1q12 results conference call presentation
TRANSCRIPT
1Q12
Results
05/15/2012 > Investor Relations
Rossi Praças Golfe | São José do Rio Preto– SP
This material is a presentation of general background information about Rossi Residencial S.A. (“Rossi”) as of the date of this presentation. Information contained herein has been summarized and does not purport to be complete. This presentation shall not be considered an advice of investment by potential investors. This presentation is strictly confidential and may not be disclosed to any third person. There are no representations or warranties, express or implied, regarding the accuracy, fairness, or completeness of the information presented herein, which shall not support any decision of investment. This presentation contains statements and information that are forward-looking pursuant section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements and information are only predictions and cannot assure Rossi’s future performance. Investors have been cautioned that any such forward-looking statements and information are subject to many risks and uncertainties relating to the operations and business of Rossi and its subsidiaries. As a result of such risks and uncertainties, the actual results of Rossi and its subsidiaries may be materially different from any future result expressed or implied in the forward-looking statement or information contained herein. Although Rossi believes that the expectations and assumptions reflected in the forward-looking statements and information are reasonable and have been based on data currently available to its officers and directors, Rossi cannot guarantee future results or events. Rossi does not assume the commitment of update any of the forward-looking statement of information. Securities may not be offered or sold in the United States unlesss they are registered or exempt from registration under the Securities Act of 1933, as amended. Any offering of securities to be made in the United States will be made by means of an offering memorandum that may be obtained from the underwriters. Such offering memorandum will contain, or incorporate by reference, detailed information about Rossi and its subsidiaries, their business and financial results, as well as its financial statements. This material is for distribution only to person who (i) have professional experience in matters relating to investments falling within Article 19 (5) of the Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”), (ii) are persons falling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). This material is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this material relates is available only to relevant persons and will be engaged in only with relevant persons. This presentation does not constitute an offer, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
Disclaimer
1
Opening Remarks
Operating Performance
Cássio Audi
CFO and IRO Financial Performance
Index
2
Leonardo Diniz
CEO
Rodrigo Martins
Sales Officer
3 3
Operating
Performance
Rossi Mais Sintonia| Belo Horizonte – MG
4
R$ million
Launches
Breakdown by Segment (% Rossi) – 1Q12 Breakdown by Region (% Rossi) – 1Q12
29%
24%20%
15%
8%4%
Rio Grande do Sul
Rio de Janeiro
São Paulo (2 cities)
Ceará
Paraná
Pernambuco
Launches by State - 1Q12
68%
27%
5%
Conventional
Low Income
Commercial
Launches by Income Segment - 1T12
723
514
41
159
1Q11 1Q12
Launches 1Q12 - R$ million
Rossi Partners
764-12%
673
5
Contracted Sales
R$ million
Breakdown by Segment (% Rossi) – 1Q12 Breakdown by Region (% Rossi) – 1Q12
22%
12%
11%
9%9%
8%
6%
6%
4%
3%2%
1%
Sales by Income Segment - 1Q12
São Paulo (16 cities)São Paulo (RMSP)Rio de JaneiroParanáRio Grande do SulCearáDistrito FederalSergipeMinas GeraisAmazonasGoiásPernambucoBahiaEspírito SantoSanta CatarinaParáRio Grande do NorteMato Grosso do SulMato Grosso
50%
44%
6%
Sales by Income Segment - 1Q12
Low Income
Conventional
Commercial
768 639
256
236
1Q11 1Q12
Contracted Sales 1Q12 - R$ million
Rossi Partners
1.024
875
-15%
RMSP – São Paulo Metropolitan Region
6
Successful Launches in the quarter
Vila Flora Sumaré | Camélias Low Income Segment Sumaré - SP 200 units Jan/12
Rossi Nova Palhano Conventional Londrina - PR 244 units March/12
Rossi Praças Golfe Low Income Segment São José do Rio Preto - SP 240 units March/ 12
Rossi Vila Boa Vista Conventional Recife - PE 116 units March/12
SOS and Inventory
7
2,101 2,006 2,052 2,180 2,364 2,319 2,701 2,823 3,128 3,003
4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 4Q12
23% 25% 26% 27% 28% 25% 25% 25% 23%18%
Sales Speed (Sos)
Inventory
35%
13%9%
8%
7%
7%
4%
4%
4%
3%2%
1%São Paulo (18 cities)
Distrito Federal
Rio Grande do Sul
Amazonas
Minas Gerais
Rio de Janeiro
Sergipe
Rio Grande do Norte
Paraná
São Paulo (RMSP)
Goiás
Espírito Santo
Ceará
Bahia
Pernambuco
Alagoas
8 RMSP – São Paulo Metropolitan Region
76% acquired through swap
Regional diversification
Land Bank
Land bank diversified by region and
product
Total PSV of R$ 28 billion (R$ 21 billion
Rossi’s share)
Income Segment diversification
36%
19%
20%
13%
4%
8%
Low income segment
From R$ 200 K to R$ 350 K
From R$ 350 K to R$ 500 K
Above R$ 500 K
Lots
Commercial
76%
24%
Swap
Cash
9 9 9
Financial
Performance
Rossi Nova Palhano | Londrina– PR
G&A Expenses Reduction Plan
G&A Expenses
In 3Q11, Rossi announced the program to reduce
G&A expenses;
The target is to maintain the same absolute
amount in 2011 by 2012;
In 1Q12, G&A expenses decrease in R$ 13 MM
compared with 4Q11;
Expenses will remain in those levels through
2012;
53
63
76
69
56
1Q11 2Q11 3Q11 4Q11 1Q12
SG&A Expenses
Decrease of R$ 13 MM
78
44
1Q11 1Q12
-44%
215
228
1Q11 1Q12
6%
Financial Highlights
11
Net Revenues (R$ million) Gross Income (R$ million) and Gross Margin (%)
EBITDA (R$ million) and EBITDA Margin (%) Net Income (R$ million) and Net Margin (%)
12%
655
789
1Q11 1Q12
20%
29% 33%
126
140
1Q11 1Q12
11%
19%
18%
12%
6%
R$ million 1Q12 4Q11 Chg (%)
Short Term 916 909 1%
Construction Finance 701 673 4%
Working Capital 103 117 -12%
Debentures 112 119 -6%
Long Term 2,525 2,334 8%
Construction Finance 1,636 1,447 13%
Working Capital 539 537 0%
Debentures 350 350 0%
Total Debt 3,441 3,243 6%
Cash and Cash Equivalents 1,298 1,239 5%
Net Debt 2,143 2,004 7%
Net Debto/ Shareholder´s Equity 76.0% 72.0% 4.0 p.p.
Debt Breakdown Debt Profile
12
Indebtness
Debt
¹ Excludes CEF’s debentures that were classified as Real Estate Credit.
Strong cash position of R$ 1.3 billion (46% of Shareholders' Equity);
68% of debt is construction financing;
73% with long term maturity;
Long Term
Short Term
73%
27%
Longo Prazo
Curto Prazo
68%
19%
13%
Construction Financing
Debentures
Working Capital
13
Cash Burn
• Cash burn of R$ 104 million in 1Q12;
• Downward trend in the past quarters
Cash burn excluding the nonrecurring debts and the stock buyback program;
178
213195
268
94
198
93
13
104
1T10 2T10 3T10 4T10 1T11 2T11 3T11 4T11 1T12
2010: R$ 854 MM
2011 : R$ 398 MM
-53%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
14
Equipe de RI
Thank You!
IR Team Phone: +55 (11) 4058-2685 [email protected] www.rossiresidencial.com.br/ir
15 15 15
Q&A