Corporate Presentation 3Q14

1. Corporate Presentation
Bradesco's 4th CEO Forum – November, 2014

2. History and Business Model

3. 3
More Than 30 Years of History
48%
Controlling Shareholders¹ Others
52%
155,298,749 ordinary shares
1. Participation held directly and indirectly by the Controlling Shareholder
2. Data: 10/02/2014
 Industrial projects acting
as contractor to third
parties
 Important geographic
expansion: Brasília, Rio de
Janeiro and Campinas
 Development of projects
focused on the low-income
segment
 Beginning of large scale
projects for the low-income
segment
 Consolidation of a leading
position in Manaus and
Brasilia
 Operations expansion to
PA, RO and ES
IPO  36% annual growth
in PSV launched
(CAGR)
 69% annual growth
in net revenue
(CAGR)
 Follow-on
 MCMV 2
 Establishment of
own sales team
1981 - 2005 2006-2007 2008 2009 2010-2011 2012
 Record net
revenue of R$ 1.4
Billion, a 28% YoY
growth
 More than R$
1 billion on
projects delivered
during 2012
 Increasing stock
liquidity
 The most relevant
player in the MCMV
2nd phase Level 1
 Focus on Cash
Generation and
Construction
Service business
2013
2%
1%
12%
16%
45%
24%
Others
Asian
South American
Europe
North American
Brazil
Free Floating (others 52%)²

4. Unique Footprint
 Strong footprint in markets with high growth potential, low
competition and high barriers to entry
Low competition in
profitable markets
Track Record in
Operating in the low-
Income segment
 Over 30 years of experience
 Solid track record in MCMV Level 1 projects
Low equity commitment,
solid margins and high
ROIC
Focus on Large
Scale Projects
Verticalized
Business Model
 Strong expertise in large scale ventures
 Own work force
 Performance-based compensation
 Standardized and industrialized production on-site
Large scale operations in
the low-income segments,
with strict cost control and
high margins
4
Direcional: A Unique Business Model
The most profitable
and efficient player in
the low-income sector
‘’’’
 High efficiency and profitability
ROE¹ among the highest in the sector
LTM ROE¹: 18%
1. LTM ROE (2013): Net Income in the Last Twelve Months / Average Shareholders’ Equity in the Last Twelve Months (net of non-controlling interest in silent partnerships and SPEs)
The best low-income player in Brazil
Industrialization
 Aluminum panels and concrete walls technology
 45 days to develop a five floors building
1
2
3
5
4

5. Focus on the Low-Income Segment

6. Launched - Construction Service
(PSV R$ million)
CAGR -5%
9M14
303
2013
523
2012
698
2011
924
2010
686
2009
630
Launched - Development
(PSV R$ million)
CAGR +91%
9M14
1,004
2013
2,041
2012
1,647
2011
522
2010
380
2009
154
Construction Service Development
MCMV Level 1
+ Little or no cash burn
+ Higher ROE
+ Lower risk
+ Non-cyclical market
- Lower Margin
Development
- Higher cash burn
- Lower ROE
- Higher risk
- Cyclical market
+ Higher Margin
Total Launched – Track Record
(PSV R$ million)
77%80%
70%
36%36%
20%
1,306
9M14
303
1,004
2013
2,565
523
2,041
2012
2,345
698
1,647
2011
1,447
924
522
2010
1,067
686
380
2009
783
630
154
Development
Construction Service
% Construction Service
The Growth Coming From The Construction Service
(MCMV Level 1)
6

7. Total Hired % Balance Delivered % %
(A) (B) (C) (C/A) (C/B)
Level 1 2.000.000 1.619.400 81% 380.600 552.644 28% 34%
Level 2 1.200.000 1.441.404 100% - 1.040.570 87% 72%
Level 3 400.000 438.836 100% - 142.391 36% 32%
Total 3.600.000 3.499.640 380.600 1.735.605
Results MCMV (Phase 1 & 2) - Up - to Date
MCMV Focus Moving Towards Level 1
Program Challenges ("Ministério das Cidades")
• Hire 381k units in 2H14; (ii) Quality assurance and delivery; (iii) Investments on projects sustainability; (iv) Improvements in the
construction process
Source : Ministério do Planejamento, Orçamento e Gestão 07/2014
Lauch Date Jul/2011 Aug/2012
Level 1 R$48 k - R$65 k R$57 k - R$76 k 17%
Level 2 and 3 R$65 k - R$170 k R$76 k - R$190 k 12%
MCMV2
MCMV2
(after review)
Unit Price D%
+300%
MCMV2
1,600,000
800,000
200,000
MCMV1
1,000,000
400,000
400,000
200,000
2,600,000
Level 1
Level 2
Level 3
 The Government increased the price cap of 17% for the units within
the first level of the MCMV Program.
4x
2x
1x
• Brazil’s Federal Government has already shown that its focusing the Level 1 of MCMV, where the BZ housing deficit is heavily
concentrated.
• Such focus is clear when looking the breakdown of the Level 1 from MCMV 1 compared to MCVM 2 and its subsequent update.
7

8. 8
MCMV Level 1 vs Development: Net FCF with no Sales
Cancellations
Cash flow (traditional project vs MCMV Level 1 project)
-20%
-10%
0%
10%
20%
0Q-1Q 10Q9Q8Q7Q6Q5Q4Q3Q2Q1Q-2Q-3Q-4Q
Traditional Development
MCMV Level 1 MCMV Level 1 Project Construction
• 100% of units sold to the Federal Government: No delinquency and sales cancelations from this segment, benefiting consolidated figures
• The Fist range of MCMV implies almost no working capital needs.
Land
acquisition Comercial
launch
End of
construction
Hired to
Traditional Project Construction
Cash Exposure
MCMV Level 1
Development

9. 9
MCMV: Risk of Discontinuation?
Even considering a potential reduction in the MCMV Level 1 program with a change in political parties, there should be little effect on Direcional.
There are few companies that can deliver high volumes of construction in MCMV Level 1:
MCMV Level 1: 34% of units launched in MCMV Level 1 were delivered
100% 81%
100%
100%
72%
34%
Contracted
100%
100%
Delivered
32%
Program
MCMV Program Phase 1 & 2: Status
(% of Units)
Low Share: Direcional represents 5% of MCMV Level 1 as a whole
Opportunity to increase its share
+500 bps
Source : Ministério do Planejamento, Orçamento e Gestão 07/2014
Level 3
Level 2
Level 1
Level 1 Contracted Units Direcional Share %
MCMV1 & 2 1.619.400 84.065 5%
MCMV1 482.741 7.391 2%
MCMV2 1.136.659 76.674 7%

10. Very Low Income Projects:
 # of projects: 37
# of Units: 88,705
Total PSV: R$ 5,594.8 MN
Average PSV: R$ 151.2 MN
Average Units: 2,397
Direcional’s Contracted MCMV Level 1
1st Phase MCMV 2nd Phase MCMV
 # of projects: 3
 # of Units: 7,391
 Total PSV: R$ 380.3 million
 # of projects: 34
 # of Units: 81,314
 Total PSV: R$ 5,214.7 million
+
Direcional`s Contracted MCMV – Level 1
(PSV million)
Direcional`s Contracted MCMV – Level 1
(Units)
+437%
9M14
1,004
2013
2,041
2012
1,647
2011
522
2010
380
+365%
9M14
14,836
2013
34,372
2012
23,234
2011
8,872
2010
7,391
10

11. Focus on Industrialization

12. Focus on Performance
5%6% 8% 3%
2Q14
88%
8%
4%
1Q14
88%
8%
4%
4Q13
85%
10%
3Q13
83%
11%
2Q13
78%
16%
6%
1Q13
75%
3Q14
89%
18%
7%
4Q12
70%
23%
7%
3Q12
60%
31%
9%
2Q12
56%
36%
9%
1Q12
50%
41%
8%
Units Under Construction by Construction Method
(% of Units)
1 Aluminum mold and concrete walls method
Industrial Construction¹Concrete BlocksConventional Structure (Concrete Pillars)
12
3Q14 3Q13 D %
Units Under Construction 79.163 68.216 16%
% of Industrialization (# of units) 89% 83% 6 p.p.
Construction Sites 61 59 3%
Average # of Units by Construction Sites 1.298 1.156 12%
# of Cities 19 15 27%

13. Construction Technology
45 days to develop 2 buildings with 5 floors and 4 apartments per floor
Video: http://www.direcional.com.br/ri
Aluminum Panels and Concrete Walls
13

14. Construction Inflation (INCC) Track Record
Brazilian construction cost index, base 100 = Jan/2003
100
110
120
130
140
150
160
170
180
190
200
210
220
230
240
250
260
jan/03 jan/04 jan/05 jan/06 jan/07 jan/08 jan/09 jan/10 jan/11 jan/12 jan/13
Labor
INCC
(Aggregated Index)
Materials
Source: BACEN and IBGE
14

15. Operating and Financial Highlights

16. 16
Launches
Launches
(PSV - R$ million)
72231
1,004
1,306
+32%
-21%
9M14
303
9M13
1,646
1,311
335
3Q14
304
232
2Q143Q13
780
504
276
MCMV Level 1
Development
 PSV launched in 3Q14 totaled R$ 304 million, attaining R$ 1.3 billion in 9M14
 The Company launched three projects under the MCMV Level 1 in 3Q14, totaling a PSV of R$ 232
million
 77% of the launches were related to MCMV level 1 projects
7%
8%
5%
Upper-Middle
Medium
Low-Income
RET13%
MCMV Level 1 77%
Launches by Economic Segment – 9M14
(% PSV)

17. 17
Contracted Net Sales
Contracted Net Sales
(PSV - R$ million)
63126
+134%
-24%
9M14
1,304
1,004
300
9M13
1,715
1,311
404
3Q14
296
232
2Q143Q13
642
504
138
MCMV Level 1
Development
 Net sales reached R$ 296 in 3Q14, attaining R$ 1.3 billion in 9M14
 Net Sales were equivalent to the volume of launches in 9M14
 VSO reached 63% in 9M14
9%
6%
Commercial
1%
Upper-Middle
Medium
Low-Income
4%
RET13%
MCMV Level 1 77%
Sales by Economic Segment - 9M14
(% PSV)

18. 18
Inventory
Inventory Track Record
(R$ million)
Finished Units
23%
<2012
24%
2012
23%
2013
7%2014
23%
46%
Midwest 14%
North 40%
Southeast
Inventory by Region
(% PSV)
Inventory by Launch Period
(% PSV)
813
+12.1%
6%
3Q14
630
183
2Q14
765
596
169
4Q13
725
571
154
Under Construction
Finished Units
 By the end of 3Q14, total inventory summed up R$ 813 million
 46% of the inventory is located in the Southeast region

19. 19
Deliveries
Commercial
13%
MCMV Level 1
53%
Medium
21%
Low-Income
13%
Upper-Middle1%
Deliveries by Region and Economic Segment
(Over the past 12 months: % PSV)
Northeast5%
Midwest
11%
North
47%
Southeast
37%
3Q14
LTM
1,526
721
805
2Q14
LTM
1,806
1,046
760
1Q14
LTM
1,676
1,001
674
4Q13
LTM
1,237
839
398
3Q13
LTM
1,020
905
115
2Q13
LTM
1,029
713
316
Deliveries – Track Record
(Over the past 12 months: R$ million)
Development
MCMV Level 1
Deliveries
(VGV-R$ million)
+40%
9M14
1,014
568
447
9M13
726
686
40
3Q14
224
155
69
2Q14
189
87
102
3Q13
502
479
23
MCMV Level 1
Development
 In 9M14, the Company delivered PSV of R$ 1.0
billion, representing a growth of 40% in relation to
9M13
 Deliveries in the last 12 months (LTM) totaled R$ 1.5
billion. MCMV Level 1 projects represented 53% of PSV
delivered during the period

20. Land Bank
 61% are large scale projects (over 1,000 units)
 55% are eligible for the MCMV Program
 83% were acquired by physical or financial Swap
 Average acquisition price of 12% over PSV
Land Bank by Segment
(% PSV)
Land Bank Track Record in 9M14
(R$ million in PSV)
Land Bank by Region
(% PSV)
Type of Payment
(% PSV)
Swap 83% Cash17%
9%
Low-Income
26%
Upper-Middle
12%
Medium
52%
Commercial 19
R$ 8.5 Billion
52,680 units
6
Review of
Assumptions
/ Traded and
Cancellation
Launches 9M14
8,524
303
Acquired
Land Bank
1,451
2013
7,382
ES
2%
AM
9%
MG
45%
RO
1%
SP
5%
PA
7%
DF
16%GO
1%
RJ
14%

21. 66%
47%
31%24%
14%
9M14
878
2013
836
2012
457
2011
269
2010
117
% of Gross Revenue
Revenue from Services
(R$ million)
Cash Generation with Growth
1 - Cash Burn: measured by the change in net debt adjusted for dividend payments and shares buyback
2 – Numbers prior to 2012 are not adjusted in accordance with the new consolidation accounting practices (IFRS 11).
9M14
204
2013
76
2012
-183
2011
-176
2010
-283
2009
-95
Cash Burn¹,²
(R$ million)
Net Revenues - Track Record²
(R$ million)
CAGR +47%
9M14
1,284
2013
1,744
2012
1,449
2011
1,072
2010
782
2009
378
Financing Pass-through (“Repasses”)
(R$ million)
449
+39%
9M14
146
303
2013
633
273
360
2012
455
233
222
"Associativo"
SFH
Service
85%
Development
15%
Revenue to be Recognized
(% Total)
Services
R$ 3,7 Billion
Development
20

22. Financial Results
1. Adjusted for (non-cash) expenses with the stock option program
Adjusted¹ G&A
(R$ million)
6.5%
9M13
78
6.0%
3Q14
28
6.0%
2Q14
26
6.1%
3Q13
28
6.3%
+7%
+8%
9M14
84
% Net revenue
Adjusted¹ G&A
Selling Expenses
(R$ million)
10 14
3.4%
2Q143Q13
14
2.7%2.2%
9M13
3.0%
3Q14
27
39
9M14
-3%
+45%
1.9%
% Net revenue Selling Expenses
561
3,286
2,725
556
3,189
+14%
3Q143Q13
3,745
Development
MCMV Level 1
Revenues to be Recognized
(R$ million)
Gross Revenue
(R$ million)
1,335
598
474
3Q142Q14
354
459
+5%
9M14
737
+2% 878120
1,337
9M13
454
274
179
206
3Q13
258
464
MCMV Level 1
Development
21

23. 23
Capital Structure
Capital Structure
(R$ million)
394
Net Debt
24% 18% 11%
Net Debt/Equity
314 201
CRI
13%
Working Capital
1%
SFH
60%
FINAME and Leasing
5%
Debentures21%
Loans and Financing
(% of Debt)
3Q14
718
919
2Q14
643
956
3Q13
519
913
Cash
Debt
1. Cash flow generation: net debt variation net of dividends and share buyback programs .
3Q14
LTM
250
2Q14
LTM
205
1Q14
LTM
189
4Q13
LTM
76
3Q13
LTM
26
2Q13
LTM
-88
1Q13
LTM
-138
4Q12
LTM
-183
3Q12
LTM
-206
Cash Flow Generation (Cash Burn)¹ - Track Record
(Over the past 12 months : R$ million)
Debt – 3Q14
(R$ million)
Net Debt
Without SFH
351
Net Debt
201
Cash and
Cash
Equivalent
718
Debt
919
SFH
552
367

24. Benchmarking 2013 – Outstanding Results
Direcional: Adjusted for non-cash expenses (Stock-Options Program)
BISA3; -10%
CYRE3; 13%
EVEN3; 15%
EZTC3; 30%
GFSA3; 1%
HBOR3; 26%
MRVE3; 11%
PDGR3; -6%
DIRR3 16%
RDNI3; 12%
RSID3; 2%
TCSA3; 16%
VIVR3; -63%
SETOR; 7%
TRIS3; 6%
22%
27%
32%
37%
42%
47%
52%
-55% -35% -15% 5% 25% 45%
NetRevenueLTM/TotalAssets
Net Margin¹
Slow turnover and margin above averageSlow turnover and margin below average
Fast turnover and margin below average Fast turnover and margin above average
Company; ROE LTM
Size: Leverage (Assets/Equity)
Color: Average Prince - Launched Units Last 24 months
Low - up to R$ 200k per unit
Medium - between R$ 200k and R$ 400k per unit
High - above R$ 400k per unit
Setor
18%

25. 25
Contacts
Carlos Wollenweber
CFO | IR Officer
Paulo Sousa
IR Coordinator
Luiz Felipe Almeida
IR Analyst
www.direcional.com.br
ri@direcional.com.br
(55 31) 3214-6200
(55 31) 3214-6450