2. 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 or that 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. Forward-looking 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.
3. Gafisa Segment
▲ Gafisa’s consolidated launches totaled R$353.9 million in 1Q14, up 326% q-o-q;
▲ Consolidated pre-sales totaled R$187.5 million in 1Q14, an increase of 85% y-o-y;
▲ Adjusted gross profit in the period was R$116.5 million and adjusted gross margin rose to
35.7% from 29.9% in 1Q13;
▲ Adjusted EBITDA was R$54.8 million in 1Q14, above the R$45.0 million registered in 1Q13,
while the EBITDA margin reached 16.8% from 12.2% in 1Q13;
▲ In 1Q14 Gafisa’s net loss was R$2.3 million. Excluding the AUSA equity pick-up, the
segment’s net income was R$1.1 million compared to a loss of R$49.9 million in 1Q13.
1Q14 Results
3
4. Gafisa Segment
1Q14 4Q13 Q/Q(%) 1Q13 Y/Y(%)
Launches 353,934 679,154 -47,9% 83,029 323,6%
Pre-sales 187,555 454,457 -58,7% 101,116 85,5%
Pre-sales of launches 37,915 264,049 -85,6% 11,696 224,2%
Sales over Supply (SoS) 7.9% 17.8% -55,6% 5.0% 58,0%
Delivered projects. units 524 1,249 -58,0% 86 509,3%
Net Revenue 326,750 489,853 -33,3% 367,285 -11,0%
Adjusted Gross Profit 116.530 205.660 -43,4%
109.843
6,1%
Adjusted Gross Margin¹ 35,7% 42,0% -630bps 29,9% 580bps
Adjusted EBITDA ² 54,810 125,177 -56.2% 44,970 21.9%
Adjusted EBITDA Margin ² 16.8% 25.6% -880bps 12.2% 460bps
Net Income (Loss) (2,331) 908,827 - (11.621) -
(R$ 000 and % Gafisa, except where otherwise stated)
1) Adjusted by capitalized interests
2) Adjusted by expenses with stock option plans (non-cash). Minority, and AUSA equity
Operational and Financial Highlights
4
5. 80% 82%
95% 95%
20% 18%
5% 5%
2011 2012 2013 1T14
SP+Rio Outros Mercados
Gafisa Segment
227
546
114
814
101
217
107
679
354
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
SP + RJ
Launches by Market (1Q12-1Q14) Gross Sales by Market (1Q12-1Q14)
340
520
453
544
244
291
221
453
235
27
55 46 56 48 63
41 55
33
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
SP + RJ Other Markets
▲ Launches and sales
focused on core markets
▲ Ongoing evolution
of adjusted gross margin.
Reached 35.7% , and almost
37% in SP and RJ markets; Gross Margin by Market (2011-1Q14) Net Revenue by Market (2011-1Q14)
▲ Operating cash generation
of R$99.1 million in the 1Q14.
-80%
-60%
-40%
-20%
0%
20%
40%
60%
SP + RJ Outros Mercados
Increased gross margin and strong cash generation
Other markets
Other markets
1Q14
5
6. Tenda Segment
▲ Tenda’s consolidated launches totaled R$181.4 million across 4 developments, up 60%
compared to 1Q13;
▲ Pre-sales totaled R$51.8 million in 1Q14;
▲ Adjusted gross profit in the period was R$15.6 million with a margin of 14.7%, above the
adjusted gross result of R$1.9 million and a margin of 1.3% in 1Q13;
▲ Adjusted EBITDA was negative R$24.9 million in 1Q14 with margin of 23.5%, compared to
18.2% in 1Q13;
▲ Net loss was R$37.5 million in 1Q14, compared to R$ 43.9 million in 1Q13;
1Q14 Results
6
8. Tenda Segment
Gross Sales (1Q12-1Q14)
0 0 0 0
14
57 60
84 92
249
345
294 288
226
271
224
154 153
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
New Projetcts Legacy Projects
▲ Operational control and
reliable New Business Model;
▲ Higher level of revenues
derived from New Projects,
allowing a gradual recovery in
Tenda’s profitability; Gross Margin (1Q12-1Q14) Net Revenues by Model (2011-1Q14)
New projects gaining greater relevance
▲ Operating cash
generation of R$8.2 million
in the 1Q14.
6%
20%
16%
5%
-7.0%
7%
4%
22%
8.0%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
114
33
104
88
181
1Q13 2Q13 3Q13 4Q13 1Q14
0%
10%
55%
100%
90%
45%
2012 2013 1Q14
New Projects Legacy
Launches of New Projects (1Q12-1Q14)
8
9. Launches – New Model
Main indicators of new projects
Launches performing well to date, based on small volumes Speed up launches
Novo
Horizonte
SP
Vila
Cantuária
BA
Itaim Paulista
SP
Verde Vida
F1
BA
Jaraguá
SP
Viva Mais
RJ
Ch. Campo
Limpo
SP
Verde Vida
F2
BA
Parque Rio
Maravilha
RJ
Renacença
Candeias
PE
Launch Date Mar/13 Mar/13 May/13 Jul13 Aug/13 Nov/13 Dec/13 Jan/14 Mar/13 Mar/13
Units 580 440 240 340 260 300 300 340 440 432
Total PSV (R$ 000) R$ 65,145 R$ 45,903 R$ 31,220 R$ 38,563 R$ 40,842 R$ 39,713 R$ 48,000 R$ 42,405 R$63,814 R$ 57,024
Sales 577 341 195 261 232 96 127 43 55 52
% Sales 99% 78% 82% 77% 89% 32% 42% 13% 13% 12%
Average SoS
(Month)
7.6% 6% 7.5% 8.6% 11.1% 6.4% 10.5% 4.3% 12.3% 12.0%
Transfers 565 178 162 218 215 55 100 3 0 0
% Transfers 98% 52% 83% 84% 93% 57% 79% 7% 0% 0%
Construction 89% 86% 72% 17% 2% 12% 0% 0% 0% 0%
9
10. Consolidated Results
1Q14 4Q13 Q/Q(%) 1Q13 Y/Y(%)
Launches 535,379 767,534 -30.2% 196,725 172.1%
Pre-sales 239,323 618,083 -61.3% 107,901 121.8%
Pre-sales of launches 58,171 338,636 -82.8% 25,352 129.5%
Sales over Supply (SoS) 7.5% 18.5% -59.5% 3.9% 92.3%
Delivered projects. units 1,796 4,597 -60.9% 881 103.9%
Net Revenue 432,701 704,750 -38.6% 507,550 -14.7%
Adjusted Gross Profit 132.093 266.874 -50,5% 111.739 18,2%
Adjusted Gross Margin¹ 30,5% 37,9% -740 bps 22,0% 850 bps
Adjusted EBITDA ² 26,470 138,939 -80.9% 55,769 -54.2%
Adjusted EBITDA Margin ² 6.1% 19.7% -1360bps 11.4% -830bps
Net Income (Loss) (39,791) 921,284 - (55,473) -
Operational and Financial Highlights
(R$ 000 and % Gafisa, except where otherwise stated)
1) Adjusted by capitalized interests
2) Adjusted by expenses with stock option plans (non-cash). minority , 4Q13 does not consider AUSA transaction results
10
11. 44%
30% 25%
7%
56%
70% 75%
93%
Until Mar/15 Until Mar/16 Until Mar/17 Until Mar/18
Corporate debt Project debt
2.967
985
24
474
1.011
473
Total
Investor`s obligations
Working Capital
SFH Projects Financing
Debentures Working Capital
Debentures FGTS
Net Debt/ Equity 1.26x
9.54% - 10.09% (TR)
1.50% - 1.95%+CDI
8.30% - 11.50%+TR
0.235% -
0.82%+CDI/IGPM+7.25%
Indebtedness and Leverage
0.36x
1.30% - 3.04%+CDI
1.162 1.074 435 273
R$
Average cost – 10.8%
0.45x
Net Debt / Equity of 44.9%
1Q14 Leverage Post Transaction Indebtedness (R$ mm)
Debt Maturity as % of Total Debt
126%
36%
45%
252
947
1,2
(130.2)
(55.2)
(63.6)
3Q13 Reversion Equity Var Cash Var 4Q13 JCP Programa de
Recompra
Imposto
AUSA
1Q14
Cash Generation of
R$20.5M in 1Q14
▲ (i) payment of interest on own capital in the amount of R$130.2 million;
▲ (ii) R$55.2 million disbursed in the Company`s share buyback program;
▲ (iii) R$63.6 million for tax payment from Alphaville`s stake sale operation.
11
12. Recent Events
General
Shareholders’
Meeting
Dividend Program
and Share
Buyback Program
Separation of
Business Units
Approval of the Board of
Directors to analyze a possible
separation;
Enhancement of value creation
capacity for both business units;
In this 1Q14, we took the first
steps toward administrative and
back office separation;
Appointment of Gafisa and
Tenda CEOs.
Interest on own capital in the
amount of R$130M with payment
effective as of February 12, 2014;
Approval of supplementary dividend
distribution of approximately
R$32M;
The share buyback program in effect
had already acquired 23 million
shares at the end of March,
approximately 71% of the total
allowed amount.
Election of new members for
the Board of Directors and the
Fiscal Council;
Approval of supplementary
dividend distribution of
approximately R$32.9M;
Establishment of up to R$13.4M
in total compensation to be paid
to the Company’s management
for the fiscal year 2014.
Preliminary studies and first steps
12
13. Separation Process – Updated Status
In this first stage, we highlight the following items:
▲ Definition of segregated corporate structures for Gafisa and Tenda;
▲ Assessment, understanding, sizing and necessary adjustments to processes and systems for
separation of areas;
▲ Definition of the separation strategy, workforce, separation schedule for different areas, and
major milestones on the process.
The Company continues to analyze the separation process, assessing issues relating to capital
structure, liquidity, and fiscal, tax, legal, corporate aspects, among others.
As previously announced, with the completion of the turnaround process and in line with the
intention of separating the Gafisa and Tenda business units, Duilio Calciolari announced his intention
to leave the company, after 14 years of dedicated service to Gafisa. Therefore, on May 5th, Sandro
Gamba was named the new CEO of the Company.
Andre Bergstein remains Chief Financial Officer and Rodrigo Osmo the CEO for Tenda.
Preliminary studies and first steps
13
