apresentação da cia en agosto2010€¦ · r$ 169 bn prescribed use (r$ billion) actual use (r$...
Post on 02-Aug-2020
1 Views
Preview:
TRANSCRIPT
Company PresentationAugust 2010
Privilege Exclusive HousesPorto Alegre - RS
Contents
Brazilian Real Estate Sector Overview
Company Overview
Outlook for the Future
Operating Results
Company Overview
Living – Economic and Super Economic segments
Financial Results
Appendix
Jardim de ProvenceSão Luis - MALaunched in June 2010
BrazilianReal EstateReal Estate
Sector Overview
The Brazilian real estate market is posed to benefit from a favorable environment
A Booming Real Estate Market: Strong Fundamentals
The Brazilian real estate market is posed to benefit from a favorable environmentLow Supply of UnitsLow Supply of UnitsHigh Demand for HousingHigh Demand for Housing
3. Rising Housing Deficit(1)
Expanding the market for housing (Millions of housing Units)1. Population and families
In millions PersonsYear
2007
2017E
2030E
Families
60.3
75.6
95.5
Population
189.1
211.2
233.6
Personsper family
3.1
2.8
2.4
5.46.7
5.6
(2)
4. Number of Home Moves per PersonLow number of home moves as compared to other countries
BrazilBrazil 1.8x1.8x
2. Monthly income evolution
2007 2030(E)
In millions of families Growth rate(%) per year
1991 2000 2008(2)
BrazilBrazil
MexicoMexico
G-7G-7
1.8x1.8x
4.0x4.0x
9-10x9-10x
up to R$ 1,000
from R$ 1,000 to R$ 8,000
31.7
27.2
29.1
60.4
more than R$ 8,000
Total
1.460.3
5.995.5
-0.4%
3.9%
7.1%2.0%
4
Cyrela is uniquely positioned to take advantage of the positive Brazilian real estate environment
(1) Considers demand in excess of supply.(2) 2008: considering new methodology.Source: IBGE (Brazilian Institute of Geography and Statistics), Brazilian Central Bank, Ministry of Cities, Fundaçāo Pinheiro, FactSet, Bloomberg, Fundação Getulio Vargas and Wall Street Research.
20052005 20092009Housing Deficit (2008)Housing Deficit (2008)
Impact for Cyrela: The future is now
> R$ 4,8005.7 mm families10%
Monthly Income
Monthly Income
20052005 20092009Housing Deficit (2008)Housing Deficit (2008)
0.1 mm10 minimum
wages
Monthly Wages Housing Deficit
Incremental Demand (vs. 2005):+35.7 mm families
From R$1,200 to R$4,80022.4 mm families39%
> R$1,40041.4 mm families
67%
0.3 million
5 – 10
minimum
wages
3 - 5
~30 millionfamilies
< R$1,20029.3 mm families51%
< R$1,40020.4 mm families
33%
0.7 million
4.5 million
minimum
wages
< 3
minimum
wages
Minimum monthly family income to purchase a property
TR+14%10 years
familiesTR+5% (1)
30 years
Cyrela’s Lowest
Ticket perunit available
Cyrela’s Lowest
Ticket perunit available
R$ 80,000.00R$ 110,000.00
5.6 million
R$ 80,000.00
5
Cyrela’s addressable market increased from 10% to 67%of the Brazilian population in the past years
Source: IBGE (Brazilian Institute of Geography and Statistics), CBCI, GV Consult and Santander, MCM Consultores
unit availableunit available
(1) Within Minha Casa Minha Vida Program
Brazilian Saving Accounts and Mortgage System
65%
53%
Uses
Individual mortgages100%
SourcesUses
65%
Individual mortgages
and construction
g gProperties up to R$
500,000
Construction loansAverage loan up to R$
500,000
SavingsAccountsDeposits
Cost ofSaving Accounts
(R$ billion)loans
30%
12%Properties over R$ 500,000
, Cost of TR + 6.17% p.a.
Monthly averageor last 12
months average
19 %
(R$ billion)
256.6
30% Compulsory
Deposits
5%
months average(the lowest)
215.8
6
5% Free Usage
Jan/09 Jan/10
Source: Santander
Scenario Jan/2010 Mortgage
Funding Analysis (SBPE)
R$ 169 bn
Scenario Jan/2010
Prescribed Use(R$ billion)
Actual Use(R$ billion)
R$ 169 bn
Mortgage outstanding 2013
86Remaining)
$
With 40% of annual growth in mortgage and 10% in saving
accounts, the funding
R$ 169 bn
LCIs, LHs
R$ 230 bn
20
63
20Commitedloans
Mortgage outstanding
, gwill last for 4 years
Earmarked
resources149
Scenario Mortgageoutstanding
Savingoutstanding
Mortgageoutstanding
(R$ bn )Year
1 60% 20% 262 Jan-2013
7Source: Santander(1) FCVS, default and multipliers.
2 40% 10% 230 Nov-20133 40% 17% 331 Dec-20144 20% 0% 167 May-2015
Real Estate Industry and the Economic CycleBrazilian National Construction Cost Index (INCC): Brazilian National Construction Cost Index (INCC): Nominal Average Income vs. Cost ConstructionNominal Average Income vs. Cost Construction( )
Materials vs. Labor( )
Materials vs. Laborgg
12.0%
14.0%
16.0%
160
180
-2 0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
100
120
140
2.0%
2008 2009 2010* 2011* 2012*
INCC Materials Labor
80Jan/05 Aug/05 Mar/06 Oct/06 May/07 Dec/07 Jul/08 Feb/09 Sep/09 Apr/10
Nominal Average Income Accumulated by INCC Labor*2010, 2011 E 2012 prospect numbers
During the 2005-2009 period, 722,000 new hires were registered in the Real Estate Industry
During the first half of 2010, 230,000 net hires were added to that figure
Average income of R$ 699.90 in January 2005 moved up to R$ 1,227.40 at the close of June 2010,
8
Average income of R$ 699.90 in January 2005 moved up to R$ 1,227.40 at the close of June 2010,
a nominal rise of 75%
Source: MCM Consultores
Housing Units Price
New Housing Units Prices – São Paulo MetropolitanNew Housing Units Prices – São Paulo Metropolitan Sales/Supply - Residential Real Estate – SPMRSales/Supply - Residential Real Estate – SPMRNew Housing Units Prices São Paulo Metropolitan Region (SPMR)
New Housing Units Prices São Paulo Metropolitan Region (SPMR)
Sales/Supply Residential Real Estate SPMRSales/Supply Residential Real Estate SPMR
202224
Sales / Supply- 12 month average(%)
175
200 New Housing Units PriceNov/2003=100
68
1012141618
Oct-04 Jun-05 Feb-06 Oct-06 Jun-07 Feb-08 Oct-08 Jun-09 Feb-10
75
100
125
150
Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09
Source: SECOVI-SP Latest data: May 2010
Real Price Variation vs. Real Average Income – SPMRReal Price Variation vs. Real Average Income – SPMR
20%25%
Quartely moving average New Housing Units Prices
Oct-04 Jun-05 Feb-06 Oct-06 Jun-07 Feb-08 Oct-08 Jun-09 Feb-10Nov 03 Nov 04 Nov 05 Nov 06 Nov 07 Nov 08 Nov 09
Housing Units Price Variation - SPMR
1 bdrm 2 bdrm 3 bdrm 3+ bdrm Real Monthly Income SPMR
Average Total Price
-15%-10%
-5%0%5%
10%15%20%
5 6 7 8 9 0
2005 1.5% 13.3% -19.8% 0.7% -4.3% 1.2%
2006 -10,0% -28.2% -8.4% -1.9% -12.7% 5.1%
2007 -0.4% 27.7% -0.6% -4,00% -1.2% 1.8%
2008 -2.2% 1.8% 1.1% 11,00% -3,00% 2.4%
2009 -3.5% 1.4% 11.6% -5.5% 6.4% 3.2%
Income SPMRVariation
9Note: percentage in relation to the average price in each periodSource: MCM Consultores
2005
2006
2007
2008
2009
Jan-
May
/ 201
0
Accu
mul
ated
Average Total Price Variation (YoY) Real Average Income SPMR
Jan-May/10 18.7% 26.6% 32.9% 31.6% 3,00% -0.2%
Accumulated 1.9% 35.8% 9.4% 30.8% -12.2% 14.2%
Mortgage Loans Funding (R$ bn)Mortgage Loans Funding (R$ bn)Perspective of Real Income GrowthPerspective of Real Income Growth
Cyrela: ready for growth
Mortgage Loans Funding (R$ bn)Mortgage Loans Funding (R$ bn)Perspective of Real Income GrowthPerspective of Real Income Growth
GDP growth p.a.
-3% 0% 3% 5% 7%10.5
25 2
40.651.0
17.0
68.0
18.0
3% 0% 3% 5% 7%2008 3.4% 3.4% 3.4% 3.4% 3.4%2009 3.4% 3.4% 3.4% 3.4% 3.4%2010 0.5% 1.3% 2.1% 2.6% 2.8%2011 -1.7% 0.3% 2.2% 3.5% 4.2%2012 -2.2% 0.1% 2.3% 3.8% 4.5% 1.9 1.9 1.8 2.2 3.0 4.9 9.3
18.330.0 34.0
3.3 2.7 3 2.8 3.95.5
7.0
6.9
5.2 4.6 4.8 5.0 6.910.4
16.3
25.2
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
50.0
2010e
SBPE FGTSSource: CEF and AbecipSource: MCM Consultores
Evolution of Economic Classes (% Brazilian population and millions of inhabitants)Evolution of Economic Classes (% Brazilian population and millions of inhabitants)
46
93
2011%
49%
24% 40
113
3116%
56%
20% Lower middle income class (D)Middle income class (C)High and Upper Middle income class (A/B)
8%
37%
27% 47
66
13
10Source: IBGE, FGV and LCA
30
4624%
16% 16
4020%
8%
Low income class (E)Lower middle income class (D)27%
28% 49
47
2003 2008 2014
0.6% p.a. -0.02% p.a.Millions of inhabitants
Brazilian population - estimates
1.9% p.a.
% pMillions of inhabitants
9.312.8
19.1 28.9 38.448.9
118 6
171.3 191.5
207.1 216.4 219.1 215.3
68.5
111.0 128.8 146.4 150.8 148.0138.1
4.8
118.6
45.3 51.0 49.9 41.6 36.8 32.6 28.3
1980 2000 2009 2020 2030 2040 2050
0 - 14 years old 15 - 64 years old 65 years old or moreSource: IBGE
Population (millions of inhabitants)
2009 2030Growth rate
(%)Australia 22 24 0.4%
11
Australia 22 24 0.4%Canada 34 40 0.8%
New Zealand 4 5 0.8%Brazil 194 216 0.5%
Source: IBGE , UN
Previlege Exclusive housesPorto Alegre - RSLaunched in June 2010
Visão GeralVisão Geral da Empresa
Units DeliveredUnits Delivered
Prospects of strong growth with unique track record
ForecastedHistorical (until 2009)
7 661
17,000 – 21,00050 years of history
15 diff t i d d t7,510
2,211 3,178
7,661
2007 2008 2009 2010eConstructed Area per YearConstructed Area per Year
15 different independent
construction platforms in 66 cities
Private area in thousands of sq.m.
ForecastedHistorical
Constructed Area per YearConstructed Area per Year
Around 8,000
372594
1,002
1,6552,186
More than100
Around 8,000employees
13Source: Company data
232 372
2005 2006 2007 2008 2009 2010e
thousand costumers
Outstanding track-record with unique positioning to capture growth opportunities
Presence in 66 cities in 16 states of Brazil, Buenos Aires in Argentina and Montevideo in Uruguay
Geographical Expansion
Presence in 66 cities in 16 states of Brazil, Buenos Aires in Argentina and Montevideo in UruguayLiving is present in 47 cities and 12 states
200920092006200620052005
MG
GO
MT
AC
AM
RR
ROBA
PI
MAPA
AP
TO
CERN
PE
ALSE
S ES
DF
PB
MG
GO
MT
AC
AM
RR
ROBA
PI
MAPA
AP
TO
CERN
PE
ALSE
S ES
DF
PB
MG
GO
MT
AC
AM
RR
ROBA
PI
MAPA
AP
TO
CERN
PE
ALSE
S ES
DF
PB
RS
SC
PR
SP
MS
RJ
ES
BuenosAires
RS
SC
PR
SP
MS
RJ
ES
RS
SC
PR
SP
MS
RJ
ES
+ +
14
% ofBrazilian
GDP Covered
% ofBrazilian
GDP Covered
(1) Considers 2007 data, most recent.Source: Company and IBGE.
90.5%(1)80.5% 47.9%
Cyrela Brazil Realty
2005 20072006 2008 2009
Launches
Pre-sales
2005
R$ 1.2 bn
R$ 1.0 bn
2007
R$ 5.4 bn
R$ 4.4 bn
2006
R$ 2.9 bn
R$ 1.9 bn
2008
R$ 5.5 bn
R$ 5.1 bn
2009
R$ 5.7 bn
R$ 5.2 bn
Landbank
Low income units launched
Gross Margin*
3.0 mm sq.m.
0
48.5%
8.8 mm sq.m.
6.7 thd
41.2%
4.9 mm sq.m.
720
42.2%
11.2 mm sq.m.
11.1 thd
12.6 mm sq.m.
16.1 thd
38.0% 34.5%
# Homebuilders listed
EBITDA Margin*
Net Margin*
2
27.1%
23.2%
21
22.9%
24.7%
4
22.3%
21.7%
20 18
16.5%
9.8%
22.3%
17.8%
Number of cities
Market Cap Cyrela**Market Cap of the Industry
3
R$ 2.4 bn
R$ 6.0 bn
47
R$ 8.6 bn
R$ 48.1 bn
8
R$ 4.5 bn
R$ 10.0 bn
55
R$ 3.3 bn
R$ 13.4 bn
66
R$ 10.4 bn
R$ 51.6 bn
15
1,265
946
*Adjusted for IPO expenses and according to BR GAAP before Law 11,638 until 2007.
EmployeesSeller Brokers & Team
202
100
529
743
327
200
514
637
** On December 31, of each year.
Stock Market – CYRE3
Ownership Breakdown Stock Performance*Ownership Breakdown(August 2010)
Stock Performance
200
250
300
350
400
Others53.1%
Black Rock Inc.5.3%
-
50
100
150
200
Sep
-05
Nov-
05Ja
n-06
Mar
-06
May
-06
Jul-0
6
Sep
-06
Nov-
06Ja
n-07
Mar
-07
May
-07
Jul-0
7
Sep
-07
Nov-
07Ja
n-08
Mar
-08
May
-08
Jul-0
8S
ep-0
8No
v-08
Jan-
09M
ar-0
9M
ay-0
9Ju
l-09
Sep
-09
Nov-
09Ja
n-10
Mar
-10
May
-10
Carmignac Gestion
7.8%
Free Float: 66.0%
* Adjusted data by paid dividends
S N J M M S N J M M S N J M M S N J M M S N J M M
Cyrela Ibovespa
Controlling Group33.8%
Paid Dividends
Payment date Action CYRE3 Dividend yield(R$/share) 154% growth in
16
(R$/share)5/11/2010 (-) Paid dividend 0.4703 2.24%5/11/2009 (-) Paid dividend 0.1854 0.87%5/16/2008 (-) Paid dividend 0.0410 0.19%9/25/2007 (-) Paid dividend 0.1687 0.80%5/10/2007 (-) Paid dividend 0.0852 0.40%
154% growth in the last year
Escritório MoocaSão Paulo - SPLaunched in May 2010
Outlook for the Future:Cyrela’s
Revised Plan
Guidance 2010 - 2012Xxxx
Launches and Sales for 2010 - 2012
Guidance 2010 2011 2012
Launches (R$ billion)
6.9 to 7.7 8.3 to 9.1 10.5 to 11.5
Sales (R$ billion)
6.2 to 6.9 7.6 to 8.4 9.7 to 10.7
Margins over net revenuefor 2010 - 2012
Living’s stake
% Cyrela 73% a 77% > 75% > 75%
for 2010 - 2012
2010 from 35% to 40%
% LivingGross margin 33% to 37%EBITDA margin 20% to 24%N t i 14% t 16%
18
2011 from 40% to 45%
2012 from 45% to 50%
Net margin 14% to 16%
Landbank Analysis – Acquisition of LandCyrela’s Landbank Maturity to Cyrela’s Landbank Maturity to Living’s Landbank Maturity Living’s Landbank Maturity y y
Launch (R$ million)y y
Launch (R$ million)g y
to Launch (100% stake - R$ million)1g y
to Launch (100% stake - R$ million)1
16.900
16,90011,500
2,900 3,274
4,085
5,409
5,750
809
7,7004,859
9,100
9,620
1,8072,400
1,807500
2009 2010E 2011E 2012E Post 2012
800
821 341
Mid-High Income Landbank Maturityto Launch (100% stake - R$ million)1
Mid-High Income Landbank Maturityto Launch (100% stake - R$ million)1
6,891
809
5,678
4,800
16,100
1 5855,005
4,211
5,750
5,678
2009 2010E 2011E 2012E Post 2012
4,241
1,8803,871
4,491
3093,8711,585
3,420
1,539
19(1) Potential PSV, 100%
Existing Landbank Incremental Purchases 2009 2010E 2011E 2012E Post 2012
Cyrela’s Investment Plan
Sources (R$ million)Sources (R$ million)Uses (R$ million)Uses (R$ million)
1,000850700
1,000
2,500
900
2,5001,000
2,5001,150
2,500
900
600
Working capital Cost of Cost of Total
300
350
Sale of Bond Follow on Other Total
300
350
600
20
Working capital Cost ofLandbank (Low
Income)
Cost ofLandbank (Mid-High Income)
Total Sale ofstake in
Agra
BondOffering
Follow-onOffering
OtherFinancing
Total
Mais São CristovãoRio de Janeiro - RJLaunched in November 2009
Cyrela and LivingOperating resultsOperating results
Q t l f l h d l til 2Q10
Launches and Sales Cyrela and Living
Quarterly pace of launches and sales until 2Q10
1H10 launches reached 24% of the 2010 launches guidance announced (mid range) and
sales reached 40%
Launches Sales
100% 100%
48%
60%
82%
100%
55%
24%40%50%60%70%80%90%
100%
49%
65%
88%
57%
100%
40%40%50%60%70%80%90%
100%
5% 18%
48%15%
9%
21%
8%0%
10%20%30%40%
1Q 2Q 3Q 4Q
2007 2008 2009 2010
9%25%
49%23%
10%
26%16%
0%10%20%30%40%
1Q 2Q 3Q 4Q
2007 2008 2009 2010
22
Cyrela and Living Operating Results Preview
15 j t l h d i 2Q10 d 30 j t d i th15 projects launched in 2Q10 and 30 projects during the year
6.0 thd units sold in 2Q10 and 10.7 sold in 1H10
56.1 % of total sold in 2Q10 is related to inventory sales
S l
5,144.2 5,241.1 5,393 5,453 5,679
Launches(R$ million)
Sales (R$ million)
2 815 53,458.0
4,088.0
1 023 0
1,915.1
4,391.9
1,341.6
2,605.7
3,332.3 3,783.64,464.8
1,211
2,917
1,198.21,723.8
+ 43.9%
+ 94.2%
23
755.01,368.8
2,815.5
971.91,977.2
1,023.0
2005 2006 2007 2008 2009 1H09 1H10
Cyrela Partners
1,004.21,924.4
906.0 1,275.7
, 1,198.2
2005 2006 2007 2008 2009 1H09 1H10
Cyrela Partners
Sales Speed Cyrela and Living
C l d Li iCyrela and Living
52%
49%
20%
30%
8%
6%
6%
2%5%
87%
92%
3Q09
2Q09
60%
48%
59%
25%
13% 8%
73%
80%
2Q10
1Q10
4Q09
I 3 th I 6 th I 9 th I 12 th I 15 th
Cyrela Living
In 3 months In 6 months In 9 months In 12 months In 15 months
53% 26% 5%3%4% 91%2Q09 41% 37% 7% 2% 7% 95%2Q09
69%
44%
49%
49%
53%
16%
11%
19%
26%
10%
8%
5%
7%
3%4%
59%
69%
84%
91%
2Q10
1Q10
4Q09
3Q09
2Q09
43%
51%
74%
61%
41%
34%
16%
24%
37%
6%
8%
7%
6%
2% %
85%
96%
98%
95%
2Q10
1Q10
4Q09
3Q09
2Q09
24
69%2Q10
In 3 months In 6 months In 9 months In 12 months In 15 months
43%2Q10
In 3 months In 6 months In 9 months In 12 months In 15 months
Sales Speed Cyrela + Living
Sales over Supply (VSO)Contracted Sales of Inventory (R$ million)
Inventories in June/10: R$ 2.6 bn (10%) and R$ 1.9 bn (%CBR) 5 months of sales*
66.8%60.7%
52 4%
61.5% 62.4%
73.3%
56.1%
728.9 616.5
828.9
863 41,052.0
1,940.9
1,052.5
1,630.9
2,268.5
1,065.8
1,539.9
37.6%
52.4%37.8%
36.5%
32.1%37.6%
25.4%35.7%
69.6%
349.4
1,212.0
414.1 269.6 185.5 315.8
1,014.4 1,439.7
284.2 676.5
702.6 638.4 296.5 296.4
524.0 781.5
863.4 566.1 481.9
839.8 1,065.8
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
Sales of Launches from the Quarter Sales of Inventory % Sales of Inventory3Q09 4Q09 1Q10 2Q10 12M
25* Considering the calculated monthly pre – sales guidance mid range
RJ37%
Landbank
PSV of R$ 39.7 billion (100%) and R$ 33.0 billion (%CBR)
19 plots of land acquired in 2Q10 with R$ 1.8 bn PSV
75% of landbank paid through swaps São Paulo30%
Southeast others
2%
207 projects with 152,000 units
26% up to R$ 130 thd 87% up to R$ 500 thd
Landbank by unit priceNortheast
18%
Midweast1%
North5%
South+Arg+Urug7%
39 641
42,150 11,151
10,392 7,606 1,112 151,851
100,000
120,000
140,000
160,000
17,651
22,148
39,641
20,000
40,000
60,000
80,000
26
-Up to
R$ 100 thdFrom
R$ 100 thd to
R$ 130 thd
From R$ 130 thd
to R$ 200 thd
From R$ 200 thd
to R$ 350 thd
From R$ 350 thd
to R$ 500 thd
From R$ 500 thd
to R$ 600 thd
From R$ 600 thd
to R$ 1,200
thd
Above R$ 1,200 thd
Total
Maximo GuarulhosGuarulhos – SP
Launched in May 2010
Living Economic and
Super Economicsegment
Li i 41 8% f PSV l h d d 32 5% f PSV ld i 1H10
Living’s Launches
Living: 41.8% of PSV launched and 32.5% of PSV sold in 1H10
5.7 thd units in 1H10, of which 3,241 units within “MCMV” program
Launches(R$ million)
Sales(R$ million)
CAGR 05 09 177 2% CAGR 05 09 240 3%CAGR 05-09 = 177.2% CAGR 05-09 = 240.3%
1,350.6
1,726.4 1,499.0
1,806.6
+ 96 6%+ 130.1%
442.6919.7
1,250.3
259.4608.0
43.8
641.1 367.6
845.9
2006 2007 2008 2009 1H09 1H10
602.11,039.4
1,323.7
267.9499.684.8
883.5
366.2
720.2
+ 96.6%
28
2006 2007 2008 2009 1H09 1H10Living Parceiros
2006 2007 2008 2009 1H09 1H10
Living Partners
Living Landbank R$ 7 9 billion (100%) and R$ 6 9 billion (% Living)
Living’s Landbank
Living Landbank R$ 7.9 billion (100%) and R$ 6.9 billion (% Living)
8 plots of land acquired in 2Q10 totaling R$ 1.0 bn PSV
69% of landbank paid through swaps
U it’ i R$ 123 2 thdUnit’s average price - R$ 123.2 thd
PSV Living’s landbank by unit price(R$ million) Region breakdown
7 9249,000
2,507
3,829 7,924
4,000
5,000
6,000
7,000
8,000
São Paulo
RJ19%
Southeast others
4%
1,588
-
1,000
2,000
3,000
Up toR$ 100 thd
From R$ 100 thd to
$
From R$ 130 thd to
$
Total
São Paulo43%
South18%
Northeast8%North
29
40.2 thd units or 52% of PSV eligible to MCMV program
R$ 130 thd R$ 200 thd 8%North8%
Low-Income Segment: Renewed Growth OpportunityMinha Casa, Minha Vida program : Potential demand growth in Brazila Casa, a da p og a o e a de a d g o aLow mortgage rates + incentives = high affordability levelsMonthly rent vs. mortgage payment already in tandem
Purchase Power – Impact of Minha Casa, Minha Vida ProgramPurchase Power – Impact of Minha Casa, Minha Vida Program
Before the Program Post-Program
71 32081,382
93,291105,199
117,107
78,80090,400 92,700 93,309
84,73597,122
109,509121,896
57,08364,505 59,104
71,320
3MW 4MW 5MW 6MW 7MW 8MW 9MW 10MW
Effective
419 558 698 837 977 1,116 1,256 1,395Max monthly
installment(R$)
30Source: IBGE (Brazilian Institute of Geography and Statistics) and Company data
Minha Casa, Minha Vida program enables millions of families to purchase houses
rate(p.a.)
5.12% 5.12% 5.12% 6.12% 8.47% 8.47% 8.47% 8.47%
Economic Segment : Sector’s Outlook
7 MW3 MW3 MW 4 MW4 MW 5 MW5 MW 6 MW6 MW 8 MW8 MW 9 MW9 MW 10 MW10 MW7 MW
1,3951,395 1,8601,860 2,3252,325 2,7902,790 3,7203,720 4,1854,185 4,6504,650
419419 558558 698698 837837 1,1161,116 1,2561,256 1,3951,395
5.12%5.12% 5.12%5.12% 5.12%8.47% 6.17%8.47% 8.47%8.47% 8.47%8.47% 8.47%8.47%
Minimum wage (R$)
Max Installment - 30% (R$)
Effective Rate (p.a.)
3,255
977
8.47%
3,255
977
8.47%
300300 300240 240240 240240 240240 240240 240240
90%90% 90%100% 100%100% 100%100% 100%100% 100%100% 100%100%
55,80050,699 74,40061,705 83,70059,104 91,30971,320 97,12293,291 109,509105,199 121,896117,107
Term (months)
Loan to Value (%)
Maximum financing (R$)
240
100%
84,735
240
100%
81,382
With the Program
Before the Program
23,0006,384 16,0002,800 9,000- 2,000- - - - - - -
78,80057,083 90,40064,505 92,70059,104 93,30971,320 97,12293,291 109,509105,199 121,896117,107
Maximum Incentive (R$)
Purchase Power (R$) 84,735
-
81,382
31Source: IBGE (Brazilian Institute of Geography and Statistics) and Company data
Notes:(1) Loan-to-value: Caixa finances 100% of the units in 240 months, 90% in 300 months and 80% in 360 months.(2) MCMV maximum incentive is R$ 23,000 for five metropolitan regions (São Paulo, Campinas, Santos, Rio de Janeiro and Brasília) and R$ 17,000 for other metropolitan regions
Financing: Interest and Term Impact
Model:
Unit Value: R$ 120,000
Monthly Installment (R$)
10 15 20 25 3012% 1377 1152 1057 1011 98711% 1322 1091 991 941 914
Loan Term (years)
%)
Loan-To-Value: 80%
Loan: R$ 96,000
Mortgage Effort: 30%
10% 1269 1032 926 872 8429% 1216 974 864 806 7728% 1165 917 803 741 7047% 1115 863 744 679 6396% 1066 810 688 619 5765% 1018 759 634 561 5154% 972 710 582 507 458R
eal I
nter
est R
ate
(%
Mortgage Effort: 30%
Example
Rental : R$800 per monthMinimum Wages Required (monthly salary)
Loan Term (years)
3% 927 663 532 455 4052% 883 618 486 407 355
R
Rental : R$800 per monthAnnual Yield: 8%
Equivalent to Loan Instalment with Real Interest Rate at 8%
and 20 years term
10 15 20 25 3012% 10 8 8 7 711% 9 8 7 7 710% 9 7 7 6 69% 9 7 6 6 68% 8 7 6 5 5t R
ate
(%)
Loan Term (years)
32
y7% 8 6 5 5 56% 8 6 5 4 45% 7 5 5 4 44% 7 5 4 4 33% 7 5 4 3 32% 6 4 3 3 3
Rea
l Int
eres
Economic Construction Concept
Simple standardized projects, easily
executed, and focused on process
Market research Partners + R&D Center
‘’Lean Construction’’ Concept Living’s Concept
management
Synergy gains from the integration of
product development, technology and
Product Technology
production process
Better relationship between designers,
manufactures and construction
Production process
Industrial management
Architecture
Integrated process management
This new concept allowed Living to be
competitive in the lower segments of
the pyramid
management
33
CEF Project Flow
Pre-Analysis(Evaluation)
Legal
Engineering RegionalCommittee
ContractingPJ
Risk ContractingPF
Evaluation Company contracting Company (PJ) and Client (PF) contracting
Approved for sale
12,792
Submitted
2,000
To be contracted
4,382
Contracted (PJ)
16,390 Total
39,964TransferredContracted (PF)
4,400*
=
,
Contracted Units
CAIXA Deadline: 15 days CAIXA Deadline: 60 days CAIXA Deadline: 90 days
*1,700 units were transferred from April to June.
34
CEF Living % Living0-3 Minimum Wages 240,569 2,560 1.1%3-10 Minimum Wages 280,374 18,230 6.5%Total 520,943 20,790 4.0%
3 to 10 M.W.6.5% of market share
in approvals(PJ + PF)
Note.: Contracts of Caixa until June, 2010Living updated until June, 2010
StilloNatal - RNLaunched in September 2009
Financial ResultsFinancial Results
Financial Results (R$ million)
Net Revenue - (R$ million)Net Revenue - (R$ million) EBITDA - (R$ million)EBITDA - (R$ million)
911.3
2,847.4
4,087.8
Net Revenue (R$ million)Net Revenue (R$ million) EBITDA (R$ million)EBITDA (R$ million)
157.8 248.5
390.5 461.0
360.6 446.5
22.9% 22.3% 22.9% 16.2% 22.3% 23.3% 19.1%689.0
1,116.7
1,707.3 1,547.1
2,338.3
2005 2006 2007 2008 2009 1H09 1H10
EBITDA Margin
34.4% 34.3% 33.4%
2005 2006 2007 2008 2009 1H09 1H10
Net Profit - (R$ million)Net Profit - (R$ million)Backlog - (R$ million)Backlog - (R$ million)
422.1
277 7
729.3
341.7
5,033.4 5,041.2 5,641.9
36
127.8 242.3 277.7 257.5
18.6% 21.7% 24.7% 9.8% 17.8% 16.6% 14.6%
2005 2006 2007 2008 2009 1H09 1H10
Net Margin
2009 1Q10 1H10
Revenue to be Recog. Gross Mg. To be Recog.
Financial Results (R$ million)
Expenses to Sales Expenses to Net Revenue
4.3%20092009 5.6%
6.3% 5.9%4.0%
8.8%6.7%
6.1%4.1%
2.7%
7.0%
4.8%
6.0% 7.1% 7.6% 8.3% 8.5%
5.8% 5.0% 5.1%6.6% 6.2%
2Q09 3Q09 4Q09 1Q10 2Q10
Selling Expenses Gen. & Admin. Expenses
2Q09 3Q09 4Q09 1Q10 2Q10
Selling Expenses Gen. & Admin. Expenses
37
Accounts Receivable
Accounts Receivable
11,296
Accounts ReceivableAnd Costs to be incurred
2,115.1 3,499.3
20122011
Accounts Receivable Schedule(R$ million)
(R$ million)
9 867
1,429 Finished units: IGP-M + 12%Under Construction: INCC
425 8471.4 523.7
1,161.1 1,932.2
20172016201520142013
9,867
3,755
Constructed units
Schedule of costs to be incurred(sold units- R$ million)
1,167.4 425.8
Up to 20282017
Units under constructionConstructed units
Construction cost to incur – sold units
1,764.9
1,482.1
2011
2010
38
508.0 Further years
Liquidity
Debt(R$ million)
BalanceJune 30, 2010
Maturity Cost
SFH 1 578 2 2009 t 2014 TR + 10 4%SFH 1,578.2 2009 to 2014 TR + ~ 10.4% p.a.
Debentures 1st issuance 500.0 2012 ,2013,2014 CDI + 0.48% p.a.
Debentures 2nd issuance 61.9 2018 CDI + 0.65% p.a.
Debentures 3rd issuance 350.0 2014 CDI + 0.81% p.a.Debentures 3 issuance 350.0 2014 CDI + 0.81% p.a.
Bradesco (stand-by) and others 202.6 Nov/2010, Nov/2011, Nov/2012, Nov/2013 CDI + 0.81% p.a.
Loans (foreign currency) – US$ 50 million 54.0 Sep/2011 and Sep/2012 Libor + 3.5% and 4.3% p.a.
Total Debt withSFH 2 746 7Total Debt withSFH 2,746.7
Total Debt without SFH 1,168.5
Cash and Cash Equivalents (997.1)
Net Debt withSFH 1,749.6
Net Debt with SFH
LTM EBITDA= 2.3 times
39
,
Net Debt without SFH 171.4 Net CASH without SFH
LTM EBITDA= 0.2 time
* Interest rate repactuation in Jan/11
Pre-Sales to be Recognized
2007R$ illi 2008 2009 1H102007
1,597.1
4 515 2
R$ million
Sales to be recognized at the beginning of the period
Net sales recorded in the period
2008
4,081.6
3 974 4
2009
5,124.2
4 324 6
1H10
5,224.0
3 024 24,515.2
(2,030.3)
Net sales recorded in the period
Revenues recognized in the period
3,974.4
(2,930.8)
4,324.6
(4,192.3)
(149.0)Taxes (3.65%) (187.0) (190.7)
3,024.2
(2,377.0)
(213.7)
(2,604.7)
3,933.0Net Sales to be recognized at the end of the period
Cost of units sold to be recognized (3,217.2)
4,937.2
(3,300.8)
5,033.4
( ) ( ) ( )
(3,754.9)
5,641.9
(26.3)
1,327.9
Selling Expenses
Gross profit to be recognized
(37.6)
1,719.9
(14.7)
1,732.6
(20.8)
1,887.0
40
33.8%Percentage of gross profit 34.8% 34.4% 33.4%
Pleno ResidencialBelém - PALaunched in March 2010
A diAppendix
Cyrela’s History•Cyrela Follow-on II
•Second public debenture issue in the amount of R$ 499.5 million
Cyrela Follow on II •3rd debenture issue in the amount of R$ 350.0 million•Merger of Goldsztein Participações into Cyrela
2009
2008
M f B il R lt i t C l V d ti f C l B il R lt
•Cyrela Follow-on I
•Cyrela first debenture issue, in the amount of R$ 500.0 million•Spin-off of Cyrela Commercial Properties (CCP)
2006
2007
•Merger of Brazil Realty into Cyrela Vancouver and creation of Cyrela Brazil Realty Empreendimentos e Participações S.A (CBR) •Cyrela’s IPO
•Cyrela subsidiaries are grouped under Cyrela Vancouver2004
2005
•Brazil Realty a joint Venture with Argentine company IRSA is founded
•Brazil Realty’s IPO
•Beginning of the partnership of Cyrela with RJZ Engenharia, in Rio de Janeiro
1994
1996
2000
42•Cyrela is founded in São Paulo, SP
•Cyrela Construtora is founded and Seller (own sales team) are created
Brazil Realty, a joint Venture with Argentine company IRSA, is founded
1962
1981
Cyrela Brazil Realty Group
Development and Construction Joint Ventures and Partnerships
Sales ServicesSales Services
43
2016 Olympic GamesStrategically positioned landbank in Rio de Janeiro
R$ 14bn of PSV in Rio de Janeiro, of which almost
90% is located in Barra da Tijuca
Barra da Tijuca was chosen as the location for the new
Barra da Tijuca - RJ
C
g y p
Barra da Tijuca was chosen as the location for the new
Olympic Games facilities, such as the Olympic Training
Center and the Olympic Village. Such facilities and their
benefiting to the region will endure for long after the
Cidade Jardim Centro
Metropolitano
Gleba FOlympic Games
Until 2016, more than R$100 billion of investments
expected for the project
G eba
Península
Future facilities of Olympic Games
2016
► The civil construction sector is expected to account for approximately 10% of the investments
► The local government announced R$ 11.4 bninvestment in transportation infrastructure to
Península
44
pfacilitate access to the region
Source: Rio 2016 official Olympic project
Cyrela is the best positioned real estate company to profit from the 2016 Olympic Games
Typical Cyrela Project
Launch Go ahead Delivery Completion
Construction
Launch Go-ahead Delivery pof payments
6M - 18MLicensing
Pre-sales 0 50 70 90 100 10080 95
Up to 100M18M 24M 30M 36M12M6M0M
Licensing
% Budget Costs - - 0% 40% 100% 100%20% 65%
Revenues - - 0 36 100 10016 62
Assumptions for this example:
Potential sales: R$ 100 million
Collections(cumulative) - 7 14 28 50 10020 34
45
Potential sales: R$ 100 million
Exchange agreements (land): R$ 20 million (recognized as revenues and COGS)
Does not include financial revenues deriving from customer financing
Shorter operating cycle: 24 months
Typical Living Projectp g y
Launch Go-ahead Delivery Financing
Contracted Sales
18M 24M Up to 28M12M6M0M
0 - 6 monthsPre-Launching
Construction
Contracted Sales(cumulative) - 70 80 10090 100
%Construction Cost - - 23% 100%55% 100%
RevenuesRevenues(cumulative) - - 19 10049 100
Collections(cumulative) - 6 11 2013 100
Assumptions for this example:
46
Potential Sales: R$ 100 million
Exchange agreements: 100% (R$10 mm), 80% of unit price financed by commercial banks
Client is fully financed by the banks after keys handover
Short Cycle Process
0 – 6 monthsPre-Launching
12M 16M Up to 20M8M4M0M
Launch Go-ahead Delivery
Construction
Financing
Servicing the client from purchase onwards, through a single
Use of “Lean Construction” ConceptAssembly line
Living Corporate EnvironmentEngineeringProduct
Simple, standard and easily executed projects focused on low , g g
communication channel: the Customer Servicing PlatformIn-house and trained sales forceFinancing availability through CaixaEconômica Federal
Assembly lineReduction of waste and costsEnhancement of construction methods for popular housingIncreased productivity and quality during works execution
p jincome segment. Standardization of:► Land acquisition► Real Estate Development► Sales g
Increased costumer satisfactionPrice defined by product (not by sq.m.)15% cost reduction expected
► Construction► Customer Relationship
Prices from R$90,000 to R$ 200,000Units from 45sq.m. to 75sq.m
47
Source: Company
Contact IR
Cyrela Brazil Realty S.A. Empreendimentos e ParticipaçõesAv. Presidente Juscelino Kubitschek, 1455, 3rd floorSão Paulo - SP – BrasilCEP 04543-011
Investor RelationsPhone: (55 11) 4502-3153 ri@cyrela.com.br
www.cyrela.com.br/ir
Statements contained in this press release may contain information which is forward-looking and reflects management'scurrent view and estimates of future economic circumstances, industry conditions, company performance and the financial
lt f C l B il R lt Th j t j ti d h l i l b d t' t ti
48
results of Cyrela Brazil Realty. These are just projections and, as such, exclusively based on management's expectationsof Cyrela Brazil Realty regarding future business and continuous access to capital to finance the Company's businessplan. Such future considerations rely substantially on changes in market conditions, government rules, competitor'spressure, segment performance and the Brazilian economy, among other factors, in addition to the risks presented on thereleased documents filed by Cyrela Brazil Realty, and therefore can be modified without prior notice.
top related