Quarterly Information (ITR) JHSF Participações S.A.

Transcription

1 Quarterly Information (ITR) JHSF Participações S.A. March 31, 2017 with Review Report on Quarterly Information

2 JHSF Participações S.A. ITR Quarterly Information March 31, 2017 Índice Independent auditor s review report on quarterly information 3 Individual financial statements / Balance sheet - Assets 6 Individual financial statements / Balance sheet Liabilities 7 Individual financial statements / Statement of income 8 Individual financial statements / Statement of comprehensive income 9 Individual financial statements / Statement of cash flows - Indirect method 10 Individual financial statements / Statement of changes in shareholders equity / DMPL - 01/01/ /31/ Individual financial statements / Statement of changes in shareholders equity / DMPL - 01/01/ /31/ Individual financial statements / Statement of value added 13 Consolidated financial statements / Balance sheet Assets 14 Consolidated financial statements / Balance sheet Liabilities 15 Consolidated financial statements / Statement of income 16 Consolidated financial statements / Statement of comprehensive income 17 Consolidated financial statements / Statement of cash flows - Indirect method 18 Consolidated financial statements / Statement of changes in shareholders equity/dmpl - 01/01/ /31/ Consolidated financial statements / Statement of changes in shareholders equity/dmpl - 01/01/ /31/ Consolidated financial statements / Statement of value added 21 Notes to the quarterly information (parent company and consolidated) 53 2

3 São Paulo Corporate Towers Av. Presidente Juscelino Kubitschek, Vila Nova Conceição São Paulo SP - Brasil Tel: ey.com.br A free translation from Portuguese into English of Independent auditor s review report on Quarterly Information prepared in Brazilian currency in accordance with rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to Quarterly Information (ITR) Independent auditor s review report on quarterly information To the Shareholders, Directors and Managers of JHSF Participações S.A. São Paulo - SP We have reviewed the individual and consolidated interim accounting information contained in the Quarterly Information Form (ITR) of JHSF Participações S.A. (the Company ), for the quarter ended March 31, 2017, which comprises the balance sheet as of March 31, 2017, and the related statements of income, comprehensive income, changes in equity and cash flows for the three-month period then ended, including explanatory notes. Management is responsible for the preparation of these individual and consolidated interim accounting information in accordance with the Technical Pronouncement CPC 21 (R1) - Interim Financial Reporting ( CPC 21 ) and International Financial Reporting Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) ( IAS 34 ), which consider Guideline OCPC 04 related to the application of Technical Interpretation ICPC 02 to the entities engaged in the construction of real estate in Brazil, issued by the Accounting Pronouncements Committee ( CPC ) and approved by the Brazilian Securities and Exchange Commission ( CVM ) and by the Brazil s National Association of State Boards of Accounting ( CFC ), as well as for the presentation of this information consistently with standards issued by the CVM, applicable to the preparation of Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim accounting information based on our review. Scope of Review We conducted our review in accordance with Brazilian and International Standards on Review Engagements (NBC TR Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim accounting information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Uma empresa-membro da Ernst & Young Global Limited 3

4 Conclusion of individual and consolidated interim accounting information in accordance with the CPC 21 (R1) and IAS 34, which consider Guideline OCPC 04 related to the application of Technical Interpretation ICPC 02 to the entities engaged in the construction of real estate in Brazil, issued by CPC and approved by CVM and CFC Based on our review, nothing has come to our attention that causes us to believe that the individual and consolidated interim accounting information included in the quarterly information referred above is not fairly presented, in all material respects, in accordance with CPC 21 (R1) and IAS 34, which consider Guideline OCPC 04 related to the application of Technical Interpretation ICPC 02 to the entities engaged in the construction of real estate in Brazil, issued by the CPC and approved by CVM and CFC and applicable to the preparation of Quarterly Information ITR and presented consistently with the rules issued by CVM. Emphasis of a matter Guidance OCPC 04 As mentioned in Note 2.1, individual and consolidated interim accounting information were prepared in accordance with accounting practices adopted in Brazil (CPC 21 (R1)). The consolidated interim accounting information prepared in accordance with IFRS applicable to Brazil Real Estate Development Entities (IAS 34 for interim accounting information) additionally considers Guidance OCPC 04 issued by the Accounting Pronouncements Committee (CPC), wich addesses revenue recognition of this industry and involves matters related to the meaning and application of the concept of continuous transfer of risks, rewards and control in selling real estate units as described in Note 2.1. Our conclusion is not qualified in respect of this matter. Other matters Statements of value added We have also reviewed the individual and consolidated statements of value added for the three-month period ended on March 31, 2017, prepared under the responsibility of the Company's Management, whose presentation in interim accounting information is required by the standards issued by CVM, applicable to preparation of Quarterly Information Form (ITR), and considered supplementary information under IFRS, whereby no statements of value added presentation is required. These statements were submitted to the same review procedures previously described above and, based on our review, were are not aware of any fact that would make us believe that they were not prepared, in all material respects, in accordance with the overall individual and consolidated interim accounting information taken as a whole. 4

5 Financial statements and interim accounting information of prior periods audited and reviewed by another independent auditor The examination of the individual and consolidated balance sheet as of December 31, 2016 and the review of the individual and consolidated interim accounting information for the quarter ended on March 31, 2016, presented for comparison purposes, were conducted under the responsibility of other independent auditors who issued audit and review reports without modification, dated March 29, 2017 and May 14, 2016, respectively. São Paulo, May 15, ERNST & YOUNG Independent Auditors S.S. CRC-2SP015199/O-6 Marcos Alexandre S. Pupo Accountant CRC-1SP221749/O-0 5

6 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Individual financial statements / Balance sheet - Assets (In thousand of reais) Account Code Account Description Current Quarter 03/31/2017 Prior Year 12/31/ Total Assets 3,102,741 3,275, Current Assets 89, , Cash and Cash Equivalents , Cash and Cash Equivalents , Financial Investments 13,786 13, Financial Investments Measured at Fair Value 13,786 13, Bonds Available for Sale 13,786 13, Accounts Receivable 1, , Clients 1, , Taxes Recoverable 26,836 27, Current Taxes Recoverable 26,836 27, Prepaid Expenses 12, Other Current Assets 34,615 27, Others 34,615 27, Credits - Miscellaneous 21,156 13, Dividends Receivable 13,459 13, Noncurrent Assets 3,013,054 2,860, Long Term Realizable Asset 661, , Accounts Receivable 47,367 48, Clients 47,367 48, Credits with Related Parties 595, , Credits with Subsidiaries 547, , Credits with Other Related Parties 47,960 47, Other Noncurrent Assets 18,827 18, Credits - Miscellaneous 18,827 18, Investments 2,328,052 2,238, Equity Interest 2,328,052 2,238, Interest in Associated Companies 2,328,052 2,238, Fixed Assets 23,612 21, Operating Fixed Assets 23,612 21,124 6

7 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Individual financial statements/ Balance sheet - Liabilities (In thousand of reais) Account Code Account Description Current Quarter 03/31/2017 Prior Year 12/31/ Total Liabilities 3,102,741 3,275, Current Liabilities 302, , Social and Labor Liabilities 938 1, Social Liabilities 938 1, Suppliers 21,252 5, National Suppliers 21,252 5, Loans and Financing 28, , Loans and Financing 15,057 79, In National Currency 15,057 79, Debentures 12,967 82, Debentures 12,967 82, Other Liabilities 252, , Liabilities with Related Parties 199,432 78, Debts with Other Related Parties 199,432 78, Others 53,056 53, Mandatory Minimum Dividend Payable 53,056 53, Noncurrent Liability 612, , Loans and Financing 558, , Loans and Financing 270, , In National Currency 270, , Debentures 288, , Debentures 288, , Other Liabilities 53, , Liabilities with Related Parties 50, , Debts with Associated Companies 50, , Others 2, Debts - Miscellaneous 2, Provisions 405 2, Other Provisions 405 2, Provisions for unsecured liability of subsidiary 405 2, Equity 2,187,767 2,202, Realized Share Capital 915, , Realized Share Capital 915, , Capital Reserves 29,880 27, Treasury Shares (414) (414) Capital Reserve 30,294 28, Profits Reserve 1,267,971 1,267, Unrealized Profits Reserve 701, , Profit Retention Reserve 566, , Accumulated Profits/Losses (17,700) Equity Valuation Adjustments (7,638) (7,644) Adjustment at fair value of bonds available for sale (7,638) (7,644) 7

8 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Individual financial statements / Statement of income (In thousand of reais) Account Code Account Description Current Quarter 01/01/2017 to 03/31/2017 Same quarter of the prior year - 01/01/2016 to 03/31/ Operating Expenses/Revenue 8,023 (10,555) Selling Expenses (3) (4) General and Administrative Expenses (6,237) (9,245) Other Operating Revenues (650) 2, Equity Pick Up Income 14,913 (4,253) 3.05 Income Before Financial Income and Taxes 8,023 (10,555) 3.06 Financial Income (25,723) (27,332) Financial Revenues 2, Financial Expenses (28,516) (28,167) 3.07 Income Before Taxes on Profit (17,700) (37,887) 3.09 Net Income of Continued Operations (17,700) (37,887) 3.11 Income/Loss of the Period (17,700) (37,887) 3.99 Profit per Share - (Reais / Share) Basic Profit per Share ON -0, , Diluted Profit per Share ON -0, ,

9 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Individual financial statements / Statement of comprehensive income (In thousand of reais) Account Code Account Description Current Quarter 01/01/2017 to 03/31/2017 Same quarter of the prior year - 01/01/2016 to 03/31/ Net Profit for the Period (17,700) (37,887) 4.02 Other Comprehensive Income 6 (9,137) Conversion Adjustments - (9,221) Adjustment at value of bonds available for sale Comprehensive Income for the Period (17,694) (47,024) 9

10 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Individual financial statements / Statement of cash flows - Indirect method (In thousand of reais) Account Code Account Description Current Quarter 01/01/2017 to 03/31/2017 Same quarter of the prior year - 01/01/2016 to 03/31/ Operating Activities Net Cash 250,668 94, Cash Generated in Operations (8,419) (9,026) Profit Before Income Tax and SC of non-controlling shareholders (17,700) (37,887) Depreciation and amortization of assets of the fixed and intangible asset 1, Equity Pick Up (14,913) 4, Interests, monetary variations on loans 20,983 22, Statutory Provisions (Stock Options) 2,050 1, Variations of Assets and Liabilities 259, , Decrease (increase) of accounts receivable 284, Decrease (increase) in related parties (22,516) 85, Decrease (increase) in the other assets (17,652) Decrease (increase) in other liabilities 15,244 16, Investment Activities Net Cash (138,209) (50,282) Acquisition of assets from the fixed assets and investment property (3,649) (2,113) Prepayment for Future Capital Increase (134,560) (48,169) 6.03 Financing Activities Net Cash (173,396) (63,952) Payment of Debentures (principal + interests) (82,727) (100,697) Payment of Loans and Financing (principal + interests) (105,669) (8,255) Cash inflows from new loans and financing 15,000 45, Increase (Reduction) of Cash and Equivalents (60,937) (19,554) Initial Balance of Cash and Equivalents 61,710 20, Closing Balance of Cash and Equivalents 773 1,360 10

11 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Individual financial statements / Statement of changes in shareholders equity / DMPL - 01/01/ /31/2017 (In thousand of reais) Account Code Account Description Paid In Share Capital Capital Reserve, Granted Options and Treasury Shares Profits Reserve Accumulated Profits or Losses Other Comprehensive Income Equity 5.01 Initial Balances 914,183 27,830 1,267,971 - (7,644) 2,202, Adjusted Initial Balances 914,183 27,830 1,267,971 - (7,644) 2,202, Capital Transactions with the Partners 1,071 2, , Capital Increases 1, , Granted Options Recognized - 2, , Total Comprehensive Income (17,700) 6 (17,694) Net Profit for the Period (17,700) - (17,700) Other Comprehensive Income Adjustment at Fair Value of Bonds Available for Sale Closing Balances 915,254 29,880 1,267,971 (17,700) (7,638) 2,187,767 11

12 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Individual financial statements / Statement of changes in shareholders equity / DMPL - 01/01/ /31/2016 (In thousand of reais) Account Code Account Description Paid In Share Capital Capital Reserve, Granted Options and Treasury Shares Profits Reserve Accumulated Profits or Losses Other Comprehensive Income Equity 5.01 Initial Balances 914,183 20,551 1,580, ,001 2,647, Adjusted Initial Balances 914,183 20,551 1,580, ,001 2,647, Capital Transactions with the Partners - 1, , Granted Options Recognized - 1, , Total Comprehensive Income (37,887) (9,137) (47,024) Net Profit for the Period (37,887) - (37,887) Other Comprehensive Income (9,137) (9,137) Conversion Adjustments for the Period (9,221) (9,221) Adjustment at fair value of bonds available for Sale Closing Balances 914,183 21,748 1,580,220 (37,887) 123,864 2,602,128 12

13 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Individual financial statements / Statement of value added (In thousand of reais) Account Code Account Description Current Quarter 01/01/2017 to 03/31/2017 Same quarter of the prior year - 01/01/2016 to 03/31/ Revenues 1,383 4, Other Incomes 1,383 4, Supplies Acquired from Third Parties (3,811) (3,490) Materials, Energy, Third Party Services and Others (3,811) (3,490) 7.03 Gross Value-Added (2,428) Retentions (1,161) (979) Depreciation, Amortization and Loss of Value (1,161) (979) 7.05 Net Value-Added Produced (3,589) (326) 7.06 Value-Added Received in Transfer 17,706 (3,418) Financial Revenues 2, Others 14,913 (4,253) Equity Interest Income 14,913 (4,253) 7.07 Total Value-Added Distributable 14,117 (3,744) 7.08 Value-Added Distribution 14,117 (3,744) Personnel 2,435 5, Direct Remuneration 3,363 5, Benefits (1,046) F.G.T.S Taxes, Charges and Contributions Federal Municipal Remuneration on Third-Party Equity 28,607 28, Interests 28,516 28, Rents Equity Return (17,700) (37,887) Profits Retained / Loss for the Period (17,700) (37,887) 13

14 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Consolidated financial statements / Balance sheet - Assets (In thousand of reais) Account Code Account Description Current Quarter 03/31/2017 Prior Year 12/31/ Total Assets 4,447,718 4,750, Current Assets 824,823 1,162, Cash and Cash Equivalents 8,360 69, Cash and Cash Equivalents 8,360 69, Financial Investments 45,933 38, Financial Investments Measured at Fair Value 45,933 38, Bonds Available for Sale 24,582 17, Bonds and Securities 21,351 20, Accounts Receivable 159, , Clients 159, , Inventories 524, , Real Properties to Market 524, , Taxes Recoverable 30,804 29, Current Taxes Recoverable 30,804 29, Prepaid Expenses 19,608 6, Expenses with unearned sales 19,608 6, Other Current Assets 35,931 41, Others 35,931 41, Credits - Miscellaneous 35,931 41, Noncurrent Assets 3,622,895 3,587, Long Term Realizable Asset 415, , Accounts Receivable 188, , Clients 188, , Inventories 105, , Real Properties to Market 105, , Deferred Taxes 35,992 33, Deferred Income Tax and Social Contribution 35,992 33, Credits with Related Parties 48,336 42, Credits with Other Related Parties 48,336 42, Other Noncurrent Assets 36,115 36, Credits - Miscellaneous 36,115 36, Investments 2,369,700 2,331, Equity Interest 4,203 4, Interest in Associated Companies 4,203 4, Investment Properties 2,365,497 2,326, Fixed Assets 750, , Operating Fixed Assets 750, , Intangible Asset 88,002 87, Intangible Assets 88,002 87,993 14

15 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Consolidated financial statements / Balance sheet - Liabilities (In thousand of reais) Account Code Account Description Current Quarter 03/31/2017 Prior Year 12/31/ Total Liabilities 4,447,718 4,750, Current Liabilities 371, , Social and Labor Liabilities 28,499 27, Social Liabilities 28,499 27, Suppliers 67,942 50, National Suppliers 67,942 50, Tax Liabilities 16,412 18, Federal Tax Liabilities 16,412 18, Deferred Taxes and Contributions 16,412 18, Loans and Financing 101, , Loans and Financing 73, , In National Currency 73, , Debentures 27,493 84, Debentures 27,493 84, Other Liabilities 157, , Liabilities with Related Parties 12,041 74, Debts with Other Related Parties 12,041 74, Others 145, , Mandatory Minimum Dividend Payable 53,056 53, Prepayments from clients 65,813 76, Miscellaneous Creditors - 1, Liabilities with venture partners 26,440 26, Noncurrent Liability 1,871,608 1,923, Loans and Financing 1,113,493 1,207, Loans and Financing 500, , In National Currency 500, , Debentures 613, , Debentures 613, , Other Liabilities 230, , Liabilities with Related Parties 50,990 21, Debts with Associated Companies 50,990 21, Others 179, , Debts - Miscellaneous 1,733 2, Prepayments from clients 81,543 80, Liabilities with venture partners 96,084 96, Deferred Taxes 492, , Deferred Income Tax and Social Contribution 492, , Provisions 35,059 37, Tax, Social Security, Labor and Civil Provisions 35,059 37, Tax Provisions 12,632 14, Provisions for Legal Demands 22,427 23, Consolidated Equity 2,204,423 2,217, Realized Share Capital 915, , Capital Reserves 29,880 27, Treasury Shares (414) (414) Capital Reserves 30,294 28, Profits Reserve 1,270,675 1,270, Unrealized Profits Reserve 718, , Profit Retention Reserve 552, , Accumulated Profits/Losses (17,700) Equity Valuation Adjustments (7,650) (7,644) Adjustment at fair value of bonds available for sale (7,650) (7,644) Equity Interest of Non Controlling Shareholders 13,964 12,139 15

16 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Consolidated financial statements / Statement of income (In thousand of reais) Account Code Account Description Current Quarter 01/01/2017 to 03/31/2017 Same quarter of the prior year - 01/01/2016 to 03/31/ Revenue from Sale of Goods and/or Services 87, , Revenue from sale of Real Properties 6,141 8, Revenue with Shopping Centers and Commercial Leases 40,134 64, Revenue with Hotels 41,701 45, Cost of Goods and/or Services Sold (51,490) (66,814) With sales of Real Properties (7,102) (13,558) With shopping Centers and commercial leases (9,019) (16,244) With Hotels (35,369) (37,012) 3.03 Gross Income 36,486 51, Operating Expenses/Revenue 4,073 (14,401) Selling Expenses (1,726) (3,360) General and Administrative Expenses (28,105) (23,698) Other Operating Expenses 33,856 12, Other Operating Expenses (982) (3,371) Fair Value of Investment Properties 34,838 15, Equity Pick Up Income Equity Interest Income Income Before Financial Income and Taxes 40,559 36, Financial Income (44,654) (57,942) Financial Revenues 3,306 6, Financial Revenue 3,306 6, Financial Expenses (47,960) (64,724) Financial Expenses (47,960) (64,724) 3.07 Income Before Taxes on Profit (4,095) (21,200) 3.08 Income Tax and Social Contribution on Profit (13,343) (12,852) Current (852) (3,596) Deferred (12,491) (9,256) 3.09 Net Income of Continued Operations (17,438) (34,052) 3.10 Net Income of Discontinued Operations - (3,154) 3.11 Consolidated Profit/Loss for the Period (17,438) (37,206) Attributed to Partners of the Controlling Company (17,700) (37,480) Attributed to Non Controlling Partners Profit per Share - (Reais / Share) Basic Profit per Share ON -0, , Diluted Profit per Share ON -0, ,

17 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Consolidated financial statements / Statement of comprehensive income (In thousand of reais) Account Code Account Description Current Quarter 01/01/2017 to 03/31/2017 Same quarter of the prior year - 01/01/2016 to 03/31/ Consolidated Net Profit for the Period (17,438) (37,205) 4.02 Other Comprehensive Income 6 (9,137) Conversion Adjustments - (9,221) Adjustment at fair value of bonds available for Sale Consolidated Comprehensive Income for the Period (17,432) (46,342) Attributed to Partners of the Controlling Company (17,694) (46,616) Attributed to Non Controlling Partners

18 ITR - Quarterly information - 03/31/ JHSF PARTICIPAÇÕES S.A. Version: 1 Consolidated financial statements / Statement of cash flows - Indirect method (In thousand of reais) Account Code Account Description Current Quarter 01/01/2017 to 03/31/2017 Same quarter of the prior year - 01/01/2016 to 03/31/ Operating Activities Net Cash 263,465 72, Cash Generated in Operations (3,726) 25, Profit before income tax and social contribution of noncontrolling shareholders (4,095) (21,200) Depreciation and Amortization of assets of the fixed and intangible asset 3,123 5, Equity pick up (48) (431) Interests, monetary variations on loans 38,808 54, Capitalized interest on fixed assets in progress (7,938) Adjustments at present value Contingency Provisions (806) Statutory Provisions (Stock Options) 2,050 1, Provisions for Non-Performing Loan (116) 5, Fair Value of Investment Properties (34,838) (15,597) Income of Operations Intended for Sale - (3,154) Variations of Assets and Liabilities 269,140 48, Decrease (increase) of accounts receivable 313,415 37, Increase (increase) in Real Properties to Market (3,802) (20,665) Decrease (increase) in related parties (37,565) 48, Decrease (increase) in the other assets (8,072) 18, Decrease (increase) in other Liabilities 15,762 (23,604) Increase (Decrease) of Prepayment from Clients (9,026) (11,669) Decrease (increase) of expenses with unearned sales (1,572) (721) Others (1,949) (2,050) Income Tax and Contributions (1,949) (2,050) 6.02 Investment Activities Net Cash (12,622) (35,859) Acquisition of assets from the fixed assets and investment property (12,623) (35,859) Write off of assets of the Fixed and Intangible Asset Financing Activities Net Cash (312,136) (77,808) Cash Inflows from New Loans and Financing 15, , Payment of Debentures (principal + interests) (94,311) (96,792) Payment of Loans and Financing (principal + interests) (232,825) (265,594) 6.04 Exchange Rate Variation w/o Cash and Equivalents - (8,551) 6.05 Increase (Reduction) of Cash and Equivalents (61,293) (49,880) Initial Balance of Cash and Equivalents 69, , Closing Balance of Cash and Equivalents 8, ,497 18

19 ITR - Quarterly information - 09/30/ JHSF PARTICIPAÇÕES S.A. Version: 1 Consolidated financial statements / Statement of changes in shareholders equity / DMPL - 01/01/ /31/2017 (In thousand of reais) Account Code Account Description Paid In Share Capital Capital Reserve, Granted Options and Treasury Shares Profits Reserve Accumulated Profits or Losses Other Comprehensive Income Equity Equity Interest of Non Controlling Shareholders Consolidated Equity 5.01 Initial Balances 914,183 27,830 1,270,675 - (7,645) 2,205,043 12,139 2,217, Adjusted Initial Balances 914,183 27,830 1,270,675 - (7,645) 2,205,043 12,139 2,217, Capital Transactions with the Partners 1,071 2, ,121 1,563 4, Capital Increases 1, ,071-1, Granted Options Recognized - 2, ,050-2, Decrease in Equity of non controlling shareholders ,563 1, Total Comprehensive Income (17,700) (6) (17,706) 262 (17,444) Net Profit for the Period (17,700) - (17,700) 262 (17,438) Other Comprehensive Income (6) (6) - (6) Adjustment at Fair Value of Bonds Available for Sale (6) (6) - (6) 5.07 Closing Balances 915,254 29,880 1,270,675 (17,700) (7,651) 2,190,458 13,964 2,204,422 19

20 ITR - Quarterly information - 09/30/ JHSF PARTICIPAÇÕES S.A. Version: 1 Consolidated financial statements / Statement of changes in shareholders equity / DMPL - 01/01/ /31/2016 (In thousand of reais) Account Code Account Description Paid In Share Capital Capital Reserve, Granted Options and Treasury Shares Profits Reserve Accumulated Profits or Losses Other Comprehensiv e Income Equity Equity Interest of Non Controlling Shareholders Consolidated Equity 5.01 Initial Balances 914,183 20,551 1,577, ,001 2,645,050 19,879 2,664, Adjusted Initial Balances 914,183 20,551 1,577, ,001 2,645,050 19,879 2,664, Capital Transactions with the Partners - 1, ,197-1, Granted Options Recognized - 1, ,197-1, Total Comprehensive Income (37,479) (9,137) (46,616) 274 (46,342) Net Profit for the Period (37,479) - (37,479) 274 (37,205) Other Comprehensive Income (9,137) (9,137) - (9,137) Conversion Adjustments for the Period (9,221) (9,221) - (9,221) Adjustment at Fair Value of Bonds Available for Sale Closing Balances 914,183 21,748 1,577,315 (37,479) 123,864 2,599,631 20,153 2,619,784 20

21 ITR - Quarterly information - 09/30/ JHSF PARTICIPAÇÕES S.A. Version: 1 Consolidated financial statements / Statement of value added (In thousand of reais) Account Code Account Description Current Quarter 01/01/2017 to 03/31/2017 Same quarter of the prior year - 01/01/2016 to 03/31/ Revenues 89, , Sales of Commodities, Goods and Services 87, , Other Incomes 1, Supplies Acquired from Third Parties (87,283) (76,405) Costs of Goods, Comm. and Servs. Sold (51,490) (66,814) Materials, Energy, Third Party Services and Others (35,793) (9,591) 7.03 Gross Value-Added 2,076 41, Retentions (3,123) (5,333) Depreciation, Amortization and Loss of Value (3,123) (5,333) 7.05 Net Value-Added Produced (1,047) 36, Value-Added Received in Transfer 38,192 23, Financial Revenues 3,306 6, Others 34,886 16, Equity Interest Income Equity Interest of Non Controlling Shareholders Variation in Fair Value of Investment Properties 34,838 15, Total Value-Added Distributable 37,145 59, Value-Added Distribution 37,145 59, Personnel 5,073 12, Direct Remuneration 5,734 11, Benefits (809) F.G.T.S Taxes, Charges and Contributions 1,289 15, Federal 1,057 13, State - 1, Municipal 232 1, Remuneration on Third-Party Equity 48,221 67, Interests 47,960 64, Rents 261 3, Equity Return (17,438) (37,205) Profits Retained / Loss for the Period (17,700) (37,479) Non Controlling Shareholders' share in Retained Profits

22 1Q17 Results Conference Call May 16, 2017 In Portuguese 2:30 p.m. (Brasília time) 1:30 p.m. (New York time) Phone: +55 (11) Code: JHSF In English (simultaneous translation) 1:30 p.m. (New York time) 2:30 p.m. (Brasília time) Phone: +1 (646) Code: JHSF 22 Investor Relations Thiago Alonso de Oliveira CFO and IRO Bruna Gambôa Manager Fernanda Shiraishi Assistant Phone: +55 (11) Website: ri.jhsf.com.br

23 FIRST QUARTER OF 2017 EARNINGS RELEASE São Paulo, May 15, 2017 JHSF Participações S.A. (BM&FBovespa: JHSF3) announces its operating and financial results for the first quarter (1Q17) of All the following information, unless otherwise indicated, is presented in Brazilian Reais (R$), based on consolidated figures and in accordance with Brazilian corporate law and International Financial Reporting Standards (IFRS). All percentage changes between periods, unless otherwise indicated, are nominal. A significant part of the variations presented in this release for the Recurrent Income business came from the sale of stakes in two shopping malls, concluded in 4Q16. 1Q16 results were not adjusted for this effect. We present proforma tables for 1Q16, which excludes this effect, only at page 4. The information on this earnings release has not been audited by the independent auditors. We recommend this material to be read in conjunction with the Explanatory Notes to the Quarterly Information (ITR). All amounts have been rounded to the nearest thousand, unless otherwise indicated, generating rounding of the final unit only and resulting in immaterial divergences. Margins are calculated as a percentage of net revenue, except when otherwise indicated. All the acronyms used herein are defined in the Glossary on the final page of this document. HIGHLIGHTS Shopping Malls: Total Sales +3.0%, SSS +2.1%, SAS +2.8%, SSR +3.0% and SAR +0.6% vs. 1Q16; Average Couvert increased 2.3% vs. 1Q16; Reduction in Consolidated Financial Expenses (-26% vs. 1Q16), due to JHSF s deleverage process. Consolidated Result Consolidated Information (R$ million) ¹ 1Q17 1Q16 Var. % Gross Revenue % Taxes on Revenue (11.8) (11.7) 1% Net Revenue % COGS (51.5) (66.8) -23% Gross Profit % Margin (% of Net Revenue) 41% 43% -2 p.p. Operating Expenses (30.8) (30.0) 3% Commercial Expenses (1.7) (3.4) -49% Administrative Expenses (28.1) (23.7) 19% Other Operating Expenses (0.9) (2.9) -68% Fair Value of Investment Properties % Operating Income % EBITDA % Adjusted EBITDA % Margin (% of Net Revenue) 19% 27% -8 p.p. Financial Result (44.7) (57.9) -23% Income Taxes and Social Contribution (13.3) (12.9) 4% Discontinued Operations - (3.2) -100% Net Income (17.4) (37.2) -53% Margin (% of Net Revenue) -20% -32% 12 p.p. ¹ The reconciliation of Adjusted EBITDA is later presented in this release. 23

24 Results by Business 1 1Q17 Income Statement (R$' million) Recurring Hotels and RE Income Restaurants Development Holding Consolidated Gross Revenue Taxes on Revenue (6.5) (5.5) (11.8) Net Revenue COGS (9.0) (35.4) (7.1) - (51.5) Gross Profit (1.0) Margin (% of Net Revenue) 78% 15% % Operating Expenses (11.1) (4.8) (1.8) (13.0) (30.8) Commercial Expenses (1.4) - (0.3) (0.1) (1.8) Administrative Expenses (8.1) (4.1) (3.5) (12.3) (28.0) Other Operating Expenses (1.5) (0.7) 2.0 (0.6) (0.9) Fair Value of Investment Properties Operating Income (2.8) (13.0) 40.6 Adjusted EBITDA (4.0) (5.2) 16.7 Margin (% of Net Revenue) 58% 7% % Net Financial Result (44.7) Income Taxes and Social Contribution (13.3) Discontinued Operations - Net Income (17.4) Margin (% of Net Revenue) -20% [The remainder of this page was intentionally left blank] 1 From 1Q17, JHSF began to allocate expenses previously accounted in Shared Services Center Holding directly to each business unit. 24

25 Recurring Income Results A significant part of the variations presented in this document for the Recurrent Income business came from the sale of stakes in two shopping malls, concluded in 4Q16. The 1Q16 results were not adjusted for this effect. Income Statement (R$' million) 1Q17 1Q16 Var. % 1Q17 1Q16 Var. % 1Q17 1Q16 Var. % 1Q17 1Q16 Var. % Gross Revenue % % % % Taxes on Revenue (5.3) (5.8) -10% (0.6) (0.7) -13% (0.6) (1.3) -52% (6.5) (7.8) -17% Net Revenue % % % % COGS (6.5) (10.5) -38% (1.6) (3.2) -50% (0.9) (2.6) -65% (9.0) (16.2) -44% Gross Profit % % % % Margin (% of Net Revenue) 82% 82% 0 p.p. 48% 24% 24 p.p. 43% 15% 28 p.p. 78% 75% 3 p.p. Operating Expenses (4.7) (4.0) 19% (4.1) (4.0) 4% (2.3) (2.5) -11% (11.1) (10.5) 6% Commercial Expenses (1.0) (0.9) 9% (0.0) (0.0) 44% (0.4) (0.4) 0% (1.4) (1.3) 6% Administrative Expenses (2.4) (1.3) 89% (4.1) (2.9) 44% (1.6) (2.1) -25% (8.1) (6.3) 30% Other Operating Expenses (1.3) (1.8) -28% (0.0) (1.1) -99% (0.3) - - (1.5) (2.9) -46% Fair Value of Investment Properties % (3.4) % Operating Income % (6.1) (3.0) 103% (1.6) (2.1) -23% % (-) Depreciation % % % % EBITDA % (5.9) (2.2) 166% (1.5) (2.0) -24% % (-) Fair Value of Investment Properties (38.2) (15.6) 145% (34.8) (15.6) 123% (+/-) Other Adjustments % % Adjusted EBITDA % (2.5) (2.2) 14% (1.5) (1.8) -16% % Margin (% of Net Revenue) 77% 80% -3 p.p % 64% -6 p.p. NOI % Margin (% of Gross Revenue) 73% 77% -5 p.p. Shopping Malls Other Service Retail TOTAL Operating Indicators: Shopping Malls Operating Highlights ¹ 1Q17 1Q16 Var. % Total GLA (sq.m) 147, , % JHSF GLA (sq.m) 103, , % Total Malls Sales (R$' million) % Same Store Sales (SSS) % 2.1% 2.3% Same Area Sales (SAS) % 2.8% 3.0% Same Store Rent (SSR) % 3.0% 6.3% Same Area Rent (SAR) % 0.6% 5.5% Occupancy Cost (%) 11.7% 11.9% Leased Area (%) 93.1% 92.2% ¹ The decline in GLA is due to the sale of 33% of SCJ. The stake in SMT was fully adjusted. 25

26 Portfolio Location % JHSF Total GLA (sq.m) JHSF GLA (sq.m) Cidade Jardim Shopping Mall São Paulo - SP 67.0% 37,644 25,221 Bela Vista Shopping Mall Salvador - BA 51.0% 50,241 25,623 Ponta Negra Shopping Mall Manaus - AM 80.0% 35,249 28,199 Catarina Fashion Outlet São Roque - SP 100.0% 24,038 24,038 TOTAL 147, ,081 Consolidated Results Proforma Consolidated Information (R$ million) 1Q17 1Q16 Proforma Var. % Gross Revenue % Taxes on Revenue (11.8) (9.4) 25% Net Revenue % COGS (51.5) (62.1) -17% Gross Profit % Margin (% of Net Revenue) 41% 35% 6 p.p. Operating Expenses (30.8) (27.7) 11% Commercial Expenses (1.7) (2.9) -40% Administrative Expenses (28.1) (23.0) 22% Other Operating Expenses (0.9) (1.8) -49% Fair Value of Investment Properties % Operating Income % EBITDA % Adjusted EBITDA % Margin (% of Net Revenue) 19% 17% 2 p.p. Financial Result (44.7) (48.4) -8% Income Taxes and Social Contribution (13.3) (14.0) -5% Discontinued Operations - (3.2) -100% Net Income (17.4) (36.8) -53% Margin (% of Net Revenue) -20% -38% 19 p.p. 26

27 Recurring Income Results Proforma Income Statement (R$' million) Shopping Malls Other Service Retail 1Q6 1Q17 Proforma Var. % 1Q17 1Q16 Var. % 1Q17 1Q16 Var. % 1Q17 TOTAL 1Q6 Proforma Var. % Gross Revenue % % % % Taxes on Revenue (5.3) (3.5) 50% (0.6) (0.7) -13% (0.6) (1.3) -52% (6.5) (5.5) 18% Net Revenue % % % % COGS (6.5) (5.7) 14% (1.6) (3.2) -50% (0.9) (2.6) -65% (9.0) (11.5) -22% Gross Profit % % % % Margin (% of Net Revenue) 82% 84% -2 p.p. 48% 24% 24 p.p. 43% 15% 28 p.p. 78% 73% 5 p.p. Operating Expenses (4.7) (1.6) 185% (4.1) (4.0) 4% (2.3) (2.5) -11% (11.1) (8.2) 36% Commercial Expenses (1.0) (0.4) 137% (0.0) (0.0) 44% (0.4) (0.4) 0% (1.4) (0.8) 68% Administrative Expenses (2.4) (0.6) 323% (4.1) (2.9) 44% (1.6) (2.1) -25% (8.1) (5.6) 47% Other Operating Expenses (1.3) (0.7) 95% (0.0) (1.1) -99% (0.3) - - (1.5) (1.8) -12% Fair Value of Investment Properties % (3.4) % Operating Income % (6.1) (3.0) 103% (1.6) (2.1) -23% % (-) Depreciation 0.4 (0.2) -269% % % % EBITDA % (5.9) (2.2) 166% (1.5) (2.0) -24% % (-) Fair Value of Investment Properties (38.2) (22.7) 69% (34.8) (22.7) 54% (+/-) Other Adjustments % % Adjusted EBITDA % (2.5) (2.2) 14% (1.5) (1.8) -16% % Margin (% of Net Revenue) 77% 86% -9 p.p % 62% -4 p.p. NOI % Margin (% of Gross Revenue) 73% 81% -8 p.p. 27

28 Management Comments 2 Strategy JHSF Participações S.A. ( Company or JHSF ) invests in Brazil in businesses focused on high-income individuals, developing and managing unique and innovative projects in shopping mall, hotel and restaurant, real estate development and executive airport sectors. The decision-making process of JHSF s Management is based on the balance between: (i) the strengthening of Operating Income; (ii) the streamlining of capital allocation; and (iii) initiatives to reduce the cost of equity and thirdparty capital. The combination of these measures contributes to the value creation we intend to deliver to our shareholder and other stakeholders. JHSF maintains assets to be developed, with value creation potential, which will be implemented as long as market conditions and capital structure are appropriate. The Company s Management has invested, and will continue investing, in internal mechanisms and procedures related to integrity, audit and incentive to the reporting of irregularities, and the effective application of codes of ethics and conduct. Our Business Recurring Income 3 : Comprises (i) four shopping malls Cidade Jardim ( SCJ ), Bela Vista ( SBV ), Ponta Negra ( SPN ) and Catarina Fashion Outlet ( CFO ); (ii) shopping mall services administration, parking and supply of energy and telecommunications; and (iii) high-end retail brands. Hotels and Restaurants: Hotel and restaurant operations under the Fasano brand, including four hotels in operation and five already contracted (Angra dos Reis, Belo Horizonte, Salvador, Trancoso and Miami), as well as 14 restaurants (São Paulo, Rio de Janeiro and Brasilia). Real Estate Development: Business division focused on selling the existing inventory and managing real estate receivables. We are currently considering the possibility of selectively resuming projects to be developed on the existing landbank in the surroundings of Parque Cidade Jardim and Residência Cidade Jardim, close to SCJ and targeted at high-income individuals. Executive Airport: Refers to São Paulo Catarina Executive Airport, under construction. [The remainder of this page was intentionally left blank] 2 Disclaimer: Management makes forward-looking statements concerning future events that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of its Management, and on information currently available to the Company. Forward-looking statements include statements regarding JHSF s intentions, estimates or current expectations or those of its Board of Directors or Executive Officers. Forward-looking statements also include information concerning the Company s possible or presumed future operating results, as well as statements preceded by, followed by, or including the words believes, may, will, continues, expects, envisages, intends, plans, estimates or similar expressions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. JHSF s future results and the creation of shareholder value may differ materially from those expressed in or suggested by these forwardlooking statements. Many of the factors that will determine these results and values are beyond the Company s ability to control or predict. 3 The sale of Shopping Metrô Tucuruvi ( SMT ) was concluded on December 21,

29 Company s Operational Environment in 1Q17 The consumer confidence index (ICC) ended 1Q17 with a rise of 3.5 points (March), reaching its highest level since December , reflecting the resumption of the upward trend in consumer confidence attributed to the economic recovery. The shopping mall segment has been following consumers behavior above described. In March, the index measuring the number of visits to shopping malls (IVSC) grew by 9.1% when compared to the previous month, due to the withdrawal of inactive FGTS accounts in the period. In comparison to March 2016, this figure dropped by 0.47%, led by the Southeast region, which recorded the highest decline (-1.49%) 5. In the hotel sector, the three indicators monitored by the Company felt in the 1Q17: occupancy rate by -1.5%, average daily rate by -5.7% and RevPAR by -7.1%. The analysis by region also showed reductions in the three indicators in the Southeast region (occupancy rate by -3.5%, average daily rate by -7.8% and RevPAR by -11.0%) 6. In February 2017 (latest information available), the real estate segment recorded a year-on-year decline in the total number of residential units sold (-4.5%) and an increase in the number of launched units (+4.7%) 7. Shopping Malls Consolidated retailer sales rose 3.0% year-on-year, led by the performance of São Paulo State. In Manaus (SPN), the recovery of commercial activities was slower when compared to the other regions where JHSF operates. The consolidated operating indicators had a positive performance in comparison with 1Q16: SSS +2.1%, SAS +2.8%, SSR +3.0% and SAR +0.6%, highlight to the positive performances of SCJ and CFO. Hotels and Restaurants In 1Q17, the Hotel and Restaurant business was impacted by the current social and economic scenario in the city of Rio de Janeiro, impacting both divisions: Hotels (Average Daily Rate -8.5%, Occupancy Rate -10.8% and RevPAR %) and Restaurants (Average Couvert +2.3% and Couverts Sold fell 1.6%, mainly in the Rio de Janeiro operations). Real Estate Development In 1Q17, this business s net contracted sales totaled R$4.4 million and were positively impacted by the sales performance of Horto Bela Vista (R$7.9 million), which offset the cancellations registered in Fazenda Boa Vista (net contracted sales negative by R$4.3 million). Executive Airport Currently in the pre-operational phase, the São Paulo Catarina Executive Airport project will have a runway of approximately 2,400 meters. The project s estimated CAPEX to be disbursed is around R$50 million. 4 Source: Sondagem do Comercio Índice de Confiança do Comércio FGV IBRI March 2017 report. 5 Source: FX Retail Analytics Índice de Visita em Shopping Centers Published on April 5, Source: infohb 116 Edition March 2017 Forum of Brazilian Hotel Operators. 7 Source: Pesquisa do Mercado Imobiliário report February 2017 Secovi-SP (São Paulo State Home Builders Association). 29

30 Capital Market Other Information 1Q17 1Q16 Var. % 4Q16 3Q16 2Q16 Shares Outstanding EOP (million) % Closing Price (R$) % Market value (R$ million) 1, % Average volume (R$ thousand) 3,328 1, % 849 1, Average number of trades daily 1, % [The remainder of this page was intentionally left blank] 30

31 Management Board of Directors José Auriemo Neto Chairman Carlos Eduardo Andreoni Ambrósio Independent Member Luiz Gonzaga de Mello Belluzo Independent Member Osvaldo Roberto Nieto Independent Member Richard Barczinksi Independent Member Eduardo Silveira Camara Member Thiago Alonso de Oliveira Member Statutory Management Eduardo Silveira Camara Chief Executive Officer Wilmar Silva Rodrigues Executive Vice President Thiago Alonso de Oliveira Chief Financial and Investor Relations Officer Fiscal Council Antonio Carlos Rovai Sitting Member Ariovaldo dos Santos Sitting Member Héctor José Alfonso Sitting Member Bruno Meirelles Salotti Alternate Member Clovis Antônio Pereira Pinto Alternate Member Francisco Montagner Neto Alternate Member Statutory Audit Committee Ademir José Scarpin Sitting Member Osvaldo Roberto Nieto Sitting Member Renato Ferreira Barbosa Sitting Member The Quarterly Information were analyzed and approved for disclosure by the Board of Directors at the meeting held on May 15, 2017, having been previously examined by a meeting of the Fiscal Council and Statutory Audit Committee on May 12, The comments on the Company s consolidated performance are available on the investor relations website ri.jhsf.com.br. Audit Pursuant to CVM Instruction 381/03, we hereby declare that the payments made by JHSF and its subsidiaries to Ernst & Young Auditores Independentes, in contracts initiated after the definition of the Company s independent auditors hiring, are exclusively related to the external audit of the Quarterly Information. Arbitration The Company is bound to arbitration by the Market Arbitration Chamber, pursuant to the Arbitration Clause in its Bylaws. 31

32 Comments on the 1Q17 Consolidated Financial Statements Gross and Net Revenue Revenue (R$' million) 1Q17 1Q16 Var. % Gross Revenue % Recurring Income % Hotels and Restaurants % RE Development % Net Revenue % Recurring Income % Hotels and Restaurants % RE Development % In Recurring Income 8, the 1Q16 Gross Revenue above presented included SMT (100% sold on December 21, 2016) and the totality of SCJ (33% was sold on December 29, 2016), as detailed in the Shopping Mall division. In this division, due to the portfolio maturation, there was a reduction in Key Money Revenue booking. The decline in Gross Revenue from other divisions was a result of (i) the sale of certain retail activities (international brands), and (ii) the decline in energy prices, affecting Other Services. The Gross Revenue reduction in the Hotel and Restaurant business is associated with the current difficulties in the city of Rio de Janeiro. Gross Revenue from Real Estate Development consisted of the following: (i) new sales (R$16.1 million); (ii) receivables portfolio monetary adjustment (R$2.0 million); and (iii) the deduction of R$13.7 million due to net cancellations registered in the Horto Bela Vista (R$4.6 million) and Fazenda Boa Vista (R$9.1 million) projects. Cost of Goods and Services Sold (COGS) Cost of Goods Sold - COGS (R$' million) 1Q17 1Q16 Var. % Consolidated COGS % Recurring Income % Hotels and Restaurants % RE Development % During 1Q17, consolidated COGS declined in all business units, led by the reduction in the Recurring Income business, due to: (i) the sale of stakes in shopping malls, already described in this release; and (ii) operating efficiency gains in the business. In the Hotel and Restaurant business, the reduction in COGS is in line with the decline in Revenues presented in this period. In the Real Estate Development business, the drop in COGS was due to cancellations registered in this quarter and the end of construction works that were occurring in 1Q16. 8 Recurring Income consists of: (i) Shopping Malls, (ii) Other Services and (iii) Retail. 32

33 Gross Profit Gross Profit (R$' million) 1Q17 1Q16 Var. % Consolidated Gross Profit % Margin (% of Net Revenue) 41% 43% Recurring Income % Margin (% of Net Revenue) 78% 75% Hotels and Restaurants % Margin (% of Net Revenue) 15% 19% RE Development (1.0) (5.2) -81% Margin (% of Net Revenue) -16% -62% Operating Expenses Operating Expenses (R$' million) 1Q17 1Q16 Var. % Consolidated Operating Expenses (30.8) (30.0) 3% Recurring Income (11.1) (10.5) 6% Commercial (1.4) (1.3) 6% Administrative (8.1) (6.3) 30% Other (1.5) (2.9) -46% Hotels and Restaurants (4.8) (4.2) 14% Commercial - (0.0) - Administrative (4.1) (4.2) -2% Other (0.7) (0.0) 8000% Real Estate Development (1.8) (7.2) -74% Commercial (0.3) (2.0) -83% Administrative (3.5) (2.5) 41% Other 2.0 (2.7) -172% Holding (13.0) (8.1) 60% Commercial (0.1) (0.0) 194% Administrative (12.3) (10.8) 14% Other (0.6) % From 1Q17, JHSF began to allocate expenses previously accounted in Shared Services Center Holding directly to each business unit. In the Recurring Income business, Operating Expenses grew as a result of changes made in its management structure, mostly reducing the Holding Company s recurring expenses. In comparison with 1Q16, the variation in the Other Operating Expenses line of the Hotel and Restaurant business is due to the weaker performance of the hotel in Rio de Janeiro, which is consolidated in the Company results by the equity method. The variation in Real Estate Development Expenses is mainly a result of: (i) the reduction in fees paid to brokers, impacting Commercial Expenses ; and (ii) the reversal of provisions, impacting Other Operating Expenses. In 1Q17, the Holding Company s Administrative Expenses were impacted by non-recurring expenses (commissions and fees) in the amount of R$7.8 million. 33

34 Investment Properties and Fair Value Appreciation of Investment Properties (R$' million) 1Q17 1Q16 Var. % Appreciation of Investment Properties % The Fair Value of Investment Properties ( IPs ), using the discounted cash flow method, booked an appreciation of R$34.8 million in 1Q17 (R$15.6 million in 1Q16). Depreciation and Amortization Depreciation and Amortization (R$' million) 1Q17 1Q16 Var. % Consolidated Depreciation and Amorization % Recurring Income % Hotels and Restaurants % RE Development % Holding % Adjusted EBITDA and EBITDA Reconciliation Adjusted EBITDA (R$' million) 1Q17 1Q16 Var. % Adjusted EBITDA % Margin (% of Net Revenue) 19% 27% Recurring Income % Margin (% of Net Revenue) 58% 64% Hotels and Restaurants % Margin (% of Net Revenue) 7% 11% RE Development (4.0) (8.1) -51% Margin (% of Net Revenue) - - Holding (5.2) (6.6) -20% EBITDA and Adjusted EBITDA Reconciliation (R$' million) 1Q17 1Q16 Var. % Net Income (17.4) (37.2) -53% Income Taxes and Social Contribution % Financial Result % Depreciation and Amortization % EBITDA % Fair Value of Investment Properties (Shopping Malls) (34.8) (15.6) 123% Expenses related to M&A of Malls, in 2016 (Holding) Expenses related to Compliance, in 2016 (Holding) Provisions (0.8) % Discontinued Operations Other % Adjusted EBITDA % Margin (% of Net Revenue) 19% 27% 34

35 Net Financial Result Consolidated Financial Result (R$' million) 1Q17 1Q16 Var. % Consolidated Financial Result (44.7) (57.9) -23% Financial Revenues % Financial Expenses (48.0) (64.7) -26% In 1Q17, the Company began to benefit from the deleverage that occurred throughout 2016, already posting a substantial reduction in Consolidated Financial Expenses, and from the fall in the basic interest rate in comparison with 1Q16 (81% of the Company s indebtedness is linked to the CDI rate). In 1Q17, Consolidated Financial Revenues consisted of: (i) income of R$2.0 million from financial investments; (ii) real estate receivables compensation of R$1.2 million; and (iii) other financial revenues totaling R$0.2 million. Consolidated Financial Expenses comprised: (i) interest on loans and financing, totaling R$36.9 million; (ii) discounts granted on receivables, amounting R$2.5 million; (iii) obligations with project partners amounting to R$1.8 million (return paid to JHSF Rio Bravo Fazenda Boa Vista FII quota holders); (iv) financial expenses of R$1.7 million related to the reversal of interests which were accounted on cancelled contracts; and (v) other expenses of R$5.0 million, which includes the recognition of fees paid on credit lines that were early settled during the Company s deleverage process. Income Taxes and Net Income Income Taxes, Social Contribution and Net Income (R$' million) 1Q17 1Q16 Var. % Income Before Taxes and Social Contribution (4.1) (21.2) -81% Income Taxes and Social Contribution (13.3) (12.9) 4% Discontinued Operations - (3.2) -100% Net Income (17.4) (37.2) -53% In 1Q17, the Company recorded a loss of R$17.4 million (R$37.2 million in 1Q16), of which R$12.5 million refers to deferred income taxes calculated on the Fair Value of Investment Properties. [The remainder of this page was intentionally left blank] 35

36 Consolidated Cash and Cash Equivalents and Debt Cash and Equivalents and Indebtedness (R$' million) mar/17 Dec/16 Difference Var. % Gross Debt (1,215.0) (1,488.3) (273.3) -18.4% Cash, Equivalents and Interest earnings bank deposits % Accounts receivable ("on balance") % Net Debt (812.3) (710.9) % Net Debt /Adjusted EBITDA LTM 3.5x 2.8x 0.6 p.p. Duration (in years) % Average Total Debt Maturity (%) 14.8% 15.9% -1.1 p.p. Cash, Equivalents and Securities: The reduction in the consolidated cash position is due to its use to accelerate debt payments together with resources from the assets sold in 2016, and to the amortization of the Company s 4 th issue of debentures, fully redeemed by March Consolidated Debt: The Company s debt has a long-term profile, with 93% maturing in longer than 12 months (duration of 4.1 years). We closed 1Q17 with an average nominal cost of debt of 14.8%, favored by the drop in the basic interest rate, 110 bps down from December The Net Debt / LTM Adjusted EBITDA ratio reached 3.5x Adjusted EBITDA 9. Consolidated Debt Indices (base March 2017) TJLP 10% UMBNDES 4% IPCA 5% CDI 81% Consolidated Debt Profile (Managerial) RE Development 39% Airport 10% H&R 1% Recurring Income 50% [The remainder of this page was intentionally left blank] 9 LTM Adjusted EBITDA in 1Q17: R$233.3million / 2016: R$249.9 million. 36

37 Consolidated Gross Debt Amortization Schedule ¹ ² (R$ million) ¹ Includes costs to be amortized of R$40.9 million. ² Duration of 4.1 years. R$' million Total Total Maturity ,256 Commercial banks Development banks th Issue of Debentures ² ¹ Includes costs to be amortized of R$40.9 million. ² Includes the 1 st issue of the subsidiaries. 37

38 Consolidated Accounts Receivable Indices (base March 2017) INCC 9% Prefixed 6% IPCA 2% Other 3% TR 24% IGP-M 56% [The remainder of this page was intentionally left blank] 38

39 Shopping Cidade Jardim RECURRING INCOME 39

40 SHOPPING MALLS: OPERATING INDICATORS RETAILER SALES 10 Consolidated retailer sales rose 3.0% year-on-year, with sales growth in all shopping malls, except in SPN, Manaus. In SCJ and CFO malls, highlight to sales growth of international brands. (R$' million) Q16 2Q16 3Q16 4Q16 1Q17 SSS and SAS SSS SAS 3.8% 2.3% 3.0% 1.9% 2.1% 2.1% 2.8% 1.1% -0.1% -0.7% 1Q16 2Q16 3Q16 4Q16 1Q17 [The remainder of this page was intentionally left blank] 10 SMT sales were excluded from 2016 Retailer Sales. 40

41 SSR and SAR SSR SAR 11.3% 11.0% 6.3% 6.8% 5.5% 5.8% 7.3% 3.5% 3.0% 0.6% 1Q16 2Q16 3Q16 4Q16 1Q17 OCCUPANCY RATE 92.2% 92.8% 92.6% 91.5% 93.1% 1Q16 2Q16 3Q16 4Q16 1Q17 [The remainder of this page was intentionally left blank] 41

42 OCCUPANCY COST In comparison with 1Q16, the occupancy cost dropped by 0.2%. 11.9% 9.7% 11.5% 10.2% 11.7% 1Q16 2Q16 3Q16 4Q16 1Q17 Breakdown of 1Q17 Shopping Mall Revenue Key Money 8% Other Services 12% Breakdown of 1Q17 Revenue by Shopping Mall SPN 19% CFO 21% Management 8% Leases 53% SCJ 43% Parking 19% SBV 17% [The remainder of this page was intentionally left blank] 42

43 Gero Barra - Restaurant HOTELS AND RESTAURANTS 43

44 FASANO HOTELS AND RESTAURANTS 11 Hotels Consolidated 1Q17 1Q16 % Average Daily (R$) 1,858 2, % REVPAR (R$) 1,119 1, % Occupancy Rate (%) 60.2% 67.5% -10.8% Compared to 1Q16, all the indicators of the Hotel division decreased: Average Daily Rate -8.5%, Occupancy Rate -10.8% and RevPAR -18.4%, due to the strong comparison basis in 2016 (1Q16: Average Daily Rate +20.9%, RevPAR +14.9% and Occupancy Rate -5.0%). The performance of this division was mainly impacted by the Rio de Janeiro operation. Average Daily (R$) REVPAR (R$) Occupancy Rate (%) 2,031 1,778 2,730 1,831 1,858 1,408 1,125 1,679 1,173 1, % 63.3% 60.5% 64.5% 60.2% 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 The operation in Angra dos Reis is scheduled to begin operations in 2H17, followed by Belo Horizonte and Salvador in 1H18. The inaugurations of Miami in 2018 and Trancoso in 2019 are also contracted and scheduled. It is worth emphasizing that these operations are already generating pre-operational fees for the Company. Restaurants Consolidated 1Q17 1Q16 % Number of Couverts 153, , % Average Couvert (R$) % Gross Revenue from the Restaurant division reached R$31.4 million in 1Q17, due to a total of 153,693 couverts sold, averaging R$ each. Compared to 1Q16, Revenue dropped by 2.7%, mainly due to the reduction of 9.4% in Gross Revenue from the operations in Rio de Janeiro. Number of Couverts Average Couvert (R$) 165, , , , ,693 1T16 2T16 3T16 4T16 1T17 1T16 2T16 3T16 4T16 1T17 11 JHSF owns 65% of HMI, the holding company controlling Fasano s operations. 44

45 Mena Barreto 423 REAL ESTATE DEVELOPMENT 45