brasil brokers results...2008/11/14 · 2008 brasil brokers –todos os direitos reservados | this...

2008 Brasil Brokers – Todos os Direitos Reservados |

BRASIL BROKERS RESULTS

2008 Brasil Brokers – Todos os Direitos Reservados

3rd Quarter 2008


This presentation does not constitute an offer, or invitation, or solicitation of an offer to subscribe for orpurchase any securities neither does this presentation nor anything contained herein form the basis to anycontract or commitment whatsoever.

The material that follows contains general business information about Brasil Brokers Participações S.A.related to the quarter ended on September 30, 2008. It is not intended to be relied upon as advice topotential investors. The information does not purport to be complete and is in summary form. No relianceshould be placed on the accuracy, fairness, or completeness of the information presented herein and norepresentation or warranty, express or implied, is made concerning the accuracy, fairness, orcompleteness of the information presented herein.

This presentation contains statements that are forward-looking and are only predictions, not guaranteesof future performance. Investors are warned that these forward-looking statements are and will besubject to many risks, uncertainties, and factors related to the operations and business environments ofBrasil Brokers and its subsidiaries such as competitive pressures, the performance of the Brazilianeconomy and the industry, changes on market conditions, among other factors disclosed in Brasil Brokersfiled disclosure documents. Such risks may cause the actual results of the companies to be materiallydifferent from any future results expressed or implied in such forward-looking statements. Brasil Brokersbelieves that based on information currently available to Brasil Brokers management, the expectationsand assumptions reflected in the forward-looking statements are reasonable.

Lastly, Brasil Brokers expressly refuses any duty to update any of the forward-looking statementscontained herein.

1


Agenda

Company

Operating Highlights

Financial Highlights

2

3rd Quarter Results/2008

2008 Brasil Brokers – Todos os Direitos Reservados | 3

3Q08 Acquisitions


ManausNatal

Salvador

Belém

Belo Horizonte

São Paulo

Rio de Janeiro

Vitória

Recife

Curitiba

Florianópolis

Porto Alegre

Goiânia

Distrito Federal

Porto Velho

Company

4

Operating in 14 states and in Brasília

832 Points of Sales

9,177 Brokers

26 Subsidiaries

Brasil Brokers operates through its

subsidiary Primaz

States where Brasil Brokers has

subsidiaries


Primary Market – 3Q08 Developers

5

Considering companies: CCDI, CR2, Cyrela, Even, EZTEC, Gafisa, Helbor, JHSF, Klabin Segall, MRV, PDG Realty, Rodobens, Rossi.

5.6

4.3

2Q08 3Q08

Contracted SalesDevelopers

(R$ Bi)

-24%-24%2.7

2.6

2Q08 3Q08

Contracted SalesBrasil Brokers

(R$ Bi)

-5%


Operations Expansion

6

São Paulo

(Capital)

Rondônia

Salvador


Company




7


Primary Market - Launches

8

3,199

5,254

4,275

1Q08 2Q08 3Q08

Launched PSV (R$ MM)

-19%

64%

-19%

64%

11,758

21,018 20,782

1Q08 2Q08 3Q08

Launched Units

-1%

78%

1,050

4,275

3Q07 3Q08

307%

6,030

20,782

3Q07 3Q08

245%


Primary Market – Contracted Sales

9

1,784

2,086

1,908

1Q08 2Q08 3Q08

Contracted Sales in the Primary Market (R$ MM)

17% -9%

9,039

11,813

10,238

1Q08 2Q08 3Q08

Contracted Units in the Primary Market

-13%

31%


Primary Market - Contracted Sales per Region

10

642

835

686

1Q08 2Q08 3Q08

SP Primary Market Contracted

Sales(R$ MM)

-18%30%

376

339 339

1Q08 2Q08 3Q08

RJ Primary Market Contracted

Sales (R$ MM)

0%

-10%

835

911883

1Q08 2Q08 3Q08

Other States Primary Market

Contracted Sales (R$ MM)

-3%9%


Primary Market - Contracted Sales by Income Segment

2Q08 3Q08

11

High

(above R$650 k)

R$166MM

Economic

(up to R$100 k)

R$172MM

Mid -Low

(R$100 -

R$150 k)

R$300MM

Middle

(R$150 -R$350 k)

R$865MM

Mid -High

(R$350 -

R$650 k)

R$405MM

45%

9%

16%21%

9%

Mid-High

(R$350-

R$650 k)

R$346MM

High

(above R$650 k)

R$220MM

Economic

(up toR$100 k)

R$238MM

Mid-Low

(R$100-

R$150 k)

R$429MM

Middle

(R$150-R$350 k)

R$853MM

21%

41%

17%

10% 11%


Contracted Sales - Secondary Market

12

400

521

459

1Q08 2Q08 3Q08

Secondary Market Contracted Sales

(R$ MM)

-12%30%

2,321

2,639 2,620

1Q08 2Q08 3Q08

Secondary Market Contracted Units

-1%

14%


Total Contracted Sales

13

4,862

12,894

3Q07 3Q08

887

2,583

3Q07 3Q08

191%165%

2.404

2.7132.583

1Q08 2Q08 3Q08

Contracted Sales (R$ MM)

-5%13%

11.360

14.452

12.894

1Q08 2Q08 3Q08

Contracted Units

-11%27%


Integration and Synergy

Management Processes and Systems

Human Resources

Marketing

Primary Market

Secondary Market

New Products / Services

Business Opportunities

Implementation of the Best

Practices in all Subsidiaries.

FRONTS

Strategic Goals

Standardize systems and

processesCosts Reduction

Improve commercial

efficiency and revenues

Finance / Accounting

14

2008 Brasil Brokers – Todos os Direitos Reservados |15

Synergy Program

FRONTS KEY ACCOMPLISHMENTS UP TO 3Q08 4Q08 PLANS

Finance and

AccountingStandardization of accounting practices. Centralization of the accounting process.

Management

Processes and

Systems

SAP implemented in 16 subsidiaries before

IPO;

SAP training for 120 employees;

Standard Operating Model - resales and

launches;

Installation of the Processes and Systems

Committee.

Implementation of SAP in all 10 companies acquired

after IPO;

Implementation:

Unique Sales System: Resales Module and

Launch Module;

Standard Operating Procedure for Sales.

2008 Brasil Brokers – Todos os Direitos Reservados |16

Synergy Program


Human

Resources

Training of 199 managers in the "Sales Force

Management Training Program";

Over 157,000 hours of training for sales force;

Management model - establishment of targets

and performance-based compensation;

National Employees and Brokers Database;

Installation of the Human Resources

Committee.

Internal Communication and Endomarketing Model;

1st Sales Manager Development Workshop;

Brasil Brokers Professional Development Model;

Training over 75 managers in the “Sales Force

Management Training Program";

40,000 additional hours of training for sales force.

Marketing

Brasil Brokers' Campaigns and Events – client

developers and internal team;

Installation of Marketing Committee.

Beginning of the development of Brasil Brokers' new

portal.



Primary Market

Preparation of a business model for selling

units under construction (Remaining);

Identification of the best operational practices

and sales force organization;

Merger of DelForte and Iprice.

Implementation:

Business Model for units under Construction

(Remaining);

Operational Standards for Launch Sales.

Secondary MarketPreparation of the best operational practices

and sales force organization.

Implementation:

Operational Standards;

Better operational practices and sales force

organization.

Synergy Program



New Products /

Services

Identification of the best operational practices -

real estate financing;

Implementation of the real estate financing

structure in 4 subsidiaries;

Implementation of the Real Estate Financing

Committee.

Implementation of the best operational practices for

real estate financing in all subsidiaries;

Continuation of the implementation of the real estate

financing structure in all other subsidiaries.

Business

Opportunities

Cross-compensation model among

subsidiaries. Process of business origination and results control.

Synergy Program


Reduction Expenses Target: R$ 32 Million/Year

(Equivalent to 20% of Total Expense)

Reduction Expenses Plan

Expenses GroupImplemented reduction

accomplishments(R$ MM)

Future Reduction

Planned (R$ MM)

%

Implemented

Human Resources 11.1 3.0 79%

General Expenses 4.5 1.0 82%

Marketing 4.8 1.0 83%

IT / Telecom 2.1 1.5 58%

Occupation 2.0 0.4 83%

Third parties services 0.5 0.1 83%

Total 25.0 7.0 78%

19


Company




20


Operating Schedule

21

APR MAY JUN JUL AUG SEP

21 21 24 24 24 24

100% Operating 21 21 24 24 24 24

Parcial Start 0 0 0 0 0 0

Global

Pointer

Ética Imobiliária

3rd

Quarter 2008

Brokers

Avance

Brito & Amoedo

Del Forte

Gribel

I. Price

Niterói Administradora

Pactual

Primaz

2nd

Quarter 2008

Triumphe

Abyara Brokers

Chão & Teto

Operating Subsidiaries

Noblesse

Américas

Basimóvel

Paulo Sardenberg

Tropical

Abreu

Jairo Rocha

Frema

Rede Morar

JGM

Redentora

Marcos Koenigkan



9M08 Net Revenue reached

R$ 170.8 MM.

22

64.8

53.7

2Q08 3Q08

Net Revenue (R$ MM)

-17%



23

30.0

37.3

2.0

1.9

3.3

2Q08 New Branches Subsidiaries Addition

Structure Growth

3Q08

Total Cost and Expenses (R$MM)

2Q08 3Q08

Total Cost and Expenses - Subsidiaries (30.0) (37.3)

Cost of Services (7.4) (7.7)

General and Administrative Expenses (22.6) (29.6)

Holding Adjusted Expenses (3.1) (3.4)

Adjusted Total Cost and Expenses (33.1) (40.7)



9M08 Adjusted Net Income totaled R$ 65.8 MM with

Net Margin of 38.5%.

24

(1) Adjusted Net Income is not an account method, consist in the period net profit less the goodwill amortization, present value adjustment and non-recurring expenses.

29.6

11.3

2Q08 3Q08

Adjusted Net Income (R$ MM)

and Adjusted Net Margin (%)

-62%

21%

46%



(1) Adjusted EBITDA consists of income before net financial result, income tax and social contribution tax, depreciation and amortization and non-operating income. Adjusted

EBITDA is not a measure in accordance with generally accepted accounting principles in Brazil (BR GAAP), does not represent cash flow for the periods presented, and

should not be considered a substitute for net income as an indicator of operating performance or as a substitute for cash flow as an indicator of liquidity. Adjusted EBITDA

does not have a standardized meaning and our definition of Adjusted EBITDA may not be comparable to that used by other companies..

(2)

9M08 Adjusted EBITDA was R$ 70.0 MM with EBITDA

Margin of 41.0%.

25

31.6

12.9

2Q08 3Q08

-59%

Adjusted EBITDA (R$ MM)

Reconciliation (R$ MM) 2Q08 3Q08

Adjusted Net Income 29.6 11.3

Financial Results (6.8) (5.9)

Income Tax and Social Contribution 8.4 6.8

Non Operating Result (0.1) (0.1)

Depreciation and Amortization 0.5 0.8

Minority Interest 0.1 0.0

Adjusted EBITDA(1) 31.6 12.9

Adjusted EBITDA Margin 48.8% 24.1%


IR Contact

Álvaro SoaresCFO and IRO

Bruno Di FilippiIR Analyst

Phone: (55 21) 3433-9550

e-mail: [email protected]

www.brbrokers.com.br

26

mailto:[email protected]

http://www.brbrokers.com.br/

brasil brokers results...2008/11/14 · 2008 brasil brokers –todos os direitos reservados | this...

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