Direcional Engenharia (DIRR3) Corporate presentation summary

Company overview and history

• Founded in 1981, expanded from industrial projects to large-scale low-income housing developments, with significant geographic growth across Brazil since 2007.

• Over 170,000 units delivered and more than 500 projects launched since 2009, with a verticalized business model and strong cost control.

• Diversified operations in both low- and mid-income segments, with subsidiaries targeting specific market niches.

• Maintains a brAAA rating from S&P Global Ratings, reflecting a conservative financial profile.

Strategic positioning and operational focus

• Focuses on underpenetrated, high-potential markets with minimal reliance on highly competitive cities.

• Land acquisition and launch committees ensure rigorous project selection and economic viability.

• Product differentiation through standardized low-rise projects for low-income and industrialized high-rise buildings for mid-income clients.

• High asset turnover and low cash exposure business model, with 86% of landbank costs paid through swaps.

Financial and operational performance

• Achieved record net sales of BRL 6.3 billion and net income of BRL 638 million in 2024, with a net margin of 19.1%.

• Launches reached BRL 5.8 billion in 2024, up 18% from 2023, and net sales increased 57% year-over-year.

• Adjusted gross margin improved to 38.5%, and annualized ROE reached 33%.

• Deferred revenue and backlog margin grew, with backlog margin at 43.9% by year-end.

• SG&A expenses diluted as a percentage of revenue, supporting margin expansion.