1Q08 Earnings Release Conference Call. May 7, 2008

Transcription

1 1Q08 Earnings Release Conference Call May 7, 2008

2 Disclaimer Forward-Looking Statements The forward-looking statements in this presentation are based on Management s current forecasts and outlook. Actual results, performance and events may differ significantly from those expressed or implied in these forward-looking statements as a result of several factors, including the general and economic conditions in Brazil and abroad, changes in interest and exchange rates, future renegotiations or prepayments of liabilities or loans denominated in foreign currency, as well as changes in laws, regulations and general competitive factors (regionally, nationally or globally). 2

3 Introduction Projects Announced Financial Performance Conclusion Questions & Answers 3

5 2008 Highlights 1Q08 5 projects announced 1 project in the state of Alagoas with 1.95 million m 2 2 boutique projects - Paraty (Rio de Janeiro) and Salvador (Bahia) 1 project to be developed with the Spanish group Single Home in Trancoso (Bahia) 1 real estate development project with a hotel school in Canavieiras (Bahia) Agreement with Starwood 1 st Invest Tur Day at Txai Resort Itacaré (Bahia) Hiring of Chief Operating Officer Initiating Coverage report from Credit Suisse, with Outperform recommendation Txai Itacaré was selected by the New York Times as one of the ten tourism destinations in the world 5

6 2008 Highlights Subsequent Events Shareholders Meeting held in April: Change company's name to: Invest Tur Brasil Desenvolvimento Imobiliário Turístico S.A. Change newspaper to publish legal information to VALOR Approval of new independent member of the Board of Directors representing shareholders, Jorge de Pablo Cajal, manager of the Latin America portfolio of Amber Capital Acquisition of 8.3 million m 2 in the states of Piauí and Maranhão for long-term development 80% of 2008 guidance for project acquisition achieved, having acquired 16 of the 20 projects expected 6

7 7 Inflow of Good News for the Tourism Segment Brazil will host Soccer s World Cup in 2014 Inter-American Development Bank (IDB) provides US$ 1 billion for the tourism segment Source: DCI - 03/14/ th year of growth in the tourism segment with revenues of R$ 34 billion Source: DCI - 03/18/2008 New Flights Coming From Spain Air Comet Source: O GLOBO - 04/03/2008 New regional Airline Company in Brazil being formed by the founder of JetBlue Source: Folha de São Paulo - 04/03/2008

8 MOU with Six Senses signed in December 2007 International operator of high-end hotels, with headquarters in Bangkok (Thailand) Development of 3 resorts under the brands Six Senses Hideaway, Six Senses Latitude and/or EVA by Six Senses Strategic Operators MOU with Starwood signed in March 2008 One of the leading hotel and leisure companies in the world, with 9 different brands: St. Regis, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton, W, Le Méridien, AloftSM and ElementSM Option exercised in October to acquire 50% + 1 share of Txai Hotel in Itacaré and the Txai brand Resort in operation since 2000 under the luxury boutique concept Recognized by Condé Nast Johansens as the Most Excellent Resort in South America in 2007 The TXAI brand will initially be replicated in 4 locations already identified: Paraty (RJ), Santa Catarina (SC), Salvador (BA), Maceió (AL) 8

9 Introduction Projects Announced Financial Performance Closure Questions & Answers 9

10 Strategic and Diversified Positioning RR AP AC AM RO Portfolio strategy based on multiple and selected locations throughout Brazil MT MS PA RS PR SC GO SP TO MA MG PI RJ Port Beach BA ES CE Long Beach RN PB PE AL SE Onda Azul / Green Wave Txai Salvador Txai Itacaré* Nossa Senhora Vitória Marina / Praia da Ponta / Atalaia Golf Boutique / Singlehome Trancoso Txai Paraty / Deep Beach Paraty São Paulo Fair Txai Santa Catarina States with Invest Tur presence States with projects under negotiation * 10

11 Summary of Existing Land Bank GR Product Capital Investment Lot Area ( 000 m 2 ) Rooms / Homes 10 Luxury Boutique Hotels 5 Resorts 13 Residential Developments 2 Long-Term Land Bank Resort: R$ 365 MM Residential: R$ 1,016 MM LTLB: R$ 33 MM 71, bungalows 1,241 rooms 2,449 homes 6 Lots Invest Tur PSV (Residential Developments) = R$ 2.0 bi Onda Azul 175 Marina Golf Nossa Senhora Vitória 209 Long Beach 180 Praia da Ponta 33 Txai Paraty 115 São Paulo Fair Txai Santa Catarina Green Wave Deep Beach Paraty Single Home Trancoso 48 Txai Salvador 35 Atalaia 76 Port Beach Invest Tur s PSV Partner s PSV 11

12 Demand Profile Projects in Portfolio TOTAL ROOMS (1,241 rooms bungalows) TOTAL RESIDENTIAL UNITS (2,449) TOTAL BY PSV (R$ 1.7 bi *) Standard by stars 3% 40% 10% 37% 5% 47% % 53% 48% Target market Domestic 66% 34% 70% 30% 61% 39% International * Excludes long-term land bank 12

13 Txai Salvador Hotel & Location & Characteristics Located in the historical center of Salvador (state capital of Bahia) Daily domestic and international flights Invest Tur s Share: 100% Real Estate Development Investment: R$ 29 million 96 residential units Estimated PSV: R$ 47 million Hotel Project Investment: R$ 17 million Boutique hotel with 48 rooms Area: 9,000 m 2 Investment: R$ 46 million Disbursement: 3 years 13

14 Atalaia Location & Characteristics Canavieiras (in the state of Bahia), 110 km from Ilhéus Located near the Marina and Praia da Ponta projects Real Estate Development 50 residential units Estimated PSV: R$ 35 million Development of a hotel school & training center Invest Tur s Share: 100% Area: 105,000 m 2 Investment: R$ 21 million Disbursement: 4 years 14

15 Port Beach Location & Characteristics Located between the states of Piauí and Maranhão, the project has 4.5 million m 2 located in Pontal da Amarração and 3.8 million m 2 in Ilha da Barreira Long-Term Land Bank Estimated PSV of land sales: R$ 76 million World s third-largest river delta flowing into an ocean Invest Tur s Share: 100% Area: 8.34 million m 2 Investment: R$ 19 million Disbursement: 6 years 15

16 Investments & Perspectives Project announcement: 10 projects announced in 2007 Guidance of 10 new projects in 2008, with 6 already announced Launch Forecast : Estimated PSV of R$ 600 million (*) to be launched in 2008 Based on projects already announced as well as the new projects to be announced in 2008, total investment is estimated at R$ 1.7 billion over the next 6 years: R$ 1.4 billion related to projects already announced R$ 300 million related to projects expected to be announced by yearend 2008 (*) Invest Tur s share Investment Projects Announced (R$ Million) Total Estimated Investment (R$ Million) and after Announced To be announced Total 16

17 Introduction Projects Announced Financial Performance Closure Questions & Answers 17

18 Consolidated Income Statement Consolidated Income Statement (R$ '000) Gross Operating Revenue - 2,521 Net Operating Revenue - 2,337 Gross Profit - 1,424 General and Administrative Expenses EBITDA (8,432) (9,041) 7% Other Operating expenses (432) (613) 42% Taxes and Fees (563) (78) -86% Profit before Financial Result (9,428) (9,732) 3% Financial Expenses (57) Financial Revenues 20,658 Financial Income 20,601 Earnings before Income Tax and Social Contribution 4Q07 11,173 1Q08 Income Tax and Social Contribution - (2,927) 1Q08 X 4Q07 Cost of goods and services provided - (913) n/a (8,432) (10,465) 24% Net Income in the period 11,173 4,572-59% n/a n/a n/a (341) 495% 17,572-15% 17,231-16% 7,499-33% n/a Main highlights: Net Revenues of R$ 2.3 million mainly from the Txai Resort Itacaré operations 24% increase in G&A Expenses to R$ 10.5 million, 50% of which are related to expenses of Txai Itacaré Financial Income of R$ 17.6 million, down 15% vs. 4Q07 due to lower net cash position Net income totaled R$ 4.6 million 18

19 Consolidated Balance Sheet Main Variations: Reduction of 13% in Cash and Cash Equivalents Receivables totaled R$ 583,000 resulting from Txai Itacaré Inventory Backlog of R$ 308 million, 67% higher than in 4Q07, due to the acquisition of Green Wave, Deep Beach, Singlehome, Txai Salvador and Atalaia projects Permanent Assets of R$ 32 million Assets Current Assets Cash Marketable Securities Recoverable Taxes Clients Advances to Suppliers Prepaid Expenses Inventory Others Long-term Assets Consolidated Balance Sheet (R$ '000) Inventory of Properties to be Sold 4Q07 1Q08 1Q08 x 4Q07 748, , % % 735, , % 74 0 n/a % % % % n/a 192, , % 184, , % Recoverable Taxes 8,582 11, % Credit from related persons % Permanent Assets Investments Fixed Assets Deferred Taxes Total Assets 32,011 32, % 20,750 20, % 10,859 11, % % 973,422 1,007, % 19

20 Consolidated Balance Sheet Main Variations: Total of R$ 1.3 million in Loans and Financing related to the Txai Itacaré project Accounts Payable of R$ 82 million, 60% higher than in 4Q07, due to the land and companies (SPEs) acquired R$ 9.5 million related to minority interest Liabilities Current Liabilities Loans and Financials Suppliers Consolidated Balance Sheet (R$ '000) Taxes, Fees and Contributions Labor and Tax Liabilities Loans Advances from to related Suppliers parties 4Q07 60,626 93, % 1,788 1, % 2,295 1, % 2,362 2, % Accounts Payable 49,309 79, % Sundry 1, % Long-term Liabilities 4,214 4, % Loans and Financials 2,046 2, % Accounts Payable 2,000 1Q08 1Q08 x 4Q , % 2,205 4, % 2,000 Sundry 2 0 n/a Debentures % Loans from related parties 66 0 n/a Minority Interest Shareholders' Equity Capital Stock Accumulated gains/losses Total Liabilities and Shareholders' Equity 0.0% 13,231 9, % 895, , % 945, , % (49,750) (45,178) -9.2% 973,422 1,007, % 20

21 Disbursement - Announced Projects - R$ Million Considered a fase pré-operacional e as despesas da Oferta Pública em 2007, a Companhia não apresentou lucro no período encerrado em 31 de dezembro R$ 308 million, equivalent to 35% of the net proceeds raised in the IPO, were already used to acquire projects Total Disbursements Payable 21 21

22 Share Performance and Trading Volume Potential for Stock Price Appreciation: Initiating Coverage report from Credit Suisse with Outperform recommendation Restrictions imposed by CVM to end in December 2008 Share Price of R$ 730 vs. NAV / Share of R$ Share Price vs. NAV (1)(2) Credit Suisse hired as Market Maker aug-07 sep-07 nov-07 dec-07 jan-08 mar-08 abr Cash / Share: Land Acquired / Share: NAV at Cost / Share: R$ 666 million R$ 290 million R$ 956 million Volume (R$ million) NAV/ Share Price (US$) Notes: (1) May 02, (2) NAV= (Cash and Cash Equivalents + Land Bank Acquired Payments related to land acquisitions) / total shares 22

24 FINANCIAL & IR OPERATIONS Invest Tur Corporate Goals for 2008 Area 1 st Half nd Half 2008 TXAI INSTITU TIONAL HR Acquisition of 5 areas Sign MOU with Six Senses Sign MOU with Starwood Sign MOU with an international operator/codeveloper Sign agreement with operators for 7 projects Approve master plan for 6 projects Professionalize and restructure Txai Itacaré operations Go live SAP Best Practices Sign hotel construction loan agreement with BNB for Marina project Presentation to CS Sales Force in NY and one-onone meetings 1 st Invest Tur Day Conferences with Santander, CS (NY&SP) and UBS 2-day non-deal roadshow in Buenos Aires Participation in HSBC Conference (NY) Institutional folder Approval of Compensation Plan Hiring of Operations Director Hiring of Sales, HR and Marketing Manager Implement operational partnerships Launch 4 projects equivalent to R$ 600 million in PSV Achieve R$ 100 million in sales Acquisition of 5 areas Sign agreement with operators for 3 projects Approve master plan for 3 projects Hire international Public Relations firm Implement Txai operator structure Go live SAP Integrated Planning File for BNB financing for 4 projects Sign term-sheet for end buyers local financing Sign term-sheet for end buyers international financing Non-deal roadshows in USA and Europe Public Meeting in São Paulo and Rio de Janeiro New website (institutional & IR) Sign agreement with Instituto Socioambiental Conclude and implement social-environmental policy Invest Tur Marketing and Branding Plan Internal Integration Program Implement Compensation Committee Note: Already concluded 24

26 Market Maker Credit Suisse USA: Gregory Piccinnino Europe: Edward Weaver Brazil: Mauro Oliveira Equity Research Coverage Credit Suisse Marcelo Telles Rodrigo Oliveira Invest Tur IR Contact Andrea Ruschmann (CFO) Camila Pannain (Analyst)