Grand Life Saúde
                            São Paulo - SP
                    Launched in Sep, 2005
                    ...
Agenda



  Sector Review



  Company Highlights



  Financial Information


  Appendix




                          2
Sector Review




Floris Bosque Residencial
São Paulo - SP
Launched in August, 2008
90% sold until September, 2008        ...
Ja
                                  n
                                M -0                                               ...
Income and Employment



                              Income Growth                                                      ...
Mortgage Credit Available

  Mortgage Loans Funding (in R$ billion)                                                       ...
Regulations of Mortgage Availability


                                                       Savings Accounts Funding



...
Low Default Rate for Mortgage



                           11.0%
                                                    9.2%...
Growth of Potential Demand

      Market for Units of R$ 110,000 in 2005 and R$ 90,000 in 2008



                      20...
Company
                                   Highlights




Vivae Residencial Clube (Living)
Rio de Janeiro - RJ
Launched in...
Excellent Track Record of Growth



               Launches (in R$ million)                                      Pre - Sal...
Launches and Pre-Sales Contracts – in R$ million

               Launches                                          Pre-Sal...
Sales Speed – in R$ million

                                  Sales Speed of Launches
                                   ...
Sales Performance – Residential – Jan/Sep 2008

                                    São Paulo                             ...
Launches 2004 to 2008 - SP Metropolitan Region


                                   Units                                 ...
Launches 2004 to 2008 - RJ and Region


                                       Units                                      ...
Sales Performance 9M08 – Residential Buildings

                       São Paulo – Sales Speed
                           ...
LIVING – Sales Performance


                 Average Sales Speed


4Q07           50%                      14%           ...
Landbank

PSV: R$34.6 billion                  South
                                     5.7%                            ...
Financing Capacity - SFH

 Availability of financing funds for construction

                                             ...
Client Debt Transfers


  Transfers in 2008: R$ 70 million, 117% higher than 2007


  70% are transferred less than 1 mont...
Financing by SFH


                                       Up to R$ 350 thousand
                                       per...
Guidance Revision




   (R$ million)                     2008                          2009

                          Ne...
Financial
                                  Information




Brisas Altos do Calhau (Living)
São Luis - MA
Launched in Augu...
Pre-Sales to be Recognized

R$ million                                               2006        2007        9M08

Sales t...
Financial Results – in R$ million
                                                     Net Revenues
                      ...
Financial Results – in R$ million
                                                      EBITDA
                           ...
Financial Results – in R$ million



                                     Adjusted Net Income

                           ...
Accounts Receivable

          Accounts Receivable Evolution                                   Remuneration of Receivables...
Liquidity

    Debt
                                                          Balance on
    (R$ million)                 ...
Appendix




Ineditto Clube Residencial (Living)
      São Bernardo do Campo, SP
           Launched in June, 2008
   73% ...
Cyrela Brazil Realty

                                     2005           2006           2007           9M08

Launches (Fu...
Joint Ventures


            % CBR     Region          Segment          Year

             50%     São Paulo     Middle / ...
Geographical Expansion

Presence in 55 cities in 17 states of Brazil and Buenos Aires in Argentina

   70 Projects outside...
Cyrela’s Distinct Brands: Maximizing Exposure to Demand

     These brands allow Cyrela to reach all sectors of the Brazil...
Growth Strategy on Economic Segment

                          Launched in the 2nd half of 2006,
            LIVING is alr...
History




             60s              90s            2000           2002             2005          2006               ...
Smart and Efficient Financial Management


                          Land                                            Excha...
Typical Cyrela Project
                                                                                     Completion
   ...
Typical Economic Project
  Shorter operating cycle: 24 months

                      Launch       Go-ahead                ...
Addressable Market Analysis



                                                        2005                Dec/2007       ...
Financing: Interest and Term Impact

                                                                        Monthly Insta...
Financial
                              Statements




             Dez Aricanduva
              São Paulo, SP
Launched in...
Income Statement

   R$ million                        2005         2006        2007        CAGR         9M08
            ...
Cyrela - Corporate Presentation - January 2009
Cyrela - Corporate Presentation - January 2009
Cyrela - Corporate Presentation - January 2009
Cyrela - Corporate Presentation - January 2009
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Cyrela - Corporate Presentation - January 2009

  1. 1. Grand Life Saúde São Paulo - SP Launched in Sep, 2005 Delivered in Oct, 2008 100% sold Company Presentation January 2009 1
  2. 2. Agenda Sector Review Company Highlights Financial Information Appendix 2
  3. 3. Sector Review Floris Bosque Residencial São Paulo - SP Launched in August, 2008 90% sold until September, 2008 3
  4. 4. Ja n M -0 Apr-00 ay 0 Se -00 Aug-00 Apr-00 13.3 p Jan-00 Ja -00 Dec-00 n M -0 Apr-01 11.2 ay 1 12.5 Mar-01 Se -01 p Aug-01 Ja -01 Dec-01 n M -0 ay 2 Apr-02 Se -02 p Aug-02 Jun-02 Ja -02 Source: SINDUSCON-RS n Dec-02 17.8 M -0 May-02 Source: SECOVI-SP/EMBRAESP ay 3 Apr-03 11.9 14.0 Mar-03 Se -03 p Aug-03 Ja -03 n Dec-03 M -0 ay 4 Se -04 Apr-04 p Aug-04 24.1 14.1 Jul-04 Ja -04 Feb-04 n Dec-04 M -0 ay 5 Se -05 Apr-05 p Aug-05 São Paulo Ja -05 n M -0 Dec-05 Porto Alegre ay 6 Apr-06 10.0 Se -06 p Mar-06 22.5 Ja -06 Aug-06 Feb-06 n M -0 Dec-06 Demand in Expansion ay 7 Se -07 Apr-07 Supply to Sales - 12 month curve in units Supply to Sales - 12 month curve in units 6.8 16.7 p Jul-06 Apr-07 Ja -07 n Aug-07 M -0 Dec-07 7.2 ay 8 Sep-07 Se -08 Apr-08 4.5 p- 08 Aug-08 6.5 Aug-08 Sep-08 Ja Apn-0 Jul-04 0 14.7 Sep-04 Jul-04 Jur-0 O l-00 20.5 c Nov-04 Jan-00 Ja t-00 Apn-00 Jan-05 1 16.1 Jur-0 Mar-05 15.2 Feb-05 O l-01 Nov-00 Source: ADEMI-RJ c May-05 Ja t-01 Apn-01 2 Jul-05 Jur-0 O l-02 Sep-05 ct 2 18.9 24.9 Ja -0 Nov-05 Oct-05 Apr-02 Apn-02 3 Jan-06 Jur-0 Source: SINDUSCON-CE/FIEC O l-03 Mar-06 12.1 c Jan-06 Ja t-03 Apn-03 May-06 4 17.0 Jur-0 Jul-06 Sep-03 9.4 O l-04 c Sep-06 Aug-06 Ja t-04 Apn-04 Nov-06 5 Jur-0 Jan-07 O l-05 Fortaleza c 25.1 Ja t-05 Mar-07 Mar-05 Apn-05 6 May-07 11.3 Rio de Janeiro Jur-0 18.6 May-07 O l-06 Jul-07 Oct-05 c Ja t-06 Sep-07 Apn-06 7 20.7 Jur-0 Nov-07 Aug-06 Supply to Sales - 12 month curve in units Supply to Sales - 12 month curve in units O l-07 Jan-08 ct 7 12.3 Ja -0 Feb-08 Mar-08 Aug-07 Apn-07 8 Jur-08 May-08 l-0 8 13.9 Jul-08 Jul-08 11.5 15.8 Aug-08 4
  5. 5. Income and Employment Income Growth Unemployment Rate Real Overall Wages Avg. Real Income per capita 2006 = 100 R$ 118 1,300 14.0% Unemployment Rate in Metropolitan Regions (30 days) 116 13.0% 114 1,250 12.0% 112 11.0% 110 1,200 10.0% 108 9.0% 106 1,150 8.0% 104 7.0% Dec-08 102 1,100 6.8% 100 6.0% Feb-02 Apr-02 Jun-02 Aug-02 Aug-03 Oct-02 Dec-02 Feb-03 Apr-03 Jun-03 Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 Aug-04 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 98 1,050 Jun-06 Nov-06 Apr-07 Sep-07 Feb-08 Jul-08 Dec-08 Source: MCM Consultoria and IBGE Source: CAGED 5
  6. 6. Mortgage Credit Available Mortgage Loans Funding (in R$ billion) Mortgage Loans Record = 627.000 in 1980 39.0 41.8 % 9% : 42 8e: 1 0 09e 9.0 11.8 03 -2 0 0 3-2 R 20 Contracts (thousands) CAG 600 0 20 25.2 GR 500 CA 6.9 400 16.3 300 10.4 30.0 30.0 7.0 200 6.9 18.3 5.2 4.6 4.8 5.0 5.5 100 3.3 2.8 3.9 9.3 2.7 3 4.9 0 1.9 1.9 1.8 2.2 3.0 95 96 97 98 99 00 01 02 03 04 05 06 07 e 2000 2001 2002 2003 2004 2005 2006 2007 2008e 2009e 08 19 19 19 19 19 20 20 20 20 20 20 20 20 20 SBPE FGTS SBPE FGTS Source: ABECIP, Central Bank of Brazil and Secovi Source: ABECIP, Central Bank of Brazil and Banco Real Mortgage to GDP Ratio 280% 249% 230% 180% 166% 156% 141% 137% 125% 130% 111% 73% 80% 65% 53% 46% 63% 46% 37% 35% 33% 28% 20% 30% 13% 10% 2% 2% 8% 6% 9%17% -20% UK A ia il d ain o ile ary a . d s ep az US xi c lan f ric l an Ind nd Ch Sp ng Br hR rla Me Po A Ire Hu ec th the u Cz Ne So Mortgage credit to GDP Ratio Total Credit to GDP Source: Central Bank and Bradesco Corretora 6
  7. 7. Regulations of Mortgage Availability Savings Accounts Funding 400 350 R$ Billion 300 250 200 150 100 50 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Savings Accounts Mandatory Lending Mortgage Loans Source: Central Bank and Banco Real Note: assumptions for the estimates following 2007 are -stability of savings account s with TR + 6%p.a. remuneration -mandatory lending at 65% of savings accounts -mortgage loans growth of 25%p.a. as of 2006-2007 growth 7
  8. 8. Low Default Rate for Mortgage 11.0% 9.2% 8.1% 5.9% 3.6% 4.0% 4.0% 3.7% 3.7% * 2.1% 2.4% 2.0% 1.3% 1.4% 1.4% 1.4% 2003 2004 2005 2006 2007 1Q08 2Q08 3Q08 Cyrela 31 days overdue receivables Market Mortgage Loans with > 3 late payments Source: Cyrela, ACSP, ABECIP and Banco Real * Market Data of 3Q08 not available – 3Q08 figure refers to 2Q08 Market Mortgage Loans Cyrela’s Receivables Default as the delay in payment > 90 days Overdue receivables as the delay in payment > 31 days Default on mortgage loans = 3.7% Overdue receivables 1.4% Core business 1.6% Default on general credit lines = 7.3% Living 0.3% Default on loans with no collateral = 14.1% Deliquency rate is close to zero 8
  9. 9. Growth of Potential Demand Market for Units of R$ 110,000 in 2005 and R$ 90,000 in 2008 2005 2008 Monthly Income Monthly Income Potential Demand: > R$ 4,800 10% +17.9 mm families 4.7 mm families > R$1,400 47% 22.6 mm families From R$1,200 to R$4,800 39% 19.0 mm families < R$1,200 53% < R$1,400 51% 24.9 mm families 26.0 mm families TR+14% TR+9% 10 years 30 years Source: UBS Pactual 9
  10. 10. Company Highlights Vivae Residencial Clube (Living) Rio de Janeiro - RJ Launched in July, 2008 70% sold until September, 2008 10
  11. 11. Excellent Track Record of Growth Launches (in R$ million) Pre - Sales Contracts (in R$ million) = 55% = 51% 8e C A GR CAGR – 200 – 2008e 2004 2004 +85% 5,393 5,250 - 5,600 4,675 - 4,950 +129% 4,392 1,965 1,572 2,917 992 1,915 1,211 3,428 546 972 949 1,023 2,820 207 1,924 272 236 268 1,004 1,369 700 713 755 2004 2005 2006 2007 2008e 2004 2005 2006 2007 2008e Cyrela Partners Cyrela Partners Consistent track record of growth in Launches and Pre-sales Contracts 11
  12. 12. Launches and Pre-Sales Contracts – in R$ million Launches Pre-Sales +64% 3,971 +89% 4,045 1,286 1,352 2,424 -33.1% 2,145 1,574 911 -0.5% 679 652 1,053 2,685 1,058 1,053 2,693 305 355 356 1,513 1,466 922 748 703 697 3Q07 3Q08 9M07 9M08 3Q07 3Q08 9M07 9M08 Cyrela Partners Cyrela Partners 3Q08 Launches – Region 3Q08 Pre-Sales – Income Segment SP Super Economic 6% 37% RJ 15% Economic 30% Middle 18% Mid-High 26% Luxury 21% Expansão 47% 12
  13. 13. Sales Speed – in R$ million Sales Speed of Launches Seller and Selling sales 4Q07 47% 16% 12% 5% 81% accounted for R$419.9million in 3Q08 1Q08 47% 30% 0% 77% It represents 47% of 2Q08 64% 9% 74% sales in the regions where Seller and 3Q08 39% 39% Selling operate In 3 months In 6 months In 9 months In 12 months Inventory in Sep/08 - %CBR 3Q08 Launch Sales 4,587 99.3 538 414 1,265 2,693 152 86.9 1,893 1,053 733 1% 12.4 20% 386 2,685 28% 532 638 39% 1,721 51% 964 Inventory Dec/07 + Sales 9M08 Inventory Sep/08 3Q08 Launches Sales of Launches 3Q08 Inventory Launches 9M08 3Q08 in 3Q08 1T08 Launches 2008 2007 2006 Previous Years Sales speed Velocidade de Vendas 13
  14. 14. Sales Performance – Residential – Jan/Sep 2008 São Paulo Rio de Janeiro (R$ million) (R$ million) 13,060 1,453 7,822 2,569 Market Market Cyrela Cyrela 548 319 1,567 1,202 Launches in SP Pre-Sales in SP Launches in RJ Pre-Sales in RJ 12% 15% 21% 22% Launches Pre-Sales Launches Pre-Sales Cyrela’s stakes indicate strong sales performance in the main markets Source: Cyrela MID - Jan-Sep 2008 14
  15. 15. Launches 2004 to 2008 - SP Metropolitan Region Units Potential Sales Value (R$ million) 58,512 17,422 7,030 50,468 6,162 5,052 13,059 34,345 35,350 19,074 11,274 14,191 9,607 28,782 4,051 4,497 3,688 7,997 3,939 7,326 3,224 8,567 10,129 3,320 5,307 21,524 3,119 4,374 10,269 23,464 3,894 8,937 12,721 3,242 1,977 4,072 3,552 11,314 11,821 10,884 1,803 1,928 2,688 8,449 6,651 1,098 1,117 753 972 636 2004 2005 2006 2007 Jan-Sep 2008 2004 2005 2006 2007 Jan-Sep 2008 Luxury > R$ 3,500/m² Middle > R$ 2,700/m², <3,500/m² Economic > R$ 1,900/m², <2,700/m² Super-Economic < R$ 1,900/m² Source: Cyrela MID 15
  16. 16. Launches 2004 to 2008 - RJ and Region Units Potential Sales Value (R$ million) 13,350 3,446 2,363 3,147 9,829 2,569 1,272 2,354 7,831 3,885 1,728 7,019 1,729 6,856 989 1,734 883 1,491 3,846 1,353 975 3,666 1,677 2,511 5,800 509 659 690 1,096 1,141 2,680 2,657 980 3,080 273 759 1,142 200 659 350 907 1,171 1,302 1,598 221 203 219 506 69 134 2004 2005 2006 2007 Jan-Sep 2008 2004 2005 2006 2007 Jan-Sep 2008 Luxury > R$ 3,500/m² Middle > R$ 2,700/m², <3,500/m² Economic > R$ 1,900/m², <2,700/m² Super-Economic < R$ 1,900/m² Source: Cyrela MID 16
  17. 17. Sales Performance 9M08 – Residential Buildings São Paulo – Sales Speed 83% 77% 77% 75% 75% 66% 59% 57% Market Cyrela Super- Economic Middle Luxury economic Rio de Janeiro – Sales Speed 64% 63% 62% 60% 59% 49% 44% 39% Market Cyrela Super- Economic Middle Luxury economic Source: Cyrela MID 17
  18. 18. LIVING – Sales Performance Average Sales Speed 4Q07 50% 14% 14% 7% 84% 1Q08 53% 32% 2% 87% 2Q08 63% 21% 83% 3Q08 41% 41% In 3 months In 6 months In 9 months In 12 months 18
  19. 19. Landbank PSV: R$34.6 billion South 5.7% São Paulo Capital North 29.6% Cyrela's Share: 76% 3.0% São Paulo Other cities 81% exchanged Southeast 71.4% 17.3% Northeast Rio de Janeiro 11.1 million sq. m. 19.8% 49.7% Minas Gerais ~126.7 thd units 0.5% Espírito Santo 3.0% Income Segment Landbank – Usable Area (in million of sq.m) Super 6% 4% +2 Economic 11.1 5% Economic 25% +3 8.8 7% 6.5 1 Middle 31% +1 3.0 Mid-High 32% Luxury 8% 2005 2006 2007 9M08 19
  20. 20. Financing Capacity - SFH Availability of financing funds for construction Credit limit 8.1 R$ billion Agreed 3.1 Amount due: 0.6 Available 5.0 It is possible to launch R$ 3 of Potential Sales Value for each R$ 1 available for construction financing It is possible to finance approximately R$ 15 billion in potential sales value with the credit lines still available, not considering the securitization of receivables Exemplo: Land: up to 20% 100% of PSV 80% financed by SFH = 32% of PSV Construction: 40% 20%: own capital or CEF = 8% of PSV 20
  21. 21. Client Debt Transfers Transfers in 2008: R$ 70 million, 117% higher than 2007 70% are transferred less than 1 month after condominuim registration Debt transfers forecast: R$ 200 million in 2009 and R$ 400 million in 2010 October/2008: First Living client debt transfer (Garden Resort in Jundiaí – SP) 21
  22. 22. Financing by SFH Up to R$ 350 thousand per unit For construction: For the client: - Amount limited to 80% of the total - Amount limited to 80% of the sale construction cost or R$ 350 thousand/unit and evaluation value which can represent PSV of R$ 1 million/unit - Guaranty: deed of trust - Guaranty: 120% of the amount due - Payment terms up to 30 years - Payment term up to 4 years after completion of construction - All projects can be financed by SFH, taking into consideration the maximum value of units 22
  23. 23. Guidance Revision (R$ million) 2008 2009 New Previous New Previous Under Launches – 100% 5,250 to 5,600 7,000 8,800 Revision Under Pre-Sales – 100% 4,675 to 4,950 5,500 7,000 Revision Under %CBR 63 to 68% 62 to 67% 63 to 68% Revision 23
  24. 24. Financial Information Brisas Altos do Calhau (Living) São Luis - MA Launched in August, 2008 75% sold until September, 2008 24
  25. 25. Pre-Sales to be Recognized R$ million 2006 2007 9M08 Sales to be recognized at the beginning of the period 1,020.0 1,577.6 3,201.9 Net sales recorded in the period 1,630.7 3,328.6 3,529.7 Revenues recognized in the period (1,072.8) (1,703.7) (2,016.4) Sales to be recognized at the end of the period 1,577.6 3,202.0 4,714.8 Cost of units sold to be recognized (923.7) (1,919.0) (2,800.5) Selling Expenses (36.8) (60.8) (81.8) Gross profit to be recognized 653.9 1,283.0 1,832.5 Percentage of gross profit 41.4% 40.1% 40.6% 25
  26. 26. Financial Results – in R$ million Net Revenues 1,958.6 +82% +68% 1,073.6 743.9 695.8 414.8 3Q07 2Q08 3Q08 9M07 9M08 Gross Profit Backlog 43.5% 42.3% 40.5% 40.6% 41.8% 41.5% 40.5% 40.1% 40.2% 40.4% +125% 4,714.8 812.2 4,425.9 +81% 3,581.1 3,202.0 +63% 449.1 2,099.1 300.4 294.2 180.5 3Q07 2Q08 3Q08 9M07 9M08 9M07 2007 3M08 1H08 9M08 Revenue to be Recog. Gross Mg. To be Recog. Gross Profit Gross Margin 26
  27. 27. Financial Results – in R$ million EBITDA 26.6% 26.1% 21.9% 21.8% 21.6% +51% 423.6 +37% 279.9 162.8 151.4 110.4 3Q07 2Q08 3Q08 9M07 9M08 EBITDA EBITDA Margin Expenses on Pre-Sales Contracts Expenses on Net Revenue 13.6% 7.6% 12.1% 11.3% 11.6% 10.7% 5.6% 5.6% 4.6% 4.2% 4.0% 3.8% 8.9% 8.1% 8.5% 2.8% 2.6% 2.5% 7.2% 6.7% 3Q07 4Q07 1Q08 2Q08 3Q08 3Q07 4Q07 1Q08 2Q08 3Q08 Gen. & Admin. Expenses Selling Expenses Gen. & Admin. Expenses Selling Expenses 27
  28. 28. Financial Results – in R$ million Adjusted Net Income 20.6% 16.0% 14.2% 21.7% 10.4% +26% 277.4 221.0 -20% 119.2 90.0 72.4 3Q07 2Q08 3Q08 9M07 9M08 Adjusted Net Profit Adjusted Net Margin Adjustment: net of the appreciation of Agra's shares in 2Q07 and 9M07. 28
  29. 29. Accounts Receivable Accounts Receivable Evolution Remuneration of Receivables (R$ million) Finished units: IGP-M + 12% Under construction: INCC +115% 6,886 6,366 6,886 498 5,149 4,607 3,206 6,388 1.3% 1.3% 1.4% 1.4% 1.4% 2,801 9M07 2007 3M08 1H08 9M08 Receivables 31-days overdue Receivables Finished units Units under construction Schedule of Receivables Construction Cost to be Realized (R$ million) 1,372 1,187 845 917 599 473 437 391 352 313 2008 2009 2010 2011 2012 2013 2014 2015 2016 Up to 2027 29
  30. 30. Liquidity Debt Balance on (R$ million) Maturity Cost 09/30/2008 Debentures 1st issuance 500.0 2012, 2013, 2014 CDI + 0.48% p.a. Debentures 2nd issuance 499.5 2018 CDI + 0.65% p.a. Total Debt 999.5 Net Debt Cash and Cash Equivalents (818.2) = 0.3 times Net Debt 181.3 LTM EBITDA Operational financing through SFH not accounted for Financing through SFH (R$ billion) 3.1 Contracted 0.6 Balance Due 30
  31. 31. Appendix Ineditto Clube Residencial (Living) São Bernardo do Campo, SP Launched in June, 2008 73% sold until September, 2008 31
  32. 32. Cyrela Brazil Realty 2005 2006 2007 9M08 Launches (Full Year) R$ 1.2 bn R$ 2.9 bn R$ 5.4 bn R$ 4.0 bn Pre-sales (Full Year) R$ 1.0 bn R$ 1.9 bn R$ 4.4 bn R$ 4.0 bn Landbank 3.0 mn sq.m. 4.9 mn sq.m. 8.8 mn sq.m. 11.1 mn sq.m. Low income units 0 720 6.7 thd 9.5 thd Gross Margin Baixa Renda 48.5% 524.4 42.2% 688.8 41.2% 688.8 41.5% 688.8 EBITDA Margin* Baixa Renda 27.1% 524.4 22.3% 688.8 22.9% 688.8 21.6% 688.8 Net Margin* Baixa Renda 23.2% 524.4 21.7% 688.8 24.7% 688.8 14.2% 688.8 # Homebuilders listed 2 4 21 21 Market Cap Cyrela Brazil Realty R$ 2.4 bn R$ 4.5 bn R$ 8.6 bn R$ 2.9 bn** Market Cap of the Industry R$ 6.0 bn R$ 10.0 bn R$ 48.1 bn R$ 13.1 bn** Number of cities 3 8 47 55 Employees 202 327 529 ~600 Seller Brokers & Team 100 200 743 ~700 *Adjusted for IPO expenses **Market caps as of Jan 22, 2009 32
  33. 33. Joint Ventures % CBR Region Segment Year 50% São Paulo Middle / Mid-High 2006 50% South All 2006 50% São Paulo Mid-High / Luxury 2007 50% MG and DF All 2007 50% São Paulo Middle / Mid-High 2008 50% Buenos Aires All 2007 Economic / Super 50% São Paulo 2007 Economic Economic / Super 75% São Paulo 2007 Economic Economic / Super 79% São Paulo 2006 Economic 33
  34. 34. Geographical Expansion Presence in 55 cities in 17 states of Brazil and Buenos Aires in Argentina 70 Projects outside SP – RJ region R$ 10.8 billion of PSV (Cyrela’s stake: 59.0%) Barueri Belém Belford Roxo Belo Horizonte Cabo Frio Campinas Campos Canoas Caxias do Sul Caxias Cotia Curitiba Diadema Duque de Caxias Ferraz de Vasconcelos Florianópolis Fortaleza Goiânia Gravataí Guarulhos Jacareí Jacarepaguá Joao Pessoa Jundiaí Lauro de Freitas Maceió Manaus Mogi das Cruzes Natal Niterói Nizia Floresta Nova Iguaçu Novo Hamburgo Palhoça Parnamirim Porto Alegre Praia Grande Recife Rezende Ribeirão Preto Rio de Janeiro Salvador Santo André São Bernardo São Caetano São Gonçalo São J. dos Campos São José do Rio Preto São Luis São Paulo São Sebastião Serra Sorocaba Vila Velha Vitória 34
  35. 35. Cyrela’s Distinct Brands: Maximizing Exposure to Demand These brands allow Cyrela to reach all sectors of the Brazilian housing market • “Economic” and “Super Economic” • Core business : “Mid” to “High Description projects to enhance company’s End” housing growth and explore opportunities • Strong demand powered by lower • Strong demand with income Demand interest rates and longer terms of growth and a favorable population financing pyramid Typical Cycle 24 months 36 months Average Gross Margin ~35% ~40% • Collections of 20% of the PSV up to • Collections of 40-60% until the delivery of the units delivery of the units Other Information • 80% of the PSV is assigned to • Performed receivables are indexed banks which fully finance the at IGP-M + 12% p.a. customer 35
  36. 36. Growth Strategy on Economic Segment Launched in the 2nd half of 2006, LIVING is already one of the largest players of this segment Cyrela seeks for a leadership position in this segment LIVING offers units starting at R$ 55 thousand Unit Price per Family Income R$ 200 thd Economic 6 -12 minimum wages R$ 100 thd 4 – 6 minimum wages Super Economic R$ 55 thd 36
  37. 37. History 60s 90s 2000 2002 2005 2006 2007 First real estate Brazil Realty - Partnership Acquisition of Merger of Acquisition of Spin-off of development, Joint Venture with RJZ to IRSA stake in Cyrela and RJZ Rental mostly land with IRSA to enter Rio de Brazil Realty Brazil Realty Properties New Joint develop and Janeiro (CCP) Cyrela was created Public Ventures rent office market in 1962 focusing on Offering Debentures properties Follow on the residential issued part I (1994) development Living business Brazil Realty (Economic IPO (1996) segment) 37
  38. 38. Smart and Efficient Financial Management Land Exchange agreements (80%) when acquiring land to reduce cash disbursements Construction financed by customers 12% received before start of construction 47% received before delivery of the unit Construction More than 70% of units sold before start of construction Use of SFH (1) funds (TR + 10% p.a.) Customer financing of receivables at INCC (2) Customer financing of remaining receivables Post - at IGP-M + 12% p.a.(3) delivery Insignificant losses from default (1) Brazilian mortgage financing system, reference rate index (TR) was 2.9% p.a. in 2005 (2) Residential Construction Cost index (3) General market price index 38
  39. 39. Typical Cyrela Project Completion Launch Go-ahead Delivery of payments 6M - 9M Construction Licensing 0M 6M 12M 18M 24M 30M 36M Up to 100M Pre-sales 0 50 70 80 90 95 100 100 % Budget Costs - - 0% 20% 40% 65% 100% 100% Revenues - - 0 16 36 62 100 100 Collections (cumulative) - 7 14 20 28 34 50 100 Assumptions for this example: Potential sales: R$125 million Exchange agreements (land): R$25 million Does not include financial revenues in customer financing 39
  40. 40. Typical Economic Project Shorter operating cycle: 24 months Launch Go-ahead Delivery Financing 6 – 9 months Construction Pre-Launching 0M 6M 12M 18M 24M Up to 28M Contracted Sales (cumulative) - 70 80 90 100 100 %Construction Cost - - 23% 55% 100% 100% Revenues (cumulative) - - 19 49 100 100 Collections (cumulative) - 6 11 13 20 100 Assumptions for this example: Potential Sales: R$110 million Exchange agreements: 100% (R$10 mn), Unit price 80% financed by partner banks Client is fully financed by the banks after the assignment of the financing to them 40
  41. 41. Addressable Market Analysis 2005 Dec/2007 2008 + Conditions Conditions Low Income 1 Cheapest Unit Value Offered ('000 R$) 110 110 70 Funding Rate (Nominal) 17.0% 11.4% 9.9% Reference Tax (floating) 3.0% 0.9% 0.9% Spread 14.0% 10.5% 9.0% (-) Expected Inflation 4.0% 3.0% 3.0% Funding Rate (Real) 13.0% 8.4% 6.9% # years 10 25 30 Montly Instalment ('000 R$) 1.7 0.9 0.5 % Household Income 33.3% 33.3% 33.3% Min. Monthly Income ('000 R$/month) 5.1 2.7 1.4 Addressable Mkt (mn households) 5.2 11.7 22.6 1 Developers' entrance on the affordable segment has brought down the price of the cheapest unit offered. Source: UBS Pactual 41
  42. 42. Financing: Interest and Term Impact Monthly Installment (R$) Model: Loan Term (years) Unit Value: R$ 120,000 10 15 20 25 30 12% 1,377 1,152 1,057 1,011 987 Loan-To-Value: 80% Real Interest Rate (%) 11% 1,322 1,091 991 941 914 Loan: R$ 96,000 10% 1,269 1,032 926 872 842 9% 1,216 974 864 806 772 Mortgage Effort: 30% 8% 1,165 917 803 741 704 7% 1,115 863 744 679 639 6% 1,066 810 688 619 576 5% 1,018 759 634 561 515 Example Rental : R$800 per month Minimum Wages Required (monthly salary) Annual Yield: 8% Loan Term (years) Equivalent to Loan Instalment with 10 15 20 25 30 Real Interest Rate at 8% and 20 years 12% 13 11 10 10 9 Real Interest Rate (%) term. 11% 13 10 9 9 9 10% 12 10 9 8 8 9% 12 9 8 8 7 8% 11 9 8 7 7 7% 11 8 7 6 6 6% 10 8 7 6 5 5% 10 7 6 5 5 42
  43. 43. Financial Statements Dez Aricanduva São Paulo, SP Launched in September, 2008 100% sold 43
  44. 44. Income Statement R$ million 2005 2006 2007 CAGR 9M08 2005 - 07 Net Revenues(1) 688.8 1,116.7 1,707.3 57.4% 1,958.6 Growth % 31.4% 62.1% 52.9% Gross Profit 318.6 471.5 703.2 48.6% 812.1 Margin % 46.2% 48.0% 41.2% 41.5% EBITDA 157.7 248.5 390.5 57.4% 423.6 Margin % 22.9% 22.3% 22.9% 21.6% Income Taxes (17.8) (58.0) (55.7) (81.1) Minority Interest (16.1) (24.0) (24.5) (33.5) Net Income 127.8 242.3 422.1 81.7% 277.4 Adjusted Net Income 153.6 263.1 422.1 65.8% 277.4 (1) Includes residential development revenues, rentals and services until 2006 Consistent Growth in Sales with Sustained Profitability 44

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