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1Q09 ResultsCidade Paradiso (Nova Iguaçu, RJ)                                    May 2009
Managers Track-record 1999-2005                    2006                      2007                     2008                ...
1Q09 Highlights   1Q09 net profit of R$1.3mm (R$0.03 EPS) vs R$486.000 (R$0.01 EPS) in 1Q08   Initiatives were focused on ...
1Q09 Operational Highlights   In 1Q09 we continued to focus on reducing inventories without any new launches, whichlimited...
Sales Historical Trend                              Average Price Units Sold (R$)          326.292209.621                 ...
Inventory at Market Value & SoS                         Inventory at the                                                  ...
Inventory at Market Value ProfileInventory at Market Value - Construction Status     Inventory at Market Value - Average P...
Projects Delievery - Schedule                 Delivery Schedule (Units Sold and Inventory)1.600                           ...
Financing                               Total PSV                                                 Project Delivery -      ...
Financial Highlights 1Q09            Net Operating Revenue (R$ 000)                            Gross Profit (R$ 000) & Gro...
Results to be Recognized   1Q09 revenue to be recognized of R$285mm and results to be recognized of R$92mm (32,2% margin) ...
Capital Structure / Liquidity1Q09 liquidity update: cash position of R$39mm and corporate debt of R$19mm     Cash burn was...
Land Bank (To Be Launched)                                                                 Average Price            Total ...
Segments of Operation      Launches 2008      Land Bank                             8%                                   9...
Launches to Date                                                                              Launched                    ...
IR Contact             Investors Relations               Rogério Furtado                CFO and IR Officer                ...
DisclaimerThis presentation contains certain statements that are neither reported financial results or other historical in...
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1 q09 presentation

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1 q09 presentation

  1. 1. 1Q09 ResultsCidade Paradiso (Nova Iguaçu, RJ) May 2009
  2. 2. Managers Track-record 1999-2005 2006 2007 2008 1S09•Group CR2 is •Sector in expansion •Sector gains access •Anticipating the •Modest recovery in founded in 1999 mode to capital markets impact from the economic activity, global financial but visibility still•Activities in Credit •Raised R$60mm via •IPO raises R$307mm crisis, the pace of limited and Real Estate fund structure new launches is reduced starting in •Lower interest rates •Business model 1H08•Brazilian real estate •Banks increase enables flexibility to and controlled sector still in its credit availability to accelerate when inflation are infancy construction finance there is ample liquity •Priorities are to positives and home buyers secure financing for projects, preserve •Government•CR2 launches 11 •Total PSV launched cash projects with PSV •CR2 of R$774mm, and housing package to worth R$218mm Empreendimentos CR2’s share of provide Imobiliários SA is R$535mm •Total PSV launched oppotunitites founded of R$347mm, and CR2’s share of •Focus remains in the R$293mm economic segment •Shift in target market from (92% of land bank) high/middle income •Launches consistent to economic with initiative to •Initiatives to segment focus on the preserve cash and economic segment, sell inventories are and to expand into showing results the São Paulo market 2
  3. 3. 1Q09 Highlights 1Q09 net profit of R$1.3mm (R$0.03 EPS) vs R$486.000 (R$0.01 EPS) in 1Q08 Initiatives were focused on preserving the cash position: We did not carry out any launches in the quarter, and focused on selling inventories We adjusted construction outlays to match disbursements from construction financing lines We accelerated the process of transferring home buyers to banks/CEF Drastic reduction in cash burn to R$5mm in 1Q09, from R$44mm in 4Q08, finished 1Q09 withR$39mm cash on the balance sheet Corporate debt was R$19mm and construction financing (SFH) was R$68mm, which equate tolow leverage levels with net debt/equity = 13% After the launch of the housing program Minha Casa Minha Vida, we achieved our goal to signan additional 5 contracts with Caixa Econômica Federal (CEF), taking the total to 7 projects orR$281mm Well positioned to benefit from the housing program Minha Casa Minha Vida, given exposureto the economic segment and know-how to operate with CEF—the preliminary results are positive 3
  4. 4. 1Q09 Operational Highlights In 1Q09 we continued to focus on reducing inventories without any new launches, whichlimited the speed of sales 1Q09 contracted sales were better than 4Q08 reaching R$24mm (+55% Q/Q) and CR2’s shareat R$19mm (+52% Q/Q) Sales in April already benefited from the housing program Minha Casa Minha Vida, presentingan improvement >50% vs the average monthly rate in 1Q09 Contracted Sales (R$ mm) 37,2 10,0 24,0 4,9 15,5 27,2 3,0 19,1 12,6 1Q08 4Q08 1Q09 CR2 Partners 4
  5. 5. Sales Historical Trend Average Price Units Sold (R$) 326.292209.621 204.762 166.422 164.587 168.923 116.630 112.891 101.154 87.331 2006 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 5
  6. 6. Inventory at Market Value & SoS Inventory at the Contracted Period Launches (CR2s Inventory at the Beginning of Sales (CR2s SoS(R$ mm) share) End of Period Period share) 2006 0,0 33,4 11,9 21,5 35,7% 1Q07 21,5 62,4 31,5 52,4 37,6% 2Q07 52,4 27,0 18,5 60,8 23,3% 3Q07 60,8 63,1 32,4 91,6 26,1% 4Q07 91,6 183,9 59,2 216,3 21,5% 1Q08 216,3 47,9 27,2 237,0 10,3% 2Q08 237,0 131,3 144,4 223,9 39,2% 3Q08 223,9 113,9 67,6 270,2 20,0% 4Q08 270,2 0,0 12,6 257,7 4,6% 1Q09 257,7 0,0 19,1 238,6 7,4%SOS (CR2’s share): *contracted sales in the period / (inventories at the beginning of the period + launched PSV in the period net of physical exchanges)] Presents a downward trend 1Q09 = 64% of Shareholders’ Equity 6
  7. 7. Inventory at Market Value ProfileInventory at Market Value - Construction Status Inventory at Market Value - Average Price 4% 11% 22% Completed R$350k - R$500k Under Construction R$220k - R$350k 29% 60% Construction not < R$220k Started 74% 100% of inventory eligible to SFH financing 7
  8. 8. Projects Delievery - Schedule Delivery Schedule (Units Sold and Inventory)1.600 1.4841.4001.200 1.0211.000 952 909 800 750 763 600 400 58% 90% 74% 82% 200 51% 53% 172 - 49% 2T09 3T09 4T09 1T10 2T10 3T10 4T10 Sold Inventory 7 projects to be concluded in 2009 with total PSV of R$376mm and CR2’s share at R$261mm 71% of the 2,680 units to be delivered in 2009 already sold 8
  9. 9. Financing Total PSV Project Delivery - Project Bank Type of Funding Financing Status Line of Credit (R$ MM) ForecastGreen Park 3000/4000 55,7 Itaú "Repasse nas Chaves" Dec-2008 Contract Signed - transfer of credit in progressVerano I 130,0 Itaú "Plano Empresário" Aug-2009 Contract Signed - financing kicked-in ItaúVerano II 105,0 Itaú "Plano Empresário" Mar-2010 Contract Signed - financing kicked-in R$250 milionParque das Águas 140,0 Itaú "Plano Empresário" Mai-2010 Contract Signed - financing kicked-inParque das Águas 140,0 Unibanco "Repasse na Planta" Dec-2010 Contract Signed - transfer of credit in progress UnibancoSplendore Valqueire I 15,9 Unibanco "Repasse na Planta" Jul-2009 Contract Signed - transfer of credit in progress R$29 milion of PSVVillaggio Del Mare 58,9 Santander "Plano Empresário" Jul-2009 Contract Signed - financing kicked-in SantanderBarra Allegro 41,5 Santander "Plano Empresário" Dec-2009 Contract Signed - financing kicked-in R$100 milion of PSVVerano III 67,0 Bradesco "Plano Empresário" Mar-2011 Contract in Process - To be signed in May/June Bradesco R$90 milionFelicittá 29,3 Real "Plano Empresário" Apr-2010 Contract in Process - To be signed in May/June Real R$12 milionVia Parque 4,9 CEF "Repasse nas Chaves" Mar-2008 Contract Signed - transfer of credit in progressMirante Bonsucesso 28,4 CEF "Crédito Associativo" Mai-2009 Contract Signed - financing kicked-inTop Life Itamaraty 43,0 CEF "Crédito Associativo" Feb-2010 Contract Signed - disbursements in May/JuneVillagio do Campo 65,0 CEF "Crédito Associativo" Jun-Dec 2009 Contract Signed - disbursements in May/June CEF(1)Premium Cpo. Grande 47,0 CEF "Crédito Associativo" Jun-2010 Contract Signed - disbursements in May/June R$ 2,5 bilion of PSVAcqua Park 67,3 CEF "Crédito Associativo" Jul-2010 Contract Signed - disbursements in May/JuneTop Life Park 25,3 CEF "Crédito Associativo" Jul-2010 Contract Signed - disbursements in May/JuneJardim Paradiso 36,8 CEF "Crédito Associativo" Dec-2009 Letter of Credit - Under engineering analysis at CEF(1) Commitment signed with CEF in July 2007. The R$2.5 billion will fully cover Cidade Paradiso. CEF update: First disbursements in Crédito Associativo Total of 7 projects financed by CEF, with a total PSV of R$281mm and CR2’s share at R$239mm Know-how and good relationship 9
  10. 10. Financial Highlights 1Q09 Net Operating Revenue (R$ 000) Gross Profit (R$ 000) & Gross Profit Margin60.000 12.000 27,8% 30,0% 51.68250.000 9.732 10.000 25,0%40.000 8.000 7.573 20,0%30.000 27.241 6.000 18,8% 15,0%20.000 4.000 10,0%10.000 2.000 5,0% 0 0 0,0% 1Q08 1Q09 1Q08 1Q09 EBITDA (R$ 000) & EBITDA Margin Net Profit (R$ 000) & Profit Margin 1Q08 1Q09 1.400 1.286 3,0% 0 0,0% 1.200 2,5% -1,8% -1,0% 1.000 2,5% -500 -2,0% 1,8% 2,0% 800 -3,0%-1.000 1,5% -927 -4,0% 600 486-1.500 -5,0% 1,0% 400 -6,0%-2.000 200 0,5% -7,0% -8,0%-2.500 0 0,0% -2.506 -9,0% -9,2% 1Q08 1Q09-3.000 -10,0% 10
  11. 11. Results to be Recognized 1Q09 revenue to be recognized of R$285mm and results to be recognized of R$92mm (32,2% margin) On and off balance sheet receivables totalled R$527mm in 1Q09, of which R$151mm are short-termRevenues and Results to be Recognized (R$ 000) 1Q09 4Q08 4Q07Revenues to be Recognized 284.746 311.074 195.918Cost of Units Sold to be Recognized 193.016 206.360 139.923Gross Profit to be Recognized 91.730 104.714 55.995Gross Margin to be Recognized 32,2% 33,7% 28,6% 11
  12. 12. Capital Structure / Liquidity1Q09 liquidity update: cash position of R$39mm and corporate debt of R$19mm Cash burn was reduced to R$5mm in 1Q09, including a positive cash flow in MarchImportant progress in disbursements of financing lines: SFH disbursements were R$27mm in 1Q09, almost double the amount in 4Q08, reaching R$68mm on the balance sheet, we still have R$170mm in contracted SFH financing to be disbursed First disbursement of the Crédito Associativo from CEF (R$6mm from one project) After the launch of Minha Casa Minha Vida we signed another 5 contracts with CEF, bringing the total to R$281mm Optimization of the transfer of receivables from completed units, which totalled R$28mm in 1Q09Low leverage with a net debt/equity of 13% (including SFH financing) 12
  13. 13. Land Bank (To Be Launched) Average Price Total PSV CR2s PSV Development City (State) Segment Units % CR2 (R$ 000) (R$ MM) (R$ MM) Jardim Paradiso II – III Nova Iguaçu (RJ) Economic 68 1.283 87,0 80,9 93% Javri Santo André (SP) Economic 174 190 33,0 28,4 86% Colônia Paraíso S. J. Campos (SP) Economic 82 392 32,0 27,5 86% Manaú 2 Guarulhos (SP) Economic 81 420 34,0 29,2 86% Splendore Valqueire II Rio de Janeiro (RJ) Economic 156 160 25,0 20,0 80%Sta. Cecília – Madureira I Nova Iguaçu (RJ) Economic 50 1.613 80,0 64,0 80% Barrartes Rio de Janeiro (RJ) Commercial 237 507 120,0 84,0 70%Sta. Cecília – Madureira II Nova Iguaçu (RJ) Economic 50 1.612 80,0 64,0 80% Pq. das Águas II São Gonçalo (RJ) Economic 162 1.152 187,0 149,3 80% Pq. das Águas III São Gonçalo (RJ) Economic 171 492 84,0 67,2 80% Pq. das Águas IV São Gonçalo (RJ) Economic 89 942 84,0 67,2 80% Warehouse ABEAR Rio de Janeiro (RJ) Commercial 591 389 230,0 161,0 70% Cidade Paradiso Nova Iguaçu (RJ) Economic 72 30.183 2.180,0 2.180,0 100% Total 83 39.335 3.256,0 3.022,7 93% 13
  14. 14. Segments of Operation Launches 2008 Land Bank 8% 92% 100% Economic Commercial Economic 14
  15. 15. Launches to Date Launched Total PSV CR2s PSV Development City (State) Launch Date Segment Sold Units % Sold % CR2 Units (R$ MM) (R$ MM)Green Park 3000/4000 Barra (RJ) mar/sep 06 Middle-Income 240 201 84% 55,7 33,4 60% Verano I Barra (RJ) mar/sep/oct 07 Middle-Income 395 309 78% 130,0 78,0 60% Villaggio Del Mare Recreio (RJ) may/07 Middle-Income 120 103 86% 58,9 30,6 52%Splendore Valqueire I V. Valqueire (RJ) jul/07 Economic 120 114 95% 15,9 12,7 80% Verano II Barra (RJ) sep/07 Middle-Income 346 214 62% 105,0 63,0 60% Parque das Águas I S. Gonçalo (RJ) oct/07 Economic 1.058 506 48% 140,0 112,0 80% Verano III Barra (RJ) oct/07 Middle-Income 172 84 49% 67,0 40,2 60% Barra Trade Barra (RJ) nov/07 Comercial 5 0 0% 28,0 19,6 70% Barra Allegro Barra (RJ) nov/07 Middle-Income 144 109 76% 41,5 29,0 70% Mirante Bonsucesso Guarulhos (SP) mar/08 Economic 368 360 98% 28,4 24,4 86% Via Parque Caxias (RJ) mar/08 Economic 99 60 61% 4,9 3,2 66% Felicittá Jacarepaguá (RJ) mar/08 Economic 230 217 95% 29,3 20,5 70% Top Life Itamaraty Santo André (SP) apr/08 Economic 417 412 99% 43,0 37,0 86% Villagio do Campo Campo Grande (RJ) jun/08 Economic 999 670 67% 65,0 52,0 80%Premium Cpo. Grande Campo Grande (RJ) jun/08 Economic 196 144 73% 47,0 42,3 90% Acqua Park Guarulhos (SP) jul/08 Economic 747 304 41% 67,3 57,9 86% Top Life Park Santo André (SP) jul/08 Economic 200 196 98% 25,3 21,8 86% Jardim Paradiso I Nova Iguacu (RJ) sep/08 Economic 534 228 43% 36,8 34,2 93%Cummulative Total 6.390 4.231 66% 989,0 712,0 72% In 2006* 240 43 55,7 33,4 60% In 2007* 2.360 1.126 586,3 385,2 66% In 2008* 3.790 2.920 347,0 293,4 85% In 2009* 0 142 0,0 0,0 0% 15
  16. 16. IR Contact Investors Relations Rogério Furtado CFO and IR Officer Daniel Grozdea IR Manager www.cr2.com.br/ir phone: (21) 3095-4600 (21) 3031-4600 16
  17. 17. DisclaimerThis presentation contains certain statements that are neither reported financial results or other historical information. Theyare forward-looking statements.Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materiallyfrom those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that arebeyond CR2’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior ofother market participants, the actions of governmental regulators, the Companys ability to continue to obtain sufficientfinancing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Companyoperates or in economic or technological trends or conditions, inflation and consumer confidence, on a global, regional ornational basis.Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date ofthis document. CR2 does not undertake any obligation to publicly release any revisions to these forward looking statementsto reflect events or circumstances after the date of this presentation. 17

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