Gafisa : 3Q20 Conference Call Presentation

Quarterly Results 3Q20

Disclaimer

This presentation contains forward-looking statements which are subject to risks and uncertainties.

These statements are based on expectations and assumptions of our Management and Directors, taking into account information to which the Company currently has access.

Exceptions related to forward-looking statements also include information about potential or expected

operating results, as well as statements preceded by, followed by or including the words "believes", "may", "will", "continues", "expects", "foresees", "intends", "plans", "estimates" and similar expressions. The forward-looking statements and information are not guarantee of performance. They involve risks, uncertainties and assumptions, as they refer to future events, therefore subject to circumstances which

may or may not occur. Future results and value creation for shareholders may significantly differ from those expressed or suggested by the forward-looking statements. Most of the factors that will determine these results and values are beyond our capacity or ability of control or foreseeability.

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HIGHLIGHTS 3Q20

• R$144 million in sales: 248% higher than in 2Q20 and best quarterly performance since 3Q18;
• 2 projects delivered (R$140 million PSV), totaling 7 deliveries in 2020 (R$750 million PSV);
• Growth upturn in real estate development core business: a reality reflected in the income statement
• • R$1.13 billion PSV in launches in 2020 (R$264 million in 3Q20 and R$875 million in 4Q20);
  • R$1.74 billion PSV in 15 short and medium-term projects;
  • Acquisition of two plots of land in Vila Mariana and Butantã with PSV of R$272 million.
  • Gafisa Rio: acquisition of 4 projects from Calçada S/A located in the South and West areas of Rio de Janeiro, with R$747 million PSV;
• Growth in new lines of business: Gafisa transformation into a real estate platform
• • Gafisa Properties: portfolio will be composed of Gafisa's current assets (30,000 sqm. ABL (gross leasable area) offices and stores) , and acquisition of assets at non-replicable locations and/or turnaround opportunities;
  • Innovation & Technology: positioning in the real estate ecosystem via investments and partnerships with startups

3

FINANCIAL HIGHLIGHTS 3Q20

• Solid balance sheet:
• • Low leverage ratio at 7.6% net debt/shareholders' equity;
  • R$630 million cash + R$ 933 million in receivables which broadly cover current total indebtedness of the Company, R$745 million;
• Funding: all construction works in progress and launches made with financing contracted;
• • Issue of R$190 million in CRI (real estate receivables certificates) of which R$120 million were raised for construction projects;
  • R$125 million contracted for future launches at Av. Delfim Moreira (RJ) and Bandeira Paulista (SP);
  • R$100 million to be contracted for other launches with projects' real estate security interest;
• Maintenance of backlog results margin at approximately 35%;
• R$40 million in non-recurring accounting adjustments of 3Q20 without cash impact, reflecting the discipline and the good management practices of current management in its effort to conclude the Company's legacy restructuring;

❑ Consistent reduction of recurring general and administrative expenses:15% in 3Q20 vs. 2Q20.	4

Operational

Results

Guilherme Benevides - COO

LAUNCHES IN 3Q and 4Q20: R$1.13 billion PSV

CHEZ		NORMANDIE
Building	Chez	High Line Jardins	Normandie Moema
PSV	R$ 44 million	R$ 77 million	R$ 143 million
Sold until Nov 15th	20%	45%	60%
Location	Perdizes	Jardins	Moema

Launched 3Q20

HIGH LINE JARDINS	PARQUE ECOVILLE
Passaúna	Cyano Rio	Campo Belo *	* UNDER FINAL PHASE
R$ 43 million	R$ 570 million	R$ 262 million	OF LICENSING
30%	Pre-sales
Curitiba	Rio de Janeiro	Campo Belo
Launched 4Q20	Pre-launch

6

OPERATIONAL RESULTS │ NET SALES

Gross Sales, Dissolutions (R$MM) and SoS

300
35,8%
250	24,1%	19,3%			22,1%
		18,2%	17,0%
		14,1%
	5,0%		6,4%		10,2%
4,3%	3,0%	3,2%	2,3%
200

150																						26
100	41	32
						13
									10					10	21	144
50	91
88
					73
									40					39	41
0
		1Q19			2Q19	3Q19			4Q19			1Q20				2Q20		3Q20
						Gross Sales			Dissolutions				Quartely Sos				12M Sos

Net Sales Breakdown 3Q20 (%)

40,0%

20,0%

0,0%

29,7%

-20,0%

-40,0%
-60,0%	70,3%

-80,0%

-100,0%

Under Construction

Delivered

7

OPERATIONAL RESULTS │ INVENTORY

Inventory by Year of Completion (R$MM)

Under
			Finished Inventory
construction

996

388

109

Inventory Segmentation by Region (R$MM)

Residential	Commercial
	996
	226
118	30
108
16

608

469

499

139

724	770

Total

2020

2021 +

São Paulo	Rio de Janeiro	Others		Total

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OPERATIONAL RESULTS│ DELIVERIES

Building	Moov Freguesia	Uplife Interlagos
Delivery	Aug/20	Aug/20
Units	307	114
PSV (R$ millions)	92	48
Location	São Paulo	São Paulo

Edifício: Moov Freguesia - São Paulo Edifício: Uplife Interlagos - São Paulo

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OPERATIONAL RESULTS │ SCHEDULE OF EXPECTED DELIVERIES

	2.500															4.500
						PSV (R$ MM)									4.219	4.000
	2.000					Units										3.500
																3.000
	1.500
																2.500
															2.286	2.000
	1.000
									1.594						1.500
	1.196					1.136
														1.000
	500
	749			653	661				500
							293
							223
	0																	0
				Entregues		4T20	2021	2022			Total

Delivered

4Q20

2021

2022 onwards

Total

• 2020: 10 expected deliveries with PSV R$ 971,8 million and 1.474 units;
• 7 already delivered;
• Occupancy permit obtained for 8th and 9th deliveries;
• 94% of total PSV with occupancy permit already obtained.

Buildings	7	3	6	8	24
PSV (R$ MM)	749	223	653	661	2.286
Units	1.196	293	1.594	1.136	4.219	10	10

GAFISA RIO DE JANEIRO - almost R$1 billion in differentiated projects

• In addition to the four projects highlighted below, Gafisa has 2 projects under advanced stage of works, with total PSV of R$123 million, acquired from Calçada.

Building	Delfim Moreira	Cyano	Sorocaba	Alphalake 11
PSV	R$ 197 million	R$ 570 million	R$ 54 million	R$ 145 million
Location	Leblon	Barra da Tijuca	Botafogo	Barra da Tijuca	11

SHORT AND MEDIUM-TERM LANDBANK

• In addition to the 5 projects launched until Nov/20 and the project to be launched in 4Q20 (with total PSV of R$ 1.134 billion), Gafisa has other 15 projects in its short and medium-term landbank, with an estimated PSV of R$1.7 billion:

APPROVED / TO BE APPROVED

RECENT ACQUISITIONS

Type

Luxury buildings

Luxury and middle income buildings

Entry level

TOTAL

* Real estate management

Location

Itaim

Moema

Pinheiros

Rio de Janeiro

Consolação

Centro

5 buildings

11 buildings

Estimated PSV

• R$ 90 million R$ 185 million
  R$ 80 million R$ 145 milhões R$ 120 million R$ 80 million R$ 520 million

R$ 1220 milhões

Type	Location		Estimated PSV
Luxury buildings	Delfim Moreira		R$ 197 million
Luxury and middle	Vila Mariana		R$ 116 million
income buildings	Butantã		R$ 156 million
Luxury buildings	Sorocaba*		R$ 54 million
TOTAL	4 buildings		R$ 523 million

* Calçada S/A

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12

Financial

Results

Ian Andrade - CFO and IRO

FINANCIAL RESULTS │ INCOME STATEMENT

Net Income (R$ MM)	Gross Profit (R$ MM)*	28,7%
	90
	80		Gross Profit	Gross Margin	22,2%

40,0%

30,0%

							70									20,0%
							60									10,0%
							50	27,1%							0,0%
	77%
					304		40					16,4%	82	-10,0%
			284		30									68
													-20,0%
	149					20									-30,0%
						23			24
84							10						-40,0%
							0													-50,0%
2Q20		3Q20	9M19	9M20				2Q20	3Q20		9M19				9M20
					Net Profit (R$ MM)**
										* Amount not adjusted to
																	exclude non-recurring
					(24)												accounting adjustments of
						(56)		(61)								PDD (allowance for doubtful
															accounts) in 3Q20 of
								(106)						approximately R$7MM
																** Amount not adjusted to
																exclude non-recurring
																accounting adjustments in
																3Q20 of approximately
																R$40MM									14

2Q20

3Q20

9M19

9M20

FINANCIAL RESULTS │ MARGIN EVOLUTION

	1Q20	2Q20	3Q20	9M20
Net Revenue	71.703	83.800	148.632	304.135
Gross Profit	20.462	22.714	24.412	67.588
Gross Margin	28,5%	27,1%	16,4%	22,2%
(-) Financial Cost	6.274	6.857	12.175	25.306
Adjusted Gross Profit	26.736	29.571	43.207	99.514
Adjusted Gross Margin ex-nonrecurring itens	37,3%	35,3%	29,1%	32,7%

	Gross Margin	Adjusted Gross Margin ex-nonrecurring itens
40,0%
35,0%	37,3%	35,3%
		32,7%
30,0%
28,5%		29,1%
	27,1%
25,0%
20,0%				22,2%
15,0%			16,4%
10,0%
5,0%
0,0%
	1Q20	2Q20	3Q20	9M20

Revenue and result to
be appropriated - REF
3Q20 (R$ MM)
Revenue	291
Result	100
Margin	34,4%

15

FINANCIAL RESULTS │ CONTINUOUS DECREASE IN G&A

Recurring G&A (R$ million)

-12,3%

16,2-15,0%

14,2

12,1

1Q20	2Q20	3Q20
		1Q20	2Q20	3Q20
G&A		16,5	15,1	19,5
Non recurrent G&A		0,3	0,9	7,5
Recurrent G&A		16,2	14,2	12,1

15% Reduction in Recurring G&A

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FINANCIAL RESULTS │ INDEBTEDNESS AND CASH

Evolution of Net Debt (R$ MM)

1000

Net Debt

900 54%Cash

Net Debt/Equity

800

700
								39%					630	40%
600				35%					570
500																				30%
422		414
394
400				316		347	363
																	20%
300
200															8,8%	115
																10%
												104
																7,6%
100
0																						0%
		3Q19			4Q19			1Q20			2Q20			3Q20

	1Q20	2Q20	3Q20
Total Debt Related to Projects	631	565	618
Total Debt Related to Working Capital	79	108	127
Total Debt	710	674	745

• Out of total debt, approximately 83% refers to projects finance.
• The Company's total indebtedness increased by R$71 million, from R$674 million to R$745 million, mainly reflecting UPCON consolidation.
• Capital increase of R$390 million was concluded, R$219 million to reinforce the Company's cash and the remaining amount to conclude Upcon acquisition.

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