Cyrela - Corporate Presentation - March 2009

1

NOVAMERICASão Paulo, SP

Launched in March 2009

Company PresentationMarch 2009

2

Company Highlights

Financial Information

Appendix

Agenda

Escritório SantanaSão Paulo, SPLaunched in March 2009

2009 Update

3

1Q09 Update

Barra Prime OfficeRio de Janeiro, RJLaunched in November 2008

4

Continuous improvement in the real estate market

Good market response to launchesNovAmérica: R$ 278 million PSV - 69% sold to dateEscritórios Santana: 78% soldMérito Vila Curuçá: 85% soldApril/2009: L’Acqua – Natal/RN:1st launch in RN - 46% soldApril/2009: Ventura Ecoville – Curitiba/PR: 65% sold

Government Housing Program “Minha Casa, Minha Vida”News on LivingLaunches in the near futureIncreased participation of economic projects in Cyrela’s portfolio

Increased limits for SFH and FGTS eligibility: increase in debt transfers and sales

Aquisition of Goldsztein3rd JV partner acquiredWork model to be implemented similar to that of RJZ Cyrela, in RJCurrent Goldsztein Officers will remain in charge of the Southern Region UnitIncrease of Cyrela’s participation in the 100% figuresDue diligenceTo be concluded until June, 2009

Current Panorama

5

News on Living

Southern region

Minas Gerais

Bahia

Northern region

Pernambuco

Espírito Santo

Ceará

Rio de Janeiro

Rio Grande do Norte

Living’s Nationwide Activity

São Paulo

Independent ActivityNew HeadquartersSeparate Accounting100% CyrelaIndependent activity in all steps of the business:

Land acquisitionReal Estate DevelopmentSalesConstructionCustomer Relationship

Organic operation and in partnership with JVsCFC correspondent servicing all Brazilian

regions

6

Construction

Living Construtora

Use of “Lean Construction” ConceptSimple projects, easily executed, with repetitions, standardized and focused on managementAssembly lineReduction of wastes and costsIncreased productivity during works executionIncreased construction qualityIncreased flexibility of requirementsFlexibility of works execution scheduleIncreased costumer satisfaction

Enhancement of construction methods for popular housingProduct blueprint definition developed together with supplies

Land bought to fit the product

Price defined by product (not by sq.m.)

In-house and trained labor

15% cost reduction expected

7

Launches in the near future

Launches scheduled for the next months show more than 2 thousand units eligible to the Government Housing Program “Minha Casa, Minha Vida”

40%32,246 191 169 Curitiba – PRVentura Ecoville

71%31,646 236130 São Paulo – SPFatto Jardim Botânico

Rio de Janeiro – RJ

Ferraz de Vasconcelos – SP

São Paulo – SP

Guarulhos – SP

São Paulo – SP

São Paulo – SP

Porto Alegre – RS

Porto Alegre – RS

Campinas – SP

Region

3,060

380

200

400

277

396

252

286

214

228

Number of UnitsProject

Average Price of Unit (R$

thd)

PSVEstimate (R$ thd)

% Cyrela

Fatto Mansões 215 48,953 92%

Tumelero 132 28,159 50%

Arboretto – phase 2 154 44,097 50%

Dez Curuçá 83 20,916 50%

Vitoria Pirituba 87 34,435 60%

Fatto Sport Faria Lima 118 32,816 79%

Avanti Parque São Lucas 115 45,951 40%

Parque dos Sonhos - phase 4 80 15,953 50%

Liber Park 112 42,453 75%

Total 123 377,625 61%

8

Living’s launches in the quarter

Avanti GuarulhosLaunched in Mar/2009PSV: R$ 37.7 millionUnits: 279Average price: R$ 135 thd/ un

Condomínio Brisas LifeLaunched in Mar/09PSV: R$ 50.4 millionUnits: 300Average price: R$ 168 thd/ un.

São Luís - MA

São Paulo - SP

Most of the projects in the quarter were launched in March

55% sold

100% sold

Vivace Residencial Clube1st phaseLaunched in Mar/09PSV: R$ 23.0 millionUnits: 155Average price: R$ 148 thd/ un.

Fortaleza - CE10% sold

Mérito Vila CuruçáLaunched in Jan/2009PSV: R$ 21.8 millionUnits: 197Average price: R$ 111 thd/ un.

São Paulo - SP

85% sold

Economic Project

Economic Project Economic Project

Mid-low Project

9

Living launches and pre-sales – 1Q09

Average sales speed

Launchesin R$ million

Pre-sales in R$ million

190

88

269

133

1Q08 1Q09

Cyrela Partners

16679

234

122

1Q08 1Q09

Cyrela Partners

-51% -48%

26%

35%

41%

63%

53%

9%

18%

21%

32%

3%

2%

26%

44%

66%7%

1%

2%

89%

88%

1Q09

4Q08

3Q08

2Q08

1Q08

In 3 months In 6 months In 9 months In 12 months

10

18,858

17,867

22,309 3,628 62,662

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Up toR$ 100 thd

From R$ 100 thd to

R$ 130 thd

From R$ 130 thd to

R$ 200 thd

From R$ 200 thd to

R$ 350 thd

Total

Living’s landbank – 1Q09

Landank by unit price

By Region By Segment

Obs.: Calculations in units

Potential PSV: R$ 8.5 billion (100%)

or R$ 6.1 billion (% Living)

93 Plots of land

Swaps: 66%

Middle6%

Economic70%

Super Economic

24%

South18%

Southeast65%

Northeast14%

North3%

11

OperationalResults

Reserva VerdeSerra, ESLaunched in March 2009

12

Cyrela’s Launches in 1Q09

NovAmérica Office ParkLaunched in March/09PSV: R$ 195.1 millionUsable area: 32,979 sq.m.Units: 548

AbsoluttoRe-launched in January/09PSV: R$ 30.7 millionUsable area: 9,405 sq.m.Units: 132

Novo Hamburgo - RS

São Paulo - SP

In January 2009, Absolutto, a project in Novo Hamburgo (RS) was re-launched and 65% sold

63% sold

65% sold

Escritórios SantanaLaunched in March/09PSV: R$ 53.4 millionUsable area: 9,016 sq.m.Units: 224

São Paulo - SP78% sold

NovAmérica Colorado Residence ParkLaunched in March/09PSV: R$ 82.6 milionUsable area: 24,961 sq.m.Units: 216

São Paulo - SP

88% soldOffice Project

Office Project

Medium Standard Project

Medium Standard Project

13

581416

811

554

1Q08 1Q09

Cyrela Partners

Launches

Launches by region and by brand – 1Q09

-32%

Launches – in R$ million

9 projects launched in 1Q09

(vs. 19 in 1Q08)

Chronology of launches in the quarterJanuary: Absolutto in RS (re-launch) andMérito Vila Curuçá – Living in SP;March:3 Living launches in Guarulhos – SP, São

Luis – MA and Fotaleza – CE.;Escritórios Santana, NovAmérica Office Park, Novamerica Residencial Colorado in SP, and Reserva Verde in Serra – ES.

1Q09 Launches: average price of R$ 244 thd

/unit or R$ 3.6 thd /sq.m.

LIVING: 24% of 1Q09 launchesCyrela76%

Living24%

SP71%

RJ0%

Expansion29%

14

778

346

1,125

502

1Q08 1Q09Cyrela Partners

Pre-sales

Pre-Sales – in R$ million

Pre-Sales by region and by brand – 1Q09

-55%

1.7 thousand units sold

Average price of R$ 284 thd/unit or

R$ 3.5 thd/sq.m.

Living: 24% of 1Q09 sales

Seller and Selling accounted for 51% of

quarter’s sales, or 56% considering only

the markets where they operate

Cyrela76%

Living24%

SP59%

RJ13%

Expansion28%

15

55.4%

41.6%

27.7%

15.2% 12.6%

2Q08 3Q08 4Q08 1Q09 12M

Sales speed – Cyrela + Living

Launches Sales Speed

1Q09 Sales according to launch periodR$ million–Cyrela’s share

VSO by quarterR$ million –Cyrela’s share

35%

31%

41%

67%

47%

8%

13%

10%

32%

2%1%

2%

35%

40%

59%

80%

79%

6%

1Q09

4Q08

3Q08

2Q08

1Q08

Launches In 3 months In 6 months In 9 months In 12 months

153116

42 29 4 1

44% 33%12% 8% 1% 0%

1Q09

laun

ches

2008

laun

ches

2007

laun

ches

2006

laun

ches

2005

laun

ches

Laun

ches

befo

re20

05

Pre-sales contracts % CBR % of 1Q09 pre-sales

16

Sales performance

Obs.: cálculo em unidades.

Up toR$ 100 thd

From R$ 100 thd to

R$ 130 thd

From R$ 130 thd to

R$ 200 thd

From R$ 200 thd to

R$ 350 thd

From R$ 350 thd to

R$ 500 thd

From R$ 500 thd to R$ 1 million

AboveR$ 1 million TOTAL

2006 98% 99% 92% 98% 89% 82% 61% 88%1Q06 100% 99% 100%2Q06 100% 100% 85% 74% 90%3Q06 97% 100% 90% 79% 94% 90%4Q06 98% 99% 91% 88% 86% 82% 45% 84%

2007 95% 89% 87% 85% 78% 88% 91% 87%1Q07 94% 95% 92% 98% 83% 94%2Q07 98% 99% 100% 84% 97%3Q07 96% 95% 95% 69% 79% 99% 91%4Q07 95% 88% 79% 79% 76% 90% 89% 84%

2008 75% 85% 78% 66% 63% 72% 58% 74%1Q08 63% 96% 93% 74% 71% 85% 75% 85%2Q08 99% 99% 85% 100% 90% 65% 90%3Q08 68% 99% 76% 61% 68% 96% 49% 71%4Q08 100% 56% 48% 73% 33% 14% 53%

2009 62% 19% 34% 45% 35%1Q09 62% 19% 34% 45% 35%TOTAL 84% 87% 79% 77% 71% 83% 70% 79%

Price per unit

Laun

ch p

erio

d

17

Units Delivered

Units Delivered

Units net of swaps

Large projects delivered: Paulistânia (SP) and Les Residences de Monaco (RJ).1.3 thousand units delivered in the first three months of 2009.94% of units delivered were sold.12 thousand units forecast to be delivered in 2009.Currently: 142 construction work sites throughout the country.

2,2113,178

1,266

12,000

2007 2008 2009e

1Q09 Units delivered and foreseen

18

Debt Transfer

41.2

9.9

2.4

9.4

6.2

2.8

10.5

Debt Transfer

Total in R$ million

ProjectsUnit

Average Price

Debt Transfer in

units

VEREDA IPIRANGA R$ 400 thd 71

GRAND LIFE SAÚDE R$ 400 thd 20

HUMANARI R$ 400 thd 27

PATEO POMPEIA R$ 480 thd 48

SARAU PINHEIROS R$ 500 thd 7

PAULISTÂNIA R$ 600 thd 29

Total 202

Debts transfers

Property to be financed by SFH:

Increase of price limit from R$ 350 thd/unit to R$ 500 thd/unit

Increase of price limit for eligibility of use of FGTS funds to R$ 500 thousand

Increase of percentage financed from 70% to 90% of the unit value up to R$ 500 thousand

Increase in demand for units in point of sales and in the Internet

Increase of debt transfer of delivered units previously forecast to be financed by Cyrela

19

SFH Financing

SFH Financing

R$

billi

on

Closer relationship with Caixa Econômica Federal (CEF)R$ 243 million were contracted in 2009

R$ 357 million will be signed soon

Amount forecast to be contracted until July/2009: R$500 million

Growth of debt transfersDebt transfers totaled R$41 million in 1Q09

R$67 million of debt transfers being done

Debt transfers forecast until July/2009: R$109 million

Balance due in March 31, 2009: R$799 million

Balance due: 0.8

Credit limit 8.1

Amount available

3.8

Contracted 4.3

20

Landbank

Potential PSV: R$ 38.6 billion (100%) or R$ 30.6 billion (% Cyrela)

Units in landbank: 138 thousand

193 plots of land – 69 of which outside the SP-RJ region

Swaps achieving 72%

Geographical distribution in March 31, 2009

SP31%

RJ39%

Expansion31%

Argentina0.3%

Nothern region3.2%

Southern region5.1%

São Paulo inlands11.1%

Rio de Janeiro38.7%

São Paulo Capital City

19.5%

Northeast19.9%

Minas Gerais0.4%

Espírito Santo1.8%

Southeast71.5%

21

Landbank in units

126 thousand units elegible through SFH

27%

up

to R

$ 13

0 th

d

91%

up

to R

$ 50

0 th

d

unitsin landbank

18,85817,867

37,219

32,93118,766 4,955 6,698 1,013 138,307

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Up toR$ 100 thd

From R$ 100 thd

to R$ 130 thd

From R$ 130 thd

to R$ 200 thd

From R$ 200 thd

to R$ 350 thd

From R$ 350 thd

to R$ 500 thd

From R$ 500 thd

to R$ 600 thd

From R$ 600 thd

to R$ 1,200

thd

Above R$1,200 thd

Total

22

Financial Results

Mérito Vila CuruçáSão Paulo, SP

Launched in March 2009

23

Financial Results – in R$ million

Net Revenues

Gross Income Backlog

+22%

+15%

- 4%

550.8

671.5

1Q08 1Q09

Net Revenues

219.5 252.1

37.5%39.8%

1Q08 1Q09

Gross Profit Gross Margin

4,081.7

5,124.2 4,920.6

37.2%36.2% 37.1%

2007 2008 1Q09

Revenue to be Recog. Gross Mg. To be Recog.

24

+47%


Expenses on Pre-Sales Contracts

EBITDA

Expenses on Net Revenues

+60%

Net Profit

94.5

151.2

22.5%

17.2%

1Q08 1Q09

EBITDA EBITDA Margin

68.5

100.5

12.4% 15.0%

1Q08 1Q09

Net Profit Net Margin

6.6%4.6%

7.6%

14.5%

10.9%

4.3%2.6%

5.6%

9.6% 9.5%

1Q08 2Q08 3Q08 4Q08 1Q09

Selling Expenses Gen. & Admin. Expenses

12.6% 12.1% 11.6% 11.6%

7.8%

8.3%6.7%

8.5% 7.6% 6.8%

1Q08 2Q08 3Q08 4Q08 1Q09


25

Accounts receivable – in R$ million

Accounts receivable performance(R$ milion)

Units under construcion

Units build

Construction cost to Incur - sold

Remuneration of receivable(R$ million)

Receivable schedule (R$ million)

Finished units: IGP-M + 12% p.a.Under construction: INCC

7,685

5,618

7,681

2007 2008 1Q09

Receivables

6,854

8317,685

3,095

1,6321,452944

513 475 423 387 350 301

1,209

2009 2010 2011 2012 2013 2014 2015 2016 2017 Until2028

26

Liquidity

1,372.9Net Debt with SFH

1,300.1Total Debt without SFH

TR + 10.5% a 12.0% a.a.2009 to 2014798.5SFH

Libor + 3.5%Sep/201146.3Loans – foreign currency(US$ 20 million)

CDI + 0.81% a.a.Nov/2010, Nov/2011, Nov/2012, Nov/2013264.3Bradesco (stand-by) and others

Debt(R$ million)

Balance onMarch 31

2009Maturity Cost

Debentures 1st issuance 500.0 2012, 2013, 2014 CDI + 0.48% a.a.

Debentures 2nd issuance * 489.5 2018 CDI + 0.65% a.a.

Total Debt with SFH 2,098.6

Cash and Cash Equivalents (725.7)

Net Debt without SFH 574.3

Net Debt with SFH

LTM EBITDA= 2.4 times

* Repactuation in 2010 and 2011

Net debt without SFH

LTM EBITDA= 1.0 time

27

Delays and Cancellations

Delays

Cancellations

Obs.: Taking into consideration only clients portfolio managed by Cyrela

1.09%1.34% 1.43% 1.35% 1.38%

1.52%1.64%

2.00%

1.92%

1.43% 1.37% 1.39%

1.79%1.59%

1.26%

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-0

8Ju

l-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Delays above 31 days

0.21% 0.20%0.23%

0.26%

0.23%0.22%0.22%0.23%

0.26% 0.27%

0.14%

0.17%

0.18%0.20%

0.07%

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Cancellation index = cancellations / active clients

28

HousingHousing ProgramProgram

Minha Casa, Minha VidaMinha Casa, Minha Vida

29

The program

Total number of houses to be built by wage range:

The price of the property to be financed varies according to the region as follows:

Maximum unit price for the 3 to 6 wages range is R$ 100 thd.

R$ 80 thdOther municipalities

R$ 100 thdMunicipalities with more than 500thd inhabitantsand other capital cities and metropolitan regions

R$ 130 thdSP, RJ and FD Metropolitan Regions

AmountMunicipality

7%Midwest200 thd6 to 10 MW

10%North100 thd5 to 6 MW

12%South100 thd4 to 5 MW

34%Northeast200 thd3 to 4 MW

37%Southeast400 thd0 to 3 MW

Houses per regionNumber of housesMinimum Wages

30

General Terms and Conditions

Deposit Guarantee Fund: loss of income and deliquency3 to 5 wages: 36 installments5 to 8 wages: 24 installments8 to 10 wages: 12 installments

Terms and Conditions:Effectiveness: contract term, after payment of 6 installmentsMinimum Payment: 5% of the summ of the installmentsPayment to the fund: 0.5% of the installment

Decrease in notary expenses for the customer:0 to 3 minimum wages: no cost. 3 to 6 minimum wages : 90% decrease6 to 10 minimum wages: 80% decrease

Decrease in notary expenses for the developer:Property up to R$ 60 thd: 90% decreaseProperty up to R$ 80 thd : 80% decreaseProperty up to R$ 130 thd: 75% decrease

31

Up to 3 Minimum Wages = R$ 1,395

Program detailsCapital cities and metropolitan regions, municipalities with more than 100

thousand inhabitants, and in special cases municipalities with 50 to 100 thousandinhabitants, according to their housing deficit.

No project delivery insuranceHouses or apartmentsUp to 500 units per module or 250 unit condos.

Pre-defined blueprintsBlueprint 1 – Ground houses – 32 sq.m. of usable areaBlueprint 2 – Apartment – 37sq.m. of usable area

Eligibility for buyingNot having benefitted previously from any government social housing programNot owning a private house and not having a financing contract in any other StatePayment of 10% of the income for 10 years, with minimum installment of R$ 50,00,

corrected by TR and register of the property by the wifeNo down payment and no payents during constructionNo charges for insurances (death and permanent disability or physical damage of

the property)

32

Contract detailsUpfront payment of the landFund transfer according to construction works development (24 hours after

work site check)No insurance for completion of worksSpecial Tax Regime– (PIS, COFINS, CSLL and IRPJ from 7% to 1%)No marketing expenses, once CAIXA is responsible for salesNo advertising expensesPre-defined price – SINAPI table (currently being discussed) + not included

items (BDI, project, construction site, among others)

555.00 Minimum

653.00 Low

909.00 Normal

Cost/sq.m. (R$)Standard

SINAPI table – Esimated cost for a typical blueprint: one story house (strip foundation) including living room, 2 bedrooms, corridor, bathroom and kitchen. Usable area: 34,32 sq.m.


33

Feasibility AnalysisCost reductionTaxes –5.5% related to PIS and CONFINS on the revenue. According to the

new rule, it is possible to extinguish this charge and even have a furtherdiscount of 0.5% (totaling 6%)

ITBI – it is usually around 2% of the land value (sale value). For thissegment, ITBI usually represents 8% of the PSV. This represents a reduction of 0.16% of the PSV.

Commercial expenses: reduction of 7.5%

Estimate reduction in sales price:

13.66%13.66%TotalTotal

4.00%Advertising

3.50%Brokerage Fees

0.16%ITBI

6.00%Taxes

% of PSV (reduction)Item


34

Construction works financing agreements :Financing of 100% of the construction cost with advanced transfer of up to 10% of

the total cost or land cost (whichever is lower)30% sold or 20% of units financed by CEF or according to sales speed analysis (15%)Transfers according to construction works developmentInterest rates: 8% p.a. + TRTAO: 1.5% of the amount transferredConstruction work completion insurance (0.6% of the work cost) and engineering

risk

Guarantees:Guarantee by the owner of the construction company/RE developerMortgage of the units– 1.3x the amount financed.Payment term up to 24 months after completion of construction worksDuring construction works: payment of interestsRequirement of insurance for completion of construction works and for engineering

risksMaximum of 500 units per module

From 3 to 10 minimum wages: from R$ 1,396 to R$ 4,650

35

Eligibility for buying:Not having active financing contract with SFHNot being granted any discount by FGTS since May 1st 2005 when signing

a housing financing contractNot being the owner, assignee, promissory buyer or not having the right of

acquisition of any other urban or rural residential property at the domicileregion or in the region where the domicile is intended to be established

SAC and PRICE tablesPercentage of total income assigned for payments: 20%Payment term: up to 30 yearsFinancing up to 100% of the property priceOptional down payment

0.68%8.47%8.16%6 to 10 MW

0.50%6.17%6%5 to 6 MW

0.42%5.16%5%3 to 5 MW

Interests(p.m.)

EffectiveInterests

(p.a.)

Nominal Interests

(p.a.)

Wagesrange


36

The table below shows the general requirements – Ref. SP, RJ, FD and metropolitan regions:


1.5% a 6.64%

1.5% a 6.64%

1.5% a 6.64%

1.5% a 6.64%

1.5% a 6.64%ExemptExemptExemptInsurance (% of

installment)

0.68%0.68%0.68%0.68%0.50%0.42%0.42%0.42%Rate (p.m.)

8.47%8.47%8.47%8.47%6.17%5.12%5.12%5.12%Effective Rate (p.a.)

8.16%8.16%8.16%8.16%6.00%5.00%5.00%5.00%Nominal Rate (p.a.)

360360360360360360360360Term (months)

124,000 111,000 99,000 87,000 94,000 95,000 84,000 74,000 Purchasing power

----2,000 9,000 16,000 23,000 Maximum subsidy

124,338 111,904 99,471 87,037 92,529 86,047 68,837 51,628 Maximum amount to be financed

920 828 736 644 552 460 368 276 Max. Amount ofinstallments (20%)

4,600 4,140 3,680 3,220 2,760 2,300 1,840 1,380 Wages

10 MW9 MW8 MW7 MW6 MW5 MW4 MW< 3 MW

New range accepted

37

Infrastructure

CharacteristicsFinancing up to 100% of the total costAdvancement of 10% of the total cost at the signature of the contractFunds from the Union available for subsidies: R$ 5 billion

GuaranteesGuarantee by the developersMortgage or deed of trust for the unsold unitsLien of the creditory rights related to the units soldBank guarantee

TermGrace period: up to the completion of construction works, limited to 18 monthsPayment: 36 months

RatesTJLP + 1% p.a.

38

General Details

Environmental Lincenses: faster and simpler. A Resolution to be passed by CONAMA by theend of April defines:

Uniform and simplified procedure for granting of environmental licenses for projectsoccupying areas up to 100ha or 1.000.000 sq.m.

Single license for the whole projectMaximum of 30 days for environmental license grantingUnified criteria for all federal entities

Engineering analysisDecrease from 225 to 30 items to be analyzedBrazilian norms and environmental lawsAcceptance of projects analyzed in other regions, respecting local legislation and

new implementation requirements.

Approval by CAIXACycle lowered from 120 to 45 days.Approval of credit granting to the client in up to 15 days (previously: 30 days)

39

YearlyFinancial

Information

Acqua VerdeCuritiba, PRLaunched in December 2008

40

2007

1,597.1

4,515.2

(26.3)

1,476.9

(2,604.7

4,081.6

(2,030.3)

36.2

R$ million

Sales to be recognized at the beginning of the period

Net sales recorded in the period

Revenues recognized in the period

Sales to be recognized at the end of the period

Cost of units sold to be recognized

Selling Expenses

Gross profit to be recognized

Percentage of gross profit

2008

4,081.6

3,974.4

(37.6)

1,906.9

(3,217.2)

5,124.1

(2,930.8)

37.2%

Pre-Sales to be Recognized

1Q09

5,124.2

481.9

(16.4)

1,809.1

(3,095.1)

4,920.6

(685.0)

37.1%

41

633.7 695.8 708.4

1,707.3

2,667.1

4Q07 3Q08 4Q08 2007 2008

Net Revenues


Net Revenues

Gross Income Backlog

+56%

+2%

+25%+52%

+12%

254.2 294.2 258.6

703.2

1,070.7

42.3%40.1%

36.5%40.1% 41.2%

4Q07 3Q08 4Q08 2007 2008

Gross Profit Gross Margin

4,081.7

5,124.2

37.2%36.2%

2007 2008Revenue to be Recog. Gross Mg. To be Recog.

42

Financial Results– in R$ million

Expenses on Pre-Sales Contracts

EBITDA

Expenses on Net Revenues

+37%

+2%

3.8%5.6% 4.6%

7.6%

14.5%

4.6%6.7%

2.5%4.0%

2.6%

5.6%

9.6%

3.0%4.4%

4Q07 1Q08 2Q08 3Q08 4T08 2007 2008


110.7 151.4 112.4

390.5

535.9

21.8%

15.9%

20.1%17.5%

22.9%

4Q07 3Q08 4Q08 2007 2008

EBITDA EBITDA Margin

13.6%11.3% 12.1% 11.6% 11.6% 11.9% 11.7%

8.9% 8.1%6.7%

8.5% 7.6% 7.7% 7.7%

4Q07 1Q08 2Q08 3Q08 4Q08 2007 2008


43

91.4 72.4 89.0

311.5366.5

13.7%10.4%18.2%14.4% 12.6%

4Q07 3Q08 4Q08 2007 2008

Adjusted Net Profit Adjusted Net Margin


Adjusted Net Profit

+18%

Adjusted in 2007 for the valorization of investiment in Agra

-3%

44

Appendix

Barra Prime OfficeRio de Janeiro – RJLaunched in Nov/08

45

1.9 1.9 1.8 2.2 3.0 4.9 9.318.3

30.0 30.8

3.3 2.7 3 2.8 3.95.5

7.0

6.9

10.5

5.2 4.6 4.8 5.0 6.910.4

16.3

25.2

40.645.8

15.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009e

SBPE FGTS

0

100

200

300

400

500

600

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

e

SBPE FGTS

Mortgage Credit Available

Mortgage Loans Funding (in R$ billion)

Source: ABECIP, Central Bank of Brazil and Secovi

65%

111%

73%

20%53% 46%

13% 10% 2% 2% 8% 6% 9%

249%

166% 156%141% 137% 125%

63%46% 37% 35% 33% 28% 17%

-20%

30%

80%

130%

180%

230%

280%

USA

Neth

erla

nds UK

Sout

h Af

rica

Irela

nd

Spai

n

Chile

Hung

ary

Indi

a

Braz

ilCz

ech

Rep.

Pola

nd

Mex

ico

Mortgage credit to GDP Ratio Total Credit to GDP

Mortgage to GDP Ratio

Source: Central Bank and Bradesco Corretora

CAGR 2003-2009e: 45%

Source: ABECIP, Central Bank of Brazil and Banco Real

Mortgage LoansRecord = 627.000 in 1980

CAGR 2003-2009e: 18%

Con

trac

ts(th

ousa

nds)

Housing Program“Minha Casa, Minha Vida” (in R$ billion)

Source: Programa “Minha Casa, Minha Vida”

34.0

7.5

25.5

1.0

FEDERALBUDGET

FGTS BNDES TOTAL

46

Demand in Expansion

São Paulo Rio de Janeiro

Source: SECOVI-SP/EMBRAESP Source: ADEMI-RJ

Supply to Sales - 12 month curve in units

Porto Alegre Fortaleza

Source: SINDUSCON-CE/FIECSource: SINDUSCON-RS




Jun-084.6

Jan-095.9

Apr-0213.8

Mar-0610.0

Dec-0011.6

Apr-0311.9

Jan-0512.2

Jun-076.4

Dec-00

Apr-01

Aug-01

Dec-01

Apr-02

Aug-02

Dec-02

Apr-03

Aug-03

Dec-03

Apr-04

Aug-04

Dec-04

Apr-05

Aug-05

Dec-05

Apr-06

Aug-06

Dec-06

Apr-07

Aug-07

Dec-07

Apr-08

Aug-08

Dec-08

Supply to sales

Dec-0817.4Jul-08

13.9Jun-04

14.1 Sep-0710.5

Aug-0518.7

Sep-069.5

Jan-0515.6 Dec-05

12.2Feb-08

12.3Feb-0710.4

Jun-0

4Sep

-04Dec

-04Mar-

05Ju

n-05

Sep-05

Dec-05

Mar-06

Jun-0

6Sep

-06Dec

-06Mar-

07Ju

n-07

Sep-07

Dec-07

Mar-08

Jun-0

8Sep

-08Dec

-08

Supply to sales

Mar-9819.1 Dec-06

15.2

Aug-0524.2

Aug-0423.8

37,622.015.8Jan-01

12.8Apr-9910.7

Dec-9616.9

fev-097.4

Dec-96

May-97

Oct-97

Mar-98

Aug-98

Jan-9

9Ju

n-99

Nov-99

Apr-00

Sep-00

Feb-01

Jul-0

1Dec

-01May

-02Oct-

02Mar-

03Aug

-03Ja

n-04

Jun-0

4Nov

-04Apr-

05Sep

-05Feb

-06Ju

l-06

Dec-06

May-07

Oct-07

Mar-08

Aug-08

Jan-0

9

Supply to sales

Aug-0715.8

Jun-0620.0

Jan-0618.3Jan-04

17.4

Apr-0224.9Dec-99

21.8Jan-01

15.4 Feb-0912.1

Dec-99

May-00

Oct-00

Mar-01

Aug-01

Jan-0

2Ju

n-02

Nov-02

Apr-03

Sep-03

Feb-04

Jul-0

4Dec

-04May

-05Oct-

05Mar-

06Aug

-06Ja

n-07

Jun-0

7Nov

-07Apr-

08Sep

-08Feb

-09

Supply to sale

47

Sales Performance – Residential – 2008

Source: Cyrela MID

São Paulo Rio de Janeiro

9% 12% 17% 20%

Cyrela’s stakes indicate strong sales performance in the main markets

Launches Pre-Sales Launches Pre-Sales

(R$ million) (R$ million)

4,123

720

Launches in RJ

1,949

384

Pre-Sales in RJ

MarketCyrela

40,520

4,794

Pre-Sales in SP

65,833

6,050

Launches in SP

MarketCyrela

48

Potential Sales Value (R$ million)

Launches 2004 to 2008 - SP Metropolitan Region

Units

Luxury > R$ 3,500/m²

Super-Economic < R$ 1,900/m²

Economic > R$ 1,900/m², <2,700/m²

Middle > R$ 2,700/m², <3,500/m²

11,314 8,449 8,371

8,937 12,721

28,9875,30710,129

18,864

4,051

9,611

28,78234,345 35,350

58,512

65,833

10,88411,821

21,52410,269

19,074

8,567

7,030

3,688

3,224

2004 2005 2006 2007 2008

1,098 753 760

1,803 2,6884,154

1,977

3,894

5,626

3,939

7,282

7,9979,607

11,274

17,422 17,822

9721,117

4,0721,928

7,326

3,242

5,052

3,320

3,119

2004 2005 2006 2007 2008

Source: Cyrela MID

49

Launches 2004 to 2008 - RJ and Region

Luxury > R$ 3,500/m²

Super-Economic < R$ 1,900/m²

Economic > R$ 1,900/m², <2,700/m²

Middle > R$ 2,700/m², <3,500/m²

Potential Sales Value (R$ million)Units

907 5062,4491,142 3,080

4,559

1,141

2,511

4,484

1,734

4,419

6,856 7,0197,831

13,350

15,911

1,171 1,302

2,680

5,8001,677

3,885

3,6661,491

2,363

2004 2005 2006 2007 2008

221 69 211200 659

791273

690

1,225

1,729

1,894

1,353

2,354

3,1473,446

4,121

219203

980759

975

509

1,272

883

659

2004 2005 2006 2007 2008

Source: Cyrela MID

50

Excellent Track Record of Growth

Consistent track record of growth in Launches and Pre-sales Contracts

Launches (in R$ million) Pre - Sales Contracts (in R$ million)

2004 – 2008 CAGR = 49%

2004 – 2008 CAGR = 48%

972 1,211

2,917

5,3934,827

3,3323,4281,924

1,004700

2004 2005 2006 2007 2008

Cyrela Partners

949 1,0231,915

4,392 4,612

713 7551,369

2,815 3,074

2004 2005 2006 2007 2008

Cyrela Partners

51

Cyrela Brazil Realty

*Adjusted for IPO expenses and according to BR GAAP before Law 11,638

EmployeesSeller Brokers & Team

Number of cities

Launches (Full Year)Pre-sales (Full Year)LandbankLow income units

Market Cap Cyrela Brazil Realty# Homebuilders listed

Market Cap of the Industry

Baixa RendaEBITDA Margin*Baixa RendaGross Margin

Baixa RendaNet Margin*

2005

202

100

3

R$ 1.2 bn

R$ 1.0 bn

3.0 mn sq.m.

0

R$ 2.4 bi

2

R$ 6.0 bi

524.427.1%

524.448.5%

524.423.2%

2007

529

743

47

R$ 5.4 bn

R$ 4.4 bn

8.8 mn sq.m.

6.7 thd

R$ 8.6 bi

21

R$ 48.1 bi

688.822.9%

688.841.2%

688.824.7%

2006

327

200

8

R$ 2.9 bn

R$ 1.9 bn

4.9 mn sq.m.

720

R$ 4.5 bi

4

R$ 10.0 bi

688.822.3%

688.842.2%

688.821.7%

2008

514

637

55

R$ 4.9bn

R$ 4.7bn

11.2 mn sq.m.

10.5 thd

R$ 3,3 bi

20

R$ 13,4 bi

688.820.1%

688.840.1%

688.813.7%

52

Joint Ventures

2008Middle / Mid-HighSão Paulo50%

% CBR Region Segment Year

50% São Paulo Middle / Mid-High 2006

50% South All 2006

50% São Paulo Mid-High / Luxury 2007

50% MG and DF All 2007

50% Buenos Aires All 2007

50% São Paulo Economic / Super Economic 2007



* Goldsztein Cyrela is under the process of acquisition as stated in the Relevant Fact of April 23 2009.

54

For the client:

- Amount limited to 80% of the sale

and evaluation value

- Guaranty: deed of trust

- Payment terms up to 30 years

For construction:

- Amount limited to 80% of the total

construction cost or R$ 350 thousand/unit

which can represent PSV of R$ 1 million/unit

- Guaranty: 120% of the amount due

- Payment term up to 4 years after completion

of construction

- All projects can be financed by SFH, taking

into consideration the maximum value of units

Financing by SFH

Up to R$ 350 thousandper unit

55

Typical Cyrela Project

Pre-sales 0 50 70 90 100 10080 95

% Budget Costs - - 0% 40% 100% 100%20% 65%

Revenues - - 0 36 100 10016 62

Up to 100M18M 24M 30M 36M12M6M0M

Assumptions for this example:

Potential sales: R$125 million

Exchange agreements (land): R$25 million

Does not include financial revenues in customer financing

Collections(cumulative)

Construction

Launch Go-ahead Delivery Completionof payments

6M - 9MLicensing

- 7 14 28 50 10020 34

56

Typical Economic Project

Contracted Sales(cumulative) - 70 80 10090 100

%Construction Cost - - 23% 100%55% 100%

Revenues(cumulative) - - 19 10049 100

18M 24M Up to 28M12M6M0M

Assumptions for this example:Potential Sales: R$110 millionExchange agreements: 100% (R$10 mn), Unit price 80% financed by partner banksClient is fully financed by the banks after the assignment of the financing to them

Collections(cumulative)

Launch Go-ahead Delivery

6 – 9 monthsPre-Launching

- 6 11 2013 100

Financing

Construction

Shorter operating cycle: 24 months

57

Financing: Interest and Term Impact

Model:Unit Value: R$ 120,000Loan-To-Value: 80%Loan: R$ 96,000Mortgage Effort: 30%

Example

Rental : R$800 per monthAnnual Yield: 8%

Equivalent to Loan Instalment with Real Interest Rate at 8% and 20 years

term.

Monthly Installment (R$)

Minimum Wages Required (monthly salary)

10 15 20 25 3012% 1,377 1,152 1,057 1,011 987 11% 1,322 1,091 991 941 914 10% 1,269 1,032 926 872 842 9% 1,216 974 864 806 772 8% 1,165 917 803 741 704 7% 1,115 863 744 679 639 6% 1,066 810 688 619 576 5% 1,018 759 634 561 515

Loan Term (years)

Rea

l Int

eres

t Rat

e (%

)10 15 20 25 30

12% 13 11 10 10 911% 13 10 9 9 910% 12 10 9 8 89% 12 9 8 8 78% 11 9 8 7 77% 11 8 7 6 66% 10 8 7 6 55% 10 7 6 5 5R

eal I

nter

est R

ate

(%)

Loan Term (years)

Cyrela Brazil Realty S.A. Empreendimentos e ParticipaçõesAv. Presidente Juscelino Kubitschek, 1455, 3th floor – Itaim Bibi – ZIP Code 04543-011 – São Paulo/SP – Brazil

www.cyrela.com.br/ir

Cyrela - Corporate Presentation - March 2009

Investor Relations

Transcript of Cyrela - Corporate Presentation - March 2009