EARNINGS 4Q15

Conference Call March 4, 2016

SAFE-HARBOR STATEMENT We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management, and on information currently available to us. Forward-looking statements include statements regarding our intent, belief or current expectations of our directors or executive officers.

Forward-looking statements also include information concerning our possible or assumed future results of operations, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions. Forwardlooking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future results and shareholder values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict.

2

GAFISA SEGMENT 4Q15 Results 

The Gafisa Segment launched five projects in the 4Q15, representing R$380.3 million. In 2015, 12 projects were launched, totaling R$996.3 million



Net pre-sales totaled R$245.2 million in 4Q15, up 38% y-o-y and stable compared to 3Q15. Net pre-sales in 2015 reached R$914.8 million against R$811.0 million in the previous year



In 4Q15, adjusted gross profit was R$127.4 million, with a 36.1% adjusted gross margin against 37.9% in 3Q15 and 30.7% in the previous year. In 2015, adjusted gross profit totaled R$532.6 million, with a 36.9% adjusted gross margin



Adjusted EBITDA reached R$49.9 million, with a 14.1% EBITDA margin compared to 16.6% from the previous quarter and 16.7% from 4Q14. In 2015, adjusted EBITDA was R$227.4 million with a 15.8% margin



Selling, general and administrative expenses remained stable compared to the previous year, totaling R$55.3 million in the quarter. In 2015, it had a decrease of 11% y-o-y, totaling R$195.4 million



In 4Q15, Gafisa’s net income was R$13.8 million, compared to R$36.8 million in the previous year. In 2015, the Gafisa segment reported a net income of R$44.1 million.

3

GAFISA SEGMENT Operational and Financial Highlights (R$ 000 and % Gafisa)

4Q15

3Q15

Q/Q (%)

4Q14

Y/Y (%)

12M15

12M14

Y/Y (%)

Launches

380,270

288,234

32%

-

-

996,316

1,023,012

-3%

Net pre-sales

245,196

247,608

-1%

177,294

38%

914,796

811,032

13%

Net pre-sales of Launches

129,227

71,433

81%

57,770

124%

282,069

342,387

-18%

10.8%

11.0%

-20 bps

7.2%

360 bps

31.1%

26.1%

500 bps

1,641

-

-

1,412

16%

4,986

3,806

31%

Net Revenue

352,424

402,483

-12%

490,947

-28%

1,443,357

1,580,860

-9%

Adjusted Gross Profit1

127,392

152,627

-17%

150,806

-16%

532,621

560,254

-5%

Adjusted Gross Margin1

36.1%

37.9%

-180 bps

30.7%

540 bps

36.9%

35.4%

150 bps

Adjusted EBITDA2

49,858

66,846

-25%

81,843

-39%

227,393

296,695

-23%

Adjusted EBITDA Margin2

14.1%

16.6%

-250 bps

16.7%

-260 bps

15.8%

18.8%

-300 bps

Net Income (Loss)

13,818

1,656

734%

36,819

-62%

44,129

66,887

-34%

Sales over Supply (SoS) Delivered projects (Units)

1) Adjusted by capitalized interests. 2) Adjusted by expenses with stock option plans (non-cash), minority. and does not consider AUSA equity income.

4

GAFISA SEGMENT G&A reduction and consistent adjusted gross margin Launches (R$ million)

 Maintenance of the level of net

Gross Sales by Market (R$ million)

453 383

sales in the period, despite a more

679 291

challenging macroeconomic

244

scenario

419 354

101

315 253

213

63

41

55

75

54

33

52

49

25

13

12

12

0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q15 SP + RJ

the Gafisa segment, observed

Adjusted Gross Margin 1,664

1,581

5%

42,0% 37,9%

its projects

Other Markets

Net Revenues (R$ million)

since the beginning of 2013, due to the solid performance of

280

288 48

107

the quarter at 36.1%, confirming the equilibrium and stability of

294

235

221

358

380

217

 Adjusted gross margin ended

318

345

36,1%

327

5%

340

348

402

352

0%

0%

0%

398

365

491

2%

3%

2%

1%

98%

97%

98%

99% 100% 100% 100%

14%

30,7%

 G&A expenses decreased

95%

95% 86%

by 21.9% compared to previous year 4Q13

4Q14

3Q15

4Q15

2013 2014 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 SP+RJ

Other markets

5

TENDA SEGMENT 4Q15 Results 

The Tenda segment launched 9 projects in this fourth quarter, totaling R$302.6 million in PSV. In 2015, launches reached R$1.1 billion



Net pre-sales totaled R$237.5 million in 4Q15, an increase of 88% y-o-y, and a 3% decrease compared to 3Q15. In the year, net pre-sales reached R$1.0 billion



In 4Q15, adjusted gross profit was R$61.9 million, with a 29.9% adjusted gross margin against 32.1% in 3Q15 and 28.6% in the previous year. In 2015, adjusted gross profit totaled R$260.2 million with a 30.6% margin compared to R$153.1 million of adjusted gross profit and a 26.9% margin in the previous year



Adjusted EBITDA reached R$1.5 million in 4Q15, with a 0.7% EBITDA margin, compared to a 11.0% margin in the previous quarter and a negative margin of 19.5% in 4Q14. In the year, adjusted EBITDA was R$62.2 million, with a 7.3% margin



Selling, general and administrative expenses showed an increase of 14% y-o-y and a decrease of 6% compared to the previous quarter, reaching R$40.6 million. In 2015, these expenses increased 8.0%, totaling R$150.8 million



Tenda’s net result was a negative R$13.0 million in 4Q15, higher than the net loss of R$28.8 million in 4Q14 although lower than net income of R$11.8 million in 3Q15. In the year, net income was positive R$30.3 million, substantially higher when compared to a loss of R$109.4 million in the same period in 2014.

6

TENDA SEGMENT Operational and Financial Highlights (R$000 and % Tenda)

4Q15

3Q15

Launches

302,635

318,585

-5.0%

241,549

Net pre-sales

237,452

245,195

-3.2%

Net pre-sales of Launches

192,275

162,543

20.9%

12M15

12M14

25.3%

1,088,941

613,299

78%

126,594

87.6%

1,016,131

395,981

157%

18%

92,638

108%

507,570

176,823

187%

23.0%

-210 bps

13.3%

760 bps

53.0%

32.3%

2,070 bps

1,480

1,304

13%

1,624

-9%

5,711

6,264

-9%

206,822

221,560

-7%

158,329

31%

850,962

570,138

49%

Adjusted Gross Profit1

61,927

71,150

-13%

45,262

37%

260,162

153,088

70%

Adjusted Gross Margin1

29.9%

32.1%

-220 bps

28.6%

130 bps

30.6%

26.9%

370 bps

Adjusted EBITDA2

1,464

24,403

-94%

(30,856)

-105%

62,203

(67,503)

-

Adjusted EBITDA Margin2

0.7%

11.0%

-1030 bps

-19.5%

2,020 bps

7.3%

-11.8%

-450 bps

(12,991)

11,830

-

(28,774)

-55%

30,320

(109,436)

-

Sales over Supply (SoS) Delivered projects (Units)

Net Revenue

Net Income (Loss)

Q/Q (%)

4Q14

Y/Y (%)

Y/Y (%)

1) Adjusted by capitalized interests. 2) Adjusted by expenses with stock option plans (non-cash), minority, and does not consider the equity income from AUSA.

7

TENDA SEGMENT Evolution in Level of Revenues and Higher Profitability Launches (R$ million)

Adjusted Gross Margin 319

303 30,4%

242 238 229

 Adjusted gross margin in line with previous quarters

28,5% 28,6%

181 114

 Operational consolidation of the New Model projects with better performance and profitability, contributing to maintaining the adjusted gross margin at high levels

104

13.3% 99 91

88

12,3%

14,7%

33 1.4%

Gross Sales (R$ million)

Net Revenues by Model (R$ million) 269

271

 Annual growth of adjusted EBITDA and adjusted EBITDA margin, reflecting the operational consolidation of the New Model

32,1% 30,0% 30,1% 29.9%

29,8%

226

233

224

233

245 817

183

570

84 57

60

92

177

45% 126 107 75

67

129

158

15%

24%

154 153 116

106

36%

179

243

28% 27%

222

16%

67

85%

76% 55%

54 32

14

6%

61%

90% 75

207

64%

72% 73%

84%

94%

39%

10% 2013 2014 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

1Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q15 New Projects Legacy

New Projects

Legacy

8

CONSOLIDATED RESULTS Operational and Financial Highlights (R$000 and % Gafisa)

4Q15

3Q15

Launches

682,905

606,819

13%

241,549

183%

2,085,257

1,636,311

27%

Net pre-sales

482,648

492,803

-2%

303,888

59%

1,930,927

1,207,013

60%

Net pre-sales of Launches

321,502

233,976

37%

150,408

114%

789,639

519,210

37%

14.1%

14.8%

-70 bps

8.9%

520 bps

39.7%

27.9%

1,180 bps

3,121

1,304

139%

3,036

3%

10,697

10,070

6%

Net Revenue

559,246

624,043

-10%

649,276

-14%

2,294,319

2,150,998

7%

Adjusted Gross Profit1

189,319

223,777

-15%

196,068

-3%

792,783

713,342

11%

Adjusted Gross Margin1

33.9%

35.9%

-200 bps

30.2%

370 bps

34.6%

33.2%

140 bps

Adjusted EBITDA2

78,026

92,417

-16%

71,725

9%

339,639

261,491

30%

Adjusted EBITDA Margin2

14.0%

14.8%

-80 bps

11.0%

300 bps

14.8%

12.2%

260 bps

827

13,486

-94%

8,045

-90%

74,449

(42,549)

-

Sales over Supply (SoS) Delivered projects (Units)

Net Income (Loss)

Q/Q (%)

4Q14

Y/Y (%)

12M15

12M14

Y/Y (%)

1) Adjusted by capitalized interests. 2) Adjusted by expenses with stock option plans (non-cash), minority, and does not consider AUSA equity income.

9

DEBT AND LEVERAGE Net Debt/Equity Ratio of 46.6% Leverage 4Q15

Debt Breakdown (R$ mm) Cash generation of R$128,4M in 4Q15

0.47x

Net Debt/Equity

Debentures FGTS

TR + 9.08% - 9.8247%

654

Debentures WC

CDI + 1.90% - 1.95% / IPCA + 7.96% - 8.22%

204

2.858 2.485

2.519

Project Finance/SFH

TR + 8.30% - 11.00% / 117.0% CDI / 12.87%

1.162

2.024 1.404 782

1.444 1.101

1.408

1.563

1.159

1.280

1.385

1.440 1.535

1.563

1.572

1.443

1.463 1.157

Net Debt

Working Capital

Availabilities 1.116 877

922

712

Obligations with Investors

5

Total

120,2%

94,0%

CDI + 2.20% / 117.9% CDI

131

CDI + 0.59% Average Cost – 14.05% (99.4% CDI)

2.156

96,2%

36,1%

44,9%

44,9%

44,3%

47,1%

50,0%

50,4%

50,5%

46.6%

Debt Maturity Timeline

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Leverage Level

 In 4Q15, R$570.7 million in gross debt was amortized

23% 87%

91%

66% 77%

 Net effect was amortization of R$463.2 million  One of the smallest leverage levels in the sector, aligned to the Company’s guidelines (55-65%)

13% Up to Dec/16

9% Up to Dec/17 Corporate Debt

34% Up to Dec/18

After Dec/18

Project Finance

10

SPIN-OFF PROCESS Processo de Spin Off Updated status Status Atualizado

Ao longo do quarto trimestre, demos continuidade aos estudos para uma potencial separação das unidades de negócio Gafisa e Tenda. Durante 2014 foram implementadas uma série ações, de modo a permitir uma operação On Aprilo ano 29,de2015, further to the material factdereleased on February 7, 2014, theindependente: Company divisão efetiva de diversos departamentos, como its Central de Serviços, Gente e Gestão, Jurídico, entre outras; alteração disclosed a new material fact informing shareholders and the market in general that studies do registro da categoria emissor deseparation Tenda junto of à (CVM), passando à Categoria A; atuação units junto aos and evaluation of thedepotential the Gafisa and Tenda business arebancos still ine seguradoras para abertura de limite de crédito independente para Tenda; e mapeamento de contratos e avaliação de progress, aimed at achieving conditions seen as sufficient for its implementation. potencial impacto em virtude do spin-off. Adicionalmente, a Companhia segue dando prosseguimento aos estudos finais relacionados às alternativas de However, considering that the process of definition of capital structure is still ongoing, and separação das duas empresas.

being this definition a necessary step in the separation process, the asset still does not show Dentre as iniciativas e estudos sendo conduzidos, podemos the characteristics for immediate separation in destacar: its current conditions. Therefore, it is not yet possible to determine when the potential separation will be concluded. • • • • •

Avaliação das estruturas societárias possíveis; Evolução dos processos de abertura de crédito em Tenda; Avaliação sobre a futura estrutura de governança corporativa de Tenda; Avaliação junto a BM&F/Bovespa dos procedimentos necessários para a negociação de Tenda, e avaliação de potencial listagem de ADR Nível 1; Definição de um modelo de estrutura de capital adequada ao ciclo de negócios de cada uma das empresas.

Conforme informado quando do anuncio dos estudos iniciais, nossa expectativa é de que a potencial separação, caso aprovada, venha a ser implementada ainda no ano de 2015. A Companhia manterá seus acionistas e o mercado em geral informados quanto à evolução e os desenvolvimentos dessa potencial separação.

11 13

THANK YOU www.gafisa.com.br /ri [email protected]