Quarterly Information Direcional Engenharia S.A.

Transcrição

1 Quarterly Information Direcional Engenharia S.A. with Independent Auditor s Review Report A free translation into English of the original issued in Portuguese

2 Quarterly information Contents Independent auditor s review report on quarterly information... 1 Audited quarterly information Balance sheets... 4 Income statement... 6 Statement of changes in equity... 7 Cash flow statement... 8 Notes to quarterly information... 9

3 Edifício Phelps Offices Tower Rua Antonio de Albuquerque, º andar - Savassi Belo Horizonte, MG, Brasil Tel: (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 The Shareholders, Board of Directors and Officers Direcional Engenharia S.A. Belo Horizonte - MG Introduction We have reviewed the accompanying individual and consolidated interim financial information, contained in the Quarterly Information Form (ITR) of Direcional Engenharia S.A. as of, comprising the balance sheet as of and the related income statement for the three- and nine-month periods then ended, and the statements of changes in equity and cash flows for the nine-month period then ended, including explanatory notes. Management is responsible for the preparation of the individual interim financial information in accordance with CPC 21 Interim Financial Reporting, issued by Brazilian Financial Accounting Standards Board (CPC) and of the consolidated interim financial information in accordance with CPC 21 and IAS 34 Interim Financial Reporting, which considers guidance OCPC 04 on how to apply technical interpretation ICPC 02 to Real Estate Development Entities in Brazil, issued by CPC and approved by the Brazilian Securities and Exchange Commission (CVM) and Brazil's National Association of State Boards of Accountancy (CFC), as well as for the fair presentation of this information in conformity with specific rules issued by CVM applicable to the preparation of quarterly information (ITR). 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 interim financial statements 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 International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on this quarterly information. Ernst & Young Terco 1

4 Conclusion on the individual and consolidated interim information prepared in accordance with CPC 21 Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual interim 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 quarterly information (ITR), consistently with the rules issued by the Brazilian Securities and Exchange Commission. Conclusion on the consolidated interim financial information prepared in accordance with IAS 34, which considers Guidance OCPC 04 on how to apply Technical Interpretation ICPC 02 to Brazilian Real Estate Development Entities, issued by CPC and approved by CVM and CFC. Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information included in the quarterly information referred to above was not fairly prepared, in all material respects, in accordance with IAS 34, which considers Guidance OCPC 04 on how to apply Technical Interpretation ICPC 02 to Brazilian Real Estate Development Entities, issued by CPC and approved by CVM and CFC, applicable to the preparation of Quarterly Information (ITR), and presented in accordance with the standards issued by CVM. Emphasis of matter As mentioned in Note 2, the individual and consolidated interim accounting information was prepared in accordance with accounting practices adopted in Brazil (CPC 21). The consolidated interim accounting information prepared in accordance with the IFRS applicable to real estate development entities in Brazil (IAS 34 for interim information) also considers Guidance OCPC 04, issued by CPC. This guidance addresses the recognition of revenue from this industry and involves matters related to meaning and application of concept of ongoing risk, benefit and control transfer in real estate unit sales, as further detailed in Note 2 to the financial statements as of December 31, Therefore, our conclusion is not qualified. Ernst & Young Terco 2

5 Other matters Interim statements of value added We have also reviewed the individual and consolidated interim statements of value added (SVA) for the nine-month period ended, prepared under management responsibility, the presentation of which in the interim financial information is required by rules issued by CVM applicable to preparation of Quarterly Information (ITR), and as supplementary information by IFRS, which do not require SVA presentation. These statements have been subjected to the same review procedures previously described and, based on our review, nothing has come to our attention that causes us to believe that they are not prepared, in all material respects, in relation to the overall accompanying interim individual and consolidated financial information. Belo Horizonte, November 5, 2012 ERNST & YOUNG TERCO Auditores Independentes S.S. CRC 2SP015199/O-6 Antonio C. M. Lage Accountant CRC MG /O-1 Ernst & Young Terco 3

6 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 Direcional Engenharia S.A. Balance sheets and December 31, 2011 (In thousands of reais) Company Consolidated Notes 09/30/ /31/ /30/ /31/2011 Current assets: Cash and cash equivalents 3 166, , , ,112 Trade accounts receivable Real estate development 4 1,920 4,319 1,103, ,010 Trade accounts receivable Services rendered , ,139 Land units to be developed , ,300 Completed Real estate units ,003 43,898 Real estate units under construction , ,346 Related parties ,532 47,912 32,580 37,560 Taxes recoverable - 11,928 10,305 13,146 11,085 Other receivables - 11,239 13,106 46,586 47,108 Total current assets 232, ,197 2,441,846 1,913,558 Noncurrent assets: Trade accounts receivable Real estate development , ,245 Land units to be developed 5.1 1,865 29, , ,801 Related parties ,683 34,756 40,683 34,756 Other receivables - 7,986 8,770 63,855 14,701 Investments 7 1,219,841 1,014, Property, plant and equipment 8 30,976 24,178 54,218 45,662 Intangible assets - 2,084 2,003 2,286 2,190 Total noncurrent assets 1,303,498 1,114, , ,355 Total assets 1,536,215 1,313,947 3,037,323 2,451,913 Ernst & Young Terco 4

7 Company Consolidated Note 09/30/ /31/ /30/ /31/2011 Current liabilities: Loans and financing 9 70,674 4, , ,903 Trade accounts payable - 2,242 1,056 40,502 42,766 Labor liabilities 10 10,414 9,679 49,195 34,942 Tax liabilities ,296 58,547 Real estate commitments payable ,740 32,848 Advance from customers ,272 74,715 Proposed dividends , ,346 Other accounts payable 14 24,417 23,124 86,922 91,337 Related parties ,740 29,490 10,339 8,960 Total current liabilities 138, , , ,364 Noncurrent liabilities: Loans and financing 9 66,718 28, , ,249 Provision for guarantee ,195 12,555 Tax liabilities ,162 14,632 Real estate commitments payable , ,666 Advance from customers , ,393 Provision for tax, civil and labor risks , ,056 4,549 Other accounts payable 14 11,740 17,022 11,740 17,022 Total noncurrent liabilities 79,582 46, , ,066 Equity Capital , , , ,686 Capital reserves , , , ,598 Treasury stock (12,659) (15,846) (12,659) (15,846) Income reserves , , , ,344 P&L for the period 152, ,293-1,318,322 1,156,782 1,318,322 1,156,782 Non-controlling interest in SCP and SPE ,463 75,701 1,318,322 1,156,782 1,392,785 1,232,483 Total liabilities and equity 1,536,215 1,313,947 3,037,323 2,451,913 See accompanying notes. Ernst & Young Terco 5

8 Income statement Nine-month periods ended and 2011 (In thousands of reais) Company Consolidated 09/30/ /30/ /30/ /30/2011 Notes Quarter YTD Quarter YTD Quarter YTD Quarter YTD Net operating revenue ,042 2,090 1,300 5, ,714 1,023, , ,349 Cost of real estate sold 17.3 (3) 108 (33) - (178,187) (499,676) (154,021) (424,944) Cost of services rendered (33) (95,385) (249,811) (55,349) (133,397) Cost of real estate sold and services rendered 17.2 (3) 108 (33) (33) (273,572) (749,487) (209,370) (558,341) Gross profit 1,039 2,198 1,267 5,023 99, ,201 88, ,008 Operating income (expenses): General and administrative expenses 17.3 (24,536) (73,750) (26,949) (68,080) (28,952) (81,330) (27,826) (76,829) Selling expenses 17.3 (1,576) (7,007) (467) (1,741) (12,250) (30,495) (5,995) (18,461) Equity pickup 7 78, ,165 71, , Other operating income (expenses) - (899) (2,127) 1,930 7,097 (434) (979) 3,121 8,167 51, ,281 45, ,701 (41,636) (112,804) (30,700) (87,123) Financial income (expenses) Financial expenses 18 (972) (3,198) (1,040) (3,756) (2,910) (7,872) (5,860) (14,309) Financial income 18 2,652 16,012 8,713 27,689 6,615 27,082 11,826 34,935 1,680 12,814 7,673 23,933 3,705 19,210 5,966 20,626 Income before income and social contribution taxes ,293 54, ,657 61, ,607 63, ,511 Income and social contribution taxes (7,512) (23,555) (7,429) (18,245) Net income for the year 54, ,293 54, ,657 53, ,052 56, ,266 Net income attributable to: Non-controlling interest in SPE and SCP (4,759) (1,350) (2,609) Net income attributable to: Direcional Engenharia S/A 54, ,293 54, ,657 54, ,293 54, ,657 Earnings per share Basic Diluted See accompanying notes. Ernst & Young Terco 6

9 Statement of changes in equity Nine-month periods ended and 2011 (In thousands of reais) Capital reserves Income reserves Notes Capital Treasury stock Through issue of shares /disposal Stock options granted Legal reserve Retained For investment Retained earnings Company s equity Noncontrolling interest Consolidate d equity Balances at December 31, , ,489 9,850 16, ,952 56, ,477 34, ,855 Capital increase from public offering of shares 171,600-57, , ,800 Capital increase from options granted Expenses with public offering of shares - - (7,418) (7,418) - (7,418) Share-based payment equity interest , ,071-20,071 Equity instrument realization (9,850) - 9,850 Treasury stock (15,619) (15,619) - (15,619) Non-controlling interest ,503 10,503 Net income for the year , ,657 2, ,266 Balance at September 30, ,686 (15,619) 241,271 20,071 16, ,802 56, ,657 1,150,807 47,490 1,198,297 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 options granted Recognized options granted , ,380-8,380 Equity instrument realization (23,433) - 23, Capital reduction non-controlling shareholders (5,997) (5,997) Net income for the year , ,293 4, ,052 Sale of treasury stock ,187 (2,786) Supplementary dividends (6) - - (6) - (6) Balances at 497,158 (12,659) 238,379 8,380 25, ,071 56, ,293 1,318,322 74,463 1,392,785 See accompanying notes. Ernst & Young Terco 7

10 Cash flow statement Nine-month periods ended and 2011 (In thousands of reais) Company Consolidated From operating activities 09/30/ /30/ /30/ /30/2011 Income before income and social contribution taxes 152, , , ,511 Adjustment to reconcile P&L to cash and cash equivalents generated by operating activities: Depreciation and amortization 2,098 2,346 6,622 4,380 Equity pickup (220,165) (164,425) - - Provision for warranties (56) (6) (1,360) 4,519 Interest on loans and financing 2,955 3,137 45,251 26,990 Provision for tax, civil and labor risks ,507 1,631 Income from barter transactions - - (45,894) (35,504) Taxes - - 9,057 7,737 Net present value adjustment accounts receivable - - 7,897 5,173 Provision for stock option plan 8,380 20,071 8,380 20,071 Reversed provision (1,674) (129) (1,649) (321) Increase (decrease) in assets Trade accounts receivable 4,105 3,749 (278,926) (297,031) Inventories 28,011 10,682 47,193 (137,282) Sundry receivables 2,651 (4,644) (48,632) (24,240) Related parties 1,854 (75,062) (546) (11,314) Taxes recoverable (1,623) (2,851) (2,061) (3,047) (Decrease) increase in liabilities Trade accounts payable 1, (2,264) 9,811 Labor liabilities ,253 8,989 Tax liabilities (1,856) 5,856 Real estate commitments payable - - (13,809) 37,671 Advance from customers - - (346) 47,013 Trade accounts payable (3,989) 25,217 (9,697) 68,799 Related parties ,990 1,379 4,648 Cash used in operating activities (22,357) (20,672) (82,894) (103,940) Income and social contribution taxes paid - - (14,477) (18,245) Net cash used in operating activities (22,357) (20,672) (97,371) (122,185) Cash flow from investing activities Increase in investments (SCP and SPE) (1,098) (142,595) - - Increase in PP&E (8,697) (2,379) (14,650) (10,415) Increase in intangible assets (280) (600) (624) (757) Dividends received 16,382 78, Net cash generated by (used in) investing activities (66,631) (15,274) (11,172) Cash flow from financing activities Payment of capital, net of expenses , ,221 Treasury stock - (15,619) - (15,619) Dividends paid (41,618) (40,272) (41,712) (39,325) Loans taken out 106,865 (3,022) 474, ,344 Loan repayment (3,215) - (162,875) - Interest paid (3,023) - (42,547) - Capital increase non-controlling shareholders - - (5,997) 10,503 Net cash generated by financing activities , , ,124 Increase in cash and cash equivalents 43,431 76, , ,767 Cash and cash equivalents At beginning of period 122, , , ,851 At end of period 166, , , ,618 See accompanying notes. Ernst & Young Terco 8

11 Statement of value added Nine-month periods ended and 2011 (In thousands of reais) Company Consolidated 09/30/ /30/ /30/ /30/2011 Revenues Real estate sold and services rendered 2,931 5,828 1,057, ,980 Other revenues (2,127) 7,097 (979) 8,167 (Establishment) reversal of allowance for doubtful accounts 1,637-1,637-2,441 12,925 1,057, ,147 Inputs acquired from third parties Raw materials consumed - - (749,348) (510,928) Materials, electric energy, outsourced services and other operating expenses (10,548) (37,746) (37,830) (88,465) Other (28,522) (1,741) (27,634) (21,761) (39,070) (39,487) (814,812) (621,154) Gross value added (36,629) (26,562) 242, ,993 Depreciation and amortization, net (2,098) (2,346) (6,622) (4,380) Net value added generated by the Company (38,727) (28,908) 236, ,613 Transferred value added received Equity pickup 220, , Financial income 16,012 27,689 27,082 34, , ,114 27,082 34,935 Total value added to be distributed 197, , , ,548 Distribution of value added Personnel 41,118 28,021 41,515 28,097 Taxes, charges and contributions ,940 37,876 Debt remuneration 3,198 3,756 7,872 14,309 Retained profit 152, , , ,657 Portion of net income attributed to non-controlling shareholders - - 4,759 2, , , , ,548 See accompanying notes. Ernst & Young Terco 9

12 Notes to quarterly information 1. Operations Direcional Engenharia S.A. ( Direcional or Company ) is a publicly-held company incorporated under the Brazilian corporation laws. Direcional shares are traded on BM&FBOVESPA, under ticker symbol DIRR3. The Company is domiciled in Brazil and its head office is located at Rua Grão Pará, 466, Belo Horizonte, state of Minas Gerais (MG). The Company is a subsidiary of Filadélphia Participações S.A., which holds 47.13% of its capital as of. Mr. Ricardo Valadares Gontijo is the ultimate controlling shareholder of the Company. The Company operates in the real estate development and construction business, focusing upon development of large low-income-oriented constructions, mainly in the North and Midwest regions of Minas Gerais State. Over its 31 years of experience in development and construction of low-income-oriented projects, the Company has developed a vertical structure and a standardized construction process, which has enabled construction of large-scale projects. The Company carries out its development and construction activities through Special Partnerships ( SCPs ) and Special Purpose Entities ( SPEs ) used in the ordinary course of business as a way to enable the establishment of partnerships, allow followup on individual projects, ease obtainment of financing lines for production as well as financial and accounting control. Both SCPs and SPEs are solely engaged in the real estate industry and, in most cases, are associated with a specific venture. Public offering On February 9, 2011, the Company completed its public offering of primary and secondary distribution of its shares, comprising issuance of (i) 20,8 million common, registered, book-entry shares, with no par value ( Primary Offering ), and (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 shares. The unit value per share was R$11.00, totaling R$ 308,000. In this regard, net proceeds of commissions and certain fees related to the Primary Offering, amounting to R$ 7,418, flowing into the Company totaled R$ 221,382. Ernst & Young Terco 10

13 2. Presentation of the quarterly information and summary of significant accounting practices This individual and consolidated quarterly information for the nine-month period ended, was prepared in accordance with accounting practices adopted in Brazil, which comprise Brazilian Securities and Exchange (CVM) rules and Brazilian Financial Accounting Standards Board (CPC) pronouncements, interpretations and guidance. The consolidated quarterly information is also in accordance with International Financial Reporting Standards (IFRS) applicable to real estate development entities in Brazil, as approved by the CPC, by the CVM and by the 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 in regard to revenue recognition and related costs and expenses from real estate development operations during the construction (percentage of completion method POC). This quarterly information was prepared according to accounting principles, practices and criteria in line with those adopted in the preparation of the annual financial statements for the year ended December 31, Therefore, this quarterly information is to be read in conjunction with the financial statements. This quarterly information was prepared under CVM SEP/SNC Circular Letter No. 003/2011 and guidance from Technical Pronouncement CPC 21 Interim Financial reporting. The information contained in notes which were not subject to significant changes or had immaterial information in comparison to December 31, 2011 was not presented in this quarterly information. On November 5, 2012, management approved this quarterly information and authorized its disclosure. 2.1 New IFRS and Interpretations from IASB International Financial Reporting Interpretations Committee) IFRIC New IASB pronouncements were published and are described as follows: IFRS 9 Financial Instruments Classification and Measurement - IFRS 9 closes the first part of the process to substitute for 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, based on how the entity manages its financial instruments (its business model) and the contractual cash flow characteristic of financial assets. The standard also requires adoption of a single method to determine impairment losses. This standard will be effective for annual periods beginning January 1, 2015; Ernst & Young Terco 11

14 2. Presentation of the quarterly information and summary of significant accounting practices (Continued) 2.1 New IFRS and Interpretations from IASB International Financial Reporting Interpretations Committee) IFRIC (Continued) IFRS 10 Consolidated Financial Statements - IFRS 10 establishes principles for presentation and preparation of the consolidated financial statements when an entity controls one or more entities. IFRS 10 replaces the requirements for consolidation 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 picture of joint arrangements, focusing on the rights and obligations of the arrangement rather than on its legal form. The standard addresses inconsistencies in the treatment of a joint arrangement, requiring one single method to treat jointly controlled entities by the equity method. IFRS 13 supersedes IAS 31 Joint Ventures and SIC-13 Jointly Controlled Entities - Non-Monetary Contributions by Shareholders, and is effective for annual periods beginning on or after January 1, IFRS 12 Disclosures of Investments in Other Entities - IFRS 12 is a new and comprehensive standard on the disclosure requirements of all forms of interests in other entities, including subsidiaries, joint ventures, affiliates and nonconsolidated structured entities. IFRS 12 becomes effective for annual periods beginning on or after January 1, IFRS 13 Fair value measurement - IFRS 13 sets new requirements on how to measure fair value and disclosures relating to IFRS. The standard is effective for annual periods beginning on or after January 1, The Company is assessing the impact of these new pronouncements on its consolidated financial statements. There are no other standards or interpretations issued and not yet adopted that may, based on management s opinion, have a significant impact on P&L or equity reported by the Company. Ernst & Young Terco 12

15 3. Cash and cash equivalents Company Consolidated Description 09/30/ /31/ /30/ /31/2011 Cash and banks 1, ,999 83,763 Short-term investments 164, , , ,349 Total 166, , , ,112 The Company s investments are made through exclusive investment funds or in transactions performed directly with first-tier financial institutions. The Company s policy consists in investing in funds or directly in conservative, highly liquid financial instruments. The yields on these investments are pegged to the Interbank Deposit Certificate (CDI), ranging from 90% to 105% of CDI, according to the nature and timing of each instrument. At, average annual profitability of the Company s short-term investments corresponded to % of CDI. 4. Trade accounts receivable Trade accounts receivable Real estate Company Consolidated development (a) 09/30/ /31/ /30/ /31/2011 Units completed 1,983 6, , ,637 Units not completed , ,393 (-) Present value adjustment - - (38,987) (31,090) (-) Discount for bond securitization - (37) (10) (49) (-) Allowance for doubtful accounts (ADA) - (1,637) - (1,636) 1,983 4,414 1,289,845 1,044,255 Current portion 1,920 4,319 1,103, ,010 Noncurrent portion , ,245 Trade accounts receivable Services rendered Real estate brokerage - - 3,795 2,981 Firm-price construction contract , , , ,139 (a) Given the revenue recognition criteria, trade accounts receivable from units sold yet not completed are not fully reflected in the financial statements, as recording them is limited to the portion of revenue posted to the Company s books, net of portion already received. Trade accounts receivable not recognized in the financial statements as presented in Note Ernst & Young Terco 13

16 4. Trade accounts receivable (Continued) At and December 31, 2011, consolidated trade accounts receivable balance is net of present value adjustment, amounting to R$ 38,987 and R$ 31,090, respectively. The Company calculated present value of trade accounts receivable for units not completed and recorded the amount under the criteria described in CPC 12. Average discount rate of 7.0% p.a. was used. Trade accounts receivable from real estate sold are substantially restated based on the National Civil Construction Index (INCC) variation until the keys are handed over. After the keys are handed over, these amounts by the General Market Price Index (IGPM) and bear interest of interest 12% p.a. For trade accounts receivable for real estate units sold, no allowance is set up for doubtful accounts, as unit ownership is only transferred to the customer when the customer has no financial liability with the Company. Accordingly, recovery of trade accounts receivable is 100% guaranteed, as real estate units sales agreements set forth termination for payment failure, and, once such termination is formalized, the Company has the right to resell the real estate unit. At and December 31, 2011, trade accounts receivable for real estate development and services rendered, classified as current assets, mature as follows: Consolidated Short-term receivables 09/30/ /31/2011 Falling due 4Q , ,887 1Q , ,082 2Q ,335 70,076 3Q , ,628 1,209, ,673 Overdue Up to 30 days 6,766 23,849 From 31 to 60 days 3,561 1,075 From 61 to 90 days 1, From 91 to 120 days 3, From 121 to 150 days 1,335 2,102 From 151 to 180 days 2, Over 180 days 15,028 5,685 33,994 33,476 Total current portion 1,243, ,149 Ernst & Young Terco 14

17 4. Trade accounts receivable (Continued) Noncurrent receivables as of and December 31, 2011 are expected to be received as follows: Year Until September/ , ,316 Until September/ ,512 17,592 Until September/ ,506 8,589 After October/ ,731 22,748 Total 185, , Properties for sale Represented by land for development, real property units completed and under construction, as follows: Ernst & Young Terco 15

18 5. Properties for sale (Continued) 5.1. Land units for development Per venture (Company) 09/30/ /31/2011 Land unit Porto Velho/RO 1,031 1,030 Land unit Valparaiso Serra/ES Land unit Vicente Pires - Taguatinga/DF - 28,124 Total Company 1,865 29,988 Per SCP, SPE or venture (subsidiaries) 09/30/ /31/2011 Direcional Canário Engenharia Ltda. 122,134 - Direcional Taguatinga Engenharia Ltda. (a) 31,920 23,598 Direcional Água Branca Empreendimentos Imobiliários Ltda 27,623 29,649 Direcional Pilar Empreendimentos Imobiliários Ltda 26,104 - Direcional Água Marinha Empreendimentos Imobiliários Ltda 24,859 26,757 Direcional Santo Antônio Empreendimentos Imobiliários Ltda (a) 23,698 23,226 Direcional Rio Branco Empreendimentos Imobiliários Ltda 20,004 4,175 Direcional Safira Empreendimentos Imobiliários Ltda (a) 18,359 18,899 Direcional Santa Rosa Empreendimentos Imobiliários Ltda 17,553 13,359 Direcional Agua Das Flores Empreendimentos Imobiliários Ltda 17,396 17,125 Direcional Alegre Empreendimentos Imobiliários Ltda 15,872 22,380 Direcional Construtora Valparaíso Ltda. (a) 15,525 15,505 Direcional Sena Madureira Empreendimentos Imobiliários Ltda 15,500 16,190 Direcional Arapiraca Empreendimentos Imobiliários Ltda 14,909 16,320 Direcional Xapuri Empreendimentos Imobiliários Ltda 14,297 13,134 Direcional Âmbar Empreendimentos Imobiliários Ltda (a) 14,100 9,836 Direcional Diamante Empreendimentos Imobiliários Ltda (a) 13,473 9,359 Direcional Turquesa Empreendimentos Imobiliários Ltda 12,986 12,252 Direcional Coruripe Empreendimentos Imobiliários Ltda 12,888 12,382 Ônix Empreendimentos Imobiliários Ltda (a) 11,966 7,622 Arinos Empreendimentos Imobiliários Ltda 10,615 10,591 Seabra Empreendimentos Imobiliários Ltda (a) 10,436 5,731 Citrino Empreendimentos Imobiliários Ltda 9,964 9,932 Direcional Leopoldina Empreendimentos Imobiliários Ltda 9,692 9,675 Direcional Rubi Empreendimentos Imobiliários Ltda (a) 9,528 8,214 Coral Empreendimentos Imobiliários Ltda 8,541 8,466 Direcional Riachos Empreendimentos Imobiliários Ltda 8,299 8,222 Bom Sucesso Incorporação E Investimentos Imobiliários S.A. (a) 7,592 7,560 Direcional Malaquita Empreendimentos Imobiliários Ltda 7,430 7,386 Direcional Anadia Empreendimentos Imobiliários Ltda 7,413 6,122 Direcional Igaci Empreendimentos Imobiliários Ltda 7,381 7,174 Direcional São Miguel Empreendimentos Imobiliários Ltda 7,239 6,198 Direcional Carneiros Empreendimentos Imobiliários Ltda 7,045 13,908 Direcional Ouro Branco Empreendimentos Imobiliários Ltda 5,596 - Direcional Campinas Engenharia Ltda. 5,501 5,409 Geminiano Projeto 01 Empreendimentos Imobiliários Ltda 4,982 4,378 Santa Margarida Empreendimentos Imobiliários Ltda (a) 4,245 3,445 Direcional Feijó Empreendimentos Imobiliários Ltda 4,169 3,817 Direcional Azurita Empreendimentos Imobiliários Ltda (a) - 11,937 Direcional Cajueiro Empreendimentos Imobiliários Ltda - 7,336 Direcional Trincheiras Empreendimentos Imobiliários Ltda (a) - 7,919 Other 19,105 15,925 Total subsidiaries 625, ,113 Total consolidated 627, ,101 Company Consolidated Description 09/30/ /31/ /30/ /31/2011 Current portion , ,300 Noncurrent portion 1,865 29, , ,801 Total 1,865 29, , ,101 (a) The Company s development for these land units will be phased, therefore, the balance represents the amount of the other phases of projects to be developed. Ernst & Young Terco 16

19 5. Properties for sale (Continued) 5.2. Completed real estate units Per venture (Company) 09/30/ /31/2011 Completed units Solares Other Total Company Per SCP, SPE or venture (subsidiaries) 09/30/ /31/2011 Direcional Âmbar Empreendimentos Imobiliários Ltda 18,862 3,951 Direcional Safira Empreendimentos Imobiliários Ltda 15,085 - Direcional Construtora Valparaíso Ltda. 12,783 10,014 Direcional Diamante Empreendimentos Imobiliários Ltda 7,504 - Direcional TSC Jamari Empreendimentos Imobiliários Ltda 7,248 - SCP - Direcional/DAN/Gontijo Fernandes - Jacundá 5,814 9,846 Direcional TSC Jatuarana Empreendimentos Imobiliários Ltda 2,619 - SCP - Direcional/ACR - Lago 2,386 2,298 Jonasa Empreendimentos Imobiliários Ltda. 1,585 - Direcional TSC Rio Madeira Empreendimentos Imobiliários Ltda 1,538 1,374 SCP - Direcional/ACR - Paradiso 1,373 1,814 Aterpa - Rio de Janeiro 1,066 1,379 Ernane Agricola Empreendimentos Imobiliários Ltda Capela Empreendimentos Imobiliários Ltda - 8,310 Rubelita Empreendimentos Imobiliários Ltda SCP - Direcional/ASCC/Diedro-Eliza Miranda 126 1,839 Other 1,291 1,627 Total subsidiaries 80,276 43,283 Total consolidated 81,003 43,898 Ernst & Young Terco 17

20 5. Properties for sale (Continued) 5.3. Real estate units under construction SCP, SPE or venture 09/30/ /31/2011 Zircone Empreendimentos Imobiliários Ltda (a) 49,121 40,591 Ônix Empreendimentos Imobiliários Ltda 13,928 13,131 Direcional Diamante Empreendimentos Imobiliários Ltda 12,270 14,899 Flourita Empreendimentos Imobiliários Ltda 11,694 13,280 Jonasa Empreendimentos Imobiliários Ltda. 11,389 12,830 Direcional Azurita Empreendimentos Imobiliários Ltda 11,069 3,129 Direcional Tarauacá Empreendimentos Imobiliários Ltda 10,309 11,872 Direcional Abaré Empreendimentos Imobiliários Ltda 8,471 4,408 Direcional Porto Acre Empreendimentos Imobiliários Ltda 8,222 5,887 Direcional Ametista Empreendimentos Imobiliários Ltda 7,153 9,051 Direcional Taguatinga Engenharia Ltda. 7,028 8,194 Direcional Cajueiro Empreendimentos Imobiliários Ltda 5,477 - Direcional Rubi Empreendimentos Imobiliários Ltda 4,201 8,929 Andrade Valladares Residencial Ltda - SCP Floramar 3,567 3,485 Direcional Palmeira Empreendimentos Imobiliários Ltda 2,855 - SCP - Direcional/ASCC/Diedro-Eliza Miranda 2,182 2,608 Alexandrita Empreendimentos Imobiliários Ltda 2,139 2,572 Direcional Trincheiras Empreendimentos Imobiliários Ltda 2,028 6,773 Direcional Opala Empreendimentos Imobiliários Ltda 1,888 1,043 Seabra Empreendimentos Imobiliários Ltda 1,886 2,095 Direcional Brasileia Empreendimentos Imobiliários Ltda 1,763 3,393 Direcional Capixaba Empreendimentos Imobiliários Ltda 1, Direcional Esmeralda Empreendimentos Imobiliários Ltda 1, Direcional Patrimar Maragogi Empreendimentos Imobiliários Ltda 1,397 1,352 Direcional Jordão Empreendimentos Imobiliários Ltda 1,276 - Direcional Safira Empreendimentos Imobiliários Ltda - 10,710 Direcional Âmbar Empreendimentos Imobiliários Ltda - 16,625 Direcional TSC Jamari Empreendimentos Imobiliários Ltda - 8,592 Direcional TSC Jatuarana Empreendimentos Imobiliários Ltda - 4,790 Direcional Silvestre Ltda 793 3,031 Other 1,042 1,361 Total 186, ,346 (a) On August 9, 2011, the Company acquired 60% of Direcional Zircone Empreendimento Imobiliários Ltda. ( Zircone Empreendimentos ) units of interest from JHSF Participações S.A. for R$ 37,000, to be paid in 38 installments restated by the INCC. With such acquisition the Company became holder of 100% of the venture. The acquisition amount was recorded at present value, which is R$ 27,909. Considering that such acquisition corresponded to a single project with finite useful life and at an early stage, this operation was considered a purchase of assets 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 posted to P&L when real estate is sold. For the nine-month period ended, interest amounting to R$ 34,802 (R$ 23,786 for the year ended December 31, 2011) was capitalized in inventory accounts. Of this amount, R$ 6,077 remained capitalized for unsold real estate units. The average rate used to capitalize interest was 10.26% in 3Q2012 (10.92% for the year ended December 31, 2011). Ernst & Young Terco 18

21 6. Related parties 6.1. Related companies Assets Company Consolidated 09/30/ /31/ /30/ /31/2011 Receivables partners in projects (a) Tsc Engenharia Ltda 29,358 24,213 30,923 24,337 Comim Construtora Ltda ,541 19,343 Dam Incorporações Ltda 4,470 5,641 4,471 5,641 Ager Incorporações Imobiliárias Ltda 6,819 4,334 6,819 4,334 Siena Participações Ltda - - 1,795 1,752 L/V Consultoria Empresarial Ltda - - 1,795 1,752 Edifica Empreendimento Arq. E Engenharia S/A - - 3,322 1,740 Other 1,532 1,741 4,647 4,216 42,179 35,929 67,313 63,115 Current account - projects ( b) Scp Manaus - Eliza Miranda - 3,796-2,278 Zircone Empreendimentos imobiliários Ltda 1,678 1,678 1,678 1,678 Santa Margarida 1,486 1,486 1,486 1,486 Direcional Opala Empreendimentos Ltda 1,058 1,058-1,058 Seabra Empreendimentos imobiliários Ltda 30,916 17,876 1, Scp Meu Orgulho Infra 1,468 1, Scp Parque Prado - 4, Scp Paradiso , Scp Santa Mônica 1,181 3, Other ,000 1,879 39,036 46,739 5,950 9,201 Total 81,215 82,668 73,263 72,316 Current portion 40,532 47,912 32,580 37,560 Noncurrent portion 40,683 34,756 40,683 34,756 Liabilities Company Consolidated Payables partners in projects (a) 09/30/ /31/ /30/ /31/2011 Edifica Empreendimento Arq. E Engenharia S/A - - 2,793 1,794 TSC Engenharia Ltda - - 1,719 - Cac Engenharia Ltda Other ,732 2,708 Current account - projects ( b) Direcional Engenharia S.A. - Scp Club House ,358 Direcional Opala Empreendimentos Imobiliários Ltda ,058 Scp Alterosa 2,585 2, Seabra Empreendimentos imobiliários ltda 2,180 2, Direcional Agua Branca Empreend. Imobiliários Ltda 17,225 17, Direcional Estrela Empreend. Imobiliários Ltda 7,000 7, Direcional Rubi Empreendimentos Imobiliários Ltda - - 2,699 - Other , ,740 29,490 4,607 6,252 Current liabilities 29,740 29,490 10,339 8,960 Ernst & Young Terco 19

22 6. Related parties (Continued) 6.1. Related companies (Continued) (a) Receivables partners in projects The Company enters into intercompany loan agreements with some venture partners, usually non-controlling shareholders of the referred to SPE. These operations are settled when the construction is completed. Such operations are restated at CDI, plus spread of up to 4.13% p.a. or the General Market Price Index (IGP-M), plus spread of up to 1% p.m. The financial impact on the Company for the nine-month period ended was net financial income of R$ 5,715 (R$ 4,428 as of September 30, 2011). (b) Current account - projects Such non-interest bearing operations are intended solely to contribute funds for construction. Partners are currently discussing on the adjustment of the aforesaid amounts Management key personnel compensation Total annual compensation of management members and directors in 2011 and approved for 2012 is as follows: 2012 Board of Directors Statutory Board Total Number of members Annual fixed compensation (R$) 480,000 2,220,000 2,700,000 Variable compensation (R$) - 4,260,000 4,260, ,000 6,480,000 6,960, Board of Directors Statutory Board Total Number of members Annual fixed compensation (R$) 167,520 1,812,000 1,979,520 Variable compensation (R$) - 1,608,450 1,608, ,520 3,420,450 3,587,970 Key management members compensation also includes stock option plans, which is detailed in Note 21. The Company does not have any private pension plans or any other retirement or post-employment plan. Ernst & Young Terco 20

23 7. Investments in subsidiaries and jointly controlled entities (individual financial information) Changes in investments for the period ended are as follows: Subscription Company Interest % 12/31/2011 Dividends / amortization Equity pickup (reduction) of capital/fcc 09/30/2012 Scp Direcional/Mrv - Serra Da Canastra (a) 50.00% Scp Direcional/Aterpa - Santa Ines (a) 50.00% Scp Direcional/Aterpa - Cidade Nova (a) 50.00% Scp Direcional/Lasa - Life Residence (a) 50.00% 221 (131) Scp Direcional/Capla - Brasilia % 78 (437) (6) Scp Direcional/Lucas/Tulio - Club House % (211) 4, ,468 Scp Direcional/Spl - Campinas (a) 50.00% 1,002 (950) 328 (315) 65 Scp Direcional/Eolica/Spl - Retiro Dos Artistas 50.00% 1,453 (100) 368 (644) 1,077 Scp Direcional/Diedro/Ascc - Eliza Miranda Manaus 40.00% 21,202 (4,040) 1,035 (520) 17,677 Scp Direcional/Dan/G.Fernandes - Jacunda 88.00% 27,489-2,892 (5,065) 25,316 Scp Direcional/Acr - Ouro Preto (Gran Parque) 97.19% 1,329 (974) (378) Direcional Taguatinga Engenharia Ltda % 88,680-26,566 8, ,207 Direcional Canário Engenharia Ltda 99.90% 2, ,251 34,151 Altana Empreendimentos Imobiliarios Ltda 50.00% Direcional Campinas Engenharia Ltda 99.90% 4, ,727 Direcional Valparaiso Ltda 80.00% 16,450 - (597) ,023 Jonasa Empreendimentos Imobiliarios Ltda 80.00% 57,009 (3,453) 2,660 (5,160) 51,056 Scp Direcional/Edifica - Chopin Permuta 79.00% 552 (900) (11) Direcional Diamante 99.99% 63,522-7,880 1,663 73,065 Direcional Ametista Empr. Imobil. Ltda 99.99% 8,301-4,087 (955) 11,433 Direcional Opala Empreendimentos Ltda 98.10% 16,236 - (1,841) (7,553) 6,842 Direcional Esmeralda Empreendimentos Imob. Ltda (a) 50.00% 19,461-6,193 (4,987) 20,667 Direcioanal Safira Empreendimentos Imob % 28,653 - (1,642) 10,458 37,469 Direcional Rubi Empreendimentos Ltda 99.99% 26, ,368 (5,921) 38,073 Spe Direcional Ambar Empreendimentos Ltda 66.67% 27,330 (531) 1,532 8,191 36,522 Scp Direcional Gran Riserva 98.10% 2,599 - (574) (871) 1,154 Scp Direcional Paradiso 98.10% 3,680 - (185) 756 4,251 Scp Direcional/Acr Maura Valadares 98.10% (290) 208 Scp Direcional Acr/ Lago Sul 98.10% 8,488 - (1,015) 14,275 21,748 Direcional Tsc Rio Madeira Emp. Imobil. Ltda 80.00% 22,524 (322) (1,168) (18,161) 2,873 Direcional Tsc Jamari Emp. Imobil. Ltda 80.00% 7,033 (269) 396 3,176 10,336 Direcional Tsc Lauro Sodre Emp. Imob. Ltda 80.00% (5) - Direcional Tsc Jatuarana Emp. Imobil. Ltda 80.00% 16,235 (475) (3,221) 2,125 14,664 Scp Le Parc De France 98.10% 1,158 (1,217) Scp Direcional/Acr - Santa Mônica 98.10% (324) (718) (141) Onix Empreendimentos Imobiliarios Ltda 99.90% 47,878-11,989 41, ,354 Malaquita Empreendimentos Imobil. Ltda 99.90% 7, ,427 Una Empreendimentos Imobiliarios Ltda 99.90% 8,157-5,582 1,067 14,806 Alexandrita Empreendimentos Ltda (a) 50.00% 4,580 - (2,578) 3,201 5,203 Bujari Empreendimentos Imobiliários Ltda 99.90% 10,478 - (3,358) 786 7,906 Coral Empreendimentos Imobiliários Ltda 99.90% 5,049 - (28) 214 5,235 Ernst & Young Terco 21

24 7. Investments in subsidiaries and jointly controlled entities (individual financial information) (Continued) Subscription (reduction) of capital/fcc 09/30/2012 Company Interest % 12/31/2011 Dividends / amortization Equity pickup Zircone Empreendimentos Imobiliarios Ltda % 41,482-11,723 (19,464) 33,741 Jaspe Emprendimentos Imobiliários Ltda 99.90% Direcional Corretora De Imóveis % 2,869-1,701 (943) 3,627 Azurita Empreendimentos Imobiliários Ltda 99.90% 10,902-4,983 (2,851) 13,034 Abaré Empreendimentos Imobiliário Ltda 99.90% 2,906-4, ,857 Água Marinha Empreendimentos Imobil. Ltda 99.90% 5,673 - (26) 110 5,757 Anadia Empreendimentos Imobil. Ltda 99.90% 1,326 - (52) 273 1,547 Andaraí Empreendimentos Imobiliários Ltda 99.90% 13,052 - (1,842) (11,211) (1) Direcional Turquesa Empreend. Imobiliários Ltda 99.90% 2, ,866 Flourita Empreendimentos Imobiliários Ltda 99.90% 52,313-5,568 (16,643) 41,238 Direcional Azeviche Empreend. Imob. Ltda (a) 55.20% Arinos Empreendimentos Imobiliários Ltda 99.90% (332) Direcional Assis Brasil Empreend. Imob. Ltda (a) 50.00% Citrino Empreendimentos Imobiliários Ltda 99.90% Turmalina Empreendimentos Imob. Ltda 99.90% 1, ,944 Scp Direcional Petropólis 99.90% (713) (66) Scp Direcional Ozias Monteiro 99.90% (882) Seabra Empreendimentos Imobiliários Ltda 99.90% 10,343-2,989-13,332 Maragogi Empreendimentos Imobiliários Ltda (a) 45.00% 2,163-2,310 (500) 3,973 Scp Cidadão Xi 99.90% 16,295 - (3,201) (6,582) 6,512 Scp Pro-Moradia II 99.90% 32,302-5,869 (11,040) 27,131 Capela Empreendimentos Imobiliários Ltda % 12,625 - (110) (8,106) 4,409 Direcional Porto Acre Empreendimentos 99.90% 4, (747) 3,905 Direcional Feijo Empreendimentos Imob. Ltda 99.90% 1, ,874 Direcional Capixaba Empreend. Imobiliários Ltda 99.90% 17,802-14,483 (2,786) 29,499 Scp Meu Orgulho 99.90% 27,790-28,642 (25,235) 31,197 Andrade Valladares Residencial Ltda - Scp Floramar (a) 50.00% 5,502-2,612 (770) 7,344 Geminiano Empreendimentos Imobiliários Ltda 50.00% 4,333 - (103) 973 5,203 Direcional Rio Branco Empreendimentos 99.90% ,095 1,374 Scp Direcional Comim Meu Orgulho 62.00% 35,191 - (1,960) (9,467) 23,764 Scp Sarandi - Andrade Valladares Eng. E Construção (a) 50.00% Direcional Santa Rosa Empreend. Imob. Ltda 99.90% 5, ,577 7,928 Santo Antônio Empreendimentos Ltda 99.99% 23, ,757 Direcional Arapiraca Empreend. Imob. Ltda 99.90% 4,553 - (1) 241 4,793 Direcional Xapuri Empreendimentos Imob. Ltda 99.90% (4) Direcional São Miguel Empreendimentos Imob. Ltda 99.90% 1,699 - (1) 3,500 5,198 Direcional Tarauacá Empreendimentos Imob. Ltda 99.90% 17, (4,698) 12,843 Direcional Igaci Empreendimentos Imob. Ltda 99.90% 7,184 - (1) 189 7,372 Direcional Cajueiro Empreendimentos Imob. Ltda 99.90% 1,302 - (203) 1,867 2,966 Direcional Riachos Empreendimentos Imob. Ltda (a) 50.00% Direcional Alegre Empreendimentos Ltda 99.90% 3, ,512 9,887 Scp Boa Casa Empreendimentos Imobiliários Ltda % 374-1,833 2,000 4,207 Direcional Carneiros Empreendimentos Imob. Ltda 99.90% Ernst & Young Terco 22

25 7. Investments in subsidiaries and jointly controlled entities (individual financial information) (Continued) Subscription (reduction) of capital/fcc 09/30/2012 Company Interest % 12/31/2011 Dividends / amortization Equity pickup Direcional Água Branca Empreendimentos Imob. Ltda 99.90% 3,283 - (82) 2,331 5,532 Direcional Coruripe Empreendimentos Imob. Ltda 99.90% (75) 737 1,338 Scp Direcional Alterosa Empreendimentos Imob. Ltda 62.75% 5,799 (3,626) 1,264 1,688 5,125 Direcional Leopoldina Empreendimentos Imob. Ltda 99.90% Scp Bairro Carioca % 18,946-21,661 (18,648) 21,959 Direcional Sena Madureira Emprend. Imob. Ltda 99.90% ,763 8,428 Direcional Tricheiras Empreend. Imob. Ltda 77.50% 3,093-3,935 1,544 8,572 Direcional Aguas Das Flores Empreend. Imob. Ltda 99.90% 1, ,396 Direcional Camaragibe Empreendimentos Imob. Ltda 99.90% Direcional Jequia Empreendimentos Imob. Ltda 99.90% ,208 Direcional Palmeira Empreendimentos Imob. Ltda 99.90% 737-2,924 (131) 3,530 Scp Aterrado Do Leme 75.00% 1,165-3,201 1,975 6,341 Scp Macapá 99.90% ,529 12,312 24,841 Direcional Ouro Branco Empreendimentos Imob. Ltda 99.90% - - (1) 5,559 5,558 Scp Riacho Fundo 70.00% ,289 3,309 Direcional Pilar Empreendimentos Imob. Ltda 99.90% Scp Porto Velho 99.90% - - 1,164 2,200 3,364 Direcional São Primiano Empreend. Imob. Ltda (a) 50.00% 408 (50) (3) Scp Direcional/Aterpa - Rio De Janeiro (a) 45.00% 6, ,135 (1,360) 7,179 Scp Direcional/Edifica/Patrimar - Chopin 31.15% (9) (5) Maura Valadares Gontijo Spe Ltda (a) 50.00% 496 (428) (29) Rubelita Empreendimentos Imobiliários Ltda (a) 50.00% 4,532 (3,176) 14-1,370 Direcional Silvestre Empreendim. Imobiliários Ltda 82.00% 4, ,555 2,665 18,860 Alexandria Empreendimentos Imob. Ltda 50.00% 4,561 (876) 302 (750) 3,237 Direcional Sodalita Empreendimentos Imob % 1,284 (38) ,284 Direcional Oiti Empreendimentos Imobiliários Ltda % 774 (328) (1) Bom Sucesso Incorp. E Invest. Imobiliário S.A % 6,899 - (2) - 6,897 Santa Margarida Empreendimentos imobiliários ltda(a) 47.50% 2,116 (626) (1) 626 2,115 Direcional Jordão Empreendimentos Imobil. Ltda (a) 50.00% ,155 2,032 Direcional Brasileia Empreendimentos Imobiliários (a) 50.00% 8,411 1,259 6,317 (7) 15,980 Belo Monte Empreendimentos Ltda (a) 50.00% Direcional Spl Ponciano Empreend. Imob. Ltda (a) 50.00% ,105 Scp Direcional/V.Gontijo - Cisão 50.00% 212 (212) Diresomattos Gutierrez Emp. Imobiliários Ltda (a) 50.00% (18) (605) 322 Scp Direcional/Somattos - Bartira Mourão (Antares) (a) 50.00% 788 (10) (8) (150) 620 Scp Direcional/Somattos - Tereza Motta (Centauro) (a) 50.00% 6 (6) Ernane Agrícola Empreendimentos Imobiliários Ltda (a) 50.00% 4,678 (1,453) 15 (3,050) 190 1,014,960 (16,382) 220,165 1,098 1,219,841 (a) These represent jointly controlled entities. Ernst & Young Terco 23

26 7. Investments in subsidiaries and jointly controlled entities (individual financial information) (Continued) Changes in investments for the period ended December 31, 2011 are as follows: Company Equity interest % 12/31/2010 Dividends / amortization Equity pickup Subscription (reduction) of capital/fcc 12/31/2011 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 % 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 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 10.00% (5) SCP - Direcional/ASCC/Diedro-Eliza Miranda 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) 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 Direcional TSC Rio Madeira Empr Imobiliários Ltda 80.00% 8,069 (454) (4,314) 19,223 22,524 Direcional TSC Jamari Emp. Imobiliários Ltda 80.00% 4,693 (1,616) 102 3,855 7,034 Direcional TSC Lauro Sodré Emp. Imobiliários Ltda 80.00% Direcional TSC Jatuarana Empreendimentos Imobiliários 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 Imobiliários Ltda 99.90% 6, (164) 948 7,383 Una Empreendimentos Imobiliários Ltda 99.90% 2,630 (1) 6,091 (563) 8,157 Alexandrita Empreendimentos Imobiliários Ltda (a) 50.00% 3,956 - (855) 1,478 4,579 Bujari Empreendimentos Imobiliários Ltda 99.90% 2,936-4,533 3,008 10,477 Ernst & Young Terco 24

27 7. Investments in subsidiaries and jointly controlled entities (individual financial information) (Continued) Subscription (reduction) of capital/fcc 12/31/2011 Company Equity interest % 12/31/2010 Dividends / amortization Equity pickup Coral Empreendimentos Imobiliários Ltda 99.90% 4,633 - (91) 507 5,049 Zircone Empreendimentos Imobiliários Ltda % 6,831 (933) 12,069 23,516 41,483 Jaspe Empreendimentos Imobiliários Ltda 99.90% Direcional Corretora de Imóveis S.A % 2,348 (1,791) 2,696 (384) 2,869 Direcional Azurita Empreendimentos Imobiliários 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 (a) 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 Seabra Emp. Imobiliários Ltda - Total Ville Porto Velho 99.90% 8,286-8,629 (6,571) 10,344 Direcional Patrimar Maragogi Emp. Imobiliários 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 Imobiliários Ltda 99.90% 215-1,161 2,944 4,320 Direcional Feijo Empreendimentos Imobiliários Ltda 99.90% 1,349 - (5) 183 1,527 Direcional Capixaba Empreendimentos Imobiliários 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 Direcional Tarauacá 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 Ernst & Young Terco 25

28 7. Investments in subsidiaries and jointly controlled entities (individual financial information) (Continued) Subscription (reduction) of capital/fcc 12/31/2011 Company Equity interest % 12/31/2010 Dividends / amortization Equity pickup 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 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 Jequia Empreendimentos Imobiliários Ltda 99.90% - - (6) Direcional Palmeira Empreendimentos Imobiliários Ltda 99.90% - - (26) SCP Aterrado do Leme 75.00% ,165 Direcional São Primiano Empreendimentos Imobiliários Ltda (a) 50.00% - 46 (14) Aterpa - Rio de Janeiro(a) 45.00% 9,323 (1,179) (318) (1,176) 6,650 Patrimar Cl. Manoel (a) 31.15% 24 (19) (14) - (9) SPE Maura Gontijo (a) 50.00% 2,670 (2,127) (129) SPE - Rubelita Empreendimentos Imobiliários Ltda (a) 50.00% 4,267 (110) (255) 630 4,532 Direcional Silvestre Ltda (a) 82.00% ,152 2,629 4,247 Alexandria Empreendimentos Imobiliários Ltda (a) 50.00% 6, ,372 (3,486) 4,561 Direcional Sodalita Empreendimentos (a) 50.00% 1,287 (3) - - 1,284 Direcional Oiti Empreendimentos Imobiliários Ltda (a) 50.00% 1,048 (239) (35) Bom Sucesso Incorporação e Invest. Imobiliários S.A. (a) 28.00% 6,902 - (2) - 6,900 Santa Margarida Empreendimentos Imobiliários Ltda (a) 47.50% 2,118 (15) (3) 15 2,115 Direcional Jordão Empreendimentos Imobiliários Ltda (a) 50.00% Direcional Brasileia Emp. Imobiliários Ltda (a) 50.00% 2,480 (386) 4,005 2,313 8,412 Direcional Belo Monte Emp. Imobiliários Ltda (a) 50.00% Direcional SPL Ponciano Emp. Imobiliários Ltda (a) 50.00% V. Gontijo - Cisão (a) 50.00% 313 (48) (54) SPE - Diresomattos Gutierrez Emp. Imobiliários 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 Imobiliários Ltda (a) 50.00% 5,468 (356) (434) - 4,678 Total 661,609 (125,045) 226, ,807 1,014,960 (a) These represent jointly controlled entities. Ernst & Young Terco 26

29 7. Investments in subsidiaries and jointly controlled entities (individual financial information) (Continued) Summary of the Company s investees financial information as of is as follows: Interest Current Assets Liabilities Income statement Noncurren t Current Noncurrent Equity Net sales and service revenues Gross profit Net operating expenses Financial income (expenses ) Company SCP - Direcional/MRV - Serra da Canastra 50.00% (2) 226 SCP - Direcional/Aterpa - Santa Inês 50.00% SCP - Direcional/Aterpa - Cidade Nova 50.00% (5) 3 (1) 25 SCP - Direcional/Lasa - Águas Claras II 50.00% (2) 130 SCP - Direcional/Capla - Brasília % (6) (18) 25 (7) (6) SCP - Direcional/SPL - Campinas 50.00% , (30) 57 (42) 656 SCP - Direcional/Eólica - Quintas do Valqueire 10.00% SCP - Direcional/Eólica - Retiro dos Artistas 50.00% 2, ,153 1, (42) 736 SCP - Direcional/ACR - Green Village 20.00% SCP - Direcional/ACR/Asacop - Província de Vicenza 10.00% SCP - Direcional/ASCC/Diedro-Eliza Miranda 40.00% 40,289 8,866 4, ,193 14,563 3,498 (476) 185 (618) 2,589 SCP - Direcional/DAN/Gontijo Fernandes - Jacundá 88.00% 32,352 1,207 4, ,768 6,661 3,742 (223) 27 (260) 3,286 SCP - Direcional/ACR - Ouro Preto 97.19% (442) 23 (5) (388) Direcional Taguatinga Engenharia Ltda % 192,196 26,513 54,324 40, , ,355 31,383 (3,029) 866 (2,654) 26,566 Direcional Canário Engenharia Ltda % 122,232 31, , , (1) Altana Empreendimentos Imobiliarios Ltda % Direcional Campinas Engenharia Ltda % 206 6,184 1,659-4, Direcional Construtora Valparaíso Ltda % 19,837 16, ,733 20,028 (2,404) (1,030) (746) Jonasa Empreendimentos Imobiliários Ltda % 177,248 2,952 92,849 23,531 63,820 46,638 7,738 (2,113) (834) (1,466) 3,325 SCP - Direcional/Edifica - Edifico Chopin 79.00% (18) 4 - (14) Direcional Diamante Empreendimentos Imobiliarios Ltda 99.99% 108,543 10,898 20,851 25,517 73,073 25,386 9,942 (1,282) 80 (859) 7,881 Direcional Ametista Empreendimentos Imobiliarios Ltda 99.99% 31,145 3,061 2,089 20,682 11,435 14,058 5,699 (1,192) (1) (418) 4,088 Direcional Opala Empreendimentos Imobiliarios Ltda 98.10% 19, ,643 4,820 6,974 3,203 (1,717) (256) 308 (212) (1,877) Direcional Esmeralda Empreendimentos Imobiliarios Ltda 50.00% 105, ,645 26,178 41,334 40,607 13,773 (649) 745 (1,482) 12,387 Direcional Safira Empreendimentos Imobiliarios Ltda 99.99% 69,055 22,652 29,018 25,216 37,473 8,928 (813) (580) 49 (298) (1,642) Direcional Rubi Empreendimentos Imobiliarios Ltda 99.99% 88,003 9,807 33,066 26,668 38,076 55,295 19,243 (251) (62) (1,560) 17,370 Direcional Âmbar Empreendimentos Imobiliarios Ltda 66.67% 86,558 16,074 42,615 5,238 54,779 18,369 3,655 (909) 232 (681) 2,297 SCP - Direcional/ACR - Gran Riserva 98.10% , (374) (233) 38 (17) (586) SCP - Direcional/ACR - Paradiso 98.10% 10, , ,334 (116) (486) (56) (188) SCP - Direcional/ACR - Maura Valadares 98.10% SCP - Direcional/ACR - Lago 98.10% 11,059 20,118 2,146 6,862 22,169 3, (1,723) 25 (125) (1,035) Direcional TSC Rio Madeira Empr % 31, , ,590 2,119 (1,432) (44) 410 (395) (1,461) Direcional TSC Jamari Empr. Imobiliarios Ltda 80.00% 18, , ,921 4, (61) 19 (138) 495 Direcional TSC Lauro Sodré Empr. Imobiliários Ltda 80.00% Direcional TSC Jatuarana Empr. Imobiliarios Ltda 80.00% 38, ,253 10,134 18,331 6,592 (3,663) (178) 14 (199) (4,026) SCP - Direcional/ACR - Le Parc de France 98.10% (150) (82) 156 (14) 1 61 SCP - Direcional/ACR - Santa Mônica 98.10% 1, ,317 1 (144) (13) 8 (5) 82 Ônix Empreendimentos Imobiliários Ltda 99.90% 132,530 12,704 21,856 21, ,455 53,863 12,466 (1,139) 85 (1,255) 10,157 Direcional Malaquita Empreendimentos Imobiliarios Ltda 99.90% 7, , IRPJ / CSLL Net income Ernst & Young Terco 27

30 7. Investments in subsidiaries and jointly controlled entities (individual financial information) (Continued) Interest Current Assets Liabilities Income statement Noncurre nt Current Noncurrent Equity Net sales and service revenues Gross profit Net operating expenses Financial income (expenses ) Company Una Empreendimentos Imobiliarios Ltda 99.90% 5,617 16,785 1,329 6,252 14,821 14,985 6,420 (377) (5) (450) 5,588 Alexandrita Empreendimentos Imobiliarios Ltda 50.00% 36, , ,404 7,942 (4,790) (145) 3 (225) (5,157) Bujari Empreendimentos Imobiliarios Ltda 99.90% 21, ,076 1,341 7,913 4,177 (3,138) (125) 28 (127) (3,362) Coral Empreendimentos Imobiliarios Ltda 99.90% 8, ,988 5, (27) (1) - (28) Zircone Empreendimentos Imobiliarios Ltda % 69,894 50,081 6,720 92,298 20,957 46,864 14,767 (1,475) 103 (1,672) 11,723 Jaspe Empreendimentos Imobiliarios Ltda 99.90% Direcional Corretora de Imóveis S.A % 3, ,627 3,796 3,503 (1,382) (6) (414) 1,701 Direcional Azurita Empreendimentos Imobiliarios Ltda 99.90% 20,442 6,199 6,547 7,048 13,046 15,005 6,775 (1,539) 130 (378) 4,988 Direcional Abaré Empreendimentos Imobiliários Ltda 99.90% 14,594 11,200 9,206 8,724 7,864 14,901 5,622 (564) 17 (488) 4,587 Direcional Água Marinha Empre. Imobiliários Ltda 99.90% 24, ,105 5, (28) 2 - (26) Direcional Anadia Empreendimentos Imobiliários Ltda 99.90% 7, ,609 1, (48) (4) - (52) Andaraí Empreendimentos Imobiliários Ltda 99.90% Direcional Turquesa Empreendimentos Imobiliários Ltda 99.90% 12, ,568-2, Flourita Empreendimentos Imobiliários Ltda 99.90% 72,146 18,944 7,186 42,625 41,279 27,851 7,596 (939) 50 (1,134) 5,573 Direcional Azeviche Empreendimentos Imobiliários Ltda 55.20% Arinos Empreendimentos Imobiliários Ltda 99.90% 35 10, , (326) (326) (1) (6) - (333) Direcional Assis Brasil Empreendimentos Imobiliários Ltda 50.00% 168 6, , Citrino Empreendimentos Imobiliários Ltda 99.90% - 9, , Direcional Turmalina Empreendimentos Imobiliários Ltda 99.90% 2, , SCP - Direcional Petrópolis 99.90% (66) (10) 4 (2) 91 SCP - Direcional Ozias 99.90% (821) (61) (1) - (883) Seabra Empreendimentos Imobiliarios Ltda 99.90% 94,480 4,452 72,334 13,252 13,346 27,964 4,153 (806) (20) (335) 2,992 Direcional Patrimar Maragogi Empr. Imobiliarios Ltda 45.00% 26, ,723 7,024 8,829 14,748 5,526 (168) 201 (425) 5,134 SCP - Cidadão XI 99.90% 7, ,518 1,831 (3,200) (37) 65 (32) (3,204) SCP - Pro Moradia II 99.90% 29, , ,159 19,900 5,975 (4) 1 (97) 5,875 Capela Empreendimentos Imobiliários Ltda % 2,537 2, ,410 9, (723) 100 (308) (110) Direcional Porto Acre Empreendimentos Imobiliarios Ltda 99.90% 10,010 6,802 1,243 11,660 3,909 5,900 1,024 (591) 7 (108) 332 Direcional Feijo Empreendimentos Imobiliarios Ltda 99.90% 584 3, ,300 1, Direcional Capixaba Empreendimentos Imobiliarios Ltda 99.90% 53,781 2,792 7,458 19,587 29,528 32,217 16,300 (973) 282 (1,111) 14,498 SCP - Meu Orgulho 99.90% 38, ,824 1,607 31,228 92,787 29,160 (192) 255 (553) 28,670 Andrade Valladares Residencial Ltda - SCP Floramar 50.00% 17,855 16,156 13,820 5,503 14,688 16,022 6,549 (1,052) 168 (442) 5,223 Geminiano Projeto 01 Empreendimentos Imobiliários Ltda 50.00% 9, , (206) - - (206) Direcional Rio Branco Empreendimentos Imobiliários Ltda 99.90% 20, ,627 1, SCP Direcional/Comim Meu Orgulho - Infra 62.00% 44, , ,329 24,292 (3,665) (53) 1,014 (457) (3,161) SCP Sarandi - Andrade Valladares Residencial Ltda 50.00% Direcional Santa Rosa Empreendimentos Imobiliários Ltda 99.90% 17, ,400 7, Direcional Santo Antônio Empr. Imobiliários Ltda 99.99% 2 23, , (1) Direcional Arapiraca Empreendimentos Imobiliários Ltda 99.90% 14, ,393 4, (1) - - (1) Direcional Xapuri Empreendimentos Imobiliários Ltda 99.90% 14,298-13, (4) - - (4) Direcional São Miguel Empreendimentos Imobiliários Ltda 99.90% 7,245-2,042-5, (1) - (1) Direcional Tarauaca Empreendimentos Imobiliários Ltda 99.90% 23,390 4,120 11,218 3,436 12,856 5, (47) 61 (142) 148 Direcional Igaci Empreendimentos Imobiliários Ltda 99.90% 8 7, , (1) - - (1) Direcional Cajueiro Empreendimentos Imobiliários Ltda 99.90% 7,003 1, ,534 2,970 3,680 1,193 (1,314) (1) (81) (203) Direcional Riachos Empreendimentos Imobiliários Ltda 50.00% 17,198-3,200 12,800 1, IRPJ / CSLL Net income Ernst & Young Terco 28

31 7. Investments in subsidiaries and jointly controlled entities (individual financial information) (Continued) Interest Current Assets Liabilities Income statement Noncurre nt Current Noncurrent Equity Net sales and service revenues Gross profit Net operating expenses Financial income (expenses ) Company Direcional Alegre Empreendimentos Imobiliários Ltda 99.90% 9 24,750-14,863 9, SCP Boa Casa % 4, ,207 2,797 1, (83) 1,833 Direcional Carneiros Empreendimentos Imobiliários Ltda 99.90% 7, , Direcional Água Branca Empr. Imobiliários Ltda 99.90% 6 44,849 29,118 10,200 5, (82) - (82) Direcional Coruripe Empreendimentos Imobiliários Ltda 99.90% 12, ,077-1, (73) (2) - (75) SCP Alterosa - Ribeirão das Neves 62.75% 14, , ,168 40,108 2,354 (286) 224 (277) 2,015 Direcional Leopoldina Empreendimentos Imobiliários Ltda 99.90% 9, , SCP Bairro Carioca % 29, , ,959 82,600 22,285 (26) 422 (1,020) 21,661 Direcional Sena Madureira Empr. Imobiliários Ltda 99.90% 8 23, ,495 8, (76) 665 Direcional Trincheiras Empreendimentos Imobiliários Ltda 77.50% 10,868 17,539 12,165 5,181 11,061 26,552 7,545 (1,736) 16 (747) 5,078 Direcional Agua das Flores Empr. Imobiliários Ltda 99.90% 17, ,000 1, Direcional Estrela Empreendimentos Imobiliários Ltda 99.90% - 7,000 7, Direcional Camaragibe Empr. Imobiliários Ltda 99.90% Direcional Jequia Empr. Imobiliários Ltda 99.90% 1, , Direcional Palmeira Empr. Imobiliários Ltda 99.90% 9,588 1,934 7, ,534 14,346 3,816 (627) (1) (261) 2,927 SCP Macapá 99.90% 27, , ,866 34,039 12,671 (61) 136 (204) 12,542 Direcional Ouro Branco Empr. Imobiliários Ltda 99.90% 5, , (1) - (1) SCP Riacho Fundo 70.00% 2,022 3, , Direcional Pilar Empreendimentos Imobiliários Ltda 99.90% 2 26, , SCP Porto Velho 99.90% 5, , ,367 5,116 1,190 (1) - (24) 1,165 Direcional Engenharia S.A. - SCP Club House % 8, , , Direcional São Primiano Empr. Imobiliarios Ltda 50.00% 1, (4) (1) - (5) Aterpa - Rio de Janeiro 45.00% 19, , ,957 4,040 2,979 (144) (172) (140) 2,523 Patrimar Cl. Manoel(a) 31.15% (18) - 3 (9) SPE Maura Gontijo 50.00% (120) (65) 130 (3) (58) SPE - Rubelita Empreendimentos Imobiliarios Ltda(a) 50.00% 7,040-4,299-2,741 1, (351) (1) (9) 29 Direcional Silvestre Ltda 82.00% 42, ,603 1,220 23,001 31,320 15,979 (1,354) (26) (507) 14,092 Alexandria Empreendimentos Imobiliarios Ltda 50.00% 5,583 1, , (59) 277 (79) 603 Direcional Sodalita Empreendimentos 50.00% 2, , (1) - - (1) Direcional Oiti Empreendimentos Imobiliarios Ltda 50.00% (1) - (1) Bom Sucesso Incorporação e Inv. Imobiliários S.A % 27,441-2,807-24, (7) - - (7) Santa Margarida Empreendimentos Imobiliarios Ltda 47.50% 11,664-7,212-4, (1) (1) - (2) Direcional Jordão Empreendimentos Imobiliarios Ltda 50.00% 4, , (30) (3) (2) 313 Direcional Brasileia Empreendimentos Imobiliarios Ltda 50.00% 51, , ,962 43,935 14,242 (1,553) 208 (262) 12,635 Direcional Belo Monte Empreendimentos Imobiliários Ltda 50.00% Direcional SPL Ponciano Empr. Imobiliarios Ltda 50.00% 5, , ,210 5,085 2,060 (153) (1) (106) 1,800 SCP Aterrado do Leme 75.00% 8, ,455 13,137 4,249 (3) 27 (5) 4,268 SPE - Diresomattos Gutierrez Empr. Imobiliarios Ltda 50.00% (33) (2) - - (35) SCP - Direcional/Somattos - Bartira Mourão 50.00% 1, ,241 - (1) (30) 16 - (15) Ernane Agricola Empreendimentos Imobiliarios Ltda 50.00% 1, (229) 28 2,470, , , ,851 1,411,212 1,099, ,971 (32,080) 7,414 (25,698) 245,607 (a) These represent jointly controlled entities. IRPJ / CSLL Net income Ernst & Young Terco 29

32 7. Investments in subsidiaries and jointly controlled entities (individual financial information) (Continued) Summary of the Company s investees financial information as of December 31, 2011 is as follows: Balance sheets Statements of income Assets Liabilities Net sales and Financial Noncurren Noncurre service Gross Net operating income IRPJ / Company Current t Current nt Equity revenues profit expenses (expenses) CSLL 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 - Retiro dos Artistas 4, ,106 2,906 1,748 (248) (724) 197 (100) (875) 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 Imobiliários 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 Imobiliários Ltda 86,804 11,015 15,501 18,790 63,528 36,850 6,526 (864) 135 (1,196) 4,601 Direcional Ametista Empreendimentos Imobiliários Ltda 11,592 8, ,400 8,302 9,961 3,521 (1,336) (4) (294) 1,887 Direcional Opala Empreendimentos Imobiliários Ltda 31,734 1,900 9,973 7,111 16,550 17,390 4,329 (468) 155 (516) 3,500 Direcional Esmeralda Empreendimentos Imobiliários Ltda 63,229 5,671 14,521 15,458 38,921 42,518 17,576 (589) 323 (1,314) 15,996 Direcional Safira Empreendimentos imobiliários Ltda 57,631 25,373 15,899 38,449 28,656 32,372 10,535 (483) 55 (465) 9,642 Direcional Rubi Empreendimentos imobiliários Ltda 57, , ,628 40,708 15,737 (754) (9) (1,157) 13,817 Direcional Âmbar Empreendimentos imobiliários 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 Empr. Imobiliários Ltda 57,831 1,344 29,985 1,035 28,155 17,543 (4,415) (999) 837 (816) (5,393) Direcional TSC Jamari Empreendimentos imobiliários Ltda 21, , ,792 10, (311) 6 (290) 128 Direcional TSC Lauro Sodré Empr. Imobiliários Ltda Direcional TSC Jatuarana Empr. Imobiliários Ltda 38, ,238 9,915 20,294 25,518 2,614 (288) (11) (733) 1,582 Ernst & Young Terco 30

33 7. Investments in subsidiaries and jointly controlled entities (individual financial information) (Continued) Balance sheets Statements of income Assets Liabilities Financial Net sales and Noncurren Noncurre Gross Net operating income IRPJ / service revenues Company Current t Current nt Equity profit expenses (expenses) CSLL Net income 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 imobiliários Ltda 7, , (135) - (29) (164) Una Empreendimentos Imobiliários Ltda 7,767 4, ,721 8,165 13,818 7,635 (1,237) 153 (454) 6,097 Alexandrita Empreendimentos Imobiliários Ltda 32, ,067 2,489 9,159 18,917 (1,230) (74) 104 (509) (1,709) Bujari Empreendimentos Imobiliários Ltda 22, ,285 4,294 10,488 16,654 4,959 (59) 116 (478) 4,538 Coral Empreendimentos Imobiliários Ltda 8, ,988 5, (91) - - (91) Zircone Empreendimentos Imobiliários Ltda 50,274 19,559 6,248 39,378 24,207 42,992 15,695 (2,445) 57 (1,238) 12,069 Jaspe Empreendimentos Imobiliários Ltda Direcional Corretora de Imóveis S.A. 3, ,869 4,377 4,157 (921) (5) (535) 2,696 Direcional Azurita Empreendimentos Imobiliários 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 Empr. 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 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 Imobiliários Ltda 63,913 4,365 50,430 7,494 10,354 36,588 9,932 (681) 133 (747) 8,637 Direcional Patrimar Maragogi Emp. Imobiliários 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 Imobiliários Ltda 6,817 3,731 2,190 4,034 4,324 7,168 2,215 (950) (1) (102) 1,162 Direcional Feijo Empreendimentos Imobiliários Ltda (a) 3, ,300 1, (5) - - (5) Direcional Capixaba Empreendimentos Imobiliários 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 Empr.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 31

34 7. Investments in subsidiaries and jointly controlled entities (individual financial information) (Continued) Balance sheets Statements of income Assets Liabilities Financial Net sales and Noncurren Noncurre Gross Net operating income IRPJ / service revenues Company Current t Current nt Equity profit expenses (expenses) CSLL 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 Empr. 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 Empr. 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 Empr.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 Direcional São Primiano Empr.Imobiliários Ltda 1, (28) - - (28) Aterpa - Rio de Janeiro (a) 17, , ,778 - (544) (50) (113) - (707) Patrimar Cl. Manoel (a) (30) - (14) (5) (27) - (46) SPE Maura Gontijo (a) 1, (924) (279) 1,245 (300) (258) Rubelita Empreendimentos Imobiliários Ltda (a) 11,974-2, ,064 1,808 (234) (52) - (225) (511) Direcional Silvestre Ltda (a) 9, , ,179 5,633 1,728 (119) (80) (124) 1,405 Alexandria Empreendimentos Imobiliários Ltda (a) 10,834-1, ,122 3,284 3,288 (435) 32 (142) 2,743 Direcional Sodalita Empreendimentos (a) 2, , (1) - - (1) Direcional Oiti Empreendimentos Imobiliários Ltda (a) 1, , (196) (69) Bom Sucesso Incorporação e Invest. Imobiliários S.A. (a) 27,015-2,374-24, (8) - - (8) Santa Margarida Empreendimentos Imobiliários Ltda (a) 9,222-4,768-4, (5) (1) - (6) Direcional Jordão Empreendimentos Imobiliários Ltda (a) 1, , Direcional Brasileia Empreendimentos Imobiliários Ltda (a) 37, , ,823 27,709 8,666 (578) 24 (103) 8,009 Direcional Belo Monte Empr. Imobiliários Ltda (a) Direcional SPL Ponciano Empr. Imobiliários Ltda (a) V. Gontijo Cisão (a) (209) (125) 12-5 (108) Diresomattos Gutierrez Empr. Imobiliários 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 Imobiliários Ltda (a) 10, , ,357 3,693 (1,495) (138) (867) (a) These represent jointly controlled entities. Ernst & Young Terco 32

35 8. Property, plant and equipment Changes in the Company s PP&E for the period between December 2011 and September 2012 are as follows: Company a. Breakdown of balances Depreciation 09/30/2012 Net PP&E at Description rate Cost Depreciation Net 12/31/2011 Machinery and equipment 10% 24,414 (3,487) 20,927 16,074 Furniture and fixtures 10% 794 (260) Buildings - 8,456-8,456 6,354 Vehicles 20% 832 (692) IT equipment 20% 1,710 (859) Other assets (86) Total 36,360 (5,384) 30,976 24,178 b. Changes in 2012 Cost Cost at 12/31/2011 Additions Write-offs / transfers Cost at 09/30/2012 Machinery and equipment 18,029 6,569 (184) 24,414 Furniture and fixtures Buildings 6,354 3,264 (1,162) 8,456 Vehicles IT equipment 1, (8) 1,710 Other assets ,663 10,051 (1,354) 36,360 Depreciation (-) Depreciation at 12/31/2011 Depreciation for the period Depreciation writeoffs (-) Depreciation at 09/30/2012 Machinery and equipment (1,956) (1,552) 21 (3,487) Furniture and fixtures (200) (91) 31 (260) Vehicles (640) (110) 58 (692) IT equipment (625) (343) 109 (859) Other assets (64) (22) - (86) (3,485) (2,118) 219 (5,384) PP&E, net 24,178 7,933 (1,135) 30,976 Ernst & Young Terco 33

36 8. Property, plant and equipment (Continued) c. Changes in 2011 Cost Cost at 12/31/2010 Additions Write-offs / 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 (-) Depreciation at 12/31/2010 Depreciation for the period Depreciation writeoffs (-) Depreciation at 12/31/2011 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) PP&E, net 18,588 5, ,178 Consolidated a. Breakdown of balances Depreciation 09/30/2012 Net PP&E at Description rate Cost Depreciation Net 12/31/2011 Machinery and equipment 10% 31,214 (4,917) 26,297 20,956 Furniture and fixtures 10% 2,804 (686) 2,118 1,951 Buildings - 8,456-8,456 6,354 Vehicles 20% 2,343 (1,449) 894 1,051 IT equipment 20% 3,291 (1,500) 1,791 1,807 Sales stands (a) 26,534 (12,394) 14,140 13,092 Other assets (286) Total 75,450 (21,232) 54,218 45,662 (a) Sales stands depreciate in accordance with each project sales flow and expectation, or decommissioning thereof. Ernst & Young Terco 34

37 8. Property, plant and equipment (Continued) b. Changes in 2012 Cost Cost at 12/31/2011 Additions Write-offs / transfers Cost at 09/30/2012 Machinery and equipment 23,458 8,003 (247) 31,214 Furniture and fixtures 2, (53) 2,804 Buildings 6,354 2,164 (62) 8,456 Vehicles 2, (21) 2,343 IT equipment 2, (40) 3,291 Sales stands 22,489 4,521 (476) 26,534 Other assets 1,029 (215) (6) ,800 15,555 (905) 75,450 Depreciation (-) Depreciation at 12/31/2011 Depreciation for the period Depreciation write-offs (-) Depreciation at 09/30/2012 Machinery and equipment (2,899) (2,022) 4 (4,917) Furniture and fixtures (459) (364) 137 (686) Vehicles (1,158) (292) 1 (1,449) IT equipment (955) (550) 5 (1,500) Sales stands (9,396) (10,332) 7,334 (12,394) Other assets (271) (16) 1 (286) (15,138) (13,576) 7,482 (21,232) PP&E, net 45,662 1,979 6,577 54,218 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 stands 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 Depreciation 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 stands (5,560) (4,052) 216 (9,396) Other assets (353) (441) 523 (271) (9,058) (7,941) 1,861 (15,138) PP&E, net 34,630 11,700 (668) 45,662 The Company and its subsidiaries are parties to five finance lease agreements and 19 FINAME agreements for machinery, equipment and vehicles. Book value of PP&E items recorded under finance lease agreements as of was R$ 21,926 (R$ 15,576 as of December 31, 2011). For the period, there were additions to PP&E of items under finance lease commitments, which are guaranteed by the leased items, in the amount of R$5,033. Ernst & Young Terco 35

38 9. Loans and financing Company Consolidated Financing for construction 09/30/ /31/ /30/ /31/2011 Jonasa Empreendimentos Imobiliários Ltda ,520 70,658 Direcional Taguatinga Engenharia Ltda ,437 46,019 Direcional Âmbar Empreendimentos Imobiliários Ltda ,961 44,066 Direcional Safira Empreendimentos Imobiliários Ltda ,659 26,604 Direcional Diamante Empreendimentos Imobiliários Ltda ,329 26,193 Direcional TSC Rio Madeira Empreendimentos Imobiliários Ltda - - 8,859 26,124 Ônix Empreendimentos Imobiliários Ltda ,648 18,254 Direcional Rubi Empreendimentos Imobiliários Ltda ,218 17,555 Flourita Empreendimentos Imobiliários Ltda ,910 14,818 Direcional TSC Jatuarana Empreendimentos Imobiliários Ltda ,354 14,248 Direcional Opala Empreendimentos Imobiliários Ltda - - 8,482 12,110 Direcional TSC Jamari Emp. Imobiliários Ltda - - 5,148 11,029 Alexandrita Empreendimentos Imobiliários Ltda ,637 9,840 Seabra Emp. Imobiliários Ltda - Total Ville Porto Velho ,486 9,645 Bujari Empreendimentos Imobiliario Ltda ,803 9,302 Direcional Brasileia Emp. Imobiliários Ltda - - 8,824 7,996 Direcional Engenharia S.A. - SCP Club House - - 3,006 7,898 SCP - Direcional/DAN/Gontijo Fernandes - Jacundá ,550 Direcional Esmeralda Empreendimentos Imobiliários Ltda ,892 7,331 SCP - Direcional/ACR - Paradiso - - 3,796 7,078 Direcional Silvestre Ltda ,777 3,779 Direcional Construtora Valparaíso Ltda ,905 Direcional Patrimar Maragogi Emp. Imobiliários Ltda - - 6,076 2,778 Una Empreendimentos Imobiliario Ltda - - 5,139 2,432 Aterpa - Rio de Janeiro Rubelita Empreendimentos Imobiliários Ltda Ernane Agrícola Empreendimentos Imobiliários Ltda Direcional Abaré Empreendimentos Imobiliários Ltda - - 7,880 - Direcional Capixaba Empreendimentos imobiliários Ltda ,573 - Direcional JHSF Zircone Empreendimentos imobiliários Ltda ,534 - SCP Sarandi - Andrade Valladares Residencial Ltda - - 2,204 - Direcional Porto Acre Empreendimentos Imobiliários Ltda - - 7,404 - Direcional Tarauacá Empreendimentos Imobiliários Ltda - - 2,907 - Direcional Trincheiras Empreendimentos Imobiliários Ltda - - 3,862 - Direcional Ametista Empreendimentos Imobiliários Ltda - - 9, , ,563 Ernst & Young Terco 36

39 9. Loans and financing (Continued) Company Consolidated 09/30/ /31/ /30/ /31/2011 Securitization Direcional Engenharia S.A. - Plaza das Águas SCP - Direcional/ACR - Lago - - 6,077 31, ,077 31,847 FINAME and finance lease for equipment 16,157 13,076 16,157 13,076 16,157 13,076 16,157 13,076 Working capital 20,042 20,666 20,042 20,666 20,042 20,666 20,042 20,666 Assignment of receivables Jonasa Empreendimentos Imobiliários Ltda ,903 - Direcional TSC Rio Madeira Empr Imobiliários Ltda , ,797 - Mortgage-backed securities (MBS) 101, , , ,192 - Grand total 137,392 33, , ,152 Current portion 70,674 4, , ,903 Noncurrent portion 66,718 28, , ,249 Company s loans and financing are divided into six main categories, namely: Financing for construction: This type of loan is designed to fund projects during their construction. Interest rates applicable to these loans, according to the operation, range from 8.3% to 12% p.a., plus restatement by the Referential Rate (TR). These transactions are backed by mortgages of real estate of the corresponding projects; FINAME and Lease: These types of loans are designed to fund investments in machinery and equipment. Interest rates applicable to these loans are: (i) for FINAME, according to the operation, fixed interest ranging from 2.5% to 8.7% p.a. or floating interest margins on the TJLP or TJ462, ranging from 2.30% to 6.0% p.a. and (ii) for lease agreements, according to the operation, fixed interest ranging from 13.79% to 14.93% p.a. or floating interest margins on CDI of 2.55% p.a. These operations are backed by the machinery and equipment acquired through these loans; Working capital: This type of loan is designed to fund the Company s working capital needs. Interest rate applicable to this loan it is CDI, plus 1.75% p.a. Ernst & Young Terco 37

40 9. Loans and financing (Continued) Securitization of receivables: In June 2010, the Company took out from CIBRASEC Companhia Brasileira Securitização mortgage-backed securities for Lake View Resort project. In this operation, the Company securitized 176 contracts for R$54,314. Receivables assigned were adjusted by the INCC until the certificate of occupancy was granted, the registration of which was in June 2011, and by the IGP-M (published by Getulio Vargas Foundation) + 12% p.a. onwards until maturity. The outstanding debt balance of the operation will be adjusted by the IGP-M + 8% p.a. until maturity. The Company is jointly liable to and will be the main payer of all obligations assumed in this transaction, and the joint liability shall remain in force until CIBRASEC effectively receives the full amount securitized. Accordingly, the Company did not record the write-off of accounts receivable regarding the securitized project. Assignment of receivables: Financing agreement with fixed annual interest rate of 12.21% backed by assignment of real estate receivables of companies SCP - Direcional/DAN/Gontijo Fernandes - Jacundá, Jonasa Empreendimentos Imobiliários Ltda and Direcional TSC Rio Madeira Empreendimentos Imobiliários Ltda. Assigned receivables correspond to projects completed or those in final phase of delivery, and financing shall be repaid as customers are transferred to banks. Mortgage-backed securities (MBS): Free-trade registered securities receivables, issued solely by securitization entities, are backed by mortgages and are agreements of payment in cash. 337 (three hundred thirty-seven) CRI were issued with face value of R$300 each, on September 25, Total issue amounted to R$101,100, and total CRI effective term is from September 25, 2012 to October 7, Mortgage receivables are backed by bank credit bill No issued by Direcional Engenharia S.A. on August 28, 2012 ("CCB"), which is fully represented by a mortgage-backed security ("MBS") issued by Itaú BBA. Mortgage receivables were assigned to the Issuer (Brazilian Securities Companhia de Securitização) upon transfer of CCI from Itaú BBA to the Issuer. MBS remuneration, which is levied on unit face value of CRI from issue date thereof, comprises interest borne corresponding to accumulated ID index variation, increase exponentially by surcharge equivalent to 0.80% p.a., based on 252 working days, calculated on an exponential and cumulative pro rata temporis basis considering the number of days elapsed. Ernst & Young Terco 38

41 9. Loans and financing (Continued) The noncurrent portion of the Company s loans matures as follows: Period 09/30/ /31/2011 October/13 to September/14 60,656 23,728 October/14 to September/15 4,469 3,087 October/15 to September/16 1,593 1,859 After October/ ,718 28,967 The noncurrent portion of consolidated loans matures as follows: Period 09/30/ /31/2011 October/13 to September/14 298, ,098 October/14 to September/15 82,623 39,374 October/15 to September/16 14,556 5,580 After October/16 3,426 20, , , Labor liabilities Company Consolidated Description 09/30/ /31/ /30/ /31/2011 Salaries payable 1, ,715 7,891 Charges payable 1,130 1,428 7,564 7,762 Accrued vacation pay and 13 th monthly salary pay 5,306 2,426 22,033 10,317 Profit sharing 2,550 4,930 9,108 8,947 Other , ,414 9,679 49,195 34, Tax liabilities Company Consolidated Description 09/30/ /31/ /30/ /31/2011 IRPJ ,260 21,580 CSLL ,904 11,289 PIS ,046 6,715 COFINS ,048 29,352 Other ,200 4, ,458 73,179 Current portion ,296 58,547 Noncurrent portion ,162 14,632 Ernst & Young Terco 39

42 12. Real estate commitments payable These state accounts payable for acquisition of land for real estate venture development, as follows: Company 09/30/ /31/2011 Zircone Empreendimentos Imobiliários Ltda 39,948 37,945 Direcional Safira Empreendimentos Imobiliários Ltda 20,739 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 13,190 17,490 Direcional Ametista Empreendimentos Imobiliários Ltda 11,402 - Seabra Empreendimentos Imobiliários Ltda 8,905 9,221 Direcional Riachos Empreendimentos Imobiliários Ltda 8,000 8,000 Direcional Abaré Empreendimentos Imobiliários Ltda 7,136 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 200 1,100 Other 6,470 9, , ,514 Current portion 30,740 32,848 Noncurrent portion 131, ,666 Ernst & Young Terco 40

43 13. Advance from customers This corresponds to (i) a commitment to deliver finished, completed real estate units, purchased through barter transactions whereby land is exchanged for units for construction; (ii) advance payments received from customers for real estate units sold: Advances from customers physical barter transaction of land (i) 09/30/ /31/2011 Direcional Canário Engenharia Ltda. 118,989 - Direcional Pilar Empreendimentos Imobiliários Ltda 25,771 - Direcional Taguatinga Engenharia Ltda. 17,285 16,290 Direcional Agua das Flores Empreendimentos Imobiliários Ltda 16,000 16,000 Direcional Sena Madureira Empreendimentos Imobiliários Ltda 15,495 16,190 Direcional Construtora Valparaíso Ltda. 15,476 15,476 Direcional Alegre Empreendimentos Imobiliários Ltda 14,863 22,000 Direcional Xapuri Empreendimentos Imobiliários Ltda 13,810 12,797 Direcional Coruripe Empreendimentos Imobiliários Ltda 12,000 12,000 Direcional Azurita Empreendimentos Imobiliários Ltda 11,702 14,884 Direcional Santa Rosa Empreendimentos Imobiliários Ltda 10,400 7,500 Direcional Arapiraca Empreendimentos Imobiliários Ltda 10,393 12,005 Direcional Tarauacá Empreendimentos Imobiliários Ltda 10,373 11,474 Direcional Trincheiras Empreendimentos Imobiliários Ltda 10,173 13,096 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 Ônix Empreendimentos Imobiliários Ltda 8,253 10,214 Direcional Palmeira Empreendimentos Imobiliários Ltda 7,082 - Direcional Carneiros Empreendimentos Imobiliários Ltda 6,923 13,846 Andrade Valladares Residencial Ltda - SCP Floramar 5,945 5,166 Direcional Cajueiro Empreendimentos Imobiliários Ltda 5,469 6,514 Direcional Porto Acre Empreendimentos Imobiliários Ltda 4,225 5,737 Coral Empreendimentos Imobiliários Ltda 3,600 3,600 Direcional Assis Brasil Empreendimentos Imobiliários Ltda 3,280 3,280 Direcional Âmbar Empreendimentos Imobiliários Ltda 3,012 3,339 Direcional Rubi Empreendimentos Imobiliários Ltda 2,036 4,430 Direcional Campinas Engenharia Ltda. 1,621 1,621 Direcional Esmeralda Empreendimentos Imobiliários Ltda 1,414 4,128 Direcional Patrimar Maragogi Empreendimentos Imobiliários Ltda 457 1,444 Direcional Brasileia Empreendimentos Imobiliários Ltda Direcional Ametista Empreendimentos Imobiliários Ltda - 10,967 Other 2,740 1, , ,496 Advance from customers by receipt (ii) Direcional Silvestre Ltda Direcional Brasileia Empreendimentos Imobiliários Ltda Direcional Rubi Empreendimentos Imobiliários Ltda Other Total 387, ,108 Current portion 212,272 74,715 Noncurrent portion 175, ,393 Ernst & Young Terco 41

44 14. Other accounts payable Company Consolidated Description 09/30/ /31/ /30/ /31/2011 Payables to customers 10,609 8,439 10,700 8,821 Payables to partners (a) ,300 44,300 Payables to legal entities ,151 14,111 Accounts payable for acquisitions of equity interest ,089 24,660 30,689 Other 855 1,068 12,851 10,438 Total 36,157 40,146 98, ,359 Current 24,417 23,124 86,922 91,337 Noncurrent 11,740 17,022 11,740 17,022 (a) On April 20, 2011, the Company entered into a commercial arrangement with an investing partner for project developments in 4 land units located in the Federal District (DF) in exchange for R$ 44,300 received cash, on which no remuneration is levied. 15. Provision for tax, civil and labor contingencies Provision for tax, civil and labor contingencies During the normal course of their businesses, the Company and its subsidiaries are exposed to certain contingencies and risks, which include tax, labor and civil claims. Based on the analysis of the risks identified and on the opinion of its legal advisers, the Company set up a provision to cover contingencies, if any, whose likelihood of an unfavorable outcome is rated as probable. At, the provision amounted to: Company Description Tax Labor Civil Total Balance at December 31, Provisions Reversals (78) (6) (110) (194) Balance at ,124 Consolidated Description Tax Labor Civil Total Balance at December 31, ,040 1,599 4,549 Provisions - 3,071 2,534 5,605 Reversals (910) (523) (665) (2,098) Balance at - 4,588 3,468 8,056 The Company is party to other tax, civil and labor claims arising in the normal course of its business, whose likelihood of an unfavorable outcome, in the opinion of management and its legal advisers, is rated as possible. These claims amount to approximately R$ 7,030 (labor), R$ 851 (tax) and R$ 10,306 (civil) as of. As such, no provision was set up to cover these claims in the event of an unfavorable outcome. Ernst & Young Terco 42

45 15. Provision for tax, civil and labor contingencies (Continued) Provision for warranties The Company set up provisions for expenses with warranties over the construction period, only for units already sold. Therefore, costs incurred with maintenance after the keys to the real estate units are handed will be deducted from this provision. Provisions for warranties of constructions are based on historical cash outflows referring to expenses with maintenance, which represent 0.8% of the cost budgeted for each venture. At, provision for warranties kept by the Company amounted to R$ 11,195 (R$ 12,555 as of December 31, 2011). These provisions are fully reversed upon expiry of the contractual or legal clauses generating such obligation and commitment between the construction company and the standby purchaser. 16. Equity Capital On January 19, 2012, the Board of Directors approved capital increase by R$ 472, through issue of 394,017 shares at R$ 1.20 each, as set under Program I Grant of Stock Options. After these shares were issued, Company capital increased to R$ 497,158, comprising 155,298,749 common shares, of which 153,972,578 are outstanding and 1,326,171 are treasury stock. Authorized capital as of the date the financial statements were disclosed was R$1,200,000. Ernst & Young Terco 43

46 16. Equity (Continued) Capital reserves Capital reserve through issue of shares As mentioned 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$ 228,800 of which relating to the primary offering. The Board of Directors determined that R$ 57,200 of this amount be transferred to the Capital Reserve account through issue of shares Capital reserve through the granting of stock options As mentioned in Note 21, the Company recognizes the services received in exchange for the stock options granted in this account. Upon exercise of these stock options, the reserve is transferred to retained profit Treasury stock In meeting held on August 11, 2011, the Board of Directors approved a share buyback program for the Company s shares aiming at maintenance in Treasury and subsequently cancelation or disposal, without capital reduction, in order to maximize value for shareholders. The share buyback program lasted 60 days beginning August 12, 2011 and ending on October 11, During this program, 1,660,200 shares were repurchased for R$ 15,846, at an average price of R$9.54 per share. During 2012, 334,029 treasury stock were granted for Program I stock option exercise. Accordingly, total treasury stock decreased from 1,660,200 to 1,326,171. Ernst & Young Terco 44

47 16. Equity (Continued) Income reserve Legal reserve This is set up at the rate of 5% on net income for the year, limited to 20% of capital or 30% with the capital reserve, under the Brazilian Corporation Law Retained profit reserve Mainly set up to maintain the Company s investment capacity and the performance of work in progress Earnings per share The Company calculates earnings per share using the weighted average number of total common shares outstanding in P&L for the period, in accordance with technical pronouncement CPC 41 (IAS 33). Detailed information on the calculation of earnings per share for the periods ended and December 31, 2011 is as follows: Basic earnings per share 09/30/ /30/2011 Numerator: Net income for the year 152, ,657 Denominator: Weighted average number of shares 153,694, ,429,851 Basic earnings per share R$ Diluted earnings per share 09/30/ /30/2011 Numerator: Net income for the year 152, ,657 Denominator: Weighted average number of shares 153,694, ,429,851 Adjustment for stock option (a) 2,105,319 5,656,818 Weighted average number of shares (diluted) 155,799, ,086,669 Basic earnings per share R$ (a) Represented by in-the-money outstanding options, according to the stock option plan set out in Note 21. Ernst & Young Terco 45

48 17. Real estate development operations Net operating revenue Consolidated Description 09/30/ /30/2011 Gross sales revenue 735, ,106 Gross revenue from services 321, ,874 Total gross revenue 1,057, ,980 Sales taxes (33,385) (19,631) Operating revenue, net 1,023, ,349 Taxes levied on sales and services are the Social Contribution Tax on Gross Revenue for Social Integration Program (PIS) and Social Contribution Tax on Gross Revenue for Social Security Financing (COFINS), 1,65% and 7.6%, respectively, for revenues earned on a non-cumulative basis, 0.65% and 3%, respectively, for revenues earned on a cumulative basis, 0.56% and 2.57%, respectively, for revenues earned on a special tax regime applied to construction and real estate development companies, and 0.09% and 0.44%, respectively, for revenues related to the Minha Casa Minha Vida program (PMCMV) for units of up to R$ 85. Ernst & Young Terco 46

49 17. Real estate development operations (Continued) Allocation of revenues/expenses from real estate sales (consolidated) Revenues from units sold 09/30/ /30/2011 Revenues ( - ) Cost of from units units sold sold ( - ) Cost of units sold Company SCP Bairro Carioca 83,612 (60,315) - - Direcional Âmbar Empreendimentos Imobiliários Ltda 20,181 (14,714) 21,562 (14,765) Jonasa Empreendimentos Imobiliários Ltda. 12,888 (6,532) - - Direcional Safira Empreendimentos Imobiliários Ltda 9,860 (9,741) - - Capela Empreendimentos Imobiliários Ltda 9,502 (8,310) - - SCP - Meu Orgulho 9,144 (10,538) - - SCP - Direcional/DAN/Gontijo Fernandes - Jacundá 7,559 (2,919) 12,087 (12,587) Ônix Empreendimentos Imobiliários Ltda 6,878 (3,339) - - Direcional TSC Jatuarana Empreendimentos Imobiliários Ltda 6,846 (10,255) - - Direcional Diamante Empreendimentos Imobiliários Ltda 5,583 (2,146) - - SCP - Direcional/ASCC/Diedro-Eliza Miranda 4,477 (2,025) 5,971 (1,893) Bujari Empreendimentos Imobiliários Ltda 4,338 (7,315) - - Direcional TSC Jamari Empreendimentos Imobiliários Ltda 4,180 (3,381) - - Direcional Corretora de Imóveis S.A. 4,059 (293) 3,456 (145) SCP - Direcional/ACR - Lago 3,623 (2,243) 4,635 (4,087) Direcional Engenharia S.A. 2, ,828 (32) SCP Boa Casa 2,887 (1,711) - - Direcional TSC Rio Madeira Empreendimentos Imobiliários Ltda 2,335 (3,551) 16,131 (17,672) SCP 15 - Aterpa - Rio de Janeiro 1,887 (477) - (182) SCP - Cidadão XI 1,841 (5,031) - - Direcional Taguatinga Engenharia Ltda. 1,539 (3,186) - - Direcional Opala Empreendimentos Imobiliários Ltda 1,188 (775) 251 (1,360) Direcional Engenharia S.A. - SCP Club House 788 (740) 8,967 (6,671) SPE - Rubelita Empreendimentos Imobiliários Ltda 784 (391) 670 (689) SCP - Direcional/SPL - Campinas 673 (180) 116 (288) SCP - Direcional/Eólica - Retiro dos Artistas 621 (260) 1,032 (1,094) SPE 34 - Alexandria Empreendimentos Imobiliários Ltda 287 (46) 1, Ernane Agricola Empreendimentos Imobiliários Ltda 222 (14) 1,686 (1,976) SCP - Direcional/ACR - Paradiso 193 (370) 3,026 (2,213) Direcional Construtora Valparaíso Ltda. (2,289) 1,374 4,315 (6,559) Other 292 (1,295) 747 (5,356) Revenues from real estate completed 208,909 (160,611) 91,684 (77,383) Direcional Taguatinga Engenharia Ltda. 103,004 (66,785) 77,564 (45,759) SCP - Meu Orgulho 84,153 (53,090) 96,125 (71,223) Direcional Rubi Empreendimentos Imobiliários Ltda 57,152 (36,052) 26,892 (17,723) Ônix Empreendimentos Imobiliários Ltda 50,783 (38,058) 38,155 (29,495) Zircone Empreendimentos Imobiliários Ltda 48,553 (32,097) 27,774 (15,878) SCP Alterosa - Ribeirão das Neves 40,322 (37,754) 14,735 (10,714) Jonasa Empreendimentos Imobiliários Ltda. 35,662 (32,368) 64,630 (49,267) SCP Macapá 34,220 (21,368) - - Direcional Capixaba Empreendimentos Imobiliários Ltda 33,385 (15,918) 12,233 (5,111) SPE 31 - Direcional Silvestre Ltda 31,900 (15,341) 4,189 (2,959) Flourita Empreendimentos Imobiliários Ltda 28,792 (20,256) 33,368 (17,246) Seabra Empreendimentos Imobiliários Ltda 28,480 (23,811) 27,667 (18,939) Direcional Trincheiras Empreendimentos Imobiliários Ltda 27,556 (19,007) - - SCP Direcional/Comim Meu Orgulho - Infra 24,422 (27,957) 22,031 (15,628) SPE 80 - Direcional Brasileia Empreendimentos Imobiliários Ltda 22,055 (14,847) 7,420 (4,699) Direcional Esmeralda Empreendimentos Imobiliários Ltda 21,054 (13,417) 18,560 (9,057) Direcional Diamante Empreendimentos Imobiliários Ltda 20,852 (13,299) 31,516 (24,065) SCP - Pro Moradia II 20,006 (13,925) 21,408 (13,301) Una Empreendimentos Imobiliários Ltda 15,464 (8,565) 9,458 (3,908) Direcional Azurita Empreendimentos Imobiliários Ltda 15,450 (8,230) - - Direcional Abaré Empreendimentos Imobiliários Ltda 15,445 (9,279) 4,686 (2,704) Direcional Palmeira Empreendimentos Imobiliários Ltda 14,714 (10,530) - - Direcional Ametista Empreendimentos Imobiliários Ltda 14,518 (8,359) 6,191 (4,380) Ernst & Young Terco 47

50 17. Real estate development operations (Continued) Allocation of revenues/expenses from real estate sales (consolidated) (Continued) Revenues from units sold 09/30/ /30/2011 Revenues ( - ) Cost of from units units sold sold ( - ) Cost of units sold Company SCP Aterrado do Leme 13,265 (8,888) - - Andrade Valladares Residencial Ltda - SCP Floramar 8,263 (4,736) - - Direcional Patrimar Maragogi Empreendimentos Imobiliários Ltda 6,820 (4,150) 3,211 (2,152) Direcional Porto Acre Empreendimentos Imobiliários Ltda 6,063 (4,876) - - Direcional Tarauaca Empreendimentos Imobiliários Ltda 5,355 (4,900) 31,151 (15,961) SCP Porto Velho 5,143 (3,926) - - Alexandrita Empreendimentos Imobiliários Ltda 4,092 (6,366) 7,997 (8,364) Direcional Cajueiro Empreendimentos Imobiliários Ltda 3,778 (2,487) - - Direcional SPL Ponciano Empreendimentos Imobiliários Ltda 2,605 (1,512) - - SCP - Direcional/ASCC/Diedro-Eliza Miranda 2,241 (2,401) 994 (1,048) Direcional Opala Empreendimentos Imobiliários Ltda 2,235 (4,144) 13,874 (8,908) Direcional Safira Empreendimentos Imobiliários Ltda ,166 (18,700) Direcional Âmbar Empreendimentos Imobiliários Ltda - - 5,828 (9,535) Direcional TSC Jamari Empreendimentos Imobiliários Ltda - - 8,227 (6,519) Direcional TSC Jatuarana Empreendimentos Imobiliários Ltda ,693 (17,932) Bujari Empreendimentos Imobiliários Ltda ,460 (8,878) SCP - Cidadão XI ,723 (11,848) SCP Boa Casa - - 1,101 (1,938) SCP Bairro Carioca - - 7,386 (5,255) Other 362 (177) 1,883 (1,864) Revenues from real estate units under construction 848,164 (588,876) 704,296 (480,958) Grand total 1,057,073 (749,487) 795,980 (558,341) Company s gross revenue from real estate units sold is net of present value adjustment (PVA), pursuant to prevailing standards described in CPC 12, and, according to guidance OCPC 01 items 33 and 34, the Company adopts an average discount rate for trade accounts receivable of 7% p.a Expenses by nature (consolidated) The Company decided to present the consolidated income statement by function and set out below its detailing by nature: Consolidated Description 09/30/ /30/2011 Raw material, and consumption and in-use material (749,348) (510,928) Personnel expenses (41,515) (28,097) Depreciation and amortization (6,622) (3,562) Third-party services (10,666) (56,003) Electric energy, water and telephone (991) (14,001) General selling expenses (24,250) (16,469) Sales commissions (1,923) (1,992) Other (25,997) (22,579) (861,312) (653,631) Classified as Cost of properties sold (499,676) (424,944) Cost of services rendered (249,811) (133,397) Selling expenses (30,495) (18,461) General and administrative expenses (81,330) (76,829) (861,312) (653,631) Ernst & Young Terco 48

51 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: 09/30/ /30/2011 Construction commitments to be incurred for contracted Contracted sales sales to be incurred Construction commitments to be incurred for contracted sales Contracted sales Project to be incurred SCP Porto Velho - Phase 1 214,345 (162,325) - - SCP - Meu Orgulho - Phase 2 172,122 (107,194) 266,582 (179,491) Orgulho do Ceará - Phase 1 136,240 (102,180) - - Orgulho Tropical (Sobral) - Phase 1 135,500 (105,690) - - SCP Macapá - Phase 2 134,958 (105,267) - - SCP Macapá - Phase 1 93,460 (57,894) - - Zircone Empreendimentos Imobiliarios Ltda - Phase 1 78,408 (47,012) 94,912 (54,393) SCP Aterrado do Leme - Phase 1 62,785 (42,085) - - SCP - Pro Moradia II - Phase 1 51,218 (33,594) 77,931 (49,692) Direcional Azurita Empreendimentos Imobiliarios Ltda - Phase 2 43,719 (24,677) - - Zircone Empreendimentos Imobiliarios Ltda - Phase 2 38,733 (23,841) 48,013 (27,947) Direcional Trincheiras Empreendimentos Imobiliários Ltda - Phase 2 36,652 (21,861) - - Ônix Empreendimentos Imobiliários Ltda - Phase 4 28,383 (18,243) - - Direcional Abaré Empreendimentos Imobiliários Ltda - Phase 1 28,143 (15,485) 24,603 (13,746) Seabra Empreendimentos Imobiliarios Ltda - Phase 2 27,841 (18,058) 29,857 (17,079) Direcional Taguatinga Engenharia Ltda. - Phase 8 27,224 (17,565) - - Una Empreendimentos Imobiliarios Ltda - Phase 1 26,897 (12,293) 44,563 (17,970) Direcional Trincheiras Empreendimentos Imobiliários Ltda - Phase 1 26,811 (16,884) - - Direcional Rubi Empreendimentos Imobiliarios Ltda - Phase 3 24,446 (12,001) 21,503 (13,677) Ônix Empreendimentos Imobiliários Ltda - Phase 14 24,201 (15,971) - - Direcional Capixaba Empreendimentos Imobiliarios Ltda - Phase 1 23,894 (10,280) 62,320 (24,992) Direcional Tarauaca Empreendimentos Imobiliários Ltda - Phase 1 23,477 (13,775) 11,209 (11,220) Direcional Azurita Empreendimentos Imobiliarios Ltda - Phase 3 21,286 (11,438) - - Direcional Cajueiro Empreendimentos Imobiliários Ltda - Phase 1 20,297 (12,901) - - Andrade Valladares Residencial Ltda - SCP Floramar - Phase 1 19,836 (11,073) - - Direcional Taguatinga Engenharia Ltda. - Phase 6 19,530 (14,300) 29,253 (23,613) Direcional Palmeira Empreendimentos Imobiliários Ltda - Phase 1 18,445 (12,825) - - Direcional Diamante Empreendimentos Imobiliarios Ltda - Phase 3 18,199 (11,169) 4,911 (2,863) Direcional Taguatinga Engenharia Ltda. - Phase 7 16,457 (8,892) 33,671 (17,350) SCP Direcional/Comim Meu Orgulho - Infra - Phase 2 14,947 (16,686) 5,327 (3,352) SCP Bairro Carioca - Phase 1 13,912 (9,922) 106,764 (75,353) Direcional Porto Acre Empreendimentos Imobiliarios Ltda - Phase 1 13,616 (9,246) - - Direcional Ametista Empreendimentos Imobiliarios Ltda - Phase 2 10,168 (5,535) - - Direcional Rubi Empreendimentos Imobiliarios Ltda - Phase 1 9,989 (6,463) 32,472 (20,762) Ernst & Young Terco 49

52 17. Real estate development operations (Continued) Contracted real estate sales (consolidated) (Continued) 09/30/ /30/2011 Construction commitments to be incurred for contracted Contracted sales sales to be incurred Construction commitments to be incurred for contracted sales Contracted sales Project to be incurred Flourita Empreendimentos Imobiliários Ltda - Phase 1 9,831 (4,977) 31,735 (15,319) Direcional SPL Ponciano Empreendimentos Imobiliarios Ltda - Phase 1 9,634 (5,593) - - Direcional Esmeralda Empreendimentos Imobiliarios Ltda - Phase 1 8,706 (4,809) 54,386 (29,952) Andrade Valladares Residencial Ltda - SCP Floramar - Phase 1 6,917 (3,921) - - Direcional Ametista Empreendimentos Imobiliarios Ltda - Phase 1 6,661 (3,750) 16,659 (9,332) Direcional Brasileia Empreendimentos Imobiliarios Ltda - Phase 1 5,472 (3,650) Direcional Silvestre Ltda - Phase 1 5,390 (2,688) - - Direcional Jordão Empreendimentos Imobiliarios Ltda - Phase 1 4,799 (2,388) - - Direcional Rubi Empreendimentos Imobiliarios Ltda - Phase 2 4,703 (5,046) 5,151 (3,734) Direcional Azurita Empreendimentos Imobiliarios Ltda - Phase 1 4,573 (1,596) - - Direcional Patrimar Maragogi Empreendimentos Imobiliarios - Phase 1 4,322 (2,494) 19,153 (10,260) Direcional Taguatinga Engenharia Ltda. - Phase 5 2,493 (1,430) 23,916 (14,885) SCP - Direcional/ASCC/Diedro-Eliza Miranda - Phase 5 2,314 (2,202) 5,717 (4,882) Direcional Safira Empreendimentos Imobiliarios Ltda - Phase (609) 9,105 (5,342) Direcional Ametista Empreendimentos Imobiliarios Ltda - Phase (370) - - Direcional Taguatinga Engenharia Ltda. - Phase (107) 17,616 (10,572) SCP Alterosa - Rib. das Neves - Phase ,945 (41,076) Jonasa Empreendimentos - Gran Vista - Phase ,737 (22,506) SCP - Meu Orgulho - Phase ,315 (22,037) Ônix Empreendimentos Imobiliários Ltda - Phase ,748 (9,718) Ônix Empreendimentos Imobiliários Ltda - Phase ,235 (10,807) Direcional Taguatinga Engenharia Ltda. - Phase ,392 (6,318) Direcional Diamante Empreendimentos Imobiliarios Ltda - Phase ,068 (7,240) Seabra Empreendimentos Imobiliarios Ltda - Phase ,787 (8,014) Direcional Ambar Empreendimentos - Brisas do Madeira - Phase ,494 (5,805) Arinos Empreendimentos - Chácaras das Oliveiras - Phase ,795 (4,950) Alexandrita Empreendimentos - Varandas Faz. da Serra - Phase ,598 (5,135) Bujari Empreendimentos - Parque Verde - Phase ,003 (3,902) Direcional TSC Jatuarana Empreendimentos - Vita Bella - Phase ,305 (3,201) SCP - Cidadão XI - Phase ,938 (3,025) SCP - Boa Casa - Phase ,849 (6,725) Direcional Opala Empreendimentos - Gran D'Ouro - Phase ,279 (1,908) Direcional Diamante Empreendimentos Imobiliarios Ltda - Phase ,544 (1,814) Direcional Opala Empreendimentos - Gran Ventura - Phase 2 Direcional Safira Empreendimentos Imobiliarios Ltda - Phase 1 2,245 (1,288) Direcional TSC Rio Madeira Empreendimentos - Garden Club - Phase 1 1,829 (1,098) Direcional TSC Jamari Empreendimentos - Riviera - Phase 1 1,125 (903) Direcional Taguatinga Engenharia Ltda. - Phase (179) 1,733,577 (1,160,255) 1,324,896 (825,427) Ernst & Young Terco 50

53 18. Financial income (expenses) Financial income 09/30/ /30/ /30/ /30/2011 Short-term investment income 7,130 18,502 14,400 23,179 Monetary restatement and contractual interest rates 8,882 9,187 11,900 11,756 Other revenues Total 16,012 27,689 27,082 34,935 Financial expenses Interest expenses (3,042) (3,137) (5,217) (3,557) Banking expenses (156) (226) (2,068) (1,269) Monetary variation - liabilities - (393) (162) (9,483) Other expenses - - (425) - Total (3,198) (3,756) (7,872) (14,309) Financial income (expenses) 12,814 23,933 19,210 20, Income taxes Breakdown of income and social contribution taxes for the periods ended September 30, 2012 and September 30, 2011 states the timing difference between the cash basis of accounting adopted by SCP and SPE, taxed based on profit computes as a percentage of the company s gross revenue and the Special Taxation Regime (RET), and the other provision for tax on receivables. Such difference is summarized below: Company Consolidated 09/30/ /30/ /30/ /30/2011 Income before income and social contribution taxes 152, , , ,511 Income and social contribution taxes at the rate of 34% (51,780) (44,423) (61,406) (51,514) Adjustment for effective rate calculation Additions and exclusions allowed (except equity pickup) (7,998) (8,749) - - Exclusion of equity pickup 70,003 55, Non-taxable / non-deductible bases (10,225) (2,732) (10,225) (2,732) Net effect of subsidiaries taxed under the profit computed as a percentage of the Company's gross revenue regime and the ,076 36,001 Special Taxation Regime Expenses with income and social contribution taxes - - (23,555) (18,245) Effective rate 13.04% 12.04% At, income and social contribution tax losses recorded by the Company amounted to R$ 75,059 (R$ 26,577 as of December 31, 2011). No deferred tax assets were computed on this amount, as realization thereof through future taxable profit, given the Company's characteristic of a holding company, is not expected. Given the taxation regime adopted by SCP and SPE (profit computed as a percentage of the company s gross revenue or RET), they recorded no temporary differences. Ernst & Young Terco 51

54 20. Financial instruments The Company and its subsidiaries are parties to transactions involving financial instruments in order to fund their activities or invest funds available. These risks are managed by setting conservative strategies aimed at liquidity, profitability and safety. The control policy consists of actively monitoring agreed rates, as compared to the rates prevailing in the market. Financial instruments usually taken out by Direcional and 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 for nine-month period ended and the year ended December 31, The book value of financial instruments at balance sheet date, substantially represented by short-term investments and financing agreements, approximates their estimated market value, as these transactions are subject to floating rates. Interest rate risk The Company is exposed to floating interest rates, substantially the CDI rate, which remunerates the short-term investments it has taken out in reais, interest on loans taken out from the Housing Financial System pegged to TR, interest on loans for acquisition of machinery and equipment taken out from BNDES (FINAME) pegged to TJLP and TJ462, interest on loans for working capital purposes pegged to CDI, securitization interest of receivables pegged to IGP-M, fixed interest related to the assignment of receivables, and interest income of CRI, corresponding to the accumulated DI rate variation, increased exponentially of surcharge equivalent to 0.80% (zero point eighty percent) p.a. Liquidity risk The Company manages its liquidity risk based on cash flows, seeking to maintain funds available at a level sufficient to meet its short-term needs. Currency risk At, the Company had no payables or receivables stated in foreign currency. In addition, no significant costs of the Company are stated in foreign currency. Ernst & Young Terco 52

55 20. Financial instruments (Continued) Credit risk Financial instruments that potentially expose the Company to credit risk concentration primarily comprise bank balances, short-term investments and trade accounts receivable. The Company mitigates its exposure to credit risk related to banks, short-term investments, by having its investments in first-tier financial institutions and with highlyliquid short-term remuneration securities. As regards trade accounts receivable, the Company mitigates its exposure to credit risk through sales to a wide customer base and ongoing credit analyses. At, there was no significant customer-related credit risk concentration. Trade accounts receivable are backed by the very real estate units, the possession of which is transferred only after settlement. Fair value of financial instruments Book value of financial instruments, substantially represented by short-term investments and financing, is stated in the balance sheets at amounts close to market value, considering similar operations. Fair value used to record short-term investments was computed based on prices quoted in active markets for similar operations, and falls into level 1 of the fair value hierarchy. Ernst & Young Terco 53

56 20. Financial instruments (Continued) Sensitivity analysis The Company and its subsidiaries are required to present a sensitivity analysis for each type of market risk deriving from financial instruments and considered material by management to which the Company is exposed at each year-end date. As the Company has no derivative financial instruments, exposure to risks is only related to variation of floating indexes affecting both financial income arising from short-term investments and financial expenses related to loans. Therefore, the financial assets of the Company and its subsidiaries are free from material risk, as these are remunerated at the CDI rate, loans are pegged to TR variation plus fixed spread for financing for production (SFH) purposes, pegged to CDI variation plus fixed spread for CRI, pegged to TJLP plus fixed spread for financing for equipment acquisition through BNDES (FINAME), pegged to CDI loans intended as working capital, and pegged to IGP-M for securitization of receivables purposes. In order to analyze sensitivity, the Company considered financial market projections for The positive or negative impact is as follows: Increase/decrease in percentage Effect on income before taxes -25% -2, % 2,135 Business risk management Risk control system In order to manage risk efficiently, the Company exercises operational control over all projects in progress. Under this management model, the Company calculates potential losses in simulations of unfavorable conditions for each individual venture and for all 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 the Company's 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 defining the strategy for financing and decision-making in regard to selection of projects. Ernst & Young Terco 54

57 20. Financial instruments (Continued) Demand risk management Considering knowledge of the market and contribution of local partners, Direcional can identify the demand for new ventures in different regions, as well as the income level of potential buyers to be served. Launchings are defined based on the potential each region has to absorb a given number of real estate units and respond to price changes. The Company does not intend to operate in markets where there is no reliable data available for potential market analysis. By adopting these practices, the Company believes that demand risk is reduced. Operational risks Operational risk management is primarily conducted through ongoing monitoring of the development of projects as regards execution of the physical and financial schedule of works vis-à-vis the initial planning of financial and accounting audit, performed by an independent auditor, and through a judicious analysis of the legal and credit risks of buyers of real estate units, via active management of the project receivables. Capital management Capital management risk arises from the Company s choice for adopting 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. Key indicators related to this objective are: WACC (Weighted Average Cost of Capital), Net Debt/EBITDA and Net Debt/Equity. Total debt corresponds to Loans and financings (Note 9). The Company may change its capital structure based on economic and financial conditions to improve its financial leverage and debt management. Net debt structure of the Company includes: Loans and financing less Cash and cash equivalents. Description Consolidated 09/30/ /31/2011 Loans and financing 786, ,152 (-) Cash and cash equivalents (460,032) (351,112) Net Debt 326, ,040 Equity 1,392,785 1,232,483 Equity and net debt 1,719,255 1,354, Stock option plan Share-based payment Ernst & Young Terco 55

58 In Special Shareholders Meeting held on December 22, 2009, the Company s shareholders approved a stock option plan, and established the rules and conditions under which options are granted to employees, management members, executives and other personnel, with a view to attracting them, motivating them and retaining them, as well as aligning their interests with the interests of the Company and its shareholders. Two programs were created, totaling 8,674,673 options comprising the same number of shares. The Board of Directors has already granted 7,899,122 options, of which 2,205,512 have already been effectively exercised and 1,756,532 cancelled. Changes in options are as follows: Program 1 Program 2 Grant year 2009 to to 2012 Total number of options (A) 3,963,301 4,711,372 Exercise price R$ 1.20 R$11.58(*) Vesting period 25% p.a. 20% p.a. Changes in options Options granted (B) 4,059,122 3,840,000 Options exercised (2,205,512) 0 Options cancelled (C) (886,532) (870,000) Outstanding options 967,078 2,970,000 Balance of options to be granted (A) (B) (C) 790,711 1,741,372 (*) The exercise price considers issue price restatement by reference to the Extended Consumer Price (IPCA) through, and an adjustment due to payment of dividends amounting to R$0.141/share in May 2010, R$ 0.30/share in February 2011 and R$ 0.27/share in June The fair value of the last options granted was calculated based on a binomial calculation, considering historical volatility of 29.67%, interest rate of 9.64% p.a., and the corresponding exercise prices of each program. The average fair value of Program 1 options was estimated at R$ and those of Program 2, R$ 5.18 each. For the three-month period ended, the Company set up a provision amounting to R$ 2,446. Future expenses to be recognized over the following 54 months related to the plans amounted to R$ 10,592 as of. If the beneficiaries to all option already granted and not exercised of Programs 1 and 2 exercise their options, maximum dilution of participation of current shareholders will be 2.56%. Ernst & Young Terco 56

59 Earnings Release Belo Horizonte, November 5 th Direcional Engenharia S.A., one of the largest homebuilders in Brazil, focused on developing large scale and low-income projects, operating in the North, Midwest and Southeast regions in Brazil, discloses hereby its operating and financial results for the third quarter of 2012 (). Unless otherwise indicated, the information included in this document is expressed in Brazilian Reais (R$) and the PSV is % Direcional. The Company s consolidated financial statements are prepared in accordance with accounting practices adopted in Brazil, based on Brazilian Corporate Law and CVM regulations. TICKER: DIRR3 Share price 01/11/2012: R$ Number of shares: 153,972,578 Market Cap: R$ 1,886.2 million / US$ million Free Float: 52% average daily volume: thousand shares R$ 2,486.8 thousand TELECONFERENCE Date: 11/06/2012 Tuesday Portuguese 12:00 pm Brasília time English 09:00 am New York time (Simultaneous Translation) Contact telephone numbers: Calling from Brazil: + 55 (11) Calling from other countries: +1 (516) PASSWORD: DIRECIONAL DIRECIONAL POSTS RECORD NET REVENUE OF R$ 1.0 BILLION IN 9M12 AND R$ 373 MILLION IN, 32% AND 25% UP, RESPECTIVELY, ON THE SAME PERIODS IN FINANCIAL AND OPERATING HIGHLIGHTS Record Net Revenue of R$ million in, a 25.2% increase over 3Q11. Year-to-date net revenue totaled R$ 1.0 billion, 31.9% more than in 9M11. Adjusted¹ Gross Profit of R$ million in and R$ million in 9M12, 15.3% and 28.0% up on 3Q11 and 9M11, respectively. Adjusted¹ Gross Margin of 30.0% in. Adjusted² Net Income of R$ 57.1 million in and R$ million in 9M12, with respective adjusted² net margins of 15.3% and 15.7%. Cash Flow adjusted for accounts receivable from completed units totaling R$ 38.6 million in 9M12. Net Debt/Equity Ratio of 23.4%. Launches and Sales: launched PSV of R$ million and contracted sales of R$ million in. MCMV Level 1 Contracting Record: PSV of R$ million and 6,398 units in. Sales over Supply Ratio: 41.3% in. CONTACT: Carlos Wollenweber CFO IR +55 (31) Paulo Sousa IR Analyst +55 (31) Cristiano Faria IR Analyst +55 (31) ir@direcional.com.br Inventory Sales: units in inventory accounted for 65.8% of PSV sold in. Delivery of 15 projects in 9M12, totaling 8,338 units with a PSV of R$ million. 1 - Adjustment excluding capitalized interest for production financing. 2 - Adjusted for non-cash expenses with stock-option program.

60 EARNINGS RELEASE INDEX MESSAGE FROM MANAGEMENT... 3 KEY INDICATORS... 6 LAUNCHES... 7 CONTRACTED SALES... 9 SALES SPEED (SALES OVER SUPPLY RATIO) PROJECTS DELIVERED LAND BANK INVENTORY FINANCIAL PERFORMANCE Gross Operating Revenue Net Operating Revenue Gross Profit Selling, General & Administrative (SG&A) Expenses Adjusted¹ EBITDA Adjusted¹ Net Income Deferred Results BALANCE SHEET HIGHLIGHTS Accounts Receivable Cash and Cash Equivalents Change in Net Debt or Cash Burn Debt SHARE PERFORMANCE CONSOLIDATED BALANCE SHEET CONSOLIDATED RESULTS STATEMENT EBITDA RECOMPOSITION CONSOLIDATED CASH FLOW STATEMENT ADDED-VALUE STATEMENT GLOSSARY

61 EARNINGS RELEASE MESSAGE FROM MANAGEMENT It gives us great satisfaction to present our financial and operating results for the third quarter and first nine months of the year, a period in which (i) we became the most important player in the very-low income segment, (ii) we maintained our focus on the industrialization and scale of our construction sites, and (iii) we delivered 8,338 units. This year we have already delivered 13 development projects and 2 Level 1 projects under the Minha Casa, Minha Vida My Home, My Life program ( MCMV Level 1 ), with a total PSV of R$ 832 million. All in all, the developments accounted for 4,187 units delivered and the MCMV Level 1 projects for 4,151 units. It is worth noting that Direcional has two business segments: (i) real estate development and (ii) the construction segment, essentially for Caixa Econômica Federal and Banco do Brasil, for the construction of MCMV Level 1 residential units for families with a household income of up to R$ 1,600 per month. Development MCMV Level 1 In the development segment, we launched 2,768 units in the first nine months of 2012, equivalent to PSV of R$ 497 million, and sold 3,256 units. Sales volume therefore represented 117% of launched units and 96% of launched PSV, enabling us to maintain low inventory levels. Development projects accounted for 69% of gross revenue in the third quarter. The construction segment, which represented 31% of gross revenue, accounted for 57% of the launched PSV in 9M12, when we contracted four projects totaling 10,398 units with a joint PSV of R$ 659 million. It is worth noting that between 2008 and 2011, our growth was primarily fueled by this segment, which recorded average growth of 87% by year as of 2009, versus 9% by year for development projects. Launched PSV Development (R$ million) Project Acquisition Launched PSV CAGR +9% 131 Launched PSV - Service Projects (R$ million) CAGR +87% M Since the beginning of the Minha Casa, Minha Vida program, we have already contracted 10 MCMV Level 1 projects, comprising 26,661 units (averaging 2,666 units per site) with a combined PSV of R$ 1.6 billion, equivalent M12 3

62 EARNINGS RELEASE to around 4% of the total number of units contracted by the entire program to date and consolidating our strategic position as Brazil s most important player in this segment. CONTRACTED UNITS DIRECIONAL SHARE Minha Casa, Minha Vida Level 1 734,581 26,661 4% This leading position, underpinned by solid margins and the creation of value for our shareholders, is based on an industrialized construction model, supported by three pillars: (i) a construction technology based on aluminum molds and concrete walls; (ii) large-scale projects (over 1,000 units per site); and (iii) the use of the Company s own workforce, eliminating the need for outsourcing. We closed with 41,000 units under development. The chart below shows the share of industrial construction technology in the total number of units under construction. Units Under Construction by Construction Method (% of Units) 9% 8% 63% 60% 7% 8% 9% 9% 9% 49% 44% 41% 35% 32% 28% 32% 44% 48% 50% 55% 59% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Conventional Structure (Concrete Pillars) Concrete Blocks Industrial Construction¹ 1 Using aluminum molds and concrete walls On August 28, 2012 the Ministry of the Cities increased the MCMV Level 1 price cap by 15.6% (national average), around 8 p.p. above construction sector inflation (INCC) in the same period. The chart below shows the total number of units contracted by Direcional since the beginning of the program and the average contracting price. Contracted Units on MCMV Level 1 (# of Units) +8% 63,417 58,892 51, % Average Price +17% 7,391 8,872 10, % M12 On the financial front, we recorded net revenue of R$ 373 million in, 25% up on 3Q11 and 15% more than in 2Q12. Year-to-date net revenue totaled R$ 1,024 million, 32% higher than in the first nine months of last year. Gross revenue from development projects came to R$ 736 million in 9M12, 21% up-year-on-year, while gross revenue from construction services stood at R$ 321 million, up 72% in the same period. 4

63 EARNINGS RELEASE We delivered in the 9M12 and adjusted¹ gross margins of 34% and 35%, respectively, from development projects, and 22% and 20%, respectively, from construction services. Although the MCMV Level 1 projects have lower gross margins, they also have exceptionally low cash exposure, no selling expenses or financing interest, an extremely low tax rate of 1% of revenue (Special Tax Regime RET 1%) and half the administrative expenses associated with project contracting and management, thereby ensuring healthy net margins and returns. Adjusted gross profit² came to R$ 310 million in 9M12, 28% up on the same period last year, representing an adjusted gross margin¹ of 30.3%. Third-quarter adjusted gross profit stood at R$ 112 million, with an adjusted gross margin¹ of 30%. Year-to-date adjusted net income² totaled R$ 161 million, accompanied by an adjusted net margin² of 15.7%; while adjusted net income² came to R$ 57 million, with an adjusted net margin² of 15.3%. Third-quarter annualized ROE stood at 17.7%. Our cash burn in 9M12 and totaled R$ 163 million and R$ 43 million, respectively. Year to date, accounts receivable from completed units increased by R$ 201 million, due to the large volume of development projects delivered throughout 2012, most of which funded with SFH financing, in which client financing is transferred to banks. Our cash burn net of accounts receivable from completed units rise, represented cash flow of R$ 39 million. It is worth noting the growth in client financing transfers, which came to R$ 83 million in 1Q12, R$ 100 million in 2Q12 and R$ 136 million in. We closed the third quarter with gross debt of R$ 787 million and a cash position of R$ 460 million, giving net debt of R$ 326 million, equivalent to only 23% of shareholders equity, an exceptionally comfortable level of leverage when compared to the sector average. Also in, pursuant to CVM Instruction 400, we conducted a public issue of Certificates of Real Estate Receivables (CRIs) totaling R$ 101 million, which proved highly successful. Final demand was twice the value of the offering and the CRIs generated returns of the CDI interbank rate plus 0.8% per year Financial settlement took place on September 25th. We will use the increased cash liquidity to reduce our cost of capital and eliminate outstanding debt from development projects already delivered whose production financing was contracted before the interest rate reduction cycle began. We are still extremely optimistic in regard to sector opportunities, especially in the low and very low income segments. We have every confidence in our differentiated execution capacity, which allows us to take advantage of the high demand associated with the substantial government incentives in MCMV Level 1, and grow at a brisk pace with low cash commitment. We would also like to reaffirm our confidence in our business model and our commitment to maintaining Direcional s position as one of the most efficient and profitable companies in the market, focusing on creating value for our clients and shareholders. Direcional Engenharia S.A. s Management 1 - Adjustment excluding capitalized interest for production financing. 2 - Adjusted for (non-cash) expenses with stock-option program. 5

64 EARNINGS RELEASE KEY INDICATORS Launches 3Q11 9M12 9M11 (a) (b) (a/b) (c) (d) (c/d) Launched PSV (R$ '000) 604, , % 1,280, , % Launched PSV - % Direcional (R$ '000) 543, , % 1,156, , % Launched PSV (R$ '000): MCMV Level 1 400, , % 659, , % Launched PSV (R$ '000): ex MCMV Level 1 projects 142,698 63, % 497, , % Average Direcional Stake (%) 89.8% 85.6% 4.2 p.p. 90.3% 91.6% -1.2 p.p. Units Launched 7,015 6, % 13,166 9, % Launched Units: MCMV Level 1 6,398 5, % 10,398 5, % Launched Units: ex MCMV Level % 2,768 4, % Average Price (R$/unit) 86,237 71, % 97, , % Sales Contratcted PSV (R$'000) 593, , % 1,235, , % Contracted PSV - % Direcional (R$ '000) 558, , % 1,138, , % Contracted PSV - % Direcional (R$ '000): MCMV Level 400, , % 659, , % 1 Contracted PSV - % Direcional (R$ '000): ex MCMV 157, , % 479, , % Level Units 1 7,351 6, % 13,654 8, % # of Units: MCMV Level 1 6,398 5, % 10,398 5, % # of Units: ex MCMV Level % 3,256 3, % Average Price (R$/unit) 80,761 74, % 90, , % Sales Over Supply (% PSV) 41.3% 36.7% 4.7 p.p. 58.5% 50.4% 8.1 p.p. Sales Over Supply (% PSV): ex MCMV Level % 16.0% 2.6 p.p. 39.7% 39.5% 0.1 p.p. Financial Indicators Net revenue (R$ '000) 372, , % 1,023, , % Gross Income (R$ '000) 99,142 88, % 274, , % Gross Margin (%) 26.6% 29.7% -3.1 p.p. 26.8% 28.1% -1.3 p.p. Adjusted Gross Margin (%) 30.0% 32.6% -2.6 p.p. 30.3% 31.2% -0.9 p.p. Adjusted EBITDA (R$ '000) 69,780 73, % 211, , % Adjusted EBITDA Margin (-%) 18.7% 24.6% -5.9 p.p. 20.6% 23.1% -2.4 p.p. Adjusted Net Income (R$ '000) 57,122 59, % 160, , % Adjusted net Margin (%) 15.3% 20.0% -4.7 p.p. 15.7% 19.4% -3.7 p.p. Other Indicators 2Q12 1Q12 4Q11 3Q11 2Q11 Annualized ROE¹ (%) 17.7% 15.9% 18.4% 16.6% 21.1% 14.9% ROE LTM² (%) 16.9% 17.7% 17.5% 17.7% 19.6% 20.3% Cash and Cash Equivalent (R$ '000) 460, , , , , ,768 Total Debt (R$ '000) 786, , , , , ,630 Net Debt (R$ '000) 326, , , ,040 94,090 26,862 Shareholder's Equity (R$ '000) 1,392,785 1,331,447 1,297,768 1,232,483 1,198,297 1,145,298 Net Debt / Shareholder's Equity (%) 23.4% 21.3% 14.8% 9.9% 7.9% 2.3% Net Debt / EBITDA last 12 months 1.2X 1.0X 0.8X 0.5X 0.3X 0.1X Revenues to be Rocognized (R$ '000) 1,733,577 1,484,331 1,434,378 1,482,460 1,325,614 1,076,828 Results to be Recognized (R$ '000) 573, , , , , ,473 Margin to be Recognized (%) 33.1% 37.2% 38.5% 37.8% 37.7% 38.4% Inventories (R$ '000) 863, , , , , ,918 Inventories - % Direcional (R$ '000) 742, , , , , ,437 Total LandBank (R$ '000) 9,008,558 9,107,634 9,189,705 9,203,767 9,258,392 9,298,060 LandBank - % Direcional (R$ '000) 6,820,418 6,895,393 6,934,290 6,948,338 6,991,495 6,985,975 LandBank - Units 66,559 66,859 67,089 66,906 67,361 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 6

65 EARNINGS RELEASE LAUNCHES Direcional launched PSV of R$ million in, 15.5% and 44,1% up on 2Q12 and 3Q11, respectively. Of the third-quarter total, R$ million corresponded to development projects and R$ million to three contracted MCMV Level 1 projects. In the first nine months, PSV totaled R$ 1,156.6 million, 30.2% more than in 9M11. Verano Residencial 3 rd Phase PA (PSV R$ 21.1MM) Residencial Bella Toscana MG (PSV R$ 21.2MM) Residencial Bella Verona MG (PSV R$ 20.6MM) Del Rey - Comercial MG (PSV R$ 79.7MM) Residencial Macapaba 2 nd Phase AP (PSV R$ 135.0MM) Orgulho Tropical CE (PSV R$ 129.2MM) Orgulho do Ceará 2 CE (PSV R$ 136.2MM) The table below shows consolidated details of the projects launched in 9M12: 9M12 Projects Date City - State Total (R$ '000) PSV % Direcional (R$ '000) # of Units Launched Launched Units Total Units (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, ,392 RET1% 3 Setor Total Ville 8 th Phase March Santa Maria - DF 59,720 59, ,672 Low-Income Total 1Q12 143, ,248 1,091 9,311 1 Splendore April Manaus - AM 83,805 83, Upper-Midle 2 Parque Silvestre - 3 rd Phase April Rio de Janeiro - RJ 12,674 10, RET1% 3 Del Mar April Macaé - RJ 31,024 15, Medium 4 Grand Ville - 2 nd Phase April São Bernardo - SP 56,749 43, Medium 5 Veredas Vistas do Horizonte May Belo Horizonte - MG 44,514 22, Medium 6 Monte Rey Hotel June Belo Horizonte - MG 44,196 35, Commercial 7 Orgulho do Madeira June Porto Velho - RO 258, ,988 4,000 4,000 MCMV Level 1 Total 2Q12 531, ,208 5,060 6,155 1 Verano Residencial - 3 rd Phase July Belém - PA 21,147 21, Medium 2 Residencial Bella Toscana August Belo Horizonte - MG 42,481 21, Upper-Midle 3 Residencial Bella Verona August Belo Horizonte - MG 41,282 20, Upper-Midle 4 Del Rey - Comercial September Belo Horizonte - MG 99,614 79, Commercial 5 Residencial Macapaba - 2 nd Phase September Macapá - AP 134, ,958 2,218 4,366 MCMV Level 1 6 Orgulho Tropical September Sobral - CE 129, ,228 2,084 2,084 MCMV Level 1 7 Orgulho do Ceará 2 September Maracanaú - CE 136, ,240 2,096 2,096 MCMV Level 1 Total 604, ,124 7,015 9,939 Total 9M12 1,280,238 1,156,581 13,166 25,405 7

66 EARNINGS RELEASE The following charts show launch trends: Launched PSV (R$ million) Project Acquisition Development MCMV 1st Layer +44% % , % 1, Launched PSV Track Record (R$ million) Development MCMV 1st Layer CAGR +69% , , , Q11 2Q12 9M11 9M M12 Breakdown of Launches Direcional remains focused on the low and very-low-income segments. In 9M12, 57% of launched PSV was concentrated in MCMV Level 1, a segment which we expanded to the country s Northeast by contracting the Orgulho Tropical and Orgulho do Ceará 2 projects, both of which in Ceará state, totaling 4,180 units with a joint PSV of R$ million. The charts below give a breakdown of launches by economic segment and region: Launches by Segment (% PSV) Launches by Region (% PSV) 13% 4% 83% 15% 11% 14% 5% 8% 11% 4% 25% 9% 9% 22% 74% 57% 35% 17% 83% 22% 49% 29% 6% 5% 27% 26% 23% 68% 46% 3Q11 9M11 Commercial Medium MCMV Level 1 Upper Middle Low-Income 9M12 3Q11 Midwest Southeast Northeast North 9M11 9M12 8

67 EARNINGS RELEASE Launches by Region Development (% PSV) Launches by Region - MCMV Level 1 (% PSV) 9% 12% 100% 85% 41% 59% 100% 66% 100% 40% 15% 50% 29% 34% 60% 3Q11 Midwest Southeast 9M11 Northeast North 9M12 3Q11 Midwest Southeast Northeast 9M11 North 9M12 The following table gives consolidated details of our and 9M12 launches, compared to those in 3Q11 and 9M11, respectively: Launches 3Q11 9M12 9M11 (a) (b) (a/b) (c) (d) (c/d) Launched PSV (R$ '000) 604, , % 1,280, , % Launched PSV % Direcional (R$'000) 543, , % 1,156, , % Direcional's share (%) 89.8% 85.6% 4.2 p.p. 90.3% 91.6% -1.2 p.p. Launched PSV (R$ '000): MCMV Level 1 400, , % 659, , % Launched PSV (R$ '000): ex MCMV Level 1 142,698 63, % 497, , % Units Launched 7,015 6, % 13,166 9, % Units Launched: MCMV Level 1 6,398 5, % 10,398 5, % Units Launched: ex MCMV Level % 2,768 4, # of Projects % % Units Launched/# of Projects 1,002 2, % % Total Units/# of Projects (all phases) 1,420 3, % 2,541 2, % Usable Area Launched (sq. m) 342, , % 622, , % Average Area (sq. m / unit) % % Average Price (R$/unit) 86,237 71, % 97, , % Average Price (R$/sq.m) 1,767 1, % 2,057 2, % CONTRACTED SALES Contracted sales totaled R$ million in, 24.7% and 29.8% up, respectively, on 2Q12 and 3Q11. Contracted projects from MCMV Level 1 accounted for R$ million of the quarterly total, and the remaining R$ million came from development projects, 10.7% up on the third-quarter launched volume. Year-to-date contracted sales came to R$ 1.1 billion, 47.1% up on the first nine months of

68 EARNINGS RELEASE The charts below show the Company s contracted sales: Contracted PSV (R$ million) Track Record Contracted PSV (R$ million) Project Acquisition Development MCMV 1st Layer +30% % % 1, Development MCMV Level CAGR +76% , , , Q11 2Q12 9M11 9M M12 Breakdown of Sales As with launches, most 9M12 sales were in the low-income segment and in the North region, with 72% of sales concentrated in the low-income and MCMV Level 1 segments. In geographical terms, 77% of sales were in the North and Northeast. The charts below give a breakdown of and 9M12 sales by economic segment and region: Sales bysegment (% PSV) Sales byregion (% PSV) 4% 1% 11% 11% 73% 10% 2% 9% 7% 72% 5% 7% 28% 20% 40% 7% 5% 16% 14% 58% 6% 3% 92% 3% 16% 48% 34% 11% 20% 69% 4% 19% 23% 54% 3Q11 9M11 9M12 3Q11 9M11 9M12 Commercial Upper-Middle Medium Low-Income MCMV 1st Layer Midwest Southeast Northeast North 10

69 EARNINGS RELEASE Sales byregion - Development Sales by Region MCMV Level 1 (% PSV) (% PSV) 9% 9% 19% 9% 21% 40% 56% 34% 45% 66% 100% 100% 70% 34% 48% 46% 34% 60% 3Q11 9M11 9M12 3Q11 9M11 9M12 Midwest Southeast Northeast North Midwest Southeast Northeast North The following table compares the consolidated and 9M12 sales figures with those of 3Q11 and 9M11: Contracted Sales 3Q11 9M12 9M11 (a) (b) (a/b) (c) (d) (c/d) Contracted PSV (R$ '000) 593, , % 1,235, , % Contracted PSV % Direcional (R$ '000) 558, , % 1,138, , % Contracted PSV % Direcional (R$ '000): MCMV Level 1 400, , % 659, , % Contracted PSV % Direcional (R$ '000): ex MCMV Level 1 157, , % 479, , % # of Units 7,351 6, % 13,654 8, % # of Units: MCMV Level 1 6,398 5, % 10,398 5, % # of Units: ex MCMV Level % 3,256 3, % Average Price (R$/unit) 80,761 74, % 90, , % VSO (Sales over total supply) 41.3% 36.7% 4.7 p.p. 58.5% 50.4% 8.1 p.p. VSO (Sales over total supply) - Ex-MCMV Level % 16.0% 2.6 p.p. 39.7% 39.5% 0.1 p.p. Project Acquisition: PSV (R$ '000) - - n/a - 89,080 n/a Contracted PSV % Direcional + Project Acquisition (R$ '000) 558, , % 1,138, , % 11

70 EARNINGS RELEASE SALES SPEED (SALES OVER SUPPLY RATIO) The sales over supply ratio reached 41.3% in, an expressive sales pace. Excluding MCMV Level 1 sales, the ratio stood at 18.7%, 2.6 p.p. higher than in 3Q11. Sales-over-supply ratio (VSO) Sales-over-supply ratio (VSO) (% Total PSV) 36,7% 31,8% 36,5% 41,3% (In Units) 58,8% 47,4% 59,0% 70,3% 16,0% 18,5% 16,1% 21,2% 18,7% 17,4% 18,4% 16,9% 25,8% 23,5% 3Q11 4Q11 1Q12 2Q12 3Q11 4Q11 1Q12 2Q12 Without MCMV 1st Layer project With MCMV 1st Layer project Sales over Supply Ratio = Period Sales/(Opening Inventory + Period Launches) The chart below shows the sales speed per launch quarter. In, 95% of launched units were sold in the same quarter. The following chart gives a breakdown of sales per launch period, excluding MCMV Level 1 launches. In this quarter, 66% of the sold units were inventory, and 38% from projects launched before Sales Speed (% Units) Sales byperiod of Launching - (% PSV Ex-MCMV 1 st Layer) 95% 2Q12 88% 3% 91% 1Q12 10% 51% 22% 83% 1% 4Q11 85% 2% 6% 94% 1% 3Q11 90% 2% 2% 96% 3 M 6 M 9 M 12 M 15 M 1% 34% 14% 2Q12 < % % 17% % 1Q12 12

71 EARNINGS RELEASE PROJECTS DELIVERED Direcional delivered 8,338 units in 9M12, with a total PSV of R$ million. Of this total, 4,187 units were in the development segment, with a PSV of R$ million, 151% and 122%, respectively, up on the number of units and PSV launched in 9M11. The table below shows consolidated details of the projects launched in 9M12: PSV Delivered Projects 9M12 Date City State Total (R$ mil) % Direcional (R$ mil) # Units 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 1Q12 234, ,077 1,619 1 Total Ville Marabá - 1 st Phase April Marabá - PA 57,140 57, Low-Income 2 Garden Club - 2 nd Phase June Porto Velho - RO 19,641 15, Low-Income 3 Setor Total Ville - 1 st Phase June Santa Maria - DF 39,146 39, Low-Income Total 2Q12 115, ,989 1,107 1 Gran Ventura July Belo Horizonte - MG 48,446 47, Medium 2 Vita Bella Residencial Club July Porto Velho - RO 59,733 59, Low-Income 3 Brisas do Madeira - Towers: 1, 2, 4 and 6 July Porto Velho - RO 62,940 62, Medium 4 Weekend Club - Towers: A and E August Manaus - AM 68,570 54, Medium 5 Parque Verde August Manaus - AM 31,373 31, Low-Income 6 Total Ville Marabá - 2 nd Phase August Marabá - PA 30,445 30, Low-Income 7 Residencial Meu Orgulho - 1 st Phase August Manaus - AM 190, ,598 3,511 MCMV Level 1 8 Bairro Carioca - Plots: 1, 2 and 3 August Rio de Janeiro - RJ 32,640 32, MCMV Level 1 Total 524, ,077 5,612 Total 9M12 875, ,142 8,338 Gran Ventura MG (PSV R$ 47.5MN) Vita Bella Residencial Club RO (PSV R$ 59.7MN) Brisas do Madeira RO (PSV R$ 62.9MN) Weekend Club AM (PSV R$ 54.9MN) Parque Verde - AM (PSV R$ 31.3MN) Total Vile Marabá 2 nd Phase PA (PSV R$ 30.4MN) 13

72 EARNINGS RELEASE LAND BANK Direcional closed the third quarter with a land bank PSV of R$ 6.8 billion, representing an estimated building potential of 66,559 units. It is worth noting that the land bank has no MCMV Level 1 sites. Land Bank by Segment (% PSV) Low-Income 55.0% Land Bank by Region (% PSV) 7.0% Upper-Middle 35.0% 3.0% Medium Commercial 59.3% large scale projects (over 1,000 units) 74.9% are eligible for the MCMV Program 75.1% foram acquired by physical or financial Swap Average cost of 9,1% over PSV AM 13.6% RO 4.6% PA 13.2% DF GO 20.6% 1.6% MG 38.2% SP 5.6% RJ 1.1% ES 1.5% The table below shows the land bank inventory by state at the close of : State Total PSV (R$ 000) % Direcional Average % Direcional # Units Usable Area Average Price R$/Units R$/sq.m. MG 3,482,435 2,612, % 27,123 1,535, ,394 2,268 DF 2,543,525 1,402, % 18,508 1,070, ,428 2,375 AM 943, , % 5, , ,703 2,697 PA 897, , % 8, , ,141 2,014 SP 458, , % 2, , ,455 3,048 RO 340, , % 2, , ,337 2,282 ES 129, , % , ,023 2,500 GO 108, , % 1,274 55,030 85,000 1,968 RJ 105,000 73, % , ,000 6,446 TOTAL 9,008,558 6,820, % 66,559 3,824, ,347 2,356 14