2. Forward-looking statements
This presentation does not constitute or form part of any offer, or invitation or solicitation of any offer to purchase,
sell or subscribe for shares or other securities of the Company, nor shall this presentation or any information
contained herein form the basis of, or act as inducement to enter into, any contract or commitment whatsoever.
This presentation contains financial and other information related to the business operations of Lopes –LPS Brasil
Consultoria de Imóveis S.A and its subsidiaries (“LPS” or the “Company”) as of and for the period ended
September 30th 2013. It should not be considered as a recommendation for prospective investors to sell,
purchase or subscribe for securities of the Company. The information presented herein is in summary form and
does not purport to be complete. No reliance should be placed on the accuracy completeness of the
information contained herein, and no representation or warranty, express or implied, is given on behalf of the
Company or its subsidiaries as to the accuracy completeness of the information presented herein.
This presentation contains forward-looking statements. Investors are advised that whilst the Company believes
they are based on reasonable assumptions by Management, forward-looking statements rely on current
expectations and projections about future events and financial trends, and are not a guarantee of future results.
Forward-looking statements are subject to risks and uncertainties that affect or may affect business conditions
and results of operations, which therefore could materially differ from those anticipated in forward-looking
statements due to several factors, including competitive pressures, Brazilian macroeconomic conditions,
performance of the industry, changes in market conditions, and other factors expressed or implied in these
forward-looking statements or disclosed by the Company elsewhere, factors currently deemed immaterial.
The forward-looking statements contained herein speak only as of the date they are made and neither
Management, nor the Company or its subsidiaries undertake any obligation to release publicly any revision to
these forward-looking statements after the date of this presentation or to reflect the occurrence of unanticipated
events.
2
5. 3Q13 Highlights
Total transactions closed reached R$ 14.2 billion in 9M13 and 4.5 billion in 3Q13
We had the best quarter in transactions closed in the secondary market in our history. Secondary market
transactions achieved R$ 3.6 billion in 9M13 and R$ 1.3 billion in 3Q13;
Net revenue came to R$ 128.8 million, increase of 18% when compared to 3Q12
EBITDA of R$ 60.2 million, up 42% from 3Q12. EBITDA Margin of 46.7%, 890 bps above 3Q12
Adjusted EBITDA, without non-recurring effects came to R$ 38.2 million, with EBITDA Margin of 36,5%, 180 bps
above 2012 average (34.7%);
Net Income of Controlling Shareholders before IFRS was R$ 37.0 million with a net margin of R$ 28.7%. An
increase of 45% when compared to 3Q12 and an improvement of 590 bps of net margin
We generated R$ 37.4 million through our operating activities in the quarter, which represented 76% of our net
income
Credipronto! presented its best quarter ever in mortgage loans origination with R$ 564 million in 3Q13, up 56%
from 3Q12, and CrediPronto!’s ending portfolio balance increased 48% when compared to 3Q12
We recognized another share of the second stake of CrediPronto’s earnout, totaling R$ 24.9 million. We
already recognized R$ 42.4 million YTD, and this recognition is partial and a complete calculation will be held
during 2013
5
8. Sales Speed over Supply
Lopes' Consolidated Sales Speed
(%)
Habitcasa’s Sales Speed
(%)
17.3%
16.6%
29.0%
2Q13
3Q13
2Q13
25.8%
3Q13
Transactions closed/supply ratio fell when compared to 2Q13
8
9. Transactions Closed by Income Segment – Primary / Secondary Markets
Transactions Closed
R$ 4,975 million
R$ 4,497 million
3Q12
3Q13
5%
7%
24%
34%
31%
45%
26%
28%
Units
15,061 units
10,730 units
3Q12
3Q13
10%
15%
27%
34%
19%
22%
36%
37%
<150
150-350
350-600
>600
9
10. Transactions Closed by Region – Primary and Secondary Market
Transactions Closed
3Q13
3Q12
6%
4%
5%
15%
6%
20%
48%
50%
4%
4%
20%
18%
São Paulo
Rio de janeiro
Brasília
South
Northest
Others
Increase of 500 basis points of South region’s stake
10
13. 3Q13 Launches
Launches 3Q11 | 3Q12 | 3Q13
(R$ MM)
-1,573
-2,464
6,918
7,809
5,345
3Q11
3Q12
3Q13
3Q13 presented less launches than 3Q11, that was already seasonally weak
13
14. Breakdown of Homebuilders
Concentration of Launches
(%)
4Q13E
4Q12
4Q11
3Q13
3Q12
3Q11
2Q13
2Q12
2Q11
1Q13
1Q12
1Q11
42%
15%
26%
22%
25%
18%
23%
15%
12%
10%
45%
44%
45%
In line with the historical
seasonality observed in
the pipeline of
launches, we believe in
a strong turnaround of
the volume of launches
in 4Q13
14
21. Gross and Net Revenue
Gross Revenue
Net Revenue
(R$ MM)
(R$ MM)
+18%
+16%
128.8
143.2
24.9
CrediPronto’s earnout
24.0
-4%
CrediPronto’s earnout
-4%
123.7
118.3
108.8
104.8
3Q12
3Q13
3Q12
3Q13
Net revenue grew 18% and reached R$ 128.8 million in 3Q13
21
22. 3Q13 Gross Revenue Reconciliation
3Q13 - Gross Revenue Reconciliation (R$ Million)
Contracted Sales (a)
Net Comission (b)
4,497
2.40%
Gross Brokerage
Revenue (a) x (b)
107.8
Earn Out Recognition
Revenue to Accrue from Itaú
Operations
Other revenues
Adjustment to Present Value
Gross Revenue
24.9
3.6
7.8
(0.9)
143.2
IMPORTANT CRITERIA FOR CONTRACTED SALES
The contracted sales released in the quarter is exclusively based on the invoiced sales,
which multiplied by the net commission result in the gross revenue of the quarter.
Thus, the contracted sales meets all the criteria for accounting the Company’s gross
revenue, even including the contract approval by the homebuilder. Additional sales
generated during this same period, that do not meet all the accounting criteria were not
considered as contracted sales of the period.
22
23. Expenses
Operating Expenses¹ 3Q13 (R$ MM)
65.0
3Q12
72.1
4Q12
65.6
68.1
63.4
1Q13
2Q13
3Q13
3Q13 represented a lower level of operating expenses
1. Excludes costs and expenses of CrediPronto!.
23
24. 3Q13 Results
Results 3Q13 Before IFRS
(R$ thousand)
Launches
Gross Service Revenue
Revenue from Real Estate Brokerage
Revenue to Accrue from Itaú Operations
Earn Out
Adjustment to Present Value
Pronto!
CrediPronto!
Consolidated
Ex. Non-recurring
Non-recurring
Consolidated
24,894
143,194
80,110
32,592
5,598
118,300
77,275
32,713
5,598
115,586
-
115,586
3,625
-
-
3,625
-
3,625
-
-
-
24,894
24,894
(790)
(121)
-
(911)
Net Operating Revenue
70,888
28,840
5,093
104,821
(-)Costs and Expenses
(34,622)
(12,601)
(3,469)
(50,693)
(-)Shared Services
(11,037)
(4,490)
-
(15,527)
A
B
(911)
23,985
128,806
(1,710)
(52,403)
(363)
(15,890)
(-) Stock Option Expenses CPC10
(381)
-
-
(381)
-
(381)
(-) Expenses to Accrue from Itaú
(238)
-
-
(238)
-
(238)
(+/-) Equity Equivalence
(=)EBITDA
EBITDA Margin
(-)Depreciation and amortization
(+/-) Financial Result
(-)Income tax and social contribution
(=)Net income before IFRS
Net Margin before IFRS
24,610
11,748
260
260
1,884
38,243
34.7%
40.7%
37.0%
36.5%
(2,817)
(1,041)
-
21,912
(3,859)
3,311
(7,591)
17,512
24.7%
570
(2,702)
5
(609)
8,575
1,280
29.7%
25.1%
46.7%
-
3,886
(10,903)
27,367
260
60,154
(3,859)
C
3,886
(2,708)
(13,611)
19,203
46,570
26.1%
36.2%
(-) Non-controlling Shareholders
(9,601)
(9,601)
(=) Net Income Attributable to Controlling Shareholders Before IFRS*
17,766
Net Margin Controlling Shareholders
16.9%
19,203
36,969
28.7%
*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
A
Net effect of partial recognition of the second installment of CrediPronto’s earnout;
B
Non-recurring expenses: (R$ 1.6 million) restructuring charge and (R$ 0.5 million) bonus accrual referred to partial
recognition of CrediPronto’s earnout;
C
Income Tax impact referred to partial recognition of CrediPronto’s earnout;
24
25. Net Income 3Q13 by segment
Net Income from launches 3Q13 (R$ Thousand)
11,315
22,761
(32%)
6,365
7,225
17,512
(25%)
8,457
1,531
Launches Net
Income After IFRS
Net Margin (%)
Call/put effect
Earnout impact
Taxes over
intangible assets
Impairment
Amortization of
Launches Net
intangible assets Income Before IFRS
Net Margin (%)
Net Income from Pronto! 3Q13 (R$ Thousand)
127
4,589
4,957
(17%)
Pronto! Net
Income after IFRS
Net Margin (%)
7,458
Call/put effect
8,575
(30%)
6,360
Impairment
Amortization of
intangible assets
Earnout Impact
Pronto! Net
Income Before IFRS
Net Margin (%)25
26. 3Q13 Results – Launches segment before IFRS
Launches
EBITDA & Margin
Launches
Net Income & Margin before IFRS
(R$ MM)
(R$ MM)
-29%
-37%
34.8
(42%)
27.6
(34%)
24.6
(35%)
3Q12
3Q13
17.5
(25%)
3Q12
3Q13
26
27. 3Q13 Results – Pronto! segment before IFRS
Pronto!
EBITDA & Margin
(R$ MM)
Pronto!
Net Income & Margin before IFRS
(R$ MM)
+77%
+123%
11.7
(41%)
6.6
(27%)
3Q12
8.6
(30%)
3.8
(16%)
3Q13
3Q12
3Q13
27
28. EBITDA and Net Income
Net Income Attributable to Controlling
Shareholders ex-IFRS 2
Net Margin (%)
EBITDA1
EBITDA Margin (%)
(R$ MM)
(R$ MM)
+42%
+45%
60.2
(46%)
Non-recurring³
37.0
(30%)
Non-recurring³
21.9
19.2
-10%
-30%
42.3
(39%)
3Q12
38.2
(36%)
25.5
(23%)
3Q13
3Q12
17.8
(17%)
3Q13
1) Includes results from subsidiaries and companies under shared-control, in accordance with equity accounting, and results from non-controlling shareholders.
Note: EBITDA is not an accounting measure and does not represent the cash flow for the reported periods, and therefore should not be used as an alternative to
cash flow as a measure of liquidity. The Company’s EBITDA was calculated in accordance with CVM Instruction 52. a.
2) We consider the net income adjusted by non cash IFRS 3 effects (Business Combination) the most accurate net income indicator.
3) Non recurring: Partial recognition of the 2nd installment of CrediPronto's earnout, expenses related to CrediPronto's earnout and restructuring charge.
28
29. IFRS Impacts – Net Income before non-controlling shareholders
R$ Thousand
Description
Before
IFRS
IFRS Effects*
After IFRS
Net Operating Revenue
128,806
Costs and Expenses
-67,050
-14,817
Non-Recurring Losses
-1,602
0
Depreciation and Amortization
-3,859
-10,954
-14,813 (2)
3,886
25,871
29,757 (3)
60,181
100
-13,612
1,531
Net Income
46,570
1,631
48,201 (1)+(2)+(3)+(4)
Non-controlling Shareholders
-9,601
5,918
-3,683 (5)
Net Income attributable to
controlling shareholders
36,969
7,549
44,518 (1)+(2)+(3)+(4)+(5)
Finance Result
Operational Profit
Income tax and social contribution
128,806
-81,867 (1)
-1,602
60,281 (1)+(2)+(3)
-12,081 (4)
* IFRS 3 non cash effects (business combination)
(1) Impairment of Goodwill and Intangible Assets from Acquisition. Since 2010, the acquisitions made by LPS Brasil are
accounted by the “CAP” of “Earnout” amounts. Every year, as the CAP amounts are not confirmed by the performance of the
companies, goodwill and intangible assets are impaired accordingly, with a counter-entry reducing the earnout amounts
payable.
(2) Amortization of Intangible Assets.
(3) Combined effect from: i) Gains and Losses, with non-cash net effects, from the booking of call and put options at
subsidiaries, based on the fair value of future estimates, and ii) non-cash correction/write-off of earnout installments payable.
(4) Deferred income tax on intangible assets of LPS Brasil.
(5) Effects related to deferred income tax and amortization of intangible assets at non-controlling shareholders.
29
