1Q101Q102Q102Q10May 13, 20101Q101Q10

August 10, 2010 2Q102Q10

2Q10 Operating Highlightsp g g g

Operating HighlightsOperating Highlights

“Mi h C Mi h Vid ” P “Minha Casa, Minha Vida” Program Launches SalesSales Land Bank Inventory

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“Minha Casa, Minha Vida” Program, g

Housing loans contracted by CEF in 1H10 totaled R$ 34 billion. The figure is 95% above the same period of 2009and 46% higher than the entire year of 2008and 46% higher than the entire year of 2008.

Government expects to finalize all the details of the 2nd phase of the MCMV Program, including the new pricecap for the units, by the end of August 2010. The Federal Government had already previously announced thep , y g y p yintention to allocate an additional R$ 72 billion in subsidies to build 2 million housing units by 2014:

MCMV – 1st PHASE MCMV – 2nd PHASE

66‐‐10 mw10 mw10%10%66‐‐10 mw10 mw

00‐‐3 mw3 mw60%60%

33‐‐6 mw6 mw30%30%

10%10%00‐‐3 mw3 mw40%40%

33‐‐6 mw6 mw

20%20%

Subsidies: R$ 72 billion (up to 2014)Subsidies: R$ 34 billion

40%40%

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Units: 2 millionUnits: 1 million

“Meu Orgulho Project”Meu Orgulho Project In June/2010 we entered into an agreement with CEF and the State Government of Amazonas, aimed at theimplementation of a housing project within the "Programa Minha Casa Minha Vida” for families with monthlyimplementation of a housing project within the Programa Minha Casa, Minha Vida , for families with monthlyincome of up to three minimum wages, in the city of Manaus, Amazonas State The agreement provides for the construction of 3,511 housing units, with a total amount of R$ 190,6 million. Theland has a total building potential of 8,895 units. The construction of additional units is subject to obtainingapprovals from CEF.

“Meu Orgulho Project”

Segment ResidentialMCMV – 0‐3 M.W R$ 149.2 MN

Total PSV R$ 190.6 MNLocation Manaus ‐ AM

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# Units

Segment Residential

Infrastructure3,511

MCMV  0 3 M.W R$ 149.2 MN

R$ 41.4 MN

LaunchesLaunches 4,117 units were launched in 2Q10, totaling a PSV of R$ 356.3 million (R$ 349.0 million % Direcional) Launches were concentrated in popular projects (92.8% of units), in the North and Mid-west regions

Launches - % Direcional (R$ MN)

+41%+44%

p p p j ( % ), g

% Direcional+41%

248 349 490490

G hi Di iL h b S t

2Q09 2Q10 1H09 1H10

Units Geographic Dispersion

+35%+34%

Launches by Segment

14.7% 17.0%12.7% 9.6% 0.5%7.5%

28.8%8.2% 6.3%4.5% 7.2% 3.4% 6.0%

3,056 4,117

4,022 5,383 87.3% 85.3% 90.4% 82.5%

49.2% 85.3% 37.3% 65.2%

38.1% 53.0%

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2Q09 2Q10 1H09 1H10 2Q09 2Q10 1H09 1H10

Southeast Mid‐west North

2Q09 2Q10 1H09 1H10

Upper Middle Medium Popular 0 ‐ 3 MW

SalesSales In 2Q10 we sold 4,629 units with total PSV of R$ 361.4 million (R$ 323.8 million % Direcional) Sales Over Total Supply of 56.8% in the 2Q10.

Contracted PSV - % Direcional (R$ MN)Sales Over Total Supply of 56.8% in the 2Q10.

+70%+74%

% Direcional+70%

190 324 281488

2Q09 2Q10 1H09 1H10

Sales by Segment Geographic Dispersion Sales Over Total Supply# of Units

51.5% 56.8%17.4%

9.0% 5.4% 13.0% 8.2%4.5% 1.3% 5.1% 2.2%

1.0% 7.2% 1.0% 13.3%12.0% 5.0% 13.0% 5.6%

41.8%

20.6%24.4%

58.8% 75.9%45.8% 59.1%

27.8%36.1%

30.5%

87.0% 87.8% 86.0% 81.1%

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2Q09 3Q09 4Q09 1Q10 2Q102Q09 2Q10 1H09 1H10Upper middle Medium Popular 0‐3 MW

2Q09 2Q10 1H09 1H10Southeast Mid‐west North

Land BankLand Bank Land Bank of R$ 8.1 billion (R$ 5.7 billion % Direcional) with 65,158 units Land Bank average cost of 8.1% of estimated PSV and 73.1% acquired through swapLand Bank average cost of 8.1% of estimated PSV and 73.1% acquired through swap

Land Bank Composition Large Scale Projects

AM PA Project Status Total ofit

Units to bel h d

PSV (R$ MN) to b l h d

RO

MG

RO

PA

DF

j S units launched be launched

Manaus Total Ville AM Under Construction 3,576 2,136 249.1 Total Ville Bella Cittá PA Under Construction 4,049 3,177 357.3Total Ville Marabá PA Under Construction 5 712 5 188 562 9

93% of PSVTotal Ville Marabá PA Under Construction 5,712 5,188 562.9 Allegro Residencial Club AM Under Construction 1,648 704 111.6 Setor Total Ville DF Under Construction 5,096 2,855 266.4 Total Ville Porto Velho RO Under Construction 2,428 1,938 175.8 Dream Park ES Under Construction 1,034 752 126.8

PSV Breakdown per SegmentDream Park ES Under Construction 1,034 752 126.8Eliza Miranda AM Under Construction 2,112 128 19.7Cachoeiras do Madeira RO Under Construction 1,278 426 75.4Águas Claras DF Launching in 1H11 1,148 1,148 400.2Granjas Werneck MG Launching in 2H11 15,000 15,000 1.500.0 Upper 

Middl

Commercial1.7%

j gFloramar MG Launching in 1H11 1,261 1,261 211.9Samambaia DF Launching in 1H12 14,614 14,614 1.584.0 Projeto Macaé RJ Launching in 2H10 1,182 1,182 95.7 Sítio São João MG Launching in 2H11 2,500 2,500 250.0

Middle1.3%

Medium20.4%

Popular76.6%

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“MINHA CASA, MINHA VIDA”46.927 units elegible program

72.0% of total land bank82.2% of the units comprise large scale projects

17,304 units ready to be launched

Total 62,638 53,009 5,986.8

InventoryInventory

Direcional ended 2Q10 with 3,462 units in stock, which market value totaled R$ 707.9 million (R$ 576.8 million % Direcional). Units from finished projects amounts to 177 with a R$ 33.9 million PSV. The projects under construction already have, in average, 79.4% of their units sold.

Inventories at Market Value in 06/30/2010PSV in Inventory (R$'000) # of Units in 

Inventory% Units

in InventoryTotal % Direcional

Launches 2Q10 147 018 141 822 473 11 5%Launches 2Q10 147,018  141,822  473  11.5%Launches 1Q10 114,484  99,019  797  64.1%Launches 4Q09 19,272  16,526  147  16.9%Launches 3Q09 171,245  130,889  850  19.9%Launches 2Q09 39,409  35,684  256  8.7%Launches 1Q09 34,129  29,523  224  23.6%Launches 4Q08 83,776  60,998  317  26.2%Launches 3Q08 35,296  27,983  131  8.6%Launches 2Q08 10,210  6,983  43  3.4%L h 1Q08 9 750 8 435 27 2 5%Launches 1Q08 9,750  8,435  27  2.5%Previous launches 9,398  4,699  20  3.5%Total Under Construction 673,985  562,561  3,285  20.6%

Finished Projects 33,896  14,193  177  4.7%

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Total Inventory 707,881  576,754  3,462 

2Q10 Financial Highlightsg g

Financial HighlightsFinancial Highlights

Fi i l R lt Financial Results Balance Sheet | Cash Position Results to be RecognizedResults to be Recognized

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Financial Results

Net Revenue (R$ MN)

Financial Results

96%

106%

84 165 149 308

Gross Profit and Gross Margin (R$ MN)

2Q09 2Q10 1H09 1H10

129%

129%

24 56 46 106

28,7%33,6% 30,9% 34,3%

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2Q09 2Q10 1H09 1H10Gross Profit (R$ MN) Gross Margin (%)

Financial Results – Cont. Financial Results Cont.

Sales Expenses (R$ MN) Adjusted G&A¹

% Direcional(R$ MN)

% Direcional

3.5 4.5 6.2 8.4

3.7 11.0 7.1

19.4

2Q09 2Q10 1H09 1H10 2Q09 2Q10 1H09 1H10

4 1% 4.2%4.1%

2.7%

4.2%

2.7%

1.5% 1 2%

1.8%

1.5%

4.4%6.7%

4.7%6.3%

1.6%3.1%

2.0%3.4%

5% 1.2%

2Q09 2Q10 1H09 1H10

% Revenues % Total Sales

2Q09 2Q10 1H09 1H10

% Revenues % Total Sales

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1. Adjusted for expenses (non‐cash) with the Stock‐Option Program of R$ 1.8 million recognized in the period and  non‐recurring expenses of R$ 0,4 million related to IPO (November/ 2009).

Financial Results – Cont. Financial Results Cont.

Adjusted EBITDA and Adjusted EBITDA Margin

110%

121%

21 45 39 87

25.3% 27.1% 26.5% 28.3%

2Q09 2Q10 1H09 1H10

Adjusted EBITDA (R$ MN) Adjusted EBITDA Margin (%)

Adj t d N t I d Adj t d N t I M i

1H09 1H10

Adjusted Net Income and Adjusted Net Income Margin

151%

153%

1641

31

78

19.3% 24.8%20.8%

25.5%

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16

2Q09 2Q10 1H09 1H10Adjusted Net Income (R$ MN) Adjusted Net Margin (%)

1H09 1H10

Balance SheetBalance Sheet

Cash Position 2Q09 1Q10 2Q10 (R$'000) (a) (b) (c) (c/a) (c/b)Loans and Financing 84,996 142,672 220,384 159.3% 54.5%SFH 82,318 137,554 161,435 96.1% 17.4%Securitization of receivables 1,569 991 55,123 3413.3% 5462.4%FINAME d h 1 109 4 127 3 826 245 0% 7 3%FINAME and others 1,109 4,127 3,826 245.0% ‐7.3%

Cash and Cash Equivalents 59,442 292,019 296,036 398.0% 1.4%

Net Debt 25,554 ‐149,347 (75,652) ‐396.0% ‐49.3%Net Debt/Shareholder's Equity 7 3% ‐21 5% ‐10 3% ‐17 6 p p ‐11 2 p p

Amortization Schedule (R$ MN) Cash Burn1 (R$ MN)

Net Debt/Shareholder s Equity 7.3% 21.5% 10.3% 17.6 p.p. 11.2 p.p.

142.2 44.7 41 2 142.2

47.6 30.6

June/2011 June/2012 + June/2013

12.9 28.2 26.6

14.5 25.3 22.5

32.7 41.2

19.4

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10*

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1. Cash Burn: measured by the variation of the net debt, less the capital increases2. 2Q10 * : adjusted by co‐obligation in the securitization of receivables amounting R$ 54.3 million 

Results To Be RecognizedResults To Be Recognized

Results to be Recognized (R$'000) 2Q09 1Q10 2Q10  %  %(a) (b) (c) (c/a) (c/b)

Deferred revenues 444,878 623,125 655,288 47.3% 5.2%

Deferred costs ‐254,199  ‐372,923  ‐394,571  55.2% 5.8%Deferred results 190,679 250,202 260,717 36.7% 4.2%Deferred results ‐ Margin 42.9% 40.2% 39.8% ‐3.1 p.p. ‐3.9 p.p.

Recognition Schedule

45.3% 44.3%

10.4%

2010 2011 2012+

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2010 2011 2012+

DisclaimerDisclaimer

This presentation contains certain forward-looking statements concerning the business prospectsThis 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 onmanagement’s current expectations and estimates of the future performance of the Company. Although theCompany believes such forward-looking statements are based on reasonable assumptions, it can give noassurance that its expectations will be achieved. Expectations and estimates that are based on the futureprospects of the Company are highly dependent upon market behavior, Brazil’s political and economicsituation, existing and future regulations of the industry and international markets and, therefore, aresubject to changes outside the Company’s and management’s control The Company undertakes nosubject to changes outside the Company s and management s control. The Company undertakes noobligation to update any information contained herein or to revise any forward-looking statement as a resultof new information, future events or other information.

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ContactContact

Investor Relations Department

Lucas BousasIR Analyst

Paulo TropiaIR Analyst

www.direcional.com.brri@direcional com br

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ri@direcional.com.br

(55 31) 3214-6450(55 31) 3214-6451