EZTEC Empreendimentos e Participações S A : Earnings Release 2Q22

Earnings Release

2Q22

Conference Call in Portuguese					Conference Call in English
August 12th, 2022			August 12th, 2022
10h (Brasília time) / 09h (US EST)			12h (Brasília time) / 11h (US EST)
	Zoom:				Zoom:
	Click hereor access via QR Code				Click hereor access via QR Code
	849 5349 8669						897 1507 2699

Contact IR			· Ronan Aley
· A. Emílio C. Fugazza	Tel.: [phone]
· Pedro Tadeu T. Lourenço	· Vitor Hashimoto	[e-mail]
· Giovanna Bittencourt		ri.eztec.com.br/en/

EARNINGS RELEASE	2Q22
SUMMARY
2Q22 HIGHLIGHTS...........................................................................................................................................................	3
MANAGEMENT'S COMMENTS........................................................................................................................................	4
INCOME STATEMENT......................................................................................................................................................	6
BALANCE SHEET ..............................................................................................................................................................	7
FINANCIAL INDICATORS..................................................................................................................................................	8
REVENUE, COST & GROSS PROFIT ..................................................................................................................................	8
SELLING EXPENSES ........................................................................................................................................................	10
ADMINISTRATIVE EXPENSES .........................................................................................................................................	11
EQUITY INCOME............................................................................................................................................................	12
RESULTS TO BE RECOGNIZED........................................................................................................................................	13
FINANCIAL RESULTS ......................................................................................................................................................	14
CASH AND DEBTS ..........................................................................................................................................................	15
OPERATIONAL INDICATORS ..........................................................................................................................................	16
LAUNCHES.....................................................................................................................................................................	16
OPERATIONS INFORMATIONS ......................................................................................................................................	17
DELIVERIES SCHEDULE ..................................................................................................................................................	18
SALES AND CANCELLATIONS.........................................................................................................................................	19
INVENTORY ...................................................................................................................................................................	21
LANDBANK ....................................................................................................................................................................	22
CAPITAL MARKETS ........................................................................................................................................................	23
NET ASSET VALUE .........................................................................................................................................................	24
ANNEXES .......................................................................................................................................................................	26
CASH FLOW...................................................................................................................................................................	26
POC EVOLUTION ...........................................................................................................................................................	27
INVENTORY BY PROJECT ...............................................................................................................................................	28
REVENUE BY PROJECT...................................................................................................................................................	29
RESULTS FOR SHARED CONTROL PROJECTS .................................................................................................................	30
EZ INC.............................................................................................................................................................................	31
FIT CASA ........................................................................................................................................................................	33

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EARNINGSI RELEASE 2Q22

2Q22 HIGHLIGHTS

Haute Brooklin

Hub Brooklin

Click the picturesto access the Launches Communication or scan the QR code above

Launch Date: 06.24.2022 (19.2% Sold*)Launch Date: 06.24.2022 (19.8% Sold*)

*Sales until 11/08/2022

Half-year net revenue increases 9.5% year-over-year.

With new projects, sales of Launches inventory in 1H22 exceed 1H21 by 65%.

Financial Highlights

2Q22

1Q22

%Var

2Q21

%Var

1H22

1H21

%Var

	Net Revenue (R$ k)	242,557	287,160	-15.5%		288,747	-16.0%		529,717		483,716	9.5%
	Gross Profit (R$ k)		84,099		112,863		-25.5%			131,547		-36.1%		196,962			214,339		-8.1%
	Gross Margin	34.7%	39.3%		-4.6 p.p	45.6%		-10.9 p.p	37.2%		44.3%		-7.1 p.p
	Net Income (R$ k)		83,121		104,649		-20.6%			139,490		-40.4%		187,770			212,400		-11.6%
	Net Margin	34.3%	36.4%		-2.2 p.p	48.3%		-14 p.p	35.4%		43.9%		-8.5 p.p
	Earnings per Share (R$)		0.38		0.47		-20.0%			0.61		-38.6%		0.85			0.94		-9.3%
	Net Debt (Cash) (R$ k)	(608,918)	(792,755)	-23.2%		-1,049,391	-42.00%		(608,918)		(1,049,391)	-42.0%
	Cash Generation (Burn) (R$ k)				143.3%					(259,413)
		(183,837)		(75,576)				(10,955)		1,578.1%				(22,755)		1,040.0%

Operational Highlights

1Q22

1Q22

%Var

2Q21

%Var

1H22

1H21

%Var

	# of Projects Launched	2	3	-33.3%	2	0.0%	5	3	66.7%
	PSV %EZTEC		414,400		489,400		-15.3%		927,800		-55.3%		903,800			955,900		-5.5%
	Net Sales	231,304	303,537	-23.8%	285,512	-19.0%	534,841	520,849	2.7%
	Total Inventory		2,738		2,432		12.6%		2,379		15.1%		2,738			2,379		15.1%
	SoS	7.8%	11.1%	-29.8%	15.9%	-51.0%	16.3%		23.3%	-29.7%
	# of Active Construction Sites		20		20		0.0%		25		-20.0%		20			25		-20.0%
	Landbank	11,080	10,994	0.8%	11,504	-3.7%	11,080	11,504	-3.7%

São Paulo, August 11 2022 - EZTEC S.A. (BOVESPA: EZTC3) celebrates its 43rd anniversary as one of the most profitable builders and developers in Brazil. The Company announces its results for the second quarter of 2022. Except where stated otherwise, EZTEC's operating and financial information is presented on a consolidated basis and in Brazilian real (R$), in accordance with Generally Accepted Accounting Principles in Brazil ("BR GAAP") and the International Financial Reporting Standards (IFRS) applicable to real estate developers in Brazil, as approved by the Accounting Pronouncement Committee (CPC), Securities and Exchange Commission of Brazil (CVM) and Federal Accounting Board (CFC).

Dear investor, we have prepared a new material to make your journey easier when appreciating EZTEC's financial figures and operational data. We sought to synthesize the information so that you would have more clarity about what were the relevant events that occurred in the quarter, their impact on the Company's results and operations. We have also revised the language to make it more accessible, friendly, engaging and easy to understand. Don't worry, because despite the synthesis of the information presented, we have maintained the transparency you are used to. The complete data and historical evolution can be found in our Annexesor on our Investor Relations website. You can also navigate through the document using the QR Codes and Hyperlinks inserted in the Excel symbols and in parts of the text.

Best regards and happy reading,

INVESTOR RELATIONS Team

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EARNINGS RELEASE	2Q22

MANAGEMENT'S2Q22 COMMENTS

EZTEC's Management announces the results for the second quarter of 2022 (2Q22), which closed with gross margins of 34.7%, net margins of 34.3% and a result of R$ 83 MM. The highlight of the semester are the gross sales that in the year- over-yearcomparison exceeded 1H21 by 6.0% even under the challenging scenario that has persisted throughout the first half of this year, where higher interest rates and persistent inflation were observed.

On the financial side, the effects of inflation in recent months on the Company's gross margin are perceptible. Its influence is the main reason for the reduction of 4.6 p.p. observed in the gross margin this quarter. Throughout this period the National Index of Construction Costs (INCC) accumulated a high of 5.46%, largely supported by the agreements reached with the unions in May and by the increases in supplies, which tend to be less expressive.

We point out that this reduction should be one-off and limited to this quarter since the majority of the receivables contracts signed with the clients have the INCC as their correction index and there is a lag of approximately 2 months for this increase to be passed on to the clients' outstanding installments. With this, it is expected a margin recomposition in the same proportion in the quarters ahead, causing the fluctuation to have little impact on the annual margin.This effect could be experienced in 4Q20, where there was a 3.6 p.p. reduction in the gross margin due to the more vigorous inflation experienced at that time and, subsequently, we had a recomposition of 4.9 p.p. in 3Q21, when inflation cooled down.

In 2Q22 we launched the projects Haute Brooklin by EZ (R$232.2 MM) and Hub Brooklin by EZ (R$ 182.2 MM), both in Brooklin, under the same SPE. We also delivered the project Artis Jardim Prudência, launched in 2Q19 and currently 82.6% sold. The Company maintained the launching level presented in the previous quarter (R$ 489 MM in 1Q22 and R$ 414

1. in 2Q22). We have maintained special care in selecting the most appropriate projects for launching, aiming for those that result in both: attractive sales velocity at launching, returns compatible with the Company's history and the maintenance of a sales rhythm that helps in the search for the reduction of current inventory.

In August, we reopened the sales stands of Unique Green in order to prepare for the launch of its second phase. It is worth remembering that its first phase, launched in 4Q21, had an expressive sales performance with approximately half of its units sold in the first three months. This new phase has 443 medium standard units and a total PSV of R$ 410.2 MM.

Focused on the reduction of inventory, especially that under construction, mostly concentrated in the South Zone of São Paulo, we resumed the strategy of large sales showrooms, inaugurating the first of them at Roque Petroni Jr Avenue and having another space under development at 23 de maio Avenue.This new space, opened in late June, has approximately 1,700m² of floor space, a sales center, movie theater, mock-ups and models of the Haute and Hub launchings, and of the Arkádio and Air Brooklin projects, launched in 3Q21 and 1Q20, respectively.

We also communicate that the Company, observing the trading prices of its stocks, acquired 2,863,400 shares since the beginning of the current Buyback Program, disbursing R$ 45 MM in these acquisitions, an average acquisition value of R$ 15.78 per share.So far, 30% of the total of 9,472,253 shares foreseen by the current buyback program have been acquired. Since the beginning of the buyback programs, in October 2021, the Company has already repurchased 8,874,297 shares disbursing approximately R$177 MM, an average amount of R$19.94 per share.

Added to this movement is the approval by the Company's Board of Directors of the payment of dividends on 2Q22 profit, following the movement started in 1Q22. The total amount will be R$19,741,378.18, approximately R$0.09 per share, to be paid until August 31, 2022,reaching the total of R$ 147 MM of dividends paid in the year.

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EARNINGS RELEASE	2Q22

Aware of the concerns surrounding the industry, we believe it is important to emphasize to our shareholders that the Company has approximately R$1.04 billion in receivables, a net cash position of R$609 MM, a direct receivables portfolio of R$378 MM, a delivery schedule until the end of the year of approximately R$769 MM of PSV, with 82% sold, and a landbank of approximately R$11 billion acquired without the need for swaps. These factors allow EZTEC to adopt more conservative strategies aligned with long-termreturn optimization premises, without the need to sacrifice them in light of the turbulence that has been present in recent months.

Finally, as you can see by reading this Earnings Release, we are developing new tools and revising the layouts of our materials in order to bring more transparency, accurate information, and the engagement of our readers regarding the Company's business and strategies. Therefore, be sure to check out the materials on the Investor Relations website (ri.eztec.com.br/en) and take part in our opinion poll.

Enjoy your reading,

THE MANAGEMENT

Arbitration Chambers: Pursuant to Article 41 from EZTEC's Bylaws, the Company, its shareholders, Management, and members of the Audit Committee are obliged to resolve each and every of dispute and controversy that may arise among them through arbitration towards The Chamber of Arbitration of the Market (Câmara de Arbitragem do Mercado), especially in regard to the application, the validity, the efficacy, interpretation, and violation of its effects, of the the Corporation Law (Lei das Sociedades por Ações), of the Company's Bylaws, of the norms edited by the National Monetary Council, by the Central Bank of Brazil or by CVM, as well as of the remaining norms applicable to the functioning of the capital market in general, and of the Novo Mercado Regulation, the Arbitration Regulation, the Sanction Regulation, and the Participation Contract in Novo Mercado.

Relationship to Independent Auditors: Pursuant to CVM Instructions CVM no 381/03, EZTEC informs that the independent auditors Ernst & Young Auditores Independentes S.S. did not provide, in 2021, other services than those related to external audit. The company's policy on contracting the services of independent auditors ensures that there is no conflict of interest, loss of independence or objectivity.

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