ApresentaçãO Institucional InglêS 18.08.2009
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ApresentaçãO Institucional InglêS 18.08.2009 ApresentaçãO Institucional InglêS 18.08.2009 Presentation Transcript

  • Institutional Presentation
    August 2009
  • 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 30thof June 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
  • Investment Highlights
    3
  • Investment Highlights
    Simple and Focused Value Added Business Model
    Experienced Management Team and Outstanding Track Record
    Unmatched
    Scale and Reach
    Main Distribution Channel in the Industry with a National Footprint
    Already scaled down to face new market conditions in 2009
    Low Risk Business with a Diversified Client Base : Cash Generator Company
    4
  • Brokerage Market Has No Other Company
    With The History and Track Record of Lopes
    • Launch and sell of 14 office buildings at Av. Paulista
    • Launch and sell of 11 office buildings at the Faria Lima region
    • Creation of the launching system with sales stands and marketing materials, attracting customers specially during weekends
    • Mr. Francisco Lopes initiates its activities intermediating properties
    • Introduction of the concept of condominium clubs
    • First “Top Imobiliário” award, in 1993 – Largest Brokerage Company
    • First TV advertisement for a real estate development
    00´s
    • Becomes reference in real estate launchings and presents its new logo
    90´s
    80´s
    70´s
    60´s
    50´s
    • Lopes becomes an important player at the segment of gated communities
    • Triples in size in a decade, strengthening its leadership
    • Wins its 15th consecutive “Top Imobiliário”
    • Lopes’ IPO
    • Lopes starts its geographic expansion process
    • Lopes’ website become leader on real state market
    40´s
    1935
    • Identification of Marginal Pinheiros as an attractive area and launch one of the first buildings in the region
    • Start up of sales of hotel condominium (Flats)
    • Partner of GrupoEspírito Santo in selling one of the largest launching in Lisboa: Parque dos Príncipes
    • Start of long term partnership with Gomes de Almeida Fernandez (Gafisa)
    • The company’s first logo
    • Launch one of the first buildings under the condominium concept
    5
  • Lopes’ Operation
    6
  • $ 2.45
    $ 0.12
    $ 0.53
    $ 1.05
    $ 0.73
    Net Commission
    Premium
    Contract Advisory Fee
    $ 0.12
    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-Buyers
    Client-Developers
    • 46,393 effective buyers1
    • 80,000 prospects included in our data base in 2007
    • Formal relationship through exclusivity agreements
    • Over 160 Clients
    How do we do business?
    Revenue Recognition
    Total Price per Unit
    $ 100
    $ 3.10
    $ 10
    How do we make money?2, 3
    Developer
    $ 5
    $ 1.90
    Down-payment
    GrossCommission
    Agents +Managers
    1 Over the last 5 years in Sao Paulo
    Figures only for example, not related to financials
    Considering Sao Paulo market
    7
  • Lopes Net Commission
    Net Commission Brazil
    2005 2006 2007 2008 2Q09
    SP GVS / Consolidated GVS 100% 95% 80% 50% 42%
    Net Commission São Paulo
    8
  • 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
    Pre Sales
    Speed of Sales
    Concentrated in the
    Launch Period
    Speed of Sales is the Key for Profitability
    Reliance on Sales Force Scale and Efficiency
    More than 5.000 brokers
    …and its scale and reach – nearly impossible to replicate – enhance this importance
    9
  • 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
    Optimizes Media Negotiations
    Coordinates Product Launching Events
    Determines the Site’s Vocation
    Develops Marketing Campaign
    Individual Sales Strategy Created to Each Product
    Coordinates Product Launching Events
    Masters
    Market Research
    Formats Product
    Meeting Buyers’
    “Wants and Needs”
    10
  • Competitive Advantage
    “Lopes” culture in all business units of different states
    One single brand, recognized by the market
    National Integration
    of Systems
    Identity that stands Lopes out from the competitors
    Competitive Advantage: A single, integrated solid Company
    11
  • Institutional Website
    Evolution of visits to Lopes’ Website
    Source: Google Analytics
    12
  • Sales Expertise in all Market Segments
    CASE
    Le Paysage – Oct / 08
    HIGH
    • 65% sold within 8 months.
    • Developer: Yuny.
    Location
    Ibirapuera / SP
    Sales
    24 un. – R$ 60,000,000
    Usable Area
    322 to 367m²
    CASE
    MaxHausPanamby– Apr / 09
    MEDIUM-HIGH
    Location
    • 85% sold within 2 months.
    • Developer: Maxcasa.
    Panamby/ SP
    Sales
    201 un. – R$ 55,000,000
    Usable Area
    70 m2
    CASE
    LuganoClub– May/ 09
    MEDIUM
    • 100% sold in one day.
    • Developers: Yuny.
    Location
    Vila Carrão / SP
    Sales
    104 un. – R$ 42,150,000
    Usable Area
    96 to 206 m2
    CASE
    Dez Vila Curuça – Jun / 09
    ECONOMIC
    • 100% sold within 10 days.
    • Developer: Living / Cury.
    São Miguel / SP
    Location
    Sales
    252 un. – R$ 22,105,440
    Usable Area
    43 / 45 m2
    HelborOffices Norte Sul – Apr / 09
    CASE
    GATED COMMUNITIES
    Campinas / SP
    • 100% sold in one day
    • Developer: Helbor.
    Location
    238 un. – R$ 45,000,000
    Sales
    34 / 44 / 53 / 78 m2
    Usable Area
    Notes: Managerial Reports.
    Absorption calculated over available units
    13
  • Geographic Expansion
    14
  • 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.
    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.
    Minas Gerais – Entry by greenfield operation with beginning of operations in February 2008.
    SOUTHERN REGION
    States of Rio Grande do Sul, Santa Catarina and Paraná – Acquisition of 75% of Dirani, in May 2007, for R$15.1 million (7.5x P/E 2008) and two ear-out payments. In July 2008, Lopes acquired the 25% left by the call/put mechanism.
    MIDDLE WEST REGION
    Federal District – Acquisition of 51% of Royal, in November 2007, for R$12 million (9.0x P/E 2008) and an earn-out payment.
    Goiás - Greenfield operation with beginning of operations in August 2008.
    NORTHEAST REGION
    Bahia - Greenfield operation with beginning of operations in October 2007.
    Pernambuco – Acquisition of 60% of Sérgio Miranda, in August 2007, for R$ 3 million (10.0x P/E 2008) and an earn-out payment.
    Ceará – Acquisition of 60% of Immobilis, in January 2008, for R$2.4 million (10.0x P/E 2008) and an earn-out payment.
    CE
    PE
    BA
    DF
    GO
    MG
    ES
    SP
    RJ
    PR
    SC
    RS
    Lopes tracks developers’ regional movements, consolidates its position as the largest consulting and sales player
    15
  • Lopes’ Market Mix
    Other*
    Northeast
    South
    Brasília
    Rio de Janeiro
    São Paulo
    *Other: Estpírito Santo, Minas Gerais and Goiás.
    16
  • Lopes in the Low Income Segment
    17
  • HABITCASA: Focus on Low Income Segment
    Focus on Low Income Segment
    Units up to R$ 180 thousand
    The Habitcasa brand is applied in all Lopes’ markets
    Utilização da marca em todos os mercados de atuação da Lopes
    18
  • Sales by Income Segment 2Q09
    Units Sold
    Contracted GVS
    Total units sold = 8,321
    Total Contracted GVS = R$2,183 million
    The economic segment will be one of the most important drivers for the long term growth of the real estate industry, due to the Brazilian housing deficit of 8 million homes1.
    1 According to FundaçãoGetúlio Vargas – FGV
    19
  • Better Economic Situation of the Low Income Segment…
    Source: IBGE, FGV, Ernst & Young
    Source: FGV
    Source: “Minha Casa, Minha Vida” Program
    20
  • ... and also Better Supply of Mortgages
    Source: IBGE, BC
    Source: ABECIP, Central Bankof Brazil, CEF e FGV
    21
  • Increase in the Potential Demand
    Mortgage
    R$96,000
    Unit Value
    R$120,000
    30% of income
    commitment
    80% of the total value financed
    Monthly Payment (R$)
    In Minimum Wages
    Interest Tax (%)
    Interest Tax (%)
    22
  • Lopes in the Secondary Market
    23
  • JointVenture Lopes Itaú
    Lopes and Itaú created the first and biggest pure mortgage company of Brazil.
    • Service excellence
    • Competitive financing terms and conditions
    • Speed and quality of processing
    • Experienced credit analysis
    • Successful exposure to the lending business and in joint ventures
    • Direct and exclusive access to its customer database
    • Seamlessly integrated operation with Lopes’ sales process, including an incentive compensation plan
    • Lopes media exposure
    Leadership position in their respective markets
    Management Excellence
    High Value Brands
    Strengthening of mortgage origination and other related services.
    24
  • CrediPronto!
    Innovative Real State Financing Process
    The deadlines mentioned are linked to the complete delivery of the documentation and they can change in case of any restrictions.
    25
  • 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.
    26
  • CrediPronto!
    CrediPronto!’sFinancing
    (R$ MM)
    147.9
    Accumulated Mortgage
    Inventory in 2008 and 1H09:
    • GVS: R$148MM;
    • Volume Financed: R$95MM
    • Contracts: 321
    94.6
    27
  • Secondary Market: Pronto!’sBusiness Model
    Feasible Leadership Assumptions as a Goal
    Fast Growth
    Credentialed
    Stores
    Converted
    Stores
    Owned Stores
    Start Up Highly Structured
    First Mover: only Brazilian one-stop-shop
    High Volume
    Creation
    Pronto! present in 11 Brazilian States, and in the Federal District. It has 50 Stores, 31 of which in the city of São Paulo.
  • Pronto!’s Business Model
    2009
    50 Shops
    August
    34 Shops
    July
    June
    23 Shops
    17 Shops
    May
    11 Shops
    April
    March
    9 Shops
    February
    7 Shops
    6 Shops
    January
  • Pronto! OneStop Shop Concept
    One Stop Shop
    Purchasing/Selling
    your property
    +
    Financing
    30
  • Synergies Between Credipronto! and Pronto! – Competitive Advantage
    Easy Credit
    Access
    (Financing)
    Distribution Channel
    Pronto! and CrediPronto! acting together create a competitive advantage that is hard to replicate.
    31
  • Brazilian Real Estate Market
    32
  • Brazil
    1,8x
    Mexico
    4,0x
    G-7
    9-10x
    Social Economic Scenario and Housing Shortage
    Age Pyramid in Brazil
    Segments by Income in Brazil
    A/B
    > 10 minimum wages- US$ 1.900
    52%
    19%
    5 – 10 minimum wages-
    US$ 950 - US$ 1.900
    C
    28%
    30%
    < 5 minimum wages - US$ 950
    D/E
    20%
    51%
    Source: IBGE
    47 million homes
    Source: Losango
    Quantitative Housing Shortage
    (millions of homes)
    Qualitative Housing Shortage
    7,9
    6,7
    5,4
    Source: CreditSuisse
    1991
    2006
    2000
    * 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
    33
  • MortgageMarketandtheInvestment Grade
    Mortgage Market as a % of GDP
    AAA
    AAA
    AA
    BBB+
    A+
    A+
    A
    BBB+
    BBB-
    A-
    BBB-
    X
    RatingS&P
    Source: Lopes, FMI, S&Pand Santander
    34
  • 20,6
    Launches RMSP – Historic data (1996 - 2008)
    GVS¹ Launched (R$ bn) - RMSP
    1996
    1997
    2007
    2008
    2009E*
    2006
    ¹ Launched values adjusted by the INCC until June/09.
    Nominal GVS launched in 2008 was the same amount as 2007: R$ 20 bn.
    Number of Launches - RMSP
    Units Launched (‘000) - RMSP
    35
    +14%
    +37%
    1997
    1998
    1999
    2000
    2001
    2002
    2003
    2004
    2005
    2006
    2007
    2008
    1H09
    1997
    1998
    1999
    2000
    2001
    2002
    2003
    2004
    2005
    2006
    2007
    2008
    1H09
    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).
  • SPMR Real Estate Market Overview – Prices
    Evolution of Average Launches’ Prices in the SPMR
    R$/m2
    R$/m2
    Nominal
    INCC Adjusted
    Source: EMBRAESP
    36
  • The Secondary Market
    Real estate market by segment
    Difference (in %) between the average price per m² in new development vs. used properties
    (Total in R$ billion, % of total potential sales value)
    100%
    118
    Primary
    Secondary
    In the city of São Paulo, the difference is as high as 30% ~ 50%
    Source: ITBI, Gafisa prospectus, CushmanWakefieldreport, teamanalysis
    37
  • Factors that Sustain the Growth in the Real State Market
    38
  • Lopes’ Confidence Index
    39
  • 116,9
    Lopes’ Confidence Index (LCI) - July/09
    Lopes is the first company to create a Real Estate Consumer Confidence Index.
    Lopes’ Confidence Index (LCI)
    July/09
    +42%
    Lopes’ Confidence Index intend to measure clients confidence, so Lopes can follow and anticipate, in the short term, housing purchase tendency.
    The sample has 585 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
    40
  • 116,9
    Lopes’ Confidence Index by Segment
    The scenario is positive when compared the present purchase intention with the purchase intention for the next 6 months, for all segments.
    The factors that show the optimism for the future are:
    the perception about the Brazilian economic situation in the next 6 months; and
    the purchase intention for the next 6 months.
    39%
    43%
    49%
    Low Income
    Medium-High
    High
    Lopes’ Confidence
    Index
    Expectation
    Index
    Present Situation Index
    (base: jan/2009=100)
    Source: Lopes Market Intelligence
    41
  • Operational Highlights
    42
  • Operating Performance
    2007
    2008
    1H09
    Launches
    4,535
    9,285
    21,260
    Contracted Sales
    3,595
    5,221
    10,099
    Primary Market
    9,370
    3,359
    4,873
    348
    Secondary Market
    728
    235
    11
    States
    13
    11
    Market Value (R$ million)
    519.2
    1,683.5
    326.4
    Headcount
    508
    699
    563
    5,495
    4,993
    Independent Brokers
    5,799
    43
  • Contracted Sales’ Historical*
    Total GVS – Primary Market
    (in R$ million)
    CAGR: 36%
    * Unaudited managerial information.
    44
  • Contracted Sales
    Contracted Sales
    (R$ MM)
    3,279
    2,183
    55%
    1,441
    45
  • UnitsSold per Regionand per IncomeSegment
    Sales per Region
    (in units)
    Sales per Segment
    (in units)
    46
  • Sales Speed over Supply
    Brazil Consolidated Sales Speed Lopes+HabitCasa
    Habitcasa’s Sales Speed
    *Management information,
    The Sales Speed over Supply is obtained based on the quarter’s contracted GVS compared to inventory and launches.
    47
  • Financial Highlights
    48
  • Net Commission by Market
    Net Commission
    2Q08
    2Q09
    49
  • Results 2Q09
    Without Pronto! and CrediPronto!’s effects, Lopes’ EBITDA would’ve been R$22.1 million, with a 43% margin, and a Net Income of R$11.2 million, with a 22% margin.
    Brasília had a R$6.9 million Income, while Campinas had a R$2.8 million Income, what explains the Minority Interests of R$5.7 million.
    50
  • Costs of Services Provided and Operating Expenses
    OperatingCostsandExpenses
    (R$ MM)
    Other
    51
  • Operational Leverage
    PrimaryMarketCostsandExpenses
    Net Revenue
    (R$ MM)
    (R$ MM)
    55%
    18%
    Operational Leverage as a basic premise for growth.
    Result: Net Income Pro Forma increase of 246% with a 20% Margin.
    52
  • Guidance for 2009
    53
  • Sales’ Guidance for 2009
    (R$ MM)
    * 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.
    54
  • Additional Information
    55
  • 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.
    Unstable sales behavior in each quarter accounts for variations in yearly sales
    56
    * The seasonality can not be verified in 2008, because of the effects of the world financial crises.
  • OwnershipStructure
    Ownership Structure Post-IPO
    Total of 49,448,033 common shares
    57
  • Analysts Coverage
    58
  • Contacts
    59