JHSF Participacoes SA reported audited consolidated earnings results for the fourth quarter and year ended December 31, 2014. For the quarter, gross revenue was BRL 164.7 million against BRL 137.6 million last year. Net revenue was BRL 151.8 million against BRL 125.4 million last year. Operating income was BRL 82.9 million against BRL 288.9 million last year. Income before taxes and social contribution was BRL 32.3 million against BRL 270.2 million last year. Net income was BRL 2.3 million against BRL 169.8 million last year. Adjusted EBITDA was BRL 43.7 million against BRL 23.0 million last year. Adjusted EBITDA increased by 90%, largely due to the improved performance of the Recurring Income division in the period, whose more than offset the EBITDA reduction in the Real Estate Developments division. Operating cash flow was BRL 28.3 million against BRL 30.2 million last year.

For the year, gross revenue was BRL 650.9 million against BRL 712.8 million last year. Net revenue was BRL 602.8 million against BRL 671.1 million last year. Operating income was BRL 234.3 million against BRL 544.3 million last year. Income before taxes and social contribution was BRL 101.9 million against BRL 479.8 million last year. Net income was BRL 41.8 million against BRL 319.3 million last year. Adjusted EBITDA was BRL 206.9 million against BRL 263.7 million last year. Net debt increased from BRL 1,340 million at the end of September to BRL 1,548 million at the close of the year, chiefly due to: (a) the investments already in progress, including the Catarina Fashion Outlet, the Catarina Airport and the residential building in New York; (b) the exchange variation on the financing abroad and (c) Fasano restaurants acquisition. Adjusted EBITDA fell by 22%, basically due to the difference in the operating performances of the Real Estate Development and International Properties divisions ­ due to the lower sales, the cost overruns in the Horto Bela Vista and Vitra projects, and a reduction in booked revenue (evolution of the works measured by PoC) throughout 2014. The variations in net income were chiefly due to non-cash effects ­ as differences in the appreciation of Investment Properties booked throughout 2013 and 2014 in Recurring Income division and the exchange variation on dollar- denominated financing ­ or to non-recurring events ­ as the accounting of provisions and expenses with organizational restructuring. Adjusted net debt was BRL 1,339.9 million at the end of September 2014 and BRL 1,556.1 million by December (pro-forma BRL 1,364.0 million, including the capital increase), primarily due to: (a) ongoing investments, including Catarina Fashion Outlet, Catarina Airport and the residential building in New York; (b) exchange variation on the international loans; and (c) Fasano restaurants acquisition. Operating cash flow was BRL 235.7 million against negative operating cash flow of BRL 17.8 million last year.