cyrela - corporate presentation - march 2009
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1
NOVAMERICASão Paulo, SP
Launched in March 2009
Company PresentationMarch 2009
2
Company Highlights
Financial Information
Appendix
Agenda
Escritório SantanaSão Paulo, SPLaunched in March 2009
2009 Update
3
1Q09 Update
Barra Prime OfficeRio de Janeiro, RJLaunched in November 2008
4
Continuous improvement in the real estate market
Good market response to launchesNovAmérica: R$ 278 million PSV - 69% sold to dateEscritórios Santana: 78% soldMérito Vila Curuçá: 85% soldApril/2009: L’Acqua – Natal/RN:1st launch in RN - 46% soldApril/2009: Ventura Ecoville – Curitiba/PR: 65% sold
Government Housing Program “Minha Casa, Minha Vida”News on LivingLaunches in the near futureIncreased participation of economic projects in Cyrela’s portfolio
Increased limits for SFH and FGTS eligibility: increase in debt transfers and sales
Aquisition of Goldsztein3rd JV partner acquiredWork model to be implemented similar to that of RJZ Cyrela, in RJCurrent Goldsztein Officers will remain in charge of the Southern Region UnitIncrease of Cyrela’s participation in the 100% figuresDue diligenceTo be concluded until June, 2009
Current Panorama
5
News on Living
Southern region
Minas Gerais
Bahia
Northern region
Pernambuco
Espírito Santo
Ceará
Rio de Janeiro
Rio Grande do Norte
Living’s Nationwide Activity
São Paulo
Independent ActivityNew HeadquartersSeparate Accounting100% CyrelaIndependent activity in all steps of the business:
Land acquisitionReal Estate DevelopmentSalesConstructionCustomer Relationship
Organic operation and in partnership with JVsCFC correspondent servicing all Brazilian
regions
6
Construction
Living Construtora
Use of “Lean Construction” ConceptSimple projects, easily executed, with repetitions, standardized and focused on managementAssembly lineReduction of wastes and costsIncreased productivity during works executionIncreased construction qualityIncreased flexibility of requirementsFlexibility of works execution scheduleIncreased costumer satisfaction
Enhancement of construction methods for popular housingProduct blueprint definition developed together with supplies
Land bought to fit the product
Price defined by product (not by sq.m.)
In-house and trained labor
15% cost reduction expected
7
Launches in the near future
Launches scheduled for the next months show more than 2 thousand units eligible to the Government Housing Program “Minha Casa, Minha Vida”
40%32,246 191 169 Curitiba – PRVentura Ecoville
71%31,646 236130 São Paulo – SPFatto Jardim Botânico
Rio de Janeiro – RJ
Ferraz de Vasconcelos – SP
São Paulo – SP
Guarulhos – SP
São Paulo – SP
São Paulo – SP
Porto Alegre – RS
Porto Alegre – RS
Campinas – SP
Region
3,060
380
200
400
277
396
252
286
214
228
Number of UnitsProject
Average Price of Unit (R$
thd)
PSVEstimate (R$ thd)
% Cyrela
Fatto Mansões 215 48,953 92%
Tumelero 132 28,159 50%
Arboretto – phase 2 154 44,097 50%
Dez Curuçá 83 20,916 50%
Vitoria Pirituba 87 34,435 60%
Fatto Sport Faria Lima 118 32,816 79%
Avanti Parque São Lucas 115 45,951 40%
Parque dos Sonhos - phase 4 80 15,953 50%
Liber Park 112 42,453 75%
Total 123 377,625 61%
8
Living’s launches in the quarter
Avanti GuarulhosLaunched in Mar/2009PSV: R$ 37.7 millionUnits: 279Average price: R$ 135 thd/ un
Condomínio Brisas LifeLaunched in Mar/09PSV: R$ 50.4 millionUnits: 300Average price: R$ 168 thd/ un.
São Luís - MA
São Paulo - SP
Most of the projects in the quarter were launched in March
55% sold
100% sold
Vivace Residencial Clube1st phaseLaunched in Mar/09PSV: R$ 23.0 millionUnits: 155Average price: R$ 148 thd/ un.
Fortaleza - CE10% sold
Mérito Vila CuruçáLaunched in Jan/2009PSV: R$ 21.8 millionUnits: 197Average price: R$ 111 thd/ un.
São Paulo - SP
85% sold
Economic Project
Economic Project Economic Project
Mid-low Project
9
Living launches and pre-sales – 1Q09
Average sales speed
Launchesin R$ million
Pre-sales in R$ million
190
88
269
133
1Q08 1Q09
Cyrela Partners
16679
234
122
1Q08 1Q09
Cyrela Partners
-51% -48%
26%
35%
41%
63%
53%
9%
18%
21%
32%
3%
2%
26%
44%
66%7%
1%
2%
89%
88%
1Q09
4Q08
3Q08
2Q08
1Q08
In 3 months In 6 months In 9 months In 12 months
10
18,858
17,867
22,309 3,628 62,662
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Up toR$ 100 thd
From R$ 100 thd to
R$ 130 thd
From R$ 130 thd to
R$ 200 thd
From R$ 200 thd to
R$ 350 thd
Total
Living’s landbank – 1Q09
Landank by unit price
By Region By Segment
Obs.: Calculations in units
Potential PSV: R$ 8.5 billion (100%)
or R$ 6.1 billion (% Living)
93 Plots of land
Swaps: 66%
Middle6%
Economic70%
Super Economic
24%
South18%
Southeast65%
Northeast14%
North3%
11
OperationalResults
Reserva VerdeSerra, ESLaunched in March 2009
12
Cyrela’s Launches in 1Q09
NovAmérica Office ParkLaunched in March/09PSV: R$ 195.1 millionUsable area: 32,979 sq.m.Units: 548
AbsoluttoRe-launched in January/09PSV: R$ 30.7 millionUsable area: 9,405 sq.m.Units: 132
Novo Hamburgo - RS
São Paulo - SP
In January 2009, Absolutto, a project in Novo Hamburgo (RS) was re-launched and 65% sold
63% sold
65% sold
Escritórios SantanaLaunched in March/09PSV: R$ 53.4 millionUsable area: 9,016 sq.m.Units: 224
São Paulo - SP78% sold
NovAmérica Colorado Residence ParkLaunched in March/09PSV: R$ 82.6 milionUsable area: 24,961 sq.m.Units: 216
São Paulo - SP
88% soldOffice Project
Office Project
Medium Standard Project
Medium Standard Project
13
581416
811
554
1Q08 1Q09
Cyrela Partners
Launches
Launches by region and by brand – 1Q09
-32%
Launches – in R$ million
9 projects launched in 1Q09
(vs. 19 in 1Q08)
Chronology of launches in the quarterJanuary: Absolutto in RS (re-launch) andMérito Vila Curuçá – Living in SP;March:3 Living launches in Guarulhos – SP, São
Luis – MA and Fotaleza – CE.;Escritórios Santana, NovAmérica Office Park, Novamerica Residencial Colorado in SP, and Reserva Verde in Serra – ES.
1Q09 Launches: average price of R$ 244 thd
/unit or R$ 3.6 thd /sq.m.
LIVING: 24% of 1Q09 launchesCyrela76%
Living24%
SP71%
RJ0%
Expansion29%
14
778
346
1,125
502
1Q08 1Q09Cyrela Partners
Pre-sales
Pre-Sales – in R$ million
Pre-Sales by region and by brand – 1Q09
-55%
1.7 thousand units sold
Average price of R$ 284 thd/unit or
R$ 3.5 thd/sq.m.
Living: 24% of 1Q09 sales
Seller and Selling accounted for 51% of
quarter’s sales, or 56% considering only
the markets where they operate
Cyrela76%
Living24%
SP59%
RJ13%
Expansion28%
15
55.4%
41.6%
27.7%
15.2% 12.6%
2Q08 3Q08 4Q08 1Q09 12M
Sales speed – Cyrela + Living
Launches Sales Speed
1Q09 Sales according to launch periodR$ million–Cyrela’s share
VSO by quarterR$ million –Cyrela’s share
35%
31%
41%
67%
47%
8%
13%
10%
32%
2%1%
2%
35%
40%
59%
80%
79%
6%
1Q09
4Q08
3Q08
2Q08
1Q08
Launches In 3 months In 6 months In 9 months In 12 months
153116
42 29 4 1
44% 33%12% 8% 1% 0%
1Q09
laun
ches
2008
laun
ches
2007
laun
ches
2006
laun
ches
2005
laun
ches
Laun
ches
befo
re20
05
Pre-sales contracts % CBR % of 1Q09 pre-sales
16
Sales performance
Obs.: cálculo em unidades.
Up toR$ 100 thd
From R$ 100 thd to
R$ 130 thd
From R$ 130 thd to
R$ 200 thd
From R$ 200 thd to
R$ 350 thd
From R$ 350 thd to
R$ 500 thd
From R$ 500 thd to R$ 1 million
AboveR$ 1 million TOTAL
2006 98% 99% 92% 98% 89% 82% 61% 88%1Q06 100% 99% 100%2Q06 100% 100% 85% 74% 90%3Q06 97% 100% 90% 79% 94% 90%4Q06 98% 99% 91% 88% 86% 82% 45% 84%
2007 95% 89% 87% 85% 78% 88% 91% 87%1Q07 94% 95% 92% 98% 83% 94%2Q07 98% 99% 100% 84% 97%3Q07 96% 95% 95% 69% 79% 99% 91%4Q07 95% 88% 79% 79% 76% 90% 89% 84%
2008 75% 85% 78% 66% 63% 72% 58% 74%1Q08 63% 96% 93% 74% 71% 85% 75% 85%2Q08 99% 99% 85% 100% 90% 65% 90%3Q08 68% 99% 76% 61% 68% 96% 49% 71%4Q08 100% 56% 48% 73% 33% 14% 53%
2009 62% 19% 34% 45% 35%1Q09 62% 19% 34% 45% 35%TOTAL 84% 87% 79% 77% 71% 83% 70% 79%
Price per unit
Laun
ch p
erio
d
17
Units Delivered
Units Delivered
Units net of swaps
Large projects delivered: Paulistânia (SP) and Les Residences de Monaco (RJ).1.3 thousand units delivered in the first three months of 2009.94% of units delivered were sold.12 thousand units forecast to be delivered in 2009.Currently: 142 construction work sites throughout the country.
2,2113,178
1,266
12,000
2007 2008 2009e
1Q09 Units delivered and foreseen
18
Debt Transfer
41.2
9.9
2.4
9.4
6.2
2.8
10.5
Debt Transfer
Total in R$ million
ProjectsUnit
Average Price
Debt Transfer in
units
VEREDA IPIRANGA R$ 400 thd 71
GRAND LIFE SAÚDE R$ 400 thd 20
HUMANARI R$ 400 thd 27
PATEO POMPEIA R$ 480 thd 48
SARAU PINHEIROS R$ 500 thd 7
PAULISTÂNIA R$ 600 thd 29
Total 202
Debts transfers
Property to be financed by SFH:
Increase of price limit from R$ 350 thd/unit to R$ 500 thd/unit
Increase of price limit for eligibility of use of FGTS funds to R$ 500 thousand
Increase of percentage financed from 70% to 90% of the unit value up to R$ 500 thousand
Increase in demand for units in point of sales and in the Internet
Increase of debt transfer of delivered units previously forecast to be financed by Cyrela
19
SFH Financing
SFH Financing
R$
billi
on
Closer relationship with Caixa Econômica Federal (CEF)R$ 243 million were contracted in 2009
R$ 357 million will be signed soon
Amount forecast to be contracted until July/2009: R$500 million
Growth of debt transfersDebt transfers totaled R$41 million in 1Q09
R$67 million of debt transfers being done
Debt transfers forecast until July/2009: R$109 million
Balance due in March 31, 2009: R$799 million
Balance due: 0.8
Credit limit 8.1
Amount available
3.8
Contracted 4.3
20
Landbank
Potential PSV: R$ 38.6 billion (100%) or R$ 30.6 billion (% Cyrela)
Units in landbank: 138 thousand
193 plots of land – 69 of which outside the SP-RJ region
Swaps achieving 72%
Geographical distribution in March 31, 2009
SP31%
RJ39%
Expansion31%
Argentina0.3%
Nothern region3.2%
Southern region5.1%
São Paulo inlands11.1%
Rio de Janeiro38.7%
São Paulo Capital City
19.5%
Northeast19.9%
Minas Gerais0.4%
Espírito Santo1.8%
Southeast71.5%
21
Landbank in units
126 thousand units elegible through SFH
27%
up
to R
$ 13
0 th
d
91%
up
to R
$ 50
0 th
d
unitsin landbank
18,85817,867
37,219
32,93118,766 4,955 6,698 1,013 138,307
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Up toR$ 100 thd
From R$ 100 thd
to R$ 130 thd
From R$ 130 thd
to R$ 200 thd
From R$ 200 thd
to R$ 350 thd
From R$ 350 thd
to R$ 500 thd
From R$ 500 thd
to R$ 600 thd
From R$ 600 thd
to R$ 1,200
thd
Above R$1,200 thd
Total
22
Financial Results
Mérito Vila CuruçáSão Paulo, SP
Launched in March 2009
23
Financial Results – in R$ million
Net Revenues
Gross Income Backlog
+22%
+15%
- 4%
550.8
671.5
1Q08 1Q09
Net Revenues
219.5 252.1
37.5%39.8%
1Q08 1Q09
Gross Profit Gross Margin
4,081.7
5,124.2 4,920.6
37.2%36.2% 37.1%
2007 2008 1Q09
Revenue to be Recog. Gross Mg. To be Recog.
24
+47%
Financial Results – in R$ million
Expenses on Pre-Sales Contracts
EBITDA
Expenses on Net Revenues
+60%
Net Profit
94.5
151.2
22.5%
17.2%
1Q08 1Q09
EBITDA EBITDA Margin
68.5
100.5
12.4% 15.0%
1Q08 1Q09
Net Profit Net Margin
6.6%4.6%
7.6%
14.5%
10.9%
4.3%2.6%
5.6%
9.6% 9.5%
1Q08 2Q08 3Q08 4Q08 1Q09
Selling Expenses Gen. & Admin. Expenses
12.6% 12.1% 11.6% 11.6%
7.8%
8.3%6.7%
8.5% 7.6% 6.8%
1Q08 2Q08 3Q08 4Q08 1Q09
Selling Expenses Gen. & Admin. Expenses
25
Accounts receivable – in R$ million
Accounts receivable performance(R$ milion)
Units under construcion
Units build
Construction cost to Incur - sold
Remuneration of receivable(R$ million)
Receivable schedule (R$ million)
Finished units: IGP-M + 12% p.a.Under construction: INCC
7,685
5,618
7,681
2007 2008 1Q09
Receivables
6,854
8317,685
3,095
1,6321,452944
513 475 423 387 350 301
1,209
2009 2010 2011 2012 2013 2014 2015 2016 2017 Until2028
26
Liquidity
1,372.9Net Debt with SFH
1,300.1Total Debt without SFH
TR + 10.5% a 12.0% a.a.2009 to 2014798.5SFH
Libor + 3.5%Sep/201146.3Loans – foreign currency(US$ 20 million)
CDI + 0.81% a.a.Nov/2010, Nov/2011, Nov/2012, Nov/2013264.3Bradesco (stand-by) and others
Debt(R$ million)
Balance onMarch 31
2009Maturity Cost
Debentures 1st issuance 500.0 2012, 2013, 2014 CDI + 0.48% a.a.
Debentures 2nd issuance * 489.5 2018 CDI + 0.65% a.a.
Total Debt with SFH 2,098.6
Cash and Cash Equivalents (725.7)
Net Debt without SFH 574.3
Net Debt with SFH
LTM EBITDA= 2.4 times
* Repactuation in 2010 and 2011
Net debt without SFH
LTM EBITDA= 1.0 time
27
Delays and Cancellations
Delays
Cancellations
Obs.: Taking into consideration only clients portfolio managed by Cyrela
1.09%1.34% 1.43% 1.35% 1.38%
1.52%1.64%
2.00%
1.92%
1.43% 1.37% 1.39%
1.79%1.59%
1.26%
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-0
8Ju
l-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Delays above 31 days
0.21% 0.20%0.23%
0.26%
0.23%0.22%0.22%0.23%
0.26% 0.27%
0.14%
0.17%
0.18%0.20%
0.07%
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Cancellation index = cancellations / active clients
28
HousingHousing ProgramProgram
Minha Casa, Minha VidaMinha Casa, Minha Vida
29
The program
Total number of houses to be built by wage range:
The price of the property to be financed varies according to the region as follows:
Maximum unit price for the 3 to 6 wages range is R$ 100 thd.
R$ 80 thdOther municipalities
R$ 100 thdMunicipalities with more than 500thd inhabitantsand other capital cities and metropolitan regions
R$ 130 thdSP, RJ and FD Metropolitan Regions
AmountMunicipality
7%Midwest200 thd6 to 10 MW
10%North100 thd5 to 6 MW
12%South100 thd4 to 5 MW
34%Northeast200 thd3 to 4 MW
37%Southeast400 thd0 to 3 MW
Houses per regionNumber of housesMinimum Wages
30
General Terms and Conditions
Deposit Guarantee Fund: loss of income and deliquency3 to 5 wages: 36 installments5 to 8 wages: 24 installments8 to 10 wages: 12 installments
Terms and Conditions:Effectiveness: contract term, after payment of 6 installmentsMinimum Payment: 5% of the summ of the installmentsPayment to the fund: 0.5% of the installment
Decrease in notary expenses for the customer:0 to 3 minimum wages: no cost. 3 to 6 minimum wages : 90% decrease6 to 10 minimum wages: 80% decrease
Decrease in notary expenses for the developer:Property up to R$ 60 thd: 90% decreaseProperty up to R$ 80 thd : 80% decreaseProperty up to R$ 130 thd: 75% decrease
31
Up to 3 Minimum Wages = R$ 1,395
Program detailsCapital cities and metropolitan regions, municipalities with more than 100
thousand inhabitants, and in special cases municipalities with 50 to 100 thousandinhabitants, according to their housing deficit.
No project delivery insuranceHouses or apartmentsUp to 500 units per module or 250 unit condos.
Pre-defined blueprintsBlueprint 1 – Ground houses – 32 sq.m. of usable areaBlueprint 2 – Apartment – 37sq.m. of usable area
Eligibility for buyingNot having benefitted previously from any government social housing programNot owning a private house and not having a financing contract in any other StatePayment of 10% of the income for 10 years, with minimum installment of R$ 50,00,
corrected by TR and register of the property by the wifeNo down payment and no payents during constructionNo charges for insurances (death and permanent disability or physical damage of
the property)
32
Contract detailsUpfront payment of the landFund transfer according to construction works development (24 hours after
work site check)No insurance for completion of worksSpecial Tax Regime– (PIS, COFINS, CSLL and IRPJ from 7% to 1%)No marketing expenses, once CAIXA is responsible for salesNo advertising expensesPre-defined price – SINAPI table (currently being discussed) + not included
items (BDI, project, construction site, among others)
555.00 Minimum
653.00 Low
909.00 Normal
Cost/sq.m. (R$)Standard
SINAPI table – Esimated cost for a typical blueprint: one story house (strip foundation) including living room, 2 bedrooms, corridor, bathroom and kitchen. Usable area: 34,32 sq.m.
Up to 3 Minimum Wages = R$ 1,395
33
Feasibility AnalysisCost reductionTaxes –5.5% related to PIS and CONFINS on the revenue. According to the
new rule, it is possible to extinguish this charge and even have a furtherdiscount of 0.5% (totaling 6%)
ITBI – it is usually around 2% of the land value (sale value). For thissegment, ITBI usually represents 8% of the PSV. This represents a reduction of 0.16% of the PSV.
Commercial expenses: reduction of 7.5%
Estimate reduction in sales price:
13.66%13.66%TotalTotal
4.00%Advertising
3.50%Brokerage Fees
0.16%ITBI
6.00%Taxes
% of PSV (reduction)Item
Up to 3 Minimum Wages = R$ 1,395
34
Construction works financing agreements :Financing of 100% of the construction cost with advanced transfer of up to 10% of
the total cost or land cost (whichever is lower)30% sold or 20% of units financed by CEF or according to sales speed analysis (15%)Transfers according to construction works developmentInterest rates: 8% p.a. + TRTAO: 1.5% of the amount transferredConstruction work completion insurance (0.6% of the work cost) and engineering
risk
Guarantees:Guarantee by the owner of the construction company/RE developerMortgage of the units– 1.3x the amount financed.Payment term up to 24 months after completion of construction worksDuring construction works: payment of interestsRequirement of insurance for completion of construction works and for engineering
risksMaximum of 500 units per module
From 3 to 10 minimum wages: from R$ 1,396 to R$ 4,650
35
Eligibility for buying:Not having active financing contract with SFHNot being granted any discount by FGTS since May 1st 2005 when signing
a housing financing contractNot being the owner, assignee, promissory buyer or not having the right of
acquisition of any other urban or rural residential property at the domicileregion or in the region where the domicile is intended to be established
SAC and PRICE tablesPercentage of total income assigned for payments: 20%Payment term: up to 30 yearsFinancing up to 100% of the property priceOptional down payment
0.68%8.47%8.16%6 to 10 MW
0.50%6.17%6%5 to 6 MW
0.42%5.16%5%3 to 5 MW
Interests(p.m.)
EffectiveInterests
(p.a.)
Nominal Interests
(p.a.)
Wagesrange
From 3 to 10 minimum wages: from R$ 1,396 to R$ 4,650
36
The table below shows the general requirements – Ref. SP, RJ, FD and metropolitan regions:
From 3 to 10 minimum wages: from R$ 1,396 to R$ 4,650
1.5% a 6.64%
1.5% a 6.64%
1.5% a 6.64%
1.5% a 6.64%
1.5% a 6.64%ExemptExemptExemptInsurance (% of
installment)
0.68%0.68%0.68%0.68%0.50%0.42%0.42%0.42%Rate (p.m.)
8.47%8.47%8.47%8.47%6.17%5.12%5.12%5.12%Effective Rate (p.a.)
8.16%8.16%8.16%8.16%6.00%5.00%5.00%5.00%Nominal Rate (p.a.)
360360360360360360360360Term (months)
124,000 111,000 99,000 87,000 94,000 95,000 84,000 74,000 Purchasing power
----2,000 9,000 16,000 23,000 Maximum subsidy
124,338 111,904 99,471 87,037 92,529 86,047 68,837 51,628 Maximum amount to be financed
920 828 736 644 552 460 368 276 Max. Amount ofinstallments (20%)
4,600 4,140 3,680 3,220 2,760 2,300 1,840 1,380 Wages
10 MW9 MW8 MW7 MW6 MW5 MW4 MW< 3 MW
New range accepted
37
Infrastructure
CharacteristicsFinancing up to 100% of the total costAdvancement of 10% of the total cost at the signature of the contractFunds from the Union available for subsidies: R$ 5 billion
GuaranteesGuarantee by the developersMortgage or deed of trust for the unsold unitsLien of the creditory rights related to the units soldBank guarantee
TermGrace period: up to the completion of construction works, limited to 18 monthsPayment: 36 months
RatesTJLP + 1% p.a.
38
General Details
Environmental Lincenses: faster and simpler. A Resolution to be passed by CONAMA by theend of April defines:
Uniform and simplified procedure for granting of environmental licenses for projectsoccupying areas up to 100ha or 1.000.000 sq.m.
Single license for the whole projectMaximum of 30 days for environmental license grantingUnified criteria for all federal entities
Engineering analysisDecrease from 225 to 30 items to be analyzedBrazilian norms and environmental lawsAcceptance of projects analyzed in other regions, respecting local legislation and
new implementation requirements.
Approval by CAIXACycle lowered from 120 to 45 days.Approval of credit granting to the client in up to 15 days (previously: 30 days)
39
YearlyFinancial
Information
Acqua VerdeCuritiba, PRLaunched in December 2008
40
2007
1,597.1
4,515.2
(26.3)
1,476.9
(2,604.7
4,081.6
(2,030.3)
36.2
R$ million
Sales to be recognized at the beginning of the period
Net sales recorded in the period
Revenues recognized in the period
Sales to be recognized at the end of the period
Cost of units sold to be recognized
Selling Expenses
Gross profit to be recognized
Percentage of gross profit
2008
4,081.6
3,974.4
(37.6)
1,906.9
(3,217.2)
5,124.1
(2,930.8)
37.2%
Pre-Sales to be Recognized
1Q09
5,124.2
481.9
(16.4)
1,809.1
(3,095.1)
4,920.6
(685.0)
37.1%
41
633.7 695.8 708.4
1,707.3
2,667.1
4Q07 3Q08 4Q08 2007 2008
Net Revenues
Financial Results – in R$ million
Net Revenues
Gross Income Backlog
+56%
+2%
+25%+52%
+12%
254.2 294.2 258.6
703.2
1,070.7
42.3%40.1%
36.5%40.1% 41.2%
4Q07 3Q08 4Q08 2007 2008
Gross Profit Gross Margin
4,081.7
5,124.2
37.2%36.2%
2007 2008Revenue to be Recog. Gross Mg. To be Recog.
42
Financial Results– in R$ million
Expenses on Pre-Sales Contracts
EBITDA
Expenses on Net Revenues
+37%
+2%
3.8%5.6% 4.6%
7.6%
14.5%
4.6%6.7%
2.5%4.0%
2.6%
5.6%
9.6%
3.0%4.4%
4Q07 1Q08 2Q08 3Q08 4T08 2007 2008
Selling Expenses Gen. & Admin. Expenses
110.7 151.4 112.4
390.5
535.9
21.8%
15.9%
20.1%17.5%
22.9%
4Q07 3Q08 4Q08 2007 2008
EBITDA EBITDA Margin
13.6%11.3% 12.1% 11.6% 11.6% 11.9% 11.7%
8.9% 8.1%6.7%
8.5% 7.6% 7.7% 7.7%
4Q07 1Q08 2Q08 3Q08 4Q08 2007 2008
Selling Expenses Gen. & Admin. Expenses
43
91.4 72.4 89.0
311.5366.5
13.7%10.4%18.2%14.4% 12.6%
4Q07 3Q08 4Q08 2007 2008
Adjusted Net Profit Adjusted Net Margin
Financial Results – in R$ million
Adjusted Net Profit
+18%
Adjusted in 2007 for the valorization of investiment in Agra
-3%
44
Appendix
Barra Prime OfficeRio de Janeiro – RJLaunched in Nov/08
45
1.9 1.9 1.8 2.2 3.0 4.9 9.318.3
30.0 30.8
3.3 2.7 3 2.8 3.95.5
7.0
6.9
10.5
5.2 4.6 4.8 5.0 6.910.4
16.3
25.2
40.645.8
15.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009e
SBPE FGTS
0
100
200
300
400
500
600
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
e
SBPE FGTS
Mortgage Credit Available
Mortgage Loans Funding (in R$ billion)
Source: ABECIP, Central Bank of Brazil and Secovi
65%
111%
73%
20%53% 46%
13% 10% 2% 2% 8% 6% 9%
249%
166% 156%141% 137% 125%
63%46% 37% 35% 33% 28% 17%
-20%
30%
80%
130%
180%
230%
280%
USA
Neth
erla
nds UK
Sout
h Af
rica
Irela
nd
Spai
n
Chile
Hung
ary
Indi
a
Braz
ilCz
ech
Rep.
Pola
nd
Mex
ico
Mortgage credit to GDP Ratio Total Credit to GDP
Mortgage to GDP Ratio
Source: Central Bank and Bradesco Corretora
CAGR 2003-2009e: 45%
Source: ABECIP, Central Bank of Brazil and Banco Real
Mortgage LoansRecord = 627.000 in 1980
CAGR 2003-2009e: 18%
Con
trac
ts(th
ousa
nds)
Housing Program“Minha Casa, Minha Vida” (in R$ billion)
Source: Programa “Minha Casa, Minha Vida”
34.0
7.5
25.5
1.0
FEDERALBUDGET
FGTS BNDES TOTAL
46
Demand in Expansion
São Paulo Rio de Janeiro
Source: SECOVI-SP/EMBRAESP Source: ADEMI-RJ
Supply to Sales - 12 month curve in units
Porto Alegre Fortaleza
Source: SINDUSCON-CE/FIECSource: SINDUSCON-RS
Supply to Sales - 12 month curve in units
Supply to Sales - 12 month curve in units
Supply to Sales - 12 month curve in units
Jun-084.6
Jan-095.9
Apr-0213.8
Mar-0610.0
Dec-0011.6
Apr-0311.9
Jan-0512.2
Jun-076.4
Dec-00
Apr-01
Aug-01
Dec-01
Apr-02
Aug-02
Dec-02
Apr-03
Aug-03
Dec-03
Apr-04
Aug-04
Dec-04
Apr-05
Aug-05
Dec-05
Apr-06
Aug-06
Dec-06
Apr-07
Aug-07
Dec-07
Apr-08
Aug-08
Dec-08
Supply to sales
Dec-0817.4Jul-08
13.9Jun-04
14.1 Sep-0710.5
Aug-0518.7
Sep-069.5
Jan-0515.6 Dec-05
12.2Feb-08
12.3Feb-0710.4
Jun-0
4Sep
-04Dec
-04Mar-
05Ju
n-05
Sep-05
Dec-05
Mar-06
Jun-0
6Sep
-06Dec
-06Mar-
07Ju
n-07
Sep-07
Dec-07
Mar-08
Jun-0
8Sep
-08Dec
-08
Supply to sales
Mar-9819.1 Dec-06
15.2
Aug-0524.2
Aug-0423.8
37,622.015.8Jan-01
12.8Apr-9910.7
Dec-9616.9
fev-097.4
Dec-96
May-97
Oct-97
Mar-98
Aug-98
Jan-9
9Ju
n-99
Nov-99
Apr-00
Sep-00
Feb-01
Jul-0
1Dec
-01May
-02Oct-
02Mar-
03Aug
-03Ja
n-04
Jun-0
4Nov
-04Apr-
05Sep
-05Feb
-06Ju
l-06
Dec-06
May-07
Oct-07
Mar-08
Aug-08
Jan-0
9
Supply to sales
Aug-0715.8
Jun-0620.0
Jan-0618.3Jan-04
17.4
Apr-0224.9Dec-99
21.8Jan-01
15.4 Feb-0912.1
Dec-99
May-00
Oct-00
Mar-01
Aug-01
Jan-0
2Ju
n-02
Nov-02
Apr-03
Sep-03
Feb-04
Jul-0
4Dec
-04May
-05Oct-
05Mar-
06Aug
-06Ja
n-07
Jun-0
7Nov
-07Apr-
08Sep
-08Feb
-09
Supply to sale
47
Sales Performance – Residential – 2008
Source: Cyrela MID
São Paulo Rio de Janeiro
9% 12% 17% 20%
Cyrela’s stakes indicate strong sales performance in the main markets
Launches Pre-Sales Launches Pre-Sales
(R$ million) (R$ million)
4,123
720
Launches in RJ
1,949
384
Pre-Sales in RJ
MarketCyrela
40,520
4,794
Pre-Sales in SP
65,833
6,050
Launches in SP
MarketCyrela
48
Potential Sales Value (R$ million)
Launches 2004 to 2008 - SP Metropolitan Region
Units
Luxury > R$ 3,500/m²
Super-Economic < R$ 1,900/m²
Economic > R$ 1,900/m², <2,700/m²
Middle > R$ 2,700/m², <3,500/m²
11,314 8,449 8,371
8,937 12,721
28,9875,30710,129
18,864
4,051
9,611
28,78234,345 35,350
58,512
65,833
10,88411,821
21,52410,269
19,074
8,567
7,030
3,688
3,224
2004 2005 2006 2007 2008
1,098 753 760
1,803 2,6884,154
1,977
3,894
5,626
3,939
7,282
7,9979,607
11,274
17,422 17,822
9721,117
4,0721,928
7,326
3,242
5,052
3,320
3,119
2004 2005 2006 2007 2008
Source: Cyrela MID
49
Launches 2004 to 2008 - RJ and Region
Luxury > R$ 3,500/m²
Super-Economic < R$ 1,900/m²
Economic > R$ 1,900/m², <2,700/m²
Middle > R$ 2,700/m², <3,500/m²
Potential Sales Value (R$ million)Units
907 5062,4491,142 3,080
4,559
1,141
2,511
4,484
1,734
4,419
6,856 7,0197,831
13,350
15,911
1,171 1,302
2,680
5,8001,677
3,885
3,6661,491
2,363
2004 2005 2006 2007 2008
221 69 211200 659
791273
690
1,225
1,729
1,894
1,353
2,354
3,1473,446
4,121
219203
980759
975
509
1,272
883
659
2004 2005 2006 2007 2008
Source: Cyrela MID
50
Excellent Track Record of Growth
Consistent track record of growth in Launches and Pre-sales Contracts
Launches (in R$ million) Pre - Sales Contracts (in R$ million)
2004 – 2008 CAGR = 49%
2004 – 2008 CAGR = 48%
972 1,211
2,917
5,3934,827
3,3323,4281,924
1,004700
2004 2005 2006 2007 2008
Cyrela Partners
949 1,0231,915
4,392 4,612
713 7551,369
2,815 3,074
2004 2005 2006 2007 2008
Cyrela Partners
51
Cyrela Brazil Realty
*Adjusted for IPO expenses and according to BR GAAP before Law 11,638
EmployeesSeller Brokers & Team
Number of cities
Launches (Full Year)Pre-sales (Full Year)LandbankLow income units
Market Cap Cyrela Brazil Realty# Homebuilders listed
Market Cap of the Industry
Baixa RendaEBITDA Margin*Baixa RendaGross Margin
Baixa RendaNet Margin*
2005
202
100
3
R$ 1.2 bn
R$ 1.0 bn
3.0 mn sq.m.
0
R$ 2.4 bi
2
R$ 6.0 bi
524.427.1%
524.448.5%
524.423.2%
2007
529
743
47
R$ 5.4 bn
R$ 4.4 bn
8.8 mn sq.m.
6.7 thd
R$ 8.6 bi
21
R$ 48.1 bi
688.822.9%
688.841.2%
688.824.7%
2006
327
200
8
R$ 2.9 bn
R$ 1.9 bn
4.9 mn sq.m.
720
R$ 4.5 bi
4
R$ 10.0 bi
688.822.3%
688.842.2%
688.821.7%
2008
514
637
55
R$ 4.9bn
R$ 4.7bn
11.2 mn sq.m.
10.5 thd
R$ 3,3 bi
20
R$ 13,4 bi
688.820.1%
688.840.1%
688.813.7%
52
Joint Ventures
2008Middle / Mid-HighSão Paulo50%
% CBR Region Segment Year
50% São Paulo Middle / Mid-High 2006
50% South All 2006
50% São Paulo Mid-High / Luxury 2007
50% MG and DF All 2007
50% Buenos Aires All 2007
50% São Paulo Economic / Super Economic 2007
75% São Paulo Economic / Super Economic 2007
79% São Paulo Economic / Super Economic 2006
* Goldsztein Cyrela is under the process of acquisition as stated in the Relevant Fact of April 23 2009.
53
69 Projects outside SP – RJ regionR$ 11.8 billion of PSV
(Cyrela’s stake: 62,4%)
Geographical Expansion
Presence in 55 cities in 17 states of Brazil and Buenos Aires in Argentina
Barueri | Belém | Belford Roxo | Belo Horizonte |Cabo Frio | Campinas | Campos | Canoas | Caxias do Sul | Caxias | Cotia | Curitiba | Diadema | Duque de Caxias | Ferraz de Vasconcelos | Florianópolis | Fortaleza | Goiânia | Gravataí | Guarulhos |Jacareí | Jacarepaguá | João Pessoa | Jundiaí |Lauro de Freitas | Maceió | Manaus | Mogi das Cruzes | Natal | Niterói | Nizia Floresta | Nova Iguaçu | Novo Hamburgo | Palhoça | Parnamirim |Porto Alegre | Praia Grande | Recife | Rezende | Ribeirão Preto | Rio de Janeiro | Salvador |Santo André | São Bernardo | São Caetano | São Gonçalo | São J. dos Campos | São José do Rio Preto | São Luis | São Paulo | São Sebastião | Serra | Sorocaba | Vila Velha | Vitória
54
For the client:
- Amount limited to 80% of the sale
and evaluation value
- Guaranty: deed of trust
- Payment terms up to 30 years
For construction:
- Amount limited to 80% of the total
construction cost or R$ 350 thousand/unit
which can represent PSV of R$ 1 million/unit
- Guaranty: 120% of the amount due
- Payment term up to 4 years after completion
of construction
- All projects can be financed by SFH, taking
into consideration the maximum value of units
Financing by SFH
Up to R$ 350 thousandper unit
55
Typical Cyrela Project
Pre-sales 0 50 70 90 100 10080 95
% Budget Costs - - 0% 40% 100% 100%20% 65%
Revenues - - 0 36 100 10016 62
Up to 100M18M 24M 30M 36M12M6M0M
Assumptions for this example:
Potential sales: R$125 million
Exchange agreements (land): R$25 million
Does not include financial revenues in customer financing
Collections(cumulative)
Construction
Launch Go-ahead Delivery Completionof payments
6M - 9MLicensing
- 7 14 28 50 10020 34
56
Typical Economic Project
Contracted Sales(cumulative) - 70 80 10090 100
%Construction Cost - - 23% 100%55% 100%
Revenues(cumulative) - - 19 10049 100
18M 24M Up to 28M12M6M0M
Assumptions for this example:Potential Sales: R$110 millionExchange agreements: 100% (R$10 mn), Unit price 80% financed by partner banksClient is fully financed by the banks after the assignment of the financing to them
Collections(cumulative)
Launch Go-ahead Delivery
6 – 9 monthsPre-Launching
- 6 11 2013 100
Financing
Construction
Shorter operating cycle: 24 months
57
Financing: Interest and Term Impact
Model:Unit Value: R$ 120,000Loan-To-Value: 80%Loan: R$ 96,000Mortgage Effort: 30%
Example
Rental : R$800 per monthAnnual Yield: 8%
Equivalent to Loan Instalment with Real Interest Rate at 8% and 20 years
term.
Monthly Installment (R$)
Minimum Wages Required (monthly salary)
10 15 20 25 3012% 1,377 1,152 1,057 1,011 987 11% 1,322 1,091 991 941 914 10% 1,269 1,032 926 872 842 9% 1,216 974 864 806 772 8% 1,165 917 803 741 704 7% 1,115 863 744 679 639 6% 1,066 810 688 619 576 5% 1,018 759 634 561 515
Loan Term (years)
Rea
l Int
eres
t Rat
e (%
)10 15 20 25 30
12% 13 11 10 10 911% 13 10 9 9 910% 12 10 9 8 89% 12 9 8 8 78% 11 9 8 7 77% 11 8 7 6 66% 10 8 7 6 55% 10 7 6 5 5R
eal I
nter
est R
ate
(%)
Loan Term (years)
Cyrela Brazil Realty S.A. Empreendimentos e ParticipaçõesAv. Presidente Juscelino Kubitschek, 1455, 3th floor – Itaim Bibi – ZIP Code 04543-011 – São Paulo/SP – Brazil
www.cyrela.com.br/ir
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