From time to time, Santos Brasil Participações S.A. discloses so-called non-GAAP financial measures, primarily EBITDA. Pursuant to one of the acceptable alternatives of the CVM Circular No. 1 of February 22, 2006, EBITDA may be defined as operating income (loss) plus net financial expenses plus depreciation and amortization. EBITDA does not represent cash flows for the periods presented and should not be considered as an alternative to net income, as an indicator of the Company’s operating performance or as an indicator of liquidity. EBITDA does not have a standardized meaning and Santos Brasil Participações S.A. definition of EBITDA may not be comparable to EBITDA as used by other companies.

Although the EBITDA does not provide, according to the Brazilian Accounting Principles (BR GAAP) or the U.S. Accounting Principles (US GAAP), measures of the operational cash flows, Santos Brasil Participações S.A. management uses EBITDA to measure its operating performance. Additionally, the Company management believes that disclosure of EBITDA can provide useful information to investors, financial analysts and the public in their review of the Company’s operating performance and its comparison to the operating performance of other companies in the same industry and other industries.

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