Download - 4Q09 Results Presentation
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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.
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Results 4Q09
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Heitor Cantergiani
CEO
Recent Events
Leonardo Diniz
Sales Officer
Operating Performance
Cássio Audi
CFO and IRO
Financial Performance
Agenda
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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)
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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)
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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;
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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
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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
Units from 50 to 82 m²
Prices starting at R$ 95,000
100% financed
Installments starting at R$ 450*
Community squares
Meticulous installation and
landscaping
Differentiated architectural project
Concern with sustainability
Rossi Ideal
Units from 42 to 63 m²
Prices starting at R$ 64,000
100% financed
Installments starting at R$ 222*
Standardized product line
Meticulous installation and
landscaping
Leisure options appropriate for low
condominium cost.
Recent agenda
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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
New Organizational Structure – Low income Segment
Recent agenda
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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
New Organizational Structure – Low income Segment
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Launches and Sales
Villa Flora – Low Income Segment
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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)
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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
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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
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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
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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
208 unidades (68% vendido)
VGV % Rossi: R$ 22,5 milhões
Lançamento: Out/09
TotalitéSão José do Rio Preto - SP
208 unidades (68% vendido)
VGV % Rossi: R$ 22,5 milhões
Lançamento: Out/09
TotalitéSão José do Rio Preto - SP
208 units (68% sold )
PSV % Rossi: R$ 22,5 millions
Launched : Oct/09
Rossi Ideal Águas Claras e Vitória Régia
Campinas - SP
400 unidades (99% vendido)
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
Rossi Ideal Cores de Mogi
Mogi das Cruzes - SP
Lançamento Jan/10 – 80% vendido
Rossi Ideal Cores de Mogi
Mogi das Cruzes - SP
Launched: Jan/10 – 80% sold
Rossi Jardins Praças Residenciais
Belo horizonte - MG
132 unidades (80% vendido)
VGV % Rossi: R$ 23 milhões
Lançamento: Dez/09
Rossi Jardins Praças Residenciais
Belo horizonte - MG
132 unidades (80% vendido)
VGV % Rossi: R$ 23 milhões
Lançamento: Dez/09
Rossi Jardins Praças Residenciais
Belo Horizonte - MG
132 units (80% sold )
PSV % Rossi: R$ 23 millions
Launchedç : Dec/09
Gragoatá Bay Residênciais
Niterói - RJ
318 unidades 86% vendido)
VGV % Rossi: R$ 106 milhões
Lançamento: Nov/09
Gragoatá Bay Residênciais
Niterói - RJ
318 unidades 86% vendido)
VGV % Rossi: R$ 106 milhões
Lançamento: Nov/09
Gragoatá Bay Residênciais
Niterói - RJ
318 units
PSV % Rossi: R$ 106 millions
Launched: Nov/09
(86% sold)
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69120 163 265
214
284
354
356
1Q09 2Q09 3Q09 4Q09
Launch Sales Inventory Sales
15%
20%21%
23%
1T09 2T09 3T09 4T09
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Nossos Resultados em Números
SOS constant performance - growth for the 4th consecutive quarter
SOS and Inventory
SOS Performance (%) Inventory sales (R$ million)
283
404
517
621
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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
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Landbank
SFH (Brazilian financial system) 83%
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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
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Other
18*New methodology comparable to its peers
Operating and Financial Targets
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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
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Nossos Resultados em Números
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%
Financial Highlights
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
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Nossos Resultados em Números
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
Financial Highlights
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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
Nossos Resultados em Números
Selling Expenses (R$ million) Administrative Expenses (R$ million)
More efficient at selling and administrative expenses
-20%
-7%
Selling and Administrative expenses
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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
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100
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200
250
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350
400
450
3/29/0
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6/29/0
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8/29/0
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2/28/1
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RSID3 IBOV IMOB
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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%).
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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
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Q&A