Credit Suisse II Brazil Construction & Mortgage Field Trip. August 30th, 2007 SÃO PAULO

Transcription

1 Credit Suisse II Brazil Construction & Mortgage Field Trip August 30th, 2007 SÃO PAULO

2 Speakers Cesar Parizotto CEO Marco Parizotto Commercial Vice-president Ricardo Perpetuo CFO and IRO 2

3 Agenda Chapter I Inpar s Pre-IPO Operational Cycle Chapter II 2007 and 2008: Commitment to Execution - Land Bank by Region and Segments - Multi-Skilled Team by Region Chapter III Special Projects - Strategic Land Bank - Understanding Lagoa dos Ingleses Chapter IV 2Q07 Financial Results Chapter V Looking Ahead - Sustaining Continuous Growth & Profitability Drivers 3

4 Chapter I Inpar s Pre-IPO Operational Cycle

5 Overview São Paulo largest real estate company over the last 10 years (VGV, m 2 and units delivered - EMBRAESP), having delivered projects valued R$4.7 billion since its foundation Integrated Business Model Know How in Multiple Segments Residential (from low income to high end) Commercial Tourism Land parceling Presence in 12 States in Brazil Land bank with an estimated VGV of R$11.2 billion IPO successfully completed in June

6 Proven Expertise In Large-scale Operations Largest real estate company in São Paulo, Brazil s largest market from January 1996 until December 2006 (1) 13,595 units delivered related to 147 buildings and 2 condominiums with a usable area of 2.1 million m 2 1 building delivered per month on average over the last decade. Deliveries and Launches Values (2) (R$ million) VGV Launched VGV of delivered units Anticipated sales of development projects with VGV higher than R$ 600 mi Avg.: Avg.: VGV delivered until 2006: R$ 4.7 billion VGV launched until 2006 (3) : R$ 5.0 billion (1) Source: Embraesp. (2) All values are adjusted by InPar share in the projects and the enterprises of Rodes and Plarcon its just considered in 2005 and (3) VGV launched since

7 Residential Segment Track Record R$ 3.1 bi (62% of VGV Launched) High end Before IPO R$ 1.1 bi 19 buildings 632 units R$ 4,500/m m 2 R$ 3,000/m m 2 R$ 2,000/m 2 80 m 2 R$ 1,300/m 2 40 m 2 Mid-high Middle Low income R$ 532 mi 20 buildings 921 units R$ 1,3 bi 48 buildings 3,346 units R$ 211 mi 23 buildings 1,671 units 7

8 Commercial Segment Track Record R$ 833 mi (17% of the VGV Launched) Offices Before IPO R$ 374 mi 209,602 m² 13 buildings Mixed-use And Corporate Structures R$ 459 mi 180,154 m² 5 buildings Build-to-suit 83,477 m 2 9 buildings Medical Facilities Under construction

9 Tourism Segment Track Record R$ 1.1 bi (21% of VGV Launched) Resorts Before IPO R$ 10 mi 5 buildings 381 rooms 5 star hotel R$ 144 mi 5 buildings 1,049 rooms 4 star hotel R$ 849 mi 13 buildings 3,412 rooms Low income hotels (2 and 3 stars) R$ 207 mi 6 Buildings 754 rooms 5,596 rooms 9

10 Urban Development and Land Parceling Track Record Barra da Tijuca Rio de Janeiro Before IPO 70 s Residential Commercial Land parceling and Tourism (more than 3 million of m 2 ) 10

11 Chapter II 2007 and 2008: Commitment to Execution - Land Bank by Region and Segments - Multi-Skilled Team by Region

12 2Q07 Launches Region Segment Low income Cidade de 2Q07 Launches State Segment VGV Total InPar Share VGV InPar Launch Date (R$ million) % (R$ million) Residence Garden Calhau MA Mid-High 16 70% 11 06/28 Versatille Condominium MA Middle 29 70% 21 06/28 Reserva dos Jequitibás ES High % 24 05/24 Reserva dos Manacás ES High % 16 05/24 Reserva dos Jatobás ES High 9 100% 9 05/24 Inpar Medical Center SP Commercial % 72 * 06/30 Sports Garden Leste SP Middle % 42 06/30 Viver Mooca SP Low Income % 19 05/18 Park Plaza - Part I RS Middle 53 70% 37 05/18 TOTAL * VGV calculation based on present value of yearly annual revenues, considering 12% rate p.a. R$250MM Launched IPO June 6th

13 2Q07 Launches Reserva dos Jequitibás 12 units VGV: R$ 24 million High Reserva dos Manacás 17 units VGV: R$ 16 million High Mid-High Middle High Residence Garden Calhau 30 units VGV: R$ 11 million Park Plaza 310 units VGV: R$ 37 million Reserva dos Jatobás 13 units VGV: R$ 9 million 13

14 2Q07 Launches Sports Garden Leste 208 units VGV: R$ 42 million Middle Versatille Condominium 135 units VGV: R$ 21 million Middle Viver Mooca 156 units VGV: R$ 19 million Low Income Prime Medical Center - Itaim VGV: R$ 72 million 8,5 thousand m² of rental area Laboratórios Fleury will lease 1/3 Sales in 2008 Commercial 14

15 Pre-Sales 2Q07 Pre Sales by Product Lines Pre Sales by Region (R$ million) (R$ million) 100% % ,0 37,3 11,0 31,5 99,4 37.8% Pre- Sales over Launches 37.8% Pre- Sales over Launches 15,3 1, ,2 6, % Pre- Sales over Launches 37.8% Pre- Sales over Launches 25, ,0 25, ,4 44,2 18,6 6,5 6,5 Launches 2Q07 (*) Pre-sales on launches Pre-sales including inventory Low Income Middle Mid-high High 17,8 60,3 17,8 15, ,7 13,5 Launches 2Q07 (*) Pre-sales on launches Pre-sales including inventory São Paulo Espírito Santo Maranhão Rio Grande do Sul Rio de Janeiro * Does not consider Medical Building (R$72 MM) 15

16 Short Term Land Bank (2H07/2008) Region 2H Short-term Land bank (1) R$ 3,5 bi Segment VGV InPar # of Projects R$ 1,3 bi R$ 2,2 bi Low income 2Q07 Launches R$ 250 million R$904 million (26% of land bank), more than 10,000 units, in low income segment, making InPar one of the largest company s in the segment (1) Short term Land bank includes 2007 and 2008 launches 16

17 Short Term Land Bank (2H07/2008) 2H VGV InPar R$ 1,3 bi R$ 2,2 bi Region 07 Region 08 Short-term Land bank (1) R$ 3,5 bi Short term Land bank 31% (1) Segment 07 Segment 08 Low income Low income (1) Short term Land bank includes 2007 and 2008 launches 17

18 Execution Capacity RJ Commercial Structure # Proj. VGV RR AP Antonio Henrique Neves RJ, MG, ES and Northeast Ernesto Raposo NE and MG AC AM RO MT PA TO DF MA PI BA CE RN PB PE AL SE Flávio Neves MG, RJ and ES SP Commercial Team # Proj. VGV GO Marco Parizotto South, North, Mid West and SP MS SP MG RJ ES Gerson Bendilatti Low Income Enzo Riccetti SP State RS PR SC Partnership Low Income Sérgio Pardal South, North and Mid West Rodrigo Chade Resorts and Land Parceling Presence Partnerships Expertise and structure allow INPAR to cover the entire country, creating attractive business opportunities in less competitive markets 18

19 Chapter III Special Projects - Strategic Land Bank - Understanding Lagoa dos Ingleses

20 Strategic Land Bank Pedreira - Vitória Short term Land bank 31% R$ 3,5 bi R$ 7,7 bi Strategic land bank Land bank R$ 11,2 bi 69% Raposão São Paulo São Paulo Minas Gerais Espírito Santo Launch: 1º 1 half / 2009 Middle / High end Total Area: m² m VGV: R$ 904 thousands Lagoa dos Ingleses Belo Horizonte Launch: 2º 2 half / 2008 Low Income Total Area: 444,745 m² m VGV: R$ 879 mi (1) Source: IBGE Launch: 2º 2 half / 2007 Residential, Lots and Commercial Total Area: m² m VGV: R$ 5.8 bi Strong presence in the biggest states of Southeast the most important market, which represents 34% of the population and more than 40% the Brazilian GDP (1) 20

21 Strategic Land Bank Special projects land bank s share of total VGV launches 2007 and 2008 A VGV cushion each year for the long run (no more than 20% of the total launches) R$ 2.2 billion R$ 1.5 billion 81% 82% 9% 18% 10% Raposão Lagoa do Ingleses Other 21

22 Lagoa dos Ingleses Location Master Plan Serra da Moeda Rodovia BR-040 Mannesmann Belo Hrizonte Rio de Janeiro Condomínio Lagoa do Miguelão Condomínio Água Limpa Rodovia BR-356 MBR Ouro Preto 2H07 Developments Quintas da Lagoa Mirante do Sol 2H VGV Defined R$ 273 MM R$ 190 MM Potential VGV R$ 273 MM ~ R$ 300 MM 22

23 Chapter IV 2Q07 Financial Results

24 Main Financial Indicators * Before IPO 24

25 General and Administrative Expenses Employees 2Q06 2Q07 2.4% of Launched VGV Management Office emp. Construction Emp* Total Board * G&A does not include costs related to these employees 25

26 Backlog Income 2Q06 2Q07 BL Revenue BL Costs BL Profit. 43,0 99,6 25,4 52,5 17,6 47,2 26

27 Net Cash 2Q06 2Q07 Available Funds Gross Debt Net Cash 6,9 503,2 76,2 28,3-69,3 474,9 27

28 Chapter V Looking Ahead - Sustaining Continuous Growth & Profitability Drivers

29 Key Execution Capacities Challenges Financial Resources Financial capacity to keep up with cash needs to the business plan Team Origination, development and launch of vast amount of projects Land Bank Capacity to originate and secure land bank under competitive environment Permits and Approvals Timing to get all the approvals, mainly in connection with the Sao Paulo City market Regional Competition High competition regarding a specific line of project in one region Capacities IPO Proceeds in the amount of R$756MM Availability of funds to production and final client preapproved lines 8 commercial teams led by senior officers. Average of the R$ 160MM in VGV to be launched by each director in 2H07 Operational Partnerships Company has already secured land bank with potential sales exceeding 2007 and 2008 launches guidance Strategic land bank as a VGV cushion for the long run Only 28% of the short-term land bank located in the city of Sao Paulo, with approvals already in place or in line with management s forecasts Multisegmentation as advantages to face project line regional concentration and keep profitability Geographic dispersion 29

30 Disclaimer This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of InPar. These are merely projections and, as such, are based exclusively on the expectations of the Company s management concerning the future of the business. Such forward-looking statements depend substantially on changes in market conditions, project approvals, the performance of the Brazilian economy, the sector and the international markets, and are therefore subject to change without prior notice. 30