2014 Financial Statements

Transcription

(Convenience Translation into English from the
Original Previously Issued in Portuguese)
EVEN Construtora e
Incorporadora S.A.
Individual and Consolidated
Financial Statements for the
Year Ended December 31, 2014 and
Independent Auditor’s Report
Deloitte Touche Tohmatsu Auditores Independentes
(Convenience Translation into English from the Original Previously Issued in Portuguese)
INDEPENDENT AUDITOR’S REPORT
To the Management and Shareholders of
EVEN Construtora e Incorporadora S.A.
We have audited the accompanying individual and consolidated financial statements of EVEN
Construtora e Incorporadora S.A. (“Company”), identified as Parent and Consolidated, respectively,
which comprise the balance sheet as at December 31, 2014, and the income statement, statement of
comprehensive income, statement of changes in equity and statement of cash flows for the year then
ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of the individual and
consolidated financial statements in accordance with accounting practices adopted in Brazil and the
consolidated financial statements in accordance with International Financial Reporting Standards
(IFRSs), applicable to real estate development entities in Brazil and approved by the Accounting
Pronouncements Committee (CPC), the Securities and Exchange Commission (CVM), and the
Federal Accounting Council (CFC), and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conduct our audit in accordance with Brazilian and International Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the Company’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by Management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Opinion on the Financial Statements Prepared in Accordance with
Accounting Practices Adopted in Brazil
In our opinion, the individual (Parent) and consolidated financial statements present fairly, in all
material respects, the financial position of EVEN Construtora e Incorporadora S.A. as at December
31, 2014, and its financial performance, its comprehensive income, and its cash flows for the year
then ended in accordance with accounting practices adopted in Brazil.
Opinion on the Consolidated Financial Statements Prepared in Accordance with
International Financial Reporting Standards (IFRSs), Applicable to Real Estate Development
Entities in Brazil, as Approved by the Accounting Pronouncements Committee (CPC), the
Brazilian Securities and Exchange Commission (CVM) and the Federal Accounting Council
(CFC).
In our opinion, the consolidated financial statements present fairly, in all material respects, the
consolidated financial position of EVEN Construtora e Incorporadora S.A. as at December 31,
2014, and its consolidated financial performance and its consolidated cash flows for the year then
ended in accordance with the IFRSs applicable to real estate development entities in Brazil, as
approved by the CPC, the CVM, and the CFC.
Emphas of Matter
As described in Note 2 to the financial statements, the individual and consolidated financial
statements have been prepared in accordance with accounting practices adopted in Brazil. The
consolidated financial statements prepared in accordance with IFRSs applicable to real estate
development entities in Brazil also consider OCPC 04 Application of Technical Interpretation ICPC
02 to Brazilian Real Estate Development Entities, issued by the CPC. Such technical guideline
addresses the recognition of real estate revenues and involves issues related to the meaning and
application of the concept of continuous transfer of risks, rewards and control on the sale of real
estate units, as detailed in note 2 to the financial statements. Our opinion regarding this matter is
unqualified.
Other Matters
Statements of Value Added
We have also audited the individual and consolidated statements of value added (“DVA”), for the
year ended December 31, 2014, prepared under the responsibility of the Company’s management,
the presentation of which is required by the Brazilian Corporate Law for publicly-traded companies
and as supplemental information for IFRSs, which do not require a presentation of DVA. These
statements were subject to the same auditing procedures described above and, in our opinion, are
fairly presented, in all material respects, in relation to the financial statements taken as a whole.
The accompanying financial statements have been translated into English for the convenience of
readers outside Brazil.
10
São Paulo, March 6, 2015
DELOITTE TOUCHE TOHMATSU
Auditores Independentes
11
Walter Dalsasso
Engagement Partner
EVEN CONSTRUTORA E INCORPORADORA S.A.
BALANCE SHEETS AS OF DECEMBER 31, 2014 AND DECEMBER 31, 2013
(In thousands of Brazilian reais - R$)
Company
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Financial assets
Trade receivables
Properties for sale
Taxes and contribibutions receivable
Other accounts receivable
Total current assets
NONCURRENT ASSETS
Trade receivables
Properties for sale
Current account with partners at the developments
Advances for future capital increase
Related parties
Other receivables
Investments
Property, plant and equipment
Intangible assets
Total noncurrent assets
Note
2014
47.814
1.600
27.936
3.600
11.253
92.203
876
1.619
26.137
2.326
15.428
46.386
6.474
714.792
1.640.415
745.778
8.965
88.582
3.205.006
48.153
717.394
1.880.015
707.074
7.015
68.651
3.428.302
2.047
38.151
306.717
3.751
12.001
2.756.332
19.375
8.313
3.146.687
2.047
33.162
356.044
8.711
873
2.424.553
17.696
7.984
2.851.070
373.269
1.165.565
39.673
13.805
667
24.962
22.947
24.884
9.302
1.675.074
395.553
819.565
33.380
62.417
612
5.185
19.746
31.269
8.664
1.376.391
4
5.a
6
5.a
6
17
7.f
27
7
8
9
2013
Consolidated
2014
2013
Company
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables
Payables for land acquisition
Borrowings and financing
Assignment of receivables
Debentures
Deferred taxes
Taxes payable
Advances from customers
Related parties
Allowance for losses on companies with equity deficiency
Dividends payable
Provisions
Other accounts payable
Total current liabilities
NONCURRENT LIABILITIES
Provisions
Taxes payable
Borrowings and financing
Debentures
Deferred taxes
Total noncurrent liabilities
EQUITY
Capital
Restricted stock in treasury
Transaction costs
Stock option plans
Earnings reserve
Company's owners
Noncontrolling interests in subsidiaries
Total equity
TOTAL ASSETS
3.238.890
The accompanying notes are an integral part of these financial statments
2.897.456
4.880.080
4.804.693
TOTAL LIABILITIES AND EQUITY
Note
Consolidated
2014
2013
2014
2013
2.158
115.272
163.915
17.568
15
3.296
3.722
59.948
22.500
2.848
391.242
2.976
5.563
115.998
19.026
15
3.288
15.008
67.186
25.000
823
254.883
64.430
37.357
510.406
2.691
163.915
42.809
38.376
4.434
11.114
59.948
22.500
59.450
1.017.430
68.031
38.087
464.947
7.884
115.998
43.084
45.433
14.101
11.194
67.186
25.000
84.886
985.831
10
14
12
11.a
5.b
11.b
15
33.034
165
545.317
141.498
4.662
724.676
15.409
165
343.844
294.987
654.405
88.145
85.950
8.732
1.054.453
1.735
141.498
42.940
19.702
1.443.155
60.302
52.689
9.559
1.007.635
2.578
294.987
50.038
25.198
1.502.986
18
18.2
1.683.266
(61.440)
(15.775)
30.298
486.623
2.122.972
2.122.972
1.083.266
(15.775)
26.518
894.159
1.988.168
1.988.168
1.683.266
(61.440)
(15.775)
30.298
486.623
2.122.972
296.523
2.419.495
1.083.266
(15.775)
26.518
894.159
1.988.168
327.708
2.315.876
3.238.890
2.897.456
4.880.080
4.804.693
10
11.a
5.b
11.b
12
13
17
27
7.a
18.4
14
18.3
STATEMENTS OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 2014 AND 2013
(In thousands of Brazilian reais - R$, except basic earnings per share)
Company
Note
Revenue
Cost of sales and services
19
20.a
(LOSS) GROSS PROFIT
OPERATING INCOME (EXPENSES)
Selling expenses
General and administrative expenses
Management fees
Other operating expenses, net
20.b
20.b
20.b e 27.b
22
OPERATING INCOME (LOSS) BEFORE PROFIT SHARING
OF SUBSIDIARIES AND FINANCE INCOME (COSTS)
SHARE OF PROFITS OF SUBSIDIARIES
Equity in subsidiaries
(Set up) reversal of allowance for losses in subsidiaries
2013
66.466
(109.253)
74.493
(103.414)
23
INCOME FROM OPERATIONS BEFORE INCOME TAX
AND SOCIAL CONTRIBUTION
24
24
NET INCOME
(42.787)
(28.921)
614.240
695.339
(10.307)
(156.524)
(7.387)
(28.465)
(202.683)
(10.377)
(147.524)
(7.424)
(21.381)
(186.706)
(177.576)
(186.196)
(7.387)
(34.962)
(406.121)
(163.392)
(172.950)
(7.424)
(22.845)
(366.611)
(245.470)
(215.627)
208.119
328.728
577.427
11.285
588.712
569.758
(7.898)
561.860
(451)
(451)
(103.176)
12.346
(90.830)
(68.722)
5.375
(63.347)
(34.939)
150.515
115.576
(38.620)
85.892
47.272
252.412
282.886
323.244
377.935
-
-
(56.445)
7.098
(53.514)
3.926
252.412
282.886
273.897
328.347
252.412
21.485
273.897
282.886
45.461
328.347
NET INCOME ATRIBUTABLE TO
Cmpany owners
Noncontrolling interests
EARNINGS PER SHARE ATRIBUTABLE TO COMPANY
OWNERS DURING THE YEAR - R$
Basic earnings per share
Diluted earnings per share
2.205.895
(1.591.655)
2.458.987
(1.763.648)
8
FINANCE INCOME (COSTS)
Financial income
Financial expenses
Current income tax and social contribution
Deferred income tax and social contribution
2014
Consolidated
2014
2013
25
25
1,0934
1,0934
1,2126
1,2126
1,0934
1,0934
1.935
1.935
1,2126
1,2126
EVEN CONSTRUTORA E INCORPORADORA S.A. AND SUBSIDIARIES
STATEMENT OF COMPREHENSIVE INCOME
Company
NET INCOME
OTHER COMPREHENSIVE INCOME
COMPREHENSIVE INCOME FOR THE YEARS
COMPREHENSIVE INCOME ATRIBUTABLE TO
Cmpany owners
2014
2013
Consolidated
2014
2013
252.412
282.886
273.897
-
252.412
-
282.886
-
328.347
-
273.897
328.347
252.412
21.485
273.897
282.886
45.461
328.347
STATEMENTS OF CHANGES IN EQUITY
Note
BALANCES AS OF DECEMBER 31, 2012
Transaction with noncontrolling shareholders:
Capital increase
Profit distribution
Other changes in noncontrolling interests
Stock option plan
Net income
Reserve legal
Dividend proposed - R$0.29 per share
Earnings retention
Capital
1.083.266
-
-
-
18.3
Transaction with noncontrolling shareholders:
Capital decrease
Profit distribution
Capital increase
Acquisition of treasury stock
Concession of treasury stock -Plan for Long Term Incentive - ILP
Stock options exercised
Stock option plan
Net income
Allocation of incomeReserve legal
Dividend proposed - R$0.26 per share
Earnings retention
Shareholders' equity of the Company's owners
Stock
Earnings reserves
Transaction
opyion
Earnings
Restricted
Treasury
costs
plan
Legal
retention
18.1
18.2
18.2
18.2
18.3
18.3
18.5
-
-
-
-
1.083.266
-
-
600.000
-
-
1.683.266
(18.124)
(18.124)
23.490
45.138
-
-
-
3.028
-
14.144
-
201.556
(15.775)
26.518
59.282
834.877
-
1.988.168
-
-
-
(600.000)
-
-
(62.330)
18.124
890
-
-
3.780
-
-
-
-
-
-
12.621
-
179.843
(43.316)
30.298
71.903
414.720
-
(15.775)
633.321
-
-
Total
(15.775)
-
Accumulated
profit
Noncontrolling
interests in
subsidiaries
282.886
(14.144)
(67.186)
(201.556)
1.769.440
3.028
282.886
(67.186)
-
Consolidated
shareholders'
equity
354.057
36.876
(109.407)
721
45.461
327.708
2.123.497
36.876
(109.407)
721
3.028
328.347
(67.186)
2.315.876
(4.518)
(48.152)
-
(4.518)
(48.152)
-
252.412
(62.330)
890
3.780
252.412
21.485
(62.330)
890
3.780
273.897
(12.621)
(59.948)
(179.843)
(59.948)
-
-
(59.948)
-
-
2.122.972
296.523
2.419.495
STATEMENTS OF VALUE ADDED
FOR THE PERIOD ENDED SEPTEMBER 30, 2014 AND 2013
Company
2014
REVENUES
Properties sold and services rendered
INPUTS ACQUIRED FROM THIRD PARTIES
Cost of sales and services
Materials, electric power, outside services and other
operating expenses
GROSS VALUE ADDED
Retentions
Depreciation and amortization
Amortization of goodwill in subsidiaries
VALUE ADDED CREATED BY THE COMPANY
VALUE ADDED RECEIVED IN TRANSFER
(Set up) reversal of allowance for losses in subsidiaries
Finance income – includes inflation adjustments
VALUE ADDED DISTRIBUTION
VALUE ADDED DISTRIBUTED
Salary and taxes
Employee profit sharing
Stock options plan
ILP
Management fees
Taxes, rates and contributions
Finance costs – includes inflation adjustments
Rentals
Dividends
Noncontrolling interests in retained earnings
2013
Consolidated
2014
2013
73.514
81.966
2.265.806
2.521.031
(30.949)
(22.809)
(1.513.350)
(1.683.043)
(73.429)
(104.378)
(67.278)
(90.087)
(245.738)
(1.759.088)
(223.070)
(1.906.113)
(30.864)
(8.121)
506.718
614.918
(8.294)
(75)
(6.492)
(61)
(20.663)
-
(13.966)
-
(39.233)
(14.674)
486.055
600.952
577.427
11.285
12.346
601.058
569.758
(7.898)
5.375
567.235
(451)
150.515
150.064
1.935
85.892
87.827
561.825
552.561
636.119
688.779
(140.179)
(22.500)
(3.780)
(5.987)
(7.387)
(17.681)
(103.176)
(8.723)
(59.948)
(192.464)
(561.825)
(131.735)
(25.000)
(3.027)
(7.424)
(26.955)
(68.722)
(6.813)
(67.186)
(215.699)
(552.561)
(159.010)
(22.500)
(3.780)
(5.987)
(7.387)
(119.896)
(34.939)
(8.723)
(21.485)
(59.948)
(192.464)
(636.119)
(148.434)
(25.000)
(3.028)
(7.424)
(131.114)
(38.620)
(6.813)
(45.461)
(67.186)
(215.699)
(688.779)
STATEMENTS OF CASH FLOWS
Company
2014
2013
CASH FLOW FROM OPERATING ACTIVITIES
Net income
Adjustments to reconcile net income to net cash(used in) generated by operating activities:
Goodwill amortization
Residual value of property, plant and equipment and intangible assets disposed of
Allowance for losses on investments
Stock options plan
Profit sharing
Warranties
Provision for civil and labor risks
Interest accrued
Consolidated
2014
2013
252.412
282.886
323.244
75
(577.427)
8.294
1.774
(11.285)
3.780
23.208
16.143
17.118
96.645
61
(569.758)
6.492
3.070
7.898
3.028
31.364
7.173
7.510
65.001
451
20.663
3.871
3.780
23.208
16.143
17.118
106.315
86
32.051
261.884
(384.704)
62.080
(319.687)
(4.989)
(1.274)
(6.954)
(817)
(1.458)
(34.657)
(221.192)
10.396
1.093
(944)
(974)
623
(37.424)
721
(149.647)
41.036
(1.950)
(28.422)
(3.601)
27.113
(9.667)
(8.159)
(6.036)
(56.641)
(52.670)
292.977
(5.327)
1.474
19.118
(8.957)
(29.333)
3.833
(7.755)
(9.556)
(10.071)
(71.810)
133.313
Interest paid
Income tax and social contribution paid
Net cash generated by (used in) operating activities
(41.252)
(262.444)
(36.838)
(186.484)
(41.254)
(56.445)
195.278
(36.741)
(53.514)
43.058
CASH FLOW FROM INVESTING ACTIVITIES
Increase (decrease) of financial assets at fair value
Purchase of property, plant and equipment and intangible assets
Sale of investments
Dividends received from subsidiaries
Advances on future capital increase
Net cash generated by (used in) investing activities
(46.938)
(12.076)
(521.236)
766.808
49.326
235.884
39.578
(12.773)
(429.947)
584.191
(34.838)
146.211
2.602
(18.787)
(16.390)
12.738
(10.083)
(29.920)
(202.318)
(26.475)
(3.767)
19.886
(212.674)
330.000
(179.782)
150.218
250.000
(145.414)
104.586
1.080.123
(1.158.479)
(78.356)
1.111.897
(896.059)
215.838
4.968
(61.440)
(67.186)
26.560
(3.294)
(61.018)
40.274
(55)
(61.440)
(67.186)
(207.037)
1.301
(61.018)
156.121
0
(41.679)
(13.495)
-
48.153
6.474
(41.679)
61.648
48.153
(13.495)
(Increase) decrease in operating assets:
Trade receivables
Properties for sale
net of portions classified in liabilities
Prepaid taxes
Other assets
Trade payables
Advance from customers
Taxes and contributions
Other liabilities
Noncontrolling interests in subsidiaries' equity
CASH FLOW FROM FINANCING ACTIVITIES
From third parties:
Increase of discounting of receivables
Payment of discounting of receivables
From shareholders/related parties:
Receipts from (payments to) related parties, net
Aquisições de ações em tesouraria, líquido de opções exercidas
Dividends payment
Net cash (used in) generated by financing activities
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
At beginning of year
At end of year
19
(1.799)
-
-
377.935
(1.935)
13.966
3.270
3.028
31.364
7.173
7.510
66.993
NOTES TO THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(Amounts in thousands of Brazilian reais - R$)
1.
GENERAL INFORMATION
EVEN Construtora e Incorporadora S.A. (“Company”) is a publicly traded corporation
headquartered in the city of São Paulo, State of São Paulo, and its shares are traded on
BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros - Novo Mercado (São Paulo
Stock and Mercantile Exchange) under ticker symbol EVEN3, being controlled by
FIP GENOA and the members of the Terepins family.
The Company and its subsidiaries (“Group”) are engaged mainly in developing residential
properties and holding interests in other companies.
The Company carries out the development of real estate projects through subsidiaries
organized specifically for that purpose, whether severally (wholly-owned subsidiary) or
together with other partners. The subsidiaries share the Company’s corporate, managerial and
operating structures and costs.
The Company is associated with the Market Arbitration Panel as set forth in the arbitration
clause included in its bylaws.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied to the preparation of these individual and
consolidated financial statements are described below. These policies have been applied
consistently over all reported periods, except as otherwise indicated.
2.1.
Basis of preparation of financial statements
The financial statements have been prepared based on the historical cost and financial
assets and financial liabilities (including derivatives) are measured at fair value through
profit or loss.
The preparation of financial statements requires the use of certain critical accounting
estimates and the exercise of judgment by the Company’s management in the process of
application of the Group’s accounting policies. The areas involving a higher degree of
judgment and with higher complexity, as well as those where assumptions and estimates
are significant to the consolidated financial statements, are disclosed in note 4.
10
a) Consolidated financial statements
The consolidated financial statements have been prepared pursuant to accounting
practices adopted in Brazil and also International Financial Reporting Standards
(“IFRSs”) applicable to real estate development entities in Brazil, as approved by the
Accounting Pronouncements Committee (CPC), the Securities and Exchange
Commission (CVM), and the Federal Accounting Council (CFC), which also
consider technical guideline OCPC 04 Application of Technical Interpretation ICPC
02 to Brazilian Real Estate Development Entities issued by the CPC, which address
the recognition of revenue in this industry, as well as certain matters related to the
meaning and application of the concept of continuous transfer of risks, rewards and
control in the sale of real estate units by real estate developers in Brazil, as basis for
the recognition of revenue, as described in note 2.19.
b) Individual financial statements
The Company’s individual financial statements have been prepared in accordance
with the Brazilian accounting practices issued by the CPC and approved by the
CVM, and are disclosed together with the consolidated financial statements.
2.2.
Consolidation
2.2.1. Consolidated financial statements
The accounting policies below are applied in the preparation of the consolidated
financial statements.
a)
Subsidiaries
Subsidiaries are all entities (including special purpose entities) over which
the Group has the power to govern the financial and operating policies,
generally accompanied by equity interest of more than one half of the voting
rights (voting capital). Subsidiaries are consolidated from the date on which
control is transferred to the Group and they are unconsolidated from the date
that control ceases.
All intragroup transactions, balances and unrealized gains are eliminated on
consolidation. Unrealized losses are also eliminated, unless the transaction
provides evidence of impairment of the asset transferred. The subsidiaries’
policies accounting are changed and their individual financial statements are
adjusted, when necessary, to ensure the consistency of the financial data to
be consolidate with the Group’s accounting polices.
b)
Transactions and noncontrolling interests
The Group treats transactions with noncontrolling interests as transactions
with equity owners of the Group. For acquisitions of noncontrolling
interests, the difference between any consideration paid and the acquired
portion of the carrying amount of the subsidiary's net assets is recorded in
equity. Gains or losses on disposals to noncontrolling interests are also
recorded in equity.
11
When the Group ceases to have control, any retained interest in the entity is
remeasured at fair value, and the change in the carrying amount is
recognized in income.
2.2.2. Individual financial statements
In the individual financial statements, prepared in accordance with the accounting
practices adopted in Brazil, subsidiaries are accounted for by the equity method
of accounting. The same adjustments are made both in the individual financial
statements and in the consolidated financial statements to reach the same net
income and shareholders’ equity attributable to the Company’s shareholders.
2.3.
Segment information
The information for operating segments are presented in a manner consistent with the
internal reporting provided to the chief operating decision maker. The chief operating
decision maker, who is responsible for allocating resources and assessing performance
of the operating segments, is the executive committee, which is also responsible for
making the Company’s strategic decisions.
2.4.
Foreign currency
The Group's companies operate in the same economic environment, using the Brazilian
real (R$) as their functional currency, which is also the presentation currency of the
parent company's individual financial statements and the Group's consolidated financial
statements. In addition, the Group does not carry out significant transactions in foreign
currency.
2.5.
Include cash, bank deposits, high-liquid investments readily convertible into a known
cash amount, and which are subject to an immaterial risk of change in value. Bank
overdrafts are disclosed in the balance sheet in line item ‘borrowings and financing’, in
current liabilities.
2.6.
Financial assets
2.6.1. Classification
The Company classifies its financial assets in the following categories: financial
assets at fair value trough profit or loss and loans and receivables. Classification
depends on the purpose for which the financial assets were acquired.
Management determines the classification of the financial assets on initial
recognition.
a)
Financial assets calculated at fair value through profit or loss
The financial assets measured at fair value through profit or loss are financial
assets held for trading. A financial assets is classified in this category is
acquired principally for the purpose of selling it in the near term. Derivatives
are also categorized as held for trading unless they have been designated as
hedging instruments. Assets in this category are classified in as current assets
12
(liabilities).
b)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. They are
included as current assets, except those with maturities exceeding 12 months
after the end of the reporting period (which are classified as noncurrent
assets). The Company's loans and receivables comprise intragroup loans,
borrowings and financing, debentures, assignment of receivables, trade and
other receivables, cash and cash equivalents, and short-term investments.
2.6.2. Recognition and measurement
Regular way purchases and sales of financial assets are recognized on the trade
date, i.e., on the date the Group undertakes to buy or sell the asset. Financial
assets at fair value through profit or loss are initially recognized at their fair value
and transaction costs are expensed in the income statement. Financial assets are
written off when the rights to receive cash flows from investments have expired
or been transferred; in the latter case, provided that the Group has significantly
transferred all the risks and rewards of ownership. Financial assets measured at
fair value through profit or loss are subsequently recognized at fair value. Loans
and receivables are accounted for at amortized cost, using the effective interest
rate method.
Gains or losses arising from changes in the fair value of financial assets measured
at fair value through profit or loss are presented in the income statement in line
item ‘Finance income (costs)’ in the period when they occur.
The fair values of publicly quoted investments are based on the current purchase
price or the best estimate of this amount. The main pricing sources are: ANBIMA
(Brazilian Financial and Capital Markets Association), BMF&BOVESPA,
CETIP S.A. (Brazilian clearinghouse), the SISBACEN (Central Bank’s
information system), and FGV (a university).
Committed transactions consist of transactions with a resale commitment
maturing on a future date, which is prior or equal to the maturity date of the
securities that are the object of the transaction, valued daily in accordance with
the market rate for the transaction.
2.6.3. Offset of financial instruments
Financial assets and financial liabilities are offset and the net amount is recorded
in the balance sheet when there is a legally enforceable right to set off recognized
amounts and the intent to either settle them on a net basis, or to recognize the
asset and settle the liability simultaneously.
2.6.4 Impairment of financial assets
The Group assesses at the end of each reporting period whether there is objective
evidence that a financial asset or a group of financial assets is impaired. A
financial asset or a group of financial assets is impaired and impairment losses
are incurred if, and only if, there is objective evidence of impairment as a result
13
of one or more events that occurred after the initial recognition of the asset (a
“loss event”) and that loss event (or events) has an impact on the estimated future
cash flows of the financial asset or group of financial assets that can be reliably
estimated.
In the specific case of trade receivables, Management considers as objective
evidence of impairment the existence installments overdue for more than 180
days from customers who signed contracts without lien of the real estate related
to units which have already been delivered, since the ownership of the real estate
is effectively transferred to the customer only if they comply with the contractual
obligations. Therefore, past-due receivables related to units under construction or
units delivered with lien are not considered to be objective evidence of
impairment.
The loss amount is measured as the difference between an asset's carrying amount
and the present value of estimated future cash flows (excluding future credit
losses that have not been incurred) discounted at the financial asset’s original
effective interest rate. The carrying amount of the asset is reduced and the loss is
recognized in the income statement.
If, in a subsequent period, the amount of the impairment loss decreases and the
decrease can be related objectively to an event occurring after the impairment
was recognized (such as an improvement in the debtor’s credit rating), the
previously recognized impairment loss is reversed and recognized in the income
statement.
2.7.
Derivatives and hedging activities
The Group had only one hedging transaction in the entire reporting period outstanding at
December 31, 2014 (see note 11.a)).
The gains or losses related to the effective portion of swaps are recognized in the income
statement as ‘Finance income (costs)’.
The Group does not have other derivatives, whether or not recognized as assets or
liabilities in the balance sheet, such as futures or options (commitments to purchase or
sell foreign currencies, indices or equity), swaps, forwards, or any other derivative,
including the so-called "exotic" derivatives.
2.8.
Trade receivables
Units are sold mainly during the launch and construction phases of projects. In these
cases, trade receivables are recognized by applying the percentage of completion (POC)
on the revenue from units sold, adjusted according to the terms of the sales contracts;
thus trade receivables are determined by the amount of accumulated revenue recognized
less received installments. When the amount of received installments is higher than the
recognized accumulated revenue, the balance is classified a ‘Advances from customers’.
Trade receivables are initially recognized at fair value and subsequently measured at
amortized cost using the effective interest method, less the allowance for impairment of
trade receivables.
14
For installment sales of completed units, income is fully recognized at the time the sale
is performed, regardless of the term for receipt of the contractually agreed amount.
When the construction is completed, trade receivables are subject to interest and
inflation adjustment, which are allocated to finance income when earned, on the an
accrual basis.
If the collection term of the amount equivalent to the receivables corresponds to one year
or less, receivables are classified in current assets. Otherwise, the exceeding portion is
disclosed in noncurrent assets.
2.9.
Properties for sale
Properties ready for sale are carried at construction cost, which does not exceed their net
realizable value. In the case of properties under construction, the inventory portion
represents the cost incurred in the unsold units.
Cost comprises the cost of land acquisition/barter, expenditures on project design and
legalization, materials, labor (own or outsourced), and other construction-related costs,
including the finance cost of the capital invested (financial charges on payables for the
purchase of land and on financing, incurred during the construction period).
Net realizable value is the estimated selling price in the ordinary course of business, less
estimated completion costs and estimated costs to sell.
Land is carried at cost, plus any financial charges generated by the related payables. In
the case of the barter for units to be built, the cost corresponds to the estimated cash
sales price of the units to be built and delivered. Land is only registered on the
formalization of the title deed, and is not recognized in the financial statements during
the negotiation process, regardless of the probability of success or progress of the
negotiation.
2.10. Intangible assets
Software
Software licenses purchased are capitalized based on the costs incurred to purchase the
software and make it ready for use. These costs are amortized over their estimated useful
lives from three to five years.
The costs on software maintenance are recognized as expenses, when incurred.
2.11. Property, plant and equipment
The Company leases from third parties the offices where its head office and the branches
are located.
Property, plant and equipment are stated at historical cost, net of depreciation calculated
on a straight-line basis, at the following annual rates:
15
Years
Leasehold improvements:
Facilities
Machinery and equipment
Furniture and fixtures
Computers
Sales booths
2
10
10
10
5
(*)
(*) Expenditures incurred and directly associated with the construction of sales booths
and model apartments have essentially tangible features and, therefore, when their
estimated useful lives exceed one year they are classified as ‘Property, plant and
equipment’ and depreciated over the estimated useful lives, while the corresponding
depreciation charge is allocated to ‘Selling expenses’. This usually occurs when the
project is divided into phases and the sales booth is used in several launches of each
phase. As regards one-phase projects, the estimated useful life is not expected to be
higher than one year and the expenditures are, therefore, allocated directly to selling
expenses as incurred, together with the other costs on advertising, marketing and
other related activities, regardless of the allocation of project-related revenues.
Since historically the Group does not sell its property, plant and equipment items,
the residual value of assets is deemed to be nil. The useful lives are reviewed, and
adjusted if appropriate, at the end of each year. In the specific case of sales booth, if
the sale is completed before to the estimated period or is dismantled, the projectrelated residual value is immediately derecognized.
The carrying amount of an asset is immediately derecognized at its recoverable
value if the carrying amount of the asset is higher than its estimated recoverable
value (note 2.12).
2.12. Impairment of nonfinancial assets
Assets that are subject to depreciation or amortization are tested for impairment
whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognized when the asset's carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair
value less costs to sell and value in use. For impairment test purposes, assets are grouped
at the lowest levels for which there are separately identifiable cash flows (cashgenerating units, or CGUs). The Group’s management concluded that there is no need to
recognize impairment losses in 2014 and 2013.
2.13. Trade payables and payables for acquisition of real estate
Trade payables are obligations to pay for goods or services that have been acquired from
suppliers in the ordinary course of business. Payables for the acquisition of real estate
are related to the acquisition of land for the real estate development projects. Trade
payables and payables for the acquisition of real estate are classified as current liabilities
if payment is due within one year or less. Otherwise, they are presented as noncurrent
liabilities.
They are initially recognized at fair value and subsequently measured at their amortized
16
cost using the effective interest rate method. In practice, they are usually recognized at
the related invoice/contract amount.
2.14. Borrowings, financing and debentures
Borrowings are initially recognized at fair value, less transaction costs incurred, and
subsequently stated at amortized cost. Any difference between the amounts raised (less
transaction costs) and the settlement amount is recognized in the over the period
borrowings remain outstanding, using the effective interest method, as a supplementary
portion of the project cost (qualified asset under construction), or in the income
statement.
Borrowings are classified as current liabilities, unless the Group has an unconditional
right to defer settlement of the liability for at least 12 months after the balance sheet
date.
The debentures are nonconvertible and are recognized similarly to borrowings and
financing.
2.15. Provisions
Provisions are recognized when the Company has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of funds will be
required to settle the obligation, and the amount can be reliably estimated.
Where there are a number of similar obligations, the likelihood that they will be settled
is determined by taking into consideration the class of obligations as a whole. A
provision is recognized even if the likelihood of an outflow related to any individual
item included in the same class of obligations is small.
Provisions are measured at the present value of the expenditures expected to be required
to settle the obligation using a pretax rate that reflects current market assessments of the
time value of money and the risks specific to the obligation. The increase in the
obligation due to the passage of time is recognized as finance costs.
2.16. Income tax and social contribution
Income tax and social contribution expenses include current and deferred taxes, both
recognized in the income statement.
Current and deferred income tax and social contribution are calculated as prescribed by
tax laws already enacted or substantially enacted at the end of the reporting period.
Management periodically reviews the positions assumed by the Group in the income tax
returns in cases where the applicable tax regulation gives rise to different interpretations
and, where appropriate, recognizes provisions based on the estimated amounts payable
to tax authorities.
In the entities taxed based on actual taxable income, income tax and social contribution
are calculated at the regular rates of 15%, plus a 10% surtax, and 9%, respectively, on
loss before income tax and social contribution, and are adjusted according to the criteria
established by the prevailing tax law.
17
As permitted by the tax law, certain subsidiaries opted for taxation based on deemed
income. For these entities, income tax and social contribution are calculated at the rates
of 8% and 12%, respectively, on gross revenue plus total financial income (32% when
revenue results for the provision of services and 100% for finance income), upon which
regular income tax and social contribution rates are levied.
Additionally, also as permitted by the tax law, certain subsidiaries have made the
permanent option for the Special Taxation Regime (RET), adopting the earmarked assets
system, under the income tax and social contribution are calculated at the rate of 1.92%
on gross revenue (4% also considering the payments to the taxes on revenues PIS and
COFINS). On December 28, 2012, Provisional Act 601 amended the RET tax rates, and
beginning January 1, 2013 the income tax and social contribution tax rates is 1.92% and
the COFINS and PIS tax rate is 2.08%.
Significant portions of the Company’s project-related assets are part of real estate
development equity segregation structures, as permitted by Law 10931/04.
Deferred income tax and social contribution are recognized under the liability method on
temporary differences arising from differences between the tax basis of assets and
liabilities and their carrying amounts in the financial statements. One of the main
differences is the calculation criterion for revenues under the tax (cash basis) and
corporate (POC) regime.
Deferred income tax and social contribution assets are recognized only to the extent that
it is probable that future taxable income will be available, against which tax losses and
temporary differences can be offset.
Deferred income tax assets and liabilities are offset when there is a legally enforceable
right to offset current tax assets against current tax liabilities and when the deferred
income tax assets and liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities where there is an
intention to settle the balances on a net basis.
2.17. Employee benefits
a) Pension obligations
The Group grants a defined contribution pension plan, managed by private entities,
which is a VGBL (cash value life insurance) plan, to employees and officers who
meet the eligibility criteria. The Group has no further payment obligation once the
contributions have been paid. The contributions are recognized as employee benefit
expenses, when due. Contributions made in advance are recognized as an asset to the
extent that a cash reimbursement, or reduction of future payments, is available.
b) Employee and management benefits
The Group offers a bonus plan to its employees and officers, which is recognized
during the year, and the amount is reviewed to the extent it can be even more reliably
estimated by the Company's management as yearend approaches.
c) Share-based compensation
18
The Company offers a share-based compensation plan, to be settled in Company
equity, under which the Company receives services is exchange for stock options.
The fair value of options granted is recognized as an expense over the vesting period
(during which certain vesting terms and conditions must be met), as a balancing item
to equity, on a prospective basis.
At the end of the reporting period, the Company reviews the estimated number of
options which will be acquired based on the related terms. The Company recognizes
the impact of the review of the initial estimates in the income statement, as a
balancing item to equity.
d) Profit sharing
The Group recognizes a profit sharing liability and expense in the income statement
based on a formula that takes into consideration a plan for the attainment of financial
and operational targets. The Group recognizes a provision during the year, as the
indicators of the targets to be achieved show that it is probable that profit sharing
bonuses will be paid and their amounts can be reliably estimated.
2.18. Share capital
Exclusively represented by common shares classified as equity. Incremental costs
directly attributable to the issuance of new shares or stock options are stated in equity as
a deduction from the proceeds.
2.19. Revenue recognition
Revenue consists of the fair value of the consideration received or receivable from the
sale of products and services in the normal course of the Group’s business. Revenue is
presented net of taxes, terminations, rebates and discounts, as well as after the
elimination of intragroup sales.
The Group recognizes revenue at the fair value of sales contracts when specific criteria
are met, as disclosed below:
a) Revenue from sale of properties
For the sales of uncompleted units of launched projects, which are no longer subject
to the effects of the related termination clause contained in the development deed, the
Group observes the procedures and standards established by CPC 30 related to the
recognition of revenue from the sale of properties with a continuous transfer of the
most significant risks and rewards incidental to ownership. The classification of the
sales agreements of the projects, for the purposes of applying said standard, is based
on OCPC 04, which addresses the application of technical interpretation (ICPC 02)
to Brazilian real estate development companies.
Based on said standards and taking into consideration the applicable accounting
procedures established by OCPC 01 (R1), the following procedures are adopted for
the recognition of revenue from sales of units under construction:

19
The costs incurred on units sold (including land) are fully allocated to the profit
or loss under the percentage-of-completion method.

The percentage of costs incurred on units sold (including land) in relation to total
budgeted costs (POC) is determined, and this percentage is applied to the fair
value of the revenue from the units sold (including the fair value of barters for
land), adjusted according to the terms of the sales contracts, thereby determining
the amount of revenue to be recognized. The amount of sales revenue calculated,
including inflation adjustment on trade receivables based on the National Civil
Construction Index (INCC) variance, net of installments already received
(including the fair value of barters for land), is classified as trade receivables or
advances from customers, as applicable.

The fair value of revenue from units sold is calculated at present value based on
the interest rate of government bonds indexed to the Extended Consumer Price
Index (IPCA), from the date the agreement is signed to the date scheduled for the
delivery of the completed unit to the committed purchaser (from that date on, the
receivables will be subject to interest of 12% per annum plus inflation
adjustment). The interest rate paid by government bonds indexed to the IPCA is
consistent with the nature, term and risks of similar transactions under market
conditions, and tis average rate for the year ended December 31, 2014 was 6.41%
per year (5.91% per year in 2013). Subsequently, over time, interest is
incorporated into the new fair value for the calculation of the revenue to be
allocated, on which the POC applied.
Charges related to sales commissions are the responsibility of the property buyer and
are not included in the sales price.
If circumstances arise that may change the original revenue estimates, costs or extent
of completion period, initial estimates are revised. These revisions may result in
increases or decreases in estimated revenues or costs and are reflected in the profit or
loss for the year in which the Management became aware of the circumstances that
result is such revision.
The amounts received from sales of uncompleted units of launched projects, which
are no longer subject to the effects of the termination clause contained in the
development deed are classified as advances from customers.
In the case of sales of completed units, sales revenue is recognized upon delivery of
the completed unit, when the most significant risks and rewards of ownership are
transferred.
After the delivery of the units sold, the inflation adjustment of trade receivables is
calculated by suing the General Market Price Index (IGP-M) or the Extended
Consumer Price Index (IPCA) variance, plus interest of 12% per year, calculated on
a pro rata basis. In this phase, the inflation adjustment and interest are recorded as
finance income using the effective interest method and are no longer part of the basis
for the calculation of sales revenue.
b) Service revenue
The parent company sells construction management services to its subsidiaries. The
remaining income in the consolidated financial statements corresponds to the portion
not eliminated on the proportionate consolidation of the jointly controlled entities.
20
Revenue from services is recognized in the period when the services are provided, on
a straight-line basis to recognize the revenue proportionately to the costs incurred on
the real estate project that is being managed.
c) Finance income
Financial income is recognized according to the period elapsed, under the effective
interest method.
From the time the unit is completed, trade receivables are subject to inflation
adjustment plus interest, which are allocated, over time, to finance income.
2.20. Dividend distribution
The distribution of dividends to the Company’s shareholders is recognized as a liability
in the Company’s financial statements at the end of the year, according to its bylaws.
Any amounts in excess of the mandatory minimum dividend can only be accrued on the
date they are approved by the shareholders at a General Meeting.
2.21. Earnings reserves
The legal reserve is calculated as 5% of profit for the year, as prescribed by Law
6404/76.
The earnings retention reserve refers to the remaining balance of retained earnings,
maintained to fund business growth project as established in the Company's investment
plan, pursuant to the capital budget proposed by the Company's management to meet its
assumed commitments (note 27.a)), for approval at the Annual Shareholders’ Meeting.
2.22. Leases
In the leases entered into by the Company, a significant portion of the risks and rewards
incidental to ownership are retained by the lessor, and are, therefore, classified as
operating leases. Operating lease payments (net of any incentives received from the
lessor) are recognized in profit or loss on a straight-line basis over the lease term. There
are no lease agreements classified as finance leases.
2.23. Statement of value added (DVA)
The purpose of this statement is to disclose the wealth created by the Company and its
distribution during a certain reporting period, and is presented by the Company, as
required by the Brazilian Corporate Law, as an integral part of its individual financial
statements, and as additional disclosure of the consolidated financial statements, since
this statement is not required by IFRSs.
The statement of value added was prepared based on information obtained in the
accounting records that serve as basis for the preparation of financial statements and in
accordance with the provisions of CPC 09 - Statement of Value Added. The first part of
the DVA presents the wealth created by the Company, represented by revenues (gross
sales revenue, including taxes levied thereon, other income and the effects of the
allowance for doubtful accounts), inputs purchased from third parties (cost of sales and
purchases of materials, energy and outside services, including the taxes included upon
21
purchase, the effects of impairment and recovery of assets, and depreciation and
amortization) and the value added received from third parties (share of profits (losses) of
subsidiaries, finance income and other income). The second part of the DVA presents
the distribution of wealth among employees, taxes and contributions, compensation to
third parties and shareholders.
2.24. New standards and interpretations and revised in 2014
Pronouncement
Description
Amendments to IFRS 10 - Consolidated
Accounting statements
Evaluation of subsidiaries at fair value and its impacts on the
income statement.
Amendments to IFRS 12 - Disclosure of Interests
in Other Entities and IAS 27 - Separate
Accounting statements
New disclosure requirements for investment entities.
Amendments to IAS 32 - Financial Instruments:
Presentation
Clearance on the requirements related to offsetting financial
assets with financial liabilities.
Amendments to IAS 36 - Impairment of NonFinancial Assets
Disclosure of the recoverable amount of a cash-generating unit
to "goodwill" or other intangible assets.
Amendments to IAS 39 - Financial
Instruments: Recognition and
Measurement
Novation Derivatives and continuity of accounting
"hedge".
The Company's management assessed these new standards and interpretations and
conclued that there were no impact from the adoption of these new standards.
2.25. New and revised standards and interpretations issued and not yet adopted
The Company did not adopt the new and revised IFRSs below already issued but not yet
effective:
Pronouncement
Description
Duration
Exercises initiated after
January 1, 2018.
IFRS 9 - Financial
Instruments
Project to replace IAS 39 - Financial Instruments:
Recognition and Measurement.
IFRS 15 - Revenue with
customers
Convergence of the IASB ("International Accounting
Standards Board") and FASB ("Financial Accounting
Standards Board") on revenue recognition.
Exercises initiated at or afetr
January 1, 2017.
Amendments to IFRS 11 /
CPC 19 (R2) - Business
combiantion
Accounting for business cominations
January 1, 2016.
IAS 38 / CPC 04 (R1) Fixed Assets
Clearance of the methods of depreciation and
amortization acceptable
January 1, 2016.
On May, 28 2014, the IASB and the FASB jointly issued IFRS 15 - Revenue from
22
customers in order to clarify and also converge revenue recognition in the real estate
transaction, the Company awaits the issue of normative corresponding to analysis of the
possible effects on its accounting statements.
The CPC has not yet issued the pronouncements and amendments to the new and revised
IFRSs above. Due to the commitment of the CPC and the Brazilian Securities
Commission - CVM keep the set of standards issued based on the updates made by the
IASB, it is expected that these pronouncements and amendments be issued by CPC and
approved by CVM up to date become effective.
3.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS
Accounting estimates and judgments are continually assessed and are based on background
experience and several other factors, including expected future events, that are construed as
reasonable in the circumstances.
3.1.
Critical accounting estimates and assumptions
Based on assumptions, the Company makes forward-looking estimates. By definition,
the resulting accounting estimates may differ from actual results. The estimates and
assumptions that represent a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next year are related to the
recognition of revenue.
The Group uses the Percentage of Completion (POC) method to account for its contracts
for the sale of units of the real estate project and provision of services. Use of the POC
method requires the Company to estimate the costs to be incurred up to the completion
of the construction and delivery of the completed real estate units in each real estate
development project, to calculate the ratio to costs already incurred. If the budgeted
costs to be incurred were 10% higher than Management's estimates, the revenue
recognized for the year would decrease by R$94,700; if the difference were 10% lower
than Management's estimates, the revenue recognized for the year would increase by
R$106,303.
3.2.
Critical judgment in applying the Group’s accounting policies
a) Continuous transfer of risks and rewards
The Group follows the guidelines of OCPC 04 to determine when the most
significant risks and rewards of the ownership of the real estate units sold are
transferred to the buyers. This determination requires significant judgment, and thus
the Group assessed the topics discussed by a taskforce coordinated by the CVM,
where the Group was represented by the Brazilian Association of Publicly-Held
Companies (ABRASCA), culminating in the presentation of a draft of guideline CPC
04, which was approved and has governed on the application of technical
interpretation ICPC 02 to Brazilian real estate development entities.
Had not OCPC 04 been issued and had the conclusion been that the most significant
risks and rewards inherent in the ownership of real estate units are not continually
transferred to the buyers during the construction of the real estate development
23
project, the greatest impact would have been a temporary reduction of equity and
profit for the year or period, as the recognition of revenue and the respective costs
and taxes would occur upon delivery of the units.
b) Revenue recognition - responsibility for the obtaining and
paying brokerage commission
As referred to in note 2.19.a), the buyer of the property is responsible for the charge
related to sales commission, which is not part of the agreed sales price or the related
revenue recognized by the Company. The Company's management has been
monitoring, together with their legal counsel, the position of the Public Prosecution
Office that is requiring that brokers clearly and accurately disclose in the proposals
for the purchase of property that the buyer is not liable for the payment of the
brokerage commission, and has already entered into a Policy Adjustment
Agreements (TAC) with a broker to determine the possible impacts on the broker’s
operations and related disclosures in its financial statements.
c) Provisions - compensation for the late delivery of real estate units
In mid-2011, after the Policy Adjustment Agreement (TAC) signed by the São Paulo
Residential and Commercial Real Estate Purchase, Sale, Rental and Management
Companies Association (SECOVI/SP) with the Public Prosecution Office, the
Company and its subsidiaries started to include in their sales contracts a clause
informing, in a clear and precise manner, the estimated work duration and the
tolerance limit of 180 days after the estimated deadline for construction completion,
and also the following penalties: (i) liquidated damages equal to 2% of the amount
paid until then by the buyer, adjusted based on the inflation adjustment index set
forth in the contract; and (ii) late payment fine equal to 0.5% per month on the total
amount paid, adjusted as set forth in the agreement and accruing after the end of the
tolerance period. The fine amount, where applicable, will be calculated upon delivery
of the units and paid upon the issuance of the final real estate purchase deed or 90
days after receipt of the unit, whichever occurs first.
The Company and its subsidiaries have been monitoring, together with their legal
counsel, the lawsuits filed by each individual buyer who has received his or her
purchased unit under construction after the referred tolerance period, claiming said
compensation, as well as seeking damages for pain and suffering and economic
losses, and have determined the recognition of specific provisions therefor based on
individual analyses of the lawsuits (note 14). Additionally, they are also monitoring
the changes in industry regarding this issue to continuously reassess the impacts on
their operations and related disclosures in the financial statements.
On December 31, 2014 and 2013, the Company recorded no provision to cover such
risks as to irrelevance.
24
4.
CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS
Company
2014
2013
Cash and cash equivalents:
Cash and banks
-
Consolidated
2014
2013
-
6,474
48,153
Short-term investments
Short-term investments consist basically of exclusive investment fund assets and are broken
down as follows.
Company
2014
2013
Consolidated
2014
2013
(adjusted)
Short-term investments:
Investment fund - variable income (a)
Investment fund - “stone” (i)
47.814
47.814
- 182,746
876 532,046
876 714,792
124,335
593,059
717,394
The Company’s and its subsidiaries’ investments in investment funds yield interest
ranging from 100.11% to 103.03% of the interbank deposit rate (CDI).
Investment funds and repurchase agreements
Company
2014
2013
Repurchase agreements:
Debentures of financial groups
National Treasury Bills (LTNs)
Financial Treasury Bills (LFTs)
25
6,570
5,107
11,677
-
Consolidated
2014
2013
91,246
70,943
162,189
101,734
49,348
151,082
Company
2014
2013
Fixed-income securities:
Financial Treasury Bills (LFTs)
Financial Bills
Bank Certificates of Deposit (CDBs)
Debentures of leasing and power companies
11,951
5,648
18,538
36,137
47,814
876
-
876
876
Consolidated
2014
2013
165,986
257,428
129,189
552,603
714,792
336,566
228,734
1,012
566,312
717,394
Financial assets at fair value through profit or loss are disclosed in line item ‘Investing
activities’ as part of the changes in working capital, in the statement of cash flows.
Changes in the fair values of financial assets at fair value through profit or loss are
recognized in line item ‘Finance income’, in the income statement (note 23).
The fair value of all private debentures, LFTs and LTNs is based on their current purchase
prices, considering an active market.
Balances are kept as short-term investments because on the date of the related investments
the Company’s management had the intent to redeem them after 90 days and also based on
the considerations made for each type of paper.
5.
RECEIVABLES AND ASSIGNMENT OF RECEIVABLES
a) Trade receivables
Completed projects
Company
2014
2013
Consolidated
2014
2013
3,647
608,651
3,666
Projects under construction
Recognized revenue
Present value adjustment
Installments received
Barter for land
498,372
- 3,270,983 4,122,612
(50,984)
(47,132)
- (1,306,678) (1,730,476)
-
-
(506,921) (566,441)
1,406,400 1,778,563
-
Recognized receivables
Allowance for doubtful debts
3,647
3,647
3,666
3,666
2,015,051 2,276,935
(1,367)
(1,367)
2,013,687 2,275,568
Current
Noncurrent
1,600
2,047
1,619
2,047
1,640,415
373,269
1,880,015
395,553
Trade receivables are adjusted substantially based on the variation of the National Civil
26
Construction Index (INCC) until delivery of the unit and, subsequently, the portion not
received through onlending of financing obtained directly by the customers from financial
institutions is adjusted based on the variation of the General Market Price Index (IGP-M) or
the Extended Consumer Price Index (IPCA) plus interest of 12% per year, recorded on a
pro rata basis after completion of the construction and delivery of the unit sold.
Thus, it is estimated that trade receivables from completed projects and recognized trade
receivables from projects under construction, discounted to present value, approximate their
fair values.
Receivables from units sold and not yet completed are not fully reflected in the financial
statements, to the extent that only the portion of revenue that has been recognized (pursuant
to the criteria described in note 2.19.a)), net of the installments already received, is
recorded. Noncurrent trade receivables comprise the portion falling due within more than
one year. The aging list of the total installments receivable from sale agreements for
completed and uncompleted units, without considering the effects of present value
adjustment (note 2.19.a)), is as follows:
Company
2014
2013
Consolidated
2014
2013
Past-due
Current:
2015
2016
2017
2018 and thereafter
1,317
1,110
57,976
44,563
213
193
343
1,582
3,647
509
214
214
1,619
3,666
1,805,453
1,199,362
796,733
318,459
4,177,973
2,201,819
1,349,274
1,001,614
92,897
4,690,167
Recognized trade receivables
Unrecognized trade receivables
3,647
-
3,666
-
2,015,051
2,162,922
2,276,936
2,413,231
A referred to in note 2, the risk of losses in case of default during the construction period is
evaluated as practically null in light of the guarantee of recovery of the units sold.
The aging list of the past-due balance of trade receivables is as follows:
Company
2014
2013
Past-due:
Up to three months
3 to 6 months
Over six months
Completed properties
Past-due:
Up to three months
3 to 6 months
Over six months
Properties under construction
27
Consolidated
2014
2013
1,180
1,317
1,110
1,110
9,499
3,889
28,175
41,563
3,189
1,632
16,392
21,213
-
-
13,293
1,679
1,441
16,413
14,078
3,632
5,640
23,350
As at December 31, 2014, the realization of consolidated trade receivables in the amount
R$2,384 (R$ 3,361 in 2013 ), was uncertain, since the balance related to receivables from
customers whose units have already been delivered and that are past due for more than 180
days. For agreements that are not secured by the fiduciary sale of the financed asset (certain
sales transactions occurred prior to 2008 are covered), the Company recognized an
allowance for doubtful debts and the balance of the allowance is R$1,367 at December 31,
2014 and 2013.
The Company’s Management has as an internal policy to monitor the portfolio of
receivables on a monthly basis and terminate the contracts for units with default on
payments. After the termination, those units are made available for sale at market value.
This policy avoids a concentration of terminated contracts when the units are delivered and
the portfolio is transferred to the financial institutions that are the receivables assignees.
Maximum exposure to credit risk at the reporting date is the carrying amount of each class
of receivables as mentioned above.
b) Assignment of receivables
Funds obtained from receivables assignment transactions - in which not all risks and
rewards were transferred - in the amount of R$4,426 in consolidated (R$10,462 in 2013),
are presented in liabilities (current and noncurrent) and correspond to factored receivables
from completed projects, at rates from 10% to 12% per year, plus IGP-M or IPCA.
Consolidated
2014
2013
Current
Noncurrent
2,691
1,735
4,426
7,884
2,578
10,462
In addition, the receivables assignment transactions are collateralized by the factored
receivables and the commitment to pay any default on receivables.
c) Credit quality of financial assets
The credit quality of financial assets may be assessed by reference to the respective
guarantees:
Company
2014
2013
Trade receivables
Allowance for doubtful debts
3,647
3,647
3,666
3,666
Consolidated
2014
2013
2,015,051 2,276,936
(1.367)
(1,367)
2,013,684 2,275,569
28
Delivered units:
Collateralized
Not collateralized
Units under construction:
Collateralized
29
Company
2014
2013
Consolidated
2014
2013
3,647
-
3,666
-
605,621
1,663
494,348
4,025
3,647
3,666
1,406,400
2,013,684
1,777,195
2,275,568
6.
PROPERTIES FOR SALE
Represented by land for future developments and costs incurred on real estate units for sale
(completed and under construction), as shown below:
Company
2014
2013
Consolidated
2014
2013
Advances for purchase of land
Land
Properties under construction
Advances to suppliers
Completed properties
261
24,064
3,611
27,936
261
23,222
2,654
26,137
36,995
485,633
1,134,783
9.072
244,860
1,911,343
116,195
329,587
979,211
10,208
91,438
1,526,639
Current
Noncurrent
27,936
-
26,137
-
745,778
1,165,565
707,074
819,565
The noncurrent portion corresponds to land and projects scheduled to be launched within more
than 12 months.
Real estate for sale pledged as collateral is mentioned in note 11.(a).
Changes in financial charges incurred as a result of bank financing transactions and allocated to
cost over the construction period (referred to in note 2.9) are as follows:
Consolidated
2014
2013
Balance of inventories at the beginning of the year
Financial charges incurred in the year (*)
Allocation of financial charges to cost of sales
Balance of inventories at the end of the year
62,876
193,930
(149,902)
106,904
39,329
151,665
(128,118)
62,876
(*) Do not include financial charges on payables for purchase of land as they are restricted to
bank loans obtained for this specific purpose, real estate financing, and debentures.
30
7.
INVESTMENTS
Company
2014
2013
In subsidiaries
In associates
Goodwill
Tax and other incentives
Investments
2,732,985
22,936
400
11
2,756,332
2,404,332
19,735
475
11
2,424,553
Consolidated
2014
2013
22,936
11
22,947
19,735
11
19,746
a) Main information on the equity interests held
Participação - %
Empresas
Window Jardins Empreendimentos Imobiliários S,A.
City Projects Empreendimentos Ltda.
Alef Empreendimentos Imobiliários Ltda.
Terra Vitris Empreendimentos Imobiliários Ltda.
Norteven Empreendimentos Imobiliários Ltda.
Westeven Empreendimentos Imobiliários Ltda.
Concetto Empreendimentos Imobiliários Ltda.
Iluminatto Empreendimentos Imobiliários Ltda.
Boulevard São Francisco Empreendimentos Imobiliários Ltda.
Vida Viva Mooca Empreendimentos Imobiliários Ltda.
Epsilon Even Empreendimentos Imobiliários Ltda.
Zeta Even Empreendimentos Imobiliários Ltda.
Vivre Empreendimentos Imobiliários Ltda.
Especiale Empreendimentos Imobiliários Ltda.
Vida Viva Santa Cruz Empreendimentos Imobiliários S.A.
Sagittarius Even Empreendimentos Imobiliários Ltda.
Vida Viva Tatuapé Empreendimentos Imobiliários Ltda.
Even Arts Ibirapuera Empreendimentos Imobiliários Ltda.
Mozodiel do Campo Ltda.
Kappa Even Empreendimentos Imobiliários Ltda.
Phi Even Empreendimentos Imobiliários Ltda.
Omicron Even Empreendimentos Imobiliários Ltda.
Vida Viva Butantã Empreendimentos Imobiliários Ltda.
Tabor Empreendimentos Imobiliários Ltda.
Columba Even Empreendimentos Imobiliários Ltda.
Áquila Even Empreendimentos Imobiliários Ltda.
Centaurus Even Empreendimentos Imobiliários Ltda.
Gemini Even Empreendimentos Imobiliários Ltda.
Serpens Even Empreendimentos Imobiliários Ltda.
Ophiuchus Even Empreendimentos Imobiliários Ltda.
Dom Pedro 185 Even Empreendimentos Imobiliários Ltda.
Volans Even Empreendimentos Imobiliários Ltda.
Andromeda Even Empreendimentos Imobiliários Ltda.
Chamaeleon Even Empreendimentos Imobiliários Ltda.
Áries Even Empreendimentos Imobiliários Ltda.
Taurus Even Empreendimentos Imobiliários Ltda.
Capricornus Even Empreendimentos Imobiliários Ltda.
Libra Even Empreendimentos Imobiliários Ltda.
Leo Even Empreendimentos Imobiliários Ltda.
Scorpius Even Empreendimentos Imobiliários Ltda.
Pisces Even Empreendimentos Imobiliários Ltda.
Delphinus Even Empreendimentos Imobiliários Ltda.
Lyra Even Empreendimentos Imobiliários Ltda.
Bela Cintra 561 Even Empreendimentos Imobiliários Ltda.
Cetus Even Empreendimentos Imobiliários Ltda.
Hercules Even Empreendimentos Imobiliários Ltda.
Cajuru 74 Even Empreendimentos Imobiliários Ltda.
Indus Even Empreendimentos Imobiliários Ltda.
Auriga Even Empreendimentos Imobiliários Ltda.
Circinus Empreendimentos Imobiliários Ltda.
Grus Even Empreendimentos Imobiliários Ltda.
Fornax Even Empreendimentos Imobiliários Ltda.
Colinas do Morumbi Empreendimentos Imobiliários Ltda.
31
2014
2013
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
Lucro líquido
(prejuízo)
do exercício
2014
2013
223
778
(498)
(22)
136
(21)
97
68
377
1
125
205
340
(14)
29
211
(25)
9
(116)
64
135
(110)
50
1.049
4
7.246
67
(5)
344
(10.522)
13.868
16
200
58
121
638
107
(137)
(49)
7.748
17.424
2.910
189
(11)
1.109
(72)
(50)
18.540
(13)
190
(393)
764
(2.279)
62
130
744
176
32
178
573
163
18
23
1.117
7
31
23
(12)
(27)
23
263
3.742
88
3.354
1.038
7.184
1.420
1.263
350
221
48
600
860
479
320
469
9.072
30.871
2.172
252
26
4.309
1.219
(149)
2.592
(4.393)
Patrimônio
líquido (passivo a
descoberto) ajustado
2014
(728)
4.077
1.474
(11)
1.614
13
763
435
2.808
126
565
2.979
1.690
87
71
1.815
349
70
(44)
501
753
452
1.047
4.076
151
22.673
70
184
2.921
4.540
13
39.587
75
1.165
674
710
3.541
1.261
58
13
189
43.211
21.212
20.225
2.193
103
17.688
412
1.946
54
5.766
35.030
2013
(951)
3.197
1.972
1.410
327
234
765
494
3.079
194
639
2.766
1.601
298
172
2.468
338
61
72
435
878
452
995
6.641
139
17.365
2.181
189
10.451
25.005
13
35.491
589
2.769
856
585
3.853
2.063
58
138
1.096
60.024
74.355
17.724
2.196
33
15.564
472
412
1.917
55
12.027
21.915
Investimento
Controladora e
Consolidado
2014
4.077
1.474
1.614
13
763
435
2.808
126
565
2.980
1.691
87
71
1.815
349
70
501
752
452
1.047
4.077
151
22.673
70
184
2.921
4.540
13
39.586
74
1.165
674
710
3.541
1.261
58
13
188
43.213
21.213
20.225
2.193
103
17.688
412
1.945
54
5.766
35.030
2013
3.198
1.972
1.410
326
234
765
494
3.079
194
639
2.766
1.602
298
172
2.467
338
61
73
436
876
453
996
6.641
139
17.365
2.180
189
10.450
25.005
14
35.491
589
2.768
856
584
3.853
2.064
58
138
1.096
60.023
74.354
17.724
2.196
33
15.564
471
412
1.916
55
12.028
21.916
Participação - %
Empresas
Monoceros Even Empreendimentos Imobiliários Ltda.
Pyxis Even Empreendimentos Imobiliários Ltda.
Telescopium Even Empreendimentos Imobiliários Ltda.
Cepheus Even Empreendimentos Imobiliários Ltda.
Octans Even Empreendimentos Imobiliários Ltda.
Crevette Even Empreendimentos Imobiliários Ltda.
Pictor Even Empreendimentos Imobiliários Ltda.
Sagitta Even Empreendimentos Imobiliários Ltda.
Sculptor Even Empreendimentos Imobiliários Ltda.
Scutum Even Empreendimentos Imobiliários Ltda.
Antlia Even Empreendimentos Imobiliários Ltda.
Caelum Even Empreendimentos Imobiliários Ltda.
Camelopardalis Even Empreendimentos Imobiliários Ltda.
Horologium Even Empreendimentos Imobiliários Ltda.
Pavão 214 Even Empreendimentos Imobiliários Ltda.
Microscopium Even Empreendimentos Imobiliários Ltda.
Perseus Even Empreendimentos Imobiliários Ltda.
Puppis Even Empreendimentos Imobiliários Ltda.
Reticulum Even Empreendimentos Imobiliários Ltda.
Mensa Even Empreendimentos Imobiliários Ltda.
Musca Even Empreendimentos Imobiliários Ltda.
Tucana Even Empreendimentos Imobiliários Ltda.
Snake Even Empreendimentos Imobiliários Ltda.
Fox Even Empreendimentos Imobiliários Ltda.
Tiger Even Empreendimentos Imobiliários Ltda.
Lion Even Empreendimentos Imobiliários Ltda.
Shark Even Empreendimentos Imobiliários Ltda.
Even Brisa Beta Empreendimentos Imobiliários Ltda.
Even Brisa Alpha Empreendimentos Imobiliários Ltda.
Even Brisa Epsilon Empreendimentos Imobiliários Ltda.
Even Brisa Delta Empreendimentos Imobiliários Ltda.
Even Brisa Zeta Empreendimentos Imobiliários Ltda.
Even Brisa Omicron Empreendimentos Imobiliários Ltda.
Souris Empreendimentos Imobiliários Ltda.
Even Brisa Eta Empreendimentos Imobiliários Ltda.
Even Brisa Kappa Empreendimentos Imobiliários Ltda.
Cafard Empreendimentos Imobiliários Ltda.
Leopard Even Empreendimentos Imobiliários Ltda.
Birds Even Empreendimentos Imobiliários Ltda.
Lionfish Even Empreendimentos Imobiliários Ltda.
Bear Even Empreendimentos Imobiliários Ltda.
Rabbit Even Empreendimentos Imobiliários Ltda.
Koala Even Empreendimentos Imobiliários Ltda.
Squirrel Even Empreendimentos Imobiliários Ltda.
Dolphin Even Empreendimentos Imobiliários Ltda.
Penguins Even Empreendimentos Imobiliários Ltda.
Dracena 1081 Even Empreendimentos Imobiliários Ltda.
Polar bear Even Empreendimentos Imobiliários Ltda.
Horse Even Empreendimentos Imobiliários Ltda.
Panda Even Empreendimentos Imobiliários Ltda.
Voluntários da Patria 774 Even Empreendimentos Imobiliários
Ltda.
Monkey Even Empreendimentos Imobiliários Ltda.
Giraffe Even Empreendimentos Imobiliários Ltda.
Butterfly Even Empreendimentos Imobiliários Ltda.
Bee Even Empreendimentos Imobiliários Ltda.
Armadillo Even Empreendimentos Imobiliários Ltda.
Sheep Even Empreendimentos Imobiliários Ltda.
Cat Even Empreendimentos Imobiliários Ltda.
Gamma Even Rio Empreendimentos Imobiliários Ltda.
Epsilon Even Rio Empreendimentos Imobiliários Ltda.
Alpha Even Rio Empreendimentos Imobiliários Ltda.
Even-RJ 16/12 Empreendimentos Imobiliários Ltda.
Toucan Even Empreendimentos Imobiliários Ltda.
Ox Even Empreendimentos Imobiliários Ltda.
Eagle Even Empreendimentos Imobiliários Ltda.
Lizard Even Empreendimentos Imobiliários Ltda.
Even Brisa Sigma Empreendimentos Imobiliários Ltda.
Chouette Empreendimentos Imobiliários Ltda.
Scarabee Empreendimentos Imobiliários Ltda.
Luis Migliano I Even Empreendimentos Imobiliários Ltda.
Peacock Even Empreendimentos Imobiliários Ltda.
Goat Even Empreendimentos Imobiliários Ltda.
Lucro líquido
(prejuízo)
do exercício
2014
2013
Patrimônio
líquido (passivo a
2014
2013
Investimento
Controladora e
Consolidado
2014
2013
2014
2013
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
85,00
85,00
85,00
100,00
85,00
85,00
85,00
85,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
287
3.359
31
11
(33)
4
20
119
28
325
2.491
(22)
84
6.242
8.371
17.660
233
99
123
372
3.635
(1.100)
408
1.009
(727)
2
1.719
(17)
13
(1.608)
45
505
(2.584)
(139)
19
(160)
14.900
(205)
4.343
1.827
315
2.598
29
873
50
1.707
388
(2)
(277)
273
3
82
958
951
424
9.559
1.027
11.171
10.823
13.695
3.397
337
3.796
(1)
155
(1.214)
6.271
329
558
(2.262)
(568)
2.970
(107)
(8)
(149)
(3.670)
43
1.238
356
224
93
(454)
7.477
192
3.931
(1)
480
312
(893)
104
1.221
1.319
228
6.441
(63)
306
52
135
169
1.936
124
1.383
4.047
35
16
1.487
52
12.876
17.842
20.389
2.259
514
791
745
5.731
9.829
3.886
9.940
9.789
8.850
(6)
12.983
13.383
35
2.483
11.367
117
5.036
10.053
(50)
287
9.514
24.809
(121)
13.402
18
22.751
1.564
7.188
75
11.718
1.451
229
6.762
281
22.229
295
162
130
471
1.962
43
597
14.191
57
17
1.379
52
16.995
20.278
26.969
3.409
528
4.371
745
4.442
8.296
4.933
9.175
15.713
599
(8)
14.382
13.236
36
(2.357)
(7.978)
1.802
5.065
9.414
569
268
9.590
28.900
(42)
13.458
18
15.654
2.266
12.241
223
7.744
1.318
228
6.438
18
306
52
134
169
1.936
124
1.384
4.048
35
17
1.487
52
12.876
17.842
20.389
2.258
513
791
745
5.731
9.830
3.886
9.941
9.788
8.849
12.981
13.383
35
2.483
11.367
117
5.036
10.053
287
9.514
24.809
13.402
18
22.750
1.564
7.186
74
11.718
1.451
229
6.760
282
22.229
295
162
130
472
1.961
42
597
14.192
57
17
1.379
53
16.995
20.278
26.970
3.409
527
4.371
745
4.443
8.296
4.933
9.177
15.711
506
12.220
13.236
30
(71)
1.532
5.065
9.414
569
268
9.591
28.900
(6)
13.457
18
15.654
2.266
12.239
223
7.744
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
85,00
85,00
85,00
100,00
100,00
100,00
623
1.182
4.768
3.890
102
(215)
890
92
527
2.733
199
57
5.821
8
(540)
(1)
3.265
8.763
3.701
(2.004)
1.012
23.332
4.950
254
(1.052)
4.117
37
(1.660)
1.793
881
3.189
1.177
1
(3.659)
609
8.002
7.437
21
1.265
3.827
19.788
18.261
130
2.365
10.945
2.965
3.955
10.116
1.807
328
1
17.236
1
(533)
(12)
56.683
19.097
15.349
22
5.011
13.871
30.953
22.812
2.229
6.171
14.039
39
9.155
10.692
3.407
269
1
15.221
(8)
1.047
(12)
21.243
19.381
18.663
22
1.266
3.827
19.788
18.261
130
2.365
10.945
2.965
3.955
10.116
1.807
329
1
17.236
1
56.683
19.097
15.347
22
5.010
13.871
30.952
22.812
2.229
6.172
14.039
40
9.155
10.693
3.407
271
1
15.220
890
21.243
19.381
18.662
32
Participação - %
Empresas
Kangaroo Even Empreendimentos Imobiliários Ltda.
Hamster Even Empreendimentos Imobiliários Ltda.
Sea Horse Even Empreendimentos Imobiliários Ltda.
Green Prestação de Serviços de Construção Civil Ltda.
Lambda Even Rio Empreendimentos Imobiliários Ltda.
Kappa Even Rio Empreendimentos Imobiliários Ltda.
Eta Even Rio Empreendimentos Imobiliários Ltda.
Barbel Even Empreendimentos Imobiliários Ltda.
Elk Even Empreendimentos Imobiliários Ltda.
Bavete Even Empreendimentos Imobiliários Ltda.
Otter Even Empreendimentos Imobiliários Ltda.
Tentilhão Even Empreendimentos Imobiliários Ltda.
Phi Even Rio Empreendimentos Imobiliários Ltda.
Andromeda Even Rio Empreendimentos Imobiliários Ltda.
Omega Even Rio Empreendimentos Imobiliários Ltda.
Omicron Even Rio Empreendimentos Imobiliários Ltda.
Áquila Even Rio Empreendimentos Imobiliários Ltda.
Sigma Even Rio Empreendimentos Imobiliários Ltda.
Aquarius Even Rio Empreendimentos Imobiliários Ltda.
Even Rio 02 Empreendimentos Imobiliários Ltda.
Even MG 05/11 Empreendimentos Imobiliários Ltda.
Aigrette Empreendimentos Imobiliários Ltda.
Extraordinaire Empreendimentos Imobiliários Ltda.
Bactris Empreendimentos Imobiliários Ltda.
Claraiba Empreendimentos Imobiliários Ltda.
Gallesia Empreendimentos Imobiliários Ltda.
José Higino Empreendimentos Imobiliários Ltda.
Batataes 586 Empreendimentos Imobiliários Ltda.
Camel Even Empreendimentos Imobiliários Ltda.
Evenpar Participações Societárias Ltda.
Crocodile Empreendimentos Imobiliários Ltda.
Even - SP 02/10 Empreendimentos Imobiliários Ltda.
SP 05/10 Empreendimentos Imobiliários Ltda.
SP 09/10 Empreendimentos Imobiliários Ltda.
Caboquenas Empreendimentos Imobiliários Ltda.
Arizona 668 Empreendimentos Imobiliários Ltda.
Even SP 18/10 Empreendimentos Imobiliários Ltda.
Três Rios Even Empreendimentos Imobiliários Ltda.
Campineiros 684 Empreendimentos Imobiliários Ltda.
Oratório 5198 Empreendimentos Imobiliários Ltda.
Giren Empreendimentos Imobiliários Ltda.
Grijon Empreendimentos Imobiliários Ltda.
Chenille Empreendimentos Imobiliários Ltda.
Mistic Empreendimentos Imobiliários Ltda.
Goian Empreendimentos Imobiliários Ltda.
Bela Cintra 237 Empreendimentos Imobiliários Ltda.
Evenpar II Participações Societárias Ltda.
Ricardo Jafet 858 Empreendimentos Imobiliários Ltda.
Marquês de São Vicente 1767 Empreendimentos Imobiliários Ltda.
Maria Daffre 235 Empreendimentos Imobiliários Ltda.
Tenente Gelas 252 Empreendimentos Imobiliários Ltda.
Irigny Empreendimentos Imobiliários S.A.
S Brandão 199 Empreendimentos Imobiliários Ltda.
Raimundo 817 Empreendimentos Imobiliários Ltda.
EVEN - SP 46/10 Empreendimentos Imobiliários Ltda.
33
2014
2013
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
85,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
88,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
88,00
100,00
100,00
100,00
100,00
100,00
80,00
100,00
100,00
100,00
Lucro líquido
(prejuízo)
do exercício
2014
(2.719)
772
4.867
5.252
1.967
8.243
3.486
8.718
4.660
656
1.555
51
425
12.870
640
5.797
304
1.278
(1)
1
760
(2)
31
59
1.228
5.781
1.540
583
(935)
1.980
1.420
7
1.186
4.460
8.444
2.701
8.077
3.060
1.507
1.589
21.544
18.641
12.489
7
8.400
2.697
3.142
(24)
7.446
2.684
1.782
11.122
1.285
11.750
9.835
7
8.828
3.642
2013
80
(10.948)
2.155
625
(1.435)
3.346
6.139
1.637
7.825
719
6
(426)
28.261
(305)
10.725
615
16
151
(2)
(4)
415
7.614
2.141
1.262
689
6.148
7.577
1.880
(5.181)
4.394
140
12.570
13.675
2.813
681
21.526
10.108
4.313
3.846
9.169
2.516
162
3.615
17.778
1.975
10.729
7.913
14.546
12.226
4.099
Patrimônio
líquido (passivo a
2014
2
8.202
1
(229)
20.738
27.722
24.201
7.609
66.640
12.885
42.098
52.301
633
42.336
64.251
12.237
1
303
1.903
15
(97)
(6)
(8)
30
(1)
23.637
7.205
(1)
1.838
8.504
5
1.978
2.109
19.349
10.958
7
12.976
12.289
26.273
711
28
25.450
15.193
9.145
13.212
27.789
41.461
39.959
2
1
1
33.735
7
20.184
15.590
31
14.647
19
16.017
13.271
9.261
20
22.334
9.111
16.964
34.755
17.715
79
12.841
19.385
2013
3
6.965
1
(4.616)
21.445
19.135
(1.967)
23.698
12.874
53.698
16.816
41.789
7
(425)
52.781
58.601
13.950
1
625
1
16
800
(7)
(8)
(1)
(1)
415
(1)
(1)
4.225
10.093
5
4.625
2.999
21.608
14.287
14.044
16.826
19.392
711
28
8.875
25.591
17.701
12.199
17.611
42.085
42.202
2
2
2
29.960
14.892
23.436
31
13.382
19
182
15.116
34.953
20.361
16.837
40
37.118
25.689
18.053
14.640
Investimento
Controladora e
Consolidado
2014
2
8.202
1
20.737
27.723
24.200
7.609
66.639
12.884
42.098
52.301
633
42.335
64.251
12.237
1
304
1.903
16
(96)
1
31
23.637
7.205
1.839
8.504
5
1.979
2.109
19.349
10.959
7
12.977
12.290
26.273
711
28
25.450
15.193
9.146
13.211
27.789
41.461
39.959
2
1
1
33.736
7
20.184
15.591
31
14.646
19
16.018
13.270
9.261
20
22.334
9.111
16.964
34.755
17.714
79
12.841
19.385
2013
3
6.965
1
21.445
19.134
(1.967)
23.699
12.873
53.697
16.816
41.787
7
(425)
44.850
58.599
13.951
1
626
1
16
800
415
4.225
10.094
5
4.626
2.999
21.608
14.288
14.044
16.827
19.391
712
28
8.875
22.514
17.701
12.199
17.611
42.085
42.202
2
2
2
29.960
14.892
23.437
32
13.382
19
183
15.116
30.751
20.361
16.837
40
37.116
20.537
18.053
14.640
Participação - %
Empresas
Xingu 121 Empreendimentos Imobiliários Ltda.
Correia Dias 136 Empreendimentos Imobiliários Ltda.
Macaúva Empreendimentos Imobiliários Ltda.
Hevea Empreendimentos Imobiliários Ltda.
EVEN-SP 61/11 Empreendimentos Imobiliários Ltda.
Calopsita Empreendimentos Imobiliários Ltda.
Perdrix Empreendimentos Imobiliários Ltda.
Angelim Empreendimentos Imobiliários Ltda.
Agarpone Empreendimentos Imobiliários Ltda.
Natingui Empreendimentos Imobiliários Ltda.
Tingui Empreendimentos Imobiliários Ltda.
Mofarrej 1215 Empreendimentos Imobiliários Ltda.
Volee Empreendimentos Imobiliários Ltda.
EVEN-SP 85/11 Empreendimentos Imobiliários S.A.
ESP 88/12 Empreendimentos Imobiliarios Ltda
EVEN-RJ 14/12 Empreendimentos Imobiliários Ltda.
ESP 90/13 Empreendimentos Imobiliários Ltda.
Canjerana Empreendimentos Imobiliários Ltda.
Leiocarpa Empreendimentos Imobiliários Ltda.
Euterpe Empreendimentos Imobiliários Ltda.
Prestige Empreendimentos Imobiliários Ltda.
Villosa Empreendimentos Imobiliários Ltda.
Pacari Empreendimentos Imobiliários Ltda.
Araruva Empreendimentos Imobiliários Ltda.
Guapeva Empreendimentos Imobiliários Ltda.
Moineau Empreendimentos Imobiliários Ltda.
Tortue Empreendimentos Imobiliários Ltda.
ERJ 105/13 Empreendimentos Imobiliários Ltda.
ERJ 108/13 Empreendimentos Imobiliários Ltda.
Aigle Empreendimentos Imobiliários Ltda.
Cygne Empreendimentos Imobiliários Ltda.
Sociedade em Conta de Participação (SCP) - Even MDR
Tricity Empreendimento e Participações Ltda.
Eco Life Cidade Universitária Empreendimentos Imobiliários S.A.
Parqueven Empreendimentos Ltda.
Plaza Mayor Empreendimentos Imobiliários Ltda.
Cygnus Empreendimentos Imobiliários Ltda.
Quadcity Bela Cintra Empreendimentos Imobiliários Ltda.
Disa Catisa Empreendimentos Imobiliários
Dragon Even Empreendimentos Imobiliários Ltda.
Neibenfluss Empreendimentos Ltda.
Fazenda Roseira Delta Empreendimentos Imobiliários Ltda.
Fazenda Roseira Gamma Empreendimentos Imobiliários Ltda.
Fazenda Roseira Kappa Empreendimentos Imobiliários Ltda.
Fazenda Roseira Zeta Empreendimentos Imobiliários Ltda.
Fazenda Roseira Beta Empreendimentos Imobiliários Ltda.
Fazenda Roseira Alpha Empreendimentos Imobiliários Ltda.
Fazenda Roseira Eta Empreendimentos Imobiliários Ltda.
2014
2013
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
66,67
50,00
40,00
50,00
75,00
50,00
50,00
50,00
80,00
50,00
45,80
45,80
45,80
45,80
45,80
45,80
45,80
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
66,67
50,00
40,00
50,00
75,00
50,00
50,00
50,00
80,00
50,00
45,80
45,80
45,80
45,80
45,80
45,80
45,80
Lucro líquido
(prejuízo)
do exercício
2014
2.506
3.056
6.879
10.011
(2.309)
2.842
15.916
15.440
1.159
10.639
10.472
752
11.069
12.304
44
1.762
(852)
1.939
(2)
3
39
63
410
8
34
303
25
1
1
389
4
5.922
31
(592)
4
29
809
(85)
1
12
794
829
2
577
1.197
4
2
(380)
12.196
(99)
333
428
5
1.347
226
1.786
4.078
651
(2)
42
300
6.200
508
(2)
2013
4.712
1.153
35
4.789
7.005
8.405
7.690
8.739
5.328
(399)
7.014
1
16.354
1.120
(1.351)
1.355
(2)
(5)
3
(1)
1.607
(1)
(1)
(1)
(1)
(1)
33
40
(679)
9.196
101
705
(277)
(3.867)
12.061
4.619
12.915
5.386
815
(20)
(68)
1.125
(7)
(48)
(24)
Patrimônio
líquido (passivo a
2014
10.434
24.132
20.186
74.749
29.490
9.465
37.321
17.885
37.683
24.607
53.729
47
13.098
26.416
171
60
49.365
245
19.744
16.156
24.368
6
508
292
384
45.217
97
34
(1)
303
(1)
(1)
(1)
98
38
47
14.366
84
42.428
198
16.363
50
205
20.510
20.146
41
12
15.403
829
65
17.635
11.518
118
2
(553)
63.870
608
3.854
1.759
5.340
5.317
38.186
555
93.765
8.375
190
2.677
6.942
7.484
2.435
179
2013
12.159
21.681
35
21.482
19
40
14.159
34.672
18.118
20.952
47.046
47
(398)
26.389
172
58.438
18.388
10.823
14.833
8
403
3
1
42.016
(1)
(1)
(1)
(1)
(1)
33
40
(597)
117.691
708
6.506
3.327
11.570
24.558
55.932
15.589
94.706
1.342
128
322
1.477
1.284
(244)
181
Investimento
Controladora e
Consolidado
2014
2013
10.435
24.131
20.187
74.750
29.490
9.465
37.322
17.885
37.683
24.608
53.729
47
13.098
26.414
171
60
49.365
245
19.744
16.157
24.368
6
507
292
385
45.239
97
34
304
98
38
47
14.366
83
42.429
198
16.363
50
205
20.510
20.146
41
12
15.402
829
65
17.635
11.518
118
2
1
31.967
243
1.926
1.320
2.670
2.656
19.092
444
46.850
3.836
87
1.226
3.180
3.428
1.116
82
34
12.159
21.681
36
21.483
19
40
14.158
34.671
18.118
20.953
47.046
47
(397)
26.388
172
58.437
18.388
10.823
14.833
8
404
3
1
42.005
33
40
5
58.858
283
3.244
2.495
5.784
12.272
27.951
12.471
47.328
614
59
147
674
588
(111)
83
Participação - %
Empresas
Fazenda Roseira Epsilon Empreendimentos Imobiliários Ltda.
Carp Even Empreendimentos Imobiliários Ltda.
Sociedade em Conta de Participação - Even Construterpins
Raimundo IV Empreendimentos Imobiliários Ltda.
Quadcity Maria Curupaiti Empreendimentos Imobiliários Ltda.
GD-VI Empreendimentos Imobiliários Ltda.
Quadicity Zacaria de Goes Empreendimentos Imobiliários Ltda.
Quadcity Melo Nogueira Empreendimentos Imobiliários Ltda.
Jamestown Even One Empreendimentos Imobiliários Ltda.
Melnick Even Incorporações e Construções S.A.
Melnick Desenvolvimento Imobiliário S.A
2014
2013
45,80
66,00
64,29
50,00
50,00
70,00
50,00
50,00
50,00
50,00
80,00
45,80
66,00
64,29
50,00
50,00
70,00
50,00
50,00
100,00
50,00
80,00
50,00
50,00
50,00
50,00
50,00
50,00
35,00
50,00
45,00
Lucro líquido
(prejuízo)
do exercício
2014
2013
Patrimônio
líquido (passivo a
2014
2013
Investimento
Controladora e
Consolidado
2014
2013
892
1.209
99
(3.539)
8.216
4.969
4.911
4.282
1.777
(4.855)
70.110
(263)
14.411
(18)
11
840
7.399
4.022
1.006
20.350
27.617
10.161
930
2.694
55.382
21.140
16.694
29,421
12.765
21.820
72.478
184.966
1.210
26.339
2.595
53.780
20.950
17.247
31.537
8.498
95.733
75.547
4.654
614
1.732
27.679
10.553
11.662
14.485
6.572
10.910
36.210
147.820
2.732.985
553
17.368
1.667
26.890
10.471
12.064
15.557
4.447
47.838
60.385
2.404.332
50,00
50,00
50,00
50,00
50,00
50,00
35,00
50,00
(9)
4
(244)
312
9
51
54
63
3.600
3.532
(1.815)
10
(1.529)
3.457
1.768
34.947
1.552
1.864
(463)
10
(313)
3.458
5.620
4.898
5.755
(181)
5
1.728
882
17.474
543
932
(175)
5
25
1.729
2.810
1.714
2.877
45,00
(1.162)
(2.621)
3.454
23.904
1.554
22.936
2.755.921
10.749
19.735
2.424.067
Sociedades não controladas com participação de terceiros
Aliko Investimento Imobiliário Ltda.
Jardim Goiás Empreendimentos Imobiliários Ltda.
Nova Suíça Empreendimentos Imobiliários Ltda.
Partifib Projetos Imobiliários Ltda
Residencial Ernesto Igel SPE Ltda.
Residencial Guarulhos SPE Ltda.
Sociedade Albatroz Vargem Pequena Empreendimentos
Imobiliários Ltda.
b) Main information on the indirect equity interests held
Empresas
35
Participação
indireta - %
2014
2013
Lucro líquido
(prejuízo)
do exercício
2014
2013
Patrimônio
líquido
2014
2013
Evisa Empreendimentos Imobiliários Ltda.
50,00
50,00
47
(283)
(555)
(602)
Lepus Even Empreendimentos Imobiliários Ltda.
50,00
50,00
2.561
4.003
11.688
39.178
Dog Even Empreendimentos Imobiliários Ltda.
46,25
46,25
532
3.362
6.349
21.818
Blue Whale Even Empreendimentos Imobiliários Ltda.
50,00
50,00
1.170
1.818
6.780
31.695
Beta Even Rio Empreendimentos Imobiliários Ltda.
50,00
50,00
1.297
(746)
(1.419)
16.284
Melnick Even Negócios Imobiliários Ltda.
50,00
50,00
536
452
920
654
Melnick Even Esmeralda Empreendimento Imobiliário Ltda.
50,00
50,00
1
(1)
804
(5)
Melnick Even Granada Empreendimento Imobiliário Ltda.
50,00
50,00
145
4.132
8.277
16.327
Melnick Even Citrino Empreendimento Imobiliário Ltda.
50,00
50,00
929
1.916
7.336
13.253
Melnick Even Quartzo Empreendimento Imobiliário Ltda.
50,00
50,00
-
-
11
-
Ponta da Figueira Empreendimentos Imobiliários S.A.
12,50
12,50
(5.040)
(1.590)
4.156
4.011
Eixo M Engenharia Ltda.
50,00
50,00
3.892
3.937
1.446
(122)
Melnick Even Ametista Empreendimento Imobiliário Ltda.
50,00
50,00
(339)
(698)
185
(2.677)
Melnick Even Lima e Silva Empreendimento Imobiliário Ltda.
50,00
50,00
(181)
(650)
(14)
408
Melnick Even Jade Empreendimento Imobiliário Ltda.
50,00
50,00
87
(487)
164
395
Melnick Even Turquesa Empreendimento Imobiliário Ltda.
50,00
50,00
(247)
3.725
8.260
10.904
Melnick Even Cristal Empreendimento Imobiliário Ltda.
50,00
50,00
3.165
1.165
6.533
3.367
Empresas
Participação
indireta - %
2014
2013
Lucro líquido
(prejuízo)
do exercício
2014
2013
Patrimônio
líquido
2014
2013
Melnick Even Honoré Empreendimento Imobiliário Ltda.
50,00
50,00
(165)
(30)
15
280
Melnick Even Ágata Empreendimento Imobiliário Ltda.
50,00
50,00
(2.823)
1.597
11.324
7.797
Melnick Even Turmalina Empreendimento Imobiliário Ltda.
50,00
50,00
(5.906)
5.456
2.102
8.008
Melnick Even Brasalto Empreendimento Imobiliário Ltda.
50,00
50,00
941
1.431
8.549
5.069
Melnick Even Hematita Empreendimento Imobiliário Ltda.
80,00
80,00
14.132
12.448
29.468
18.924
Melnick Even Diamante Empreendimento Imobiliário Ltda.
80,00
80,00
5
4
1.445
19
Melnick Even Opala Empreendimento Imobiliário Ltda.
80,00
80,00
13.243
4.615
25.920
10.515
Melnick Even Santa Fé Canoas Empreendimento Imobiliário Ltda.
80,00
80,00
4.493
(97)
18.298
9.382
Melnick Even Brita Empreendimento Imobiliário Ltda.
80,00
80,00
13.741
2.464
22.110
4.967
Melnick Even Pérola Empreendimento Imobiliário Ltda.
80,00
80,00
4.975
5.301
12.093
8.478
Melnick Even Brilhante Empreendimento Imobiliário Ltda.
80,00
80,00
9
-
19
-
Melnick Even Safira Empreendimento Imobiliário Ltda.
80,00
80,00
1.196
2.159
3.126
2.266
Melnick Even Berilo Empreendimento Imobiliário Ltda.
80,00
80,00
8.947
3.548
17.192
6.662
Melnick Even Madrepérola Empreendimento Imobiliário Ltda.
80,00
80,00
53
-
63
-
Melnick Even Água Marinha Empreendimento Imobiliário Ltda.
80,00
80,00
2
-
12
-
Melnick Even Topázio Empreendimento Imobiliário Ltda.
80,00
80,00
3.824
2.671
8.217
6.739
Melnick Even Peridoto Empreendimento Imobiliário Ltda.
80,00
80,00
540
1.365
7.869
1.432
Melnick Even Rubi Empreendimento Imobiliário Ltda.
80,00
80,00
11.622
8.035
20.166
10.195
Melnick Even Ãmbar Empreendimento Imobiliário Ltda.
Melnick Even Granito Empreendimento Imobiliário Ltda.
80,00
80,00
80,00
80,00
11
45
(48)
11
916
(11)
Melnick Even Jaspe Empreendimento Imobiliário Ltda.
80,00
80,00
10.034
4.500
12.098
4.905
Melnick Even Marmore Empreendimento Imobiliário Ltda.
80,00
80,00
3.249
(695)
3.839
(672)
Melnick Even Oliveira Empreendimento Imobiliário Ltda.
80,00
80,00
5.585
2.379
8.937
4.365
Melnick Even Palmeira Empreendimento Imobiliário Ltda.
80,00
80,00
7
5
2.871
6
Melnick Even Jacaranda Empreendimento Imobiliário Ltda.
80,00
80,00
(397)
11
1.119
12
Melnick Even Figueira Empreendimento Imobiliário Ltda.
80,00
80,00
2.647
(465)
4.672
(439)
Melnick Even Castanheira Empreendimento Imobiliário Ltda.
80,00
80,00
643
-
644
-
Melnick Even Cerejeira Empreendimento Imobiliário Ltda.
80,00
80,00
2
-
3
-
Melnick Even Acácia Empreendimento Imobiliário Ltda.
80,00
80,00
22
-
23
-
Melnick Even Imbuia Empreendimento Imobiliário Ltda.
80,00
80,00
-
-
1
-
Melnick Even Macieira Empreendimento Imobiliário Ltda.
80,00
80,00
1
-
1
-
99.233
76.709
284.044
36
263.787
c) Unamortized goodwill
Company
2014 2013
Aliko Investimento Imobiliário Ltda.
Dili Empreendimentos e Participações Ltda.
Even Brisa Alpha Empreendimentos Imobiliários Ltda.
Even Brisa Zeta Empreendimentos Imobiliários Ltda.
Other companies
286
104
8
2
400
286
181
6
2
475
Arising on transactions carried out in a period prior to the transition date to the new CPCs
(January 1, 2009), goodwill basically corresponds to the appreciation of land for real estate
developments existing in each company listed, determined against its book cost. The
amortization is being calculated and recorded proportionally to the recognition of the real
estate development profit or loss of the projects related to the land of said subsidiaries.
In the consolidated financial statements, the unamortized balances are disclosed in line item
‘Properties for sale’ (note 6).
d) Changes in investments for the year
Opening
balance
Capital
subscription
(reduction)
Profit
distributed
Equity in
subsidiaries
Other
(*)
Closing
balance
14,060
(13)
2,732,986
22.936
Subsidiaries
Associates
2,404,332
19,735
490,774
16,415
(752,785)
(14,023)
576,604
823
Year ended December 31, 2014
2,424,067
507,189
(766,808)
577,427
14,047 2,755,921
2,008,552
425,687
(584,191)
569,758
(4,260) 2,424,067
(*)
In the first quarter of 2014 installments of 15% of the shareholdings of companies Even Brisa Zeta
Empreendimentos Imobiliários Ltda, Even Brisa Epsilon Empreendimentos Imobiliários Ltda. E Even Brisa Lambda
Empreendimentos Imobiliários Ltda were acquired. On March 31, 2014 the Company had full control.
In the second quarter of 2014 installments of 15% of the equity interests from Even Brisa Delta Empreendimentos
Imobiliários Ltda, Even Brisa Eta Empreendimentos Imobiliários Ltda., Even Brisa Gama Empreendimentos
Imobiliários Ltda., Even Brisa Kappa Empreendimentos Imobiliários Ltda., Even Brisa Omega Empreendimentos
Imobiliários Ltda., Even Brisa Phi Empreendimentos Imobiliários Ltda. and Even Brisa Sigma Empreendimentos
Imobiliários Ltda. Were acquired. In this same period were also acquired the shares of 15% and 20% equity interests
of enterprises Even - SP 51/11 Real Estate Ventures Ltda., Even Omicron Rio Real Estate Ventures Ltda.
respectively. On September 30, 2014 the Company had control of the shares of these companies.
In the fourth quarter of 2014, the Company sold shares of equity interests of Jamestown Even One Empreendimentos
Imobiliários Ltda, reducing de equity interest of 100% to 50% in society. The sale of such equity interest was made
to close the net book value, why was not cleared profit (loss) significant. According to the guidelines of CPC 36 Consolidated Financial Statements, the Company still has control of the company and therefore the remaining
portion of the investment is classified on the line "Subsidiaries".
In the same period, were acquired the share of 50% equity interests of Partifib Projetos Imobiliários Ltda. The
acquisition of shares was made to close the net book value, why was not the goodwill on acquisition. The Company
will hold control of the company and therefore the acquired portion of the investment is classified under
"Associates".
In the year ended 31 de December 2014 and 2013, the Group transferred funds from the
subsidiaries to the Company though the profit distribution, or capital reductions when there
were no profits available for distribution.
37
e) Total of balance sheet and income of subsidiaries with minority interests, directly and
indirectly, in the consolidated financial statements in proportion to the equity interest held
Interests - %
Current
liabilities
Assets
Noncurrent
liabilities
Equity
Total
Em 31 de dezembro de 2014:
40,00
866
-
-
866
50,00
71.126
689
71
71.886
50,00
4.206
28
-
4.234
Evisa Empreendimentos Imobiliários Ltda. -controlada indireta)
66,67
(2.420)
152
-
(2.268)
50,00
6.005
1.873
-
7.878
50,00
4.807
1.569
-
6.376
50,00
31.841
10.430
-
42.271
50,00
89.738
8.755
-
98.493
50,00
199.478
123.439
756
323.673
45,80
8.841
0
-
8.841
45,80
476
-
-
476
45,80
2.804
1
-
2.805
45,80
6.602
-
-
6.602
45,80
4.313
8.386
-
12.699
45,80
3.280
-
-
3.280
45,80
538
-
-
538
45,80
11.052
27
-
11.079
50,00
58.744
9.829
-
68.573
50,00
50.571
13.762
-
64.333
50,00
30.055
-
-
30.055
80,00
611.882
185.266
3.018
800.166
40,00
934
-
-
934
50,00
153.896
3.989
87
157.972
50,00
6.960
14
-
6.974
66,67
(2.384)
208
-
(2.176)
50,00
14.484
1.873
-
16.357
50,00
24.811
1.573
-
26.384
50,00
148.458
-
-
148.458
50,00
84.261
19.191
5.016
108.468
50,00
266.287
119.734
2.150
388.170
45,80
8.728
0
-
8.728
38
Interests - %
Assets
Noncurrent
liabilities
Current
liabilities
Equity
Total
45,80
467
-
-
467
45,80
2.766
0
-
2.766
45,80
6.649
-
-
6.649
45,80
4.032
-
-
4.032
45,80
2.718
-
-
2.718
45,80
526
-
-
526
45,80
12.635
27
-
12.662
50,00
27.313
4.335
-
31.648
50,00
35.295
8.131
-
43.426
50,00
15.315
-
-
15.315
85,00
90.931
-
-
90.931
80,00
334.086
181.291
2.891
518.267
Interests - %
Current
liabilities
Liabilities and equity
Noncurrent
liabilities
Equity
Total
39
40,00
399
(141)
-
608
50,00
3.223
3.841
952
63.870
50,00
280
100
-
3.854
66,67
(1.574)
44
(185)
(553)
50,00
2.146
391
-
5.340
50,00
954
105
-
5.317
50,00
2.556
1.529
-
38.186
50,00
3.405
1.322
-
93.765
50,00
216.502
19.924
14.769
72.478
45,80
298
168
-
8.375
45,80
286
-
-
190
45,80
40
88
-
2.677
45,80
310
(650)
-
6.942
45,80
5.215
-
-
7.484
45,80
129
716
-
2.435
45,80
359
-
-
179
45,80
1.635
(716)
-
10.161
50,00
12.732
34.700
-
21.140
50,00
1.457
33.455
-
29.421
50,00
15.248
2.042
-
12.765
80,00
448.732
164.934
1.534
184.966
Interests - %
Current
liabilities
Liabilities and equity
Noncurrent
liabilities
Equity
Total
40,00
367
(141)
-
708
50,00
31.857
4.057
1.636
120.422
50,00
340
130
-
6.504
66,67
(1.431)
53
(201)
(597)
50,00
4.579
(174)
-
11.952
50,00
1.164
647
-
24.572
50,00
87.820
4.592
-
56.046
50,00
12.450
1.052
-
94.966
50,00
213.873
66.531
12.033
95.733
45,80
7.024
350
-
1.355
45,80
339
-
-
128
45,80
2.388
56
-
322
45,80
5.738
(25)
-
936
45,80
2.748
-
-
1.284
45,80
2.314
40
-
364
45,80
345
-
-
181
45,80
10.870
579
-
1.214
50,00
8.553
558
-
22.538
50,00
1.455
10.552
-
31.419
50,00
1.897
4.546
-
8.872
85,00
1.299
36.814
-
52.818
80,00
325.097
117.618
5
75.547
40
Net
revenue
Eco Life Cidade Universitária
Empreendimentos Imobiliários S.A.
Profit or loss for the year
Other
Finance
income
Operating
income
and
expenses
(costs)
expenses
Costs
Income tax
and social
contribution
Profit
(loss) for
the year
0
3
(101)
(1)
-
-
(99)
13.176
(5.909)
(4.396)
10.149
(37)
(708)
12.195
Evisa Empreendimentos Imobiliários Ltda. controlada indireta)
(107)
288
(83)
260
(23)
(4)
331
3
(3)
-
73
(427)
(11)
(381)
Quadcity Bela Cintra Empreendimentos
Imobiliários Ltda.
(19)
(91)
(544)
754
13
(108)
6
839
(531)
(498)
1.936
(341)
(59)
1.346
5.816
(11.215)
(895)
5.781
985
(247)
225
Melnick Even Incorporações e Construções
S.A.
Fazenda Roseira Delta Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Gamma Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Kappa Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Zeta Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Beta Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Alpha Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Eta Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Epsilon Empreendimentos
Imobiliários Ltda.
Quadcity Maria Curupaiti Empreendimentos
Imobiliários Ltda.
Quadicity Zacaria de Goes Empreendimentos
Imobiliários Ltda.
Quadcity Melo Nogueira Empreendimentos
Imobiliários Ltda.
17.090
(7.226)
(7.127)
2.601
-
(1.259)
4.079
85.831
(100.828)
(3.227)
2.107
(1.179)
(2.680)
(4.855)
853
(478)
(308)
1.098
(297)
(216)
652
-
-
(2)
-
-
-
(2)
770
(615)
(181)
99
-
(31)
42
460
(339)
(155)
766
(234)
(198)
300
14.805
(8.528)
(2)
14
-
(88)
6.201
1.898
(1.294)
(134)
157
(45)
(75)
507
-
-
(2)
-
-
-
(2)
341
119
(517)
1.331
(207)
(175)
892
35.365
(25.928)
(1.104)
618
-
(734)
8.217
21.088
(16.174)
(290)
749
-
(462)
4.911
17.148
(12.215)
(500)
197
-
(346)
4.284
397.764
(282.816)
(35.840)
(7.977)
70.111
83
(12)
(21)
(18)
-
69
101
49.111
(44.351)
(2.805)
11.094
(2.397)
(1.204)
9.196
Evisa Empreendimentos Imobiliários Ltda. controlada indireta)
576
(89)
(174)
629
(217)
(20)
705
4
-
(12)
(66)
(696)
(3)
(679)
Quadcity Bela Cintra Empreendimentos
Imobiliários Ltda.
(3.980)
3.359
(939)
(2.203)
(172)
68
(3.867)
24.903
(13.818)
(694)
2.116
85
(531)
12.061
53.796
(48.618)
(710)
1.235
-
(1.084)
4.619
52.327
(35.680)
(10.318)
124
-
(1.067)
5.386
133.994
(111.265)
(2.777)
574
(1.639)
(3.308)
20.350
1.001
(595)
(169)
710
46
(178)
815
-
(20)
-
-
-
-
(20)
324
(223)
(182)
29
-
(16)
(68)
808
68
(125)
490
-
(116)
1.125
5.092
(6.007)
Eco Life Cidade Universitária
Empreendimentos Imobiliários S.A.
Melnick Even Incorporações e Construções
S.A.
Fazenda Roseira Delta Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Gamma Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Kappa Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Zeta Empreendimentos
Imobiliários Ltda.
41
Net
revenue
Fazenda Roseira Beta Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Alpha Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Eta Empreendimentos
Imobiliários Ltda.
Fazenda Roseira Epsilon Empreendimentos
Imobiliários Ltda.
Quadcity Maria Curupaiti Empreendimentos
Imobiliários Ltda.
Costs
Profit or loss for the year
Other
Finance
income
Operating
income
and
expenses
(costs)
expenses
Income tax
and social
contribution
Profit
(loss) for
the year
-
(5)
(2)
-
-
-
(7)
47
(49)
(74)
31
-
(3)
(48)
(1)
(23)
-
-
-
-
(24)
2.115
(2.263)
(301)
301
34
(149)
(263)
7.672
(5.845)
(834)
25
-
(178)
840
f) Advances for future capital increase
Advances for future capital increase made and not yet capitalized involve the following
subsidiaries:
Ativo
Subsidiaries
Associates
Controladora
2014
2013
Consolidado
2014
2013
292,912
13,805
306,717
13,805
13,805
293,627
62,417
356,044
62,417
62,417
No terms have been established for the conversion of advances for future capital increase
into shares based on a fixed advance amount for a fixed number of shares; accordingly, the
balances are not being classified as investment or equity, and remain classified as
noncurrent assets.
8.
PROPERTY, PLANT AND EQUIPMENT
a) Breakdown of the balances and depreciation rates
Annual
depreciation
rate - %
Computers
Facilities
Property improvements
Other
10
10
20
10
50
Cost
7,278
4,777
7,352
545
13,926
5,506
39,384
Company
2014
Accumulated
depreciation
Net
(3,360)
(2,510)
(4,753)
(334)
(8,775)
(277)
20,009
3,918
2,267
2,599
211
5,151
5,229
19,375
2013
Net
4,635
2,698
2,578
258
3,042
4,485
17,696
42
Annual
depreciation
rate - %
Computers
Facilities
Sales booths
Other
10
10
20
10
50
(*)
Cost
7.469
5.962
8.631
2.008
15.386
33.749
5.746
78.951
Consolidated
2014
Accumulated
depreciation
Net
(3.451)
(3.153)
(5.683)
(1.036)
(9.324)
(31.041)
(378)
54.066
4.018
2.809
2.948
972
6.062
2.708
5.368
24.885
2013
Net
5.247
3.373
2.961
1.177
3.098
9.756
5.657
31.269
(*) Expenses on building the sales booths and model apartments are capitalized if, and
only if, their estimated useful lives exceed one year and they are depreciated over a
useful life of approximately 24, which varies according to each project, and are
derecognized at the time of sale or dismantlement.
b) Changes in balances
Changes in property, plant and equipment in the year ended December 31, 2014 and 2013
are as follows:
Balances at the beginning of year
Additions
Computers
Facilities
Sales booths
Other
Write-off
Depreciation
Balance at end of year
Company
2014
2013
Consolidated
2014
2013
17,696
16,422
31,269
23,781
18
1,213
6
5,811
1,160
8,209
(996)
(5,534)
19,375
8
278
1,362
59
3,164
1,987
6,858
(1,174)
(4,410)
17,696
61
1,324
6
6,797
4,985
1,199
14,372
(3,090)
(17,667)
24,884
17
304
1,532
59
3,178
12,880
2,502
20,472
(1,346)
(11,638)
31,269
Of the consolidated depreciation amounts totaling R$17,667 (R$11,638 in 2013): (i)
R$12,033 (R$6,541 in 2013) was recorded as ‘Selling expenses’; and (ii) R$5,634
(R$5,097 in 2013) as ‘Administrative expenses’.
43
9.
INTANGIBLE ASSETS
a) Balance breakdown
Annual
amortization rate %
Software
5
Annual
amortization rate %
Software
5
Cost
21,044
21,044
Cost
22,942
22,942
Company
2014
Accumulated
amortization
Net
(12,731)
(12,731)
8,313
8,313
Consolidated
2014
Accumulated
amortization
Net
(13,640)
(13,640)
9,302
9,302
2013
Net
7,984
7,984
2013
Net
8,664
8,664
b) Changes in balance:
Changes in intangible assets in the year ended December 31, 2013 and 2012 are as follows:
Balances at the beginning of the year
Additions
Repayments
Write-off
Balance at the end of the year
Company
2014
2013
Consolidated
2014
2013
7,984
3,867
(778)
(2,760)
8,313
8,664
4,415
(781)
(2,996)
9,302
6,046
5,922
(1,896)
(2,089)
7,983
6,913
6,001
(1,919)
(2,331)
8,664
The consolidated amortization amount of R$2,996 (R$2,331 in 2013) was recorded as
‘General and administrative expenses’.
44
10. PAYABLES FOR PROPERTY ACQUISITIONS
Consolidated
2014
2013
Payables in local currency subject to
INCC variance
Other
Current liabilities
Noncurrent liabilities
101,468
24,034
125,502
95,423
2,966
98,389
37,357
88,145
38,087
60,302
The noncurrent portion matures as follows:
Consolidated
2014
2013
2014
2015
2016 and thereafter
30,195
57,950
88,145
13,147
10,197
36,957
60,302
11. BORROWINGS, FINANCING AND DEBENTURES
a) Borrowings and financing
Company
2014
2013
Consolidated
2014
2013
Land financing (i)
Mortgage loans (ii)
Bank Credit Note (CCB) (iii)
Certificates of Real Estate Receivables (CRIs)
(iv)
Other
227,954 130,332
381,171 218,576
904,270 1,123,175
227,954
130,332
381,171
218,576
Current
Noncurrent
115,272
5,563
510,406
464,947
545,317 343,844 1,054,453 1,007,635
51,146
51,146
318
499
318
499
660,589 349,407 1,564,859 1,472,582
All loans and financing are denominated in local currency and have the following features:
(i) Mortgage loan transactions are subject to the TR (a managed prime rate) fluctuation
plus 8,3% to 12% per year.
(ii) The Bank Credit Note (CCB) transaction is subject to 114% to 115% of the CDI rate
fluctuation per month.
45
(iii) The Certificates of Real Estate Receivables (CRIs) transaction is subject to the
interbank deposit (DI) rate plus 1.5% per year.
(iv) On October 24, 2014, the Company obtained loans in foreign currency for a period of
two years, through a debt in dollars, with two contracts: (i) Bank Credit Note (CCB) of
R$ 50,000 with payment of interest and principal on October 13, 2016 and (ii) Swap
Pre X DI in which the company is active in the rate of 3.68% per year + and passive
exchange variation in the CDI rate + 1.5% per year the cost of debt.
The carrying amounts of these borrowings approximate their fair values.
The following assets were pledged as collateral for the financing:
2014
Inventories (cost incurred on unsold units of the projects)
Receivables (units sold of financed projects)
Land
2013
1,240,265 854,143
9,010
8,093
1,240,265 871,246
The noncurrent portion matures as follows:
Company
2014
2013
2014
2015
2016
2017
2018 and thereafter
115,272
202,016
246,674
96,627
660,589
5,563
127,390
152,482
63,972
349,407
Consolidated
2014
2013
510,406
595,020
355,758
103,675
1,564,859
464,947
645,026
251,218
111,391
1,472,582
The long-term mortgage loan agreements include acceleration clauses in case of
nonperformance of obligations assumed, such as investment of the funds in the subject
matter of the contract, registration of a project mortgage, compliance with the construction
calendar, and other obligations assumed thereunder. The Company has been complying
with the obligations assumed in accordance with the contractual terms.
The funds from the transaction with CRIs were used to settled the first installment of the
second issuance of debentures, and this transaction is subject to the same restrictive
covenants applicable to the debentures (bullet (b) below).
46
b) Debentures
Company and
Consolidated
2014
2013
Fourth issue
Fifth issue
Principal
145,883
150,000
295,833
250,000
150,000
400,000
Unallocated transaction costs
Interest rate swap transaction
Interest payable
(845)
10,425
305,413
(1,523)
12,508
410,985
Current
Noncurrent
163,915
141,498
115,998
294,987
Features of debentures
Date of registration
Convertible
Maturity dates
Yield (annual rates) - %
Type of guarantee
Face value
Number of debentures issued
Amount issued
Fourth issue
Fifth issue
3/10/2011
No
1 series - 3/10/14 (50%) and 3/10/15 (50%)
2nd series - 3/10/14 (33.33%), 3/10/15
(33.33%) and 3/10/16 (33.33%)
10/3/2012
No
10/3/2015 (33.33%)
10/3/2016 (33.33%)
10/3/2017 (33.33%)
1st series - CDI + 1.95% spread
2nd series - CDI + 2.20% spread
Subordinated
10
25,000 (12,500 st
1 series and
12,500 - 2nd series)
250,000
CDI + 1.6
st
Subordinated
10
15,000
150,000
There are restrictive covenants, as defined in the final prospectuses for the public offering
of debentures issued by the Company dated March 10, 2011 and October 2012, related
mainly to corporate restructuring and business management aspects. The Company has
been complying with the covenants under the prospectuses, in accordance with the terms
set forth therein. Additionally, the debentures contain certain covenants that are periodically
monitored by Management and are being complied with at December 31, 2014 and 2013.
Transaction costs related to the fourth issuance of the debentures totaled R$845 and are
being recognized in profit or loss according to the maturity of the debentures. The balance
of such costs as at December 31, 2014 will be amortized as follows:
R$
2015
2016
Unamortized transaction costs
47
677
168
845
12. TAXES PAYABLE
Represented by taxes (PIS and COFINS) levied on the difference between real estate
development revenue recognized on an accrual basis and revenue taxed on a cash basis, which
is realized consistently with the expected realization of receivables, as shown below:
Company
2014
2013
Current
Noncurrent
165
165
165
165
Consolidated
2014
2013
38,228
8,880
47,108
45,433
9,559
54,992
13. ADVANCES FROM CUSTOMERS
Consolidated
2014
2013
Amounts received from sales of projects yet to be developed and
other advances
Units sold in projects under construction:
Recognized revenue
Installments received in cash
Closing balance
1,332
11,116
(12,748)
15,850
3,102
4,434
(12,694)
15,679
2,985
14,101
When the revenues to be recognized exceed the balances receivable from customers, the
difference is classified as advances from customers.
The amounts relating to barters of land by real estate project are shown below:
Consolidated
2014
2013
Barter for land
Recognized barter for land
Unrecognized barter for land
506,921
(330,345)
176,576
566,441
(349,011)
217,430
Physical barters intended for the delivery of a unit yet to be built are accounted for as a
component of the land inventory, with a balancing entry to trade receivables for disclosure
purposes.
48
14. PROVISIONS
Guarantees
(a)
Opening balances
Debited from income statement
Paid in the year
Closing balances
Current
Noncurrent
37,253
16,143
53,396
Consolidated
2014
Profit
Labor and
sharing
civil risks
(b)
(c)
25,000
23,208
(25,708)
22.500
15,436
17,118
32,554
2013
Total
Total
77,689
56,469
(25,708)
108,450
60,006
46,047
(28,364)
77,689
22,500
85,950
25,000
52,689
(a) Warranties
The Group provides warranty for the real estate in accordance with the law for a period of
five years. A provision is recognized at fair value for the estimated costs to be incurred in
the settlement of any possible claims.
The provision for warranty claims is recognized in the subsidiaries over project
construction as part of the total construction cost, and after its delivery the Group initiates
re reversal of the provision pursuant to the curve of the historical costs defined by the
Engineering area. The provision of technical assistance by the Parent company on the date
the services are provided, recognized in profit or loss, in line item ‘Other operating
expenses, net’.
(b) Profit sharing
The profit sharing program was approved in May 2010 and is based on individual and
Group-wide goals. The charge is presented in note 20.b). As at December 31, 2014 the
profit sharing amount is recorded by the Company is R$ 22,500 (R$25,000 in 2013).
(c) Labor and civil risks
Certain subsidiaries are defendants, whether directly or indirectly, to labor lawsuits
amounting to R$57,300 (R$52,056 in 2013), of which the Company’s management, as
supported by its legal counsel, classifies R$21,221 (R$21,416 as of December 31, 2013)
as a probable loss, R$29,636 (R$25,394 in 2013) as a possible loss, and R$6,443 (R$5,245
in 2013) as a remote loss, in the defenses filed by the Company. As reported by the legal
counsel in charge, the probable future cash outflows resulting from lawsuits classified as a
probable loss amount to R$20,433 at December 31, 2014 (R$6,817 in 2013).
Civil lawsuits having subsidiaries as defendants total R$188,359 (R$129,306 in 2013) and
refer mainly to: (i) revision of contractual clauses relating to adjustment and interest on
amounts being collected; and (ii) delays in the delivery of real estate units. As reported by
the legal counsel in charge, unfavorable court decisions are expected to be rendered for
some of these lawsuits, in the amount of R$12,121 (R$9,249 in 2013).
49
The provision for civil and labor risks at December 31, 2014 totaled R$32,554 (R$15,436
in 2013).
15. DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION
The Group has the following tax liabilities:
a)
Taxable income
Against the backdrop of the Parent's current operations, which substantially comprise
investments in other companies, no tax assets were recorded on: (i) the total accumulated
balance of tax loss carryforwards; (ii) the balance of temporarily nondeductible expenses
in determining taxable income; and (iii) the unamortized goodwill. As a result of the
merger, deferred income tax on such credits was recognized within the limit of liabilities
related to the taxable portions on the difference between the profit from real estate
operated taxed on a cash basis and the amount recognized on an accrual basis, thus
cancelling its effect on asset and liability accounts.
b)
Deemed income and RET
Represented by the income tax and social contribution on the difference between the real
estate development revenue recognized on an accrual basis and revenue taxed on a cash
basis of the companies taxed based on the deemed cost or the RET (note 2.16), whose
changes are as follows:
Consolidated
2014
2013
Opening balance
Expenses in profit or loss
Closing balance
50,038
(7,098)
42,940
53,964
(3,926)
50,038
The taxation of the difference between income recognized on a cash basis and income
recognized on the accrual basis is made according to the expected realization of trade
receivables, as shown below:
2014
In the following year
In subsequent years
34,845
8,095
42,940
2013
41,340
8,698
50,038
16. RETIREMENT BENEFIT OBLIGATIONS
In April 2008, the Company implemented a private VGBL (cash value life insurance) pension
plan. Under the plan rules, the cost is equally shared between the employer and the employees,
so that the Company’s share is equivalent to 100% of the employee’s contribution according to
a contribution scale based on salary ranges from 1% to 6% of an employee’s monthly
compensation. The contributions are invested in the following funds:
50
 UBB AIG Corporate I FIQ FI Especialmente Constituídos Renda Fixa.
 UBB AIG Corporate IV FIQ FI Especialmente Constituídos Renda Fixa.
 PREVER Platinum RV 49 FIQ de FI Especialmente Constituídos Multimercado (Balanced
fund).
The plan is being managed by Itaú Vida & Previdência and the contributions made by the
Company totaled R$427 (R$526 in 2013).
17. BALANCES WITH PROJECT PARTNERS
Company
2014
2013
Projects:
Duo Alto de Pinheiros
Particolare
Other
Consolidated
2014
2013
1,016
157
1,520
2,693
876
154
(2,414)
(1,384)
1,016
157
(2,028)
(855)
50
564
33,542
761
34,917
826
3,567
564
20,450
761
26,168
52
564
36,639
761
38,016
826
3,567
564
24,238
761
29,956
3,048
3,048
38,136
4,286
4,286
33,147
3,048
(2,108)
(9,013)
(8,073)
28,559
4,286
(6,446)
(4,755)
(6,915)
38,151
(15)
38,136
33,162
(15)
33,147
39,673
(11,114)
28,559
33,380
(11,194)
22,186
876
154
(860)
170
Partner loans:
Outher
Conx Empreendimentos Imobiliários
ARC Engenharia Ltda.
Melnick Participações Ltda.
Krill Empreendimentos Imobiliários Ltda.
Consortiums:
Consórcio Roseira
Consórcio Rossi
Colinas do Morumbi
Noncurrent assets
Current liabilities
22,186
The Company participates in real estate development projects together with partners, directly
or through related companies. These projects’ management structure and cash management are
centralized in the company leading the project, which also oversees the construction and
budget progress. Thus, the project’s leader ensures that the necessary funds are used and
allocated as planned. The sources and uses of the project’s funds are reflected in these
balances, to the extent of the equity interest held therein, which is not subject to inflation
adjustments or financial charges and do not have a fixed maturity date.
51
The average term for the development and completion of the projects in which the funds are
invested is three years, always based on the plans and time budgets of each work.
This fund allocation method allows that the business terms agreed upon with each partner and
for each of project to be concentrated in specific frameworks, more appropriate for each
project’s features.
The balances of loans from partners Melnick Participações Ltda. and Consórcio Roseira are
subject to 100% of the CDI fluctuation plus interest of 3.5% to 4% per year and maturities
renegotiable to the long term, according to the average development and completion period of
the related projects, except for balances with Brisa Empreendimentos Ltda., Villa Reggio
Empreendimentos Imobiliários Ltda., and Consórcio Roseira, which are not subject to any
financial charges.
18. SHARE CAPITAL AND RESERVES
Fully subscribed and paid-in capital is represented by 233,293,408 registered common shares,
without par value, totaling R$1,683,266.
Pursuant to the Company's bylaws, the Board of Directors is authorized to approve a capital
increase of up to R$ 2,500,000 through the issue of registered common shares, without par
value.
18.1. Changes in the number of shares
On April 28, 2014 the Board of Directors approved the capital increase of the Company
within the authorized capital limit established by the Bylaws and on behalf of all
shareholders of the Company, without the issuance of new shares by capitalization of
reserve retained earnings of the Company in the amount of R $ 600,000. The Company's
capital increased from R $ 1,083,266 to R $ 1,683,266.
18.2. Treasury and restricted stock
The Board of Directors meeting held on August 15, 2013 approved the purchase of
Company shares to be delivered to its employees under the Variable Compensation Plan.
In the nine-month period of 2014, the Company acquired the amount of 10,779,700
million common shares for R$62,330 at market price, according to the "Repurchase
Program" approved by the Board of Directors on February 24, 2014.
The "Repurchase Program" aims maximizing value to the shareholders, objecting the
share price of the Company on the BMF & BOVESPA SA - Securities, Commodities
and Futures, as well as use in plans option to purchase shares of the Company.
On September 30, 2014, the balance of treasury shares totaling 8,110,120 million
shares.
52
Treasury
2014 Purchase
Concession Plan Long Term Incentive ILP (*)
Stock options exercised (note 18.3)
On December 30, 2014
10,779,700
(2,513,700)
(155,880)
8,110,120
Grant of
restricted
stock
Total (R$)
-
18,124
18,124
62,330
(18,124)
(890)
43,316
(*) Concession Plan Long Term Incetive- ILP
On April 29, 2014 the first grant was made in the "Plan for Long Term Incentive - ILP",
by granting shares of the Company to eligible employees - statutory and non-statutory
directors and managers. The benefit will be awarded annually from 2014. The ILP does
not provide cash payments, being fully payed in shares, with trading restriction.
The beneficiary may not transfer the shares acquired upon exercise of the option within a
period of two years after the signing of the option agreement. After this period, the
transfer restriction ("Restriction of Transfer") is subject to the following vesting period:
(i) 1/3 (one third) of the shares acquired will be free of restriction Transfer from the
second anniversary of the signing of the contract;
(ii) 1/3 additional 1/3 (one third) of the shares acquired will be free of restriction
Transfer from the 3rd anniversary of the signing of the contract; and
(iii) 1/3 (one thirdh) remaining shares will be acquired free from the restriction of
transfer from the 4th anniversary of the signing of the contract.
The exercise price for each Share is equivalent to the value of the average price of the
Company's shares during the period of sixty days immediately preceding the grant of
options to purchase shares of the Company options to beneficiaries.
In any case of termination of the beneficiary, the options have not been exercised shall
be automatically canceled. In the event of termination of employment or dismissal by the
Company contract, the Beneficiary shall be obliged to sell to the Company, subject to
applicable law, all (but not less than all) the shares acquired by it which are still subject
to the period of transfer restriction on the date of their dismissal.
The total amount of ILP is recorded as "Restricted Stock and Treasury" and that the
appropriation of values will occur monthly until the maturity date of the plan at the end
of four years, and will be recognized in income under "Administrative expenses".
18.3. Stock options
The meeting of the Board of Directors held on March 28, 2011 resolved the following:
a) To revoke the Company’s Stock Option Plan Regulation approved by the Board of
Directors’ meeting held on September 14, 2007.
b) Approve of the new rules of the Company's Stock Options Plan, which covers
53
Company employees, service providers and officers, who are indicated and approved
by the Board of Directors. New beneficiaries may be included on an annual basis. In
the event of termination of employment without cause, or resignation, the stock
options for which the vesting periods have elapsed by the beneficiary's termination
date may be fully exercised within 15 days from the termination date, provided that
this is made within the exercise period. In the event of termination with cause, the
options that have not been exercised by the beneficiary's termination date will be
cancelled, whether the vesting periods have elapsed or not; and
c) To grant Company stock options.
d) On the same date, the Company granted stock options to employees, service
providers and officers (beneficiaries) totaling 4,343,263 Company common shares
(of which 1,946,438 to officers), corresponding to 1.86% of the capital, at a strike
price of R$5,71 per share. The stock options can be exercised by the following
vesting periods:
(iv) 40% of total: June 30, 2014, which must be exercised by March 31, 2015.
(v) 60% of total: June 30, 2015, which must be exercised by March 31, 2016.
The exercise of the stock options must be paid by the beneficiary, who will then receive
the acquired Company shares. According to Plan rules, the beneficiaries will receive
Company shares and there is no provision for payment through any other method.
 Changes in stock options
The were no changes in the number of stock options and their related weighted average
prices, are shown below:
Average strike
price per share - R$
At December 31, 2013
Termination of beneficiaries' employment before the
end of the vesting period
At December 31, 2014
5.71
5.71
Stock
options
4,442,097
(91,132)
(155,880)
 Pricing and accounting methodology
The fair value of the options granted was estimated using the Black-Scholes option
pricing model. The estimate was made as of the grant date and totaled R$19,157, of
which R$17,738 were recognized through December 31, 2014, presented as ‘Other
operating expenses’ as a balancing item to shareholders’ equity. The assumptions used
in the pricing of the stock option plan were: (i) volatility calculated based on historical
observations of asset prices using the same observation period as that corresponding to
the remaining period for exercise of the option, whereby an average volatility of 53.56%
was obtained; (ii) market risk-free interest rate for the option period at the time of grant,
which ranged between 12.88% and 12.95%; and (iii) life as mentioned in b)
corresponding to each series.
54
As from 1 July 2014, part of the plan options became exercisable, and the period ended
September 30, 2014 were exercised 155,880 shares in the amount of R $ 890.
The total accumulated charges related to said plans amount to R$30,298 (R$26,518 at
December, 31 2013), fully presented as a balancing item to shareholders’ equity.
18.4. Dividends
Pursuant to the Company's bylaws, after the offset of losses and the transfer to legal
reserve, 25% of profit for the year is allocated to the payment of the mandatory annual
dividend.
The calculation of dividends at December 31, 2014 and 2013 is as follows:
2014
Profit for the year
Recognition of legal reserve
Calculation base
Minimum statutory dividend - %
Dividend proposed by management - R$0.27 per share
(R$0.29 per share in 2013)
2013
252,412 282,886
(12,621) (14,144)
239,791 268,742
25
25
59,948
67,186
The Annual Shareholders’ Meeting held on May 20, 2014 approved the payment of
dividends as proposed by Management on May 30, 2014, totaling R$67,186 (which
corresponds to R$0.29 per share).
Under the accounting practices adopted in Brazil and IFRSs, the minimum mandatory
dividends are recognized at yearend even if dividends have not been officially declared,
which normally happens in the following year.
18.5. Earnings reserves
a) Legal
The legal reserve is calculated as 5% of profit for the year after the offset of
accumulated losses, as prescribed by Law 6404/76.
b) Earnings retention
As indicated in note 26, as at December 31, 2014 the commitments related to the
budgeted cost to be incurred on units sold amount to R$1,326,016 (R$1,504,676 in
2013) and on units for sale amount to R$ 1,252,910 (R$1,209,991 in 2013), totaling
R$2,578,926 (R$2,714,667 in 2013) in costs to be incurred related to launched
projects. As in pervious years, the Company’s management is proposing that the
entire remaining profit, totaling R$179,843, is allocated to the earnings retention
reserve to cover these commitments.
55
19. REVENUE
The reconciliation of gross sales and services with net revenue is as follows:
Company
2014
2013
Gross operating revenue:
Development and resale of properties
Services provided
Deductions from gross revenue
Net operating revenue
1,611
71,903
(7,048)
66,466
3,611
78,355
(7,473)
74,493
Consolidated
2014
2013
2,215,478 2,460,942
50,328
60,089
(59,911)
(62,044)
2,205,895 2,458,987
20. COSTS AND EXPENSES BY NATURE
a) Costs
Company
2014
2013
Land
Works
Development
Maintenance under warranty
Construction management
Finance cost allocated to cost (note 10)
1,063
108,190
109,253
1,971
101,443
103,414
Consolidated
2014
2013
354,147
896,994
84,851
10,719
95,042
149,902
1,591,655
439,972
995,902
90,184
10,200
99,272
128,118
1,763,648
b) Selling, general and administrative expenses, and management compensation
Company
2014
2013
Employee and management benefits
(note 22)
Travel and commuting
ILP
Consulting
Sundry consumptions
Bonuses (note 15)
Selling expenses
On-site sales office in construction
progress
Others selling expenses
Classified as:
Selling expenses
Management fees
Consolidated
2014
2013
79,889
2,216
5,987
25,733
26,878
23,208
5,724
78,034
2,646
20,055
22,615
31,598
4,472
94,463
2,690
5,987
32,891
30,045
27,507
90,656
94,733
2,935
25,227
25,880
31,598
80,105
4,583
174,218
5,905
165,325
50,217
36,703
371,159
43,305
39,983
343,766
10,377
156,524
7,387
174,218
10,377
147,524
7,424
165,325
177,576
186,196
7,387
371,159
163,392
172,950
7,424
343,766
56
21. EXPENSES ON EMPLOYEE AND MANAGEMENT BENEFITS
Salaries
Finance
Training
Defined contribution plan costs
Other benefits
Number of employees
Company
2014
2013
Consolidated
2014
2013
47,889
23,936
1,184
261
6,619
79,889
46,792
23,327
611
368
6,936
78,034
58,289
26,429
1,357
261
8,127
94,463
59,819
25,349
926
368
8,271
94,733
1,487
1,736
2,035
2,241
22. OTHER OPERATING EXPENSES, NET
Labor and tax contingencies
Court settlements
Stock options (note 19.2.b))
Warranty expenses
Icome from sale of certificate - CEPAC
Other income (expenses)
Company
2014
2013
Consolidated
2014
2013
(11,530)
(201)
(3,780)
(15,897)
2,943
(28,465)
(17,118)
1,222
(3,780)
(16,654)
(1,366)
(34,962)
(7,510)
(3,028)
(18,852)
5,631
2,378
(21,381)
(7,510)
(3,028)
(17,860)
5,631
(78)
(22,845)
23. FINANCE INCOME (COSTS)
Company
2014
2013
Finance costs:
Interest
Losses - interest rate swap
RET
Commissions, brokerage and discounts
Other finance costs
Finance income:
Interest on short-term investments
Interest received
Charges on receivables
Other financial income
Finance income (costs)
57
Consolidated
2014
2013
(98,508)
(784)
(2,511)
(1,373)
(103,176)
(64,562)
183
(2,054)
(2,289)
(68,722)
(15,832)
(784)
(11,950)
(4,539)
(1,834)
(34,939)
(17,307)
183
(8,266)
(4,661)
(8,569)
(38,620)
6,273
1
6,072
12,346
(90,830)
4,287
1,088
5,375
(63,347)
74,273
8,520
61,222
6,500
150,515
115,576
50,083
6,693
26,762
2,354
85,892
47,272
24. INCOME TAX AND SOCIAL CONTRIBUTION EXPENSE
Reconciliation of income tax and social contribution statutory and effective tax rates:
Consolidated
2014
2013
Revenues from direct and indirect subsidiaries taxed under the
deemed income and earmarked assets regime - cash basis
Effect of current income tax and social contribution for the year (a)
2,213,867
(49,347)
2,457,331
(49,588)
Company
2014
2013
Income before income tax and social contribution
Tax rate - 34% (b)
Effects on deductions (equity in subsidiaries)
Unrecognized tax credit
252,412
(85,820)
196,325
110,505
282,886
(96,181)
193,718
97,537
(a) The application of income tax and social contribution rates under the deemed income
regime and the earmarked assets regime result in an average rate of 3.08% and 1.98%,
respectively, on taxable revenues.
(b) The Company adopted the taxable income regime and does not record tax credits; they are
only recorded when future earnings are realized.
25. EARNINGS PER SHARE
a) Basic
Basic earnings per share are calculated by dividing the income attributable to the
Company’s shareholders by the weighted average number of common shares outstanding
during the year.
2014
Profit attributable to Company’s shareholders
Weighted average number of common shares issued (thousands)
Basic earnings per share
2013
252,412 282,886
230,860 233,293
1.09
1.21
b) Diluted
Diluted earnings per share are calculated by adjusting the weighted average number of
outstanding common shares to assume the conversion of all potential diluted common
shares. The number of shares calculated as described above is compared to the number of
shares issued, assuming the exercise of the stock options.
58
Profit attributable to Company’s shareholders
Weighted average number of common shares held by the
shareholders during the year
Average market price of the common share during the year
Weighted average number of shares subject to option during the
year
Exercise price of shares subject to option during the year - R$
Weighted average number of shares that would have been issued at
average market price
Diluted earnings per share - R$
2014
2013
252,412
282,886
230,860
6,47
233,293
8,77
-
-
1.09
1.21
26. COMMITMENTS
a) Property development commitments
According to the Real Estate Development Law, the Group has the legal commitment to
complete real estate development projects that have been approved and are no longer
subject to a termination clause under which the Group would be able to cancel the project
and return to the clients the amounts received.
No project under construction is under a termination clause. The costs currently estimated
to be incurred by the completion of the aforementioned projects are as follows:
Consolidated
2014
2013
Completed projects
Projects under construction
Recognized revenue
Installments received
Recognized barter for land
Barter for land
608,651
498,372
1,964,305
2,392,136
3,270,983
4,122,612
(1,306,678) (1,730,476)
(330,344)
(506,921)
176,577
(349,011)
(566,441)
217,430
(3,102)
(2,985)
Portion classified in advances from customer (note 14)
Unrecognized sales revenue (*)
1,938,463
2,151,654
Total receivables
4,177,973
4,690,167
(*) Subject to the effects of the fair value adjustment when allocated.
The main information related to the other projects under construction, arising from units
sold, can be shown as follows:
59
Consolidated
2014
2013
Unearned sales revenue
Unrecognized sales revenue (i)
Budgeted cost to be incurred on units sold and unrecognized (ii)
1,938,463 2,151,654
176,577
217,430
2,115,040 2,369,084
(1,326,016) (1,504,676)
789,024
864,408
(i) Subject to the effects of the fair value adjustment when allocated.
(ii) Does not correspond to accounting information; therefore, it consists of unaudited
information.
The costs incurred and to be incurred of projects under construction can be shown as
follows:
Consolidated
2014
2013
Cost incurred on units in inventory
Budgeted cost (*) to be incurred (units in inventory)
Cost of units in inventory
1,379,643 1,069,235
1,252,910 1,209,991
2,632,553 2,279,226
(*) Does not correspond to accounting information; therefore, it consists of unaudited
information.
From the costs to be incurred, certain expenses have already been committed to, as follows:
Consolidated
2014
2013
Acquisition of elevators
Other costs
Total committed but not yet incurred costs
20,346
364,420
384,766
25,309
849,462
874,771
b) Land purchase commitments
The Company has undertaken commitments to purchase land, which have not yet been
recorded due to pending matters to be resolved by the sellers in order for the final deed and
the respective transfer of ownership to the Company or its subsidiaries or partners to be
accomplished. These commitments total R$875,930 (R$594,202 at December 31, 2013), of
which R$566,678 (R$368,783 at December 31, 2013) refer to barters for real estate units to
be built, and R$309,252 (R$225,420 at December 31, 2013) refer to the share in the income
from sales of the respective projects.
60
c) Operating lease commitments - Group's company as lessee
The Company leases the offices where the head office and the branches are located. The
lease periods are four years and most of the lease agreements is renewable at market value
at the end of the lease period.
The Group has to give prior notice to terminate these agreements; the total minimum lease
payments, pursuant to these cancellable operating leases, amount to R$7,657 (R$8,143 in
2013).
27. RELATED-PARTY TRANSACTIONS
a) Intragroup loans
Company
Liabilities and
shareholders’
Assets
equity
2014
2013
2014
2013
Wholly-owned subsidiaries
Even Brisa Kappa Empreendimentos
Imobiliários Ltda.
Even Brisa Delta Even
Empreendimentos Imobiliários Ltda.
Even Brisa Zeta Even Empreendimentos
Imobiliários Ltda.
Even Brisa Eta Empreendimentos
Imobiliários Ltda.
Even Brisa Omega Empreendimentos
Imobiliários Ltda.
Even Brisa Epsilon Empreendimentos
Imobiliários Ltda.
Cygnus Even Empreendimentos Ltda.
Subsidiaries with third parties’ interests
Aliko Investimentos Imobiliários Ltda.
Nova Suíça Empreendimentos
Imobiliários Ltda. (*)
Subsidiaries
Other related parties:
ABC T&K Participações S.A.
Other
Balances presented in current
Balances presented in noncurrent
Consolidated
2014
Assets
2013
3,569
4,464
-
-
-
-
-
28
-
-
-
-
65
65
-
-
-
-
-
3.504
-
-
-
-
-
89
-
-
-
-
-
12
-
-
-
-
154
20
239
432
154
20
4.304
-
-
154
154
154
154
37
37
-
-
37
37
37
37
3,000
3,000
3,000
3,000
37
37
7
(101)
(94)
3,751
7
(101)
(94)
8,707
296
296
3,296
288
288
3,288
577
(101)
476
667
522
(101)
421
612
3,751
8,707
3,296
-
3,288
-
667
612
The balances with subsidiaries are free from financial charges and have no predetermined
maturities.
61
The consolidated balances with jointly controlled entities arise from the proportionate
consolidation of the accounting information, except the balance of the parent company with
the subsidiary Nova Suiça Empreendimentos Imobiliários Ltda., which was fully eliminated
during the consolidation process because the partner also had a balance with this subsidiary
under common control proportionately to its equity interest held.
b) Management compensation
Key management personnel include directors and officers. Compensation paid to
management, including bonuses, is as follows:
2014
Board of Directors
Executive committee:
Payroll and related taxes
Contributions to the cash value life insurance plan (VGBL)
Other benefits
Accrued management bonuses (note 14 - officers’ portion)
Plan Long Term Incentive - ILP recorded (nota 18.2)
Stock options (note 18.3)
2013
574
398
6,480
91
242
7,387
6,716
41
269
7,424
9,000 14,100
3,107
2,122 1,815
21,616 23,339
28. FINANCIAL RISK MANAGEMENT
28.1. Financial risk factors
The Group's activities expose it to a variety of financial risks: market risk (including
interest rate on real estate credit financing, cash flow interest rate risk and price risk of
certain assets measured at fair value), credit risk and liquidity risk. The Group's overall
risk management program focuses on the unpredictability of financial markets and seeks
to minimize potential adverse effects on the Group's financial performance. Except for
the contracted swap, described in note 2.7, the Group does not use derivative financial
instruments to hedge risk exposures.
Risk management is carried out by the Group's central treasury department, which
identifies, assesses and hedges financial risks in cooperation with the subsidiaries.
a) Market risk
(i) Foreign exchange risk
This risk is regarded as practically nil, as the Group does not have assets and
liabilities denominated in foreign currencies, nor it depends significantly on
imported material in its production chain. Additionally, the Group does not
index its sales to foreign currencies.
62
(ii) Risk of volatility in the price of debentures
The Group is exposed to the risk of changes in the price of debentures as a result
of the investments held by the Group and classified in the consolidated balance
sheet as measured at fair value through profit or loss. The Group's investments
in debentures are basically from financial groups.
Based on the assumption that the debentures present a variation of 5%, with all
other variables held constant, the impact of price changes on profit for the year,
after the calculation of income tax and social contribution, amounts to R$3,011.
(iii) Cash flow risk
Trade receivables from completed units, as referred to in note 5.(a), accrue
interest of 12% per year. Interest rates on financial investments are mentioned in
note 5.
The interest rates on payables for purchase of properties, borrowings and
financing, debentures and assignment of receivables are described in notes 11,
12.(a), 12.(b), and nº 6.(b), respectively.
In addition, as referred to in note 17, the portion of balances with related parties
and partners in projects are not subject to financial charges.
The Group analyzes its interest rate exposure on a dynamic basis. Various
scenarios are simulated taking into consideration refinancing, renewal of
existing positions, alternative financing and hedging. Based on these scenarios,
the Group calculates the impact on profit and loss of a defined interest rate shift,
as further detailed in note 28.1.(d).
The liabilities subject to floating interest rates are: (1) real estate financing,
which is subject to the variation of the TR interest rate, the volatility risk of
which is regarded as low by Management; (2) debentures and borrowings and
financing, which are partially subject to the CDI fluctuation, for which financial
investments provide a natural hedge, mitigating the impacts related to volatility
risks; and (3) payables for purchase of properties, which are subject to the INCC
variance, for which trade receivables from units under construction provide a
natural hedge.
Occasionally the Group also enters into interest rate swaps to hedge the interest
rate risk arising from debentures issued and subject to the CDI rate fluctuation.
b) Credit risk
The credit risk is managed on a group-wide basis. Credit risk arises from trade
receivables, deposits in banks and financial assets at fair value through profit or loss.
The credit quality of financial assets is disclosed in details in note 6 (c).
c) Liquidity risk
Cash flow forecasting is performed in the operating entities of the Group and
aggregated by the Finance Department, which monitors rolling forecasts of the
63
Group's liquidity requirements to ensure it has sufficient cash to meet operational
requirements. It also keeps sufficient funds in its credit facilities available at any time
so that the Group is able to comply with the limits and loan clauses (when applicable)
with respect to any of its credit lines. Such forecasting takes into consideration the
Group's debt financing plans and compliance with contractual terms.
Surplus cash held by the operating entities above the balance required for working
capital management is transferred to an exclusive fund to be invested by the Group in
interest-earning current accounts, time deposits, money market deposits and
marketable securities, choosing instruments with appropriate maturities or enough
liquidity to provide sufficient headroom as determined by the above-mentioned
forecasts.
The table below analyzes the Group's non-derivative financial liabilities into relevant
maturity groupings based on the remaining period from the balance sheet date to the
contractual maturity date. Derivative financial liabilities are included in the analysis if
their contractual maturities are essential for an understanding of the timing of the cash
flows. The amounts disclosed in the table are the carrying amounts at the dates
indicated.
Up to
December
31, 2014
At December 31, 2014:
Loans - mortgage loans
Loans - land financing
Loans - certificates of real estate
receivables
Leases
Swaps
Payables for property
acquisitions
Debentures
Loans - mortgage loans
Loans - land financing
Loans - FINAME
Loans - certificates of real estate
receivables
Payables for property
acquisitions
Debentures
-
Consolidated
Between
January, 1
Up to
st and
From of
December December January, 1
31, 2015
31, 2016
st 2017
395,134
114,084
393,004
118,624
116,132
148,463
-
1,007
181
-
32,110
137
51,146
194,837
-
-
37,357
163,915
30,195
91,498
57,950
50,000
517,636
94,708
32,500
98,736
118,819
32,500
47,418
65,000
181
137
-
13,147
153,485
47,154
91,502
50,000
459,229
5,049
332
181
38,087
115,998
d) Sensitivity analysis of fluctuations in interest rates and other
financial asset and liability liabilities
64
Consolidated data
Trade receivables (note 5.(a))
IGP-M/IPCA
INCC
(note 5.(b))
IGP-M/IPCA
Loans (note 11.(a))
CDI
Assets
2014
Liabilities
Assets
2013
Liabilities Probable
2,013,684
373,269
1,640,415
-
2,275,568
395,553
1,880,015
-
4.426
4.426
-
-
1,564,859
660,589
904,270
-
- 13,717
- 113,925
2014
25%
50%
10,288
85,444
6,859
56,963
(203)
(244)
-
1,472,582
349,407 (68,120) (85,150)
1,123,175 (7,741) (9,676)
(102,180)
(11,611)
295,833
295,833
-
400,000
400,000 (30,506) (38,133)
(45,760)
37,660
37,660
-
78,185
-
3,883
2,913
1,456
-
125,502
101,468
24,034
-
98,389
95,423
2,966
(7,047)
(883)
(8,809)
(1,104)
(10,570)
(1,380)
10,462
10,462
(163)
TR
Debentures (note 11.(b))
CDI
Intragroup loans (note 17)
CDI
Land payables (note 10)
INCC
IGP-M
In the sensitivity analysis for the next twelve months, the Company classified as
probable the fluctuations in the CDI, TR, INCC, IGP-M and IPCA rates accumulated
at December 31, 2014. The additional scenarios consider, in the case of financial
assets, a 25% and 50% stress of the percentage fluctuations. For financial liabilities,
the sensitivity analysis considers a 25% and 50% stress of the indexed amounts.
The Company seeks to avoid any mismatches in terms of currencies and interest rates.
The liabilities are mostly indexed to inflation, CDI or TR. There are no assets or
liabilities denominated in foreign currencies or a significant dependence on imported
materials in the production chain. The Company seeks to strike a balance between the
indices of assets and liabilities, keeping loans receivable and cash invested in CDI to
balance the liabilities and the receivables indexed to the INCC, to balance the
construction costs to incur.
28.2. Capital management
The Group's purposes in managing capital are to safeguard its ability to continue as a
going concern, in order to provide returns for stockholders and benefits for other
stakeholders, while maintaining an optimal capital structure to reduce this cost.
In order to maintain or adjust the capital structure, the Group may adjust the amount of
dividends paid to stockholders, return capital to stockholders or, also, issue new shares
or sell assets to reduce, for example, indebtedness.
Consistent with others in the industry, the Group monitors capital on the basis of the
gearing ratio, calculated as net debt divided by total capital. Net debt is calculated as
total borrowings (including current and noncurrent borrowings and debentures, as shown
in the consolidated balance sheet) less cash and cash equivalents, financial assets at fair
value through profit or loss and restricted accounts. Total capital is calculated as equity
as shown in the consolidated balance sheet plus net debt.
65
In 2014, the Company's strategy, which was unchanged since 2013, was to maintain the
gearing ratio within 30% to 40%. Gearing ratios at December 31, 2014 and 2013, in
accordance with the consolidated financial statements, can be summarized as follows:
Consolidated
2014
2013
Total borrowings and debentures (notes 11.a) and 11.b))
1,870,272
1,883,567
Assignment of receivables (note 5.b))
Short-term investments
Restricted accounts
Net debt
Total equity
4,426
(6,471)
(714,792)
1,153,435
10,462
(48,457)
(717,523)
1,128,049
2,419,495
2,315,876
Total capital
3,572,930
3,443,925
32.3
32.8
Financial gear ratio - %
28.3. Fair value estimate
It is estimated that the carrying amounts of trade receivables and trade payables and for
acquisition of properties, less impairment loss, approximate their fair values. The same
assumption is valid for financial liabilities.
The Group adopted CPC 40/IFRS 7 for financial instruments that are measured in the
balance sheet at fair value, which requires disclosure of fair value measurements by level
of the following fair value measurement hierarchy:
 Prices quoted (unadjusted) in active markets for identical assets or liabilities (Level
1).
 In addition to the quoted prices, included in level 1, inputs used by the market for
assets or liabilities, whether directly (such as prices) or indirectly (or derived from
prices) (level 2).
 Inputs for assets or liabilities that are not based on the data adopted by the market
(i.e., unobservable inputs) (Level 3)
The following table presents the Group's assets that were measured at fair value through
profit or loss (there are no liabilities of this type), which are substantially represented by
the assets of the exclusive funds for investments of financial resources by the Group
(note 4).
66
Consolidated
Level 1
LFTs
LFTs
Treasury Bills
Net assets at December 31, 2014
LFTs
LFTs
Debentures of power companies
Net assets at December 31, 2013
Level 2
Total
balance
70,943
91,246
-
91,246
70,943
165,986
257,428
494,357
129,189
220,435
165,986
129,189
257,428
714,792
49,348
101,734
-
101,734
49,348
336,566
385,915
228,733
1,012
331,479
336,567
228,733
1,012
717,394
The Group does not have financial assets measured at Level 3.
The fair value of the financial instruments traded in active markets (such as held-fortrading and available-for-sale securities) is based on market prices at the end of the
reporting period. A market is considered active if quoted prices are readily and regularly
available from an exchange, dealer, broker, industry group, pricing service or regulatory
agency, and those prices represent actual and regularly occurring market transactions on
an arm’s-length basis. These instruments are included in Level 1.
The fair value of financial instruments not traded in active markets (e.g., over-thecounter derivatives) is determined using valuation techniques. These techniques make
maximum use of market inputs, where available, and rely as little as possible on entityspecific inputs. If all relevant inputs required for the fair value of an instrument are
adopted by the market, the instrument will be included in Level 2.
If one or more relevant inputs are not based on data adopted by the market, the
instrument will be included in level 3.
67
Specific valuation techniques used to measure financial instruments, according to Level
2 rules, include:

quoted market prices or quotations of financial institutions or brokers for similar
instruments.

the fair value of interest rate swaps is measured at the present value of future cash
flows estimated based on the yield curves adopted by the market.
29. FINANCIAL INSTRUMENTS PER CATEGORY
Except for financial assets at fair value (notes 28.3 and 4), the other financial assets are
classified as ‘Loans and receivables’, and liabilities as ‘Other financial liabilities’.
30. CREDIT QUALITY OF FINANCIAL ASSETS
The credit quality of financial assets may be assessed by reference to the respective guarantees:
Company
2014
2013
Trade receivable:
Not collateralized
Collateralized
Total trade receivables
Financial assets at fair value through profit or loss:
Backed by debentures of financial groups
Debentures of leasing and power companies
Backed by private securities
Backed by LTNs or LFTs
Total financial assets at fair value through profit or loss
Consolidated
2014
2013
3,647
3,647
3,666
3,666
1,663
2,012,021
2,013,684
4,025
2,274,278
2,278,303
5,648
6,570
12,218
35,593
47,811
876
876
129,187
91,246
220,435
494,357
714,792
228,733
101,734
1,012
331,479
385,915
717,394
The consolidated balances of financial assets backed by private securities at December 31,
2014 are classified as follows, based on the rating:
“Rating” Fitch
Balance
CDBs
AAA
AA
AA-
86,085
41,081
2,024
129,190
AA+
AAA
26,925
64,321
91,246
68
Treasury Bills
AA
AA+
AAA
AAAa1
10,570
48,579
157,257
39,507
1,515
257,428
The Company's and its subsidiaries' funds are invested so that they meet the investment limits
per risk rating, as established by in the financial policy approved by the Board of Directors.
31. SEGMENT INFORMATION
Management defined the Group’s operating segments based on the reports used by
management for strategic decision-making.
The executive committee analyzes the business by segmenting it from a regional standpoint.
Geographically, the Company mainly operates in the States of São Paulo, Minas Gerais, Rio de
Janeiro, and Rio Grande do Sul.
The reportable operating segments derive their revenue primarily from the sale of real estate
properties.
The executive committee assesses the performance of the real estate development operating
segments based on the measurement of gross profit adjusted for selling expenses, as
summarized below:
SP
Gross operating revenue
Cost of sales
Gross profit
Selling expenses
Gross profit adjusted for selling expenses
1,539,892
(43,364)
1,496,528
(1,040,868)
455,660
(133,118)
322,542
SP
Gross operating revenue
Cost of sales
Gross profit
Selling expenses
Gross profit adjusted for selling expenses
69
1,769,236
(46,307)
1,722,929
(1,197,242)
525,687
(116,986)
408,701
R$
Other
markets
Total
725,914 2,265,806
(16,547)
(59,911)
709,367 2,205,895
(550,787) (1,591,655)
158,580
614,240
(44,458) (177,576)
114,122
436,664
R$
Other
markets
Total
751,795 2,521,031
(15,737)
(62,044)
736,058 2,458,987
(566,406) (1,763,648)
169,652
695,339
(46,406) (163,392)
123,246
531,947
The following is a reconciliation of gross profit from the real estate development operation
adjusted by selling expenses with profit for the years ended December 31, 2014 and 2013:
Consolidated
2014
2013
Gross profit adjusted
Gross margin of services provided to proportionately
consolidated subsidiaries (not eliminated)
Gross profit adjusted by selling expenses
Administrative expenses (include Management compensation)
Finance income (costs)
Other expenses, net
Income tax and social contribution
Profit for the year
485,948
568,557
(49,284)
436,664
(36,610)
531,947
(193,583)
115,576
(35,413)
(49,347)
273,897
(180,374)
47,272
(20,910)
(49,588)
328,347
The amounts reported to the executive committee as total assets are consistent with the
balances recorded in the financial statements. These assets are allocated based on the segment’s
operations.
The assets corresponding to the reported segments are reconciled with the total assets, as
follows:
SP segment
Other markets segment
Corporate
Total assets according to the balance sheet
2014
2013
3,135,583
1,488,731
4,624,314
255,767
4,880,080
3,142,616
1,290,400
4,433,016
371,677
4,804,693
The amounts reported to the executive committee as total liabilities are consistent with the
balances recorded in the financial statements. These liabilities are allocated based on the
segment’s operations.
The liabilities corresponding to the reported segments are reconciled with the total liabilities, as
follows:
2014
SP segment
Other markets segment
Corporate
Total liabilities according to the balance sheet
836,914
726,070
1,562,984
897,601
2,460,585
2013
1,056,461
817,240
1,873,701
615,116
2,488,817
70
32. OTHER INFORMATION
The Provisional Act 627, of November 11, 2013 converted into Law 12,973 of May 14, 2014
and the Instruction of the Federal Revenue of Brazil 1,397, of September 16, 2013, brought
significant changes to the federal tax rules. This Provisional Act will be effective beginning
2015, and early adoption is permitted beginning 2014.
As early adoption of Law n. 12,973, the Company's management believes that there are still
uncertainties about the impacts of the devices of Law and await guidance from the IRS to be
disclosed in coming weeks. Among other issues, Law 12,973, Article 72, established the tax
neutrality for the payment of dividends based on the results reported between January 1 and
December 31, 2013 and prior years, reinforcing the decision to adopt only from the calendar
year 2015.
33. NON-CASH TRANSACTION
During the period ended December 30, 2014 as described in Note 18.2, the Company granted
common shares to its employees in the amount of R $ 18,124 related to Plan Long Term
Incentive - ILP, which did not affect its cash flow
34. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved by the Board and Directors authorized for issue on
March 6, 2015.
71
Even posts record receivables from clients of R$2.5 billion,
with cash generation of R$98.5 million in 2014
São Paulo, March 10, 2015 – Even Construtora e Incorporadora S.A. – EVEN (BM&FBOVESPA: EVEN3), with
operations in São Paulo, Rio de Janeiro, Rio Grande do Sul and Minas Gerais and focus on residential developments
with unit value above R$250,000 announces its results of the fourth quarter of 2014 (4Q14). Except where stated
otherwise, the consolidated financial and operating information herein is presented in Brazilian real (R$).
IR CONTACT
Dany Muszkat
CFO and IRO
Ivan Bonfanti
IR Manager
Fernanda Brienza
IR Analyst
Tel.:+55 (11) 3377-3777
[email protected]
www.even.com.br/ri
Stock price
Closing date: March 9, 2015
Price per share: R$4.50
HIGHLIGHTS

Net income of R$252 million in 2014;

36 projects delivered in 2014 with PSV of R$2.3 billion,
Even’s share (considering sales price at the time of launch);

Cash generation of R$98.5 million (ex-dividends and share
buyback) in 2014.

Gross margin (ex-financing) stood at 34.6% in 2014,
1.2 p.p. up on 2013;

Accounts receivable from clients totaled R$2.5 billion in 2014;

We reached 100% of the share buyback program initiated in
February 2014, after the acquisition of 5.1 million shares in
4Q14 and 409,100 shares in early 1Q15.
Number of shares:
233,293,408
Number of shares
(ex-treasury):
225,183,120 (Dec 31, 2014)
224,774,177 (Mar 10, 2015)
Market Cap:
R$1,011.5 million (on Mar 9, 2015)
(Excludes shares held in treasury)
CONFERENCE CALL - RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2014
Date: March 11, 2015
Portuguese
11:00 a.m. (Brasília time)
10:00 a.m. (New York time)
02:00 p.m. (London time)
Dial-in: +55 (11) 3728-5971 or (11) 3127-4971
Replay: +55 (11) 3127-4999
Code: 20861648
English (simultaneous interpreting)
11:00 a.m. (Brasília time)
10:00 a.m. (New York time)
02:00 p.m. (London time)
Dial-in: +1 516 3001066 (Code: Even)
Replay: +55 (11) 3127-4999
Code: 17825967
The information, figures and data included in this performance report that do not correspond to the accounting balances
and the information contained in the Quarterly Information, such as: Potential Sales Value (PSV), Total Sales, Even’s
Sales, Usable Area, Units, Inventories at Market Value, Launches, Expected Delivery Year, Backlog Gross Margin and
other items, were not revised by the independent auditors. Except when stated otherwise, all comparisons in this
quarterly report refer to the fourth quarter of 2014 (4Q14).
CONTENTS
Message from Management ........................................................................................................................... 3
Main Indicators ................................................................................................................................................ 4
Operating Performance ................................................................................................................................... 5
Launches ................................................................................................................................................. 5
Sales ........................................................................................................................................................ 6
Even Vendas ........................................................................................................................................... 7
Inventory .................................................................................................................................................. 8
Land Bank ............................................................................................................................................... 9
Commitment by land acquisition ........................................................................................................... 11
Delivery and execution of projects ........................................................................................................ 12
Credit for production .............................................................................................................................. 13
Transfer operations ............................................................................................................................... 13
Cancellations and default ...................................................................................................................... 14
Financial Performance .................................................................................................................................. 15
Revenue ................................................................................................................................................ 15
Gross Profit and Gross Margin .............................................................................................................. 16
Selling, General and Administrative Expenses (SG&A) ........................................................................ 17
Financial Result ..................................................................................................................................... 18
Operating Income .................................................................................................................................. 18
EBITDA .................................................................................................................................................. 19
Net Income and Net Margin .................................................................................................................. 19
Financial Structure................................................................................................................................. 20
Cash Generation / Cash Burn ............................................................................................................... 21
Accounts receivable from clients ........................................................................................................... 22
Ownership Structure .............................................................................................................................. 22
Other Information .......................................................................................................................................... 23
Acknowledgements ............................................................................................................................... 23
Sustainability ......................................................................................................................................... 23
Subsequent Events ............................................................................................................................... 23
Exhibits ........................................................................................................................................................... 24
Exhibit 1 – Income Statement ............................................................................................................... 24
Exhibit 2 – Balance Sheet ..................................................................................................................... 25
Exhibit 3 – Statement of Cash Flow ...................................................................................................... 26
Exhibit 4 – Net Assets ........................................................................................................................... 27
Exhibit 5 – Land Bank ........................................................................................................................... 28
Exhibit 6 – Evolution of sales and percentage of completion of costs .................................................. 29
About Even ..................................................................................................................................................... 33
Disclaimer ....................................................................................................................................................... 33
Page 2 of 33
MESSAGE FROM MANAGEMENT
1
2014 was an atypical year. In addition to the expected seasonality of the real estate market, there were two
important events in Brazil (World Cup and presidential elections) which affected our launch calendar and led
us to concentrate most of our launches in the fourth quarter, when we launched R$1.0 billion, divided into 7
different projects or phases, across the 3 states where we operate — São Paulo, Rio de Janeiro and Rio
Grande do Sul. The sales of these products launched in the fourth quarter had a good performance, with
35% of the PSV commercialized in the period.
In 2014, we delivered 36 projects, totaling PSV of R$2.3 billion, which, combined with the transfer process’
good pace, enabled us to attain receivables of R$2.5 billion. Both the volume delivered and received are the
highest in the Company’s history. As a result, cash generation was positive by R$98.5 million (ex-dividends
and buyback). With part of this cash generation, the Company reached 100% of its share buyback program
implemented in February 2014, which had a term of one year. In 2014, the amount paid as share buyback
program and dividends totaled R$129 million.
Even began 2015 with inventory totaling R$3.0 billion. Being aware that such inventory is very “young”—with
only 10% of completed units and most of it (75%) to be delivered as of 2016— we set inventory sales as our
priority for 2015.
Consequently, 2015 launches will be concentrated in the second half, allowing our sales team to focus on
inventory sales in the first half of the year, as well as providing us with a better position to evaluate the
strategy of launches in 2015. Based on the performance of sales of products in inventory and the constant
evaluation of market conditions, we will prioritize products that we deem as resilient, in view of oscillations in
the economic scenario. We would like to point out that 74% of our land bank is composed of projects with
unit value below R$750,000 in São Paulo and Rio de Janeiro and R$650,000 in Rio Grande do Sul, i.e. we
believe our land bank has resilient products located in areas with structural demand.
We raised by R$200 million the projection for our volume of deliveries in 2015, from R$1.7 billion to R$1.9
billion after revising the progress of construction sites, which underpins Even’s operational efficiency and
high control levels.
Additionally to the Company’s robust cash position of R$721 million, we ended 2014 with a comfortable
leverage ratio (net debt/shareholders’ equity) of 47.5%, and receivables from completed units totaling R$609
million.
We would like to point out that the Company’s sustainability practices are not only helpful in the sense that
they minimize environmental impacts, but they also generate financial gains. For example, all projects that
obtain the Selo Casa Azul, which is a social and environmental classification of housing projects financed by
Caixa Econômica Federal, are eligible for a reduction in financing to production costs.
We continue to follow closely the next steps taken by Brazil’s economy and real estate market. We did
adjustments to our structure both at the end of 2014 and at the beginning of 2015, and will also prioritize the
sale of inventory, concentrating most launches in the second half. Furthermore, we are planning to reduce
land acquisition and the volume of launches, which should contribute to increasing the Company’s cash
generation. In parallel, the expected volume of deliveries, combined with a good pace of transfer operations,
will keep our receivables at an adequate level, aiming to maintain the Company’s healthy financial position.
We will not give up our financial discipline; rather, we will hold on to the solidity that has always accompanied
us.
¹ This document may contain certain forward-looking statements and information relating to Even that reflect the current views and/or expectations of the
Company and its management with respect to its performance, business and future events. Any statements predicting, forecasting, indicating or implying
future results, performance or achievements, or containing words like “believe,” “expect,” “estimate,” or any other words with similar meaning, must not be
construed as guidance. Such statements are subject to risks, uncertainties and future events..
Page 3 of 33
MAIN INDICATORS
Consolidated Financial Data
4Q13
Net revenue
Gross profit
Adjusted gross margin1
Adjusted EBITDA
Adjusted EBITDA margin
Adjusted net income
Net margin before minority interest
Earnings per share (ex-treasury)
ROE
ROE (last 12 months)
700,066
199,507
34.1%
140,114
20.0%
86,551
13.6%
0.37
12.4%
15.1%
475,489
129,556
35.3%
81,747
17.2%
53,813
11.5%
0.23
11.3%
14.9%
573,665
146,059
31.7%
86,876
15.1%
48,669
9.7%
0.21
8.5%
12.9%
551,662
176,794
38.5%
112,989
20.5%
82,408
17.4%
0.36
15.7%
13.2%
605,079
161,831
33.4%
96,617
16.0%
67,522
11.1%
0.29
12.7%
12.3%
10%
-8%
-5.1 p.p.
-14%
-4.5 p.p.
-19%
-6.3 p.p.
-18%
-3.0 p.p.
-0.9 p.p.
2,458,987
695,339
33.5%
472,747
19.2%
282,886
13.4%
1.21
17.5%
15.1%
2,205,895
614,240
34.6%
378,233
17.1%
252,412
12.4%
1.12
12.7%
12.3%
-10%
-12%
1.2 p.p.
-20%
-2.1 p.p.
-11%
-0.9 p.p.
-8%
-4.8 p.p.
-2.8 p.p.
Revenue to be recognized2
Unearned income2
Unearned income margin2
2,317,765
813,089
35.1%
2,241,584
786,812
35.1%
2,221,357
773,885
34.8%
2,066,274
736,888
35.7%
2,070,627
744,639
36.0%
0.2%
1%
0.3 p.p.
2,317,765
813,089
35.1%
2,070,627
744,639
36.0%
-11%
-8%
0.9 p.p.
Net debt3
Net debt3 (excluding SFH)
Shareholders’ equity
Net debt³ / Shareholders’ equity
Total assets
1,118,020
(5,155)
2,315,876
48.3%
4,804,694
1,100,850
7,005
2,330,501
47.2%
4,694,424
1,167,594
178,111
2,352,000
49.6%
4,765,652
1,196,649
227,406
2,413,063
49.6%
4,843,260
1,149,006
244,735
2,419,495
47.5%
4,880,080
-4%
8%
0.3%
-2.1 p.p.
1%
1,118,020
(5,155)
2,315,876
48.3%
4,804,694
1,149,006
244,735
2,419,495
47.5%
4,880,080
3%
-4848%
4%
-0.8 p.p.
2%
29,973
(38,673)
(7,874)
20,165
(72,149)
128%
(3,748)
(98,530)
2529%
Cash Burn4 (for the period)
Launches
Launched projects
Potential launch PSV5 (100%)
Potential launch PSV5 (% Even)
Number of units launched
Usable area of launched units (m²)
Average launch price (R$/m²)
Average price of launched units
(R$/unit)
4Q13
1Q14
1Q14
2Q14
2Q14
3Q14
3Q14
4Q14
4Q14
Chg. (%)
Chg. (%)
2013
2013
2014
2014
Chg. (%)
Chg. (%)
13
1,698,693
1,231,520
2,179
184,444
10,701
2
190,085
190,085
233
11,503
17,072
8
703,930
586,163
1,434
107,060
6,886
3
293,357
289,026
363
33,471
10,873
7
1,037,924
1,014,184
1,805
128,559
10,216
133%
254%
251%
397%
284%
22%
27
2,930,526
2,422,901
5,004
355,230
9,565
20
2,225,306
2,079,465
3,835
280,593
9,303
-26%
-24%
-14%
-23%
-21%
-3%
780
816
491
808
575
-29%
586
580
-1%
Sales
4Q13
Contracted sales6 (100%)
Contracted sales6 (% Even)
Number of units sold
Usable area of units sold (m²)
Average sales price (R$/m²)
Average price of unit sold (R$/unit)
Consolidated VSO (% Even)
Launch VSO (% Even)
947,587
721,159
1,583
115,742
7,972
599
22.7%
39.3%
378,199
340,698
786
38,167
10,182
481
13.0%
31.3%
482,448
377,589
1,125
77,173
8,849
429
13.0%
21.5%
328,909
270,226
550
49,058
12,994
598
9.7%
8.7%
536,194
507,767
1,168
75,027
7,523
459
14.4%
36.3%
63%
88%
112%
53%
-42%
-23%
4.7 p.p.
27.6 p.p.
2,439,992
2,118,495
4,888
309,583
8,070
499
47.2%
48.1%
1,725,749
1,496,280
3,629
239,426
7,587
476
33.1%
27.8%
-29%
-29%
-26%
-23%
-6%
-5%
-14.1 p.p.
-20.3 p.p.
12.2%
11.5%
10.8%
9.8%
5.6%
-4.2 p.p.
46.2%
37.6%
-8.5 p.p.
VSO of remainder (% Even)
1Q14
556,429
397,787
7
590,071
582,033
7
6%
46%
0%
2,185,987
1,431,254
31
2,758,443
2,260,574
36
26%
58%
16%
1,234
927
3,491
1,021
1,618
37%
6,673
7,057
6%
4Q14
Chg. (%)
2013
2014
Chg. (%)
1,223,597
913,395
16
3Q14
2013
2014
388,346
367,358
6
2Q14
Chg. (%)
2013
476,482
332,684
7
1Q14
4Q14
Chg. (%)
4Q13
4Q13
3Q14
4Q14
Delivered PSV7 (100%)
Delivered PSV7 (% Even)
Number of projects delivered
Land
2Q14
3Q14
Deliveries
Number of units delivered
1Q14
2Q14
2014
Chg. (%)
Chg. (%)
Land Bank (100%)
5,023,672
5,947,167
6,698,400
7,139,091
6,774,257
-5%
5,023,672
6,774,257
35%
Land Bank (% Even)
4,584,633
5,508,129
6,208,292
6,494,293
6,105,485
-6%
4,584,633
6,105,485
33%
1
Excluding only the effects of the financial charges recognized under costs (corporate debt and financing for lot acquisitions and production).
Includes deduction of the effective rate of PIS and COFINS tax for each project in the respective periods, and excludes effects from adjustment to present
value.
3
Divergent from Note 28.2 due to exclusion of “Assignment of Receivables”, therefore consisting of the sum of liabilities related to loans, financings and
debentures, net of cash and cash equivalents and pledged amounts.
4
Cash burn subtracted from dividends and repurchase of shares.
5
PSV: “Potential Sales Value”, i.e. result or potential result from the sale of all units of a real estate development, based on the list price at time of launch.
6
Value of the contracts signed with clients involving sales of finished units or units for future delivery from a specific project (net of sales commissions).
7
Amount considering sales price at the time of launch.
2
Page 4 of 33
OPERATING PERFORMANCE
LAUNCHES
The following table lists launches in 2014 by quarter:
Project
Region
1st quarter
Total PSV
(R$ ‘000)
Even’s PSV
(R$ ‘000)
Usable area
(m2)
Unit
Average unit
value (R$ ‘000)
Segment
190,085
190,085
11,503
233
816
Assembleia One
RJ
125,964
125,964
6,172
169
745
Office
SP Sumaré Perdizes
SP
64,121
64,121
5,331
64
1,002
Upper-middle
703,930
586,163
107,060
1,434
491
nd
2
quarter
Quintas da Lapa
SP
193,866
96,933
25,137
188
1,031
Upper-middle
Clube Jardim Vila Maria
SP
149,110
149,110
21,062
399
374
Emerging
Parque Jardim Vila Guilherme
SP
79,988
79,988
12,006
204
392
Emerging
Mariz Vila Mariana
SP
75,881
75,881
8,840
78
973
Upper-middle
Vila Jardim Casa Verde
SP
56,565
56,566
8,728
138
410
nd
Story Jaguaré (2 phase)
rd
Icon RS (3 phase)
th
Vida Viva Clube Canoas (4 phase)
SP
44,348
44,348
6,779
115
386
RS
45,530
36,424
7,631
112
407
RS
58,641
46,913
16,876
200
293
Emerging
rd
3 quarter
Vernissage Pinheiros
Bio Tatuapé
nd
Vida Viva Clube Centro (2 phase)
Emerging
Affordable
housing
Emerging
293,367
289,034
33,471
363
808
SP
161,418
161,418
12,472
100
1,614
High
SP
110,283
110,283
14,291
191
577
Upper-middle
RS
21,666
17,333
6,708
72
301
Emerging
th
4 quarter
1,037,924
1,014,184
128,559
1,805
575
RJ
194,736
194,736
36,121
568
343
Emerging
RG Personal Residences (2 phase)
RJ
63,108
63,108
8,442
96
657
Emerging
Portal Centro
SP
153,481
153,481
22,538
399
385
Emerging
Martese Alto da Lapa
SP
299,310
299,310
31,162
192
1,559
High
Hotel Ibis
SP
208,587
208,587
7,451
369
565
Hotel
Ato
RS
63,296
50,636
9,945
22
2,877
High
Vida Viva Boulevard
RS
55,407
44,326
12,900
159
348
Emerging
2,225,306
2,079,465
280,593
3,835
580
Up Barra
nd
Total in 2014
Launches (R$ million)
Launches in the year (R$ million)
2,423
1,232
2,079
1,014
586
289
190
4Q13
1Q14
2Q14
3Q14
4Q14
2013
2014
Seven projects were launched in the fourth quarter, totaling PSV of R$ 1,014.2 million (Even’s share), with
average PSV per project of R$ 148.3 million.
Page 5 of 33
In 2014, we launched 15 developments and 5 phases, totaling launched PSV of R$ 2,079.5 million (Even’s
share), with an average PSV of R$ 111.3 million per development, in three of the four regions where we
operate (São Paulo, Rio de Janeiro and Porto Alegre).
As shown in the table above, 12 (or 72% of launched PSV) of the 20 launches in the year were in São Paulo
and 17 (or 83% of launched PSV) of the 20 launches are in the emerging, upper-middle and high segments.
Future launches will mostly depend on market demand and inventory sales performance. The company
continues to believe in its strategy of (i) products focused on the final user, (ii) working in the country’s most
resilient areas, as well as (iii) maintaining a varied product portfolio in our land bank. No project will be
launched in the first quarter of 2015.
SALES
Contracted sales totaled R$ 536.2 million in 4Q14 (R$ 507.8 million, Even’s share).
The sales-over-supply ratio (VSO) of 4Q14 launches was 36.3%, while VSO of the remaining units
(inventory) came to 5.6%. Fourth-quarter sales-over-supply ratio (VSO) was 14.4%.
In the fourth quarter, VSO of the remaining units was negatively impacted primarily by the brokers’ focus on
selling the period launches. It is worth noting that, historically, Even Vendas corresponds to around 60% of
the sales of remaining units.
Inventory Sales
Inventory SOS
1.60 0
Launch Sales
Launch SOS
Sales (R$ million)
Quarterly SOS
39%
36%
31%
1.40 0
23%
13%
40%
22%
13%
14%
10%
20%
Sales in the year (R$ million)
1.20 0
10%
12%
12%
11%
800
2,118
9%
1.00 0
0%
6%
721
1,496
-20%
508
600
-40%
483
400
341
59
378
270
25
126
368
-60%
200
238
281
4Q13
1Q14
251
245
2Q14
3Q14
140
-
-80%
4Q14
2013
2014
The following table gives a breakdown of sales by product launch year:
Year of launch
Total sales
(R$ ‘000)
4Q14
2014
Even Sales
(R$ ‘000)
4Q14
2014
Usable area
(m2)
4Q14
2014
Units
4Q14
2014
536
Up to 2011
59,879
363,530
57,064
265,449
(463)
33,562
132
2012
31,247
219,952
26,178
190,896
5,286
31,180
66
444
2013
16,251
377,313
14,929
339,742
3,774
55,074
33
1,055
2014
428,817
764,954
409,596
700,193
66,431
119,609
937
1,594
Total
536,194
1,725,749
507,767
1,496,280
75,027
239,425
1,168
3,629
Page 6 of 33
The table below shows a breakdown of sales by launch segment:
Total sales
(R$ ‘000)
Segment
4Q14
Affordable housing
Even Sales
(R$ ‘000)
2014
4Q14
Usable area
(m2)
2014
4Q14
Units
2014
4Q14
2014
25,725
84,774
24,039
79,549
4,255
15,664
76
367
254,009
674,650
242,213
628,172
41,391
112,324
767
2,070
Middle
27,729
203,345
25,279
137,144
(2,561)
6,907
35
191
Upper-middle
43,829
305,073
35,700
228,403
1,110
44,782
61
377
118,212
140,037
117,684
129,539
22,782
25,099
76
82
4,373
82,454
1,805
78,995
1,139
7,123
14
50
(52)
12,172
(26)
6,086
-
19
Hotel
43,042
43,042
43,042
43,042
6,167
6,167
90
90
Lot
(1,047)
6,554
(183)
1,147
(1,158)
6,472
(2)
7
Office
20,374
173,651
18,215
164,203
1,903
14,019
51
376
Total
536,194
1,725,749
507,767
1,496,280
75,027
239,425
1,168
3,629
Emerging
High
Luxury
Mixed use
-
867
Lastly, the following table presents a breakdown of sales by launch region:
Total sales
(R$ ‘000)
Region
4Q14
Usable area
(m2)
4Q14
2014
4Q14
2014
318,389
1,096,471
303,780
953,987
47,989
151,956
560
2,093
Rio de Janeiro
140,546
267,360
141,567
270,689
14,075
22,036
438
656
76,823
366,669
61,668
275,328
12,745
66,480
168
890
436
(4,750)
752
(3,724)
219
(1,047)
2
(10)
536,194
1,725,749
507,767
1,496,280
75,027
239,425
1,168
3,629
Minas Gerais
Total
4Q14
2014
Units
São Paulo
Rio Grande do Sul
2014
Even Sales
(R$ ‘000)
EVEN VENDAS
Even Vendas, Even’s group own broker, plays an essential role in the company’s strategy. Today it has 729
brokers and was responsible for 65% of Even’s total sales in 2014 in the areas where it operates (São Paulo
and Rio de Janeiro), being 57% from launching sales and 69% from the remaining sales.
Below, Even Vendas’ percentage on total accumulated sales (Even’s share) in 2013 and 2014:
Even Vendas (%)
Other Brokers (%)
39
39
37
36
35
61
61
63
64
65
12M13
3M14
6M14
9M14
12M14
Even Vendas currently holds an outstanding position in the real estate sales segment. We won seventh
place in the 2013 Top Imobiliário award for the São Paulo metropolitan region (“Broker" category). The
ranking is organized by Embraesp and Estado de São Paulo newspaper, and was announced in May 2014.
Page 7 of 33
INVENTORY
th
We ended the 4 quarter with an inventory of R$ 3.0 billion in potential sales value (Even’s share),
equivalent to 24.0 months of sales (based on the pace of sales in the last 12 months).
rd
The complete inventory remained at 10%, virtually stable in relation to the 3 quarter of 2014 (from
R$ 260.5 million in 3Q14 to R$ 293.2 million in 4Q14) despite the strong volume of deliveries in the last 12
months (totaling PSV of R$2,260 million, Even’s share, considering sales price at the time of launch).
Estimated year of
completion
Inventory at market
value (R$ ‘000)
% Value
Projects
Units
% Units
Completed units
293,190
10%
79
832
15%
2015
443,758
15%
30
1,041
19%
2016
881,825
29%
28
1,699
31%
2017
1,193,724
40%
20
1,872
34%
2018
183,153
6%
1
119
2%
Total
2,995,651
100%
158
5,563
100%
Note that the inventory delivered spreads across 79 different projects, totaling 832 units.
Below, the percentage of projects sold by the estimated year of completion.
% sold
2015
Estimated
year of
completion
80%
2016
2017
2018
Inventory sales amount (R$ million)
% not sold
444
20%
61%
882
39%
41%
59%
39%
1,194
61%
183
The units for sale indicate a potential gross margin of 33.5%, assuming the total costs of units in inventory
(excluding the deferred costs of units not launched in phased projects totaling R$373.0 million). To calculate
this gross margin, we first deducted PIS and COFINS taxes for each project as well as the average
commission paid to the real estate brokerage firm.
The table below gives a breakdown of the potential sales value of units in inventory by launch year:
Total PSV
(R$ ‘000)
Even’s
PSV
(R$ ‘000)
Projects
Units
% Units
412,187
286,505
78
765
14%
2012
652,443
569,499
33
1,077
19%
2013
1,086,655
907,437
26
1,636
29%
2014
1,293,438
1,232,210
21
2,085
37%
Total
3,444,723
2,995,651
158
5,563
100%
Launch
Until 2011
Page 8 of 33
The table below shows our inventory by region:
Region
São Paulo
Total PSV
Even’s
PSV
(R$ ‘000)
(R$ ‘000)
Projects
Units
Projects
Units
Inventory under
construction
Completed inventory
2,422,096
2,151,552
58
550
44
3,132
Rio de Janeiro
458,815
448,990
9
47
12
928
Rio Grande do Sul
522,058
358,437
6
117
23
671
Minas Gerais
41,754
36,672
6
118
3,444,723
2,995,651
79
832
Total
-
-
79
4,731
LAND BANK
In 4Q14, we acquired 5 new sites representing PSV of R$ 753 million (Even’s share), while in 2014,
acquisitions reached PSV of R$ 3.6 billion (Even’s share), 51% of which in São Paulo (in PSV Even’s share).
PSV of land acquired (Even’s share)
# of lots acquired
SP
RJ
RS
# of lots acquired
12
12
8
9
9
5
1,103
1,249
1
5
894
753
7
525
4Q13
1Q14
2Q14
3Q14
8
1-
4Q14
4Q13
1Q14
2
6
2Q14
5
5
3
1
1
2
1
2
3Q14
4Q14
We ended 4Q14 with a land bank representing PSV of R$ 6.8 billion (R$6.1 billion, Even’s share) spread
across 60 different projects or phases, with average PSV of R$ 112.9 million, in line with our diversification
strategy of not concentrating a large amount of PSV in any single project.
Land bank evolution
Land Bank PSV (Even’s share)
# of lots or phases in the land bank
58
63
6,208
6,494
6,105
2Q14
3Q14
4Q14
60
53
47
4,585
4Q13
5,508
1Q14
In the last few months, due to the review of the master plan for the city of São Paulo, we focused our efforts
in the acquisition of lots in São Paulo to maintain the launches in the city in line with the rules of the previous
master plan.
Page 9 of 33
Therefore, we increased the duration of the land bank. This acquisition effort ensured that the Company will
maintain products with increased construction potential and lower onerous assignment in its portfolio, in
addition to giving it more time to launch products regulated by the new urban standards.
The land bank in São Paulo is approximately equivalent to our launches in the last 21 months.
Even operates under the “High Turn Over” concept in order to minimize the time between lot acquisition and
the respective product launch. Our strategy focuses on the company’s core business and does not involve
speculation in the real estate market. All our feasibility studies take into account the cost of capital (cost of
money over time). We are the market leader in our main operational areas: São Paulo, Rio de Janeiro and
Rio Grande do Sul.
For the purpose of new land acquisitions, we consider selling 45% during the launch period (approximately
six months), 45% during construction, and the remaining 10% within a year of delivery of the project.
The following tables provide a breakdown of our land bank by product segment and location:
Region
# of
launches
Expected PSV (R$ ‘000)
Area (m²)
Units
Lot
Usable
%
Total
Even
São Paulo
22
195,413
354,965
4,895
2,812,685
2,589,817
42%
Rio de Janeiro
16
221,373
306,515
4,518
1,981,089
1,981,089
29%
Rio Grande do Sul
20
924,644
457,762
4,701
1,676,192
1,230,288
25%
Minas Gerais
2
17,739
37,168
386
304,290
304,290
4%
Total
60
1,359,169
1,156,410
6,774,257
6,105,485
Segment
# of
launches
14,500
Expected PSV (R$ ‘000)
Area (m²)
Units
Lot
100%
Usable
%
Total
137
Lot
Affordable Housing
1
5,014
8,644
24,282
24,282
0,4%
Emerging
13
139,335
207,547
3,603
1,290,589
1,286,855
19%
Middle
12
107,968
174,982
3,391
1,612,428
1,505,726
24%
Upper-middle
18
247,898
286,790
3,641
2,442,368
2,213,921
36%
High
4
15,293
35,578
169
304,079
256,661
4%
Luxury
2
6,141
15,243
72
219,099
182,827
3%
Mixed use
6
116,602
86,761
1,635
520,055
346,215
8%
Lot
2
644,565
302,431
1,186
80,153
64,123
1%
Office
2
76,352
38,434
667
281,205
224,875
4%
Total
60
1,359,169
1,156,410
6,774,257
6,105,485
14,500
100%
Page 10 of 33
COMMITMENT BY LAND ACQUISITION
As mentioned in the accounting standards, the lots are booked only when a title deed is obtained, regardless
of the progress of the negotiations.
The position of the land bank (Even’s share) and the balance of net debt from lots (launched and not
launched), based on the lots already acquired as well as the advances made and commitments assumed by
the Company until December 31, 2014:
Lots not launched
On balance
Advances for land acquisition¹
Off balance
36.995
N/A
485.633
N/A
Lots without deed (off balance) ³
N/A
875.930
Total land (at cost)
1.398.558
Land inventory²
1
2
3
Note 6 - lots of projects not launched yet without deed (installment paid is recorded in the accounting books).
Note 6 - lots of projects not launched yet with deed (recorded in the accounting books).
Note 26 (2.2) - lots of projects not launched and off-balance.
Lots not launched
Lots launched
Total land debt
On balance
Land debt
Off balance
On balance
(10,683)¹
(875,930)²
(291,395)
(1.178.008)
Cash
(4,948)
(147,773)
(12,220)³
(164.941)
Financial swap
(5,735)
(161,480)
(102,599)³
(269.813)
(566,678)
4
(743.254)
(291,395)
(1,178,008)
Physical swap
-
Total land debt
(176,577)
(886,613)
1
Note 10 - debt of lots for which the project has not yet been launched and which have a title deed (included under liabilities, which also reflects the debt
from lots whose projects have already been launched).
2
Note 26 (2.2) - lots of projects not launched yet (commitment not reflected in the accounts and complements the amount paid under the item Land Bank).
3
Note 10 - debt of lots for which the project has not yet been launched and which have a title deed.
4
Notes 13 and 26 - physical swap unearned amount.
The chart below shows a low commitment to pay lots in cash, proving the company’s successful capital
allocation.
Debt from Land Plots
Cash
Financial Swap
Physical Swap
R$ 165
million;14%
R$ 743
million; 63%
R$ 270
million; 23%
Note that approximately 45% of the current plot of land’s debt that will be paid in cash will be disbursed only
as of 2016.
Page 11 of 33
DELIVERY AND EXECUTION OF PROJECTS
In recent years, project deliveries strongly increased, fueling the availability of labor/execution capacity to
levels more than sufficient for initiating the new works. This ensures that Even’s current installed capacity
remains compatible with the volume of its operations.
2010
2011
2012
2013
2014
57
72
76
70
61
Active construction sites
Projects delivered
17
21
28
31
36
Units delivered
2,204
2,932
6,425
6,673
7,057
Total PSV of units delivered (R$ million)¹
1,214
1,346
2,270
2,186
2,758
939
1,305
1,876
1,431
2,261
Even’s PSV of units delivered (R$ million)¹
¹ Amount considering sales price at the time of launch.
Project delivery¹
(launch PSV in R$ million)
Even’s PSV of units delivered
Partner’s PSV of units delivered
# of projects
36
28
498
31
394
755
21
41
17
2,261
276
1,876
1,431
1.305
939
2010
2011
2012
2013
2014
¹ Considering sales prices at time of launch.
In 4Q14, we delivered 7 developments comprising 1,618 units, equivalent to a launch PSV of R$ 582 million
(launch PSV, Even’s share). Accordingly, in 2014 we delivered 36 developments, totaling 7,057 units,
equivalent to a launch PSV of R$ 2.3 billion (launch PSV, Even’s share).
The chart below shows the breakdown of deliveries by launch year.
Deliveries by launch year
2%
4%
18%
28%
14%
32%
66%
98%
51%
82%
54%
21%
2010
2011
Delivered
Year
Launched PSV (Even’s share)
2012
2015
2016
20%
10%
2013
2017
2014
After 2017
2010
2011
2012
2013
2014
1,528,026
2,070,453
2,516,821
2,422,902
2,079,465
Page 12 of 33
All projects launched in 2009 have already been delivered, as well as most projects launched in 2010, with
projects from this year having full completion until early 2015.
After revising the construction works schedule, we raised the volume of deliveries expected for 2015 from
R$1.7 billion to R$1.9 billion (Even’s share, considering PSV at the time of launch), which shows the quality
of our operational capacity and controls.
Currently, we execute 100% of our construction projects ourselves. This high degree of vertical integration,
together with our control systems, gives us greater flexibility in controlling the costs of our construction
works. We wish to emphasize that the PoC calculation (recognition of revenue in our financial statements)
takes into account the budgeted cost of our construction, always reviewed on a monthly basis, thus reflecting
the company’s actual performance.
CREDIT FOR PRODUCTION
Our strategy consists of taking out credit for production in all projects. Out of all projects launched and under
construction, only two of them, launched in 2Q14 and 3Q14, still do not have a formalized financing contract.
Our construction financing index remained high. It is worth noting that in these financing contracts
installments have not been disbursed yet because the funds are released as the works progress.
TRANSFER OPERATIONS
The transfer process (bank loans to clients) remained effective. In line with our strategy, we have maintained
a high level of transfers concluded within 90 days (from the issue of the individual registration and
regularization of the documents until the issue of the transfer contracts), as shown below:
Percentage of transfers concluded after delivery
(per number of units eligible for transfer)
30 days
60 days
90 days
On Feb 27, 2015
1Q12
30%
64%
79%
100%
2Q12
17%
33%
84%
100%
3Q12
18%
30%
73%
100%
4Q12
34%
67%
82%
100%
1Q13
19%
67%
81%
100%
2Q13
49%
72%
82%
100%
3Q13
38%
56%
71%
100%
4Q13
57%
73%
87%
100%
1Q14
31%
71%
85%
100%
2Q14
39%
67%
84%
96%
3Q14
38%
73%
87%
99%
4Q14
36%
N/A
N/A
93%
Page 13 of 33
As the following table shows, in 2014 our total receivables from clients (units under construction and
completed) came to R$ 2,465.1 million (R$ 656.1 million in 4Q14), maintaining the operational efficiency of
the collections and, especially, the transfer operations, all of which proves the quality of our portfolio.
Receipt per period (R$ ‘000)
2011
2012
2013
2014
Units under construction
720,750
712,406
1,082,562
849,151
Completed units
869,762
1,241,414
1,304,886
1,615,947
1,590,512
1,953,820
2,387,449
2,465,098
Total
CANCELLATIONS AND DEFAULT
Even does not disclose the ratio between cancellations and gross sales in current quarters, as we believe
cancellations in a given quarter have no relation with sales in the same period and may generate distortions
in the analysis. We understand that cancellations have a direct relation with a number of factors in which the
company has been improving, such as: credit scoring, delivery volume, portfolio and default level monitoring.
For this reason, we always report our sales figures net of cancellations. Even’s policy is to closely monitor
the payment behavior of our clients and quickly solve possible problems in order to maintain a performing
portfolio with a high rate of success in terms of transfer.
We regularly carry out credit analyses of our customers so as to monitor possible default in the portfolio. We
estimate the volume of contracts cancelled each year, which, so far, is in line with our forecasts.
Page 14 of 33
FINANCIAL PERFORMANCE
REVENUE
Gross revenue from sales and services totaled R$621.3 million in 4Q14, while in 2014 gross operating
revenue came to R$2,265.8 million, down R$255.2 million (-10.1%) in relation to 2013.
Gross Revenue (R$ million)
LTM Gross Revenue (R$ million)
719
2,521
621
590
567
2Q14
3Q14
2,266
488
4Q13
1Q14
4Q14
2013
2014
The table below shows the breakdown of revenue from sales of real estate properties:
Recognized Gross Revenue (Development)
Year of launch
4Q13
1Q14
2Q14
3Q14
4Q14
R$ ‘000
%
R$ ‘000
%
R$ ‘000
%
R$ ‘000
%
R$ ‘000
%
Up to 2011
360,722
52%
222,265
46%
253,417
43%
188,380
34%
125,181
21%
2012
142,062
20%
158,935
32%
191,972
33%
233,781
42%
199,839
33%
2013
199,086
28%
73,469
15%
58,144
10%
85,175
15%
112,966
19%
2014
-
-
28,764
7%
74,077
14%
46,049
8%
169,064
29%
Total
701,870
100%
477,433
100%
577,610
100%
553,385
100%
607,050
100%
In 4Q14, taxes levied on services and revenue amounted to R$ 16.2 million. Such taxes (PIS, COFINS and
ISS) corresponded to an average burden of 2.6% on gross operating revenue, a reduction of 0.1 p.p. in
relation to 3Q14.
In 2014, taxes on services and revenue amounted to R$ 59.9 million, corresponding to an average burden of
2.6% on gross operating revenue, which decreased by 0.1 p.p. from 2013.
Net operating revenue after these taxes totaled R$ 605.1 million in 4Q14.
In 2014, net operating revenue came to R$ 2,205.9 million, down R$ 253.1 million (-10.3%) from 2013.
Page 15 of 33
GROSS PROFIT AND GROSS MARGIN
Gross profit came to R$ 161.8 million in 4Q14, while in 2014 gross profit totaled R$ 614.2 million, a decrease
of R$ 81.1 million (-11.7%) in relation to 2013.
Gross Profit (R$ million)
Gross Margin (ex-financing)
38.5%
300
35.3%
34.1%
Gross profit in the year (R$ million)
33.4%
31.7%
LTM Gross Margin (ex-financing)
45, 0%
1.00 0
35, 0%
34.6%
33.5%
40, 0%
250
900
200
30, 0%
25, 0%
177
200
162
146
130
150
695
800
614
700
20, 0%
15, 0%
600
500
10, 0%
5,0 %
400
100
0,0 %
-5,0%
300
200
50
-10,0%
-15,0%
100
-
-25,0%
4Q13
1Q14
2Q14
3Q14
-
4Q14
-20,0%
2013
2014
Fourth-quarter gross margin stood at 33.4%, excluding the effects of financial charges recognized at cost
(corporate debt and credit for production), stable in relation to the same quarter last year.
Note that, historically, the pay rise for construction workers in the state of São Paulo following the collective
bargaining agreement takes place in the second quarter of each year, thus adversely impacting the margin
of the period. Nevertheless, the recomposing of the margin takes place in the third quarter, after the
installments from units already sold are restated according to the INCC.
In 2014, gross margin was 34.6%, excluding the effects of financial charges recognized at cost, up 1.1 p.p.
from 2013.
The table below shows figures since 1Q11 (16 quarters), underlining the company’s strategic and
operational consistency. We highlight the increase in gross margin.
Gross margin (ex-financing) ¹
1Q11
2Q11
3Q11
4Q11
2011
1Q12
2Q12
3Q12
4Q12
2012
1Q13
2Q13
3Q13
4Q13
2013
1Q14
2Q14
3Q14
4Q14
2014
30.5%
30.0%
33.9%
30.0%
31.1%
31.0%
31.2%
31.6%
33.3%
31.8%
32.7%
31.8%
35.5%
34.1%
33.5%
35.3%
31.7%
38.5%
33.4%
34.6%
LTM gross margin (ex-financing) ¹
1Q11
2Q11
3Q11
4Q11
2011
1Q12
2Q12
3Q12
4Q12
2012
1Q13
2Q13
3Q13
4Q13
2013
1Q14
2Q14
3Q14
4Q14
2014
30.8%
30.7%
31.7%
31.1%
31.1%
31.2%
31.5%
31.0%
31.8%
31.8%
32.2%
32.3%
33.3%
33.5%
33.5%
34.0%
34.1%
34.8%
34.6%
34.6%
¹ The 2011 figures are not adjusted to the new accounting practices, thus impacting the LTM margin until 3Q12. As of LTM 4Q12, all figures are adjusted to
the new accounting practices.
Note that Even updates the budgeted cost of projects every month not only based on the variation in the
INCC in the period, but also considering the actual budgeted cost effectively updated by the technical
department. Thus, our budgeted cost reflects the real impact on labor, raw materials and equipment, as well
as possible changes made by the technical department during the course of the project. This systematic
calculation results in lower fluctuation of the margins reported, regardless of market changes and constant
cost pressures in the industry.
Page 16 of 33
The table below presents the (i) booked gross margin, (ii) the backlog margin and (iii) the inventory gross
margin (including the effects of financial charges apportioned to costs).
Fourth quarter of 2014
(R$ million)
Gross
Margin
Net revenue
Backlog
Margin 1
Inventory
Gross Margin 2, 3
605.1
2,070.5
3,361.1
(443.2)
(1,326.0)
(2,341.5)
Construction and lot
(402.9)
(1,326.0)
(2,234.6)
Production financing
(24.2)
-
(24.1)
Corporate debt
(16.1)
-
(82.8)
161.8
744.6
1,019.5
Gross margin (%)
26.7%
36.0%
30.3%
Gross margin (%) excluding financing
(production and corporate)
33.4%
36.0%
33.5%
Cost of goods sold
Gross profit
¹ When realized, backlog and inventory margins will benefit from service revenue and the indexation of the portfolio to the INCC.
² Excluding the cost of not launched units of phased projects amounting to R$373.0 million.
³ Costs incurred and to be incurred.
The table below shows annual total costs to be incurred from projects executed in phases, including units
sold and units in inventory.
Costs to be incurred
Year
Units sold
Inventory units
Total ¹
(R$ million)
(R$ million)
(R$ million)
2015
746.9
496.7
1,243.6
2016
432.4
544.2
976.6
2017
141.6
204.1
345.7
2018
5.1
7.9
13.1
Total
1,326.0
1,252.9
2,578.9
¹ Including the total cost in phased projects (R$ 373.0 million).
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (SG&A)
Fourth-quarter selling, general and administrative expenses (SG&A) totaled R$ 109.6 million, an increase of
R$ 3.7 million (+3.5%) in relation to the previous quarter. In 2014, SG&A came to R$ 406.1 million, up
R$39.5 million (+10.8%) from the R$ 366.6 million recorded in 2013.
4Q13
1Q14
2Q14
3Q14
4Q14
Selling expenses
58,410
38,293
42,586
42,281
54,416
General and administrative
45,793
43,733
48,573
51,050
42,840
1,888
1,984
1,790
1,821
1,792
Management fees
Other operating (income) expenses
Operating expenses
% of net revenue
3,235
5,853
7,815
10,760
10,534
109,326
89,863
100,764
105,912
109,582
15.6%
18.9%
17.6%
19.2%
18.1%
Selling expenses
Selling expenses came to R$ 54.4 million in 4Q14, higher than in previous quarter due to the volume of new
launches in the period.
Page 17 of 33
In 2014, selling expenses totaled R$ 177.6 million, an increase of 8.7% in relation to 2013, primarily due to
(i) the call center, given the higher volume of active clients and (ii) building and asset management costs,
due to higher delivery volume and resulting increase in complete inventory.
In 4Q14, there was a reduction in (i) provision for bonus, (ii) recognition of the Long-term Incentive Plan
(“ILP”), and (iii) expenses with wages.
In 2014, general and administrative expenses totaled R$ 186.2 million, 7.7% higher than in 2013, due to the
ILP granted in April 2014 and the inflation.
The new Long-term Incentive Plan implemented in 2014 enables strong alignment between the company’s
top management and shareholders, since it envisages an incentive (matching) for senior executives to opt
for converting part of their variable short-term compensation (bonus) into long term compensation (shares).
Consequently, in 2014, around 75% of these executives’ variable compensation, which accounts for nearly
80% of the total compensation, is based on shares with vesting from 2 to 4 years.
Other operating (income) expenses
Provision for contingencies (of clients, labor-related, and of contractors) increased in 2014, primarily due to
the last deliveries in Minas Gerais, and the record volume of deliveries of projects.
FINANCIAL RESULT
In 2014, financial result was positive by R$ 115.6 million, versus the positive financial result in 2013 of
R$ 47.3 million (up R$ 68.3 million or +144.5%).
This increase is explained by the 75.2% upturn in financial revenue, fueled by the higher volume of
receivables from completed units, which are paid directly to Even (in the period when the client has not yet
transferred the mortgage to the bank) and adjusted by inflation +12% p.a.
The increased receivables from completed units reflect the high volume of deliveries in recent quarters.
OPERATING INCOME
In 2014, operating income totaled R$ 323.2 million, down R$ 54.7 million (-14.5%) in relation to 2013. This
reduction was mainly due to the lower volume of launches and slower pace of sales with an impact on
revenue recognition.
Operating Income (R$ million)
110
LTM Operating Income (R$ million)
378
108
323
81
65
4Q13
1Q14
69
2Q14
3Q14
4Q14
2013
2014
Page 18 of 33
EBITDA
Below, the EBITDA evolution:
EBITDA (R$ million)
200
19,3%
17,2%
180
EBITDA Margin
20,5%
15,1%
LTM EBITDA (R$ million)
LTM EBITDA Margin
30, 0%
16,0%
19,2%
20, 0%
17,1%
600
160
20, 0%
135
10, 0%
140
500
113
473
10, 0%
0,0 %
378
120
82
100
97
87
400
-10,0%
0,0 %
300
80
-20,0%
-10,0%
60
200
-30,0%
40
-20,0%
100
-40,0%
20
-
-50,0%
4Q13
1Q14
2Q14
3Q14
-
4Q14
-30,0%
2013
2014
The lower revenue in the year and higher financial result directly impacted the EBITDA, causing less dilution
of SG&A.
Below, the calculation of our EBITDA in recent quarters and in 2013 and 2014:
EBITDA reconciliation ¹
4Q13
1Q14
2Q14
3Q14
4Q14
Chg. (%)
2013
2014
Chg. (%)
Earnings before income taxes
and social contribution
109,926
64,570
69,330
108,481
80,863
-25.5%
377,935
323,244
-14.5%
(+) Financial result
(19,571)
(25,332)
(24,033)
(37,599)
(28,612)
-23.9%
(47,272)
(115,576)
144.5%
(+) Depreciation and amortization
5,649
4,410
5,616
6,621
4,016
-39.3%
13,966
20,663
48.0%
(+) Expenses apportioned to cost
39,451
38,099
35,963
35,490
40,350
13.7%
128,118
149,902
17.0%
135,455
81,747
86,876
112,993
96,617
-14.5%
472,747
378,233
-20.0%
19.3%
17.2%
15.1%
20.5%
16.0%
-4.5 p.p.
19.2%
17.1%
-2.1 p.p.
472,747
466,269
418,966
417,071
378,233
-9.3%
472,747
378,233
-20,0%
19.2%
19.0%
18.1%
18.1%
17.1%
-1.0 p.p.
19.2%
17.1%
-2.1 p.p.
EBITDA
EBITDA margin (%)
LTM EBITDA
LTM EBITDA margin (%)
¹ EBITDA: earnings before taxes, interest, financial charges recognized to cost, depreciation and amortization.
NET INCOME AND NET MARGIN
In 2014, net income totaled R$ 252.4 million, a reduction of R$ 30.5 million in relation to 2013, with a net
margin of 12.4% (before minority interest), down 0.9 p.p. in relation to 2013.
Net Income (R$ million)
120
13.6%
Net Margin*
LTM Net Income (R$ million)
17.4%
LTM Net Margin*
20, 0%
11.5%
11.1%
9.7%
450
20, 0%
13.4%
400
100
15, 0%
10, 0%
87
82
350
10, 0%
68
80
54
60
12.4%
283
0,0 %
300
252
5,0 %
250
49
-10,0%
0,0 %
200
-5,0%
40
-20,0%
150
-10,0%
100
20
-30,0%
-15,0%
50
-
-40,0%
4Q13
1Q14
2Q14
3Q14
4Q14
-
-20,0%
2013
2014
* Net Margin: based on net income before minority interest.
Page 19 of 33
Net income stood at R$ 67.5 million in 4Q14, a decrease of R$ 14.9 million over 3Q14, reaching a net
margin of 11.1% (before minority interest), down 6.3 p.p. in relation to the previous quarter.
Due to the long cycle of the operation, we believe that any analysis of the company’s performance based on
margins extracted from the financial statements (gross, EBITDA and net margins) must consider a period
longer than just one quarter.
Net margin¹
1Q11
2Q11²
3Q11²
4Q11
2011
1Q12
2Q12
3Q12
4Q12
2012
1Q13
2Q13
3Q13
4Q13
2013
1Q14
2Q14
3Q14
4Q14
2014
14.2%
13.1%
13.1%
9.1%
12.2%
11.1%
8.7%
12.4%
17.1%
12.5%
12.4%
12.8%
14.5%
13.6%
13.4%
11.5%
9.7%
17.4%
11.1%
12.4%
The following table shows the net margins for the 12 months before each quarter, confirming low volatility:
LTM Net margin¹
1Q11²
2Q11²
3Q11²
4Q11
2011
1Q12
2Q12
3Q12
4Q12
2012
1Q13
2Q13
3Q13
4Q13
2013
1Q14
2Q14
3Q14
4Q14
2014
13.5%
13.4%
13.0%
12.2%
12.2%
11.5%
10.5%
10.4%
12.5%
12.5%
12.8%
13.7%
14.2%
13.4%
13.4%
13.2%
12.4%
13.1%
12.4%
12.4%
¹ Net Margin: based on net income before minority interest.
² The 2011 figures are not adjusted to the new accounting practices, thus impacting the LTM margin until 3Q12. As of LTM 4Q12, all figures are adjusted to
the new accounting practices.
FINANCIAL STRUCTURE
On December 31, 2014, cash and cash equivalents totaled R$ 721.3 million, 5.8% below the figure recorded
on December 31, 2013.
Loans, financings and debentures totaled R$ 1,870.3 million (remaining stable over the R$ 1,883.6 million on
December 31, 2013), of which R$ 904.3 million referred to production financing debt (Housing Finance
System - SFH), which is fully guaranteed by the project’s own receivables, and the remainder
R$ 966.0 million corresponded to land, debenture, CRI debts and swap.
The table below shows our capital structure, leverage and receivables from completed units on
December 31, 2014:
December 31, 2014
(R$ million)
Financing to production
904.3
48%
Land (CCB)
228.3
12%
Debentures
305.4
16%
CRI
381.2
20%
Swap (CCB)
51.1
3%
Gross debt
1,870.3
Cash
(721.3)
Net debt
1,149.0
Shareholders’ equity
2,422.8
Net debt /Shareholders’
equity
61% of production and
land financing
100%
47.4%
Receivables from completed units on December 31, 2014
(R$ million)
608.7
Page 20 of 33
The table below shows some leveraging indicators, as well as characteristics of our financings:
Indicators
Total Debt
Average cost
-
Duration
SFH debt¹
Corporate debt
TR + 9.39% p.a.
1.5 year
112.4% CDI
1.1 year
1.8 year
¹ Considers the total outstanding balance (100%) of each SPE, even if Even’s actual percentage in each project.
Amortization of Debentures’ Principal, CRI, Bank Credit Certificates (CCB) and Swap (R$ million)
Debentures
CRI
CCB (land)
Swap
65
33
120
104
1Q
75
2Q
3Q
50
42
4Q
1Q
150
50
2Q
2015
Year
% of total
% accrued
50
3Q
33
4Q
1Q
2Q
2016
2015
25%
25%
3Q
65
50
33
4Q
1Q
2Q
2017
2016
32%
57%
3Q
4Q
2018
2017
32%
89%
2018
11%
100%
CASH GENERATION / CASH BURN
Cash generation in 4Q14, excluding dividends and share buyback, was R$ 72.1 million. In 2014, cash
generation, excluding dividends and share buyback, was R$ 98.5 million, as shown below:
Cash burn (R$ million)
1Q14
2Q14
3Q14
4Q14
2014
Initial net debt
1,118.0
1,100.9
1,167.6
1,196.6
1,118.0
Final net debt
1,100.9
1,167.6
1,196.6
1,149.0
1,149.0
(17.2)
66.7
29.0
(47.6)
31.0
-
(67.2)
-
-
(67.2)
Share buyback
(21.5)
(7.4)
(8.9)
(24.5)
(62.3)
Cash Burn (ex-dividends and buyback)
(38.7)
(7.9)
20.2
(72.1)
(98.5)
Cash burn
Dividends
We would like to highlight that our net debt and leverage ratio (47.4% net debt/shareholders’ equity) were
maintained despite the acquisition of land totaling PSV of R$3.6 billion (Even’s share). Our financial solidity
is supported by the good level of receivables from clients, combined with the excellent pace of transfer
operations (even in a year with record volume of deliveries).
Page 21 of 33
ACCOUNTS RECEIVABLE FROM CLIENTS
We closed 4Q14 with R$ 608.7 million of receivables from completed units. These amounts are mostly under
process of being transferred to the banks (consumer financing).
The balance of accounts receivable is adjusted by the INCC variation until the delivery of keys and,
subsequently, by the price index variation (IPCA or IGPM), plus annual interest rate of 12%, recognized on a
pro rata temporis basis. The balance of accounts receivable is net of swaps.
Unearned accounts receivable decreased from R$ 2.3 billion on December 31, 2013 to R$ 2.0 billion on
December 31, 2014 (-11.5%). The balance of accounts receivable from units sold and not yet completed is
fully reflected as assets in the financial statements, since the balance is recognized as construction
develops.
According to the schedule below, out of total receivables of R$ 4,177.9 million (earned accounts receivable +
unearned accounts receivable in the balance sheet), R$ 484.7 million will be received during construction
period, i.e., receivables from unfinished units and the amount of R$ 3,693.2 million would have the following
receivable schedule, considering the assumption of full receipt within 120 days as of the projects’ delivery
date:
Earned and unearned accounts receivable
Receivables expected
Total accounts receivable
(R$ million)
During construction
After construction
Year
(R$ million)
(R$ million)
2015
292.5
1,570.9
1,863.4
2016
147.6
1,051.8
1,199.4
2017
43.5
753.2
796.7
2018
1.1
317.3
318.5
Total
484.7
3,693.2
4,177.9
It is worth noting that these amounts may be settled by client, transferred to the banks (consumer financing)
or securitized.
OWNERSHIP STRUCTURE
Ownership Structure
(on December 31, 2014)
Board of Directors and Executive Board
Treasury
Free Float
8.8%
3.5%
87.8%
(Total shares: 233,293,408)
Page 22 of 33
OTHER INFORMATION
ACKNOWLEDGEMENTS
In the end of 2014, the BC Bela Cintra development was recognized with the Casa Azul Gold Seal granted
st
by Caixa Econômica Federal, being the 1 development in the São Paulo metropolitan region outside the
Minha Casa Minha Vida housing program to be certified in this category.
In addition to attesting that Even’s practices contribute to minimize environmental impacts, the seal also
includes the benefit of reducing costs with production financing. As a result, all Even’s works with Caixa
Econômica Federal financing will be presented to the institution to receive the seal.
Beyond that along 2014, we received several awards from independent institutions, including:
•
•
•
•
•
•
•
•
2014 ADVB Top Sustentabilidade Award: Even was elected one of the best companies.
Marketing Best Sustentabilidade: Even stood out with the “Guia 101 Lugares para se conhecer”
project.
Melhores da Dinheiro (IstoÉ Dinheiro): Even was elected the champion in the Real Estate
st
Construction sector (publicly-held company); 1 place according to indicators of Human Resources and
Social Responsibility.
st
st
Época Negócios 360º: 1 place in innovation (in the construction segment); 81 place among the 500
largest of 2013.
th
ITC Net Award: 8 place among the largest consulting firms in Brazil, in square meters.
st
nd
Top Imobiliário: 1 place in the Development category, 2 place in the Construction Company
th
category; and 7 place in the Seller category.
nd
Valor 1000: listed among the 1,000 largest companies in Brazil (202 place).
nd
Best & Largest of Exame magazine: 162 place.
SUSTAINABILITY
Sustainability is part of Even’s identity. The Company encourages the development of projects and new
technologies that promote reduced waste generation, the rational use of natural resources (including energy
and water) and the use of environmental-friendly materials.
Even’s product portfolio currently includes 40 projects with the Aqua certification, of which 4 have already
been delivered and 36 are under construction, and one large project with Leed Silver pre-certification, which
is also under construction. This strategy makes Even’s products more attractive from the commercial
standpoint, since it provides them with competitive edge that can influence a purchasing decision, as the
Company’s products fulfill criteria related to sustainability and the use of natural resources such as energy
and water.
On a comparison basis, these projects, in relation to other projects that do not fulfill these criteria, allow an
average reduction of 27% in water consumption by clients and 39% in energy consumption in common
areas. These are significant figures that not only are in line with the current water crisis but also translate into
savings to clients.
During the construction works, the Company implements processes that reduce water and energy
consumption or even reuse water in certain phases or living areas of the construction site. Based on the
results obtained from six years of analysis, three years ago the Company established targets to reduce
energy and water consumption, thus ensuring efficiency and quick correction in case of deviations.
Even’s works in progress already include contingency plans in case of water rationing or shortage of these
inputs from the concessionaries.
SUBSEQUENT EVENTS
After the close of 4Q14, the Company repurchased 409,111 shares, or R$1.9 million, thus the program
reached 100%.
Page 23 of 33
EXHIBITS
EXHIBIT 1 – Income Statement
Consolidated Income Statement (in thousands of reais)
(unaudited by the independent auditors)
INCOME STATEMENT
Gross revenue from sales and/or services
1Q14
487,879
2Q14
589,719
3Q14
566,956
4Q14
621,252
2014
2,265,806
2013
2,521,031
Net revenue from sales and/or services
Development and resale of properties
Service rendering
Gross revenue deductions
475,489
477,433
10,446
(12,390)
573,665
577,610
12,109
(16,054)
551,662
553,385
13,571
(15,294)
605,079
607,050
14,202
(16,173)
2,205,895
,215,478
50,328
(59,911)
2,458,987
2,460,942
60,089
(62,044)
(345,933)
129,556
27.2%
35.3%
(427,606)
146,059
25.5%
31.7%
(374,868)
176,794
32.0%
38.5%
(443,248) (1,591,655) (1,763,648)
161,831
614,240
695,339
26.7%
27.8%
28.3%
33.4%
34.6%
33.5%
(89,863)
(38,293)
(43,733)
(1,984)
(5,853)
(100,764)
(42,586)
(48,573)
(1,790)
(7,815)
(105,912)
(42,281)
(51,050)
(1,821)
(10,760)
(109,582)
(54,416)
(42,840)
(1,792)
(10,534)
(406,121)
(177,576)
(186,196)
(7,387)
(34,962)
(366,611)
(163,392)
(172,950)
(7,424)
(22,845)
39,693
45,295
70,882
52,249
208,119
328,728
(455)
2
-
2
(451)
1,935
25,332
(6,053)
31,385
64,570
24,033
(9,188)
33,221
69,330
37,599
(7,816)
45,415
108,481
28,612
(11,882)
40,494
80,863
115,576
(34,939)
150,515
323,244
47,272
(38,620)
85,892
377,935
(9,937)
(12,045)
2,108
54,633
(13,405)
(16,166)
2,761
55,925
(12,523)
(12,698)
175
95,958
(13,482)
(15,536)
2,054
67,381
(49,347)
(56,445)
7,098
273,897
(49,588)
(53,514)
3,926
328,347
(820)
(7,256)
(13,550)
141
(21,485)
(45,461)
Net income for the period
53,813
48,669
82,408
67,522
252,412
282,886
Net Margin
Net Margin (without minority interest)
11.3%
11.5%
8.5%
9.7%
14.9%
17.4%
11.2%
11.1%
11.4%
12.4%
11.5%
13.3%
Incurred cost of goods sold
Gross profit
Gross Margin
Gross Margin (ex-financing)
Operating Income (Expenses)
Selling
General and Administrative
Management Fees
Other operating income (expenses), net
Operating income (loss) before profit of subsidiaries,
financial result
Share of profits of subsidiaries
Financial Result
Financial Expenses
Financial Income
Income before Income Tax and Social Contribution
Income Tax and Social Contribution
Current
Deferred
Net Income before Minority Interest
Minority Interest
Page 24 of 33
EXHIBIT 2 – Balance Sheet
Consolidated Balance Sheet (in thousands of reais)
ASSETS
Accounts receivable
Properties for sale
Taxes and contributions receivable
Current assets
03/31/2014 06/30/2014 09/30/2014 12/31/2014 12/31/2013
645,745
726,807
682,944
721,266
765,547
1,781,542
1,759,275
1,800,587
1,640,415
1,880,015
725,772
722,911
707,289
745,778
707,074
8,339
11,237
12,427
8,965
7,015
91,452
112,112
101,402
88,582
83,659
3,252,850
3,332,342
3,304,649
3,205,006
3,443,310
Accounts receivable
Properties for sale
Current accounts with partners at the developments
Advances for future capital increase
Related parties
Investments
Property, plant and equipment
Intangible assets
Non-current assets
435,328
866,201
80,187
629
5,284
17,526
28,180
8,239
1,441,574
342,739
996,575
31,294
635
8,213
14,045
30,823
8,986
1,433,310
323,093
1,102,242
41,462
652
25,896
9,469
26,554
9,243
1,538,611
373,269
1,165,565
39,673
13,805
667
24,962
22,947
24,884
9,302
1,675,074
395,553
819,565
80,789
612
5,185
19,746
31,269
8,664
1,361,383
Total Assets
4,694,424
4,765,652
4,843,260
4,880,080
4,804,693
LIABILITIES AND EQUITY
Suppliers
Loans and financing
Debentures
Taxes and contributions payable
Taxes payable
Advances from clients
Proposed dividends
Provisions
Current liabilities
Provisions
Taxes payable
Loans and financing
Debentures
Deferred income tax and social contribution
Long-term liabilities
03/31/2014 06/30/2014 09/30/2014 12/31/2014 12/31/2013
67,503
94,031
73,366
64,430
68,031
33,366
41,443
45,169
37,357
38,087
516,368
458,363
606,896
510,406
464,947
5,107
4,726
3,501
2,691
7,884
112,747
113,139
113,502
163,915
115,998
39,269
46,649
47,177
42,809
43,084
42,289
41,544
41,925
38,376
45,433
28,408
31,570
18,797
4,434
14,101
10,804
10,001
16,121
11,114
11,194
67,186
59,948
67,186
25,000
15,000
22,500
22,500
25,000
86,607
50,167
84,117
59,450
84,886
1,034,654
906,633
1,073,071
1,017,430
985,831
58,066
65,483
10,334
926,490
2,073
190,990
47,930
27,903
1,329,269
51,305
61,579
8,094
1,131,740
1,783
191,159
45,169
16,190
1,507,019
59,880
70,176
7,523
967,866
1,749
191,329
44,994
13,609
1,357,126
88,145
85,950
8,732
1,054,453
1,735
141,498
42,940
19,702
1,443,155
60,302
52,689
9,559
1,007,635
2,578
294,987
50,038
25,198
1,502,986
Minority interest
Shareholder’s Equity
1,083,266
(21,503)
(15,775)
27,826
947,972
2,021,786
308,715
2,330,501
1,683,266
(28,934)
(15,775)
28,856
396,641
2,064,054
287,946
2,352,000
1,683,266
(36,934)
(15,775)
29,577
479,049
2,139,183
273,880
2,413,063
1,683,266
(61,440)
(15,775)
30,298
486,623
2,122,972
296,523
2,419,495
1,083,266
(15,775)
26,518
894,159
1,988,168
327,708
2,315,876
Total liabilities and shareholders’ equity
4,694,424
4,765,652
4,843,260
4,880,080
4,804,693
Capital Stock attributed to controlling shareholders
Treasury shares
Transaction cost
Stock Options Plan
Profit reserve
Page 25 of 33
EXHIBIT 3 – Statement of Cash Flow
Statement of Cash Flow (in thousands of reais)
CASH FLOW
Income before income tax and social contribution
1Q14
64,570
2Q14
69,330
3Q14
108,481
4Q14
80,863
2014
323,244
2013
377,935
455
4,410
1,106
1,308
7,500
1,302
3,993
24,254
(2)
5,616
1,115
1,030
7,500
1,645
1,950
17,979
6,621
810
721
8,208
3,754
4,843
36,080
(2)
4,016
841
721
9,442
6,332
28,002
451
20,663
3,871
3,780
23,208
16,143
17,118
106,315
(1,935)
13,966
3,270
3,028
31,364
7,173
7,510
66,993
58,699
(65,334)
212
(1,324)
(7,892)
(528)
(6,957)
14,307
(6,184)
(3,282)
4,426
(19,813)
75,228
114,855
(127,513)
48,090
(2,898)
(23,589)
26,529
1,316
3,162
4,395
(671)
(73,153)
(28,025)
48,661
(21,666)
109,996
(90,045) (101,812)
(4,048)
(3,218)
(1,190)
3,462
(6,973)
10,032
(20,666)
(8,936)
12,301
20,453
(12,773)
(14,363)
338
(6,708)
(1,259)
(824)
30,659
(18,573)
(27,616)
22,784
26,580
142,508
261,884
(384,704)
41,036
(1,950)
(28,422)
(3,601)
27,113
(9,667)
(8,159)
(6,036)
(56,641)
(52,670)
292,977
62,080
(319,687)
(5,327)
1,474
19,118
(8,957)
(29,333)
3,833
(7,755)
(9,556)
(10,071)
(71,810)
133,313
Interest paid
Income tax and social contribution paid
Cash flows from operating activities
(14,207)
(12,045)
48,976
(8,415)
(16,166)
24,080
(9,403)
(12,698)
4,479
(9,228)
(15,536)
117,744
(41,253)
(56,445)
195,279
(36,741)
(53,514)
43,058
Decrease (increase) in financial investments
Acquisition of property, plant and equipment and intangible assets
Increase in investments
Profit received
Advance for future capital increase
Cash flow from investing activities
109,955
(2,002)
542
1,223
109,718
(102,020)
(10,121)
1,750
1,733
(108,658)
37,498
(3,418)
3,966
610
38,656
(42,831)
(3,247)
(22,648)
9,172
(10,083)
(69,637)
2,602
(18,787)
(16,390)
12,738
(10,083)
(29,920)
(202,318)
(26,475)
(3,767)
19,886
(212,674)
186,849
(333,869)
483,378
(345,135)
(17)
(21,503)
(168,540)
(6)
(7,432)
(67,186)
63,619
(17)
(7,999)
(49,500)
(15)
(24,506)
(52,616)
(55)
(61,440)
(67,186)
(207,037)
1,301
(61,018)
156,121
Increase (decrease) in cash and cash equivalents
(9,846)
(20,959)
(6,365)
(4,510)
(41,679)
(13,495)
Cash at the beginning of the period
Cash at the end of the period
48,153
38,306
38,306
17,348
17,348
10,983
10,983
6,474
48,153
6,474
61,648
48,153
Adjustments to reconcile profit to cash generated from operating
activities
Equity accounting
Write-off of property, plant and equipment and intangible assets
Stock option plan
Profit sharing
Provision for guarantees
Provision for civil and labor risks
Accrued interest rates
Change in current and noncurrent assets and liabilities
Escrow accounts
Accounts receivable
Properties for sale
Other assets
Suppliers
Payables for property acquisition
Discount of receivables
Other liabilities
Changes in non-controlling shareholders
Cash (used in) generated by operating activities
From third-parties:
Inflow of new loans and financing
Payment of loans, financing and debentures
From shareholders/related parties:
(Payment) inflow of related parties, net
Acquisition of treasury shares
Dividends paid, net of unclaimed dividends
Cash flow from financing activities
191,405
218,491
1,080,123 1,111,897
(232,889) (246,586) (1,158,479) (896,059)
Page 26 of 33
EXHIBIT 4 – Net Assets
Net assets
12/31/2014
721,266
(1,870,272)
Cash and cash equivalents and financial investments
Loans, financing and debentures payable
Net debt
(1,149,006)
On-balance accounts receivable from clients
Off-balance accounts receivable from clients
Reversal of adjustment to present value
Taxes on accounts receivable from clients
2,013,684
2,164,248
(4,434)
50,984
(168,979)
Accounts receivable from clients, net of taxes
4,055,503
(1,326,016)
28,559
Liabilities from construction of properties sold
Partners from business receivable (payable)
Other accounts receivable (payable)
(1,297,457)
2,995,651
(119,826)
(1,252,910)
373,046
Inventory units at market value
Taxes on sale of inventory units
Budgeted cost to be incurred from inventory properties
Adjustment of developments accounted as recorded
Net inventory
1,995,961
522,628
875,930
(10,683)
(875,930)
(114,819)
On-balance land inventory
Off-balance land inventory
On-balance land debt
Off-balance land debt
Debt of lots already launched
Land
397,126
22,947
-
On balance projects consolidated by equity accounting
Off-balance projects consolidated by equity accounting
Projects consolidated by equity accounting
22,947
(296,523)
(82,021)
On-balance minority interest
Off-balance minority interest
Minority interest
(378,544)
Other assets
Other liabilities
157,362
(346,375)
Other assets (liabilities)
(189,013)
Net assets
3,457,517
224,774
Number of ex-treasury shares ('000) on March 9, 2015
Net asset per share
1.996
15.38
397
4.056
23
1.870
1.297
3.458
379
1.011
721
Cash
189
Accounts
Receivable
Inventory
Lots
Equity
Indebtedness
Accounting
Accounts
Payable
Minority
Interest
Other assets Net Assets Market Cap
and liabilities
on 03/10/2015
Page 27 of 33
EXHIBIT 5 – Land Bank
The table shows the land acquired by the Company, by project, as of December 31, 2014:
Lot
Location
EPO Paranasa . DUO
Monterosso . Maxime
Atlantida F1
Atlantida F2
Atlantida F3
Lot I
Lot II
Lot III
Lot IV
Lot V
Lot VI
Lot VII
Lot VIII
Lot IX
Lot X
Lot XI
Lot XII
Lot XIII
Lot XIV
Lot XV
Lot XVI
Lot XVII
Lot XVIII
Lot XIX
Lot XX
Lot XXI
Lot XXII
Lot XXIII
Lot XXIV
Lot XXV
Lot XXVI
Lot XXVII
Lot XXVIII
Lot XXIX
Lot XXX
Lot XXXI
Lot XXXII
Lot XXXIII
Lot XXXIV
Lot XXXV
Lot XXXVI
Lot XXXVII
Lot XXXVIII
Lot XXXIX
Lot XL
Lot XLI
Lot XLII
Lot XLIII
Lot XLIV
Lot XLV
Lot XLVI
Lot XLVII
Lot XLVIII
Lot XLIX
Lot L
Lot LI
Lot LII
Lot LIII
Lot LIV
Lot LV
60 lots or phases
Minas Gerais
Minas Gerais
Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul
São Paulo
Rio de Janeiro
Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul
São Paulo
São Paulo
São Paulo
Rio de Janeiro
Rio Grande do Sul
São Paulo
Rio de Janeiro
Rio de Janeiro
Rio de Janeiro
Rio de Janeiro
Rio Grande do Sul
Rio de Janeiro
Rio de Janeiro
São Paulo
São Paulo
São Paulo
São Paulo
São Paulo
São Paulo
São Paulo
Rio de Janeiro
São Paulo
Rio de Janeiro
Rio de Janeiro
Rio de Janeiro
São Paulo
São Paulo
São Paulo
São Paulo
São Paulo
São Paulo
Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul
São Paulo
Rio de Janeiro
Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul
São Paulo
Rio Grande do Sul
São Paulo
Rio de Janeiro
Rio de Janeiro
Rio de Janeiro
Rio Grande do Sul
Purchase
date
Jul-07
May-07
May-10
May-10
May-10
Oct-07
May-10
May-10
May-10
May-10
Sep-10
Jul-10
Jul-10
Jul-10
Jun-11
Aug-11
Dec-11
Sep-12
Jul-12
Jul-12
Jan-12
Jul-12
Apr-13
Aug-13
Nov-13
Dec-13
Jun-13
Jan-13
Jan-13
Jan-13
Dec-13
Jan-14
Jan-14
Mar-14
Mar-14
May-14
Feb-14
Jan-14
Apr-14
Apr-14
May-14
Jun-14
May-14
May-14
Mar-14
Jun-14
Jul-14
Sep-14
Sep-14
Sep-14
Sep-14
Sep-14
Sep-14
Oct-14
Oct-14
Nov-14
Dec-14
Dec-14
Dec-14
Dec-14
Areas (m²)
Lot
Usable
8,228
17,074
9,511
20,094
32,530
3,925
33,506
3,925
32,472
3,797
5,014
8,644
8,410
15,704
1,008
181
603
108
603
108
12,896
8,971
19,685
21,290
19,685
21,290
19,685
21,290
8,410
15,704
6,348
3,824
20,273
47,509
15,969
23,552
7,062
16,883
7,062
17,455
11,753
18,889
1,523
2,611
2,507
4,559
44,267
17,538
6,903
13,596
1,280
4,782
4,861
10,461
6,229
7,660
19,145
23,544
26,531
32,628
2,067
13,273
8,205
27,608
3,868
12,743
17,287
22,397
14,608
18,926
16,363
19,688
1,453
3,849
6,050
11,411
5,650
13,857
2,466
11,420
8,208
16,351
3,920
16,989
189,471
89,810
455,094
212,621
32,085
20,896
6,170
13,170
6,773
9,685
3,109
14,156
5,459
13,175
44,145
22,541
15,475
7,273
40,206
22,447
3,834
11,646
4,734
19,077
4,878
7,164
4,598
9,147
20,280
27,948
18,022
24,836
15,711
21,652
5,024
13,061
1.359.169
1,552,819
Units
208
178
88
88
86
137
186
389
243
243
172
327
327
327
186
72
188
382
192
197
238
12
46
267
258
16
56
84
336
276
234
420
70
376
318
288
98
211
263
376
302
302
284
902
400
208
131
204
342
352
194
288
462
334
22
169
422
376
282
65
14,500
Expected PSV
Total
Even
157,023
157.023
147,268
147.268
69,099
55.279
71,174
56.939
68,977
55.182
24,282
24.282
115,484
115.484
205,063
164.050
122,672
98.137
122,672
98.137
64,847
48.227
120,970
120.970
120,970
120.970
120,970
120.970
115,484
115.484
18,670
14.936
177,581
88.791
122,093
122.093
127,443
127.443
130,767
130.767
131,452
131.452
22,933
18.346
40,370
40.370
105,174
105.174
87,923
87.923
72,543
36.271
146,556
146.556
66,190
66.190
203,443
203.443
281,937
281.937
98,356
98.356
164,425
164.425
147,298
147.298
131,375
131.375
110,758
110.758
119,725
119.725
70,936
70.936
78,711
78.711
99,163
99.163
195,612
97.806
116,699
116.699
214,835
214.835
45,633
36.506
34,521
27.617
176,030
119.701
76,726
61.381
53,867
43.093
177,580
177.580
94,565
94.565
135,755
92.313
47,588
32.360
123,642
84.076
82,477
32.991
133,889
133.889
61,977
42.145
56,240
56.240
177,209
177.209
157,479
157.479
137,286
137.286
71,870
48.872
6,774,257
6,105,485
Page 28 of 33
EXHIBIT 6 – Evolution of sales and percentage of completion of costs
The table below presents the evolution in sales and the percentage of completion of the costs of our projects
on December 31, 2014 compared to September 30, 2014 and December 31, 2013:
Project
Icon (São Paulo)
Azuli
Horizons
Personale
Reserva Granja Julieta
Window
The View
Terra Vitris
Breeze Alto da Lapa
Club Park Santana
Duo
EcoLife Cidade Universitária
Vitá Alto da Lapa
Reserva do Bosque
Campo Belíssimo
Wingfield
Boulevard São Francisco
Iluminatto
Inspiratto
Particolare
Plaza Mayor Vila Leopoldina
Vida Viva Mooca
Vida Viva Tatuapé
Especiale
Le Parc
Tendence
Verte
Vida Viva Santa Cruz
Concetto
In Cittá
The Gift
Vida Viva Freguesia do Ó
Vida Viva Vila Maria
Arts ibirapuera
Breeze Santana
Gabrielle
L'essence
Spazio Dell´Acqua
Vitá Araguaia
Du Champ
Grand Club Vila Ema
Villagio Monteciello
Terrazza Mooca
Veranda Mooca
Nouveaux
Signature
Up Life
Vida Viva Butantã
Vida Viva São Bernardo
Vivre Alto da Boa Vista
Vida Viva Parque Santana
Sophistic
Weekend
Club Park Butantã
Double
Icon (Belo Horizonte)
Open Jardim das Orquídeas
Open Jardim das Orquídeas (units not launched)
Magnifique
GRU Central Office/ Everyday Resid. Club
Paulistano
Plaza Mayor Ipiranga
Launch % Even
2Q03
3Q03
4Q03
2Q04
3Q04
4Q04
1Q05
3Q05
4Q05
4Q05
4Q05
4Q05
4Q05
2Q06
3Q06
3Q06
4Q06
4Q06
4Q06
4Q06
4Q06
4Q06
4Q06
1Q07
1Q07
1Q07
1Q07
1Q07
2Q07
2Q07
2Q07
2Q07
2Q07
3Q07
3Q07
3Q07
3Q07
3Q07
3Q07
4Q07
4Q07
4Q07
4Q07
4Q07
4Q07
4Q07
4Q07
4Q07
4Q07
4Q07
4Q07
1Q08
1Q08
2Q08
2Q08
2Q08
2Q08
2Q08
2Q08
2Q08
2Q08
2Q08
50%
50%
50%
50%
15%
100%
45%
100%
100%
100%
25%
40%
100%
100%
100%
100%
100%
100%
100%
15%
75%
100%
100%
100%
50%
50%
100%
100%
100%
100%
50%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
85%
100%
100%
100%
50%
30%
100%
% Sold
PoC
12/31/2014 09/30/2014 12/31/2013 12/31/2014 09/30/2014 12/31/2013
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
88%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
98%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
98%
98%
98%
100%
100%
98%
94%
94%
94%
100%
100%
97%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
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100%
100%
100%
100%
100%
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99%
100%
100%
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100%
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100%
100%
100%
100%
100%
95%
95%
96%
100%
99%
92%
100%
100%
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100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
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100%
100%
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100%
99%
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99%
100%
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100%
100%
100%
100%
100%
100%
100%
99%
100%
100%
100%
100%
100%
99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
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100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
99%
99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
97%
98%
100%
100%
100%
100%
86%
85%
86%
79%
79%
79%
0%
0%
0%
0%
0%
0%
100%
100%
100%
100%
100%
100%
100%
100%
96%
100%
100%
100%
91%
91%
92%
95%
97%
96%
100%
100%
100%
100%
100%
100%
Continuation on the next page.
Page 29 of 33
Project
Vida Viva Golf Club
Cinecittá (1st phase)
Incontro
Montemagno
Pleno Santa Cruz
Timing
Vida Viva Jardim Itália
Vida Viva Vila Guilherme
Arte Luxury Home Resort
E-Office Design Berrini
Montemagno – 2nd phase
Plaza Mayor Ipiranga - 2nd phase
Honoré Bela Vista
Spot Cidade Baixa
Terra Nature - Ipê
Shop Club Guarulhos (1st phase)
Cinecittá (2nd phase)
Shop Club Guarulhos (2nd phase)
Terra Nature - Jatobá
Terra Nature - Cerejeiras
Spazio Vittá Vila Ema
Shop Club Vila Guilherme
Atual Santana
Spazio Vittá Vila Ema - (2nd phase)
Oscar Freire Office
Terra Nature - Nogueira
Terra Nature Pau-Brasil
Duo Alto da Lapa
Altto Pinheiros
Allegro Jd Avelino
The One
Alegria
Ideal
Near
Praça Jardim
Novitá Butantã
VV Clube Iguatemi (Granada)
Casa do Sol (Jade)
Novitá Butantã - 2nd phase
Code
Soho Nova Leopoldina
Tribeca Nova Leopoldina
Montemgano – 3rd phase
Passeio
Nouveau Vila da Serra
VV Clube Moinho
Passione
Bela Cintra
Code Berrini
Concept
Caminhos da Barra
Dream
Sena Madureira
Royal Blue
Ideal Brooklin
Passione Duo
Fascinio Vila Mariana
Cube
Park Club Bairro Jardim
True
Ponta da Figueira
Arte Bela Vista
Vivace Castelo
Moratta Vila Ema
Giardino
Diseño Campo Belo
Hom
L'Essence 2nd phase
Launch % Even
2Q08
3Q08
3Q08
3Q08
3Q08
3Q08
3Q08
3Q08
4Q08
4Q08
4Q08
4Q08
1Q09
1Q09
1Q09
1Q09
2Q09
2Q09
2Q09
2Q09
2Q09
2Q09
2Q09
3Q09
3Q09
3Q09
3Q09
3Q09
3Q09
3Q09
4Q09
4Q09
4Q09
4Q09
4Q09
4Q09
4Q09
4Q09
1Q10
1Q10
1Q10
1Q10
1Q10
1Q10
2Q10
2Q10
2Q10
2Q10
2Q10
2Q10
2Q10
2Q10
3Q10
3Q10
3Q10
3Q10
3Q10
3Q10
3Q10
3Q10
3Q10
4Q10
4Q10
4Q10
4Q10
4Q10
4Q10
4Q10
100%
85%
100%
100%
100%
100%
100%
100%
50%
50%
100%
100%
50%
50%
46%
100%
85%
100%
46%
46%
100%
100%
100%
100%
100%
46%
46%
100%
100%
100%
100%
100%
100%
100%
100%
100%
50%
50%
100%
100%
50%
50%
100%
35%
43%
50%
100%
50%
80%
100%
100%
50%
100%
50%
67%
100%
100%
100%
50%
100%
18%
50%
100%
100%
100%
100%
50%
100%
% Sold
PoC
12/31/2014 09/30/2014 12/31/2013 12/31/2014 09/30/2014 12/31/2013
100%
100%
100%
100%
100%
100%
99%
99%
99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
93%
93%
94%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
99%
97%
100%
100%
100%
98%
97%
96%
100%
100%
100%
96%
96%
97%
100%
100%
100%
97%
97%
96%
100%
100%
100%
81%
50%
37%
100%
100%
100%
99%
99%
98%
100%
100%
100%
100%
100%
99%
100%
100%
100%
99%
99%
99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
98%
98%
100%
100%
100%
100%
99%
99%
99%
100%
100%
100%
96%
95%
97%
100%
100%
100%
54%
40%
32%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
99%
98%
100%
100%
100%
100%
100%
100%
100%
100%
100%
95%
96%
93%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
99%
100%
100%
100%
100%
100%
100%
99%
100%
100%
100%
98%
98%
97%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
97%
98%
100%
100%
100%
100%
98%
99%
99%
100%
100%
100%
98%
91%
90%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
99%
100%
100%
100%
96%
96%
99%
100%
100%
100%
100%
100%
100%
100%
100%
100%
95%
95%
95%
100%
100%
100%
100%
99%
99%
100%
100%
100%
96%
97%
98%
100%
100%
95%
100%
100%
100%
100%
100%
100%
97%
90%
79%
100%
100%
100%
100%
100%
100%
100%
100%
100%
98%
98%
100%
100%
100%
89%
93%
93%
91%
100%
100%
100%
99%
99%
98%
100%
100%
100%
80%
80%
76%
100%
100%
99%
87%
89%
79%
85%
84%
70%
75%
69%
83%
100%
100%
100%
98%
97%
70%
100%
100%
100%
100%
99%
99%
100%
100%
100%
97%
97%
97%
100%
100%
100%
96%
96%
97%
100%
100%
94%
100%
100%
100%
100%
100%
100%
Page 30 of 33
Project
Royal Blue (Disa Catisa) 2nd phase
Arizona 701
Design Campo Belo
Airport Office
Reserva da Praia
Bravo Saturnino II
Level Alto da Lapa
Campo Grande Office & Mall
Panorama Vila Mariana
Praças da Lapa
E-Office Vila da Serra
Art Pompeia
New Age
Ideale Offices
Ária
Grand Park Eucaliptos
Caminhos da Barra Mais
Arq Escritórios Moema
Vitrine Offices Pompéia
Vivaz Vila Prudente
NY SP
Vida Viva Club Canoas - Brita
Baltimore
Spot Office Moema
Cenário da Vila
Window Belém
Prime Design
Feel Cidade Universitária
Pateo Pompéia
Edifício Red Tatuapé
Viverde Residencial
Villaggio Nova Carrão
Cobal - Rubi
Altto Campo Belo
Vista Mariana
Estilo Bom Retiro
Vida Viva Club Canoas – 2nd phase
Supreme
Alameda Santos
Mosaico Vila Guilherme
Vitalis
Paulista Tower
Viverde Residencial – 2nd phase
Haddock Businness
Boreal Santana
Plenna Vila Prudente
Air Campo Belo
Acervo Pinheiros
Arcos 123
Verano Clube Aricanduva
Braz Leme Offices
Bella Anhaia Mello
Somma Brooklin
Design Offece Center
Roseira
Essência Brooklin
Torre Pinheiros
Anália Franco Offices
Haddock Offices
Quatro Brooklin
London SP
Club Park Remédios
Riachuelo 366 Corporate
Vida Viva Club Canoas - Brita 3rd phase
Clube Centro
Quartier Cabral
Hom lindoia
Nine
Launch % Even
4Q10
1Q11
1Q11
1Q11
1Q11
1Q11
2Q11
2Q11
2Q11
2Q11
2Q11
2Q11
2Q11
2Q11
2Q11
3Q11
3Q11
3Q11
3Q11
3Q11
3Q11
4Q11
4Q11
4Q11
4Q11
4Q11
4Q11
4Q11
4Q11
4Q11
4Q11
4Q11
4Q11
1Q12
1Q12
1Q12
1Q12
1Q12
1Q12
1Q12
1Q12
1Q12
1Q12
2Q12
2Q12
2Q12
3Q12
3Q12
3Q12
3Q12
3Q12
3Q12
3Q12
3Q12
3Q12
4Q12
4Q12
4Q12
4Q12
4Q12
4Q12
4Q12
4Q12
4Q12
4Q12
4Q12
4Q12
4T12
50%
80%
70%
100%
45%
50%
100%
100%
100%
100%
85%
90%
100%
100%
50%
80%
50%
100%
100%
100%
100%
80%
80%
100%
100%
100%
100%
100%
88%
100%
85%
100%
80%
50%
100%
100%
80%
80%
100%
100%
100%
100%
85%
50%
100%
100%
100%
100%
100%
100%
50%
100%
100%
80%
46%
100%
100%
100%
100%
100%
100%
100%
100%
80%
80%
50%
80%
80%
% Sold
PoC
12/31/2014 09/30/2014 12/31/2013 12/31/2014 09/30/2014 12/31/2013
99%
99%
100%
100%
100%
95%
99%
99%
100%
100%
100%
87%
81%
83%
79%
100%
100%
78%
82%
81%
84%
100%
100%
92%
99%
99%
99%
100%
100%
98%
78%
72%
66%
100%
100%
100%
96%
95%
77%
100%
100%
100%
94%
93%
89%
100%
100%
100%
100%
98%
100%
100%
100%
93%
95%
95%
98%
100%
100%
96%
78%
78%
77%
100%
95%
76%
97%
92%
89%
100%
100%
100%
98%
98%
95%
100%
100%
81%
100%
100%
98%
100%
100%
93%
88%
88%
65%
100%
100%
86%
87%
88%
82%
89%
85%
69%
99%
99%
100%
100%
100%
89%
68%
57%
50%
100%
100%
92%
97%
96%
95%
100%
100%
100%
77%
64%
65%
100%
100%
92%
100%
100%
98%
100%
95%
71%
79%
79%
75%
76%
70%
46%
89%
87%
85%
98%
92%
77%
88%
87%
82%
100%
100%
86%
99%
98%
99%
100%
100%
86%
96%
94%
83%
100%
100%
87%
97%
97%
93%
100%
100%
83%
95%
90%
76%
100%
100%
100%
99%
99%
85%
100%
100%
86%
90%
83%
58%
100%
94%
75%
98%
98%
98%
95%
90%
74%
87%
87%
58%
100%
100%
95%
92%
91%
83%
92%
87%
69%
71%
71%
82%
84%
77%
52%
100%
100%
100%
100%
100%
75%
95%
97%
99%
100%
100%
78%
67%
65%
51%
76%
70%
46%
96%
95%
76%
96%
91%
76%
85%
85%
85%
100%
97%
87%
79%
79%
79%
100%
100%
88%
98%
93%
58%
100%
100%
81%
94%
94%
99%
86%
79%
65%
97%
98%
98%
95%
90%
74%
67%
64%
54%
89%
79%
54%
58%
53%
30%
85%
73%
44%
82%
75%
73%
100%
94%
64%
100%
100%
100%
87%
78%
51%
46%
48%
42%
77%
70%
55%
96%
98%
100%
51%
45%
37%
81%
78%
75%
100%
90%
56%
60%
57%
50%
93%
81%
45%
71%
71%
74%
88%
78%
49%
83%
79%
62%
90%
85%
60%
94%
94%
92%
82%
73%
54%
88%
88%
81%
100%
100%
100%
82%
81%
69%
81%
73%
52%
72%
69%
53%
93%
87%
66%
74%
69%
44%
73%
63%
38%
97%
97%
98%
74%
65%
46%
44%
44%
37%
63%
55%
44%
96%
95%
95%
62%
56%
49%
85%
83%
81%
69%
57%
38%
53%
52%
49%
55%
50%
39%
67%
65%
51%
76%
70%
46%
53%
51%
41%
61%
53%
35%
82%
80%
65%
70%
65%
57%
83%
84%
72%
72%
64%
43%
88%
88%
80%
72%
65%
44%
Page 31 of 33
Project
Wish Moema
Bosques da Lapa
Matriz Freguesia
Icon
Verdi Spazio
Parques da Lapa
Residencial Pontal
Linea Perdizes
Icon RS - 2º Fase
Diseno Alto de Pinheiros
Estações Mooca
Story Jaguaré
Autêntico Mooca
Residencial Pontal 2nd phase
Blue Note
Design Arte
Vero
BC Bela Cintra
Verte Belém
Wise
RG Personal Residences
Urbanity Residencial/Salas comerciais
Urbanity Corporativo
Terrara
Window RS
Anita Garibaldi
Assembleia One
SP Sumare Perdizes
Icon RS – 3rd phase
Story Jaguaré 2nd phase
Vida Viva Club Canoas - Brita 4th phase
Quintas da Lapa
Clube Jardim Vila Maria
Parque Jardim Vila Guilherme
Mariz Vila Mariana
Vila Jardim Casa Verde
Bio Tatuapé
Clube Centro 2nd phase
Vernissage Pinheiros
RG Personal Residences 2nd phase
Portal Centro
Ato
Hotel Ibis
Martese Alto da Lapa
UP Barra
Vida Viva Boulevard
Launch % Even
1Q13
1Q13
1Q13
1Q13
2Q13
2Q13
2Q13
2Q13
2Q13
3Q13
3Q13
3Q13
3Q13
3Q13
4Q13
4Q13
4Q13
4Q13
4Q13
4Q13
4Q13
4Q13
4Q13
4Q13
4Q13
4Q13
1Q14
1Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
3Q14
3Q14
4Q14
4Q14
4Q14
4Q14
4Q14
4Q14
4Q14
4Q14
100%
100%
100%
80%
100%
100%
100%
100%
80%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
50%
50%
100%
100%
100%
100%
100%
80%
100%
80%
50%
100%
100%
100%
100%
100%
80%
100%
100%
100%
80%
100%
100%
100%
80%
% Sold
PoC
12/31/2014 09/30/2014 12/31/2013 12/31/2014 09/30/2014 12/31/2013
66%
66%
61%
79%
72%
49%
94%
96%
98%
54%
41%
33%
79%
80%
77%
78%
65%
39%
96%
96%
84%
32%
30%
17%
59%
55%
54%
58%
50%
42%
89%
88%
73%
49%
43%
40%
76%
74%
72%
36%
32%
25%
65%
62%
61%
66%
56%
43%
66%
68%
60%
32%
25%
17%
40%
36%
36%
66%
59%
50%
48%
48%
35%
48%
43%
41%
49%
49%
20%
55%
45%
38%
97%
98%
98%
43%
37%
32%
25%
23%
20%
36%
32%
25%
42%
47%
13%
40%
36%
34%
69%
69%
57%
53%
48%
43%
32%
32%
15%
42%
33%
28%
68%
68%
44%
53%
44%
40%
77%
77%
61%
39%
37%
37%
100%
100%
91%
36%
31%
28%
16%
15%
7%
30%
27%
26%
80%
80%
44%
28%
25%
24%
8%
8%
44%
28%
25%
24%
59%
58%
36%
24%
24%
23%
41%
31%
28%
36%
36%
36%
87%
87%
68%
41%
38%
37%
68%
67%
N/A
52%
52%
N/A
9%
9%
N/A
42%
39%
N/A
84%
84%
N/A
32%
25%
N/A
40%
38%
N/A
55%
45%
N/A
85%
81%
N/A
76%
70%
N/A
27%
24%
N/A
28%
29%
N/A
53%
52%
N/A
42%
40%
N/A
39%
37%
N/A
37%
37%
N/A
27%
27%
N/A
45%
43%
N/A
46%
45%
N/A
43%
42%
N/A
29%
13%
N/A
33%
32%
N/A
83%
28%
N/A
61%
53%
N/A
12%
N/A
N/A
51%
N/A
N/A
11%
N/A
N/A
30%
N/A
N/A
29%
N/A
N/A
29%
N/A
N/A
48%
N/A
N/A
42%
N/A
N/A
17%
N/A
N/A
55%
N/A
N/A
39%
N/A
N/A
39%
N/A
N/A
70%
N/A
N/A
32%
N/A
N/A
74%
N/A
N/A
31%
N/A
N/A
Page 32 of 33
About Even
Even Construtora e Incorporadora S.A. is one of Brazil's largest builders and developers. It was the first and
only company in the construction industry to become a component of the Corporate Sustainability Index
(ISE) of the BM&Fbovespa S.A. – Securities, Commodities and Futures Exchange for the portfolio valid for
2009-10, with this situation repeating in the next four years. After carrying out an initial public offering in April
2007, Even’s operations have rapidly grown and expanded geographically, with a presence in the states of
São Paulo, Rio de Janeiro, Minas Gerais and Rio Grande do Sul. Even’s growth in the past three years has
been underpinned by a successful commercial strategy, which focuses on strong operating and financial
results, the development of projects with unique architectural designs and surpassing the expectations of its
customers. Even stock is traded on the Novo Mercado special corporate governance segment of the
BM&FBovespa S.A. under the ticker EVEN3.
Disclaimer
This release contains forward-looking statements relating to the business prospects, estimates of operating
and financial results and growth prospects for EVEN. These are merely projections and as such involve risks
and uncertainties, and therefore are no guarantee of future results. These forward-looking statements
depend substantially on changes in market conditions, government regulations, competitive pressures, the
performance of the Brazilian economy, among other factors, and therefore are subject to change without
prior notice.
Page 33 of 33
Publicly Held Company
National Register of Legal Entities CNPJ No. 43.470.988/0001-65
Commercial Registry Number NIRE 35.300.329.520
CAPITAL BUDGET PROPOSAL FOR 2015
Even Construtora e Incorporadora S.A.
Management’s Capital Budget Proposal for 2015-2017
In R$ thousand
Capitalizing part of the retained earnings reserve in 2014
Profit retention (art. 196)
Trade receivables, net of taxes
Trade receivables (2015 - 2017)
Taxes on revenue
600,000
371,404
4,010,854
4,177,973
(167,119)
Sources
5,248,256
Total budgeted cost to be incurred on developments
launched up to December 31, 2013 (2015 - 2017)
Corporate financing and Debentures (2015 - 2017)
Balance to be invested in future years
2,578,896
897,222
869,375
636,765
Investments
5,248,256
Financial Housing System (SFH) (2015 - 2017)
Opinion of the Statutory Audit Board or Equivalent Body
The Company’s By Laws establishes a non-permanent Fiscal Council, elected only by the
Company’s shareholders at the Annual General Meeting. For the fiscal year ended on December
31th, 2014 the Fiscal Council has not been installed.
São Paulo, March 06 of 2015
Dany Muszkat
Finance and Investor Relations Officer
Officers' Statement on the Financial Statements
Pursuant to the provisions of items V and VI of article 25 of CVM Instruction 480, we have
reviewed, held discussions about and agreed that the Financial Statements of Even Construtora e
Incorporadora S.A., for the year ended December 31, 2014, fairly reflect the Company's financial
position in the period presented.
Dany Muszkat
Officers' Statement on the Independent Auditor's Report
Pursuant to the provisions of items V and VI of article 25 of CVM Instruction 480, we have
reviewed, held discussions about and agreed with the opinions expressed in the report of Deloitte
Auditores Independentes on the financial statements of Even Construtora e Incorporadora S.A,
for the year ended December 31, 2014.
Dany Muszkat

2014 Financial Statements

Transcription

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