4q09 disclosure and results
TRANSCRIPT
March 25, 2010
4Q09 and 2009 Highlightsg g
Opening RemarksOpening RemarksCEO | Ricardo Valadares Gontijo
HistoryIPOIPOMarket in 2009: “Minha Casa, Minha Vida” ProgramStrategyDi i l G thDirecional Growth- Sales, Profits, Margins
View for the Future
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Recent EventsRecent Events
IPO – Initial Public OfferingTransaction completed in November 2009Listed in Novo Mercado of BM&FBovespaOffering proceeds of R$ 274 million, 100% primaryFree Float represents more than 39% of capital
Sh h ld B kd FundosShareholder Breakdown FiladélphiaParticipações S.A.1
Fundos administrados pela Tarpon2
Outros acionistas
60,7% 23,7% 15,6%
Tarpon2 Other
Free float = 39,3%
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1. Holding controlled by Mr. Ricardo Valadares Gontijo2. Funds Managed by Tarpon Investimentos S.A.
“Minha Casa, Minha Vida” ProgramMinha Casa, Minha Vida Program
Largest Housing Program in Brazil's history: R$ 34 billion to build 1 million housesDi i l h diff ti t d iti i t t k d t f th PDirecional has a differentiated positioning to take advantage of the Program
Differentiated PositioningGeographic Distribution of Benefits
DecentralizedProcess
DecentralizedProcess
Caixa Econômica Federal (“CEF”) has adecentralized approval processLong lasting relationship with CEF
10.3%
Regional ApproachRegional Approach The MCMV program has regional quotas
34.3%
7.0%
LimitedCompetition
LimitedCompetition
Limited competition from well capitalizedcompanies in regions where Direcional isoperating
36.4%
7.0%
CompetitionCompetition
PipelinePipeline
operating
43.763 units of the pipeline are eligible to
12.0%
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PipelinePipeline “Minha Casa, Minha Vida”Our verticallized Business model with high control of costs and
procces, alloows us to perform in all ranges of the Program
Land BankLand BankLand Bank of R$ 6,9 billion (R$ 4,7 billion % Direcional) with 57,522 unidadesLand Bank average cost of 7.5% of potential PSV and 72.4% acquired through swapLand Bank average cost of 7.5% of potential PSV and 72.4% acquired through swap
Land Bank Composition Large Scale Projects
AMPA
Status UnitsUnits to belaunched PSV to be launchProject
RO
MG
RO
DF
Manaus Total Ville AM Under construction 3,576 2,642 302.2
Total Ville Bella Città PA 4,049 3,561 380.2
Total Ville PA 5 712 5 188 562 9
Under construction
U d i95.3% of ourPSV
Total Ville Marabá PA 5,712 5,188 562.9
Allegro Total Ville AM 1,648 704 106.7
Santa M i DF 5,096 3,475 331.3
Under construction
Under construction
Under constructionPSV Breakdown per Segment Maria DF 5,096 3,475 331.3
Total Ville Porto Velho RO 2,428 1,938 172.2
Granjas Werneck MG Launching in
1H11E 15,000 15,000 1.500.0
Under construction
Under construction
Mid‐high
Commercial1.0%
Samambaia DF 14,614 14,614 1.584.0
52,123 47,122 4,939.4Total
Launching in 1H11E
1.1%
Medium16.7%
Popular81.1%81.2%
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“MINHA CASA, MINHA VIDA”43,763 units elegble programa
More than 76.1% of total Landbank
88% of the units comprise large scale projects17,546 units ready to be launched
LaunchesLaunches
Direcional PSV launched in 2009 reached R$ 783.3 million (Total PSV of R$ 921.6 million) with 9,360 unitsdistributed in 19 projects.
In 4Q09 868 units were launched with a PSV of R$ 89.7 million (R$ 80.9 million % Direcional)
Units Segmentation - 2009 Dispersion - 2009
320 3%
9,360
320.3%
Popular
Medium20%
North
Mid-west12%
2,227 5,359
2007 2008 2009
p79%
Mid-high1%
75%
Southeast13%
The average price of units launched in 2009 was R$ 98.5 thousand7,346 units (78.5%) are elegible for the “Minha Casa, Vinha Vida” Program
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Direcional is operating in all ranges of the program: 3,602 units in the range of 0-3 minimum wages
SalesSales
In 2009 we sold 7,824 units with total PSV of R$ 805.0 million (R$ 660.7 million % Direcional)Average sales speed in the quarter launch of 49 7%
Contracted Sales 4Q09 (R$ MN)Average sales speed in the quarter launch of 49.7%
Segmentation
84 7 137.3
38.4 24.2 675 units
1,106 units
+62.1%
84.7
4Q08 4Q09Direcional Partners
d
Dispersion
144 3 3 156 units7,824 units
Contracted Sales 2009 (R$ MN)
Mid‐west7%
441.2 660.7 164.8
144.3 3,156 units
+49.7%
Southeast13%
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2008 2009Direcional Partners
13%
InventoryInventory
Inventories at Market Value in 12/31/2009
PSV in Inventory (R$'000)
Units in Inventory% Units in Inventory
U d C t ti P j t 649 031 3 942 53 2%Under Construction Projects 649,031 3,942 53.2%Launches 4Q09 76,582 743 85.6%Launches 3Q09 215,892 1,322 29.6%Launches 2Q09 88,169 672 22.0%L h 1Q09 41 684 309 32 0%Launches 1Q09 41,684 309 32.0%Launches 4Q08 113,057 458 35.5%Launches 3Q08 58,712 251 15.1%Launches 2Q08 17,594 75 5.7%L h 1Q08 20 386 50 4 6%Launches 1Q08 20,386 50 4.6%Previous launches 1,654 62 5.7%Finished Projects 37,779 155 5.6%Total Inventory 686,810 4,097
Direcional closed the year 2009 with 155 completed units in stock with market value totals of R$ 37.8 millionTh j t d t ti l d h 74 1% f th i it ld
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The projects under construction already have, on average, 74.1% of their units sold
Financial ResultsFinancial Results
Net Revenue (R$ MN)
377.6
+ 43.5%
82.2115.6
263.2+ 40.6%
Gross Income and Gross Margin
4Q08 4Q09 2008 2009
g
106.6
127.3
39.0%35 0%
32.040.4
35.0%40.5%
33.7%
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4Q08 4Q09 2008 2009Gross Income (R$ MN) Gross Margin (%)
Financial Results – Cont.Financial Results Cont.
Sales Expenses Adjusted G&A ¹ (R$ MN) (R$ MN)
7,626 4,28515,197 15,347
4Q08 4Q09 2008 2009
5,93714,710 19,127
27,874
4Q08 4Q09 2008 2009
9.3%7.2%
7.5% 7.3%
3.7%
5.8%4.1%
6.2%
2 7%2.5%
1 9%
5.8%4.8%
5.4%
3.2%2.7%
2.7% 1.9%
4Q08 4Q09 2008 2009
% Net Revenue % Total Sales
4Q08 4Q09 2008 2009
% Net Revenue % Total Sales
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% Net Revenue % Total Sales
1. Adjusted for expenses (non‐cash) with the Stock‐Option Program of R$ 6.0 million recognized in the period.
Financial Results – Cont.
Adjusted Ebitda and Adjusted Ebitda Margin
Financial Results Cont.
78.3
105.8
19.1 31.0
23.3% 26.8%
29.7% 28.0%
4Q08 4Q09 2008 2009Adjusted Ebitda (R$ MM) Adjusted Ebitda Margin (%)
Adjusted Net Income and Adjusted Net Margin
64.4
85.1
j j g
12.525.1
15.3%21.7%
24.5%22.5%
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4Q08 4Q09 2008 2009Adjusted Net Income (R$ MN) Adjusted net margin (%)
Balance SheetBalance SheetCash and Cash Equivalents (R$’000) 2008 2009Loans and FinancingSFH 57,156 121,165
Caixa Econômica Federal 1,769 31,221Banco Santander / ABN AMRO Real 33,798 44,340Banco Itaú / Unibanco 12,629 37,029Banco Itaú / Unibanco 12,629 37,029Outher Banks 8,960 8,575
FINAME and others 0 2,133Total debt 57,156 123,298C h d C h E i l t 60 174 313 881Cash and Cash Equivalents 60,174 313,881Net Debt -3,018 -190,583Net Debt / Equity -1.00% -29.00%
Amortization Schedule (R$ MN) Cash Burn (R$ MN)
32 7
14.5
25.322.5
32.741.2
48.1
27.8
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1Q09 2Q09 3Q09 4Q09
6.2
2010 2011 2012 2013
Results To Be RecognizedResults To Be Recognized
Results to be Recognized (R$’000) 2008 2009 Chg%g ( $ ) gDeferred Revenues 325,683 579,201 77.8%Deferred Costs ‐183,497 ‐340,385 85.5%Deferred Results 142,186 238,816 68.0%Margin 43.7% 41.2% ‐2.4 p.p.
Recognition Schedule
65.6%
26.2%
8.3%
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2010 2011 2012+
DisclaimerDisclaimer
This presentation contains certain forward-looking statements concerning the business prospectsThis presentation contains certain forward looking statements concerning the business prospects,projections of operating and financial results and growth potential of the Company, which are based onmanagement’s current expectations and estimates of the future performance of the Company. Although theCompany believes such forward-looking statements are based on reasonable assumptions, it can give noassurance that its expectations will be achieved. Expectations and estimates that are based on the futureprospects of the Company are highly dependent upon market behavior, Brazil’s political and economicsituation, existing and future regulations of the industry and international markets and, therefore, aresubject to changes outside the Company’s and management’s control The Company undertakes nosubject to changes outside the Company s and management s control. The Company undertakes noobligation to update any information contained herein or to revise any forward-looking statement as a resultof new information, future events or other information.
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ContactContact
Investor Relations Department
Daniel AmaralCFO
Paulo TropiaIR Analyst
Lucas BousasIR Analyst
www.direcional.com.brri@direcional com [email protected]
(55 31) 3235-4607