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  • 1. 11Q13 PresentationPresentersMarcos Lopes – CEOFrancisco Lopes – COOMarcello Leone – CFO and IROBruno Gama - COO CrediPronto!
  • 2. 2This presentation does not constitute or form part of any offer, or invitation or solicitation of any offer to purchase,sell or subscribe for shares or other securities of the Company, nor shall this presentation or any informationcontained herein form the basis of, or act as inducement to enter into, any contract or commitment whatsoever.This presentation contains financial and other information related to the business operations of Lopes –LPS BrasilConsultoria de Imóveis S.A and its subsidiaries (“LPS” or the “Company”) as of and for the period ended March31st 2013. It should not be considered as a recommendation for prospective investors to sell, purchase orsubscribe for securities of the Company. The information presented herein is in summary form and does notpurport to be complete. No reliance should be placed on the accuracy completeness of the informationcontained herein, and no representation or warranty, express or implied, is given on behalf of the Company orits subsidiaries as to the accuracy completeness of the information presented herein.This presentation contains forward-looking statements. Investors are advised that whilst the Company believesthey are based on reasonable assumptions by Management, forward-looking statements rely on currentexpectations and projections about future events and financial trends, and are not a guarantee of future results.Forward-looking statements are subject to risks and uncertainties that affect or may affect business conditionsand results of operations, which therefore could materially differ from those anticipated in forward-lookingstatements due to several factors, including competitive pressures, Brazilian macroeconomic conditions,performance of the industry, changes in market conditions, and other factors expressed or implied in theseforward-looking statements or disclosed by the Company elsewhere, factors currently deemed immaterial.The forward-looking statements contained herein speak only as of the date they are made and neitherManagement, nor the Company or its subsidiaries undertake any obligation to release publicly any revision tothese forward-looking statements after the date of this presentation or to reflect the occurrence of unanticipatedevents.Forward-looking statements
  • 3. 3ScheduleI. HighlightsII. Operational ResultsIII. Credipronto!IV. Financial Results
  • 4. 4Highlights
  • 5. Highlights5 LPS achieved a new record with R$ 4.4 billion of transactions closed in a first quarter.Increase of 9% above 1Q12 Total transactions closed in the primary market of R$ 3.2 billion, increasing 6% above 1Q12 Total transactions closed in the secondary market of R$ 1.1 billion. Growth of 17% from 1Q12 Net revenue of R$ 98.7 million, increasing 15% above 1Q12 EBITDA of R$ 30.9 million, growth of 24% from 1Q12. EBITDA Margin of 31.3%, 242 bps above1Q12 Net Income of Controlling Shareholders before IFRS was R$ 19.2 million with net margin of19.5%. Increase of 40% from 1Q12 and a net margin improvement of 350 bps Growth of 50% of CrediPronto!’s ending portfolio balance compared to 1Q12 CrediPronto! originated mortgage loans worth R$ 381 billion in 1Q13, up 18% from 1Q12 Acquisition of 29% additional stake in Itaplan for approximately 4x P/E multiple, LPS nowowns 80% of Itaplan
  • 6. 6Operational Results
  • 7. Transactions Closed(R$ million)Transactions Closed7Number of Transactions Closed3,044959+9%1Q134,3533,2291,1241Q124,003Primary MarketSecondary Market12,70810,3101Q129,1902,2142,398-10%1Q1311,404(# units)Transactions closed grew 9% in 1Q13. Highlight to the 17% growth in thesecondary market
  • 8. Sales Speed over SupplyLopes Consolidated Sales Speed Habitcasa’s Sales Speed81Q1316.6%4Q1215.9%1Q1330.4%4Q1229.2%(%) (%)Transactions closed/supply ratio remains steady compared to 4Q12
  • 9. UnitsTransactions Closed911,404 unitsR$ 4,353 millionTransactions Closed by Income Segment – Primary / Secondary Markets35%24%31%10%40%27%26%6%9%35%13%43%>600<150 150-350 350-60012%35%20%32%R$ 4,003 million12,708 units1Q12 1Q131Q12 1Q13
  • 10. Transactions Closed by Region – Primary and Secondary MarketTransactions Closed106%12%4%22%51%6%5%14%4%21%51%4%NorthestSouthBrasíliaRio de janeiroSão PauloOthers1Q12 1Q13Increase of stake of São Paulo and South regions
  • 11. Breakdown of Transactions Closed11Breakdown Transactions Closed(em %)1Q1341%59%1Q1242%58%Listed HomebuildersNon Listed HomebuildersBreakdown Transactions ClosedPrimary Market(em %)26%44%31%Listed HomebuildersSecondary MarketNon Listed Homebuilders
  • 12. Breakdown of Homebuilders49%53% 55%64%51% 47% 45%36%2010 2011 2012 1Q13Other Homebuilders Top 10 Homebuilders7,6%9,5% 9,3% 7,1%7,1%5,3% 6,8%4,6%6,1%5,2%5,5%4,6%6,1% 5,1% 4,8%4,5%4,7% 4,0% 4,0% 4,3%2010 2011 2012 1Q131st 2nd 3rd 4th 5th12Breakdown – Homebuilders Breakdown Top 5 Homebuilders(em %) (em %)
  • 13. LPS Brasil in the Mortgage MarketCrediPronto!13
  • 14. CrediPronto!14R$381 MM inMortgagesAverage LTV of59.6%1,249 ContractsAverage Periodof 293 monthsAverage Rateof 8.9% + TR1Q13
  • 15. Financed VolumeCrediPronto!(R$ MM)15(R$ MM)Mortgage Portfolio381322+18%1Q131Q12+50%Ending PortfolioBalance 1Q132,986Ending PortfolioBalance 1Q121,989The average portfolio balance was R$ 2.8 billion in 1Q13. The total volumegranted until Mar, 13 reached R$ 4.0 billion
  • 16. CrediPronto!3925177078811.1621.4541.7561.9892.2662.4922.7712.986Jun, 10 Sep, 10 Dec, 10 Mar, 11 Jun, 11 Sep, 11 Dec, 11 Mar, 12 Jun, 12 Sep, 12 Dec, 12 Mar, 1216Ending Portfolio Balance(R$ MM)The ending portfolio balance of Credipronto! has been grewing on average6.3% per month since Jun,10 and reached R$ 3.0 billion in Mar, 13
  • 17. Financial Results17
  • 18. 18Net Commission by MarketNet Comssion Fee1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13BRAZIL 2.3% 2.4% 2.4% 2.4% 2.3% 2.4% 2.4% 2.4% 2.4%PrimarySP 2.9% 3.0% 2.9% 3.1% 2.8% 3.1% 3.0% 2.9% 2.9%Habitcasa 1.9% 1.9% 2.1% 2.1% 2.0% 1.9% 2.1% 2.0% 2.4%RJ 2.2% 2.0% 2.2% 2.1% 2.1% 2.1% 2.0% 2.2% 2.2%Other Markets 2.1% 2.1% 2.1% 2.1% 2.1% 2.0% 2.1% 2.1% 2.1%SecondarySP 2.2% 2.3% 2.3% 2.4% 2.2% 2.2% 2.4% 2.2% 2.3%RJ 2.4% 2.5% 2.4% 2.3% 2.3% 2.0% 2.3% 2.2% 2.3%Other Markets 2.1% 2.4% 2.4% 2.5% 2.3% 2.5% 2.1% 2.5% 2.0%
  • 19. Gross and Net RevenueNet Revenue19(R$ MM)Gross Revenue(R$ MM)+15%1Q13112.41Q1297.91Q1398.71Q12+15%86.0Net revenue grew 15% and reached R$ 98.7 million in 1Q13
  • 20. Gross Revenue ReconciliationIMPORTANT CRITERIA FOR CONTRACTED SALESThe contracted sales released in the quarter is exclusively based on the invoiced sales,which multiplied by the net commission result in the gross revenue of the quarter.Thus, the contracted sales meets all the criteria for accounting the Company’s grossrevenue, even including the contract approval by the homebuilder. Additional salesgenerated during this same period, that do not meet all the accounting criteria were notconsidered as contracted sales of the period.201Q13 - Gross Revenue Reconciliation (R$ Million)Contracted Sales (a) 4,353Net Comission (b) 2.4%Gross BrokerageRevenue (a) x (b)103.8Revenue to Accrue from ItaúOperations3.6Other revenues 6.0Ajustment to Present Value (1.1)Gross Revenue 112.4
  • 21. Results 1Q1321Results 1Q13 Before IFRS(R$ thousand)Lauches Pronto! CrediPronto! ConsolidatedGross Service Revenue 84,685 24,398 3,287 112,370Revenue from Real Estate Brokerage 81,060 24,398 3,287 108,745Revenue to Accrue from Itaú Operations 3,625 - - 3,625Earn Out - - - -Net Operating Revenue 74,415 21,439 2,895 98,749(-)Costs and Expenses (33,547) (14,182) (2,220) (49,948)(-)Holding (14,190) (4,088) - (18,278)(-) Stock Option Expenses CPC10 (303) - - (303)(-) Expenses to Accrue from Itaú (238) - - (238)(+/-) Equity Equivalence - - 961(=)EBITDA 26,136 3,169 1,636 30,941EBITDA Margin 35.1% 14.8% 56.5% 31.3%(+/-) Other nonrecurring results (826) - - -(-)Depreciation and amortization (2,672) (771) - (3,443)(+/-) Financial Result 2,724 340 0 3,065(-)Income tax and social contribution (1,659) (2,076) (2,256) (5,991)(=)Net income before IFRS 23,704 663 (620) 23,747Net Margin before IFRS 31.9% 3.1% -21.4% 24.0%(-) Non-controlling Shareholders (4,526)(=) Net Income Attributable to Controlling Shareholders Before IFRS* 19,221Net Margin Controlling Shareholders 19.5%*We consider the net income ajusted by non cash IFRS 3 effects (Business Combination) the best net income indicator
  • 22. Net Income 1Q13 by segment22Launches NetIncome Before IFRS23,704(32%)Taxes overintangible assets2,640Earnout impact783Call/put effect2,736Amortization ofintangible assets6,373Launches NetIncome After IFRS16,452(22%)663(3%)Call/put effect1,098Earnout Impact7,693Impairment3,764Amortization ofintangible assets4,826Pronto! NetIncome after IFRS864(4%)Pronto! NetIncome Before IFRSNet Income from launches 1Q13 (R$ Thousand)Net Income from Pronto! 1Q13 (R$ R$Thousand)
  • 23. 23Results 1Q13 – Launches segment before IFRSLaunchesEBITDA & MarginLaunchesNet Income & Margin before IFRS+33%23,704(32%)1Q12 1Q1317,849(28%)(R$ Thousand)(R$ Thousand)26,136(35%)1Q1222,912(35%)+14%1Q13
  • 24. 24Results 1Q13 – Pronto! segment before IFRS+72%1Q133,169(15%)1Q121,846(9%)Pronto!EBITDA & MarginPronto!Net Income & Margin before IFRS1Q13663(3%)1Q12-226(-1%)+393%(R$ Thousand) (R$ Thousand)
  • 25. Results 1Q13 – Launches and Pronto P&L25P&L Launches and Pronto! 1Q13 Before IFRS(R$ thousand)1Q13 1Q12 ∆% 1Q13 1Q12 ∆%(=)Transactions Closed 3,228,591 3,043,574 6% 1,124,034 959,211 17%(=)Gross Revenue 84,685 73,405 15% 24,398 22,724 7%(-)Deductions (10,270) (8,864) -16% (2,959) (2,720) -9%(=)Net Revenue 74,415 64,541 15% 21,439 20,004 7%(-)Costs and Expenses (48,279) (41,629) -16% (18,270) (18,159) -1%(=)EBITDA 26,136 22,912 14% 3,169 1,846 72%EBITDA Margin 35.1% 35.5% - 0.4 p.p. 14.8% 9.2% + 5.6 p.p.(-)Other non recurring losses (826) - - - - -(-)Depreciation and amortization (2,672) (3,252) 18% (771) (799) 3%(+/-)Financial Result 2,724 5,471 -50% 340 205 66%(-)Income tax and social contribution (1,658) (7,282) 77% (2,076) (1,478) -40%(=)Net Income 23,704 17,849 33% 663 (226) 393%Net Margin 31.9% 27.7% + 4.2 p.p. 3.1% -1.1% + 4.2 p.p.Launches Prontos
  • 26. EBITDA and Net Income261Q13+24%30,9(31%)1Q1224,9(29%)EBITDA1EBITDA Margin (%)(R$ MM)1Q12+40%1Q1313,8(16%)19,2(19%)Net Income Attributable to ControllingShareholders ex-IFRS 2Net Margin (%)(R$ MM)1) Includes results from subsidiaries and companies under shared-control, in accordance with equity accounting, and results from non-controlling shareholders.Note: EBITDA is not an accounting measure and does not represent the cash flow for the reported periods, and therefore should not be used as an alternative tocash flow as a measure of liquidity. The Company’s EBITDA was calculated in accordance with CVM Instruction 52. Adjusted by non recurring effects with theclosing of LPS Goiania.2) We consider the net income adjusted by non cash IFRS 3 effects (Business Combination) the most accurate net income indicator.
  • 27. 27IFRS Impacts – Net Income before non-controlling shareholders(1) Impairment of Goodwill and Intangible Assets from Acquisition. Since 2010, the acquisitions made by LPS Brasil areaccounted by the “CAP” of “Earnout” amounts. Every year, as the CAP amounts are not confirmed by the performance of thecompanies, goodwill and intangible assets are impaired accordingly, with a counter-entry reducing the earnout amountspayable.(2) Amortization of Intangible Assets.(3) Combined effect from: i) Gains and Losses, with non-cash net effects, from the booking of call and put options atsubsidiaries, based on the fair value of future estimates, and ii) non-cash correction/write-off of earnout installments payable.(4) Deferred income tax on intangible assets of LPS Brasil.(5) Effects related to deferred income tax and amortization of intangible assets at non-controlling shareholders.DescriptionBeforeIFRSIFRS Effects* After IFRSNet Operating Revenue 98,749 98,749Costs and Expenses -67,808 -3,764 -71,572Non-Recurring Losses -826 0 -826Depreciation and Amortization -3,443 -11,199 -14,642 (2)Finance Result 3,065 5272 8,337 (3)Operational Profit 29,737 -9,691 20,046 (1)+(2)+(3)Income tax and social contribution -5,990 2640 -3,350 (4)Net Income 23,747 -7,051 16,696 (1)+(2)+(3)+(4)Non-controlling Shareholders -4,526 5839 1,313 (5)Net Income attributable tocontrolling shareholders19,221 -1,212 18,009 (1)+(2)+(3)+(4)+(5)* IFRS 3 non cash effects (business combination)
  • 28. CONTACTSMarcello LeoneCFO and IROTel. +55 (11) 3067-0015IRTel. +55 (11) 3067-0218E-mail: ri@lopes.com.brwww.lopes.com.br/ir28