1

1Q13 Results

Conference Call

May 13th, 2013

Safe-Harbor Statement

We make forward-looking statements that are subject to risks and uncertainties, These statements are based on the beliefs and

assumptions of our management, and on information currently available to us, Forward-looking statements include statements

regarding our intent, belief or current expectations or that of our directors or executive officers.

Forward-looking statements also include information concerning our possible or assumed future results of operations, as well as

statements preceded by, followed by, or that include the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,''

''intends,'' ''plans,'' ''estimates'' or similar expressions, Forward-looking statements are not guarantees of performance, They

involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that

may or may not occur, Our future results and shareholder values may differ materially from those expressed in or suggested by

these forward-looking statements, Many of the factors that will determine these results and values are beyond our ability to

control or predict.

1

Financial Performance – André Bergstein, CFO

Overview of 1Q13 Results - Duilio Calciolari, CEO

• Launches reached R$308 mn, with sales of R$218 mn in 1Q13, in keeping

with lower seasonal activity

• Consolidated sales velocity was 5.9%, or 7.2% ex-Tenda, reflecting higher

sales cancellation

• 1,300 units delivered in 1Q13

• Operating results are not yet reflected in the financial statements as margins

continue to be impacted by the resolution of legacy projects and structural

changes made to restore profitability

• New Tenda business model to minimize costs, time and balance sheet risk,

while maintaining high construction standards

3

1Q13 Highlights and

Recent Developments

-453

-335 -273

-148 -58

-200

-76

231 149

381

20

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

• Cash position of R$1.4 bi in 1Q13

• Consolidated operating cash flow reached R$122 mn in 1Q13

• Cash generation of R$20 mn (pro-forma) and cash burn of R$89 mn in 1Q13, under

new accounting method

• Increased overall launch activity and land purchases (R$53 mm of recent acquisition)

to result in neutral operating cash flow in 2013

Cash Generation

Cash Generation/(Burn) Pro-Forma (3Q10 – 1Q13)

4

Cash burn

Cash generation

¹ including securitization in the amount of R$169 million

-89¹

Note: 1) cash burn of R$ 89mn under new accounting method.

Launches, Sales, Cancellations and SoS

Inventories

BoP1 Launches Dissolution Pre-Sales

Price Adjust + Other5

Inventories EoP2

% Q-o-Q3 VSO4

Gafisa (A) 1,983,694 83,029 191,572 -292,688 -44,486 1,921,120 -3.2% 5.0%

Alphaville (B) 812,174 110,828 57,420 -167,799 -3,696 808,927 -0.4% 12.0%

Total (A) + (B) 2,795,867 193,857 248,992 -460,487 -48,182 2,730,047 -2.4% 7.2%

Tenda (C) 826,671 113,696 232,517 -239,302 -16,589 772,992 -6.5% 0.9%

Total (A) + (B) + (C) 3,622,538 307,553 481,508 -699,789 -208,771 3,503,039 -3.3% 5.9%

Note: 1) BoP beginning of the period – 4Q12. 2) EP end of the period – 1Q13. 3) % Change 1Q13 versus 4Q12.

4) 1Q13 sales velocity. 5) Projects cancelled during the period.

INV

EN

TO

RY

AT

MA

RK

ET

VA

LU

E

1

SA

LE

S O

VE

R

SU

PP

LY

So

S (

%)

SA

LE

S O

VE

R

LA

UN

CH

ES

(%

) 2

3

5%

20% 14%

1Q13 4Q12 1Q12

Gafisa

14%

48%

31%

1Q13 4Q12 1Q12

Gafisa

12%

35%

22%

1Q13 4Q12 1Q12

Alphaville

46%

73% 63%

1Q13 4Q12 1Q12

Alphaville

7%

25% 16%

1Q13 4Q12 1Q12

Gafisa Group Ex-Tenda

67%

45% 53%

1Q12 4Q12 1Q13

Gafisa Group Ex-Tenda

-1% -4%

-31%

1Q13 4Q12 1Q12

Tenda

14%

0%

47%

1Q13 4Q12 4Q11

Tenda

6%

20%

10%

1Q13 4Q12 1Q12

Gafisa Group

32%

67%

48%

1Q13 4Q12 1Q12

Gafisa Group

5

Consolidated Land Bank

6

• Pipeline of projects to be developed in line with current strategy for each segment

• Alphaville acquired R$1.8 bn in the quarter through swap

% Swap

Total

% Swap

untis

% Financial

Swap

# Potential

Units (%co

stake)

# Potential

Units 100%

Gafisa5.343.612 150.388 -83.029 74.164 5.485.136

 38%  37%  1%10.623 12.115

Tenda1.890.797 59.653 -113.696 165.869 2.002.622

30%  20%  10% 17.728 17.728

Alphaville11.434.261 1.815.021 -110.828 -116.692 13.021.761

99% - 99%79.954 128.691

Consolidated 18.668.669 2.025.061 -307.553 123.341 20.509.519 108.305 158.534

Other (price adj.) 1Q13

1T13

4Q12Landbank Acquisitions Launches

Relaunch of Tenda under New Business Model

• Resumption of Tenda launches following restructuring of

operational and financial cycle in 2012

• Run-off of legacy projects to be substantially completed

in 2013

• Launches totaled R$114mn in 1Q13

• During 1Q13, Tenda transferred around 2,451 units to financial

institutions

• 40% of the 1,473 units cancelled during 1Q13 were resold

during the period

• Pre-sales reached R$6.8 million (gross pre-sales of R$239

million and R$232 million in sales calncellation)

• Units are being sold only to customers that have access to a

mortgage and can be immediately transferred to financial

institutions

• All projects qualified for financing under the MCMV or SFH

programs

• During 1Q13, 1300 units were contracted for financing under the

MCMV program

• Sales from launches totaled R$14 million under the process of

being transferred to the banks

Customers Transferred (# of units) vs, % MCMV

Run Off – Tenda

7 1

.89

8

2.5

15

2.3

81

2.8

65

1.8

92

3.0

66

3.1

68

2.8

63

2.7

96

3.6

20

3.1

51

34

33

2.4

51

81% 89%

85%

95%

67%

83%

95% 92% 92% 89% 95% 92% 92%

Transferred units to CEF MCMV (%)

0

5

10

15

20

25

30SP

RJ

NE

MG

84 23 Construction sites

Purchase of Land and Development

Launch of the Sales Phase of

the Project

Completion of the Project

Delivery

Phase 1

Purchases a parcel of land

(on which it can build a

number of homes) or

subdivides the land into lots

to build multiple projects that

will be launched in phases.

Tenda targets areas where

customers make 3-6 times

the monthly minimum wage

(2nd range of the housing

program MCMV - My House,

My Life).

Participants in the land

development stage are:

financial institutions (projects

need to be approved and

contracted before the 2nd

phase), municipal planning

and zoning departments,

elected officials and

community interest groups.

Phase 2

Tenda’s marketing campaigns are

conducted internally, eliminating

the need for a sales stand.

Sales are conducted by an

internal force.

The remuneration of the internal

sales team is based on the

“repasse” (transfer of units to

financial institutions).

As a result of the tighter credit

policy and the new sales process,

sales velocity has no peaks during

the launch phase, but on the other

hand, sales expenses are lower,

and sales are steady. The model

is made to have between 7-10%

SoS per month, each and every

month, until the project is sold out

at least in 15 months.

Phase 4

• Collections for sold units

are in accordance with the

payment plan provided by

financial institutions under

the “associativo” MCMV

program).

• Tenda receives 100% of

the value of the unit during

the construction phase,

eliminating the risk of

delinquency on its balance

sheet.

Phase 3

• Aluminum molds are used in

construction to ensure a high quality

and cost efficiency.

• Shorter cycle given the use of

aluminum mold results in improved

visibility of cost trends.

• The overall process (from authorization

- to delivery), is planned to take

approximately 2 years.

• The loan starts out as a construction

loan based on a subsidized line of

credit and rolls over into a permanent

mortgage to the final buyer.

• The assurance of financing, which

allows the builder to focus on execution

and better schedule construction

workflow.

1 2 3 4

6 months 2 years

Tenda’s New Business Model Workflow

8

Financial Performance – André Bergstein, CFO

Overview of 1Q13 Results - Duilio Calciolari, CEO

• Beginning January 1, 2013, jointly controlled entities are consolidated by the equity method,

instead of the proportional method. As a result, the Company consolidates jointly controlled

entities in the consolidated financial statements

• The main impacts occurred in net revenue, costs, gross financial result and equity

Impact of New Industry Accounting Standards on

the Group’s Consolidated Financial Statements

10

Pro-forma 1Q13 (A) Effective Data 1Q13 (B) (A) – (B) = (C)1 (C) / (D)

Net Operating Revenues 718.927 668.591 (50.336) -8%

Operating Costs (542.187) (510.315) 31.872 5%

Gross Profit 176.740 158.276 (18.464) -3% Gross Margin 24,6% 23,7% -0,9% 0%

Operating Expenses (162.049) (161.643) 406 0%

Equity - 21.813 21.813 3%

Net Financial Result (53.006) (56.302) (3.296) 0%

Taxes (7.363) (7.641) (278) 0%

Minority shareholders (9.795) (9.976) (181) 0%

Net Loss (55.473) (55.473) -

Adjusted EBITDA ² 63.474 67.886 4.412

Adjusted EBITDA margin ² 9% 10% 1%

• Majority of legacy projects with lower margins, to be delivered in 2013, paving the way for

improved future profitability

1Q13 4Q12 Q/Q(%) 1Q12 Y/Y(%) Net revenues 668,591 815,071 -18% 842,996 -21%

Gross profit 158,276 221,360 -28% 180,973 -13%

Gross margin 23,7% 27,2% -349 bps 21,5% 221 bps

Adjusted EBITDA 67,888 32,842 107% 100,609 -33%

Adjusted EBITDA (ex-Tenda) 93,382 90,925 3% 111,965 -17%

Adjusted EBITDA Margin 10% 4,0% 612 bps 12% -178 bps

Adj, EBITDA Mg (ex-Tenda) 17,68% 14,64% 304 bps 20% -271 bps

Net Profit -55,473 - 98,875 -44% -31,515 76%

Consolidated Margins Have Not Yet Returned to

Normalized Levels

Gafisa Alphaville Gafisa + Alphaville Tenda Total 1Q13

Net Revenues (R$mm) 367,284 161,042 528,326 140,265 668,591

Revenues (% contribution) 55% 24% 79% 21% 100%

Gross Profit (R$mn) 87,767 80,132 167,899 -9,623 158,276

Gross Margin (%) 24% 50% 32% -7% 24%

Gross Profit (% contribution) 55% 51% 106% -6% 100% Adjusted EBITDA 44,972 48,410 93,382 -25,494 67,888

Adjusted EBITDA Margin 12% 30% 18% -18% 10%

EBITDA (% contribution) 66% 71% 138% -38% 100%

Contribution by Brand – 1Q13

Consolidated Key Financial Figures

11 Note: We adjust our EBITDA for expenses associated with stock option plans, as this is a non-cash expense. Net Revenues include 6% of sales from landbank that did not generate

margins

Improved Y-o-Y Gross Margin

FY 2013 Net Revenues Total Cost Gross Profit Gross Margin Financial

Gross Profit

without

Financial

Gross Margin

without Financial

Regional SP/RJ 365.285 (271.498) 93.787 25,7%

(17.925)

111.712 30,6%

Regional NM 2.000 (8.020) (6.020) -301,0%

(4.150)

(1.870) -93,5%

Total 367.285 (279.518) 87.767 23,9%

(22.075)

109.842 29,9%

Gafisa Segment – Gross Margin Breakdown Market Region

• Gross Profit negatively impacted by performance of projects in non-core markets

• Delivery of products outside of strategic markets to be substantially concluded in 2013

12

13

Revenues From Previous Launch Periods

1Q13 1Q12

Launch year PreSales %PreSales Revenues % PreSales %PreSales Revenues %

Gafisa 2013 Launches 11.696 12% - 0% 0 0% - 0% (55% stake 2012 Launches 131.985 131% 142.409 39% 67.863 21% 0 0% Total 2011 Launches (4.637) -5% 82.226 22% 81.243 26% 100.907 24% Revenues) 2010 Launches (17.620) -17% 103.843 28% 56.423 18% 116.108 28% ≤ 2010 Launches (20.309) -20% 38.807 11% 111.174 35% 190.649 45%

Land Bank 0 0 0% 0 0 12.593 3% Total Gafisa 101.116 100% 367.285 100% 316.702 100% 420.258 100% Alphaville 2013 Launches 50.924 46% 1.942 1% 0 0% - 0% (24% stake 2012 Launches 33.789 31% 73.993 46% 155.081 85% 3.950 3% Total 2011 Launches 16.918 15% 61.057 38% 16.062 9% 39.307 33% Revenues) 2010 Launches 3.806 3% 15.011 9% 3.213 2% 48.459 41% ≤ 2010 Launches 4.942 4% 9.039 6% 7.622 4% 25.863 22% Land Bank - 0 - 0% - 0 - 0% Total AUSA 110.380 100% 161.042 100% 181.978 100% 117.580 100% Tenda 2013 Launches 13.656 201% - 0% 0 0 - 0% (21% stake 2012 Launches - 0% 3 0% 0 0% - 0% Total 2011Launches (15.230) -224% 9.875 7% (30.635) 34% 15.365 5% Revenues) 2010 Launches 4.520 67% 66.010 47% (67.567) 75% 91.696 31%

≤ 2010 Launches 3.838 57% 64.378 46% 7.759 -9% 181.817 62%

Land Bank - 0 0% 0 4.968 2% Total Tenda 6.785 100% 140.265 100% (90.443) 100% 293.846 100% Consolidated 2013 Launches 76.276 35% 1.942 0% 0 0% - 0% 2012 Launches 165.774 76% 216.405 32% 222.944 55% 3.950 0% 2011 Launches (2.948) -1% 153.157 23% 66.670 16% 155.580 19% 2010 Launches (9.293) -4% 184.864 28% (7.931) -2% 256.263 31% ≤ 2010 Launches (11.528) -5% 112.224 17% 126.555 31% 398.329 48%

Land Bank - 0 - 0% - 0 17.561 2% Total Total Gafisa Group 218.281 100% 668.592 100% 408.237 100% 831.683 100%

Gafisa (A) Tenda (B) Alphaville (C) (A) + (B) + (C) (A) + (C)

Revenues to be recognized 1,951,419 361,914 996,580 3,309,913 2,947,999

Costs to be incurred (units sold) -1,273,873 -275,766 -470,771 -2,020,410 -1,744,644

Results to be Recognized 677,546 86,148 525,809 1,289,503 1,203,355

Backlog Margin 35% 24% 53% 39% 41%

Gafisa Group Consolidated Results to Be Recognized (REF) (R$ million)

1Q13 4Q12 Q/Q(%) 1Q12 Y/Y(%)

Results to be recognized 3,309,913 3,676,320 -10% 3,616,289 -8%

Costs to be incurred (units sold) -2,020,410 -2,226,575 -9% -2,338,561 -14%

Results to be Recognized 1,289,503 1,449,745 -11% 1,277,728 1%

Backlog Margin 39% 39% -48 bps 35% 363 bps

Backlog of Results

14

Results to Be Recognized (REF) by Segment (R$ million) 1Q13

• The consolidated margin for the quarter rose to 39% from 35% in 1Q12, due to contribution

of new projects, lower participation of Tenda’s legacy projects and increased stake of

Alphaville’s projects in the Group’s product mix

1Q13 4Q12 1Q12

Project financing (SFH) 791 705 485

Debentures - FGTS (Project Finance) 1,190 1,163 1,244

Debentures - Working Capital 585 573 704

Working Capital 1,146 1,199 1,138

Investor Obligations 216 324 364

Total Consolidated Debt + Obligations 3,929 4,240 3,936

Consolidated Cash and Cash Availabilities 1,444 1,568 847

Net Debt 2,485 2,396 3,089

Equity + Minority Shareholders 2,644 2,695 2,717

(Net debt + Obligations) / (Equity + Noncontrolling) 94% 89% 114%

Debt Profile

Project Finance Debt 1,981 2,144 1,729

Corporate Debt and Investor Obligations 1,948 2,096 2,207

Total Consolidated Debt + Obligations 3,929 4,240 3,936

Project Finance (% stake of total debt) 50% 51% 48%

Corporate Debt (% stake of total debt) 50% 49% 52%

Net Debt to Equity Decreased to 94%

from 115% in 1Q12 (R$ million)

• Comfort cash position of R$1.4 bi

• Consolidated cash burn of R$89

million in 1Q13 (R$20 million of

generation before the new

accounting method

• Net Debt / Equity stable in 94%

(96% in Mar/13 and 95% in Dec/12

before the new accounting method)

• Sequential increase in leverage

consistent with focus on

reinvestment and growth

• Project finance represented 50% of

total debt versus 48% a year ago

• 38% of short-term debt is

represented by project finance

15

Well Structured Debt Schedule and Profile

(R$million) Avg, Cost (% p,a,) Total Until

Mar /13

Until

Mar /14

Until

Mar /15

Until

Mar /16

After

Mar /16

Debentures - FGTS (A) TR + (9,54% - 10,09%) 1.189.918 241.925 247.993 350.000 150.000 200.000

Debentures - Working Capital (B) CDI + (1,50% - 1,95%) 584.890 140.698 283.659 150.000 6.913 3.620

Project Financing SFH – (C) TR + (8,30% - 11,50%) 790.881 200.618 373.449 160.448 40.684 15.682

Working Capital (D) CDI + (1,30% - 3,04%) 1.146.952 410.715 331.764 250.182 137.711 16.580

Total (A)+(B)+(C)+(D) = (E) 3.712.641 993.956 1.236.865 910.630 335.308 235.882

Investor Obligations (F) CDI + (0,235% - 0,82%) /

IGPM+7,25% 216.375 184.819 15.133 9.885 5.399 1.139

Total consolidated debt (G) 3.929.016 1.178.775 1.251.998 920.515 340.707 237.021

% Total (H) 9,33% 30% 32% 23% 9% 6%

Project Finance due to corresponding

period as % of total debt

50% 38% 50% 55% 56% 91%

Corporate Debt due to corresponding

period as % of total debt

50% 62% 50% 45% 44% 9%

• Gafisa has R$1.2 billion or 30% of total debt due in the short term. Of this total,

project finance accounts for 38%

16

Receivables + Inventory vs

Construction Obligations

Receivables Inventory at market

value Total

Construction obligations

Gafisa (A) 3.678.097 1.957.850 5.635.947 1.753.981

Alphaville (B) 1.746.194 636.258 2.382.452 698.304

Tenda (C) 1.243.188 915.036 2.158.224 463.716

Total (A) + (B) + (C) 6.667.479 3.509.143 10.176.622 2.916.003

R$ million

(R$000) Consolidated 1Q13 4Q12 Q-o-Q (%) 1Q12 Y-o-Y (%)

Receivables from developments – LT (off BS) 3.435.302 3.815.589 -10% 3.753.284 -8%

Receivables from PoC – ST (on balance sheet) 2.492.119 2.493.170 0% 3.002.163 -17%

Receivables from PoC – LT (on balance sheet) 740.058 820.774 -10% 1.024.027 -28%

Total Gafisa Group 6.667.479 7.129.533 -6% 7.779.474 -14%

17

Receivables

Outlook

Launches Guidance – 2013E

Guidance (2013E)

Actual numbers 1Q13A

Consollidated Launches R$2,7 – R$3,3 bi 307mn

Breadown by Brand

Launches Gafisa R$1,15 – R$1,35 bi 83 mn

Launches Alphaville R$1,3 – R$1,5 bi 111 mn

Launches Tenda R$250 – R$450 mn 114 mn

Guidance (2013E)

Actual number 1Q13A

Consolidated stable 94%

Guidance (2013)

Actual numbers 1Q13A

Consolidated (# units) 13,500 – 17,500 1,300 Delivery by Brand # Gafisa Delivery 3,500 – 5,000 86 # Alphaville Delivery 3,500 – 5,000 419 # Tenda Delivery 6,500 – 7,000 795

• Given the focus for cash

generation in 2012,

Gafisa enters 2013 with a

comfortable liquidity position

and capital structure, having

restructured debt and

diversified funding sources

and cash facilities

Guidance (2013E)

Actual number 1Q13A

Consolidated 12% - 14% 10%

Launch Guidance – 2013 Estimates

Guidance Leverage (2013E)

Guidance EBITDA Margin (2013E)

Delivery Estimates 2013E

18