ccdi presentation itau bba 20070528 eng only
TRANSCRIPT
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CAPITAL STRUCTURE POST-DEAL
CAMARGO CORREA65.5%
FREE FLOAT31.9%
ITAUTEC2.7%
IPO COMPLETION: JAN 31, 2007
VOLUME (PRIMARY, NET) : R$ 454 MILLION
92% PRIMARY (SELLING SHAREHOLDER: ITAUTEC)
MARKET CAP (MAY 15, 2005): R$ 1.3 Bn
FREE FLOAT: R$ 416 MM
BOVESPA’S NOVO MERCADO
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THE SEVEN VALUE DRIVERSSTRONG-GROUP SPONSORSHIP
NETWORKING AND SYNERGIESNEGOTIATION POWERENHANCED ACCESS TO CAPITAL AT BEST-OF-INDUSTRY TERMS
SECTOR ATTRACTIVENESSTHE BRAZILIAN REAL ESTATE VIRTUOUS CYCLE
DIFFERENTIATED BUSINESS MODELPURE REAL ESTATE PLAYERCAPITAL USE OPTIMIZATION
STRONG, WELL-RECOGNIZED BRAND NAME#3 REASON FOR BUYING
CONSOLIDATED LAND BANK WITH UNIQUE AREASLAUNCHINGS PLANNED FOR 2007, 2008, 2009 AND BEYOND
COMFORTABLE CASH POSITIONPROJECT-RELATED DEBT WITH SPECIFIC GUARANTEES
PROVEN TRACK RECORD OF MANAGEMENT TEAMYOUNG YET BATTLE-TESTED TEAM WITH OVER 400 PROJECTS ON FOLD
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CAMARGO CORRÊA GROUP
4.4%4.4%
1. 6%1. 6%
14.9%14.9%
38.5%38.5%
99.3%99.3%
100.0%100.0%
17.9%17.9%
58.9%58.9%
5.8%5.8%
Main BusinessesMain Businesses
Steel
Energy Generation & Distribuition
Highway Concession
Shoes & Sportwear
Denim (Jeans)
Financial Institutional Holding
Aluminum
Cement
Civil Works
Private-Held Companies
Premier Listed Companies
65.5%65.5% Real Estate Development
67 YEARS OF OPERATIONS
LEADING COMPANIES
FINANCIAL SOUNDNESS
CORPORATE GOVERNANCE
NATIONAL AND INTERNATIONAL PRESENCE
RESULTS-ORIENTED CULTURE
CAPITAL DISCIPLINE
67 YEARS OF OPERATIONS
LEADING COMPANIES
FINANCIAL SOUNDNESS
CORPORATE GOVERNANCE
NATIONAL AND INTERNATIONAL PRESENCE
RESULTS-ORIENTED CULTURE
CAPITAL DISCIPLINE
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SECTOR ATTRACTIVENESSNO CLEAR-CUT MARKET LEADER IN BRAZIL
FRAGMENTED COMPETITION, ESPECIALLY OUTSIDE OF SP AND RJ
DECLINING INTEREST RATES FUEL THE DEMAND FOR CREDIT
INCREASED SAVINGS ACCOUNT BALANCE (LEGAL REQUIREMENTS)HIGHER DISPOSABLE INCOME OF PART OF POPULATION
INTERESTING TO FINANCIERS/BANKSATTRACTIVE SPREADS VIS-À-VIS CROSS-SELL OPPORTUNITIES LONG TERM-RELATIONSHIP WITH PRIME CUSTOMERS
HUGE PENT-UP DEMANDHIGHER NUMBER OF UNITS ON LOWER SOCIAL CLASSESMIDDLE AND UPPER CLASSES: NEW HOMES, BETTER LOCATION, LIVING UPGRADES, RENT SWAP
GOVERNMENT SUPPORTKEY PART OF BRAZIL’S PAC (ECONOMIC ACCELERATION PROGRAM)
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SECTOR ATTRACTIVENESSCONSOLIDATION POTENTIAL
ONE-PROJECT DEVELOPERSLOCAL AND REGIONAL PLAYERSPARTNERSHIPS AND JOINT-VENTURES
OVERSUPPLY RISKS IN MAIN MARKETSSPECIFICALLY TO CERTAIN REGIONS/NEIGHBORHOODS, TYPES OF PRODUCTS
CONSTRUCTION MATERIALSMAIN PRIME-MATTER SUPPLIERS STILL OPERATING UNDER FULL CAPACITYFINISHING MATERIALS MATERIALLY DIFFER ACCORDING TO PRICE OF PRODUCTIN CASE OF SHORTAGE OF A SPECIFIC ITEM, IMPORTS CAN FILL THE VOID
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DIFFERENTIATED BUSINESS MODEL
PURE REAL ESTATE
PLAYER
PURE REAL ESTATE
PLAYER
OPTIMUMCAPITAL
UTILIZATION
OPTIMUMCAPITAL
UTILIZATION
ADJUSTEDRISK -
RETURNRATIO
ADJUSTEDRISK -
RETURNRATIO
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PURE REAL ESTATE PLAYERMARGINS FROM CONSTRUCTION NOT CONSOLIDATED IN THE COMPANY´S BALANCE SHEET
MAXIMUM GUARANTEED PRICE - NO COST OVERRUN RISKSNO ENGINEERING RISKSFLEXIBILITY TO CHOOSE WHICH CONTRACTOR WILL UNDERTAKE EACH PROJECT
NO INTERNAL BROKERAGE STRUCTURENO SIGNIFICANT INVENTORY OF DELIVERED AND UNDER CONSTRUCTION UNITSAGILITY, FLEXIBILITY AND NETWORKING
COMMERCIAL PROPERTIES STRATEGYCOMMERCIAL PROPERTIES WILL BE SOLD AFTER BEING LEASED (IN ORDER TO INCREASE RETURNS)
ACQUISITION OF LAND THROUGH SWAPS
LEVERAGING PER PROJECT
CONSTRUCTION FINANCING/SECURITIZATION OF RECEIVABLES
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ADJUSTED RISK – RETURN RATIO
Net Revenues $100
Construction Works & Others $ 46
Land $ 15
Gross Income $ 32
CCDI Typical Development
Net Revenues $88
Construction Works & Others $ 46
Gross Income $ 42
16 percentage points of margin difference
Other Real Estate Players
Construction Margin $ 4
VGV $ 103 VGV $ 103
Broker Fees $ 3 Broker Fees $ 0
Financing Cost $ 3 Financing Cost $ 0
Construction Margin $ 0
Land $ 0
Land $ 0 Land $ 15
Gross Margin 32% Gross Margin 48%
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OUR BRAND, OUR ASSETFIRST PUBLIC COMPANY BEARING THE GROUP’S NAME
NATION-WIDE RECALL
CONSTRUCTION BACKGROUNG IS A VALUE-ADDED
FLAGSHIP CONSTRUCTION TRACK RECORD GENERATES IMAGE OF QUALITY AND CAPACITY TO EXECUTE COMPLEX PROJECTS
EXTENSIVE RESEARCH AND HISTORY CORROBORATES VALUE OF THE BRAND
#3 REASON FOR BUYING A CCDI UNIT, AFTER LOCATION AND BLUEPRINTHIGH SPEED OF SALES BEFORE CONSTRUCTION STARTS (~70%)
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CONSOLIDATED LAND BANKR$ 5.5 BILLION IN POTENTIAL VGV (100% CCDI)
2.4 MILLION SQUARE METERS FOR FUTURE DEVELOPMENTS
~90% ACQUIRED VIA SWAPS, ESPECIALLY FINANCIAL
ON-GOING NEGOTIATIONS FOR R$ 4.0 BILLION (POTENTIAL VGV, 100% CCDI) – ESTIMATED HIT RATE: 50%
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CONSOLIDATED LAND BANKDURATION OF LAND BANK:
3+ YEARS WITHOUT NEW ACQUISITIONS
NEW ACQUISITIONS STRATEGYTO COVER FOR LAUNCHINGSMAINTAIN OR EXPAND SWAP RATIOSEGMENT AND GEOGRAPHICAL DIVERSIFICATION GIVEN CERTAIN CONDITIONS
7 NEW PLOTS ACQUIRED
804.5 THOUSAND SQ.M.
R$ 367 MM IN POTENTIAL VGV
SEGMENT DIVERSIFICATION
AVERAGE 85% OF ACQUISITION PRICE
PAID THROUGH SWAPS
NEW CITIES
SANTOS
GUARUJÁ
7 NEW PLOTS ACQUIRED
804.5 THOUSAND SQ.M.
R$ 367 MM IN POTENTIAL VGV
SEGMENT DIVERSIFICATION
AVERAGE 85% OF ACQUISITION PRICE
PAID THROUGH SWAPS
NEW CITIES
SANTOS
GUARUJÁ
LANDBANK 4Q06 LAUNCHINGS ACQUISITIONS LANDBANK 1Q07
R$
5.1
Bn
R$
5.5
BnR$ 71 MM
R$ 367 MM
(R$ 71 MM)
R$ 367 MM
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CONSOLIDATED LAND BANKGEOGRAPHICAL LANDBANK CONCENTRATION
RESIDENTIAL PROPERTIESSÃO PAULO METROPOLITAN AREA (RMSP)
3.6
0.9
0.20.40.20.2
RMSP SP - Inner Citiesand Shoreline
Rio de Janeiro
Residential Commercial Lots
LANDBANK – POTENTIAL VGVType of Development - (R$ billion) – 100% CCDI
0,69
1,18
0,970,86
0,70
100 to 200 200 to 350 350 to 500 500 to 1000 over 1000
LANDBANK – POTENTIAL VGVResidential in R$ 000 per unit - (R$ billion) – 100% CCDI
16% 27% 22% 20% 16%
RESIDENTIAL LANDBANK DIVERSIFICATION
GOOD BALANCE AMONG SEGMENTS43% OF POTENTIAL VGV WITHIN THE SFH’S R$ 350,000 PER UNIT THRESHOLD
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COMFORTABLE CASH POSITION
(15.3)ACCOUNTS PAYABLE (LAND) – LONG
(9.2)DEBT - LONG
337.7NET CASH POSITION
19.3CASH POSITION PRE – IPO
478.5IPO PROCEEDINGS, NET
(13.2)DEBT – SHORT
362.2CASH POSITION POST – IPO
(87.0)CASH INFLOW (OUTFLOW) – 1Q07
(35.4)ACCOUNTS PAYABLE (LAND) – SHORT
R$ million
IPO PROCEEDINGS TO BE USED ON:
NEW LAND ACQUISITION (20%) WORKING CAPITAL (80%)
FORECASTED CASH POSITION:
CASH FLOW PLAN WILL FINANCE GROWTHPREMISSES: SWAP AND LEVERAGING
2007 2008 2009 2010
R$
mill
ion
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OPERATIONAL
300.0
71.3
453.3
2006 1 HALF 2007
ACTUAL ESTIMATE
82%
VGV (R$ million)
33.0
71.4
1Q06 1Q07
VGV LAUNCHED (R$ million)
+116%
CONDOMÍNIO CASSISCCDI’S SECOND LAUNCHING IN PENÍNSULA DE SÃO LOURENÇOBERTIOGA (SP)TOTAL USABLE AREA (m2): 16,527UNITS: 71VGV: R$ 71.0 million100% CCDI
ACTUAL LAUNCHING 2Q07VIVEIRO MARÍLIA VOGTOSASCO (RMSP)VGV: R$ 29 MM
EXPECTED LAUNCHINGSÁGUAS DE MARÇO (VGV: R$ 58 MM)FOTOGRAFIA (VGV: R$ 43 MM)EMPRESARIAL JARDIM SUL (VGV: R$ 54 MM)
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OPERATIONAL
92
164
1Q06 1Q07
UNITS SOLD
+78%
29.1
87.3
1Q06 1Q07
CONTRACTED SALES(R$ million)
+200%
171.3
87.3
2006 1Q07
CONTRACTED SALES(R$ million)
51%
3,260.53,295.7
2006 1Q07
AVERAGE SALES PRICE(R$/m2)
+1%
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OPERATIONAL
500 500 407 407
71 164
2006 LAUNCHINGS UNITS SOLD 1Q07
UNITS FOR SALE
114 148
370
241
1816
2006 1T07
Delivered Units Units under Construction Pre-Construction Units
UNITS FOR SALE
VSO (UNITS SOLD/UNITS FOR SALE): 35.3%*
* CALCULATED AS UNITS SOLD/UNITS AVAILABLE FOR SALE
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FINANCIAL
7.8
24.4
46.1
1Q05 1Q06 1Q07
CAGR: +144%
GROSS REVENUES (R$ million)
7.4
23.2
44.3
1Q05 1Q06 1Q07
CAGR: +145%
NET REVENUES (R$ million)
1.4
4.9
9.9
1Q05 1Q06 1Q07
GROSS INCOME (R$ million)
CAGR: +162%19.5
21.2 22.4
1Q05 1Q06 1Q07
GROSS MARGIN (%)+2.9 p.p.
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FINANCIAL
173.6
244.9
1Q06 1Q07
REVENUES TO BE RECOGNIZED(R$ million)
+41%.42.5
60.1
1Q06 1Q07
RESULTS TO BE RECOGNIZED(R$ million)
+41%.
24.5 24.5
1Q06 1Q07
MARGINS TO BE RECOGNIZED (%)
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FINANCIAL
(1.1)
2.2
(12.9)
1Q05 1Q06 1Q07
NET INCOME (R$ million)
-0.6
2.8
2.1
1Q05 1Q06 1Q07
EBITDA (R$ million)
RECOGNITION OF R$ 26.2 MM IN NON-RECURRING, IPO-RELATED EXPENSES IN 1Q07
SG&A GROWTH DUE TO THE FORECASTED INCREASED OPERATIONS FOR 2007 AND 2008
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LOOKING AHEADESTIMATED LAUNCHINGS (IN VGV)
1.41.4
1.7
1.0
2007 2008 2009 2010 and later
LANDBANK – POTENTIAL VGVLaunchings - (R$ billion) – 100% CCDI – Accumulated
Potential acquisitions
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CONSERVATIVE APPROACHALL FORECASTED VGV (2007/2008) BASED ON:
“IN-HOUSE” LAND BANKACTUAL SALES PRICENO MONETARY READJUSTMENTS FOR UNITS AND/OR INSTALLMENTS
ALL FORECASTED LAUNCHINGS ALREADY IN PLANNING:PERMITS AND APPROVALSPRODUCT DESIGNING AND RESEARCHING
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This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of CCDI and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.
Although CCDI believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to CCDI’s management, CCDI cannot guarantee future results or events. CCDI expressly disclaims a duty to update any of the forward-looking statements.
CONTACT INFORMATION
ROBERTO PERRONI – CEOPAULO ROBERTO MAZZALI – CFO, IROFERNANDO BERGAMIN – INVESTOR RELATIONS
RUA FUNCHAL 160 – 8 ANDAR – 04551-903 – SÃO PAULO – BRAZILTEL: 5511-3841-5880/FAX: 5511-3841-5761EMAILS: [email protected] / [email protected]: www.camargocorrea-ccdi.com.br/ri