Institutional Presentation
March 2010
Disclaimer
This presentation does not constitute an offer, or invitation, or solicitation of an offer to subscribe for or ...
Investment Highlights
3
Simple and Focused
Value Added
Business Model
Main Distribution
Channel in the
Industry with a
National Footprint
Low Risk...
 Mr. Francisco Lopes
initiates its activities
intermediating
properties
1935
40 s
50 s
60 s
70 s
80 s
90 s
00 s
 Launch ...
Lopes‟ Operation
Lopes operates
in mid-high and
high income
segments of the
primary market
Habitcasa
focuses on low
income...
Lopes is exclusively focused on providing value-added real estate brokerage services to its client-developers,
with a perm...
Lopes Net Commission
SP GVS / Consolidated GVS 100% 95% 80% 50% 48%
Net Commission São Paulo
Net Commission Brazil
3.23% 3...
Lopes‟ business is clearly fundamental to the profitability and returns of its clients…
Working
Capital
Is Fundamental
Pre...
Lopes is focused on providing its clients with a full range of consulting services, from land procurement
advisory to prod...
Lopes: The virtuous circle that makes us the Best Brokerage
Company in the Real Estate Market
+ Market Inteligence + Broke...
Institucional Website
12
Evolution of visits to Lopes‟ Website
Source: Google Analytics,
94,442
1,308,093
2,018,064
2,195,...
Notes: Managerial Reports.
Absorption calculated over available units
Location
Usable Area
Sales
Location
Usable Area
Sale...
Geographic Expansion
14
Lopes is Growing Nationwide
SOUTHEAST REGION
São Paulo – Beginning of operations in 1935. Acquisition of 60% of
Capucci &B...
Lopes‟ Market Mix
42% 41% 42%
53% 52%
20%
6% 6%
5% 6%
9%
24% 21%
16% 14%
9% 7% 9%
7% 12%
8% 9% 6%
6%
6%
13% 13% 16% 13% 10...
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 appl...
19
Habitcasa Stands Up as the Biggest Player in sales in the Low Income Segment
14,713 units sold
in 2009
It sells with 13...
Minha Casa Minha Vida
Brazilian Government will dispose of R$34 bi.
In the State of São Paulo 183,995 units will be built....
Sales Speed MRSP Low Income Segment
Source: Secovi –SP and Lopes’ Market Intelligence.
Units Launched and Sold
SP Capital
...
Lopes in the Secondary Market
22
Strengthening of mortgage origination and other related services.
Leadership position
in their respective
markets
Manageme...
Innovative Real State Financing Process
Credit Analysis Assessment of
the Property
Legal Analysis Issuance of the
Contract...
CrediPronto!
25
CrediPronto!‟s Financing
(R$ MM)
Accumulated Mortgage Inventory in
the end of 2008 and 2009:
-Financed Vol...
Pronto!
2009
February
March
June
July
7 Stores
9 Stores
23 Stores
34 Stores
6 StoresJanuary
11 Stores
17 Stores
April
May
...
Brazilian Real Estate Market
27
19%
14%
52%
16%
Social Economic Scenario and Housing Shortage
5.4
6.7
1991 20072000
7.3
Source: Fundação João Pinheiro e M...
Source: Goldman Sachs – Base 2007-2008
Mortgage Market
Mortgage Market as a % of GDP
86%
66%
50%
40%
33%
22%
10%
6% 5% 5% ...
14.2 15.1 16.6
22.9 21.5
15.7
Number of Launches - RMSP
GVS¹ Launched (R$ bn) - RMSP
Units Launched („000) - RMSP
¹ Launch...
R$/m2
SPMR Real Estate Market Overview – Prices
Source: EMBRAESP
Nominal
INCC Adjusted
Evolution of Average Launches‟ Pric...
63%
37%
Brazil
The Secondary Market
Source: ITBI, Gafisa prospectus, Cushman Wakefield report, team analysis
118
Primary
S...
Lopes‟ Confidence Index
33
(base: jan/2009=100)
Source: Lopes Market Intelligence
Lopes‟ Confidence Index (LCI) - December/09
Lopes is the first comp...
0%
5%
10%
15%
20%
25%
30%
35%
40%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Optimist evaluation growth in the items ...
Sales Speed Over Supply
36
Sales Speed over Supply
29.3% 26.5%
3Q09 4Q09
Lopes' Consolidated Sales Speed
*Management information,
The Sales Speed ove...
Lopes‟ Sales Speed Over Supply
Exclusive sales: the formula of the biggest Sales Speed Over Supply in the
market
34.4%
41....
In 2009 75% of a new development is sold, on average,
6 months after its lauching. In 2008 it was sold in 12 months
LAUNCH...
Sales Speed Over Supply HBC x In-House Sales Forces
-10%
0%
10%
20%
30%
40%
50%
60%
70%
0 1 2 3 4 5 6 7 8 9 10 11 12 13
In...
Operational Highlights
41
Contracted Sales‟ Historical*
* Unaudited managerial information.
Total GVS – Primary Market
(in R$ million)
591 850
1,166...
Contracted Sales
(R$ MM)
Contracted Sales
1,509
2,851 2,448 2,851
8,031
8,658
91
210
153
210
728
599
3,061
1,339
4Q08 4Q09...
14,755
16,798
4,880
2,437
14,713 15,419
4,480
2,276
0-150K 150K-350K 350K-600K >600k
2008 2009
2,794
28,483
4,094 3,3293,4...
Financial Highlights
45
Net Commission by Market
Net Commission
46
4Q08
4Q09
2.79% 2.49% 2.09% 2.49%
São Paulo Rio de Janeiro Other Markets Brazil...
2009 Results
(R$‟000) LOPES PRONTO! CREDIPRONTO! CONSOLIDATED
Net Revenue 216,658 6,777 1,258 224,693
Operating Costs and ...
Costs of Services Provided and Operating Expenses
Operating Costs and Expenses 4Q09
(R$ MM)
48
42.5
3.9
4.3
34.4
Total Ope...
Guidance for 2009
49
Sales‟ Guidance for 2009
(R$ BI)
* The General Value of contracted sales (Contracted GVS) projected in this release may ch...
Additional Information
51
Two seasonality components:
• Natural variation in sales related to holidays or vacation periods over the year. The first ...
Ownership Structure
Total of 49,448,033 common shares
Ownership Structure Post-IPO*
28%
6%
66%
0%
Foreigner Investors - Fr...
Contacts
54
INVESTOR RELATIONS CONTACT
E mail: ri@lopes.com.br
Website: www.lopes.com.br/ri
Upcoming SlideShare
Loading in …5
×

Lopes apresentação institucional btg pactual v2

303 views
237 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
303
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Lopes apresentação institucional btg pactual v2

  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. Simple and Focused Value Added Business Model Main Distribution Channel in the Industry with a National Footprint Low Risk Business with a Diversified Client Base : Cash Generator Company Already scaled down to face new market conditions Unmatched Scale and Reach Experienced Management Team and Outstanding Track Record Investment Highlights 4
  5. 5.  Mr. Francisco Lopes initiates its activities intermediating properties 1935 40 s 50 s 60 s 70 s 80 s 90 s 00 s  Launch one of the first buildings under the condominium concept  First TV advertisement for a real estate development  Start of long term partnership with Gomes de Almeida Fernandez (Gafisa)  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  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 Grupo Espírito Santo in selling one of the largest launching in Lisboa: Parque dos Príncipes  Introduction of the concept of condominium clubs  First “Top Imobiliário” award, in 1993 – Largest Brokerage Company  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  Joint Venture with Itaú Bank in order to create CrediPronto, our mortgage company.  The company‟s first logo  Becomes reference in real estate launchings and presents its new logo Brokerage Market Has No Other Company With The History and Track Record of Lopes 5
  6. 6. Lopes‟ Operation Lopes operates in mid-high and high income segments of the primary market Habitcasa focuses on low income, selling properties up to R$180 thousand Pronto operates in the secondary market, unique model of franchising and flagship conversion Joint Venture with Itaú Bank in providing mortgages 6
  7. 7. 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  Formal relationship through agreements  Over 300 Clients  111,330 effective buyers1  1,280,935 prospects included in our data base Client-Developers Client-Buyers Howdowedo business? Howdowemakemoney?2,3 $ 0.62 $ 0.16 $ 2.22 $ 100 $ 10 Total Price per Unit Down- payment Gross Commission $ 0.85 $ 1.15 Agents + Managers RevenueRecognition $ 5.00 Developer 1 Data from the period between Jan/2001 and Sep/09 2 Figures only for example, not related to financials 3 Considering Sao Paulo market $ 2.00 $ 3.00 Net Commission Bonus Contract Advisory Fee Simple and Focused Business Model… 7
  8. 8. Lopes Net Commission SP GVS / Consolidated GVS 100% 95% 80% 50% 48% Net Commission São Paulo Net Commission Brazil 3.23% 3.15% 3.06% 2.60% 2.54% 3.23% 3.16% 3.19% 3.10% 2.85% 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 8
  9. 9. Lopes‟ business is clearly fundamental to the profitability and returns of its clients… Working Capital Is Fundamental Pre Sales Speed of Sales Concentrated in the Launch Period Reliance on Sales Force Scale and Efficiency Speed of Sales is the Key for Profitability With a Key Role in the Real Estate Value-Chain More than 7,500 brokers Real Estate Development Brazilian Market Dynamics …and its scale and reach – nearly impossible to replicate – enhance this importance 9
  10. 10. Lopes is focused on providing its clients with a full range of consulting services, from land procurement advisory to product formatting, development and sale Value-Added Services Across the Development Cycle Determines the Site‟s Vocation Masters Market Research Formats Product Meeting Buyers‟ “Wants and Needs” Develops Marketing Campaign Optimizes Media Negotiations Coordinates Product Launching Events Individual Sales Strategy Created to Each Product Coordinates Product Launching Events 10
  11. 11. Lopes: The virtuous circle that makes us the Best Brokerage Company in the Real Estate Market + Market Inteligence + Brokers + Products+ Sales + Clients 11
  12. 12. Institucional Website 12 Evolution of visits to Lopes‟ Website Source: Google Analytics, 94,442 1,308,093 2,018,064 2,195,698 2,288,307 2,450,181 2,656,731 3,098,150 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 The most visited website in the real estate market Strong investment in online media Increased generation of Leads Higher sales conversion
  13. 13. Notes: Managerial Reports. Absorption calculated over available units Location Usable Area Sales Location Usable Area Sales Location Usable Area Sales Location Usable Area Sales Location Usable Area Sales 100% sold. Developer: Helbor. CASE 100% sold. Developer: Atua. CASE 100% sold. Developers Kallas. CASE 100% sold. Developer: Yuny. CASE 100% sold. Developer: Even. CASE Sales Expertise in all Market Segments HIGH MEDIUM-HIGH MEDIUM ECONOMIC GATED COMMUNITIES Alto da Lapa / SP 349m² Duo Alto da Lapa Sep/ 08 44 un. – R$ 5,600/m² Chacara Sto Antonio / SP Helbor Offices – Aug/ 09 Mooca/ SP 80 m2 Città Della Mooca – Jul/ 09 80 un. – R$ 3,600/m² Lapa / SP 98 and 136 m2 Good Life Vila Romana– Sep / 09 132 un. – R$ 4,400/m² 13 42 / 45 m² 140 un. – R$ 5,300/m² Mooca/ SP 34/42/43 / 47 m2 Atua Mooca II – Feb / 10 232 un. – R$ 2,380/m²
  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. 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. In September 2009, Lopes acquired the 40% left by the call/put mechanism. Ceará e Rio Grande do Norte – Acquisition of 60% of Immobilis, in January 2008, for R$2.4 million (10.0x P/E 2008) and an earn-out payment. Lopes tracks developers‟ regional movements, consolidates its position as the largest consulting and sales player PR RJ BA SP RS ES SC PE MG DF CE GO 15 RN
  16. 16. Lopes‟ Market Mix 42% 41% 42% 53% 52% 20% 6% 6% 5% 6% 9% 24% 21% 16% 14% 9% 7% 9% 7% 12% 8% 9% 6% 6% 6% 13% 13% 16% 13% 10% 4Q08 1Q09 2Q09 3Q09 4Q09 São Paulo Rio de Janeiro Brasília South Northeast Other* *Other: Ceará, Estpírito Santo, Minas Gerais, Goiás and the city of Campinas 16
  17. 17. Lopes in the Low Income Segment 17
  18. 18. HABITCASA: Focus on Low Income Segment Focus on Low Income Segment Units up to R$ 180 thousand The Habitcasa brand is applied in all Lopes‟ markets 18
  19. 19. 19 Habitcasa Stands Up as the Biggest Player in sales in the Low Income Segment 14,713 units sold in 2009 It sells with 13 public held companies: Agre, Brascan, Camargo Correa, Cyrela, Even, Gafisa, Helbor, Inpar, MRV, Rossi, Tecnisa, Tenda and Trisul Average Price in the 2009 of R$124 thousand 70% Sales Speed In the 4Q09 Sales in the 4Q09 increased 25% when compared to the 3Q09 Only Real State Brokerage Company specialized on the low income segment, not only in sales, but also in advisory
  20. 20. Minha Casa Minha Vida Brazilian Government will dispose of R$34 bi. In the State of São Paulo 183,995 units will be built. Source: Lopes‟ Market Intelligence São Paulo‟s families (3.4 million of families) 41% have a monthly family income between 3 and 10 minimum wages, 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 São Paulo inside the “Minha Casa, Minha Vida” program . 10% has purchase intention for the next 12 months (1.4 million of families) Premise: with the federal government subsidy, the decrease of interest rates and more extended mortgages terms, the minimum family income to acquire a R$100 thousand house became 3 minimum wages, not 6 minimum wages as before. 20
  21. 21. Sales Speed MRSP Low Income Segment Source: Secovi –SP and Lopes’ Market Intelligence. Units Launched and Sold SP Capital 21 Average (Units Sold/Launched) = 0.80 Average (Units Sold/Launched) = 1.40 Units Launched Units Sold 2,116 1,113 4,027 3,613 5,663 382 Aug/09Jul/09 Nov/09Jun/09May/09Apr/09Mar/09Feb/09Jan/09Dec/08 Oct/09Oct/08Sep/08Aug/08Jul/08Jun/08 Nov/08 Dec/09Sep/09 Year Units Launched Units Sold 2008 34.500 32.800 2009 30.100 35.800 4,011 6,131
  22. 22. Lopes in the Secondary Market 22
  23. 23. Strengthening of mortgage origination and other related services. Leadership position in their respective markets Management Excellence High Value Brands Joint Venture Lopes Itaú Lopes and Itaú created the first and biggest pure mortgage company of Brazil.  Direct and exclusive access to its customer database  Seamlessly integrated operation with Lopes‟ sales process, including an incentive compensation plan  Lopes media exposure  Service excellence  Competitive financing terms and conditions  Speed and quality of processing  Experienced credit analysis  Successful exposure to the lending business and in joint ventures 23
  24. 24. Innovative Real State Financing Process Credit Analysis Assessment of the Property Legal Analysis Issuance of the Contract Release of Resources 24 hours Until 3 working days 2 working days 3 working days 5 working days Efficiency in Release of Credit The deadlines mentioned are linked to the complete delivery of the documentation and they can change in case of any restrictions. CrediPronto! 24
  25. 25. CrediPronto! 25 CrediPronto!‟s Financing (R$ MM) Accumulated Mortgage Inventory in the end of 2008 and 2009: -Financed Volume: R$204MM -GVS: R$325MM -Contracts: 703 -Average Payment Term: 285 months The amount financed by CrediPronto! was achieved through our Pronto! Stores, that totaled 152 stores 94,7 136,6 350,0 41.9 67.3 203.9 3Q09 4Q09 End of 2008 + 2009 Guidance 61% 72%
  26. 26. Pronto! 2009 February March June July 7 Stores 9 Stores 23 Stores 34 Stores 6 StoresJanuary 11 Stores 17 Stores April May 50 StoresAugust 93 StoresSeptember 109 StoresOctober 115 StoresNovember In the State of SP, Pronto has 94 stores, 78 in the MRSP and 16 in the countryside and coast. 26 152 StoresDecember
  27. 27. Brazilian Real Estate Market 27
  28. 28. 19% 14% 52% 16% Social Economic Scenario and Housing Shortage 5.4 6.7 1991 20072000 7.3 Source: Fundação João Pinheiro e Ministério das Cidades Source: Credit Suisse Brazil1,8x Mexico4,0x G-79-10x -6% -4% -2% 0% 2% 4% 6% 0 to 4 10 to 14 20 to 24 30 to 34 40 to 44 50 to 54 60 to 64 more than 70 Men Women * Qualitative Housing Shortage is the number of times that a family moves to different houses in life Age Pyramid in Brazil Segments by Income in Brazil Quantitative Housing Shortage (millions of homes) Qualitative Housing Shortage Source: IBGE 28 47 million homes A/B Income > US$ 2,509 Income between US$ 582 and US$ 2,509C Income between US$ 419 and US$ 582D Source: FGV E Income < US$ 419
  29. 29. Source: Goldman Sachs – Base 2007-2008 Mortgage Market Mortgage Market as a % of GDP 86% 66% 50% 40% 33% 22% 10% 6% 5% 5% 3% 3% 1% 1% 0% 0% 15% 11% 2% 3% 2% 35% 30% 15%13% 9% 5% 5% 2% 29
  30. 30. 14.2 15.1 16.6 22.9 21.5 15.7 Number of Launches - RMSP GVS¹ Launched (R$ bn) - RMSP Units Launched („000) - RMSP ¹ Launched values adjusted by the INCC until December/09. 1996 1997 2006 2007 2008 Nominal GVS launched in 2008 was the same amount as 2007: R$ 20 bn. Launches RMSP – Historic data (1996 - 2009) Source: Lopes’ Market Intelligence 2009 30 509 377 341 467 458 538 548 509 442 478 574 548 482 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 +14% 70 33 35 40 35 34 37 31 36 38 68 70 56 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 +37% 2009 2009
  31. 31. R$/m2 SPMR Real Estate Market Overview – Prices Source: EMBRAESP Nominal INCC Adjusted Evolution of Average Launches‟ Prices in the SPMR R$/m2 31 1357 1370 1546 1619 1741 1930 2230 2473 2861 2895 3064 2979 3211 3501 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 3876 3651 3926 3888 3823 3925 4132 3938 4091 3802 3808 3515 3463 3532 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
  32. 32. 63% 37% Brazil The Secondary Market Source: ITBI, Gafisa prospectus, Cushman Wakefield report, team analysis 118 Primary Secondary 100% (Total in R$ billion, % of total potential sales value) Real estate market by segment In the city of São Paulo, the difference is as high as 30% ~ 50% 13 9 11 19 USA Spain South Africa Mexico Difference (in %) between the average price per m² in new development vs. used properties
  33. 33. Lopes‟ Confidence Index 33
  34. 34. (base: jan/2009=100) Source: Lopes Market Intelligence Lopes‟ Confidence Index (LCI) - December/09 Lopes is the first company to create a Real Estate Consumer Confidence Index. 34 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. Lopes‟ Confidence Index (LCI) December/09 118.0 124.7 131.6 133.8 147.4 137.5 141.3 145.3 142.8 153,4 157,8 145,9 100.0 105.7 109.4 116.3 124.1 119.0 120.3 125.3 127.0 134,4 137,6 131,7 82.0 86.8 87.2 98.7 100.8 100.5 99.3 105.3 111.2 115,5 117,5 117,6 jan/09 feb/09 mar/09 apr/09 may/09 jun/09 jul/09 aug/09 sep/09 oct/09 nov/09 dec/09 Expectation Index Lopes' Confidence Index Present Situation Index
  35. 35. 0% 5% 10% 15% 20% 25% 30% 35% 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Optimist evaluation growth in the items that measure the present situation 0% 5% 10% 15% 20% 25% 30% 35% 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Evolução da avaliação "boa" nos quesitos que medem a situação atual Interviewed that considered as “good” the Brazilian present situation Interviewed that considered “good” their family economic situation Interviewed that considered “high” their house purchase intention Linear (Interviewed that considered as “good” the Brazilian presentsituation) Linear (Interviewed that considered “good” their family economic situation) more optimism less optimism (base: jan/2009=100) Source: Lopes Market Intelligence Optimist Evaluation Growth 35
  36. 36. Sales Speed Over Supply 36
  37. 37. Sales Speed over Supply 29.3% 26.5% 3Q09 4Q09 Lopes' Consolidated Sales Speed *Management information, The Sales Speed over Supply is obtained based on the quarter’s contracted GVS compared to inventory and launches. 65.9% 69.7% 3Q09 4Q09 Habitcasa‟s Sales Speed
  38. 38. Lopes‟ Sales Speed Over Supply Exclusive sales: the formula of the biggest Sales Speed Over Supply in the market 34.4% 41.7% 45.9% 49.5% 52.2% 54.3% 48.0% 56.1% 60.9% 64.0% 66.4% 68.0% 79.60% 83.00% 84.60% 85.70% 86.80% 88.40% 56.6% 62.1% 65.0% 67.8% 70.2% 71.8% 30% 40% 50% 60% 70% 80% 90% 100% 30 days 60 days 90 days 120 days 150 days 180 days Lopes SP 2008 Lopes SP 2009 Homebuilder 2 Homebuilder 1 38
  39. 39. In 2009 75% of a new development is sold, on average, 6 months after its lauching. In 2008 it was sold in 12 months LAUNCHING 54% 62% 66% 69% 72% 74% 76% 77% 79% 80% 81% 82% 36% 47% 53% 58% 62% 64% 67% 69% 71% 73% 74% 75% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 1 2 3 4 5 6 7 8 9 10 11 12 2008 2009 Habitcasa‟s Sales Speed Over Supply Month 39
  40. 40. Sales Speed Over Supply HBC x In-House Sales Forces -10% 0% 10% 20% 30% 40% 50% 60% 70% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 In-House Sales Forces Habitcasa‟s Sales Speed Over Supply proves to be much larger than the average of the Internal Sales Forces‟. Habitcasa‟s Sales Speed Over Supply Month 40
  41. 41. Operational Highlights 41
  42. 42. Contracted Sales‟ Historical* * Unaudited managerial information. Total GVS – Primary Market (in R$ million) 591 850 1,166 1,253 1,556 1,853 2,545 4,873 9,370 8,658 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 42
  43. 43. Contracted Sales (R$ MM) Contracted Sales 1,509 2,851 2,448 2,851 8,031 8,658 91 210 153 210 728 599 3,061 1,339 4Q08 4Q09 3Q09 4Q09 2008 2009 Primary Market Secondary Market Patrimóvel 91% 10,099 2,601 18% 3,061 6% 9,257 1,600
  44. 44. 14,755 16,798 4,880 2,437 14,713 15,419 4,480 2,276 0-150K 150K-350K 350K-600K >600k 2008 2009 2,794 28,483 4,094 3,3293,486 25,016 5,813 2,573 South Region Southeast Region Middle West Region Northeast Region 2008 2009 Units Sold per Region and per Income Segment Sales per Segment (in units) Sales per Region (in units) 44
  45. 45. Financial Highlights 45
  46. 46. Net Commission by Market Net Commission 46 4Q08 4Q09 2.79% 2.49% 2.09% 2.49% São Paulo Rio de Janeiro Other Markets Brazil 3.06% 1.94% 2.46% 2.60% São Paulo Rio de Janeiro Other Markets Brazil
  47. 47. 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% Results 2009 47 Without Pronto! and Credipronto!‟s effect, Lopes‟ EBITDA would‟ve been R$94 millions, with a 44% margin and a Net Income of R$59 million, with a 27% margin. Brasília had a R$22.5 million Income, while Campinas had a R$8.8 million Income, what explains the minorities Interests of R$18.1 million.
  48. 48. Costs of Services Provided and Operating Expenses Operating Costs and Expenses 4Q09 (R$ MM) 48 42.5 3.9 4.3 34.4 Total Operating Costs and Expenses Pronto! and Credipronto! Costs Operating Costs and Expenses Other R$3.9 MM Itaú’s Expenses Accrual R$0.2 MM Depreciation R$2.3 MM Stock Option (CPC 10) R$1.4 MM Other
  49. 49. Guidance for 2009 49
  50. 50. Sales‟ Guidance for 2009 (R$ BI) * 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. 50 9.3 12.0 – 12.5 2009 Sales 2010 Guidance 32%
  51. 51. Additional Information 51
  52. 52. 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. Lopes‟ Contracted Sales Seasonality Unstable sales behavior in each quarter accounts for variations in yearly sales 17% 18% 14% 23% 15% 21% 31% 22% 32% 24%25% 22% 23% 29% 28% 37% 29% 41% 16% 33% 2005 2006 2007 2008* 2009 1Q 2Q 3Q 4Q 52 * The seasonality can not be verified in 2008, because of the effects of the world financial crises.
  53. 53. Ownership Structure Total of 49,448,033 common shares Ownership Structure Post-IPO* 28% 6% 66% 0% Foreigner Investors - Free Float Nacional Investors - Free Float Controlling Management 53 * In December 31st 2009.
  54. 54. Contacts 54 INVESTOR RELATIONS CONTACT E mail: ri@lopes.com.br Website: www.lopes.com.br/ri

×