apresentação institucional inglês 1 t12
TRANSCRIPT
Institutional Presentation
May 2012
1
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
(“LPS”) as of March 31st, 2012. 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 LPS 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 LPS 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.
LPS believes that based on information currently available to LPS management, the expectations and
assumptions reflected in the forward-looking statements are reasonable. Lastly, LPS expressly refuses any duty to
update any of the forward-looking statements contained herein.
2
Investment Highlights
3
Highlights 2011
Awards
Achievements
CrediPronto! was awarded in the segment “Best Online File
Management”
Highlighted for the efficiency in the mortgage approval
VII Award
Relatório Bancário
Considered the main award of the real estate industry in
Brazil;
Lopes won every Top Imobiliário, since its first edition
in 1993.
Top Imobiliário Award Ranking Valor 1000
Listed by Valor Econômico as one of the 1000 largest business
groups in Brazil;
Highlighted as the 20th higher net margin among
all groups;
8th place in value generation among service companies.
Assertive M&A strategy,
expanding the business to other regions of the country;
Lopes was considered the
largest company in real estate brokerage and
consulting in Brazil, in the last five years.
IG/ Insper Award
4
Mr. Francisco Lopes
initiates its activities
intermediating
properties
1935
40 s
50 s
60 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.
Lopes’ follow-on
The company’s first
logo
Becomes reference in real
estate launchings and
presents its new logo
The Brokerage Market Has No Other Company With Our History
and Track Record
5
Simple and Focused Value Added
Business Model
Main Distribution Channel in the Industry with a
National Footprint
Low Risk Business with a Diversified
Client Base : Cash Generator Company
Already scaled down to face new market conditions
Unmatched Scale and Reach
Experienced Management Team
and Outstanding Track Record
Investment Highlights
6
Joint Venture with Banco Itaú to
provide mortgage loans
Low, mid and high-income segments
Mortgage Loan Primary Market Secondary Market
Focus on secondary market, with a
unique model of own stores and a
network of licensed brokers
Growth through acquisitions
LPS Brasil: Unique Business Platform
+
7
Lopes Net Commission
8
Net Comssion Fee
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
BRAZIL 2,45% 2,63% 2,48% 2,30% 2,36% 2,36% 2,42% 2,31%
Primary
SP 2,97% 3,25% 3,07% 2,88% 2,95% 2,87% 3,06% 2,78%
Habitcasa 1,77% 1,90% 1,87% 1,90% 1,91% 2,12% 2,05% 2,02%
RJ 2,17% 2,06% 2,08% 2,17% 2,02% 2,23% 2,12% 2,11%
Other Markets 2,14% 2,28% 2,14% 2,13% 2,11% 2,08% 2,06% 2,12%
Secondary
SP 2,21% 2,16% 2,28% 2,22% 2,34% 2,33% 2,40% 2,24%
RJ 2,33% 2,43% 2,52% 2,42% 2,28% 2,33%
Other Markets 2,08% 2,36% 2,35% 2,53% 2,33%
Virtuous Cycle of the Business Model Creating Strong Barriers to Entry
Strong Established Base
Leading, nationally recognized brand
Present in 12 Brazilian states and in the Federal
District
Extensive distribution channel
Database with more than 2 million clients
More than 380 homebuilder clients
Leadership and Wide Range of Products Indisputable Sales Performance
1Q12 was the best first quarter of
LPS history, with R$4.0 billion in
sales.
CrediPronto! achieved 322
million in origination in the quarter
and R$1,3 billion in 2011.
Most visited website in the real
estate sector: 15 million visitors in
2011.
Retention of Talent
Largest sales force: more than 16,000
independent brokers
Attracts and maintains its sales force
Leader in the primary market
One-stop-shop: unique and
complete solution for the client
: unique platform to
develop the secondary market
: partnership with one
of the largest retail banks in the
world, Itaú Unibanco
9
Institutional Website
Visits on www.lopes.com.br
Source: Google Analytics,
The most visited
website in the real estate market
Strong investment in online media
Increased
generation of Leads
Higher sales conversion
• Over 15 million unique visitors in
2011
•700 launches and more than 50
thousand units in the secondary
market.
• Mobile version compatible with
over 5 thousand kinds of cell phones
• First brokerage company to launch
an App for iPad
• Leader in presence in social
networks
10
Competitive Advantage
Competitive Advantage: A single, integrated and 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
11
LPS Brasil’s Market Mix
São Paulo
Rio de Janeiro
Brasília
South
Other*
*Other: Northeast, Estpírito Santo, Minas Gerais, Goiás.
59% 53% 56%
49% 50% 47% 47% 52% 51%
5%
5%
10% 19% 18% 24%
21%
25% 22%
14% 17%
9% 12% 9%
8% 7%
4% 4%
10% 11% 12%
10% 11%
12% 12%
10% 12%
12% 14% 12% 9% 12% 9%
13% 8% 11%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
12
LPS Brasil in the Primary Market
13
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 382 Clients
2,081,769 prospects
included in our data base
Client-Developers Client-Buyers
Ho
w d
o w
e d
o
bu
sin
ess
?
Ho
w d
o w
e m
ak
e m
on
ey
?1
$ 0.53
$ 0.19
$ 2.04
$ 100
$ 10
Total Price
per Unit
Down-
payment
Gross
Commission
$ 0.97
$ 1.41
Agents +
Managers
Re
ve
nu
e R
ec
og
nitio
n
$ 5.13
Developer
1 Launches Lopes 1Q12
$ 2.38
$ 2.75
Net Commission Premium Contract Advisory Fee
Simple and Focused Business Model…
14
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
Masters Market
Research
Formats Product Meeting Buyers’
“Wants and Needs”
Develops Marketing Campaign
Optimizes Media
Negotiations
Coordinates
Product
Launching
Events
Individual Sales Strategy
Created to Each Product
Coordinates Product
Launching
Events
15
Lopes is Growing Nationwide
SOUTHEAST REGION São 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. Acquisition of 51% of Itaplan, in September 2011, for R$29.2 million
(R$10.6 million + R$18.6 million earn out). Acquisition of 51% of Eduardo
Imóveis, in October 2011, for R$10.2 million (R$3.4 million + R$6.8 million earn
out).
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, and more 31% in October 2010 (51% total).
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. Acquisition of 51% of Brisa, in September 2011, for R$5.5 million
(R$1.9 million + R$3.6 million earn out).
SOUTHERN REGION States 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 REGION Federal District – Acquisition of 51% of Royal, in November 2007, for R$12
million (9.0x P/E 2008) and an earn-out payment.
Goiás - Greenfield operation with beginning of operations in August 2008.
NORTHEAST REGION Bahia - Greenfield operation with beginning of operations in October 2007.
Pernambuco – Acquisition of 60% of Sérgio Miranda, in August 2007, for R$ 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. In 2010, there was a transfer
to LPS Fortaleza –of 100% (one hundred percent) of the capital stock of LPS
Pernambuco.
Ceará e Rio Grande do Norte – Acquisition of 60% of Immobilis, in January
2008, for R$2.4 million (10.0x P/E 2008) and an earn-out payment.
Lopes tracks developers’ regional movements, consolidates its
position as the largest consulting and sales player
PR
RJ
BA
SP
RS
ES
SC
PE
MG
DF
CE
GO
RN
Source: Lopes RI 16
HIGH
MEDIUM-HIGH
MEDIUM
ECONOMIC
BUSINESS UNITS
Sales Expertise in all Market Segments
Curitiba/ PR
30/ 70m²
Neo Superquadra – Corporate – Jan/12
92 un. – R$ 4,000/m²
Location
Usable Area
Sales
Paulínia / SP
58/ 123m2
Premiere Morumbi – Feb/12
376 un. – R$ 3,500/m²
Location
Usable Area
Sales
Rio de Janeiro/ RJ
42/ 66 m²
Naturalle – Feb/12
216 un. – R$ 4,700/m²
Location
Usable Area
Sales
100% sold.
Developer: Arquisul
CASE
97% sold.
Developer: Queiroz Galvão
CASE
98% sold.
Developer: Brookfield
CASE
Consolação/ SP
34/190 m2
Roof Gardens Bela Cintra – Oct/ 11
118 un. – R$ 11,600/m²
Location
Usable Area
Sales
97% sold.
Developer: Fakiani
CASE
Tatuapé/ SP
100 m²
Helbor Boulevard Tatuapé – Mar/12
72 un. – R$6,400/m²
Location
Usable Area
Sales
99% sold.
Developer: Helbor
CASE
17
LPS Brasil in the Low Income Segment
18
HABITCASA: Focus on Low Income Segment
Focus on Low Income Segment
Units up to R$ 300 thousand
The Habitcasa brand is applied in all Lopes’ markets
19
12%
39% 23%
25%
1Q11
1Q11
1Q12
1Q12
Units Sold
Contracted Sales
Total units sold = 12,708
Total Contracted Sales = R$4,003 million
Sales by Income Segment – Primary and Secondary Markets
10%
31%
24%
35%
31%
47%
15%
6% 9%
43% 35%
13%
20
LPS Brasil in the Secondary Market
21
Pronto!
Pronto has 252 stores in 11 States + Federal District : 52 owned stores and
200 licensed brokers
SOUTHEAST REGION
São Paulo – Acquisition of 51% of VNC, in July 2010, for R$7.1
million (R$ R$1,8 million + R$0,3 million of investments + R$5,2
million of earn out ).
Acquisition of 51% of Plus Imóveis, in August 2010, for R$11.7
million (R$4.7 million + R$7.0 million of earn out).
Acquisition of 51% of Maber, in September 2010, for R$17.3 million
(R$6.0 million + R$11.3 million of earn out).
Acquisition of 55% of Local, in December 2010, for R$25.6 million
(R$10.0 million + R$15.6 million of earnout)
Acquisition of 60% of Erwin Maack, in March 2011, for R$8.4 million
(R$2.9 million + R$5.5 million of earn out)
Acquisition of 51% of Condessa in July 2011, for R$4.9 million
(R$1.9 million + R$3 million of earn out).
Acquisition of 60% of Imóvel A in October 2011, for R$24.3 million
(R$10 million + R$14.3 million earn out).
Acquisition of 51% of Foco in March 2012 , for R$15 million (R$6
million + R$9 million earn out).
Acquisition of 51% of Piccoloto in March 2012, for R$10 million
(R$4 million + R$6 million earn out).
Acquisition of 51% of Cappucci in March 2012 , for R$6.6 million
(R$2.5 million + R$4.1 million earn out).
Rio de Janeiro – Acquisition of 51% of Self Imóveis, in July 2010,
for R$ 2,6 million (R$900 thousand + R$1,7 million of earn out)
FEDERAL DISTRICT :
Acquisition of 51% of AçãoDall’Oca in April 2011, for R$12.2 million (R$3 million + R$9.2 million of earn out).
SOUTH REGION
Rio Grande do Sul – Acquisition of 51% of Ducati, in December
2010 forR$15,5 million (R$5.3 million + R$10.2 million of earnout).
Paraná – Acquisition of 60% of Thá, in February 2011, for R$20.9
million (R$7.4 million + R$13.6 million of earnout).
22
Present in 11 states and the Federal District
– Covers 91% of the Brazilian GDP
– Over 50 own stores
– 200 licensed brokers
– Strong presence in São Paulo and Rio de Janeiro
Unique one-stop-shop business model
Solid client base
Strong internet presence
Diversified products in the portfolio
Unique Platform Poised for Growth Well Defined Acquisition Model with a Successful Track
Record
Appreciation and alignment of interests
– Earn-out
– 51% ownership stake
Natural Consolidator
Potential synergies:
– Scale and reach: network effect
– Access to mortgage financing
– Expertise of LPS Brasil management
Pronto!: A Natural Consolidator
Acquisition strategy:
– Companies with expertise in their regional markets
– Companies with limited access to capital
– Well positioned in relevant markets
– Widespread network
Successful acquisitions through the years
– 18 acquisitions since July 2010 focused on the secondary market
– Benchmark for future partners
– Accretion
23
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
24
Differentiated Model: One-Stop-Shop
Winning Model
Secondary Market: a significant potential for origination
Over 50 own stores and 200 licensed real estate brokers in
11 states and the Federal District
Selective acquisitions to replicate the successful formula
used in the primary market
33% of Pronto!’s contracted sales are financed by
Credipronto!
Distinctive channel for clients in the secondary market
Over R$2 billion in financing
Incipient market in Brazil with huge expansion potential
59% of CrediPronto! transactions are originated through
Pronto!
Use of LPS Brasil’s platform and significant reduction in
CAPEX requirement
Focus
Relevance
Growth
Potential
Synergies
25
CrediPronto!
CrediPronto! achieved R$2.4 billion in financed volume
Financed Volume
(R$ MM)
*Does not include amortization.
209
322
1T11 1T12
54%
(R$ MM)
Accumulated Financed
Volume*
1,013
2,397
mar/11 mar/12
137%
Operational Highlights
26
Mortgages Portfolio
CrediPronto!
The Average Portfolio Balance in the 1Q12 was R$1.8 billion.
(R$ MM)
178
1.989
Opening portfolio balance Ending portfolio balance
Mar/12
1,017%
Jan/10
27
217 291
385 474
591 727
854
1,013
1,219
1,461
1,698
1,956
2.153
2.397
Accumulated Sales Volume *
CrediPronto!
(R$ MM)
CrediPronto! granted mortgage loans worth more than R$2.3 billion in its first years of operation
*Not including amortization / October, November and December are unaudited preliminary draft released on January 30th, 2012
10%
28
Credipronto!: Unique Partnership to Capture Mortgage Loan Market
Potential
Evolution of Origination (base 100 = Jan-10)1
Business Highlights
Profit Sharing with limited credit risk
Leverage on LPS Brasil’s points of sale
Differentiated process of approval and release of funds
Unprecedented credit in the market
Innovative Real Estate Financing Process
Notes: 1 ABECIP (as of December 30th, 2010) and Company. Ranking based on June/2011 origination 2 Excluding Caixa 3 Bacen
+ Market
Leader
Largest Private Bank
in Brazil
High Growth Potential – Real Estate Financing equals only 5% of Brazilian GDP2
Credit Analysis Assessment ofthe Property
Legal Analysis Issuance of theContract
Release ofResources
24 hoursUntil 3
workingdays
2 working
days
3 working
days
5 working
days
Efficiency in Release of Credit
CrediPronto! already has a Market Share of 5.7% among private banks (excluding Caixa)
It is responsible for more than 18% of the mortgage portfolio of Itaú
Total market financing 1Q12: R$11.6 billion
100
168 177
245 241
376 411 432 370
125 145 147 144 179 209 198 189
1,4% 1,9% 1,7%
2,4% 2,4% 3,0% 2,8% 3,1% 2,8%
-6,0%
-4,0%
-2,0%
0,0%
2,0%
4,0%
1T10 2T10 3T10 4T10 1T11 2T11 3T11 4T11 1T12
Credipronto! Mercado Market Share CDP!
29
Brazilian Real Estate Market
30
Growth 2007 - 2030
Significant Creation of Demand
Demographic Bonus Population Pyramid (millions of people)
Expansion of Class C (% of the population) Number of Families by Income Segment (millions)
40%
60%
80%
100%
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Economically active population = 15 – 64 year-old
Dependence Index
(8%) 78% 160% 233% 291% 433%
2003
2008
11%
49%
24%
16%
Classes A and B Class C Class D Class E
8%
37%
27%
28%
Source: IBGE, Bird, Febraban and FGV
31.7
15.5
8.4
3.3 1.1 0.3
29.1 27.6
21.8
11
4.3 1.6
Up to R$1k
R$1k to
R$2k
R$2k to
R$4k
R$4k to
R$8k
R$8k to
R$16k
Above
R$ 16k
2007A
2030E
31
Source: Goldman Sachs, Abecip, BCB
Mortgage Market
Mortgage Market as a % of GDP
Argentina
2%
Russia
2%
Brazil
5%
India
6%
China
11%
Mexico
11%
Chile
19%
France
38%
South
Africa
42%
Germany
48%
USA
81%
UK
88%
32
Growth Drivers
Housing deficit
– 7.2 million houses (2009)
Incipient mortgage loan market
Declining interest rates
Rising employees’ income
Growing availability of long-term funding
Increasing secondary market financing
Increasing family turnover
Market Potential for Real Estate Financing
Source: Bacen and ABECIP Notes: 1 Data from 2006, except for Brazil (2009) 2 FGV’s Center for Social Studies, 2010 3 Represents the number of times a family moves to a different house during their lifetime. Source: Credit Suisse
Mortgage Loan Access (% by Social Class)2
7.7%
5.0%
3.0%
1.7%
Classes A and B Class C Class D Class E
4.0x
1.8x
9.0 – 10.0x
G-7 Mexico Brazil
Family Turnover3
5.4
6.7
7.9
6.3 5.8
1991 2000 2006 2007 2008
Quantitative Housing Shortage (millions of homes)
33
2858
2109
1644
1383
Units Launched
Units Sold
Average (Units Sold/Launched) = 0,95
Average (Units Sold/Launched) = 1,04
Sales Speed Metropolitan Region of São Paulo
Units Launched and Sold SP Capital
Year Units Lauched Units Sold
2008 34,500 32,800 2009 30,100 35,800 2010 37,300 35,870 2011 37,650 28,320
02M12 2,060 3,180 34
R$/m2
Real Estate Market Overview – Prices
Source: EMBRAESP
* Launches occurred in residential vertical in SP Capital Jan/96 to Mar/12.
Nominal
INCC Adjusted
Evolution of Average Launches’ Prices in SP
R$/m2
1,480 1,480 1,680 1,710 1,860 2,120
2,450 2,770
3,160 3,170 3,380 3,290 3,550
3,930
5,300
6,750 6,840
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
20
10
20
11
1Q
12
4,970 4,650
5,020 4,840 4,810 5,070
5,350 5,200 5,340 4,900 4,940
4,570 4,510 4,660
5,900
6,990 6,870
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
20
10
20
11
1Q
12
35
Lopes’ Confidence Index
36
118
151
100
137
82
124
jan
/09
Jan
-09
Feb
-09
Mar
-09
Ap
r-0
9
May
-09
Jun
-09
Jul-
09
Au
g-0
9
Sep
-09
Oct
-09
No
v-0
9
De
c-0
9
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
De
c-1
0
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Au
g-1
1
Sep
-11
Oct
-11
No
v-1
1
De
c-1
1
Jan
-12
Feb
-12
Mar
-12
Expectation Index Lopes' Confidence Index Present Situation Index
(base: jan/2009=100)
Source: Lopes Market Intelligence
Lopes’ Confidence Index (LCI) – March/12
Lopes is the first company to create a Real Estate Consumer Confidence Index.
Lopes’ Confidence Index intend to measure clients confidence, so Lopes can follow and anticipate, in the short term,
housing purchase tendency.
The sample has 591 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)
March/12
37
Operational Highlights
38
Contracted Sales
(R$ MM)
Contracted Sales
Units Sold
In the 1Q12, We Achieved R$ 4.0 billion in Contracted Sales.
2,804 3,044
671,0
959,0
1Q11 1Q12
Primary Market Secondary Market
3,479 15%
5%
12,046
12,708
1Q11 1Q12
4,003
39
Breakdown of Contracted Sales
1.0
(24%)
1.3
(32%)
1.8 (44%)
(R$ BI)
Primary Market
50% 44% 42%
50% 56% 58%
2010 2011 1Q12
Breakdown – Contracted Sales 1Q12
Secondary Market Non-Listed Homebuilders Listed Homebuilders Top 10 clients
40
+14%
-34%
1Q12
3,611
1Q11
3,171
1Q12*
4,755
1Q11
7,171
* Value based on the previous Listed Homebuilders - does not include Living, JHSF and CR2 in the 1Q11 or 1Q12.
Evolution of Launches 1Q12
Evolution of Launches – Listed Homebuilders and Lopes
Listed Homebuilders
41
Breakdown Homebuilders
(R$ BI)
Breakdown Top 5 Clients Breakdown – Homebuilders
49% 53%
56%
51% 47% 44%
2010 2011 1Q12
Demais Clientes 10 Maiores Clientes
292 236 301
7.6% 9.5% 8.9%
7.1% 5.3% 6.2%
6.1% 5.2% 5.0%
6.1% 5.1% 4.4%
4.7% 4.0% 4.1%
2010 2011 1Q12
1st 2nd 3rd 4th 5th Other Clients Top 10 clients in sales Other Clients
Nº Homebuilders
42
Financial Highlights
43
1Q12 Financial Highlights
77.4
88.4
1Q11 1Q12
14%
Net Revenue
Net Income Attributable to
Controlling Shareholders¹
16.5
21.3
1Q11 1Q12
39%
EBITDA*
18.1
25.2
1Q11 1Q12
29%
21% 24%
23%
29%
44 ¹Shareholders of LPS Brasil through the LPSB3 share
*We consider now the EBITDA, excluding other operating expenses (revenues), that considers IFRS non-cash, as the company performance indicator. We recalculated all previous EBITDAs in the same
way. This will be our standart from now
1Q12 Results
Results 1Q12
(R$ thousand)
LAUNCHES PRONTO! CREDIPRONTO! CONSOLIDATED
Gross Service Revenue 73,405 22,724 4,496 100,625
Revenue from Real Estate Brokerage 69,780 22,724 4,496 97,000
Revenue to Accrue from Itaú Operations 3,625 - - 3,625
Earn Out - - - -
Net Operating Revenue 64,541 20,003 3,833 88,377
(-)Costs and Expenses (44,644) (14,670) (3,396) (62,710)
(-) Stock Option Expenses CPC10 (235) - - (235)
(-) Expenses to Accrue from Itaú (238) - - (238)
(=)EBITDA 19,424 5,333 437 25,194
EBITDA Margin 30.1% 26.7% 11.4% 28.5%
(+/-) Other nonrecurring results - - - -
(-)Depreciation and amortization (7,685) (5,923) (12) (13,620)
(+/-) Financial Result 18,682 3,262 56 22,000
(-)Income tax and social contribution (10,078) (1,478) (426) (11,982)
(=)Net income in period 20,343 1,194 55 21,592
Net Operating Margin 31.5% 6.0% 1.4% 24.4%
(=)Net Income in Period
- Non-controlling Shareholders (247)
- Controlling Shareholders 21.345
Net Margin after Minority Interest 24.2%
45
CrediPronto!
*The managerial P&L measures the results of the JV. Olimpia’s Results and all Revenues and Expenses incurred by Itau are considered.
• The numbers of the managerial P&L were audited for 2011 by Ernst&Young and, due to its managerial nature, it does not follow accounting standards.
P&L*
2011 (R$ thousands)
Total
Amount Financed 1,270,674
Opening portfolio 707,053
Closing portfolio 1,767,940
Average portfolio balance1 976,864
Financial Margin 24,401
% Spread 2.5%
(-) Sales taxes -2,194
(-) Total costs and expenses -37,622
(-) Back Office expenses -6,729
(-) Sales expenses -20,124
(-) Commissions -12,547
(-) Others -187
(+/-) Correspondent bank -
(+) Other revenues (Financ.) 1,365
(-) Allowance for doubtful accounts (ADA) 600
(-) Taxes -6,419
(=) Net result -21,835
% Net Margin -98.3%
50% Profit Sharing -10,918
46
Allowance for Doubtful Accounts
Example of P&L with a financing contract for a $200 unit:
Ex: Sale for
$300
Ex: Sale for
$150
Month 8
$100
-$60
+$200
$240
Month 1
$100
-$60
-
$40
Month 2
$100
-$60
-$5
$35
Month 5
$100
-$60
-$25
$15
+$100: Profit for the bank
-$50: Loss of the bank
Sale of the recovered property
Recovery of
Property
¹ Including general allowance
Default
Financial Margin
Expenses¹
Specific Allowance
Result
47
Additional Information
48
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
* The seasonality can not be verified in 2008, because of the effects of the world financial crisis.
17% 18%
14%
23%
15%
19% 19% 21%
31%
22%
32%
24% 25% 27%
25% 22% 23%
29% 28% 26%
24%
37%
29%
41%
16%
33% 30% 30%
2005 2006 2007 2008* 2009 2010 2011
1Q 2Q 3Q 4Q
49
1Q Average:
18%
Ownership Structure
Total of 56,668,005 common shares
Ownership Structure Post-IPO
33%
25% 1%
41%
Rosediamond
Chairman and Vice Chairman
Management
Free Float
50
