History and Corporate Profile

With 50 years of history, we are among the largest developers in Rio Grande do Sul in terms of volume of launches in Valor Geral de Vendas (“PSV”). We believe that we lead the market in which we operate as a result of our professionalized governance, in addition to being a strong reference in high standards since the beginning of our operations. With the experience and credibility gained by Milton Melnick and his performance in the development segment since 1970, Melnick appears, in 1992, with the involvement of the second generation of the family, the sons Leandro and Juliano Melnick, and a more entrepreneurial vision in management of the Company.

Our successful experience is proven by the history of profitability and profitability, with one of the largest Return on Average Equity (“ROAE”) of the real estate sector in recent years, even in periods of severe crisis in the country’s real estate sector. As an example, we present high and consistent results, such as an average ROAE of 21%, in the last ten years, and average net profit in the crisis period (2015-2019) of R $ 74 million, without ever having presented a year of loss in the history Additionally, we are inserted in a market with great growth potential – the real estate market in the state of Rio Grande do Sul – and we believe we are ahead of our competitors and well positioned for continuous growth.

In 2019, we reached the level of R $ 760 million in PSV of launches, consolidating the Company’s market leadership position in the metropolitan region of Porto Alegre, with a 42% market share of launches above R $ 15 million – representing in 2018, 27% and, in 2017, 24% – and, considering the entire market, 23% market share, in both cases, without considering the Casa Verde and Amarela sector, replacing Minha Casa Minha Vida e Urbanizadora.

Our management is marked by professionalism and commitment to the quality of life of the client, which is why we sought from an early age to professionalize business management, implementing processes that consolidated a high level of governance, such as the adoption of a structured profit sharing program ( PPR), the achievement of ISO 9001 certification in 2001 and the implementation of a robust Integrated Business Management System (ERP) for managing information and processes, at the time SIENGE, which in 2012 was integrated into the integrated transactional business management system (“SAP”).

Since 2008, we have also built a strategic partnership with Even Construtora e Incorporadora SA (“Even”), whose decisive factor was the similarity of values, culture and business model and brought gains in the sharing of practices, exchange of successful experiences and in the development of successful ventures. Even so, we maintained 100% independent management (both corporate and functionally), under the leadership, at the time, of Leandro Melnick.

In addition to our focus on high-end residential developments, and transporting all the knowledge of this segment to the others, we are also present in the medium and low standard segments (most recent segment), commercials and subdivisions, in addition to special and iconic projects of mixed utilities, such as the Pontal project, with phases launched in 2018 and 2019, and the Max Plaza project, one of the few commercial and residential complexes with a Health Hub in Brazil, in partnership with the Moinhos de Vento Hospital, recognized by the Ministry of Health as one of the five Hospitals of Excellence in the Country, being the only one in the South Region; and the historic affiliation agreement with Johns Hopkins Medicine International (JHI), the international arm of Johns Hopkins Medicine.

We believe that our good performance is linked to the experience and proximity of the management led by the Melnick family, represented today by our CEO, Juliano Melnick. In addition, our team, composed of experienced executives and more than 500 direct employees, allows us to offer product diversification and consistent growth.

We are guided by the vision of being the most profitable company in Brazil and we have followed, for more than 10 years, several governance standards applicable to publicly-held companies, such as the preparation of quarterly financial audits, installation of the Board of Directors, obtaining certifications relevant to the operation and development and application of codes of conduct and compliance to our employees.

With high delivery capacity, pursuing the development of differentiated and high quality products, including more than 200 towers delivered and under construction, we launched a total PSV of over R $ 6 billion in the last 10 years, with an average annual launch of R $ 683 million, and 22 active construction sites per year, considering the average for the same period, and serving around 25 thousand customers.

Additionally, we have a differentiated landbank, with a potential PSV of R$ 3.9 billion, and an additional R$ 7.1 billion in land subject to purchase options, positioned in the best locations in the state of Rio Grande do Sul. Our landbank is composed of for land selected by a team specialized in the market in which we operate and for products with high demand, through an intelligent acquisition strategy, with no obligation to launch and without penalties if there is no launch, with well-defined resolution clauses.

For all these factors, the Melnick Even brand is recognized as Top of Mind in the sector and the most remembered and preferred company by customers.