3Q17 EARNINGS RELEASE. Performance Comments on the Quartely Financial Information ITR ended on Third Quarter of Highlights

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1 3Q17 EARNINGS RELEASE Performance Comments on the Quartely Financial Information ITR ended on Third Quarter of 2017 São Paulo, November 13, 2017 Viver Incorporadora e Construtora S.A. (VIVR3) announces today its operating and financial results related to the third quarter (3Q17). Highlights Gross Sales amounted to R$ 12.7 million in 3Q17 with negative Net Sales of R$ 5.3 million in such quarter. Total Repasse was R$ 23.3 million in 3Q17. The Company ended 3Q17 with approximately R$ million in receivables and R$ million in inventory at market value, of which R$ million and R$ million respectively were for units delivered. General and Administrative expenses, net of depreciation and amortization, severance and restructuring costs was R$ 2.9 million in 3Q17, representing a decrease of 22% compared to 3Q16. The Company joined the Special Tax Regularization Program (PERT) established by Provisional Measure Nº 783/2017, Considering the modality which the adhesion was made, the potential tax compensation reached R$ 55.5 million. The Company presented a net profit of R$ 17,8 million in the quarter, mainly due the potential tax compensation generated by the adhesion to the Special Tax Regularization Program (PERT) 1

2 Financial Performance Results are shown in accordance with the accounting practices adopted in Brazil, in Brazilian Reais (R$) and complying with Brazilian corporate law. Net Revenue Net operating revenue was R$ 0.1 million in 3Q17, consequence of not launching new projects and cancellations implemented in the quarter. Property Costs Property costs totaled R$ 2.8 million in 3Q17, a reduction caused by the Company present only 3 sites to be delivered. The table below shows a breakdown of property costs: Gross Profit and Backlog of Revenues and Results The gross loss amounted to R$ 2.7 million in 3Q17, which was mainly caused by sales cancellations, the fact that there were no launches and corporate financial expenses. In 3Q17, the revenue backlog totaled R$ 84.0 million, while the backlog of results to be recognized reached R$ 13.9 million. The backlog margin for the quarter was 16.5%, 473 bps less the 3Q16. Costs to be recognized do not include financial charges and guarantee provisions, which are recognized as operating costs in proportion to the units sold, when incurred. 2

3 Selling, General and Administrative Expenses In 3Q17, selling expenses totaled R$ 0.7 million, a decrease of 44.2% compared to 3Q16. This decrease resulted from the changes in marketing policy with selling expenses now is based on success fee for each sale. General and administrative expenses, net of depreciation and amortization, severance and restructuring costs, totaled R$ 2.9 million in 3Q17, the same level as in the previous quarter and representing a decrease of 21.6% compared to 3Q16, which results in an annualized level of R$ 11.6 million. Financial Result The net financial result was negative in 3Q17 at R$ 14.2 million, an increase of 59.5% compared 3Q16. After the Judicial request, the debts listed had their balances frozen at the date of request. Net Profit In 3Q17, the Company presented a net loss before tax of R$ 30.2 million. The recurring negative result, as already highlighted in previous quarters, is a consequence of no launches of new projects, the impact of cancellations on the recognition of revenue and gross profit, as well as provisions for lawsuits and now the resumption of the updating of part of the debt. Net income in this quarter was positive by R$ 17.8 million, reflecting the effect of approximately R$ 55.5 million in tax liabilities compensation due to the adhesion that was made in Special Tax Regularization Program (PERT) EBITDA EBITDA was negative R$ 14.2 million in 3Q17. The table below shows EBIT, EBITDA and EBITDA margin trends in recent quarters. 3

4 Balance Sheet Cash and Cash Equivalents and Securities On, cash, cash equivalents and securities totaled R$ 17.5 million, compared to R$ 29.4 million on June. It is important to mention that approximately R$ 14.8 million of this balance is in accounts linked to and blocked by financial operations. Portfolio Management and Client Mortgage Transfers ( Repasse ) The Company ended 3Q17 with a total receivables portfolio of R$ million, of which R$ million came from completed projects and R$ million from projects to be delivered, as shown in the chart below. Accounts receivables (R$000) 3Q17 2Q17 3T16 3Q17x2Q17 3Q17x3Q16 Current 324, , , % -18.2% Long-Term 15,970 18,146 21, % -27.3% Total on balance 340, , , % -18.7% Total "off balance 83,974 82,892 79, % 5.0% Total Account Receivables 424, , , % -14.9% Total delivered 250, , , % -20.7% Tota to be delivered 173, , , % -4.7% The funds generated by repasse and client receivables amounted to R$ 23.3 million in 3Q17. Inventory (properties for development and sale) The Company s inventory balance on stood at R$ million and included sites acquired with cash and through swaps, construction in progress, advances to suppliers and completed units, as detailed below. Inventory (R$ mil) 3Q17 2Q17 3Q16 3Q17x2Q17 3Q17x3Q16 Land 154, , , % -30.9% Properties under construction 66,834 66,931 54, % 22.0% Units completed 187, , , % -24.8% Advances to Suppliers % -93.5% Total 408, , , % -22.6% 4

5 Indebtedness On, the Company s total debt was R$ 1.1 billion (including related-party transactions and convertible debentures), a reduction of R$ 66.7 million compared to the previous quarter, this reduction is mainly related to the consolidation of the guarantees of an extra judicial debt. The restructuring of the most part of this debt is being handled within the judicial reorganization. Indebtedness Evolution (R$ million) 3Q17 2Q17 1Q17 4Q16 3Q16 Debt Corporate Debt SFH / Project Debt Securitization Co-obligation CRI Sub-total Indebtedness Related-Party Transactions + Convertible Related-Party Transactions Debentures Convertible Indebtedness Total 1, , , , ,196.5 Availability About Viver Incorporadora e Construtora S.A. Viver is a real estate developer and builder established over 20 years ago and renowned for its high quality developments and pioneering role in construction technology. It focuses on the middle and upper-middle segments of the residential market, especially in the area of Greater Porto Alegre and the state of São Paulo. The Company adopts a management model based on strict standards of corporate governance and close alignment between the executive officers, Board of Directors and shareholders. Viver s stock is listed on the BM&FBOVESPA s Novo Mercado trading segment under the ticker VIVR3. Investor Relations Phone: (55 11) ri.viver@viver.com.br 5

6 (Convenience translation into English from the original previously issued in Portuguese) VIVER INCORPORADORA E CONSTRUTORA S.A. Independent auditor s report Quarterly information As at JC/VAB/AV/MM/JSM/MS/IMPM 5113i/17

7 VIVER INCORPORADORA E CONSTRUTORA S.A. Quarterly information As at Contents Independent auditor s report on the review of quarterly Information Statements of financial position Statements of operations Statements of comprehensive income (loss) Statements of changes in equity Statements of cash flows Notes to the financial statements 2

8 Tel.: Rua Major Quedinho 90 Fax: Consolação São Paulo, SP - Brasil INDEPENDENT AUDITOR S REPORT ON THE INTERIM FINANCIAL INFORMATION To the Management and Shareholders of Viver Incorporadora e Construtora S.A. São Paulo SP Introduction We were hired to review the individual and consolidated interim financial information of Viver Incorporadora e Construtora S.A. (the Company), included in the Quarterly Information for the quarter ended, which comprise the statement of financial position as at and the respective statements of operations and comprehensive income (loss) for the three- and nine-month periods then ended, as well as the statements of change in equity and cash flows for the nine-month period then ended, and the corresponding notes to the quarterly information, including a summary of significant accounting policies. The Company s Management is responsible for the preparation of the individual interim financial information in accordance with Technical Pronouncement CPC 21 (R1) Interim financial information, and of the consolidated interim financial information in accordance with Technical Pronouncement CPC 21 (R1) and International Accounting Standard (IAS) 34 Interim Financial Reporting, which considers technical instruction OCPC 04 on the adoption of technical interpretation ICPC 02 by Real Estate Companies in Brazil, issued by the Committee of Accounting Pronouncements (CPC) and approved by the Brazilian Securities and Exchange Commission (CVM) and by the Federal Association of Accountants (CFC), and for the presentation of these interim financial information in accordance with the standards issued by CVM applicable to the Quarterly Information. Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of the review Except for the matters described below, we have conducted our review in accordance with Brazilian and international standards for reviewing interim financial information (NBC TR 2410 and ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity ). An interim review consists principally of applying analytical and other review procedures, and making enquiries of and having discussions with persons responsible for financial and accounting matters. An interim review is substantially less in scope than an audit conducted in accordance with auditing standards. An interim review does not provide assurance that we would become aware of any or all significant matters that might be identified in an audit. Accordingly, we do not express such an audit opinion. Additionally, due to the matters described in the Basis for disclaimer of conclusion section of this report, we were unable to obtain sufficient and appropriate evidence to provide a basis for our conclusion. 3

9 Basis for disclaimer of conclusion As presented in Note 1, on 16,, the Court-ordered of the Company and other companies belonging to its corporate group was filed. On 28,, the 2nd Court of Bankruptcies and s of the Judicial District of the State of São Paulo approved the request for the said Court-ordered. On June 12, 2017, the 2nd Reserved Business Court of the State of São Paulo granted the appeals from banks determining the elimination of the controlled companies with Earmarked Assets from the Court-Ordered, as well as the early examination of the controlled companies with no Earmarked Assets and, then, the presentation of a segregated plan for the latter. Accordingly, the scheduled Creditors Meetings of June and July, 2017 were suspended due to the decision of São Paulo s State Court of Appeals. The Company appealed against these decisions and awaits judgment of its appeals. The continuity of the Company s operations depends on the approval of the mentioned plan at the Creditors General Meeting and, consequently, its realization. Additionally, in the quarter ended, the Company reported individual and consolidated losses in the amount of R$ 96,255 thousand and R$ 95,904 thousand, respectively, accumulated losses of R$ 1,887,427 thousand, individual and consolidated current liabilities exceeding current assets by R$ 1,127,139 thousand and R$ 573,289 thousand, respectively, and deficit in equity of R$ 605,738 thousand. This situation indicates the existence of significant uncertainty that may cast doubt on the Company's and its controlled companies ability to continue as a going concern and doubt as to the basis of preparation of the individual and consolidated interim financial information, considering that as at, the individual and consolidated assets and liabilities of the Company were classified and evaluated assuming that the Company will continue as a going concern. The significant uncertainties and the matter discussed in the previous paragraphs do not allow us to conclude how, when and at which amounts the assets will be realized and the liabilities paid. Future significant events, whose outcomes cannot be predicted, will generate relevant impacts on the operations of the Company and may significantly affect the form and values at which these assets will be realized and these liabilities will be paid. We are also unable to conclude about how the assets will be realized and the liabilities paid, if by means of the Company s operations or through the disposal of part or all the assets. Disclaimer of conclusion about the individual and consolidated interim financial information Due to the relevance of the matters described in the paragraphs included in the Base for disclaimer of conclusion section, until the present date, we were unable to obtain proper and sufficient audit evidence to support our conclusion on the individual and consolidated interim financial information referred to above, according to Technical Pronouncement CPC 21 (R1) and IAS 34, applicable to the preparation of Quarterly Information and presented according to the standards issued by CVM. Consequently, we did not issue any review report on the Quarterly Information referred to above. Emphasis As described in note 2.1 (a), the individual and consolidated interim financial information were prepared in accordance with Brazilian accounting practices. The consolidated interim financial information prepared in accordance with the IFRS applicable to real estate companies also consider Instruction OCPC 04 - Adoption of Technical Interpretation ICPC 02 by Real Estate Companies in Brazil, issued by CPC. This instruction deals with the recognition of revenues from this industry and with issues related to the meaning and adoption of the concept of continual transfer of risks, benefits and control upon the sale of real estate properties, as detailed in Note 3.2 (a). 4

10 Other matters Statements of value added We were also engaged to review the individual and consolidated statements of value added (DVA) for the nine-month period ended, prepared by the Company s Management, whose disclosure in the interim financial statements is required in accordance with the standards issued by CVM applicable to the preparation of the Quarterly Information and considered as supplemental information by the IFRS, which do not require the disclosure of the Statement of Value Added. This statement was subjected to the same review procedures previously described and, based in our review, due to the matters described in the Basis for disclaimer of conclusion section, we did not issue a conclusion on this statement. Information presented for comparison purposes The amounts related to the quarter ended 30,, presented for comparison purposes, were previously reviewed by us and our report thereon, dated November 11,, had a disclaimer of conclusion. The amounts related to the year ended, presented for comparison purposes, were previously audited by us and our report thereon, dated March 17, 2017, had a disclaimer of opinion. The acing financial statements have been translated into English for the convenience of readers outside Brazil. São Paulo, November 06, BDO RCS Auditores Independentes CRC 2 SP /O-1 Julian Clemente Accountant CRC 1 SP /O-6 5

11 Statements of financial position In thousands of Brazilian Reais Asset Notes 09/30/ /31/ 09/30/ /31/ Liabilities Notes 09/30/ /31/ 09/30/ /31/ Current Current Cash and cash equivalents ,543 33,081 Loans and financing , , , ,792 Accounts receivable 6 5,151 6, , ,336 Debentures , , , ,333 Properties for sale , ,252 Co-obligations for the assignment of receivables 15 4,792 4,792 8,469 8,250 Sundry receivables 8 1,549 1,597 7,344 13,032 Real Estate Receivables Certificates 14 9,627 16,236 9,627 16,236 Taxes and contributions to be offset ,173 3,307 4,985 Trade accounts payable 16 6,667 6,561 21,265 20,379 Unrecognized selling expenses Labor and tax liabilities 21 2,158 4,076 29,315 54,434 7,398 9, , ,538 Accounts payable ,841 40,841 Creditors from acquired properties ,861 9,861 Advances from customers and others ,045 7,753 Related-party transactions , , , ,812 Provisions ,688 2,723 Provisions for losses on investments 12 25,956 17, ,134,537 1,158,459 1,226,903 1,265,595 Noncurrent Noncurrent Accounts receivable ,970 20,732 Loans and financing 14 18,344 18,345 20,156 37,756 Properties for sale , ,855 Co-obligations for the assignment of receivables ,153 5,912 Inter accounts with partners in ventures 9 10,072 23,256 10,324 23,276 Labor and tax liabilities 21-5,926 46,919 71,161 Related-party transactions 20 15,751 14,473 5,582 5,940 Accounts payable ,684 1,632 Taxes and contributions to be offset 10 1,429 1,135 5,689 5,567 Advances from customers and others ,347 8,347 Unrecognized selling expenses Provisions 22 10,092 6, , ,490 27,252 38, , ,985 Related-party transactions 20 1,867-1,867-30,303 31, , ,298 Investments , ,663 8,597 30,091 Net fixed assets 12 4,955 6,103 6,325 7,601 Total liabilities 1,164,840 1,189,593 1,433,090 1,493,893 Intangible assets 13 7,454 9,083 7,508 9,184 Equity 551, , , ,861 Capital stock 23 1,319,544 1,319,533 1,319,544 1,319,533 Share issue costs 23 (37,855) (37,855) (37,855) (37,855) Accumulated losses - (1,887,427) (1,791,172) (1,887,427) (1,791,172) (605,738) (509,494) (605,738) (509,494) Non-controlling interest Total equity (605,738) (509,494) (605,738) (509,494) Total asset 559, , , ,399 Total liability and equity 559, , , ,399 The acing notes are an integral part of these financial statements. 6

12 Statement of Income (loss) Quarters ended June 30 In thousands of Brazilian Reais Notes 09/30/ /30/ 09/30/ /30/ Revenue ,993 2,580 (13,717) ( - ) Costs of sales 25 - (168) (15,366) (49,965) ( = ) Gross profit (loss) 4 1,825 (12,786) (63,682) ( - ) Operating revenues (expenses) General and administrative expenses 26 (11,612) (15,967) (18,502) (17,500) Selling expenses 27 (1) (16) (2,389) (4,406) Other operating revenues (expenses) 29 (3,211) (19,178) (16,900) (54,562) Equity in earnings (losses) of controlled companies 11 (105,278) (117,256) (21,493) (61) (=) Operating loss before financial income (loss) (120,098) (150,592) (72,070) (140,211) Financial expenses 28 (25,692) (95,992) (86,169) (118,038) Financial revenues 28 1,520 1,350 14,062 11,481 ( =) Net financial income (loss) (24,172) (94,642) (72,107) (106,557) ( = ) Loss before income and social contribution taxes (144,270) (245,234) (144,177) (246,768) ( - ) Income and social contribution taxes - current 21 48, ,393 (3,446) ( - ) Income and social contribution taxes deferred ,880 4,608 ( = ) Loss for the year from continuing operations (96,255) (244,945) (95,904) (245,606) ( = ) Loss for the period (96,255) (244,945) (95,904) (245,606) Attributable to Company's shareholders (96,255) (244,945) Non-controlling interest 351 (661) Loss per share from continuing and discontinued operations (expressed in R$ per share) From continuing operations (22,392) (71,539) From discontinued operations - - Basic and diluted loss per share (22,392) (71,539) (95,904) (245,606) The acing notes are an integral part of these financial statements. 7

13 Statement of comprehensive income (loss) Quarters ended 30 In thousands of Brazilian Reais 09/30/ /30/ 09/30/ /30/ Loss for the period (96,255) (244,945) (95,904) (245,606) Other comprehensive income (loss) (=) Comprehensive income (loss) for the period (96,255) (244,945) (95,904) (245,606) Attributable to Company's shareholders (96,255) (244,945) (96,255) (244,945) Non-controlling interest 351 (661) (96,255) (244,945) (95,904) (245,606) The acing notes are an integral part of these financial statements. 8

14 Statement of changes in equity In thousands of Brazilian Reais Paid-in capital stock Share issue costs Accumulated losses Equity Non-controlling interest equity Balances as at January 1, 1,297,145 (37,855) (1,444,002) (184,712) - (184,712) Capital increase through private subscription Minority interest profit distribution Loss for the period - - (244,945) (244,945) (661) (245,606) As at 30, 1,298,070 (37,855) (1,688,947) (428,732) - (428,732) As at 1,319,533 (37,855) (1,791,172) (509,494) - (509,494) Capital increase through private subscription Minority interest profit distribution (351) (351) Loss for the period - - (96,255) (96,255) 351 (95,904) As at 1,319,544 (37,855) (1,887,427) (605,738) - (605,738) The acing notes are an integral part of these financial statements. 9

15 Statement of cash flows Quarters ended 30 In thousands of Brazilian Reais 09/30/ /30/ 09/30/ /30/201 6 From operating activities Loss before income and social contribution taxes, including discontinued operations (144,270) (245,234) (144,177) (246,768) Adjustments to reconcile income (loss) to cash and cash equivalents from operating activities Depreciation and amortization 2,776 2,871 2,895 2,987 Provisions for losses on assets 83 16,285 (1,693) 22,508 Provisions for legal claims 3, ,019 30,886 Provisions for construction warranty - - (577) (667) Fixed assets disposal cost ,147 Deferred taxes - - (1,851) (5,343) Finance charges on financing 26,563 96,831 74, ,811 Capitalized portion of finance charges 7,786 3,340 3,351 6,813 Equity in earnings (losses) of controlled companies 105, ,256 21, Non-controlling interest - - (351) 661 1,446 (7,739) (28,500) (51,904) Changes in assets and liabilities (Increase)/Decrease in asset accounts Accounts receivable 903 (4,870) 63, ,849 Properties for sale ,888 (4,312) Taxes and contributions to be offset , Sundry receivables 48 (496) 5,930 (1,038) Related-party transactions (1,278) 1, Inter accounts with partners in ventures 13,102 10,382 14,191 10,322 Unrecognized selling expenses Increase/(decrease) in liability accounts Labor and tax liabilities 40,171 (1,555) 2,132 10,456 Trade accounts payable 106 2, (4,393) Accounts payable 15 (31) 9,052 13,705 Related-party transactions 42,727 85, ,758 Customers advances (117) (1,487) (708) (33,594) Net cash from operating activities 97,498 83,962 99, ,154 Paid income and social contribution taxes - - (1,369) (3,639) Payments of interest on loans and financing, debentures, derivative transactions, co-obligation in the assignment of receivables and obligations with investors (45,112) (22,989) (45,178) (30,508) Net cash from operating activities 52,386 60,973 52,823 78,007 From investing activities (Increase)/decrease in capital of controlled companies, net (134) 2,779-10,470 Distributed Profits - 1,059-1,059 In fixed assets In intangible assets Net cash from investing activities (134) 3, ,529 From financing activities Raising of loans and financing, debentures, derivative transactions, co-obligation in the assignment of receivables and obligations with investors ,180 Payments of loans and financing, debentures, derivative transactions, co-obligation in the assignment of receivables and obligations with investors (60,630) (66,399) (76,373) (96,082) Related-party transactions 8, , Capital increase Net cash from financing activities (52,619) (65,170) (68,362) (87,673) Cash and cash equivalents balance at end of period ,543 24,601 Increase/(decrease) in cash and cash equivalents (367) (359) (15,538) 1,863 Cash and cash equivalents balance at beginning of period ,081 22,738 Cash and cash equivalents balance at end of period ,543 24,601 The acing notes are an integral part of these financial statements. 10

16 Statement of value added Quarters ended 30 In thousands of Brazilian Reais 09/30/ /30/ 09/30/ /30/ Revenues Sales and services 4 2,197 2,625 (13,776) 4 2,197 2,625 (13,776) Inputs acquired from third parties Cost of goods, merchandise and services sold - (168) (10,111) (18,336) Materials, energy, third-party and other operating services (8,217) (24,645) (28,624) (62,562) Others (1,648) (7,861) (24,677) (38,117) (82,546) Gross value added (7,857) (22,480) (35,492) (96,322) Depreciation, amortization and depletion, net (2,776) (2,872) (2,895) (2,987) Net value added generated by the Company (10,633) (25,352) (38,387) (99,309) Value added received in transfer Equity in earnings (losses) of controlled companies (105,278) (117,256) (21,493) (61) Financial revenues 1,520 1,351 14,062 11,481 (103,758) (115,905) (7,431) 11,420 Total value added to be distributed (114,391) (141,257) (45,818) (87,889) Value added distribution Personnel Payroll and charges 3,669 5,849 4,788 6,638 Commissions on sales Management fees 270 1,403 1,182 1,403 Taxes, fees and contributions Federal (48,014) (85) (48,228) (1,247) Municipal Return on debt capital Interest 25,692 95,992 91, ,667 Rents Return on equity capital Loss for the year (96,255) (244,945) (96,255) (244,945) Non-controlling interest in retained earnings (661) (114,391) (141,257) (45,818) (87,889) The acing notes are an integral part of these financial statements. 11

17 Notes to the quarterly financial information as at 1 General information Viver Incorporadora e Construtora S.A. (the "Company" or "Viver") under court-ordered reorganization is a publicly held headquartered in São Paulo, state of São Paulo, whose shares are traded on B3 S.A. under the ticker VIVR3, with no agreement between the stockholders regarding the establishment of a controlling group. The Company's key business activity, in conjunction with its controlled and jointly controlled companies, is the development of real estate ventures, particularly in the residential and office segments, through investments in companies established with specific purpose, partnerships or consortia, as well as provision of real estate development management services. The Company has reported accumulated losses of R$ 1,887,427 in its operations, and calculated profit of R$ 17,821 in the quarter affected by reduction with the adhesion to Special Tax Regularization Program (PERT). Court-ordered reorganization After the realization of the initial public offering (IPO) in 2007, following the trend in the sector, the Company adopted an expansionist strategy and then with the market deterioration it started to suffer the impacts of this growth model, both in the market aspect, as well as a result of the existing capital structure, which was incompatible with the strategy adopted. As from 2012, the Brazilian macroeconomic scenario started to challenge the sector's cash generation and expansion expectations. Due to this combination of factors, Viver faced a crisis in At that point in time, Viver presented extremely high fixed expenses, organizational structure disproportional to its operations, corporate debts with short-term maturity amounting to over R$ 700 million, over 30 projects stopped and with no expectation of financing for resources to complete the construction work. In 2012, the Company decided to restructure its activities, changing the board of directors and the business conduction guided by 5 principles: (i) reduction in costs and cash preservation; (ii) deleveraging/sale of assets; (iii) delivery of projects; (iv) strengthening of the capital structure ; and (v) generation of value. This is how the restructuring strategy was implemented. There was a 75% reduction in general and administrative costs, sale of assets amounting to R$ 500 million, 62% reduction of corporate debt (over R$ 400 million), in addition to renegotiating other liabilities, raising funds of over R$150 million to complete the construction work and, lastly, but of utmost importance, the delivery of almost the totality of the ventures that were under construction Notwithstanding, all efforts and the success in implementing the guidance principles, the macroeconomic scenario brought huge impacts on the business model that was being developed in the new management, which resulted in the current crisis the Company is going through: a) The expectation of increase in price was not met, on the contrary, the real estate market has been enormously increasing since then; b) Sales increase in levels lower than the historical record; c) Volume of transfer highly impacted by the macroeconomic perspective banks highly restrictive in credit access to natural person; d) Massive increase of returned units though cancellation of contracts between acquirers; e) Major increase in the number of shares, specially related to cancellation of contracts of purchase and sales of real estate units, which affected and still affect the generation of cash of the SPEs. 12

18 Notes to the quarterly financial information as at Despite all efforts to reduce expenses and improve its operating efficiency, the Company still depends on the restructuring of all liabilities to rebalance its capital structure and management considers this restructuring essential to ensure it is possible to cover these general expenses, pay its liabilities, including a high volume of lawsuits from clients and, consequently, enable its going concern. In, the Company conducted a series of successful operational restructuring which enabled to improve its structure and consequently the structure of other controlled companies. Among the projects carried out are: (i) Specific efforts of sales and monetization of assets; (ii) Projects for monetization of free cash complex assets with low conversion of sales in cash; (iii) Renegotiation of expenses with suppliers and lawyers; (iv) Negotiation with financial creditors on closing of operations of settlement of financial debt with discount; (v) Operational restructuring of key areas in the administrative structure, resulting in reorganization of areas and decrease in the number of employees; (vi) Raising of financing for operations, particularly; (vii) Equalization of legal actions to reduce contingent liabilities. However, in the financial area, the Company did not obtain success in implementing the planned measures, resulting in worsening of its financial crisis and of other controlled companies: (i) Attempts to renegotiate debts failed due to resistance from its main creditors as to the terms proposed; and (ii) without a solution with its creditors, the Company again became unattractive for the inflow of new capital. Several conversations with that purpose were finished due to no agreement with banks. With insufficient cash, the Company started to renegotiate the installments of its debts with banks and suppliers, which caused the reduction of the amount of credit available for the Company. The Company is in a cycle of reduction in value. To reverse this, on 16,, the Courtordered was filed, which was the most adequate measure to preserve value for all stakeholders of Group Viver, allowing the equalization of liabilities, restoring trust of its customers, suppliers and banks, resuming the launches and, lastly, overcoming the momentary economic and financial crisis. On 28,, the 2nd Court of Bankruptcies and s of the Judicial District of the State of São Paulo approved the request for Court-ordered of the Company, with other companies belonging to its corporate group, determining, among other measures: (i) Exemption from filing debt clearance certificates, so the Company can perform its activities; (ii) Suspension of the lawsuits and executions against the Company and the others under recovery for one hundred eighty (180) business days, according to the law; (iii) Presentation of the accounts by the Company until the 30 day of each month, under the penalty of discharge of its shareholders and managers; (iv) Presentation of the Recovery Plan within 60 business days; and (v) Issue of a public notice, pursuant to paragraph 1, article 52, Law No /2005, with a deadline of fifteen (15) business days for qualifications or divergences of creditors that may not be listed in the Court-Ordered. The full text on the judicial decision that approved the court-ordered reorganization is available to shareholders at Company s website. The Company reaffirms that the purpose of the Court-ordered is to maintain the rendering of services with quality to the clients and settle its indebtedness. The measure provided in the Brazilian law allows the services rendered by the Company to be maintained and preserved. In addition to the parent Viver Incorporadora e Construtora S.A., more 63 controlled companies are included in the Court-Ordered, which are stated in the chart of percentage of ownership interest with the text Under court-ordered reorganization. For that process, KPMG CORPORATE FINANCE LTDA. ( KPMG ) was named as trustee. Consolidation of the court-ordered reorganization On November 09,, the judge rendered a decision accepting the report presented by the trustee, approving the substantial consolidation request of Viver and more 47 controlled companies, so that 16 13

19 Notes to the quarterly financial information as at controlled companies with earmarked assets may present individual recovery plan. On February 06,, 17 court-ordered reorganization plans were filed for the 64 companies which requested it, and the full text of the plan is available to shareholders at Company s website. The creditor s meeting should take place by the deadline established upon the approval of the Courtordered Plan. On June 12, 2017, the 2nd Reserved Business Court of the State of São Paulo granted the appeals from the banks Bradesco, Santander and others, determining the elimination of the SPEs with Earmarked Assets from the Court-Ordered, as well as the early examination of the SPEs, which was presented on August 07, 2017, with no Earmarked Assets and, then, the presentation of a segregated plan for the latter. The Creditors Meetings first called on June 28, 29, and July 04, 05, 2017, and then on July 06, 11, 12, 13, 2017, as per public notice disclosed in the Journal of São Paulo s State Court of Appeals on June 01, 2017, were suspended due to the Court s decision. On August 24, 2017, a decision was issued, excluding the companies from court-ordered reorganization (i) with earmarked assets established, (ii) with construction work concluded, with the certificate of occupancy issued and with no inventory (iii) without procedural regularization, as well as confirming the approval of court-ordered reorganization process of the companies which were not excluded from court-ordered reorganization. Group Viver appealed against these decisions and awaits judgment of its appeals. During 2017, general list of creditors was restated as well as court-ordered reorganization plans of the companies which remained in the process. 16 individual plans were presented and a consolidated plan which included Viver and nine controlled companies, totaling 26 companies in the court-ordered reorganization process. The new court-ordered reorganization plans are in accordance with the understanding adopted by Court of Appeals in recent judgments of appeals arising from court-ordered reorganization and did not significantly change the means of court-ordered reorganization in the plans of court-ordered reorganization stated on Accordingly, there are still no Creditors Meetings expected to be called. The Company points out that maintenance of certain controlled companies as plaintiff of the courtordered reorganization is still under discussion in court. The Company believes that the maintenance of these controlled companies as plaintiff will be more beneficial to several parties involved in the process and will materially contribute to overcome its temporary economic and financial crisis. Going concern The financial of the period ended, was prepared assuming the Company s ability to continue as a going concern, based on the Management s evaluation of (i) closing a deal with most creditors of Viver in the court-ordered reorganization and (ii) approving court-ordered reorganization plan by most creditors and its confirmation by the Court. The Court-ordered aims to ensure Viver's going concern. Based on the information available on this date, the Company has no reason to believe it will not be possible to reach an agreement with most creditors of Viver. Additionally, the Board of Directors has a reasonable expectation that Viver will be able to keep its activities and its operations will remain in effect during the Court-ordered. The Company s going concern ultimately depends on the success of the court-ordered reorganization and the achievement of other forecasts by Viver. These conditions 14

20 Notes to the quarterly financial information as at and circumstances indicate the existence of significant uncertainty that may cast doubt on Viver s ability to continue as a going concern. In addition to allowing the renegotiation of petition liabilities of the companies under recovery by means of forms and conditions established in the Plan, it also allows the full economic improvement of the companies of the Group Viver, to the extent that (i) it reverses the vicious circle of low liquidity; and (ii) attracts new capital for the by means of investment of interested parties in the assets and platform of the Group Viver. With its economic improvement, the Company may continue to operate and launch several real estate ventures. For a return to profitability, the Company has a bank of plots of land that represents around R$ 2 billion and 7,772 units, being R$ 406 million potential launches already approved. The Company continues with the following main measures, aiming to resume its profitability, as follows: (a) Continual strict control and reduction of operating costs and expenses (Note 26), with the annual amount of R$ 12.0 million in downward trend. (b) Large volume of deliveries, reducing operational risk and focusing on the process of transfers from clients for amortization of financing and generation of free cash for the Company, closing the period with R$ 449,560 of receivables; (c) Sale of land not in the launch plans of the Company. Finally, as part of the restructuring which will ensure the Company s perpetuity, the supervising Court of the court-ordered reorganization authorized raising of new funds for Viver, which will allow that the companies under recovery keep a minimum cash structure to fund their current expenses until the funds from the court-ordered reorganization plan are converted to the Company s cash. The Company is subject to arbitration under the Market Arbitration Chamber, pursuant to an arbitration clause included in its by-laws. The individual and consolidated financial information was approved by the Company s Board of Directors on November 10, Main accounting policies The main accounting policies applied on the preparation of this individual and consolidated Quarterly Financial Information (ITR) were not changed in relation to the ones presented in the Standard Financial Statements (DFP) of the period ended. In cases where the explanatory notes of this ITR are not completely presented due to information redundancy in relation to what was presented in the Standard Financial Statements (DFP) of the period ended, the complete information has to be read in the corresponding note of the annual DFP. The notes numbers in this ITR are the same of the annual DFP. The individual financial information (parent ) was prepared according to Technical Pronouncement CPC 21 (R1) - "Interim Statements ", and presented in accordance with the standards issued by the Securities and Exchange Commission (CVM). The consolidated financial information was prepared according to CPC 21 and IAS 34 - Interim Financial Information, which considers the Orientation OCPC 04 on the application of the Technical Interpretation ICPC 02 to Companies of Real Estate Development in Brazil, issued by the Accounting Pronouncements Committee (CPC) and approved by the CVM and the Federal Accounting Council (CFC), as well as the presentation of this information in accordance with the standards issued by CVM, applicable to the preparation of Quarterly Financial Information (ITR). 15

21 Notes to the quarterly financial information as at The above-mentioned Orientation OCPC 04, issued by CPC, addresses certain subjects related to the meaning and application of the concept of continuous transfer of risks, benefits and control in the sale of real estate units by the real estate development companies in Brazil and basis for revenue recognition. 3 Critical accounting estimates and judgments The accounting estimates and judgments are continuously evaluated and are based on historic experience and on other factors, including expectations of future events considered reasonable for the circumstances. 3.1 Critical estimates and assumptions Based on assumptions, the Company and its invested companies make estimates concerning the future. The resulting accounting estimates will rarely be equal to the related actual results. The estimates and assumptions that have significant risk of resulting in material adjustments to the accounting values of assets and liabilities for the next financial year are mentioned below. (a) Revenue recognition and estimate of construction margin The Company, its controlled and jointly controlled companies use the Percentage of Completion (POC) method to record their contracts for the sale of units of the real estate developments and provision of services. The POC method requires the Company to estimate the costs to be incurred up to the completion of the construction and delivery of the concluded real estate units pertaining to each real estate development project, in order to establish a proportion in relation to the already incurred costs. Total estimated costs, which consist of incurred and projected costs for the conclusion of the construction work, are regularly reviewed according to the development of the work, and the adjustments arising from this review are reflected in the Company s income (loss) according to the accounting method used. (b) Contingencies In the normal course, the Company and its controlled and jointly controlled companies are subject to investigations, audits, lawsuits and administrative proceedings involving civil, tax, labor, environmental, corporate, consumer rights and other matters. Depending on the objects of the investigations, lawsuits or administrative proceedings filed against the Company and its controlled and jointly controlled companies, they may adversely affect the Company and its controlled and jointly controlled companies, regardless of the final result. The Company and its controlled and jointly controlled companies may be periodically investigated by different authorities, including tax, labor, social security, environmental and sanitary surveillance authorities. It is not possible to ensure that those authorities will not issue additional assessments against the Company and its controlled and jointly controlled companies or that these assessments will not be converted into administrative proceedings and, subsequently, into lawsuits. The Company recognizes provisions for tax, civil and labor lawsuits. The assessment of the probability of loss includes assessing the evidence available, the hierarchy of the laws, available case law, the most recent court decisions and their significance in the legal system, as well as the opinion of external legal advisors. The provisions are reviewed and adjusted to take into consideration changes in circumstances, such as applicable statutes of limitations, conclusions from tax inspections or additional exposures identified based on new matters or court decisions. 16

22 Notes to the quarterly financial information as at 3.2 Judgments in the adoption of accounting policy (a) Revenue recognition For purposes of applying the revenue recognition accounting policy, the management follows Orientation OCPC 04 on the application of Technical Interpretation ICPC 02 to Brazilian Real Estate Development Entities, issued by the Brazilian Accounting Pronouncements Committee (CPC) and approved by the Brazilian Securities and Exchange Commission (CVM) and the Federal Association of Accountants (CFC). Real estate units under construction are regulated by the Real Estate Development law (Law 4.591/64) and, as required by this law, meet the examples referred to in Item 22 of OCPC 04, judging that the most significant risks and rewards of ownership of real estate units sold (item 14 of CPC 30 (R1)) are continuously transferred to the purchasers during the construction of the real estate development. This determination requires significant judgment by the management. Based on this judgment, revenue from real estate development is recognized by using the percentage of completion (POC) method. This percentage, as established by CVM Resolution 963/2003, is determined based on the proportion of costs incurred through calculation date to the total estimated costs up to the completion of construction. If OCPC 04 had not been issued and the conclusion regarding the application of ICPC 02 had been that the most significant risks and rewards of real estate units ownership were not continuously transferred to the purchasers during the construction of the real estate development, the greatest possible impact on the financial statements would be a decrease in equity and impacts on net income for the year in a transitory manner, since the recognition of income and the related costs and taxes would be made upon surrender of the keys. (b) Revenue recognition - responsibility for contracting and payment of brokerage commission Charges related to sales commission are under the responsibility of the property purchaser, and are not included in the sales price established in the contracts signed with the purchasers and the corresponding revenue recognized by the Company. The Company's management is considering, together with its legal advisors, the implications of a decision by the Public Attorney's office requiring real estate brokers to clearly and precisely state in the proposals for the purchase of property that the purchaser is not responsible for the payment of the brokerage commission, having already made an Agreement (TAC Termo de Ajustamento de Conduta) with one of them, with the purpose of determining the possible impacts on its operations and consequent effects on its financial statements. The Public Attorney's office has already issued favorable decisions. Additionally, management also monitors the changes in the sector related to this matter, in order to continuously assess the impact on its operations and consequent effects on the financial statements. (c) Estimated losses - Indemnities for late delivery of real estate units Law of December 16, 1964, which regulates real estate developments and sales of real estate units, permits a delay of 180 days in the delivery dates established in the sales contracts of units under Construction. However, the contracts signed up to mid-2011 do not include fines or penalties applicable to the Company, its controlled and jointly-controlled companies for delays beyond the tolerance term mentioned above. The contracts signed as of the second semester 2011 started to include a penalty corresponding to 2% of the amounts received, adjusted by the variation of the National Civil Construction Index (INCC) and, after the completion and delivery of the units sold, they will be restated by IGP-M variations, plus a 0.5% per month penalty for late delivery after the tolerance time of 180 days (Note 6). 17

23 Notes to the quarterly financial information as at The Company, its controlled and jointly-controlled companies, together with their legal advisors, are monitoring lawsuits that have been filed by individual purchasers that have received units purchased under construction after the end of the tolerance term, claiming compensation and indemnities for pain and suffering damages, and are establishing specific provisions according to the analyses of the individual lawsuits (Note 22(b)). Some projects were delivered on dates different from the dates established upon sale of the units, or had different dates. As a consequence, it is likely that a price reduction will be granted, or that charges shall be paid to these customers (Note 6). (d) Adoption of accounting policies As mentioned in Note 1, the management is taking actions to manage its indebtedness and obtain funds necessary to conclude the development of its projects under construction, whose total budgeted cost for the conclusion of these developments amounts to R$ 107,637 (R$ 104,328 as at ) (Note 30), as well as to regain profitability through reduction of costs and expenses and taking again the construction pace of the projects in-progress, thus keeping the continuity of operations of the Company and its controlled companies, and it believes that these actions will be sufficient to improve the capital structure of the Company and the generation of cash necessary for its continuity. Therefore, the management has prepared these quarterly financial statements using accounting policies applicable to companies on a going-concern basis, which do not consider any adjustment deriving from uncertainties in its capacity of operating continuously. CPC 47 - IFRS 15 - Revenue from contracts with customers On May 28, 2014, IASB issued IFRS 15, Revenue from Contracts with Customers, which requires the to recognize the revenue amount reflecting the consideration they expect to receive in exchange for the control of such goods and services. On December 22,, the Committee of Accounting Pronouncements (CPC) issued CPC 47 equivalent to IFRS 15. The new standard will replace the vast majority of the detailed guidance on revenue recognition that currently exists when adopted. The new standard is applicable from or after January 01, 2018, with early application allowed by IFRS. The new standard may be adopted retrospectively, using a cumulative effect approach. The Company is assessing the effects that CPC 47/IFRS 15 will have on the financial statements and its disclosures. The Company has not evaluated the impacts of the new standard, but it does not expect significant impacts on its financial statements because it practically has no construction in progress. Other essential point in this analysis will be related to cancellation of contracts, given that amendments to Law may occur, which change the analysis of risks in relation to maintenance of POC and revenue recognition only upon delivery of the keys. 4 Financial risk management (a) Market, credit and liquidity risk There was no change in market risk factors and in the policy for management of these risks in relation to the ones described in the Standard Financial statements presented as at. The table below analyzes the Group s non-derivative financial liabilities, by maturity range corresponding to the remaining period from balance sheet date to the contractual maturity date. The values disclosed in the table are the account balances as at. 18