Good morning, and welcome to Movida's conference call to discuss the results regarding the second quarter of 2023. Today with us, we have Mr. Gustavo Moscatelli, CEO, Pedro de Almeida, CFO, and Ms. Camila Silva, IR Director. Right now, all participants are in listen-only mode. We'll later start the Q&A session when further instructions will be provided. Should any of you need assistance 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 relative 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 such forward-looking statements. We'll now turn the floor to Mr. Gustavo Moscatelli. Please, Mr. Moscatelli, you may go on.
Good morning, everyone, and welcome to Movida's conference call to discuss the earnings of the second quarter this year. First, I'd like to thank all Movida's employees that are working with lots of discipline with our main objective, which is creating value to our shareholders, and dedicating daily to deliver all improvement points we asked for this year. Thank you. Now I'm going to go on with the presentation of our results.
Slide three shows the evolution in all our businesses, seeking to extract maximum value through operational efficiency in each business model. We are executing in detail the strategic plans to create value with results even before expected. Our net revenue was BRL 2.2 billion in the quarter, growth of 23% in the revenues from rental since last year, with continuous evolution in all business segments and focus on operating efficiency. Operating fleet increased 10% year-on-year, with 214,000 cars total fleet. EBITDA, BRL 890 million. Capital structure is more and more healthy and robust, with reduction in leverage 2.9x EBITDA net debt in the quarter. In the Rent-a-Car segment, we had a transformation in the first quarter, with a reduction of 8,000 cars in the second quarter.
Altogether, 21,000 cars compared for Q2 2022, total fleet of 90,000 cars. I'd like to highlight the increase of total occupancy, raising 6 percentage points year-on-year, 70.7%, which shows a positive reflect in operating improvement and the use of capital invested. In Fleet Management and Outsourcing, we continue with our plan to grow and close the second quarter 2023 with 114,000 cars, increase of 16% in the operating fleet against the second quarter 2022, and already 56% of the company's total fleet. Important to highlight is that the marginal growth is being done with diligence to ensure profitability of new investments. In used cars, we kept a high level of sales, about 19,000 cars sold in the quarter.
We continue to sell cars with higher tickets, especially in the Rent-a-Car segment, about BRL 70,000 car per car, which led us to reach BRL 1.2 billion in the quarter. The highlight was the margin of used cars, that had an extension of 7.7% versus 5.9% in the first quarter. This is very important, that shows that the value of our fixed asset is correct and that we are close to the turning point to reduce depreciation rate. Now I'm going to slide four, where I bring work streams that are a priority for the company to generate value and discipline and execution and delivery so far.
Starting with financial management, which is an important focus, we prepaid BRL 3.3 billion in the quarter-- in the half year, BRL 1.9 billion in the second quarter, by buying back local debt and bonds issued abroad, significantly reducing the cost of debt and cash carry-on. We also had a reduction of BRL 1.3 billion in the supplier line compared to December 2022, with our equity balance sheet even more sustainable. It's important to highlight that we kept robust cash position of BRL 2.6 billion, which places us in an extremely comfortable position to continue executing our strategic plans. As a second point that is core for this strategy, we have an improved efficiency in our fleet, reducing more than 8,000 car in the Rent-a-Car operations this quarter compared to the first quarter, while our net revenue EBITDA grew compared to the previous year.
This is fruit of best operating efficiency based on a detailed analysis of our fleet, releasing BRL 1.7 billion in capital invested. The third highlight is related to efficiency and productivity. We had substantial gain of 6 percentage points in the Rent-a-Car total occupancy compared to the second quarter 2022, with 70.7% through operating improvements, focus on the asset turnover that I'm going to talk about later on. This is very important to maximize capital invested and create value. I believe that still have room to improve this indicator for the coming quarters. The fourth highlight is improvements in management. We have our teams focused on deliver priority projects we listed in the beginning of the year. We had a quick advance and we already delivered eight projects of the 19 selected.
In addition, we had some adjustments in our structure, reducing costs and making the company management even more objective. On slide five, I give you some details on the gains of efficiency in asset turnover. As you can see in the first chart, we had a reduction of 8,900 cars in total fleet, and the operational fleet reduced by 3,800 cars, releasing capital invested that was not being compensated. The reduction is 100% related to the resizing of our RAC fleet, with an acceleration in the volume of sales, reducing 8,000 cars in the total fleet. With that, we had a relevant evolution of 6 percentage points in total occupancy rate, measured by rented fleet over total fleet compared to the second quarter 2022.
That is, we are being more productive compared to the capital invested, which is crucial for us to get to a new level of profitability. As for Fleet Management and Outsourcing, we continue growing with discipline and discipline in the closing of contracts in the long term to ensure future profitability. You can see that we had growth in the operating fleet, we closed with a record volume of cars in backlog for the purchase of OEM. That happened because we held the negotiation of purchase of cars until the end of the government incentive program to be sure of the prices and ensure marginal profitability. Now I'm going to turn to slide number 6. It is very clear to us that our largest gap to ensure value in the Rent-a-Car segment is related to the asset turnover.
Here we give you a breakdown of the three most important indicators and their evolution. We're able to improve in the quarter 13 days in asset turnover, with the implementation from 31 to 23, and retirement from 19 to 14 days. We believe we are going to get optimization between 25 and 30 days, consider all initiatives we have ongoing, as you can see in the above chart. This way, this pillar that is crucial to generate, to create value, contributes to the business transforming margin of profitability. Slide 7. As in the first quarter, we brought an important analysis to change the level of profitability that the change of part of the Rent-a-Car fleet mix.
In the first chart, you can see we had a spread of BRL 1,500 per car between purchase and sales price, with a favorable dynamics for cash flow and for a new cycle of profitability. In fleet management, the dynamics is completely different, since the asset cycle is based on long-term contract. This new level of prices is beneficial because it will bring even higher growth in revenues and EBITDA. The bottom chart shows the difference between purchase and sale price consolidated. That was BRL 26.2 thousand in the GTF segment. Still, when you take to a look at liquid CapEx, once again, we had negative CapEx this quarter, more than BRL 700 million in the year, contributing to our commitment to generate value.
On slide 8, we bring you details and improvement of the fleet mix of the second half of the year and the reflect of that in marginal profitability. We closed 2022 with an average ticket of BRL 85,000 per car and went down to BRL 83,000 in June. We believe that until the end of the year, we are going to go down to BRL 78,000 to get to an ideal mix, and that will bring three major benefits. First, we are going to have positive cash generation, selling cars with a higher ticket and buying cars with a lower ticket.
Second, reduction of 8% in the fleet's average ticket will bring an increase to the marginal yield, because our fleet is going to be more aligned with the booking and more compatible to the revenue generated, also reduction in depreciation and maintenance costs with cars with lower tickets. On slide 9, we show the financial results consolidated. Net revenues in the quarter was BRL 2.5 billion, evolution of 11% compared to the second quarter 2022, and 25% compared to the first quarter last year. EBITDA reached BRL 890 million in the quarter and BRL 1.7 billion in the first half of the year. I'd like to highlight the expansion of revenues and rental EBITDA, that grew 23% and 13% respectively. The expansion of the resulting services brings more predictability and resilience for the company's future results.
The base was BRL 501 million in the quarter, BRL 986 million in the half year. Here we can see the effect of the increase in depreciation rate from 5% to 10% per year that we had in the end of last year, and the potential of better results with an eventual reduction in this rate. I'd like to draw your attention for the contribution of GTF, 64% of the rental EBITDA in the quarter, compared to 45% in the first half year of last year. This is very relevant for profitability indicators, in addition to bringing more stability and predictability to future results. Finally, I'd like to mention that we have neutral profits in the quarter, but we are committed to delivering the necessary changes. I'm going to go on to slide number 10, with analysis of depreciation.
Here you can see the evolution of depreciation rates in the Rent-a-Car and GTF. As you can see, depreciation in the Rent-a-Car was stable, 10.3% compared to the previous two quarters. With that, we believe we probably got to the end of the increased cycle caused by the transition of the fleet, and certainly will have a reduction soon because of better purchases in the marginal fleet. You can also see a slight improvement in the reduction of 4% in the depreciation rate.
Again, fruit of an improved mix. In the second chart, we see GTF with a slight increase because of new cars that do not have the gain that we had in the global industry in recent years. I see no concern. Quite the opposite, we are growing the fleet with even better returns. Consolidated, we had 8.4%, an increase of 0.3 percentage points compared to the fourth quarter, due to the larger share of GTF in our total mix. I'm going to turn to Camila, our IR officer, to present our business units. Camila?
Thanks, Gustavo. Good morning, everyone. Well, now I'm going to talk about the results per business line. Starts with slide 12 in the Rent-a-Car with our operating highlights. The priority of the segment for the quarter continues to be fleet optimization, increasing our marginal profitability. We had, again, a decrease of fleet this quarter, getting at 90,000 cars, a drop of 10% year-on-year. In the same period, we had a 3% increase in the operating fleet, proving our gains in efficiency.
Daily rates reached BRL 123, a 7% increase year-over-year. A slight decrease of 2% compared to the first quarter with high seasonality. In the bottom part of the slide, we have the evolution of our total occupancy indicators. We continue to see an important gain of productivity in total occupancy rates, our main indicator. The evolution was 6 percentage points compared to the Q2 2022, reaching 70.7% compared to the first quarter 2023, expansion of 1.4 percentage points. Operating occupancy rates was stable in the period. Now, on slide 13, we show the financial highlights for the Rent-a-Car segment. Net revenue, BRL 676 million in the Q2 2023, growth of 15% year-over-year. In the first half year, growth was 21%, reaching BRL 1.4 billion.
Growth in those periods show the new operating scale of the company as a result of the transformation of our tickets and optimization of pricing in the different categories of the segment. As a result, revenue per car followed the increase, showing growth of more than 10%, both in the quarter and in the half year. EBITDA in the second quarter was BRL 382 million, practically in line last year. In the half year, we had growth of 7%, reaching BRL 809 million. On slide 15, we bring the operating indicators for Fleet Management and Outsourcing, that is our long-term product. First chart, total fleet, 113,700 cars in June 2023, 7% up year-on-year, and a slight drop compared to the first quarter, as we mentioned before.
It's important to highlight that as in the Rent-a-Car, there was even more expansion in operating fleet, 16% quarter-on-quarter, showing better use of capital invested and generating a volume of daily rates of BRL 9.1 billion in the quarter. Our revenue backlog is BRL 3.3 billion, 40% above last year, and 26% quarter-on-quarter. On slide 16, we have the financial indicators of GTF. We continue accelerating expansion. Net revenue reaching BRL 558 million in the Q223, an increase of 34% compared to the Q222. In the half-year, we had BRL 1.1 billion, 38% year-on-year growth.
In addition to an increase in volumes, we had substantial increase in revenue per car, 16% in the quarter and 21% in the half year, reaching in the second quarter 2023, an average of BRL 2,110 per month. EBITDA in the second quarter was BRL 412 million, extension of 31% compared to the second quarter 2022. In the half year, BRL 773 million, 28% year-on-year. Comparisons of EBITDA per car in the final chart also show evolution. The strategy is to continue with accelerated growth in GTF, in revenue EBITDA, with more resilience and predictability to consolidated results. Used car sales, on slide 18, we show the main highlights of operation. In the quarter, we had a 2% increase in the volume of cars sold, with stable sales at 19,000 cars.
In the half year, growth was 14%. Net revenue in used car sales had light growth in the quarter, BRL 1.2 billion, extension of 23% on the half year, with a total of BRL 2.7 billion. The results of the half year was impacted by the sale of the mix with a higher impact, with a higher ticket. The EBITDA margin of 7.7% in the quarter shows the conservative policy we have in depreciation rates. The drop compared in the half year is expected due to the normalization within the market that was atypical in 2022. We opened four new points of sale in the second quarter that will contribute to better performance, with now 94 stores in the end of June. Now I'm going to turn to Pedro to continue the presentation.
Thank you. Thanks, Camila. We are going to slide 20, where I talk about our capital structure. I start highlighting the reduction of BRL 3.7 billion in net growth, in gross debt this quarter, going from 17 to BRL 14 billion in the Q2 this year, mainly due to the prepayment of local debt and bonds abroad. We had a reduction in the purchase of cars, so we decreased the supplier line by BRL 1.3 billion. We had a reduction of more than BRL 700 million when we add the net debt and the supplier line compared to the Q4 last year. This effort was important to keep leverage stable in a healthy level of 2.9x net debt EBITDA ratio. On slide 21, we have our cash and our debt maturity schedule.
We have a very strong cash position, BRL 2.6 billion in June 2023, enough to cover our debt until mid-2025. As you can see in this chart, the prepayment of debt we had of BRL 3.3 billion in the quarter, was also taking into consideration the improvement of the debt maturity profile, eliminating the maturity of the next two years, leaving the company extremely well-positioned. In addition, the lower level of cash also brings a reduction in carrying costs, with the additional positive impact in the company net revenues. The initiative of prepaying debt is not only because we were prepaying more expensive debt, but also accessing new sources of funding at much better costs.
Here, we show the new funding of the company in this new phase with extremely favorable conditions, which will enable us to increase our spread between the return and cost of capital and generate value to our shareholders. So far, we have already negotiated BRL 1.4 billion in new funding with an average cost of CDI plus 1.72%. Prepaid debt has an approximate cost of 140% of the CDI. Before turning back to Moscatelli, I'd like to close saying that it is a pleasure to be here with you for the first time in the presentation, and that I'm here for any questions that you might have in the future. Now I turn back to Moscatelli to close the presentation.
Thanks, Pedro. Well, finally, on slide 22, we summarize some of the deliveries in the first half year and ongoing initiatives. As I mentioned, we had substantial advances until June. Here we bring the main items commented in the presentation. In the bottom part, we have a series of ongoing initiatives to improve the company, which will have a positive impact in our profitability, including the continuous adjustment of rental car fleet, operational efficiency, optimizing the use of assets in all cycles of the business, selectivity in new long-term contracts, continually reducing the average cost of debt, control and management tools using technology to continuously improving our management.
To close, I only would like to reinforce that I am confident we are on the right track. With discipline and agility in the execution of our plans, we'll be ready for a new cycle of growth and creation of value. Now I'm going to open your questions. Then I'll come back for my final remarks. Thank you very much.
Ladies and gentlemen, we'll now start the Q&A session. To ask a question, please press star one. To withdraw your question from the list, press star two. Our first question comes from Victor Mizusaki from Bradesco BBI.
Hello. Thanks, and congratulations on your results. I have two questions. The first, if you could talk a bit, when you take a look at the second quarter, if you think of the Rent-a-Car stores and fleet, we do see a reduction in the ratio. My first question is if we should expect any change in the strategy of sorts for Movida in the future? Second question, particularly on slide six, we see a significant improvement in the three indicators: time, implementation, retirement, and the rates being better.
What should we think in terms of implementation times? Are you talking about, I don't know, an improvement of almost a month in the improvement of revenues, and then thinking of how long this is going to be capped in Movida's fleet? Are you going to get it better or not? Perhaps in the end of the turnaround process, Movida can sell even newer cars. What are your thoughts on that line?
Hi, Victor. Good morning, and thanks for your questions. I'm going to start with the source that you asked. We made adjustments in the Rent-a-Car fleet that had already been expected. We had to an advancement of purchases in the end of last year, so we had a bigger fleet than our store structure. We just wanted to size the fleet right. That does not mean we are not considering the profitability of each store, just to make sure that they all have to be there.
This is ongoing work, not only for now, but it's a new business model to take a look at things in granularity. We are looking into that, and we will continue to try to extract the most value in each operation. The second point that you mentioned, it is the turnover of our assets. This is something we have been talking a lot, and it's certainly the higher leverage that we have in the Rent-a-Car profitability today. As you see, we are very much focused, and by the end of the year, we are going to complete all improvements we have mapped to get close to 25-30 days, as I mentioned in the presentation.
Now, this is not the single factor that will tell us whether we are going to extend the life of our assets or not. Together with the purchase of assets, we are going to make decisions whether we are going to keep cars that are younger or older in the fleet. It's a combo of those. To give you a bit more color, in addition to these operating efficiencies that are very clear, purchase conditions are much better with the OEM in the last six months, and that make us believe that fleets are not going to be at 14 months old. Probably, they are going to be more back to normal between 12 and 13 months.
Okay, thank you very much.
Our next question comes from Lucas Esteves, from Santander. Good morning, Moscatelli, Pedro, Camila.
Thanks for taking my questions. I have two. First, I'd like to understand a bit more the variation of costs, 32% in the Rent-a-Car and a drop in GTF in the period. Another thing I would like to understand is this drop of SG&A in used car sales. We see more stores and expenses going down in the period. Could you give me a bit more color on that?
Thank you. Hi, Lucas. Good morning. Thanks for your question. We have been talking a while now about our focus on growing Fleet Management and Outsourcing, and the benefits that we believe this will bring to the company. We already expected and continue to expect that the GTF profitability will grow marginally. One, because of the marginal growth, and we are having a lot more diligence in contract profitability, but also because of dilution of fixed costs and expenses.
I think that these are the main factors for the margin of GTF to go up. I believe it should behave between 76%-75% in the coming quarters, and from now on, this is the margin I think you're going to be seeing in the segment. In the used car sales or Seminovos, we had a lower average ticket, and that influences in the variable expenses. That's perhaps why you saw expenses in the segment going up. In the Seminovos, look, I think what's most important is the margin and the sale benefit, which grew in the quarter more than 7%, compared to 5.9% in the previous quarter.
Showing that we have a correct store structure with the volume that we have of almost 20,000 cars in the quarter, and the depreciation of assets that are coherent with market prices, which makes us believe that we've reached an inflection point in depreciation rates. We were at more than 10% for three consecutive quarters, which is very high. I don't know if I could answer your questions. If not, please just ask.
No, it's very clear. Thanks very much for your answers.
Our next question comes from Lucas Martelli, from BTG. Hi, everyone. Thanks for the call.
Good morning. Two questions as well. First, Moscatelli, is almost a follow-up of the previous question. I'd like to understand the improvement of margin in the used car sales. Is it more related to the mix? You did explain that on the slides, than the depreciation policy of previous quarters. Should we expect this level of 6, 7 for the coming quarters? If you could just give us a bit more color in this topic, that would be helpful. Second, I was curious about slide 4, in the management initiatives. I understood fleet profitability, what differences do you have in terms of management? It said 8 of the 19 projects were delivered. What is still to be expected? What kind of initiatives like that? Just for us to understand what's to come. Thank you very much.
Hi, Lucas. Thanks. Good morning, for your questions. Starting with the used car margin. The margin in the quarter went up, as I mentioned, from 5.9 to 7.7. Given the depreciation level we have in assets today, especially in the Rent-a-Car, I see it in the short period, perhaps in the next two quarters, between 5.5 and 7. Very close to the first and second quarter this year. Why is that? Because we've been with 10.3% depreciation rates for almost a year, much higher than historical numbers for the segment.
W-we created that difference, that translates in the margins, but that's what I expect for the next two quarters. As for management actions, as you mentioned, we listed in the beginning of the year, 19 projects. We already delivered eight of them. These are projects that go from business granularity, billing that is more automated, reduce headcounts, very operating things, but also structural things. As for example, our project for GTF pricing that we closed this quarter, that will bring more confidence in marginal investment, but also scalability and speed in the closing of deals.
These are the main projects that we delivered in the first half year. In the second half year, we have two major projects. One, it is rental car pricing. It's a huge project that will last until the end of the year. Another project that we call optimal asset cycle, which is to have profitability step by step per car, to know the right moment to retire the car and extract maximum value. The granularity of management is huge and demands technology for us to make it a management tool. I think this was the bit of color that you needed for the two main projects.
Excellent. Thank you very much, and I wish you all a good day.
Thank you.
Our next question comes from Daniele Gasparetti, from Itaú BBA.
Hello, good morning, everyone. My question is more related to fleet management and also I think we're very well impressed with the backlog evolution that you showed. I would like to understand how you see the evolution for the coming quarters, the competitive environment, that's it.
Hi, Gasparetti, this is Moscatelli. Good morning. Thanks for your question. Well, we are very much excited because we see strong demand in the segment. Our strategy has been very much focused on mid-sized customers, not only large customers, because we see marginal profitability is not as good. We're thinking of mid-sized customers, and I think this is the right strategy. You talked about revenue backlog, I would also like to reinforce the backlog of cars in the end of the quarter.
W- we had already closed, because of the government plan, we delayed the purchase. It's 11,000 cars, a significant volume. What I can share y- with you is that July was one of the best months of the year in Fleet Management. It is a growing curve with profitability between 73-75, and marginal ROIC also going up. This is a segment that is going to have a higher share in consolidated. Today, it's more than 64% of the operating income, it tends to keep or grow in the coming quarters.
Thank you. If you allow me, Moscatelli, in liability management, anything else that you can see, any benefit you can extract in the short term?
Yes, Gasparetti. In July, we bought back a debt of CDI + 300 bps. We announced a second tender, we also renegotiated three swaps that we had, that were tagged in CDI, and we went back to IPCA, which was the original index of this operation, which should bring significant gains in the third quarter. These are things that are already public, that are already completed, and I'm just sharing with you.
Excellent, congratulations once again.
Thank you.
Our next question comes from Pedro Bruno, from XP Investments.
Good morning. Well, first, congratulations for the consistency and transparency in the recovery of results. I have two questions. One, a follow-up of two questions that were asked about depreciation and Seminovos margin. I'd just like to take a step further for me to understand, thinking as of 2024, Moscatelli, you mentioned that you're close to a turning point in the reduction of depreciation after three quarters, above 10%, and with a recent increase in the fleet.
I understand that we will gradually see, and correct me if I'm wrong, the depreciation rate going down, perhaps as of the third quarter. I would like to know, what level do you see for the Rent-a-Car and Fleet Management as percentage of the asset in terms of depreciation, looking at 2024 onwards, so whatever period of time you consider it to be stable? How does it compare to used car margins that you already talked about, so what you expect for the second half year, but what would it be like in terms of depreciation for the future? This is my first question. I'll ask you my second question next.
Hi, Pedro. Good morning. Thanks for your question. Okay. Depreciation rates. As you mentioned, we are at 10.3% in the Rent-a-Car for three consecutive quarters. I'm very confident, and to me, it's very clear that now we are in a descending curve. That doesn't mean that we are going to get there to the third quarter, but I think this is the trend, and we are going to take a look, and we think it is the point in time we are going to act. In the midterm, the depreciation rate should be between 7%-8% a year, a margin in our model of 2% in the sale of assets.
This is what I see for perhaps 2025, the space of depreciation in the Seminovos margin. In fleet management, the depreciation rate should be between 6 and 7, more towards 6 than 7, but again, between 6 and 7, with a sale with a 2% margin in the end of the cycle. This is how we see depreciation rates for the two business when normalized.
Okay, perfect. About the initiatives, you did talk about three of the major initiatives, the financial, fleet reduction and management. In fleet, first I would like to understand or confirm my understanding that the reduction of fleet that you had in the first half of the year in the Rent-a-Car segment is ended, we should expect a more stable fleet until the end of the year, and perhaps, I don't know, resume growth as of next year. Is this a correct understanding when you think of your fleet sizing strategy? Also, one more point, when do you think the process of sizing demand vis-a-vis the fleet mix, where are you in this process, and when will the have a structural impact in the results? Is it for the year and 2024, everything is already stabilized or not?
Pedro, let's start with the fleet resizing. We do not expect to downsize the fleet further, except for a specific move. You should not expect any downsizing because we believe we got to the right size vis-a-vis our demand. That's the first point. As for the changing mix, in the first half of the year, we started, but most of it is going to be for the second half, which will enable us to reduce average tickets of, by now, almost 8% in the end of the year.
Together with the other improvements, we expect to complete everything by the end of the second half and start 2024 with the right mix, with operations that ready to seize any potential growth and with a capital structure and funding cost that is comparable to the company. We are very much disciplined and focused in this year to solve these problems in value creation, improve ROIC with all the operating changes, and reduce cost of capital by reducing our debt. With that, we are going to have a satisfactory spread, and we'll create value to shareholders. That's how I see things until the end of the year.
Thank you very much. Very clear.
Our next question comes from Guilherme Mendes, from JP Morgan.
Good morning, Moscatelli, Pedro, Camila. Thanks for the opportunity. I have two questions. First is the Rent-a-Car business. I'd like to understand the demand by segment, where you see more potential to grow. We talked a lot about fleet margins, used car margins, but I would like you to talk about the Rent-a-Car margin, which perhaps was the most negative surprise in the quarter, if there was anything in cost allocation, and also OEMs. Gustavo, you talked about better purchase conditions now. What do you mean? Is it payment terms? Is it discount, mix? I would like to understand a bit the purchase dynamics.
Hi, Guilherme. Thanks for your questions. I'm going to start with the Rent-a-Car business. We see a change that is important in the buildup of revenues and results. Today, in our revenue portfolio, we have 64% connected to monthly rental, which brings more stability even to the Rent-a-Car business, which is more volatile. We see more stability, more reliability in the segment. Individuals are still very much pressured by the macroeconomics of the country. I think we might have a better macroeconomic scenario in the next quarter and half year, and things are going to be better.
In a nutshell, this is how I see the Rent-a-Car business. In terms of margins, we are making structural adjustments in the segment in terms of management, capital allocation, and it's just natural that we have a volatility in the margin of the segment. If you take a look at the marginal margin that we expect for the Rent-a-Car, is between 60 and 62. We reported 56. I clearly see with everything that we are doing, to go back to close to 60 or a bit above that. This is what I see for the Rent-a-Car segment.
As for OEMs, I mentioned in the beginning that things changed dramatically from the end of last year to today. They are a lot better, not only in terms of discounts, but also in terms of payment terms. I think that we are already reaching pre-pandemic levels, with all the improvements that we reported and that we are working on until the end of the year. Together with better terms from OEMs, I think the companies today, today and as of 2024, is going to be very different, with the correct mix, lower depreciation, and terms that will bring us a higher return on invested capital. This is how I see commercial conditions also for the future.
Very clear, Moscatelli. Thank you, have a good day.
You, too.
Our next question comes from Rogério Araújo from Bank of America.
Hello, good morning, everyone, Moscatelli, Pedro, Camila. Thanks for the opportunity. I have two questions. With regards to expenses and maintenance with vehicles. This is a cost that was about 28%-29% of revenue, and now it is 20%-21%. You had relevant gains in margin in the rental car business because of this line. I'd like to understand the breakdown of this. Is it most services, maintenance? What explains this drop compared to previous year? Is it sustainable? What is the driver for that, and what should we expect from now on? My second question is the bonds that you were buying back. I just would like to understand if your expectation is that you are going to complete the process by the end of the year, and also by closing all swaps. Thank you very much.
Hi, Rogério, good morning. Thanks for your questions. Okay, service, maintenance, repair costs, especially in the rental car segment, we will continue to see the cost per car going down as we are moving from cars with higher tickets that have higher service rates to cars with lower tickets. As a counterpart, the cost is higher because we went from a fleet that was 10 months old to a fleet that is 14 months old. We expected this cost to go up in the rental car.
Once again, I think this is a transient status, and we are going to see some volatility in some lines of the segment. As of the beginning of next year, I think we are going to go back to normal, and probably we are going to have a one-off effect in our budget. The bonds, we have BRL 460 outstanding. We also announced the sale. We are successful. The bond is going to be irrelevant compared to the total cost of the debt of company, and if we can buy back everything, we will. Knowing the market as I know, I think it's very difficult to be able to buy back 100%. We are watching out for opportunities of buyback, and that's what we, we are going to do, as I mentioned.
It's important to remember that the bond was $800 million, and it is already reduced by half. From now onwards, I think we are going to have marginal gains on this line, although all benefit of the buyback is just started to be seeing the financial results. Just to close, Rogério, as important as buying back bonds and other debt, is marginal raising of credit with good cost. See, we are now at a cost of the 1.7 spread over the CDI. A completely new level of debt, and that will give us a good stretch for our return on invested capital and will create value.
Thanks, Moscatelli. If I could, just a follow-up. In the bonds, whatever you're going to keep, with the bonds, are you going to keep with the swap as well, first? Second, in terms of service costs, maintenance costs, you talked about volatility that should go back to normal. Should we expect the normal between 21 and 29, or is it close to what 28, 29, or is this close to what you're having now?
Okay. Bonds. The assumption and the policy that we have is not to be exposed to foreign currency. Whatever we can do in terms of raising funds in dollars, we are going to have a 100% hedge in reais as we update the buybacks. If we have an opportunity to reduce the swap, capturing the gains that we have in the buyback, we will. The policy is to keep 100% hedge in any currency other than the real.
As for service costs, the percentage depends on several things. We are going through a new cycle, a new mix, the fleet is practically all new. I think the best way is perhaps to meet with the IR team, and we are going to give you more details of how we see the behavior by groups of cars, so that you can have a better idea of what we expect for the future.
Excellent. Thank you very much, and have a good day.
You too.
Our next question comes from Pedro Pimenta from EQI.
Hi, Moscatelli, Camila, Pedro. Congratulations on your results. I have two questions that you already mentioned during the presentation. I would like to explore the better conditions, the better terms with OEMs, and also talk a bit about your capital expenditure. We see that OEMs are not going back to the pre-incentives, government incentive prices. They are keeping lower prices. Is that a reality? Do you think this is to be kept until the end of the year?
How does that reflect on your capital expenditure? Do you see a possibility to increase that? You kind of break down acceleration. Do you think that with the discounts to be kept in the market, can you change your projections for CapEx for the future? Second, question, we saw a drop in the Rent-a-Car depreciation rate. You reduced the size of fleet, which releases a bit of, of your capital invested. Since last quarter, we saw a decrease in expenses with interest rates, but when we take a look at the spread of the return on invested capital, this is not captured yet. When do you think this is going to increase? Is it still in 2023? Do you think 6-7 percentage points is doable?
Hi, Pedro. Good morning. Thanks for your questions. I'll try to answer them all, and if I forget something, just let me know. Okay. Mix, as you mentioned, most of the effort of the first half year was about trying to release capital invested, taking a look at the whole of the fleet. That is, resizing the total number of cars. From now onwards, until the end of the second half of the year, the idea is to capture the ideal mix vis-a-vis the demand that we have, group by group, in the Rent-a-Car segment.
Y ou're going to see that we are continually releasing capital invested, but by the changing mix, selling more expensive cars, buying cheaper cars, more than the government plan per se. This is the first. As for spread, I see the company working between 4 and 5 percentage points, and I think you should see this trend as of the first quarter next year. I'm not saying that we are going to have the stretch, but you're going to see the company towards those directions when all the improvements have been implemented in the company.
Thank you very much.
If there are no further questions, I'm going to turn the call back to Gustavo Moscatelli, the company's CEO, for his final remarks. Please, Mr. Moscatelli.
Well, everyone, thanks for joining us today in another conference call to release our earnings. Once again, I'd like to thank Movida's team, almost 6,000 employees, that are fully dedicated, with discipline and commitment with this new agenda of value creation. Thank you, all Movida employees. Also, I'd like to thank the market as a whole, shareholders, board of directors, people on the sell side that have supported us and sometimes bring us an outside view that we don't have from this side.
Thank you. As CEO of the company, I am extremely pleased and motivated because I see the company going to a completely different level as we started last year. This is a company that is much more controlled than it was in the past. Management is much stricter, much more detailed in the making of decision. Financial indicators always there for us to be certain of the marginal investment. Personally, I'm very pleased and very motivated with what is to come. Thank you, and see you next quarter.
Thank you. Movida's conference call is now closed. We thank you very much for joining me now, and please disconnect your lines. Have a good day.