PDG Realty Empreend e Participacoes : 2Q16 Earnings Presentation

Asset Management:

Sales

Cancellations Accounts Receivable Inventory

Liabilities Management:

Net Debt Variation Deleveraging

G&A Expenses

Ongoing Projects and Cost to be Incurred

Corcovado

Rio de Janeiro/RJ

Sale of Assets and Debt Restructuring

Asset Management:

Sales

Cancellations Accounts Receivable Inventory

Liabilities Management:

Net Debt Variation Deleveraging

G&A Expenses

Ongoing Projects and Cost to be Incurred

Sublime

Rio de Janeiro/RJ

Sale of Assets and Debt Restructuring

2Q16 and 1H16 Highlights

Highlights

Net Debt fell by R$270 million in the quarter and R$381 million in the semester, reinforcing the positive trend presented in the last seven quarters;

G&A expenses decreased 16% over the 2Q15 and 19% in the 1H16 year-to-date over the first six months of last year, reaffirming our focus on adjust the Company structure to the size of its operations;

Gross sales reached R$345 million with net sales of R$77 million in the quarter. In the first half, gross sales totaled R$748 million with net sales of R$174 million;

Cash sales amounted to R$64 million in the quarter, accounting for 19% of gross sales. In the first half-year, cash sales totaled R$146 million, or 20% of total sales;

In the quarter, cancellations came to R$268 million, 40% down against 2Q15; in the first half-year it amounted R$578 million, reduction of 37% compared to the same period in 2015;

The Company's extended leverage, including net financial debt and costs to be incurred, fell by R$338 million between 1Q16 and 2Q16. In the first half-year, reduction amounted to R$463 million, reducing operational complexity and the execution risk of our assets.

Completion of the sale of REP, for which we received the equivalent of R$34 million in real estate units, with a

reduction of R$214 million in PDG's net debt;

In the quarter, we also concluded the sale of 2 projects (D'oro and Arena) to BVEP for R$10 million, plus a reduction of R$52 million in costs to be incurred.

4