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Institutional Presentation
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Disclaimer
This presentation does not constitute an offer, or invitation, or solicitation of an offer to subscribe for or
purchase any securities neither does this presentation nor anything contained herein form the basis to any
contract or commitment whatsoever.
The material that follows contains general business information about LPS Brasil – Consultoria de Imóveis
S.A (“Lopes”) as of the Fiscal Year ended at 30th of June 2008. It is not intended to be relied upon as advice
to potential investors. The information does not purport to be complete and is in summary form. No
reliance should be placed on the accuracy, fairness, or completeness of the information presented herein
and no representation or warranty, express or implied, is made concerning the accuracy, fairness, or
completeness of the information presented herein.
This presentation contains statements that are forward-looking and are only predictions, not guarantees of
future performance. Investors are warned that these forward-looking statements are and will be subject to
many risks, uncertainties, and factors related to the operations and business environments of Lopes and its
subsidiaries such as competitive pressures, the performance of the Brazilian economy and the industry,
changes on market conditions, among other factors disclosed in Lopes filed disclosure documents. Such
risks may cause the actual results of the companies to be materially different from any future results
expressed or implied in such forward-looking statements.
Lopes believes that based on information currently available to Lopes management, the expectations and
assumptions reflected in the forward-looking statements are reasonable. Lastly, Lopes expressly refuses
any duty to update any of the forward-looking statements contained herein.
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Investment Highlights
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Simple and Focused Value
Added Business Model
Simple and Focused Value
Added Business Model
Main Distribution Channel in a
Growing Industry with a National
Footprint
Main Distribution Channel in a
Growing Industry with a National
Footprint
Low Risk Business with a
Diversified Client Base : Cash Generator Company
Low Risk Business with a
Diversified Client Base : Cash Generator Company
Key Position to Benefit from
Market Growth due to
Homebuilders’ IPOs
Key Position to Benefit from
Market Growth due to
Homebuilders’ IPOs
UnmatchedScale and Reach
UnmatchedScale and Reach
Experienced Management
Team and Outstanding Track Record
Experienced Management
Team and Outstanding Track Record
Investment Highlights
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Mr. Francisco Lopes initiates its activities intermediating properties
193540´s
50´s60´s
70´s
80´s
90´s
00´s
Launch one of the first buildings under the condominium concept
First TV advertisement for a real estate development
Start of long term partnership with Gomes de Almeida Fernandez (Gafisa)
Launch and sell of 14 office buildings at Av. Paulista
Launch and sell of 11 office buildings at the Faria Lima region
Creation of the launching system with sales stands and marketing materials, attracting customers specially during weekends
Identification of Marginal Pinheiros as an attractive area and launch one of the first buildings in the region
Start up of sales of hotel condominium (Flats)
Partner of Grupo Espírito Santo in selling one of the largest launching in Lisboa: Parque dos Príncipes
Introduction of the concept of condominium clubs
First “Top Imobiliário” award, in 1993 – Largest Brokerage Company
Lopes becomes an important player at the segment of gated communities
Triples in size in a decade, strengthening its leadership
Wins its 15th consecutive “Top Imobiliário”
Lopes’ IPO Lopes starts its
geographic expansion process
The company’s first logo
Becomes reference in real estate launchings and presents its new logo
Brokerage Market Has No Other Company With The History and Track Record of Lopes
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Lopes’ Market Share Evolution – São Paulo Market
Uncontestable leader in the São Paulo real estate market for more than 10 years
Lopes’ Primary Market Share – São Paulo Market
Source: Embraesp. Launch GSV Market share in the greater São Paulo area. Non-official information for 2007.
Posit
ion
ing
1
2
3
4
5
1996199719981999200020012002200320042005
Competitor 1 Competitor 2
Competitor 4 Competitor 5
2006
Primary Market Positioning - GSV
2007
Source: Embraesp. Launched VGV in the greater São Paulo area.
Competitor 3
Competitor 6
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Lopes is exclusively focused on providing value-added real estate brokerage services to its client-developers, with a permanent concern of avoiding conflicts of interest
Formal relationship through exclusivity agreements
Over 160 Clients
– 46,393 effective buyers1
– 80,000 prospects included in our data base in 2007
Client-DevelopersClient-Developers Client-BuyersClient-Buyers
How
do w
e
How
do w
e
do b
usin
ess?
do b
usin
ess?
How
do w
e m
ake m
on
ey?
How
do w
e m
ake m
on
ey?2
, 3
2,
3
$ 0.53$ 0.12
$ 2.45
$ 100
$ 10
Total Price per Unit
Down-payment
GrossCommission
$ 0.73
$ 0.12
$ 1.05
Agents +Managers
Reven
ue R
ecog
nitio
nR
even
ue R
ecog
nitio
n
$ 5
Developer
1 Over the last 5 years in Sao Paulo2 Figures only for example, not related to financials3 Considering Sao Paulo market
$ 1.90
$ 3.10
Net Commission PremiumContract Advisory Fee
Simple and Focused Business Model…
Lopes Net Commission
SP GSV / Consolidated GSV 100% 95% 80% 50%
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Net Comission São Paulo
Net Comission Brazil
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Lopes’ business is clearly fundamental to the profitability and returns of its clients…
Working Capital
Is Fundamental Pre Sales
Speed of Sales Concentrated in
the Launch Period
Reliance on Sales Force Scale and EfficiencyReliance on Sales Force Scale and Efficiency
Speed of Sales is the Key
for Profitability
With a Key Role in the Real Estate Value-Chain
More than 6,500 brokers
Real Estate DevelopmentReal Estate DevelopmentBrazilian Market DynamicsBrazilian Market Dynamics
…and its scale and reach – nearly impossible to replicate – enhance this importance
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Lopes’ unmatched reach and remarkable scale reinforce each other, enhancing success rate and permanently attracting new brokers
More More AgentsAgents
(More than (More than 6,500 6,500
Brokers)Brokers)
More More Efficiency Efficiency in Salesin Sales
More More Trust Trust from from
DevelopeDevelopersrs
More More Deal FlowDeal Flow
Amplify market intelligenceAmplify market intelligence
Improve financial Improve financial
performanceperformance
Attract and maintain top Attract and maintain top
talentstalents
More More Sales Sales PointsPoints
(500 Sales (500 Sales Sites)Sites)
More More Media Media
ExposureExposure3,500 3,500
pages / pages / yearyear
Virtuous Growth Cycle: High Barrier to Entry
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Lopes is focused on providing its clients with a full range of consulting services, from land procurement advisory to product formatting, development and sale
Value-Added Services Across the Development Cycle
Determines the Site’s
Vocation
Determines the Site’s
Vocation
Masters Market
Research
Masters Market
Research
Formats ProductMeeting Buyers’“Wants
and Needs”
Formats ProductMeeting Buyers’“Wants
and Needs”
Develops Marketing Campaign
Develops Marketing Campaign
Optimizes Media
Negotiations
Optimizes Media
Negotiations
Coordinates Product Launching
Events
Coordinates Product Launching
Events
Individual Sales
Strategy Created to
Each Product
Individual Sales
Strategy Created to
Each Product
Unmatched Leader in the Real State Market Print Media
Quantity of Pages*
Lopes’ relationship with the main Brazilian newspapers guarantees the best exposure and reduces developers’ costs .
*Considering only Estado de São Paulo and Folha de São Paulo Newspapers . 12
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Notes: Managerial Reports.
Absorption calculated over available units
Granja Viana / SPGranja Viana / SP
153/197/230 m2153/197/230 m2
Reserva Santa Maria – Sep/ 07
177 units177 units
LocationLocation
Usable AreaUsable Area
SalesSales
Cachambi / RJCachambi / RJ
48 to 65 m248 to 65 m2
Norte Village – Jun / 07
850 un. – R$ 113,000,000
850 un. – R$ 113,000,000
LocationLocation
Usable AreaUsable Area
SalesSales
Paralela / BAParalela / BA
112 to 243 m2112 to 243 m2
Le Parc Residential Resort – Nov / 07
258 un. – R$ 121,000,000
258 un. – R$ 121,000,000
LocationLocation
Usable AreaUsable Area
SalesSales
Barra da Tijuca / RJBarra da Tijuca / RJ
203 to 260 m2203 to 260 m2
Santa Mônica Jardins – Nov / 06
142 un. – R$ 20,700,000
142 un. – R$ 20,700,000
LocationLocation
Usable AreaUsable Area
SalesSales
Barra da Tijuca / RJBarra da Tijuca / RJ
262 to 278 m2262 to 278 m2
Itaúna Gold
30 units – R$ 45.000.000
30 units – R$ 45.000.000
LocationLocation
Usable AreaUsable Area
SalesSales
100% sold within 3 weeks
Developer: Scopel and Desim
CASE
90% sold within 5 months.Developer: Living / Brascan
CASE
58% sold within 11 days.Developers: Cyrella /
Andrade Mendonça / Jotagê
CASE
70% sold within 1 year.Developer: Brascan
CASE
80% sold within 30 daysDeveloper: Brascan
CASEHIGH
MEDIUM-HIGH
MEDIUM
ECONOMIC
GATED COMMUNITIES
Sales Expertise in all Market Segments
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HABITCASA: Focused on the Economic Segment
• Business Unit Exclusively Focused on the Economic Segment
• Units ranging up to R$180 thousand
• Focused in all Brazilian real state market
• Own units in São Paulo, Rio de Janeiro and São Paulo’s countryside
• The other markets work with the brandThe economic segment will be one of the most important drivers for the long term growth of the real estate industry, due to the Brazilian housing deficit of 8 million homes1.
1 According to Fundação Getúlio Vargas – FGV1 According to Fundação Getúlio Vargas – FGV
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Geographic Expansion
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Lopes is Growing Nationwide
SOUTHEAST REGIONSão Paulo – Beginning of operations in 1935. Acquisition of 60% of Capucci &Bauer, in October 2007, for R$9 million (7.1x P/E 2008) and an earn-out payment.
Rio de Janeiro – Entry by greenfield operation, with beginning of operations in July 2006, with LCI-RJ. Acquisition of 100% of Patrimóvel, in November 2007, for R$175 million, R$ 35 million in Lopes shares (12.5x P/E 2008) and two earn-out payments.
Espírito Santo – Acquisition of 60% of Actual, in July 2007, for R$5.76 million (7.0x P/E 2008) and an earn-out payment.
Minas Gerais – Entry by greenfield operation with beginning of operations in February 2008.
SOUTHERN REGIONStates of Rio Grande do Sul, Santa Catarina and Paraná – Acquisition of 75% of Dirani, in May 2007, for R$15.1 million (7.5x P/E 2008) and two ear-out payments. In July 2008, Lopes acquired the 25% left by the call/put mechanism.
MIDDLE WEST REGIONFederal District – Acquisition of 51% of Royal, in November 2007, for R$12 million (9.0x P/E 2008) and an earn-out payment.
Goiás - Greenfield operation with beginning of operations in August 2008.
NORTHEAST REGIONBahia - Greenfield operation with beginning of operations in October 2007.
Pernambuco – Acquisition of 60% of Sérgio Miranda, in August 2007, for R$ 3 million (10.0x P/E 2008) and an earn-out payment.
Ceará – Acquisition of 60% of Immobilis, in January 2008, for R$2.4 million (10.0x P/E 2008) and an earn-out payment.
NORTHERN REGIONPará – Greenfield operation with beginning of operations in March 2008.
Lopes tracks developers’ regional movements, consolidates its position as the largest consulting and
sales player
PR
RJ
BA
SP
RS
ES
SC
PE
MG
PA
DF
CE
GO
Business Unit State Lopes Participati
on
Market
Habitcasa SP/RJ 100% Primary Market
LCI-RJ RJ 100% Primary Market
Lopes Dirani PR/SC/RS 75% Primary and Secondary Market
Lopes Salvador BA 100% Primary Market
Lopes Actual ES 60% Primary and Secondary Market
Lopes Sérgio Miranda PE 60% Primary and Secondary Market
Lopes Minas Gerais MG 75% Primary Market
Lopes Bauer SP – Campinas 60% Primary and Secondary Market
Lopes Pará PA 60% Primary and Secondary Market
Lopes Royal DF 51% Primary and Secondary Market
Patrimóvel RJ 100% Primary and Secondary Market
Lopes Immobilis CE 60% Primary and Secondary Market
Lopes Goiás GO 100% Primary Market
Expansion Plan
Lopes is present in 12 States and Federal District, through more than 50 cities
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Geographic Expansion Status
The Lopes Group 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
LPS Brasil 3/3 3/3 3/3 3/3 3/3 3/3 3/3
LCI-RJ 3/3 3/3 3/3 3/3 3/3 3/3 3/3
Lopes Dirani - 1/3 3/3 3/3 3/3 3/3 3/3
Lopes Salvador - - 3/3 3/3 3/3 3/3 3/3
Lopes Actual - - 1/3 3/3 3/3 3/3 3/3Lopes Sérgio Miranda
- - - 1/3 3/3 3/3 3/3
Lopes Minas Gerais - - - - 2/3 3/3 3/3
Lopes Bauer - - - - 1/3 3/3 3/3
Lopes Pará - - - - - 3/3 3/3
Lopes Royal - - - - 2/3 3/3 3/3
Patrimóvel - - - 1/3 3/3 3/3 3/3
Lopes Immobilis - - - - 1/3 3/3 3/3
Lopes Goiás - - - - - - 2/3
Note: For purposes of the information in this slide, the fraction numerators represent the number of months for which a unit has been operating, whereas the denominators represent the number of months making up the relevant period. 18
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Joint Venture: Lopes Itaú
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Strengthening of mortgage origination and other related services.
Leadership position in their
respective markets
Management Excellence
High Value Brands
Joint Venture Lopes Itaú
Establishment of a Promotion Sales Company (non-financing company) to promote and offer financial products and services – mortgage and other related – with emphasis on the
secondary market and with exclusivity to Lopes’ clients
Direct and exclusive access to its customer database
Seamlessly integrated operation with Lopes’ sales process, including an incentive compensation plan
Lopes media exposure
Service excellence Competitive financing terms and
conditions Speed and quality of processing Experienced credit analysis Successful exposure to the
lending business and in joint ventures
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Earn-out will be paid every 2 years during a 10-year period, conditioned to the achievement of certain operational metrics
Banco Itaú will have exclusivity to offer mortgages and related financial products to Lopes’ clients
Joint Venture Lopes Itaú: Transaction
Transaction
Structure
• No full recourse over Lopes’ assets• Results accounted through a Virtual P&L
Term 20 years
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Brazilian Real Estate Market
Brazil
Shortage
in units 7.9 MM
% 14.9
Northeast
Shortage
in units 2.7 MM
% 20.6%
Southeast
Shortage
in units 2.9 MM
% 12.2%
South
Shortage
in units 0.87 MM
% 10.4%
Mid West
Shortage
in units 0.54 MM
% 14%
North
Shortage
in units 0.85 MM
% 22.9%
Regional Housing Shortage
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Social Economic Scenario and Housing Shortage
5,4
6,7
1991 20062000
7,9
Source: Fundação João Pinheiro e Ministério das Cidades
Source: Credit Suisse
47 million homes
19%A/B > 10 minimum wages- US$ 1.90052%
5 – 10 minimum wages-
US$ 950 - US$ 1.900
30%C 28%
< 5 minimum wages - US$
95051%D/E 20%
Source: Losango
-6% -4% -2% 0% 2% 4% 6%
0 to 4
10 to 14
20 to 24
30 to 34
40 to 44
50 to 54
60 to 64
more than 70
Men Women
* Qualitative Housing Shortage is the number of times that a family moves to different houses in life
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Age Pyramid in Brazil - 2005 Segments by Income in Brazil
Quantitative Housing Shortage(millions of homes)
Qualitative Housing Shortage
Source: IBGE
AAA
AAA
AA
A+A+
A
A-
BBB+
BBB- BBB
-
BBB+
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Mortgage Market as a % of GDP
Mortgage Market and the Investment Grade
Source: Lopes, FMI, S&P and Santander
X Rating S&P
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Real Estate Credit Availability from Commercial Banks – Brazil
Source: IMF - 2006
CAGR Savings Accounts: 54.4%CAGR FGTS: 18.3%CAGR Total: 37.3%
(R$ Billion)
Commercial banks were mainly responsible for the expansion in real estate financing in 06’and the credit expansion trend was reflected in the market in 2007 and will be in 2008
Current Brazilian Real Estate Market Scenario
FGTS Savings Accounts
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Projection to the Mortgage Loans in Brazil
Mortgage Market in Brazil: Perspectives
8,1%
11,0%
3,8%
20182012
2,4%
20142010
14,3%
5,7%
2008 2016
Source: BACEN, Lopes and Goldman Sachs surveys.
(% of GDP)
28Source: EMBRAESP
(R$ Billion)
São Paulo Real Estate Market
The SPMR has averaged 8.4 Billion in new residential launches over the last 10 Years.
Evolution of Launches in the São Paulo Metropolitan Region
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Market absorption levels reinforce the conclusion that demand is recovering after the market’s downturn in the late 90’s
Un
its S
old
:4
1.0
k7
3%
Units Launched
41.1kMarket Absorption:
Units Sold/
Total Units Available
Initial Supply:
15.0 k
Source: Secovi-SP
YTD: 12 months period from June 2007 to May 2008
Market Absorption – City of São Paulo
São Paulo Real Estate Market – Market Absorption
Market Absorption in 2008 YTD Tota
l S
up
ply
56.k
30Source: CBIC – Câmara Brasileira da Indústria da Construção
Brazilian Real Estate Market – Launches in Units
Evolution of Launches in Units (Capital of the States Numbers)
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R$/m2
SPMR Real Estate Market Overview – Prices
Source: Secovi-SP
Nominal
INCC Adjusted
Evolution of Average Launches’ Prices in the SPMR
R$/m2
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Operational Highlights 2Q08
Contracted Sales’ Historical*
* Unaudited managerial information.
Total launched GVS
(in R$ million)
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CAGR: 35%
191%
Contracted Sales per Market
(R$ MM) (R$ MM)
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187%
245%
GVS – Primary Market GVS – Secondary Market
Organic Growth in São Paulo
Contracted GVS – Primary Market
(R$ MM) (R$ MM)
55%
Contracted GVS – Secondary Market
64%
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In 2007, the geographic diversification resulted an increase of the participation of other regions in the contracted sales, it also highlighted the good position of Lopes in the
economic segment.
Contracted Sales per Region and Segment
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Contracted Sales per Region in 2Q08(Primary Market – In GVS)
Contracted Sales per Segment in 2Q08(Primary Market – In Units)
Units Sold per Income Segment
Brazil(in units)
Brazil(in %)
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Lopes: Strong Growth in the Low Income Segment
117.5k 119.4k 122.4k 116.4k 124.8k
Average Ticket (R$)
GVS (R$MM)
Number of units
Contracted Sales*
* For operating ends, Lopes considers the economy segment as units valued at up to R$180,000 (Concept adopted in the Habitcasa unit).
7% 5% 8% 16% 20%
% Total GVS (R$MM)
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Sales Force
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Financial Highlights 2Q08
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Financial Highlights
Net Revenue 2Q08 Adjusted EBITDA* 2Q08
Adjusted Net Income** 2Q08
*Adjusted EBITDA is a non-accounting measure created by Lopes, consisting of net income before the minorities interest, income tax and social contribution tax, net financial result (financial revenues and expenses), depreciation, amortization and non-operating income. The calculation of Adjusted EBITDA does not correspond to any generally accepted accounting practice in Brazil, does not represent cash flow for the periods presented, and should not be considered a substitute for net income or for cash flow as an indicator of liquidity. Adjusted EBITDA does not have a standardized meaning and the definition of EBITDA adopted by Lopes may not be identical or comparable to the definitions of EBITDA or Adjusted EBITDA used by other companies.**Adjusted Net Income is an accountability issue decided by Lopes, it represents the amount of net income without the goodwill amortization.
(in R$ thousands)
136%
(in R$ thousands)
Ebitda MarginEbitda Margin
57% 45%
88%
26%
(in R$ thousands)
Adjusted Net MarginAdjusted Net Margin
45%
40%69%
45%
32%
(in R$ thousands)
Adjusted Net Margin Before Minority InterestAdjusted Net Margin Before Minority Interest
Adjusted Net Income Before Minority Interest 2Q08
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Guidance for 2008
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Sales’ Guidance for 2008
35%
105%
275% 596%
* The information for 2008 is based in the middle point of the divulged guidance.** Includes Lopes Bauer, located in São Paulo state.
(R$ MM)
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Additional Information
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Two seasonality components:
• Natural variation in sales related to holidays or vacation periods over the year. The first quarter is more significantly affected by summer vacations and the week of Carnival celebrations.
• Variations in sales stemming from the sales pipeline in the real estate development market, in which projects launched are subject to licensing and permit requirements, which account for significant distortions in a quarter-over-quarter comparison.
Lopes’ Contracted Sales Seasonality
Unstable sales behavior in each quarter accounts for variations in yearly sales
17% 18%14%
21%
31%
22%25%
22% 23%
37%
29%
41%
2005 2006 2007
1Q 2Q 3Q 4Q
Ownership Structure
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Total of 49,448,033 common shares
Ownership Structure Post-IPO
Institution Analyst Contact
Agora Cristiane Viana (+55 21) 2529-3393 cristiane.viana@agorainvest.com.br
Banco Espírito Santo
Rodrigo Bonsaver (+55 11) 3074-7412 rbonsaver@bessecurities.com.br
Credit Suisse Marcelo Telles (+52 55) 5283-8933 marcelo.telles@credit-suisse.com
Bulltick Rafael Pinho (+55 11) 3089-8748rpinho@bulltick.com
Itaú Tomas Awad (+55 11) 5029-4517 tomas.awad@itau.com.br
Link Celso Boin Jr. (+55 11) 4505-6701 cboin@linkinvestimentos.com.br
Planner Ricardo Martins (+55 11) 2172-2600 rmartins@plannercorretora.com.br
UBS Pactual Rodrigo Monteiro (+55 21) 3262-9208 rodrigo.monteiro@ubs.com
Analysts Coverage
Waited for 2008
Coin Valores
Fator
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