Apresentação da Cia Cyrela abr10 EN · 2016-08-09 · R$ 163 bn 87 18 With 40% of annual growth...
Transcript of Apresentação da Cia Cyrela abr10 EN · 2016-08-09 · R$ 163 bn 87 18 With 40% of annual growth...
Company PresentationM 2010May 2010
Saint Barth GouvernourRio de Janeiro - RJ
February 2010
Grand Lider OlympusBelo Horizonte - MG
December 2009
AndalusSão Paulo - SP
November 2008
Contents
AugeSão Paulo - SPLaunched in September 2009
Contents
Company Overview
Brazilian Real Estate Sector Overview
Company Overview
Sales Performance
Living
Outlook for the future
1Q10 Results
Appendix
NovAmérica MichiganSão Paulo - SPLaunched in November 2009
BrazilianBrazilianReal Estate
Sector Overview
A Booming Real Estate Market: Strong Fundamentals
The Brazilian real estate market is posed to benefit from a favorable environmentLow Supply of UnitsLow Supply of UnitsHigh Demand for HousingHigh Demand for Housing Low Supply of UnitsLow Supply of UnitsHigh Demand for HousingHigh Demand for Housing
3. Rising Housing Deficit(1)
Expanding the market for housing (Millions of housing Unit)1. Population and families
In millions PersonsYear
2007
2017E
Families
60.3
75 6
Population
189.1
211 2
Personsper family
3.1
2 8
5.46.7
5.6
4 N b f H M P
2017E
2030E
75.6
95.5
211.2
233.6
2.8
2.4
1991 2000 2008(2)
4. Number of Home Moves per PersonLow number of home moves as compared to other countries
BrazilBrazil 1.8x1.8x
2. Monthly income evolution
2007 2030(E)
In millions of families Growth rate(%) per year
BrazilBrazil
MexicoMexico
1.8x1.8x
4.0x4.0xup to R$ 1,000
from R$ 1,000 to R$ 8,000
31.7
27.2
29.1
60.4
more than R$ 8,000 1.4 5.9
-0.4%
3.9%
7.1%
Cyrela is uniquely positioned to take advantage of the positive Brazilian real estate environment
G-7G-7 9-10x9-10xTotal 60.3 95.5 2.0%
4
Cy e a s u que y pos t o ed to ta e ad a tage o t e pos t e a a ea estate e o e t
(1) Considers demand in excess of supply.(2) 2008: considering new methodology.Source: IBGE (Brazilian Institute of Geography and Statistics), Brazilian Central Bank, Ministry of Cities, Fundaçāo Pinheiro, FactSet, Bloomberg, Fundação Getulio Vargas and Wall Street Research.
Impact for Cyrela: The future is now
Monthly
20052005 20092009Housing Deficit (2008)Housing Deficit (2008)
Monthly Wages Housing Deficit
> R$ 4,8005.7 mm families10%
Monthly Income
Monthly Income
0.1 mm10 minimum
wages
Monthly Wages Housing Deficit
Incremental Demand (vs. 2005):+35.7 mm families
From R$1,200 to R$4,80022.4 mm families39%
> R$1,40041.4 mm families
67%
0.3 million
5 – 10
minimum
wages
< R$1 200
67%
0.7 million
3 - 5
minimum
wages~30 million
families< R$1,20029.3 mm families51%
< R$1,40020.4 mm families
33%4.5 million
< 3
minimum
wages
Minimum monthly family income to purchase a property
TR+14%10 years
familiesTR+5% (1)
30 years
Cyrela’sCyrela’s
5.6 million
y y y
Cyrela’s addressable market increased from 10% to 67%
Cyrela s Lowest
Ticket perunit available
Cyrela s Lowest
Ticket perunit available
R$ 80,000.00R$ 110,000.00R$ 80,000.00
5
Cyrela s addressable market increased from 10% to 67%of the Brazilian population in the past years
Source: IBGE (Brazilian Institute of Geography and Statistics), CBCI, GV Consult and Santander, MCM Consultores(1) Within Minha Casa Minha Vida Program
Housing Deficit (2008)
Deficit by Region Domiciles % from the TotalDeficit by Region Domiciles % from the TotalSoutheast 2,116 26,576 8.0%South 483 9,355 5.2%Middle East 248 4,504 5.5%North 788 4,398 17.9%Northeast 1,938 16,162 12.0%
Total 5,572 60,994 9.1%
6Source: MCM Consultores and Sinduscon-SP/FGV
Low-Income Segment: Renewed Growth Opportunity
Minha Casa, Minha Vida program - Potential demand growth in BrazilLow mortgage rates + incentives = high affordability levelsMonthly rent vs. mortgage payment already in tandem
Purchase Power – Impact of Minha Casa, Minha Vida ProgramPurchase Power – Impact of Minha Casa, Minha Vida Program
Before the Program Post-Program
93 291105,199
117,107
92 700 93 309 97,122109,509
121,896
57,08364,505 59,104
71,32081,382
93,291
78,80090,400 92,700 93,309
84,73597,122
3MW 4MW 5MW 6MW 7MW 8MW 9MW 10MW
419 558 698 837 977 1,116 1,256 1,395Max monthly installment
Effectiverate
(p.a.)5.12% 5.12% 5.12% 6.12% 8.47% 8.47% 8.47% 8.47%
(R$)
7Source: IBGE (Brazilian Institute of Geography and Statistics) and Company data
Minha Casa, Minha Vida program enables millions of families to purchase houses
Economic Segment : Sector’s Outlook
7 MW3 MW3 MW 4 MW4 MW 5 MW5 MW 6 MW6 MW 8 MW8 MW 9 MW9 MW 10 MW10 MW
1,3951,395 1,8601,860 2,3252,325 2,7902,790 3,7203,720 4,1854,185 4,6504,650Minimum wage (R$) 3,255
7 MW
3,255
419419 558558 698698 837837 1,1161,116 1,2561,256 1,3951,395
5.12%5.12% 5.12%5.12% 5.12%8.47% 6.17%8.47% 8.47%8.47% 8.47%8.47% 8.47%8.47%
Max Installment - 30% (R$)
Effective Rate (p.a.)
977
8.47%
977
8.47%
300300 300240 240240 240240 240240 240240 240240
90%90% 90%100% 100%100% 100%100% 100%100% 100%100% 100%100%
Term (months)
Loan to Value (%)
240
100%
240
100%
55,80050,699 74,40061,705 83,70059,104 91,30971,320 97,12293,291 109,509105,199 121,896117,107
23,0006,384 16,0002,800 9,000- 2,000- - - - - - -
Maximum financing (R$)
Maximum Incentive (R$)
84,73581,382
-
With the Program
Before the Program
78,80057,083 90,40064,505 92,70059,104 93,30971,320 97,12293,291 109,509105,199 121,896117,107Purchase Power (R$) 84,73581,382
8Source: IBGE (Brazilian Institute of Geography and Statistics) and Company data
Financing: Interest and Term Impact
Model:Monthly Installment (R$)
Model:
Unit Value: R$ 120,00010 15 20 25 30
12% 1377 1152 1057 1011 98711% 1322 1091 991 941 914
Loan Term (years)
%)
Loan-To-Value: 80%
Loan: R$ 96,000
10% 1269 1032 926 872 8429% 1216 974 864 806 7728% 1165 917 803 741 7047% 1115 863 744 679 6396% 1066 810 688 619 576te
rest
Rat
e (%
Loan: R$ 96,000
Mortgage Effort: 30%
6% 1066 810 688 619 5765% 1018 759 634 561 5154% 972 710 582 507 4583% 927 663 532 455 4052% 883 618 486 407 355
Rea
l Int
Example
Rental : R$800 per monthMinimum Wages Required (monthly salary)
Loan Term (years)Rental : R$800 per monthAnnual Yield: 8%
Equivalent to Loan Instalment with
10 15 20 25 3012% 10 8 8 7 711% 9 8 7 7 710% 9 7 7 6 6(%
)
Loan Term (years)
Real Interest Rate at 8% and 20 years term
9% 9 7 6 6 68% 8 7 6 5 57% 8 6 5 5 56% 8 6 5 4 45% 7 5 5 4 4In
tere
st R
ate
9
5% 7 5 5 4 44% 7 5 4 4 33% 7 5 4 3 32% 6 4 3 3 3
Rea
l
Brazilian Saving Accounts and Mortgage System
Uses SourcesUses
65%
53%Individual mortgages
100%
65%
Individual mortgages
g gProperties up to R$
500,000
Construction loans
SavingsAccountsDeposits
and construction
loans12%
Average loan up to R$ 500,000 Cost of
TR + 6.17% p.a.
Saving Accounts(R$ billion)
240.0
30%
Properties over R$ 500,000
Monthly averageor last 12
months average
17 %
30% Compulsory
Deposits
months average(the lowest)
206.2
5% Free Usage
10
Oct/08 Oct/09
Source: Santander
Funding Analysis (SBPE)
Scenario Oct/2009 Mortgage outstanding 2013
R$ 163 bn
Prescribed Use(R$ billion)
Actual Use(R$ billion)
R$ 163 bn
87
18
$
With 40% of annual growth in mortgage
R$ 163 bn
LCIs, LHs
19
87
145
Remaining (1)
Commited
and 10% in saving accounts, the funding will finish in 4 years
Earmarked
R$ 220 bn
57
19Commitedloans
Mortgage outstanding
resources
Scenario Mortgage t t di
Saving t t di
Mortgage outstanding Yearoutstanding outstanding g
(R$ Bn)1 60% 20% 256 20122 40% 10% 220 2013
11Source: Santander
3 40% 17% 327 20144 20% 0% 156 2015
(1) FCVS, default and multipliers.
Real Overall Payroll Growth
Southeast South Middle East Northeast NorthLess than 2 Minimun Wages 59.5% 49.2% 53.7% 53.2% 52.4%2 to 5 Minimum Wages 39 9% 39 7% 38 1% 49 4% 42 5%
Real Overall Payroll Growth 2005 to 2008
2 to 5 Minimum Wages 39.9% 39.7% 38.1% 49.4% 42.5%5 to 10 Minimum Wages 15.5% 12.7% 37.5% 33.9% 16.3%10 to 20 Minimum Wages 0.6% 2.5% 34.8% 22.6% -10.3%More then 20 Minimum Wages 7.1% -2.7% 29.8% 23.6% -5.3%Total 26 5% 23 6% 37 9% 41 0% 28 8%Total 26.5% 23.6% 37.9% 41.0% 28.8%
Southeast South Middle East Northeast NorthLess than 2 Minimun Wages 20.5% 20.5% 20.2% 21.1% 19.8%
Real Overall Payroll Growth 2009 to 2012
g % % % % %2 to 5 Minimum Wages 18.7% 18.5% 20.5% 29.7% 22.1%5 to 10 Minimum Wages 18.8% 18.8% 18.6% 29.6% 23.7%10 to 20 Minimum Wages 18.8% 19.3% 17.1% 28.2% 29.2%More then 20 Minimum Wages 19.2% 20.4% 15.5% 27.5% 29.0%gTotal 19.3% 19.4% 18.6% 25.5% 22.5%
12Source: MCM Consultores
Payroll Growth x GDP Growth
GDP Average Growth p.a.2010 to 2012
Real Income(R$)
+ 3%
0%1,370
1,420
1,470
- 3%
1,220
1,270
1,320
1,120
1,170
GDP Var ‐3% GDP Var 0% GDP Var 3%
Perspective of Real Income Growth
GDP growth p.a.-3% 0% 3% 5% 7%
2008 3.4% 3.4% 3.4% 3.4% 3.4%2009 3.4% 3.4% 3.4% 3.4% 3.4%2010 0.5% 1.3% 2.1% 2.6% 2.8%
g p
13Source: MCM Consultores
2011 -1.7% 0.3% 2.2% 3.5% 4.2%2012 -2.2% 0.1% 2.3% 3.8% 4.5%
Ventura Clube de MorarPorto Alegre- RSLaunched in November 2009
CompanyOverview
Cyrela 2010: Ready for Growth
Abundant financingMortgage Loans Funding (R$ bn)Mortgage Loans Funding (R$ bn)
60.0g
Strong demand supported by growth of real wages and favorable 10.5
25 2
40.651.0
19.019.0
gdemographics
15 different independent construction 9 3
18.330.0 32.0
3 95.5
7.0
6.9
5.2 4.6 4.8 5.0 6.910.4
16.3
25.2
41.0
pplatforms in 55 cities 1.9 1.9 1.8 2.2 3.0 4.9 9.33.3 2.7 3 2.8 3.9
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
SBPE FGTS
2010E
Source: CEF and AbecipSource: CEF and Abecip
15
Outstanding track-record with unique positioning to capture growth opportunities
Geographical Expansion
Presence in 66 cities in 16 states of Brazil, Buenos Aires in Argentina and Montevideo in Uruguay
200920092006200620052005 200920092006200620052005
AM
RR
MAPA
AP
CEAM
RR
MAPA
AP
CEAM
RR
MAPA
AP
CE
MG
GO
MT
AC
ROBA
PI
PA
TO
RN
PE
ALSE
MS ES
DF
PB
MG
GO
MT
AC
ROBA
PI
PA
TO
RN
PE
ALSE
MS ES
DF
PB
MG
GO
MT
AC
ROBA
PI
PA
TO
RN
PE
ALSE
MS ES
DF
PB
RS
SC
PR
SP RJ
BuenosAires
RS
SC
PR
SP RJ
RS
SC
PR
SP RJ
+ +
In a short period of time Cyrela has achieved tremendous success
% ofBrazilian
GDP Covered
% ofBrazilian
GDP Covered 90.5%(1)80.5% 47.9%
16
In a short period of time, Cyrela has achieved tremendous success in its geographical growth strategy
(1) Considers 2007 data, most recent.Source: Company and IBGE.
Nationwide Operations
Present in 66 cities in 16 statesLivingLivingLi iLi iC lC l
Present in 47 cities in 12 statesLivingLivingLivingLivingCyrelaCyrela
RR AP
ALPEPB
RNCEMAPAAM
ACTO
PI
SE
GODF
MG
BARO
MT
TO SE
PR
SP
MGES
RJMS
RS
SC
17
Prospects of strong growth with unique track record
Increase in sales speed in most relevant income segments: pre-crisis levels Living benefits from Housing Program “Minha Casa Minha Vida”Living benefits from Housing Program Minha Casa, Minha VidaLowest interest rate in 50 years will be positive for the activity in the mid-high segmentsLow execution risk
► 15 construction platforms distributed throughout Brazil► Constructed area grew from 232 thousand sq.m in 2005 to 1.7 mm sq.m in 2009► Conservative cash-flow managementg► 175 construction sites ongoing in Dec/2009
Constructed Area per YearConstructed Area per Year Units DeliveredUnits DeliveredPrivate area in thousands of sq.m.
ForecastedHistorical
ForecastedHistorical (until 2009) 17,000 – 21,000
1,6552,186 7,661
232 372594
1,002
1,6557,510
2,2113,178
18Source: Company data
232
2005 2006 2007 2008 2009 2010e
2,211
2007 2008 2009 2010e
Cyrela Brazil Realty
2005 20072006 2008 2009
Launches
Pre-sales
R$ 1.2 bn
R$ 1.0 bn
R$ 5.4 bn
R$ 4.4 bn
R$ 2.9 bn
R$ 1.9 bn
R$ 5.5 bn
R$ 5.1 bn
R$ 5.7 bn
R$ 5.2 bn
Landbank
Low income units launched
3.0 mm sq.m.
0
8.8 mm sq.m.
6.7 thd
4.9 mm sq.m.
720
11.2 mm sq.m.
11.1 thd
12.6 mm sq.m.
16.1 thd
EBITDA Margin*Gross Margin*
27.1%
48.5%
22.9%
41.2%
22.3%
42.2%
16.5%
38.0%
22.3%
34.5%
# Homebuilders listed
Net Margin*
2
23.2%
21
24.7%
4
21.7%
20 18
9.8% 17.8%
Market Cap Cyrela**Market Cap of the Industry
R$ 2.4 bn
R$ 6.0 bn
R$ 8.6 bn
R$ 48.1 bn
R$ 4.5 bn
R$ 10.0 bn
R$ 3.3 bn
R$ 13.4 bn
R$ 10.4 bn
R$ 51.6 bn
946EmployeesNumber of cities
202
3
529
47
327
8
514
55 66
19
1,265
*Adjusted for IPO expenses and according to BR GAAP before Law 11,638 until 2007.
Seller Brokers & Team 100 743200 637
** On December 31, of each year.
Art de VivreSão Paulo, SPLaunched in November 2009
S lSalesPerformancePerformance
Strong Sales PerformanceLaunches and Sales from 2006 to 2009
Launches (R$ bn)Launches (R$ bn) Sales (R$ bn)Sales (R$ bn)Launches (R$ bn)Launches (R$ bn) Sales (R$ bn)Sales (R$ bn)
5 4 4.8 5 726.4 29.2 27.6
5.222.1
29.6
6.221.0 24.4 21.9
2.9
5.4 5.7
9.1
4.7 10.517.5
24.41.9
4.44.6
6.6
14.9
2006 2007 2008 2009
Market Cyrela Launches
2006 2007 2008 2009
Market Cyrela Sales
Sales over Supply (VSO) from 4Q08 to 4Q09
32%38%
21%14% 12%
21%26%
15% 13%
22%
21Source: Jornal Valor Econômico and Cyrela
4Q08 1Q09 2Q09 3Q09 4Q09
Market VSO Cyrela's VSO
Sales Force
In-house Sales Force RR AP
1,637brokers (March 2009)Focused on launches and inventory PB
RNCEMAPAAM
Online and traditional brokers
E t l S l F DFBA
ALPE
PB
ACRO
MT
TO
PI
SE
External Sales ForceLopesBR B k SP
GODF
MGES
RJMS
BR BrokersRegional brokerage houses: SC
PR
SP RJ
► Elite (SP)
► Eduardo Feitosa (PE)
► Morar Vendas (ES)
► Unire (GO)
RS
External Sales Force( )
► Francisco Rocha (MA)
► Achaval (ARG)
► Lider (MG)
► Pereira Feitosa (MA)
External Sales Force
In-house and External Sales Force
22
Parque dos SonhosSão Paulo, SPLaunched in 2007
Living
Paving the way to grow fast with a lean structure
1. Solid Track Record of Growth
2. Know-How of the Segment
7. Nationwide presence
3. Sufficient 6. Management Teamith th 15 Supply of Raw
Materials / Services and
with more than 15 years experience in
the low income segment Personnel segment
4. Landbank Already Available
5. Secured Financing AvailableFinancing
24
Living’s Historical Figures
Over 30,000 units launched from December/2006 to December/2009
Units launchedUnits launched Units soldUnits sold
16,062 14,913
6 666
10,459
,
8,934
720
6,666
2006 2007 2008 2009
390 5,077
2006 2007 2008 2009
Launches (R$ million)(1)Launches (R$ million)(1) Sales (R$ million)(1)Sales (R$ million)(1)
1,499
1,807
1 247
1,726
85
884
44 641
1,247
25(1) Considering 100% stake
2006 2007 2008 2009 2006 2007 2008 2009
Organizational Chart
Antonio Guedes Cyrela Corporate CenterHead Living IR and Capital Markets, Supply Chain, Land
Committee and Strategic Decision
EngineeringLand Development FinancialSales
Regional Offices
São Paulo Rio de Janeiro
Regional Offices
North/Northeast
Total of 140 employees
BH/ ES/ Mid-West South
26
Living Environment
Customer Service Platform EngineeringMonitoring of the
SalesTermination of
Centralizes all phases of the process, from the time a client buys a property until he/she pays the last installment.
gconstruction worksTechnical visitsCondominium meetingsTechnical assistance
agreementsSales terms and conditionsSales officePrice table
Reduces risks and consolidates the relationship with clients
Increases client assistance capabilities
Customer Service Platform
Participation in promotional campaigns
LegalFinancialIncreases client assistance capabilities
Financing Availability
Termination of agreementsPurchase agreements
Credit AnalysisFinancial productsCollectionPrice tableOn lending schedule
Strengthened relationship with the Housing Financing System (SFH) and Caixa Econômica Federal (CEF)
g
CEF correspondents serve all Brazilian regions
B d il bilit f f d d th
DevelopmentMarketing
► Communication► Research
Broad availability of funds under the Minha Casa, Minha Vida Program
► Brochures► Promotional campaigns► Campaigns
Indication/Benefits/Performance
27
Short Cycle Process
Launch Go-ahead DeliveryFinancing
0 – 6 monthsPre-Launching
12M 16M Up to 20M8M4M0M
Construction
Living Corporate EnvironmentEngineeringProduct
Servicing the client from purchase onwards, through a single communication channel: the Customer Servicing Platform
Use of “Lean Construction” ConceptAssembly lineReduction of waste and costs
Simple, standard and easily executed projects focused on low income segment. Standardization of: g
In-house and trained sales forceFinancing availability through CaixaEconômica Federal
Enhancement of construction methods for popular housingIncreased productivity and quality during works execution
► Land acquisition► Real Estate Development► Sales g
Increased costumer satisfactionPrice defined by product (not by sq.m.)
► Construction► Customer Relationship
Prices from R$90,000 to R$ 200 000
Source: Company
15% cost reduction expected200,000Units from 45sq.m. to 75sq.m
28
Source: Company
Product Lines
Prices up to R$ 90,000 Prices from R$ 90,000 to R$ 130,000p , ,
Partners: Líber, Mérito and Avanti VidaUnits of 45 sq.m. to 62 sq.m.T+7 and T+16
Partners : Vitória, Dez and Parque dos SonhosUnits of 45 sq.m. to 62 sq.m.T+3 to T+9 T 7 and T 16
1 parking spaceElegible MCMV – 3 to 10 MW100% financed
T+3 to T+9Parking space optionalEligible MCMV – 3 to 6 MW 100% financed
29Eco Parque - PALiber Vila Matilde - SPParque dos Sonhos - SP
Reserva Parque - BA
Product Lines
Prices from R$ 130,000 to R$ 200,000 Prices from R$ 100,000 to R$ 200,000
Partners: Fatto, Garden and Avanti ClubeUnits of 48 sq.m. to 75 sq.m.T+16 (most verticalized project)
Partners: Fatto, Garden and Avanti ClubeUnits of 90 sq.m. to 130 sq.m.Ground or Two story houses
1 to 2 parking spacesEligible for SFH financing80% financedComplete leisure
1 a 2 parking spacesEligible for MCMV and SFH financing80% to 100% financedComplete leisureComplete leisure Complete leisure
30
30Alcance Niterói - RJ Garden Jundiaí - SPBrisas Life - MA Casas do Bosque - BA
Living / CEF Flow
Definition of the Financial Product Setup of the
ProcessSending to Regional
OfficeProcess Office
North,
Northeast and RJ
Other
RegionsNortheast and RJ Regions
Support of the Living Financial Products Area
RJ SP(SP)
Sending to Corporate RJ
Sending to Corporate SPSupport of the
Living Financial
Responsible CEF
gProducts Area
(RJ)
31
Responsible CEF
Regional Superintendency
CEF Project Flow
CAIXA Deadline: 15 days CAIXA Deadline: 60 days CAIXA Deadline: 90 days
Evaluation Contracting Company (PJ) Contracting Company (PJ) and Individual (PF)
Legal
Note: deadlines are conservative, as they tend to be shortened
Pre-Analysis(Evaluation) Engineering
RegionalCommittee
ContractingPJ
ContractingRisk
gPF
32
“Minha Casa, Minha Vida” Program
Caixa Econômica Federal Figures
3 to 10 M WContracted Units
CEF Living % Living 3 to 10 M.W.7.3% of market
share in approvals
CEF Living % Living0-3 Minimum Wages 203,997 2,560 1.3%3-10 Minimum Wages 204,667 15,040 7.3%
(PJ + PF)Total 408.664 17,600 4.3%
Living submitted units
Evaluation Company contracting Company (PJ) andClient (PF) contracting( ) g
Contracted (PJ)
14,900 TotalApproved for sale To be contractedSubmitted
38,264=Transferred
Contracted (PF)2 700
10,792 5,872+ +4,000
33Note.: Contracts of Caixa until April 13, 2010Living updated until May 13, 2010
2,700
Onlending Structure
ONLENDING COORDINATOR
ONLENDING COMMITTEESONLENDING COMMITTEES(PER PROJECT)COORDINATOR (PER PROJECT)
- Quarterly Portfolio SummaryRegistries: INCOME/EMPLOYMENT/FAMILY
Situation in SPC (Credit Protection Service)
ONLENDING SPECIALIST 1
Situation in SPC (Credit Protection Service)
- Discussion of Strategies resulting fromthe Analysis of the Quarterly Summary
Risk Mitigation ProvisionsONLENDING SPECIALIST 2
ONLENDING COMPANY 2
- Risk Mitigation Provisionsencourage rescission in some cases
Follow-up of project delivery timetable to “kick off” onlending processes
ONLENDING COMPANY 1
ONLENDING COMPANY 4
ONLENDING COMPANY 3
to kick off onlending processes
Monitoring of documentation needed for onlending (Documentation for Inhabitation Permit,
Inhabitation Permit and CND)
CO.5
04/10 07/10 10/10
* CO.
4CO.
6CO.
203/10 06/10 09/10
CO.1
CO.3
CO.11
03/10 04/10 17/10* CO.10
CO.12
CO.8
02/10 05/10 06/10
CO.7
CO.9
)ONLENDING COMPANIESONLENDING COMPANIES
‐ Scope of Work
Semi‐Annual Monitoring
Quarterly Portfolio Summary CURRENTLYCURRENTLYQuarterly Portfolio Summary
Preparation of Onlending Folders
Effective Onlending to Customers
For Each Onlending Compan
30 employees20 outsourced consultants(with 8 employees each)
CURRENTLYCURRENTLY
34
‐ For Each Onlending Company
Maximum of 3,000 customers
* Projects with onlending Dates Spaced Quarterly
The Business Financial Cycle
Financial Product Associative ClientFinancial Product AssociativeAmortization
Project Sales Construction Works InhabitationPermit
Beginningof Sales
End ofSales
Ti
Deliveryof Unit
End ofConstruction
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
ONLENDING BEGINS
Time(months) ...up to 360 months
ClientFunds Down payment Interest Interest + Amortization
Creditor Developer Bank
35
Economic Construction Concept
‘’Lean Construction’’ Concept Living’s Concept
Simple standardized projects, easily
executed, and focused on process
Market research Partners + R&D Center
management
Synergy gains from the integration of Product Technology
product development, technology and
production process Production process
Architecture
Better relationship between designers,
manufactures and construction
Industrial management
Integrated process management
This new concept allowed Living to be
competitive in the lower segments of
management
g
the pyramid
36
CEO Salvador ShoppingSalvador - BALaunched in September 2009
Outlook for theF tFuture:Cyrela’sCyrela s
Revised Plan
Excellent Track Record of Growth
Launches(R$ million)
Pre - Sales Contracts(R$ million)
5,393 5,453 5,679
4,392 5,144 5,241
4 465
2,917
4 0881,915
700 1.004 1.924
3.428 3.784 4.465
972 1,211
713 755 1.369
2.815 3.458
4.088 949 1,023
2004 2005 2006 2007 2008 2009
Partners Cyrela
2004 2005 2006 2007 2008 2009
Partners Cyrela
38
Consistent track record of growth in Launches and Pre-sales Contracts
Guidance 2010 - 2012Xxxx
Launches and Sales for 2010 - 2012
Guidance 2010 2011 2012
Launches (R$ billion)
6.9 to 7.7 8.3 to 9.1 10.5 to 11.5
Sales 6 2 to 6 9 7 6 to 8 4 9 7 to 10 7(R$ billion)
6.2 to 6.9 7.6 to 8.4 9.7 to 10.7
% Cyrela 73% a 77% > 75% > 75%
Margins over net revenuefor 2010 - 2012
Living’s stakefor 2010 - 2012
Gross margin 33% to 37%2010 f 35% t 40%
% Living
EBITDA margin 20% to 24%Net margin 14% to 16%
2010 from 35% to 40%
2011 from 40% to 45%
39
2012 from 45% to 50%
Landbank Analysis – Acquisition of LandCyrela’s Landbank Maturity to
Launch (R$ million)Cyrela’s Landbank Maturity to
Launch (R$ million)Living’s Landbank Maturity
to Launch (100% stake - R$ million)1Living’s Landbank Maturity
to Launch (100% stake - R$ million)1
5 750
16.900
16,90011,500
2,900 3,274
4,085
5,409
5,750
4 859
9,100
9,620
1,8072,400
1,807500
800
821 341
Mid-High Income Landbank Maturityt L h (100% t k R$ illi )1
Mid-High Income Landbank Maturityt L h (100% t k R$ illi )1
809
5,678
7,7004,859
2009 2010E 2011E 2012E Post 2012
to Launch (100% stake - R$ million)1to Launch (100% stake - R$ million)1
6,891
5,678
4,800
16,100
1 5855,005
4,211
5,750
5,678 4,241
1,8803,871
4,491
3093,8711,585
3,420
Existing Landbank Incremental Purchases
2009 2010E 2011E 2012E Post 2012
3,871
2009 2010E 2011E 2012E Post 2012
1,539
40(1) Potential PSV, 100%
Cyrela’s Investment Plan
Sources (R$ million)Sources (R$ million)Uses (R$ million)Uses (R$ million)
1,000850700
1,000
2,500
900
2,5001,000
2,5001,150
2,500
900
600
350350
600
Working capital Cost ofLandbank (Low
Cost ofLandbank (Mid-
Total
300
Sale ofstake in
BondOffering
Follow-onOffering
OtherFinancing
Total
300600
41
Landbank (LowIncome)
Landbank (MidHigh Income)
stake inAgra
Offering Offering Financing
Landbank Analysis – as of December 31, 2009
LIVING Region breakdown(1)LIVING Region breakdown(1)CYRELA Region breakdown(1) CYRELA Region breakdown(1)
São Paulo (Metropolitan)
9%South +
SoutheastSão Paulo
(M t lit )
South + Southeast
9% 9%Southeast 22%
(Metropolitan) 18%
Northeast 18%
São Paulo
Northeast 9%
São Paulo(Other Cities)
11%São Paulo
(Other Cities)35%North
1%
North 5%
Rio de Janeiro 24%
Rio de Janeiro 39%
42
Landbank to be acquired in all geographical regions(1) PSV, 100%
Mais São CristovãoRio de Janeiro - RJLaunched in November 2009
1Q10 Results
Living’s Launches
Launches(R$ million)
Region breakdown(R$ million)
SP20%87 2
323.7
RJ10%
North9%
87.2
132 8
South21%87 9
236.544.9 132.8
Northeast40%
87.9
1Q09 1Q10Living Partners
Living: 54.3% of PSV launched in 1Q10
Living Partners
9 projects launched in 1Q10
2.4 thd units of which 918 units within “MCMV” program
44
Average unit price of R$ 133.5 thd/unit R$ 142.7 thd in 1Q09
Living’s Sales
Sales(R$ illi )
Region breakdown(R$ million)
SP30%
104 6
411.5
RJ11%Southeast
others9%
104.6
South19%
North7%
9%
79.2
306.942.9
122.1
19%
Northeast25%
1Q09 1Q10Living Partners
Living: 38.6% of PSV sold in 1Q10
3,152 units sold in 1Q10
45
Average unit price of R$ 130.6 thd R$ 154.0 thd in 1Q09
Sales Speed Living
Average Sales Speed of LaunchesAverage Sales Speed of Launches
29% 41% 1% 71%1Q09
41%
29%
37%
41%
7%
1%
2% 87%
71%
2Q09
1Q09
74%
61%
16%
24% 8%
90%
92%
4Q09
3Q09
51%1Q10
In 3 months In 6 months In 9 months In 12 months In 15 months
46
Living’s Landbank
4 plots of land acquired with a potential PSV of R$ 682.3 million
Potential PSV: R$ 7 5 billion (100%) and R$ 6 1 billion (% Living)Potential PSV: R$ 7.5 billion (100%) and R$ 6.1 billion (% Living)
89 plots of land of which 68% paid through swaps
U it’ i R$ 120 6 thdUnit’s average price - R$ 120.6 thd
Landbank by unit price Region breakdown
0 000 São Paulo
22 358
22,465 61,782
50,000
60,000
70,000 São Paulo49%
16,959
22,358
20,000
30,000
40,000
Northeast9%
-
10,000
Up toR$ 100 thd
From R$ 100 thd t
From R$ 130 thd t
Total
RJ18%
Southeast others
6%
South18%
47
R$ 100 thd R$ 100 thd to R$ 130 thd
R$ 130 thd to R$ 200 thd
6%
Launches Cyrela + Living
15 projects launched in 1Q10
Average price: R$ 190 thd/unit R$ 243.9 thd/unit in 1Q09
Price/ sq.m. : R$ 2.8 thd/sq.m. R$ 3.6 thd/sq.m. in 1Q09
Region breakdownLaunches
LIVING: 54.3% of PSV launched in 1Q10
Region breakdown(R$ million)
SPN th SP11%
RJ22%
North5%
137.8114.7
554.0 596.3
22%
Northeast36%416 1 481.6
137.8
South26%
416.1
1Q09 1Q10
48
26%1Q09 1Q10Cyrela Partners
Sales Cyrela + Living
4.7 thd units sold in the first quarter
73.3% of sales in 1Q10 are related to inventories
Inventories in March/10: R$ 3.2 bn (100%) and R$ 2.4 bn (%CBR) 9 months of sales*
Sales (R$ illi ) Region breakdown(R$ million) Region breakdown
SP36%
1,065.836%
196.7
510 4RJ
17%Northeast25%
350 9
869.0159.5 510.4
South14%
Southeast others
7%
350.9
1Q09 1Q10
Cyrela Partners
49
Cyrela Partners
* In monthly average sales in Jan – Mar/2010 (R$ 355 million – 100%)
Inventory Control
1Q10 was one of the strongest quarters of sales of inventories
66.8%62 4%
73.3%
60.7%
52.4%
61.5% 62.4%
37.8%
2,268.5
37.6%
%
36.5%
728.9 616 5
828.9
1 052 0
1,940.9
1 052 5
1,630.9
1 065 8
1,212.0 1,014.4 1,439.7 702.6 638.4
296.5 296 4524.0
616.5
781.5
1,052.0 1,052.5
566.1 481.9
839.8 1,065.8
349.4 414.1 269.6 185.5 315.8 284.2 296.4
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
S l f L h S l f I t % S l f I t
50
Sales of Launches Sales of Inventory % Sales of Inventory
Sales Speed: Cyrela
Average Sales Speed
40% 26% 11% 6% 1% 84%1Q09
49%
53%
19%
26%
8%
5% 3%
77%
88%
3Q09
2Q09
49%
49%
11%
19% 8%
60%
77%
4Q09
3Q09
44%1Q10
In 3 months In 6 months In 9 months In 12 months In 15 months
51
Sales Speed Cyrela + Living
Sales over Supply (VSO)65.1%
32.1%37.6%
25 4%21.9% 25.4%
A S l S d f L h
2Q09 3Q09 4Q09 1Q10 12M
Average Sales Speed of Launches
39% 31% 9% 5%1% 85%1Q09
52%
49%
20%
30%
8%
6%
81%
88%
3Q09
2Q09 3%
48%
59% 13% 72%
1Q10
4Q09
52In 3 months In 6 months In 9 months In 12 months In 15 months
LandbankRegion breakdown
São Paulo30%
R$ 39.1 billion of PSV (R$ 32.5 billion %CBR)
10 plots of land acquired with potential PSV of R$ 1 3 billion
N th
South+Arg+
Urug7%
10 plots of land acquired with potential PSV of R$ 1.3 billion
R$ 5.2 billion acquired after the Follow - On
RJ37%Northeast
19%
North4%
73 % paid through swaps
202 projects with 150 thousand units
26% up to R$ 130 thd 74% up to R$ 500 thdSoutheast
others2%
19%
10 907 7 330 970 150,161 160,000
42,227 10,951
10,907 7,330
100,000
120,000
140,000
22,148
38,669
40 000
60,000
80,000
100,000
16,959
-
20,000
40,000
Up to From From From From From From Above R$ Total
53
pR$ 100 thd R$ 100 thd
to R$ 130 thd
R$ 130 thd to
R$ 200 thd
R$ 200 thd to
R$ 350 thd
R$ 350 thd to
R$ 500 thd
R$ 500 thd to
R$ 600 thd
R$ 600 thd to
R$ 1,200 thd
1,200 thd
Units Delivered in 2010
3,407 thousand units delivered in 19 projects
PSV of delivered units R$ 1.1 billion
Living: 7 delivered projects totaling 1,680 unitsg p j g
PSV of Living’s delivered units R$ 208.8 million
Delivery forecast 17 to 21 thousand units
Today : 149 construction sites, of which 63 are LivingToday : 149 construction sites, of which 63 are Living
54
Autêntico – SPDelivered in Jan/10
Mérito Santo André (Living) – SPDelivered in Mar/10
Saint Barth – RJDelivered in Mar/10
Camarotte – SPDeliivered in Jan/10
Financial Results
1 132 4
Net Revenue(R$ million)
671 5
1,132.4 +68.7%
671.5
1Q09 1Q10Gross Income Backlog
37.5% 34.8%
(R$ million)g
(R$ million)
34.8% 34.4% 34.3%
252.1
394.6 +56.5%4,937.2 5,033.4 5,041.2
55
1Q09 1Q10Gross Profit Gross Margin
2008 2009 1Q10Revenue to be Recog. Gross Mg. To be Recog.
Financial Results
15 0% 15 4%
EBITDA(R$ million)
Net Profit(R$ million)
174.2
15.0% 15.4%
+47.9% +73.4%223.7
22.5%19.8%
100.5 151.2
1Q09 1Q101Q09 1Q10
Net Profit Net Margin
Ratio Expenses to Sales Ratio Expenses to Net RevenueEBITDA EBITDA Margin
4.3%20092009 5.6%
10.3%8.8% 7.8% 7 1% 7.6% 8.3%
6.3% 5.9%4.0%
9.0%
6.1%4.1% 2.7%
7.0%
6.0%7.1% 7.6%
6.8%5.8%
5.0% 5.1%6.6%
56
%
1Q09 2Q09 3Q09 4Q09 1Q10
Selling Expenses Gen. & Admin. Expenses
1Q09 2Q09 3Q09 4Q09 1Q10
Selling Expenses Gen. & Admin. Expenses
Accounts Receivable
Accounts receivable performance(R$ million)
Receivable’s remuneration(R$ million)(R$ million) (R$ million)
9,696 10,395
1,440 10,395
Finished units: IGP-M + 12%Under Construction: INCC
7,681
2008 2009 1Q10
8,955
3,310
Constructed unitsReceivables Schedule
Receivables
Units under constructionConstructed units
Construction cost to incur - sold
(R$ million)
3,665
1,790 1,640 897 459 445 402 363 735
57
2010 2011 2012 2013 2014 2015 2016 2017 Until 2028
Liquidity
D btDebt(R$ million)
BalanceMarch 31, 2010
Maturity Cost
SFH 1 379 7 2009 t 2014 TR + 10 4%SFH 1,379.7 2009 to 2014 TR + ~ 10.4% p.a.
Debentures 1st issuance 500.0 2012 ,2013,2014 CDI + 0.48% p.a.
Debentures 2nd issuance 61 9 2018 CDI + 0 65% p aDebentures 2 issuance 61.9 2018 CDI + 0.65% p.a.
Debentures 3rd issuance 350.0 2014 CDI + 0.81% p.a.
Bradesco (stand-by) and others 204 3 Nov/2010, Nov/2011, CDI + 0 81% p aBradesco (stand-by) and others 204.3 Nov/2012, Nov/2013 CDI + 0.81% p.a.
Loans (foreign currency) – US$ 50 million 53.4 Sep/2011 and Sep/2012 Libor + 3.5% and 4.3% p.a.
Total Debt withSFH 2 549 3Total Debt withSFH 2,549.3
Total Debt without SFH 1,169.6
Cash and Cash Equivalents (1,286.1)
Net Debt withSFH
LTM EBITDA= 1.3 time
Cash and Cash Equivalents (1,286.1)
Net Debt withSFH 1,263.2
Net Debt without SFH (116.5)
LTM EBITDA
Net CASH without SFH
58
Net CASH without SFH
LTM EBITDA= 0.1 time
Pre-Sales to be Recognized
2007R$ million 2008 2009 1Q09
1,597.1
4 515 2
Sales to be recognized at the beginning of the period
Net sales recorded in the period
4,081.6
3 974 4
5,124.2
4 324 6
5,224.0
1 173 34,515.2
(2,030.3)
Net sales recorded in the period
Revenues recognized in the period
3,974.4
(2,930.8)
4,324.6
(4,192.3)
1,173.3
(1,158.6)
3 933 0Net Sales to be recognized at the end of the period 4 937 2 5 033 4
(149.0)Taxes (3.65%) (187.0) (190.7)
5 041 2
(191.0)
(2,604.7)
3,933.0Net Sales to be recognized at the end of the period
Cost of units sold to be recognized (3,217.2)
4,937.2
(3,300.8)
5,033.4
(3,309.6)
5,041.2
(26.3)Selling Expenses (37.6) (14.7) (16.3)
1,327.9
33.8%
Gross profit to be recognized
Percentage of gross profit
1,719.9
34.8%
1,732.6
34.4%
1,731.6
34.3%
59
Pleno ResidencialBelém - PALaunched in March 2010
Appendixpp
Cyrela’s History
2009•Cyrela Follow II •3rd debenture issue in the amount of R$ 350.0 million•Merger of Goldsztein Cyrela Participações into Cyrela
2008 •Second public debenture issue in the amount of R$ 499.5 million
Merger of Goldsztein Cyrela Participações into Cyrela
2007
2006 •Cyrela Follow I
•Cyrela first debenture issue, in the amount of R$ 500.0 million•Spin-off of Cyrela Commercial Properties (CCP)
2006
2005•Merger of Brazil Realty into Cyrela Vancouver and creation of Cyrela Brazil Realty Empreendimentos e Participações S.A (CBR)
•Cyrela Follow I
2004
•Cyrela’s IPO
•Cyrela subsidiaries are grouped under Cyrela Vancouver
1996
2000
•Brazil Realty’s IPO
•Beginning of the partnership of Cyrela with RJZ Engenharia, in Rio de Janeiro
1981
1994
C l C t t i f d d d S ll ( l t ) t d
•Brazil Realty, a joint Venture with Argentine company IRSA, is founded
61
1981
1962 •Cyrela is founded in São Paulo, SP
•Cyrela Construtora is founded and Seller (own sales team) are created
Cyrela Brazil Realty Group
Development and Construction Joint Ventures and Partnerships
Sales ServicesSales Services
62
2016 Olympic Games
R$ 14bn of PSV in Rio de Janeiro of which almostBarra da Tijuca RJ
Strategically positioned landbank in Rio de Janeiro
R$ 14bn of PSV in Rio de Janeiro, of which almost
90% is located in Barra da Tijuca
Barra da Tijuca was chosen as the location for the new
Barra da Tijuca - RJ
C Barra da Tijuca was chosen as the location for the new
Olympic Games facilities, such as the Olympic Training
Center and the Olympic Village. Such facilities and their
Cidade Jardim Centro
Metropolitano
benefiting to the region will endure for long after the
Olympic GamesGleba F
Future facilities of
Until 2016, more than R$100 billion of investments
expected for the projectPeníns la
Olympic Games 2016
► The civil construction sector is expected to account for approximately 10% of the investments
$
Península
► The local government announced R$ 11.4 bninvestment in transportation infrastructure to facilitate access to the region
63Source: Rio 2016 official Olympic project
Cyrela is the best positioned real estate company to profit from the 2016 Olympic Games
Typical Cyrela Project
Launch Go-ahead Delivery Completionof payments
Construction6M - 18MLicensing
Pre sales 0 50 70 90 100 10080 95
Up to 100M18M 24M 30M 36M12M6M0M
Licensing
Pre-sales 0 50 70 90 100 10080 95
% Budget Costs - - 0% 40% 100% 100%20% 65%
Revenues - - 0 36 100 10016 62
Assumptions for this example:
Collections(cumulative) - 7 14 28 50 10020 34
Potential sales: R$ 100 million
Exchange agreements (land): R$ 20 million (recognized as revenues and COGS)
64
Exchange agreements (land): R$ 20 million (recognized as revenues and COGS)
Does not include financial revenues deriving from customer financing
Typical Living Project
Shorter operating cycle: 24 months
Launch Go-ahead Delivery Financing
0 - 6 monthsPre-Launching
Construction
Contracted Sales(cumulative)
- 70 80 10090 100
18M 24M Up to 28M12M6M0M
%Construction Cost - - 23% 100%55% 100%
Revenues(cumulative) - - 19 10049 100
Collections - 6 11 2013 100
Assumptions for this example:Potential Sales: R$ 100 million
(cumulative) - 6 11 2013 100
65
Exchange agreements: 100% (R$10 mm), 80% of unit price financed by commercial banksClient is fully financed by the banks after keys handover
Contact IR
Cyrela Brazil Realty S.A. Empreendimentos e ParticipaçõesAv Presidente Juscelino Kubitschek 1455 3rd floorAv. Presidente Juscelino Kubitschek, 1455, 3rd floorSão Paulo - SP – BrasilCEP 04543-011
Investor RelationsPhone: (55 11) 4502-3153 [email protected]
www.cyrela.com.br/ir
Statements contained in this press release may contain information which is forward-looking and reflects management'scurrent view and estimates of future economic circumstances, industry conditions, company performance and the financialresults of Cyrela Brazil Realty. These are just projections and, as such, exclusively based on management's expectationsof Cyrela Brazil Realty regarding future business and continuous access to capital to finance the Company's businessplan. Such future considerations rely substantially on changes in market conditions, government rules, competitor's
66
plan. Such future considerations rely substantially on changes in market conditions, government rules, competitor spressure, segment performance and the Brazilian economy, among other factors, in addition to the risks presented on thereleased documents filed by Cyrela Brazil Realty, and therefore can be modified without prior notice.