1

April 2006

2

Evolution of a World-Class company

Gafisa: A Leading Homebuilder

1954

1997

2004

2005

2006

► Gafisa is founded

► GP invests, professionalization of company begins

► Company becomes capital constrained, external shareholder event occurs

► Capital increase from EI (Sam Zell), a strategic investor► Turnaround begins

► IPO in February 2006: Professionalization continues ► Capitalize on growth opportunities

Gafisa is well positioned for the Future

3

Gafisa’s Strategy

Create the leading residential development company in Brazil based upon sales, profitability and quality

Strong revenue growth

Focus on high return

opportunities

Maintain debt policy of

40% - 60% net debt / equity

Continued geographic expansion

Our Strategy

Maintain land bank of

2-3 years of future sales

4

Premier Growth Opportunity

Professional Managementand

Established Organization

Industry Leadership and Strong Brand Recognition

GeographicDiversification

World-class Shareholdersand the Highest Standards of Corporate Governance

5

Housing Sector Overview

6

Brazil’s real estate market presents large and sustainable demand…

Robust Housing Growth

► Largest economy in South America

► Politically stable and fiscally conservative

► Strong economic fundamentals

– Unemployment rate: declining

– Interest rates: declining

– Country risk: lowest level in 8 years

Favorable Housing Market TrendsBrazil’s Economic Trends

► Attractive demographics: young and growing

population

► Strong pent-up demand:

– Housing deficit currently grows at a pace

of 300,000 units per year

► New, improving legal framework

► Increasing mortgage availability

► Highly fragmented market

…which is expected to continue significantly exceeding supply

Source: Central Bank, Ipeadata and SECOVI

Interest RatesC

ount

ry R

isk

0

300

600

900

1,200

1,500

Jan-03 Jan-04 Jan-05 Jan-060%

5%

10%

15%

20%

25%

30%

Country Risk Interest Rates

7

Increasing credit availability and new regulation will fuel the housing sector

Increasing Mortgage Availability

Recent Trends Available Credit

► New regulation

– Banks required to increase mortgage lending

► Ability to repossess in case of default

► Developing secondary mortgage market

– True sale and non-recourse structures

– Asset backed securities:

– R$0.4 bn in 2004

– R$2.0 bn in 2005

► Increasing mortgage affordability

Credit still represents a small percentage of GDP when compared to other countries

Source: Central Bank, Ipeadata and SECOVINote:1 Based on real estimated GDP growth

1 1

1.8 2.23.2

6.0

18.0

0.1% 0.1%0.2%

0.8%

0.3%

2002 2003 2004 2005E 2006E

Volume (R$ billion) % of GDP

8

Highly Fragmented Market

Market Share in São Paulo (2005)

Well capitalized companies will benefitfrom increasing demand

Market Share in Rio de Janeiro (2005)

Source: EMBRAESP and SECOVI

Others80%

5%

Cyrela Brazil Realty8%

Rossi Residencial2%

Company S.A.3%

Tecnisa2%

Source: ADEMI

Others42%

CHL9%

Carmo Calçada11%

Agenco13%

RJZ Cyrela12%

13%

Units (#)

Launchings (R$ bi)

2005 04-05Growth

33,748

9.0 19%

24% Units (#)

Launchings (R$ bi)

2005 04-05Growth

8,832

3.0 2%

23%

Gafisa´s strong brand and market positioning are a competitive advantage against the many family-owned and non-professional competitors

9

Investment Highlights

10

Led by GP and EI, Gafisa is the only homebuilding company with an institutional shareholder base …

World-Class Shareholders and Corporate Governance

… and commitment to superior corporate governance standards

27.7%23.1%

Free Float

49.2%

Post-IPO Shareholder Structure 1

Selling Shareholder

► Proven track record in the Brazilian capital markets

– Submarino, ALL, among others

► A leading investor in real estate companies outside of the U.S.

► Portfolio includes Homex, Mexico’s leading homebuilder

► Founded by Sam Zell

► Novo Mercado listing

► 100% tag along rights

► 2 independent board

members

► US GAAP

Superior Governance Standards

Note:1 Excludes treasury stocks

11

Gafisa’s product diversification is a key differentiating strategy…

Diverse Product Mix

Luxury Developments

Middle-High Income

Buildings

Affordable Entry-Level

Housing

250 90-180 45-60

67%

Size(sq.m)

Average Price per

sq.m

% of 2005 Contracted

Sales 15%10%

> R$3,600+ R$2,000-3,600 R$1,200–2,000

Notes:1 Gafisa has commercial buildings which accounted for the remaining 4% of the 2005 contracted sales

Land Subdivision

250-1,500

14%

R$150-800

31%2005 Project Margin 28%37% 44%

12

Geographic Diversification

Gafisa’s Location

Gafisa´s core markets (SP / RJ)

RJ and SP

► Leading position► Established presence► Large and profitable

market

82%

Other Regions

► Few large and well capitalized competitors

► Diversification► Strong growth prospects► 14 cities in Brazil with

more than 1.0 mm people

18%

Markets Characteristics% of 2005

Contracted Sales

… which is complemented by its geographic diversification (Gafisa is the most diversified homebuilder in Brazil)

13

A superior organizational structure and professional management enable strong growth, maximizes quality …

Professional Management and Superior Organizational Structure

► Only leading Brazilian developer with a professional management team

► In-depth industry knowledge

– Management, on average, with more than 14 years of experience in the company

► Senior management with proven track record in diverse industries

► Well established internship program

– 4 out of the 7 directors were part of this program

► High employee retention levels

Superior Organizational StructureProfessional Management

► Results-driven culture

► Management is aligned with shareholders

– Performance based stock option program

► Strict criteria for project approvals through Investment Committee and Board approval process

► Standardized procedures (efficient execution and control)

► Modern management system and tools

… and make Gafisa a scalable business platform

14

An efficient business model, based on three main pillars…

► 50-year track record

► Builds for some of Gafisa´smain competitors

► ISO 9002

► Standardized construction techniques

► Innovative materials and techniques

Low-Cost Operations

Efficient Business Model

… aiming at maximizing ROE

► High sales velocity: 70% of units sold before construction

► Securitize client receivables to optimize working capital

High Asset Turnover

► Proven ability to source land

► Acquire land mostly via swap

– Minimize cash outflow

– Minimize permitting risk

– Lower capital cost

– Alignment with landowner

– Tax deferments

► Maintain full control

Land Acquisition Strategy

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A long track record of leadership in the sector …

#2

2001R$249 mm2

#3

2002R$280 mm2

#1

2003R$173 mm2

#12

2004R$86 mm2

Leadership and Strong Brand Recognition

… made Gafisa’s brand one of the best-known in the Brazilian real estate industry

Market Share – São Paulo 1

Source: EMBRAESPNotes:1 Market share based on total sales volume of 100% of the developments launched2 Total sales value of developments launched (Gafisa’s proportional share)

#2

2005R$340 mm2

Market Share – Rio de Janeiro 1

#1

2001R$140 mm2

2002

#1

R$108 mm2

2003

#1

R$186 mm2

2004

#4

R$51 mm2

2005

#1

R$186 mm2

Source: ADEMINotes:1 Market share based on total sales volume of 100% of the developments launched2 Total sales value of developments launched (Gafisa’s proportional share)

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Our land bank policy is to maintain 2 to 3 years of future sales

Potential Units by Income Segment

Strategic Land Bank

São Paulo

Rio deJaneiro

OtherCities

Total

%

Land Bank (December / 2005)

1,009

711

169

1,889

Potential Contracted

Sales(R$ mm)

79%

62%

100%

81%

%acquiredby swapHigh Middle Low

500

316

70

886

15%

1,421

2,586

333

4,610

78%

63

348

-

411

7%

Lorian - SP

Barra da Tijuca - RJ

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Financial and Operational Performance

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► Market research

► Project analysis

► Sales strategy

► Internal approvals

► Permitting

► Market research

► Project analysis

► Sales strategy

► Internal approvals

► Permitting

► Sales: 70% of units

► Secure client financing

► Sales: 70% of units

► Secure client financing

► Sales: 30% of units

► Secure construction financing

► Efficient construction

► Sales: 30% of units

► Secure construction financing

► Efficient construction

► Securitization

► Bank mortgage (customer)

► Securitization

► Bank mortgage (customer)

Development Process

LandPurchase Launch Construction Delivery

- 6th to 0 month 0 to 12th month 12th to 36th month After 36th month

19

The nature of the business requires funding for the first year of development…

LandPurchase Launching Construction Deliver

Typical Project Cash Flow

Notes:1 Construction financing provided with funds from SFH2 Middle-income with swap agreement project

Cumulative Cash Flow to Equity 1, 2

… followed by significant cash in-flows

► Beginning of construction

► Project launching

► Securitization of remaining receivables

► End of construction► Customer gets

commercial mortgage financing

► Construction Finance (SFH) repayment

Expected ROIC = 35%

-6 – 0months

0 – 12months

12 – 36months

36 +months

Maximum exposure: 10% to

12% of sales contracted

(15)

(5)

5

15R

$ m

illion

20

Strong turnaround in 2005 …

Launchings and Contracted Sales

Launchings (R$ mm) Contracted Sales (R$ mm)

389 388 377

207

652

682

313

485

606

487

2001 2002 2003 2004 2005

Gafisa Partner

293333 325

254

450

349

474 478

375

528

2001 2002 2003 2004 2005

Gafisa Partner

+49%

+92%

Average 01-04 = 302Average 01-04 = 340

21

…and accelerating growth

7786

66

97

64 6553

7282 85

79

204

Quarterly Results

Contracted Sales (R$ mm)

1Q04 1Q05

+ 29% + 31%+ 49%

+ 18

2%

1Q03 2Q04 2Q052Q03 3Q04 3Q053Q03 4Q04 4Q054Q03

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Historically, almost 90% of a year’s earnings are based on previous’ years launches

Earnings recognition per year

11% 48% 42%

Accumulated earnings recognized (a x b) 11% 59% 100%

Year 1 Year 2 Year 3

High Visibility Earnings

Earnings “lag” provides strong predictability

Earnings are recognized under the percentage of completion method

Accumulated Sales (a)

Percentage of completion (b)

70% 90% 100%

15% 65% 100%

23

Strong 2005 sales will positively impact future earnings

26

64

84

66 65

13.4%

18.9% 19.1%

14.1% 13.2%

2001 2002 2003 2004 2005

EBITDA EBITDA Margin

EBITDA and Net Income

EBITDA (R$ mm) and EBITDA Margin (%) Net Income (R$ mm) and Net Income Margin (%)

15

42

51

20

27

7.9%

12.4% 11.6%

4.2%5.6%

2001 2002 2003 2004 2005

Net Income Net Income Margin

24

Dec/2004 Dec/2005 38%40%

36%

28%

39%

2001 2002 2003 2004 2005

Future Earnings

Earnings to be Recognized (R$ mm) Nominal Gross Project Margin (%)

Sales to be Recognized

Costs of Units Soldto be Recognized 1

Profit to be Recognized

Nominal Gross Project Margin

436

(267)

169

39%

437

123

28%

Note:1 Includes only land and construction costs

(314)

… with margins restored to near 40%

Currently, Gafisa has approximately R$169 million of earnings to be recognized (37% increased compared to 2004)…

25

Capitalization

Short Term DebtLong Term Debt Total Debt

Cash and Cash Equivalents Net Debt (Net Cash)Shareholder’s Equity

Total Capitalization

Net Debt / Equity

(R$ million) Dec/05

54263317

134183300

617

61%

As of December 31, 2005

AdjustmentsPro FormaPost IPO

(10)(18)(27)

456 (483)483

456

45245289

590(300)783

1,073

(38)%

Launching of new developmentAcquisition of landWorking capitalDebt amortizationInvestment in existing operationsTotal

Use of Proceeds (%)

50%20%20%5%5%

100%

Notes:1 Capital increase from EI Fund II Brazil, LLC of R$6.2 million

Pro Forma Capitalization 1

26

Premier Growth Opportunity

Professional Managementand

Established Organization

Industry Leadership and Strong Brand Recognition

GeographicDiversification

World-class Shareholdersand the Highest Standards of Corporate Governance