Real estate day eng

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Real estate day eng

  1. 1. Corporate PresentationMarcelo Willer (CEO)Camillo Baggiani (CFO)
  2. 2. Safe-Harbor StatementWe make forward-looking statements that are subject to risks and uncertainties.These statements are based on the beliefs and assumptions of our management, andon information currently available to us. Forward-looking statements includestatements regarding our intent, belief or current expectations or that of ourdirectors or executive officers.Forward-looking statements also include information concerning our possible orassumed future results of operations, as well as statements preceded by, followedby, or that include the words believes, may, will, continues, expects,‘anticipates,‘ intends, plans, estimates or similar expressions. Forward-lookingstatements are not guarantees of performance. They involve risks, uncertainties andassumptions because they relate to future events and therefore depend oncircumstances that may or may not occur. Our future results and shareholder valuesmay differ materially from those expressed in or suggested by these forward-lookingstatements. Many of the factors that will determine these results and values arebeyond our ability to control or predict.
  3. 3. Table of ContentsTopics1 Introduction and Product Description 22 Brand Equity and Sales Process 143 Business Model and Financial Highlights 184 Q&A 26
  4. 4. 1. Introduction and Product Description
  5. 5. Time in Industry: 26 yearsAlphaville: 12 yearsOrganizational Structure5Executive OfficerAlphavilleMarcelo WillerCommercial DirectorandNew BusinessHuman ResourcesFoundation / EnvironmentBusiness DevelopmentOperationsDirectorFinancial andAdministrativeCamillo BaggianiProductDirectorBusinessDirectorShared Services(Gafisa)Time in Industry: 20 yearsAlphaville: 7 yearsTime in Industry: 9 yearsAlphaville: 7 yearsAlphaville currently has 450 employees and 158 sites under construction1. Introduction and Product Description
  6. 6. IntroductionAlphaville Timeline619732002/200519981976 200119952006/20072008/20101997 20002011/2012Acquisitionof 1st landparcel inthe Barueriregion(Campinas) 1st resident moves toAlphaville and launchof the 2nd phase of theresidentialdevelopmentLaunch ofAlphavilleGoiâniaLauch of AlphavilleLagoa dos Ingleses(Belo Horizonte)Acquisition of 60%stake by Gafisa.9 developmentslaunchedLaunch of the 1stAlphavilledevelopmentoutside of theBarueri region(Campinas)Emphasis ongeographicdiversification,with the launch of15 projectsFoundation ofAlphavilleUrbanismo S.A.Launch of AlphavilleGraciosa (Curitiba)Acquisition ofadditional 20% byGafisa.Accelerated growthphase, with emphasison increasing volumeand margins. Launchof 34 projectsCreation of theAlphavilleFoundationLaunch of secondventure, an urbandevelopment inBrasiliaConstrutora AlbuquerqueTakaokaAlphaville Urbanismo S.A.(Under management of founding partners)Alphaville Urbanismo S.A.( Under Gafisamanagement)Rebranding ofAlphavilleDevelopmentlaunched in Portugal1. Introduction and Product Description
  7. 7. 7Products in thedevelopment phaseNúcleosUrbyearsPlannedCommunitiesOpenCommunitiesBusiness Portfolio1. Introduction and Product Description
  8. 8.  Gated communities, targeted at higher incomecustomers (classes A) Minimum lot size 400m² Large living spaces and green areas Complete security system Enclosed convenience services Benchmark for horizontal housing projectsAlphaville Flamboyant - GO1. Introduction and Product Description
  9. 9.  Gated communities, targeted at higher income customers (classes A) Average lot size 250 - 360 m² Leading urban design optimized and shorter road system Club and leisure facilities with option to extend Simplified landscaping Security infrastructure including camera access in the lobby and on thewalls for deployment by residents Self-managed association with reduced oversightImagem 3D – Terras Alphaville Foz do Iguaçu1. Introduction and Product Description
  10. 10. 10 Planned areas, self-sufficient and sustainable Total area exceeds 5 million m² Infrastructure complete with shops, business centers, schools, residential and multifamily developments Strong management and product mix designed to maximize the standard of living Policies incentivizing fiscal investment and the acceleration of occupationMaster plan – Núcleo Urbano Brasília close to DFNúcleos Urbyears1. Introduction and Product Description
  11. 11. 11Barueri 1974 Barueri 2008Designing New Urban Communities1. Introduction and Product Description
  12. 12. 12Alphaville Brasília 2008Alphaville Brasília 2040Vision of the Future1. Introduction and Product Description
  13. 13. 13National Presence63million m² inprojectsexecuted and underconstruction 57 developments executed (45 MN m²) 27 projects under construction (17 MN m²) 98 residential phases and 54 commercial phases 21 states and 53 cities186million m²in projects yet to bedeveloped1. Introduction and Product Description
  14. 14. Leader in Brazilian urban development for 40 years Strong brand recognition with reputation for quality Experience in the complex process of approving subdivisions since 1973National Presence and consistent growth history Presence in 57 cities and 21 states Launches CAGR of 37% in the last 4 years. In 2012, launched projects totalled R$ 1.34 billion Leadership position ensures access to the best land– Signed partnerships in place with land owners representing a PSV of more than R$ 13 billion in land bank forfuture developmentsHigh-margin developments due to price premium and expertise in urbanization Gross Margin of 50% (consolidated in 2012)Unique positioning and high demand ensure good sales velocity. Track record of strong assetappreciation, even during the development process. The process of sales and strong brand recognition generates strong interest at the opening of sale High sales velocity, with some projects sold out during the weekend of launchMain Highlights1243141. Introduction and Product Description
  15. 15. Project Analysis, including legal, environmental, market, location and feasibility studies.Business Steps15Land ProspectingDue DiligenceStrategic AnalysisProject DevelopmentApproval andRegistrationMarketing andSalesConstruction andExecutionCustomer Relationship/ Deployment1.5 years 3 years 2 yearsMarketing and salesConstruction with centralized procurement of outsourced contractors.Implementation / Customer to provide construction specifications45Development process and master plan, urban design of occupancy.2163 Referral to the appropriate agencies for review, approval and registration.Final confirmation of economic feasibility, detailed design and technical budgeting.CommercialDirector and NewBusinessCommercialDirector and NewBusinessOperationsDirectorFinancial Directorand ManagementDirector of ProductManagement andBusinessBusinessDirectorComplete mastery of the complex approval process and development1. Introduction and Product Description
  16. 16. 2. Brand Equity and Sales Process
  17. 17. 172.1 Alphaville Brand Equity Alphaville is a TOP OF MIND* brand of upscale condominums, according to industry reports 70 awards for categories including urbanism, environment, marketing, marketing communications andsocial responsibility, and a Prix d’Excellence with Alphaville Flamboyant Honorable mention in the competition to design the Olympic Village of Rio de Janeiro in 2012 (soleBrazilian company among more than 180 competitors) More than 80% of customers are satisfied** with Brand: more than 21,500 customers in the portfolio National presence: in 21 states, with 79 projects and more than 60 million m² urbanized. In the last twoyears, the company launched new projects in strategic regions, such as: Salvador, Minas Gerais and SãoJosé dos Campos. National Partnership network: more than 2,000 real estate brokers connected The only company in the market that has sold a concept for 40 years Unique sales model: focused on creating desirable projects and involving all stakeholders (brokers,consumers, partners, etc) in the project launch of the project.* In 2012, instituto Officina Sophia measure of brand recognition (between March and October).** satisfaction survey -Officina Sophia – 2012*** Source: Alphaville
  18. 18. 18• As a result...2.2 Alphaville Brand Equity• In 2012, we updated the positioning and visual identity of the brand as part of a rebranding compaignBrand awareness increased 124% The Alphaville brand is synonymous with Tradition, Quality, Expertise andSafety.* Between March and October 2012, we conducted three waves of research with the institute Officina Sophia to measure the evolution of attitudestowards the Alphaville brand.
  19. 19. 1900:03:5500:19:504,35012345600:00:0000:07:1200:14:2400:21:3600:28:4800:36:0000:43:12AverageTime2.3 Alphaville Brand Equity• In 2012, Alphaville launched its own internet portal.• New online tools give public wider access to key areas targeted at investors and brokersSince the launch of the new site, we experienced a significantincrease navigation time+17%Since the launch of the new site, the averagenumber of visits has reached 42,500 per month.+406%+15 min e 54 sec140.832183.411196.829212.334Apr to Aug 2012 Sep to Jan 2013Total single accessTotal AccessAlso, we experienced a significant increase in site visits.* Google Analytics+8%+30%Average Apr to Aug/12 Average Sep to Jan/13Pagesperaccess
  20. 20. OESP– May/12Brasil Econômico– July andDecember/12Jornal da Cidade, SE– Oct/12
  21. 21. 21Efeito Alphaville – Minas GeraisJulho 2012
  22. 22. 22Price Point Evolution - AlphavilleAlphaville São José dos Campos  88% sold in the launch phaseAlphaville Minas Gerais  sold out in the launch phaseFonte: Inteligência de Mercado Alphaville, Imobiliárias locaisR$ 328,00m²R$ 584,21m²Lauch priceMarket priceR$ 644,00 m²Current priceJul/2012 As of todayUnits Launched MGR$ 690,00 m²Current priceR$ 597,00m² R$ 620,00m²Lauch priceMarket priceOct/2011 As of todayUnits Launched SJCAlphaville Sergipe  96% sold in the launch phaseMar/2012 As of todayTerras AlphavilleSergipe  97% sold in the launch phaseTotal Units Launched Sergipe*R$ 413,00m²R$ 336,73 m²R$ 383,73 m² R$ 441,00m²R$ 357,00 m²Current priceSep/2012 As of today
  23. 23. 23Price Appreciation Alphaville Salvador – Media ArticleRevista Exame - Junho de 2010
  24. 24. 24Price Appreciation Alphaville Minas Gerais- Media ArticleRevista Exame - fevereiro de 2013
  25. 25. 3. Business Model and Financial Highlights
  26. 26. 26Unique Model to Ensure Long-term Profitability123Partnership model restricts initial exposure to cash spending project, stand and marketing Strong brand equity and Alphaville history enables partnerships in premium areas and in superiorcondition than those obtained by peersConstruction process is mostly mechanized and automated (earthworks, drainage, paving, etc.)enabling on-budget national expansion Consistent execution - delivery within budget and on time in all regions throughout BrazilBrand dominance, unique concept and proprietary sales process ensures the highest salesvelocity in the housing market at prices above the competition Many instances of sales above R$ 100 MN of PSV on the day of launchUnique Asset light model in the housing market, with superior gross margin (above 50%) andlower cash exposure (aprox. 10% of PSV), resulting in ROEs higher than 50% p.a.
  27. 27. 27Cash Flow – Typical Project-10%-5%0%5%10%15%20%25%30%35%-6 -2 2 6 10 14 18 22 26 30 34 38 42 46 50 54 58 62 66 70 74 78 82 86 90 94Cash Flow Alphaville (% total PSV of development¹)Cash exposure = (9% do VGV)Launch phase results in peak cashgenerationConstruction cycle is typically 22 monthsProjects with healthy sales at launchcan generate a payment stream ofcustomers enough to offsetAlphaville’s exposureLow cash exposure results in high return on capital
  28. 28. 28Operational HighlightsSolid growth historyLaunches (R$ MM) Contracted sales (R$ MM)Inventory (R$ MM) Sales speedMédia = 59%237 313 4207419721.3432007 2008 2009 2010 2010 2012238 300 3775998421.1082007 2008 2009 2010 2010 201260% 59% 59% 59% 59% 58%2007 2008 2009 2010 2010 2012196 215 2814195828122007 2008 2009 2010 2010 2012237 313 4207419721.3432007 2008 2009 2010 2010 2012237 313 4207419721.3432007 2008 2009 2010 2010 2012237 313 4207419721.3432007 2008 2009 2010 2010 2012237 313 4207419721.3432007 2008 2009 2010 2010 2012
  29. 29. 29Financial HighlightsGrowth matched by business profitability. Initial equity investment of just R$500 MM in2007Net Revenues (R$ MN) Net Income (R$ MN) Net Margin (%)EBITDA (R$ MN) and EBITDA Margin (%) ROEMédia = 60%200 247 2774456738192007 2008 2009 2010 2010 201247%69%44%64%79%51%2007 2008 2009 2010 2010 201224 45 6712522527812,0%18,1%24,2%28,0%33,5% 34,0%2007 2008 2009 2010 2010 201215 35 40871611977,5%14,2% 14,3%19,5%24,0% 24,0%2007 2008 2009 2010 2010 2012237 313 4207419721.3432007 2008 2009 2010 2010 2012237 313 4207419721.3432007 2008 2009 2010 2010 2012237 313 4207419721.3432007 2008 2009 2010 2010 2012237 313 4207419721.3432007 2008 2009 2010 2010 2012
  30. 30. 30Financial HighlightsTimeline of Receivables (R$ MN, % of total)¹ Net Debt / EquityDuration = 3 yearsNota:1. Net of delinquencyDuration of the portfolio of receivables of 3 years sustains the Company’s funding and cash position172376289221160105764918 6 3 0 0 012%25%20%15%11%7%5%3%1%0% 0% 0% 0% 0%201220132014201520162017201820192020202120222023202420252,0x1,7x0,6x 0,6x0,3x 0,0x2007 2008 2009 2010 2011 2012ND/E9M12
  31. 31. 4. Q&A

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