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Corporation
INDUSTRIAL | Construction / Construction & Design Services
tecnisa.com.br

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Founded Year

1977

Stage

IPO | IPO

Market Cap

0.28B

About Tecnisa

Tecnisa S.A. is a publicly traded Brazilian homebuilder.

Tecnisa Headquarter Location

Av. Brigadeiro Faria Lima, 3.729 1st Floor

Sao Paulo, SP 04538-133,

Brazil

(11) 3702-7200

Latest Tecnisa News

Gafisa : 3Q20 ITR Free Translation

Dec 18, 2020

12/18/2020 | 01:05pm EST Message : Brazil containing Quarterly Information (ITR) prepared in accordance with the accounting practices adopted in Brazil). 1 7 01/01/2020 to 09/30/2020 16 01/01/2020 to 09/30/2020 43 74 77 80 81 ACTUAL 619,025 304,312 36,591 3,709 73,142 ACTUAL 300,534 66,660 11,843 190,632 120,118 40,692 10,612 12,114 77,226 87,197 CODE DESCRIPTION 3.01.03 Taxes on real estate sales and services 3.02Cost of sales and/or services 3.02.01 Cost of real estate development 3.03Gross profit 3.04.05 Other operating expenses 3.05Income (loss) before financial results and income taxes 3.06Financial 3.11Income (loss) for the period 3.99Earnings per Share - (Reais / Share) 3.99.01 Basic Earnings per Share 3.99.01.01 ON 3.99.02.01 ON ACTUAL (56,493) (56,493) CODE DESCRIPTION 6.01.01 Cash generated in the operations 6.01.01.01 Income (loss) before income and social contribution taxes 6.01.01.02 Income from equity method investments 6.01.01.03 Stock options expenses 6.01.01.06 Depreciation and amortization 6.01.01.08 Provision for profit sharing 6.01.01.09 Warranty provision Provision for penalties due to delay in construction works 6.01.01.15 Payable for sale of shares 6.01.02 Variation in assets and liabilities 6.01.02.01 Trade accounts receivable 6.01.02.06 Taxes and contributions Transactions with related parties 6.02.01 Purchase of property and equipment and intangible assets 6.02.03 Redemption of short-term investments 6.02.04 Purchase of short-term investments 6.03Net cash from financing activities 6.03.01 Capital increase 6.03.03 Payment of loans, financing and debentures 6.03.06 Loan transactions with related parties 6.03.08 Disposal of treasury shares 6.03.09 Result of the disposal of treasury shares 6.03.12 Constitution of reserves 6.05.01 Cash and cash equivalents at the beginning of the period 6.05.02 Cash and cash equivalents at the end of the period YEAR TO DATE Capital reserves, - - Capital reserves, 0 0 0 CODE DESCRIPTION 7.01.04 Allowance for doubtful accounts 7.02Inputs acquired from third parties 7.02.01 Cost of Sales and/or Services 7.02.02 Materials, energy, outsourced labor and other 7.03Gross value added 7.06Added value received on transfer 7.06.01 Income from equity method investments 7.06.02 Financial income 7.08Value added distribution 7.08.01.01 Direct remuneration YEAR TO DATE ACTUAL 623,995 507,399 36,748 7,014 146,125 86,843 272,497 ACTUAL 259,336 of receivables 193,357 153,340 87,942 of receivables 12,114 86,250 87,197 ACTUAL CODE DESCRIPTION 3.01.03 Taxes on real estate sales and services 3.02Cost of sales and/or services 3.02.01 Cost of real estate development 3.03Gross profit 3.04.05 Other operating expenses 3.05Income (loss) before financial results and income taxes 3.06Financial 3.08.01 Current 3.11Income (loss) for the period 3.11.01 Income (loss) attributable to the Company 3.11.02 Net income attributable to non-controlling interests 3.99Earnings per Share - (Reais / Share) 3.99.01 Basic Earnings per Share 3.99.01.01 ON 3.99.02.01 ON ACTUAL (57,193) (57,193) (56,493) (700) CODE DESCRIPTION 6.01.01 Cash generated in the operations 6.01.01.01 Income (loss) before income and social contribution taxes 6.01.01.02 Income from equity method investments 6.01.01.03 Stock options expenses 6.01.01.06 Depreciation and amortization 6.01.01.08 Provision for profit sharing 6.01.01.09 Warranty provision Provision for penalties due to delay in construction works 6.01.01.15 Payable for sale of shares 6.01.02 Variation in assets and liabilities 6.01.02.01 Trade accounts receivable 6.01.02.06 Taxes and contributions Transactions with related parties 6.02Net cash from investing activities 6.02.01 Purchase of property and equipment and intangible assets 6.02.03 Redemption of short-term investments 6.02.04 Purchase of short-term investments 6.03Net cash from financing activities 6.03.01 Capital increase 6.03.03 Payment of loans, financing and debentures 6.03.06 Loan transactions with related parties 6.03.08 Disposal of treasury shares 6.03.09 Result of the disposal of treasury shares 6.03.12 Constitution of reserves 6.05Net increase (decrease) of cash and cash equivalents 6.05.01 Cash and cash equivalents at the beginning of the period 6.05.02 Cash and cash equivalents at the end of the period YEAR TO DATE Capital reserves, 0 0 Capital reserves, - - - CODE DESCRIPTION 7.01.04 Allowance for doubtful accounts 7.02Inputs acquired from third parties 7.02.01 Cost of Sales and/or Services 7.02.02 Materials, energy, outsourced labor and other 7.03Gross value added 7.06Value added received on transfer 7.06.01 Income from equity method investments 7.06.02 Financial income 7.08Value added distribution 7.08.01.01 Direct remuneration YEAR TO DATE 22 FOR IMMEDIATE RELEASE - São Paulo, November 16, 2020 - Gafisa S.A. (B3: GFSA3; OTC: GFASY), a leading Brazilian homebuilder, announced today its operational and financial results for the third quarter ended September 30, 2020. GAFISA ANNOUNCES 3Q20 RESULTS Gafisa's growth upturn is a reality, with 253% higher sales volume, R$1.1 billion in launches in 2020, and R$1 billion PSV in new acquisitions The third quarter of 2020 was marked by Gafisa's consistent recovery of operational performance, highlighting sales, launches, construction works delivery, and land acquisition. We recorded the best sales performance over the past two years, totaling R$144 million sales, reflecting a 253% quarter-on-quarter increase. After two years without new launches, we resumed launches in the third quarter of 2020, with Chez Perdizes, High Line Jardins, and Normandie Moema projects, totaling a PSV of R$264 million, all of them located in high-valued regions, with good liquidity in the city of São Paulo. Subsequently to the end of the third quarter, all these three launches today report healthy levels of sales, 20% in Chez Perdizes, 45% in High Line Jardins, and 60% in Normandie Moema. For the fourth quarter, we have other three launches totaling R$875 million, highlighting the Cyano Barra project with R$570 million PSV and a project in Campo Belo, SP, with R$262 million PSV. Again, we evidence the consistency of the Company's planning and delivery capacity, with two other projects delivered, with a total PSV of R$140 million, the 7th project delivered in 2020. We obtained the occupancy permit for the 8th and 9th projects, now we have achieved 94% of PSV estimated to be delivered in 2020. With the conclusion of the Upcon acquisition, we added two projects to be delivered in 2020, reaching a total of 10 projects with nearly R$1 billion PSV and 1,474 units. The evolution of construction works was maintained, as well as projects and sales, even during the pandemic. The Company, through its Management Committee - COVID-19, upheld the prevention measures necessary to ensure everyone's safety, evidencing the focus and discipline of Gafisa's new management, even amidst a more challenging international scenario. Still referring to our operational performance, it is worth noting that we acquired in the quarter two excellent plots of land in the city of São Paulo, one in Vila Mariana district, with an estimated PSV of R$116 million and another in the Butantã district, with an estimated PSV of R$162 million. Upcon also brought to our landbank an estimated PSV of R$900 million. We also concluded negotiations to acquire four projects from Calçada S.A., with an approximate PSV of R$747 million, and the acquisition of the last plot of land at Av. Delfim Moreira, definitively sets Gafisa's return to the city of Rio de Janeiro, through differentiated projects. Concerning financial results, it is worth noting that we maintained the REF margin (backlog results) at approximately 35%. This evidences that backlog result sustains the Company's margin at healthy levels in a continued and consistent improvement, despite a temporary reduction of adjusted gross margin (no financial cost), due to our conservative approach when recording provision for dissolutions and repricing of older inventories during the pandemic. 23 We also should point out a continuous improvement of the Company's balance sheet and deleverage. Within one year, we went from a Net Debt/Shareholders' Equity ratio of 162% in 1Q19 to current 7.6% in 3Q20, with a capital increase approved on August 7, 2020, injecting R$218.2 million into the Company's cash. We are confident that we are reaching a new cycle of high growth in the real estate market, with interest rates nearing the lowest historical levels, unparalleled credit market growth, and development. Furthermore, as fixed-income investments have very low yield, or even negative, real estate investment has increasingly become relevant in the investment portfolio of individuals and institutional investors. Within this virtuous context of growth in the real estate market and the assertive actions in its real estate development core business, Gafisa is executing its transformation to become a real estate platform to go beyond its core activity of real estate development. From its solid balance sheet and strategic planning, Gafisa set up a new line of business, the Gafisa Properties. We are also developing partnerships and investments in startups to bring innovation, technology, and new services for Gafisa and its clients. Gafisa Properties will own real estate assets to become profitable through leasing flows across the real estate spectrum, such as offices, residential units, shopping malls, and hotels, and its portfolio will be composed of Gafisa's built assets or under construction (e.g., offices, stores, and small residential units of up 50 m2)and new acquisitions with a focus on non-replicable locations and/or assets with turnaround opportunities. As far as innovation is concerned, we will apply our background and market expertise to pursue synergies and new business models according to a real estate Ecosystem vision that transforms Gafisa's real estate assets into business platforms to be explored throughout real estate asset's life cycle, whether assets held Gafisa Properties or sold by Gafisa to its end clients. We are confident that these actions will allow the Company to capture value for its shareholders. Gafisa relies on a traditional brand and is recognized as a benchmark in the Brazilian market. We are refining our new management model with dynamism and discipline, to prepare the Company for a new development and growth cycle that will restore Gafisa's history of success and value creation for our shareholders. Ian Andrade 24 1Adjusted by capitalized interest with stock option plan (non-cash) and minority shareholders. Backlog results net of PIS/COFINS taxes (3.65%), excluding the impact of the PVA (Present Value Adjustment) method according to Law No. 11.638. Backlog results comprise the projects restricted by a condition precedent. Cash and cash equivalents and marketable securities. Launches In 3Q20, Gafisa resumed launches, three projects with an estimated total PSV of R$264 million. These launches are a result of a relevant restructuring process. It is worth noting that the social distancing rules inflicted by the pandemic of Covid-19, suspended the operation of sales stands, affecting the economic activity in the country. The Company also postponed for a few months the launches foreseen early in the year, evidencing our focus and commitment to the Company's turnaround. As subsequent events, we already launched for 4Q20, other two projects, highlighting the Cyano Barra with R$570 million PSV, and we are already in the pre-launch of another project in Campo Belo, with an estimated PSV of R$262 million. 25 Sales Gross sales soared 247.7% to R$143.8 million in 3Q20 versus 2Q20, even during the pandemic, sales grew by 260.0% year-on-year. The quarter-on-quarter increase reflects the restructuring of the sales area, with Gafisa Sales' improved structure. The higher speed of sales compared to 3Q19 also reflects greater sales options available, with a resumption of launches and pre-launches in 3Q20. Dissolutions reached R$24.2 million in 3Q20, surging 12.4% from 2Q20 and 156% year-on-year. The quarter-on-quarter increase partially stems from a higher volume of deliveries in the period (not a concern for Management) and the pandemic of COVID-19. Efforts endeavored in the 2019 restructuring process advanced, resulting in renegotiations with Gafisa's clients, a more accurate credit analysis of potential clients, as well as the recovery of client confidence in the Company. Dissolutions (R$ million) Delivered Projects and Transfer In 3Q20, we delivered two projects, totaling 421 units, and a total PSV of R$140.3 million. It is also worth noting that besides delivering these two projects, in the third quarter, the Company obtained the occupancy permit for two projects with 160 units and PSV of R$166 million, besides projects delivered in 1H20 with 775 units and PSV of R$608.9 million. Total deliveries foreseen for 2020 is 10 projects with a PSV of R$971.8 million and 1,474 units. Therefore, out of the total, we already delivered/obtained occupancy permit for 9 projects or 94% of PSV. 29 ¹ Number of units corresponding to a 100% share in projects, net of swaps; PSV transferred in 3Q20 was R$73.5 million, 3.6% lower than in 2Q20, and 48.7% higher than in 3Q19. The lower volume of transfer reflects a smaller amount of projects delivered this quarter compared to the previous quarter. We highlight that this result was achieved even amidst a pandemic, with restricted business hours at notary offices, banks, people's movement, and our team in home office most of the time. We again reiterate the Company's expectation of a significant increase in PSV transferred during 2020, due to the expected delivery of 10 projects in total. Table 7 - Transfer and Delivery - (R$ 000) 3Q20 298.5% PSV transferred refers to the effective cash inflow from units transferred to financial institutions; ² Number of units corresponding to a 100% share in projects, net of swaps; ³ PSV = Potential Sales Value of units, net of brokerage, and swap. 30 Landbank With an estimated PSV of R$4.8 billion, the Company's landbank represents potential 40 projects/phases totaling 9,599 units. Approximately 49% of the acquisition value of our land consists of most of which are located in the city of São Paulo. This quarter, the Company acquired two plots of land in São Paulo, in Vila Mariana and Butantã districts, with an estimated PSV of R$255 million. Table 8 - Landbank (R$ 000) PSV¹ (%Cia.) -127bps Notes: Backlog results net of PIS/COFINS taxes (3.65%) and excluding the impact of the PVA (Present Value Adjustment) method according to Law No. 11.638. Backlog results comprise the projects restricted by acondition precedent. 34 Cash and Cash Equivalents and Marketable Securities On September 30, 2020, cash and cash equivalents and marketable securities totaled R$630.7 million, compared to R$570.2 million in 2Q20, reflecting the inflow of funds from a capital increase of R$218.2 million and debt amortization in the period, so that to sustain a liquidity cushion and enable our growth resumption. The Company believes that disciplined cost control and the maintenance of a liquidity reserve are essential for the operation. This business vision and team's readiness allowed the company to go through this period of uncertainty very consistently and smoothly. Receivables At the end of 3Q20, total accounts receivable came to R$933.2 million. Of this amount, R$630.9 million were already recognized in the balance sheet. Table 17 - Total Receivables (R$ 000) 3Q20 41 This release contains forward-looking statements about business prospects, estimates for operating and financial results, and Gafisa's growth prospects. Readers can identify many of these statements when reading words such as "estimates," "believes," "expects," and "will," as well as similar words or their respective negatives. Although management believes the expectations conveyed in such statements to be reasonable, it is unable to guarantee that such expectations will come to fruition, and they should not be deemed as projections. By their nature, forward-looking statements require us to make assumptions and, as such, are subject to risks and uncertainties. They are mere expectations and therefore are based exclusively on what management expects concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy, and the industry, among other factors; therefore, they are subject to change without prior notice. The forward-looking statements included in this release are based on the assumption that our plans and operations will not be affected by such risks, but if our plans and operations happen to be affected by these risks, the forward-looking statements might become inaccurate. We do not commit to revising these forward-looking statements unless it is explicitly required by the applicable securities regulation. IR Contacts (Amounts in thousands of Brazilian Reais, except as otherwise stated) 1. Operations Gafisa S.A. ("Gafisa" or "Company") is a publicly-traded company with registered office at Presidente Juscelino Kubitschek, 1.830, conjunto comercial 32, 3o andar, Bloco 2, in the city and state of São Paulo, Brazil, and began its operations in 1997 with the objectives of: (i) promoting and managing all forms of real estate ventures on its own behalf or for third parties (in the latter case, as construction company or proxy); (ii) selling and purchasing real estate properties; (iii) providing civil construction and civil engineering services; (iv) developing and implementing marketing strategies related to its own and third party real estate ventures; and (v) investing in other companies who share similar objectives. The Company enters into real estate development projects with third parties through special purpose entities (SPE) or through the formation of consortia and condominiums. Subsidiaries significantly share the managerial and operating structures, and corporate, managerial and operating costs with the Company. The SPEs, condominiums and consortia operate solely in the real estate industry and are linked to specific ventures. The Company has stocks traded on B3 S.A. - Brasil, Bolsa, Balcão (former BM&FBovespa), reporting its information to the Brazilian Securities and Exchange Commission (CVM) and the U.S. Securities and Exchange Commission (SEC). The ADSs were delisted on the NYSE on December 17, 2018, and are currently traded Over the Counter (OTC). 1.1 Coronavirus - COVID-19 In the period ended September 30, 2020, there has not been any significant impact from the outbreak of Coronavirus on the Company's operations. A Crisis Management Committee has been created that holds daily meetings and total availability for discussing and taking important disease prevention measures. Awareness campaigns to promote actions that mitigate transmission (frequent hygiene, distancing, meeting through virtual platforms, exclusive service channel, among others) have been created. We have implemented a series of educative and preventative measures targeted at our construction site employees, reducing the staff considered to be in the risk group. The sales activities have focused on digital interactions with prospective customers. The Company will keep following the implementation of the necessary actions with the Government Authorities, Ministry of Health, and trade associations. Until the disclosure date of this quarterly information, the Company has not noted a significant increase in customer default and contract cancellation or reduction in sales volume. Moreover, the construction of ventures has been according to the original schedule. Also, due to the Covid-19 pandemic, the Company has postponed the launches planned for the second quarter to the second half of this year. The Company has opted for deferring the payment of the federal taxes related to March, April and May 2020, collected later on, pursuant to Ordinances 139, 150 and 245. Under the terms of Provisional Measure 927, of March 22, 2020, the Company has also opted for deferring the FGTS deposits by employers, related to March, April and May 2020, with collection in six monthly installments from July 2020. Pursuant to Provisional Measure 936, of March 31, 2020, converted into Law 14,020 of 2020, the Company has reduced salaries by 25%, with proportional reduction in working hours, of a certain group of employees over a 90-day period. Additionally, there has been a voluntary 50% reduction in the salary of the Board of Director's members over a 180-day period. Thus far, there is a high volatility in the Company's stock price traded on the stock exchange as a result of the global concern for this pandemic and its developments. Management understands that at present, the projections used in the analysis of realization of its assets shall not suffer significant changes in the face of this event, and keeps the adopted assumptions. 43 Gafisa S.A. (Amounts in thousands of Brazilian Reais, except as otherwise stated) 2. Presentation of quarterly information and summary of significant accounting policies 2.1. Basis of presentation and preparation of individual and consolidated quarterly information On November 16, 2020, the Company's Board of Directors has approved the individual and consolidated quarterly financial information of the Company and authorized its disclosure. The individual Quarterly Financial Information (ITR) has been prepared in accordance with the Accounting Pronouncements Committee (CPC) Technical Pronouncement 21 (R1) - Interim Financial Reporting, and the consolidated Quarterly Financial Information (ITR) has been prepared in accordance with such pronouncement and the International Accounting Standard (IAS) 34 - Interim Financial Reporting, applicable to the real estate development entities in Brazil, registered with the Brazilian Securities and Exchange Commission (CVM). The aspects related to the transfer of control in the sale of real estate units follow the understanding of the company's management, aligned with that issued by the CVM in the Circular Letter /CVM/SNC/SEP 02/18 on the application of the Technical Pronouncement NBC TG 47 (IFRS 15), consistently with the rules issued by the CVM, applicable to the preparation of the ITR. The quarterly financial information has been prepared using the same accounting practices, judgments, estimates and assumptions adopted in the presentation and preparation of the financial statements for the year ended December 31, 2019. Therefore, the corresponding quarterly financial information shall be read together with the financial statements as of December 31, 2019. The individual quarterly financial information of the Company is not considered in compliance with the International Financial Reporting Standards (IFRS), once it considers the capitalization of interest on qualifying assets of investees in the individual quarterly financial information of the Company. The quarterly financial information has been prepared on a going concern basis. Management periodically assesses the Company's ability to continue as going concern when preparing the quarterly financial information. All amounts reported in the accompanying quarterly financial information are in thousands of reais, except as otherwise stated. The other explanations related to this note were not subject to material changes in relation to the disclosures in Note 2.1 to the individual and consolidated financial statements as of December 31, 2019. All material information characteristic of the quarterly financial information, and only it, is being evidenced, and corresponds to those used by Management in its administration. 2.1.1. Consolidated quarterly financial information The accounting practices were uniformly adopted in all subsidiaries included in the consolidated quarterly financial information, and the fiscal year of these companies is the same of the Company. See further details in Note 9. The other explanations related to this note were not subject to material changes in relation to the disclosures in Note 2.1.1 to the individual and consolidated financial statements as of December 31, 2019. 44 Gafisa S.A. (Amounts in thousands of Brazilian Reais, except as otherwise stated) 2.1.2. Functional and presentation currency The functional and presentation currency of the Company is the Brazilian real, mainly because of its revenues and the incurred costs of operations. 3. New standards, changes and interpretation of standards issued and adopted from 2020, and not yet adopted The explanations related to this note were not subject to material changes in relation to the disclosures in Note 3 to the individual and consolidated financial statements as of December 31, 2019. There is no other standard, changes to standards or interpretation issued and not yet adopted that could, on the Management's opinion, have significant impact arising from their adoption on its quarterly financial information. 4. Cash and cash equivalents and short-term investments 4.1. Cash and cash equivalents Company 401,895 Exclusive and open-end funds whose purpose is to invest in financial assets and/or fixed-income investment modalities that follow the fluctuations in interest rates in the interbank deposit market (CDI), by investing its funds mostly in investment fund shares and/or investment funds comprising investment fund shares. The Company entered into a swap contract to mitigate the risk of its exposure to index and interest rate volatility (Note 20(i)(b)). As of September 30 and December 31, 2019, Certificates of Bank Deposit (CDBs) include interest earned through the statement of financial position's reporting date, ranging from 93.5% to 110% of Interbank Deposit Certificates (CDI). Restricted credits are represented by funds pledged to transactions with financial institutions. 45 Gafisa S.A. (Amounts in thousands of Brazilian Reais, except as otherwise stated) 5. 166,916 Amount related to the advance made related to the acquisition of four ventures of Calçada Empreendimentos Imobiliários. The transaction was approved by the Administrative Council for Economic Defense (CADE) on November 3 (Note 31 (ii)). 8. Non-current assets held for sale 8.1 Land available for sale The Company, in line with its strategic direction, opted to sell land not included in the business plan in effect. Likewise, it devised a specific plan for the sale of such land. The carrying amount of such land, adjusted to market value when applicable, after the test for impairment, is as follows: Company (Amounts in thousands of Brazilian Reais, except as otherwise stated) 9. Investments in ownership interests--Continued 9.1 Business combination Acquisition UPCON S.A. On September 23, 2020, the Company disclosed the completion of the acquisition of the totality of Upcon S.A.'s shares, settled with the Company's shares. Such transaction gave rise to a goodwill in the amount of R$130,063, for which the Company commissioned a study from a company specialized in determining the Purchase Price Allocation (PPA) for allocation of goodwill over a period of up to one year, according to CPC 15(R1) - Business Combinations. The following table shows the determination of the acquisition cost, pursuant to CVM Resolution 665/11: Acquisition cost 107,029 On March 26, 2020, the Company completed the renegotiation of its financial liabilities with the financial institution Banco do Brasil S.A. in the total amount of R$138,355. This transaction enabled the Company to extend the final maturity of such debts until June 2025 and reduce the finance cost. Also in the scope of the renegotiation, the Company started to work on the time required to sell the units in inventory tied to this transaction. In the period ended September 30, 2020, the Company made payments totaling R$250,469, of which R$235,151 related to principal and R$15,318 related to the interest payable. The current and non-current portions have the following maturities: Company 39,346 In the context of the acquisition of the totality of UPCON's shares, on July 17, 2020, the Company signed the indenture of the 15th convertible debenture, of the subordinate type, into two series, in the total amount of R$33,750, maturing on July 15, 2020. The coupon rate applied to the face value corresponds to 0.50% per year and the index is the IGPM. The principal and coupon payments are only made on the respective maturity date, and may be settled by using the Company's shares. On September 15, 2020, the subsidiary Novum signed the indenture of the first non-convertible debenture issue, with secured guarantee, in sole series, in the total amount of R$190,000, maturing in September 2024. The net proceeds from this issue will be fully and only used to develop the real estate development ventures "Scena Tatuapé", "Parque Ecoville", "Moov Belém", "Moov Estação Brás", "Moov Parque Maia", "Belvedere" and "Upside Paraíso". The funds shall be released according to the construction works' needs, amortization and interest payments shall be made at the end of the operation. The coupon rate applied to the face value corresponds to the cumulative change of Interbank Deposits (DI) plus a surcharge equivalent to 6% p.a. In the period ended September 30, 2020, the Company made the following payments: Face value investments(3), cannot exceed 75% of equity plus non-controlling interests -17.14% -15.81% Total receivables, whenever mentioned, refer to the amount reflected in the Statement of Financial Position plus the amount not shown in the Statement of Financial Position. Venture debt and secured guarantee debt refer to SFH debts, defined as the sum of all disbursed borrowing contracts which funds were provided by the SFH. Cash and cash equivalents and short-term investments refer to cash and cash equivalents and marketable securities. The other explanations related to this note were not subject to material changes in relation to the disclosures in Note 13 to the financial statements as of December 31, 2019. 14. Obligations assumed on the assignment of receivables The transactions of assignment of the receivable portfolio are as follows: Company (Amounts in thousands of Brazilian Reais, except as otherwise stated) 16. Provisions for legal claims and commitments--Continued Lawsuits which likelihood of loss is rated as possible As of September 30, 2020, the Company and its subsidiaries are aware of other claims, and civil, labor and tax risks. Based on the history of probable lawsuits and the specific analysis of main claims, the measurement of the claims with likelihood of loss considered possible amounted to R$487,235 (R$562,439 in 2019) in the Company's statements and R$488,172 (R$565,410 in 2019) in the consolidated statements, based on average past outcomes adjusted to current estimates, for which the Company's Management believes it is not necessary to recognize a provision for any losses. The change in the period was caused by the change in the volume of lawsuits with diluted amounts, and review of the involved amounts. Company Payables related to the completion of real estate ventures There was no material change in relation to the information disclosed in Note 16(i)(b) to the financial statements as of December 31, 2019. Other commitments In addition to the commitments mentioned in Notes 6, 12 and 13, the Company has commitments related to the rental of two commercial properties where its facilities are located, at a monthly cost of R$171 (including rent, condominium fees, and IPTU), indexed to the IGP-M/FGV change and termination of contract in August 2024. The estimate of minimum future rent payments of this new contract for commercial property (cancellable leases) totals R$8,240, considering the above-mentioned contract expiration, as follows. Consolidated 18.1. Capital At the Extraordinary Shareholders' Meeting held on April 30, 2020, shareholders approved the absorption of the Company's retained losses by its capital in the amount of R$2,585,033. The Company's Board of Directors ratified the following capital increases in the period ended September 30, 2020: On August 7, 2020: subscription and pay-in of 75,610,000 new common shares at the price of R$4.10, totaling R$ 310,001. On September 25, 2020: subscription and pay-in of 95,121,951 new common shares at the price of R$4.10, totaling R$390.000. Accordingly, as of September 30, 2020, the Company's authorized and paid-in capital amounted to R$1,041,248 (R$2,926,280 in 2019), represented by 290,731,951 registered common shares, with no par value, of which 341,570 (2,981,052 in 2019) were held in treasury. According to the Company's Articles of Incorporation, capital may be increased without need of making amendment to it, upon resolution of the Board of Directors, which shall set the conditions for issuance within the limit of 600,000,000 (six hundred million) common shares. 56 23.27 During the period ended September 30, 2020 and year ended December 31, 2019, the Company did not grant any option in connection with its stock option plans comprising common shares. The models used by the Company for pricing granted options are the Binomial model for traditional options and the MonteCarlo model for options in the Restricted Stock Options format. 18.3. Share-based payment - Phantom Shares The Company has a total of two cash-settledshare-based payment plans with fixed terms and conditions, according to the plans approved by the Company, launched in 2015 and 2016. As of September 30, 2020, the amount of R$1,156 (R$1,702 in 2019), related to the fair value of the phantom shares granted, is recognized in the line item "Other payables" (Note 15). The other explanations related to this note were not subject to material changes in relation to the disclosures in Note 18 to the financial statements as of December 31, 2019. 19. Income tax and social contribution The reconciliation of the effective tax rate for the periods ended September 30, 2020 and 2019 is as follows: Company (Amounts in thousands of Brazilian Reais, except as otherwise stated) 20. Financial instruments The Company and its subsidiaries engage in operations involving financial instruments. These instruments are managed through operational strategies and internal controls aimed at providing liquidity, return and safety. The use of financial instruments for hedging purposes is achieved through a periodical analysis of exposure to the risk that the Management intends to cover (exchange, interest rate, etc.) which is submitted to the corresponding Management bodies for approval and performance of the proposed strategy. The control policy consists of ongoing monitoring of the contracted conditions in relation to the prevailing market conditions. The Company and its subsidiaries do not use derivatives or any other risky assets for speculative purposes. The result from these operations is consistent with the policies and strategies devised by the Company's Management. The Company and its subsidiaries operations are subject to the risk factors described below: Risk considerations Credit risk There was no significant change in relation to the credit risks disclosed in Note 20(i)(a) to the financial statements as of December 31, 2019. Derivative financial instruments In the period ended September 30, 2020, the Company entered into financial derivative instruments to mitigate the risk arising from its exposure to index and interest volatility recognized at fair value in profit or loss for the year. As of December 30, 2020, the Company had derivative contracts to hedge the interest rate fluctuation, maturing in February 2021. The derivate contracts are as follows: Unrealized gains/(losses) on 1,261,650 The Company uses the following classification to determine and disclose the fair value of financial instruments by valuation technique: Level 1: quoted prices (without adjustments) in active markets for identical assets or liabilities; Level 2: inputs other than the quoted market prices within Level 1 that are observable for asset or liability, either directly (as prices) or indirectly (derived from prices); and Level 3: inputs for asset or liability not based on observable market data (unobservable inputs). The classification level of fair value for financial instruments measured at fair value through profit or loss of the Company as of September 30, 2020 and December 31, 2019 is as follows: Company (Amounts in thousands of Brazilian Reais, except as otherwise stated) 20. Financial instruments-Continued Risk of debt acceleration As of September 30, 2020, the Company has loans and financing contracts with restrictive covenants related to cash generation, indebtedness ratios, capitalization, debt coverage, maintenance of shareholding position, and others. The breach of such obligations by the Company may give rise to the acceleration of its debts and/or acceleration of other debts of the Company, including due to the performance of any cross default or cross acceleration clauses, which may negatively impact the profit or loss of the Company and the value of its shares. These restrictive covenants have been complied with by the Company and do not limit its ability to conduct its business as usual. Capital stock management The explanations related to this note were not subject to material changes in relation to the disclosures in Note 20(iii) to the financial statements as of December 31, 2019. The Company included in its net debt structure: loans and financing, debentures, less cash and cash equivalents and short-term investments: Company (Amounts in thousands of Brazilian Reais, except as otherwise stated) 20. Financial instruments--Continued Sensitivity analysis The sensitivity analysis of financial instruments for the period ended September 30, 2020 describes the risks that may give rise to material changes in the Company's profit or loss, as provided for by CVM, through Rule 475/08, in order to show a 10%, 25% and 50% increase/decrease in the risk variable considered. As of September 30, 2020, the Company has the following financial instruments: Financial investments, loans and financing and debentures linked to the Interbank Deposit Certificate (CDI); Loans and financing linked to the Referential Rate (TR) and CDI, and debentures linked to the CDI and Broad Consumer Price Index (IPCA); Accounts receivable and payables for purchase of properties, linked to the National Civil Construction Index (INCC) and General Market Price Index (IGP-M). For the sensitivity analysis in the period ended September 30, 2020, the Company considered the interest rates of investments, loans and accounts receivable, the CDI rate at 3.54%, TR at 0%, INCC at 5.32%, IPCA at 3.14% and IGP-M at 14.40%. The scenarios considered were as follows: Scenario I - Probable: 10% increase/decrease in the risk variables used for pricing Scenario II - Possible: 25% increase/decrease in the risk variables used for pricing Scenario III - Possible: 50% increase/decrease in the risk variables used for pricing The Company shows in the following chart the sensitivity to risks to which the Company is exposed, taking into account that the possible effects would impact the future results, based on the exposures shown as of December 31, 2019. The effects on equity are basically the same of the profit or loss ones. Scenario (Amounts in thousands of Brazilian Reais, except as otherwise stated) 31. Events after the reporting period Convertible debenture issue On October 21, 2020, the Company disclosed a Material Fact informing that the Board of Directors approved the following items: the launch of the public offering with restricted efforts for the placement of the sixteenth debenture issue of the Company, convertible into common shares, in two series, with secured guarantee, in the total amount of R$117,570, with unit value of R$10, and the signature of the respective trust indenture; increase in the capital of the Company upon debenture conversion, provided that the increase limit of 600 million common shares is observed. On November 16, 2020, in view of the conversion of the Company's Series I debentures of the sixteenth issue, the Board of Directors approved the following: ratification of the issue of 9,944,150 common shares of the Company; and the consequent approval of the increase in the Company's capital: increase in the number of shares from 290,731,951 registered book-entry common shares to 300,676,101 registered book-entry common shares, and the increase in the Company's capital from R$ 1,041,248 to R$ 1,083,248. On November 3, 2020, the Company informed about CADE's approval of the transaction made with Calçada for acquisition of the totality of its share in four real estate ventures located in the Southern and Western zones in the city of Rio de Janeiro. Acquisition of assets in São Paulo On November 10, 2020, the Company informed that it entered into a contract for acquisition of real estate assets located in the Western zone in the city of São Paulo. This acquisition depends on the fulfillment of conditions precedent, including due diligence, and is expected to be completed in December 2020. Intention of making a business combination with Tecnisa On August 19, 2020, the Company disclosed a Material Fact informing that it sent to Tecnisa's Board of Directors a proposal for the potential integration of Tecnisa's business with Gafisa, with transformational characteristics for both Tecnisa and Gafisa. The management of both companies shall negotiate the establishment of the applicable procedures, which studies have already been initiated at Gafisa, as approved by its Board of Directors. There are many synergies between the two companies, the major players of the sector, particularly if we consider the possible combination of their potentials. For these reasons, Gafisa understands that this operation will add value to all of its shareholders as well as to those of Tecnisa. Any alternative of this analyzed operation shall be voluntary and structured to ensure that all shareholders of Tecnisa receive equal treatment, and in case of exchange or barter, the economic condition is kept. 72 (Amounts in thousands of Brazilian Reais, except as otherwise stated) 31. Events after the reporting period--Continued Intention of making a business combination with Tecnisa This operation includes the Gafisa's request to make amendments to the Articles of Incorporation and management of Tecnisa, by resolution at the Shareholders' Meeting, as Gafisa had acquired the required amount of shares in the market to request such meeting to be called, pursuant to CVM Instruction 627/2020, included in Note 4.2. Gafisa believes that an integration between the projects of these two companies shall potentially benefit the shareholders of both companies, particularly nowadays, when the real estate market is recovering. Coronavirus - COVID-19 As of the disclosure date of this quarterly information, the Company, through its Crisis Management Committee, continues to perform periodic analysis and monitoring of the actions to be taken to anticipate any impact on business. Until the disclosure date of this quarterly information, the Company has not noted a significant increase in customer default or reduction in sales volume, having even recording a sales increase in the quarter. However, even though it has not noted a significant increase in default in the period, the Company recognized an increase in the allowance for cancelled contracts because of the revaluation of the contracts in effect in relation to the uncertainty over cash inflows during the pandemic. Moreover, the construction of ventures has been according to the original schedule. However, due to the Covid-19 pandemic, the Company has postponed the launches planned for the second quarter to the second half of this year, currently having three projects in launch phase. Therefore, even considering the scenario of uncertainty over the end of the pandemic for resuming activities and its negative impact on the country's economy, management has evaluated the effects after the reporting period of the quarterly information as of September 30, including on its projections of profit or loss and cash generation, based on its best estimate, and has concluded that there is no need to recognize additional loss allowance, nor is any material adverse effect on its operations. The Company is going to keep monitoring the pandemic to continually update its projections and analysis on any effect on its financial information. *** Other information deemed relevant by the Company 1. SHAREHOLDERS HOLDING MORE THAN 5% OF THE VOTING CAPITAL AND TOTAL NUMBER OF OUTSTANDING SHARES 09/30/2020 3 - COMMITMENT CLAUSE The Company, its shareholders, directors and board members undertake to settle, through arbitration, any and all disputes or controversies that may arise between them, related to or originating from, particularly, the application, validity, effectiveness, interpretation, breach and the effects thereof, of the provisions of Law No. 6404/76, the Company's By-Laws, the rules determined by the Brazilian Monetary Council (CMN), by the Central Bank of Brazil and by The Brazilian Securities and Exchange Commission (CVM) as well as the other rules that apply to the operations of the capital market in general, in addition to those established in the New Market Listing Regulation, Participation in the New Market Contract and in the Arbitration Regulations of the Chamber of Market Arbitration. 76 To Shareholders and Management of Gafisa S.A. Introduction We have reviewed the accompanying individual and consolidated interim financial information of Gafisa S.A. ("Company"), identified as Company and Consolidated, respectively, contained in the Quarterly Financial Information (ITR) for the quarter ended September 30, 2020, which comprises the statement of financial position as of September 30, 2020, and the respective statements of profit or loss and comprehensive income for the three and nine-month periods then ended, and the statements of changes in equity and cash flows for the nine-month period then ended, including the explanatory notes. The Company's management is responsible for the preparation of the individual interim financial information in accordance with the Accounting Pronouncements Committee (CPC) Technical Pronouncement (CPC) 21 (R1) - Interim Financial Reporting, and of the consolidated interim financial information in accordance with such pronouncement and the International Accounting Standard (IAS) 34 - Interim Financial Reporting, applicable to the real estate development entities in Brazil, registered with the Brazilian Securities and Exchange Commission (CVM), as well as the presentation of such information according to the rules issued by CVM, applicable to the preparation of Quarterly Financial Information (ITR). Our responsibility is to express a conclusion on such interim financial information based on our review. Scope of review We have conducted our review according to the Brazilian and international review standards of interim financial information (NBC TR 2410 - Review of Interim Financial Information Performed by the Auditor of the Entity, and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of the persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with standards on auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. 77 Conclusion from the individual interim financial information Based on our review, we are not aware of any fact that makes us believe that the individual interim financial information included in the quarterly financial information referred to above has not been prepared, in all material respects, in accordance with the Technical Pronouncement CPC 21 (R1), applicable to the real estate development entities in Brazil, registered with the Brazilian Securities and Exchange Commission (CVM), applicable to the preparation of Quarterly Financial Information (ITR), and presented according to the rules issued by CVM. Conclusion from the consolidated interim financial information Based on our review, we are not aware of any fact that makes us believe that the consolidated interim financial information included in the quarterly financial information referred to above has not been prepared, in all material respects, in accordance with the Technical Pronouncement CPC 21 (R1) and IAS 34, applicable to the real estate development entities in Brazil, registered with the Brazilian Securities and Exchange Commission (CVM), applicable to the preparation of Quarterly Financial Information (ITR), and presented according to the rules issued by CVM. Emphasis of matter As described in Note 2, the individual interim financial information contained in the Quarterly Financial Information (ITR) has been prepared in accordance with CPC 21, applicable to real estate development entities in Brazil, registered with CVM, and the consolidated interim financial information, contained in the ITR, has been prepared in accordance with CPC 21 and IAS 34, applicable to real estate development entities in Brazil, registered with CVM. Accordingly, the determination of the accounting policy adopted by the entity on recognition of revenue from purchase and sale of real estate unit not completed, on aspects related to transfer of control, follows the Company's Management understanding of the application of CPC 47, aligned with that issued by CVM in the Circular Letter/CVM/SNC/SEP 02/2018. Our opinion does not contain exception in relation to this matter. 78 Statement of value added The quarterly information referred to above includes the individual and consolidated statements of value added for the nine-month period ended September 30, 2020, the preparation of which is attributed to the Company's management and is presented as supplementary information for IAS 34 purposes, applicable to real estate development entities in Brazil, registered with CVM. These statements have been submitted to the review procedures performed together with the review of the quarterly information, with the aim to conclude whether they are reconciled with the interim financial information and the accounting records, as applicable, and their format and content follow the criteria established in the Technical Pronouncement CPC 09 - "Statement of value added". Based on our review, we are not aware of any fact that makes us believe that they have not been prepared, in all material respects, following criteria established in such Technical Pronouncement and consistently with the individual and consolidated interim financial information taken as a whole. Rio de Janeiro, November 16, 2020. CRC-RJ-2026/O-5

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