4. 3Q07 – Main Highlights
New Launch Guidance for 2008 and 2009
* 2008: R$ 2.35 billion – R$ 2.65 billion
* 2009: R$ 2.80 billion – R$ 3.20 billion
9M07 launches allow us to confirm PSV target for 2007
* Rossi’s Share = R$ 1.3 billion
Economic Segment
* 37,000 units in the pipeline
Geographical Expansion: 5 new markets
* Total of 43 cities, 13 states and 56 partners
Lots-development team represents 12% (R$ 1.6 billion) of our land bank.
9M07 Adjusted Net Income totaled R$ 108 million
* Adjusted Net Margin of 21.6%
Sales turnover speed (adjusted STS) of 60%
4
Gross Margin and EBITDA Margin in line with our guidance for the year
* Gross Margin 34.9%
* EBITDA Margin 19.2%
Rossi Vendas operating in São Paulo, Porto Alegre and Rio de Janeiro
* Rossi Vendas SP was responsible for R$ 31 million of the total contracted sales
6. Launches (PSV) 3Q07
63%16%
8%
13%
44%
15%
12%
29%
PSV – Price Breakdown (in units)PSV – Price Breakdown (in units)
7 projects launched in the quarter: São Paulo (1), Sorocaba (1), São Caetano (1), Curitiba (1), Porto Alegre (2),
Rio de Janeiro (1)
PSV – Price Breakdown (in R$)PSV – Price Breakdown (in R$)
6
Commercial
> 500M
350M < x > 500M
200M < x > 350M
120M < x > 200M
0 < x > 120M
R$ million
626.8
434.4
1,579.4
762.2
Rossi
Partners
+44%
+107%
119.9 143.1 156.0
284.6
314.5
483.7
606.2
1,294.8
3Q06 3Q07 9M06 9M07
7. 228.9150.7
281.1 377.7
814.9
69.7 50.616.0
3Q06 3Q07 9M06 9M07
Contracted Sales 3Q07
Price Breakdown in R$Price Breakdown in R$
22%
5%
46%
7%
14%
6%
Price Breakdown in unitsPrice Breakdown in units
7
8% 4%
45%10%
29%
4%
R$ million
350.8
166.7
428.3
1,043.8
Rossi
Partners
+110%
+144%
Commercial
> 500M
350M < x > 500M
200M < x > 350M
120M < x > 200M
0 < x > 120M
73%
8. Sizable Land bank
Land bank distributed throughout 37 cities, showing
less dependence on any specific market
11.9 million m2
in buildable area
Future launches (in units) – 68,083
4 to 5 years in the bag for future launches
Potential PSV (100%): R$ 13.6 billion
Rossi’s Share: R$9.6 billion
PSV originated (Rossi’s Share) 3Q07: R$ 1.0 billion
Acquisition MethodAcquisition Method
8
Land bank PSV in R$ MMLand bank PSV in R$ MM
3Q07 Total Rossi
Total 13,557 9,557
End of 2Q07 12,142 9,053
PSV launched in 2Q07 (627) (484)
Originated 3Q07 2,042 988
End of 3Q07 13,557 9,557
BREAKDOWN
+195%
8,756
12,142
8,673
4,591
Rossi
Partners
1,128
2,266 2,481 3,090
4,000
3,463
6,407 6,275
9,052
9,557
3Q06 4Q06 1Q07 2Q07 3Q07
13,557
Cash
38%
Swap by Units
42%
Financial
Swap
20%
9. Land bank...Potential PSV
Focus on low to middle income segment – 75.9% of the residential units priced up to R$ 350K
Land bank 3Q07 - PSV by Regional Office and SegmentsLand bank 3Q07 - PSV by Regional Office and Segments
9
Segment
R$
SP Campinas P. Alegre RJ BH North East Total PSV
< 120 K 321,077 500,405 1,209,078 265,150 302,978 139,533 2,738,221 20.20%
120.1 – 200K 159,982 93,565 348,302 492,411 - 936,703 2,030,963 14.98%
200.1 – 350K 423,646 932,908 1,135,699 1,180,598 - 468,178 4,141,029 30.54%
350.1 – 500K 851,552 83,436 194,564 409,765 - - 1,539,317 11.35%
> 500K 843,998 - 56,250 322,680 - 67,717 1,290,645 9.52%
Commercial - 85,598 - - - 85,448 171,046 1.26%
Lots 724,000 922,340 - - - - 1,646,340 12.14%
Total PSV 3,324,255 2,618,252 2,943,893 2,671,202 302,978 1,697,579 13,557,561
24.52% 19.31% 21.71% 19.70% 2.23% 12.52%
R$ thousand
10. Land bank - Breakdown
2% 13%
19%
22%
20%
25%
Rossi should continue focusing on low to middle income segments... Low income DNA.
10
Land bank – Price and product BreakdownLand bank – Price and product Breakdown
Land bank (Sep -30-2007) = R$ 13.6 billion
Land bank – Regional BreakdownLand bank – Regional Breakdown
São Paulo (city) & Metro Region accounts for 25% of the total
BH
NE
CPS
POA
SP
RJ
20%
15%
31%
11%
1% 12%
10%
Commercial
> 500M
350M < x > 500M
200M < x > 350M
120M < x > 200M
0 < x > 120M
Lots
11. Geographical Presence
Long Term Sustainable Competitive Advantages: Building up Local know-how
Regional Offices (7)Regional Offices (7) Geographical PresenceGeographical Presence
11
43 cities in 13 Brazilian states
5 new states being prospected
56 partnerships
PE
RN
RS
PR
SP
MG
RJ
ES
BA
SC
CE
GO
MS
AM
PA
MA
AL
AC
RR
AP
RO
TO
PI
MA
PB
SE
(1) 1980 – São Paulo
(2) 1996 – Campinas
(3) 1999 – Porto Alegre
(4) 2001 – Rio de Janeiro
(5) 2006 – Belo Horizonte
(6) 2007 – Salvador
(7) 2007 – West of São Paulo
7
2
3
4
5
6
1
13. Adjusted Net Income
17.2
31.6
3Q06 3Q07
+ 83%
3Q07 – Financial Highlights I
13
18.0%
15.6%
EBITDA EBITDA Margin Adjusted Net Margin
Net Revenue (R$ mm)Net Revenue (R$ mm)
EBITDA (R$ mm)EBITDA (R$ mm) Adjusted Net Income (R$ mm)Adjusted Net Income (R$ mm)
Gross Income (R$ mm)Gross Income (R$ mm)
110.4
175.5
3Q06 3Q07
+ 59%
24.9
31.8
3Q06 3Q07
+ 28%
18.1%
22.5%
37.7
60.6
3Q06 3Q07
+ 61%
34.1%
34.5%
Gross Income Gross Margin
14. Net Revenue (R$ mm)Net Revenue (R$ mm)
EBITDA (R$ mm)EBITDA (R$ mm) Adjusted Net Income (R$ mm)Adjusted Net Income (R$ mm)
Gross Income (R$ mm)Gross Income (R$ mm)
286.0
501.4
9M06 9M07
+ 75%
28.2
96.4
9M06 9M07
+ 242%
64.3
108.1
9M06 9M07
+ 28%
21.6%
22.5%
83.9
174.8
9M06 9M07
+ 108%
9M07 – Financial Highlights I
19.2%
9.9%
EBITDA EBITDA Margin Adjusted Net Income Adjusted Net Margin
34.9%
29.3%
Gross Income Gross Margin
15. 27%
64%
9%
3Q07 – Financial Highlights II
Unearned Result (R$ mm)Unearned Result (R$ mm)
96.2%
0.3% 3.5%
Total Debt: R$ 481.0 millionTotal Debt: R$ 481.0 million
Cash Position: R$ 394.0 millionCash Position: R$ 394.0 million
Cash and banks
Short Term Investments
Long Term Investments
Net Debt: R$ 86.9 millionNet Debt: R$ 86.9 million
15
Additional Funding
Issue and Placement of the 1st trenche of
Debentures – R$ 300MM – from a Total of
R$ 600MM
Unearned Result Backlog Gross Margin
255.2
307.2
2Q07 3Q07
+ 20%
36.0%
34.4%
Short Term Construction Financing
Debentures
Long Term Construction Financing
18. Share Performance RSID3
18
RSID3
IBOVESPA
RSID3 x IbovespaRSID3 x Ibovespa
Average Daily Volume
2006: USD 6.0 MM (525M shares)
2007: USD 12.0 MM (506M shares)
Average Daily Volume
2006: USD 6.0 MM (525M shares)
2007: USD 12.0 MM (506M shares)
RSID3
Since the Offering (Feb-2006): + 117%
in 2007: + 99%
RSID3
Since the Offering (Feb-2006): + 117%
in 2007: + 99%
50
75
100
125
150
175
200
225
250
7/apr/06
1/jun/06
24/jul/06
13/sep/06
6/nov/06
2/jan/07
28/feb/07
20/apr/07
13/jun/07
6/aug/07
26/sep/0712/nov/07
19. Coverage – RSID3
Rossi is currently covered by 10 institutions.... 4 more to initiate in the near future
19
Cobertura AtualCobertura Atual
Guilherme Vilazante guilherme.vilazante@ubs.com
Gordon Lee gordon.lee@ubs.com
Marcelo Telles marcelo.telles@credit-suisse.com
Vanesssa Quiroga vanessa.quiroga@credit-suisse.com
Carlos Firetti 5900.cfiretti@bradesco.com.br
Marcos Suzaki 5900.marcos@bradesco.com.br
Adrian Huerta adrian.huerta@jpmorgan.com
Somesh Agarwal somesh.agarwal@jpmorgan.com
Bulltick Rafael Pinho rpinho@bulltick.com
Marcelo Milman mmilman@santander.com.br
Gonzalo Fernandez gofernandez@santander.com.mx
BB Investimentos Antonio Emilio Ruiz antonioemilio@bb.com.br
Unibanco Carlos Macedo carlos.macedo@unibanco.com.br
Carlos Peyrelongue carlos_peyrelongue@ml.com
Alexandre Miguel Alexandre_Miguel@ml.com
Dan McGoey dan.mcgoey@db.com
Michelle Dorea michelle.dorea@db.com
Deutsche Bank
Fator Corretora
Goldman Sachs
Merrill Lynch
Santander
JP Morgan
On the wayInstitution Analysts Contacts
Citibank
Itaú
UBS Pactual
Bradesco
Credit Suisse
21. Notice
21
This material is a presentation of general background information about Rossi Residencial S.A. (“Rossi”) as of the date of this presentation.
Information contained herein has been summarized and does not purport to be complete. This presentation shall not be considered an advice of
investment by potential investors. This presentation is strictly confidential and may not be disclosed to any third person. There are no representations
or warranties, express or implied, regarding the accuracy, fairness, or completeness of the information presented herein, which shall not support any
decision of investment.
This presentation contains statements and information that are forward-looking pursuant section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements and information are only predictions and cannot assure
Rossi´s future performance. Investors have been cautioned that any such forward-looking statements and information are subject to many risks and
uncertainties relating to the operations and business of Rossi and its subsidiaries. As a result of such risks and uncertainties, the actual results of
Rossi and its subsidiaries may be materially different from any future result expressed or implied in the forward-looking statement or information
contained herein.
Although Rossi believes that the expectations and assumptions reflected in the forward-looking statements and information are reasonable and have
been based on data currently available to its officers and directores, Rossi cannot guarantee future results or events. Rossi does not assume the
commitment of update any of the forward-looking statement of information.
Securities may not be offered or sold in the United States unlesss they are registered or exempt from registration under the Securities Act of 1933, as
amended. Any offering of securities to be made in the United States will be made by means of an offering memorandum that may be obtained from
the underwriters. Such offering memorandum will contain, or incorporate by reference, detailed information about Rossi and its subsidiaries, their
business and financial results, as well as its financial statements.
This material is for distribution only to person who (i) have professional experience in matters relating to investments falling within Article 19 (5) of the
Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”), (ii) are persons falling
within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Financial Promotion Order, (iii)a are outside the
United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the
Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to
be communicated (all such persons together being referred to as “relevant persons”). This material is directed only at relevant persons and must not
be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this material relates is available only
to relevant persons and will be engaged in only with relevant persons.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither
this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.