1Q10 Results Conference Call’s Presentation

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1Q10 Results

Villa Flora – Low Income Segment

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Disclaimer

Results 1Q10

This material is a presentation of general background information about Rossi Residencial S.A. (“Rossi”) as of the date of this presentation.Information contained herein has been summarized and does not purport to be complete. This presentation shall not be considered an advice ofinvestment by potential investors. This presentation is strictly confidential and may not be disclosed to any third person. There are norepresentations or warranties, express or implied, regarding the accuracy, fairness, or completeness of the information presented herein, which shallnot support any decision of investment.

This presentation contains statements and information that are forward-looking pursuant section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities and Exchange Act of 1934. Such forward-looking statements and information are only predictions and cannot assureRossi’s future performance. Investors have been cautioned that any such forward-looking statements and information are subject to many risks anduncertainties relating to the operations and business of Rossi and its subsidiaries. As a result of such risks and uncertainties, the actual results ofRossi and its subsidiaries may be materially different from any future result expressed or implied in the forward-looking statement or informationcontained herein.

Although Rossi believes that the expectations and assumptions reflected in the forward-looking statements and information are reasonable and havebeen based on data currently available to its officers and directors, Rossi cannot guarantee future results or events. Rossi does not assume thecommitment of update any of the forward-looking statement of information.

Securities may not be offered or sold in the United States unlesss they are registered or exempt from registration under the Securities Act of 1933,as amended. Any offering of securities to be made in the United States will be made by means of an offering memorandum that may be obtainedfrom the underwriters. Such offering memorandum will contain, or incorporate by reference, detailed information about Rossi and its subsidiaries,their business and financial results, as well as its financial statements.

This material is for distribution only to person who (i) have professional experience in matters relating to investments falling within Article 19 (5) ofthe Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”), (ii) are personsfalling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Financial Promotion Order, (iii) areoutside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated orcaused to be communicated (all such persons together being referred to as “relevant persons”). This material is directed only at relevant personsand must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this material relatesis available only to relevant persons and will be engaged in only with relevant persons.

This presentation does not constitute an offer, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither thispresentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.

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Heitor Cantergiani

CEO

Highlights

Leonardo Diniz

Sales Officer

Operating Performance

Cássio Audi

CFO and IRO

Financial Performance

Agenda

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Operating Highlights

Total Launches of R$ 722 million (R$ 571 million – Rossi’s share), up 350% compared to 1Q09

SOS ratio of 25% 5th consecutive quarter of improvement

Contracted sales of R$ 842 million, up 146% compared to 1Q09

Contracted sales Rossi’s share of R$ 666 million, up 136% compared to 1Q09

Low Income Segment

Launched PSV (Rossi’s share) of R$ 417 million, up 358% compared to 1Q09, 73% of total launches

SOS reaches record of 37.4%

Sales over launches (Rossi’s share) in 1Q10 achieved 51% of PSV ( Rossi’s share)

Total sales of R$ 456.7 million (R$ 368.3 million Rossi’s share)

Financial Performance

Increase of 126% in Net Income (vs. 1Q09), reaching R$ 64 million

Net Margin of 13.1% in 1Q10 (growth of 3.5 p.p vs. 1Q09)

EBITDA reaches R$ 109 million, up 110% compared to 1Q09

EBITDA Margin reaches 22.1% vs. 17.5% in 1Q09 (growth of 4.6 p.p )

Adjusted ROE annualized reaches 16,2% in the 1Q10

(¹)Adjusted annualized ROE excludes follow-on and includes the quarter’s cash burn.

1Q10 Highlights

555

Launches and Sales

Villa Flora – Low Income Segment

6

27%

14%

14%9%

8%

8%

7%

6%

5%3%

São Paulo (other cities)

Rio Grande do Sul

São Paulo (RMSP*)

Distrito Federal

Espírito Santo

Goiás

Minas Gerais

Mato Grosso do Sul

Amazonas

Ceará

72%

23%

5%

Low Income

Conventional

Commercial

Nossos Resultados em Números

Launches Breakdown by Income Segment and State – Total PSV

Launches

Launches PSV (R$ million)

143

57118

151

1T09 1T10

Rossi Partners

722

161

91

417

18

102

1Q09 1Q10

Launch PSV (R$ million)Low Income Segment

Rossi Partners

+378%

109

519

+350%

RMSP - Região metropolitan Sao Paulo

7

54%

15%

13%

9%

6%2%

Low Income

More than R$ 500,000

R$ 200,000 - R$ 350,000

R$ 350,000 - R$ 500,000

Commercial Properties

Up to R$ 200,000

21%

17%

16%10%

9%

7%

5%

4%

1%4%

4%

São Paulo (RMSP)

Rio Grande do Sul


Distrito Federal

Rio de Janeiro

Minas Gerais

Amazonas

Espírito Santo

Paraná

Goiás

Mato Grosso do Sul

Pernambuco

Contracted Sales

Sales Breakdown by Income Segment and State – Total PSV

283

66660

176

1Q09 1Q10

Contracted Sales (R$ million)

Rossi Partners

+146%

342

842

RMSP - Região metropolitan Sao Paulo

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Real Estate Market: Industry and Company OverviewSuccessful Launches in the quarter

Gragoatá Bay Residênciais

Niterói - RJ

318 unidades 86% vendido)

VGV % Rossi: R$ 106 milhões

Lançamento: Nov/09

Rossi Jardins Praças Residenciais

Belo horizonte - MG

132 unidades (80% vendido)


Lançamento: Dez/09

Rossi Ideal Cores de Mogi

Mogi das Cruzes - SP

Lançamento Jan/10 – 80% vendido

Speciale

Gama - DF


VGV % Rossi: R$ 19 milhõesLançamento: Nov/09

Rossi Ipiranga One

São Paulo - SP -

180 units (100% sold )

PSV % Rossi: R$ 36 millionLaunched : Mar/10

Gragoatá Bay Residênciais

Niterói - RJ

318 unidades 86% vendido)


Lançamento: Nov/09

Rossi Ideal Pitangueiras

Hortolândia -


PSV% Rossi: R$ 10 million

Launched : Mar/10

TotalitéSão José do Rio Preto - SP


VGV % Rossi: R$ 22,5 milhões

Lançamento: Out/09

Rossi Ideal Vila das Acácias

- MG

240 units (90% Sold)

PSV % Rossi: R$ 16 million

Launched : Mar/10

Rossi Jardins Praças Residenciais

Belo horizonte - MG



Lançamento: Dez/09

Rossi Passeio Residencial

Porto Alegre - RS


PSV% Rossi: R$ 86 million

Launched : Mar/10





Rossi Ideal Águas Claras e Vitória Régia

Campinas - SP



Lançamento: Dez/09

Rossi Ideal Laranjeiras

Hortolândia - SP


PSV % Rossi: R$ 10 million

Launched: Mar/10

SP

Uberlândia

320 units (72% sold)

Launched : Jan/10PSV % Rossi: R$ 19 million

9

69120

163

266 259

214

284

354

355407

1Q09 2Q09 3Q09 4Q09 1Q10

Launch Sales Inventory Sales


Constant growth in Sales velocity

SOS and Inventory

15%

20%21%

23%25%

1Q09 2Q09 3Q09 4Q09 1Q10

SOS (%) - 5th Consecutive Quarter of Improvement Sales of inventory (R$ million)

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Land bankR$ million

Low Income Segment

Up toR$ 200.000

R$ 200.000 toR$ 350.000

R$ 350.000 toR$ 500.000

Above R$ 500.000

Commercial Lots Total

Amazonas 189 59 214 66 118 646

Bahia 94 879 479 1,452

Ceará 219 174 104 498

Distrito Federal 973 25 69 567 1,633

Espírito Santo 694 105 799

Goiás 925 925

Mato Grosso do Sul 45 45

Minas Gerais 2,253 171 2,424

Paraná

Pernambuco 92 92

Rio de Janeiro 979 359 124 906 88 26 2,483

Rio Grande do Norte 205 82 82 286

Rio Grande do Sul 1,739 988 479 3,206


1,884 135 2,343 1,762 862 231 798 8,015

São Paulo (Metropolitan Region)

366 163 404 322 1,255

Total 10,659 577 4,953 3,413 2,230 1,129 798 23,760

Distribuição 45% 2% 21% 14% 9% 5% 3% 100%

Expertise Rossi e Diferenciais Competitivos

Land bank diversified by region and product

45% of Land bank focused on Low Income Segment

Land bank 1Q10 (in R$ million) - PSV by State and Income Segment

Land bank

SFH (Brazilian financial system) = 83%

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24%

29%

47%

Cash Units swap Financial swap

Potential PSV (100%): R$ 23,8 billion

Rossi’s share: R$ 16.0 billion

148 lands and 73 cities

11 million of m2 on area under construction

135 mil unities for future launches

Expertise Rossi e Diferenciais CompetitivosExpertise Rossi e Diferenciais Competitivos

R$ 23.8 billion of PSV on Landbank

Land bank

76% acquired by swaps

Land Bank Variation - Rossi´s share

(R$ billion)

16.0 15.2

0.6 1.4

Initial landbank 1Q10 Launches New acquisitions Final landbank 1Q10

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Sales Breakdown

Market segment: Rossi Vendas São Paulo, Rio de Janeiro, Porto Alegre Campinas, Fortaleza, Brasília, Espírito Santo, Campo Grande and Goiania.

We plan to open new regional offices in Curitiba, Belo Horizonte and Manaus in June of 2010.

Sales on operations region

Rossi Vendas

Brokers by city

89

77

127

51

40

35

1716

10

São Paulo

Porto Alegre

Rio de Janeiro

Campinas

Brasília

Espírito Santo

Fortaleza

Goiânia

Campo Grande

14%

86%

Launch Sales

Inventory Sales

29,4%

70,6%

ROSSI VENDAS

Other

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Rossi Ideal

Rossi Ideal

Rossi Ideal stores received an average of 9,000 visitors per quarter, equivalent to an average of 100

visits per day.

Photos of the first “Minha casa minha vida” Fair in Uberlândia/MG:

14141414

Financial Highlights

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Destaques Resultados

Net Income

Net income growth of 126% (vs. 1Q09), totaling R$ 64 million

Margins

EBITDA Margin reaches 22.1% vs. 17.5% in 1Q09 (4.6 p.p. growth)

Net Margin of 13.1% in 1Q10 (increase of 3.5 p.p vs. 1Q09)

Adjusted annualized ROE (¹) of 16.2% in the quarter

Selling and Administrative Expenses

More efficient at selling and administrative expenses

Decline in expenses as a percentage of net revenue, contracted sales and launches versus

1Q09

1Q10 Highlights

(¹)Adjusted annualized ROE excludes follow-on and includes the quarter’s cash burn.

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Net Revenue

Property sales and services

Monetary variation and interest

(-) Sales taxes

Total

Costs 1Q09 1Q10

Works+Sites 191 90,6% 308 90,4%

Financial Charges 20 9,4% 33 9,6%

Gross Profit 85 150

Financial Charges 20 33

Monetary variation and interest 9 41

Adjusted Gross Profit* 96 142

Adjusted Gross Margin* 33.4% 31.5%

Financial Highlights

* Excluding financial effects

296.4

491.0

1Q09 1Q10

Net Income (R$ million)

65.6%

1Q10% of Net Revenue

464 94.5%

41 8.4%

(14) -2.8%

491 100%

1Q09% of Net Revenue

298 100%

9 3,0%

(10) -3,4%

296 100%

85.1

150.1

1Q09 1Q10

Gross Income (R$ million) & Gross Margin (%)

29%

31%

76.4%

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EBITDA 1Q10 1Q09 Var

Net Income 65 29 126%

(+/-) Financial Expenses (Ver.), Net (9) (3) 176%

(+) Provision for tax and Social Contrib. 13 2 726%

(+) Depreciation and Amortization 5 5 -2%

(+) Interest 33 20 65%

EBITDA 107 52 106%

(+) Stock Options 2 0 -

Adjusted EBITDA 109 52 110%

Adjusted EBITDA Margin 22.1% 17.5% 4.6 p.p

Nossos Resultados em NúmerosFinancial Highlights

51.8

108.5

1Q09 1Q10

EBITDA and EBITDA Margin (%)

17.5%

22.1%

109.6%

13%

10%

28.6

64.5

1Q09 1Q10

Net Income (R$ million) & Net

Margin (%)

126%

10%

13%

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Operating expenses 1Q10 1Q09 Var.

Administrative 33 24 39%

Selling35 26 33%

Administrative/Net Revenue6.8% 8.1% -1.3 p.p.

Selling/Net Revenue 7.1% 8.8% -1.7 p.p.

Administrative/Contracted Sales (% Rossi)5.0% 8.5% -3.5 p.p.

Selling/Contracted Sales (%Rossi)5.2% 9.3% -4.0 p.p.

Administrative/Launches (% Rossi)5.8% 16.7% -10.9 p.p.

Selling/Launches (%Rossi)6.1% 18.3% -12.2 p.p.


More efficient at selling and administrative expenses

Selling and Administrative expenses

Operating expenses

We have decline in expenses as a percentage of net revenue, contracted sales and launches:

8.1% 6.8%

8.8% 7.1%

1Q09 1Q10

Administrative/Net Revenue

Selling / Net Revenue

- 1.7pp

- 1,3pp

8.5% 5.0%

9.3%

5.2%

1Q09 1Q10

Administrative /Contracted Sales (% Rossi)

Selling/ Contracted Sales (% Rossi)

- 4.0pp

- 3.5pp

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Debt Interest Rate Mar/10 Dec/09 Var.

Debt – Short Term 528.0 515.8 2%

Loans – working capital CDI + 1.5 – 2.0% 80.3 69.4 16%

Construction financing TR + 9-11% 422.1 413.4 2%

Debentures - 25.6 33.1 -23%

Debt – Long Term 768.9 694.8 11%

Loans – working capital CDI + 1.5 - 2,0% 150.4 167.1 -10%

Construction financing TR + 9-11% 308.9 213.2 45%

Debentures 106.6% do CDI 309.6 314.6 -2%

Total Debt 1,297.0 1,210.6 7%

Cash position

Short term investments CDB indexed to CDI variation 880.8 969.7

-9%

Long term investments CDB indexed to CDI variation

1.1 1.1 0%

Total cash position881.9 970.9 -9%

Net Debt 415.1 239.7 73%

Net Debt/Shareholders’ Equity 17.7% 10.5% 7.2 p.p.

Net Debt (- SFH)/ Shareholders’ Equity -13.5% -16.9% 3.5 p.p

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Nossos Resultados em NúmerosDebt

Total Debt Breakdown

Cash Burn (in R$ million)

SFH- Housing Policy Financial System

138

108 117

187 175

1Q09 2Q09 3Q09 4Q09 1Q10

18%

56%

26% Loans – working capital

Construction financing

Debentures

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NossosResultados em NúmerosRSID3 Performance

Market Value RSID3

Number of shares before offering 192.186.388

Number of new shares issued 74.250.000

Total shares after offering 266.436.388

Share price 05/12/2010 13,85

Market Value R$ 3.690.144

80,00

100,00

120,00

140,00

160,00

180,00

200,00

220,00

240,00

RSID x IBOV x IMOB

RSID3 IBOV IMOB

The company outperformed the sector and Bovespa indexes in the last 12 months

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Equipe de RIIR Team

Cássio Elias AudiCFO and Investor Relations Officer

Carolina BurgInvestor Relations [email protected]. (55 11) 3759-7516

222222

Q&A

1Q10 Results Conference Call’s Presentation

Investor Relations

Transcript of 1Q10 Results Conference Call’s Presentation