Quarterly Information Direcional Engenharia S.A. March 31, 2012 with Independent Auditor s Review Report

Transcrição

1 Quarterly Information Direcional Engenharia S.A. with Independent Auditor s Review Report

2 Quarterly Information Contents Report of quarterly information... 1 Quarterly information Balance Sheet... 3 Income Statement... 5 Statement of Changes in Equity... 6 Cash flow Statement... 7 Statements of Value Added... 8 Notes to Quarterly Information... 9

3 Edifício Phelps Offices Tower Rua Antonio de Albuquerque, º andar - Savassi Belo Horizonte, MG, Brazil Phone: (5531) Fax: (5531) A free translation from Portuguese into English of Independent Auditor's Review Report on quarterly review statements in accordance with accounting practices adopted in Brazil and on consolidated financial statements in accordance with IFRS and also with accounting practices adopted in Brazil Independent auditor s review report on Quarterly Information Board of Directors and Shareholders of Direcional Engenharia S.A. Belo Horizonte - MG Introduction We have reviewed the accompanying individual and consolidated quarterly information of Direcional Engenharia S.A. for the quarter ended, which comprise the balance sheet and the related income statement, statement of changes in equity and cash flow statement for the quarter then ended, including explanatory information. Management is responsible for the preparation and fair presentation of the individual and consolidated quarterly information in accordance with CPC 21 - Interim Financial Reporting and the consolidated interim financial information in accordance with CPC 21 and IAS 34 - Interim Financial Reporting, including Guidance OCPC 04 -Application of Technical Interpretation ICPC 02 to brazilian real estate development entities, issued by the Brazilian FASB (CPC) and approved by the Brazilian Securities and Exchange Commission (CVM) and the Brazilian Professional Accounting Body (CFC), as well as for the presentation of this information consistently with standards issued by the CVM, applicable to the preparation of Quarterly Information. Our responsibility is to express a conclusion on this quarterly information based on our review. Scope of review We conducted our review in accordance with Brazilian and International Standards on Review Engagements NBC TR Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of quarterly 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 auditing standards 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. Ernst & Young Terco 1

4 Opinion on the individual and consolidated quarterly information prepared in accordance with CPC 21 Based on our review, nothing has come to our attention that causes us to believe that the individual and consolidated financial information included in the quarterly information referred to above is not fairly presented, in all material respects, in accordance with CPC 21 applicable to the preparation of the Quarterly Information, and presented consistently with the standards issued by the Brazilian Securities and Exchange Commission (CVM). Opinion on the consolidated quarterly information prepared in accordance with IAS 34, including Guidance OCPC 04 Application of Technical Interpretation ICPC 02 to Brazilian Real Estate Development Entities, issued by the Brazilian FASB (CPC) and approved by the CVM and CFC. Based on our review, nothing has come to our attention that causes us to believe that the consolidated financial information included in the quarterly information referred to above is not fairly presented, in all material respects, in accordance with IAS 34, including Guidance OCPC 04 Application of Technical Interpretation ICPC 02 to Brazilian Real Estate Development Entities, issued by the Brazilian FASB (CPC) and approved by the CVM and CFC, applicable to the preparation of the Quarterly Information (ITR), and presented consistently with standards issued by the CVM. Emphasis of a matter As described in Note 2, the individual and consolidated financial information were prepared in accordance with accounting practices adopted in Brazil. The consolidated financial information prepared in accordance with IAS 34, additionally considers Guidance OCPC 04 issued by the Brazilian FASB (CPC), which addresses revenue recognition for this industry and involves matters related to the meaning and application of the concept of continuous transfer of risks, rewards and control on sale of real estate units as described in Note 2. Our review report on Quarterly Information is not qualified in respect of this matter. Ernst & Young Terco 2

5 Other matters Statements of value added We also reviewed the individual and consolidated statements of value added (SVA), for the three-month period ended, prepared under Company management responsibility, whose presentation is required by Brazilian corporation law for publiclytraded companies and as supplementary information under IFRS, which do not require SVA presentation. These statements were submitted to the same review procedures previously described and, based on our review, we are not aware of any fact that would make us believe that they were not prepared, in all material respects, in accordance with the overall individual and consolidated quarterly information. Belo Horizonte, May 14, ERNST & YOUNG TERCO Auditores Independentes S.S. CRC 2SP015199/O-6 Antonio C. M. Lage Accountant Ernst & Young Terco 3

6 Balance Sheets and December 31, 2011 (In thousands of Reais) Company Consolidated Note 3/31/ /31/2011 3/31/ /31/2011 Current assets Cash and cash equivalents 3 112, , , ,112 Accounts receivable - real estate development 4 3,077 4, , ,010 Accounts receivable - services rendered , ,139 Land to be developed , ,300 Completed real estate units ,519 43,898 Real estate units under construction , ,346 Related parties ,626 47,912 39,881 37,560 Taxes recoverable - 10,801 10,305 12,099 11,085 Prepaid commercial expenses ,817 2,233 Other credits - 14,218 13,106 45,041 44,875 Total current assets 185, ,197 2,033,062 1,913,558 Non-current assets Accounts receivable real estate development , ,245 Land to be developed ,680 29, , ,801 Related parties ,413 34,756 39,413 34,756 Other credits - 1,073 8,770 22,166 14,701 71,251 73, , ,503 Investments 7 1,086,216 1,014, Property and equipment 8 25,406 24,178 46,116 45,662 Intangible assets - 1,963 2,003 2,164 2,190 1,113,585 1,041,141 48,280 47,852 Total non-current assets 1,184,836 1,114, , ,355 Total assets 1,370,058 1,313,947 2,616,001 2,451,913 Ernst & Young Terco 4

7 Company Consolidated Note 3/31/ /31/2011 3/31/ /31/2011 Current liabilities Loans and financing 9 4,462 4, , ,903 Trade accounts payable - 1,877 1,056 41,102 42,766 Labor liabilities 10 12,505 9,679 42,258 34,942 Tax liabilities ,408 58,547 Real estate commitments payable ,288 32,848 Advance from customers ,352 74,715 Proposed dividends ,614 41,614 42,087 42,346 Trade accounts payable 14 20,617 23,124 81,466 91,337 Related parties ,490 29,490 17,193 8,960 Total current liabilities 111, , , ,364 Non-current liabilities Loans and financing 9 29,319 28, , ,249 Provision for guarantees ,943 12,555 Tax liabilities ,919 14,632 Real estate commitments payable , ,666 Advance from customers , ,393 Provision for tax, civil and laborcontingencies ,570 4,549 Trade accounts payable 14 17,022 17,022 17,022 17,022 Total non-current liabilities 47,137 46, , ,066 Equity Commom Stock , , , ,686 Capital reserve , , , ,598 Treasury stocks (15,846) (15,846) (15,846) (15,846) Income reserve , , , ,344 Income for the period 51,133-51,133-1,211,686 1,156,782 1,211,686 1,156,782 Interest in SCPs and SPEs ,082 75,701 Total equity 1,211,686 1,156,782 1,297,768 1,232,483 Total liabilities and equity 1,370,058 1,313,947 2,616,001 2,451,913 See accompanying notes to quarterly information. Ernst & Young Terco 5

8 Income statements and March 31, 2011 (In thousands of Reais) Company Consolidated Note 3/31/2012 3/31/2011 3/31/2012 3/31/2011 Net operating revenue , , ,043 Cost of real estate sold (165,806) (128,235) Cost of services rendered (74,036) (40,204) Cost of real estate sold and services rendered (239,842) (168,439) Gross profit 819 1,772 87,655 65,604 Operating income (expenses): General and administrative expenses 17.3 (25,715) (24,691) (27,148) (27,259) Selling expenses 17.3 (1,480) - (8,588) (4,997) Equity income 7 72,026 48, Other operating income and expenses , ,595 45,150 32,104 (35,180) (26,661) Financial income (expenses) Financial expenses 18 (1,377) (1,362) (2,575) (1,905) Financial income 18 6,541 7,166 10,908 8,582 5,164 5,804 8,333 6,677 Income before income and social contribution taxes 51,133 39,680 60,808 45,620 Income and social contribution taxes (8,174) (4,626) Net income for the year 51,133 39,680 52,634 40,994 Net income attributable to: Noncontrolling shareholders in SPEs and SCPs (1,501) (1,314) Net income attributable to: Direcional Engenharia S.A. 51,133 39,680 51,133 39,680 Earnings per share Base Diluted See accompanying notes to quarterly information. Ernst & Young Terco 6

9 Statement of changes in equity and March 31, 2011 (In thousands of Reais) Note Commo n stock Treasury shares Capital reserves Issue of shares Stock options granted Legal reserve Income reserves Retained profits For investment Retained earnings Equity - company Noncontrolling shareholders Equity - Consolidated Balances at December 31, , ,489 9,850 16, ,952 56, ,477 34, ,855 Capital increase from public offering of shares ,600-57, , ,800 Expenses with public offering of shares - - (4,961) (4,961) - (4,961) Equity instruments - share-based payments ,194-9, ,044-11,044 Noncontrolling shareholders ,168 3,168 Net income for the year ,680 39,680 1,314 40,994 Balances at March 31, , ,728 11,044 16, ,802 56,355 39,680 1,068,040 38,860 1,106,900 Balances at December 31, ,686 (15,846) 241,165 23,433 25, ,644 56,355-1,156,782 75,701 1,232,483 Capital increase from stock options granted Stock options granted and recognized , ,299-3,299 Capital reduction - noncontrolling shareholders ,880 8,880 Net income for the year ,133 51,133 1,501 52,634 Investment reserve Balances at 497,158 (15,846) 241,165 26,732 25, ,644 56,355 51,133 1,211,686 86,082 1,297,768 See accompanying notes to quarterly information. Ernst & Young Terco 7

10 Cash flow statements and March 31, 2011 (In thousands of Reais) Company Consolidated 3/31/2012 3/31/2011 3/31/2012 3/31/2011 From operating activities Income before income and social contribution taxes 51,133 39,680 60,808 45,620 Adjustments to reconcile income with cash provided by operating activities: Depreciation and amortization ,898 1,318 Equity investments (72,026) (48,377) - - Provision for guarantees (32) (2) (1,612) (139) Interest on loans and financing 1,285-11,140 - Provision for tax, civil and labor contingencies (26) Income from barter transactions - - (25,452) (7,006) Taxes - - 7,125 2,294 Net present value adjustment - accounts receivable - - 6,721 (734) Provision for stock option plan 3,299 11,044 3,299 11,044 Reversed provision (1,637) (2,359) (1,674) (4,012) Other 2,544-3,767 - Increase (decrease) in assets Trade accounts receivable 2,860 5,454 (118,896) (75,400) Inventories (804) 4, (54,584) Other receivables 6,585 (5,549) (7,631) (12,550) Transactions with related parties (371) (5,083) (6,978) (2,134) Taxes recoverable (496) - (1,014) - Prepaid commercial expenses - (540) (Decrease) increase in liabilities Trade accounts payable (1,664) 8,725 Labor liabilities 282 (2,625) 3, Tax liabilities 154 (45) (5,886) (1,553) Real estate commitments payable , Advance from customers - - (81) 24,250 Accounts payable (2,507) 125 (9,871) 7,040 Transactions with related parties - 8,233 Cash used in operating activities (8,304) (2,485) (57,916) (56,573) Income and social contribution taxes paid - - (4,265) (4,626) Net cash used in operating activities (8,304) (2,485) (62,181) (61,199) Cash flow from investing activities Increase in investments (SPCs and SPEs) (9,771) (59,009) - - Increase (decrease) in property and equipment (1,820) (204) (4,326) (1,907) Increase in intangible assets - (294) - (275) Dividends received 10,541 13, Net cash used in investing activities (1,050) (46,007) (4,326) (2,182) Cash flow from financing activities Payment of capital, net of expenditures , ,839 Treasury shares Dividends paid - (40,272) (259) (40,272) Loans taken out 1,497 2, ,524 48,447 Amortization of loans (1,346) - (29,812) - Interest paid (1,465) (1,261) (14,322) (7,243) Payment of capital - noncontrolling shareholders - - 8,880 3,168 Net cash generated by financing activities (842) 184,468 79, ,939 Net increase (decrease) in cash and cash equivalents (10,196) 135,976 12, ,558 Cash and cash equivalents At the beginning of the period 122, , , ,852 At the end of the period 112, , , ,409 See accompanying notes to quarterly information. Ernst & Young Terco 8

11 Statements of value added and March 31, 2011 (In thousands of Reais) Company Consolidated 3/31/2012 3/31/2011 3/31/2012 3/31/2011 Revenue Real estate sold and services rendered 1,290 1, , ,961 Other 319 8, ,761 Allowance for doubtful accounts (addition) reversal 1, , ,246 10, , ,815 Inputs acquired from third parties Raw materials used (241,180) (84,220) Materials, energy, third-party services and other expenses (11,300) (18,670) (8,520) (67,376) Other (3,117) (21) (9,239) (15,351) (14,306) (18,691) (258,939) (166,947) Gross value added (11,060) (7,836) 82,660 80,686 Depreciation and amortization, net (632) (608) (3,872) (2,303) Net value added produced by the Company (11,692) (8,444) 78,788 78,565 Value added received in transfer Equity investments 72,026 48, Financial income 6,541 7,166 10,908 8,582 78,567 55,543 10,908 8,582 Total value added to be distributed 66,875 47,099 89,696 87,147 Distribution of value added Personnel 13,783 5,934 14,404 27,531 Taxes, charges and contributions ,083 6,806 Debt interest 1,377 1,361 2,575 11,816 Retained profits 51,133 39,680 51,133 39,680 Net income attributable to non-controlling shareholders - 1,501 1,314 66,875 47,099 89,696 87,147 See accompanying notes to quarterly information. Ernst & Young Terco 9

12 Notes to quarterly information (Amounts expressed in thousands of reais, except where otherwise indicated) 1. Operations Direcional Engenharia S.A. ( Direcional or Company ) is a publicly traded Company organized under the Brazilian corporation laws. Direcional shares are traded at BM&F BOVESPA under the ticker symbol DIRR3. The Company is domiciled in Brazil and headquartered at Rua Grão Pará, 466, Belo Horizonte, in Minas Gerais (MG) State. Direcional is a real estate development and construction company engaged in developing large low-income-oriented projects, primarily focused on the northern and mid-western regions of the State of Minas Gerais. Over its 31 years experience in developing and building low-income-oriented projects, the Company established a verticalized structure and a standardized construction process, which has allowed the construction of large-scale projects. The Company carries out its development and construction activities through Silent Partnerships (SCPs) and Special Purpose Entities (SPEs) used in the normal course of business as a way to enable the establishment of partnerships, allowing it to follow up on projects individually, ease obtainment of financing lines for production as well as financial accounting control. Both SCPs and SPEs are exclusively engaged in the real estate sector and, in most cases, associated with a specific venture. Public offering of shares On February 9, 2011, the Company completed its public offering of primary and secondary distribution of shares, comprising the issue of (i) 20.8 million common registered book-entry shares with no par value (Primary Offering), (ii) secondary distribution of 7.2 million common registered book-entry shares with no par value held by the Selling Shareholders, free and clear of any liens or encumbrances (Secondary Offering), totaling 28 million of shares. The share unit price was R$11.00, totaling R$308,000 gross. In this regard, the net proceeds of commissions and certain fees related to the Primary Offering (in the amount of R$7,524) flowing into the Company totaled R$221,278. Company ownership structure is as follows: Number of outstanding shares and percentages Shareholders Shares (%) Filadélphia Participações S.A. 72,469, % Funds managed by Tarpon Investimentos 23,175, % GIC Government of Singapore 10,840, % Ridgecrest LLC 10,653, % Managing officers 1,865, % Other 34,634, % Total 153,638, % Ernst & Young Terco 10

13 (Amounts expressed in thousands of reais, except where otherwise indicated) 2. Presentation of the quarterly information and summary of significant accounting practices The individual and consolidated quarterly information for the three-month period ended was prepared in accordance with accounting practices adopted in Brazil, which comprise the rules set forth by the Brazilian SEC (CVM) and the pronouncements, interpretations and guidance issued by the Brazilian FASB (CPC). Additionally, the consolidated quarterly information was also prepared in accordance with the rules set forth by the International Financial Reporting Standards (IFRS) applicable to real estate development entities in Brazil, as approved by the CPC, the CVM and Brazil s National Association of State Boards of Accountancy (CFC), including Guidance OCPC 04 - Application of Technical Interpretation ICPC 02 to Brazilian Real Estate Development Entities - relating to revenue recognition and related costs and expenses from real estate operations in the course of the works (percentage of completion method - POC). Certain issues related to the meaning and application of the concept of continuous transfer of risks, rewards and control on sale of real estate units will be analyzed by the International Financial Reporting Interpretations Committee (IFRIC). The result of this analysis may result in the review of the Company s accounting practices related to revenue recognition. The quarterly information was prepared following the principles, practices and criteria consistently with those adopted in the preparation of the financial statements at December 31, 2011; therefore, they should be read together. The preparation of the quarterly information was in compliance with CVM SEP/SNC Circular Letter No. 003/2011 and guidance from Technical Pronouncement CPC 21 - Interim Financial Reporting. The explanatory note information that did not suffer material changes compared with December 31, 2011 is not disclosed in this quarterly information. At May 14, 2012, the Company s management approved the quarterly information and authorized its disclosure. Ernst & Young Terco 11

14 (Amounts expressed in thousands of reais, except where otherwise indicated) 2. Presentation of the quarterly information and summary of significant accounting practices (Continued) 2.1 New IFRS and IFRIC interpretations (International Accounting Standards Board - IASB) New IASB pronouncements were published and are described as follows: IFRS 9 Financial Instruments Classification and Measurement - IFRS 9 Financial Instruments completes the first part of project to replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 uses a simple approach to determine whether a financial asset is measured at amortized cost or fair value. The new approach is based on how the entity manages its financial instruments (its business model) and the contractual cash flow characteristics of the financial assets. The standard also requires the adoption of a single approach to determine impairment loss. This standard is effective for annual periods beginning on or after January 1, IFRS 10 Consolidated Financial Statements - IFRS 10 establishes principles for presentation and preparation of consolidated financial statements when an entity controls one or more entities. The IFRS 10 replaces the consolidation requirements of SIC-12 Consolidation of Special Purpose Entities and IAS 27 Consolidated and Separate Financial Statements, and is effective for annual periods beginning on or after January 1, IFRS 11 Joint Arrangements - IFRS 11 provides for a more realistic approach to joint arrangements, focusing on their rights and obligations, rather than on their legal business form. The standard addresses inconsistencies in the treatment to joint arrangements, and requires application of a single method to address jointly controlled entities, through equity pickup. IFRS 13 superseded IAS 31 - Interests in Joint Ventures and SIC-13 - Jointly-Controlled Entities - Non-Monetary Contributions by Venturers, and is applicable to annual reporting periods beginning on or after January 1, IFRS 12 Disclosures of Interests in Other Entities - This new comprehensive standard is to require the disclosure of information about all types of interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured entities. IFRS 12 is applicable to annual reporting periods beginning on or after January 1, IFRS 13 Fair Value Measurement - IFRS 13 sets forth new fair value measurement requirements and related disclosures under IFRS. The standard is applicable to annual reporting periods beginning on or after January 1, Ernst & Young Terco 12

15 (Amounts expressed in thousands of reais, except where otherwise indicated) 2. Presentation of the quarterly information and summary of significant accounting practices (Continued) 2.1 New IFRS and IFRIC interpretations (International Accounting Standards Board - IASB) - Continued The Company is assessing the impact of these new pronouncements on its consolidated financial statements. There are no other standards and interpretations issued but not yet adopted that may, in the opinion of management, significantly impact the Company s disclosed P&L or equity. 3. Cash and cash equivalents Company Consolidated 3/31/ /31/2011 3/31/ /31/2011 Cash and banks ,917 83,763 Short-term investments 111, , , , , , , ,112 Company investments are made through exclusive investment funds or in transactions directly performed with first-tier financial institutions. Company policy consists of investing its resources in funds or directly in conservative, highly liquid financial instruments. The yields on these investments are tied to the Interbank Deposit Certificate (CDI), ranging from 100% to 104.2% of CDI, according to the nature and timing of each instrument. At March 31, the average annual profitability of Company financial investments corresponded to % of CDI. Ernst & Young Terco 13

16 (Amounts expressed in thousands of reais, except where otherwise indicated) 4. Trade accounts receivable Company Consolidated 3/31/ /31/2011 3/31/ /31/2011 Accounts receivable real estate development (a) Units completed 3,162 6, , ,637 Units not completed , ,393 (-) Net present value adjustment - - (37,811) (31,090) (-) Discount for bond securitization - (37) (12) (49) (-) Allowance for doubtful accounts - (1,637) - (1,636) 3,162 4,414 1,138,479 1,044,255 Current portion 3,077 4, , ,010 Non-current portion , ,245 Accounts receivable - services rendered Real estate intermediation - - 3,290 2,981 Construction management Firm-price construction contract , , , ,139 (a) As a result of the revenue recognition criteria, the balance of trade accounts receivable from units sold and not completed is not fully reflected in the financial statements, since its recording is limited to the revenue portion accounted for, net of installments already received. Note 16.4 presents the balances receivable not recognized in the financial statements. At and December 31, 2011, the consolidated balance of trade accounts receivable is presented net of present value adjustment in the amounts of R$37,811 and R$31,090, respectively. The Company calculated the net present value of trade accounts receivable for units not completed and accounted for the respective amount under the criteria described in CPC 12.The average annual discount rate of 7.0% was applied, which corresponds to the Company s weighted average funding cost, net of inflation. Trade accounts receivable from real estate sales are restated according to the Civil Construction National Index (INCC) variation until the keys are handed over. After the keys are handed over, these amounts are restated by the General Market Price Index (IGPM) and bear interest of 12% p.a. Ernst & Young Terco 14

17 (Amounts expressed in thousands of reais, except where otherwise indicated) 4. Trade accounts receivable (Continued) At and December 31, 2011, trade accounts receivable relating to real estate development and service rendering, which are recorded in current assets, mature as follows: Consolidated 3/31/ /31/2011 Receipt due 2 nd quarter/ , ,887 3 rd quarter/ , ,082 4 th quarter/ ,624 70,076 1 s t quarter/ , ,628 1,012, ,673 Overdue From 0 to 30 days 5,170 23,849 From 31 to 60 days 6,031 1,075 From 61 to 90 days 1, From 91 to 120 days 4, From 121 to 150 days 1,243 2,102 From 151 to 180 days Above 180 days 13,474 5,685 32,494 33,476 Total current assets 1,045, ,149 Detailed information on accounts receivable due, recorded as non-current at March 31, 2012 and December 31, 2011 is as follows: Year Until December/ Until December/ , ,316 Until December/ ,280 17,592 Until December/2015 8,000 8,589 After December/ ,994 22,748 Total 225, ,245 Ernst & Young Terco 15

18 (Amounts expressed in thousands of reais, except where otherwise indicated) 5. Real estate for sale This refers to land to be developed, completed real estate units and real estate units under construction, as under: 5.1. Land to be developed Per venture (Company) 3/31/ /31/2011 Land unit Vicente Pires - Taguatinga/DF 28,816 28,124 Land unit Valparaiso Serra/ES Land unit Porto Velho/RO 1,030 1,030 30,680 29,988 Per SCP, SPE or venture (Subsidiaries) Direcional Água Branca Empreendimentos Imobiliários Ltda 27,602 29,649 Direcional Água Marinha Empreendimentos Imobiliários Ltda 24,587 26,757 Direcional Taguatinga Engenharia Ltda. (a) 27,394 23,598 Direcional Santo Antônio Empreendimentos Imobiliários Ltda (a) 23,606 23,226 Direcional Alegre Empreendimentos Imobiliários Ltda 15,243 22,380 Direcional Safira Empreendimentos imobiliários Ltda (a) 16,778 18,899 Direcional Agua das Flores Empreendimentos Imobiliários Ltda 17,125 17,125 Direcional Arapiraca Empreendimentos Imobiliários Ltda 14,708 16,320 Direcional Sena Madureira Empreendimentos Imobiliários Ltda 15,495 16,190 Direcional Construtora Valparaíso Ltda. 15,523 15,505 Direcional Carneiros Empreendimentos Imobiliários Ltda 6,985 13,908 Direcional Santa Rosa Empreendimentos Imobiliários Ltda 16,259 13,359 Direcional Xapuri Empreendimentos Imobiliários Ltda 14,148 13,134 Direcional Coruripe Empreendimentos Imobiliários Ltda 12,382 12,382 Direcional Turquesa Empreendimentos Imobiliários Ltda 12,252 12,252 Direcional Azurita Empreendimentos imobiliários Ltda (a) 11,937 11,937 Arinos Empreendimentos Imobiliários Ltda 10,591 10,591 Citrino Empreendimentos Imobiliários Ltda 9,931 9,932 Direcional Âmbar Empreendimentos imobiliários Ltda (a) 9,836 9,836 Direcional Leopoldina Empreendimentos Imobiliários Ltda 9,675 9,675 Direcional Diamante Empreendimentos imobiliários Ltda (a) 9,359 9,359 Coral Empreendimentos imobiliários Ltda 8,466 8,466 Direcional Riachos Empreendimentos Imobiliários Ltda 8,222 8,222 Direcional Rubi Empreendimentos imobiliários Ltda (a) 8,214 8,214 Direcional Trincheiras Empreendimentos Imobiliários Ltda (a) 8,025 7,919 Ônix Empreendimentos Imobiliários Ltda (a) 6,533 7,622 SPE 66 - Bom Sucesso Incorporação e Investimentos Imobiliários S.A. 7,566 7,560 Direcional Malaquita Empreendimentos imobiliários Ltda 7,386 7,386 Direcional Cajueiro Empreendimentos Imobiliários Ltda 7,336 7,336 Direcional Igaci Empreendimentos Imobiliários Ltda 7,174 7,174 Direcional São Miguel Empreendimentos Imobiliários Ltda 6,198 6,198 Direcional Anadia Empreendimentos Imobiliários Ltda 7,361 6,122 Seabra Empreendimentos imobiliários Ltda 5,731 5,731 Direcional Campinas Engenharia Ltda. 5,409 5,409 Geminiano Projeto 01 Empreendimentos Imobiliários Ltda 4,592 4,378 Direcional Rio Branco Empreendimentos Imobiliários Ltda 18,902 4,175 Direcional Feijó Empreendimentos imobiliários Ltda 3,817 3,817 SPE 70 - Santa Margarida Empreendimentos imobiliários Ltda (a) 3,695 3,445 Other 16,004 15, , , , ,101 Ernst & Young Terco 16

19 (Amounts expressed in thousands of reais, except where otherwise indicated) 5. Properties for sale (Continued) 5.1. Land to be developed Company Consolidated Description 3/31/ /31/2011 3/31/ /31/2011 Current portion , ,300 Non-current portion 30,680 29, , ,801 30,680 29, , ,101 (a) The development of these land units by the Company will be carried out in phases; as such, this balance represents the amount of the remaining phases of the ventures yet to be developed Completed real estate units Per venture (Company) 3/31/ /31/2011 Units Completed Solares Other Per SCP, SPE or venture (Subsidiaries) Direcional Construtora Valparaíso Ltda. 11,313 10,014 SCP - Direcional/DAN/Gontijo Fernandes Jacundá 8,569 9,846 Capela Empreendimentos Imobiliários Ltda - 8,310 Direcional Âmbar Empreendimentos imobiliários Ltda 4,815 3,951 SCP - Direcional/ACR Lago 1,855 2,298 SCP - Direcional/ASCC/Diedro-Eliza Miranda 985 1,839 SCP - Direcional/ACR Paradiso 1,085 1,814 SCP 15 - Aterpa - Rio de Janeiro 1,254 1,379 Direcional TSC Rio Madeira Empreendimentos Imobiliários Ltda 919 1,374 SCP - Direcional/ACR - Gran Riserva SPE - Rubelita Empreendimentos imobiliários Ltda Ernane Agricola Empreendimentos imobiliários Ltda SCP - Direcional/Eólica - Retiro dos Artistas SCP 17 - V. Gontijo Split-off Other ,792 43,283 32,519 43,898 Ernst & Young Terco 17

20 (Amounts expressed in thousands of reais, except where otherwise indicated) 5. Properties for sale (Continued) 5.3. Real estate units under construction SCP, SPE or venture 3/31/ /31/2011 Zircone Empreendimentos imobiliários Ltda (a) 44,486 40,591 Direcional Âmbar Empreendimentos imobiliários Ltda 18,954 16,625 Direcional Diamante Empreendimentos imobiliários Ltda 19,267 14,899 Flourita Empreendimentos Imobiliários Ltda 13,385 13,280 Ônix Empreendimentos Imobiliários Ltda 19,106 13,131 Jonasa Empreendimentos Imobiliários Ltda. 14,600 12,830 Direcional Tarauaca Empreendimentos Imobiliários Ltda 11,929 11,872 Direcional Safira Empreendimentos imobiliários Ltda 14,427 10,710 Direcional Ametista Empreendimentos imobiliários Ltda 8,026 9,051 Direcional Rubi Empreendimentos imobiliários Ltda 7,566 8,929 Direcional TSC Jamari Empreendimentos imobiliários Ltda 9,066 8,592 Direcional Taguatinga Engenharia Ltda. 10,947 8,194 Direcional Trincheiras Empreendimentos Imobiliários Ltda 4,761 6,773 Direcional Porto Acre Empreendimentos imobiliários Ltda 5,982 5,887 Direcional TSC Jatuarana Empreendimentos imobiliários Ltda 3,710 4,790 Direcional Palmeira Empreendimentos Imobiliários Ltda 6,315 - Direcional Abaré Empreendimentos Imobiliários Ltda 5,861 4,408 Andrade Valladares Residencial Ltda - SCP Floramar 2,545 3,485 SPE 80 - Direcional Brasileia Empreendimentos imobiliários Ltda 3,112 3,393 Direcional Azurita Empreendimentos imobiliários Ltda 2,691 3,129 SPE 31 - Direcional Silvestre Ltda 2,878 3,031 SCP - Direcional/ASCC/Diedro-Eliza Miranda 2,662 2,608 Alexandrita Empreendimentos imobiliários Ltda 2,664 2,572 Seabra Empreendimentos imobiliários 2,304 2,095 Direcional Patrimar Maragogi Empreendimentos imobiliários Ltda 1,614 1,352 Direcional Opala Empreendimentos imobiliários Ltda 2,221 1,043 Direcional Esmeralda Empreendimentos imobiliários Ltda 1, Other 5,601 2, , ,346 (a) On August 9, 2011, the Company acquired 60% of the units of interest of Direcional Zircone Empreendimento Imobiliários Ltda. ( Zircone Empreendimentos ) from JHSF Participações S.A. for R$37,000, payable in 38 installments indexed by the INCC. After this acquisition, the Company now holds 100% of the venture. The acquisition amount was recorded at its net present value of R$ 27,909. Since this referred to acquisition of a sole finite-lived project at its initial stage, this transaction was treated as an asset purchase Capitalized interest Interest paid referring to production financing is accounted for as Real estate under construction and Completed real estate in accordance with OCPC 01, and charged to P&L when real estate is sold. At, interests amounting to R$5,573 (R$4,498 for the year ended December 31, 2011) were capitalized in the inventory accounts. The average annual rate used for interest capitalization was 10.79% in 2012 (10.92% for the year ended December 31, 2011). Ernst & Young Terco 18

21 (Amounts expressed in thousands of reais, except where otherwise indicated) 6. Transactions with related parties 6.1. Related companies Company Consolidated Assets 3/31/ /31/2011 3/31/ /31/2011 Credits - partners in projects (a) Tsc Engenharia Ltda 27,132 24,213 27,255 24,337 Comim Construtora Ltda ,405 19,343 Dam Incorporações Ltda 6,482 5,641 6,483 5,641 Ager Incorporações Imobiliárias Ltda 5,764 4,334 5,764 4,334 Siena Participações Ltda - - 1,901 1,752 L/V Consultoria Empresarial Ltda - - 1,901 1,752 Edifica Empreendimento Arq. E Engenharia S/A - - 3,322 1,740 Other 2,214 1,741 4,908 4,216 41,592 35,929 74,939 63,115 Conta corrente com empreendimentos (b) Scp Manaus - Eliza Miranda - 3,796-2,278 Zircone Empreendimentos Imob.Ltda 1,678 1,678 1,678 1,678 Santa Margarida 1,486 1,486-1,486 Direcional Opala Empreendimentos Ltda 1,058 1,058-1,058 Seabra Empreendimentos Imobiliarios Ltda 19,783 17,876 1, SCP Meu Orgulho Infra 1,468 1, SCP Parque Prado 4,358 4, SCP Paradiso 9,888 10, SCP Santa Mônica 1,215 3, Other ,504 1,879 41,447 46,739 4,355 9,201 83,039 82,668 79,294 72,316 Current portion 43,626 47,912 39,881 37,560 Non-current portion 39,413 34,756 39,413 34,756 Ernst & Young Terco 19

22 (Amounts expressed in thousands of reais, except where otherwise indicated) 6. Transactions with related parties (Continued) 6.1. Related companies (Continued) Company Consolidated Liabilities 3/31/ /31/2011 3/31/ /31/2011 Liabilities - partners in projects (a) Edifica Empreendimento Arq. E Engenharia S/A - - 1,794 1,794 Cac Engenharia Ltda Other ,931 2,708 Current account projects (b) Direcional Engenharia S.A. - Scp Club House - - 4,409 4,358 Direcional Opala Empreendimentos imobiliários Ltda - - 1,058 SCP Alterosa 2,585 2,585 - Seabra - Consorcio Total Ville 2,180 2,180 - Direcional Agua Branca Empreend. imobiliários Ltda 17,225 17,225 - Direcional Estrela Empreend. imobiliários Ltda 7,000 7,000 - Jonasa Empreendimentos Imobiliários Ltda ,389 - Direcional Rubi Empreendimentos Imobiliários Ltda - - 3,838 - SCP - Direcional/DAN/Gontijo Fernandes - Jacundá - - 1,380 - Other , ,490 29,490 14,262 6,252 Current liabilities 29,490 29,490 17,193 8,960 (a) Credits - partners in projects The Company carries out loans agreements with venture partners, usually noncontrolling shareholders of referred to SPEs. These transactions are settled upon completion of the construction. Such transactions are indexed by CDI average plus 4% p.a. The financial impact on the Company for the period ended was a net financial income of R$2,262 (R$439 at March 31, 2011). (b) Current account projects Such non-interest bearing operations are exclusively intended for contributing funds to construction. These agreements are currently under negotiation with partners. Ernst & Young Terco 20

23 (Amounts expressed in thousands of reais, except where otherwise indicated) 6. Transactions with related parties (Continued) 6.2. Key management personnel compensation Total annual compensation provided to managing officers and directors in 2011 and approved for year 2012 is as follows: 2012 Board of Directors Statutory Board Total Number of members Annual fixed compensation (R$) 480,000 2,220,000 2,700,000 Floating remuneration (R$) - 4,260,000 4,260, ,000 6,480,000 6,960, Board of Directors Statutory Board Total Number of members Annual fixed compensation (R$) 167,520 1,812,000 1,979,520 Floating remuneration (R$) - 1,608,450 1,608, ,520 3,420,450 3,587,970 The Company also provides its managing officers with a stock option plan, which is described in Note 21. The Company offers no private pension plans, retirement plans or postemployment benefits. Ernst & Young Terco 21

24 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) Changes in investments for the period ended are as under: Balance at the beginning of the period Capital increase (decrease)/fcc Balance at the end of the period Company Ownership interest % Dividends/ amortization Equity investments Alexandrita Empreendimentos imobiliários Ltda (a) 50.00% 4,580 - (670) 400 4,310 Altana Empreendimentos imobiliários Ltda % Andaraí Empreendimentos Imobiliários Ltda 99.90% 13, ,052 Andrade Valadares Residencial Ltda - SCP Floramar (a) 50.00% 5, ,380 Arinos Empreendimentos Imobiliários Ltda 99.90% (282) Bujari Empreendimentos imobiliários Ltda 99.90% 10,478 - (423) (1,763) 8,292 Capela Empreendimentos Imobiliários Ltda % 12,625 - (462) (4,389) 7,774 Citrino Empreendimentos Imobiliários Ltda 99.90% Coral Empreendimentos imobiliários Ltda 99.99% 5, ,170 Direcional Abaré Empreendimentos Imobiliários Ltda 99.90% 2, (1,750) 2,082 Direcional Água Branca Empreendimentos Imobiliários Ltda 99.90% 3,283 - (82) 268 3,469 Direcional Agua das Flores Empreendimentos Imobiliários Ltda 99.90% 1, ,309 Direcional Água Marinha Empreendimentos Imobiliários Ltda 99.90% 5,673 - (12) (134) 5,527 Direcional Alegre Empreendimentos Imobiliários Ltda 99.90% 3, ,952 9,327 Direcional Âmbar Empreendimentos imobiliários Ltda 66.67% 27,330 (531) 739 2,470 30,008 Direcional Ametista Empreendimentos imobiliários Ltda 99.99% 8,301-6,333 1,708 16,342 Direcional Anadia Empreendimentos Imobiliários Ltda 99.90% 1,326 - (49) 391 1,668 Direcional Arapiraca Empreendimentos Imobiliários Ltda 99.90% 4,553 - (1) 172 4,724 Direcional Assis Brasil Empreendimentos Imobiliários Ltda 50.00% (10) 159 Direcional Azeviche Empreendimentos Imobiliários Ltda 55.20% Direcional Azurita Empreendimentos imobiliários Ltda 99.90% 10, ,461 Direcional Cajueiro Empreendimentos Imobiliários Ltda 99.90% 1,302 - (255) 1,095 2,142 Direcional Camaragibe Empreendimentos Imobiliários Ltda 99.90% Direcional Campinas Engenharia Ltda % 4, ,702 Direcional Canário Engenharia Ltda % 2, ,853 Direcional Capixaba Empreendimentos imobiliários Ltda 99.90% 17,802-4,034 1,877 23,713 Direcional Carneiros Empreendimentos Imobiliários Ltda 99.90% Direcional Construtora Valparaíso Ltda % 16,450 - (398) 1,080 17,132 Direcional Corretora de Imóveis S.A % 2, (387) 3,174 Direcional Coruripe Empreendimentos Imobiliários Ltda 99.90% (187) Direcional Diamante Empreendimentos imobiliários Ltda 99.99% 63,522-2,698 (5,876) 60,344 Direcional Engenharia S.A. - SCP Club House % (211) (3,976) (167) 8 (4,346) Direcional Esmeralda Empreendimentos imobiliários Ltda (a) 50.00% 19,461-2, ,417 Ernst & Young Terco 22

25 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Balance at the beginning of the period Capital increase (decrease)/fcc Balance at the end of the period Company Ownership interest % Dividends/ amortization Equity investments Direcional Estrela Empreendimentos Imobiliários Ltda 99.90% Direcional Feijo Empreendimentos imobiliários Ltda 99.90% 1, ,585 Direcional Igaci Empreendimentos Imobiliários Ltda 99.90% 7,184 - (1) 23 7,206 Direcional Jequia Empreendimentos Imobiliários Ltda 99.90% Direcional Leopoldina Empreendimentos Imobiliários Ltda 99.90% Direcional Malaquita Empreendimentos imobiliários Ltda 99.90% 7, ,418 Direcional Opala Empreendimentos imobiliários Ltda 98.10% 16,236 - (182) (6,087) 9,967 Direcional Ouro Branco Empreendimentos Imobiliários Ltda 99.90% Direcional Palmeira Empreendimentos Imobiliários Ltda 99.90% 737-1, ,260 Direcional Patrimar Maragogi Empreendimentos imobiliários Ltda (a) 45.00% 2,163-1,885-4,048 Direcional Porto Acre Empreendimentos imobiliários Ltda 99.90% 4, ,004 Direcional Riachos Empreendimentos Imobiliários Ltda 50.00% Direcional Rio Branco Empreendimentos Imobiliários Ltda 99.90% Direcional Rubi Empreendimentos imobiliários Ltda 99.99% 26, ,817 (4,450) 23,993 Direcional Safira Empreendimentos imobiliários Ltda 99.99% 28,653-1, ,113 Direcional Santa Rosa Empreendimentos Imobiliários Ltda 99.90% 5,236 - (13) 1,120 6,343 Direcional Santo Antônio Empreendimentos Imobiliários Ltda 99.99% 23, ,686 Direcional São Miguel Empreendimentos Imobiliários Ltda 99.90% 1, ,238 Direcional Sena Madureira Empreendimentos Imobiliários Ltda 99.90% ,763 8,026 Direcional Taguatinga Engenharia Ltda % 88,680-17,970 (7,054) 99,596 Direcional Tarauaca Empreendimentos Imobiliários Ltda 99.90% 17, (2,600) 15,125 Direcional Trincheiras Empreendimentos Imobiliários Ltda 77.50% 3, ,648 Direcional TSC Jamari Empreendimentos imobiliários Ltda 80.00% 7,033 (269) (553) 1,048 7,259 Direcional TSC Jatuarana Empreendimentos imobiliários Ltda 80.00% 16,235 (475) (1,191) ,722 Direcional TSC Lauro Sodré Empreendimentos Imobiliários Ltda 80.00% 5 (5) Direcional TSC Rio Madeira Empreendimentos imobiliários Ltda 80.00% 22,524 (322) (558) 2,022 23,666 Direcional Turmalina Empreendimentos Imobiliários Ltda 99.90% 1, ,921 Direcional Turquesa Empreendimentos Imobiliários Ltda 99.90% 2,160 - (30) 18 2,148 Direcional Xapuri Empreendimentos Imobiliários Ltda 99.90% Direcional SPL Ponciano Empreendimentos imobiliários Ltda (a) 50.00% Direcional São Primiano Empreendimentos imobiliários Ltda (a) 50.00% 408 (1) (1) Empresa 94 - Direcional Belo Monte Empreendimentos Imobiliários Ltda (a) 50.00% Ernane Agricola Empreendimentos imobiliários Ltda (a) 50.00% 4,678 (575) (134) - 3,969 Ernst & Young Terco 23

26 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Balance at the beginning of the period Capital increase (decrease)/fcc Balance at the end of the period Company Ownership interest % Dividends/ amortization Equity investments Flourita Empreendimentos Imobiliários Ltda 99.90% 52,313-2,071-54,384 Geminiano Projeto 01 Empreendimentos Imobiliários Ltda 50.00% 4,333 - (22) 296 4,607 Jaspe Empreendimentos imobiliários Ltda 99.90% Jonasa Empreendimentos Imobiliários Ltda % 57,009 (985) (3,058) 2,546 55,512 Ônix Empreendimentos Imobiliários Ltda 99.90% 47,878-2,421 11,983 62,282 SCP - Cidadão XI 99.90% 16,295 - (1,462) (1,771) 13,062 SCP - Direcional Ozias 99.90% (727) SCP - Direcional Petrópolis 99.90% (15) (500) 41 SCP - Direcional/ACR - Gran Riserva 98.10% 2,599 - (525) (730) 1,344 SCP - Direcional/ACR Lago 98.10% 8, (1,693) 7,063 SCP - Direcional/ACR - Le Parc de France 98.10% 1,158 (660) (16) SCP - Direcional/ACR - Maura Valadares 98.10% SCP - Direcional/ACR - Ouro Preto 97.19% 1,329 (968) (7) SCP - Direcional/ACR Paradiso 98.10% 3,680 - (307) 14 3,387 SCP - Direcional/ACR - Santa Mônica 98.10% (324) (820) (305) SCP - Direcional/ACR/Asacop - Província de Vicenza 10.00% SCP - Direcional/ASCC/Diedro-Eliza Miranda 40.00% 21,202 (1,680) ,442 SCP - Direcional/Aterpa - Cidade Nova 50.00% 21 - (12) - 9 SCP - Direcional/Aterpa - Santa Inês 50.00% SCP - Direcional/Capla - Brasília % 78 (437) 3 1 (355) SCP - Direcional/DAN/Gontijo Fernandes Jacundá 88.00% 27, ,405 SCP - Direcional/Edifica - Edifico Chopin (a) 79.00% 552 (900) (139) SCP - Direcional/Eólica - Quintas do Valqueire 10.00% SCP - Direcional/Eólica - Retiro dos Artistas (a) 50.00% 1,453 - (158) (229) 1,066 SCP - Direcional/Lasa - Águas Claras II 50.00% SCP - Direcional/MRV - Serra da Canastra (a) 50.00% SCP - Direcional/Somattos - Bartira Mourão (a) 50.00% SCP - Direcional/Somattos - Tereza Motta Valadares (a) 50.00% 9 (9) SCP - Direcional/SPL Campinas (a) 50.00% 1,002 (350) 94 (165) 581 SCP - Meu Orgulho 99.90% 27,790-9,259 (7,978) 29,071 SCP - Pro Moradia II 99.90% 32,302-2,167 2,795 37,264 SCP 15 - Aterpa - Rio de Janeiro (a) 45.00% 6,650 1, (609) 7,490 SCP 16 - Patrimar Cl. Manoel (a) 31.15% (9) (6) SCP 17 - V. Gontijo Split-off (a) 50.00% 212 (712) (54) - (554) Ernst & Young Terco 24

27 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Balance at the beginning of the period Capital increase (decrease)/fcc Balance at the end of the period Company Ownership interest % Dividends/ amortization Equity investments SCP Alterosa - Ribeirão das Neves 62.75% 5,799-3,584 3,257 12,640 SCP Aterrado do Leme (a) 75.00% 1, ,105 2,730 SCP Bairro Carioca % 18,946-4,833 (12,419) 11,360 SCP Boa Casa % ,438 1,942 SCP Direcional/Comim Meu Orgulho Infra 62.00% 35,191 - (106) 6,627 41,712 SCP Macapá 99.90% SCP Sarandi - Andrade Valladares Residencial Ltda (a) 50.00% Seabra Empreendimentos imobiliários Ltda 99.90% 10,343-3,168-13,511 SPE - Diresomattos Gutierrez Empreendimentos imobiliários Ltda 50.00% (a) (500) 358 SPE - Rubelita Empreendimentos imobiliários Ltda (a) 50.00% 4,532 1,289 (142) - 5,679 SPE 25 - SPE Maura Gontijo (a) 50.00% 496 (590) SPE 31 - Direcional Silvestre Ltda 82.00% 4, ,131 1,066 6,533 SPE 34 - Alexandria Empreendimentos imobiliários Ltda (a) 50.00% 4,561 (876) 122-3,807 SPE 50 - Direcional Sodalita Empreendimentos 50.00% 1,284 (37) ,285 SPE 61 - Direcional Oiti Empreendimentos imobiliários Ltda (a) 50.00% 774 (299) SPE 66 - Bom Sucesso Incorporação e Investimentos Imobiliários 28.00% S.A. (a) 6, ,899 SPE 70 - Santa Margarida Empreendimentos imobiliários Ltda (a) 47.50% 2,116 (623) (3) 626 2,116 SPE 77 - Direcional Jordão Empreendimentos imobiliários Ltda (a) 50.00% SPE 80 - Direcional Brasileia Empreendimentos imobiliários Ltda 50.00% (a) 8, ,011-10,054 Una Empreendimentos imobiliários Ltda 99.90% 8,157-1,647 (1,343) 8,461 Zircone Empreendimentos imobiliários Ltda % 41,479-3,710 6,608 51,797 1,014,960 (10,541) 72,026 9,771 1,086,216 (a) These represent jointly-controlled entities. Ernst & Young Terco 25

28 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Changes in investments at March 31, 2011 are as under: Ownership interest % 12/31/2010 Dividends/ amortization Equity investments Capital increase (decrease)/fcc 12/31/2011 Company SCP - Direcional/MRV - Serra da Canastra (a) 50.00% (36) SCP - Direcional/Aterpa - Santa Inês (a) 50.00% 17 (1) (16) - - SCP - Direcional/Aterpa - Cidade Nova (a) 50.00% 51 - (30) - 21 SCP - Direcional/Lasa - Águas Claras II (a) 50.00% 662 (476) SCP - Direcional/Capla - Brasília (a) % 85 (19) Direcional Engenharia S.A. - SCP Club House % 714 (833) (147) 54 (212) SCP - Direcional/SPL - Campinas (a) 50.00% 5,102 (3,400) (100) (600) 1,002 SCP - Direcional/Eólica - Quintas do Valqueire (a) 10.00% 8 (8) SCP - Direcional/Eólica - Retiro dos Artistas (a) 50.00% 6,215 (3,090) (437) (1,235) 1,453 SCP - Direcional/ACR - Green Village (a) 20.00% 2 (2) SCP - Direcional/ACR/Asacop - Província de Vicenza (a) 10.00% (5) SCP - Direcional/ASCC/Diedro-Eliza Miranda (a) 40.00% 23,475 (6,844) 3, ,202 SCP - Direcional/DAN/Gontijo Fernandes - Jacundá 88.00% 25,935 (6,547) 3,485 4,617 27,490 SCP - Direcional/ACR - Ouro Preto 97.19% 3,621 (2,400) 108-1,329 Direcional Taguatinga Engenharia Ltda % 55,523 (139) 41,884 (8,589) 88,679 Direcional Canário Engenharia Ltda % ,560 2,554 Altana Empreendimentos Imobiliarios Ltda. (a) 50.00% Direcional Campinas Engenharia Ltda % 4, ,696 Direcional Construtora Valparaíso Ltda % 15,524 (205) (3,847) 4,978 16,450 Jonasa Empreendimentos Imobiliários Ltda % 43,650 (7,448) 6,433 14,374 57,009 SCP - Direcional/Edifica - Edifico Chopin 79.00% 504 (20) Ernst & Young Terco 26

29 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Ownership interest % 12/ Dividends/ amortization Equity investments Capital increase (decrease)/fcc 12/31/2011 Company Direcional Diamante Empreendimentos Imobiliarios Ltda 99.99% 38,248 (3,000) 4,601 23,674 63,523 Direcional Ametista Empreendimentos Imobiliarios Ltda 99.99% 2,658-1,887 3,756 8,301 Direcional Opala Empreendimentos Imobiliarios Ltda 98.10% 11,878 (1,058) 3,433 1,983 16,236 Direcional Esmeralda Empreendimentos Imobiliarios Ltda (a) 50.00% 11,579 (116) 7,998-19,461 Direcional Safira Empreendimentos Imobiliarios Ltda 99.99% 25,118 (12) 9,641 (6,093) 28,654 Direcional Rubi Empreendimentos Imobiliarios Ltda 99.99% 13,631 (6,203) 13,816 5,381 26,625 Direcional Âmbar Empreendimentos Imobiliarios Ltda 66.67% 18,127 (632) 160 9,674 27,329 SCP - Direcional/ACR - Gran Riserva 98.10% 9,026 (5,614) (513) (300) 2,599 SCP - Direcional/ACR - Paradiso 98.10% 22,327 (18,711) 64-3,680 SCP - Direcional/ACR - Maura Valadares 98.10% 2,753 (5,040) 82 2, SCP - Direcional/ACR - Lago 98.10% 9,065 - (8,179) 7,601 8,487 Direcional TSC Rio Madeira Empreendimentos Imobiliarios Ltda 80.00% 8,069 (454) (4,314) 19,223 22,524 Direcional TSC Jamari Empreendimentos Imobiliarios Ltda 80.00% 4,693 (1,616) 102 3,855 7,034 Direcional TSC Lauro Sodré Empreendimentos Imobiliários Ltda 80.00% Direcional TSC Jatuarana Empreendimentos Imobiliarios Ltda 80.00% 9,003 (295) 1,265 6,262 16,235 SCP - Direcional/ACR - Le Parc de France 98.10% 3,618 (3,634) (108) 1,282 1,158 SCP - Direcional/ACR - Santa Mônica 98.10% 4,392 (3,308) (610) (798) (324) Ônix Empreendimentos Imobiliários Ltda 99.90% 24,640 (5) 9,406 13,837 47,878 Direcional Malaquita Empreendimentos Imobiliarios Ltda 99.90% 6, (164) 948 7,383 Una Empreendimentos Imobiliarios Ltda 99.90% 2,630 (1) 6,091 (563) 8,157 Alexandrita Empreendimentos Imobiliarios Ltda (a) 50.00% 3,956 - (855) 1,478 4,579 Ernst & Young Terco 27

30 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Company Ownership interest % 12/31/2010 Dividends/ amortization Equity investments Capital increase (decrease)/fcc 12/31/2011 Bujari Empreendimentos Imobiliarios Ltda 99.90% 2,936-4,533 3,008 10,477 Coral Empreendimentos Imobiliarios Ltda 99.90% 4,633 - (91) 507 5,049 Zircone Empreendimentos Imobiliarios Ltda % 6,831 (933) 12,069 23,516 41,483 Jaspe Empreendimentos Imobiliarios Ltda 99.90% Direcional Corretora de Imóveis S.A % 2,348 (1,791) 2,696 (384) 2,869 Direcional Azurita Empreendimentos Imobiliarios Ltda 99.90% 7,083-2,027 1,792 10,902 Direcional Abaré Empreendimentos Imobiliários Ltda 99.90% 814 (19) 1,006 1,105 2,906 Direcional Água Marinha Empreendimentos Imobiliários Ltda 99.90% 3, ,137 5,673 Direcional Anadia Empreendimentos Imobiliários Ltda 99.90% (102) 991 1,327 Andaraí Empreendimentos Imobiliários Ltda 99.90% 12, ,052 Direcional Turquesa Empreendimentos Imobiliários Ltda 99.90% 12, (9,849) 2,159 Flourita Empreendimentos Imobiliários Ltda 99.90% 35,189 (9) 18,104 (971) 52,313 Direcional Azeviche Empreendimentos Imobiliários Ltda 55.20% Arinos Empreendimentos Imobiliários Ltda 99.90% 1,475 - (1,329) Direcional Assis Brasil Empreendimentos Imobiliários Ltda (a) 50.00% Citrino Empreendimentos Imobiliários Ltda 99.90% Direcional Turmalina Empreendimentos Imobiliários Ltda 99.90% (5) 1,285 1,919 SCP - Direcional Petrópolis 99.90% 523 (78) (125) SCP - Direcional Ozias 99.90% 14,343 (5,572) (3,180) (4,792) 799 Ernst & Young Terco 28

31 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Ownership interest % 12/31/2010 Dividends/ amortization Equity investments Capital increase (decrease)/fcc 12/31/2011 Company Seabra Empreendimentos Imobiliarios Ltda - Total Ville Porto Velho 99.90% 8,286-8,629 (6,571) 10,344 Direcional Patrimar Maragogi Empreendimentos Imobiliarios Ltda (a) 45.00% 2,492 (2,000) 1,671-2,163 SCP - Cidadão XI 99.90% 9,694-2,258 4,343 16,295 SCP - Pro Moradia II 99.90% 8,516-10,128 13,659 32,303 Capela Empreendimentos Imobiliários Ltda % - - (373) 12,998 12,625 Direcional Porto Acre Empreendimentos Imobiliarios Ltda 99.90% 215-1,161 2,944 4,320 Direcional Feijo Empreendimentos Imobiliarios Ltda 99.90% 1,349 - (5) 183 1,527 Direcional Capixaba Empreendimentos Imobiliarios Ltda 99.90% 7,272 (3) 9,239 1,295 17,803 SCP - Meu Orgulho 99.90% 12,973 (21,968) 29,876 6,908 27,789 Andrade Valladares Residencial Ltda - SCP Floramar (a) 50.00% - (158) 3,095 2,565 5,502 Geminiano Projeto 01 Empreendimentos Imobiliários Ltda (a) 50.00% 4,211 - (1) 123 4,333 Direcional Rio Branco Empreendimentos Imobiliários Ltda 99.90% SCP Direcional/Comim Meu Orgulho - Infra 62.00% 12,485 (3,991) ,715 35,191 SCP Sarandi - Andrade Valladares Residencial Ltda (a) 50.00% Direcional Santa Rosa Empreendimentos Imobiliários Ltda 99.90% 3,078 - (20) 2,179 5,237 Direcional Santo Antônio Empreendimentos Imobiliários Ltda 99.90% 1,613 (398) (374) 22,444 23,285 Direcional Arapiraca Empreendimentos Imobiliários Ltda 99.90% 3,471 - (19) 1,101 4,553 Direcional Xapuri Empreendimentos Imobiliários Ltda 99.90% Direcional São Miguel Empreendimentos Imobiliários Ltda 99.90% ,699 Ernst & Young Terco 29

32 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Ownership interest % 12/31/2010 Dividends/ amortization Equity investments Capital increase (decrease)/fcc 12/31/2011 Company Direcional Tarauaca Empreendimentos Imobiliários Ltda 99.90% 1,605-13,059 2,729 17,393 Direcional Igaci Empreendimentos Imobiliários Ltda 99.90% 7, ,184 Direcional Cajueiro Empreendimentos Imobiliários Ltda 99.90% 1 - (6) 1,307 1,302 Direcional Riachos Empreendimentos Imobiliários Ltda (a) 50.00% Direcional Alegre Empreendimentos Imobiliários Ltda 99.90% 2, ,293 SCP Boa Casa % 1 - (2,514) 2, Direcional Carneiros Empreendimentos Imobiliários Ltda 99.90% Direcional Água Branca Empreendimentos Imobiliários Ltda 99.90% - - (1) 3,284 3,283 Direcional Coruripe Empreendimentos Imobiliários Ltda 99.90% - - (7) SCP Alterosa - Ribeirão das Neves 62.75% - - 5,911 (112) 5,799 Direcional Leopoldina Empreendimentos Imobiliários Ltda 99.90% SCP Bairro Carioca % - - 5,840 13,107 18,947 Direcional Sena Madureira Empreendimentos Imobiliários Ltda 99.90% Direcional Trincheiras Empreendimentos Imobiliários Ltda 77.50% - - 1,263 1,830 3,093 Direcional Agua das Flores Empreendimentos Imobiliários Ltda 99.90% ,072 1,072 Direcional Estrela Empreendimentos Imobiliários Ltda 99.90% Direcional Jequia Empreendimentos Imobiliários Ltda 99.90% - - (6) Direcional Palmeira Empreendimentos Imobiliários Ltda 99.90% - - (26) SCP Aterrado do Leme 75.00% ,165 Ernst & Young Terco 30

33 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Ownership interest % 12/31/2010 Dividends/ amortization Equity investments Capital increase (decrease)/fcc 12/31/2011 Company Direcional São Primiano Empreendimentos Imobiliarios Ltda (a) 50.00% - 46 (14) SCP 15 - Aterpa - Rio de Janeiro(a) 45.00% 9,323 (1,179) (318) (1,176) 6,650 SCP 16 - Patrimar Cl. Manoel (a) 31.15% 24 (19) (14) - (9) SPE 25 - SPE Maura Gontijo (a) 50.00% 2,670 (2,127) (129) SPE - Rubelita Empreendimentos Imobiliarios Ltda (a) 50.00% 4,267 (110) (255) 630 4,532 SPE 31 - Direcional Silvestre Ltda (a) 82.00% ,152 2,629 4,247 SPE 34 - Alexandria Empreendimentos Imobiliarios Ltda (a) 50.00% 6, ,372 (3,486) 4,561 SPE 50 - Direcional Sodalita Empreendimentos (a) 50.00% 1,287 (3) - - 1,284 SPE 61 - Direcional Oiti Empreendimentos Imobiliarios Ltda (a) 50.00% 1,048 (239) (35) SPE 66 - Bom Sucesso Incorporação e Investimentos Imobiliários S.A. (a) 28.00% 6,902 - (2) - 6,900 SPE 70 - Santa Margarida Empreendimentos Imobiliarios Ltda (a) 47.50% 2,118 (15) (3) 15 2,115 SPE 77 - Direcional Jordão Empreendimentos Imobiliarios Ltda (a) 50.00% SPE 80 - Direcional Brasileia Empreendimentos Imobiliarios Ltda (a) 50.00% 2,480 (386) 4,005 2,313 8,412 Empresa 94 - Direcional Belo Monte Empreendimentos Imobiliários Ltda (a) 50.00% Direcional SPL Ponciano Empreendimentos Imobiliarios Ltda (a) 50.00% SCP 17 - V. Gontijo - Cisão (a) 50.00% 313 (48) (54) SPE - Diresomattos Gutierrez Empreendimentos Imobiliarios Ltda (a) 50.00% 3,072 (1,942) 51 (858) 323 SCP - Direcional/Somattos - Bartira Mourão (a) 50.00% 1,012 (148) 74 (150) 788 SCP - Direcional/Somattos - Tereza Motta Valadares (a) 50.00% 937 (639) (136) (160) 2 Ernane Agricola Empreendimentos Imobiliarios Ltda (a) 50.00% 5,468 (356) (434) - 4, ,609 (125,045) 226, ,807 1,014,960 (a) Refer to jointly controlled entities. Ernst & Young Terco 31

34 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Summary of Company investees financial information at is as follows: Ownership interest Balance sheet Assets Liabilities Net sales and Noncurrent Non- service Current Current current Equity revenues Gross profit Income statements Operating expenses, net Company SCP - Direcional/MRV - Serra da Canastra (a) 50.00% (1) 169 SCP - Direcional/Aterpa - Santa Inês (a) 50.00% SCP - Direcional/Aterpa - Cidade Nova (a) 50.00% (13) (11) 1 - (23) SCP - Direcional/Lasa - Águas Claras II (a) 50.00% (1) 67 SCP - Direcional/Capla - Brasília (a) % 1,370-1,725 1 (356) (1) 3 Direcional Engenharia S.A. - SCP Club House % 13, , (4,345) 113 (255) (167) SCP - Direcional/SPL - Campinas (a) 50.00% 1, , (38) SCP - Direcional/Eólica - Quintas do Valqueire 10.00% SCP - Direcional/Eólica - Retiro dos Artistas 50.00% 4, , , (625) (315) SCP - Direcional/ACR/Asacop - Província de Vicenza 10.00% SCP - Direcional/ASCC/Diedro-Eliza Miranda 40.00% 48,938 7,646 4, ,105 5,898 2,968 (225) (201) (241) 2,301 SCP - Direcional/DAN/Gontijo Fernandes - Jacundá 88.00% 41,151 1,702 9, ,279 2,490 1,132 (55) 52 (88) 1,041 SCP - Direcional/ACR - Ouro Preto 97.19% (47) 23 (4) (7) Direcional Taguatinga Engenharia Ltda % 143,892 54,190 66,141 32,345 99,596 49,853 19,449 (546) 110 (1,043) 17,970 Direcional Canário Engenharia Ltda % 2, , Altana Empreendimentos Imobiliarios Ltda % (1) Direcional Campinas Engenharia Ltda % 248 6,092 1,634-4, Direcional Construtora Valparaíso Ltda % 22,294 16,305 1,422 15,762 21,415 (1,206) (559) 20 (1) 42 (498) Jonasa Empreendimentos Imobiliários Ltda % 166,407 1,075 91,316 6,776 69,390 11,641 (2,731) (769) 50 (373) (3,823) SCP - Direcional/Edifica - Edifico Chopin 79.00% (176) - - (1) 3-2 Direcional Diamante Empreendimentos Imobiliarios Ltda 99.99% 90,463 11,472 17,902 23,683 60,350 6,334 3,218 (393) 71 (198) 2,698 Direcional Ametista Empreendimentos Imobiliarios Ltda 99.99% 10,987 12, ,401 16,344 9,701 6,541 (74) (1) (132) 6,334 Direcional Opala Empreendimentos Imobiliarios Ltda 98.10% 24, ,128 5,652 10,159 1,057 (121) (121) 151 (95) (186) Direcional Esmeralda Empreendimentos Imobiliarios Ltda 50.00% 76,757 15,611 13,135 34,399 44,834 14,011 6,436 (159) 158 (548) 5,887 Direcional Safira Empreendimentos Imobiliarios Ltda 99.99% 64,504 20,492 18,217 35,662 31,117 5,119 2,612 (769) 13 (163) 1,693 Financial income Income taxes Net income Ernst & Young Terco 32

35 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Ownership interest Balance Sheet Assets Liabilities Net sales and Noncurrent Non- service Current Current current Equity revenues Gross profit Income statements Operating expenses, net Company Direcional Rubi Empreendimentos Imobiliarios Ltda 99.99% 66, ,324 1,008 23,995 13,087 2,711 (497) (15) (382) 1,817 Direcional Âmbar Empreendimentos Imobiliarios Ltda 66.67% 91,613 11,416 24,280 33,741 45,008 5,174 1, (149) 1,108 SCP - Direcional/ACR - Gran Riserva 98.10% , (449) (104) 27 (9) (535) SCP - Direcional/ACR - Paradiso 98.10% 21, ,722 3,119 3, (344) (15) (313) SCP - Direcional/ACR - Maura Valadares 98.10% (34) (1) SCP - Direcional/ACR - Lago 98.10% 15,204 24,845 5,461 27,389 7,199 1, (118) 8 (52) 273 Direcional TSC Rio Madeira Empreendimentos Imobiliarios Ltda 80.00% 61, ,161 10,729 29,583 1,158 (1,262) (34) (697) Direcional TSC Jamari Empreendimentos Imobiliarios Ltda 80.00% 21, , , (617) (62) 1 (13) (691) Direcional TSC Jatuarana Empreendimentos Imobiliarios Ltda 80.00% 37, ,893 8,709 18,403 3,027 (1,391) (23) 13 (88) (1,489) SCP - Direcional/ACR - Le Parc de France 98.10% (9) (19) (2) (16) SCP - Direcional/ACR - Santa Mônica 98.10% 1, , (310) (10) 8 (4) 20 Ônix Empreendimentos Imobiliários Ltda 99.90% 93,576 11,557 21,223 21,566 62,344 15,034 3,039 (145) 12 (482) 2,424 Direcional Malaquita Empreendimentos Imobiliarios Ltda 99.90% 7, , Una Empreendimentos Imobiliarios Ltda 99.90% 5,216 7,389 1,198 2,938 8,469 4,097 1,807 (39) 7 (127) 1,648 Alexandrita Empreendimentos Imobiliarios Ltda 50.00% 33, , ,619 3,607 (1,236) (15) 3 (92) (1,340) Bujari Empreendimentos Imobiliarios Ltda 99.90% 21, ,648 1,390 8,300 2,528 (370) (2) 25 (76) (423) Coral Empreendimentos Imobiliarios Ltda 99.90% 8, ,987 5, Zircone Empreendimentos Imobiliarios Ltda % 55,877 29,887 6,704 42,648 36,412 16,227 4,725 (307) 19 (727) 3,710 Jaspe Empreendimentos Imobiliarios Ltda 99.90% Direcional Corretora de Imóveis S.A % 3, ,174 1,323 1,183 (352) 2 (141) 692 Direcional Azurita Empreendimentos Imobiliarios Ltda 99.90% 23,721 3,353 3,437 12,165 11,472 1, (296) 107 (39) 40 Direcional Abaré Empreendimentos Imobiliários Ltda 99.90% 10,640 2,925 8,407 3,074 2,084 3,687 1,174 (130) 11 (128) 927 Direcional Água Marinha Empreendimentos Imobiliários Ltda 99.90% 64 24, ,105 5, (14) 2 - (12) Direcional Anadia Empreendimentos Imobiliários Ltda 99.90% 7, ,610 1, (48) (1) - (49) Andaraí Empreendimentos Imobiliários Ltda 99.90% 13, , Direcional Turquesa Empreendimentos Imobiliários Ltda 99.90% 12, ,386-2, (30) - - (30) Flourita Empreendimentos Imobiliários Ltda 99.90% 34,730 55,745 3,588 32,449 54,438 8,334 2,785 (230) 22 (504) 2,073 Financial income Income taxes Net income Ernst & Young Terco 33

36 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Ownership interest Balance sheet Assets Liabilities Net sales and Noncurrent Non- service Current Current current Equity revenues Gross profit Income statements Operating expenses, net Company Direcional Azeviche Empreendimentos Imobiliários Ltda 55.20% Arinos Empreendimentos Imobiliários Ltda 99.90% 10, , (280) (280) - (2) - (282) Direcional Assis Brasil Empreendimentos Imobiliários Ltda 50.00% 341 6, , Citrino Empreendimentos Imobiliários Ltda 99.90% 33 9, , Direcional Turmalina Empreendimentos Imobiliários Ltda 99.90% 9 2, , SCP - Direcional Petrópolis 99.90% (5) (11) 2 (1) (15) SCP - Direcional Ozias 99.90% (663) (65) - - (728) Seabra Empreendimentos imobiliários Ltda 99.90% 71,480 4,068 53,825 8,198 13,525 11,960 3,978 (573) 4 (238) 3,171 Direcional Patrimar Maragogi Empreendimentos imobiliários Ltda (a) 45.00% 21, ,990 9,336 8,995 6,721 4,295 (66) 71 (112) 4,188 SCP - Cidadão XI 99.90% 14, , ,074 1,184 (1,432) (43) 32 (21) (1,464) SCP - Pro Moradia II 99.90% 39, , ,301 6,424 2,216 (15) - (32) 2,169 Capela Empreendimentos Imobiliários Ltda % 5,745 2, ,774 8, (688) 75 (301) (462) Direcional Porto Acre Empreendimentos imobiliários Ltda 99.90% 7,087 4,226 2,234 4,070 5,009 1, (178) (3) (22) 96 Direcional Feijo Empreendimentos imobiliários Ltda 99.90% 3, ,300 1, Direcional Capixaba Empreendimentos imobiliários Ltda 99.90% 20,990 18,097 1,860 13,491 23,736 8,448 4,467 (139) - (289) 4,039 SCP - Meu Orgulho 99.90% 35, ,566 1,167 29,101 34,101 9,482 (35) 50 (229) 9,268 Andrade Valladares Residencial Ltda - SCP Floramar (a) 50.00% 13,265 10,882 10, ,760 4,281 1,805 (154) 32 (127) 1,556 Geminiano Projeto 01 Empreendimentos Imobiliários Ltda 50.00% 9, , (44) - - (44) Direcional Rio Branco Empreendimentos Imobiliários Ltda 99.90% 18, , SCP Direcional/Comim Meu Orgulho - Infra 62.00% 71, , ,277 9,017 (492) (48) 623 (254) (171) SCP Sarandi - Andrade Valladares Residencial Ltda (a) 50.00% Direcional Santa Rosa Empreendimentos Imobiliários Ltda 99.90% 16, ,401 6, (13) - - (13) Direcional Santo Antônio Empreendimentos Imobiliários Ltda 99.99% 57 23, , Direcional Arapiraca Empreendimentos Imobiliários Ltda 99.90% 14, ,393 4, (1) - - (1) Direcional Xapuri Empreendimentos Imobiliários Ltda 99.90% 14,168-13, Financial income Income taxes Net income Ernst & Young Terco 34

37 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Ownership interest Balance sheet Assets Liabilities Net sales and Noncurrent Non- service Current Current current Equity revenues Gross profit Income statements Operating expenses, net Company Direcional São Miguel Empreendimentos Imobiliários Ltda 99.90% 6,214-3,974-2, Direcional Tarauaca Empreendimentos Imobiliários Ltda 99.90% 22,306 5, ,755 15,140 1, (29) 17 (36) 332 Direcional Igaci Empreendimentos Imobiliários Ltda 99.90% 7, , (1) - - (1) Direcional Cajueiro Empreendimentos Imobiliários Ltda 99.90% 7,662 1, ,514 2, (255) (1) - (256) Direcional Riachos Empreendimentos Imobiliários Ltda 50.00% 16,974-3,203 12, Direcional Alegre Empreendimentos Imobiliários Ltda 99.90% ,740-14,863 9, SCP Boa Casa % 2, , (679) (23) 130 Direcional Carneiros Empreendimentos Imobiliários Ltda 99.90% 6, , Direcional Água Branca Empreendimentos Imobiliários Ltda 99.90% 1,506 43,325 29,113 12,246 3, (82) - (82) Direcional Coruripe Empreendimentos Imobiliários Ltda 99.90% 12, , (186) (1) - (187) SCP Alterosa - Ribeirão das Neves 62.75% 26, , ,143 20,338 5,877 (110) 68 (123) 5,712 Direcional Leopoldina Empreendimentos Imobiliários Ltda 99.90% 57 9,619-9, SCP Bairro Carioca % 16, , ,360 19,398 4,889 (5) 235 (286) 4,833 Direcional Sena Madureira Empreendimentos Imobiliários Ltda 99.90% 13 23,516-15,495 8, Direcional Trincheiras Empreendimentos Imobiliários Ltda 77.50% 16,088 3,461 5,408 8,144 5,997 4,331 1,847 (667) (2) (124) 1,054 Direcional Agua das Flores Empreendimentos Imobiliários Ltda 99.90% 17, ,000 1, Direcional Estrela Empreendimentos Imobiliários Ltda 99.90% - 7,000 7, Direcional Camaragibe Empreendimentos Imobiliários Ltda 99.90% Direcional Jequia Empreendimentos Imobiliários Ltda 99.90% Direcional Palmeira Empreendimentos Imobiliários Ltda 99.90% 10, , ,262 5,607 1,438 (189) 2 (57) 1,194 SCP Aterrado do Leme (a) 75.00% 3, ,641 2, (10) 614 SCP Macapá 99.90% (4) 336 Financial income Income taxes Net income Ernst & Young Terco 35

38 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Ownership interest Balance sheet Assets Liabilities Net sales and Noncurrent Non- service Current Current current Equity revenues Gross profit Income statements Operating expenses, net Company Direcional Ouro Branco Empreendimentos Imobiliários Ltda 99.90% Empresa Direcional São Primiano Empreendimentos imobiliários Ltda 50.00% 1, (1) - - (1) SCP 15 - Aterpa - Rio de Janeiro (a) 45.00% 21, , , (169) (18) 132 SCP 16 - Patrimar Cl. Manoel (a) 31.15% (21) SCP 17 - V. Gontijo - Cisão (a) 50.00% 423-1,533 - (1,110) (209) (125) 12-5 (108) SPE 25 - SPE Maura Gontijo (a) 50.00% (83) (16) 611 (11) 501 SPE - Rubelita Empreendimentos imobiliários Ltda (a) 50.00% 12, , (191) - 35 (129) (285) SPE 31 - Direcional Silvestre Ltda (a) 82.00% 13, , ,968 6,044 1,583 (76) - (128) 1,379 SPE 34 - Alexandria Empreendimentos imobiliários Ltda (a) 50.00% 6,840 1, , (35) 76 (23) 243 SPE 50 - Direcional Sodalita Empreendimentos (a) 50.00% 2, , (1) - - (1) SPE 61 - Direcional Oiti Empreendimentos imobiliários Ltda (a) 50.00% , (272) SPE 66 - Bom Sucesso Incorporação e Investimentos Imobiliários S.A. (a) 28.00% 27,362-2,722-24, SPE 70 - Santa Margarida Empreendimentos imobiliários Ltda (a) 47.50% 10,505-6,051-4, (5) (1) - (6) SPE 77 - Direcional Jordão Empreendimentos imobiliários Ltda (a) 50.00% 1, , SPE 80 - Direcional Brasileia Empreendimentos imobiliários Ltda (a) 50.00% 45, , ,109 11,567 2,436 (425) 166 (156) 2,021 Empresa 94 - Direcional Belo Monte Empreendimentos Imobiliários Ltda (a) 50.00% Empresa Direcional SPL Ponciano Empreendimentos imobiliários Ltda (a) 50.00% 1, , SPE - Diresomattos Gutierrez Empreendimentos imobiliários Ltda (a) 50.00% SCP - Direcional/Somattos - Bartira Mourão (a) 50.00% 1, , Ernane Agrícola Empreendimentos Imobiliários Ltda (a) 50.00% 9, ,326-7, (225) - (127) 84 (268) (a) These represent jointly-controlled entities. Financial income Income taxes Net income Ernst & Young Terco 36

39 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Summary of Company investees financial statements at December 31, 2011 is as follows: Balance sheet Income statements Assets Liabilities Net sales and Sociedade Current Noncurrent Current Noncurrent Equity service revenues Gross profit Operating expenses, net Financial income Income taxes Net income SCP Direcional/Comim Meu Orgulho Infra 62, , ,759 28,593 1,586 (10) 217 (208) 1,585 SCP Sarandi - Andrade Valladares Residencial Ltda Direcional Santa Rosa Empreendimentos Imobiliários Ltda 13, ,257 7,501 5, (19) (1) - (20) SCP Boa Casa 1, ,009 (1,633) (832) - (49) (2,514) SCP Bairro Carioca 22, , ,946 21,269 6, (242) 5,840 SCP - Direcional/MRV - Serra da Canastra (a) (2) (90) 9 15 (6) (72) SCP - Direcional/Aterpa - Santa Inês (a) (34) (32) SCP - Direcional/Aterpa - Cidade Nova (a) (78) 8 11 (1) (60) SCP - Direcional/Lasa - Águas Claras II (a) SCP - Direcional/Capla Brasília (a) (27) Direcional Engenharia S.A. - SCP Club House 33, , (211) 10,440 2,781 (2,742) 211 (397) (147) SCP - Direcional/SPL Campinas (a) 2, , (435) (75) (200) SCP - Direcional/Eólica - Quintas do Valqueire SCP - Direcional/Eólica - Retiro dos Artistas 4, ,106 2,906 1,748 (248) (724) 197 (100) (875) SCP - Direcional/ACR - Green Village SCP - Direcional/ACR/Asacop - Província de Vicenza SCP - Direcional/ASCC/Diedro-Eliza Miranda 53,409 9,673 8,525 1,553 53,004 24,669 13,156 (1,052) (1,973) (1,178) 8,953 SCP - Direcional/DAN/Gontijo Fernandes Jacundá 43,889 2,412 14, ,237 12,858 5,098 (793) 74 (419) 3,960 SCP - Direcional/ACR - Ouro Preto 1, , (9) (12) 169 (37) 111 Direcional Taguatinga Engenharia Ltda. 122,974 44,164 52,108 26,350 88, ,519 46,539 (2,440) 331 (2,546) 41,884 Direcional Canário Engenharia Ltda. 2, , (1) 1 Altana Empreendimentos Imobiliarios Ltda Direcional Campinas Engenharia Ltda. 1,029 5,295 1,624-4, Direcional Construtora Valparaíso Ltda. 24,049 16,681 4,371 15,797 20,562 1,923 (3,228) (1,520) (4) (57) (4,809) Jonasa Empreendimentos Imobiliários Ltda. 156,166 4,285 83,436 5,754 71,261 74,904 14,707 (4,669) 337 (2,334) 8,041 SCP - Direcional/Edifica - Edifico Chopin (39) Direcional Diamante Empreendimentos Imobiliarios Ltda 86,804 11,015 15,501 18,790 63,528 36,850 6,526 (864) 135 (1,196) 4,601 Direcional Ametista Empreendimentos Imobiliarios Ltda 11,592 8, ,400 8,302 9,961 3,521 (1,336) (4) (294) 1,887 Direcional Opala Empreendimentos Imobiliarios Ltda 31,734 1,900 9,973 7,111 16,550 17,390 4,329 (468) 155 (516) 3,500 Direcional Esmeralda Empreendimentos Imobiliarios Ltda 63,229 5,671 14,521 15,458 38,921 42,518 17,576 (589) 323 (1,314) 15,996 Ernst & Young Terco 37

40 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Balance sheet Income statements Assets Liabilities Net sales and Company Current Noncurrent Current Noncurrent Equity service revenues Gross profit Operating expenses, net Financial income Income taxes Net income Direcional Safira Empreendimentos Imobiliarios Ltda 57,631 25,373 15,899 38,449 28,656 32,372 10,535 (483) 55 (465) 9,642 Direcional Rubi Empreendimentos Imobiliarios Ltda 57, , ,628 40,708 15,737 (754) (9) (1,157) 13,817 Direcional Âmbar Empreendimentos Imobiliarios Ltda 84,724 13,942 51,660 6,014 40,992 36,533 4,744 (3,377) (109) (1,018) 240 SCP - Direcional/ACR - Gran Riserva 1,862 1, ,649 (647) (593) (18) 100 (12) (523) SCP - Direcional/ACR Paradiso 3,774 20,552 16,041 4,534 3,751 2, (21) 69 (103) 66 SCP - Direcional/ACR - Maura Valadares (169) SCP - Direcional/ACR Lago 13,257 30,585 4,941 30,249 8,652 5,027 (196) (491) (7,500) (151) (8,338) Direcional TSC Rio Madeira Empreendimentos Imobiliarios Ltda 57,831 1,344 29,985 1,035 28,155 17,543 (4,415) (999) 837 (816) (5,393) Direcional TSC Jamari Empreendimentos Imobiliarios Ltda 21, , ,792 10, (311) 6 (290) 128 Direcional TSC Lauro Sodré Empreendimentos Imobiliários Ltda Direcional TSC Jatuarana Empreendimentos Imobiliarios Ltda 38, ,238 9,915 20,294 25,518 2,614 (288) (11) (733) 1,582 SCP - Direcional/ACR - Le Parc de France 1, , (133) (7) 47 (17) (110) SCP - Direcional/ACR - Santa Mônica 1,909 1,363 3, (330) 893 (594) (24) 33 (37) (622) Ônix Empreendimentos Imobiliários Ltda 73,819 11,139 19,163 17,869 47,926 51,625 11,448 (790) 278 (1,521) 9,415 Direcional Malaquita Empreendimentos Imobiliarios Ltda 7, , (135) - (29) (164) Una Empreendimentos Imobiliarios Ltda 7,767 4, ,721 8,165 13,818 7,635 (1,237) 153 (454) 6,097 Alexandrita Empreendimentos Imobiliarios Ltda 32, ,067 2,489 9,159 18,917 (1,230) (74) 104 (509) (1,709) Bujari Empreendimentos Imobiliarios Ltda 22, ,285 4,294 10,488 16,654 4,959 (59) 116 (478) 4,538 Coral Empreendimentos Imobiliarios Ltda 8, ,988 5, (91) - - (91) Zircone Empreendimentos Imobiliarios Ltda 50,274 19,559 6,248 39,378 24,207 42,992 15,695 (2,445) 57 (1,238) 12,069 Jaspe Empreendimentos Imobiliarios Ltda Direcional Corretora de Imóveis S.A. 3, ,869 4,377 4,157 (921) (5) (535) 2,696 Direcional Azurita Empreendimentos Imobiliarios Ltda 22,957 3,272 3,168 12,149 10,912 5,622 2,244 (70) (2) (143) 2,029 Direcional Abaré Empreendimentos Imobiliários Ltda 8, , ,909 6,323 2,624 (1,431) 8 (194) 1,007 Direcional Água Marinha Empreendimentos Imobiliários Ltda , ,275 5, (4) 13 Direcional Anadia Empreendimentos Imobiliários Ltda 6, ,370 1, (101) (1) - (102) Andaraí Empreendimentos Imobiliários Ltda 13, , Direcional Turquesa Empreendimentos Imobiliários Ltda 12, ,386-2, Flourita Empreendimentos Imobiliários Ltda 24,438 50,000 3,568 18,504 52,366 43,869 20,256 (963) 282 (1,453) 18,122 Ernst & Young Terco 38

41 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Balance sheet Income statements Assets Liabilities Net sales and Company Current Noncurrent Current Noncurrent Equity service revenues Gross profit Operating expenses, net Financial income Income taxes Net income Direcional Azeviche Empreendimentos Imobiliários Ltda Arinos Empreendimentos Imobiliários Ltda 10, , (779) (752) (594) (1) 17 (1,330) Direcional Assis Brasil Empreendimentos Imobiliários Ltda 339 6,560-6, Citrino Empreendimentos Imobiliários Ltda 337 9,595-9, Direcional Turmalina Empreendimentos Imobiliários Ltda 184 2, , (5) - - (5) SCP - Direcional Petrópolis (168) (8) (125) SCP - Direcional Ozias (34) (3,246) (41) (3,183) Seabra Empreendimentos Imobiliarios Ltda - A/C Consórcio Total Ville Porto Velho 63,913 4,365 50,430 7,494 10,354 36,588 9,932 (681) 133 (747) 8,637 Direcional Patrimar Maragogi Empreendimentos Imobiliarios Ltda (a) 11,257 4,839 8,035 3,255 4,806 11,301 4,038 (269) 351 (406) 3,714 SCP - Cidadão XI 17, , ,311 17,373 2, (114) 2,260 SCP - Pro Moradia II 34, , ,334 27,963 10,312 (43) 6 (137) 10,138 Capela Empreendimentos Imobiliários Ltda 11,400 1, ,625 1,401 (696) (138) (373) Direcional Porto Acre Empreendimentos Imobiliarios Ltda 6,817 3,731 2,190 4,034 4,324 7,168 2,215 (950) (1) (102) 1,162 Direcional Feijo Empreendimentos Imobiliarios Ltda (a) 3, ,300 1, (5) - - (5) Direcional Capixaba Empreendimentos Imobiliarios Ltda 21,004 (337) 2, ,819 20,514 10,781 (876) 20 (677) 9,248 SCP - Meu Orgulho 33, , , ,927 30,082 (5) 645 (816) 29,906 Andrade Valladares Residencial Ltda - SCP Floramar (a) 23,573 (1,265) 10, ,004 19,394 7,200 (618) 2 (393) 6,191 Geminiano Projeto 01 Empreendimentos Imobiliários Ltda 8, , Direcional Rio Branco Empreendimentos Imobiliários Ltda 4, , Direcional Santo Antônio Empreendimentos Imobiliários Ltda 23, , (375) 1 - (374) Direcional Arapiraca Empreendimentos Imobiliários Ltda 16, ,005 4, (19) - - (19) Direcional Xapuri Empreendimentos Imobiliários Ltda 13,151-12, Direcional São Miguel Empreendimentos Imobiliários Ltda 6,202-4,501-1, Ernst & Young Terco 39

42 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Balance sheet Income statements Assets Liabilities Net sales and Company Current Noncurrent Current Noncurrent Equity service revenues Gross profit Operating expenses, net Financial income Income taxes Net income Direcional Tarauaca Empreendimentos Imobiliários Ltda 23,434 6, ,991 17,411 33,322 14,624 (1,088) 52 (516) 13,072 Direcional Igaci Empreendimentos Imobiliários Ltda 7, , Direcional Cajueiro Empreendimentos Imobiliários Ltda 7, ,514 1, (6) - - (6) Direcional Riachos Empreendimentos Imobiliários Ltda 16,890-3,201 12, (1) - - (1) Direcional Alegre Empreendimentos Imobiliários Ltda ,912-22,000 3, Direcional Carneiros Empreendimentos Imobiliários Ltda 13, , Direcional Água Branca Empreendimentos Imobiliários Ltda 3,372 43,509 29,095 14,500 3, (1) - (1) Direcional Coruripe Empreendimentos Imobiliários Ltda 12, , (7) - - (7) SCP Alterosa - Ribeirão das Neves 14, , ,241 31,192 9,690 (180) 83 (174) 9,419 Direcional Leopoldina Empreendimentos Imobiliários Ltda 72 9, , Direcional Sena Madureira Empreendimentos Imobiliários Ltda - 16,190-16, Direcional Trincheiras Empreendimentos Imobiliários Ltda 7,995 9,361 5,356 8,009 3,991 4,621 1,964 (269) (1) (65) 1,629 Direcional Agua das Flores Empreendimentos Imobiliários Ltda 17, ,000 1, Direcional Estrela Empreendimentos Imobiliários Ltda - 7,000 7, Direcional Jequia Empreendimentos Imobiliários Ltda (6) - - (6) Direcional Palmeira Empreendimentos Imobiliários Ltda (26) - - (26) SCP Aterrado do Leme (a) 1, ,554 1, (6) 289 Empresa Direcional São Primiano Empreendimentos Imobiliarios Ltda 1, (28) - - (28) SCP 15 - Aterpa - Rio de Janeiro (a) 17, , ,778 - (544) (50) (113) - (707) SCP 16 - Patrimar Cl. Manoel (a) (30) - (14) (5) (27) - (46) SPE 25 - SPE Maura Gontijo (a) 1, (924) (279) 1,245 (300) (258) SPE - Rubelita Empreendimentos Imobiliarios Ltda (a) 11,974-2, ,064 1,808 (234) (52) - (225) (511) SPE 31 - Direcional Silvestre Ltda (a) 9, , ,179 5,633 1,728 (119) (80) (124) 1,405 SPE 34 - Alexandria Empreendimentos Imobiliarios Ltda (a) 10,834-1, ,122 3,284 3,288 (435) 32 (142) 2,743 Ernst & Young Terco 40

43 (Amounts expressed in Reais) 7. Investments in subsidiaries and jointly-controlled companies (individual financial information) - Continued Balance sheet Income statements Assets Liabilities Net sales and Company Current Noncurrent Current Noncurrent Equity service revenues Gross profit Operating expenses, net Financial income Income taxes Net income SPE 50 - Direcional Sodalita Empreendimentos (a) 2, , (1) - - (1) SPE 61 - Direcional Oiti Empreendimentos Imobiliarios Ltda (a) 1, , (196) (69) SPE 66 - Bom Sucesso Incorporação e Investimentos Imobiliários S.A. (a) 27,015-2,374-24, (8) - - (8) SPE 70 - Santa Margarida Empreendimentos Imobiliarios Ltda (a) 9,222-4,768-4, (5) (1) - (6) SPE 77 - Direcional Jordão Empreendimentos Imobiliarios Ltda (a) 1, , SPE 80 - Direcional Brasileia Empreendimentos Imobiliarios Ltda (a) 37, , ,823 27,709 8,666 (578) 24 (103) 8,009 Empresa 94 - Direcional Belo Monte Empreendimentos Imobiliários Ltda (a) Empresa Direcional SPL Ponciano Empreendimentos Imobiliarios Ltda (a) SCP 17 - V. Gontijo Cisão (a) (209) (125) 12-5 (108) SPE - Diresomattos Gutierrez Empreendimentos Imobiliarios Ltda (a) (2) (975) 1, (150) 102 SCP - Direcional/Somattos - Bartira Mourão (a) 1, , (31) 148 SCP - Direcional/Somattos - Tereza Motta Valadares (a) (411) 40 (14) (263) Ernane Agricola Empreendimentos Imobiliarios Ltda (a) 10, , ,357 3,693 (1,495) (138) (867) (a) These represent jointly-controlled entities Ernst & Young Terco 41

44 (Amounts expressed in Reais) 8. Property and equipment Changes in Company property and equipment in the period from and December 2011 are as follows: Company a. Breakdown Depreciation 3/31/2012 P&E, net at Description rates Cost Depreciation Net 12/31/2011 Machinery and equipment 10% 19,347 (2,428) 16,919 16,074 Furniture and fixtures 10% 773 (220) Land - 6,771-6,771 6,354 Vehicles 20% 832 (657) IT equipment 20% 1,609 (700) Other assets (72) ,483 (4,077) 25,406 24,178 b. Changes Cost Cost at 12/31/2011 Additions Writeoffs/transfers Cost at 3/31/2012 Land 6, (20) 6,771 Machinery and equipment 18,029 1,498 (180) 19,347 IT equipment 1, ,610 Vehicles Furniture and fixtures Other assets ,663 2,020 (200) 29,483 (-) Depreciation at 12/31/2011 Depreciation for the period (-) Depreciation at 3/31/2012 Depreciation Write-offs Furniture and fixtures (200) (19) - (219) Vehicles (640) (17) - (657) IT equipment (625) (76) - (701) Machinery and equipment (1,956) (472) - (2,428) Other assets (64) (8) - (72) (3,485) (592) - (4,077) Property and equipment, net 24,178 1,428 (200) 25,406 Ernst & Young Terco 2

45 (Amounts expressed in Reais) 8. Property and equipment (Continued) c. Changes in 2011 Cost Cost at 12/31/2010 Additions Writeoffs/transfers Cost at 12/31/2011 Land 5,740 1,714 (1,100) 6,354 Machinery and equipment 12,307 5,722-18,029 IT equipment 1, ,538 Vehicles Furniture and fixtures (1) 759 Other assets (5) ,907 7,862 (1,106) 27,663 Depreciation for the period (-) Depreciation at 12/31/2011 Depreciation (-) Depreciation at 12/31/2010 Write-offs Furniture and fixtures (165) (69) 34 (200) Vehicles (548) (403) 311 (640) IT equipment (470) (296) 141 (625) Machinery and equipment (824) (1,636) 504 (1,956) Other assets (312) (270) 518 (64) (2,319) (2,674) 1,508 (3,485) Property and equipment, net 18,588 5, ,178 Consolidated a. Breakdown Depreciation rates 3/31/2012 P&E, net at Cost Depreciation Net 12/31/2011 Description Machinery and equipment 10% 25,429 (3,523) 21,906 20,956 Furniture and fixtures 10% 2,503 (525) 1,978 1,951 Land - 6,771-6,771 6,354 Vehicles 20% 2,224 (1,261) 963 1,051 IT equipment 20% 3,017 (1,177) 1,840 1,807 Sales stand (a) 24,418 (12,247) 12,171 13,092 Other assets (210) ,059 (18,943) 46,116 45,662 Ernst & Young Terco 3

46 (Amounts expressed in Reais) 8. Property and equipment (Continued) b. Changes Cost Cost at 12/31/2011 Additions Write-offs / transfers Cost at 3/31/2012 Machinery and equipment 23,458 1,749 (180) 25,027 Furniture and fixtures 2, ,503 Land 6, (20) 6,771 Vehicles 2, ,224 IT equipment 2, (5) 3,018 Sales stand 22,489 2,073 (144) 24,418 Other assets 1, ,098 60,800 4,608 (349) 65,059 (-) Depreciation at 12/31/2011 Depreciation for the period Write-offs (-) Depreciation at 3/31/2012 Depreciation Machinery and equipment (2,899) (621) 3 (3,517) Furniture and fixtures (459) (62) 1 (520) Vehicles (1,158) (103) 1 (1,260) IT equipment (955) (143) 3 (1,095) Sales stand (9,396) (2,907) 58 (12,245) Other assets (271) (36) 1 (306) (15,138) (3,872) 67 (18,943) Property and equipment, net 45, (282) 46,116 (a) Sales stand are depreciated according to the flow of sales and expected sales of each project. Ernst & Young Terco 4

47 (Amounts expressed in Reais) 8. Property and equipment (Continued) c. Changes in 2011 Cost Cost at 12/31/2010 Additions Write-offs / transfers Cost at 12/31/2011 Machinery and equipment 16,733 7,060 (335) 23,458 Furniture and fixtures 1, (1) 2,415 Land 5,740 1,714 (1,100) 6,354 Vehicles 1, ,209 IT equipment 2, (2) 2,846 Sales stand 14,848 8,723 (1,082) 22,489 Other assets (9) 1,029 43,688 19,641 (2,529) 60,800 Depreciation (-) Depreciation at 12/31/2010 Depreciation for the period Write-offs (-) Depreciation at 12/31/2011 Machinery and equipment (1,346) (2,097) 544 (2,899) Furniture and fixtures (290) (243) 74 (459) Vehicles (848) (669) 359 (1,158) IT equipment (661) (439) 145 (955) Sales stand (5,560) (4,052) 216 (9,396) Other assets (353) (441) 523 (271) (9,058) (7,941) 1,861 (15,138) Property and equipment, net 34,630 11,700 (668) 45,662 (a) Sales stand are depreciated according to the flow of sales and expected sales of each project. The Company and its subsidiaries have entered into 9 financial lease agreements and 12 Machinery and Equipment Financing (FINAME) agreements, relating to machinery, equipment and vehicles. The book value of property and equipment held under finance lease commitments at March 31, 2012 was R$15,325 (R$14,008 at December 31, 2011). Items were added to property and equipment and the Finame financing, amounting to R$1,317, was guaranteed through chattel mortgage of the assets that were object of referred to agreements. Ernst & Young Terco 5

48 (Amounts expressed in Reais) 9. Loans and financing Company Consolidated Financing for Construction 3/31/ /31/2011 3/31/ /31/2011 Jonasa Empreendimentos Imobiliários Ltda ,010 70,658 Direcional Taguatinga Engenharia Ltda ,045 46,019 Direcional Âmbar Empreendimentos Imobiliários Ltda ,543 44,066 Direcional Safira Empreendimentos Imobiliários Ltda ,760 26,604 Direcional Diamante Empreendimentos Imobiliários Ltda ,157 26,193 Direcional TSC Rio Madeira Empreendimentos Imobiliários Ltda ,708 26,124 Ônix Empreendimentos Imobiliários Ltda ,445 18,254 Direcional Rubi Empreendimentos Imobiliários Ltda ,141 17,555 Flourita Empreendimentos Imobiliários Ltda ,361 14,818 Direcional TSC Jatuarana Empreendimentos Imobiliários Ltda ,382 14,248 Direcional Opala Empreendimentos Imobiliários Ltda ,183 12,110 Direcional TSC Jamari Empreendimentos Imobiliários Ltda ,504 11,029 Alexandrita Empreendimentos Imobiliários Ltda ,699 9,840 Seabra Empreendimentos Imobiliários Ltda - Total Ville Porto Velho ,695 9,645 Bujari Empreendimentos Imobiliários Ltda ,780 9,302 SPE - Direcional Brasileia Empreendimentos Imobiliários Ltda ,961 7,996 Direcional Engenharia S.A. - SCP Club House - - 7,690 7,898 SCP - Direcional/DAN/Gontijo Fernandes - Jacundá - - 3,737 7,550 Direcional Esmeralda Empreendimentos Imobiliários Ltda ,436 7,331 SCP - Direcional/ACR - Paradiso - - 5,900 7,078 SPE - Direcional Silvestre Ltda - - 5,138 3,779 Direcional Construtora Valparaíso Ltda ,905 Direcional Patrimar Maragogi Empreendimentos Imobiliários Ltda - - 4,106 2,778 Una Empreendimentos Imobiliários Ltda - - 2,432 2,432 SCP - Aterpa - Rio de Janeiro SPE - Rubelita Empreendimentos Imobiliários Ltda Ernane Agricola Empreendimentos Imobiliários Ltda Direcional Abaré Empreendimentos Imobiliários Ltda - - 2,843 - Direcional Capixaba Empreendimentos Imobiliarios Ltda , , ,563 Securitization Direcional Engenharia S.A. - Plaza das Águas SCP - Direcional/ACR - Lago - Lake View ,040 31, ,080 31,847 FINAME and finance leasing for equipment Direcional Engenharia S.A. 4,588 4,205 4,588 4,205 Direcional Engenharia S.A. 8,183 8,871 8,183 8,871 Direcional Engenharia S.A ,707 13,076 13,707 13,076 Working capital Direcional Engenharia S.A. 20,034 20,666 20,034 20,666 20,034 20,666 20,034 20,666 33,781 33, , ,152 Current 4,462 4, , ,903 Non-current 29,319 28, , ,249 Company loans and financing fall into four major categories, which are: Financing for Construction: This type of loan is designed to fund projects during their construction. Interest rates applicable range from 8.3% to 12% p.a., depending on the operation, plus restatement by the Referential Rare (TR). These transactions are secured by mortgages of respective projects real estate; Ernst & Young Terco 6

49 (Amounts expressed in Reais) 9. Loans and financing (Continued) FINAME and Leasing: The purpose of these types of loan is to finance investments in machinery and equipment. Interest rates applicable are: (i) for FINAME, depending on the operation, fixed interest from 4.5% to 8.7% p.a. or variable interest indexed based on the Long-term Interest Rate (TJLP) variation or the Interest Rate set forth by Provisional Executive Order No. 462 (TJ 462) ranging from 2.94% to 6.0% p.a. and (ii) for Leasing, depending on the operation, fixed interest from 13.79% to 14.93% p.a. or variable interest indexed by CDI variation of 2.55% p.a. These operations are guaranteed by the machinery and equipment items purchased with these loans; Working capital: The purpose of this type of loan is to finance Company working capital requirements. The interest rate applicable to this type of loan is the CDI plus 1.75% p.a. Securitization of Receivables: In June 2010, the Company took out mortgage-backed securities for Lake View Resort project from the Companhia Brasileira de Securitização (CIBRASEC). In this operation, the Company securitized 176 contracts totaling R$54,314. The receivables assigned were adjusted by the National Index of Civil Construction (INCC) until the certificate of occupancy was granted in June/2011, and by the General Market Price Index published by Getúlio Vargas Foundation (IGP-M ) + 12% p.a. onwards until maturity. The outstanding debt balance of the operation will be adjusted by the IGP-M + 12% p.a. until maturity. The Company is jointly liable for and will be the principal payer of all obligations assumed in this transaction and shall remain jointly liable until actual receipt by CIBRASEC of the full amount securitized. Accordingly, the Company did not write off the accounts receivable relating to the securitized project. Company non-current loans have the following aging list: Period 3/31/ /31/2011 April/13 to March/14 24,390 23,728 April/14 to March/15 3,333 3,087 April/15 to March/16 1,380 1,859 From April/ ,319 28,967 Company non-current consolidated loans have the following aging list: Period 3/31/ /31/2011 April/13 to March/14 178, ,098 April/14 to March/15 75,537 39,374 April/15 to March/16 5,486 5,580 From April/16 18,404 20, , ,249 Ernst & Young Terco 7

50 (Amounts expressed in Reais) 10. Labor liabilities Company Consolidated Description 3/31/ /31/2011 3/31/ /31/2011 Salaries payable ,788 7,891 Charges payable 2,026 1,428 8,295 7,762 Accrued vacation pay 2,557 2,426 12,628 10,317 Profit sharing 7,005 4,930 12,523 8,947 Other ,505 9,679 42,258 34, Tax liabilities Company Consolidated Description 3/31/ /31/2011 3/31/ /31/2011 Corporate Income Tax (IRPJ) ,256 21,580 Social Contribution Tax on Net Profit (CSLL) ,243 11,289 Social Contribution Tax on Gross Revenue for 79 Social Integration Program (PIS) 102 7,023 6,715 Social Contribution Tax on Gross Revenue for 365 Social Security Financing (COFINS) ,331 29,352 Other ,474 4, ,327 73,179 Current ,408 58,547 Non-current ,919 14, Real estate commitments payable Accounts payable arising from the acquisition of land for real estate development, as follows: Consolidated Company 3/31/ /31/2011 Zircone Empreendimentos imobiliários Ltda 40,408 37,945 Direcional Safira Empreendimentos imobiliários Ltda 20,917 22,494 Direcional Água Marinha Empreendimentos Imobiliários Ltda 19,105 21,275 Direcional Rio Branco Empreendimentos Imobiliários Ltda 18,627 3,900 Direcional Água Branca Empreendimentos Imobiliários Ltda 15,237 17,490 Seabra Empreendimentos imobiliários 9,202 9,221 Direcional Riachos Empreendimentos Imobiliários Ltda 8,000 8,000 Direcional Abaré Empreendimentos Imobiliários Ltda 7,321 5,543 Direcional Anadia Empreendimentos Imobiliários Ltda 6,609 5,370 Direcional Âmbar Empreendimentos imobiliários Ltda 1,856 1,856 Direcional Santa Rosa Empreendimentos Imobiliários Ltda 800 1,100 Other 8,757 9, , ,514 Current 34,288 32,848 Non-current 122, ,666 Ernst & Young Terco 8

51 (Amounts expressed in Reais) 13. Advance from customers These refer to (i) a commitment to deliver finished, completed real estate units purchased through barter of land to be developed; (ii) advances from customers deriving from sales of real estate units. Consolidated Advances from customers physical barter of land (i) 3/31/ /31/2011 Direcional Alegre Empreendimentos Imobiliários Ltda 14,863 22,000 Direcional Taguatinga Engenharia Ltda. 26,001 16,290 Direcional Sena Madureira Empreendimentos Imobiliários Ltda 15,495 16,190 Direcional Agua das Flores Empreendimentos Imobiliários Ltda 16,000 16,000 Direcional Construtora Valparaíso Ltda. 15,476 15,476 Direcional Carneiros Empreendimentos Imobiliários Ltda 6,923 13,846 Direcional Trincheiras Empreendimentos Imobiliários Ltda 12,901 13,096 Direcional Xapuri Empreendimentos Imobiliários Ltda 13,810 12,797 Direcional Arapiraca Empreendimentos Imobiliários Ltda 10,393 12,005 Direcional Coruripe Empreendimentos Imobiliários Ltda 12,000 12,000 Direcional Tarauaca Empreendimentos Imobiliários Ltda 11,292 11,474 Direcional Ametista Empreendimentos imobiliários Ltda 5,724 10,967 Ônix Empreendimentos Imobiliários Ltda 9,426 10,214 Direcional Leopoldina Empreendimentos Imobiliários Ltda 9,619 9,619 Citrino Empreendimentos Imobiliários Ltda 9,595 9,595 Arinos Empreendimentos Imobiliários Ltda 9,385 9,385 Direcional Santa Rosa Empreendimentos Imobiliários Ltda 10,400 7,500 Direcional Cajueiro Empreendimentos Imobiliários Ltda 6,514 6,514 Direcional Azurita Empreendimentos imobiliários Ltda 14,941 14,884 Andrade Valladares Residencial Ltda - SCP Floramar 5,053 5,166 Direcional Rubi Empreendimentos imobiliários Ltda 3,718 4,430 Coral Empreendimentos imobiliários Ltda 3,600 3,600 Direcional Âmbar Empreendimentos imobiliários Ltda 3,012 3,339 Direcional Assis Brasil Empreendimentos Imobiliários Ltda 3,280 3,280 Direcional Porto Acre Empreendimentos imobiliários Ltda 5,594 5,737 Direcional Esmeralda Empreendimentos imobiliários Ltda 3,255 4,128 Direcional Campinas Engenharia Ltda. 1,620 1,621 Direcional Patrimar Maragogi Empreendimentos imobiliários Ltda 456 1,444 SPE 80 - Direcional Brasileia Empreendimentos imobiliários Ltda Direcional Palmeira Empreendimentos Imobiliários Ltda 8,100 - Other 369 1, , ,494 Advances from customers receipt (ii) Direcional Rubi Empreendimentos Imobiliários Ltda Una Empreendimentos Imobiliários Ltda - 2 SPE 61 - Direcional Oiti Empreendimentos imobiliários Ltda 12 - SCP - Direcional/Somattos - Bartira Mourão 27 - SPE 80 - Direcional Brasileia Empreendimentos Imobiliários Ltda , ,108 Current 88,352 74,715 Non-current 181, ,393 Ernst & Young Terco 9

52 (Amounts expressed in Reais) 14. Accounts payable Company Consolidated Description 3/31/ /31/2011 3/31/ /31/2011 Payables to customers 8,284 8,439 8,655 8,821 Payables to partners (a) ,300 44,300 Payables to legal entities 1, ,754 14,111 Accounts payable for equity investments acquired 26,763 30,089 27,363 30,689 Other 1,104 1,068 13,416 10,438 37,639 40,146 98, ,359 Current 20,617 23,124 81,466 91,337 Non-current 17,022 17,022 17,022 17,022 (a) On April 20, 2011, the Company entered into a commercial agreement with an investing partner, relating to the development of 4 land units located in the Federal District (DF) in exchange for R$44,300 received in cash. 15. Provision for tax, civil and labor 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 on the opinion of its legal advisors, the Company recorded a provision in an amount deemed sufficient to cover any losses for those cases whose likelihood of loss is estimated as probable. At, these provision amounts were as follows: Company Consolidated Tax Labor Civil Total Tax Labor Civil Total Balance at December 31, ,040 1,599 4,549 Provision for the period , ,573 Reversal for the period (78) (2) - (78) (910) (238) (404) (1,552) Balances at ,930 1,640 4,570 The Company is involved in other legal proceedings of a tax, civil and labor nature arising in the normal course of business, whose likelihood of loss, in the opinion of Company management and its legal advisors, is assessed as possible in the amounts of approximately R$1,983 for labor, R$426 for tax and R$3.999 for civil proceedings, at. As such, these proceedings were not subject to the establishment of provisions to cover any losses deriving from an unfavorable outcome. Ernst & Young Terco 10

53 (Amounts expressed in Reais) 16. Equity Common Stock On January 19, 2012, the Board of Directors approved an increase in Company capital in the amount of R$472, through issue of 394,017 shares at an issue price of R$1.20 per share, as set under Program I - Grant of Stock Options. After these shares were issued, Company capital increased to R$497,158, represented by 155,298,749 common shares. Company authorized capital on the date of disclosure of the financial statements is R$1,200, Capital reserves Capital reserve through issue of shares As discussed in Note 1, in 2011 the Company held a public offering, in which the unit value per share was R$11.00, totaling R$308,000 gross, R$228,802 of which relating to the primary offering. The Board of Directors determined that R$57,200 of this total amount be transferred to the Capital reserve account through issue of shares Capital reserve through the granting of stock options Income reserve As discussed in Note 21, the Company recognizes in this account the services received in exchange for the stock options granted. Upon exercise of these stock options, the reserve is transferred to retained earnings Legal reserve The legal reserve was set up at 5% of the net income for the year, up to the limit of 20% of capital or of 30% of capital considering the legal reserve plus the capital reserve, under the terms of Corporate Law Retained profit reserve This reserve is set up especially for the purpose of maintaining Company investment capacity and the performance of work in progress. Ernst & Young Terco 11

54 (Amounts expressed in Reais) 16. Equity (Continued) Distribution of dividends The shareholders are entitled to annual dividends of at least 25%, calculated based on net income, adjusted by the capital reserve variations, as required by Brazilian Corporation Law. 12/31/2011 Net income for the year 175,216 Legal reserve (5%) (8,761) Net income to be distributed 166,456 Dividends proposed by the Company 41,614 Mandatory minimum dividend (25%) (41,614) Dividends proposed in excess of mandatory minimum dividend - Dividends per share Earnings per share The Company calculates earnings per share using the weighted average number of total common shares outstanding in the period corresponding to P&L, pursuant to Technical Pronouncement CPC 41 (IAS 33). Detailed information on the calculation of earnings per share for the period ended and 2011 is as under: Basic earnings per share 3/31/2012 3/31/2011 Numerator: Net income for the year 51,133 39,680 Denominator: Weighted average number of shares 153,569, ,962,718 Basic and diluted earnings per share - R$ Diluted earnings per share Numerator: Net income for the year 51,133 39,680 Denominator: Weighted average number of shares 153,569, ,962,718 Adjustment for stock option (1) 2,148,187 4,882,694 Weighted average number of shares (diluted) 155,717, ,845,412 Basic and diluted earnings per share - R$ This is represented by in-the-money outstanding options, as per the stock option plan set out in Note 24. Ernst & Young Terco 12

55 (Amounts expressed in Reais) 17. Real estate development operations Operating revenue, net Consolidated Description 3/31/2012 3/31/2011 Gross sales revenue 241, ,206 Gross service revenue 98,046 56,755 Total gross revenue 339, ,961. Sales taxes (11,909) (4,918) Operating revenue, net 327, , Appropriated profit/loss relating to real estate sales (consolidated) Revenues from units sold 3/31/2012 3/31/2011 Revenues (-) Cost of from units units sold sold (-) Cost of units sold Description Direcional Taguatinga Engenharia Ltda. 51,135 (30,404) 20,664 (14,139) SCP - Meu Orgulho 34,325 (24,618) 29,155 (20,521) SCP Alterosa - Ribeirão das Neves 20,446 (14,462) 416 (308) SCP Bairro Carioca 19,641 (14,509) - - Ônix Empreendimentos Imobiliários Ltda 17,545 (11,995) 14,795 (10,183) Zircone Empreendimentos imobiliários Ltda 16,689 (11,502) 5,082 (3,033) Direcional Rubi Empreendimentos imobiliários Ltda 13,474 (10,377) 6,066 (4,263) Seabra Empreendimentos imobiliários Ltda - 12,291 (7,982) 4,783 (3,345) Jonasa Empreendimentos Imobiliários Ltda. 12,127 (14,372) 29,056 (16,849) Direcional Ametista Empreendimentos imobiliários Ltda 9,844 (3,160) - - Capela Empreendimentos Imobiliários Ltda 9,119 (8,310) - - SCP Direcional/Comim Meu Orgulho - Infra 9,065 (9,509) 9,441 (4,999) Direcional Capixaba Empreendimentos imobiliários Ltda 8,707 (3,981) 1,381 (707) Flourita Empreendimentos Imobiliários Ltda 8,395 (5,549) 7,786 (4,265) Ernst & Young Terco 13

56 (Amounts expressed in Reais) 17. Real estate development operations (Continued) Appropriated profit/loss relating to real estate sales (consolidated) - Continued Revenues from units sold 3/31/2012 3/31/2011 Revenues (-) Cost of from units units sold sold (-) Cost of units sold Description Direcional Diamante Empreendimentos Imobiliarios Ltda 6,528 (3,116) 9,516 (7,162) SCP - Pro Moradia II 6,459 (4,208) 6,066 (4,296) SPE 31 - Direcional Silvestre Ltda 6,196 (4,461) 194 (102) SPE 80 - Direcional Brasileia Empreendimentos imobiliários Ltda 5,843 (4,565) 1,760 (1,293) Direcional Palmeira Empreendimentos Imobiliários Ltda 5,698 (4,169) - - Direcional Âmbar Empreendimentos imobiliários Ltda 5,623 (3,953) 11,894 (9,920) Direcional Safira Empreendimentos imobiliários Ltda 5,377 (2,507) 12,688 (7,586) Direcional Trincheiras Empreendimentos Imobiliários Ltda 4,488 (2,484) - - Una Empreendimentos imobiliários Ltda 4,227 (2,290) 2,886 (1,244) Direcional Abaré Empreendimentos Imobiliários Ltda 3,817 (2,513) 1,077 (159) Direcional TSC Jatuarana Empreendimentos imobiliários Ltda 3,117 (4,417) 5,218 (3,639) Direcional Patrimar Maragogi Empreendimentos imobiliários Ltda 3,069 (1,091) 1,273 (561) SCP - Direcional/DAN/Gontijo Fernandes - Jacundá 2,679 (1,358) 5,581 (4,945) Bujari Empreendimentos imobiliários Ltda 2,633 (2,897) 3,202 (2,428) SCP - Direcional/ASCC/Diedro- Eliza Miranda 2,612 (1,172) 2,859 (1,042) Andrade Valladares Residencial Ltda - SCP Floramar 2,208 (1,238) - - SCP Aterrado do Leme 2,036 (1,401) - - SCP - Direcional/ACR - Lago 1,910 (1,202) 1,521 (1,627) Alexandrita Empreendimentos imobiliários Ltda 1,852 (2,421) 3,246 (2,526) Direcional Corretora de Imóveis S.A. 1,412 (139) 1,217 - Direcional Azurita Empreendimentos imobiliários Ltda 1,327 (1,008) - - Direcional Engenharia S.A. 1, ,856 - Direcional Tarauaca Empreendimentos Imobiliários Ltda 1,210 (767) - - Direcional TSC Rio Madeira Empreendimentos imobiliários Ltda 1,196 (2,421) 6,694 (8,087) SCP - Cidadão XI 1,191 (2,616) 5,071 (4,200) Direcional Opala Empreendimentos imobiliários Ltda 1,134 (1,178) 4,116 (3,547) Direcional Porto Acre Empreendimentos imobiliários Ltda 1,052 (721) - - SCP Macapá 881 (536) - - SCP Boa Casa 812 (1,465) 228 (370) SCP - Direcional/Eólica - Retiro dos Artistas 635 (174) 93 (143) Ernst & Young Terco 14

57 (Amounts expressed in Reais) 17. Real estate development operations (Continued) Appropriated profit/loss relating to real estate sales (consolidated) - Continued Description 3/31/2012 3/31/2011 Revenues Revenues from units sold (-) Cost of units sold from units sold (-) Cost of units sold SCP - Direcional/ACR - Paradiso 396 (643) 1,595 (548) SCP - Direcional/SPL - Campinas 325 (82) 244 (463) SCP 15 - Aterpa - Rio de Janeiro 236 (84) - (13) SPE 61 - Direcional Oiti Empreendimentos imobiliários Ltda 214 (27) 3,306 (3,112) Direcional Engenharia S.A. - SCP Club House 148 (368) 3,939 (1,792) Direcional TSC Jamari Empreendimentos imobiliários Ltda 134 (758) 2,480 (3,734) Other (1,013) (650) 6,135 (7,985) 339,406 (239,842) 238,961 (168,439) 17.3 Expenses by nature The Company elected to present the consolidated income statements by function. Detailed information by nature is as under: Consolidated Description 3/31/2012 3/31/2011 Raw material, inputs and consumer and in-use materials (241,180) (168,439) Personnel expenses (14,404) (14,350) Depreciation and amortization (3,872) (1,279) Third-party services (3,607) (3,063) Electric energy, water and telephone services (372) (466) Selling and general expenses (4,001) (2,573) Sales commissions (540) (1,784) Other (7,602) (8,741) (275,578) (200,695) Classified as Cost of real estate sold (165,806) (128,235) Costs of services rendered (74,036) (40,204) Selling expenses (8,588) (4,997) General and administrative expenses (27,148) (27,259) (275,578) (200,695) Ernst & Young Terco 15

58 (Amounts expressed in Reais) 17. Real estate development operations (Continued) Contracted real estate sales (consolidated) The budgeted costs to be incurred referring to the sale of units under construction, and unearned revenue from real estate sales, relating to projects in progress not recorded in the financial statements are as follows: Contracted sales to be incurred 3/31/2012 3/31/2011 Construction commitments to Contracted be incurred for sales to be contracted sales incurred Construction commitments to be incurred for contracted sales Project SCP - Direcional/ASCC/Diedro-Eliza Miranda - 5 th Phase 6,089 (5,399) 6,886 (4,921) SCP - Direcional/ASCC/Diedro-Eliza Miranda - 2 nd Phase - - 2,467 (189) SCP - Direcional/DAN/Gontijo Fernandes - Jacundá - 2 nd Phase - - 1,599 (1,049) Direcional Taguatinga Engenharia Ltda. 6 th Phase 29,192 (16,009) 33,670 (20,120) Direcional Taguatinga Engenharia Ltda. 5 th Phase 25,116 (18,692) 19,128 (15,206) Direcional Taguatinga Engenharia Ltda. - 8th Phase 15,075 (7,883) - - Direcional Taguatinga Engenharia Ltda. - 5 th Phase 11,759 (6,517) 26,391 (17,159) Direcional Taguatinga Engenharia Ltda. - 4 th Phase 6,846 (3,939) 23,438 (14,428) Direcional Taguatinga Engenharia Ltda. - 3 rd Phase 2,072 (970) 23,857 (12,595) Direcional Taguatinga Engenharia Ltda. - 1 st Phase - - 2,130 (1,281) Direcional Taguatinga Engenharia Ltda. - 2 nd Phase ,457 (6,838) Direcional Construtora Valparaíso Ltda. - 1 st Phase (516) Jonasa Empreendimentos Imobiliários Ltda. - 2 nd Phase 15,369 (11,843) 42,857 (22,836) Jonasa Empreendimentos Imobiliários Ltda. - 1 st Phase ,099 (11,431) Direcional Diamante Empreendimentos Imobiliarios Ltda - 3 rd Phase 21,404 (12,405) - - Direcional Diamante Empreendimentos Imobiliarios Ltda - 2 nd Phase 1,975 (1,160) 13,768 (8,383) Direcional Diamante Empreendimentos Imobiliarios Ltda - 1 st Phase ,264 (7,528) Direcional Ametista Empreendimentos Imobiliarios Ltda - 1 st Phase 15,384 (7,562) - - Direcional Ametista Empreendimentos Imobiliarios Ltda - 2 nd Phase 6,854 (2,481) - - Direcional Opala Empreendimentos Imobiliarios Ltda - 1 st Phase 650 (701) 3,384 (2,294) Direcional Opala Empreendimentos Imobiliarios Ltda - 1 st Phase - - 9,585 (5,535) Direcional Esmeralda Empreendimentos Imobiliarios Ltda - 1 st Phase 38,789 (20,607) 27,974 (15,451) Ernst & Young Terco 16

59 (Amounts expressed in Reais) 17. Real estate development operations (Continued) Contracted real estate sales (consolidated) - Continued Contracted sales to be incurred 3/31/2012 3/31/2011 Construction commitments to Contracted be incurred for sales to be contracted sales incurred Construction commitments to be incurred for contracted sales Project Direcional Safira Empreendimentos Imobiliarios Ltda - 2 nd Phase 3,138 (1,675) 8,148 (5,059) Direcional Safira Empreendimentos Imobiliarios Ltda - 1 st Phase ,293 (5,871) Direcional Rubi Empreendimentos Imobiliarios Ltda - 1 st Phase 30,137 (15,383) 12,620 (6,886) Direcional Rubi Empreendimentos Imobiliarios Ltda - 1st Phase 19,003 (11,891) 41,514 (24,548) Direcional Rubi Empreendimentos Imobiliarios Ltda - 3 rd Phase 5,299 (9,192) 3,724 (2,871) Direcional Âmbar Empreendimentos Imobiliarios Ltda - 2 nd Phase ,486 (11,851) Direcional TSC Rio Madeira Empreendimentos Imobiliarios Ltda - 1 st Phase - - 8,908 (7,031) Direcional TSC Jamari Empreendimentos Imobiliarios Ltda - 1 st Phase - - 6,270 (4,113) Direcional TSC Jatuarana Empreendimentos Imobiliarios Ltda - 1 st Phase - - 8,686 (5,816) Ônix Empreendimentos Imobiliários Ltda - 4 th Phase 41,607 (25,659) - - Ônix Empreendimentos Imobiliários Ltda - 3 rd Phase 6,492 (4,467) 29,066 (18,832) Ônix Empreendimentos Imobiliários Ltda - 4 th Phase 2,687 (2,053) - - Ônix Empreendimentos Imobiliários Ltda - 1 st Phase - - 7,376 (5,263) Ônix Empreendimentos Imobiliários Ltda 5 th Phase ,951 (8,786) Una Empreendimentos Imobiliarios Ltda - 1 st Phase 35,566 (15,070) 44,540 (18,956) Alexandrita Empreendimentos Imobiliarios Ltda - 1 st Phase ,221 (8,355) Bujari Empreendimentos Imobiliarios Ltda - 1 st Phase ,804 (9,343) Zircone Empreendimentos Imobiliarios Ltda - 1 st Phase 87,367 (52,350) 72,399 (42,498) Zircone Empreendimentos Imobiliarios Ltda - 2 nd Phase 44,405 (26,847) 36,360 (20,954) Direcional Azurita Empreendimentos Imobiliarios Ltda - 2 nd Phase 20,967 (11,995) - - Direcional Abaré Empreendimentos Imobiliários Ltda - 1 st Phase 30,110 (17,139) 1,121 (652) Flourita Empreendimentos Imobiliários Ltda - 1 st Phase 17,383 (8,376) 34,716 (17,923) Arinos Empreendimentos Imobiliários Ltda - 1 st Phase - - 7,899 (4,437) Ernst & Young Terco 17

60 (Amounts expressed in Reais) 17. Real estate development operations (Continued) Contracted real estate sales (consolidated) - Continued Contracted sales to be incurred 3/31/2012 3/31/2011 Construction commitments to Contracted be incurred for sales to be contracted sales incurred Construction commitments to be incurred for contracted sales Project Seabra Empreendimentos Imobiliarios Ltda - A/C Consórcio Total Ville Porto Velho - 2 nd Phase 34,455 (19,470) 23,364 (13,958) Seabra Empreendimentos Imobiliarios Ltda - A/C Consórcio Total Ville Porto Velho - 1 st Phase ,071 (21,344) Direcional Patrimar Maragogi Empreendimentos Imobiliarios Ltda - 1 st Phase 13,943 (6,730) 18,141 (8,242) SCP - Cidadão XI - 1 st Phase ,944 (18,049) SCP - Pro Moradia II - 1 st Phase 64,765 (41,429) 104,965 (72,095) Direcional Porto Acre Empreendimentos Imobiliarios Ltda - 1 st Phase 15,425 (10,359) - - Direcional Capixaba Empreendimentos Imobiliarios Ltda - 1 st Phase 44,515 (18,880) 66,223 (28,632) SCP - Meu Orgulho - 2 nd Phase 231,094 (140,923) - - SCP - Meu Orgulho - 1 st Phase ,611 (83,523) Andrade Valladares Residencial Ltda - SCP Floramar - 1 st Phase 42,300 (23,748) - - SCP Direcional/Comim Meu Orgulho - Infra - 2 nd Phase 30,303 (30,469) - - SCP Direcional/Comim Meu Orgulho - Infra - 1 st Phase ,821 (16,537) Direcional Tarauaca Empreendimentos Imobiliários Ltda - 1 st Phase 24,296 (13,080) - - SCP Boa Casa - 1 st Phase 2,075 (3,658) 4,723 (7,709) SCP Alterosa - Ribeirão das Neves - 1 st Phase 19,875 (13,688) 71,251 (52,768) SCP Bairro Carioca - 1 st Phase 72,984 (52,369) - - Direcional Trincheiras Empreendimentos Imobiliários Ltda - 1 st Phase 44,406 (23,622) - - Direcional Palmeira Empreendimentos Imobiliários Ltda - 1 st Phase 11,126 (8,008) - - SCP Aterrado do Leme - 1 st Phase 71,162 (49,911) - - SCP Macapá - 1 st Phase 126,799 (76,574) - - Direcional Brasileia Empreendimentos Imobiliarios Ltda 31,814 (22,154) 9,441 (6,723) Direcional Silvestre Ltda 12,305 (8,386) 6,594 1,901 1,434,377 (881,723) 1,190,950 (725,484) Ernst & Young Terco 18

61 (Amounts expressed in Reais) 18. Financial income/expenses Company Consolidated Financial expenses 3/31/ /31/2011 3/31/ /31/2011 Interest expense (1,292) (1,362) (1,660) (1,904) Bank expenses (85) - (753) - Monetary losses - - (162) (1) (1,377) (1,362) (2,575) (1,905) Financial income Income from short-term investments 3,111 5,958 6,726 6,994 Monetary restatement and contractual interest 3,430 1,208 4,182 1,588 6,541 7,166 10,908 8,582 Financial income/expenses 5,164 5,804 8,333 6, Income taxes Breakdown of income and social contribution tax expenses for the periods ended and December 31, 2011 shows the timing difference between the cash basis of accounting, used by the SCPs and SPEs, which are taxed based on taxable profit computed as a percentage of gross revenue and on the Special Taxation Basis (RET), and the tax provision on trade accounts receivable. A summary of this difference is as follows: Company Consolidated 3/31/2012 3/31/2011 3/31/2012 3/31/2011 Income before income and social contribution taxes 51,133 39,680 60,808 45,620 IRPJ and CSLL at 34% (17,385) (13,491) (20,675) (15,511) Equity income 24,489 16, Unrecognized temporary differences (7,104) (2,997) (7,104) (2,997) Net effect of subsidiaries taxed under RET or presumed profit ,605 13,882 IRPJ and CSLL expense - - (8,174) (4,626) The Company (controlling shareholder) has a balance of income and social contribution tax losses in the amount of R$34,422 (R$20,190 at December 31, 2011), on which no deferred tax assets were recorded, since there is no expected realization through future taxable profits due to the Company s characteristic as a holding company. Due to the taxation basis adopted by the SCPs and SPEs (presumed profit or the RET), these entities do not present temporary differences. Ernst & Young Terco 19

62 (Amounts expressed in Reais) 20. Financial instruments The Company and its subsidiaries enter into transactions involving financial instruments to fund their activities or invest their funds available. These risks are managed by setting conservative strategies aimed at liquidity, profitability and safety. The control policy consists of actively monitoring the agreed-upon rates vis-à-vis market-observable rates. Financial instruments usually taken out by Direcional and its subsidiaries are those recorded under Cash and cash equivalents, as well as financing for construction of real estate projects and purchase of machinery and equipment. The Company did not operate with derivatives in the period from to December 2011.The book value of financial instruments at balance sheet 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 interest rate risk, substantially the CDI rate variation, which remunerates its financial investments contracted in Reais (R$), interest on loans taken out from the National Housing System (SFH) pegged to the Referential Rate (TR), interest on loans for purchase of machinery and equipment from BNDES (FINAME) pegged to the TJLP and TJ462, CDI-pegged interest on loans as a source of working capital, and interest on securitization of receivables pegged to the IGP-M. Liquidity risk Company manages liquidity risk based on cash flow, seeking to maintain funds available at a level sufficient to meet its short-term needs. Currency risk At, the Company had no debts or receivables denominated in foreign currency. Additionally, none of Company significant costs is denominated in foreign currency. Ernst & Young Terco 20

63 (Amounts expressed in Reais) 20. Financial instruments (Continued) Credit risk Financial instruments that potentially subject the Company to credit risk concentration primarily consist of bank balances, short-term investments and trade accounts receivable. The Company restricts its exposure to credit risks regarding banks and short-term investments, placing its investments with first-tier financial institutions. With respect to trade accounts receivable, the Company limits its exposure to credit risk through sales to a broad client base and continuous credit analysis. At, there was no significant concentration of credit risk associated with customers. Trade accounts receivable are secured by chattel mortgages on corresponding real estate. Fair value of financial instruments The book value of financial instruments, mainly represented by short-term investments and financing agreements are presented in the balance sheets at amounts that approximate market value for similar operations. The fair value used for recording short-term investments was determined based on prices quoted in active markets for similar operations and falls into level 1 of the fair value hierarchy. Sensitivity analysis The Company and its subsidiaries should present a sensitivity analysis for each type of market risk deriving from financial instruments and deemed relevant by management, which the Company is exposed to at each year-end date. Since the Company has no derivative financial instruments, exposure only takes place with respect to changes in floating rates that affect both financial income from short-term investments and financial expenses from loans. Therefore, the financial instruments of Company and subsidiaries under Assets are free from significant risk since they are remunerated at the CDI rate, and loans and financing are tied to changes in TR plus fixed spread, in the case of financing for production (SFH), to the variation in TJLP plus fixed spread, in the case of funding for equipment acquisition through BNDES (FINAME), to the CDI, in the case of loans for working capital purposes, and to the IGP-M for securitization of receivables. In order to conduct its sensitivity analysis, the Company used market projections for The positive and negative impacts are as follows: Ernst & Young Terco 21

64 (Amounts expressed in Reais) 20. Financial instruments (Continued) Sensitivity analysis (Continued) Increase/reduction in percentages Effect on income before taxes -25% 4,097 25% -4,097 Business risk management Risk control system In order to efficiently manage its risk, the Company holds 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 projects as a whole, as well as the maximum cash exposure required. Maximum cash exposure control The risk control system monitors future cash requirements to deliver projects scheduled in Company portfolio, based on the economic feasibility study of each project, as well as on the need for individual cash flows in relation to the projected cash flow of projects as a whole. This projection helps define the strategy for financing and decision-making in regard to project selection. Demand risk management Through market knowledge and local partners insights, Direcional can identify the demand for new projects in different regions, as well as the income bracket of prospect buyers to be served. Launches are defined in terms of the potential each region has to absorb a certain number of property units and respond to price changes. The Company is not set on working in markets about which there is no reliable data available for market potential analysis, and thus believes that the demand risk referring to its launches is reduced. Ernst & Young Terco 22

65 (Amounts expressed in Reais) 20. Financial instruments (Continued) Operational risks Operational risk management is primarily conducted through continuous monitoring of the development of ventures as regards execution of the physical and financial schedule of works vis-àvis the initial planning of financial and accounting audit performed by an independent audit firm, and through a judicious analysis of the legal and credit risk relating to buyers of real estate units, via active management of the project receivables. Capital management Capital management risk arises from the Company s choice to adopt a financing structure for its operations. The Company manages its capital structure, which consists of a debt-to-equity ratio (Equity, Retained earnings and Income reserves), based on internal policies and benchmarks. The key indicators related to this objective are as follows: Weighted Average Cost of Capital (WACC), Net Debt/EBITDA and Net Debt/Equity. Total debt consists of Loans and financings (Note 9). The Company may change its capital structure based on economic and financial conditions in order to improve its financial leverage and debt management. The Company s net debt structure includes: loans and financing less cash and cash equivalents. Consolidated Description 3/31/ /31/2011 Loans and financing 556, ,152 (-) Cash and cash equivalents (364,088) (351,112) Net debt 192, ,040 Equity 1,297,768 1,232,483 Equity and net debt 1,490,255 1,354,523 Ernst & Young Terco 23

66 (Amounts expressed in Reais) 21. Stock options plan Stock options compensation At a Special General Meeting held on December 22, 2009, Company shareholders approved a stock option plan setting out the rules and conditions for granting stock purchase options to employees, managing officers, executives and employees, in order to attract, motivate and retain them, as well as to align their interests with those of the Company and its shareholders. Two programs were created, comprising a total of 8,674,673 options, representing the same number of shares. The Board of Directors has granted 7,899,122 options, 1,871,483 of which have already been effectively exercised. Changes in options are as under: Program 1 Program 2 Grant year 2009 to to 2012 Total number of options 3,963,301 4,711,372 Exercise price (at 3/31/2012) * Term 25% p.a. 20% p.a. Changes in options Options granted 4,059,122 3,840,000 Options exercised 1,871,483 - Options outstanding 2,081,107 2,970,000 Options cancelled - 106, ,000 Options exercised until 3/31/2012-1,026,000 Balance of options to be granted 10, ,372 (*) The exercise price considers the issue price restatement by reference to the Extended Consumer Price Index (IPCA) until, as well as an adjustment due to payment of dividends of R$0.141/share in May/2010, and R$ 0.30/share in February/2011 and dividends provisioned referring to 2011, in the amount of R$0.27/share. Ernst & Young Terco 24

67 (Amounts expressed in Reais) 21. Stock options plan (Continued) The fair value of the last options granted was calculated based on a binomial calculation, considering a historical volatility of 29.67%, average interest rate of 9.64% p.a., and the respective exercise prices of each program. The average value of Program 1 options was estimated at R$10.12, whereas that of Program 2 at R$5.18 each. The amount of R$3,299 was accrued for the period ended. The future expense to be recognized in relation to the plans over the next 57 months totals R$15,721 at. Should the beneficiaries to all options already granted and not exercised of Programs 1 and 2 exercise their options, the maximum dilution of participation of current shareholders will be 3.25%. Ernst & Young Terco 25

68 Earnings Release Belo Horizonte, May 14 th Direcional Engenharia S.A., one of the largest homebuilders in Brazil, focused on developing large scale and lowincome projects, operating in the North, Midwest and Southeast regions in Brazil, discloses hereby its operating and financial results for the first quarter of 2012 (). Unless otherwise indicated, the information included in this document is expressed in Brazilian Reais (R$) and the PSV is % Direcional. The Company s consolidated financial statements are prepared in accordance with accounting practices adopted in Brazil, based on Brazilian Corporate Law and CVM regulations. TICKER: DIRR3 Share price 05/14/2012: R$ 9,75 Number of shares: 153,638,549 Market Cap: R$ 1, million / US$ million Free Float: 52% average daily volume: thousand shares R$ 1,155.8 thousand TELECONFERENCE Date: 05/15/2012 Tuesday Portuguese 09:00 am Brasília time English 10:00 am New York time Contact telephone numbers: Calling from Brazil: + 55 (11) Calling from other countries: +1 (412) PASSWORD: DIRECIONAL CONTACT: Carlos Wollenweber CFO IR +55 (31) Paulo Sousa IR Analyst +55 (31) ir@direcional.com.br DIRECIONAL POSTS RECORD NET REVENUE OF R$ MILLION IN, UP 40% COMPARED TO 1Q11. FINANCIAL AND OPERATING HIGHLIGHTS Record Net Revenue of R$ million in, up 39.9% compared to 1Q11 Adjusted Gross Profit¹ of R$ 98.8 million in, up 37.2% on 1Q11 Adjusted Gross Margin¹ of 30.2% Adjusted EBITDA² of R$ 70.8 million, accompanied by a margin of 21.6% Adjusted Net Income² of R$ 54.4 million in, accompanied by a margin of 16.6% Cash Generation of R$ 32.8 million in, adjusted by accounts receivable from concluded units Net Debt/Equity Ratio of 14.8% Launches and Sales: launched PSV of R$ million and contracted sales of R$ million Sales over Supply Ratio for the quarter reached 16.1% Inventory Sales: 62% of PSV sold in corresponded to units launched at least six months ago Delivery of four projects in, totaling 1,619 units and PSV of R$ million 1 Adjusted to exclude capitalized interest in production financing 2 Adjusted for (non-cash) expenses relating to stock-option program

69 EARNINGS RELEASE INDEX MESSAGE FROM THE MANAGEMENT... 3 KEY INDICATORS... 5 LAUNCHES... 6 CONTRACTED SALES... 8 SALES SPEED... 9 PROJECTS DELIVERED LAND BANK INVENTORY FINANCIAL PERFORMANCE Gross Operating Revenue Net Operating Revenue Gross Profit Selling, General & Administrative Expenses Adjusted EBITDA¹ Adjusted Net Income¹ Deferred Results BALANCE SHEET HIGHLIGHTS Accounts Receivable Cash and Cash Equivalents Change in Net Debt or Cash Burn Indebtedness SHARE REPURCHASE PLANS SHARES PERFORMANCE CONSOLIDATED BALANCE SHEET CONSOLIDATED RESULTS STATEMENT EBITDA RECOMPOSITION CONSOLIDATED CASH FLOW STATEMENT ADDED-VALUE STATEMENT GLOSSARY

70 EARNINGS RELEASE MESSAGE FROM THE MANAGEMENT We are extremely pleased to present our financial and operating results for the first quarter of 2012, particularly the solid results generated by our business model, which is based on four pillars: (i) focus on the low-income segment; (ii) operational expertise in areas where there are barriers to entry and competition is low; (iii) large-scale projects; and (iv) industrialized model that uses own workforce. In we posted record net revenue of R$ million, a 39.9% increase over 1Q11. Gross revenue from turnkey project contracts targeted at families with monthly incomes of up to R$ 1.6 thousand (Minha Casa, Minha Vida Program Layer 1) grew 77.1% over 1Q11, increasing that modality s share of gross revenue by 5.5 p.p., moving up from 22.5% to 28.0%. Our gross profit, adjusted by interest from SFH financing capitalized in cost, came to R$ 98.8 million, up 37.2% compared to 1Q11, generating an adjusted gross margin of 30.2%. The decrease in our gross margin is due in large part to the greater share of MCMV Layer 1 projects recognized in revenue. Despite the lower gross margin, these projects have a low cash exposure, one of the reasons behind the 1.8 p.p. increase in our return on equity (annualized ROE) over the previous quarter. In, adjusted net income came to R$ 54.4 million, up 7.3% over the same period last year, accompanied by an adjusted net margin of 16.6%. Cash burn came to R$ 70.4 million in. The increase relative to 4Q11 is mainly due to annual payments received from clients in December. Cash burn in was consistent with our estimates, and we project a reduction in cash burn this year relative to 2011 because of (i) the significant increase in units to be delivered in 2012, with clients debts transferred to the respective banks after delivery of keys, and (ii) the increased share of MCMV Layer 1 projects in our revenue. In line with our conservative approach, we ended with gross debt of R$ million and cash of R$ million, resulting in net debt of R$ million, which corresponds to 14.8% of equity, a very comfortable level of leverage compared to the industry average. It is also worth noting that 93.6% of our debt, excluding receivables securitization, corresponds to SFH financing, in which debt amortization occurs by transfer of the debt from the client to the bank financing the project. The company launched 1,091 units in, with total PSV of R$ million. In we launched three projects, two of which qualify as MCMV Program projects - one under the Special Taxation Regime (RET 1%) project in Manaus, Amazonas state (AM), and the other in Santa Maria, Federal District (DF) and a development project in the city of Belo Horizonte, Minas Gerais (MG). Sales reached R$ million, 93% of launched PSV in. It is worth noting that 61.9% of sold PSV in the quarter corresponded to the sale of inventory launched at least six months ago, which helped to decrease inventory aging. We delivered four projects is (two in Manaus-AM, one in Porto Velho-RO, and one in Marituba-PA), totaling 1,619 units and PSV of R$ million. We also purchased one plot of land with a PSV of R$ million and 1,274 units in the quarter. We ended the quarter with a land bank with PSV of R$ 6.9 billion. It is important to note that our land bank calculations do not include land purchase options associated with MCMV Layer 1 projects, which in 2011 accounted for approximately 40% of launched PSV. We remain very optimistic about the pipeline of projects awaiting approval from CEF under the second phase of the MCMV Program and confident in our distinctive ability of execution, which will enable us to leverage the high demand 3

71 EARNINGS RELEASE associated with significant government incentives to the very low-income segment and to grow at a strong pace with low cash commitment. We believe that our solid track record with MCMV Layer 1 and Residential Leasing Program (PAR) projects consolidates our position as the most important player in the very low-income segment in Brazil, evidenced by the fact that we have so far contracted approximately 20,000 units in this segment, corresponding to PSV of approximately R$ 1.1 billion. We reaffirm our confidence in our business model and our commitment to maintaining Direcional s position as one of the sector s most efficient and profitable firms, focused on creating value for our clients and shareholders. The Management, Direcional Engenharia S.A. 4

72 EARNINGS RELEASE KEY INDICATORS 4Q11 1Q11 (a) (b) (c) (a/b) (a/c) Launches Launched PSV (R$'000) 143, , , % -36.8% Launched PSV - % Direcional (R$'000) 143, , , % -35.9% Launched PSV (R$'000): MCMV 1st Layer 0 209, % n/a Launched PSV (R$'000): ex MCMV 1st Layer projects 143, , , % -35.9% Average Direcional Stake (%) 99.9% 96.7% 98.4% 3.2 p.p. 1.5 p.p. Units Launched 1,091 4,470 1, % -12.2% Launched Units: MCMV 1st Layer 0 3, % n/a Launched Units: ex MCMV 1st Layer 1, , % -12.2% Average Price (R$/unit) 131,382 98, , % -28.0% Sales Contratcted PSV (R$'000) 156, , , % -29.3% Contracted PSV - % Direcional (R$'000) 132, , , % -24.3% Contracted PSV - % Direcional (R$'000): MCMV 1st - 209, % n/a Layer Contracted PSV - % Direcional (R$'000): ex MCMV 1st 132, , , % -24.3% Layer Units 1,027 4,650 1, % -15.2% # of Units: MCMV 1st Layer - 3, % n/a # of Units: ex MCMV 1st Layer 1,027 1,162 1, % -15.2% Average Price (R$/unit) 152,635 87, , % -16.7% Sales Over Supply (% PSV) 16.1% 18.5% 22.1% -2.4 p.p p.p. Sales Over Supply (% PSV): ex MCMV 1st Layer 16.1% 31.8% 22.1% p.p p.p. Financial Indicators Net revenue (R$'000) 327, , , % 39.9% Gross Income (R$'000) 87,655 82,565 65, % 33.6% Gross Margin (%) 26.8% 27.9% 28.0% -1.1 p.p p.p. Adjusted Gross Margin (%) 30.2% 30.5% 30.8% -0.3 p.p p.p. Adjusted EBITDA (R$'000) 70,786 70,786 57, % 22.7% Adjusted EBITDA Margin (%) 21.6% 23.9% 24.7% -2.3 p.p p.p. Adjusted Net Income (R$'000) 54,432 47,922 50, % 7.3% Adjusted net Margin (%) 16.6% 16.2% 21.7% 0.4 p.p p.p. Other Indicators 4Q11 3Q11 2Q11 1Q11 Annualized ROE¹ (%) 18.4% 16.6% 21.1% 14.9% 21.8% ROE LTM² (%) 17.5% 17.7% 19.6% 20.3% 22.5% Cash and Cash Equivalent (R$'000) 364, , , , ,410 Total Debt (R$'000) 556, , , , ,307 Net Debt (R$'000) 192, ,040 94,090 26,862-7,103 Shareholder's Equity (R$'000) 1,297,768 1,232,483 1,198,297 1,145,298 1,106,900 Net Debt / Shareholder's Equity (%) 14.8% 9.9% 7.9% 2.3% -0.7% Net Debt / EBITDA last 12 months 0.7x 0.5x 0.32x 0.12x -0.03x Revenues to be Rocognized (R$'000) 1,434,378 1,456,898 1,325,614 1,076, ,047 Results to be Recognized (R$'000) 552, , , , ,339 Margin to be Recognized (%) 38.5% 38.1% 37.7% 38.4% 39.5% Inventories (R$'000) 796, , , , ,062 Inventories - % Direcional (R$'000) 705, , , , ,689 Total LandBank (R$'000) 9,189,705 9,203,767 9,258,392 9,298,060 9,291,196 LandBank - % Direcional (R$'000) 6,934,290 6,948,338 6,991,495 6,985,975 7,004,063 LandBank - Units 67,089 66,906 67,361 68,007 68, Annualized ROE: Annualized Quarter s Net Profit / Average Shareholders' Equity in the same period 2. ROE LTM: Net profit in the last twelve months / Average Shareholders' Equity in the same period 5

73 EARNINGS RELEASE LAUNCHES In Direcional launched three projects with total PSV of R$ million and 1,091 units. Two of those projects were launched under the MCMV Program one in Manaus, Amazonas, under the Special Taxation Regime (RET 1%) and another in Santa Maria, Federal District, corresponding to Phase 8 of the of the Setor Total Ville. Direcional also launched a development project in the city of Belo Horizonte, Minas Gerais. One Hotels By Caesar Business MG (PSV R$ 45.9 MN) Total Ville Manaus Liberdade AM (PSV R$ 37.7 MN) Setor Total Ville 8th Phase DF (PSV R$ 59.7 MN) The table below provides consolidated information relative to the projects launched in : Projects Date City - State Total (R$ '000) PSV % Direcional (R$ '000) # of Units Launched In the Quarter All Phases Segment 1 One Hotels By Caesar Business January Belo Horizonte - MG 45,918 45, Commercial 2 Total Ville Manaus - Liberdade March Manaus - AM 37,700 37, RET1 3 Setor Total Ville - 8ª Etapa March Santa Maria - DF 59,720 59, Low-Income Total 143, ,248 1,091 8,731 The charts below show the evolution of our launches: Launched PSV (R$ million) Launched PSV Track Record (R$ million) 1, % 1, Project Acquisition MCMV 1st Layer Development Project Acquisition Launched PSV CAGR +69% ,067 1, , % Q

74 EARNINGS RELEASE Breakdown of Launches Direcional remains focused on the low and very low-income segments. From the R$ million in launched PSV, 26% have an average sale price of R$ 85.0 thousand per unit, while 42% have an average sale price of R$ thousand per unit. The geographic and economic breakdown of the launches is detailed in the following charts: Launches by Segment (% PSV) Launches by Region (% PSV) 5% 1% 30% 28% 36% 8% 7% 29% 16% 40% 7% 63% 29% 32% 68% 21% 30% 49% 9% 30% 61% 22% 34% 44% 42% 32% 26% Q11 Commercial Medium Upper-Middle Low-Income MCMV 1st Layer Q11 Midwest Southeast North The table below provides consolidated information for our launches, compared to those of 1Q11 and 4Q11: Launches 4Q11 1Q11 (a) (b) (c) (a/b) (a/c) Launched PSV (R$'000) 143, , , % -36.8% Launched PSV % Direcional (R$'000) 143, , , % -35.9% Direcional's share (%) 99.9% 96.7% 98.4% 3.2 p.p. 1.5 p.p. Launched PSV (R$'000): MCMV 1st Layer - 209,097 - n/a n/a Launched PSV (R$'000): ex MCMV 1st Layer 143, , , % -35.9% Units Launched 1,091 4,470 1, % -12.2% Units Launched: MCMV 1st Layer - 3,488 - n/a n/a Units Launched: ex MCMV 1st Layer 1, , % -12.2% # of Projects % -40.0% Units Launched/# of Projects % 46.3% Total Units/# of Projects (all phases) 2,910 1, % 232.3% Usable Area Launched (sq. m) 46, ,512 79, % -41.0% Average Area (sq. m / unit) % -32.8% Average Price (R$/unit) 131,382 98, , % -28.0% Average Price (R$/sq.m) 3,064 2,109 2, % 7.0% 7

75 EARNINGS RELEASE CONTRACTED SALES Direcional s sales totaled R$ million in, equivalent to 93% of the launched volume in the quarter. It should be noted that 61.9% of sold PSV in the quarter corresponded to the sale of inventory launched at least six months ago, which helped to reduce inventory aging, as the chart below demonstrates: Contracted PSV (R$ million) Contracted PSV Track Record (R$ million) 1, % 1, Project Acquisition MCMV 1st Layer Development Project Acquisition Development CAGR +76% 1,037 1, , % Q Breakdown of sales From the total sold PSV in, 52% corresponds to projects in northern Brazil, reflecting the success of our initiatives to reduce inventory in that region, where 66% of the Company s total inventory is concentrated. The popular segment accounted for 42% of sales, up 6 p.p. over 1Q11. The following charts show the geographic and economic breakdown of sales: Sales by Period of Launching - (% PSV Ex-MCMV 1 st Layer) 28.5% 4Q11 3Q11 9.6% 6.2% 19.5% 25.7% 2Q11 < % % 1Q11 Sales by Segment (% PSV) Sales by Region (% PSV) 13% 6% 4% 20% 26% 30% 18% 3% 7% 9% 10% 52% 41% 19% 34% 9% 26% 24% 44% 7% 42% 46% 37% 36% 42% 46% 66% 32% 52% 2010 Commercial Upper-Middle 2011 Medium Low-Income 1T11 1T12 MCMV 1st Layer 2010 Midwest 2011 Southeast 1T11 North 1T12 8

76 The table below provides consolidated information regarding contracted PSV: EARNINGS RELEASE Contracted Sales 4Q11 1Q11 (a) (b) (c) (a/b) (a/c) Contracted PSV (R$'000) 156, , , % -29.3% Contracted PSV % Direcional (R$'000) 132, , , % -24.3% Contracted PSV % Direcional (R$'000): MCMV 1st Layer - 209,097 - n/a n/a Contracted PSV % Direcional (R$'000): ex MCMV 1st Layer 132, , , % -24.3% # of Units 1,027 4,650 1, % -15.2% # of Units: MCMV 1st Layer - 3,488 - n/a n/a # of Units: ex MCMV 1st Layer 1,027 1,162 1, % -15.2% Average Price (R$/unit) 152,635 87, , % -16.7% VSO (Sales over total supply) 16.1% 22.1% 18.5% -6.1 p.p p.p. VSO (Sales over total supply): ex MCMV 1st Layer 16.1% 31.8% 22.1% p.p p.p. SALES SPEED The Sales over Supply ratio of PSV came to 16.1%, negatively influenced by the concentration of 81% of units launched in the last two weeks of March. Sales-over-supply ratio (VSO) (% Total PSV) Sales-over-supply ratio (VSO) (% Of Units) 36.7% 31.8% 54.2% 47.4% 22.1% 18.5% 16.0% 18.5% 16.1% 20.4% 15.0% 14.8% 18.4% 16.9% 1Q11 2Q11 3Q11 4Q11 1Q11 2Q11 3Q11 4Q11 Without MCMV 1st Layer project With MCMV 1st Layer project Without MCMV 1st Layer project With MCMV 1st Layer project VSO = Sales in the Period / (Initial Inventory + Launches in the Period) Sales Speed (% Units) The following sales speed chart shows that, from the units launched in 2011, 83%, 74%, 94% and 91% of the PSV launched in 1Q11, 2Q11, 3Q11 and 4Q11, respectively, have already been sold. 10% 4Q11 85% 6% 91% 3Q11 90% 2% 94% 2% 2Q11 20% 20% 18% 16% 74% 3% 1Q11 48% 21% 9% 2% 83% 3 M 6 M 9 M 12 M 15 M 9

77 EARNINGS RELEASE PROJECTS DELIVERED Direcional has a large number of units to be delivered in In the end of, the Company has already delivered R$ million in PSV, or 1,619 units, consisting of four projects, two of them in Manaus-AM, one in Porto Velho-RO and one in Marituba-PA. Delivered Projects - Date City - State Total (R$ '000) PSV % Direcional (R$ '000) # of Units Delivered Segment 1 Weekend Club Ponta Negra February Manaus - AM 90,960 72, Medium 2 Total Ville Manaus - Harmonia February Manaus - AM 50,050 50, Low-Income 3 Riviera Residencial Clube February Porto Velho - RO 31,800 25, Upper-Middle 4 Total Ville Bella Città - Salinas March Marituba - PA 61,875 61, Low-Income Total 234, ,077 1,619 Weekend Club Ponta Negra AM (PSV R$ 72.8 MN) Total Ville Manaus Harmonia AM (PSV R$ 50.0 MN) Riviera Residencial Clube RO (PSV R$ 25.4 MN) Total Ville Bella Città Salinas PA (PSV R$ 61.9 MN) LAND BANK On, the PSV of Direcional s land bank stood at R$ 6.9 billion, while its estimated building potential totaled 67,089 units. The average price of the units in the land bank was R$ thousand. Land Bank by Segment (% PSV) Low-Income 54.0% Land Bank by Region (% PSV) 4.8% Commercial 7.1% 34.1% Upper-Middle Medium 58.5% large scale projects (more than 1,000 units); 74.2% of units are eligible for the MCMV program; 75,8% acquired through financial or physical swaps; Average cost relative to PSV of 9,2%. AM 14% RO 4% PA 13% DF GO 20% 2% SP 6% MG 38% RJ 1% ES 1% 10

78 The table below shows land bank inventory, by state, at the end of. EARNINGS RELEASE State Potential PSV (R$ '000) Average Price Average Usable Area # Units Total % Direcional % Direcional (sq. m) Units sq. m MG 3,536,515 2,623, % 26,877 1,535, ,581 2,304 DF 2,543,525 1,402, % 18,508 1,070, ,428 2,375 AM 1,006, , % 5, , ,114 2,934 PA 917, , % 8, , ,319 2,029 SP 512, , % 2, , ,444 3,118 RO 340, , % 2, , ,337 2,282 ES 129, , % , ,023 2,500 RJ 94,581 50, % , ,685 3,031 GO 108, , % 1,274 55,030 85,000 1,968 TOTAL 9,189,705 6,934, % 67,089 3,853, ,978 2,385 Direcional s land bank is proportionally lower in the North because of lower competition in land acquisition. Land Acquisition In Direcional acquired one plot of land with PSV of R$ million and building potential of 1,274 units. The average cost of acquiring this land was 8.6% of PSV. Landbank Changes (In PSV R$ million) Type of Payment ( % PSV) 6, , Swap 48.2% 51.8% Cash 4Q11 Acquired Land Bank Review of Assumptions Launches INVENTORY Direcional ended with inventory PSV of R$ million. In completed units, Direcional holds just 352 units, with a market value of R$ 72.7 million. PSV in Inventory (R$ '000) Inventory % Units in Inventory % Total % Direcional Under Construction 702, , % 3, % Finished Units 94,195 72, % % Total 796, , % 3, % 11

79 The adjacent graphs show the breakdown of inventory by launch date and segment: EARNINGS RELEASE Inventory by Period of Launching (% PSV) Finished Units 14.4% 10.3% 15.1% <2010 Inventory by Region (% PSV) North 66.0% % 22.2% 2010 Southeast 17.0% Midwest 17.0% FINANCIAL PERFORMANCE Gross Operating Revenue In, Direcional recorded R$ million in gross operating revenue, up 42.0% on 1Q11. The revenue recognized in the quarter came from development projects (71.2%), turnkey projects (28.0%), project management fees (0.4%), and brokerage services relating to the units sold by Direcional s sales force (0.4%). Gross Operating Revenue (R$ million) Revenues from Services Revenues from Real Estate Sales +12.2% , % The following charts compare the composition of our gross operating revenue in : % Q11 4Q Breakdown of Gross Operating Revenue () Management Fee 0.4% MCMV 1st Layer 28.0% Breakdown of Gross Operating Revenue (1Q11) Management Fee 0.8% 22.5% MCMV 1st Layer Development 71.2% Brokerage Fee 0.4% Development 76.2% Brokerage Fee 0.5% 12

80 EARNINGS RELEASE The table below provides a breakdown of gross revenue: Gross Revenue (R$ '000) 4Q11 1Q (a) (b) (c) (a/b) (a/c) (d) (e) (d/e) Revenues from Real Estate Sales 241, , , % 32.5% 829, , % Revenues from Services 98,046 82,050 56, % 72.8% 268, , % Gross Operating Revenues 339, , , % 42.0% 1,098, , % Revenues from Real Estate Sales: Gross revenue from real estate sales in came to R$ million, 32.5% higher than in 1Q11 (R$ million). Compared to 4Q11, gross operating revenue in this segment grew 9.5% in. The adjacent table breaks down the revenue recognized in by project launch year. 67.8% of the revenue booked in corresponds to projects launched since January Year of Launch % of Revenue Recognition < % % % % % Total 100.0% Revenue from Services: Gross revenue from services came to R$ 98.0 million in, up 72.8% over the same period last year and 19.5% compared to 4Q11. This revenue, which has been rising over the past few quarters, accounts for 41.1% of the company s gross revenue growth in (compared to 1Q11) and stems primarily from MCMV Layer 1 projects. Revenue from Services - Track Record (R$ million) 23.8% 23.0% 17.7% 15.2% 12.2% 10.1% 23.7% 27.2% 28.9% 14.5% 24.5% % Gross Revenue Track Record (R$ million) % % 1Q10 2Q10 3Q10 % Net revenue 4Q10 1Q11 2Q11 Revenue from Services 3Q11 4Q Q11 From Services From Real Estate Sales Net Operating Revenue Net revenue totaled R$ million in, a 39.9% increase over the same period last year (R$ million) and up 10.7% over the R$ million posted in 4Q11. 13

81 EARNINGS RELEASE Net Revenue (R$ million) Net Revenues - Track Record (R$ million) 1, % CAGR +80% +10.7% 1, % Q11 4Q It is important to point out that 28.0% of the revenue recognized in the quarter will be converted into cash in the very short term, since it is derived from service contracts. This helps shorten Direcional s cash cycle and is an advantage in relation to its peers, allowing it to grow with lower cash investments and a higher return on invested capital. Gross Profit In, adjusted gross profit¹ totaled R$ 98.8 million, 37.2% higher than the R$ 72.0 million posted in 1Q11. Adjusted gross margin in was 30.2%, down 0.6 p.p. compared to 1Q11 and 0.3 p.p. compared to 4Q11. This reduction was due mainly to the increased share in revenue from services, primarily composed of MCMV Layer 1 turnkey projects. Although these projects have lower gross margin, their scale, shorter construction cycle and lower capital investment requirements help to increase Direcional s return on invested capital. Gross Profit and Gross Margin (R$ million) Gross Profit Track Record (R$ million) 30.8% 30.5% 30.2% 33.4% 31.0% 35.4% 41.6% 35.5% 33.4% 31.0% 30.2% % % % CAGR +74% Adjusted Gross Margin¹ Interest capitalized in costs 2007 Gross Profit Adjusted for interest capitalized on the cost 14

82 EARNINGS RELEASE Selling, General & Administrative Expenses General and Administrative (G&A) Expenses: Throughout the last quarters, Direcional made investments to strengthen its administrative structure, focusing on internal processes, systems and controls in order to build a well-prepared team equipped with efficient management tools capable of supporting the Company s rapid growth. Adjusted G&A¹ (R$ million) 6.9% 7.3% 5.4% +49.1% 6.4% % % Adjusted G&A¹ Track Record (R$ million) 6.6% 6.9% 7.1% 7.8% % % % 1Q11 4Q11² % Net revenue Adjusted G&A¹ Q10 1Q11 % Net revenue 2Q11 3Q11 Adjusted G&A¹ 4Q11² Selling Expenses: Selling expenses include expenses with marketing, advertising and depreciation of sales stands and model apartments. Spending on marketing and advertising in the quarter was essentially equal, in nominal terms, to that of 4Q11. Selling Expenses (R$ million) 3.1% 2.1% 2.6% 2.6% 2.6% Selling Expenses Track Record (R$ million) 2.3% 2.1% 3.1% 2.0% 3.1% 2.6% % % % Q11 4Q11 % Net revenue Selling Expenses Q10 1Q11 % Net revenue 2Q11 3Q11 Selling Expenses 4Q11 1- Adjusted by (non-cash) expenses relating to the stock options program; 2-The bonus coinciding with 2010 goals and paid out in 2011 was approximately R$3.2 million lower than the amount budgeted in The reversal of that provision was booked in the first quarter under other operating expenses. The company, along with Ernst & Young, determined that the most appropriate classification of that reversal should affect the general and administrative expenses line. In 4Q11 we therefore reclassified R$3.2 million among the general and administrative expenses and other revenues and operating expenses lines. 15

83 The following table compares selling, general and administrative expenses: EARNINGS RELEASE SG&A 4Q11 1Q (a) (b) (c) (a/b) (a/c) (d) (e) (d/e) Selling Expenses (R$ '000) 8,588 9,212 4, % 71.9% 27,673 20, % % of Net Revenues 2.6% 3.1% 2.1% 2.6% 2.6% % of Sales 5.5% 2.3% 2.3% 2.2% 1.6% % of Sales without MCMV 1st Layer 5.5% 5.3% 2.3% 4.0% 2.6% % of Total Launches 6.0% 2.1% 2.2% 2.0% 1.6% % of Total Launches ex MCMV 1st Layer 6.0% 4.1% 2.2% 3.3% 2.4% G&A (R$ '000) 27,148 19,364 27, % -0.4% 96,193 59, % Adjusted G&A (R$ '000)¹ 23,849 16,001 16, % 47.1% 72,759 50, % % of Net Revenues 7.3% 5.4% 6.9% 6.8% 6.4% % of Sales 15.2% 3.9% 7.3% 5.7% 4.0% % of Total Launches 16.6% 3.6% 7.1% 5.2% 3.9% Adjusted EBITDA¹ Adjusted EBITDA¹ Adjusted EBITDA reached R$ 70.8 million in, 22.7% above the R$ 57.7 million in 1Q11 and 10.7% higher than the R$ 64.0 million posted in 4Q11. Adjusted EBITDA margin on net revenue in was 21.6%, in line with the 4Q11 margin. (R$ million) 24.7% 21.6% 21.6% +10.7% 25.8% % % % 1Q11 4Q Adjusted¹ EBITDA Adjusted¹ EBITDA Margin 2011 EBITDA Recomposition (R$ '000) 4Q11 1Q11 % % (a) (b) (c) (a/b) (a/c) Adjusted Net Income¹ 54,432 47,922 50, % 7.3% (+) Depreciation and Amortization 3,872 5,983 1, % 193.8% (+) Income Tax and Social Contribution 8,174 6,853 4, % 76.7% (+) Minority Interest 1,501 3,765 1, % 14.2% (+/-) Financial Results -8,333-8,292-6, % 24.8% (+) Cost of production financing 11,140 7,723 6, % 74.3% Adjusted EBITDA 70,786 63,954 57, % 22.7% Adjusted EBITDA Margin 21.6% 21.6% 24.7% Adjusted Net Income¹ Direcional ended with adjusted net income of R$ 54.4 million, accompanied by an adjusted net margin of 16.6%. The adjusted net income up 7.3% and 13.6% compared to 1Q11 and 4Q11, respectively. 1- Adjusted by (non-cash) expenses relating to the stock options program 16

84 EARNINGS RELEASE Adjusted Net Income¹ (R$ million) 21.7% 16.2% 16.6% 22.6% 18.5% Net Income¹ - Track Record (R$ million) 24.5% 21.1% 22.5% 22.6% 18.5% 16.6% % CAGR +74% +7.3% Q11 4Q11 Adjusted Net Margin¹ +13.6% 2010 Adjusted Net Income¹ Adjusted Net Margin¹ Adjusted Net Income¹ 54 Deferred Results In the end of, sales revenues to be recognized totaled R$ 1.4 billion, an increase of 48.3% over 1Q11, accompanied by margin to be recognized of 38.5%. Direcional s construction schedule indicates that 65.2% of the balance should be recognized by the end of 2012, with the remaining 34.8% to be booked starting in January Consolidated Deferred Results (R$ '000) 4Q11 1Q11 (a) (b) (c) (a/b) (a/c) Consolidated Deferred results (1+2) 552, , , % 44.5% Deferred revenues 1,434,378 1,482, , % 48.3% Deferred costs 881, , , % 50.8% Deferred results - Margin 38.5% 37.8% 39.5% 0.7 p.p p.p. Deferred results - Development (1) 342, , , % 5.2% Deferred revenues 815, , , % 6.9% Deferred costs 472, , , % 8.1% Deferred results - Margin 42.0% 43.1% 42.7% -1.1 p.p p.p. Deferred results - MCMV 1st Layer projects (2) 210, ,282 56, % 270.8% Deferred revenues 619, , , % 203.2% Deferred costs 409, , , % 177.3% Deferred results - Margin 33.9% 32.0% 27.7% 1.9 p.p. 6.2 p.p. Deferred Results (R$ million) MCMV 1st Layer projects Development % % Estimated Schedule for REF (% per year) 65.2% 33.8% % 1Q11 4Q Adjusted by (non-cash) expenses relating to the stock options program 17

85 EARNINGS RELEASE BALANCE SHEET HIGHLIGHTS Accounts Receivable Direcional ended with an accounting balance for accounts receivable of R$ 1.3 billion, 41.2% higher than the 1Q11 balance and 9.8% higher than the closing balance of The short-term portion totaled R$ 1.0 billion, 82.3% of total receivables. The real estate sales balance totaled R$ 1.1 billion, compared to R$ million in 1Q11, a 38.5% increase. The services portion totaled R$ million in, compared to R$ 77.1 million in 1Q11, an important 70.8% increase. Accounts Receivable (R$ '000) 4Q11 1Q11 Receivables Schedule (a) (b) (c) (a/b) (a/c) (R$ '000) Clients from Sold Units 1,138,479 1,044, , % 38.5% In ,045,195 Services 131, ,139 77, % 70.8% In ,774 Total 1,270,243 1,156, , % 41.2% In ,280 Short Term 1,045, , , % 41.3% > ,994 Long Term 225, , , % 41.0% Total 1,270,243 According to current accounting rules, accounts receivable must be recognized in proportion to the respective construction (Percentage of Completion PoC). Therefore, the accounts receivable balance related to units sold and still not completed is not fully reflected in the Financial Statements. Direcional s total balance of accounts receivable in was R$ 2.1 billion. The charts below show the evolution of accounts receivable book value and the consolidated schedule of total receivables at the end of. Accounts Receivable (R$ million) Schedule - Accounts Receivable (R$ million) Long Term Short Term , % 1, % 1, , Q11 4Q11 In 2012 In 2013 In 2014 > 2014 Cash and Cash Equivalents The Company s balance of cash and cash equivalents at the end of the first quarter of 2012 came to R$ million, up 2.4% over the R$ million posted in 1Q11. 18

86 EARNINGS RELEASE Cash and Cash Equivalents (R$ '000) 4Q11 1Q11 (a) (b) (c) (a/b) (a/c) Cash & Bank 94,917 83,763 58, % 63.5% Financial Investments 269, , , % -9.5% Total 364, , , % 2.4% Change in Net Debt or Cash Burn Cash Burn (R$ million) +12.5% Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Cash Burn: measured by the variation of the net debt, less capital increases, dividends and stock repurchase plan. In 2011, Direcional s cash burn was R$ million, while accounts receivable from delivered units declined by R$ 6.4 million, meaning that the year s delivered PSV volume was transferred within the period itself. cash burn came to R$ 70.4 million, 12.5% higher than in 1Q11, and accounts receivable from delivered units increased by R$ million, mainly due to delivery of projects Weekend Phase 1 and Riviera Residencial Club, which jointly accounted for PSV of R$ 98.2 million. Cash Burn vs Accounts receivable from concluded units (R$ million) Cash Burn Accounts receivable from concluded units 70.4 Cash Burn Accounts receivable from concluded units Adjusted Cash Burn This increase in accounts receivable from concluded units tend to decrease in the next months, reducing Direcional s cash burn as transfers from clients to banks are made relative to projects delivered. If cash burn was adjusted by the variation in accounts receivable from concluded units, the company would have generated R$ 32.8 million in the quarter. The company believes that cash burn will decrease in 2012, even with the strong growth maintained. 19

87 EARNINGS RELEASE Indebtedness Breakdown of Debt: Cash and Debt (R$ '000) 4Q11 1Q11 (a) (b) (c) (a/b) (a/c) Loans and Financing 556, , , % 59.8% SFH 492, , , % 74.3% Receivables Securitization 30,080 31,847 36, % -17.4% FINAME and others 13,707 13,076 8, % 59.2% Working Capital 20,034 20,666 20, % -2.7% Cash and Debt Equivalents 364, , , % 2.4% Net debt 192, ,040-7, % n/a Net debt / Equity 14.8% 9.9% -0.6% The 17.6% increase in gross debt in the first quarter of 2012 (relative to 4Q11) was mainly a result of increase in SFH financing. When securitization of receivables is excluded, such funding accounts for 93.6% of gross debt. The graphs below break down our gross debt and the amortization schedule: Loans and Financing ex-securitization Amortization Schedule (%) (R$ million) 279 Working Capital 3.8% SFH 93.6% FINAME and others 2.6% to 12 months 12 to 24 months 24 to 36 months 36 to 48 months After 48 months Debt Direcional ended the first quarter of 2012 with total gross debt of R$ million and cash of R$ million, yielding net debt of R$ million. (R$ million) Excluding SFH financing, which came to a total balance owed of R$ million at the close of the quarter, Direcional would end with net cash of R$ million. The adjacent chart breaks down the Company s gross and net debt at the end of the first quarter of SFH Debt Cash and Cash Equivalent Net Debt Net Debt Without SFH 20

88 18-Nov nov-09 8-Dec Dec Jan-10 8-Feb-10 9-dez dez jan-10 9-fev-10 2-mar mar-10 8-abr abr mai-10 7-jun jun jul-10 1-Mar Mar-10 7-Apr Apr May-10 4-Jun Jun Jul-10 4-Aug Aug-10 5-ago ago set out-10 4-nov nov dez-10 7-jan jan Sep Oct-10 3-Nov Nov Dec-10 6-Jan Jan Feb-11 3-Mar Mar Apr fev-11 4-mar mar abr-11 4-mai mai-11 9-jun jun jul-11 4-ago-11 3-May May-11 8-Jun Jun Jul-11 3-Aug Aug-11 9-Sep ago set Sep Oct set out-11 8-nov nov dez-11 4-jan jan fev-12 2-mar-12 3/21/2012 4/10/2012 4/27/ Nov Nov Dec-11 3-Jan Jan-12 9-Feb-12 1-Mar Mar-12 9-Apr Apr-12 Volume (BRL '000) Volume (R$ mil) Stock Performance Preço da Ação EARNINGS RELEASE SHARE REPURCHASE PLANS In 2011, two share repurchase plans were approved, as indicated in the adjacent table. In the period, Direcional paid a total of R$ 15.8 million to buyback 1,660,200 shares, at an average price of R$ 9.54 share. Plan 2 was concluded on April 20, Share Repurchase Plan - DetailsPlan Plan 1 Plan 2 Term 60 days 180 days Starting date 8/12/ /24/2011 Expiring date 10/11/2011 4/20/2012 # of shares approved by the Board 4,500,000 4,000,000 Buy back Approved (R$'000) 35,000 30,000 Total Expenses 1,633,800 26,400 Average price SHARES PERFORMANCE 10,000 9,000 8,000 7,000 6,000 5, Shareholders Composition (% Total 03/31/2012) Majority Shareholder 46.7% Tarpon 14.9% 4,000 3,000 2,000 1, % Others 7.0% GIC 6.9% Ridgecrest Treasury Stocks 1,1% Average Volume (21 days) Ibovespa IMOB Direcional Volume (BRL '000) Statements contained in this press release concerning the business perspective, projections of operating and financial results and references to the growth potential of the Company, are mere predictions and were based on expectations and Management estimates in relation to the future performance of the Company. While the Company believes that such forecasts are based on reasonable assumptions, it does not ensure that they are achieved. Expectations and estimates that are based on the future prospects of the Company are highly dependent on market behavior, Brazil s economic and political situation, of existing and future state government regulations, industry and international markets, and therefore, are subject to changes that are beyond the control of the Company and its management. The Company makes no commitment to publish updates or revise expectations, estimates and forecasts contained herein arising from information or future events. 21

89 EARNINGS RELEASE CONSOLIDATED BALANCE SHEET IFRS ASSETS 3/31/ /31/2011 CURRENT ASSET Cash and cash equivalents 364, ,112 Accounts receivable for property development 913, ,010 Accounts receivable for services rendered 131, ,139 Land units for development 244, ,300 Real property units completed 32,519 43,898 Real property units under construction 247, ,346 Sundry receivables 45,041 44,875 Transactions with related parties 39,881 37,560 Taxes recoverable 12,099 11,085 Commercial expenses to be allocated 1,817 2,233 Total Current Assets 2,033,062 1,913,558 NONCURRENT ASSET Accounts receivable for property development 225, ,245 Land units for development 248, ,801 Transactions with related parties 39,413 34,756 Sundry receivables 22,166 14, , ,503 Property, plant and equipment 46,116 45,662 Intangible assets 2,164 2,190 48,280 47,852 Total non-current assets 582, ,355 Total assets 2,616,001 2,451,913 LIABILITIES AND SHAREHOLDER'S EQUITY 3/31/ /31/2011 CURRENT LIABILITIES Loans and Financing 278, ,903 Trade accounts payable 41,102 42,766 Labor obligations 42,258 34,942 Tax obligations 63,408 58,547 Property commitments payable 34,288 32,848 Advances from customers 88,352 74,715 Proposed Dividends 42,087 42,346 Accounts payable 81,466 91,337 Transactions with related parties 17,193 8,960 Total Current Liabilities 688, ,364 NONCURRENT LIABILITIE Loans and Financing 277, ,249 Provision for warranty 10,943 12,555 Tax obligations 14,919 14,632 Property commitments payable 122, ,666 Advances from Customers 181, ,393 Provision for tax, labor and civil contingencies 4,570 4,549 Sundry payables 17,022 17,022 Total non-current liabilities 629, ,066 Capital 497, ,686 Capital reserves 267, ,598 Income reserves -15,846-15,846 Profit (loss) for the period 462, ,344 Equity 1,211,686 1,156,782 Interest in SCPs and SPEs 86,082 75,701 Total Equity 1,297,768 1,232,483 Total liabilities and equity 2,616,001 2,451,913 22

90 EARNINGS RELEASE CONSOLIDATED RESULTS STATEMENT IFRS Consolidated Statements of Income (R$ '000) 4Q11 1Q11 (a) (b) (c) (a/b) (a/c) Real Estate Sales Revenues 241, , , % 32.5% Services Revenues 98,046 82,050 56, % 72.8% Gross Revenues 339, , , % 42.0% Deductions from Gross Revenues -11,909-6,505-4, % 142.2% Operating revenue, net 327, , , % 39.9% Cost of real property sale -165, , , % 29.3% Cost of services rendered -74,036-67,769-40, % 84.2% Gross Profit 87,655 82,565 65, % 33.6% General and Administrative Expenses -27,148-19,364-27, % -0.4% Selling expenses -8,588-9,212-4, % 71.9% Financial expenses -2,575-1,567-1, % 35.2% Financial income 10,908 9,859 8, % 27.1% Other operating income and expenses 556-7,104 5, % -90.1% Operating income (expenses) -26,847-27,388-19, % 34.3% Income before Income and social contribution taxes 60,808 55,177 45, % 33.3% Income and social contribution taxes -8,174-6,853-4, % 76.7% Net income for the period 52,634 48,324 40, % 28.4% Non-controlling interest in SPEs and SCPs -1,501-3,765-1, % 14.2% Net Income for the period 51,133 44,559 39, % 28.9% EBITDA RECOMPOSITION EBITDA Recomposition (BRL'000) 4Q11 1Q11 % % (a) (b) (c) (c/a) (c/a) Net Income 51,133 44,559 39, % 28.9% (+) Depreciation and Amortization 3,872 5,983 1, % 193.8% (+) Income Tax and Social Contribution 8,174 6,853 4, % 76.7% (+) Minority Interest 1,501 3,765 1, % 14.2% (+/-) Financial Results -8,333-8,292-6, % 24.8% (+) Cost of production financing 11,140 7,723 6, % 74.3% (+) Stock options expenses 3,299 3,363 11, % -70.1% Adjusted EBITDA 70,786 63,954 57, % 22.7% Adjusted EBITDA Margin 21.6% 21.6% 24.7% 23

91 EARNINGS RELEASE CONSOLIDATED CASH FLOW STATEMENT IFRS CONSOLIDATED CASH FLOW STATEMENTS (R$'000) 3/31/2012 3/31/2011 From operating activities Income before income and social contribution taxes 60,808 45,619 Adjustments to reconcile P&L with cash from operating activities: Depreciation and amortization 3,872 1,318 Equity pick-up 0 0 Reversed provision -1, Interest on fees and funding 11,140 0 Provision for contingencies 21 0 Phisical Swap Return -25,452 0 Deferred tax - Indirect 7,125 2,294 Adjustment to present value on accounts receivable 6,721 0 Provision for stock options plan 3,299 11,044 Reversed provision -1,674-4,012 Provision for profit sharing 3,767 0 Minority shareholders -1,501 3,168 Decrease (increase) in assets Accounts receivable -118,896-76,134 Inventories ,584 Sundry receivables -7,631-12,550 Related Parties -6,978-2,134 Taxes recoverable -1,014 0 Commercial expenses to be allocated (Decrease)/increase in liabilities Suppliers -1,664 8,725 Labor obligations 3, Tax obligations -5,886-1,553 Property commitments payable 13, Advances from customers ,244 Accounts payable -9,871 7,040 Transactions with related parties 8,233 0 Cash used in operating activities -59,443-53,406 Income and social contribution taxes paid -4,265-4,626 Net cash used in operating activities -63,708-58,032 Cash flow from investing activities Increase in investments 0 0 Increase in property, plant and equipment -4,326-1,907 Increase in intangible assets Dividends received 0 0 Net cash used in investing activities -4,300-2,182 Cash flow from financing activities with shareholders Capital payment, net of expenses ,839 Treasury Stock 0 0 Dividends paid ,272 Cash flow from financing activities with shareholders 114,524 48,447 Inflows and loan amortization charges -29,812 0 Non-controlling shareholders interest -14,322-7,243 Interest in SCPs and SPEs 10,381 0 Net cash from (used in) financing activities 80, ,771 Net increase (decrease) in cash and cash equivalents 12, ,557 Cash and cash equivalents At the beginning of the period 351, ,852 At the end of the period 364, ,409 Net increase (decrease) in cash and cash equivalents 12, ,557 24

92 EARNINGS RELEASE ADDED-VALUE STATEMENT IFRS STATEMENT OF VALUE ADDED 3/31/2012 3/31/2011 Revenue 341, ,815 Sales of properties and services 339, ,961 Other revenues 556 8,761 Allowance for doubtful accounts 1, Bought-in materials and services (258,939) (167,126) Cost of units sold and services (241,180) (84,220) Materials, power, outsources and other operating (8,520) (67,376) Other (9,239) (15,530) Gross wealth 82,660 80,689 Depreciation and amortization, net (3,872) (2,303) Net wealth generated by the company 78,788 78,386 Wealth received 10,908 8,761 Financial income 10,908 8,761 Total wealth to distribute 89,696 87,147 To distribute to 89,696 87,147 Employees 14,404 27,531 Taxes and duties 20,083 6,806 Interests of third-parties 2,575 11,816 Retained earnings 51,133 39,680 Portion of profit attributable to minority shareholders 1,501 1,314 25

93 EARNINGS RELEASE GLOSSARY Land bank land held in inventory with the estimate of future PSV of the same. Classification of developments by Direcional, according to the economic segment to which they are intended: MCMV 1 st Layer Popular Popular major size Residential developments under construction contract, in the form of turnkey contracts under the program "MCMV," contracted directly with CEF for families with monthly incomes up to R$ 1, The properties of this segment have the final price determined by CEF and its purchase may be conditionally subsidized by the government. Residential developments with average price per unit up to R$ thousand. Popular large-size residential developments with at least 1,000 units in the same site and average price per unit up to R$ thousand. Medium Residential developments with average price per Unit between R$ thousand and R$ thousand. Upper-middle Residential developments with average price per Unit over R$ thousand. Adjusted EBITDA - Adjusted EBITDA is equal to EBITDA (earnings before financial interests included on the signed initials cost of sold property, Income Tax and Social Contributions, depreciation and amortization expenses), minus the participation of non-controlling shareholders and less spending on stock-options program. We believe that adjusting the present value of accounts receivable of Units sold and not delivered recorded as income (expense) gross operating is part of our operational activities and therefore we do not exclude this income (expense) in the calculation of Adjusted EBITDA. Adjusted EBITDA is not a measure of financial performance according to GAAP in Brazil, nor should be considered in isolation or as an alternative to net income as a measure of operating performance or an alternative to operating cash flows, or as a measure of liquidity. Adjusted EBITDA is an indicator of our overall economic performance, which is not affected by interest rate fluctuations, changes in tax burden from Income Tax and Social Contribution or levels of depreciation and amortization. Adjusted Net Income It is the Net Income calculated after deduction, in line with the G&A s, of administrative expenses relative to the stock Options Program, and of non-recurring expenses related to the process of a Company going public (IPO). PoC Method In accordance with BR GAAP, the Revenue, costs and expenses related to the residential development, are appropriated based on an accounting method of cost incurred ( PoC ), by measuring the construction progress by the actual costs incurred versus total budgeted spending for each phase of the undertaking. New Market A special listing segment of BOVESPA, where companies adopt differentiated practices of corporate governance, which exceed the traditional segment requirements. Directional joined the New Market on November 19, Swap a system of land purchase whereby the owner of land receives in payment a determined number of units of the undertaking to be built on the land. SFH Resources Housing Financial System Resources (SFH) are originated from the Guarantee Fund for Length of Employees Service (FGTS) and savings accounts deposits. Special Taxation System ("RET1"): System of taxation applicable to projects with housing units with sales value up to R $ 75.0 thousand, in which case the tax rate is 1% of gross revenue. Results to be Recognized Refers to the result of the balance of property sales transactions already contracted (for buildings whose construction has not yet been completed) and their respective budgeted costs to be incurred. Contracted Sales PSV arising from all real estate sales contracts concluded in a given period, including the sale of Units launched in the period and the sale of Units in Inventory. PSV Potential Sales Value (PSV) The total value potentially obtained by the sale of all Units of a given residential development at the launch price. There is a possibility that the PSV launched is not realized or differs significantly from the Contracted Sales value, since the amount of Units effectively sold may be different from the amount of Units Launched and/or the actual selling price of each Unit may differ from the launch price. PSV Launched: Potential Sales Value (PSV) of Units Launched over a given period. 26

94 EARNINGS RELEASE 27