3Q14 Results Conference Call Presentation

1. Earnings Presentation
3Q14 and 9M14

2. 2
Highligts
i. Cash generation. Cash generation in 9M14 of R$ 169.0 million (proportional) and R$ 86.9 million in 3Q14, registering significant growth
from the second quarter. Based on IFRS consolidation, cash generation reached R$ 92.0 million in 3Q14 and R$ 156.0 million in 9M14.
ii. Record cash flow from financing transfer. Cash flow from financing transfers reached R$ 896.4 million (Rossi's share R$ 732.8
million) in 3Q14, an increase of 8.2% from 2Q14. In the year totaled R$ 2.5 billion (Rossi's share R$2.0 billion).
iii. Improved efficiency and increase in financing transfers. The volume transferred (signing of financing contracts or settlement by
customers) in 9M14 increased 15% in relation to the same period last year. Sales speed (SOS) of unit transfers (number of contracts
signed and units paid off, divided by the transfer potential) increased to 37.3%, from 28.8% in 2Q14.
iv. Acceleration of deliveries. Potential sales value (PSV) delivered in 9M14 totaled R$ 2.4 billion (Rossi’s share R$ 2.0 billion),
representing about 8,000 units. In 3Q14, deliveries totaled R$ 1.1 billion (Rossi's share R$793.8 million), an increase of 31.3% from 2Q14.
v. Reduction in construction works and sites. At present, Rossi has 63 construction sites and costs to be incurred of R$ 2.2 billion
(Rossi's share R$1.7 billion), a reduction of 18.9% from the second quarter.
vi. Increased participation of Rossi’s in-house engineering team in construction works. Rossi’s in-house teams are executing 90%
of the works launched since 2013 and 78% of all the work in progress.
vii. Growth in sale of inventory units Focus on inventory of units ready and to be delivered in 2014, which corresponded to 72.7% of the
sales in 9M14, an increase of 2.0% in relation to 2Q14.
viii. Acceleration of Sales Speed. Increase in sales speed (VSO) in last 12 months to 45.8%, an increase of 1.0 p.p. from the second
quarter.
ix. Increase in rescissions to generate potential cash. Rescissions totaled R$1.0 billion (Rossi's share R$ 753.5 million) in the year, of
which 60% has already been sold.

3. 3
2013-2015 Strategic Plan | Update
Achievements 9M14
Operational Cash Generation (Proportional) : R$ 169MM
Annualized G&A of R$ 190 MM
% Rossi Vendas: 57%
Increase of 15% vs. 9M13
90% of the construction beginning in 2013 will be
done by Rossi
Rossi already executes 78% of the ongoing projects
All launches in Strategic regions since the release of
strategic plan
Average Price :R$ 534 k/unit
% Rossi (c/ JVs) : 90%
Focus
G&A G&A Expenses efficiency
Rossi Vendas Increase Rossi Vendas stake on the total sales
Financing
Transfers
Focus in house restructuring and transfer of financing
Construction Execution of 90% of the construction
Partners
Operation
Income Segment
Increase Rossi´s stake in the launches up to 95% of the
total PSV. excluding JVs Capital Rossi and Norcon Rossi)
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)
Land Bank
Disablement of the Land Bank outside from the launching
pipeline
Business Units
Search for financial/strategic partners for Urbanizadora
and Properties
Focus on cash generation and profitability
Strategic Plan
Total Signed: R$ 56. 5 MM
R$ 82.3 MM received on 9M14

4. Operational Results
4

5. 5
Operational Highlights
Average Price | 9M14Metropolitan Region | 9M14
New Launches:
In line with the Strategic Plan
Metropolitan Region with proven track record
Focus on medium-/high-income segment
100% are eligible for funding through the SFH with
FGTS

6. 6
Metropolitan Region| 9M14
Construction Stage| 9M14 Product Breakdown | 9M14
Operational Highlights (cont.)

7. 7
Operational Highlights (cont.)
Metropolitan Region| 9M14
Construction Stage| 9M14 Product Breakdown | 9M14

8. 8
 Decrease of -14.4% in number of units coc
concluded and to be delivered in 2014.
 Units with higher cash flow potencial in the
short term.
 Decrease of -8.7% in units of non strategic
regions
 Success in increasing the inventory turnover
 Marketing Campaigns
 Price Discount
Operational Highlights (cont.)

9. 9
Land Bank
Residential Development:
Total PSV: R$ 8.8 bi (R$ 7.3 bi Rossi’s share);
Launches up to 2016: R$ 5.5 billion (R$ 4.7 billion Rossi´s share)
Launches after 2016: R$ 3.0 billion (R$ 2.4 billion Rossi´s share)
Entreverdes Urbanismo: R$ 5.7 billion (R$4.3 billion Rossi´s share)
Decommissioning: R$ 1.7 billion (R$ 1.2 billion Rossi´s share)
Launches up to 2016 | Product Breakdown (% Rossi)Launces up to 2016 | Metropolitan Region (% Rossi)

10. Financial Results
10

11. 11
Cash and Equivalents and Indebtness
100%
R$ million 3Q14 2Q14 1Q14
Total debt 3.881,0 4.168,4 4.434,4
Cash and Cash Equivalents 775,5 1.000,4 1.221,4
Net Debt 3.105,5 3.168,1 3.212,9
Net Debt ÷ Shareholder´s Equity 117,2% 108,7% 110,1%
Cash Generation 3Q14 62,6 44,9 68,2
Cash Generation YTD 175,7
Proporcional
R$ million 3Q14 2Q14 1Q14
Total debt 3.327,0 3.574,0 3.832,1
Cash and Cash Equivalents 656,0 816,1 1.067,2
Net Debt 2.671,0 2.757,9 2.764,9
Net Debt ÷ Shareholder´s Equity 119,50% 114,9% 115,2%
Cash Generation 3Q14 86,9 6,9 75,1
Cash Generation YTD 169,0
IFRS
R$ million 3Q14 2Q14 1Q14
Total debt 2.744,5 3.011,6 3.134,5
Cash and Cash Equivalents 571,4 746,4 973,0
Net Debt 2.173,1 2.265,2 2.161,5
Net Debt ÷ Shareholder´s Equity 101,9% 94,6% 89,9%
Cash Generation 3Q14 92,1 (103,7) 167,6
Cash Generation YTD 156,0

12. 12
Cash and Equivalents and Indebtness (cont.)

13. Corporate Gross Debt - IFRS
Amortization Schedule| R$ MM
Corporate Debt Trend 2014 | R$ MM
13
Amortization of R$ 391.4 million of the corporate debt
unitl November/14.
From the R$ 1,2 billion to be paid on 2014, R$ 550
million were rolledover.

14. Related Parties
14

15. Cash Flow Drivers
Construction Cost to be incurred (100%) | R$ MM
15
Cash Inflow| R$ MM
Financial Transfers SoS
Increase of Financial Transfers
potential:
 PSV delivered in 3Q14: R$ 1.0 bi
 Resales of cancelled units
 Focus on concluded and to be delivered in
2014 units

16. Sales Cancellations Impacts
16
 The rationale behind Rossi’s strategy of
speeding up the rescission process is based
on the following :
 (i) the amount returned to the client is
recovered within three months;
 (ii) the buyer of completed units is
normally the final buyer, who is fully
interested in quickly carrying out the
financing transfer process.
 Positive cash flow of R$ 55.6 million
YTD, boosting receivables transfers
potential
 Price variation of resold units until
September, compared to its original price is
+10.0.
 Price variation of resold units until
September, compared to its adjusted inflation
price is -10.6.

17. 17
Financial Highligts
Net Revenues (R$ million) Gross Profit (R$ million) and Gross Margin (%)¹
Net Income (R$ R$ million) and Net Margin (%)Adjusted EBITDA¹ (R$ million) and EBITDA¹ Margin (%)
¹ Excluding interest on COGS
22,2%
21,6%
30,2%
29,7%
8,6%
0,4%
27,0% 27,6%
2,4%

18. Equipe de RI
Obrigado!IR Team
Tel. (55 11) 4058-2502
ri@rossiresidencial.com.br
www.rossiresidencial.com.br/ri
Contacts
18