Gafisa had a strong year in 2007, with several highlights: 1) It acquired AlphaVille Urbanismo, Brazil's largest urban developer, expanding its presence to 35 new cities. 2) It listed on the New York Stock Exchange, becoming the only Brazilian residential developer listed in the US. 3) It acquired 70% of Cipesa, allowing it to operate in the states of Alagoas and Sergipe. 4) It launched several new initiatives like Bairro Novo, Fit Residencial, and a new mortgage product.

1. ANNUAL REPORT 2007

2. PROFILE
BASED IN SÃO PAULO, Based in São Paulo, Gafisa S.A. is one of the leading
GAFISA S.A. IS ONE OF THE condominium developers in Brazil, and is considered a
LEADING CONDOMINIUM benchmark for quality, innovation, efficiency and
professionalism in the domestic market. Since its inception in
DEVELOPERS IN BRAZIL, AND
1954, Gafisa has completed approximately 950 developments,
IS CONSIDERED A
representing nearly 40 million square meters of completed
BENCHMARK FOR QUALITY,
construction projects.
INNOVATION, EFFICIENCY As of December 31, 2007, the Company was operating in 47
AND PROFESSIONALISM IN cities throughout 17 of Brazil’s 26 states, representing 92.3%
THE DOMESTIC MARKET. of the country’s population and 90.8% of its GDP, according to
the Brazilian Geographical and Statistical Institute (IBGE).
The Company is able to identify and meet the needs of each
targeted residential market segment through a blend of
innovation, experience, agility, planning and construction
capacity. In order to ensure the needs of each market are
accurately met, management develops its residential projects
under five individual brands: Gafisa, AlphaVille, Fit
Residencial, Bairro Novo and Cipesa, to allow flexibility in
tailoring each strategy to its respective segment. Property
sales also have the additional support of the Gafisa Vendas, a
dedicated sales group subsidiary.

3. MAIN INDICATORS
2004 2005 2006 2007
Sales
Launches (million R$) 207 652 1,005 2,236
Launches (million R$) (including minority shareholdings) 313 682 1,234 2,919
Launches (units) (including minority shareholdings) 1,132 2,466 3,755 14,236
Average price of launches (R$/m²) (100% excluding allotments) 2,725 2,878 3,045 2,835
Sales from launches in year (million R$) (% Gafisa) 84 295 555 1,139
Sales from launches in previous years (million R$) (% Gafisa) 170 155 440 487
Contracted sales (million R$) (% Gafisa) 254 450 995 1,627
Contracted sales (million R$) (including minority shareholdings) 375 528 1,162 2,053
Contracted sales (units) (including minority shareholdings) 1,192 1,994 3,391 8,670
Results (million R$)
Gross revenue 439 481 697 1,218
Net revenue 465 457 664 1,172
Gross profit 124 139 198 375
EBITDA 66 59 98 184
Adjusted net profit (1) 20 31 76 143
Sales to be recognized 437 436 795 1,527
Backlog of results to be recognized 123 169 298 583
Margins (%)
Gross margin 26.7% 30.4% 29.8% 32.0%
EBITDA margin 14.2% 12.9% 14.8% 15.7%
Adjusted net margin (1) 4.3% 6.8% 11.4% 12.2%
Backlog margin 28.1% 38.8% 37.5% 38.2%
Shares
Profit (loss) per share (R$) 0.38 0.39 0.76 1.15
Market value (billion R$) - - 3.1 4.2
Total dividends (million R$) - - 11 27
Financial (million R$)
Total assets 782 945 1,494 2,950
Net equity 148 270 814 1,531
Current liquidity (current assets/liabilities) 1.51 2.63 3.35 3.40
Gross debt 152 317 295 689
Net debt 106 183 29 175
Net debt/net equity 71.6% 67.7% 3.6% 11.4%
Operational
Land Bank (Potential Sales Value – million R$) 1,789 1,755 3,047 10,195
Number of direct employees 677 495 683 1,197
Note (1): Adjusted for IPO and Follow-on expenses

4. MAP OF OPERATIONS
(December 31, 2007)

5. INDEX
3 TIMELINE
4 VISION AND VALUES
7 HIGHLIGHTS OF 2007
8 MESSAGE FROM THE MANAGEMENT
11 STRUCTURE AND BUSINESS MODEL
14 STRATEGY
16 COMPETITIVE ADVANTAGES
19 CORPORATE GOVERNANCE
24 THE SECTOR IN 2007
32 ANALYSIS OF CONSOLIDATED RESULTS
38 STOCK MARKET
40 RISK MANAGEMENT
45 MANAGEMENT OF PEOPLE
48 CUSTOMER RELATIONS
50 SUPPLIER RELATIONS
53 SOCIO-ENVIRONMENTAL ACTIONS
58 CORPORATE INFORMATION
61 FINANCIAL STATEMENTS

6. Gafisa S.A. 100% 60% 100% 50% 70% 100%
holdings
Characteristics One of the largest Brazil’s largest Developer of Developer Developer Sales Company for
residential high-end residential of planned operating in the products
developers in condominium condominiums for neighboorhoods states of Alagoas launched under
Brazil developer the 5-20 minimum over 1000 units in and Sergipe the brands of
wage population metropolitan areas Gafisa, Cipesa, Fit
segment and outskirts, for and Bairro Novo ,
the 3-10 minimum operating initially
wage population in São Paulo and
segment Rio de Janeiro
metropolitan areas
Segment Mid, mid high Mid high Affordable Low affordable Mid, mid high
and high and high entry level entry level and high
Model Vertical Horizontal Vertical Vertical-horizontal Vertical
Locations Metropolitan Outside Metropolitan areas Metropolitan areas Metropolitan areas
areas Metropolitan areas and outskirts and outskirts
Projects Unique Unique Standardized Standardized Unique
Financing Banks Own (CEF) Caixa (CEF) Caixa Banks
Econômica and Econômica and
Banks Banks
Unit price Over R$ 70,000 to R$ 80,000 to To R$ 100,000 Over
R$ 200,000 R$ 500,000 R$ 200,000 R$ 200,000
In 2007, Gafisa’s net revenues reached R$1.2 billion, an increase of 77% from R$664 million in 2006. This increase reflects the Company’s
focus on growth and profitability as well as Brazil’s favorable environment for housing construction. According to data from the Civil
Construction Industry Organization (SINDUSCON-SP) civil construction was responsible for 5.5% of GDP for the year.
In March 2007, Gafisa began trading on the New York Stock Exchange and enhanced its corporate governance standards to meet the
requirements of the Sarbanes Oxley Act. This made Gafisa the first and only Brazilian residential property developer to be listed on a United
States exchange. At the end of 2007, Gafisa S.A. had an 84% free float, which is the highest level of public float among the real estate sector
stocks traded on the São Paulo Stock Exchange (BOVESPA). The Company is also a member of the BOVESPA Novo Mercado, a listing segment
on the BOVESPA exchange designed for companies who voluntarily choose to abide by additional corporate governance practices in addition
to those required by Brazilian law and the CVM.
2

7. TIMELINE
Gafisa's first branch in São Paulo
1954 • Company is founded and commences operations in Rio de Janeiro under the name of
Gomes de Almeida Fernandes Ltda. In 1964 commences operations in São Paulo.
1988 • Name changed to Gafisa Imobiliária.
1997 • GP Investimentos acquires shares in the Company. Name changed to Gafisa S.A.
2004 •
•
GP Investimentos becomes a controlling shareholder of Gafisa S.A.
Company implements its expansion strategy, begins to enter markets beyond the
Rio–São Paulo axis.
2005 • Equity International acquires approximately 32% of Gafisa S.A. stock
2006 • February: IPO in Brazil, the stock is listed on the São Paulo Stock Exchange
Novo Mercado and has a 47% public float.
• Acquisition of AlphaVille. (Transaction completed in early 2007)
• Creation of Gafisa Vendas, in São Paulo, Gafisa’s own sales team.
2007 • February: Joint venture formed with Odebrecht Empreendimentos
Imobiliários Ltda. to establish Bairro Novo.
• March: Shares listed on the New York Stock Exchange.
• March: Creation of Fit Residencial.
• June: GP Investments sells its 7.1% holding in Gafisa S.A.
• October: Acquisition of 70% of Cipesa, responsible for Gafisa’s operations
in the states of Alagoas and Sergipe.
ANNUAL REPORT 2007
Timeline | 3

8. VISION
GAFISA STRIVES TO BE BRAZIL’S PREMIER RESIDENTIAL
CONDOMINIUM, URBAN DEVELOPMENT AND
CONSTRUCTION COMPANY BY PROVIDING THE HIGHEST
RETURNS POSSIBLE FOR ITS INVESTORS AND LEADING ALL
OTHER COMPANIES IN THE SECTOR IN SALES. WE WILL
ACHIEVE THIS THROUGH: A COMMITTED AND RESULTS-
FOCUSED STAFF WHO SHARE A DESIRE TO ACHIEVE
EXCELLENCE; ACCURATELY IDENTIFYING MARKET NEEDS;
EFFICIENT AND TIMELY DELIVERY OF PRODUCTS;
EXEMPLARY PRODUCTS THAT STAND OUT IN ALL
RESIDENTIAL MARKET SEGMENTS.
VALUES
ETHICS – MAINTAIN THE HIGHEST ETHICAL AND MORAL
STANDARDS.
PEOPLE – CREATE A POSITIVE AND CONSTRUCTIVE
WORK ENVIRONMENT TO ATTRACT AND MAINTAIN
THE MOST QUALIFIED STAFF.
INNOVATION – ANTICIPATE GLOBAL TRENDS, IDENTIFY
CLIENT NEEDS AND EXPECTATIONS IN ORDER TO DESIGN
THE MOST INNOVATIVE AND RELEVANT PRODUCTS .
OBJECTIVITY – FOCUSED ON THE ESSENTIAL;
PRAGMATIC AND DECISIVE.
COSTS – RIGID COST CONTROL TO ACHIEVE GREATER
PROFITABILITY.
RESULTS – PRODUCT GROWTH AND SUSTAINED RESULTS
FOR OUR SHAREHOLDERS.
QUALITY – INCORPORATION AND DEVELOPMENT
OF LATEST-GENERATION TECHNOLOGY TO ENSURE THE
QUALITY OF OUR PRODUCTS AND PROCESSES.
ENVIRONMENT AND COMMUNITY – CONSCIOUS
AND RESPECTFUL OF OUR ENVIRONMENT AND THE
COMMUNITIES WHERE WE BUILD OUR PROJECTS.
4

10. BASED IN SÃO PAULO, GAFISA
S.A. IS ONE OF THE LEADING
CONDOMINIUM DEVELOPERS IN
BRAZIL, AND IS CONSIDERED A
BENCHMARK FOR QUALITY,
INNOVATION, EFFICIENCY AND
PROFESSIONALISM IN THE
DOMESTIC MARKET. SINCE ITS
INCEPTION IN 1954, GAFISA HAS
COMPLETED MORE THAN 950
DEVELOPMENTS, REPRESENTING
NEARLY 40 MILLION SQUARE
METERS OF COMPLETED
CONSTRUCTION PROJECTS.

11. HIGHLIGHTS
OF 2007
Institution Rating Last
change
Standard & Poor’s brA 06/19/2007
Fitch Ratings brA- 05/03/2006
Launches | % Gafisa
(R$ million)
2,236
CAGR* 121%
122%
1,005
652
207
04 05 06 07
* Compound annual growth rate
Sales | % Gafisa
(R$ million)
1,627
CAGR* 86%
63%
995
450
254
04 05 06 07
* Compound annual growth rate
Net Revenue
( R$ million)
1,172
CAGR* 41%
77%
664
457
417
04 05 06 07
* Compound annual growth rate

12. EBITDA
R$ million
16.7%
15.7%
14.8%
12.9%
* Compound annual growth rate
184
CAGR* 38% 87%
98
69
59
04 05 06 07
EBITDA EBITDA Margin
Net Income
R$ million
12.3%
11.4%
* Compound annual growth rate
144
6.7%
89%
5.6%
76
CAGR* 83%
31
23
04 05 06 07
Net Income Net Margin
Net debt/net equity
R$ million
72.1%
67.7%
183
175
3.6%
11.4%
29
106
04 05 06 07
Net debt Net debt PL
Backlog of Results
R$ million
38.2%
38.8%
37.5%
* Compound annual growth rate
583
33.6%
CAGR*
68% 96%
298
169
123
04 05 06 07
REF Margin REF

13. HIGHLIGHTS OF 2007
ACQUISITION OF ALPHAVILLE
URBANISMO S.A.
In January, the Company completed its
acquisition of 60% of AlphaVille Urbanismo
S.A., Brazil’s largest urban property
developer, for R$201.1 million, comprised
of R$ 20 million in cash and R$ 181.7
million in stock. The remaining 40% will be requirements are met. The projects are BLUEPRINT MORTGAGE
acquired in two phases: 20% in 36 months focused on customers with family income of Launched in partnership with a large
after the initial phase and the remaining 3 to 10 minimum wages and are based on financial institution, a new financial
20% in 60 months. These payments will the Mexican residential model which has product, the Blueprint Mortgage,
be made in cash or stock, to be determined been adapted to the Brazilian market and offers consumers a favorable rate with a
by Gafisa S.A. The acquisition of AlphaVille contains over 1000 units. long-term repayment option while reducing
expanded the Company’s presence into working capital requirements for Gafisa.
35 new cities in 16 states. ACQUISITION OF 70% OF CIPESA Buyers can finance the 10% initial down
In October, the Company acquired 70% payment as well as lock-in a twenty-five
NYSE of Cipesa Empreendimentos Imobiliários year mortgage on the remaining 90%
In March, Gafisa S.A.’s ADR’s began trading from Cipesa Engenharia. In addition to purchase price of a new home prior
on the New York Stock Exchange under capitalizing the new company with R$ 50 to construction.
the ticker GFA, making it the first and only million in cash, Gafisa S.A. acquired a further
Brazilian company in the sector to be listed R$ 15 million in shares. Cipesa Engenharia IBOVESPA, IBRX-50 AND MSCI
in the United States. will also receive a 2% earn-out of Potential Gafisa S.A. shares are now traded on
Sales Value (PSV) on projects launched up to the IBOVESPA, the most important index of
CREATION OF FIT RESIDENCIAL 2014, to a limit of R$ 25 million. The newly the São Paulo Stock Exchange, and the IBrX,
In March, the creation of a new Gafisa S.A. acquired subsidiary will be responsible for the an index based on the 50 most-traded
subsidiary, Fit Residencial was announced. development of all Gafisa projects in the companies. The Company also trades
Fit Residencial was created to focus on states of Alagoas and Sergipe. internationally on the MSCI Emerging
residential condominium development in Markets Index, which is adjusted by market
major urban centers, for the 5 to 20 ELDORADO BUSINESS TOWER, value and trading volume and measures
minimum wage population. IN SÃO PAULO the performance of emerging market
Work was completed on the Eldorado equities in global markets.
CREATION OF BAIRRO NOVO Business Tower in December. The tower is
In April, Gafisa and Odebrecht the fourth in the world to obtain Leed® GAFISA VENDAS IN RIO DE JANEIRO
Empreendimentos Imobiliários entered into CS 2.0 Platinum (Leadership in Energy and Gafisa Vendas began operations in
ANNUAL REPORT 2007
a 50/50 joint venture to create Bairro Novo. Environmental Design) pre-certification, Rio de Janeiro in April 2007, with the
The subsidiary was created to drive the which was granted by the U.S. Green aim of adding strength, management and
development of large-scale residential projects Building Council, as a result of the excellent service to the group’s property
and ensure all residential infrastructure sustainable solutions adopted in its design. sales efforts.
Highlights of 2007 | 7

14. MESSAGE FROM
THE MANAGEMENT
Every Gafisa S.A. product carries the mark professionals who demonstrate a long term to further strengthen our geographical
of excellence and exemplifies our goal to commitment to the company, thus building expansion process we have adopted a
surpass expectations. While putting into a team that shares one common ambition: decentralized business model and will focus
practice a strategy that aims to make all to be the largest company by sales and the on the establishment of local partnerships.
of our activities sustainable, we were able best in return to shareholders in the In 2007, our operations reached 47
to achieve impressive results in 2007, residencial urban development and municipalities in 17 states, proof of our
including growth in project launches of construction segment. expanded national presence. We believe
122% and pre-sale growth of 63%, as these enhancements to Gafisa’s portfolio
compared to 2006. Our land bank reached THE SUCCESS ACHIEVED and structure will allow the Company
a total of R$10.2 billion, representing future BY GAFISA IN 2007 EXPANDS to maximize returns for its investors
launches for a period of two to three years, ITS ABILITY TO GENERATE and position the Company to take
in line with our diversification policy. RETURNS FOR advantage of future growth opportunities.
In 2007, we launched 53 building projects, SHAREHOLDERS, WITH As of March 2007, we were the only
and sales reached R$1.6 billion. WHOM THE COMPANY Brazilian property developer to be listed
On December 31, 2007, we had 118 MAINTAINS A RELATIONSHIP on the New York Stock Exchange.
developments underway across a number of BASED ON TRANSPARENCY. This step required that we adopt all
Brazilian states. Our net income, adjusted for conduct codes and controls required by
public offering expenses, reached R$144 In 2007, we took important steps towards the Sarbanes Oxley Act. In order to fully
million, showing a growth of 89% over 2006. achieving this by constructing a business implement these standards we introduced
The driver behind all of the Company’s platform that significantly enhances our the SAP management system which will
achievements is our primary asset: people. ability to take advantage of opportunities allow us to leverage scalability where
We are recognized for our superior training in the Brazilian market. The acquisitions feasible and closely monitor cost structures.
programs and take pride in the large of AlphaVille Urbanismo S.A. and Cipesa This is an important tool for facing one of
number of outstanding professionals we Empreendimentos Imobiliários, the the main challenges of 2008:
employ. We believe the value they provide creation of Fit Residencial and Bairro Novo, communication between the group’s
is what separates us from the rest of the and the consolidation of Gafisa Vendas, companies in order to captitalize on
Brazilian housing construction market. In allowed us to expand our product and synergies and business opportunities.
2000 we adopted a share option plan to service portfolio into additional segments We remain focused on continuing to
encourage meritocracy and reward of the Brazilian population. In order strengthen our corporate structure.
8

15. The companies linked to Gafisa S.A. have full autonomy in
conducting their business within their respective markets. This
ensures expertise and total focus for the niche in which each
company operates. Looking ahead to 2008, we expect a significant
increase in both Fit Residencial’s and Bairro Novo’s contribution to
revenue, as they operate in income segments where the majority of
Brazil’s housing deficit is concentrated.
Falling interest rates, expected income increases, and greater credit
availability combined with an overall optimistic forecast for the
Brazilian economy, lead us to believe that the rate of expansion
in the housing sector will remain high for the coming years.
This scenario presents us with a great opportunity and demands
precise operational and financial planning.
Given these factors, we expect project launches to reach
approximately R$3 billion in 2008, representing a 34% growth
over 2007. We also expect to boost our operating results, with
an estimated EBITDA margin of between 16% and 17%.
Gafisa’s performance shows that we are on the right path.
Our management team combined with our capacity to identify
and effectively capitalize on market opportunities will allow us
to continue delivering outstanding results
Wilson Amaral
Chief Executive Officer
ANNUAL REPORT 2007
Message from the Management | 9

17. STRUCTURE AND
BUSINESS MODEL
The organizational structure of Gafisa has changed significantly over the last year due to the
acquisition and creation of several companies. We believe that in order to achieve sustainable
long-term growth, the company must be structured so it can continually broaden its presence
and product portfolio.
Gafisa S.A. operates with a corporate structure and Business Units. The Company carries out
its developments under the Gafisa name, through two operational departments;
Developments and Construction and Engineering. These departments monitor the portfolios
of AlphaVille, Fit Residencial and Bairro Novo as well as the operations of Gafisa Vendas.
Gafisa also has four corporate departments; Finance, Business Development, People and
Management and Institutional Relations, which support all operations of the Company. The
organizational chart below shows the corporate and portfolio management role of Gafisa S.A.
Gafisa S.A.
Business
Finance
Development
People and Institutional
Management Relations
ANNUAL REPORT 2007
Gafisa Gafisa
FIT Gafisa
Bairro Novo AlphaVille Construction and Vendas
Residencial Developments
Engineering (Sales)
Structure and Business Model | 11

18. Each subsidiary is autonomous which allows it to focus specifically on its operations within THE COMPANY’S ACTIVITIES
its respective markets. However, each subsidiary remains dedicated to identifying and IN 2007 STRENGTHENED THE
taking advantage of synergies within the company, such as partnerships with strategically
STRATEGY OF BROADENING
located developers and joint purchase of supplies, as well as working towards the common
ITS PRODUCT PORTFOLIO AND
goals of the Company.
ESTABLISHING A PRESENCE
THROUGHOUT BRAZIL.
CONSTRUCTION MANAGEMENT
Our construction management model is characterized by decentralization and management
of each development as a business unit, which allows the Company the necessary flexibility
to grow efficiently throughout the country while maintaining the Gafisa identity. Engineers
and architects are trained to operate as “business owners” with an understanding of the
Company’s vision and the capacity for decision making.
Communication is vital to ensuring that Gafisa’s goals and characteristics are conveyed in
the appropriate construction technology, as well as process and specifications. This entails
not only sharing results and best practices, but also ensuring that the Company’s strategy
is well defined. Information systems allow the entire company to track the progress of
a development with respect to three crucial aspects; cost, deadline and quality.
This boosts transparency across the developments and creates healthy competition
between business units.
LOCAL PARTNERSHIPS
Gafisa’s partnerships with local developers are vital to the Company’s continued
expansion into sustainable growth markets. At the end of 2007, agreements were in place
with 12 partners in 14 Brazilian states. The scope of each partners’ work is defined based
on a variety of factors including their existing product portfolio as well as a comprehensive
quality analysis of their previous work. Gafisa S.A. always seeks to hold at least 50% of
the business to be developed.
Regional managers identify business opportunities throughout Brazil and operate as
“business owners”, committed to achieving results and reaching established targets.
12

19. BENEFITS FOR BOTH GAFISA AND ITS PARTNERS
Gafisa Partner
Partners have greater knowledge of local markets Acquisition of Gafisa know-how in real estate project
and cultures, facilitating understanding of consumer development, financial structuring, architectural conception,
needs and desires. development of sales and marketing strategies.
Reduces resistance to entry into new markets. Links with the nationally recognized Gafisa brand
and increased liquidity of developments.
Partners’ existing relationship with public authorities Greater access to banks for structuring of real
and other public and private organizations simplifies estate credit agreements.
project approval processes.
Reduction of infrastructure costs through possibility
of using partner’s resources, such as customer
contact facilities.
INTEGRATED ONLINE SALES SYSTEM
IN ORDER TO ENABLE ITS The Company has integrated its online sales system in order to
EXPANSION THROUGHOUT THE manage all project developments. The system allows real time
COUNTRY, THE COMPANY access to sales plans (preventing errors such as the double sale of
MAINTAINS PARTNERSHIPS WITH the same unit), chronological order of offer placement, permitted
LOCAL DEVELOPERS AND price variations as well as a variety of other programs that facilitate
CONSTRUCTORS. the proper flow of information. The system also ensures greater
reliability of customer information, eliminating the need for
ANNUAL REPORT 2007
subsequent data entry and storage. Besides agility, the system adds
transparency to the business.
Structure and Business Model | 13

20. STRATEGY
In order to become Brazil’s leading residential housing, urban partnerships with local developers to move into new markets
development and construction company Gafisa has established more rapidly and with a better understanding of local requirements,
the following goals: needs and cultures. This diversification strategy also represents
a way of limiting risks and protecting the company against the
STRONG REVENUE GROWTH seasonality of demand found in some parts of the country.
Gafisa will leverage its experience and knowledge of Brazil’s
residential markets, its brand recognition and growing national LAND BANK FOR TWO TO THREE YEARS
presence, as well as its organizational structure and local A land bank capable of supporting the launch of new developments
partnerships to grow revenues. The target for 2008 is to reach for a period of two to three years is maintained. This strategy gives
R$3 billion in new launches, up 34% on 2007. the Company necessary leverage to negotiate land purchases at fair
market prices and guarantees the conditions required for the
FOCUS ON HIGH-RETURN OPPORTUNITIES sustained growth of the operations. Land bank acquisitions are
Gafisa will make all investment decisions based on extensive made in strategic locations with high visibility and market potential
market research and analysis as well as rigorous viability studies. and within defined investment limits so that each development can
It will limit cash and leverage, giving priority to segments offering meet its margin and return targets. The land bank diversification
higher return. strategy Gafisa employs prevents a concentration of developments
in one market and ensures flexibility to meet demands.
PRODUCT DIVERSIFICATION This positions the Company to take advantage of launch
The Company will continue to expand its operations through opportunities that arise throughout the country.
its multiple product portfolios in order to meet the needs of all Gafisa employs professionals solely dedicated to the task of
segments of the population. prospecting and filtering the best investment opportunities.
These professionals are constantly monitoring opportunities and
GEOGRAPHICAL EXPANSION have detailed knowledge of their respective markets which includes
The span of the Brazilian real estate market and favorable performing comprehensive analysis of the competition. Swaps,
demographic trends will play a pivotal role in the expansion of the or the exchange of housing units for the area on which they are to
company’s market position. The regional diversification strategy be developed, make up for a significant part of the land bank,
is based on 46 regions in the country containing over 200 together with acquisitions in significant locations.
municipalities, each with strong demand potential. To take
advantage of this opportunity, the company will leverage its
14

21. FINANCIAL AND INVESTMENT DISCIPLINE
Gafisa S.A. maintains a conservative attitude in relation to debt and
seeks to make the best use of its capital. Leverage is limited to a net
debt to equity ratio of not more than 60%. Maximum launch
volume is achieved by process improvement in order to maximize
productivity, minimizing the use of Gafisa capital, and utilizing
resources from Brazil’s Housing Finance System to finance
developments. Approximately 70% of units are sold before the
construction begins. The company also seeks to safeguard its
receivables in order to recycle its capital at more attractive rates of
return and improve its capital structure, so as to generate maximum
return for its shareholders while maintaining an appropriate level of
financial costs and risks.
TRAINING PEOPLE
Emphasis on employee training provides the Company with a
competitive edge. Every year the trainee and intern programs attract
large numbers of candidates (17,000 in 2007), which provide the
Company with a large pool of qualified, well-trained personnel and
ensures employment continuity.
OUTLOOK
In 2007, Gafisa S.A. expanded its project launch target from
R$1.65 billion to R$1.9 billion, as a result of having reached 70%
of the original forecast by September. Project launches for 2007
totaled R$2.236 billion, up 122% from 2006, and are projected
to reach R$3 billion for 2008. It is expected that the consolidated
EBITDA margin will stay between 16% and 17% for the year.
For 2008 and subsequent years, consolidated revenue is expected
to receive a significant contribution from Fit Residencial and Bairro
Novo. Both operate within the lower income bands, which have
the highest concentration of demand for housing in Brazil.
A stable and promising macroeconomic scenario indicates that
credit lines should be expanded, which is essential for the
development of this market.
ANNUAL REPORT 2007
Strategy | 15

22. COMPETITIVE
ADVANTAGES
PEOPLE AND CULTURE BRANDS
Gafisa S.A. brings both experienced real Buyers trust the quality of Gafisa products
estate and local development professionals and know the company will deliver quality
together to create a cohesive and dynamic developments in a timely manner. Rapid
team. The company’s organizational sales confirm the strength of the brand and
structure promotes innovation and efficiency its solid reputation among potential property
by rewarding employees who meet both buyers, agents, financers, landowners
individual and collective targets. as well as our competitors. The AlphaVille
brand symbolizes high-quality developments
SHAREHOLDER BASE and was awarded the Superbrand 2006
The Company has a broad base of award from English Superbrand Global. AMONG THE COMPANY’S
shareholders, an 84% public float and a The brand has received three consecutive DIFFERENTIALS ARE ITS
commitment to the best practices of Premio Eco awards from the American PROFESSIONALS, CULTURE,
corporate governance. Chamber of Commerce (Amcham). Gafisa
HIGH STANDARDS OF
operates on the basis of market research,
CORPORATE GOVERNANCE,
GEOGRAPHICAL DIVERSIFICATION which has proven to be correct in
PRESENCE IN DIFFERENT
The Company maintains a presence ascertaining the preferences of consumers
REGIONS OF BRAZIL, BRAND,
throughout many regions in Brazil and and translating demand into products.
provides a varied product portfolio, including
DIVERSIFIED PRODUCT
products targeted at various income levels. PORTFOLIO, AGILITY AND
This diversification allows the Company to CAPACITY FOR INNOVATION.
prioritize investments with high returns and
reduce risks from depending on specific
markets. This also positions the Company to
quickly take advantage of new opportunities
and maximize synergies between companies
within the group.
16

23. INNOVATION
The Operations and Technology Development department is
constantly working on improving the standardization of on-site
activities and industrialization of the construction process. These
improvements allow the Company to shorten deadlines, reduce
losses, control products and services at the source and absorb the
logistics potential of suppliers.
These developments also ensure that the Company maintains
the necessary conditions required to efficiently carry out a large
number of projects simultaneously. For example, the production
of pre-fabricated kits which include all construction materials
necessary for a job, simplifies installation and ensures the same
standard of quality across all projects. The transformation of
ideas into solutions simplifies the planning and management
of costs and construction.
AGILITY IN PROJECT APPROVAL
Gafisa S.A.’s Department of Institutional Relations is responsible
for ensuring that all development applications move swiftly through
the federal, state and municipal bodies. The Department maintains
contact with these organizations to make certain that all
applications have the correct format, are submitted correctly and
meet all necessary legal requirements

25. CORPORATE
GOVERNANCE
Gafisa S.A. shares are listed on the São Paulo Stock Exchange management system. The first certification should take place
Novo Mercado, which brings together companies committed to in December 2008, and PriceWaterhouseCoopers has been hired
adopting a higher standard of transparency in corporate governance to provide support for the definition of the processes so as to meet
practices that go beyond the legislative requirements. The listing the SOX requirements.
requirements apply to the rights of shareholders and are designed
to improve the quality of stock dispersion and ensure greater BOARD OF DIRECTORS
reliability of disclosed information. A Market Arbitration Panel was The Board of Directors deliberates on the general orientation of the
also created to settle disputes between investors and companies. business and is responsible for the election of the executive officers.
Companies on the Novo Mercado can only issue shares with full Currently the Board consists of seven people, including four
voting rights and tag-along rights to ensure that, in the case of independent directors, whose total and individual remuneration
a public offering for a controlling interest in the company, the same is defined by the general shareholders meeting. These members
price will be paid to all shareholders. were elected to serve a term of two years, which will expire at the
2010 General Meeting, and can be reelected. Regular meetings take
SARBANES-OXLEY ACT place at least once every three months and meetings can be called
The listing of shares on the New York Stock Exchange in March 2007 at any time by the chairman or by at least two members. In 2007,
required the adoption of certain structures and internal controls in 12 regular and extraordinary meetings were held, a third of these
order to meet the standards set forth in the US Sarbanes-Oxley Act person. The members of the Board are:
of 2002 (SOX), which aims to ensure greater transparency in Gary R. Garrabrant – Chairman of the Board, graduated from the
accounting and financial statements. University of Notre Dame (USA) with a degree in finance. Founder
In order to comply, the company created an Audit and an Ethics and leader of Genesis Capital Investment, a New York based
Committee, drafted a Code of Ethics to be signed by all employees, securities management company for the real estate sector. Mr.
and established an anonymous communications channel for Garrabrant was also a senior investor in the real estate market, first
employee complaints regarding any behavior that does not meet the at Chemical Bank and then at The Bankers Trust Company. He is
company’s standards. currently CEO and co-founder of Equity International, vice-president
Steps have also been taken to develop a range of policies to of Equity Group Investments, LLC, vice-chairman of the board of
formalize the operational and business rules of Gafisa S.A. and its directors of Homex Development Corp., one of Mexico’s leading real
ANNUAL REPORT 2007
subsidiaries, which should be concluded in the first quarter of 2008. estate developers, and a member of the board of directors for a
The company is working towards the certification of its internal number of companies in the Equity International group. He is also a
controls, in connection with the introduction of the integrated SAP member of the Real Estate Advisory Board of Cambridge University.
Corporate Governance | 19

26. Thomas McDonald – Graduated from Richard L. Huber – Graduated from
the University of Notre Dame with a degree Harvard University with a degree in
in Institutional Relations. Mr. McDonald Chemistry. Mr. Huber began his career as
joined Equity International in 1999, where a trainee at the First National Bank of
he is executive vice-president, responsible Boston in 1959. He invests in a wide range
for the company’s investments. He is also of companies in different sectors, especially
a member of the board for a number of in Latin America. He worked for 40 years
companies in the group. in the financial area before leaving Aetna
Renato de Albuquerque – Engineer, Inc., where he was CEO, executive president
graduated from the University of São Paulo and chairman of the board. Mr. Huber is a
(USP) and is one of the founders of member of the board of directors and
Albuquerque, Takaoka S.A. in 1951. Mr. chairman of the fiscal council of the
de Albuquerque was responsible for the first supermarket chain G. Barbosa Comercial
AlphaVille development in 1973. He founded Ltda., and is also a member of the board of
AlphaVille S.A. in 1995. MaltaCleyton S/A, (Mexico), Vina San Rafael
Caio Racy Mattar – Civil Engineer, Mr. S.A., (Chile), Covanta Energy Corporation,
Mattar holds a postgraduate degree from the and other companies. Mr. Huber is also
London Business School. He is currently the responsible for the administration of private
executive director of Companhia Brasileira de equity portfolios. He is an independent
Distribuição (CBD-Grupo Pão de Açúcar) and board member.
is a member of the board of directors for Gerald Dinu Reiss – Graduated with
both Sendas Distribuidora S.A. and degree in Electrical Engineering from the
Paramount Têxteis Indústria e Comércio S.A. Polytechnic School of the University of São
He is an independent board member. Paulo (USP). MBA and PhD in
Fabio Schvartsman – Graduated from Administration from the University of
the Polytechnic School of the University of California, Berkeley, USA. Was Planning
São Paulo (USP) with a degree in Production Manager at Metal Leve S.A., where he
Engineering and holds a postgraduate worked from 1972 to 1974. Worked at
degree in Business Administration from Grupo Ultra between 1980 and 1986, first
the Escola de Administração de Empresas as Director of Planning and Development
de São Paulo/Fundação Getúlio Vargas. and later as a member of the Executive
Mr. Schvartsman was the financial Committee. Since 1987, executive partner
superintendent of Grupo Ultra from 1985 and founder of CONSEMP – Consultoria
to 2007. He also worked at Duratex S.A. Empreendimentos Industriais Ltda. (now
from 1976 to 1985. He is the president known as Reiss & Castanheira Consultoria e
of Telemar Participações S.A. and a member Empreendimentos Ltda.). Currently member
of the board of directors of TeleNorte Leste of the Board of Directors of a number of
(TNL), Contax and Pão de Açúcar. He is an Brazilian companies, including CAEMI,
independent board member. Petrobras S.A., Petrobras Distribuidora S.A.,
COMERC and Grupo Pão de Açúcar.
Independent board member.
Gary Garrabrant
Chairman

27. EXECUTIVE OFFICERS MBA from Harvard Business School. Mr. Osmo worked as an associate
There are currently six Gafisa S.A. executive officers, whose at GP Investimentos, as a consultant at Bain & Company, as assistant
mandates were set forth at the meeting of the board of directors on professor at the Finance Unit of Harvard Business School, and was
December 22, 2006. These officers are responsible for the day-to- founding partner of Ysoquim Representações Internacionais.
day decisions of the company and implementing the general Rodrigo Ferreira Coimbra Pádua – Director of People and
policies and guidelines established by the general assembly of Management – Graduated from União de Negócios e
shareholders and by the board of directors. They will serve for three Administração (UNA-MG) with a degree in Corporate
years, at the end of which they may be reelected. The position may Administration, and holds an MBA in Human Resources from
also be terminated at any time deemed appropriate. Fundação Getúlio Vargas and in Business Management from IBMEC.
Wilson Amaral de Oliveira – CEO – Graduated from Fundação Mr. Pádua was manager of people and management and project
Getulio Vargas with a degree in Business Administration, and a manager at AmBev, and HR manager at Danone.
specialization in Marketing from Escola Superior de Propaganda e Nelson Martinez – Director of Control and Planning –
Marketing. Mr. Amaral was as a member of the board of directors Graduated with a degree in Accounting Science. Mr. Martinez holds
and director of Grupo Playcenter S.A., president of Grupo Artex an MBA in Finance and Corporate Management from FEA USP with
Ltda., a sales and marketing director of Fundição Tupi, Tupy Tubos e specialization in Finance from New York University. He is a former
Conexões Ltda. and CLC Alimentos, member of the board of member of the fiscal council of Santista Têxtil S.A.; former controller
Americanas.com S.A., Kuala (successor of Artex Ltda.), Toalia S.A. at São Paulo Alpargatas S.A and Monsanto do Brasil Ltda.
and ABC Supermercados S.A., executive partner of Finexia, country
manager of DHL Worldwide Express do Brasil Ltda., executive EXECUTIVE OFFICERS OF THE SUBSIDIARIES/UNITS
superintendent of Tupi Perfis S.A., member of the board of directors Antônio Carlos Ferreira Rosa – Managing Director of Gafisa
of Hopi Hari S.A. and member of the Fiscal Council of Lojas Incorporação – Graduated from University of São Paulo with a
Americanas S.A. degree in Civil Engineering. Mr. Rosa began in the company as an
Alceu Duílio Calciolari – CFO and Director of Investor intern and held several positions including construction manager
Relations – Graduated from Faculdades Metropolitanas Unidas and project manager.
(FMU) with a degree in Business Administration and a Master Mário Rocha Neto – Managing Director of Gafisa Construção
in Controllership from Pontifícia Universidade Católica de São Paulo. e Engenharia – Graduated from the Polytechnic School of the
Mr. Calciolari began his career as a trainee at Banco Real S.A., University of São Paulo with a degree in Civil Engineering. Mr. Neto
in 1978. From 1983 to 1996, he worked as an auditor at Arthur began in 1978 as an intern in Gomes de Almeida Fernandes
Andersen LLP. He was a financial director of Tupy S.A., from 1996 to (Gafisa’s predecessor company), and was also a member of the
1998, and ALL – América Latina Logística S.A., from 1998 to 2000. board of directors of Y. Takaoka Empreendimentos S.A. in 2003 and
He has been a director of Gafisa S.A. since 2000. 2004 and of the board of the Civil Construction Industry
Odair Garcia Senra – Director of Institutional Relations – Organization. At Gafisa he was initially an engineer and manager of
Graduated from Mauá Engineering School – Instituo Mauá de a group of building projects.
Tecnologia (IMT) with a degree in Civil Engineering. Mr. Senra began Julio Cesar Gomes Pedro – Managing Director of Gafisa
as an intern in 1970 at the former Gomes de Almeida, Fernandes, Vendas – Graduated from University Cândido Mendes (RJ) with a
working as a works engineer, a general manager of works, a degree in Economics, and graduate studies in capital and future
director of construction and a director of condominiums. He held markets from BM&F, holds an executive MBA from IBMEC, and a
the post of Professor of Hydraulics and Sanitation at Mauá Masters from Ivey University, Ontario, Canada. Mr. Pedro worked for
Engineering School in 1972 and has been a director of Secovi since five years at Kaiser Molson where he was the marketing director
2005 and vice-president of SINDUSCON-SP since 2006, representing and then vice-president for Sales and Marketing of Kaiser, as well as
this organization in the Technical Group for Urban Legislation vice-president of New Business and Innovation at Molson Canada.
(CTLU) of the São Paulo City Planning Department. His career began at Brahma/AmBev (1991/2000) in the area of
Rodrigo Osmo – Director of Business Development – strategic planning and then marketing where he held managerial
ANNUAL REPORT 2007
Graduated from the Polytechnic School of the Universidade de São positions at Skol, Fratelli Vita, Brahma and Antarctica.
Paulo (USP) with a degree in Chemical Engineering and a holds an
Corporate Governance | 21

28. João Audi – Managing Director of AlphaVille Urbanismo –
Graduated with a degree in Engineering and economics and a
Master in Corporate Administration from Kellogg School of
Management, Chicago. Previously, Mr. Audi was CEO of Parmalat,
Metalúrgica Prada and Lusosider in Portugal. He occupied
management position in Shell Brasil, Profarma and CSN.
Newman Brito – Managing Director of Fit Residencial – Mr.
Brito holds an MBA from IBMEC Business School and specialization in
real estate from Harvard Business School. He began in the real estate
market in 1996 at Atlântico Sul Empreendimentos where he was the
regional manager and sales director until 1999. Between 2000 and
2002, as executive partner, participated in the start-up of
Areautil.com and its sale to Homestore, which at the time was the
world leader in internet real estate sales. He began in the Schahin
Group in 2003 where he was responsible for restructuring the real
estate department and created Schahin Real Estate Development,
holding the position of executive director up to March 2007. He took
on his position at Fit in August, 2007.
Roberto Senna – Managing Director of Bairro Novo – COMMITTEES
Graduated from Federal University of Bahia with a degree in Civil The following committees are maintained:
Engineering and holds an MBA in Corporate Strategy from
Fundação Getúlio Vargas. He joined the Odebrecht Organization AUDIT COMMITTEE
in 1979, where he held various positions as an executive in the The Audit Committee is comprised of three members.
Engineering and Building business in Brazil and abroad, having The Committee meets at least once every quarter and together
been the director at Odebrecht Infrastructure Investments. He was with the auditors, is responsible for the planning and revision of the
CEO and member of the board of directors of Opportrans, the annual and quarterly reports and accounts as well as ensuring the
Metrô Rio concessionaire. He has also been a member of the board maintenance of an effective system of internal controls. One
of directors of Telemar, Brasil Telecom, Telpart (parent company of member is a financial specialist who is required to disclose a 20-F
Telemig Celular and Amazônia Celular). Mr. Senna was director of Form every year in compliance with the US Security and Exchange
Telemar Participações and of Lexpart and Argolis, which are Commission (SEC). The final responsibility for revising and approving
investment channels of the Opportunity Group. the annual and quarterly reports and accounts remains with the
company's management.
FISCAL COUNCIL
The Gafisa S.A Fiscal Council is not permanent and may be set REMUNERATION COMMITTEE
up as needed. When needed, the Committee may be created and The Remuneration Committee is comprised of three members.
shall consist of three members elected by the general shareholders This Committee is responsible for assessing and recommending
meeting and must have the same number of substitutes. measures related to the company's remuneration policies and all
Its functions will end at the next annual general meeting and its forms of remuneration offered to the executive directors and other
members may be reelected. Remuneration for members is decided Gafisa S.A. employees. In 2007 the General Shareholders Meeting
by the general meeting and the shareholders who elect them. fixed the total compensation to Gafisa’s management in the amount
of R$5,880,732.00 for the year 2007, including fixed and variable
compensation. The Board of Directors defines the amount to be
distributed to each executive based on his responsibilities, the time
in the position, professional reputation and market value of these
services rendered.
22

29. INVESTOR RELATIONS
A variety of communication channels have
been established through the Investor
Relations department to facilitate the transfer
of information from the Company to its
shareholders and the market. Gafisa’s website
is available in both Portuguese and English,
and makes available relevant investor
information including; the Company’s results,
stock performance, corporate calendars and
important disclosures. In 2007, Gafisa hosted
an Association of Stock Market Analysts
and Professionals (Apimec) meeting for
investors and market analysts in which
all of its directors participated presenting
the strategy and results. The Company
participated in a number of meetings,
conferences and roadshows, both in Brazil
CORPORATE GOVERNANCE COMMITTEE CODE OF CONDUCT AND ETHICS and abroad.
The Corporate Governance Committee is Gafisa S.A implemented a code of ethics in
comprised of three members. The 2007 which must be signed by all SUBSIDIARIES
Committee’s responsibilities are to analyze employees. All professionals receive training Gafisa owns less than 100% of the
and periodically report on issues related to about the guidelines set forth in the Code following subsidiaries and their board
the selection, investiture and size of the and how to proceed should a stated structure is as follows:
Board of Directors. The Committee may also guideline be violated. The Company also AlphaVille Urbanismo S.A. – Made up
develop and recommend principles of ensures that there is always a proper of five members, of which three are
governance applicable to the company. channel available to report a violation. As of appointed by Gafisa S.A., which holds
the end of 2007 the Company had received 60% of the business.
INVESTMENT COMMITTEE two communications addressing aspects of Bairro Novo – Gafisa S.A. and Odebrecht
The Investment Committee is comprised of employee behavior, but not concerning Empreendimentos Imobiliários have equal
three members; the chairman, a member of issues related to fraud or financial impacts. shares in this joint venture and hold joint
the Board of Directors, and the CEO of control of the new company, participating
Gafisa S.A. The Committee’s mission is to INDEPENDENT AUDITING equally and only by means of the board of
analyze, discuss, and recommend land The financial statements are audited by directors. The executives were selected
acquisitions as well as to give counsel to the PriceWaterhouseCoopers. The relationship based on market standards and no
directors about the negotiations of new with the auditors is based on the shareholder has preference in nominations
projects and the structure of building international independence principles as for a specific administrative position neither
projects. The Committee may also follow well as the Company’s internal audit or in providing services for the joint venture.
launches and respective cash flows and, in services policy. In 2007, services were Cipesa Empreendimentos Imobiliários –
special cases, participate in negotiating and contracted not related to external auditing Of the seven board members, four
setting up new types of business. in amounts higher than 5% of the annual (including the chairman) are appointed by
honorariums contracted. Gafisa S.A. The former controlling members
of Cipesa should maintain their roles in the
ANNUAL REPORT 2007
company for five years and sign a
long-term non-competition agreement.
Corporate Governance | 23

30. THE SECTOR IN 2007
The combination of a drop in interest rates, increased earnings for workers, and growth Despite the significant growth, this total
in the supply of credit for real estate financing has created a highly favorable environment represents approximately 2% of the Gross
for the housing construction sector in Brazil. Economic stability and optimistic forecasts Domestic Product (GDP), while in countries
for economic growth, coupled with the pent up demand for real estate, underlie forecasts such as Chile and Mexico the average
for fast growth in the sector over the coming years. These factors have also minimized percentage of GDP is 13%. The growing
the possibility of the country undergoing merely a short-term real estate boom. interest of banks, both public and private,
The housing deficit is estimated at 7.964 million units according to a Fundação Getulio to offer housing credit with longer terms,
Vargas study carried out based on information from the 2006 National Housing Sample up to 30 years, was another driver in the
Survey (Pnad) from the Brazilian Geographical and Statistical Institute. With a young and market and the ensuing reductions in the
growing population (45.5% of the inhabitants are below age 25 and 23% are between basic interest rate should encourage
age 26 and 39), the demographic forecasts in the country point to the formation of 1.5 Brazilians to undertake even more financing.
million families each year up to 2020. With the number of families growing at a rate higher The Brazilian market for residential
than the population (2.43% compared to 1.16%), in order to meet the deficit it will be developers is fragmented, with more than
necessary to build homes at a more accelerated pace than that of the growth of population, 20 general contractors listed on the
according to the analysis of the Brazilian Chamber of the Construction Industry (CBIC). São Paulo Stock Exchange (BOVESPA).
In 2007 the national civil construction sector registered a growth of 7.9%, according to data The market share of Gafisa's brands in the
from the Civil Construction Industry Organization (SINDUSCON-SP), causing its share in the São Paulo and Rio de Janeiro markets, where
national Gross Domestic Product to move up one percentage point in the year from 4.5% they have been established for the longest
to 5.5%. According to SINDUSCON-SP the share of this sector of the GDP is expected to period, is estimated at 4.3% and 7.7%
reach over 10% in 2008. according to information from Embraesp
The volume of real estate financing with funds from savings accounts, essential to making and Ademi.
it possible for the lower income population to have access to their own homes, reached
R$ 18.4 billion and is 98% higher than last year. It was the largest volume in 19 years
and represented the financing of 195,981 units (72% more than in 2006) according to the
Brazilian Association of Real Estate and Savings Entities (ABECIP). Adding the banks' own
portfolios (R$ 18.4 billion) and funds from Employment Security Fund (FGTS), which
reached R$ 6.9 billion, mortgages as a whole totaled R$ 25.3 billion, a growth of 55%
compared to 2006.
24

32. GAFISA
Gafisa develops vertical condominium
developments for the middle and upper-
middle classes with an average price over
R$ 200,000. It closed the year with a
land bank of R$ 5.7 billion in future sales,
DEVELOPMENTS LAUNCHED IN 2007
based on the percentage of Gafisa's stake.
Developments were launched in 30 cities Development City Number PSV
in 17 states. of units (thousand R$)
The Company has teams specially focused % Gafisa
Isla São Caetano (SP) 240 75,683
on other markets in order to coordinate
Grand Valley Rio de Janeiro (RJ) 240 44,014
the expansion process outside of the cities Acqua Residence (Fase 1) Nova Iguaçu (RJ) 380 71,701
of São Paulo and Rio de Janeiro. In São Celebrare Caxias (RJ) 188 35,189
Paulo the prospecting is done by region Reserva do Lago Goiânia (GO) 96 24,567
within the State, which was divided into four CFS - Prímula São Paulo (SP) 96 29,906
large areas. For its activities in the rest of CSF - Dália São Paulo (SP) 68 18,430
CSF - Acácia São Paulo (SP) 192 47,784
Brazil, a committee for New Markets created
Jatiuca Trade Residence Maceió (AL) 500 39,546
a decentralized business model that can Enseada das Orquídeas Santos (SP) 475 125,721
be easily replicated and supported through London Green Rio de Janeiro (RJ) 300 51,069
establishing local partnerships. This is a Horizonte Belém (PA) 29 12,704
model that ensures flexibility and agility Secret Garden Rio de Janeiro (RJ) 252 38,699
when entering any market. The model was Evidence São Paulo (SP) 144 32,425
Fit Maceió Maceió (AL) 54 3,087
successfully tested in Manaus and Belém
Acquarelle Manaus (AM) 259 35,420
where building projects were completed in Palm Ville Salvador (BA) 112 15,106
2007. The process of entering a new market Art Ville Salvador (BA) 263 20,777
includes the following stages: Privilege Residencial Rio de Janeiro (RJ) 194 35,576
Visit the municipalities in order to gain JTR (Fase 3) Maceió (AL) 140 11,911
more information about the market Parc Paradiso (Fase 2) Belém (PA) 108 17,147
Supremo São Paulo (SP) 192 143,634
conditions, sales pace, prices, number
Orbit Curitiba (PR) 185 31,532
of housing developments launched, Parc Paradiso (Fase 1) Belém (PA) 324 58,754
needs, terms of sale, competition, and Vision São Paulo (SP) 284 87,336
contact with local developers. Solares da Vila Maria São Paulo (SP) 100 37,942
If a potential opportunity is identified Acqua Residence (Fase 2) Nova Iguaçu (RJ) 72 18,460
for developing building projects, Bella Vista (Fase 1) Resende (RJ) 116 46,046
Grand Park - Parque das Águas São Luis (MA) 240 21,851
structured surveys are then requested
Grand Park - Parque Árvores São Luis (MA) 400 29,978
about the local market, testing product SunValley Niterói (RJ) 58 24,925
segments by income range, location, Reserva Santa Cecília Volta Redonda (RJ) 122 36,788
typology, etc. Olimpic Bosque da Saúde São Paulo (SP) 148 56,722
A search for land is initiated parallel to Magic São Paulo (SP) 268 87,129
the above steps, as well as the selection Horto (Fase 1) Salvador (BA) 180 84,521
GrandValley Niterói Niterói (RJ) 161 57,104
of possible local partners, considering
their conformity with Gafisa's values, Total 7,180 1,698,202
portfolio, and reputation.
PSV = potential sales value
26

33. Housing Credit Deposits in Savings Evolution of the Brazilian Housing Deficit
(billion R$) Accounts
(R$ million)
8,000,000 17.0%
25.3
55%
7,500,000 16.5%
57%
16.3
51% 7,000,000 16.0%
10.4
235
15% 6.9
6.9
187
6,500,000 15.5%
6.0
7.0
18.4 6,000,000 15.0%
5.5
3.8 3.9 9.3
3.0 4.9
2.2 5,500,000 14.5%
03 04 05 06 07 06 07 93 95 96 97 98 99 01 02 03 04 04 05 06
Mortgages with funds from FGTS Absolute deficit
Mortgages with funds from SBPE Relative deficit
ANNUAL REPORT 2007
Sources: ABECIP, Central Bank of Brazil, CEF, and FGV Source: PNAD, 2006. FGV Projects
The Sector in 2007 | 27

34. Monitoring of housing developments in ALPHAVILLE URBANISMO S.A.
new markets is carried out by development AlphaVille Urbanismo S.A. (AUSA) is the only Brazilian urban development company with
managers that oversee specific regions. a national scope. It launched six housing development projects in 2007 and consolidated
They are also responsible for establishing its presence in 23 cities in 15 states. With the company’s integration into Gafisa S.A.,
and forming partnerships and for defending its culture transitioned into a more results-oriented one. It modified a series of policies and
each project at Gafisa's Investment procedures, and introduced enhancements in its financial area. This was done while
Committee. They act as managers of the maintaining the identity that transformed this company into one that is “Top of Mind”
entire product development process, with throughout Brazil. The immediate difference was the rate of growth, with potential sales
responsibility for presenting results in line value (PSV) doubling and 50% growth projected for 2008.
with or better than initial forecasts at the Brand recognition translates into sales success. In 2005, for example, 913 lots, representing
end of the cycle. Managers are supported by 100% of AlphaVille Natal, were sold in 16 hours. In 2006, AlphaVille Francisco Brennand
teams for prospecting new markets, product in Recife (state of Pernambuco) saw 95% of its lots sold within five days. And in 2007
development, sales and marketing, and at Alphaville Jacuhy in the city of Serra near Vitória (state of Espírito Santo) sold 500 lots
legal, administrative and financial processes. in just four hours and sold 95% of the lots in just ten days.
Cipesa Empreendimentos Imobiliários – The high added value of its products means AlphaVille can achieve higher margins than
Cipesa is the largest housing developer in its competitors in every market where it operates.
the State of Alagoas and has been a partner AlphaVille is considering expanding its scope of activities in 2008, one potential innovation
in projects with Gafisa since 2006. With the may include offering finished houses on its lots while other growth areas are being evaluated.
acquisition of 70% of Cipesa’s stock, Gafisa In the segment of second homes, it is considering offering rural and coastal products.
now leads all projects developed by Cipesa
in Alagoas and in the neighboring state
of Sergipe. The rest of the shares are held
by the Tércio Wanderley group, one of
the largest producers of sugar and alcohol
in the country with 45 years of experience
in civil construction.
DEVELOPMENTS LAUNCHED IN 2007
Development City Number PSV
of allotments (million R$)
Aracagy São Luis (MA) 332 23.1
Campo Grande Campo Grande (MT) 489 35.1
Rio-Costa do Sol Rio das Ostras (RJ) 616 51.7
Londrina 2 Londrina (PR) 277 17.2
Jacuhy Serra (ES) 775 102.9
Cajamar Cajamar (SP) 2 7.3
Total 2,491 237.3
PSV = potential sales value
28

35. FIT RESIDENCIAL
With only nine months of activity, Fit Residencial has surpassed the
results forecast for 2007. It has launched ten development projects
in eight cities (São Paulo, Salvador, Belém, Ribeirão Preto, Taboão
da Serra, Aparecida de Goiânia, São Luiz do Maranhão, and
Guarulhos) with a PSV of R$ 263 million and a land bank of R$ 973
million. Fit targets the population with income that ranges between
5 and 20 minimum wages, a segment with great potential for real
estate consumption, and sells its units at an average ticket price of
between R$ 80,000 and R$ 200,000.
Its strategy includes offering standardized vertical housing
developments of up to 1,000 units in urban regions with good public
service and business infrastructure, at affordable prices with accessible
financing. Fit has developed five standardized product profiles
specifically for the segment. Utilizing modeling technology, it follows
the growth trends of industrialization in housing construction. This
allows for increased standardization and the use of appropriate
building practices providing gains in scale, agility and cost reduction,
and making it possible to offer units at lower prices. Standardization
and scale contribute to shorter launch and construction times, which
also improve returns on these projects.
At the end of 2007, Fit had almost 80 professionals. This number is
expected to grow in 2008 with the expansion of the business and
the creation of dedicated, independent general contractors to serve
the Fit developments.
Goals for 2008 include consolidating the company's infrastructure
in order to efficiently execute planned projects and expand the
company’s presence in state capitals and smaller cities. Fit and Bairro
Novo forecast the launch of projects in 2008 worth R$ 700 million.
BAIRRO NOVO
Bairro Novo is a joint venture between Gafisa S.A. and Odebrecht
DEVELOPMENTS LAUNCHED IN 2007
Development City Number PSV
of units (million R$)
Jaçanã São Paulo (SP) 184 16.9
Cittá Imbuí Salvador (BA) 204 14.9
Coqueiros Anandineua (PA) 621 30.1
Mirante do Sol Ribeirão Preto (SP) 56 31.4
Taboão Taboão da Serra (SP) 374 22.1
Maria Inês Aparecida de Goiânia (GO) 270 14.3
Grand Park São Luís do Maranhão (MA) 894 60.2
Jd. Botânico São Paulo (SP) 432 21.3
ANNUAL REPORT 2007
Jaraguá São Paulo (SP) 260 18.3
Vila Augusta Guarulhos (SP) 264 33.8
Total 3,559 263.3
PSV = potential sales value
The Sector in 2007 | 29

36. Empreendimentos Imobiliários, created in February 2007 to offer a
new concept in real estate projects and housing developments
encompassing planned neighborhoods throughout the country. Bairro
Novo provides affordable housing solutions for families with a joint
income of between 3 and 10 minimum wages. Home prices range
up to R$ 100,000. Bairro Novo is a pioneer in this business model
focusing on products for lower income classes in the Brazilian market.
A pilot project took shape in December 2007 with the launch of
Bairro Novo Cotia, in the São Paulo metropolitan area. The plan is
for 2,386 units, including apartments and houses, with façades and
architectural details that make them stand out from other
developments directed at this level of income.
The same format will be taken to other metropolitan areas with
developments of between 1,000 and 10,000 units containing houses
and small apartment buildings located in residential zones. All the
housing developments will have a complete infrastructure with paved
and signposted roads, lighting, water and sewage systems, recreational
areas, stores, easy access to public transportation, and, whenever
necessary, schools and daycare centers, thereby offering a better quality
of life with enhanced safety, cleanliness, and organization. With
innovative building technology, home deliveries begin between six to
eight months after commencement of construction.
At the end of 2007 Bairro Novo’s land bank totaled a PSV of
R$ 1.1 billion. Gafisa's share was 50% of this value.
DEVELOPMENTS LAUNCHED IN 2007
Development City Number PSV
of units (million R$)
100% Gafisa 50%
Bairro Novo Cotia Cotia (SP) 1,006 37
PSV = potential sales value
30

37. GAFISA VENDAS
Gafisa Vendas expanded its scope in 2007 with the creation of a
unit in Rio de Janeiro. This subsidiary was created in 2006 in order
to set up its own sales team for selling Gafisa real estate, and today
it has an important role in the sales volume in the two cities where
it operates, São Paulo and Rio de Janeiro. It is now responsible for
closing up to 40% of the sales made in these regions.
With an expected increase in the supply of real estate based on the
increased capitalization of a number of companies in the sector as
they launched shares on the stock exchange and the greater volume
of credit availability, Gafisa Vendas was launched to maintain Gafisa’s
competitive position. With its own sales infrastructure, Gafisa is able
to manage its dependence on outsourced companies while creating
healthy competition between its agents and external real estate
agents. For this reason it does not intend to take over 100% of
the sales of its projects, but to serve as a strategic channel of contact
with the consumer.
The goal of the group is to train specialized professionals that have
access to the tools and knowledge necessary to close good deals in
a competitive environment, thereby maximizing the results of the
ventures. Professionals fully manage the sales cycle, including
administrative, technological, and routine business aspects. They are
also trained to help the customers in arranging credit. Gafisa Vendas’
activities are along three fronts:
Housing Developments – The Gafisa team shares sales areas with
professionals from the external companies.
Inventory – Professionals from the company work with a focus on
selling units not sold during the product's launch period and receive
an extra commission according to the sales performance of these
units. In 2007, the team was able to sell 100% of unsold 2005 stock
in São Paulo.
Internet – Training in the use of the Internet, which is a growing
trend in the real estate market, as a key sales instrument is provided.
Today 45% of the sales are initiated through the Gafisa site
(www.gafisa.com.br).
In coming years, Gafisa Vendas plans on expanding its operations
to other regions in the country while broadening customer service
to the company's other subsidiaries that require its services.
ANNUAL REPORT 2007
The Sector in 2007 | 31

38. ANALYSIS OF
CONSOLIDATED
RESULTS
OPERATIONAL
PERFORMANCE
In 2007 Gafisa S.A. and its subsidiaries launched 53 developments The average price per square meter of the projects launched was
with a constructed area of 2.9 million square meters, up from 32 and R$ 2,835, 7% less than in 2006, due to the inclusion of Fit Residencial
587,000 m2 in 2006. At year end, 118 developments were underway and Bairro Novo lower priced developments.
simultaneously in 15 Brazilian states.
Gafisa continued with its geographic diversification strategy and in SALES
2007 launched building developments in Manaus (state of Contracted sales grew 63% in the year and totaled R$ 1.626 billion
Amazonas), Curitiba (state of Paraná), Belém (state of Pará), Maceió (R$ 995 million in 2006). The promotion of quick asset turnover
(state of Alagoas), Santos, São Caetano do Sul, and São Paulo (state combined with the diversification of the company's portfolio, its
of São Paulo), Goiânia (state of Goiás), Duque de Caxias, Nova geographic expansion, and the favorable macroeconomic scenario
Iguaçu, Niterói, Resende, Volta Redonda, and Rio de Janeiro (state of propelled sales growth. Of the total, 33% of sales are in markets
Rio de Janeiro), Salvador (state of Bahia), and São Luís (state of outside of the cities of São Paulo and Rio de Janeiro.
Maranhão). Fit launched its products in São Paulo, Taboão da Serra, The Gafisa products are responsible for the majority of contracted
Guarulhos, and Ribeirão Preto (state of São Paulo), Salvador (state of sales (82%) followed by the AlphaVille products (14%). Fit
Bahia) Aparecida de Goiânia (state of Goiás), São Luís (state of Residencial and Bairro Novo, which focus on the lower-middle class,
Maranhão), and Anandineua (state of Pará). AlphaVille opened were responsible for 4% of sales. This is expected to increase next
housing developments in São Luis (state of Maranhão), Campo year with the expansion of these two companies.
Grande (state of Mato Grosso), Rio das Ostras (state of Rio de
Janeiro), Serra (state of Espírito Santo), Londrina (state of Paraná), and INVENTORY
Cajamar (state of São Paulo). Finally, Bairro Novo focused its efforts in The company recorded a growth of 109% in inventories (completed
Cotia (state of São Paulo). With this, the number of cities with Gafisa properties, under construction and land), up from R$ 441 million in
developments went from 21 in 2006 to 47 in 2007 and the number 2006 to R$ 924 million by the end of 2007. This result (including
of states with the company’s brand presence grew from 13 to 17. lots paid in cash, properties under construction and units) reflects
recent acquisitions of land paid in cash and properties under
HOUSING DEVELOPMENTS construction as well as the increase in completed units and the
Consolidated launches for 2007 reached R$ 2.236 billion, up 122% consolidation of Alphaville.
in relation to the 2006 total of R$ 1.005 billion. Due to the expansion
of Gafisa S.A. and its subsidiaries throughout the country, 33% of its
launches took place in new markets (23% in 2006).
32

39. Launches per business (PSV)
2%
10%
12%
76%
Gafisa
AlphaVille
Fit Residencial
Bairro Novo
Launches per business (m2)
1,976,123
726,539
204,855
47,235
Gafisa AlphaVille Fit Bairro Novo
Residencial
Includes our partner' stake in our projects
Cities with operations
47
18
9
5
3
2
02 03 04 05 06 07

40. Pre sales per company (PSV)
3% 1%
14%
82%
Gafisa
AlphaVille
Fit Residencial
Bairro Novo
Launches per region
(million R$)
2,236
774
1,005
157
428
497 134
273 743
233
06 07
New markets São Paulo – other
Rio de Janeiro – other São Paulo –
Rio de Janeiro – metropolitan area
metropolitan area
Pre sales per region
(million R$)
1,627
995
541
64
81
1 335
246 52
1
666 634
06 07
New markets São Paulo – other
Rio de Janeiro – other São Paulo –
Rio de Janeiro – metropolitan area
metropolitan area

41. NYSE Listing
March 2007

42. LAND BANK
The consolidated land bank at the end of 2007 was R$ 10.195 billion at market value,
equivalent to 19.2 million square meters of useable area. The total land bank is in line with
the Company’s policy to maintain sufficient land for new development launches for a period
of two to three years. The land bank to launch ratio is 3.4.
Of the total land bank, 56% is outside Rio de Janeiro and São Paulo, which also ensures the
company's expansion into other states. At the end of 2007, 82% of the land bank was
acquired through swaps and the number of total potential units reached was 90,271, of
which 56,911 represented Gafisa’s share.
REVENUES
Gross revenue reached R$ 1.218 billion, up 75% versus 2006. Net operating revenue
increased 77% to R$ 1.172 billion compared with R$ 664 million in the 2006 period.
Revenues are recorded in accordance with the Percentage of Completion (PoC),
LAND BANK
Company Region Future sales % as Useable area Potential Potential
(% Gafisa) exchange thousand units units
m2 (% Gafisa) (100%)
Gafisa São Paulo – Metropolitan Area 1,975 31% 846 5,514 6,013
São Paulo – Other 766 34% 293 1,954 2,194
Rio de Janeiro – Metropolitan Area 767 84% 322 1,741 2,082
Rio de Janeiro – Other 189 62% 82 699 848
New Markets 2,033 70% 1,919 7,087 10,628
Total 5,729 63% 3,462 16,994 21,765
AlphaVille São Paulo – Metropolitan Area 419 96% 3,159 3,887 6,521
São Paulo – Other 630 100% 2,620 5,175 8,795
Rio de Janeiro – Metropolitan Area - - - - -
Rio de Janeiro – Other 131 100% 449 630 1,120
New Markets 1,750 96% 8,509 10,844 20,656
Total 2,930 97% 14,737 20,536 37,092
Fit São Paulo – Metropolitan Area 447 15% 244 4,860 6,300
São Paulo – Other 266 16% 159 3,139 3,363
Rio de Janeiro – Metropolitan Area - - - -
Rio de Janeiro – Other 55 0% 34 635 705
New Markets 205 4% 108 1,676 2,903
Total 973 12% 545 10,309 13,271
Bairro Novo São Paulo – Metropolitan Area 48 0% 30 690 1,380
São Paulo – Other - - - - -
Rio de Janeiro – Metropolitan Area 230 81% 197 3,746 7,492
Rio de Janeiro – Other - - - - -
New Markets 285 89% 226 4,636 9,271
Total 563 77% 453 9,072 18,143
Total São Paulo – Metropolitan Area 2,890 66% 4,279 14,951 20,214
São Paulo – Other 1,661 90% 3,072 10,267 14,352
Rio de Janeiro – Metropolitan Area 997 84% 519 5,487 9,574
Rio de Janeiro – Other 375 91% 565 1,963 2,673
New Markets 4,272 86% 10,762 24,243 43,458
Total 10,195 82% 19,198 56,911 90,271
34

43. Land bank per company
(million R$)
563
973
5,729
2,930
Gafisa
AlphaVille
Fit
Bairro Novo
Land bank per region
(million R$)
2,890
4,272
1,661
997
375
São Paulo metropolitan area
São Paulo other
Rio de Janeiro metropolitan area
Rio de Janeiro other
New markets

44. Debt maturity schedule
(million R$)
256
150
124
90
69
08 09 10 11 12 and later
Inventory (million R$) *
924
441
304
237
04 05 06 07
(*) Properties for sale, under construction,
or completed, including land acquired

45. method of accounting by measuring progress to the creation of Fit Residencial and Bairro FINANCIAL RESULT
towards completion in terms of actual costs Novo. The Company compares general and The net financial result totaled R$ 14 million,
incurred versus total budgeted expenditures administrative expenses with launches and compared to a loss of R$ 12 million for the
for each stage of a development, while costs sales, due to the lag in accounting of revenues previous year. Financial expenses totaled
and expenses are recorded as incurred. based on utilizing the PoC method of R$ 35.3 million (R$ 65 million in 2006) and
Therefore, a substantial portion of recorded accounting. This calculation shows that the financial revenues went from R$ 53 million
revenues each quarter reflects previously company has gained productivity in relation to R$ 49 million in 2007.
contracted sales. to selling expenses.
TAXES
GROSS PROFIT EBITDA Income Tax and Social Contribution reduced
Gross revenue grew to R$ 375 million in The EBITDA totaled R$ 184 million, up 87% earnings by R$ 31 million and were up 414%
2007, up 89% in relation to 2006. The gross on the R$ 98 million in 2006. EBITDA margin on the R$ 6 million of the previous year.
margin was 32%, up 2.2 percentage points went from 14.8% to 15.7%. The higher amount recorded for 2007
in relation to the previous year. reflects an increase in the Income Tax and in
the Social Contribution proportionate to the
SALES, GENERAL AND ADMINISTRATIVE company's growth in net profit combined
EXPENSES (SG&A) with the effect of deferred income tax based
The Company’s aggressive growth strategy on the capitalization of interest.
and investment in infrastructure for expanding
future business led to an 85% increase in NET PROFIT AND PROFIT PER SHARE
SG&A expenses, which totaled R$ 192 million Net profit in 2007 totaled R$ 114 million,
(R$ 104 million in 2006). The amount also an increase of 147% as compared to
reflects the impact of the acquisition of R$ 46 million in 2006. Net margin grew
AlphaVille and Cipesa, and increased bonus from 6.9% to 9.7%. Net profit adjusted for
provisions totaling R$ 25 million, in addition public offering expenses reached R$ 144
million, as compared to R$ 76 million in
2006. Adjusted net margins were 12.3%
and 11.4%, respectively. Adjusted net profit
EXPENSES per share was R$ 1.15 in 2007, up 51%.
2006 2007
Selling expenses 51,670 79,378
General and administrative expenses 52,121 113,054
SG&A 103,791 192,432
Selling expenses / Launches 5.1% 3.6%
General and administrative expenses / Launches 5.2% 5.1%
SG&A / Launches 10.3% 8.6%
Selling expenses / Contracted sales 5.2% 4.9%
General and administrative expenses / Contracted sales 5.2% 7.0%
SG&A / Contracted sales 10.4% 11.8%
Selling expenses / Revenues 7.8% 6.8%
General and administrative expenses / Revenues 7.9% 9.6%
SG&A / Revenues 15.6% 16.4%
ANNUAL REPORT 2007
Analysis of Consolidated Results | 35

46. 36

47. BACKLOG OF RESULTS
Backlog of results, according to the PoC method, reached R$ 583 million in 2007,
up R$ 285 million or 96%.
CASH RESERVE
On December 31, 2007 the cash reserve totaled R$ 514 million, up 38% in relation to the
R$ 372 million recorded at the end of 2006.
ACCOUNTS RECEIVABLE
Accounts receivable totaled R$ 2.4 billion at the end of 2007, up 81% compared to
R$ 1.3 billion in 2006. During the year, the receivables from units completed reached
R$ 222 million, or 9% of the total.
INDEBTEDNESS
At December 31 2007, total indebtedness reached R$ 689 million, 90% of which had long-
term maturities. Net indebtedness of R$ 175 million represented 11.4% of the net equity.
BACKLOG OF REVENUES AND RESULTS (MILLION R$)
2006 2007 2007x2006
Sales to be recognized – end of period 795 1,527 92.0%
Cost of units sold to be recognized – end of period (498) (943) 87.0%
Backlog of results to be recognized 298 583 95.6%
Backlog margin – yet to be recognized 37.5% 38.2% 0.7%
DEBT COMPOSITION
Type Interest Rate 2006 2007
Debentures 1.3% p.a. + CDI 251,038 249,190
Construction Financing (SFH) 6.2 - 11% p.a. + TR 26,378 98,700
Downstream merger obligation 10 - 12% p.a. + TR 18,027 13,311
Funding for housing developments 6.2% p.a. + TR - 2,702
Working Capital 104 -105% of CDI - 203,163
Others (AlphaVille) 0.66 - 3.29% p.a. + CDI - 121,390
Total 295,443 689,356
Total Cash 266,159 514,447
Net Debt (Cash) 29,284 174,909
Net Debt / Equity 4% 11%
RELATÓRIO ANUAL 2007
ANNUAL REPORT 2007
Analysis of Consolidated Results | 37
Análise dos Resultados

48. STOCK MARKET
The main index of the São Paulo Stock Exchange (IBOVESPA) closed up for the fifth year in a At the end of 2007, Gafisa’s shares were
row. In 2007 it gained 43.6% for the year, representing the best investment in the country. also included on the Industrial Sector Index
Gafisa S.A. has been listed on the BOVESPA since 2006, under the ticker GFSA3. In 2007, the (INDX) with a weighting of 1.594%
Company became the first, and to date, the only, Brazilian Real Estate Company to be listed (2.493% during the first four months of
on the New York Stock Exchange (where its shares are traded under the ticker GFA). 2008); the Differentiated Corporate
In Brazil, Gafisa’s shares closed the year at R$ 33.19, up 4% on the previous year-end. Since Governance Share Index (IGC) with 0.690%
the initial listing, the share’s value increased 79.4% through the last day of trading in 2007. (increased to 0.924%); the Differentiated
With this result, the company's market value at December 31, 2007 was R$ 4.3 billion. The Tag Along Share Index (ITAG) with 0.686%
average share price during the year was R$ 29.79 (R$ 25.70 in 2006). The shares traded on (0.957% for January to April 2008) and the
100% of BOVESPA’s trading days during 2007 at a daily average volume of 892,357 shares Emerging Markets Index (MSCI), which
and a value of R$ 26 million. These numbers are up 108% and 148%, respectively, as includes shares from companies in emerging
compared to the previous year. markets with a relevant presence in
On the NYSE, the ADRs closed the year at US$ 37.45, up 51% from March 16, 2007, the day international stock markets.
of the NYSE listing. The average daily trading volume was 482,318 shares (at 2 ordinary
shares per ADR), and value was US$ 15.7 million. During the same period the Dow Jones
index registered an increase of 9%.
INDEXES
In 2007, Gafisa S.A. shares were included on the main index of BOVESPA, the IBOVESPA,
which consists of company shares that account for more than 80% of the number of trades
and financial volume on the spot market and which represent, on average, 70% of the
market capitalization of all the companies with shares traded on the BOVESPA. GFSA3 made
up 0.661% of the index portfolio. In the first four months of 2008, the shares accounted
GAFISA IS THE ONLY
for a 0.886% weighting.
BRAZILIAN REAL ESTATE
The shares were also included as 0.38% of the IBrX-50, which measures the total return of
COMPANY LISTED ON THE
a portfolio consisting of 50 stocks selected from among those most traded on the BOVESPA.
NEW YORK STOCK
During the first four months of 2008, Gafisa S.A. continued to participate with an increased
weighting of 0.52%.
EXCHANGE.
38

49. Gafisa (GFSA3) x IBovespa
(Base 100 = 02/16/2006)
250
200
67%
150
39%
100
50
Feb-06
Apr-06
Jun-06
Aug-06
Oct-06
Dec-06
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
GFSA3 IBovespa
Gafisa (GFA) x Dow Jones
(Base 100 = 03/16/2007)
180
160
42%
140
120
18%
100
80
60
Mar-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
GFA Dow Jones

51. SHAREHOLDER STRUCTURE
Gafisa S.A. is among the 10 companies in Brazil with the most well
distributed capital structure. On December 31, 2007, its free float
was 83.9% (111,222,516 shares). The increase of 37 percentage
points compared to the end of 2006 resulted from our second public
share offering in March 2007 as well as the sale of GP Investimentos
7.1% stake (9,634,273 shares) to the public. EIP Brazil Holdings, the
only shareholder that holds more than 5% of the company’s shares,
retains 13.8% (18,229,605 shares). EIP is controlled by Equity
International, a U.S.-based company that invests in real estate-related
international companies and is affiliated with Equity Group
Investments, one of the main investors in the real estate market in
the United States.
EIP Brazil
Holdings (Equity Free Float Treasury
International)
13.8% 83.9% 2.4%
Gafisa S.A.
DIVIDENDS
In 2007, Gafisa S.A. distributed R$ 10.9 million to shareholders
as dividends associated with the year ended December 31, 2006.
The shareholders meeting approved the distribution of
R$ 27.0 million for 2007, representing R$ 0.2084 per share,
to be paid on April 29, 2008.
ANNUAL REPORT 2007
Stock Market | 39

52. RISK
MANAGEMENT
Product – Gafisa S.A. invests in the development of technological Supply – The Supply Management area plans the acquisition
innovations and the training of qualified labor to standardize of critical materials and contraction of labor far in advance and over
procedures and deliver top quality buildings in as little time as the long term, allowing the company to improve its planning for
possible. Due to the great diversity between the different Brazilian resource allocation while enhancing negotiating power and
regions, partnerships with local companies that know the culture, establishing lasting and loyal relationships with its suppliers.
market and requirements of each site guarantee that projects are Constant monitoring occasionally leads to preventive measures such
specifically suited to each area. The Company also conducts product as raw material stockpiling or additional investments in the training
tests before launching a new development to confirm the of its own labor for strategic purposes. In anticipation of rising
acceptance of and adaptation to the specific public and region. cement prices, for example, the company decided to store sufficient
inventory to sustain its projects for a one-month period and prepared
Market – The Company’s strategy of diversifying its product a plan that allowed it to increase this inventory to three months. To
portfolio and geographic reach mitigates market risks by allowing for protect itself in terms of material and service price oscillations, Gafisa
the production of properties for different consumer profiles while includes clauses in its contracts that allow for the renegotiation of
compensating for possible cyclicality in the local economies. prices in the case rates surpassing pre-established ranges.
Gafisa also invests in market intelligence, developing its own tools
and technologies based on statistical and technical models, and is Operation – The investment in the standardization of activities
supported by a research institute to more accurately evaluate and training of labor reduces the risk generated by the significant
the market segmentation and pricing of its projects. growth of construction projects throughout Brazil. The practice of
establishing and disseminating procedures to be implemented by
all the developments makes it easier for the company to monitor
and develop projects in terms of costs, time and quality.
40

53. Photo: Amaury Simões
Environmental – The company conducts surveys on the Systems and Control – The Company is currently installing
environmental impact of its projects before they begin, prioritizing the SAP system to improve the management, access and sharing
the adoption of solutions with lower environmental impact and of information within Gafisa S.A. and its subsidiaries.
complying will all legal requirements associated with natural The introduction of the integrated management system will also
resource protection. improve data access control.
Credit – Risks are mitigated through a credit policy that the Interest Rates – An increase in interest rates would affect the
company follows repecting a maximum indebteness limit per client. company’s indebtedness and business expectations due to its effects
We also sell receivables of ready units to banks and securitization on economic activity and the cost of credit. Part of the indebtedness
companies as well as the development of consumer financing is indexed to the variable interest rate.
products jointly with finance companies, anticipating the granting
of funds and reducing its cash exposure. Insurance – The Company contracts insurance policies from
leading, financially robust Brazilian insurance companies.
Liquidity and Indebtedness – Our policy establishes the The majority of the policies cover existing potential risks from the
maintenance of liquid assets equivalent to at least 20% of very start of the projects (including material damages, business
the company’s equity. Leverage is also limited to a Net Debt / Equity interruption, engineering risks, fires, falls, landslides, lightning,
ratio not greater than 60%. gas explosions and possible construction errors) and its
specifications, limits and excesses are those common to the location
Investment – All investment-associated decisions are made by a of the development. No policies are maintained for the building
committee (See the section on Corporate Governance on page 19) after the completion of the construction.
that evaluates the expected return from each construction project
and establishes resource allocation based on this criterion.
ANNUAL REPORT 2007
Risk Management | 41

54. GAFISA BELIEVES THAT THE MAIN DIFFERENCE BETWEEN COMPANIES IN AN INDUSTRY LIKE
CIVIL CONSTRUCTION IS THE CAPACITY AND COMMITMENT OF THEIR EMPLOYEES. THIS BELIEF
LEADS IT TO BASE ITS MANAGEMENT OF PEOPLE ON THE PRINCIPLE OF MERITOCRACY,
AND TO PROVIDE ITS TEAMS WITH A WORKING ENVIRONMENT THAT ENCOURAGES
PROFESSIONAL AND PERSONAL GROWTH.
IN ADDITION TO A REMUNERATION POLICY THAT INCLUDES PROFIT SHARING, GAFISA INVESTS
IN TRAINING, IN CLOSE COMMUNICATION WITH ITS PROFESSIONALS, AND IN INITIATIVES THAT
DISSEMINATE SAFE, CORRECT DAY-TO-DAY PRACTICES. IT ALSO ENCOURAGES PARTICIPATIVE
MANAGEMENT THROUGH ITS BEST PRACTICES PROGRAM.
THIS WAY OF MANAGING ITS MAIN ASSET – PEOPLE – HELPED THE COMPANY BECOME ONE
OF THE 60 ABOVE AVERAGE COMPANIES IN THE PUBLICATION VALOR CARREIRA OF THE
NEWSPAPER VALOR ECONÔMICO, AMONG 145 ANALISED COMPANIES.

56. 44

57. MANAGEMENT
OF PEOPLE
Gafisa S.A. bases its management of people on the principle of meritocracy. It believes that
in an industry like real estate development, where a good portion of the products and
services are common to all companies from the sector, the main differential is the capacity
and commitment of employees. Thus, the Company seeks to provide an environment that
fosters professional growth in all areas, attributes responsibilities and expects employees
to make every effort to reach their targets. This way of interacting with its internal public
makes the company a reference point in the training of highly qualified professionals.
Talent retention is another important company principle. So much so that 50% of its
directors, 60% of its managers and 70% of its coordinators began as interns. This loyalty
is explained by the significant investment made in selecting individuals that fit the company’s NUMBER OF EMPLOYEES
entrepreneurial and results-oriented culture, ensuring a low turnover rate.
2006 2007
These differentials also combine with participative management, carried out by means of
Gafisa 530 873
the Best Practices Program, in which employees suggest initiatives to improve procedures Gafisa Vendas - 26
and support the achievement of good results. In 2007, involvement in the program more Fit - 77
than tripled to a total of 120 proposals. Due to the large volume, they were divided into Bairro Novo - 52
five categories (Cost, Deadline, Safety, Morale and Environment), with the three top initiatives AlphaVille 153 161
Cipesa - 8
in each category receiving an award.
Total 683 1,197
This way of managing its main asset – people – helped the company become one of the
60 Above Average Companies in the publication Valor Carreira of the newspaper Valor
Econômico, based on the criterion of favorable employee responses (78% positive).
EMPLOYEE PROFILE
The increased number of professionals at the company in 2007 mirrored the strong
performance of the real estate sector and the company during the year. There were a
total of 1,197 employees, up 75.3% compared to 2006. Of this total, 45% have a university
degree and 79% are between 21 and 40 years of age. The turnover rate recorded for the
ANNUAL REPORT 2007
year was 19.6%.
Management of People | 45

58. TALENT ATTRACTION AND RETENTION
One of the main triumphs of Gafisa S.A. is its capacity to identify, attract and retain talent.
We offer three programs for this purpose.
Interns – Each six months, a group of 50 to 60 young people are trained through the
internship program, with a retention rate of approximately 90%. The work model allows
these people to come into early contact with the company culture. Under supervision, they
are allowed to see and per form activities that are essential to the day-to-day of the building
and construction industry, which also streamlines the learning process. In 2007, some 500
students applied for the internship openings, 100 of whom were accepted. At the end of
the year, a total of 283 were involved with the program.
Trainees – Young people who join the trainee program are hired by the company. With
the increased scope for candidate selection in 2007, 17,000 people registered for the
25 openings offered by the program, one of the three largest in the country. The goal for
2008 is to once again be among the largest trainee programs in Brazil.
New Market Engineers – The combination of the company’s strategy of advancing its
operations into regions outside the Rio–São Paulo axis together with the growing demand
for qualified labor prompted the launch of the program that attracts experienced
professionals in New Markets. The selected individuals undergo a period of immersion at the
company, ranging from four to six months, in order to assimilate its culture and learn its
technical and quality standards. In 2007, the company recruited 17 new professionals.
ATTRACTING YOUNG TALENT
2006 2007
Enrolled in internship program 350 1,000
Internship positions offered 70 186
Percentage of interns hired 79 99
Enrolled in the trainee program 17,000 17,000
Hired trainees 12 25
REMUNERATION
The company’s remuneration policy includes profit sharing. Monitoring of progress toward
established targets takes place on three levels. The first, the Eliminatory Targets, pertains to
the company’s global results and is a pre-requisite for the second, the Corporate Targets,
which relate specifically to each business (Gafisa S.A. and subsidiaries). There are also the
Individual Targets, which include from four to eight goals per person per year and are
evaluated every six months to determine the value to be received.
In 2007, the sum distributed as profit sharing totaled R$ 25.4 million, 52.9% more than the
previous year (R$ 16.6 million). A total of 70% of the company’s employees received a bonus.
Another program underway is Stock Options, available to all employees. Based on the
calculation of results from the year and the situation of each professional’s targets progress,
the company elects those who can participate in the share purchase option. In 2007, the
company granted this benefit to 48 employees.

59. TRAINING
To encourage the employees’ quest for
professional development, the area
managers meet every six months with each
of their subordinates to discuss the need to
develop the skills desired by the company
and demanded by the job function. The aim
is to specify targets to be met and establish
the means by which results can be achieved.
In 2007, the company also initiated
leadership training initiatives.
In the area of Construction – which receives PROFESSIONAL DEVELOPMENT
the largest volume of investment in training
–, the professionals are prepared to act as 2006 2007
Professional development hours
development project managers and are
per employee per year 19 24
trained in the operating procedures
established by the company. Value invested in professional development
In 2007, the company also invested in the and education (thousand R$) 180 250
training of professionals who work in
construction areas considered to have a
labor shortage, thereby initiating a process
to deepen the reach of such activities. SAFETY employees and 10% of outsourced
The company seeks to make its workplaces employees receive this training.
COMMUNICATION safer and more pleasant by sharing Every six months, safety technicians
Gafisa S.A. seeks to maintain close information on correct practices and by conduct inspections to survey safety-related
communication with its professionals, constantly developing technologies that indicators. The data are then tabulated on
and has adopted the following channels: reduce employee exposure to accidents. a monthly basis and a ranking is released
Internal Newspaper – The publication, The biggest potential for accidents is on for each stage of the construction project.
which publicizes the main events at the construction sites. To minimize such On a scale of 0 to 10, the average obtained
company and is distributed to all employees, occurrences, all company and outsourced in the 2007 ranking was 7.1 points,
was restarted in 2007. employees participate in integration training representing an improvement on the
Intranet – All employees have access to and lectures before starting construction previous year, when the average was 6.0.
the Intranet, including those who work on work. The safety area is responsible for The company also constantly studies ways
construction sites, where IT equipment is providing lectures on practices that must be of enhancing the safety of its construction
also installed. adopted in relation to risks, preventive projects, developing technologies to
Notice boards – Located at strategic actions, collective protection and personal enhance efficiency to address the increase
points in all company units. protective equipment. The courses take in the volume of developments. One
place four times per week on average due to enhanced safety solution adopted during
the high turnover of outsourced the year was a steel structure with metal
professionals on construction sites. or fiber screens to replace the old models
At least one employee is trained from each made from wood and nails.
construction site to provide first-aid
assistance. The company also trains a group
ANNUAL REPORT 2007
of employees to fight fires: 50% of company
Management of People | 47

60. CUSTOMER RELATIONS
With the motto “Constructing the Best Place in the World for You,” COMMUNICATION
Gafisa S.A. has a client base of more than 48,000. The company Gafisa maintains several communication channels with consumers.
cultivates a close relationship with this public to enhance brand loyalty All of the companies of the group offer Customer Service and
and foster spontaneous promotions of development projects. This has Internet portals that allow for contact through chats and the Contact
a strategic purpose, since the relationship cycle is long: it starts with Us link, and provide information on projects, services and billing, such
the launch of the construction project and extends for at least five as the printing of a second copy of a financing payment slip.
years after the delivery of the keys based on the guarantee the During launch periods, hot sites are created for each building project
company offers the building project and the cash flow. with details on the construction work. The client can also contact
Satisfaction surveys are conducted during the different stages the company using dedicated telephone numbers made available
of the project to monitor the clients’ impression of the company. for each project.
In 2007, the company adopted another survey for property buyers The company also offers the Gafisa Way magazine that is distributed
who have been living in the new development for a year. to clients and sold at newspaper stands and includes tips on
The results obtained, covering topics like customer assistance, decoration and home-related topics.
quality, maintenance and services, feed into the elaboration of AlphaVille Urbanismo also offers the magazine Vero AlphaVille,
strategies for improving the business. distributed free to clients and sold at newspaper stands across the
country, as well as the AlphaVida Newsletter of regional interest,
which orients the homeowners during the transition phases when
they become responsible for administering their own building.
An online version is sent to clients starting with the launch and
extending until the conclusion of the infrastructure projects, so that
they can follow the timeline. The company also publishes Consumer
Rights brochures – with advise on precautions to take before
THE COMPANY’S RELATIONSHIP purchasing a lot – and Procedures and Technical Norms for Projects
WITH ITS CUSTOMERS IS and Construction Works, with technical information and guidelines
SUMMED UP IN THE SLOGAN for building residences.
“CONSTRUCTING THE BEST
PLACE IN THE WORLD FOR YOU”.
48

61. Decorated showrooms, assembled at the
sites where the construction will take place,
are another form of contact with the
consumer. Gafisa is dedicated to creating
spaces that accurately represent the project,
representing the real dimensions of each
unit. It also makes it a priority to be clear
with consumers which items are included in
the price and those that will be present in
the building upon its completion.
ADVANTAGES
The Gafisa Open Door Club is another tool
for building relationships and loyalty,
offering access to services and benefits in
the cities in which the company has projects.
Users can search for the participating
establishments online at the Open Door
Club Portal. There are 51 partners registered
with the Gafisa Open Door Club that offer
promotions in three different areas:
Apartments (stores offering decorative
design objects and art galleries, among
others), Quality of Life (gyms, florists,
language and IT schools) and Quick Services
(including laundromats).
AlphaVille clients also enjoy advantages.
To promote social and sports exchange
between AlphaVille Club members, the
company establishes partnerships at units
all over Brazil so that partners can frequent
clubs of the other building projects at no
additional cost.
ANNUAL REPORT 2007
Customer Relations | 49

62. SUPPLIER RELATIONS
The Gafisa S.A. supplier portfolio includes SELECTION One criterion evaluated during the
608 companies with which the company Supplier selection includes the evaluation contracting process is the diversification
seeks to share its values and best practices. of both technical and financial aspects. In of the source of client revenue. The selected
Of these partners, 101 or 17% were line with the geographic expansion of its company cannot have more than 49% of
responsible for contracts totaling more activities, the company aims to register its earnings associated with its agreement
than R$ 1 million in 2007. companies that can provide labor or products with Gafisa.
Supply management prioritizes the purchase in the regions in which it will operate. Another stipulation is to include contractual
of materials and contracting of services Months before launching building projects clauses that require the participation of
considered critical to the building projects. in a new market, the Operations and supplier specialists in the technical planning
In 2006, the company developed a planning Technology Development team visits the sites of the construction projects, preventing
system that allows it to plan needs two to to identify new suppliers. After this initial incorrect calculation of products or services.
three years in advance and identify possible analysis, the company invites them to Many contracts also require the development
supply bottlenecks. It uses this information participate in an official approval process to of a certain level of innovation that adds
to gain leverage for negotiating with verify work conditions, quality and capacity productivity gains associated with the
suppliers and seek their loyalty, since it offers to meet company requirements. Suppliers are product or service to be offered, in order to
long-term, large-scale partnerships. classified with grades ranging from A to D, encourage suppliers to seek best practices.
and for the companies that show potential
but require modifications, the company CONDUCT
develops an Action Plan with established The Code of Ethics is made available to all
deadlines and evaluates them once again supplier companies and they are alerted that
after a 12-month period. If the necessary they must respect its contents under penalty
adaptations include training, Gafisa S.A. of termination of the contract. Furthermore,
itself offers such support. all contracts include clauses associated with
There are also analyses of the financial status the prohibition of child or slave labor.
of the main suppliers through financial The company also requires that suppliers
statements, and the existence of any claims be up-to-date on their labor and social
against the companies is examined. security obligations.
50

63. An Outsourcing Committee with professionals from the Supply, sustainability of small and medium-sized companies by sharing
Construction, Operations and Technology Development, Legal and corporate social responsibility practices. Companies from seven
Human Resources areas monitors these aspects and checks for different economic sectors, including civil construction, participate
possible risks. The group receives the support of a specialized in the project. The target set for a three-year period, to end in 2008,
company to monitor and register the documents associated with is to increase the productivity of the participants by 5% by
the outsourced employees. incorporating and increasing socially responsible management in the
internal processes and in the relationship with their parties of interest.
TEAR The results are evaluated based on Ethos Corporate Social
Gafisa S.A. serves as the anchor company for TEAR – Weaving Responsibility Indicators and on fulfillment of the Brazilian
Sustainable Networks, an initiative of the Ethos Institute and the Sustainability Evidence Matrix, developed by the institute itself
Inter-American Development Bank Multilateral Investment Fund in partnership with the organization SustainAbility and the
(FUMIN). The project aims to enhance the competitiveness and International Finance Corporation (IFC).
ANNUAL REPORT 2007
Supplier Relations | 51

64. 52

65. SOCIO-
ENVIRONMENTAL
ACTIONS
In order to manage and coordinate its social and environmental projects, Gafisa S.A. created THE COMPANY’S SOCIO-
a Social Responsibility Committee in 2007, consisting of representatives from different areas. ENVIRONMENTAL PROJECTS
During the integration process for new employees, the company makes an effort to transmit INCLUDE THE DISSEMINATION
messages internally that encourage a social and environmental commitment, as well as to OF MESSAGES THAT
publicize its projects. ENCOURAGE THE WHOLE
SOCIETY IN ITS COMMITMENT
ENVIRONMENT
TO THE ISSUE.
The company views its contribution to preserving natural resources not only a duty, but a
fundamental requirement for increasing the value of its brand and business. By adopting
environmentally correct measures, it also distinguishes its brand due to the increasing
consumer concern with ecological regulations and the preference for building projects
that allow for a greater contact with nature.
Gafisa S.A. and its subsidiaries comply with all legal guidelines associated with the
environment and strive to exceed them. They perform complete monitoring of the impact
caused by their projects in order to seek alternatives to minimize such impact and implement
compensatory actions. This process begins during the licensing phase and continues with
monitoring and environmental education projects at the construction site, as well as initiatives
that are implemented after installation involving residents and the surrounding community.
Of note among the adopted environmental measures is the selective waste collection at all
of the company’s offices and construction sites. The idea is to promote proper waste
management by reducing the volume produced, reusing materials, practicing selective
collection and, later, recycling. As with the 5S program, which has been introduced at all
company units, selective collection results in cleaner and more organized areas.
The waste that accumulates at the construction sites is sold and converted into awards for
the outsourced employees who work there. The construction project engineer is responsible
for making contact with the selective collection company to schedule the removal of
ANNUAL REPORT 2007
the materials, while the 5S “mayor” of each building project trains the employees
whenever necessary, in addition to the publicizing, raffling and delivery of the awards
earned with the funds originating from selective collection.
Socio-environmental Actions | 53

66. In the AlphaVille building projects, selective collection programs for
solid waste take place with the participation of cooperatives and
material collectors so that the communities located near the projects
have a means for generating income.
The rational use of non-renewable resources is a priority at the
AlphaVille locations, and include rainwater collection basins adopted
during a series of projects in Paraná, São Paulo and Rio Grande do
Sul, as well as water reuse systems for non-residential purposes
in projects in Rio Grande do Norte and São Paulo.
In 2008, Gafisa plans to adopt the Sustainable Construction Site
program that will combine several different actions to minimize the
environmental impact of its building projects by promoting measures
such as the use of recycled material to set up the site, the use
of rainwater and runoff water and the use of gas for showers.
Certain initiatives have already been implemented, such as the reuse
of water to wash trucks and the construction site itself.
CONSERVATION AREAS SUSTAINABLE SOLUTIONS
At AlphaVille building projects, an average of 4% of the value of the One of the solutions the company uses to minimize the
development is directed to the environment. The low demographic environmental impact of its activities is to study the adoption of new
density that characterizes the projects means that they have a procedures and technologies that guarantee respect for nature both
significantly higher percentage of green and conservation areas. during and after the construction projects.
For example, at AlphaVille Burle Marx, in Santana do Parnaíba The 2007 delivery of the Eldorado Business Tower represented a
(São Paulo), the green and conservation areas correspond to 71% milestone in this sense. The construction project is the fourth
of the total. In Pinhais (Paraná), AlphaVille Graciosa maintains Brazil’s building project in the world to receive the Leed® CS 2.0 Platinum
largest urban araucaria reserve, with green and conservation areas seal (Leadership in Energy and Environmental Design) granted by the
of more than 1 million square meters, and building lots U.S. Green Building Council, due to the set of sustainable solutions
corresponding to only 37% the total area. adopted at the project. The criteria for certification were developed
in cooperation with scientists, engineers and architects from all over
the world, and the seal is the most widely accepted for the
orientation and measurement of sustainable construction.
At Eldorado, the introduction of new technologies allowed for a
significant reduction in the consumption of raw materials like water
and energy, both during the construction project and after its
conclusion. While the average condominium cost at a building of
GAFISA SEEKS TO ADOPT the same standard runs around R$ 15.00 per square meter, it is
practically half this amount at the new building project.
TECHNOLOGICAL SOLUTIONS THAT
ENSURE RESPECT FOR THE
ENVIRONMENT.
54

67. TECHNOLOGIES
Among the solutions adopted at Eldorado are the storage of condensed water from the air
conditioners and the collection of runoff water; the installation of basins with dual flush
valves that allow the user to control the water flow; air conditioning system divided by sector;
and a degenerative braking system, a pioneer in Brazil, that transfers energy dissipated
during the descent of one elevator to another that is going up. During the implementation
of the project, Gafisa contracted 47% of the raw materials from companies located within
an 800-kilometer (500-mile) radius of São Paulo, helping to reduce the emission of
pollutants. It also introduced a chapter in its Owner’s Manual with tips on how to contribute
to environmental conservation on a daily basis.
Gafisa also created a study group consisting of in-house engineers to evaluate the viability
of replicating the solutions adopted at Eldorado at its new residential housing projects.
THE ELDORADO BUSINESS
TOWER, DELIVERED IN 2007,
WAS THE FOURTH BUILDING
PROJECT IN THE WORLD TO
RECEIVE THE LEED® CS 2.0
PLATINUM SEAL DUE TO
THE SET OF SUSTAINABLE
SOLUTIONS ADOPTED AT
THE PROJECT.
RECOVERY OF DEGRADED AREAS
AlphaVille has earned a reputation for its commitment to developing actions in favor of the
environment in the regions in which its building projects are located.
In 2007, two projects in particular demonstrated this concern. The first was developed in
Campo Grande (Mato Grosso do Sul), where a municipal park was constructed to
compensate for an environmental degradation in the region surrounding the building project.
A pit measuring 1,200 meters (3,900 feet) across and 17 meters (56 feet) deep that
originated from the incorrect measurement of a rainwater gallery was replaced by three lakes
measuring 13,000 square meters (139,900 square feet), complete with vegetation and trees,
in addition of an Environmental Education Center for children and adults from the
community. Landowners from the area contributed to the R$ 2 million investment.
A similar action was implemented in Paço do Lumiar, in the metropolitan area of São Luís
(Maranhão). On the land that would be used for AlphaVille lots, a similar type of erosion was
ANNUAL REPORT 2007
causing degradation of the mangrove forest located in the surrounding area. Without this
project, the ecosystem could not have recovered, as the rainwater and the landslides were
filling a large area of the swamp with sand.
Socio-environmental Actions | 55

68. SOCIAL ACTIONS
The commitment to the communities with which the company relates
is reflected through a series of actions that contribute to improving
the quality of life of current and future generations. In 2007, the main
corporate initiative was the Community Week, promoted during the
last week of November in São Paulo and Rio de Janeiro and involving
more than 100 employee and supplier volunteers. Each measure
included in Community Week was coordinated by one member of the
Sustainability Committee, bringing together employees and their
family members for a Saturday full of activities. These included:
revitalization of the common areas of the César Martinez State School
in São Paulo and the Santa Rita de Cássia Orphanage in Jacarepaguá,
Rio de Janeiro; blood donations; planting of seedlings; Christmas gift
bags and fundraising for the NGO Friends for Good, as well as
Coloring the Project, an action undertaken as part of the Paço da
Águas pilot project.
The company also developed initiatives directed at the communities
from regions near the building projects constructed in São Paulo.
One of these is the revitalization of Acapulco Square in Santo Amaro
(southern zone of São Paulo), benefiting residents from the region
with a leisure area. There were also presentations by clowns and the
Cocoricó Group for children from the local public school and
residents located near the Miosótis housing development, also
located in the southern zone of the capital. The What is Magic to
You? contest held among students from Elvira Brandão High School
in Chácara Santo Antônio, awarded the three authors of the best
answers with educational toys and scholarships.
THE COMMUNITY WEEK, PROMOTED IN 2007,
INVOLVED EMPLOYEES AND SUPPLIER
VOLUNTEERS IN REVITALIZATION OF THE
COMMON AREAS, PLANTING OF SEEDLINGS
AND DONATIONS TO COMMUNITIES.
56

69. ALPHAVILLE FOUNDATION Computer Labs – The labs are designed to
The AlphaVille Foundation was created in promote citizenship and digital inclusion
2000 with the mission of promoting and among the residents of Parque Imperial in
developing the communities located near the Barueri and assist 100 young people. They
residences constructed by the company. The are maintained in partnership with the
projects prioritize social inclusion based on Barueri Social Fund, the company Assinco
local talents and the sustainable use of Informática and the NGO Digital Thinking.
natural resources. The institution maintains In addition to these initiatives, the company
its own management, based on the also supports projects in the cities of
company’s growing involvement and Colombo (metropolitan are of Curitiba –
commitment to socio-environmental causes. state of Paraná), Santana de Parnaíba (state
The entity has developed a socially of São Paulo), Barueri (state of São Paulo),
sustainable technology methodology and Cotia (state of São Paulo), Salvador (state of
elaborates its projects so that they can Bahia), Recife (state of Pernambuco),
eventually be managed by the communities Fortaleza (state of Ceará) and Cuiabá (state
themselves. In 2006 and the first half of of Mato Grosso).
2007, the foundation created five new The AlphaVille Foundation also supports
projects, in addition to the 32 already volunteer activities and helps raise the
developed during its seven years of existence. awareness of its employees as to preserving
AlphaVille Brasil School Neighborhood the environment. With the Eyes Wide Open
(Barueri) – Developed in partnership with project at the São Paulo office, the company
the City School Apprentice Association, this obtained reductions of 33% in water
project focuses on the education and consumption, 20.9% in electricity and 30%
training of communities by strengthening in paper. During the Day to Make a
relationships between the community and Difference, 280 employees participated
the school. Public squares, parks, alleys, in community improvement projects.
museums, theaters and workshops, among In Curitiba (Paraná), the activities included
other sites, can be transformed into the remodeling of the park, outer area
classrooms. The pilot program began in the and computer rooms, as well as the planting
community of Jardim Imperial, in Barueri, of trees and flowers at the Graciosa
assisting 1,600 children and young people Community Center. In Salvador (Bahia),
per week. The project is currently being the company made improvements to the
extended into the city of Colombo (Paraná). Bairro da Paz Community Center. In Barueri
Ecological Schools – Designed to (São Paulo), it remodeled the park and
encourage a sustainable relationship painted the walls of the Planeta Criança
between the environment and community. daycare building. In Carapicuíba,
The proposal is to engage children and improvements included the remodeling of
adolescents, making them multipliers of the cafeteria, painting and repair of four
concepts, and offer the community playgrounds, planting of a garden and
ecological and social orientation and training. remodeling of the sports court at the Santa
IT Democratization Committee – Training Terezinha Shelter, home to 156 children.
from the AlphaVille IT and Citizenship
School (EICA) in partnership with the NGO
ANNUAL REPORT 2007
Committee for IT Democratization. The
entity assists 200 people in the city of
Santana do Parnaíba and 150 in Fortaleza.
Socio-environmental Actions | 57

70. CORPORATE
INFORMATION
BOARD OF DIRECTORS ADDRESSES
Gary Garrabrant – Chairman Gafisa S.A.
Thomas McDonald Avenida das Nações Unidas, 8.501 – 19º floor – Ed. Eldorado
Caio Racy Mattar (1) São Paulo - SP CEP: 05425-070
(1)
Fabio Schvartsman Phone: (55 11) 3025-9000
Gerald Dinu Reiss (1) www.gafisa.com.br
Renato de Albuquerque
Richard L. Huber (1) Gafisa Vendas
(1) Independent members Avenida Pedroso de Moraes, 1.553
São Paulo – SP – CEP: 05419-001
EXECUTIVE OFFICERS Phone: (55 11) 3094-4900
Wilson Amaral de Oliveira – CEO www.gafisa.com.br
Alceu Duílio Calciolari – CFO and Director of Investor Relations
Odair Garcia Senra – Director of Institutional Relations AlphaVille Urbanismo S.A.
Rodrigo Osmo – Director of Business Development Av. Cauaxi, 293 – AlphaVille Empresarial
Rodrigo Ferreira Coimbra Pádua – Director of People and Barueri – SP – CEP: 06454-020
Management Phone: (55 11) 4197-1900
Nelson Martinez – Director of Planning and Controll www.alphaville.com.br
SUBSIDIARIES/UNITS Fit Residencial
Antônio Carlos Ferreira Rosa – Managing Director of Gafisa Rua Dr. Eduardo de Souza Aranha, 153 – 1º floor
Incorporadora São Paulo – SP – CEP: 04543-904
Mario Rocha Neto – Managing Director of Gafisa Construção Phone: (55 11) 3841-4100
e Engenharia www.fitresidencial.com.br
Julio Cesar Gomes Pedro – Managing Director of Gafisa Vendas
João Audi – Managing Director of AlphaVille Urbanismo Bairro Novo
Newman Brito – Managing Director of Fit Residencial Rua Paes Leme, 524, 13º floor
Roberto Senna – Managing Director of Bairro Novo São Paulo – SP – CEP: 05424-904
Phone: (55 11) 3598-9000
www.bairronovo.net
58

71. INVESTOR RELATIONS SHARE TRADING CODES
Avenida das Nações Unidas, 8.501 – 19º floor – Ed. Eldorado BOVESPA: GFSA3
São Paulo – SP – CEP: 05425-070 NYSE: GFA
Phone: (55 11) 3025-9297
Fax: (55 11) 3025-9438 INDEPENDENT AUDITORS
E-mail: ri@gafisa.com.br PriceWaterhouseCoopers
Av. Francisco Matarazzo, 1.400
DEPOSITORY INSTITUTIONS São Paulo – SP – CEP: 05001-903
Banco Itaú S.A. Phone: (11) 3674-2000
Diretoria de Serviços para o Mercado de Capitais Fax: (11) 3674-2077
Av. Eng. Armando de Arruda Pereira, 707
São Paulo – SP – CEP: 04344-902 CUSTOMER RELATIONS
Phone: (55 11) 5029-1809 Phone: (55 11) 4002-1001 (São Paulo)
Fax: (55 11) 5029-1917 0800-77-GAFISA (Rio de Janeiro and other locations)
Citibank N.A.
388 Greenwich Ave
Nova York – NY
10013
Phone: 1-877-248-4237
Companhia Brasileira de Liquidação e Custódia – CBLC
Rua XV de Novembro, 275 – 6º floor
São Paulo – SP – CEP: 01013-001
Phone: (55 11) 3233-2178
Fax: (55 11) 3233-2053
ANNUAL REPORT 2007
Corporate Information | 59