cr2 apimec final eng
TRANSCRIPT
Public Meeting - APIMEC
October, 2010
Business Model
Pure Play DeveloperPartnership With
Control on Each Project
2
Focus on Low-Income Segment
Strong Project Origination Platform
Ability to Anticipate Macro Trends
Ownership Breakdown – 2Q10
Board of Directors and Executive Officers
Board of Directors and Executive Officers
Free Float
54,7%
Free Float
54,7%
3
45,3%45,3%
Itaú Unibanco
20,6%
Itaú Unibanco
20,6%
Autonomy Capital
10,6%
Autonomy Capital
10,6%
ADRs
9,2%
ADRs
9,2%
Bovespa
14,3%
Bovespa
14,3%
54,7%54,7%
400,0 347,0
544,7
Total Launched PSV (R$mm)
Launched PSV by Region
400,0
22,1
183,0
544,7
55,7 42,0
164,0
64,1 55,7
1S102009200820072006
Capital and Metropoiltan Area of Rio de Janeiro Metropolitan Area of São Paulo
4
404,7
347,0
544,7
Total Launched PSV (R$mm)
Launched PSV by Segment
400,0
64,1
347,0
140,0 55,7
64,1 55,7
1S102009200820072006
Economy Middle-Income
5
Project Conclusions
We intend to reach the end of 2010 with R$702.5mm of PSV delivered, 69% of the total launched
426.7
Delivery Schedule: PSV (R$mm)
13 projects (69% of PSV Launched) 2,697
Delivery Schedule: Units
4.489 Units
6
267.2 227.2
197.7
48.7
159.4
48.6 54.3
8.3
275.8 252.0
57.0
Delivered: from 2008 to 1Q10
2H10 2011 2012
CR2 Partners
1,792 2,010
466
96%
91%
87%
67%
Delivered: from 2008 to 1Q10
2H10 2011 2012
Sold Inventory
Cash Position
238.7
273.8 282.8 Cash (R$ mm)
IPO: R$307,5 mm
(R$284,5 mm ex - IPO expenses)
7
54.0 45.4 35.4 36.1 34.0 39.0 43.6
86.9
133.6
178.4
49.7 51.4
2T101T104T093T092T091T094T083T082T081T084T073T072T071T072006
188,3
317,0
221,7
Total Contracted Sales (R$ mm)
Total Contracted Sales
116,6
19,9
1S102009200820072006
8
Inventory at Market Value and SoS
Period (R$
mm)
Inventory at the
Beginning of Period
Launches (CR2's
share)
Contracted Sales
(CR2's share)
Inventory at the
End of PeriodSoS
Contracted Sales
from Launches in the
Period
Inventory's
Contracted
Sales
2006 0.0 33.4 11.9 21.5 35.7% 11.9 0.0
1Q07 21.5 62.4 31.5 52.4 37.6% 23.6 7.9
2Q07 52.4 20.4 18.5 54.3 25.4% 8.8 9.7
3Q07 54.3 63.1 32.4 85.0 27.6% 20.4 12.0
4Q07 85.0 170.3 59.2 196.1 23.2% 39.3 19.9
1Q08 196.1 47.9 27.2 216.8 11.1% 15.9 11.3
2Q08 216.8 131.3 144.4 203.7 41.5% 93.7 50.6
9
2Q08 216.8 131.3 144.4 203.7 41.5% 93.7 50.6
3Q08 203.7 113.9 67.6 250.0 21.3% 44.2 23.4
4Q08 250.0 0.0 12.6 237.5 5.0% 0.0 12.6
1Q09 237.5 0.0 19.1 218.4 8.0% 0.0 19.1
2Q09 218.4 0.0 34.6 183.8 15.8% 0.0 34.6
3Q09 183.8 0.0 28.0 155.8 15.2% 0.0 28.0
4Q09 155.8 56.7 61.9 150.5 29.1% 31.5 30.4
1Q10 173.4* 0.0 58.4 115.0 33,7%* 0.0 58.4
2Q10 120.3* 0.0 31.5 88.9 26,1%* 0.0 31.5
22% of Shareholder’s Equity
SoS (%CR2) = [Contracted Sales in the period / (Inventory at beginning of period + launches of the period net of physical exchange)]* After price adjustment
Receivables from Clients
148,79432%
150,46932%
158,10834%
10,8202%
Total Receivables (R$ 000)
Projects Delivery Forecast
Performed Receivables
2Q10
2011
2012
R$300mm - 64% of portfolio
On/Off Balance Receivables (R$ 000) 2Q10 1Q10
Receivables from Real Estate Developments and Sales
Short Term 144,256 147,984
Long Term 238,481 213,955
(+) Total 382,737 361,939
10
170,45036%
297,74264%
Total Receivables (R$ 000)
Financing Bank
CEF
Private Banks
Credits to be
transferred during
construction
(+) Total 382,737 361,939
Receivables to be Recognized
Short Term 32,208 61,115
Long Term 53,246 88,360
(+) Total 85,454 149,475
Short Term Total 176,464 209,099
Long Term Total 291,727 302,315
(=) Total Receivables 468,191 511,414
Receivables from Banks
Disbursements x Receivables from CEF Contracted Units x Credits Transferred
3,227 units contracted = 8 projects with a total PSV of R$304.3mm
1,948 credits transferred up to 2Q10
Another 138 credits transferred up to August 17, for a total of 2,086 units (65% of the total) andequivalent to R$188.3mm on mortgages
R$125,7mm in cumulative disbursements, R$25.2mm of which in 2Q10 and R$9.4mm up to August 17
Accounts Receivable from CEF on August 17: R$79.5mm
11
9,8
22,9 26,1 23,5 25,2
9,4 8,8
29,7
43,2 47,4
72,5
79,5
2Q09 3Q09 4Q09 1Q10 2Q10 17/08/10
Disbursements x Receivables from CEF
(R$mm)
Disbursements R$000 Receivables (balance) R$000
495
967
1.274
1.591
1.9482.086
2.595 2.595 2.595 2.595
3.227 3.227
19%
37%
49%
61%60%
65%
2Q09 3Q09 4Q09 1Q10 2Q10 17/08/10
Contracted Units x Credits Transferred
Credits Transferred to CEF Units Contracted by CEF %Transferred
Land Bank
Land Bank Total PSV = R$ 3,2bi
Segmento de Renda (R$mm)Land Bank Ex-Cidade Paradiso Por Região
12
2.180 69%
52016%
1856%
296 9%
Cidade Paradiso
Economy
0-3 Wages (MCMV)
Comercial
931 93%
707%
Land Bank Ex-Cidade Paradiso Por Região
(R$mm)
Capital and Metropolitan Area of Rio de Janeiro
Metropolitan Area of São Paulo
Land Bank
100% of land bank in the economy segment
Development City (State) SegmentAverage Price
(R$'000)Units
Total PSV
(R$mm)
CR2's PSV
(R$mm)% CR2
Splendore Valqueire II Rio de Janeiro (RJ) Economy 188 160 30 24 80%
Jardim Paradiso IIB - III Nova Iguaçu (RJ) Economy 68 963 65 61 93%
Manaú 2 Guarulhos (SP) Economy 86 420 36 31 86%
Pq. das Águas II São Gonçalo (RJ) Economy 162 1,152 187 149 80%
Top Life Village (Colônia Paraíso) S. J. Campos (SP) Economy 87 392 34 29 86%
Pq. das Águas III São Gonçalo (RJ) Economy 171 492 84 67 80%
Pq. das Águas IV São Gonçalo (RJ) Economy 89 942 84 67 80%
13
0-3 minimum wages MCMV: Project already approved by the Municipal Authorities and inprocess of approval by CEF
Pq. das Águas IV São Gonçalo (RJ) Economy 89 942 84 67 80%
Cidade Paradiso Nova Iguaçu (RJ) Economy 72 30,183 2,180 2,180 100%
Total 78 34,704 2,700 2,609 97%
Development City (State) SegmentAverage Price
(R$'000)Units
Total PSV
(R$mm)
CR2's PSV
(R$mm)% CR2
Sta. Cecília – Madureira Nova Iguaçu (RJ) 0-3 minimum wage 49 3,780 185 185 100%
Total 49 3,780 185 185 100%
Land Bank
Development City (State) Segment Total Area (m2)
Average Price
(R$/m2)
Total PSV
(R$mm)
CR2's PSV
(R$mm)% CR2
Barrartes Rio de Janeiro (RJ) Comercial 25,000 10,000 250 175 70%Niterói Plaza Niterói (RJ) Comercial 6,500 7,000 46 32 70%
Total 31,500 9,381 296 207 70%
14
Net Operating Revenue - Quarterly
130.7
100.7 101.4
75.2 71.8 75.9
Net Operating Revenue (R$ mm)
15
75.2 71.8
51.7
75.9 69.0
58.6
27.2
2T101T104T093T092T091T094T083T082T081T08
Net Operating Revenue - Yearly
231.4
300.1
230.7
Net Operating Revenue (R$ mm)
16
1S102009 2008
Net Profit CR2 - Quarterly
21.2
Net Profit CR2 (R$ mm)
17
7.4 7.2 5.3 5.0
3.6
1.3
11.1
4.8
0.5
2T101T104T093T092T091T094T083T082T081T08
Net Profit CR2 - Yearly
37.6
Net Profit CR2 (R$ mm)
18
14.6 15.1
1S102009 2008
Delivered Projects: 2008
Green Park 3000/4000
Location: Barra da Tijuca (RJ)
Segment: Middle-Income
Units: 240
PSV: R$55,7mm
% Sold: 100% (Aug-10)
% Disbursed/Paid Down: 90% (Aug-10)
19
Via Parque
Location: Caxias (RJ)
Segment: Economy
Units: 99
PSV: R$4,9mm
% Sold: 100% (Aug-10)
% Disbursed/Paid Down: 100% (Aug-10)
Delivered Projects: 2009
Verano I
Location: Barra (RJ)
Segment: Middle-Income
Units: 395
PSV: R$130,0mm
% Sold: 94% (Aug-10)
% Disbursed/Paid Down: 75% (Aug-10)
Splendore Valqueire I
Location: V. Valqueire (RJ)
Segment: Middle-Income
Units: 120
PSV: R$15,9mm
% Sold: 97% (Aug-10)
% Disbursed/Paid Down: 85% (Aug-10)
20
Mirante Bonsucesso
Location: Guarulhos (SP)
Segment: Economy
Units: 368
PSV: R$28,4mm
% Sold: 98% (Aug-10)
% Disbursed/Paid Down: 93% (Aug-10)
Delivered Projects: 1H10
Barra Allegro
Location: Barra da Tijuca (RJ)
Segment: Middle-Income
Units: 144
PSV: R$41,5mm
% Sold: 99% (Aug-10)
% Disbursed/Paid Down: 51% (Aug-10)
Verano II
Location: Barra (RJ)
Segment: Middle-Income
Units: 346
PSV: R$105,0mm
% Sold: 95% (Aug-10)
% Disbursed/Paid Down: 17%
21
Villaggio del Mare
Location: Recreio (RJ)
Segment: Middle-Income
Units: 120
PSV: R$45,3mm
% Sold: 97% (Aug-10)
% Disbursed/Paid Down: 36% (Aug-10)
Delivered Projects: 3Q10
Villagio do Campo - Lote 2
26% over total
Location: Campo Grande (RJ)
Segment: Economy
Units: 262
22
Units: 262
PSV: R$17,0mm
% Sold: 98% (Aug-10)
% Disbursed: 74% (Aug-10)
Delivered Projects: 3T10
Jardim Paradiso I – Lotes 1 a 4
58% over total
Location: Nova Iguaçu (RJ)
Segment: Economy
23
Units: 308
PSV: R$21,2mm
% Sold: 98% (Aug-10)
% Disbursed: To begin in 4Q10
57,1354,67
53,5843,12
37,9536,0035,65
21,6421,61
17,7314,74
João Fortes
Lopes
Helbor
Camargo
Trisul
EZ Tec
BR Brokers
Direcional
PDG Realty
MRV
Brookfield
% YTD
CRDE3 Performance - 2010
14,7412,54
7,147,06
4,671,37
-1,00-3,37
-4,39-7,76-8,05
-12,27
Brookfield
IMOB
Even
Rossi
CR2
IBOV
Rodobens
Tecnisa
Gafisa
Cyrela
Inpar
JHSF
24
*Data base: 10/22/2010
23,7421,35
20,3717,99
13,8010,17
8,545,965,895,79
4,93
Lopes
Trisul
Camargo
BR Brokers
Direcional
CR2
Helbor
Inpar
Rodobens
JHSF
Even
% 1 Mês
CRDE3 Performance - 2010
25
*Data base: 10/22/2010
4,933,08
2,742,33
1,760,55
0,18-1,02
-1,87-3,66
-4,71-7,76
Even
Tecnisa
Gafisa
PDG Realty
IBOV
IMOB
Rossi
João Fortes
EZ Tec
Brookfield
MRV
Cyrela
Valuation: Price/Book Value*
1,54
1,52
1,34
1,29
1,15
0,85
0,76
Brookfield
Tecnisa
Rodobens
Trisul
Camargo
Inpar
CR2
P/BV
26
3,06
2,53
2,29
2,15
1,93
1,79
1,66
1,64
1,63
MRV
Direcional
Cyrela
PDG
Helbor
Rossi
Gafisa
Even
Eztec
*Data base: 10/22/2010
Investor Relations
Rogério FurtadoChief Financial and Investor Relations Officer
Paulo Castro
Financial and IR Coordinator
Contact:
www.cr2.com.br/ir
IR Contact
27
www.cr2.com.br/ir
Phone: +55 (21) 3095-4600 / 3031-4600
This presentation contains certain statements that are neither reported financial results or other historical information. They are forward-looking statements.
Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by
the statements. Many of these risks and uncertainties relate to factors that are beyond CR2’s ability to control or estimate precisely, such as future market
conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators, the Company's ability to continue to obtain
sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or
technological trends or conditions, inflation and consumer confidence, on a global, regional or national basis.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. CR2 does not
undertake any obligation to publicly release any revisions to these forward looking statements to reflect events or circumstances after the date of this
presentation.