Investment Analysis 1 October 2, 2018 Recommended Portfolio –October/18

The Bovespa Index ended September with a 3.48% rise and the Planner Portfolio increased 2.21%

The Bovespa Index went through the month of September under the influence of the domestic political scene, the behavior of the main commodities (iron ore and oil) and also the political events abroad. From the start the presidential race was deeply affected by the 6x1 trial outcome against Lula, which led to the withdrawal of his candidacy to the federal government. Fernando Haddad was then nominated to replace Lula, with the first polls signaling a polarization of the electorate between two candidates: Jair Bolsonaro (PSL) and Fernando Haddad (PT). If there was any fear that the stock market could overreact to this fact, nothing of the sort happened.

The foreign capital inflow that scored negative up to the September 17th reverted in the following trading sessions, accumulating a net inflow of funds of BRL 2.0 billion until September 26th, thus contributing to the accumulated rise of the Bovespa Index within the period.

The closing of September also marks the final stretch for the first-round of elections with polls clearly establishing a dispute between the two candidates mentioned above. Should this scenario be confirmed, we expect higher volatility at , as candidates strive for support for the second round from parties that left the dispute.

The international landscape also raises concerns as regards investment decisions in October, namely: a) signaling of further hikes in US interest rates; b) the fragility of the Italian financial system; c) resumption of Brexit negotiations; d) incessant trade dispute between the United States and China, and e) discussions about the supply of oil, indicating that prices may rise further; these are just a few aspects that should inform investment decisions this upcoming month.

In the face of an uncertainty-filled scenario and with the outcome of the elections happening before the turn of the month - second round is scheduled for October 28 - we chose to continue with a diversified portfolio with stocks from sectors less exposed to market risks and with good earnings prospects for the third quarter. As of the second half of the month, 3Q18 results will be released, notably Vale and Itaú. The expectation of another round of improved results in the period may act as a supporting factor of the Bovespa Index, although the foreign inflow still weighs in heavily on the market curve. Within the current year, the Planner Portfolio accumulated a 4.27% increase over the Bovespa Index, which had a 3.86% rise.

Planner Portfolio Accumulated Perfornance in 2018

115 Planner Bovespa Month Diff. (%) Portfolio Index 110 January 7.99 11.14 (3.15) 105 February (1.15) 0.52 (1.67) March 1.74 0.01 1.73 100 April 0.78 0.88 (0.10) May (7.37) (10.87) 3.50 95 June (1.97) (5.20) 3.23 90 July 4.08 8.88 (4.80) August (1.38) (3.21) 1.83 85 September 2.21 3.48 (1.27) 80 October - - - November - - - 75 Planner Portofolio Bovespa Index December - - - Planner Portofolio Bovespa Index Acum. 2018 4.27 3.86 0.41 70 jan fev mar abr mai jun jul ago set out nov dez Source: Planner Corretora and Economatica

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Investment Analysis 1 October 2, 2018 Recommended Portfolio –October/18

Planner Portfolio Performance in September

The Planner September Portfolio appreciated 2.21%, with positive results for Lojas Renner, and Pão de Acúcar, in that order. Ferbasa had the poorest performance, despite positive results and optimistic expectation for the second half of 2018.

Monthly Portfolio :September 2018 Weight on Closing Fair Avg. Daily Potential Oscillation - % Portfolio Market Cap Company Ticker Price Price % Vol.?day Upside (%) (R$ bn) (R$/shr) (R$/shr.) Bovesp Propose Contribution (R$ bn) Sep-18 Year a Index d

BB Seguridade BBSE3 24.10 37.00 53.5 (1.55) (9.78) 1.24 10.0 (0.16) 48.1 67.7 Bradesco BBDC4 28.67 45.00 57.0 1.02 (5.69) 7.10 10.0 0.10 182.1 351.0 CPLE6 21.41 32.00 49.5 5.00 (10.17) 0.16 10.0 0.50 5.7 17.2 Ferbasa FESA4 19.34 25.00 29.3 (8.50) (1.03) 0.00 10.0 (0.85) 1.8 5.0 Gerdau GGBR4 17.19 20.40 18.7 7.17 41.00 1.28 10.0 0.72 27.1 145.0 Lojas Renner LREN3 31.00 34.00 9.7 9.90 (11.65) 1.67 10.0 0.99 22.2 104.2 Odontoprev ODPV3 12.81 16.00 24.9 (2.00) (18.64) 0.00 10.0 (0.20) 6.8 16.4 Pão de Açúcar PCAR4 87.51 95.00 8.6 7.15 11.89 1.01 10.0 0.72 23.3 113.0 SUZB3 48.08 51.00 6.1 1.63 158.49 1.68 10.0 0.16 52.6 253.0 Telefônica Brasil VIVT4 39.20 46.00 17.3 2.29 (12.99) 1.25 10.0 0.23 64.5 73.0 Planner Portfolio 27.44 15.38 100.0 2.21 1,145.6 Bovespa Index IBOV 79,342 87,400 10.16 3.48 3.86 IBRX IBXL 13,327 3.73 4.40 IBRX50 IBXX 32,611 3.23 3.15 Source : Planner Corretora and Economatica

Suggested Portfolio for October

For the October Portfolio we made only two changes, replacing Bradesco and Gerdau (for profit realization) for Itau Unibanco and .

Monthly Portfolio :October 2018

Closing Weight on Portfolio Avg. Daily Fair Price Potential Market Cap Company Ticker Price Vol.?day (R$/shr.) Upside (%) (R$ bn) (R$/shr) Bovespa (R$ bn) Proposed Index

BB Seguridade BBSE3 24.10 37.00 53.5 1.24 10.0 48.1 67.7 Copel CPLE6 21.41 32.00 49.5 0.16 10.0 5.7 17.2 Ferbasa FESA4 19.34 25.00 29.3 0.00 10.0 1.8 5.0 Itau Unibanco ITUB4 44.13 59.00 33.7 10.56 10.0 264.5 481.4 Lojas Renner LREN3 31.00 34.00 9.7 1.67 10.0 22.2 104.2 Odontoprev ODPV3 12.81 16.00 24.9 0.00 10.0 6.8 16.4 Pão de Açúcar PCAR4 87.51 95.00 8.6 1.01 10.0 23.3 113.0 Suzano Papel e Celulose SUZB3 48.08 51.00 6.1 1.68 10.0 52.6 253.0 Telefônica Brasil VIVT4 39.20 46.00 17.3 1.25 10.0 64.5 73.0 Ultrapar UGPA3 37.33 55.00 47.3 1.56 10.0 20.3 83.8 Planner Portfolio 27.98 19.13 100.0 1,214.8 Bovespa Index IBOV 79,342 87,400 10.16 IBRX IBXL 13,327 IBRX50 IBXX 32,611 Source : Planner Corretora and Economatica

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Investment Analysis 1 October 2, 2018 Recommended Portfolio –October/18

TEAM

Mario Roberto Mariante, CNPI* [email protected]

Luiz Francisco Caetano, CNPI [email protected]

Victor Luiz de Figueiredo Martins, CNPI [email protected]

Ricardo Tadeu Martins, CNPI [email protected]

DISCLAIMER

This report was prepared by Planner Corretora and is supplied for information purposes only. The information, opinions, estimates and projections refer to available data and are subject to change as a result of alterations in market conditions, without prior notice. The information used in this report was obtains from the company(ies) analyzed and from public sources, which we believe to be reliable and of good faith. However, it has not been independently confirmed and no guarantee, expressed or implied, is given as to accuracy. No part of this report may be copied or re-distributed without the previous consent of Planner Corretora de Valores. (*) In accordance with article 16, sole paragraph, of ICVM 483, I declare I am solely responsible for the information and statements contained in this analysis report. Declaration of the securities analyst(s) (of investment), under the terms of art. 17 of ICVM 598 The securities analyst(s) (of investment) contributing to this report declare that the recommendations herein only reflect their personal opinion on the company and its securities, which formed in an independent and autonomous way, inclusively in relation to Planner Corretora and other companies in the Group. Declaration of the employer of the analyst, under the terms of art. 18 of ICVM 483 Planner Corretora and other companies in the Group declare that companies analyzed in this report may be paid for services rendered.

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