BlancSão Paulo - SPLaunched in March/11

CompanyCompanyPresentation

May 2011

Contents

Brazilian Real Estate Sector Overview

Company Overview

Cyrela and Living - Operating Performance

Living – Economic and Super Economic segments

Fi i l R lFinancial Results

AppendixAppendix

Le JardinCuritiba - PR Launched in Dec/10

BrazilianReal Estate

S t O iSector Overview

A Booming Real Estate Market: Strong Fundamentals

The Brazilian real estate market is posed to benefit from a favorable environmentLow Supply of UnitsLow Supply of UnitsHigh Demand for HousingHigh Demand for Housing Low Supply of UnitsLow Supply of UnitsHigh Demand for HousingHigh Demand for Housing

3. Rising Housing Deficit(1)

Expanding the market for housing (Millions of housing Units)1. Population and families

In millions PersonsYear

2007

2017E

Families

60.3

75 6

Population

189.1

211 2

Personsper family

3.1

2 8

5.46.7

5.8

4 N b f H M P

2017E

2030E

75.6

95.5

211.2

233.6

2.8

2.4(2)

1991 2000 2008

4. Number of Home Moves per PersonLow number of home moves as compared to other countries

BrazilBrazil 1.8x1.8x

2. Monthly income evolution

2007 2030(E)

In millions of families Growth rate(%) per year

BrazilBrazil

MexicoMexico

1.8x1.8x

4.0x4.0xup to R$ 1,000

from R$ 1,000 to R$ 8,000

31.7

27.2

29.1

60.4

more than R$ 8,000 1.4 5.9

-0.4%

3.9%

7.1%

Cyrela is positioned to take advantage of the positive Brazilian real estate environment

G-7G-7 9-10x9-10xTotal 60.3 95.5 2.0%

4

Cy e a s pos t o ed to ta e ad a tage o t e pos t e a a ea estate e o e t

(1) Considers demand in excess of supply.(2) 2008: considering new methodology.Source: IBGE (Brazilian Institute of Geography and Statistics), Brazilian Central Bank, Ministry of Cities, Fundaçāo Pinheiro, FactSet, Bloomberg, Fundação Getulio Vargas and Wall Street Research.

Real Estate PricesIn 12 and 24 months, until September 2010, Brazil ranked first in the list of countries with the highest

real estate appreciation.

Real Estate Appreciation – 12 monthsReal Estate Appreciation – 12 months Real Estate Appreciation – 24 monthsReal Estate Appreciation – 24 months

5.1%South Africa 5 1%Indonesia

7.4%

7.3%

6.7%

Taiwan

Finland

Norway

7.8%

7.0%

6.7%

5.1%

Finland

China (Shanghai)

Austria

Indonesia

20.6%

16.4%

11.5%

Hong Kong

Israel

Australia

18.9%

17.5%

10.8%

Australia

Taiwan

Norway

33.5%

24.6%

22.9%

Brazil

Latvia

Singapore

46.4%

33.1%

24.5%

Brazil

Israel

Hong Kong

NEIGHBORHOOD / CITY Price of usuable area per sq. m. (R$)

Price per unit of 150 sq.m (R$ million)

Price of usuable area per sq. m. (R$)

Price per unit of 150 sq.m (R$ million)

Leblon - Rio de Janeiro (ocean view) 20 thd 3,0 North - Florianópolis (ocean view) 9 thd 1.3Jardim Europa - São Paulo 12.5 thd 1.9 Meirelles - Fortaleza (ocean view) 8 thd 1.2

5

Northwest sector - Brasília 12 thd 1.8 Clube Espanhol - Salvador 7.5 thd 1.1Vila Nova Conceição - São Paulo 9.5 thd 1.4 Batel. Ecoville - Curitiba 4.5 thd 0.7

Real Estate Industry and the Economic CycleBrazilian National Construction Cost Index (INCC):

Materials vs. LaborBrazilian National Construction Cost Index (INCC):

Materials vs. LaborNominal Average Income vs. Construction costsNominal Average Income vs. Construction costs

15 2%

11.9%

15.2%

10.4%9.3% 1150.0

1250.0

1350.0

3.2%

7.8% 7.5%

5.5%5.4% 5.7%5.0%

8.2%7.7%

6.0%

850.0

950.0

1050.0

-0.5%

2008 2009 2010 2011 2012

650.0

750.0

Jan-

05Ap

r-05

Jul-0

5O

ct-0

5Ja

n-06

Apr-0

6Ju

l-06

Oct

-06

Jan-

07Ap

r-07

Jul-0

7O

ct-0

7Ja

n-08

Apr-0

8Ju

l-08

Oct

-08

Jan-

09Ap

r-09

Jul-0

9O

ct-0

9Ja

n-10

Apr-1

0Ju

l-10

Oct

-10

*2010, 2011 and 2012 prospect numbers

INCC Materials Labor

J A O J A O J A O J A O J A O J A O

Nomimal Average Income Accumulated by INCC Labor

During the 2005-2009 period, 722,000 new hires were registered in the Real Estate Industry

During the first half of 2010, 230,000 net hires were added to that figureg , , g

Average income of R$ 699.90 in January 2005 moved up to R$ 1,227.40 at the close of June 2010,

a nominal rise of 75%

6

a nominal rise of 75%

Source: MCM Consultores

Brazilian Saving Accounts and Mortgage System

Uses SourcesUses

65%

52%Individual mortgages

100%

65%

Individual mortgages

g gProperties up to R$

500,000

Construction loans

SavingsAccountsDeposits

and construction

loans13%

Average loan up to R$ 500,000 Cost of

TR + 6.17% p.a.

Saving Accounts(R$ billion)

299.9

30%

Properties over R$ 500,000

Monthly averageor last 12

months average

18 %

253 630% Compulsory

Deposits

months average(the lowest)

253.6

5% Free Usage

7

Dec/09 Dec/10

Source: Santander

Funding Analysis (SBPE)

Annual Growth Rates Bottleneck

Scenario Mortagage Saving Deposits Year Mortgage

outstanding

With 40% of annual growth in

mortgage and 20%Deposits outstanding1 50% 25% Aug-2012 2582 40% 20% Dec-2012 2533 30% 20% Jan-2015 370

mortgage and 20% in saving

accounts, the funding will last

4 15% 0% Mar-2013 168 aprox. for 2 years

Scenario 2

252

Mortgage FundingRequirement

(65% exigibility rule)

252

83.1 87.5 104.0124.9

146.3174.8

(65% exigibility rule)Dec-2012

2005 2006 2007 2008 2009 2010

MortgageOutstanding

253

28.1 34.5 43.6 59.787.4

131.4

8Source: Brazilian Central Bank, Company projections.

g

Dec-2012

28.1

2005 2006 2007 2008 2009 2010

Luzes da MoocaSão Paulo - SPLaunched in Nov/10

Company OverviewOverview

Cyrela Brazil Realty

2005 2006 2007 2008 2009 2010

Launches R$ 1.2 R$ 2.9 R$ 5.4 R$ 5.5 R$ 5.7 R$ 7.6Launches(billion)

R$ 1.2 R$ 2.9 R$ 5.4 R$ 5.5 R$ 5.7 R$ 7.6

Pre-sales(billion)

R$ 1.0 R$ 1.9 R$ 4.4 R$ 5.1 R$ 5.2 R$ 6.2

Landbank(mm sq.m)

3.0 4.9 8.8 11.2 12.6 13.7

Living’s units launched 0 720 6 7 thd 11 1 thd 16 1 thd 15 3 thdLiving s units launched 0 720 6.7 thd 11.1 thd 16.1 thd 15.3 thd

Gross Margin* 48.5% 42.2% 41.2% 38.0% 34.5% 31.4%

EBITDA Margin* 27.1% 22.3% 22.9% 16.5% 22.3% 16.5%

Net Margin* 22 3% 21 7% 24 7% 9 8% 17 8% 12 3%Net Margin 22.3% 21.7% 24.7% 9.8% 17.8% 12.3%

Number of cities 3 8 47 55 66 67

Employees 202 327 529 514 946 1,512

Seller Brokers & Team 100 200 743 637 1 265 1 425

10

Seller Brokers & Team 100 200 743 637 1,265 1,425

*Adjusted for IPO expenses and according to BR GAAP before Law 11,638 until 2007.

Stock Performance – CYRE3

Ownership Breakdown(May, 2011)

Stock Performance*400

200

250

300

350

Outros49.1%

Black Rock Inc.5.3%

Carmignac

50

100

150

200 Carmignac Gestion

7.8%

Grupo Janus5.2%

-

Dec

-05

Mar

-06

Jun-

06

Sep

-06

Dec

-06

Mar

-07

Jun-

07

Sep

-07

Dec

-07

Mar

-08

Jun-

08

Sep

-08

Dec

-08

Mar

-09

Jun-

09

Sep

-09

Dec

-09

Mar

-10

Jun-

10

Sep

-10

Dec

-10

Mar

-11

%

Grupo Controlador

Free Float: 67.3%

* Adjusted data by paid dividends

Cyrela Ibovespa32.6%

Paid Dividends

Payment date Action CYRE3 Dividend yield(R$/share)

6/24/2011 (-) Paid dividend 0,3370 2,09%5/11/2010 (-) Paid dividend 0.4703 2.24%

17% growth in the last 3 years

11

5/11/2009 (-) Paid dividend 0.1854 0.87%5/16/2008 (-) Paid dividend 0.0410 0.19%9/25/2007 (-) Paid dividend 0.1687 0.80%5/10/2007 (-) Paid dividend 0.0852 0.40%

Guidance 2011 - 2012Xxxx

Launches and Sales for 2011 - 2012

Guidance 2011 2012

Launches 7 6 t 8 5 8 7 t 9 8Launches (R$ billion)

7.6 to 8.5 8.7 to 9.8

Sales (R$ billion)

6.9 to 7.7 8.0 to 8.9(R$ billion)

% Cyrela > 78% > 80%

Margins over net revenue for t k 2011 and 2012Living’s stake

Living - Launches 2011 2012Gross

2011 3.0 to 3.5

2012 3.7 to 4.5

Gross Margin 27% to 31% 31% to 35%

EBITDA Margin 15% to 19% 18% to 22%

12

Getúlio Vargas Prime OfficesPorto Alegre - RSLaunched in Dec/2010

Cyrela and LivingCyrela and LivingOperating

performance

Cyrela and Living Operating Results

15 projects launched in 1Q11

3.9 thd units sold in 1Q11

75.9 % of 1Q11 sales were related to inventory sales

Launches(R$ million)

Sales (R$ million)

5 393 1 5 452 7 5,678.9

7,609.9

5 241 1

6,172.4

5,955.32,916.6

5,393.1 5,452.7 ,

4,391.9 5,144.2 5,241.1

93 3%-6.3%

1,004.21,924.4

3,332.3 3,783.64,464.8

,

481.6 907.2

1,211.3 596.3

1,152.5

755.01,368.8

2,815.53,458.0

4,088.04,777.5

869.0 844.0

1,023.0

1,915.1

1,065.8 998.6

+ 93.3%

2005 2006 2007 2008 2009 2010 1Q10 1Q11

Cyrela Partners

2005 2006 2007 2008 2009 2010 1Q10 1Q11

Cyrela Partners

14

Sales Speed Cyrela + Living

Inventories on March 31, 2011: R$ 5.2 bn (100%) and R$ 4.1 bn (%CBR) 6.8 months of sales*

Sales over Supply (VSO)Contracted Sales of Inventory (R$ million)

66.8%60.7% 61.5% 62.4%

73.3%

56 1%

75.9%

37.6%

52.4%

37.8% 36.5%

56.1%

43.4%

21.2%

37.6%

25.4%35.7%

26.2%34.3%

51.9%

728.9828.9

539.3 1,940.9 1,630.9

2,268.5

1,539.9

2,541.4

16.5%349.4

1,212.0 414.1 269.6 185.5 315.8

1,014.4 1,439.7

284.2 676.5 580.3

2,002.1

241.1

702.6

728.9

638.4 296.5 296.4

524.0

616.5

781.5 863.4

445.1 757.5

1,052.0 1,052.5

566.1 481.9 839.8 1,065.8 1,025.4 998.6

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 12M1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11

Sales of Launches from the Quarter Sales of Inventory % Sales of Inventory

15* Considering the calculated monthly pre – sales guidance mid range

Landbank

PSV of R$ 44.6 bn (100%) and R$ 38.5 bn (%CBR)

31 plots of land acquired in 1Q11 with PSV of R$ 3.6 bn

Land Plots by Segment

p q Q $

79% of landbank acquired through swaps

245 projects with 182 000 unitsCyrela 73%

Living245 projects with 182,000 units

All land plots related to 2011 launches have already been acquired by 1Q11

Living27%

Land Plots by RegionCyrela’s Landbank – 100%

( R$ billion)

RJ36%

14.512.9

São Paulo30%

Southeast others

2%5.4 6.4

12.9

5.32%

South6%

Northeast17%North

6%

MidWest3%

Super Economic Middle Mid-High High-End

16

17%6%pEconomic

g g

Delivered and Transferred Units

Volume Transferred by segment

444 7 460.8

172.7153.0

138.8

444.7 460.8431.4

272.0 307.8 292.688.7119.5

203.6

65.8114.9

53.7

1Q10 2Q10 3Q10 4Q10 1Q11

3.9 units delivered in 1Q11 in 18 projects

Living MAP

R$ 1.1 billion in PSV of delivered units

Living delivered 1.9 units in 8 projects, with PSV of R$ 243.6 million

96% of delivered units in 1Q11 have already been sold

17207 construction sites at the end of March, of which 89 are Living's projects

Vitória MaguaryBelém - PALaunched in November/10

LivingLiving Economic and Super pEconomic segment

Living’s Launches

Living: 30.1% of PSV launched and 32.8% of PSV sold in 1Q11

2.4 thd units lauched in 1Q11 70% within the “MCMV” Program

Launches(R$ million)

Sales(R$ million)

1 806 6

2,231.5 CAGR 05-10 = 126.5% CAGR 05-10 = 153.3%

1,350.6

1,726.4 1,804.1 1,499.0

1,806.6

919.71,250.3 1,332.2

641.1 411.5 327.4

602 11,039.4

1,323.71,688.8

883.5

323.7 346.5

-20.4%+ 7.1%

442.6 306.9 268.943.8

2006 2007 2008 2009 2010 1Q10 1Q11Li i P

602.1236.5 222.5

84.8

2006 2007 2008 2009 2010 1Q10 1Q11

19

Living PartnersLiving Partners

Living’s Landbank

Potential PSV of R$ 12.0 bn (100%) and of R$ 10.4 bn (% Living)

19 plots of land acquired in 1Q11 PSV of R$ 2 0 bn19 plots of land acquired in 1Q11 PSV of R$ 2.0 bn

72% of landbank paid through swaps

A i it R$ 127 3 thdAverage price per unit - R$ 127.3 thd

Living’s Landbank – 100% Breakdown by Regiong(R$ billion)

Breakdown by Region

RJ25%

São Paulo35%

5%

Southeast others

5.46.3

others3%

South12%

Northeast5%

North12%

MidWest8%

0.3

Super economic Economic Middle

20

12%Super economic Economic Middle

“Minha Casa, Minha Vida” Program

Living in MCMV (BB / CAIXA)Living in MCMV (BB / CAIXA)TOTAL 43,192

Breakdown:Breakdown:Submitted 2,572

Approved for sale 11,103

To be contracted 5,084

Contracted 24,433

Living - Transferred From the total transferred units, 2009 696

2010 10,887

about 80% were under the MCMV program

2 301 units were transferred in the1Q11 2,301

Total 13,884

2,301 units were transferred in the first quarter of 2011.

21

Financing: Interest and Term Impact

10 15 20 25 30Loan Term (years)

10 15 20 25 30Loan Term (years)

Monthly Installment (R$) Minimum Wages Required 2005 (monthly salary)

10 15 20 25 3012% 10 8 8 7 711% 9 8 7 7 710% 9 7 7 6 69% 9 7 6 6 68% 8 7 6 5 5R

ate

(%)

10 15 20 25 30120 180 240 300 360

12% 1377 1152 1057 1011 98711% 1322 1091 991 941 91410% 1269 1032 926 872 8429% 1216 974 864 806 772e

(%) Model:

U it V l R$ 120 0008% 8 7 6 5 57% 8 6 5 5 56% 8 6 5 4 45% 7 5 5 4 44% 7 5 4 4 3R

eal I

nter

est R9% 1216 974 864 806 772

8% 1165 917 803 741 7047% 1115 863 744 679 6396% 1066 810 688 619 5765% 1018 759 634 561 515al

Inte

rest

Rat

e Unit Value: R$ 120,000

Loan-to-Value: 80%

Mortgage Effort: 30%

3% 7 5 4 3 32% 6 4 3 3 3

4% 972 710 582 507 4583% 927 663 532 455 4052% 883 618 486 407 355

Re

10 15 20 25 30Loan Term (years)

10 15 20 25 30Loan Term (years)

Monthly Installment (R$) Minimum Wages Required 2010 (monthly salary)

10 15 20 25 3012% 14 11 10 10 1011% 13 11 10 9 910% 12 10 9 9 89% 12 10 8 8 8at

e (%

)

10 15 20 25 3012% 2066 1728 1586 1517 148111% 1984 1637 1486 1411 137110% 1903 1547 1390 1309 12649% 1824 1461 1296 1208 11598% 1747 1376 1204 1111 1057R

ate

(%) Model:

Unit Value: R$ 180,0008% 11 9 8 7 77% 11 8 7 7 66% 10 8 7 6 65% 10 7 6 6 54% 10 7 6 5 4ea

l Int

eres

t Ra8% 1747 1376 1204 1111 1057

7% 1672 1294 1116 1018 9586% 1599 1215 1032 928 8635% 1527 1139 950 842 7734% 1458 1065 873 760 687R

eal I

nter

est R Loan-to-Value: 80%

Mortgage Effort: 30%

22

4% 10 7 6 5 43% 9 6 5 4 42% 9 6 5 4 3

Re3% 1390 994 799 683 607

2% 1325 927 728 610 532

Mirai OfficesBelém - PALaunched in Oct/2010

Financial Results

Financial Results (R$ million)

Net Revenue - (R$ million)Net Revenue - (R$ million) EBITDA - (R$ million)EBITDA - (R$ million)

4,087.8

4,890.1 911.3

808.3

1,707.3

2,847.4

248.5

390.5 461.0

224.7

- 38.1%+6.0%

689.0 1,116.7

,1,132.4 1,200.7

200 2006 200 2008 2009 2010 1Q10 1Q11

157.8 224.7

139.2 22.9% 22.3% 22.9% 16.2% 22.3% 16.5% 19.8% 11.6%

2005 2006 2007 2008 2009 2010 1Q10 1Q112005 2006 2007 2008 2009 2010 1Q10 1Q11

Net Profit - (R$ million)Net Profit - (R$ million)Backlog - (R$ million)Backlog - (R$ million)

34.4%

729.3

600.3 5,033.4

5,920.2 5,762.0

34.4%31.1% 31.0%

127.8 242.3

422.1

277.7 174.2

74.218 6% 21 7% 24 7% 9 8% 17 8% 12 3% 15 4%

- 57.4%

24

74.2 18.6% 21.7% 24.7% 9.8% 17.8% 12.3% 15.4%6.2%

2005 2006 2007 2008 2009 2010 1Q10 1Q112009 2010 1Q10

Revenue to be Recog. Gross Mg. To be Recog.

Accounts Receivable (R$ million)

Accounts Receivable Receivable Schedule

11,858

And Costs to be incurred38.6%2011

1,741 Finished units: IGP-M + 12%Under Construction: INCC

15.6%

22.3%

2013

2012

10,117

3 976

23.5%After 2013

3,976

Constructed units

Schedule of costs to be incurred(sold units- R$ million)

Units under constructionConstructed units

Construction costs to incur – sold units1,427.4 2011

1,359.3 2012

25

1,189.0 Further years

Liquidity

Debt(R$ million)

BalanceMaturity Cost(R$ million) March 31, 2010Maturity Cost

SFH 2,142.0 2010 to 2014 TR + ~ 10.4% p.a.

Debentures 1st issue 500.0 2012 ,2013,2014 CDI + 0.48% p.a.

Debentures 2nd issue 42.6 2018* CDI + 0.65% p.a.

D b 3 d i 350 0 2014 CDI 0 81%Debentures 3rd issue 350.0 2014 CDI + 0.81% p.a.

Debentures 4rd issue 300.0 2014 115% CDI

Nov/2010 Nov/2011Bradesco (stand-by) and others 221.5 Nov/2010, Nov/2011, Nov/2012, Nov/2013 CDI + 0.81% p.a.

Loans (foreign currency) – US$ 50 million 48.9 Jun/2012 Libor + 4.3% p.a.

Total Debt withSFH 3,605.0

Total Debt without SFH 1,463.0

Cash and Cash Equivalents (1 213 6)

Net Debt with SFH

LTM EBITDA= 3.3

Cash and Cash Equivalents (1,213.6)

Net Debt withSFH 2,391.4

Net Debt without SFH 249 4

LTM EBITDA

Net Debt without SFH

26

Net Debt without SFH 249.4 Net Debt without SFH

LTM EBITDA= 0.3

* Interest rate renegotiation in Jan/11

Pre-Sales to be Recognized

2007R$ million 2008 2009 2010

1,597.1

4 515 2

Sales to be recognized at the beginning of the period

Net sales recorded in the period

4,081.6

3 974 4

5,124.2

4 324 6

5,224.0

5 945 24,515.2

(2,030.3)

Net sales recorded in the period

Revenues recognized in the period

3,974.4

(2,930.8)

4,324.6

(4,192.3)

5,945.2

(5,976.5)

3 933 0Net Sales to be recognized at the end of the period 4 937 2 5 033 4

(149.0)Taxes (3.65%) (187.0) (190.7)

6 136 2

(215.9)

(2,604.7)

3,933.0Net Sales to be recognized at the end of the period

Cost of units sold to be recognized (3,217.2)

4,937.2

(3,300.8)

5,033.4

(4,079.0)

6,136.2

(26.3)Selling Expenses (37.6) (14.7) (22.9)

1,327.9

33.8%

Gross profit to be recognized

Percentage of gross profit

1,719.9

34.8%

1,732.6

34.4%

1,818.3

31.1%

27

Host ParaisoSão Paulo - SPLaunched in August/10

Appendix

Cyrela’s History

•Cyrela 2nd Follow-on

• 4th debenture issue, in the amount of R$ 300.0 million2010

•2nd debenture issue in the amount of R$ 499 5 million

Cyrela 2 Follow-on •3rd debenture issue in the amount of R$ 350.0 million•Merger of Goldsztein Participações into Cyrela

2009

2008

•Cyrela 1st debenture issue, in the amount of R$ 500.0 million•Spin-off of Cyrela Commercial Properties (CCP)

•2 debenture issue in the amount of R$ 499.5 million

2007

2008

•Merger of Brazil Realty into Cyrela Vancouver and creation of Cyrela Brazil Realty

•Cyrela 1st Follow-on 2006

g y y y yEmpreendimentos e Participações S.A (CBR) •Cyrela’s IPO

•Cyrela subsidiaries are grouped under Cyrela Vancouver2004

2005

•Beginning of the partnership of Cyrela with RJZ Engenharia, in Rio de Janeiro

•Cyrela subsidiaries are grouped under Cyrela Vancouver

1996

2000

2004

•Brazil Realty, a joint Venture with Argentine company IRSA, is founded

•Brazil Realty’s IPO

1994

1996

29•Cyrela is founded in São Paulo, SP

•Cyrela Construtora is founded and Seller (own sales team) is created

1962

1981

Geographical Expansion

Presence in 67 cities in 17 states of Brazil, Buenos Aires in Argentina and Montevideo in UruguayLiving is present in 47 cities and 12 statesg p

200920092006200620052005

AC

AM

RR

RO

PI

MAPA

AP

TO

CERN

PE

ALSE

PB

AC

AM

RR

RO

PI

MAPA

AP

TO

CERN

PE

ALSE

PB

AC

AM

RR

RO

PI

MAPA

AP

TO

CERN

PE

ALSE

PB

SC

PR

SP

MG

GO

MT

BA

MS

RJ

ES

DF

SC

PR

SP

MG

GO

MT

BA

MS

RJ

ES

DF

SC

PR

SP

MG

GO

MT

BA

MS

RJ

ES

DF

RS

BuenosAires

RSRS

+ +

% ofBrazilian

% ofBrazilian 90 5%(1)80 5%47 9%

30

GDP CoveredGDP Covered

(1) Considers 2007 data, most recent.Source: Company and IBGE.

90.5%( )80.5% 47.9%

Cyrela Brazil Realty Group

Development and Construction Joint Ventures and Partnerships

Sales ServicesSales Services

31

2016 Olympic Games

R$ 14bn of PSV in Rio de Janeiro of which almostBarra da Tijuca RJ

Strategically positioned landbank in Rio de Janeiro

R$ 14bn of PSV in Rio de Janeiro, of which almost

90% is located in Barra da Tijuca

Barra da Tijuca was chosen as the location for the new

Barra da Tijuca - RJ

C Barra da Tijuca was chosen as the location for the new

Olympic Games facilities, such as the Olympic Training

Center and the Olympic Village. Such facilities and their

Cidade Jardim Centro

Metropolitano

benefiting to the region will endure for long after the

Olympic GamesGleba F

Future facilities ofUntil 2016, more than R$100 billion of investments

expected for the projectPenínsula

Future facilities of Olympic Games

2016

► The civil construction sector is expected to account for approximately 10% of the investments

$

Península

► The local government announced R$ 11.4 bninvestment in transportation infrastructure to facilitate access to the region

32Source: Rio 2016 official Olympic project

Cyrela is the best positioned real estate company to profit from the 2016 Olympic Games

Typical Cyrela Project (without swap)

Launch Go-ahead Delivery Completionof payments

Construction6M - 18MLicensing

Pre sales 0 50 70 90 100 10080 95

Up to 100M18M 24M 30M 36M12M6M0M

Licensing

Pre-sales 0 50 70 90 100 10080 95

% Budget Costs - - 26% 54% 100% 100%38% 73%

Revenues - - 18 49 100 10030 69

Assumptions for this example:

Collections(cumulative) - 7 14 28 35-50 10020 34

Potential sales: R$ 100 million

Considering gross margin of 35% (land cost 15% and construction 50%)

33

Considering gross margin of 35% (land cost 15% and construction 50%)

Does not include financial revenues deriving from customer financing

Typical Living Project (without swap)Shorter operating cycle: 24 months

Launch Go-ahead Delivery Financing

18M 24M U t 28M12M6M0M

0 - 6 monthsPre-Launching

Construction

Contracted Sales(cumulative)

- 70 80 10090 100

18M 24M Up to 28M12M6M0M

%Construction Cost - 14% 34% 100%81% 100%

RevenuesRevenues(cumulative) - 10 27 10073 100

Collections(cumulative) - 6 11 2013 100(cumulative)

Assumptions for this example:

Potential Sales: R$ 100 million

34

Considering gross margin of 30% (land cost 10% and construction 60%)

Client is fully financed by the banks after keys handover

Short Cycle Process

Launch Go-ahead DeliveryFinancing

0 – 6 monthsPre-Launching

12M 16M Up to 20M8M4M0M

Construction

Living Corporate EnvironmentEngineeringProduct

Servicing the client from purchase onwards, through a single communication channel: the Customer Servicing Platform

Use of “Lean Construction” ConceptAssembly lineReduction of waste and costs

Simple, standard and easily executed projects focused on low income segment. Standardization of: g

In-house and trained sales forceFinancing availability through CaixaEconômica Federal

Enhancement of construction methods for popular housingIncreased productivity and quality during works execution

► Land acquisition► Real Estate Development► Sales g

Increased costumer satisfactionPrice defined by product (not by sq.m.)

► Construction► Customer Relationship

Prices from R$90,000 to R$ 200 000

Source: Company

15% cost reduction expected200,000Units from 45sq.m. to 75sq.m

35

Source: Company

Cost Overrun – Impact on earnings in 4Q10

Impact on earningsConstruction Sites with cost overrun

Cost Overrun– 5% Cyrela

35%

R$ 533.6 million

9M10R$ 162 8 MM* R$ 75.8 MM

R$ 533.6 million

R$ 3,2 bi 35% R$ 162.8 MM

4Q10Third PartsBudget Cost

Base** 65% 4Q10R$ 370.8 MM* R$ 244.3 MM

Third Parts65%

Base**

70% of the costs overrun concentrated on 30 construction sites* Urban Developments Included

Delivery Timeline of Construction Sites with Costs Overrun

** Budget Cost Base from Dec/09 of R$ 10.2 billion10 construction sites represents 40% of the costs overruns* Urban Developments Included

70.4%

36

29.6%

2011 2012

Cyrela’s Share in Projects

Cyrela’s Share in Projects (%)

> 78%

> 80%

2011

2012E

E

79%

78%

> 78%

2009

2010

2011E

64%

69%

79%

2007

2008

2009

83%

66%

64%

2005

2006

2007

83%

0% 20% 40% 60% 80% 100%

2005

37

Organic growth in construction sites

Adequacy of the organic growth strategy in the construction sites, with reduction on the use of

third parties constructorsthird parties constructors.

Cyrela's Share in Construction Site ManagementCyrela s Share in Construction Site Management

e > 70%2011E

47%

60%

2009

2010

34%

47%

2008

2009

44%

28%

2006

2007

74%

0% 20% 40% 60% 80% 100%

2005

38

Contact IR

Cyrela Brazil Realty S.A. Empreendimentos e ParticipaçõesAv Presidente Juscelino Kubitschek 1455 3rd floorAv. Presidente Juscelino Kubitschek, 1455, 3rd floorSão Paulo - SP – BrasilCEP 04543-011

Investor RelationsPhone: (55 11) 4502-3153 ri@cyrela.com.br

www.cyrela.com.br/ir

Statements contained in this press release may contain information which is forward-looking and reflects management'scurrent view and estimates of future economic circumstances, industry conditions, company performance and the financialresults of Cyrela Brazil Realty. These are just projections and, as such, exclusively based on management's expectationsof Cyrela Brazil Realty regarding future business and continuous access to capital to finance the Company's businessplan. Such future considerations rely substantially on changes in market conditions, government rules, competitor's

39

plan. Such future considerations rely substantially on changes in market conditions, government rules, competitor spressure, segment performance and the Brazilian economy, among other factors, in addition to the risks presented on thereleased documents filed by Cyrela Brazil Realty, and therefore can be modified without prior notice.