2011 03 22_conference_call_presentation_4_q10

Conference Call

4Q10/2010 Earnings4Q10/2010 Earnings

03/22/2011

SPEAKERS

• LEONARDO ROCHA

CFO and IRO

2

• MARA DIAS

IR Manager

4Q10 and 2010 highlights

� Launching of 10 developments in 4Q10, totaling 26 in 2010 vs. 10 in 2009

� Delivery of Developments: a total of 2,373 units in 13 developments,

accounting R$682.8 million

Contracted Sales in 2010 increased 75% vs. 2009

3

� Contracted Sales in 2010 increased 75% vs. 2009

� Net Revenue grew 100% in 2010 vs. 2009

� Gross Income was 156% higher than 2009 and Gross Margin had an increase

of 6.1 percentage points

� EBITDA reached R$196.2 million in 2010, growth of 94% vs. 2009

� Net Income accounted R$143.2 million in 2010, increase of 147% vs. 2009

4Q10’s Operational Results4Q10’s Operational Results

Launchings

5

620.6

1,391.5

LAUNCHINGS (R$ MM)

100% CCDI

HM CCDI

103%

of the guidance

44.6%

357.7 312.1 233.8357.7

770.936.0 192.9 301.7 193.4

620.6

393.7

505.0 535.5 551.1

4Q09 3Q10 4Q10 2009 2010

44.6%

HM

Launching Highlights - 2010

6

IN BERRINI

São Paulo – SP

Launching: feb/10

100% sold in the first month*

Total PSV: R$ 77.1 million

216 units

TERRAÇO EMPRESARIAL

JARDIM SULIN JARDIM SUL

PINOT NOIR

São Paulo – SP

Launching : mar/10

76% sold in the first month *


199 units

JARDIM SUL

São Paulo – SP

Launching : may/10



271 salas comerciais

IN JARDIM SUL

São Paulo – SP

Launching : dec/10


Total PSV: R$ 56 million

271 units

THE PARKER

São Paulo – SP

Launching : sep/10


Total PSV: R$256.3 million

246 units

* Managerial Data

Residencial dos Parques -

Parque das VeredasHM Engenharia Campinas – SP

Launching : jul/10

90% sold until now*


1,020 units

Increase of Regional share 2010/2011

7

SET CABRAL

Curitiba – PR

Launching: feb/11

41% sold in the first month*


151 Units

CONNECT WORK STATION

Campos de Goytacazes– RJ

Launching : feb/11



243 Small Offices

* Managerial Data

MID CURITIBA

Curitiba – PR

Launching : nov/10

76% sold until now*


500 Units

UP RESIDENCE

Macaé - RJ

Launching : nov/10

25% sold until now*


312 Units

Launching Highlight in 2011

8

SOUL JARDIM SUL45445

São Paulo – SP

Launching: feb/11

100% sold in its launching*


180 units

* Managerial DataFolha de SP Advertising

Own Construction

9

� Margin Increase in the developments

� Independency in the decision taking for the achievement of goals

� Valued Engineering with focus in cost reduction

� Standardization of processes

� Higher control in deadlines

� Quality assurance – Client Satisfaction

Contracted Sales

10

242.2

1,179.3

CONTRACTED SALES (R$ MM)

100% CCDI

HM CCDI

33.1% 27.3%

35.2% 20.1%

192.9 314.8

343.5

328.2

CONTRACTED SALES OF

LAUNCHINGS AND INVENTORY

Launching Sales(%)

Inventory Sales(%)

118.6 283.1 248.5

374.9

947.8

66,4

60.4 79.6

297.9

185.0

343.5 328.2

672.8

4Q09 3Q10 4Q10 2009 2010

57.9%

66.9% 72.7% 64.9% 79.9%

42.1%

33.1% 27.3%185.0

4Q09 1Q10 2Q10 3Q10 4Q10

Contracted Sales

11

São Paulo

Countryside

Paraná and

Minas Gerais

3.4%

Rio de

Janeiro

0.8%

CONTRACTED SALES 4Q10

By Market Segment

Low

Income;

21.5%

Small

Offices;

0.1%

CONTRACTED SALES 4Q10

By Market Segment

SALES FROM SEGMENTS UNDER R$ 500.0

THOUSAND PER UNIT REPRESENTED: 53.5%

SALES ORIGINED IN THE STATE OF

SÃO PAULO: 95.8%

Countryside

+ Shoreline)

26.3%

São Paulo

(Capital +

RMSP)

69.5%

Economic;

4.1%

Medium;

24.6%Mid-High;

3.1%

High and

Luxury;

46.5%

Land Bank

12

Low income segment

exclusive Land Bank

R$1.7 billion

(0.5)(0.1)

LAND BANK

(R$ BILLION)

9.1 8.5

(0.5)(0.1)

3Q10'S Land Bank 4Q10'S Launchings Viability Revaluation 4Q10'S Land Bank

Land Bank – R$8.5 billion in PSV

13

Low

Income;

30.0%

Triple A;

14.8%

LAND BANK 4Q10

By Market Segment

ES, PR and

MG

6.1%

Rio de

Janeiro

0.8%

LAND BANK 4Q10

By Location

30.0%

Economic;

20.4%Medium;

14.1%

Mid-High;

4.4%

Other;

16.2%

14.8%

São Paulo

Capital

41.7%

RMSP

31.8%

São Paulo

Countryside

+ Shoreline)

19.6%

6.1% 0.8%

Financial performance

Net Revenue (R$MM)

15

207.5

1,028.8

NET INCOME

(R$ MM)HM

CCDI

132.0210.4 215.3

383.4

821.4

35.0

62.0 58.4

130.7

167.0

272.4 273.7

514.1

4Q09 3Q10 4Q10 2009 2010

546.0 932.5 +70.8%Adjusted Net Income*

*In 2010 does not consider the sale of the Itautec piece of land in 1Q10 and in 2009

does not consider the accounting adjustments of 3Q09

Gross Income (R$MM)

16

34.453.2 59.1 81.9

235.7

8.618.4 10.7

32.1

55.6

43.0

71,6 69.8

114,0

291.3

4Q09 3Q10 4Q10 2009 2010

GROSS INCOME

(R$ MM)HM CCDI

-2.6%

25.7%26.3%

25.5%

22.2%

28.3%

4Q09 3Q10 4Q10 2009 2010

GROSS CONSOLIDATED MARGIN

4Q09 3Q10 4Q10 2009 2010

AJUSTED* (R$MM) 4Q09 3Q10 4Q10 4Q10/3Q10 4Q10/4Q09 2009 2010 2010/2009

NET REVENUE 167.0 272.4 273.7 0.5% 63.8% 546.0 932.5 70,8%

GROSS INCOME 43.0 71.6 69.8 -2.6% 62.2% 145.3 238.9 64.5%

GROSS INCOME (%) 25.7% 26,.% 25.5% -0.8 pp. -0.3 pp. 26.6% 25.6% -1.0 pp.

*In 2010 does not consider the sale of the Itautec piece of land in 1Q10 and in 2009 does not consider the accounting adjustments of 3Q09

28.5

33,3

5.5%

3.2%

0%

1%

2%

3%

4%

5%

6%

26

27

28

29

30

31

32

33

34

Sales expenses

Sales expenses/NOR

8.0 8.613.5

4.8%

3.2%

4.9%

0%

1%

2%

3%

4%

5%

6%

0

2

4

6

8

10

12

14

16

SALES EXPENSES

(R$ MM)

EXPENSES

17

2009 20104Q09 3Q10 4Q10

22.0

17.8 21.4

13.2%

6.5%7.8%

0%

2%

4%

6%

8%

10%

12%

14%

0

5

10

15

20

25

4Q09 3Q10 4Q10

G&A EXPENSES

(R$ MM)

70.9

72.9

13.8%

7.1%

0%

2%

4%

6%

8%

10%

12%

14%

16%

69,5

70

70,5

71

71,5

72

72,5

73

73,5

2009 2010

G&A expenses

G&A expenses/NOR

Net Income (R$MM)

18

100.5

17.7 27.8 51.1

122.5

1.7

8.4

(1,1)

6.9

20,7

102.2

26.1 26.8

58.0

143.2NET INCOME

(R$ MM)HM CCDI

Net Income

Impacted by the

sale in the

stake of Project

Ventura

61.2%

4Q09

9.6% 9.8%

3Q10 4Q10

(1,1)

4Q09 3Q10 4Q10 2009 2010

Margin

impacted by the

sale in the

stake of Project

Ventura

11.3%13.9%

2009 2010

CONSOLIDATED NET MARGIN

Consolidated EBITDA

19

130.8

46.2 37.9

101.2

196.2

4Q09 3Q10 4Q10 2009 2010

CONSOLIDATED EBITDA

(R$ MM)

Ebitda

Impacted by the

sale in the

stake of Project

Ventura

78.3%

4Q09

19.7% 19.1%

2009 2010

-0.6 p.p

4Q09 3Q10 4Q10 2009 2010

Margin

Impacted by the

sale in the

stake of Project

Ventura

CONSOLIDATED EBITDA MARGIN

16.9%

13.9%

3Q10 4Q10

-3.1 p.p

Revenue and Results to be Recognized (R$MM)

20

1,016.71,190.0 1,242.2

REVENUE TO BE RECOGNIZED

(R$ MM)

275.0363.4 398.4

RESULT TO BE RECOGNIZED

(R$ MM)

4Q09 3Q10 4Q10 4Q09 3Q10 4Q10

27.0%

30.5%32.1%

4Q09 3Q10 4Q10

MARGIN TO BE RECOGNIZED

Cash/ Indebtedness(R$MM)

21

127.4160.0

446.1

522.242.3%

57.0%67.1%

0,43

0,53

0,63

0,73

400

500

600

700

NET DEBT

(R$ MM)

284.6

45.7

CASH CHANGE

(R$ MM)

201.9318.7 362.2

79.8

127.4

281.7

-0,07

0,03

0,13

0,23

0,33

0

100

200

300

400

4Q09 3Q10 4Q10

SFH Net debt - SFH Net Debt/Shareholders equity

284.6

238.9

Cash in Sep/10 Cash used in 4Q10 Cash in Dec/10

291.7

0.4

292.1

58.112.6

199.5 198.7

INDEBTEDNESS TIMELINE

(R$ MM)

Debentures SFH

Indebtedness

22

Gross Debt

Dec/2010

R$761.1 million

2011 2012 2013 2014 2015

946.3

66.2 65.0 23.8 0.2 1.2

2011 2012 2013 2014 2015 2016 and after

ACCOUNTS RECEIVABLE TIMELINE

(R$ MM)Accounts

Receivable

Dec/2010

R$1,102.7 million

In dec/10 the debentures were renegotiated

and its deadline postponed to dec/15

CONTACT INFORMATION

Leonardo de Paiva Rocha

CFO and IROCFO and IRO

Mara Boaventura Dias

IR Manager

Gabriel De Gaetano

IR Analyst

[email protected]

Tel: (11) 3841-4824

2011 03 22_conference_call_presentation_4_q10

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