Corporate Presentation 2Q17
Main GuideLines 2 Main guidelines between 2015 and 2017: Contraction in launching levels; Contraction in landbank aquisition; Sale of ready units; Management of clients payment behavior; Management of cancellations; Monetization / Rental of company s assets. In sum, the guideline has been to preserve equity and manage cash generation Main guidelines for the coming cycle: Pick up in launches; Investment in new landbank/projects; Sale of ready units with greater velocity and rebounding prices; Recuperation of Net Sales; Development of corporate project;. In sum, the guideline will be to restore Return on Equity
Operational Record (Last Twelve Months) 3 1.600 1.507 1.400 1.200 1.000 800 600 887 748 1.136 949 1.022 1.033 795 837 1.157 884 856 748 814 800 1.201 1.224 1.166 915 876 844 1.056 1.253 1.261 981 1.043 1.371 979 Launches 1.089 967 981 784 810 806 727 745 545 915 683 486 777 523 732 Gross Sales 675 678 686 628 588 548 400 367 399 Net Sales 200 197 264 177 143 143 205 153 111 0-200 161 105 76 59 70 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2T17-55 -70-74 -83-85 -93-102 -121-130 -144-153 -135-153 -153-173 -217-233 -236-233 -254-400 -600-333 -411-517 Cancellations -477-552 -530-581
Financial Record (Last Twelve Months) 4 53% 53% 54% 53% 53% 52% 52% 52% 52% 52% 53% 53% 50% 50% 49% 47% 48% 1.139 1.027 996 976 954 922 920 804 744 680 697 687 711 691 701 636 632 586 511 531 517 502 465 474 409 329 326 330 348 336 279 298 296 244 251 256 275 241 198 135 128 75 70 82 27 46-94 -94-78 -89 55% 54% 53% 51% 48% 940 889 844 814 733 512 492 472 444 385 357 311 223 235 166 Net Cash (Net Debt) 47% 714 321 171 Gross Margin 46% 645 572 265 230 219 210 48% 47% 47% Net Revenue 518 469 241 293 171 188 Net Income -272 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2T17
jan-10 mar-10 mai-10 jul-10 set-10 nov-10 jan-11 mar-11 mai-11 jul-11 set-11 nov-11 jan-12 mar-12 mai-12 jul-12 set-12 nov-12 jan-13 mar-13 mai-13 jul-13 set-13 nov-13 jan-14 mar-14 mai-14 jul-14 set-14 nov-14 jan-15 mar-15 mai-15 jul-15 set-15 nov-15 jan-16 mar-16 mai-16 jul-16 set-16 nov-16 jan-17 mar-17 mai-17 jul-17 set-17 nov-17 jan-18 mar-18 Result to be recognized 5 800 700 600 500 400 300 200 100-752 Result to be Recognized (R$ MN) 607 486 380 362 308 252 274 193 175 134 123 87 54 51% 51% 52% 53% 49% 49% 44% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Revenue to be recognized Result to be recognized Margin Result to be recognized in downward trend / Margins more impacted by ready inventory sales and new launches. Number of Construction Sites* 40 35 30 25 24 25 28 37 31 25 20 15 14 10 6 5 0 *Desconsidera futuros lançamentos
Residential - 4.528 Landbank 6 85% Osasco - 104 104 Downtown - 125 West - 544 544 125 São Paulo Guarulhos - 708 287 708 East - 287 Poá - 60 60 of the landbank refers to residential projects. 76% 1.103 794 of the landbank refers to the city of São Paulo. 1.193 São Bernardo - South - 3.090 Commercial - 794-15% High - 1.251-24% Mid-High - 2.162-41% Medium - 708-13% Mid-low - 348-7% Low - 60-1% 64% Of landbank refers to the mid-high and high income (+15% Commercial).
Residential - 1002 Inventory 7 Jundiaí - 16 16 Estoque %EZTEC R$ 1.221MN North Zone - 33 Guarulhos - 464 92 Campos do Jordão - 21 21 67% of the inventory refers to delivered units. 13 20 372 West Zone - 22 Osasco - 117 1 21 25 41 São Paulo 99 51 Santo André - 10 South Zone - 382 10 192 39 75 76 East Zone - 100 SBC - 5 5 Lauches - 60 Construction - 342 28% of the inventory refers to residential segment in the city of São Paulo. Performed - 601 Santos - 51 Commercial - 218 51 66% R$-MN (Ex-EZ Towers) Of inventory to be delivered scheduled to 2017.
Sales and Cancellations 8 74% of the gross sales refers to delivered units. 15% of the gross sales refers to launches. Sales and Cancellations - LTM (R$ MN) 2.489 2.224 1.952 981 915 777 623 627 690 236 233 254 1.724 933 732 333 1.619 1.666 1.654 1.456 1.606 1.538 1.561 1.450 1.419 1.392 1.296 1.151 675 678 686 628 581 588 517 552 530 548 477 411 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Gross Sales 12M (R$ MN) Cancellations 12M (R$ MN) Gross Sales 12M (unit) Cancellations 12M (unit)
Deliveries vs. Inventory 9 Deliveries vs. inventory (R$ MN) 486 210 427 328 35 293 278 36 242 358 70 287 276 197 88 109 109 60 49 338 146 192 147 280 234 87 147 303 125 179 172 49 123 72 72 15 8 57 65 3T15 4T15 1T16 2T16 3T16 4T16 1T17 2T17 3T17 4T17 1T18 2T18 3T18 4T18 PSV EZTEC Deliveries Sold (R$ MN) PSV EZTEC Cancellations (R$ MN) PSV EZTEC Deliveries in Inventory (R$ MN) Largest amount of cancellations until 2017 due to deliveries of the harvests between 2011 and 2014; Largest amount of deliveries ends in 2017; Deliveries from 2018 on come from the harvests after 2015: better profile and prices suited to new reality.
Receivable Portfolio Fiduciary Title 10 New Settled 9.653 13.384 19.684 2.305 24.01111.567 6.663 6.664 12.610 9.809 19.110 5.612 292.251 288.520 305.899 318.343 318.342 321.142 334.641.. jan-17 fev-17 mar-17 abr-17 mai-17 jun-17 jul-17 11,0% Average interest rate (+IGP-DI) 86 months Total average term on Price Amortizarion 64% =Price Table amortization 184 months Total average term time on SAC Amortization
nov-13 dez-13 jan-14 fev-14 mar-14 abr-14 mai-14 jun-14 jul-14 ago-14 set-14 out-14 nov-14 dez-14 jan-15 fev-15 mar-15 abr-15 mai-15 jun-15 jul-15 ago-15 set-15 out-15 nov-15 dez-15 jan-16 fev-16 mar-16 abr-16 mai-16 jun-16 jul-16 ago-16 set-16 out-16 nov-16 dez-16 jan-17 fev-17 mar-17 abr-17 mai-17 jun-17 jul-17 ago-17 set-17 out-17 Cidade Maia Project - Guarulhos 11 2.000 1.800 1.600 1.400 1.200 1.000 800 600 400 200 0 Contracted Sales - units
Next Launches 12 Legittimo Vila Romana (Scipião) Location : São Paulo/SP Segment : Residential Standard : High-End EZTEC s PSV: R$49,5 MN Units: 54 % sold: 54% In Design Tamandaré (Tamandaré) Location : São Paulo/SP Segment : Residential Standard : Middle High-End EZTEC s PSV: R$67,8 MN Units : 114 % sold: 19% Verace Brooklin (Joaquim Guarani) Location : São Paulo/SP Segment : Residential Standard : High-End EZTEC s PSV: R$82 MN Units: 54 Clima São Francisco (Corifeu de Azevedo) Location: São Paulo/SP Segment: Residential Standard: Middle High-End EZTEC s PSV. : R$75 MN Units: 121
Potential Cash Generation 13 1.921 Cash: R$ 638MN Debt: R$ 345MN 288 3.125 658 1.205 293-180 -109 255 (a) Net Cash 2Q17 (d) Approved Dividends (c) Performed Receivables (d) Unperformed Receivables (e) Construction Obligation (f) Balance Equity Income Balance 1 (a+b+c-d+e+f) Inventory at Market Value + Tower B Total * Potential Result is not considered guidance
Potential Value for EZTEC 14 Value Added by Market (R$ MN) x Assets Potential Additional Result + R$15,2/share + R$21,48/share + R$38,18/share 2.508 Share Price: R$ 20,56 (10/08/17) +R$3,46/share 583 + R$0,33/share 54 570 + R$2,50/share 412 3.545 6.300 2.756 Book 2Q17=16,70/share Market Value Added BackLog Result Inventory EZ Towers Tower B Landbank Potential Value to be Added Potential Market Value * Potential Result is not considered guidance
Contact IR A. Emílio C. Fugazza CFO and IR Officer Augusto T. Yokoyama Controllership and IR manager Hugo G. Soares IR Analyst +55 11 5056 8313 ri@eztec.com.br www.eztec.com.br/ir