Glossary

Accounting practices adopted in Brazil, in accordance with the Brazilian Corporate Law, CVM rules and instructions and IBRACON recommendations.

Adjusted EBITDA is calculated by adding income tax and social contribution, depreciation, amortization, net financial results, and non-operating results to the Company’s net income or loss. Adjusted EBITDA is not Brazilian or the U.S. GAAP measurement, it does not represent cash flow for the periods presented, and should not be considered a substitute for net income or for cash flow as an indicator of liquidity. Adjusted EBITDA does not have a standardized meaning and Lopes’ definition of Adjusted EBITDA may not be comparable to Adjusted EBITDA as used by other companies.

Brazilian Law No. 6,766, of December 19, 1979, as amended.

Market Arbitration Chamber established by the Bovespa for resolution of disputes between companies and its investors.

B3 S.A – Brasil, Bolsa, Balcão. Stock Exchange which LPS Brasil share (LPSB3) is traded.

The Brazilian Settlement and Custodial Company (Companhia Brasileira de Liquidação e Custódia).

Brazilian Federal Council of Realtors.

Code that establishes rules for consumer protection and defense, public order and social interest (Brazilian Federal Law No. 8,078, of September 11, 1980, as amended).

Regional Councils of Real Estate Brokers present in the national territory for the purpose of regulating the activity of real estate intermediation.

Regional Councils of Real Estate Brokers of São Paulo.

It is a joint-venture between LPS Brasil and Banco Itaú that has been financing real estate projects since 2007.

Customer relationship management tool.

Individual or legal entity that hires Lopes to intermediate the purchase of real estate launches or properties owned by third parties.

Individual or legal entity that hires Lopes to intermediate the sale of properties owned by it to third parties.

The Brazilian Securities Commission (Comissão de Valores Mobiliários).

Operating performance indicator that eliminates the effects of the financial and accounting decisions of a company’s results. EBITDA stands for earnings before interest, taxes, depreciation and amortization.

The EBITDA margin may be seen as an approximation of the company’s cash flow in each R$1,00 of revenue before financial expenses or taxes. EBITDA is calculated as the ratio between the company’s EBITDA and its net revenue.

Multiple utilized to evaluate a company’s value. It is calculated based on the ratio between the company’s market cap (market capitalization plus net debt) and EBITDA. It reflects the company’s value based on its indebtedness. EV/EBITDA stands for Enterprise value to earnings before interest, taxes, depreciation and amortization (the company’s value, after taxes and debts, divided by the income before interest, taxes, depreciation and amortization).

Brazilian Institute of Geography and Statistics.

International Financial Reporting Standards.

Brazilian Law No. 4,591, of December 16, 1964, as amended.

New real estate subdivision carried out by a subdivision company.

Launched general value of sales is the potential sales price of all the units brokered by Lopes during any period, based on the asking price for such units.

Lopes’ technology area created to serve all LPS Brasil audiences with excellence, such as brokers and franchisees, owners and developers and end customers.

The Company (Lopes – Consultoria de Imóveis S.A.) and its subsidiaries, on a consolidated form.

The company’s revenue adjusted according to the operating expenses, depreciation, interest, taxes and other expenses.

The ratio between a company’s net income and its net revenue. The net margin shows the percentage of each R$1,00 of revenue after all expenses, including income tax.

The amount effectively received by a company for the sales or services rendered, i.e., revenue (gross revenue) after direct taxes, such as Tax on Services (ISS), Social Program Integration Tax (PIS), Social Insurance Contribution (Cofins) and remaining taxes.

One of B3’s listing segments, comprising the highest level of corporate governance practices.

Multiple utilized to evaluate the ratio between the share’s price and the earnings per share of a given company. It shows how much an investor is willing to pay for each R$1.00 of income presented by a company. P/E stands for Price to Earnings (Price per share divided by earnings per share).

Temporary construction installed in the place where a real estate launch is being or will be carried out, with the objective of supporting the sales structure and the independent brokers involved in the sales process of such real estate launch and whose costs are borne by the client-developer responsible for the enterprise.

New real estate development carried out by a developer company, including residential or commercial buildings and sets of houses, in addition to flats, with the exception of subdivisions.

Brazilian Law No. 6015, of December 31, 1973, as amended.

LPS Brasil franchise network that is present in 18 Brazilian states and the Federal District.

New properties that have not been sold during the sales launch period.

Union of Companies for the Purchase, Sale, Leasing and Management of Residential and Commercial Properties in São Paulo.

U.S. Securities Act de 1933 dos EUA.

Brazilian Law No. 6,385, of December 7, 1976, as amended.

Reference rate in Brazil.

Housing Financial System, established by Brazilian Law No. 4,380, of August 21, 1964.

Real Estate Financial System, established by Brazilian Law No. 9,514, of November 20, 1997, as amended.

Construction Industry Union.

Indicators that calculate the speed of sales of properties in the primary market (launches). They can be related to releases and inventories (VSO) or just releases for that quarter (VSL).

Price estimated by a financial institution for a share in a given moment, based on specific assumptions.

Property that has already been used, whether for residential or commercial purposes, owned by individuals or legal entities.

Long-Term Interest Rate, established by Provisional Measure 684, of October 31, 1994.

Actual general value of sales is the actual sales price of all the units brokered by Lopes.

Brazilian Law No. 13,885, of October 6, 2004, of the city of São Paulo, as amended.