Institutional Presentation




                             November 2009
Disclaimer


     This presentation does not constitute an offer, or invitation, or solicitation of an offer to subscribe ...
Investment Highlights




                        3
Investment Highlights




                           Experienced       Simple and Focused
                        Manageme...
Brokerage Market Has No Other Company
With The History and Track Record of Lopes

                                        ...
Lopes‟ Operation




                                               Pronto operates
                              Habitcas...
Simple and Focused Business Model…

Lopes is exclusively focused on providing value-added real estate brokerage services t...
Lopes Net Commission




                                3.23%   3.15%   3.06%
                                           ...
With a Key Role in the Real Estate Value-Chain


           Lopes‟ business is clearly fundamental to the profitability an...
Value-Added Services Across the Development Cycle



   Lopes is focused on providing its clients with a full range of con...
Competitive Advantage




                                                              “Lopes” culture in all business
  ...
Institutional Website



                                                   Evolution of visits to Lopes‟ Website



     ...
Sales Expertise in all Market Segments

                                                      Duo Alto da Lapa Sep/ 08    ...
Geographic Expansion




                       14
Lopes is Growing Nationwide


                                                                             SOUTHEAST REGIO...
Lopes‟ Market Mix




              15%                        13%                       13%           13%    Other*
     ...
Lopes in the Low Income Segment




                                  17
HABITCASA: Focus on Low Income Segment




           Focus on Low Income Segment




           Units up to R$ 180 thousa...
Habitcasa Stands Up as the Biggest Player in sales in the Low Income Segment


                                  It sells ...
Sales by Income Segment 3Q09



                  Units Sold                                                         Contr...
Increase in the Potential Demand


                                               Unit Value                              ...
Better Economic Situation of the Low Income Segment…


                               Monthly Income (Millions of Families...
... and also Better Supply of Mortgages


                                                                                ...
Minha Casa Minha Vida


                                                                           Brazilian Government wi...
Minha Casa Minha Vida



             Steps                               Untill 3 minimum wages   Between 3 and 10 minimu...
Sales Speed MRSP Low Income Segment


                                                                    Units Launched a...
Lopes in the Secondary Market




                                27
Joint Venture Lopes Itaú

             Lopes and Itaú created the first and biggest pure mortgage company of Brazil.




 ...
CrediPronto!


                                                  Innovative Real State Financing Process



              ...
CrediPronto!



                                                    The only real mortgage company of the market and
     ...
CrediPronto!


                                 CrediPronto!‟s Financing

                     (R$ MM)




               ...
Secondary Market: Pronto!‟s Business Model




        Feasible Leadership Assumptions as a Goal




                     ...
Pronto!


                                         2009


                                       November    115 Stores

 ...
Pronto! One Stop Shop Concept




                                     One Stop Shop


                Purchasing/Selling
...
Synergies Between Credipronto! and Pronto! – Competitive Advantage




    Easy Credit
                                   ...
Brazilian Real Estate Market




                               36
Social Economic Scenario and Housing Shortage


                              Age Pyramid in Brazil                       ...
Mortgage Market and the Investment Grade



                                                    Mortgage Market as a % of ...
Launches RMSP – Historic data (1996 - 2008)

                                                                   GVS¹ Launc...
SPMR Real Estate Market Overview – Prices


                                    Evolution of Average Launches‟ Prices in t...
The Secondary Market




                                                                                   Difference (in...
Factors that Sustain the Growth in the Real State Market




                               Financing Availability        ...
Lopes‟ Confidence Index




                          43
Lopes‟ Confidence Index (LCI) - October/09


                                Lopes is the first company to create a Real E...
LCI by Segment


                       The scenario is positive when compared the present purchase intention with the pur...
Operational Highlights




                         46
Contracted Sales‟ Historical*



                                                            Total GVS – Primary Market
  ...
Contracted Sales



                                             Contracted Sales

                           (R$ MM)




...
Units Sold per Region and per Income Segment


                                            12,593


                      ...
Sales Speed over Supply




                 Lopes' Consolidated Sales Speed                                              ...
Financial Highlights




                       51
Net Commission by Market



                                           Net Commission




           3Q08


              ...
Results 3Q09




                  3Q09 Results
                  (R$’000)                              LOPES     PRONTO! ...
Costs of Services Provided and Operating Expenses



                                                     Operating Costs ...
Guidance for 2009




                    55
Sales‟ Guidance for 2009




                                        (R$ MM)



                                          ...
Additional Information




                         57
Lopes‟ Contracted Sales Seasonality

  Two seasonality components:


  • Natural variation in sales related to holidays or...
Ownership Structure



                           Ownership Structure Post-IPO




                      0%
              ...
Analysts Coverage




            Institution       Analyst                     Contact
              Agora        Cristia...
Contacts




           INVESTOR RELATIONS CONTACT



                              E mail: ri@lopes.com.br


            ...
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ApresentaçãO Institucional InglêS 11.11.2009

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ApresentaçãO Institucional InglêS 11.11.2009

  1. 1. Institutional Presentation November 2009
  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 the 30th of September 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 40 s important player at the 1935  Identification of Marginal segment of gated Pinheiros as an attractive communities area and launch one of  Triples in size in a decade,  Start of long term the first buildings in the strengthening its leadership partnership with region  The company‟s first Gomes de Almeida  Wins its 15th consecutive  Start up of sales of hotel logo Fernandez (Gafisa) “Top Imobiliário” condominium (Flats)  Launch one of the  Lopes‟ IPO  Partner of Grupo Espírito first buildings under  Lopes starts its geographic Santo in selling one of the the condominium expansion process largest launching in Lisboa: concept  Lopes‟ website become Parque dos Príncipes leader on real state market 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 $ 2.45 $ 3.10 $ 0.12 $ 10 $ 0.53 Developer $5 $ 1.05 Down- Gross payment Commission $ 1.90 $ 0.73 Agents + Managers $ 0.12 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% 2.61% Net Commission Brazil 2005 2006 2007 2008 3Q09 SP GVS / Consolidated GVS 100% 95% 80% 50% 53% 3.23% 3.16% 3.19% 3.10% Net Commission São Paulo 2.87% 2005 2006 2007 2008 3Q09 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 6,000 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 1,156,919 1,122,373 986,439 861,885 833,105 811,914 839,043 754,398 802,087 726,605 695,047 596,412 749,253 2,382,443 643,288 639,213 2,288,307 2,195,698 2,018,064 1,308,093 594,442 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 Dez Vila Curuça – Jun / 09 CASE ECONOMIC Location São Miguel / SP  100% sold.  Developer: Living / Cury. Sales 252 un. – R$ 1,952/m² Usable Area 43 / 45 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 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 – Acquisition of 60% of Immobilis, in January 2008, for R$2.4 position as the largest consulting and sales player million (10.0x P/E 2008) and an earn-out payment. 15
  16. 16. Lopes‟ Market Mix 15% 13% 13% 13% Other* 16% 8% 9% 6% Northeast 8% 6% 9% 7% South 8% 7% 9% 9% 9% 16% Brasília 24% 21% 5% Rio de Janeiro 18% 20% 6% 6% 53% São Paulo 42% 42% 41% 42% 3Q08 4Q08 1Q09 2Q09 3Q09 *Other: Estpírito Santo, Minas Gerais, Goiás and the city of Campinas 16
  17. 17. Lopes in the Low Income Segment 17
  18. 18. HABITCASA: Focus on Low Income Segment Focus on Low Income Segment Units up to R$ 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 15 public held companies: Agra, Abyara, Brascan, Camargo Correa, Cyrela, Even, Gafisa, Helbor, Klabin Segall, Inpar, MRV, Rossi, Tecnisa, Tenda and Trisul Only Real State Sales in the 3Q09 Brokerage Company increased 43% when specialized on the low compared to the 2Q09 income segment, not only in sales, but also in advisory 9,618 units sold Average Price in the in the 9M09 9M09 of R$128 thousand 66% Sales Speed In the 3Q09 19
  20. 20. Sales by Income Segment 3Q09 Units Sold Contracted GVS Total units sold = 10,280 Total Contracted GVS = R$2,601 million 6% 25% 17% 12% 42% 22% 36% 39% <150K 150k-350k 350k-600k >600k 10% 13% 32% 36% 54% 54% <130K 130k-500k >500K 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 units Sold/Launched Average from Jan/09 to Ago/09 = 1.52 units Sold/Launched 4,146 Average from Jun/08 to Dec/08 = 0.80 4,027 4,010 3,642 3,574 3,578 3,613 3,541 3,430 2,931 2,550 2,544 2,541 2,518 2,368 2,162 2,220 2,092 1,953 1,760 1,677 1,715 1,556 1.561 1,603 1,211 1,113 1,061 946 382 Jun/08 Jul/08 Aug/08 Sep/08 Oct/08 Nov/08 Dec/08 Jan/09 Feb/09 Mar/09 Apr/09 May/09 Jun/09 Jul/09 Ago/09 Units Sold Units Launched Average number of units launched:  Jun/08 to Dec/08: 3,100  Jan/09 to Ago/09: 1,648 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) 54% 41.9 Accumulated Mortgage Inventory in late 2008 and 9M09: 27.2 -GVS: R$213.5MM; 136.6 -Financed Volume: R$136.6MM - Contracts: 465 94,7 -Average Payment Term: 240 months 67,5 - Average Spread : 4.3% - 2Q09 3Q09 Pre Operational Phase + 9M09 The amount financed by CrediPronto! in 3Q09 was achieved through our Pronto! Stores, that totaled 115 stores 31
  32. 32. Secondary Market: Pronto!‟s Business Model Feasible Leadership Assumptions as a Goal Fast Growth Credentialed Converted Stores Stores Start Up Highly Structured Owned Stores First Mover: only Brazilian one-stop-shop High Volume Pronto! present in 11 Brazilian States, and in the Creation Federal District. It has 115 Stores, 73 of which in the MRSP of São Paulo.
  33. 33. Pronto! 2009 November 115 Stores October 109 Stores September 93 Stores August 50 Stores July 34 Stores June 23 Stores May 17 Stores April 11 Stores In the State of SP, Pronto March 9 Stores has 86 stores, 73 in the MRSP and 13 in the February 7 Stores countryside and coast. January 6 Stores 33
  34. 34. Pronto! One Stop Shop Concept One Stop Shop Purchasing/Selling your property + Financing 34
  35. 35. Synergies Between Credipronto! and Pronto! – Competitive Advantage Easy Credit Distribution Access Channel (Financing) Pronto! and CrediPronto! acting together create a competitive advantage that is hard to replicate.
  36. 36. Brazilian Real Estate Market 36
  37. 37. Social Economic Scenario and Housing Shortage Age Pyramid in Brazil Segments by Income in Brazil Income A/B 16% > US$ 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 22.7 21.3 16.5 14.9 15.7 14.1 8.7 1996 1997 2006 2007 2008 9M09 2009E* ¹ Launched values adjusted by the INCC until September/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 68 509 467 458 478 442 +37% 377 341 309 40 38 33 35 35 34 37 36 33 31 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 9M09 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 9M09 Source: Lopes‟ Market Intelligence *2009E – 1997 + GDP growth or similar amount of 2006 (GDP growth – CAGR with data from IBGE, GDP of 2008 was annualized). 39
  40. 40. SPMR Real Estate Market Overview – Prices Evolution of Average Launches‟ Prices in the SPMR R$/m2 R$/m2 3187 3129 3049 2847 2931 2787 2367 2139 Nominal 1795 1622 1718 1609 1151 1197 9M09 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 4029 3804 3876 3720 3659 3709 3636 3513 3586 3358 3261 3164 3081 3161 INCC Adjusted 9M09 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 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) - October/09 Lopes is the first company to create a Real Estate Consumer Confidence Index. Lopes‟ Confidence Index (LCI) October/09 153,4 147.4 145.3 142.8 137.5 141.3 Expectation Index 131.6 133.8 134,4 124.7 125.3 127.0 124.1 Lopes' Confidence Index 116.3 119.0 120.3 115,5 118.0 111.2 105.7 109.4 105.3 100.8 100.5 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 Lopes‟ Confidence Index intend to measure clients confidence, so Lopes can follow and anticipate, in the short term, housing purchase tendency. The sample has 582 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. LCI by Segment The scenario is positive when compared the present purchase intention with the purchase intention for the next 6 months, for all segments. 40% 30% 28% 143.0 141.2 144.4 Low Income 126.4 125.1 129.6 111.7 105.8 116.2 Medium-High High Lopes‟ Confidence Present Situation Expectation Index Index Index The factors that show the optimism for the future are: (i) the perception about the brazilian economic situation in the next 6 months; and (ii) the purchase intention for the next 6 months. (base: jan/2009=100) Source: Lopes Market Intelligence 45
  46. 46. Operational Highlights 46
  47. 47. Contracted Sales‟ Historical* Total GVS – Primary Market (in R$ million) 9,370 CAGR: 36% 5,807 4,873 2,545 1,853 1,556 1,166 1,253 850 591 2000 2001 2002 2003 2004 2005 2006 2007 2008 9M09 * Unaudited managerial information. 47
  48. 48. Contracted Sales Contracted Sales (R$ MM) 2,883 215 2,601 19% 153 2,183 163 2,669 2,448 2,020 3Q08 2Q09 3Q09 Primary Market Secondary Market
  49. 49. Units Sold per Region and per Income Segment 12,593 7,311 Sales per Region (in units) 1,024 1,027 1,635 1,127 672 622 South Region Southeast Region Middle West Region Northeast Region 3Q08 3Q09 5,646 4,349 4,007 3,538 Sales per Segment (in units) 1,271 1,268 603 656 0-150K 150K-350K 350K-600K >600k 3Q08 3Q09 49
  50. 50. Sales Speed over Supply Lopes' Consolidated Sales Speed Habitcasa‟s Sales Speed 60.7% 65.9% 29.3% 25.9% 2Q09 3Q09 2Q09 3Q09 *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 3Q08 2.89% 2.58% 2.24% 2.30% São Paulo Rio de Janeiro Other Markets Brazil 3Q09 2,87% 2.21% 2.35% 2.61% São Paulo Rio de Janeiro Other Markets Brazil 52
  53. 53. Results 3Q09 3Q09 Results (R$’000) LOPES PRONTO! CREDIPRONTO! CONSOLIDADO Net Revenue 62,969 1,386 35 64,390 Operating Costs and Expenses (32,188) (1,837) (509) (34,534) Stock Option Expenses (CPC 10) (1,175) - - (1,175) Expenses accrual from Itaú (238) - - (238) Pro-Forma EBITDA 30,543 (451) (474) 29,618 Pro-Forma EBITDA Margin 48.51% -32.51% -1367.67% 46.00% Pro-Forma Net income 18,747 (1,035) (195) 17,517 Pro-Forma Net Margin 29.77% -74.62% -562.55% 27.20% Without Pronto! and CrediPronto!‟s Brasília had a R$6.3 million Income, effects, Lopes‟ EBITDA would‟ve been while Campinas had a R$2.7 million R$31 million, with a 49% margin, and a Income, what explains the Minority Net Income of R$19 million, with a 30% Interests of R$5.3 million. margin. 53
  54. 54. Costs of Services Provided and Operating Expenses Operating Costs and Expenses (R$ MM) 2.7 Other R$3.5MM Itaú„s expenses accrual R$0.2 MM 38.4 32.2 Depreciation R$2.1 MM 35,7 Stock Option(CPC 10) R$1.2 MM 3.5 Other Total Operating Costs and Pronto! and Credipronto! Operating costs and Expenses Costs Expenses 54
  55. 55. Guidance for 2009 55
  56. 56. Sales‟ Guidance for 2009 (R$ MM) 9,000 Primary and Secondary Markets * 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% 31% 32% 29% 29% 25% 22% 22% 23% 23% 21% 17% 18% 16% 14% 2005 2006 2007 2008* 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% 29% Foreigner Investors - Free Float Nacional Investors - Free Float 6% Controlling 65% Management Total of 49,448,033 common shares 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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