Tecnisa S A : Earnings Documents

Financial Statements Tecnisa S.A.

December 31, 2021 with Independent Auditor's Report

A free translation from Portuguese into English of independent auditor's report on individual and consolidated financial statements prepared in Brazilian currency in accordance with accounting practices adopted in Brazil and the International Financial Reporting Standards (IFRS), applicable to Brazilian real estate development entities registered with the Brazilian Securities and Exchange Commission ("CVM")

São Paulo, March 23, 2022

MANAGEMENT REPORT - 2021

MESSAGE FROM THE MANAGEMENT

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 increase in inflation as a result of fiscal and monetary stimuli; [iii] 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] competition with higher volume of launches.

At the same time, in June 2021, a law was passed that amended the guidelines for the Urban Operation of Água Branca, reducing the price of the Additional Construction Potential Certificates ("Cepacs") required for the continuation of the development of the Jardim das Perdizes project. In August 2021, however, an injunction suspended the effectiveness of that law.

Despite these difficulties, TECNISA maintained its focus on its growth strategy and presented Launches of R$843 million in General Sales Value ("PSV"), distributed across 5 projects in the city of São Paulo/SP. This figure represents the highest volume of launches since 2013, marking an important stage in the Company's growth strategy. Net Sales totaled R$ 276 million, TECNISA's share, with a Sales on Offer ("VSO") of 23%, impacted by the worsening economic and sectorial situation. As a result, Inventory at Market Value closed the year at R$903 million, with 6% related to units of completed works.

With the increase in the purchase of land, a potential PSV of R$459 million was added to the Landbank Portfolio, helping the Company to end the year with a potential PSV of R$5 billion. During the year, 4 non-strategic plots of land were sold for R$34 million, Tecnisa's share.

Net Revenue for the year was R$141 million, compared to R$174 million in the previous year, a 19% decrease that is explained [i] by the lower sales volume of finished units, given the reduction in ready-to-sale inventories ; and [ii] by the concentration of launches in the last 5 months of the year, so that works were not started, thus failing to contribute to the Company's revenue. With few ongoing projects contributing to the result, Gross Profit totaled R$8 million in 2021, with an Adjusted Gross Margin of 14.7%

Even in an inflationary scenario, the Company kept General and Administrative Expenses under control, totaling R$ 64 million in the year, a 2% decrease compared to 2020 compared to inflation measured by the Broad National Consumer Price Index ("IPCA" ) of 10%. However, the increase in interest rates and inflation impacted the Financial Result, which ended 2021 with an expense of R$53 million, an increase of 186% compared to 2020.

In fact, the Net Result for the year was a loss of R$ 185 million, justified by [i] the low volume of launches in previous years, harming the dilution of fixed costs; as well as [ii] the court agreement communicated in the Material Fact of May 27, 2021, a non-recurring event that generated a loss of R$42 million. Given the sector's accounting, which recognizes the results of sales according to the percentage of financial evolution of the projects, it is expected that the return to profitability of the Company will be gradual with the continuity of launches, increase in sales and start of works.

With a disbursement of BRL 75 million in land purchases and also impacted by the aforementioned judicial agreement, the Company ended 2021 with a Consolidated Cash Position of BRL 176 million, an amount 4 times higher than the Short-term Debts of BRL $ 42 million, which gives financial comfort at the beginning of the construction cycle. Additionally, we highlight the existence of R$ 56 million in the Performed Receivables Portfolio that can be securitized to strengthen the cash position and reduce net debt, which currently represents 58% of Shareholders' Equity.

It should be noted that, in October 2021, TECNISA changed its registered office to the Corporate Tower in the Jardim das Perdizes neighborhood. In addition to the savings in rental expenses compared to the previous headquarters, the move is a source of pride as it is a product that is a milestone in the Company's history.

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 hikes; [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 optimization of processes, 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 administration..

RELATIONSHIP WITH INDEPENDENT AUDITORS

During the 2021 financial year, we inform that the independent auditors of the company Ernst & Young Auditores Independentes S.S. did not provide services other than those related to external audit.

In compliance with the provisions of article 25 of CVM Instruction No. 480/09, of December 7, 2009, the Board of Executive Officers declares that it discussed, reviewed and agreed with the opinions expressed in the Report of Ernst & Young Auditores Independentes SS, and with the financial statements financial statements for the fiscal year ended December 31, 2021.

Tecnisa S.A.

Individual and consolidated financial statements

December 31, 2021

Contents

Independent auditor's report on individual and consolidated financial statements .......................... 1

Individual and consolidated financial statements

Statements of financial position ....................................................................................................... 7

Statements of profit or loss ............................................................................................................. 8

Statements of comprehensive income (loss) ................................................................................... 9

Statements of changes in equity ................................................................................................... 10

Statements of cash flows - indirect method ................................................................................... 11

Statements of value added ........................................................................................................... 12

Notes to the financial statements .................................................................................................. 13

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A free translation from Portuguese into English of independent auditor's report on individual and consolidated financial statements prepared in Brazilian currency in accordance with accounting practices adopted in Brazil and the International Financial Reporting Standards (IFRS), applicable to Brazilian real estate development entities registered with the Brazilian Securities and Exchange Commission ("CVM")

Independent auditor's report on individual and consolidated financial statements

To the

Shareholders, Board of Directors and Officers of

Tecnisa S.A.

Opinion on individual and consolidated financial statements prepared in accordance with accounting practices adopted in Brazil and the International Financial Reporting Standards (IFRS), applicable to Brazilian real estate development entities registered with the Brazilian Securities and Exchange Commission ("CVM")

We have audited the individual and consolidated financial statements of Tecisa S.A. (the "Company"), identified as Individual and Consolidated, respectively, which comprise the statement of financial position as of December 31, 2021, and the statements of profit or loss, of comprehensive income (loss), of changes in equity and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying individual and consolidated financial statements present fairly, in all material respects, the individual and consolidated financial position of Tecnisa S.A. as of December 31, 2021, and its individual and consolidated financial performance and cash flows for the year then ended in accordance with accounting the practices adopted in Brazil and with International Financial Reporting Standards (IFRS), applicable to Brazilian real estate development entities registered with the Brazilian Securities and Exchange Commission ("CVM").

Basis for opinion

We conducted our audit in accordance with Brazilian and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the individual and consolidated financial statements section of our report. We are independent of the Company and its subsidiaries in accordance with the relevant ethical principles set forth in the Code of Professional Ethics for Accountants, the professional standards issued by the Brazil's National Association of State Boards of Accountancy (CFC) and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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