REGISTRATION WITH CVM SHOULD NOT BE CONSTRUED AS AN EVALUATION OF THE COMPANY. COMPANY MANAGEMENT IS RESPONSIBLE FOR THE INFORMATION PROVIDED.

Transcription

1 REGISTRATION WITH CVM SHOULD NOT BE CONSTRUED AS AN EVALUATION OF THE COMPANY. COMPANY MANAGEMENT IS RESPONSIBLE FOR THE INFORMATION PROVIDED IDENTIFICATION 1 - CVM CODE 2 - COMPANY NAME 3 - CNPJ (Corporate Taxpayer s ID) INPAR S/A / NIRE (Corporate Registry ID) HEADQUARTERS 1 - ADDRESS RUA DAS OLIMPIADAS, 205-2º ANDAR CJ 21-A 2 - DISTRICT VILA OLIMPIA 3 - ZIP CODE CITY SÃO PAULO 5 - STATE SP 6 - AREA CODE TELEPHONE TELEPHONE TELEPHONE TELEX 11 - AREA CODE FAX FAX FAX ri.inpar@inpar.com.br INVESTOR RELATIONS OFFICER (Company Mailing Address) 1- NAME OTÁVIO AUGUSTO GOMES DE ARAÚJO 2 - ADDRESS RUA OLIMPIADAS, ANDAR CJ 21-A 3 - DISTRICT VILA OLIMPIA 4 - ZIP CODE CITY SÃO PAULO 6 - STATE SP 7 - AREA CODE TELEPHONE TELEPHONE TELEPHONE TELEX 12 - AREA CODE ri.inpar@inpar.com.br 13 - FAX FAX FAX ITR REFERENCE AND AUDITOR INFORMATION CURRENT YEAR CURRENT QUARTER PREVIOUS QUARTER 1 - BEGINNING 2 - END 3 - QUARTER 4 - BEGINNING 5 - END 6 - QUARTER 7 - BEGINNING 8 - END 1/1/ /31/ /1/2010 6/30/ /1/2010 3/31/ INDEPENDENT AUDITOR 10 - CVM CODE TERCO GRANT THOURNTON AUDITORES INDEPENDENTES SOC SIMPLES TECHNICIAN IN CHARGE ALEXANDRE DE LABETTA FILHO 12 TECHNICIAN S CPF (INDIVIDUAL TAXPAYER S ID)

2 IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / CAPITAL STOCK Number of Shares (in thousands) Paid-up Capital 1 CURRENT QUARTER 6/30/ PREVIOUS QUARTER 3/31/ SAME QUARTER, PREVIOUS YEAR 6/30/ Common 285, , , Preferred Total 285, , ,809 Treasury Stock 4 - Common Preferred Total COMPANY PROFILE 1 - TYPE OF COMPANY Commercial, Industrial and Other Types of Company 2 - STATUS Operational 3 - NATURE OF OWNERSHIP Foreign 4 - ACTIVITY CODE 3110 Holding Company - Construction, Building Materials and Interior Design 5 - MAIN ACTIVITY REAL ESTATE 6 - CONSOLIDATION TYPE Total 7 TYPE OF REPORT OF INDEPENDENT AUDITORS Unqualified COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS 1 - ITEM 2 - CNPJ (Corporate Taxpayer s ID) 3 - COMPANY NAME CASH DIVIDENDS APPROVED AND/OR PAID DURING AND AFTER THE QUARTER 1 - ITEM 2 - EVENT 3 APPROVAL 4 - TYPE 5 - DATE OF PAYMENT 6 - TYPE AND CLASS OF SHARE 7 - AMOUNT PER SHARE 2

3 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / SUBSCRIBED CAPITAL AND CHANGES IN THE CURRENT YEAR 1 - ITEM 2 - DATE OF CHANGE 3 - CAPITAL STOCK (In thousands of reais) 4 - AMOUNT OF CHANGE (In thousands of reais) 5 - NATURE OF CHANGE 7 - NUMBER OF SHARES ISSUED (thousand) 8 - SHARE PRICE WHEN ISSUED (in reais) 01 2/3/2010 1,228, ,000 Public Subscription 87, /3/2010 1,208,063 (20,488) Expenses with stock distribution INVESTORS RELATIONS OFFICER 1 DATE 2 SIGNATURE 8/12/2010 3

4 IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / BALANCE SHEET - ASSETS (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 6/30/ /31/ Total Assets 1,682,830 1,540, Current Assets 246, , Cash and Cash Equivalents 222, , Credits 19,176 19, Clients 165 4, Sundry Credits 19,011 15, Sundry Credits 13,775 9, Taxes Recoverable 5,236 6, Inventories 4,041 4, Other Deferred Selling Expenses Non-current Assets 1,436,806 1,247, Long-term Assets 193, , Sundry Credits 7,380 6, Clients Taxes Recoverable 6,547 6, Credits with Related Parties 186, , Direct and Indirect Associated Companies Subsidiaries 133, , Other Related Parties 52,923 49, Other Deferred Selling Expenses Permanent Assets 1,243, , Investments 1,209, , In Direct and Indirect Associated Companies In Direct and Indirect Associated Companies Goodwill In Subsidiaries In Subsidiaries - Goodwill Other Investments Property, Plant and Equipment 16,109 15, Intangible 17,365 16, Deferred Charges 0 0 4

5 IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / BALANCE SHEET - LIABILITIES (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 6/30/ /31/ Total Liabilities 1,682,830 1,540, Current Liabilities 238, , Loans and Financing 115, , Debentures Suppliers 1, Taxes, Fees and Contributions 9,427 9, Dividends Payable Provisions Debts with Related Parties 101, , Other 10,180 11, Accounts Payable 10,180 11, Non-current Liabilities 371, , Long-term Liabilities 371, , Loans and Financing 352, , Debentures Provisions 7,256 7, Related Party Debt Advance for Future Capital Increase Other 11,941 12, Labor and tax liabilities 11,941 12, Deferred Income Shareholders' Equity 1,072,325 1,057, Paid-up Capital 1,208,063 1,208, Capital Reserves Revaluation Reserves Own Assets Subsidiaries/Direct and Indirect Associated Companies Profit Reserves Legal Statutory For Contingencies Unrealized Profits Profit Retention Special Reserve for Undistributed Dividends Other Profit Reserves Assets Valuation Adjustments Securities Adjustments Accumulated Translation Adjustments Business Combination Adjustments Retained Earnings / Accumulated Losses (135,738) (150,114) Advances for Future Capital Increase 0 0 5

6 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / STATEMENT OF INCOME (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 4/1/2010 to 6/30/ /1/2010 to 6/30/ /1/2009 to 6/30/ /1/2009 to 6/30/ Gross Revenue from Sales and/or Services 2,435 4,712 1,832 4, Deductions from Gross Revenue (336) (589) (257) (468) 3.03 Net Revenue from Sales and/or Services 2,099 4,123 1,575 3, Cost of Goods and/or Services Sold (2,552) (8,797) (2,259) (4,271) 3.05 Gross Income (453) (4,674) (684) (626) 3.06 Operating Revenues/Expenses 14,829 23,541 (4,796) (22,705) Selling (571) (1,397) (1,511) (3,449) General and Administrative (12,417) (25,685) (14,120) (27,972) Financial 2,749 (490) 106 (890) Financial Revenues 6,155 9,853 4,286 8, Financial Expenses (3,406) (10,343) (4,180) (9,002) Other Operating Revenues 25 2,003 4,297 2, Other Operating Expenses Equity in the Earnings of Subsidiaries and Affiliated 25,043 49,110 6,432 7, Companies 3.07 Operating Income 14,376 18,867 (5,480) (23,331) 3.08 Non-Operating Income Revenues Expenses Income Before Tax/Holdings 14,376 18,867 (5,480) (23,331) 3.10 Provision for Income and Social Contribution Taxes Deferred Income Tax Statutory Holdings/Contributions Holdings Contributions Reversal of Interest on Equity Income/Loss for the Period 14,376 18,867 (5,480) (23,331) 6

7 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / STATEMENT OF INCOME (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 4/1/2010 to 6/30/ /1/2010 to 6/30/ /1/2009 to 6/30/ /1/2009 to 6/30/2009 No. SHARES, EX-TREASURY (in thousands) 285, , , ,809 EARNINGS PER SHARE (in reais) LOSS PER SHARE (in reais) ( ) ( ) 7

8 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / STATEMENT OF CASH FLOWS INDIRECT METHOD (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 4/1/2010 to 6/30/ /1/2010 to 6/30/ /1/2009 to 6/30/ /1/2009 to 6/30/ Net Cash from Operating Activities 729, ,540 (40,103) (100,565) Cash from Operations 1,415 (7,036) (9,997) (20,825) Net Income before Income Tax and Social 14,376 18, Contribution (5,480) (23,331) Depreciation and Amortization Allowance for Doubtful Accounts (202) 1, Provision for Contingencies 13 (1,755) 247 1, Deferred Taxes (19) Financial Charges on Financing 11,664 22,479 1,464 7,717 Equity in the Earnings of Subsidiaries and (25,043) (49,110) Affiliated Companies (6,432) (7,490) Changes in Assets and Liabilities 728, ,576 (30,106) (79,740) Trade Accounts Receivable 3,375 3,214 1,468 4, Properties for Sale 262 1, , Recoverable Taxes 736 2,730 (1,169) (1,760) Sundry Credits (4,107) (4,722) (9,102) (9,205) Credits with Related Parties 734, ,696 (14,354) (68,026) Credits with Partners Checking Accounts (3,588) 13,079 11,119 7, Prepaid Expenses Labor and Tax Liabilities (322) (1,943) 1,549 1, Suppliers 1, (4,267) (672) Accounts Payable (1,092) (439) 1,144 10, Real Estate Creditors (44) Related Parties (2,502) 10,306 (16,993) (25,042) Other Income Tax and Social Contribution Paid Net Cash from Investing Activities (894,414) (903,944) (32,566) (23,938) Investments (892,307) (900,519) (31,266) (23,350) Property and Equipment (828) (1,596) (1,034) (298) 8

9 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / STATEMENT OF CASH FLOWS INDIRECT METHOD (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 4/1/2010 to 6/30/ /1/2010 to 6/30/ /1/2009 to 6/30/ /1/2009 to 6/30/ Intangible Assets (1,279) (1,829) (266) (290) 4.03 Net Cash from Financing Activities 116, ,285 (6,727) 148, Loans and Financing 144, ,075 10,838 11, Loans and Financing Payment (28,118) (48,302) (17,565) (25,747) Capital Increase 0 259, , Exchange Variation on Cash and Cash Equivalents Increase (Decrease) in Cash and Cash Equivalents (48,117) 139,881 (79,396) 23, Opening Balance of Cash and Cash Equivalents 247,788 59, ,397 64, Closing Balance of Cash and Cash Equivalents 199, ,671 88,001 88,001 9

10 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FROM 4/1/2010 TO 6/30/2010 (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 CAPITAL STOCK 4 CAPITAL RESERVES 5 REVALUATION RESERVES 6 PROFIT RESERVE 7 RETAINED EARNINGS \ ACCUMULATED LOSSES 8 ASSETS VALUATION ADJUSTMENTS 9 TOTAL SHAREHOLDERS EQUITY 5.01 Opening Balance 1,208, (150,114) 0 1,057, Prior Years Adjustments Adjusted Balance 1,208, (150,114) 0 1,057, Income / Loss for the Period , , Allocations Dividends Interest on Equity Other Allocations Realization of Profit Reserves Assets Valuation Adjustments Securities Adjustments Accumulated Translation Adjustments Business Combination Adjustments Capital Increase/Decrease Set up/realization of Capital Reserves Treasury Shares Other Capital Transactions Other Closing Balance 1,208, (135,738) 0 1,072,325 10

11 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FROM 1/1/2010 TO 6/30/2010 (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 CAPITAL STOCK 4 CAPITAL RESERVES 5 REVALUATION RESERVES 6 PROFIT RESERVE 7 RETAINED EARNINGS \ ACCUMULATED LOSSES 8 ASSETS VALUATION ADJUSTMENTS 9 TOTAL SHAREHOLDERS EQUITY 5.01 Opening Balance 948, (154,605) 0 793, Prior Years Adjustments Adjusted Balance 948, (154,605) 0 793, Income / Loss for the Period , , Allocations Dividends Interest on Equity Other Allocations Realization of Profit Reserves Assets Valuation Adjustments Securities Adjustments Accumulated Translation Adjustments Business Combination Adjustments Capital Increase/Decrease 259, , Set up/realization of Capital Reserves Treasury Shares Other Capital Transactions Other Closing Balance 1,208, (135,738) 0 1,072,325 11

12 IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / CONSOLIDATED BALANCE SHEET - ASSETS (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 6/30/ /3/ Total Assets 2,301,686 2,244, Current Assets 1,381,858 1,273, Cash and Cash Equivalents 247, , Credits 647, , Clients 585, , Sundry Credits 61,525 57, Sundry Credits 53,799 49, Taxes Recoverable 7,726 8, Inventories 477, , Other 9,275 9, Deferred Selling Expenses 9,275 9, Non-current Assets 919, , Long-term Assets 855, , Sundry Credits 798, , Clients 63, , Taxes Recoverable 26,863 26, Inventories 707, , Credits with Related Parties 53,931 50, Direct and Indirect Associated Companies Subsidiaries Other Related Parties 53,098 49, Other 3,585 4, Deferred Selling Expenses 3,585 4, Permanent Assets 64,207 63, Investments In Direct and Indirect Associated Companies In Subsidiaries Other Investments Property, Plant and Equipment 46,776 47, Intangible 17,431 16, Deferred Charges

13 IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / CONSOLIDATED BALANCE SHEET - LIABILITIES (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 6/30/ /31/ Total Liabilities 2,301,686 2,244, Current Liabilities 495, , Loans and Financing 256, , Debentures 1,835 1, Suppliers 35,496 32, Taxes, Fees and Contributions 78,434 71, Dividends Payable Provisions Debts with Related Parties Other 122, , Accounts Payable 46,132 48, Real Estate Creditors 25,880 63, Advances from Customers 50,356 52, Non-current Liabilities 733, , Long-term Liabilities 733, , Loans and Financing 503, , Debentures 18,554 17, Provisions 18,008 19, Related Party Debt Advance for Future Capital Increase Other 193, , Accounts Payable 22,562 21, Real Estate Creditors 29, , Advances from Customers 93, , Labor and tax liabilities 47,433 50, Deferred Income Minority Interest Shareholders' Equity 1,072,325 1,057, Paid-up Capital 1,208,063 1,208, Capital Reserves Revaluation Reserves Own Assets Subsidiaries/Direct and Indirect Associated Companies Profit Reserves Legal Statutory For Contingencies Unrealized Profits Profit Retention Special Reserve for Undistributed Dividends Other Profit Reserves Assets Valuation Adjustments Securities Adjustments Accumulated Translation Adjustments Business Combination Adjustments Retained Earnings / Accumulated Losses (135,738) (150,114) Advances for Future Capital Increase

14 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / CONSOLIDATED STATEMENT OF INCOME (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 4/1/2010 to 6/30/ /1/2010 to 6/30/ /1/2009 to 6/30/ /1/2009 to 6/30/ Gross Revenue from Sales and/or Services 173, , , , Deductions from Gross Revenue (6,397) (12,585) (9,301) (12,683) 3.03 Net Revenue from Sales and/or Services 167, , , , Cost of Goods and/or Services Sold (123,774) (244,003) (127,296) (185,206) 3.05 Gross Income 43,717 83,685 29,202 51, Operating Revenues/Expenses (23,668) (53,344) (30,341) (68,442) Selling (14,597) (26,227) (12,911) (26,072) General and Administrative (14,653) (29,827) (15,976) (32,090) Financial 3,878 (1,290) (1,117) (5,578) Financial Revenues 11,672 18,822 5,997 12, Financial Expenses (7,794) (20,112) (7,114) (18,057) Other Operating Revenues 1,704 4, Other Operating Expenses 0 0 (337) (4,702) Equity in the Earnings of Subsidiaries and Affiliated Companies 3.07 Operating Income 20,049 30,341 (1,139) (16,472) 3.08 Non-Operating Income Revenues Expenses Income Before Tax/Holdings 20,049 30,341 (1,139) (16,472) 3.10 Provision for Income and Social Contribution Taxes (3,197) (5,745) (1,906) (3,454) 3.11 Deferred Income Tax (2,476) (5,729) (2,435) (3,405) 3.12 Statutory Holdings/Contributions Holdings Contributions Reversal of Interest on Equity Minority Interest Income/Loss for the Period 14,376 18,867 (5,480) (23,331) 14

15 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / CONSOLIDATED STATEMENT OF INCOME (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 4/1/2010 to 6/30/ /1/2010 to 6/30/ /1/2009 to 6/30/ /1/2009 to 6/30/2009 No. SHARES, EX-TREASURY (in thousands) 285, , , ,809 EARNINGS PER SHARE (in reais) LOSS PER SHARE (in reais) ( ) ( ) 15

16 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / CONSOLIDATED STATEMENT OF CASH FLOWS INDIRECT METHOD (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 4/1/2010 to 6/30/ /1/2010 to 6/30/ /1/2009 to 6/30/ /1/2009 to 6/30/ Net Cash from Operating Activities (214,464) (301,939) (57,530) (134,613) Cash from Operations 43,195 75,038 6,473 2,219 Net Income before Income Tax and Social 20,049 30, Contribution (5,480) (23,331) Depreciation and Amortization 715 1, Allowance for Doubtful Accounts 478 1, Provision for Contingencies (1,332) (2,998) 523 2, Provision for Works Guarantee 893 1, Deferred Taxes 3,111 6,336 7,477 9, Financial Charges on Financing 19,281 36,760 3,144 11,952 Equity in the Earnings of Subsidiaries and Affiliated Companies Changes in Assets and Liabilities (255,315) (372,066) (64,003) (136,832) Trade Accounts Receivable (93,055) (187,117) (58,389) (96,209) Properties for Sale (18,405) (44,834) 26,457 12, Recoverable Taxes (214) 1, (870) Sundry Credits (4,213) (10,505) (5,605) (7,856) Credits with Related Parties (29) (7) (246) 1, With Partners Checking Accounts (3,588) 12,904 11,119 7, Prepaid Expenses 1,148 1,819 2,536 2, Labor and Tax Liabilities (2,842) (5,377) (5,765) (10,022) Suppliers 3,325 9,098 (2,209) (7,604) Accounts Payable (1,892) (6,350) 5,193 10, Real Estate Creditors (125,581) (129,701) (27,394) (48,052) Related Parties (9) (1) (2,768) 1, Advances from Customers (9,960) (13,718) (7,067) (1,701) Other (2,344) (4,911) Income Tax and Social Contribution Paid (2,344) (4,911) Net Cash from Investing Activities (1,331) (1,424) 1,122 5,896 16

17 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / CONSOLIDATED STATEMENT OF CASH FLOWS INDIRECT METHOD (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 4/1/2010 to 6/30/ /1/2010 to 6/30/ /1/2009 to 6/30/ /1/2009 to 6/30/ Investments Property and Equipment (53) 402 1,132 6, Intangible Assets (1,278) (1,826) (10) (287) 4.03 Net Cash from Financing Activities 154, ,111 11, , Loans and Financing 206, ,154 50,988 70, Loans and Financing Payment (52,551) (97,555) (39,025) (51,230) Capital Increase 0 259, , Exchange Variation on Cash and Cash Equivalents Increase (Decrease) in Cash and Cash Equivalents (61,743) 108,748 (44,445) 53, Opening Balance of Cash and Cash Equivalents 279, , ,785 73, Closing Balance of Cash and Cash Equivalents 217, , , ,340 17

18 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FROM 4/1/2010 TO 6/30/2010 (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 CAPITAL STOCK 4 CAPITAL RESERVES 5 REVALUATION RESERVES 6 PROFIT RESERVE 7 RETAINED EARNINGS \ ACCUMULATED LOSSES 8 ASSETS VALUATION ADJUSTMENTS 9 TOTAL SHAREHOLDERS EQUITY 5.01 Opening Balance 1,208, (150,114) 0 1,057, Prior Years Adjustments Adjusted Balance 1,208, (154,114) 0 1,057, Income / Loss for the Period , , Allocations Dividends Interest on Equity Other Allocations Realization of Profit Reserves Assets Valuation Adjustments Securities Adjustments Accumulated Translation Adjustments Business Combination Adjustments Capital Increase/Decrease 259, Set up/realization of Capital Reserves Treasury Shares Other Capital Transactions Other Closing Balance 1,208, (135,738) 0 1,072,325 18

19 CVM BRAZILIAN SECURITIES AND EXCHANGE COMMISSION IDENTIFICATION 1 - CVM CODE COMPANY NAME INPAR S/A 3 - CNPJ (Corporate Taxpayer s ID) / CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FROM 1/1/2010 TO 6/30/2010 (R$ thousand) 1 - CODE 2 - DESCRIPTION 3 CAPITAL STOCK 4 CAPITAL RESERVES 5 REVALUATION RESERVES 6 PROFIT RESERVE 7 RETAINED EARNINGS \ ACCUMULATED LOSSES 8 ASSETS VALUATION ADJUSTMENTS 9 TOTAL SHAREHOLDERS EQUITY 5.01 Opening Balance 948, (154,605) 0 793, Prior Years Adjustments Adjusted Balance 948, (154,605) 0 793, Income / Loss for the Period , , Allocations Dividends Interest on Equity Other Allocations Realization of Profit Reserves Assets Valuation Adjustments Securities Adjustments Accumulated Translation Adjustments Business Combination Adjustments Capital Increase/Decrease 259, , Set up/realization of Capital Reserves Treasury Shares Other Capital Transactions Other Closing Balance 1,208, (135,738) 0 1,072,325 19

20 Notes to the quarterly information (parent company and consolidated) for the quarter and six-month period ended. (Amounts expressed in thousands of Reais, except where otherwise indicated) 1. Operating context The operations of Inpar S/A ( Company or Inpar ) comprise real estate development, construction of property, the purchase and sale of property that is either complete or still to be built, the rental and management of real estate, and the development of projects on land subdivisions. The major activity of the Company is the development of real estate ventures, particularly in the residential and commercial segments, through interests held in ventures, Specific Purpose Entities (SPEs), partners or consortia. 2. Basis for preparing and presenting financial statements The quarterly information presented hereby, parent company (Inpar S/A) and consolidated (Inpar S/A and its subsidiaries), contains accounting information corresponding to the quarter and six-month period ended and was prepared in accordance with the accounting practices adopted in Brazil, which take into consideration the provisions contained in the Brazilian Corporate Law - Law no. 6,404/76, as amended by Laws no. 11,638/07 and no. 11,941/09, on pronouncements, guidelines and interpretations issued by the Brazilian Accounting Pronouncements Committee (CPC), which were homologated by regulatory agencies. The consolidated financial statements comprise the financial statements of Inpar S/A and of its direct and indirect subsidiaries (individually controlled and under shared control or created for the specific purpose of administrating real estate ventures). Pursuant to the consolidation practices and applicable legal provisions, the Company proportionally consolidates the financial statements of the direct and indirect subsidiaries in which management is shared. In such cases, the consolidation incorporates the assets, liabilities and income accounts in proportion to the Company s ownership interest in the subsidiaries capital stock. Consequently, any minority interest has not been recorded. 20

21 The investments in subsidiaries, as well as the balances receivable and payable and the revenues, expenses and unrealized income, deriving from transactions among the companies have been eliminated from the consolidated financial statements. Changes in the accounting practices adopted in Brazil With the advent of Law no. 11,638/07 that updated the in order to facilitate the harmonization of Brazilian accounting practices with the International Financial Reporting Standards (IFRS), new accounting standards and technical accounting pronouncements have been issued by the Accounting Pronouncements Committee (CPC). In 2009, new technical pronouncements were issued by CPC and approved by CVM Resolutions, with mandatory application as of CVM Resolution no. 603/09 approved on November 10, 2009, authorized Publicly-Held Companies to present the quarterly information in 2010 in accordance with the accounting rules effective until December 31, Due to the complexity of calculations and the relevance of possible effects that the adoption of new pronouncements might produce on the financial statements, the Company decided to present the quarterly information for the quarter ended in accordance with the rules effective until December 31, The CPCs that may be applicable to the Company, considering its operations, as well as the main impacts thereof on the Company's financial statements, are shown below: CPC Scope 17 Construction agreements 18 Investments in associated companies and subsidiaries 20 Borrowing costs 22 Information by segment 24 Subsequent event 25 Allowances, contingent liabilities and assets 26 Presentation of the accounting statements 30 Revenues 32 Taxes on income 36 Consolidated financial statements 37 First-time adoption of the international accounting standards 38, 39 and 40 Financial instruments: recognition and measurement; presentation and evidencing 43 First-time adoption of the technical pronouncements CPC 15 to 40 ICPC 02 Agreement for construction of real estate ICPC 08 Recording of the dividends payment proposal ICPC 09 Individual financial statements, separate financial statements consolidated financial statements and application of the equity method The Company s Management is analyzing the impacts caused by the application of the new technical pronouncements issued by CPC, with emphasis on the analysis of Technical Interpretation ICPC 02 Agreement for construction of real estate, since the recording of revenue from sales agreements resulting from the development of properties may be changed significantly. According to ICPC 02, the Company must analyze whether it 21

22 should use the criteria according to CPC 30 - Revenues, or to CPC 17 Construction agreements for recognizing revenue from sales agreements resulting from the development of properties. Up to the period ended June 30, 2010, the Company adopted criteria for revenue recognition based on the rules set forth by CPC 17, i.e., it used the percentage of completion method for each venture. This percentage is measured by dividing the cost incurred by the total cost budgeted. However, if the application of ICPC 02 determines that CPC 30 is to be applied, revenue would probably be recognized upon the completion of the venture, when the following conditions are met: (a) the Entity has transferred to the buyer the most significant risks and benefits inherent to asset ownership; (b) the Entity is neither continuously involved in the management of assets to an extent usually associated with ownership nor has the effective control of said assets; (c) the amount of revenues can be measured with confidence; (d) it is likely that economic benefits associated with the transaction will be transferred to the Entity and; (e) expenses incurred or to be incurred in relation to the transaction can be measured with confidence. The application of this rule involves a significant change of systems and new calculations of previous years revenue and costs, and, therefore, the effect of the possible adoption was not yet known up to the disclosure of this quarterly information. If applicable, the Company will re-submit the 2010 quarterly information, compared to 2009 quarterly information, which will also be adjusted to the accounting rules approved in 2009, up to the date of presentation of the financial statements for the year ended December 31, Main accounting practices adopted 3.1. Use of estimates When preparing the quarterly information, assumptions are used for the recognition of estimates used to record certain assets, liabilities and other transactions, such as provision for contingencies, allowance for doubtful accounts, provision for guarantees, useful life of property and equipment, percentage of construction in progress, results from incorporation and sales of real estate, income tax on revenues - current and deferred, classification of current and non-current, among others. The actual results may differ from the amounts recognized in the present financial statements, when the events that resulted in the recognition of such estimates occur. Management periodically and timely monitors and reviews such estimates, as well as their assumptions Recognition of income Determination and recognition of income from real estate development and sales of properties Revenues, as well as the costs relating to real estate units sold, are recognized into income over the period of construction of the ventures, according to their 22

23 financial evolution, instead of on the date the sales agreements are signed or on the date the amounts relative to units sold are received, as provided for by OCPC For credit sales of completed units, income is recognized at the time sales are effective, regardless of the period of time for receiving the contractual amount. For sales of units under construction, the following procedures are followed: The cost incurred (including land cost, incorporation, construction and financial charges during the construction) corresponding to the units sold is fully recognized into the income; The percentage of the cost incurred of units sold (including land) is calculated in relation to their total budgeted cost, and the percentage is applied to the revenue from units sold, adjusted according to the conditions in the sale agreements, and on commission from sales thus determining the amount of revenues and selling expenses to be recognized. The amounts of revenue from sales recognized that are higher than the amounts effectively received from clients are recorded in current or non-current assets as accounts receivable. The amounts received in connection with the sale of real estate units that are higher than the amounts recognized in the revenues are accounted for as advances from customers in current liabilities. The pre-fixed interest and inflation adjustments on the balance of accounts receivable as from the delivery of keys are recognized on an accrual basis into the financial income account, when incurred. The financial charges and accounts payable due to the acquisition of land and the financial and real estate credit arrangements linked to real estate ventures during the period of development and construction are recognized into cost incurred and reflected in income at the time the real estate units of the venture to which they are directly linked are sold. Deferred selling expenses Selling expenses include advertising, publicity and promotion and are recognized into income in the same period in which they incur (distribution). The depreciation of the sales stands and decorated display apartments is recorded as selling expenses. Services provided and other activities Revenues, costs and expenses are recorded on an accrual basis Cash and cash equivalents These include positive balances in current accounts and financial investments with immediate liquidity and insignificant risk of changes in their market value. The financial investments included in cash equivalents are classified under the category financial assets at fair value through profit or loss. 23

24 3.4. Trade accounts receivable These are stated at their present and realization values, recognized according to the criterion described in Note 3.2. An allowance for doubtful accounts is recorded at an amount considered sufficient to cover estimated losses in realizing the accounts that are not guaranteed by collateral. With regard to the accounts that are guaranteed by collateral in the form of the real estate units sold, since the transfer of the corresponding deeds takes place upon the settlement and/or negotiation of the accounts receivable from customers, the provision of an allowance for doubtful accounts is considered unnecessary. The outstanding installments are adjusted according to the changes in the National Civil Construction Index (INCC) for the construction phase of the projects, and according to the changes in the General Market Price Index (IGP- M) and interest, after the delivery of keys for properties sold Properties for sale They are stated at construction or acquisition cost, or market value, whichever is the lowest. The cost of properties is comprised of expenses relating to: acquisition of land (cash or barter transactions evaluated at fair value), materials, labor and development (own or outsourced), as well as expenses with real estate development and financial charges deriving from loans and financing during the development and construction period, linked to the real estate ventures. The goodwill paid upon the acquisition of companies that own real estate for the development of projects is allocated at the cost of land for consolidation purposes and its corresponding amortization occurs in accordance with the yield curve of the project. Properties are stated at construction cost, which does not exceed its net realizable amount. For properties under construction, the amount in inventory corresponds to cost incurred of units not yet sold. Properties for sale are revised in order to evaluate the recovery of the book value, when events or changes in the macro economical scenarios indicate that the book value will not be recoverable. If the book value of a real estate venture is not recoverable, when compared to its realizable value through the expected cash flows, a provision is recorded. The Company capitalizes interest for the ventures during the construction phase, obtained through the National Housing System (SFH) and other credit lines that are used for financing the construction of ventures (limited to the amount of the respective financial expense), which are recognized in the income at the time the units are sold, the same criterion used for the other costs Investments When the Company holds more than a half of the voting capital stock of another company, the second one is considered a subsidiary. For cases which agreements guarantee the Company right to veto decisions that significantly 24

25 affect its businesses, warranting a shared control, these companies are considered as joint-controlled subsidiaries. The investments in subsidiaries and joint-controlled subsidiaries are recorded in parent company according to the equity accounting method Property and equipment These are recorded at acquisition, formation or construction cost, and include the sales stands and decorated display apartments of real estate ventures. The depreciation of the assets is calculated according to the straight-line method at rates mentioned in Note 11, and the depreciation of the sales stands is recorded under the Selling expenses account. The expenses incurred with construction of sales stands and decorated display apartments are subject to periodical impairment tests Intangible assets Intangible assets acquired and goodwill on the acquisition of ownership interest are initially recognized at acquisition cost and later deducted from the accumulated amortization (surplus value or determined future profitability) and losses of the recoverable amount (surplus value or undetermined future profitability), when applicable. Goodwill calculated by the parent company on companies acquisition is based on future profitability and has been amortized up to December 31, Assessment of the recoverable amount of assets (impairment test) Management annually reviews the net book value of assets in order to assess events or changes in operating or technological economic circumstances that may indicate an impairment or loss of its recoverable amount. When such events or changes are identified and the net book value exceeds the recoverable amount, a provision for impairment is recorded, adjusting the net book value to recoverable amount. Intangible assets with undefined useful life are annually tested for impairment, regardless of any indicators of loss of their recoverable amount Provision for guarantees Limited guarantees are provided for a period of up to 5 years, covering structural defects in the real estate ventures traded. Certain guarantees for the execution of the services (responsibilities and costs) are usually undertaken by subcontracted companies. The Company estimates that the amounts to be disbursed are insignificant and therefore it records an estimate in the event that such events occur, taking into account the term of the real ventures and their financial costs. 25

26 3.11. Real estate creditors and advances from customers due to exchange The obligations arising upon the acquisition of real estate are initially recognized at values corresponding to the contractual obligations undertaken and are inclusive of financial charges incurred, when applicable. The obligations relating to arrangements involving the exchange of land for real estate units to be built are stated at their fair value as advances from customers, and are recognized as income in the Revenue from sales of real estate units account, according to the criteria described in Note Loans and financing and debentures The financial funds obtained, which may be loans, financing or debentures, are initially recognized upon receiving the funds net of the transaction costs, and are stated at their amortized cost, that is, increased by charges and interest proportional to the period of time lapsed up to balance sheet date Contingent assets and liabilities and legal obligations The accounting practices used to record and disclose contingent assets and liabilities and legal obligations are as follows: Contingent assets are recognized only when there are collateral or favorable judicial decisions transited in rem judicatam. Contingent assets related to litigation that will probably be successful are only disclosed in explanatory notes, when applicable; Contingent liabilities are recorded when the losses are evaluated as probable and the amounts involved are measurable with sufficient reliability. Also, in cases where there is an intention to settle before the conclusion of proceedings, the amounts estimated for possible arrangements are added to the provisions; Legal obligations are recorded as liabilities, regardless of the evaluation of the probability of success of claims in which the Company has called into question the constitutionality of taxes Financial instruments and derivatives Financial instruments are only recognized as from the date in which the Company becomes part of the contractual provisions of the financial instruments. When recognized, are initially recorded at their fair value increased by costs of transaction that are directly imputed to their acquisition or issuance (when applicable). Their subsequent measurement occurs in each balance sheet date in accordance with the rules established for each type of classification of financial assets and liabilities as described in Note 24. Derivative financial instruments Derivative financial instruments are classified according to the Management intention in using them as instruments intended for hedge, or not. The operations carried out that are not in compliance with the criteria of hedge 26

27 effectiveness accounting are recorded at market value, with realized and unrealized earnings and losses recognized in the income for the year. Derivative financial instruments designed to be a part of a protection structure against hedge risks may be classified as: (i) fair value hedging and (ii) cash flow hedging. The derivative financial instruments intended for hedging and the respective hedging subject matters are adjusted at market value, in compliance with the following criteria: (i) Fair value hedging: the valuation or depreciation is recorded as a balancing item for the adequate revenue and expense account, net of tax effects, in the income for the period; (ii) Cash flow hedging: the valuation or depreciation is recorded as a balancing item for equity pickup in shareholders equity Other assets and liabilities (current and non-current) An asset is recognized in the balance sheet when it is probable that its future economic benefits will be generated on behalf of the Company and its cost or value can be reliably measured. A liability is recognized on the balance sheet when the Company has a legal or constituted obligation as result of an event in the past and it is probable that an economic resource will be required to settle it. When applicable, the corresponding charges and inflation or translation adjustments incurred are added. The provisions are recorded on the basis of the best estimates of the risk involved. The assets and liabilities are classified as current when their realization or settlement will probably occur within the next 12 months. Otherwise, they are stated as non-current Adjustment at present value The elements that integrate assets and liabilities arising from current or noncurrent transactions, when there are significant effects, are adjusted at present value. The accounts receivable from units to be built and the accounts payable due to land acquisition, when applicable, were adjusted at present value, based on the terms and interest rates applied at the time of the abovementioned transactions, aiming at reflecting the best current market evaluation, with regard to the value of money in time and the specific risks of assets and liabilities. Subsequently, such effects are reallocated to the revenue from sales of real estate, cost of properties and financial expenses and revenues lines, in the income, over the period of fruition of the interest in relation to the contractual cash flows. The average rate of financial charges, in which the Company incurs when of its obtainments, is utilized. The discount rate utilized is based on, and has as an assumption the, weighted average cost of obtainment the Company has at market values, disregarding the effect of inflation adjustments in the period. The inflation rate considered is the expectancy for IGP-M in the next 12 months - 27

28 allayed, disclosed by the Focus bulletin issued by the Brazilian Central Bank (BACEN) and is compared to the NTN-B remuneration, utilizing the higher rate calculated (Note 5) Corporate Income Tax (IRPJ) and Social Tax on Net Income (CSLL) The tax legislation allows revenues related to sales of real estate units to be taxed on a cash basis instead of based on the criterion described above for recognizing such revenues. IRPJ and CSLL are calculated in compliance with the criteria established by the tax legislation in force, at the regular rates of 15%, plus the additional 10%, for IRPJ and of 9% for CSLL. Some of the direct and indirect subsidiaries of the Company have elected the presumed profit tax system. For such companies, the IRPJ tax base is calculated at the rate of 8% (real estate development, including inflation adjustments) and 32% (provision of services and rentals), and the CSLL tax base is calculated at the rate of 12% (real estate development), 32% (provision of services and rentals) and 100% on financial revenues, on which the regular rates of the respective tax is applied. For those companies in which the accounting practice differs from the tax practice, a deferred federal tax liability or asset is calculated in order to reflect any temporary differences, as commented in Note Earnings per share Earnings per share are calculated by considering the number of outstanding shares on the closing date of the quarters. 4. Cash and cash equivalents R$ Parent Company Consolidated Description 6/30/2010 3/31/2010 6/30/2010 3/31/2010 Cash and bank s ,464 18,812 Financial investments 52,406 36,605 54,478 32,301 Securities 154, , , ,570 Provision for losses (8,250) (8,250) (8,250) (8,250) Total cash and cash equivalents 199, , , ,433 Escrowed cash and bank s - - 4,070 - Total cash and banks ,534 18,812 Escrowed financial investements 23,031 20,927 25,717 29,119 Total financial investments 222, , , ,740 Total availabilities 222, , , ,552 28

29 The provision for losses refers to the amounts invested in financial institutions under intervention and settlement by the Brazilian Central Bank (BACEN). The financial investments are substantially represented by Bank Deposit Certificates (CDBs) and referenced funds (Interbank Deposits - DI), remunerated at market average rates. The Company has invested R$154,998 in the investment fund Fundo de Investimento Multimercardo Crédito Privado Grand Paradiso, managed by BTG Pactual Serviços Financeiros S.A. DTVM, Banco BTG Pactual S.A. is responsible for the custody of the assets in the fund portfolio and the financial settlement of its operations. The funds are restricted and intended exclusively for the investments of certain investors. The Company holds 100% of the funds quotas, which substantially are exclusive investment funds. In this situation, in accordance with Regulatory Instructions no. 247/96 and 408/04 issued by the CVM, the Company has consolidated the funds in its financial statements with the purpose of illustrating the financial and equity position as a whole. 5. Trade accounts receivable These are composed of: R$ Parent Company Consolidated 6/30/2010 3/31/2010 6/30/2010 3/31/2010 Completed venture units , ,898 Ventures under construction Recognized revenue - - 1,004, ,321 Amounts received - - (500,726) (414,086) , ,235 Trade accounts receivable from recognized sale (a) , ,133 Management services Other accounts receivable - 2,853 2,724 3, ,236 2,958 3,611 Total trade accounts receivable 998 4, , ,744 (-) Non-current , ,787 Current 165 4, , ,957 The amounts are restated according to contractual clauses, as follows: Up to the delivery of the keys of the properties sold, according to the variance of the National Civil Construction Index (INCC); After the delivery of keys of properties sold, according to the variance of the General Market Price Index (IGP-M), increased by 12% per year, recognized on a pro rata day basis and recorded as financial revenues in income for the year. 29