Presentation

Cyrela by Pininfarina São Paulo - SP

Cyrela

Overview;

History;

Strategic focus;

Operational figures;

Financial indicators;

Portfolio.

AGENDA

AGENDA

Cyrela

Overview;

History;

Strategic focus;

Operational figures;

Financial indicators;

Portfolio.

CYRELA AT A GLANCE

Leadership position in the industry

50 years of history

~ 15,000 employees

More than 200,000 clients

Receivables – R$ 6,2 billion (As of June, 2016)

The “Most Admired Company in Brazil” in “Construction, Homebuilding and Real Estate Development Companies” category for the tenth consecutive year

45% 21% 34%

Free-float Founders Top

Shareholders

Solid group with extensive experience in the industry

Geographical footprint (Launches) Rating

Shareholders’ structure

26.0% 36.9%

Source: Cyrela Note: (1) Including third parties

1

South

Minas Gerais

Rio de Janeiro

São Paulo - Other Cities

São Paulo 16.6% 43.1%

16.7%

9.7%

13.8%

• National Scale: AA-(bra) • Foreign Currency: BB • Outlook: Stable.

• National Scale: brAA- • Global Scale: BB • Outlook: Negative.

• National Scale: Aa3.br • Global Scale: Ba2 • Outlook: Negative.

AGENDA

Cyrela

Overview;

History;

Strategic focus;

Operational figures;

Financial indicators;

Portfolio.

SOLID TRACK RECORD

Cyrela is founded as a land broker in São Paulo

Expansion to Rio de Janeiro and other states

Cyrela’s IPO

Spin-off of Properties Division ( Cyrela Commercial Properties)

1st debenture offering (out of a serie of 6 debentures)

1st receivables back securities (CRI’s) offering (out of a serie of 2 CRI’s)

Launch of facebook sales channel

6st debenture offering

60’s 80’s and 90’s ´00-’10 ´11-´13

Vertical integration

Land broker

Developer

Cyrela becomes listed company

Foundation Integration Expansion Consolidation

Dividend payout: approximately 25% of its

adjusted net income

Internal committees in line with the

best corporate governance and risk

mitigation practices

Corporate governance practices, based on

principles that privilege transparency

Business management. Follow-up and

accountability models are based on strict ethical

principles

Board of directors made up of at least 5

members

At least 20% should be independent

members

Ensure at least 25% of the total stock is available

for trading

Adopt public offer procedures that favor the

shareholding dispersion

Minimum standards for quarterly disclosure of

information

Stock option program

Allow the company and its subsidiaries to

attract and retain Eligible Persons

Transparency

Independent and strong board of directors

1st homebuilder

listed on Novo Mercado

Clear internal politics

Well defined key business

process

Align shareholder

interests

Oreganic

growth

Key internal

process control

Focus on key

segments

(income profile)

Solid financial

discipline

Focus on

profitability

over growth

CORPORATE GOVERNANCE & STRATEGY

1 Source: Cyrela

Strategy

Corporate governance

CYRELA HIGHLIGHTS

1 Leadership position in the industry and key markets

2 Fully integrated real estate company

(from land acquisition to selling)

3 Exposure to all customer segments

4 Fully professionalized management team with deep

industry

Solid balance sheet (largest real estate company in Brazil

by market cap) 5

Expertise in designing innovative projects 6

Strong Brand: The most admired Real estate company 7

RECENTS AWARDS

Cyrela by Pininfarina was the winner of the 2016 iF Design Award in the Architecture and Interiors category. With 60 years of tradition, this german award is one of the most respected in the sector.

The 2nd best developer and homebuilder - 2016.

Cyrela received the Top Employer Certification, given to the world’s best employers, in 2015.

Cyrela is in Valor Econômico newspaper’s Anuário Inovação Brasil Ranking of Brazil’s 100 most innovative companies. It ranks 4th in the Engineering, infrastructure and Logistics category, standing out for the implementation of processes to shorten deadlines, cut down on waste and increase productivity at work.

The “Most admired Company in Brazil” in “Construction and Real Estate Development Companies” category. – 2015.

Winner in the category of Brand Communication with the “Identidade Cyrela” [Cyrela Identity] case, about the branding project the Company launched in 2013

Internal

SUSTAINABILITY PRACTICES – SOCIAL INITIATIVES

External

Improvement of well being of Cyrela workers and

their families

Eliminate illiteracy among Cyrela workers

Increase family income through professional training for worker’s

wives

Professional training for young relatives of workers

Positive impact in local communities

Cyrela institute (vehicle for working with NGOs and developing

programs)

First professional experience for young adults from low income

communities

Objectives

Objectives

Examples of initiatives

Examples of initiatives

Sustainability and acessibility handbook

Sustainable Production

Environmental policy for suppliers

Benchmark in waste management

Recycling Program

CarboboNeutro® Program

Eco-efficiency guidelines for projects:

Selective waste collection

Water-saving devices

Collection of used batteries

Individual water and gas meters

Power-saving devices

Oil collection for recycling

Optimization of resources

Acessibility

Bicycle parking lot

Waste management

Technological development

Nature-friendly construction

Cyrela moves foward in defining integrated eco-efficient actions

SUSTAINABILITY PRACTICES

ENVIRONMENTAL INITIATIVES

Distinctive environmentally-friendly practices

AGENDA

Cyrela

Overview;

History;

Strategic focus;

Operational figures;

Financial indicators;

Portfolio.

Execution Cost control

Systems and process improvement

Corporate Engineering

Bonus – focus on deliveries

Company Longevity Leader’s development Meritocracy Cyrela’s cultura

Financial Discipline Focus on margin “Cost Culture” Leverage Reduction

Back to Cyrela “DNA” Focus on mid to high-end products Living as a brand MCMV through Cury

BACK TO BASICS

...PROCESS THAT STARTED IN 2010

Governance Commitees Processes and policies

Back to Basics

Partnerships

Startups

Closing / Acquisition

Final Position

2006 2007 2008 2009 2010 2011 2012 ... 2016

5 11 11 9 7 4 4 ... 4

REDUCTION IN THE NUMBER OF JV’S, KEEPING THE

ONES THAT ATE IN LINE WITH CYRELA’S STRATEGY

SHIFT IN STRATEGY HAS ALREADY TRANSLATED INTO

MORE ORGANIC OPERATIONS

Cyrela’s share in projects (%) Cyrela’s share in construction site management (%) 1 2

1 Share in projects launched 2 Cyrela + JV’s

Company should keep working with partners on development

Cyrela has been focusing on using own engineering

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

2012 87%

2006 44%

2007 28%

2008 34%

2009 47%

2010 60%

2011 81%

2013 91%

2014 94%

2015 95%

2016 97%

+100.0% +80.0% +60.0% +40.0% +20.0% 0%

2006 73%

2007 65%

2008 59%

2009 76%

2010 77%

2011 81%

2012 73%

2013 71%

2014 82%

2015 78%

2016 78%

GROSS MARGIN

Cyrela expects the gross margin to grow in a sustainable pace going foward

39.6%

27.4%

33.0%

Gross Margin Gross Margin EX Ret / Riserva Golf

RECOGNIZED BRANDS AND DIVERSIFIED PROTFOLIO

SP RJ SOUTH MIDDLE WEST NORTH

JV’s New Businesses

Financial strength, credibility and entrepreunership

THE WAY CYRELA PLAYS IN THE REAL ESTATE MARKET

USING AN INTEGRATED BUSINESS PLATFORM

Luxury / High

Middle

Economic

AGENDA

Cyrela

Overview;

History;

Strategic focus;

Operational figures;

Financial indicators;

Portfolio.

PSV of R$ 51.8 bn (100%) and R$ 44.8 bn (%CBR).

76.5% of landbank acquired through swaps.

(R$ billion)

LANDBANK

Others

7.6

South

4.2

São Paulo

14.6

Rio de Janeiro

25.5

11.2

14.3

Total

51.8

37.6

14.3 Swap agreement

Cyrela – Landbank (100%)

OPERATIONAL HISTORY

Launches – PSV (billion)

Pre-Sales – PSV (billion) Direct employees

Launched units (thousands)

-45%

+9%

3.4

8.4

13.1

27.9

23.4 26.1 27.6 26.4

18.3 16.9

984946

514529

-13%

+34%

1,264 1,373

1,460

1,728

1,512

CYRELA

OPERATING RESULTS

12 projects launched in 6M16, 91 in 2015, 53 in 2014 and 74 in 2013;

3.0 thd units sold in 6M16, 9 thd in 2015, 14.6 thd in 2014 and 30.0 thd in 2013.

Launches – R$ Billion Pre-Sales – R$ Billion

0.5

7.6

6.0

1.6

2010

7.9

6.3

1.7

2011

5.6

3.9

2009

1.7

5.5

1.2

2013

5.7

4.5

3.4 3.8

5.4

1.7

2007

2.0

2.0

1.2

6M16

4.6

2.4

2015

0.3

2.9

6.6

2008

4.9

1.0

2012

5.8

2014

0.9

Partners CBR

1.1

6M16

0.9

0.2

2015

6.2

1.3 4.4

2.9

2008 2007

2.1

4.0

5.2

1.5

3.1

5.1

4.8

2009

1.4

6.5

4.4

1.2 6.0

5.3

2010 2011

1.6

0.8

2014

2.6

3.4

1.0

2013

4.7

5.7 2.1

2012

5.1

7.2

SALES

* Considering the sales LTM

(R$ billion)

Sales – PSV (billion) Sales 2016– Region

Sales speed* – 12M

-31% +9%

6M16

1.1

2015

3.4

2014

5.7

2013

7.2

2012

6.0

2011

6.5

2010

6.2

2009

5.2

2008

5.1

2007

4.4

SALES BY VINTAGE

(R$ million)

Sales by vintage of launching

Sales Speed of the last 12 months attained 30.1% in 2Q15.

Sales by vintage of launchings

391306

386

252

36%

47%

37%

38%

42%

22%

10%

5%

17%

5%

6% 6%

5%

55%

47%

69%

74% 7%

4%

In 15 months

In 12 months

In 9 months

In 6 months

In 3 months

INVENTORIES

Finished units represent 32% of inventories.

Inventories – Market value (R$ MM) Inventories – Delivery date

Inventory to be

deliveredTotal Consolidation Equity Method

Finished Units 2.108 1.731 377

12 Months 1.638 1.456 182

24 Months 1.822 1.628 194

36 Months 873 842 31

48 Months 117 - 117

Total 6.558 5.657 902

TOTAL INVENTORY

Inventory under construction Finished inventory

Minas Gerais

0.5%

Espírito Santo

1.0%

Middle West

2.0% North

2.6%

South

8.5%

Northeast 8.0%

Rio de Janeiro

28.2%

São Paulo - Other Cities

18.9%

São Paulo

30.3%

Changes in Inventory Inventory Breakdown

R$ 6.6 billions in inventory (R$ 5.4 billion %CBR);

R$ 2,108 million of finished units inventory (vs. R$1,957 million in 1Q15).

(R$ million)

FINISHED UNITS INVENTORY

Finished Units Finished Units Breakdown

1,956.8

Vendas Estoque Pronto

2,108.3

+8%

-72.4

Estoque Pronto 1Q15

Var. Preço Estoque Pronto 2Q16

-49.7

Entrega Estoque Pronto

273.6

-57.5% -16.9% +15.2%

6M16

10.2

5.2

5.0

2015

24.0

14.8

9.1

2014

20.8

9.2

11.6

2013

25.0

11.8

13.2

7.5

2.1

5.4

23.8

13.2

10.6

2011

15.4

7.1

8.3

2010 2012

5.8 thousand units delivered in 2Q16, in 17 projects. In the year, 10.2 thousand units delivered, in 36 projects;

Middle + MCMV: 2.9 thousand units delivered in 7 projects in 2Q16.

The units delivered in 2Q16 represent launches PSV of R$ 2,132 million. In the semester, the PSV delivered

represented R$ 4.1 billion.

(Units thd)

DELIVERED UNITS

Middle+MCMV

High End

AGENDA

Cyrela

Overview;

History;

Strategic focus;

Operational figures;

Financial indicators;

Portfolio.

571

106

448

661719

498

600

2015 2014 2013 2012

660

2011 2010 6M16

FINANCIAL RESULTS - YTD

Gross Margin EBTIDA Margin

(R$ million)

Net Margin

* Data before “CPC” (IFRS 10 and 11) “Ex-RET”

EBTIDA Margin

Net income

31.4%

30.3%

32.3%

32.7%32.1%

34.6%

36.9%

2010 2011 2012 2013 2014 2015 6M16

12.3%

8.8%

11.7%

13.4%

11.4%

10.3%

7.3%

2010 2011 2012 2013 2014 2015 6M16

16.5%

15.2%

19.4% 20.5%18.0%

17.2%

12.4%

2010 2011 2012 2013 2014 2015 6M16

FINANCIAL RESULTS

(R$ million)

Margin

Gross revenue Gross profit and Gross Margin

EBITDA and EBITDA Margin Net Income and Net Margin

833 662399

760

254

536

282

236

390

180

63117

118

219

1064561

RETURN ON EQUITY

Return on Equity (net income LTM / Average Equity LTM ex - minorities) attained 5.7%

* ROE: Net income / Average shareholders’ equity, excluding minorities

HEALTHY LIQUIDITY AND DEBT INDICATORS

(R$ million)

* Data before “CPC” (IFRS 10 and 11)

2011

24.1% 22.2%

32.8%

39.6% 41.5%

55.1%

2015 2015 2013 2014 2012

Debt

Net debt / Equity

Net Debt

1.63

Cash and Cash Equivalents

1.88

Term

3.51

2.35

1.16

Gross Debt 2Q16

3.51

2.39

1.13

Gross Debt 1Q16

3.63

2.31

1.32

Gross Debt 4Q15

3.71

2.32

1.40 Indicators

Total Debt

Debt Ex-SFH

Net Debt/ EBITDA 12M

3.0x -1.4x

Net Debt/ Equity

24.1%

Average Cost W/o SFH: 99.4% CDI SFH: TR + 9.11% p.y.

Duration 1.8 year 2.0 year

Short Term 33% 17%

Long Term 67% 83%

TRANSFERS, PAY OFFS, TRUST OF DEED

(R$ million) (units thd)

Volume Units

In 2Q16, the volume of transfers, payoffs and trust of deeds attained R$ 792 million, 20.5% lower than 1Q16 and

10.9% lower than 2Q15. In the year, R$ 1,449 million, volume 16% lower than 6M15.

662423 414

837

213308

207

391

515

37

14

2Q16 6M16

+20.5% -10.9%

6M15

1,733

1,302

40

1Q16

657

2Q15

889 792

61

1,449

98

-17.7%

1Q16

2.9

1.9

0.9

+19.6%

2Q16 6M15

3.5

1.9

0.2

1.4

2Q15

4.2

2.8

0.1 1.3

6M16

7.9

5.5

2.4 6.4

3.8

2.3

Payoffs Trust of Deeds Transfers

BUSINESS, CASH FLOW AND ACCOUNTING CYCLES

1 Source: Cyrela 2 Note: (1) Cycle I: In terms of % VGV of one project; Cycle II in terms of % revenues related to one project

Land swap or acquisition

Development 12-24 months

Sales & Construction 36 months

Consuption of 15% in case of acquisition

Low cash comsuption

5% cash recovery Recovery of 25%

- - - Revenues as percentage of completion method

Delivery 3 – 12 months

Final 70% of VGV

100% of revenues recognized

Launch

3% consumption due to marketing

3% of revenue recognition

Cash Flow

Accounting

70%

(15%)

0%

100%

Cash flow

Accounting

Business cycle

CASH GENERATION*

(R$ million)

*Ex dividends, buyback and stake acquisition

Cash consume of R$ 29 million in 2Q16, vs. a cash consume of R$ 13 million in 1Q16 and a cash generation of R$ 219

million in 2Q15. In the year, cash consume of R$ 42 million, vs. a cash generation of R$ 622 million in 6M15.

-42

622

-29

219

-29-13

Cash generation ex- acquisition of equity interest

AGENDA

Cyrela

Overview;

History;

Strategic focus;

Operational figures;

Financial indicators;;

Portfolio.

MANDARIM

SÃO PAULO (2006)

The tallest residential

building in latin america (2006);

Ballroom on the 41st floor;

First project with different

typologies in the same building;

CIRAGAN

SÃO PAULO (2007)

First project to

aggregate a residencial

and a commercial tower in

the same project

PARQUE ALFREDO VOLPI

SÃO PAULO (2007)

Very luxury

product, with unit

prices over US$ 5 mi

JK 1455

SÃO PAULO (2009)

LE PALAIS

RIO DE JANEIRO (2010)

Architecture inspired by two historical buildings in the complex;

The historical buildings were restored and adapted for the leisure

areas;

CENTRAL PARK MOOCA

SÃO PAULO (2010)

First mover in a industrial area of São Paulo (Mooca)

Innovative product, creating a park inside the project

All of its 560 units were sold in 10 days

LE PARC

SALVADOR / BAHIA (2012)

Largest Cyrela’s project;

18 towers, 1.138 units;

PSV of R$ 1 billion (2013

value);

In the middle of the project,

there is a 10,000 sqmt leisure

facility

RISERVA GOLF

RIO DE JANEIRO (2014)

Unique project in Barra da Tijuca;

2016 Olympics golf course;

Average sqm. Price: from R$ 25 thd to R$ 30 thd.

CYRELA BY PININFARINA

SÃO PAULO (2014)

Unique project in São Paulo (Vila Olímpia);

Price per sqm.: R$ 25 thd

ONE SIXTY

SÃO PAULO(2015)

CONTACT IR

Cyrela Brazil Realty S.A. Empreendimentos e Participações

Av. Presidente Juscelino Kubitschek, 1.455, 3rd Floor

São Paulo - SP – Brasil

CEP 04543-011

Investor Relations

Phone: (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's current view and estimates of future economic circumstances, industry conditions, company performance and the financial results of Cyrela Brazil Realty. These are just projections and, as such, exclusively based on management's expectations of Cyrela Brazil Realty regarding future business and continuous access to capital to finance the Company's business plan. Such future considerations rely substantially on changes in market conditions, government rules, competitor's pressure, segment performance and the Brazilian economy, among other factors, in addition to the risks presented on the released documents filed by Cyrela Brazil Realty, and therefore can be modified without prior notice.