Direcional Engenharia S A : 4Q23 Earnings Release

EARNINGS RELEASE

4Q23

Belo Horizonte, March 11th, 2024 - Direcional Engenharia S/A, one of the largest homebuilders and real estate development companies in Brazil, focused on the development of low-income and medium-income projects, and operating in several regions of the Brazilian Territory, discloses here its operating and financial statements for the fourth quarter of 2023 (4Q23). Unless otherwise expressed, the information in this document is expressed in the national currency (Brazilian Reais - R$ or BRL) and the Potential Sales Value (PSV) demonstrates the value consolidated (100%). The Company's consolidated financial statements are prepared in accordance with accounting practices adopted in Brazil, which are based on Brazilian Corporate Law and on the regulations issued by the Brazilian Securities Commission (CVM).

4Q23 AND 2023 EARNINGS RELEASE

• RECORD-HIGHNET INCOME: BRL 332 MILLION IN 2023, A 74% GROWTH OVER 2022
• • • NET MARGIN OF 15.7% IN 4Q23 AND 14.1% IN 2023
  • THE HIGHEST NET REVENUE IN COMPANY'S HISTORY: BRL 2.4 BILLION IN 2023
  • • ADJUSTED GROSS MARGIN1 OF 37.1% IN 4Q23 AND 36.7% IN 2023
    • • ADJUSTED ANNUALIZED ROE2 OF 20.1% IN 4Q23
  • PAYMENT OF BRL 0.47 PER SHARE IN DIVIDENDS, TOTALING BRL 81 MILLION

OTHER HIGHLIGHTS

• Record-highNet Sales: BRL 4 billionin 2023 and BRL 1.2 billionin 4Q23, +33%and +76%versus the same periods of the previous year.
• Launches reached BRL 4.9 billionin 2023, a 34%increase over 2022: the highest annual volume in Company's history.
• In 4Q23, Net Income reached BRL 100 million, a 45%growth in relation to 3Q23 and a 27%growth in relation to 4Q22.
• 4Q23 G&A Expenses over Total Gross Revenue3 showed a 110-bpsdilution when compared to 4Q22.
• Sales Expenses remained flat in 2023 in comparison with 2022.
• Deferred Revenue from Real Estate Sales (Backlog Revenue) reached BRL 1.7 billionat the end of 2023, +60%versus 2022.
• Backlog Margin of 42.5%at the end of 2023, an increase of 280 bpsover 2022.

1 - Adjusted Gross Margin: adjustment excluding interest capitalized in COGS and the effects of Pode Entrar program.

2 - Adjustment excluding non-recurring expenses with sales of receivables and equity swap result.

3 - Total Gross Revenue: Adjustment including gross revenue from non-consolidated SPVs (jointly controlled or non-controlled entities).

1

EARNINGS RELEASE

4Q23

TABLE OF CONTENTS
MESSAGE FROM THE BOARD	3
MAIN INDICATORS	6
LAUNCHES	7
CONTRACTED SALES	8
NET SALES SPEED (VSO)	9
CANCELED SALES	10
INVENTORY	10
TRANSFERS	11
PROJECTS DELIVERED	11
LANDBANK	12
LAND ACQUISITION	12
ECONOMIC AND FINANCIAL PERFORMANCE	12
GROSS REVENUE	12
REVENUE FROM REAL ESTATE SALES	13
REVENUE FROM SERVICES	13
NET REVENUE	14
GROSS PROFIT	14
GENERAL AND ADMINISTRATIVE EXPENSES (G&A)	15
SALES EXPENSES	16
EQUITY INCOME	16
OTHER OPERATING INCOME AND EXPENSES	16
FINANCIAL RESULTS	17
EBITDA	17
NON-CONTROLLING INTERESTS IN SCP AND SPV ("MINORITY INTEREST")	18
NET INCOME	18
DEFERRED RESULTS FROM REAL ESTATE SALES (BACKLOG RESULTS)	19
BALANCE SHEET HIGHLIGHTS	20
CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	20
ACCOUNTS RECEIVABLE	20
INDEBTEDNESS	20
CASH GENERATION (CASH BURN)	22
DIVIDENDS	22
CONSOLIDATED BALANCE SHEET	24
CONSOLIDATED INCOME STATEMENT	25
GLOSSARY	26

2

EARNINGS RELEASE

4Q23

MESSAGE FROM THE BOARD

It is with great pleasure that we present to our shareholders and the market our results for 4Q23 and 2023. If, exactly one year ago, we were talking about taking the best of the opportunities there were ahead of us, we believe that we have taken a very assertive path in this direction.

Looking back, we can tell that 2023 was the best year in our history. We delivered results that were unthinkable not long ago, taking the Company to another level. Over the year, we successfully concluded our follow-on offering, relying on a very precise reading of the timing and the window of opportunities before us, executing everything we intended to do effectively.

We closed 2023 with over 17,000 new housing units launched. This volume represents a Potential Sales Value of BRL 4.9 billion (BRL 4.3 billion % Company), a 34% growth when compared to the launches in 2022. This is the highest level ever achieved by Direcional Group and keeps us focused in achieving the goals we have set for the coming years.

In addition, for the first time in our history, we sold BRL 4.0 billion in one year (BRL 3.1 billion % Company). Those who make us move forward and do our best, purchased 14,785 housing units: our customers. In 4Q23, we had a net contracted PSV of over BRL 1.2 billion, with an essential contribution both from products sold under Direcional and Riva brands, besides the projects sold within the Programa Pode Entrar. The latter is an initiative by the municipality of São Paulo that aims to purchase properties to be built by private entities, within the scope of the social housing policies, reducing costs and delivery times and increasing the number of families benefiting.

As we announced to the market at the end of 2023, the contract we signed with Companhia Metropolitana de Habitação de São Paulo provided for the sale of 990 housing units, totaling a PSV of BRL 206 million (BRL 206 million % Company).

Initiatives like this have been more and more present on the agenda of city halls and state governments across Brazil and could represent a big step towards expanding access to housing for families with limited purchasing power, further contributing to the popular housing segment in the country.

We had already begun 2023 with an optimistic view of the market and the demand for our products. Not only did we accelerate the operation throughout the year, having identified good windows of opportunity, but we are even more prepared to seek an even better 2024.

The chart on the left shows part of the evolution of our operations in the latest years, showing significant figures for our launches. In 2023, we achieved approximately BRL 4.9 billion, which translated into a 29% compound annual growth rate during the period concerned.

The chart on the right presents our launches, net sales, and net revenue for 2023. Looking at the standard schedule of our business - first we launch, then we sell and, finally, we build, with the respective revenue recognition -, we should note that the gap between the volume of launches and the current level of revenue suggests that if the volume of launches is maintained over the coming quarters, revenue should continue to grow, reaching the volume of launches.

	Launches Track Record			Volume: Launches, Sales and Total Net Revenue¹
	(PSV 100% - BRL million)				(PSV 100% - BRL million)
					4,857
								+22%	+50%
	CAGR:	+29%	3,636
				3,138
		1,946			4,857
	1,681	1,763				3,991
						3,235
832	925
2016 2017 2018	2019 2020 2021 2022 2023		Launches	Net Sales	Total Net Revenue¹

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EARNINGS RELEASE

4Q23

Such a year with such results has positively affected the Company's financial earnings. In this sense, we saw our Net Revenue reach its highest annual figure in history, BRL 2.4 billion, even though a significant part of the sales in the year came from products developed in partnership, which are not consolidated in the Company's balance sheet - and therefore contribute to the result not through Net Revenue, but through Equity Income. In 4Q23, Net Revenue totaled BRL 635 million, a growth rate of 12% over 3Q23 and 15% over 4Q22.

In order to evaluate the Total Net Revenue1 earned from the sale of Direcional Group's products, we should add the revenue from non-consolidated projects to the accounting Net Revenue from Sales. Thus, Total Net Revenue1 achieved BRL 892 million in 4Q23 (+42% over 4Q22) and BRL 3.2 billion in 2023 (+26% over 2022), which still corresponds to 66% of the volume launched by the Direcional Group, as commented above.

Maintaining the solid profitability track record that we have delivered period after period, always focusing on efficiency in product pricing and construction execution, we achieved an Adjusted Gross Margin2 of 37.1% in 4Q23, excluding interest capitalized in COGS and also the effect of the Pode Entrar program, given the particular characteristics of this program in relation to a traditional development project. This recurring growth in recent quarters has also been reflected in the indicator's upward trajectory year-on-year. In that sense, in 2023, Adjusted Gross Margin2 reached 36.7%, 110 bps above the figure reported in 2022, also disregarding the Pode Entrar program, as mentioned above, totaling an Adjusted Gross Profit2 of BRL 856 million (+11% over the previous year).

	Adjusted Gross Margin² Track Record
			(BRL million and %)
36.0%	35.4%	35.0%	36.3%	36.3%	36.5%	37.0%	37.1%

168	207	201	194	202	221	206	227
1Q22	2Q22	3Q22	4Q22	1Q23	2Q23	3Q23	4Q23
	Adjusted Gross Profit²	Adjusted Gross Margin² Ex-Pode Entrar

G&A totaled BRL 45 million in 4Q23, in line with the figures reported in 3Q23. When analyzing G&A over Total Gross Revenue1, we find a 4.9% index, representing a significant dilution of 50 bps over the previous quarter and 110 bps when compared to the same quarter of 2022. In 2023, G&A totaled BRL 175 million, accounting for 5.3% of the Total Gross Revenue1, a 40-bps dilution when compared to 2022.

The same can be observed in the Sales Expenses. In the 4th quarter, it totaled BRL 57 million and its representativeness over Development Gross Revenue came in at 8.6% in the period, reducing 20 bps over 3Q23 and 40 bps over 4Q22. In 2023, Sales Expenses totaled BRL 202 million, an amount lower than that reported one year earlier in nominal terms, even with a 33% higher sales volume! Thus, with the growth seen in the Development Gross Revenue in the period, its representativeness went down from 9.1% to 8.4%, which translated into a dilution of 70 bps.

As in recent quarters, there was a significant contribution from the projects of non-controlled and jointly controlled SPVs to the result for 4Q23 and, consequently, for the year. As already known, the sale of units from these developments does not directly contribute to the revenue as the construction works progress - as is the case with consolidated projects. The result is instead recognized as Equity Income, under the percentage of interest in that SPV. As a result, Equity Income totaled BRL 54 million in 2023, a 147% growth over 2022.

In 4Q23, due to a change in accounting understanding, we made a reclassification between revenue lines, regarding the monetary correction of the reimbursement of expenses related to real estate purchase, which are owed by customers, and in certain cases, anticipated by the Company - more specifically the ITBI (the real estate transfer tax) and notary expenses related to the registration of properties. As a result, this revenue is now accounted for as Financial Revenue, instead of Other Operating Revenue, as was previously the case.

This reclassification, made during the quarter, totaled approximately BRL 40.7 million and took into account the amounts recognized in previous quarters. We should note that the expenses related to this anticipation we make to our customers continue to be accounted for as Other Operating Expenses. Finally, we should emphasize that this reallocation between lines in the Income Statement does not mean any change in the business nor does it have any impact on the Company's results, either for the current year or for subsequent years.

With that, Direcional Group's Net Income totaled BRL 332 million in 2023, with Net Margin at 14.1%. In the quarter, our Net Income reached BRL 100 million, with Net Margin at 15.7%. To evaluate what the Company's recurring profit would be without

4

EARNINGS RELEASE

4Q23

any interference of specific events, Operating Net Income3 reached BRL 324 million in the year and the Operating Net Margin3 came in at 13.8% in the period, which translates into an expressive growth of over 500 bps when compared to 2022. Moreover, our Adjusted Annualized ROE3 reached 20.1% in 4Q23, showing a continuous growth when compared to previous quarters, resulting from the growth and efficiency gains experienced by our operations over the last years.

We closed the year with BRL 72 million in net cash position. In that		Net Debt and Leverage Ratio Track Record
context, we had a negative leverage ratio (measured by Adjusted			(BRL million and %)
Net Debt4 over Equity) at 3.4%, following the planning we made by	19%	26%				14%	13%
occasion of our follow-on offer, always loyal to the mindset that	10%	7%		7%
			-3%
maintaining a coherent and conservative capital structure is a
preponderant factor for the sustainability of our business.
The chart on the side shows the evolution of our Adjusted Net
Debt4 and Leverage Ratio.	339	410
Although we had a fantastic 2023, taking the Direcional Group to		138	102		97	196	194
another level, we believe that achievement alone is not always
						-72
enough. We need to be forward-thinking, always seeking to be a	2016 2017 2018	2019	2020 2021	2022 2023
few steps ahead. In the market where we operate, with all its		Adjusted Net Debt⁴		Adjusted Net Debt⁴/Equity

complexities and its long-cycle nature, laying the foundations is

crucial to take the best opportunities that will be ahead. In our way, with humbleness and a lot of dedication, we have sought to do this, and we understand that we are entering 2024 ready to fulfill our plans and make even greater achievements.

To all those who genuinely follow this path with us, transforming less into more, simple solutions into great results and, above all, teamwork into historic achievements, we would like to express our deepest gratitude.

Thank you,

The Management - Direcional Engenharia S/A

1 - Adjustment including Revenue from non-consolidated SPVs

2 - Adjustment excluding interest capitalized in COGS and the effect of Pode Entrar Program.

3 - Adjustment excluding non-recurring expenses with sales of receivables and equity swap result.

4 - Net Debt variation adjusted by payment of dividends, share buyback and variation in the balance of interest swap operation agreements.

5

EARNINGS RELEASE

4Q23

MAIN INDICATORS

	4Q23	3Q23	4Q22	Δ %	Δ %	2023	2022	Δ %
	(a)	(b)	(c)	(a/b)	(a/c)	(d)	(e)	(d/e)
Financial Numbers
Net Revenue (BRL million)	634.8	557.7	534.0	13.8%	18.9%	2,355.2	2,162.6	8.9%
Adjusted Gross Profit1 (BRL million)	226.5	206.2	193.6	9.9%	17.0%	856.2	770.1	11.2%
Adjusted Gross Margin1	35.7%	37.0%	36.3%	-1.3 p.p.	-0.6 p.p.	36.4%	35.6%	0.7 p.p.
Adjusted Gross Margin1 - Ex-Pode Entrar	37.1%	37.0%	36.3%	0.1 p.p.	0.8 p.p.	36.7%	35.6%	1.1 p.p.
Adjusted Net Income2 (BRL million)	97.7	82.7	52.6	18.2%	85.6%	324.4	187.9	72.6%
Adjusted Net Margin2	15.4%	14.8%	9.9%	0.6 p.p.	5.5 p.p.	13.8%	8.7%	5.1 p.p.
Launches

PSV Launched - 100% (BRL million)	1,390.2	1,399.4	1,057.7	-0.7%	31.4%	4,857.5	3,636.2	33.6%
Direcional	703.0	813.5	709.8	-13.6%	-1.0%	2,874.1	2,235.6	28.6%
Riva	481.3	585.9	347.9	-17.9%	38.4%	1,777.4	1,400.6	26.9%
Pode Entrar	206.0	-	-	n/a	n/a	206.0	-	n/a
PSV Launched - % Company (BRL million)	1,336.6	1,259.3	896.1	6.1%	49.2%	4,295.3	3,123.7	37.5%
Direcional	649.3	725.3	651.3	-10.5%	-0.3%	2,562.3	2,029.7	26.2%
Riva	481.3	534.1	244.8	-9.9%	96.6%	1,527.0	1,094.0	39.6%
Pode Entrar	206.0	-	-	n/a	n/a	206.0	-	n/a
Launched Units	4,998	4,152	4,320	20.4%	15.7%	17,180	14,525	18.3%
Direcional	2,936	3,106	3,504	-5.5%	-16.2%	12,025	10,787	11.5%
Riva	1,072	1,046	816	2.5%	31.4%	4,165	3,738	11.4%
Pode Entrar	990	-	-	n/a	n/a	990	-	n/a
Net Sales
Net Sales - PSV 100% (BRL million)	1,220.6	1,004.6	694.4	21.5%	75.8%	3,991.1	2,998.9	33.1%
Direcional	658.9	560.7	489.3	17.5%	34.7%	2,371.7	2,057.8	15.3%
Riva	353.1	441.2	206.7	-20.0%	70.8%	1,408.6	939.6	49.9%
Old Harvest	2.6	2.7	-1.6	-1.9%	n/a	4.9	1.5	232.5%
Pode Entrar	206.0	-	-	n/a	n/a	206.0	-	n/a
Net Sales - PSV % Company (BRL million)	994.4	751.4	551.5	32.3%	80.3%	3,122.6	2,416.0	29.2%
Direcional	513.7	427.2	397.6	20.3%	29.2%	1,871.8	1,713.2	9.3%
Riva	272.8	322.3	153.9	-15.4%	77.2%	1,040.9	701.4	48.4%
Old Harvest	2.0	2.0	0.0	-0.2%	n/a	3.9	1.4	175.7%
Pode Entrar	206.0	-	-	n/a	n/a	206.0	-	n/a
Contracted Units	4,506	3,458	2,899	30.3%	55.4%	14,785	13,167	12.3%
Direcional	2,657	2,344	2,315	13.4%	14.8%	9,991	10,377	-3.7%
Riva	848	1,109	586	-23.5%	44.7%	3,789	2,786	36.0%
Old Harvest	11	5	-2	120.0%	n/a	15	4	275.0%
Pode Entrar	990	-	-	n/a	n/a	990	-	n/a

Net Sales Speed (VSO) in PSV

19.0%

16.8%

14.6%

2.2 p.p.

4.4 p.p.

44.0%

43.5%

0.5 p.p.

Direcional	17.2%	15.4%	16.7%	1.8 p.p.	0.6 p.p.	43.7%	47.3%	-3.6 p.p.
Riva	15.0%	19.1%	11.6%	-4.1 p.p.	3.4 p.p.	41.4%	38.6%	2.8 p.p.
Old Harvest	7.1%	6.7%	-4.3%	0.4 p.p.	11.4 p.p.	18.5%	1.3%	17.1 p.p.
Consolidated VSO without Pode Entrar	16.4%	16.8%	14.6%	-0.4 p.p.	1.7 p.p.	42.7%	43.5%	-0.8 p.p.

Other Indicators	4Q23
Adjusted Annualized ROE2	20%
Adjusted Net Debt3 (BRL million)	-72.1
Cash Generation4 (BRL million)	-15.5
Adjusted Net Debt3 / Equity	-3.4%
Inventory - 100 % (PSV - BRL million)	5,146.3
Landbank - 100 % (PSV - BRL million)	36,271.5

3Q23

20% -88.8-51.1-4.2% 5,021.4 35,769.6

2Q23

21%

268.2

21.7

16.7%

4,582.8

35,133.5

1Q23	4Q22
21%	17%

1. 193.4

1. 98.2

19.2% 13.3%

4,042.6 4,203.2

32,505.3 32,458.5

3Q22

13%

291.6 -5.6 19.1% 3,693.2 28,896.9

2Q22	1Q22
11%	11%

216.0 230.3

19.9 -34.4

14.1% 15.4%

3,266.0 3,310.4

28,204.0 27,797.9

1 - Adjustment excluding interest capitalized in COGS.

2 - Adjustment excluding non-recurring expenses with sales of receivables and equity swap result.

3 - Adjustment: balance of open positions in swap agreements.

4 - Cash Generation: net debt variation adjusted by payment of dividends, share buyback and variation in the balance of interest swap operation agreements.

6

EARNINGS RELEASE

4Q23

LAUNCHES

Direcional Group launched 15 new projects in 4Q23, representing a PSV of BRL 1.4 billion (BRL 1.3 billion % Company), a 31% growth versus the same quarter of 2022.

Considering the year of 2023, BRL 4.9 billion (BRL 4.3 billion % Company) were launched, the highest level ever launched in one year by the Company. As a result, there was a 34% growth observed in relation to the volume launched in 2022, reaffirming the clear evolution made by the Group year after year.

It is worth noting that, according to the Notice to the Market published on December 27, 2023, Direcional signed a contract with Companhia Metropolitana de Habitação de São Paulo for the sale of 990 residential units under the Pode Entrar program. Thus, considering the total PSV launched in the period, BRL 206 million (BRL 206 million % Company) refers to the global value contracted under the program.

As had already happened in the last quarter, it is important to highlight the increase in Direcional Group´s stake in launches, reaching 96% of the total launched in the quarter (compared to 85% in 4Q22) and 88% when analyzing the annual volume (compared to 86 % in 2022), confirming the trend of higher representativeness of projects with increasing participation from Direcional.

			Launches				Launches Track Record
		(PSV 100% - BRL million)			(PSV 100% - BRL million)
	Pode Entrar			+34%
				4,857			4,857
	Riva
					206
	Direcional
					3,636			CAGR:	3,636
					1,777		+29%
								3,138
					1,401
		+31%						1,681 1,946 1,763
		1,399	1,390	-1%		2,874
1,058	586	206	2,236	832	925
348	481
710	814	703

4Q22 3Q23 4Q23

Launches

PSV Launched - 100% (BRL million)

Direcional

Riva

Pode Entrar

PSV Launched - % Company (BRL million)

Direcional

Riva

Pode Entrar

Launched Units

Direcional

Riva

Pode Entrar

Average % Company

2022	2023		2016	2017	2018	2019	2020	2021	2022	2023
4Q23	3Q23	4Q22	Δ %	Δ %		2023		2022		Δ %
(a)	(b)	(c)	(a/b)	(a/c)		(d)		(e)		(d/e)
1,390.2	1,399.4	1,057.7		-0.7%	31.4%	4,857.5	3,636.2	33.6%
703.0	813.5	709.8	-13.6%	-1.0%	2,874.1	2,235.6	28.6%
481.3	585.9	347.9	-17.9%	38.4%	1,777.4	1,400.6	26.9%
206.0	-	-		n/a		n/a	206.0		-	n/a
1,336.6	1,259.3	896.1		6.1%	49.2%	4,295.3	3,123.7	37.5%
649.3	725.3	651.3	-10.5%	-0.3%	2,562.3	2,029.7	26.2%
481.3	534.1	244.8		-9.9%	96.6%	1,527.0	1,094.0	39.6%
206.0	-	-		n/a		n/a	206.0		-	n/a

4,998	4,152	4,320	20.4%	15.7%	17,180	14,525	18.3%
2,936	3,106	3,504	-5.5%	-16.2%	12,025	10,787	11.5%
1,072	1,046	816	2.5%	31.4%	4,165	3,738	11.4%
990	-	-	n/a	n/a	990	-	n/a
96.1%	90.0%	84.7%	6 p.p.	11 p.p.	88.4%	85.9%	3 p.p.

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EARNINGS RELEASE

4Q23

CONTRACTED SALES

In 4Q23, the gross contracted PSV reached BRL 1.3 billion (BRL 1.1 billion % Company). Thus, Net Sales reached BRL 1.2 billion (BRL 994 million % Company), setting a new record quarter in the metric. When compared to 4Q22, the growth rate was 76%, and when compared to 3Q23, the contracted net PSV was 22% higher.

In 2023, Net Sales reached 4.0 billion (BRL 3.1 billion % Company), a 33% growth versus 2022. It is worth highlighting the growth observed in all segments, with Riva brand products growing 50% in the period, while Direcional segment sales grew 25%, considering the two projects sold under the Pode Entrar program, which contributed with a PSV of BRL 206 million (BRL 206 million % Company).

It is also worth noting that part of the quarter´s sales was originated from products developed in SPVs that are not consolidated in the Company´s balance sheet (jointly controlled and non-controlled ventures). In this sense, 80% of the net PSV contracted in the quarter refers to projects whose revenue is consolidated in our results, while 20% of net PSV must contribute to the result via equity income.

		Net Sales						Net Sales Track Record
	(PSV 100% - BRL million)					(PSV 100% - BRL million)
					+33%
Pode Entrar					3,991								3,991
					206
Old Harvest					5
Riva
Direcional				2,999	1,409				CAGR:		2,999
					1
											+35%
					940								2,440
	+76%											1,680
		1,221							1,226	1,320
	1,005			2,372
	3	206	+22%	2,058
	3
						731
694	441	353
207							494
489	561	659
-2								2016	2017	2018	2019	2020	2021	2022	2023
4Q22	3Q23	4Q23		2022	2023

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EARNINGS RELEASE

4Q23

Table below presents information about Net Sales in 4Q23 and in 2023:

Net Sales

Net Sales - PSV 100% (BRL million)

Direcional

Riva

Old Harvest1

Pode Entrar

Net Sales - PSV % Company (BRL million)

Direcional

Riva

Old Harvest

Pode Entrar

Contracted Units

Direcional

Riva

Old Harvest

Pode Entrar

Net Sales Speed (VSO) in PSV

Direcional Riva

Old Harvest

Consolidated VSO without Pode Entrar

4Q23	3Q23	4Q22	Δ %	Δ %	2023	2022	Δ %
(a)	(b)	(c)	(a/b)	(a/c)	(d)	(e)	(d/e)

1,220.6	1,004.6	694.4	21.5%	75.8%	3,991.1	2,998.9	33.1%
658.9	560.7	489.3	17.5%	34.7%	2,371.7	2,057.8	15.3%
353.1	441.2	206.7	-20.0%	70.8%	1,408.6	939.6	49.9%
2.6	2.7	-1.6	-1.9%	n/a	4.9	1.5	232.5%
206.0	-	-	n/a	n/a	206.0	-	n/a
994.4	751.4	551.5	32.3%	80.3%	3,122.6	2,416.0	29.2%
513.7	427.2	397.6	20.3%	29.2%	1,871.8	1,713.2	9.3%
272.8	322.3	153.9	-15.4%	77.2%	1,040.9	701.4	48.4%
2.0	2.0	0.0	-0.2%	n/a	3.9	1.4	175.7%
206.0	-	-	n/a	n/a	206.0	-	n/a
4,506	3,458	2,899	30.3%	55.4%	14,785	13,167	12.3%
2,657	2,344	2,315	13.4%	14.8%	9,991	10,377	-3.7%
848	1,109	586	-23.5%	44.7%	3,789	2,786	36.0%
11	5	-2	120.0%	n/a	15	4	275.0%
990	-	-	n/a	n/a	990	-	n/a
19.0%	16.8%	14.6%	2.2 p.p.	4.4 p.p.	44.0%	43.5%	0.5 p.p.
17.2%	15.4%	16.7%	1.8 p.p.	0.6 p.p.	43.7%	47.3%	-3.6 p.p.
15.0%	19.1%	11.6%	-4.1 p.p.	3.4 p.p.	41.4%	38.6%	2.8 p.p.
7.1%	6.7%	-4.3%	0.4 p.p.	11.4 p.p.	18.5%	1.3%	17.1 p.p.
16.4%	16.8%	14.6%	-0.4 p.p.	1.7 p.p.	42.7%	43.5%	-0.8 p.p.

1 - Old Harvest: Comprises projects of the middle income, upper-middle income and commercial segments, developed in the former model.

NET SALES SPEED (VSO)

In 4Q23, Net Sales Speed, measured by the VSO index (sales-over-supply ratio), came in at 19% in the consolidated view, with a 17% index in Direcional's projects (excluding Old Harvest segment) and a 15% index in Riva's projects. Excluding the Net Sales related to the Pode Entrar program, the consolidated VSO was 16% in the quarter.

Net Sales and VSO

(PSV 100% - BRL million)

	18.8%	19.1%	19.0%
	18.2%
16.7%	16.7%	16.8%	17.2%
	17.5%17.3%	16.4%
14.6%	13.3%	15.4%	15.0%
11.6%			Pode Entrar Sales

				1,221
		962	1,005	3	206
	803	0	3
694	380	441	353
234
207
489	570	582	561	659
-2	-1
4Q22	1Q23	2Q23	3Q23	4Q23

Old Harvest Sales Riva Sales Direcional Sales Direcional VSO Riva VSO Consolidated VSO

Consolidated VSO without Pode Entrar

9

EARNINGS RELEASE

4Q23

Canceled Sales

The PSV of Canceled Sales totaled BRL 99 million (BRL 80 million % Company) in 4Q23. In view of this, the percentage of Canceled Sales over gross sales was 8.9% in the quarter, representing an increase of 1.0

1. in comparison with 3Q23 and a reduction of 2.9 p.p. over 4Q22, remaining at quite low levels.

In 2023, Canceled Sales summed up BRL 372 million (BRL 302 million % Company), in line with the previous year. In that sense, even though the financial amount is almost the same, there was a significant reduction of 2.0 p.p. in its representativeness over gross sales in the period, decreasing from 10.9% to 8.9%.

The table below shows more information regarding 4Q23 and 2023:

Canceled Sales

(PSV 100% - BRL million and %)

11.8%

7.8%

8.9%

10.9%

8.9%

+1%

		+7%				368	372
92	99	+16%
85
4Q22	3Q23	4Q23	2022	2023
	Canceled Sales			% Canceled Sales (PSV)

Canceled Sales1

Canceled Sales (100 % - BRL million) Gross PSV Contracted (100%)

% Canceled Sales / Gross PSV Contracted

Canceled Sales (% Company - BRL million) Gross PSV Contracted (% Company)

% Canceled Sales / Gross PSV Contracted

4Q23

(a)

-98.81,113.5 8.9%

-80.1868.6 9.2%

3Q23

(b)

-85.31,089.9 7.8%

-67.0818.4 8.2%

4Q22

(c)

-92.5786.8 11.8%

-75.4626.9 12.0%

Δ %	Δ %	2023	2022	Δ %
(a/b)	(a/c)	(d)	(e)	(d/e)

15.7%	6.8%	-371.7	-367.8	1.1%
2.2%	41.5%	4,156.8	3,366.6	23.5%
1.0 p.p.	-2.9 p.p.	8.9%	10.9%	-2.0 p.p.
19.6%	6.3%	-302.3	-301.5	0.3%
6.1%	38.6%	3,218.9	2,717.5	18.5%
1.0 p.p.	-2.8 p.p.	9.4%	11.1%	-1.7 p.p.

1 - In canceled PSV, transfers of credit from customers of the unit originally acquired to another unit of our inventory are disregarded.

INVENTORY

Direcional Group ended 2023 with 17,734 units in Inventory, corresponding to a PSV of BRL 5.1 billion (BRL 4.3 billion % Company).

Table below shows the Inventory at market value, detailed by stage of construction and by the type of product. It is worth mentioning that less than 2% of the total PSV refers to completed units, with less than 1% related to Direcional projects (ex-OldHarvest products).

Total PSV

% Company PSV

[

Breakdown of Inventory at Market Value

In progress (BRL million)

Direcional

3,170

Riva

1,903

Old

Harvest

0

Total

5,073

Direcional

2,693

Riva

1,588

Old Harvest

0

Total

4,281

% Total

Completed (BRL million)

62%

38

37%

2

0%

34

99%

74

62%

36

37%

2

0%

20

99%

58

% Total	1%	0%	1%	1%	1%	0%	0%	1%
Total (BRL million)	3,207	1,905	34	5,146				2,730	1,590	20	4,339
% Total	62%	37%	1%	100%				63%	37%	0%	100%
Total Units	13,127	4,507	100	17,734		13,127	4,507	100	17,734

% Total Units

74%

25%

1%

100%

74%

25%

1%

100%

10