Post on 12-Jul-2015
transcript
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
1
INSTITUTIONAL PRESENTATION
SEPTEMBER, 2007
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
2
COMPANY OVERVIEW
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
3
Company Overview
65.5% 34.5%
• IPO: January 31, 2007• Volume : R$ 522 million• Proceedings, Net : R$ 454 million• Selling shareholder : Itautec (8%)
FREE FLOAT49.5%
41.7%
8.8%
IPO
50.7%
42.1%
7.1%
SEPT 10, 2007
Brazilian
International
Retail
SpecialPurpose
Companies
51.0%
• Market cap (Sept 10, 2007): R$ 1.49 billion
• Novo mercado– One share, one vote
– Full tag-along rights
– Corporate Governance
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
4
Company Overview - Summary
• Real Estate arm of one of the largest industrial conglomerates in Brazil
• Develops residential properties for all market segments and prime commercial properties
• One of the largest land banks among Brazilian developers
• All projects with excellent sales ratio
• Aggressive growth , becoming one of the largest players in São Paulo in four years of operations
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
5
Company Overview
500
453
211
5590
700
1996 2003 2004 2005 2006
1,200
2007(E)
-39%
+115%
+165%
+284%
CCDI is founded as the Real Estate manager of
the properties of Camargo Corrêa
CCDI starts operations as real estate developer
CCDI acquires stake in property in
Rio de JaneiroIPO
VGV Launched (R$ million)
1H07
2H07(E)
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
6
Main Projects – Jardim Sul
MarginalPinheiros
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
7
Main Projects – Jardim Sul
• 6 Projects launched (from 2003 to 2007)
• Total units : 656
• VGV: R$ 326.2 million
• Units Sold : 426 (65%)*
• 1 Project to be launched on 2nd Half of 2007: Empresarial Jardim Sul– Small Offices– VGV: R$ 60MM
– Units: 81
* 150 units launched in June of 2007
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
8
Main Projects – Arquitetura de Morar
Shopping Jardim Sul
Av. Giovanni Gronchi
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
9
Main Projects – Arquitetura de Morar
• 5 Projects launched (3 in Dec 2006 and 2 in Jun 2007)
• Total units : 508
• VGV: R$ 232.2 million
• Units Sold : 253 (49.8%)*
• Bolder project, with urban concept– Un-gated community– New ecological road pavements
– Landscaping and sidewalks– Delivered squares with green areas and usable leisure spaces– Project inspired by and paying tribute to the life and craft of Brazilian
maestro Tom Jobim
* 188 units launched in June of 2007
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
10
Main ProjectsVentura Corporate Towers• Partnership with Tishman Speyer (50%/50%)
• Launchings: June, 2006 (phase 1) and June, 2007 (phase 2)
• Location: Rio de Janeiro, RJ
• Potential sales: R$ 386MM (100% CCDI) – R$ 772MM (total project)
• Innovative commercial development in downtown Rio de Janeiro
• LEED® Certified Green Building
Santos Dumont Airport
Ventura Corporate Towers
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
11
Main Projects
• Launchings: 2 phases (Cyprae in Nov06 and Cassis in Feb07)• Total units : 131
• VGV: R$ 117.5MM• Units sold : 95 (72.5%)• 3rd Phase due in 2008
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
12
Main ProjectsSão Francisco
Golf ClubOsasco (RMSP)
Forte do Golf• Total units : 294
• VGV: R$ 141.1MM• Units sold : 276 (93.9%)• Launched : May, 2005
Viveiro Marília Vogt• Total units : 40
• VGV: R$ 29.1MM• Units sold : 18 (45.0%)• Launched : May, 2007
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
13
Main ProjectsMarginalPinheiros
Central Park• Total units : 99
• VGV: R$ 19.4MM (100% CCDI)• Units sold : 81 (81.9%)• Launched : Dec, 2005
Porto Pinheiros• Total units : 75
• VGV: R$ 57.3MM • Units sold : 70 (93.3%)• Launched : May, 2006
Av. Brig. FariaLima
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
14
REAL ESTATE IN BRAZIL
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
15
Real Estate Sector Attractiveness
• Declining Interest Rates and Larger Maturities Fuel Demand
• For the same unit price, monthly installment is down 36%
Household Income Required: 4x2005: ~R$5,800 (15.3 minimum wages)Today: ~R$3,700 (9.7 minimum wages)
INCREASED AFFORDABILITY IS KEY
Price of Unit : ~R$ 120,000Loan to Value : 80%Amount Financed : R$ 90,000TR:~2% per year
INTEREST (TR PLUS) 120 180 240 300 36013% R$ 1,452.01 R$ 1,259.63 R$ 1,185.11 R$ 1,152.75 R$ 1,138.0012% R$ 1,397.40 R$ 1,198.57 R$ 1,119.17 R$ 1,083.38 R$ 1,066.3811% R$ 1,343.80 R$ 1,138.72 R$ 1,054.42 R$ 1,015.05 R$ 995.5810% R$ 1,291.24 R$ 1,080.15 R$ 990.98 R$ 947.90 R$ 925.75
9% R$ 1,239.75 R$ 1,022.94 R$ 928.97 R$ 882.10 R$ 857.098% R$ 1,189.36 R$ 967.14 R$ 868.52 R$ 817.83 R$ 789.81
MONTHS
2005 Today
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
16
Real Estate Sector Attractiveness
Housing Deficit Households Monthly Household Income Required
8%
4%
n.a.
>80%
8.7
3.7
1.7
12.5
16.5
7.0
3.3
35.0
MM %
1,900
3,800
7,600
1,200
5
10
20
3.2
R$ Min. Wages
0.7
0.2
n.a
3.3
MM %
>90% 25.0 38.2 >1,200 >3.23.8
• Housing Deficit and Living Upgradescreate conditions for huge demand expansion
New Affordability
Cycle
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
17
KEY VALUE DRIVERS
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
18
Value Drivers
STRONG
WELL-RECOGNIZED
BRAND
LAND BANK
MANAGEMENT
TEAM
DIFFERENTIATED
BUSINESS
MODEL
COMFORTABLE
CASH
POSITION
STRONG GROUP
SPONSORSHIP
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
19
Strong Group Sponsorship
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
• Leadership role in several industries
• National and international presence
• Corporate Governance
• Financial soundness
• Results-oriented culture
• Capital discipline
• 67 years of operations
• Leadership role in several industries
• National and international presence
• Corporate Governance
• Financial soundness
• Results-oriented culture
• Capital discipline
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
20
Our Brand, Our Asset
• First Company to go public bearing the “Camargo Corrêa” brand name
• Brand recognition nationally and internationally (Latin America, Africa, Europe)
• Main Attributes :– Trustworthiness– Professionalism– Credibility– Efficiency– Financial Soundness
• Extensive Research: Top 3 in purchase intention on all tested markets
• Extensive construction and complex project-related background
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
21
Management Team
• Camargo Corrêa facilitates access to human capital
• Key personnel acquired from top tier companies–Young battle-tested team with over 400 projects on fold
• Business focus - scalability– Shared service center serving over 40,000 employee-base– Located in the country-side of São Paulo (lower fixed costs)
– Costs decreasing on a per-task basis– SAP® in place from day one
• Incentives– Stock option plan under implementation– Bonus program based on financial and operational performance
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
22
Land Bank
• Extensive, valuable Land Bank
– VGV: R$ 6.9 billion (100% CCDI)
– Total area: 6.4 million square meters
• Geographical, segment diversification
– 120 plots in São Paulo, Rio de Janeiro, Ribeirão Preto, Belo Horizonte
• Duration: minimum of 3 years of launchings
• Approximately 87% acquired through swaps , especially
financial
• Negotiations for new acquisitions underway
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
23
Land Bank
0.9
0.2
0.1
3.6
SP (Country and
Shore)
RMSP Belo Horizonte
4.5
1.6
Rio de Janeiro
0.2 0.3
HM
1.8
VGV*
* All Figures in R$ million, 100% CCDI
Residential
Commercial
Lots
Low Income
5,430
900
200
340
TOTAL 6,870
78.4%
13.5%
3.0%
5.1%
Type VGV* %
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
24
Land Bank
5.1
IPO
0.5
1H07 Launchings
0.3
1.9
2.2
Land Acquisition
6.9
Land Bank
VGV*
* All Figures in R$ billion, 100% CCDI
• 11 new plots - 3,900,000 m²
• R$ 1.9 billion in VGV
• 84% in swaps
• New cities– Belo Horizonte, Santos
Guarujá, Taboão da Serra, Ribeirão Preto
• 11 new plots - 3,900,000 m²
• R$ 1.9 billion in VGV
• 84% in swaps
• New cities– Belo Horizonte, Santos
Guarujá, Taboão da Serra, Ribeirão Preto
• 30 new plots – 2,000,000 m²
• R$ 0.34 billion in VGV
• Country Side of São Paulo– Campinas, Sumaré, São
José do Rio Preto, RibeirãoPreto, Jaguariúna, …
• 30 new plots – 2,000,000 m²
• R$ 0.34 billion in VGV
• Country Side of São Paulo– Campinas, Sumaré, São
José do Rio Preto, RibeirãoPreto, Jaguariúna, …
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
25
Land Bank
• No specific region and/or segment exposure in São Paulo (lands spread over 350 km²)
23 Km
15 Km
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
26
Land Bank
0.3
Under 100
0.9
100 to 200
1.3
200 to 350
1.9
350 to 500
0.8
500 to 1,000
0.7
Over 1,000
VGV* - Residential Projects
* All Figures in R$ billion, 100% CCDIR$ 000 per unit
37% within the SFH Limit
5% 15% 22% 32% 14% 12%
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
27
Land Bank HighlightsLagoa
Marapendi
Barra (RJ)450 m
Santos
LOTE 27/RJ
São Vicente
BaixadaSantista
Itaguaré
Península de São Lourenço
Bertioga
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
28
Land Bank Highlights
Marginal Pinheiros
Parque Burle Marx
Panamby
Marginal Tietê
Parque do Piqueri
Tatuapé
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
29
Land Bank Highlights
Shopping Jardim Sul
1.5 km²
Jardim Sul
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
30
Land Bank Highlights
MASP
Avenida Paulista
Paulista
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
31
Land Bank Highlights
Vila Olímpia
Av. JuscelinoKubitschek
Av. Faria Lima
Marginal Pinheiros
New Shopping Center by Iguatemi
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
32
Expected Launchings
• Forecasted VGV based on:– “In-house” land bank– Actual sales price– No monetary readjustments for
units installments
1,2
2007
1,8
2,0
2008
1,5
1,7
2009
1,9
2010 +
* All Figures in R$ billion, 100% CCDI
Potential Land Acquisitions
• Forecasted launchings in planning:– Permits and approvals– Product designing and researching
VGV*
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
33
Business Model
Units up to R$ 100,000 Units over R$ 100,000
Residential (Horizontal and Vertical) and Lots
Residential, Commercial, Lots
Own Selling Structure Third-Party Brokers
Construction and Consumer Financing from Launching
Construction and Consumer Financing after Keys
18 to 24-month Cycle 36-month Cycle
Own Construction Structure Third-Party Construction
What
Where
Construction
Sales
Funding
Returns
Acquisition of Land in Cash/Swaps
Acquisition of Land in SwapsAcquisitions
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
34
Comfortable Cash Position
(42.5)ACCOUNTS PAYABLE (LAND) – LONG
(28.5)DEBT - LONG
319.8NET CASH POSITION
19.3CASH POSITION PRE – IPO
454.0IPO PROCEEDINGS, NET
(12.4)DEBT – SHORT
390.8CASH POSITION POST – IPO
(54.9)CASH INFLOW (OUTFLOW) – 1H07
(15.2)ACCOUNTS PAYABLE (LAND) – SHORT
R$ million
2007 2008 2009 2010
R$ million
IPO Proceedings
80% Working Capital
20% Land Acquisition
Cash Position
Enough to finance growth
Model: Leverage and Swap
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
35
NUMBERS
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
36
Launchings
453
500
71
2006 Total Cassis
29
Viveiro Marilia Vogt
58
Aguas de Março
44
Ventura Corp.
Towers(Phase 2)
+10%
Cristais da Terra
200
Total
97
Fotografia
VGV*
* All Figures in R$ million, 100% CCDI
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
37
Contracted Sales
170
87
171
2006 Total 1Q07
83
2Q07
-1%
Total
* All Figures in R$ million, 100% CCDI
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
38
Units for Sale
441
187
414
488
693
1Q07
162
Launchings
18
2Q07Sales
Units under construction
Pre-construction stage
Ready Units
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
39
Financials
49.5
1H06
85.6
1H07
+73%
20.4
10.1
1H06 1H07
+102%
Net Operating Revenues* Gross Income*
* All Figures in R$ million
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
40
Financials
22.4
19.8
25.6
1Q072Q06 2Q07
5.8 p.p.
Gross Margin (%) Addressing the Margin
CCDI Other
100 100Sales
15 0Land
50 50Construction
35 35Gross Income
100 85Revenues
35% 41%Gross Margin
6 p.p.
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
41
Financials
+43%
192.1
2Q06
274.7
2Q07
204.6
Costs 147.7
Results 44.4
70.1
Revenues to be Recognized*
* All Figures in R$ million
23.0
2Q06
25.5
2Q07
2.5 p.p.
Backlog Margin (%)
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
42
Financials
2.82.7
2Q06 2Q07
+3%
Net Income*
* All Figures in R$ million
-0.8
4.0
1H06 1H07
-120%
EBITDA*
• Recognition of R$27.2MM in IPO-related expenses in the Fist Half of 2007• SG&A growth due to forecasted increased operations for the next periods
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
43
STRONG
WELL-RECOGNIZED
BRAND
LAND BANK
MANAGEMENT
TEAM
DIFFERENTIATED
BUSINESS
MODEL
COMFORTABLE
CASH
POSITION
STRONG GROUP
SPONSORSHIP
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
44
• 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.
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
45
CONTACT INFORMATION
ROBERTO PERRONI – CEOPAULO ROBERTO MAZZALI – CFO, IROFERNANDO BERGAMIN – INVESTOR RELATIONS
RUA FUNCHAL 160 – 9 ANDAR – 04551-903 – SÃO PAULO – BRAZILTEL: 5511-3841-5880/FAX: 5511-3841-5761EMAILS: ri.ccdi@camargocorrea.com.br / fernando.bergamin@camargocorrea.com.brWEBSITE: www.camargocorrea-ccdi.com.br/ri
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
46
LOW INCOME OPERATIONS
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
47
HM Engenharia e Construções Acquisition
• The Rationale– Starting operations in the Lower Income segment with scale
– Speed up the acquisition of know-how– Be a first-mover to a huge potential market– Use the most adequate business model for the segment
• The Chosen Way– Acquisition of HM Engenharia e Construções
• The Reasons for HM– Vast, proven track-record– Unique building technology
– Consolidated Land Bank– Strong partnership in place with Caixa Econômica Federal and other
financial institutions– Focus on the country-side of São Paulo (among the richest in Brazil)
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
48
HM Engenharia e Construções Acquisition
• The Deal– R$ 2.5 million paid to HM’s Shareholders– R$ 48.1 million capitalized in the company– R$ 8.1 million to be paid for HM’s Shareholders (as of March, 2007) as
dividends– R$ 40.0 million for working capital and land acquisition– Total Company valuation: R$ 60 million
• The Option– CCDI has an option to acquire another 30% of HM early in 2009 (thus
CCDI will potentially hold 81% of the Company)– Strike price: same share price of acquisition, with adjustments (higher or
lower) depending on operational (launchings) and financial (net margin) indicators
• The Operations– HM’s Shareholders are shareholders of the new Company
(proportionally)– CCDI will indicate CFO, Chief Operations Officer– HM will adopt CCDI’s Corporate Governance and Reporting Practices
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
49
Meet HM Engenharia e Construções
AraçatubaSão José do Rio PretoVotuporangaCatanduva
BarretosRibeirão PretoFrancaCatanduva
CampinasSorocabaJundiaíPiracicaba
BauruMariliaBotucatuAssisSão Carlos
São Paulo
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
50
Meet HM Engenharia e Construções
75,144
Low Income
11,543
86,687
TotalEconomic(R$100k-200k)
Units Built Units from R$ 40,000 up to R$ 100,000
Residential (Horizontal and Vertical) and Lots
Own Selling Structure
Own Construction Structure
State of São Paulo
2007YTD Launchings: R$ 20MM
2006 N.O. Revenues: R$ 65MM2006 Net Income: R$ 9MM
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
51
Meet HM Engenharia e Construções
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007
52
Meet HM Engenharia e Construções