Contact IR: A. Emílio C. Fugazza Chief Financial Officer and Investor Relations Officer Augusto T. Yokoyama Controllership and Investor Relations Manager Hugo G. B. Soares Investor Relations Analyst Tel.: +55 (11) 5056-8313 ri@eztec.com.br www.eztec.com.br/ir EZTEC S.A. ON (Bovespa: EZTC3) Closing Price: R$ 17.37 # shares: 165.001.783 Market Cap: R$ 2,866 MN Date: 07/12/2018 Preliminary Operational Results 2Q18
EZTEC acquires residential project in Parque da Cidade The project is already approved and contributes with a PSV of R$500 million São Paulo, April 12 th, 2018 - EZTEC SA (BOVESPA: EZTC3; Bloomberg: EZTC3: BZ), announces its preliminary operating results for the second quarter of 2018 (2Q18). Note that the results presented here are managerial results and are subject to revision following the external audit. The complete and audited results for 2Q18 are scheduled to be disclosed on August 13th, 2018, after market closure. Launches In the second quarter EZTEC has not carried out any launches. One must consider, noentheless, the impact from an acquisition of incremental stakes in the project Jardins do Brasil, where EZTEC acquired additional 5% in quotas, totaling a final participation of 46.25%. Considering that the project has already launched 5 out of its 6 phases, the acquisition contributes with additional inventory and receivables from the launched phases representing an increment that corresponds to R$23.8 million, to be added to the overall launches balance of the semester. Apart from the phases that were already launched in Jardins do Brasil (out of which, only one of them is still to be delivered, which is contractually set to happen on the third quarter), there is also a last phase still to be launched. Considering the 5% proportion that was recently acquired, there is a PSV gain of R$18.8 million to the Company landbank. The most expressive addition to the Company s future launches perspective, however, is the acquisition of the residential project in Parque da Cidade, the most sophisticated residential project in the Company s history: two towers directed towards the high-income segment, embedded into the Parque da Cidade complex (Chácara Santo Antônio, in the South Zone of São Paulo). The complex, which is developed by OR (a company from the Odebrecht group), is composed of commercial towers some of which are already fully constructed, a fivestar hotel and a shopping mall. The acquisition made encompasses exclusively the residential segment within the broader complex. As though as the project was already approved upon acquisition, it is still to be launched and constructed by EZTEC. The acquisition cost totaled R$90 million, with a R$10 million down payment still on the 2Q18. The remaining R$35 million needed to cover the first half of the acquisition cost have already been paid for as well, although this only happened once the due diligence cancellation clause was overcome which took place, as a subsequent event, by July of 2018. Once it is launched, the project will contribute with a PSV of approximately R$500 million which may vary as a function of commercial studies to be carried out in further depth in the upcoming months. Apart from being a high-standard project, it has a differentiated architectural design, while neighboring other iconic EZTEC projects, including the EZ Towers and EZ Esther Towers. 792 650 Launched PSV 1.915 Cumulative Launched PSV 1.068 49 75 68 151 106 24 2Q17 3Q17 4Q17 1Q18 2Q18 Aquisição de Participação EZ Towers 993 226 232 129 2013 2014 2015 2016 2017 2018 2
Sales and Cancellations From the operational standpoint, EZTEC presented in the 2Q18 net sales that were inferior to those from the previous quarter, at R$ 79.7 million. This operational performance can be decomposed into R$ 134.5 million gross sales, marked by a 31% contraction relative to the first quarter, impacted by the lack of launches; and R$ 54.8 million in cancellations, with a 25% drop relative to 1Q18, due to the distancing from the 2017 delivery cycle. A better understanding of this performance must be informed by the fact that the truck drivers strike decelerated sensibly the consumer transit in sale stands. The quarter s highlight includes the Cidade Maia megaproject, which reported 58 units sold in the quarter, returning to a state of positive net sales. Net Sales and Cancellations by Status 135 27 11 96 55 11 44 Gross Sales 2T18 Cancellations 2T18 Ready Units In Construction Launches 717 Net Sales 1607 Cumulative Net Sales 650 40 102 121 80 67 2Q17 3Q17 4Q17 1Q18 2Q18 EZ Towers 727 863 201 412 76 2013 2014 2015 2016 2017 2018 3
Guided by transparency and continuity, the graph below discloses gross sales and cancellation figures, accumulated over 12 months, where one can observe cancellations showing a consistent downward tendency since 3Q16, against a gross sales recovery, signaling to gradually improving net sales, which is associated with the conclusion of the cycle of deliveries: Sales and Cancellations - LTM (R$ MN) 1.952 1.724 1.619 1.666 1.654 1.538 1.606 1.419 1.450 1.439 1.562 1.311 1.284 1.151 1.456 1.451 1.393 933 1.297 1.191 690 1.032 777 899 740 732 675 678 691 698 683 633 594 618 581 552 553 576 517 530 477 411 421 400 333 368 313 Guided 254by transparency and continuity, the graph below discloses gross sales and cancellation figures, accumulated over 12 months, where one can observe cancellations showing a consistent downward tendency since 3Q17, against a recent push in gross sales, signaling to gradually improving net sales, which is associated with the upcoming conclusion of the cycle of deliveries: 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Gross Sales 12M (R$ MN) Gross Sales 12M (unit) Cancellations 12M (R$ MN) Cancellations 12M (unit) Ex-EZ Towers The following chart shows the sales over supply calculations, weighted by EZTEC s participation, highlighting the liquidity of the projects originated by the Company: SALES OVER SUPPLY 2Q18 2Q17 1H18 1H17 + Initial inventory (m²) 191.403 180.974 197.142 182.427 + Launches in the period (m²) 2.198 5.677 9.705 5.677 = Inventory + Launches (m²) 193.600 186.652 206.847 188.105 - Net Sales in the period(m²) 10.839 4.830 24.085 6.284 Gross Sales in the period(m²) 19.564 22.921 44.894 41.893 Cancellations in the period (m²) -8.725-18.091-20.808-35.609 = Final inventory (m²) 182.762 181.821 182.762 181.821 Net Sales Over Supply (%) 5,6% 2,6% 11,6% 3,3% Gross Sales Over Supply (%) 10,1% 12,3% 21,7% 22,3% 4
Managerial Figures (1H18) 24% Gross Sales by Period of Launch 14% 22% R$ 327 MN 13% 3% 4% 20% Until 2012 2013 2014 2015 2016 2017 2018 Cancellations by Period of Launch 24% 2% 4% 13% 3% R$ 128 MN 54% Until 2012 2013 2014 2015 2016 2017 2018 4% Gross Sales by Segment 22% 0% Cancellations by Segment 61% R$ 327 MN 39% 14% R$ 128 MN 35% Médio Alto Médio-Alto Comercial 25% Middle-End High-End Middle-High End Commercial 5
Contat IR: A. Emilio C. Fugazza Chief Financial Officer and Investors Relations Officer Augusto T. Yokoyama Controllership and IR Manager Hugo G. B. Soares IR Analyst ri@eztec.com.br Tel.: (55) (11) 5056-8313 6