Direcional Engenharia S.A. Quarterly information (ITR) at September 30, 2016 and report on review of quarterly information

Transcrição

1 (A free translation of the original in Portuguese) Direcional Engenharia S.A. Quarterly information (ITR) and report on review of quarterly information

2 (A free translation of the original in Portuguese) Report on review of quarterly information To the Board of Directors and Stockholders Direcional Engenharia S.A. Introduction We have reviewed the accompanying parent company and consolidated interim accounting information of Direcional Engenharia S.A. (the "Company"), included in the Quarterly Information Form (ITR) for the quarter ended September 30, 2016, comprising the balance sheet as at that date and the statements of income, and comprehensive income for the quarter and nine-month period then ended, and the changes in equity and cash flows for the nine-month period then ended, and a summary of significant accounting policies and other explanatory information. Management is responsible for the preparation of the parent company interim accounting information in accordance with the accounting standard CPC 21, "Interim Financial Reporting", issued by the Brazilian Accounting Pronouncements Committee (CPC), and of the consolidated interim accounting information in accordance with the accounting standard CPC 21, "Interim Financial Reporting" and International Accounting Standard (IAS) 34, "Interim Financial Reporting", issued by the International Accounting Standards Board (IASB), applicable to real estate development entities in Brazil, as approved by the CPC, the Brazilian Securities Commission (CVM) and the Brazilian Federal Accounting Council (CFC), as well as for the presentation of this information in accordance with the standards issued by the CVM, applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of the review We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, and ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists in making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. 2

3 Conclusion on the parent company interim information Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company interim accounting information included in the Quarterly Information referred to above has not been prepared, in all material respects, in accordance with CPC 21 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM. Conclusion on the consolidated interim information prepared in accordance with CPC 21 and IAS 34 - Interim Financial Reporting, applicable to Brazilian real estate development entities, as approved by the CPC, CVM and CFC Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim accounting information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21 and IAS 34, applicable to real estate development entities in Brazil, as approved by the CPC, CVM and CFC, applicable to the preparation of the Quarterly Information (ITR), and presented in accordance with the standards issued by the CVM. Emphasis of matter As described in Note 2, the parent company and consolidated interim accounting information was prepared in accordance with accounting practices adopted in Brazil. The consolidated interim accounting information prepared in accordance with the IFRS applicable to real estate development entities also complies with the General Technical Communication (CTG) 04, issued by the CFC. This Communication addresses the recognition of revenue of the real estate development sector, as well as matters related to the meaning and application of the concept of continuous transfer of risks, rewards and ownership on sales of real estate properties, as detailed in Note Our report on the review of the quarterly information is not qualified in respect of this matter. 3

4 Other matters Statements of value added We have also reviewed the parent company and consolidated statements of value added for the ninemonth period ended September 30, These statements are the responsibility of the Company's management, and are required to be presented in accordance with standards issued by the CVM applicable to the preparation of Quarterly Information (ITR) and are considered supplementary information under IFRS, which do not require the presentation of the statement of value added. These statements have been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that they have not been prepared, in all material respects, in a manner consistent with the parent company and consolidated interim accounting information taken as a whole. Belo Horizonte, November 14, 2016 PricewaterhouseCoopers Auditores Independentes CRC 2SP000160/O-5 "F" MG Guilherme Campos e Silva Contador CRC 1SP218254/O-1 S MG 4

5 Balance sheet All amounts in thousands of reais (A free translation of the original in Portuguese) Parent company Consolidated Notes 9/30/ /31/2015 9/30/ /31/2015 Current assets Cash and cash equivalents 4 351, , , ,624 Financial investments ,696 62,541 Trade receivables - real estate development 5 5,691 3, , ,169 Trade receivables - services rendered , ,219 Land to be developed , ,224 Completed real estate units , ,951 Real estate units under construction , ,115 Related parties ,959 40,230 72,450 50,104 Taxes recoverable - 16,910 21,598 21,600 26,814 Trade receivables for the sale of quotas - 34,102-34,102 - Other credits - 23,142 22,754 67,657 80,102 Total current assets 491, ,835 2,545,955 2,434,863 Non-current assets Trade receivables - real estate development , ,137 Land to be developed ,138 68,415 1,237,141 1,134,083 Related parties 7.1 9,185 13,217 9,185 13,249 Other credits - 16,470 3,521 27,947 25,529 Investments 8 1,497,429 1,544,156 51,964 37,783 Property and equipment 9 49,611 64,948 73,530 87,086 Intangible assets - 2,829 2,394 3,156 2,722 Total non-current assets 1,621,686 1,696,815 1,564,997 1,452,589 Total assets 2,112,966 2,029,650 4,110,952 3,887,452 1 of 80

6 Balance sheet All amounts in thousands of reais (continued) Parent company Consolidated Note 9/30/ /31/2015 9/30/ /31/2015 Current liabilities Borrowings , , , ,584 Trade payables - 3,591 6, , ,802 Salaries and social charges 11 11,096 8,463 50,284 43,956 Tax liabilities ,089 39,654 45,756 Real estate commitments payable ,232 36,266 Advances from customers 14-7,748 10,563 28,742 Proposed dividends Other payables 15 55,877 14,202 63,588 25,682 Related parties ,496 23,239 14,501 8,549 Total current liabilities 226, , , ,383 Non-current liabilities Borrowings , , , ,867 Trade payables ,866 7,866 Provision for warranties ,862 29,190 Tax liabilities ,715 7,126 Real estate commitments payable 13 42,073 59, , ,130 Advances from customers 14 2, , ,792 Provision for tax, labor and civil risks ,717 35,427 35,595 Other payables ,000 26,000 Related parties ,180 19, Total non-current liabilities 227, ,380 1,541,785 1,441,584 Equity Share capital , , , ,982 Treasury shares 17.2 (41,573) (41,791) (41,573) (41,791) Capital reserves , , , ,832 Stock options granted ,620 2,151 2,620 2,151 Carrying value adjustment - (20,976) (20,868) (20,976) (20,868) Revenue reserves , , , ,235 Profit for the period - 52,949-52,949-1,658,894 1,645,541 1,658,894 1,645,541 Non-controlling interests , ,944 1,658,894 1,645,541 1,809,401 1,777,485 Total liabilities and equity 2,112,966 2,029,650 4,110,952 3,887,452 The accompanying notes are an integral part of this quarterly financial information. 2 of 80

7 Statement of income Periods ended September 30 (A free translation of the original in Portuguese) Parent company Consolidated Notes 9/30/2016 9/30/2015 9/30/2016 9/30/2015 Net operating revenue ,472 7,390 1,103,525 1,171,564 Cost of real estate sold and services rendered 18.2 (116) (2,416) (921,696) (921,208) Gross profit 4,356 4, , ,356 Operating income (expenses) General and administrative expenses 18.3 (80,143) (78,560) (81,295) (79,047) Selling expenses 18.3 (3,653) (2,758) (38,799) (30,299) Equity in results of investees 8 122, ,515 (1,174) (941) Other operating income (expenses) - 11,757 (12,959) 9,072 (17,219) 50,095 92,238 (112,196) (127,506) Finance result: Finance costs 19 (34,044) (30,925) (38,763) (36,542) Finance income 19 32,546 26,559 50,899 49,546 (1,498) (4,366) 12,136 13,004 Profit before taxation 52,953 92,846 81, ,854 Income tax and social contribution 20 (4) (23) (16,781) (18,017) Profit for the period 52,949 92,823 64, ,837 Profit attributable to Non-controlling interests in Special Partnerships (SCPs) and Special Purpose Entities (SPEs) (12,039) (25,014) Profit attributable to: Direcional Engenharia S.A. 52,949 92,823 52,949 92,823 Earnings per share - R$ Basic Diluted The accompanying notes are an integral part of this quarterly financial information. 3 of 80

8 Statement of comprehensive income Periods ended September 30 All amounts in thousands of reais (A free translation of the original in Portuguese) Parent company Consolidated 9/30/2016 9/30/2015 9/30/2016 9/30/2015 Profit for the period 52,949 92,823 64, ,837 Total comprehensive income for the period 52,949 92,823 64, ,837 Attributable to: Owners of the Company 52,949 92,823 Non-controlling interests 12,039 25,014 64, ,837 The accompanying notes are an integral part of this quarterly financial information. 4 of 80

9 Statement of changes in equity All amounts in thousands of reais (A free translation of the original in Portuguese) Attributable to owners of the parent Capital reserves Revenue reserves Notes Share capital Treasury shares Issue/ disposal of shares Stock options granted Carrying value adjustment Legal Profit retention Additional proposed dividends For investment At December 31, ,982 (23,118) 229,610 5,005 (21,717) 25, ,026 11, ,213-1,616, ,495 1,735,531 Capital increase through capital reserves Retained earnings Equity - Parent company Noncontrolling interests 50, (50,000) Equity - Consolidated Options granted (2,999) (2,999) - (2,999) Capital decrease by noncontrolling interests (5,627) (5,627) Profit for the period ,823 92,823 25, ,837 Proposed dividends (40,000) (11,686) - - (51,686) - (51,686) Repurchase of shares - - (40,493) (40,493) - (40,493) Sale of treasury shares (187) Shares canceled ,591 (21,591) Transactions with noncontrolling interests At September 30, ,982 (41,791) 207,832 2,006 (20,868) 25, , ,213 92,823 1,614, ,882 1,753,454 - At December 31, ,982 (41,791) 207,832 2,151 (20,868) 25, , ,864-1,645, ,944 1,777,485 Options granted Capital decrease by noncontrolling interests ,524 6,524 Profit for the period ,949 52,949 12,039 64,988 Proposed dividends (40,000) (40,000) - (40,000) Transactions with noncontrolling interests (108) (108) - (108) Sale of treasury shares (175) At September 30, ,982 (41,573) 207,657 2,620 (20,976) 25, , ,864 12,949 1,658, ,507 1,809,401 The accompanying notes are an integral part of this quarterly financial information. 5 of 80

10 Statement of cash flows Period ended September 30 All amounts in thousands of reais (A free translation of the original in Portuguese) Parent company Consolidated 9/30/2016 9/30/2015 9/30/2016 9/30/2015 Operating activities Profit before income tax and social contribution 52,953 92,846 81, ,854 Adjustments to reconcile profit with cash from operations: Depreciation and amortization 5,742 9,629 19,077 35,131 Equity in the results of investees (122,134) (186,515) 1, Provision for warranties (118) 40 2,672 5,739 Interest on borrowings 30,357 29,890 72,545 68,954 Provision for tax, labor and civil risks (2,153) 1,939 (168) 7,413 Income from barter transactions - - (9,769) (13,790) Taxes - (1,078) (1,948) (2,363) Adjustment to present value on trade receivables - - (3,312) 491 Provision for stock option plan 469 (2,999) 469 (2,999) Changes in assets Trade receivables (1,789) 49, ,329 85,846 Inventories 43,479 1 (49,037) (94,946) Sundry credits (47,439) 5,021 (24,075) (3,640) Related parties (7,771) 18,608 (18,282) (5,373) Taxes recoverable 4,688 (4,006) 5,214 (4,603) Changes in liabilities Trade payables (3,187) (4,373) (2,827) (22,913) Salaries and social charges 2,633 2,856 6,328 8,244 Tax liabilities (455) 251 (3,300) (3,699) Real estate commitments payable (43,480) - (69,750) (26,993) Advances from customers (359) (19,039) Accounts payable 8,730 (894) 4,961 (23,023) Related parties 12,300 24,988 5,977 13,013 Cash provided by (used in) operations (67,175) 36, , ,245 Income tax and social contribution paid (4) (1,018) (18,046) (19,626) Net cash provided by (used in) operating activities (67,179) 35, , ,619 Cash flow from investing activities Increase in investments (SPCs and SPEs) (102,507) 120,575 12,386 (5,190) Dividends received 304,313 66,081 5,204 5,223 Increase in property and equipment 2,303 (11,304) (3,678) (15,928) Increase in intangible assets (1,064) (1,006) (1,166) (1,019) Financial investments - - (21,155) (33,792) Net cash provided by (used in) investing activities 203, ,346 (8,409) (50,706) Cash flows from financing activities Treasury shares - (40,493) - (40,493) Transactions with non-controlling interests (108) 849 (108) 849 Dividends paid (40,000) (66,873) (40,046) (66,873) New borrowings 154,570 1, , ,930 Repayment of borrowings (115,759) (108,205) (301,966) (236,914) Interest paid (27,584) (31,079) (69,500) (68,505) Capital increase - non-controlling stockholders - - 6,524 (5,627) Net cash provided by (used in) financing activities (28,881) (244,572) (45,754) (262,633) Increase (decrease) in cash and cash equivalents 106,985 (35,126) 48,479 (194,720) 6 of 80

11 Statement of cash flows Period ended September 30 All amounts in thousands of reais (continued) Parent company Consolidated 9/30/2016 9/30/2015 9/30/2016 9/30/2015 Cash and cash equivalents At the beginning of the period 244, , , ,110 At the end of the period 351, , , ,390 Increase (decrease) in cash and cash equivalents 106,985 (35,126) 48,479 (194,720) The accompanying notes are an integral part of this quarterly financial information. 7 of 80

12 Statement of value added Periods ended September 30 All amounts in thousands of reais (A free translation of the original in Portuguese) Parent company Consolidated 9/30/2016 9/30/2015 9/30/2016 9/30/2015 Revenue Real estate sold and services rendered 6,633 8,417 1,182,346 1,232,252 Other operating income (expenses) 11,757 (12,959) 9,072 (17,219) 18,390 (4,542) 1,191,418 1,215,033 Inputs acquired from third parties Raw materials used (877) (1,628) (652,709) (607,844) Materials, electricity, outsourced services and other (12,992) (15,598) (13,352) (16,311) operating expenses Other (12,677) (5,598) (43,766) (24,651) (26,546) (22,824) (709,827) (648,806) Gross value added (8,156) (27,366) 481, ,227 Depreciation and amortization, net (5,742) (9,629) (19,077) (35,131) Net value added generated by the Company (13,898) (36,995) 462, ,096 Value added received through transfer Equity in the results of investees 122, ,515 (1,174) (941) Finance income 32,546 26,559 50,899 49, , ,074 49,725 48,605 Total value added to distribute 140, , , ,701 Distribution of value added Personnel 51,624 50, , ,518 Taxes and contributions 2,165 1,050 95,602 78,705 Remuneration of third-party capital 34,044 31,219 80,779 73,641 Retained earnings 52,949 92,823 52,949 92,823 Profit attributed to non-controlling interests ,039 25, , , , ,701 The accompanying notes are an integral part of this quarterly financial information. 8 of 80

13 (A free translation of the original in Portuguese) Direcional Engenharia S.A. 1 Operations Direcional Engenharia S.A. ("Direcional" or the "Company") is a publicly-held company organized under the Brazilian corporation laws, with its shares traded on the São Paulo Futures, Commodities and Stock Exchange (BM&FBovespa) under the ticker symbol DIRR3. The Company is domiciled in Brazil and headquartered at Rua dos Otoni, 177, Belo Horizonte, in the State of Minas Gerais. Direcional is a real estate development and construction company, whose activities include developing large low-income-oriented projects, primarily focused on the Northern, Midwestern and Southeastern regions of Brazil. During its 35 years of experience in developing and building low-income-oriented projects, the Company has established a verticalized structure and a standardized construction process, which has made the construction of large-scale projects feasible. The Company carries out its development and construction activities through Special Partnerships (SCPs) and Special Purpose Entities (SPEs) in the normal course of its business, in order to enable the formation of partnerships, permitting it to accompany projects individually, obtain financing easily, and improve financial and accounting control. Both its SCPs and SPEs operate exclusively in the real estate sector and, in most cases, are associated with a specific venture. These financial statements were approved by the Board of Directors on November 14, Summary of significant accounting practices and policies The quarterly information was prepared in accordance with the Technical Pronouncement CPC 21 (R1), Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC), and International Accounting Standard (IAS) 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), and is being presented in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly Information (ITR). This quarterly information was prepared according to the principles, practices and criteria adopted in the preparation of the annual financial statements at December 31, Accordingly, this quarterly information should be read together with the aforementioned financial statements, which were approved by the Company's Board of Directors on March 14, 2016 and filed on the same date. 2.1 Basis of preparation The quarterly information has been prepared under the historical cost convention, with financial assets and financial liabilities measured at fair value through profit or loss. The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the quarterly information are disclosed in Note 3. 9 of 80

14 (a) Consolidated quarterly information The consolidated quarterly information was prepared in accordance with the accounting practices adopted in Brazil, pursuant to Technical Pronouncement CPC 21 (R1), Interim Financial Reporting, issued by the Brazilian Accounting Pronouncements Committee (CPC), and International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) ("IFRS"), including Guidance OCPC 04, Application of Technical Interpretation ICPC 02 to Brazilian Real Estate Development Entities, issued by the CPC, as approved by the Brazilian Securities Commission (CVM) and the Brazilian Federal Accounting Council (CFC). This quarterly information is referred to as "consolidated". The presentation of the parent company and consolidated statements of value added is required by the Brazilian corporate legislation and the accounting practices adopted in Brazil for listed companies, while it is not required by IFRS. Therefore, under the IFRS, the presentation of such statements is considered supplementary information, and not part of the set of financial statements. The consolidated quarterly information comprises the quarterly information of the parent company and of its subsidiaries, as mentioned in Note 8 (jointly the "Group"). The Company participates in real estate activities through Special Partnerships (SCPs) and Special Purpose Entities (SPEs), with operations carried out on behalf of the lead partner, who is, in general, the project leader. (b) Parent company quarterly information The parent company quarterly information has been prepared in accordance with accounting practices adopted in Brazil, pursuant to Technical Pronouncement CPC 21 (R1), Interim Financial Reporting. It is referred to as the "parent company" quarterly information, and is disclosed together with the consolidated quarterly information. In the parent company quarterly information, subsidiaries and corporate or incorporate joint ventures are recorded based on the equity accounting method, proportionately adjusted to the Group's interest in the contractual rights and obligations. The same adjustments are made to the Parent Company and consolidated quarterly information to reach the same profit or loss and equity attributable to the owners of the Parent Company. For the purposes of recognizing equity in the results, the quarterly information of the subsidiaries and associates are prepared for the same period as those of the Company and, when necessary, adjustments are made to their accounting policies to bring them into line with those adopted by the Company. The Company's shares in the results of the subsidiaries and associates are recorded in the parent company's statement of income as equity in results of investees, representing the profit or loss attributable to the owners of the Company. After the application of the equity accounting method, the Company determines whether it is necessary to recognize an additional impairment loss on the Company's investments in the subsidiary and associated companies. The Company assesses, at the end of each reporting period, whether there is objective evidence that investments in subsidiaries and associates are impaired. 10 of 80

15 If there is such evidence, the Company calculates the impairment loss as the difference between the recoverable amount of the investment and the carrying amount and recognizes the loss in the parent company's statement of income. 2.2 Consolidation The following accounting policies are applied in the preparation of the consolidated financial statements. (a) Subsidiaries Subsidiaries are all entities (including structured entities), whether or not of a corporate nature, over which the Group has control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. They are fully consolidated from the date on which control is transferred to the Group and deconsolidated from the date that control ceases. The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity instruments issued by the Group. The consideration transferred includes the fair value of assets or liabilities resulting from a contingent consideration arrangement, when applicable. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values on the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisitionby-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the fair value of the acquiree's identifiable net assets. Non-controlling interests are determined on each acquisition. The excess of: (i) the consideration transferred; (ii) the amount of any non-controlling interest in the acquiree; and (iii) the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group's interest in the identifiable net assets acquired is recorded as goodwill. If the total of (i), (ii), and (iii) above is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the statement of income. Transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated, unless the transaction provides evidence of impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. (b) Transactions with non-controlling interests The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the proportion acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded directly in equity, in "Carrying value adjustments". 11 of 80

16 (c) Loss of control of subsidiaries When the Group ceases to have control, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the carrying amount for the purposes of subsequently accounting for the retained interest in an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. (d) Associates and joint arrangements Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Jointly-controlled subsidiaries are all entities over which the Group shares control with one or more parties. Investments in jointly-controlled entities are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. Investments in associates and joint ventures are accounted for using the equity method and are initially recognized at cost. The Group's investment in associates and joint ventures includes goodwill identified on acquisition, net of any accumulated impairment loss. The Group's share of the profit or loss of its associates and joint ventures is recognized in the statement of income and its share of reserve movements is recognized in the Group reserves. When the Group's share of losses in an associate or joint venture equals or exceeds the carrying amount of the investment, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the associate or jointly-controlled investee. Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group's interest. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates and jointly-controlled investees have been changed where necessary to ensure consistency with the policies adopted by the Group. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income is reclassified to profit or loss where appropriate. Dilution gains and losses arising on investments in associates are recognized in the statement of income. 12 of 80

17 3 Critical accounting estimates and judgments Accounting estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 3.1 Critical accounting estimates and assumptions Based on assumptions, the Group makes estimates concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: (a) Fair value of financial instruments The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses judgment to select among a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. The Group has used discounted cash flow analysis for various available-for-sale financial assets that are not traded in active markets. (b) Revenue recognition The Company and its subsidiaries use the Percentage of Completion (POC) method to account for their contracts to sell units of real estate developments and to render services. The use of the POC method requires the Company to estimate the costs to be incurred up to the completion of the construction and delivery of the completed real estate units pertaining to each real estate development project, in order to establish a proportion of the costs already incurred in relation to the total estimated costs. (c) Estimated costs Total estimated costs, comprising costs incurred and expected to be incurred for the completion of the construction work, are periodically reviewed during the course of the project, and the effect of these reviews of the estimates are reflected in the Company's results, in accordance with the technical pronouncement CPC 23, Accounting Policies, Changes in Accounting Estimates and Correction of Errors. (d) Provision for contingencies The Company recognizes provisions for tax, civil and labor contingencies. The assessment of the likelihood of loss includes the evaluation of available evidence, the hierarchy of laws, available case law, recent court decisions and their significance in the legal system, as well as the opinion of outside legal advisors. Provisions are reviewed and adjusted to take into consideration changes in circumstances, such as the applicable statutes of limitations, the conclusions of tax audits or additional exposure identified based on new matters or court decisions. The Company and its subsidiaries are periodically inspected by different authorities, including tax, labor, social security, environmental and sanitary surveillance agencies. It is not possible to ensure that these authorities will not issue assessments against the Company and its subsidiaries or that these assessments will not be converted into administrative proceedings and, subsequently, into lawsuits, nor is it possible to conclude on the final outcome of either the administrative proceedings or lawsuits. 13 of 80

18 3.2 Critical judgments in applying the entity's accounting policies (a) Revenue recognition For the purposes of applying the revenue recognition accounting policy, management follows Guidance OCPC 04 on the application of Technical Interpretation ICPC 02 to Brazilian real estate development entities, issued by the CPC and approved by the CVM and the Brazilian Federal Accounting Council (CFC), assessing whether the most significant risks and rewards of ownership of real estate units sold are continuously transferred to the buyers during the construction of the real estate development. This determination requires the use of significant judgment by management. If OCPC 04 had not been issued and the conclusion regarding the application of ICPC 02 had been that the most significant risks and rewards of ownership of real estate units are not continuously transferred to the buyers during the construction of the real estate development, the major transitory impact on the quarterly information would have been a decrease in equity and an adjustment to the profit for the quarter, since the revenue and the related costs and taxes would be recognized on the delivery of the completed units. 4 Cash and cash equivalents Parent company Consolidated Description 9/30/ /31/2015 9/30/ /31/2015 Cash and banks ,949 83,296 Cash equivalents - financial investments 350, , , ,328 Total 351, , , ,624 The Company's investments are made through investment funds or in transactions performed directly with leading financial institutions. The Company's policy is to only invest resources in funds or directly in conservative, highly liquid financial instruments. These financial instruments have yields linked to the Interbank Deposit Certificate (CDI) rate, ranging from 90% to 104.7% of CDI, according to the nature and timing of each instrument. At September 30, 2016, the average annual gross remuneration on the financial instruments of the Company in the last twelve months corresponded to 100.8% of CDI. 14 of 80

19 5 Trade receivables Parent company Consolidated Trade receivables - real estate development (a) 9/30/ /31/2015 9/30/ /31/2015 Completed units 5,715 3, , ,060 Incomplete units , ,645 Trade receivables - land sold - - 2,805 1,003 (-) Adjustment to present value - - (15,080) (18,393) (-) Discount on securitization (9) 5,715 3, , ,306 Trade receivables - services rendered Management of construction work Real estate intermediation - - 1, Construction contracts , ,513 Other services , , ,219 6,177 4,388 1,174,508 1,274,525 Current portion 6,153 4,224 1,012,434 1,122,388 Non-current portion , ,137 (a) As a result of the revenue recognition criteria, the balance of trade receivables from incomplete units sold is not fully reflected in the quarterly information, since its recording is limited to the portion of revenue recognized, net of installments already received. Note 18.4 presents the balances receivable not recognized in the quarterly information. The consolidated balance of trade receivables and December 31, 2015 is presented net of adjustments to present value amounting to R$ 15,080 and R$ 18,393, respectively. The Company calculated the net present value of trade receivables from units not completed and accounted for the respective amount under the criteria described in CPC 12. At September 30, 2016 and December 31, 2015, the average discount rate of 7.20% was applied, as presented in the National Treasury Note (NTN-B) coupon. Trade receivables from real estate sales are restated according to the National Civil Construction Index (INCC) variation until the occupancy permit has been registered. After the registration of the occupancy permit, these amounts are restated at the General Market Price Index (IGP-M) rate and bear interest of 12% p.a. No provision for impairment is recorded for trade receivables from sales of real estate units, since possession is only granted to a customer when there is no outstanding financial liability with the Company. Therefore, the recoverability of the receivables is fully guaranteed since sales contracts for real estate units establish the termination of a contract in the case of default on payments, after which the Company has the right to resell the real estate unit. 15 of 80

20 The composition of trade receivables from real estate development and services rendered at September 30, 2016 and December 31, 2015, which are recorded in current assets in the quarterly information, is as follows: Consolidated 9/30/ /31/2015 Not yet due 1Q16-565,116 2Q16-184,573 3Q16-212,569 4Q16 473,767 75,057 1Q17 349,196-2Q17 98,977-3Q17 22, ,038 1,037,315 Overdue For up to 30 days 9,742 18,345 From 31 to 60 days 9,188 3,758 From 61 to 90 days 4,276 9,127 From 91 to 120 days 2,896 3,205 From 121 to 150 days 1,625 3,357 From 151 to 180 days 1,968 6,595 More than 180 days 38,701 40,686 68,396 85,073 1,012,434 1,122,388 The maturity of amounts not yet due, recorded in non-current assets and December 31, 2015, is scheduled as follows: 9/30/ /31/2015 Up to December ,543 69,066 Up to December ,835 34,156 Up to December ,137 15,393 December 2019 onwards 58,559 33, , , of 80

21 6 Inventories Inventories refer to land to be developed, completed real estate units and real estate units under construction, as follows: 6.1. Land to be developed Per venture (Parent company) 9/30/ /31/2015 Land of venture Taruma Ari 9,916 9,916 Land of venture Cachamorra Rossi 9,300 - Land of venture Estrada do Bom Retiro 5,616 - Land of venture Guarulhos 5,200 - Land of venture Jardim Novo Horizonte 5,062 5,063 Land of venture Av. das Flores 5,000 - Land of venture Nova Caucaia 4,395 - Land of venture Grão Pará 1,649 1,649 Land of venture Ikeda - 38,776 Land of venture Santissimo - 8,307 Land of venture Renato Kehl - 4,704 Total parent company 46,138 68,415 Per SCP, SPE or venture (subsidiaries) Alcobaça Construções e Empreendimentos Imobiliários SPE Ltda. 176, ,240 Canário Engenharia Ltda. 126, ,237 Alto Buritis Participações Societárias Ltda. 110, ,082 Rio Real Empreendimentos Imobiliários Ltda. 74,608 74,500 Alto Santo Empreendimentos Imobiliarios Ltda. 61,110 - Direcional Taguatinga Engenharia Ltda. 57,272 60,095 Jequia Empreendimentos Imobiliários Ltda. 48,912 40,404 Munique Empreendimentos Imobiliarios Ltda. 38,806 - Água Branca Empreendimentos Imobiliários Ltda. 32,637 32,606 Jardim Amaralina Empreendimentos Imobiliários SPE Ltda. 31,316 - Vinhedo Empreendimentos Imobiliarios Ltda. 30,846 30,340 Altos Pilares Empreendimentos Imobiliários Ltda. 27,351 27,087 Rio Verde Empreendimentos Imobiliários Ltda. 24,508 24,513 Direcional Santo Antônio Empreendimentos Imobiliários Ltda. 23,917 23,872 Xapuri Empreendimentos Imobiliários Ltda. 23,809 23,224 Napoli Empreendimentos Imobiliários Ltda. 23,385 23,383 Pedra Branca Empreendimentos Imobiliários Ltda. 22,226 21,854 Riachos Empreendimentos Imobiliários Ltda. 20,679 20,287 Portal das Rosas Empreendimentos Imobiliários Ltda. 19,954 19,247 Direcional Jordão Empreendimentos Imobiliários Ltda. 19,854 18,267 Direcional Safira Empreendimentos Imobiliarios Ltda. 18,541 18,359 Coral Empreendimentos Imobiliarios Ltda. 17,325 17,135 Água Marinha Empreendimentos Imobiliários Ltda. 17,150 28,444 Boa Nova Empreendimentos Imobiliarios Ltda. 17,010 - Direcional Feijo Empreendimentos Imobiliarios Ltda. 16,569 14,999 Maranguape Empreendimentos Imobiliários Ltda. 16,384 - Direcional Construtora Valparaíso Ltda. 15,564 15,564 Colina Empreendimentos Imobiliarios SPE Ltda. 14,129 14,061 Santa Margarida Empreendimentos Imobiliarios Ltda. 13,561 13,554 Ouro Branco Empreendimentos Imobiliários Ltda. 13,089 3,885 Riacho Branco Empreendimentos Imobiliários Ltda. 12,873 21,165 Bello Villarinho Empreendimentos Imobiliarios SPE LTDA. 12,679 12,257 Juazeiro Empreendimentos Imobiliarios LTDA. 12,579 12,174 Catalão Empreendimentos Imobiliários Ltda. 11,729 - Bella Carioca Empreendimentos Imobiliários SPE LTDA. 11,338 9,339 Carneiros Empreendimentos Imobiliários Ltda. 10,855 7,805 Direcional Âmbar Empreendimentos Imobiliarios Ltda. 10,755 10,122 Direcional Rubi Empreendimentos Imobiliarios Ltda. - 23,624 Muqui Empreendimentos Imobiliários SPE Ltda. - 13,101 Ipanema Empreendimentos Imobiliarios SPE Ltda. - 13,010 Borba Empreendimentos Imobiliários SPE Ltda. - 12,602 Other 130, ,454 Total consolidated 1,413,862 1,303, of 80

22 Parent company Consolidated Description 9/30/ /31/2015 9/30/ /31/2015 Current , ,224 Non-current 46,138 68,415 1,237,141 1,134,083 46,138 68,415 1,413,862 1,303, Completed real estate units Per SCP, SPE or venture (subsidiaries) 9/30/ /31/2015 Azurita Empreendimentos Imobiliarios Ltda. 31,846 20,401 Tarauaca Empreendimentos Imobiliários Ltda. 27,043 25,783 Agua das Flores Empreendimentos Imobiliários Ltda. 12,837 - Palmeira Empreendimentos Imobiliários Ltda. 12,459 9,116 Direcional Porto Acre Empreendimentos Imobiliarios Ltda. 11,938 18,714 Mar Turmalina Empreendimentos Imobiliarios Ltda. 10,162 - SCP - Direcional/ASCC/Diedro-Eliza Miranda 8,440 6,780 Direcional Esmeralda Empreendimentos Imobiliarios Ltda. 5,745 8,109 Capixaba Empreendimentos Imobiliarios Ltda. 2, Ametista Empreendimentos Imobiliarios Ltda. 2,194 - Jonasa Empreendimentos Imobiliários Ltda. 2,180 2,042 Una Empreendimentos Imobiliarios Ltda. 1,605 4,122 Direcional Patrimar Maragogi Empreendimentos Imobiliarios Ltda. 1,565 1,567 Direcional Rubi Empreendimentos Imobiliarios Ltda. 1,511 2,018 Abaré Empreendimentos Imobiliários Ltda. 1,459 1,633 Direcional Âmbar Empreendimentos Imobiliarios Ltda. 1,106 1,235 SCP - Direcional/ACR - Lago 918 2,271 Ônix Empreendimentos Imobiliários Ltda ,474 Alexandrita Empreendimentos Imobiliarios Ltda SCP - Direcional/ACR - Paradiso 803 1,540 Seabra Empreendimentos Imobiliarios Ltda ,198 Trincheiras Empreendimentos Imobiliários Ltda ,108 Direcional Taguatinga Engenharia Ltda ,411 Other 2,792 3,852 Total consolidated 142, , of 80

23 6.3. Real estate units under construction Per SCP, SPE or venture (subsidiaries) 9/30/ /31/2015 Direcional Zircone Empreendimentos Imobiliarios Ltda. 158, ,100 Jequia Empreendimentos Imobiliários Ltda. 42,229 24,127 Cajueiro Empreendimentos Imobiliários Ltda. 32,602 31,883 Arapiraca Empreendimentos Imobiliarios Ltda. 32,249 30,877 Direcional Rubi Empreendimentos Imobiliarios Ltda. 25,650 - Geminiano Projeto 01 Empreendimentos Imobiliários SPE Ltda. 23,613 16,266 Direcional Jordão Empreendimentos Imobiliários Ltda. 16,427 18,687 Direcional Taguatinga Engenharia Ltda. 14,747 9,085 Riacho Branco Empreendimentos Imobiliários Ltda. 14,566 - Lagoa Empreendimentos Imobiliários Ltda. 13,692 4,026 Muqui Empreendimentos Imobiliários SPE Ltda. 13,497 - Nova Estoril Empreendimentos Imobiliários Ltda. 9,262 - Ouro Branco Empreendimentos Imobiliários Ltda. 8,734 1,935 Colina de Santana Empreendimentos Imobiliários SPE Ltda. 6,479 5,595 Guarinos Empreendimentos Imobiliários Ltda. 5,290 5,643 Mirante Empreendimentos Imobiliários SPE Ltda. 5,216 2,317 Água Marinha Empreendimentos Imobiliários Ltda. 5,093 - Genebra Empreendimentos imobiliarios Ltda. 4,776 6,526 Residencial Florence Park SPE Ltda. 4,388 5,965 Direcional Azeviche Empreendimentos Imobiliários Ltda. 4, Direcional Coruripe Empreendimentos Imobiliários Ltda. 3,417 2,848 Nova Campinas Empreendimentos Imobiliários Ltda. 1,805 4,505 Azurita Empreendimentos Imobiliarios Ltda ,221 Ônix Empreendimentos Imobiliários Ltda ,621 Mar Turmalina Empreendimentos Imobiliarios Ltda. - 10,017 Agua das Flores Empreendimentos Imobiliários Ltda. - 6,456 Direcional Turquesa Empreendimentos Imobiliários SPE S.A. - 6,162 Ametista Empreendimentos Imobiliarios Ltda. - 3,949 Other 2,381 3,432 Total consolidated 449, , Capitalized interest Interest paid on project financing is accounted for as real estate under construction and completed real estate units, in accordance with OCPC 01, and charged to the results when the real estate is sold. At September 30, 2016, interest amounting to R$ 50,666 (R$ 61,073 at December 31, 2015) was capitalized in properties for sale accounts and the amount of R$ 38,552 (R$ 29,902 at December 31, 2015) remained capitalized in respect of unsold units. The average annual rate utilized for interest capitalization was 12.46% in the third quarter of 2016 (12.65% for the year ended December 31, 2015). 19 of 80

24 7 Related parties 7.1. Related companies Assets Parent company Consolidated Receivables - partners in projects (a) 9/30/ /31/2015 9/30/ /31/2015 Citycasa Incorporações Imobiliária Ltda. 3,197 3,995 16,722 17,721 RPS Engenharia - - 2,873 3,802 Ager Incorporações Imobiliárias Ltda. 5,079 6,068 11,259 7,255 Alaforte Empreendimentos e Participações Ltda ,718 5,262 Costa Novaes Luppha Living Empreend. Imobiliários Ltda ,217 1,254 Via Magma Construções Empreendimentos Ltda. - 3,154 4,456 6,877 SPL Engenharia Eólica Construtora Ltda Seven Engenharia Ltda ,638 3,637 Somattos Engenharia e Comércio Ltda Other ,058 3,987 Current account - projects (b) 9,244 13,258 65,603 50,889 Seabra Empreendimentos Imobiliários Ltda ,635 4,813 Jatuarana Empreendimentos Imobiliários Ltda. 4,999 4, SCP Jardim Carandá 2,692 2, Direcional Opala Empreendimentos Ltda. 1,058 1, SCP Floramar 11,350 7,576 11,350 7,576 Direcional Construtora Valparaíso Ltda. 1,979 1, Alexandrita Empreendimentos Imobiliários Ltda. 2, Grande Vereda Empreendimentos Imobiliários Ltda. 4, SCP Viver Melhor Sorocaba 2, Satuba Empreendimentos Imobiliários Ltda. 2, Direcional Poranga Empreendimentos Imobiliários Ltda. 1, Ouro Branco Empreendimentos Imobiliários Ltda. 4, Direcional TSC Rio Madeira Empreendimentos Imobiliários Ltda. 1, Direcional Esmeralda Empreendimentos Imobiliários Ltda. 1, Turquesa Empreendimentos Imobiliários Ltda. 4, SPE Jardim Amaralina 8, Other 4,798 21, ,900 40,189 16,032 12,464 69,144 53,447 81,635 63,353 Current 59,959 40,230 72,450 50,104 Non-current 9,185 13,217 9,185 13, of 80

25 Liabilities Parent company Consolidated Payables - partners in projects (a) 9/30/ /31/2015 9/30/ /31/2015 Costa Novaes Luppha ,143 Ager Incorporações Imobiliárias Ltda SPL Engenharia Ltda DC Empreendimentos Imobiliarios Edifica Empreendimento Arq. e Engenharia S.A Forcasa Incorporações Imob. Ltda ,087 Trisul S.A ,130 - Other ,968 2,708 Current account - projects (b) ,501 8,567 Direcional Turquesa Empreend. Imobiliários Ltda. 32,290 20, Seabra Empreendimentos Imobiliários Ltda. 10,298 7, Mirante Empreendimentos Imobiliários Ltda. 5,333 5, Agua das Flores Empreendimentos Imobiliários Ltda. 1,843 3, Capela Empreendimentos Imobiliários Ltda. 2,035 2, Direcional Coruripe Empreendimentos Imobiliários Ltda. 1,025 1, SCP Parque dos Resedás SCP Bosque Azul Ouro Branco Empreendimentos Imobiliários Ltda. - 1, Other 1,424 1, ,351 42, ,676 42,419 14,501 8,567 Current 35,496 23,239 14,501 8,549 Non-current 19,180 19, (a) Receivables - partners in projects The Company provides loans to certain partners, usually non-controlling partners of the SPEs. These transactions are settled on the completion of the construction and are indexed to the CDI plus a spread of up to 4.13% p.a. or to the General Market Price Index (IGP-M) plus a spread of up to 1% p.m. These transactions are guaranteed by the proceeds of the ventures, so that the partners' right to profit-sharing is conditional on the settlement of the transactions. (b) Current account - projects These non-interest bearing operations are exclusively intended to provide funds for construction. 21 of 80

26 7.2. Management compensation The total annual compensation of the Board of Directors and Executive Board approved for 2016 and the compensation paid in 2015 are as follows: 2016 Board of Directors Statutory Audit Board Statutory Executive Board Total Number of members (*) Annual fixed remuneration (R$) ,042 2,942 Variable compensation (R$) 81-1,532 1,613 Stock-option-based compensation (R$) 130-2,925 3, ,499 7, Board of Directors Statutory Audit Board Statutory Executive Board Total Number of members (*) Annual fixed remuneration (R$) ,823 2,718 Stock-option-based compensation (R$) ,350 3,283 (*) The number of members of the Board of Directors, Statutory Audit Board and Statutory Executive Board was calculated pursuant to the CVM//SEP Official Letter 01/2014. The Company also provides its management with a stock option plan, which is described in Note 22. The Company offers no private pension plans, retirement plans or post-employment benefits. 22 of 80

27 8 Investments in subsidiaries and joint ventures (parent company quarterly information) (a) The changes in investments for the period ended September 30, 2016 were as follows: Parent company Subsidiaries Holding 12/31/2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 9/30/2016 SCP Direcional Comim Meu Orgulho % (150) Andrade Valladares Residencial Ltda. SCP Sarandi 50.00% (3) Portal das Rosas Empreendimentos Imobiliários Ltda % 10,632 - (127) ,307 Santo Antonio Empreendimentos Imobiliários Ltda % 23, ,980 Direcional Arapiraca Empreendimentos Imobiliários Ltda % 37,294-9,500 (17,757) 29,037 SCP Direcional/Eolica/SPL Retiro dos Artistas 50.00% Direcional Xapuri Empreendimentos Imobiliários Ltda % 15,493 - (54) ,806 Lagoa Empreendimentos Imobiliários Ltda % 17,946 - (1,413) 2 16,535 Tarauaca Empreendimentos Imobiliários Ltda % 36,238-1,456 8,805 46,499 Direcional Igaci Empreendimentos Imobiliários Ltda. 0.00% 8, (8,087) - Direcional Cajueiros Empreendimentos Imobiliários Ltda % 18,431 - (1,685) 12,316 29,062 Riachos Empreendimentos Imobiliários Ltda % 20, ,658 Direcional Alegre Empreendimentos Imobiliários Ltda % 6,786 - (234) 379 6,931 SCP Boa Casa % (22) Direcional Carneiros Empreendimentos Imobiliarios Ltda % ,429 Direcional Agua Branca Empreendimentos Imobiliarios Ltda % 6, ,530 Direcional Coruripe Empreendimentos Imobiliarios Ltda % 1,470 (382) 2,276 3,738 7,102 SCP Direcional Alterosa Empreendimentos Imobiliarios Ltda % (477) Direcional Leopoldina Empreendimentos Imobiliarios Ltda % (182) - - SCP Bairro Carioca 99.90% 1,208 - (2,133) 834 (91) Direcional Sena Madureira Empreend. Imobiliarios Ltda % 12,608 - (22) (12,586) - Direcional Trincheiras Empreendimentos Imobiliarios Ltda % 17,098 (8,704) 338 (56) 8,676 Direcional Aguas das Flores Empreend. Imobiliarios Ltda % 22,787 (4,745) (2,144) 2,476 18,374 Direcional Camaragibe Empreendimentos Imobiliarios Ltda % of 80

28 Subsidiaries Holding 12/31/2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 9/30/2016 Direcional Jequia Empreendimentos Imobiliarios Ltda % 761 (24,329) 37,935 9,733 24,100 Direcional Palmeira Empreendimentos Imobiliarios Ltda % 1,088 - (3,762) 5,689 3,015 SCP Aterrado do Leme 75.00% 2, (1,523) - 1,083 SCP Macapa 99.90% 1,656 - (6,802) 8,558 3,412 Direcional Ouro Branco Empreendimentos Imobiliarios Ltda % 27,565 2,040 7,050 (3,066) 33,589 SCP Direcional/Diedro/ASCC Eliza Miranda Manaus 40.00% 8, ,005 SCP Ricaho Fundo 0.00% (904) Japaratinga Empreendimentos Imobiliários Ltda % Direcional Pilar Empreendimentos Imobiliarios Ltda % 1,264 - (2) 287 1,549 SCP Porto Velho 99.90% 6,860 (970) (1,214) 252 4,928 SCP Orgulho Tropical 99.90% 8,147 (3,324) (2,799) (2,381) (357) SCP Orgulho do Ceara 99.90% 6,457-2,328 7,326 16,111 Jundiá Empreendimentos Imobiliários Ltda % (340) SCP Direcional/DAN/GFernandes Jacunda 88.00% 12,881 (3,855) (736) - 8,290 Direcional Santana Empreendimentos Imobiliários Ltda % 8, ,663 11,183 Direcional Jordão Empreendimentos Imobiliarios Ltda % 18,159 - (830) 2,253 19,582 Direcional SPL Ponciano Empreendimentos Imobiliarios Ltda % (185) (215) (562) 2,151 1,189 Rubelita Empreendimentos Imobiliários Ltda % (29) Direcional Silvestre Empreendimentos Imobiliários Ltda % 3,342 (519) 149-2,972 SCP Direcional/ACR Ouro Preto (Gran Parque) 97.19% 55 - (38) 3 20 Direcional Brasileia Empreendimentos Imobiliários Ltda % 1, (226) 60 1,031 Direcional São Primiano Empreendimentos Imobiliarios Ltda % (4) 552 1,163 Santa Margarida Empreendimentos Imobiliários Ltda % 13, ,557 Belo Monte Empreendimentos Ltda % Direcional Taguatinga Engenharia Ltda % 97,239 (10,135) 5,188 (844) 91,448 SCP Parque Paranoa 99.90% 16,417 - (9,479) 5,904 12,842 SCP Parque Carioca 99.90% (269) - (1,142) 841 (570) Direcional Linhares Empreendimentos Imobiliários Ltda % 1, ,191 SCP Parque dos Resedas 50.00% 784 (15) (40) SCP Bosque Azul 50.10% 3,655 (246) 283-3,692 SCP Jardim Caranda 70.00% 7,874 - (3,917) 4,914 8, of 80

29 Subsidiaries Holding 12/31/2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 9/30/2016 SCP Buritizal 99.90% 2,055 (1,553) (2,083) 3,856 2,275 SCP Orgulho de Minas II 99.90% (319) - (118) 183 (254) Direcional Canario Engenharia Ltda % 56,785 - (67) 1,356 58,074 SCP Serra de Minas 99.90% 2,560 - (894) (692) 974 SCP Viver Melhor Marituba 99.90% 13,108 (13,351) 2,274 4,399 6,430 Direcional Murici Empreendimentos Imobiliários Ltda % 27,552 (33,638) 16,724 (2,984) 7,654 SCP Morar Melhor Porto Velho 99.90% 10,616-7,060 (3,792) 13,884 SCP Colonia Carioca 99.90% 3,866 - (4,174) 4,702 4,394 Limoeiro Empreendimentos Imobiliários Ltda % 1,944 (1,900) 3,009 (2,699) 354 Direcional Poranga Empreendimentos Imobiliários Ltda % 14,706 (10,919) 6,798 (65) 10,520 Grande Vereda Empreendimentos Imobiliários Ltda % (992) (4,243) 7, ,739 Altana Empreendimentos Imobiliários Ltda % Direcional Nordestina Empreendimentos Imobiliários Ltda % Muqui Empreendimentos Imobiliários Ltda % 3,879 (770) 1,760 (1,793) 3,076 Mirante Empreendimentos Imobiliários Ltda % 1,636 (750) 4, ,983 SCP Viver Melhor Sorocaba 70.00% 2,235 - (763) (1,000) 472 Bela Cruz Empreendimentos Imobiliários Ltda % 9, ,922 Satuba Empreendimentos Imobiliários Ltda % 41,825 (62,325) 42,475 (4,965) 17,010 Rio Verde Empreendimentos Imobiliários Ltda % 1, (7) 1,732 Direcional Viçosa Empreendimentos Imobiliários Ltda % 9,763 (207) 4, ,925 Direcional Campinas Engenharia Ltda % 7,708 (2,587) 2,024 (5,719) 1,426 Rio Real Empreendimentos Imobiliários Ltda % 8, ,678 Pedra Branca Empreendimentos Imobiliários Ltda % 7, ,046 8,074 Direcional Barreirinha Empreendimentos Imobiliários Ltda % 38,704-23,726 (2,642) 59,788 Borba Empreendimentos Imobiliários Ltda % 1,547 - (1,902) SCP Jardim Açucena 99.90% 15,323 (8,662) 728 (4,744) 2,645 SCP Cidade Jardim 99.90% 37,517 (40,171) 42,074 (16,467) 22,953 Alcobaça Empreendimentos Imobilíários Ltda % 17, ,057 Bairro Novo RJ01 Empreendimentos Imobiliários Ltda % 2,754 - (2) 2,026 4,778 Petiolare Empreendimentos S.A % 1, ,217 Ipanema Empreendimentos Imobiliários Ltda % 49 - (49) of 80

30 Subsidiaries Holding 12/31/2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 9/30/2016 SCP Vera Cruz 99.90% 12,016-1,860 6,418 20,294 SCP Irmãos Marista 99.90% 3, ,059 Canavieiras Empreendimentos Imobiliários SPE Ltda % (2) 908 Itaguai Empreendimentos Imobiliários SPE Ltda % Napoli Empreendimentos Imobiliários Ltda % 23, ,385 Valença Empreendimentos Imobiliários Ltda % Itapema Empreendimentos Imobiliários SPE Ltda % ,557 2,008 Paratinga Empreendimentos Imobiliários Ltda. 0.00% (961) - Bergamo Empreendimentos Imobiliarios Ltda % Vinhedo Empreendimentos Imobiliarios Ltda % Residencial Florence Park SPE Ltda % 2,822 (80) (134) (784) 1,824 Castanheiras Empreendimentos Imobiliarios Ltda % 2,189 - (9) 236 2,416 Anapu Empreendimentos Imobiliarios Ltda % 5, ,849 Conde Empreendimentos Imobiliarios Ltda % 3, ,374 Juazeiro Empreendimentos Imobiliarios Ltda % ,241 Genebra Empreendimentos Imobiliarios Ltda % 1, ,251 3,416 Florenca Empreendimentos Imobiliarios Ltda % Almeria Empreendimentos Imobiliarios Ltda % 1,701 - (507) 758 1,952 Oslo Empreendimentos Imobiliários Ltda % Brescia Empreendimentos Imobiliarios Ltda % Munique Empreendimentos Imobiliarios Ltda % Direcional Construtora Valparaiso Ltda % (467) (114) SCP Direcional / MRV Serra da Canastra 50.00% Jonasa Empreendimentos Imobiliários Ltda % 27,863 (7,921) (3,651) 2,748 19,039 SCP - Direcional/Edifica - Edificio Chopin 79.00% Direcional Diamante Empreendimentos Imobiliários Ltda % 49,881 - (3,261) (9,417) 37,203 Ametista Empreendimentos Imobiliários Ltda % 19,814 - (9,252) (404) 10,158 Direcional Opala Empreendimentos Imobiliários Ltda % 3, (1,067) 2,410 Direcional Esmeralda Empreendimentos Imobiliários Ltda % 9,326 (3,300) (135) - 5,891 Direcional Safira Empreendimentos Imobiliários Ltda % 5,677 - (414) (2,092) 3,171 Direcional Rubi Empreendimentos Imobiliários Ltda % 48,222 (5,267) (3,697) (4,444) 34,814 Direcional Ambar Empreendimentos Imobiliários Ltda % 11,094 (41) (518) , of 80

31 Subsidiaries Holding 12/31/2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 9/30/2016 SCP Direcional /Aterpa Santa Ines 50.00% SCP Direcional Gran Riserva 98.10% 877 (124) SCP Direcional Paradiso 98.10% (343) (180) 363 SCP Direcional/ACR Maura Valadares 98.10% 193 (251) SCP Direcional ACR/ Lago Sul 98.10% 4,313 (1,909) 1,605 (233) 3,776 Direcional TSC Rio Madeira Empreend. Imobiliários Ltda % (1,847) - (62) 1,584 (325) Direcional TSC Jamari Empreendimentos Imobiliários Ltda % 1,095 - (979) Direcional TSC Jatuarana Empreend. Imobiliários Ltda % (2,678) (492) (1,498) 183 (4,485) SCP Le Parc de France 98.10% SCP Direcional / Aterpa Cidade Nova 50.00% SCP Direcional/ACR Santa Monica 98.10% (184) - (68) 1 (251) Onix Empreendimentos Imobiliários Ltda % 52,685 (62) (686) (24,065) 27,872 Malaquita Empreendimentos Imobiliários Ltda % 8, ,186 Una Empreendimentos Imobiliários Ltda % 8,425 (3,757) 2, ,654 Alexandrita Empreendimentos Ltda % 1,796 (230) ,880 Bujari Empreendimentos Imobiliários Ltda % (45) (6) 918 Coral Empreendimentos Imobiliários Ltda % 17,428 - (50) ,609 Zircone Empreendimentos Imobiliários Ltda % 96,043 - (25,568) 58, ,217 SCP Direcional / Lasa Life Residence 50.00% 34 - (63) 25 (4) Jaspe Empreendimentos Imobiliários Ltda % Direcional Corretora de Imoveis SA % (3,198) 3, Azurita Empreendimentos Imobiliários Ltda % 28,172 (15,789) (738) (5,181) 6,464 Abare Empreendimentos Imobiliários Ltda % 23,819 (2,514) (3,183) (6,718) 11,404 Agua Marinha Empreendimentos Imobiliários Ltda % 20, (577) 3,735 23,681 Direcional Turquesa Empreendimentos Imobiliários Ltda % 27,697 (4,177) ,006 36,185 Flourita Empreendimentos Imobiliários Ltda % 11,540 (11,300) ,141 Direcional Azeviche Empreendimentos Imobiliarios Ltda % 5,427-2,182-7,609 SCP Direcional / Capla Brasilia % 3 - (2) 1 2 Arinos Empreendimentos Imobiliários Ltda % Direcional Assis Brasil Empreendimentos Imobiliários Ltda % Citrino Empreendimentos Imobiliários Ltda % (6) (6) Turmalina Empreendimentos Imobiliários Ltda % 6,527 - (2,359) 5,136 9, of 80

32 Subsidiaries Holding 12/31/2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 9/30/2016 SCP Direcional Pretopolis 99.90% 6 - (1) 1 6 SCP Direcional Ozias Monteiro 99.90% 8 - (3) Seabra Empreendimentos Imobiliários Ltda % 19,902 - (1,186) - 18,716 Maragogi Empreendimentos Imobiliários Ltda % 2,465 - (6) (1,000) 1,459 SCP Cidadao XI 99.90% SCP Pro-Moradia II 99.90% 12,690 - (2,249) (456) 9,985 Capela Empreendimentos Imobiliários Ltda % 2,096 - (104) 53 2,045 Direcional Porto Acre Empreendimentos Imobiliários Ltda % 12,884 - (1,656) 13,173 24,401 Direcional Feijo Empreendimentos Imobiliários Ltda % 12,721 - (9) 1,694 14,406 Capixaba Empreendimentos Imobiliários Ltda % 12,971 (2,566) (1,559) 5,974 14,820 SCP Direcional /SPL Campinas 50.00% (46) - (194) 148 (92) SCP Meu Orgulho 99.90% (839) - (555) 1,060 (334) Geminiano Projeto 01 Empreendimentos Imobiliários Ltda % 21,113 (2,515) 381 8,486 27,465 Direcional Rio Branco Empreendimentos Imobiliários Ltda % 5, ,745 6,872 Direcional Sodalita Empreendimentos Imobiliarios Ltda % 2,956 - (1) 214 3,169 SCP Direcional/Lucas/Tulio Club House % 3,530 (1) (400) 29 3,158 Catalão Empreendimentos Imobiliários Ltda % - - (12) Maranguape Empreendimentos Imobiliários Ltda % Jardim Amaralina Empreendimentos Imobiliários SPE Ltda % - (112) - 13,510 13,398 Novo Oriente Empreendimentos Imobiliarios Ltda % Itapetininga Empreendimentos Imobiliarios Ltda % - - (18) Campos Verdes Empreendimentos Imobiliarios Ltda % ,470 1,470 Jupia Empreendimentos Imobiliários Ltda % - - (10) 10 - Olímpia Empreendimentos Imobiliarios Ltda % Nova Estoril Empreendimentos Imobiliários Ltda % - - (470) 9,667 9,197 1,506,050 (298,730) 123, ,837 1,445, of 80

33 Joint ventures Holding 12/31/2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 9/30/2016 Andrade Valladares Residencial Ltda. SCP Floramar 50.00% 24,617 (3,775) (1,135) 8,045 27,752 Maura Valadares Gontijo SPE Ltda % (136) (2) 36 Shopping Plaza Macaé S.A % ,750 10,750 Bom Sucesso Incorporações e Investimentos Imobiliários S.A % 6, ,894 SCP Direcional/Edifica/Patrimar Chopin 31.00% (11) SCP Direcional/Aterpa Rio de Janeiro 45.00% 6,742 (1,655) (201) - 4,886 Marka Direcional - SCP Vivere Residence Marco Tulio II 50.00% - (165) (11) 1,822 1,646 38,106 (5,583) (1,174) 20,615 51,964 1,544,156 (304,313) 122, ,452 1,497, of 80

34 (b) Consolidated Joint ventures Holding 12/31/2015 Dividends/ amortization Equity in results of investees Capital subscriptio n (reduction)/ AFAC 9/30/2016 Direct investments in joint ventures Andrade Valladares Residencial Ltda. SCP Floramar 50.00% 24,617 (3,775) (1,135) 8,045 27,752 Maura Valadares Gontijo SPE Ltda % (136) (2) 36 Bom Sucesso Incorporações e Investimentos Imobiliários S.A % 6, ,894 Shopping Plaza Macaé S.A % ,750 10,750 SCP Direcional/Edifica/Patrimar Chopin 31.00% (11) SCP Direcional/Aterpa Rio de Janeiro 45.00% 6,742 (1,655) (201) - 4,886 Marka Direcional - SCP Vivere Residence Marco Tulio II 50.00% - (165) (11) 1,822 1,646 38,106 (5,583) (1,174) 20,615 51,964 Indirect investments in joint ventures Holding 12/31/2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 9/30/2016 Ibicela Empreendimentos S.A % (340) (56) - Talauma Empreendimentos S.A % 17 (17) (323) (56) - 37,783 (5,204) (1,174) 20,559 51,964 At September 30, 2016, 59.15% of the Company's assets were included in the equity segregation structure, as established by Law 10,931/ of 80

35 (b) The changes in investments for the period ended December 31, 2015 were as follows: Parent company Subsidiaries Holding 12/31/2014 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afa C 12/31/2015 SCP Direcional / MRV Serra da Canastra 50.00% (12) SCP Direcional /Aterpa Santa Ines 50.00% 27 - (5) - 22 SCP Direcional / Aterpa Cidade Nova 50.00% SCP Direcional / Lasa Life Residence 50.00% 40 - (6) - 34 SCP Direcional / Capla Brasilia % 2 - (2) 3 3 SCP Direcional/Lucas/Túlio Club House % 3,939 - (409) - 3,530 SCP Direcional /SPL Campinas 50.00% (100) - (19) 73 (46) SCP Direcional/Eolica/SPL Retiro dos Artistas 50.00% (230) (1) 245 SCP Direcional/Diedro/ASCC Eliza Miranda Manaus 40.00% 9,787 - (812) (118) 8,857 SCP Direcional/DAN/GFernandes Jacunda 88.00% 15,561 - (1,228) (1,452) 12,881 SCP Direcional/ACR Ouro Preto (Gran Parque) 97.19% 547 (450) (88) Direcional Taguatinga Engenharia Ltda % 108,237 (5,854) 5,417 (10,561) 97,239 Direcional Canario Engenharia Ltda % 53,839 - (120) 3,066 56,785 Altana Empreendimentos Imobiliários Ltda % Direcional Campinas Engenharia Ltda % 5,107-1, ,708 Direcional Construtora Valparaiso Ltda % 6,531 - (1,082) (5,306) 143 Jonasa Empreendimentos Imobiliários Ltda % 48,171 - (377) (19,931) 27,863 SCP Direcional/Edifica Edificio Chopin 79.00% Direcional Diamante Empreendimentos Imobiliários Ltda % 59,247 (221) (4,844) (4,301) 49,881 Ametista Empreendimentos Imobiliários Ltda % 42,952 - (8,876) (14,262) 19,814 Direcional Opala Empreendimentos Imobiliários Ltda % 2, ,348 Direcional Esmeralda Empreendimentos Imobiliários Ltda % 16, (7,396) 9,326 Direcional SAFIRA Empreendimentos Imobiliários Ltda % 15,782 - (1,299) (8,806) 5,677 Direcional Rubi Empreendimentos Imobiliários Ltda % 84,911 (1,905) (1,317) (33,467) 48,222 Direcional Ambar Empreendimentos Imobiliários Ltda % 13,022-2,109 (4,037) 11,094 SCP Direcional Gran Riserva 98.10% 1,087 (35) 87 (262) 877 SCP Direcional Paradiso 98.10% 1,203 (700) (306) SCP Direcional/ACR Maura Valadares 98.10% (9) of 80

36 Subsidiaries Holding 12/31/2014 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afa C 12/31/2015 SCP Direcional ACR/ Lago Sul 98.10% 7,225 (180) (302) (2,430) 4,313 Direcional TSC Rio Madeira Empreendimentos Imobiliários Ltda % 1,808 - (2,105) (1,550) (1,847) Direcional TSC Jamari Empreendimentos Imobiliários Ltda % 1,704 - (351) (258) 1,095 Direcional TSC Jatuarana Empreendimentos Imobiliários Ltda % 5,217 (370) (1,177) (6,348) (2,678) SCP Le Parc de France 98.10% (91) 217 SCP Direcional/ACR Santa Monica 98.10% (55) - 7 (136) (184) Onix Empreendimentos Imobiliários Ltda % 79,262 - (537) (26,040) 52,685 Direcional Sodalita Empreendimentos Imobiliarios Ltda % 2,829 - (11) 138 2,956 Malaquita Empreendimentos Imobiliários Ltda % 7, ,081 Una Empreendimentos Imobiliários Ltda % 17, (8,862) 8,425 Alexandrita Empreendimentos Ltda % 5,778 (1,981) 1,603 (3,604) 1,796 Bujari Empreendimentos Imobiliários Ltda % 5,361 - (192) (4,200) 969 Coral Empreendimentos Imobiliários Ltda % 17, ,428 Zircone Empreendimentos Imobiliários Ltda % 55,815 - (14,410) 54,638 96,043 Jaspe Empreendimentos Imobiliários Ltda % Direcional Corretora de Imoveis S.A % 1,568 - (3,748) 2, Azurita Empreendimentos Imobiliários Ltda % 28,048-2,833 (2,709) 28,172 Abare Empreendimentos Imobiliários Ltda % 23,900 - (1,377) 1,296 23,819 Agua Marinha Empreendimentos Imobiliários Ltda % 14,585 - (121) 5,961 20,425 Direcional Turquesa Empreendimentos Imobiliários Ltda % 42,697 (5,310) 2,395 (12,085) 27,697 Flourita Empreendimentos Imobiliários Ltda % 31,071-2,513 (22,044) 11,540 Direcional Azeviche Empreendimentos Imobiliarios Ltda % 4,661 (3,864) 4,630-5,427 Arinos Empreendimentos Imobiliários Ltda % Direcional Assis Brasil Empreendimentos Imobiliários Ltda % Citrino Empreendimentos Imobiliários Ltda % (6) (6) Turmalina Empreendimentos Imobiliários Ltda % 3,640-1,879 1,008 6,527 SCP Direcional Pretopolis 99.90% (45) SCP Direcional Ozias Monteiro 99.90% 61 - (51) (2) 8 Seabra Empreendimentos Imobiliários Ltda % 22,056 - (2,154) - 19,902 Maragogi Empreendimentos Imobiliários Ltda % 3,224 - (331) (428) 2,465 SCP Cidadao XI 99.90% (28) - 35 (4) 3 SCP ProMoradia II 99.90% 40,261 - (29,850) 2,279 12,690 Capela Empreendimentos Imobiliários Ltda % 3,151 - (78) (977) 2,096 Direcional Porto Acre Empreendimentos Imobiliários Ltda % 12,460 - (2,606) 3,030 12, of 80

37 Subsidiaries Holding 12/31/2014 Dividends/ amortization Equity in results of investees Capital subscription reduction)/afac 12/31/2015 Direcional Feijo Empreendimentos Imobiliários Ltda % 7, ,509 12,721 Capixaba Empreendimentos Imobiliários Ltda % 28,356 (162) 79 (15,302) 12,971 SCP Meu Orgulho 99.90% (97) - (4,250) 3,508 (839) Geminiano Projeto 01 Empreendimentos Imobiliários Ltda % 8,574-11,214 1,325 21,113 Direcional Rio Branco Empreendimentos Imobiliários Ltda % 4,522 - (9) 612 5,125 SCP Direcional Comim Meu Orgulho % 10, (10,564) (150) Andrade Valladares Residencial Ltda. SCP Sarandi 50.00% (9) Portal das Rosas Empreendimentos Imobiliários Ltda % 9,049 - (263) 1,846 10,632 Santo Antonio Empreendimentos Imobiliários Ltda % 23, ,935 Direcional Arapiraca Empreendimentos Imobiliários Ltda % 19,891-2,917 14,486 37,294 Direcional Xapuri Empreendimentos Imobiliários Ltda % 8, ,495 15,493 Lagoa Empreendimentos Imobiliários Ltda % 1-17, ,946 Tarauaca Empreendimentos Imobiliários Ltda % 20,343 - (2,113) 18,008 36,238 Direcional Igaci Empreendimentos Imobiliários Ltda % 7, ,087 Direcional Cajueiros Empreendimentos Imobiliários Ltda % 3,460-1,075 13,896 18,431 Riachos Empreendimentos Imobiliários Ltda % 19, ,072 20,221 Direcional Alegre Empreendimentos Imobiliários Ltda % 10,070 - (739) (2,545) 6,786 SCP Boa Casa % (22) (22) Direcional Carneiros Empreendimentos Imobiliarios Ltda % Direcional Agua Branca Empreendimentos Imobiliarios Ltda % 6, ,486 Direcional Coruripe Empreendimentos Imobiliarios Ltda % 2,350 (475) 3,991 (4,396) 1,470 SCP Direcional Alterosa Empreendimentos Imobiliarios Ltda % (159) Direcional Leopoldina Empreendimentos Imobiliarios Ltda % SCP Bairro Carioca 99.90% (1,950) 2,190 1,208 Direcional Sena Madureira Empreendimentos Imobiliarios Ltda % 11,142-1, ,608 Direcional Trincheiras Empreendimentos Imobiliarios Ltda % 22,876 (1,000) 2,072 (6,850) 17,098 Direcional Aguas das Flores Empreendimentos Imobiliarios Ltda % 6,718-13,291 2,778 22,787 Direcional Camaragibe Empreendimentos Imobiliarios Ltda % Direcional Jequia Empreendimentos Imobiliarios Ltda % (1,427) (7,620) 18,908 (9,100) 761 Direcional Palmeira Empreendimentos Imobiliarios Ltda % 28 - (348) 1,408 1,088 SCP Aterrado do Leme 75.00% 2,734 (442) (292) 591 2,591 SCP Macapa 99.90% 4,400 - (7,872) 5,128 1,656 Direcional Ouro Branco Empreendimentos Imobiliarios Ltda % 16,107 (5,708) 3,638 13,528 27,565 SCP Ricaho Fundo 70.00% (648) - (803) 547 (904) 33 of 80

38 Subsidiaries Holding 12/31/2014 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 12/31/2015 Japaratinga Empreendimentos Imobiliários Ltda % (2) Direcional Pilar Empreendimentos Imobiliarios Ltda % 1, ,264 SCP Porto Velho 99.90% 29,600 - (3,396) (19,344) 6,860 SCP Orgulho Tropical 99.90% 9,407 (1,860) 5,669 (5,069) 8,147 SCP Orgulho do Ceara 99.90% 7,610 (10,214) 16,963 (7,902) 6,457 Jundiá Empreendimentos Imobiliários Ltda % (500) (60) (340) Direcional Santana Empreendimentos Imobiliários Ltda % 6,183-1,094 1,299 8,576 Direcional Jordão Empreendimentos Imobiliarios Ltda % 14, ,171 18,159 Direcional SPL Ponciano Empreendimentos Imobiliarios Ltda % 2,278 (500) (1,374) (589) (185) Rubelita Empreendimentos Imobiliários Ltda % (6) Direcional Silvestre Empreendimentos Imobiliários Ltda % 5,278 (736) 27 (1,227) 3,342 Direcional Brasileia Empreendimentos Imobiliários Ltda % 3,040 - (129) (1,753) 1,158 Direcional São Primiano Empreendimentos Imobiliarios Ltda % (26) (53) 615 Santa Margarida Empreendimentos Imobiliários Ltda % 13, ,550 Belo Monte Empreendimentos Ltda % (1) SCP Parque Paranoa 99.90% 28,249 (11,756) 62,113 (62,189) 16,417 SCP Parque Carioca 99.90% 4,085 - (2,271) (2,083) (269) Direcional Linhares Empreendimentos Imobiliários Ltda % 1, ,180 SCP Parque dos Resedas 50.00% (250) 784 SCP Bosque Azul 50.10% 1 (8,820) 12,479 (5) 3,655 SCP Jardim Caranda 70.00% 235 (965) 1,495 7,109 7,874 SCP Buritizal 99.90% 2,788-5,362 (6,095) 2,055 SCP Orgulho de Minas II 99.90% (610) (60) (319) SCP Serra de Minas 99.90% 2, ,560 SCP Viver Melhor Marituba 99.90% 34,371 (60,073) 12,153 26,657 13,108 Direcional Murici Empreendimentos Imobiliários Ltda % 31,127-16,548 (20,123) 27,552 SCP Morar Melhor Porto Velho 99.90% 30,724 (5,634) 6,187 (20,661) 10,616 SCP Colonia Carioca 99.90% 13,220 - (5,276) (4,078) 3,866 Limoeiro Empreendimentos Imobiliários Ltda % - - 1, ,944 Direcional Poranga Empreendimentos Imobiliários Ltda % 3,480 (2,509) 10,484 3,251 14,706 Grande Vereda Empreendimentos Imobiliários Ltda % 1,172 (4,005) 1, (992) Direcional Nordestina Empreendimentos Imobiliários Ltda % Muqui Empreendimentos Imobiliários Ltda % (273) 3,504 3,879 Mirante Empreendimentos Imobiliários Ltda % 777 (5,364) 5, , of 80

39 Subsidiaries Holding 12/31/2014 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 12/31/2015 SCP Viver Melhor Sorocaba 70.00% 1,317 (2,714) 888 2,744 2,235 Bela Cruz Empreendimentos Imobiliários Ltda % 6, ,923 9,016 Satuba Empreendimentos Imobiliários Ltda % 17,106 (19,099) 55,187 (11,369) 41,825 Rio Verde Empreendimentos Imobiliários Ltda % 1, ,739 Direcional Viçosa Empreendimentos Imobiliários Ltda % 6, ,852 9,763 Rio Real Empreendimentos Imobiliários Ltda % 8, ,569 Pedra Branca Empreendimentos Imobiliários Ltda % 5, ,171 7,028 Direcional Barreirinha Empreendimentos Imobiliários Ltda % 7,916-8,362 22,426 38,704 Borba Empreendimentos Imobiliários Ltda % 1, ,547 SCP Jardim Açucena 99.90% 9,846-6,113 (636) 15,323 SCP Cidade Jardim 99.90% 16,352-18,258 2,907 37,517 Alcobaça Empreendimentos Imobilíários Ltda % 14,028 - (192) 3,878 17,714 Bairro Novo RJ01 Empreendimentos Imobiliários Ltda % 2,264 - (51) 541 2,754 Petiolare Empreendimentos S.A % ,216 Ipanema Empreendimentos Imobiliários Ltda % SCP Vera Cruz 99.90% 6,227-2,042 3,747 12,016 SCP Irmãos Marista 99.90% 2, ,018 Canavieiras Empreendimentos Imobiliários SPE Ltda % Itaguai Empreendimentos Imobiliários SPE Ltda % (64) Napoli Empreendimentos Imobiliários Ltda % ,383 23,383 Valença Empreendimentos Imobiliários Ltda % Itapema Empreendimentos Imobiliários SPE Ltda % Paratinga Empreendimentos Imobiliários Ltda % Bergamo Empreendimentos Imobiliarios Ltda % Vinhedo Empreendimentos Imobiliarios Ltda % Residencial Florence Park SPE Ltda % ,516 2,822 Castanheiras Empreendimentos Imobiliarios Ltda % ,189 2,189 Anapu Empreendimentos Imobiliarios Ltda % ,264 5,426 Conde Empreendimentos Imobiliarios Ltda % ,371 3, of 80

40 Subsidiaries Holding 12/31/2014 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 12/31/2015 Juazeiro Empreendimentos Imobiliarios Ltda % Genebra Empreendimentos Imobiliarios Ltda % ,275 1,578 Florenca Empreendimentos Imobiliarios Ltda % Almeria Empreendimentos Imobiliarios Ltda % ,701 1,701 1,541,997 (170,526) 243,388 (108,809) 1,506,050 Joint ventures Holding 12/31/2014 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 12/31/2015 Andrade Valladares Residencial Ltda. SCP Floramar 50.00% 21,571 (1,960) (1,651) 6,657 24,617 Maura Valadares Gontijo SPE Ltda % (124) - (36) 24 (136) Alexandria Empreendimentos Imobiliarios Ltda % (65) Bom Sucesso Incorporações e Investimentos Imobiliários S.A % 6,892 (10) (5) 17 6,894 Ernane Agricola Empreendimentos Imobiliários Ltda % (396) - Diresomattos Gutierrez Empreendimentos Imobiliários Ltda % (16) - SCP Direcional/Edifica/Patrimar Chopin 31.00% (12) (11) SCP Direcional/Aterpa Rio de Janeiro 45.00% 8,513 (1,500) (62) (209) 6,742 37,187 (3,470) (1,753) 6,142 38,106 1,579,184 (173,996) 241,635 (102,667) 1,544, of 80

41 Consolidated Joint ventures Holding 12/31/2014 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 12/31/2015 Direct investments in joint ventures Andrade Valladares Residencial Ltda. SCP Floramar 50.00% 21,571 (1,960) (1,651) 6,657 24,617 Maura Valadares Gontijo SPE Ltda % (124) - (36) 24 (136) Alexandria Empreendimentos Imobiliarios Ltda % (65) Bom Sucesso Incorporações e Investimentos Imobiliários S.A 28.00% 6,892 (10) (5) 17 6,894 Ernane Agricola Empreendimentos Imobiliários Ltda % (396) - Diresomattos Gutierrez Empreendimentos Imobiliários Ltda % (16) - SCP Direcional/Edifica/Patrimar Chopin 31.00% (12) (11) SCP Direcional/Aterpa Rio de Janeiro 45.00% 8513 (1,500) (62) (209) 6,742 37,187 (3,470) (1,753) 6,142 38,106 Indirect investments in joint ventures Holding 12/31/2014 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/afac 12/31/2015 Ibicela Empreendimentos S.A 25.73% (365) - (21) 45 (340) Talauma Empreendimentos S.A 25.73% (348) - (21) 45 (323) 36,839 (3,470) (1,774) 6,187 37,783 At December 31, 2015, 81.64% of the Company's assets were included in the equity segregation structure, as established by Law 10,931/ of 80

42 (c) Below is a summary of the balance sheets of the Company's subsidiaries and jointly-controlled companies : Balance sheet - 9/30/2016 Assets Liabilities Subsidiaries Holding Current Non-current Current Non-current Equity SCP Direcional/Comim Meu Orgulho - Infra % (2) SCP - Sarandi - Andrade Valladares Residencial Ltda % 62 1, ,612 Portal das Rosas Empreendimentos Imobiliários Ltda % 19,978 1, ,400 11,319 Direcional Santo Antônio Empreendimentos Imobiliários Ltda % 3 23, ,982 Arapiraca Empreendimentos Imobiliarios Ltda % 59,763 7,421 3,640 31,281 32,263 SCP - Direcional/Eólica - Retiro dos Artistas 50.00% 1, Xapuri Empreendimentos Imobiliários Ltda % 20 23, ,689 15,822 Lagoa Empreendimentos Imobiliários Ltda % 67,051 2,559 51,990 1,068 16,552 Tarauaca Empreendimentos Imobiliários Ltda % 33,445 15,052 1, ,546 Cajueiro Empreendimentos Imobiliários Ltda % 57,521 7,103 26,622 8,911 29,091 Riachos Empreendimentos Imobiliários Ltda % 2,376 20, ,953 Direcional Alegre Empreendimentos Imobiliários Ltda % 84 6, ,938 SCP Boa Casa % Carneiros Empreendimentos Imobiliários Ltda % 1 10, ,409 1,431 Água Branca Empreendimentos Imobiliários Ltda % 7 32, ,100 6,537 Direcional Coruripe Empreendimentos Imobiliários Ltda % 23,590 3,399 18, ,109 SCP - Alterosa Ribeirão das Neves 62.75% SCP - Bairro Carioca 99.90% (91) Sena Madureira Empreendimentos Imobiliários Ltda % Trincheiras Empreendimentos Imobiliários Ltda % 7,921 1, ,676 Agua das Flores Empreendimentos Imobiliários Ltda % 75,773 2,195 52,664 1,596 23,708 Direcional Camaragibe Empreendimentos Imobiliários Ltda % Jequia Empreendimentos Imobiliários Ltda % 210,657 63,703 72, ,620 24,125 Palmeira Empreendimentos Imobiliários Ltda % 19,868 2,957 10,554 9,253 3,018 SCP Aterrado do Leme 75.00% 1, , of 80

43 Balance sheet - 9/30/2016 Assets Liabilities Subsidiaries Holding Current Non-current Current Non-current Equity SCP - Macapá 99.90% 7,592 2,143 3,667 2,652 3,416 Ouro Branco Empreendimentos Imobiliários Ltda % 62,495 4,049 12,716 5,844 47,984 SCP - Direcional/ASCC/Diedro-Eliza Miranda 40.00% 14,010 9, ,513 Japaratinga Empreendimentos Imobiliários Ltda % Altos Pilares Empreendimentos Imobiliários Ltda % 5 27, ,771 1,551 SCP - Porto Velho 99.90% 8, ,141 1,828 4,933 SCP - Orgulho Tropical 99.90% 1, , (358) SCP - Orgulho do Ceará 99.90% 17, , ,127 Jundiá Empreendimentos Imobiliários Ltda % SCP - Jacundá 88.00% 8,826 1, ,421 Colina de Santana Empreendimentos Imobiliários SPE Ltda % 8,601 3, ,194 Direcional Jordão Empreendimentos Imobiliários Ltda % 27,598 21,073 9, ,163 Direcional SPL Ponciano Empreendimentos Imobiliarios Ltda % 2, ,378 Rubelita Empreendimentos Imobiliarios Ltda % Direcional Silvestre Ltda % 2,086 1, ,625 SCP - Direcional/ACR - Ouro Preto 97.19% Direcional Brasileia Empreendimentos Imobiliarios Ltda % 2, ,062 Direcional São Primiano Empreendimentos Imobiliarios Ltda % - 1, ,163 Santa Margarida Empreendimentos Imobiliarios Ltda % 2 13, ,557 Direcional Belo Monte Empreendimentos Imobiliários Ltda % 3 1, Direcional Taguatinga Engenharia Ltda % 51,915 58,775 10,737 8,505 91,448 SCP - Parque Paranoa 99.90% 18, , ,855 SCP - Parque Carioca 99.90% , (571) Colina Empreendimentos Imobiliarios SPE Ltda % , ,078 2,382 SCP - Parque dos Resedás 50.00% 1, ,459 SCP - Bosque Azul 50.10% 9, , ,370 SCP - Jardim Carandá 70.00% 19, ,245 1,058 12, of 80

44 Balance sheet - 9/30/2016 Assets Liabilities Subsidiaries Holding Current Non-current Current Non-current Equity SCP - Buritizal 99.90% 3, ,277 SCP - Orgulho de Minas II 99.90% (254) Canário Engenharia Ltda % , ,248 58,132 SCP - Serra de Minas 99.90% 1, SCP - Viver Melhor Marituba 99.90% 14, ,328 1,070 6,437 Murici Empreendimentos Imobiliários SPE Ltda % 12, , ,662 SCP - Viver Melhor Porto Velho 99.90% 19, , ,897 SCP Colonia Carioca 99.90% 5, , ,399 Limoeiro Empreendimentos Imobiliários Ltda % 9,782-9, Poranga Empreendimentos Imobiliários SPE Ltda % 18, , ,027 Grande Vereda Empreendimentos Imobiliarios SPE Ltda % 14, , ,653 Altana Empreendimentos Imobiliarios Ltda % Vilarinho Empreendimentos Imobiliarios SPE Ltda % 1 3, , Muqui Empreendimentos Imobiliários SPE Ltda % 18,683 6,208 1,235 20,577 3,079 Mirante Empreendimentos Imobiliários SPE Ltda % 17,401 17,634 2,610 26,436 5,989 SCP Viver Melhor Sorocaba 70.00% 3, ,305 (1) 674 Bela Cruz Empreendimentos Imobiliários Ltda % 10, ,932 Satuba Empreendimentos Imobiliários Ltda % 28, ,507 1,178 17,027 Rio Verde Empreendimentos Imobiliários Ltda % 2 24, ,770 1,733 Direcional Viçosa Empreendimentos Imobiliários Ltda % , ,473 Alto Buritis Participações Societárias Ltda % 2 127, ,677 24,303 Nova Campinas Empreendimentos Imobiliários Ltda % 6, ,302 1,427 Guarinos Empreendimentos Imobiliários Ltda % 37, , ,395 Rio Real Empreendimentos Imobiliários Ltda % 9 74, ,850 8,686 Pedra Branca Empreendimentos Imobiliários Ltda % ,227 1,725 13,200 8,082 Barreirinha Empreendimentos Imobiliários SPE Ltda % 72, , ,848 Borba Empreendimentos Imobiliários SPE Ltda % of 80

45 Subsidiaries Holding Current Non-current Current Non-current Equity Assets Liabilities SCP Jardim Açucena 99.90% 6, , ,647 SCP Cidade Jardim 99.90% 33, , ,976 Alcobaça Construções e Empreendimentos Imobiliários SPE Ltda % , ,756 18,075 Bello Villarinho Empreendimentos Imobiliarios SPE Ltda % 13, ,779 Bella Carioca Empreendimentos Imobiliários SPE Ltda % 11, ,500 4,779 Petiolare Empreendimentos S.A % - 1, ,217 SCP Vera Cruz 99.90% 24, , ,314 SCP Irmãos Maristas 99.90% 3, ,062 Canavieiras Empreendimentos Imobiliarios SPE Ltda % Itaguai Empreendimentos Imobiliarios SPE Ltda % 136 1, ,499 Napoli Empreendimentos Imobiliários Ltda % 23 23, ,408 Valenca Empreendimentos Imobiliarios Ltda % Catalão Empreendimentos Imobiliários Ltda % - 11,729-11, Itapema Empreendimentos Imobiliários SPE Ltda % 2 2, ,010 Maranguape Empreendimentos Imobiliários Ltda % 16, , Bergamo Empreendimentos Imobiliarios Ltda % - 5,993-5, Marselha Empreendimentos Imobiliarios Ltda % - 8, ,513 - Vinhedo Empreendimentos Imobiliarios Ltda % 30,848-3,501 25,696 1,651 Olímpia Empreendimentos Imobiliarios Ltda % - 5,860-5, Residencial Florence Park SPE Ltda % 16, ,092 12,032 3,647 Castanheiras Empreendimentos Imobiliarios Ltda % 6, ,032 1,565 2,418 Anapu Empreendimentos Imobiliarios Ltda % 5, ,855 Conde Empreendimentos Imobiliarios Ltda % 3 3, ,377 Juazeiro Empreendimentos Imobiliarios Ltda % 12, ,338 1,242 Genebra Empreendimentos Imobiliarios Ltda % 11, ,087 3, of 80

46 Subsidiaries Holding Current Non-current Current Non-current Equity Assets Liabilities Florença Empreendimentos Imobiliarios Ltda % Itaquara Empreendimentos Imobiliarios Ltda % Almeria Empreendimentos Imobiliarios Ltda % 3, ,223 1,954 Oslo Empreendimentos Imobiliários Ltda % 4, , Nova Estoril Empreendimentos Imobiliários Ltda % 10, , ,206 Brescia Empreendimentos Imobiliarios Ltda % - 5,176-4, Itapetininga Empreendimentos Imobiliarios Ltda % 8, , Munique Empreendimentos Imobiliarios Ltda % - 38,806-38, Alto Santo Empreendimentos Imobiliarios Ltda % - 61,110-61,110 - Campos Verdes Empreendimentos Imobiliarios Ltda % 9, ,780 1,471 Novo Oriente Empreendimentos Imobiliarios Ltda % - 7,119-6, Boa Nova Empreendimentos Imobiliarios Ltda % - 17,010-17,010 - Direcional Construtora Valparaíso Ltda % 1,508 16,277 2,098 15,801 (114) Jardim Amaralina Empreendimentos Imobiliários SPE Ltda % ,881 17,383-26,797 SCP - Direcional/MRV - Serra da Canastra 50.00% Jonasa Empreendimentos Imobiliários Ltda % 21,657 2,434 1,157 3,892 19,042 SCP - Direcional/Edifica - Edificio Chopin 79.00% Direcional Diamante Empreendimentos Imobiliarios Ltda % 34,845 4,359 1, ,207 Ametista Empreendimentos Imobiliarios Ltda % 34,471 4,484 25,447 3,349 10,159 Direcional Opala Empreendimentos Imobiliarios Ltda % 1,488 2,738 1, ,457 Direcional Esmeralda Empreendimentos Imobiliarios Ltda % 13, , ,782 Direcional Safira Empreendimentos Imobiliarios Ltda % 2,894 19, ,539 3,171 Direcional Rubi Empreendimentos Imobiliarios Ltda % 36,903 4,421 4,597 1,909 34,818 Direcional Âmbar Empreendimentos Imobiliarios Ltda % 4,076 11,386 1,944 2,636 10,882 SCP - Direcional/Aterpa - Santa Inês 50.00% SCP - Direcional/ACR - Gran Riserva 98.10% SCP - Direcional/ACR - Paradiso 98.10% 1, SCP - Direcional/ACR - Maura Valadares 98.10% of 80

47 Subsidiaries Holding Current Non-current Current Non-current Equity Assets Liabilities SCP - Direcional/ACR - Lago 98.10% 5,503 1, ,630 3,849 Direcional TSC Rio Madeira Empreendimentos Imobiliarios Ltda % , (325) Direcional TSC Jamari Empreendimentos Imobiliarios Ltda % Direcional TSC Jatuarana Empreendimentos Imobiliarios Ltda % 1, , (4,485) SCP - Direcional/ACR - Le Parc de France 98.10% SCP - Direcional/Aterpa - Cidade Nova 50.00% SCP - Direcional/ACR - Santa Mônica 98.10% (256) Ônix Empreendimentos Imobiliários Ltda % 34, ,092 2,984 27,874 Direcional Sodalita Empreendimentos Imobiliarios Ltda % 64 3, ,169 Malaquita Empreendimentos Imobiliarios Ltda % 8 8, ,194 Una Empreendimentos Imobiliarios Ltda % 5,590 2, ,661 Alexandrita Empreendimentos Imobiliarios Ltda % 4, , ,880 Bujari Empreendimentos Imobiliarios Ltda % 1, Coral Empreendimentos Imobiliarios Ltda % 17, ,627 Direcional Zircone Empreendimentos Imobiliarios Ltda % 203,172 37,100 54,879 56, ,230 SCP - Direcional/Lasa - Águas Claras II 50.00% (8) Jaspe Empreendimentos Imobiliarios Ltda % Direcional Corretora de Imóveis S.A % 1, Azurita Empreendimentos Imobiliarios Ltda % 44,565 11,026 1,325 47,796 6,470 Abaré Empreendimentos Imobiliários Ltda % 8,702 4, ,416 Água Marinha Empreendimentos Imobiliários Ltda % 11,416 15, ,312 Direcional Turquesa Empreendimentos Imobiliários SPE S.A % 58,003 1,277 12, ,994 Flourita Empreendimentos Imobiliários Ltda % 1, ,142 Direcional Azeviche Empreendimentos Imobiliários Ltda % 14,598 14,986 14,454 1,346 13,784 SCP - Direcional/Capla - Brasília % Arinos Empreendimentos Imobiliários Ltda % 20 9,395-9, Direcional Assis Brasil Empreendimentos Imobiliários Ltda % 292 6, , of 80

48 Assets Liabilities Subsidiaries Holding Current Non-current Current Non-current Equity Citrino Empreendimentos Imobiliários Ltda % (6) Mar Turmalina Empreendimentos Imobiliarios Ltda % 18, , ,313 SCP - Direcional Petrópolis 99.90% SCP - Direcional Ozias 99.90% (2) Seabra Empreendimentos Imobiliarios Ltda % 20, ,265 18,734 SCP - Direcional/Lucas/Tulio - Club House % 3, ,158 Direcional Patrimar Maragogi Empreendimentos Imobiliarios Ltda % 3, ,242 SCP - Cidadão XI 99.90% SCP - Pro Moradia II 99.90% 10, ,995 Capela Empreendimentos Imobiliários Ltda % 2, ,045 Direcional Porto Acre Empreendimentos Imobiliarios Ltda % 25, ,425 Direcional Feijo Empreendimentos Imobiliarios Ltda % 18 16, ,309 14,420 Capixaba Empreendimentos Imobiliarios Ltda % 10,208 5, ,835 SCP - Direcional SPL Campinas 50.00% (184) SCP - Meu Orgulho 99.90% (335) Geminiano Projeto 01 Empreendimentos Imobiliários SPE Ltda % 84, ,364 19,831 39,236 Riacho Branco Empreendimentos Imobiliários Ltda % 29,032 2, ,692 8,867 SPE Maura Gontijo 50.00% Bom Sucesso Incorporação e Investimentos Imobiliários S.A % 13 27,736 3,127-24,622 Patrimar Cl. Manoel 31.00% Aterpa - Rio de Janeiro 45.00% 10, ,857 Marka Direcional - SCP Vivere Residence Marco Tulio II 50.00% 4, , Andrade Valladares Residencial Ltda. - SCP Floramar 50.00% 73,454 10,065 27, , of 80

49 (d) Below is a summary of the balance sheets of the Company's subsidiaries and jointly-controlled companies at December 31, 2015: Balance sheet - 12/31/2015 Assets Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity SCP Direcional/Eólica Quintas do Valqueire 10.00% (1) SCP Direcional/Comim Meu Orgulho Infra % (150) SCP Sarandi Andrade Valladares Residencial Ltda % 97 1, ,494 Direcional Santa Rosa Empreendimentos Imobiliários Ltda % 19,297 1, ,407 10,643 Direcional Santo Antônio Empreendimentos Imobiliários Ltda % 3 23, ,937 Direcional Arapiraca Empreendimentos Imobiliários Ltda % 40,187 6,795 4,368 1,176 41,438 SCP Direcional/Eólica Retiro dos Artistas 50.00% Direcional Xapuri Empreendimentos Imobiliários Ltda % 17 23, ,689 15,509 Lagoa Empreendimentos Imobiliários Ltda % 60, ,535 37,775 17,964 Direcional Tarauaca Empreendimentos Imobiliários Ltda % 30,724 17,212 11, ,274 Igaci Empreendimentos Imobiliários Ltda % 8 8, ,095 Direcional Cajueiros Empreendimentos Imobiliários Ltda % 48, , ,449 Riachos Empreendimentos Imobiliários Ltda % , ,242 Direcional Alegre Empreendimentos Imobiliários Ltda % 84 6, ,792 SCP Boa Casa % (22) Direcional Carneiros Empreendimentos Imobiliários Ltda % 1 7, , Direcional Água Branca Empreendimentos Imobiliários Ltda % 7 32, ,100 6,493 Direcional Coruripe Empreendimentos Imobiliários Ltda % 21, ,789 15,677 1,472 SCP Alterosa Ribeirão das Neves 62.75% 1, of 80

50 Balance sheet - 12/31/2015 Assets Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity Leopoldina Empreendimentos Imobiliários Ltda % - 9,800-9, SCP Bairro Carioca 99.90% 1, ,209 Sena Madureira Empreendimentos Imobiliários Ltda % 8 28,107-15,495 12,620 Direcional Trincheiras Empreendimentos Imobiliários Ltda % 16,672 1,891 1, ,100 Agua das Flores Empreendimentos Imobiliários Ltda % 85, ,982 49,050 29,403 Direcional Camaragibe Empreendimentos Imobiliários Ltda % Jequia Empreendimentos Imobiliários Ltda % 123,029 49,210 23, , Palmeira Empreendimentos Imobiliários Ltda % 20,010 3,849 10,278 12,492 1,089 SCP Aterrado do Leme 75.00% 3, ,455 SCP Macapá 99.90% 5,492 1,665 2,215 3,284 1,658 Ouro Branco Empreendimentos Imobiliários Ltda % 47, ,540 3,710 39,379 SCP Direcional/ASCC/DiedroEliza Miranda 40.00% 13,144 10, ,143 SCP Riacho Fundo 70.00% 1, , (1,292) Japaratinga Empreendimentos Imobiliários Ltda % Altos Pilares Empreendimentos Imobiliários Ltda % 4 27, ,771 1,265 SCP Porto Velho 99.90% 12, ,455 1,938 6,867 SCP Orgulho Tropical 99.90% 11, , ,156 SCP Orgulho do Ceará 99.90% 7, , ,464 Jundiá Empreendimentos Imobiliários Ltda % (341) SCP Jacundá 88.00% 13,880 1, ,637 Colinas de Santana Empreendimentos Imobiliários Ltda % 7,303 1, ,584 Direcional Jordão Empreendimentos Imobiliários Ltda % 37,315 19,056 20, ,318 Direcional SPL Ponciano Empreendimentos Imobiliarios Ltda % 5, , (371) 46 of 80

51 Balance sheet - 12/31/2015 Assets Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity Rubelita Empreendimentos Imobiliarios Ltda % Direcional Silvestre Ltda % 4, ,076 SCP Direcional/ACR Ouro Preto 97.19% Direcional Brasileia Empreendimentos Imobiliarios Ltda % 2, ,317 Direcional São Primiano Empreendimentos Imobiliarios Ltda % Santa Margarida Empreendimentos Imobiliarios Ltda % 2 13, ,550 Direcional Belo Monte Empreendimentos Imobiliários Ltda % 7 1, Direcional Taguatinga Engenharia Ltda % 57,276 53,183 6,441 6,779 97,239 SCP Parque Paranoa 99.90% 26, ,884 1,421 16,434 SCP Parque Carioca 99.90% , (270) Colina Empreendimentos Imobiliarios Ltda % , ,078 2,361 SCP Parque dos Resedás 50.00% 2, ,568 SCP Bosque Azul 50.10% 11, , ,294 SCP Jardim Carandá 70.00% 18, , ,249 SCP Buritizal 99.90% 3, ,057 SCP Orgulho de Minas II 99.90% (319) Canário Engenharia Ltda % 2, , ,591 56,842 SCP Serra de Minas 99.90% 3, ,563 SCP Viver Melhor Marituba 99.90% 22, , ,121 Murici Empreendimentos Imobiliários Ltda % 34, , ,580 SCP Viver Melhor Porto Velho 99.90% 16, , ,627 SCP Colonia Carioca 99.90% 5, , , of 80

52 Balance sheet - 12/31/2015 Assets Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity Limoeiro Empreendimentos Imobiliários Ltda % 7, ,542-3,889 Direcional Poranga Empreendimentos Imobiliários Ltda % 25, , ,608 Grande Vereda Empreendimentos Imobiliários Ltda % 4, , (1,323) Altana Empreendimentos Imobiliarios Ltda % Direcional Nordestina Empreendimentos Imobiliários Ltda % - 3, , Muqui Empreendimentos Imobiliários Ltda % 13, ,355 3,883 Mirante Empreendimentos Imobiliários Ltda % 15,033 9,866 2,214 21,048 1,637 SCP Viver Melhor Sorocaba 70.00% 6, , ,192 Bela Cruz Empreendimentos Imobiliários Ltda % 9, ,025 Direcional Satuba Empreendimentos Imobiliários Ltda % 55, , ,867 Rio Verde Empreendimentos Imobiliários Ltda % 2 24, ,769 1,741 Direcional Viçosa Empreendimentos Imobiliários Ltda % 8 9, ,772 Alto Buritis Participações Societárias Ltda % ,076 1, ,676 16,274 Direcional Campinas Engenharia Ltda % 8,647 1, ,429 7,716 Guarinos Empreendimentos Imobiliários Ltda % 15,046 11,099 5,205 10,926 10,014 Rio Real Empreendimentos Imobiliários Ltda % 9 74, ,850 8,577 Pedra Branca Empreendimentos Imobiliários Ltda % ,855 1,740 13,200 7,035 Direcional Barreirinha Empreedimentos Imobiliários Ltda % 44, , ,743 Borba Empreendimentos Imobiliários Ltda % , ,631 1,996 SCP Jardim Açucena 99.90% 16, , ,338 SCP Cidade Jardim 99.90% 45, , ,554 Alcobaca Empreendimentos Imobiliários Ltda % , ,755 17,732 Pumila Empreendimentos S.A % 9, , (3,019) Asistasia Empreendimentos S.A % 9,702-5,521-4, of 80

53 Balance sheet - 12/31/2015 Assets Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity Nowell Participações Ltda % 1,275 12, ,446 Bairro Novo Empreendimentos imobiliários Ltda % 9, ,500 2,754 Petiolare empreendimentos S.A % - 1, ,216 Ipanema Empreendimentos Imobiliarios SPE Ltda % - 13,010-12, SCP Vera Cruz 99.90% 18, , ,027 SCP Irmãos Maristas 99.90% 3, ,021 Canavieras Empreendimento Imobiliarios SPE Ltda % Itaguai Empreendimentos Imobiliarios SPE Ltda % 142 1, ,425 Napoli Empreendimentos Imobiliarios Ltda % 23 23, ,407 Valenca Empreendimentos Imobiliarios Ltda % Itapema Empreendimentos Imobiliários SPE Ltda % Paratinga Empreendimentos Imobiliários Ltda % Bergamo Empreendimentos Imobiliarios Ltda % - 5,937-5, Marselha Empreendimentos Imobiliarios Ltda % - 8,513-8,513 - Vinhedo Empreendimentos Imobiliarios Ltda % 30, , Residencial Florence Park SPE Ltda % 15, ,574 5,643 Castanheiras Empreendimentos Imobiliarios Ltda % 6, ,060 1,565 2,191 Anapu Empreendimentos Imobiliarios Ltda % 5, ,432 Conde Empreendimentos Imobiliarios Ltda % 3 3, , of 80

54 Balance sheet - 12/31/2015 Assets Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity Juazeiro Empreendimentos Imobiliarios Ltda % 12,174-1,581 10, Genebra Empreendimentos Imobiliarios Ltda % 7, ,075 5,323 1,579 Florença Empreendimentos Imobiliarios Ltda % Almeria Empreendimentos Imobiliarios Ltda % 1, ,703 Direcional Construtora Valparaíso Ltda % 2,243 16,309 2,369 16, SCP Direcional/MRV Serra da Canastra 50.00% Jonasa Empreendimentos Imobiliários Ltda % 30,684 2,704 2,118 3,404 27,866 SCP Direcional/Edifica Edifico Chopin 79.00% Direcional Diamante Empreendimentos Imobiliarios Ltda % 69,226 3,977 12,281 11,036 49,886 Ametista Empreendimentos Imobiliarios Ltda % 55,611 4,508 16,390 23,913 19,816 Direcional Opala Empreendimentos Imobiliarios Ltda % 1,912 3,356 1, ,413 Direcional Esmeralda Empreendimentos Imobiliarios Ltda % 24, , ,652 Direcional Safira Empreendimentos Imobiliarios Ltda % 5,950 18, ,503 5,677 Direcional Rubi Empreendimentos Imobiliarios Ltda % 40,235 16,080 5,941 2,147 48,227 Direcional Âmbar Empreendimentos Imobiliarios Ltda % 5,500 11,003 2,532 2,876 11,095 SCP Direcional/Aterpa Santa Inês 50.00% SCP Direcional/ACR Gran Riserva 98.10% SCP Direcional/ACR Paradiso 98.10% 2, SCP Direcional/ACR Maura Valadares 98.10% SCP Direcional/ACR Lago 98.10% 6,756 1, ,618 4,396 Direcional TSC Rio Madeira Empreendimentos Imobiliarios Ltda % , (1,847) Direcional TSC Jamari Empreendimentos Imobiliarios Ltda % 1, , of 80

55 Balance sheet - 12/31/2015 Assets Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity Direcional TSC Jatuarana Empreendimentos Imobiliarios Ltda % 3, , (2,678) SCP DirecionalACR Le Parc de France 98.10% SCP Direcional/Aterpa Cidade Nova 50.00% SCP Direcional/ACR Santa Mônica 98.10% (187) Ônix Empreendimentos Imobiliários Ltda % 62, ,493 4,734 52,691 Direcional Sodalita Empreendimentos Imobiliarios Ltda % 2, ,956 Capisicum Empreendimentos Imobiliários Ltda % 2, ,862 Malaquita Empreendimentos Imobiliarios Ltda % 8 8, ,089 Una Empreendimentos Imobiliarios Ltda % 6,393 2, ,433 Alexandrita Empreendimentos Imobiliarios Ltda % 1,233 3,208 2, ,796 Bujari Empreendimentos Imobiliarios Ltda % 1, Coral Empreendimentos Imobiliarios Ltda % 18 17, ,445 Zircone Empreendimentos Imobiliarios Ltda % 201,259 41,319 64,591 97,474 80,513 SCP Direcional/Lasa Águas Claras II 50.00% Jaspe Empreendimentos Imobiliarios Ltda % Direcional Corretora de Imóveis S.A % 1, Azurita Empreendimentos Imobiliarios Ltda % 49,857 20,474 39,998 2,133 28,200 Abaré Empreendimentos Imobiliários Ltda % 22,215 4,753 2, ,843 Água Marinha Empreendimentos Imobiliários Ltda % 28, ,000 20,446 Direcional Turquesa Empreendimentos Imobiliários Ltda % 67,326 2,622 32,876 1,101 35,971 Flourita Empreendimentos Imobiliários Ltda % 12, , ,551 Azeviche Empreendimentos Imobiliários Ltda % 27,168 5,588 4,442 18,482 9,832 SCP Direcional/Capla Brasília % Arinos Empreendimentos Imobiliários Ltda % 20 9, , of 80

56 Balance sheet - 12/31/2015 Assets Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity Direcional Assis Brasil Empreendimentos Imobiliários Ltda % 292 6, , Citrino Empreendimentos Imobiliários Ltda % (6) Turmalina Empreendimentos Imobiliários Ltda % 27, , ,534 SCP Direcional Petrópolis 99.90% SCP Direcional Ozias 99.90% Seabra Empre. Ltda. A/C Consórcio Total Ville Porto Velho 99.90% 21, ,228 19,922 SCP Direcional/Lucas/Tulio Club House % 1,570 2, ,530 Direcional Patrimar Maragogi Empreendimentos Imobiliarios Ltda % 6, ,478 SCP Cidadão XI 99.90% SCP Pro Moradia II 99.90% 13, ,702 Capela Empreendimentos Imobiliários Ltda % 2, ,096 Direcional Porto Acre Empreendimentos Imobiliarios Ltda % 29, , ,897 Direcional Feijo Empreendimentos Imobiliarios Ltda % 19 15, ,300 12,734 Capixaba Empreendimentos Imobiliarios Ltda % 5,647 8, ,984 SCP Direcional/SPL Campinas 50.00% (92) SCP Meu Orgulho 99.90% , (840) Geminiano Projeto 01 Empreendimentos Imobiliários Ltda % 64, ,132 23,174 30,161 Direcional Rio Branco Empreendimentos Imobiliários Ltda % 21, ,627 6,613 SPE Maura Gontijo 50.00% (274) Bom Sucesso Incorporação e Investimentos Imobiliários S.A % 13 27,644 3,037-24,620 Patrimar Cl. Manoel 31.00% (32) Aterpa Rio de Janeiro 45.00% 14, ,981 Ibicela Empreendimentos S.A 25.73% 1,440-2, (1,320) Talauma Empreendimentos S.A 25.73% 2,560-2, Andrade Valladares Residencial Ltda. SCP Floramar 50.00% 82,637 7,018 37,054 3,367 49, of 80

57 9 Property and equipment Parent company (a) Composition of balances Description Depreciation rates 9/30/2016 Property and Cost Depreciation Net equipment, net at 12/31/2015 Machinery and equipment 10% 11,843 (6,589) 5,254 6,141 Aluminum forms 20% 85,693 (51,904) 33,789 47,684 Furniture and fittings 10% 3,223 (918) 2,305 2,439 Vehicles 20% 828 (819) 9 15 IT equipment 20% 3,234 (2,328) 906 1,099 Other assets (168) Leasehold improvements 8.33% 8,302 (969) 7,333 7,553 Total 113,306 (63,695) 49,611 64,948 (b) Changes in 2016 Cost Cost at 12/31/2015 Additions Write-offs/ transfers Cost at 9/30/2016 Machinery and equipment 11, ,843 Aluminum forms 88,486 - (2,793) 85,693 Furniture and fittings 3, ,223 Vehicles IT equipment 3, ,234 Other assets Leasehold improvements 7, , , (2,793) 113,306 Depreciation (-) Depreciation at 12/31/2015 Depreciation for the period Write-offs (-) Depreciation at 9/30/2016 Machinery and equipment (5,700) (889) - (6,589) Aluminum forms (40,802) (12,448) 1,346 (51,904) Furniture and fittings (678) (240) - (918) Vehicles (813) (6) - (819) IT equipment (2,062) (266) - (2,328) Other assets (160) (8) - (168) Leasehold improvements (446) (523) - (969) (50,661) (14,380) 1,346 (63,695) Property and equipment, net 64,948 (13,890) (1,447) 49, of 80

58 (c) Changes in 2015 Cost Cost at 12/31/2014 Additions Write-offs/ transfers Cost at 12/31/2015 Machinery and equipment 11, ,841 Aluminum forms 87,195 1,291-88,486 Furniture and fittings 1,008 2,109-3,117 Vehicles IT equipment 2, ,161 Other assets Leasehold improvements , ,577 12, ,609 Depreciation (-) Depreciation at 12/31/2014 Depreciation for the period Write-offs (-) Depreciation at 12/31/2015 Machinery and equipment (4,505) (1,195) - (5,700) Aluminum forms (11,855) (28,947) - (40,802) Furniture and fittings (460) (218) - (678) Vehicles (799) (14) - (813) IT equipment (1,696) (366) - (2,062) Other assets (142) (18) - (160) Leasehold improvements - (446) - (446) (19,457) (31,204) - (50,661) Property and equipment, net 84,120 (19,172) - 64,948 Consolidated (d) Composition of balances Description Depreciation rates 9/30/2016 Property and Cost Depreciation Net equipment, net at 12/31/2015 Machinery and equipment 10% 24,497 (12,023) 12,474 12,918 Aluminum forms 20% 85,694 (51,904) 33,790 47,684 Furniture and fittings 10% 7,150 (2,602) 4,548 4,855 Vehicles 20% 2,674 (2,487) IT equipment 20% 6,665 (4,744) 1,921 2,142 Sales stands (a) 54,145 (41,118) 13,027 11,445 Other assets - 1,247 (996) Leasehold improvements 8.33% 8,301 (969) 7,332 7,553 Total 190,373 (116,843) 73,530 87, of 80

59 (e) Changes in 2016 Cost Cost at 12/31/2015 Additions Write-offs/ transfers Cost at 9/30/2016 Machinery and equipment 23,245 1,320 (68) 24,497 Aluminum forms 88,487 - (2,793) 85,694 Furniture and fittings 6, (7) 7,150 Vehicles 2, ,674 IT equipment 6, (10) 6,665 Sales stands 49,873 4,272-54,145 Other assets 1, (4) 1,247 Leasehold improvements 7, , ,695 6,560 (2,882) 190,373 Depreciation (-) Depreciation at 12/31/2015 Depreciation for the period Write-offs (-) Depreciation at 9/30/2016 Machinery and equipment (10,327) (1,719) 23 (12,023) Aluminum forms (40,803) (12,448) 1,347 (51,904) Furniture and fittings (2,091) (513) 2 (2,602) Vehicles (2,429) (58) - (2,487) IT equipment (4,189) (562) 7 (4,744) Sales stands (38,428) (2,690) - (41,118) Other assets (896) (103) 3 (996) Leasehold improvements (446) (523) - (969) (99,609) (18,616) 1,382 (116,843) Property and equipment, net 87,086 (12,056) (1,500) 73, of 80

60 (f) Changes in 2015 Cost Cost at 12/31/2014 Additions Write-offs/ transfers Cost at 12/31/2015 Machinery and equipment 22,226 1,019-23,245 Aluminum forms 87,195 1,292-88,487 Furniture and fittings 4,680 2,266-6,946 Vehicles 2,691 (17) (25) 2,649 IT equipment 5, ,331 Sales stands 44,502 5,371-49,873 Other assets 1, ,165 Leasehold improvements - 7,999 7, ,081 18,639 (25) 186,695 Depreciation (-) Depreciation at 12/31/2014 Depreciation for the period Write-offs (-) Depreciation at 12/31/2015 Machinery and equipment (8,105) (2,222) - (10,327) Aluminum forms (11,855) (28,948) - (40,803) Furniture and fittings (1,515) (576) - (2,091) Vehicles (2,280) (149) - (2,429) IT equipment (3,347) (842) - (4,189) Sales stands (30,293) (8,135) - (38,428) Other assets (718) (178) - (896) Leasehold improvements - (446) (446) (58,113) (41,496) - (99,609) Property and equipment, net 109,968 (22,857) (25) 87,086 The Company and its subsidiaries have entered into six finance lease agreements and four agreements with the Government Agency for Machinery and Equipment Financing (FINAME), relating to machinery, equipment and vehicles. The book value of property and equipment subject to finance lease commitments at September 30, 2016 amounted to R$ 85,694 (R$ 99,496 at December 31, 2015). During the period, no items, which have been given in guarantee of the financing, were added to property and equipment. 56 of 80

61 10 Borrowings Parent company Consolidated Parent company Consolidated 9/30/ /31/2015 9/30/ /31/2015 Financing for construction Direcional Taguatinga Engenharia Ltda ,056 - Direcional Diamante Empreendimentos Imobiliários Ltda ,008 Ônix Empreendimentos Imobiliários Ltda ,230 Direcional JHSF Zircone Empreendimentos imobiliários Ltda , ,198 Direcional Porto Acre Empreendimentos Imobiliários Ltda ,270 Direcional Tarauaca Empreendimentos Imobiliários Ltda ,085 10,459 Direcional Ametista Empreendimentos Imobiliarios Ltda ,190 27,616 Direcional SPL Ponciano Empreendimentos Imobiliários Ltda ,450 Direcional Palmeira Empreendimentos Imobiliarios Ltda ,899 21,090 Direcional Turquesa Empreendimentos Imobiliarios S.A ,790 30,389 Direcional Cajueiro Empreendimentos Imobiliários Ltda ,280 18,437 Jequiá Empreendimentos Imobiliários Ltda ,436 78,496 Direcional Azeviche Empreendimentos Imobiliários Ltda ,931 17,721 Geminiano Projeto 01 Empreendimentos Imobiliários Ltda ,915 24,215 Lagoa Empreendimentos Imobiliários Ltda ,045 36,973 Direcional Coruripe Empreendimentos Imobiliários Ltda ,113 15,050 Direcional Jordão Empreendimentos Imobiliários Ltda ,469 18,674 Ouro Branco Empreendimentos Imobiliários Ltda ,174 3,665 Agua das Flores Empreendimentos Imob.Ltda ,604 47,687 Direcional Turmalina Empreendimentos Imobiliários Ltda ,787 18,696 Azurita Empreendimentos Imobiliários Ltda ,851 35,802 Guarinos Empreendimentos Imobiliarios Ltda ,325 7,556 Mirante Empreendimentos Imobiliários Ltda ,380 12,117 Residencial Florence Park SPE Ltda , Arapiraca Empreendimentos Imobiliários Ltda ,362 - Muqui Empreendimentos Imobiliários SPE Ltda ,336 - Nova Campinas Empreendimentos Imobiliários Ltda ,820 - Genebra Empreendimentos Imobiliarios Ltda ,689 - Almeria Empreendimentos Imobiliarios Ltda , , ,435 FINAME and finance leasing for equipment Direcional Engenharia S.A. 16,313 26,345 16,313 26,345 16,313 26,345 16,313 26,345 Certificate of Real Estate Receivables (CRI) Direcional Engenharia S.A. 63,378 86,899 63,378 86,899 63,378 86,899 63,378 86,899 Debentures Direcional Engenharia S.A. 55, ,771 55, ,771 55, ,771 55, ,771 Bank Credit Note: Direcional Engenharia S.A. 146, , , ,972 - Total 282, , , ,451 Current portion 119, , , ,584 Non-current portion 162, , , , of 80

62 The Company's borrowings fall into six major categories, namely: Financing for construction: This type of loan is to fund projects during the construction period. The applicable interest rates range from 8.3% to 13.5% p.a., depending on the transaction, plus the Reference Rate (TR). The transactions are secured by mortgages on the respective real estate of the projects. FINAME and Leasing: The purpose of this type of loan is to finance investments in machinery and equipment. The applicable interest rates are: (i) for FINAME, depending on the transaction, fixed interest from 2.5% to 8.7% p.a. or variable interest indexed to the Long-term Interest Rate (TJLP) or the Interest Rate established by Provisional Executive Order 462 (TJ 462), ranging from 2.3% to 6.0% p.a. and (ii) for Leasing, depending on the transaction, variable interest indexed to the CDI rate plus 1.5% to 1.98% p.a. The transactions are guaranteed by the machinery and equipment items purchased with these loans. Working capital: The purpose of this type of loan is to finance the Company's working capital requirements. The interest rate applicable to this type of loan is 108% of the monthly CDI. Certificate of Real Estate Receivables (CRI): 341st Series: this consists of a registered credit instrument, exclusively issued by securitization companies, backed by real estate credits, and which represents a cash payment commitment. 100 CRIs with a Nominal Unit Value of R$ 1,000,000.00, each were issued on April 1, The total issue amount was R$ 100,000, and the total CRI term covers the period from April 1, 2014 to April 1, 2019 ("Final Maturity Date"). The real estate receivables are supported by bank credit certificate No issued by Direcional Engenharia S.A. ("CCB"), on March 21, 2014, which is fully represented by a real estate credit bill ("CCI") issued by Itaú Unibanco S.A. The real estate receivables were assigned to the issuer (Brazilian Securities Companhia de Securitização) through the transfer of the CCI by Itaú Unibanco S.A. to the issuer. The balance of the Nominal Unit Value of CRI will not be subject to monetary adjustment. The remuneration of the CRI, calculated based on the CRI Nominal Unit Value on the CRI issue date, comprises interest corresponding to the accumulated Interbank Deposit (DI) rate, considering 252 business days per year, calculated on a pro rata temporis cumulative and exponential basis per working day elapsed. This transaction is guaranteed by the accounts linked to the operation and the pledges of the credit rights of the companies: Jonasa Empreendimentos Imobiliários Ltda. and Flourita Empreendimentos Imobiliários Ltda. Debentures (DIRR11) - 1st issue: consists of a medium and long-term debt security, which grants to its holder the right to credit against the issuing company. 20,000 simple, non-convertible, unsecured debentures, with a nominal value of R$ 10, each, were issued on April 25, The issue totaled R$ 200,000,000.00, which is being repaid monthly, in 25 equal installments, each corresponding to 4.0% of the Unit Nominal Value, with the first installment due on April 25, 2015 and the others on the same day of the subsequent months up to the maturity date on April 25, The interest is paid monthly from the date of issue, with the first payment on May 25, 2013 and the others on the same day of the subsequent months, with the last payment on the maturity date. 58 of 80

63 As from the date of issuance, the debentures will be entitled to interest corresponding to 100% of the accumulated variations of the daily average rate of the Interbank Deposits (DI) of the one day "over extra group", expressed as an annual percentage, calculated and disclosed by the Center for the Financial Clearance and Custody of Private Securities (CETIP), plus a surcharge or spread of 1.00% p.a., based on a year with 252 business days. The debentures were registered for trading in the secondary market through CETIP21, managed and operated by CETIP. Bank Credit Note: The purpose of this type of loan is to finance the Company's working capital requirements. The interest rate applicable to this type of loan is 114% of the monthly CDI rate. The non-current portion of the parent company loans matures as follows: Period 9/30/2016 October 2017 to September ,875 October 2018 to September , ,685 The non-current portion of the consolidated loans matures as follows: Period 9/30/2016 October 2017 to September ,132 October 2018 to September ,215 October 2019 to September ,630 October 2020 onwards , Labor liabilities Parent company Consolidated Description 9/30/ /31/2015 9/30/ /31/2015 Salaries and drawings payable 3,666 1,828 9,014 7,981 Payroll charges ,209 13,064 Labor provisions 7,511 5,773 34,006 21,716 Other (212) 52 (945) 1,195 11,096 8,463 50,284 43, of 80

64 12 Tax liabilities Parent company Consolidated Current taxes 9/30/ /31/2015 9/30/ /31/2015 Corporate Income Tax (IRPJ) - - 1,151 1,424 Social Contribution on Net Income (CSLL) Social Integration Program (PIS) Social Contribution on Revenues (COFINS) Special taxation regime - - 2,526 3,586 Other ,585 5,515 Deferred taxes 639 1,089 8,091 11,457 Corporate Income Tax (IRPJ) ,213 13,110 Social Contribution on Net Income (CSLL) - - 6,402 6,870 Social Integration Program (PIS) - - 3,592 3,871 Social Contribution on Revenues (COFINS) ,672 17,977 Adjustment to present value - - (601) (902) Other ,278 41, ,089 46,369 52,882 Current 639 1,089 39,654 45,756 Non-current - - 6,715 7, of 80

65 13 Real estate commitments payable Accounts payable arising from the acquisition of land for real estate development purposes are as follows: Parent company 9/30/ /31/2015 Land of the venture Tarumã Ari in Manaus - State of Amazônia 9,916 9,916 Land of venture Cachamorra Rossi 9,300 - Land of venture Av. das Flores 5,000 - Land of venture Guarulhos 5,200 - Land of the venture Estrada do Bom Retiro 5,616 - Land of the venture Jardim Novo Horizonte in Sorocaba - State of São Paulo 4,841 4,841 Land of venture Nova Caucaia 2,200 - Land of the Integrated Project of Alexandre de Gusmão in Ceilândia - Federal District - 38,778 Land of the venture Renato Khel in Limeira - State of São Paulo - 4,704 Land of the venture Santíssimo in Rio de Janeiro - State of Rio de Janeiro SCPs, SPEs and ventures 42,073 59,019 Jequia Empreendimentos Imobiliários Ltda. 76,313 79,285 Rio Real Empreendimentos Imobiliários Ltda. 65,850 65,850 Alto Santo Empreendimentos Imobiliarios Ltda. 61,110 - Munique Empreendimentos Imobiliarios Ltda. 38,776 - Riacho Branco Empreendimentos Imobiliários Ltda. 21,714 14,627 Direcional Zircone Empreendimentos Imobiliarios Ltda. 18,915 22,662 Direcional Safira Empreendimentos Imobiliarios Ltda. 17,966 17,928 Boa Nova Empreendimentos Imobiliarios Ltda. 17,010 - Maranguape Empreendimentos Imobiliários Ltda. 16,020 - Pedra Branca Empreendimentos Imobiliários Ltda. 14,920 14,920 Catalão Empreendimentos Imobiliários Ltda. 11,694 - Juazeiro Empreendimentos imobiliários Ltda. 11,338 11,681 Carneiros Empreendimentos Imobiliários Ltda. 9,409 - Muqui Empreendimentos Imobiliários SPE Ltda. 9,284 9,355 Mirante Empreendimentos Imobiliários SPE Ltda. 8,202 9,355 Residencial Florence Park SPE Ltda. 8,086 8,852 Campos Verdes Empreendimentos Imobiliarios Ltda. 7,780 - Novo Oriente Empreendimentos Imobiliarios Ltda. 6,955 - Ametista Empreendimentos Imobiliarios Ltda. 6,431 8,650 Água Marinha Empreendimentos Imobiliários Ltda. - 8,000 Rio Verde Empreendimentos Imobiliários Ltda. 6,000 6,000 Olímpia Empreendimentos Imobiliarios Ltda. 5,833 - Genebra empreendimentos Imobiliarios Ltda. 5,513 5,850 Oslo Empreendimentos Imobiliários Ltda. 4,274 - Castanheiras empreendimentos imobiliários Ltda. 4,584 4,583 Other 19,342 13, , , , ,396 Parent company Consolidated Description 9/30/ /31/2015 9/30/ /31/2015 Current ,232 36,266 Non-current 42,073 59, , , of 80 42,073 59, , ,396

66 14 Advances from customers The advances correspond to (i) a commitment to deliver completed real estate units, arising from acquisitions of land through barter arrangements which consist of the exchange of land for units to be developed; (ii) advances from customers deriving from sales of real estate units: Advances from customers - physical barter of land (i) Parent company 9/30/ /31/2015 Land of the venture Santíssimo in Rio de Janeiro - State of Rio de Janeiro - 7,528 Land of the venture Nova Caucaia 2,196 - Land of the venture Jardim Novo Horizonte in Sorocaba - State of São Paulo ,416 7,748 Subsidiaries 9/30/ /31/2015 Alcobaça Construções e Empreendimentos Imobiliários SPE Ltda. 158, ,756 Alto Buritis Participações Societárias Ltda. 102, ,677 Canário Engenharia Ltda. 68,248 71,591 Altos Pilares Empreendimentos Imobiliários Ltda. 25,771 25,771 Vinhedo Empreendimentos Imobiliarios Ltda. 25,696 25,696 Rio Verde Empreendimentos Imobiliários Ltda. 16,770 16,770 Direcional Construtora Valparaíso Ltda. 15,476 15,476 Portal das Rosas Empreendimentos Imobiliários Ltda. 10,400 10,400 Arinos Empreendimentos Imobiliários Ltda. 9,385 9,385 Colina Empreendimentos Imobiliarios SPE Ltda. 9,207 9,207 Marselha Empreendimentos Imobiliarios Ltda. 8,463 8,461 Xapuri Empreendimentos Imobiliários Ltda. 7,689 7,689 Direcional Assis Brasil Empreendimentos Imobiliários Ltda. 6,560 6,560 Itapetininga Empreendimentos Imobiliarios Ltda. 6,503 - Bella Carioca Empreendimentos Imobiliários SPE LTDA. 6,500 6,500 Sena Madureira Empreendimentos Imobiliários Ltda. - 15,495 Ipanema Empreendimentos Imobiliarios SPE Ltda. - 12,961 Borba Empreendimentos Imobiliários SPE Ltda. - 11,631 Leopoldina Empreendimentos Imobiliários Ltda. - 9,619 Carneiros Empreendimentos Imobiliários Ltda. - 6,923 Guarinos Empreendimentos Imobiliários Ltda. 2,098 6,250 Other 11,639 24, , ,916 Advances from customers - receipts (ii) 9/30/ /31/2015 Limoeiro Empreendimentos Imobiliários Ltda. 5,511 - Direcional Brasileia Empreendimentos Imobiliarios Ltda SCP Vera Cruz - 5,478 5,511 5,870 Total 499, ,534 Current 10,563 28,742 Non-current 489, , of 80

67 15 Other payables Parent company Consolidated Description 9/30/ /31/2015 9/30/ /31/2015 Payables to customers 11,509 8,308 13,109 8,966 Payables to partners (a) ,920 26,920 Payables for equity investments acquired (b) 30,362 5,273 35,515 7,402 Other 14, ,044 8,394 Total 55,877 14,202 89,588 51,682 Current 55,877 14,202 63,588 25,682 Non-current ,000 26,000 (a) On April 20, 2011, the Company entered into a commercial agreement with an investment partner in relation to the development of four land units located in the Federal District, in exchange for R$ 44,300 received in cash, bearing no remuneration. In December 2012, the project for one of the land units involved in the commercial agreement was approved, and the amount of R$ 10,380 was capitalized in SPE Direcional Turquesa Empreendimentos Imobiliários, responsible for the real estate development, construction and sale of the venture. In April 2014, the amount of R$ 7,000 was capitalized in SPE Ouro Branco Empreendimentos Imobiliários Ltda., which was responsible for the construction and sale of the second venture. (b) In September 2016, the Company acquired 50% of the quotas of SPE Jardim Amaralina from Trisul S.A. for R$ 21,000, This SPE will be responsible for the construction and development of the low-income project Jardim Amaralina, in the City of São Paulo. 16 Provisions 16.1 Provision for warranties The Company records a provision for expenses related to warranties during the construction period, only for units already sold, so that any costs incurred for maintenance after the delivery of the real estate units will be deducted from the provision. The recording of the provisions for warranties is based on evaluations of historical cash outflows on maintenance expenditure, which represent on average 2.31% for development projects in September 2016 (1.93% in December 2015 and for service works, 0.53% in September 2016 (0.83% in December 2015)). The balance of the provision for warranties amounted to R$ 540 (R$ 658 at December 31, 2015) for the Parent company and R$ 31,862 (R$ 29,190 at December 31, 2015) as regards the consolidated. The provisions are fully reversed when the contractual or legal clauses that generate the obligation and commitment between the builder and buyer lapse Provision for tax, labor and civil risks The Company and its subsidiaries are exposed to certain contingencies and risks relating to civil, tax and labor claims arising in the normal course of business. Based on the analysis of the risks identified and the opinion of its legal advisors, the Company recorded a provision at an amount deemed sufficient to cover any losses in those cases in which the likelihood of loss is considered probable. 63 of 80

68 The provisions and December 31, 2015 were as follows: Parent company Tax Labor Civil Total At 12/31/ Provisions ,283 2,588 Reversals - (186) (211) (397) At 12/31/ ,323 2,717 Provisions Reversals - (268) (2,298) (2,566) At 9/30/ Consolidated Tax Labor Civil Total At 12/31/ ,735 17,385 27,251 Provisions 2,794 9,200 15,561 27,555 Reversals (131) (8,268) (10,812) (19,211) At 12/31/2015 2,794 10,667 22,134 35,595 Provisions 20 9,728 13,280 23,028 Reversals (2,794) (7,265) (13,137) (23,196) At 9/30/ ,130 22,277 35,427 In addition, the Company is party to other legal proceedings of a tax, civil and labor nature arising in the normal course of business, for which the likelihood of loss, in the opinion of the Company's management and its legal advisors, is considered to be possible, amounting approximately to R$ 64,984 for labor, R$ 14,318 for tax and R$ 175,164 for civil proceedings as. Since the likelihood of loss is not probable, no provision was recorded to cover any losses arising from an unfavorable outcome. 17 Equity 17.1 Share capital As approved at the Extraordinary General Meeting of Stockholders held on May 7, 2015, the Company's share capital was increased to R$ 752,982 with reserves exceeding the share capital amount, but without the issue of new shares, in accordance with Article 199 of Law 6,404/76 (Corporate Law), amounting to R$ 50,000. The Company's authorized capital on the date of issue of the quarterly information was R$ 1,200,000. Due to the cancellation of 1,900,000 common treasury shares, as approved at the Board of Directors' meeting held on March 2, 2015, the Company's share capital is represented by 153,398,749 common shares, of which 146,304,437 are outstanding and 7,094,312 are held in treasury. 64 of 80

69 17.2 Treasury shares The Board of Directors' meeting held on March 2, 2015 approved the fourth buyback program relating to the shares issued by the Company, with the objective of holding these shares in treasury for subsequent disposal or cancellation, without capital reduction, in order to maximize stockholder value. Regarding the fourth program, 7,034,205 shares were acquired, with the disbursement of R$ 40,502, at an average price of R$ 5.76 per share. The former three buyback programs lasted 60 days,180 days and 365 days, respectively, from August 12, 2011 to October 11, 2011, from October 24, 2011 to April 20, 2012, and from September 12, 2013 to September 13, The fourth buyback program will be effective for 365 days, from March 2, During the effective period of the first two programs, 1,660,200 shares were repurchased, representing a disbursement of R$ 15,846 at the average price of R$ 9.54 per share. The third program for the buyback of the authorized limit of 2,000,000 shares was concluded on August 15, 2013, with the disbursement of R$ 24,673 at an average price of R$ per share. Additionally, at the Board of Directors' meeting held on February 4, 2015, the cancellation of 1,900,000 common shares held in treasury was approved. Finally, during the first nine months of 2016, 37,059 treasury shares were granted, of which 35,600 shares relate to the exercise of options of shares of the Stock Options plan and 1,459 shares were part of the Matching Shares Program (35,600 shares in 2015, 441,635 in 2014, 851,770 in 2013 and 334,029 in 2012, relating to programs I and II of the Stock Option plan). The number of treasury shares, therefore, totaled 7,094, Capital reserves Capital reserve through the granting of stock options As discussed in Note 22, the Company recognizes in this account the services received in exchange for stock options granted. The reserve is transferred to retained earnings when the options are exercised Revenue reserves Legal reserve This reserve was introduced by Article 193 of Law 6,404/76 in order to provide protection to creditors and is mandatorily constituted on the basis of 5% of the profit for the year, until its balance reaches 20% of the amount of capital or 30% together with the capital reserves. This reserve can only be used to absorb losses and to increase capital. The Company opted not to increase the legal reserve, as the sum of the legal and capital reserves already exceeds the limit of 30% of the share capital. 65 of 80

70 Profit retention reserve This reserve is recorded primarily for the purpose of maintaining the Company's investment capacity and the execution of projects in progress. In addition, the General Meeting of Stockholders will decide on the allocation of the excess of revenue reserves in relation to total share capital, in accordance with Article 199 of Brazilian Corporation Law (Law 11,368/2007) Distribution of dividends The holders of common shares are entitled to annual dividends of at least 25% of the profit, adjusted for changes in reserves, in accordance with Brazilian Corporation Law. Profit for the year 123,647 Legal reserve (5%) Profit to be distributed 123,647 Mandatory minimum dividend (25%) 30,912 Dividends paid in advance 30,912 Additional dividends paid in advance 9,088 Total dividends paid 40,000 Dividends per share 0.27 On July 21, 2015, the Board of Directors approved the prepayment of dividends amounting to R$ 40,000 as interim dividends, equivalent to R$ per share. As proposed by management and approved at the Annual and Extraordinary General Meeting of Stockholders held on April 29, 2016, these dividends were deducted from the mandatory minimum dividends declared based on the accumulated result for 2015, pursuant to paragraph 1 of article 37 of the Company's bylaws, which would correspond to R$ 30,912, thus no balance would remain to be distributed to the stockholders. Therefore, the amount distributed exceeded by R$ 9,088 the mandatory minimum dividends for of 80

71 17.5 Earnings per share The Company calculates earnings per share utilizing the weighted average number of total common shares outstanding in the period corresponding to the profit, pursuant to Technical Pronouncement CPC 41 (IAS 33). The detailed information on the calculation of earnings per share for the periods ended September 30, 2016 and September 30, 2015 is presented below: 9/30/2016 9/30/2015 Numerator: Profit for the period 52,949 92,823 Denominator: Weighted average number of shares 146,292, ,629,792 Basic earnings per share - R$ Diluted earnings per share 9/30/2016 9/30/2015 Numerator: Profit for the period 52,949 92,823 Denominator: Weighted average number of shares 146,292, ,629,792 Adjustment for stock options (a) 523, ,006 Weighted average number of shares (diluted) 146,816, ,739,798 Diluted earnings per share - R$ (a) Represented by the weighted average of "in-the-money" outstanding options, under the stock option plan detailed in Note Result from real estate development operations and construction contracts 18.1 Net operating revenue Parent company Consolidated Description 9/30/2016 9/30/2015 9/30/2016 9/30/2015 Gross sales revenue - 2, , ,421 Gross service revenue 6,633 5, , ,322 Total gross revenue 6,633 8,417 1,179,034 1,232,743 Adjustment to present value - - 3,312 (491) Taxes on sales (2,161) (1,027) (13,921) (14,931) Canceled sales - - (64,900) (45,757) Net operating revenue 4,472 7,390 1,103,525 1,171, of 80

72 Taxes on sales and services comprise PIS and COFINS, levied at 1.65% and 7.6%, respectively, on revenue earned under the non-cumulative taxation regime, 0.65% and 3% on revenue earned under the cumulative taxation regime, 0.37% and 1.71% on revenue earned under the special taxation regime applicable to construction companies and real estate developers, and 0.09% and 0.44% on revenue relating to the Minha Casa Minha Vida Housing Program (PMCMV) for units up to R$ 100. Revenue is shown net of value-added tax, returns, rebates and discounts and, in the consolidated financial statements, after eliminating sales within the Group. The Group recognizes revenue when the amount of revenue can be reliably measured, when it is probable that future economic benefits will result from the transaction and when specific criteria have been met for each of the Group's activities as described below. (a) Complete real estate units Revenue from credit sales of completed units is recognized at the time the most significant risks and rewards of ownership of the real estate units sold are transferred, regardless of the term of receipt of the contractual amount. Fixed rate interest and monetary variations are recognized on a pro rata temporis basis in the results on an accrual basis, under "Finance income", irrespective of their receipt. (b) Real estate units under construction For sales of units under construction, the Company has adopted the procedures and standards established by CPC 30, Revenue, in relation to the recognition of revenue from the sale of property with the continuous transfer of the most significant risks and rewards of ownership. The classification of the contracts for the sale of developments, for purposes of the application of this standard, was based on Guideline OCPC 04, which determines the application of Technical Interpretation ICPC 02 to Brazilian real estate development entities. Based on these CPC standards and taking into consideration the applicable accounting procedures established by Guideline OCPC 01 (R1), the following procedures are adopted for the recognition of revenue from sales of units under construction: The costs incurred on units sold, including the cost of land, are fully recognized in the statement of income. The percentage of the costs incurred on units sold, including land, in relation to the total estimated cost (POC) is calculated, and this percentage is applied to the fair value of the revenue from units sold (including the fair value of barters made for land), adjusted in accordance with the terms of the sales contracts, which establish the monetary restatement of the amounts receivable according to the National Civil Construction Index (INCC), thereby determining the amount of revenue to be recognized. The amounts of sales revenue calculated, including the monetary restatement of trade receivables, net of installments already received (including the fair value of barters made for land), are recorded as trade receivables or advances from customers, as applicable. 68 of 80

73 The fair value of revenue from units sold is calculated at present value based on the higher of the average rate for the Company's borrowings, less inflation effects, and the rate of the National Treasury Note series B (NTN-B), as from the date the contract is signed up to the date scheduled for the delivery of the unit. As from the real estate delivery date, receivables are subject to interest of 12% per year, plus monetary restatement based on the increase in the General Market Price Index (IGP-M). The interest rate for the remuneration of government bonds indexed to the Amplified Consumer Price Index (IPCA) is compatible with the nature, terms and risks of similar transactions under market conditions. Subsequently, as time elapses, interest is incorporated into the new fair value for the calculation of the revenue to be recognized, to which the POC is applied. Interest and financial charges on the financing of construction and land purchases are charged to the cost of the development and recognized in the statement of income according to the units sold, not having an impact on the determination of the percentage of cost incurred in relation to total cost (POC) Appropriated result relating to real estate sales 9/30/2016 9/30/2015 Revenue and costs of completed real estate units Net revenue from units sold ( - ) Cost of units sold Net revenue from units sold ( - ) Cost of units sold Direcional Engenharia S.A. (a) - - 2,607 (2,436) Other 4,472 (116) 4, ,472 (116) 7,390 (2,416) (a) In December 2014, the Company carried out the sale and leaseback of the property where it established its headquarters. These transactions were approved by the Company's Board of Directors and occurred at market value. Additionally, the Company evaluated the rental agreement and qualified it as an operating lease. 69 of 80

74 9/30/2016 9/30/2015 Revenue and costs of completed real estate units Net revenue from units sold ( - ) Cost of units sold Net revenue from units sold ( - ) Cost of units sold Construction services 35,447 (47,132) 11,788 (15,197) Azurita Empreendimentos Imobiliarios Ltda. 13,129 (13,017) (4,651) 2,229 Direcional Porto Acre Empreendimentos Imobiliarios Ltda. 7,885 (8,324) (208) (982) Direcional Turquesa Empreendimentos Imobiliários SPE S.A. 7,697 (6,552) - - Una Empreendimentos Imobiliarios Ltda. 6,210 (3,017) 1,405 (1,254) Trincheiras Empreendimentos Imobiliários Ltda. 5,265 (4,137) 3,001 (1,590) Direcional Taguatinga Engenharia Ltda. 4,689 (5,334) 6,169 (4,297) Agua das Flores Empreendimentos Imobiliários Ltda. 3,624 (6,160) - - Direcional Esmeralda Empreendimentos Imobiliarios Ltda. 3,542 (3,153) 2,448 (2,899) SCP - Direcional/ACR - Lago 2,661 (1,948) 1,342 (1,214) Direcional Corretora de Imóveis S.A. 1,116 (3,006) (46) (982) Ônix Empreendimentos Imobiliários Ltda. 785 (1,931) 2,261 (3,135) Mar Turmalina Empreendimentos Imobiliarios Ltda. 586 (2,458) - - SCP - Direcional/Eólica - Retiro dos Artistas 568 (478) (12) (280) SCP - Direcional/ASCC/Diedro-Eliza Miranda (577) 688 (2,148) 347 Direcional Rubi Empreendimentos Imobiliarios Ltda. (817) (1,259) 3,182 (3,581) Direcional TSC Jamari Empreendimentos Imobiliarios Ltda. (897) (145) (96) (200) Abaré Empreendimentos Imobiliários Ltda. (1,003) (1,700) 6,883 (6,466) Direcional TSC Jatuarana Empreendimentos Imobiliarios Ltda. (1,230) (274) 102 (877) Palmeira Empreendimentos Imobiliários Ltda. (1,456) (2,352) (1,181) 43 Jonasa Empreendimentos Imobiliários Ltda. (1,588) (1,563) 7,465 (7,043) Capixaba Empreendimentos Imobiliarios Ltda. (2,725) 1,415 2,506 (1,931) Other 1,019 (15,635) 27,652 (34,429) 83,930 (127,472) 67,862 (83,738) 9/30/2016 9/30/2015 Revenue and costs of units under construction Net revenue from units sold ( - ) Cost of units sold Net revenue from units sold ( - ) Cost of units sold Construction services 628,590 (492,960) 766,885 (609,329) Jequia Empreendimentos Imobiliários Ltda. 114,228 (71,661) 42,134 (26,474) Ônix Empreendimentos Imobiliários Ltda. 36,394 (33,579) 17,740 (14,130) Ouro Branco Empreendimentos Imobiliários Ltda. 28,496 (17,826) 17,643 (12,850) Direcional Taguatinga Engenharia Ltda. 27,078 (18,053) 15,313 (9,908) Geminiano Projeto 01 Empreendimentos Imobiliários SPE Ltda. 24,582 (22,996) 28,665 (15,360) Guarinos Empreendimentos Imobiliários Ltda. 23,009 (15,050) 9,585 (6,546) Arapiraca Empreendimentos Imobiliarios Ltda. 20,645 (9,186) 10,304 (6,561) Cajueiro Empreendimentos Imobiliários Ltda. 17,201 (17,400) 4,178 (3,206) Direcional Azeviche Empreendimentos Imobiliários Ltda. 16,515 (12,731) 12,776 (7,272) Direcional Coruripe Empreendimentos Imobiliários Ltda. 12,894 (10,128) 10,906 (7,330) Mirante Empreendimentos Imobiliários SPE Ltda. 11,332 (7,092) 16,358 (10,203) Lagoa Empreendimentos Imobiliários Ltda. 9,001 (10,080) 28,623 (15,021) Muqui Empreendimentos Imobiliários SPE Ltda. 8,996 (6,334) - - Nova Campinas Empreendimentos Imobiliários Ltda. 8,812 (4,031) - - Genebra Empreendimentos imobiliarios Ltda. 6,648 (4,107) - - Residencial Florence Park SPE Ltda. 5,363 (3,985) - - Direcional Zircone Empreendimentos Imobiliarios Ltda. 4,593 (26,605) 4,318 (8,787) Colina de Santana Empreendimentos Imobiliários SPE Ltda. 4,045 (2,641) 2,578 (1,514) Agua das Flores Empreendimentos Imobiliários Ltda ,660 (28,502) Direcional Turquesa Empreendimentos Imobiliários SPE S.A ,809 (14,117) Azurita Empreendimentos Imobiliarios Ltda ,769 (9,725) Mar Turmalina Empreendimentos Imobiliarios Ltda ,255 (6,611) Ametista Empreendimentos Imobiliarios Ltda. - (115) 7,816 (11,241) Palmeira Empreendimentos Imobiliários Ltda ,945 (3,223) Direcional Âmbar Empreendimentos Imobiliarios Ltda. (29) - 3,427 (1,956) Other 6,730 (7,548) 2,626 (5,188) 1,015,123 (794,108) 1,096,313 (835,054) 1,103,525 (921,696) 1,171,564 (921,208) 70 of 80

75 The gross revenue from real estate units under construction was reduced by a present value adjustment, in accordance with CPC 12 and also OCPC 01 (R1) items 33 and 34. The Company utilizes an average discount rate for receivables of 7.20% p.a. The Company also recognized R$ 16,601 as gross revenue (R$ 17,013 at September 30, 2015) relating to the appropriation of the barter of land for units to be developed. Financial charges incurred relating to construction borrowings are recorded in the real estate units under construction account in accordance with OCPC 01 (R1). The amounts of R$ 42,016 and R$ 37,099 were recognized and September 30, 2015, respectively, in the cost of real estate units sold account, in the statement of income. These financial charges are appropriated to income when sales are realized Costs and expenses by nature The Company opted to present the statement of income by function. The detailed information on expenses by nature is as follows: Parent company Consolidated Description 9/30/2016 9/30/2015 9/30/2016 9/30/2015 Raw materials and materials for use and consumption (877) (1,628) (652,709) (607,844) Personnel (51,624) (50,987) (270,870) (309,518) Capitalized interest - (294) (42,016) (37,099) Depreciation and amortization (5,742) (9,629) (19,077) (35,131) Third-party services (11,895) (14,543) (12,228) (15,182) Electricity, water and telephone (1,097) (1,055) (1,124) (1,129) Selling expenses (2,146) (2,625) (18,167) (15,514) Sales commission - (74) (15,888) (6,679) Other expenses (10,531) (2,899) (9,711) (2,458) (83,912) (83,734) (1,041,790) (1,030,554) Classified as Cost of real estate sold (3) (2,427) (378,484) (295,901) Cost of services rendered (113) 11 (543,212) (625,307) Selling expenses (3,653) (2,758) (38,799) (30,299) General and administrative expenses (80,143) (78,560) (81,295) (79,047) (83,912) (83,734) (1,041,790) (1,030,554) 71 of 80

76 18.4 Real estate sales contracted (consolidated) The budgeted costs to be incurred on the units sold and under construction, and unearned revenue from real estate sales, relating to projects in progress, not recorded in the quarterly information, are as follows: 9/30/2016 9/30/2015 Contracted sales to be appropriated Construction commitments to be incurred for contracted sales Contracted sales to be appropriated Construction commitments to be incurred for contracted sales Construction contracts - Minha Casa, Minha Vida 1,197,681 (917,576) 2,208,980 (1,724,773) Direcional Campinas Engenharia Ltda. - 1st phase 65,322 (30,460) - - Genebra Empreendimentos Imobiliarios Ltda. - 1st phase 33,962 (20,419) - - Residencial Florence Park Spe Ltda. - 1st phase 31,211 (20,580) - - Direcional Jequia Empreendimentos Imobiliários Ltda. - 2nd phase 30,805 (17,211) 63,020 (35,850) Direcional Taguatinga Engenharia Ltda. - 9th phase 13,245 (8,115) 16,511 (9,635) Colinas De Santana Empreendimentos Imobiliários Ltda. - 1st phase 11,812 (6,806) 5,896 (3,274) Mirante Empreendimentos Imobiliários Ltda. - 1st phase 10,559 (5,681) 23,631 (13,598) Almeria Empreendimentos Imobiliarios Ltda. - 1st phase 10,042 (5,915) - - Guarinos Empreendimentos Imobiliários Ltda. - 1st phase 9,251 (5,651) 26,522 (16,305) Direcional Arapiraca Empreendimentos Imobiliários Ltda. - 1st phase 8,070 (3,924) 14,804 (8,538) Muqui Empreendimentos Imobiliários Ltda. - 1st phase 6,543 (4,039) - - Riacho Branco Empreendimentos Imobiliários Ltda. - 1st phase 4,482 (2,923) - - Nova Estoril Empreendimentos Imobiliários Ltda. - 1st phase 3,423 (1,985) - - Água Marinha Empreendimentos Imobiliários Ltda. - 3rd phase 3,388 (2,327) - - Ouro Branco Empreendimentos Imobiliários Ltda. - 5th phase 2,592 (1,480) 11,211 (6,315) Ouro Branco Empreendimentos Imobiliários Ltda. - 7th phase 2,051 (1,137) 8,416 (4,047) Direcional Taguatinga Engenharia Ltda. - 9th phase 2,038 (1,165) - - Ouro Branco Empreendimentos Imobiliários Ltda. - 9th phase 1,429 (790) - - Ouro Branco Empreendimentos Imobiliários Ltda. - 8th phase 1,378 (758) 5,751 (3,786) Direcional Rubi Empreendimentos Imobiliarios Ltda. - 2nd phase 478 (259) - - Direcional Jequia Empreendimentos Imobiliários Ltda. - 1st phase ,753 (49,206) Lagoa Empreendimentos Imobiliários Ltda. - 1st phase ,309 (13,446) Geminiano Projeto 01 Empreendimentos Imobiliários Ltda. - 1st phase ,806 (16,684) Azeviche Empreendimentos Imobiliários Ltda. - 1st phase ,953 (13,996) Azurita Empreendimentos Imobiliarios Ltda. - 3rd phase ,171 (9,632) Direcional Coruripe Empreendimentos Imobiliários Ltda. - 1st phase ,618 (10,989) Ônix Empreendimentos Imobiliários Ltda. - 5th phase ,420 (13,218) Direcional Agua das Flores Empreendimentos Imobiliários Ltda. - 1st phase ,052 (7,321) Direcional Cajueiros Empreendimentos Imobiliários Ltda. - 1st phase ,205 (6,010) Ouro Branco Empreendimentos Imobiliários Ltda. - 1st phase - - 5,136 (3,409) Ouro Branco Empreendimentos Imobiliários Ltda. - 2nd phase - - 4,546 (3,430) Ouro Branco Empreendimentos Imobiliários Ltda. - 4th phase - - 4,536 (3,428) Ouro Branco Empreendimentos Imobiliários Ltda. - 3rd phase - - 3,864 (2,900) Geminiano Projeto 01 Empreendimentos Imobiliários Ltda. - 1st phase - - 3,697 (1,845) Direcional Palmeira Empreendimentos Imobiliários Ltda. - 2nd phase - - 1,613 (1,018) Turmalina Empreendimentos Imobiliários Ltda. - 1st phase (472) Parent company - 1st phase (341) Direcional Rubi Empreendimentos Imobiliarios Ltda. - 1st phase (2) 1,449,762 (1,059,201) 2,657,754 (1,983,468) 72 of 80

77 19 Finance result Parent company Consolidated Finance income 9/30/2016 9/30/2015 9/30/2016 9/30/2015 Income from financial investments 30,414 24,838 45,863 42,615 Monetary adjustment and contractual interest 2,132 1,721 5,036 6,931 32,546 26,559 50,899 49,546 Finance costs Interest expenses (33,014) (30,457) (34,111) (33,157) Bank expenses (1,030) (468) (4,652) (3,385) (34,044) (30,925) (38,763) (36,542) Finance result, net (1,498) (4,366) 12,136 13, of 80

78 20 Income tax and social contribution The composition of income tax and social contribution expenses for the periods ended September 30, 2016 and September 30, 2015 reflects the timing difference between the cash basis of accounting, utilized by the SCPs and SPEs, which are taxed based on deemed profit and the Special Taxation Regime (RET), as well as the provision for tax on the balance of trade receivables. This difference can be summarized as follows: Parent company Consolidated 9/30/2016 9/30/2015 9/30/2016 9/30/2015 Profit before income tax and social contribution 52,953 92,846 81, ,854 IRPJ and CSLL at 34% 34% 34% 34% 34% Estimated IRPJ and CSLL expenses 18,004 31,568 27,801 46,190 Entities subject to taxation based on actual taxable income Additions and exclusions 7,154 6, Exclusion - equity in the results of investees (122,134) (186,515) - - Taxation base (62,162) (86,815) - - Companies taxed based on deemed profit Taxation base , ,754 Rates applicable to deemed profit 2.28% % 2.28% Tax expenses ,668 Deferred tax Companies taxed based on the RET (1%) Taxation base - - 1,333,653 1,101,156 Rates applicable to the RET 0.47% % 0.47% Tax expenses - - 6,620 5,399 Deferred tax - - (352) (224) Companies taxed based on the RET (4%) Taxation base - 1, , ,731 Rates applicable to the RET 1.92% 1.92% 1.92% 1.92% Tax expenses - 1,018 11,196 12,559 Deferred tax - (995) (944) (2,311) IRPJ and CSLL expense for the period (4) (23) (16,781) (18,017) Effective tax rate 0.01% 0.02% 21.51% 13.26% The Company (Parent company) had a balance of income tax and social contribution losses on which no deferred tax assets were recognized, since there is no perspective of realization through future taxable profits in view of the Company's status as a holding company. Due to the taxation basis adopted by the SCPs and SPEs (deemed profit or RET), these entities do not have temporary differences. 74 of 80

79 21 Financial instruments The Company and its subsidiaries enter into transactions involving financial instruments to finance their activities or to invest available funds. The management of the related risks is realized through the definition of conservative strategies aimed at liquidity, profitability and security. The control policy consists of actively monitoring the contracted rates versus the market rates. The financial instruments usually contracted by the Company and its subsidiaries are those recorded under "Cash and cash equivalents", as well as borrowings for the construction of real estate projects and for the purchase of machinery and equipment. The Company did not operate with derivatives in the period ended September 30, 2016 and in the year ended December 31, The book values of financial instruments at the reporting date, substantially represented by short-term investments and financing agreements, approximate their estimated market value, since these transactions are subject to floating rates. Interest rate risk The Company is exposed to floating-rate interest rate risk, substantially in respect of the CDI rate, which remunerates its financial investments contracted in Brazilian reais, the interest on loans contracted from the National Housing System (SFH) indexed to the TR, the interest on loans for purchases of machinery and equipment from the National Bank for Economic and Social Development (BNDES)(FINAME) indexed to the TJLP and TJ462, as well as CDI-linked interest on loans for working capital, leasing, debentures and CRI. Liquidity risk The Company manages liquidity risk through cash flow analyses, seeking to maintain available funds at a level sufficient to meet its short-term requirements. Foreign exchange risk The Company had no debts or receivables denominated in foreign currency and none of the Company's significant costs is denominated in foreign currency. Credit risk Financial instruments that potentially subject the Company to credit risk concentration primarily consist of bank balances, short-term investments and trade receivables. The Company limits its exposure to the credit risk associated with banks and short-term investments by investing in short-term, highly liquid securities with leading financial institutions. With respect to trade receivables, the Company limits its exposure to credit risk by selling to a broad customer base and through a continuous credit analysis. There was no significant concentration of credit risk associated with customers. Trade receivables are secured by the corresponding real estate, and ownership of the real estate is only transferred on the full payment of the debt. 75 of 80

80 Fair value of financial instruments The book values of financial instruments, mainly represented by short-term investments and financing agreements, are presented in the balance sheet at amounts that approximate market values for similar transactions. The fair value used for recording short-term investments was determined based on prices quoted in active markets for similar operations and is classifiable in Level 1 of the fair value hierarchy. Sensitivity analysis The Company and its subsidiaries are required to present a sensitivity analysis for each type of market risk to which the entity is exposed at each reporting date, deriving from financial instruments and considered to be significant by management. Since the Company has no derivative financial instruments, it is only exposed with respect to changes in floating interest rates that affect both finance income from short-term investments and finance costs on loans. Therefore, the financial instruments of the Company and its subsidiaries recorded as assets are free from significant risk since they earn interest at the CDI rate. Borrowings are linked to changes in the reference interest rate plus a fixed spread, in the case of financing for construction (SFH), to the CDI rate plus a fixed spread, in the case of leasing, CRI and debentures, to the TJLP and TJ462 rates plus a fixed spread, in the case of financing for the acquisition of equipment through BNDES (FINAME), and to the CDI in the case of loans for working capital. In order to conduct its sensitivity analysis, the Company utilized market projections for The positive and negative impacts are as follows: September 30, 2016 Increase/decrease percentage Effect on profit before taxes - 25% 1, % (1,012) Business risk management Risk control system In order to efficiently manage its risk, the Company exercises operational control over all projects in progress. Under this management model, the Company calculates potential losses in simulations of unfavorable conditions for each individual venture and for all the projects as a whole, as well as for the maximum cash exposure required. Maximum cash exposure control The risk control system monitors future cash requirements to execute the ventures scheduled in the Company's portfolio, based on the economic feasibility study of each venture, as well as on the requirements for individual cash flows in relation to the projected cash flow of the projects as a whole. This projection helps defining the strategy for financing and decision-making in relation to the selection of ventures. 76 of 80

81 Demand risk management Through market knowledge and with contributions from the local partners, the Company identifies the demand for new projects in different regions, as well as the income bracket of prospective buyers. Launches are defined in terms of the potential of each region to absorb a certain number of real estate units and respond to price changes. The Company does not intend to operate in markets for which there is no reliable data available to permit a market potential analysis and, therefore believes that the demand risk relating to its launches is reduced. Operating risk Operating risk management is primarily carried out through the continuous monitoring of the development of ventures as regards the execution of the physical and financial schedule of projects, the initial planning of a financial and accounting audit by an independent audit firm, and a careful analysis of the legal and credit risks relating to buyers of real estate units, through the active management of the project receivables. Capital management Capital management involves the Company's choice to adopt a certain financing structure for its operations. The Company manages its capital structure, which consists of the ratio of debt to own capital (equity, retained earnings and revenue reserves), based on internal policies and benchmarks. The key indicators relating to this objective are as follows: Weighted Average Cost of Capital (WACC), net debt/ebitda and net debt/equity. Total debt consists of borrowings (Note 10). The Company can change its capital structure based on economic and financial conditions, in order to improve its financial leverage and debt management. The Company includes loans and financing less cash and cash equivalents in its net debt structure. Consolidated Description 9/30/ /31/2015 Borrowings 905, ,451 (-) Cash and cash equivalents 485, ,634 (-) Financial investments 83,696 62,541 Net debt 336, ,276 Equity 1,809,401 1,777,485 Equity and net debt 2,146,124 2,114, of 80

82 22 Stock Option Plan and incentive linked to the Company's shares Remuneration with stock options At the Extraordinary Meeting of Stockholders held on December 22, 2009, the Company's stockholders approved a stock options plan, establishing the rules and conditions for granting stock options to employees, directors and officers, in order to attract, motivate and retain them, as well as to align their interests with those of the Company and its stockholders. Two programs were created, comprising a total of 8,674,673 options, representing the same number of shares. The Board of Directors has already granted 8,799,978 options, of which 3,570,117 were effectively exercised and 4,961,861 were canceled. The changes in options were as follows: Program 1 Program 2 Grant year 2009 to to 2015 Total number of options (A) 3,963,301 4,711,372 Exercise price R$ 1.20 R$ (*) Vesting period 20% p.a. 20% p.a. Changes in options Options granted (B) 4,259,978 4,540,000 Options exercised (3,202,117) (368,000) Options canceled (C) (979,861) (3,982,000) Outstanding options 78, ,000 Balance of options to be granted (**) - - (*) The exercise price considers the issue price restated by reference to the Amplified Consumer Price Index (IPCA) until 9/30/2016, as well as an adjustment due to the payment of dividends of R$ 0.141/share in May 2010, R$ 0.30/share in February 2011, R$ 0.27/share in June 2012, R$ 0.36/share in May 2013, R$ 0.37/share in May 2014, R$ 0.24/share in November 2014, R$ 0.18/share in May 2015, R$ 0.27/share in August 2015 and R$ 0.27/share in July (**) The Board of Directors cannot grant new options in Plans 1 or 2 since the effective term expired on December 23, The fair value of the last options granted was calculated based on the Black & Scholes methodology, considering a historical volatility of 33.29%, an average interest rate of 9.00% p.a., and the respective exercise prices of each program. The average fair value of Program 1 options was estimated at R$ 9.97 each, and that of Program 2 was estimated at R$ 5.32 each. Should the beneficiaries of all the options already granted and not exercised under Programs 1 and 2 exercise their options, the maximum dilution of the ownership interest of the current stockholders would be 0.2%. 78 of 80

83 Share-based remuneration ("Matching Program") The Board of Directors' Meeting held on May 15, 2015 approved the regulations of the first incentive program linked to shares of Direcional Engenharia S.A. ("Matching Program"), subsequently modified at the meeting held on July 21, The Program establishes the rules and conditions for granting the right to purchase shares and granting incentive shares to officers and employees of the Company and/or Special Purpose Entities in which the Company has an interest ("Beneficiaries"), who are previously selected by the Board of Directors, in order to attract, motivate and retain them and align their interests with those of the Company and its stockholders. In order to participate in the Matching Program, the beneficiaries should acquire common shares issued by the Company, in number and term individually defined by the Board of Directors. For each Company's common share acquired by the Beneficiaries of the Matching Program, the Company will grant two common shares of the Company to the Beneficiaries, and the delivery will be carried out in batches of 25% of the total shares over four years. For the Beneficiary to be entitled to receive the incentive shares at the end of each vesting period, they shall not have sold or transferred, fully or partially, the shares held by such Beneficiary of the New Plan, including those received due to the ending of previous vesting periods. The numbers of shares granted, vesting and exercise periods, approved by the Board of Directors, are shown below: Matching Program Grant year 2015 Term for the transfer of shares 4 years, 25% per year, as from December 31, 2016 Changes in shares granted Total shares granted (A) 506,000 Grants available for the acquisition of shares 444,800 Grants unavailable for the acquisition of shares (B) 61,200 Cancelled grants (B) 14,541 Shares delivered to the Beneficiaries (D) 1,459 Outstanding grants (A) (B) (C) (D) 428,800 The fair value of the last shares granted was calculated based on the Black & Scholes methodology, considering an average historical volatility of 45.33%, an average interest rate of 14.15% p.a., and the exercise price of R$ In the nine-month period ended September 30, 2016, the amount of R$ 468 was recorded as a provision. The future expense to be recognized in relation to the program over the next 39 months totals R$ 767 as. Should the beneficiaries receive all the options already granted and not delivered, the maximum dilution of the ownership interest of the current stockholders would be 0.3%. 79 of 80

84 23 Events after the reporting period According to the Significant Event Notice disclosed on October 24, 2016, pursuant to CVM Instruction 400, of December 29, 2003, and CVM Instruction 414, of December 30, 2004, as amended ("CVM Instruction 400" and "CVM Instruction 414", respectively), a request for the registration of the issue of book-entry real estate receivables certificates of the 379th issue by the Brazilian Securities Companhia de Securitização ("CRI" and "Brazilian Securities") was filed on October 24, 2016, for public distribution, of the 379th Series of the First Issue by the Brazilian Securities Companhia de Securitização ("Issue" and "Brazilian Securities"), with a par value of R$ 1, on the date of issue of the Certificate of Real Estate Receivables (CRI), which will total the basis issue amount of, initially, up to R$ 120,000, and the amount of the CRI and the amount of the Issue may be increased by up to 35% in the case of exercise of options of an additional allotment and overallotment, as provided for in Articles 14, Paragraph 2 and 24 of CVM Instruction 400, respectively, under the coordination of Banco Itaú BBA S.A. and XP Investimentos Corretora de Câmbio Títulos e Valores Mobiliários S.A. The CRI will be backed by 1 Real Estate Credit Bill to be issued by Itaú Unibanco S.A. ( "CCI"), based on a Bank Credit Note to be issued in the amount of up to R$ 162,000, ("CCB"), representing all the real estate credits to be granted by Itaú Unibanco S.A. to Direcional. Direcional will use such real estate credits to finance, directly or through equity interest in specific purpose companies directly or indirectly controlled by Direcional, of real estate developments with related residential purposes in the CCB. The issue of the CCB was authorized by the Board of Directors' meeting held on October 24, Direcional is related to the Issue as the debtor of the real estate credits, which are fully represented by the Real Estate Credit Bill (CCI), which will back the Certificate of Real Estate Receivables (CRI). The Issue of the CRI was approved by the representatives of Brazilian Securities at the Board of Directors Meeting held on June 26, 2014, which approved the maximum volume of issues of the Certificates of Real Estate Receivables by Brazilian Securities, that is, R$ 25,000,000,000.00, generically for all its issues, the minute of which was registered with the São Paulo Board of Trade on July 25, 2014, under number /14-0. The Issue will be subject to favorable market conditions. In due time, a notice to the market will be disclosed, pursuant to article 53 and 54-A of Brazilian Securities Commission (CVM) Instruction 400, containing information on: (I) the other characteristics of the Issue; (Ii) the places to obtain the preliminary prospectus of the Issue; (Iii) the estimated dates and places of disclosure of the Issue; and (iv) the conditions, the procedure and the date for carrying out the book building procedure. The Issue will begin after the respective registration by the CVM, the announcement of the beginning of distribution, pursuant to articles 52 and 54-A of CVM Instruction 400 and the availability of the definitive prospectus to the investing public. * * * 80 de 80

85 EARNINGS RELEASE 3Q16 (DC3) Secreta - Altamente Confidencial