1

Earnings Release | Conference Call – 3Q15

November 10th, 2015

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Agenda

Ricardo Ribeiro

Vice President

Fernando Ramos

CFO and IR Officer

Operational Highlights

Financial Highlights

Highlights

Contracted net sales in the Development business reached aPSV of R$ 241 million in 9M15, while the low-income segment(MCMV Program Levels 2 and 3) was responsible for 40%;

More than R$ 107 million of cash flow distributed toshareholders, being R$ 66.9 million through dividends andR$ 40.5 million through the share buyback program;

Solid capital structure, with net debt to equity of 21%,one of the lowest among our peers;

In 9M15, seven land plots were acquired forthe low-income segment (MCMV Program Levels2 and 3). The construction potential of theseplots is 4,737 units and a PSV of R$ 445 million;

By the end of 3Q15, deferred revenue (backlog) totaled R$ 2.7 billion, most of it refers to MCMV Level 1 projects (R$ 2.2 billion).

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Launches

9M15

-50%

-79%

-24%

9M14

303

3Q15

36

2Q15

174

3Q14

72

230

Launches: Development

(PSV - R$ million)

In 3Q15, Direcional launched one project, located in Piracicaba –SP and included in MCMV Program Levels 2 and 3. This project has 512 units and PSV of R$ 72 million, the share of Direcional is equivalent to R$ 36 million;

In 9M15, 55% of launches were targeted at the low-income segment.

Launches by Region - 9M15(% PSV)

61%

Southeast

Midwest

39%

Launches by Segment - 9M15(% PSV)

Medium

24%

Upper-MiddleLow-Income 22%

55%

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Contracted Net Sales

+47%

-17%

-20%

9M15

241

9M14

300

3Q15

93

2Q15

112

3Q14

63

Contracted Net Sales: Development

(PSV R$ million)

Contracted net sales reached R$ 93 million in 3Q15, a 47% growth compared to 3Q14;

36% of the sales made in 3Q15 are comprised by inventory units from projects launched before 2013;

In 9M15, the Low-Income segment reached 40% of total sales, and projects located in the southeast region represented 41% of the total sales;

The northern region was responsible for 30% of sales in 9M15, even though it had no launches in the period.

Southeast41%

North

30%

Midwest

29%

Sales by Region – 9M15(% PSV)

19%

Upper-Middle / Commercial

Low-Income Medium41%40%

Sales by Segment – 9M15(% PSV)

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Sales Cancellations

Sales Cancellations by Region – 9M15(% Units)

Sales Cancellations by Period of Launching – 9M15(% Units)

Sales Cancellations and Resale of Cancelled Units

(Units)

1,261

1,862

504351406

633617632872

318245309511516553

1,600

86%

63%70%76%81%84%88%

69%74%63%

60%59%70%64%

75%

+44%

-18%

-32%

9M154Q143Q142Q14 2Q151Q15 9M143Q15

<201268% 2015

2%

201412%

2012

6%

11% 2013

23%

17%Midwest

Southeast

North59%

63% of the units arising from canceled sales in 3Q15 were resold in the same period. This ratio was 69% for the 9M15;

Decrease of 32% in the volume of units arising from canceled sales in 9M15 yoy;

In 3Q15, sales cancellations totaled R$ 80 million, in line with the same period 3Q14. When compared to 2Q15, there was growth of 65%;

Concentration of cancellations in projects launched until 2012 as well as in the Northern region.

6Resale in the PeriodResale (until 3Q15)Cancellations % Resale (until 3Q15)

Inventories

Inventory by Region(% PSV)

Inventory Evolution – 9M15 (PSV R$ million)

Inventory by Launch Period(% PSV)

9M15

897

Price

adjustment

and swaps

62

Net Sales

241

Launches

230

2014

846

Finished Units

26%

<2012

14%

201220%

2013

5%

2014

19%

201515%

Midwest

Southeast56%32%North

13%

By the end of 3Q15, Direcional had 2,960 units in inventory totaling a PSV of R$ 897 million in terms of market value;

Reduction of R$ 28 million in PSV in inventories during the 3Q15;

Reduction of R$ 38 million (12%) in inventories in the Northern region, when compared to the end of 2014.

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Inventory - Finished Units

Inventory Evolution (Units)

Finished Inventory(Geographic Segmentation - % PSV)

18%

Southeast60% North22%

Midwest

Direcional presented a high turnover of its inventory of finished units. Over the 9M15, Direcional sold 46% of the units that were concluded by the end of 2014;

Reduction of R$ 33 million in finished inventory of the Northern region during 9M15, representing a reduction of 39%;

27% of the inventory of finished units is comprised by hotel units, which have a low carrying cost.

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341424

822

739

Concluded

Inventory 9M15

Delivery and Sales

Cancellations Units

Gross Sales of

Concluded Units

Concluded

Inventory 2014

13%

Southeast 47%

North40%

Midwest

Finished Inventory 2014(Geographic Segmentation - % PSV)

Fernando Ramos

CFO and IR Officer

Financial Highlights

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Financial Results

1. Adjustment excluding interest on financing for construction;

Gross Operating Revenue

(R$ million)

Adjusted¹ Gross Profit and Gross Margin

(R$ million)

-12%

+4%

-8%

9M15

1,233

791

441

9M14

1,337

878

459

3Q15

415

236

179

2Q15

354

120

238

161

3Q14

474399

Revenues from Real Estate Sales

Revenues from Services

112

307250

8185

-22%

9M15

287

-15%

+2%

37

24.5%

9M14

340

33

26.4%

3Q15

96

15

24.5%

9

24.8%

3Q14

123

11

26.6%

94

2Q15

Interest capitalized in costs

Gross ProfitAdjusted Gross Margin¹

10

G&A Expenses

(R$ million)

Selling Expenses

(R$ million)

Net Income

(R$ million)

Financial Results

79

262628

84

-6%

-3%

-8%

9M15

6.7%

9M14

6.5%

3Q15

6.5%

2Q15

7.0%

3Q14

6.0%

G&A% Net revenue

93

145

292852

3Q14

11.3%

3Q15

7.3%

2Q15

7.3%

+4%

11.3%7.9%

9M14

-45%

9M15

-36%

Net Margin Net Income

30

39

121114

9M15

-18%

2.6%

9M14

-22%

+6%

2.8% 3.0%

3Q15

2.9%

2Q153Q14

3.0%

% Net revenue

Selling Expenses

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Cash Flow Generation

Cash Flow Generation (Cash Burn)

(R$ million)

1. Cash flow generation: net debt variation net of dividends and share buyback programs

Mortgage Transfer (“Repasses”)

(R$ million)

2011

-176

22

2014

158

2013

76

2012

-183

9M15

4

3Q14

358

9M14

34

91

3Q15

91

70

21

2Q15

92

88

29

167

138

449

-1%

9M15

-33%

-46%

301

267

"Associativo"

SFH

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Capital Structure

Capital Structure

(R$ million)

Gross Debt Breakdown

(% of Debt)

FINAME and Leasing4.0%

Debentures20.5%

Working Capital

0.4%

SFH69.0%

CRI10.0%

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Dividends Cash

3Q15

504

Cash Burn

31

SFH Debt

45

Corporate

debt

28

Buyback

Program

6

40

Cash

2Q15

563

Cash Position Changes - 3Q15

(R$ million)

Net Debt

Without SFH

-233

Net Debt

369

Cash and

Cash

Equivalent

504

Debt

873

SFH

602

271

Debt

(R$ million)

201

Net Debt

11.4% 16.6% 21.0%

Net Debt/Equity

292 369

31%35%

40%

3Q15

504

873

2Q15

563

855

3Q14

718919

% Corporate Debt

Cash

Corporate Debt

31%35%

40%

602

2Q15

299

557

3Q14

367

552

3Q15

271

SFH

Buyback program

Direcional concluded its repurchase program in this quarter (3Q15), with the acquisition of 1.5million shares, at an average price of R$ 3.63, totaling a disbursement of R$ 5.6 million. In 9M15,7.0 million shares were repurchased, with total disbursement of R$ 40.5 million.

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Total Approved 7,034,205

Total Runs 7,034,205

% Executed 100%

Plan Buyback (Status until 9/30/2015)

Disclosure and Contacts

This presentation contains certain forward-looking statements concerning the business prospects, projections of

operating and financial results and growth potential of the Company, which are based on management’s current

expectations and estimates of the future performance of the Company. Although the Company believes such

forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations

will be achieved. Expectations and estimates that are based on the future prospects of the Company are highly

dependent upon market behavior, Brazil’s political and economic situation, existing and future regulations of the

industry and international markets and, therefore, are subject to changes outside the Company’s and

management’s control. The Company undertakes no obligation to update any information contained herein or to

revise any forward-looking statement as a result of new information, future events or other information.

www.direcional.com.b/ri

ri@direcional.com.br

(55 31) 3431-5509

(55 31) 3431-5510

(55 31) 3431-5511

Fernando José Mancio Ramos

CFO | IR Officer

IR Office

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