Direcional Engenharia S.A. Quarterly information (ITR) at June 30, 2017 and report on review of quarterly information

Transcrição

1 (A free translation of the original in Portuguese) Direcional Engenharia S.A. Quarterly information (ITR) at June 30, 2017 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 June 30, 2017, comprising the balance sheet as at that date and the statements of operations and comprehensive income (loss) for the quarter and six-month period then ended, and the changes in equity and cash flows for the six-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 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 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 financial information consists of 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. PricewaterhouseCoopers, Rua dos Inconfidentes 911, 17º e 18º, Belo Horizonte, MG, Brasil , Caixa Postal 289 T: (31) , F: (31) ,

3 Direcional Engenharia S.A 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 2.3. Our report on the review of the quarterly information is not qualified in respect of this matter. 3

4 Direcional Engenharia S.A Other matters Statements of value added We have also reviewed the parent company and consolidated statements of value added for the six-month period ended June 30, These statements are the responsibility of the Company's management, 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, August 10, 2017 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 Note 6/30/ /31/2016 6/30/ /31/2016 Current assets: Cash and cash equivalents 4 405, , , ,735 Financial investments , ,816 Trade receivables - real estate development 5 2,517 5, , ,265 Trade receivables - services rendered , ,714 Land to be developed , ,006 Completed real estate units 6.2 1, , ,205 Real estate units under construction , ,606 Taxes recoverable - 17,116 17,612 22,656 22,424 Receivables for the sale of quotas - 32,000 34,102 32,000 34,102 Other receivables - 40,294 20,996 81,038 61,473 Related parties ,183 61,876 65,276 76,926 Total current assets 571, ,425 2,658,106 2,518,272 Non-current assets: Trade receivables - real estate development , ,364 Land to be developed 6.1 1,649 56,338 1,260,504 1,276,593 Available-for-sale land ,078 - Judicial deposits - 5,975 3,678 14,121 11,595 Other receivables - 15,581 12,793 15,783 12,994 Related parties 7.1-8,089-8,089 Investments 8 1,396,278 1,452,165 45,137 50,593 Property and equipment 9 39,105 45,054 64,065 69,777 Intangible assets - 2,793 3,193 3,037 3,490 Total non-current assets 1,461,399 1,581,332 1,537,109 1,571,495 Total assets 2,032,886 2,050,757 4,195,215 4,089,767 The accompanying notes are an integral part of this quarterly financial information. 1 of 67

6 Balance sheet All amounts in thousands of reais (continued) Parent company Consolidated Note 6/30/ /31/2016 6/30/ /31/2016 Current liabilities: Borrowings , , , ,295 Trade payables - 3,357 7,155 65,244 99,116 Salaries and social charges 11 9,801 8,759 31,195 26,831 Tax liabilities ,295 23,248 Current income tax and social contribution payable ,873 Deferred income tax and social contribution payable ,772 15,419 Real estate commitments payable ,238 55,786 Advances from customers ,480 5,869 Other payables 15 36,012 39,052 44,591 44,706 Related parties ,227 34,977 14,108 13,133 Total current liabilities 208, , , ,276 Non-current liabilities: Borrowings , , , ,565 Trade payables ,866 7,866 Provision for warranties ,135 43,065 Tax liabilities ,676 2,927 Deferred income tax and social contribution payable ,522 2,740 Real estate commitments payable 13-52, , ,585 Advances from customers 14-2, , ,326 Provision for tax, labor and civil risks ,703 35,999 Other payables ,000 26,000 Related parties , Total non-current liabilities 280, ,011 1,910,105 1,589,073 Equity: Share capital , , , ,982 Capital reserves , , , ,595 Stock options granted - 4,622 2,720 4,622 2,720 Carrying value adjustment - (21,180) (20,976) (21,180) (20,976) Treasury shares (40,993) (41,511) (40,993) (41,511) Revenue reserves , , , ,373 1,543,374 1,594,183 1,543,374 1,594,183 Non-controlling interests , ,235 1,543,374 1,594,183 1,682,327 1,747,418 Total liabilities and equity 2,032,886 2,050,757 4,195,215 4,089,767 The accompanying notes are an integral part of this quarterly financial information. 2 of 67

7 Statement of operations Periods ended June 30 (A free translation of the original in Portuguese) Parent company Consolidated Note 6/30/2017 6/30/2016 6/30/2017 6/30/2016 Net revenue ,055 2, , ,939 Cost of real estate sold and services rendered 18.2 (170) (12) (343,051) (632,283) Gross profit 1,885 2,625 37, ,656 Operating income (expenses): General and administrative expenses 18.3 (48,761) (54,591) (55,044) (55,340) Selling expenses 18.3 (1,071) (1,711) (25,348) (26,103) Equity in results of investees 8 (1,912) 108,972 (982) (1,301) Other operating income (expenses) - (1,501) (1,060) (3,205) (5,315) (53,245) 51,610 (84,579) (88,059) Finance income and costs Finance costs 19 (17,548) (21,129) (19,800) (24,582) Finance income 19 16,401 18,727 25,866 31,585 (1,147) (2,402) 6,066 7,003 Profit (loss) before taxation (52,507) 51,833 (40,529) 75,600 Income tax and social contribution (7,428) (12,034) Profit (loss) for the period Profit (loss) attributable to: Non-controlling interests in Special Partnerships (SCPs) and Special Purpose Entities (SPEs) - Profit (loss) attributable to: Direcional Engenharia S.A. (52,507) 51,833 (47,957) 63, (4,550) (11,733) (52,507) 51,833 (52,507) 51,833 Earnings (loss) per share Basic 17.5 (0.36) 0.35 Diluted 17.5 (0.36) 0.35 The accompanying notes are an integral part of this quarterly financial information. 3 of 67

8 Statement of comprehensive income (loss) Periods ended June 30 All amounts in thousands of reais (A free translation of the original in Portuguese) Parent company Consolidated 6/30/2017 6/30/2016 6/30/2017 6/30/2016 Profit (loss) for the period (52,507) 51,833 (47,957) 63,566 Total comprehensive income (loss) for the period (52,507) 51,833 (47,957) 63,566 Attributable to: Owners of the parent (52,507) 51,833 Non-controlling interests 4,550 11,733 (47,957) 63,566 The accompanying notes are an integral part of this quarterly financial information. 4 of 67

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 Note Share capital Treasury shares Issue/ disposal of shares Capital reserves Stock options granted Carrying value adjustment Legal Profit retention Revenue reserves For investment Retained earnings (accumulated deficit) Equity - Parent company Non-controlling interests Equity - Consolidated 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 non-controlling (6,513) interests 17.6 (6,513) Profit for the period ,833 51,833 11,733 63,566 Sale of treasury shares (166) At June 30, ,982 (41,582) 207,666 2,474 (20,868) 25, , ,864 51,833 1,697, ,164 1,834,904 At December 31, ,982 (41,511) 207,595 2,720 (20,976) 25, , ,864-1,594, ,235 1,747,418 Options granted , ,902-1,902 Capital decrease by non-controlling (18,832) interests 17.6 (18,832) Loss for the period (52,507) (52,507) 4,550 (47,957) Sale of treasury shares (518) Transactions with non-controlling (204) (204) - interests 17.6 (204) At June 30, ,982 (40,993) 207,077 4,622 (21,180) 25, , ,864 (52,507) 1,543, ,953 1,682,327 The accompanying notes are an integral part of this quarterly financial information. 5 of 67

10 Statement of cash flows Periods ended June 30 All amounts in thousands of reais (A free translation of the original in Portuguese) Parent company Consolidated 6/30/2017 6/30/2016 6/30/2017 6/30/2016 Operating activities Profit (loss) before income tax and social contribution (52,507) 51,833 (40,529) 75,600 Adjustments to reconcile profit (loss) with cash from operations: Depreciation and amortization 4,564 4,732 12,255 14,366 Equity in the results of investees 1,912 (108,972) 982 1,301 Provision for warranties (540) 1 (12,930) 5,865 Interest on borrowings 11,691 18,851 37,668 49,252 Provision for tax, labor and civil risks 214 (1,722) (296) (2,162) Income from barter transactions - - 1,414 (6,040) Taxes - - (1,881) (1,540) Adjustment to present value on trade receivables - - (2,592) (665) Provision for stock option plan 1, , Changes in assets Trade receivables 3,115 (1,586) 151,957 44,816 Inventories (690) 43,480 (22,743) 5,689 Sundry credits (22,281) (10,669) (22,778) 11,363 Related parties 2,718 (2,645) 19,739 (4,684) Taxes recoverable 496 1,963 (232) 2,347 Changes in liabilities Trade payables (6,759) (2,766) (38,550) 2,535 Salaries and social charges 1,042 3,891 4,364 17,410 Tax liabilities (341) (411) (3,329) (1,277) Real estate commitments payable - (43,480) (35,949) (63,328) Advances from customers - - (2,990) (974) Trade payables (3,040) 7,312 (115) 3,557 Related parties (29,930) 11, (3,355) Cash provided by (used in) operating activities (88,434) (28,544) 46, ,399 Income tax and social contribution paid - - (9,254) (12,802) Net cash provided by (used in) operating activities (88,434) (28,544) 37, ,597 Cash flow from investing activities Increase in investments (SPCs and SPEs) (59,126) (74,854) 209 (17,577) Dividends received 113, ,156 4,265 4,188 Purchases of property and equipment (138) 973 (2,015) (87) Additions to intangible assets (52) (622) (63) (654) Financial investments - - (40,332) (87,964) Net cash provided by (used in) investing activities 53, ,653 (37,936) (102,094) Cash flows from financing activities Transactions with non-controlling interests (204) - (204) - Dividends paid (46) New borrowings 200, , , ,488 Repayment of borrowings (69,926) (75,933) (203,478) (209,969) Interest paid (18,550) (20,695) (47,142) (47,545) Capital increase - non-controlling stockholders - - (18,832) (6,513) Net cash provided by financing activities 112,125 57,942 10,129 37,415 Increase in cash and cash equivalents 77, ,051 9,281 72,918 Cash and cash equivalents At the beginning of the period 328, , , ,624 At the end of the period 405, , , ,542 The accompanying notes are an integral part of this quarterly financial information. 6 of 67

11 Statement of value added Periods ended June 30 All amounts in thousands of reais (A free translation of the original in Portuguese) Parent company Consolidated 6/30/2017 6/30/2016 6/30/2017 6/30/2016 Revenue Real estate sold and services rendered 2,420 3, , ,655 Other operating expenses (1,501) (1,060) (3,205) (5,315) 919 2, , ,340 Inputs acquired from third parties Raw materials used (1,638) (530) (276,808) (443,180) Materials, electricity, outsourced services and (6,830) (7,688) (28,269) (7,884) other operating expenses Other (10,498) (8,435) (10,216) (29,455) (18,966) (16,653) (315,293) (480,519) Gross value added (18,047) (13,823) 88, ,821 Depreciation and amortization, net (4,564) (4,732) (12,255) (14,366) Net value added generated by the Company (22,611) (18,555) 76, ,455 Value added received through transfer Equity in the results of investees (1,912) 108,972 (982) (1,301) Finance income 16,401 18,727 25,866 31,585 14, ,699 24,884 30,284 Total value added to distribute (8,122) 109, , ,739 Distribution of value added Personnel 26,472 34,929 69, ,582 Taxes and contributions 365 1,253 33,549 66,750 Remuneration of third-party capital 17,548 21,129 45,777 52,841 Profits reinvested/(loss) for the period (52,507) 51,833 (52,507) 51,833 Profit attributed to non-controlling interests - - 4,550 11,733 (8,122) 109, , ,739 The accompanying notes are an integral part of this quarterly financial information. 7 of 67

12 (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 August 10, 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 20, 2017 and filed on the same date. 2.1 Basis of preparation The financial statements have 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 financial statements, are disclosed in Note 3. 8 of 67

13 (a) Consolidated interim 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), and is identified 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 interim 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 interim quarterly information, subsidiaries and corporate or incorporate joint ventures are recorded based on the equity method of accounting, proportionately adjusted to the Group's interest in the contractual rights and obligations. The same adjustments are made in the parent company and consolidated financial statements to reach the same profit or loss and equity attributable to the owners of the parent entity. For the purposes of recognizing equity in the result of operations, the financial statements 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 operations 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. 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 operations. 9 of 67

14 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 acquisition- byacquisition 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 operations. 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". (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. 10 of 67

15 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. Joint arrangements are all entities over which the Group shares control with one or more parties. Investments in joint arrangements 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 operations 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 jointlycontrolled 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 operations. 2.3 Revenue recognition 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) Completed real estate units Revenue from credit sales of completed units is recognized at the time of the delivery, when 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. 11 of 67

16 (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 operations. 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. 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 operations according to the units sold, not having an impact on the determination of the percentage of cost incurred in relation to total cost (POC). (c) Interest income Interest income is recognized on the accrual basis, using the effective interest rate method. When a loan and receivable instrument is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument. Subsequently, as time elapses, interest is incorporated into loans and receivables against interest income. This interest income is calculated at the same effective interest rate used to determine the recoverable amount, that is, the original rate of the instrument. 12 of 67

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) Recognition of revenue from real estate units under construction 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). 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. Revenue is calculated by multiplying this percentage (POC) by the fair value of the revenue from already-contracted sales. Accordingly, revenue is continuously recognized throughout the progress of the real estate development project. 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 financial statements would have been a decrease in equity and an adjustment to the profit or loss for the period, since the revenue and the related costs and taxes would be recognized on the delivery of the completed units. (b) 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 results of the Company and its subsidiaries, as described in Note 3.1. (a), Revenue recognition, mentioned above. 13 of 67

18 (c) Provisions 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 external 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. 4 Cash and cash equivalents Parent company Consolidated Description 6/30/ /31/2016 6/30/ /31/2016 Cash and banks ,017 51,578 Cash equivalents - financial investments 405, , , ,157 Total 405, , , ,735 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 86% to 107% of CDI, according to the nature and timing of each instrument. At June 30, 2017, the average annual gross remuneration on the financial instruments of the Company in the last twelve months corresponded to % of CDI. 14 of 67

19 5 Trade receivables Parent company Consolidated Trade receivables - real estate development (a) 6/30/ /31/2016 6/30/ /31/2016 Completed units 2,184 5, , ,277 Incomplete units , ,139 Trade receivables - land sold 351-1,456 1,966 (-) Adjustment to present value - - (8,166) (10,753) 2,535 5, , ,629 Trade receivables - services rendered Management of construction work Real estate intermediation - - 1, Construction contracts , ,796 Other services , ,714 2,535 5, ,978 1,088,343 Current portion 2,517 5, , ,979 Non-current portion , ,364 (a) Because of the revenue recognition criteria, the balance of trade receivables from incomplete units sold is not fully reflected in the financial statements, 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 financial statements. The consolidated balance of trade receivables and December 31, 2016 is presented net of adjustments to present value amounting to R$ 8,166 and R$ 10,753, 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 June 30, 2017 and December 31, 2016, the average discount rate of 5.73% 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. At June 30, 2017 and December 31, 2016, the Company recorded no estimate for losses in its receivables from sales of real estate units, because the recoverability of the receivables was 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. At June 30, 2017 and December 31, 2016, the Company considered that the trade receivables from sales of real estate units are completely realizable and, therefore, recorded no provisions for sales cancelled by the customers. 15 of 67

20 The composition of trade receivables from real estate development and services rendered at June 30, 2017 and December 31, 2016, which are recorded in current assets in the financial statements, is as follows: Consolidated 6/30/ /31/2016 Not yet due 1Q17-534, ,160 3Q17 515,058 86,922 4Q17 170,026 94,892 1Q18 33,692-2Q18 15, , ,104 Overdue For up to 30 days 13,407 12,183 From 31 to 60 days 2,382 3,328 From 61 to 90 days 2,898 3,676 From 91 to 120 days 8,679 3,313 From 121 to 150 days 4,241 2,241 From 151 to 180 days 9,326 2,856 More than 180 days 36,903 34,278 77,836 61, , ,979 The maturity of amounts not yet due, recorded in non-current assets and December 31, 2016, is scheduled as follows: Consolidated 6/30/ /31/2016 Up to December ,211 54,852 Up to December ,973 24,059 Up to December ,181 14,992 After December ,019 44, , , of 67

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) 6/30/ /31/2016 Land of venture Tarumã Ari - 9,916 Land of venture Cachamorra Rossi - 9,300 Land of venture Estrada do Bom Retiro - 5,616 Land of venture Jardim Novo Horizonte - 5,062 Land of venture Grão Pará 1,649 1,649 Land of venture Saturno - 15,200 Land of venture Jardim América - 5,200 Land of venture Nova Caucaia - 4,395 Total parent company 1,649 56, of 67

22 Per SCP, SPE or venture (subsidiaries) 6/30/ /31/2016 Alcobaça Construções e Empreend. Imob. SPE Ltda. 176, ,804 Canário Engenharia Ltda. 127, ,614 Alto Buritis Participações Societárias Ltda. 110, ,873 Jequia Empreendimentos Imobiliários Ltda. 78,093 62,340 Rio Real Empreendimentos Imobiliários Ltda. 74,615 74,608 Direcional Taguatinga Engenharia Ltda. 65,017 58,562 Alto Santo Empreendimentos Imobiliários Ltda. 61,869 61,523 Munique Empreendimentos Imobiliários Ltda. 38,849 38,822 Conde Empreendimentos Imobiliários Ltda. 37,956 3,383 Água Branca Empreendimentos Imobiliários Ltda. 32,664 32,643 Vinhedo Empreendimentos Imobiliários Ltda. 30,933 30,923 Mandaguari Empreendimentos Imobiliários Ltda. 29,054 - Altos Pilares Empreendimentos Imobiliários Ltda. 27,789 27,415 Rio Verde Empreendimentos Imobiliários Ltda. 24,509 24,509 Marselha Empreendimentos Imobiliários Ltda. 24,181 24,157 Direcional Santo Antônio Empreendimentos Imobiliários Ltda. 23,930 23,918 Napoli Empreendimentos Imobiliários Ltda. 23,537 23,385 Ibia Empreendimentos Imobiliários Ltda. 23,040 - Pedra Branca Empreendimentos Imobiliários Ltda. 22,320 22,253 Cidreira Empreendimentos Imobiliários Ltda. 21,978 - Direcional Jordão Empreendimentos Imobiliários Ltda. 20,911 20,305 Riachos Empreendimentos Imobiliários Ltda. 20,901 20,799 Guaira Empreendimentos Imobiliários Ltda. 20,116 - Direcional Safira Empreendimentos Imobiliários Ltda. 18,758 18,758 Coral Empreendimentos Imobiliários Ltda. 18,664 17,894 Brauna Empreendimentos Imobiliários Ltda. 18,135 18,135 Embauba Empreendimentos Imobiliários Ltda. 18,074 18,063 Água Marinha Empreendimentos Imobiliários Ltda. 17,498 17,227 Boa Nova Empreendimentos Imobiliários Ltda. 17,021 17,010 Nova Alvorada Empreendimentos Imobiliários Ltda. 16,983 - Veneza Empreendimentos Imobiliários Ltda. 16,805 - Direcional Feijo Empreendimentos Imobiliários Ltda. 16,793 16,576 Maranguape Empreendimentos Imobiliários Ltda. 16,403 16,401 Direcional Construtora Valparaíso Ltda. 15,476 15,476 Colina Empreendimentos Imobiliários SPE Ltda. 14,638 14,169 Caieiras Empreendimentos Imobiliários Ltda. 14,521 - Olímpia Empreendimentos Imobiliários Ltda. 14,347 13,569 Santa Margarida Empreendimentos Imobiliários Ltda. 13,566 13,561 Bello Villarinho Empreendimentos Imobiliários SPE Ltda. 13,196 12,801 Riacho Branco Empreendimentos Imobiliários Ltda. 12,873 12,873 Juazeiro Empreendimentos Imobiliários Ltda. 12,745 12,640 Catalão Empreendimentos Imobiliários Ltda. 11,788 11,768 Bella Carioca Empreendimentos Imobiliários SPE Ltda. 11,649 11,386 Direcional Âmbar Empreendimentos Imobiliários Ltda. 10,755 10,755 Ônix Empreendimentos Imobiliários Ltda. 10,146 8,140 Jaguaribe Empreendimentos Imobiliários Ltda. 10,051 9,919 Montebelo Empreendimentos Imobiliários Ltda. 9,972 - Xapuri Empreendimentos Imobiliários Ltda. 9,925 24,847 Medina Empreendimentos Imobiliários Ltda. 9,694 - Florença empreendimentos imobiliários Ltda. 8,915 8,814 Malaquita Empreendimentos Imobiliários Ltda. 8,227 8,197 Constantina Empreendimentos Imobiliários Ltda. 7,863 - Nobres Empreendimentos Imobiliários Ltda. 7,323 - Castanheira Empreendimentos Imobiliários Ltda. 7,177 7,023 Ouro Branco Empreendimentos Imobiliários Ltda. 7,128 17,608 SCP - Direcional/ASCC/Diedro-Eliza Miranda 7,011 7,013 Arinos Empreendimentos Imobiliários Ltda. - 9,391 Other 84,734 60,416 Total subsidiaries 1,626,376 1,394,261 Total consolidated 1,628,025 1,450, of 67

23 Parent company Consolidated Description 6/30/ /31/2016 6/30/ /31/2016 Current , ,006 Non-current 1,649 56,338 1,260,504 1,276, Completed real estate units 1,649 56,338 1,628,025 1,450,599 Per venture (Parent company) 6/30/ /31/2016 Completed units to be sold 1, Total parent company 1, Per SCP, SPE or venture (subsidiaries) 6/30/ /31/2016 Azurita Empreendimentos Imobiliários Ltda. 33,990 32,090 Tarauacá Empreendimentos Imobiliários Ltda. 22,713 22,435 Agua das Flores Empreendimentos Imobiliários Ltda. 16,483 14,979 Cajueiro Empreendimentos Imobiliários Ltda. 15,179 - Lagoa Empreendimentos Imobiliários Ltda. 12,962 13,179 Palmeira Empreendimentos Imobiliários Ltda. 12,671 13,010 SCP - Direcional/ASCC/Diedro-Eliza Miranda 8,549 8,379 Direcional Azeviche Empreendimentos Imobiliários Ltda. 5,446 - Mar Turmalina Empreendimentos Imobiliários Ltda. 4,418 5,949 Direcional Zircone Empreendimentos Imobiliários Ltda. 3,919 - Direcional Porto Acre Empreendimentos Imobiliários Ltda. 3,418 7,266 Direcional Esmeralda Empreendimentos Imobiliários Ltda. 1,885 3,283 Direcional Âmbar Empreendimentos Imobiliários Ltda. 1, Capixaba Empreendimentos Imobiliários Ltda ,973 Direcional Brasileia Empreendimentos Imobiliários Ltda Una Empreendimentos Imobiliários Ltda ,073 Ametista Empreendimentos Imobiliários Ltda ,277 Abaré Empreendimentos Imobiliários Ltda Ouro Branco Empreendimentos Imobiliários Ltda SCP - Jacundá Direcional Rubi Empreendimentos Imobiliários Ltda Jonasa Empreendimentos Imobiliários Ltda Alexandrita Empreendimentos Imobiliários Ltda Ônix Empreendimentos Imobiliários Ltda Direcional Turquesa Empreendimentos Imobiliários SPE S.A Seabra Empreendimentos Imobiliários Ltda Direcional Patrimar Maragogi Empreendimentos Imobiliários Ltda. - 1,565 Other 994 2,182 Total subsidiaries 151, ,415 Total consolidated 153, , of 67

24 6.3. Real estate units under construction SCP, SPE or venture 6/30/ /31/2016 Direcional Zircone Empreendimentos Imobiliários Ltda. 125, ,963 Jequia Empreendimentos Imobiliários Ltda. 58,801 42,152 Arapiraca Empreendimentos Imobiliários Ltda. 39,398 34,183 Jardim Amaralina Empreendimentos Imobiliários SPE Ltda. 36,934 38,534 Geminiano Projeto 01 Empreendimentos Imobiliários SPE Ltda. 24,642 22,620 Ouro Branco Empreendimentos Imobiliários Ltda. 22,174 7,978 Direcional Rubi Empreendimentos Imobiliários Ltda. 21,695 25,643 Portal das Rosas Empreendimentos Imobiliários Ltda. 19,237 18,506 Direcional Jordão Empreendimentos Imobiliários Ltda. 16,445 16,005 Xapuri Empreendimentos Imobiliários Ltda. 13, Muqui Empreendimentos Imobiliários SPE Ltda. 12,847 13,965 Riacho Branco Empreendimentos Imobiliários Ltda. 12,403 13,321 Colina de Santana Empreendimentos Imobiliários SPE Ltda. 10,611 7,878 Nova Estoril Empreendimentos Imobiliários Ltda. 9,288 9,395 Mirante Empreendimentos Imobiliários SPE Ltda. 8,566 5,834 Guarinos Empreendimentos Imobiliários Ltda. 8,110 5,795 Santa Gisela Empreendimentos Imobiliários SPE Ltda. 8,095 - Campos Verdes Empreendimentos Imobiliários Ltda. 8,054 9,588 Genebra Empreendimentos Imobiliários Ltda. 7,660 5,949 Direcional Taguatinga Engenharia Ltda. 6,481 11,050 Bella Trindade Empreendimentos Imobiliários Ltda. 6,266 - Novo Oriente Empreendimentos Imobiliários Ltda. 5,156 7,417 Água Marinha Empreendimentos Imobiliários Ltda. 3,687 4,835 Residencial Florence Park SPE Ltda. 3,663 4,713 Carneiros Empreendimentos Imobiliários Ltda. 3,230 6,109 Jupia Empreendimentos Imobiliários Ltda. 2,877 3,647 Almeria Empreendimentos Imobiliários Ltda. 2,519 1,845 Cristalina Empreendimentos Imobiliários Ltda. 2,486 - Santorini Empreendimentos Imobiliários Ltda. 1,747 - Direcional SPL Ponciano Empreendimentos Imobiliários Ltda. 1,335 1,327 Nova Campinas Empreendimentos Imobiliários Ltda. 1,174 1,371 Cajueiro Empreendimentos Imobiliários Ltda. - 25,538 Other 1,268 13,418 Total consolidated 506, , Available-for-sale land The company has two plots of land, one in the city of Sorocaba, in the state of São Paulo, and the other one in Jacarepaguá, in the state of Rio de Janeiro, where there is no prospect or intention to start development projects, so these plots of land are available for sale. 6/30/ /31/2016 SCP - Jardim Carandá 4,075 - Geminiano Projeto 01 Empreendimentos Imobiliários SPE Ltda. 4,003-8, of 67

25 6.5. 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 June 30, 2017, interest amounting to R$ 30,482 (R$ 66,303 at December 31, 2016) was capitalized in properties for sale accounts and the amount of R$ 41,342 (R$ 36,837 at December 31, 2016) remained capitalized in respect of unsold units. The average annual rate utilized for interest capitalization was 12.58% in the second quarter of 2017 (13.28% for the year ended December 31, 2016). 7 Related parties 7.1. Related companies Assets Parent company Consolidated Receivables - partners in projects (a) 6/30/ /31/2016 6/30/ /31/2016 Citycasa Incorporações Imobiliária Ltda. - 2,056 13,704 15,681 Seven Engenharia Ltda ,518 7,691 Victa Participações Ltda ,245 - Via Magma Construções Empreendimentos Ltda ,939 4,452 Construtora Marka Ltda ,451 - Alaforte Empreendimentos e Participações Ltda ,878 18,092 Masb Desenv. Imobiliário S.A ,631 - Somattos Engenharia e Comércio Ltda , RPS Engenharia ,625 Eólica Construtora Ltda SPL Engenharia Ager Incorporações Imobiliárias Ltda. - 5,079-13,883 Other ,318 5, ,099 44,994 67, of 67

26 Parent company Consolidated Current account - projects (b) 6/30/ /31/2016 6/30/ /31/2016 Ouro Branco Empreendimentos Imobiliários Ltda. 15,532 4, SCP Floramar 15,107 13,367 15,107 13,431 SPE Jardim Amaralina 7,923 8, Jatuarana Empreendimentos Imobiliários Ltda. 4,999 4, Grande Vereda Empreendimentos Imobiliários Ltda. 4,005 4, SCP Viver Melhor Sorocaba 2,776 2, SCP Jardim Carandá 2,679 2, Satuba Empreendimentos Imobiliários Ltda. 2,474 2, Alexandrita Empreendimentos Imobiliários Ltda. 2,413 2, Direcional Construtora Valparaíso Ltda. 1,979 1, Direcional Esmeralda Empreendimentos Imobiliários Ltda. 1,687 1, Direcional Poranga Empreendimentos Imobiliários Ltda. 1,563 1, Turquesa Empreendimentos Imobiliários Ltda. 1,508 4, Direcional Opala Empreendimentos Ltda. 1,058 1, Direcional TSC Rio Madeira Empreendimentos Imobiliários Ltda. 1,008 1, Seabra Empreendimentos Imobiliários Ltda ,122 4,046 Other 5,340 4, ,051 61,866 20,281 17,477 72,183 69,965 65,276 85,015 Current 72,183 61,876 65,276 76,926 Non-current - 8,089-8, of 67

27 Liabilities Parent company Consolidated Payables - partners in projects (a) 6/30/ /31/2016 6/30/ /31/2016 Trisul S.A ,653 7,805 Via Magna Construções e Empreendimentos Ltda ,255 2,502 Alaforte Empreendimentos e Participações Ltda ,563 - SPL Engenharia Ltda DC Empreendimentos Imobiliários Edifica Empreendimento Arq. e Engenharia S.A Costa Novaes Luppha Forcasa Incorporações Imob. Ltda Other - - 1,942 1, ,108 13,133 Current account - projects (b) Seabra Empreendimentos Imobiliários Ltda. 12,174 10, Mirante Empreendimentos Imobiliários Ltda. 5,333 5, Capela Empreendimentos Imobiliários Ltda. 2,035 2, Agua das Flores Empreendimentos Imobiliários Ltda. 1,843 1, Direcional Coruripe Empreendimentos Imobiliários Ltda. 1,025 1, Lagoa Empreendimentos Imobiliários Ltda Direcional Turquesa Empreend. Imobiliários Ltda. - 31, SCP Parque dos Resedás SCP Bosque Azul Other 1,041 1, ,902 53, ,227 54,157 14,108 1,302 Current 24,227 34,977 14,108 13,133 Non-current - 19, (a) Receivables - partners in projects The Company provides loans to certain partners, usually non-controlling partners of the SPEs. These transactions are settled upon 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. 23 of 67

28 Result The Company charters aircraft of ALVG Participações e Locações Ltda. ("ALVG") for the transportation of directors during business-related activities. During the period ended June 30, 2017, monthly payments of R$ 260 were made regarding the aircraft leasing. ALVG is a subsidiary of the same group that controls Direcional. The Company carried out on December 10, 2014 the sale and lease back of the real estate that became its headquarters by entering into a contract, effective for 12 years, with BRL Edifícios Comerciais Investment Fund, the owner of this real estate. This operation was approved by the Company's Board of Directors and performed at market value, according to the assessment made by CB Richard Ellis (CBRE). During the period ended June 30, 2017, monthly payments of R$ 500 (December 31, monthly payments of R$ 477) were made regarding the real estate rental. This investment fund and Direcional are controlled by the same group Management compensation The total annual compensation of the Board of Directors and Executive Board approved for 2017 and the compensation paid in 2016 are as follows: Approved for Board of Directors Statutory Audit Board Statutory Executive Board Total Number of members (*) Annual fixed compensation (R$) ,150 3,115 Variable compensation (R$) 150-1,000 1,150 Stock-option-based compensation (R$) 100-3,245 3,345 1, ,395 7,610 Realized in Board of Directors Statutory Audit Board Statutory Executive Board Total Number of members (*) Annual fixed compensation (R$) ,779 2,684 Stock-option-based compensation (R$) ,065 2,987 (*) 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 02/2016. 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. 24 of 67

29 8 Investments in subsidiaries and joint ventures (parent company financial statements) (a) The changes in investments for the period ended June 30, 2017 were as follows: Parent company Subsidiaries Holding 12/31/2016 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 6/30/2017 SCP - Direcional/MRV - Serra da Canastra 50.00% (109) SCP - Direcional/Aterpa - Santa Inês 50.00% SCP - Direcional/Aterpa - Cidade Nova 50.00% SCP - Direcional/Lasa - Águas Claras II 50.00% (5) SCP - Direcional/Capla - Brasília % 3 - (240) - (237) SCP - Direcional/Lucas/Tulio - Club House % 3,239-3 (2,101) 1,141 SCP - Direcional SPL Campinas 50.00% (48) SCP - Direcional/Eólica - Retiro dos Artistas 50.00% (8) SCP - Direcional/ASCC/Diedro-Eliza Miranda 40.00% 9, (145) 9,099 SCP - Jacundá 88.00% 8,225 (4,962) (636) - 2,627 SCP - Direcional/ACR - Ouro Preto 97.19% (3) Direcional Taguatinga Engenharia Ltda % 93,887 (10,664) 4, ,520 Canário Engenharia Ltda % 58, ,184 Altana Empreendimentos Imobiliários Ltda % Nova Campinas Empreendimentos Imobiliários Ltda % 821 (2,570) 1, Direcional Construtora Valparaíso Ltda % (274) - (429) (388) (1,091) Jonasa Empreendimentos Imobiliários Ltda % 18,178 (6,886) 437 (527) 11,202 SCP - Direcional/Edifica - Edifico Chopin 79.00% Direcional Diamante Empreendimentos Imobiliários Ltda % 25,640 - (692) (8,768) 16,180 Ametista Empreendimentos Imobiliários Ltda % 7,510 - (3,674) 393 4,229 Direcional Opala Empreendimentos Imobiliários Ltda % 2, (415) 2,389 Direcional Esmeralda Empreendimentos Imobiliários Ltda % 6,433 (2,750) ,875 Direcional Safira Empreendimentos Imobiliários Ltda % 3,336 - (310) 190 3,216 Direcional Rubi Empreendimentos Imobiliários Ltda % 34,588 (3,860) 1,605 1,337 33,670 Direcional Âmbar Empreendimentos Imobiliários Ltda % 10,455 - (86) ,019 SCP - Direcional/ACR - Gran Riserva 98.10% 789 (42) 55 (9) 793 SCP - Direcional/ACR - Paradiso 98.10% 567 (643) (71) 81 (66) SCP - Direcional/ACR - Maura Valadares 98.10% (37) (37) SCP - Direcional/ACR - Lago 98.10% 3,516 (1,883) ,145 Direcional TSC Rio Madeira Empreendimentos Imobiliários Ltda % (523) (340) Direcional TSC Jamari Empreendimentos Imobiliários Ltda % (72) (133) (15) Direcional TSC Jatuarana Empreendimentos Imobiliários Ltda % (4,405) - (260) 145 (4,520) SCP - Direcional/ACR - Le Parc de France 98.10% 251 (94) SCP - Direcional/ACR - Santa Mônica 98.10% (252) (157) Ônix Empreendimentos Imobiliários Ltda % 20,573 - (388) (1,696) 18,489 Direcional Sodalita Empreendimentos Imobiliários Ltda % 3,227 - (1) 40 3,266 Malaquita Empreendimentos Imobiliários Ltda % 8, ,224 Una Empreendimentos Imobiliários Ltda % 6,063 (1,962) ,791 Alexandrita Empreendimentos Imobiliários Ltda % 2,001 (143) 396 (20) 2,234 Bujari Empreendimentos Imobiliários Ltda % 798 (196) (186) (23) 393 Coral Empreendimentos Imobiliários Ltda % 18,127 - (195) ,906 Direcional Zircone Empreendimentos Imobiliários Ltda % 126,307 - (10,587) 20, ,937 Jaspe Empreendimentos Imobiliários Ltda % Direcional Corretora de Imóveis S.A % 2,583 - (6,285) 4, of 67

30 Subsidiaries Holding 12/31/2016 Dividends/ amortization Equity in results of investees Capital subscription reduction)/ AFAC 6/30/2017 Azurita Empreendimentos Imobiliários Ltda % 4,578 - (2,714) 1,049 2,913 Abaré Empreendimentos Imobiliários Ltda % 8,892 (2,147) (558) 437 6,624 Água Marinha Empreendimentos Imobiliários Ltda % 24, ,793 Direcional Turquesa Empreendimentos Imobiliários SPE S.A % 36,197 (874) (152) (34,798) 373 Flourita Empreendimentos Imobiliários Ltda % 1,185 - (146) (527) 512 Direcional Azeviche Empreendimentos Imobiliários Ltda % 5,803 (3,461) (867) 8,275 9,750 Arinos Empreendimentos Imobiliários Ltda. 0.00% (20) - Direcional Assis Brasil Empreendimentos Imobiliários Ltda % (45) Citrino Empreendimentos Imobiliários Ltda % (6) Mar Turmalina Empreendimentos Imobiliários Ltda % 9,857 - (455) (2,266) 7,136 SCP - Direcional Petrópolis 99.90% SCP - Direcional Ozias 99.90% 49 - (6) (9) 34 Seabra Empreendimentos Imobiliários Ltda % 18,366 - (508) - 17,858 Direcional Patrimar Maragogi Empreend, Imobiliários Ltda % 1, ,854 SCP - Cidadão XI 99.90% SCP - Pro Moradia II 99.90% 10,145 - (320) 126 9,951 Capela Empreendimentos Imobiliários Ltda % 2, ,051 Direcional Porto Acre Empreendimentos Imobiliários Ltda % 20,519 - (1,206) (6,459) 12,854 Direcional Feijo Empreendimentos Imobiliários Ltda % 14, ,651 Capixaba Empreendimentos Imobiliários Ltda % 14,470-1,242 (3,074) 12,638 SCP - Meu Orgulho 99.90% (647) - (182) 544 (285) Geminiano Projeto 01 Empreendimentos Imobiliários SPE Ltda % 29,307 - (5,070) 16,222 40,459 Riacho Branco Empreendimentos Imobiliários Ltda % 7, ,253 15,644 SCP Direcional/Comim Meu Orgulho - Infra % 81 - (355) 52 (222) SCP - Sarandi - Andrade Valladares Residencial Ltda % (3) Portal das Rosas Empreendimentos Imobiliários Ltda % 13,391 - (1,511) 1,451 13,331 Direcional Santo Antônio Empreendimentos Imobiliários Ltda % 23, ,993 Arapiraca Empreendimentos Imobiliários Ltda % 29,944-1,512 3,564 35,020 Xapuri Empreendimentos Imobiliários Ltda % 16,697-1,144 3,943 21,784 Lagoa Empreendimentos Imobiliários Ltda % 18,657 - (1,163) 5,130 22,624 Tarauaca Empreendimentos Imobiliários Ltda % 48,752 - (923) (6,690) 41,139 Cajueiro Empreendimentos Imobiliários Ltda % 22,438 - (6,855) (4,642) 10,941 Riachos Empreendimentos Imobiliários Ltda % 20, ,964 Direcional Alegre Empreendimentos Imobiliários Ltda % 6, ,995 SCP Boa Casa % Carneiros Empreendimentos Imobiliários Ltda % 2, ,850 22,123 Água Branca Empreendimentos Imobiliários Ltda % 6, ,558 Direcional Coruripe Empreendimentos Imobiliários Ltda % 8,093 - (1,839) (676) 5,578 SCP - Alterosa Ribeirão das Neves 62.75% SCP - Bairro Carioca 99.90% (118) - (396) Sena Madureira Empreendimentos Imobiliários Ltda % 28 - (31) 3 - Trincheiras Empreendimentos Imobiliários Ltda % 7,165 - (356) (3,324) 3,485 Agua das Flores Empreendimentos Imobiliários Ltda % 11,204 - (1,959) 2,648 11,893 Direcional Camaragibe Empreendimentos Imobiliários Ltda % Jequia Empreendimentos Imobiliários Ltda % 26,487 - (114) 22,066 48,439 Palmeira Empreendimentos Imobiliários Ltda % 3,965 - (546) 3,500 6,919 SCP Aterrado do Leme 75.00% 1,030 - (37) SCP - Macapá 99.90% 3,821 - (3,268) 6,460 7,013 Ouro Branco Empreendimentos Imobiliários Ltda % 34,069 (10,851) 1,582 (6,896) 17,904 Japaratinga Empreendimentos Imobiliários Ltda % 148 (104) (1) - 43 Altos Pilares Empreendimentos Imobiliários Ltda % 1,611 - (10) 780 2,381 SCP - Porto Velho 99.90% 3,032 - (803) (1,738) 491 SCP - Orgulho Tropical 99.90% (726) , of 67

31 Subsidiaries Holding 12/31/2016 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 6/30/2017 SCP - Orgulho do Ceará 99.90% 14, (2,690) 12,186 Jundiá Empreendimentos Imobiliários Ltda % Colina de Santana Empreendimentos Imobiliários SPE Ltda % 8, ,465 11,448 Direcional Jordão Empreendimentos Imobiliários Ltda % 23, (1,113) 22,175 Direcional SPL Ponciano Empreendimentos Imobiliários Ltda % 1,350 - (76) 85 1,359 Rubelita Empreendimentos Imobiliários Ltda % (3) Direcional Silvestre Ltda % 3,072 - (8) (492) 2,572 Direcional Brasileia Empreendimentos Imobiliários Ltda % 1,249 - (66) (88) 1,095 Direcional São Primiano Empreendimentos Imobiliários Ltda % 1, ,700 Santa Margarida Empreendimentos Imobiliários Ltda % 13, ,562 Direcional Belo Monte Empreendimentos Imobiliários Ltda % SCP - Parque Paranoá 99.90% 8, ,313 10,591 SCP - Parque Carioca 99.90% (1,454) (983) Colina Empreendimentos Imobiliários SPE Ltda % 1, ,234 SCP - Parque dos Resedás 50.00% 729 (1,077) 77 - (271) SCP - Bosque Azul 50.10% 2,364 (2,500) (48) 30 (154) SCP - Jardim Carandá 70.00% 9,573 - (1,968) 6,149 13,754 SCP - Buritizal 99.90% 2,564 (2,736) (690) 1, SCP - Orgulho de Minas II 99.90% (253) SCP - Serra de Minas 99.90% 1,196 - (467) (1,032) (303) SCP - Viver Melhor Marituba 99.90% 3,431-2,267 (5,158) 540 Murici Empreendimentos Imobiliários SPE Ltda % 4,374 (2,320) 1,533 5,003 8,590 SCP - Viver Melhor Porto Velho 99.90% 5,804 (1,118) 752 (4,645) 793 SCP Colônia Carioca 99.90% 4,498 - (876) (2,234) 1,388 Limoeiro Empreendimentos Imobiliários Ltda % (185) - 1,209-1,024 Poranga Empreendimentos Imobiliários SPE Ltda % 8,144 (1,200) (379) 13 6,578 Grande Vereda Empreendimentos Imobiliários SPE Ltda % 275 (2,588) 1, (1,007) Vilarinho Empreendimentos Imobiliários SPE Ltda % Muqui Empreendimentos Imobiliários SPE Ltda % 3,910 (3,800) 2, ,536 Mirante Empreendimentos Imobiliários SPE Ltda % 5,516-1,669 (1,858) 5,327 SCP Viver Melhor Sorocaba 70.00% (207) - (276) (1,299) (1,782) Bela Cruz Empreendimentos Imobiliários Ltda % 10, ,660 Satuba Empreendimentos Imobiliários Ltda % 8,691 (4,052) (4,683) 2,667 2,623 Rio Verde Empreendimentos Imobiliários Ltda % 1, ,735 Direcional Viçosa Empreendimentos Imobiliários Ltda % 15,026 - (2,321) 2,581 15,286 Rio Real Empreendimentos Imobiliários Ltda % 8, ,685 Pedra Branca Empreendimentos Imobiliários Ltda % 8, ,166 Barreirinha Empreendimentos Imobiliários SPE Ltda % 61,845-4,602 (11,228) 55,219 Borba Empreendimentos Imobiliários SPE Ltda % (602) 2 2 SCP Jardim Açucena 99.90% 968 (4,477) 2, (116) SCP Cidade Jardim 99.90% 11,691 (23,124) 12,067 (565) 69 Alcobaça Construções e Empreend. Imobiliários SPE Ltda % 18, ,374 Bella Carioca Empreendimentos Imobiliários SPE LTDA % 5,022 - (1) 267 5,288 Petiolare empreendimentos S.A % 1, ,217 SCP Vera Cruz 99.90% 38,017-1,519 (28,931) 10,605 SCP Irmãos Maristas 99.90% 3,088 - (200) 73 2,961 Canavieiras Empreendimentos Imobiliários SPE Ltda % Itaguai Empreendimentos Imobiliários SPE Ltda % Napoli Empreendimentos Imobiliários Ltda % 23, ,537 Valenca Empreendimentos Imobiliários Ltda % Catalão Empreendimentos Imobiliários Ltda % Itapema Empreendimentos Imobiliários SPE Ltda % 2, ,011 Maranguape Empreendimentos Imobiliários Ltda % of 67

32 Subsidiaries Holding 12/31/2016 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 6/30/2017 Bergamo Empreendimentos Imobiliários Ltda % Marselha Empreendimentos Imobiliários Ltda % Vinhedo Empreendimentos Imobiliários Ltda % Olímpia Empreendimentos Imobiliários Ltda % (16) 901 1,255 Residencial Florence Park SPE Ltda % 1,326 (1,950) 3,656 (250) 2,782 Castanheiras Empreendimentos Imobiliários Ltda % 3,264 - (6) 891 4,149 Anapu Empreendimentos Imobiliários Ltda % 6, ,233 10,189 Conde Empreendimentos Imobiliários Ltda % 3, ,373 Juazeiro Empreendimentos Imobiliários Ltda % 1, ,794 Genebra Empreendimentos Imobiliários Ltda % 4,446 (3,917) 5,824 (2,215) 4,138 Florença empreendimentos Imobiliários Ltda % Almeria Empreendimentos Imobiliários Ltda % 2,515-1,794 2,636 6,945 Oslo Empreendimentos Imobiliários Ltda % Jupia Empreendimentos Imobiliários Ltda % ,076 Argos Empreendimentos Imobiliários Ltda % Corinto Empreendimentos Imobiliários Ltda % Nova Estoril Empreendimentos Imobiliários Ltda % 10, ,432 12,650 Santorini Empreendimentos Imobiliários Ltda % Brescia Empreendimentos Imobiliários Ltda % (80) 920 1,298 Itapetininga Empreendimentos Imobiliários Ltda % 2,675-1,399 6,768 10,842 Munique Empreendimentos Imobiliários Ltda % Agua Doce Empreendimentos Imobiliários Ltda % Alto Rio Empreendimentos Imobiliários Ltda % Alto Santo Empreendimentos Imobiliários Ltda % (9) Bella Trindade Empreendimentos Imobiliários Ltda % ,505 4,064 Campos Verdes Empreendimentos Imobiliários Ltda % 3, ,044 4,861 Cristalina Empreendimentos Imobiliários Ltda % - - 1,897 4,360 6,257 Novo Oriente Empreendimentos Imobiliários Ltda % 1, ,083 4,519 Montebelo Empreendimentos Imobiliários Ltda % - - (20) Veneza Empreendimentos Imobiliários Ltda % - - (3) 1,958 1,955 Boa Nova Empreendimentos Imobiliários Ltda % Jaguaribe Empreendimentos Imobiliários Ltda % Jardim Amaralina Empreendimentos Imobiliários SPE Ltda % 15, ,414 Embauba Empreendimentos Imobiliários Ltda % Nova Alvorada Empreendimentos Imobiliários Ltda % Solução Prestadora de Serviços de Manutenção e Reformas Ltda % - - (1) 1 - Caieiras Empreendimentos Imobiliários Ltda % Araguaina Empreendimentos Imobiliários Ltda % - - (109) Nobres Empreendimentos Imobiliários Ltda % - - (1) Santa Gisela Empreendimentos Imobiliários SPE Ltda % - - (170) 9,532 9,362 São Gotardo Empreendimentos Imobiliários Ltda % ,401,570 (108,837) (930) 59,338 1,351, of 67

33 Joint ventures Holding 12/31/2016 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 6/30/2017 Andrade Valladares Residencial Ltda. - SCP Floramar 50.00% 23,355 (1,741) (750) (472) 20,392 SPE Maura Gontijo 50.00% 37 - (14) 6 29 Bom Sucesso Incorporação e Investimentos Imobiliários S.A % 6, ,954 Patrimar Cl. Manoel 31.00% - - (2) - (2) Aterpa - Rio de Janeiro 45.00% 4,869 (190) (219) 157 4,617 Marka Direcional - SCP Vivere Residence Marco Tulio II 50.00% 2,333 (2,333) Shopping Plaza Macaé S.A % 10, ,820 Consorcio EMCCAMP/Direcional 50.00% 2, (3) 2,327 50,595 (4,264) (982) (212) 45,137 1,452,165 (113,101) (1,912) 59,126 1,396,278 Consolidated Joint ventures Holding 12/31/2016 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 6/30/2017 Andrade Valladares Residencial Ltda. - SCP Floramar 50.00% 23,355 (1,741) (750) (472) 20,392 SPE Maura Gontijo 50.00% 37 - (14) 6 29 Bom Sucesso Incorporação e Investimentos Imobiliários S.A % 6, ,954 Patrimar Cl. Manoel 31.00% - - (2) - (2) Aterpa - Rio de Janeiro 45.00% 4,869 (190) (219) 157 4,617 Marka Direcional - SCP Vivere Residence Marco Tulio II 50.00% 2,334 (2,334) Shopping Plaza Macaé S.A % 10, ,820 Consorcio EMCCAMP/Direcional 50.00% 2, ,327 50,593 (4,265) (982) (209) 45,137 At June 30, 2017, 52.21% of the Company's assets were included in the equity segregation structure, as established by Law 10,931/ of 67

34 (b) The changes in investments for the year ended December 31, 2016 were as follows: Parent company Subsidiaries Holding 2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 2016 SCP Direcional Comim Meu Orgulho % (150) Andrade Valladares Residencial Ltda. SCP Sarandi 50.00% (3) Portal das Rosas Empreendimentos Imobiliários Ltda % 10,632-1,377 1,382 13,391 Santo Antônio Empreendimentos Imobiliários Ltda % 23,935 - (2) 45 23,978 Direcional Arapiraca Empreendimentos Imobiliários Ltda % 37,294-10,407 (17,757) 29,944 SCP Direcional/Eólica/SPL Retiro dos Artistas 50.00% (71) Direcional Xapuri Empreendimentos Imobiliários Ltda % 15,493 - (57) 1,261 16,697 Lagoa Empreendimentos Imobiliários Ltda % 17,946 - (2,597) 3,308 18,657 Tarauacá Empreendimentos Imobiliários Ltda % 36,238-2,101 10,413 48,752 Direcional Igaci Empreendimentos Imobiliários Ltda. 0.00% 8, (8,087) - Direcional Cajueiros Empreendimentos Imobiliários Ltda % 18,431 - (6,231) 10,238 22,438 Riachos Empreendimentos Imobiliários Ltda % 20, ,774 Direcional Alegre Empreendimentos Imobiliários Ltda % 6,786 - (156) 316 6,946 SCP Boa Casa % (22) Direcional Carneiros Empreendimentos Imobiliários Ltda % 876-1, ,657 Direcional Agua Branca Empreendimentos Imobiliários Ltda % 6, ,536 Direcional Coruripe Empreendimentos Imobiliários Ltda % 1,470 (382) 703 6,302 8,093 SCP Direcional Alterosa Empreendimentos Imobiliários Ltda % (545) Direcional Leopoldina Empreendimentos Imobiliários Ltda % (182) 1 - SCP Bairro Carioca 99.90% 1,208 - (2,401) 1,075 (118) Direcional Sena Madureira Empreendimentos Imobiliários Ltda % 12,608 - (22) (12,558) 28 Direcional Trincheiras Empreendimentos Imobiliários Ltda % 17,098 (10,209) 324 (48) 7,165 Direcional Aguas das Flores Empreendimentos Imobili. Ltda % 22,787 (4,745) (3,572) (3,266) 11,204 Direcional Camaragibe Empreendimentos Imobiliários Ltda % Direcional Jequiá Empreendimentos Imobiliários Ltda % 761 (24,329) 41,109 8,946 26,487 Direcional Palmeira Empreendimentos Imobiliários Ltda % 1,088 - (4,748) 7,625 3,965 SCP Aterrado do Leme 75.00% 2,591 - (1,576) 15 1,030 SCP Macapá 99.90% 1,656 - (10,190) 12,355 3,821 Direcional Ouro Branco Empreendimentos Imobiliários Ltda % 27,565-9,275 (2,771) 34,069 SCP Direcional/DIEDRO/ASCC Eliza Miranda Manaus 40.00% 8, ,075 SCP Riacho Fundo 0.00% (904) Japaratinga Empreendimentos Imobiliários Ltda % Direcional Pilar Empreendimentos Imobiliários Ltda % 1,264 - (4) 351 1,611 SCP Porto Velho 99.90% 6,860 (970) (4,045) 1,187 3,032 SCP Orgulho Tropical 99.90% 8,147 (3,324) (3,646) (1,903) (726) SCP Orgulho do Ceara 99.90% 6,457 - (1,509) 9,552 14,500 Jundiá Empreendimentos Imobiliários Ltda % (340) SCP Direcional/DAN/GFernandes Jacundá 88.00% 12,881 (3,855) (801) - 8,225 Direcional Santana Empreendimentos Imobiliários Ltda % 8, (1,020) 8,458 Direcional Jordão Empreendimentos Imobiliários Ltda % 18,159 - (953) 5,972 23,178 Direcional SPL Ponciano Empreendimentos Imobiliários Ltda % (185) (215) 74 1,676 1,350 Rubelita Empreendimentos Imobiliários Ltda % (34) Direcional Silvestre Empreendimentos Imobiliários Ltda % 3,342 (1,011) ,072 SCP Direcional/ACR Ouro Preto (Gran Parque) 97.19% 55 - (62) 4 (3) Direcional Brasileia Empreendimentos Imobiliários Ltda % 1, ,249 Direcional São Primiano Empreendimentos Imobiliários Ltda % (4) 708 1,319 Santa Margarida Empreendimentos Imobiliários Ltda % 13, ,557 Belo Monte Empreendimentos Ltda % Direcional Taguatinga Engenharia Ltda % 97,239 (11,254) 8,526 (624) 93,887 SCP Parque Paranoá 99.90% 16,417 - (16,319) 8,166 8,264 SCP Parque Carioca 99.90% (269) - (1,374) 189 (1,454) Direcional Linhares Empreendimentos Imobiliários Ltda % 1, , of 67

35 Subsidiaries Holding 2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 2016 SCP Parque dos Resedas 50.00% 784 (15) (40) SCP Bosque Azul 50.10% 3,655 (844) (446) (1) 2,364 SCP Jardim Carandá 70.00% 7,874 - (6,886) 8,585 9,573 SCP Buritizal 99.90% 2,055 (1,553) (2,590) 4,652 2,564 SCP Orgulho de Minas II 99.90% (319) - (155) 221 (253) Direcional Canário Engenharia Ltda % 56,785 - (131) 1,607 58,261 SCP Serra de Minas 99.90% 2,560 - (888) (476) 1,196 SCP Viver Melhor Marituba 99.90% 13,108 (13,351) (2,359) 6,033 3,431 Direcional Murici Empreendimentos Imobiliários Ltda % 27,552 (34,638) 15,661 (4,201) 4,374 SCP Morar Melhor Porto Velho 99.90% 10,616 - (57) (4,755) 5,804 SCP Colônia Carioca 99.90% 3,866 - (5,303) 5,935 4,498 Limoeiro Empreendimentos Imobiliários Ltda % 1,944 (2,900) 3,471 (2,700) (185) Direcional Poranga Empreendimentos Imobiliários Ltda % 14,706 (11,119) 5,335 (778) 8,144 Grande Vereda Empreendimentos Imobiliários Ltda % (992) (5,204) 6,532 (61) 275 Altana Empreendimentos Imobiliários Ltda % Direcional Nordestina Empreendimentos Imobiliários Ltda % Muqui Empreendimentos Imobiliários Ltda % 3,879 (770) 2,454 (1,653) 3,910 Mirante Empreendimentos Imobiliários Ltda % 1,636 (750) 2,760 1,870 5,516 SCP Viver Melhor Sorocaba 70.00% 2,235 - (942) (1,500) (207) Bela Cruz Empreendimentos Imobiliários Ltda % 9, ,232 Satuba Empreendimentos Imobiliários Ltda % 41,825 (68,325) 40,165 (4,974) 8,691 Rio Verde Empreendimentos Imobiliários Ltda % 1, (4) 1,735 Direcional Viçosa Empreendimentos Imobiliários Ltda % 9,763 (207) 5, ,026 Direcional Campinas Engenharia Ltda % 7,708 (3,556) 2,525 (5,856) 821 Rio Real Empreendimentos Imobiliários Ltda % 8, ,678 Pedra Branca Empreendimentos Imobiliários Ltda % 7, ,072 8,100 Direcional Barreirinha Empreendimentos Imobiliários Ltda % 38,704-28,732 (5,591) 61,845 Borba Empreendimentos Imobiliários Ltda % 1,547 - (1,902) SCP Jardim Açucena 99.90% 15,323 (9,736) 1,660 (6,279) 968 SCP Cidade Jardim 99.90% 37,517 (61,518) 51,400 (15,708) 11,691 Alcobaça Empreendimentos Imobiliários Ltda % 17, ,282 Bairro Novo RJ01 Empreendimentos Imobiliários Ltda % 2,754 - (2) 2,270 5,022 Petiolare Empreendimentos S.A % 1, ,217 Ipanema Empreendimentos Imobiliários Ltda. 0.00% (49) - SCP Vera Cruz 99.90% 12,016-2,777 23,224 38,017 SCP Irmãos Marista 99.90% 3, ,088 Canavieiras Empreendimentos Imobiliários SPE Ltda % Itaguaí Empreendimentos Imobiliários SPE Ltda % (1) 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 Imobiliários Ltda % Vinhedo Empreendimentos Imobiliários Ltda % Residencial Florence Park SPE Ltda % 2,822 (263) 1,153 (2,386) 1,326 Castanheiras Empreendimentos Imobiliários Ltda % 2,189 - (9) 1,084 3,264 Anapu Empreendimentos Imobiliários Ltda % 5, ,237 6,842 Conde Empreendimentos Imobiliários Ltda % 3, ,383 Juazeiro Empreendimentos Imobiliários Ltda % ,025 1,517 Genebra Empreendimentos Imobiliários Ltda % 1, ,295 4,446 Florença Empreendimentos Imobiliários Ltda % Almería Empreendimentos Imobiliários Ltda % 1,701 - (510) 1,324 2,515 Oslo Empreendimentos Imobiliários Ltda % Brescia Empreendimentos Imobiliários Ltda % Munique Empreendimentos Imobiliários Ltda % Direcional Construtora Valparaiso Ltda % (468) (274) SCP Direcional / MRV Serra da Canastra 50.00% Jonasa Empreendimentos Imobiliários Ltda % 27,863 (7,921) (3,754) 1,990 18,178 SCP - Direcional/Edifica - Edifício Chopin 79.00% Direcional Diamante Empreendimentos Imobiliários Ltda % 49,881 - (3,258) (20,983) 25,640 Ametista Empreendimentos Imobiliários Ltda % 19,814 - (11,594) (710) 7,510 Direcional Opala Empreendimentos Imobiliários Ltda % 3, (1,017) 2,603 Direcional Esmeralda Empreendimentos Imobiliários Ltda % 9,326 (3,300) 407-6, of 67

36 Subsidiaries Holding 2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 2016 Direcional Safira Empreendimentos Imobiliários Ltda % 5,677 - (209) (2,132) 3,336 Direcional Rubi Empreendimentos Imobiliários Ltda % 48,222 (5,267) (4,241) (4,126) 34,588 Direcional Âmbar Empreendimentos Imobiliários Ltda % 11,094 (41) (431) (167) 10,455 SCP Direcional /Aterpa Santa Inês 50.00% SCP Direcional Gran Riserva 98.10% 877 (132) SCP Direcional Paradiso 98.10% (147) (172) 567 SCP Direcional/ACR Maura Valadares 98.10% 193 (251) (32) 53 (37) SCP Direcional ACR/ Lago Sul 98.10% 4,313 (2,409) 1,887 (275) 3,516 Direcional TSC Rio Madeira Empreend. Imobiliários Ltda % (1,847) - (397) 1,721 (523) Direcional TSC Jamari Empreendimentos Imobiliários Ltda % 1,095 - (1,042) Direcional TSC Jatuarana Empreend. Imobiliários Ltda % (2,678) (492) (1,504) 269 (4,405) SCP Le Parc de France 98.10% SCP Direcional / Aterpa Cidade Nova 50.00% SCP Direcional/ACR Santa Monica 98.10% (184) - (70) 2 (252) Ônix Empreendimentos Imobiliários Ltda % 52,685 (62) (2,060) (29,990) 20,573 Malaquita Empreendimentos Imobiliários Ltda % 8, ,189 Una Empreendimentos Imobiliários Ltda % 8,425 (5,543) 3,311 (130) 6,063 Alexandrita Empreendimentos Ltda % 1,796 (230) ,001 Bujari Empreendimentos Imobiliários Ltda % (173) Coral Empreendimentos Imobiliários Ltda % 17,428 - (207) ,127 Zircone Empreendimentos Imobiliários Ltda % 96,043 - (36,689) 66, ,307 SCP Direcional / Lasa Life Residence 50.00% 34 - (64) 25 (5) Jaspe Empreendimentos Imobiliários Ltda % Direcional Corretora de Imóveis S.A % (5,059) 7,053 2,583 Azurita Empreendimentos Imobiliários Ltda % 28,172 (15,789) (3,024) (4,781) 4,578 Abaré Empreendimentos Imobiliários Ltda % 23,819 (4,515) (3,657) (6,755) 8,892 Agua Marinha Empreendimentos Imobiliários Ltda % 20,425 - (515) 4,189 24,099 Direcional Turquesa Empreendimentos Imobiliários Ltda % 27,697 (4,177) ,006 36,197 Flourita Empreendimentos Imobiliários Ltda % 11,540 (11,300) ,185 Direcional Azeviche Empreendimentos Imobiliários Ltda % 5, ,803 SCP Direcional / Capla Brasília % 3 - (2) 2 3 Arinos Empreendimentos Imobiliários Ltda % Direcional Assis Brasil Empreendimentos Imobiliários Ltda % Citrino Empreendimentos Imobiliários Ltda % (6) (6) Turmalina Empreendimentos Imobiliários Ltda % 6,527 - (2,216) 5,546 9,857 SCP Direcional Petrópolis 99.90% SCP Direcional Ozias Monteiro 99.90% Seabra Empreendimentos Imobiliários Ltda % 19,902 - (1,536) - 18,366 Maragogi Empreendimentos Imobiliários Ltda % 2,465 - (39) (1,000) 1,426 SCP Cidadão XI 99.90% 3 - (25) SCP Pro-Moradia II 99.90% 12,690 - (2,169) (375) 10,146 Capela Empreendimentos Imobiliários Ltda % 2,096 - (101) 54 2,049 Direcional Porto Acre Empreendimentos Imobiliários Ltda % 12,884 - (2,767) 10,402 20,519 Direcional Feijó Empreendimentos Imobiliários Ltda % 12,721 - (8) 1,717 14,430 Capixaba Empreendimentos Imobiliários Ltda % 12,971 (2,566) (1,415) 5,480 14,470 SCP Direcional /SPL Campinas 50.00% (46) - (184) 182 (48) SCP Meu Orgulho 99.90% (839) - (1,018) 1,210 (647) Geminiano Projeto 01 Empreendimentos Imobiliários Ltda % 21,113 (2,515) (3,899) 14,608 29,307 Direcional Rio Branco Empreendimentos Imobiliários Ltda % 5,125 - (228) 2,343 7,240 Direcional Sodalita Empreendimentos Imobiliários Ltda % 2,956 - (8) 279 3,227 SCP Direcional/Lucas/Tulio Club House % 3,530 (1) (319) 29 3,239 Nova Estoril Empreendimentos Imobiliários Ltda % - - (494) 11,207 10,713 Novo Oriente Empreendimentos Imobiliários Ltda % ,077 Catalão Empreendimentos Imobiliários Ltda % - - (13) Maranguape Empreendimentos Imobiliários Ltda % Jardim Amaralina Empreendimentos Imobiliários SPE Ltda % - (112) ,728 15,995 Itapetininga Empreendimentos Imobiliários Ltda % ,855 2,675 Campos Verdes Empreendimentos Imobiliários Ltda % ,059 3, of 67

37 Subsidiaries Holding 2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 2016 Jupia Empreendimentos Imobiliários Ltda % Olímpia Empreendimentos Imobiliários Ltda % Bella Trindade Empreendimentos Imobiliários Ltda % - - (440) Alto Santo Empreendimentos Imobiliários Ltda % ,506,050 (341,666) 78, ,955 1,401,572 Joint ventures Holding 2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 2016 Andrade Valladares Residencial Ltda. SCP Floramar 50.00% 24,617 (5,791) (1,549) 6,078 23,355 Maura Valadares Gontijo SPE Ltda % (136) Alexandria Empreendimentos Imobiliários Ltda. 0.00% - (50) Shopping Plaza Macaé S.A % ,750 10,750 Consorcio EMCCAMP/Direcional 50.00% ,327 2,327 Bom Sucesso Incorporações e Investimentos Imob. S.A % 6, ,921 SCP Direcional/Edifica/Patrimar Chopin 31.00% (11) SCP Direcional/Aterpa Rio de Janeiro 45.00% 6,742 (1,655) (218) - 4,869 Marka Direcional - SCP Vivere Residence Marco Tulio II 50.00% - (165) 116 2,383 2,334 38,106 (7,661) (1,480) 21,628 50,593 1,544,156 (349,327) 76, ,583 1,452,165 Consolidated Joint ventures Holding 2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 2016 Direct investments in joint ventures Andrade Valadares Residencial Ltda. SCP Floramar 50.00% 24,617 (5,791) (1,549) 6,078 23,355 Maura Valadares Gontijo SPE Ltda % (136) Alexandria Empreendimentos Imobiliários Ltda. 0.00% - (50) Shopping Plaza Macaé S.A % ,750 10,750 Consorcio EMCCAMP/Direcional 50.00% ,327 2,327 Bom Sucesso Incorporações e Investimentos Imobiliários S.A % 6, ,921 SCP Direcional/Edifica/Patrimar Chopin 31.00% (11) SCP Direcional/Aterpa Rio de Janeiro 45.00% 6,742 (1,655) (218) - 4,869 Marka Direcional - SCP Vivere Residence Marco Tulio II 50.00% - (165) 116 2,383 2,334 38,106 (7,661) (1,480) 21,628 50,593 Indirect investments in joint ventures Holding 2015 Dividends/ amortization Equity in results of investees Capital subscription (reduction)/ AFAC 2016 Ibicela Empreendimentos S.A % (340) Talauma Empreendimentos S.A % 17 (17) (323) (17) ,783 (7,678) (1,480) 21,968 50,593 At December 31, 2016, 58.99% of the Company's assets were included in the equity segregation structure, as established by Law 10,931/ of 67

38 (c) Below is a summary of the balance sheets of the Company's subsidiaries and jointly-controlled companies at June 30, 2017: Assets Balance sheet - 6/30/2017 Liabilities Subsidiaries Holding Current Non-current Current Non-current Equity SCP Direcional/Comim Meu Orgulho - Infra % (222) SCP - Sarandi - Andrade Valladares Residencial Ltda % 244 1, ,966 Portal das Rosas Empreendimentos Imobiliários Ltda % 22,399 2,076 3,676 7,455 13,344 Direcional Santo Antônio Empreendimentos Imobiliários Ltda % 3 23, ,995 Arapiraca Empreendimentos Imobiliários Ltda % 72,064 1,368 5,480 29,041 38,911 SCP - Direcional/Eólica - Retiro dos Artistas 50.00% Xapuri Empreendimentos Imobiliários Ltda % 15,276 11,688 4, ,805 Lagoa Empreendimentos Imobiliários Ltda % 40,062 1,494 18, ,647 Tarauaca Empreendimentos Imobiliários Ltda % 29,275 12, ,180 Cajueiro Empreendimentos Imobiliários Ltda % 44,834 7,038 32,751 8,169 10,952 Riachos Empreendimentos Imobiliários Ltda % 2,410 20, ,293 Direcional Alegre Empreendimentos Imobiliários Ltda % 85 6, ,002 SCP Boa Casa % Carneiros Empreendimentos Imobiliários Ltda % 31, ,047 7,208 22,145 Água Branca Empreendimentos Imobiliários Ltda % 7 32, ,100 6,564 Direcional Coruripe Empreendimentos Imobiliários Ltda % 18,423 3,143 14,906 1,076 5,584 SCP - Alterosa Ribeirão das Neves 62.75% SCP - Bairro Carioca 99.90% Trincheiras Empreendimentos Imobiliários Ltda % 3, ,485 Agua das Flores Empreendimentos Imobiliários Ltda % 51,943 2,690 37,312 1,976 15,345 Direcional Camaragibe Empreendimentos Imobiliários Ltda % Jequia Empreendimentos Imobiliários Ltda % 246,800 54,785 66, ,146 48,487 Palmeira Empreendimentos Imobiliários Ltda % 16,626 2,554 6,030 6,224 6,926 SCP Aterrado do Leme 75.00% 1, ,324 SCP - Macapá 99.90% 8,051 1,733 1, ,020 Ouro Branco Empreendimentos Imobiliários Ltda % 61, ,208 15,154 25,577 SCP - Direcional/ASCC/Diedro-Eliza Miranda 40.00% 14,226 9, ,747 Japaratinga Empreendimentos Imobiliários Ltda % Altos Pilares Empreendimentos Imobiliários Ltda % , ,771 2,383 SCP - Porto Velho 99.90% 2, ,094 1, SCP - Orgulho Tropical 99.90% 1, ,021 SCP - Orgulho do Ceará 99.90% 13, ,199 Jundiá Empreendimentos Imobiliários Ltda % SCP - Jacundá 88.00% 3, ,985 Colina de Santana Empreendimentos Imobiliários SPE Ltda % 19, , ,459 Direcional Jordão Empreendimentos Imobiliários Ltda % 23,032 22, ,351 Direcional SPL Ponciano Empreendimentos Imobiliários Ltda % 2, ,718 Rubelita Empreendimentos Imobiliários Ltda % Direcional Silvestre Ltda % 1,606 1, ,136 SCP - Direcional/ACR - Ouro Preto 97.19% Direcional Brasileia Empreendimentos Imobiliários Ltda % 2, ,190 Direcional São Primiano Empreendimentos Imobiliários Ltda % - 1, ,700 Santa Margarida Empreendimentos Imobiliários Ltda % 2 13, ,562 Direcional Belo Monte Empreendimentos Imobiliários Ltda % 7 1, Direcional Taguatinga Engenharia Ltda % 39,881 59,240 6,365 5,236 87,520 SCP - Parque Paranoa 99.90% 12, , ,601 SCP - Parque Carioca 99.90% (984) Colina Empreendimentos Imobiliários SPE Ltda % 1,110 14, ,278 4,467 SCP - Parque dos Resedás 50.00% (542) SCP - Bosque Azul 50.10% (307) SCP - Jardim Carandá 70.00% 26, , ,649 SCP - Buritizal 99.90% SCP - Orgulho de Minas II 99.90% Canário Engenharia Ltda % , ,248 59,243 SCP - Serra de Minas 99.90% (303) SCP - Viver Melhor Marituba 99.90% 6, ,156 1, Murici Empreendimentos Imobiliários SPE Ltda % 11, ,354 1,085 8,598 SCP - Viver Melhor Porto Velho 99.90% 4, ,130 1, SCP Colonia Carioca 99.90% 1, ,390 Limoeiro Empreendimentos Imobiliários Ltda % 3,347-1,298-2,049 Poranga Empreendimentos Imobiliários SPE Ltda % 10, , ,770 Grande Vereda Empreendimentos Imobiliários SPE Ltda % 7, , (1,343) Altana Empreendimentos Imobiliários Ltda % Vilarinho Empreendimentos Imobiliários SPE Ltda % 1 3, , Muqui Empreendimentos Imobiliários SPE Ltda % 32, ,435 23,710 2,538 Mirante Empreendimentos Imobiliários SPE Ltda % 40, ,143 27,269 5,332 SCP Viver Melhor Sorocaba 70.00% , (2,546) Bela Cruz Empreendimentos Imobiliários Ltda % 10, ,671 Satuba Empreendimentos Imobiliários Ltda % 9, ,710 1,599 2,626 Rio Verde Empreendimentos Imobiliários Ltda % 2 24, ,770 1,737 Direcional Viçosa Empreendimentos Imobiliários Ltda % 1,177 15, ,985 Alto Buritis Participações Societárias Ltda % 1, , ,677 26,346 Nova Campinas Empreendimentos Imobiliários Ltda % 11, ,839 9, of 67

39 Assets Balance sheet - 6/30/2017 Liabilities Subsidiaries Holding Current Non-current Current Non-curren Equity Guarinos Empreendimentos Imobiliários Ltda % 39,105 1,536 23,119 1,094 16,428 Rio Real Empreendimentos Imobiliários Ltda % 9 74, ,850 8,694 Pedra Branca Empreendimentos Imobiliários Ltda % ,321 1,724 13,200 8,174 Barreirinha Empreendimentos Imobiliários SPE Ltda % 60, ,151 1,255 55,275 Borba Empreendimentos Imobiliários SPE Ltda % SCP Jardim Açucena 99.90% 2, , (116) SCP Cidade Jardim 99.90% 9, ,410 1, Alcobaça Construções e Empreendimentos Imobiliários SPE Ltda % , ,756 18,393 Bello Villarinho Empreendimentos Imobiliários SPE LTDA % 13, ,809 Bella Carioca Empreendimentos Imobiliários SPE LTDA % 11, ,500 5,289 Petiolare empreendimentos S.A % - 1, ,217 SCP Vera Cruz 99.90% 13, , ,615 SCP Irmãos Maristas 99.90% 3, ,964 Canavieiras Empreendimentos Imobiliários SPE Ltda % Itaguai Empreendimentos Imobiliários SPE Ltda % 129 1, ,510 Napoli Empreendimentos Imobiliários Ltda % 24 23, ,561 Valenca Empreendimentos Imobiliários Ltda % Catalão Empreendimentos Imobiliários Ltda % 11, , Itapema Empreendimentos Imobiliários SPE Ltda % 2, ,013 Maranguape Empreendimentos Imobiliários Ltda % 16, , Bergamo Empreendimentos Imobiliários Ltda % - 5,997-5, Marselha Empreendimentos Imobiliários Ltda % 24, , Vinhedo Empreendimentos Imobiliários Ltda % 31,037-3,502 25,696 1,839 Olímpia Empreendimentos Imobiliários Ltda % 14, ,808 2,092 Residencial Florence Park SPE Ltda % 17, ,518 9,872 5,565 Castanheiras Empreendimentos Imobiliários Ltda % 7, ,490 1,565 4,154 Anapu Empreendimentos Imobiliários Ltda % 10, ,199 Conde Empreendimentos Imobiliários Ltda % 4 37,957-33,583 4,378 Juazeiro Empreendimentos Imobiliários Ltda % 12, ,937 1,795 Genebra Empreendimentos Imobiliários Ltda % 27, ,376 19,475 4,142 Florença empreendimentos Imobiliários Ltda % 8, , Itaquara Empreendimentos Imobiliários Ltda % Almeria Empreendimentos Imobiliários Ltda % 9, ,504 1,325 6,952 Oslo Empreendimentos Imobiliários Ltda % 4, , Jupia Empreendimentos Imobiliários Ltda % 4, ,746 1,077 Argos Empreendimentos Imobiliários Ltda % - 5,080-5, Corinto Empreendimentos Imobiliários Ltda % - 5,630-5, Nova Estoril Empreendimentos Imobiliários Ltda % 14, , ,663 Santorini Empreendimentos Imobiliários Ltda % 3,091 2, ,121 1,367 Brescia Empreendimentos Imobiliários Ltda % 5, ,460 1,299 Itapetininga Empreendimentos Imobiliários Ltda % 12,637 5,816 1,396 6,204 10,853 Munique Empreendimentos Imobiliários Ltda % - 38,848-38, Agua Doce Empreendimentos Imobiliários Ltda % 4, ,395 3 Alto Rio Empreendimentos Imobiliários Ltda % - 3, , Alto Santo Empreendimentos Imobiliários Ltda % 61, , Bella Trindade Empreendimentos Imobiliários Ltda % 14, ,103 8,129 Campos Verdes Empreendimentos Imobiliários Ltda % 12, ,429 4,866 Cristalina Empreendimentos Imobiliários Ltda % 17, , ,268 Novo Oriente Empreendimentos Imobiliários Ltda % 8,769 1, ,729 4,523 Montebelo Empreendimentos Imobiliários Ltda % - 9,972-9, Veneza Empreendimentos Imobiliários Ltda % 2 16,805-14,850 1,957 Brauna Empreendimentos Imobiliários Ltda % - 18,135-18,135 - Boa Nova Empreendimentos Imobiliários Ltda % 17, , Jaguaribe Empreendimentos Imobiliários Ltda % 1 10,051 2,048 7, Direcional Construtora Valparaíso Ltda % ,179 2,183 15,872 (1,091) Jardim Amaralina Empreendimentos Imobiliários SPE Ltda % 50, , ,826 Embauba Empreendimentos Imobiliários Ltda % - 18,074-18, Nova Alvorada Empreendimentos Imobiliários Ltda % - 16, , Caieiras Empreendimentos Imobiliários Ltda % 14, , Araguaina Empreendimentos Imobiliários Ltda % 5, , Coroados Empreendimentos Imobiliários Ltda % SCP - Direcional/MRV - Serra da Canastra 50.00% Jonasa Empreendimentos Imobiliários Ltda % 13,163 1, ,007 11,204 Guaira Empreendimentos Imobiliários Ltda % - 20,116-20,116 - Nobres Empreendimentos Imobiliários Ltda % 7, , Santa Gisela Empreendimentos Imobiliários SPE Ltda % 8, ,362 Castelhano Empreendimentos Imobiliários Ltda % - 3,099 3, Mandaguari Empreendimentos Imobiliários Ltda % - 29,054-29,054 - Cidreira Empreendimentos Imobiliários Ltda % - 21, ,960 - São Gotardo Empreendimentos Imobiliários Ltda % Constantina Empreendimentos Imobiliários Ltda % - 7, ,850 - SCP - Direcional/Edifica - Edifico Chopin 79.00% Ibia Empreendimentos Imobiliários Ltda % - 23,040-23,040 - Medina Empreendimentos Imobiliários Ltda % - 9,694-9,694 - Direcional Diamante Empreendimentos Imobiliários Ltda % 13,383 3, ,181 Ametista Empreendimentos Imobiliários Ltda % 10,306 1,226 6, ,229 Direcional Opala Empreendimentos Imobiliários Ltda % 1,583 2,477 1, ,435 Direcional Esmeralda Empreendimentos Imobiliários Ltda % 9, , , of 67

40 Assets Balance sheet - 6/30/2017 Liabilities Subsidiaries Holding Current Noncurrent Current Non-current Equity Direcional Safira Empreendimentos Imobiliários Ltda % 2,357 19, ,220 3,217 Direcional Rubi Empreendimentos Imobiliários Ltda % 36,186 4,042 1,692 4,863 33,673 Direcional Âmbar Empreendimentos Imobiliários Ltda % 3,053 11, ,389 11,020 SCP - Direcional/Aterpa - Santa Inês 50.00% SCP - Direcional/ACR - Gran Riserva 98.10% SCP - Direcional/ACR - Paradiso 98.10% 1, (68) SCP - Direcional/ACR - Maura Valadares 98.10% (38) SCP - Direcional/ACR Lago 98.10% 3,518 1, ,312 2,186 Direcional TSC Rio Madeira Empreend, Imobiliários Ltda % , (340) Direcional TSC Jamari Empreendimentos Imobiliários Ltda % (15) Direcional TSC Jatuarana Empreendimentos Imobiliários Ltda % 1, , (4,521) SCP - Direcional/ACR - Le Parc de France 98.10% SCP - Direcional/Aterpa - Cidade Nova 50.00% SCP - Direcional/ACR - Santa Mônica 98.10% (160) Ônix Empreendimentos Imobiliários Ltda % 11,799 10,558 1,114 2,752 18,491 Direcional Sodalita Empreendimentos Imobiliários Ltda % 3, ,266 Malaquita Empreendimentos Imobiliários Ltda % 8 8, ,232 Una Empreendimentos Imobiliários Ltda % 2,825 2, ,795 Alexandrita Empreendimentos Imobiliários Ltda % 4, , ,235 Bujari Empreendimentos Imobiliários Ltda % Coral Empreendimentos Imobiliários Ltda % 18, ,925 Direcional Zircone Empreendimentos Imobiliários Ltda % 171,229 33,677 26,625 42, ,951 SCP - Direcional/Lasa - Águas Claras II 50.00% Jaspe Empreendimentos Imobiliários Ltda % Direcional Corretora de Imóveis S.A % 2, ,059 1, Azurita Empreendimentos Imobiliários Ltda % 40,077 8, ,375 2,916 Abaré Empreendimentos Imobiliários Ltda % 3,734 3, ,631 Água Marinha Empreendimentos Imobiliários Ltda % 12,522 15, ,548 Direcional Turquesa Empreendimentos Imobiliários SPE S.A % 4, , Flourita Empreendimentos Imobiliários Ltda % Direcional Azeviche Empreendimentos Imobiliários Ltda % 9,055 9, ,663 SCP - Direcional/Capla - Brasília % (237) Direcional Assis Brasil Empreendimentos Imobiliários Ltda % 178 6,926-6, Citrino Empreendimentos Imobiliários Ltda % Mar Turmalina Empreendimentos Imobiliários Ltda % 7, ,143 SCP - Direcional Petrópolis 99.90% SCP - Direcional Ozias 99.90% Seabra Empreendimentos Imobiliários Ltda % 19, ,366 17,876 SCP - Direcional/Lucas/Tulio - Club House % 1, ,141 Direcional Patrimar Maragogi Empreendimentos Imobiliários Ltda % 4, ,121 SCP - Cidadão XI 99.90% SCP - Pro Moradia II 99.90% 10, ,961 Capela Empreendimentos Imobiliários Ltda % 2, ,051 Direcional Porto Acre Empreendimentos Imobiliários Ltda % 13, ,867 Direcional Feijo Empreendimentos Imobiliários Ltda % 15 17, ,308 14,666 Capixaba Empreendimentos Imobiliários Ltda % 9,454 3, ,650 SCP - Direcional SPL Campinas 50.00% SCP - Meu Orgulho 99.90% (285) Geminiano Projeto 01 Empreendimentos Imobiliários SPE Ltda % 85, ,189 15,066 40,868 Riacho Branco Empreendimentos Imobiliários Ltda % 39,207 3, ,636 20,186 Joint ventures Holding Current Assets Balance sheet - 6/30/2017 Liabilities Noncurrent Current Non-current Equity SPE Maura Gontijo 50.00% Bom Sucesso Incorporação e Investimentos Imobiliários S.A % ,886 3,199-24,835 Consórcio Emccamp/Direcional 50.00% 55 4, ,654 Direcional/Somattos - Bartira Mourão 50.00% Patrimar Cl. Manoel 31.00% (6) Aterpa - Rio de Janeiro 45.00% 9, ,261 Andrade Valladares Residencial Ltda. - SCP Floramar 50.00% 52,824 10,272 21, , of 67

41 (d) Below is a summary of the balance sheets of the Company's subsidiaries and jointly-controlled companies at December 31, 2016: Balance sheet Assets Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity SCP Direcional/Comim Meu Orgulho - Infra % (4) SCP - Sarandi - Andrade Valladares Residencial Ltda % 87 1, ,654 Portal das Rosas Empreendimentos Imobiliários Ltda % 18,724 2, ,391 13,405 Direcional Santo Antônio Empreendimentos Imobiliários Ltda % 3 23, ,980 Arapiraca Empreendimentos Imobiliários Ltda % 67, ,232 31,459 33,271 SCP - Direcional/Eólica - Retiro dos Artistas 50.00% Xapuri Empreendimentos Imobiliários Ltda % 47 24, ,689 16,713 Lagoa Empreendimentos Imobiliários Ltda % 61,575 2,282 44,038 1,143 18,676 Tarauacá Empreendimentos Imobiliários Ltda % 33,226 16, ,801 Cajueiro Empreendimentos Imobiliários Ltda % 52,998 8,372 29,525 9,385 22,460 Riachos Empreendimentos Imobiliários Ltda % 2,389 20, ,083 Direcional Alegre Empreendimentos Imobiliários Ltda % 84 6, ,953 SCP Boa Casa % Carneiros Empreendimentos Imobiliários Ltda % 13, ,590 8,340 2,660 Água Branca Empreendimentos Imobiliários Ltda % 7 32, ,100 6,542 Direcional Coruripe Empreendimentos Imobiliários Ltda % 21,596 3,324 15,809 1,010 8,101 SCP - Alterosa Ribeirão das Neves 62.75% SCP - Bairro Carioca 99.90% (118) Sena Madureira Empreendimentos Imobiliários Ltda % Trincheiras Empreendimentos Imobiliários Ltda % 6,276 1, ,165 Agua das Flores Empreendimentos Imobiliários Ltda % 59,865 2,569 46,277 1,700 14,457 Direcional Camaragibe Empreendimentos Imobiliários Ltda % Jequiá Empreendimentos Imobiliários Ltda % 217,820 76, , ,996 26,514 Palmeira Empreendimentos Imobiliários Ltda % 20,057 2,762 10,538 8,312 3,969 SCP Aterrado do Leme 75.00% 1, ,373 SCP Macapá 99.90% 7,235 1,750 3,028 2,132 3,825 Ouro Branco Empreendimentos Imobiliários Ltda % 55,506 9,384 11,058 5,161 48,671 SCP - Direcional/ASCC/Diedro-Eliza Miranda 40.00% 14,045 9, ,688 Japaratinga Empreendimentos Imobiliários Ltda % Altos Pilares Empreendimentos Imobiliários Ltda % 5 27, ,771 1,613 SCP - Porto Velho 99.90% 6, ,035 2,238 3,035 SCP - Orgulho Tropical 99.90% 1, , (727) SCP - Orgulho do Ceará 99.90% 15, ,515 Jundiá Empreendimentos Imobiliários Ltda % SCP - Jacundá 88.00% 8,840 1, ,347 Colina de Santana Empreendimentos Imobiliários SPE Ltda % 10,991 4,089 1,934 4,680 8,466 Direcional Jordão Empreendimentos Imobiliários Ltda % 25,865 21, ,357 Direcional SPL Ponciano Empreendimentos Imobiliários Ltda % 3, ,700 Rubelita Empreendimentos Imobiliários Ltda % Direcional Silvestre Ltda % 3, ,747 SCP - Direcional/ACR - Ouro Preto 97.19% (3) Direcional Brasileia Empreendimentos Imobiliários Ltda % 2, ,497 Direcional São Primiano Empreendimentos Imobiliários Ltda % - 1, ,319 Santa Margarida Empreendimentos Imobiliários Ltda % 2 13, ,557 Direcional Belo Monte Empreendimentos Imobiliários Ltda % 2 1, Direcional Taguatinga Engenharia Ltda % 51,625 60,391 8,652 9,477 93,887 SCP - Parque Paranoá 99.90% 17, ,310 4,407 8,272 SCP - Parque Carioca 99.90% , (1,455) Colina Empreendimentos Imobiliários SPE Ltda % , ,278 3,531 SCP - Parque dos Resedás 50.00% 1, ,459 SCP - Bosque Azul 50.10% 6, , ,719 SCP - Jardim Carandá 70.00% 20, ,474 1,485 13,676 SCP - Buritizal 99.90% 3, ,567 SCP - Orgulho de Minas II 99.90% (253) Canário Engenharia Ltda % , ,248 58,319 SCP - Serra de Minas 99.90% 1, ,197 SCP - Viver Melhor Marituba 99.90% 10, ,199 1,528 3, of 67

42 Balance sheet Assets Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity Murici Empreendimentos Imobiliários SPE Ltda % 7, ,639 1,037 4,378 SCP - Viver Melhor Porto Velho 99.90% 10, ,467 1,243 5,810 SCP Colônia Carioca 99.90% 5, , ,502 Limoeiro Empreendimentos Imobiliários Ltda % 4,003-4,372 - (369) Poranga Empreendimentos Imobiliários SPE Ltda % 13, , ,859 Grande Vereda Empreendimentos Imobiliários SPE Ltda % 10, , Altana Empreendimentos Imobiliários Ltda % Vilarinho Empreendimentos Imobiliários SPE Ltda % 1 3, , Muqui Empreendimentos Imobiliários SPE Ltda % 25, ,722 18,526 3,914 Mirante Empreendimentos Imobiliários SPE Ltda % 40, ,077 28,048 5,521 SCP Viver Melhor Sorocaba 70.00% 2, , (296) Bela Cruz Empreendimentos Imobiliários Ltda % 10, ,242 Satuba Empreendimentos Imobiliários Ltda % 16, ,685 1,678 8,699 Rio Verde Empreendimentos Imobiliários Ltda % 2 24, ,770 1,737 Direcional Viçosa Empreendimentos Imobiliários Ltda % , ,695 Alto Buritis Participações Societárias Ltda % - 129, ,677 26,341 Nova Campinas Empreendimentos Imobiliários Ltda % 6, , Guarinos Empreendimentos Imobiliários Ltda % 41, , ,241 Rio Real Empreendimentos Imobiliários Ltda % 9 74, ,850 8,686 Pedra Branca Empreendimentos Imobiliários Ltda % ,254 1,726 13,200 8,108 Barreirinha Empreendimentos Imobiliários SPE Ltda % 73, ,812 1,159 61,907 Borba Empreendimentos Imobiliários SPE Ltda % SCP Jardim Açucena 99.90% 4, , SCP Cidade Jardim 99.90% 23, ,026 1,609 11,702 Alcobaça Construções e Empreendimentos Imobiliários SPE Ltda % , ,756 18,300 Bello Vilarinho Empreendimentos Imobiliários SPE Ltda % 13, ,783 Bella Carioca Empreendimentos Imobiliários SPE Ltda % 11, ,500 5,022 Petiolare empreendimentos S.A % - 1, ,217 SCP Vera Cruz 99.90% 41, , ,055 SCP Irmãos Maristas 99.90% 3, ,091 Canavieiras Empreendimentos Imobiliários SPE Ltda % Itaguaí Empreendimentos Imobiliários SPE Ltda % 128 1, ,498 Napoli Empreendimentos Imobiliários Ltda % 23 23, ,408 Valença Empreendimentos Imobiliários Ltda % Catalão Empreendimentos Imobiliários Ltda % - 11,768-11, Itapema Empreendimentos Imobiliários SPE Ltda % 2 2, ,010 Manauara Empreendimentos Imobiliários Ltda % Maranguape Empreendimentos Imobiliários Ltda % 16, , Bergamo Empreendimentos Imobiliários Ltda % - 5,993-5, Marselha Empreendimentos Imobiliários Ltda % - 24, ,156 - Vinhedo Empreendimentos Imobiliários Ltda % 30,925-3,523 25,696 1,706 Olímpia Empreendimentos Imobiliários Ltda % 13, , Residencial Florence Park SPE Ltda % 16, ,884 12,248 2,652 Castanheiras Empreendimentos Imobiliários Ltda % 7, ,222 1,565 3,268 Anapu Empreendimentos imobiliários Ltda % 6, ,849 Conde Empreendimentos Imobiliários Ltda % 3 3, ,386 Juazeiro Empreendimentos Imobiliários Ltda % 12, ,111 1,519 Genebra Empreendimentos imobiliários Ltda % 16, ,994 10,268 4,451 Florença empreendimentos imobiliários Ltda % - 8, , Itaquara Empreendimentos Imobiliários Ltda % Almería Empreendimentos Imobiliários Ltda % 3, ,232 2,518 Oslo Empreendimentos Imobiliários Ltda % 4, , Jupia Empreendimentos Imobiliários Ltda % 3, , Nova Estoril Empreendimentos Imobiliários Ltda % 11, , ,723 Brescia Empreendimentos Imobiliários Ltda % - 5, , Itapetininga Empreendimentos Imobiliários Ltda % 7,677 2, ,604 2,678 Munique Empreendimentos Imobiliários Ltda % - 38, , Alto Rio Empreendimentos Imobiliários Ltda % - 3,100-3,100 - Alto Santo Empreendimentos Imobiliários Ltda % 25 61,523-61, Bella Trindade Empreendimentos Imobiliários Ltda % Campos Verdes Empreendimentos Imobiliários Ltda % 10, ,769 3, of 67

43 Balance sheet Assets Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity Novo Oriente Empreendimentos Imobiliários Ltda % 7, ,959 1,078 Braúna Empreendimentos Imobiliários Ltda % - 18,135-18,135 - Boa Nova Empreendimentos Imobiliários Ltda % 17, ,010 - Jaguaribe Empreendimentos Imobiliários Ltda % - 9,919 2,000 7,919 - Direcional Construtora Valparaíso Ltda % 1,448 16,186 2,075 15,833 (274) Jardim Amaralina Empreendimentos Imobiliários SPE Ltda % 36,045 12,748 16, ,991 Embaúba Empreendimentos Imobiliários Ltda % - 18,063-18,063 - SCP - Direcional/MRV - Serra da Canastra 50.00% Jonasa Empreendimentos Imobiliários Ltda % 20,773 2,200 1,117 3,676 18,180 SCP - Direcional/Edifica - Edifico Chopin 79.00% Direcional Diamante Empreendimentos Imobiliários Ltda % 22,964 4, ,643 Ametista Empreendimentos Imobiliários Ltda % 27,087 1,492 15,099 5,969 7,511 Direcional Opala Empreendimentos Imobiliários Ltda % 1,662 2,825 1, ,654 Direcional Esmeralda Empreendimentos Imobiliários Ltda % 15, , ,866 Direcional Safira Empreendimentos Imobiliários Ltda % 2,751 19, ,439 3,337 Direcional Rubi Empreendimentos Imobiliários Ltda % 36,193 4,847 4,487 1,961 34,592 Direcional Âmbar Empreendimentos Imobiliários Ltda % 2,121 11, ,311 10,456 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% (38) SCP - Direcional/ACR - Lago 98.10% 5,220 1, ,666 3,584 Direcional TSC Rio Madeira Empreendimentos Imobiliários Ltda % , (523) Direcional TSC Jamari Empreendimentos Imobiliários Ltda % Direcional TSC Jatuarana Empreendimentos Imobiliários Ltda % 1, , (4,405) SCP - Direcional/ACR - Le Parc de France 98.10% SCP - Direcional/Aterpa - Cidade Nova 50.00% SCP - Direcional/ACR - Santa Mônica 98.10% (257) Ônix Empreendimentos Imobiliários Ltda % 20,454 8,541 5,336 3,084 20,575 Direcional Sodalita Empreendimentos Imobiliários Ltda % 64 3, ,227 Malaquita Empreendimentos Imobiliários Ltda % 13 8, ,197 Una Empreendimentos Imobiliários Ltda % 3,929 2, ,069 Alexandrita Empreendimentos Imobiliários Ltda % 4, , ,001 Bujari Empreendimentos Imobiliários Ltda % 1, Coral Empreendimentos Imobiliários Ltda % 17, ,145 Direcional Zircone Empreendimentos Imobiliários Ltda % 184,200 37,169 49,113 45, ,320 SCP - Direcional/Lasa - Águas Claras II 50.00% (9) Jaspe Empreendimentos Imobiliários Ltda % Direcional Corretora de Imóveis S.A % 1, (2,072) 970 2,583 Azurita Empreendimentos Imobiliários Ltda % 42,317 9,845 1,137 46,442 4,583 Abaré Empreendimentos Imobiliários Ltda % 6,264 3, ,901 Água Marinha Empreendimentos Imobiliários Ltda % 11,347 15, ,777 Direcional Turquesa Empreendimentos Imobiliários SPE S.A % 51, , ,009 Flourita Empreendimentos Imobiliários Ltda % 1, ,186 Direcional Azeviche Empreendimentos Imobiliários Ltda % 11,240 12,013 11,431 1,310 10,512 SCP - Direcional/Capla - Brasília % Arinos Empreendimentos Imobiliários Ltda % 10 9,395-9, Direcional Assis Brasil Empreendimentos Imobiliários Ltda % 291 6, , Citrino Empreendimentos Imobiliários Ltda % (6) Mar Turmalina Empreendimentos Imobiliários Ltda % 15, , ,867 SCP - Direcional Petrópolis 99.90% SCP - Direcional Ozias 99.90% Seabra Empreendimentos Imobiliários Ltda % 19, ,292 18,385 SCP - Direcional/Lucas/Tulio - Club House % 3, ,239 Direcional Patrimar Maragogi Empreendimentos Imobiliários Ltda % 3, ,168 SCP - Cidadão XI 99.90% SCP - Pro Moradia II 99.90% 10, ,155 Capela Empreendimentos Imobiliários Ltda % 2, ,049 Direcional Porto Acre Empreendimentos Imobiliários Ltda % 21, ,160 20,540 Direcional Feijó Empreendimentos Imobiliários Ltda % 18 16, ,308 14,445 Capixaba Empreendimentos Imobiliários Ltda % 9,903 5, , of 67

44 Assets Balance sheet Liabilities Subsidiaries Holding Current Current Noncurrent Noncurrent Equity SCP - Direcional SPL Campinas 50.00% (96) SCP - Meu Orgulho 99.90% (648) Geminiano Projeto 01 Empreendimentos Imobiliários SPE Ltda % 90, ,565 31,418 41,867 Riacho Branco Empreendimentos Imobiliários Ltda % 28,782 2, ,709 9,343 Assets Balance sheet Liabilities Joint ventures Holding Current Current Noncurrent Noncurrent Equity SPE Maura Gontijo 50.00% Bom Sucesso Incorporação e Investimentos Imobiliários S.A % ,736 3,127-24,719 Patrimar Cl. Manoel 31.00% Aterpa - Rio de Janeiro 45.00% 10, ,820 Marka Direcional - SCP Vivere Residence Marco Tulio II 50.00% 5, ,275-4,667 Andrade Valladares Residencial Ltda. - SCP Floramar 50.00% 63,931 10,244 26,443 1,022 46,710 9 Property and equipment Parent company (a) Composition of balances Description Depreciation rates 2017 Property and Cost Depreciation Net equipment, net in 2016 Machinery and equipment 10% 11,845 (7,475) 4,370 4,955 Aluminum forms 20% 88,254 (63,615) 24,639 29,772 Furniture and fittings 10% 3,319 (1,161) 2,158 2,223 Vehicles 20% 828 (823) 5 8 IT equipment 20% 3,378 (2,585) Other assets (176) Leasehold improvements 8.33% 8,615 (1,510) 7,105 7,154 Total 116,450 (77,345) 39,105 45,054 (b) Changes in 2017 Cost Cost in 2016 Additions Write-offs/ transfers Cost in 2017 Machinery and equipment 11, ,845 Aluminum forms 85,694 2,560-88,254 Furniture and fittings 3, ,319 Vehicles IT equipment 3, ,378 Other assets Leasehold improvements 8, , ,417 3, ,450 (-) Depreciation in Depreciation for (-) Depreciation in Write-offs Depreciation 2016 the period 2017 Machinery and equipment (6,888) (587) - (7,475) Aluminum forms (55,922) (7,693) - (63,615) Furniture and fittings (1,000) (161) - (1,161) Vehicles (820) (3) - (823) IT equipment (2,415) (170) - (2,585) Other assets (170) (6) - (176) Leasehold improvements (1,148) (362) - (1,510) (68,363) (8,982) - (77,345) Property and equipment, net 45,054 (5,949) - 39, of 67

45 (c) Changes in 2016 Cost Cost in 2015 Additions Write-offs/ transfers Cost in 2016 Machinery and equipment 11, ,843 Aluminum forms 88,486 - (2,792) 85,694 Furniture and fittings 3, ,223 Vehicles IT equipment 3, ,322 Other assets Leasehold improvements 7, , , (2,792) 113,417 Depreciation (-) Depreciation in 2015 Depreciation for the period Write-offs (-) Depreciation in 2016 Machinery and equipment (5,700) (1,188) - (6,888) Aluminum forms (40,802) (16,466) 1,346 (55,922) Furniture and fittings (678) (322) - (1,000) Vehicles (813) (7) - (820) IT equipment (2,062) (353) - (2,415) Other assets (160) (10) - (170) Leasehold improvements (446) (702) - (1,148) (50,661) (19,048) 1,346 (68,363) Property and equipment, net 64,948 (18,448) (1,446) 45,054 Consolidated (d) Composition of balances 2017 Property and Description Depreciation equipment, Cost Depreciation Net rates net in 2016 Machinery and equipment 10% 24,532 (13,775) 10,757 11,910 Aluminum forms 20% 88,254 (63,615) 24,639 29,773 Furniture and fittings 10% 7,269 (3,118) 4,151 4,380 Vehicles 20% 2,643 (2,516) IT equipment 20% 6,855 (5,287) 1,568 1,847 Sales stands (a) 60,443 (44,924) 15,519 14,327 Other assets - 1,277 (1,077) Leasehold improvements 8.33% 8,614 (1,510) 7,104 7,153 Total 199,887 (135,822) 64,065 69,777 (a) Sales stands are depreciated according to the estimated flow of sales of each project, write-off or phase-out. 41 of 67

46 (e) Changes in 2017 Cost Cost in 2016 Additions Write-offs/ transfers Cost in 2017 Machinery and equipment 24,534 2 (4) 24,532 Aluminum forms 85,694 2,560-88,254 Furniture and fittings 7, (7) 7,269 Vehicles 2, ,643 IT equipment 6, ,855 Sales stands 56,880 4,348 (785) 60,443 Other assets 1, ,277 Leasehold improvements 8, , ,257 7,426 (796) 199,887 Depreciation (-) Depreciation in 2016 Depreciation for the period Write-offs (-) Depreciation in 2017 Machinery and equipment (12,624) (1,151) - (13,775) Aluminum forms (55,921) (7,694) - (63,615) Furniture and fittings (2,777) (341) - (3,118) Vehicles (2,498) (18) - (2,516) IT equipment (4,932) (355) - (5,287) Sales stands (42,553) (3,156) 785 (44,924) Other assets (1,027) (50) - (1,077) Leasehold improvements (1,148) (362) - (1,510) (123,480) (13,127) 785 (135,822) Property and equipment, net 69,777 (5,701) (11) 64, of 67

47 (f) Changes in 2016 Cost Cost in 2015 Additions Write-offs/ transfers Cost in 2016 Machinery and equipment 23,245 1,357 (68) 24,534 Aluminum forms 88,487 - (2,793) 85,694 Furniture and fittings 6, (8) 7,157 Vehicles 2, (31) 2,643 IT equipment 6, (10) 6,779 Sales stands 49,873 7,007-56,880 Other assets 1, (4) 1,269 Leasehold improvements 7, , ,695 9,476 (2,914) 193,257 Depreciation (-) Depreciation in 2015 Depreciation for the period Write-offs (-) Depreciation in 2016 Machinery and equipment (10,327) (2,320) 23 (12,624) Aluminum forms (40,803) (16,465) 1,347 (55,921) Furniture and fittings (2,091) (688) 2 (2,777) Vehicles (2,429) (69) - (2,498) IT equipment (4,189) (750) 7 (4,932) Sales stands (38,428) (4,125) - (42,553) Other assets (896) (134) 3 (1,027) Leasehold improvements (446) (702) (1,148) (99,609) (25,253) 1,382 (123,480) Property and equipment, net 87,086 (15,777) (1,532) 69,777 The Company and its subsidiaries have entered into thirteen 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 amounted to R$ 88,254 (R$ 85,694 at December 31, 2016). During the period, financed assets of R$ 2,560 were added to property and equipment, which have been given in guarantee of the financing. 43 of 67

48 10 Borrowings Consolidated Financing for construction 6/30/ /31/2016 Direcional Taguatinga Engenharia Ltda. 3,527 7,982 Direcional Rubi Empreendimentos Imobiliários Ltda. 3,159 - Direcional JHSF Zircone Empreendimentos imobiliários Ltda. 44,967 65,950 Direcional Ametista Empreendimentos Imobiliários Ltda. 4,596 16,321 Direcional Palmeira Empreendimentos Imobiliários Ltda. 10,181 14,618 Direcional Cajueiro Empreendimentos Imobiliários Ltda. 29,444 25,633 Jequiá Empreendimentos Imobiliários Ltda. 176, ,264 Direcional Azeviche Empreendimentos Imobiliários Ltda. - 9,988 Geminiano Projeto 01 Empreendimentos Imobiliários Ltda. 37,083 37,710 Lagoa Empreendimentos Imobiliários Ltda. 16,567 40,998 Direcional Coruripe Empreendimentos Imobiliários Ltda. 13,987 14,384 Ouro Branco Empreendimentos Imobiliários Ltda. 16,655 7,239 Agua das Flores Empreendimentos Imob. Ltda. 34,948 43,126 Direcional Turmalina Empreendimentos Imobiliários Ltda. - 5,396 Azurita Empreendimentos Imobiliários Ltda. 43,123 44,503 Guarinos Empreendimentos Imobiliários Ltda. 19,962 18,437 Mirante Empreendimentos Imobiliários Ltda. 24,632 24,531 Residencial Florence Park SPE Ltda. 2,797 4,344 Arapiraca Empreendimentos Imobiliários Ltda. 30,985 30,745 Muqui Empreendimentos Imobiliários SPE Ltda. 18,418 11,402 Nova Campinas Empreendimentos Imobiliários Ltda. 8,753 3,841 Genebra Empreendimentos Imobiliários Ltda. 15,234 5,091 Almeria Empreendimentos Imobiliários Ltda. 1,209 1,211 Colina de Santana Empreendimentos Imobiliários SPE Ltda. 6,183 5, , ,960 Parent company Consolidated 6/30/ /31/2016 6/30/ /31/2016 FINAME and finance leasing for equipment Direcional Engenharia S.A. 11,850 14,160 11,850 14,160 11,850 14,160 11,850 14,160 Certificate of Real Estate Receivables (CRI) Direcional Engenharia S.A. 264,558 95, ,558 95, ,558 95, ,558 95,027 Debentures Direcional Engenharia S.A. - 31,980-31,980-31,980-31,980 Bank Credit Note: Direcional Engenharia S.A. 138, , , , , , , ,733 Total 414, , , ,860 Current portion 135, , , ,295 Non-current portion 279, , , , of 67

49 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 2.55% 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 million 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., Flourita Empreendimentos Imobiliários Ltda., SCP Direcional/ACR Lago, Direcional Porto Acre Empreendimento Imobiliário Ltda., SCP Direcional Gontijo Fernandes Jacundá and Trincheiras EmpreendimentosImobiliários Ltda. 379th 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. 30,000 CRIs with a Nominal Unit Value of R$ 1, each were issued on December 29, The total issue amount was R$ 30,000, and the total CRI term covers the period from December 29, 2016 to December 16, 2019 ("Final Maturity Date"). The real estate receivables are supported by two bank credit certificates No , amounting to R$ 10,000,000.00, and No , amounting to R$ 20,000,000.00, both issued by Direcional Engenharia S.A. ("CCB") on December 13, 2016, 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 of 0.70% p.a. plus accumulated Interbank Deposit (DI) rate variation, considering 252 business days per year, calculated on a pro rata temporis cumulative and exponential basis per working day elapsed. Direcional will pledge, to the securitization company, a statutory lien of the quotas and the rights represented by such quotas, as issued by (i) Direcional Porto Acre Empreendimentos Imobiliários Ltda. ("Porto Acre"), and (ii) Tarauacá Empreendimentos Imobiliários Ltda. ("Tarauacá" and, together 45 of 67

50 with Porto Acre, the "SPEs involved") and owned by Direcional ("Statutory Lien"). 25th 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. 198,000 CRIs with a Nominal Unit Value of R$ 1 million each were issued on June 14, The total issue amount was R$ 198,245,913.17, and the total CRI term covers the period from June 14, 2017 to September 4, 2019 (the "Final Maturity Date"). The credits represented by the CCI and arising from Debentures, with a total issue amount of R$ 202,500,000.00, on the Issue Date of the Debentures, as well as any other charges due under the issue deed, including all the respective accessories, such as monetary restatement, interest, arrears, fines, penalties, indemnities, expenses, costs, fees, guarantees and other contractual and legal charges established in the issue deed, having as Issuer (Nova Securitização). The remuneration of the CRI, calculated based on the CRI Nominal Unit Value on the CRI issue date, comprises interest of 0.90% p.a. plus accumulated Interbank Deposit (DI) rate variation, considering 252 business days per year, calculated on a pro rata temporis cumulative and exponential basis per working day elapsed. There were no specific guarantees, whether real or personal, on the CRI, which will not have a floating guarantee from the Issuer. 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. 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. 46 of 67

51 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 112% to 114% of the monthly CDI rate. The non-current portion of the parent company loans matures as follows: Period 6/30/2017 July 2018 and June ,483 July 2019 and June , ,908 The non-current portion of the consolidated loans matures as follows: Period 6/30/2017 July 2018 and June ,658 July 2019 and June ,207 July 2020 and June ,598 As from July , , Salaries and social charges The following balances are comprised of salaries, provision for vacation pay and 13th month salary, as well as the provision for all labor and social security charges levied on salary-related amounts. Parent company Consolidated Description 6/30/ /31/2016 6/30/ /31/2016 Salaries and drawings payable 1,425 2,757 4,069 1,011 Payroll charges 1, ,490 5,410 Labor provisions 7,013 4,923 21,616 19,597 Other ,801 8,759 31,195 26, of 67

52 12 Tax liabilities The following balances comprise the provision for current taxes whose generating factor is the realization of accounts receivable and for the provision for deferred taxes, which is based on the recognition of revenue under the Percentage of Completion (POC) method, where the receipt of trade receivables is deferred during the flow of each contract Tax liabilities Parent company Consolidated Current taxes 6/30/ /31/2016 6/30/ /31/2016 Social Integration Program (PIS) Social Contribution on Revenues (COFINS) Special taxation regime - - 2,437 3,227 Other ,013 3, ,590 6,841 Deferred taxes Social Integration Program (PIS) - - 3,153 3,509 Social Contribution on Revenues (COFINS) ,604 16,267 Adjustment to present value - - (376) (442) ,381 19, ,971 26,175 Current ,295 23,248 Non-current - - 2,676 2, Income tax and social contribution Current taxes 6/30/ /31/2016 6/30/ /31/2016 Corporate Income Tax (IRPJ) ,259 Social Contribution on Net Income (CSLL) ,873 Current ,873 Non-current Parent company Consolidated Deferred taxes 6/30/ /3/2016 6/30/ /31/2016 Corporate Income Tax (IRPJ) ,676 11,907 Social Contribution on Net Income (CSLL) - - 5,618 6, ,294 18,159 Current ,772 15,419 Non-current - - 2,522 2, of 67

53 13 Real estate commitments payable Accounts payable arising from the acquisition of land for real estate development purposes are as follows: Parent company 6/30/ /31/2016 Land of venture Tarumã Ari in Manaus - State of Amazônia - 9,916 Land of venture Cachamorra Rossi - 9,300 Land of venture Guarulhos - 5,200 Land of venture Estrada do Bom Retiro - 5,616 Land of venture Jardim Novo Horizonte in Sorocaba - State of São Paulo - 4,841 Land of venture Nova Caucaia - 2,200 Land of venture Veredas Pedra Azul - - Land of venture Saturno, in Cotia - Itapevi - State of São Paulo - 15,200-52,273 SCPs, SPEs and ventures 6/30/ /31/2016 Rio Real Empreendimentos Imobiliários Ltda. 65,850 65,850 Alto Santo Empreendimentos Imobiliários Ltda. 61,110 61,110 Jequiá Empreendimentos Imobiliários Ltda. 57,288 70,020 Munique Empreendimentos Imobiliários Ltda. 38,776 38,776 Conde Empreendimentos Imobiliários Ltda. 33,583 - Mandaguari Empreendimentos Imobiliários Ltda. 29,054 - Marselha Empreendimentos Imobiliários Ltda. 24,156 24,156 Ibia Empreendimentos Imobiliários Ltda. 23,040 - Cidreira Empreendimentos Imobiliários Ltda. 21,960 - Riacho Branco Empreendimentos Imobiliários Ltda. 21,714 21,714 Guaira Empreendimentos Imobiliários Ltda. 20,116 - Braúna Empreendimentos Imobiliários Ltda. 18,135 18,135 Embaúba Empreendimentos Imobiliários Ltda. 18,013 18,063 Direcional Safira Empreendimentos Imobiliários Ltda. 17,779 17,945 Boa Nova Empreendimentos Imobiliários Ltda. 17,010 17,010 Nova Alvorada Empreendimentos Imobiliários Ltda. 16,956 - Direcional Zircone Empreendimentos Imobiliários Ltda. 16,476 17,705 Maranguape Empreendimentos Imobiliários Ltda. 16,020 16,020 Pedra Branca Empreendimentos Imobiliários Ltda. 14,920 14,920 Veneza Empreendimentos Imobiliários Ltda. 14,850 - Caieiras Empreendimentos Imobiliários Ltda. 14,364 - Olímpia Empreendimentos Imobiliários Ltda. 12,808 12,985 Catalão Empreendimentos Imobiliários Ltda. 11,694 11,694 Juazeiro Empreendimentos Imobiliários Ltda. 10,937 11,111 Portal das Rosas Empreendimentos Imobiliários Ltda. 10,434 - Montebelo Empreendimentos Imobiliários Ltda. 9,916 - Medina Empreendimentos Imobiliários Ltda. 9,694 - Muqui Empreendimentos Imobiliários SPE Ltda. 9,148 9,256 Carneiros Empreendimentos Imobiliários Ltda. 8,411 9,409 Mirante Empreendimentos Imobiliários SPE Ltda. 8,059 8,159 Constantina Empreendimentos Imobiliários Ltda. 7,850 - Campos Verdes Empreendimentos Imobiliários Ltda. 7,687 7,780 Nobres Empreendimentos Imobiliários Ltda. 6,534 - Residencial Florence Park SPE Ltda. 6,531 7,639 Bella Trindade Empreendimentos Imobiliários Ltda. 6,346 - Rio Verde Empreendimentos Imobiliários Ltda. 6,000 6,000 Other 92,773 76, , , , ,371 Parent company Consolidated 49 of 67

54 Description 6/30/ /31/2016 6/30/ /31/2016 Current ,238 55,786 Non-current - 52, , ,585-52, , , Advances from customers The advances correspond to (i) a commitment to deliver completed real estate units, arising from acquisitions of land through barter arrangements that consist of the exchange of land for units to be developed; (ii) advances from customers deriving from sales of real estate units: Parent company 6/30/ /31/2016 Land of venture Nova Caucaia - 2,196 Land of venture Jardim Novo Horizonte in Sorocaba - State of São Paulo ,416 Subsidiaries 6/30/ /31/2016 Alcobaça Construções e Empreendimentos Imobiliários SPE Ltda. 158, ,756 Alto Buritis Participações Societárias Ltda. 102, ,677 Canário Engenharia Ltda. 68,248 68,248 Altos Pilares Empreendimentos Imobiliários Ltda. 25,771 25,771 Vinhedo Empreendimentos Imobiliários 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. - 7,352 Arinos Empreendimentos Imobiliários Ltda. - 9,385 Colina Empreendimentos Imobiliários SPE Ltda. 9,207 9,207 Agua Doce Empreendimentos Imobiliários Ltda. 2,196 - Xapuri Empreendimentos Imobiliários Ltda. 3,710 7,689 Direcional Assis Brasil Empreendimentos Imobiliários Ltda. 6,560 6,560 Itapetininga Empreendimentos Imobiliários Ltda ,368 Bella Carioca Empreendimentos Imobiliários SPE Ltda. 6,500 6,500 Guarinos Empreendimentos Imobiliários Ltda Nova Campinas Empreendimentos Imobiliários Ltda. 1,228 1,310 Cristalina Empreendimentos Imobiliários Ltda. 3,375 - Other 7,341 8, , , of 67

55 Advances from customers - receipts (ii) 6/30/ /31/2016 Limoeiro Empreendimentos Imobiliários Ltda ,823 Nova Campinas Empreendimentos Imobiliários Ltda ,274 Total 454, ,195 Parent company Consolidated Description 6/30/ /31/2016 6/30/ /31/2016 Current - - 8,480 5,869 Non-current - 2, , ,326-2, , , Other payables Parent Company Consolidated Description 6/30/ /31/2016 6/30/ /31/2016 Payables to customers 8,426 9,249 10,794 11,422 Payables to partners (a) ,920 26,920 Payables for equity investments acquired (b) 26,973 28,905 26,973 28,905 Other ,904 3,459 Total 36,012 39,052 70,591 70,706 Current 36,012 39,052 44,591 44,706 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, from Trisul S.A., 50% of the quotas of SPE Jardim Amaralina for R$ 21,000. This SPE will be responsible for the construction and development of the low-income venture in Jardim Amaralina, in the city of São Paulo. 51 of 67

56 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 2.38% for development projects and 0.76% for service works. Parent company Consolidated At December 31, ,190 Provisions - 24,407 Amortization (118) (10,532) At December 31, ,065 Provisions - 4,977 Amortization (540) (17,907) At June 30, ,135 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. The provisions and December 31, 2016 were as follows: Parent company Tax Labor Civil Total At December 31, ,323 2,717 Provisions Reversals - (306) (2,256) (2,562) At December 31, Provisions Reversals - (117) (12) (129) At June 30, of 67

57 Consolidated Tax Labor Civil Total At December 31, ,116 23,308 35,595 Provisions 9 7,844 14,103 21,956 Reversals (171) (8,477) (12,904) (21,552) At December 31, ,483 24,507 35,999 Provisions - 4,170 9,136 13,306 Reversals - (5,066) (8,536) (13,602) At June 30, ,587 25,107 35,703 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$ 61,677 for labor, R$ 18,076 for tax and R$ 131,688 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 financial statements was R$ 1,200,000. Due to the cancelation of 1,900,000 common treasury shares, as approved at the Board of Directors' meeting held on February 4, 2015, the Company's share capital is represented by 153,398,749 common shares, of which 146,403,554 are outstanding and 6,995,195 are held in treasury. Number of shares Common shares Treasury shares Total December 31, ,267,378 7,131, ,398,749 Treasury shares granted 47,726 (47,726) - December 31, ,315,104 7,083, ,398,749 Treasury shares granted 88,450 (88,450) - June 30, ,403,554 6,995, ,398, 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. 53 of 67

58 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 was 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 period ended June 30, 2017, 88,450 treasury shares were granted under the Share Matching Program (47,726 shares in 2016, 35,600 shares in 2015, 441,635 shares in 2014, 851,770 shares in 2013, and 334,029 shares in 2012, relating to Programs I and II of the Stock Options plan). The number of treasury shares at June 30, 2017, therefore, totaled 6,995, 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 Profit retention reserve This reserve is recorded primarily for 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. 6/30/ /31/2016 Profit (loss) for the period (52,507) (11,862) Legal reserve (5%) - - Profit (loss) to be distributed (52,507) (11,862) Dividends paid in advance - 40,000 Total dividends paid - 40, of 67

59 On July 4, 2016, the Board of Directors approved the prepayment of dividends amounting to R$ 40,000 as interim dividends, equivalent to R$ per share Earnings per share The Company calculates earnings (loss) per share utilizing the weighted average number of total common shares outstanding in the period corresponding to the profit or loss, pursuant to Technical Pronouncement CPC 41 (IAS 33). The detailed information on the calculation of earnings (loss) per share for the periods ended June 30, 2017 and June 30, 2016 is presented below: Numerator: 6/30/2017 6/30/2016 Profit (loss) for the period (52,507) 51,833 Denominator: Weighted average number of shares 146,377, ,286,916 Earnings (loss) per share - R$ (0.36) 0.35 Diluted earnings per share 6/30/2017 6/30/2016 Numerator: Profit (loss) for the period (52,507) 51,833 Denominator: Weighted average number of shares 146,377, ,286,916 Adjustment for stock options (a) 1,309, ,862 Weighted average number of shares (diluted) 147,686, ,793,778 Diluted earnings (loss) per share - R$ (0.36) 0.35 (a) Represented by the weighted average of "in-the-money" outstanding options, under the stock option plan detailed in Note Non-controlling interests In the period ended June 30, 2017, changes in the Company's ownership interests in subsidiaries have generated a decrease in the non-controlling interests of R$ 18,832 and a net loss of R$ 204 for the Parent company's stockholders, as recorded directly in equity. 55 of 67

60 18 Result from real estate development operations and construction contracts 18.1 Net Revenue Parent company Consolidated Description 6/30/2017 6/30/2016 6/30/2017 6/30/2016 Gross sales revenue , ,931 Gross service revenue 2,239 3, , ,108 Total gross revenue 2,420 3, , ,039 Adjustment to present value - - 2,593 1,616 Taxes on sales (365) (1,253) (6,764) (9,376) Canceled sales - - (19,356) (45,340) Net operating revenue 2,055 2, , ,939 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$ of 67

61 18.2 Appropriated result relating to real estate sales Per venture (Parent company) 6/30/2017 6/30/2016 Revenue and costs of completed real estate units Net revenue from units sold ( - ) Cost of units sold Revenue from units sold ( - ) Cost of units sold Other 2,055 (170) 2,637 (12) 2,055 (170) 2,637 (12) Per SCP, SPE or venture (subsidiaries) 6/30/2017 6/30/2016 Revenue and costs of completed real estate units Net revenue from units sold ( - ) Cost of units sold Revenue from units sold ( - ) Cost of units sold Construction services 14,695 (21,867) 1,315 (15,923) Cajueiro Empreendimentos Imobiliários Ltda. 10,293 (17,156) Direcional Porto Acre Empreendimentos Imobiliarios Ltda. 3,833 (4,847) 8,004 (7,798) 88 - Capixaba Empreendimentos Imobiliarios Ltda. 2,475 (1,171) (1,120) 1, Direcional Esmeralda Empreendimentos Imobiliarios Ltda. 2,276 (1,712) 2,919 (2,482) 80 - Direcional Patrimar Maragogi Empreendimentos Imobiliarios Ltda. 2,132 (1,648) 547 (147) 76 - Mar Turmalina Empreendimentos Imobiliarios Ltda. 2,003 (1,970) Direcional Trincheiras Empreendimentos Imobiliários Ltda ,644 (3,382) Other 1,542 (18,354) 7,700 (22,787) 39,249 (68,725) 24,009 (51,000) Net revenue from units sold 6/30/2017 6/30/2016 Revenue from units sold ( - ) Cost of ( - ) Cost of Revenue and costs of units under construction units sold units sold Construction services 130,281 (110,100) 460,493 (351,394) Residencial Florence Park SPE Ltda. 24,503 (15,303) 3,695 (2,658) Genebra Empreendimentos Imobiliários Ltda. 20,979 (13,232) 5,420 (3,105) 17 - Direcional Taguatinga Engenharia Ltda. 16,886 (10,362) 16,730 (11,156) Cristalina Empreendimentos Imobiliários Ltda. 14,850 (10,892) Jequia Empreendimentos Imobiliários Ltda. 11,974 (10,003) 71,311 (47,255) Muqui Empreendimentos Imobiliários SPE Ltda. 10,906 (7,794) Ouro Branco Empreendimentos Imobiliários Ltda. 9,791 (6,663) 21,547 (14,459) Itapetininga Empreendimentos Imobiliários Ltda. 9,592 (7,096) Direcional Zircone Empreendimentos Imobiliários Ltda. 8,596 (18,046) Direcional Rubi Empreendimentos Imobiliários Ltda. 8,183 (4,894) Almeria Empreendimentos Imobiliários Ltda. 6,634 (4,128) 617 (275) Xapuri Empreendimentos Imobiliários Ltda. 6,595 (5,197) Nova Campinas Empreendimentos Imobiliários Ltda. 6,037 (3,056) Carneiros Empreendimentos Imobiliários Ltda. 5,981 (4,287) Mirante Empreendimentos Imobiliários SPE Ltda. 5,730 (3,777) Jardim Amaralina Empreendimentos Imobiliários SPE Ltda. 5,547 (2,777) Arapiraca Empreendimentos Imobiliários Ltda. 5,292 (2,969) Ônix Empreendimentos Imobiliários Ltda. 215 (88) 27,329 (23,550) 98 - Geminiano Projeto 01 Empreendimentos Imobiliários Ltda ,316 (16,044) Direcional Arapiraca Empreendimentos Imobiliários Ltda ,633 (7,264) Lagoa Empreendimentos Imobiliários Ltda ,955 (9,951) 69 - Azeviche Empreendimentos Imobiliários Ltda ,104 (8,679) 62 - Azurita Empreendimentos Imobiliários Ltda ,585 (7,784) Other 31,159 (33,492) 72,558 (77,697) 339,731 (274,156) 762,293 (581,271) 381,035 (343,051) 788,939 (632,283) 57 of 67

62 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 5.73% p.a. The Company also recognized R$ 7,680 as gross revenue (R$ 12,389 at June 30, 2016) 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$ 25,977 and R$ 28,259 were recognized and June 30, 2016, respectively, in the cost of real estate units sold account, in the statement of operations. These financial charges are appropriated to income when sales are realized Costs and expenses by nature The Company opted to present the statement of operations by function. The detailed information on expenses by nature is as follows: Parent company Consolidated Description 6/30/2017 6/30/2016 6/30/2017 6/30/2016 Raw materials and materials for use and consumption (1,638) (530) (276,808) (443,180) Personnel (26,472) (34,929) (69,918) (190,582) Capitalized interest - - (25,977) (28,259) Depreciation and amortization (4,564) (4,732) (12,255) (14,366) Third-party services (5,055) (6,951) (5,554) (7,125) Electricity, water and telephone (723) (737) (762) (759) Selling expenses (1,259) (1,711) (13,407) (11,021) Sales commission (8,546) (11,343) Other expenses (10,498) (6,724) (10,216) (7,091) (50,002) (56,314) (423,443) (713,726) Classified as Cost of real estate sold (170) (3) (211,083) (262,760) Cost of services rendered - (9) (131,968) (369,523) Selling expenses (1,071) (1,711) (25,348) (26,103) General and administrative expenses (48,761) (54,591) (55,044) (55,340) (50,002) (56,314) (423,443) (713,726) 58 of 67

63 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 financial statements, are as follows: 6/30/2017 6/30/2016 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 984,447 (748,921) 1,399,603 (1,073,809) Nova Campinas Empreendimentos Imobiliários Ltda. - 1st phase 70,821 (32,505) 51,445 (22,896) Carneiros Empreendimentos Imobiliários Ltda. - 1st phase 38,163 (26,174) - - Jardim Amaralina Empreendimentos Imobiliários Spe Ltda. - 1st phase 30,246 (14,931) - - Itapetininga Empreendimentos Imobiliários Ltda. - 1st phase 29,620 (19,893) - - Genebra Empreendimentos Imobiliários Ltda. - 1st phase 29,356 (18,145) 32,818 (18,602) Direcional Rubi Empreendimentos Imobiliários Ltda. - 1st phase 21,639 (12,372) - - Almeria Empreendimentos Imobiliários Ltda. - 1st phase 21,063 (12,388) 6,904 (2,938) Residencial Florence Park Spe Ltda. - 1st phase 20,960 (12,069) 33,491 (19,951) Santorini Empreendimentos Imobiliários Ltda. - 1st phase 19,664 (13,021) - - Bella Trindade Empreendimentos Imobiliários Ltda. - 1st phase 17,440 (11,145) - - Campos Verdes Empreendimentos Imobiliários Ltda. - 1st phase 17,393 (10,004) - - Direcional Taguatinga Engenharia Ltda. - 10th phase 16,190 (9,239) 245 (133) Nova Estoril Empreendimentos Imobiliários Ltda. - 1st phase 15,421 (9,395) - - Riacho Branco Empreendimentos Imobiliários Ltda. - 1st phase 13,314 (9,069) - - Cristalina Empreendimentos Imobiliários Ltda. - 1st phase 12,057 (8,476) - - Santa Gisela Empreendimentos Imobiliários Spe Ltda. - 1st phase 10,290 (5,370) - - Novo Oriente Empreendimentos Imobiliários Ltda. - 1st phase 9,787 (6,432) - - Água Marinha Empreendimentos Imobiliários Ltda. - 1st phase 8,475 (5,867) 886 (391) Colina De Santana Empreendimentos Imobiliários Spe Ltda. - 1st phase 8,147 (5,181) 11,308 (6,088) Portal Das Rosas Empreendimentos Imobiliários Ltda. - 1st phase 7,662 (4,767) - - Jupia Empreendimentos Imobiliários Ltda. - 1st phase 7,553 (4,526) - - Xapuri Empreendimentos Imobiliários Ltda. - 1st phase 6,367 (4,733) - - Muqui Empreendimentos Imobiliários Spe Ltda. - 1st phase 4,419 (2,769) 4,964 (1,966) Mirante Empreendimentos Imobiliários Spe Ltda. - 1st phase 3,068 (1,760) 14,630 (8,031) Ouro Branco Empreendimentos Imobiliários Ltda. 11th phase 2,983 (1,811) 375 (205) Arapiraca Empreendimentos Imobiliários Ltda. - 1st phase 626 (295) 10,220 (5,062) Ouro Branco Empreendimentos Imobiliários Ltda. 12nd phase 505 (312) - - Direcional Zircone Empreendimentos Imobiliários Ltda. - 1st phase Jequia Empreendimentos Imobiliários Ltda. - 2nd phase ,643 (25,377) Jequia Empreendimentos Imobiliários Ltda. - 1st phase ,818 (13,580) Direcional Taguatinga Engenharia Ltda. - 11th phase ,455 (11,223) Guarinos Empreendimentos Imobiliários Ltda. - 1st phase ,867 (9,756) Ouro Branco Empreendimentos Imobiliários Ltda. 5th phase - - 5,484 (3,335) Ouro Branco Empreendimentos Imobiliários Ltda. 7th phase - - 4,393 (2,608) Direcional Azeviche Empreendimentos Imobiliários Ltda. - 1st phase - - 3,774 (1,984) Ônix Empreendimentos Imobiliários Ltda. 5th phase - - 3,410 (2,781) Ouro Branco Empreendimentos Imobiliários Ltda. 8th phase - - 2,882 (1,702) Direcional Coruripe Empreendimentos Imobiliários Ltda. - 1st phase - - 2,634 (1,716) Cajueiro Empreendimentos Imobiliários Ltda. - 1st phase - - 2,224 (1,369) Geminiano Projeto 01 Empreendimentos Imobiliários Spe Ltda. 2nd phase (51) 1,427,677 (1,011,570) 1,695,580 (1,235,554) 59 of 67

64 19 Finance income and costs The following balances represent the Company's net revenue from investments, and contractual interest. They also present the finance costs from certain borrowing facilities used by the Company and from account maintenance with financial institutions. Parent company Consolidated Finance income 6/30/2017 6/30/2016 6/30/2017 6/30/2016 Income from financial investments 15,149 17,190 22,536 27,785 Monetary adjustment and contractual interest 1,252 1,537 3,330 3,800 16,401 18,727 25,866 31,585 Finance costs Interest expenses (16,916) (20,586) (17,510) (21,429) Bank expenses (632) (543) (2,290) (3,153) (17,548) (21,129) (19,800) (24,582) Finance result, net (1,147) (2,402) 6,066 7, Income tax and social contribution The composition of income tax and social contribution expenses for the periods ended June 30, 2017 and June 30, 2016 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: 60 of 67

65 Parent company Consolidated 6/30/2017 6/30/2016 6/30/2017 6/30/2016 Profit (loss) before income tax and social contribution (52,507) 51,833 (40,529) 75,600 IRPJ and CSLL at 34% 34% 34% 34% 34% Estimated IRPJ and CSLL (17,852) 17,623 (13,780) 25,704 Entities subject to taxation based on actual taxable income Additions and exclusions 16,571 3, Exclusion - equity in the results of investees - (108,972) - - Taxation base (36,149) (53,153) - - Companies taxed based on deemed profit Taxation base ,098 13,445 Rates applicable to deemed profit 2.28% 2.28% 2.28% 2.28% Tax expenses Deferred tax (121) Companies taxed based on the RET (1%) Taxation base , ,502 Rates applicable to the RET 0.47% 0.47% 0.47% 0.47% Tax expenses - - 2,784 4,560 Deferred tax - - (321) (196) Companies taxed based on the RET (4%) Taxation base , ,490 Rates applicable to the RET 1.92% 1.92% 1.92% 1.92% Tax expenses - - 6,058 7,813 Deferred tax - - (2,143) (450) IRPJ and CSLL expense for the period - - 7,428 12,034 Effective tax rate 0.00% 0.00% % 15.92% 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. 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. 61 of 67

66 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 June 30, 2017 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 requirements. The contractual exposures of financial liabilities are as follows: Consolidated Less than one year Between 1 and 2 years Between two and three years Over three years Total At June 30, 2017 Borrowings (Note 10) 358, , ,207 20, ,323 Trade payables 65,244 7, ,110 Real estate commitments payable (Note 13) 46, , , , ,992 It is not expected that the cash outflows, included in the maturity analyses of the Company and its subsidiaries, will occur significantly sooner or in amounts significantly different. 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. 62 of 67

67 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. Fair value of financial instruments per category The carrying values of trade receivables and payables, less impairment provision in the case of trade receivables, are assumed to approximate their fair values. The table below classifies financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: - Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1). - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2). - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3). The Company and its subsidiaries did not have financial liabilities measured at Level 3. The hierarchy of the assets and liabilities of the Company and its subsidiaries is as follows: Consolidated 6/30/ /31/2016 Level 1 Level 2 Total Level 1 Level 2 Total Loans and receivables Cash and banks 86,017-86,017 51,578-51,578 Trade receivables - 938, ,978-1,088,343 1,088,343 Other receivables - 32,000 32,000-34,102 34,102 86, ,978 1,056,995 51,578 1,122,445 1,174,023 Financial assets at fair value through profit or loss Cash equivalents 355, , , ,157 Financial investments 175, , , , , , ,165 1,274,525 1,773,690 Total financial assets 617, ,978 1,588, ,743 2,396,970 2,947,713 Other financial liabilities Trade payables - 73,110 73, , ,982 Borrowings - 978, , , ,860 Real estate commitments payable - 785, , , ,371 Total financial liabilities - 1,837,425 1,837,425-1,628,213 1,628, of 67

68 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. The positive and negative impacts are as follows: Increase/decrease percentage Business risk management Risk control system June 30, 2017 Effect on profit before taxes -25% % (130) 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. 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. 64 of 67

69 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. Description Consolidated 6/30/ /31/2016 Borrowings 978, ,860 (-) Cash and cash equivalents 442, ,735 (-) Financial investments 175, ,816 Net debt 361, ,309 Equity 1,682,327 1,747,418 Net debt/equity 21.47% 19.42% In the six-month period ended June 30, 2017, the Company had cash generation of R$ 27,579 (R$ 37,979 in 2016). The Company's net debt represented 21.47% of its equity (19.42% at December 31, 2016). Assets pledged as collateral The assets pledged as guarantee for the borrowings and financing are disclosed in Note 9 and Note 10. At June 30, 2017, the Company and its subsidiaries have judicial deposits amounting to R$ 14,121 (December 31, R$ 11,595) that are related to disputes regarding their contingent liabilities. 65 of 67

70 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 5,187,861 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) (1,027,861) (4,160,000) Outstanding options 30,000 12,000 Balance of options to be granted (**) - - (*) The exercise price considers the issue price restated by reference to the Amplified Consumer Price Index (IPCA) until June 30, 2017, as well as an adjustment due to the payment of dividends in the period. (**) The Board of Directors cannot grant new options in Plans 1 or 2 since the effective term expired on December 31, 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 0.03%. 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, of 67

71 The Board of Directors' Meeting held on March 20, 2017 approved the regulations of the second incentive program linked to shares of Direcional Engenharia S.A. ("Matching Program"). The Programs establish 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 1st Matching Program, the Company will grant two common shares of the Company to the Beneficiaries; in the 2nd Matching Program, five common shares of the Company will be granted to the Beneficiaries. 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. The numbers of shares granted, vesting and exercise periods, approved by the Board of Directors, are shown below: 1st Matching Program 2nd Matching Program Grant year Term for the transfer of shares 4 years, 25% per year, as from December 31, years, 25% per year, as from December 31, 2017 Changes in shares granted Total shares granted (A) 506,000 1,760,000 Grants available for the acquisition of shares 444,800 1,760,000 Grants unavailable for the acquisition of shares (B) 61,200 - Cancelled grants (C) 81,644 - Shares delivered to the Beneficiaries (D) 106,806 - Outstanding grants (A) - (B) - (C) - (D) 256,350 1,760,000 The fair value of the most recent shares granted was calculated based on the price of the related assets, taking into consideration the quotation on the granting date, since there is no exercise price. In the six-month period ended June 30, 2017, the amount of R$ 1,926 was recorded as a provision. The future expense to be recognized in relation to the program over the next 42 months totals R$ 7,767 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 1.38%. * * * 67 of 67

72 DISCLOSURE OF RESULTS