First Quarter 2008 Results
                              Earnings Release and Supplemental Financial Information

Investor...
Overview of 1Q08 results - Wilson Amaral, CEO

Financial and Operational Performance




                                 ...
Highlights of the Quarter


       Consolidated Launches increased 91% over 1Q07
          Launches increased to R$578 mil...
Recent Developments


      Fit sales reached R$80 million. Fit now has 11 developments in 6
      metropolitan areas.
   ...
Mortgage Lending Expanding Rapidly

Strong growth in mortgage lending still does not meet pent-up demand


  Housing Credi...
Increasing Commercial Mortgage Penetration
Gafisa is benefiting from higher mortgage availability and is working with bank...
Delivering on Growth Strategy: Strong Launches
Launches (R$ million)




     New Markets

     Rio de Janeiro

     São P...
Delivering on Growth Strategy: Strong Pre-sales
Pre-sales (R$ million)




      New Markets

      Rio de Janeiro

      ...
One of the Most Geographically Diverse Homebuilder already
present in 18 states

127 projects under development




     R...
Gafisa has a Diversified, High-Quality Land Bank
144 different sites, all over the country




                           ...
Our Product Lines: Focused Management Teams for Each Market




                         60% owned by Gafisa    100% Gafis...
Our Differentials



                                    Professional
                                    Management
     ...
Overview of 1Q08 results

Financial and Operational Performance – Duilio Calciolari, CFO




                             ...
Interest Capitalization
Targeting the best accounting practices, in 4Q07 we began to capitalize interest cost
from corpora...
1Q08: Operating Highlights
Net Revenues (R$ million)                                     Gross Profit (R$ million)

      ...
Strong Pre-Sales Positively Impact Backlog
R$665 million of results to be recognized (79% growth compared to 1Q07)




   ...
Current Revenues Come From Previous Years’ Sales
88% of the 1Q08 sales come from projects launched after 2007….

         ...
Gafisa’s Operation is Highly Efficient
SG&A over launches and sales begins to be diluted…
                    SG&A expense...
Strong Financial Position
Gafisa is prepared to deliver on its aggressive growth strategy, with only 23% of
net debt to eq...
Our Shares


 600                        Volume (R$ MM)                                      Price (R$)                 40...
Outlook for 2008


     Launch guidance for 2008 of R$3.0 billion
              R$ 2.0 billion from Gafisa’s core business...
“Safe-Harbor” Statement

    We make forward-looking statements that are subject to risks and uncertainties. These stateme...
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1Q08 Presentation

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1Q08 Presentation

  1. 1. First Quarter 2008 Results Earnings Release and Supplemental Financial Information Investor Relations Contact: Villagio Panamby – Salvador (BA) Julia Freitas ir@gafisa.com.br 1
  2. 2. Overview of 1Q08 results - Wilson Amaral, CEO Financial and Operational Performance 2
  3. 3. Highlights of the Quarter Consolidated Launches increased 91% over 1Q07 Launches increased to R$578 million in 1Q08 from R$303 million in 1Q07 Pre-sales increased 97% q-o-q Pre-sales increased to R$503 million in 1Q08 from R$255 million in 1Q07 Net Operating Revenues rose 42% q-o-q Net operating revenues increased to R$319 million in 1Q08 from R$224 million in 1Q07 1Q08 EBITDA reached R$51 million (15.9% EBITDA margin) a 51% increase q-o-q Net Income increased to R$42 million in 1Q08, from the adjusted¹ net income of R$21 million in 1Q07 Launches in 2 new markets: João Pessoa in the state of Paraiba and São Bernardo in the state of São Paulo Upgrade on Fitch corporate rating to A bra (stable outlook) from A- (A minus) bra ¹ Adjusted for follow on expenses 3
  4. 4. Recent Developments Fit sales reached R$80 million. Fit now has 11 developments in 6 metropolitan areas. Successful launch in January of Horto - Villagio Panamby, located in Salvador, Bahia: 98% of units pre-sold. Gafisa Vendas expands to the North East: Gafisa established Gafisa Vendas to shore up the performance of third party sales teams and ensure sales speed and excellence in the region. Bairro Novo Cotia started construction this quarter for phases 1 and 2, launched in December 2007. Conservative Accounting Practices: the Company began capitalizing interest cost from corporate debt. Potential Financing Program: recently, the Company submitted an initial filing with the CVM for a potential R$1 billion debenture program. Currently, we are registering the first tranche, of R$200 million. 4
  5. 5. Mortgage Lending Expanding Rapidly Strong growth in mortgage lending still does not meet pent-up demand Housing Credit (R$ bn) Savings Accounts Outstanding Balance (R$ bn) CAGR (2003-2007): 43% 25,3 • FGTS funds can now be used to finance mortgages of up to R$ 245 +55% thousand • CEF increases mortgages tenors 6,9 to 30 years. 16,3 -1% +57% 243 +51% 10,4 235 7,0 +15% 27% 6,9 98% 6,0 18,4 187 41% 5,5 168 3% 158 3,9 88% 90% 9,3 3,8 143 63% 36% 4,9 5,5 2,2 3,0 2,9 2003 2004 2005 2006 2007 1Q07 1Q08 2003 2004 2005 2006 2007 1Q08 Mortgages using resources from FGTS Mortgages using resources from SBPE Saving Deposits (R$bn) Sources: ABECIP, Central Bank of Brazil, CEF and FGV. 5
  6. 6. Increasing Commercial Mortgage Penetration Gafisa is benefiting from higher mortgage availability and is working with banks to develop innovative mortgage products Pre Sales financed by Gafisa vs financed by Banks 16% 16% 34% 54% 20% 18% 32% 30% 64% 66% 34% 16% 2005 2006 2007 1Q08 Gafisa direct financing longer than 36 months Gafisa direct financing up to delivery of keys Mortgage Loans Reduction in accounts receivables duration, improves Gafisa’s working capital Higher returns Higher asset turnover Improving terms for clients with lower rates and longer payment periods 6
  7. 7. Delivering on Growth Strategy: Strong Launches Launches (R$ million) New Markets Rio de Janeiro São Paulo 578 10% 5% 91% 218 Gafisa AlphaVille 303 108 60 Fit Residencial 151 252 85% 93 1Q07 1Q08 7
  8. 8. Delivering on Growth Strategy: Strong Pre-sales Pre-sales (R$ million) New Markets Rio de Janeiro São Paulo 503 16% 1% 97% 230 11% Gafisa AlphaVille 255 Fit Residencial 52 78 Bairro Novo 73 72% 195 129 1Q07 1Q08 8
  9. 9. One of the Most Geographically Diverse Homebuilder already present in 18 states 127 projects under development Riviera de Ponta Negra – Manaus (AM) *States in which Gafisa or its subsidiaries already launched projects. 9
  10. 10. Gafisa has a Diversified, High-Quality Land Bank 144 different sites, all over the country Future Sales Potential Units Potential Units Swap Company %Gafisa 100% % Gafisa Agreements % (R$ bn) Gafisa 26,466 19,163 6,122 45% AlphaVille 34,612 16,342 2,998 98% Fit Residencial 17,203 13,382 1,401 7% Bairro Novo 19,807 9,904 615 78% Total 98,088 58,791 11,136 81% 10
  11. 11. Our Product Lines: Focused Management Teams for Each Market 60% owned by Gafisa 100% Gafisa 50/50 JV with Mid, Mid High and Own sales force Odebrecht High Mid High and High Affordable Entry Level In São Paulo, Rio de Low Affordable Entry Vertical Horizontal (lots) Vertical Janeiro and Northeast Level Metropolitan areas Outside Metropolitan Metropolitan Areas and Selling Machine Horizontal / Vertical Financing: Banks areas Outskirts Management of Metropolitan areas and Financing: direct Financing: CEF and Channels & CRM Unique Projects Outskirts Banks Management of Unit Prices: > Unique Projects Financing: CEF and Standardized Projects Outsourced & Local SC R$200K Unit prices: R$70K – Banks R$500K Unit Prices: R$80K – Standardized Projects R$200K Unit Prices: < R$100K 11
  12. 12. Our Differentials Professional Management and Established Organization World-class Shareholders Industry Leadership and and the Highest Strong Brand Standards of Recognition Corporate Governance Geographic Diversification Growth Through Supported by Strategic Product Land Bank Diversification 12
  13. 13. Overview of 1Q08 results Financial and Operational Performance – Duilio Calciolari, CFO 13
  14. 14. Interest Capitalization Targeting the best accounting practices, in 4Q07 we began to capitalize interest cost from corporate debt…. 1Q08 1Q07 2Q07 3Q07 4Q07 2007 COGS (2,749) (2,433) (2,600) (3,283) (3,220) (11,535) Financial Expenses 16,626 6,865 7,339 9,264 9,087 32,554 Income Taxes (4,718) (1,507) (1,611) (2,034) (1,995) (7,146) Net Income 9,159 2,925 3,128 3,947 3,872 13,873 Earnings per share (R$) 0.07 0.02 0.02 0.03 0.03 0.11 Properties for Sale (Current Assets) 34,914 21,037 …. now we recognize it on a Percentage of Completion basis on COGS 14
  15. 15. 1Q08: Operating Highlights Net Revenues (R$ million) Gross Profit (R$ million) 33.5% 42% 29.2% 63% 319 224 66 107 1Q07 1Q08 1Q07 1Q08 Net Revenues Gross Profit Gross Margin Adjusted EBITDA¹ (R$ million) Adjusted Net Income¹ (R$ million) 15.9% 13.0% 15.1% 9.2% 51% 103% 34 51 42 21 1Q07 1Q08 1Q07 1Q08 Adjusted EBITDA Adjusted EBITDA Margin Adjusted Net Income Adjusted Net Margin ¹ Adjusted for Follow on expenses 15
  16. 16. Strong Pre-Sales Positively Impact Backlog R$665 million of results to be recognized (79% growth compared to 1Q07) 1Q08 4Q07 1Q07 1Q08 x 1Q07 1Q08 x 4Q07 Sales to be recognized—end of period 1,725.9 1,526.6 985.7 75.1% 13.1% Cost of units sold to be recognized - end of period (1,060.7) (943.2) (613.8) 72.8% 12.5% Backlog of Results to be recognized 665.2 583.4 371.9 78.9% 14.0% Backlog Margin - yet to be recognized 38.5% 38.2% 37.7% 80bps 30bps 16
  17. 17. Current Revenues Come From Previous Years’ Sales 88% of the 1Q08 sales come from projects launched after 2007…. 502 500 400 204 319 300 31 87.8% 255 37.3% 224 88 75 200 64 28.4% 237 87.7% 120 130 109 100 33 70 34 51 26 0 15 0 11 1Q07 Pre-Sales 1Q07 Revenues 1Q08 Pre-Sales 1Q08 Revenues Launched up to 2004 Launched in 2005 Launched in 2006 Launched in 2007 Launched in 2008 … but only 37% of the 1Q08 revenues come from those projects 17
  18. 18. Gafisa’s Operation is Highly Efficient SG&A over launches and sales begins to be diluted… SG&A expenses 1Q08 1Q07 Selling Expenses 24,047 12,006 G&A Expenses 32,150 19,484 SG&A Expenses 56,197 31,490 Selling Expenses / Launches 4.2% 4.0% G&A Expenses / Launches 5.6% 6.4% SG&A / Launches 9.7% 10.4% Selling Expenses / Sales 4.8% 4.7% G&A Expenses / Sales 6.4% 7.7% SG&A / Sales 11.2% 12.4% Selling Expenses / Revenues 7.5% 5.4% G&A Expenses / Revenues 10.1% 8.7% SG&A / Revenues 17.6% 14.0% Deferred selling expenses1 1Q08 1Q07 Deferred Selling Expenses (R$ 000) 44,633 18,972 Deferred Selling Expenses / LTM Launches 1.8% 1.7% Deferred Selling Expenses / LTM Sales 2.4% 1.7% Deferred Selling Expenses / LTM Revenues 3.5% 2.5% …Gafisa adopts one of the most conservative accounting practices in the industry ¹ Current assets account 18
  19. 19. Strong Financial Position Gafisa is prepared to deliver on its aggressive growth strategy, with only 23% of net debt to equity ratio… 1Q08 1Q07 4Q07 Short Term Debt 85 56 69 Long Term Debt 1,006 299 621 Total Debt 1,091 356 689 Cash and Cash Equivalents 722 621 514 Net Debt (Net Cash) 369 (265) 175 Shareholder’s Equity 1,573 1,424 1,531 Total Capitalization 2,664 1,780 2,220 Net Debt / Equity 23.4% (18.6%) 11.4% … over R$200 million of receivables of completed units which is available for securitization anytime 19
  20. 20. Our Shares 600 Volume (R$ MM) Price (R$) 40 Stock has highest trading volume of 500 35 any company in real estate sector 30 400 25 NYSE Listing: Gafisa is the only Brazilian Homebuilder to 300 20 have an ADR program 200 15 10 100 5 Stock performance 0 0 Since IPO: 97% from R$18.50 to R$36.49 (Apr 30, 2008) May-06 Oct-06 May-07 Oct-07 Feb-06 Jul-06 Dec-06 Mar-07 Aug-07 Jan-08 Mar-08 Since Follow on: 40% from R$26.00 to R$36.49 (Apr 30 2008) Avg. daily equity turnover from Jan - Abr.08 (R$ M M ) M arket Cap (R$ M M ) 120 12.000 100 9.000 80 60 6.000 40 3.000 20 0 - CCDI PDG Gafisa Inpar Invest Tur JHSF MRV Agra Tenda Tecnisa Klabin Brascan São CR2 Rossi Trisul Lopes Rodobens EZ Tec Cyrela Abyara Even Company 20
  21. 21. Outlook for 2008 Launch guidance for 2008 of R$3.0 billion R$ 2.0 billion from Gafisa’s core business R$ 700 million from Fit Residencial and Bairro Novo R$ 300 million from AlphaVille EBITDA margin guidance of 16-17% for 2008 21
  22. 22. “Safe-Harbor” Statement 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. 22

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