3Q07 Results Conference Call. November 14 th 2007 I SÃO PAULO

Transcription

1 3Q07 Results Conference Call November 14 th 2007 I SÃO PAULO

2 Speakers Cesar Augusto R. Parizotto CEO Marco Antonio R. Parizotto Commercial Vice President Ricardo Perpetuo CFO and IRO José Alexandre Hamer Administrative Director 2

3 Agenda Part I Overview Part II 3Q07 and 9M07 Highlights Part III Operating Performance Part IV Financial Results 3

4 Part I Overview Cesar Parizotto CEO

5 Overview Multi-segmentation Low Income and Middle Segment: 57% of the short term landbank Tourism: 2 launches in the 4Q07 Commercial: 2 nd launch in the 3Q07 National Presence 38 cities 14 states + DF 78% of the landbank outside São Paulo city Landbank: R$ 12.2 bi R$ 4.0 bi Short-term (4Q07 and 2008) R$ 8.2 bi Strategic Management 8 Commercial Directors 9 Regional Partnerships 5

6 Part II 3Q07 and 9M07 Highlights Cesar Parizotto CEO

7 3Q07 and 9M07 Highlights Operational: 8 projects launched in the quarter with a VGV of R$ 432 million (InPar s share: R$ 381 million) and 17 projects launched in the 9M07 with a VGV of R$ 719 million (InPar s share: R$ 636 million) Total pre-sales of R$ million in the quarter (InPar s share: R$ 89.8 million), and R$ million in the 9M07 (InPar s share: R$ Million) In 2007, our first launch took place in May, just before the IPO. By the end of September, our pre-sales have achieved 39.7% of the total VGV launched Short-term landbank of R$12.2 billion (R$ 4.0 billion short-term 4Q07 / 2008 and R$ 8.2 billion of strategic landbank starting in 2009) New Partnerships: Tibério, Record and MRM National expansion: Short-term landbank geographic segmentation: R$2.6 billion (78%) outside São Paulo city Operation in 38 cities located in 14 states and in the Federal District Low Income segment: From short-term land-bank, R$985 million (24.3%) approximately 10,000 units - targeted to Low Income segment Financial: Gross margin totaled 38.2% in the 3Q07 and 40.4% in the 9M07 EBITDA margin was 8.0% in the 3Q07 and 17.4% in the 9M07 Gross margin to be recognized (REF) was 44.3% 7

8 Part III - Operational Performance Marco Parizotto Commercial VP

9 3Q07 Launches Region Segment Goiás 17% São Paulo 20% Commercial Comercial 6% Econômico Low Income 28% Distrito Federal 25% Minas Gerais 38% Médio Mid High Alto 44% Médio Middle 22% Launches 3Q07 State Segment VGV Total InPar Share VGV InPar Units Launch Date (R$ million) % (R$ million) 1 Viver Morumbi SP Médio % /12 2 Mirante do Sol MG Médio Alto % /22 3 Viver Jardim Independência SP Econômico % /29 4 Wish Moema SP Médio Alto % /29 5 Vive La Vie DF Médio 75 70% /29 6 Quê Park Center * DF Commercial 33 70% /29 7 Wave Residence DF Médio 37 50% /29 8 Viver Fama GO Econômico % /29 3Q ,949 * VGV calculation based on present value of yearly annual revenues, considering 12% rate p.a. 9

10 3Q07 Launches Médio Middle Middle Médio High Alto Econômico Low Income Middle Mirante do Sol - MG 290 units VGV: R$ 146 million Médio Viver Morumbi - SP 60 units VGV: R$ 12 million Econômico Low Income Viver Jardim Independência - SP 344 units VGV: R$ 41 million Médio Middle Alto High Médio Wave Residence - DF 244 units VGV: R$ 19 million Middle Wish Moema - SP 38 units VGV: R$ 23 million Quê Park Center - DF Comnercial 67 stores VGV: R$ 23 million Viver Fama - GO 528 residential units + 42 stores VGV: R$ 64 million Vive la Vie - DF 336 residential units + shopping VGV: R$ 74 million Médio 10

11 Pre-Sales Launches 3Q07 Pre-Sales by segment Pre-Sales by location 358 (R$ million) 358 (R$ million) /30/ /30/ Launches 3Q07 * 15% Pre-sales of 3Q07 Launches Mid High Middle Low Income 53 15% Launches 3Q07 * Pre-sales of 3Q07 Launches São Paulo Minas Gerais Distrito Federal Goiás 53 * Excluding Quê Park Center (R$ 23 million) 11

12 Pre-Sales Launches 2Q07 Pre-Sales by segment Pre-Sales by location 19 (R$ million) (R$ million) /30/ /30/ % 53% Launches 2Q07 * Pre-Sales of 2Q07 Launches Launches 2Q07 * Pre-Sales of 2Q07 Launches High Middle High Middle Low Income São Paulo Espírito Santo Maranhão Rio Grande do Sul * Not including Medical Center (R$72 million) 12

13 Short-term Land-bank (4Q07 / 2008) Noth / M iddle North East/ Middle West 13% 13% Region SP City 22% No rtheast 10 % 9M07 4Q Short-term land-bank (1) R$ 4,0 bi South 16% Turism So utheast (ex- SP) 20% Commercial 4% Land parceling 2% SP State 19% Segment 7% High Low Income 6% 24% Landbank ## Projects de Projetos Guidance VGV R$0.6 bi * * Launched Landbank (InPar s share) R$1.1 R$ bi 1 R$1.7 bi bi R$2.9 bi R$1.5 bi R$2.2 bi Focus on the Low-income segment: R$ 985 million (24.3% landbank) in potential VGV, nearly 10 thousand units, positioning InPar as one of the largest on the segment Mid High 25% Middle 32% (1) Shor-term landbank includes 2008 and 4Q07 launchings 13

14 Short-term Land-bank (4Q07 / 2008) Excess landbank to reach the Guidance R$636 million launched in the 9M07 R$106 million launched in the 4Q07 until November 13th R$758 million to launch in the 4Q07 out of a total landbank of R$963 million 50 projects R$ 2.9 bi = 136% 41 projects R$ 1.7 bi = 114% GUIDANCE R$ 2,2 bi = 100% GUIDANCE R$ 1,5 bi = 100%

15 Short-term Execution (4Q07 / 2008) RJ Vice-Presidency # Proj. VGV RR AP Antonio Henrique Neves RJ, MG, ES and Northeast Ernesto Raposo NE and MG SP Vice-Presidency # Proj. AC VGV AM RO MT PA GO TO DF MA PI BA CE RN PB PE AL SE Flávio Neves MG, RJ and ES Marco Parizotto South, North, Middle West and SP 61 3,324 MS SP MG RJ ES Gerson Bendilati Low Income Enzo Riccetti SP State ,162 RS PR SC Partnership Low Income Sérgio Pardal South, North and MW Rodrigo Chade Resorts, Commercial and Land Parceling Presence Partners Expertise and structure allow INPAR to cover the entire country, creating attractive business opportunities in less competitive markets with execution capacities 15

16 Partnerships Type InPar s Share Structure Region Segment Product 1 Meta Develop./Const. 70% Op. Agreement MA Residential Middle, Middle High and High 2 Santa Fé Develop./Const. 70% Op. Agreement RS Residential Middle 3 CFL Develop./Const. 70% Op. Agreement RS e SC Residential Middle High and High 4 Quebec New businesses 95% Op. Agreement RS Residential Low Income 5 RioVix Development 90% Op. Agreement ES e RJ Residential Middle and High 6 Zappi Construction 100% Op. Agreement Countrywide Residential Low Income 7 Tibério Develop./Const. 70% Joint Venture SP, RJ e ES Residential Low Income, Middle, Middle High and High 8 70% Op. Agreement AL e RN Residential/ Record Develop./Const. Tourism Middle, Middle High and High 9 MRM 70% Op. Agreement BA Residential Middle, Middle High Develop./Const. and High

17 Strategic Land Bank Pedreira - Vitória Short term Land bank 33% R$ 4.0 bi R$ 8.2 bi Strategic land bank 67% Land bank R$ 12,2 bi Raposão São Paulo São Paulo Minas Gerais Espírito Santo Launch: 1º 1 half / 2009 Middle Total Area: m² m VGV: R$ 904 thousands Lagoa dos Ingleses Belo Horizonte Launch: 2º 2 half / 2008 Low Income and Middle Total Area: 444,745 m² m VGV: R$ 879 mi (1) Source: IBGE First Launch: 2º 2 half / 2007 Residential, Lots and Commercial Total Area: m² m VGV: R$ 5.8 bi 17

18 Strategic Land Bank: Annual Contribution Participation < 20% of Special Projects on the VGV launched yearly R$ 2.9 bi = 136% GUIDANCE R$ 2.2 bi = 100% R$ 1.7 bi = 114% GUIDANCE R$ 1.5 bi = 100% 84% 81% 19% Lagoa dos Ingleses 10% 6% Lagoa dos Ingleses and Raposão

19 Lagoa dos Ingleses Localization Master Plan Projects of 2H07 4Q07 3Q07 VGV already defined 2H R$ 281 MM R$ 190 MM Potential VGV R$ 281 MM ~ R$ 300 MM 19

20 Part IV 3Q07 Financial Results Ricardo Perpetuo CFO and IRO

21 Main Financial Indicators Net Revenue (R$ million) Gross Profit (R$ million) and Gross Margin (%) 25.1% % % % 3Q06 pro forma 3Q07 9M06 pro forma 9M07 3Q06 pro forma 3Q07 9M06 pro forma 9M07 EBITDA (R$ million) and EBITDA Margin (%) Net Income (R$ million) 16.1% 17.5% 11,8 30.1% ,8 3Q06 pro forma 9M06 pro forma Q07* 9M07** % 3-10,2 3Q06 pro forma 3Q07 9M06 pro forma 9M07-15,0 Adding R$1,45 million provision for IPO expenses. ** Excluding IPO expenses.

22 General and Administrative Expenses G&A (R$ million) 3.0% VGV launched Personnel Q06 3Q07 2.1% VGV launched Board Management Office personnel Construction Emp Q06 pro forma 3Q07 9M06 pro forma 9M07 Total

23 Backlog Income Backlog gross income (R$ million) and Backlog margin (%) 44.3% 42.0% 66,3 3Q06 3Q07 BL Revenue BL Costs BL Profit Q06 pro forma 3Q07 23

24 Net Cash Net Cash (R$ millon) 355,8 3Q06 3Q07 3Q06 pro forma Available Funds Gross Debt Net Cash ,4 3Q07 24

25 Disclaimer This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financialresults, 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. 25