Corporate Presentation - January 2009

1. Grand Life Saúde
São Paulo - SP
Launched in Sep, 2005
Delivered in Oct, 2008
100% sold
Company Presentation
January 2009 1

2. Agenda
Sector Review
Company Highlights
Financial Information
Appendix
2

3. Sector Review
Floris Bosque Residencial
São Paulo - SP
Launched in August, 2008
90% sold until September, 2008 3

4. Ja
n
M -0 Apr-00
ay 0
Se -00 Aug-00
Apr-00
13.3
p
Jan-00
Ja -00 Dec-00
n
M -0 Apr-01
11.2
ay 1
12.5 Mar-01
Se -01
p Aug-01
Ja -01 Dec-01
n
M -0
ay 2 Apr-02
Se -02
p Aug-02
Jun-02
Ja -02
Source: SINDUSCON-RS
n Dec-02
17.8
M -0
May-02
Source: SECOVI-SP/EMBRAESP
ay 3 Apr-03
11.9
14.0 Mar-03
Se -03
p Aug-03
Ja -03
n Dec-03
M -0
ay 4
Se -04 Apr-04
p Aug-04
24.1
14.1
Jul-04
Ja -04
Feb-04
n Dec-04
M -0
ay 5
Se -05 Apr-05
p
Aug-05
São Paulo
Ja -05
n
M -0 Dec-05
Porto Alegre
ay 6
Apr-06
10.0
Se -06
p
Mar-06
22.5
Ja -06 Aug-06
Feb-06
n
M -0 Dec-06
Demand in Expansion
ay 7
Se -07 Apr-07
Supply to Sales - 12 month curve in units
Supply to Sales - 12 month curve in units
6.8
16.7
p
Jul-06
Apr-07
Ja -07
n Aug-07
M -0
Dec-07
7.2
ay 8
Sep-07
Se -08
Apr-08
4.5
p-
08
Aug-08
6.5
Aug-08
Sep-08
Ja
Apn-0 Jul-04
0
14.7
Sep-04
Jul-04
Jur-0
O l-00
20.5
c Nov-04
Jan-00
Ja t-00
Apn-00 Jan-05
1
16.1
Jur-0 Mar-05
15.2
Feb-05
O l-01
Nov-00
Source: ADEMI-RJ
c May-05
Ja t-01
Apn-01
2 Jul-05
Jur-0
O l-02 Sep-05
ct 2
18.9
24.9
Ja -0 Nov-05
Oct-05
Apr-02
Apn-02
3 Jan-06
Jur-0
Source: SINDUSCON-CE/FIEC
O l-03 Mar-06
12.1
c
Jan-06
Ja t-03
Apn-03 May-06
4
17.0
Jur-0 Jul-06
Sep-03
9.4
O l-04
c Sep-06
Aug-06
Ja t-04
Apn-04 Nov-06
5
Jur-0 Jan-07
O l-05
Fortaleza
c
25.1
Ja t-05 Mar-07
Mar-05
Apn-05
6 May-07
11.3
Rio de Janeiro
Jur-0
18.6
May-07
O l-06 Jul-07
Oct-05
c
Ja t-06 Sep-07
Apn-06
7
20.7
Jur-0 Nov-07
Aug-06
Supply to Sales - 12 month curve in units
Supply to Sales - 12 month curve in units
O l-07 Jan-08
ct 7
12.3
Ja -0
Feb-08
Mar-08
Aug-07
Apn-07
8
Jur-08 May-08
l-0
8
13.9
Jul-08
Jul-08
11.5
15.8 Aug-08
4

5. Income and Employment
Income Growth Unemployment Rate
Real Overall Wages Avg. Real Income
per capita
2006 = 100 R$
118 1,300 14.0% Unemployment Rate in Metropolitan Regions (30 days)
116 13.0%
114 1,250 12.0%
112 11.0%
110 1,200
10.0%
108
9.0%
106 1,150
8.0%
104
7.0% Dec-08
102 1,100
6.8%
100 6.0%
Feb-02
Apr-02
Jun-02
Aug-02
Aug-03
Oct-02
Dec-02
Feb-03
Apr-03
Jun-03
Oct-03
Dec-03
Feb-04
Apr-04
Jun-04
Aug-04
Oct-04
Dec-04
Feb-05
Apr-05
Jun-05
Aug-05
Oct-05
Dec-05
Feb-06
Apr-06
Jun-06
Aug-06
Oct-06
Dec-06
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
98 1,050
Jun-06 Nov-06 Apr-07 Sep-07 Feb-08 Jul-08 Dec-08
Source: MCM Consultoria and IBGE Source: CAGED
5

6. Mortgage Credit Available
Mortgage Loans Funding (in R$ billion) Mortgage Loans
Record = 627.000 in 1980
39.0 41.8
% 9%
: 42 8e: 1
0 09e 9.0 11.8
03 -2 0 0
3-2 R 20
Contracts (thousands)
CAG
600
0
20 25.2
GR 500
CA 6.9 400
16.3
300
10.4 30.0 30.0
7.0 200
6.9 18.3
5.2 4.6 4.8 5.0 5.5 100
3.3 2.8 3.9 9.3
2.7 3 4.9 0
1.9 1.9 1.8 2.2 3.0
95
96
97
98
99
00
01
02
03
04
05
06
07
e
2000 2001 2002 2003 2004 2005 2006 2007 2008e 2009e
08
19
19
19
19
19
20
20
20
20
20
20
20
20
20
SBPE FGTS SBPE FGTS
Source: ABECIP, Central Bank of Brazil and Secovi Source: ABECIP, Central Bank of Brazil and Banco Real
Mortgage to GDP Ratio
280% 249%
230%
180% 166%
156%
141% 137%
125%
130% 111%
73%
80% 65% 53% 46%
63%
46% 37% 35% 33% 28%
20%
30% 13% 10% 2% 2% 8% 6% 9%17%
-20%
UK
A
ia
il
d
ain
o
ile
ary
a
.
d
s
ep
az
US
xi c
lan
f ric
l an
Ind
nd
Ch
Sp
ng
Br
hR
rla
Me
Po
A
Ire
Hu
ec
th
the
u
Cz
Ne
So
Mortgage credit to GDP Ratio Total Credit to GDP
Source: Central Bank and Bradesco Corretora
6

7. Regulations of Mortgage Availability
Savings Accounts Funding
400
350
R$ Billion
300
250
200
150
100
50
-
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Savings Accounts Mandatory Lending Mortgage Loans
Source: Central Bank and Banco Real
Note: assumptions for the estimates following 2007 are
-stability of savings account s with TR + 6%p.a. remuneration
-mandatory lending at 65% of savings accounts
-mortgage loans growth of 25%p.a. as of 2006-2007 growth
7

8. Low Default Rate for Mortgage
11.0%
9.2% 8.1%
5.9%
3.6% 4.0% 4.0% 3.7% 3.7% *
2.1% 2.4% 2.0%
1.3% 1.4% 1.4% 1.4%
2003 2004 2005 2006 2007 1Q08 2Q08 3Q08
Cyrela 31 days overdue receivables Market Mortgage Loans with > 3 late payments
Source: Cyrela, ACSP, ABECIP and Banco Real
* Market Data of 3Q08 not available – 3Q08 figure refers to 2Q08
Market Mortgage Loans Cyrela’s Receivables
Default as the delay in payment > 90 days Overdue receivables as the delay in payment > 31 days
Default on mortgage loans = 3.7% Overdue receivables 1.4%
Core business 1.6%
Default on general credit lines = 7.3%
Living 0.3%
Default on loans with no collateral = 14.1%
Deliquency rate is close to zero
8

9. Growth of Potential Demand
Market for Units of R$ 110,000 in 2005 and R$ 90,000 in 2008
2005 2008
Monthly Income Monthly Income
Potential Demand:
> R$ 4,800
10% +17.9 mm families
4.7 mm families
> R$1,400
47% 22.6 mm families
From R$1,200 to R$4,800
39% 19.0 mm families
< R$1,200 53% < R$1,400
51% 24.9 mm families 26.0 mm families
TR+14% TR+9%
10 years 30 years
Source: UBS Pactual
9

10. Company
Highlights
Vivae Residencial Clube (Living)
Rio de Janeiro - RJ
Launched in July, 2008
70% sold until September, 2008 10

11. Excellent Track Record of Growth
Launches (in R$ million) Pre - Sales Contracts (in R$ million)
= 55% = 51%
8e C A
GR CAGR
– 200 – 2008e
2004 2004
+85% 5,393 5,250 - 5,600 4,675 - 4,950
+129% 4,392
1,965
1,572
2,917
992 1,915
1,211 3,428 546
972 949 1,023 2,820
207 1,924
272 236 268
1,004 1,369
700 713 755
2004 2005 2006 2007 2008e 2004 2005 2006 2007 2008e
Cyrela Partners Cyrela Partners
Consistent track record of growth in Launches and Pre-sales Contracts
11

12. Launches and Pre-Sales Contracts – in R$ million
Launches Pre-Sales
+64% 3,971 +89% 4,045
1,286 1,352
2,424
-33.1% 2,145
1,574
911 -0.5% 679
652 1,053 2,685 1,058 1,053 2,693
305 355 356
1,513 1,466
922 748 703 697
3Q07 3Q08 9M07 9M08 3Q07 3Q08 9M07 9M08
Cyrela Partners Cyrela Partners
3Q08 Launches – Region 3Q08 Pre-Sales – Income Segment
SP Super Economic 6%
37% RJ
15%
Economic 30%
Middle 18%
Mid-High 26%
Luxury 21%
Expansão
47% 12

13. Sales Speed – in R$ million
Sales Speed of Launches
Seller and Selling sales
4Q07 47% 16% 12% 5% 81% accounted for
R$419.9million in 3Q08
1Q08 47% 30% 0% 77%
It represents 47% of
2Q08 64% 9% 74% sales in the regions
where Seller and
3Q08 39% 39% Selling operate
In 3 months In 6 months In 9 months In 12 months
Inventory in Sep/08 - %CBR 3Q08 Launch Sales
4,587
99.3
538
414
1,265
2,693
152 86.9
1,893 1,053
733 1%
12.4
20% 386
2,685 28% 532
638
39%
1,721
51% 964
Inventory Dec/07 + Sales 9M08 Inventory Sep/08 3Q08 Launches Sales of Launches 3Q08 Inventory
Launches 9M08 3Q08 in 3Q08
1T08
Launches 2008 2007 2006 Previous Years Sales speed
Velocidade de Vendas 13

14. Sales Performance – Residential – Jan/Sep 2008
São Paulo Rio de Janeiro
(R$ million) (R$ million)
13,060 1,453
7,822 2,569
Market Market
Cyrela Cyrela
548 319
1,567 1,202
Launches in SP Pre-Sales in SP Launches in RJ Pre-Sales in RJ
12% 15% 21% 22%
Launches Pre-Sales Launches Pre-Sales
Cyrela’s stakes indicate strong sales performance in the main markets
Source: Cyrela MID - Jan-Sep 2008
14

15. Launches 2004 to 2008 - SP Metropolitan Region
Units Potential Sales Value (R$ million)
58,512
17,422
7,030 50,468
6,162 5,052 13,059
34,345 35,350 19,074 11,274
14,191 9,607
28,782 4,051 4,497
3,688 7,997 3,939 7,326
3,224 8,567 10,129 3,320
5,307 21,524 3,119 4,374
10,269 23,464 3,894
8,937 12,721 3,242
1,977
4,072 3,552
11,314 11,821 10,884 1,803 1,928 2,688
8,449 6,651 1,098 1,117 753 972 636
2004 2005 2006 2007 Jan-Sep 2008 2004 2005 2006 2007 Jan-Sep
2008
Luxury > R$ 3,500/m²
Middle > R$ 2,700/m², <3,500/m²
Economic > R$ 1,900/m², <2,700/m²
Super-Economic < R$ 1,900/m²
Source: Cyrela MID
15

16. Launches 2004 to 2008 - RJ and Region
Units Potential Sales Value (R$ million)
13,350 3,446
2,363 3,147
9,829 2,569
1,272
2,354
7,831 3,885 1,728
7,019 1,729
6,856 989
1,734 883
1,491 3,846 1,353 975
3,666 1,677 2,511
5,800 509
659 690 1,096
1,141 2,680 2,657 980
3,080 273 759
1,142 200 659 350
907 1,171 1,302 1,598 221 203 219
506 69 134
2004 2005 2006 2007 Jan-Sep 2008 2004 2005 2006 2007 Jan-Sep 2008
Luxury > R$ 3,500/m²
Middle > R$ 2,700/m², <3,500/m²
Economic > R$ 1,900/m², <2,700/m²
Super-Economic < R$ 1,900/m²
Source: Cyrela MID
16

17. Sales Performance 9M08 – Residential Buildings
São Paulo – Sales Speed
83%
77% 77% 75% 75%
66%
59% 57% Market
Cyrela
Super- Economic Middle Luxury
economic
Rio de Janeiro – Sales Speed
64% 63% 62%
60% 59%
49%
44%
39%
Market
Cyrela
Super- Economic Middle Luxury
economic
Source: Cyrela MID
17

18. LIVING – Sales Performance
Average Sales Speed
4Q07 50% 14% 14% 7% 84%
1Q08 53% 32% 2% 87%
2Q08 63% 21% 83%
3Q08 41% 41%
In 3 months In 6 months In 9 months In 12 months
18

19. Landbank
PSV: R$34.6 billion South
5.7% São Paulo Capital
North 29.6%
Cyrela's Share: 76% 3.0%
São Paulo
Other cities
81% exchanged Southeast
71.4%
17.3%
Northeast
Rio de Janeiro
11.1 million sq. m. 19.8%
49.7%
Minas Gerais
~126.7 thd units 0.5%
Espírito Santo
3.0%
Income Segment Landbank – Usable Area
(in million of sq.m)
Super 6%
4% +2
Economic
11.1
5%
Economic 25% +3 8.8
7% 6.5
1
Middle 31% +1
3.0
Mid-High 32%
Luxury 8% 2005 2006 2007 9M08
19

20. Financing Capacity - SFH
Availability of financing funds for construction
Credit limit
8.1
R$ billion Agreed
3.1
Amount due: 0.6
Available
5.0
It is possible to launch R$ 3 of Potential Sales Value for each R$ 1 available for
construction financing
It is possible to finance approximately R$ 15 billion in potential sales value with the credit
lines still available, not considering the securitization of receivables
Exemplo:
Land: up to 20%
100% of PSV 80% financed by SFH = 32% of PSV
Construction: 40% 20%: own capital or CEF = 8% of PSV
20

21. Client Debt Transfers
Transfers in 2008: R$ 70 million, 117% higher than 2007
70% are transferred less than 1 month after condominuim
registration
Debt transfers forecast: R$ 200 million in 2009 and R$ 400 million
in 2010
October/2008: First Living client debt transfer (Garden Resort in
Jundiaí – SP)
21

22. Financing by SFH
Up to R$ 350 thousand
per unit
For construction: For the client:
- Amount limited to 80% of the total - Amount limited to 80% of the sale
construction cost or R$ 350 thousand/unit and evaluation value
which can represent PSV of R$ 1 million/unit - Guaranty: deed of trust
- Guaranty: 120% of the amount due - Payment terms up to 30 years
- Payment term up to 4 years after completion
of construction
- All projects can be financed by SFH, taking
into consideration the maximum value of units
22

23. Guidance Revision
(R$ million) 2008 2009
New Previous New Previous
Under
Launches – 100% 5,250 to 5,600 7,000 8,800
Revision
Under
Pre-Sales – 100% 4,675 to 4,950 5,500 7,000
Revision
Under
%CBR 63 to 68% 62 to 67% 63 to 68%
Revision
23

24. Financial
Information
Brisas Altos do Calhau (Living)
São Luis - MA
Launched in August, 2008
75% sold until September, 2008 24

25. Pre-Sales to be Recognized
R$ million 2006 2007 9M08
Sales to be recognized at the beginning of the period 1,020.0 1,577.6 3,201.9
Net sales recorded in the period 1,630.7 3,328.6 3,529.7
Revenues recognized in the period (1,072.8) (1,703.7) (2,016.4)
Sales to be recognized at the end of the period 1,577.6 3,202.0 4,714.8
Cost of units sold to be recognized (923.7) (1,919.0) (2,800.5)
Selling Expenses (36.8) (60.8) (81.8)
Gross profit to be recognized 653.9 1,283.0 1,832.5
Percentage of gross profit 41.4% 40.1% 40.6%
25

26. Financial Results – in R$ million
Net Revenues
1,958.6
+82%
+68% 1,073.6
743.9 695.8
414.8
3Q07 2Q08 3Q08 9M07 9M08
Gross Profit Backlog
43.5% 42.3% 40.5% 40.6%
41.8% 41.5% 40.5% 40.1% 40.2%
40.4%
+125% 4,714.8
812.2 4,425.9
+81%
3,581.1
3,202.0
+63% 449.1
2,099.1
300.4 294.2
180.5
3Q07 2Q08 3Q08 9M07 9M08 9M07 2007 3M08 1H08 9M08
Revenue to be Recog. Gross Mg. To be Recog.
Gross Profit Gross Margin 26

27. Financial Results – in R$ million
EBITDA
26.6% 26.1%
21.9% 21.8% 21.6%
+51% 423.6
+37% 279.9
162.8 151.4
110.4
3Q07 2Q08 3Q08 9M07 9M08
EBITDA EBITDA Margin
Expenses on Pre-Sales Contracts Expenses on Net Revenue
13.6%
7.6%
12.1%
11.3% 11.6%
10.7%
5.6% 5.6%
4.6%
4.2% 4.0%
3.8% 8.9%
8.1% 8.5%
2.8% 2.6%
2.5% 7.2%
6.7%
3Q07 4Q07 1Q08 2Q08 3Q08 3Q07 4Q07 1Q08 2Q08 3Q08
Gen. & Admin. Expenses Selling Expenses Gen. & Admin. Expenses Selling Expenses 27

28. Financial Results – in R$ million
Adjusted Net Income
20.6%
16.0% 14.2%
21.7% 10.4%
+26% 277.4
221.0
-20%
119.2
90.0
72.4
3Q07 2Q08 3Q08 9M07 9M08
Adjusted Net Profit Adjusted Net Margin
Adjustment: net of the appreciation of Agra's shares in 2Q07 and 9M07.
28

29. Accounts Receivable
Accounts Receivable Evolution Remuneration of Receivables
(R$ million)
Finished units: IGP-M + 12%
Under construction: INCC
+115% 6,886
6,366 6,886
498
5,149
4,607
3,206
6,388
1.3% 1.3% 1.4% 1.4% 1.4%
2,801
9M07 2007 3M08 1H08 9M08
Receivables 31-days overdue Receivables
Finished units
Units under construction
Schedule of Receivables Construction Cost to be Realized
(R$ million)
1,372
1,187
845 917
599
473 437 391
352 313
2008 2009 2010 2011 2012 2013 2014 2015 2016 Up to
2027
29

30. Liquidity
Debt
Balance on
(R$ million) Maturity Cost
09/30/2008
Debentures 1st issuance 500.0 2012, 2013, 2014 CDI + 0.48% p.a.
Debentures 2nd issuance 499.5 2018 CDI + 0.65% p.a.
Total Debt 999.5
Net Debt
Cash and Cash Equivalents (818.2)
= 0.3 times
Net Debt 181.3 LTM EBITDA
Operational financing through SFH not accounted for
Financing through SFH
(R$ billion)
3.1 Contracted
0.6
Balance Due
30

31. Appendix
Ineditto Clube Residencial (Living)
São Bernardo do Campo, SP
Launched in June, 2008
73% sold until September, 2008
31

32. Cyrela Brazil Realty
2005 2006 2007 9M08
Launches (Full Year) R$ 1.2 bn R$ 2.9 bn R$ 5.4 bn R$ 4.0 bn
Pre-sales (Full Year) R$ 1.0 bn R$ 1.9 bn R$ 4.4 bn R$ 4.0 bn
Landbank 3.0 mn sq.m. 4.9 mn sq.m. 8.8 mn sq.m. 11.1 mn sq.m.
Low income units 0 720 6.7 thd 9.5 thd
Gross Margin
Baixa Renda 48.5%
524.4 42.2%
688.8 41.2%
688.8 41.5%
688.8
EBITDA Margin*
Baixa Renda 27.1%
524.4 22.3%
688.8 22.9%
688.8 21.6%
688.8
Net Margin*
Baixa Renda 23.2%
524.4 21.7%
688.8 24.7%
688.8 14.2%
688.8
# Homebuilders listed 2 4 21 21
Market Cap Cyrela Brazil Realty R$ 2.4 bn R$ 4.5 bn R$ 8.6 bn R$ 2.9 bn**
Market Cap of the Industry R$ 6.0 bn R$ 10.0 bn R$ 48.1 bn R$ 13.1 bn**
Number of cities 3 8 47 55
Employees 202 327 529 ~600
Seller Brokers & Team 100 200 743 ~700
*Adjusted for IPO expenses
**Market caps as of Jan 22, 2009 32

33. Joint Ventures
% CBR Region Segment Year
50% São Paulo Middle / Mid-High 2006
50% South All 2006
50% São Paulo Mid-High / Luxury 2007
50% MG and DF All 2007
50% São Paulo Middle / Mid-High 2008
50% Buenos Aires All 2007
Economic / Super
50% São Paulo 2007
Economic
Economic / Super
75% São Paulo 2007
Economic
Economic / Super
79% São Paulo 2006
Economic
33

34. Geographical Expansion
Presence in 55 cities in 17 states of Brazil and Buenos Aires in Argentina
70 Projects outside SP – RJ region
R$ 10.8 billion of PSV
(Cyrela’s stake: 59.0%)
Barueri Belém Belford Roxo Belo Horizonte
Cabo Frio Campinas Campos Canoas Caxias
do Sul Caxias Cotia Curitiba Diadema Duque
de Caxias Ferraz de Vasconcelos
Florianópolis Fortaleza Goiânia Gravataí
Guarulhos Jacareí Jacarepaguá Joao Pessoa
Jundiaí Lauro de Freitas Maceió Manaus Mogi
das Cruzes Natal Niterói Nizia Floresta Nova
Iguaçu Novo Hamburgo Palhoça Parnamirim
Porto Alegre Praia Grande Recife
Rezende Ribeirão Preto Rio de Janeiro
Salvador Santo André São Bernardo São
Caetano São Gonçalo São J. dos Campos São
José do Rio Preto São Luis São Paulo São
Sebastião Serra Sorocaba Vila Velha Vitória
34

35. Cyrela’s Distinct Brands: Maximizing Exposure to Demand
These brands allow Cyrela to reach all sectors of the Brazilian housing market
• “Economic” and “Super Economic”
• Core business : “Mid” to “High
Description projects to enhance company’s
End” housing
growth and explore opportunities
• Strong demand powered by lower • Strong demand with income
Demand interest rates and longer terms of growth and a favorable population
financing pyramid
Typical Cycle 24 months 36 months
Average Gross Margin ~35% ~40%
• Collections of 20% of the PSV up to
• Collections of 40-60% until the
delivery of the units
delivery of the units
Other Information • 80% of the PSV is assigned to
• Performed receivables are indexed
banks which fully finance the
at IGP-M + 12% p.a.
customer
35

36. Growth Strategy on Economic Segment
Launched in the 2nd half of 2006,
LIVING is already one of the largest players of this segment
Cyrela seeks for a leadership position in this segment
LIVING offers units starting at R$ 55 thousand
Unit Price per Family Income
R$ 200 thd
Economic
6 -12 minimum wages
R$ 100 thd
4 – 6 minimum wages Super Economic
R$ 55 thd
36

37. History
60s 90s 2000 2002 2005 2006 2007
First real estate Brazil Realty - Partnership Acquisition of Merger of Acquisition of Spin-off of
development, Joint Venture with RJZ to IRSA stake in Cyrela and RJZ Rental
mostly land with IRSA to enter Rio de Brazil Realty Brazil Realty Properties
New Joint
develop and Janeiro (CCP)
Cyrela was created Public Ventures
rent office market
in 1962 focusing on Offering Debentures
properties Follow on
the residential issued part I
(1994)
development Living
business Brazil Realty (Economic
IPO (1996) segment)
37

38. Smart and Efficient Financial Management
Land Exchange agreements (80%) when acquiring land
to reduce cash disbursements
Construction financed by customers
12% received before start of construction
47% received before delivery of the unit
Construction
More than 70% of units sold before start of
construction
Use of SFH (1) funds (TR + 10% p.a.)
Customer financing of receivables at INCC (2)
Customer financing of remaining receivables
Post - at IGP-M + 12% p.a.(3)
delivery Insignificant losses from default
(1) Brazilian mortgage financing system, reference rate index (TR) was 2.9% p.a. in 2005
(2) Residential Construction Cost index
(3) General market price index 38

39. Typical Cyrela Project
Completion
Launch Go-ahead Delivery
of payments
6M - 9M
Construction
Licensing
0M 6M 12M 18M 24M 30M 36M Up to 100M
Pre-sales 0 50 70 80 90 95 100 100
% Budget
Costs
- - 0% 20% 40% 65% 100% 100%
Revenues - - 0 16 36 62 100 100
Collections
(cumulative) - 7 14 20 28 34 50 100
Assumptions for this example:
Potential sales: R$125 million
Exchange agreements (land): R$25 million
Does not include financial revenues in customer financing
39

40. Typical Economic Project
Shorter operating cycle: 24 months
Launch Go-ahead Delivery Financing
6 – 9 months Construction
Pre-Launching
0M 6M 12M 18M 24M Up to 28M
Contracted Sales
(cumulative)
- 70 80 90 100 100
%Construction
Cost
- - 23% 55% 100% 100%
Revenues
(cumulative)
- - 19 49 100 100
Collections
(cumulative) - 6 11 13 20 100
Assumptions for this example:
Potential Sales: R$110 million
Exchange agreements: 100% (R$10 mn), Unit price 80% financed by partner banks
Client is fully financed by the banks after the assignment of the financing to them 40

41. Addressable Market Analysis
2005 Dec/2007 2008 +
Conditions Conditions Low Income
1
Cheapest Unit Value Offered ('000 R$) 110 110 70
Funding Rate (Nominal) 17.0% 11.4% 9.9%
Reference Tax (floating) 3.0% 0.9% 0.9%
Spread 14.0% 10.5% 9.0%
(-) Expected Inflation 4.0% 3.0% 3.0%
Funding Rate (Real) 13.0% 8.4% 6.9%
# years 10 25 30
Montly Instalment ('000 R$) 1.7 0.9 0.5
% Household Income 33.3% 33.3% 33.3%
Min. Monthly Income ('000 R$/month) 5.1 2.7 1.4
Addressable Mkt (mn households) 5.2 11.7 22.6
1 Developers' entrance on the affordable segment has brought down the price of the cheapest unit offered.
Source: UBS Pactual
41

42. Financing: Interest and Term Impact
Monthly Installment (R$)
Model:
Loan Term (years)
Unit Value: R$ 120,000 10 15 20 25 30
12% 1,377 1,152 1,057 1,011 987
Loan-To-Value: 80%
Real Interest Rate (%)
11% 1,322 1,091 991 941 914
Loan: R$ 96,000 10% 1,269 1,032 926 872 842
9% 1,216 974 864 806 772
Mortgage Effort: 30% 8% 1,165 917 803 741 704
7% 1,115 863 744 679 639
6% 1,066 810 688 619 576
5% 1,018 759 634 561 515
Example
Rental : R$800 per month
Minimum Wages Required (monthly salary)
Annual Yield: 8%
Loan Term (years)
Equivalent to Loan Instalment with 10 15 20 25 30
Real Interest Rate at 8% and 20 years 12% 13 11 10 10 9
Real Interest Rate (%)
term. 11% 13 10 9 9 9
10% 12 10 9 8 8
9% 12 9 8 8 7
8% 11 9 8 7 7
7% 11 8 7 6 6
6% 10 8 7 6 5
5% 10 7 6 5 5
42

43. Financial
Statements
Dez Aricanduva
São Paulo, SP
Launched in September, 2008
100% sold 43

44. Income Statement
R$ million 2005 2006 2007 CAGR 9M08
2005 - 07
Net Revenues(1) 688.8 1,116.7 1,707.3 57.4% 1,958.6
Growth % 31.4% 62.1% 52.9%
Gross Profit 318.6 471.5 703.2 48.6% 812.1
Margin % 46.2% 48.0% 41.2% 41.5%
EBITDA 157.7 248.5 390.5 57.4% 423.6
Margin % 22.9% 22.3% 22.9% 21.6%
Income Taxes (17.8) (58.0) (55.7) (81.1)
Minority Interest (16.1) (24.0) (24.5) (33.5)
Net Income 127.8 242.3 422.1 81.7% 277.4
Adjusted Net Income 153.6 263.1 422.1 65.8% 277.4
(1) Includes residential development revenues, rentals and services until 2006
Consistent Growth in Sales with Sustained Profitability 44