EARNINGS RELEASE 4Q18

Curitiba, February 12, 2018 – RUMO S.A. (B3: RAIL3) (“Rumo”) today announces its results for the fourth
quarter of 2018 (4Q18), including October, November, and December, and for FY18. The results are consolidated
in accordance with the accounting criteria adopted in Brazil and International Financial Reporting Standards (IFRS).
The comparisons in this report consider 4Q18 and 4Q17, and fiscal years 2018 and 2017, unless otherwise
indicated.

Rumo 4Q18 and 2018 Highlights

• In 2018, adjusted EBITDA reached R$3,242 million, 17.6% higher than in 2017. Adjusted EBITDA margin
advanced 2.4 p.p. year-over-year. In 4Q18, adjusted EBITDA came to R$796 million, 8.9% higher than
in 4Q17.
• Total transported volume in 2018 reached 56.36 billion RTK, 13.4% higher than in 2017. In 4Q18, volume
reached 14.9 billion RTK, up 11.9% year-over-year.
• For the first time since 2015, Rumo posted a net income of R$273 million in FY18 and generated cash
before amortization and funding, facts that reinforce its turnaround consolidation. Leverage reached 2.2x
broad net debt/LTM adjusted EBITDA at the end of 2018, versus 2.3x in 3Q18 and 2.6x in 2017.
• In 2018, Capex totaled R$2,020 million, in line with our projection for the year. Out of this total, R$419
million was invested in 4Q18.

Summary of financial
4Q18 4Q17 Chg.% 2018 2017 Chg.%
(Amounts in R$ MM)
14.943 13.350 11.9% Total transported volume (million RTK) 56,364 49,690 13.4%
2.786 3.373 -17.4% Total volume loaded (TU ‘000) 11,401 13,133 -13.2%
1.647 1.592 3.4% Net revenue 6,585 5,946 10.7%
497 382 30.2% Gross profit 2,119 1,725 22.8%
30.2% 24.0% 6.2 p.p. Gross margin (%) 32.2% 29.0% 3.2 p.p.
(90) (100) -9.4% Sales, general, and administrative expenses (313) (311) 0.8%
(51) 0.2 >100% Other op, revenues (expenses), and equity (55) 0.9 >100%
356 282 26.2% pickup
Operational profit 1,751 1,415 23.7%
367 448 -1.9% Depreciation and amortization 1,419 1,341 5.8%
723 730 -1.0% EBITDA 3,170 2,757 15.0%
43.9% 45.9% - 2 p.p. EBITDA margin (%) 48.1% 46.4% 1.8 p.p.
72 - >100% Provision for impairment West Network 72 0 >100%
796 730 8.9% Adjusted EBITDA 3,242 2,757 17.6%
48.3% 45.9% 2.4 p.p. Adjusted EBITDA Margin (%) 49.2% 46.4% 2.9 p.p.
137 (57) >100% Net profit (loss) 273 (258) >100%
8.3% -3.6% 11.9 p.p., Net margin (%) 4.1% -4.3% 8.5 p.p.

419 730 -42.6% Capex 2,020 2,154 -6.2%

Conference Call Investor Relations

E-mail: ir@rumolog.com
English* - 2:00 p.m. (Brasília time) Phones: +55 41 2141-7555
*With simultaneous translation into Portuguese Website: ri.rumolog.com
February 13, 2018 (Wednesday)
Phones (BR): + 55 11 3193 1001
+ 55 11 2820 4001
Phones: (US): +1 646 828 8246
+1 646 291 8936
Code: RUMO

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 Earnings Release
4Q18 and 2018

1. Letter from the CEO

This year was remarkable for Rumo. The results we delivered in 2018 consolidate a 4-year turnaround
and represent the achievement of the ambitious objectives defined when we merged with ALL in 2015.
For the first time, Rumo posted significant net income and positive free cash flow, leaving behind
periods of cash consumption while reaching comfortable 2.2x net debt/ LTM EBITDA, ready to support
future Capex plan.

2018 was not easy. In May, the national truckers’ strike compromised our terminals supply and resulted
in loss of volume and EBITDA that quarter. At the same time, the corn crop, particularly in the South
Region, fell short of expectations. Even so, we delivered results very close to the guidance ceiling on
the back of a strong soybean crop, efficiency and capacity gains,

As for 2019, we maintain committed to delivering our long-term guidance announced to the market
three years ago. The year had a very positive start with soybean harvest beginning in early January,
which is normally expected at the end of the month. Prospects for the corn crop in the second half of
the year are favorable as well. Our operations are ready to meet the growing demands of agribusiness
and other sectors of Brazilian economy, which are expected to record growth in 2019.

I am very pleased with our 2018 results as well as with the performance of the Rumo team, who
executed the business plan with discipline. As a result, Rumo heads toward the end of its turnaround
cycle to pursue a new one – the growth cycle. In this new cycle, we will continue doing our best to
pursue good projects and grow our business, while delivering robust return to our shareholders.

Julio Fontana Neto

CEO of Rumo

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 Earnings Release
4Q18 and 2018

1. 4Q18 and 2018 Executive Summary

In 2018, Rumo’s ajusted EBITDA reached R$3,242 million, 17.6% higher than in 2017. In 4Q18, adjusted
EBITDA advanced 8.9% to R$796 million, bolstered by higher transported volumes and greater cost efficiency.
In 2018, variable cost increase lagged volume growth, mainly due to continued lower fuel consumption
(Liters/GTK: -7.1%). In addition, Rumo continues evidencing its ability to increase volumes without raising fixed
costs. As a result, the adjusted EBITDA margin reached 49.2% in 2018, 2.9 p.p. higher than in 2017.

Volume transported by Rumo reached 56.36 billion RTK in 2018, up 13.4% year-over-year. This result
reflected a higher capacity enabled by Capex plan, also offsetting the effects of the truckers’ strike in May. In 4Q18,
Rumo transported 11.9% higher volume versus 4Q17, effect of greater volumes of agricultural and industrial
products, especially from fertilizer transportation in the North Operation. November and December recorded
favorable volumes due to the prospects of 2019 soybean crop early harvest, thereby boosting corn exports during
this period.

Rumo’s grain volume continues increasing to the Port of Santos (SP). In 2018, the Company delivered 10%
growth in its volume transported to the Port of Santos since 2017, sustaining its market share at 53%. On the other
hand, in 4Q18, Rumo’s transported volume advanced 6%, but market share decreased by 7 p.p. since the volume
of grains exported by Port of Santos grew by 17%. This evidences exports under pressure in 4Q18. In an attempt
to export larger amounts of new soybean crop, railway capacity was exceeded which resulted in loss of market
share. Rumo will continue investing to increase its transportation capacity and raise its market volume gains.

Rumo’s Volume and Market Share Evolution in Grain Transportation:

Port of Santos (SP)

(Millions of tons and %)

Source: Marine Agency

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 Earnings Release
4Q18 and 2018

In 2018, South Operation gained 5 p.p. market share in grains transported to the ports of Paranaguá (PR)
and São Francisco do Sul (SC). This operation is still characterized by a low market share, evidencing volume
growth opportunities in the future as the Company adds capacity. Quarter-over-quarter, we can see a 2 p.p. drop
in the market share volumes, although volume grew by 18%.

Ports of Paranaguá (PR) and São Francisco do Sul (SC)

(Millions of tons and %)

Source: Marine Agency

Evidencing its turnaround consolidation, Rumo, for the first time since 2015, posted in its annual results
a net income of R$273 million. In 4Q18, it totaled R$137 million. Also, for the first time Rumo recorded
cash generation before funding and amortizations of R$64 million in 2018. In addition, the Company
decreased its indebtedness to 2.2x net debt/ adjusted EBITDA. This result was driven by consistent
operational execution and financial results evolution that showed significant improvement, reaching a net expense
of R$143 million. In addition, it mirrored the interest rate curve decrease which resulted in MTM positive effects
and the initiatives to reduce debt average cost.

Scenario in 2019 tends to be positive for agribusiness. Agroconsult, in its estimates for 2018/2019 crops,
indicates increased grain production in Brazil and in the State of Mato Grosso, except for the soybean crop in
Brazil, which should decrease by 2% due to unfavorable planting conditions in the South Region. On the other
hand, the corn crop is expected to grow 18% in Brazil and 9% in the State of Mato Grosso, which is the main
region of origin for grains transported by the Company. Rumo continues increasing its capacity to meet a growing
demand for grain transportation by Brazilian ports.

Soybean Production Forecast Corn Production Forecast

(million tons) (million tons)

Source: Agroconsult

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 Earnings Release
4Q18 and 2018

2. Consolidated Operating and Financial Indicators

Summary of financial information

4Q18 4Q17 Chg.% 2018 2017 Chg.%
(Amounts in R$ MM)
14,943 13,350 11.9% Total transported volume (million RTK) 56,364 49,690 13.4%
12,324 11,117 10.9% Agricultural products 46,450 41,442 12.1%
2,619 2,233 17.3% Industrial products 9,914 8,248 20.2%
89.7 95.2 -5.8% Average transportation yield (R$/000 RTK) 97.4 96.2 1.2%
2,786 3,373 -17.4% Total volume loaded (TU ‘000) 11,401 13,133 -13.2%
27 26 3.6% Average loading yield (R$/TU) 27 25 5.6%
1,647 1,592 3.4% Net operating revenue 6,585 5,946 10.7%
1,433 1,332 7.6% Transportation 5,715 4,994 14.5%
76 88 -14.1% Port Loading 304 331 -8.2%
138 172 -20.1% Other² 566 622 -9.0%
723 730 -1.0% EBITDA 3,170 2,757 15.0%
43.9% 45.9% -2 p.p EBITDA Margin (%) 48.1% 46.4% 1.8 p.p
72 - Provision for impairment West Network 72 -
796 730 8.9% Adjusted EBITDA 3,242 2,757 17.6%
48.3% 45.9% 2.4 p.p Adjusted EBITDA Margin (%) 49.2% 46.4% 2.9 p.p
Note²: Includes revenue from the right of way of other railways, revenue from sugar transportation using other railways, or road
transportation and revenue from volumes contracted, but not executed, according to commercial agreements (take or pay).

Rumo Consolidated Transported Volume

Transported Volume (Million RTK) and Average Railroad Transportation Yield (R$/000 RTK)

Operational figures
4Q18 4Q17 Chg.% 2018 2017 Chg.%
(Amounts in R$ MM)
14,943 13,350 11.9% Total transported volume (million RTK) 56,364 49,690 13.4%
12,324 11,117 10.9% Agricultural products 46,450 41,442 12.1%
1,484 971 52.9% Soybean 18,138 14,419 25.8%
1,595 1,565 1.9% Soybean meal 6,372 5,823 9.4%
7,512 7,306 2.8% Corn 16,433 16,415 0.1%
880 1,067 -17.5% Sugar 3,529 3,957 -10.8%
760 189 >100% Fertilizers 1,862 674 >100%
93 19 388.4% Wheat 117 154 -24.3%
2,619 2,233 17.3% Industrial products 9,914 8,248 20.2%
1,153 1,112 3.7% Fuels 4,540 4,364 4.0%
647 445 45.5% Wood, pulp, and paper 2,179 1,167 86.7%
592 440 34.6% Containers 2,303 1,765 30.5%
226 236 -4.2% Other 892 952 -6.3%

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 Earnings Release
4Q18 and 2018

Results by Business Unit

Business Units
The business units (reporting segments) are organized as follows:

• North Operation North Network, Paulista Network, and Port Operation in Santos
• South Operation West Network and South Network
• Container Operation Container operations including Brado Logística

Results by Business Unit North South Container

Consolidated
4Q18 Operation Operation Operations
Transported volume 10,684 3,667 592 14,943
Net revenue 1,244 335 68 1,647
Cost of services (705) (367) (79) (1,150)
Gross profit 539 (32) (10) 497
Gross margin (%) 43.3% -9.5% -15.3% 30.2%
Sales, general, and administrative expenses (65) (16) (9) (90)
Other operating revenues (expenses) and equity pickup 20 (78) 8 (50)
Depreciation and amortization3 244 108 15 367
EBITDA 738 (19) 4 723
EBITDA Margin (%) 59.3% -5.7% 5.9% 43.9%
Provision for impairment West Network - 72 - 72
Adjusted EBITDA 738 54 4 796
Adjusted EBITDA margin (%) 59.3% 16.1% 5.9% 48.3%

Results by Business Unit North South Container

Consolidated
2018 Operation Operation Operations
Transported volume 39,308 14,752 2,303 56,364
Net revenue 4,913 1,412 259 6,585
Cost of services (2,744) (1,421) (301) (4,466)
Gross profit (loss) 2,170 (9) (42) 2,119
Gross margin (%) 44.2% -0.6% -16.2% 32.2%
Sales, general, and administrative expenses (223) (63) (28) (313)
Other operating revenues (expenses) and equity pickup 26 (97) 15 (55)
Depreciation and amortization3 948 416 56 1,419
EBITDA 2,921 248 1 3,170
EBITDA Margin (%) 59.5% 17.6% 0.4% 48.1%
Provision for impairment West Network - 72 - 72
Adjusted EBITDA 2,921 320 1 3,242
Adjusted EBITDA margin (%) 59.5% 22.7% 0.4% 49.2%
Note³: Depreciation and amortization are allocated as the cost of services provided and as general and administrative expenses.
administrativas.

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 Earnings Release
4Q18 and 2018

North Operation

4Q18 4Q17 Chg. % Operational figures 2018 2017 Chg. %

10,684 9,336 14.4% Total transported volume (million RTK) 39,308 33,93 15.8%
9,697 8,590 12.9% Agricultural products 35,657 2
31,37 13.7%
43 - >100% Soybean 11,089 1
9,620 15.3%
1,451 1,488 -2.5% Soybean meal 5,843 5,479 6.6%
7,255 6,719 8.0% Corn 15,827 14,75 7.3%
384 383 0.2% Sugar 1,741 0
1,522 14.4%
563 - >100% Fertilizers 1,158 - >100%
987 746 32.3% Industrial products 3,651 2,561 42.6%
621 578 7.5% Fuels 2,487 2,393 4.0%
366 168 >100% Others 1,163 168 >100%
94.3 101.3 -6.9% Average transportation yield 103.5 102.7 0.4%

2,786 3,373 -17.4% Total volume loaded (TU ‘000) 11,401 13,13 -13.2%
27.0 26.1 3.4% Average loading yield (R$/TU) 1
26.6 3
25.2 5.6%

In 2018, total volume transported by the North Operation was 15.8% higher than in 2017, reaching 39.3
billion RTK. In 4Q18, total volume grew by 14.4% to 10.7 billion RTK. Higher capacity enabled the Company
to meet a higher demand for soybean transportation which, coupled with a strong willingness to export corn and
an expressive fertilizer volume, drove the 13.7% increase in agricultural transported volumes in the year. The
volume of industrial products raised by 42.6% mainly due to a new operation of pulp transportation. Port loading
volume declined due to an unfavorable scenario for sugar exports.

4Q18 4Q17 Chg. % Financial data 2018 2017 Chg. %

1,244 1,212 2.6% Net operating revenue 4,913 4,440 10.7%

1,040 954 9.0% Transportation 4,069 3,496 16.4%
932 885 5.3% Agricultural products 3,717 3,261 14.0%
109 70 56.5% Industrial products 352 235 49.5%
76 88 -14.1% Port loading 304 331 -8.2%
128 170 -24.6% Other revenues4 541 613 -11.8%
(705) (725) -2.8% Cost of services (2,743) (2,558) 7.2%
(282) (291) -3.2% Variable costs (1,091) (1,043) 4.6%
(179) (167) 7.2% Fixed costs (705) (682) 3.4%
(243) (266) -8.4% Depreciation and amortization (948) (834) 13.7%
539 488 10.6% Gross Profit 2,170 1,882 15.3%
43.3% 40.2% 3.1 p.p. Gross Margin (%) 44.2% 42.4% 4.2%
(65) (74) -11.3% Sales, general, and administrative expenses (222) (220) 1.1%
20 (8) >100% Other op. revenues (expenses) and equity pickup 26 (5) >100%
243 266 -8.5% Depreciation and amortization 948 837 13.3%
738 672 9.7% EBITDA 2,921 2,493 17.2%
59.3% 55.4% 4.0 p.p. EBITDA margin (%) 59.5% 56.1% 3 p.p.
Note4: Includes revenue from the right of way of other railways, revenue from sugar transportation using other railways or road
transportation, and revenue from volumes contracted but not executed according to commercial agreements (take or pay).

EBITDA reached R$2,921 million in 2018, up 17.2% from 2017 and R$738 million in 4Q18, due to higher
volumes coupled with improved cost efficiency. Variable cost increase lagged volume growth chiefly due to lower
sugar volume transported by highways and other railways. The fuel cost annual increase was partially offset by
7.1% improved efficiency of locomotives’ consumption (Liters/GTK). Fixed cost was up 3.4% from 2017, lower
than inflation in the period. EBITDA margin reached 59.5% in 2018, 3 p.p. higher than in 2017.

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 Earnings Release
4Q18 and 2018

South Operation

4Q18 4Q17 Chg. % Operational figures 2018 2017 Chg. %

3,667 3,574 2.6% Transported volume (million RTK) 14,752 13,994 5.4%
2,627 2,527 4.0% Agricultural products 10,793 10,071 7.2%
1,441 971 48.4% Soybean 7,049 4,799 46.9%
144 77 87.4% Soybean meal 529 345 53.4%
257 587 -56.3% Corn 606 1,664 -63.6%
496 684 -27.4% Sugar 1,788 2,435 -26.6%
194 189 2.9% Fertilizers 668 674 -0.9%
95 19 >100% Other 153 154 -0.9%
1,039 1,047 -0.8% Industrial products 3,960 3,923 0.9%
532 534 -0.5% Fuel 2,053 1,972 4.1%
281 277 1.6% Wood, pulp, and paper 1,016 999 1.7%
226 236 -4.1% Others 892 952 -6.4%
88.5 88.3 0.2% Average transportation yield 94.0 89.7 4.8%

In 2018, South Operation’s transported volume was 5.4% higher than in 2017, totaling 14.7 billion RTK. In
4Q18, transported volume reached 3.6 billion RTK, up 2.6% year-over-year. Excellent soybean crop boosted
transported volume throughout the year. On the other hand, the corn crop shrinkage and sugar/ethanol ratio more
favorable to the latter constrained agricultural volume growth in 2018. The transportation of industrial products
recorded an annual growth of 0.9%.

4Q18 4Q17 Chg. % Operational figures 2018 2017 Chg. %

335 325 2.9% Net operating revenue 1,412 1,283 10.1%

325 323 0.7% Transportation 1,387 1,274 8.9%
211 208 1.8% Agricultural products 963 866 11.1%
114 115 -1.3% Industrial products 425 408 4.2%
10 3 >100% Other revenues5 25 9 >100%
(366) (408) -10.2% Cost of services (1,421) (1,358) 4.7%
(92) (86) 7.7% Variable costs (362) (311) 16.3%
(166) (156) 5.9% Fixed costs (644) (605) 6.4%
(108) (166) -34.6% Depreciation and amortization (415) (441) -5.9%
(32) (83) -61.5% Gross profit (9) (74) -88.3%
-9,5% -25,5% 16.0 p.p. Gross margin (%) -0.6% -5.8% 5.2 p.p.
(16) (20) -19.8% Sales, general, and administrative expenses (63) (68) -7.9%
(78) 8 >100% Other op. revenues (expenses) and equity pickup (97) 1.3 >100%
108 166 -34.9% Depreciation and amortization 416 441 -5.7%
(19) 71 >100% EBITDA 248 300 -17.3%
-5.7% 21.8% -27.2 p.p. EBITDA Margin (%) 17.6% 23.4% -5.9 p.p
72 - >100% Provision for impairment West Network 72 - >100%
54 71 -23.5% Adjusted EBITDA 320 300 6.5%
16.1% 21.8% -5.6 p.p. EBITDA margin (%) 22.7% 23.4% -0.8 p.p.,
Note 6: Includes revenue from volumes contracted but not executed according to commercial agreements (take or pay)

The South Operation’s Adjusted EBITDA came to R$320 million in 2018, up 6.5% from 2017 and R$54
million in 4Q18, down 23% compared to R$ 71 million in 4Q17. Net operating revenue 10% higher year-over-
year reflects gains of capacity to higher captured volumes. Variable cost increase in the year surpassed volume
and net revenue growth, evidencing this operation’s greater sensitiveness to fuel average cost increase, not offset
by an efficiency gain of 7.1% (Liters/GTK). Fixed cost increased 6.4% versus 2017, due to the end of payroll tax
relief and lower tax credits recognized in 2018 (R$25 million less when compared to 2017). Adjusted EBITDA
margin reached 22.6% in 2018, 0.8 p.p. lower than in 2017.

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 Earnings Release
4Q18 and 2018

Container Operations

4Q18 4Q17 Chg. % Operational figures 2018 2017 Chg. %

17,900 12,750 40.4% Total volume (containers) 66,219 57,108 16.0%

3.8 3.1 22.6% Intermodal average yield 3.9 2.9 34.5%
592 440 34.7% Total volume (million RTK) 2,303 1,765 30.5%

Volume of containers transported totaled 66,219 containers in 2018, 16% higher than in 2017. In 4Q18,
this volume grew by 40% to 17,900 containers. The business strategy of taking advantage of backhaul, to
increase transportation volumes in the domestic market, and import cargoes has been increasing container
operations profitability.

4Q18 4Q17 Chg. % Financial data 2018 2017 Chg. %

6
68 55 24.5% Net operating revenue 259 224 16.1%
(79) (78) 0.9% Cost of services (301) (306) -1.6%
(30) (23) 30.0% Variable costs (112) (93) 20.2%
(34) (39) -14.2% Fixed costs (134) (150) -10.9%
(15) (16) -3.6% Depreciation and amortization (56) (63) -11.5%
(10.2) (23) -55.5% Gross loss (42) (83) -49.5%
-14.9% -41.7% 26.8 p.p. Gross margin (%) -16.1% -37.0% 20.9 p.p.
(9) (6) 49.1% Sales, general, and administrative expenses (28) (23) 23.8%
8 0.2 >100% Other op. revenues (expenses) and equity pickup 15 5 >100%
15 16 -6.0% Depreciation and amortization 56 63 -11.9%
3.6 (12) >100% EBITDA 0.9 (37) >100%
5.1% -22.6% 27.7 p.p. EBITDA margin (%) 0.4% -16.7% 17.0 p.p.
Note6: Includes revenue from service units.

EBITDA from Container Operations was positive for the first time, totaling R$0.9 million in 2018. In 4Q18,
EBITDA was R$3.6 million. The improved operations drove a 16.1% net revenue increase. Variable cost
increase surpassed volume growth in RTK due to higher fuel cost. The selling of a few unprofitable business units
helped cutting fixed costs by 11% year-over-year.

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 Earnings Release
4Q18 and 2018

3. Other Results
Breakdown of Costs of Services Rendered
Composição dos Custos dos Serviços Prestados
Consolidated costs
4Q18 4Q17 Chg. % 2018 2017 Chg. %
(amounts in R$ MM)

(1,150) (1,210) -5.0% Consolidated costs (4,466) (4,222) 5.8%

(404) (400) 1.0% Variable costs (1,565) (1,447) 8.1%
(255) (228) 11.8% Fuel and lubricants (969) (793) 22.2%
(86) (55) 57.3% Own logistic costs7 (218) (205) 6.5%
(63) (117) -46.2% Third-party freight costs8 (378) (449) -16.0%
(379) (363) 4.4% Fixed costs (1,482) (1,437) 3.1%
(37) (32) 14.4% Maintenance (131) (161) -18.5%
(189) (168) 12.6% Payroll expenses (704) (636) 10.8%
(51) (52) -1.5% Leasing and concessions (212) (201) 5.4%
(9) (11) -11.5% Operational leasing (35) (60) -41.3%
(64) (66) -2.9% Third-party services (250) (243) 2.9%
(28) (34) -17.4% Other operational costs (149) (135) 10.4%
(365) (447) -18.3% Depreciation and amortization (1,411) (1,334) 5.8%
Note7: Own logistics costs include sand, rights of way, terminals, and other variable costs.
Note8: Third-party freight costs include contracts for road and railway freights with other
operators.

Variable costs totaled R$1,565 million in 4Q18, up 8.1% from 2017. The 13.4% increase in the volume
transported in the year drove higher variable costs. The 16% increase in average diesel cost was partially offset
by efficiency gains in locomotives’ consumption (Liters/GTK: -7.1%). In addition, higher fertilizer volumes in the
North Operation contributed to increasing logistics expenses (transshipment at Termag). Third-party freight costs
declined due to lower sugar volume transported via highway and other railways.

Fixed costs totaled R$1,482 million in 2018, 3.1% higher than in 2017. This result reinforces the Company’s
operational leverage and cost dilution strategy. Personnel expenses variation is due to the end of payroll tax relief
and lower tax credits recognized in the year. In addition, costs due to depreciation and amortization increased
5.8% year-over-year.

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4Q18 and 2018

Financial Results

Financial results
4Q18 4Q17 Chg.% 2018 2017 Chg.%
(amounts in R$ MM)
(83) (319) -73.9% Cost of bank debt 9 (934) (1,286) -27.4%
(16) (33) -51.2% Charges over leasing (105) (131) -19.9%
(0,4) (3,1) -88.0% Charges on certificates of real estate receivables (5) (20) -74.8%
36 65 -44.1% Financial income from investments 180 220 -18.0%
(64) (291) -78.1% (=) Cost of broad net debt (863) (1,217) -29.1%
(46) (49) -6.7% Monetary variation on liabilities of concessions (186) (244) -23.7%
(18) (14) 30.8% Rates on contingencies and contracts (86) (68) 26.6%
(16) (39) -59.1% Other financial expenses (73) (135) -45.7%
(143) (392) -63.5% (=) Financial result (1,209) (1,665) -27.4%
Note9: Includes interest rates, foreign exchange variation, net result from derivatives and other debt charges.

The financial result in 4Q18 was a net expense of R$143 million, down 63.5% year-over-year. Debt cost
decreased as an effect of certain operations prepayment, replacement of more onerous debts with lower cost
debts, and decreased interest rate curve that resulted in positive MTM effects of R$129 million. Charges over
leasing and receivables certificates declined due to amortizations in these instruments without new relevant
funding. Financial investments yield fell 44% due to average cash decrease and CDI quarter-over-quarter interest
rate drop. Monetary variation on leasing and concession agreements reflects the SELIC interest rate adjustment
to the unpaid concession fees of the West and Paulista Networks, which are currently under litigation. Other
financial expenses include bank collaterals and other financial operations.

As a result of the efforts endeavored in 2018, the Company reduced by 27.4% its financial expenses, and by
29.1% the cost of its broad net debt.

Income Tax and Social Contribution

Income tax and social contribution
4Q18 4Q17 Chg. % 2018 2017 Chg. %
(amounts in R$ MM)
213 (110) >100% Income (loss) before IT / SC 541 (250) >100%
34% 34% 0 p.p., Theoretical rate IR / SC 34% 34% 0 p.p.
(72.4) 37.5 >100% Theoretical Income (expense) with IR / SC (184) 85 >100%
Adjustments to calculate the effective rate
Tax losses and temporary differences not
(52) (26) 97.3% recognized 10 (132) (175) -24.7%
50 28 77.9% Tax incentives arising from the North network11 50 74 -32.7%
0.6 (1.0) >100% Equity pickup 3.5 1.4 >100%
(2) 15 >100% Other effects (5,8) 5,7 >100%
(76) 53 >100% Income (expense) with IT / SC (268.4) (8.9) >100%
-35.5% -48.0% -25.9% Effective rate (%) -49.6% 3.6% -53.2 p.p.
(37) (10) >100% IT/SC current (67) (43) 54.6%
(39) 63 >100% IT/SC deferred (202) 34 >100%
Note10: We did not record deferred income tax and social contribution on tax losses in certain companies due to the lack of prospects for future
taxable income.
Note11: North Network enjoys the Amazon Development Office (SUDAM) benefit that entitles it to a 75% reduction in corporate income tax (rate
of 25%) until 2023.

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 Earnings Release
4Q18 and 2018

4. Loans and Financing

Broad gross debt at the end of 4Q18 was R$11.1 billion, 4.7% higher than 3Q18. Leverage reached 2.2x
(broad net debt/adjusted EBITDA), considering adjusted EBITDA of R$3.242 billion over the last 12
months. The balance of broad net debt came to R$7.2 billion, 2.8% lower than 3Q18.

Total indebtedness
4Q18 3Q18 Chg.%
(amounts in R$ MM)
Commercial banks 225 16 >100%
NCE 1,161 1,477 -21.4%
BNDES 3,648 3,060 19.2%
Debentures 501 511 -2.0%
Senior notes 2024 and 2025 5,059 4,981 1.6%
Total bank debt 10,594 10,046 5.5%
Leases 553 586 -5.5%
Certificate of real estate receivables - 14 -100.0%
Total broad gross debt 11,148 10,645 4.7%
Cash and cash equivalents and securities12 (3,016) (2,415) 24.9%
Net derivative instruments (892) (783) 14.0%
Total broad net debt 7,239 7,448 -2.8%
EBITDA LTM 3,242 3,177 2.1%
Leverage (broad net debt / EBITDA LTM) 2.2x 2.3x >100%

The following table gives a breakdown of the items that impacted Rumo’s consolidated debt.

Bank gross indebtedness

4Q18
(amounts in R$ MM)
Opening balance of broad net debt 7,448
Cash and cash equivalents and marketable securities12 (2,415)
Net derivative instruments (783)
Opening balance of broad gross debt 10,645
Items with cash impact 300
New funding 976
Amortization of principal (566)
Amortization of interest rates (110)
Items without cash impact 202
Provision for interest rates (accrual) 189
Monetary variation, MTM adjustments of debt, and others 13
Closing balance of broad gross debt 11,148
Cash and cash equivalents and marketable securities12 (3,016)
Net derivative instruments (892)
Closing balance of broad net debt 7,239
Note 12: The 4Q18 includes restricted cash linked to bank debts of R$31.3 million. The 3Q18 includes restricted cash from
bank debts totaling R$31.1 million.

Rumo is subject to certain restrictive covenants referring to its leverage level and debt service coverage in a few
of its contracts. Most restrictive provisions are verified at year end and refer to broad net debt. Broad net debt
includes bank debts, debentures, leases, real estate receivables certificates, and derivatives linked to credit
operations, less marketable securities, cash and cash equivalents. For December 31, 2018, the covenants were
defined for maximum leverage of 4.0x (broad net debt/LTM EBITDA), and minimum interest rate coverage index
of 1.4x EBITDA/Financial Result and minimum interest rate coverage index of 0.25x (Shareholders’ Equity/ Total
Assets).

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 Earnings Release
4Q18 and 2018

5. Capex

Investments
4Q18 4Q17 Chg.% 2018 2017 Chg.%
(amounts in R$ MM)
419 730 -42.6% Total investments 2.020 2.154 -6.2%
190 188 1.5% Recurring 802 778 3.0%
229 542 -57.8% Expansion 1,219 1,375 -11.4%

In 2018, Capex went down 6% to R$ 2,020 million, in line with announced guidance. In 4Q18, Capex totaled
R$419.1 million, down 42.6% from 4Q17. In 4Q18, recurring Capex came to R$190 million, up 1.5% year-over-
year, mainly due to mechanic and permanent way maintenance expenses. Expansion Capex came 57.8% lower
from 4T17, reaching R$229 million. In 4Q18, the main investments in capacity expansion were: (i) upgrade of
permanent way, by replacing tracks and ties; (ii) sidings extension preparing for 120-railcar train, (iii) infrastructure
improvements to remove restrictions and (iv) expansions of yards and terminals, to reduce the train dwell time
increasing operational productivity.

6. Cash Flow Statement

Below, Rumo’s consolidated cash flow statement. Marketable securities were considered as cash and cash
equivalents in this statement.

Indirect cash flow

4Q18 4Q17 Chg.% 2018 2017 Chg.%
(amounts in R$ MM)
796 730 8.9% Adjusted EBITDA 3.242 2,757 17.6%
(87) (102) -14.9% Working capital variations and non-cash effects (490) (290) 68.7%
26 14 79.7% Operating financial result 110 35 >100%
(a) 734 642 14.3% (=) Operating cash flow (FCO) 2,863 2,501 14.5%
(420) (622) -32.4% Capex (1,997) (2,045) -2.4%
(b) (192) (178) 7.5% Recurring (778) (769) 1.2%
(229) (443) -48.4% Expansion (1,219) (1,276) -4.5%
- - >100% Asset sale - 7 -100.0%
- (1) -100.0% Net cash from asset sale - (0.7) -100.0%
0 2 -100.0% Dividends Received 6 7 -3.7&
(c) (420) (621) -32.3% (=) Cash flow from investing activities (FCI) (1.990) (2,032) -2.1%
(d) 976 1,296 -24.7% Funding 3,113 3,786 -17.8%
(e) (566) (1,954) -71.1% Amortization of principal (3,649) (3,437) 6.2%
(110) (322) -65.9% Amortization of interest rates (875) (1,232) -28.9%
- - >100% Paid dividends (3) (2) 61.7%
(h) - 2,584 -100.0% Capital raise 0 2,584 -100.0%
- (0.2) -100.0% Derivatives Financial Instruments (29) (18) 61.3%
(0.9) 0.1 >100% Restricted Cash 112 (25) >100%
(12) - >100% Acquisition of non-controlling interest (12) - >100%
287 1,604 -82.1% (=) Cash flow from financing activities (FCF) (1,345) 1,656 >100%

(g) (0.3) 0.7 >100% Forex variation impact on cash balances 127 28 >100%
(f) 601 1,626 -63.1% (=) Net cash generated (consumed) (346) 2,153 >100%
2,384 1,704 39.9% (+) Total Cash (includes cash + marketable securities) 3,330 1,177 >100%
2,985 3,330 -10.4% opening
(=) Total Cash (includes cash + marketable securities) 2,985 3,330 -10.4%
closing
Metrics
543 464 16.9% (=) Cash generation after recurring capex (a+b) 2,085 1,732 20.4%
314 22 >100% (=) Cash generation after cash from investments (a+c) 872 469 86.1%

(=) Cash generation (consumption) before funding and

191 (300) >100% amortizations (f-e-d-g-h) 64 (808) >100%

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 Earnings Release
4Q18 and 2018

7. Operating and Financial Performance Indicators

Below, the historical trend of main operating and financial performance indicators.

Operating and Financial Performance Index 4Q17 4Q18 Chg. % 2017 2018 Chg. %

Consolidated
Operating ratio 82% 75% -8.5% 76% 73% -3,9%
Diesel consumption (liters/ '000 GTK) 4.43 4.07 -8.1% 4.48 4.16 -7.1%
Rail accidents (MM Train /Km) 15.4 14.5 -5.8% 15.4 14,5 -5,8%
Personal Accidents (accidents /MM MHW) 0.38 0.25 -34% 0.38 0.25 -34%

North operation
Grains from Rondonópolis (MT) – Santos (SP)
Cycle of railcars (days) 9.6 10.0 4.2% 9.8 10.2 4.1%
South operation
Grains from North PR – Ports Paranaguá (PR) and São Francisco do Sul (SC)
Cycle of railcars (days) 6.9 7.4 7.2% 7.2 7.6 5.6%
Note14: It only considers the variable costs of railway operations.

Operating Ratio: This index, which represents the portion of costs and expenses as a percentage of net revenue,
improved 8.5% in 4Q18 and 3.9% in the annual comparison, reflecting reduced fixed and variable unit costs.

Diesel Consumption: The 7.1% improvement in 2018 versus 2017 reflects higher efficiency in unitary diesel
consumption of new locomotives included in the operation. In addition, higher volume of grains transported in the
North Operation contributed to this result, since this commodity route has lower average diesel consumption
(liters/GTK), compared to sugar flows from the State of São Paulo.

Rail accidents: This index, which measures the number of accidents per million kilometers, improved 5.8% from
2017. Rumo continues reducing the number of rail accidents, thus generating greater operational efficiency.

Personal accidents: This index, which measures the number of accidents which required leave, improved 34%
between 2017 and 2018, reflecting the Company’s efforts to reduce personal accidents, in line with international
railways’ benchmarks.

Cycle time of railcars: This index increase is due to lower sugar volumes, which added grain railcar fleet
exceeding volume growth.

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 Earnings Release
4Q18 and 2018

8. Attachments

8.1 Financial Statements – Rumo

8.1.1 Balance Sheet

Balance sheet 12/31/18 09/30/18
(amounts in R$ MM)
Current assets 4,074 3,545
Cash and cash equivalents 142 72
Marketable securities 2,843 2,312
Trade receivables 417 363
Inventories 263 306
Peer company receivables 19 21
Income tax and social contribution 57 43
Other taxes recoverable 195 259
Other assets 137 169
Non-current assets 23,060 22,854
Trade receivable 21 22
Restricted cash 115 114
Deferred income tax and social contribution 1,046 1,028
Recoverable income tax and social contribution 260 281
Other taxes recoverable 797 703
Judicial deposits 369 347
Derivative and financial instruments 892 783
Other assets 104 108
Investments in associates 44 43
Property and equipment 11,917 11,904
Intangible 7,494 7,521
Total assets 27,134 26,399

Current liabilities 2,473 2,747

Loans, financing, and debentures 925 1,177
Leases 120 122
Certified real estate receivables - CRI - 14
Trade accounts payable 452 478
Labor and social security obligations 207 190
Income tax and social contribution taxes 8 3
Other payable taxes 47 44
Dividends payables 6 8
Leases and concessions 29 29
Payable to related parties 156 171
Deferred revenue 9 10
Other financial liabilities 338 312
Other payables 176 190
Non-current liabilities 16,366 15,482
Loans, financing, and debentures 9,669 8,869
Leases 433 464
Financial instruments and derivatives - -
Other payables 4 5
Provision for lawsuits 515 513
Leases and concessions 3,180 3,113
Deferred income tax and social contribution 2,437 2,380
Deferred revenues 42 44
Other payables 87 93
Shareholder’s equity 8,295 8,170
Total liabilities 27,134 26,399

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 Earnings Release
4Q18 and 2018

8.1.2 Income Statement

Income Statement
4Q18 4Q17 Chg.% 2018 2017 Chg.%
(amounts in R$ MM)
1,647 1,592 3.4% Net operating revenue 6,585 5,946 10.7%
(1,150) (1,210) -5.0% Cost of goods sold (4,466) (4,221) 5.8%
497 382 30.2% Gross profit 2,119 1,725 22.8%
(90) (100) -9.4% Sales, general, and administrative expenses (313) (311) 0.8%
(52) 3 >100% Other net operating income (expenses) (65) (3) >100%
(143) (392) -63.5% Net financial result (1,209) (1,665) -27.4%
2 (3) >100% Equity pickup 10 4 >100%
(76) 53 >100% Income tax and social contribution (268) (9) >100%
137 (57) >100% Net profit (loss) 273 (258) >100%
8.3% -3.6% 11.9 p.p. Net margin (%) 4.1% -4.3% 8.5 p.p.

8.1.3 Cash Flows

Accounting Cash Flow

4Q18 4Q17 2018 2017
(amounts in R$ MM)
213 (110) Profit before income tax and social contribution 541 (250)
440 449 Depreciation and amortization 1,491 1,342
(2) 3 Equity pickup (10) (4)
21 27 Provision for profit sharing and bonuses 93 82
(21) 1 Result on disposals of fixed assets and intangible assets (29) (0)
21 8 Provision for lawsuits 79 56
0 1 Provision (reversal) for losses on doubtful accounts (2) 12
2 2 Stock option plan 7 6
47 50 Leases and concessions 199 193
129 345 Interest, monetary, and exchange variation. Net 1,162 1,509
(7) (14) Other (31) (49)
841 762 (=) Adjustments 3,501 2,897
(27) (90) Trade receivables (32) (58)
(19) 12 Related parties, net 3 46
(51) (52) Taxes (131) (200)
42 (18) Inventories 24 8
(1) (15) Labor and social security payable (53) (36)
(27) 49 Suppliers (207) (37)
(26) (28) Leases and concessions payable (106) (112)
(49) (25) Lawsuits (150) (113)
17 30 Other financial liabilities 14 75
(7) (44) Other assets and liabilities. Net (159) (159)
(147) (181) (=) Changes in assets and liabilities (796) (585)
694 581 (=) Operational cash flow 2,705 2,311

(491) (1,575) Marketable securities 467 (2,046)

(1) 0 Restricted cash 112 (25)
0 2 Dividends received from subsidiaries and associated companies 6 7
(420) (622) Additions to property, plant and equipment, software, and other intangibles (1,997) (2,045)
- - Cash received from sales of other permanent assets - 7
(912) (2,195) (=) Net cash used in investing activities (1,411) (4,103)
976 1,296 Funding 3,113 3,786
(566) (1,954) Amortization of principal (3,649) (3,437)
(110) (322) Amortization of interest (875) (1,232)
- (0) Derivative financial instruments (29) (18)
(12) - Dividend paid (12) -
- - Funding (3) (2)
288 1,604 (=) Cash generated by (used in) financing activities (1,457) 1,681
(0) 1 Impact of Exchange variation in cash balance 127 28
69 (10) (=) Net increase (decrease) in cash and cash equivalents (36) (83)
72 188 Beginning balance of cash and cash equivalents 178 261
142 178 Final balance of cash and cash equivalents 142 178

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