Corporate Presentation

Bradesco's 4th CEO Forum – November, 2014

History and Business Model

3

More Than 30 Years of History

48%

Controlling Shareholders¹ Others

52%

155,298,749 ordinary shares

1. Participation held directly and indirectly by the Controlling Shareholder

2. Data: 10/02/2014

Industrial projects acting

as contractor to third

parties

Important geographic

expansion: Brasília, Rio de

Janeiro and Campinas

Development of projects

focused on the low-income

segment

Beginning of large scale

projects for the low-income

segment

Consolidation of a leading

position in Manaus and

Brasilia

Operations expansion to

PA, RO and ES

IPO 36% annual growth

in PSV launched

(CAGR)

69% annual growth

in net revenue

(CAGR)

Follow-on

MCMV 2

Establishment of

own sales team

1981 - 2005 2006-2007 2008 2009 2010-2011 2012

Record net

revenue of R$ 1.4

Billion, a 28% YoY

growth

More than R$

1 billion on

projects delivered

during 2012

Increasing stock

liquidity

The most relevant

player in the MCMV

2nd phase Level 1

Focus on Cash

Generation and

Construction

Service business

2013

2%

1%

12%

16%

45%

24%

Others

Asian

South American

Europe

North American

Brazil

Free Floating (others 52%)²

Unique Footprint Strong footprint in markets with high growth potential, low

competition and high barriers to entry Low competition in

profitable markets

Track Record in

Operating in the low-

Income segment

Over 30 years of experience

Solid track record in MCMV Level 1 projects

Low equity commitment,

solid margins and high

ROIC

Focus on Large

Scale Projects

Verticalized

Business Model

Strong expertise in large scale ventures

Own work force

Performance-based compensation

Standardized and industrialized production on-site

Large scale operations in

the low-income segments,

with strict cost control and

high margins

4

Direcional: A Unique Business Model

The most profitable

and efficient player in

the low-income sector

‘’’’

High efficiency and profitability

ROE¹ among the highest in the sector LTM ROE¹: 18%

1. LTM ROE (2013): Net Income in the Last Twelve Months / Average Shareholders’ Equity in the Last Twelve Months (net of non-controlling interest in silent partnerships and SPEs)

The best low-income player in Brazil

Industrialization Aluminum panels and concrete walls technology

45 days to develop a five floors building

1

2

3

5

4

Focus on the Low-Income Segment

Launched - Construction Service

(PSV R$ million)

CAGR -5%

9M14

303

2013

523

2012

698

2011

924

2010

686

2009

630

Launched - Development

(PSV R$ million)

CAGR +91%

9M14

1,004

2013

2,041

2012

1,647

2011

522

2010

380

2009

154

Construction Service Development

MCMV Level 1

+ Little or no cash burn

+ Higher ROE

+ Lower risk

+ Non-cyclical market

- Lower Margin

Development

- Higher cash burn

- Lower ROE

- Higher risk

- Cyclical market

+ Higher Margin

Total Launched – Track Record

(PSV R$ million)

77%80%70%

36%36%

20%

1,306

9M14

303

1,004

2013

2,565

523

2,041

2012

2,345

698

1,647

2011

1,447

924

522

2010

1,067

686

380

2009

783

630 154

Development

Construction Service

% Construction Service

The Growth Coming From The Construction Service (MCMV Level 1)

6

Total Hired % Balance Delivered % %(A) (B) (C) (C/A) (C/B)

Level 1 2.000.000 1.619.400 81% 380.600 552.644 28% 34%

Level 2 1.200.000 1.441.404 100% - 1.040.570 87% 72%

Level 3 400.000 438.836 100% - 142.391 36% 32%

Total 3.600.000 3.499.640 380.600 1.735.605

Results MCMV (Phase 1 & 2) - Up - to Date

MCMV Focus Moving Towards Level 1

Program Challenges ("Ministério das Cidades")

• Hire 381k units in 2H14; (ii) Quality assurance and delivery; (iii) Investments on projects sustainability; (iv) Improvements in the

construction process

Source : Ministério do Planejamento, Orçamento e Gestão 07/2014

Lauch Date Jul/2011 Aug/2012

Level 1 R$48 k - R$65 k R$57 k - R$76 k 17%

Level 2 and 3 R$65 k - R$170 k R$76 k - R$190 k 12%

MCMV 2MCMV 2

(after review)Unit Price D%

+300%

MCMV2

1,600,000

800,000

200,000

MCMV1

1,000,000

400,000

400,000

200,000

2,600,000

Level 1

Level 2

Level 3 The Government increased the price cap of 17% for the units within

the first level of the MCMV Program.

4x

2x

1x

• Brazil’s Federal Government has already shown that its focusing the Level 1 of MCMV, where the BZ housing deficit is heavily

concentrated.

• Such focus is clear when looking the breakdown of the Level 1 from MCMV 1 compared to MCVM 2 and its subsequent update.

7

8

MCMV Level 1 vs Development: Net FCF with no Sales Cancellations

Cash flow (traditional project vs MCMV Level 1 project)

-20%

-10%

0%

10%

20%

0Q -1Q 10Q 9Q 8Q 7Q 6Q 5Q 4Q 3Q 2Q 1Q -2Q -3Q -4Q

Traditional Development

MCMV Level 1 MCMV Level 1 Project Construction

• 100% of units sold to the Federal Government: No delinquency and sales cancelations from this segment, benefiting consolidated figures

• The Fist range of MCMV implies almost no working capital needs.

Land

acquisition Comercial

launch End of

construction

Hired to

Traditional Project Construction

Cash Exposure

MCMV Level 1

Development

9

MCMV: Risk of Discontinuation?

Even considering a potential reduction in the MCMV Level 1 program with a change in political parties, there should be little effect on Direcional.

There are few companies that can deliver high volumes of construction in MCMV Level 1:

MCMV Level 1: 34% of units launched in MCMV Level 1 were delivered

100% 81%

100%

100%

72%

34%

Contracted

100%

100%

Delivered

32%

Program

MCMV Program Phase 1 & 2: Status

(% of Units)

Low Share: Direcional represents 5% of MCMV Level 1 as a whole

Opportunity to increase its share

+500 bps

Source : Ministério do Planejamento, Orçamento e Gestão 07/2014

Level 3

Level 2

Level 1

Level 1 Contracted Units Direcional Share %

MCMV 1 & 2 1.619.400 84.065 5%

MCMV 1 482.741 7.391 2%

MCMV 2 1.136.659 76.674 7%

Very Low Income Projects:

# of projects: 37

# of Units: 88,705

Total PSV: R$ 5,594.8 MN

Average PSV: R$ 151.2 MN

Average Units: 2,397

Direcional’s Contracted MCMV Level 1

1st Phase MCMV 2nd Phase MCMV

# of projects: 3

# of Units: 7,391

Total PSV: R$ 380.3 million

# of projects: 34

# of Units: 81,314

Total PSV: R$ 5,214.7 million

+

Direcional`s Contracted MCMV – Level 1

(PSV million)

Direcional`s Contracted MCMV – Level 1

(Units)

+437%

9M14

1,004

2013

2,041

2012

1,647

2011

522

2010

380

+365%

9M14

14,836

2013

34,372

2012

23,234

2011

8,872

2010

7,391

10

Focus on Industrialization

Focus on Performance

5%6% 8% 3%

2Q14

88%

8% 4%

1Q14

88%

8% 4%

4Q13

85%

10%

3Q13

83%

11%

2Q13

78%

16% 6%

1Q13

75%

3Q14

89%

18% 7%

4Q12

70%

23%

7%

3Q12

60%

31%

9%

2Q12

56%

36%

9%

1Q12

50%

41%

8%

Units Under Construction by Construction Method

(% of Units)

1 Aluminum mold and concrete walls method

Industrial Construction¹ Concrete Blocks Conventional Structure (Concrete Pillars)

12

3Q14 3Q13 D %

Units Under Construction 79.163 68.216 16%

% of Industrialization (# of units) 89% 83% 6 p.p.

Construction Sites 61 59 3%

Average # of Units by Construction Sites 1.298 1.156 12%

# of Cities 19 15 27%

Construction Technology

45 days to develop 2 buildings with 5 floors and 4 apartments per floor

Video: http://www.direcional.com.br/ri

Aluminum Panels and Concrete Walls

13

Construction Inflation (INCC) Track Record

Brazilian construction cost index, base 100 = Jan/2003

100

110

120

130

140

150

160

170

180

190

200

210

220

230

240

250

260

jan/03 jan/04 jan/05 jan/06 jan/07 jan/08 jan/09 jan/10 jan/11 jan/12 jan/13

Labor

INCC

(Aggregated Index)

Materials

Source: BACEN and IBGE

14

Operating and Financial Highlights

16

Launches

Launches

(PSV - R$ million)

72231

1,004

1,306

+32%

-21%

9M14

303

9M13

1,646

1,311

335

3Q14

304

232

2Q14 3Q13

780

504

276

MCMV Level 1

Development

PSV launched in 3Q14 totaled R$ 304 million, attaining R$ 1.3 billion in 9M14 The Company launched three projects under the MCMV Level 1 in 3Q14, totaling a PSV of R$ 232 million 77% of the launches were related to MCMV level 1 projects

7%

8%

5%

Upper-Middle

Medium

Low-Income

RET1 3%

MCMV Level 1 77%

Launches by Economic Segment – 9M14

(% PSV)

17

Contracted Net Sales

Contracted Net Sales

(PSV - R$ million)

63126

+134%

-24%

9M14

1,304

1,004

300

9M13

1,715

1,311

404

3Q14

296

232

2Q14 3Q13

642

504

138

MCMV Level 1

Development

Net sales reached R$ 296 in 3Q14, attaining R$ 1.3 billion in 9M14 Net Sales were equivalent to the volume of launches in 9M14 VSO reached 63% in 9M14

9%

6%

Commercial

1% Upper-Middle

Medium

Low-Income 4%

RET1 3%

MCMV Level 1 77%

Sales by Economic Segment - 9M14

(% PSV)

18

Inventory

Inventory Track Record

(R$ million)

Finished Units

23%

<2012

24%

2012 23%

2013

7% 2014

23% 46%

Midwest 14%

North 40%

Southeast

Inventory by Region

(% PSV)

Inventory by Launch Period

(% PSV)

813 +12.1%

6%

3Q14

630

183

2Q14

765

596

169

4Q13

725

571

154

Under Construction

Finished Units

By the end of 3Q14, total inventory summed up R$ 813 million 46% of the inventory is located in the Southeast region

19

Deliveries

Commercial 13%

MCMV Level 1

53%

Medium

21% Low-Income

13% Upper-Middle 1%

Deliveries by Region and Economic Segment

(Over the past 12 months: % PSV)

Northeast 5%

Midwest

11%

North

47%

Southeast

37%

3Q14

LTM

1,526

721

805

2Q14

LTM

1,806

1,046

760

1Q14

LTM

1,676

1,001

674

4Q13

LTM

1,237

839

398

3Q13

LTM

1,020

905

115

2Q13

LTM

1,029

713

316

Deliveries – Track Record

(Over the past 12 months: R$ million)

Development

MCMV Level 1

Deliveries

(VGV-R$ million) +40%

9M14

1,014

568

447

9M13

726

686

40

3Q14

224

155 69

2Q14

189

87 102

3Q13

502

479

23

MCMV Level 1

Development

In 9M14, the Company delivered PSV of R$ 1.0 billion, representing a growth of 40% in relation to 9M13

Deliveries in the last 12 months (LTM) totaled R$ 1.5 billion. MCMV Level 1 projects represented 53% of PSV delivered during the period

Land Bank

61% are large scale projects (over 1,000 units)

55% are eligible for the MCMV Program

83% were acquired by physical or financial Swap

Average acquisition price of 12% over PSV

Land Bank by Segment

(% PSV)

Land Bank Track Record in 9M14

(R$ million in PSV)

Land Bank by Region

(% PSV)

Type of Payment

(% PSV)

Swap 83% Cash 17%

9%

Low-Income 26%

Upper-Middle

12%

Medium

52%

Commercial 19

R$ 8.5 Billion

52,680 units

6

Review of

Assumptions

/ Traded and

Cancellation

Launches 9M14

8,524 303

Acquired

Land Bank

1,451

2013

7,382

ES2%

AM9%

MG45%

RO1%

SP5%

PA7%

DF16%

GO1%

RJ14%

66%

47%31%

24%14%

9M14

878

2013

836

2012

457

2011

269

2010

117

% of Gross Revenue

Revenue from Services

(R$ million)

Cash Generation with Growth

1 - Cash Burn: measured by the change in net debt adjusted for dividend payments and shares buyback

2 – Numbers prior to 2012 are not adjusted in accordance with the new consolidation accounting practices (IFRS 11).

9M14

204

2013

76

2012

-183

2011

-176

2010

-283

2009

-95

Cash Burn¹,²

(R$ million)

Net Revenues - Track Record²

(R$ million)

CAGR +47%

9M14

1,284

2013

1,744

2012

1,449

2011

1,072

2010

782

2009

378

Financing Pass-through (“Repasses”)

(R$ million)

449

+39%

9M14

146

303

2013

633

273

360

2012

455

233

222

"Associativo"

SFH

Service 85%

Development 15%

Revenue to be Recognized

(% Total)

Services

R$ 3,7 Billion

Development

20

Financial Results

1. Adjusted for (non-cash) expenses with the stock option program

Adjusted¹ G&A

(R$ million)

6.5%

9M13

78

6.0%

3Q14

28

6.0%

2Q14

26

6.1%

3Q13

28

6.3%

+7%

+8%

9M14

84

% Net revenue

Adjusted¹ G&A

Selling Expenses

(R$ million)

10 14

3.4%

2Q14 3Q13

14

2.7% 2.2%

9M13

3.0%

3Q14

27 39

9M14

-3%

+45%

1.9%

% Net revenue Selling Expenses

561

3,286

2,725

556

3,189

+14%

3Q14 3Q13

3,745

Development

MCMV Level 1

Revenues to be Recognized

(R$ million)

Gross Revenue

(R$ million)

1,335

598

474

3Q14 2Q14

354

459

+5%

9M14

737

+2% 878 120

1,337

9M13

454

274

179

206

3Q13

258

464

MCMV Level 1

Development

21

23

Capital Structure

Capital Structure

(R$ million)

394

Net Debt

24% 18% 11%

Net Debt/Equity

314 201 CRI

13%

Working Capital

1%

SFH 60%

FINAME and Leasing

5%

Debentures 21%

Loans and Financing

(% of Debt)

3Q14

718

919

2Q14

643

956

3Q13

519

913 Cash

Debt

1. Cash flow generation: net debt variation net of dividends and share buyback programs .

3Q14

LTM

250

2Q14

LTM

205

1Q14

LTM

189

4Q13

LTM

76

3Q13

LTM

26

2Q13

LTM

-88

1Q13

LTM

-138

4Q12

LTM

-183

3Q12

LTM

-206

Cash Flow Generation (Cash Burn)¹ - Track Record

(Over the past 12 months : R$ million)

Debt – 3Q14

(R$ million)

Net Debt

Without SFH

351

Net Debt

201

Cash and

Cash

Equivalent

718

Debt

919

SFH

552

367

Benchmarking 2013 – Outstanding Results

Direcional: Adjusted for non-cash expenses (Stock-Options Program)

BISA3; -10%

CYRE3; 13%

EVEN3; 15%

EZTC3; 30%

GFSA3; 1%

HBOR3; 26%

MRVE3; 11%

PDGR3; -6%

DIRR3 16%

RDNI3; 12%

RSID3; 2%

TCSA3; 16%

VIVR3; -63%

SETOR; 7%

TRIS3; 6%

22%

27%

32%

37%

42%

47%

52%

-55% -35% -15% 5% 25% 45%

Net

Rev

enu

e LT

M/T

ota

l Ass

ets

Net Margin¹

Slow turnover and margin above averageSlow turnover and margin below average

Fast turnover and margin below average Fast turnover and margin above average

Company; ROE LTMSize: Leverage (Assets/Equity)

Color: Average Prince - Launched Units Last 24 months

Low - up to R$ 200k per unit

Medium - between R$ 200k and R$ 400k per unit

High - above R$ 400k per unit

Setor

18%

25

Contacts

Carlos Wollenweber CFO | IR Officer

Paulo Sousa IR Coordinator

Luiz Felipe Almeida IR Analyst

www.direcional.com.br

ri@direcional.com.br

(55 31) 3214-6200

(55 31) 3214-6450