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    4Q09 Presentation 4Q09 Presentation Presentation Transcript

    • 4Q09 and 2009 Results Conference Call Tenda: Cotia Fase 4 – SP Alphaville Porto Alegre - RS Investor Relations Contact Luiz Mauricio de Garcia Paula ri@gafisa.com.br 1
    • 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. 2
    • Overview of 4Q09 and 2009 Results Financial and Operational Performance – Wilson Amaral, CEO 3
    • Highlights Strong Top Line Growth, Operating Margin Improvement and Comfortable Liquidity Operating and Financial Highlights (R$ million) 4Q09 4Q08 Var. (%) 2009 2008 Var. (%) Launches 1,000,353 644,969 55% 2,301,224 4,195,698 -63% Launches, units - '000 4,258 1,469 190% 10,795 30,016 -73% Contracted sales 1,053,810 588,370 79% 3,248,065 2,577,762 26% Contracted sales, units - '000 6,413 3,760 71% 22,012 17,114 29% Net revenues 897,540 561,738 60% 3,022,346 1,740,404 74% Gross profit 277,418 147,644 88% 878,584 526,003 67% Adjusted Gross margin (w/o capitalized interest) 34.7% 30.6% 410 bps 32.2% 33.3% -109 bps (1) Adjusted EBITDA 174,722 82,272 112% 604,476 300,472 101% (1) Adjusted EBITDA margin 19.5% 14.6% 490 bps 20.0% 17.3% 274 bps (2) Adjusted EBITDA 167,825 41,264 307% 529,930 259,463 104% Adjusted EBITDA margin (2) 18.7% 7.3% 1140 bps 17.5% 14.9% 260 bps (3) Adjusted Net profit 86,074 43,624 97% 312,825 192,792 62% Adjusted Net margin (3) 9.6% 7.8% 180 bps 10.4% 11.1% -73 bps Net profit 55,321 12,844 331% 213,540 109,921 94% EPS (R$/share) 0.3317 0.0988 236% 1.2804 0.8458 51% Net debt and Investor obligations 1,998,079 1,246,619 60% 1,998,079 1,246,619 60% Cash and availabilities 1,424,053 605,502 135% 1,424,053 605,502 135% (Net debt + Obligations) / (Equity + Minorities) 83.8% 59.8% 2400 bps 83.8% 59.8% 1 bps (1) Adjusted for expenses w ith stock options plans (non-cash) (2) Adjusted for Tenda's goodw ill and net of provisions (3) Adjusted for expenses w ith stock options plans (non-cash), minority shareholders and non recurring expenses 4
    • Recent Developments Acquisition of remaining 40% of TENDA’s shares approved: Gafisa now operate Tenda as a wholly- owned subsidiary, benefiting from full integration of back offices and enterprise systems. Approval of R$ 600 million in debentures with Caixa Econômica Federal in December 2009 Strong Sales in Middle and Mid-High Segments: Gafisa and Alphaville brands sold over R$ 670 million during the quarter, logging sales velocities of 23% and 44% respectively. Diversified Geographies and Products: At the end of 2006 Gafisa-brand had a presence in 10 states and 16 cities with a total of 70 developments. Today well-known brands Gafisa, Alphaville and Tenda are present in 21 states, 100 cities with more than 188 developments, being 310 when accounting all the phases. Follow-on Share Offering: Today we are announcing that Gafisa intends to proceed with a follow-on equity offering worth an estimated R$ 1 billion. 5
    • Efficiency Gains under “Minha Casa, Minha Vida” Program Tenda contracted 5,114 units in 2009 and has over 25 thousand units under Caixa’s analysis Caixa’s efficiency has been improving since the beginning of the program, indicating that could reach its goal of 1 million units by the end of 2010. R$ 24 billion 2010 FGTS budget is already 25% higher than the amount granted in 2009. Monthly Evolution of Contracted Units 91 '000 units Status – December 09 Units Units Received 713,990 Units Contracted (Approved) 275,528 55 Units Analyzed - will approve 38,945 Document pending for analysis 63,998 42 Engineering analysis concluded 138,315 Pending engineering analysis 197,204 22 23 12 15 10 5 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Source: CEF 6
    • Concluded Projects Gafisa completed 152 developments or phases during 2009, representing R$ 1.4 billion of PSV. Gafisa: 17 projects/phases, R$ 694 million Alphaville: 5 projects/phases, R$ 204 million Tenda: Valle Verde Cotia, SP Tenda: 130 projects/phases, R$ 496 million Gafisa: Felicità, SP Gafisa: Colina de São Francisco, SP Alphaville 7
    • Diversified, High-Quality Land Bank Provides Strong Platform for Growth 383 different projects or phases in 21 states PSV - R$ million %Swap %Swap %Swap Potential units (%Gafisa) Total Units Financial (%Gafisa) Gafisa ≤ R$500K 4,149 47.2% 39.0% 8.3% 4,490 / ‘000 units > R$500K 3,427 38.0% 36.0% 2.1% 14,235 Total 7,576 42.1% 37.3% 4.8% 18,725 Alphaville ≤ R$100K; 404 94.2% 0.0% 94.2% 5,340 > R$100K; ≤ R$500K 3,458 99.7% 0.0% 99.7% 18,705 > R$130K 100 0.0% 0.0% 0.0% 50 Total 3,962 98.5% 0.0% 98.5% 24,094 Tenda ≤ R$130K 3,822 24.3% 24.3% 0.0% 44,876 > R$130K 463 5.7% 5.7% 0.0% 2,826 Total 4,285 19.4% 19.4% 0.0% 47,703 Consolidated 15,823 50.7% 23.6% 27.1% 90,522  50.7% acquired by swap agreements.  Affordable entry-level segment represents 52% of potential units in land bank. 8
    • Strong Launches and Sales Performance 4Q09 Launches by unit price 4Q09 Pre-sales by unit price (%Gafisa) - R$ k 4Q09 2009 (%Gafisa) - R$ k 4Q09 2009 Gafisa ≤ R$500 k 328,283 612,866 Gafisa ≤ R$500 k 185,480 610,494 > R$500 k 249,301 651,654 > R$500 k 281,099 899,581 Total 577,584 1,264,520 Total 466,579 1,510,075 Units 1,472 3,413 Units 1,210 4,190 Alphaville ≤ R$100K; 24,030 24,030 Alphaville ≤ R$100K; 7,710 25,697 > R$100K; ≤ R$500K 262,000 395,482 > R$100K; ≤ R$500K 194,169 331,915 > R$500K --- --- > R$500K 2,456 19,272 Total 286,030 419,512 Total 204,336 376,885 Units 1,451 2,096 Units 969 1,952 Tenda 1) ≤ R$130 k 102,507 288,013 Tenda 1) ≤ R$130 k 311,403 1,165,171 > R$130 k 34,232 329,179 > R$130 k 71,491 195,934 Total 136,739 617,191 Total 382,895 1,361,105 Units 1,335 5,286 Units 4,234 15,871 Consolidated Total 1,000,353 2,301,224 Consolidated Total 1,053,810 3,248,065 Units 4,258 10,795 Units 6,413 22,012 1) 1) Includes Tenda and Fit Residencial in 2008 Includes Tenda and Fit Residencial in 2008 Other Other 38% São Paulo 36% 47% São Paulo 56% Rio de Janeiro Rio de 7% Janeiro 9 17%
    • Inventories and Sales Velocity - 4Q09 The Highest Sales Velocity of 2009 Contributes to Substantial Inventory Reduction 4Q09 Inventory Inventories beginning *Inventory Release Inventories end R$ million Launches Sales Sales velocity of period + Other of period Gafisa 1,358.1 577.6 466.6 101.3 1,570.4 22.9% AlphaVille 180.9 286.0 204.3 0.9 263.5 43.7% Tenda 1,275.9 136.7 382.9 (233.1) 796.6 32.5% Total 2,814.9 1,000.4 1,053.8 (130.9) 2,630.5 28.6% Inventory reduction (R$ million) 3.394 2,929 2,679 2,815 2,631 -233 1.402 1.149 934 1.276 797 215 199 203 264 181 1.777 1.581 1.542 1.570 1.358 4Q08 1Q09 2Q09 3Q09 4Q09 Gafisa Alphaville Tenda * Tenda’s units reintroduced/blocked 10
    • Overview of 4Q09 and 2009 Results Financial Performance – Duilio Calciolari, CFO and IR Officer 11
    • Strong Pre-Sales Positively Impact Backlog of Revenues to be Recognized (R$000) 4Q09 4Q08 3Q09 4Q09 x 4Q08 4Q09 x 3Q09 Gafisa Revenues to be recognized 1,662 1,870 1,661 -11.1% 0.1% Costs to be recognized (1,044) (1,220) (1,051) -14.4% -0.7% Results to be recognized (REF) 618 650 609 -4.9% 1.4% REF margin 37.2% 34.8% 36.7% 2423 bps 48 bps Tenda 1) Revenues to be recognized 1,363 1,018 1,245 33.9% 9.5% Costs to be recognized (915) (653) (839) 40.2% 9.1% Results to be recognized (REF) 448 365 406 22.8% 10.3% REF margin 32.9% 35.8% 32.6% -298 bps 24 bps Consolidated Revenues to be recognized 3,025 2,888 2,905 4.8% 4.1% Costs to be recognized (1,959) (1,873) (1,890) 4.6% 3.7% Results to be recognized (REF) 1,066 1,015 1,015 5.0% 5.0% REF margin 35.2% 35.1% 35.0% 10 bps 28 bps Note: Revenues to be recognized are net from PIS/Cofins (3.65%). Backlog of Revenues not adjusted to present value. 1) Includes Fit Residencial and Bairro Novo in 2008 12
    • SG&A Improvement over 2008 – Better SG&A Ratios Over Top Line Expected After Tenda’s Integration into Gafisa Company 4Q09 4Q08 2009 2008 Consolidated Selling expenses 73,277 66,897 226,621 154,401 G&A expenses 60,298 75,787 233,129 180,838 SG&A 133,575 142,684 459,750 335,239 Selling expenses / Sales 7.0% 11.4% 7.0% 6.0% G&A expenses / Sales 5.7% 12.9% 7.2% 7.0% SG&A / Sales 12.7% 24.3% 14.2% 13.0% Selling expenses / Net revenues 8.2% 11.9% 7.5% 8.9% G&A expenses / Net revenues 6.7% 13.5% 7.7% 10.4% SG&A / Net revenues 14.9% 25.4% 15.2% 19.3%  Integrating Tenda into Gafisa should start yield the benefits in the coming quarters mainly due to better dilution of costs due to higher volumes of launches and sales.  Synergies to be achieved through shared back office functions, the leveraging of office infrastructure, and the accelerated implementation of systems such as SAP across Tenda’s operations, all resulting in better SG&A/Top Lines ratios in the coming quarters. 13
    • Strong Cash Position: R$1.4 billion Net Debt/Equity (Excluding Project Finance): 13.3% Debt Maturity 74% Long-Term Debt Short Term R$ million 4Q09 3Q09 26% Total Debt 3,122 2,532 Total Cash 1,424 1,100 Obligation to Investors 300 300 Net Debt & Obligation to Investors 1,998 1,732 (Net Debt & Obligation to Investors) / (Equity + Minorities) 83.8% 74.1% Long Term 74% (Net Debt & Obl.) / (Eq. + Min.) – Exc. Project Finance (SFH + 13.3% 27.3% FGTS Debenture) Cash-burn rate 348(1) 246 Until Until Until Until After Company (R$000) Total December/2010 December/2011 December/2012 December/2013 December/2013 Debentures - FGTS (project finance) 602,648 2,648 0 0 300,000 300,000 Debentures - Working Capital 704,473 108,473 346,000 125,000 125,000 0 Project financing (SFH) 406,643 225,453 152,894 23,536 4,760 0 Working capital 686,082 397,418 221,626 36,078 30,960 0 Total debt - Gafisa 2,399,846 733,992 720,520 184,614 460,720 300,000 Debentures - FGTS (project finance) 611,256 11,256 0 150,000 300,000 150,000 Project finance (SFH) 60,376 44,533 15,843 0 0 0 Working capital 50,654 10,908 23,220 12,240 4,286 0 1) Total debt - Tenda 722,286 66,697 39,063 162,240 304,286 150,000 Total consolidated debt 3,122,132 800,689 759,583 346,854 765,006 450,000 % Total 26% 24% 11% 25% 14% (1) R$ 266 Net Debt change + R$ 82 million of treasury shares sold in the 4Q09. 14
    • Follow-on Share Offering – Full Primary Today we are announcing that Gafisa intends to proceed with a follow-on primary equity offering worth an estimated R$ 1 billion; A follow-on offering will afford us the opportunity to comfortably fund our business objectives over the next few years while enhancing our current capital structure; Intended Use of Proceeds: Use of Proceeds % Land Acquisition 35 Working Capital 25 Launches 20 M&A 20 TOTAL 100 15
    • 2010 Outlook Gafisa expects to launch projects totaling R$ 4 billion to R$ 5 billion during 2010, of which 40-45% will be dedicated to the affordable entry-level segment through Tenda. We expect full year 2010 EBITDA margin to reach between 18.5%- 20.5%. 16
    • Gafisa: The Most Liquid Brazilian Real Estate Company and the Only One Listed on NYSE Volume Diário (R$ MM) ADTV1 (R$ MM) Preço (GFSA3) (R$/share) Price GFSA3 210 40 180 35 30 150 25 120 20 90 15 60 10 30 5 0 0 Gafisa’s average daily trading volume: R$105.4 million (Nov 1st, 2009 – Jan 29th, 2010) Average Daily Turnover in the last 90 days over free float: 3.2% (1)ADTV = Average Daily Trade Volume 17