Even discloses the 1Q15 results

Transcription

1 Even discloses the 1Q15 results São Paulo, May 7, 2015 Even Construtora e Incorporadora S.A. EVEN (BM&FBOVESPA: EVEN3), with operations in São Paulo, Rio de Janeiro, Rio Grande do Sul and Minas Gerais and focus on residential developments with unit value above R$250 thousand, announces its results for the first quarter of 2015 (1Q15). Except where stated otherwise, the consolidated financial and operating information herein is presented in Brazilian reals (R$). IR CONTACT Dany Muszkat Financial and IR Director Ivan Bonfanti IR Manager Fernanda Brienza IR Analyst Tel.:+55 (11) ri@even.com.br Stock price Closed on: 05/06/2015 Price per share: R$ 4.54 HIGHLIGHTS Dividends of R$ 59 million will be distributed on May 13; Open a new share repurchase program in order to acquire 5% of company shares (approximately R$ 53 million with current share price); Cash position of R$ 661 million even after payment of R$ 118 million (principal plus interest rates) of company s debts which matured in 1Q15 and low leverage (49.3% Net Debt/Net Equity); The company Even More is created, a new real estate company focused on São Paulo market to complement the works carried out by Even sales force; Number of shares: 233,293,408 Number of shares (ex-treasury): 224,753,553 (on 03/31/2015) 228,387,954 (on 04/30/2015) Market Cap: R$ 1,132,8 million (on 05/06/2015) (shares in treasury disregarded) Delivery schedule for 2015 is adjusted at R$ 200 million (from R$ 1.9 billion to R$ 2.1 billion). CONFERENCE CALL - RESULTS FOR THE QUARTER ENDED ON MARCH 31, 2015 Date: May 08, 2015 Portuguese 02 p.m. (Brasília time) 01 p.m. (New York time) 06 p.m. (London time) Phone: +55 (11) or (11) Replay: +55 (11) Code: # English (simultaneous interpreting) 02 p.m. (Brasília time) 01 p.m. (New York time) 06 p.m. (London time) Phone: (Code: Even) Replay: +55 (11) Code: #

2 The information, figures and data included in this performance report, which do not correspond to the accounting balances and information contained in the Quarterly Information ITR, such as: General Sales Value (GSV), Total Sales, Even s Sales, Usable Area, Units, Inventories at Market Value, Launches, Expected Delivery Year, Backlog Gross Margin and other items, were not revised by the independent auditors. Except when stated otherwise, the comparisons in this quarter report refer to the numbers verified in the first quarter of 2015 (1Q15). CONTENT Message From Management... 3 Main Indicators... 4 Operating Performance... 5 Launches... 5 Sales... 5 Housing... 6 Inventory... 7 Land Bank... 9 Commitment per land acquisition Delivery and execution of projects Production financing Transfers Cancellations and default Economic-Financial Performance Revenue Gross Profit and Gross Margin Commercial, General and Administrative Expenses Financial Result Operating Profit EBITDA Net Profit and Net Margin Financial Structure Cash Generation / Cash Burn Accounts to Receive from Clients Owership Structure Other Information Acknowledgments Subsequent Events Annexes Annex 1 Result Statement Annex 2 Balance Sheet Annex 3 Cash Flow Statement Annex 4 Net Asset Annex 5 Land Bank Annex 6 Trade evolution and cost financial evolution About the Company Disclaimer Page 2 of 33

3 MESSAGE FROM MANAGEMENT¹ The macroeconomic scenario remains fragile, which brings some specific impacts to the sector, where we have noticed, for instance, interest rate increases for the real estate finance practiced by some banks. On the other side, as a result of this more critical scenario, we have noticed that some financial institutions have chosen to privilege the relationship with companies with which they have kept a long positive history ( flight to quality ), which distinguishes Even in the sector and brings important competitive advantage. We started 2015 stick to our strategic planning and directed our efforts to the (i) trade of units in inventory, the main target established for the current year, allied to the (ii) decrease of corporate expenses; and (iii) maximum preservation of our projects value. In such scope, we conducted in this quarter another Even Day issue, a sales event occurred simultaneously in São Paulo, Rio de Janeiro and Porto Alegre, where we provided our clients with a basket of products with special conditions, privileging the trade of finished units or next to delivery. The level of discounts practiced was similar to that of prior issues that is why the event did not suffer gross margin oscillations in any of the venues. The gross margin was influenced by Southern region higher representativeness in the company revenue mix due to this region sales volume (around 40% of total) in the first quarter. And, as most purchase of land in this venue is made by swaps, the company consolidated gross margin reduction is a natural consequence. It is worth emphasizing that the plots of land purchased in the modality carry a higher return rate due to the reduced capital allocation. In case Rio Grande do Sul sales had kept the revenue representativeness seen in the last 12 months, the 1 st quarter of 2015 gross margin would be 34.4%, that is, 1,4 p.p. higher than that reported. It has been already possible to notice in this quarter the positive impact of corporate expenses control on the result, which was the lowest one recorded in the last 12 months. Considering the successful performance and current relevance of Even Vendas in our undertaking trade, we identified the opportunity to create a new real estate agency to complement the work already carried out by Even Vendas: the Even More. Even More will focus on São Paulo market in parallel with Even Vendas, whose structure remains unchanged. Both companies will have independent operations, structures and strategies. Therefore, we will encourage a healthy competition and seek to increase Even total sales, mitigating the requirement of aggressive promotional campaigns in adverse scenarios. This measure reasserts the fussy and innovative spirit that has always ruled our trajectory and intended to turn Even more competitive. We continue with a sound financial discipline with R$ million in cash even after the payment of corporate debts due in March in the amount of R$ 118 million (principal plus interests). As such, our leverage, measured by the ratio net debt on net equity, remained practically unchanged in 49.3%. We will try to optimize our capital structure even more: we will distribute over R$ 59 million in dividends referring to 2014 result on the next May 13 and opened a new share repurchase program (approximately R$ 53 million with the paper current price) in order to maximize the value generation for the shareholders. Despite the lower disbursement with land payment (in line with our strategy), the cash consumption in the period was of R$ 47.9 million. Such result is due to the lower volume of reception and deliveries in the quarter (as already expected in our construction schedule). We expect that the volume of deliveries expected for the year brings the reception levels back to the levels presented in prior quarters from 2Q15. Also, the 2015 delivery volume was reviewed in R$ 200 million higher than that estimated at the end of 2014 (from R$ 1.9 billion to R$ 2.1 billion in VGV at the launch time). ¹ This document contains certain forward-looking statements and information relating to Even, which reflect the Company current visions and/or expectations in respect with its performance, businesses and future events. Any statements bearing prediction, indication or estimates about future results, performance or purposes, as well as we believe, we estimate, among other words with similar meaning cannot be construed as guidance. Such statements are subject to risks, uncertainties and future events. Page 3 of 33

4 MAIN INDICATORS Consolidated Financial Data 4Q14 1Q15 Chg. (%) 1Q14 1Q15 Chg. (%) Net revenue 605, ,638-23% 475, ,638-2% Gross profit 161, ,104-29% 129, ,104-11% Adjusted gross margin % 33.0% -0.4 p.p. 35.3% 33.0% -2.3 p.p. Adjusted EBITDA 96,617 71,699-26% 81,747 71,699-12% Adjusted EBITDA margin 16.0% 15.3% -0.6 p.p. 17.2% 15.3% -1.9 p.p. Adjusted net income 67,522 31,058-54% 53,813 31,058-42% Net margin before minority interest 11.1% 9.6% -1.5 p.p. 11.5% 9.6% -1.9 p.p. Earnings per share (ex-treasury) % % ROE 12.7% 5.8% -6.9 p.p. 10.7% 5.8% -4.9 p.p. ROE (last 12 months) 12.3% 11.0% -1.3 p.p. 14.9% 11.0% -3.9 p.p. Revenue to be recognized 2 2,070,627 1,930,572-7% 2,241,584 1,930,572-14% Unearned income 2 744, ,464-7% 786, ,464-12% Unearned income margin % 36.0% 0,0 p.p. 35.1% 36.0% 0.9 p.p. Net debt 3 1,149,006 1,199,038 4% 1,100,850 1,199,038 9% Net debt 3 (excluding SFH) 244, ,649-16% 7, ,649 2,850% Shareholders equity 2,419,495 2,434, % 2,330,501 2,434,551 4% Net debt³ / Shareholders equity 47.5% 49.3% 1.8 p.p. 47.2% 49.3% 2.0 p.p. Total assets 4,880,080 4,921, % 4,694,424 4,921,914 5% Cash Burn 4 (for the period) (72,149) 47, % (38,673) 47, % Launches 4Q14 1Q15 Chg. (%) 1Q14 1Q15 Chg. (%) Launched projects 7 N/A N/A 2 N/A N/A Potential launch PSV 5 (100%) 1,037,924 N/A N/A 190,085 N/A N/A Potential launch PSV 5 (% Even) 1,014,184 N/A N/A 190,085 N/A N/A Number of units launched 1,805 N/A N/A 233 N/A N/A Usable area of launched units (m²) 128,559 N/A N/A 11,503 N/A N/A Average launch price (R$/m²) 10,216 N/A N/A 17,072 N/A N/A Average price of launched units (R$/unit) 575 N/A N/A 816 N/A N/A Sales 4Q14 1Q15 Chg. (%) 1Q14 1Q15 Chg. (%) Contracted sales 6 (100%) 536, ,281-45% 378, ,281-21% Contracted sales 6 (% Even) 507, ,742-50% 340, ,742-26% Number of units sold 1, % % Usable area of units sold (m²) 75,027 38,465-49% 38,167 38,465 0,8% Average sales price (R$/m²) 7,523 8,135 8% 10,182 8,135-20% Average price of unit sold (R$/unit) % % Consolidated VSO (% Even) 14.4% 8.5% -5.9 p.p. 13.0% 8.5% -4.5 p.p. Launch VSO (% Even) 36.3% N/A N/A 31.3% N/A N/A VSO of remainder (% Even) 5.6% 8.5% 2.9 p.p. 11.5% 8.5% -3.1 p.p. Deliveries 4Q14 1Q15 Chg. (%) 1Q14 1Q15 Chg. (%) Delivered PSV 7 (100%) 590, ,361-52% 388, ,361-27% Delivered PSV 7 (% Even) 582, ,363-63% 367, ,363-41% Number of projects delivered % % Number of units delivered 1, % % Land 4Q14 1Q15 Chg. (%) 1Q14 1Q15 Chg. (%) Land Bank (100%) 6,774,257 7,057,976 4% 5,947,167 7,057,976 19% Land Bank (% Even) 6,105,485 6,309,720 3% 5,508,129 6,309,720 15% 1 Excluding only the effects of the financial charges recognized under costs (corporate debt and financing for lot acquisitions and production). 2 Includes deduction of the effective rate of PIS and COFINS tax for each project in the respective periods, and excludes effects from adjustment to present value. 3 Divergent from Note 28.2 due to exclusion of Assignment of Receivables, therefore consisting of the sum of liabilities related to loans, financings and debentures, net of cash and cash equivalents and pledged amounts. 4 Cash burn subtracted from dividends and repurchase of shares. 5 PSV: Potential Sales Value, i.e. result or potential result from the sale of all units of a real estate development, based on the list price at time of launch. 6 Value of the contracts signed with clients involving sales of finished units or units for future delivery from a specific project (net of sales commissions). 7 Amount considering sales price at the time of launch. Page 4 of 33

5 % 35% 25% 15% 5% -5% -15% -25% -35% OPERATING PERFORMANCE LAUNCHES During 1st quarter, Even focused on the trade of units in inventory and did not make any launch in the period. Launches (Even's share) Launches (partners) , Q14 2Q14 3Q14 4Q14 1Q15 The next launches will mainly depend on the market demand and sales performance of products in inventory. The company carries on believing in its strategy of (i) products focused on the final user, (ii) operation in more resilient venues of the country, as well as (iii) the continuance of a varied portfolio of products in land bank. SALES The sales contracted in the 1 st quarter accounted for R$ million (R$ million for Even s share). The speed of sales (SOS) of the quarter was 8.5%. The sale of remaining products experienced a 10%-reduction when compared to the sales of remaining products in the 1 st quarter of Inventory Sales Launch Sales Sales (R$ million) Inventory SOS Launch SOS Quarterly SOS 31% 22% 36% 13% 13% 14% 10% 8% 10% 12% 11% 9% 6% 8% Q14 2Q14 3Q14 4Q14 1Q15-10% Page 5 of 33

6 The leadership position in the venues where we operate allows us to have relevance to create unique and impactful campaigns. This is the case of Even Day, a sales event that took place simultaneously in São Paulo, Rio de Janeiro and Porto Alegre in 1Q15. In this event, a basket of products with special conditions is offered to the clients, which privileges the trade of finished units or near to be delivered. The 1Q15 sales opening per year of product launch can be verified in the table below: Year of launch Total sales (R$ 000) Even Sales (R$ 000) Usable area (m 2 ) Até ,515 55,138 10, ,850 42,264 14, ,024 28,784 (4,006) , ,556 17, Total 297, ,742 38, Units The table below shows the 1Q15 sales opening per segment of product launch: Segment Total sales (R$ 000) Even Sales (R$ 000) Usable area (m 2 ) Affordable housing 23,392 21,120 4, Emerging 113,034 96,944 24, Middle 7,462 6,075 (292) - Upper-middle 47,259 35,457 7, High 39,269 35,136 4, Luxury 21,976 17,438 1, Mixed use (2,713) (1,356) (152) (4) Hotel 19,794 19, Lot 4, ,812 6 Office 23,245 22,337 (8,694) 51 Total 297, ,742 38, Units Finally, the table below shows the 1Q15 trade opening per region of product launch: Region Total sales (R$ 000) Even Sales (R$ 000) Usable area (m 2 ) São Paulo 118, ,260 13, Rio de Janeiro 39,249 39,516 6, Rio Grande do Sul 140, ,359 18, Minas Gerais (1,185) (394) (2) - Total 297, ,742 38, Units We point out that in 1Q15, the south region sales were highly representative, recording 41.1% share in net sales (Even s share). HOUSING We started Even Vendas 7 years ago, which has successfully operated in the trade of our undertakings. Today, this channel is already responsible for most of the sales, which confirms the decision agreed that we took in Based on this performance, we identified the opportunity to create a new real estate agency to complement the work already carried out by Even Vendas. Page 6 of 33

7 That is why we created Even More, with operation focused on São Paulo market. Even More has arrived in a moment of many challenges in our sector that is why it will be a new ally to the trade of our units, side by side with Even Vendas, whose structure remains unchanged. Both companies will have independent operations, structures and strategies. This new strategy will encourage a healthy competition, raising both companies performance, with resulting increase of Even total sales. This measure reasserts our fussy and innovative spirit, which has always guided our trajectory and whose purpose is to turn Even more competitive. Even Vendas today counts on 681 realtors and was responsible for 60% of Even total sales in 2015, in its operation area (SP and RJ). In São Paulo, Even Vendas participation was of 66%. The graph below shows Even Vendas participation in total sales accrued (Even s share) of 2014 and 2015: Even Vendas (%) Other Brokers (%) M14 6M14 9M14 12M14 3M15 INVENTORY We ended the 1 st quarter with an inventory of R$ 2.8 billion in potential value of sales (Even s share), which represents 23.9 months of sales (in the sales pace of the last 12 months). The finished inventory represents 11% of the total inventory, 1 p.p. higher than the 4th quarter of 2014 (from R$ million in 4Q14 to R$ 307 million in 1Q15). It is worth stressing out the strong volume of deliveries in the last 12 months (which totaled R$ million in VGV Even s share, considering the sales prices at the launch time). Estimated year of completion Inventory at market value (R$ 000) % Value Projects Units % Units Completed units 307,025 11% % ,607 14% % ,702 31% 28 1,622 32% ,043,330 37% 18 1,552 31% ,012 7% % Total 2,809, % 162 4, % It is important to stress out that the inventory of units delivered has been pulverized into 87 different undertakings and which represent 855 units. Page 7 of 33

8 Estimated year of completion PSV of concluded units 11% 14% PSV of units under construction 75% Inventory at Market Value The graph below shows the percentage sold of undertakings separated by year of completion prediction. % sold % not sold Inventory sales amount (R$ million) % 18% % 35% % 56% 1, % 61% 190 The units for sale indicate a potential gross margin of 33.4%, assuming the total costs of units in inventory (excluding the cost to incur of units not launched of phased undertakings in the total of R$ million). For this gross margin calculation, we have already deduced the rate of PIS and COFINS of each undertaking, as well as trade rates paid to real estate companies. The table below presents the opening of potential sales amount of inventory per year of launch: Launch Year Total PSV (R$ 000) Even s PSV (R$ 000) Projects Units % Units Until , , % , , % ,070, , ,565 31% ,180,574 1,123, ,844 37% Total 3,224,540 2,809, , % And the table below shows our inventory per region: Region Total PSV Even s PSV Completed inventory Inventory under construction (R$ 000) (R$ 000) Projects Units Projects Units São Paulo 2,354,798 2,089, ,905 Rio de Janeiro 434, , Rio Grande do Sul 388, , Minas Gerais 46,665 40, Total 3,224,540 2,809, ,141 Page 8 of 33

9 LAND BANK In the 1 st quarter, two new land plots were acquired with potential sales amount of R$ 134 million (Even s share). The piece of land acquired in Rio Grande do Sul will be paid in its totality by means of physical exchange. PSV of land acquired (Even s share) # of lots acquired SP RJ RS # of lots acquired ,103 1, Q14 2Q14 3Q14 4Q14 1Q Q14 2Q14 3Q14 4Q14 1Q15 With that, our land bank ended the 1st quarter of 2015 in R$ 7.1 billion in potential sales amount (R$ 6.3 billion at Even s share) pulverized into 62 different projects or phases with average VGV of R$ million, in line with our diversification strategy of not to concentrate large VGVs in a single undertaking. Land Bank PSV (Even s share) Land Bank Evolution # of lots or phases in the land bank ,508 6,208 6,494 6,105 6,310 1Q14 2Q14 3Q14 4Q14 1Q15 The tables below supply the opening of our land bank per segment of production and per location: Segment # of launches Area (m²) Expected PSV (R$ 000) Units Lot Usable Total Lot Affordable Housing 1 5,014 8, ,282 24, % Emerging , ,719 4,088 1,433,731 1,420,802 20% Middle , ,982 3,391 1,612,428 1,505,726 23% Upper-middle , ,370 3,265 2,246,756 2,116,115 32% High 4 15,293 35, , ,661 4% Luxury 2 6,141 15, , ,827 3% Mixed use 7 120, ,371 2, , ,310 12% Lot 2 644, ,431 1,186 80,153 64,123 1% Office 2 76,352 38, , ,875 4% Total 62 1,375,030 1,190,772 15,363 7,057,976 6,309, % % Page 9 of 33

10 Region # of launches Area (m²) Expected PSV (R$ 000) Units Lot Usable Total Even São Paulo , ,555 5,622 3,050,430 2,757,273 43% Rio de Janeiro , ,515 4,518 1,981,089 1,981,089 28% Rio Grande do Sul , ,534 4,837 1,722,166 1,267,067 24% Minas Gerais 2 17,739 37, , ,290 4% Total 62 1,375,030 1,190,772 15,363 7,057,976 6,309, % % COMMITMENT PER LAND ACQUISITION According to accounting norms, the plots of land are reflected on an accounting basis only because of the obtainment of final deed, regardless degree of negotiation. The position of land inventory (Even s share) and net land debt (launched and not launched), considering the plots of land already acquired, as well as the advances made and commitments assumed by the company on March 31, 2015, is found below: Lots not launched On balance Off balance Advances for land acquisition¹ 32,360 N/A Land inventory² 516,453 N/A Lots without deed (off balance) ³ N/A 863,155 Total land (at cost) 1,411,968 1 Note 6 - lots of projects not launched yet without deed (installment paid is recorded in the accounting books). 2 Note 6 - lots of projects not launched yet with deed (recorded in the accounting books). 3 Note 26 (2.2) - lots of projects not launched and off-balance. Lots not launched Lots launched Total land debt On balance Off balance On balance Land debt (29,067)¹ ( )² (258,936) (1,151,158) Cash (23,678) (174,509) (4,751)³ (202,938) Financial swap (5,390) (162,935) (99,947)³ (268,271) Physical swap - (525,712) (154,238) 4 (679,950) Total land debt (892,223) (258,936) (1,151,158) 1 Note 10 - debt of lots for which the project has not yet been launched and which have a title deed (included under liabilities, which also reflects the debt from lots whose projects have already been launched). 2 Note 26 (2.2) - lots of projects not launched yet (commitment not reflected in the accounts and complements the amount paid under the item Land Bank). 3 Note 10 - debt of lots for which the project has not yet been launched and which have a title deed. 4 Notes 13 and 26 - physical swap unearned amount. Page 10 of 33

11 According to the graph below, it is possible to verify that the commitment of land payment in cash is low, showing the company competence in capital allocation. Debt from Land Plots Cash Financial Swap Physical Swap R$ 203 million; 18% R$ 680 million; 59% R$ 268 million; 23% It is important to stress out that, from the current land debt to be paid in cash, around 47% will be disbursed only from DELIVERY AND EXECUTION OF PROJECTS The table below shows Even operating capacity: Q15 Active construction sites Projects delivered Units delivered 2,204 2,932 6,425 6,673 7, Total PSV of units delivered (R$ million)¹ 1,214 1,346 2,270 2,186 2, Even s PSV of units delivered (R$ million)¹ 939 1,305 1,876 1,431 2, ¹ Amount considering sales price at the time of launch ¹ Considering sales prices at time of launch. Delivery of Projects¹ (launching PSV in R$ million) Even s PSV of units delivered Partner s PSV of units delivered # of projects In the 1 st quarter, we delivered four undertakings, which equal to R$ 217 million (VGV of launch of Even s share) and 897 units. It is worth mentioning that the deliveries do not occur linearly along the year Q15 Page 11 of 33

12 In the graph below, we can notice the opening of deliveries per launch crop. Deliveries by launch year 2% 11% 24% 4% 28% 17% 98% 89% 52% 55% 61% 24% 13% 22% Delivered 2Q15 to 4Q After 2017 Year Launched PSV (Even s share) 1,528,026 2,070,453 2,516,821 2,422,902 2,079,465 - All undertakings launched up to 2009 have already been delivered, as well as most of the crop launched in 2010, which will be fully completed by After work schedule review, we increased the delivery volume predicted for 2015 from R$ 1.9 billion to R$ 2.1 billion (Even s share, considered the VGV at the launch time), certifying the quality of our controls and operating capacity. Currently, 100% of the works of all our projects are accomplished by Even itself. This high degree of verticalization, along with our control systems, ensures us higher agility in the cost control of our works. We have emphasized that the POC calculation (revenue appropriation in our financial statements) envisages the cost assessed of our works, always revised monthly, reflecting thus the actual company performance. PRODUCTION FINANCING Our strategy consists of contracting production financing to all projects. From all projects and under construction, only two of them, launched in the 2 nd and 3 rd quarters of 2014, have not yet had the financing agreement executed. Our construction-financing index remained high. It is important to stress out that there are installments not yet disbursed in these agreements because the resource release occurs according to the work progress of these projects. Page 12 of 33

13 TRANSFERS The transfer process (bank financing to the clients) remains effective. In line with our strategy, we have kept a high level of transfers completed within 90 days (counted from the issuance date of the individualized enrolment and document regularization up to the transfer agreement issuance), as table below: Percentage of transfers concluded after delivery (per number of units eligible for transfer) 30 days 60 days 90 days On Apr 30, Q12 30% 64% 79% 100% 2Q12 17% 33% 84% 100% 3Q12 18% 30% 73% 100% 4Q12 34% 67% 82% 100% 1Q13 19% 67% 81% 100% 2Q13 49% 72% 82% 100% 3Q13 38% 56% 71% 100% 4Q13 57% 73% 87% 100% 1Q14 31% 71% 85% 100% 2Q14 39% 67% 84% 98% 3Q14 38% 73% 87% 99% 4Q14 36% 67% 84% 96% 1Q15 29% N/A N/A 86% According to the next table, our total reception of clients (units under construction and finished) in the 1 st quarter of the year was of R$ million. Receipt per period (R$ 000) Q14 1Q15 Units under construction 720, ,406 1,082, , , ,930 Completed units 869,762 1,241,414 1,304,886 1,615, , ,522 Total 1,590,512 1,953,820 2,387,449 2,465, , ,452 The volume received of units under construction was kept stable in relation to the 4 th quarter of On the other side, the volume received of units completed experienced a reduction as a result of lower number of deliveries in the period. It is expected that in 2Q15 the volume of deliveries returns to the level observed in the last quarters, bringing the reception volume to a normal level. CANCELLATIONS AND DEFAULT Even does not disclose the ratio between cancellations and gross sales in current quarters, as we believe cancellations in a given quarter have no relation with sales in the same period and this can generate distortions in the analysis. We understand that cancellations have a direct relation with numberless factors that we have been improving, such as: credit analysis, delivery monitoring, portfolio and default level followup. For this reason, we always report our sales figures net of cancellations. Even s policy is to closely monitor the payment behavior of our clients and quickly solve possible problems in order to maintain a compliant portfolio with a high rate of success upon transfer. Page 13 of 33

14 We regularly conduct credit analyses during our entire relationship with our clients to monitor a possible default portfolio evolution. We estimate the volume of cancellations each year, and, so far, we have been in line with our planning. Page 14 of 33

15 ECONOMIC-FINANCIAL PERFORMANCE REVENUE In the 1 st quarter, we had a gross operating revenue of sales and services of R$ million, a decrease of R$ 9.1 million (-1.9%) in relation to the 1Q14 gross operating revenue. The lack of launches in the period combined with the lower volume of sales directly impacted the revenue acknowledgment. Gross Revenue (R$ million) Q14 2Q14 3Q14 4Q14 1Q15 The table below shows the opening of revenue deriving only from sales of real estate property: Recognized Gross Revenue (Development) Year of launch 1Q14 2Q14 3Q14 4Q14 1Q15 R$ 000 % R$ 000 % R$ 000 % R$ 000 % R$ 000 % Up to ,265 47% 253,417 44% 188,380 34% 125,181 21% 108,633 23% ,935 32% 191,972 33% 233,781 42% 199,839 33% 168,656 36% ,469 15% 58,144 10% 85,175 15% 112,966 19% 125,527 27% ,764 6% 74,077 13% 46,049 8% 169,064 28% 66,987 14% Total 477, % 577, % 553, % 607, % 469, % In the 1 st quarter, the taxes on services and revenues reached R$ 11.1 million. Such taxes (PIS, COFINS and ISS) represented an average burden of 2.3% on the gross operating revenue, a decrease of 0.2 p.p. in relation to the 1 st quarter of 2014 (or a decrease of 0.3 p.p. in relation to the 4 th quarter of 2014). After the application of such taxes, the net operating revenue of the 1 st quarter totaled R$ million. GROSS PROFIT AND GROSS MARGIN The gross profit was of R$ million in the 1 st quarter of 2015, a decrease of R$ 14.5 million (-11.2%) in relation to the 1 st quarter of The gross margin in the 1 st quarter was of 33.0%, excluding the effects of financial charges recognized at cost (corporate debt and production financing), 2.3 p.p. lower in relation to the same quarter of prior year. The gross margin decrease is the reflection of a larger representativeness of sales made in the venue of Porto Alegre in total sales. The margin in this venue is lower as most land purchases are made by means of exchange, which in consideration gives us a better return due to the capital allocation reduction in these projects. That is, the lower margin does not necessarily result from a weak operating performance and/or big discount supply. Page 15 of 33

16 , 0% 40, 0% 35, 0% 30, 0% 25, 0% 20, 0% 15, 0% 10, 0% 5,0 % 0,0 % In the last weekend of March, we carried out another Even Day issue, one sales event occurred simultaneously in São Paulo, Rio de Janeiro and Porto Alegre, where we provided our clients with a basket of products with special conditions, privileging the trade of finished units or near to be delivered. The level of discounts practiced was the same of other event issues and did not cause gross margin oscillations in each venue. In 1Q15, the gross margin was influenced by a higher sales representativeness of the Southern region in the company revenue. The gross margin in this venue is lower as most land purchases were made by means of exchange, which in consideration gives us a better return as we reduced the capital allocation in these projects. If the sales in Rio Grande do Sul had kept the revenue representativeness experienced in the last 12 months, the gross margin of the first quarter of 2015 would have been 1.4 p.p. bigger than that reported, that is, 34.4%. In other words, the gross margin decrease is not necessarily a result of a weak operational performance and/or a bigger discounts. 35.3% Gross Profit (R$ million) 38.5% 31.7% Gross Margin (ex-financing) 33.4% 33.0% Q14 2Q14 3Q14 4Q14 1Q15 The table below shows a history since the 1 st quarter of 2012 (13 quarters), evidencing the operating and strategic consistency of the company. We outline the gross margin historic rise. Gross margin (ex-financing) ¹ 1Q12 2Q12² 3Q12² 4Q Q13 2Q13 3Q13 4Q Q14 2Q14 3Q14 4Q Q % 31.2% 31.6% 33.3% 31.8% 32.7% 31.8% 35.5% 34.1% 33.5% 35.3% 31.7% 38.5% 33.4% 34.6% 33.0% LTM gross margin (ex-financing) ¹ 1Q12 2Q12² 3Q12² 4Q Q13 2Q13 3Q13 4Q Q14 2Q14 3Q14 4Q Q % 31.5% 31.0% 31.8% 31.8% 32.2% 32.3% 33.3% 33.5% 33.5% 34.0% 34.1% 34.8% 34.6% 34.6% 34.2% ¹ The 2Q12 e 3Q12 figures are not adjusted to the new accounting practices, thus impacting the LTM margin until 3Q12. As of LTM 4Q12, all figures are adjusted to the new accounting practices. The chart below shows the gross margins: (i) accountably acknowledged, (ii) to appropriate (REF) and (iii) of inventory (with the effects of financial charges apportioned to cost). First quarter of 2015 (R$ million) Gross Margin Backlog Margin 1 Inventory Gross Margin 2, 3 Net revenue , ,145.8 Cost of goods sold (352.5) (1,236.1) (2,212.3) Construction and lot (313.4) (1,236.1) (2,095.6) Production financing (21.9) - (26.1) Corporate debt (17.3) - (90.6) Gross profit Gross margin (%) 24.6% 36.0% 29.7% Gross margin (%) excluding financing (production and corporate) 33.0% 36.0% 33.4% ¹ When realized, backlog and inventory margins will benefit from service revenue and the indexation of the portfolio to the INCC. ² Excluding the cost of not launched units of phased projects amounting to R$ million. ³ Costs incurred and to be incurred. Page 16 of 33

17 It is important to note that Even updates the budgeted cost of undertakings monthly, not only considering INCC variation in the period, but also considering the budgeted cost effectively updated by the technical department. Our budgeted cost reflects the real impact on work force, raw materials and equipment, as well as possible changes made by the technical department during the undertaking course. This systematic calculation results in lower fluctuation of the margins reported, regardless the market changes and constant cost pressures in the industry. The table below shows annual costs to incur from all undertakings under construction, including units sold and units not sold (in inventory). Costs to be incurred (1Q15) Year Units sold Inventory units Total ¹ (R$ million) (R$ million) (R$ million) , , ,6 885, ,9 387, ,3 48,0 Total 1, , ,0 ¹ Including the total cost in phased projects (R$ million). COMMERCIAL, GENERAL AND ADMINISTRATIVE EXPENSES In the 1 st quarter, the commercial, general and administrative expenses (SG&A) totaled R$ 85.2 million, decrease of R$ 24.4 million (-22.2%) in relation to prior quarter. 1Q14 2Q14 3Q14 4Q14 1Q15 Selling expenses 38,293 42,586 42,281 54,416 33,858 General and administrative 43,733 48,573 51,050 42,840 43,998 Management fees 1,984 1,790 1,821 1,792 1,800 Other operating (income) expenses 5,853 7,815 10,760 10,534 5,555 Operating expenses 89, , , ,582 85,211 % of net revenue 18.9% 17.6% 19.2% 18.1% 18.2% Commercial expenses The 1 st quarter commercial expenses, which totaled R$ 33.9 million, reflect expenses with sales and inventory, some of launch expenses made at the end of 2014, as well as expenses with the service center and equity and building management, both strongly related to undertaking deliveries. General and administrative expenses The 1 st quarter general and administrative expenses were kept in a level similar to that of the same period in previous year. This was possible due to the company personnel structure adjustment carried out during 2014 and in February of 2015 and the internal campaigns to rationalize the utilization of several services. In the 1 st quarter, it is possible to note the positive impact of the operating expense control in the result, which is the lowest recorded in the last 12 months. Other operating expenses (revenues) They totaled R$ 5.5 million in 1Q15, a decrease of 47.3% when compared to 4Q14, mainly as a result of decrease of expenses with guarantees and contingencies. Page 17 of 33

18 , 0% 20, 0% 10, 0% 0,0 % -10,0% -20,0% -30,0% -40,0% -50,0% FINANCIAL RESULT The 1 st quarter financial result was positive in R$ 24.9 million, stable in relation to the same period of 2014 (R$ 25.3 million). OPERATING PROFIT In the quarter, the operating profit was of R$ 54.3 million, decrease of R$ 10.2 million (-15.9%) in relation to the 1 st quarter of This variation was mainly due to the lack of launches in the period and lower sales volume in the period, as mentioned in prior sections. Operating Income (R$ million) Q14 2Q14 3Q14 4Q14 1Q15 EBITDA The revenue mix (impacted by South region sales) and gross margin of the quarter affected the EBITDA, causing less dilution of costs and commercial and administrative expenses. EBITDA (R$ million) 20.5% 17.2% 15.1% EBITDA Margin 16.0% 15.3% Q14 2Q14 3Q14 4Q14 1Q15 EBITDA reconciliation ¹ 1Q14 2Q14 3Q14 4Q14 1Q15 Chg. (%) Earnings before income taxes and social contribution 64,570 69, ,481 80,863 54, % (+) Financial result (25,332) (24,033) (37,599) (28,612) (24,880) -13.0% (+) Depreciation and amortization 4,410 5,616 6,621 4,016 3, % (+) Expenses apportioned to cost 38,099 35,963 35,490 40,350 39, % EBITDA 81,747 86, ,993 96,617 71, % EBITDA margin (%) 17.2% 15.1% 20.5% 16.0% 15.3% -0.6 p.p. LTM EBITDA 466, , , , , % LTM EBITDA margin (%) 19.0% 18.1% 18.1% 17.1% 16.8% -0.4 p.p. ¹ EBITDA: earnings before taxes, interest, financial charges recognized to cost, depreciation and amortization. Page 18 of 33

19 , 0% 15, 0% 10, 0% 5,0 % 0,0 % -5,0% -10,0% -15,0% -20,0% NET PROFIT AND NET MARGIN In the quarter, the net profit was of R$ 31.1 million, representing a decrease of R$ 22.6 million in relation to the same period of 2014, the net margin (before participation of minority shareholders) was of 9.6%, with reduction of 1.9 p.p in relation to 1Q14. It is worth mentioning that the participation of minority shareholders was more representative in this quarter as a result of strong relevance of sales in Porto Alegre venue. Net Income (R$ million) Net Margin* 17.4% 11.5% % % % 31 1Q14 2Q14 3Q14 4Q14 1Q15 * Net Margin: based on net income before minority interest. Due to the long cycle of the operation, we believe that the company performance analysis by means of use of margins extracted from the financial statements (gross, EBITDA and net margins) must consider a period longer than only one quarter. Margem Líquida ¹ 1Q12 2Q12² 3Q12² 4Q Q13 2Q13 3Q13 4Q Q14 2Q14 3Q14 4Q Q % 8.7% 12.4% 17.1% 12.5% 12.4% 12.8% 14.5% 13.6% 13.4% 11.5% 9.7% 17.4% 11.1% 12.4% 9.6% The following table shows the net margin for the 12 months before each quarter. Here we notice low volatility: Margem Líquida ¹ LTM 1Q12 2Q12² 3Q12² 4Q Q13 2Q13 3Q13 4Q Q14 2Q14 3Q14 4Q Q % 10.5% 10.4% 12.5% 12.5% 12.8% 13.7% 14.2% 13.4% 13.4% 13.2% 12.4% 13.1% 12.4% 12.4% 12.0% ¹ Net Margin: based on net income before minority interest. ² The 2Q12 and 3Q12 figures are not adjusted to the new accounting practices, thus impacting the LTM margin until 3Q12. As of LTM 4Q12, all figures are adjusted to the new accounting practices. FINANCIAL STRUCTURE On March 31, 2015, cash and cash equivalents was of R$ million, 8.3% lower when compared to December 31, Loans, production financings and debentures totaled R$ 1,860,3 million (remaining stable in relation to the R$1,870,3 million on December 31, 2014), of which R$ 992,4 referred to production financing debt (Housing Finance System - SFH), which is fully guaranteed by the undertaking own receivables, and the difference of R$ 867,9 million corresponding to land, debenture, CRI debts and swap. Page 19 of 33

20 The table below shows our capital structure, leverage and receivables from finished units on December 31, 2015: On 03/31/2015 (R$ million) Financing to production % 65% of production Land (CCB) % and land financing Debentures % CRI % Swap (CCB) % Gross debt 1, % Cash (661.2) Net debt 1,199.0 Shareholders equity 2,434.6 Net debt /Shareholders equity 49.3% Receivables from completed units on 03/31/2015 R$ 620,2 million The table below shows some leverage indicators and our financing characteristics: Indicators Total Debt SFH debt¹ Corporate debt Average cost - TR % p.a % CDI Duration 1.5 year 1.4 year 1.8 year ¹ Considers the total outstanding balance (100%) of each SPE, even if Even s actual percentage in each project. Amortization of Debentures Principal, CRI, Bank Credit Certificates (CCB) and Swap (R$ million) Debentures CRI CCB (land) Swap Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Ano % do total 15% 36% 37% 12% % acumulado 15% 51% 88% 100% We emphasize that only 20.5% of our corporate debts have due date for the next 12 months. In March, with cash resources, we amortized the remaining balance of the 1 st series of our 5 th issuance of debentures (R$ 62.5 million of principal and R$ 4.1 million of interests), as well as we amortized 33% of the principal of the 2 nd series of the 5 th issuance of debentures (R$ 41.7 million of principal and R$ 5.5 million of interests). The payment of principal and interests of this debenture totaled R$ million Page 20 of 33

21 CASH GENERATION / CASH BURN 1 st quarter cash consumption, excluding dividends and share buyback, was R$ 47.9 million, as shown in the chart below: Cash Burn (R$ million) 1Q15 Initial net debt 1,149.0 Final net debt 1,199.9 Cash Burn 50.0 Dividends - Share buyback (2.1) Cash Burn (ex-dividends and buyback) 47.9 In the 1 st quarter, the company bought back shares and then the first buyback program was 100% finished. Despite the lower disbursement with land payment (in line with our strategy), the cash consumption in the period was of R$ 47.9 million. Such result is due to the lower volume of receptions, resulting from the lower volume of deliveries (as already expected in our construction schedule). It is expected that, with the delivery volume expected for the year, from 2Q15 the levels of reception return to the levels presented in the prior quarters. We outline that the cash position and leverage remain in sound levels. The trend of lower volume of launches and land purchase this year, combined with the share amount at the Stock Exchange, led us to the approval of a new share buyback program intended for optimization of capital structure (see further details in the section Subsequent Events ). ACCOUNTS TO RECEIVE FROM CLIENTS We closed the 1 st quarter with R$ million of receivables from finished units. These amounts are mostly under transfer process to the banks (client s financing). Accounts to receive recognized was kept stable in relation to the 4 th quarter of 2014, going from R$ 2.0 billion in 4Q14 to R$ 2.1 billion in 1Q15 (+2.0%). The balance of accounts to receive from units sold and not yet finished is not fully reflected as assets in the financial statements, since the balance is recognized as the construction develops. According to the schedule below, out of total receivables of R$ 4,073.1 million (accounts to receive recognized + accounts to receive to recognize in the balance sheet), R$ million will be received during construction period, i.e., receivables from unfinished units, and the amount of R$ 3,583.9 million would have the following receivable schedule, considering the assumption of full receipt within 120 days as of the undertaking delivery date: Earned and unearned accounts receivable Receivables expected During construction After construction Year (R$ million) (R$ million) Total accounts receivable (R$ million) , , , , Total , ,073.1 Page 21 of 33

22 The balance of accounts to receive is adjusted by INCC variation until the key delivery and subsequently by the price index variation (IPCA or IGPM), plus annual interest rate of 12%, recognized on a pro rata temporis basis. The balance of accounts receivable is net of swaps. It is worth noting that these amounts may be settled by the client, transferred to the banks (client s financing) or securitized. OWERSHIP STRUCTURE Owership Structure (on 04/30/2015) Board of Directors and Executive Board Treasury Free Float 9,7% 2,1% 88,1% (Total shares: 233,293,408) Page 22 of 33

23 OTHER INFORMATION ACKNOWLEDGMENTS Even is twice champion in the Guia Exame de Sustentabilidade For the second year in a row, Even was elected the Most Sustainable Company in the Civil Construction Sector, in the Guia Exame de Sustentabilidade. The award granting, on its 15 th issue and counting on more than 220 companies enrolled, intends to encourage models in the business environment, which favor socio-environmental practices. The outline this year was the Ação Vizinho. Even is awarded by Seconci São Paulo and Rio de Janeiro In the last weeks, Even was granted two important awards for its practices in Labor Health and Safety, promoted by São Paulo and Rio de Janeiro institutions. On Nov 12, 2014, we conquered the Silver classification in the category Environmental Management of Work Surrounding, of Seconci Award SP (Serviço Social Indústria Construção Mobiliário do Estado de São Paulo). The company stood out for the actions adopted in the work ClubPark Remédios to improve the relationship with the neighbors, minimizing environmental risks and disturbances generated during the undertaking construction. On Nov 25, 2014, we were awarded the Silver category of Vitae Rio Award Safe Construction, Live Company, which evaluates all company safety processes. This award is a Seconci-Rio and Sinduscon initiative and was created to acknowledge construction companies that invest in the safety and health standard excellence and which value the life quality of its professionals. SUBSEQUENT EVENTS In an Administration Board meeting held on April 22, 2015, the new share acquisition program was approved, shares to be kept in the treasury and later disposal or cancellation. The operation purpose is the (i) shareholders value maximization, in view of the estimate amount of the company shares at the Stock Exchange, as well as (ii) utilization in the field of the share purchase option plan of the company. The new program approved the acquisition up to 11,664,670 common shares (or 5% of total shares) within 365 days counted from April 23, 2015, ending on April 22, So far, no buyback has been made in view of the silent period in which the company was found. Page 23 of 33

24 ANNEXES ANNEX 1 Result Statement Consolidated Result Statement (in thousands of reals) (Unaudited by the independent auditors) INCOME STATEMENT 1Q14 2Q14 3QT14 4Q14 1Q15 Gross revenue from sales and/or services 487, , , , ,775 Net revenue from sales and/or services 475, , , , ,638 Development and resale of properties 477, , , , ,802 Service rendering 10,446 12,109 13,571 14,202 8,973 Gross revenue deductions (12,390) (16,054) (15,294) (16,173) (11,137) - Incurred cost of goods sold (345,933) (427,606) (374,868) (443,248) (352,534) Gross profit 129, , , , ,104 Gross Margin 27.2% 25.5% 32.0% 26.7% 24.6% Gross Margin (ex-financing) 35.3% 31.7% 38.5% 33.4% 33.0% Operating Income (Expenses) (89,863) (100,764) (105,912) (109,582) (85,211) Selling (38,293) (42,586) (42,281) (54,416) (33,858) General and Administrative (43,733) (48,573) (51,050) (42,840) (43,998) Management Fees (1,984) (1,790) (1,821) (1,792) (1,800) Other operating income (expenses), net (5,853) (7,815) (10,760) (10,534) (5,555) Operating income (loss) before profit of subsidiaries, financial result 39,693 45,295 70,882 52,249 29,893 Share of profits of subsidiaries (455) 2-2 (452) Financial Result 25,332 24,033 37,599 28,612 24,880 Financial Expenses (6,053) (9,188) (7,816) (11,882) (9,846) Financial Income 31,385 33,221 45,415 40,494 34,726 Income before Income Tax and Social Contribution 64,570 69, ,481 80,863 54,321 Income Tax and Social Contribution (9,937) (13,405) (12,523) (13,482) (9,439) Current (12,045) (16,166) (12,698) (15,536) (10,029) Deferred 2,108 2, , Net Income before Minority Interest 54,633 55,925 95,958 67,381 44,882 Minority Interest (820) (7,256) (13,550) 141 (13,824) Net income for the period 53,813 48,669 82,408 67,522 31,058 Net Margin 11.3% 8.5% 14.9% 11.2% 6.6% Net Margin (without minority interest) 11.5% 9.7% 17.4% 11.1% 9.6% Page 24 of 33

25 ANNEX 2 Balance Sheet Consolidated Balance Sheet (in thousands of reals) (Unaudited by the independent auditors) ASSETS 03/31/ /30/ /30/ /31/ /31/2015 Cash and cash equivalents 645, , , , ,242 Accounts receivable 1,781,542 1,759,275 1,800,587 1,640,415 1,735,584 Properties for sale 725, , , , ,765 Taxes and contributions receivable 8,339 11,237 12,427 8,965 10,780 Other accounts receivable 91, , ,402 88,582 95,043 Current assets 3,252,850 3,332,342 3,304,649 3,205,006 3,250,414 Accounts receivable 435, , , , ,832 Properties for sale 866, ,575 1,102,242 1,165,565 1,198,656 Current accounts with partners at the developments 80,187 31,294 41,462 39,673 46,591 Advances for future capital increase ,805 28,191 Related parties Other accounts receivable 5,284 8,213 25,896 24,962 25,424 Investments 17,526 14,045 9,469 22,947 21,596 Property, plant and equipment 28,180 30,823 26,554 24,884 23,544 Intangible assets 8,239 8,986 9,243 9,302 8,982 Non-current assets 1,441,574 1,433,310 1,538,611 1,675,074 1,671,500 Total Assets 4,694,424 4,765,652 4,843,260 4,880,080 4,921,914 LIABILITIES AND EQUITY 03/31/ /30/ /30/ /31/ /31/2015 Suppliers 67,503 94,031 73,366 64,430 71,580 Payables for land acquisition 33,366 41,443 45,169 37,357 38,571 Loans and financing 516, , , , ,815 Assignment of receivables 5,107 4,726 3,501 2,691 2,088 Debentures 112, , , , ,852 Taxes and contributions payable 39,269 46,649 47,177 42,809 38,965 Taxes payable 42,289 41,544 41,925 38,376 39,001 Advances from clients 28,408 31,570 18,797 4,434 9,092 Current accounts with partners at the developments 10,804 10,001 16,121 11,114 10,428 Proposed dividends 67, ,948 59,948 Provisions 25,000 15,000 22,500 22,500 27,008 Other accounts payable 86,607 50,167 84,117 59,450 65,642 Current liabilities 1,034, ,633 1,073,071 1,017,430 1,066,990 Payables for land acquisition 58,066 51,305 59,880 88,145 95,194 Provisions 65,483 61,579 70,176 85,950 93,971 Taxes payable 10,334 8,094 7,523 8,732 7,142 Loans and financing 926,490 1,131, ,866 1,054,453 1,055,613 Assignment of receivables 2,073 1,783 1,749 1,735 1,741 Debentures 190, , , , ,000 Deferred income tax and social contribution 47,930 45,169 44,994 42,940 42,350 Other accounts payable 27,903 16,190 13,609 19,702 24,362 Long-term liabilities 1,329,269 1,507,019 1,357,126 1,443,155 1,420,373 Capital Stock attributed to controlling shareholders 1,083,266 1,683,266 1,683,266 1,683,266 1,683,266 Treasury shares (21,503) (28,934) (36,934) (61,440) (63,384) Transaction cost (15,775) (15,775) (15,775) (15,775) (15,775) Stock Options Plan 27,826 28,856 29,577 30,298 31,004 Profit reserve 947, , , , ,681 2,021,786 2,064,054 2,139,183 2,122,972 2,152,792 Minority interest 308, , , , ,759 Shareholder s Equity 2,330,501 2,352,000 2,413,063 2,419,495 2,434,551 Total liabilities and shareholders equity 4,694,424 4,765,652 4,843,260 4,880,080 4,921,914 Page 25 of 33