EZTEC - Investor Relations Mobile

Notice to the Market - EZTEC announces Preliminary 4Q19 Operating Results

Net sales reach R$1.56 billion in 2019, a 158% increase from 2018
R$1.89 billion in PSV launched for the year represents a 152% uptake from 2018

São Paulo, January 21st, 2020 - EZTEC SA (BOVESPA: EZTC3; Bloomberg: EZTC3: BZ), announces its preliminary operating results for the fourth quarter of 2019 (4Q19). Note that the results presented here have managerial nature and are subject to revision following the external audit. The complete and audited results for 4Q19 are scheduled to be disclosed on March 19th, 2020, after market closure.

Sales and Cancellations

Sales performance for the year set a new record for the Company, having sold more than any other year in its history - it has exceeded the 2013 record by 8%, adjusted by inflation, ex-EZ Towers. The R$1.56 billion sold in 2019 represents an 158% increase in the amount accrued in 2018.

In the fourth quarter of 2019, the Company has performed R$542.8 MN in net sales - broken down into R$566.1 million in gross sales and $23.2 million in cancellations. The net figure implies an 58.5% increase vis a vis 3Q19, propelled by the year’s most significant project, EZ Parque da Cidade. Additionally, the quarter has had help from the broadened portfolio of available projects, as the outstanding inventory from projects launched since late 2018 kept pushing sales further. Sales from pojects launched in the past quarters have had a sustained breath going forward (capture in the Stand or In Construction lines), which reaffirms the positive momentum from buyers throughout the São Paulo real estate market.

In regards to the ready inventory sales, the slight contraction in sales reflect the exhaustion of available ready inventory. In this context, the greatest volume sold was in the Cidade Maia mega-compound, in Guarulhos, which accounted for as much as half of the quarter’s ready inventory sales. Over the course of 4Q19, Cidade Maia has had net sales of 69 units, setting a new all-time high for this product (both in terms of gross and net sales) since the first semester of 2015, even while the underlying base of inventory available has continuously shrunk. This feat reaffirms the upward Sales Over Supply trajectory in Cidade Maia, a project that still concentrates the largest volume of ready inventory units in the Company.

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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 145 projects, totaling more than 4.4 million square meters of built area and area under construction, and 31,278 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