EZTEC - Investor Relations Mobile

Notice to the Market - EZTEC announces Preliminary 1Q16 Operating Results

EZTEC launches again with R$52 million of PSV in the 1Q16
Product launched in South Zone of São Paulo is approximately 30% sold

São Paulo, April 20th, 2016 - EZTEC SA (BOVESPA: EZTC3; Bloomberg: EZTC3: BZ), announces its preliminary operating results for the first quarter 2016 (1Q16). Note that the results presented here are managerial results and are subject to revision following the external audit. The complete and audited results for the 1Q16 are scheduled to be disclosed on May 12th, 2016, after market closure.

After two consecutive quarters without launching new products, EZTEC chose to conduct a launch in the first quarter of 2016. With 38 high-end units and located in upscale neighborhood of the southern city of Sao Paulo, the project Le Premier Moema totals EZTEC PSV of R$51.8 million. Managerial data indicate that, by the time of this document, 29% of the units of the project were sold.

The Company believes that, even in the current scenario, has projects which profile and location meet the criterias of liquidity and profitability needed to launch. It is important to note that the focus on selling inventory is maintained and that new launches can occur throughout the year, as decision of the commercial department, without interfering in the prioritization of other products able to be sold.

EZTEC follows with PSV of approximately R$5.9 billion in its landbank and is prepared to accelerate the development of its products so feel better market conditions.

Looking at R$24.4 million sales achieved in 1Q16, net of cancellations, it is important to analyze the profile of the inventory held by the Company at the beginning of the period and highlight the continued effort to maintain the performance of the products launched between 2012 and 2013, that has been delivered since 2015 and the units were sold within the best levels of profitability.

Prioritize sales prior periods may mean in certain periods, giving up a higher volume of gross sales in the current quarter to ensure that receivables are maintained or transferred, generating cash at the end of the process. Thus, within the criteria adopted by EZTEC, the usage of more aggressive sales campaigns, such as the EZ 50% held in 4Q15, only becomes possible when there is no risk of cancellations increasing in the projects that are being offered.

Management trusts the strategy that has been adopted and will continue campaigning throughout the year, in a careful way, trying not to damage its receivables portfolio and its turnover of sales.

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Contact IR

Telephone: +55 11 5056 8313
E-mail: ri@eztec.com.br