1Q10 Results. Conference Call. Tenda. Alphaville. Gafisa. Investor Relations Contact Luiz Mauricio de Garcia Paula

Transcription

1 1Q10 Results Conference Call Tenda Alphaville Gafisa Investor Relations Contact Luiz Mauricio de Garcia Paula 1

2 Safe-Harbor Statement We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management, and on information currently available to us. Forward-looking statements include statements regarding our intent, belief or current expectations or that of our directors or executive officers. Forward-looking statements also include information concerning our possible or assumed future results of operations, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,' ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future results and shareholder values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict. 2

3 Overview of 1Q10 Results Financial and Operational Performance Wilson Amaral, CEO 3

4 Highlights Strong Top Line Growth, Operating Margin Improvement and Comfortable Liquidity Operating and Financial Highlights (R$ 000) 1Q10 1Q09 Var. (%) 4Q09 Launches 703, , % 1,000,353 Launches, units - '000 3, % 4,258 Contracted s ales 857, ,565 53% 1,053,810 Contracted s ales, units - '000 5,253 4,100 28% 6,413 Net revenues 907, ,887 67% 897,540 Gros s profit 252, ,639 63% 277,418 Adjus ted Gros s m argin (w/o capitalized interes t) 30.4% 31.8% -140 bps 34.7% Adjusted EBITDA (1) 168,459 76, % 167,825 Adjusted EBITDA m argin (1) 18.6% 14.1% 442 bps 18.7% Adjusted Net profit (2) 79,624 57,055 40% 86,074 Adjusted Net m argin (2) 8.8% 10.5% -170 bps 9.6% Net profit 64,819 36,733 76% 55,321 EPS (R$/s hare) % Results to be recognized (3) 1,030,075 1,003,075 3% 1,065,777 REF m argin (3) 35.1% 34.6% 50 bps 35.2% Net debt and Inves tor obligations 1,207,988 1,361,909-11% 1,998,079 Cas h and availabilities 2,125, , % 1,424,053 (Net debt + Obligations) / (Equity + Minorities) 34.6% 61.9% bps 83.8% (1) A djusted for expenses w ith stock options plans (non-cash) and Tenda goodw ill net of provisions. (2) A djusted for expenses w ith stock options plans (non-cash), minority shareholders and non recurring expenses (3) Results to be recognized net from PIS/Cofins %; excludes the AVP method introduced by law

5 Recent Developments Follow-on Share Offering: R$ 1.02 billion of net proceeds will allow the company to acquire land, increase launch activity and pursue strategic acquicitions; Acquired additional 20% of AlphaVille: Gafisa now owns 80% of Alphaville; will own 100% in 2012; Increased Launches, Strong Sales Velocity at Tenda: Tenda, continued to ramp up its launches of new developments in the entry level and affordable market segment, achieving sales velocity of more than 32%; Tenda soperational Improvement:The first quarter of 2010 was the first full quarter that Tenda has been operated as a wholly-owned subsidiary of Gafisa. The results of the work that was begun last year with Tenda and this past quarter are now bearing fruit; MinhaCasa MinhaVida: CEF contracted volumes reached 417,814 units through April 26 th, showing a improved pace of execution and appears to be on track to reach 1 million by the end of the year; MinhaCasa, MinhaVida 2: Government announced an extension of MCMV through 2014, and a total investment of R$ 72 billion, more than double the R$ 34 billion allocated to the initial program. 5

6 Efficiency Gains under Minha Casa, Minha Vida Program Tenda contracted 11,210 units through April and has close to 22,000 units under CEF analysis Caixa sefficiency continue to improve. In April, Tenda contracted 2,320 units, the highest monthly amount since the beginning of MCMV. Contracted Units in the "MCMV" I Minimum Wages Caixa Econômica Fereral (1) Tenda Share % 0-3 MW 208, MW 209,255 11, % TOTAL 417,814 11, % (1) Until April 26th, 2010 for CEF and April 30th for Tenda. Breakdow between 0-3 and 3-10 based on the % from April 13th. Pipeline Period To be contracted (2) Contracted TOTAL ,102 6,102 1Q10-2,788 2,788 April ,831 2,320 24,151 TOTAL 21,831 11,210 33,041 (2) Units being contracted and already filed with CEF untill April 2010 Transferred Transferred Units ,114 1Q10 1,898 April TOTAL 7,736 6

7 Concluded Projects Gafisa completed 27 developments or phases during 1Q10, representing R$ 338 million of PSV. Gafisa: 3 projects/phases, 325 units, R$ 105 million Tenda: 24 projects/phases, 3,040 units, R$ 233 million Tenda: Valle Verde Cotia, SP Gafisa Acácia II Gafisa: Isla 7

8 Diversified, High-Quality Land Bank Provides Strong Platform for Growth 418 different projects or phases in 22 states PSV - R$ million (%Gafisa) %Swap Total %Swap Units %Swap Financial Potential units (%Gafisa) Gafisa R$500K 4, % 44.8% 7.7% 14,110 / 000 units > R$500K 3, % 29.1% 2.0% 4,137 Total 7, % 36.2% 4.6% 18,247 Alphaville R$100K; 2, % 0.0% 98.1% 19,137 > R$100K; R$500K % 0.0% 94.9% 3,534 > R$500K % 0.0% 96.8% 140 Total 3, % 0.0% 96.8% 22,811 Tenda R$130K 3, % 35.1% 0.0% 43,055 > R$130K % 24.6% 0.0% 2,579 Total 4, % 33.7% 0.0% 45,634 Consolidated 15, % 35.6% 3.8% 86, % acquired by swap agreements. Affordable entry-level segment represents 53% of potential units in land bank. 8

9 Strong Launches and Sales Performance 1Q10 Launches by unit price 1Q10 Pre-sales by unit price (%Gafisa) - R$ 000 1Q10 1Q09 (%Gafisa) - R$ million 1Q10 1Q09 Gafisa R$500 k 142,816 78,559 > R$500 k 166,481 59,803 Total 309, ,362 Units Alphaville R$100K; - - > R$100K; R$500K 97,269 21,881 > R$500K - - Total 97,269 21,881 Units Tenda 1) R$130 k 219,849 - > R$130 k 76,794 - Total 296,643 - Units 2,788 - Consolidated Total 703, ,243 Units 3, Gafisa R$500 k 322, ,287 > R$500 k 53,182 89,845 Total 375, ,132 Units Alphaville R$100K; 27,450 19,569 > R$100K; R$500K 85,431 13,282 > R$500K 3,762 2,529 Total 116,643 35,379 Units Tenda 1) R$130 k 262, ,106 > R$130 k 102,326 33,948 Total 364, ,054 Units 3,729 3,157 Consolidated Total 857, ,565 Units 5,253 4,100 Other 41.4% São Paulo 44.5% Other 40.5% São Paulo 42.5% Rio de Janeiro 14.1% Rio de Janeiro 17.1% 9

10 Inventories and Sales Velocity - 1Q10 Sales Velocity in 1Q10 Contributed to Substantial Inventory Reduction 1Q10 Inventory R$ million Inventories beginning Price Increase + Inventories end Launches Sales of period Other of period Sales velocity Gafisa 1, , % AlphaVille % Tenda % Total 2, , % Inventory reduction (R$ million) 2,929 2,631 2,546 1, ,581 1,570 1,531 1Q09 4Q09 1Q10 Gafisa Alphaville Tenda 10

11 Proven of Execution On track to deliver consistent growth Units Under Construction Projects under Construction 49,423 50, ,586 16, Q10 Units Completed Q10 Number of Engineers E: 25, ,108 8,206 10,831 3, Source: Gafisa Q10/2010E Q10 Intern Enginners Construction Architects On the Job 11

12 Overview of 1Q10 Results Financial Performance Duilio Calciolari, CFO and IR Officer 12

13 Strong Pre-Sales Positively Impact Backlog of Revenues to be Recognized (R$ million) 1Q10 1Q09 4Q09 1Q10 x 1Q09 1Q10 x 4Q09 Consolidated Revenues to be recognized 2,934 2,901 3, % -3.0% Costs to be recognized (1,904) (1,898) (1,959) 0.3% -2.8% Results to be recognized (REF) 1,030 1,003 1, % -3.3% REF margin 35.1% 34.6% 35.2% 54 bps -12 bps Note: Revenues to be recognized are net of PIS/Cofins(3.65%). Backlog of Revenues not adjusted to present value. 13

14 SG&A Improvement over 1Q09 with Better SG&A Ratios Over Top Lines Company (R$000) 1Q10 1Q09 4Q09 1Q10 x 1Q09 Consolidated Selling expenses 51,294 46,606 73,277 10% G&A expenses 57,418 55,918 60,298 3% SG&A 108, , ,575 6% Selling expenses / Sales 6.0% 8.3% 7.0% -236 bps G&A expenses / Sales 6.7% 10.0% 5.7% -331 bps SG&A / Sales 12.7% 18.4% 12.7% -567 bps Selling expenses / Net revenues 5.7% 8.6% 8.2% -295 bps G&A expenses / Net revenues 6.3% 10.3% 6.7% -399 bps SG&A / Net revenues 12.0% 18.9% 14.9% -694 bps All ratios improved when compared to the 1Q09, mainly due to the continued improvement at Tenda and synergies related to the merger of Tenda into Gafisa. We continue to expect synergies to be achieved through shared back office functions, leveraging office infrastructure, and the implementation of systems such as SAP across Tenda soperations (expected in the 3Q10). 14

15 Strong Cash Position: R$2.1 billion Net Debt/Equity (Excluding Project Finance): (13.8%) 71% of the Consolidated Debt is Long-Term Debt Maturity R$ million 1Q10 4Q09 Total Debt 3,034 3,122 Total Cash 2,126 1,424 Investor Obligations Net debt and investor obligations 1,208 1,998 - Net debt and investor obligations / (Equity +Minorities) 34.6% 83.8% - (Net debt + Ob.) / (Eq + Min.) - Exc. Project Finance (SFH + FGTS Deb.) -13.8% 13.3% - Cash Burn Rate 1) ) Already adjusted for the R$ 1.02 billion Equity Offering Long Term 71% Short Term 29% (R$ million) Total Until March/2010 Until March/2011 Until March/2012 Until March/2013 After March/2014 Debentures - FGTS (project finance) 1, Debentures - Working Capital Project financing (SFH) Working capital Total consolidated debt 3, % Total 29% 24% 17% 20% 10% 15

16 Growing Credit Availability Despite Recent Selic Increase Interest Rates vs. Housing Financing 30% % 80 20% % % 30 5% % 0 Dec-02 Jul-04 Feb-06 Sep-07 Nov-08 Dec-09 Selic (%a.a.) Real State Financing (R$ bn) The availability of credit started a favorable growth trend in 2005, when the annual Selic was close to 20%; In 2008 the Central Bank increased the Selic from 11.25% to 13.75% without any impact on home financing; According to the Central Bank, the market is expecting a Selic of 11.75% by the end of 2010, followed by a reduction in Real Estate Financing Amount Funded (R$ bn) Home Financing vs. GDP E SBPE FGTS 101% 83% 18% 13% Denmark UK Chile Mexico Brazil Brazil: low mortgage penetration and high growth potential for home financing 3% Source: Central Bank, IBGE and ABECIP 1. Data from 2006 but for Brazil, its from

17 Follow-on Share Offering Full Primary By the end of March we concluded the primary follow on share offering; Net proceeds was equivalent to R$ 1.02 billion; Intended Use of Proceeds continuous to be as follows: Use of Proceeds % Land Acquisition 35 Working Capital 25 Launches 20 M&A 20 TOTAL

18 2010 Outlook Gafisa continues to expect launches in the range of R$ 4 billion to R$ 5 billion during 2010, of which 40-45% will be dedicated to the affordable entry-level segment through Tenda. We expect full year 2010 EBITDA margin to reach between 18.5% %. 18

19 Gafisa: The Most Liquid Brazilian Real Estate Company and the Only One Listed on NYSE ADTV (R$ MM) Price GFSA3 (R$ / share) Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 Gafisa s average daily trading volume: R$98.6 million (Jan 1 st, 2010 Apr 30 th, 2010) Average Daily Turnover in the last 120 days over free float: 2.0% (1)ADTV = Average Daily Trade Volume 19