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Cyrela - Corporate Presentation - March 2009
 

Cyrela - Corporate Presentation - March 2009

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Corporate Presentation - March 2009

Corporate Presentation - March 2009

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    Cyrela - Corporate Presentation - March 2009 Cyrela - Corporate Presentation - March 2009 Presentation Transcript

    • NOVAMERICA São Paulo, SP Launched in March 2009 Company Presentation March 2009 1
    • Escritório Santana São Paulo, SP Launched in March 2009 Agenda 2009 Update Company Highlights Financial Information Appendix 2
    • Barra Prime Office Rio de Janeiro, RJ Launched in November 2008 1Q09 Update 3
    • Current Panorama Continuous improvement in the real estate market Good market response to launches NovAmérica: R$ 278 million PSV - 69% sold to date Escritórios Santana: 78% sold Mérito Vila Curuçá: 85% sold April/2009: L’Acqua – Natal/RN:1st launch in RN - 46% sold April/2009: Ventura Ecoville – Curitiba/PR: 65% sold Government Housing Program “Minha Casa, Minha Vida” News on Living Launches in the near future Increased participation of economic projects in Cyrela’s portfolio Increased limits for SFH and FGTS eligibility: increase in debt transfers and sales Aquisition of Goldsztein 3rd JV partner acquired Work model to be implemented similar to that of RJZ Cyrela, in RJ Current Goldsztein Officers will remain in charge of the Southern Region Unit Increase of Cyrela’s participation in the 100% figures Due diligence To be concluded until June, 2009 4
    • News on Living Living’s Nationwide Activity Northern region Ceará Rio Grande do Norte Pernambuco Independent Activity New Headquarters Bahia Separate Accounting 100% Cyrela Espírito Santo Independent activity in all steps of the business: Land acquisition Real Estate Development Rio de Janeiro Sales Minas Gerais São Paulo Construction Customer Relationship Organic operation and in partnership with JVs Southern region CFC correspondent servicing all Brazilian regions 5
    • Construction Living Construtora Use of “Lean Construction” Concept Simple projects, easily executed, with repetitions, standardized and focused on management Assembly line Reduction of wastes and costs Increased productivity during works execution Increased construction quality Increased flexibility of requirements Flexibility of works execution schedule Increased costumer satisfaction Enhancement of construction methods for popular housing Product blueprint definition developed together with supplies Land bought to fit the product Price defined by product (not by sq.m.) In-house and trained labor 15% cost reduction expected 6
    • Launches in the near future Launches scheduled for the next months show more than 2 thousand units eligible to the Government Housing Program “Minha Casa, Minha Vida” Average PSV Price of Number of Project Region Estimate % Cyrela Unit (R$ Units (R$ thd) thd) Fatto Mansões Campinas – SP 215 228 48,953 92% Ventura Ecoville Curitiba – PR 169 191 32,246 40% Tumelero Porto Alegre – RS 132 214 28,159 50% Arboretto – phase 2 Porto Alegre – RS 154 286 44,097 50% Dez Curuçá São Paulo – SP 83 252 20,916 50% Fatto Jardim Botânico São Paulo – SP 130 236 31,646 71% Vitoria Pirituba São Paulo – SP 87 396 34,435 60% Fatto Sport Faria Lima Guarulhos – SP 118 277 32,816 79% Avanti Parque São Lucas São Paulo – SP 115 400 45,951 40% Ferraz de Parque dos Sonhos - phase 4 80 200 15,953 50% Vasconcelos – SP Liber Park Rio de Janeiro – RJ 112 380 42,453 75% Total 123 3,060 377,625 61% 7
    • Living’s launches in the quarter Most of the projects in the quarter were launched in March São Paulo - SP São Paulo - SP 55% sold 85% sold Economic Project Economic Project Avanti Guarulhos Mérito Vila Curuçá Launched in Mar/2009 Launched in Jan/2009 PSV: R$ 37.7 million PSV: R$ 21.8 million Units: 279 Units: 197 Average price: R$ 135 thd/ un Average price: R$ 111 thd/ un. Fortaleza - CE São Luís - MA 10% sold 100% sold Economic Project Mid-low Project Vivace Residencial Clube 1st phase Condomínio Brisas Life Launched in Mar/09 Launched in Mar/09 PSV: R$ 23.0 million PSV: R$ 50.4 million Units: 155 Units: 300 Average price: R$ 148 thd/ un. Average price: R$ 168 thd/ un. 8
    • Living launches and pre-sales – 1Q09 Launches Pre-sales in R$ million in R$ million 269 -51% 234 -48% 133 122 190 166 88 79 1Q08 1Q09 1Q08 1Q09 Cyrela Partners Cyrela Partners Average sales speed 1Q08 53% 32% 2% 1% 89% 2Q08 63% 21% 3% 2% 88% 3Q08 41% 18% 7% 66% 4Q08 35% 9% 44% 1Q09 26% 26% In 3 months In 6 months In 9 months In 12 months 9
    • Living’s landbank – 1Q09 Landank by unit price Potential PSV: R$ 8.5 billion (100%) 70,000 3,628 62,662 or R$ 6.1 billion (% Living) 60,000 22,309 50,000 93 Plots of land 40,000 17,867 30,000 18,858 20,000 Swaps: 66% 10,000 - Up to From From From Total R$ 100 thd R$ 100 thd to R$ 130 thd to R$ 200 thd to R$ 130 thd R$ 200 thd R$ 350 thd By Region By Segment Northeast 14% Southeast Super 65% North Economic Economic 3% 70% 24% South 18% Middle 6% Obs.: Calculations in units 10
    • Reserva Verde Serra, ES Launched in March 2009 Operational Results 11
    • Cyrela’s Launches in 1Q09 In January 2009, Absolutto, a project in Novo Hamburgo (RS) was re-launched and 65% sold São Paulo - SP São Paulo - SP 63% sold 88% sold Office Project Medium Standard Project NovAmérica Colorado NovAmérica Office Park Residence Park Launched in March/09 Launched in March/09 PSV: R$ 195.1 million PSV: R$ 82.6 milion Usable area: 32,979 sq.m. Usable area: 24,961 sq.m. Units: 548 Units: 216 São Paulo - SP Novo Hamburgo - RS 78% sold 65% sold Office Project Medium Standard Project Escritórios Santana Absolutto Launched in March/09 Re-launched in January/09 PSV: R$ 53.4 million PSV: R$ 30.7 million Usable area: 9,016 sq.m. Usable area: 9,405 sq.m. Units: 224 Units: 132 12
    • Launches Launches – in R$ million -32% 811 9 projects launched in 1Q09 554 (vs. 19 in 1Q08) Chronology of launches in the quarter 581 January: Absolutto in RS (re-launch) and 416 Mérito Vila Curuçá – Living in SP; March: 1Q08 1Q09 3 Living launches in Guarulhos – SP, São Cyrela Partners Luis – MA and Fotaleza – CE.; Escritórios Santana, NovAmérica Office Park, Novamerica Residencial Colorado Launches by region and by brand – 1Q09 in SP, and Reserva Verde in Serra – ES. SP 71% 1Q09 Launches: average price of R$ 244 thd /unit or R$ 3.6 thd /sq.m. Cyrela Living 76% 24% LIVING: 24% of 1Q09 launches RJ 0% Expansion 29% 13
    • Pre-sales Pre-Sales – in R$ million 1.7 thousand units sold Average price of R$ 284 thd/unit or 1,125 R$ 3.5 thd/sq.m. -55% Living: 24% of 1Q09 sales 502 Seller and Selling accounted for 51% of 778 quarter’s sales, or 56% considering only 346 the markets where they operate 1Q08 1Q09 Cyrela Partners Pre-Sales by region and by brand – 1Q09 SP 59% Cyrela Living 76% 24% RJ 13% Expansion 28% 14
    • Sales speed – Cyrela + Living Launches Sales Speed 1Q08 47% 32% 2%79% 2Q08 67% 10% 2% 80% 1% 3Q08 41% 13% 6% 59% 4Q08 31% 8% 40% 1Q09 35% 35% Launches In 3 months In 6 months In 9 months In 12 months VSO by quarter R$ million –Cyrela’s share 1Q09 Sales according to launch period R$ million–Cyrela’s share 44% 33% 55.4% 12% 8% 153 1% 0% 41.6% 116 27.7% 42 29 4 1 15.2% 12.6% launches launches launches launches launches Launches before 1Q09 2008 2007 2006 2005 2005 2Q08 3Q08 4Q08 1Q09 12M Pre-sales contracts % CBR % of 1Q09 pre-sales 15
    • Sales performance Price per unit From From From From From Up to Above R$ 100 thd to R$ 130 thd to R$ 200 thd to R$ 350 thd to R$ 500 thd to TOTAL R$ 100 thd R$ 1 million R$ 130 thd R$ 200 thd R$ 350 thd R$ 500 thd R$ 1 million 2006 98% 99% 92% 98% 89% 82% 61% 88% 1Q06 100% 99% 100% 2Q06 100% 100% 85% 74% 90% 3Q06 97% 100% 90% 79% 94% 90% 4Q06 98% 99% 91% 88% 86% 82% 45% 84% 2007 95% 89% 87% 85% 78% 88% 91% 87% Launch period 1Q07 94% 95% 92% 98% 83% 94% 2Q07 98% 99% 100% 84% 97% 3Q07 96% 95% 95% 69% 79% 99% 91% 4Q07 95% 88% 79% 79% 76% 90% 89% 84% 2008 75% 85% 78% 66% 63% 72% 58% 74% 1Q08 63% 96% 93% 74% 71% 85% 75% 85% 2Q08 99% 99% 85% 100% 90% 65% 90% 3Q08 68% 99% 76% 61% 68% 96% 49% 71% 4Q08 100% 56% 48% 73% 33% 14% 53% 2009 62% 19% 34% 45% 35% 1Q09 62% 19% 34% 45% 35% TOTAL Obs.: cálculo em unidades. 84% 87% 79% 77% 71% 83% 70% 79% 16
    • Units Delivered Units Delivered 12,000 3,178 2,211 1,266 2007 2008 2009e 1Q09 Units delivered and foreseen Units net of swaps Large projects delivered: Paulistânia (SP) and Les Residences de Monaco (RJ). 1.3 thousand units delivered in the first three months of 2009. 94% of units delivered were sold. 12 thousand units forecast to be delivered in 2009. Currently: 142 construction work sites throughout the country. 17
    • Debt Transfer Property to be financed by SFH: Increase of price limit from R$ 350 thd/unit to R$ 500 thd/unit Increase of price limit for eligibility of use of FGTS funds to R$ 500 thousand Increase of percentage financed from 70% to 90% of the unit value up to R$ 500 thousand Increase in demand for units in point of sales and in the Internet Increase of debt transfer of delivered units previously forecast to be financed by Cyrela Debts transfers Debt Unit Debt Transfer Projects Average Transfer in Total in R$ Price units million VEREDA IPIRANGA R$ 400 thd 10.5 71 GRAND LIFE SAÚDE R$ 400 thd 2.8 20 HUMANARI R$ 400 thd 6.2 27 PATEO POMPEIA R$ 480 thd 9.4 48 SARAU PINHEIROS R$ 500 thd 2.4 7 PAULISTÂNIA R$ 600 thd 9.9 29 Total 41.2 202 18
    • SFH Financing Closer relationship with Caixa Econômica Federal (CEF) R$ 243 million were contracted in 2009 R$ 357 million will be signed soon Amount forecast to be contracted until July/2009: R$500 million Growth of debt transfers Debt transfers totaled R$41 million in 1Q09 R$67 million of debt transfers being done Debt transfers forecast until July/2009: R$109 million Balance due in March 31, 2009: R$799 million SFH Financing Credit limit 8.1 R$ billion Contracted 4.3 Balance due: 0.8 Amount available 3.8 19
    • Landbank Geographical distribution in March 31, 2009 Southern region 5.1% RJ São Paulo Capital Nothern region City 39% 3.2% 19.5% São Paulo inlands 11.1% Southeast 71.5% Expansion Northeast 31% Rio de Janeiro 19.9% 38.7% Minas Gerais SP 0.4% 31% Argentina Espírito Santo 0.3% 1.8% Potential PSV: R$ 38.6 billion (100%) or R$ 30.6 billion (% Cyrela) Units in landbank: 138 thousand 193 plots of land – 69 of which outside the SP-RJ region Swaps achieving 72% 20
    • Landbank in units 126 thousand units elegible through SFH t hd 00 d 5 th R$ 0 13 to units R$ up in landbank to % 91 up % 27 140,000 4,955 6,698 1,013 138,307 18,766 120,000 32,931 100,000 80,000 37,219 60,000 40,000 17,867 18,858 20,000 - Up to From From From From From From Above R$ Total R$ 100 thd R$ 100 thd R$ 130 thd R$ 200 thd R$ 350 thd R$ 500 thd R$ 600 thd 1,200 thd to to to to to to R$ 130 thd R$ 200 thd R$ 350 thd R$ 500 thd R$ 600 thd R$ 1,200 thd 21
    • Financial Results Mérito Vila Curuçá São Paulo, SP Launched in March 2009 22
    • Financial Results – in R$ million Net Revenues +22% 671.5 550.8 1Q08 1Q09 Net Revenues Gross Income Backlog 39.8% 36.2% 37.2% 37.1% 37.5% - 4% +15% 5,124.2 4,920.6 4,081.7 252.1 219.5 1Q08 1Q09 2007 2008 1Q09 Gross Profit Gross Margin Revenue to be Recog. Gross Mg. To be Recog. 23
    • Financial Results – in R$ million EBITDA Net Profit 22.5% 12.4% 15.0% 17.2% +60% 151.2 +47% 100.5 94.5 68.5 1Q08 1Q09 1Q08 1Q09 Net Profit Net Margin EBITDA EBITDA Margin Expenses on Pre-Sales Contracts Expenses on Net Revenues 14.5% 12.6% 12.1% 11.6% 11.6% 10.9% 7.8% 7.6% 6.6% 9.6% 9.5% 8.5% 8.3% 7.6% 4.6% 6.7% 6.8% 5.6% 4.3% 2.6% 1Q08 2Q08 3Q08 4Q08 1Q09 1Q08 2Q08 3Q08 4Q08 1Q09 Selling Expenses Gen. & Admin. Expenses Selling Expenses Gen. & Admin. Expenses 24
    • Accounts receivable – in R$ million Accounts receivable performance Remuneration of receivable (R$ milion) (R$ million) 7,681 7,685 Finished units: IGP-M + 12% p.a. Under construction: INCC 5,618 7,685 831 2007 2008 1Q09 6,854 Receivables 3,095 Receivable schedule Units build (R$ million) Units under construcion Construction cost to Incur - sold 1,632 1,452 1,209 944 513 475 423 387 350 301 2009 2010 2011 2012 2013 2014 2015 2016 2017 Until 2028 25
    • Liquidity Debt Balance on (R$ million) March 31 Maturity Cost 2009 SFH 798.5 2009 to 2014 TR + 10.5% a 12.0% a.a. Debentures 1st issuance 500.0 2012, 2013, 2014 CDI + 0.48% a.a. Debentures 2nd issuance * 489.5 2018 CDI + 0.65% a.a. Nov/2010, Nov/2011, Bradesco (stand-by) and others 264.3 CDI + 0.81% a.a. Nov/2012, Nov/2013 Loans – foreign currency 46.3 Sep/2011 Libor + 3.5% (US$ 20 million) Total Debt with SFH 2,098.6 Total Debt without SFH 1,300.1 Net Debt with SFH Cash and Cash Equivalents (725.7) = 2.4 times LTM EBITDA Net Debt with SFH 1,372.9 Net Debt without SFH 574.3 Net debt without SFH = 1.0 time LTM EBITDA * Repactuation in 2010 and 2011 26
    • Delays and Cancellations Delays 2.00% 1.64% 1.52% 1.43% 1.35% 1.38% 1.92% 1.34% 1.79% 1.09% 1.59% 1.43% 1.37% 1.39% 1.26% N 08 M 08 A 8 9 A 08 O 8 Ja 8 Ju 08 S 08 Fe 08 Fe 09 M 8 08 M 9 D 08 -0 -0 -0 -0 0 0 - - l- - - n- n- - b- n- b- ct pr ep ar ay ar ug ec ov Ju Ja Delays above 31 days Cancellations 0.26% 0.26% 0.27% 0.23% 0.23% 0.22% 0.22%0.23% 0.21% 0.20% 0.17% 0.20% 0.18% 0.14% 0.07% Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- 08 08 08 08 08 08 08 08 08 08 08 08 09 09 09 Cancellation index = cancellations / active clients Obs.: Taking into consideration only clients portfolio managed by Cyrela 27
    • Housing Program Minha Casa, Minha Vida 28
    • The program Total number of houses to be built by wage range: Minimum Wages Number of houses Houses per region 0 to 3 MW 400 thd Southeast 37% 3 to 4 MW 200 thd Northeast 34% 4 to 5 MW 100 thd South 12% 5 to 6 MW 100 thd North 10% 6 to 10 MW 200 thd Midwest 7% The price of the property to be financed varies according to the region as follows: Municipality Amount SP, RJ and FD Metropolitan Regions R$ 130 thd Municipalities with more than 500thd inhabitants R$ 100 thd and other capital cities and metropolitan regions Other municipalities R$ 80 thd Maximum unit price for the 3 to 6 wages range is R$ 100 thd. 29
    • General Terms and Conditions Deposit Guarantee Fund: loss of income and deliquency 3 to 5 wages: 36 installments 5 to 8 wages: 24 installments 8 to 10 wages: 12 installments Terms and Conditions: Effectiveness: contract term, after payment of 6 installments Minimum Payment: 5% of the summ of the installments Payment to the fund: 0.5% of the installment Decrease in notary expenses for the customer: 0 to 3 minimum wages: no cost. 3 to 6 minimum wages : 90% decrease 6 to 10 minimum wages: 80% decrease Decrease in notary expenses for the developer: Property up to R$ 60 thd: 90% decrease Property up to R$ 80 thd : 80% decrease Property up to R$ 130 thd: 75% decrease 30
    • Up to 3 Minimum Wages = R$ 1,395 Program details Capital cities and metropolitan regions, municipalities with more than 100 thousand inhabitants, and in special cases municipalities with 50 to 100 thousand inhabitants, according to their housing deficit. No project delivery insurance Houses or apartments Up to 500 units per module or 250 unit condos. Pre-defined blueprints Blueprint 1 – Ground houses – 32 sq.m. of usable area Blueprint 2 – Apartment – 37sq.m. of usable area Eligibility for buying Not having benefitted previously from any government social housing program Not owning a private house and not having a financing contract in any other State Payment of 10% of the income for 10 years, with minimum installment of R$ 50,00, corrected by TR and register of the property by the wife No down payment and no payents during construction No charges for insurances (death and permanent disability or physical damage of the property) 31
    • Up to 3 Minimum Wages = R$ 1,395 Contract details Upfront payment of the land Fund transfer according to construction works development (24 hours after work site check) No insurance for completion of works Special Tax Regime– (PIS, COFINS, CSLL and IRPJ from 7% to 1%) No marketing expenses, once CAIXA is responsible for sales No advertising expenses Pre-defined price – SINAPI table (currently being discussed) + not included items (BDI, project, construction site, among others) Standard Cost/sq.m. (R$) Normal 909.00 Low 653.00 Minimum 555.00 SINAPI table – Esimated cost for a typical blueprint: one story house (strip foundation) including living room, 2 bedrooms, corridor, bathroom and kitchen. Usable area: 34,32 sq.m. 32
    • Up to 3 Minimum Wages = R$ 1,395 Feasibility Analysis Cost reduction Taxes –5.5% related to PIS and CONFINS on the revenue. According to the new rule, it is possible to extinguish this charge and even have a further discount of 0.5% (totaling 6%) ITBI – it is usually around 2% of the land value (sale value). For this segment, ITBI usually represents 8% of the PSV. This represents a reduction of 0.16% of the PSV. Commercial expenses: reduction of 7.5% Estimate reduction in sales price: Item % of PSV (reduction) Taxes 6.00% ITBI 0.16% Brokerage Fees 3.50% Advertising 4.00% Total 13.66% 33
    • From 3 to 10 minimum wages: from R$ 1,396 to R$ 4,650 Construction works financing agreements : Financing of 100% of the construction cost with advanced transfer of up to 10% of the total cost or land cost (whichever is lower) 30% sold or 20% of units financed by CEF or according to sales speed analysis (15%) Transfers according to construction works development Interest rates: 8% p.a. + TR TAO: 1.5% of the amount transferred Construction work completion insurance (0.6% of the work cost) and engineering risk Guarantees: Guarantee by the owner of the construction company/RE developer Mortgage of the units– 1.3x the amount financed. Payment term up to 24 months after completion of construction works During construction works: payment of interests Requirement of insurance for completion of construction works and for engineering risks Maximum of 500 units per module 34
    • From 3 to 10 minimum wages: from R$ 1,396 to R$ 4,650 Eligibility for buying: Not having active financing contract with SFH Not being granted any discount by FGTS since May 1st 2005 when signing a housing financing contract Not being the owner, assignee, promissory buyer or not having the right of acquisition of any other urban or rural residential property at the domicile region or in the region where the domicile is intended to be established SAC and PRICE tables Percentage of total income assigned for payments: 20% Payment term: up to 30 years Financing up to 100% of the property price Optional down payment Nominal Effective Wages Interests Interests Interests range (p.m.) (p.a.) (p.a.) 3 to 5 MW 5% 5.16% 0.42% 5 to 6 MW 6% 6.17% 0.50% 6 to 10 MW 8.16% 8.47% 0.68% 35
    • From 3 to 10 minimum wages: from R$ 1,396 to R$ 4,650 The table below shows the general requirements – Ref. SP, RJ, FD and metropolitan regions: < 3 MW 4 MW 5 MW 6 MW 7 MW 8 MW 9 MW 10 MW Wages 1,380 1,840 2,300 2,760 3,220 3,680 4,140 4,600 Max. Amount of 276 368 460 552 644 736 828 920 installments (20%) Maximum amount to 51,628 68,837 86,047 92,529 87,037 99,471 111,904 124,338 be financed Maximum subsidy 23,000 16,000 9,000 2,000 - - - - Purchasing power 74,000 84,000 95,000 94,000 87,000 99,000 111,000 124,000 Term (months) 360 360 360 360 360 360 360 360 Nominal Rate (p.a.) 5.00% 5.00% 5.00% 6.00% 8.16% 8.16% 8.16% 8.16% Effective Rate (p.a.) 5.12% 5.12% 5.12% 6.17% 8.47% 8.47% 8.47% 8.47% Rate (p.m.) 0.42% 0.42% 0.42% 0.50% 0.68% 0.68% 0.68% 0.68% Insurance (% of 1.5% a 1.5% a 1.5% a 1.5% a 1.5% a Exempt Exempt Exempt installment) 6.64% 6.64% 6.64% 6.64% 6.64% New range accepted 36
    • Infrastructure Characteristics Financing up to 100% of the total cost Advancement of 10% of the total cost at the signature of the contract Funds from the Union available for subsidies: R$ 5 billion Guarantees Guarantee by the developers Mortgage or deed of trust for the unsold units Lien of the creditory rights related to the units sold Bank guarantee Term Grace period: up to the completion of construction works, limited to 18 months Payment: 36 months Rates TJLP + 1% p.a. 37
    • General Details Environmental Lincenses: faster and simpler. A Resolution to be passed by CONAMA by the end of April defines: Uniform and simplified procedure for granting of environmental licenses for projects occupying areas up to 100ha or 1.000.000 sq.m. Single license for the whole project Maximum of 30 days for environmental license granting Unified criteria for all federal entities Engineering analysis Decrease from 225 to 30 items to be analyzed Brazilian norms and environmental laws Acceptance of projects analyzed in other regions, respecting local legislation and new implementation requirements. Approval by CAIXA Cycle lowered from 120 to 45 days. Approval of credit granting to the client in up to 15 days (previously: 30 days) 38
    • Yearly Financial Information Acqua Verde Curitiba, PR Launched in December 2008 39
    • Pre-Sales to be Recognized R$ million 2007 2008 1Q09 Sales to be recognized at the beginning of the period 1,597.1 4,081.6 5,124.2 Net sales recorded in the period 4,515.2 3,974.4 481.9 Revenues recognized in the period (2,030.3) (2,930.8) (685.0) Sales to be recognized at the end of the period 4,081.6 5,124.1 4,920.6 Cost of units sold to be recognized (2,604.7 (3,217.2) (3,095.1) Selling Expenses (26.3) (37.6) (16.4) Gross profit to be recognized 1,476.9 1,906.9 1,809.1 Percentage of gross profit 36.2 37.2% 37.1% 40
    • Financial Results – in R$ million Net Revenues 2,667.1 +56% 1,707.3 +12% 633.7 695.8 708.4 4Q07 3Q08 4Q08 2007 2008 Net Revenues Gross Income Backlog 42.3% 41.2% 40.1% 40.1% 37.2% 36.2% 36.5% +52% 1,070.7 +25% 5,124.2 4,081.7 703.2 +2% 254.2 294.2 258.6 4Q07 3Q08 4Q08 2007 2008 2007 2008 Revenue to be Recog. Gross Mg. To be Recog. Gross Profit Gross Margin 41
    • Financial Results– in R$ million EBITDA 22.9% 21.8% 20.1% 17.5% 15.9% +37% 535.9 390.5 +2% 151.4 110.7 112.4 4Q07 3Q08 4Q08 2007 2008 EBITDA EBITDA Margin Expenses on Pre-Sales Contracts Expenses on Net Revenues 14.5% 13.6% 12.1% 11.6% 11.6% 11.9% 11.7% 11.3% 7.6% 6.7% 5.6% 9.6% 8.9% 4.6% 4.6% 8.1% 8.5% 3.8% 7.6% 7.7% 7.7% 6.7% 5.6% 4.0% 4.4% 2.5% 2.6% 3.0% 4Q07 1Q08 2Q08 3Q08 4T08 2007 2008 4Q07 1Q08 2Q08 3Q08 4Q08 2007 2008 Selling Expenses Gen. & Admin. Expenses Selling Expenses Gen. & Admin. Expenses 42
    • Financial Results – in R$ million Adjusted Net Profit 14.4% 18.2% 10.4% 12.6% 13.7% +18% 366.5 311.5 -3% 91.4 72.4 89.0 4Q07 3Q08 4Q08 2007 2008 Adjusted Net Profit Adjusted Net Margin Adjusted in 2007 for the valorization of investiment in Agra 43
    • Barra Prime Office Rio de Janeiro – RJ Launched in Nov/08 Appendix 44
    • Mortgage Credit Available Mortgage Loans Funding (in R$ billion) Mortgage Loans Record = 627.000 in 1980 45.8 40.6 % 600 : 45 15.0 % 09e 10.5 e: 18 20 500 0 3- 20 09 Contracts (thousands) 03- R 20 20 25.2 400 CAG GR CA 16.3 6.9 300 10.4 30.0 30.8 200 7.0 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 3.0 4.9 1.9 1.9 1.8 2.2 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009e 95 96 97 98 99 00 01 02 03 04 05 06 07 08 e 09 19 19 19 19 19 20 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 Housing Program Mortgage to GDP Ratio “Minha Casa, Minha Vida” (in R$ billion) 280% 249% 1.0 230% 7.5 166% 180% 156% 141% 137% 125% 130% 111% 34.0 73% 25.5 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 FEDERAL FGTS BNDES TOTAL 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 BUDGET rla Me Po A Ire Hu ec th the u Cz Ne So Mortgage credit to GDP Ratio Total Credit to GDP Source: Programa “Minha Casa, Minha Vida” Source: Central Bank and Bradesco Corretora 45
    • Demand in Expansion São Paulo Rio de Janeiro Supply to Sales - 12 month curve in units Supply to Sales - 12 month curve in units Apr-02 Dec-00 13.8 Apr-03 Jan-05 Aug-05 Dec-08 11.9 12.2 Mar-06 Jan-05 18.7 11.6 Jun-04 Jul-08 17.4 10.0 15.6 Dec-05 Feb-08 14.1 Jun-07 Jan-09 12.2 Feb-07 Sep-07 12.3 13.9 Sep-06 6.4 Jun-08 5.9 10.4 10.5 9.5 4.6 D 04 D 05 D 06 D 07 D 08 Se 04 Ju 5 Se 05 Ju 6 Se 06 Ju 7 Se 07 Ju 8 Se 08 M 04 M 05 M 06 M 07 8 Ap -00 g 1 ec 1 Ap -01 g 2 ec 2 Ap -02 g 3 ec 3 Ap -03 g 4 ec 4 Ap -04 g 5 ec 5 Ap -05 g 6 ec 6 Ap -06 g 7 ec 7 Ap -07 g 8 ec 8 8 -0 -0 -0 -0 -0 Au r-0 D -0 Au r-0 D -0 Au r-0 D -0 Au r-0 D -0 Au r-0 D -0 Au r-0 D -0 Au r-0 D -0 Au r-0 D -0 -0 n- p- n- p- n- p- n- p- n- p- - - - - ar ar ar ar ec ec ec ec ec ec Ju D Supply to sales Supply to sales Source: SECOVI-SP/EMBRAESP Source: ADEMI-RJ Porto Alegre Fortaleza Supply to Sales - 12 month curve in units Supply to Sales - 12 month curve in units Aug-04 Aug-05 Apr-02 23.8 24.2 Dec-99 24.9 Jan-06 Jun-06 Mar-98 21.8 Dec-96 19.1 Jan-04 18.3 20.0 Aug-07 37,622.0 Dec-06 Jan-01 16.9 17.4 15.8 Jan-01 15.8 15.2 15.4 Feb-09 Apr-99 12.8 fev-09 12.1 10.7 7.4 O -97 O -02 O -07 g 8 Ja -98 b 0 J u - 01 g 3 Ja -03 b 5 J u - 06 g 8 Ja -08 a 7 Ju -99 ov 9 Ap -99 0 e 1 a 2 Ju -04 ov 4 Ap -04 5 e 6 a 7 09 ay 6 ay 1 ay 6 O -00 O -05 J a - 01 Fe - 0 3 J a - 06 Fe - 0 8 Au -01 Ju -02 N -02 Ap -02 Ju 04 D l-04 Au -06 Ju -07 N -07 Ap -07 09 M -99 M -00 Se -03 M -04 M -05 Se -08 Au r-9 N n- 9 Fep-0 D l-0 Au r-0 N 0 Fep-0 D l-0 Au r-0 M c-9 M t-9 Se r-0 M c-0 M t-0 Se r-0 M c-0 M t-0 n- n- b- b- n n ay ay g p g p ov ov ar n n ec r ar n n r ct ec ct c c c e D D Supply to sales Supply to sale Source: SINDUSCON-RS Source: SINDUSCON-CE/FIEC 46
    • Sales Performance – Residential – 2008 São Paulo Rio de Janeiro (R$ million) (R$ million) 65,833 40,520 4,123 1,949 Market Market Cyrela Cyrela 4,794 720 384 6,050 Launches in SP Pre-Sales in SP Launches in RJ Pre-Sales in RJ 9% 12% 17% 20% Launches Pre-Sales Launches Pre-Sales Cyrela’s stakes indicate strong sales performance in the main markets Source: Cyrela MID 47
    • Launches 2004 to 2008 - SP Metropolitan Region Units Potential Sales Value (R$ million) 65,833 17,822 17,422 58,512 9 ,6 11 7 ,0 3 0 5 ,0 5 2 7 ,2 8 2 18 ,8 6 4 11,274 19 ,0 7 4 34,345 35,350 9,607 28,782 3 ,6 8 8 4 ,0 5 1 7,997 3 ,9 3 9 7 ,3 2 6 3 ,3 2 0 5 ,6 2 6 3 ,2 2 4 8 ,5 6 7 10 ,12 9 5 ,3 0 7 2 8 ,9 8 7 3 ,119 2 1,5 2 4 3 ,8 9 4 8 ,9 3 7 10 ,2 6 9 3 ,2 4 2 12 ,7 2 1 1,9 7 7 4 ,0 7 2 4 ,15 4 1,8 0 3 1,9 2 8 2 ,6 8 8 11,3 14 11,8 2 1 10 ,8 8 4 8 ,4 4 9 8 ,3 7 1 1,0 9 8 1,117 753 972 760 2004 2005 2006 2007 2008 2004 2005 2006 2007 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 48
    • Launches 2004 to 2008 - RJ and Region Units Potential Sales Value (R$ million) 15,911 4,121 13,350 3,446 4 ,4 19 3,147 2 ,3 6 3 1,8 9 4 1,2 7 2 2,354 7,831 3 ,8 8 5 4 ,4 8 4 7,019 1,7 2 9 6,856 1,7 3 4 883 1,4 9 1 1,353 975 1,2 2 5 3 ,6 6 6 1,6 7 7 2 ,5 11 4 ,5 5 9 5 ,8 0 0 509 659 690 1,14 1 2 ,6 8 0 759 980 791 3 ,0 8 0 273 1,14 2 2 ,4 4 9 200 659 907 1,17 1 506 1,3 0 2 221 203 2 19 2 11 69 2004 2005 2006 2007 2008 2004 2005 2006 2007 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 49
    • Excellent Track Record of Growth Launches (in R$ million) Pre - Sales Contracts (in R$ million) = 49% = 48% CAGR CAGR 008 2008 20 04 – 2 2004 – 5,393 4,827 4,612 4,392 2,917 1,915 972 1,211 3,428 3,332 949 1,023 3,074 2,815 1,924 1,004 1,369 700 713 755 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 Cyrela Partners Cyrela Partners Consistent track record of growth in Launches and Pre-sales Contracts 50
    • Cyrela Brazil Realty 2005 2006 2007 2008 Launches (Full Year) R$ 1.2 bn R$ 2.9 bn R$ 5.4 bn R$ 4.9bn Pre-sales (Full Year) R$ 1.0 bn R$ 1.9 bn R$ 4.4 bn R$ 4.7bn Landbank 3.0 mn sq.m. 4.9 mn sq.m. 8.8 mn sq.m. 11.2 mn sq.m. Low income units 0 720 6.7 thd 10.5 thd Gross Margin Baixa Renda 48.5% 524.4 42.2% 688.8 41.2% 688.8 40.1% 688.8 EBITDA Margin* Baixa Renda 27.1% 524.4 22.3% 688.8 22.9% 688.8 20.1% 688.8 Net Margin* Baixa Renda 23.2% 524.4 21.7% 688.8 24.7% 688.8 13.7% 688.8 # Homebuilders listed 2 4 21 20 Market Cap Cyrela Brazil Realty R$ 2.4 bi R$ 4.5 bi R$ 8.6 bi R$ 3,3 bi Market Cap of the Industry R$ 6.0 bi R$ 10.0 bi R$ 48.1 bi R$ 13,4 bi Number of cities 3 8 47 55 Employees 202 327 529 514 Seller Brokers & Team 100 200 743 637 *Adjusted for IPO expenses and according to BR GAAP before Law 11,638 51
    • 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 * Goldsztein Cyrela is under the process of acquisition as stated in the Relevant Fact of April 23 2009. 52
    • Geographical Expansion Presence in 55 cities in 17 states of Brazil and Buenos Aires in Argentina 69 Projects outside SP – RJ region R$ 11.8 billion of PSV (Cyrela’s stake: 62,4%) 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 | João 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 53
    • 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 54
    • 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 55
    • 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$10 mn), Unit price 80% financed by partner banks Client is fully financed by the banks after the assignment of the financing to them 56
    • Financing: Interest and Term Impact Monthly Installment (R$) Model: Loan Term (years) Unit Value: R$ 120,000 10 15 20 25 30 12% 1,377 1,152 1,057 1,011 987 Real Interest Rate (%) Loan-To-Value: 80% 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 57
    • Cyrela Brazil Realty S.A. Empreendimentos e Participações Av. Presidente Juscelino Kubitschek, 1455, 3th floor – Itaim Bibi – ZIP Code 04543-011 – São Paulo/SP – Brazil www.cyrela.com.br/ir