1December 2010

Corporate Presentation

2

Disclaimer

We make forward-looking statements that are subject to risks and uncertainties. These Statements are

based on the beliefs and assumptions of our management, and on information currently available to us.

Forward-looking statements include statements regarding our intent, belief or current expectations or that

of our directors or executive officers.

Forward-looking statements also include information concerning our possible or assumed future results

of operations, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,''

''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions.

Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and

assumptions because they relate to future events and therefore depend on circumstances that may or may

not occur. Our future results and shareholder values may differ materially from those expressed in or

suggested by these forward-looking statements. Many of the factors that will determine these results and

values are beyond our ability to control or predict.

118

90

66

50

36

23

PDG Cyrela MRV Rossi Brookfield

3

Shareholder Structure, Corporate Governance and LiquidityTrue corporation listed on the NYSE and the most li quid Brazilian Real Estate company

Avg. Daily Trading Volume (R$ mm) - Last 90 days 1

1. Source: Bloomberg as of November 12th, 2010

Majority Independent Board of Directors;

Senior management with an average of over 20

years of experience and interests aligned with

shareholders through Stock Option Plan;

Permanent Fiscal Council, Audit, Compensation,

Finance and Governance committees

100% free float;

100% tag along rights;

100% common shares (“Novo Mercado”);

Full compliance with Sarbanes-Oxley;

Only Brazilian real estate company listed on the

NYSE.

80% 100%

GFSA3

100%

3,921

3,022

1,740

1,204

664457

4

Solid Track Record of Value Creation

Foundation

IPO: R$494 mm of primary proceeds

Acquisition of a 60% stake

Equity International investment

Follow-on: R$488 mm of primary proceeds

First Brazilian company in the sector to be listed in the NYSE

Acquisition of a 60% stake

R$600 mm in FI-FGTS debentures(May/09)

Acquisition of the remaining 40%

Strong growth, value-creating transactions with a s uccessful history in the capital markets

Increase in stake from 60% to 80%

1

New Follow-on: Net Primary proceeds of R$1.02 billion

1954 - 2004 2005 2006 2007 2008 2009 2010

Net revenue (R$ mm)

R$600 mm in FI-FGTS debentures(Dec/09)

1. Source: Consensus Bloomberg as of August 6th, 2010

5

SECTION 1

Competitive Advantages

6

Mid and Upper-Mid Unit price: > R$200 thousand

Mid and Upper-Mid Unit price: R$70 – R$500 thousand

Affordable Entry-LevelUnit price: R$50 – R$200 thousand

Multifaceted Residential Products in All Income Seg ments

Focused on the residential market, with 3 leading b rands strategically positioned in all income segments

Pre

senc

eS

ales

Con

trib

utio

n9M

10

Inco

me

Seg

men

t /

Pric

e

49% 15% 36%

44 cities in 14 states 60 cities in 22 states 92 cities in 14 states

Com

plet

ed

Pro

ject

s

17 projects/phases in 2009 5 projects/phases in 2009 130 projects/phases in 2009

Cha

ract

eris

tics

VerticalMetropolitan areas

Custom projects

Horizontal lot developmentSuburban areasCustom projects

Horizontal / VerticalMetropolitan areas and surroundings

Standardized products

77

Strong Demand Growth in All SegmentsStrong potential demand of around R$170 billion per year, being 58% in the mid and upper mid income segment and 42% in the affordable entry-level segment

Gafisa: Positioned to capture growth in all income segments demand

Up to R$ 1,000 31.7 29.1

R$ 2,000 - R$ 4,000 8.4 21.8

R$ 4,000 - R$ 8,000 3.3 11.0

R$ 8,000 - R$ 16,000 1.1 4.3

R$ 16,000 - R$ 32,000 0.3 1.3

Above R$ 32,000 0 0.3

TOTAL 60.3 95.4

2007 2030

R$ 1,000 - R$ 2,000 15.5 27.6

Source: “O Brasil Sustentável”, FGV and Ernst & Young, 2007Notes:1. Assumes an average ticket of R$190,0002. Assumes an average ticket of R$85,000

Income Bracket(Monthly)

New Families per Year

(thousand)

Number of Families (mm)

1,526

Potential Demand (R$ bn)1

New Families(thousands)

530

101

Potential Demand (R$ bn)2

New Families(thousands)

846

72

Potential Demand per Year(R$ bn)

Gafisa Brands

(113)

526

583

335

139

43

13

1,526

Mid and Upper-Mid

Income

Affo

rdab

le

Ent

ry-L

evel

8

Landbank Distribution vs. GDP Distribution

National FootprintNational footprint captures both rapidly growing an d large metropolitan regions

Geographic Footprint

Real GDP Growth 1

GDP Distribution - 2006Landbank 3Q10

Source: Company and IBGENote: 1. Nominal GDP growth rate per year for 2003 – 2006 adjusted by the average consumer price index (IPCA) of the period2. Does not Include Brasilia Federal District .

Brand States 2 Cities Legend

14 44

14 92

22 60

Consolidated 22 130

North5%

Others Southeast11%

Northeast13%

Rio de Janeiro12%

São Paulo34%

South16%

Midwest9%

R$ 16.6 Billion

3.1%

4.7%

6.6% 6.9%

8.0%

South Midw est Southeas t Northeas t North

São Paulo

36%

Rio de Janeiro

15%Other Southeast

9%

North

6%

Northeast

15%

Midwest

12%

South

7%

9

9M10 Land bank PSV (R$ million)

Strategically Located Land Bank Gafisa has a strategic land bank that allows for co ntinued project launches

Land bank distribution

Total

39.74.041.9

38.5%16.692.1

97.04.829.0

37.97.821.2

CompanySwap

%

Future

sales

R$ billion

Potential

number of

units

(% Gafisa)

*Note: Tenda 2007 represents Fit + Bairro Novo

4.7x

1.6x

2,167

5,729

7,576 7,810

2,930

3,962 4,735

1,536

4,285 4,006

(2,948)

3,676

10,195

15,823

16,551

IPO 2006 2007 2009 9M10 Launches

Net Acquisitions

Actual 9M10

Gafisa Alphaville Tenda

242386

513 50831

47

58 59

186

241

309 352

459

674

880 919

2007 2008 2009 3Q10

Intern Enginners Construction Architects On the Job

6385

188

211

2007 2008 2009 3Q10

Units Under Construction Projects under Construction

Units Completed Number of Engineers

Source: Gafisa

Proven Track Record of Execution

10

16,099

33,586

49,423 50,189

2007 2008 2009 3Q10

3,108

8,206

10,831

9,995

E: 15,000

2007 2008 2009 9M10/2010E

1111

► 55 years in the Real Estate industry

► Completed more than 985 developments and 11 million m2

► Awards: Valor Top Management and Top Manager of the Year

► One of the best known brands in the affordable entry-level segment

► Completed more than 500 developments

► Completed more than 40 developments and 3.4 million m2

► Awards: Best Social Responsibility and 2009 Top Social –Alphaville Foundation

Strong Brand Recognition and Solid Reputation

Leading Brands

Source: ITCnet, Revista Marketing, Valor Econômico

Strong Brands in Every Segment

1stMaior Construtora do Brasil: Largest Construction Company in Brazil – 2008 / 2009 (ITCnet)

1st Reference in Urban Development

1stTop of Mind – 2008 (Diário do Grande ABC / IBOPE)

Gafisa benefits from its strong brand recognition a nd solid reputation through: (i) a higher sales speed (VSO); (ii) commanding premium p rices; and (iii) easier access to asset swaps / partnerships

1212

SECTION 2

Operating and Financial Performance

6641,004

1,215

1,757 1,576

193

250

277284

7

276

988932

664

1,204

1,740

3,022

2,792

2006 2007 2008 2009 9M10

9951,329 1,345 1,510 1,352

238300

37740660

932

1,361

1,007

995

1,627

2,578

3,248

2,766

2006 2007 2008 2009 9M10

1,005

1,698 1,913

1,265 1,332

237313

420549

300

1,970

617

1,068

1,005

2,236

4,196

2,301

4,200 to 4,600

2006 2007 2008 2009 9M10

1313

Launches, Contracted Sales and Revenues

Launches (R$mm) Pre-Sales (R$mm) Net Revenues (R$mm)

High growth rates over the last years ...

Note:1 2010E guidance range announced by the Company

1

2,949

AlphavilleGafisa Tenda

298

528

1,0151,066

1,309

37.5%

34.6%35.1% 35.2%

38.2%

2006 2007 2008 2009 9M10

REF (R$ mm) Margem (%)

46

92

110

214

279

6.9%

8.1%

9.6%9.9%

11.7%

0%

2%

4%

6%

8%

10%

12%

-20

30

80

130

180

230

280

330

2006 2007 2008 2009 9M10

Lucro Líquido (R$ mm) Margem (%)

41

89

180

259

530 550

13.4%

15.0% 14.9%

17.5%

2006 2007 2008 2009 9M10

EBITDA (R$ mm) Margin (%)

300

604

75

1414

EBITDA, Net Income and Results to be Recognized

Adjusted EBITDA 1 (R$ mm) and Margin (%)

Net Income (R$ mm) and Margin 2 (%)

Results to be Recognized (Backlog 4) (R$ mm) and Margin (%)

… aligned with sustained growth in profitability

Notes:1 Adjusted for stock options and excluding Tenda’s goodwill net of provisions2 Net income before minority interests and non-recurring expenses3 2010E guidance range announced by the Company4 Gross Profit

Tenda’s goodwill net of provisions

19.7%

18.5% to 20.5% 3

1,004

388

680 707

149

Up to Sep/2011 Up to Sep/2012 Up to Sep/2013 Up to Sep/2014 Up to Sep/2015

Project Finance (R$ mm) Corporate Debt (R$ mm)

3,307

1,846

553

527

380

Total

Investor Obligations

Debentures

Working Capital

SFH / Project Finance

1515

Debt Composition (R$ mm) and Rates9M10 Leverage (R$ mm)

Note:1 Does not include investors obligations of R$380 mm

Debt Maturity Schedule 1 (%)

Net Debt / Shareholders’ Equity

55.6%8.2% - 11.5% (TR)

CDI + (0.7% – 4.2%)

CDI

10.8%

Solid Balance Sheet

46%44%

67%85%

100%

CDI + (1.5 – 3.3%)

54%

56%

33%

3,307

1,231

2,076

Total Debt Cash Net Debt

15%

Liquidation Value (R$mn)

Company Gafisa Peer1 Peer2 Peer3 Peer4Receivables from Sold Units 8,466 10,455 11,463 5,669 5,081 (-) Taxes (571) (706) (774) (383) (343) (-) Obligations from Sold Units (2,120) (3,022) (3,673) (1,462) (1,771)

Mkt Value of Units for Sale 2,937 3,821 2,197 1,791 2,180 (-) Taxes (198) (258) (148) (121) (147) (-) Construction Obligations (790) (710) (329) (341) (986)

Book Value of Land 751 2,315 2,448 1,115 687 (-) Swaps booked in Advances (94) (540) (1,756) (453) (68) (-) Payables from land acqs. (312) (557) (395) (304) (378)

Other Assets 92 287 3 39 10 (-) Other liabilities (183) - - - -

Cash and Equivalents 1,231 1,892 986 1,014 1,284 (-) Corporate Debt (1,461) (2,527) (1,201) (1,131) (1,012) (-) SFH and other Project Finance (1,846) (2,259) (1,785) (461) (1,148)

(-) Minority Shareholders (62) (115) (399) (219) - (+) Invest. in Subsidiaries 194 134 15 - -

Liquidation Value 6,035 8,209 6,653 4,754 3,389

BV Adjusted 4,959 7,876 6,012 4,015 3,102 BV 3,772 6,123 4,384 2,919 2,563 Deferred Income 1,203 1,780 1,747 1,159 540

Deferred Revenues 3,429 5,149 5,594 2,810 2,478 Deferred Costs and Expenses (2,120) (3,022) (3,673) (1,462) (1,771) Taxes (over Sales and Income) (106) (348) (173) (190) (167)

Avg Stake 99% 98% 93% 95% 100%

P/LV 0.95 1.45 1.34 1.64 1.23 1.41 P/BVAdj 1.16 1.51 1.48 1.94 1.34 1.57 P/BV 1.53 1.94 2.03 2.67 1.62 2.07

Market Cap 5,763 11,881 8,913 7,795 4,157 # of shares 437 1,142 426 490 269 Closing price (November 12th) 13.2 10.4 20.9 15.9 15.5 *Source: Barclays Capital Res earch and Companies ' Information / (1) Excluding Gafis a

Blue Chips (3Q10)Avg(1)

1616

Trading Multiples

17

Proven Track Record of Execution

Gafisa’s Differentiation

National Footprint

Multifaceted Residential Products in All Income Segments

Strong Brand Recognition and Solid Reputation

Industry Leading Liquidity and Corporate Governance

APPENDIX A

Tenda and Alphaville

1919

Tenda: Differentiated Platform for the Affordable E ntry-Level SegmentThrough Tenda, Gafisa has a differentiated and deve loped platform to capture growth in the affordable entry-level segment

Standardized Construction ProcessSales

► Hybrid construction model with in-house and outsourced construction capabilities

► Standardized materials

► 4 project options in each production line

► Economies of Scale

Garden

Duo

Life

Tower

Centrally located and well diversified portfolio

► Well-trained and dedicated sales force helps clients with home purchasing and financing decisions

► Sales force located in areas with constant flow of people

► High variety of products and branch locations to best meet client needs

S

-80

-60

-40

-20

0

20

40

-6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Credito Associativo Plano Piloto

2020

Tenda: Blue-Print Mortgage (“Crédito Associativo”)The use of Crédito Associativo reduces the Working Capital requirement

Land

Acq

uisi

tion

Com

mer

cial

Lau

nch

Beg

inni

ng o

f co

nstr

uctio

n

End

of c

onst

ruct

ion

Key Delivery

No. of months

% C

ash

expo

sure

ove

r P

SV

With Crédito Associativo

there is little WC requirement

and the company cash flow

already moves from negative

to positive during the

construction period;

With a traditional financing

scheme, we have to use

project finance to cover the

negative WC, until the

delivery.Assumes that the land represented 10% of the PSV and was paid for in 6 installmentsCrédito Associativo is provided by Caixa Econômica Federal (CEF) to finance low-income projects/units.

Typical Project Cash Flow for low-income project wi th land acquired for cash

Financial Schemes Description

Plano Piloto (company finance/project Finance)

The developer finance all the construction cost and

transfer the customer to the bank only at the end of

construction

Plano Empresário (project Finance)Finances up to 80% of construction costs at lower rates

(SPBE resources)

Crédito Associativo (Blue-print mortgage)Company receives 100% of PSV during the construction

period (based on PoC)

Reduced Cycle – Tenda

Traditional Brick blocks Construction Method;

Use of Ceramic and Concrete Blocs;

High demand for finishing repairs;

Construction Cycle lasts 10-12 months;

Construction based on Aluminum Molds

High constructions efficiency avoiding excessive wastes;

Concrete walls done on site;

Construction Cycle lasts 4-5 months;

Effectiveness of the production process

Traditional Construction

Aluminum Molds Construction

1 2 3 4 5 6 7 8

Foundation

Building and Finishing

Title Process

Collection

Months

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Foundation

Building and Finishing

Title Process

Collection

Months

21

% Oct-07 Oct-08 Oct-09 Oct-10Consolidated INCC 5.15 11.13 2.84 6.66

Materials e Equipments 4.89 13.96 -0.93 5.06

Labor 5.44 7.96 7.31 8.41

22

Tenda: Valle Verde Cotia, SP

Aluminum Mold Construction Method

INCC Evolution (%) – Last 10 months

Labor costs always tend to surpass the other INCC i tems

111

237

312

420

549

2006 2007 2008 2009 9M10

140

238

300

377406

2006 2007 2008 2009 9M10

2323

► Partnership contracts via land swaps

► Construction only after pre-sales

► High sales velocity

► Alphaville Foundation enables sustainable integration with the surrounding communities

Alphaville Concept Steady Growth

Sustainable Business Model

Launches (R$ mm)

Pre-Sales (R$ mm) and VSO (%)

Residential Area

Leisure Area

Residential Area

Residential Area

Commercial Area

Commercial Area

Multi-family Areas

Alphaville Club

Alphaville: Differentiated Business for Residential Land Communities

n.a.

60%59%

59%49%

APPENDIX B

Real Estate Market Overview

25

Housing FinanceSystem (SFH) – FundingSources

Funding Sources

Registered Workers

Savings Accounts

TR+6.17%

Allocation of

Resources

FGTS (MCMV)TR + 3%

Central Bank Compulsory Deposits

20%(TR+6.2%).10%(Selic)

Distribution of

Resources

CEF Investments

in Infrastructure

Market

Borrowers

Companies

Compulsory Housing Credit

TR + 6.17%

Resources for Lending

SFHTR+

Companies

Private Individuals

Companies

Companies

8% of their Income

30%

Private Individuals

Private Individuals

41%43%

36% 37%40%

41%

36% 37% 36% 37%39% 39% 40%

(%)Var YoY

28 29 29 30 31 32 32 33 34 35 36 38 39

-

5

10

15

20

25

30

35

40

45

R$

Bil

lion

Scenario Funding Growth Savings Increase Available Credit (R$ bi) Year

1 60% 20% 262 2012

2 40% 10% 230 2013

3 40% 17% 331 2014

4 20% 0% 167 2015

26

Brazilian Savings & Loan System (SPBE)

Growth in Brazilian Savings LTM Monthly Disbursements by the SBPE

Brazilian savings are growing steadily, ensuring av ailable credit for the coming years

Housing Credit Sources guaranteed

while new sources are under development

Sources: Brazilian Central Bank and Banco Santander

15%16%

16% 17%18%

19% 19% 19%20% 20% 20% 20% 20%

(%)Var YoY

233 238 240

245 254 257 258 260 262 265

270 277 280

150

170

190

210

230

250

270

290

R$

Bil

lio

n

101%

83%

18% 13%3%

Denmark UK Chile Mexico Braz il

2727

In recent years, the credit supply for real estate financing has increased substantially with lower interest rates and longer tenors

Growing Credit Availability

Interest Rates vs. Housing Financing

Real Estate Financing – Amount Funded (R$ bn) Housing Financing vs. GDP 1

Source: Central Bank, IBGE and ABECIP1. Data from 2006. For Brazil, consider data from 2009

Brazil: high growth potential for home financing

A favorable growth trend for credit availability be gan in

2005, when the annual Selic was close to 20%;

In 2008 the Central Bank increased the Selic from

11.25% to 13.75% without any impact on home financi ng;

According to the Central Bank, the market is expect ing

a Selic of 10.75% by the end of 2010.

3 6 9 18 30 34

55

3 4 6 7

10 16

30

6 10 15 25

40 50

85

2004 2005 2006 2007 2008 2009 2010E

SBPE FGTS

0

20

40

60

80

100

120

140

160

0%

5%

10%

15%

20%

25%

30%

35%

Dec-02

Sep-03

Jul-04

Apr-05

Feb-06

Nov-06

Sep-07

Apr-08

Nov-08

Jun-09

Dec-09

Jul-10

Selic (%a.a.) Real Estate Financing (R$ billion)

Base 100 0,70%

-1,91% -3,95%

10,43%-5,79%

22,38% 121,86%

2004 2005 2006 2007 2008 2009 Jan-Jun/10

2010

Average Price Variat ion (YoY)

1 Bed 2 Bed 3 BedSP Real Average

Income

2005 -1,93% 13,30% -19,80% 0,70% 1,20%

2006 -12,83% -28,20% -8,40% -1,90% 5,10%

2007 7,70% 27,70% -0,60% -4,00% 1,80%

2008 4,63% 1,80% 1,10% 11,00% 2,40%

2009 2,50% 1,40% 11,60% -5,50% 3,20%

Jan-Jul/10 28,07% 26,60% 35,10% 22,50% 2,70%

Cumulate 26,4% 35,8% 11,3% 21,9% 17,5%

Real Price Variation for New Units - MRSP

Real Variation (2005-10): 22%

3 Bedrooms

Fonte: MCM Consultores – Região Metropolitana de São Paulo

In 5 years, real prices have shown a 26% raise in the

metropolitan area of São Paulo, mainly from small u nits;

This raise happened specially on the last 12 months , taking

benefit from the quick post-crisis recovery;

Despite the raise since 2005, this raise is still i n line with the

average real income raise.

28

-60%

-40%

-20%

0%

20%

40%

60%

80%

jan/06 jul/06 jan/07 jul/07 jan /08 jul/08 jan /09 jul/09 jan/10

Preços YoYPrices YOY

2929

Government programs were created to reduce the sign ificant housing deficit in the lower income segments

Government Programs – MCMV I

Simulation of Potential Impact on Market Size

Source: Market Reports

Highlights

► Financing for one million houses with up to R$23,000 in subsidies to families with income of up to 10x the monthly minimum wage (R$4,650)

► R$34 billion in subsidies (Federal Government, FGTS, BNDES)

► Financing of homes with a price range of R$80,000 to R$130,000

► Interest Rates ranging from TR+5% – TR+8%

► Homebuilders can finance 100% of the property value

► No down payment and no installments during the construction period (for families with income up to 3x the minimum wage)

Mortgage

Cost (TR+)

Monthly installments

Minimum monthly income

Equivalent of minimum wages

Market Size (millions of homes)

80,000

7%

665

2,661

6.4

13.4

64,000

5%

394

1,969

4.2

23.4

Before “Minha Casa, Minha Vida” Program

Additional market of approx. 10 million houses

Average Unit Price: R$80k

Subsidy 0 16,000

3030

Government renewed MCMV program, giving more visibi lity to the Real Estate sector:

Government Programs – MCMV II

Income distribution

Source: CS, UBS, CEF, Market reports

Highlights

► Financing for two million houses up to 2014;

► R$72 billion in subsidies;

► Continued growth for the next 4 years already committed;

► General details to come up to the beginning of 2011;

► It confirms the government commitment to provide financing for entry level homebuyers.

40%60% 60%

40%

29% 30%

20%11% 10%

MCMV I - target MCMV I - up to March

1st/2010

MCMV II - target

0-3 MW 3-6 MW 6-10 MW

2 million

► MCMV II income distribution followed the same distribution of the contracted units from MCMV I:

# of units: 1 million

3131

Efficiency Gains under “MCMV” ProgramTenda contracted 22,914 units through September and has close to 8,000 units under CEF analysis

Minimum Wages Caixa Econômica Fereral(1)

0 - 3 MW 313.087

3- 10 MW 368.622

TOTAL 681.709

(1) Until October 8th

, 2010 for CEF.

Period To be contracted(2)

Contracted % MCMV TOTAL

2009 - 6.102 74% 6.102

1Q10 - 2.788 88% 2.788

2Q10 - 6.239 78% 6.239

3Q10 7.785 79% 7.785

4Q10 7.949 7.949

TOTAL 7.949 22.914 78% 30.863

(2) Units contracted in 2010 and already filed with CEF through Sep 2010.

Period Units % MCMV

2009 5.114 48%

1Q10 1.898 81%

2Q10 2.515 89%

3Q10 2.381 85%

TOTAL 11.908 69%

Total Contracted Units under "MCMV" I

Pipeline

Transferred

88 94 17

177 176 145 187

276

409

29 38

39

47 92 167

143

118 132

55

223 267

312

2003 2004 2005 2006 2007 2008 2009 Sep/2010

Caixa - MCMV Market Total

8 30

130

53 20 52 12 22

42

33 96 57

8

8

17

10

33

1

27

60

188

96

149

110

2Q09 3Q09 4Q09 1Q10 2Q10 Jul-Aug-10

0 a 3 SM 3 a 6 SM 6 a 10 SM

5 6 913 15

23

47 48

251326

425503

443515

897

2003 2004 2005 2006 2007 2008 2009 Up to Sep 10

Financing (R$ bn) Financing Amount ('000)

Source: Caixa Econômica Federal

26191

394481

596

25

95

149

193

266

24

78

114

140

186

75

364

656

814

1.048

Jun-09 Sep-09 Dec-09 Apr-10 Sep-10

0 a 3 MW 3 a 6 MW 6 a 10 MW

3232

CEF Real Estate Financing

Housing Financing Contracts (R$ bn)

MCMV Contracts Units (‘000) Inventory of Received Proposals (‘000 units)

Caixa Econômica Federal has reached historical record s of real estate financing, and is responsible for 73% of the market contracts

CEF vs. Market – Financing of New Units (‘000 units)

759

495

1,868

3,219

3,966

5,602Projects

606

3333

APPENDIX C

Operating and Financial Highlights

34

Main Financial and Operational Highlights

Operating and Financial Highlights (R$ million) 3Q1 0 3Q093Q10 vs. 3Q09 (%)

9M10 9M099M10 vs. 9M09 (%)

Launches 1.237 514 140% 2.949 1.301 127%Launches, units 6.210 3.333 86% 14.491 6.552 121%Contracted sales 1.018 800 27,3% 2.766 2.194 26,0%Contracted sales, units 5.082 5.545 -8% 14.811 15.540 -5%Contracted sales from Launches 579 288 101% 1.650 629 163%Contracted sales from Launches - % 46,8% 56,0% -922 bps 56,0% 48,3% 764 bps

Net revenues 957 877 9% 2.792 2.125 31%Adjusted Gross profit (w/o capitalized interest) 310 277 12% 856 640 34%Adjusted Gross margin (w/o capitalized interest) 32,3% 31,6% 77 bps 30,7% 30,1% 53 bps

Adjusted EBITDA (1) 197 174 13% 550 362 52%

Adjusted EBITDA margin (1) 20,6% 19,8% 77 bps 19,7% 17,0% 265 bps

Adjusted Net profit (2) 133 89 50% 326 227 44%

Adjusted Net margin (2) 13,9% 10,1% 378 bps 11,7% 10,7% 102 bpsNet profit 117 64 83% 279 158 76%EPS (R$/share) 0,27 0,24 11% 0,65 0,61 7%Number of shares ('000 final) 430.910 261.017 65% 430.910 261.017 65%Revenues to be recognized 3.429 2.905 18% 3.429 2.905 18%

REF margin (3) 38,2% 35,0% 322 bps 38,2% 35,0% 322 bps

Net debt and Investor obligations 2.076 1.732 20% 2.076 1.732 20%Cash and availabilities 1.231 1.100 12% 1.231 1.100 12%(Net debt + Obligations) / (Equity + Minorities) 55,6% 74,1% -1850 bps 55,6% 74,1% -1850 bps(1) Adjusted for stock option plans expenses (non-cash) and Tenda goodw ill net of provisions.

35

Ratings and Balance Sheet

Perspective

Last update

Stable

September/2010

Stable

September/2010

FITCH Moody’sCorporate RatingNational Scale

Rating A- A1

Stable

October/2010

S&P

A

3Q10 3Q09 2Q10

Current Liabilit ies

Loans and f inanc ing 789.331 570.307 825.382

Debentures 214.561 80.781 123.608

Obligations for purchase of land and advances from clients 460.470 488.935 466.078

Materials and serv ice suppliers 292.444 194.302 244.545

Taxes and contributions 234.394 132.216 154.983

prof it sharing 69.594 61.206 73.057

Provis ion for contingencies 8.001 10.512 6.312

Dividends 52.287 26.106 52.287

Deferred taxes - 52.375 - Other 171.417 181.312 217.569

2.292.499 1.798.052 2.163.821

Long-te rm Liabilit ies

Loans and f inanc ings 371.843 636.639 352.181

Debentures 1.551.407 1.244.000 1.748.000land 177.412 147.168 176.084

Deferred taxes 483.373 322.870 484.453

Provis ion for contingencies 51.185 59.509 52.670

Other 568.945 362.843 521.211

Deferred income on acquis ition 6.757 12.499 8.045

Unearned income f rom partial sale of investment0 11.594 0

3.210.922 2.797.122 3.342.644

Minor ity Shareholde rs 51.565 552.889 46.316

Shareholde rs ' Equity

Capital 2.729.187 1.233.897 2.712.899

Treasury shares (1.731) (18.050) (1.731)

Capital reserves 251.489 190.585 290.507

Revenue reserves 422.373 218.827 381.651losses 278.687 158.217 162.087

3.680.005 1.783.476 3.545.4130 0 0

Liabilities and Shareholde rs ' Equity9.234.991 6.931.539 9.098.194

LIABILITIES AND SHAREHOLDERS' EQUITYR$ 000' 3Q10 3Q09 2Q10

ASSETS

Current Asse ts

Cash and cash equivalents 570.718 948.350 1.136.765Restricted cash in guarantee to loans and resctricted credits 660.425 151.337 669.619

Receivables f rom clients 2.727.930 1.718.110 2.470.944

Properties for sale 1.447.266 1.376.236 1.446.760

Other accounts receivable 155.795 93.722 141.740

Deferred selling expenses 38.028 7.205 20.592

Deferred taxes - 13.099 - Prepaid expenses 16.423 13.522 15.283

5.616.585 4.321.581 5.901.703

Long-te rm Asse ts

Receivables f rom clients 2.411.275 1.662.300 2.075.161

Properties for sale 388.649 386.196 407.792

Deferred taxes 367.788 250.846 311.693Other 177.182 52.140 131.035

3.344.894 2.351.482 2.925.681

Investments 194.207 195.088 194.871

Property, plant and equipment 63.825 53.698 59.659Intangible assets 15.480 9.690 16.280

273.512 258.476 270.810

Total Asse ts 9.234.991 6.931.539 9.098.194

757

2,9222,236 2,075

3Q10 4Q10E 1Q11E 2Q11E

Bank Mortgage

Why Cash Burn should change to positive in 2011?

Cash burn continue high mainly due to Tenda’s units launched and sold mainly in 2007 and 2008 that are being built using it’s own capital, instead of the mechanism of Blue-Print mortgages (Crédito Associativo);

Going forward, Tenda is gradually increasing the use of Associative Credit over current sales (that already reached 62% in the 3Q10), contributing to reduce the Working Capital needs;

From now until June/11, Tenda will transfer approximately 7,000 units that did not contracted Blue-Print mortgage, meaning that the invested money will return to Company’s cash.

Tenda’s Transferred of Concluded Units to CEF - Pipeline

22%38%

51%62%

100%

78%62%

49%38%

2007 2008 2009 9M10 3Q10

Blue-Print Mortg. (Crédito Associativo) Tenda's Financing/Project Finance

Tenda is delivering units that did not contracted Blue-Print mortgage in

the past.

Tenda’s unit sales by type of finance

9,505 11,576 15,871 9,733 3,039

36

16.9%15.2%

17.3%

25.4%

18.9%

15.7%

12.9%14.9%

12.0% 12.5%11.8%

SG&A Expenses / Net Revenue

SG&A (Synergies)

60% Acquisition of Tenda

100% Incorporation of

Tenda

37

10.6%

8.4% 8.0%

13.5%

10.3%

8.4%

6.6% 6.7% 6.3% 5.9% 6.2%

G&A Expenses / Net Revenue

3Q10 3Q09 2Q10 3Q10 x 3Q09 3Q10 x 2Q10

Consolidated Selling expenses 53,887 55,556 61,140 -3% -12%G&A expenses 59,317 57,601 55,125 3% 8%SG&A 113,204 113,157 116,265 0% -3%Selling expenses / Launches 4.4% 10.8% 6.1% -644 bps -171 bpsG&A expenses / Launches 4.8% 11.2% 5.5% -640 bps -67 bpsSG&A / Launches 9.2% 22.0% 11.5% -1285 bps -238 bpsSelling expenses / Sales 5.3% 6.9% 6.9% -165 bps -158 bpsG&A expenses / Sales 5.8% 7.2% 6.2% -137 bps -37 bpsSG&A / Sales 11.1% 14.1% 13.1% -303 bps -195 bpsSelling expenses / Net revenue 5.6% 6.3% 6.6% -70 bps -96 bpsG&A expenses / Net revenue 6.2% 6.6% 5.9% -37 bps 25 bpsSG&A / Net revenue 11.8% 12.9% 12.5% -107 bps -71 bps

(R$'000)

A Typical Gafisa Project

38

Sales 30% 60% 70% 80% 87% 94% 100%

% Costs - 2,5% 15% 35% 65% 85% 100%

Revenues - 1,5% 10,5% 28% 57% 80% 100%

Collections (cumulative) 1% 4% 9% 11% 18% 25% 85% 100%

Launch Start Construction

Licensing: 6 to 9 months

End of

installments

0M 6M 12M 18M 24M 30M 36MUp to

100M

Delivery/

Mortgage