2q07 results presentation - globalri · 2016-08-09 · 2q07 gross margin remained stable, even...
TRANSCRIPT
2Q07 Results PresentationAugust 15, 2007
1
Cyrela Brazil Realty Team
Chief Executive Officer Elie Horn
CFO and Investor Relations Officer Luis LargmanCFO and Investor Relations Officer Luis Largman
Control and Financial Planning Officer Saulo Lara
22
1H07 Highlights
LIVING: among the 2 largest players of its segment up to the end of 2007LIVING: among the 2 largest players of its segment up to the end of 2007
Presence in 12 states and 24 citiesPresence in 12 states and 24 cities
R$ 3 billion available to client financingR$ 3 billion available to client financing
Launches of R$ 1.293 billion in the semester (23.3% higher than 1H06) Launches of R$ 1.293 billion in the semester (23.3% higher than 1H06)
Contracted Sales totaled R$ 1 372 billion (72 1% higher than 1H06)Contracted Sales totaled R$ 1 372 billion (72 1% higher than 1H06)Contracted Sales totaled R$ 1.372 billion (72.1% higher than 1H06)Contracted Sales totaled R$ 1.372 billion (72.1% higher than 1H06)
Current Landbank comprises R$ 27.7 billion of Potential PSVCurrent Landbank comprises R$ 27.7 billion of Potential PSV
R$ 103 million Non-Operating Result derived from Agra’s IPOR$ 103 million Non-Operating Result derived from Agra’s IPO
Agra and CCP’s results not included in CBR’s statements since 2Q07Agra and CCP’s results not included in CBR’s statements since 2Q07
CCP: spin-off concludedCCP: spin-off concluded
2Q07 G M i i d t bl ith t CCP’ fi2Q07 G M i i d t bl ith t CCP’ fi
33
2Q07 Gross Margin remained stable, even without CCP’s figures2Q07 Gross Margin remained stable, even without CCP’s figures
Launches – in R$ million
Including AgraIncluding Agra Excluding AgraExcluding Agra(R$ million)(R$ million)
363264
318135
135 71.8% 65.1%
72.0%
64.3%1.049
741
919943
363
531135 283
13564.3% 54.5%
65.1%
55.5%
1.049 1.044919
1.293
521
226
371
264
303
212
552
255521 404
363
426264 358
336552
B kd b I S t 1S07*B kd b I S t 1S07*Potential Sales
1S06 1H07 2Q06 2Q07
SP RJ Geographical Expansion %CBR
1S06 1H07 2Q06 2Q07
SP RJ Geographical Expansion %CBR
Breakdown by Income Segment- 1S07*Breakdown by Income Segment- 1S07*Potential Sales(R$ million)
% Cyrela % Sold
São Paulo 336.2 54.3 54.4
São Paulo - 289 0 39 2 37 0Mid-High
36 1% %Countryside 289.0 39.2 37.0
Rio de Janeiro 425.7 69.0 21.5
Espírito Santo 96.5 65.0 59.9
Ri Gd d S l 52 6 50 0 93 6
36.1% Middle 39.8%
44
Rio Gde do Sul 52.6 50.0 93.6
Bahia 92.8 41.5 93.3
1H07 Total* 1,292.7 55.5 41.4* Including AGRA
Luxury 13.4%
Economic 9.4%
Super Economic
1.4%
Pre-Sales Contracts – in R$ million
Including AgraIncluding Agra Excluding AgraExcluding Agra
1,327
565
36460.2%75.3%
58.6%
852
589
1,327
797425
70.9%
75.3%70 7%
698589
1.087
797
281203
331
206589
446
364
6477
6 137
74.1%
218203
331206
589446
273
6 332 6 137
74.1%70.7%589
1H06 1H07 2Q06 2Q07
Geographical Expansion RJ SP % CBR
1H06 1H07 2Q06 2Q07
Geographical Expansion RJ SP % CBR
Breakdown by Origin – 1H07*Breakdown by Origin – 1H07*Breakdown by Income Segment - 1S07*Breakdown by Income Segment - 1S07*
44.7%20%6%
Launches
Inventory
30% Luxury
Mid-High
Middle
5* Including AGRA * Including AGRA
55.3%44%
Economic
Landbank
27.7 92%
Usable Area (million m2)Usable Area (million m2) Potential Sales Value (R$ billion)Potential Sales Value (R$ billion)G
RA
18.1
16.3
77%
59%
ING
AG
6.5
10.7
7.9
7.3
12.2
NC
LUD
3.0
71% 74% 71%
2005 2006 1H07 2005 2006 1H07Potential Sales Value PSV CBR % CBR
IR
A Usable Area (million m2)Usable Area (million m2) Potential Sales Value (R$ billion)Potential Sales Value (R$ billion)
2005 2006 1H07
Usable Area % Exchange
NG
AG
R
7.2
18.1 18.8 92%
77% 80%
XCLU
DIN
3.0
6.57.2
71% 74% 75%
7.9
7.3
13.9 15.0
66
EX
71% 74% 75%
2005 2006 2Q07
Usable Area % Exchange
2005 2006 2Q07Potential Sales Value PSV CBR % CBR
Landbank – By Region and Segment
Total Landbank: 7.2 million m2 – 75% acquired through exchangesTotal Landbank: 7.2 million m2 – 75% acquired through exchanges
Usable PotentialBy Region*By Region*1H07
Including AGRA
UsableArea
(thd m2)
PotentialSales
(R$ mm)
Exchange(%)
% CBR
Total 10,715.3 27,664.6 71% 59%33%
21%
1H07Excluding AGRA
Usable Area
(thd m2)
Potential Sales
(R$ mm)
Exchange(%)
% CBR
São PauloRio de JaneiroOther regions
By Income Segment*By Income Segment*
Total 7,236.8 18,838.8 75% 80%
São Paulo 2,354.8 6,405.9 51% 66%
São Paulo Interior 684.8 1,498.3 46% 66%
46%
,
Rio de Janeiro 3,341.8 8,799.1 97% 98%
Minas Gerais 93.1 288.9 27% 55%
Espírito Santo 71.7 138.7 84% 55%
1%
31%13%
4%
Luxury
Mid-HighEspírito Santo 71.7 138.7 84% 55%
Rio Gde do Sul 182.5 543.3 23% 45%
Bahia 149.7 365.7 83% 68%
Maranhão 341.4 763.9 0% 51% 50%
Middle
Economic
Super Economic
77
Maranhão 341.4 763.9 0% 51%
Goiás 16.9 34.9 100% 70% * Excluding AGRA
Geographical Expansion underwayPresence in 12 states and 24 cities based on JVs and partnerships
Geographical ExpansionGeographical Expansion
- 42 Projects out of the axle SP-RJ
Geographical ExpansionGeographical Expansion
- 42 Projects out of the axle SP-RJ- R$ 3.6 billion of Potential Sales Value (Cyrela’s stake: 59.0%)- R$ 3.6 billion of Potential Sales Value (Cyrela’s stake: 59.0%)
(excluding AGRA)Recife
Natal
Fortaleza
João Pessoa
Salvador
Goiânia
Belo Horizonte
Rio de Janeiro(2)
Campinas São Paulo (1)
Vitória
NiteróiCabo Frio
SJ C Rio de Janeiro( )
Santos
P t Al
Florianópolis
SJ Campos
8
(1) IncludesJundiaí, Guarulhos and ABCD(2) Includes Nova Iguaçu
Porto Alegre
Subsequent Events
Cyrela Commercial Properties S/ACyrela Commercial Properties S/A
Listing on Novo Mercado concludedListing on Novo Mercado concluded
Trading Initiation on 08/09/07Trading Initiation on 08/09/07
Postponement of Debt Notes Issuance in local currencyPostponement of Debt Notes Issuance in local currency
Amount: ~R$ 500 millionAmount: ~R$ 500 million
Maturity: 2017Maturity: 2017
Interest payments: semi-annualInterest payments: semi-annualInterest payments: semi-annualInterest payments: semi-annual
R$ 1.2 bn loans already contracted from SFHR$ 1.2 bn loans already contracted from SFH
New PartnershipsNew Partnerships
Geographical ExpansionGeographical Expansion
Growth on Economic and Super Economic segments Growth on Economic and Super Economic segments
Launching of first lots Portal de BragançaLaunching of first lots Portal de Bragança
99
g g çg g ç
62% sold in 3 days62% sold in 3 days
Growth Strategy on Economic Segment
LaunchedLaunched inin thethe 22ndnd halfhalf ofof 20062006LaunchedLaunched in in thethe 22ndnd halfhalf ofof 2006, 2006, LIVING is LIVING is alreadyalready oneone ofof thethe largestlargest players players ofof thisthis segmentsegment
10
Growth Strategy
Cyrela seeks for a leadership position in this segmentLIVING offers units starting at R$ 55 thousand
R$ 150 thd
Unit Price per Family IncomeUnit Price per Family Income
6 -12 minimum
R$ 150 thd
Economic
4 – 6 minimum wages
wages R$ 100 thd
Super Economic4 6 minimum wages
R$ 55 thd
11
Landbank – one of the largest in the segment
Landbank – Potential Sales Value (R$ million)Landbank – Potential Sales Value (R$ million)
4 335
2,649 2,671
4,335
2331,005
Competitor
ACompetitor
BCompetitor
CCompetitor
D
Growth Expectation
Growth Projection number of unitsGrowth Projection number of unitsGrowth Projection – number of unitsGrowth Projection – number of units
16,000
+29%
5 440
10,56025,000
12,4005,440
2007 2008E 2009E
Units in Landbank Total of units
13
Client Financing
~R$ 3 billion committed for the financing of units up to R$ 350,000Agreement with private banks for client financing
Rates starting at TR + 7.95% p.a.Tenor: up to 25 yearsp yFinancing after the hand-over of the keysLoan is entirely passed on, without any co-obligation
Granted Average % t b
Credit lines guaranteed for Cyrela – LIVING’s client financingCredit lines guaranteed for Cyrela – LIVING’s client financing
BankGranted
Credit LimitRate Tenor
AverageNumber of
Units
% to befinanced
HSBC R$ 400 million TR + 8% to 10.5% p.a. 20 years 3,419 80%
ABN Amro R$ 500 million TR + 9% to 10.5% p.a. 20 years 4,273 80%
Santander R$ 2 billion TR + 9% to 10.45% p.a. 20 years 17,094 80%
G aranteed
14
GuaranteedTotal R$ 2.9 billion 24,786 80%
Client Financing
- 24 to 30 months- INCC
- 20% of unit
- 300 months- starting at TR + 9%
- 80% of unit
VER
YS
CYRELA PARTNER BANK
HA
ND
-OV
OF
KEY
- 24 monthsINCC
- 300 monthst ti t TR +7 95%- INCC
-20% of unit- starting at TR +7.95%
- 80% of unit
15
Financial Highlights
1616
Net Revenues
Net Revenues reached R$ 658.8 million in 1H07Net Revenues reached R$ 658.8 million in 1H07
2,7%
Revenue Breakdown - 1H07Revenue Breakdown - 1H07R$ million 1H07 1H06Development Sales 668.1 481.2
IncorporaçãoServiços
By ActivityRent of Properties - 25.7Services 18.5 10.0(-) Deductions (27 8) (23 7)
97,3%
ç( ) Deductions (27.8) (23.7)Net Revenues 658.8 493.1
Net Revenues(R$ million)
Net Revenues(R$ million)
659
493
659
171H06 1H07
Operating Expenses
(R$ million) 1H07 1H06Selling Expenses (72 0) (47 7)Selling Expenses (72.0) (47.7)Administrative Expenses (44.7) (32.5)Employees Participation (3.0) (1.5)Others 0.1 1.1Operational Expenses (119.6) (80.6)
Operating Expenses(R$ million)
Operating Expenses(R$ million)
120
81
18
1H06 1H07
Financial Highlights
EBITDA(R$ million)EBITDA(R$ million)
Gross Profit(R$ million)
Gross Profit(R$ million)
269
219169
144
44.4% 40.8%
1H06 1H07
29.2% 25.7%
1H06 1H07
Net Income(R$ million)
Net Income(R$ million)
Gross Profit Gross Margin EBITDA EBITDA Margin
241
140130
26.4%
36.5%
21.3%
1H06 1H07 1H07 Adj.*
Net Income Net Margin19*Adjusted for AGRA
Pre-Sales to be Recognized
(R$ million) 1H07 1H06Sales to be recognized at the Beginning of theperiod 1,597.2 1,020.0p
Net Sales recorded in the period 881.7 831.5
Revenues recognized in the period (643.8) (472.0)g p
Sales to be recognized at the End of the period 1,835.0 1,379.4
Cost of units sold to be recognized (1,088.4) (762.6)g
Selling Expenses (43.5) (27.8)
Profit to be recognized (Deferred Results) 703.0 589.1g ( )
Percentage of Gross Profit 40.7% 44.7%
20
Receivables
Receivables vs. construction costs(R$ million, as of June 30, 2007)
Receivables vs. construction costs(R$ million, as of June 30, 2007)
2,787220
Receivables Balance EvolutionReceivables Balance Evolution
2,566
2,787
(R$ million)(R$ million)
Fi i h d it
1,110
2,564Units under construction
Finished units
Construction cost to be realized
1Q07 1H07
2121
Net Debt
As of June 30, 2007, our net debt totaled R$ 41.1 millionAs of June 30, 2007, our net debt totaled R$ 41.1 million
(R$ million) 2Q07 1Q07
Long-term Debt 594.8 125.1
Short-term Debt 86.5 124.1
Total Debt 681.2 249.2
Cash & Cash Equivalents 640.1 337.9
Net Debt 41.1 (88.7)
2222
Share Price Performance and Trading Volume
Price per Share - CYRE3
25 140.000.000IPOSep/05 Follow-On
CCP spin-offAug/07
15
20
e - R
$)
80 000 000
100.000.000
120.000.000
(Trading
Sep/05Jul/06
5
10
(Clo
sing
Pric
e
40.000.000
60.000.000
80.000.000 Volume - R
$)
-
5
an-05
Mar-05
un-05
ug-05
Oct-05
ov-05
an-06
eb-06
Mar-06
ay-06
un-06
ug-06
ep-06
ov-06
ec-06
eb-07
Mar-07
ay-07
un-07
ug-07
-
20.000.000
Average Daily Trading Volume - ADTV (*)Average Daily Trading Volume - ADTV (*) CYRE3 (*)CYRE3 (*)
Jan
Ma Jun
Aug Oct NovJa
nFeb MaMay Ju
nAug Sep NovDecFeb MaMay Ju
nAug
Volume (R$) Price (R$)
2323
2006: R$ 16.6 million2007: R$ 28.0 million2006: R$ 16.6 million2007: R$ 28.0 million
Since IPO: +242.2%In 2007: +26.3%
Since IPO: +242.2%In 2007: +26.3%
(*) Until August 13, 2007. CCP’s spin-off, which took place on August 09, 2007, was not considered.
Contate RI
Cyrela Brazil Realty S.A. Empreendimentos e Participações
A B i d i F i Li 3 400 10th flAv. Brigadeiro Faria Lima, 3.400, 10th floorSão Paulo - SP – BrasilZIP Code: 04538-132
Luis Largman Juliana De ZagottisCFO and Investor Relations Officer IR ManagerPhone: +55 (11) 4502-3153 Phone: +55 (11) 4502-3516Phone: +55 (11) 4502-3153 Phone: +55 (11) 4502-3516e-mail: [email protected] e-mail: [email protected]
www.cyrela.com.br/ir
Statements contained in this press release may contain information which is forward-looking and reflects management's current view andestimates of future economic circumstances, industry conditions, company performance, and the financial results of Cyrela Brazil RealtyThese are just projections and, such as, exclusive based on managements expectations of Cyrela Brazil Realty regarding future businessand continuous access to capital to finance the Company’s business plan. Such future consideration rely on, substantially, changes of
2424
and continuous access to capital to finance the Company s business plan. Such future consideration rely on, substantially, changes ofmarket conditions, government rules, competitors pressure, segment performance and the Brazilian economy, among other factors, inaddition to the risks presented on the released documents filed by Cyrela Brazil Realty, and there for can be modified without prior notice.
Appendix
2Q07 Launches
Region # LaunchesPotential
Sales$
% Cyrela % Sold
Including AgraIncluding Agra
(R$ mn)
São Paulo 9 403.6 44.9% 51.0%
São Paulo -Countryside 3 157.6 49.8% 30.7%y
Rio de Janeiro 5 357.9 65.0% 13.1%
Espírito Santo 1 96.5 65.0% 59.9%
Porto Alegre 1 28.6 50.0% 95.0%g
Total 19 1,044.3 54.5% 33.4%
Excluding AgraExcluding Agra
PotentialRegion # Launches
PotentialSales
(R$ mn)% Cyrela % Sold
São Paulo 7 225.9 69.7% 43.2%
São Paulo -Countryside 2 87.1 79.3% 47.5%
Rio de Janeiro 4 302.7 76.0% 16.6%
Espírito Santo 1 96 5 65 0% 59 9%
2626
Espírito Santo 1 96.5 65.0% 59.9%
Porto Alegre 1 28.6 50.0% 95.5%
Total 15 740.9 72.0% 35.1%
Joint Ventures7 joint ventures Optimization of knowledge on sector and region New Joint Ventures: Concima and Cury
RegionRegion% Cyrela% Cyrela SegmentSegment
São Paulo/Salvador
São Paulo/Salvador19.0%19.0% Mid-High / HighMid-High / High
São PauloSão Paulo
Porto AlegrePorto Alegre
50.0%50.0%
50.0%50.0%
Mid-High/HighMid-High/High
Middle/Mid-HighMiddle/Mid-High
São PauloSão Paulo79.0%79.0% Middle/EconomicMiddle/Economic
São Paulo/ São Paulo/ 80%80% E iE i
São Paulo São Paulo 50%50% Super EconomicSuper Economic
Jundiaí/Campinas Jundiaí/Campinas 80%80% EconomicEconomic
27
Typical Economic Project
LaunchingLaunching RecognitionRecognition DeliveryDelivery FinancingFinancing
Shorter operating cycle: 24 months
LaunchingLaunching RecognitionRecognition DeliveryDelivery
6 – 9 months
FinancingFinancing
C t ti
C t t d
18M 24M Up to 28M12M6M0M
6 9 monthsPre-Launching
Construction
Contracted Sales
(cumulative)- 80 90 100100 100
%Construction Cost - - 23% 100%55% 100%Cost
Revenues(cumulative) - - 19 10049 100
Assumptions for this example:P t ti l S l R$100 illi
Receipts(cumulative) - 6 11 2013 100
28
Potential Sales: R$100 millionLand exchange: 100%, Unit price 80% financed by partner banksClient is fully financed by the banks after the assignment of the financing to them