Presentation

HeritageSão Paulo - SP

Cyrela

➢ Overview;

➢ History;

➢ Strategic focus;

➢ Operational figures;

➢ Financial indicators;

➢ Portfolio.

AGENDA

2

Cyrela

➢ Overview;

➢ History;

➢ Strategic focus;

➢ Operational figures;

➢ Financial indicators;

➢ Portfolio.

AGENDA

3

CYRELA AT A GLANCE

➢ Leadership position in the industry

➢ 50 years of history

➢ ~ 3.100 employees (construction + administrative)

➢ More than 200,000 clients

➢ Receivables – R$ 4.2 billion (As of September, 2017)

48% 28%34%

Free-float FoundersTop

Shareholders

26.0%36.9%

4

São Paulo

Rio de Janeiro

11%

78%

5%

Middle West

6%South

• National Scale: AA-(bra)• Foreign Currency: BB• Outlook: Stable.

• National Scale: brAA-• Global Scale: BB• Outlook: Negative.

• National Scale: Aa3.br• Global Scale: Ba2• Outlook: Negative.

Solid group with extensive experience in the industry Shareholders’ structure

Geographical footprint (Launches) Rating

Cyrela

➢ Overview;

➢ History;

➢ Strategic focus;

➢ Operational figures;

➢ Financial indicators;

➢ Portfolio.

AGENDA

5

SOLID TRACK RECORD

➢Cyrela is foundedas a land brokerin São Paulo;

➢Expansion to Rio de Janeiro and other states;

➢Cyrela’s IPO;

➢Spin-off of Properties Division ( Cyrela Commercial Properties);

➢1st debenture offering (out of a serie of 6 debentures);

➢1st receivables back securities (CRI’s) offering (out of a serieof 2 CRI’s);

➢Launch of facebook sales channel;

➢6st debenture offering;

➢5th CRI’s emission.

60’s 80’s and 90’s ´00-’10 ´11-´16

➢Vertical integration;

➢Land broker

➢Developer

➢Cyrela becomes listed company.

Foundation Integration Expansion Consolidation

6

➢Dividend payout: approximately 25% of its

adjusted net income

➢ Internal committees in line with the

best corporate governance and risk

mitigation practices

➢Corporate governance practices, based on

principles that privilege transparency

➢Business management. Follow-up and

accountability models are based on strict ethical

principles

➢Board of directors made up of at least 5

members

➢At least 20% should be independent

members

➢ Ensure at least 25% of the total stock is available

for trading

➢Adopt public offer procedures that favor the

shareholding dispersion

➢Minimum standards for quarterly disclosure of

information

➢ Stock option program

➢Allow the company and its subsidiaries to

attract and retain Eligible Persons

Transparency

Independent and strong board of directors

1st

homebuilder listed on Novo

Mercado

Clear internal politics

Well defined key business

process

Align shareholder

interests

Oreganic

growth

Key internal

process control

Focus on key

segments

(income profile)

Solid financial

discipline

Focus on

profitability

over growth

CORPORATE GOVERNANCE & STRATEGY

1 Source: Cyrela

7

Strategy

Corporate Governance

CYRELA HIGHLIGHTS

Leadership position in the industry and key markets

Fully integrated real estate company

(from land acquisition to selling)

Exposure to all customer segments

Fully professionalized management team with deep

industry

Solid balance sheet (largest real estate company in Brazil

by market cap)

Expertise in designing innovative projects

Strong Brand: The most admired Real estate company

8

1

2

3

4

5

6

7

RECENTS AWARDS

Cyrela by Pininfarina was the winner of the 2016 iF DesignAward in the Architecture and Interiors category. With 60 years oftradition, this german award is one of the most respected in thesector.

The 2nd best developer and homebuilder - 2016.

Cyrela received the Top Employer Certification, given to the world’s best employers, in 2015.

Cyrela is in Valor Econômico newspaper’s Anuário Inovação BrasilRanking of Brazil’s 100 most innovative companies. It ranks 4th in the Engineering, infrastructure and Logistics category, standing out for the implementation of processes to shorten deadlines, cut down on waste and increase productivity at work.

9

Winner in the category of Brand Communication with the“Identidade Cyrela” [Cyrela Identity] case, about the brandingproject the Company launched in 2013

In 2017, Cyrela won the 3rd place for Incorporating category and 4th place in Construction category for the “Prêmio Top Imobiliário”.

Internal

SUSTAINABILITY PRACTICES – SOCIAL INITIATIVES

External

Improvement of well beingof Cyrela workers and

their families

Eliminate illiteracy among Cyrelaworkers

Increase family income throughprofessional training for worker’s

wives

Professional training for youngrelatives of workers

Positive impact in local communities

Cyrela institute (vehicle for workingwith NGOs and developing

programs)

First professional experience for young adults from low income

communities

10

Objectives Examples os initiatives

Objectives Examples os initiatives

Sustainability and acessibility handbook

➢ Sustainable Production

➢ Environmental policy for suppliers

➢ Benchmark in waste management

➢ Recycling Program

➢ CarboboNeutro® Program

Eco-efficiency guidelines for projects:

Selective waste collection

Water-saving devices

Collection of used batteries

Individual water and gas meters

Power-saving devices

Oil collection for recycling

Optimization of resources

Acessibility

Bicycle parking lot

Waste management

Technological development

Nature-friendly construction

Cyrela moves foward in defining integrated eco-efficient actions.

SUSTAINABILITY PRACTICES

ENVIRONMENTAL INITIATIVES

11

Distinctive environmentally-friendly practices

Cyrela

➢ Overview;

➢ History;

➢ Strategic focus;

➢ Operational figures;

➢ Financial indicators;

➢ Portfolio.

AGENDA

12

Execution➢ Cost control

➢ Systems and process improvement

➢ Corporate Engineering

➢ Bonus – focus on deliveries

Company Longevity➢ Leader’s development➢ Meritocracy➢ Cyrela’s cultura

Financial Discipline➢ Focus on margin➢ “Cost Culture”➢ Leverage Reduction

Back to Cyrela “DNA”➢ Focus on mid to high-end products➢ Living as a brand➢ MCMV through Cury

BACK TO BASICS

...PROCESS THAT STARTED IN 2010

Governance➢ Commitees➢ Processes and policies

Back to Basics

13

Back to Basics

Partnerships

Startups

Closing / Acquisition

Final Position

2006 2007 2008 2009 2010 2011 2012 ... 2017

5 11 11 9 7 4 4 ... 4

REDUCTION IN THE NUMBER OF JV’S, KEEPING THE

ONES THAT ARE IN LINE WITH CYRELA’S STRATEGY

SHIFT IN STRATEGY HAS ALREADY TRANSLATED INTO

MORE ORGANIC OPERATIONS

Cyrela’s share in projects (%) Cyrela’s share in construction site management (%)1 2

1 Share in projects launched 2 Cyrela + JV’s15

100%80%60%40%20%0%

2016

2007 44%

2008 28%

2009 34%

2010 47%

2011 60%

2012 81%

2013 91%

2014 94%

2015 95%

2017 96%

93%

+100.0%+80.0%+60.0%+40.0%+20.0%0%

76%

2010

65%2007

2008 59%

2009

77%

2011 81%

2012 73%

2013 71%

2014 82%

2015 78%

2017 74%

77%2016

Company should keep working with partners on development

Cyrela has been focusing on using own engineering

GROSS MARGIN

Cyrela expects the gross margin to grow in a sustainable pacegoing foward

16

29.9%

32,8%

24,6%

Gross Margin Gross Margin EX Ret / Riserva Golf

2014

MORTGAGE RATE INCREASE BRINGS MORE SALES CANCELLATION

2016

Unit value

Interest Rate (TR+)

Loan term

1st installment - SAC

Monthly Income

R$400,000

9% p.a

35 years

R$ 3,068

R$ 12,273

R$400,000

11,5% p.a

35 years

R$ 3,678

R$ 14,712

+ 2.5 p.p.

+20%

ExampleAssumptions: Loan-to-Value 80% (LTV)

25.0% 25.0%

17

Income Comitment

RECOGNIZED BRANDS AND DIVERSIFIED PROTFOLIO

➢SP➢RJ➢SOUTH➢MIDDLE WEST

JV’sNew Businesses

18

Financial strenght, credibility and entrepreneurship

THE WAY CYRELA PLAYS IN THE REAL ESTATE MARKET

USING AN INTEGRATED BUSINESS PLATFORM

Luxury / High

Middle

Economic

19

Cyrela

➢ Overview;

➢ History;

➢ Strategic focus;

➢ Operational figures;

➢ Financial indicators;

➢ Portfolio.

AGENDA

20

➢ PSV of R$ 47.5 bn (100%) and R$ 41.6 bn (%CBR).

➢ 75% of landbank acquired through swaps.

(R$ billion)

LANDBANK

OthersSouthSão PauloRio de Janeiro

14.3

Total

47.5

33.2

14.3

23.5

9.3

14.3

3.5 6.2

Swap agreement

21

Cyrela – Landbank (100%)

Direct employees

OPERATIONAL HISTORY

22

6.6

2012

5.6

2011

8.0

2010

7.7

2009

5.7

2008

4.8

-27%

+18%

6M17

1.3

2016

2.9

2015

2.9

2014

5.8

2013

-44%

+9%

6M17

2.8

2016

9.7

2015

8.4

2014

13.1

2013

27.9

2012

23.4

2011

26.1

2010

27.6

2009

26.4

2008

18.3

-35%

+10%

6M17

1.3

2016

2.8

2015

3.4

2014

5.7

2013

7.2

2012

6.0

2011

6.5

2010

6.2

2009

5.2

2008

4.4 820984946

514

2014

1,264

2013

1,373

2012

1,460

2011

1,728

2010

1,512

20092008

-14%+50%

20162015

Launches - PSV (R$ billion) Launched units (thd.)

Pre Sales - PSV (R$ billion)

CYRELA

OPERATING RESULTS

➢ 20 projects launched in 6M17, 32 in 2016, 91 in 2015 and 53 in 2014;

➢ 6.1 thd units sold in 6M17, 8.7 thd in 2016, 9 thd in 2015 and 14.6 thd in 2014.

23

4.5

2008

1.2

7.6

6.0

2009

1.7

7.9

6.3

2010

1.6

3.8

5.5

2.9

5.6

3.9

2011

1.7

6.6

4.6

2012

2.0

5.8

4.9

2013

1.0

2.9

5.7

2014

0.5

2.2

0.7

2015

2.4

1.7

9M17

1.2

0.5

1.8

2016

CBRPartners

2016

2.8

2.1

0.6

2015

3.4

2.6

0.8

2014

5.7

4.7

1.0

2013

7.2

5.1

2.1

2012

6.0

4.4

1.6

2011

6.5

5.3

1.2

2010

6.2

4.8

1.4

2009

5.2

4.0

1.3

9M17

2.0

1.5

0.5

2008

4.4

3.1

1.3

Launches - R$ Billion Pre-Sales - R$ Billion

SALES

* Considering the sales LTM

(R$ billion)

24

Northeast

7%South

6%

Rio de Janeiro 20%

São Paulo - Other Cities

9%

São Paulo56%

North and Others

2%

-27%

+10%

9M17

2.0

2016

2.8

2015

3.4

2014

5.7

2013

7.2

2012

6.0

2011

6.5

2010

6.2

2009

5.2

2008

4.4

2Q16

30.8%

1Q16

29.1%

4Q16

29.1%

3Q16

27.2%

3Q17

32.7%

Pre Sales - PSV (R$ billion) Sales per Region

Sales speed* - 12M

SALES BY VINTAGE

(R$ million)

25

Sales Speed of the last 12 months attained 32.7% in 3Q17.

321

703142

695

583

267

277

267

191

277

1,675

+27.4%

3Q17

730

3Q16

573

9M179M16

105

+19.7%

2,006

1,156

61%

50%

18%

31%

50%

12%

12%

22%

16%

4%

5%

3Q17

2Q17 47%

1Q17 47%7%

4Q16 78%10% 6%

3Q16 84%

2%

In 15 months

In 12 months

In 9 months

In 6 months

In 3 months

Previous Years Launches

Previous Quarters Launches

Quarter’s Launches

Sales by vintage of lauchings Sales by vintage of lauchings – Sos 12M

INVENTORIES

➢ R$ 6,2 billion of inventory (R$ 5,2 billion %CBR).

26

6,212

3,556

2,656

2Q17

6,441

3,975

2,466

1Q17

6,646

4,193

2,453

4Q17

6,537

4,135

2,402

3Q16

6,412

4,271

2,142

3Q17

Em AndamentoConcluído

Inventories – Market value (R$ MM) Inventories – Delivery date

Inventory to be

deliveredTotal Consolidation Equity Method

Finished 2,656 2,220 436

12 Months 1,565 1,389 175

24 Months 1,089 832 258

36 Months 902 713 189

48 Months - - -

Total 6,212 5,154 1,058

27

TOTAL INVENTORY

-3.6%

Inventory

3Q17

6,212.2

Price

change

-31.4

Sales of

launches

3Q17

-266.6

Launches

3Q17

531.9

Sales of

inventories

-463.0

-221.7

-241.4

Inventory

2Q17

6,441.3

Inventory under construction Finished inventory

Minas Gerais

0.4%

Espírito Santo

0.8%

Middle West

3.9%

North

2.3%South

9.4%

Northeast3.6%

Rio de Janeiro

25.4%

São Paulo - Other Cities

20.4%

São Paulo

33.6%

Changes in Inventory Inventory Breakdown

(R$ million)

➢ R$ 2,656 million of finished units inventory (vs. R$ 2,466 million in 2Q17).

(R$ million)

FINISHED UNITS INVENTORY

28

+8%

Finished Inventory

3Q17

2,656.5

Price Change

-84.7

Deliveries

496.8

Finished Inventory

Sales

-221.7

Finished Inventory

4Q16

2,466.1

Espírito Santo

1.9%

Northeast

0.9%South

15.3%

Middle West

3.2%North 2.4%

Minas Gerais 8.4%

Rio de Janeiro

27.1%

São Paulo -Other Cities25.3%

São Paulo

15.4%

Finished Units Finished Units Breakdown

7.5

2.1

5.4

-11.2%+15.2%

9M17

13.1

8.2

4.9

2016

21.3

11.1

10.2

2015

24.0

14.8

9.1

2014

20.8

9.2

11.6

2013

25.0

11.8

13.2

2012

24.1

15.2

8.9

2011

▪ 4.5 thousand units delivered in 3Q17, in 14 projects. In the year, 13.1 thd. units in 41 projects.

▪ Middle + MCMV: 3.1 thousand units delivered in 7 projects in 3Q17. In the year, 8.2 thd. units delivered in 18

projects.

▪ The units delivered in 3Q17 represent launches PSV of R$ 1.5 billion. In the year, the PSV delivered represented

R$ 3.8 billion.

(Units thd)

DELIVERED UNITS

Middle+MCMV

High End

29

+28% +11%

3Q16

1,381

392

990

3Q172Q17

1,197

435763

2,252

-31%

9M179M16

5,498

1,462

4,036

1,532

643

889

3,784

1,532

AGENDA

Cyrela

➢ Overview;

➢ History;

➢ Strategic focus;

➢ Operational figures;

➢ Financial indicators;

➢ Portfolio.

30

571

-144

151

448

661

498

600

2011

660

2013 201520142012 2016 9M17

FINANCIAL RESULTS - YTD

(R$ million)

* Data before “CPC” (IFRS 10 and 11) “Ex-RET” 31

Ex RET

Gross Margin Net Margin

Net Income

31.4% 32.3% 32.7%32.1%

34.6%33.3%

27.5%

2011 2012 2013 2014 2015 2016 6M17

12.3%

8.8%

13.4%

11.4%10.3%

4.5%

2011 2012 2013 2014 2015 2016 6M17

FINANCIAL RESULTS

(R$ million)

Margin

32

591

826

614

-26%+4%

3Q16(pro forma)

3Q172Q17

154

247

147

-40%-4%

3Q16(pro forma)

30.7%

3Q17

24.6%

2Q17

26.7%

-141

3Q16

14

1.8%

3Q17

-7

2Q17

Gross Revenue Gross Profit and Gross Margin

Net Income and Net Margin

COVENANTS

>= 1,5

ou <0

<= 0,80

>= 1,5

ou <0

0.17

0.07

-0.09

-0.03

3.58

3.61

4.24

7.329.33

-17.81-44.00 -43.57

2,288.90

-205.88-3.32

TOTAL DEBT+ PROPERTIES PAYABLE - SFH DEBT - DISPOSALS

EQUITY

RECEIVABLES + PROPERTY FOR SALE

NET DEBT - PROPERTIES PAYABLE - UNRECOGNIZED COSTS AND EXPENSE

EBIT

FINANCE COSTS

RETURN ON EQUITY

➢ Return on Equity (net income LTM / Average Equity LTM (ex - minorities) attained -1.9%

* ROE: Net income / Average shareholders’ equity, excluding minorities

34

Ex-RET

2Q17

-1.5%

1Q17

1.6%

4Q16

2.5%

3Q16

3.7%

3Q17

-1.9%

HEALTHY LIQUIDITY AND DEBT INDICATORS

(R$ million)

* Data before “CPC” (IFRS 10 and 11)

1Q17

22.8%

2016

25.1%

2015

22.2%

2014

32.8%

2013

39.6%

2012

41.5%

35

Gross Debt 2Q17 (pro

forma)

3,4

2,1

1,2

Net Debtand Cash

Equivalents

Cash and Cash Equivalents

1,6

1,4

Term

3,1

1,7

1,3

Gross Debt 3Q17

3,1

1,9

1,2

IndicatorsTotal Debt

DebtEx-SFH

Net Debt/ Equity

22.8%

Average CostW/o SFH: 102.6% CDI

SFH: TR + 9.3% p.y.

Duration 1.5 year 1.5 year

Short Term 43% 29%

Long Term 57% 71%

Debt

Net Debt / Equity

TRANSFERS, PAYOFFS AND TRUST OF DEEDS

▪ In 3Q17, the volume of transfers, payoffs and trust of deeds attained R$ 858 million, 16.1% higher

than 2Q17 and 24.2% higher than 3Q16.

(R$ million)

UnitsVolume

(Thd. units)

432574

461

203

218

22666

+16.1%+24.2%

2Q17

739

53

3Q17

858

3Q16

690

55

TransfersTrust of DeedsPayoffs

+24.8%+27.3%

2Q17

3.1

2.2

0.1

0.7

3Q17

3.9

2.9

0.2

0.8

3Q16

3.1

2.0

0.2

0.9

* Previous periods are presented in pro forma way, considering MAC thru Equity Results.

BUSINESS, CASH FLOW AND ACCOUNTING CYCLES

1 Source: Cyrela 2 Note: (1) Cycle I: In terms of % VGV of one project; Cycle II in terms of % revenues related to one project

Land swap or acquisition

Development12-24 months

Sales & Construction36 months

Consuption of 15% in case of acquisition

Low cash comsuption

5% cash recovery Recovery of 25%

- - -Revenues as percentage of completion method

Delivery3 – 12 months

Final 70% of VGV

100% of revenues recognized

Launch

3% consumption due to marketing

3% of revenue recognition

Cash Flow

Accounting

70%

(15%)

0%

100%

Cash flow

Accounting

Business cycle

37

CASH GENERATION*

(R$ million)

*Ex dividends, buyback and stake acquisition38

▪ Cash generation of R$ 285 million (R$ 182 million ex-Tecnisa) in 3Q17, vs. a cash generaton of R$ 64 million in 2Q17.

103

83

384

-73

18284

-164

3Q17

285

2Q17 (pro

forma)

64

9M1

6

9M1

7

-237

467

-20

Operational Cash BurnStake Acquisition

Cyrela

➢ Overview;

➢ History;

➢ Strategic focus;

➢ Operational figures;

➢ Financial indicators;;

➢ Portfolio.

AGENDA

39

MANDARIM

SÃO PAULO (2006)

➢ The tallest residential

building in latin america (2006);

➢ Ballroom on the 41st floor;

➢ First project with different

typologies in the same building;

40

CIRAGAN

SÃO PAULO (2007)

➢ First project to

aggregate a residencial

and a commercial tower in

the same project

41

PARQUE ALFREDO VOLPI

SÃO PAULO (2007)

➢ Very luxury

product, with unit

prices over US$ 5 mi

42

JK 1455

SÃO PAULO (2009)

43

LE PALAIS

RIO DE JANEIRO (2010)

➢ Architecture inspired by two historical buildings in the complex;

➢ The historical buildings were restored and adapted for the leisure

areas;

44

CENTRAL PARK MOOCA

SÃO PAULO (2010)

➢ First mover in a industrial area of São Paulo (Mooca)

➢ Innovative product, creating a park inside the project

➢ All of its 560 units were sold in 10 days

45

LE PARC

SALVADOR / BAHIA (2012)

➢ Largest Cyrela’s project;

➢ 18 towers, 1.138 units;

➢ PSV of R$ 1 billion (2013

value);

➢In the middle of the project,

there is a 10,000 sqmt leisure

facility

46

RISERVA GOLF

RIO DE JANEIRO (2014)

➢ Unique project in Barra da Tijuca;

➢ 2016 Olympics golf course;

➢ Average sqm. Price: from R$ 25 thd to R$ 30 thd.47

CYRELA BY PININFARINA

SÃO PAULO (2014)

➢ Unique project in São Paulo (Vila Olímpia);

➢ Price per sqm.: R$ 25 thd

48

ONE SIXTY

SÃO PAULO(2015)

HERITAGE

SÃO PAULO(2017)

CONTACT IR

Cyrela Brazil Realty S.A. Empreendimentos e Participações

Av. Brigadeiro Faria Lima, 3.600 – 12th Floor

São Paulo - SP – Brasil

Zip Code 04538-132

Investor Relations

Phone: (55 11) 4502-3153

ri@cyrela.com.br

www.cyrela.com.br/ir

Statements contained in this press release may contain information which is forward-looking and reflects management'scurrent view and estimates of future economic circumstances, industry conditions, company performance and thefinancial results of Cyrela Brazil Realty. These are just projections and, as such, exclusively based on management'sexpectations of Cyrela Brazil Realty regarding future business and continuous access to capital to finance the Company'sbusiness plan. Such future considerations rely substantially on changes in market conditions, government rules,competitor's pressure, segment performance and the Brazilian economy, among other factors, in addition to the riskspresented on the released documents filed by Cyrela Brazil Realty, and therefore can be modified without prior notice.

51