cyrela - corporate presentation - november 2009

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Ile St Louis São Luis – MA Launched in August 2009 Company Presentation November 2009

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Corporate Presentation - November 2009

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Page 1: Cyrela - Corporate Presentation - November 2009

Ile St LouisSão Luis – MA Launched in August 2009

Company Presentationp yNovember 2009

Page 2: Cyrela - Corporate Presentation - November 2009

Auge São Paulo – SP Launched in September 2009

ContentsContents

Brazilian Real Estate Sector Overview

Company Overview

Brazilian Real Estate Sector Overview

Market Intelligence and Launched projectsg p j

Living

Outlook for the future

3Q09 Results

Appendix

Page 3: Cyrela - Corporate Presentation - November 2009

Novo Jardim Family ResortSanto André - SPLaunched in September 2009

CompanyO iOverview

Page 4: Cyrela - Corporate Presentation - November 2009

Cyrela at a Glance: Scale, Execution Capacity and Leadership

Largest homebuilder in Brazil with almost 50 years of experienceLargest homebuilder in Brazil, with almost 50 years of experience

Nationwide footprint in all income-levels, with proven capacity to develop market segmentssegments

Fully integrated real estate developer from construction to sales

Strong operating performance, with 48,400 units sold from 2005 to 9M09 representing a PSV of R$ 14.9 bn (Cyrela+partners) or R$ 10.2 bn (Cyrela’sstake)stake)

4

Outstanding track-record with unique positioning to capture growth opportunities

Page 5: Cyrela - Corporate Presentation - November 2009

Solid Track-Record of Growth and Value Creation

Strengthening Market PositionStrengthening Market Position Accelerating Geographic and Segment ExpansionAccelerating Geographic and Segment Expansion

(1) Value created for shareholders since IPO (Base 100) - R$

4 3924,612

4,850(2)US$100 invested in the IPO would be worthUS$ 432 currently

US$100 invested in the IPO would be worthUS$ 432 currently 211

200

300

400345

4,392100

100

210

100

0

100

200

Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09

Pre-Sales Contracts (R$ million, 100%)1,023 1,915

BRL Debenture

CYRELA (CYRE3+CCPR3) Ibovespa CYRE3 (Since FO 2006)

1994: Brazil Realty,a JV with IRSA(George Soros) is

2002: Cyrelaacquires IRSA’sstake in Brazil

BRL Debentureoffering (US$190mm)

Sale ofstake in Agra

CCP’s spin-offLaunching of the first Living product

Follow-On(US$382mm)2000: Cyrela

starts partnership with RJZ in RJ

1962:

(George Soros), is founded

1998: BrazilRealty issuesinternationalb d

stake in BrazilRealty

Merger ofCyrela withBrazil Realty

BRLDebentureOffering(US$247mm)

BRL DebentureOffering (US$280mm)

stake in Agra(US$170mm)

Cyrela isfounded

1996: BrazilRealty goespublic

bond

IPO(US$397mm)

JoinedIbovespaIndex

(US$247mm)

5(1) Source: Bloomberg, as of 13 October, 2009(2) Considering mid point of 2009 guidance (from R$4.6bn to R$5.1bn – 100% stake)

200520051962 - 20041962 - 2004 20062006 20072007 20082008 20092009

Page 6: Cyrela - Corporate Presentation - November 2009

What has been done since the IPO

PSV (R$ million) Sales (R$ million) Units Launched

4x 4,6125x 16,8757x

1,2114,827

2005 2008

4x

1,023

,

2005 2008

2,538

16,875

2005 2008

7x

Achievements1Achievements1

CAGR 2005 – 2008PSV: 59% (total 299%)Strong growthStrong growth

Sound track record in innovation► Partnerships and Joint VenturesPSV: 59% (total 299%)

Sales: 65% (total 351%)Units launched: 88% (total 565%)

Strong growthand unparallel

execution

Strong growthand unparallel

execution

► Partnerships and Joint Ventures► Geographical expansion ► In house sales force► Establishment of Living in 2006

Management team fully professionalized with deep knowledge of the real estate industryManagementManagement

g

Committee driven decision making process

Leverage upon partnership on local industry expertise

Management support

Management support

Strongest balance sheet in the industry, with capacity to grow in segments from low-income to mid-high

EBITDA margin among the highest of industry (Integrated business model)Solid balance

sheet and profitability

Solid balance sheet and

profitability

6(1) 100% stake

g g g y ( g )

Capacity to achieve excellent results with very low leverage compared to the Industryprofitabilityprofitability

Page 7: Cyrela - Corporate Presentation - November 2009

Geographical Expansion

Presence in 55 cities in 17 states of Brazil and in Buenos Aires in Argentina200920092006200620052005 200920092006200620052005

AM

RR

MAPA

AP

CEAM

RR

MAPA

AP

CEAM

RR

MAPA

AP

CE

MG

GO

MT

AC

ROBA

PI

PA

TO

RN

PE

ALSE

MS ES

DF

PB

MG

GO

MT

AC

ROBA

PI

PA

TO

RN

PE

ALSE

MS ES

DF

PB

MG

GO

MT

AC

ROBA

PI

PA

TO

RN

PE

ALSE

MS ES

DF

PB

RS

SC

PR

SP RJ

BuenosAires

RS

SC

PR

SP RJ

RS

SC

PR

SP RJ

+ +

In a short period of time Cyrela has achieved tremendous success

% ofBrazilian

GDP Covered

% ofBrazilian

GDP Covered 90.5%(1)80.5% 47.9%

7

In a short period of time, Cyrela has achieved tremendous success in its geographical growth strategy

(1) Considers 2007 data, most recent.Source: Company and IBGE.

Page 8: Cyrela - Corporate Presentation - November 2009

Prospects of strong growth with unique track record

Increase in sales speed in most relevant income segments: pre-crisis levels Living benefits from Housing Program “Minha Casa Minha Vida”Living benefits from Housing Program Minha Casa, Minha VidaLowest interest rate in 50 years will be positive for the activity in the mid-high segmentsLow execution risk

► 15 construction platforms distributed throughout Brazil► Constructed area grew from 232 thousand sq.m in 2005 to 1.0 mm sq.m in 2008► Conservative cash-flow managementg► 161 construction sites ongoing in Sep/2009

Constructed Area per YearConstructed Area per Year Units DeliveredUnits DeliveredPrivate area in thousands of sq.m.

ForecastedHistorical

ForecastedHistorical (until 9M09)

18,682

1,7231,917 7,661

11,577

232 372594

1,002

1,723

3,915 2 211

3,178

8Source: Company data

232

2005 2006 2007 2008 2009e 2010e

2,211

2007 2008 2009e 2010e

Page 9: Cyrela - Corporate Presentation - November 2009

Cyrela Brazil Realty

2005 20072006 2008 9M09

Launches Pre-sales

R$ 1.2 bn

R$ 1.0 bn

R$ 5.4 bn

R$ 4.4 bn

R$ 2.9 bn

R$ 1.9 bn

R$ 4.9bn

R$ 4.7bn

R$ 3.1bn

R$ 3.0bn

LandbankLow income units

3.0 mm sq.m.

0

8.8 mm sq.m.

6.7 thd

4.9 mm sq.m.

720

11.2 mm sq.m.

10.5 thd

11.9 mm sq.m.

6 thd

EBITDA Margin*Gross Margin

27.1%

48.5%

22.9%

41.2%

22.3%

42.2%

20.1%

40.1%

22.6%

34.9%

# Homebuilders listed

Net Margin*

2

23.2%

21

24.7%

4

21.7%

20 20

13.7% 18.0%

Market Cap CyrelaMarket Cap of the Industry

R$ 2.4 bn

R$ 6.0 bn

R$ 8.6 bn

R$ 48.1 bn

R$ 4.5 bn

R$ 10.0 bn

R$ 3.3 bn

R$ 13.4 bn

R$ 8.5 bn

R$ 40.9 bn

776EmployeesNumber of cities

202

3

529

47

327

8

514

55 55

9

1,150

*Adjusted for IPO expenses and according to BR GAAP before Law 11,638 until 2007.

Seller Brokers & Team 100 743200 637

Page 10: Cyrela - Corporate Presentation - November 2009

Vitória Pirituba GaivotaSão Paulo, SPLaunched in September 2009

BrazilianBrazilianReal Estate

Sector Overview

Page 11: Cyrela - Corporate Presentation - November 2009

Favorable Macroeconomic Conditions

Mortgage Loans Funding (R$ bn)Mortgage Loans Funding (R$ bn) Unemployment Rate Variation (‘000 people)Unemployment Rate Variation (‘000 people)2,20025045.8

1 200

1,400

1,600

1,800

2,000

0

50

100

150

200

10.5

25.2

40.615.0

400

600

800

1,000

1,200

-200

-150

-100

-50

0

Level (th people) (LHS)

Accumulated Last Twelve Months (RHS)

1.9 1.9 1.8 2.2 3.0 4.9 9.318.3

30.0 30.8

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

GDP Growth (%)GDP Growth (%) Consumer Confidence IndexConsumer Confidence Index

200-250 Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E

SBPE FGTS

11

120

125

Sep/09

Consumer confidence returns to pre-crisis level5.7

5.1 4.8

100

105

110

115p

111.0111.73.2

4.08

90

95

Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-092005 2006 2007 2008

0.1

2009E 2010E

11

Despite international crisis, macroeconomics in Brazil shows strong recovery trendsSource: Brazil Central Bank, IBGE, Credit Suisse, FGV .

Page 12: Cyrela - Corporate Presentation - November 2009

Real Estate Financing: Still a Considerably Small Percentage of Brazilian GDPg

Total Real Estate Financing in Brazil (R$ billion)Total Real Estate Financing in Brazil (R$ billion) Total Real Estate Financing (% of GDP)Total Real Estate Financing (% of GDP)

83.1%76.9

58.6%

59.2%

45 9

63.3

32 2%

51.3%

25 829.1

35.7

45.9

18.0%

32.2%24.4 25.1 25.8

2.4%

13.0%

2002 2003 2004 2005 2006 2007 2008 Jul-09

Source: Spanish Mortgage Association, Central Bank of Brazil and ABECIP (Nov/08)

Source: Central Bank of Brazil, Caixa Econômica Federal, and Câmara Brasileira da Indústria da Construção

12

Significant potential growth for Real Estate financing in Brazil

Page 13: Cyrela - Corporate Presentation - November 2009

A Booming Real Estate Market: Strong Fundamentals

The Brazilian real estate market is poised to benefit from a favorable environmentLow Supply of UnitsLow Supply of UnitsHigh Demand for HousingHigh Demand for Housing Low 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 Unit)1. Population and families

In millions Persons

5.46.7 7.2Year

2007

2017E

Families

60.3

75 6

Population

189.1

211 2

Personsper family

3.1

2 8

4 N b f H M P

1991 2000 2009

2017E

2030E

75.6

95.5

211.2

233.6

2.8

2.4

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

BrazilBrazil

MexicoMexico

1.8x1.8x

4.0x4.0xup 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 1.4 5.9

-0.4%

3.9%

7.1%

Cyrela is uniquely positioned to take advantage of the positive Brazilian real estate environment

G-7G-7 9-10x9-10xTotal 60.3 95.5 2.0%

13

Cy e a s u que y pos t o ed to ta e ad a tage o t e pos t e a a ea estate e o e t

(1) Considers demand in excess of supply.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.

Page 14: Cyrela - Corporate Presentation - November 2009

Impact for Cyrela: The future is now

I t l I t l

20052005 20082008 20092009

> R$ 4,8005.7 mm families10%

Incremental Demand (vs. 2005):+24.0 mm families

Monthly Income

Monthly Income

Incremental Demand (vs. 2005):+35.7 mm families

Monthly Income

From R$1,200 to R$4,80022.4 mm families

> R$1,40028.8 mm families

39%

> R$1,40041.4 mm families

families

47%

67%67%

~30 millionfamilies

< R$1,20029.3 mm families

< R$1,40032.1 mm families51%

53%

< R$1,40020.4 mm families

33%

Minimum monthly family income to purchase a property

TR+9%30 years

TR+14%10 years

families

TR+5%1

30 years

Cyrela’sCyrela’s

Cyrela’s addressable market increased from 10% to 67%

Cyrela sLowest

Ticket perunit available

Cyrela sLowest

Ticket perunit available

R$ 80,000.00R$ 90,000.00R$ 110,000.00

14

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).(1) Within Minha Casa Minha Vida Program

Page 15: Cyrela - Corporate Presentation - November 2009

Low-Income Segment: Renewed Growth Opportunity

Minha Casa, Minha Vida program - Potential demand growth in BrazilLow 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

93 291105,199

117,107

92 700 93 309 97,122109,509

121,896

57,08364,505 59,104

71,32081,382

93,291

78,80090,400 92,700 93,309

84,73597,122

3MW 4MW 5MW 6MW 7MW 8MW 9MW 10MW

419 558 698 837 977 1,116 1,256 1,395Max monthly installment

Effectiverate

(p.a.)5.12% 5.12% 5.12% 6.12% 8.47% 8.47% 8.47% 8.47%

(R$)

15Source: IBGE (Brazilian Institute of Geography and Statistics) and Company data

Minha Casa, Minha Vida program enables millions of families to purchase houses

Page 16: Cyrela - Corporate Presentation - November 2009

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 MW

1,3951,395 1,8601,860 2,3252,325 2,7902,790 3,7203,720 4,1854,185 4,6504,650Minimum wage (R$) 3,255

7 MW

3,255

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%

Max Installment - 30% (R$)

Effective Rate (p.a.)

977

8.47%

977

8.47%

300300 300240 240240 240240 240240 240240 240240

90%90% 90%100% 100%100% 100%100% 100%100% 100%100% 100%100%

Term (months)

Loan to Value (%)

240

100%

240

100%

55,80050,699 74,40061,705 83,70059,104 91,30971,320 97,12293,291 109,509105,199 121,896117,107

23,0006,384 16,0002,800 9,000- 2,000- - - - - - -

Maximum financing (R$)

Maximum Incentive (R$)

84,73581,382

-

With the Program

Before the Program

78,80057,083 90,40064,505 92,70059,104 93,30971,320 97,12293,291 109,509105,199 121,896117,107Purchase Power (R$) 84,73581,382

16Source: IBGE (Brazilian Institute of Geography and Statistics) and Company data

Page 17: Cyrela - Corporate Presentation - November 2009

Financing: Interest and Term Impact

Model:Monthly Installment (R$)

Model:

Unit Value: R$ 120,00010 15 20 25 30

12% 1377 1152 1057 1011 98711% 1322 1091 991 941 914

Loan Term (years)

%)

Loan-To-Value: 80%

Loan: R$ 96,000

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 576te

rest

Rat

e (%

Loan: R$ 96,000

Mortgage Effort: 30%

6% 1066 810 688 619 5765% 1018 759 634 561 5154% 972 710 582 507 4583% 927 663 532 455 4052% 883 618 486 407 355

Rea

l Int

Example

Rental : R$800 per monthMinimum Wages Required (monthly salary)

Loan Term (years)Rental : R$800 per monthAnnual Yield: 8%

Equivalent to Loan Instalment with

10 15 20 25 3012% 10 8 8 7 711% 9 8 7 7 710% 9 7 7 6 6(%

)

Loan Term (years)

Real Interest Rate at 8% and 20 years term.

9% 9 7 6 6 68% 8 7 6 5 57% 8 6 5 5 56% 8 6 5 4 45% 7 5 5 4 4In

tere

st R

ate

17

5% 7 5 5 4 44% 7 5 4 4 33% 7 5 4 3 32% 6 4 3 3 3

Rea

l

Page 18: Cyrela - Corporate Presentation - November 2009

Dez CuruçáSão Paulo, SPLaunched in July 2009

MarketMarketIntelligence

andLaunchedLaunchedProjectsj

Page 19: Cyrela - Corporate Presentation - November 2009

Sales Performance – Residential – 2009

São Paulo Rio de Janeiro(R$ million) (R$ million)

2,556 1,6044,8918,289

MarketCyrela

961 2219611,386 961

Launches in RJ

221

Pre-Sales in RJ

961

Pre-Sales in SP

,386

Launches in SP

17% 20% 15% 14%17% 20% 15% 14%

Launches Pre-Sales Launches Pre-Sales

Cyrela’s stakes indicate strong sales performance in the main markets

19

Source: Cyrela MID

Page 20: Cyrela - Corporate Presentation - November 2009

Launches 2004 to 2009 - SP Metropolitan Region

Potential Sales ValueUnits(R$ million)

58 512

65,83317,422 17,822

19,074

18,864

7,030

9,61158,512

5,0527,282

11,274

21,524 28,9875,3078,567 10,129

9,0

9,0403,224

3,688 4,051 1,88628,78234,345 35,350 33,153

3 894

7,3265,626

3,119

3,320

3,939

2,012

7,997

9,6078,290

11,314 11,821 8,449 10,884 8,371 6,710

8,937 10,26912,721 15,517

1,098 1,117 753 972 760 698

1,803 1,928 2,6884,072 4,154

2,376

1,9773,242

3,8943,204

L R$ 3 500/

2004 2005 2006 2007 2008 9M09* 2004 2005 2006 2007 2008 9M09*

Luxury > R$ 3,500/sq.m.

S E i < R$ 1 900/

Economic > R$ 1,900/sq.m., <2,700/sq.m.

Middle > R$ 2,700/sq.m., <3,500/sq.m.

20

Super-Economic < R$ 1,900/sq.m.

Source: Cyrela MID

* 2009 price ranges updated to: Luxury > R$4500 sq.m., Middle > R$ 3000 sq.m. < 4500 sq.m., Economic > R$2,200 sq.m < R$ 3,000 sq.m and Super-Economic < R$ 2,200 sq.m.

Page 21: Cyrela - Corporate Presentation - November 2009

Launches 2004 to 2009 - RJ and Region

Potential Sales ValueUnits(R$ million)

2 363

4,419 13,350

15,911

1 8943,147

3,446

4,121

3,885 4,484

1,761 1,491 1,734

2,363

2,945 6,856 7,019 7,831

9,933

975 1,225 883

1,729

1,272 1,894

1,226 1,353

2,354 2,443

907 1,171 506 1,302 2,449 1,657 1,142

2,680 3,080

5,800 4,559 3,570

1,141

1,677 2,511 ,

3,666

221 203 69 219 211 249 200

759 659

980 791 577 273

509 690

,

391 659

L R$ 3 500/

2004 2005 2006 2007 2008 9M09 2004 2005 2006 2007 2008 9M09

Luxury > R$ 3,500/sq.m.

S E i < R$ 1 900/

Economic > R$ 1,900/sq.m., <2,700/sq.m.

Middle > R$ 2,700/sq.m., <3,500/sq.m.

21

Super-Economic < R$ 1,900/sq.m.

Source: Cyrela MID

Page 22: Cyrela - Corporate Presentation - November 2009

Successful Track Record: São Paulo and Rio de Janeiro

MenaraSão Paulo

CosmopolitanRio de JaneiroL h d M /06Launched: Aug/09

80% sold on the first day

PSV R$ 81.3 million

Launched: May/06

94% sold upon launch

PSV R$ 19.5 million254 units91% sold until Oct/09

R J di

114 units100% sold until Oct/09

NovAmérica (several phases)São PauloLaunched: Mar/09, May/09, Aug/09 and Sep/09

Reserva JardimRio de JaneiroLaunched: Oct/07

Antecipated phases due to g p

PSV R$ 599.0 million1,528 units86% sold until Oct/09

high demand

PSV R$ 368.2 million1,292 units74% sold until Oct/09

Escritórios EuropaSão PauloLa nched J l/08

CEO (1st phase)Rio de JaneiroL h d A /09Launched: Jul/08

100% sold in the launch weekend

PSV R$ 55 5 illi

Launched: Aug/09

90% sold in the first month

PSV R$ 112.9 millionff

22

PSV R$ 55.5 million254 units

469 offices92% sold until Oct/09

Page 23: Cyrela - Corporate Presentation - November 2009

Successful Track Record: Other regions

Urban Concept Residence and CommercialPorto Alegre – RS

Le ParcSalvador – BAg

Launched: Oct/08

62% sold in the first month

PSV R$ 105.9 million

Launched: Nov/07

739 units sold in 6 days

PSV R$ 502.5 millionPSV R$ 105.9 million180 flats and 204 offices83% and 92% sold until Oct/09

990 units89% sold until Oct/09

Acqua VerdeCuritiba - PRLaunched: Dec/08

Île Saint Louis (1st phase)São Luis - MALaunched: Aug/09

PSV R$ 72.9 million215 units85% sold until Oct/09

PSV R$ 57.8 million60 units90% sold until Oct/09

Grand Lider Olympus (phases I/II/III)Belo Horizonte MG

VitrineBelém PABelo Horizonte – MG

Launched: Jun/06, Aug/07, May/08

PSV R$ 347.9 million246 it

Belém – PALaunched: Jun/09

PSV R$ 37.0 million50 units96% ld til O t/09

23

246 units85% sold until Oct/09

96% sold until Oct/09

Page 24: Cyrela - Corporate Presentation - November 2009

Cyrela’s Highlights

NovAmérica with PSV of R$ 691.8 million, totally launched in 2009 with 1.7 mil units and 80% sold until November/2009

NovAmérica Office Park Varanda NovAmérica

Launched in Mar/09PSV: R$ 195.1 millionUsable area: 32,979 sq.m.Units: 548

Launched in Aug/09PSV: R$ 91.6 millionUsable area: 23,526 sq.m.Units: 324

NovAmérica Colorado Residence Park

NovAmérica CaliforniaCollection

Launched in Mar/09PSV: R$ 82.6 millionUsable area: 24,961 sq.m.

Launched in Sep/09PSV: R$ 139.1 millionUsable area: 36,696 msq.m.U it 224

NovAmérica Florida Residence Park

Units: 216

NovAmérica Michigan

Units: 224

Residence Park

Launched in May/09PSV: R$ 90.6 millionUsable area: 24,961 sq.m.

Launched in Oct/09PSV: R$ 92.8 millionUsable area: 24,961 msq.m.U it 216

24

, qUnits: 216 Units: 216

Page 25: Cyrela - Corporate Presentation - November 2009

Living Proven Success Track Record - Living

Minas VillageBelo Horizonte – MGLaunched: Apr/08

Vita PraiaSalvador – BALaunched: Feb/08

First Living Project in Minas Gerais

PSV R$ 49 9 illi

Launched: Feb/08

100% sold

PSV R$ 37.7 million

Avanti Vida

PSV R$ 49.9 million386 units

Paradiso

PSV R$ 37.7 million264 units

São PauloLaunched: Jun/09

60% sold in the day of l h

ParadisoSerra – ESLaunched: Oct/07

100% sold in 20 dayslaunchPSV R$ 46.5 million400 units89% sold until Oct/09

100% sold in 20 days

PSV R$ 60.3 million383 units

25

Page 26: Cyrela - Corporate Presentation - November 2009

Fatto Jardiim BotânicoSão Paulo – SPLaunched in September 2009

Living

Page 27: Cyrela - Corporate Presentation - November 2009

Paving the way to grow fast with a lean structure

1. Solid Track Record of Growth

2. Know-How of the Segment

7. Nationwide presence

3. Sufficient Supply of Raw6. Management Team

ith th 15 Supply of Raw Materials /

Services and Personnel

with more than 15 years experience in

the low income segmentsegment

4. Landbank Already Available

5. Secured Financing AvailableFinancing

27

Page 28: Cyrela - Corporate Presentation - November 2009

Short Cycle Process

Launch Go-ahead DeliveryFinancing

0 – 6 monthsPre-Launching

12M 16M Up to 20M8M4M0M

Construction

Living Corporate EnvironmentEngineeringProduct

Servicing the client from purchase onwards, through a single communication channel: the Customer Servicing Platform

Use of “Lean Construction” ConceptAssembly lineReduction of waste and costs

Simple, standard and easily executed projects focused on low income segment. Standardization of: g

In-house and trained sales forceFinancing availability through CaixaEconômica Federal

Enhancement of construction methods for popular housingIncreased productivity and quality during works execution

► Land acquisition► Real Estate Development► Sales g

Increased costumer satisfactionPrice defined by product (not by sq.m.)

► Construction► Customer Relationship

Prices from R$90,000 to R$ 200 000

Source: Company

15% cost reduction expected200,000Units from 45sq.m. to 75sq.m

28

Source: Company

Page 29: Cyrela - Corporate Presentation - November 2009

Low Income Operation

Independent activity in all steps of the business:

L d i iti C t tiLand acquisition

Real Estate Development

Sales

Construction

Customer Relationship

100% Financing with balance transfer

Prices up to R$ 90,000 Prices from R$90,000 to R$130,000

Prices from R$130,000 to R$200,000

Líber, Mérito and Avanti Clube

Units from 45sq.m. to 62sq.m.

1 parking space

Living, Vitória, Dez, Parque dos Sonhos, and Avanti VidaUnits from 45sq.m. to 62sq.m.P ki ti l

Fatto, Avanti and Garden

Units from 48sq.m. to 75sq.m.

1 parking space

Eligible for Minha Casa Minha Vida financing

100% financed

Parking space optionalEligible for Minha Casa Minha Vida financing100% financed

Eligible for SFH financing

80% financed

29

Well shaped for the low-income segmentSource: Company

Page 30: Cyrela - Corporate Presentation - November 2009

Economic Construction Concept

‘’Lean Construction’’ Concept Living’s Concept

Simple standardized projects, easily

executed, and focused on process

Market research Partners + R&D Center

management

Synergy gains from the integration of Product Technology

product development, technology and

production process Production process

Architecture

Better relationship between designers,

manufactures and construction

Industrial management

Integrated process management

This new concept allowed Living to be

competitive in the lower segments of

management

g

the pyramid

30

Page 31: Cyrela - Corporate Presentation - November 2009

Living’s Historical Figures

Over 23,000 units launched from December/2006 to September/2009

Units launchedUnits launched Units soldUnits sold

13,500

11,000

6,666

10,4597,533

5 9678,934

5,333

,

720

5,967

2006 2007 2008 2009E 2006 2007 2008 2009E

3905,077 5,667

Launches (R$ million)(1)Launches (R$ million)(1) Sales (R$ million)(1)Sales (R$ million)(1)

Achieved Estimate Achieved Estimate

1,600

1,499 806

1 247492

1,300

85

884

794

44641

1,247

808

31Note: 1 Considering 100% stake

Achieved Estimate Achieved Estimate

2006 2007 2008 2009E 2006 2007 2008 2009E

Page 32: Cyrela - Corporate Presentation - November 2009

Living - Construction Method

Use of “Lean Construction” ConceptSimple projects easily executed with

Landbank - Minha Casa, Minha Vida (units)Landbank - Minha Casa, Minha Vida (units)

September 30, 2009Simple projects, easily executed, with repetitions, standardized and focused on managementAssembly lineAssembly lineReduction of wastes and costsIncreased productivity during works

tiMCMV Others

executionIncreased construction qualityIncreased flexibility of requirements

52% 48%

Flexibility of works execution scheduleIncreased costumer satisfaction

Enhancement of construction methods for popular housing

Product blueprint definition developed together with suppliers

PSV: R$ 7.2 billion (100%)R$ 5 7 billion (% Living)together with suppliers

Land bought to fit the productPrice defined by product (not by sq.m.)In ho se and trained labor

R$ 5.7 billion (% Living)81 plots of land Land Swaps: 66%

32

In-house and trained labor15% cost reduction expected

Page 33: Cyrela - Corporate Presentation - November 2009

Living Environment

Customer Service Platform EngineeringMonitoring of the

SalesTermination of

Centralizes all phases of the process, from the time a client buys a property until he/she pays the last installment.

gconstruction worksTechnical visitsCondominium meetingsTechnical assistance

agreementsSales terms and conditionsSales officePrice table

Reduces risks and consolidates the relationship with clients

Increases client assistance capabilities

Customer Service Platform

Participation in promotional campaigns

LegalFinancialIncreases client assistance capabilities

Financing Availability

Termination of agreementsPurchase agreements

Credit AnalysisFinancial productsCollectionPrice tableOn lending schedule

Strengthened relationship with the Housing Financing System (SFH) and Caixa Econômica Federal (CEF)

g

CEF correspondents serve all Brazilian regions

B d il bilit f f d d th

DevelopmentMarketing

► Communication► Research

Broad availability of funds under the Minha Casa, Minha Vida Program

► Brochures► Promotional campaigns► Campaigns

Indication/Benefits/Performance

33

Page 34: Cyrela - Corporate Presentation - November 2009

CEO Salvador ShoppingSalvador - BALaunched in September 2009

Outlook for theF tFuture:Cyrela’sCyrela s

Revised Plan

Page 35: Cyrela - Corporate Presentation - November 2009

Excellent Track Record of Growth

Launches(R$ million)

Pre - Sales Contracts(R$ million)

5,3934,827 4,392 4,612

1 211

2,9171,915

972 1,211 3,3323,428

1,9241,004700

949 1,023

713 7551,369

2,815 3,074

2004 2005 2006 2007 2008

Cyrela Partners

2004 2005 2006 2007 2008

Cyrela Partners

35

Consistent track record of growth in Launches and Pre-sales Contracts

Page 36: Cyrela - Corporate Presentation - November 2009

Growth Opportunities Ahead

Ride the exceptional growth of the low-income segment in Brazil1

Increase momentum of national expansion2

Profitability driven growth in our core market3Sales (R$ billion)(1)Sales (R$ billion)(1)Launches (R$ billion)(1)Launches (R$ billion)(1)

3

6.9 - 7.7

4 6 - 5 1

6.2 - 6.9

4.6 - 5.14.6 - 5.1

36

2009E 2010E 2009E 2010E

(1) Guidance range – Considering 100% stake

Page 37: Cyrela - Corporate Presentation - November 2009

Guidance 2009 - 2012Xxxx

Launches and Sales for 2009 - 2012

Guidance 2009 2010 2011 2012

Launches (R$ billion)

4.6 to 5.1 6.9 to 7.7 8.3 to 9.1 10.5 to 11.5

SalesSales (R$ billion)

4.6 to 5.1 6.2 to 6.9 7.6 to 8.4 9.7 to 10.7

% Cyrela 70% a 75% 73% a 77% > 75% > 75%

Margins over net revenuefor 2009 - 2012

Living’s stakefor 2009 - 2012

Gross margin 33% to 37%2009 from 30% to 35%2010 from 35% to 40%

% Living

EBITDA margin 20% to 24%Net margin 14% to 16%

2010 from 35% to 40%2011 from 40% to 45%2012 from 45% to 50%

37

Page 38: Cyrela - Corporate Presentation - November 2009

Landbank Analysis – Acquisition of LandCyrela’s Landbank Maturity to

Launch (R$ million)Cyrela’s Landbank Maturity to

Launch (R$ million)Living’s Landbank Maturity

to Launch (100% stake - R$ million)1Living’s Landbank Maturity

to Launch (100% stake - R$ million)1

2 900

16,900

1,6002,400

1,600

2,900

800821341

500

Mid-High Income Landbank Maturityt L h (100% t k R$ illi )1

Mid-High Income Landbank Maturityt L h (100% t k R$ illi )1

2009E 2010E 2011E 2012E Post 2012

809

7,700

to Launch (100% stake - R$ million)1to Launch (100% stake - R$ million)1

16,100

6 891

5,100

4,241

4 491

3093,500

4,800

3,420

1 539

5,100

6,891

1,880

Existing Landbank Incremental Purchases

3,5004,491 1,539

2009E 2010E 2011E 2012E Post 2012

2009E 2010E 2011E 2012E Post 2012

38

70% of proceeds to be directed to landbank(1) Potential PSV, 100%

Page 39: Cyrela - Corporate Presentation - November 2009

Landbank Analysis – as of September 30, 2009

LIVING Region breakdown(1)LIVING Region breakdown(1)CYRELA Region breakdown(1) CYRELA Region breakdown(1)

São Paulo (Metropolitan) 

10 3%South + São Paulo 

South + Southeast 7.7%

10.3%Southeast 24.7%

(Metropolitan) 19.1%Northeast 

18.3%

São Paulo Northeast 10.2%

São Paulo(Other Cities) 

10.3%North 

(Other Cities) 32.3%

North1.0%

4.0%

Rio de Janeiro 21.5%

Rio de Janeiro 40.7%

39

Landbank to be acquired in all geographical regions(1) PSV, 100%

Page 40: Cyrela - Corporate Presentation - November 2009

2016 Olympic Games

R$ 14bn of PSV in Rio de Janeiro of which almostBarra da Tijuca RJ

Strategically 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 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

Cidade Jardim Centro

Metropolitano

benefiting to the region will endure for long after the

Olympic GamesGleba F

Future facilities of

Until 2016, more than R$100 billion of investments

expected for the projectP í l

Olympic Games 2016

► The civil construction sector is expected to account for approximately 10% of the investments

$

Península

► The local government announced R$ 11.4 bninvestment in transportation infrastructure to facilitate access to the region

Source: Rio 2016 official Olympic project

40

Cyrela is the best positioned real estate company to profit from the 2016 Olympic Games

Page 41: Cyrela - Corporate Presentation - November 2009

Cyrela’s Investment Plan

Use of proceeds 100% related to growthSources (R$ million)Sources (R$ million)Uses (R$ million)Uses (R$ million)

1,000850

2,500

900

2,5001,000

600

350

Working capital Cost ofLandbank (Low

Cost ofLandbank (Mid-

Total

300

Sale ofstake in

BondOffering

Follow-onOffering

OtherFinancing

Total

41

Landbank (LowIncome)

Landbank (MidHigh Income)

stake inAgra

Offering Offering Financing

Page 42: Cyrela - Corporate Presentation - November 2009

Quinta dos MoinhosCanoas - RSLaunched in August 2009

3Q09 R lt3Q09 Results

Page 43: Cyrela - Corporate Presentation - November 2009

Living’s Launches

6 thousand units launched in 9M09 and 78% sold up to Oct/09

AProjects PSV

(R$ thd)Units % Cyrela

Average price

(R$thd/un.)MCMV % sold

until Oct/09

9M09 794,160 5,967 77.2% 133 49.6% 78%

3Q09 450,897 3,501 79.1% 129 57.2% 79%

Fatto Jardim Botanico - Phase 1 52 053 379 79 0% 137 23 98%Fatto Jardim Botanico - Phase 1 52,053 379 79.0% 137 23 98%

Fatto Sport Faria Lima Phase 2 35,609 304 79.0% 117 304 70%

Fatto Sport Faria Lima – Phase 3 35,609 304 79.0% 117 304 55%

Avanti Clube 50,824 400 50.0% 127 267 52%

Liber Res - Phase 2 37,909 390 100.0% 97 390 41%

Vitoria Pirituba Gaivota 24,847 264 60.0% 94 264 97%

Dez Curuça 21,294 252 50.0% 85 252 100%

Parque Dos Sonhos Buritis 16,202 200 50.0% 81 200 100%

Ecoparque - Belem - Phase 1 41,200 255 100.0% 162 - 100%

Ecoparque - Belem – Phase 2 41,200 255 100.0% 162 - 83%

Fatto Mansoes 49,310 228 91.6% 216 - 100%

Alcance Niteroi 19,781 114 100.0% 174 - 100%

43

Buritis Cond Clube - Phase 2 25,057 156 60.0% 161 - 74%

Page 44: Cyrela - Corporate Presentation - November 2009

R$ 941 mm of Living launches scheduled for 4Q09*

Launches in October 2009

2,539 units and R$ 264.5 million already launched in 4Q09 until October 30, 2009

Estimate launches for the year: 14 thousand units

Ventura Clube Morar – Porto Alegre - RSLaunched in Oct/09PSV: R$ 35 million

Living Projectsto be Region PSV Units

y

PSV: R$ 35 millionUnits: 250Average price: R$141 thd/ un.

Único Guarulhos São Paulo

to beLaunched in

4Q09

Region PSVR$ million

Units

26 BRASIL 941.0 8,133 Único Guarulhos – São PauloLaunched in Oct/09PSV: R$ 223 millionUnits: 2.380Average price: R$94 thd/ un

26 BRASIL 941.0 8,133

10 São Paulo 393.5 3.601

5 Rio de Janeiro 233 9 1 996 Average price: R$94 thd/ un.

Parque dos Sonhos – Jacarandá – São PauloLaunched in Oct/09

233.9 1.996

4 Rio Grande do Sul 100.4 670

2 Espírito Santo 78.7 590PSV: R$ 30 millionUnits: 355Average price: 84 thd/un.

8 590

2 Paraná 47.6 328

2 Bahia 66.9 732

1 Pará 20.0 216

44* Forecast according to guidance

Page 45: Cyrela - Corporate Presentation - November 2009

Living’s Launches and Sales – 3Q09 and 9M09

Launches(R$ million)

Pre-Sales(R$ million)

369

1,171

808

441

1,459

802593

139 107

369

215 474 440

808

518

1,018613

217

94

181 736

451

794

335 333593

3Q08 3Q09 9M08 9M09Li i P t

518 357613

3Q08 3Q09 9M08 9M09

47% 7% 7% 8% 6% 75%3Q08

Living PartnersLiving Partners

Average Sales Speed

29%

35%

47%

41%

9%

7%

1%

7%

7%

4%

8% 6%

72%

55%

75%

1Q09

4Q08

3Q08

61%

41%

29%

37%

41% 1%

78%

72%

3Q09

2Q09

1Q09

45

61%3Q09

In 3 months In 6 months In 9 months In 12 months In 15 months

Page 46: Cyrela - Corporate Presentation - November 2009

Living’s Lanbank – 3Q09

Landbank distributionPSV:

R$ 6.8 billion (100%)

R$ 5 4 billion (% Living) R$ 5.4 billion (% Living)

76 plots of land

MCMV55% Others

45%

Landbank by unit price

69% paid through swaps

Landbank by unit price

24,248 53,457 50,000

60,000

18,267 30,000

40,000

10,942

-

10,000

20,000

46PS.: Calculations done in units

Up toR$ 100 thd

FromR$ 100 thd to

R$ 130 thd

FromR$ 130 thd to

R$ 200 thd

Total

Page 47: Cyrela - Corporate Presentation - November 2009

Launches

27 projects launched in 3Q09 and 49 in 9M09

Average price: R$ 248 thd /unit or R$ 3.5 thd /sq.m.

LIVING: 23.1% of PSV launched in 3Q09 and 25.7% in 9M09

Distribution by region – 3Q09Launches

4,505

Distribution by region 3Q09(R$ million)

1,447

4,505

3,127

SP53%

3,0582 385

461

742

1,138

1,952 RJ19%

8111,491

2,385327 1,138

3Q08 3Q09 9M08 9M09

Expansion28%

47

3Q08 3Q09 9M08 9M09

Cyrela Partners

Page 48: Cyrela - Corporate Presentation - November 2009

Contracted Sales

Sales peak record in September (45% of 3Q09 sales)

11 4 thousand units sold in 9M0911.4 thousand units sold in 9M09

Sales Over Supply: 32.1% in 3Q09 vs. 21.9% in 2Q09

LIVING 27 0% f 3Q09 l d 27 2 f 9M09 lLIVING: 27.0% of 3Q09 sales and 27.2 of 9M09 sales

35% of sales in 9M09 were from inventory

Sales (R$ million)

Sales by region and brand – 3Q09

SP52%

1 528

4,611

RJ16%

1,528

769 1,631

2,973

Expansion771 1,231

3,0832,203389

400 1,161

48

Expansion32%3Q08 3Q09 9M08 9M09

Cyrela Partners

Page 49: Cyrela - Corporate Presentation - November 2009

Sales Speed – Cyrela + Living

Average Sales Speed

44% 12% 5% 6% 5% 71%3Q08

37%

37%

30%

10%

9%

14% 9%

75%

69%

1Q09

4Q08

49%

37%

30%

30% 9%

79%

75%

2Q09

1Q09

52%3Q09

In 3 months In 6 months In 9 months In 12 months In 15 months

49

Page 50: Cyrela - Corporate Presentation - November 2009

Landbank

R$ 37.2 billion in PSV (Cyrela’s stake is R$ 30.6 billion)

185 projects with 136 9 thd units 117 3 thd of which eligible for SFH financing

Units in l db k

185 projects with 136.9 thd units, 117.3 thd of which eligible for SFH financing

landbank

21% up to R$ 130 thd 86% up toR$ 500 thd

39,150 9,763

11,283 7,331 1,073 136,946

120,000

140,000

39,137 80,000

100,000

10 94218,267

20 000

40,000

60,000

10,942

-

20,000

Up toR$ 100 thd

FromR$ 100 thd

FromR$ 130 thd

FromR$ 200 thd

FromR$ 350 thd

FromR$ 500 thd

FromR$ 600 thd

Above R$ 1,200 thd

Total

50

R$ 100 thd R$ 100 thdto

R$ 130 thd

R$ 130 thdto

R$ 200 thd

R$ 200 thdto

R$ 350 thd

R$ 350 thdto

R$ 500 thd

R$ 500 thdto

R$ 600 thd

R$ 600 thdto

R$ 1,200 thd

1,200 thd

Page 51: Cyrela - Corporate Presentation - November 2009

Financial Results

2 895 9

Net Revenue(R$ million)

+38.1%

2,096.4

2,895.9

+79.7%

750.7

1,348.9

3Q08 3Q09 9M08 9M09BacklogG I

40.7%

34.0%

39.9%34.9%

Net RevenueBacklog(R$ million)

Gross Income(R$ million) 34,7% 33,6% 34,0%

836.0 1,010.5

34.0%

+50 0%

+20.9%4.741,0

4.173,5 4.355,8

305.7 458.6

+50.0%

51

3Q08 3Q09 9M08 9M09Gross Profit Gross Margin

1Q09 1H09 9M09

Revenue to be Recog. Gross Mg. To be Recog.

Page 52: Cyrela - Corporate Presentation - November 2009

Accounts Receivable

Accounts receivable performance(R$ million)

Receivables’ remuneration(R$ million)(R$ million) (R$ million)

Built: IGP-M + 12%Under construction: INCC

8 32

7,685 7,464 8,327

765 8,327

7,561 1Q09 1H09 9M09

Receivables Schedule

2,877 Receivables

Units under construction

Constructed units

Construction cost to incur- sold

(R$ million)

2,412

1,181 798 518 410 376 354 329 302

1,646

52

2009 2010 2011 2012 2013 2014 2015 2016 2017 Until 2028

Page 53: Cyrela - Corporate Presentation - November 2009

Financial Results

21 7% 22.6%19.6%

18 0%

EBITDA(R$ million)

Net Profit(R$ million)

19.6%21.7%

18.8%

22.6%

11 5%

18.0%

293 3394.3

653.9

264 1 240 4

521.6 10.4%

11.5%

+99.6%

+65.8%

+117.0%

146.9 293.3

77.9

264.1 240.4 +239.0%

3Q08 3Q09 9M08 9M09EBITDA EBITDA Margin

3Q08 3Q09 9M08 9M09Net Profit Net Margin

Expenses over Contracted Sales Expenses over Net Revenue

12.2% 11.6%

7.8% 7 1%7 9%

14.5%

10.9%

7.8%6.0%

7.1%8.5% 7.6% 6.8%

5.8% 5.0%

7.9%6.3% 5.9%

5.5%

9.6% 9.5%

6.1%4.1%

533Q09 4Q08 1Q09 2Q09 3Q09

Selling Expenses Gen. & Admin. Expenses

3Q09 4Q08 1Q09 2Q09 3Q09

Selling Expenses Gen. & Admin. Expenses

Page 54: Cyrela - Corporate Presentation - November 2009

Liquidity

Debt(R$ illi )

BalanceMaturity Cost(R$ million) Sep 30, 2009Maturity Cost

SFH 1,117.6 2009 to 2014 TR + ~ 10.4% p.a.

Debentures 1st issuance 500.0 2012, 2013, 2014 CDI + 0.48% p.a.

Debentures 2nd issuance* 373.0 2018 CDI + 0.65% p.a.

Debentures 3rd issuance 350.0 2014 CDI + 0.81% p.a.

Bradesco (stand-by) and others 378.6 Nov/2010, Nov/2011, Nov/2012, Nov/2013 CDI + 0.81% p.a.

Loans (foreign currency) – US$ 50 million 88.9 Sep/2011 and Sep/2012 Libor + 3.5% and 4.3% p.a.

Total Debt withSFH 2,808.1Net Debt withSFH

Total Debt without SFH 1,690.5

Cash and Cash Equivalents (865.1)

Net Debt withSFH

LTM EBITDA= 3.0 times

Net Debt withSFH 1,943.0

Net Debt without SFH 825.4 Net Debt without SFH = 1.3 time

54

* Repactuation in 2010 and 2011LTM EBITDA

Page 55: Cyrela - Corporate Presentation - November 2009

Pre-Sales to be Recognized

2007R$ million 2008 September 30 ‘09

1,597.1

4 515 2

Sales to be recognized at the beginning of the period

Net sales recorded in the period

4,081.6

3 974 4

5,124.2

2 401 24,515.2

(2,030.3)

Net sales recorded in the period

Revenues recognized in the period

3,974.4

(2,930.8)

2.401,2

(2.974,8)

4,081.6Sales to be recognized at the end of the period 5,124.1 4.520,8

(149 0) (187 0) (165 0)

(2,604.7)Cost of units sold to be recognized (3,217.2) (2.876,6)

(149.0)Taxes (187.0) (165,0)

(26.3)Selling Expenses (37.6) (23,5)

1,327.9

32.5%

Gross profit to be recognized

Percentage of gross profit

1,719.9

33.5%

1.479,3

34,0%

55

Page 56: Cyrela - Corporate Presentation - November 2009

Delays and Cancellations

Delays3 11%

1,09%

1 26%

1,34%

1,43%

1,43%

1,37%

1,35%

1,39%

1,38%1,52%

1,59%

1,64%

1,79%

2,00%

1,92%

1,92%1,87%1,82%2,06%

2,27%

3,11%

1,26% ,

Delays above 31 days

Cancellations

0,21% 0,20%0,23%

0,26%0,23%

0 22%

0,22%

0 23%

0,26% 0,27%

0,17%0,21%

0,24%

0,36%

0,18%0,22% 0,23%

0,20%

0,07%

0,14%,

0,13%

0,07%0,09%

56Obs.: Considering only the portfolio managed by Cyrela

Cancellation index = cancellations / active clients

Page 57: Cyrela - Corporate Presentation - November 2009

NovaAmérica - Califórnia CollectionSão Paulo-SPLaunched in September 2009

A diAppendix

Page 58: Cyrela - Corporate Presentation - November 2009

Shareholder Structure

Current ownership %Current ownership % Post-offering ownership %Post-offering ownership %

ControllingShareholders,

ControllingShareholders,

BoardMembers andShareholders,

BoardMembers andManagement;

42.3%

36.9%

Members andManagement;

Free Float;Free Float

63.1%Free Float; 57.7%

63.1%

Market Cap1: R$ 8.1 bn Market Cap post-offering1: R$ 9.3 bnp $

Free Float1: R$ 4.7 bn

Daily liquidity2: R$ 71 mm

p p g $

Free Float post-offering1: R$ 5.9 bn

Daily liquidity post-offering: R$ 114 mm

368,615,226 common shares 422,365,226 common shares2

1- Based on the price offer of R$ 22 00

58

1 Based on the price offer of R$ 22.002- ADTV in 2009 until Oct 27, 20093- ADTV from Oct 28, 2009 until Nov 11, 2009

Page 59: Cyrela - Corporate Presentation - November 2009

Typical Cyrela Project

Launch Go-ahead Delivery Completionof payments

Construction6M - 18MLicensing

Pre sales 0 50 70 90 100 10080 95

Up to 100M18M 24M 30M 36M12M6M0M

Licensing

Pre-sales 0 50 70 90 100 10080 95

% Budget Costs - - 0% 40% 100% 100%20% 65%

Revenues - - 0 36 100 10016 62

Assumptions for this example:

Collections(cumulative) - 7 14 28 50 10020 34

Potential sales: R$ 100 million

Exchange agreements (land): R$ 20 million (recognized as revenues and COGS)

59

Exchange agreements (land): R$ 20 million (recognized as revenues and COGS)

Does not include financial revenues deriving from customer financing

Page 60: Cyrela - Corporate Presentation - November 2009

Typical Living Project

Shorter operating cycle: 24 months

Launch Go-ahead Delivery Financing

0 - 6 monthsPre-Launching

Construction

Contracted Sales(cumulative)

- 70 80 10090 100

18M 24M Up to 28M12M6M0M

%Construction Cost - - 23% 100%55% 100%

Revenues(cumulative) - - 19 10049 100

Collections - 6 11 2013 100

Assumptions for this example: Potential Sales: R$ 100 million

(cumulative) - 6 11 2013 100

60

Exchange agreements: 100% (R$10 mm), 80% of unit price financed by commercial banks Client is fully financed by the banks after keys handover

Page 61: Cyrela - Corporate Presentation - November 2009

Joint Ventures

% CBR Region Segment Year% CBR Region Segment Year

50% São Paulo Middle / Mid-High 2006

50% São Paulo Mid-High / Luxury 2007

50% MG and DF All 200750% MG and DF All 2007

50% São Paulo Middle / Mid-High 2008

50% Buenos Aires All 2007

50% São Paulo Economic / Super 200750% São Paulo Economic 2007

79% São Paulo Economic / Super Economic 2006

The former JV Goldsztein Cyrela was acquired in June 2009.

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Page 62: Cyrela - Corporate Presentation - November 2009

Geographical Expansion

Presence in 55 cities in 17 states of Brazil and Buenos Aires in Argentina

64 Projects outside SP – RJ regionR$ 11.2 billion of PSVR$ 11.2 billion of PSV (Cyrela’s stake: 72%)

Barueri | Belém | Belford Roxo | Belo Horizonte |Cabo Frio | Campinas | Campos | Canoas | Caxiasdo Sul | Caxias | Cotia | Curitiba | Diadema | Duquede Caxias | Ferraz de Vasconcelos | Florianópolis| F t l | G iâ i | G t í | G lh || Fortaleza | Goiânia | Gravataí | Guarulhos |Jacareí | Jacarepaguá | João Pessoa | Jundiaí |Lauro de Freitas | Maceió | Manaus | Mogi dasCruzes | Natal | Niterói | Nizia Floresta | NovaCruzes | Natal | Niterói | Nizia Floresta | NovaIguaçu | Novo Hamburgo | Palhoça | Parnamirim |Porto Alegre | Praia Grande | Recife | Rezende| Ribeirão Preto | Rio de Janeiro | Salvador || be ão eto | o de Ja e o | Sa ado |Santo André | São Bernardo | São Caetano | SãoGonçalo | São J. dos Campos | São José do RioPreto | São Luis | São Paulo | São Sebastião |

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Serra | Sorocaba | Vila Velha | Vitória

Page 63: Cyrela - Corporate Presentation - November 2009

Contact us

Cyrela Brazil Realty S.A. Empreendimentos e ParticipaçõesAv Presidente Juscelino Kubitschek 1 455 3rd floorAv. Presidente Juscelino Kubitschek, 1.455, 3rd floorSão Paulo - SP – BrasilCEP 04543-011

Investor RelationsPhone: (55 11) 4502-3153 [email protected]

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 financialresults 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's

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plan. 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.