Rossi Residencial S A : 2Q21 Earnings Release

São Paulo, August 11, 2021. Rossi Residencial S.A. (B3: RSID3; Bloomberg: RSID3 BZ Equity), announces its results for the second quarter of 2021.

Resale efficiency of 86% of canceled units in 1H21

RSID3: R$ 12.23 per share

Total shares: 17,153,337

Market value: R$ 209.8 million

15% decrease in administrative expenses (IFRS) in 1H21 vs 1H20

19% increase in cash inflows (Rossi's share) in 2Q21 vs 2Q20

Net debt decreased by R$ 265.2 million (IFRS) in 2Q21

Conference Call

August 12, 2021

In Portuguese with Simultaneous Translation 10:00 (Brasília) / 09:00 (US ET)

Phone: [phone]

Code: Rossi

Replay (available until August 19, 2021):Access Number: ([phone] Code: Rossi

Investor Relations

Team

[e-mail]

[phone]

2Q21 Earnings Release

CONTENT

Message from the CEO	3
Operating and Financial Indicators	4
Operating Performance	5
Contracted Sales and SoS	5
Sales Cancellation	8
Inventory at Market Value	10
Costs to be Incurred	12
Land Bank	12
Financial Performance	13
Net Revenue	13
Gross Profit and Margin	13
Operating Expenses	14
EBITDA	17
Financial Result	17
Accounts Receivable	18
Marketable Properties	18
Debt	19
Transfers	22
Relationship with Independent Auditors	23
Exhibit I - 100% Indices	24
Exhibit II - IFRS Indices	25
Exhibit III - Income Statement	26
Exhibit IV - Balance Sheet	27
Exhibit V - Inventory (100%)	29
Glossary	30

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2Q21 Earnings Release

MESSAGE FROM THE CEO

We arrived at the end of the second quarter of 2021 with a growing feeling of optimism and confidence in the recovery of the Brazilian construction industry.

We have already started to see important recovery signs in the real estate market, with higher demand for real estate properties, mainly in Brazilian capital cities, and an increase in the appetite of the banking industry, both for public and private banks, with the new levels of credit and hiring of loans.

This overall economic improvement helped us maintain our sales speed (SoS) at the same rate as in previous quarters, resulting in an accumulated SoS of 82% over the last 12 months, 25 p.p. higher than in the 12 months ended in 2Q20.

We have also been maintaining our resale efficiency for finished units during 2021, reaching 86%, and the volume of transfers and settlements have also increased in 2Q21, which, consequently, has allowed the Company's cash inflows to also increase, by 19% in the quarter over 2Q20.

In terms of administrative expenses, our plan to simplify the Company's structure continues to generate positive results, maintaining these expenses in a downward trend, dropping by 15% in the first six months of 2021 in relation to the same period in the previous year.

We were also able to maintain our cash discipline and, even during a very challenging scenario for Rossi, we carried out the renegotiations approved at the end of last year with Banco do Brasil, obtaining new financial discounts, in the amount of R$ 245.5 million, and therefore significantly reducing our corporate debt, which is already 79% lower than in June 2020.

Finally, it is worth mentioning that this agreement with Banco do Brasil was only possible due to the Company's fulfillment of its targeted sale of non-strategic assets, generating the necessary cash to settle the amounts agreed with the bank.

By simplifying our structure, focusing on the continuous improvement of our indicators and having confidence in our strategic plan is how we will continue to prepare ourselves to increasingly improve our situation, so we can take advantage of the currently positive momentum and soon begin to resume the launching of new projects.

João Paulo Franco Rossi Cuppoloni

CEO

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2Q21 Earnings Release

OPERATING AND FINANCIAL INDICATORS

R$ MM	2Q21	2Q20	Var. (2Q21 x	2021	2020	Var. (2021 x
2Q20)	2020)
Operating Performance
Launches - 100%	-	-	-	-	-	-
Gross Sales - 100%	22.5	32.7	-31.4%	63.3	69.7	-9.2%
Cancellations - 100%	42.0	43.3	-3.1%	85.2	80.3	6.1%
Net Sales - 100%	-19.5	-10.6	-84.5%	-21.9	-10.6	106.6%
Launches - % Rossi	-	-	-	-	-	-
Gross Sales - % Rossi	22.4	28.2	-20.5%	62.8	59.1	6.2%
Cancellations - % Rossi	40.4	37.7	7.2%	82.7	71.0	16.5%
Net Sales - % Rossi	-18.0	-9.5	-88.8%	-20.0	-11.9	67.7%
Financial Performance
Net Revenue	19.7	8.4	135.7%	48.1	9.5	408.8%
Gross Margin¹	91.6%	-4.3%	95.9 p.p.	61.5%	-4.9%	66.3 p.p.
Gross Margin (ex interest)²	91.9%	28.8%	63.1 p.p.	66.4%	32.9%	33.5 p.p.
Adjusted EBITDA³	-67.5	-77.8	13.2%	-63.2	-123.3	-48.7%
Adjusted EBITDA Margin³	-342.0%	-929.2%	63.2%	-131.3%	-1303.5%	1172.2 p.p.
Net Income	106.2	-30.0	-453.8%	73.7	-103.2	-171.4%
Net Margin	538.3%	-358.7%	-250.1%	153.2%	-1090.9%	1244.1 p.p.
Cash Generation (Burn) - Rossi's share	265.2	70.6	275.5%	277.2	64.7	328.5%

• Consolidated as per CPC19 (R2) and CPC36 (R3), relating to the subsidiaries. ² Gross Margin excluding interest allocated to cost.

³ EBITDA and EBITDA Margin adjusted for expenses that do not represent a cash outflow and for non-recurring items. Reconciliation with EBITDA as per CVM Instruction 527/2012 is shown in the glossary at the end of this document.

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2Q21 Earnings Release

OPERATIONAL PERFORMANCE

The operating metrics shown in this earnings release are calculated on the basis of proportional view. In addition to the proportional view, the results are broken down by consolidated (IFRS) and non-consolidated companies, as shown in Exhibit II. Details of the amounts taking 100% of operations into account, irrespective of the method of consolidation, are given in Exhibit I.

SALES CONTRACTED AND SALES SPEED (SoS)

First-quarter gross contracted sales amounted to R$ 22.5 million (R$ 22.4 million - Rossi's share), a 21% decrease when compared to 2Q20. In 1H21, sales reached R$ 63.3 million (R$ 62.8 million - % Rossi), high by 6% YoY in Rossi's share.

Gross Sales - R$ million

																										69.7		63.3
																											10.6
				44.3																							0.6
												40.9
32.7
		4.8		28.1
								0.5				22.5
																											62.8
		4.5																					59.1
									1.7
28.2		39.5									40.3					0.1
		26.4
										22.4
	2Q20		3Q20		4Q20	1Q21	2Q21	2020		2021
													Rossi				Partners

The reduction in sales in 2Q21 is directly related to the depreciation of Company's inventories, which is natural as Rossi concluded projects launched until 2017 and maintains a conservative approach regarding new launches. This indicator increased during the first six months of the year and reflects the good performance seen in the first quarter and the rapid recovery of the real estate industry, which quickly adapted to minimize the negative impacts caused by the new coronavirus pandemic (COVID-19).

The following charts present gross sales (Rossi's share) by construction stage and metropolitan region:

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