2Q07 Results Conference Call. August 16, 2007 I SÃO PAULO

Transcription

1 2Q07 Results Conference Call August 16, 2007 I SÃO PAULO

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

3 Schedule Part I Overview Part II Operational Performance Part III Financial Results 3

4 Part I - Overview Cesar Parizotto CEO

5 Overview São Paulo largest real estate company over the last 10 years (PSV, m 2 e units delivered - EMBRAESP), having delivered R$4.7 billion projects since its foundation. Integrated Business Model Know How in Multiple Segments Residential (from low income to high end) Commercial Tourism Land parceling National coverage and presence in 12 states in Brazil Land bank with an estimated PSV of R$11.2 billion 5

6 Inpar History Created by Alcides, Cesar and Marco Parizotto First project Middle Income Residential Introduction of the Real Estate Living in a Club development concept Build-to-suit 1 Low income Residencial 3 5 Star Hotel Commercial Buildings AAA Recovery of Launches Land bank expansion Acquisitions: Plarcon (RJ) and Rodes (CE) From 2 to 4 stars 1 High End Residential Offices Achieved the 2 nd position in São Paulo market Mixed-use 2 Low cost hotel Focus on liquidity creation Leverage reduction process IPO (R$ 756 million) R$ 11,2 billion in land bank 6

7 Proved Expertise In Large-scale Operations Largest real estate company in São Paulo, Brazil s largest market. (1) 13,595 units delivered in 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 Launch Value (2) (R$ million) PSV Launched PSV of delivered units Anticipated sales of development projects with PSV higher than R$ 600 mi Avg.: Avg.: PSV delivered until 2006: R$ 4.7 billion PSV launched until 2006 (3) : R$ 5.0 billion (1) Source: Laudo da 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) PSV launched untill

8 Residential Segment Track Record R$ 3.1 bi (62% of PSV 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 units R$ 211 mi 23 buildings units 8

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

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

11 Urban Development and Lots 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 ) 11

12 Initial Public Offering (IPO) Issuer Ticker Price range Price per share on IPO Total offered Inpar S.A. ( INPAR ) INPR3 / Bovespa - Novo Mercado R$14,50 to R$19,50 per ordinary share R$17,50 R$756 MM (100,0% primary) Global coordinator and Sole Bookrunner Leader Before IPO After IPO 51,752,309 Shares 94,952,309 Shares 12

13 2Q07 Highlights Operational: 9 projects launched in the quarter for PSV of R$ 280 million (R$ 250 millions InPar s interest). Contracted sales of R$ million in the quarter (R$ 87.1 million InPar's interest). Sales on launches (VSO) of 37.8%. Land bank of R$11.2 billion (R$3.5 billion in short term 2007/2008 and R$7.7 billion in strategic land-bank after 2009) National expansion: Short term land-bank segmentation: R$2,6 billion (74%) from out of São Paulo. Low income segment: Aproximately R$904 million from short term land-bank (26%) ,000 units - directed to projects for the low income segment Financial: Gross Margin reached 46.3% in 2Q07, compared to 21.5% in 2Q06. EBITDA margin of 21.2%, compared to 12.3% in 2Q06. Gross Margin to be recognized (REF) rose to 47.3%, compared to 40.8% in 2Q06. 13

14 Parte II Operational Performance Marco Parizotto e Antonio Henrique Commercial Vice-presidents

15 2Q07 Launches Launches 2Q07 State Segment PSV Total InPar Share PSV 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 * PSV calculation based on present value of yearly annual revenues, considering 12% rate p.a. Region Segment Low income Cidade de 15

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

17 2Q07 Launches Sports Garden Leste 208 units PSV: R$ 42 million Middle Versatille Condominium 135 units PSV: R$ 21 million Middle Viver Mooca 156 units PSV: R$ 19 million Economic Prime Medical Center - Itaim PSV: R$ 72 million 8,5 thousands m² of rental area Laboratórios Fleury will lease 1/3 Sales in 2008 Commercial 17

18 Contracted Sales Segment Contracted Sales (R$) Contracted Sales - InPar's Share (R$) 2Q07 2Q06 2Q07 2Q06 High 45,2 22,6 30,2 11,3 Mid-High 6,8 17,9 6,3 17,9 Middle 62,3 0,5 44,2 0,5 Low income 6,5-0,2 6,5-0,2 Commercial 0,0 0,1-0,1 0,1 Turism -0,1-0,6 0,0-0,6 TOTAL 120,7 40,2 87,1 29,0 * Relative to previously sold units Region Contracted Sales (R$) Contracted Sales - InPar's Share (R$) 2Q07 2Q06 2Q07 2Q06 São Paulo 13,5 17,7 13,5 17,7 Rio Grande do Sul 36,5 0,0 25,6 0,0 Espírito Santo 15,3 0,0 15,3 0,0 Maranhão 25,4 0,0 17,8 0,0 Rio de Janeiro 30,0 22,6 15,0 11,3 TOTAL 120,7 40,2 87,1 29,0 18

19 Short Term Land Bank (2007/2008) Region Strategic Land Bank 69% Land Bank R$ 11,2 bi R$ 7,7 bi R$ 3,5 bi Short term Land bank 31% (1) Segment PSV InPar # of Projects R$ 1,3 bi R$ 2,2 bi Low income R$904 million (26% of land bank) 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 19

20 Launches in 2H07 and VGV InPar R$ 1,3 bi R$ 2,2 bi Region 07 Region 08 Land Bank R$ 11,2 bi Strategic Land bank 69% R$ 7,7 bi R$ 3,5 bi Short term Land bank 31% (1) Segment 07 Segment 08 Low income Low income 20

21 Execution in the 2Q07 RJ Vice-Presidency # Proj. PSV RR AP Antonio Henrique Neves RJ, MG, ES and Northeast Ernesto Raposo NE and MG SP Vice-Presidency # Proj. AC PSV 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 MS SP MG RJ ES Gerson Bendilati Economic Enzo Riccetti SP State RS PR SC Partnership Economic Sérgio Pardal South, North and MW Rodrigo Chade Resorts and LotS Presence Partners Expertise and structure allow INPAR to cover the entire country, creating attractive business opportunities in less competitive markets 21

22 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 PSV: R$ 904 thousands Lagoa dos Ingleses Belo Horizonte Launch: 2º 2 half / 2008 Economic Total Area: 444,745 m² m PSV: R$ 879 mi (1) Source: IBGE Launch: 2º 2 half / 2007 Residential, Lots and Commercial Total Area: m² m PSV: 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) 22

23 Lagoa dos Ingleses 23

24 Lagoa dos Ingleses 24

25 Part III Financial Results Ricardo Perpetuo CFO and IRO

26 Main Financial Indicators Before IPO 26

27 General and Administrative Expenses Employees 2Q06 2Q07 Board Management Office emp. Construction Emp Total

28 Backlog Income 2Q06 2Q07 BL Revenue BL Costs BL Profit. 43,0 99,6 25,4 52,5 17,6 47,2 28

29 Net Cash 2Q06 2Q07 Available Funds Gross Debt Net Cash 6,9 503,2 76,2 28,3-69,3 474,9 29

30 Stock Performance INPR3 x IBOV Indicators Stock Price (R$) /6 13/6 19/6 25/6 29/6 5/7 12/7 18/7 24/7 30/7 3/8 9/8 VOLUME INPR3 IBOV Volume(thousands) Acum. Vol. High Low Source: Enfoque R$ 746 MM Source: PlaDin 30

31 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 merelyprojections 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. 31