Good morning, and welcome to the conference call of Movida to discuss the earnings regarding the third quarter 2021. Today with us are Renato Franklin, CEO, and Edmar Neto, CFO and IR Officer. Right now, all participants are connected as listeners only. Later on, we are going to start the Q&A session when further instructions will be provided. Should you need any help during the conference call, please reach the operator by pressing star zero. Before moving on, we would like to let you know that any statements made during this conference call in relation to the company's business outlooks, projections, operating, and financial goals are based on the beliefs and assumptions of Movida's management and rely on information currently available to the company. Forward-looking statements are not a guarantee of performance.
They involve risks, uncertainties, and assumptions since they refer to future events and therefore depend on circumstances that may or may not occur. General economic conditions, industry conditions, and other operating factors may affect the company's future results and lead to results that will materially differ from those in the forward-looking statements. Now we are going to turn the floor to Mr. Renato Franklin. Please, Mr. Franklin, you can go on.
Good morning and good day, everyone. Welcome to our conference call to talk about the results of the third quarter 2021. The results of this first quarter, you saw the number, really show the consolidation of a new base for the company. It is a new level preparing us for a new cycle of growth with generation of value.
We are going to talk a bit about the numbers and the context that we are going through, the market scenario, and how the company is reacting to the scenario to guarantee opportunities of growth. Let's start with the quarter highlights, Slide 3. To the left, we see the sustainable evolution of our results in all our business lines. The first highlight is the company scale, growth of 60,000 cars in one year, so quite material. Organic growth, you're talking about 25,000 cars from CS Frotas that was merged into Movida. Total net revenue reached BRL 1.6 billion. We are talking about 52% growth over the third quarter 2020, with strong contribution of the rental car units. Remember that we have a lower offer of cars, so we are growing our rental car and we are selling less cars.
Our EBITDA with commitment of operational efficiency is gaining margin and giving us room to evolve in operational efficiency rental. BRL 613 million, 187% greater than the third quarter 2020. In Rent a Car alone, we're talking about an EBITDA of BRL 426 million, 111% growth, more than double than that of the third quarter 2020. I'm going to talk about this trend of growing EBITDA in the Rent a Car business that is going to more than offset the used car sales in the long term. Net income BRL 279 million, seven times more than the third quarter 2020. We are talking about a new level. We are talking of more than BRL 1 billion in profits when you annualize the third quarter.
Returns, our main commitment, ROIC of almost 14%, return on equity 25%. We are showing LTM numbers. If you annualize the numbers, even better. Very, very positive return. Record cash production, BRL 6 billion, according to our last fundraisings. That will support company growth, the change in the market, and everything that is to coming. On the right, we have the most important highlight in terms of recent bets. First, the merger of CS Frotas. Just to make it clear, the accounting, we are considering August and September, not July. As of the fourth quarter, you're going to see the full quarter. The annualized quarter is likely better than what we are showing here. Recognitions that have to do with ESG. Remember that the company was the first rent a car company with a B certification.
Very important things in ESG, but also digital transformation. Movida has always focused on that, on the individual clients by means of the digital platforms, and this is the recognition that, you know, shows, you know, the company journey that is being digitalized in the company. These are the main highlights. Now I would like you to go to perhaps the most important slide, which is slide number four, where we talk a bit about market context and the execution of the company that ensures value in the short, mid, and long term. What do we want to highlight here? To the left is the structural change that is going on. What's that? Well, car prices, we know that they're going up. You see Movida's average purchase price, it went up 61% year-on-year. That's quite relevant.
Why do we have this increase? We are really, you know, showing you what we see just, you know, with commitment to our transparency. 21% are in the same models, but 40% is a changing mix of models and versions. What do you mean by that, model and versions? You have the percentage of the SUV that we buy today that is higher than in the past. It happened in developed countries that fleets got better, more equipment, giving more to the client, and this is happening in Brazil. That happens with versions, especially entry cars. In the past, we would buy a more basic version, and now we are buying more equipped versions with more accessories that can deliver a better experience to clients. But they cost more, and so we have to charge more accordingly.
The link here is what you see on the right of the slide before going down, which is the transformation of prices in Movida when you're talking about the Rent a Car business. We are going to talk more about that. In the Rent a Car, the average daily rate went from BRL 70 to BRL 96 , but that's the average of the quarter. The higher transformation gets to the end of the quarter. In the end of the quarter, we were at BRL 112 of average daily rate, which is the 60% price increase. We are going to give you a bit more color to explain the price increases and our strategy, but that more than offsets the increase in the purchase of cars. The same goes for Fleet Management and outsourcing.
We see the average ticket going up, but the new contracts are much higher than that. We also have a 60% increase here in the prices for Fleet Management and outsourcing in the amount of average prices of closed contracts year-over-year. Other structure points. We have a higher inflation, and we have the interest rates going on. We saw that yesterday the interest rate went to 7.75% with an increase of 4.25 percentage points if you consider the third quarter 2020. The expectation is 9.5% for 2022. How do we fight that? Well, we have two levers. First, the short term. In the short term, we have a positive factor in the market. The negative is the interest rate. The good thing is that Seminovos have more price.
You know, when you compare, you know, the FIPE price list and our assets, we have BRL 2.6 billion to be captured with the sale of these cars, which protect us in the short term. How about the mid and long term? We are growing prices considering the interest rate curve in the Rent a Car gradually, and in the Fleet Management outsourcing, we are already considering this interest rate curve for some time now. So the prices are already pricing. The contracts are already pricing these increase. Fleet management outsourcing is already growing 53% of our fleet, giving us the predictability of our return rates, considering this interest rate of up to 10% plus the spread.
We are protected, and that's why we are comfortable to say that we are going to keep the generation of value in the company. Finally, we have been conservative with regards to depreciation of new cars, perhaps too conservative. Investors are asking us that all the time, but we prefer to be conservative. If depreciation is better than expected, and today, this month, we are having numbers better than what we expected a month ago, then we will probably reap the fruit or higher benefits in the Seminovos than we expected. We will adjust the rate, but always being a bit more conservative because we have less predictability here. There is an additional point to mention, which is our people. Our people make the difference, and we had important reinforcement in our organization structure that we want to share with you.
To summarize, we use this period with less growth because, you know, of the car supply, but which we were able to grow. We really built the basis for sustainable growth by increasing our rates, having more cars in Fleet Management and outsourcing, gains of scale in Seminovos, in everything, so we are getting better margin in all our business segments. This is the key message that we are giving to you today. Now I'm having some slides just to give you a bit more color on the items I mentioned. Let's start with slide number five when we talk about rental prices. Here in the bottom part of the slide, we see how much the purchase amount went up. We would buy at BRL 52,000, and we went to BRL 83,000 average car prices, 60% increase.
Daily Rent a Car already 6% at BRL 112. How are we increasing? Are you increasing prices? Yes, we have an increase on price. We have the mix of cars. Again, I said more equipped cars, SUVs. You have more individuals. Remember that Movida has leadership in the digital platforms, and you're going to see that clearly, and you have those eventual clients. Last year we had the strategy of protecting the company in the case of lockdown and restrictions. We had more monthly contracts, and now we are doing the opposite. We are going to go back to be basically eventual rentals. That is contracts of three to seven days instead of 30 days, 60 days, 90 days, which increase the average ticket. You're going to see this trend of our daily rate going up month after month.
In addition, in the Rent a Car, revenue per car is higher than the average daily rate. Why? Because we have gained some operational efficiency occupancy. We have a new digital evolution in algorithms for pricing and car combination. That has helped us, and that will bring us even further efficiency. When you think of GTF, that's the same thing. Now here we are showing you the numbers to see something that you didn't see. See, our average is BRL 1,408, but, you know, for those new contracts, you know, for you to know how many cars you're having, what's the average you're going to have, you're going to get to BRL 2,000. Just to make it clear for everyone that the new contract amount is very different. Why? Because we are focusing on three businesses.
Brand new cars with high tickets, that's our advantage. We have a demand for all cars today. If OEMs want to sell, I can, you know, work with SUVs. We are going to adjust the company for whatever you have supply and is profitable. You have CS Frotas that also helps us to have a higher ticket, and we are also working with small and medium businesses and new sales channels to be explored to further increase the share of this segment with even better margin. The conclusion on the slide. First, our average ticket is going up in line with the prices that we are paying. Second, the average ticket is going faster, is going up faster than the average price of the assets, because I'm going to have additional value generation in the long term as we transform the company.
Third is that we continue to buy at a much better price than the average price of the Brazilian retail market. What I'm showing, our average purchase price is BRL 83,000, and the 20 most sold cars in Brazil have an average price that is BRL 110,000. I'm buying 24% below the average price, which is very similar to what we always had. Movida, we buy a bit more of SUV, and the difference is very close to the discount price that we always had. A bit smaller because of the mix that I have, but at a very good level. Another very important slide for us to reinforce our message. Now let's go to Slide 6, where we talk about the contribution by GTF. Okay. Here I show the fleet.
We went from 109,000 to 168,000 cars, reinforcing that we are going way above the average above the market. See GTF, we went from 41,000 to 88,000. Today the GTF is 53% of our fleet, which will contribute to our resilience. Our backlog of contracted revenue is BRL 1.8 billion. This is 150% growth over the third quarter 2020. It is quite relevant. Here I'm not considering the extension of CS Frotas, 90% of which are extendable up to five years. With that it would be an even greater number, almost double. We have much predictability and resilience for the future. EBITDA. Why I'm showing the EBITDA of Rent a Car?
Because, as you know, semi-used cars will have a much better EBITDA this year and next year. 2023, 2024, it's going to stabilize, but the Rent a Car will more than offset this, you know, settlement. We are continuing to grow, and we are continuing to grow margin. That will offset the higher interest rates and the normalization of Seminovos in the future. Let's now go to slide number seven, to talk about the Seminovos, the used cars. Again, just to repeat what I said. Today we have BRL 9.4 billion in our asset base. It was BRL 4.8 billion. We're more than double. Now, if you're talking about market value, you're talking about BRL 12 billion.
This increase of brand new cars that, you know, also reflect used cars, you know, there will come a time that inflation for brand new cars is going back to 4% a year. The used cars are not going to grow prices. This is not going to be abrupt, only if you have incentives that nobody expecting. This is a given, and it should keep for more time than expected. Why am I saying that? Because some investors say, "Oh, this is a one-off, increase." No, just this additional valuation, this BRL 2.6 billion, it's 8.3 x, the net expenses of the company. Even if the interest rates go up, I'm going to even have more benefits. Why I'm saying that? Because people say, "Oh, let's exclude, the Seminovos.
Let's exclude the interest rates." They are not considering the short-term gains of used cars and the long-term gains of the interest rates. I see a maintenance of the generation of value, which is our commitment to keep the spread at 5% minimum, and to deliver the best return on equity and on capital investment. This is our target. Finally, I say that the transformation of daily rates will protect us in the midterm to guarantee this generation of value that I'm talking about. Now I'm going to slide number eight, and I'm going to talk about the structure that we have from now on. On the left, we show you how we reinforce the company's executive structure in 2021. First, we have a management area dedicated to the Rent a Car.
In the past, we had a commercial director to this area, but now we have a new management. Now we have a new management area, two brand-new cars, which we also did not have before, and it is growing exponentially. We have a new executive to the commercial management of GTF to focus on B2B. This is growing, and this is also going to enable us to gain margins in GTF. Seminovos, we brought a new executive from the market, a quite senior person focused on retail that will again compensate or offset the normalization rates for the Seminovos, because we know the market will normalize, but I'm going to evolve in retail and partially offset that event. Remember, we already had that with an evolution of capital gains in Movida and also with better performance in the market.
We have a new management with asset turnover, which is becoming more and more important, a new management area for treasury and IR, and also performance and control for us to capture benefits and opportunities even better when we take our KPIs. This is going to be José Bruno that is here in the call today together with our team. We have a new expansion area. We talked about our plan of expanding stores. We are going to open lots of stores faster than expected. If we continue keeping cars as we are, we are going to open them faster. If not, we are going to take a bit longer. A new digital structure. We have a new CIO for the company, a person that grew inside and has, you know, the culture, the digital culture of the company.
We have, you know, several, you know, programming training for people. We have more than 160 robots in the back office alone in pricing, so we evolved a lot with this structure and therefore with, you know, improvements in revenue per car and safety that also enables us to continue our investments in digital. I reinforce our efficiency in management. Movida has also always set apart because of its culture. We have a culture of low cost, and with the gain of productivity and growth of the company, this difference is even higher. Today, really, if you compare, you know, to our competitors, we are way apart.
Growth way above the market and gains of you know in the Rent a Car business that is going to be even better for the future of the company. All that together explain why we're delivering such good results today and how these results will get even better in the future. Now I'm going to go to slide number nine to show you know the history of the company. Net revenue BRL 1.6 billion. When you take a look at 12 months, it's BRL 4.5 billion. If you annualize numbers, BRL 6.5 billion. Growth of almost BRL 1 billion when you compare to the third quarter 2020. In EBITDA even more than that. You're talking about BRL 600 million, which is 1.6 to the back.
If you look forward, you're talking about BRL 2.5 billion. Here it's very important to break down. Take a look. You know, BRL 1.8 billion comes from the Rent a Car. Seminovos will go back to normal in 2023, 2024. Again, you know, the growth in the Rent a Car more than offsets the Seminovos. EBIT at the same proportion, BRL 2 billion of EBIT, another level for the company. Net income more than BRL 1 billion if we annualize the third quarter. A completely new level for the company that will enable us to have even more opportunities because of scale and performance. Finally, before I go to Edmar, I'm on Slide 10 just to show you our organic growth plus the acquisition of CS. We have the largest growth in the market. It has been part of our history since 2014.
In the last year alone, we grew by 60,000 cars. See, we are prepared for the new cycle with much more stability and comfort of what we are to deliver for the future. This is my key message. Now I'm going to turn to Edmar, that is going to give you more color about each business unit.
Hello, everyone. Good afternoon for those that are in Brazil. Good morning for those that are in the U.S. I'm going to start on Page 11, showing the Rent a Car results. These results reinforce what Renato mentioned in the beginning of the call. You see a company transformation. We are already talking about the Rent a Car revenue of BRL 1.5 billion in the last 12 months.
In this quarter alone, BRL 443 million in net revenue and a record EBITDA margin, EBITDA margin record of more than 50%. EBITDA of BRL 233 million, showing that we are in the Rent a Car in LTM close to our targets, and we are going up our prices vigorously. EBIT nominal amounts also record in the quarter and year to date, more than BRL 500 million in the last 12 months. The highlight is price. Daily tickets more than BRL 96. Average ticket with Movida always higher than the competition and at BRL 2,453, and LTM almost getting to BRL 20 million year to date. We are talking about 5 million daily rates a day.
If you go to the next page, we talk here about the transformation in GTF, and here we talk about two things. We talk about scale, and here you can see that we went from BRL 517 million net revenue in 2020 to almost BRL 800 million LTM in the third quarter 2021. Very important growth. In the quarter alone, we are getting close to BRL 300 million, BRL 287 million, so another record and an EBITDA record with margin of 67%. Here I will recall that under our GTF business, we have Movida B2B, Fleet Management outsourcing. We have brand new cars that is growing at relevant rate, which is B2C, and now CS Frotas to the public segment.
When we talk about prices, and Renato already mentioned that, you see a record monthly ticket of 1.4. The number of daily rates more than 6 million, also a record and a record EBIT and monthly margin in the last month with everything that happened in the company, with you know, prices going up and down at 48%. On the next slides, I talk about used cars, our Seminovos segment. We are certainly benefiting from the evolution of prices, 1,405 cars being sold at BRL 59,000. That led us to revenues of BRL 845 million. Also record EBITDA with 22% in the quarter. Gross margin also record of 27%, and here we see the benefit of scale with SG&A consistently at 6%.
As Renato mentioned, we are going to see this number even lower because there will be a dilution because of a new level of prices that we are going to have with cars. On Page 14, here I'm going to talk a bit about our cash position. In the quarter, we raised BRL 3 million, basically with the bond of BRL 300 million. That was a re-tap of what we had and also an issue of debentures of BRL 1.75 billion. In the past 18 months, we were able to relevantly extend our company's debt profile. The cash is conservative and is advances, you know, possible raising of funds for next year. We have, you know, cash that covering our debt for the next five years.
It's important to say that our net debt today is at 5.7x, and with the increase of our EBITDA, we're able to keep the leverage below 3x as our EBITDA, as you could see, had very relevant advances. Once again, we take a look at our maturity schedule, and the Brazilian electoral period is covered in our cash position, given everything that we did in the last 18 months. With that, I turn back to Renato. Renato?
Thanks, Ed. Now we are going to go to slide number 15, just for us to summarize what we are like today and what we see for the future. 2019, very well evolution of the company. We closed the gap of Seminovos. The difference was almost gone. We were doing very well.
2020, we had the pandemic, but we did not stand still. We accelerated the company's digital transformation. The web check-in went up. We continue with our cars 100% connected since 2018, preventing thefts and frauds and also helping us with the stability of our results. We relaunched the Movida brand new cars with a 100% digital journey. That has really put us in the forefront to grow above the market. 2021 we had the merger of CS, which was very important with 25,000 cars that help us out, and the transformation of prices, gaining occupancy rates, which is also very important. How can we have price transformation in the future? We're talking about expansion of stores and et cetera. Opening stores help us to have more sales channels that enable us to have greater demand.
We can price our cars better. In addition to growing number of stores, we opened 27 stores, if you think, 277 stores, if you consider the rental car and Seminovos. We also have additional footage, as sometimes you don't open store, but you have stores that are with larger footage. The plan is, and you saw that on Simpar Day, we are going to open new stores in the midterm, and many stores can be transformed to the current reality, as we already did in 2021. Yeah, I think that you should come and visit our stores just to take a look at the quality of our services. For 2021. For 2022, we are going to continue transforming our prices.
As interests go up, we are going to increase our prices. We are conservative being conservative, but also with real prices. Continue increasing our profitability, increasing credibility. Our capital structure, very robust. Now we want to decrease our capital costs but keep our liability management. That is to continue replacing our debt for a cheaper debt, but we don't want to run any risks at the electoral period. We advanced at that not to have a problem there. A plan to expand the stores, as I mentioned, and focus on the growth of GTF, especially for the Movida brand new cars. In addition to B2B, as I mentioned, small and medium businesses, and the public segment that still has very appealing profitability. We are only going to grow where there is profitability.
I'm just going to buy cars when I can rent them at a decent yield. That's how we have been working so far, and that's what we are going to do for the future. Our commitment is to deliver results, generate value, and we believe we can do that by massively growing. This is what we see in the market. This is what our numbers show. Thank you very much, and now we are going to open for your questions so that we might give you a bit more color or on any questions that you might have. Thank you very much.
Our first question comes from Guilherme Mendes from JP Morgan.
Hello, Renato, Ed. Good afternoon.
Thanks for taking my question. My question is about OEMs. Renato, you mentioned in the presentation that you think things are going to be back to normal more towards the end of the year. What's the level of confidence that you have for 2022 in terms of growth, and what risks do you think that you're going to have to execute the volumes plan? And also discount levels. You said that the discount is not constant referred to last year, and I would like to know if there is any change in the level of discounts from your purchases or purchase conditions?
Okay, thanks for your question. We have closed agreements that support our growth plans. We don't know if all OEMs are going to keep their agreements.
They say it's going to be like this, but what if things get worse? Well, there might be changes. Some people today say that 2022 is still going to be a difficult year. What people say is that when the chip normalizes, you know, other manufacturers are still adapting to the volumes. That's why we are thinking that it's going to normalize more towards the end of 2022. We are not disclosing numbers, but we think that we are going to execute our plans. In revenue it is going to grow even more because we have gains of prices. When you talk about commercial terms, discounts, the agreements are more or less the same. Some cars lost 0.5 points, others not, but we're able to make very good agreements.
The major advantage for this year is that because the problem is still there, those cars, we are thinking that they would normalize faster, and probably they are going to have an appreciation as the cars we are selling now. It's possible that we are being a bit more conservative, and we are going to adjust this. We are pricing our Rent a Car thinking that we can have more, a higher price. You know, can adjust that, if that does not happen to the semi-new ones. I think that the major advantage of Movida is that we work with a wider range of OEMs. If you take a look at you know of our mix, we have agreements with all OEMs. Except for Ford that left the country, we have agreements with everyone.
We were the only company that really decided to sell all kinds of cars, and that really paid off because today the OEMs consider us differently, and that's why we have more confidence in the sales of our cars.
Okay, thank you very much.
Our next question comes from Rogerio Araujo, UBS BB.
Hello, good afternoon, Renato, Edmar. Congratulations on your results. I would just like to check one thing, and then I have two questions. Just to check, from what I understood, your new level of purchase should be BRL 80,000-BRL 85,000 from now on. We should expect that for the next cycle, the ticket should increase by about 60% in one year for the Rent a Car and two years for the fleet. Is that right? Is that what I could use in the models? Just to check.
That's a very good question. Well, if you get the agreements made, the average ticket would be lower than BRL 83,000. Now, if you ask me what I believe? I think OEMs will offer more expensive cars, so it's possible we keep the ticket at this range of BRL 80,000. It can be a bit less, it can be this. The price will be proportional to the car that we buy. Yes, if it is at BRL 83,000, you're going to see the whole thing growing at 60%. If it is just the closed mix, then we could reduce it a little, and the price is not going to be as high. I believe in the projection that you're saying. BRL 80-something with a price that is suitable to this amount.
Okay, thank you very much. Now my questions. One, hedge.
How is it working? What do you have in terms of hedge instrument for future contracts? At the time of sale, you protect yourselves at the curve, or are you exposed to these fluctuations? I know that in the past you did not have that. In the Rent a Car, that's for fleet. In the Rent a Car, you don't have hedge. I would like to know your discipline in terms of supply. How are you monitoring this? Are you going to decelerate and grow the fleet if the price goes down? How are you going to work with the Rent a Car in terms of transferring prices to passing on prices to consumers?
In the two segments, how are you protecting yourselves, Fleet Management and Rent a Car? The second question, OEM. I see you getting more cars than the industry as a whole. Why is that? Why are you getting more cars than the market itself? These are my questions.
Rogerio, this is Edmar speaking. Thanks for your question. Well, basically, in terms of hedging, we have our debt hedged. With regard to contracts and prices in the Fleet Management and Rent a Car, we are pricing with a little cushion. Since interest rates went up, we changed our cost of capital for pricing purposes, and that protects us.
With regard to derivative instruments, we are looking into them, but we haven't taken a position because we believe there is lots of volatility with premiums and curves in the short term. We are looking into it, and we prefer to operate on prices. That's what we are doing. Just to reinforce, the price always advances the curve. When, you know, the interest rates were even going down, we were still projecting at two digits. The OEMs, you know, long-term relationship. Alliances with OEMs is a long-term relationship. You have to have a differentiated relationship with each OEM that helps you in a unique positioning. You know, I'm suspected to say, but I think Movida is better positioned to explore the individual client markets, the digital market, and working with OEMs. This is what we have been doing.
We were the first to close deals for 2021, for 2022. With that, we can keep better commercial terms and preferences in volumes. This is what we have been doing. Movida's premium positioning, the value of our used cars, these are all appealing to OEMs, and we are honored by the relationship and everything that we have built with each of the OEMs that support us. I think that's it.
Thank you, gentlemen. Once again, congratulations.
Thank you, Rogerio. Best regards.
Our next question comes from Victor Mizusaki from Bradesco BBI.
Good afternoon. Congratulations on your results. I have two questions. The first is a follow-up on the daily rate prices. Your prices at BRL 2,000, Fleet Management as well.
As Renato mentioned, you have a scale effect and dilution of fixed costs. Do you think it makes sense if you keep this daily rate at BRL 112 in the fourth quarter, you're going to see a sequential increase of margins. Is that correct? About CS Frotas that you are now consolidating in the third quarter, what's the process like and when would we start to see the capture of synergies between the two companies?
Hi, Victor. This is Edmar speaking. Well, first, I'm going to talk about margins, and you are correct with regards to trends. If you take a look at the slide that we showed, it showed an evolution of 14 points in our margins since the IPO because of everything that is going on in the Rent a Car segment.
If you look forward, I agree with you. The idea is to continue to renew our fleet, and that will bring us margin gains for the next quarters. As Renato mentioned in his management message, we are very confident about the fourth quarter, which is not going to be very different from the fourth quarter last year. As for the merger of CS Frotas, I have two comments. First, the merger has already taken place. When we incorporated the results of September and August, July was out, all the processes, everything, I already entered the concept that we agreed on. That is, CS Frotas has its way to operate, and it is going to continue to do so, and we are going to capture synergy if the operation lets us.
The greatest synergy, and Renato is going to talk about that, is in car sales, and we are going to address that in the coming months. As of 12 months, we are going to have a fully integrated scenario. Yes, in the sale of cars, we start with a large fleet sales team supporting one another, but still we have different corporate taxpayer numbers. We are not exploring some levers immediately. That has a time, and it's going on. Along next year, we are going to capture more and more synergies, and in the end of the year, we are going to get two synergies fully integrated and captured.
Thank you very much.
My pleasure, Victor.
Our next question comes from João Oliveira.
Good morning, everyone. Congratulations on your results. I have two questions.
The first, I would like to know how you see the value generation to shareholders through the buyback program since this is an option for the company? Second, I would like to understand this increase of new cars. Do you think will affect the end consumer? Thank you.
Hi, João. I'm going to start with your second question. The increase of prices for new cars really encourage rentals because the first thing, you know, is cash disbursement. You know, if the car, a brand new car is, I don't know, at BRL 60,000, that's one thing. It is BRL 110,000, it's another thing. It's a lot more difficult to buy.
When you have a higher price, you know, the people who are buying understand the value of money even more because, you know, they see the value. When they take into consideration the depreciation and the opportunity cost, you know, the rental is even more advantageous than buying. That probably is going to increase rentals.
This is Edmar. About the buyback program. As other buyback programs that we had in the company since the IPO, they are being used for the compensation of our officers, myself included. We don't have any resolution different from that, and we have to wait for the next developments, and that's it.
Okay, thank you very much, and I wish you a good day.
Likewise.
Our next question comes from Citi.
Filipe, good morning and congratulations on your results.
I have one question, with regards not only Movida, but the market as a whole, and also considering, the merger of Localiza and Unidas. We saw that they agreed on this merger by means of a series of actions, including sales of operations and cars in some areas of the country. I would like to know if you see an appetite by the market to absorb these cars and demand the sale that they will have to make, and how you see this movement affecting your business.
Hi, Filipe. Thanks for your question. Well, this is a very complex transaction. The opinion of the agency, makes it clear, and this is to be judged in court. They have a period to, come to a final sentence. We are only going to say something in the proceedings.
What we can say is that we are focusing on growing our company, continue to generate value, having long-term relationship with the OEMs, which is going to be more and more important, and really treat all our stakeholders in an agenda that is directed to our business and generating value to the company. That's what we can say. I think for the market as a whole, having less competition perhaps can accelerate an increase of prices. Perhaps it can help us to have even higher prices for the fourth quarter. As you know, we talked about the Rent a Car, the daily rate is going to be even higher. More demand than supply, higher prices.
Okay, thank you very much.
Our next question comes from the English line. [Sarah Cullum] from the Asset Management Co.
Hi, and thank you for taking the questions. I just had a couple of follow-ups. Regarding your hedging strategy, correct me if I'm wrong, but I believe you've hedged the dollar bonds not only to reais but also from fixed to floating. I was wondering the rationale for converting the debt to floating rates in the context of rising rates, and if you'd consider unwinding those hedges?
This is Edmar speaking. I'm going to translate the question in English. It's basically the hedge strategy that we have in our bonds. Basically, it is for floating rates in Brazilian reais, and if there was the possibility of having it for fixed rates. That's the first question. The second, if in view of that, the company has any appetite instead of having these positions. It is a complex matter, so I'm going to try and answer it cautiously. First, our debt in dollars is compared to the CDI, which is our local benchmark. At the time of the issue, the market was more liquid, and it made more sense for the company to have a percentage of the CDI.
The option was CDI plus something, but, anyhow, we would be exposed to some kind of floating rate. At the time, we're talking about 150% of the CDI. Second, if the company has any interest in changing its hedge position of its debt. No. Part of the corporate policy and Movida's policy is to have its liabilities fully hedged without any exchange exposure. The hedge, which is principal and interest of 10 years, is to be maintained.
Thank you. Just one other question regarding the increase in the Rent a Car prices or the ticket that you're trying to pass through given the increase in interest rates. It seems the market is quite strong right now and you've been able to do that, but what gives you the confidence that next year you'll be able to continue to pass through the interest rates and higher ticket, given GDP growth is expected to be very minimal next year?
Okay. The question is, first of all, about the evolution of prices that we have in the Rent a Car. In the short term, we are being able to pass through prices, but the question is, in the future, in 2022, with the interest rate and a lower GDP growth, are we going to have, you know, the possibility of increasing our rates as we have? Okay. This is Renato answering. We have several products that have an overdemand and several sales channel, and that gives us the comfort that we are going to be able to pass through prices. What is going to change is the size of each business unit.
We might have segments of the Rent a Car that will not be able to absorb new prices, and therefore, we are going to have less cars in the segments because we want to have cars that generate value. On the other hand, I'm sure that other segments are going to grow even if prices are passed through. To give you an example, brand new cars, which is our subscription, long-term product, we have a demand that is five times higher than what we are having today. Clients want it, but I don't have cars for everyone. I increase prices. If there is no demand in some unit, I move cars to the other unit. Today all markets are under-penetrated in Brazil.
Leisure Rent a Car, Urban Mobility Rent a Car, Tourism Rent a Car that is coming back now, Corporate Tourism Rent a Car that will come back, app drivers that are lower because fuel prices are very high, and also the short and long-term subscription cars, Fleet Management for the private segment, for the public segment. We have several avenues of growth. We'll pass through prices in all of them, and we will fix the demand according to our supply. I'm sure that we are going to have very different prices for next year.
Our next question comes from Pedro Bruno from XP Investimentos.
Good afternoon, Renato, Edmar. Thanks for taking my question.
I'd like to explore with you the strategy or dynamics that you were thinking about depreciation by car, by segment, Rent a Car and Fleet Management, for the coming quarters and the evolution of this market dynamics that we are witnessing. I understand that to the limit you could depreciate. You talked about being conservative. You could depreciate zero, perhaps, in your P&L, and you would still report Seminovos margins above the normalized value given the market timing. But I would like to know how you are addressing that internally, thinking about the dynamics for the future. We see that little by little car depreciation is going down in Fleet Management and Rent a Car. In Fleet Management, you know, not as much compared to the previous quarter, but it is going down.
Thinking about the normalization of this market, what are your thoughts on that? Because we know that you're taking a conservative standing, but we would like to understand, you know, conceptually speaking, how you see that?
Okay, Pedro, this is Edmar here. Thanks for your question. As a reminder, last year we were the company that carried more depreciation for longer, waiting for the market to accommodate, and it did accommodate to our favor. About what we are doing today, what happens is that there will be an increase of depreciation quarter-over-quarter, and this increase is going to be tightly connected to the fleet renewal rate. Why is that?
Because the cars that leave our fleet and are sold typically already have enough depreciation, and the new cars will have higher depreciation because of a lack of visibility that we have as of that time. We prefer to be conservative and carry more depreciation now in the short term to have more comfort further along, knowing that the market is quite volatile. As a result of that, and Renato mentioned this in the presentation, in the past three quarters, we have been delivering margins that are precisely in line with the remainder of the market, although we had higher depreciation rates. For the future, I have two messages. First, as of 2023, we should start to see some accommodation in used cars. It's going to be slow, but it will happen, and then depreciation should go up.
Nominally speaking, it should increase reflecting the new car prices, which we talked about in this call. Prices increasing by 60% will translate in higher depreciation levels for the future. Renato is going to talk a bit about the market as a whole. We have preferred to be conservative in carrying the cars that join the fleet at a higher depreciation rate. What we think, today the FIPE, the price list, goes up 1% a month. It should go down 0.8% a month. When you buy a new car, it goes to the Rent a Car. It has 14 months. We are sure that in the next three months we are not going to see a drop, but then we don't know what is going to happen. We have expectations.
We have to expect depreciation, so we prefer to be conservative. Okay, in this month, if the market goes back, what would be the rate? This is it. When I buy a Fleet Management car, it's 36 months. It's a car that has more exposure. If it's a car that has six months to be sold, then, you know, we are okay. We don't have to be conservative. We already are excessively conservative. For brand-new cars, we are going to continue to be conservative. I think when the market goes back to normal and FIPE starts to go down, we are going to see whatever we have, and we are going to adjust things to deliver a strong margin in Seminovos way after normalization takes place.
When things change, then we can project, "Okay, within X quarters, we are going to have a less aggressive depreciation."
Thank you very much.
Ladies and gentlemen, as a reminder, if you have a question, just press star one. Our next question comes from the webcast. [Natalia Baum] from [Nova Capital]. The question is, when do you expect to have electric cars as brand-new cars, and what are the margins that you expect for the segment in a world in which fuel prices are going up and people are more and more concerned with ESG issues?
We are working to really justify the use of electric cars and help Brazil in adopting this fleet. We think it's an important agenda that it's going to happen, and Movida, because of its position, has an important role in that.
We were the first rent a car company to offer electric cars. We have the largest fleet. We have a very nice partnership with Nissan LEAF, the car that is most sold in the world, but we have others, MINI Cooper and which are cars that we have in retail but that in subscription. The volumes is still low. Materially speaking, the volume is low. The price considers a conservative depreciation of these cars. They have lower maintenance costs, no oil changes. We are still conservative in depreciation because the technology tends to evolve significantly in the coming years, reducing the cost of a conversion into electric cars and also battery costs, improving the autonomy, which is the major challenge of electric cars today. Today, clients that have electric cars use them for daily use.
We developed a solution together with Estapar to have electric chargers in companies. If you want to buy an electric car, we have, you know, excellent models to rent at competitive prices. The convenience of having chargers being installed in buildings and households has helped us to really rent cars well. There are still challenges. We are going to have a major launch on November 21st in our store at Marginal Tietê that you know has drivers from apps and Movida car. The cost of fuel has helped us.
Carbon credits is something that we also can, you know, work with, and we are going to have 11 fast charge stations and one ultra-fast charge station to try and really encourage the increase of the use of electric car with app drivers because that's it. The more the car is shared, the more it runs, the better the carbon emission. We really want to grow little by little. We believe that in Brazil we are going to have 15%-20% of electric cars production in the market by 2030. Very different from European numbers. Ethanol, remember, is Brazilian technology, which is very good in terms of carbon emissions, and it is our focus to work in this area.
Biofuels, ethanol, there are lots of things that we are discussing with the automotive industry that will help transform the Brazilian matrix in a different way that is happening in Europe.
Since there are no further questions, we are going to turn the call back to the company's management for their final considerations. Please, you may go on.
Well, I thank you all, everyone. Thank you for attending, for your support. Undoubtedly, your support has been paramount for us to consolidate this new level of results, create new scales, and profitability that will ensure performance and results for the company in the short, mid, and long term. We have a very positive outlook for the future. We are going to be able to continue raising prices, stabilizing the business, and generating value.
This is just the start of what we are doing, and I cannot fail to mention that our ESG has been evolving a lot. We talked about our recognition. I thank you. Last year, I was the only president to be invited to the UN preparatory meeting, and now I'm going to be part of a panel on transportation, talking about, you know, global transportation and carbon credits. Also I will attend the last round of Delta Leadership repr esenting Movida with Movida case, and a case from our transport industry that is recognized worldwide, which makes me honored but also gives me the responsibility to continue evolving and delivering our commitments in the long term. Thank you very much. I wish you a great day, and let's go.
Movida's conference call is now closed. We thank you very much for attending and wish you a good afternoon.