EARNINGS RELEASE 1Q18 RESULTADOS

EARNINGS RELEASE 1Q18 CONFERENCE CALL IN ENGLISH May 11 th, 2018 - Friday 10:00 a.m. (US ET) 11:00 a.m. (BRT) / 3:00 p.m. (London) Connecting Number: +1 (412) 317 6776 Code: Valid Webcast: click here

Valid reports adjusted EBITDA of R$ 73.0 million in 1Q18 and confirms solid recovery Rio de Janeiro, May 09, 2018 Valid (B³: VLID3 - ON) announces today its results for the first quarter of 2018 (1Q18). The financial and operating information below is presented on a consolidated basis in accordance with international financial reporting standards (IFRS). Net Revenue Increase of 7.8% over 1Q17 (R$386.3 million vs. R$358.5 million). Compared to 4Q17, Net Revenue dropped by 6.2% due to seasonality. Foreign operations represented 41.3% of total Net Revenue compared to 38.4% in 1Q17 (US$49.1 million vs. US$43.7 million). EBITDA¹ R$ 73.0 million in 1Q18 vs. R$50.4 million in 1Q17, a 44.8% increase between the periods and 10.4% over 4Q17. In 1Q18, foreign operations accounted for 15.0% of total EBITDA 1 compared to 4.3% in 1Q17 (US$ 3.4 million vs. US$0.7 million). Net Income In 1Q18, Net Income was R$19.7 million compared to R$7.6 million in 1Q17, an increase of 159.2%. Subsequent Events Payment of dividends in the amount of R$0.15 per share on May 18 th, 2018 approved in AESM on April, 2018. On April 30 th 2018, we paid R$64.8 million referring to the Company s 4 th issue of debentures, of which R$62.5 million was related to the principal and R$ 2.3 million related to interest. ¹Adjusted EBITDA, for details see page 15

Dear Sirs, With the highest EBITDA for a first quarter ever recorded in its history, Valid consolidates its growth recovery, which began in the second half of 2017. This evolution in results is due to two factors: the stabilization of traditional markets and operational efficiency gains. We now see a normalization of volumes, in line with the fundamentals of each division. This normalization adds to the results from the efficiency gain actions carried out until last year. We have already implemented actions that reduced costs by R$ 63MM, and are confident that we will surpass the goal of R$80MM set in the past. The Identification division continues to contribute the most to the company's results. In Brazil, this is due to the normalization of volumes and structural actions implemented throughout 2017. In the United States, after the implementation of the operation in Washington state, where we exceeded the expectation of volumes, we have been more competitive in the ongoing bids in other states. In addition to the results regarding document issuance services, we continue to expand the bottled water traceability solution and to develop new traceability models with good growth prospects. In the Mobile division we operate globally and profitability is impacted by two factors that have different behaviors by region: sales mix and seasonality. In 1Q18, sales were concentrated in countries with lower prices and margins, but we were competitive and sold 101 million cards. Our expectation is that the next cycles will bring better margins for the division. In parallel, we are rapidly evolving in the process of approving esim solutions (Embedded Sim solutions) with emphasis on connected car solutions; ratifying our strategy of acting as a relevant player in the automotive IoT ecosystem. Payment had the best comparative results among the divisions, with volumes rising two digits, and negative margins rising to a positive 6.6%, an increase of 10 percentage points (p.p.), mainly due to the previous effort to increase operational efficiency. In all regions we see consistency in this turn-around. With the 1Q18 result, we safely affirm that we solidified our recovery. After two disappointing years, the evolution over the quarters confirms the momentum of our markets stabilization. The recovery of the margins, which has been consistent among the regions and markets we operate, brings us the confidence that we are back to growth. We would like to thank you once again for the confidence placed in our Executive Board and employees, who are still committed to achieving excellent results in 2018.

Consolidated Results (R$ million) 1Q17 1Q18 Chg. % 4Q17 Chg. % Net Sales Revenue 358,5 386,3 7,8% 411,9-6,2% Costs of goods and/or services sold -281,4-285,8 1,6% -320,0-10,7% Gross Profit 77,1 100,5 30,4% 91,9 9,4% Operating Revenues (Expenses) Selling expenses -28,0-31,2 11,4% -27,1 15,1% General and administrative expenses -22,8-20,6-9,6% -23,4-12,0% Other operating income (expenses) -17,2-11,7-32,0% -10,9 7,3% Equity pickup 0,0-0,3 N/A -1,3 N/A Income before finance income (costs) 9,1 36,7 303,3% 29,2 25,7% Finance Result Finance income 21,1 22,8 8,1% 20,2 12,9% Finance costs -23,0-27,3 18,7% -25,5 7,1% Income (loss) before income taxes 7,2 32,2 347,2% 23,9 34,7% Income and social contribution taxes Current income and social contribution taxes -7,7-9,6 24,7% -6,3 52,4% Deferred income and social contribution taxes 8,5-2,3-127,2% -16,6-86,1% Net income (loss) for the period 8,0 20,3 153,8% 1,0 1930,0% Income (loss) attributable to: Controlling interest 7,6 19,7 159,2% 1,1 1690,9% Noncontrolling interest 0,4 0,6 50,0% -0,1-700,0% EBITDA Reconciliation (R$ million) Income (loss) before taxes on income 7,6 19,7 159,2% 1,1 1690,9% (+) Noncontrolling interest 0,4 0,6 50,0% -0,1 N/A (+) Income tax and social contribuition -0,8 11,9 N/A 22,9-48,0% (+) Financial revenues / (expenses) 1,9 4,5 136,8% 5,3-15,1% (+/-) Depreciation and amortization 28,2 28,8 2,1% 29,0-0,7% EBITDA 37,3 65,5 75,6% 58,2 12,5% (+) Others (income) operating expenses 17,2 11,7-32,0% 10,9 7,3% (+) Depreciation and amortization -4,1-4,2 2,4% -4,3-2,3% (+/-) Equity pickup - Cubic 0,0 0,0 N/A 1,3-100,0% Adjusted EBITDA 50,4 73,0 44,8% 66,1 10,4%

NET REVENUE The Company's total Net Revenue reached R$386.3 million vs. R$358.5 million in 1Q17, a 7.8% increase yearon-year (YoY). Compared to 4Q17, we recorded a decrease of 6.2%, mainly explained by seasonality between the quarters. Therefore, we began 2018 growing in all our lines of business in comparison with 1Q17. Revenues from the operation in Brazil totaled R$226.8 million in 1Q18 vs. R$220.9 million in 1Q17, up 2.7% and up 6.2% versus 4Q17. Operations outside Brazil showed a growth of 16,0% in relation to 1Q17. When compared to 4Q17, these operations fell by 19.5%, mainly due to a worsened performance of the Mobile and Payment operations in the United States, due to the seasonality of these markets in the periods of comparison. NET INCOME In 1Q18, we posted a Net Income of R$19.7 million, an increase of 159.2% against 1Q17. Other operating income and expenses totaled R$ 11.7 million in 1Q18 vs. R$17.2 in 1Q17, where the main expenses were: 1) Expenses from projects focused on process improvement in the amount of R$6.0 million in 1Q18; 2) Amortization of surplus values related to the acquisition of Valid AS in the amount of R$3.4 million and which will continue to impact the Company's Net Income by USD 390 thousand/month. Below the Financial Result for the quarter: Net Finance Result 1Q18 1Q17 Financial Investment 3.048 8.356 Derecognition of Financial Operations 0 8.800 Loans, financing and leasing -11.879-16.971 Interest and Exchange Rate Variation 6.013-1.091 Others -1.674-1.011 Total - 4. 492-1. 917

EBITDA We accomplished the best EBITDA result during the first quarter of our history. 1Q18 recorded a very significant increase in EBITDA¹ of 44.8% compared to the same period in 2017, totaling R$73.0 million versus R$50.4 million. When compared to 4Q17, growth was 10.3%. Consolidated EBITDA margin in 1Q18 was 18.9%, 4.8 p.p. higher than in 1Q17 and 2.8 p.p. higher than in 4Q17. This increase in margin results from the Company's efforts to reduce costs and optimize processes. The Payment division benefited the most from the efforts and projects developed last year, and in 1Q18 we already had the positive contribution of this division, which presented a margin of 6.6% against -3.8% in the same period of the previous year. We continued to post an excellent performance of the Identification division with a consolidated margin of 34.1% and a volume growth of 6.2% in the issuance of driver's licenses and I.D. cards in Brazil. Below the EBITDA evolution for the first quarters of the last 4 years: Consolidated EBITDA by quarter (R$ MM) 18.4% 18.9% 15.0% 14.1% 69 69 73 50 1Q15 1Q16 1Q17 1Q18 EBITDA (R$) EBITDA Margin (%)

R$ million 1Q17 1Q18 Chg. 4Q17 Chg. Net Revenue 146,6 156,2 6,5% 146,6 6,5% ID (R$) 127,5 136,5 7,1% 125,9 8,4% Digital Certification (R$) 19,1 19,7 3,1% 20,7-4,8% EBITDA 47,7 53,2 11,5% 44,3 20,1% EBITDA Margin 32,5% 34,1% 1,6 p.p. 30,2% 3,8 p.p. Volume ID 6,0 6,7 11,7% 6,1 9,8% Volume of Certificates 118,1 119,8 1,4% 123,2-2,8% As of this quarter, due to strategic issues and business complementarity, we will consolidate the results of the Identification and Digital Certification divisions. The Identification division recorded once again an excellent performance in 1Q18 growing by 6.5% when compared to 1Q17 and 4Q17, reaching a Net Revenue of R$156.2 million. The U.S. operation accounted for 5.2% of the division's total Net Revenue (R$8.2 million) and a total of 517 thousand documents issued, representing a YoY increase of 200.4%, since in 1Q17 we were not operating with 100% of the expected volumes for the division. EBITDA 1 in 1Q18 reached R$53.2 million, 11.5% and 20.1% increase, respectively, on 1Q17 and 4Q17, with a margin of 34.1% in the period. In Brazil, the total volume of driver s licenses and I.D. cards issued in the quarter increased by 6.2% versus 1Q17 and 11.9% versus 4Q17.

R$ million 1Q17 1Q18 Chg. 4Q17 Chg. Net Revenue 74,2 81,5 9,8% 100,2-18,7% EBITDA 8,0 10 25,0% 17,8-43,8% EBITDA Margin 10,8% 12,3% 1,5 p.p. 17,8% -5,5 p.p. Volume 75,0 101,5 35,3% 107,9-5,9% US$ million* 1T17 1T18 Variação 4T17 Variação Net Revenue 23,6 25,1 6,4% 30,8-18,5% EBITDA 2,6 3,1 19,2% 5,5-43,6% *We are presenting the results of Mobile consolidated in USD (Brazil and outside Brazil). In 1Q18, Net Revenue grew by 9.8%, from R$74.2 million in 1Q17 to R$81.5 million. Compared to 4Q17, we dropped by 18.7% due to a different expected mix composition for the period. EBITDA 1 in 1Q18 was R$10.0 million, a margin of 12.3%, growth of 25.0% and 1.5 p.p against 1Q17, respectively. Compared to 4Q17, EBITDA fell by 43.8% and EBITDA margin decreased by 5.5 p.p., mainly due to a different sales volume mix, which in the first quarters focused on countries with lower prices and margins. Analyzing the division s result in USD, we consolidated a Net Revenue of US$25.1 million, a 6.4% increase compared to 1Q17 s figures. EBITDA 1 reached US$3.1 million in 1Q18 against US$2.6 million in 1Q17, an increase of 19.2% quarter-on-quarter. Volume in 1Q18 grew by 35.3% year-on-year, mainly due to a very weak 1Q17. Compared to 4Q17, volume decreased by 5.9%.

R$ million 1Q17 1Q18 Chg. 4Q17 Chg. Net Revenue 137,8 148,7 7,9% 165,1-9,9% EBITDA -5,3 9,8 N/A 4,0 145,0% EBITDA Margin -3,8% 6,6% N/A 2,4% 4,2 p.p. Volume LATAM 25,8 30,7 19,0% 30,0 2,3% Volume US 39,5 53,8 36,2% 63,6-15,4% Consistent and gradual recovery of the EBITDA margin in all the regions we operate, especially in Brazil. Accordingly, in 1Q18, we grew by 7.9% in Net Revenue versus 1Q17 (R$148.7 million vs. R$137.8 million). Compared to 4Q17, we dropped by 9.9%, mainly due to the seasonality between the quarters related to the United States operation, where we recorded a 15.4% reduction in volume in the comparison between the periods. We recorded EBITDA of R$9.8 million in 1Q18 against a negative EBITDA of R$5.3 million in 1Q17 and growth of 145.0% when compared to the R$4.0 million reported in 4Q17. The margin increase reported against 1Q17 and 4Q17 is due not only to a stabilization of the markets we operate, but also to the efficiency increase projects that we worked on until the end of 2017.

In 1Q18 we recorded a positive operating cash generation in the amount of R$47.0 million, the higest generation observed for a first quarter, versus a cash consumption in 1Q17 in the amount of R$10.2 million. In the quarter, CAPEX expenditures totaled R$16.0 million in CAPEX against R$8.9 million in the same period of 2017. Financing activities consumed R$15.4 million, with the following key expenditures: - Payment of leasing, debentures, financing and loans: R$12.1 million; - Share buyback program: R$1.9 million.

The current breakdown of the Company's debt is shown below and we confirm that in 1Q18 the Company's financial indicators were below the Covenants: Gross Debt (R$ MM) R$ 805.2 Cash* (R$ MM) R$ 330.9 Net Debt (R$ MM) R$ 474.4 Net debt/ebitda** 1.7x EBITDA/Financial Expenses*** 6.2x *Considering short-term marketable securities **Net debt/ebitda less than or equal to three; ***EBITDA/Financial Expenses greater than or equal to 1.75 Loans, Financing and Leasing: Descripition Loan Loan Loan Loan Loan Recipient Valid USA Valid USA Valid USA Valid USA Valid USA Total amount US$52.500 thousand US$10.000 thousand US$10.000 thousand US$10.000 thousand US$17.000 thousand Maturity Nov-18 Apr-19 Oct-19 Jan-20 Jun-19 Remuneration 2,64% per year Libor + 2,70% per year Libor + 2,65% per year Libor + 2,70% per year Libor 3 months +2,65% per year Guarantee Valid S.A. Valid S.A. Valid S.A. Valid S.A. Valid S.A. Amortization of Semi-annual as of principal Nov/14 Semi-annual as of Apr/16 Quarterly as of Dec/15 Semi-annual as of Jan/17 Semi-annual as of Dec/16 Payment of interest Semi-annual as of May/13 Semi-annual as of Oct/14 Quarterly as of Dec/14 Semi-annual as of Jul/15 Quarterly as of Sep/16 R$* R$ 21.258.920,99 R$ 13.887.672,63 R$ 29.083.248,54 R$ 19.123.152,25 R$ 41.688.957,43 U$ 6.395.968,77 US$ 4.187.672,63 U$ 8.749.999,56 U$ 5.753.400,40 U$ 12.542.558,95 Descripition Loan Loan Loan Leasing Payable Leasing Payable Recipient Valid Espanha Valid Espanha Valid Certificadora Valid USA Valid USA Total amount US$50.000 thousand US$50.000 thousand R$29.875 thousand US$1.071 thousand US$151 thousand Maturity May-22 May-22 Sep-18 Mar-18 Aug-18 Remuneration 5,55% per year Libor 6 meses + 3,5% per year TJLP + 1,5% per year 1,09% per year 6,16% per year Guarantee Valid S.A Valid S.A. Bank Surety Equipment Equipment Amortization of Semi-annual as of principal May/18 Semi-annual as of May/19 Monthly as of Oct/14 Monthly Monthly Payment of interest Semi-annual as of Quarterly until Sep/14 and Semi-annual as of Nov/17 Nov/17 monthly as of Oct/14 Monthly Monthly R$* R$ 168.585.395,00 R$ 168.036.124,87 290.571,22 R$ 153.247,12 R$ 3.425.657,28 U$ EUR 41.269.374,54 EUR 41.134.914,29 U$ 87.421,39 U$ 46.106,00 Descripition Leasing Payable Leasing Payable Leasing Payable Recipient Valid S.A. Valid USA Valid USA Total amount R$12.045 thousand US$2.153 thousand US$854 thousand Maturity May-18 May-22 Jun-21 Remuneration IPC-Fipe 5,42% a.a. 5,80% a.a. Guarantee Equipment Equipment Equipment Amortization of principal Monthly Monthly Monthly Payment of interest Monthly Monthly Monthly R$* R$ 892.285,56 R$ 5.359.670,47 R$ 1.954.145,12 U$ U$ 1.612.512,93 U$ 587.925,00 *Exchange rate for the end of April/18: R$ 3.32

Debentures: Debentures 4th Issue - 04/30/2013 5th Issue - 06/24/2015 6th Issue - 06/24/2016 Approval of public offering Board of Directors Meeting of 02/25/2013 Board of Directors Meeting of 05/25/2015 Board of Directors Meeting of 05/11/2016 25.000 simple, nonconvertible debentures debentures convertible debentures 6.250 simple, non-convertible 199.613 simple, non- Quantity Unit Value R$10 thousand R$10 thousand R$1.000 Total Value R$250.000 thousand R$62.500 thousand R$199.613 thousand Type and series Unsecured, in single series Unsecured, in single series Unsecured, in single series Maturity Apr-18 Jun-18 Jun-19 Remuneration Average DI + spread (of 0,71% per year) 109% average DI accrued 114.8% average DI accrued Guarantee No real guarantee No real guarantee No real guarantee Amortiaztion of principal Payment of Interest Moody s issue rating 4 annual payments as from the second year Semu-annual as of issue date Aa3 br (Brazilian National Scale NSR) Single payment at maturity Semi-annual as of Dec-15 Aa3 br (Brazilian National Scale NSR) Single payment at maturity Semi-annual as of Dec/16 Aa3 br (Brazilian National Scale NSR) R$ 64.400.915,30 R$ 63.638.993,13 R$ 203.446.110,30 Currently, debt pegged to the American dollar corresponds to 58.3% of the total. Below the schedule of the consolidated debt amortization and also of the debt in R$ and USD as of 03/31/2018: On April 30 th 2018, we paid R$64.8 million referring to the Company s 4 th issue of debentures, of which R$62.5 million was related to the principal and R$ 2.3 million related to interest.

DIVIDENDS AND INTEREST ON EQUITY We remain committed to distributing at least 50% of our adjusted net income, without jeopardizing our policy of growing through acquisitions and the development of new businesses. The Annual Shareholders' Meeting held on April 26 th, 2018 approved the payment of dividends in the amount of R$10.6 million, complementary to the R$14.1 million distributed on November 24 th, 2017 for 2017. Therefore, we distributed the amount of R$24.7 million in dividends related to the Net Income of R$27.7 million for the previous year. EVENT DATA YEAR SHAREHOLDING P OSITION DATE P AYM ENT DATE GROSS AM OUNT P ER SHARE R$ GROSS AM OUNT R$ Interest on Equity 12/12/2016 2016 12/15/2016 01/27/2017 0,235294 15.218.604,26 Dividends 04/28/2017 2016 04/28/2017 05/12/2017 0,168079 10.842.134,40 Dividends 11/08/2017 2017 11/14/2017 11/24/2017 0,200000 14.102.535,00 SHARE BUYBACK PROGRAM We closed the first quarter of 2018 with 812,325 shares held in treasury. Accordingly, shares held in treasury account for 1.18% of total outstanding shares. 524,000 of these shares were purchased under the 2017 Share Buyback Program, effective as of February 2 nd, 2017, ending on February 1 st, 2018. On March 6 th, 2018, the Company began a new share buyback program that will extend for 18 months until September 6 th, 2019, with a buyback of up to 1,000,000 shares during this period. SHARE PERFORMANCE Valid s shares (VLID3) have been listed on the Novo Mercado special corporate governance segment of the São Paulo Stock Exchange (B3) since April 2006. On March 31 st, 2018, VLID3 shares closed at R$18.20, equivalent to a market cap of R$1,296 million. Average daily traded financial volume came to R$12.5 million in the first quarter of 2018, 34.9% increase compared to the same period of the previous year. The chart below shows Valid s share performance in the last 12 months:

EARNINGS RELEASE 1Q17 1Q18 Chg.% Financial Results (R$ million) Net Revenue 358,5 386,3 7,8% Adjusted EBITDA ¹ 50,4 73,0 44,8% Adjusted EBITDA Margin 4 14,1% 18,9% 4,8p.p. Net Income 7,6 19,7 159,2% Net Margin 2,1% 5,1% 3,0p.p. Sales Volume (million) Identification 124,1 126,5 1,9% Mobile 75,0 101,5 35,3% Means of Payment 65,3 84,5 29,4% EBITDA Reconciliation (R$ million) Income (loss) before taxes on income 7,6 19,7 (+) Noncontrolling Interest 0,4 0,6 (+) Income Tax and Social Contribuition -0,8 11,9 (+) Financial Revenues / (Expenses) 1,9 4,5 (+) Depreciation and amortization 28,2 28,8 EBITDA 37,3 65,5 (+) Others (income) operating expenses 17,2 11,7 (+) Depreciation and amortization ³ -4,1-4,2 (+/-) Minoritary EBITDA 0,0 0,0 (+) Non-recuring expenses 0,0 0,0 ADJUSTED EBITDA 50,4 73,0 Identity (R$ million) Net revenue 146,6 156,2 6,5% Identity Net Revenue 127,5 136,5 7,1% Digital Certification Net Revenue 19,1 19,7 3,1% % of Net revenue 40,9% 40,4% -0,5p.p. Adjusted EBITDA 47,7 53,2 11,5% EBITDA Margin 32,5% 34,1% 1,6p.p. % of total EBITDA 94,6% 72,9% -21,7p.p. Sales volume (million) 124,1 126,5 1,9% Identity Volume 6,0 6,7 11,7% Digital Certification Volume 118,1 119,8 1,4% Mobile (R$ milhões) Net revenue 74,2 81,5 9,8% % of Net revenue 20,7% 21,1% 0,4p.p. Adjusted EBITDA 8,0 10,0 25,0% EBITDA Margin ² 10,8% 12,3% 1,5p.p. % of total EBITDA 15,9% 13,7% -2,2p.p. Sales volume (million) 75,0 101,5 35,3% Payments (R$ milhões) Net revenue 137,8 148,7 7,9% % of Net revenue 38,4% 38,5% 0,1p.p. Adjusted EBITDA -5,3 9,8 284,9% EBITDA Margin -3,8% 6,6% 10,4p.p. % of total EBITDA -10,5% 13,4% 23,9p.p. Sales volume (million) 65,3 84,5 29,4% ¹ EBITDA and Adjusted EBITDA are not indicators of financial performance, in accordance with the accounting practices adopted in Brazil, IFRS or US GAAP, neither should they be considered individually or as an alternative to net income as a measure of operating performance, or an alternative to operating cash flow as an indicator of liquidity. Pursuant to CVM Instruction 527, of October 4, 2012, the EBITDA calculation may not exclude any non-recurring or non-operational items or items from discontinued operations. It reflects the net result for the period plus income taxes, financial expenses, financial income and depreciation, amortization and depletion. Adjusted EBITDA is used by the Company as an additional indicator of performance and should not be considered as a substitute for our results. Adjusted EBITDA corresponds to EBITDA adjusted for the effects from other operating expenses (revenues), the depreciation and amortization of items related to the administrative areas, the effects from depreciation, amortization, expenses and taxes on equity income related to Multidisplay, and other non-recurring expenses. The calculation of Adjusted EBITDA by other companies may differ from ours. In this context, Adjusted EBITDA presents limitations as a profitability indicator, as it excludes certain costs and expenses from our business that could significantly affect the company s profit. ² Net Profit adjusted for deferred liabilities with income tax and social contribution and non-recurring expenses. The Adjusted Net Profit is not a measure of the financial performance according to the Accounting Practices Adopted (GAAP) in Brazil, to IFRS or to US GAAP, neither should be considered singly or as an alternative to the net profit, as a measure of the operating performance, or as an alternative to operating cash flows, as a measure of liquidity. The Adjusted Net Profit is used by us as an additional measure of the performance of our operations and should not be used to replace our results. Other companies may calculate their Adjusted Net Profit in a different manner. Thus, the Adjusted Net Profit has limitations that impair its use as a measure of our profitability, given that it doesn t consider certain costs and expenses arising from our business, which could significantly affect our profits.

QUARTELY STATEMENTS OF INCOME (R$ million) Company Consolidated 1Q17 1Q18 1Q17 1Q18 Revenue from sales and/or services Revenue from sales and/or services 169,0 171,9 358,5 386,3 Gross revenue from sales and/or services 194,8 197,6 390,5 420,4 Taxes and returns (25,8) (25,6) (32,0) (34,0) Costs of goods and/or services sold (137,8) (125,2) (281,4) (285,8) Gross profit 31,2 46,7 77,1 100,5 Selling expenses (8,1) (8,9) (28,0) (31,2) General and administrative expenses (10,0) (8,4) (22,8) (20,6) Other operating expenses (10,9) (0,9) (17,2) (11,7) Equity pickup 1,9 3,3 - (0,3) Income before finance income (costs) 4,1 31,8 9,1 36,7 Finance income 15,5 2,6 21,1 22,8 Finance costs (14,1) (6,2) (23,0) (27,3) Income (loss) before income taxes 5,5 28,2 7,2 32,2 Current income tax and social contribution taxes - (4,4) (7,7) (9,6) Deferred income tax and social contribution taxes 2,1 (4,1) 8,5 (2,3) Net income for the period 7,6 19,7 8,0 20,3 Net (loss) income from discontinued operations - - - - Net income for the period 7,6 19,7 8,0 ### 20,3 Income (loss) attributable to: Controlling shareholders 7,6 19,7 7,6 19,7 Noncontrolling Interest - - 0,4 0,6

QUARTERLY STATEMENTS OF CASH FLOWS (R$ million) Company Consolidated 1Q17 1Q18 1Q17 1Q18 Cash flows from operating activities Cash from operations 19,4 40,7 42,8 63,4 Profit (loss) before income tax and social contribution 5,5 28,2 7,2 32,2 Income before income and social contribution taxes, Reconciliation of income before income and social contribution taxes with cash provided by operating activities Depreciation 10,5 9,4 18,0 16,8 Write-off of property, plant and equipament 0,1-0,1 0,2 Amortization 1,6 1,5 10,2 12,0 Restatement of judicial deposits (0,6) (1,4) (0,6) (1,4) Provision for asset obsolescence - - (0,3) - Stock options - 0,7-0,7 Provision for stock obsolescence - - (0,6) (0,9) Provisions (0,6) 0,1 (0,4) (0,4) Allowance for doubtful accounts (0,1) (0,3) (0,1) (2,0) Equity pickup (1,9) (3,3) - 0,3 Derecognition of financial liabilities (8,8) - (8,8) - Interest expense on debentures, loans and financing 13,2 5,9 17,0 11,9 Interest and exchange differences on advances and leases 0,2-0,3 (8,6) Interest and exchange differences on intercompany loans - - - 0,6 Other exchange differences 0,3 (0,1) 0,8 2,0 Changes in assets and liabilities (33,3) (14,1) (53,0) (16,4) Account receivable (24,9) (3,6) (0,3) 17,1 Taxes recoverable (2,8) (6,0) (6,9) (7,3) Inventories 3,5 (5,6) 4,2 (5,0) Judicial deposits 0,8 3,2 0,8 3,3 Other account receivables (1,2) (3,0) (8,3) 1,3 Receivables from related parties - 5,3 - - Trade accounts payable (10,3) (2,8) (30,7) (17,5) Payroll, provisions and social charges payable (1,3) (2,7) (3,2) 0,8 Taxes, charges and contributions payable 3,4 5,8 3,0 1,9 Advance from customers and other accounts payables 0,4 0,2 (4,8) (1,1) Payment of labor, civil and tax contingencies - (0,9) - (1,6) Payment of income and social contribution taxes (0,9) (4,0) (6,8) (8,3) Cash provided by (used in) operating activities (13,9) 26,6 (10,2) 47,0 Cash flows from investing activities Acquisition of PPE (2,7) (6,6) (4,9) (9,4) Acquisition of intangible assets (0,5) (1,4) (4,0) (6,4) Marketable securities 0,1 (0,2) 5,9 (0,2) Capital increase in subsidiaries (1,4) (0,8) - - Net cash provided by (used in) investing activities (4,5) (9,0) (3,0) (16,0) Cash flows from financing activities Interest on equity paid (13,2) - (13,2) - Treasury shares (3,7) (1,9) (3,7) (1,9) Lease payment (1,9) (0,9) (2,6) (1,7) Payment of interest on Financing - - (0,2) (0,1) Financing payment - - (1,7) (1,7) Repayment of loans - - (8,5) (8,7) Payment of interest on loans - - (1,5) (1,3) Cash provided financing activities (18,8) (2,8) (31,4) (15,4) Increase (decrease) in cash and cash equivalents (37,2) 14,8 (44,6) 15,6 Cash balances and cash equivalents Cash and cash equivalents at the beginning of the period 252,5 165,8 394,8 296,9 Effect of changes in exchange rates on cash and cash equivalents h - - 3,3 1,1 Cash and cash equivalents at the end of the year 215,3 180,6 353,5 313,6 Net increase (decrease) in cash and cash equivalents (37,2) 14,8 (44,6) 15,6

BALANCE SHEETS (In million of reais) Company Consolidated ASSETS Dec 2017 Mar 18 Dec 2017 Mar 18 Current assets Cash and cash equivalents 165,8 180,6 296,9 313,7 Marketable securities - - 16,7 17,2 Trade accounts receivable 121,3 121,8 335,1 311,4 Receivables from related parties 7,7 2,4 - - Taxes recoverable 11,8 12,9 51,5 58,6 Inventories 47,6 53,2 118,3 124,3 Other assets 4,7 7,8 40,2 40,1 Subtotal of current assets 358,9 378,7 858,7 865,3 Assets available for sale 0,8 0,8 0,8 0,8 359,7 379,5 859,5 866,1 Noncurrent assents Long-term assets 102,8 97,6 179,3 175,3 Trade accounts receivable 13,0 13,1 18,1 17,5 Marketable securities 0,7 0,9 0,7 0,9 Judicial deposits 31,5 29,7 38,3 36,5 Taxes recoverable 21,8 22,4 22,5 23,1 Deferred income and social contribution taxes 34,7 30,6 61,3 58,7 Other accounts receivable 1,1 0,9 38,4 38,6 Investments 727,3 723,0 39,0 38,8 Property, plant and equipment 185,3 183,0 364,3 357,4 Intangible assets 24,4 24,3 617,7 615,8 1.039,8 1.027,9 1.200,3 1.187,3 Total Assets 1.399,5 1.407,4 2.059,8 2.053,4 Company Consolidated LIABILITIES AND EQUITY Dec 2017 Mar 18 Dec 2017 Mar 18 Current liabilities Trade accounts payables 28,7 29,2 99,7 85,0 Payables to related parties 4,9 2,2 - - Loans, financing, debentures and leases payable 127,8 132,8 255,9 262,6 Payroll, provisions and social charge payable 37,0 34,4 63,9 64,5 Taxes, charges and contributions payable 6,6 8,3 11,3 14,4 Advance from customers and other accounts payable 2,7 2,8 17,4 16,9 Noncurrent liabilities 207,7 209,7 448,2 443,4 Loans, financing, debentures and leases payable 199,6 199,6 549,6 542,6 Provisions 13,2 12,4 17,4 15,4 Deferred income and social contribution taxes - - 36,8 36,6 Other accounts payable - - 17,1 17,5 212,8 212,0 620,9 612,1 Total liabilities 420,5 421,7 1.069,1 1.055,5 Equity Capital 904,5 904,5 904,5 904,5 Capital reserves and treasury shares (2,3) (3,5) (2,3) (3,5) Income reserves 137,5 127,2 137,5 127,2 Cumulative translation adjustments (71,3) (72,8) (71,3) (72,8) Proposed additional dividend distribution 10,6 10,6 10,6 10,5 profit in the period - 19,7-19,7 Equity attributable to controlling shareholdes 979,0 985,7 979,0 985,6 Noncontrolling Interest - - 11,7 12,3 accumulated profits - - - - Total equity 979,0 985,7 990,7 997,9 Total liabilities and equity 1.399,5 1.407,4 2.059,8 2.053,4