: how can the sector adapt to the current market, with its new consumer profile? The praiseworthy entrance to the market of members of society from what is known as social class C creates a new dynamic, which is not fully visible or clear for many businesspeople. However, for the more adventurous and those who do not shy away from challenges, the advent of this new Brazil has been recognized as an unprecedented and powerful opportunity for good business and high profits. Today it is imperative to be aware of the homemakers who until recently never ever thought about taking a vacation but who are now catching airplanes with their families. In this context, this demand for life’s little extras, basic needs having been satisfied, is as welcome as it is to be desired. And what does car rental have to do with this? What should be done to include this segment in an effective and profitable manner in this new niche market? It is clear that it is up to each company to discover the most appropriate response. Go beyond off the beaten track, on short but no less-exciting trips – that is what we want tourists to do. After all, Brazil is fortunate in being such a diverse country that on one-day trips from any state capital you can have so many experiences. And why not rent a car to do this? It may still seem to many people that rental cars are affordable only to the privileged few – a luxury, in other words. But this paradigm can be broken down. After all, if even air travel is within the reach of a market that was previously unimaginable, the same idea can be stretched to other sectors of the tourism chain. The gauntlet has been thrown down for the car rental segment. And we at the Ministry of Tourism understand that the solution can benefit everyone - the end consumer, who will have better access to new destinations, businesspeople, who can increase their turnover, and the communities outside the established centers, who can benefit from the new intake of visitors. 2011 ABLA YEARBOOK

The stream of international tourists is expected to account for a hotel occupation level of 79%, generating revenues of almost R$ 6 billion. Tourism-related segments are the ones who will benefit. As the 2014World Cup draws closer, a more objective idea of the advantages the world’s biggest sporting event will offer Brazil becomes clearer. Source: Ernst & Young Study, in partnership with Fundação Getulio Vargas (FGV) The World Cup leverages the vehicle rental sector 46 PERSPECTIVE 2011 ABLA YEARBOOK International tourists will account for 79% of the market This will generate additional revenues of R$ 5.94 billion for tourism-related sectors (including vehicle rental) The car rental sector Estimates The large influx of tourists could generate additional revenues of R$ 142 billion for the Brazilian economy The hospitality industry will build over 20,000 units to welcome visitors

The economy The vehicle rental segment will achieve good results from tourists traveling around This business is highly consolidated abroad and annually turns over more than US$ 500 million in Italy and US$ 20 billion in the United States 47 PERSPECTIVE 2011 ABLA YEARBOOK The thriving Brazilian economy and industrial investment has been added to the holding of the World Cup in the forecasts by the vehicle rental sector and the entire related chain With 12 host cities around Brazil and heavy investment being made in highways, the vehicle rental sector will benefit from the traveling between these cities The total impact is estimated at almost R$ 3 billion The cities that will host the games are: Manaus, AM | Fortaleza, CE | Natal, RN | Recife, PE | Salvador, BA Cuiabá, MT | Brasília, DF | Belo Horizonte, MG | Rio de Janeiro, RJ São Paulo, SP | Curitiba, PR | Porto Alegre, RS Among smaller companies, eleven sectors of the economy will be directly affected by the event. The vehicle parts and accessories industries rank in 2nd place Among the segments investing heaviest Mobility

48 CNT Social commitment In 2010, fulfilling theirmission to develop and promote transport, to improve workers’ quality of life and professional performance, Brazil’s Transport Social Service (SEST) and the National Transport Education Service (SENAT) at the National Transport Confederation (CNT) reached the milestone of 100 clients served since their inception in 1993. Last year, the institution served seven million clients in all its areas of operations. In its 137 units, six million people were served by social programs operating in healthcare, sports, leisure and culture. Training courses served over one million professionals in the transport sector. “The figures consolidate SEST SENAT as an institution that is aware of its responsibility, through the efficiency of the transport services that are being provided to society,” says the president of the CNT and SEST SENAT, Senator Clésio Andrade. In the areas of professional education 396,567 people were trained in classrooms, and 54,727 people enrolled on the distance education program in 2010. The 200-plus courses offered by SEST SENAT serve the needs of the market, which is increasingly demanding more qualified professionals to operate in the different functions involved in transport, both in the passengers and cargo areas. In the social promotion, SEST SENAT grew faster in 2010 than it did the year before, serving 700,000 people more than in 2009, an increase of 14%. It served 275,000 people in the medical area, 806,000 in the dental area, 830,000 in health education, and 4.13 million people in major sporting, leisure and culture drives. In themedical area, themainspecialties were general practitioners, with 32%, then ophthalmologists, with 25%. Physiotherapy and psychology, which began in 2010, also had significant numbers, with 20,708 and 6,047 consultations, respectively. In health education, the number of people served last year was also up on 2009. More than 1.9 million people were served in individual actions, campaigns, lectures and seminars on various topics. For the SEST SENAT, physical and cultural activities are also important components for the development of human values. Hence, the units run venues suitable for sports, leisure and cultural activities, such as soccer fields, courts, water parks, gymnasiums, playgrounds, games rooms and barbecue areas. This is the result of the commitment SEST SENAT has assumed with workers in the transport sector since its foundation. SEST SENAT’s mission for the next few years is to strengthen the transport business, so contributing to an ever-better Brazil. 2011 ABLA YEARBOOK SEST SENAT has set a record, with more than 100 million people served since its creation, in 1993. Last year, seven million people were served.