earnings release presentation - second quarter 2009 (2q09)

Earnings Release 2Q09August 17, 2009

2Q09Comments

EarningsRelease

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Rubens Menin

Highlights of the Quarter

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2Q09EarningsRelease

Follow-on successfully completed – R$ 595 million gross proceeds (approx. R$570 net proceeds);

Record quarter for operational and financial indicators: Contracted Sales, Net Operating Revenueand Net Income;

Exceptional profitability, with 19.0% Net Margin;

Significant increase in operational capacity, keeping strict control of SG&A expenses. 3.2% fall in G&A expenses compared to 2Q08;

In spite of Contracted Sales record volume, 2Q09 selling expenses 15% lower than 2Q08 expenses;

Extremely healthy financial situation as of 2Q09 closing. Cash and Cash Equivalents amounted to R$673.2 million as of June 30, 2009. Negative Net Debt of R$6.3 million.

Best placed and prepared company to benefit from the growth of demand in the lower-income segment.

Follow-on

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2Q09

Follow-on successfully completed in July, 2009

Net proceeds of approx. R$ 570 mn

R$ 507 mn proceeds in June 2009 and the rest in July 2009

Shareholders breakdownafter Follow-on

EarningsRelease

Free Float55,1%

Rubens Menin T. de Souza

37,5%

Executives and B. Members

7,4%

Summary of the Offering

Primary Offering (thousand shares) * 18,000

Additional Shares (thousand shares) * 3,600

Over-allotment option (thousand shares) ** 2,700

Total of the Primary Offering (thousand shares) 24,300

Issuance Price - R$ 24.50

Value of the Primary Offering (in R$ mn) 595.4

* Shares issued in June 2009

** Shares issued in July 2009

Operational and Financial Performance

Land bank

Launches

Contracted Sales

Net Operating Revenue

Gross Income

Productivity Indicators

EBITDA

Net Income

Loans and Financing and Net Debt

Unearned results

Guidance

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2Q09EarningsRelease

... by Financing Source in Jun/09

% of swaps / land acquisition cost% of land acquisition cost/ PSV

... On June 30, 2009:

• Land bank of R$8,377.2 million• 85,669 potential units• Average Price of R$97.8 thousand (focus on lower-income segment)

Land Bank (%MRV)

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Operational and Financial Performance 2Q09

75%

25%

Minha Casa, Minha Vida

SFH - SBPE

8%

37%

9.9 9.5 9.0 8.7 8.4

Jun/08 Sep/08 Dec/08 Mar/09 Jun/09

Land Bank %MRV (R$ billion)

... by Price Range in 2Q09... in 2Q09:

• Launching of 50 new projects• PSV of R$614.0 million with 5,977 units• 88% of unit launched with average prices

up to R$130 thousand.

Launches (%MRV): R$614.0 million in 2Q09

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... by Financing Source in 2Q09


72%

28%

SFH - FGTS

SFH - SBPE

1,489.3

882.6 797.7

614.0

1H08 1H09 2Q08 2Q09

-23.0%

-40.7%

10%

78%

12%

Bellow R$ 80,000

From R$ 80,001 to R$ 130,000Over R$ 130,000

... in 2Q09:

• Total of R$851.5 million in contracted sales• 8,874 units sold• Average sales speed of 20% per month

Contracted Sales (%MRV): R$851.5 million in 2Q09

... by average Price in 2Q09

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... by Financing Source in 2Q09(number of units)

76%

24%

SFH - FGTS

SFH - SBPE

820.9

1,281.6

480.7

851.5

1H08 1H09 2Q08 2Q09

56.1%

77.1%

24%

60% 16%

Below R$80,000

From R$80,001 to R$130,000Over R$130,000

Inventory at Market Value (%MRV)

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Inventory distribution of units for sale as of Jun/30/09 per construction phase

Inventory at Market Value as of 06/30/09 = R$ 1.3 billion

Inventory distribution of units for sale as of Jun/30/09 per source of funds


48%52%Construction not initiated

Under Construction

42%

58%Minha Casa, Minha Vida

SFH - SBPE

Financial Indicators

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Net Operating Revenues(R$ million)

Gross Income(R$ million)


465.4

662.1

275.9

389.6

1H08 1H09 2Q08 2Q09

42.3%

41.2%

168.8

220.5

97.7

128.8

1H08 1H09 2Q08 2Q09

30.6%

31.8%

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Productivity Indicators

Selling Expenses (R$ million)

And Selling Expenses/ Net Revenue (%)

G&A Expenses (R$ million)

And G&A Expenses / Net Revenue (%)


48.4 47.8

27.0 23.0 10.4%

7.2%9.8%

5.9%

1H08 1H09 2Q08 2Q09

-1.2%

-15.0%

40.0 43.2

22.3 21.6 8.6%

6.5%8.1%

5.5%

1H08 1H09 2Q08 2Q09

7.8%

-3.2%

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Financial Indicators

EBITDA (R$ million)

and EBITDA Margin (%)

Net Income (R$ million)

and Net Margin (%)


93.2

122.9

50.5

73.9

20,0% 18,6%

18,3% 19,0%

1H08 1H09 2Q08 2Q09

32.0%

46.4%89.3

158.0

53.5

97.5

19.2%

23.9%

19.4%

25.0%

1H08 1H09 2Q08 2Q09

77.0%

82.2%

(R$ million) jun/09 mar/09 Chg. %

Debentures 404.2 314.4 28.6%

Promissory Notes - 100.0 -100.0%

Construction Financing 222.3 165.9 34.0%

Others 45.1 20.7 118.1%

Total debt 671.6 600.9 11.8%

Expenses from debenture's issuance (4.7) (2.3) 102.0%

Total Debt (Net of Fees) 666.9 598.6 11.4%

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Loans and Financing and Net Debt

Loans and Financing Breakdown

Payments Schedule

Net Debt


(R$ million) jun/09

12 months 166.1

13 to 24 months 167.6

25 to 36 months 188.6

Over 37 months 144.5

Total Debt 666.9

(R$ million) jun/09 mar/09 Chg. %

Total debt 666.9 598.6 11.4%

(-) Cash and cash equivalents (673.2) (221.2) 204.4%

Net Debt (6.3) 377.4 -101.7%

Shareholder's Equity 2,186.3 1,603.2

Net Debt / Shareholder's Equity -0.3% 23.5% -23.8 p.p.

Unearned Results

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(R$ million) jun/09 mar/09 Var. %

Unearned Sales Revenues 1.422,0 1.013,7 40,3%

Unearned Costs or Units Sold (768,7) (531,0) 44,8%

Unearned Results 653,3 482,7 35,3%

Unearned Results Margin 45,9% 47,6% -1,7 p.p.

Guidance 2009

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2Q09Operational and Financial Performance

Guidance

Sales (%MRV) - R$ million 2,400 ~ 2,900

EBITDA Margin % 24% ~ 28%

The material that follows is a presentation of general background information about MRV Engenharia e Participações S.A. andits subsidiaries (collectively, “MRV” or the “Company”) as of the date of the presentation. It is information in summary form anddoes not purport to be complete. No representation or warranty, express or implied, is made concerning, and no reliance shouldbe placed on, the accuracy, fairness, or completeness of this information.

This presentation may contain certain forward-looking statements and information relating to MRV that reflect the current viewsand/or expectations of the Company and its management with respect to its performance, business and future events. Forwardlooking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results,performance or achievements, and may contain words like “believe,” “anticipate,” “expect,” “envisages,” “will likely result,” orany other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties andassumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans,objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company nor any ofits affiliates, directors, officers, agents or employees shall be liable before any third party (including investors) for anyinvestment or business decision made or action taken in reliance on the information and statements contained in thispresentation or for any consequential, special or similar damages.

This presentation does not constitute an offer, or invitation, or solicitation of an offer to purchase any securities. Neither thispresentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.

The market and competitive position data, including market forecasts, used throughout this presentation was obtained frominternal surveys, market research, publicly available information and industry publications. Although we have no reason tobelieve that any of this information or these reports are inaccurate in any material respect, we have not independently verifiedthe competitive position, market share, market size, market growth or other data provided by third parties or by industry or otherpublications. MRV does not make any representation as to the accuracy of such information.

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Disclaimer

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2Q09EarningsRelease

Leonardo CorrêaExecutive Vice President, CFO and Investor Relations Officer

Mônica SimãoFinancial Director

Tel.: (+ 55 31) 3348-7150

E-mail: [email protected]

www.mrv.com.br/ri

Contacts

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2Q09EarningsRelease

mailto:[email protected]�