1Q13 Results
Investor Relations
Disclaimer
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
2
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
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, 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.
Index
Opening Remarks and Estrategic Planning: Leonardo Nogueira Diniz | CEO
Operational Results: Rodrigo Martins | Commercial Officer
Engineering: Renato Diniz | Enginner Officer
Financial Results: Rodrigo Medeiros | CFO and Investor Relations Officer
3
Focus
G&A
Financing Transfers
2013-2015 Strategic Plan | Update
Focus on cash generation and profitability
Focus in house restructuring and transfer of financing
G&A Expenses efficiency
2013-2015 Strategic Plan Achievements 1Q13
Operational Cash Burn of R$ 24 MM
19% decrease versus 1Q12
Transferring 72% of potential clients in 1Q13 and
almost 90% of the potential cash collecting.
Favorable outlook due the advanced stages of
structuring the in house team
Land Bank Disablement of the Land Bank outside from the launching
pipeline
Business Units Search for financial/strategic partners for Urbanizadora
and Properties
On going initiatives of disablement in line with
the 2013-2015 Strategic Plan for the quarter
4
Partners
Rossi Vendas
Operation
Income Segment
increase Rossi´s stake in the launches up to 95% of the
total PSV, excluding JVs Capital Rossi (Manaus) and
Norcon Rossi
Increase Rossi Vendas stake in the total sales
Operations focused on 7 metropolitan regions (+JVs),
where it ranks among Top 3
Focus on medium-/high-income segments (average price
between entre R$ 200 k and R$ 1 million)
Rossi Vendas amounted to 58% of Rossi’s Gross
Sales vs 51% in 1Q12
Construction
Compensation plan
Rossi will execute 90% of the construction with its own
engineering team
Long-term incentives based on cash generation and
profitability
Rossi already executes 50% of the constructions
Construction beginning in 2013, 90% will be
Rossi´s
Approval of the Program in the Board of
Director´s Meeting
Implementing goals and KPIs and also hiring a
specialized consulting company
and Properties
New launches will be aligned with the 2013-2015
Strategic Plan
Operational Results
5
Contracted Sales
Gross Sales - R$ million | 1Q13 Income Segment Breakdown ¹ (% Rossi) | 1Q13
810
471
285
123
1Q12 1Q13
Rossi Partners
1.096
-46%
593
Conventional
52%
MCMV
24%
Low Income
(s/MCMV)
19%
Commercial
5%
6
Metropolitan Region Breakdown (% Rossi) – 1Q13
¹ Low Income: average price between R$ 170 and R$ 200 k;
MCMV: Units launched in the Minha Casa Minha Vida Program.
Gross Sales breakdown (% Rossi) | Launch Year
Non-Strategic
Regions
25%
Porto Alegre
18%
São Paulo
15%
Campinas
9%
Curitiba
7%
Norcon Rossi
(Aracaju/Recife)
7%
Capital Rossi
(Manaus)
6%
Rio de Janeiro
6%
Brasília
5%
Belo Horizonte
2%
2009 and Prior
43%
2011
22%
2010
21%
2012
15%
29%
45% 49% 57% 58%
71%
55% 51% 43% 42%
2009 2010 2011 2012 1T13
Sales Speed
Rossi’ Vendas Share | % of Gross SalesSales Speed (last 12 months)
63%
68%
65%
60%
61%
69%
67%
59% 58%
69%
1Q12 2Q12 3Q12 4Q12 1Q13
Sales over Supply (SOS) Sales over Supply (Delivered units)
Rossi Vendas Other Brokers
7
Sales Cancellations (% Rossi) | R$ MM
171
283
323
522
127
1Q12 2Q12 3Q12 4Q12 1Q13
-76%
-26%
Land Bank
Residential Land Bank :
Rossi´s PSV of R$ 8.4 bi, equivalent to
approximately 3 years of launches;
Only land that passed the new feasibility tests
as per the company’s new standards was
retained;
Land Disablement in ling with the Strategic Plan
Land Bank Breakdown
Residential Land Bank | Income Segment (% Rossi)Residential Land Bank | Metropolitan Region (% Rossi)
R$ 1Q13 4Q12 Chg. (%)
Land Bank 15,991,407 18,364,389 -13%
Rossi Residencial 8,394,398 8,838,835 -5%
Disablement ¹ 2,856,344 3,425,710 -17%
Rossi Urbanizadora 4,740,665 6,099,844 -22%
¹ Land returned and/or sold
8
Norcon Rossi
25%
Rio de Janeiro
22%
São Paulo
16%
Porto Alegre
12%
Campinas
10%
Belo Horizonte
7%
CapitalRossi
4%
Brasília
3%
Curitiba
1%
From R$ 200K to
R$ 350K
42%
Above R$ 500K
33%
From R$ 350K to
R$ 500K
15%
Low Income
9%
Commercial
1%
Engineering
9
Engineering
Rossi´s Construction Team
Team fully remunerated with construction cost and delivery schedule for the fifth year in a row;
Training (partnership with USP and UFRGS);
227
292
+29%
125
199
+59%
# of Trained Employees
10
2012 2013
# of units delivered
6.254
9.490
17.598
2.342
3.089
2010 2011 2012 1Q12 1Q13
+52%
+85%
+32%
2012 2013
Financial Results
11
Financial Highlights
24%
21%
38,6%
26,8%
Net Revenues (R$ million) Gross Profit (R$ million) and Gross Margin¹ (%)
831
720
1Q12 1Q13
24%
21%
-13%
255
114
38,6%
26,8%
1Q12 1Q13
-55%
12
14%
10%22,0%
16,0%
7,5%
-1,4%
¹ Adjusted Gross Margin
Net (Loss) Income (R$ million)Adjusted EBITDA (R$ million) and Adjusted EBITDA Margin (%)
183
11322,0%
15,7%
1Q12 1Q13
-38%
63
-10
7,5%
-1,4%
1Q12 1Q13
-116%
Deliquency and Cash Collection
727
598
544
437
489
1Q12 2Q12 3Q12 4Q12 1Q13
4,5%
4,1%
3,6% 3,4% 3,3%
9,0%
7,6%
6,5%
6,1% 6,2%
1Q12 2Q12 3Q12 4Q12 1Q13
Delinquency Rate (Delinquency/Total Receivables) Outstanding Balance (Falling Due) | R$ MM
13
469
651
1Q13 Actual 1Q13 Potential
Past Due Falling Due
611
696
1Q13 Actual 1Q13 Potential
Transferring clients (100%) | R$ MM Cash Collection (100%) | R$ MM
Indebtedness | (R$ MM)
Indebtedness
Indebtedness Maturity Schedule | (R$ MM)
R$ MM 1Q13 4Q12 Chg. (%)
Gross Debt 4,209 4,529 -7%
Cash and Equivalents 1,315 1,696 -22%
Net Debt 2,894 2,834 2%
Net Debt / Equity 124.3% 123.3% 1.0 p.p.
Indebtedness | Breakdown
Construction
Financing
67%
Debentures
21%
Working Capital
10%
Receivables
Securitization
2%
14
759
1.007
470 402
314
611
338
308
2013 2014 2015 +2016
Corporate Debt SFH
1.074
1.619
807
710
Equipe de RI
Obrigado!IR Team
Phone: +55 (11) 4058-2502
ri@rossiresidencial.com.br
www.rossiresidencial.com.br/ri
IR Contacts
15

1Q13 Results Presentation

  • 1.
  • 2.
    Disclaimer This material isa 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 2 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 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, 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.
  • 3.
    Index Opening Remarks andEstrategic Planning: Leonardo Nogueira Diniz | CEO Operational Results: Rodrigo Martins | Commercial Officer Engineering: Renato Diniz | Enginner Officer Financial Results: Rodrigo Medeiros | CFO and Investor Relations Officer 3
  • 4.
    Focus G&A Financing Transfers 2013-2015 StrategicPlan | Update Focus on cash generation and profitability Focus in house restructuring and transfer of financing G&A Expenses efficiency 2013-2015 Strategic Plan Achievements 1Q13 Operational Cash Burn of R$ 24 MM 19% decrease versus 1Q12 Transferring 72% of potential clients in 1Q13 and almost 90% of the potential cash collecting. Favorable outlook due the advanced stages of structuring the in house team Land Bank Disablement of the Land Bank outside from the launching pipeline Business Units Search for financial/strategic partners for Urbanizadora and Properties On going initiatives of disablement in line with the 2013-2015 Strategic Plan for the quarter 4 Partners Rossi Vendas Operation Income Segment increase Rossi´s stake in the launches up to 95% of the total PSV, excluding JVs Capital Rossi (Manaus) and Norcon Rossi Increase Rossi Vendas stake in the total sales Operations focused on 7 metropolitan regions (+JVs), where it ranks among Top 3 Focus on medium-/high-income segments (average price between entre R$ 200 k and R$ 1 million) Rossi Vendas amounted to 58% of Rossi’s Gross Sales vs 51% in 1Q12 Construction Compensation plan Rossi will execute 90% of the construction with its own engineering team Long-term incentives based on cash generation and profitability Rossi already executes 50% of the constructions Construction beginning in 2013, 90% will be Rossi´s Approval of the Program in the Board of Director´s Meeting Implementing goals and KPIs and also hiring a specialized consulting company and Properties New launches will be aligned with the 2013-2015 Strategic Plan
  • 5.
  • 6.
    Contracted Sales Gross Sales- R$ million | 1Q13 Income Segment Breakdown ¹ (% Rossi) | 1Q13 810 471 285 123 1Q12 1Q13 Rossi Partners 1.096 -46% 593 Conventional 52% MCMV 24% Low Income (s/MCMV) 19% Commercial 5% 6 Metropolitan Region Breakdown (% Rossi) – 1Q13 ¹ Low Income: average price between R$ 170 and R$ 200 k; MCMV: Units launched in the Minha Casa Minha Vida Program. Gross Sales breakdown (% Rossi) | Launch Year Non-Strategic Regions 25% Porto Alegre 18% São Paulo 15% Campinas 9% Curitiba 7% Norcon Rossi (Aracaju/Recife) 7% Capital Rossi (Manaus) 6% Rio de Janeiro 6% Brasília 5% Belo Horizonte 2% 2009 and Prior 43% 2011 22% 2010 21% 2012 15%
  • 7.
    29% 45% 49% 57%58% 71% 55% 51% 43% 42% 2009 2010 2011 2012 1T13 Sales Speed Rossi’ Vendas Share | % of Gross SalesSales Speed (last 12 months) 63% 68% 65% 60% 61% 69% 67% 59% 58% 69% 1Q12 2Q12 3Q12 4Q12 1Q13 Sales over Supply (SOS) Sales over Supply (Delivered units) Rossi Vendas Other Brokers 7 Sales Cancellations (% Rossi) | R$ MM 171 283 323 522 127 1Q12 2Q12 3Q12 4Q12 1Q13 -76% -26%
  • 8.
    Land Bank Residential LandBank : Rossi´s PSV of R$ 8.4 bi, equivalent to approximately 3 years of launches; Only land that passed the new feasibility tests as per the company’s new standards was retained; Land Disablement in ling with the Strategic Plan Land Bank Breakdown Residential Land Bank | Income Segment (% Rossi)Residential Land Bank | Metropolitan Region (% Rossi) R$ 1Q13 4Q12 Chg. (%) Land Bank 15,991,407 18,364,389 -13% Rossi Residencial 8,394,398 8,838,835 -5% Disablement ¹ 2,856,344 3,425,710 -17% Rossi Urbanizadora 4,740,665 6,099,844 -22% ¹ Land returned and/or sold 8 Norcon Rossi 25% Rio de Janeiro 22% São Paulo 16% Porto Alegre 12% Campinas 10% Belo Horizonte 7% CapitalRossi 4% Brasília 3% Curitiba 1% From R$ 200K to R$ 350K 42% Above R$ 500K 33% From R$ 350K to R$ 500K 15% Low Income 9% Commercial 1%
  • 9.
  • 10.
    Engineering Rossi´s Construction Team Teamfully remunerated with construction cost and delivery schedule for the fifth year in a row; Training (partnership with USP and UFRGS); 227 292 +29% 125 199 +59% # of Trained Employees 10 2012 2013 # of units delivered 6.254 9.490 17.598 2.342 3.089 2010 2011 2012 1Q12 1Q13 +52% +85% +32% 2012 2013
  • 11.
  • 12.
    Financial Highlights 24% 21% 38,6% 26,8% Net Revenues(R$ million) Gross Profit (R$ million) and Gross Margin¹ (%) 831 720 1Q12 1Q13 24% 21% -13% 255 114 38,6% 26,8% 1Q12 1Q13 -55% 12 14% 10%22,0% 16,0% 7,5% -1,4% ¹ Adjusted Gross Margin Net (Loss) Income (R$ million)Adjusted EBITDA (R$ million) and Adjusted EBITDA Margin (%) 183 11322,0% 15,7% 1Q12 1Q13 -38% 63 -10 7,5% -1,4% 1Q12 1Q13 -116%
  • 13.
    Deliquency and CashCollection 727 598 544 437 489 1Q12 2Q12 3Q12 4Q12 1Q13 4,5% 4,1% 3,6% 3,4% 3,3% 9,0% 7,6% 6,5% 6,1% 6,2% 1Q12 2Q12 3Q12 4Q12 1Q13 Delinquency Rate (Delinquency/Total Receivables) Outstanding Balance (Falling Due) | R$ MM 13 469 651 1Q13 Actual 1Q13 Potential Past Due Falling Due 611 696 1Q13 Actual 1Q13 Potential Transferring clients (100%) | R$ MM Cash Collection (100%) | R$ MM
  • 14.
    Indebtedness | (R$MM) Indebtedness Indebtedness Maturity Schedule | (R$ MM) R$ MM 1Q13 4Q12 Chg. (%) Gross Debt 4,209 4,529 -7% Cash and Equivalents 1,315 1,696 -22% Net Debt 2,894 2,834 2% Net Debt / Equity 124.3% 123.3% 1.0 p.p. Indebtedness | Breakdown Construction Financing 67% Debentures 21% Working Capital 10% Receivables Securitization 2% 14 759 1.007 470 402 314 611 338 308 2013 2014 2015 +2016 Corporate Debt SFH 1.074 1.619 807 710
  • 15.
    Equipe de RI Obrigado!IRTeam Phone: +55 (11) 4058-2502 ri@rossiresidencial.com.br www.rossiresidencial.com.br/ri IR Contacts 15