Second Quarter 2008 Results

Transcription

1 Second Quarter 2008 Results Earnings Release and Supplemental Financial Information Investor Relations Contact: Julia Freitas 1

2 Overview of 2Q08 Results - Wilson Amaral, CEO Financial and Operational Performance 2

3 Highlights of the Quarter 2Q08 launches increased 102% over 2Q07 Launches increased to R$953 million in 2Q08 from R$471 million in 2Q07 Pre-sales increased 62% from 2Q07 Pre-sales increased to R$554 million in 2Q08 from R$343 million in 2Q07 Net operating revenues rose 63% from 2Q07 Net operating revenues increased to R$436 million in 2Q08 from R$267 million in 2Q07 2Q08 EBITDA reached R$74 million (16.9% EBITDA margin) a 106% increase from 2Q07 Net income increased to R$59 million in 2Q08, a 67% increase from R$35 million in 2Q07 Gafisa consolidates presence in low income segment, with Fit showing R$255 million in launches and R$99 million in pre-sales in 2Q08 Gafisa completed 5 new buildings and AlphaVille completed two developments with a total of 1,180 units and PSV of R$ 224 million. Note: 2007adjusted for capitalized interest 3

4 Recent Developments Fit started contributing to the results of Gafisa, with sales reaching R$99 million. Fit now has 18 developments in 13 cities. Bairro Novo on schedule to deliver first phase of Cotia project. Bairro Novo also launched the first phase of the new Camaçari project, expected to have 4,500 units when completed. Geographical diversification: Presence of the Company has expanded to 20 states with 143 developments nationwide, while at the end of 2006 the Company was present in 10 states with 70 developments. Product diversification: Gafisa s high-end product now represents 63% of launches and 70% of pre-sales, while in December 2006 the same product line represented 100% of launches, pre-sales and revenues. SAP and SOX implementation : Implementation of first phase of SAP on June 2 nd ; phases 2, 3 will occur later this year. Moody s Ba2 international rating and Aa3.br Brazil national scale rating. 4

5 Mortgage Lending Expanding Rapidly Strong growth in mortgage lending still does not meet pent-up demand Housing Credit (R$ bn) CAGR ( ): 43% 25.3 Savings Accounts SBPE Balance (R$ bn) June 2008 SBPE Accounts grew 21% from June % +57% % % % % 6.9 6,0 3% 36% % % % % % % % Jun-07 Jun-08 Mortgages using resources from FGTS Mortgages using resources from Savings Accounts Jun-08 Saving Deposits (R$bn) Sources: ABECIP, Central Bank of Brazil, CEF and FGV. 5

6 Increasing Mortgage Penetration Gafisa is benefiting from higher mortgage availability and is working with banks to develop innovative mortgage products Pre Sales financed by Gafisa vs. financed by Banks 54% 34% 16% 15% 20% 21% 32% 30% 64% 64% 16% 34% Reduction in accounts receivables duration, improves Gafisa s working capital Higher returns H08 Gafisa direct financing longer than 36 months Gafisa direct financing up to delivery of keys Mortgage Loans Higher asset turnover Improving terms for clients with lower rates and longer payment periods 6

7 Delivering on Growth Strategy: Strong Launches Launches (R$ million) New Markets Rio de Janeiro São Paulo % 102% Fit % AlphaVille Gafisa 62% Q07 2Q08 7

8 Delivering on Growth Strategy: Strong Pre-sales Pre-sales (R$ million) New Markets Rio de Janeiro São Paulo % 1% Bairro Novo % % AlphaVille Fit Gafisa % 2Q07 2Q08 8

9 One of the Most Geographically Diverse Homebuilders, Present in 20 states 143 projects under development Fit Jardim Botânico João Pessoa - Alagoas *States in which Gafisa or its subsidiaries already launched projects. 9

10 Gafisa has a Diversified, High-Quality Land Bank 225 different sites, in 21 states, in 66 cities Company Potential Units 100% Potential Units % Gafisa Future Sales %Gafisa R$ bn Swap Agreements % Gafisa 28,452 23,732 7,860 47% AlphaVille 32,979 16,192 2,926 97% Fit Residencial 19,475 15,116 1,702 12% Bairro Novo 20,466 10, % Total 101,372 65,273 13,156 75% Low income segment represents 39% of potential units in land bank 10

11 Our Product Lines: Focused Management Teams for Each Market Mid, Mid High and High Vertical Metropolitan areas Financing: Banks Unique Projects Unit Prices: > R$200K 60% owned by Gafisa Mid High and High Horizontal (lots) Outside Metropolitan areas Financing: direct Unique Projects Unit prices: R$70K R$500K 100% Gafisa Affordable Entry Level Vertical Metropolitan Areas and Outskirts Financing: CEF and Banks Standardized Projects Unit Prices: R$80K R$200K 50/50 JV with Odebrecht Low Affordable Entry Level Horizontal / Vertical Metropolitan areas and Outskirts Financing: CEF and Banks Standardized Projects Unit Prices: < R$100K Own sales force In São Paulo, Rio de Janeiro and Northeast Selling Machine Management of Channels & CRM Management of Outsourced & Local SC 11

12 Our Differentials Industry Leadership and Strong Brand Recognition Professional Management and Established Organization World-class Shareholders and the Highest Standards of Corporate Governance Geographic Diversification Supported by Strategic Land Bank Growth Through Product Diversification 12

13 Overview of 2Q08 Results Financial and Operational Performance Duilio Calciolari, CFO 13

14 2Q08: Operating Highlights Net Revenues (R$ million) Gross Profit (R$ million) 33% 63% % 85% Q07 2Q08 2Q07 2Q08 Net Revenues Gross Profit Gross Margin Adjusted EBITDA¹ (R$ million) Adjusted Net Income¹ (R$ million) 13.4% 106% 16.9% 13.2% 67% 13.5% Q07 2Q08 2Q07 2Q08 Adjusted EBITDA Adjusted EBITDA Margin Adjusted Net Income Adjusted Net Margin ¹ Adjusted for Capitalized Interest 14

15 Gafisa, AlphaVille, Fit, Bairro Novo Revenue Contribution Lower income begins contributing to pre-sales and revenues 1H08 Gafisa AlphaVille Fit Bairro Novo Total Launches 1,086, , ,850-1,530,582 Pre-Sales 734, , ,883 10,406 1,055,935 Revenues 593, ,693 38,621 8, ,183 Launches Share 71% 10% 19% - 100% Pre-Sales Share 70% 12% 17% 1% 100% Revenue Share 79% 15% 5% 1% 100% Revenues/ Launches 55% 71% 14% - 49% Revenues/ Pre-Sales 81% 86% 22% 86% 72% this contribution is expected to increase in future periods. 15

16 Strong Pre-Sales Positively Impact Backlog R$667 million of results to be recognized (76% growth compared to 2Q07) 2Q08 1Q08 2Q07 2Q08 x 1Q08 2Q08 x 2Q07 Gross sales to be recognized end of period 1, , , % 75% Sales net of 3.65% sales tax to be recognized 1, , , % 75% Cost of units sold to be recognized - end of period (1,190.1) (1,060.7) (681.4) 12% 75% Backlog of results to be recognized % 76% Backlog margin - yet to be recognized 34.6% 34.9% 34.4% (30) bps 20 bps 16

17 Gafisa s Operation is Highly Efficient SG&A over launches and sales begins to be diluted SG&A expenses 2T08 2T07 1H08 1H07 Selling Expenses (R$ 000) 34,811 17,330 58,858 29,336 G&A Expenses (R$ 000) 33,209 27,144 64,938 46,280 SG&A Expenses (R $000) 68,020 44, ,796 75,616 Selling Expenses / Launches 3.7% 3.7% 3.8% 3.8% G&A Expenses / Launches 3.5% 5.8% 4.2% 6.0% SG&A / Launches 7.1% 9.4% 8.1% 9.8% Selling Expenses / Sales 6.3% 5.1% 5.6% 4.9% G&A Expenses / Sales 6.0% 7.9% 6.1% 7.7% SG&A / Sales 12.3% 13.0% 11.7% 12.7% Selling Expenses / Revenues 8.0% 6.5% 7.8% 6.0% G&A Expenses / Revenues 7.6% 10.2% 8.6% 9.4% SG&A / Revenues 15.6% 16.7% 16.4% 15.4% Deferred selling expenses 2Q08 2Q07 Deferred Selling Expenses (R$ 000) 35,664 25,259 Deferred Selling Expenses / LTM Launches 1.2% 1.9% Deferred Selling Expenses / LTM Sales 1.7% 2.1% Deferred Selling Expenses / LTM Revenues 2.5% 2.9% Gafisa adopts one of the most conservative accounting practices in the industry 17

18 Strong Financial Position Gafisa is prepared to deliver on its aggressive growth strategy with a strong cash position Total Debt 2Q08 1,084 1Q Obligation to Investors Cash and Cash Equivalents Net Debt & Obligation to Investors (Cash) Shareholder s Equity Total Capitalization Net Debt & Obligation to Investors / Equity 609 1,631 3, % 369 1,573 2, % over R$200 million of receivables of completed units available for securitization anytime and a standby facility of R$1 billion 18

19 Our Shares: Stock has highest trading volume in real estate sector Volume (R$ MM) Price NYSE Listing: Gafisa is the only Brazilian Real Estate Company listed in the United States. Av g. daily v olume from Jan. - Jul. 31 of 2008 (R$ MM) Market Cap (R$ MM ) 12,000 9,000 6,000 3,000 0 Gafisa Cyrela Rossi MRV PDG Agra Tenda Inpar Tecnisa Lopes CCDI Abyara Klabin Even Brascan Invest Tur Company Rodobens EZ Tec Trisul São JHSF CR2 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Gafisa has an average daily trading volume of R$89 million and a market capitalization, as of July 31 st, of R$ 3.4 billion. 19

20 Outlook for 2008 Launch guidance for 2008 increased from R$3.0 billion to R$3.5 billion One third of the increase in guidance will come from the low income segment; Two thirds from the high income segment. EBITDA margin guidance of 16-17% for

21 Safe-Harbor Statement We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management, and on information currently available to us. Forward-looking statements include statements regarding our intent, belief or current expectations or that of our directors or executive officers. Forward-looking statements also include information concerning our possible or assumed future results of operations, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,' ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future results and shareholder values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict. 21