Lavvi Empreendimentos Imobiliários S A : Operational Preview 4Q21

OPERATING RESULTS 4Q21

LAVVI LAUNCHES R$1.2 BILLION AND SELLS R$942 MILLION IN 2021

DURING 4Q21, LAUNCHES SURPASS R$211 MILLION AND SALES REACH R$155 MILLION

São Paulo, January 13, 2022 - Lavvi Empreendimentos Imobiliários S.A. (B3: LAVV3) announces its preliminary operating results for the fourth quarter of 2021 (4Q21). The operating results presented here are subject to audit.

HIGHLIGHTS

• Launches: R$211 million, represented by Grand Vitrali. In the year, launches totaled R$1.2 billion;
• Net sales: R$155 million in 4Q21. In 2021, net sales were R$942 million, up 120% from 2020;
• Inventory Turnover Ratio (VSO): 22% in 4Q21 and 49% for launches. In the year, VSO for launches was 63% and 66% for inventory.
• Inventory: R$567 million, of which only 0.3% corresponding to concluded inventory.
• Landbank: R$4.2 billion at the end of 2021.

LAUNCHES

In 4Q21, we launched Grand Vitrali in São Paulo. A total of 408 units were offered, including residential units (41 sqm to 61 sqm), as well as residential and non-residential studio apartments (25 sqm to 43 sqm). The project is located in the heart of the Moema district, three blocks from the subway station. In addition to the privileged location, Grand Vitrali offers its residents a coworking space, fitness center with Pilates, pool, solarium, wet deck and other amenities found in a comprehensive leisure area.

With this launch, PSV launched in 2021 totaled R$1.2 billion, 151% above 2020. The details and performance of the projects launched by Lavvi in 2021 are provided below.

Villa Versace

Wonder Ipiranga

Grand Vitrali

✓ PSV: R$705 million	✓ PSV: R$331 million	✓	PSV: R$211 million
✓ Segment: Luxury	✓ Segment: Mid income	✓	Segment: High income
✓ Launch: 2Q21	✓ Launch: 3Q21	✓	Launch: 4Q21
✓ Location: Moema	✓ Location: Ipiranga	✓	Location: Moema

OPERATING RESULTS 4Q21

SALES AND CANCELLATIONS

Net sales in 4Q21 amounted to R$155 million, decreasing 19% from 3Q21 and 56% from 4Q20, when the launches were higher than the currently quarter. In 2021, net sales amounted to R$942 million, up 120% from 2020.

		Launches					Net Sales
		(R$ Million)		1.247			(R$ Million)
											942
			549	498					498	428
	209	259						283
					143
110					73
2.016	2.017	2.018	2.019	2.020	2021	2.016	2.017	2.018	2.019	2.020	2021

The main driver of sales in the quarter was the launch of Grand Vitrali at the end of October. The project accounted for 67% of net sales in the period, ending the year with 46% of its units sold. Apart from this launch, we highlight the sales of Wonder Ipiranga, launched in August, with 51% of its units already sold.

Consolidated VSO (sales speed, in PSV) ended 4Q21 at 22%, with launches registering VSO of 49%, expanding 2 p.p. in relation to 2020. With regard to annual VSO, it is worth analyzing the sales speed of separately: VSO was 63% for launches and 66% for inventory.

VSO in 2021 was 63%, launches and inventory

			Net Sales 100%
			(R$ Million)		63%
57%		59%			61%
	36%
			27%	22%
					942
354		509			428
		192	155
	86
4Q20	1Q21	2Q21	3Q21	4Q21	2020	2021
				VSO

Excluding swap agreements and commissions, %Lavvi net sales totaled R$110 million in 4Q21, down 8% from 3Q21 and 51% from 4Q20. In the year, net sales totaled R$691 million, compared to R$264 million in 2020, an increase of 161%.

OPERATING RESULTS 4Q21

			Net Sales %Lavvi
				(R$ Million)
							942
							251
		509				428
354		108
132	86			192	155	163	691
401
		72	46	264
	25
222
		119	110
61
4Q20	1Q21	2Q21	3Q21	4Q21	2020	2021
	Net Sales %Lavvi	%Partners + Swaps + Commission

In 4Q21, cancellations corresponded to 13% of gross sales, totaling to a PSV of R$23 million, or 17 units, of which 7 units were resold in the same quarter, and 2 refer to units change. In 2021, cancellations corresponded to 5% of gross sales, down 3.5 p.p. from 2020.

Sales (R$ 000)		4Q21	3Q21	Q/Q	4Q20	Y/Y	2021	2020	Y/Y
Gross Sales 100%		178,831	207,608	(13.9%)	360,773	(50.4%)	992,181	468,211	111.9%
Cancellations 100%	23,477	15,727	49.3%	6,887	240.9%	49,968	40,568	23.2%
Net Sales 100%		155,354	191,881	(19.0%)	353,886	(56.1%)	942,213	427,642	120.3%
Net Sales %Lavvi		109,591	119,479	(8.3%)	221,708	(50.6%)	690,934	264,338	161.4%
Cancellations /	Gross Sales	13%	8%	5.6 p.p.	2%	11.2 p.p.	5%	9%	-3.6 p.p.

		Gross Sales 100%
			(R$ Million)	992	Finished: 3%
				33
				Launches 2018-19: 3%
				33
				127	Launches 2020: 13%
				800
	309	507	468		Launches 2021: 81%
137
2017	2018	2019	2020	2021

INVENTORY

At the end of 2021, the market value of our inventory stood at R$567 million, corresponding to 672 units. Of the total inventory, in terms of PSV: i) 81% corresponds to products launched in 2021: Villa, Wonder Ipiranga and Grand Vitrali, ii) 18% corresponds to projects under construction, iii) and only 0.3% corresponds to finished units, despite two deliveries during the period. It is important to note that, excluding the products launched in 2021, Lavvi's projects have on average sold 94% of their units.

					OPERATING RESULTS 4Q21
Project	Status	Launch	PSV¹	PSV Lavvi¹	Units	Inventory	% Sold
Praça Piratininga	Finished	mai-16	0	0	335	-	100.0%
Praça Mooca	Finished	jun-17	490	250	377	1	99.7%
Movva	Finished	set-17			258	-	100.0%
Palazzo Vila Mariana	Under Construction	mai-18	-	-	95	-	100.0%
Vitrali Moema	Under Construction	out-18	1,033	723	262	3	98.9%
Nativ Tatuapé	Under Construction	mai-19	-	-	301	-	100.0%
Moema by Cyrela	Under Construction	jun-19	9,831	3,932	53	7	86.8%
One Park Perdizes	Under Construction	out-19	27,753	22,202	103	10	90.3%
Wonder by Praças da Cidade Under Construction	out-20	21,016	10,714	222	32	85.6%
Lumiere	Under Construction	nov-20	45,456	45,456	306	79	74.2%
Villa Versace	Stand	jun-21	214,476	214,476	409	94	77.0%
Wonder Ipiranga	Launch	ago-21	147,023	147,023	471	233	50.5%
Grand Vitrali	Stand	out-21	100,037	80,029	397	213	46.3%
Total			567,114	524,805	3,589	672	81.3%
¹ R$ Million

Launch: projects launched in the quarter;

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

Under Construction: projects with construction in progress;

Finished: completed projects.

DELIVERIES

No projects were delivered in 4Q21. The next Lavvi project to be delivered - Nativ Tatuapé - is scheduled for the first quarter of 2022. In 2021, the projects Palazzo Vila Mariana and Vitrali Moema were delivered, 100% and 99% sold, respectively. In the year, 372 units were delivered, with PSV of R$259 million and acceptance rate of 98% in the 1st inspection.

LANDBANK

In 4Q1, the Company did not acquire land. In this way, the only change corresponds to the launch of Grand Vitrali and its consequently write off from landbank. In 2021, three land plots were acquired in the city of São Paulo, amounting to PSV of R$1.6 billion. The average cost of these acquisitions was 21% of PSV, with 84% of payment made in cash.

At the end of 2021, the landbank represented PSV of R$4.1 billion. Payment was made 84% in cash and 16% through swap agreements, with Lavvi being the majority partner in all projects, with an average interest of 91%.

R$ Million	Luxury	High	Mid-High	Middle	Total
North Zone				251	251
West Zone			312		312
Center				405	405
East Zone				943	943
South Zone	665	1,348	219		2,232
Total	665	1,348	531	1,599	4,143

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.

	Landbank
	(R$ Million)
	208
4,351		4,143
Landbank 3Q21	Launches	Landbank 4Q21

About Lavvi: Lavvi Empreendimentos Imobiliários S.A. ("Lavvi" or "Company") is a developer and builder of residential projects for the middle, upper-middle and high income segments in the city of São Paulo. Lavvi's shares are traded on the Novo Mercado listing segment of B3 under the ticker LAVV3.

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