2Q12 Results Conference Call. August 10 th, 2012

Transcription

1 2Q12 Results Conference Call August 10 th,

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. 1

3 Overview of 2Q12 and 1H12 Results - Duilio Calciolari, CEO Financial Performance André Bergstein, CFO 2

4 2Q12 and 1H12 Highlights and Recent Developments Gafisa Group deliveries increased 38% y-o-y to 6,032 units in 2Q11, and 64% y-o-y to 12,197 in 1H12; 51% of the mid-range of the company s full year guidance Consolidated operating cash flow reached R$361 mn in 1H12; 60% of the mid-range of the Company s full year guidance (R$500-R$700 mn); consolidated free cash generation (cash burn) stood at R$231 mn in 2Q12 and R$155 mn in 1H12 Launches reached R$546.5 mn, with sales of R$630.3 mn in 2Q12 Consolidated sales velocity was 16.1%, or 20.1% excluding Tenda Status of AlphaVille Acquisition: the parties have not reached an agreement; process was submitted to arbitration on an exclusive and final basis 3

5 Focus on Positive Cash Generation Deleveraging Strategy Across the Group, 1H12 unit deliveries were consistent with the Company s full-year target Consolidated free cash generation stood at R$231 million in 2Q12 Consolidated operating cash flow reached R$361 mn in 1H12; 60% of the mid-range of the Company s full year guidance (R$500-R$700 mn) Cash Generation/(Burn) (3Q10 2Q12) Cash Flow from Operations 1H12 (R$ 000) Cash burn Consolidated Real Cash generation 231 Inflow 2,081,716 Sales Revenues 924,613 Repasses (Customers transferred) 1,018,618 Land Bank Sales 87, Other 50,812 Outflow (1,720,315) Construction (990,589) -200 Sales + Development Expenses (225,273) Land Bank Acquisition (158,558) Taxes + G&A + Other (345,894) Cash Flow from Operations 361, Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Note: Net expenses related to land bank sales/acquisitions of R$88 million 4

6 3 SALES OVER LAUNCHES (%) 2 SALES OVER SUPPLY SoS (%) Sales from Launches have Remained Healthy, Despite Lower Sales over Supply Y-o-Y INVENTORY AT 1 MARKET VALUE Inventories BoP1 Launches Dissolution Pre-Sales Price Adjust + Other5 Inventories EoP2 % Q-o-Q3 VSO4 Gafisa (A) 1,957, ,900 - (456,383) (91,423) 1,875,945-4,2% 19,6% AlphaVille (B) 636,258 80,619 - (158,184) 14, ,898-10,0% 21,6% Total (A) + (B) 2,594, ,519 - (614,566) (77,218) 2,448,842-5,6% 20,1% Tenda (C) 915, ,127 (344,855) (61,047) 838,261-8,4% 1,8% Total (A) + (B) + (C) 3,509, , ,127 (959,421) (138,265) 3,287,103-6,3% 16,1% Note: 1) BoP beginning of the period 1Q12. 2) EP end of the period 2Q12. 3) % Change 2Q12 versus 1Q12. 4) 2Q12 sales velocity. 5) Project cancelations 20% 14% Gafisa 29% 22% 22% AlphaVille 26% 20% Gafisa Group Ex-Tenda 28% 16% 2% Tenda 18% 0% 16% Gafisa Group 10% 25% 2Q12 1Q12 2Q11 0% 2Q12 1Q12 2Q11 0% 2Q12 1Q12 2Q11 0% -11% 2Q12 1Q12 2Q11 2Q12 1Q12 2Q11 0% 42% 32% Gafisa 43% 55% AlphaVille 62% 58% Gafisa Group Ex-Tenda 45% 48% 45% Tenda 35% 45% Gafisa Group 48% 42% 0% 0% 0% 0% 0% 0% 0% 2Q12 1Q12 2Q11 2Q12 1Q12 2Q11 2Q12 1Q12 2Q11 2Q12 1Q12 2Q11 2Q12 1Q12 2Q11

7 Consolidated Land Bank Aligned with Company s Strategy and Core Markets Pipeline of projects to be developed in line with current strategy for each segment During 1Q12, Tenda land bank was readjusted to focus on core regions, 2Q12 all remaining non-strategic land bank were excluded, according with Tenda s new model, and are available for sale PSV - R$ million (%Gafisa) %Swap Total %Swap Units %Swap Financial Potential units (%Gafisa) Potential units (100%) Gafisa São Paulo 3,634,675 33% 32% 1% 7,981 9,121 Rio de Janeiro 1,267,447 43% 43% 0% 2,059 2,069 Total (A) 4,902,122 36% 35% 1% 10,039 11,189 AlphaVille Total (B) 8,348,740 99,2% 0% 99,2% 34,575 62,800 Tenda São Paulo 891,078 16% 16% 0% 7,317 7,404 Rio de Janeiro 246,987 0% 0% 0% 2,379 2,379 Nordeste 576,936 29% 29% 0% 4,827 4,912 Minas Gerais 432,583 73% 33% 40% 4,009 4,128 Total (C) 2,147,584 33% 22% 11% 18,532 18,823 Total (A) + (B) + (C) 15,398,446 91,3% 3,9% 87,5% 63,147 92,813 6

8 Unit Delivery Consistent with Full Year Guidance During 1H12, Gafisa Group delivered 68 projects / phases and 12,197 units, representing R$2.3 billion in PSV Gafisa: 23 projects/phases, 4,026 units, R$1.3 bn AlphaVille: 6 projects/phases, 1,637 units, R$310 mn Tenda: 39 projects/phases, 6,534 units, R$709 mn Last year, Gafisa delivered 118 projects / phases and 22,679 units, representing R$3.7 billion in PSV Gafisa: 34 projects/phases. 5,593 units, R$1.9 billion AlphaVille: 12 projects/phases, 2,624 units, R$530 million Tenda: 74 projects/phases, 14,462 units, R$1.3 million 7

9 Gafisa s Focused On Strategic Markets Gafisa was able to launch 45% of the mid-range of 2012 guidance of R$1.5 billion for the segment In the 1H12, 100% of Gafisa s segment launches were in SP region Lower margin projects are being delivered and the other Market projects are expected to be completed in the mid and short-term Launches 2Q12 ECLAT (Ferreira de Araujo) Location: São Paulo - SP PSV Gafisa: R$ MM % Sold: 34% Launch date: May Like Brooklin Location: São Paulo - SP PSV Gafisa: R$ MM % Sold: 49% Launch date: May Energy Location: São Paulo PSV Gafisa: R$ MM % Sold: 44% Launch date: June COLORATTO Location: São Caetano do Sul - SP PSV Gafisa: R$ MM % Sold: 43% Launch date: June Mistral Location: São Paulo - SP PSV Gafisa: R$ MM % Sold: 47% Launch date: June 8

10 AlphaVille Continues to Launch Good Demand Developments AlphaVille delivered 1,637 units during the 1H12 Greater participation in the total product mix 33% of the total launches in 1H12 vs 18% a year ago Sales from launches represented 51% of total sales, while 49% corresponded to sales from inventory Launches 2Q12 Terras AlphaVille Anápolis Location: Anápolis - GO PSV AlphaVille: R$ MM % Sold: 62% Launch date: June AlphaVille Mossoró P2 Location: Mossoró - RN PSV AlphaVille : R$ MM % Sold: 5% Launch date: June 9

11 Tenda - Getting the Basics Right Units contracted by financial institutions have accelerated since Jun/11 During 1H12, Tenda transferred 6,422 units to financial institutions; 53% in mid-range of 10 14k guidance Of the 4,957 units returned to inventory, 62% have been resold to qualified customers within the 1H12¹ Customers Transferred (# of units) vs. % MCMV 95% 95% 89% 92% 92% 85% 81% 83% 67% 89% Second quarter gross pre-sales increased 38% Q-o-Q to R$344.8 million (a total of R$45 mn sold at Feirão da Caixa) Units are being sold only to customers that have access to mortgage and can be immediately transferred to financial institutions All projects qualified for financing under the MCMV or SFH programs Tenda has nearly 18,000 units to be delivered Transferred units to CEF MCMV (%) Contracted Units (# of units) versus % MCMV 88% 87% 78% 79% 81% 82% 84% 77% 78% 74% Note: ¹ 6,235 dissolutions in total, of which 1,278 are canceled projects and 4,957 not canceled Contracted units under financial institutions MCMV (%) 10

12 Overview of 2Q12 and 1H12 Results - Duilio Calciolari, CEO Financial Performance André Bergstein, CFO 11

13 Consolidated Margins Have Not Yet Reached Normalized Levels Legacy Projects with Lower Margins, To Be Delivered in the Short Mid-Term Contribution by Brand 1H12 Gafisa AlphaVille Gafisa + AlphaVille Tenda Total 1H12 Net Revenues (R$mm) 1,080, ,246 1,371, ,396 1,968,370 Revenues (% contribution) 55% 15% 70% 30% 100% Gross Profit (R$mn) 232, , ,675 83, ,821 Gross Margin (%) 22% 53% 28% 14% 24% Gross Profit (% contribution) 49% 33% 82% 18% 100% EBITDA 171,667 91, ,063 (9,125) 253,938 EBITDA Margin 16% 31% 19% -2% 13% EBITDA (% contribution) 68% 36% 104% -4% 100% Consolidated Key Financial Figures 2Q12 2Q11 Y/Y(%) 1H12 1H11 Y/Y(%) Net revenues 1,040, ,525 6% 1,968,370 1,716,273 15% Gross profit 279, ,535 73% 480, ,695 74% Gross margin 26,8% 16,4% 1044 bps 24,4% 16,1% 830 bps Adjusted EBITDA 148,751 77,496 92% 253, , % Adjusted EBITDA (ex-tenda) 141, % 263, ,316 75% Adjusted EBITDA Margin 14% 8% 643 bps 13% 6% 672 bps Adj. EBITDA Margin (ex-tenda) 19% 12% 669 bps 19% 13% 640 bps Net Profit 1,046 (31,843) -103% (30,468) (75,134) -59% Note: We adjust our EBITDA for expenses associated with stock option plans, as this is a non-cash expense. Net Revenues include 6% of sales from land bank that did not generate margins 12

14 Operating Expenses The selling expenses remained stable on a Y-o-Y basis at R$78 million; increased 34% sequentially. During 2Q12, G&A expenses reached R$93 million, a 18% increase Q-o-Q, and 54% increase over the R$60 million posted in 2Q11, as a result of: 1) 57% of the annual change in the G&A related to provisions related to the distribution of variable compensation 2) 33% of changes of G&A expenses related to the expansion of AlphaVille s operations given the increased contribution to the Gafisa Group mix 3) Other expenses representing the remaining 10% SG&A expenses totaled R$171 million in 2Q12, a 25% increase on the R$138 million posted in 2Q11 13

15 Gafisa Group Revenues From Previous Launch Periods 1S12 1S11 Ano Lançamento PreSales % PreSales Revenues % PreSales % PreSales Revenues % Gafisa 2012 Launches % % - 0% - 0% 2011 Launches % % % % 2010 Launches % % % % 2009 Launches % % % % Land bank - 0% % - 0% - 0% Total Gafisa % % % % AlphaVille 2012 Launches % % 0% 0% 2011 Launches % % % % 2010 Launches % % % % 2009 Launches % % % % Land bank - 0% - 0% - 0% - 0% Total AUSA % % % % Tenda 2012 Launches - 0% - 0% - 0% 0% 2011 Launches (36.402) 49% % % % 2010 Launches (92.125) 123% % % % 2009 Launches % % (62.720) -14% % Land bank - 0% % - 0% - 0% Total Tenda (74.715) 100% % % % Consolidado 2012 Launches % % - 0% - 0% 2011 Launches % % % % 2010 Launches % % % % 2009 Launches % % % % Land bank - 0% % - 0% - 0% Grupo Gafisa Total Grupo Gafisa % % % % 14

16 Backlog of Results¹ Reached R$4.1 bn Gafisa Group Consolidated Results to Be Recognized (REF) (R$ million) 2Q12 1Q12 Q/Q(%) 2Q11 Y/Y(%) Results to be recognized % % Costs to be incurred (units sold) ( ) ( ) -3% ( ) -3% Results to be Recognized % % Backlog Margin 36% 36% 5bps 36% -68bps Results to Be Recognized (REF) by Segment (R$ million) 2Q12 Gafisa (A) Tenda (B) AlphaVille (C) (A) + (B) + (C) (A) + (C) Revenues to be recognized Costs to be incurred (units sold) ( ) ( ) ( ) ( ) ( ) Results to be Recognized Backlog Margin 35% 25% 53% 36% 39% 15

17 During 2Q12, Net Debt to Equity Decreased to 112% from 122% in 1Q12 Project finance represents 51% of total debt Consolidated free cash generation of R$231 million in 2Q12, R$155 mn in 1H12; expanding leverage absorption capacity Corporate debt accounted for 49% of total debt by the end of June 30, 2012 vs. 52% in the 1Q12 55% of short-term debt is represented by project finance (R$ millions) 4Q11 1Q12 2Q12 Project financing (SFH) Debentures - FGTS (Project Finance) 1,214 1,244 1,213 Debentures - Working Capital Working Capital 1,171 1,138 1,138 Investor Obligations Total Consolidated Debt + Obligations 4,228 4,269 4,186 Consolidated Cash and Cash Availabilities ,097 Net Debt 2,771 2,957 2,758 Net Debt and Investor Obligations 3,245 3,321 3,088 Equity + Minority Shareholders 2,747 2,728 2,746 (Net debt + Obligations) / (Equity + Noncontrolling int) 118% 122% 113% Debt Profile Project Finance Debt 1,899 2,062 2,150 Corporate Debt and Investor Obligations 2,329 2,207 2,036 Total Consolidated Debt + Obligations 4,228 4,269 4,186 Project Finance (% stake of total debt) 45% 48% 51% Corporate Debt (% stake of total debt) 55% 52% 49% 16

18 Well Structured Debt Schedule and Profile Gafisa has R$1.7 billion or 41% of total due to short term. Of this total, Project finance accounts for 55%. Until Until Until Until After (R$million) Avg. Cost (% p.a.) Total Jun /13 Jun /14 Jun /15 Jun /16 Jun /16 Debentures - FGTS (A) TR + (8,22% - 10,20%) 1,213, , , , Debentures - Working Capital (B) CDI + (1,30% - 1,95%) 567, , , , ,932 7,077 Project Financing SFH (C) TR + (8,30% - 12,00%) 936, , , ,982 20,173 0 Working Capital (D) CDI + (1,30% - 2,20%) 1,138, , , , ,690 27,975 Total (A)+(B)+(C)+(D) = (E) 3,855,741 1,546,049 1,307, , ,795 35,052 Investor Obligations (F) CDI + (0,235% - 1,00%) / IGPM+7,25% 329, , ,070 13,689 8,669 4,106 Total consolidated debt (G) 4,185,509 1,704,283 1,452, , ,464 39,158 % Total (H) 10,06% 41% 35% 17% 7% 1% Project Finance due to corresponding period as % of total debt Corporate Debt due to corresponding period as % of total debt 51% 55% 62% 40% 7% 0% 49% 45% 38% 60% 93% 100% 17

19 Receivables + Inventory vs Construction Obligations R$ million Receivables Inventory at market value Total Construction obligations Gafisa (A) 5,261,244 1,875,945 7,137,189 1,995,811 AlphaVille (B) 1,322, ,898 1,895, ,298 Tenda (C) 2,363, ,261 3,202,229 1,152,908 Total (A) + (B) + (C) 8,947,916 3,287,104 12,235,020 3,652,017 Receivables (R$000) Consolidated 2Q12 1Q12 Q-o-Q (%) 2Q11 Y-o-Y (%) Receivables from developments LT (off balance sheet) 4,280,386 4,398,947-3% 4,438,658-4% Receivables from PoC ST (on balance sheet) 3,745,487 3,638,581 3% 4,153,855-10% Receivables from PoC LT (on balance sheet) 922,043 1,101,138-16% 1,188,791-22% Total Gafisa Group 8,947,916 9,138,666-2% 9,781,304-9% 18

20 Outlook Results driven Strategy: 1. For 2012, launches are expected to be between R$2.7 and R$3.3 billion 2. In 1H12, the Company delivered 6,032 units and transferred 6,422 Tenda units to financial institutions 3. The Company expects to generate between R$500 R$700 million in operating cash flow for the full year of 2012 Launches Guidance 2012E Mid-range Achievement 1H12 (1H12 as a % of FY) Consolidaded Launches (R$2.70 R$3.30bn) R$3.00bn R$1.01bn 34% Breakdown by Brand Launches Gafisa (R$1.35 R$1.65bn) R$1.50bn R$681mn 45% Launches AlphaVille (R$1.08 R$1.32bn) R$1.20bn R$330mn 27% Launches Tenda (R$270 R$330mn) R$300 mn R$0 0% Guidance 2012 Mid-range Achievement 1H12 (1H12 as a % of FY) Operational Cash Flow (R$500 R$700 mn) R$600 R$361 60% Guidance of Units to be Delivered 2012E Mid-range Achievement 1H12 (1H12 as a % of FY) Consolidated # Units to be Delivered (22-26K) 24,000 12,197 51% Breakdown by Brand # Units to be Delivered Gafisa ( ) 7,200 4,026 56% # Units to be Delivered AlphaVille ( ) 4,800 1,637 34% # Units to be Delivered Tenda ( ) 12,000 6,534 54% Customers to be transferred at Tenda 2012E Mid-range Achievement 1H12 (1H12 as a % of FY) Consolidated # Customers to be transferred (10-14K) 12,000 6,422 53% 19