Gafisa and Tenda: A Case Study

Transcription

1 EARNINGS 1Q15 Conference Call May 8, 2015

2 SAFE-HARBOR STATEMENT We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management, and on information currently available to us. Forward-looking statements include statements regarding our intent, belief or current expectations of our directors or executive officers. Forward-looking statements also include information concerning our possible or assumed future results of operations, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,' ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future results and shareholder values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict. 2

3 GAFISA SEGMENT 1Q15 Results The Gafisa Segment launched one project in the first quarter, totaling R$75.2 million. Net pre-sales totaled R$179.8 million in 1Q15, down 4% y-o-y, and up 1% compared to 4Q14. In 1Q15 adjusted gross profit was R$125.5 million, with a 36.9% adjusted gross margin against 30.7% in 4Q14 and 35.7% in the previous year. Adjusted EBITDA reached R$58.3 million, with a 17.1% EBITDA margin compared to 16.7% from previous quarter and 16.8% from 1Q14. Selling, general and administrative expenses totaled R$43.0 million in 1Q15, a decrease of 16.5% y-o-y. In 1Q15 Gafisa s net profit was R$20.2 million, compared to net loss of R$2.3 million in the previous year. Excluding Alphaville s equity income, that reached R$17.0 million, Gafisa segment reported a positive net income of R$3.2 million. 3

4 GAFISA SEGMENT Operational and Financial Highlights (R$ 000 and % Gafisa) 1Q15 4Q14 Q/Q (%) 1Q14 Y/Y (%) Launches 75, ,145-74% Net pre-sales 179, ,294 1% 187,555-4% Net pre-sales of Launches 14,436 57,770-75% 37,915-62% Sales over Supply (SoS) 8.0% 7.2% 80 bps 7.9% 10 bps Delivered projects (Units) 1,847 1,412 31% % Net Revenue 340, ,947-31% 326,750 4% Adjusted Gross Profit 1 125, ,806-17% 116,530 8% Adjusted Gross Margin % 30.7% 620 bps 35,7% 120 bps Adjusted EBITDA 2 58,289 81,843-29% 54,810 6% Adjusted EBITDA Margin % 16.7% 47 bps 16.8% 30 bps Net Income (Loss) 20,203 36,819-45% (2,331) 967% 1) Adjusted by capitalized interests. 2) Adjusted by expenses with stock option plans (non-cash), minority. and does not consider the equity income from AUSA.. 4

5 SEGMENTO GAFISA Higher level of revenues and consistente gross margin Solid revenue performance, due to strong inventory sales, which represented 92.0% of net sales in the first quarter; The adjusted gross margin ended the quarter at 36.9%, ractifying the equilibrium and stability of the gross margin in the Gafisa segment, observed since the beginning of 2013, and the solid performance of its projects; SG&A decreased by 16.5% compared to previous year. Launches Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Adjusted Gross Margin 35.7% 36.9% 29.9% 30.7% Gross Sales by Market Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 SP + RJ Other Markets Net Income 1,664 1, % 5% 5% 3% 2% 1% 14% 98% 95% 95% 97% 98% 99% 86% 1Q13 1Q14 4Q14 1Q Q14 2Q14 3Q14 4Q14 1Q15 SP+RJ Other Markets 5

6 TENDA SEGMENT 1Q15 Results The Tenda segment launched 6 projects in this first quarter, totaling R$238.4 million in PSV. Net pre-sales totaled R$243.5 million in1q15, an increase of 370% y-o-y, and 92% compared to 4Q14. In 1Q15 adjusted gross profit was R$53.8 million, with a 30.0% adjusted gross margin against 28.6% in 4Q14 and 14.7% in the previous year. Adjusted EBITDA reached R$21.1 million, with a 11.8% EBITDA margin, compared to negative margins of 19.5% in the previous quarter and 23.5% in 1Q14. Selling, general and administrative expenses totaled R$27.8 million, a decrease of 10% y-o-y and 22% compared to the previous quarter. Tenda s net income was R$11.4 million in 1Q15, substantially higher than the net losses of R$28.8 million in 4Q14 and R$37.5 million in 1Q14. 6

7 TENDA SEGMENT Operational and Financial Highlights (R$000 and % Tenda) 1Q15 4Q14 Q/Q (%) 1Q14 Y/Y (%) Launches 238, ,549-1% 181,445 31% Net pre-sales 243, ,594 92% 51, % Net pre-sales of Launches 45,280 92,638-51% 20, % Sales over Supply (SoS) 23.3% 13.3% 1,000 bps 6.4% 1,690 bps Delivered projects (Units) 1,687 1,624 4% 1,272 33% Net Revenue 179, ,329 13% 105,951 69% Adjusted Gross Profit 1 53,800 45,262 19% 15, % Adjusted Gross Margin % 28.6% 140 bps 14.7% 1,530 bps Adjusted EBITDA 2 21,114 (30,856) 168% (24,913) 185% Adjusted EBITDA Margin % -19.5% 3,125 bps -23.5% 3,530 bps Net Income (Loss) 11,446 (28,774) 140% (37,460) 130% 1) Adjusted by capitalized interests. 2) Adjusted by expenses with stock option plans (non-cash), minority, and does not consider the equity income from AUSA. 7

8 TENDA SEGMENT Evolution in Level of Revenues and Higher Profitability New policy of sales processing (August/14) contributed for the reduction in dissolutions in 1Q15, allowing for a higher level of net sales; Launches % Adjusted Gross Margin 30.4% 29.8% 28.5% 28.6% 14.7% 12.3% 30.0% Reduction in legacy projects and expansion in the volume of launches in the New Model, allowing for recovery of profitability at Tenda; Adequacy in the SG&A structure, with a 22.1% reduction q-o-q due to decreased complexity in the operational segment. 33 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Gross Sales % 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Net Income by Model % 15% 45% 36% 28% 61% 90% 76% 85% 55% 64% 72% 39% 10% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q Q14 2Q14 3Q14 4Q14 1Q15 New Projects Legacy New Projects Legacy 8

9 CONSOLIDATED RESULTS Operational and Financial Highlights (R$000 and % Gafisa) 1Q15 4Q14 Q/Q (%) 1Q14 Y/Y (%) Launches 313, ,549 30% 535,379-41% Net pre-sales 423, ,888 39% 239,323 77% Net pre-sales of Launches 59, ,409-60% 58,171 3% Sales over Supply (SoS) 12.8% 8.9% 390 bps 7.5% 530 bps Delivered projects (Units) 3,534 3,036 16% 1,796 97% Net Revenue 519, ,276-20% 432,701 20% Adjusted Gross Profit 1 179, ,068-9% 132,093 36% Adjusted Gross Margin % 30.2% 430 bps 30.5% 400 bps Adjusted EBITDA 2 96,363 71,725 34% 26, % Adjusted EBITDA Margin % 11.0% 750 bps 6.1% 1,250 bps Net Income (Loss) 31,649 8, % (39,791) -180% 1) Adjusted by capitalized interests. 2) Adjusted by expenses with stock option plans (non-cash), minority. And does not consider the equity income from AUSA. 9

10 DEBT AND LEVERAGE Net Debt/Equity Ratio of 50.0% Leverage 1Q15 Debt Breakdown (R$ mm) Net Debt/Equity 2,258 2,485 2,519 1, ,101 2,024 1, x Cash burn of R$69.8M in 1Q15 1,404 1,408 1,385 1,440 1,563 1,280 1,463 1,535 1,157 1,116 Net Debt Availabilities Debentures FGTS Debentures WC Project Finance/SFH Working capital Obligations with investors TR % % CDI % % / IPCA % % 1,103 [VALOR] 14 TR % % / 117.0% CDI / 12.87% CDI % / 117.9% CDI CDI % 94.0% 96.2% 120.2% Total 2,651 Average Cost 12.83% (102.4% CDI) 36.1% 44.9% 44.9% 44.3% 47.1% 50.0% Debt Maturity Timeline Leverage Level In 1Q15 R$177.4 million in gross debt was amortized; Net effect was amortization of R$24.3 million; One of the smallest leverage levels in the sector, aligned to the Company s guidelines (55-65%). 38% 71% 87% 81% 62% 29% 13% 19% Up to Mar/16 Up to Mar/17 Up to Mar/18 After Mar/18 Corporate Debt Project Finance 10

11 SPIN-OFF PROCESS Processo de Spin Off Updated status Status Atualizado Ao longo do quarto trimestre, demos continuidade aos estudos para uma potencial separação das unidades de Since negócio the Gafisa beginning e Tenda. of the studies and evaluation of the potential separation of the GafIsa and Tenda business Durante o units ano de commenced 2014 foram in implementadas February 2014, uma a variety série de of ações, activities de modo have a been permitir executed uma operação in order independente: to make the two divisão business efetiva de units diversos independent departamentos, of one como another, Central from de Serviços, both an Gente operational e Gestão, perspective Jurídico, entre as well outras; as alteração from a capital do registro structure da categoria perspective. de emissor The following de Tenda actions junto à (CVM), that have passando already à Categoria been completed: A; atuação (i) junto separation aos bancos of the e administrative seguradoras para structures, abertura de with limite implementation de crédito independente of the changes para Tenda; required e mapeamento processes de contratos and systems, e avaliação (ii) de definition potencial impacto of policies em and virtude corporate do spin-off. governance, (iii) preparation of Tenda for having its shares traded in the market, Adicionalmente, and (iv) a performance Companhia of segue due dando diligence prosseguimento and studies of aos the estudos various finais impacts relacionados the separation às alternativas could have de on separação operational, das duas organizational, empresas. financial and market-related aspects of the Companies. Definition Dentre as iniciativas of the capital e estudos structure sendo is conduzidos, one of the podemos processes destacar: that is still ongoing, and the Company continues to work with financial institutions in order to achieve the conditions deemed necessary for the capital structure model, Avaliação considering das estruturas the business societárias cycles possíveis; of each of the business units. Evolução dos processos de abertura de crédito em Tenda; As stated Avaliação in a sobre Material a futura Fact estrutura released de to governança the market corporativa on April 29, de these Tenda; discussions are ongoing and are taking longer Avaliação than had junto been a BM&F/Bovespa expected initially. dos As procedimentos a result, considering necessários that para this a definition negociação is a de necessary Tenda, e avaliação step in the de separation potencial process, listagem it de is ADR not Nível yet possible 1; to determine when the potential separation will be concluded with precision, Definição and de it um is possible modelo de that estrutura the process de capital could adequada extend into ao ciclo de negócios de cada uma das empresas. Conforme informado quando do anuncio dos estudos iniciais, nossa expectativa é de que a potencial separação, caso aprovada, venha a ser implementada ainda no ano de A Companhia manterá seus acionistas e o mercado em geral informados quanto à evolução e os desenvolvimentos dessa potencial separação

12 RECENT EVENTS Eventos Recentes Material JCP e Fact Dividendos Potential Transaction No dia 12 de fevereiro de 2014, a Companhia distribuiu juros sobre o capital próprio para seus acionistas no montante total de R$130,2 milhões, e ao final do ano no dia 11 de dezembro de 2014 foi efetivado o pagamento de dividendo complementar, na totalidade de R$32,9 milhões. Dessa maneira, no exercício de these 2014, studies. a Companhia distribuiu a seus acionistas um total de R$163,1 milhões, aproximadamente R$0,40 por ação, representando um yield caixa de 17,9% that ante could o preço result in de the fechamento creation of value de for the In a Material Fact released to the market on April 29, the Company informed the market that it had been contacted by groups interested in evaluating the potential acquisition of an equity stake in Gafisa and Tenda, either together or separately. At this time, no proposals have been accepted or any contracts entered into by the Companies, with the exception of confidentiality agreements due to requests for information by the interested parties involved in The Administrations, in accordance with their fiduciary responsibilities, will evaluate any proposals Companies and will communicate to their shareholders and the market in general any evolution in these discussions through presentation of a formal proposal. Programa Share Buyback Recompra Program Ações Desde o início de 2013 a Companhia, por meio de seus programas de recompra de since ações, the já end adquiriu of 2013, no mercado through the 73,2 variety milhões of buyback programs offered during the period, we de ações, totalizando um desembolso de have acquired 63.2 million shares. Of this amount, 57.5 caixa million, de R$208,7 representing milhões 15.2% nos últimos of total shares 24 issued meses. by Apenas the Company, no ano de have 2014, already foram been cancelled. recompradas In 1Q15, 54,7 milhões through de the ações, old buyback program, perfazendo the R$137,4 Company milhões acquired 10.9 million shares, desembolsados. which amounted Do total to de disbursements ações of R$22.1 million. adquiridas, 57,5 milhões foram canceladas, representando cerca de 15,2% do total de buyback ações emitidas program, pela which Companhia. began in February of this year, Atualmente, with a limit há um of up novo to programa 27 million de common shares. recompra When de added ações to no the total 10.8 de 27,0 million milhões shares currently de ações held a ser in treasury, executado the até total fevereiro corresponds de to approximately 2016, respeitando 10% of o the limite total de common alavancagem shares issued consolidada by the Company. de 60%. Reaffirming our commitment to our shareholders, Furthermore, the Company started a new share 12 12

13 THANK YOU /ri