4q09 results presentation

1

Results 4Q09

Villa Flora – Low income Segment

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DisclaimerThis 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 ofinvestment by potential investors. This presentation is strictly confidential and may not be disclosed to any third person. There are norepresentations or warranties, express or implied, regarding the accuracy, fairness, or completeness of the information presented herein, which shallnot 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, andSection 21E of the Securities and Exchange Act of 1934. Such forward-looking statements and information are only predictions and cannot assureRossi’s future performance. Investors have been cautioned that any such forward-looking statements and information are subject to many risks anduncertainties relating to the operations and business of Rossi and its subsidiaries. As a result of such risks and uncertainties, the actual results ofRossi and its subsidiaries may be materially different from any future result expressed or implied in the forward-looking statement or informationcontained herein.

Although Rossi believes that the expectations and assumptions reflected in the forward-looking statements and information are reasonable and havebeen based on data currently available to its officers and directors, Rossi cannot guarantee future results or events. Rossi does not assume thecommitment 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 obtainedfrom 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) ofthe Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”), (ii) are personsfalling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Financial Promotion Order, (iii) areoutside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated orcaused to be communicated (all such persons together being referred to as “relevant persons”). This material is directed only at relevant personsand must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this material relatesis 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 thispresentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.

Results 4Q09

33

Heitor Cantergiani

CEO

Recent Events

Leonardo Diniz

Sales Officer

Operating Performance

Cássio Audi

CFO and IRO

Financial Performance

Agenda

44

Operating Highlights

Record launches of R$ 1.0 bi (R$ 763 million – Rossi’s share) in 4Q09 divided into 24 projects with a

total of 8,314 units.

Contracted Sales of R$ 828 million (R$ 621 million – Rossi’s share), of which 57% were inventory

sales.

SOS of 23.0% (vs. 21.0% in 3Q09) growth for the 4th consecutive quarter

Low Income Segment

6.899 units launched in the quarter (27.7 thousand units annualized)

Financial Performance Net income of R$ 77 million;

Gross Margin (²) of 33.6%

EBITDA Margin reaches 20.6%

Net Margin of 16.1% in 4Q09

ROE (³) of 22.6% (annualized)

(¹) Fonte: Bloomberg 10/11/2009 – média últimos 30 dias

(²) Excluding financial effects

(³) Net Income/ Equity shareholder’s average in the period

Main Highlights (4Q09)

55

Operating Highlights

Launched PSV of R$ 2.8 billion (R$ 2.2 billion Rossi’s share) in 2009, divided into 68 projects with a

total of 16,456 units.

Contracted Sales of R$ 2.3 billion (R$ 1.8 billion Rossi’s share), of which 46% were inventory sales.

132 construction sites and 34,762 units under construction

Low Income Segment

13,086 units launched, with 50 projects

Corresponds to 47% of the total PSV launched (Rossi’s share)

Increase of 92% in the PSV launched (Rossi’s share), R$ 927 millions vs R$ 484 millions in the last

year

Financial Performance Net income totaled R$ 218 million

Adjusted Gross Margin (¹) of 34,2% (6.0 p.p. increase over 2008)

EBITDA Margin of 22.0% (7.3 p.p. increase over 2008)

Net Margin of 13.9% (4.3 p.p. increase over 2008)

ROE (²) of 22.6% (annualized)

(¹) Excluding financial effects

(²) Net Income/ Equity shareholder’s average in the period

Main Highlights (2009)

66

Rossi’s Regional

Offices

Regional Paulistana office

Creation of Regional Paulistana, continuing with Rossi’s strategy

of expanding its national presence and strengthening its presence

in the city of São Paulo, focusing launches of middle high

residential developments.

Regional Oeste

We structured the Regional Oeste office, whose main challenges

will be to consolidate and expand Rossi’s operations in the western

region of São Paulo state and to explore the real estate market in

the north of Paraná state.

Recent agenda

Rossi has 9 regional offices and 30 cells currently in operation, as part of its growth plan and geographical expansion strategy;

7

Partnerships / Joint Venture

Expansion to new regions through local partners;

Adequacy to each region’s particularity;

Joint venture with Construtora Capital to operate in north Brazil, initially in Manaus and Belém. The

new company expects to launch R$ 1.2 billion in new developments in the next 2 years (2010/2011).

Recent agenda

88

New Organizational Structure – Low income Segment

Standardized Projects

Reduced operating cycle and costs, in large scale;

Marketing and sales stands standardized;

Low income strategy with use of stores

Appropriate products for the economic segment: Rossi Ideal, Villa Flora and Rossi Praças Residenciais

Villa Flora

Units from 46 to 115 m²

Prices starting at R$ 78,000

100% financed

Installments starting at R$ 310*

Planned neighborhood

NGO working to foster and preserve

citizenship and community spirit

Praças Residenciais



100% financed


Community squares

Meticulous installation and

landscaping

Differentiated architectural project

Concern with sustainability

Rossi Ideal



100% financed


Standardized product line

Meticulous installation and

landscaping

Leisure options appropriate for low

condominium cost.

Recent agenda

9

Construction Technology

Improved agility in raising the building structure, and finishing, thus enabling gains in scale,

optimization of efforts and costs reduction;

We created the Prefabricated Building System, with the factory in Canoas in the state of Rio Grande

do Sul.

Projeto Escola: Workforce training

Concrete Board Walls Execution Capacity


Recent agenda

10

Recent agenda

Rossi Vendas / Lojas Rossi Ideal

Rossi Vendas sold R$ 228 million in 4Q09, corresponding to 29% of total contracted sales.

Currently operating in São Paulo, Rio de Janeiro, Porto Alegre, Campinas, Vitória and Fortaleza, Rossi Vendas will continue to expand its operations in 2010.

Rossi Vendas had a visitation from 9,000 people in the quarter, an average of 100 visits per day


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Launches and Sales

Villa Flora – Low Income Segment

12

520

1,636

2,045 2,156

95

507

678602

1H09 2H09 2008 2009

Partners

Rossi

Nossos Resultados em Números

Launches Breakdown by Income Segment and State – Total PSV 2009

615

2,143

2,723 2.758

+248%

Launched PSV (R$ million)

12

Launches

Low Income

> R$ 500,000

R$ 200,000 to R$ 350,000

Commercial

R$ 350,000 to R$ 500,00048%

31%

11%

6%4%

23%

16%

14%

13%

8%

8%

7%

4%3%

1%Rio Grande do Sul

São Paulo (demais cidades)

São Paulo (RMSP)

Rio de Janeiro

Amazonas

Paraná

Distrito Federal

Minas Gerais

Goiás

Espírito Santo

Bahia

Ceará

13

687

1,138

1,6601,825

161

354

516

515

1H09 2H09 2008 2009

Partners

Rossi

39%

19%

17%

12%

10%2%

Segmento Econômico

De R$ 200 mil a R$ 350 mil

Acima de R$ 500 mil

De R$ 350 mil a R$ 500,0 mil

Comercial

Até R$ 200 mil

23%

19%

15%

11%

10%

7%

4%3%

3%3%

1%São Paulo (RMSP)

São Paulo (demais cidades)

Rio Grande do Sul

Rio de Janeiro

Paraná

Minas Gerais

Amazonas

Espírito Santo

Bahia

Goiás

Pernambuco

Distrito Federal

Ceará

Contracted sales

13

Contracted sales (R$ million)

848

1,492

2,1762,340

+76%

Sales Breakdown by Income Segment and State – Total PSV 2009

Low Income

> R$ 500,000

R$ 200,000 to R$ 350,000

Commercial

R$ 350,000 to R$ 500,000

Up to 200,000

14

Real Estate Market: Industry and Company OverviewSuccessful Launches in 4Q09

Speciale

Gama - DF

140 unidades (60% vendido)

VGV % Rossi: R$ 19 milhõesLançamento: Nov/09

Rossi Ideal Vitória Régia

Campinas - SP

200 units (100% sold )

PSV % Rossi: R$ 10 millionsLaunched : Nov/09

Totalité

São José do Rio Preto - SP


VGV % Rossi: R$ 22,5 milhões

Lançamento: Out/09

TotalitéSão José do Rio Preto - SP


VGV % Rossi: R$ 22,5 milhões

Lançamento: Out/09

TotalitéSão José do Rio Preto - SP


PSV % Rossi: R$ 22,5 millions

Launched : Oct/09

Rossi Ideal Águas Claras e Vitória Régia

Campinas - SP


VGV % Rossi: R$ 19 milhões

Lançamento: Dez/09

Rossi Ideal Águas Claras

Campinas - SP

200 units (99% Sold)

PSV % Rossi: R$ 10 millions

Launched : Dec/09

Rossi Ideal Cores de Mogi

Mogi das Cruzes - SP

Lançamento Jan/10 – 80% vendido



Lançamento Jan/10 – 80% vendido



Launched: Jan/10 – 80% sold

Rossi Jardins Praças Residenciais

Belo horizonte - MG



Lançamento: Dez/09


Belo horizonte - MG



Lançamento: Dez/09


Belo Horizonte - MG



Launchedç : Dec/09

Gragoatá Bay Residênciais

Niterói - RJ

318 unidades 86% vendido)


Lançamento: Nov/09


Niterói - RJ

318 unidades 86% vendido)


Lançamento: Nov/09


Niterói - RJ

318 units


Launched: Nov/09

(86% sold)

15

69120 163 265

214

284

354

356

1Q09 2Q09 3Q09 4Q09

Launch Sales Inventory Sales

15%

20%21%

23%

1T09 2T09 3T09 4T09

15


SOS constant performance - growth for the 4th consecutive quarter

SOS and Inventory

SOS Performance (%) Inventory sales (R$ million)

283

404

517

621

16

Land BankEco.Seg.

Up toR$ 200,000

R$ 200,000 toR$ 350,000

R$ 350,000 toR$ 500,000

Above R$ 500,000

Commercial Lots Total %

Amazonas 221 59 214 66 0 72 0 632 3%

Bahia 94 0 879 0 479 0 0 1,452 6%

Ceará 371 0 0 104 0 0 0 476 2%

Federal District 944 25 67 0 0 589 0 1,625 7%

Espírito Santo 662 0 0 0 0 105 0 767 3%

Goiás 1,310 0 0 0 0 0 0 1,310 6%

Mato Grosso do Sul 90 0 0 0 0 0 0 90 0%

Minas Gerais 1,821 0 139 0 0 0 0 1,959 9%

Paraná 0 0 70 0 0 0 0 70 0%

Pernambuco 92 0 0 0 0 0 0 92 0%

Rio de Janeiro 1,073 0 283 983 88 0 0 2,427 11%

Rio Grande do Norte 155 0 0 0 0 82 0 237 1%

Rio Grande do Sul 1,776 0 794 0 479 0 0 3,049 13%

São Paulo (other cities)

1,404 114 2,388 871 374 91 641 5,884 26%

São Paulo (RMSP)

391 0 192 1,280 782 30 140 2,814 12%

Total 10,403 198 5,026 3,304 2,203 969 781 22,883 100%

Distribution 45% 1% 22% 14% 10% 4% 3% 100%

Expertise Rossi e Diferenciais Competitivos

Landbank diversified by region and product

45% of Landbank focused on Economic Segment

Landbank 4Q09 (in R$ million) – PSV by State and Income Segment

16

Landbank

SFH (Brazilian financial system) 83%

17

Brokers by city

Market Segments

Rossi Vendas São Paulo, Porto Alegre, Rio de Janeiro, Campinas, Vitória and Fortaleza.

Sales on operation region - 2009

Targets

Regional offices openning expectations:

Goiânia e Brasília – April, 2010

Curitiba, Belo Horizonte and Manaus – June, 2010

Rossi Sales

29%

71%

ROSSI VENDAS

Outras

127

85

70

50

3618

Rio de Janeiro

São Paulo

Porto Alegre

Campinas

Vitória

Fortaleza

17

Other

18*New methodology comparable to its peers

Operating and Financial Targets

18

2009 Financial Targets - Reached

Target = R$ 2 billion

R$ 2.2 billion

Launches Contracted Sales

R$ 1.8 billion

Target = R$ 1.6 billion

Target = 30 – 32%30,8%

Gross Margin

Target = 20 – 22%

22.0%

EBITDA Margin*

2009 Target Results

2009 Operating Targets - Surpassed

191919

Financial Highlights

202020

Destaques Resultados

(1) Excluding financial factors

(2) Net income / Shareholders’ equity in the period (excluding follow on)

Net Income84% net income growth (vs. 2008) totaling R$ 218 million.

MarginAdjusted Gross Margin (1) of 34,2% (6.0 p.p. increase over 2008)

Adjusted EBITDA Margin of 22.0% (7.3 p.p. increase over 2008)

Net Margin of 13.9% (4,3 p.p. increase over 2008)

ROE (²) of 22.6% (annualized) (Increase of 17.1 p.p. over 2008)

Selling and Administrative ExpensesContinued efficient management of selling and administrative expenses

Stable Cash Burn and lowest among industry peers

2009 and 4Q09 Highlights

4Q09

Net IncomeNet Income of R$ 77 million in 4Q09

MarginGross Margin (¹) of 33.6%EBITDA Margin of 20.6% Net Margin of 16.1%

2009

21

74

154

307

514

4Q08 4Q09 2008 2009

319

476

1,233

1,572

4Q08 4Q09 2008 2009

21


Net Revenue (R$ million)Adjusted Gross Income (R$ million) and Adjusted Gross Margin

* Excluding financial effects

49%

27%

107%

68%25.4%

33.6%

28.3%

34.2%


Costs 4Q09 4Q08 2009 2008

Works+Sites 303 91.5% 218 94.4% 989 91.0% 778 95.6%

Financial Charges 28 8.5% 13 5.6% 98 9.0% 36 4.4%

Gross Profit 145 30.4% 88 27.6% 485 30.8% 419 34.0%

(+) Financial Charges 28 13 98 36

(-) Monetary variation and interest 19 27 68 148

Adjusted Gross Profit* 154 74 514 307

Adjusted Gross Margin* 33.6% 25.4% 34.2% 28.3%

Net Revenue 4Q09 4Q08 2009 2008

Property sales and services 472 99.2% 301 94.4% 1,552 98.7% 1.125 91.2%

Monetary variation and interest 19 3.8% 27 8.5% 69 4.4% 148 12.0%

(-) Sales taxes (15) -3.2% (9) -2.9% (49) -3.1% (40) -3.2%

Total 476 319 1,572 1,233

22

27

98

181

345

4Q08 4Q09 2008 2009

EBITDA (New methodology) 4Q09 4Q08 Var. 2009 2008 Var.

Net Income 77 16 369.2% 218 119 83.8%

(+/-) Financial Expenses (Ver.), Net (30) (10) 193.4% (31) 10 -417.8%

(+) Provision for I. Tax and S. Contrib. 18 4 327.7% 37 6 482.6%

(+) Depreciation and amortization 5 4 35.9% 22 10 115.5%

(+) Interest 28 13 112.0% 98 36 173.1%

EBITDA 98 27 257.1% 345 181 90.7%

(+) Stock Options 0.2 - 0,6 - -

Adjusted EBITDA 98 27 258.1% 345 181 91.1%

Adjusted EBITDA Margin 20.6% 8.6% 12.0p.p 22.0% 14.7% 7.3p.p

16

77

119

218

4T08 4T09 2008 2009

22


Net Income (R$ million) and Net Margin (%)EBITDA (R$ million) and EBITDA Margin (%)

258%

91%

8.6%

20.6%

14.7%

22.0%

369%

84%

9.6%

13.9%

5.1%

16.5%

4Q08 4Q09


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Operating expenses 4Q09 4Q08 Var. 2009 2008 Var.

Administrative 28 28 -0.2% 100 107 -6.8%

Selling 36 40 -8.6% 113 140 -19.6%

Administrative/Net Revenue 6.0% 8.9% -3.0 p.p. 6.3% 8.6% -2.3 p.p.

Selling/Net Revenue 7.6% 12.5% -4.8 p.p. 7.2% 11.4% -4.2 p.p.

Administrative/Contracted Sales(% Rossi)

4.6% 10.3% -5.7 p.p. 5.5% 6.4% -0.9 p.p.

Selling/Contracted Sales (%Rossi) 5.9% 14.4% -8.6 p.p. 6.2% 8.4% -2.2 p.p.

Administrative/Launches (% Rossi) 3.7% 5.0% -1.3 p.p. 4.6% 5.2% -0.6 p.p.

Selling/Launches (%Rossi) 4.8% 6.9% -2.2 p.p. 5.2% 6.9% -1.6 p.p.

2323


Selling Expenses (R$ million) Administrative Expenses (R$ million)

More efficient at selling and administrative expenses

-20%

-7%

Selling and Administrative expenses

24

Debt Interest Rate Dec/09 Sep/09 Var.

Debt – Short Term 515.8 388.2 33%

Loans – working capital CDI + 1.5 – 2.0% 69.4 57.1 21%

Construction financing TR + 9-11% 413.4 311.9 33%

Debentures - 33.1 19.2 72%

Debt – Long Term 694.8 725.1 -4%

Loans – working capital CDI + 1.5 – 2.0% 167.1 186.1 -10%

Construction financing TR + 9-11% 213.2 213.0 0%

Debentures 106.6% of CDI 314.6 326.0 -4%

Total Debt 1,210.6 1,113.3 9%

Cash position

Short term investmentsCDB pós fixado em

CDI969.7 174.5 456%

Long term investmentsCDB pós fixado em

CDI1.1 1.1 0%

Total cash position 970.9 175.5 453%

Net Debt 239.7 937.9 -74%

Net Debt/Shareholders’ Equity 10,5% 67.9%-

57.4p.p.

Net Debt (- SFH)/ Shareholders’ Equity -16,9% 29.9% n.m.

2424

Nossos Resultados em NúmerosDebt

Total Debt Breakdown

Cash Burn (in R$ million)

20%

52%

29%

Working capital

Construction financing

Debentures

138

108 117

187

1Q09 2Q09 3Q09 4Q09

252525

NossosResultados em NúmerosRSID3 - 2009

Market Value RSID3

Number of shares before offering 192,186,388

Number of new shares issued 74,250,000

Total shares after offering 266,436,388

Shire price 03/29/2009 12.80

Market Value R$ 3.410.385.766

50

100

150

200

250

300

350

400

450

3/29/0

9

4/29/0

9

5/29/0

9

6/29/0

9

7/29/0

9

8/29/0

9

9/29/0

9

10/29/

09

11/29/

09

12/29/

09

1/29/1

0

2/28/1

0

3/29/1

0

RSID3 IBOV IMOB

26

Exclusive Primary Offering

Issue of 74,250,000 shares

Total shares after offering – 266,436,388

Total amount raised – R$ 928 million (gross)

Recent agenda

Restricted Stock Option Plan

Purpose of aligning interests and retaining key executives in the long term, linking a significant share of the officers’ compensation to the generation of value for the Company in the long term.

Approved at the Extraordinary Shareholders' Meeting on December 21, 2009

The Plan will be limited to a maximum number of Options that will result in a dilution of the Company’s capital stock on the approval date of each Option of up to three percent (3%).

2727

Primary Offering: Raise of R$928 million in October, 2009.

Free-float increase from 47.8% to 62.7%.

Shareholders distribution after the offering

Shareholders distribution

Latam1%

USA16%

Europe27%

Ásia3%

Others*2%

*

*

*

Brazil38% Controlling13% Local Investors

*

*

*

282828

Cássio Elias AudiCFO and Investor Relations Officer

Carolina BurgInvestor Relations [email protected]. (55 11) 3759-7516

IR Team

2929

Q&A