1

Corporate PresentationBTG Pactual Real Estate Conference – São Paulo

October 20, 2011

2

Disclaimer

This presentation may contain forward-looking statements. Such forward-looking statements are and will be subject to many risks

and uncertainties relating to factors that are beyond Direcional‟s ability to control or estimate precisely, such as future market

conditions, competitive environment, currency and inflation fluctuations, changes in governmental and regulatory policies and other

factors relating to the operations of Direcional, which may cause actual future results of Direcional to differ materially from those

expressed or implied in such forward-looking statements

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this

presentation. Such forward-looking statements shall not be construed as guarantee of future performance. Direcional does not

undertake to publicly review or update these forward-looking statements in view of events or circumstances occurring after the date

of this presentation

This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities.

Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever

This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in

part without Direcional‟s prior written consent.

652

2,227

5,359

9,360

12,364

Start-up in 1981

Development of projects

focused on the low-income

segment

Industrial projects acting as

contractor to third parties

Beginning of

large scale

projects for the

low-income

segment

Operations

expansion to

PA, RO and ES

IPO 32% growth in

units launched

from the previous

year

57% growth in

contracted PSV

from the previous

year

3

Over 30 Years of History

A consistent track record and focus

Source: Company Reports

Units Launched

Consolidation of

a leading

position in

Manaus and

Brasilia Establishment of

own sales team

Important geographic

expansion: Brasília, Rio de

Janeiro and Campinas

1981 - 2005 2006 2007 2008 2009 2010 2011

Capture

significant market

opportunities

MCMV II

Follow-on: $

228.8 million for

the Company

Increasing stock

liquidity

PSV Launched (R$ mm)

What‟s Next?

CAGR 06-10: 110%

CAGR 06-10: 100%

67

176

710

783

1,067

Unique Footprint Strong footprint in markets with high growth potential, low

competition and high barriers to entry

Low competition in

profitable markets

Track Record in

Operating in the Low-

Income segment

Over 30 years of experience

Solid track record in 0-3 minimum wages projects

Low equity commitment,

solid margins and high

ROIC

Focus on Large

Scale Projects

Verticalized

Business Model

Strong expertise in large scale ventures

Own work force

Performance-based compensation

Standardized and industrialized production on-site

Large scale operations in

the low-income segments,

with strict cost control and

high margins

4

Direcional: A Unique Business Model

The best low-income player in Brazil

Source: Santander sector report august 5, 2011.

The most profitable

and efficient player in

the low-income sector

„‟‟‟„

Highest efficiency and profitability in the sector

20.1% of LTM ROIC1st LTM ROIC

1

2

3

4

5

Unique Expertise in the Low-Income Segment

1. Company estimates – maximum cash exposure in % of total PSV

Solid track record in all low-income segments

Characteristics

Developer approach

Companies develop projects and

sell units to customers

Prices above R$170 k / unit

Most of customers mortgages are

provided by large private banks

Developer approach

Companies develop projects and

sell units to customers

Prices are capped at R$170 k / unit

CAIXA facilitates customer financing

Builder approach

Homebuilders present projects to

Caixa for evaluation and approval

Usually land/infrastructure is

donated/provided by local Government

Price are capped at R$51 k / unit

Main Players

Equity Commitment1

Units Launched

2010

~5%~15%~20% ~10%

7,391 units (60%)1,503 units (12%) 3,470 units (28%)

Mid / Low-Income Low-Income (MCMV – 4-10 MW) Very Low-Income (MCMV – 0-3 MW)+ +

PSV Launched

2010R$ 380 mm (36%)R$ 245 mm (23%) R$ 441 mm (41%)

MCMV Program RET 1

Largest housing program in Brazilian history

First Priority of the Federal Government

The 0-3 segment has increased threefold, reaching 1.2 million units

The regional distribution of the program should benefit Direcional

6

Opportunities to be Captured in the Low-Income Segment

400,000

1,200,000400,000

600,000

200,000

200,000

Income limit R$ 1.6k limit R$ 3.1k limit R$ 5.0k

MCMV1

BRL 34 Billion1,000,000 Units

MCMV2

BRL 72 Billion2,000,000 Units

Special taxation regime: Lower tax rate (from 6% to 1%)

Large Scale Projects

Industrialized construction process

Units under R$ 75.0 thousand

6.00%

1.00%

RET1Tax Rate 1%

RET6Tax Rate 6%

Tax Rate

1st Phase “MCMV”

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Opportunities to be Captured in the Low-Income Segment

Low-Income segment presents an outstanding growth opportunity

PAR 2nd Phase “MCMV” RET1+ + +

# of projects: 5

# of Units: .3,602

Total PSV: R$ 153.7 million

Previous to “MCMV” Program

# of projects: 3

# of Units: .7,391

Total PSV: R$ 380.3 million

2% of total program

Units of the Program: 400k

# of projects: 1

# of Units: .5,384

Total PSV: R$ 313.4 million

Units of the Program: 1.2

million

# of projects: 3

# of Units: .2,540

Total PSV: R$ 149.2 million

Units under R$ 75.0 thousand

Special taxation regime

RET 1% Projects:

# of projects: 3

# of Units: .2,540

PSV: R$ 149.2 million

Very Low Income Projects:

# of projects: 9

# of Units: .16,377

Total PSV: R$ 847.4 million

Large Scale Projects + Industrialized construction process

Petrópolis - AM Meu Orgulho 1st Phase Meu Orgulho 2nd Phase Total Ville Macaé - RJ

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“Meu Orgulho”: The largest “MCMV” project…

On September 1st Direcional signed an agreement for the construction of the 2nd phase of “Meu

Orgulho” project in Manaus, with 5,384 units from the total of 8,895 units.

# Units

Segment

Development

Infrastructure

3,511

MCMV – 0-3 mw

R$ 149,2 million

R$ 41,4 million

Total PSV R$ 190,6 million

Location Manaus - AM

“Residencial Meu Orgulho” – 1st Phase

Launch 2Q10

# Units

Segment

Development

Infrastructure

5,384

MCMV – 0-3 mw

R$ 272.6 million

R$ 40.7 million

Total PSV R$ 313.4 million

Location Manaus - AM

“Residencial Meu Orgulho” – 2nd Phase

Launch 3Q11

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...industrialized construction process…

1st month 2nd month

3rd month 4th month

“Meu Orgulho” - Manaus-AM (Dec/10 to Sep/11 - 10 months)

107th month 8th month

5th month 6th month

...industrialized construction process…

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9th month 10th month

2Q10

R$ 149.2 million

100%

100%

R$ 54,440

R$ 1,361

3,511

Launch

Total PSV

% Direcional

% Sold ⁽¹⁾

Unit‟s Price

Price (sq.m)

# Units

R$ 41.4 millionInfrastructure

...industrialized construction process

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VÍDEO

www.direcional.com.br/ri

Efficiency in Operating the Low-Income Segment

The 0-3 model presents similar margins with a higher ROIC

Main Advantages of 0-3 MW Model

No commercial risks

Non marketing & Brokerage costs

Lower tax rate (from 6.7% to 1.0%)

Lower equity invested for land acquisition

Lower cash exposure

Higher ROIC

100% of the units pre sold to CAIXA

Constructive process

13

Operational Highlights

9M11 and 3Q11

13

14

Launches / Sales

Launches

Segment Breakdown - 9M11 (% PSV)

Launches

Geographic Breakdown - 9M11 (% PSV)

176

710 783

1.067 888

2007 2008 2009 2010 9M11

Evolução dos Lançamentos(R$ milhões)

CAGR 07-10: 82%

Launched PSV – Track Record

(R$ million)

127

441 661

1.037 773

2007 2008 2009 2010 9M11

Evolução das Vendas(R$ milhões)

CAGR 07-10: 101%

Contracted PSV – Track Record

(R$ million)

North 68%

Southeast

27%

Midwest

6%

0 - 3 MW; 35,3%

Low-Income; 22,4%

Medium; 25,4%

Upper Middle;

5,4%

Commercial; 11,5%

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Land Bank Land Bank of R$ 7.0 billion with potential to build 68,007 units;

Average acquisition cost is 9.3% of total PSV (76.4% paid swap);

77.9% of units (59.2% of PSV) to be launched are related to large scale projects.

Low-Income, 52.4%

Commercial, 4.8% Medium,

36.0%

Upper Middle,

6.8%

Manaus Total Ville AM Under construction 3,848 2,136

Total Ville Bella Cittá PA Under construction 4,938 3,316

Total Ville Marabá PA Under construction 5,604 4,664

Allegro Residencial Club AM Under construction 1,648 704

Setor Total Ville DF Under construction 4,672 2,064

Total Ville Porto Velho RO Under construction 2,852 1,868

Dream Park ES Under construction 1,034 752

Eliza Miranda AM Under construction 1,406 128

Cachoeiras do Madeira RO Under construction 1,278 426

Total Ville Macaé RJ Under construction 1,148 -

Floramar MG Under construction 1,172 796

Águas Claras DF To be Launched 1,148 1,148

Granjas Werneck MG To be Launched 15,000 15,000

Sítio São João MG To be Launched 2,500 2,500

Ferroeste MG To be Launched 2,388 2,388

Samambaia DF To be Launched 14,614 14,614

Total 65,250 52,504

Project Status Total UnitsUnits to be

launched

Pipeline of Large Scale Projects

Licensed Projects

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Concluded Projects – 9M11

Total

(R$'000)

% Direcional

(R$'000)

1 Equilibrium Manaus - AM 49.501 43.561 136

2 Águas do Madeira Porto Velho - RO 61.520 40.973 426

3 Grand Prix Manaus - AM 42.026 36.983 192

4 Lake View Resort Brasíl ia - DF 89.513 87.812 232

5 Garden Club - 1st Phase Porto Velho- RO 34.394 27.515 313

6 Dream Park Serra - ES 44.629 35.704 282

7 Gran Paradiso Belo Horizonte - MG 13.885 13.621 128

8 Villagio Santa Mônica Belo Horizonte - MG 10.417 10.219 120

9 Vernissage Campinas - SP 16.409 8.448 58

Concluded Projects - 9M11 362.295 304.835 1.887

Completed Projects - 9M11 City - State

PSV

# of Units

17

Financial Highlights

1H11 and 2Q11

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14.9 20.7 33.0 48.2 56.8 57.7

10.1%12.2% 15.2% 17.7%

23.8% 23.0%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11% Gross Revenue

102,3263,2

377,6

781,9

478,7

21,1%24,5%

22,5% 22,6%

19,1%

0,0 %

5,0 %

10, 0%

15, 0%

20, 0%

25, 0%

30, 0%

0,0

100 ,0

200 ,0

300 ,0

400 ,0

500 ,0

600 ,0

700 ,0

800 ,0

900 ,0

2007 2008 2009 2010 1H11Adjusted net Margin (%)

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Highlights

CAGR: 97,0%

Net Revenues - Track Record

(R$ million)

Services Revenues Growth

1Q10 – 2Q11 Growth: +286,7%

Gross Revenue Breakdown: 1H11

Development, 76.6%

Management Fee, 0.8%

0-3 MW Projects, 22.1%

Brokerage, 0.5%

14,52225,312 22,468

32,65741,236

73,695

86,301

100,873

64,967

33,965

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11* 2Q11

Moving Average of Last 4 Quarters

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Cash and Debt Position

Cash Burn¹ (R$ million)

Loans and Financing

(ex- securitization)

-36%

-48%

1. Cash Burn: measured by the variation of the net debt, less capital increases

* 1Q11: Adjusted by R$ 223,8 million of follow-on and R$ 40.3 million of dividends payment

Cash Position 2Q11

(R$'000) (a)

Loans and Financing 408,630

SFH 341,303

Securitization of receivables 37,216

FINAME and others 9,149

Working Capital 20,962

Cash and Cash Equivalents 381,768

Net debt 26,862

Net debt / Equity 2.4%

SFH, 91.9%

FINAME and others, 2.5%

Working Capital, 5.6%

86194

224

324

Dez. / 10 Jun. / 11

Investments Funds Individuals 20

Follow-On

20.8 million new shares were issued in the primary offer and 7.2 million sold in the secondary offering

Increased the free float from 39.5% to 53.1%.

Before Follow On After Follow On

Average Daily Volume¹

(R$‟000)

+118%+67%

Total # of Shareholders

1: three months before follow-on and three last months.

Majority Shareholder

60.5%

Tarpon15.0%

Ridgecrest8.0%

GIC3.6%Others

12.9%

Majority Shareholder

46.8%

Tarpon15.0%

Ridgecrest6.9%

GIC7.2%

Others24.1%

511.6

1,116.8

Before Follow On After Follow On

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Shares Performance Since IPO

0

20

40

60

80

100

120

140

160

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

19

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Pre

ço d

a A

ção

Vo

lum

e (

R$

mil)

Volume (R$ '000)

0

20

40

60

80

100

120

140

160

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

18

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29

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26

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12

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26

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Sto

ck P

erf

orm

ace

Vo

lum

e (

R$

'00

0)

Average Volume (21 days) Direcional Ibovespa IMOB

22

Appendix

22

Corporate Governance

Board of Directors

Board of Executive Officers

Operations

Shareholderes

► Own Governance Standards

► Nominate Members to the Board of

Directors

Advisory Committees

► Nominated by the Board of

Directors

► Not deliberative

► Bi-monthly meetings or ad-hoc

Deliberative Committees

► Board of Directors + Directors +

Guests

► Monthly meetings or ad-hoc

Investment

Committee

Finance

Committee

Compensation

Committee

► Fixed Assets

► Diversification

► Mergers and Acquisitions

► Cash Management Policies

► Capital Structure

► Risk Management

Investment

Committees

Engineering

Committee

Human

Resource

Committee

► Land bank purchases

► Launchings

► Pre-budget approval (release)► Approval of budget and

planning (beginning work)

► Performance Valuation

► Variable Compensation

23

24

Company Structure

Source: Company

Engineering/

Construction

Development /

Commercial

Detailed Design

Health, Safety &

Environment

Viability Studies

Market

Support/Sales

AdministrativeSu

pport

Quality/

Technology

Conceptual

Design /

Products

Legal

(Real Estate)

AM

DF,PA,RO

MG,ES

SP,RJ

AM

Special Projects

(“0 – 3”)

President CEO

CFO / IR

Legal

(Corporate)

HR

Comunic. &

Market. Corp.

Budget/Supply/

Planning

Sustainability/Cu

stomer

Relationship

Guidelines

Results

Share

hold

ers

MG,ES

DF,PA,RO

SP,RJ

Clie

nts

25

Contacts

Carlos WollenweberCFO | IR Officer

Lucas BousasIR Analyst

Paulo SousaIR Analyst

www.direcional.com.br

ri@direcional.com.br

(55 31) 3214-6200

(55 31) 3214-6450