Itaú BBA 2nd REAL ESTATE CONFERENCE. Itaú BBA 2nd REAL ESTATE CONFERENCE

Transcription

1 Itaú BBA 2nd REAL ESTATE CONFERENCE Itaú BBA 2nd REAL ESTATE CONFERENCE

2 Brazil s Annual GDP - % (1) 7.5% 2.7% 2.7% 1.0% 0.1% 1.0% BRAZILIAN ECONOMIC SCENARIO FIRST SIGNS OF ECONOMIC RECOVERY INDICATE A POSSIBLE MARKET REBOUND -3.6% -3.4% Consumer Confidence Level (2) 164,0 158,0 162,0 137,0 113,0 76,7 82,3 83, (1) (2)

3 MORTGAGE SCENAIRIO SBPE Savings Balance Billion (1) HIGHER LEVEL OF SAVINGS IN THE LAST TEN YEARS WITH THE LOWEST LEVEL OF SELIC AND INFLATION INDICATING A POSSIBLE IMPROVEMENT IN CREDIT CONDITIONS, WHICH WOULD BOOST THE SALE OF PROPERTIES Proportion of rescission of sales contract (2) 27.7% 20.7% 22.9% 17.3% 13.6% 10.6% 11.5% 10.9% 13.4% 9.4% 9.0% 6.3% 5.0% 3.8% 1.3% 0.1% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q % 5.91% Selic Vs. Inflation - % p.a. Selic Inflation 11.00% % 10.00% 6.50% 5.84% 5.91% 6.41% (3) (4) 11.75% % 10.60% % 6.29% % 2.95% 2017 (1) (2) (3) (4)

4 Units Launched Units Sold LOWER LAUNCHES VOLUME AND CONSTANT SALES SPEED LED TO 30,000 DECLINE IN INVENTORY UNITS COMPARED TO Inventory Units Análise de dados extraída do GeoImóvel * Vendas líquidas de distrato

5 SECONDARY MARKET SALES GROWTH ON THE MAIN BRAZILIAN MARKETS 1 st - SÃO PAULO 2016: R$ bi 2017: R$ bi 2017/2016 : + 4.7% 2 nd - RIO DE JANEIRO 2016: R$ bi 2017: R$ bi 2017/2016 : + 3.6% 3 rd - GDE SÃO PAULO 2016: R$ bi 2017: R$ bi 2017/2016 : + 1.6% 2016: R$ 154 bi 2017: R$ 156 bi + 1.3% 7 th - CAMPINAS 2016: R$ bi 2017: R$ bi 2017/2016 : % 8 th - GOIÂNIA 2016: R$ bi 2017: R$ bi 2017/2016 : + 0.4% 9 th - SALVADOR 2016: R$ bi 2017: R$4.908 bi 2017/2016 : % 4 th - BELO HORIZONTE 2016: R$ bi 2017: R$ bi 2017/2016 : -7.3% 10 th - NITERÓI 2016: R$ bi 2017: R$ bi 2017/2016 : -9.8% 5 th - PORTO ALEGRE 2016: R$ bi 2017: R$ bi 2017/2016 : -14.7% 6 th - BRASÍLIA 2016: R$ bi 2017: R$ bi 2017/2016 : +14.2% 11 th - GRANDE RIO 2016: R$ bi 2017: R$ bi 2017/2016 : - 4.6% Reference: ITBI Analysis: Intelligence Hub

6 MARKET SUMMARY PERSPECTIVES 2.9% growth prediction for brazilian economy in 2018 (1) Reduction of interest rate to 6.50% R$ 564 BI of SBPE savings months of inventories SP 19 RJ 34 SP and RJ 60% of Secondary National Market (1) Fonte:

7 BRASIL BROKERS GROUP IS PRESENT IN REAL ESTATE LAUNCHES, INVENTORIES, SECONDARY MARKET, CORPORATE BUSINESSES, RENTAL AND MORTGAGES. Sales Force Footprint Partnerships Associated Brokers 16 Subsidiaries 9 States 37 Stores 450 Homebuilders 8 years with HSBC/Bradesco SP Share in BBRK SP is our main place of action 54% of sales

8 PERFORMANCE BRASIL BROKERS IN THE PRIMARY MARKET Evolution launched PSV and launched units Contract Sales and SOL Launched PSV (R$ MM) Launched units 42.7% % % Sales Primary Market (R$MM) 47.5% SOL 37.2% 38.0% 31.2%

9 Contracted Sales Secondary Market LEASING AND SECONDARY MARKET SHOWING DIVERSIFICATION OF ACTIVITIES Leasing by Region (Dec/2017) properties RS PA 4.0% 14,0% SP 15,0% 67,0% GO

10 Contract PSV (R$ billion) 12,3 Net Revenue (R$ million) REDUCTION OF LAUNCHES AND SALES PRESSURING RESULTS AND CASH POSITION DESPITE THE STRONG COSTS REDUCTION. 7,5 4,9 3, Costs and Expenses (R$ million) 241, Cash Position (R$ million) 129, ,0 148,9 140,6 98,9 55,6 57,

11 MAIN FOCUS MARKET SHARE NEW SEGMENTS SÃO PAULO EXPENSION Gain on Share of Wallet Constant search of New Revenues Narrowing relations with Developers using Market Inteligence

12 MARKET INTELLIGENCE AND INNOVATION RETAIL WHOLESAIL BRASIL BROKERS - ABSTRACT SALES: USED AND NEW PROPERTI ES MORTGAGE RENTAL CORPORATE LOTS BBRK CAPITAL INDIVIDUAL CORPORATION 1

13 New Digital Presence B2B Platform Brand Repositioning WHY BRASIL BROKERS CAN TAKE ADVANTAGE OF A REAL ESTATE MARKET IMPROVEMENT Mortgage Credit Leadership Restructuring CEO - CFO - COO HR - MKT - IT 450 partner developers People and Management Model Costs and Expenses 2015 R$177 MM 2016 R$149 MM 2017 R$141 MM Decrease of new Lawsuits

14 Search and intelligent filters Favorite list of properties for monitoring 40 thousand properties offered NEW DIGITAL PRESENCE 175 thsd access on feb/18 Vs. 60 thsd on sep/17 New service channel with 24-hour online chat

15 Advisory and brokerage service for the purchase and sale of large real estate assets Team composed of executives with a lot of experience in the real estate market B2B PLATFORM BB CORPORATE Over 800 thousand m2 83 closed deals R$ 5,1 B PSV

16 LOTS PREMIUM SERVICE - FINANCIAL VIABILITY (SERVICES) NATIONAL SCOPE Knowledge and Leadership Architectural Consultancy (Product) Market Intelligence National Network BBRK PLATFORM DEVELOPERS (BUYERS) Judicial Consultancy (Preliminary Position) Services (ex: topography and sondage) FUNDS (INVESTORS/ BUYERS) OWNERS (SELERS) BUYERS (Shopping, LogIstics, Wholesaler, BTS, SLB)

17 DEVELOPER S ADVISORY TO THE MARKET Sale of receivables Obtainment of working capital with inventory chattel mortgage Agreement with 25 Investment Funds, with different profiles BRAND REPOSITIONING 450 possible developer clients

18 Provide the best customer service focusing on luxury properties R$ 1.3 BI inventory BRAND REPOSITIONING R$ 5.2 MM average ticket Brokers are partners of the company (Comercial Executives), what avoids new lawsuits

19 Jan/15 Mar/15 May/15 Jul/15 Sep/15 Nov/15 Jan/16 Mar/16 May/16 Jul/16 Sep/16 Nov/16 Jan/17 Mar/17 May/17 Jul/17 Sep/17 Nov/17 Jan/18 Mar/18 (1) BTG Pactual Equity Research April 2, analysis consisting of simulating the purchase of a R$500,000 residential unit in São Paulo for an individual earning R$10,000/month and assuming no relationship with the banks (2) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 BRAZILIAN SCENARIO 12.0% 11.5% 11.0% 10.5% 10.0% 9.5% 9.0% 8.5% Interest rates charged by financial institutions (mortgage rates + TR) (1) Mortgage Credit Volume Brazilian Market 2017 (R$ million) (2) +11% TOTAL: 16,144 TOTAL: 17, Due to the fall of spread, a greater number of families will start being able to have mortgage credit to buy properties (affordability).

20 MORTGAGE CREDIT - BRADESCO Mortgage Credit Volume Bradesco 2017 (R$ million) (1) 18.5% 17.1% 16.2% 20.6% 21.6% 20.5% 17.6% 18.0% 16.6% 16.9% 16.1% 14.7% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bradesco (R$ million) Share in the Brazilian market (1) 20

21 BRASIL BROKERS Mortgage Credit Volume Credimorar 2017 (1) 11.6% 11.0% 11.8% 7.5% 7.9% 8.6% 9.4% 9.4% 5.8% 68,4 5.7% 6.1% 4.5% 56,6 56,8 47,3 50,1 46,0 Mortgage Credit Volume Strong presence in all brazilian territory (1) 20,3 22,5 28,8 36,0 42,4 26,6 2016: R$ : R$ Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Market Volume Credimorar Mortgage Credit Volume Share in Bradesco AVERAGE LTV 62% PRODUCTIVE PARTNERS DEC DEC TOTAL MORTGAGE CREDIT REVENUE 2016: R$7,228, : R$14,910,661 (1) Fonte: dados internos da Companhia 21

22 HOMEBUILDERS AS PARTNERS 14 from the top 15 developers in RMSP have their own Real Estate Agencies Even with their own Real Estate agencies, Brasil Brokers works with 10 from these 15 developers 72% of Brasil Brokers revenue comes from 450 nonlisted companies 72% Non-listed 28% Listed Revenue Breakdown 2016 None of our developer partners is responsible for more than 10% of our revenue generation

23 Costs and Expenses (R$ million) COSTS AND EXPENSES RESTRUCTURING REDUCTION OF THE TWO MAIN COSTS OF THE COMPANY, TOGETHER WITH SEVERAL OTHER INITIATIVES. 241,0 Number of Employees(R$ thousand) 1.2 Number of Stores , ,9 140,

24 60 YEARS EXPERIENCE IN REAL ESTATE MARKET Claudio Hermolin Andreas Yamagata CEO of Brasil Brokers Participações S.A. since December 6, 2016 Executive career in major construction, real estate development and energy distribution Degree in Civil Engineering from PUC-RJ and graduate and extension degrees from FGV and PUC-RJ CFO, Controller and IRO of Brasil Brokers Participações S.A. since December 6, 2016 Over 20 years of experience in the real estate market, having worked at some of the leading companies in the industry Degree in Civil Engineering from UFRJ and graduate and extension degrees from FIA, Kellog and USC Sol Price. Hebert Braz Vice CEO of Brasil Brokers since April years of experience in the real estate market and has extensive knowledge of all the stages of the business Degree in Civil Engineering and an MBA in Corporate Finance from PUC

25 MODIFICATION ON THE MAIN GROUP S LEADERSHIP Guilherme Blumer Ana Claudia Freire Digital Marketing Director since October 2017 Built his career in real estate developers and advertising agencies Graduated in Marketing and Advertising from Mackenzie University General Human Resources Director at Brasil Brokers in 2017 Over 25 years of experience in HR Holds master s and PhD degrees in Production Engineering from COPPE/UFRJ Carlos Lachter IT Director since April 2017 Over 20 years of experience in the area Holds an MBA in Business Management from IBMEC Breno Vaz Diretor Jurídico, tendo ingressado na Brasil Brokers em 2013 Atuou previamente na Ágora Corretora e na Gulf Capital Partners Graduated in Law at PUC-Rio, and holds an MBA in Corporate Management from FGV

26 PEOPLE AND MANAGEMENT STRATEGY In order to reach maintainable results, it id necessary to balance what and how Attraction and selection Development (Ubrokers) Management model (PDCA) Performance Assessment Organizational Culture New positioning of the Company

27 EDUCATION PLATFORM FOR ALL BROKERS, FROM LESS TO MORE EXPERIENT 79 themes Four Months Performance 203 titles 2,038 access 2,221 training hours

28 ATTRACTION, RETENTION AND DEVELOPMENT Rigid selection and recruitment of employees Leadership performance Monthly evaluation Evaluation of Abilities and Potential, aiming to achieve sustainable results for a new company s positioning in the market

29 Points of labor reform that positively affected us LABOR REFORM Possibility of being sentenced and pay fines when carrying a fake lawsuit People feel fearful for being penalized in case of loss How we prepared the company to face the labor liabilities Creation of a specific management and search for professionals who are specialized in the theme Review of services, segmenting offices by the sensibility of processes Management of indicators of labor liabilities Approach to the judiciary, explaining the reality of the real estate market Actualization of events and exchange of experience with other companies to discuss labor liabilities in the real estate market Approach to brokers syndicates

30 Monthly average of new labor lawsuits in Brazil (1) Evolution of labor liabilities in Brazil % Announcement of Minister Ives Gandra Martins Filho, former TST president: The simple fact of, nowadays, the worker has to pay the attorney honorary in case of asking something he had already received, makes the process more responsible. Alsom the companies will have to be more responsible when rehearing. If the worker won and the company goes to the appeal court to delay it, it will also be punished and will receive a fine. (1)

31 BRASIL BROKERS IS FOCUSED ON TRANSFORMING THE BRAZILIAN REAL ESTATE MARKET, BECOMING A MARKET PLACE OF THE SECTOR AND LOOKING FOR IMPROVEMENT OF ALL OF OUR INTERN PROCESSES.