Brasil Brokers Earnings Presentation 4Q16 March, 2017

Transcription

1 Brasil Brokers Earnings Presentation 4Q16 March, 2017

2 Overview 03 Results 08 2

3 New Executives CEO Mr. Claudio Hermolin has an executive career built by working in large companies in the segments of construction, development and distribution of electric power, such as Calçada Incorporadora e Construtora, PDG Realty, Even, CEMAR and Agenco. Mr. Claudio Hermolin has a degree in civil engineering from PUC-RJ, with postgraduations and extension courses from FGV and PUC-RJ. CFO and IRO Mr. Andreas Yamagata works in the real estate market for over 20 years, having worked for some of the most important companies in the segment, such as Gafisa and Cyrela, where he occupied the position Finance Director, Business Director and Regional Director of the Midwest. Mr. Andreas Yamagata has a degree in civil engineering from UFRJ, with post-graduations and extension courses from FIA, Kellog and USC Sol Price. Management Director Mr. Arnaldo Faissol has an executive career in finance positions in large companies of Oil&Gas, Infrastucture, Retail and Distribution of electric power, such as Bravante, Invepar, Inbrands, BR Home Centers, Ponto Frio e Equatorial Energia. Mr. Arnaldo has a degree in Economy and Finances from IBMEC-RJ. 3

4 After completing our SWOT analysis, we have set the Group's top priorities in order to improve our execution We will implement higher coordination to have control and effectiveness in the execution of BBRK`s transformation, directed by the PDCA model. Priorities Transformation Process Operational Turnaround Well-succeded Implementation Cash Position Strengthening Productivity increase Institutional Repositioning People Management Technology Businesses Diversification Transformation Management 4

5 Traditional (1) Brazilian Real State Market The Brazilian real estate market is facing one of the most difficult moments in recent history, immediately after a decade of accelerated expansion. Entire Market PSV - Primary Segment Entire Market PSV Secondary Market R$ billion R$ billion FIPEZAP Index National Base (1) Sources: FIPEZAP, Geoimóvel, Geoimóvel, Companies IR Reports and Brasil Brokers Market Intelligence

6 Macro Scenario Some signs on the economy already showing a possibility of gradual improvement throughout Annual Evolution of Brazils GDP- % (2) Selic Rate vs Inflation % p.y. (3) (4) 7.5% 2.7% 1.0% 2.7% 0.1% -3.6% -3.4% 0.5% Selic Rate Inflation 10.8% 11.0% 5.9% 6.5% 7.3% 5.8% 10.0% 5.9% 11.8% 6.4% 14.3% 10.6% 13.0% 6.3% 9.0% 4.0% E E Consumer Confidence Index (1) SBPE Savings Account x Real Estate Credit (5) Contracted Sales Brazilian Primary Market - R$ Billions Consumer Confidence Index SBPE Savings Account Balance in R$ Billions 254 Real Estate Credit Balance in R$ Billions March,17 (1) BACEN (2) (3) e (4) (5) 6

7 Overview 03 Results 08 7

8 Operational Indicators Confronting the difficult moment of the market, the Company has made important changes in its structure in order to adjust its operational leverage. Overhead Stores Employees of sold companies Stores of sold companies 1,441 1, (-53%) % (-64%) % Sales Force (Associated Brokers) Points of Sales Associated Brokers of sold companies 15,528 14,927-7,207 (-46%) 9, ,175 8,321-9% (-58%)

9 Contracted Sales Sales from complementary businesses represented 12% of the total, with São Paulo and Rio de Janeiro being the most representative states. Mercado -27% Primário 76% 16.8 Annual Contracted Sales R$ billion PSV of sold companies 12.3 Mercado Secundário 21% -40% % % Breakdown per segment- Inventories 45% Others 12% Others 12% 20% Secondary 23% Launches Breakdown per state Quarterly Contracted Sales R$ billion ) PSV of Corporate Segment RJ 38% SP 50% % % Breakdown per ticket Above R$650 k 33% Up to R$ 150 k 4% 4Q15 1Q16 2Q16 3Q16 4Q16 26% 24% R$350 - R$650 k R$150 - R$350 k 9

10 Revenues The Revenue originated in complementary businesses, that is, different from the traditional Primary and Secondary Markets, represented 29% of the total Breakdown per Segment- Mortgage Others Net Revenues (R$ million) Net Revenues of sold companies Corporate Rental 12% 10% 6% 2% 53% Primary Market % % -15% -20% Q15 3Q16 4Q16 Secondary Market Breakdown per Segment - Secondary Market 18% 19% Mortgage Others Corporate Rental 5% 8% 1% 2% 66% Primary Market 10

11 Costs and Expenses Strong reduction of 16% in total Costs and Expenses of the Company reached in. Not considering the labor suits losses, reduction would be 20%. Adjusted Costs and Expenses (R$ million) Costs and Expenses Breakdown (%) Labor Suits Losses -7% -27% -16% % % +19% Q Q Q16 2% 5% 7% 2% 21% 22% 40% Payroll and Related Charges Occupancy Outsourced Services Other Op. Income (Expenses) PDA Cost of Services Rendered Other Admin. Expenses Costs and Expenses Reductions (R$ million) -16% % Costs and Expenses Operational Costs and Expenses Cost of Services Payroll and Related Charges Occupa ncy Outsourced Services Other expenses Provision for Doudtful Accounts Other Operating Income (Expenses) Costs and Expenses Loss in labor lawsuits Adjusted Costs and Expenses 11

12 Operational Results and Profitability Adjusted EBITDA (1) (R$ million) Adjusted Net Income (1) (R$ million) EBITDA (R$ million) Net Income (R$ million) (1) Excludes non-recurring effects and IFRS impacts 12

13 Cash Position Weight of fixed costs on the bottom line became larger due to the decrease in sales year on year, negatively affecting the cash flow. Cash Position (R$ million) Cash Flow (R$ million) Cash Begin of Period - 16/1 Oper. Activities Labor Suits Payments Net Cash from Activities Invest. Pay of Shareholders Cash End Acqusitions Act. of Period - 12/31 13

14 Disclaimer This presentation does not constitute an offer, or invitation, or solicitation of an offer to subscribe or purchase shares or any other financial instrument, nor does any information herein form the basis to any contract or commitment whatsoever. The material that follows contains general business information about Brasil Brokers Participações S.A. and its subsidiaries related to 4Q16 and. It is not intended to be relied upon as advice to potential investors. The information does not purport to be complete and is in summary form. No reliance should be placed on the accuracy of the information presented herein and no representation or warranty is made concerning the accuracy of the information presented herein. This presentation contains statements that are forward-looking and are only predictions, not guarantees of future performance. Investors are warned that these forward-looking statements are and will be subject to many risks, uncertainties, and factors related to the operations and business environments of Brasil Brokers, such as competitive pressures, the performance of the Brazilian economy and the industry, changes on market conditions, among other factors disclosed in Brasil Brokers filed disclosure documents. Such risks may cause the Company s actual results to be materially different from any future results expressed or implied in such forward-looking statements. Brasil Brokers believes that based on information currently available to Brasil Brokers management, the expectations and assumptions reflected in the forward-looking statements are reasonable. Lastly, Brasil Brokers expressly refuses any duty to update any of the forward-looking statements contained herein. 14