1

Earnings Release | Conference Call – 4Q14

March 17th, 2015

2

Agenda

Ricardo Ribeiro

Vice President

Fernando Ramos

CEO and IR Officer

Operational Highlights

Financial Highlights

3

Highlights

Cash flow generation attained a record amount of R$ 158 million in 2014.

Increase of 53% in services revenue (MCMV Level 1), totaling R$ 1,3 million in 2014 which accounted for 67% of total revenue recognized during the period.

In 2014, mortgage transfers in the development segment totaled R$ 503 million, representing a growth of 40% in comparison with 2013.

By the end of 4Q14, the company's leverage ratio (net debt over equity) represents only 16.3%, one of the lowest among peers listed on the BM&F Bovespa

At the end of 4Q14, sales revenue to be recognized totaled R$ 3.4 billion, accounting for approximately 21 months of revenue Partnership with Red Sea.

Share buyback program and dividends in accordance to the approved policy.

4

Launches

Launches

(PSV - R$ million)

730

456

523

15472

+14%

-36%

2014

1,654

1,198

2013

2,565

2,041

4Q14

348

194

3Q14

304

232

4Q13

919

189

MCMV Level 1

Development PSV launched in 4Q14 totaled R$ 348 million, attaining R$ 1.7 billion in 2014

The Company launched two projects under the MCMV Level 1 in 4Q14, totaling a PSV of R$ 194 million

72% of the launches were related to MCMV level 1 projects

74% of the development launches were in the Southeast Region

Midwest 74%

North 14%

Southeast 12%

12%

Upper-Middle 38%

Medium

24%

Low-Income

Commercial

26%

Launches 2014 - Development (Economic Segmentation – % PSV)

Launches 2014 - Development (Geographic Segmentation - PSV%)

5

Sales

Contracted Net Sales

(PSV - R$ million)

730

437

610

13763

+12%

-38%

2014

1,634

1,198

2013

2,652

2,041

4Q14

331

194

3Q14

296

232

4Q13

937

207

MCMV Level 1

Development

Southeast

25%

North 56%

Midwest 19%

Geographic Segmentation of Cancellations – 2014 (% PSV)

Cancellations and Cancellation Resale

(Units)

633617632613 444455525496

77%70%74%

83%81%

70%64%

75%61%

2014

1,920 2,495

4Q14 3Q14 2Q14 1Q14

Resale in the Period

% Resale (until 4Q14)

Resale (until 4Q14)

Cancellations

Contracted Net Sales – Development

(PSV - R$ million)

769841

227143

282

+58%

-9%

2014 2013 4Q14 3Q14 4Q13

6

Inventory

Inventory Track Record

(PSV - R$ million)

Completed

26%

<2012

19%

2012 21%

2013

6% 2014

28%

Inventory by Launch Period

(% PSV)

4%

+16,7%

846

4Q14

629

218

3Q14

813

630

183

4Q13

725

571

154

Under Construction

Finished Units

Southeast 50%

Midwest

11%

North 38%

Inventory by Region

(% PSV)

7

Deliveries

Commercial 21%

RET

7%

Medium

50%

Low-Income

22%

2014 Deliveries - Development (Geographic and Economic Segmentation -PSV%)

Southeast

34%

Midwest

11%

North 55%

4Q14

LTM

1,751

887

864

3Q14

LTM

1,526

721

805

2Q14

LTM

1,806

1,046

760

1Q14

LTM

1,676

1,001

674

4Q13

LTM

1,237

839

398

3Q13

LTM

1,020

905

115

2Q13

LTM

1,029

713

316

Deliveries – Track Record

(Over the past 12 months: R$ million)

Development

MCMV Level 1

Deliveries

(PSV - R$ million)

2014

1,751

887

864

2013

1,237

839

398

4Q14

737

320

417

3Q14

224

155 69

4Q13

511

153

358

+230%

+42%

Development

MCMV Level 1 Delivery attaining a PSV of R 1.8 billion and 18,554 units.

Record deliveries in the MCMV Level 1 (+ 117% compared to 2013)

In the development segment deliveries were 6% above the figure presented in 2013

8

Fernando Ramos

CEO and IR Officer

Financial Highlights

9

Results

1. Adjustment excluding interest on financing for construction;

354 404

836213167

950

627

238

+20%

+27%

+7%

2014

1,908

1,281

2013

1,786

4Q14

571

3Q14

474

120

4Q13

451

Gross Operating Revenue

(R$ million)

Revenues from Services

Revenues from Real Estate Sales

Adjusted¹ Gross Profit and Gross Margin

(R$ million)

112 120

404 427

99

51

+7%

+4%

+20%

2014

471

45

25.7%

2013

454

26.0%

4Q14

132

12

23.9%

3Q14

123

11

26.6%

4Q13

110

11

25.1%

Adjusted Gross Margin¹

Interest capitalized in costs

Gross Profit

10

Cash Flow Generation

Cash Flow Generation (Cash Burn) ¹

(R$ million)

+106.6%

2014

158

2013

76

2012

-183

2011

-176

2010

-283

4Q14

LTM

158

3Q14

LTM

250

2Q14

LTM

205

1Q14

LTM

189

4Q13

LTM

76

3Q13

LTM

26

2Q13

LTM

-88

1Q13

LTM

-138

4Q12

LTM

-183

Cash Flow Generation (Cash Burn)¹ - Track Record

(Over the past 12 months : R$ million)

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

457836

269

67%

47%

31%23%

14%

2014

1,281

2013 2012 2011 2010

117

Revenue from Service

% of Gross Revenue

Revenue from Services

(R$ million)

Financing Pass-through (“Repasses”)

((R$ million- Cash Reception Criterion)

56

608

+40%

-4%

-5%

-10%

2014

503

105

2013

633

360

273

4Q14

159

145

14

3Q14 4Q13

178

122 138 29

167

"Associativo"

SFH

11

Capital Structure

Capital Structure

(R$ million)

343

Net Debt

23% 22% 16%

Net Debt/Equity

348 283 CRI

11%

Working Capital

1%

SFH 62%

FINAME and Leasing

5%

Debentures 21%

2014

665

948

2013

543

890

2012

450

793

Cash

Debt

Gross Debt Breakdown (% of Debt)

Net Debt

Without SFH

-301

Net Debt

283

Cash and

Cash

Equivalent

665

Debt

948

SFH

584

364

Debt

(R$ million)

2014 Profits Destination

Earnings Per Share | Dividend per Share

(R$)

12

1.481.34

1.46

0.410.370.36

30.8%

25.2%24.9%

2014 2013 2012

Payout² Dividends per Share² Earnings per Share

Share Buyback: in March, the Board of Directors approved the share buyback program limited to the maximum purchase of 7,034,205 and maximum period of 365 days, whose objective is the subsequent sale or cancellation.

In compliance with the dividend policy approved by the Board of Directors, the amount to be proposed for approval at the Ordinary General Meeting (AGO) is R$ 63.2 million. This amount corresponds to 40% of the Company's generation of cash1 in the period.

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

2 - 2014 Dividends are conditioned to referendum in Assembly

Dividend Proposal Policy (R$ million) 2014

Inicial Net Debt 347.7

Final Net Debt 283.2

Change in Net Debt 64.6

Paid Dividends 93.3

Adjusted Cash Flow 157.9

Dividends Proposed - 40% of Cash Flow 40%

Dividends (Dividend Policy) 63.2

( - ) Interim dividends (paid in 11/2014) 36.3

Dividends to be paid ¹ 26.9

Dividends to be paid (Statutory) 15.2

Complementary Dividends Remaining 11.7

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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/ir

ir@direcional.com.br

(55 31) 3214-6200

(55 31) 3214-6450

Fernando José Mancio Ramos

CFO | IR Officer