1Q101Q101Q101Q10May 13, 20101Q101Q10

May 13, 2010 1Q101Q10

1Q10 Operating Highlightsp g g g

Operating HighlightsOperating HighlightsCOO | Ricardo Ribeiro

G t H i P “Mi h C Mi h Vid ” Government Housing Program: “Minha Casa, Minha Vida” Launches SalesSales Land Bank Inventory

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“Minha Casa, Minha Vida” ProgramMinha Casa, Minha Vida Program

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(Minha Casa, Minha Vida - MCMV), allocating an additional R$ 72 billion in subsidies to build two million housingunits by 2014. The announcement demonstrates a strong commitment to reducing the housing deficit in the country, especiallyfor the poorest portion of the population. About 60% of units constructed must be targeted to families withincomes of up to three minimum wages.

BENEFITS BREAKDOWN BY INCOME BRACKETS

MCMV – 1st PHASE MCMV – 2nd PHASE

66‐‐10 mw10 mw10%10%66‐‐10 mw10 mw

00‐‐3 mw3 mw60%60%

33‐‐6 mw6 mw30%30%

10%10%00‐‐3 mw3 mw40%40%

33‐‐6 mw6 mw

20%20%

Subsidies: R$ 72 billion (up to 2014)Subsidies: R$ 34 billion

40%40%

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Units: 2 millionUnits: 1 million

O-3 Minimum Wage ProjectsO 3 Minimum Wage Projects To operate profitably in this income range of the program, we believe it is essential to have a constructive processintegrated with full control over activities, processes and costs. In the projects under construction, which amountedintegrated with full control over activities, processes and costs. In the projects under construction, which amountedto 3.6 thousand units in 1Q10, we are achieving very positive results:

OZIAS MONTEIRO PROJECT

Accumulated Results up to 03/31/2010 - R$'000Revenues 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)

2Q09

R$ 33.9 millions

Launch

Total PSV

Manaus – AM LocationTax Expenses (5)Financial Expenses (13)Financial Revenues 32 

EBT (Earnings Before Tax) 3,913 Income Tax Provision (26)

R$ 42,345

R$  1,086

800

Price  (R$/unit)

Price (R$/sq.m).

# Units Deferred Income Tax (IRPJ) (21)Deferred Social Contribution (CSLL) (11)

Net Income 3,855 % Net Margin 23.8%

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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.

LaunchesLaunches 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)

Launches (R$ MN)

27.3 +67%

100.6 89

168.4

p p p j , g ( )

92.0 80.9 141.1

8.6 8.8

100.6 89.7

Launched Units Launches by Segment Geographic Dispersion

1Q09 4Q09 1Q10Direcional Partners

Launches by Segment Geographic Dispersion

+31%43.5% 24.5%

2.2%

100 0% 100 0%

2.2%

966 868 1,266

1Q09 4Q09 1Q10 1T09 4T09 1T10

100.0%56.5% 73.3%

1T09 4T09 1T10

100.0% 100.0% 97.8%

1Q09 4Q09 1Q10 1Q09 4Q09 1Q10

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1Q09 4Q09 1Q10 1T09 4T09 1T10Norte Centro-oeste Sudeste

1T09 4T09 1T10

Popular Média-alta

1Q09 4Q09 1Q10 1Q09 4Q09 1Q10Upper Middle North Midwest Southeast

SalesSales 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.

Contracted Sales (R$ MN)Sales Over Total Supply of 32.2% in the 1Q10.

+82%

161 4202.9

90.2 137.3 163.9 28.2 24.2

39.0 118.4161.4

1Q09 4Q09 1Q10Direcional Partners

S l b S t G hi Di i Sales Over Total SupplySales by Segment Geographic Dispersion

27.1% 19.5% 17.7%7.2% 9.7% 5.5%

4.0% 28.1% 34.6%15.1% 7.7% 7.7%

44.2% 45.1%

Sales Over Total Supply

65.7% 70.8% 76.8% 80.9% 64.2% 57.7% 20.7% 22.1%32.2%

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1T09 4T09 1T10Popular Média Média - Alta

1T09 4T09 1T10Norte Centro-oeste Sudeste

1Q09 4Q09 1Q101Q09 4Q09 1Q10North Midwest SoutheastMedium Upper Middle

1T09 2T09 3T09 4T09 1T101Q09 4Q09 1Q102Q09 3Q09

Land BankLand Bank 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 swapLand Bank average cost of 7.7% of estimated PSV and 71.9% acquired through swap

Land Bank Composition Large Scale Projects

AMPA Project Status Total units Units to be

l h dPSV (R$ MN) to

b l h

RO

MG

RO

PA

DF

j S launched 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 94% of PSV

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 1,034 752 126.8PSV Breakdown per Segment

Média‐alta1 1%Popular

Comercial0.8%

Dream Park ES Under Construction 1,034 752 126.8Eliza Miranda AM Under Construction 2,112 128 19.7

Cachoeiras do Madeira RO Under Construction 1,278 426 75.4Águas Claras DF Launching in 1H11 1,148 1,148 400.2

Granjas Werneck MG Launching in 2H11 15,000 15,000 1.500.0

Commercial

Upper Middle1.1%

Médio18.3%

Popular79.9%

j gFloramar 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

Medium

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“MINHA CASA, MINHA VIDA”47.731 units elegible program

78.0% of total land bank87,1% of the units comprise large scale projects

17.614 units ready to be launched

Total 62,638 53,319 6,022.2

InventoryInventory

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 inInventoryTotal % 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%

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Total Inventory 712,919  549,072  4,030 

1Q10 Financial Highlightsg g

Financial HighlightsFinancial HighlightsCFO | Daniel Amaral

Fi i l R lt Financial Results Balance Sheet | Cash Position Results to be RecognizedResults to be Recognized

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Financial Results

Net Revenue (R$ MN)

Financial Results

115.6

142.7

+ 120%

65.0

115.6

Gross Profit and Gross Margin (R$ MN)

1T09 4T09 1T101Q09 4Q09 1Q10

40 4

50.0

g ( )+ 129%

21.9

40.433.7% 35.0% 35.1%

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1T09 4T09 1T10Lucro Bruto (R$ MM) Margem Bruta (%)

1Q09 4Q09 1Q10Gross Profit Gross Margin

Financial Results – Cont. Financial Results Cont.

Sales Expenses (R$ MN) Adjusted G&A¹ (R$ MN)

2 8

4.3 3.98.7  8.4 

2.8

1T09 4T09 1T10

3.4 

1T09 4T09 1T101Q09 4Q09 1Q10 1Q09 4Q09 1Q10

4.3%3.7% 5.2%

7.5%5.9%5.4%4 1%2.8%

2.4% 2.7%1.9%

2.8%4.1%

1T09 4T09 1T10

% Revenues % Total Sales

1T09 4T09 1T10

% Revenues % Total Sales

1Q09 4Q09 1Q10 1Q09 4Q09 1Q10

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1. Adjusted for expenses (non‐cash) with the Stock‐OptionProgram of R$ 1.8 million recognized in the period.

Financial Results – Cont. Adjusted Ebitda and Adjusted Ebitda Margin

Financial Results Cont.

31.0

42.4+ 134%

18.1

27.9% 26.8% 29.7%

1Q09 4Q09 1Q101T09 4T09 1T10

Ebitda ajustado (R$ MM) Margem Ebitda ajustada (%)

Adjusted Net Income and Adjusted Net Margin

AdjustedEBITDA EBITDA Margin

1Q09 4Q09 1Q10

Adjusted Net Income and Adjusted Net Margin

37.5

+ 155%

14 7

25.1

22.6% 21.7% 26.3%

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14.7

1T09 4T09 1T10Lucro Líquido ajustado (R$ MM) Margem Líquida ajustada (%)

1Q09 4Q09 1Q10AdjustedNet Income AdjustedNet Margin

Balance SheetBalance Sheet

Cash Position 1Q09 4Q09 1Q10 Chg. % Chg. %Q Q Q g g(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%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%N D b / Sh h ld ' E i 3 6% 29 0% 21 5% 2 1Net 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)Amortization Schedule (R$ MN) Cash Burn (R$ MN)

44.741.2

12.9

28.2 26.6

14.5

25.3 22.5

32.7

67.2 58.9

16 6

13

1T08 2T08 3T08 4T08 1T09 2T09 3T09 4T09 1T10

16.6

2010 2011 + 2012 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

Results To Be RecognizedResults To Be Recognized

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 Revenues 369,397 579,201 623,125

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%

Recognition Schedule

57.0%

35.2%

7.8%

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2010 2011 2012+

DisclaimerDisclaimer

This presentation contains certain forward-looking statements concerning the business prospectsThis presentation contains certain forward looking statements concerning the business prospects,projections of operating and financial results and growth potential of the Company, which are based onmanagement’s current expectations and estimates of the future performance of the Company. Although theCompany believes such forward-looking statements are based on reasonable assumptions, it can give noassurance that its expectations will be achieved. Expectations and estimates that are based on the futureprospects of the Company are highly dependent upon market behavior, Brazil’s political and economicsituation, existing and future regulations of the industry and international markets and, therefore, aresubject to changes outside the Company’s and management’s control The Company undertakes nosubject to changes outside the Company s and management s control. The Company undertakes noobligation to update any information contained herein or to revise any forward-looking statement as a resultof new information, future events or other information.

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ContactContact

Investor Relations Department

Daniel AmaralCFO | IR Officer

Paulo TropiaIR Analyst

Lucas BousasIR Analyst

www.direcional.com.brri@direcional com br

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ri@direcional.com.br

(55 31) 3235-4607(55 31) 3241-1502