Corporate Presentation

Transcription

1 Corporate Presentation January

2 Disclaimer 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 Shareholder Structure, Corporate Governance and Liquidity True corporation listed on the NYSE and the most liquid Brazilian Real Estate company GFSA3 Majority Independent Board of Directors; 100% 80% 100% Avg. Daily Trading Volume (R$ mm) - Last 90 days 1 Senior management with an average of over 20 years of experience and interests aligned with shareholders through Stock Option Plan; Permanent Fiscal Council, Audit, Compensation, Finance and Governance committees 100% free float; 100% tag along rights; % common shares ( Novo Mercado ); Full compliance with Sarbanes-Oxley; Only Brazilian real estate company listed on the NYSE. PDG MRV Cyrela Rossi Brookfield 1. Source: Bloomberg as of January 11th,

4 Solid Track Record of Value Creation Strong growth, value-creating transactions with a successful history in the capital markets 1 3,921 Net revenue (R$ mm) 3,022 1,204 1,740 New Follow-on: Net Primary proceeds of R$1.02 billion Foundation 457 Equity International investment 664 IPO: R$494 mm of primary proceeds Acquisition of a 60% stake Follow-on: R$488 mm of primary proceeds First Brazilian company in the sector to be listed in the NYSE Acquisition of a 60% stake R$600 mm in FI-FGTS debentures (May/09) R$600 mm in FI-FGTS debentures (Dec/09) Acquisition of the remaining 40% Increase in stake from 60% to 80% Source: Consensus Bloomberg as of August 6 th,

5 SECTION 1 Competitive Advantages 5

6 Multifaceted Residential Products in All Income Segments Focused on the residential market, with 3 leading brands strategically positioned in all income segments Income Segment / Price Mid and Upper-Mid Unit price: > R$200 thousand Mid and Upper-Mid Unit price: R$70 R$500 thousand Affordable Entry-Level Unit price: R$50 R$200 thousand Sa ales Contr ribution 9M M10 49% 15% 36% Presence 44 cities in 14 states 60 cities in 22 states 92 cities in 14 states Completed Projects 17 projects/phases in projects/phases in projects/phases in 2009 Characteristics Vertical Metropolitan areas Custom projects Horizontal lot development Suburban areas Custom projects Horizontal / Vertical Metropolitan areas and surroundings Standardized products 6

7 Strong Demand Growth in All Segments Strong potential demand of around R$170 billion per year, being 58% in the mid and upper mid income segment and 42% in the affordable entry-level segment Income Bracket (Monthly) Number of Families (mm) New Families per Year (thousand) Gafisa Brands Potential Demand per Year (R$ bn) id and Upper-Mid Income Above R$ 32, R$ 16,000 - R$ 32, R$ 8,000 - R$ 16, New Families (thousands) Potential Demand (R$ bn) Mi R$ 4,000 - R$ 8, R$ 2,000 - R$ 4, New Families (thousands) 846 Affordable Entry-Level R$ 1,000 - R$ 2, Up to R$ 1, (113) 526 Potential Demand (R$ bn) 2 72 TOTAL ,526 1,526 Source: O Brasil Sustentável, FGV and Ernst & Young, 2007 Notes: 1. Assumes an average ticket of R$190, Assumes an average ticket of R$85,000 Gafisa: Positioned to capture growth in all income segments demand 7

8 National Footprint National footprint captures both rapidly growing and large metropolitan regions Geographic Footprint Landbank Distribution vs. GDP Distribution Landbank 3Q10 South 7% Midwest 12% Northeast 15% North 6% Other Southeast 9% R$ 16.6 Billion São Paulo 36% Rio de Janeiro 15% GDP Distribution Midwest 9% South 17% Northeast 13% North 5% Other Southeast 12% São Paulo 33% Rio de Janeiro 11% Real GDP Growth 1 6.6% 6.9% 8.0% Brand States 2 Cities Legend 4.7% % Consolidated South Midw est Southeast Northeast North Source: Company and IBGE Note: 1. Nominal GDP growth rate per year for adjusted by the average consumer price index (IPCA) of the period 2. Does not Include Brasilia Federal District. 8

9 Strategically Located Land Bank Gafisa has a strategic land bank that allows for continued project launches Land bank distribution 9M10 Land bank PSV (R$ million) Company Potential Future number of Swap sales units % R$ billion (% Gafisa) 1.6x ,823 4,285 (2,948) 3,676 16,551 4, x 10,195 1,536 3,962 4,735 2, ,576 7,810 Total % 2,167 5,729 IPO M10 Launches Gafisa Alphaville Tenda Net Actual 9M10 Acquisitions *Note: Tenda 2007 represents Fit + Bairro Novo 9

10 Proven Track Record of Execution Units Under Construction Projects under Construction 49,423 50, ,586 16, Q10 Units Completed Q10 Number of Engineers E: 15, ,206 10,831 9, , M10/2010E Q10 Intern Enginners Construction Architects On the Job Source: Gafisa 10

11 Strong Brand Recognition and Solid Reputation Gafisa benefits from its strong brand recognition and solid reputation through: (i) a higher sales speed (VSO); (ii) commanding premium prices; and (iii) easier access to asset swaps / partnerships Leading Brands Strong Brands in Every Segment 1 st Maior Construtora do Brasil: Largest Construction Company in Brazil 2008 / 2009 (ITCnet) 55 years in the Real Estate industry Completed more than 985 developments and 11 million m 2 Awards: Valor Top Management and Top Manager of the Year 1 st Top of Mind 2008 (Diário do Grande ABC / IBOPE) One of the best known brands in the affordable entry-level segment Completed more than 500 developments 1 st Reference in Urban Development Source: ITCnet, Revista Marketing, Valor Econômico Completed more than 40 developments and 3.4 million m 2 Awards: Best Social Responsibility and 2009 Top Social Alphaville Foundation 11

12 SECTION 2 Operating and Financial Performance 12

13 Launches, Contracted Sales and Revenues High growth rates over the last years... Launches (R$mm) Pre-Sales (R$mm) Net Revenues (R$mm) 4,196 4,200 to 4, ,005 1,005 1,970 2,949 2,236 2,301 1, ,698 1,913 1,265 1, , , ,329 1,345 3,248 1, ,510 2,766 1, , , ,004 1, ,215 3, ,757 2, , M10 Gafisa Note: E guidance range announced by the Company M10 Alphaville Tenda M10 13

14 EBITDA, Net Income and Results to be Recognized aligned with sustained growth in profitability Adjusted EBITDA 1 (R$ mm) and Margin (%) Net Income (R$ mm) and Margin 2 (%) Results to be Recognized (Backlog 4 ) (R$ mm) and Margin (%) 17.5% 18.5% to 20.5% % 12% 37.5% 38.2% 13.4% 15.0% 14.9% % % 9.9% % 34.6% 35.1% 35.2% 1, % 214 8% 1,015 1, % % % % M M10 0% M10 EBITDA (R$ mm) Margin (%) Tenda s goodwill net of provisions Notes: 1 Adjusted for stock options and excluding Tenda s goodwill net of provisions 2 Net income before minority interests and non-recurring expenses E guidance range announced by the Company 4 Gross Profit Lucro Líquido (R$ mm) Margem (%) REF (R$ mm) Margem (%) 14

15 Solid Balance Sheet 9M10 Leverage (R$ mm) Debt Composition (R$ mm) and Rates Net Debt / Shareholders Equity 55.6% SFH / Project Finance 1, % % (TR) Working Capital 553 CDI + (0.7% 4.2%) Debentures 527 CDI + ( %) 1,231 Investor Obligations 380 CDI Total 3, % 3,307 Debt Maturity Schedule 1 (%) 2,076 1,004 54% 46% % 44% % 67% % 85% % Total Debt Cash Net Debt Note: 1 Does not include investors obligations of R$380 mm Up to Sep/2011 Up to Sep/2012 Up to Sep/2013 Up to Sep/2014 Up to Sep/2015 Project Finance (R$ mm) Corporate Debt (R$ mm) 15

16 Trading Multiples Liquidation Value (R$mn) Blue Chips (3Q10) Company Gafisa Peer1 Peer2 Peer3 Peer4 Receivables from Sold Units 8,466 10,455 11,463 5,669 5,081 (-) Taxes (571) (706) (774) (383) (343) (-) Obligations from Sold Units (2,120) (3,022) (3,673) (1,462) (1,771) Avg (1) Mkt Value of Units for Sale 2,937 3,821 2,197 1,791 2,180 (-) Taxes (198) (258) (148) (121) (147) (-) Construction Obligations (790) (710) (329) (341) (986) Book Value of Land 751 2,315 2,448 1, (-) Swaps booked in Advances (94) (540) (1,756) (453) (68) (-) Payables from land acqs. (312) (557) (395) (304) (378) Other Assets (-) Other liabilities (183) Cash and Equivalents 1,231 1, ,014 1,284 (-) Corporate Debt (1,461) (2,527) (1,201) (1,131) (1,012) (-) SFH and other Project Finance (1,846) (2,259) (1,785) (461) (1,148) (-) Minority Shareholders (62) (115) (399) (219) - (+) Invest. in Subsidiaries Liquidation Value 6,035 8,209 6,653 4,754 3,389 BV Adjusted 4,959 7,876 6,012 4,015 3,102 BV 3,772 6,123 4,384 2,919 2,563 Deferred Income 1,203 1,780 1,747 1, Deferred Revenues 3,429 5,149 5,594 2,810 2,478 Deferred Costs and Expenses (2,120) (3,022) (3,673) (1,462) (1,771) Taxes (over Sales and Income) (106) (348) (173) (190) (167) Avg Stake 99% 98% 93% 95% 100% P/LV P/BVAdj P/BV Market Cap 5,264 11,607 9,314 7,653 3,977 # of shares 437 1, Closing price (December 30th) *Source: Barclays Capital Research and Companies' Information / (1) Excluding Gafisa 16

17 Gafisa s Differentiation Industry Leading Liquidity and Corporate Governance Multifaceted Residential Products in All Income Segments National Footprint Proven Track Record of Execution Strong Brand Recognition and Solid Reputation 17

18 APPENDIX A Tenda and Alphaville

19 Tenda: Differentiated Platform for the Affordable Entry- Level Segment Through Tenda, Gafisa has a differentiated and developed platform to capture growth in the affordable entry-level segment Sales Standardized Construction Process Centrally located and well diversified portfolio Duo Tower S Garden Life Well-trained and dedicated sales force helps clients with home purchasing and financing decisions Sales force located in areas with constant flow of people High variety of products and branch locations to best meet client needs Hybrid construction model with in-house and outsourced construction capabilities Standardized materials 4 project options in each production line Economies of Scale 19

20 Tenda: Blue-Print Mortgage ( Crédito Associativo ) The use of Crédito Associativo reduces the Working Capital requirement Financial Schemes Plano Piloto (company finance/project Finance) Plano Empresário (project Finance) Crédito Associativo (Blue-print mortgage) Description The developer finance all the construction cost and transfer the customer to the bank only at the end of construction Finances up to 80% of construction costs at lower rates (SPBE resources) Company receives 100% of PSV during the construction period (based on PoC) Typical Project Cash Flow for low-income project with land acquired for cash % Cash exposure over PSV Land Acquisition Commercial Laun nch Credito Associativo Beginning of construction Assumes that the land represented 10% of the PSV and was paid for in 6 installments Crédito Associativo is provided by Caixa Econômica Federal (CEF) to finance low-income projects/units. Plano Piloto End of constructio on Key Delivery No. of months With Crédito Associativo there is little WC requirement and the company cash flow already moves from negative to positive during the construction period; With a traditional financing scheme, we have to use project finance to cover the negative WC, until the delivery. 20

21 Reduced Cycle Tenda Traditional Construction Months Foundation Building and Finishing Title Process Collection Traditional Brick blocks Construction Method; Use of Ceramic and Concrete Blocs; High demand for finishing repairs; Construction Cycle lasts months; Aluminum Molds Construction Months Foundation Building and Finishing Title Process Collection Construction based on Aluminum Molds High constructions efficiency avoiding excessive wastes; Concrete walls done on site; Construction Cycle lasts 4-5 months; Effectiveness of the production process 21

22 Aluminum Mold Construction Method Tenda: Valle Verde Cotia, SP INCC Evolution (%) Last 12 months (Dec. 2010E) % Dec-07 Dec-08 Dec-09 Dec-10 Consolidated INCC Materials e Equipments Labor Labor costs always tend to surpass the other INCC items 22

23 Alphaville: Differentiated Business for Residential Land Communities Alphaville Concept Residential Area Leisure Area Steady Growth Launches (R$ mm) 549 Residential Area Commercial Area Multi-family Areas Partnership contracts via land swaps Construction only after pre-sales High sales velocity Alphaville Club Commercial Area Sustainable Business Model Residential Area Alphaville Foundation enables sustainable integration with the surrounding communities M10 Pre-Sales (R$ mm) and VSO (%) 49% 59% 59% % 300 n.a M10 23

24 APPENDIX B Real Estate Market Overview

25 Housing FinanceSystem (SFH) FundingSources Funding Sources Allocation of Resources Distribution of Resources Borrowers CEF Investments in Infrastructure Companies Registered Workers 8% of their Income FGTS (MCMV) TR + 3% SFH Companies TR+ Private Individuals Compulsory Housing Credit TR % Market Companies Savings Accounts TR+6.17% 30% Central Bank Compulsory Deposits 20%(TR+6.2%).10%(Selic) Private Individuals Companies Resources for Lending Private Individuals 25

26 Brazilian Savings & Loan System (SPBE) Growth in Brazilian Savings LTM Monthly Disbursements by the SBPE R$ Billion % 16% 17% 18% 19% 20% 20% 20% 20% 20% 19% 19% 16% R$ Billion % 43% 40% 41% 36% 37% 36% 37% 36% 37% 39% 39% 40% (%)Var YoY (%)Var YoY Brazilian savings are growing steadily, ensuring available credit for the coming years Scenario Funding Growth Savings Increase Available Credit (R$ bi) Year 1 60% 20% % 10% % 17% % 0% Housing Credit Sources guaranteed while new sources are under development Sources: Brazilian Central Bank and Banco Santander 26

27 Growing Credit Availability In recent years, the credit supply for real estate financing has increased substantially with lower interest rates and longer tenors Interest Rates vs. Housing Financing 35% 30% 25% 20% 15% 10% 5% 0% Dec- Sep- Jul- Apr- Feb- Nov- Sep- Apr- Nov- Jun- Dec- Jul Selic (%a.a.) Real Estate Financing (R$ billion) A favorable growth trend for credit availability began 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 12.25% by the end of Real Estate Financing Amount Funded (R$ bn) Housing Financing vs. GDP E SBPE FGTS Source: Central Bank, IBGE and ABECIP 1. Data from Warnock and Warnork (2008). For Brazil, consider data from 2010 E % 67% 67% 15% 10% 4% Denmark USA UK Chile Mexico Brazil Brazil: high growth potential for home financing 27

28 Real Price Variation for New Units - MRSP 3 Bedrooms Real Variation ( ): 22% 10,43% Base 100 0,70% -5,79% -1,91% -3,95% 22,38% 121,86% In 5 years, real prices have shown a 26% raise in the metropolitan area of São Paulo, mainly from small units; This raise happened specially on the last 12 months, taking benefit from the quick post-crisis recovery; Despite the raise since 2005, this raise is still in line with the average real income raise Jan Jun/10 Average Price Variation (YoY) 1 Bed 2 Bed 3 Bed SP Real Average Income ,93% 13,30% -19,80% 0,70% 1,20% ,83% -28,20% -8,40% -1,90% 5,10% ,70% 27,70% -0,60% -4,00% 1,80% ,63% 1,80% 1,10% 11,00% 2,40% ,50% 1,40% 11,60% -5,50% 3,20% Jan-Jul/10 28,07% 26,60% 35,10% 22,50% 2,70% Cumulate 26,4% 35,8% 11,3% 21,9% 17,5% 80% 60% 40% 20% 0% -20% -40% -60% Prices Preços YoY YOY jan/06 jul/06 jan/07 jul/07 jan/08 jul/08 jan/09 jul/09 jan/10 Fonte: MCM Consultores Região Metropolitana de São Paulo 28

29 Government Programs MCMV I Government programs were created to reduce the significant housing deficit in the lower income segments Highlights Simulation of Potential Impact on Market Size Financing for one million houses with up to R$23,000 in subsidies to families with income of up to 10x the monthly minimum wage (R$4,650) Average Unit Price: R$80k Before Minha Casa, Minha Vida Program Subsidy 0 16,000 R$34 billion in subsidies (Federal Government, FGTS, BNDES) Mortgage 80,000 64,000 Cost (TR+) 7% 5% Financing of homes with a price range of R$80,000 to R$130,000 Monthly installments Interest Rates ranging from TR+5% TR+8% Minimum monthly income 2,661 1,969 Homebuilders can finance 100% of the property value Equivalent of minimum wages Market Size (millions of homes) No down payment and no installments during the construction period (for families with income up to 3x the minimum wage) Additional market of approx. 10 million houses Source: Market Reports 29

30 Government Programs MCMV II Government renewed MCMV program, giving more visibility to the Real Estate sector: Highlights Income distribution Financing for two million houses up to 2014; MCMV II income distribution followed the same distribution of the contracted units from MCMV I: R$72 billion in subsidies; Continued growth for the next 4 years already committed; General details to come up to the beginning of 2011; It confirms the government commitment to provide financing for entry level homebuyers. # of units: 1 million 20% 40% 40% MCMV I -target 2 million 11% 10% 29% 30% 60% 60% MCMV I -up to March 1st/ MW 3-6 MW 6-10 MW MCMV II -target Source: CS, UBS, CEF, Market reports 30

31 Efficiency Gains under MCMV Program Tenda contracted 22,914 units through September and has close to 8,000 units under CEF analysis Total Contracted Units under "MCMV" I Minimum Wages Caixa Econômica Fereral (1) 0-3 MW MW TOTAL (1) Until October 8 th, 2010 for CEF. Pipeline Period To be contracted (2) Contracted % MCMV TOTAL % Q % Q % Q % Q TOTAL % (2) Units contracted in 2010 and already filed with CEF through Sep Transferred Period Units % MCMV % 1Q % 2Q % 3Q % TOTAL % 31

32 CEF Real Estate Financing Caixa Econômica Federal has reached historical records of real estate financing, and is responsible for 73% of the market contracts Housing Financing Contracts (R$ bn) CEF vs. Market Financing of New Units ( 000 units) 1, Up to Nov 10 Financing (R$ bn) Financing Amount ('000) MCMV Contracts Units ( 000) Out/2010 Caixa - Others Caixa - MCMV Market Inventory of Received Proposals ( 000 units) Projects 6, Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Sep-Nov a 3 SM 3 a 6 SM 6 a 10 SM ,219 3, , Jun-09 Sep-09 Dec-09 Apr-10 Nov-10 0 a 3 MW 3 a 6 MW 6 a 10 MW Source: Caixa Econômica Federal 32

33 APPENDIX C Operating and Financial Highlights 33

34 Main Financial and Operational Highlights Operating and Financial Highlights (R$ million) 3Q10 3Q09 3Q10 vs. 9M10 vs. 9M10 9M09 3Q09 (%) 9M09 (%) Launches % % Launches, units % % Contracted sales ,3% ,0% Contracted sales, units % % Contracted sales from Launches % % Contracted sales from Launches - % 46,8% 56,0% -922 bps 56,0% 48,3% 764 bps Net revenues % % Adjusted Gross profit (w/o capitalized interest) % % Adjusted Gross margin (w/o capitalized interest) 32,3% 31,6% 77 bps 30,7% 30,1% 53 bps Adjusted EBITDA (1) % % (1) Adjusted EBITDA margin (1) 20,6% 19,8% 77 bps 19,7% 17,0% 265 bps Adjusted Net profit (2) % % Adjusted Net margin (2) 13,9% 10,1% 378 bps 11,7% 10,7% 102 bps Net profit % % EPS (R$/share) 0,27 0,24 11% 0,65 0,61 7% Number of shares ('000 final) % % Revenues to be recognized % % REF margin (3) 38,2% 35,0% 322 bps 38,2% 35,0% 322 bps Net debt and Investor obligations % % Cash and availabilities % % (Net debt + Obligations) / (Equity + Minorities) 55,6% 74,1% bps 55,6% 74,1% bps (1) Adjusted for stock option plans expenses (non-cash) and Tenda goodw ill net of provisions. 34

35 Ratings and Balance Sheet R$ 000' 3Q10 3Q09 2Q10 ASSETS Curre nt Asse ts Cash and cash equivalents Restricted cash in guarantee to loans and resctricted credits Receivables from clients Properties for sale Other accounts receivable Deferred selling expenses Deferred taxes Prepaid expenses Long-te rm Asse ts Receivables from clients Properties for sale Deferred taxes Other Investments Property, plant and equipment Intangible assets Total Asse ts LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities 3Q10 3Q09 2Q10 Loans and financing Debentures Obligations for purchase of land and advances from clients Materials and service suppliers Taxes and contributions profit sharing Provision for contingencies Dividends Deferred taxes Other Long-term Liabilities Loans and financings Debentures land Deferred taxes Provision for contingencies Other Deferred income on acquisition Unearned income from partial sa Minority Shareholders Corporate Rating National Scale Perspective Last update FITCH Stable September/2010 Moody s Rating A- A1 Stable September/2010 S&P A Stable October/2010 Share holders' Equity Capital Treasury shares (1.731) (18.050) (1.731) Capital reserves Revenue reserves losses Liabilities and Shareholders

36 Why Cash Burn should change to positive in 2011? Cash burn continue high mainly due to Tenda s units launched and sold mainly in 2007 and 2008 that are being built using it s own capital, instead of the mechanism of Blue-Print mortgages (Crédito Associativo); Going forward, Tenda is gradually increasing the use of Associative Credit over current sales (that already reached 62% in the 3Q10), contributing to reduce the Working Capital needs; From now until June/11, Tenda will transfer approximately 7,000 units that did not contracted Blue-Print mortgage, meaning that the invested money will return to Company s cash. Tenda is delivering units that did not contracted Blue-Print mortgage in the past. Tenda s unit sales by type of finance Tenda s Transferred of Concluded Units to CEF - Pipeline 9,505 11,576 15,871 9,733 3, % 78% 62% 49% 38% 2,922 22% 38% 51% 62% 757 2,236 2, M10 3Q10 Blue-Print Mortg. (Crédito Associativo) Tenda's Financing/Project Finance 3Q10 4Q10E 1Q11E 2Q11E Bank Mortgage 36

37 SG&A (Synergies) (R$'000) 3Q10 3Q09 2Q10 3Q10 x 3Q09 3Q10 x 2Q10 Consolidated Selling expens es 53,887 55,556 61,140-3% -12% G&A expens es 59,317 57,601 55,125 3% 8% SG&A 113, , ,265 0% -3% Selling expens es / Launches 4.4% 10.8% 6.1% -644 bps -171 bps G&A expens es / Launches 4.8% 11.2% 5.5% -640 bps -67 bps SG&A / Launches 9.2% 22.0% 11.5% bps -238 bps Selling expens es / Sales 5.3% 6.9% 6.9% -165 bps -158 bps G&A expens es / Sales 5.8% 7.2% 6.2% -137 bps -37 bps SG&A / Sales 11.1% 14.1% 13.1% -303 bps -195 bps Selling expens es / Net revenue 5.6% 6.3% 6.6% -70 bps -96 bps G&A expens es / Net revenue 6.2% 6.6% 5.9% -37 bps 25 bps SG&A / Net revenue 11.8% 12.9% 12.5% -107 bps -71 bps SG&A Expenses / Net Revenue G&A Expenses / Net Revenue 60% Acquisition of Tenda 16.9% 17.3% 15.2% 25.4% 18.9% 100% Incorporation of Tenda 15.7% 14.9% 12.9% 12.0% 12.5% 11.8% 10.6% 8.4% 8.0% 13.5% 10.3% 8.4% 6.6% 6.7% 6.3% 5.9% 6.2% 37

38 A Typical Gafisa Project Delivery/ Mortgage End of installments Licensing: 6 to 9 months Launch Start Construction 0M 6M 12M 18M 24M 30M 36M Up to 100M Sales 30% 60% 70% 80% 87% 94% 100% % Costs - 2,5% 15% 35% 65% 85% 100% Revenues - 1,5% 10,5% 28% 57% 80% 100% Collections (cumulative) 1% 4% 9% 11% 18% 25% 85% 100% 38