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Gafisa day Presentation Gafisa day Presentation Presentation Transcript

  • Gafisa Day Presentation March 11, 2009 1
  • Important Notice • We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management, and on information currently available to us. Forward-looking statements include statements regarding our intent, belief or current expectations or that of our directors or executive officers. • Forward-looking statements also include information concerning our possible or assumed future results of operations, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions. • Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future results and shareholder values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict. 2
  • Agenda Introduction Market and Macroeconomic Overview Gafisa: the Company Gafisa Segment AlphaVille Tenda Wrap–up and Q&A Period 3
  • Agenda Introduction Market and Macroeconomic Overview Gafisa: the Company Gafisa Segment Alphaville Tenda Wrap–up and Q&A Period 4
  • Management present Wilson Amaral, CEO Duilio Calciolari, CFO João Audi, Managing Director, AlphaVille Antonio Carlos Ferreira, Managing Director, Gafisa Carlos Trostli, CEO Paulo Mazzali, CFO 5
  • Our Company Launches R$ million 2004-2008 CAGR: 87% 1954 Gafisa founded 4.195 2004 GP takes control of the Company 2.236 1.005 652 200 2005 Equity Int’l (Sam Zell) invests 2004 2005 2006 2007 2008 IPO 2006 AlphaVille Acquisition Sales R$ million 2004-2008 CAGR: 78% Follow-on Equity Offering 2.578 2007 NYSE listing 1.627 995 60% control of Tenda 2008 450 Equity Int’l increases stake by 5% 254 2004 2005 2006 2007 2008 6
  • Agenda Introduction Market and Macroeconomic Overview Gafisa: the Company Gafisa Segment Alphaville Tenda Wrap–up and Q&A Period 7
  • Brazil has a housing deficit of 7.2 million homes HOUSING DEFICIT PER REGION IN 2007 In Thousands of Homes North 997.2 Northeast 2,459.1 Brazil 446.6 Total Deficit: 7.2 million Homes 550.6 1,223.5 1,235.6 Inadequate 20.9% Housing 17.6% 8.8% 3.6 3.6 Central-West Southeast Cohabitation 360.0 10.3% 2,667.5 123.6 7.9% 1,265.2 1,402.3 Relative 236.4 South Deficit 12.8% 726.0 257.8 468.2 Brazil has a population of 190 million, Source: IBGE, FGV 2007, Ernst & Young 83% urban, 43% below 24 years. 8
  • Increased purchasing power will generate greater demand for new housing New Housing Formation Monthly Income (Million Families) New Families per year (in thousands) 2007 2030 Up to R$ 1,000 31.7 53% 29.1 31% (113) From R$ 1,000 to R$ 2,000 15.5 26% 27.6 29% 526 From R$ 2,000 to R$ 4,000 8.4 14% 21.8 23% 582 From R$ 4,000 to R$ 8,000 3.3 5% 11 12% 334 From R$ 8,000 to R$ 16,000 1.1 2% 4.3 5% 139 From R$ 16,000 to R$ 32,000 0.3 0% 1.3 1% 44 More than R$ 32,000 0 0% 0.3 0% 13 TOTAL 60.3 100% 95.4 100% 1.526 Source: Brazilian Geography and Statistics Institute (IBGE), FGV, Ernst & Young. 9
  • Brazil’s housing industry provides ample opportunity for growth and consolidation • Real estate market highly fragmented, with no dominant player • Biggest markets in Brazil are São Paulo and Rio de Janeiro. Gafisa is one of the largest players, yet its estimated market share is only ~ 5% in São Paulo and ~ 6% in Rio de Janeiro • Untapped potential, especially in markets where the housing deficit is high 1 10
  • Despite strong mortgage market growth recently, Brazil has low mortgage penetration Mortgages to GDP Households (in thousands) 69% 58% New New Homes % Financed Total Households Financed by Over New Households Formed SBPE and FGTS Households 2002 48,035 1,530 83 5% 2003 49,710 1,675 104 6% 2004 51,752 2,042 112 5% 2005 53,114 1,362 101 7% 13% 11% 2006 54,610 1,496 151 10% 2% 2007 56,343 1,733 166 10% US Spain Chile M exico Braz il Source: JP Morgan, 2008 Sources: IBGE, BC. Does not include financing of existing homes. 11
  • Over the last few years, housing credit has increased – with better rates and longer terms Interest Rates vs. Housing Credit Evolution of Financing Terms Dec, 2008 – Interest rate=12.75% Average term in running days – Housing Credit 30% 65,000 60,000 25% 3,000 55,000 2,500 20% 50,000 45,000 2,000 15% 40,000 1,500 10% 35,000 1,000 30,000 5% 25,000 500 0% 20,000 0 Apr-06 Aug-06 Apr-08 Dec-02 Sep-03 Feb-04 Jun-04 Nov-04 Dec-05 Sep-07 Oct-08 May-03 Mar-05 May-07 Jul-05 Jan-07 Jan-08 Jul-08 Jan-09 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Interest Rate (Selic) Real Estate Credit (R$MM) Note: Housing credit available through December Source: Banco Central do Brasil Source: Febraban 12
  • Consumer mortgage financing has grown exponentially Housing Credit Growth (R$ bn) Savings Accounts and FGTS Balances CAGR (2003-2008): 43% Over R$400 billion available (R$ bn) 41.4 425 385 11.3 336 308 25.2 287 210 269 198 6.9 186 16.3 161 173 154 10.4 30.1 7 6 6.9 18.3 215 5.5 187 126 135 150 3.8 3.9 9.3 115 2.2 3 4.9 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 Housing Credit using resources from FGTS Housing Credit using resources from Savings Accounts Saving Accounts Balance FGTS Balance Sources: ABECIP, Banco Central do Brasil, CEF and FGV. 13
  • Recent government measures are expected to stimulate growth • Since September 2008, the Brazilian government has made nearly $400 bn available to Brazilian businesses and consumers through the following vehicles: Value Treasury funds lent to BNDES for onlending 100.0 Reduction of reserve requirements 99.2 Relaxation of bank capital requirements/ reg. changes 81.2 Supply of dollar hedge via dollar-swaps 33.3 Incremental farm lending 19.0 Cash foreign exchange sales to market 14.3 BNDES capital increase from National Treasury 15.0 FX made available thru repurchase auctions 7.4 Auctions of dollars for trade finance 6.0 Permission for small banks to use FGC funds for lending 5.4 Banco do Brasil new lines for small and medium companies 5.0 Income-tax schedule changes 4.9 Banco do Brasil new credit lines to automaker banks 4.0 Reduction of tax on financial operations 2.5 Reduction of industrial production tax on cars 1.0 Total 398.2 Sources: Brazilian Central Bank, Gazeta Mercantil and Goldman Sachs 14
  • Specific measures for homebuilders have already been announced Oct Additional R$10 billion to finance up to 20% of each development, at 2008 rates of TR+10% to TR+11%, within the limits of the 65% of savings balances which must be used for real estate financing. Dec FGTS Oversight Board announced new financing conditions: 2008 • Builders: R$3 billion of FGTS to finance up to 80% of each development at TR+7% per annum for properties up to R$130,000, and TR+9% Mar New Housing Package expected. Goal is to build 500,000 to 1 2009 million new houses by 2010, focusing on the low-income segment. 15
  • Government to announce additional measures to support the sector Government is expected to announce soon a plan to build up to 1 million new houses through 2010; special attention given to low income segment. • I Improved mortgage t d t terms t i to increase attractiveness: tt ti – Lower costs related to insurance and origination – Use of Price Table, abandoning Constant Amortization System – 30-year maturity with loan to values close to 100%. • Creation of Guarantee Fund to allow for a bridge of mortgage payments in case of unemployment • Extend the Housing Financing System (SFH) eligibility requirements to allow unit values to R$500,000 from R$350,000 • Direct use of monthly worker’s compensation fund (FGTS) contribution to pay part of home buyer’s total installment • Subsidies will be provided in inverse proportion to income level 16
  • Agenda Introduction Market and Macroeconomic Overview Gafisa: the Company Gafisa Segment Alphaville Tenda Wrap–up and Q&A Period 17
  • Key competitive advantages Large land National bank to Well- reach & sustain developed strong local future and partnerships growth recognized Professional brands management Reputation with a significant pipeline of talent for financial discipline The strongest 100% focused on platform to sustain the residential leadership in the market in all 18 rapidly growing lower income income segments segments 18
  • Gafisa is present in all income segments Families by Income Level* Gafisa Brands 15,2% High and Mid-High 9.1 million Income Level families 15.1% Above R$4,807 Middle Income Level 31.5 million Between R$1,115 and R$4,807 families 52.3% Low Income Level Up to R$1,115 19.7 million 32.6% families Total: 60.3 million families Source: FGV/CPS, Feb. 2009 * Income percentage in six Brazilian metropolitan areas 19
  • Comprehensive portfolio of products • Gafisa & Tenda’s Offerings: Affordable Entry High-income Mid-high Middle Income Level Nice Terraças Alto Lapa Parque Barueri Tenda Clube Vivaldi Manaus – AM São Paulo – SP Barueri – SP São Paulo - SP Average unit price: R$ Average unit price: R$ Average unit price: Average unit price: R$ 800,000 399,000 R$ 224,000 70,000+ 20
  • Professional management and established organizational structure • Management with extensive experience in the sector • Senior management with knowledge of diverse industries • Reputation for on-time and on-budget execution • Dedicated teams for each business line / market • Standardized procedures with modern management system and tools 21
  • Our Product Lines: Focused Management for Each Market 60% owned by Gafisa 60% owned by Gafisa Mid, Mid High and High Mid High and High Low Affordable Entry Level Vertical Horizontal / Vertical Horizontal (lots) Metropolitan areas Metropolitan Areas and Outside Metropolitan Outskirts Financing: Banks Areas Financing: CEF and Banks Unique Projects Financing: Direct Standardized Projects Unique Projects Unit Prices: > R$200K Unit Prices: R$50K – Unit prices: R$70K – R$200K Sales through own sales R$500K force and brokers Sales in stores through Sales through own sales own sales force - and force and brokers brokers 22
  • National reach and strong local partnerships • The partnership strategy has many benefits: Access to local Local market Local culture government, Access to business Reduce barriers Local operational knowledge knowledge reducing time of opportunities to entry support approvals 23
  • A diversified, high quality landbank, with 53% acquired through swaps • 199 different sites throughout the country Potential Units Potential Units Future Sales Swap Company (100%) (% Gafisa) R$ billion % GAFISA 22,412 19,050 7.68 40 ALPHAVILLE 32,122 16,432 3.03 97 TENDA 70,116 67,578 6.34 20 Total 124,650 103,060 17.05 53 The size of the land bank gives us the ability to develop it selectively, according to market demand 24
  • The Gafisa brand is a household name • Gafisa Is a Top of Mind, leading brand in our largest markets Spontaneous Stimulated recall 1st GAFISA 22% 1st GAFISA 55% 2nd d - 13% 2nd - 32% 3rd - 10% 3rd - 29% • Our campaigns aim to reinforce Gafisa’s key brand attributes (honest, reliable, traditional, innovative and creative). Countdown to 1,000 Institutional Campaign Completed Buildings Safe Purchase Guide 25
  • A reputation for financial discipline • Strong relationship with the most important banks • Sarbanes-Oxley Article 404 compliance as of December 2008 • SAP management information systems • Credit Ratings: – Moody’s: international Ba2 and local A1.br – Fitch: A-(bra) local – Standard & Poors: BrA local 26
  • Tenda is an anchor of the company’s future growth strategy • Tenda is a platform for leadership in the affordable entry level segment: – One of the largest land banks – A business model with regional offices that enable strong local relationships with CEF’s (Caixa) – Unique sales model based on retail stores that provides a range of products within a region – Well trained own sales force focused exclusively on our products • Gafisa owns 60% of Tenda shares and began consolidating 100% of this Company’s results as of October 21, 2008. 27
  • Agenda Introduction Market and Macroeconomic Overview Gafisa: the Company Gafisa Segment Alphaville Tenda Wrap–up and Q&A Period 28
  • Gafisa’s Products • Gafisa’s products are priced at more than R$ 200,000 and targeted to families with monthly income above R$ 4,800 (High and Mid-High Income Levels) Condominiums Residential Buildings Planned Neighborhoods Breakdown of families by income level (millions of families) 2007 2030 R$ 4,000 to R$ 8,000 3.3 11 Within 23 years, R$ 8,000 to R$ 16,000 1.1 4.3 12 million new R$ 16,000 to R$ 32,000 0.3 1.3 families > R$ 32,000 0 0.3 TOTAL 4.7 16.9 Source: Brazilian Source: Brazilia Geographic and Source: Brazilian Geographic and Statistics Institute (“ h d (“IBGE”) and FGV ”) and d 29
  • Gafisa s Strategy Products targeted to Mid, Mid-High National presence and High segments and adapted to Standardized processes regional needs Strength of Gafisa brand Focus on sales 30
  • National Presence • Developments in progress / Gafisa Landbank (Potential Sales Value) La Land Bank by Region 22 / R$1.770MM So ut h 12 / R$380MM Cent er- West 3% No rt h 3% 5% São P a ulo 44% No rt heast 59 / R$5,080MM R io de 03 / R$220MM 23% J a ne iro 16% So ut heast M ina s 4% 66% G e ra is E s pirit o S a nt o 2% 06 / R$230MM Land Bank by Segment • Up to R$ 200 thousand: 5% • R$ 200 to R$ 350 thousand: 28% • R$ 350 to 700 thousand: 50% • R$ 700 to 1,200 thousand: 12% • R$ > 1,200 thousand: 5% 31
  • Geographic Expansion Importance of Local Partnerships • Expertise in local culture and market • Lowers barriers to entry • Business prospecting enhanced • Speeds approval processes Assignments in a typical development GAFISA PARTNER • Due diligence analysis on • Business prospection Number of Cities where Gafisa Launched • Licenses and permits land acquisitions 31 • Product and project • Customized customer development services • Marketing campaign 23 • Sales management • Administrative and financial management 16 9 • Centralization of activities 5 • Cost reduction (offices only in SP and RJ) • Business model easy to replicate 2004 2005 2006 2007 2008 32
  • Sales Force • Gafisa Vendas (Gafisas’s own sales Team): – Operating in SP, RJ and BA – 123 brokers – Dedicated teams for inventory, launches and online sales – Gafisa Sales participation in 2008: Gafisa Vendas SP RJ sells only 35.0% 43.0% Gafisa’s products, resulting in 42% Inventory 45% Inventory Efficient Sale 29% Launches 41% Launches of Inventory • External Sales Force: – Partnerships with Brokerage Companies Sales force of • 7 in SP approximately • 6 in RJ 8,000 brokers • 26 in New Markets 33
  • Standardized Products • Average unit price between R$ 200,000 and R$ 350,000 • Standardized projects for apartments with 2 and 3 bedrooms • Cost optimization • Reduction of construction cycle • Faster approval and launching 34
  • Unique projects • Units price above R$ 350,000 • Customer-driven feasibility studies E l i Exclusive support/follow-up during /f ll d i regarding different income levels the construction works, allowing for customized blueprints and finishings • Projects designed according to features considered important by customers (research) 35
  • Current Scenario Customers visiting sales stand several times Consumer / Buyer Decision-making period has increased from 20 to 70 More Conservative days Customers concerned about reliable delivery: - customer research of real estate companies has increased •Tradition: 54 years history. •Reliability: 961 developments delivered. •Credibility: 10 million m² built. 36
  • New Launches • Assumptions for new launches: – Construction financing secured – Pre-launch period up to 90 days to confirm demand – Launch only if 40% of units are likely to be sold during first month Examples: Chácara Santana Brink Alphaville Barra da Tijuca Launching Date: Launching Date: Launching Date: 11/15/2008 11/30/2008 12/06/2008 Pre-marketing: Pre-marketing: Pre-marketing: 75 days 70 days 20 days 68% 75% 90% Sold in the Sold in the Sold in the 1st month 1st month 1st month 37
  • Case Study Porto Velho Population: 300,000 inhabitants Local economy stimulated due to the construction of 2 hydroelectric power plants PSV: R$100 million Gafisa s Share: 80% Units: 280 in 4 towers Local market research: September ’07 Local partner definition: November ’07 Land Acquisition: April ’08 Launch: September ’08 Sales: 76% 38
  • Agenda Introduction Market and Macroeconomic Overview Gafisa: the Company Gafisa Segment Alphaville Tenda Wrap–up and Q&A Period 39
  • AlphaVille Overview 40
  • Strategic and Geographic Positioning Master Developer National Presence • Residential Lots in Gated Communities coupled with local Commercial Facilities Leadership Position • No national competitor in the segment Track Record • The concept is well established throughout the country, with a visible presence in 38 Alphavilles in 26 different cities and 16 states Brand Recognition • AlphaVille is one of the best known brands in the country and the most desired in the markets where it is established AlphaVille – Brand Recognition Prizes Master Top de Superbrands FIABCI Pop List Imobiliário Marketing 2007 2005 2005 2005 2005 41
  • Project Approval Process Long-term perspective and complex approval process are significant entry barriers to the segment DUE DILIGENCE / PARTNER/ LAND PROJECT MARKETING CONSTRUCTION OCCUPATION STRATEGIC ANALYSIS SWAP CONTRACT APPROVAL & SALES 3 years 2 years PROJECT Analysis of legal and environmental aspects, location, market and ANALYSIS feasibility studies LAND SWAP Contract with land owner CONTRACT APPROVAL Development of master plan to be submitted to local authorities for PROCESS analysis, registration and approval. This process takes an average of three years and deals with federal and local authorities MKT & SALES On average, 80% of the units are sold in the launching week CONSTRUCTION AlphaVille manages the construction, contracting third parties through a centralized procurement. Average development takes 2 years OCCUPATION Customers are invited to begin construction of their houses under specific regulations developed for an organized occupation 42
  • Recent Growth Steady launch growth at a CAGR of 46% since 2006 Launches (R$ Millions) Sales (R$ Millions) 32% 312 26% 300 11 237 238 114% 70% 6 140 111 3 2006 2007 2008 2006 2007 2008 43
  • Sales Velocity Q4/08 (R$ Millions) December´ s Launches Barra-RJ Mossoró-RN Nova Esplanada-SP Launching dat e Dec. 13t h Dec. 5t h Dec. 17t h Launched PSV 59,6 12,1 29,4 So ld PSV 53,6 12,0 21,0 Sales / PSV - unt il December 31st 90% 99% 71% Launched Unit s 249 119 472 Average Tick et (R$) 713.721 101.454 207.931 Average R$/ m² 1.002 260 300 The average sales of these 3 launches reached 86% above the PSV, in spite of adverse market conditions. Note: Total PSV amounts to R$172 million, part belonging to Alphaville and part to Gafisa Segment 44
  • Land Bank reaches R$3 billion Targeting cities that have unique commercial potential PSV potential (R$ millions) Total Dec 08 January 1st 2008 2,929 Areas VGV Launches 2008 PSV (313) São Paulo State 978 Additions 2008 314 Brasília 668 Revision/Change in PSV 102 Porto Alegre - (2 projects) 207 Land Bank position in december 2008 3,032 Florianópolis - (2 projects) 177 Land Bank AUSA sustains 9.7* years * Based on 2008 launching figures Among Other 18 areas 1.001 Prospective Pipe Line of 4.4 billion Total 3.032 Land Bank of almost 10 years based on 2008 launch level; 98% of them based in land swaps 45
  • Project Design A typical Alphaville project LEISURE RESIDENTIAL AREAS AREAS RESIDENTIAL AREAS Highly sustainable business model Land swaps: no cash outlay ALPHAVILLE COMMERCIAL CLUB COMMERCIAL AREAS AREAS RESIDENTIAL Infrastructure development after the launch GOLF AREAS BUILDING AREAS COURSE Outstanding Sales Velocity AlphaVille Graciosa (Curitiba, Paraná) Use of Alphaville Foundation to help the social integration of neighborhood 46
  • Case Study AlphaVille Jacuhy – Vitória - ES CONTRACT DATE: 2002 LAUNCH DATE: December 2007 LOCATION: Vitória - ES PSV R$: 102.9 Million PRICE R$/m²: 275 (launch price) UNITS: 775 SALEABLE AREA: 475,000 m² SALES SPEED: 90% upon launch SALES MIX: 40% Short Term 47
  • Case Study Jacuhy – Vitória - ES Construction started on Jan/08 48
  • Case Study Jacuhy – Vitória - ES R$ Millions 90% sold on launching week Receivables securitization after completion Minimum Cash Exposure Construction – 24 months 49
  • Agenda Introduction Market and Macroeconomic Overview Gafisa: the Company Gafisa Segment Alphaville Tenda Wrap–up and Q&A Period 50
  • FY2008 and 4Q08: Financial & Operating Highlights *Excluding non-recurring items Net Revenues (R$ million) Gross Profit (R$ million) $ 544* 44* 4* 31.3% 45% 56% 1,740 336 1,204 526 27.9% 30.2% 2007 2008 2007 2008 Net Revenues Gross Profit 261* 15% EBITDA (R$ million) Net Income (R$ million) 40 171* 9.9% 61% * 221 61 20% 110 137 92 11.4% 12.7% 7.6% 6.3% 2007 2008 2007 2008 EBITDA Adjusted Net Income 51
  • Gafisa’s Solid Financial Position • R$606 million cash in addition to R$300 million in securitizable receivables. • R$3.4 billion in construction finance lines of credit provided by all of the major banks: – R$1,699 million signed contracts – R$751 million contracts in process – R$951 million additional availability • 73% of our debt is long term 4Q08 3Q08 4Q07 Total Debt 1,552 1,377 695 Cash and Cash Equivalents 606 790 517 Obligation to Investors 300 300 0 Net Debt & Obligation to Investors 1,246 887 178 Shareholder’s Equity 1,612 1,689 1,485 Total Capitalization 3,164 3,066 2,180 Net Debt & Obligation to Investors / Equity 77.3% 52.5% 12.0% 52
  • 20 40 60 80 0 100 200 300 400 500 600 0 Gafisa Feb-06 Cyrela Mar-06 Apr-06 Rossi Jun-06 MRV Jul-06 Aug-06 PDG Sep-06 Agra Oct-06 Tenda Nov-06 Dec-06 Inpar Sector Feb-07 Tecnisa Mar-07 Apr-07 Lopes May-07 CCDI Jun-07 Volume (R$ MM) Abyara Jul-07 Aug-07 Klabin Oct-07 Even Nov-07 Dec-07 Brascan Avg. daily volume from Feb 01 of 2008 - Feb 28 of 2009 (R$ MM) Price Jan-08 Invest Tur Feb-08 Rodobens Mar-08 May-08 EZ Tec Jun-08 Trisul Jul-08 Aug-08 Highest Trading Volume in Real Estate São Carlos Sep-08 JHSF Oct-08 Market Cap (R$ MM ) NYSE Listing: Gafisa is the only Brazilian real estate company listed in the United States. CR2 Nov-08 Jan-09 0 750 0 10 20 30 40 1,500 2,250 3,000 53
  • Agenda Introduction Market and Macroeconomic Overview Gafisa: the Company Gafisa Segment Alphaville Tenda Wrap–up and Q&A Period 54
  • Key competitive advantages • A presence in all income segments • Professional management and a pipeline of talent • National reach & strong local relationships • Large land bank to sustain future growth • Well-developed and recognized brands • Reputation for financial discipline • The strongest platform to sustain leadership in the rapidly growing lower income market segments 55
  • Strategy • Continue diversification (Product & Geography) • Maintain financial discipline and ‘preferred borrower’ status Superior Revenue Growth • Benefit from expertise, positioning and key relationships in the fast-growing affordable housing segment • Leverage reputation for quality and brand strength in new and existing markets High ROE & Capital • Maximize sales of broad product portfolio through complimentary sales channels Appreciation • Focus on high-return opportunities • Maintain land bank of 2-3 years 56
  • Navigating the current market environment • Ongoing Measures: – Fortified product and geographic portfolio with acquisition of Tenda – Implemented conservative approach to launch strategy – Renewed focus on cash flow and returns – Strengthening of financial relationships – Launched consumer educational campaign “Safe Purchases” Poised to respond quickly to new potential financing opportunities aimed at spurring continued growth in the sector 57
  • Outlook – Given the current economic situation and the continued disruption in the credit markets, visibility on overall growth in the industry is limited. – Despite these factors, we are optimistic that government actions including the additional R$3 billion in FGTS funds designated for financing within the construction industry, the stimulus program aimed at building one million houses by 2010, and the lowering of the Selic interest rate by the Central Bank will result in the increased availability of funds to support the growth of homebuilding. – However, without all of the elements currently in place, we are not providing guidance in the short term. – In 2009, we will continue to be very selective with our launches, conserve cash and increase our sales efforts towards our inventory. 58
  • Gafisa Day Presentation www.gafisa.com.br 59