Itaú CEO Conference

1. CEO CONFERENCE
ITAÚ SECURITIES
19th and 20th May, 2010

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 the 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.
2

3. Agenda
„ Overview
„ Business Model
„ Minha Casa, Minha Vida Housing Program
„ Operating and Financial Highlights
„ Appendix
3

4. Company Overview
Background
Timeline
Shareholder s Structure
Main Executives
Background
Timeline
Shareholder s Structure
Main Executives
4

5. Background
Founded in 1981, based in Belo Horizonte, Direcional has consolidated itself as one of the most important
companies in the segment of development and construction of residential properties in Brazil
Experience as developer and homebuilder
§ More than 130 projects launched
§ In 2009: 19 projects (9,360 units lauched and a R$ 783 million PSV)
Focus on low-income segment
§ Units below R$ 130 thousand represent 80% of the Land Bank
§ Large scale projects (+1.000 units) represent 87% of the Land Bank
Strong footprint in underpenetrated markets with high growth potential
§ Strong presence in the North and Center-West, which represented 87% of launches in 2009
Verticalized business model
§ Own team of employees
§ Performance based compensation
§ Standardized and industrialized processes
Operational Efficiency
§ Management focused on value creation
5

6. Timeline
6
1973 - 1981
1973 -1981:
Mr. Gontijo, Direcional sfounder, expertise in the low-incomesegment (more
than 36,000 units built under his management)
1981 - 2009
2000 2006 2007 200819921981 1986 2009
§ 1986 - 1992:
Industrial
projects, acting
as contractor to
third parties
§ 2000:
Certification for
ISO-9001
§ 2007:
Operations
expanded to ES
and RO
§ 2009: Minha
Casa, Minha
Vida Housing
Program
§ IPO
§ 1992:
Beginning of
operations in
Brasília (DF)
§ 1981: Start up
§ 1981 - 1986:
Developments
focused on low and
mid income
segments
§ 2006: Beginning of
operations in
Manaus (AM)
focusing on large-
size developments
for low-income
segment
§ 2008:
Private equity
partnership
- Tarpon Real
State Fund

7. Shareholder´s Structure
60.7% 23.7% 15.6%
Free float represents more than 39% of total capital
Company listed on Novo Mercado , the highest level of Corporate Governance
Capital is divided into 133.343.242 common shares
1. Holding owned by Mr. Ricardo Valadares Gontijo and his family
2. Funds managed by Tarpon Investimentos S.A.
Filadélphia
Participações 1 Tarpon 2 Other
7

8. Main Executives
Ricardo Valadares Gontijo
Chairman of the Board
CEO
Ricardo Valadares Gontijo
Chairman of the Board
CEO
Ricardo Ribeiro Gontijo
VP of the Board
COO | Commercial Officer
Ricardo Ribeiro Gontijo
VP of the Board
COO | Commercial Officer
Francelino Maranhão
Administrative Officer
Francelino Maranhão
Administrative Officer
Daniel Amaral
CFO | Financial and IR Officer
Daniel Amaral
CFO | Financial and IR Officer
Lucas Rocha
Engineering Officer
Lucas Rocha
Engineering Officer
Founder, CEO and Chairman of the Board
40 years of construction experience
Civil Engineer graduated by UFMG with Gold Medal Award.
Board Member and responsible for Marketing, Sales and New Business
Civil Engineer graduated by UFMG with the Gold Medal Award
Joined Direcionalin 2004
.
Chief AdministrativeOfficer
From 2000 to 2007, CEO of BMB-BelgoMineira Bekaert, a Belgo-Mineiradivision
From 1995 to 2000, Controller and IR Officer of Belgo-Mineira(Arcelor)
Former Board Member of Dedini S.A.
Holds a bachelor s degree in accounting from UFMG and graduate degrees in Business from Harvard
Business School and Fundação Dom Cabral/INSEAD
Chief Financial Officer appointed by Tarpon Investimentos since January/2009
Investor Relations since December/2009
Worked for Tarpon from 2006 to 2009.
Graduatedwith honors in Business Administrationat Fundação Getúlio Vargas SP
Responsiblefor the engineering department with more than 30 years of experience in construction
Holds a bachelor s degree in Civil Engineering
Joined Direcionalin 1985
8

9. Business Model
Pipeline of Projects
Presence in Underpenetrated Markets
Large-Scale Projects
Own Building Team
Standardized Processes
Cash Flow Cycle
Pipeline of Projects
Presence in Underpenetrated Markets
Large-Scale Projects
Own Building Team
Standardized Processes
Cash Flow Cycle
9

10. Pipeline of Projects
§ Land Bank of R$ 7.5 billion (R$ 5.2 billion % Direcional) with 61,194 units
§ Land Bank average cost of 7.7% of estimated PSV and 71.9% acquired through swap
MINHA CASA, MINHA VIDA
47.731 units elegible program
78.0% of total land bank
Land Bank Composition Large Scale Projects
RO
94% of PSV
87,1% of the units comprise large scale projects
17.614 units ready to be launched
PSV Breakdown per Segment
AM
MG
RO
PA
DF
Média-alta
1.1%
Médio
18.3%
Popular
79.9%
Comercial
0.8%
Project Status Total units
Units to be
launched
PSV (R$ MN) to
be launch
Manaus Total Ville AM Under Construction 3,576 2,136 249.1
Total Ville Bella Cittá PA Under Construction 4,049 3,177 357.3
Total Ville Marabá PA Under Construction 5,712 5,188 562.9
Allegro Residencial Club AM Under Construction 1,648 704 111.6
Setor Total Ville DF Under Construction 5,096 3,165 301.8
Total Ville Porto Velho RO Under Construction 2,428 1,938 175.8
Dream Park ES Under Construction 1,034 752 126.8
Eliza Miranda AM Under Construction 2,112 128 19.7
Cachoeiras do Madeira RO Under Construction 1,278 426 75.4
Águas Claras DF Launching in 1H11 1,148 1,148 400.2
Granjas Werneck MG Launching in 2H11 15,000 15,000 1.500.0
Floramar MG Launching in 1H11 1,261 1,261 211.9
Samambaia DF Launching in 1H12 14,614 14,614 1.584.0
Projeto Macaé RJ Launching in 2H10 1,182 1,182 95.7
Sítio São João MG Launching in 2H11 2,500 2,500 250.0
Total 62,638 53,319 6,022.2
Commercial
Upper Middle
Medium
10

11. Presence in Underpenetrated Markets
with High Growth and High Barriers to Entry
Direcional focuses on markets where it would be able to have a clear leading position
Source: IBGE
Barriers to Entry
Unskilled
Labor
§ Highly-trained workers
§ Standardized and fully-integrated
construction
Complex
Logistics
§ Detailed mapping of logistics and
supply channels
§ Large and vertically integrated
projects
Scarcityof
Suppliers
§ Industrializationof raw materials
§ Vertically integrated model is rapidly
replicated
Adverse
Weather
Conditions
§ Pre-manufacturedbuilding materials
adapted to diverse climates
§ Expertiseto start construction
phases at the right time
Shortageof
Brokers
§ Own and highly-trained sales force,
experienced in the low-income
segment
Direcional s Approach
CAGR=
94%
Housing Credit Growth
R$ million
CAGR=
57%
CAGR=
133%
Brazil
CAGR =
80%
CAGR=
166%
68 64
418 463
100 173
718
992
370
449
1,024
1,749
AM PA DF MG
2006 2007 2008
Average
Brazil =
2.9%
+203,708
domiciles
+734,799
domiciles
+262,499
domiciles
+97,892
domiciles
+543,792
domiciles
CAGR 03-07
14.4%
11.5%
9.0%
3.4%
2.3%MG
DF
AM
PA
RO
Domiciles Growth
11

12. Large-Scale Projects
„ Buildings with 4 floors, garage floor, without elevator
„ Complete leisure: swimming pools, barbecue area, parks,
ballroom, walking track, soccer field, bike lanes
„ Large projects, with more than 1,000 units, located in areas of
severe housing shortage like Porto Velho (Rondônia) and
Manaus (Amazonas)
„ Apartments of 50 sq.m - 80 sq.m with selling price around R$ 1.900 /
sq.m
„ Green Area: balanced distribution of wide avenues, residential towers
and other facilities
„ Commercial area
„ Prime Location: few minutes from downtown
„ Easy access by major roads
„ Public transportation available
„ Safety: vehicle patrols
PLANNED NEIGHBORHOOD WITH SHOPPING CENTER
Total Ville concept: A large-scale product designed to offer housing, leisure, safety, functionality and convenience.
Direcional is a pioneer in offering all these features in one place, close to urban centers and in accordance with the
economic reality of the market.
12

13. Own Building Team
More than 4,500 exclusive workers assuring quality, commitment, efficiency and cost control
A KEY COMPETITIVE ADVANTAGE
Independence
Direcional does not depend on contractor´s workforce
Cost Reductions
Lower labor risks and higher productivity
Higher Quality
Better quality control, reducing maintenance levels
All employes are booked in Direcional s payroll
§ Reduction of labor risks
Constant training programs/ Standardization
§ Experienced workers = teachers
§ Processes standardization
Constant performance evaluation
§ Clear and objective task assessment
§ Monitoring and training of low-productive workers
§ Rework almost inexistent
Performance Based Compensation
§ Linked to targets
§ Lower turnover
13

14. Standardized Process
STANDARDIZED BUILDING PROCESS
Leads to:
§ Waste reduction
§ Low rework levels
§ Higher efficiency per worker
It also contributes to:
§ Higher building quality/control
§ Easy identification and
correction of building problems
Embedded electric
fittings that minimize
the need of cutting
walls
STANDARDIZATION EXAMPLES
Concrete blocks
produced in jobsite pre-
molding station
Standardized processes instead of standardized projects
„ Direcional adopts similar procedures in all its construction sites
„ Standardized processes diminishes wastes and post-sales issues
„ Problems in previous projects can be avoided in the new ones and general solutions can be created and shared among teams
14

15. AgreBrookfield
CCDI
Cyrela
Even
Gafisa
Helbor
Inpar
MRV
PDG
Rodobens
Rossi
Tecnisa
Trisul
0%
5%
10%
15%
20%
25%
30%
50 100 150 200 250 300 350
NETMARGIN1Q10(%)
AVERAGE UNIT SELLING PRICE (R$'000)
Cash Flow Cycle
Land
Acquisition
Sales
Speed
Cash
Collection
Austere
Budget
Client
Financing
Construction
Financing
Cash Flow Highest Results in the Sector
DirecionalDirecional
Sector sAverageSector sAverage
ANNUALIZED ROE
22.2%
12.3%
29.7%
21.6%
EBITDA MARGIN
15
Efficient Cash
Flow
Management
26.3%
15.1%
NET MARGIN
Source: Companies Reports 1Q/2010

16. MCMV Program
High Growth Potential
MCMV Program
High Growth Potential
Minha Casa, Minha Vida
My Home, My Life
16

17. Minha Casa, Minha Vida Program
Range of family wages
(in minimum wages MW)
Number of
houses
0 to 3 400,000
3 to 4 200,000
4 to 5 100,000
5 to 6 100,000
6 to 10 200,000
Resources Distribution
per Region
Southeast 37%
Northeast 34%
South 12%
North 10%
Center-west 7%
City Value
Cities with more than one million inhabitants or State Capitals R$ 130 thousand
Cities with more than 500,000 people R$ 100 thousand
Other cities R$ 80 thousand
The home to be financed can have the maximum price of:
In partnership with States, Cities and Private companies, the Brazilian Federal Goverment launched in 2009 a
program aiming to built one million houses for low-income families (wages range up to 10 minimum Brazilian
wages). Program s fund reaches R$ 34 BN:
17

18. High Growth Potential
with Low Competition
Direcional will Fully Benefit from the
MCMV Program
DIRECIONAL IS WELL POSITIONED TO BENEFIT FROM THE PROGRAM S DECENTRALIZED DECISION PROCESS
10.3%
34.3%
36.4%
7.0%
12.0%
MCMV Phase 1:
One million houses to be built
% of units
per region
Decentralized
Process
Decentralized
Process
Regional
Approach
Regional
Approach
Simplified
Approval
Simplified
Approval
Limited
Competition
Limited
Competition
PipelinePipeline
§ Caixa Econômica Federal ( CEF ) has a
decentralized approval process
§ Long lasting relationship with CEF
§ The MCMV program has regional quotas
§ Direcional s has strong experience and
knowledge of the approval process
§ Limited competition from well
capitalized companies in these regions
§ 78% of the pipeline is eligible to MCMV,
around 47.7 thousand units
18

19. § In the 1Q10, the Federal Government announced its intention to continue with the program My House, My Life
(Minha Casa, Minha Vida - MCMV), allocating an additional R$ 72 billion in subsidies to build two million housing
units by 2014.
§ The announcement demonstrates a strong commitment to reducing the housing deficit in the country, especially
for the poorest portion of the population. About 60% of units constructed must be targeted to families with
incomes of up to three minimum wages.
Subsidies: R$ 72 billion (up to 2014)
Units: 2 million
MCMV 1st PHASE MCMV 2nd PHASE
Subsidies: R$ 34 billion
Units: 1 million
00--3 mw3 mw
60%60%
33--6 mw6 mw
30%30%
66--10 mw10 mw
10%10%
00--3 mw3 mw
40%40%
33--6 mw6 mw
40%40%
66--10 mw10 mw
20%20%
BENEFITS BREAKDOWN BY INCOME BRACKETS
MCMV 2nd Phase
19

20. O-3 Minimum Wage Projects
§ Direcional is currently analyzing projects for the construction of 28.0 thousand residential units in this segment,
which is the focus of the second phase of Minha Casa, Minha Vida Program.
§ To operate profitably in this income range of the program, we believe it is essential to have an integrated
constructive process with full control over activities, processes and costs. In the projects under construction, which
amounted to 3.6 thousand units in 1Q10, we are achieving very positive results:
OZIAS MONTEIRO PROJECT
2Q09
R$ 33.9 millions
R$ 42,345
R$ 1,086
800
Launch
Total PSV
Price (R$/unit)
Price (R$/sq.m).
# Units
Manaus AMLocation
Accumulated Results up to 03/31/2010 - R$'000
Revenues from Services 16,760
Deductions from Gross Revenues (549)
Net Revenues 16,212
Cost of services (12,312)
Gross Profit 3,899
% Gross Margin 24.1%
Operating revenues (expenses): 14
Tax Expenses (5)
Financial Expenses (13)
Financial Revenues 32
EBT (Earnings Before Tax) 3,913
Income Tax Provision (26)
Deferred Income Tax (IRPJ) (21)
Deferred Social Contribution (CSLL) (11)
Net Income 3,855
% Net Margin 23.8%
20

21. Operating and Financial Highlights
Operating Data
Financial Performance
Operating Data
Financial Performance
21

22. Operating Highlights
4
25
23
19
2006 2007 2008 2009
Number of Projects
652
2,227
5,359
9,360
2006 2007 2008 2009
Launched Units
80.1
127.3
441.2
660.7
2006 2007 2008 2009
Contracted Sales
66.7
175.9
710.3
783.3
2006 2007 2008 2009
Launched PSV
CAGR=
95%
CAGR=
85%
CAGR=
69%
R$ million R$ million
22

23. 63,4
102,3
263,2
377,6
2006 2007 2008 2009
15,2 21,5
64,4
85,1
2006 2007 2008 2009
21,9
36,2
106,6
127,3
2006 2007 2008 2009
16,7 27,3
78,3
105,8
2006 2007 2008 2009
Financial Performance
R$ million R$ million
R$ million R$ million
Net Revenues Gross Profit
Net IncomeEBITDA
CAGR=
55%
CAGR=
56%
CAGR=
54%
CAGR=
59%
26.4%
26.7%
29.7%
28,0%
34,6%
35,4%
40,5% 33,7%
24,0%
21,1%
24,5%
22,5%
23

24. Appendix
Operating Data
Sales Speed
Inventories
Financial Highlights
Balance Sheet
Operating Data
Sales Speed
Inventories
Financial Highlights
Balance Sheet
24

25. Operating Data
§ 1,266 units were launched in 1Q10, totaling a PSV of R$ 168.4 million (R$ 141.1 million % Direcional)
§ Launches were concentrated in popular projects, in the North and Midwest regions (97.8% of units)
25
1Q09 4Q09 1Q10 Chg. % Chg. %
(a) (b) (c) (c/a) (c/b)
Launches
Launched PSV (R$'000) 100.594 89.712 168.429 67,4% 87,7%
Launched PSV - % Direcional (R$'000) 91.991 80.922 141.114 53,4% 74,4%
% Average Direcional 91,4% 90,2% 83,8% -7,7 p.p. -6,4 p.p.
Units Launched 966 868 1.266 31,1% 45,9%
Average Price (R$/unit) 104.135 103.354 133.040 27,8% 28,7%
Sales
Contratcted PSV (R$'000) 118.406 161.428 202.875 71,3% 25,7%
Contracted PSV - % Direcional (R$'000) 90.068 137.264 163.886 82,0% 19,4%
Units 724 1.106 1.309 80,8% 18,4%
Average Price (R$/unit) 163.544 145.956 154.985 -5,2% 6,2%
VSO (Sales over total supply) 21,0% 22,1% 32,2%
§ In 1Q10 we sold 1,309 units with total PSV of R$ 202.9 million (R$ 163.9 million % Direcional)
§ Sales Over Total Supply of 32.2% in the 1Q10.

26. Sales Speed
VSO (Sales over total supply*)
* VSO = Sales / (initial stock + launches)
Sales Speed
26
20,7%
44,2%
45,1%
22,1%
32,2%
1Q09 2Q09 3Q09 4Q09 1Q10
17%
58%
59%
14%
17%
24%
13%
11%
38%
17%
7%
5%
10%
9%
7%1Q09
2Q09
3Q09
4Q09
1Q10
3M 6M 9M 12M 15M
52%
75%
86%
74%
§ Sales over total supply (VSO) reached 32.2% in the 1Q10:

27. Inventory
27
§ Direcional closed 1Q10 with 4,030 units in stock, whose market value totals R$ 712.9 million (R$ 549.1 million %
Direcional) . Units from finished projects amounts 188 with a PSV of R$ 37.4 million.
§ The projects under construction already have, on average, 76.0% of their units sold.
Inventories at Market Value in 03/31/2010
PSV in Inventory (R$'000)
Units in Inventory
% Units in
InventoryTotal % Direcional
Under Construction Projects 675,519 533,237 3,842 24.0%
Launches 1Q10 135,691 116,521 1,028 82.6%
Launches 4Q09 44,743 40,596 416 47.9%
Launches 3Q09 229,563 164,404 1,115 25.9%
Launches 2Q09 57,958 52,536 418 14.1%
Launches 1Q09 35,372 30,859 244 25.7%
Launches 4Q08 94,142 69,320 365 29.8%
Launches 3Q08 38,619 30,532 147 9.7%
Launches 2Q08 12,506 9,217 50 4.0%
Launches 1Q08 15,543 13,688 35 3.2%
Previous launches 11,381 5,564 24 4.2%
Finished Projects 37,400 15,835 188 5.0%
Total Inventory 712,919 549,072 4,030

28. Financial Data
In 1Q10 net revenues reached R$ 142.7 million, an increase of 119.7% YOY:
28
1Q09 4Q09 1Q10 Chg. % Chg. %
(a) (b) (c) (c/a) (c/b)
Financial Indicators
Net revenue (R$'000) 64.979 115.615 142.739 119,7% 23,5%
Gross Income (R$'000) 21.902 40.445 50.049 128,5% 23,7%
Gross Margin 33,7% 35,0% 35,1% 1,4 p.p. 0,1 p.p.
Adjusted EBITDA (R$'000) 18.124 30.969 42.368 133,8% 36,8%
Adjusted EBITDA Margin 27,9% 26,8% 29,7% 1,8 p.p. 2,9 p.p.
Adjusted Net Income (R$'000) 14.713 25.102 37.469 154,7% 49,3%
Adjusted net Margin 22,6% 21,7% 26,3% 3,7 p.p. 4,6 p.p.
Other Indicators
Annualized ROE 1
18,7% 19,2% 22,2%
ROE LTM 2
24,7% 19,8% 20,6%
Cash and Cash Equivalent (R$'000) 52.514 313.881 292.019
Total Debt (R$'000) 64.018 123.298 142.672
Net Debt (R$'000) 11.504 -190.583 -149.347
Shareholder's Equity (R$'000) 322.251 656.413 694.609
Net Debt / Shareholder's Equity 3,6% -29,0% -21,5%
Net Debt / EBITDA last 12 months 0,1x -1,8x -1,1x
Revenues to be Rocognized (R$'000) 369.396 579.201 623.125
Results to be Recognized (R$'000) 164.226 238.816 250.202
Margin to be Recognized 44,5% 41,2% 40,2%
Inventories (R$'000) 566.665 686.810 712.919
Total LandBank (R$'000) 6.888.900 6.949.611 7.485.173
LandBank - % Direcional (R$'000) 4.600.000 4.697.450 5.188.112
LandBank - Units 56.319 57.522 61.194
1. Annualized ROE: Annualized Net Income in the quarter / Average Equity
2. ROE LTM: Last 12 months net income / Average Equity last 12 Months

29. Balance Sheet
Cash Position 1Q09 4Q09 1Q10 Chg. % Chg. %
(R$ 000) (a) (b) (c) (c/a) (c/b)
Loans and Financing 64,018 123,298 142,672 122.9% 15.7%
SFH 64,018 121,165 138,545 116.4% 14.3%
FINAME and Others - 2,133 4,127 - 93.5%
Cash and Cash Equivalents 52,514 313,881 292,019 456.1% -7.0%
Net debt 11,504 -190,583 -149,347 -1398.2% -21.6%
Net Debt / Shareholder's Equity 3.6% -29.0% -21.5% -25.1 p.p. 7.5 p.p.
Amortization Schedule (R$ MN) Cash Burn (R$ MN)
12.9
44.7
28.2 26.6
14.5
25.3
22.5
32.7
41.2
1T08 2T08 3T08 4T08 1T09 2T09 3T09 4T09 1T10
67.2
58.9
16.6
2010 2011 + 2012 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
29

30. Results To Be Recognized
30
Results to be Recognized (R$ 000)
1Q09 4Q09 1Q10 Var. % Var. %
(a) (b) (c) (c/a) c/b)
Deferred Revenues 369,397 579,201 623,125 68.7% 7.6%
Deferred Costs -205,171 -340,385 -372,923 81.8% 9.6%
Deferred Results 164,226 238,816 250,202 52.4% 4.8%
Margin 44.5% 41.2% 40.2% - 4.3 p.p. - 1.1 p.p.
57.0%
35.2%
7.8%
2010 2011 2012+
Recognition Schedule

31. 31
Investor Relations Department
Daniel Amaral
CFO | IR Officer
Paulo Tropia
IR Analyst
Lucas Bousas
IR Analyst
Contact
www.direcional.com.br
ri@direcional.com.br
(55 31) 3235-4607
(55 31) 3241-1502