Strategy and Competitive Advantages

Competitive Advantages

EVEN´s competitive strengths include:

Operations in Brazil’s most important markets. EVEN is positioned in what it believes are Brazil’s most important markets in terms of income levels and housing demand: São Paulo, Rio de Janeiro, Minas Gerais and Rio Grande do Sul, cities that combined account for 50% of the country’s GDP as of 2015. In these cities the Company has strong and well developed operations that are supported by excellent intelligence of local markets and draw on its long experience and strong reputations in these regions. This extensive knowledge of the specific characteristics and regulations of each market allows Even to more efficiently obtain approvals and licenses and develop its real estate projects.

Efficient and vertically integrated business model. Even’s real estate development activities are fully integrated, enabling it to manage and control all stages, including the lot acquisition, planning, development, sale and construction processes, with teams that are specifically trained in each of these stages. The Company’s involvement in all stages of its business enable it to efficiently control and maintain the quality of all its real estate developments, while maintaining high execution capacity, which effectively adds value to its brand and contributes positively to its results. One of the main factors contributing to the success of our vertical business model is that fact that since 2006, Even has maintained a SAP program for its consolidated operations, which integrates departments and branch offices and automates the storage of all the information involved in its business.

Diversified product base and proven execution capacity. Even has a long history of successfully developing projects in various different segments: affordable, emerging, middle, upper-middle, and high income segments, and in the commercial segment, using different brands to target these publics. As a result, the Company believes it can take advantage of the best business opportunities in each location, maintaining the flexibility to meet potential demand and reduce its exposure in specific segments as needed. Diversification allows the Company to offer the products bested suited to the different income levels with the best cost-benefit relationship for its clients.

Adoption of sustainable and innovative practices. The company believes that its commitment to sustainable and innovative practices enables it to create a solid foundation for the long-term growth of its operations. These practices have positive impacts on its product development, image and brand strength, and support higher production efficiency and cost reductions. In 2011 Even was the first company in the industry to disclose its carbon inventory and share its methodology with the market.

Recognized and committed management aligned with a management model based on meritocracy. Even has a highly professional team of executives who are committed to sustainable development and maximizing results. The Company’s management model seeks to align the interests of its management with those of shareholders by adopting a culture of meritocracy and a variable compensation model that rewards growth, results, cost efficiency and innovation. These characteristics support the achievement of consistent results, aligning growth with due attention to the risks inherent to the Company’s activities, which is reflected in the Company‘s low turnover.

Strategy

EVEN believes that by implementing their principal strategies described below, the Company will be able to enhance their growth, increase their market share and consolidate their position as one of the largest real estate developers and builders in Brazil.

Maintain leadership in its markets. Even seeks to be a leader in all of markets in which it operates. Based on its experience in São Paulo, it believes that local focus and knowledge bring operational benefits such as: access to the best lots, bargaining power with local suppliers, easier recruiting of talent and the interest from the best sales teams. This strategy allows Even to create value in each market in which it operates by fully applying its vertical and diversified operations over a long time horizon.

Maximize the velocity of developments, launches and sales. Even believes that its growth is based on its capacity to accelerate the cycle for developing, launching and selling its projects. The Company plans to develop its projects as quickly as possible, by speeding up the prospecting of new lots, using more efficient structures to sell its products and accelerating the sales of its units. To this end, we prospect lots with PSVs that makes possible fast launches, reducing the period for government approvals and product development. Even believes that this posture minimizes the financial cost of maintaining a land bank and mitigates the relative risks of reversals in market trends, enabling the sale of projects that are in line with current market demand.

Focus on financial discipline and cash management. Even seeks to support its operations with the most efficient funding alternatives, meeting the financial needs of its projects in a manner consistent with their long-term nature. The Company coordinates timing of launches with the financial guarantee of its construction projects. Even also believes that an important factor in the success of its operations is the correct allocation of the most adequate source of funding for its working capital. The Company‘s operates in a widely distributed manner, maintaining long-term relationships with various sources of funding, such as banking institutions, capital markets, financial co-developers and shareholders. Even also seeks to extend the benefits this broad reach to its homebuyers by offering them the best financing conditions.