This presentation summarizes Lopes' operational and financial results for 4Q12 and full year 2012. Key highlights include:
- Total transactions closed reached R$19 billion in 2012, a 4% increase over 2011.
- CrediPronto! reached profitability in November 2012 and originated R$1.5 billion in mortgage loans in 2012, up 18% over 2011.
- Net revenue increased 5% to R$423 million while EBITDA grew 9% to R$146.7 million in 2012 compared to 2011.
- Net income of controlling shareholders before IFRS was R$86.2 million, an 11% increase over 2011.
1. 4Q12 / 2012 Presentation
Presenters
Marcos Lopes – CEO
Francisco Lopes – COO
Marcello Leone – CFO and IRO
Bruno Gama - COO CrediPronto!
1
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 2012. 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
3. Schedule
I. Highlights
II. Operational Results
III. Credipronto!
IV. Financial Results
3
5. Highlights
Total transactions closed of R$ 19.0 billion, up 4% from 2011
Credipronto! reached breakeven point in November 2012
Total transactions closed in the primary market of R$ 14.4 billion. Stable performance compared
to 2011
Total transactions closed in the secondary market of R$ 4.6 billion. Growth of 20% over the
previous year
Net Revenue of R$ 423,1 million, increasing 5% above 20111
EBITDA of R$ 146.7 million, growth of 9% from 20111
Net Income of Controlling Shareholders before IFRS was R$ 86.2 million, increasing 11% from 20111
Growth of 57% of the portfolio balance compared to 2011
CrediPronto! originated mortgage loans worth R$ 1.5 billion in 2012, up 18% from 2011
Four companies acquired in 20122: LPS Foco, LPS Piccoloto, LPS Cappucci and Raul Fulgêncio
1) Ex-earn out
2) Considers acquisition of 51% stake in each company
5
9. Transactions Closed by Income Segment – Primary and Secondary Markets
Transactions Closed
R$ 18.2 billion R$ 19.0 billion
2011 2012
10% 8%
32% 36%
30%
34%
24% 26%
Units
63,171 units 58,923 units
2011 2012
8% 10%
14% 35%
17%
41%
37% 38%
<150 150-350 350-600 >600 9
10. Transactions Closed by Region – Primary and Secondary Market
Transactions Closed
2011 2012
5% 6%
5% 5%
11%
13%
7% 49% 51%
4%
23% 21%
São Paulo Brasília Nordeste
Rio de janeiro Sul Outros
10
14. CrediPronto!
2012
R$1,503MM in 4,825 Average LTV of Average Rate Average Period
Mortgages Contracts 59,14% of 9,5% + TR of 308 months
14
15. CrediPronto!
Financed Volume Financed Volume 9M12
(R$ MM) (R$ MM)
+17% +18%
440 1,503
376 1,271
4Q11 4Q12 2011 2012
In the fourth quarter of 2012, the CrediPronto! financed R $ 440 million, achieving an accumulated
volume of R$ 1,503 million in 2012, that means an increase of 18% compared to 2011
15
20. Gross and Net Revenue
Gross Revenue Net Revenue
(R$ MM)
484.2 (R$ MM) 432.4
Earn Out Itaú 31.3 +7% 31.3 +5%
Earn Out Itaú
452.9 482.7 401.1 423.1
146.0 -6% 130.3 -7%
7.8 7.8
138.1 130.0 122.5 114.0
4Q11 4Q12 2011 2012 4Q11 4Q12 2011 2012
In 2012 we have achieved R$ 423.1 million in net revenue.
20
21. Gross Revenue Reconciliation
2012 - Gross Revenue Reconciliation (R$ Million)
Contracted Sales (a) 18,981
Net Comission (b) 2.4%
Gross Brokerage
449.2
Revenue (a) x (b)
Revenue to Accrue from Itaú
14.5
Operations
Other revenues 19.0
Gross Revenue 482.7
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.
21
22. Results 2012
Results 2012 Before IFRS
(R$ thousand)
Launches Pronto! CrediPronto! Consolidated
Gross Service Revenue 351,830 106,838 24,049 482,717
Revenue from Real Estate Brokerage 337,330 106,838 24,049 468,217
Revenue to Accrue from Itaú Operations 14,500 - - 14,500
Earn Out - - - -
Net Operating Revenue 308,763 93,782 20,548 423,092
(-)Costs and Expenses (134,929) (57,666) (17,280) (209,875)
(-)Holding (48,823) (15,552) - (64,376)
(-) Stock Option Expenses CPC10 (1,164) - - (1,164)
(-) Expenses to Accrue from Itaú (953) - - (953)
(=)EBITDA 122,894 20,563 3,267 146,725
EBITDA Margin 40% 22% 16% 35%
(+/-) Other nonrecurring results - - - -
(-)Depreciation and amortization (13,302) (3,252) (57) (16,612)
(+/-) Financial Result 18,027 1,262 127 19,417
(-)Income tax and social contribution (31,412) (5,696) (562) (37,670)
(=)Net income before IFRS* 96,208 12,877 2,775 111,860
Net Margin before IFRS 31% 14% 14% 26%
(-) Non-controlling Shareholders (25,715)
(=) Net Income Attributable to Controlling Shareholders After IFRS 86,145
Net Margin Controlling Shareholders 20%
*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
22
23. Net Income 2012 by segment
Net Income from launches 2012 (R$ Thousand)
2,436
16,336
20,838 31%
30% 2,127
91,397 96,208
Launches Net Amortization of Earnout impact Non-cash Taxes over Launches Net
Income After IFRS intangible assets call/put effect intangible assets Income Before IFRS
Net Income from Pronto! 2012 (R$ Thousand)
7,437
20,637 35,441
38%
15,703
35,947 14%
12,877
Pronto! Net Amortization of Impairment Earnout Impact Non-cash Pronto! Net
Income after IFRS intangible assets call/put effect Income Before IFRS
23
28. Operational Expenses
Evolution of Operational Expenses*
(R$ MM)
+3%
267.3 276.4
+3%
75.0 76.9
4Q11 4Q12 2011 2012
28
* Does not consider IFRS
29. Operational Expenses
2012 Expenses Guidance*
(R$ MM)
+1%
260.0 263.5 276.4
11.5
0.9 263.5
0.5
2012 Expenses’ 2012 Adjust. 2012 Acquisitions Comissions Consulting Adjusted
Guidance Expenses and Costs Expenses and and Others (OBZ - Budget Costs and
and Costs Expansions Methodology) Expenses
29
* It doesn’t consider IFRS non cash effects
30. EBITDA
EBITDA*
Margin EBITDA¹(%)
(R$ MM)
165.1
Earn Out Itaú 30.1
+9%
146.7
134.9
(34.7%)
55.3 (33.6%)
Earn Out Itaú 7.5
-22%
47.8
37.1
(39.0%)
(32.5%)
4Q11 4Q12 2011 2012
* We consider the EBITDA, excluding other operating expenses (revenues), that considers IFRS non-cash, as the company
performance indicator 30
¹ The 2011 margin does not consider Itaú Earn Out net of taxes.
31. Net Income Attributable to Controlling Shareholders
Net Income Attributable to Controlling Net Income Attributable to Controlling
Shareholders before IFRS * (shareholders of LPB3) Shareholders After IFRS (shareholders of LPB3)
Net Margin¹ Net Margin¹
(R$ Million) (R$ Million)
105.5 142.6
28.2 118.3
28.2
+3%
+11%
86.1 56.8 114.5 118.3
35.0 77.3 (20%) 7.0 (28%)
(29%)
-34% (18%) 41.8
7.0 -16%
49.7 41.8
28.0 (41%)
(23%) 18.5 (37%)
(16%)
4Q11 4Q12 2011 2012 4Q11 4Q12 2011 2012
¹ The 2011 margin does not consider Itaú Earn Out net of taxes. 31
*We consider the net income ajusted by non cash IFRS 3 effects (Business Combination) the best net income indicator
32. Breakeven Point CrediPronto!
Breakeven Point CrediPronto!
365
4Q12 -92 193
3Q12 -2,375 -650
2Q12 -3,120
1Q12 -2,359
Oct-12 Nov-12 Dec-12
CredìPronto achieved breakeven point in nov/12, marking the moment the
operation became profitable
32
33. CrediPronto! P&L 2012
Total
Executed contracts 1,503,028
Opening portfolio 1,767,940
Closing portfolio 2,771,051
Average portfolio balance 1 2,069,854
Financial Margin 46,655
% Spread 2.3%
(-) Sales taxes -3,756
(-) Total dos custos e despesas -58,099
(-) Backoffice Expenses -14,193
(-) Sales Expenses -20,383
(-) Commissions paid -14,574
(-) Insurance and claims (+/-) -1,091
(+) Other revenues (Financ.) 288
(-) ADA -8,146
(-) IRPJ/CSLL (Itaú Balance) -6,636
(=) Net result -21,836
% Net Margin -50.90%
50% Profit Sharing -10,918
(+) Retention of Commissions 2,972
CrediPronto! Result (LPS) -7,946
1- Weighted average portfolio balance. 33
*2012 managerial P&L figures were reviewed by Ernst&Young and, as a result of their managerial nature, do not following accounting standards
34. CONTACTS
Marcello Leone IR
CFO and IRO Tel. +55 (11) 3067-0218
Tel. +55 (11) 3067-0015
E-mail: ri@lopes.com.br
www.lopes.com.br/ir
34