3q11 disclosure and results

1

Earnings Release | Conference Call 3Q11November 11th, 2011

2

Summary

Ricardo Ribeiro

COO

Roberto Senna

CEO

Carlos Wollenweber

CFO | IR

3Q11 Highlights

Operational Highlights

Financial Highlights

3Q11 9M11

Launched PSV% Direcional

R$ million 377 1,019

Contracted PSV% Direcional

R$ million 430 863

Sales Over Supply % PSV 36.7% 50.4%

Net Revenues R$ million 298 776

Adjusted Net Income R$ million 59 151

Adjusted Net Margin % 20% 19%

Highlights

31. Considering the acquisition of 60% of the residential towers of Parque Ponta Negra project in 2Q11;

2. Adjusted by non-cash expenses (Stock-Options Program).

1

1

4

On September 1st, Direcional signed an agreement with the State of Amazonas and Caixa Economica Federal for the

construction of the 2nd phase of Meu Orgulho project in Manaus, with PSV of R$ 313.4 million.

# Units

Segment

Housing PSV

Infrastructure PSV

3,511

MCMV 1st Layer

R$ 149.2 million

R$ 41.4 million

Total PSV R$ 190.6 million

Location Manaus - AM

Residencial Meu Orgulho 1st Phase

Launch 2Q10

# Units

Segment

Housing PSV

Infrastructure PSV

5,384

MCMV 1st Layer

R$ 272.6 million

R$ 40.7 million

Total PSV R$ 313.4 million

Location Manaus - AM

Residencial Meu Orgulho 2nd Phase

Launch 3Q11

Agreement with CEF to develop the 2nd phase of MeuOrgulho Project

1st Phase MCMV

5

The most relevant player in the very low income segment in Brazil

PAR 2nd Phase MCMV RET1+ + +

# of projects: 5

# of Units: 3,602

Total PSV: R$ 153.7 million

Previous to MCMV

Program

# of projects: 3

# of Units: 7,391

Total PSV: R$ 380.3 million

# of projects: 2

# of Units: 6,724

Total PSV: R$ 392.5 million

# of projects: 5

# of Units: 2,540

Total PSV: R$ 149.2 million

Units under R$ 75.0

thousand

RET 1% Projects:

# of projects: 5

# of Units: .2,540

PSV: R$ 149.2 million

Very Low Income Projects:

# of projects: 10

# of Units: .17,717

Total PSV: R$ 926.6 million

Large Scale Projects + Industrialized construction process

Petrpolis - AM Meu Orgulho 1st Phase Meu Orgulho 2nd Phase Total Ville Maca - RJ

Direcional as Contractor Direcional as Developer+

6

Operational Highlights

Launches

Sales

Land Bank

Inventory

Ricardo Ribeiro Operational Highlights

7

Launches

+133%

CAGR 07-10: 82%+56%

Launched PSV

(R$ million)

Launched PSV Track Record

(R$ million)

162 63

461 575

313

191

313

131

3Q10 3Q11 9M10 9M11

Development MCMV 1st Layer Project Acquisition

1,019

652

377

162

176

710 783

1,067 888

131

2007 2008 2009 2010 9M11

Development Project Acquisition

1,019

Total

(R$'000)

% Direcional

(R$'000)

1 Portal Vistas do Horizonte September Belo Horizonte - MG 95,878 47,939 376 1,172 Medium

2 Total Ville Maca - 3rd Phase - RET 1 September Maca - RJ 31,010 15,505 402 1,145 Low-Income

3 Residencial Meu Orgulho - 2nd Phase September Manaus - AM 313,395 313,395 5,384 8,895 MCMV 1 st Layer

440,283 376,839 6,162 11,212

# of Units

Launched

Total Units

(All Phases)Segment

Total

PSV

3Q11 Projects Date City - State

3Q103Q11

9M109M11

60.1%83.2%

58.6% 67.7%

25.7%34.8%

5.6%

14.2% 16.8% 6.7%

26.7%

North Midwest Southeast

3Q103Q11

9M109M11

83.2%

29.2% 35.3%

95.6%

4.1%

46.3%22.4%

4.4%12.7%

21.2%

25.4%

3.2%

5.4%11.5%

MCMV 1st Layer Low-Income Medium Upper-Middle Commercial

Launches Breakdown

Launches

(Segment Breakdown % PSV)

Launches

(Geographic Breakdown - % PSV)

8

Meu Orgulho 2nd Phase - AM

PSV R$ 313.4 Million

Portal Vistas do Horizonte - MG

PSV R$ 47.9 Million

Total Ville Maca 3rd Phase - RJ

PSV R$ 15.5 Million

3Q103Q11

9M109M11

35.3%

91.9%

64.3% 68.9%

39.4%

2.5%

22.1% 11.0%

25.3%5.6%

13.6%20.1%

North Midwest Southeast

3Q103Q11

9M109M11

72.8%

30.2% 40.5%

49.2%

11.2%

39.4% 19.8%

24.7%

10.7%

16.2%27.9%

26.1%4.4%

14.2% 7.1%

0.8%

4.8%

MCMV 1st Layer Low-Income Medium Upper-Middle Commercial

143 117

440 461 313

191 313

89

3Q10 3Q11 9M10 9M11

Development MCMV 1st Layer Project Acquisition

143

430

631

863

127

441 661

1,037 774

89

2007 2008 2009 2010 9M11

Development Project Acquisition

863

9

Sales

CAGR 07-10: 101%

+201

+37%

Contracted PSV

(R$ million)

Contracted PSV Track Record

(R$ million)

Sales

(Geographic Breakdown - % PSV)

Sales

(Segment Breakdown - % PSV)

Units Launched in 2Q11 1.732

Contracted Units 700

Contracted in 2Q11 253

Contracted in 3Q11 368

Contracted on October 79

Units to be sold* 1.032

Sales Status: RET1

38.3%

22.1%

36.7%

20.8%

27.6%

18.5%16.0%

3Q10 4Q10 1Q11 2Q11 3Q11

With MCMV 1st Layer project Ex MCMV 1st Layer project

10

Sales Over Supply

(Total PSV)

Sales Speed (%)

(Units)

Sales Status of RET1 Projects (launched in the 2Q11)

Impacted by the lower

launched PSV in the

3Q11

Sales Speed

17%

87%

48%

20%

90%

27%

4%

21%

20%

14%

1%

9%

9% 2%3Q10

4Q10

1Q11

2Q11

3Q11

3M 6M 9M 12M 15M

40%

78%

93%

70%

90%

40%

60%Contracted Units

Units to be sold*

* RET1 sales are subject to the mortgage facility approval by CEF

11

Concluded Projects 9M11

DF 29%AM

26%

RO 22%

ES 12%

MG 8%

SP 3%

Concluded Projects(Geographic Breakdown % PSV)1 Equilibrium Manaus - AM 2Q11 43,561 136

2 guas do Madeira Porto Velho - RO 2Q11 40,973 4263 Grand Prix Manaus - AM 2Q11 36,983 1924 Lake View Resort Braslia - DF 2Q11 87,812 2325 Garden Club - Fase 01 Porto Velho - RO 2Q11 27,515 3136 Dream Park Serra - ES 2Q11 35,704 2827 Gran Paradiso Belo Horizonte - MG 3Q11 13,621 1288 Villagio Santa Mnica Belo Horizonte - MG 3Q11 10,219 1209 Vernissage Campinas - SP 3Q11 8,448 58

Total 304,835 1,887

Projects City - StatePSV % Direcional

(R$ '000)UnitsQuarter

Low-Income, 52.4%

Commercial, 4.8% Medium,

36.0%

Upper-Middle,

6.8%

6,757 6,991 581

229

575

4Q10 ACQUIRED LANDSON 9M11

REVIEW OFASSUMPTIONS

LAUNCHES IN9M11

9M1112

Land Bank

59.2% large scale projects (more than 1,000 units);

53.5% in the North and Midwest regions;

52.4% projects in the low-income segment;

45.6% are eligible for the MCMV program.

Geographic Distribution

(PSV % Direcional)

MINHA CASA, MINHA VIDA

49.9 thousand units are eligible for the

program, equal to 73.4% of total land bank

Segment Breakdown

(PSV)

ES1.5%

AM13.7%

MG37.6%

RO3.9%

SP6.5%

PA13.4%

DF22.5%

RJ0.9%

Land Bank Evolution 9M11

(PSV - R$ million)

271

286

536

1,050

2,230

2,003

7,984

12,201

9,528

14%

7%

9%

% in Inventory23%

Concluded Projects

2008

2009

2010

2011

Launched Inventory

53

63

95

220

275

886

783

1,067

1,019

7%

12%

21%

% in Inventory27%

Concluded Projects

2008

2009

2010

2011

Launched Inventory

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Inventory

Inventory(Units)

Inventory PSV(R$ million)

Only R$ 53 million (or 271 units) are concluded inventory;

87% of units under construction have already been sold;

Reduction of 7% of the total inventory in the 3Q11.

PSV (R$'000) % Direcional Units in Inventory

Total Inventory 705,493 4,373

14

Financial Highlights

Financial Performance

Liquidity Ratios

Deferred Results

DIRR3 Stock Analysis

Carlos Wollenweber Financial Highlights

67 97 179 242

32.0% 32.6% 34.5%31.2%

3Q10 3Q11 9M10 9M11

Adjusted Gross Margin

211 298

519

776

3Q10 3Q11 9M10 9M11

63.4 102.3 263.2 377.6 781.9 776.3

24.0% 21.1%24.5% 22.5% 22.6%

19.4%

2006 2007 2008 2009 2010 9M11

Adjusted Net Margin (%)

+41%

+50%

15

Financial Highlights

1 - Net Margin: Adjusted for non-cash expenses (Stock-Options Program).

2 - Gross Margin Ex-SFH: excluding interest expenses

Net Revenues

(R$ million)

CAGR 06-10: 87,4%

Net Revenues Track Record

(R$ million)

44%

+35%

Gross Profit and Gross Margin

(R$ million)

47 59

126 151

22.4% 20.0%

24.2%

19.4%

3Q10 3Q11 9M10 9M11