3Q08 Results Presentation

11

3Q08 Results

2

3Q08 Results Conference Call

Heitor CantergianiCEO

Strengths

Main Highlights

Leonardo DinizSales Officer

Launches and Sales

Economic Segment

Geographical Diversification

Cássio AudiCFO and IRO

Financial Performance

Indebtedness

Capitalization

New guidance 2008-2009

Agenda

3

Heitor Cantergiani

Strengths & Main Highlights


4


Strengths

Excellent sales performance

Maintenance of credit lines for construction financing

Diversified Land Bank, enabling launches optimization

Good positioning in the economic segment

Conservative financial management

Strong and result driven team

5

Main Highlight


Launches

3Q08 R$ 720 million in 13 projects

9M08 R$ 2,073 million in 36 projects

Contracted sales

3Q08 R$ 702 million in 2,630 units

9M08 R$ 1,828 million in 7,060 units

Economic Segment

R$ 257 million launched in 5 projects

Land Bank

R$ 19.4 billion PSV, of which 77% in swaps

Capital Increase Supported by the Controlling Shareholder

New guidance for 2008-2009

6

Leonardo Diniz

PSV, Sales, Geographical Diversification


143 202 285601484 518

1,472

1,295

3Q07 3Q08 9M07 9M08

Rossi

Partners

7

3Q08 - 13 Projects:

Launches

Launches breakdown by income segment and state – 9M08


9M08 - 36 projects

Campinas, Curitiba, Guarulhos, Lauro de Freitas, Mogi das Cruzes, Rio de Janeiro, São Paulo, Salvador, Serra, Sorocaba.

Launches (R$ million)

627 720

1,579

2,073

15%

31%

39%

23%

15%

10%

7%6%

> R$ 500,000

Economic Segment

R$ 350,000 to R$ 500,000

< R$ 200,000

R$ 200,000 to R$ 350,000

Commercial

28%

19%

10%8%

8%

8%

5%

4%

4%

3%2%

São Paulo (other cities)

São Paulo (metropolitan region)

Bahia

Ceará

Rio de Janeiro

Espírito Santo

Rio Grande do Sul

Minas Gerais

Rio Grande do Norte

Paraná

Santa Catarina

Pernambuco

70 162 229443281

539

815

1,385

3Q07 3Q08 9M07 9M08

Rossi

Partners

8

Contracted Sales breakdown by income segment and state - 9M08


Contracted Sales (R$ million)

351

702

1,044

1,82875%

100%

Sales

26%

22%20%

18%

10%

4%

> R$ 500,000

R$ 350,000 to R$ 500,000

Economic Segment

R$ 200,000 to R$ 350,000

< R$ 200,000

Commercial

23%

20%

13%11%

10%

8%

4%4%

3%

2%1%

São Paulo (metropolitan region)

São Paulo (other cities)

Rio Grande do Sul

Espírito Santo

Rio de Janeiro

Bahia

Rio Grande do Norte

Ceará

Paraná

Minas Gerais

Santa Catarina

Pernambuco

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EconomicSegment


9M08

Launches: R$ 521 million PSV, 13 projects, 3,208 units

5 Buildings

8 Residential Plazas

Contracted Sales: R$ 374 million

4Q08

Projects: approximately R$ 200 - 250 million PSV, 10 -12 projects

1 Buildings

6 Residential Plazas

5 condominiums in 2 Villa Flora’s communities

Villa Flora Sorocaba

10

Potential PSV (100%): R$ 19.4 billion

Rossi’s Share: R$ 13.4 billion

Land bank PSV in R$ million

3Q08

Total

Total Rossi

19,428 13,414

Breakdown

Launches PSV 3Q08

Final 2Q08

Origination 2Q08

Final 3Q08

(720)

3,876

19,428

(518)

2,169

13,414

Acquisition method

Land Bank distributed in 157 lands and 59 cities, not concentrated.

13.4 million m2 buildable area

future launches (in units) – 100,124

4 to 5 years PSV in the bag for future launches

Land Bank


Permuta Física46%

R$ billion

16,271 11,763

Cash23%

Financialswap31%

Swapby units46%

Partners

Rossi

9.6 10.1 10.7 11.8 13.4

4.0 4.6 4.64.5

6.0

0

5

10

15

20

25

3Q07 4Q07 1Q08 2Q08 3Q08

11

Land Bank : Potential PSVFocus on low to middle income segment – 66% of PSV < R$ 350,000

Land Bank 3Q08 (in R$ million) - PSV by State and Income Segment


State Economic Segment

untilR$200,000

R$200,000 to

R$350,000

R$350,000to

R$500,000

Above R$500,000

Commercial Lots Total %

Bahia 354 - 1,124 - - - - 1,478 8%

Ceará 441 - - 104 - - - 545 3%

Distrito Federal 256 - 45 - - 457 - 757 4%

Espírito Santo 481 - - - 62 123 - 665 3%

Goiás 922 - - - - - - 922 5%

Mato Grosso do Sul 56 - - - - - - 56 0%

Minas Gerais 639 - - 132 228 - - 999 5%

Paraná 100 - - - 66 136 - 303 2%

Rio de Janeiro 496 - 1,308 195 217 - - 2,217 11%

Rio Grande do Norte 174 - 79 - - - - 254 1%

Rio Grande do Sul 2,818 - 11 895 - - - 3,724 19%

São Paulo City 318 - 213 210 1,080 129 - 1,950 10%

São Paulo Interior 1,465 459 987 1,185 657 53 754 5,559 29%

Total 8,520 459 3,767 2,720 2,310 898 754 19,429 100%

Distribution 44% 2% 19% 14% 12% 5% 4% 100%

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Geographical Presence


Long Term Sustainable Competitive Advantage: Building up Local Knoew-how

59 Cities 14 States

PE

RN

PB

RS

PR

SP

MG

RJ

ES

BA

SC

CE

GO

MS

AM

PAMA

AL

AC

RRAP

ROTO

PI

MA SE

Regional São Paulo (RSP)São PauloCotiaGuarujáGuarulhosJacareíMogi das CruzesOsascoPraia GrandeSantana de ParnaíbaSanto AndréSantosSão Bernardo do CampoSão Caetano do SulSão José dos CamposSão PauloMato Grosso do SulCampo Grande

Regional Belo Horizonte (RBH)Minas GeraisBelo HorizonteContagemNova LimaUberlândiaDistrito FederalBrasíliaÁguas ClarasGamaGoiásGoiâniaValparaiso

Regional Sul (RPOA) ParanáCuritibaSanta CatarinaFlorianópolisRio Grande do SulCanoasCaxias do SulNovo HamburgoPorto AlegreSão Leopoldo

Regional Rio de Janeiro (RRJ)Rio de JaneiroItaguaíNiteróiNova IguaçuRio de JaneiroVolta RedondaEspírito SantoSerraVila VelhaVitóriaMinas GeraisJuiz de ForaBahiaLauro de FreitasSalvador

Regional Nordeste (RNE)CearáFortalezaPernambucoRecifeRio Grande do NorteNatal

Regional Oeste Paulista (ROP)São PauloMaríliaRibeirão PretoSão CarlosSão José do Rio Preto

Regional Campinas (RCPS)São PauloCampinasHortolândiaIndaiatubaJaguariúnaPaulíniaPiracicabaSorocabaSumaréValinhosVotorantim

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Cássio Audi

Financial Performance


60

134182

314

3Q07 3Q08 9M07 9M08

180

341

523

837

3Q07 3Q08 9M07 9M08

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Financial Highlights (R$ million)


Net RevenueGross Income and Gross Margin

33.1%

39.3%

34.9%

37.5%

Unearned Revenue and Results 3Q08 2Q08 Var.

Unearned Revenues 1,736 1,461 19%

Unearned Results 586 506 16%

Backlog gross margin 33.7% 34.6% -0.9 p.p.

90%

60%73%

125%

15


Gross Margin Breakdown and Performance

Net Operating Revenue(R$ million)

3Q08 3Q07 Var. 9M08 9M07 Var.

Sale of property and services 317 180 76% 786 516 52%

Monetary Variation (INCC) 37 4 757% 83 21 290%

(-) Sales taxes (13) (5) 168% (32) (15) 110%

Total 341 180 90% 837 523 60%

Construction words + lands 196 115 70% 495 327 51%

Financial charges 11 5 115% 28 14 104%

Total 207 120 72% 523 341 54%

Gross Margin 39.3% 33.1% 6.1 p.p. 37.5% 34.9% 2.7 p.p.

Adjusted Gross Mg (-) Finan. Charges 42.6% 36.1% 6.5 p.p. 40.9% 37.5% 3.4 p.p.

Adjusted Gross Mg (-) Finan. Charges (-) INCC 35.7% 34.5% 1.1 p.p. 34.4% 34.9% -0.4 p.p.

Adjusted Gross Mg (-) INCC 31.9% 31.5% 0.4 p.p. 30.7% 32.1% -1.4 p.p.

2442

88

113

3Q07 3Q08 9M07 9M08

16

Financial Highlights (in R$ million)


EBITDA and EBITDA Margin Net Income and Net Margin

EBITDA 3Q08 3Q07 Var. 9M08 9M07 Var.

Operating Income (Loss) 49 31 60% 130 107 21%

(+) Depreciation and Amortization 1 0 64% 1 1 50%

(+/-) Financial Expenses (Revenues) (0) (8) -98% (24) (26) -7%

(+) Financial Charges 11 5 115% 28 14 104%

(-) Profit Sharing (4) (2) 79% (10) (7) 37%

EBITDA 58 27 115% 125 89 41%

EBITDA Margin 16.9% 14.9% 2.0 p.p. 15.0% 17.0% -2.0 p.p.

14.9%

16.9% 17.0%

15.0%

41%

115%

13.5% 13.5%

16.9%

28%

72%

12.2%

27

58

89

125

3Q07 3Q08 9M07 9M08

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Indebtedness


3Q08 2Q08 Var.

Indebtedness – Short Term 166.9 110.7 50.8%

Construction Financing 156.8 93.6 67.5%

Debentures 10.1 17.1 -40.9%

Indebtedness – Long Term 613.0 512.6 19.6%

Debentures 300.0 300.0 -

Construction Financing 67.0 112.3 -40.3%

Working capital 246.0 100.3 145.3%

Total Indebtedness 779.9 623.3 25.1%

Cash position 174.3 134.2 29.9%

Net Indebtedness 605.6 489.1 23.8%

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Total Debt: R$ 779.9 millionCash Position: R$ 174.3 million

Indebtedness

Cash and Banks

Investments - ST

Investments - LT


17%

35%

48%82%

17%

1%

Working capital

Debentures

Construction Financing - LT

Construction Financing - ST

39%

32%

20%

9%

Amortization Schedule

21.0

134.0153.0

69.0

167.0

136.0

100.0

2008 2009 2010 2011 2012 2013 2014...

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Capital Increase Supported by Controlling Shareholders

Market Value RSID3

Number of shares 157,703,628

Number of new shares issued 34,482,760

Total shares after capital increase 192,186,388

Share price: 11/7/2008 R$ 3.75

Market Value R$ 720,698,955.00

Balance – Comparison (R$ million) 3Q08 3Q08 with capitalization

Net Debt 606 456

Cash position 174 324

Shareholders’ Equity 1,177 1,327

Net Debt/Shareholders’ Equity 51% 34%

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New Guidance 2008-2009

2008

Previous Current

Rossi’s Share (R$ million) Max. Min. Average Max. Min. Average

Launches PSV 2,350 2,650 2,500 2,000 2,300 2,150

2009

Previous Current

Rossi’s Share (R$ million) Max. Min. Average Max. Min. Average

Launches PSV 2,800 3,200 3,000 2,100 2,400 2,250

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Cássio Elias AudiCFO and Investor Relations [email protected]. (55 11) 3759-7431

Maria Claudia BiolchiniInvestor Relations [email protected]. (55 11) 3759-7516

IR Team


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This material is a presentation of general background information about Rossi Residencial S.A. (“Rossi”) as of the date of thispresentation. Information contained herein has been summarized and does not purport to be complete. This presentation shall not beconsidered an advice of investment by potential investors. This presentation is strictly confidential and may not be disclosed to anythird person. There are no representations or warranties, express or implied, regarding the accuracy, fairness, or completeness of theinformation presented herein, which shall not support any decision of investment.This presentation contains statements and information that are forward-looking pursuant section 27A of the Securities Act of 1933, asamended, and Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements and information are onlypredictions and cannot assure Rossi’s future performance. Investors have been cautioned that any such forward-looking statementsand information are subject to many risks and uncertainties relating to the operations and business of Rossi and its subsidiaries. As aresult of such risks and uncertainties, the actual results of Rossi and its subsidiaries may be materially different from any future resultexpressed or implied in the forward-looking statement or information contained herein.Although Rossi believes that the expectations and assumptions reflected in the forward-looking statements and information arereasonable and have been based on data currently available to its officers and directors, Rossi cannot guarantee future results orevents. Rossi does not assume the commitment 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 SecuritiesAct of 1933, as amended. Any offering of securities to be made in the United States will be made by means of an offeringmemorandum that may be obtained from 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 withinArticle 19 (5) of the Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (as amended, the “FinancialPromotion Order”), (ii) are persons falling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”)of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement toengage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with theissue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons togetherbeing referred to as “relevant persons”). This material is directed only at relevant persons and must not be acted on or relied on bypersons who are not relevant persons. Any investment or investment activity to which this material relates is available only to relevantpersons and will be engaged in only with relevant persons.

This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase anysecurities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitmentwhatsoever.

Disclaimer


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Date post:	14-Feb-2017
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