apresentação institucional inglês 05.08.2010
DESCRIPTION
TRANSCRIPT
Institutional Presentation
August 2010
Disclaimer
This presentation does not constitute an offer, or invitation, or solicitation of an offer to subscribe for or
purchase any securities neither does this presentation nor anything contained herein form the basis to any
contract or commitment whatsoever.
The material that follows contains general business information about LPS Brasil – Consultoria de Imóveis
S.A (“Lopes”) as of June 30st, 2010. It is not intended to be relied upon as advice to potential investors. The
information does not purport to be complete and is in summary form. No reliance should be placed on the
accuracy, fairness, or completeness of the information presented herein and no representation or warranty,
express or implied, is made concerning the accuracy, fairness, or completeness of the information
presented herein.
This presentation contains statements that are forward-looking and are only predictions, not guarantees of
future performance. Investors are warned that these forward-looking statements are and will be subject to
many risks, uncertainties, and factors related to the operations and business environments of Lopes and its
subsidiaries such as competitive pressures, the performance of the Brazilian economy and the industry,
changes on market conditions, among other factors disclosed in Lopes filed disclosure documents. Such
risks may cause the actual results of the companies to be materially different from any future results
expressed or implied in such forward-looking statements.
Lopes believes that based on information currently available to Lopes management, the expectations and
assumptions reflected in the forward-looking statements are reasonable. Lastly, Lopes expressly refuses
any duty to update any of the forward-looking statements contained herein.
2
Investment Highlights
3
Mr. Francisco Lopes initiates its activities intermediating properties
193540´s
50´s60´s
70´s
80´s
90´s
00´s
Launch one of the first buildings under the condominium concept
First TV advertisement for a real estate development
Start of long term partnership with Gomes de Almeida Fernandez (Gafisa)
Launch and sell of 14 office buildings at Av. Paulista
Launch and sell of 11 office buildings at the Faria Lima region
Creation of the launching system with sales stands and marketing materials, attracting customers specially during weekends
Identification of Marginal Pinheiros as an attractive area and launch one of the first buildings in the region
Start up of sales of hotel condominium (Flats)
Partner of Grupo Espírito Santo in selling one of the largest launching in Lisboa: Parque dos Príncipes
Introduction of the concept of condominium clubs
First “Top Imobiliário” award, in 1993 – Largest Brokerage Company
Lopes becomes an important player at the segment of gated communities
Triples in size in a decade, strengthening its leadership
Wins its 16th consecutive “Top Imobiliário”
Lopes’ IPO Lopes starts its geographic
expansion process Lopes’ website become leader on
real state market Joint Venture with Itaú Bank in
order to create CrediPronto, our mortgage company.
The company’s first logo
Becomes reference in real estate launchings and presents its new logo
Brokerage Market Has No Other Company With The History and Track Record of Lopes
4
Simple and Focused Value
Added Business Model
Simple and Focused Value
Added Business Model
Main Distribution Channel in the Industry with a
National Footprint
Main Distribution Channel in the Industry with a
National Footprint
Low Risk Business with a
Diversified Client Base : Cash Generator Company
Low Risk Business with a
Diversified Client Base : Cash Generator Company
Already scaled down to face new
market conditions
Already scaled down to face new
market conditions
UnmatchedScale and Reach
UnmatchedScale and Reach
Experienced Management
Team and Outstanding Track Record
Experienced Management
Team and Outstanding Track Record
Investment Highlights
5
Lopes’ Operation
Lopes operates in mid-high and
high income segments of the primary
market
Habitcasa focuses on low income, selling properties up
to R$180 thousand
Pronto operates in the
secondary market, unique
model of franchising and
flagship conversion
Joint Venture with Itaú Bank
in providing mortgages
6
Lopes is exclusively focused on providing value-added real estate brokerage services to its client-developers, with a permanent concern of avoiding conflicts of interest
Formal relationship through agreements
Over 300 Clients
111,330 effective buyers1
1,280,935 prospects included in our data base
Client-Developers Client-Buyers
How
do w
e
do b
usin
ess?
How
do w
e m
ake m
on
ey?2
, 3
$ 0.62$ 0.16
$ 2.22
$ 100
$ 10
Total Price per Unit
Down-payment
GrossCommission
$ 0.85
$ 1.15
Agents +Managers
Reven
ue R
ecog
nitio
n
$ 5.00
Developer
1 Data from the period between Jan/2001 and Sep/092 Figures only for example, not related to financials3 Considering Sao Paulo market
$ 2.00
$ 3.00
Net Commission Premium Contract Advisory Fee
Simple and Focused Business Model…
7
3.23% 3.16% 3.19% 3.10%2.85% 2.79%
2005 2006 2007 2008 2009 2Q10
Lopes Net Commission
SP GVS / Consolidated GVS 100% 95% 80% 50% 48% 49%
Net Commission São Paulo
Net Commission Brazil
3.23% 3.15% 3.06%2.60% 2.54% 2.48%
2005 2006 2007 2008 2009 2Q10
8
Lopes’ business is clearly fundamental to the profitability and returns of its clients…
Working Capital
Is Fundamental Pre Sales
Speed of Sales Concentrated in
the Launch Period
Reliance on Sales Force Scale and Efficiency
Speed of Sales is the Key
for Profitability
With a Key Role in the Real Estate Value-Chain
More than 9,000 brokers
Real Estate DevelopmentBrazilian Market Dynamics
…and its scale and reach – nearly impossible to replicate – enhance this importance
9
Lopes is focused on providing its clients with a full range of consulting services, from land procurement advisory to product formatting, development and sale
Value-Added Services Across the Development Cycle
Determines the Site’s Vocation
Determines the Site’s Vocation
Masters Market
Research
Masters Market
Research
Formats ProductMeeting Buyers’
“Wants and Needs”
Formats ProductMeeting Buyers’
“Wants and Needs”
Develops Marketing Campaign
Develops Marketing Campaign
Optimizes Media
Negotiations
Optimizes Media
Negotiations
Coordinates Product Launching
Events
Coordinates Product Launching
Events
Individual Sales
Strategy Created to
Each Product
Individual Sales
Strategy Created to
Each Product
Coordinates Product
Launching Events
Coordinates Product
Launching Events
10
Lopes: The virtuous circle that makes us the Best Brokerage Company in the Real Estate Market
Market Inteligence Brokers
ProductsSales
Clients
11
Institucional Website
12
Evolution of visits to Lopes’ Website
Source: Google Analytics,
The most visited website in the
real estate market
Strong investment in online media
Increased generation of
Leads
Higher sales conversion
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
594,442
1,308,093
2,018,0642,195,698
2,432,7032,578,826
3,533,156 3,523,517
4,248,592 4,348,621
Competitive Advantage
Competitive Advantage: A single, integrated solid Company
“Lopes” culture in all business units of different
states
National Integration of Systems
One single brand, recognized by the
market
Identity that stands Lopes out from the
competitors
13
Notes: Managerial Reports.
Absorption calculated over available units
Location
Usable Area
Sales
Location
Usable Area
Sales
Location
Usable Area
Sales
Location
Usable Area
Sales
Location
Usable Area
Sales
100% sold.
Developer: Helbor.
CASE
100% sold.Developer: Dominus/ PDG Realty
CASE
100% sold.Developers Helbor
CASE
100% sold.Developer: Even.
CASE
100% sold.Developer: Even.
CASE
Sales Expertise in all Market Segments
HIGH
MEDIUM-HIGH
MEDIUM
ECONOMIC
BUSINESS UNITS
Alto da Lapa / SP
349m²
Duo Alto da Lapa – Sep/ 09
44 un. – R$ 5,600/m²
Chacara Sto Antonio / SP
Helbor Offices – Aug/ 09
14
42 / 45 m²
140 un. – R$ 5,300/m²
Santa Mônica / BH
52 /54/67/69 m2
Novo Horizonte Jardins II – Mar / 10
192 un. – R$ 2,350/m²
63 / 80m²
Espaço & Vida Ipoema – Jan / 10
240 un. – R$ 2,867/m²
Alto da Lapa / SP
76 / 93 m2
Tribeca – Mar / 10
132 un. – R$ 4,850/m²
Mogi das Cruzes / SP
Geographic Expansion
15
Lopes is Growing Nationwide
SOUTHEAST REGIONSão Paulo – Beginning of operations in 1935. Acquisition of 60% of Capucci &Bauer, in October 2007, for R$9 million (7.1x P/E 2008) and an earn-out payment.
Rio de Janeiro – Entry by greenfield operation, with beginning of operations in July 2006, with LCI-RJ. Lopes acquires permanently an additional 10% stake of Patrimóvel, in July 2010, amounting to a total 20% share.
Espírito Santo – Acquisition of 60% of Actual, in July 2007, for R$5.76 million (7.0x P/E 2008) and an earn-out payment.
Minas Gerais – Entry by greenfield operation with beginning of operations in February 2008.
SOUTHERN REGIONStates of Rio Grande do Sul, Santa Catarina and Paraná – Acquisition of 75% of Dirani, in May 2007, for R$15.1 million (7.5x P/E 2008) and two ear-out payments. In July 2008, Lopes acquired the 25% left by the call/put mechanism.
MIDDLE WEST REGIONFederal District – Acquisition of 51% of Royal, in November 2007, for R$12 million (9.0x P/E 2008) and an earn-out payment.
Goiás - Greenfield operation with beginning of operations in August 2008.
NORTHEAST REGIONBahia - Greenfield operation with beginning of operations in October 2007.
Pernambuco – Acquisition of 60% of Sérgio Miranda, in August 2007, for R$ 3 million (10.0x P/E 2008) and an earn-out payment. In September 2009, Lopes acquired the 40% left by the call/put mechanism.
Ceará e Rio Grande do Norte – Acquisition of 60% of Immobilis, in January 2008, for R$2.4 million (10.0x P/E 2008) and an earn-out payment.
Lopes tracks developers’ regional movements, consolidates its position as the largest consulting and
sales player
PR
RJ
BA
SP
RS
ES
SC
PE
MG
DF
CE
GO
16
RN
Lopes’ Market Mix
2Q09 3Q09 4Q09 1Q10 2Q10
42%53% 52% 54% 49%
6%
5% 6% 5%5%
21%
16% 14% 14%17%
9%7% 12% 10% 11%
6%6%
6% 6% 6%
16% 13% 10% 11% 13%
São Paulo
Rio de Janeiro
Brasília
SouthNortheast
Other*
*Other: Ceará, Estpírito Santo, Minas Gerais, Goiás and the city of Campinas 17
Lopes in the Low Income Segment
18
HABITCASA: Focus on Low Income Segment
Focus on Low Income Segment
Units up to R$ 180 thousand
The Habitcasa brand is applied in all Lopes’ markets
19
20
Habitcasa Stands Up as the Biggest Player in sales in the Low Income Segment
1,561 units sold in the 2Q10 Average Price in the
2T10 of R$146 thousand
65% Sales Speed In the 2Q10
Sales in the 2Q10 increased 50% when
compared to the 2Q09
Only Real State Brokerage Company
specialized on the low income segment, not only in sales, but also
in advisory
In 2009, Habitcasa became Caixa’s correspondent
21
37%
43%
13%7%
13%
39%27%
22%15%
38%22%
25%
34%
44%
17%5%
2Q09
2Q09
2Q10
2Q10
Units Sold
Contracted Sales
Sales by Income Segment Primary and Secondary Market
Total units sold = 12,369
Total Contracted Sales = R$3,410 million
Increase in the Potential Demand
Maturity in years
10 15 20 25 30
12% 13 11 10 10 9
11% 13 10 9 9 9
10% 12 10 9 8 8
9% 12 9 8 8 7
8% 11 9 8 7 7
7% 11 8 7 6 6
6% 10 8 7 6 6
5% 10 7 6 5 5
Maturity in years
10 15 20 25 30
12% 1,377 1,152 1,057 1,011 987
11% 1,322 1,091 991 941 914
10% 1,269 1,032 926 872 842
9% 1,216 974 864 806 772
8% 1,165 917 803 741 704
7% 1,115 863 744 679 639
6% 1,066 810 688 619 576
5% 1,018 759 634 561 515
Unit ValueR$120,000
MortgageR$96,000
30% of income commitment
80% of the total value financed
In Minimum Wages Monthly Payment (R$)
Inte
rest
Tax (
%)
Inte
rest
Tax (
%)
22
Better Economic Situation of the Low Income Segment…
Monthly Income (Millions of Families) 2007 2008
Untill R$1,000 31.7 53% 29.1 31%
From R$1,000 to R$2,000 15.5 26% 27.6 29%
From R$2,000 to R$4,000 8.4 14% 21.8 23%
From R$4,000 to R$8,000 3.3 5% 11 12%
From R$8,000 to R$16,000 1.1 2% 4.3 5%
From R$16,000 to R$32,000 0.3 0% 1.3 1%
More than R$32,000 0 0% 0.3 0%
TOTAL 60.3 100% 95.4 100%
Government Budget
FGTS BNDES TOTAL
25.5
7.5
1
34
“Minha Casa, Minha Vida” Funds
1992 1995 1998 2001 2004 2007 2008
32.536.5 37.4
38.0 40.0
47.0
52.0
% of the population with monthly income between R$1,064 and R$4,561 (program’s
target population)
Source: “Minha Casa, Minha Vida” Program
Source: FGV Source: IBGE, FGV, Ernst & Young
23
Government Budget
FGTS TOTAL
62.2
9.5
71.7
“Minha Casa, Minha Vida 2” Funds
2.2 3 4.9 9.318.4
25.2
3.8 3.95.5
7
6.9
10.2
2003 2004 2005 2006 2007 Savings untill Oct 2008 FGTS untill Nov 2008
Financed with FGTS' Funds Financed with Savings' Funds
Housing Credit (R$ billions)
Housing(‘000)
Total of houses
New houses formed
New houses
financed
% of new houses
financed
2002 48,035 1,530 83 5%
2003 49,710 1,675 104 6%
2004 51,752 2,042 112 5%
2005 53,114 1,362 101 7%
2006 56,610 1,496 151 10%
2007 56,343 1,733 166 10%
... and also Better Supply of Mortgages
Source: ABECIP, Central Bank of Brazil, CEF e FGV
Source: IBGE, BC
24
Minha Casa Minha Vida
Brazilian Government will dispose of R$34 bi.
In the State of São Paulo 183,995 units will be built.
Source: Lopes’ Market Intelligence
São Paulo’s families
(3.4 million of families)
41% have a monthly family income between 3 and 10
minimum wages, with “Minha Casa, Minha Vida” this families will become potential buyers.
It is estimated that there is a 140 thousand units demand in the
city of São Paulo inside the“Minha Casa, Minha Vida”
program .
10% has purchase intention for the next 12 months
(1.4 million of families)
Premise: with the federal government subsidy, the decrease of interest rates and more extended mortgages terms, the minimum family income to acquire a R$100 thousand house became 3 minimum wages, not 6 minimum wages as before. 25
Steps Untill 3 minimum wages Between 3 and 10 minimum wages
Government Contribution
R$16 billionR$10 billions
(2.5 bi Government and 7.5 bi FGTS)
Subsidy Full Value -
Insurance Exception Reduction
Registration Costs ExceptionReduction
(90% form 3 to 5 minimum wages80% from 5 to 10 minimum wages)
40%
20%10%
10%
20%0 to 3 minimum wages
3 to 4 minimum wages
4 to 5 minimum wages
5 to 6 minimum wages
6 to 10 minimum wages
5%
24%
21%
51%
Espírito SantoMinas GeraisRio de JaneiroSão Paulo
Units per Income Units Distribution In the Southeast Region
Minha Casa Minha Vida
26
Steps Untill 3 minimum wages Between 3 and 10 minimum wages
Government Contribution
R$37 billionR$25 billions
(15.5 bi Government and 9.5 bi FGTS)
Subsidy Full Value -
Insurance Exception Reduction
Registration Costs ExceptionReduction
(90% form 3 to 5 minimum wages80% from 5 to 10 minimum wages)
60%
30%
10%
0 to 3 minimum wages
3 to 6 minimum wages
6 to 10 minimum wages
Units per Income
Minha Casa Minha Vida 2
27
Lopes in the Secondary Market
28
Strengthening of mortgage origination and other related services.
Leadership position in their
respective markets
Management Excellence
High Value Brands
Joint Venture Lopes Itaú
Lopes and Itaú created the first and biggest pure mortgage company of Brazil.
Direct and exclusive access to its customer database
Seamlessly integrated operation with Lopes’ sales process, including an incentive compensation plan
Lopes media exposure
Service excellence Competitive financing terms and
conditions Speed and quality of processing Experienced credit analysis Successful exposure to the
lending business and in joint ventures
29
Innovative Real Estate Financing Process
Credit Analysis
Assessment of the Property
Legal Analysis Issuance of the Contract
Release of Resources
24 hoursUntil 3
working days
2 working days
3 working days
5 working
days
Efficiency in Release of Credit
The deadlines mentioned are linked to the complete delivery of the documentation and they can change in case of any restrictions.
CrediPronto!
30
CrediPronto!
Efficiency on releasing mortgages;
Agility and perception of a non-financial institution; and
Lower process costs.
Focus on the Secondary Market
Opportunity to work in the Primary Market with small Developers
Competitive Advantages
31
The only real mortgage company of the market and possibly with no conditions of being copied.
Financed Volume
CrediPronto!
CrediPronto! financed in the 2Q10 R$146.0 million, which accounted for R$232.9 million in mortgages for 2010 .
(R$ MM)
2Q09 2Q10 1H09 1H10
27.2
146.0
49.0
232.9
436%
375%
32
jan/10 feb/10 mar/10 apr/10 may/10 jun/10
216.7
247.4
290.9
330.9
384.9
436.8
Monthly Progress of the Mortgage Portfolio
CrediPronto!
(R$ MM)
26%
33
Pronto! One Stop Shop Concept
One Stop Shop
Purchasing/Selling your property
+Financing
34
Synergies Between Credipronto! and Pronto! – Competitive Advantage
35
Easy Credit
Access
(Financing)
Distribution
Channel
Pronto! and CrediPronto! acting together create a competitive advantage that is hard to replicate.
Brazilian Real Estate Market
36
19%
14%
52%
16%
Social Economic Scenario and Housing Shortage
Source: Fundação João Pinheiro e Ministério das Cidades
Source: Credit Suisse
BrazilBrazil1,8x1,8x
MexicoMexico4,0x4,0x
G-7G-79-10x9-10x
0 to 45 to 9
10 to 1415 to 1920 to 2425 to 2930 to 3435 to 3940 to 4445 to 4950 to 5455 to 5960 to 6465 to 69
more than 70
-5% -4% -3% -2% -1% 0% 1% 2% 3% 4% 5%
Men Women
* Qualitative Housing Shortage is the number of times that a family moves to different houses in life
Age Pyramid in Brazil Segments by Income in Brazil
Quantitative Housing Shortage(millions of homes)
Qualitative Housing Shortage
Source: IBGE
37
47 million homes
A/BIncome
> US$ 2,509
Income betweenUS$ 582 and US$ 2,509C
Income between US$ 419 and US$
582
D
Source: FGV
EIncome
< US$ 419
1991 2000 2006 2007 2008
5.4
6.7
7.9
6.35.8
Source: Goldman Sachs – Base 2007-2008
Mortgage Market
Mortgage Market as a % of GDP
UKUSA
Germ
any
Japan
S Africa
Isra
el
Hungar
y
Czech
Bulgar
ia
Polan
d
Kazak
hstan
Ukran
ia
Roman
ia
Turk
ey
Egyp
t
Russia
Chile
Mex
ico
Argen
tina
Brazil
Colom
bia
Taiw
an
Mal
asya
Thai
land
S Kor
ea
China
India
Philipin
es
Indon
esia
86%
66%
50%
40%
33%
22%
10%6% 5% 5% 3% 3% 1% 1% 0% 0%
15%11%
2%3%
2%
35%30%
15%13%9%
5% 5%2%
38
Se-ries1
14.3 15.216.8
23.121.7
16.5
6.7
Number of Launches - SP
GVS¹ Launched (R$ bn) - SP
Units Launched (‘000) - SP
¹ Launched values adjusted by the INCC until February/10
1996 1997 2006 2007 2008
Nominal GVS launched in 2008 was the same amount as 2007: R$ 20 bn.
Launches Metropolitan Region of São Paulo – Historic data
Source: Lopes’ Market Intelligence
2009
39
5M10
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 5M10
509
377341
467 458
538 548509
442478
574548
494
196
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 5M10
70
33 3540
35 34 3731
36 38
68 70
59
25
Sales Speed Metropolitan Region of São Paulo
Source: Secovi –SP and Lopes’ Market Intelligence.
Units Launched and SoldSP Capital
40
Average (Units Sold/Launched) = 0.80
Average (Units Sold/Launched) = 1.50
Units Launched
Units SoldYear Units Launched Units Sold
2008 34,500 32,8002009 30,100 35,800
4,027
may/10mar/10jan/10jul/08may/08 sep/08 nov/08 jan/09 mar/09 may/09 jul/09 sep/09 nov/09
3,613
1,113
382
5,663
2,173
6,131
1,949
R$/m2
SPMR Real Estate Market Overview – Prices
Source: EMBRAESP
Nominal
INCC Adjusted
Evolution of Average Launches’ Prices in SP
R$/m2
41
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
1H
10
1357 13701546 1619 1741
19302230
2473
2861 28953064 2979
32113475
4003
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
1H
10
39443716
3995 3956 3891 39944205
4007 41633869 3875
3577 3524 3567
4139
Brazil
63%
37%
The Secondary Market
Source: ITBI, Gafisa prospectus, Cushman Wakefield report, team analysis
118
Primary
Secondary
100%
(Total in R$ billion, % of total potential sales value)
Real estate market by segment
In the city of São Paulo, the difference is as high as 30% ~ 50%
USA Spain South Africa Mexico
139 11
19
Difference (in %) between the average price per m² in new development vs.
used properties
42
Factors that Sustain the Growth in the Real State Market
Positive Economic TrendBrazil is Latin America’s biggest economy and presents economic, political and social stability;Positive economic fundaments: 1. Country-risk in minimum historical level 2. Inflation under control 3. Extern debt at lower levels 4. Decreasing of the unemployment tax
Real State Sector Development
Consumer’s buying intention increase;
Technology achieved in both sides;
Products with more sophisticated attributes for the middle income segment;
Technology in the low income segment construction; and
Development of new
Brazilian markets.
Housing Deficit
Estimated deficit of 7.5MM de houses;
Bad quality housing for middle and low
income segments.
Financing Availability Smaller Taxes, longer terms;
SFH and FGTS limit increase;
Higher participation of the private sector; and
In Brazil, the mortgages represent 10-20% of the total credit, smaller than in other countries (70%).
43
Lopes’ Confidence Index
44
(base: jan/2009=100)Source: Lopes Market Intelligence
Lopes’ Confidence Index (LCI) - June/10
Lopes is the first company to create a Real Estate Consumer Confidence Index.
45
Lopes’ Confidence Index intend to measure clients confidence, so Lopes can follow and anticipate, in
the short term, housing purchase tendency.
The sample has 572 interviews, with Grande São Paulo resident clients, which contacted Lopes in the
last 3 months and are interested in purchasing a new home.
Lopes’ Confidence Index (LCI)
June/10
jan/09 feb/09 mar/09 apr/09 may/09 jun/09 jul/09 aug/09 sep/09 oct/09 nov/09 dec/09 jan/10 feb/10 mar/10 apr/10 may/10 jun/10
118.0
124.7131.6 133.8
147.4
137.5141.3 145.3 142.8
153.4157.8
145.9142.1 138.7
142.3136.6138.0
133.2
100.0
105.7 109.4
116.3124.1
119.0 120.3125.3 127.0
134.4137.6
131.7 128.2 127.4131.3
127.5 130.0128.7
82.086.8
87.298.7
100.8 100.5 99.3 105.3111.2
115.5 117.5 117.6 114.4116.0120.4
118.5 122.0124.1
Expectation Index
Lopes' Confidence Index
Present Situation Index
(base: jan/2009=100)Source: Lopes Market Intelligence
Present Purchase Intention Growth
Positive atributes
For the Real Estate Market are
considered positive attributes the
intentions of purchasing properties in
HIGH and MEDIUM levels which were
mentioned at the moment of the
interview.
. 46
Sales Speed Over Supply
47
Sales Speed over Supply
2Q09 2Q10
25.9%36.4%
Lopes' Consolidated Sales Speed
*Management information,The Sales Speed over Supply is obtained based on the quarter’s contracted GVS compared to inventory and launches.
2Q09 2Q10
60.7%
65.4%
Habitcasa’s Sales Speed
48
Sales Speed Over Supply HBC x In-House Sales Forces
0 1 2 3 4 5 6 7 8 9 10 11 12 13-10%
0%
10%
20%
30%
40%
50%
60%
70%
In-House Sales Forces
Habitcasa’s Sales Speed Over Supply proves to be much larger than the averageof the Internal Sales Forces’.
Habitcasa’s Sales Speed Over Supply
Month
49
Operational Highlights
50
Contracted Sales’ Historical in the Primary Market*
* Unaudited managerial information.
Total GVS – Primary Market
(in R$ million)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
591 850 1,166 1,253 1,556 1,853 2,545
4,873
9,370 8,658
CAGR:
31%
51
2Q09 2Q10
7,940
11,756
381
613
Primary Market Secondary Market
Contracted Sales
(R$ MM)
Contracted Sales
52
2Q09 2Q10
2,020
3,138
163
272
Primary Market Secondary Market
2,183
56%8,321
Units Sold
49%
3,410 12,369
Financial Highlights
53
54
Net Commission
São Paulo Rio de Janeiro Other Markets Brazil
3.0%2.8%
2.3%2.6%
2.9%
2.2% 2.2%
2.6%2.8%
2.5%
2.1%
2.5%
2.8%
2.5%2.3%
2.6%2.8%
2.2% 2.1%
2.5%
2Q09 3Q09 4Q09 1Q10 2Q10
Net Commission by Market
Results 2Q10
Results 2Q10 (R$ ‘000)
LOPES PRONTO!
CREDIPRONTO!
CONSOLIDATED
Net Revenue 76,147 3,540 181 79,868
Operating Costs and Expenses (36,615) (2,861) (1,025) (40,501)
Stock Option Expenses (CPC 10) (816) (816)
Expenses Accrual from Itaú (238) (238)
Pro-Forma EBITDA1 39,294 679 (844) 39,129
Pro-Forma EBITDA Margin 52% 19% -466% 49%
Pro-Forma Net Income2 24,915 330 (1,238) 24,007
Pro-Forma Net Income Margin 33% 9% -684% 30%
Without Pronto! and Credipronto!’s effect, Lopes’ EBITDA would’ve been R$39
millions, with a 52% margin and a Net Income of R$25 million, with a
33% margin.
Brasília had a R$8.3 million Income, while Campinas had a
R$2.1 million Income, what explains the minorities Interests of
R$6.0 million.
551 Pro Forma EBITDA is a non-accounting measure drawn up by Lopes, which consists on EBITDA excluding the effects of stock option expenses.2 Pro Forma Net Income is a non-accounting measure drawn up by Lopes, which consists on EBITDA excluding the effects of stock option expenses.
The CrediPronto! Revenue does not
include the mortgages
financial spread
Costs of Services Provided and Operating Expenses
Operating Costs and Expenses
(R$ MM)
56
4Q09 1Q10 2Q10
42.5 43.8 44.1
The strategic management of costs and expenses of the Company guaranteed the maintenance of their levels over the quarters.
Guidance for 2010
57
Sales’ Guidance for 2010
(R$ BI)
* The General Value of contracted sales (Contracted GVS) projected in this release may change due to many variables. This material fact includes forward looking statements related to business perspectives, results estimates and, also, the growth outlook for Lopes. Such forward looking statements may be substantially affected by changes in market conditions, government decisions, stronger competition, industry performance as well as Brazilian economy performance, in addition to those risks presented in the documents released and filed by Lopes, consequently, they are subject to changes without previous notice. 58
2009 Sales 2010 Guidance
9.3
12.0 – 12.5
32%
Additional Information
59
Two seasonality components:
• Natural variation in sales related to holidays or vacation periods over the year. The first quarter is more significantly affected by summer vacations and the week of Carnival celebrations.
• Variations in sales stemming from the sales pipeline in the real estate development market, in which projects launched are subject to licensing and permit requirements, which account for significant distortions in a quarter-over-quarter comparison.
Lopes’ Contracted Sales Seasonality
Unstable sales behavior in each quarter accounts for variations in yearly sales
2005 2006 2007 2008* 2009
17% 18%14%
23%
15%
21%
31%
22%
32%
24%25%22% 23%
29% 28%
37%
29%
41%
16%
33%
1Q 2Q 3Q 4Q
60* The seasonality can not be verified in 2008, because of the effects of the world financial crisis.
Ownership Structure
Total of 49,506,719 common shares
Ownership Structure Post-IPO
61
37%
9%19%
30%
4% 1%
Rosediamond LLP
F.I.M. Crédito Privado Mocastland
Management
Foreigner Investors - Free Float
National Investors - Free Float
Individual Investors