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Presentation of Rossi´s Action Plan towards the Low Income Segment
- 3. Target public of the product Rossi: qualified, prepared and active Why we believe in this market Products Actions already in progress and targets Final conclusions
- 4. Target public of the product Rossi: qualified, prepared and active Why we believe in this market Products Actions already in progress and targets Final conclusions
- 5. TARGET PUBLIC OF THE PRODUCT Property value from R$46,000 to R$120,000 Monthly payment from R$183 during construction Monthly payment from R$481 after delivery Families with income ranging from 4 to 10 minimum wages
- 6. Target public of the product Rossi: qualified, prepared and active Why we believe in this market Products Actions already in progress and targets Final conclusions
- 7. MACROECONOMIC SCENARIO Economic stability Foreign investment Falling interest rates Need for job creation Need for higher GDP growth
- 8. Higher GDP growth combined with falling interest rates 2003 MACROECONOMIC SCENARIO 2004 2005 2006 2007E 2008E 2009E 2010E 23.50% 16.40% 19% 12,75% 11% 10% 9% 8% 4.9% 0.5% 2.3% 3.3% 4.1% 4.6% 4.8% 4.8% SELIC rate GDP growth
- 9. DECLINING INTEREST RATES AND LENGTHENING OF FINANCING TERMS To finance construction To finance the client Lengthening of terms from 10 to 20 years
- 10. SIZE OF MARKET Potential Demand in Brazil Highly dependent on the level of interest rates and on financing terms 110.000 13% 10 1.700 35% 4.800 110.000 8% 20 900 35% 2.600 2005 Scenario 2007 Forecast Potential Demand +7 million families +148% increment 24% 10% 20072005 Average Value R$ Real Mortgage Rates (p.a.) Term (years) Monthly Payment (R$) Percentage of Income Monthly Income (R$) % of families with the potential to buy
- 12. Target public of the product Rossi: qualified, prepared and active Why we believe in this market Products Actions already in progress and targets Final conclusions
- 13. EXPERIENCE Launched in 1992 Apartments with areas from 56 to 85 m² 4 units per floor 2 to 4 bedrooms 4 standardized designs with differentiated facades and common areas 13,438 units delivered
- 14. EXPERIENCE Launched in 1996 Apartments with areas from 45 to 59 m² 6 or 8 units per floor 2 to 3 bedrooms 4 standardized designs with differentiated facades and common areas 5,620 units delivered
- 15. EXPERIENCE Launched in 1999 Apartments with areas from 46 to 105 m² Sale prices from R$46,000 to R$120,000 2 to 3 bedrooms 8 standardized designs 2,142 units delivered Planned neighborhood
- 16. DECENTRALIZED MANAGEMENT MODEL Proven Management Model with Track Record of Success Decentralized operations: 6 regional offices Centralized financial control and management Partnerships with local developers More than 30 executives with at least 15 years experience in the real estate and construction industries
- 17. GEOGRAPHICAL DIVERSIFICATION 6 regional offices: Porto Alegre, São Paulo, Campinas, Rio de Janeiro, Belo Horizonte and Salvador Operations in 30 cities in 11 states across Brazil
- 18. MANAGEMENT SOFTWARE (SAP) IMPLEMENTED 7 YEARS AGO 400 work stations on the network
- 19. CUSTOMER SERVICE CENTER 30,000 customers 8,000 customers served each month
- 20. HIGHLY ADVANCED ENGINEERING SAP Designs Procurement Processes Development of people Development of products Management of knowledge
- 21. HIGHLY ADVANCED ENGINEERING Focus on processes Example: Rossi Construction System Economy Segment - Houses 1 2 3 4 5
- 22. HIGHLY ADVANCED ENGINEERING Example: Rossi Construction System Economy Segment - Houses Focus on processes 1 2 3 4 5
- 23. HIGHLY ADVANCED ENGINEERING Focus on processes Example: Rossi Construction System Economy Segment - Houses 1 2 3 4 5
- 24. HIGHLY ADVANCED ENGINEERING Focus on processes 1 2 3 4 5 6
- 25. HIGHLY ADVANCED ENGINEERING Example: Rossi Construction System Economy Segment - Houses Focus on processes
- 26. HIGHLY ADVANCED ENGINEERING Focus on processes Example: Rossi Construction System Economy Segment - Houses
- 27. Tools Scaffold Spacers Mobile and covered concrete mixer Short timetable – land moving is still going on, but other services have already begun Electrical blocks Steel for masonry Access Concrete blocks piled correctly and near the application site Energy Water Grout Bays assembled nearby with aggregates HIGHLY ADVANCED ENGINEERING – LOGISTICS
- 28. HIGHLY ADVANCED ENGINEERING Example: Rossi Construction System Economy Segment – Residential Squares Focus on processes 1 2
- 29. HIGHLY ADVANCED ENGINEERING Example: Rossi Construction System Economy Segment – Residential Squares Focus on processes
- 30. HIGHLY ADVANCED ENGINEERING Example: Rossi Construction System Economy Segment – Residential Squares Focus on processes
- 31. EASY ACCESS TO FINANCING R$3.0 billion Financing Agreements with Commercial Banks: 33,000 units Annual rate of 9% + TR (Reference Rate) and 20 years to pay
- 32. EXPERIENCE IN CREDIT ANALYSIS Experience since launch of Plano 100 Continuous training of real estate brokerages Analysis of payment capacity vs. analysis of income Analysis of payment capacity by each product Analysis of payment capacity by financial agent
- 33. Villa Natura – SP Condominium buildings Casas Brasileiras – Campinas Condominiums of high-end Homes Orizzonte – Niterói Retrofit Iguatemi Corporate – Porto Alegre Commercial - Triple A EXPERTISE IN PRODUCT DEVELOPMENT Development of expertise in a variety of segments (cities and price ranges)
- 34. EXPERTISE IN PRODUCT DEVELOPMENT Development expertise in a variety of segments (cities and price ranges) Example: Elevador do Praça Development based on “Target Cost” Experience in developing products on a mass scale Market research
- 35. Target public of the product Rossi: qualified, prepared and active Why we believe in this market Products Actions already in progress and targets Final conclusions
- 38. VILLA FLORA
- 39. Units with area from 46 to 115 m² Units starting at R$45,000 Monthly payments from R$183 during construction Monthly payments from R$ 481 after delivery VILLA FLORA
- 47. VILLA FLORA - SOROCABA
- 49. RESIDENTIAL SQUARES – SÃO JOSÉ DOS CAMPOS (SP)
- 50. RESIDENTIAL SQUARES – CANOAS (RS)
- 51. RESIDENTIAL SQUARES - PORTO ALEGRE (RS)
- 52. DIFFERENTIALS OF RESIDENTIAL SQUARES Architectural Design Quality Finishings Landscaping Sustainability
- 53. Sustainability program with 3 pillars SUSTAINABILITY DESIGN CONSTRUCTION USE
- 54. CONCEPTS Optimization of spaces Selection of area | Installation | Treatment of external spaces Minimization of energy consumption Orientation | Form/design| Openings/closures Preference for environmental materials Protection and conservation of water Improvements in quality of internal environments Optimization of construction, operational and maintenance processes Longevity Adaptability, durability, diversity Creation/identification of value Relationship with community/social responsibility
- 55. The idealist says... The pessimist says… We believe… learning curve economies of scale scarcity of resources stricter legislation “UNDISPUTABLE” REGIONS LIFE CYCLE COST INITIALCOST Equal Equal < > > < EXPECTATIONS REGARDING SUSTAINABLE PROJECTS
- 56. Design Preliminary study Documentation and contract Construction Use and operation Optimization of the site’s potential Impact on performance Increase in cost/difficulty of implementation Minimization of energy consumption Preference for environmental materials/products Water conservation Quality of internal environment Construction practices Operation and retrofit practices STRATEGIES VS. LIFE CYCLE PHASE
- 57. $ ** (will implement) ****** Ease of execution and maintenance $ * (will implement) ****** Sensitizing users regarding water conservation ** (will implement) ** * (will implement) * (will implement) * (will implement) Implementation period (Rossi reality) ** ** *** *** *** Ease of implementation $$*** Use of measurement by sector $$** Use of alternative sources $*** Reduce water consumption for landscaping $$*** Reduce water consumption at points of use $*** Limit flow (pressure) at points of use Investment (other) Benefits Environmental effectiveness Practices and strategies WATER
- 58. RESIDENTIAL SQUARES Units with areas from 50 to 82 m² Units starting from R$65,000 Monthly payment from R$252 during construction Monthly payment from R$662 after delivery
- 60. FACADE
- 61. LEISURE AREAS
- 62. MODEL
- 63. LAUNCH
- 65. VERTICAL
- 66. Country club concept Rationalization of spaces Location VERTICAL - DIFFERENTIALS
- 67. Units with areas from 46 to 62 m² Units starting from R$80,500 Monthly payment from R$312 during construction Monthly payment from R$821 after delivery VERTICAL
- 68. LAND ACQUISITION price of land x common areas x construction cost x size of unit %lessexpensiveSquarevs.Vertical 15% 10% 5% 0% -5% -10% -15% -20% 2 bdm: 48m2 3 bdm: 60m2 3 bdm: 64m2
- 69. Target public of the product Rossi: qualified, prepared and active Why we believe in this market Products Actions already in progress and targets Final conclusions
- 70. LAND BANK – POTENTIAL UNITS Villa Flora 16,036 Residential Squares 10,380 Vertical 2,144 TOTAL: 28,560 = R$ 2.6 billion
- 71. ANNUAL GENERAL SALES VALUE R$ 1,920 to R$ 2,160 Economy Segment 2008 R$ 450 R$ 1,600 to R$ 1,800 2007 R$ 288 2009 R$ 720 2010 R$ 1,080 2011 R$ 1,350 Amounts in million
- 73. Target public of the product Rossi: qualified, prepared and active Why we believe in this market Products Actions already in progress and targets Final conclusions