ApresentaçãO Institucional InglêS 03 03 2010

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ApresentaçãO Institucional InglêS 03 03 2010

  1. 1. Institutional Presentation March 2010
  2. 2. Disclaimer This presentation does not constitute an offer, or invitation, or solicitation of an offer to subscribe for or purchase any securities neither does this presentation nor anything contained herein form the basis to any contract or commitment whatsoever. The material that follows contains general business information about LPS Brasil – Consultoria de Imóveis S.A (“Lopes”) as of December 31st, 2009. It is not intended to be relied upon as advice to potential investors. The information does not purport to be complete and is in summary form. No reliance should be placed on the accuracy, fairness, or completeness of the information presented herein and no representation or warranty, express or implied, is made concerning the accuracy, fairness, or completeness of the information presented herein. This presentation contains statements that are forward-looking and are only predictions, not guarantees of future performance. Investors are warned that these forward-looking statements are and will be subject to many risks, uncertainties, and factors related to the operations and business environments of Lopes and its subsidiaries such as competitive pressures, the performance of the Brazilian economy and the industry, changes on market conditions, among other factors disclosed in Lopes filed disclosure documents. Such risks may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. Lopes believes that based on information currently available to Lopes management, the expectations and assumptions reflected in the forward-looking statements are reasonable. Lastly, Lopes expressly refuses any duty to update any of the forward-looking statements contained herein. 2
  3. 3. Investment Highlights 3
  4. 4. Investment Highlights Experienced Simple and Focused Management Team Value Added and Outstanding Business Model Track Record Main Distribution Unmatched Channel in the Scale and Reach Industry with a National Footprint Low Risk Business Already scaled with a Diversified down to face new Client Base : Cash market conditions Generator Company 4
  5. 5. Brokerage Market Has No Other Company With The History and Track Record of Lopes  Launch and sell of 14 office buildings at Av. Paulista  Mr. Francisco Lopes  Launch and sell of 11  Introduction of the initiates its activities office buildings at the Faria concept of condominium intermediating Lima region clubs properties  Creation of the launching  First “Top Imobiliário” system with sales stands award, in 1993 – Largest and marketing materials, Brokerage Company attracting customers  First TV 00 s specially during weekends advertisement for a real estate development  Becomes reference in real estate launchings and 90 s presents its new logo 80 s 70 s 60 s 50 s  Lopes becomes an important player at 40 s the segment of gated communities 1935  Identification of Marginal  Triples in size in a decade, Pinheiros as an attractive strengthening its leadership area and launch one of  Start of long term  Wins its 15th consecutive the first buildings in the partnership with “Top Imobiliário” region  The company‟s first Gomes de Almeida  Lopes‟ IPO  Start up of sales of hotel logo Fernandez (Gafisa)  Lopes starts its geographic expansion condominium (Flats)  Launch one of the process  Partner of Grupo Espírito first buildings under  Lopes‟ website become leader on real Santo in selling one of the the condominium state market largest launching in Lisboa: concept  Joint Venture with Itaú Bank in order to Parque dos Príncipes create CrediPronto, our mortgage company. 5
  6. 6. Lopes‟ Operation Pronto operates Habitcasa in the secondary Lopes operates focuses on low market, unique Joint Venture with in mid-high and model of Itaú Bank in high income income, selling franchising and providing segments of the properties up to flagship mortgages primary market R$180 thousand conversion 6
  7. 7. Simple and Focused Business Model… Lopes is exclusively focused on providing value-added real estate brokerage services to its client-developers, with a permanent concern of avoiding conflicts of interest Client-Developers Client-Buyers How do we do business?  Formal relationship through  111,330 effective buyers1 agreements  1,280,935 prospects  Over 300 Clients included in our data base Total Price Revenue Recognition $ 100 per Unit How do we make money?2, 3 $ 2.22 $ 3.00 $ 0.16 $ 10 $ 0.62 Developer $ 5.00 Down- Gross $ 1.15 payment Commission $ 2.00 $ 0.85 Agents + Managers 1 Data from the period between Jan/2001 and Sep/09 2 Figures only for example, not related to financials Net Commission Premium Contract Advisory Fee 3 Considering Sao Paulo market 7
  8. 8. Lopes Net Commission 3.23% 3.15% 3.06% 2.60% 2.54% Net Commission Brazil 2005 2006 2007 2008 2009 SP GVS / Consolidated GVS 100% 95% 80% 50% 48% 3.23% 3.16% 3.19% 3.10% Net Commission São Paulo 2.85% 2005 2006 2007 2008 2009 8
  9. 9. With a Key Role in the Real Estate Value-Chain Lopes‟ business is clearly fundamental to the profitability and returns of its clients… Real Estate Development Brazilian Market Dynamics Working Capital Is Fundamental Speed of Sales Pre Sales Concentrated in the Speed of Sales is Launch Period the Key for Profitability Reliance on Sales Force Scale and Efficiency More than 7,500 brokers …and its scale and reach – nearly impossible to replicate – enhance this importance 9
  10. 10. Value-Added Services Across the Development Cycle Lopes is focused on providing its clients with a full range of consulting services, from land procurement advisory to product formatting, development and sale Formats Coordinates Coordinates Individual Determines Product Develops Optimizes Masters Product Product Sales Strategy the Site‟s Meeting Marketing Media Market Launching Created to Launching Vocation Buyers‟ Campaign Negotiations Research Events Each Product “Wants and Events Needs” 10
  11. 11. Competitive Advantage “Lopes” culture in all business units of different states One single brand, National Integration recognized by the market of Systems Identity that stands Lopes out from the competitors Competitive Advantage: A single, integrated solid Company 11
  12. 12. Institutional Website Evolution of visits to Lopes‟ Website 1.223.952 1.156.919 1.160.838 1.122.373 1.096.452 986.439 861.885 833.105 811.914 839.043 802.087 754.398 749.253 726.605 840.860 695.047 596.412 552.835 639.213 643.288 470.813 284.445 269.274 203.230 121.938 Source: Google Analytics
  13. 13. Sales Expertise in all Market Segments Duo Alto da Lapa Sep/ 08 CASE HIGH Location Alto da Lapa / SP  100% sold.  Developer: Even. Sales 44 un. – R$ 5,600/m² Usable Area 349m² MEDIUM-HIGH Good Life Vila Romana– Sep / 09 CASE Location Lapa / SP  100% sold.  Developer: Yuny. Sales 132 un. – R$ 4,400/m² Usable Area 98 and 136 m2 MEDIUM Città Della Mooca – Jul/ 09 CASE Location Mooca/ SP  100% sold.  Developers Kallas. Sales 80 un. – R$ 3,600/m² Usable Area 80 m2 Atua Mooca II – Feb / 10 CASE ECONOMIC Location Mooca/ SP  100% sold.  Developer: Atua. Sales 232 un. – R$ 2,380/m² Usable Area 34/42/43 / 47 m2 Helbor Offices – Aug/ 09 CASE GATED COMMUNITIES Location Chacara Sto Antonio / SP  100% sold. Sales 140 un. – R$ 5,300/m²  Developer: Helbor. Usable Area 42 / 45 m² Notes: Managerial Reports. Absorption calculated over available units 13
  14. 14. Geographic Expansion 14
  15. 15. Lopes is Growing Nationwide SOUTHEAST REGION São Paulo – Beginning of operations in 1935. Acquisition of 60% of Capucci &Bauer, in October 2007, for R$9 million (7.1x P/E 2008) and an earn-out payment. Rio de Janeiro – Entry by greenfield operation, with beginning of operations in July 2006, with LCI-RJ. CE RN Espírito Santo – Acquisition of 60% of Actual, in July 2007, for R$5.76 million (7.0x P/E 2008) and an earn-out payment. PE Minas Gerais – Entry by greenfield operation with beginning of operations in February 2008. BA SOUTHERN REGION States of Rio Grande do Sul, Santa Catarina and Paraná – Acquisition DF of 75% of Dirani, in May 2007, for R$15.1 million (7.5x P/E 2008) and two GO ear-out payments. In July 2008, Lopes acquired the 25% left by the call/put mechanism. MG ES MIDDLE WEST REGION SP Federal District – Acquisition of 51% of Royal, in November 2007, for RJ R$12 million (9.0x P/E 2008) and an earn-out payment. PR Goiás - Greenfield operation with beginning of operations in August 2008. SC RS NORTHEAST REGION Bahia - Greenfield operation with beginning of operations in October 2007. Pernambuco – Acquisition of 60% of Sérgio Miranda, in August 2007, for R$ 3 million (10.0x P/E 2008) and an earn-out payment. In September 2009, Lopes acquired the 40% left by the call/put mechanism. Lopes tracks developers‟ regional movements, consolidates its Ceará e Rio Grande do Norte – Acquisition of 60% of Immobilis, in position as the largest consulting and sales player January 2008, for R$2.4 million (10.0x P/E 2008) and an earn-out payment. 15
  16. 16. Lopes‟ Market Mix 13% 13% 13% 10% Other* 16% 6% 8% 9% 6% Northeast 6% 9% 7% 12% South 7% 9% 9% 16% 14% Brasília 24% 21% 5% 6% Rio de Janeiro 20% 6% 6% 53% 52% São Paulo 42% 41% 42% 4Q08 1Q09 2Q09 3Q09 4Q09 *Other: Ceará, Estpírito Santo, Minas Gerais, Goiás and the city of Campinas 16
  17. 17. Lopes in the Low Income Segment 17
  18. 18. HABITCASA: Focus on Low Income Segment Focus on Low Income Segment Units up to R$ 180 thousand The Habitcasa brand is applied in all Lopes‟ markets 18
  19. 19. Habitcasa Stands Up as the Biggest Player in sales in the Low Income Segment It sells with 13 public held companies: Agre, Brascan, Camargo Correa, Cyrela, Even, Gafisa, Helbor, Inpar, MRV, Rossi, Tecnisa, Tenda and Trisul Only Real State Sales in the 4Q09 Brokerage Company increased 25% when specialized on the low compared to the 3Q09 income segment, not only in sales, but also in advisory 14,713 units sold Average Price in the 2009 in 2009 of R$124 thousand 70% Sales Speed In the 4Q09 19
  20. 20. Sales by Income Segment 2009 Units Sold Contracted GVS Total units sold = 36,888 Total Contracted GVS = R$9,257 million 6% 16% 12% 24% 40% 22% 38% 42% <150K 150k-350k 350k-600k >600k 20
  21. 21. Increase in the Potential Demand Unit Value Mortgage R$120,000 R$96,000 30% of income 80% of the total value commitment financed In Minimum Wages Monthly Payment (R$) Maturity in years Maturity in years 10 15 20 25 30 10 15 20 25 30 12% 13 11 10 10 9 12% 1,377 1,152 1,057 1,011 987 11% 13 10 9 9 9 11% 1,322 1,091 991 941 914 10% 12 10 9 8 8 10% 1,269 1,032 926 872 842 Interest Tax (%) Interest Tax (%) 9% 12 9 8 8 7 9% 1,216 974 864 806 772 8% 11 9 8 7 7 8% 1,165 917 803 741 704 7% 11 8 7 6 6 7% 1,115 863 744 679 639 6% 10 8 7 6 6 6% 1,066 810 688 619 576 5% 10 7 6 5 5 5% 1,018 759 634 561 515 21
  22. 22. Better Economic Situation of the Low Income Segment… Monthly Income (Millions of Families) 2007 2008 Untill R$1,000 31.7 53% 29.1 31% From R$1,000 to R$2,000 15.5 26% 27.6 29% From R$2,000 to R$4,000 8.4 14% 21.8 23% From R$4,000 to R$8,000 3.3 5% 11 12% From R$8,000 to R$16,000 1.1 2% 4.3 5% From R$16,000 to R$32,000 0.3 0% 1.3 1% More than R$32,000 0 0% 0.3 0% TOTAL 60.3 100% 95.4 100% Source: IBGE, FGV, Ernst & Young “Minha Casa, Minha Vida” Funds % of the population with monthly income between R$1,064 and R$4,561 (program‟s target population) 1 52.0 47.0 7.5 38.0 40.0 36.5 37.4 34 32.5 25.5 Government FGTS BNDES TOTAL 1992 1995 1998 2001 2004 2007 2008 Budget Source: “Minha Casa, Minha Vida” Program Source: FGV 22
  23. 23. ... and also Better Supply of Mortgages New % of new Housing Total of New houses houses houses („000) houses financed formed financed 2002 48,035 1,530 83 5% 2003 49,710 1,675 104 6% 2004 51,752 2,042 112 5% 2005 53,114 1,362 101 7% 2006 56,610 1,496 151 10% 2007 56,343 1,733 166 10% Source: IBGE, BC Housing Credit (R$ billions) 10.2 6.9 7 25.2 5.5 18.4 3.8 3.9 9.3 2.2 3 4.9 2003 2004 2005 2006 2007 Savings untill Oct 2008 FGTS untill Nov 2008 Financed with FGTS' Funds Financed with Savings' Funds Source: ABECIP, Central Bank of Brazil, CEF e FGV 23
  24. 24. Minha Casa Minha Vida Brazilian Government will dispose of R$34 bi. In the State of São Paulo 183,995 units will be built. 41% have a monthly family income São Paulo‟s families 10% has purchase intention for between 3 and 10 minimum wages, the next 12 months with “Minha Casa, Minha Vida” this families will become potential buyers. It is estimated that there is a 140 thousand units demand in the city of (3.4 million of families) (1.4 million of families) São Paulo inside the “Minha Casa, Minha Vida” program . Source: Lopes‟ Market Intelligence Premise: with the federal government subsidy, the decrease of interest rates and more extended mortgages terms, the minimum family income to acquire a R$100 thousand house became 3 minimum wages, not 6 minimum wages as before. 24
  25. 25. Minha Casa Minha Vida Steps Untill 3 minimum wages Between 3 and 10 minimum wages R$10 billions Government Contribution R$16 billion (2.5 bi Government and 7.5 bi FGTS) Subsidy Full Value - Insurance Exception Reduction Reduction Registration Costs Exception (90% form 3 to 5 minimum wages 80% from 5 to 10 minimum wages) Units per Income Units Distribution In the Southeast Region 5% 0 to 3 minimum wages 20% 40% 24% Espírito Santo 3 to 4 minimum wages 10% Minas Gerais 50% 4 to 5 minimum wages Rio de Janeiro 10% 21% São Paulo 5 to 6 minimum wages 20% 6 to 10 minimum wages 25
  26. 26. Sales Speed MRSP Low Income Segment Units Launched and Sold SP Capital Average (Units Sold/Launched) = 1.40 Average (Units Sold/Launched) = 0.80 6,131 5,663 4,011 4,027 3,613 2,116 1,113 382 Jun/08 Jul/08 Aug/08 Sep/08 Oct/08 Nov/08 Dec/08 Jan/09 Feb/09Mar/09 Apr/09 May/09 Jun/09 Jul/09 Aug/09 Sep/09 Oct/09 Nov/09 Dec/09 Units Sold Year Units Launched Units Sold Units Launched 2008 34.500 32.800 2009 30.100 35.800 Source: Secovi –SP and Lopes’ Market Intelligence. 26
  27. 27. Lopes in the Secondary Market 27
  28. 28. Joint Venture Lopes Itaú Lopes and Itaú created the first and biggest pure mortgage company of Brazil.  Direct and exclusive access to its  Service excellence customer database  Competitive financing terms and  Seamlessly integrated operation with conditions Lopes‟ sales process, including an  Speed and quality of processing incentive compensation plan  Experienced credit analysis  Lopes media exposure  Successful exposure to the lending business and in joint ventures Leadership position Management in their respective High Value Brands Excellence markets Strengthening of mortgage origination and other related services. 28
  29. 29. CrediPronto! Innovative Real State Financing Process Assessment of Issuance of the Release of Credit Analysis Legal Analysis the Property Contract Resources Until 3 2 3 5 24 hours working working working working days days days days Efficiency in Release of Credit The deadlines mentioned are linked to the complete delivery of the documentation and they can change in case of any restrictions. 29
  30. 30. CrediPronto! The only real mortgage company of the market and possibly with no conditions of being copied. Focus on the Secondary Market Opportunity to work in the Primary Market with small Developers Competitive Advantages  Efficiency on releasing mortgages;  Agility and perception of a non-financial institution; and  Lower process costs. 30
  31. 31. CrediPronto! CrediPronto!‟s Financing (R$ MM) 72% Accumulated Mortgage Inventory in the end of 2008 and 2009: 61% -Financed Volume: R$204MM 67.3 350,0 -GVS: R$325MM -Contracts: 703 41.9 203.9 -Average Payment Term: 285 months 136,6 94,7 3Q09 4Q09 End of 2008 + Guidance 2009 The amount financed by CrediPronto! was achieved through our Pronto! Stores, that totaled 152 stores 31
  32. 32. Secondary Market: Pronto!‟s Business Model Feasible Leadership Assumptions as a Goal Fast Growth Credentialed Converted Stores Stores Start Up Highly Structured Owned Stores First Mover: only Brazilian one-stop-shop High Volume Pronto! present in 12 Brazilian States, and in the Creation Federal District. It has 152 Stores, 78 of which in the MRSP of São Paulo.
  33. 33. Pronto! 2009 December 152 Stores November 115 Stores October 109 Stores September 93 Stores August 50 Stores July 34 Stores June 23 Stores May 17 Stores April 11 Stores In the State of SP, Pronto has 94 stores, 78 in the March 9 Stores MRSP and 16 in the countryside and coast. February 7 Stores January 6 Stores 33
  34. 34. Pronto! One Stop Shop Concept One Stop Shop Purchasing/Selling your property + Financing 34
  35. 35. Synergies Between Credipronto! and Pronto! – Competitive Advantage Easy Credit Distribution Access Channel (Financing) Pronto! and CrediPronto! acting together create a competitive advantage that is hard to replicate.
  36. 36. Brazilian Real Estate Market 36
  37. 37. Social Economic Scenario and Housing Shortage Age Pyramid in Brazil Segments by Income in Brazil Income A/B 16% > US$ 2,509 more than 70 60 to 64 Men Women 50 to 54 52% Income between C US$ 582 and US$ 2,509 40 to 44 30 to 34 20 to 24 14% Income between D US$ 419 and US$ 582 10 to 14 Income 0 to 4 E 19% < US$ 419 -6% -4% -2% 0% 2% 4% 6% 47 million homes Source: IBGE Source: FGV Quantitative Housing Shortage Qualitative Housing Shortage (millions of homes) 7.3 6.7 1,8x Brazil 5.4 4,0x Mexico 9-10x G-7 Source: Credit Suisse 1991 2000 2007 * Qualitative Housing Shortage is the number of times that a family moves to different houses in life Source: Fundação João Pinheiro e Ministério das Cidades 37
  38. 38. Mortgage Market and the Investment Grade Mortgage Market as a % of GDP AAA 69% AAA 45% AA BBB+ 38% 34% A+ A+ 18% A BBB+ 15% 12% 11% BBB- A- BBB- 4% 4% 2% X Rating S&P Source: Lopes, FMI, S&P and Santander 38
  39. 39. Launches RMSP – Historic data (1996 - 2008) GVS¹ Launched (R$ bn) - RMSP 22.9 21.5 15.1 16.6 15.7 14.2 1996 1997 2006 2007 2008 2009 ¹ Launched values adjusted by the INCC until December/09. Nominal GVS launched in 2008 was the same amount as 2007: R$ 20 bn. Number of Launches - RMSP Units Launched („000) - RMSP +14% 574 548 70 70 538 548 509 68 509 482 467 458 478 56 442 +37% 377 341 40 38 35 35 34 37 36 33 31 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Lopes’ Market Intelligence 39
  40. 40. SPMR Real Estate Market Overview – Prices Evolution of Average Launches‟ Prices in the SPMR R$/m2 R$/m2 3501 3211 3064 2979 2861 2895 2473 2230 Nominal 1930 1741 1546 1619 1357 1370 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 4132 4091 3876 3926 3888 3823 3925 3938 3802 3808 3651 3515 3532 3463 INCC Adjusted 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: EMBRAESP 40
  41. 41. The Secondary Market Difference (in %) between the average price Real estate market by segment per m² in new development vs. used properties (Total in R$ billion, % of total potential sales value) 118 100% Primary 37% 19 13 11 9 63% USA Spain South Africa Mexico Secondary In the city of São Paulo, the difference is as high as 30% ~ 50% Brazil Source: ITBI, Gafisa prospectus, Cushman Wakefield report, team analysis
  42. 42. Factors that Sustain the Growth in the Real State Market Financing Availability Positive Economic Trend Smaller Taxes, longer terms; Brazil is Latin America’s biggest economy SFH and FGTS limit increase; and presents economic, political and social stability; Higher participation of the private Positive economic fundaments: sector; and 1. Country-risk in minimum historical level In Brazil, the mortgages represent 2. Inflation under control 10-20% of the total credit, smaller than in 3. Extern debt at lower levels other countries (70%). 4. Decreasing of the unemployment tax Housing Deficit Real State Sector Development Consumer’s buying intention increase; Estimated deficit of 7.5MM de houses; Technology achieved in both sides; Bad quality housing for middle and low Products with more sophisticated attributes for the middle income income segments. segment; Technology in the low income segment construction; and Development of new Brazilian markets. 42
  43. 43. Lopes‟ Confidence Index 43
  44. 44. Lopes‟ Confidence Index (LCI) - December/09 Lopes is the first company to create a Real Estate Consumer Confidence Index. Lopes‟ Confidence Index (LCI) December/09 153,4 157,8 147.4 145.3 142.8 145,9 137.5 141.3 137,6 Expectation Index 131.6 133.8 134,4 131,7 124.7 125.3 127.0 124.1 Lopes' Confidence Index 116.3 119.0 120.3 115,5 117,5 117,6 118.0 111.2 105.7 109.4 105.3 100.8 100.5 99.3 Present Situation Index 100.0 98.7 87.2 86.8 82.0 jan/09 feb/09 mar/09 apr/09 may/09 jun/09 jul/09 aug/09 sep/09 oct/09 nov/09 dec/09 Lopes‟ Confidence Index intend to measure clients confidence, so Lopes can follow and anticipate, in the short term, housing purchase tendency. The sample has 567 interviews, with Grande São Paulo resident clients, which contacted Lopes in the last 3 months and are interested in purchasing a new home. (base: jan/2009=100) Source: Lopes Market Intelligence 44
  45. 45. Optimist Evaluation Growth Optimist evaluation growth in the items that measure the present situation Evolução da avaliação "boa" nos quesitos que medem a situação atual 40% 40% 35% 35% more optimism 30% 30% Interviewed that considered as “good” 25% 25% the Brazilian present situation 20% Interviewed that considered “good” 20% their family economic situation 15% 15% Interviewed that considered “high” less 10% their house purchase intention optimism 10% 5% Linear (Interviewed that considered as 5% “good” the Brazilian present situation) 0% Linear (Interviewed that considered 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec “good” their family economic Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec situation) (base: jan/2009=100) Source: Lopes Market Intelligence
  46. 46. Operational Highlights 46
  47. 47. Contracted Sales‟ Historical* Total GVS – Primary Market (in R$ million) 9,370 8,658 4,873 2,545 1,853 1,556 1,166 1,253 591 850 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 * Unaudited managerial information. 47
  48. 48. Contracted Sales Contracted Sales (R$ MM) 10,099 6% 9,257 1,339 599 728 8,658 18% 3,061 8,031 3,061 91% 2,601 210 210 1,600 153 91 2,851 2,851 2,448 1,509 4Q08 4Q09 3Q09 4Q09 2008 2009 Primary Market Secondary Market Patrimóvel
  49. 49. Units Sold per Region and per Income Segment 28,483 25,016 Sales per Region (in units) 5,813 2,794 3,486 4,094 3,329 2,573 South Region Southeast Region Middle West Region Northeast Region 2008 2009 16,798 14,755 14,713 15,419 Sales per Segment (in units) 4,880 4,480 2,437 2,276 0-150K 150K-350K 350K-600K >600k 2008 2009 49
  50. 50. Sales Speed over Supply Lopes' Consolidated Sales Speed Habitcasa‟s Sales Speed 60.7% 65.9% 25.9% 29.3% 3Q09 4Q09 3Q09 4Q09 *Management information, The Sales Speed over Supply is obtained based on the quarter’s contracted GVS compared to inventory and launches.
  51. 51. Financial Highlights 51
  52. 52. Net Commission by Market Net Commission 4Q08 3.06% 2.46% 2.60% 1.94% São Paulo Rio de Janeiro Other Markets Brazil 4Q09 2.79% 2.49% 2.49% 2.09% São Paulo Rio de Janeiro Other Markets Brazil 52
  53. 53. Results 2009 2009 Results (R$‟000) LOPES PRONTO! CREDIPRONTO! CONSOLIDATED Net Revenue 216,658 6,777 1,258 224,693 Operating Costs and Expenses (121,383) (8,945) (3,563) (133,891) Stock Option Expenses (CPC 10) (4,172) (4,172) Expenses accrual from Itaú (953) (953) Pro-Forma EBITDA 94,322 (2,167) (2,305) 89,850 Pro-Forma EBITDA Margin 44% -32% -183% 40% Pro-Forma Net income 59,010 (2,864) (664) 55,482 Pro-Forma Net Margin 27% -42% -53% 25% Without Pronto! and Credipronto!‟s Brasília had a R$22.5 million Income, effect, Lopes‟ EBITDA would‟ve been while Campinas had a R$8.8 million R$94 millions, with a 44% margin and Income, what explains the minorities a Net Income of R$59 million, with a Interests of R$18.1 million. 27% margin. 53
  54. 54. Costs of Services Provided and Operating Expenses Operating Costs and Expenses 4Q09 (R$ MM) 4.3 Other R$3.9 MM Itaú’s Expenses Accrual R$0.2 MM 42.5 34.4 Depreciation R$2.3 MM Stock Option (CPC 10) R$1.4 MM 3.9 Other Total Operating Costs Pronto! and Operating Costs and Expenses Credipronto! Costs and Expenses 54
  55. 55. Guidance for 2009 55
  56. 56. Sales‟ Guidance for 2009 (R$ BI) 12.0 – 12.5 32% 9.3 2009 2010 * The General Value of contracted sales (Contracted GVS) projected in this release may change due to many variables. This material fact includes forward looking statements related to business perspectives, results estimates and, also, the growth outlook for Lopes. Such forward looking statements may be substantially affected by changes in market conditions, government decisions, stronger competition, industry performance as well as Brazilian economy performance, in addition to those risks presented in the documents released and filed by Lopes, consequently, they are subject to changes without previous notice. 56
  57. 57. Additional Information 57
  58. 58. Lopes‟ Contracted Sales Seasonality Two seasonality components: • Natural variation in sales related to holidays or vacation periods over the year. The first quarter is more significantly affected by summer vacations and the week of Carnival celebrations. • Variations in sales stemming from the sales pipeline in the real estate development market, in which projects launched are subject to licensing and permit requirements, which account for significant distortions in a quarter-over-quarter comparison. 41% 37% 32% 33% 31% 29% 29% 28% 25% 24% 22% 22% 23% 23% 21% 17% 18% 16% 15% 14% 2005 2006 2007 2008* 2009 1Q 2Q 3Q 4Q Unstable sales behavior in each quarter accounts for variations in yearly sales * The seasonality can not be verified in 2008, because of the effects of the world financial crises. 58
  59. 59. Ownership Structure Ownership Structure Post-IPO* 0% 28% Foreigner Investors - Free Float Nacional Investors - Free Float 6% Controlling 66% Management Total of 49,448,033 common shares * In December 31st 2009. 59
  60. 60. Analysts Coverage Institution Analyst Contact Agora Cristiane Viana (+55 21) 2529-3393 cristiane.viana@agorainvest.com.br Brascan Cristiano Hees (+55 21)3231-3134 chees@brascanctv.com.br (+52 55) 5283-8933 Credit Suisse Marcelo Telles marcelo.telles@credit-suisse.com Itaú David Lawant (+55 11) 3073-3037 david.lawant@itau.com.br Planner Ricardo Martins (+55 11) 2172-2600 rmartins@plannercorretora.com.br (+1 212) 713 1094 UBS Gordon Lee gordon.lee@ubs.com (+55 21) 3262-9208 BTG Pactual Rodrigo Monteiro rodrigo.monteiro@btgpactual.com (+55 11) 3035-4141 Coinvalores Marco Barbosa marco@coinvalores.com.br 60
  61. 61. Contacts INVESTOR RELATIONS CONTACT E mail: ri@lopes.com.br Website: www.lopes.com.br/ri 61

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