Insolvency Trustee

Statistics of cases in which KPMG operated from 2010 to January 2018

www.kpmg.com.br Reorganization Bankruptcy Cases Number of Reorganization Bankruptcy proceedings

KPMG, since 2010, has operated as insolvency trustee. We decided to prepare the statistical analysis for the period from 2010 to January 2018, assessing what occurred with all the reorganization bankruptcy proceedings in which we operated as insolvency trustees. In this period, we operated in 62 reorganization bankruptcy proceedings: 14% of these proceedings have already been closed and 34% are being complied with the plan, that is, paying according tográ co the ratified 1 plan. There are 27 reorganization bankruptcyQtdade de proceedings nomeações which are still in a phase before the plan is approved and ratified. 8% of total reorganization bankruptcy proceedings in which we operated as insolvency trustees in the period were converted into bankruptcy.

Phases prior to the Compliance with Ratified Payment Plan

Phase of Compliance with Ratified Payment Plan

Reorganization Bankruptcy converted into Bankruptcy 8

Reorganization Bankruptcy closed 11

Reorganization Bankruptcy closed No solution of merits Active joinder

In our surveys, we noticed that, of the cases in which we operate, 34% of the reorganization bankruptcy requests refer to active joinder. In these cases, the judge of the proceeding accepted the request of joinder in 86% of the cases and, within this percentage, in only one case theregrá co was 2 presentation of an individual payment plan and consequentlyLitisconsórcio creditors Ativo meetings held separately.

2 Individual Payment Plan

8 Grant to all

Active joinder Term of the proceedings

• During the analysis of the survey, we assessed the • The seven reorganization bankruptcy proceedings terms and noticed that the average term of grant for closed presented an average term of 39 months the reorganization bankruptcy request was 44 days. between the approval of the plan and the closing of At this average, we excluded three cases that did not the proceeding. comply with the rule, since the grant took more than • We noticed that the extension of stay-period within 360 days. the analysis period was approved only in 53% of the • As to the General Creditors’ Meeting (“GCM”), proceedings. we noticed that the average realization was three GCMs, and the maximum was eight GCMs and the minimum was one GCM. • We noticed that between the payment plan grant and homologation, an average term of 20 months had elapsed. Two reorganization bankruptcy proceedings had some GCM after the approval of the plan.

3 Classes of creditors

When we compared the reorganization bankruptcy proceedings in which we operated as insolvency trustee under the concept Classes of creditors, we observedgrá co that4 the majority, 24%, is comprised of ClassesClasses I, III and IV, followed by the complete group of Classes, representing 21%.

2 The creditors’ list was not presented

Debts in the Classes: III 21 21% Debts in the Classes: I/II/III/IV

1 Debts in the Classes: I/III

2 Debts in the Classes: II/III/IV Debts in the Classes: III/IV

1 Debts in the Classes: II/III

2 Debts in the Classes: I/III/IV

1 Debts in the Classes: I/II/III Classes 2 The creditors’ list was not presented

Debt in one Class 21 Debt in four Classes 2 The creditors’ list was not presented

Debt in one Class 21 Debt in four Classes

2 Debt in two Classes 2 Debt in two Classes

2 Debt in three Classes 2 Debt in three Classes Number of Classes I - creditors derived from the labor legislation or from occupationalin debt accidents. II - creditors with real guarantee. III - creditors of unsecured credits. IV - creditors qualified as microbusiness or small-sized business. I - creditors derived from the labor legislation or from occupational accidents. II - creditors with real guarantee. III - creditors of unsecured credits. IV - creditors qualified as microbusiness or small-sized business. grá co 6 Cidades com nomeação (qtdade)

18 São Paulo 10 São Bernardo do Campo Araraquara Barueri Cajamar São Carlos Tatuí Bragança Paulista Espírito Santo do Pinhal Nazaré Paulista Ourinhos Paulínia Rio de Janeiro Appointments per city Santa Cruz do Rio Pardo grá co 6 Cidades com nomeação (qtdade) Três Rios

18 São Paulo 2 Campinas 10 São Bernardo do Campo Araraquara Barueri 2 Guarulhos Cajamar São Carlos 2 Itajubá Tatuí Bragança Paulista 2 Jaú Espírito Santo do Pinhal Nazaré Paulista Ourinhos 2 Nova Odessa Paulínia Rio de Janeiro 2 Pindamonhangaba Santa Cruz do Rio Pardo Três Rios 2 Campinas 2 Porto Feliz 2 Guarulhos 2 Itajubá 2 Santa Maria de Jetibá grá co 6 2 Jaú Cidades com nomeação (qtdade) 2 Nova Odessa 2 Santo André 18 São Paulo 2 Pindamonhangaba 10 São Bernardo do Campo Araraquara 2 Porto Feliz Barueri 2 Santos Cajamar 2 Santa Maria de Jetibá São Carlos 2 Santo André Tatuí Bragança Paulista 2 Santos 2 São Caetano do Sul Espírito Santo do Pinhal 2 São Caetano do Sul Nazaré Paulista Ourinhos 2 São José dos Pinhais Paulínia 2 São José dos Pinhais Rio de Janeiro 2 Sorocaba Santa Cruz do Rio Pardo 2 Vinhedo Três Rios 2 Campinas 2 Sorocaba 2 Guarulhos 2 Itajubá 2 Jaú 2 Vinhedo 2 Nova Odessa 2 Pindamonhangaba 2 Porto Feliz 2 Santa Maria de Jetibá 2 Santo André 2 Santos 2 São Caetano do Sul 2 São José dos Pinhais 2 Sorocaba 2 Vinhedo

5 Sector of activity of the clients

The highest concentration of clients is in the industry sector, followed by trading and renderinggrá co of 7 services. Ramo

15% Trade

3% Construction

3% Distributor

2% Sundry

52% Industry

2% Shipyard

3% Agribusiness

6% Oil & gas

2% Industrial Assembly

13% Rendering of services Terms of Ratified Payment Plans

When analyzing the Ratified Payment Plans (“RPP”), cases we worked on, the average of discounts also has we noticed that the highest average grace period the highest index in class III, which is 48%, and the isgrá co for class 8 III, of 19 months, and the highest is 60 highest discount identified is 80%. monthsPlano deand Recuperação the lowest is Judicialone month. Among the

Class I Class II Class III Class I

Average - Grace period (months) 6 18 19 12 Average - Discount 7% 43% 48% 23% Average – Payment Term (years) 1 9 9 4 Restatement Index – Higher Levy TJ/SP TR TR TR Average – Interest Rate - 2% 2% 2%

RPP not presented 10 Ye s

2 Pending Finance approval of RPP

No Among 62 plans, 34 have already been evaluated and approved at creditors meetings. Out of these plans, RPP not presented six included the sale of UPI and one included financial 10 Ye s contribution through DIP Financing. The existence of partner creditor occurred in 11 court-ordered reorganizations. 2 Pending grá co 9 grá co 9 approval of RPP Sale of UPI DIPDeep Financing Finance Credor Parceiro RPP not presented 10 Ye s

No

2 Pending approval of RPP 2%Ye s 98%No 18%Ye s 26%No

grá co 9 grá co 9 Deep Finance PartnerCredor Creditor Parceiro No

2%Ye s 98%No 18%Ye s 26%No grá co 9 grá co 9 7 Deep Finance Credor Parceiro

2%Ye s 98%No 18%Ye s 26%No Bankruptcy

KPMG, since 2010, has operated as insolvency trustee. proceedings. In 61% of these proceedings, we Therefore, we have decided to prepare the statistical were appointed in replacement for other insolvency analysis for the period from 2010 to January 2018, trustees and 31% of these proceedings are pending analyzing what occurred with all the bankruptcy under Decree Law No. 7661 / 45 (former Bankruptcy Falência proceedingsgrá co 1 in which we operated as insolvency and Composition Law). Out of the cases in which we trustee.Qtdade de In nomeações this period, we operated in 67 bankruptcy operated, 21% had already been closed.

ppointments ppointments under ankruptcy in eplacement the Former aw Proceedings Closed

31% Ye s 79% No

61%Ye s 39% No

69% No

21% Ye s Term of the proceedings

In our surveys, we noticed that out of the total bankruptcy proceedings in which we operated 19% were determined under the former decree and 81% already under the current law. 21% of the bankruptcy proceedings in which we operated have already been closed, and 79% of the proceedings were bankruptcy proceedings filed under the current law, that is, after 2005. On average, after KPMG being appointed as an insolvencyFalência trustee, the proceeding has taken two years tográ co be closed. 4 Qtdade de nomeações

19% Before de 2005 14 Ye s 21% Before de 2005 81% After 2005 53 No 79% After 2005

ear of Filing ankruptcy for ankruptcy Closures Proceedings Closed Disregard of legal entity Falência grá co 5 Among the bankruptcy proceedings in which we operated,Desconsideração we noticed that dain ten Pessoa proceedings Jurídica the legal entity was disregarded.

15% Yes

85% No

Disregard of legal entity

Auction resultsFalência grá co 6 In 10% of the bankruptcy proceedings,Leilão com there Resultado were Positivo auctions with positive results and 51% are pending conclusion. 10% 39% 51% S NON PNDING

9 Falência grá co 2 Cidades

19% São Paulo 13% Ribeirão Preto 9% Ipauçu 6% Itapira 4% Catanduva 4% Suzano 4% Ibaté 3% Campinas 3% Barueri 3% Barretos 3% Taquaritinga 3% Indaiatuba 3% Mogi Guaçu Appointments per city 1% Santo André

Falência 1% Guararema grá co 2 Cidades 1% São Carlos 19% São Paulo 13% Ribeirão Preto 1% Cascavel 9% Ipauçu 6% Itapira 4% Catanduva 1% Araraquara 4% Suzano 4% Ibaté 1% Nazaré Paulista 3% Campinas 3% Barueri 3% Barretos 1% São Bernardo do Campo 3% Taquaritinga 3% Indaiatuba 1% Paulínia 3% Mogi Guaçu 1% Santo André 1% Guararema 1% Guarulhos 1% São Carlos 1% Cascavel 1% Poá 1% Araraquara

Falência 1% Nazaré Paulista grá co 2 1% São Bernardo do Campo Cidades 1% Toledo

19% São Paulo 1% Paulínia 13% Ribeirão Preto 1% Guarulhos 9% Ipauçu 1% Curitiba 6% Itapira 1% Poá 4% Catanduva 1% Toledo 4% Suzano 4% Ibaté 1% Curitiba 1% Santa Cruz do Rio Pardo 3% Campinas 3% Barueri 1% Santa Cruz do Rio Pardo 3% Barretos 1% Jaú 3% Taquaritinga 1% Jaú 3% Indaiatuba 3% Mogi Guaçu 1% Santo André 1% Guararema 1% São Carlos 1% Cascavel 1% Araraquara 1% Nazaré Paulista 1% São Bernardo do Campo 1% Paulínia 1% Guarulhos 1% Poá 1% Toledo 1% Curitiba 1% Santa Cruz do Rio Pardo 1% Jaú Sector of activity of the clients

The highest concentration of bankruptcy proceedings inRamo which dewe operatedatuação is in industry and trade sectors. dos clientes

34% Industry

33% Trade

13% Services

7% Industry and trade

4% Center

4% Agribusiness

1% Commercial representation

1% Sundry

11 Talk to our team

Osana Mendonça Partner Phone: +55 (11) 3940-8338 Cellphone: +55 (11) 97545-7075 [email protected]

Camila Tebaldi Managing Partner Phone: +55 (11) 3940-3456 Cellphone: +55 (11) 95055-7216 [email protected]

www.kpmg.com.br

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© 2018 KPMG Corporate Finance, a Brazilian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Brazil. All information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor our best efforts to provide accurate and timely information, there is no assurance that said information is accurate on the date of receipt or will continue to be accurate in the future. Nobody should take actions based on this information without proper professional advisory after a detailed examination of a particular situation.