Menara Morumbi - São Paulo, SP launched in August/2009. Company Presentation AUGUST 2009

Transcription

1 Menara Morumbi - São Paulo, SP launched in August/2009 Company Presentation AUGUST

2 Apogeo Chacára Klabin São Paulo, SP Launched in June % sold Contents Company s Highlights Living Housing Program 100 days Financial Information Appendix

3 L Acqua phases I and II Natal, RN Launched in April 2009 Company s Highlights

4 Current Panorama R$ 157 million Net Income: 56% higher than 1Q09 and 67% higher than 2Q08 Increase in sales speed for all income segments: pre-crisis levels Lower interest rate in 50 years will be positive for the activity in the mid-high segments Housing Program Minha Casa, Minha Vida One thousand units launched out of more than 10 thousand units already approved by CEF 1 st contract of the Housing Program Minha Casa, Minha Vida with Banco do Brasil 70% sold in the month of launch Goldsztein`s acquisition completed after approval on Shareholders Meeting held on June 2009 Board of Directors approved R$ 350 million loan due in 5 years Clearer perspectives of the market allow Cyrela to announce guidance for 2009 and 2010 Guidance for 2009 Sales and launches: between R$ 4.6 and R$ 5.1 billion (Cyrela s share: 70% to 75%) Guidance for 2010 Launches between R$ 6.9 and R$ 7.7 billion (Cyrela s share: 73% to 77%) Sales between R$ 6.2 and R$ 6.9 billion (Cyrela s share: 73% to 77%) 4

5 Guidance Guidance Launches R$ 4.6 billion to R$ 5.1 billion R$ 6.9 billion to R$ 7.7 billion Sales R$ 4.6 billion to R$ 6.2 billion to R$ 5.1 billion R$ 6.9 billion Cyrela s share 70% to 75% 73% to 77% 2009 Gross Margin Traditional: 36% to 39% Living: 32% to 35% Average for Cyrela: 35% to 39% EBITDA Margin: 21% to 25% Net Margin: 14% to 16% 5

6 Launches Launches (R$ million) projects launched in 2Q09-2 in April (MA and RN) - 6 in May (SP, RJ, RN, PR) - 6 in June (SP, RJ, ES, PA, RS) Average price: R$ 219 thousand /unit 1Q09 Cyrela 2Q09 Partners or R$ 3.1 thousand/sq.m. Distribution by region 2Q09 LIVING: 36% of the PSV launched in 2Q09 SP 39% RJ 10% Expansion 51% 6

7 Pre-Sales Decrease of inventory in 1H thousand units sold Living: 29% of 2Q09 sales Sales (R$ million) H09 Sales by launch period (R$ million Cyrela s share) 1Q09 Cyrela 2Q09 Partners 1H09 Sales : 46% of inventories Sales by region 2Q % 29% 29% 9% 6% 1% 1% SP 45% RJ 11% 2Q09 launch 1Q09 launches 2008 launches 2007 launches 2006 launches 2005 launches Launches prior to 2005 Contracted Sales % CBR % of 1H09 sales Expansion 44% 7

8 Sales Speed Cyrela + Living Launches Sales Speed 2Q08 67% 10% 2% 1%2%82% 3Q08 4Q08 1Q09 41% 31% 35% 8% 13% 6% 12% 52% 31% 6% 65% 66% Back to precrisis sales speed level 2Q09 45% 26% 70% IN JULY In 3 months In 6 months In 9 months In 12 months In 15 months Sales Over Total Supply ( VSO ) by quarter R$ million Cyrela s share 49.0% 27.7% 15.2% 12.6% 21.5% 3Q08 4Q08 1Q09 2Q09 12M 8

9 Units Delivered Units Delivered 1H09 PSV Launched Units Delivered % Sold 2,787 units delivered in the first semester of 2009 (R$ 1.1 billion) Vereda Ipiranga % Paulistânia % Páteo Pompéia - Perdizes % Les Residences De Mônaco % Front Lake % Contemporâneo % Iguatemi Aldeia Parque % Jardim Do Lago Fase I % Via Paulista % Nova Klabin % Allori Vila Romana % Belle Epoque % Vitoria Vila Matilde % Vero Campo Belo % Liber Park E Village % Garden Resort (Fase II) % Total % Units that will be delivered during the year % 97% of the units delivered in 2009 were sold Forecast of 11 to 12 thousand units to be delivered up to the end of 2009 (R$ 4.1 billion) Currently: 153 construction work sites throughout the country (57 by Cyrela) 2,211 Units Delivered 3,178 11,659 8,872 2,787 19, e 2010e 1H09 Units Delivered and Foreseen Units net of swaps 9

10 SFH Financing Strengthened Relationship with the Housing Financial System and with Caixa Econômica Federal (CEF) In 2009, R$ 706 million were contracted (R$ 334 million from CEF) All 2009 projects already have SFH financing contracted 4,341 4, CEF Other banks Total SFH Contracted Loans (R$ million) 10

11 Landbank Geographical distribution on June 30, 2009 Southern region 5.1% Nothern region 3.2% Northeast 19.0% Southeast 71.5% São Paulo Capital City 19.5% São Paulo inlands 11.0% Rio de Janeiro 39.7% RJ 40% Expansion 30% Argentina 0.3% Minas Gerais 0.4% Espírito Santo 1.8% SP 31% PSV: R$ 37.5 billion (100%) and R$ 30.4 billion (% Cyrela) Units in landbank: thousand 183 plots of land, 64 of which are outside of the Rio-SP region Swaps: 72% 11

12 Landbank 113 thousand units eligible to financing by SFH Units in landbank 140, , ,000 80,000 60,000 40,000 20,000 17,871 10,526 21% up to R$ 130 thd 26,369 84% up to R$ 500 thd 8,761 1, ,505 10,519 11,737 47,649 - Up to R$ 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 12

13 Fatto Sport Faria Lima São Paulo - SP Launched in May 2009 Living

14 Living s Operation Living s Nationwide Activity Northern region Ceará Rio Grande do Norte Pernambuco Independent Activity New Headquarters Separate Accounting 100% Cyrela Independent activity in all steps of the business: Land acquisition Real Estate Development Sales Construction Customer Relationship Organic operation and in partnership with JVs CEF correspondent servicing all Brazilian Regions Minas Gerais Southern region São Paulo Bahia Espírito Santo Rio de Janeiro 14

15 Construction Living Construtora Use of Lean Construction Concept Simple projects, easily executed, with repetitions, standardized and focused on management Assembly line Reduction of wastes and costs Increased productivity during works execution Increased construction quality Increased flexibility of requirements Flexibility of works execution schedule Increased costumer satisfaction Enhancement of construction methods for popular housing Product 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 15

16 Living s Launches in the Near Future Projects PSV (R$ thd) Units % Cyrela Average price (R$thd/un.) MCMV 3Q09 545,265 4,491 72% % of units Eco Park Home Resort (Phase II - 50%) 41, % 162 No Imbuí 32, % 81 No Fatto Lago dos Patos - Guarulhos 42, % 258 No Fatto Jardim Botânico Phase I 52, % 137 No Stilo Phase I 54, % 165 No Santa Quitéria 22, % 150 No Arboretto (Phase II) Tower V 14, % 148 No Tumelero Porto Alegre 28, % 134 No Liber Residencial Clube Phase II 41, % 134 No Avanti Vida Phase II 48, % 120 Yes Fatto Sport Faria Lima 35, % 117 Yes Viva Mais (Itaqua) 43, % 115 Yes Recreio das Laranjeiras - Phase I 23, % 102 Yes Jg Lauro de Freitas 43, % 107 Yes Vitória Pirituba Phase II 25, % 95 Yes São Cristóvão 27, % 89 Yes Praça do Sol - Phase I 25, % 78 Yes Parque dos Sonhos Buriti Phase IV 15, % 53 Yes 16

17 Living s Launches and Sales 2Q09 Launches (R$ million) Contracted Sales (R$ million) Q09 2Q09 1Q09 2Q09 Living Partners Living Partners Average Sales and Launchings Speed 2Q08 63% 21% 3% 2%2% 90% 3Q08 41% 18% 7% 8% 74% 4Q08 35% 9% 6% 50% 1Q09 31% 38% 69% 2Q09 37% 30% 67% IN JULY In 3 months In 6 months In 9 months In 12 months In 15 months 17

18 Living s Lanbank 2Q09 PSV: R$ 7.2 billion (100%) Landbank by unit price R$ 5.7 billion (% Living) 60,000 50,000 26,369 54, plots of land 40,000 30,000 17,871 Swaps: 66% 20,000 10,000 10,526 - Up to R$ 100 thd From R$ 100 thd to R$ 130 thd Above R$ 130 thd Total Housing Program Minha Casa, Minha Vida MCMV 52% Others 48% Note.: Calculations done in units 18

19 100 days of program

20 Programa Minha Casa, Minha Vida Main Changes in the Program Change in the debt-to-income level 20% to 30% of the gross family income. Construction term Change from 12 to 15 months. Participating municipalities Extintion of the minimum of 100 thousand inhabitants. Additional R$ 1 billion were dedicated for construction for the 0 to 3MW bracket in municipalities with up to 50 thousand inhabitants. Changes in the Operation Supervision Fee Change from 1.5% per stage to R$ 1,200 per construction period under CAIXA s supervision. 20

21 Purchasing Power The table below shows the general requirements Ref. SP, RJ, FD and metropolitan regions: < 3 MW 4 MW 5 MW 6 MW 7 MW 8 MW 9 MW 10 MW Wages 1,395 1,860 2,325 2,790 3,255 3,720 4,185 4,650 Max. Installments value (20%) ,116 1,256 1,395 Maximum amount to be financed 55,800 74,400 83,700 91,309 84,735 97, , ,896 Maximum subsidy 23,000 16,000 9,000 2, Purchasing power 78,800 90,400 92,700 93,309 84,735 97, , ,896 Term (months) Nominal Rate (p.a.) 5.00% 5.00% 5.00% 6.00% 8.16% 8.16% 8.16% 8.16% Effective Rate (p.a.) 5.12% 5.12% 5.12% 6.17% 8.47% 8.47% 8.47% 8.47% Rate (p.m.) 0.42% 0.42% 0.42% 0.50% 0.68% 0.68% 0.68% 0.68% Insurance (% of installment) Exempt Exempt Exempt 1.5% to 6.64% 1.5% to 6.64% 1.5% to 6.64% 1.5% to 6.64% 1.5% to 6.64% New range accepted 21

22 Caixa Econômica Federal Immediate Enhancements Corporate Desk Corporate Department independent from regional offices, helping developers with the process in the branches. Increased Commitment The Engineering, Risk and Law departments are more committed to the project, and instead of controllers they are now managers of the process. They are closer to the business, directly helping developers. Analysis Deadlines Project analysis now with deadlines. There are no longer partial analysis, only projects with all due documents can be analyzed. Authorization for sales and for the use of the brand CAIXA and MCMV after pre-analysis (15 days in average). 22

23 Caixa Econômica Federal Short Term Enhancements Property Assessment System Several discussions with developers to enhance the assessment system. New system called CAIXA SIMBRASIL GEO to assess demand, income, demographic density and several other issues addressed in the assessment, which was previously based mainly on supply and property price in the region. New Project Portal Control of the status of each project subject to approval, with access granted for Presidential Staff Office (CASA CIVIL), CAIXA s directors and for developers. Control of each stage s analysis period. Justification is required if deadlines are not met. Increased transparency throughout the whole process. 23

24 Figures of the Industry Mortgages Contracted (R$ billion) * Dec-07 Mortgage growth index - % in 12 months balance Jan-08 Feb-08 Mar-08 SF Nacional (-) CAIXA CAIXA SF Nacional Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May Source: BACEN/CAIXA * position on June/09 24

25 Figures of the Industry 10 thousand Living units within MCMV already approved until July North 10.3% Goal 103,018 Northeast 34.3% Goal 343,197 Approvals until July, 2009 Income Projects Units 0 to 3 MW ,292 3 to 6 MW ,040 Mid West 7.0% Goal 69,786 Southeast 36.4% Goal 363,983 6 to 10 MW ,533 TOTAL ,865 Total of investments - R$ 6.4 bn South 12.0% Goal 120,016 Source: CAIXA 25

26 Vitória Pirituba Juriti São Paulo, SP Launched in May % sold in the quarter Financial Results

27 Financial Results Net Revenue (R$ million) +15% +10% 1, , Gross Income (R$ million) 2Q08 2Q09 1H08 1H09 Net Revenue Backlog (R$ million) 39.1% 39.4% 34.2% 35.7% 32.5% 33.4% 32.4% -3% +4% , , , Q08 2Q09 1H08 1H Q09 1H09 Gross Profit Gross Margin Revenue to be Recog. Gross Mg. To be Recog. 27

28 Financial Results EBITDA (R$ million) Net Profit (R$ million) 23.9% 23.3% 17.9% 16.6% 19.2% 18.4% +46% % 12.1% +37% % +58% Q08 2Q09 1H08 1H09 EBITDA EBITDA Margin Expenses over Contracted Sales 2Q08 2Q09 1H08 1H09 Net Profit Net Margin Expenses over Net Revenue 14.5% 10.9% 13.5% 11.6% 11.6% 4.6% 7.6% 5.6% 9.6% 9.5% 6.3% 6.1% 6.9% 8.5% 7.6% 7.8% 6.8% 6.0% 5.8% 2.4% 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2Q09 Selling Expenses Gen. & Admin. Expenses Selling Expenses Gen. & Admin. Expenses 28

29 Accounts Receivable Accounts Receivable Performance (R$ million) Receivables Remuneration (R$ million) 7,681 7,685 7,464 Built: IGP-M + 12% Under construction: INCC 7, Q09 1H09 Receivables 6,578 2,771 1,578 1,675 Receivables Schedule (R$ million) 1,282 Finished units Units under construction Construction cost to incur- sold Until

30 Liquidity Debt (R$ million) As of June 30, 2009 Maturity Cost SFH to 2014 TR % to 12.0% p.a. Debentures 1 st issuance , 2013, 2014 CDI % p.a. Debentures 2 nd issuance* CDI % p.a. Bradesco (stand-by) and others Nov/2010, Nov/2011, Nov/2012, Nov/2013 CDI % p.a. Loans (foreign currency) US$ 20 million 39.0 Sep/2011 Libor + 3.5% p.a. Total Debt with SFH 2,278.2 Total Debt without SFH 1,329.5 Cash and Cash Equivalents (498.4) Net Debt withsfh = 2.9 times Net Debt withsfh 1,779.8 LTM EBITDA Net Debt without SFH Net Debt without SFH = 1.3 time * Repactuation in 2010 and 2011 LTM EBITDA 30

31 Delays and Cancellations Delays 2.00% 1.98% 1.87% 1.64% 1.34% 1.43% 1.52% 1.35% 1.38% 1.79% 1.09% 1.59% 1.43% 1.37% 1.39% 1.26% 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 Delays above 31 days Cancellations 1.92% Feb-09 Mar-09 Apr-09 May-09 Jun % 0.36% 0.26% 0.23% 0.23% 0.21% 0.20% 0.18% 0.22% 0.22% 0.23% 0.26% 0.27% 0.20% 0.17% 0.14% 0.21% 0.24% 0.07% Jan- 08 Feb- 08 Mar- 08 Apr- 08 May- Jun- Jul Aug- Sep- Oct Nov- Dec- Jan- Feb- Mar- Apr Cancellation index = cancellations / active clients May- Jun Note: Considering only the portfolio managed by Cyrela 31

32 Pre-Sales to be Recognized R$ million June Sales to be recognized at the beginning of the period 1, , ,124.2 Net sales recorded in the period 4, , Revenues recognized in the period (2,030.3) (2,930.8) (1,591.2) Sales to be recognized at the end of the period 4, , ,331.6 Taxes (149.0) (187.0) (158,1) Cost of units sold to be recognized (2,604.7) (3,217.2) (2,770.7) Selling Expenses (26.3) (37.6) (19.8) Gross profit to be recognized 1, , ,402.9 Percentage of gross profit 32.5% 33.5% 32.4% 32

33 Barra Prime Office Rio de Janeiro RJ Launched in Nov/08 Appendix

34 Mortgage Credit Available Mortgage Loans Funding (R$ billion) CAGR e: 45% e SBPE Source: ABECIP, Central Bank of Brazil and Secovi FGTS Contracts (thousands) Source: ABECIP, Central Bank of Brazil and Banco Real Mortgage Loans Record = in 1980 CAGR e: 18% SBPE FGTS e Housing Program Minha Casa, Minha Vida (R$ billion) % 230% 180% 130% 80% 30% Mortgage to GDP Ratio 249% 166% 156% 141% 137% 125% 111% 65% 73% 63% 53% 46% 46% 37% 35% 33% 20% 28% 13% 10% 2% 2% 8% 6% 9% 17% FEDERAL BUDGET FGTS BNDES TOTAL -20% USA Netherlands UK South Africa Ireland Spain Chile Mortgage credit to GDP Ratio Hungary India Brazil Total Credit to GDP Czech Rep. Poland Mexico Source: Programa Minha Casa, Minha Vida Source: Central Bank and Bradesco Corretora 34

35 Demand in Expansion São Paulo Rio de Janeiro Supply to Sales - 12 month curve in units Supply to Sales - 12 month curve in units Source: SECOVI-SP/EMBRAESP Source: ADEMI-RJ Porto Alegre Fortaleza Supply to Sales - 12 month curve in units Oct abr Dec mar Jan mai-07 Jan Supply to Sales - 12 month curve in units Nov Source: SINDUSCON-RS Apr-98 Oct-98 Apr-99 Oct-99 Apr-00 Oct-00 Apr-01 Oct-01 Apr-02 Oct-02 Source: SINDUSCON-CE/FIEC Apr-03 Oct-03 Apr-04 Oct-04 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-04 Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06 Supply to sales Apr Jul Aug May ,2 jan Dec-05 Suppy to sales Apr-00 Oct-00 Apr-01 Oct-01 Apr-02 Oct-02 Apr-03 Oct-03 Apr-04 Oct-04 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Dec Apr-08 Apr Jan-01 Aug-01 Mar-02 Oct-02 May-03 Dec-03 Jul-04 Feb-05 Sep-05 Apr-06 Nov-06 Jun-07 Jan-08 Aug-08 Mar-09 Feb-07 Jun-07 Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Jan-01 May May Feb Apr Supply to sales Jul Jul Mar Apr May Aug May May Supply to sales Oct Dec Jun-09 Jun Apr

36 Sales Performance Residential 2008 São Paulo (R$ million) Rio de Janeiro (R$ million) 65,833 40,520 4,123 1,949 Market Cyrela Market Cyrela 6,050 4, Launches in SP Pre-Sales in SP Launches in RJ Pre-Sales in RJ 9% 12% 17% 20% Launches Pre-Sales Launches Pre-Sales Cyrela s stakes indicate strong sales performance in the main markets Source: Cyrela MID 36

37 Launches 2004 to SP Metropolitan Region Units 58,512 65,833 9,611 Potential Sales Value (R$ million) 17,422 17,822 7,030 18,864 34,345 35,350 19,074 28,782 3,688 4,051 3,224 8,567 10,12 9 5,307 21,524 28,987 8,937 10,269 12,721 11, , ,449 10,884 8, ,052 7,282 11,274 9,607 7,997 3,939 7,326 3,320 5,626 3,119 3,894 3,242 1,977 4,072 4,154 1,803 1,928 2,688 1,098 1, Luxury > R$ 3,500/m² Middle > R$ 2,700/m², <3,500/m² Economic > R$ 1,900/m², <2,700/m² Super-Economic < R$ 1,900/m² Source: Cyrela MID 37

38 Launches 2004 to RJ and Region Units Potential Sales Value (R$ million) 13,350 2,363 6,856 7,019 7,831 3,885 1,491 1,734 3,666 1,677 2,511 5,800 1,14 1 2,680 3,080 1, , ,302 15,911 4,419 4,484 4,559 2,449 4,121 3,446 3,147 1,894 1,272 2,354 1, , , Luxury > R$ 3,500/m² Middle > R$ 2,700/m², <3,500/m² Economic > R$ 1,900/m², <2,700/m² Super-Economic < R$ 1,900/m² Source: Cyrela MID 38

39 Excellent Track Record of Growth Launches (R$ million) Pre - Sales Contracts (R$ million) CAGR = 49% CAGR = 48% 5,393 4,827 4,392 4, , ,004 2,917 1,924 3,428 3, , ,915 1,369 2,815 3, Cyrela Partners Cyrela Partners Consistent track record of growth in Launches and Pre-sales Contracts 39

40 Cyrela Brazil Realty Launches R$ 1.2 bn R$ 2.9 bn R$ 5.4 bn R$ 4.9bn Pre-sales R$ 1.0 bn R$ 1.9 bn R$ 4.4 bn R$ 4.7bn Landbank 3.0 mn sq.m. 4.9 mn sq.m. 8.8 mn sq.m mn sq.m. Low income units thd 10.5 thd Baixa Gross Renda Margin 48.5% % % % Baixa EBITDA Renda Margin* 27.1% % % % Baixa Net Margin* Renda 23.2% % % % # Homebuilders listed Market Cap Cyrela Brazil Realty R$ 2.4 bn R$ 4.5 bn R$ 8.6 bn R$ 3.3 bn Market Cap of the Industry R$ 6.0 bn R$ 10.0 bn R$ 48.1 bn R$ 13.4 bn Number of cities Employees Seller Brokers & Team *Adjusted for IPO expenses and according to BR GAAP before Law 11,638 40

41 Joint Ventures % CBR Region Segment Year 50% São Paulo Middle / Mid-High % São Paulo Mid-High / Luxury % MG and DF All % São Paulo Middle / Mid-High % Buenos Aires All % São Paulo 79% São Paulo Economic / Super Economic Economic / Super Economic The former JV Goldsztein Cyrela was acquired in June

42 Geographical Expansion Presence in 55 cities in 17 states of Brazil and Buenos Aires in Argentina 64 Projects outside SP RJ region R$ 11.2 billion of PSV (Cyrela s stake: 72%) 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 42

43 Typical Cyrela Project Launch Go-ahead Delivery Completion of payments 6M - 9M Licensing Construction 0M 6M 12M 18M 24M 30M 36M Up to 100M Pre-sales % Budget Costs - - 0% 20% 40% 65% 100% 100% Revenues Collections (cumulative) Assumptions for this example: Potential sales: R$ 125 million Exchange agreements (land): R$ 25 million Does not include financial revenues in customer financing 43

44 Typical Economic Project Shorter operating cycle: 24 months Launch Go-ahead Delivery Financing 6 9 months Pre-Launching Construction 0M 6M 12M 18M 24M Up to 28M Contracted Sales (cumulative) %Construction Cost % 55% 100% 100% Revenues (cumulative) Collections (cumulative) Assumptions for this example: Potential Sales: R$ 110 million Exchange agreements: 100% (R$10 mn), Unit price 80% financed by partner banks Client is fully financed by the banks after the assignment of the financing to them 44

45 Financing: Interest and Term Impact Model: Unit Value: R$ 120,000 Loan-To-Value: 80% Loan: R$ 96,000 Mortgage Effort: 30% Example Real Interest Rate (%) Monthly Installment (R$) Loan Term (years) % 1,377 1,152 1,057 1, % 1,322 1, % 1,269 1, % 1, % 1, % 1, % 1, % 1, Rental : R$800 per month Annual Yield: 8% Equivalent to Loan Instalment with Real Interest Rate at 8% and 20 years term. Minimum Wages Required (monthly salary) Real Interest Rate (%) Loan Term (years) % % % % % % % %

46 Cyrela Brazil Realty S.A. Empreendimentos e Participações Av. Presidente Juscelino Kubitschek, 1455, 3th floor Itaim Bibi ZIP Code São Paulo/SP Brazil