2. Disclaimer
The material that follows is a presentation of general background information about MRV Engenharia e Participações S.A. and its subsidiaries (collectively, “MRV” or the “Company”) as of
the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made concerning, and no
reliance should be placed on, the accuracy, fairness, or completeness of this information.
This presentation may contain certain forward-looking statements and information relating to MRV that reflect the current views and/or expectations of the Company and its
management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or
imply future results, performance or achievements, and may contain words like “believe,” “anticipate,” “expect,” “envisages,” “will likely result,” or any other words or phrases of similar
meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ
materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company nor any of its affiliates, directors, officers,
agents or employees shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements
contained in this presentation or for any consequential, special or similar damages.
This presentation does not constitute an offer, or invitation, or solicitation of an offer to purchase any securities. Neither this presentation nor anything contained herein shall form the
basis of any contract or commitment whatsoever.
The market and competitive position data, including market forecasts, used throughout this presentation was obtained from internal surveys, market research, publicly available
information and industry publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any material respect, we have not
independently verified the competitive position, market share, market size, market growth or other data provided by third parties or by industry or other publications. MRV does not
make any representation as to the accuracy of such information.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without MRV’s prior written consent.
2
3. 1. Highlights
2. Corporate Governance
3. Market Share
4. Operational Efficiency
5. Product Quality
6. Financial Results
7. Sustainability of the Housing Program
8. Potential of Growth
9. Innovation
Attachments
3
Glossary
5. 5
MRV at a glance
▪ Leading homebuilder in Latin America with over 427 thousand units sold
▪ 39 years of history with presence in all Brazilian key markets
▪ National footprint: presence in 158 cities and 22 states in Brazil
▪ MRV is listed under “Novo Mercado”, the highest corporate governance level
▪ MRVE3 is part of 15 Brazilian stock indexes (B3)
▪ Market cap of R$ 6.88 billion (US$ 1.74 billion*)
▪ MRVE3 average trading volume at B3: US$ 16.3 million (1Q19)
▪ The most liquid ADTV among Brazilian homebuilders
▪ Standardized operation aiming high efficient and productivity
▪ Since 2013, recurrent Cash Generation of 3,2 billion.
▪ Continuous innovation to support sustainable and profitable growth
▪ Over 22 thousand employees across the country
* (05/03/2019: US$ 1 = R$ 3.9392)
7. Strong Corporate Governance
• Governance and Compliance
• People
• Operations
• Founder and controlling shareholder with a long term vision
• Growth and sustainability interests are aligned with minority
shareholders
✓ MRV is listed under “Novo Mercado”, the highest corporate governance level
✓ Benchmark in Sustainability: only homebuilder included in B3 Sustainability Index (ISE)
✓ Board of Directors composed by 7 members (3 independents) and Supervisory Board
composed by 3 members
✓ Executives interests in line with our shareholders through long term Stock Option Plan
Communication Chanel:
• Shareholders' recommendations:
assembleia@mrv.com.br
• Confidential Channel:
https://canalconfidencial.com.br/mrv/
60.7%
• Other
Shareholders
5.2%
• Dynamo
32.0%
• Rubens
Menin T. de
Souza
1.6%
• Executives
and Board
Members
0.5%
• Treasury
shares
EXECUTIVE COMMITTEES
Shareholders Structure (MAR/2019)
7
9. 56%
20%
14%
10%
59%
18%
16%
8%
Leadership in the low income segment
Market share
Geographic diversification provide us a
unique position compared to our peers
➢ MRV is the main low income homebuilder in Brazil
➢ 1 out of 200 Brazilians is a MRV client
➢ National footprint provide us more capillarity and
protection from local economy activity downside
9
Launches - 2018
(R$ million)
Net Sales – 2018
(R$ million)
Total: US$ 2,773 million Total: US$ 2,365 million
Source: ER from companies
* (05/03/2019: US$ 1 = R$ 3.9392)
11. Land prospection and
acquisiton
• MRVDI/Lanbank
Comercial
• New Product Line (Eco, Bio, Premium)
• Finishing Kit
Mortgage
Department
• SAC/SICAQ sales process
• Zero Cancelation Sales
Production
• BIM
• Alluminum molds
• Eletrical whip
• “MRV + Verde” and “Obra Verde MRV” seals
Warranty
Services • AT “fits in your palm”
• Enchant
Key delivery
Customer
Relationship
• “Mão na roda”
• “Meu Decorado”
• APPs
11
MRV Pillar: operational efficiency
Productivity increase and Innovation
12. Our structure is ready to absorb 50k units/year
Quality in execution and cost efficiency
SG&A / Net Revenue
Enhancement of productivity indexes and faster asset turnover
+ Asset turnover
+ Standardization
+ Productivity
– Overhead structure
– Cost discrepancy
PI x PS Evolution
Brickworks + Molds
Aluminum
molds
Construction Methods Evolution (# units)
2014 2015 2016 2017
61%33%6%2%
12
The SG&A structure is
ready to absorb the
growth of the company
and its dilution will
contribute to improve
the bottom line.
Internal PI
Benchmark
3.0
Internal PS
Benchmark
8.1%
enhancement
Gross margin %
The company managed
to improve margins up
to 2017. After that,
gross margin was
impacted by the
product mix (bracket
MCMV 1.5)
PI (Productivity Index): Shows how many people are necessary to build one unit. The guideline is: the lower the indicator, the better the result.
PS (Production Speed): Shows the monthly POC of the ongoing projects. The guideline is: the higher the indicator, the better the result.
2018
78%
2019
89%
16. NET REVENUE (R$ million)
* Analysts’ average consensus.
CAGR 2007-2018:
27.2%
NET INCOME (R$ million)
With significant progress year over year
16
CAGR 2007-2018:
28.8%
Market consensus: growth in mid term and 10,1%
stock price potential upside
Recommendation: Buy (9 banks), Neutral (2 banks)
MRVE3 Average Target Price: R$ 17.68 (US$ 4.36)
MRVE3 as of 05/23/2019: R$ 15.96 (US$ 3.94)
Potential
upside
11%
One of the best ROE in the sector, with greater potential
to increase shareholders return.
ROE (4Q18) x P/BV
➢ MRVE3 is one of the most valuable stock in the low income segment
➢ Shareholders return through dividends and stock repurchase
➢ US$ 447.2 million in dividends pay out since the IPO (2007)
➢ US$ 97.6 million in shares buyback program (11% of existing shares)
* (05/23/2019: US$ 1 = R$ 4.0474)
17. Cash position x Leverage
(R$ billion)
17
7 years of positive Cash Generation totaling R$ 3.2 billion MRV started investing in landbank for its
new product lines (SBPE)
Landbank (R$ billion)
➢ The Company's growth has been based on financial efficiency and profitability.
➢ MRV is capable to continuous generate cash, invest in landbank and provide return to the shareholders, maintaining the
company’s healthy capital structure – low leverage and high cash position.
➢ Highest credit corporate rating in the sector by Fitch ‘AA-(bra)’ and Standard & Poor´s ‘AAA(bra)’ .
Solid cash position & low leverage
18. 18
Debt Profile
Term – Liquidity Projection
DEBT FLOW OF MRV TOTAL DEBT – 1Q19
(R$ million)
19. 1,47 1,53
1,15 1,13
1,26
0,71
0,00
0,20
0,40
0,60
0,80
1,00
1,20
1,40
1,60
1,80
MRV TENDA DIRECIONAL CYRELA EZTEC EVEN
P/BV**
P/BV
7,90
6,49
8,13
15,07
10,39
9,07
0,00
2,00
4,00
6,00
8,00
10,00
12,00
14,00
16,00
MRV TENDA DIRECIONAL CYRELA EZTEC EVEN
P/E*
P/E
*Source: Net Income (2019 Bloomberg Consensus); outstanding shares and closing price as of 05/24/2019.
**Source: Total shareholders´s equity in 1Q10; outstanding shares and closing price as of 05/04/2019.
Attractive valuation: P/E and P/BV
• Attractive valuation when compared to other players in the sector
• Recurring Net Income in the last 45 quarters
• Recurring cash generation in the last 26 quarters
19
Average: 9,51
Average 1.21
21. Solid demand in the long term and fund availability
Brazilian housing demand supply
Brazilian housing demand (accumulated)
(in million units)
demand (Ministério das Cidades) and Study of social housing and housing deficit (FGV)
21
In the next 20 years the market needs to delivery ~17 million
houses to meet the total demand.
FGTS Net collection
(R$ billion)
Positive view from macroeconomic recovery
Source: FGTS Multiannual budget, Bacen
Supported by FGTS (Severance Pay Fund for workers)
The main source of funding for low income housing
22. FGTS
¹ Source up to 2011: PME Unemployment rate and source from 2012: PNAD due to its better sensibility and comprehensiveness.
Note: The Employees' Data for 2017 was obtained through the sum of the balance of employment evolution in 2017 (CAGED), in
addition to the total number of employed persons in 2016 (RAIS).
From 2019 to 2022 the FGTS budget is R$ 259.3 billion
to be invested in Housing.
Obs: In 2007, retirement withdrawals increased significantly due to the spontaneous retirement approval by Federal Supreme Court, reducing the net collection in the period.
Source: IBGE, CAGED e FGTS – 2018
Withdrawals (R$ billion)
Budget (R$ billion)
22
Net Collection (billion)
23. +20,4%
23
Caixa Econômica Federal: the main bank for low income mortgage
Quality of 2018 Portfolio:
The Housing balance represented 63% of the
total credit portfolio.
MCMV Contracts:
In 2018, R$ 57.1 billion assigned to more
than 417 thousand housing units
2017 Adjusted*: Exclude the extraordinary event of Saúde CAIXA reversal of
actuarial provision.
Assets under Management:
FGTS balance: R$ 519 bi
Reaffirming its sustainability
to finance the housing
market.
Source: Caixa Financial Statements– Dec/18
24. 24
Housing Credit Portfolio by Risk level
90.2 % of real estate portfolio is concentrated in credit risk up C
level.
EVEN WITH 1.7% DECREASE ON THE TOTAL PORTFOLIO,
THE HOUSING CREDIT ROSE R$ 11.7 bi LTM.
Housing Credit (R$ billion)
Evolution of 3% in 12 months
CAIXA remains the market leader with 68.8% of market share
Source: Caixa Financial Statements– Nov/18, Management Report and Performance Review 4Q18
Caixa Econômica Federal: the main bank for low income mortgage
25. 25
Housing Policies around the world
Housing policies are a priority in every country in the world, especially to give access to
the low-income population.
26. 26
MCMV: Beginning in 2009
5 million contracted units
3.6 million delivered units
Investments of R$ 294 billion
in all income levels
MCMV benefits:
• Political return
• GDP formation
• Jobs creation
• Positive Fiscal Balance
Housing Program: FGTS + MCMV
(Minha Casa Minha Vida)
Housing in Brazil:
87 years of investment in Housing Programs
1930: Offer of real estate credit by the Caixas Econômicas
1946: Creation of “Fundação Casa Popular” – 1st national housing policy
1964: Creation of the SFH and the BNH – with compulsory collection of 1% of the payroll
1967: Creation of the FGTS – collection of 8% of payroll
1986: Dissolution of BNH: inflationary period and increasing withdrawals in FGTS
1990: President Collor creates the “Plano de Ação Imediata para a Habitação” (PAIH).
2000: Individual and Associative Letter of Credit in FGTS and “Pró-Moradia” and “Habitar Brasil”.
2004: National Housing Politics - Social Interest Housing Subsidies
2009: Creation of MCMV – The largest housing program in Brazil
2011: Approval of the 2nd phase of MCMV
2015 : Approval of the 3rd phase of MCMV
2018-2019: Continuity of the 3rd phase of MCMV
The Housing Program was consolidated as a Estate Policy.
Source: Caixa Financial Statements– Dec/17
27. Housing Program: FGTS + MCMV
27
Source: FGTS balance sheet– Sep/18
OGU
10%
FGTS
90%
Source of the Subdsidies
(bracket 1.5, 2)
FGTS = FUNDING
Independence from
the Governement
MCMV (Treasury Money)= SUBSIDIES
• Clients and companies main source of
financing
• Interests subsidies for the clients
• AUM: R$ 519 bi
FGTS Budget: 2019 to 2022:
• R$ 259,2 billion to finance housing, of
which 90% are eligible on MRV segment
(brackets 1.5, 2 and 3)
•1.6 million of houses.
•R$ 34 billion of subsidies
• Clients main source of discount subsidies
• Budget 2019: R$ 4,1 billion (specially level 1)
FGTS sources to maintain
investments and subsidies are:
• Payroll base
• Earned profits from assets
investments
29. The expansion plan aims to increase market share in
larger cities where is concentrated the high demand
for affordable houses in Brazil.
Landbank is ready to support the company growth.
From 2014 landbank in larger cities has increased by 121%
Geographic diversification
Expansion plan
# of cities
From 2007 to 2013
Strategy to increase
diversification
29
From 2014 to 1Q19
Strategy to increase
market share in
larger cities
Landbank position ('000 units)
CAGR: 5.1%
Market deterioration contributed to buy
well located plot of lands with better prices
Land
acquisition
with 31%
discount
30. More dispersion
among the “stores”
More launches
More units
available
More sales volume
Potential for Growth: inventory level and location
30
SãoJosédoRioPreto
Population:446,649
Average sales/month: 126
Average inventory: 1,334
Average sales/month : 99
Average inventory : 1,256
Average sales/month : 97
Average inventory : 1,210
2015 2016 2017
Goiânia
(metropolitanregion)
Population:2,458,504
The inventory level and location impacts directly in sales volume
Average sales/month : 27
Average inventory : 572
Average sales/month : 45
Average inventory : 1,219
Average sales/month : 112
Average inventory : 1,580
31. 31
Unified
management of
landbank
MRV LANDBANKS
Simulation of
viability for landbank
acquisition
MRV Landbank Software
Visual register of landbank
Monitoring of efficiency of the
buyers
$ 90.000,00
Edit Landbank SAVE
MAP GENERAL DATA SELLER DATA
Landbank Simulations
BOUGHT
Name of the Landbank 1
5,000 sq.m.
APPROVING
Technical Viability 1
Gross Margin MRV Cost
$ 140,000,000 $90,000,000
Average selling price Average Selling Price
$ 140,000,000 $ 140,000,000
João da Silva 09/06/2016
REJECTED
Technical Vianility 1
+
33. 33
Digital Transformation
Inteligent and Customized
Sales processes
Virtual Assistent
RPA – Robotic Process Automation
Use of Artificial Intelligence to automate
processes.
Optimization of service capacity.
Reduced operating costs.
QR Code
QR Code as a unit chassis
Visualization of documents guided
by the physical location
Watson Explorer
Interactive Owner's
Manual
Evolution of Robots at
Cognitive Level
35. 35
Cases and Future Projects
Polymeric LaminateSolar Energy
Alternative to replace tiles.
3D PrintProduction with BIM
3D Projects
Integrated budgeting
36. Innovation: Projects Pipeline and initiatives
IP 2.5 DIGITAL SEAL 4.0 INDUSTRY
“MARATONA
DE IDEIAS”
PIPELINE
Production Index 2.5:
Enhancement of
operationg efficiency
Ramp-up and Digital Seal
monitoring
Initiatives to automate
construction sites
Selection and monitoring of
projects aiming at financial
and process improvement
Initiatives and studied
cincepts:
Design Thinking Products
• Vending Machine
• SPV structure
• MRV Energy
36
39. 2018
39 years of history
3,000 units per year 25,000 units per year 40,000 units per year
ADRs Level1
MRV
Foundation
Beginning of
relationship
Start of
Geographic
Diversification
Enactment of
Foreclosure /
Deed of Trust
by Financial
Institucions
Banks Resume
Mortgage
Lending
Private Equity
IPO
1st Negotiation
Correspondant
Equity Follow-On
MCMV 1
MCMV 2
MCMV 3
39
Spin-off of
Log's shares
41. 41
Business Model – Focus on low income
Real Estate –Low Income
Real Estate - Medium/ High
Income
Purchasing Rational Instalments lower than rent -
Purchasing Reason Necessity (1st real estate) Upgrade
Funding Abundant and unchanged rates
(FGTS)
Scarce and recent increase of
rates (Saving Accounts)
Product Standardized Exclusive
Financing Transference During construction phase After key-delivery
Cash Flow Receiving in accordance with the
construction evolution
Financing Provision at the end
of construction period
Price In line with the inflation ~4x bigger than inflation
42. Source : BO MRV –Mortgage Lending 06/09/2016.
1) Minimum Wage 2017: R$ 937.00
➢ Search of the first real estate for family formation
➢ 77% of the clients are single/ engaged
➢ Income range: 61% have an income of up to R$ 2,700
➢ Young clients: 50% are up to 30 years old
➢ LTV of 75%
42
Client Profile
Low Income
What our clients are looking for?
Medium/High Income
➢ Couples
➢ 56% are single and 52% have children
➢ The monthly medium income is R$ 8,390, being that 41% earn
more than R$ 10 thousand
➢ Medium LTV of 62%
Source: Inteligência de Mercado Lopes 2015, ACEBIP and BACEN.
What the clients are looking for?
Purchase Motivation
Location
Playground area
Marriage
* Data from March 2015
43. 43Source: Low income Real Estate: MRV Medium Price, in 2017 price was adjusted with inflation
Real Estate Medium/ High Income: Variation FIPE Zap (in 2017, decrease of real price of the units)
Economic Segment: focus on the acquisition of the 1st real estate, where there is no speculation and exists huge housing deficit.
Appreciation in line with the inflation and low cost financing produces a significant reduction of LTV’s (inflation higher than TR).
Evolution of Real Estate Prices
The evolution of low income real estate prices has less volatility and more consistency than the medium/high income,
preventing the creation of a housing bubble.
❑ Low offer and high demand of low income real estate
❑ MCMV Conditions:
▪Limited income and sales price
▪Sales of 1 real estate per Individual Taxpayer Registration Number
▪Impossibility of resale a unit under the MCMV
45. SFH - Brazilian Housing Finance System
The source cames from
employers depositing 8%
of the monthly salary of
all workers
(Set/18)
Source: Caixa
Total
Balance of
R$ 518.7
billion
Borrowers can use the account
balance in few cases:
Mortgage
Dismissal
Retirement
Others
13%
62%
14%
11%
Mortgage Interest
Rate from 5% to
9.16% a.a + TR
Units up to:
R$ 300,000
SBPE
Deposits made on the
savings of commercial banks
Real Estate Credit
Legal Reserves
Free Resources
65%
30%
5%
SBPE Resources
Market Rate
Interest Rate from
9.0% to 10.5% +TR 1
Units of R$300,000 to
R$1,500,000²
Borrowers can go to any bank and
apply for a real estate loan
according to their credit rating
Interest Rate from 12.252 % +TR
Units above:
R$1,500,000²Notes:
1) Source: BTG Pactual (considering the purchase of a R$500,000 residential unit in São Paulo for an individual
earning R$10,000/month.
2) Source: CMN Resolution 4.676 establishes the maximum SBPE interest rate and increases the unit´s cap price.
Workers are
remunerated 3%
per year+TR
45
FGTS (Severance Pay Fund) - The main source of fund for MRV
Balance of R$ 610 billion
(Feb/19)
Source: Bacen
46. Minha Casa Minha Vida – Housing Program
84% das vendas MRV são
realizadas pelo sistema
PRICE*
2
APRIL/09 TO DEC/10 JAN/11 TO DEC/14
¹ Included 350,000 units added on September 2014.
² Amounts refers to the units to be built in 2016
³ MCMV 1 and 2: Amounts referring to each program.
⁴ Details not yet released
2017-2018JAN/15 TO JAN/17
46
2019
47. Minha Casa Minha Vida: Subsidies and Units Price
SUBSIDIES
47
The Group 1 subsidy is financed with treasury resources.
2
GROUP1.5GROUPS2AND3GROUP3PLUS
UNITS PRICE
48. Payment Breakdown: Typical MRV Client
MCMV Group 2
Unit Price: R$ 153,000
WHERE DOES THE SUBSIDIES COME FROM?
0.6% from OGU (National General Budget)
5.4% from FGTS
Revenue Taxes per unit sold is 4%
4.0%
Real Estate
Income
Taxes
0.6%
Subsidies
MCMV
Fiscal
Balance is
positive
3.4%
Typical MRV Client: Payment Breakdown
The above tax does not include other indirect taxes
such as VAT, Social securities and others.
48
49. MRV on MCMV – Potential for expansion in the next years
0%
0%
0%
0%
0%
5.4%
18.9%
34.7%
0%
13.6%
5.3%
4.4%24.1%
28.2%
32.6%
10.1%
24.3%
15.7%
66.9%
25.8%
43.1%
62.8%
43.1%
37.4%
37.5%
20%
49%
43.3%
Capitals Secondary Cities
Average
11.6%
Average
38.7%
49
MRV
MCMV
Share MRV Contracted Units- January 2015 to March 2017
50. Contracted and Delivered Units
Source: Ministério das Cidades – Datas 2017 up to October/2017
50
Contracted Units MCMV
Delivered Units MCMV
52. Expansion on the number of Cities x Gross Margin
Competitive Advantages and Market Potential
Note: *Information from Statistics and Information Center, from João Pinheiro Foundation.
MRV inhabitants x Landbank in PSV
1.5 million
(R$ 3.8 bi)
2.4 million
(R$ 4.6 bi)
11.5 million
(R$ 31.3 bi)
3.5 million
(R$ 7.9 bi)
Southeast
South
Middle-west
Northeast
Potential market penetration per month
13,719
MRV Actual
Performance
Additional
Potential
Total
Potential
Sales increment (0.72/1000 habitants)
Average sales / month (2016)
Nationwide Footprint
- Present in 22 States and Federal District
- 158 cities attended by the Company
10,704
3,015
52
53. The strategy consists in having the right amount of land well balanced in each region of the cities,
to supply the demand.
Sales level: 60 sales/month
Inventory: 930 units
Dispersion: Units in 2 stores
Sales level: 90 sales/month
Inventory: 1,100 units
Dispersion: Units in 4 stores
Fortaleza
Landbank Units for saleUnits for saleLandbank
2017 DISPERSION: STORES AND LAND
53
Fortaleza Fortaleza
2016 DISPERSION: STORES AND LAND
Stores Strategy: implemented strategy, sales increase
54. In 1Q19, MRV achieved important marks among
the listed companies:
➢ 56% of launches market share in group II and
III of MCMV Program;
➢ 30% of total launches in the quarter.
Competitive Advantages – Market Leader in Brazil
Launches Eligible to MCMV
Nominal Value (R$ billion) (Groups II and III)
Note: The data are estimated and based on the listed Companies’ earnings releases.
54
55. ➢ We have over 4,600 internal brokers, 100% focused in MRV products.
➢ We invest in training and sales techniques to enhance the productivity and quality of our sale process.
➢ Management of commissioning policies of the internal team and definition of sales strategy.
Competitive Advantages – Sales Structure
55
Sales Channels
56. Marketing Investment:
2 REACHING
1 1Q19 INVESTIMENT
3 MAIN CHANNELS
140 Million Brazilians (70% of population)
R$ 58 Million
Updated: March/2019
→R$ 755.1 Million in virtual sales in the 1Q19
→125 virtual attendant focused in high quality
attendance located in Belo Horizonte.
→ 212 virtual bases all over Brazil with 2,063 brokers
Investments Results:
Competitive Advantages – Effective Marketing Campaigns
Television 10%, Internet 35%, Trade MKT 16%, Newspaper 2%,
Radio 2%,Other medias: 35%
56
57. Sources: Alexa and Similar Web – September 2018
Competitive Advantages – Online and Social Midia leadership
57
58. Resolved demands on 1st contact
92.74%
2017
Relationship Portal
General Accesses:
3,655,272
2017
425,855
Number of answered
calls in 2017
Costumer Service
“Conexão MRV”
+200,000
Views of the videos
“Conexão MRV”
#MeuMundoMelhor
+5,000,000
Views of the videos
#MeuMundoMelhor
Complaints:
0.58%*
Year 2017
MRV in Midias
483,484 followers in Twitter
608,165 followers in Google +
3,978,053 Facebook fans
*Number of complaints over total clients (5 years) – Annual view
Client Relationship
Client Access:
69,947
Monthly Average of Single
Calls
58
59. Pre – Sales (% MRV – R$ million)
Sales over SupplyInventory Duration
59
As a consequence of the MCMV's budget constrains during 4Q18 and
1Q19, the volume of units transferred to the banks was well below
potential, increasing our inventory duration.
60. Market leader in the main commercial indicators
Launches
(R$ million)
In 1Q19, MRV launched 22% more than the second peer
60
R$million
1Q18
4Q18
1Q19
61. Market leader in the main commercial indicators
Net Sales
(R$ million)
61
R$million
In 1Q19, MRV sold over twice as much the second peer on MCMV
1Q18
4Q18
1Q19
63. Production Team
✓ Approximately 24 thousand people dedicated to Production
✓ Employees on a leadership position (directors, managers and
coordinators) have been working in the company for an average of 9 years.
✓ At this time, we have 268 sites under construction, located in the following
areas:
Northeast 42 (16%)
Middle-west
23 (9%)
South 53 (20%)
Southeast 148 (55%)
63Updated: Mar/2019
North: 2 (0%)
64. Operational Advantages – Mechanization and New Technologies
Hydraulic Kit
Reduced workforce
Less generated waste
Greater production rationalization
Better site organization
Standardized projects
Higher speed of production
Strategic equipment team
Simplification of projects
Economically viable
Greater environmental sustainability
Increased work security
Standardization, Mechanization
and Intelligent Processes
Concrete
Prefabricated and
standardized door
Aluminum Forms Hoisted Slab
64
65. Years Sample Average Stand. Deviation Variation Coeficient (%)
2012 107 30.36 4.977 16,39%
2013 152 29.69 4.270 14,39%
2014 135 29.73 4.581 15,41%
2015 100 28.77 4.136 14,38%
2016 109 27.39 4.905 17,91%
2017 98 25.06 4.067 16,23%
2018 18 23.52 4.830 20,55%
Operational Advantages - Cost Improvement
It is possible to identify a decrease in average cost, reaching the lowest
level in 7 years.
Which means that our projects are with a better operational efficiency.
Increase of efficiency results in:
✓ Less discrepancy in costs and quality;
✓ Lower execution cost 65
Data-base: Septemberl 2018
67. Typical MRV accumulated Cash Flow
Since simultaneous sales process started, MRV has considerably
decreased its collection period, contributing to less working
capital need per project launched.
Working Capital Need = Payables – Receivables (inventory not included)
67
