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QUICKTAKE15June2026

GlobalInternet

GlobalInternet:Neverinterruptyouropponentwhileheismakingamistake

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CharlesGou

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Ashort,fictitiousstorydesignedtoteachamorallesson.ToparaphrasebenchmarkoperatorsArtificialAnalysis,thelaunchandsubsequentun-launchofAnthropic’sClaudeFable5(ostensiblybyorderfromtheUSDepartmentofCommerce,onnationalsecurity

grounds)wasthefirsttimethattheAIfrontiermovedbackwards.Ourbasecaseisthe

decisionwillbereversedbeforetoolong,andAnthropicretakesitspositionatthetopof

variouscharts.Buttheweekend’snewsisworththinkingaboutbeyondbenchmarkscores.

Toerrishuman;toreallyfoulthingsuprequiresacomputer.Weassumethereasonsfortheabout-facearelegitimate,butcan’thelpbutwonderhowAnthropicnowfeelsaboutcallingMythos“toodangeroustobereleasedtothepublic”,oraboutitsblogpostarguingforacoordinatedslowdowninglobalAIresearch.ThedeveloperfuroraroundClaude

Fable5throttlingperformanceontasksrelatedtoLLMresearchwaspartlydousedwhen

Anthropicremovedthethrottleovertheweekend,buttheironyofAndrejKarpathy(AI

pioneer,recentAnthropichire)andAmandaAskell(headofAnthropicpersonalityalignment)becomingtechnicallybarredfromusingClaudeFable5wasn’tlostonthecommunity.

AstrongargumentforsovereignAI.AnyonewhousesAImodelsregularlywillbefamiliarwithissueslikeservercongestionandratelimits.ButthenotionthatafrontierAImodel

cansimplybeswitchedoffonawhimfromacrossthepond-nomatterthereason-feels

morelikesomethingoutofaBondmovie.AsagenticAIcapabilitiesimprove,thesetoolswillbecomeembeddedinbothexistingservicesandnewworkflows.Astheseservicesbecomeincreasinglymission-critical,itwouldsurpriseusiflargeenterpriseandsovereignoperatorsoutsidetheUSdidn’tstartaskinguncomfortablequestionsaboutthedependabilityof

cloud-deployedAImodelswhereaccessisbeyondtheirimmediatecontrol.

AIneversleeps.Itprobablywasn’tanaccident

thatKimiandZ.ai

,twoAIlabsweconsiderfrontierinChina,announcednewmodelsovertheweekend.K2.7Codepromisedbetter

reasoningefficiencyandreasoningcapabilityupgrades.Z.ai

’sGLM-5.2meanwhile

positionsitselfagainstClaudeOpus4.8;bothonlinedeveloperfeedbackandourown

locally-hostedbenchmarktestsreturnedencouraginginitialresults.Realcounter-

argumentsremain,butonthemarginthesereleasessupporttheideathatChina’sleadinglabscancontinuetokeeppacewithglobalpeers.TheideathatChineseopen-weights

modelsmightnowoccupytherhetoricalhighgroundtooisanoveldevelopment.

AIinaneraofgeostrategiccompetition.WhathappensnexttoClaudeFable5?

Anthropiccalledtheepisodeamisunderstanding,andthere’sadecentchancetheUS

administrationlivesuptotheStreet’sfavouritefour-letteracronym…again.Thatsaid,

aninterestingprecedentwassetthat’sprobablynotbullishfortheUSSOTAlabs’global

aspirationsinusecaseswheredependabilityisimportant…orstockmarketnarratives

contingentontheirupcomingIPOsandcontinuedsuccess.WhenChineseregulatorsshookuptheirInternetsectorafewyearsago,valuationmultiplesinvestorswerewillingtoacceptcompresseddramatically.

SeetheDisclosureAppendixofthisreportforrequireddisclosures,analystcertificationsandotherimportantinformation.Alternatively,visitourGlobalResearchDisclosureWebsite.

FirstPublished:14Jun202621:13UTCCompletionDate:14Jun202621:13UTC

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INVESTMENTIMPLICATIONS

Wethinkadministration’sdecisiontorestrictfrontiermodelaccessbynationalityserveasareminderofthepotentialfor(geo)politicalnarrativestointersectwithAIdevelopment,especiallyasfrontierAIcapabilitiesbecomeevermorepowerful.

BERNSTEINTICKERTABLE

12Jun2026

TTM

AdjustedEPSAdjustedP/E(x)

Ticker

Rating

Cur

Closing Price

Price

Target

Rel.

Perf.

Cur2025A2026E2027E

2025A2026E2027E

700.HK(Tencent)

O

HKD

463.60

780.00

(49.9)%

CNY

28.09

30.00

34.91

14.2

13.3

11.5

BABA(Alibaba)

O

USD

112.82

180.00

(26.2)%

CNY

65.41

26.82

46.57

11.7

28.4

16.4

9988.HK(Alibaba)

O

HKD

110.20

176.00

(42.4)%

HKD

8.82

3.69

6.68

10.8

25.8

14.2

ASIAX

1,966.72

SPX

7,431.46

O-Outperform,M-Market-Perform,U-Underperform,NR-NotRated,CS-CoverageSuspendedSource:Bloomberg,Bernsteinestimatesandanalysis.

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DISCLOSUREAPPENDIX

I.REQUIREDDISCLOSURES

Referencesto"Bernstein"orthe“Firm”inthesedisclosuresrelatetothefollowingentities:BernsteinInstitutionalServicesLLC

(April1,2024onwards),SanfordC.Bernstein&Co.,LLC(preApril1,2024),BernsteinAutonomousLLP,BSGFranceS.A.(April1,

2024onwards),SanfordC.Bernstein(HongKong)Limited盛博香港有限公司,SanfordC.Bernstein(Canada)Limited,Sanford

C.Bernstein(India)PrivateLimited(SEBIregistrationno.INH000006378),SanfordC.Bernstein(Singapore)PrivateLimited,

SanfordC.BernsteinJapanKK(サンフォード・C・バーンスタイン株式会社)andanalystsemployedbySociétéGénérale

AfricaTechnologies&ServicestoproduceBernsteinresearchunderaGlobalServicesAgreementinplacebetweenBernstein

andSociétéGénérale.

BernsteinispartofajointventurebetweenSociétéGénérale(SG)andAllianceBernstein,L.P.(AB).Unlessspecificallynotedotherwise,forpurposesofthesedisclosures,referencestoBernstein’s“affiliates”relatetobothSGandABandtheirrespectiveaffiliates.

VALUATIONMETHODOLOGY

TencentHoldingsLtd

WevalueTencentatHK$780pershare,ona20xFY+1(i.e.Quarters5-8)PEmultiple.

AlibabaGroupHoldingLtd

WevalueAlibabaatUS$180/HK$176pershare,basedonourSOTPvaluationforFY+1revenuesandprofitsinitscoree-commerceandCloudbusinesses.

RISKS

TencentHoldingsLtd

ThemaindownsiderisksassociatedwithTencentincludemacroeconomicrisks(

e.g.credit

,retailconsumption),fluctuationsinuserengagementwithitsplatforms,gamingandadvertisingdemandcompetitionwithrivalinternetplatforms,andregulatoryrisks–forexamplerelatedtoChina'santi-monopolyregulations.

AlibabaGroupHoldingLtd

ThemaindownsiderisksassociatedwithourpricetargetforAlibabaincludemacroeconomicrisks(

e.g.credit

,retailconsumption),fluctuationsinuserengagementwithTaobao,Tmall,andotherplatforms,competitionwithrivalinternetplatforms,regulatoryrisks–forexamplerelatedtoChina'santi-monopolyregulations,andlossesinthecompany'sinnovationinitiatives&otherssegment.

RATINGSDEFINITIONS,BENCHMARKSANDDISTRIBUTION

EQUITYRATINGSDEFINITIONS

Bernsteinbrand

TheBernsteinbrandratesstocksbasedonforecastsofrelativeperformanceforthenext12monthsversustheS&P500forstockslistedontheU.S.andCanadianexchanges,versustheBloombergEuropeDevelopedMarketsLargeandMidCapPriceReturnIndexEUR(EDME)forstockslistedontheEuropeanexchangesandemergingmarketsexchangesoutsideoftheAsiaPacificregion,versustheBloombergJapanLargeandMidCapPriceReturnIndexUSD(JPL)forstockslistedontheJapaneseexchanges,andversustheBloombergAsiaex-JapanLargeandMidCapPriceReturnIndex(ASIAX)forstockslistedontheAsian(ex-Japan)exchanges-unlessotherwisespecified.

TheBernsteinbrandhasthreecategoriesofratings:

•Outperform:Stockwilloutpacethemarketindexbymorethan15pp

•Market-Perform:Stockwillperforminlinewiththemarketindextowithin+/-15pp

•Underperform:Stockwilltrailtheperformanceofthemarketindexbymorethan15pp

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CoverageSuspended:CoverageofacompanyundertheBernsteinresearchbrandhasbeensuspended.Ratingsandpricetargetsaresuspendedtemporarily,arenolongercurrent,andshouldthereforenotbereliedupon.

NotRated:Aratingassignedwhenthestockcannotbeaccuratelyvalued,ortheperformanceofthecompanyaccuratelypredicted,atthepresenttime.Thecoveringanalystmaycontinuetopublishresearchreportsonthecompanytoupdateinvestorsoneventsanddevelopments.

NotCovered(NC)denotescompaniesthatarenotundercoverage.

Bernsteinbrandstockratingsarebasedona12-monthtimehorizon.

Autonomousbrand–commonstocks

TheAutonomousbrandratescommonstocksasindicatedbelow.AsourbenchmarksweusetheBloombergEurope500BanksAndFinancialServicesIndex(BEBANKS)andBloombergEuropeDevMktFinancialsLargeandMidCapPriceRetIndexEUR(EDMFI)indexfordevelopedEuropeanbanksandPayments,theBloombergEurope500InsuranceIndex(BEINSUR)forEuropeaninsurers,theS&P500andS&PFinancialsforUSbanksandPaymentscoverage,S5LIFEforUSInsurance,theS&PInsuranceSelectIndustry(SPSIINS)forUSNon-LifeInsurerscoverage,andtheBloombergEmergingMarketsFinancialsLarge,MidandSmallCapPriceReturnIndex(EMLSF)foremergingmarketbanksandinsurersandPayments.Ratingsarestatedrelativetothesector(notthemarket).

TheAutonomousbrandhasthreecategoriesofcommonstockratings:

•Outperform(OP):Stockwilloutpacetherelevantindexbymorethan10pp

•Neutral(N):Stockwillperforminlinewiththemarketindextowithin+/-10pp

•Underperform(UP):Stockwilltrailtheperformanceoftherelevantindexbymorethan10pp

CoverageSuspended:CoverageofacompanyundertheAutonomousresearchbrandhasbeensuspended.Ratingsandpricetargetsaresuspendedtemporarily,arenolongercurrent,andshouldthereforenotbereliedupon.

NotRated:Aratingassignedwhenthestockcannotbeaccuratelyvalued,ortheperformanceofthecompanyaccuratelypredicted,atthepresenttime.Thecoveringanalystmaycontinuetopublishresearchreportsonthecompanytoupdateinvestorsoneventsanddevelopments.

Thosedenotedas‘Feature’(e.g.,FeatureOutperformFOP,FeatureUnderOutperformFUP)areourcoreideas.NotCovered(NC)denotescompaniesthatarenotundercoverage.

Autonomousbrandcommonstockratingsarebasedona12-monthtimehorizon.

Autonomousbrand–preferredstocks

TheAutonomousbrandhasthreecategoriesofpreferredstockratings:

•Outperform(OP):Thetotalreturnofthepreferredinstrumentisexpectedtooutperformpreferredsecuritiesofotherissuersoperatinginsimilarsectorsorratingcategoriesoverthenextsixmonths.

•Neutral(N):Thetotalreturnofthepreferredinstrumentisexpectedtoperforminlinewithpreferredsecuritiesofotherissuersoperatinginsimilarsectorsorratingcategoriesoverthenextsixmonths.

•Underperform(UP):Thetotalreturnofthepreferredinstrumentisexpectedtounderperformpreferredsecuritiesofotherissuersoperatinginsimilarsectorsorratingcategoriesoverthenextsixmonths.

Autonomouspreferredstockratingsarebasedona6-monthtimehorizon.

AUTONOMOUSCREDITRESEARCH

Wherethisreportcontainsinvestmentrecommendationsforcreditinstruments,asdefinedinarticle3(1)(35)oftheMarketAbuseRegulation,theinformationbelowispresentedtocomplywithitsdisclosurerequirements.

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Thereportmayalsoincludereference(s)topublishedopinionsbyotherAutonomousorBernsteinanalystscoveringtheequitysecuritiesoftheissuer(s)referencedherein.Pleasenoteaninvestmentrecommendationforcreditinstrumentspublishedbytheauthor(s)ofthisreportmaydifferfromthepublishedviewoftheanalystcoveringequitysecuritiesfortheissuer(s)containedinthisreportandviceversa.

CREDITRATINGSDEFINITIONS

TheAutonomousbrandhasthreecategoriesofcreditratings:

•CreditOutperform(C-OP):ThetotalreturnoftheReferenceCreditInstrumentisexpectedtooutperformthecreditspreadofbondsofotherissuersoperatinginsimilarsectorsorratingcategoriesoverthenextsixmonths.

•CreditNeutral(C-N):ThetotalreturnoftheReferenceCreditInstrumentisexpectedtoperforminlinewiththecreditspreadofbondsofotherissuersoperatinginsimilarsectorsorratingcategoriesoverthenextsixmonths.

•CreditUnderperform(C-UP):ThetotalreturnoftheReferenceCreditInstrumentisexpectedtounderperformthecreditspreadofbondsofotherissuersoperatinginsimilarsectorsorratingcategoriesoverthenextsixmonths.

Autonomouscreditratingsarebasedona6-monthtimehorizon.

Alistofallinvestmentrecommendationsproducedbytheauthor(s)ofthisreportalongsidecreditratingshistoryareavailableuponrequest.

ItisatthesolediscretionoftheFirmastowhentoinitiate,updateandceaseresearchcoverage.TheFirmhasestablished,maintainsandreliesoninformationbarrierstocontroltheflowofinformationcontainedinoneormoreareas(i.e.theprivateside)withintheFirm,andintootherareas,units,groupsoraffiliates(i.e.publicside)oftheFirm

DISTRIBUTIONOFEQUITYRATINGS/INVESTMENTBANKINGSERVICES

EquityRating

MarketAbuse

Regulation(MAR)andFINRARatingCategory

GlobalRatingDistribution

InvestmentBankingRelationships*

Outperform

BUY

51.1%

16.5%

Market-Perform(BernsteinBrand)Neutral(AutonomousBrand)

HOLD

36.3%

17.8%

Underperform

SELL

12.6%

14.9%

*ThesefiguresrepresentthepercentageofcompanieswithineachequityratingcategoryforwhichaffiliatesofBernsteinhaveprovidedinvestmentbankingserviceswithintheprevious12months.

AsofMarch31,2026.Allfiguresareupdatedquarterly.

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PRICECHARTS/RATINGSANDPRICETARGETHISTORY

O:HK$540.00

10/16/2024K$900

K$800

K$700

K$600

K$500

K$400

K$300

K$200

ClosingPricePriceTarget

Outperform(O);Market-Perform(M);Underperform(U);CoverageSuspended(CS);NotCovered(NC)

TencentHoldingsLtd(700.HK)RatingHistoryforBernsteinasof06/12/2026

Oct24Jan25Apr25Jul25Oct25Jan26Apr26

Jul23Oct23Jan24Apr24Jul24

O:HK$750.0009/12/2025

O:HK$800.0010/14/2025

O:HK$820.0011/14/2025

O:HK$790.0003/18/2026

O:HK$780.0004/16/2026

O:HK$700.0008/14/2025

O:HK$640.0003/05/2025

O:HK$660.0005/15/2025

AlibabaGroupHoldingLtd(BABA)RatingHistoryforBernsteinasof06/12/2026

O:$160.0008/29/2025

O:$165.0002/26/2025

O:$145.0007/21/2025

O:$167.0009/12/2025

M:$80.0002/08/2024

M:$85.0008/15/2024

M:$98.0006/26/2023

M:$100.0008/11/2023

M:$85.0001/30/2024

M:$104.0010/16/2024

M:$93.0011/16/2023

$220$200$180$160$140$120$100$80$60

O:$200.0010/10/2025

O:$180.0003/20/2026

Jul23Oct23Jan24Apr24Jul24Oct24Jan25Apr25Jul25Oct25Jan26Apr26

O:$190.0011/26/2025

ClosingPricePriceTarget

Outperform(O);Market-Perform(M);Underperform(U);CoverageSuspended(CS);NotCovered(NC)

AlibabaGroupHoldingLtd(9988.HK)RatingHistoryforBernsteinasof06/12/2026

M:HK$102.0010/16/2024

O:HK$161.0002/26/2025

O:HK$141.0007/21/2025

O:HK$156.0008/29/2025

M:HK$96.0006/26/2023

M:HK$98.0008/11/2023

M:HK$83.0001/30/2024

M:HK$78.0002/08/2024

M:HK$83.0008/15/2024

M:HK$91.0011/16/2023

K$200

K$180

K$160

K$140

K$120

K$100HK$80

HK$60

O:HK$163.0009/12/2025

O:HK$196.0010/10/2025

O:HK$176.0003/20/2026

Jul23Oct23Jan24Apr24Jul24Oct24Jan25Apr25Jul25Oct25Jan26Apr26

O:HK$186.0011/26/2025

ClosingPricePriceTarget

Outperform(O);Market-Perform(M);Underperform(U);CoverageSuspended(CS);NotCovered(NC)

Allpricetargetandclosingpricedatainthechart(s)abovearedenominatedinthecurrencynotedintheTickerTableofthisreport.

CONFLICTSOFINTEREST

Bernsteinhasreceivedcompensationfornon-investmentbankingsecurities-relatedproductsorservicesintheprevioustwelvemonthsfromthefollowingclients:TencentHoldingsLtd.

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AnaffiliateofBernsteinhasreceivedcompensationfornon-investmentbankingsecurities-relatedproductsorservicesintheprevioustwelvemonthsfromthefollowingclients:TencentHoldingsLtd.

Bernsteinand/oraffiliateshavereceivedcompensationfornon-investmentbankingsecurities-relatedproductsorservicesintheprevioustwelvemonthsfromthefollowingclients:TencentHoldingsLtd.

CertainaffiliatesofBernsteinactasmarketmakerorliquidityproviderinthedebtsecuritiesof:TencentHoldingsLtdandAlibabaGroupHoldingLtd.

OTHERMATTERS

Thelegalentity(ies)employingtheanalyst(s)listedinthisreport,andtheirlocation,canbedeterminedbythecountrycodeoftheirphonenumber,asfollows:

+1BernsteinInstitutionalServicesLLC;NewYork,NewYork,USA+44BernsteinAutonomousLLP;LondonUK

+212SociétéGénéraleAfricaTechnologies&Services;Casablanca,Morocco

+33BSGFranceS.A.;Paris,France

+34BSGFranceS.A.;Madrid,Spain

+41BernsteinAutonomousLLP;Geneva,Switzerland

+49BSGFranceS.A.;Frankfurt,Germany

+91SanfordC.Bernstein(India)PrivateLimited;Mumbai,India

+852SanfordC.Bernstein(HongKong)Limited盛博香港有限公司;HongKong,China+65SanfordC.Bernstein(Singapore)PrivateLimited;Singapore

+81SanfordC.BernsteinJapanKK;Tokyo,Japan

Wherethisreporthasbeenpreparedbyresearchanalyst(s)employedbyanon-USaffiliate,suchanalyst(s),is/are(unlessotherwiseexpresslynotedbelow)notregisteredasassociatedpersonsofBernsteinInstitutionalServicesLLCoranyotherSEC-registeredbroker-dealerandarenotlicensedorqualifiedasresearchanalystswithFINRA.Accordingly,suchanalyst(s)maynotbesubjecttoFINRA’srestrictionsregarding(amongotherthings)communicationsbyresearchanalystswithasubjectcompany,interactionsbetweenresearchanalystsandinvestmentbankingpersonnel,participationbyresearchanalystsinsolicitationandmarketingactivitiesrelatingtoinvestmentbankingtransactions,publicappearancesbyresearchanalysts,andtradingsecuritiesheldbyaresearchanalystaccount.

Wherethisreporthasbeenpreparedbyresearchanalyst(s)employedbySociétéGénéraleAfricaTechnologies&Services(partoftheSociétéGénéralegroupofcompanies),ithasbeenpreparedonbehalfofaBernsteincompanyunderaGlobalServicesAgreementinplacebetweenBernsteinandSociétéGénérale.

CERTIFICATION

Eachresearchanalystlistedinthisreport,whoisprimarilyresponsibleforthepreparationofthecontentofthisreport,certifiesthatalloftheviewsexpressedinthispublicationaccuratelyreflectthatanalyst'spersonalviewsaboutanyandallofthesubjectsecuritiesorissuersandthatnopartofthatanalyst'scompensationwas,is,orwillbe,directlyorindirectly,relatedtothespecificrecommendationsorviewsinthispublication.

II.ADDITIONALGLOBALCONFLICTDISCLOSURES

ItisatthesolediscretionoftheFirmastowhentoinitiate,updateandceaseresearchcoverage.TheFirmhasestablished,maintainsandreliesoninformationbarrierstocontroltheflowofinformationcontainedinoneormoreareas(i.e.,theprivateside)withintheFirm,andintootherareas,units,groupsoraffiliates(i.e.,publicside)oftheFirm.

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III.OTHERIMPORTANTINFORMATIONANDDISCLOSURES

Separatebrandingismaintainedfor“Bernstein”and“Autonomous”researchproducts.

•Bernsteinproducesanumberofdifferenttypesofresearchproductsincluding,amongothers,fundamentalanalysisandquantitativeanalysisunderboththe“Autonomous”and“Bernstein”brands.Recommendationscontainedwithinonetypeofresearchproductmaydifferfromrecommendationscontainedwithinothertypesofresearchproducts,whetherasaresultofdifferingtimehorizons,methodologiesorotherwise.Furthermore,viewsorrecommendationswithinaresearchproductissuedunderonebrandmaydifferfromviewsorrecommendationsunderthesametypeofresearchproductissuedundertheotherbrand.TheResearchRatingsSystemforthetwobrandsandotherinformationrelatedtothoseRatingSystemsareincludedintheprevioussection.

•Autonomousoperatesasaseparatebusinessunitwithinthefollowingentities:BernsteinInstitutionalServicesLLC,BernsteinAutonomousLLP,SanfordC.Bernstein(HongKong)Limited盛博香港有限公司andSanfordC.Bernstein(India)PrivateLimited.Forinformationrelatingto“Autonomous”brandedproducts(includingcertainSalesmaterials)pleasevisit:

.For

information

relatingtoBernsteinbrandedproductspleasevisit:

.

Analystsarecompensatedbasedonaggregatecontributionstotheresearchfranchiseasmeasuredbyaccountpenetration,productivityandproactivityofinvestmentideas.Noanalystsarecompensatedbasedonperformancein,orcontributionsto,generatinginvestmentbankingrevenues.

ThisreporthasbeenproducedbyanindependentanalystasdefinedinArticle3(1)(34)(i)ofEU596/2014MarketAbuseRegulation(“MAR”)andthesamearticleofMARasitformspartofUnitedKingdomdomesticlawbyvirtueoftheEuropeanUnion(Withdrawal)Act2018.

ToourreadersintheUnitedStates:BernsteinInstitutionalServicesLLC,abroker-dealerregisteredwiththeU.S.SecuritiesandExchangeCommission(“SEC”)andamemberoftheU.S.FinancialIndustryRegulatoryAuthority,Inc.(“FINRA”)isdistributingthispublicationintheUnitedStatesandacceptsresponsibilityforitscontents.Wherethismaterialcontainsananalysisofdebtproduct(s),suchmaterialisintendedonlyforinstitutionalinvestorsandisnotsubjecttotheUSindependenceanddisclosurestandardsapplicabletodebtresearchpreparedforretailinvestors.

BernsteinInstitutionalServicesLLCmayactasprincipalforitsownaccountorasagentforanotherperson(includinganaffiliate)insalesorpurchasesofanysecuritywhichisasubjectofthisreport.Thisreportdoesnotpurporttomeettheobjectivesorneedsofanyspecificindividuals,entitiesoraccounts.

ToourreadersinCanada:IfthispublicationpertainstoaCanadiandomiciledcompany,itisbeingdistributedinCanadabySanfordC.Bernstein(Canada)Limited,whichislicensedandregulatedbytheCanadianInvestmentRegulatoryOrganization.Ifthepublicationpertainstoanon-Canadiandomiciledcompany,itisbeingdistributedbyBernsteinInstitutionalServicesLLC,whichislicensedandregulatedbyboththeSECandFINRA,intoCanadaundertheInternationalDealersExemption.

ThisdocumentmaynotbepassedontoanypersoninCanadaunlessthatpersonqualifiesas"permittedclient"asdefinedinSection1.1ofNI31-103.

ToourreadersinBrazil:ThisreporthasbeenpreparedbyBernsteinInstitutionalServicesLLC,andBancoBTGPactualS.A.("BTG")isresponsibleforthedistributionofthisreportinBrazil.

ToreadersintheUnitedKingdom:ThispublicationhasbeenissuedorapprovedforissueintheUnitedKingdombyBernsteinAutonomousLLP,authorisedandregulatedbytheFinancialConductAuthorityandlocatedat60LondonWall,LondonEC2M5SH,+44(0)20-7170-5000.RegisteredinEngland&WalesNoOC343985.

Thisdocumentisfordistributiononlytopersonswho(i)haveprofessionalexperienceinmattersrelatingtoinvestmentsfallingwithinArticle19(5)oftheFinancialServicesandMarketsAct2000(FinancialPromotion)Order2005(asamended,the“FinancialPromotionOrder”),(ii)arepersonsfallingwithinArticle49(2)(a)to(d)(“highnetworthcompanies,unincorporatedassociations,etc.”)oftheFinancialPromotionOrder,(iii)areoutsidetheUnitedKingdom,or(iv)arepersonstowhomaninvitationorinducementtoengageininvestmentactivity(withinthemeaningofsection21of