3Q21 OPERATING RESULTS

LAVVI LAUNCHES R$331 MILLION AND SELLS R$192 MILLION IN QUARTER

IN THE YEAR, LAUNCHES SURPASS R$1 BILLION AND SALES REACH R$785 MILLION, 965% HIGHER THAN 9M20

São Paulo, October 14, 2021 - Lavvi Empreendimentos Imobiliários S.A. (B3: LAVV3) announces its preliminary operating esults for the third quarter of 2020 (3Q21). The operating results presented here are subject to review by the auditor.

HIGHLIGHTS

  • Launches: R$331 million, represented by Wonder Ipiranga. In 9M20, 2 projects were launched with PSV of R$1.0 billion;
  • Net Sales: R$192 million in 3Q21, up 469% from 3Q20. In 9M21, net sales were R$785 million, up 965% on 9M20;
  • Inventory Turnover Ratio: 27% in 3Q21 and 44% for launches;
  • Inventory: R$504 million, of which only 1% correspond to finished inventory, even considering the two projects delivered in the period;
  • Landbank: R$4.2 billion at end-3Q21, considering the acquisition of one land plot in São Paulo city, aimed to the luxury segment (R$665 million in PSV).

LAUNCHES

During 3Q21, the Company launchedWonder Ipiranga, in the Ipiranga region of São Paulo city. The project has 576 units, which include residential units from 75 sqm to 127 sqm and studio units from 28 sqm to 36 sqm. Located 100 meters from the Sacomã metro station, the project offers complete leisure amenities and club infrastructure.

With gross PSV of R$331 million, or R$272 million net of swap, Wonder Ipiranga is the second launch of the year. Including the project, PSV launched in the YTD amounts to R$1 billion, or twice the volume launched in 2020. In the first month, 48% of units were sold.

Launch: August 2021

Units: 576

PSV: R$331 million

PSV, ex-swap:R$272 million

Location: Ipiranga, São Paulo

%Lavvi: 100%

% Sales (PSV): 44%

% Sales (units): 48%

3Q21 OPERATING RESULTS

SALES & CANCELLATIONS

Net sales in 3Q21 amounted to R$192 million, increasing 469% from 3Q20 and decreasing 62% from 2Q21, period when Villa was launched. In the year to date, net sales were R$785 million, surpassing by 965% the net sales in 9M20.

Sales performance in the quarter was mainly driven by i) the excellent initial results of the launch of Wonder Ipiranga, with 48% of units sold in the first month; ii) the continued good sales and weight of the Villa project; and iii) the contribution from the product One Park. The huge growth when comparing to 2020 reiterates the Company's fast operating acceleration.

Supported by the launch of Wonder Ipiranga, the inventory turnover ratio (VSO) ended 3Q21 at 27%, with launches registering a VSO of 44%. VSO in the last 12 months was 69%, and of 61% in 9M21.

Net Sales 100%

(R$ Million)

61%

57%

59%

36%

36%

27%

20%

785

354

507

192

34

86

74

3Q20

4Q20

1Q21

2Q21

3Q21

9M20

9M21

VSO

Excluding swap agreements and commissions, Lavvi's net sales came to R$120 million in 3Q21, representing an increase of 545% from 3Q20 and a decrease of 70% from 2Q21. In the year to date, net sales on the same basis came to R$581 million, compared to R$43 million in 9M20, an increase of 1,262%.

Net Sales %Lavvi

(R$ Million)

785

205

507

354

108

132

192

74

581

86

400

72

31

34

222

25

120

15

61

43

19

3Q20

4Q20

1Q21

2Q21

3Q21

9M20

9M21

Net Sales %Lavvi

%Partners + Swaps + Commission

Gross sales came to R$208 million in 3Q21, advancing 366% from 3Q20 and decreasing 60% from 2Q21. In 9M21, gross sales were

R$813 million, increasing 657% from 9M20.

Cancellations decreased 17% on the prior-yearperiod, corresponding to only 3% of gross sales. In 3Q21, contracts were cancelled for only 11 units, totaling R$16 million, with 6 units already sold during the quarter,

3Q21 OPERATING RESULTS

Sales (R$ 000)

3Q21

2Q21

Q/Q

3Q20

Y/Y

9M21

9M20

Y/Y

Gross Sales 100%

207,608

514,688

(59.7%)

44,526

366.3%

813,349

107,437

657.0%

Cancellations 100%

15,727

7,232

117.5%

10,774

46.0%

27,905

33,681

(17.1%)

Net Sales 100%

191,881

507,456

(62.2%)

33,752

468.5%

785,444

73,757

964.9%

Net Sales %Lavvi

119,709

399,872

(70.1%)

18,521

546.3%

580,852

42,630

1262.6%

Cancellations /

Gross Sales

8%

1%

6.2 p.p.

24%

-16.6 p.p.

3%

31%

-27.9 p.p.

Gross Sales 100%

(R$ Million)

813

Finished: 3%

28

28

Launches 2018-19: 3%

119

Launches 2020: 15%

638

405

90

180

107

Launches 2021: 78%

9M17

9M18

9M19

9M20

9M21

INVENTORY

At end-3Q21, the market value of our inventory stood at R$504 million, corresponding to 536 units. Of the total inventory, i) 78% corresponds to the products launched in 2021, Villa and Wonder Ipiranga, ii) 21% corresponds to products under construction, and iii) only 1% corresponds to finished units. It is important to note that, excluding the products launched since 2020, Lavvi's

projects already have sold 99% of their units.

Project

Status

Launch

PSV¹

PSV Lavvi¹

Units

Inventory

% Sold

Praça Piratininga

Finished

mai-16

0

0

335

-

100.0%

Praça Mooca

Finished

jun-17

3,918

1,997

377

8

97.9%

Movva

Finished

set-17

210

210

258

1

99.6%

Palazzo Vila Mariana

Under Construction

mai-18

-

-

95

-

100.0%

Vitrali Moema

Under Construction

out-18

450

315

262

1

99.6%

Nativ Tatuapé

Under Construction

mai-19

-

-

301

-

100.0%

Moema by Cyrela

Under Construction

jun-19

6,907

2,763

53

6

88.7%

One Park Perdizes

Under Construction

out-19

30,102

24,081

103

11

89.3%

Wonder by Praças da Cidade Under Construction

out-20

21,248

10,832

236

33

86.0%

Lumiere

Under Construction

nov-20

46,699

46,699

306

85

72.2%

Villa Versace

Stand

jun-21

218,379

218,379

409

95

76.8%

Wonder Ipiranga

Launch

ago-21

176,323

176,323

576

296

48.6%

Total

504,235

481,600

3,311

536

83.8%

¹ R$ Million

Launch: projects launched in the quarter;

Sales Offices: projects launched in prior periods, but for which construction has not yet started or will start in the quarter.

Under Construction: projects with construction in progress;

Finished: completed projects.

3Q21 OPERATING RESULTS

DELIVERIES

In 3Q21, the projects Palazzo Vila Mariana and Vitrali Moema were delivered, both with 100% of their units sold. In all, 372 units were delivered, corresponding to a PSV of R$259 million, with 98% of acceptance in the first inspection.

PALAZZO VILA MARIANA

LANDBANK

In 3Q21, the Company acquired one land plot in São Paulo city, with total PSV of R$665 million. It was acquired for the future launch of a project in the luxury segment, similar to Villa in terms of market niche. The acquisition cost corresponds to 27% of PSV. Settlement was 90% via cash and 10% via swap agreements.

At period end, the landbank represented PSV of R$4.2 billion. Settlement was 84% via cash and 16% via swap agreements, with Lavvi the majority partner in all projects, with an average ownership interest of 91%.

Landbank

(R$ Million)

R$ Milhões

Luxo

Alto

Médio-Alto

Médio

Total

Zona Norte

251

251

Zona Oeste

312

312

Centro

405

405

Zona Leste

943

943

Zona Sul

665

1.454

219

2.338

Total

665

1.454

531

1.599

4.249

Middle: projects with average price of up to R$9,000/m²;

Upper-Middle: projects with average price from R$9,001/m² to R$12,000/m²;

High: projects with average price from R$12,001/m² to R$20,000/m²;

Luxury: projects with average price of over R$20,000/m².

318

271

665

3,631

4,249

Landbank

Launches

New

Changes in

Landbank

2Q21

Acquisitions

Projects

3Q21

About Lavvi: Lavvi Empreendimentos Imobiliários S.A. ("Lavvi" or "Company") is a the middle, upper-middle and high income segments in the city of São Paulo. listing segment of the B3 under the ticker LAVV3.

developer and builder of residential projects for Lavvi's shares are traded on the Novo Mercado

Register for the Investor Relations team's mailing list to receive updates about Lavvi.

3Q21 OPERATING RESULTS

For more information, please contact:

Investor Relations

Tel: (11) 4210-1377 Ext.: 7051

Mobile: (11) 98358-4917

Twitter: @rilavviri@lavvi.com.br|ri.lavvi.com.br

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Lavvi Empreendimentos Imobiliarios Ltda. published this content on 14 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 October 2021 20:31:07 UTC.