Arbitration Chamber – Market Arbitration Chamber, created by the BM&FBovespa, in accordance with Law nr. 9.307 of September 23, 1996, to act as an intermediary to help solving eventual conflicts that may emerge due to the application of the norms of the brazilian capital market.

Backlog Margin  Equivalent to “Backlog Result” divided by “Backlog Revenue”.

Backlog Result  In view of the recognition of revenues and costs, which occurs in accordance with the progress of construction works (PoC Method) and not when the contract is signed, we recognize development revenue from contracts signed in future periods. Therefore, our Backlog Result corresponds to pre-sales less the budgeted construction costs of these same units to be recognized in future periods.

Backlog Revenue  Backlog revenue corresponds to the pre-sales for which revenue is recognized in future periods in accordance with the percentage of completion rather than when the contract is signed.

Bank Transfer – Moment in which the financing of the units´acquisition, priorly realized by the real estate developer, is transferred to the financial institution. It is normally related to the conclusion of the construction and the issue of the Habite-se.

BM&FBovespa – Tha brazilian Stock, Mercantile and Futures Exchange, in the city of São Paulo.

CEPAC – Certificate of Additional Potencial Construction. The CEPACs are marketable certificates offered by municipalities, which are used as means of payment at the acquisition of Additional Urbanistic Rights in areas where Urban Consortiated Operations are being developed. Each CEPAC grants additional rights of construction measured in square meters for additional use in construction or adjustments in the parameters of a land or a project. These instruments are used by the government to coordinate the dity´s urban planning and finance public projects.

Commercial  Commercial and corporate units developed exclusively for sale.

Cost of Properties Sold – Composed of the cost of land, development of the project, construction costs and expenses related to construction financing (SFH).

CVM – Brazilian Securities Exchange Commission.

EBITDA – Earnings Before Interest, Taxes, Debt and Amortization.

Fiduciary Alienation – Also described as “Alienation as Guarantee”, it is a property right variation commonly used in the brazilian real estate market in which the creditor keeps the property of the financed asset as a guarantee of the debt. This way, even though the purchaser effectively enjoys the rights of directly utilizing the property being financed, the debtor will only become the real owner of the asset at the end of the process, once the debt is repaid, which results in a higher amount of security to the creditor in an eventual default process.

IFRS – International Financial Reporting Standards.

IGP-M – General Market Prices Index. It is a price index disclosed by the Getúlio Vargas Foundation, always at the end of the month. It is a combination of three other indices: Ample Index of Productor´s Prices (IPA), representing 60% of the IGP-M, Index of Consumer Prices (IPC), representing other 30%, and the National Construction Costs Index (INCC), responsible for the remaining 10%.

INCC – National Construction Costs Index. The objective of this index is to track the evolution of the costs of residential constructions in the brazilian territory. Its data are collected in 7 different capitals: São Paulo, Rio de Janeiro, Belo Horizonte, Salvador, Recife, Porto Alegre and Brasília.

Land Bank  Lots that Helbor holds for future developments, which are acquired in cash or through swap agreements.

Percentage of Completion (PoC) Method – Under Brazilian GAAP, the revenue, costs and expenses from real estate development activities are recognized in profit and loss over the course of construction in accordance with the percentage of completion of works by measuring the percentage of costs incurred in relation to the total budgeted costs. Therefore, a substantial portion of development revenue in a period reflects the recognition of sales made in prior periods.

Potential Sales Value (PSV)  The total potential value that may be obtained through the sale of the units launched.

Pre-Sales  The aggregate amount of sales resulting from all agreements for the sale of units entered into during a certain period, which include new units and units in inventory. Pre-sales are recognized as revenue in accordance with the progress of construction works (PoC method).

RET – Special Taxation Regime. It is a simplified regime for the payment of taxes, consisting of a joint incidence (IRPJ, CSLL, PIS and COFINS) that can vary among 1% and 4% (according to the tax dispensations of December 2012) of monthly gross revenues, depending on the type of project being developed. It is a governmental incentive which aims to support the adoption of the Segregate Estate, which is a prior condition to enter the regime, in the processes of real estate development.

Return on Equity (ROE)  ROE corresponds to net income in a period divided by average shareholders’ equity in the same period.

Securitization – Financial operation that seeks to diminish the risks faced by the company. To what concerns Helbor, it corresponds to the sale of receivables (installments yet to be received due to the sale of units) to the Securitization companies.

Segregate Estate – Consists in the attachment of the revenues of a real estate development to the investment in its construction. What occurs is an accounting segregation between the project itself (represented by the Special Purpose Entity which is responsible for it, or any other legal entity chosen) and the real estate developer, so that the revenues derived from the sale of units of this particular project cannot be redirected to other developments, limiting the company´s liberty to use its cash flow and increasing the guarantees for the conclusion of the project and the security of the investment made by clients.

SFH Funds  Funds under the Housing Financing System (Sistema Financeiro da Habitação – SFH) originated from the Severance Indemnity Fund for Employees (FGTS) and from savings account deposits. Commercial banks are required to direct 65% of their savings account deposits to the housing sector as loans to either homebuyers or developers at lower interest rates than the private market.

Silent Partnership (SCPs)  The silent partnerships (Sociedade em Conta de Participação – SCP) that hold the development operations of our projects.

SPE  Entity created with the specific purpose of developing a specific real estate project, which under Brazilian corporation law may adopt the form of various entities, including, but not limited to, SCPs and limited liability partnerships.

Subdivision Projects  Land subdivision projects that require the construction of new streets and infrastructure.

Swap Agreements  A method for acquiring land in which the seller receives a certain number of units or a percentage of the revenue from the sale of the units of the project to be developed on the property.