1q08 results presentation

11

1Q08 Results

2

1Q08 Results Conference Call

Heitor CantergianiDiretor Superintendente

Leonardo DinizDiretor Comercial

Gerson CohenController

Sergio Rossi CuppoloniDiretor de RI

Agenda

Heitor CantergianiCEO

Main Highlights

Overall Outlook

Strategy

Leonardo DinizSales Officer

Launches

Sales

Geographical Expansion

Gerson CohenController

Sergio Rossi CuppoloniIRO

Share Performance

Market

Coverage RSID3

Alterations in accounting principals

Performance 1Q08

Backlog

Indebtedness

3

Heitor Cantergiani


Overall Outlook

4

Launch of 5 new projects PSV Rossi’s share R$ 178 million

Contracted sales grows 11% in 1Q08 Rossi’s share R$ 313 million

Net revenues reaches R$ 189 million

Net income of R$ 20 million in 1Q08

Geographical Expansion 54 cities and 13 states

Rossi Sales 156 brokers operating in São Paulo, Porto Alegre, Rio de Janeiro and Campinas

Responsible for R$ 51 million (12% of total sales)

In May our shares were included in the Bovespa Index (Ibovespa) Ranking 51st

Weighted 0.541% in the Index

Adoption of a new accounting principal in accordance with the IFRS

Significant share liquidity increase Record of R$ 108 million traded on May 2

Rossi received from Caixa Econômica Federal the rating A, the highest rating for financing operations grated by

the institution.

1Q08 – Highlights


5

Leonardo Diniz


PSV, Sales, Geographical Expansion

6

5 projects launched in 1Q08: São Paulo (1), Campinas (1), Natal (1) and Fortaleza (2)

Lanches PSV – R$ milhões

Launches

1Q07 1Q08

Parterns

Rossi410

178

50 90

Launches Breakdown by price Segment and Regional Offices

-42%

3,8%

13,1%

12,6%

19,2%

26,0%

70,2%

BH

NE

CPS

POA

SP

RJ

OP

13,6%

51,8%

34,6%

Até R$ 120,0 mil

De R$ 120,1 mil a R$ 200,0 mil

De R$ 200,1 mil a R$ 350,0 mil

De R$ 350,1 a R$ 500,0 mil

Acima de R$ 500,1 mil

Comerciais

70.2%

26.0%

3.8%

13.6%

12,6%

19,2%

51.8%

34.6%

< R$ 120,000

R$ 120,100 - R$ 200,000

R$ 200,100 - R$ 350,000

R$ 350,100 - R$ 500,000

> R$ 500,100

Comemercial


7

R$ million

Contracted Sales

1Q07 1Q08

Partners

Rossi287

313

88 102

Contracted Sales Breakdown by Price Segment and Regional Offices

+11.0%


1.4%

3,8%

13,1%

12,6%

19,2%

26,0%

70,2%

BH

NE

CPS

POA

SP

RJ

OP

13,6%

51,8%

34,6%

Até R$ 120,0 mil

De R$ 120,1 mil a R$ 200,0 mil

De R$ 200,1 mil a R$ 350,0 mil

De R$ 350,1 a R$ 500,0 mil

Acima de R$ 500,1 mil

Comerciais

19.2%

20.4%

33.4%

32.0%

12.2%

25.8%

17.6%

4.9%

7.5%13.1%

12.6%

< R$ 120,000

R$ 120,100 - R$ 200,000

R$ 200,100 - R$ 350,000

$ 350,100 - R$ 500,000

> R$ 500,100

Comemercials

8

Potential PSV (100%): R$ 15.2 billion

Rossi’s share: R$ 10.7 billion

Land bank PSV in R$ million

1Q08

Total

Total Rossi

15,247 10,684

Breakdown

PSV Launched 1Q08

Final 4T07

Origination 1Q08

Final 1Q08

14,715

(268)

810

15,247

10,116

(178)

746

10,684

Acquisition Method

Land Bank distributed in 129 lands in 54 cities, not concentrated

12.7 million m2 in buildable area

Future launches (in units) – 81,931

4 to 5 years in the bag for future launches

Land Bank

Swap by unit 45%

FinancialSwaps 21%Cash

34%


9053 9557 10116 10684

30894000 4599 4563

0

4000

8000

12000

16000

2Q07 3Q07 4Q07 1Q08

Partners

Rossi

Regional Office < 120,000

120,000 to

200,000

200,000to

350,000

350,000 to

500,000

> 500,000 Commercial Lots Total %

São Paulo 259 188 480 1,132 779 - 130 2,968 19%

Campinas 329 168 985 167 146 15 665 2,466 16%

Oeste Paulista 154 89 170 - - - - 413 3%

Rio de Janeiro 426 613 2,367 449 362 - - 4,216 28%

Sul 190 1.508 1.161 43 66 105 - 3,074 20%

Belo Horizonte 940 16 31 - 332 242 - 1,562 10%

Nordeste 434 - 70 44 - - - 549 4%

Total 2,732 2,583 5,264 1,834 1,686 362 785 15,247 100%

Distribution 18% 17% 35% 12% 11% 2% 5% 100%

9

Land Bank : PSV PotencialFocus on low to middle income segments- 70% of units < R$ 350,000

Land Bank 1Q08 (in R$ million) - PSV by Regional Office and Segment


10

Price and Product Breakdown

PSV per year

R$ million PSV - Duration

0

500

1000

1500

2000

2500

3000

3500

2008 2009 2010 2011 ......

Regional Breakdown

Land Bank

Rossi should continue focusing on low to middle income segments...low income DNA


< R$ 120,000

R$ 120,100 - R$ 200,000

R$ 200,100 - R$ 350,000

R$ 350,100 - R$ 500,000

> R$ 500,100

Commercial

Lots

35%

17%

18%

5%2%

11%

2012 and on.....

19%

1%

Centro Oeste

Belo Horizonte

Nordeste

Campinas

Sul

São Paulo

Rio de Janeiro

Oeste Paulista

16%

28%

20%

4%

10%

1%

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Regional Offices

(1) 1980 – São Paulo

(2) 1996 – Campinas

(3) 1999 – Porto Alegre

(4) 2001 – Rio de Janeiro

(5) 2006 – Belo Horizonte

(6) 2007 – Fortaleza

(7) 2007 – Oeste Paulista


Long Term Sustainable Competitive Advantage:Building up Local Know-How

Geographical Presence

72

3

4

5

6

1

12

Gerson Cohen


Operating Performance

13


Alterations in Accounting Principals

Until 2007 As of 2008

Marketing expenses

Advertising and marketing expenses were deferred and amortized in the result in the proportion of the percentage of costs paid in relation to the total cost (construction evolution percentage).

Advertising and marketing expenses, (intangible) and results are recognized as they occur.

Sales stands Expenses directly related to the construction of sales stands and furniture (tangible) are deferred and booked to the result, in the proportion of the percentage of costs paid over the total expected. (construction evolution percentage).

After the stand sales use, when 100% of the projects units were already sold, the remaining balance is booked in the result.

Financial charges Financial charges from real estate financing were capitalized and booked in the result in the proportion of the percentage of costs paid over the total expected. (construction evolution percentage), as “Financial expenses”.

Financial charges from real estate financing, financing for the acquisition of land sites for future projects in installments and from debentures are capitalized and recognized as “cost of properties sold”, at the construction evolution percentage.

14

1Q08 Financial Highlights (in R$ million)


411

733

164 189

2006 2007 1Q07 1Q08

128

258

53 49

2006 2007 1Q07 1Q08

Net Revenue Gross Income and Gross Margin

32.6%

25.8%

Cost of units sold1Q08

% Net Revenue

1Q07% Net

RevenueVar.

Works + Land sites 133.0 70.4% 106.1 64.9% -5.4 p.p.

Financial charges 7.3 3.9% 4.0 2.5% -1.4 p.p.

Cost of units sold 140.3 74.2% 110.2 67.4% -6.8 p.p.

R$ million

15

1Q08 Financial Highlights (in R$ million)


51

132

225

2006 2007 1Q07 1Q08

44

131

29 21

2006 2007 1Q07 1Q08

2.5%

13.6% 17.7%

10.8%

16

Total Debt: R$ 480.8 million

Cash position: R$ 119.8 million

Net Debt: R$ 361.0 millionShareholders’ Equity: R$ 1,084.2 million

Unearned Results

372.5409.0

4Q07 1Q08

Uneamed Results Backlog Gross Margin

21%

64%

15% Construction Financing- ST

Debentures35.1%

35.5%

17.2%

81.9%

1.0%

Cash and banks

Short Term Investments

Long Term Investments


Indebtedness (in R$ million)

Construction Financing- LT

Stand by Credit Line R$ 200 millionDebentures R$ 300 million

17

Sérgio Rossi Cuppoloni


Share Performance

0,00

20,00

40,00

60,00

80,00

100,00

120,00

5,00

7,50

10,00

12,50

15,00

17,50

20,00

22,50

25,00

27,50

30,00

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RSID3 - 2007/ 2008

Source: Bloomberg March 3rd

R$ MMR$ / ShareS&P upgrades

Brazilian Rating (April, 30)

Rossi is included in the Bovespa Index (May, 2)

Ibovespa RSID3 Average traded volume per day


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Analyst CoverageInstitution Analyst Contact

UBS PactualGuilherme Vilazante Gordon Lee

[email protected]

[email protected]

Credit Suisse Marcelo Telles Vanessa Quirog

[email protected] [email protected]

Bradesco Carlos Firetti Marcos Suzaki


JP Morgan Adrian HuertaSomesh Agarwal


Bulltick Rafael Pinho [email protected]

Santander Marcello MilmanGonzalo Fernández


BB Investimentos Antonio Emilio Ruiz [email protected]

Unibanco Carlos Macedo [email protected]

Merrill Lynch Alexandre Miguel Carlos Peryrelongue Esteban Polidura

[email protected] [email protected] [email protected]

Deutsche Bank Dan McGoeyMichelle Dorea


Citigroup Cecília del CastilioRodrigo Villanueva Bravo


Banco Fator Renato Pinto [email protected]

Itaú Tomas Awad [email protected]

Goldman Sachs Jason B. Mollin [email protected]

Raymond James Conrado Vegner [email protected]


20

IR Team


Sergio Rossi CuppoloniInvestor Relations Officer

Maria Claudia BiolchiniInvestor Relations [email protected]. (55 11) 3759-7516

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DisclaimerThis material is a presentation of general background information about Rossi Residencial S.A. (“Rossi”) as of the date of this

presentation. Information contained herein has been summarized and does not purport to be complete. This presentation shall not be

considered an advice of investment by potential investors. This presentation is strictly confidential and may not be disclosed to any third

person. There are no representations or warranties, express or implied, regarding the accuracy, fairness, or completeness of the

information presented herein, which shall not support any decision of investment.

This presentation contains statements and information that are forward-looking pursuant section 27A of the Securities Act of 1933, as

amended, and Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements and information are only

predictions and cannot assure Rossi´s future performance. Investors have been cautioned that any such forward-looking statements and

information are subject to many risks and uncertainties relating to the operations and business of Rossi and its subsidiaries. As a result of

such risks and uncertainties, the actual results of Rossi and its subsidiaries may be materially different from any future result expressed

or implied in the forward-looking statement or information contained herein.

Although Rossi believes that the expectations and assumptions reflected in the forward-looking statements and information are

reasonable and have been based on data currently available to its officers and directores, Rossi cannot guarantee future results or

events. Rossi does not assume the commitment of update any of the forward-looking statement of information.

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