Adjuested Ebitda

The Company calculates the Adjusted EBITDA as the net income or loss before the net financial result, income tax and social contribution, depreciation and amortization, minority interest, and equity pick-up. Adjusted EBITDA is not a measure recognized neither the accounting practices adopted in Brazil, by IFRS, nor by USGAAP, and it does not represent cash flow for the periods indicated and should not be considered as an operating performance indicator nor as a substitute for cash flow as a way to measure liquidity. Adjusted EBITDA does not have a standard meaning and the Company‘s calculation of Adjusted EBITDA may not be comparable to the EBITDA or Adjusted EBITDA of other companies.

The Company‘s management believes that Adjusted EBITDA is an important indicator to analyze a Company‘s operational economic performance since it is not affected (i) by fluctuations in interest rates, (ii) by changes in the tax burden from income tax and social contribution, and (iii) by the levels of depreciation and amortization, and is commonly used by investors and market analysts.