Tecnisa S A : Earnings Documents

São Paulo, March 24, 2022.

TECNISA S.A. - 4Q21 EARNINGS RELEASE

TECNISA launches Highlights Pinheiros and UNIK projects, with a PSV of R$ 391 million. Net Contracted Sales, TECNISA's share, amounted to R$ 93 million in the quarter, an increase of 17% in comparison to 3Q21.

TECNISA S.A. (B3: TCSA3), one of the largest residential developers in Brazil, operating with an integrated business model that includes development, construction and brokerage, announces today its results for the fourth quarter of 2021 (4Q21). The information contained herein is presented in accordance with Brazilian accounting standards, in Brazilian real (R$), pursuant to Brazilian Corporate Law.

HIGHLIGHTS

Launches totaled a General Sales Value ("PSV") of R$391 million, Tecnisa's share. Year-to-date, launches added up to Tecnisa's PSV an amount of R$843 million, the highest volume since 2013.

The Land Bank ended 4Q21 with a potential PSV of R$5 billion.

The Net Contracted Sales, TECNISA's share, amounted to R$ 93 million in the quarter and R$276 million in the year, with a net Sale on Offer ("VSO") of 9% and 23%, respectively.

The Gross Result totaled R$2 million loss in 4Q21 and a profit of R$8 million in the year, with a Gross Margin of -11% and 6%, respectively.

TECNISA ended 4Q21 with a net loss of R$ 59 million and R$ 185 million in the year.

The consolidated cash position (Cash, Cash Equivalents and Financial Assets) ended 4Q21 with R$ 176 million.

The Adjusted Cash Generation in the period, measured by the net debt variation, totaled R$ 17 million in 4Q21 and R$ 94 million in 2021.

INDEX
Management's Message ...............................................................................................................	3
TECNISA MAIN FIGURES ................................................................................................................	4
OPERATING PERFORMANCE ..........................................................................................................	5
LAUNCHES ..........................................................................................................................................	5
CONTRACTED SALES...........................................................................................................................	5
LAND BANK ........................................................................................................................................	7
INVENTORY AT MARKET VALUE.........................................................................................................	9
DEVELOPMENT DELIVERY ................................................................................................................	10
RECEIVABLE TRANSFERS ..................................................................................................................	11
FINANCIAL PERFORMANCE..........................................................................................................	12
GROSS OPERATING REVENUE ..........................................................................................................	12
NET OPERATING REVENUE...............................................................................................................	12
COST OF PROPERTIES SOLD AND SERVICES RENDERED...................................................................	13
GROSS INCOME AND GROSS MARGIN .............................................................................................	13
BACKLOG RESULTS ...........................................................................................................................	14
SELLING EXPENSES ...........................................................................................................................	15
GENERAL AND ADMINISTRATIVE EXPENSES....................................................................................	15
EQUITY IN SUBSIDIARIES ..................................................................................................................	16
OTHER OPERATING REVENUES (EXPENSES).....................................................................................	16
EBITDA..............................................................................................................................................	16
FINANCIAL RESULTS .........................................................................................................................	17
NET INCOME.....................................................................................................................................	18
CASH POSITION AND INDEBTEDNESS ..............................................................................................	19
TRADE ACCOUNTS RECEIVABLES......................................................................................................	20
SUBSEQUENT EVENTS .................................................................................................................	22
4Q21 EARNINGS CONFERENCE CALL ............................................................................................	23
IR CONTACTS ..............................................................................................................................	23
APPENDIX ...................................................................................................................................	24
APPENDIX 1 - INCOME STATEMENT - TECNISA S.A. CONSOLIDATED (IN THOUSANDS OF REAIS) .24
APPENDIX 2 - BALANCE SHEET - TECNISA S.A. CONSOLIDATED (IN THOUSANDS OF REAIS) ..........	25
APPENDIX 3 - CASH FLOW - TECNISA S.A. CONSOLIDATED (IN THOUSANDS OF REAIS).................	27

Management's Message

The challenges in 2021 were many: [i] resuming launches in the midst of a pandemic that had lasted more than a year and that continued to generate restrictions on the operation of sales stands; [ii] increase of more than 7 percentage points in the SELIC rate throughout the year to contain the increasing inflation as a result of fiscal and monetary incentives; [ii] construction costs pressured by higher commodity prices and currency devaluation, with the National Construction Cost Index ("INCC") reaching 17% in the 12-month period; [iv] obtaining project approvals in the context of restrictions and lengthening deadlines from public bodies; [v] increasing competition due to greater launches volume.

Despite these difficulties, TECNISA maintained its focus on its growth strategy and presented Launches of R$843 million in General Sales Value ("PSV"), distributed across 5 projects in the city of São Paulo/SP. This amount represents the highest launching volume since 2013, marking an important stage in the Company's growth strategy.

The year 2022 started in an even more challenging environment. There are risks associated with: [i] impacts of the war between Russia and Ukraine, with implications for commodity inflation, national and world GDP growth and expectations of further interest rate raises; [ii] presidential elections, which tend to generate uncertainty and instability in the market, reducing consumer confidence in the acquisition of real estate for housing or investment; as well as [iii] risk of new variants of COVID-19, as can be seen with the increase in the number of infections around the world.

To overcome this scenario, under the leadership of Mr. Fernando Tadeu Perez, who assumed the position of CEO in November 2021, the Company has been taking measures to improve efficiency and return to profitability. As an example, there was a readjustment of the administrative structure with a reduction in staff by around 30% and the renegotiation of contracts with suppliers, without prejudice to the full functioning of the Company's operations. With a leaner structure, rationalization of activities and processes optimization, an efficiency gain is expected that will contribute to the year's result. It is also expected an increase in sales volume through the reinforcement of marketing campaigns and incentives for brokers (as in the Sales Convention held in February). As a result, Management remains confident in the continuity of launches, with emphasis on the projects to be launched in Jardim das Perdizes and in the Jardins region (at Alameda Lorena).

We are grateful for the support and guidance received from the Board of Directors, Fiscal Council and Audit Committee, as well as the trust placed in us by our shareholders, employees, customers, partners and suppliers.

The Management.

TECNISA MAIN FIGURES

12

1. Equity shareholder includes minority interest.
2. Cash Generation, measured by the net debt variation.

2 Additionally, it considers disbursements for land acquisitions of R$ 71 million, R$ 1 million, R$ 4 million, R$ 203 million and R$ 75 million in 4Q20, 3Q21, 4Q21, 2020 and 2021, respectively.

OPERATING PERFORMANCE

LAUNCHES

In 4Q21, we launched Highlights Pinheiros and Unik Residence, in Pinheiros and Nova Klabin neighborhood, totaling a Potential Sales Value ("PSV") of R$ 391 million, 100% TECNISA. Until the release of this report, the projects had 36% and 17% of the units sold. The year 2021 marks an important moment for the resumption of the Company's growth, with Launches that totaled TECNISA's PSV of R$843 million, an increase of 211% over the previous year and the highest volume of launches since 2013.

With these launches, the Company reached 93% of the minimum point of the projection of launches ("guidance") from R$1.2 to R$1.5 billion in PSV, TECNISA's share, for the 2020 and 2021 biennium, according to the Material Fact disclosed on November 11, 2020. It should be noted that this percentage does not take into account the MontKlabin project, which had its development canceled in December 2021. This decision was based on management's perception of the sales performance of this project and given the prospects of a worsening economic situation and the real estate market.

CONTRACTED SALES

Gross Contracted Sales, TECNISA's share, totaled R$ 98 million in the quarter, 18% higher when compared to 3Q21 and 20% lower over 4Q20. Despite the worsening economic situation, with higher interest rates and inflation, sales in the quarter reached the highest volume of the year in nominal terms with the contribution of new launches. The gross sales pace, as measured by the Gross Sales-over-Supply("SoS") ratio, reached 10% in 4Q21, remaining virtually constant in relation to 2Q21.