Institutional Presentation                             May 2012                                        1
Disclaimer   This presentation does not constitute an offer, or invitation, or solicitation of an offer to subscribe for o...
Investment Highlights                        3
Achievements                                                          Highlights 2011                                     ...
The Brokerage Market Has No Other Company With Our History and Track Record                                               ...
Investment Highlights                       Experienced       Simple and Focused                    Management Team       ...
LPS Brasil: Unique Business Platform              Primary Market                    Secondary Market                    Mo...
Lopes Net Commission            Net Comssion Fee                               2Q10     3Q10    4Q10    1Q11    2Q11    3Q...
Virtuous Cycle of the Business Model Creating Strong Barriers to Entry  Indisputable Sales Performance                    ...
Institutional Website                                    Visits on www.lopes.com.br                                       ...
Competitive Advantage                                                             “Lopes” culture in all                  ...
LPS Brasil’s Market Mix                                                           9%          9%            8%     11%    ...
LPS Brasil in the Primary Market                                   13
Simple and Focused Business Model…Lopes is exclusively focused on providing value-added real estate brokerage services to ...
Value-Added Services Across the Development Cycle Lopes is focused on providing its clients with a full range of consultin...
Lopes is Growing Nationwide                                                                                    SOUTHEAST R...
Sales Expertise in all Market Segments         HIGH                             Roof Gardens Bela Cintra – Oct/ 11        ...
LPS Brasil in the Low Income Segment                                       18
HABITCASA: Focus on Low Income Segment              Focus on Low Income Segment              Units up to R$ 300 thousand  ...
Sales by Income Segment – Primary and Secondary Markets                                               Contracted Sales    ...
LPS Brasil in the Secondary Market                                     21
Pronto!                                                                      SOUTHEAST REGION                             ...
Pronto!: A Natural Consolidator                                                                           Well Defined Acq...
Joint Venture Lopes Itaú          Lopes and Itaú created the first and biggest pure mortgage company of Brazil.          ...
Differentiated Model: One-Stop-Shop Secondary Market: a significant potential for origination                  Distincti...
CrediPronto!                                                             Operational Highlights                           ...
CrediPronto!                                    Mortgages Portfolio                  (R$ MM)                              ...
CrediPronto!                                                                     Accumulated Sales Volume *               ...
Credipronto!: Unique Partnership to Capture Mortgage Loan Market                             Potential    Business Highlig...
Brazilian Real Estate Market                               30
Significant Creation of DemandDemographic Bonus                                                        Population Pyramid ...
Mortgage Market                                            Mortgage Market as a % of GDP    88%              81%          ...
Market Potential for Real Estate FinancingGrowth Drivers                                                                  ...
Sales Speed Metropolitan Region of São Paulo                                        Units Launched and Sold               ...
Real Estate Market Overview – Prices                                                               Evolution of Average La...
Lopes’ Confidence Index                          36
Lopes’ Confidence Index (LCI) – March/12                             Lopes is the first company to create a Real Estate Co...
Operational Highlights                         38
Contracted Sales                   Contracted Sales                                                Units Sold     (R$ MM) ...
Breakdown of Contracted Sales              Breakdown – Contracted Sales 1Q12                                    Primary Ma...
Evolution of Launches – Listed Homebuilders and Lopes                                                                     ...
Breakdown Homebuilders                         Breakdown – Homebuilders                          Breakdown Top 5 Clients  ...
Financial Highlights                       43
1Q12 Financial Highlights                                                                                                 ...
1Q12 Results        Results 1Q12        (R$ thousand)                                                  LAUNCHES       PRON...
CrediPronto!                                                                                                    P&L*      ...
Allowance for Doubtful Accounts Example of P&L with a financing contract for a $200 unit:                                M...
Additional Information                         48
Lopes’ Contracted Sales SeasonalityTwo seasonality components:• Natural variation in sales related to holidays or vacation...
Ownership Structure                        Ownership Structure Post-IPO                                 33%             41...
Contacts           INVESTOR RELATIONS CONTACT                              E mail: ri@lopes.com.br                        ...
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Apresentação institucional inglês 1 t12

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Apresentação institucional inglês 1 t12

  1. 1. Institutional Presentation May 2012 1
  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 (“LPS”) as of March 31st, 2012. 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 LPS 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 LPS 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. LPS believes that based on information currently available to LPS management, the expectations and assumptions reflected in the forward-looking statements are reasonable. Lastly, LPS expressly refuses any duty to update any of the forward-looking statements contained herein. 2
  3. 3. Investment Highlights 3
  4. 4. Achievements Highlights 2011 Awards VII Award Top Imobiliário Award Ranking Valor 1000 IG/ Insper Award Relatório BancárioConsidered the main award Listed by Valor Econômico as Assertive M&A strategy, CrediPronto! was awarded in the of the real estate industry in one of the 1000 largest business expanding the business to segment “Best Online File Brazil; groups in Brazil; other regions of the country; Management” Lopes won every Top Highlighted as the 20th higher Lopes was considered the Highlighted for the efficiencyImobiliário, since its first edition net margin among largest company in real in the mortgage approval in 1993. all groups; estate brokerage and consulting in Brazil, in the  8th place in value generation last five years. among service companies. 4
  5. 5. The Brokerage Market Has No Other Company With Our History and Track Record  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 16th 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.  Lopes’ follow-on 5
  6. 6. 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 6
  7. 7. LPS Brasil: Unique Business Platform Primary Market Secondary Market Mortgage Loan + Low, mid and high-income segments Focus on secondary market, with a Joint Venture with Banco Itaú to unique model of own stores and a provide mortgage loans network of licensed brokers Growth through acquisitions 7
  8. 8. Lopes Net Commission Net Comssion Fee 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 BRAZIL 2,45% 2,63% 2,48% 2,30% 2,36% 2,36% 2,42% 2,31% Primary SP 2,97% 3,25% 3,07% 2,88% 2,95% 2,87% 3,06% 2,78% Habitcasa 1,77% 1,90% 1,87% 1,90% 1,91% 2,12% 2,05% 2,02% RJ 2,17% 2,06% 2,08% 2,17% 2,02% 2,23% 2,12% 2,11% Other Markets 2,14% 2,28% 2,14% 2,13% 2,11% 2,08% 2,06% 2,12% Secondary SP 2,21% 2,16% 2,28% 2,22% 2,34% 2,33% 2,40% 2,24% RJ 2,33% 2,43% 2,52% 2,42% 2,28% 2,33% Other Markets 2,08% 2,36% 2,35% 2,53% 2,33% 8
  9. 9. Virtuous Cycle of the Business Model Creating Strong Barriers to Entry Indisputable Sales Performance Leadership and Wide Range of Products  1Q12 was the best first quarter of  Leader in the primary market LPS history, with R$4.0 billion in sales.  One-stop-shop: unique and  CrediPronto! achieved 322 complete solution for the client million in origination in the quarter  : unique platform to and R$1,3 billion in 2011. develop the secondary market  Most visited website in the real  : partnership with one estate sector: 15 million visitors in of the largest retail banks in the 2011. world, Itaú Unibanco Strong Established Base Retention of Talent  Leading, nationally recognized brand  Present in 12 Brazilian states and in the Federal  Largest sales force: more than 16,000 District independent brokers  Extensive distribution channel  Attracts and maintains its sales force  Database with more than 2 million clients  More than 380 homebuilder clients 9
  10. 10. Institutional Website Visits on www.lopes.com.br • Over 15 million unique visitors in 2011 •700 launches and more than 50 thousand units in the secondary market. • Mobile version compatible with over 5 thousand kinds of cell phones • First brokerage company to launch an App for iPad • Leader in presence in social networks The most visited Increased Strong investment Higher sales website in the real generation of in online media conversion estate market LeadsSource: Google Analytics, 10
  11. 11. Competitive Advantage “Lopes” culture in all business units of different states One single brand, National Integration recognized by the of Systems market Identity that stands Lopes out from the competitors Competitive Advantage: A single, integrated and solid Company 11
  12. 12. LPS Brasil’s Market Mix 9% 9% 8% 11% Other* 12% 14% 12% 12% 13% 10% 12% 10% 10% 12% 11% 12% South 11% 12% 4% 12% 8% 4% Brasília 14% 9% 9% 7% 17% 25% 5% 10% 22% Rio de Janeiro 19% 18% 24% 5% 21% 59% 53% 56% São Paulo 49% 50% 52% 51% 47% 47% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12*Other: Northeast, Estpírito Santo, Minas Gerais, Goiás. 12
  13. 13. LPS Brasil in the Primary Market 13
  14. 14. 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 agreements  2,081,769 prospects  Over 382 Clients included in our data base Total Price Revenue Recognition $ 100 per Unit How do we make money?1 $ 2.04 $ 2.75 $ 0.19 $ 10 $ 0.53 Developer $ 5.13 Down- Gross $ 1.41 payment Commission $ 2.38 $ 0.97 Agents + Managers Net Commission Premium Contract Advisory Fee 1 Launches Lopes 1Q12 14
  15. 15. 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” 15
  16. 16. 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. Acquisition of 51% of Itaplan, in September 2011, for R$29.2 million (R$10.6 million + R$18.6 million earn out). Acquisition of 51% of Eduardo Imóveis, in October 2011, for R$10.2 million (R$3.4 million + R$6.8 million earn out). CE Rio de Janeiro – Entry by greenfield operation, with beginning of operations in RN July 2006, with LCI-RJ. . Lopes acquires permanently an additional 10% stake of Patrimóvel, in July 2010, and more 31% in October 2010 (51% total). PE 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. BA Minas Gerais – Entry by greenfield operation with beginning of operations in February 2008. Acquisition of 51% of Brisa, in September 2011, for R$5.5 million (R$1.9 million + R$3.6 million earn out). DF GO SOUTHERN REGION States of Rio Grande do Sul, Santa Catarina and Paraná – Acquisition of 75% of MG Dirani, in May 2007, for R$15.1 million (7.5x P/E 2008) and two ear-out ES payments. In July 2008, Lopes acquired the 25% left by the call/put mechanism. SP RJ MIDDLE WEST REGION PR Federal District – Acquisition of 51% of Royal, in November 2007, for R$12 million (9.0x P/E 2008) and an earn-out payment. SC Goiás - Greenfield operation with beginning of operations in August 2008. RS NORTHEAST REGION Bahia - Greenfield operation with beginning of operations in October 2007. Pernambuco – Acquisition of 60% of Sérgio Miranda, in August 2007, for R$ 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. In 2010, there was a transfer to LPS Fortaleza –of 100% (one hundred percent) of the capital stock of LPS Lopes tracks developers’ regional movements, consolidates its Pernambuco. position as the largest consulting and sales player Ceará e Rio Grande do Norte – Acquisition of 60% of Immobilis, in January 2008, for R$2.4 million (10.0x P/E 2008) and an earn-out payment.Source: Lopes RI 16
  17. 17. Sales Expertise in all Market Segments HIGH Roof Gardens Bela Cintra – Oct/ 11 CASE Location Consolação/ SP  97% sold.  Developer: Fakiani Sales 118 un. – R$ 11,600/m² Usable Area 34/190 m2 Helbor Boulevard Tatuapé – Mar/12 CASE MEDIUM-HIGH Location Tatuapé/ SP  99% sold.  Developer: Helbor Sales 72 un. – R$6,400/m² Usable Area 100 m² MEDIUM Naturalle – Feb/12 CASE Location Rio de Janeiro/ RJ  98% sold.  Developer: Brookfield Sales 216 un. – R$ 4,700/m² Usable Area 42/ 66 m² Premiere Morumbi – Feb/12 CASE ECONOMIC Location Paulínia / SP  97% sold.  Developer: Queiroz Galvão Sales 376 un. – R$ 3,500/m² Usable Area 58/ 123m2 Neo Superquadra – Corporate – CASE Jan/12 BUSINESS UNITS Location Curitiba/ PR  100% sold.  Developer: Arquisul Sales 92 un. – R$ 4,000/m² Usable Area 30/ 70m² 17
  18. 18. LPS Brasil in the Low Income Segment 18
  19. 19. HABITCASA: Focus on Low Income Segment Focus on Low Income Segment Units up to R$ 300 thousand The Habitcasa brand is applied in all Lopes’ markets 19
  20. 20. Sales by Income Segment – Primary and Secondary Markets Contracted Sales Total Contracted Sales = R$4,003 million 1Q11 1Q12 12% 10% 25% 35% 31% 39% 23% 24% Units Sold Total units sold = 12,708 1Q11 1Q12 6% 13% 9% 15% 31% 35% 43% 47% 20
  21. 21. LPS Brasil in the Secondary Market 21
  22. 22. Pronto! SOUTHEAST REGION São Paulo – Acquisition of 51% of VNC, in July 2010, for R$7.1 million (R$ R$1,8 million + R$0,3 million of investments + R$5,2 million of earn out ). Acquisition of 51% of Plus Imóveis, in August 2010, for R$11.7 million (R$4.7 million + R$7.0 million of earn out). Acquisition of 51% of Maber, in September 2010, for R$17.3 million (R$6.0 million + R$11.3 million of earn out). Acquisition of 55% of Local, in December 2010, for R$25.6 million (R$10.0 million + R$15.6 million of earnout) Acquisition of 60% of Erwin Maack, in March 2011, for R$8.4 million (R$2.9 million + R$5.5 million of earn out) Acquisition of 51% of Condessa in July 2011, for R$4.9 million (R$1.9 million + R$3 million of earn out). Acquisition of 60% of Imóvel A in October 2011, for R$24.3 million (R$10 million + R$14.3 million earn out). Acquisition of 51% of Foco in March 2012 , for R$15 million (R$6 million + R$9 million earn out). Acquisition of 51% of Piccoloto in March 2012, for R$10 million (R$4 million + R$6 million earn out). Acquisition of 51% of Cappucci in March 2012 , for R$6.6 million (R$2.5 million + R$4.1 million earn out). Rio de Janeiro – Acquisition of 51% of Self Imóveis, in July 2010,SOUTH REGION for R$ 2,6 million (R$900 thousand + R$1,7 million of earn out)Rio Grande do Sul – Acquisition of 51% of Ducati, in December2010 forR$15,5 million (R$5.3 million + R$10.2 million of earnout). FEDERAL DISTRICT :Paraná – Acquisition of 60% of Thá, in February 2011, for R$20.9 Acquisition of 51% of AçãoDall’Oca in April 2011, for R$12.2 millionmillion (R$7.4 million + R$13.6 million of earnout). (R$3 million + R$9.2 million of earn out). Pronto has 252 stores in 11 States + Federal District : 52 owned stores and 200 licensed brokers 22
  23. 23. Pronto!: A Natural Consolidator Well Defined Acquisition Model with a Successful Track Unique Platform Poised for Growth Record  Present in 11 states and the Federal  Acquisition strategy: District – Companies with expertise in their regional markets – Covers 91% of the Brazilian GDP – Companies with limited access to capital – Over 50 own stores – Well positioned in relevant markets – 200 licensed brokers – Widespread network – Strong presence in São Paulo and Rio de Janeiro  Appreciation and alignment of interests – Earn-out  Unique one-stop-shop business model – 51% ownership stake  Solid client base  Successful acquisitions through the years  Strong internet presence – 18 acquisitions since July 2010 focused on the  Diversified products in the portfolio secondary market – Benchmark for future partners – Accretion Natural Consolidator  Potential synergies: – Scale and reach: network effect – Access to mortgage financing – Expertise of LPS Brasil management 23
  24. 24. 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. 24
  25. 25. Differentiated Model: One-Stop-Shop Secondary Market: a significant potential for origination  Distinctive channel for clients in the secondary market Focus Over 50 own stores and 200 licensed real estate brokers in  Over R$2 billion in financing 11 states and the Federal District Relevance Selective acquisitions to replicate the successful formula  Incipient market in Brazil with huge expansion potential used in the primary market Growth Potential  59% of CrediPronto! transactions are originated through 33% of Pronto!’s contracted sales are financed by Pronto! Credipronto!  Use of LPS Brasil’s platform and significant reduction in CAPEX requirement Synergies Winning Model 25
  26. 26. CrediPronto! Operational Highlights Accumulated Financed Financed Volume Volume* (R$ MM) (R$ MM) 322 2,397 54% 137% 209 1,013 1T11 1T12 mar/11 mar/12 CrediPronto! achieved R$2.4 billion in financed volume 26*Does not include amortization.
  27. 27. CrediPronto! Mortgages Portfolio (R$ MM) 1.989 1,017% 178 Opening portfolio balance Ending portfolio balance Jan/10 Mar/12 The Average Portfolio Balance in the 1Q12 was R$1.8 billion. 27
  28. 28. CrediPronto! Accumulated Sales Volume * (R$ MM) 2.397 2.153 1,956 10% 1,698 1,461 1,219 1,013 854 727 591 474 385 291 217 CrediPronto! granted mortgage loans worth more than R$2.3 billion in its first years of operation 28*Not including amortization / October, November and December are unaudited preliminary draft released on January 30th, 2012
  29. 29. Credipronto!: Unique Partnership to Capture Mortgage Loan Market Potential Business Highlights Innovative Real Estate Financing Process + Market Largest Private Bank Leader in Brazil 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  Profit Sharing with limited credit risk  Leverage on LPS Brasil’s points of sale  Differentiated process of approval and release of funds Efficiency in Release of Credit  Unprecedented credit in the market Evolution of Origination (base 100 = Jan-10)1 3,0% 2,8% 3,1% 2,8% 4,0% 2,4% 2,4% 1,9% 1,7% 1,4% 2,0%  CrediPronto! already has a Market Share of 432 376 411 370 5.7% among private banks (excluding Caixa) 0,0%  It is responsible for more than 18% of the 245 241 mortgage portfolio of Itaú 168 177 -2,0%  Total market financing 1Q12: R$11.6 billion 209 198 189 -4,0% 100 145 147 144 179 125 1T10 2T10 3T10 4T10 1T11 2T11 3T11 4T11 1T12 -6,0% Credipronto! Mercado Market Share CDP! High Growth Potential – Real Estate Financing equals only 5% of Brazilian GDP2 Notes: 1 ABECIP (as of December 30th, 2010) and Company. Ranking based on June/2011 origination 2 Excluding Caixa 29 3 Bacen
  30. 30. Brazilian Real Estate Market 30
  31. 31. Significant Creation of DemandDemographic Bonus Population Pyramid (millions of people)100% 80% 60% 40% 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 Economically active population = 15 – 64 year-old Dependence IndexExpansion of Class C (% of the population) Number of Families by Income Segment (millions) 2003 2008 Growth 2007 - 2030 (8%) 78% 160% 233% 291% 433% 8% 11% 16% 28% 31.7 29.1 27.6 37% 21.8 24% 2007A 49% 15.5 11 2030E 27% 8.4 3.3 4.3 1.1 0.3 1.6 Classes A and B Class C Class D Class E Up to R$1k to R$2k to R$4k to R$8k to Above R$1k R$2k R$4k R$8k R$16k R$ 16kSource: IBGE, Bird, Febraban and FGV 31
  32. 32. Mortgage Market Mortgage Market as a % of GDP 88% 81% 48% 42% 38% 19% 11% 11% 6% 5% 2% 2% UK USA Germany South France Chile Mexico China India Brazil Russia Argentina Africa Source: Goldman Sachs, Abecip, BCB 32
  33. 33. Market Potential for Real Estate FinancingGrowth Drivers Quantitative Housing Shortage (millions of homes)  Housing deficit – 7.2 million houses (2009) 7.9  Incipient mortgage loan market 6.7 6.3 5.8  Declining interest rates 5.4  Rising employees’ income  Growing availability of long-term funding  Increasing secondary market financing  Increasing family turnover 1991 2000 2006 2007 2008Mortgage Loan Access (% by Social Class)2 Family Turnover3 9.0 – 10.0x 7.7% 5.0% 4.0x 3.0% 1.7% 1.8x Classes A and B Class C Class D Class E G-7 Mexico BrazilSource: Bacen and ABECIPNotes:1 Data from 2006, except for Brazil (2009)2 FGV’s Center for Social Studies, 20103 Represents the number of times a family moves to a different house during their lifetime. Source: Credit Suisse 33
  34. 34. Sales Speed Metropolitan Region of São Paulo Units Launched and Sold SP Capital Average (Units Sold/Launched) = 0,95 Average (Units Sold/Launched) = 1,042858 2109 13831644 Year Units Lauched Units Sold Units Sold 2008 34,500 32,800 2009 30,100 35,800 Units Launched 2010 37,300 35,870 2011 37,650 28,320 02M12 2,060 3,180 34
  35. 35. Real Estate Market Overview – Prices Evolution of Average Launches’ Prices in SP R$/m2 R$/m2 6,750 6,840 5,300 3,930 Nominal 3,160 3,170 3,380 3,290 3,550 2,770 2,450 2,120 1,710 1,860 1,480 1,480 1,680 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q12 6,990 6,870 5,900 5,350 5,200 5,340 4,970 5,020 4,840 4,810 5,070 4,900 4,940 4,650 4,570 4,510 4,660 INCC Adjusted 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q12Source: EMBRAESP* Launches occurred in residential vertical in SP Capital Jan/96 to Mar/12. 35
  36. 36. Lopes’ Confidence Index 36
  37. 37. Lopes’ Confidence Index (LCI) – March/12 Lopes is the first company to create a Real Estate Consumer Confidence Index. Lopes’ Confidence Index (LCI) March/12 151 137 124 118 100 82 Mar-09 Mar-10 Mar-11 Mar-12 Jan-09 May-09 Oct-09 Jan-10 May-10 Oct-10 Jan-11 May-11 Oct-11 Jan-12 Feb-09 Apr-09 Dec-09 Feb-10 Apr-10 Dec-10 Feb-11 Apr-11 Dec-11 Feb-12 Jun-09 Jul-09 Aug-09 Sep-09 Nov-09 Jun-10 Jul-10 Aug-10 Sep-10 Nov-10 Jun-11 Aug-11 Sep-11 Nov-11 jan/09 Expectation Index Lopes Confidence Index Present Situation Index Lopes’ Confidence Index intend to measure clients confidence, so Lopes can follow and anticipate, in the short term, housing purchase tendency. The sample has 591 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 37
  38. 38. Operational Highlights 38
  39. 39. Contracted Sales Contracted Sales Units Sold (R$ MM) 4,003 15% 3,479 959,0 671,0 5% 2,804 3,044 12,708 12,046 1Q11 1Q12 1Q11 1Q12 Primary Market Secondary Market In the 1Q12, We Achieved R$ 4.0 billion in Contracted Sales. 39
  40. 40. Breakdown of Contracted Sales Breakdown – Contracted Sales 1Q12 Primary Market (R$ BI) 1.8 (44%) 1.0 50% 56% 58% (24%) 1.3 50% 44% 42% (32%) 2010 2011 1Q12 Secondary Market Non-Listed Homebuilders Listed Homebuilders Top 10 clients 40
  41. 41. Evolution of Launches – Listed Homebuilders and Lopes Evolution of Launches 1Q12 -34% 7,171 4,755 +14% 3,611 3,171 1Q11 1Q12* 1Q11 1Q12 Listed Homebuilders* Value based on the previous Listed Homebuilders - does not include Living, JHSF and CR2 in the 1Q11 or 1Q12. 41
  42. 42. Breakdown Homebuilders Breakdown – Homebuilders Breakdown Top 5 Clients (R$ BI) 4.7% 4.0% 4.1% 6.1% 5.1% 4.4% 47% 44% 51% 5.2% 5.0% 6.1% 56% 6.2% 53% 5.3% 49% 7.1%Nº Homebuilders 292 301 236 9.5% 8.9% 7.6% 2010 2011 1Q12 2010 2011 1Q12 Demais Clientes Other Clients 10 Maiores Clientes Top 10 clients in sales 1st 2nd 3rd 4th 5th 42
  43. 43. Financial Highlights 43
  44. 44. 1Q12 Financial Highlights Net Revenue 14% 88.4 77.4 1Q11 1Q12 Net Income Attributable to EBITDA* Controlling Shareholders¹ 24% 21% 29% 29% 23% 39% 21.3 25.2 16.5 18.1 1Q11 1Q12 1Q11 1Q12¹Shareholders of LPS Brasil through the LPSB3 share*We consider now the EBITDA, excluding other operating expenses (revenues), that considers IFRS non-cash, as the company performance indicator. We recalculated all previous EBITDAs in the sameway. This will be our standart from now 44
  45. 45. 1Q12 Results Results 1Q12 (R$ thousand) LAUNCHES PRONTO! CREDIPRONTO! CONSOLIDATED Gross Service Revenue 73,405 22,724 4,496 100,625 Revenue from Real Estate Brokerage 69,780 22,724 4,496 97,000 Revenue to Accrue from Itaú Operations 3,625 - - 3,625 Earn Out - - - - Net Operating Revenue 64,541 20,003 3,833 88,377 (-)Costs and Expenses (44,644) (14,670) (3,396) (62,710) (-) Stock Option Expenses CPC10 (235) - - (235) (-) Expenses to Accrue from Itaú (238) - - (238) (=)EBITDA 19,424 5,333 437 25,194 EBITDA Margin 30.1% 26.7% 11.4% 28.5% (+/-) Other nonrecurring results - - - - (-)Depreciation and amortization (7,685) (5,923) (12) (13,620) (+/-) Financial Result 18,682 3,262 56 22,000 (-)Income tax and social contribution (10,078) (1,478) (426) (11,982) (=)Net income in period 20,343 1,194 55 21,592 Net Operating Margin 31.5% 6.0% 1.4% 24.4% (=)Net Income in Period - Non-controlling Shareholders (247) - Controlling Shareholders 21.345 Net Margin after Minority Interest 24.2% 45
  46. 46. CrediPronto! P&L* (R$ thousands) 2011 Total Amount Financed 1,270,674 Opening portfolio 707,053 Closing portfolio 1,767,940 Average portfolio balance1 976,864 Financial Margin 24,401 % Spread 2.5% (-) Sales taxes -2,194 (-) Total costs and expenses -37,622 (-) Back Office expenses -6,729 (-) Sales expenses -20,124 (-) Commissions -12,547 (-) Others -187 (+/-) Correspondent bank - (+) Other revenues (Financ.) 1,365 (-) Allowance for doubtful accounts (ADA) 600 (-) Taxes -6,419 (=) Net result -21,835 % Net Margin -98.3% 50% Profit Sharing -10,918*The managerial P&L measures the results of the JV. Olimpia’s Results and all Revenues and Expenses incurred by Itau are considered.• The numbers of the managerial P&L were audited for 2011 by Ernst&Young and, due to its managerial nature, it does not follow accounting standards. 46
  47. 47. Allowance for Doubtful Accounts Example of P&L with a financing contract for a $200 unit: Month 1 Month 2 Month 5 Month 8 Financial Margin $100 $100 $100 $100 Expenses¹ -$60 -$60 -$60 -$60 Specific Allowance - -$5 -$25 +$200 Result $40 $35 $15 $240 Recovery of Default Property Ex: Sale for +$100: Profit for Sale of the $300 the bank recovered property Ex: Sale for -$50: Loss $150 of the bank¹ Including general allowance 47
  48. 48. Additional Information 48
  49. 49. Lopes’ Contracted Sales SeasonalityTwo seasonality components:• Natural variation in sales related to holidays or vacation periods over the year. The first quarter is moresignificantly 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 whichprojects launched are subject to licensing and permit requirements, which account for significant distortionsin a quarter-over-quarter comparison. 41% 37% 32% 33% 31% 30% 30% 29% 29% 28% 26% 27% 25% 24% 25% 24% 22% 23% 23% 21% 22% 18% 19% 19% 17% 16% 1Q Average: 14% 15% 18% 2005 2006 2007 2008* 2009 2010 2011 1Q 2Q 3Q 4Q * The seasonality can not be verified in 2008, because of the effects of the world financial crisis. 49
  50. 50. Ownership Structure Ownership Structure Post-IPO 33% 41% Rosediamond Chairman and Vice Chairman Management Free Float 1% 25% Total of 56,668,005 common shares 50
  51. 51. Contacts INVESTOR RELATIONS CONTACT E mail: ri@lopes.com.br Website: www.lopes.com.br/ri 51

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