EZTEC - Investor Relations Mobile

Notice to the Market - EZTEC announces Preliminary 3Q19 Operating Results

Net sales reach all time high of R$1.02 billion in first 9 months of 2019
Net sales exceed by 7% the R$949 million of PSV launched in that same period

São Paulo, October 15th, 2019 - EZTEC SA (BOVESPA: EZTC3; Bloomberg: EZTC3: BZ), announces its preliminary operating results for the third quarter of 2019 (3Q19). Note that the results presented here have managerial nature and are subject to revision following the external audit. The complete and audited results for 3Q19 are scheduled to be disclosed on November 15th, 2019, after market closure.

Sales and Cancellations

In the third quarter of 2019, the Company has performed R$343.2 MN in net sales - broken down in R$365.7 million in gross sales and $22.5 million in cancellations. The net figure implies a 7.8% reduction vis a vis 2Q19, on the back of a smaller number of projects launched in the quarter. Even so, to the extent that the Company accumulated projects launched ever since the beginning of the cycle, from 4Q18 on, it counts with a growing sales contribution coming from past launches, captured in the Stand and in Construction categories. In other words, although the Company has launched a relatively low volume in 3Q19 - while focusing its efforts in preparing for EZ Parque da Cidade -, it benefited from a continued performance from projects like Pátrio Ibirapuera, Z.Pinheiros, Fit Casa Rio Bonito, Fit Casa Brás, among others (listed on their order of importance).

In regards to the ready inventory sales, the greatest volume sold was in the Cidade Maia mega-compound, in Guarlhos, which accounted for as much as one third of the quarter‘s ready inventory sales. Over the course of 4Q19, Cidade Maia has had net sales of 60 units, thus repeating the all time high mark reported in 2Q19, even while.

The biggest quantity of inventory of Ready Units sold in the quarter was in the mega project Cidade Maia, in Guarulhos, it responds alone for one-third of the units‘ sales of the line. During the quarter, Cidade Maia had a net sales of 60 units, repeating the same record of 2Q19, although the inventory available keeps shrinking. This reaffirms the Sales Speed ascending track of this project, today, it stills keeps the biggest volume of the company‘s Ready Units inventory.

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For further information contact:

EZTEC S.A. - Investor Relations
Phone: +55 (11) 5056-8313
E-mail: ri@eztec.com.br

About EZTEC:

With 40 years of operations, EZTEC is one of the most profitable publicly-traded companies in Brazil’s real estate development and building industry. Based on its fully integrated business model, EZTEC has already launched 141 projects, totaling more than 4.3 million square meters of built area and area under construction, and 28,862 units. EZTEC S.A. is listed on the Novo Mercado special corporate governance segment of the São Paulo Stock Exchange (BM&FBOVESPA) under the ticker EZTC3.

"This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of EZTEC. These are merely projections and, as such, are based exclusively on the expectations of the Company’s management concerning the future of the business and its continued access to capital to fund its business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in the Company’s filed disclosure documents and are, therefore, subject to change without prior notice".

Contact IR

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