2. Disclaimer
This presentation does not constitute an offer, or invitation, or solicitation of an offer to subscribe for or purchase
any securities neither does this presentation nor anything contained herein form the basis to any contract or
commitment whatsoever.
The material that follows contains general business information about LPS Brasil – Consultoria de Imóveis S.A
(“LPS”) as of June 30th, 2012. It is not intended to be relied upon as advice to potential investors. The information
does not purport to be complete and is in summary form. No reliance should be placed on the accuracy,
fairness, or completeness of the information presented herein and no representation or warranty, express or
implied, is made concerning the accuracy, fairness, or completeness of the information presented herein.
This presentation contains statements that are forward-looking and are only predictions, not guarantees of
future performance. Investors are warned that these forward-looking statements are and will be subject to
many risks, uncertainties, and factors related to the operations and business environments of LPS and its
subsidiaries such as competitive pressures, the performance of the Brazilian economy and the industry, changes
on market conditions, among other factors disclosed in LPS filed disclosure documents. Such risks may cause the
actual results of the companies to be materially different from any future results expressed or implied in such
forward-looking statements.
LPS believes that based on information currently available to LPS management, the expectations and
assumptions reflected in the forward-looking statements are reasonable. Lastly, LPS expressly refuses any duty to
update any of the forward-looking statements contained herein.
2
4. Achievements
Top Imobiliário Award
Considered the main award of the real estate industry in Brazil;
Lopes won every Top Imobiliário, since its first edition in 1993.
Master Imobiliário Award
Award organized by Sindicato da Habitação de São Paulo (Secovi-SP) and Federação Internacional das
Profissões Imobiliárias, suported by Grupo Estado
Lopes was awarded in the segment “Institucional” by 2011 Annual Report of the Brazilian Real Estate Market
Ranking Valor 1000
Listed by Valor Econômico as one of the 1000 largest business groups in Brazil;
Highlighted as the 20th higher net margin among all groups;
8th place in value generation among service companies.
IG/ Insper Award
Assertive M&A strategy, expanding the business to other regions of the country;
Lopes was considered the largest company in real estate brokerage and consulting in Brazil, in the last five years.
VII Award Relatório Bancário
CrediPronto! was awarded in the segment “Best Online File Management”
Highlighted for the efficiency in the mortgage approval 4
5. The Brokerage Market Has No Other Company With Our History
and Track Record
Launch and sell of 14
office buildings at Av.
Paulista
Mr. Francisco Lopes
Launch and sell of 11 Introduction of the
initiates its activities
office buildings at the Faria concept of condominium
intermediating
Lima region clubs
properties
Creation of the launching First “Top Imobiliário”
system with sales stands award, in 1993 – Largest
and marketing materials, Brokerage Company
attracting customers
First TV 00´s
specially during weekends
advertisement for
a real estate
development Becomes reference in real
estate launchings and 90´s
presents its new logo
80´s
70´s
60´s
50´s
Lopes becomes an important player at
40´s the segment of gated communities
1935 Identification of Marginal Triples in size in a decade,
Pinheiros as an attractive strengthening its leadership
area and launch one of
Start of long term Wins its 16th consecutive
the first buildings in the
partnership with “Top Imobiliário”
region
The company’s first Gomes de Almeida Lopes’ IPO
Start up of sales of hotel
logo Fernandez (Gafisa) Lopes starts its geographic expansion
condominium (Flats)
Launch one of the process
Partner of Grupo Espírito
first buildings under Lopes’ website become leader on real
Santo in selling one of the
the condominium state market
largest launching in Lisboa:
concept Joint Venture with Itaú Bank in order to
Parque dos Príncipes
create CrediPronto, our mortgage
company.
Lopes’ follow-on 5
6. LPS Brasil
Investment Highlights
Asset Light CrediPronto!
Services company Mortgage company
Low execution risk with Highest %
growth of Brazil
Unique since 2009.
Top opportunity
management to consolidate
team of industry Unique position
in the primary the secondary
market Brazilian market
6
7. LPS Brasil: Unique Business Platform
Primary Market Secondary Market Mortgage Loan
+
Low, mid and high-income segments Focus on secondary market, with a Joint Venture with Banco Itaú to
unique model of own stores and a provide mortgage loans
network of licensed brokers
Growth through acquisitions
Top vehicle to Invest in Brazilian Real Estate Market.
7
8. Management Team
Top Management Team in Industry
Partners & Associates Partnership Program:
Summing up over 300 Over 33 Partners & Associates with stock Investment
and long term alignment with company
Years of Real Estate
Experience
Retention / Incentive tool for Top Performing
Employees
8
9. Asset Light
Service Based Business Model
Brokerage Mortgage
Business Business
Primary Secondary
Market Market
Immediate simple revenue
recognition No hard Assets
No hard Assets Inexistence of physical offices
(operates inside brokerage
Yearly Investment = Depreciation stores)
Easy short term adjustment in Mortgage portfolio generates
G&A, in case of a market recurring cashflow.
downturn.
9
10. Virtuous Cycle of the Business Model Creating Strong Barriers to Entry
Indisputable Sales Performance Leadership and Wide Range of Products
The Transactions closed in 2Q12, Leader in the primary market
of R$ 4.9 million, maintained the
same level as in 2Q11, despite of One-stop-shop: unique and
the retraction in sales of listed complete solution for the client
homebuilders. : unique platform to
CrediPronto! achieved 378 develop the secondary market
million in origination in the quarter : partnership with one
and R$1,3 billion in 2011. of the largest retail banks in the
Most visited website in the real world, Itaú Unibanco
estate sector: 15 million visitors in
2011.
Strong Established Base Retention of Talent
Leading, nationally recognized brand
Present in 12 Brazilian states and in the Federal Largest sales force: more than 16,000
District independent brokers
Extensive distribution channel Attracts and maintains its sales force
Database with more than 2 million clients
More than 413 homebuilder clients
10
11. Institutional Website
Visits on www.lopes.com.br
• Over 15 million unique visitors in
2011
•700 launches and more than 50
thousand units in the secondary
market.
• Mobile version compatible with
over 5 thousand kinds of cell phones
• First brokerage company to launch
an App for iPad
• Leader in presence in social
networks
The most visited Increased
Strong investment Higher sales
website in the real generation of
in online media conversion
estate market Leads
Source: Google Analytics,
11
14. Simple and Focused Business Model…
Lopes is exclusively focused on providing value-added real estate brokerage services to its client-
developers, with a permanent concern of avoiding conflicts of interest
Client-Developers Client-Buyers
How do we do
business?
Formal relationship through
agreements 2,129,180 prospects
Over 413 Clients included in our data base
Total Price
Revenue Recognition
$ 100 per Unit
How do we make money?1
$ 2.33
$ 3.08
$ 0.25
$ 10 $ 0.50
Developer
$ 5.22
Down- Gross $ 1.17
payment Commission $ 2.14
$ 0.97
Agents +
Managers
Net Commission Premium Contract Advisory Fee
1 Launches Lopes 2Q12 14
15. Market Intelligence
Launches by Market – Brazil - 2011
R$86 billion / 214k Units
Total Brazil
Brazil Mexico
Units launched: Units launched:
214 thousand/year ¹ 700 thousand/year ²
Brazil still represents a case for growth in the primary market.
Source: ¹ LPS Market Intelligence
15
² Infonavit, Softec and others (considering new homes from homebuilders and self construction).
16. Significant Creation of Demand
Demographic Bonus Population Pyramid (millions of people)
100%
80%
60%
40%
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Economically active population = 15 – 64 year-old
Dependence Index
Number of Families by Income Segment (millions)
2003 2008 Growth 2007 - 2030
Expansion of Class C (% of the population)
(8%) 78% 160% 233% 291% 433%
8% 11%
16%
28%
31.7
29.1 27.6
37% 21.8
24%
2007A
49% 15.5
11 2030E
27% 8.4
3.3 4.3
1.1 0.3 1.6
Classes A and B Class C Class D Class E
Up to R$1k to R$2k to R$4k to R$8k to Above
R$1k R$2k R$4k R$8k R$16k R$ 16k
The demographic bonus, combined with economic growth, will lead 12.5 and 6.5 million people to move up into the
middle (C) and upper middle/high (B/A) classes respectively, over the next 2 years. These families will certainly be
seeking better living conditions. 16
Source: IBGE, Bird, Febraban and FGV
17. National Footprint
Payment Payment
Region Region
(R$mm) (R$mm)
SÃO PAULO
Greenfield CAMPINAS
29.2 9.0
CE
RN
10.2
PE
RIO DE JANEIRO FEDERAL DISTRICT
Greenfield 12.0
BA
DF
GO
ESPÍRITO SANTO BAHIA
MG
ES 5.76 Greenfield
SP RJ
MINAS GERAIS PERNAMBUCO
PR
Greenfield 3.0
SC
5.5
RS
CEARÁ E RIO GRANDE
SUL
DO NORTE
15.1
2.4
35.7
Lopes tracks developers’ regional movements, consolidates its
position as the largest consulting and sales player
Source: Lopes RI
17
18. Sales Expertise in all Market Segments
HIGH Estilo Jardins – May/12 CASE
Location São Paulo/SP 100% sold.
Developer: MAC
Sales 104 un. – R$ 12,500/m²
Living Design - GR Cambui – May/12 CASE
MEDIUM-HIGH
Location Campinas/SP 85% sold.
Developer: GR Properties
Sales 60un. – R$9,000/m²
MEDIUM Figue – May/12 CASE
Location Santo André/SP 98% sold.
Developer: RFM Construtora
Sales 64 un. – R$ 5,800/m²
Certto Curuça Park – May/12 CASE
ECONOMIC
Location São Paulo/SP 97% sold.
Developer: Plano & Plano
Sales 298 un. – R$ 3,406/m²
Paulista Tower – Apr/12 CASE
BUSINESS UNITS
Location São Paulo/SP 100% sold.
Developer: Even
Sales 120 un. – R$ 20,000/m²
18
19. Transactions Closed – Primary Market
Transactions Closed – Primary Market
(R$ billion)
14.4 14.4
9.4
8.7
4.9
2.5
2006 2007 2008 2009 2010 2011
Took advantage of Listed Homebuilders growth through Capital raisings.
(equity + debt)
19
21. Evolution of Launches – Listed Homebuilders and Lopes
Evolution of Launches 2Q12
-37%
-22%
8.706
7.171
5.601
5.491
2Q11 2Q12 2Q11 2Q12
Listed Homebuilders Lopes
* Value based on the previous Listed Homebuilders - does not include Viver, JHSF and CR2 e CCDI.
21
24. Lopes’ Confidence Index (LCI)
Lopes is the first company to create a Real Estate Consumer Confidence Index.
Lopes’ Confidence Index (LCI)
149,8
134,8
118,0 119,8
100,0
82,0
jan/09
Jan-09
Jan-10
Jan-11
Jan-12
May-09
Oct-09
May-10
Oct-10
May-11
Oct-11
May-12
Mar-09
Apr-09
Jun-09
Aug-09
Nov-09
Mar-10
Apr-10
Jun-10
Aug-10
Nov-10
Mar-11
Apr-11
Jun-11
Aug-11
Nov-11
Mar-12
Apr-12
Jun-12
Feb-09
Jul-09
Sep-09
Dec-09
Feb-10
Jul-10
Sep-10
Dec-10
Feb-11
Sep-11
Dec-11
Feb-12
Jul-12
Expectation Index Lopes' Confidence Index Present Situation Index
Lopes’ Confidence Index intend to measure clients confidence, so Lopes can follow and anticipate, in the short term,
housing purchase tendency.
The sample has 581 interviews, with Grande São Paulo resident clients, which contacted Lopes in the last 3 months and
are interested in purchasing a new home.
Source: Lopes Market Intelligence 24
26. HABITCASA: Focus on Low Income Segment
Focus on Low Income Segment
Units up to R$ 300 thousand
The Habitcasa brand is applied in all Lopes’ markets
26
27. Transactions Closed by Price Segment – Primary and Secondary Markets
Transactions Closed
R$ 4,957 million R$ 4,902 million
2Q11 2Q12
10% 8%
32% 37%
31%
35%
23%
24%
Number of Transactions Closed
17,125 units 15,072 units
2Q11 2Q12
9%
8%
15% 34% 15%
41%
35%
43%
27
29. Pronto!: A Natural Consolidator
Well Defined Acquisition Model with a Successful Track
Unique Platform Poised for Growth
Record
Present in 12 states and the Federal Acquisition strategy:
District
– Companies with expertise in their regional markets
– Covers 91% of the Brazilian GDP – Companies with limited access to capital
– Over 50 own stores – Well positioned in relevant markets
– 150 licensed brokers – Widespread network
– Strong presence in São Paulo
and Rio de Janeiro
Appreciation and alignment of interests
– Earn-out
Unique one-stop-shop business model – 51% ownership stake
Solid client base
Successful acquisitions through the years
Strong internet presence
– 19 acquisitions since July 2010 focused on the
Diversified products in the portfolio secondary market
– Benchmark for future partners
– Accretion
Natural Consolidator
Potential synergies:
– Scale and reach: network effect
– Access to mortgage financing
– Expertise of LPS Brasil management
29
30. Pronto!
Acquisitions*
Payment Payment
Company Company
( R$ mm) ( R$ mm)
7.1 8.41
2.6 12.2
11.7 4.9
17.3 24.3
25.6 15.0
15.5 10.0
20.9 6.6
Pronto has 200 stores in 12 States + Federal District : 50 owned stores and
150 licensed brokers
30
* Average of 40% in downpayment and 60% in earn outs linked performance
31. Transactions Closed Historical in the Secondary Market
Transactions Closed – Secondary Market
( R$ billion)
21%
3.8
11%
7% 8%
7% 6%
1.3
0.7 0.6
0.3 0.3
2006 2007 2008 2009 2010 2011
Secondary Market Sales over total Secondary Market
Transactions Closed Transactions Closed
Strong growth of Secondary Market in our transactions closed.
2Q12 secondary sales reached 25% of total sales (R$1.2 billion)
.
31
33. Mortgage Market
Mortgage Market as a % of GDP
88%
81%
48%
42%
38%
19%
11% 11%
6% 5%
2% 2%
UK USA GERMANY SOUTH FRANCE CHILE MEXICO CHINA INDIA BRAZIL RUSSIA ARGENTINA
AFRICA
Source: Goldman Sachs, Abecip, BCB
33
34. Market Potential for Real Estate Financing
Growth Drivers Quantitative Housing Shortage (millions of homes)
Housing deficit
– 7.2 million houses (2009) 7.9
Incipient mortgage loan market 6.7
6.3
5.8
Declining interest rates 5.4
Rising employees’ income
Growing availability of long-term funding
Increasing secondary market financing
Increasing family turnover
1991 2000 2006 2007 2008
Mortgage Loan Access (% by Social Class)2 Family Turnover3
9.0 – 10.0x
7.7%
5.0%
4.0x
3.0%
1.7% 1.8x
Classes A and B Class C Class D Class E G-7 Mexico Brazil
Source: Bacen and ABECIP
Notes:
1 Data from 2006, except for Brazil (2009)
2 FGV’s Center for Social Studies, 2010
3 Represents the number of times a family moves to a different house during their lifetime. Source: Credit Suisse 34
35. Joint Venture Lopes Itaú
Lopes and Itaú created the first and biggest pure mortgage company of Brazil.
Direct and exclusive access to its Service excellence
customer database Competitive financing terms and
Seamlessly integrated operation with conditions
Lopes’ sales process, including an Speed and quality of processing
incentive compensation plan Experienced credit analysis
Lopes media exposure Successful exposure to the lending
business and in joint ventures
Leadership position
Management
in their respective High Value Brands
Excellence
markets
Strengthening of mortgage origination and other related services.
35
36. Differentiated Model: One-Stop-Shop
Secondary Market: a significant potential for origination Distinctive channel for clients in the secondary market
Focus
Over 50 own stores and 150 licensed real estate brokers in Over R$2.7 billion in financing
12 states and the Federal District
Relevance
Selective acquisitions to replicate the successful formula Incipient market in Brazil with huge expansion potential
used in the primary market
Growth
Potential
50% of CrediPronto! transactions are originated through
33% of Pronto!’s contracted sales are financed by Pronto!
Credipronto! Use of LPS Brasil’s platform and significant reduction in
CAPEX requirement
Synergies
Winning Model
36
37. CrediPronto!
Financed Volume Mortgages Portfolio
(R$ MM) (R$ MM)
2,775
378
15% 1,459%
328
178
2Q11 2Q12 Opening Portfolio Ending Portfolio
balance balance
Jan/10 jun/12
The Average Portfolio Balance in the 2Q12 was R$ 2.1 billion.
37
*Does not include amortization.
38. CrediPronto!
Accumulated Sales Volume *
(R$ MM)
2.775
2.397
2.153
1,956
1,698
1,461
1,219
1,013
854
727
591
474
385
217 291
CrediPronto! granted mortgage loans worth more than R$2.7 billion in its first years of operation
38
*Not including amortization / October, November and December are unaudited preliminary draft released on January 30th, 2012
39. Credipronto!: Unique Partnership to Capture Mortgage Loan Market
Potential
Business Highlights Innovative Real Estate Financing Process
+
Market Largest Private Bank
Leader in Brazil Assessment of Issuance of the Release of
Credit Analysis Legal Analysis
the Property Contract Resources
Until 3 2 3 5
24 hours working working working working
days days days days
Profit Sharing with limited credit risk
Leverage on LPS Brasil’s points of sale
Differentiated process of approval and release of funds Efficiency in Release of Credit
Unprecedented credit in the market
Evolution of Origination (base 100 = Jan-10)1 Ranking of Real estate Financing1Q12 (R$ mm)
3,0% 2,8% 3,1% 2,8% 3,0% 4,0%
2,4% 2,4% 6.037
1,9% 1,7%
1,4% 433 2,0% 6,2% de Market Share*
432,2
376 411 20% do Itaú
370
0,0%
245 241
1.896
177 -2,0%
168
378
209 198 209 1.389 1.311
179 189 -4,0% 1.019
100 145 147 144
125 305 147 25 7 6
1T10 2T10 3T10 4T10 1T11 2T11 3T11 4T11 1T12 2T12 -6,0% Caixa Itaú Bradesco Santander Banco do HSBC Banrisul Citibank Banese Poupex
Brasil
Credipronto! Mercado Market Share CDP! *Private players (excludes Caixa)
High Growth Potential – Real Estate Financing equals only 5% of Brazilian GDP2
1 ABECIP
2 Bacen
* Excluding Caixa 39
41. Transactions Closed
Transactions Closed Number of Transactions Closed
(R$ MM)
4,957 -1% 4,902
17,125
-12%
15,072
1,085 1,236 2.293
2.574
3,872 14,832
3,666 12,498
2Q11 2Q12 2Q11 2Q12
The Transactions Closed in 2Q12 maintained the same level of the same period the year
before, despite of the retraction of 19% in sales of listed homebuilders¹ in the primary market
¹ Value based on the previous Listed Homebuilders - does not include Viver, JHSF, CR2 and CCDI.
41
43. 2Q12 Financial Highlights
Net Revenue
126.7
Earn out Itaú 15.6 -2%
111.1 109.2
2Q11 2Q12
Net Income Attributable to Controlling
EBITDA*
Shareholders before IFRS
26.0% 39.7%
22.8%
38.7%
39.4 59.2
14.1 Earn out Itaú 15.1
Earn out Itaú +12% -4%
25.3 28.4
44.1 42.3
2Q11 2Q12
2Q11 2Q12
¹Shareholders of LPS Brasil through the LPSB3 share
*We consider the EBITDA, excluding other operating expenses (revenues), that considers IFRS non-cash, as the company performance indicator. 43
The 2Q11 margin does not consider Itaú Earn Out net of taxes.
44. 2Q12 Results
Results 2Q12 Before IFRS
(R$ thousand)
LAUNCHES PRONTO! CREDIPRONTO! CONSOLIDATED
Gross Service Revenue 90,211 28,965 5,974 125,150
Revenue from Real Estate Brokerage 86,586 28,965 5,974 121,525
Revenue to Accrue from Itaú Operations 3,625 - - 3,625
Earn Out - - - -
Net Operating Revenue 78,959 25,352 4,879 109,191
(-)Costs and Expenses (32,380) (14,377) (4,765) (51,523)
(-)Holding (11,152) (3,758) - (14,910)
(-) Stock Option Expenses CPC10 (235) - - (235)
(-) Expenses to Accrue from Itaú (238) - - (238)
(=)EBITDA 34,954 7,217 114 42,285
EBITDA Margin 44.3% 28.5% 2.3% 38.7%
(+/-) Other nonrecurring results - - - -
(-)Depreciation and amortization (3,278) (773) (14) (4,065)
(+/-) Financial Result 4,489 216 24 4,729
(-)Income tax and social contribution (7,737) 354 (93) (7,476)
(=)Net income before IFRS* 28,428 7,013 32 35,473
Net Margin before IFRS 36.0% 27.7% 0.7% 32.5%
(=)Net income after IFRS 40,902 959 32 41,893
Net Operating Margin 51.8% 3.8% 0.7% 38.4%
(-) Non-controlling Shareholders (3,453)
(=) Net Income Attributable to Controlling Shareholders After IFRS 38,440
Net Margin Controlling Shareholders 35.2%
*We co nsider the net inco me ajusted by no n cash IFRS 3 effects (B usiness Co mbinatio n) the best net inco me indicato r
44
46. CrediPronto!
P&L*
(R$ thousands) 2011
Total
Amount Financed 1,270,674
Opening portfolio 707,053
Closing portfolio 1,767,940
Average portfolio balance1 976,864
Financial Margin 24,401
% Spread 2.5%
(-) Sales taxes -2,194
(-) Total costs and expenses -37,622
(-) Back Office expenses -6,729
(-) Sales expenses -20,124
(-) Commissions -12,547
(-) Others -187
(+/-) Correspondent bank -
(+) Other revenues (Financ.) 1,365
(-) Allowance for doubtful accounts (ADA) 600
(-) Taxes -6,419
(=) Net result -21,835
% Net Margin -98.3%
50% Profit Sharing -10,918
*The managerial P&L measures the results of the JV. Olimpia’s Results and all Revenues and Expenses incurred by Itau are considered.
• The numbers of the managerial P&L were audited for 2011 by Ernst&Young and, due to its managerial nature, it does not follow accounting standards. 46
47. Allowance for Doubtful Accounts
Example of P&L with a financing contract
for a $200 unit:
Month 1 Month 2 Month 5 Month 8
Financial Margin $100 $100 $100 $100
Expenses¹ -$60 -$60 -$60 -$60
Specific Allowance - -$5 -$25 +$200
Result $40 $35 $15 $240
Recovery of
Default Property
Ex: Sale for +$100: Profit for
Sale of the $300 the bank
recovered
property
Ex: Sale for -$50: Loss
$150 of the bank
¹ Including general allowance 47
49. Lopes’ Contracted Sales Seasonality
41%
37%
32% 33%
31% 30% 30% Average of Historical
29% 29% 28% 26% 27% Seasonality of the
25% 24% 25% 24% second quarter:
22% 23% 23%
21% 22%
18% 19% 19%
17% 16% 26%
14% 15%
2005 2006 2007 2008* 2009 2010 2011
1Q 2Q 3Q 4Q
* The seasonality can not be verified in 2008, because of the effects of the world financial crisis. 49
50. Ownership Structure
Ownership Structure Post-IPO
32%
42%
Rosediamond
Chairman and Vice Chairman
Management
Free Float
1%
25%
Total of 57,078,658 common shares
50
51. Company Roadmap
Long Term Strategic Goals
Mantain Leadership in Primary Market
Achieve dominant position in Secondary Market,
Growing from 24% to 40/50% of our Sales
Grow the Mortgage Portfolio, achieving high
profitability levels ( Break even 2H12)
Develop other Opportunities tied to Services in
Real Estate Market.
51
