Brasil Brokers Participações S A : 4Q21 Earnings Release

EARNINGS RELEASE

2021

Earnings Conference Call:

		Portuguese	English
		March 23, 2022	March 23, 2022
IR Team:		3:00 p.m. (Brasília time)	3:00 p.m. (Brasília time)
		2:00 p.m. (NY time)	2:00 p.m. (NY time)
Daniel Guerbatin	Luiz Augusto R. e Silva	Phone: [phone]	Phone: [phone]
CEO	FP&A and IR
Andrea de Rizzio	Paulo Mikan Bertoldo
CFO and IRO	Investor Relations
[phone]	[e-mail]

SUMMARY
1.	OPERATING AND FINANCIAL HIGHLIGHTS......................................................................................	9
2.	GROSS REVENUE FROM SERVICES ................................................................................................	10
3.	COST, ADMINISTRATIVE EXPENSES AND LEGAL LIABILITIES .........................................................	16
4.	ESG ...............................................................................................................................................	18
5.	OPERATING RESULTS....................................................................................................................	19
6.	INVESTMENTS AND CASH.............................................................................................................	20
7.	CORPORATE GOVERNANCE ..........................................................................................................	22
8.	SUBSEQUENT EVENTS...................................................................................................................	22

MANAGEMENT REPORT

Management of Brasil Brokers Participações S.A. ("Brasil Brokers" or "Company") presents for your appreciation its Management Report and the Parent Company and Consolidated Financial Statements, accompanied by the Independent Auditor's Report, for the year ended December 31, 2021.

Message from Management

The year of 2021 was, without a doubt, the year in which Brasil Brokers consolidated the growth of its business model, focusing on digital transformation. During the year, we built a company whose purpose was to make each real estate experience a unique partnership and this guided us in the improvements that needed to be implemented.

Today, we can confirm that we are a 'Figital' company since we aligned our years of experience in traditional real estate with technological transformations that offer humanized services, allowing us to better understand the needs of each client and improve the journey of this relationship. For this, we invested in proprietary technology and transformed our processes and systems so we could offer unique experiences in the buying and selling journeys, in which clients have access to all the necessary information about a property, including a virtual tour and integration with key points of interest on Google, therefore enabling us to boost sales in a fully digital format without the need for a physical visit. This development, initially carried out at Desenrola, is being gradually implemented in the group's other companies, including Brasil Brokers' website, and has significantly improved customer experience and navigability through a modern layout and quick updates on properties available by our sales team.

Another technological development we implemented at the Company was the CredIntegrados system, a digital Real Estate Credit platform that connects the country's main banks so that we can monitor all stages of the financing process, from simulation to the effective hiring of a housing loan. The development of this platform will continue to be very important for Credimorar, as it allows our partners, even with little experience in offering real estate credit, to offer this service through our platform quickly and with no bureaucracy.

Digital transformation has been the leverage engine for our operations, having contributed to reductions in operating costs and better remuneration for the sales team. During the year, we made several improvements to our "tech" team, including: the strengthening of the team by hiring new talents and offering employee training, the advancement in the implementation of the scrum agile model to ensure agility in developments and recurring improvements to our proprietary systems, as well as the migration of our data centers to the cloud based and SaaS model, which generated gains in availability and performance in our applications.

On the ESG front, which could not be ignored, we also incorporated practices into our corporate activities and the daily lives of our employees. We treat this agenda with great responsibility and we know this will help us to position ourselves in a more sustainable and long-lasting way, in line with best market practices. Meeting the needs of social and cultural transformation, we advanced in the #Gigantesca Movement, which is the key catalyst for change in this matter, addressing topics such as: unconscious bias and gender, sexual, social and racial ethnic diversity, all of which had enormous engagement from our employees and helped to positively transform our work environment by fostering diversity of thoughts and perspectives.

In line with our purpose, our group companies acted in the direct intervention of housing projects since this matter is directly related to our business. Through the "Future Starts at Home" project, in partnership with the

NGO Habitat para a Humanidade Brasil, we supported 10 vulnerable families in the city of Goiânia by renovating their homes. Through this, we believe that we were able to serve our society by meeting several critical factors, in addition to contributing with the evolution of the country and the cities where we operate.

We also promote specific assistance actions, such as the donation of 1,363 (one thousand, three hundred and sixty-three) items, including books, milk, and toys, to support projects such as the Pastoral da Criança de Inhoaí- ba - RJ, Projeto Batucando - RJ, Projeto Nossa Turma - SP, Assentamento Buenos Aires- GO, therefore leaving a positive legacy in all the States in which we are present.

Operating Performance

Looking at our business performance in 2021, we had a record year in the real estate market, achieving excellent sales results in cities such as Rio de Janeiro and São Paulo, the main cities in the country, which resumed sales and launching activities, surpassing 2019, a year prior to the COVID-19 pandemic. A good part of this result was driven by the search for larger properties due to the increasingly amount of people working from home, in addition to the reduction in the Selic rate, to an annual rate of 2%, which also helped strengthen the market's recovery and, consequently, the performance of Brasil Brokers.

Home loans granted by the Brazilian System of Savings and Loans (SBPE) reached R$205.41 billion in 2021, up by 65.7% from the R$123.97 billion granted in 2020, a record annual result. With this, Credimorar consolidated itself as one of the main companies for the intermediation of real estate financing in the country, being the largest originator of housing loans for Banco Bradesco, the third largest originator for Santander and one of the five largest originators for Banco Itaú. A total of R$4.1 billion was originated in real estate credit (produced GFV), up by 60% over 2020 and corresponding to 13,252 financed units. When we compare the results for Credimorar against the numbers in 2019, we had a 109% growth from the R$1.9 billion in produced GFV, reaffirming, once again, the Company's strategic direction approach during the year.

In the primary market, we reached a potential sales value (PSV) of R$2.5 billion, corresponding to a 56% growth from the R$1.6 billion in 2020, and, despite the reduction in the number of units sold, we ended the year with an average ticket of R$658 thousand, increasing by 51% over the previous year. In the secondary market, PSV was R$1.5 billion, 42% higher than in 2020. Just like the primary market, the average ticket for units sold also increased by 7%, to R$660 thousand.

As a result, the Company's gross revenue ended 2021 at R$168 million, a strong 40% growth from the R$120 million reported in 2020 and 32% higher than the R$127 million reported in 2019, mainly due to our financial services vertical, which had gross revenues of R$98 million in 2021, accounting for 59% of the total amount. Our gross margin (as a percentage of gross revenue) ended the year at 52.8%, increasing by 3% over 2020 when this margin was 51.4%.

Our administrative expenses, as a percentage of gross revenue, fell 16.3 p.p., reaching 53.0% in 2021 compared to 69.4% in 2020, and was 20.8 p.p. lower than the 73.9% reported in 2019. This significant reduction consolidates the restructuring process we have been implementing during the last two years.

The adjusted EBITDA after legal liabilities was negative R$0.3 million in 2021, improving by R$19.36 million from the negative R$19.66 million in 2020. Adjusted EBITDA from continued operations ended December 31, 2021, with a recovery of approximately R$4.9 million, reaching a negative R$39.0 million compared to a negative R$43.8 million at the end of 2020.

The table below shows the breakdown of EBITDA and Adjusted EBITDA from the Company's continued opera- tions, based on the losses recorded in the fiscal years ended December 31, 2021 and December 30, 2020, reconciled to the Company's consolidated interim financial information, in line with the provisions of CVM Instruction 527/12:

(em R$ mil, exceto %)	Exercício social encerrado em
		31 de dezembro de 2021
Medições não contábeis	2021	AH%	2020	AH%
Prejuízo atribuído aos acionistas controladores	-72.945	59,05%	-178.125	-99,85%
Lucro líquido atribuído aos acionistas não controladores	-194	-183,26%	233	-98,73%
Prejuízo do exercício	-73.139	58,89%	-177.892	-151,38%
(-) Resultado financeiro	17.526	356,53%	3.839	75,62%
(-) Imposto de renda e contribuição social	667	-31,80%	978	40,52%
(-) Depreciação e amortização	8.987	-21,00%	11.376	191,94%
EBITDA	(1)	-45.959	71,58%	-161.699	-101,48%
(-) Ajuste ao valor recuperável de ativos	7.000	-94,11%	118.862	100%
(-) Lucro líquido proveniente das operações descontinuadas	0	100,00%	-979	-104,42%
EBITDA Ajustado das operações continuadas (1)	-38.959	11,08%	-43.816	24,61%

1. EBITDA and Adjusted EBITDA from continuing operations are not recognized measures under Brazilian GAAP or Interna- tional Financial Reporting Standards ("IFRS"), do not have a standard definition and may not be comparable to similar measures provided by other companies. The Company uses EBITDA and Adjusted EBITDA from continuing operations as ad- ditional performance indicators for management purposes and for comparison with similar companies.

Operating Performance

The Company operates in four main markets, all of which geographically located in Brazil, defined as financial services market, secondary market, rental market, and primary market. There is a lot to celebrate when we analyze the breakdown by operating market:

• The financial services market, which offers advisory services for the trade of financial services, such as home loans and home equity, recorded 13,252 financed units in 2021, a significant increase of 11% over the number of financed units (11,969) in 2020.
  Credimorar Serviços Financeiros e Securitários S.A. achieved historic performance results in 2021, in line with the real estate credit market in the country, and this result drove us to end the year with R$4,318 mil- lion in billed GFV, making us one of the largest credit intermediaries in the country. Thus, gross revenue grew by an impressive 74% in 2021, to R$98.4 million from the R$56.6 million recorded in 2020. The finan- cial services market alone accounted for 59% of the Company's total gross revenue.
• The secondary market, which is responsible for the sale of used or ready-to-move-in properties, ended 2021 with 2,226 units sold, an increase of 33% against 2020, when 1,704 were sold.
  The potential sales value (PSV) increased by 42%, from R$1,055.9 million in 2020 to R$1,496.0 million in 2021, contributing to a 7% increase in the average ticket of the units sold in the year, from R$619,7 thou- sand to R$660,4 thousand per unit.