CYRELA€¦ · CYRELA’SLAUNCHES R$ 532 million in 3Q17 vs. R$ 452 million in 3Q16. In 3Q17, %CBR...
Transcript of CYRELA€¦ · CYRELA’SLAUNCHES R$ 532 million in 3Q17 vs. R$ 452 million in 3Q16. In 3Q17, %CBR...
CYRELAPUBLIC MEETING
DECEMBER, 2017
This material that follows is a presentation of general background information about Cyrela Brazil Realty as of the date of the presentation.
It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential
investors. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy,
fairness, or completeness of the information presented herein.
This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward-looking statements are only predictions and are not guarantees of future
performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks,
uncertainties and factors relating to the operations and business environments of Cyrela Brazil Realty and its subsidiaries that may cause
the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking
statements.
Although Cyrela Brazil Realty believes that the expectations and assumptions reflected in the forward-looking statements are reasonable
based on information currently available to Cyrela Brazil Realty management, Cyrela Brazil Realty cannot guarantee future results or
events. Cyrela Brazil Realty expressly disclaims a duty to update any of the forward-looking statement.
Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act of
1933. Any offering of securities to be made in the United States will be made by means of an offering circular that may be obtained from
the underwriters.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither
this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
DISCLAIMER
Operational and Financial Results;
2018;
Sector Fundamentals;
Cyrela – Long Term.
AGENDA
3
CYRELA’S LAUNCHES
R$ 532 million in 3Q17 vs. R$ 452 million in 3Q16.
In 3Q17, %CBR of 71% vs. 57% in 3Q16.
259 380
1.1631.365
193152
500
419
7,3%
17,7%
9M17
1.784
9M16
1.663
3Q17
532
3Q16
452
CyrelaPartners
Launches
(R$ million)
% CBR
Ex-Swap and %CBR
Launches per Region and Product 2017
Middle West
South
Rio de Janeiro
11%
5%
6%
São Paulo
79%
9M16
21,3%
9M17
1.326
1.094
57% 71% 70% 76%
MCMV 2 and 3
Middle
22%
37%
High end41%
HERITAGE
Location: Rua Leopoldo Couto de Magalhães, 1.200 - Itaim Bibi.
Video
CYRELA’S PRE-SALES
%CBR of 76% in 3Q17.
Inventory sales in 3Q17 represents 63% of total sales
October and November sales amounted R$ 845 million vs R$ 730 million in 3Q17.
Sales
(R$ million)
% CBR
Ex-Swap and %CBR Pre – Sales by Region - 2017
(R$ million )
417554
1.2741.489
156176
401
517
19,7%
27,3%
9M17
2.006
9M16
1.675
3Q17
730
3Q16
573
CyrelaPartners
56%
Northeast
7%North and Others
2%South 6%
Rio de Janeiro
20%
São Paulo - Other Cities
9%
São Paulo
1.227
1.459
9M16
+19%
9M17
73% 76% 76% 74%
SALES SPEED
The SOS12M of 3Q17 attained 32,7% .
Pre – Sales by Launch Period
(R$ million)
Sales Speed
321
703
1.156
142
695
583
277
267
277
267
191
1.675
3Q17
730
3Q16
573
105
19,7%
27,3%
9M17
2.006
9M16
6%
2%
7%
16%
12% 4%5%
50%
640 47%31%
612 47%18%
532
22%
1274 78%50% 12% 10%
452 84%61%
In 15 months
In 12 months
In 9 months
In 6 months
In 3 months
Previous Years Launches
Previous Quarters Launches
Quarter’s Launches
43%38%FU/TI*
INVENTORY
R$ 6.2 billion in inventories (R$ 5.2 billion %CBR);
43% of finished units inventory.
Inventory
(R$ million)
Change in Inventory
(R$ million)
-3,6%
3Q17
6.212
3.556
2.656
2Q17
6.441
3.975
2.466
Units under construction
Finished units
*: FU = Finished Units / TI = Total Inventory
Units under Construction Finished Units
-3,6%
Inventory 3Q17
6.212
Price change
-31
Sales of launches
3Q17
-267
Launches 3Q17
532
Sales of inventories
-463-222
-241
Inventory 2Q17
6.441
R$ 2,656 million of finished units inventory (vs. R$ 2,466 million in 2Q17).
Finished Units
(R$ million)
Breakdown
FINISHED UNITS
Northeast 8%
South
15%
Minas Gerais
1%
Espírito Santo
2%
Middle West
3%
North2%
Rio de Janeiro
27%
São Paulo - Other Cities
25%
São Paulo
15%
PSV Delivered
7,7%
Finished Units 3Q17
Price change
2.656-85
497
Sales of finished
units
-222
Finished Units 2Q17
2.466
CANCELLATION CONSEQUENCES
Cancellation Consequences:
Lower net revenues
Negative impact in gross margin
Reduced cash generation
Double effort with selling expenses
]
3.390
5.444
CancellationsGross
Sales
-2.054
Net Sales
2.736
5.095
Cancellations Net SalesGross
Sales
-2.359
2.005
3.523
-1.518
Net SalesGross
Sales
Cancellations
2015 2016 2017
38% 46% 43%Cancellation / Gross Sales
Cancellation / Gross Sales
Cancellation/ Gross Sales
Cancelation out/nov: R$ 218 MM
SUBTÍTULO
Net Income
FINANCIAL RESULTS - YTD
(R$ million)
571
-144
151
448
661
498
600
9M172016201520142013
660
20122011* Data before “CPC” (IFRS 10 and 11) “Ex-RET”
Ex RET
Gross Margin Net Margin
31,4% 32,3% 32,7%32,1%
34,6%33,3%
27,5%
2011 2012 2013 2014 2015 2016 9M17
12,3%
8,8%
13,4%11,4%
10,3%
4,7%
2011 2012 2013 2014 2015 2016 9M17
CASH GENERATION*
Cash generation of R$285 million (R$182 million excluding the sale of stake in Tecnisa and in SPV
with CCP) in 3Q17 vs. R$64 million in 2Q17.
In the year, cash generation of R$467 million versus cash consumption of R$237 million in 9M16.
(R$ million)
*Ex dividend payment, buyback program and stake acquisition.
182
384103
83
-73
84
-164
64
285
2Q17
-20
3Q17 9M16 9M17
-237
467
Stake Acquisiton/Sell
Operational Cash Burn
SUBTÍTULO
LIQUIDITY AND DEBT INDICATORS
(R$ billion)
* Previous periods are presented in pro forma way, considering MAC thru Equity Results
9M17
22,8%
2016
25,1%
2015
22,2%
2014
32,8%
2013
39,6%
2012
41,5%
3,1
1,3
1,7
1,4
Cash and Equivalents
Term
1,6
Net Debt
1,2
3,4
2,1
Gross Debt 2Q17
1,9
1,2
3,1
Gross Debt 3Q17
Gross Debt
Net Debt / Equity
IndicatorsTotal Debt
DebtEx-SFH
Net Debt/ Equity
22.8%
Average CostW/o SFH: 102.6% CDI
SFH: TR + 9.3% p.y.
Duration 1.5 year 1.5 year
Short Term 43% 29%
Long Term 57% 71%
Operational and Financial Results;
2018;
Sector Fundamentals;
Cyrela - Long Term.
AGENDA
15
16
DELIVERIES¹
9%4%
OthersNorth East
7%South
RJ
7%North SP
19%
SP Int
21%
32%
6.2564.8035.412
1.638
4.859
2018
North + NE + CW
SP + RJ + South
-26,9%
-15,8%
56
2017
5.773360
2016
7.894
2016 2017E
¹ These numbers reflect the estimates according to the constructions site schedule. Therefore, there may be changes according to constructions development.
22%SP Int
North
29%
42%
6%
RJ
1%South
SP
2018E
Deliveries Highlights 2018E
Riserva Golf I and II (RJ) – PSV 900mi
Like Residencial Club (RJ) – PSV 208mi
Vidamérica Clube Resid. (RJ) – PSV 204mi
Way Orquidário Antúrio (SP) – PSV 192mi
Living Magic Osasco (SP) – PSV 175mi
Medplex Sul (South) – PSV 144mi
Cyrela by Pininfarina (SP) – PSV 113mi
0%
4%
OthersNorth East
12%
South
RJ
2%
North
SP
33%
SP Int
21%
28%
17
2018 LAUNCHES
São Paulo
10%South
Rio de Janeiro
83%
7%
35%
High EndMCMV
31%
34%
Middle
Region Breakdown
Mainly concentrated in São Paulo
Similar breakdown with 2016 and 2017
18
CYRELA FOCUS 2018
Cash Generation - Strong reduction of costs to incur tend to bring positive impact for FCF;
- Current structure is dimensioned for the “new Cyrela”;
- Departure of non-strategic regional continues;
- Contingencies may reduce;
G&A
Engeneering- The last construction in the North region will be delivery in 2018;
- Savings on constructions budget will happen but in a lower volume;
- Most of the launches will be in SP;
- MCMV may reach 35% of lanches;Launches
- Number 1 priority on sales of finished units;
- Cancellations should drop;Inventory
- The Company has been changing expensive debts for cheaper ones;
- Net Debt / Equity is in heathy position.Funding
Operational and Financial Results;
2018;
Sector Fundamentals;
Cyrela – Long Term.
AGENDA
19
SECTOR FUNDAMENTALS
CREDIT DEMOGRAPHY CONFIDENCE
1.5%
3.3%
5.9%
9.7%
13.0%
15.5%
18.0%
17.9%
15.1%
80 +
70 - 79
60 - 69
50 - 59
40 - 49
30 - 39
20 - 29
10 - 19
0 - 9
Consumer confidence isrecovering;
81%
69%61%
45% 43%
19%15%
9%
1 2 3 4 5 6 7 8
Residential Credit / GDP
47% of the population isamong the range 20 to 49 years-old.
Savings Account inflows have beenposting better results in 2017;
Interest rates are falling.
Residential Credit / GDP
70
80
90
100
110
120
130
jan/0
7
jun/0
7
nov/0
7
abr/
08
set/
08
fev/0
9
jul/09
dez/
09
mai/10
out/
10
mar/
11
ago/1
1
jan/1
2
jun/1
2
nov/1
2
abr/
13
set/
13
fev/1
4
jul/14
dez/
14
mai/15
out/
15
mar/
16
ago/1
6
jan/1
7
-15
-10
-5
0
5
10
440
460
480
500
520
540
Jan
-14
Mar
-14
May
-14
Jul-
14
Sep
-14
No
v-1
4
Jan
-15
Mar
-15
May
-15
Jul-
15
Sep
-15
No
v-1
5
Jan
-16
Mar
-16
May
-16
Jul-
16
Sep
-16
Net Savings (R$ bn)
Savings Account Balance (R$ bn)
Committed income
2014
DROP IN INTEREST RATES TENDS TOIMPROVE CREDIT APPROVAL
2016
Cost per unit
Real interest rate
Long term
Monthly installment
Monthly income
9% a.a
35 years
R$ 3.068
R$ 12.273
25,0%
R$400.000
11,5% a.a
35 years
R$ 3.678
R$ 14.712
25,0%
+ 2.5 p.p.
Example(premise: 80% LTV)
+ 20%
R$400.000
For 1% increase (decrease) in the interest rate, the monthly income must rise (fall) by
approximately 8%.
2017
R$400.000
9,5% a.a
35 years
R$ 3.126
R$ 12.505
25,0%
- 2.0 p.p.
- 15%
Operational and Financial Results;
2018;
Sector Fundamentals;
Cyrela – Long Term.
AGENDA
22
RECOGNIZED BRANDS AND DIVERSIFIED
PORTFOLIO
SPRJSouth
JV’s
Financial strength, credibility and entrepreunership.
FUNDING SCENARIO
24
Corporate
SFH
1.283
465
818
Amortization 2018
Possible funding structure readjustmentinduced by Selic’s fall
New debt at lower rates
SFH financing amount of R$ 258 million readyto withdraw
Capital markets still accessible to Cyrela
Latest fundings:
Private Asset – 98% CDI
CRI CVM 400– 98% CDI
Highlights
25
R$ Million – Sep/2017
3.050
2.023
814
Assets
10.931
731
Investments
Land
Inventory
Cash
Accounts Receiveble
Other
2.699
1.614
490
1.039
3.083
445
Debt
Supplier and Provisions
Liabilities
10.931
5.874
Other
Minority
Equity
CYRELA LONG TERM
(R$ 4.239 million including
off balance)
(R$ 6.212 million at
Market value)
Cash Generation
• Deliveries
• Reduced Costs to be Incurred
Lower Contingencies
• There are no overdue projects anymore.
Gross Margin
Reduced Cancellations:
• Lower Deliveries;
• Drop in interest rate;
• Flat prices.
Selling Expenses
• Lower expenses on maintenance of finished inventory.
• Reduction in Selling Expenses / Net Revenues ratio.
Launches
CONTACT IR
Cyrela Brazil Realty S.A. Empreendimentos e Participações
Av. Brigadeiro Faria Lima, 3.600
São Paulo - SP – Brasil
CEP 04538-132
Investor Relations
Fone: +55 (11) 4502-3153
www.cyrela.com.br/ri
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 thefinancial results of Cyrela Brazil Realty. These are just projections and, as such, exclusively based on management'sexpectations of Cyrela Brazil Realty regarding future business and continuous access to capital to finance the Company'sbusiness plan. Such future considerations rely substantially on changes in market conditions, government rules,competitor's pressure, segment performance and the Brazilian economy, among other factors, in addition to the riskspresented on the released documents filed by Cyrela Brazil Realty, and therefore can be modified without prior notice.