3Q09 Earnings

Management Discussion

November 16, 2009

1

Disclaimer

This presentation contains certain statements that are neither reported financial results or other historical information. They are forward-looking statements.

Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Rodobens’ ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators, the Company's ability to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, inflation and consumer confidence, on a global, regional or national basis.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Rodobens does not undertake any obligation to publicly release any revisions to these forward looking statements to reflect events or circumstances after the date of this presentation.

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Eduardo Gorayeb

CEO

Luciano Guagliardi

CFO and Investor Relations Officer

Speakers

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Agenda

• Business environment in the 3Q09

• Operating highlights

• Financial highlights

• Actions for 4Q09 and 2010

Business Environment in the 3Q09

Positive aspects

� Minha Casa Minha Vida Housing Plan

� 115k mortgages granted within the plan until the end of October

� Adjustment of maximum unit sales price benefited Rodobens in 16 cities

� Large volume of construction work delivered

Concerning aspects

� CEF – Transfer of clients’ balances and senior loan construction: still being

executed out of stipulated deadlines

� Banco Real - Credit assessment through payment “Behavior”: resuming at a

slow pace after interruption.

� SAP Go-live in July 1st

Strategic actions

�Cash management orientation

�Adjustment of the company’s operations to senior loan agreements

� Reduction of inventory levels

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5

Discussion on Strategic Actions

Decision of the Board of Directors executed by the Management

� Start the construction work of projects only after senior loan agreements

� Avoid the risk in our business: obligation to build without ensured funding

� Cash exposure: avoid unnecessary levels of indebtedness

�No impact on homebuyer/sales: adjustment on sales agreement contemplating delivery

date after 12 months of the senior loan closing

� Take advantage of the favorable market conditions: Operational records

3Q09 Operating Highlights

Launches

Record in units launched: 3,011 units

Total PSV 9M09 R$567MM

Reduction of the average unit sales price of launches:

R$73,000

Significant increase of MORADAS product (43% of

launched)

50.2% of the launched units were sold in the same

quarter

23 projects submitted to CEF under final analysis

resulting in 13,000 units with RNI PSV of ~ R$1 billion

Sales Contracts (agreements signed)

Record in units sold: 2,429 units net

Total PSV R$208MM

+48% vs. 3Q08 e +8% vs. 2Q09

Sales/launches: 84%

Sales over Supply (quarterly SOS): 24%

Sales of inventory/Total sales: 45%

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PSV Launched – Rodobens’ share (R$ MM)PSV Launched – Rodobens’ share (R$ MM)

10

9134 37

153

10338

82

30

26

79

20

3Q08 4Q08 1Q09 2Q09 3Q09

Moradas Terra Nova Sistema Fácil

129 126

67

199182

Sales Contracts – Rodobens’ share (R$ MM)Sales Contracts – Rodobens’ share (R$ MM)

5 556

8246 50

115

862143 35

2110

3Q08 4Q08 1Q09 2Q09 3Q09

Moradas Terra Nova Sistema Fácil

10389 90

141152

77

Breakdown of 3Q09 Project Launches and Sales Contracts (Rodobens’ share)

Project Launches - by LOCATIONProject Launches - by LOCATION Project Launches – by PRICE and TYPEProject Launches – by PRICE and TYPE

Sales Contracts in Value - by LOCATIONSales Contracts in Value - by LOCATION Sales in Value - by PRICE and TYPESales in Value - by PRICE and TYPE

Other states

53%

São Paulo city1%

São Paulo suburb

7%

SP state ex-metro

39%

Up to R$ 80k37%

up to R$150k

Horizontal43%

up to R$150k Vertical

13%

>R$150k Vertical

4%

>R$150k Horizontal

3%

Other states

66%SP state ex-

metro34%

up to R$80k43%

up to R$150k

Horizontal57%

Completion of Construction Work

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In the 9M09 the completion of construction

work totaled R$535MM in PSV and 4,614

units, which Rodobens’ share of the PSV is

R$414MM

Significant increase in delivery of construction

work in the 2H09

Completion of Construction work – Rodobens’ PSV (R$ MM)Completion of Construction work – Rodobens’ PSV (R$ MM)

10

113

46

8

108

57

312

2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09E

P roje ct n am eTo ta l P SV % R N I

R N I's PS V Typ e

N u m b er o f u n its

A vg . pr ice p e r u nit (R $ 00 0 )

G ard e n C lub - C am pin a s/S P (2n d P ha se ) 1 3 5 5% 7 Ap a r t. 6 8 24 0

Te rra N o va V árze a G ra n d e/ M T (1 st Ph a se ) 2 9 1 0 0% 29 H o use 3 4 8 8 3

G ua ra pira n ga P a rk - S ã o Pa u lo/ SP (2 n d Ph a se ) 2 5 1 0 0% 25 Ap a r t. 2 2 2 11 2

Te rra N o va S oro ca ba /S P (1 st Ph a se ) 3 5 1 0 0% 34 H o use 3 9 0 8 9

Te rra N o va M a rí lia/ SP (1 st Ph a se A ) 1 1 1 0 0% 11 H o use 1 2 2 8 8

Te rra N o va R o nd o nó p o lis /M T (1 st P ha se A ) 1 2 1 0 0% 12 H o use 1 4 4 8 1

Te rra N o va R o nd o nó p o lis /M T (1 st P ha se B ) 9 1 0 0% 9 H o use 1 1 2 8 1

Te rra N o va C a sca ve l/P R 3 7 1 0 0% 37 H o use 4 0 2 9 1

Te rra N o va P on ta G ros sa /P R (1 st Ph a se A ) 1 2 1 0 0% 12 H o use 1 4 0 8 3

Te rra N o va P arq ue d a L ib erd ad e 2 - S . J. R io P re to /S P (2 nd P h as e) 1 7 5 0% 8 H o use 2 2 8 7 3

Te rra N o va S oro ca ba /S P (2 nd P h as e) 3 3 1 0 0% 33 H o use 3 7 8 8 7

Te rra N o va P alh o ça /S C (VI L A I) 2 6 8 5% 22 H o use 3 2 6 8 0

Te rra N o va P at os d e M ina s/ M G (1 st P ha se ) 1 1 1 0 0% 11 H o use 1 3 6 8 3

G ree n F ie lds - S . J. R io Pre to (2 nd P h as e) 1 1 1 0 0% 11 Ap a r t. 2 8 37 9

G ua ra pira n ga P a rk - S ã o Pa u lo/ SP (3 rd Ph a se ) 2 1 1 0 0% 21 Ap a r t. 1 4 8 13 9

Te rra N o va S ão C a r lo s/S P (1s t P h as e) 1 8 1 0 0% 18 H o use 1 7 2 10 3

Te rra N o va S ão C a r lo s/S P (1s t P h as e B) 3 1 0 0% 3 C a sa 3 2 8 5

G ree n Ta m b oré - S a nt a na d o P arn a íb a/ SP (2 n d Ph a se ) 3 0 3 4% 10 Ap a r t. 1 2 6 23 6

To ta l 3T 09 R $ 35 0 8 9% R $ 3 1 2 3 ,5 2 2 R $ 9 9

Construction w ork completed in 3Q 09 (P ot ential S ale s Value (PS V) in m il l ions of Bra zi lia n Rea is (R$MM) )

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Selected Projects

Terra Nova Uberlândia - MG Terra Nova Uberlândia - MG

Moradas Itapetininga- SP Moradas Itapetininga- SP Terra Nova Santa Maria - RSTerra Nova Santa Maria - RS

Terra Nova Uberaba - MGTerra Nova Uberaba - MG

Net Earnings (R$MM) and Gross MarginNet Earnings (R$MM) and Gross Margin EBITDA (R$MM) and EBITDA MarginEBITDA (R$MM) and EBITDA Margin

Net Income (R$MM) and Net MarginNet Income (R$MM) and Net Margin

Financial Highlights*

*Audited results, presented according to the new accounting practices introduced by federal law 11,638 and CVM instruction #561 and adopted by the company since 4Q08.

143

86

28.5%26.3%

2Q09 3Q09

23

10

11.7%

16.1%

2Q09 3Q09

15

2 2.6%

10.3%

2Q09 3Q09

-40%

-85%

-56%

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Discussion on Net Revenues

Slower pace of construction work

Launched projects (sold, but construction work not initiated) waiting for senior loan

Large volume of construction work delivered

Less execution realized for reaching 100% of completion

Growth on sales cancelations due to banks’ inefficiency in the process of

client balance transference

TN Cascavel, TN Rondonópolis, TN Sorocaba and Bosque Vivendas

Accounting effect of R$14MM

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Revenues and Result to Be Appropriated

178 158188

439 417

517

40%

36%38%

3Q08 2Q09 3Q09

Result Revenues

Revenues, result and margins to be appropriated (R$ million) Revenues, result and margins to be appropriated (R$ million)

� The Company continues it’s strong operational expansion

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Income Statement

*3Q08 results, in conformity to new accounting practices introduced by Law 11,638 as of 12/28/2007 and Instruction CVM #561 (Recommendation O-CPC-01) as of 12/17/2008. The company has opted to present, as part of the 2Q09 audited financial statements, the 2Q08 results also adjusted to the new accounting practices in order to allow for comparability between the two quarterly periods in the same base.

Consolidated, in R$000 3Q09 2Q09 %Chg 3Q08* %Chg 9M09 9M08 * %Chg

Net Operating Revenue 86,325 142,872 -40% 113,064 -24% 333,356 289,463 15%Gross M argin 28.5% 26.3% 2.2 p.p. 39.3% -10.8 p.p. 28.2% 36.2% -8 p.p.

Commercial Expenses (6,258) (10,764) -42% (8,454) -26% (26,621) (26,453) 1%

-7.2% -7.5% 0.3 p.p. -7.5% 0.2 p.p. -8.0% -9.1% 1.2 p.p.

General and Administrative Expenses (14,765) (10,823) 36% (11,494) 28% (36,488) (27,769) 31%

-17.1% -7.6% -9.5 p.p. -10.2% -6.9 p.p. -10.9% -9.6% -1.4 p.p.

Other Operating Revenue 1,075 1,348 -20% 2,525 -57% 3,844 5,886 -35%

1.2% 0.9% 0.3 p.p. 2.2% -1 p.p. 1.2% 2.0% -0.9 p.p.

Equity Pick-Up from Investments 744 545 37% 696 7% 1,956 2,052 -5%

EBITDA 10,078 23,025 -56% 30,757 -67% 51,040 65,541 -22%EBITDA M argin 11.7% 16.1% -4 .4 p.p. 27.2% -15.5 p.p. 15.3% 22.6% -7 .3 p.p.

Net Financial Income (Expenses) 544 1,690 -68% 5,066 -89% 2,986 18,146 -84%

Income Taxes (3,627) (4,834) -25% (4,264) -15% (12,069) (12,517) -4%

Minority Interest 3 (3) (21) (7) (45)

Net Income 2,277 14,768 -85% 28,509 -92% 27,482 64,229 -57%Net M argin 2.6% 10.3% -7 .7 p.p. 25.2% -22.6 p.p. 8.2% 22.2% -13.9 p.p.

Earnings per Share (in R$) 0.05 0.30 0.59 0.57 1.32

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Balance Sheet (in R$ million)

September 30, 2009

Others 222

Shrholders'

Equity 629 Land 137

Inventory 270

Clients in

progress 425Others 179

Clients perform

237

Banks SFH 256

Leasing 18

Cash 48

Assets Liabilities

Intercompany loan 94

Land Payables 91

Working capital 72

Cash

Transfer of client balances to banks: R$26MM sold

to CEF and Real

Maintenance of intercompany loan with controlling

shareholder: R$94MM

Working capital credit line with HSBC, Banco do

Brasil and CEF outstanding: R$72MM

Client receivables

R$237MM from completed units, mostly under

process of transfer of balances to banks

R$425MM of work-in-progress

And more R$517MM pending recognition by the PoC

method

Total receivables R$1,180MM

Inventory

Estimated value of inventory priced to market

R$472MM

R$137MM undeveloped land booked at historical

acquisition cost

1515

Bank Debt

Outstanding Balance SFH (R$MM) and weighted avg interest rate (% p.a. + TR)Outstanding Balance SFH (R$MM) and weighted avg interest rate (% p.a. + TR)

189220 233

256

144

10.7%10.5%

10.3% 10.3% 10.3%

3Q08 4Q08 1Q09 2Q09 3Q09

Senior loan (SFH) – Total contract amount: R$935MM (Rodobens’ share

R$617MM)

Future disbursements: R$368MM (Rodobens’ share R$228MM)

Leasing: R$18MM

Working capital credit line: R$72MM

Net Debt: R$297MM (47% of Shareholder’s equity)

Considering intercompany loan with controlling shareholder: R$392MM

(62% of Sharehoder’s equity)

No exposure to derivatives or FX.

Actions for 4Q09 and 2010

�Cash management orientation

�Ensure senior loan finance (Plano Empresário)

�Reduction of construction work period (cycle) from 12 to 7 months

�Reduction of inventory levels

�Transfer of client balances to banks

�Less capital needs in the future

� Less cash exposure of projects

� Decrease of debt

�Support for growth in 2010

� Equalize the current situation

� Preserve shareholders

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Investor Relations Contact

Luciano Guagliardi

CFO and Investor Relations Officer

Tel.: +55 17 2137-1752/4

lguagliardi@rodobens.com.br

Investor Relations website:

www.rodobens.com/negociosimobiliarios/ir