3Q11 Results Conference Call Presentation

1. 3Q11 and
9M11 Results
11/11/2011 > Investor Relations
Villa Flora - Sumaré – São PauloRossi Praças Ipê Branco | Sumaré – São Paulo
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2. 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 directors, 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) 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
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This presentation does not constitute an offer, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither this
presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
Disclaimer
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3. 2
Heitor Cantergiani
CEO
Highlights
Leonardo Diniz
Sales Officer
Operating Performance
Cássio Audi
CFO and IRO
Financial Performance
Renato Diniz
Engineering Officer
Execution – Construction Technology
Agenda
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4. 3
(1) Cash burn excludes non-recurring expenses and the stock buyback program
(2) Adjusted for non-recurring selling expenses
www.rossiresidencial.com.br
Highlights
Operating Performance
 Launches (Rossi’s share): R$ 1.0 billion, 8% higher than in 3Q10.
 Contracted Sales (Rossi’s share) reached an all-time high of R$917 million, 14% higher than in 3Q10;
 The low income segment represented 41% of Rossi’s total PSV;
 SOS of 25% in the quarter;
Financial Performance
 Cash burn (¹) falls to R$ 93 million in 3Q11;
 Net Revenue reaches R$ 2,2 billion in 9M11, 21% higher than in 9M10;
 Gross Income reaches R$ 672 million, 21% higher than in 9M10 - Gross Margin: 31%;
 EBITDA (²) : R$ 149 million, 13% higher than in 3Q10 - EBITDA Margin: 20%;
 Net Income (²) : R$ 96 million in 3Q11, and R$ 268 million in 9M11;
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5. 4
Execution -
Construction
Technology
Rossi Mais Recanto da Taquara | Rio de Janeiro - RJ
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6. Campinas plant
Construction Technology
Rossi continues to intensify technology use and pre cast at its construction sites
 Lower expenses with workforce
 Lower execution time
 Higher quality
 Standardization
 Pioneer in the large scale use in Brazil
Campinas plant
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7. Campinas land – view from highway Campinas land
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Production center Campinas (on going project)
Total Capacity (units/year) – 2.000

8. Campinas - SP
Fábrica
Americana
Campinas
Piracicaba
Itu
Sorocaba
Jundiai
Blueprint Location
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Production center Campinas (on going project)
Total Capacity (units/year) – 2.000

9. Brasília - DF Total Capacity (units/year) – 2.000
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Production center Brasilia (on going project)

10. Fábrica
Brasília
Brasília - DF
Blueprint Location
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Total Capacity (units/year) – 2.000
Production center Brasilia (on going project)

11. 10
Operating
Performance
Rossi 360 Home & Business | Juiz de Fora – MG
Sales success : 80% sold in 3Q11

12. 46%
39%
15%
Conventional
Low Income
Commercial
R$ million
Launches www.rossiresidencial.com.br
Breakdown by Segment (% Rossi) – 9M11 Breakdown by Region (% Rossi) – 9M11
*RMSP – Metropolitan Region of São Paulo
930 1.008
2.257
3.040
445 162
984
508
3Q10 3Q11 9M10 9M11
Rossi Partners
1,375 35%
1,170
3,241
3,547
8%
20%
20%
9%
8%
8%
5%
4%
4%
4%
4%
3%
2%
2%1%
São Paulo (11 cities)
Distrito Federal
Rio Grande do Sul
Minas Gerais
Rio de Janeiro
Amazonas
Bahia
São Paulo (RMSP)
Espírito Santo
Paraná
Sergipe
Santa Catarina
Mato Grosso
Pernambuco
Mato Grosso do Sul
Ceará
Pará
Rio Grande do Norte
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13. 18%
13%
12%
12%
11%
8%
6%
4%
3%
3% 3%
1%
São Paulo (17 cities)
Distrito Federal
Rio Grande do Sul
Rio de Janeiro
São Paulo (RMSP)
Amazonas
Minas Gerais
Ceará
Goiás
Paraná
Sergipe
Pernambuco
Bahia
Pará
Espírito Santo
Mato Grosso
Rio Grande do Norte
Santa Catarina
Mato Grosso do Sul
47%
42%
12%
Conventional
Low Income
Commercial
Contracted Sales www.rossiresidencial.com.br
R$ million
Breakdown by Segment (% Rossi) – 9M11 Breakdown by Region (% Rossi) - 9M11
*RMSP – Metropolitan Region of São Paulo
802 917
2.178
2.581
284
316
655
809
3Q10 3Q11 9M10 9M11
Rossi Partners
1,086
1,233
2,833
3,391
14%
19%
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14. Successful Launches in the quarter
www.rossiresidencial.com.br
Rossi 360 Home & Business
Commercial
Juiz de Fora - MG
420 units
80% sold
Rossi Horizon Jardins
Conventional
Aracaju - SE
39 units
100% sold
Rossi Andradas Office
Commercial
Belo Horizonte - MG
159 units
34% sold
Rossi Cosmopolitan
Conventional
Curitiba - PR
201 units
32% sold
Vivendas do Aleixo
Low income
Manaus - AM
140 units
49% sold
Rossi Mais Recanto da Taquara
Low income
Rio de Janeiro- RJ
190 units
70% sold
Rossi Praças Ipê Branco
Low income
Sumaré - SP
180 units
50% sold
Rossi Office Sumaré
Commercial
Sumaré - SP
126 units
100% sold
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15. SOS and Inventory
www.rossiresidencial.com.br
21%
23%
25%
26%
27% 28%
25% 25% 25%
11
10
9
9
8
8
9 9 9
1,959 2,101 2,006 2,052 2,180 2,364 2,319 2,701 2,823
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
21%
23%
25%
26%
27% 28%
25% 25% 25%
11
10
9
9
8
8
9 9 9
1,959 2,101 2,006 2,052 2,180 2,364 2,319 2,701 2,823
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
SoS
Months of Sale
Inventory
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16. 34%
12%
10%
8%
5%
5%
4%
3%
3%
3%
2%
1%
São Paulo (20 cities)
Distrito Federal
Minas Gerais
Rio Grande do Sul
Paraná
Amazonas
Sergipe
Rio de Janeiro
São Paulo (RMSP)
Rio Grande do Norte
Ceará
Mato Grosso
Bahia
Goiás
Paraíba
Pará
Mato Grosso do Sul
Santa Catarina
Pernambuco
Espírito Santo
Maranhão
Bauru
43%
31%
26% Unit Swap
Financial Swap
Cash
*RMSP – Metropolitan Region of São Paulo
Land Bank www.rossiresidencial.com.br
74% acquired through swap
Regional diversificationIncome Segment diversification
 Land bank diversified by region and product
 Total PSV of R$ 31.2 billion (R$ 22.1 billion Rossi’s
share)
40%
25%
12%
12%
8%
2%
Low income segment
From R$ 200 K to R$ 350 K
Commercial
Above R$ 500 K
From R$ 350 K to R$ 500 K
Lots
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17. 1616
Financial
Performance
Horizon Jardins | Aracaju – Sergipe
Sales success : 100% sold

18. Financial Highlights
www.rossiresidencial.com.br
 Net revenue reaches R$ 749 million, 16% higher than in 3Q10;
9M11: R$ 2.2 billion, 21% more than 9M10;
 Gross income totals R$ 226 million, 18% up on 3Q10, with a gross margin of 30%;
9M11: R$ 672 million, with Gross Margin of 31,2%;
 EBITDA (¹) totals R$ 149 million with an EBITDA margin of 20%;
9M11: R$ 419 milhões, with EBITDA Margin of 19%;
 Net income (¹) comes to R$ 96 million;
9M11: R$ 268 million;
 Cash burn (²) falls to R$ 93 million
(1) Adjusted for non-recurring selling expenses
(2) Cash burn excludes non-recurring expenses and the stock buyback program
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19. 132 149
382
419
3Q10 3Q11 9Q10 9M11
13%
10%
644
749
1,784
2,157
3Q10 3Q11 9M10 9M11
16%
21%
93 96
259 268
3Q10 3Q11 9M10 9M11
3%
3%
191
226
557
672
3Q10 3Q11 9M10 9M11
18%
21%
Net Revenue (R$ million) Gross Income (R$ million) and Gross Margin (%)
Financial Highlights
www.rossiresidencial.com.br
EBITDA ¹ (R$ million) and EBITDA Margin (%) Net Income ¹ (R$ million) and Net Margin (%)
(¹) Adjusted by non recurring expenses related to “Rossi 30 anos”
30%
31% 31%
30%
21% 19%
21% 20% 14% 11%
15% 12%
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20. 32%
31%
31%
30% 30%
31%
31% 31% 31%
LTM 3Q09 LTM 4Q09 LTM 1Q10 LTM 2Q10 LTM 3Q10 LTM 4Q10 LTM 1Q11 LTM 2Q11 LTM 3Q11
www.rossiresidencial.com.br
Consistent Margins
Gross Margin (%)
Ebitda Margin (%)
20%
22%
23% 23%
22% 22% 22%
21% 21%
LTM 3Q09 LTM 4Q09 LTM 1Q10 LTM 2Q10 LTM 3Q10 LTM 4Q10 LTM 1Q11 LTM 2Q11 LTM 3Q11
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21. Cash Burn
www.rossiresidencial.com.br
 Cash burn (¹) drops to R$ 93 million in 3Q11;
 In 9M11, cash burn came to R$385 million, 34% lower than in the first nine months of 2010;
178
213
195
266
94
198
93
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Total 9M10: R$ 586 MM
Total9M11: R$ 385 MM
20(1) Cash burn excludes non-recurring expenses and the stock buyback program

22. 32%
68%
Short term
Long term
79%
14%
6%
Construction Financing
Debentures
Working Capital
Debt Breakdown
Debt Profile
Debt
www.rossiresidencial.com.br
Amortization Schedule (without SFH) – R$ million
¹ including debentures with Caixa¹ Excluding debentures with Caixa
Debt
R$ million 3Q11 2Q11
Chg.
(%)
Short Term 1.029 964 7%
Construction financing 755 686 10%
Working capital 159 156 2%
Debentures 115 122 -6%
Long Term 2.212 2.069 7%
Construction financing 1.812 1.652 10%
Working capital 50 67 -25%
Debentures(¹) 350 350 0%
Total Gross Debt 3.240 3.033 7%
Cash position 1.403 1.307 7%
Net Debt 1.837 1.726 6%
Net Debt/Equity 66,1% 64,1% 2,0 p.p.
¹ Excludes CEF’s debentures that were classified as Real Estate Credit.
124
167
133
100
150
2011 2012 2013 2014 After 2015
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23. Equipe de RI
Thank You!
Cássio Elias Audi
CFO and IRO
Adriana Godinho
Investor Relations Manager
Ph. (55 11) 4058-2500
Gabriel Spera Borba
Investor Relations Analyst
Ph. (55 11) 4058-2502
Paula Oliveira
Investor Relations Analyst
Ph. (55 11) 4058-2503
ri@rossiresidencial.com.br
www.rossiresidencial.com.br/ir
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24. 2323
Q&A
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