2. Managers Track-record
1999-2005 2006 2007 2008 1S09
•Group CR2 is •Sector in expansion •Sector gains access •Anticipating the •Modest recovery in
founded in 1999 mode to capital markets impact from the economic activity,
global financial but visibility still
•Activities in Credit •Raised R$60mm via •IPO raises R$307mm crisis, the pace of limited
and Real Estate fund structure new launches is
reduced starting in •Lower interest rates
•Business model 1H08
•Brazilian real estate •Banks increase enables flexibility to and controlled
sector still in its credit availability to accelerate when inflation are
infancy construction finance there is ample liquity •Priorities are to positives
and home buyers secure financing for
projects, preserve •Government
•CR2 launches 11 •Total PSV launched cash
projects with PSV •CR2 of R$774mm, and housing package to
worth R$218mm Empreendimentos CR2’s share of provide
Imobiliários SA is R$535mm •Total PSV launched oppotunitites
founded of R$347mm, and
CR2’s share of •Focus remains in the
R$293mm economic segment
•Shift in target
market from (92% of land bank)
high/middle income •Launches consistent
to economic with initiative to •Initiatives to
segment focus on the preserve cash and
economic segment, sell inventories are
and to expand into showing results
the São Paulo
market
2
3. 1Q09 Highlights
1Q09 net profit of R$1.3mm (R$0.03 EPS) vs R$486.000 (R$0.01 EPS) in 1Q08
Initiatives were focused on preserving the cash position:
We did not carry out any launches in the quarter, and focused on selling inventories
We adjusted construction outlays to match disbursements from construction financing
lines
We accelerated the process of transferring home buyers to banks/CEF
Drastic reduction in cash burn to R$5mm in 1Q09, from R$44mm in 4Q08, finished 1Q09 with
R$39mm cash on the balance sheet
Corporate debt was R$19mm and construction financing (SFH) was R$68mm, which equate to
low leverage levels with net debt/equity = 13%
After the launch of the housing program Minha Casa Minha Vida, we achieved our goal to sign
an additional 5 contracts with Caixa Econômica Federal (CEF), taking the total to 7 projects or
R$281mm
Well positioned to benefit from the housing program Minha Casa Minha Vida, given exposure
to the economic segment and know-how to operate with CEF—the preliminary results are positive
3
4. 1Q09 Operational Highlights
In 1Q09 we continued to focus on reducing inventories without any new launches, which
limited the speed of sales
1Q09 contracted sales were better than 4Q08 reaching R$24mm (+55% Q/Q) and CR2’s share
at R$19mm (+52% Q/Q)
Sales in April already benefited from the housing program Minha Casa Minha Vida, presenting
an improvement >50% vs the average monthly rate in 1Q09
Contracted Sales (R$ mm)
37,2
10,0
24,0
4,9
15,5
27,2 3,0
19,1
12,6
1Q08 4Q08 1Q09
CR2 Partners
4
5. Sales Historical Trend
Average Price Units Sold (R$)
326.292
209.621 204.762
166.422 164.587 168.923
116.630 112.891
101.154
87.331
2006 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
5
6. Inventory at Market Value & SoS
Inventory at the Contracted
Period Launches (CR2's Inventory at the
Beginning of Sales (CR2's SoS
(R$ mm) share) End of Period
Period share)
2006 0,0 33,4 11,9 21,5 35,7%
1Q07 21,5 62,4 31,5 52,4 37,6%
2Q07 52,4 27,0 18,5 60,8 23,3%
3Q07 60,8 63,1 32,4 91,6 26,1%
4Q07 91,6 183,9 59,2 216,3 21,5%
1Q08 216,3 47,9 27,2 237,0 10,3%
2Q08 237,0 131,3 144,4 223,9 39,2%
3Q08 223,9 113,9 67,6 270,2 20,0%
4Q08 270,2 0,0 12,6 257,7 4,6%
1Q09 257,7 0,0 19,1 238,6 7,4%
SOS (CR2’s share): *contracted sales in the period / (inventories at the beginning of the period + launched PSV in the period net of physical exchanges)]
Presents a downward trend
1Q09 = 64% of Shareholders’ Equity 6
7. Inventory at Market Value Profile
Inventory at Market Value - Construction Status Inventory at Market Value - Average Price
4% 11%
22% Completed
R$350k - R$500k
Under Construction R$220k - R$350k
29%
60%
Construction not < R$220k
Started
74%
100% of inventory
eligible to SFH
financing
7
8. Projects Delievery - Schedule
Delivery Schedule (Units Sold and Inventory)
1.600 1.484
1.400
1.200
1.021
1.000 952
909
800 750 763
600
400 58%
90% 74%
82%
200 51% 53% 172
- 49%
2T09 3T09 4T09 1T10 2T10 3T10 4T10
Sold Inventory
7 projects to be concluded in 2009 with total PSV of R$376mm and CR2’s share at R$261mm
71% of the 2,680 units to be delivered in 2009 already sold 8
9. Financing
Total PSV Project Delivery -
Project Bank Type of Funding Financing Status Line of Credit
(R$ MM) Forecast
Green Park 3000/4000 55,7 Itaú "Repasse nas Chaves" Dec-2008 Contract Signed - transfer of credit in progress
Verano I 130,0 Itaú "Plano Empresário" Aug-2009 Contract Signed - financing kicked-in Itaú
Verano II 105,0 Itaú "Plano Empresário" Mar-2010 Contract Signed - financing kicked-in R$250 milion
Parque das Águas 140,0 Itaú "Plano Empresário" Mai-2010 Contract Signed - financing kicked-in
Parque das Águas 140,0 Unibanco "Repasse na Planta" Dec-2010 Contract Signed - transfer of credit in progress Unibanco
Splendore Valqueire I 15,9 Unibanco "Repasse na Planta" Jul-2009 Contract Signed - transfer of credit in progress R$29 milion of PSV
Villaggio Del Mare 58,9 Santander "Plano Empresário" Jul-2009 Contract Signed - financing kicked-in Santander
Barra Allegro 41,5 Santander "Plano Empresário" Dec-2009 Contract Signed - financing kicked-in R$100 milion of PSV
Verano III 67,0 Bradesco "Plano Empresário" Mar-2011 Contract in Process - To be signed in May/June Bradesco R$90 milion
Felicittá 29,3 Real "Plano Empresário" Apr-2010 Contract in Process - To be signed in May/June Real R$12 milion
Via Parque 4,9 CEF "Repasse nas Chaves" Mar-2008 Contract Signed - transfer of credit in progress
Mirante Bonsucesso 28,4 CEF "Crédito Associativo" Mai-2009 Contract Signed - financing kicked-in
Top Life Itamaraty 43,0 CEF "Crédito Associativo" Feb-2010 Contract Signed - disbursements in May/June
(1)
Villagio do Campo 65,0 CEF "Crédito Associativo" Jun-Dec 2009 Contract Signed - disbursements in May/June CEF
Premium Cpo. Grande 47,0 CEF "Crédito Associativo" Jun-2010 Contract Signed - disbursements in May/June R$ 2,5 bilion of PSV
Acqua Park 67,3 CEF "Crédito Associativo" Jul-2010 Contract Signed - disbursements in May/June
Top Life Park 25,3 CEF "Crédito Associativo" Jul-2010 Contract Signed - disbursements in May/June
Jardim Paradiso 36,8 CEF "Crédito Associativo" Dec-2009 Letter of Credit - Under engineering analysis at CEF
(1) Commitment signed with CEF in July 2007. The R$2.5 billion will fully cover Cidade Paradiso.
CEF update:
First disbursements in Crédito Associativo
Total of 7 projects financed by CEF, with a total PSV of R$281mm and CR2’s share at R$239mm
Know-how and good relationship
9
11. Results to be Recognized
1Q09 revenue to be recognized of R$285mm and results to be recognized of R$92mm (32,2%
margin)
On and off balance sheet receivables totalled R$527mm in 1Q09, of which R$151mm are
short-term
Revenues and Results to be Recognized (R$ 000) 1Q09 4Q08 4Q07
Revenues to be Recognized 284.746 311.074 195.918
Cost of Units Sold to be Recognized 193.016 206.360 139.923
Gross Profit to be Recognized 91.730 104.714 55.995
Gross Margin to be Recognized 32,2% 33,7% 28,6%
11
12. Capital Structure / Liquidity
1Q09 liquidity update: cash position of R$39mm and corporate debt of R$19mm
Cash burn was reduced to R$5mm in 1Q09, including a positive cash flow in March
Important progress in disbursements of financing lines:
SFH disbursements were R$27mm in 1Q09, almost double the amount in 4Q08, reaching
R$68mm on the balance sheet, we still have R$170mm in contracted SFH financing to be
disbursed
First disbursement of the Crédito Associativo from CEF (R$6mm from one project)
After the launch of Minha Casa Minha Vida we signed another 5 contracts with CEF,
bringing the total to R$281mm
Optimization of the transfer of receivables from completed units, which totalled R$28mm
in 1Q09
Low leverage with a net debt/equity of 13% (including SFH financing)
12
13. Land Bank (To Be Launched)
Average Price Total PSV CR2's PSV
Development City (State) Segment Units % CR2
(R$ 000) (R$ MM) (R$ MM)
Jardim Paradiso II – III Nova Iguaçu (RJ) Economic 68 1.283 87,0 80,9 93%
Javri Santo André (SP) Economic 174 190 33,0 28,4 86%
Colônia Paraíso S. J. Campos (SP) Economic 82 392 32,0 27,5 86%
Manaú 2 Guarulhos (SP) Economic 81 420 34,0 29,2 86%
Splendore Valqueire II Rio de Janeiro (RJ) Economic 156 160 25,0 20,0 80%
Sta. Cecília – Madureira I Nova Iguaçu (RJ) Economic 50 1.613 80,0 64,0 80%
Barrartes Rio de Janeiro (RJ) Commercial 237 507 120,0 84,0 70%
Sta. Cecília – Madureira II Nova Iguaçu (RJ) Economic 50 1.612 80,0 64,0 80%
Pq. das Águas II São Gonçalo (RJ) Economic 162 1.152 187,0 149,3 80%
Pq. das Águas III São Gonçalo (RJ) Economic 171 492 84,0 67,2 80%
Pq. das Águas IV São Gonçalo (RJ) Economic 89 942 84,0 67,2 80%
Warehouse ABEAR Rio de Janeiro (RJ) Commercial 591 389 230,0 161,0 70%
Cidade Paradiso Nova Iguaçu (RJ) Economic 72 30.183 2.180,0 2.180,0 100%
Total 83 39.335 3.256,0 3.022,7 93%
13
14. Segments of Operation
Launches 2008 Land Bank
8%
92%
100%
Economic Commercial
Economic
14
15. Launches to Date
Launched Total PSV CR2's PSV
Development City (State) Launch Date Segment Sold Units % Sold % CR2
Units (R$ MM) (R$ MM)
Green Park 3000/4000 Barra (RJ) mar/sep 06 Middle-Income 240 201 84% 55,7 33,4 60%
Verano I Barra (RJ) mar/sep/oct 07 Middle-Income 395 309 78% 130,0 78,0 60%
Villaggio Del Mare Recreio (RJ) may/07 Middle-Income 120 103 86% 58,9 30,6 52%
Splendore Valqueire I V. Valqueire (RJ) jul/07 Economic 120 114 95% 15,9 12,7 80%
Verano II Barra (RJ) sep/07 Middle-Income 346 214 62% 105,0 63,0 60%
Parque das Águas I S. Gonçalo (RJ) oct/07 Economic 1.058 506 48% 140,0 112,0 80%
Verano III Barra (RJ) oct/07 Middle-Income 172 84 49% 67,0 40,2 60%
Barra Trade Barra (RJ) nov/07 Comercial 5 0 0% 28,0 19,6 70%
Barra Allegro Barra (RJ) nov/07 Middle-Income 144 109 76% 41,5 29,0 70%
Mirante Bonsucesso Guarulhos (SP) mar/08 Economic 368 360 98% 28,4 24,4 86%
Via Parque Caxias (RJ) mar/08 Economic 99 60 61% 4,9 3,2 66%
Felicittá Jacarepaguá (RJ) mar/08 Economic 230 217 95% 29,3 20,5 70%
Top Life Itamaraty Santo André (SP) apr/08 Economic 417 412 99% 43,0 37,0 86%
Villagio do Campo Campo Grande (RJ) jun/08 Economic 999 670 67% 65,0 52,0 80%
Premium Cpo. Grande Campo Grande (RJ) jun/08 Economic 196 144 73% 47,0 42,3 90%
Acqua Park Guarulhos (SP) jul/08 Economic 747 304 41% 67,3 57,9 86%
Top Life Park Santo André (SP) jul/08 Economic 200 196 98% 25,3 21,8 86%
Jardim Paradiso I Nova Iguacu (RJ) sep/08 Economic 534 228 43% 36,8 34,2 93%
Cummulative Total 6.390 4.231 66% 989,0 712,0 72%
In 2006* 240 43 55,7 33,4 60%
In 2007* 2.360 1.126 586,3 385,2 66%
In 2008* 3.790 2.920 347,0 293,4 85%
In 2009* 0 142 0,0 0,0 0%
15
16. IR Contact
Investors Relations
Rogério Furtado
CFO and IR Officer
Daniel Grozdea
IR Manager
www.cr2.com.br/ir
phone: (21) 3095-4600
(21) 3031-4600
16
17. Disclaimer
This presentation contains certain statements that are neither reported financial results or other historical information. They
are forward-looking statements.
Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially
from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are
beyond CR2’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of
other market participants, the actions of governmental regulators, the Company's ability to continue to obtain sufficient
financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company
operates or in economic or technological trends or conditions, inflation and consumer confidence, on a global, regional or
national basis.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of
this document. CR2 does not undertake any obligation to publicly release any revisions to these forward looking statements
to reflect events or circumstances after the date of this presentation.
17
