3q12 results conference call presentation
TRANSCRIPT
3Q12 and 9M12
Results
Investor Relations
Results
Rossi Mais Santos | Santos – SP
Disclaimer
This material is a presentation of general background information about Rossi Residencial S.A. (“Rossi”) as of the date of this presentation.Information contained herein has been summarized and does not purport to be complete. This presentation shall not be considered an advice ofinvestment by potential investors. This presentation is strictly confidential and may not be disclosed to any third person. There are norepresentations or warranties, express or implied, regarding the accuracy, fairness, or completeness of the information presented herein, which shallnot support any decision of investment.
This presentation contains statements and information that are forward-looking pursuant section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities and Exchange Act of 1934. Such forward-looking statements and information are only predictions and cannot assureRossi’s future performance. Investors have been cautioned that any such forward-looking statements and information are subject to many risks anduncertainties relating to the operations and business of Rossi and its subsidiaries. As a result of such risks and uncertainties, the actual results ofRossi and its subsidiaries may be materially different from any future result expressed or implied in the forward-looking statement or informationcontained herein.
Although Rossi believes that the expectations and assumptions reflected in the forward-looking statements and information are reasonable and havebeen based on data currently available to its officers and directors, Rossi cannot guarantee future results or events. Rossi does not assume the
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been based on data currently available to its officers and directors, Rossi cannot guarantee future results or events. Rossi does not assume thecommitment of update any of the forward-looking statement of information.
Securities may not be offered or sold in the United States unlesss they are registered or exempt from registration under the Securities Act of 1933,as amended. Any offering of securities to be made in the United States will be made by means of an offering memorandum that may be obtainedfrom the underwriters. Such offering memorandum will contain, or incorporate by reference, detailed information about Rossi and its subsidiaries,their business and financial results, as well as its financial statements.
This material is for distribution only to person who (i) have professional experience in matters relating to investments falling within Article 19 (5) ofthe Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”), (ii) are personsfalling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Financial Promotion Order, (iii) areoutside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated orcaused to be communicated (all such persons together being referred to as “relevant persons”). This material is directed only at relevant personsand must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this material relatesis available only to relevant persons and will be engaged in only with relevant persons.
This presentation does not constitute an offer, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither thispresentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
Opening Remarks
Operating Performance
Index
Leonardo Diniz
CEO
Rodrigo Martins
Sales Officer
Cássio Audi
CFO and IROFinancial Performance
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Operating
Performance
33
Performance
Rossi Ideal Flores da Cidade| Manaus – AM
Launches
R$ million
1.008 500
3.040
1.552 162
35
507
520
3Q11 3Q12 9M11 9M12
Launches | R$ million
Rossi Partners
1,170
-54%
535
3,547
2,072
-42%
63%
23%
14%
Convencional
Commercial
Low Income
17%
14%
13%
10%10%
9%
6%
6%
5%
4%1%
Amazonas
Distrito Federal
Rio de Janeiro
São Paulo (3 cities)
Rio Grande do Sul
São Paulo
Paraná
Minas Gerais
Ceará
Sergipe
Goiás
Pernambuco
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Breakdown by Segment (% Rossi) – 9M12 Breakdown by Region (% Rossi) – 9M12
Rossi Partners
Contracted Sales
R$ million
1,073 616
3,002 2,392 353
157
912
728
3Q11 3Q12 9M11 9M12
Contracted Sales| R$ million
Rossi Partners
1,426
-46%
774
3,914
3,120
-20%
49%
43%
8%
Conventional
Low Income
Commercial
16%
13%
11%
9%7%7%
7%
7%
5%
4%
3%1%
São Paulo (17 cities)Rio Grande do SulSão PauloSergipeRio de JaneiroParanáCearáAmazonasMinas GeraisDistrito FederalGoiásPernambucoMato Grosso do SulParáEspírito SantoBahia
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Breakdown by Segment (% Rossi) – 9M12 Breakdown by Region (% Rossi) – 9M12
Sales and Inventory
Sales Speed and Inventory
2,319
2,687 2,823
3,128 3,003
2,569
3,088
29% 29% 29%26%
22%
30%
20%
�Healthy leverage of Sales velocity(SOS) of 20% in the quarter;
�In-house brokerage Rossi Vendasrepresents 57% of gross sales (Rossi'sshare)
�70% of in house brokerage salescomes from inventory
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1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
57%
43%
Rossi VendasOthers
Rossi Sales – 9M12 Rossi Sales Breakdown – 9M12
70%
30%
Inventory Sales
Launches Sales
comes from inventory
43%
31%
26%
Rossi Residencial
Rossi urbanizadora
Disablement
Land Bank
Strategic Breakdown| % Rossi
R$19.6billion
�Land Bank diversified by income segment and focusing on metropolitan regions where Rossi has the leadership position;
�Land Bank for residential developments of R$8.4 billion
44%
28%
17%
8%3%
From R$ 200K to R$ 350K
Above R$ 500K
From R$ 350K to R$ 500K
Low income
Commercial
25%
16%
16%
16%
8%
7%
5%4%3%
Sergipe
São Paulo ( 6 cities)
São Paulo ( RMSP)
Rio Grande do Sul
Rio de Janeiro
Minas Gerais
Distrito Federal
Amazonas
Paraná 8RMSP – São Paulo Metropolitan Region
Income Segment Breakdown| Rossi Residencial
R$8.4billion
States Breakdown| Rossi Residencial
R$8.4billion
Financial
Performance
888
Performance
Rossi Multi Business| Rio de Janeiro - RJ
186162
536
650
-13%
21%
25% 22%
28%
27%
739 721
2,012
2,347
-2%
+17%
Financial HighlightsNet Revenues (R$ million) Gross Income (R$ million) and Gross Margin (%)
31%
32
19
86
133
3Q11 3Q12 9M11 9M12
55%
-42%
4% 6%
4%3%
102 115
273
482
3Q11 3Q12 9M11 9M12
13%
76%
13%
76%
21%14%
20%14%
3Q11 3Q12 9M11 9M12
25% 22%
3Q11 3Q12 9M11 9M12
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EBITDA (R$ million) and EBITDA Margin (%) Net Income (R$ million) and Net Margin (%)
2%
SG&A Expenses
G&A Expenses
76
69
56
63
48
Reduction of 37% �Commitment to improving the efficiencyand profitability.
�Administrative and selling expenses reducedby 37% compared to 3Q11.
�Annual rate of R$192 million in the 3Q12,reduction of 28% versus 2011.
3Q11 4Q11 1Q12 2Q12 3Q12
19%
15%
20%
15%
3Q11 3Q12 9M11 9M12
-5 p.p.-5 p.p.
SG&A Expenses (% of Revenue)
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Indebtness
106 118
194
115
167
143
224
266
165
235
586
818
1,310
815
1,344
1,052
1,417 1,510
894
1,177
Transferred to the Bank – 100% (R$ million) DebtDebt
R$ million 3Q12 2Q12 Var (%)
Short Term 1,486 1,650 -10%
Construction Financing 569 628 -9%
Working Capital 291 288 1%
Receivables Securitization¹ 401 512 -22%
Debentures 225 221 2%
Long Term 2,799 2,691 4%
Construction Financing 2,050 1,804 14%
Working Capital 99 137 -28%
Debentures 650 750 -13%
Total debt 4,285 4,341 -1%
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12
Transferring to Bank (R$ MM) Number of Contracts
Total debt 4,285 4,341 -1%
Cash and Cash Equivalents 1,093 1,259 -13%
Net Debt 3,192 3,082 4%
Net Debt / Shareholder´s Equity 153.2% 148.9% 4.3 p.p.
Net Debt / Shareholder´s Equity (-SFH)² 27.5% 31.4% -3.9 p.p.
Net Debt / Shareholder´s Equity
After Capital Increase (R$ 600 million)96.6%
¹ refer to credits arising from trade receivables from projects that have been completed and are inthe process of being released for assignment and transfer to the financial institutions that financedthe project.
² SFH – Brazilian Construction Financing
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Equipe de RI
Thank You!
IR TeamPhone: +55 (11) 4058-2502Phone: +55 (11) 4058-2502
Q&A
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