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Arbitration Chamber: Market Arbitration Chamber established by the Bovespa for resolution of disputes between companies and its investors.
Appropriate (on the balance sheet) and not appropriate accounts receivables: the balance of accounts receivable from units sold but not yet completed is not fully reflected as assets in the financial statements, since the balance is recognized according to the development of the construction ("PoC method"), so only the portion that had developments in PoC (physical development) is appropriated (recognized) on the balance sheet.
Backlog Margin and Unearned Income Margin: equivalent to "Unearned Income" divided by "Revenue to be Recognized" to be recognized in future periods.
BM&FBovespa: São Paulo Stock Exchange (Bolsa de Valores de São Paulo).
BR GAAP: Accounting practices adopted in Brazil, or Brazilian GAAP or Brazilian Corporation Law.
Built to Sit: Customized construction
Cancellation (or termination): disruption or cancellation of a contract of sale.
Cash Burn: variation between the net debt of certain periods (when the rate is negative, it indicates the generation of cash).
CBLC: The Brazilian Settlement and Custodial Company (Companhia Brasileira de Liquidação e Custódia).
CCB (Bank Credit Note): bank notes secured by bank loans.
CEPAC - Certificates of Potential Additional Construction: bonds issued by municipal governments, used as means of payment for the granting of Additional Building Rights within the perimeter of an Urban Operation. Each CEPAC is equivalent to a certain amount of m² for use in additional construction area or modification of uses and parameters of a property or project. Through these instruments, the municipal government coordinates the city’s urban planning and finances public projects.
Company or Even: Refers to Even S.A.
CVM: The Brazilian Securities Commission (Comissão de Valores Mobiliários).
Duration: indicator (usually measured in years) that measures the sensitivity of the value of a bond to variations in interest rates on the market.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): EBITDA is net earnings before net financial income and expenses, income tax and social contribution, depreciation and amortization. It is a non accounting metric that aims to measure the potential of the company’s cash generation, but it is not a reference to cash generation of the construction industry precisely because of the "PoC method".
GDR or GDRs: Global Depositary Receipt
GDS or GDSs: Each GDS will represent one share and will be evidenced by a global depositary receipt, or GDR. The depositary for the GDSs is The Bank of New York. The GDSs offered pursuantto Rule 144A will be evidenced by Rule 144A GDRs issued pursuantto the Rule 144A deposit agreement. The GDSs offered pursuantto Regulation S will be evidenced by Regulation S GDRs issued pursuantto the Regulation S deposit agreement. The shares represented by GDSs will be deposited with Banco Itaú, as custodian for the depositary in Brazil. Payment for the GDSs may be made only in U.S. dollars.
Gross margin ex-financing or ex-capitalization: Gross margin excluding the effects of financial charges recognized under costs (corporate debt and financing). It is used to evaluate the actual operating margin without considering the debt cost.
GVS: General vale of sales is the actual sales price of all the units developed by Even
IBGC: Brazilian Institute of Corporate Governance.
IBGE: Brazilian Institute of Geography and Statistics.
IGP-M: The General Market Price Index, inflation index calculated and published by the Getúlio Vargas Foundation (FGV).
INCC: Construction Costs National Index, housing construction costs national index, calculated and published monthly by FGV.
Inventory Margin: equivalent to expected gross margin for the units still in the inventory (ie, that have not been sold).
IPCA: Broad Consumer Price Index, inflation index calculated and published monthly by IBGE.
IFRS: International Financial Reporting Standards
Launched GVS: Launched general vale of sales is the potential sales price of all the units developed by Even during any period, based on the asking price for such units
NPL (non-performing loan): non-performed direct credit to consumers. The NPL includes the entire portfolio at risk, not only the matured portion.
PoC Method: in accordance with BR GAAP, revenues, costs and expenses related to real estate projects, are recognized based on the costs incurred accounting method (Percentage of Completion - PoC), measuring the progress of the construction work by the actual costs incurred versus total budgeted expenditures for each phase of the project.
Real, Reais or R$: refers to the Brazilian real, the official currency of Brazil
RET - Special Tax Regime: simplified system for the payment of taxes, resulting in a joint incidence of income tax, social contribution, PIS and COFINS in the amount of 1% to 4% (according to the exonerations of December 2012) of the total monthly revenues, depending on the type of project. It is a government incentive aiming at the adoption of Asset Appropriation in the merger proceedings to which the RET is linked.
Regulation S: Rule promulgated under the U.S. Securities Act of 1933, as amended, or the Securities Act, related to institutional and other investors outside the United States and Brazil that are not U.S. persons.
Revenue to be recognized (Sales to be Recognized Results): due to the recognition of revenues and costs according to the progress of the construction work ("PoC Method") and not at the time of the contract signing, we recognize development revenue and expenses of contracts signed in future periods. Therefore, the balance of the Revenue to be Recognized corresponds to revenues less costs to be incurred in future periods from past sales.
Rule 144A: Rule promulgated under the U.S. Securities Act of 1933, as amended, or the Securities Act, related to qualified institutional buyers of the United States.
Sale and lease back: Acquisition for lease to the seller
SEC: Securities and Exchange Commission.
Securitization: financial operation aimed at reducing the risks faced by the Company. From the Company‘s point of view, it corresponds to the sale of receivables (non-received installments from the sale of the projects’ units) to securitization companies.
SOS: sales over supply ratio.
Swap: land purchase system in which the landowner receives a certain number of units (physical swap) or a percentage of the project’s revenue to be built in the area of his/her property (financial swap).
Transfer: amount to be financed by the bank to the borrower, previously financed by the estate developer, after the project is granted the occupancy permit (authorization given by the municipal government so that a new constructed or renovated building can occupied).
Unearned Income (Sale Revenue to be Recognized): the revenue to be recognized represents contracted sales whose revenue is recognized in future periods, depending on the progress of the construction work, and not at the time of the contract signing. Therefore, the balance of Revenue to be Recognized represents revenues to be recognized in future periods from past sales.
U.S. dollar, U.S. dollars or S$: refers to U.S. dollars