Key Conclusions

 In this report we analyze the recent tax reform proposal submitted by the federal government and how it would affect each company under our coverage.

 In our view, the bill aims to reduce the tax burden on the middle class by lowering their effective income tax rate. To compensate for the resulting revenue loss, the government proposes taxing dividends and ending the interest-on-equity tax benefit, The Tax Reform: partially offset by a small reduction in corporate taxes.

 From a shareholder perspective, the reduction in corporate taxes would not be enough to offset the end of the interest-on-equity benefit and the new dividend taxes.

A Sector-Based View  We believe that high-dividend players are likely to suffer more and high-growth companies are likely to benefit the most. June 28, 2021  This debate is very complex, and we believe that there could be meaningful changes to the bill before it is put up for a vote.

1 Strategy Team

Marcelo Sa, CNPI Matheus Marques +55-11-3073-3011 +55-11-3073-3255 1 [email protected] matheus. [email protected] Initial Thoughts on the Second Phase of the Federal Government’s Tax Reform

 Last Friday, June 25, the federal government of sent to the lower house a bill that would significantly change income taxation for both companies and individuals. Among its more significant provisions are a new tax on dividends and the elimination of the interest-on-equity tax benefit. The content of the bill was not a big surprise, as most of the key points have already been mentioned in press reports. On May 26 we published a report entitled “Initial Thoughts on Tax Reform”, in which we discussed the potential implications of these changes for companies.

 Here are our key takeaways from last week’s proposal:

 The 5-pp corporate tax reduction was expected, as was the two-year transition period. The bill proposes cutting the income tax rate by 2.5 pp in 2022 and by an additional 2.5 pp in 2023, which would bring the base rate down to 20% for large companies (vs. the current rate of 25%).

 The proposal brought some bad news on dividend taxation: the tax rate would be 20%, at the top of the range of estimates (15%-20%).

 Ending the interest-on-equity tax benefit: this is not a big surprise, but the impact could still be very negative, particularly for Marcopolo, Vivo, Ambev and .

 The bill does not mention special regimes such as SUDAM/SUDENE and “lucro presumido”. Our understanding is that the effective tax rate would decline in both cases, as the income tax rate used as a reference would be 5% lower. Because the effective tax rate in both regimes would be much lower, the final effect would be very small.

 Lower income tax rate for individuals: the exemption threshold would increase from BRL 1,903.98/month to BRL 2,500/month (see Slide 7 for details)

 In our view, the bill aims to reduce the tax burden on the middle class by lowering their effective income tax rate. To compensate for the resulting revenue loss, the government proposes taxing dividends and ending the interest-on-equity tax benefit, partially offset by a small reduction in corporate taxes.

Effect on Tax Collection (BRL in Billions)*

 We ran a sensitivity analysis to estimate the potential impact on 2022-23 EPS and fair values of the end of the interest-on-equity tax benefit and the reduction in corporate taxes (see Appendix).

 Companies that will benefit the most: Oil & Gas, non-bank Financials, Tech.

 Companies that will suffer the most : Telecom (Vivo), Banks, Real Estate.

 We did not adjust our fair value calculations for the taxation of dividends, as this provision will not affect companies directly. In general, however, we believe that high-dividend players are likely to suffer more from this change and high-growth companies are likely to benefit the most.

 From a shareholder perspective, the reduction in corporate taxes would not be enough to offset the end of the interest-on-equity benefit and the new dividend taxes.

Source: Itaú BBA. * Based on media interview of government representatives after the announcement. 2 Sensitivity Analysis: Fair Value and EPS Impact by Sector

Average Impact on Fair Value

Average Impact on EPS 2023

Source: Itaú BBA 3 Sensitivity Analysis: Fair Value and EPS Impact by Company

Companies That Will Benefit the Most – Fair Value Change (%) Companies That Will Benefit the Most – EPS 2023 Change (%)

Companies That Will Suffer the Most – Fair Value Change (%) Companies That Will Suffer the Most – EPS 2023 Change (%)

Source: Itaú BBA 4 Dividend Taxation Will Hurt High-Dividend Players More

High-Dividend Players Div Avg Value Market Cap YE Div Yield Avg Div Value 2020 Div Yield YE Net Debt/LTM Ticker % in Ibovespa Last 24 Months 2020 BRL DPS YE 2020 Last 24 Months BRL Million 2020 EBITDA  We have listed the top high-dividend players, BRL Million Million taking into account the dividends paid on 2019- TAEE11 0.4% 7.85% 882 11,571 1,114.7 3.2 9.63% 1.6 20 earnings. VIVT3 0.9% 7.18% 5,992 78,524 7,033.2 4.2 8.96% 0.3  The new bill brought some bad news on ELET3 0.7% 7.18% 4,069 57,626 7,016.0 4.5 12.18% 2.5 dividend taxation: the tax rate would be 20%, ITSA4 2.2% 6.98% 7,764 100,422 5,522.3 0.6 5.50% 0.2 at the top of the range of estimates (15%-20%). BBSE3 0.7% 6.79% 4,356 59,160 5,557.9 2.8 9.39% Financials  High-dividend companies may decide to pay BRDT3 1.3% 6.46% 2,070 25,781 1,082.0 0.9 4.20% 1.1 extraordinary dividends in 2021 to avoid paying CYRE3 0.3% 6.15% 699 11,335 698.8 1.8 6.16% 0.3 taxes in the following years. ITUB4 6.2% 5.82% 18,631 290,294 11,831.8 1.3 4.08% Financials SANB11 0.6% 5.24% 9,127 168,302 10,531.6 2.8 6.26% Financials  Companies may choose to buy back shares to help their shareholders avoid taxes on BBAS3 1.9% 4.32% 5,745 110,706 4,212.6 1.5 3.81% Financials dividends. However, for companies with little BRAP4 0.7% 4.23% 681 21,383 672.4 2.0 3.14% Net Cash free float and low liquidity, this option may be CPLE6 0.2% 4.13% 799 19,791 818.7 3.1 4.14% 1.2 limited. BBDC4 4.9% 4.05% 10,720 226,778 5,801.4 0.7 2.56% Financials  In general, however, we believe that high- CIEL3 0.2% 4.03% 785 10,829 232.6 0.1 2.15% 0.0 dividend players are likely to suffer more and CCRO3 0.7% 3.80% 1,257 27,209 973.2 0.5 3.58% 2.5 high-growth companies are likely to benefit the CMIG4 0.7% 3.75% 804 22,605 505.1 0.3 2.23% 1.4 most. EGIE3 0.5% 3.56% 1,366 35,852 1,407.2 1.7 3.92% 2.0  From a shareholder perspective, the reduction MRVE3 0.2% 3.48% 329 9,133 163.9 0.3 1.79% 4.3 in corporate taxes would not be enough to CPFE3 0.2% 3.44% 1,314 37,506 2,075.2 1.8 5.53% 2.0 offset the elimination of the interest-on-equity CSNA3 1.3% 3.38% 662 43,957 12.2 0.0 0.03% 1.0 benefit and the new dividend taxes.

Source: Itaú BBA, Economatica 5 Performance of Ibovespa Stocks on Friday Following the Tax Reform Announcement

Top 10 Post-Announcement Performance Worst 10 Post-Announcement Performance

-1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0%

4.3% BRAP4 -5.6% ABEV3

1.2% VALE3 -4.5% MULT3

1.2% BIDI11 -4.2% YDUQ3

0.7% MRFG3 -3.6% HGTX3

0.5% GOAU4 -3.6% ELET6

0.2% GGBR4 -3.5% BRML3

0.0% EQTL3 -3.5% SULA11

-0.2% BRDT3 -3.4% HYPE3

-0.3% SBSP3 -3.4% RADL3

-0.3% VVAR3 -3.4% ELET3

Source: Itaú BBA, Economatica 6 Tax Reform for Individuals

Lower Income Taxes for Individuals

 Individuals would now be allowed to adjust the value of real estate assets, potentially reducing the taxes owed on capital gains once the asset is sold.

 Currently, the tax rates on capital gains range from 15% to 22.5%.

 The value of real estate assets could be adjusted annually; a 5% tax would be owed on the difference.

 Individuals who receive dividends from large companies would have to pay taxes on those dividends at a rate of 20%.

 Individuals who receive dividends from small companies would not have to pay taxes on the dividends if the amount received was less than BRL 20,000 per month.

 The reform proposal would preserve the simplified tax declaration for individuals with annual incomes below BRL 40,000. In their case, the deduction is 20%.

Current New

Tax Rate Taxpayers (mm) Ranges Taxpayers (mm) Ranges 0% 10.7 Up to BRL 1,903.98 16.3 Up to BRL 2,500 7.5% 6.8 BRL 1,903.99 - BRL 2,826.65 2.8 BRL 2,500.01 - BRL 3,200 15.0% 3.7 BRL 2,826.66 - BRL 3,751.05 3.6 BRL 3,200.01 - BRL 4,250 22.5% 2.3 BRL 3,751.06 - BRL 4,664.68 2.2 BRL 4,250.01 - BRL 5,300 27.5% 6.9 Over BRL 4,664.68 6.3 Over BRL 5,300.01

52% increase in the number of individuals exempt from paying income taxes, due to the change in the exemption threshold. 31% increase in the exemption threshold, from BRL 1,900/month to 2,500/month.

Source: Itaú BBA, Ministério da Economia 7 Appendix

Impact on Tax Rates, EPS 2022-23 and Fair Values

Tax rate w/o IoE Fair Value Current tax Current Tax EPS impact in EPS impact in Sector Company Tax Regime IoC (Yes/No) with reduced IR change Comment rate with IoE rate (ex IoE) 2022 (%) 2023 (%) (after 2 years) (%) Agribusiness Hidrovias Real No 22.0% 22.0% 20.0% 2.5% 2.5% 0.0% Sudam tax benefit Agribusiness São Martinho Real Yes 23.3% 26.7% 21.7% -1.1% 2.1% 0.0% Agribusiness SLC Agricola Real Yes 25.9% 27.7% 22.7% 0.9% 4.3% 3.6% Banks ABC Real Yes 28.7% 36.0% 33.5% -8.5% -6.4% -9.2% Banks B. Brasil Real Yes 25.9% 37.0% 34.5% -13.3% -9.1% -10.3% Banks B. PAN Real Yes 33.0% 40.0% 37.5% -8.6% -6.7% -5.8% Banks Banrisul Real Yes 30.2% 40.0% 37.5% -12.3% -6.0% -7.0% Banks Bradesco Real Yes 33.4% 40.0% 37.5% -8.0% -6.1% -5.9% Banks BTG Real Yes 27.7% 35.0% 32.5% -8.4% -6.9% -7.3% Banks Modalmais Real Yes 32.0% 40.0% 37.5% -10.0% -6.7% -5.5% Banks Santander Real Yes 31.8% 37.0% 34.5% -5.8% -4.4% -4.9% Education Afya* Real No 2.1% 2.1% 1.8% 2.1% 4.6% 4.3% Education Anima Real No 1.3% 1.3% 1.1% 0.1% 0.1% 0.3% Education Arco* Real No 34.0% 34.0% 29.0% 3.8% 7.6% 8.8% Education Cogna Real No 24.9% 24.9% 19.9% - 5.8% 5.0% Education Ser Real Yes 4.0% 4.5% 3.8% 0.3% 0.6% 1.1% Education Vasta* Real No 34.0% 34.0% 29.0% 3.0% 6.0% 7.9% Education Vitru* Real No 13.8% 13.8% 11.8% 2.8% 5.9% 6.3% Education YDUQS Real No 2.0% 2.0% 1.7% 0.2% 0.4% 0.3% Financials Real Yes 27.9% 32.0% 27.0% -4.3% 1.1% 4.5% Financials Caixa Seguridade Real No 17.4% 17.4% 14.3% 3.9% 7.7% 12.5% Financials Cielo Real Yes 24.8% 34.0% 29.0% -13.0% -7.6% -3.3% Lei do Bem Financials Mosaico Real No 1.2% 1.2% 1.0% 0.2% 0.2% 2.6% Lei do Bem Financials PagSeguro Real No 28.8% 28.8% 24.8% 2.4% 5.5% 6.2% Lei do Bem Financials Stone Real No 29.6% 29.6% 24.6% 3.4% 6.7% 7.4% Lei do Bem Food& Beverage Ambev Real Yes 13.0% 29.0% 27.0% -15.5% -15.5% -10.5% Food& Beverage BRF Real No 21.1% 21.1% 16.1% 5.0% 5.0% 10.2% Food& Beverage Camil Real Yes 13.9% 18.3% 15.1% -3.3% -3.3% 0.0% Food& Beverage JBS Real No 21.0% 21.0% 21.0% 0.0% 0.0% 0.0% Food& Beverage M.Dias Branco Real Yes 4.0% 10.6% 5.5% -7.0% -7.0% -10.0% Food& Beverage Real No 21.0% 21.0% 21.0% 0.0% 0.0% 0.0% Food& Beverage Minerva Real No 9.0% 9.0% 7.6% 3.9% 3.9% 4.2%

Source: Itaú BBA 8 Appendix

Impact on Tax Rates, EPS 2022-23 and Fair Values

Health Care Alliar Real Yes 34.0% 35.1% 30.1% -1.0% 3.0% 11.5% Health Care Blau Farmacêutica Real No 33.3% 33.3% 28.3% 3.5% 7.0% 5.5% Health Care DASA Real Yes 30.7% 34.8% 29.8% -5.3% 0.5% 5.5% Health Care Fleury Real Yes 28.7% 31.1% 26.1% -0.4% 3.7% 7.5% Health Care Hermes Pardini Real Yes 28.9% 34.1% 29.1% -3.3% 0.0% 1.0% Health Care Hypera Real Yes 17.9% 25.0% 20.0% -14.9% -2.8% -2.9% Health Care Mater Dei Real No 34.0% 34.0% 29.0% 3.8% 7.8% 9.5% Health Care OdontoPrev Real Yes 29.7% 32.9% 27.9% -1.7% 2.6% 4.0% Health Care Qualicorp Real Yes 26.9% 30.3% 25.3% -1.9% 1.3% -0.7% Industrials Azul Real No 24.0% 24.0% 19.0% 0.0% 6.6% 0.0% FV Based on Multiples Industrials CCR Real Yes 21.4% 34.0% 29.0% -17.9% -9.6% -7.4% Industrials Real Yes 17.5% 25.0% 20.0% -18.5% -3.0% -6.3% Industrials GOL Real No 15.0% 15.0% 10.0% 0.0% 5.3% 0.0% FV Based on Multiples Industrials GPS Real Yes 31.6% 34.0% 29.0% -5.3% 0.3% -0.8% Industrials Iochpe Real Yes 31.5% 34.0% 32.8% 14.6% 6.6% -0.7% Industrials JSL Real Yes -20.8% 26.5% 21.5% -5.2% -0.8% -6.4% Industrials Log-In Real Yes 27.8% 34.0% 29.0% -5.1% 0.0% -0.2% Industrials Marcopolo Real Yes 15.5% 25.0% 20.0% -11.3% -5.4% -13.8% Industrials Randon Real Yes 26.7% 34.0% 29.0% -7.7% -3.1% -8.1% Industrials Santos Brasil Real Yes 24.5% 34.0% 29.0% -12.9% -6.0% -7.2% Industrials SIMPAR Real Yes 25.0% 29.7% 24.7% -3.9% 0.5% -2.7% Industrials Tegma Real Yes 22.6% 27.0% 22.0% -3.5% 0.8% -0.3% Industrials Tupy Real Yes 26.4% 30.0% 28.3% -11.0% -6.9% -2.8% Industrials VAMOS Real Yes 25.4% 30.0% 25.0% -3.7% 0.6% 0.3% Industrials WEG Real Yes 13.2% 15.0% 11.7% -0.3% 2.6% 1.8% Oil & Gas 3R Petroleum Real No 15.0% 15.0% 14.0% 0.9% 1.6% 2.8% Sudene tax benefit Oil & Gas Real Yes 23.0% 25.0% 20.0% 4.9% 7.2% 6.0% Oil & Gas Enauta Real No 34.0% 34.0% 29.0% 3.8% 7.7% 6.8% Oil & Gas OceanPact Real No 34.0% 34.0% 29.0% 3.8% 7.6% 6.0% Oil & Gas Real Yes 31.0% 34.0% 29.0% 3.8% 7.6% 5.7% FV Based on Multiples Oil & Gas PetroReconvavo Real No 15.0% 15.0% 14.0% 0.7% 1.6% 4.1% Sudene tax benefit Oil & Gas PetroRio Real No 24.0% 24.0% 19.0% 3.3% 6.6% 5.8% Oil & Gas Real No 29.0% 29.0% 24.0% 3.5% 7.1% 2.2% Sudene tax benefit Source: Itaú BBA 9 Appendix

Impact on Tax Rates, EPS 2022-23 and Fair Values

Tax rate w/o IoE Fair Value Current tax Current Tax EPS impact in EPS impact in Sector Company Tax Regime IoC (Yes/No) with reduced IR change Comment rate with IoE rate (ex IoE) 2022 (%) 2023 (%) (after 2 years) (%) Pulp & Paper Real Yes 30.0% 33.0% 28.0% -5.4% 2.9% 2.6% Pulp & Paper Suzano Real Yes 10.0% 13.6% 8.6% -1.8% 1.3% 1.0% Real Estate Alianse Sonae Real/Presumed No 25.4% 25.4% 20.4% -9.4% -6.0% -6.3% Negative impact on EPS is mainly related to companies shifting to the Lucro real regime Real Estate BR Malls Real/Presumed Yes 8.0% 26.4% 21.4% -12.8% -10.6% -7.1% Negative impact on EPS is mainly related to companies shifting to the Lucro real regime Real Estate BR Properties Real No 34.0% 34.0% 29.0% 3.5% 7.4% 11.9% Real Estate HBR Realty Real/Presumed No 32.0% 32.0% 27.0% -4.8% -4.9% -6.7% Negative impact on EPS is mainly related to companies shifting to the Lucro real regime Real Estate Iguatemi Real/Presumed No 14.5% 14.5% 9.5% -16.8% -14.8% -4.9% Negative impact on EPS is mainly related to companies shifting to the Lucro real regime Real Estate LOG Commercial Properties Real/Presumed No 13.6% 13.6% 8.6% -8.5% -6.3% -7.0% Negative impact on EPS is mainly related to companies shifting to the Lucro real regime Real Estate Multiplan Real Yes 15.2% 32.9% 27.9% -7.9% -5.5% -3.2% Real Estate São Carlos Real/Presumed No 28.5% 28.5% 23.5% -22.7% -24.7% -5.5% Negative impact on EPS is mainly related to companies shifting to the Lucro real regime Restaurants Allied Real No 34.0% 34.0% 29.0% 1.6% 2.9% 6.3% Restaurants Burguer King Brasil Real No 34.0% 34.0% 29.0% - - 7.6% Restaurants IMC Real No 34.0% 34.0% 29.0% - - 2.2% Retail Arezzo Real Yes 26.8% 30.2% 25.2% 0.5% 0.5% 0.0% Retail Assai Real Yes 31.9% 34.0% 29.0% 2.4% 2.4% -1.0% Retail Real Yes 30.9% 34.0% 29.0% - - 8.4% Retail Carrefour Brasil Real Yes 27.3% 34.4% 29.4% -4.2% -4.2% 0.0% Retail Espaço Laser Real No 31.9% 31.9% 26.9% 5.5% 5.5% 9.1% Retail Grupo Mateus Real No 5.8% 5.8% 0.8% 5.4% 5.4% 9.1% Retail Grupo SBF Real No 28.3% 28.3% 23.3% 5.0% 5.0% 7.7% Retail Grupo Soma Real Yes 2.9% 10.1% 5.1% -7.3% -7.3% -6.3% Retail Guararapes Real Yes 22.1% 28.7% 23.7% -3.7% -3.7% -5.0% Retail Real Yes 26.5% 34.0% 29.0% -5.2% -5.2% 3.4% Retail Lojas Quero Quero Real Yes 30.8% 36.0% 31.0% -2.1% -2.1% 0.0% Retail Real Yes 27.2% 34.0% 29.0% -3.6% -3.6% -2.0% Retail Real Yes 24.2% 31.1% 26.1% -4.5% -4.5% 4.0% Retail Mobly Real No 34.0% 34.0% 29.0% - - 10.8% Retail Natura Real Yes 27.6% 34.0% 29.0% -3.8% -3.8% -3.4% Retail Pague Menos Real No 12.6% 12.6% 7.6% 1.7% 1.7% 6.3% Retail Panvel Real Yes 28.4% 34.0% 29.0% -2.7% -2.7% 7.4% Retail Pão de Açucar Real Yes 25.7% 34.0% 29.0% -4.7% -4.7% 0.0% Retail Petz Real Yes 30.0% 34.0% 29.0% -0.4% -0.4% 0.0% Retail RD Real Yes 29.5% 34.0% 29.0% -1.0% -1.0% 3.6% Retail Track & Field Real No 26.9% 26.9% 21.9% 4.0% 4.0% 7.1% Source: Itaú BBA 10 Appendix

Impact on Tax Rates, EPS 2022-23 and Fair Values

Retail Real Yes 19.0% 24.0% 19.0% -2.0% -2.0% -1.8% Retail Vivara Real Yes 7.2% 12.0% 7.0% -1.2% -1.2% -2.9% Steel & Mining CSN Real Yes 25.0% 28.5% 23.5% -1.8% -0.4% 3.2% Steel & Mining Real Yes 19.1% 25.0% 20.0% -1.3% -0.8% 0.0% Steel & Mining Real Yes 25.0% 31.0% 26.0% -2.3% 1.1% 0.0% Steel & Mining Vale Real Yes 25.0% 28.2% 25.5% -0.9% -0.1% 0.0% Tech Bemobi Real No 37.6% 37.6% 29.0% 3.8% 7.6% 7.9% Tech Infracommerce Real No 34.0% 34.0% 29.0% 3.6% 7.5% 9.0% Tech Intelbras Real Yes -3.5% 7.1% 2.7% -5.3% -2.2% -2.1% Sudene, Lei da exploração, Lei do Bem, Lei da informática, Zona Franca Tech Locaweb Real Yes 33.6% 51.9% 29.0% 3.2% 6.5% 9.1% Tech Sequoia Real No 34.0% 34.0% 29.0% 3.2% 7.2% 8.8% Tech Tots Real Yes 22.5% 31.1% 30.2% -7.8% -3.1% -1.4% Telecom VIVO Real Yes 20.6% 35.0% 30.0% -15.2% -13.1% -11.0% Utilities AES Brasil Real/Presumed Yes 19.2% 23.2% 21.0% -1.1% 2.2% 2.0% New assets under "lucro presumido" tax regime Utilities Alupar Real/Presumed No 25.2% 25.2% 22.3% 4.0% 8.0% 4.1% Sudam/Sudene tax benefit Utilities Real Yes 30.7% 34.0% 29.0% -1.2% 2.1% 3.0% Utilities CESP Real Yes 13.0% 24.0% 20.3% -10.4% -8.2% -1.8% Utilities Copasa Real Yes 27.1% 34.0% 29.0% -6.4% -2.4% -3.5% Utilities Real/Presumed Yes 29.7% 34.0% 29.0% -2.4% 1.3% 2.5% Utilities CPFL Energia Real/Presumed Yes 27.0% 27.7% 23.7% 1.9% 4.8% 5.2% Sudam/Sudene tax benefit Utilities EdB Real/Presumed Yes 31.1% 34.0% 29.0% -0.7% 3.2% 5.1% Utilities Real No 34.2% 34.2% 28.8% 5.3% 8.5% 5.0% Sudam/Sudene tax benefit Utilities Energisa Real No 20.2% 20.2% 17.9% 1.5% 3.0% 4.1% Sudam/Sudene tax benefit Utilities Eneva Real No 15.3% 15.3% 14.0% 0.5% 1.5% 2.3% Sudam/Sudene tax benefit Utilities Engie Real/Presumed Yes 25.9% 30.1% 25.1% 1.3% 4.0% 2.4% Sudam/Sudene tax benefit Utilities Equatorial Real/Presumed No 15.0% 15.0% 9.0% 7.0% 7.7% 4.1% Sudam/Sudene tax benefit Utilities ISA CTEEP Real/Presumed Yes 23.9% 28.6% 24.4% -4.3% -0.7% 0.8% Sudam/Sudene tax benefit Utilities Light Real No 34.0% 34.0% 29.0% 3.8% 7.7% 7.3% Utilities Neoenergia Real/Presumed No 20.3% 20.3% 19.3% 0.8% 1.2% 3.9% Sudam/Sudene tax benefit Utilities Omega Presumed No 14.4% 14.4% 13.3% 1.1% 2.4% 1.4% Utilities Real Yes 28.6% 33.9% 28.9% -5.3% -0.7% -3.2% Utilities Real Yes 31.7% 34.1% 29.1% -0.1% 3.8% 1.2% Utilities Taesa Real/Presumed Yes 19.9% 19.9% 17.1% 0.4% 1.3% 2.0% Sudam/Sudene tax benefit

Source: Itaú BBA 11 Disclaimer

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