Date post: | 24-Jan-2015 |
Category: |
Business |
Upload: | lps-brasil-consultoria-de-imoveis-sa |
View: | 54 times |
Download: | 2 times |
.
1st Quarter, 2013
Institutional Presentation
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
(“LPS”) as of March 31st, 2013. 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 LPS 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 LPS 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.
LPS believes that based on information currently available to LPS management, the expectations and
assumptions reflected in the forward-looking statements are reasonable. Lastly, LPS expressly refuses any duty to
update any of the forward-looking statements contained herein.
2
Investment Highlights
3
Awards and recognitions | Recently
“The hearts of 96% of people beat stronger for Lopes”
In research conducted in São Paulo, IBOPE Intelligence, revealed that1:
• 9 out of 10 residents of the city know the brand Lopes
• 96% would consider the brand when buying
• 67% had any contact with the company, and among these, 76% would recommend Lopes
The 200 best Brazilian companies | 2012 Época Negócios 360º Guide2
Evaluation of 6 scopes:
• Financial results
• HR Practices
• Governance
• Environmental
• Process of innovation
• Future vision
1) Survey conducted between Jul 26, 2012 and Aug 08, 2012. 2) October, 2012 issue. Preparation: Fundação Dom Cabral.
Ranking:
50º: Lopes
68º: Homebuilder
85º: Homebuilder
96º: Homebuilder
104º: Shopping Mall
117º: Homebuilder
Top of Mind IBOPE
4
Awards and recognitions| 2012
Master Imobiliário Award
Award organized by Sindicato da Habitação de São Paulo (Secovi-SP) and Federação Internacional das
Profissões Imobiliárias, suported by Grupo Estado
Lopes was awarded in the segment “Institucional” by 2011 Annual Report of the Brazilian Real Estate Market
Top Imobiliário Award
Considered the main award of the real estate industry in Brazil
Lopes has been winning every Top Imobiliário since its first edition in 1993
Ranking Valor 1000
Listed by Valor Econômico as one of the 1000 largest business groups in Brazil
Highlighted as the 20th higher net margin among all groups
8th place in value generation among service companies
IG/ Insper Award
Assertive M&A strategy, expanding the business to other regions of the country
Lopes was considered the largest company in real estate brokerage and consulting in Brazil, in the last five years
VII Award Relatório Bancário
CrediPronto! was awarded in the segment “Best Online File Management”
Highlight for the efficiency in the mortgage approval
5
Mr. Francisco Lopes
initiates its activities
intermediating
properties
1935 40´s
50´s 60´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
Becomes reference in real
estate launchings and
presents its new logo
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
7 acquisitions in the primary market
Triples in size in a decade, strengthening its
leadership
Wins its 16th consecutive “Top Imobiliário”
award
Lopes’ IPO
Lopes starts its geographic expansion process
Lopes’ website become leader on real state
market
Joint Venture with Itaú Bank in order to create
CrediPronto, our mortgage company
The company’s first
logo
The Brokerage Market Has No Other Company With Our History
and Track Record
2010s
6
More than 300 clients in the
primary market (homebuilders)
divided between listed and non-
listed companies
5 acquisitions in the primary
market and 13 acquisitions in the
secondary market
The secondary market has
become responsible for 26% of
total sales
Breakeven point of LPS Brasil’s
stake in Credipronto! in 4Q12
Credipronto! has reached
R$ 2.8 billion in average portfolio
balance on March 2013
Lopes’ follow-on
Asset Light
Services company
Low execution risk
Top
management
team of industry Unique position
in the primary
market Brazilian
Unique
opportunity
to consolidate
the secondary
market
CrediPronto!
Mortgage company
with Highest %
growth of Brazil
since 2009.
LPS Brasil
Investment Highlights
7
Joint Venture with Banco Itaú to
provide mortgage loans
Low, mid and high-income segments
Mortgage Loan Primary Market Secondary Market
Focus on secondary market, with a
unique model of own stores and a
network of licensed brokers
Growth through acquisitions
LPS Brasil: Unique Business Platform
+
Top vehicle to Invest in Brazilian Real Estate Market.
8
Management Team
Top Management Team in Industry
Partners & Associates
Summing up over 300
Years of Real Estate
Experience
Over 30 Partners & Associates with stock Investment and long term alignment with company
Retention / Incentive tool for Top Performing Employees
Partnership Program:
9
Asset Light
Service Based Business Model
Mortgage
Business
Brokerage
Business
Immediate simple revenue recognition
Asset light Yearly Investment = Depreciation Easy short term adjustment in
G&A, in case of a market downturn.
Asset light
Inexistence of physical offices (operates inside brokerage stores)
Mortgage portfolio generates recurring cashflow.
Primary
Market
Secondary
Market
10
Virtuous Cycle of the Business Model Creating Strong Barriers to Entry
Strong Established Base
Leading, nationally recognized brand
Present in 10 Brazilian states and in the Federal
District
Extensive distribution channel
Database with more than 2 million clients
More than 300 homebuilder clients
Wide Range of Products Solid Sales Performance
Total transactions closed of R$ 4.4 billion in
1Q13, up 9% from 1Q12.
CrediPronto! originatedR$ 381 million in
1Q13 and R$ 4 billion since its creation in
2008.
Most visited website in the real estate
sector: more than 15 million visitors in 2012.
High Retention of Talent
Sales force of more than 15,000
independent brokers
Attracts and maintains its sales force
Leader in the primary market
One-stop-shop: unique and
complete solution for the client
: unique platform to
develop the secondary market
: partnership with one
of the largest retail banks in the
world, Itaú-Unibanco
11
Institutional Website
Visits on www.lopes.com.br
Source: Google Analytics,
The most visited website in the real
estate market
Strong investment in online media
Increased generation of
Leads
Higher sales conversion
• Over 15 million unique visitors in 2012
• Mobile version compatible with over 5 thousand
kinds of cell phones
• App for IPhone (more than 18,000 downloads)
• App for Android
• First brokerage company to launch an App for iPad
• Leader in presence in social networks
• More than 500,000 fans on Facebook
12
LPS Brasil’s Market Mix
*Others: Northeast, Espírito Santo, Minas Gerais and Goiás (until 3Q12).
59% 53% 56%
49% 50% 47% 47% 52% 51% 50% 50% 52% 54%
5%
5%
10% 19% 18% 24%
21%
25% 22% 21% 20%
20% 19%
14%
17% 9%
12% 9%
8% 7%
4%
4% 5% 4% 4% 4%
10% 11% 12%
10% 11%
12%
12%
10% 12% 12% 15% 13% 14%
12% 14% 12% 9% 12% 9%
13% 8% 12% 11% 11% 11% 10%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
São Paulo Rio de Janeiro Brasília South Others*
13
LPS Brasil’s total transactions closed
Transactions Closed
(R$ billion)
2.5 4.9
9.4 8.7
14.4 14.4 14.4
3.0 3.2 0.3
0.3
0.7 0.6
1.3
3.8 4.6
0.9 1.1
2006 2007 2008 2009 2010 2011 2012 1Q12 1Q13
Primary market Secondary market
18.2
2.8
5.2
10.1 9.3
15.7
19.0
14
4,0 4,4
LPS Brasil in the Primary Market
15
Market Intelligence
Brazil still represents a case for growth in the primary market
Mexico Units launched:
700 thousand/year ²
Brazil Units launched:
183 thousand/year ¹
Launches by Market – Brazil – 2012
Source: ¹ LPS Market Intelligence ² Infonavit, Softec and others (considering new homes from homebuilders and self construction).
28.5
11.1
3.9 3.3 3.0 2.7 2.4 2.2 2.0 2.0 1.9 1.5 1.3 1.1 1.0 0.7 0.3
10.8
MR
SP
Gre
ate
r R
J
BH
DF
P.A
leg
re
Salv
ad
or
Fort
ale
za
Santo
s
Cu
ritib
a
Goiâ
nia
Re
cife
Flo
rian
ópo
lis
Vitó
ria
Ca
mpin
as
Ma
nau
s
Na
tal
Belé
m
Oth
ers
79.7 billion / 183 thousand units
Total Brazil
16
Growth 2007 - 2030
Demographic Bonus Population Pyramid (millions of people)
Social classes1
Population from 18 to 64 years old
Number of Families by Income Segment (millions)
40%
60%
80%
100%
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Economically active population = 15 – 64 year-old
Dependence Index
(8%) 78% 160% 233% 291% 433%
2009
2020e
Source: IBGE, Bird, Febraban and FGV 1) Source: PNAD/IBGE Preparation: Bradesco. Take into account RO, AC, AM, AP, PA and RR regions
31.7
15.5
8.4
3.3 1.1 0.3
29.1 27.6
21.8
11
4.3 1.6
Up to R$1k
R$1k to
R$2k
R$2k to
R$4k
R$4k to
R$8k
R$8k to
R$16k
Above
R$ 16k
2007A
2030E
The demographic bonus, combined with economic growth, will lead 35.6 million people to move up from D and E classes to A, B and C classes
over the next 10 years. These families will certainly be seeking better living conditions.
Significant Creation of Demand
17
64%
36%
82%
18%
A, B and C classes D and E classes
National footprint
Stake
(%)
Payment
(R$ million)
Stake
(%)
Payment
(R$ million)
São Paulo Campinas
100% 49.52
80% 29.21 São José dos
Campos
51% 10.21 51% 15.01
Rio de Janeiro Federal District
51% 60.52
51% 142.22
Espírito Santo Bahia
60% 11.32
Minas Gerais Pernambuco
100% 4.12
51% 5.51
Sul Ceará
100% 41.02 60% 8.12
51% 36.71
18
Lopes tracks developers’ regional movements, consolidates its position as the largest consulting and sales player
1) Considering the base scenario of the acquisition 2) Concluded Acquisitions
greenfield
greenfield
greenfield
greenfield
CE
PR
RJ
BA
SP
RS
ES
SC
PE
MG
DF
CE
HIGH
MEDIUM-HIGH
ECONOMIC
HOTEL
Sales Expertise in all Market Segments
São Paulo/SP
Ibis Budget SP - Mar/13
163 un. – R$ 340,000
Location
Sales
Valinhos/SP
Floratta – Sep/12
192 un. – R$ 3,820/m²
Location
Sales
100% sold.
Developer : You
CASE
81% sold.
Developer : Engelux
CASE
São Paulo/SP
Parque da Cidade – Sep/12
612 un. – R$ 14,200/m²
Location
Sales
100% sold.
Developer : Odebrecht
CASE
São Paulo/SP
Jardim das Perdizes – Mar/13
640 un. – R$ 8,200/ m²
Location
Sales
70% sold.
Developer : PDG / Tecnisa
CASE
19
BUSINESS UNITS Rio de Janeiro/RJ
Porto Atlântico – Mar/13
804 un. – R$ 15,382/m²
Location
Sales
100% sold.
Developer: Odebrecht
CASE
Transactions Closed – Primary Market
(R$ billion)
2.5
4.9
9.4 8.7
14.4 14.4 14.4
3.0 3.2
2006 2007 2008 2009 2010 2011 2012 1Q12 1Q13
Transactions Closed – Primary Market
LPS Brasil took advantage of Listed Homebuilders growth through Capital raisings. (equity + debt)
20
(R$ Billion)
Primary Market Breakdown – Transactions Closed 1Q13
50% 44%
39% 42% 41%
50% 56%
61% 58% 59%
2010 2011 2012 1Q12 1Q13
Listed Non-Listed
26%
44%
30%
Limited exposure to large homebuilders
21
44%
31%
26%
Non-listed Homebuilders Listed Homebuilders
Secondary market
49% 53% 55%
64%
51% 47% 45%
36%
2010 2011 2012 1Q13
Other Homebuilders Top 10 homebuilders in sales
Breakdown Homebuilders
Breakdown Top 5 Homebuilders Breakdown – Homebuilders
7.6% 9.5% 9.3% 7.1%
7.1%
5.3% 6.8% 4.6%
6.1% 5.2%
5.5%
4.6%
6.1% 5.1% 4.8%
4.5%
4.7% 4.0% 4.0% 4.3%
2010 2011 2012 1Q13
1st 2nd 3rd 4th 5th
22
R$/m2
Real Estate Market Overview – Prices
* Launches occurred in residential vertical in SP Capital Source: EMBRAESP
Evolution of Average Launches’ Prices in SP
23
Nominal
INCC Adjusted
1,480 1,480 1,680 1,710 1,860 2,120 2,450
2,770 3,160 3,170 3,380 3,290 3,550
3,930
5,300
6,750 7,330
8,160
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q13
5,300 4,960
5,360 5,160 5,130 5,410 5,700 5,550 5,690 5,230 5,270
4,880 4,810 4,970
6,300
7,460 7,560 8,170
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q13
151
133
115
Jan
-09
Feb
-09
Mar
-09
Ap
r-0
9
May
-09
Jun
-09
Jul-
09
Au
g-0
9
Sep
-09
Oct
-09
No
v-0
9
De
c-0
9
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
De
c-1
0
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Au
g-1
1
Sep
-11
Oct
-11
No
v-1
1
De
c-1
1
Jan
-12
Feb
-12
Mar
-12
Ap
r-1
2
May
-12
Jun
-12
Jul-
12
Au
g-1
2
Sep
-12
Oct
-12
No
v-1
2
De
c-1
2
Jan
-13
Feb
-13
Mar
-13
Expectation Index Lopes' Confidence Index Present Situation Index
(basis: jan/2009 = 100) Source: Lopes Market Intelligence
Lopes’ Confidence Index (LCI)
Lopes is the first company to create a Real Estate Consumer Confidence Index.
Lopes’ Confidence Index intend to measure clients confidence, so Lopes can follow and anticipate, in the
short term, housing purchase tendency.
The sample has 524 interviews, with Grande São Paulo resident clients, which contacted Lopes in the last 3
months and are interested in purchasing a new home.
Lopes’ Confidence Indexes (LCI)
24
The survey take into account the
opinion for the next 6 months about
the situation of Brazil’s economy, the
financials of household and the
intention to acquire a property
The survey take into account the
current opinion about the situation of
Brazil’s economy, the financials of
household and the intention to
acquire a property
The survey take into account the
summation of the present situation
index and the expectation index
LPS Brasil in the Low Income Segment
25
HABITCASA: Focus on Low Income Segment
Focus on Low Income Segment
Units up to R$ 300 thousand
The Habitcasa brand is applied in all Lopes’ markets
26
1Q12
1Q12
1Q13
1Q13
Number of Transactions Closed
Transactions Closed
12,708 units
Transactions Closed by Price Segment – Primary and Secondary Markets
R$ 4.0 billion R$ 4.4 billion
6%
26%
27%
40%
43%
35%
13%
9%
11,404 units
27
10%
31%
24%
35%
32%
36%
20%
12%
LPS Brasil in the Secondary Market
28
Present in 10 states and the Federal District
– Covers 85% of the Brazilian GDP in 2010, combined 1
– 74 own stores
– 126 licensed brokers
– Strong presence in São Paulo and Rio de Janeiro
Unique one-stop-shop business model
Solid client base
Strong internet presence
Diversified products in the portfolio
Unique Platform Poised for Growth Well Defined Acquisition Model with a Successful Track
Record
Appreciation and alignment of interests
– Earn-out
– 51% ownership stake
Natural Consolidator
Potential synergies:
– Scale and reach: network effect
– Access to mortgage financing
– Expertise of LPS Brasil management
Pronto!: A Natural Consolidator
Acquisition strategy:
– Companies with expertise in their regional markets
– Companies with limited access to capital
– Well positioned in relevant markets
– Widespread network
Successful acquisitions through the years
– 19 acquisitions since July 2010 focused on the secondary market
– Benchmark for future partners
– Accretion
29 1 – Source: IBGE
Pronto!
Pronto has 200 stores in 10 States + Federal District : 74 owned stores and
126 licensed brokers
Acquisitions*
* Average of 40% in downpayment and 60% in earn outs linked performance 1) Considering the base scenario of the acquisition
Stake
(%)
Payment
(R$ million)
Stake
(%)
Payment
(R$ million)
51% 10.01 55% 25.61
51% 6.61 51% 17.31
60% 24.31 51% 15.51
60% 20.91 51% 11.71
51% 12.21 51% 7.11
60% 8.41 73% 2.61
51% 4.91
30
Transactions Closed Historical in the Secondary Market
Transactions Closed – Secondary Market
( R$ billion)
0.3 0.3
0.7 0.6
1.3
3.8
4.6
0.9 1.1
11%
7% 7% 6% 8%
21%
24% 24% 26%
2006 2007 2008 2009 2010 2011 2012 1Q12 1Q13
Strong growth of Secondary Market in our transactions closed.
1Q13 secondary sales reached 26% of total sales (R$1.1 billion)
.
Secondary Market Sales over total
Transactions Closed
Secondary Market
Transactions Closed
31
CrediPronto!
32
Source: Abecip, Brazil Central Bank, Federal Reserve, Haver. Preparation: Goldman Sachs
Mortgage Market
Mortgage Market as a % of GDP | Brazil 2011, others 2010
85%
63% 63% 62% 61% 60%
52%
41% 36%
23% 22%
16%
10% 5% 5%
33
Growth Drivers
Housing deficit
– 7.2 million houses (2009)
Incipient mortgage loan market
Declining interest rates
Rising employees’ income
Growing availability of long-term funding
Increasing secondary market financing
Increasing family turnover
Market Potential for Real Estate Financing
Source: Bacen and ABECIP Notes: 1 Data from 2006, except for Brazil (2009) 2 FGV’s Center for Social Studies, 2010 3 Represents the number of times a family moves to a different house during their lifetime. Source: Credit Suisse
Mortgage Loan Access (% by Social Class)2
7.7%
5.0%
3.0%
1.7%
Classes A and B Class C Class D Class E
4.0x
1.8x
9.0 – 10.0x
G-7 Mexico Brazil
Family Turnover3
5.4
6.7
7.9
6.3 5.8
1991 2000 2006 2007 2008
Quantitative Housing Shortage (millions of homes)
34
Strengthening of mortgage origination and other related services.
Leadership position
in their respective
markets
Management
Excellence High Value Brands
Joint Venture Lopes Itaú
Lopes and Itaú created the first and biggest pure mortgage company of Brazil.
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
35
Differentiated Model: One-Stop-Shop
Winning Model
Secondary Market: a significant potential for origination
74 own stores and 126 licensed real estate brokers in 10
states and the Federal District
Selective acquisitions to replicate the successful formula
used in the primary market
33% of Pronto!’s contracted sales are financed by
Credipronto!
Distinctive channel for clients in the secondary market
Over R$ 3.9 billion in financing
Incipient market in Brazil with huge expansion potential
50% of CrediPronto! transactions are originated through
Pronto!
Use of LPS Brasil’s platform and significant reduction in
CAPEX requirement
Focus
Relevance
Growth
Potential
Synergies
36
37
Volume of Origination
The Average Portfolio Balance in 1Q13 was R$ 2.8
billion.
322
381
1Q12 1Q13
Volume of origination accumulated1
178
3,959
jan/10 mar/13
2,124%
2,771
2,986
Ending portfolio
balance 1Q12
Ending portfolio
balance 1Q13
1) Does not include amortization
50%
Portfolio Balance
CrediPronto!
18%
( R$ million) ( R$ million)
( R$ million)
Ending Portfolio Balance
CrediPronto!
(R$ MM)
The ending portfolio balance grew an average of 6.3% per month since jun/10 and it’s already R$ 3 billion.
38
392 517
707 881
1,162
1,454
1,756
1,989
2,266
2,492
2,771
2,986
jun
/10
sep
/10
dec/1
0
ma
r/1
0
jun
/11
sep/1
1
dec/1
1
ma
r/1
2
jun
/12
sep
/12
dec/1
2
ma
r/1
3
Credipronto!: Unique Partnership to Capture Mortgage Loan Market Potential
Evolution of Origination (base 100 = Jan-10)1
Business Highlights
Profit Sharing with limited credit risk
Leverage on LPS Brazil’s points of sale
Differentiated process of approval and release of funds
Unprecedented credit in the market
Innovative Real Estate Financing Process
1 ABECIP
2 Bacen
* Excluding Caixa
+ Market
Leader
Largest Private Bank
in Brazil
High Growth Potential – Real Estate Financing equals only 5% of Brazilian GDP2
Credit Analysis Assessment ofthe Property
Legal Analysis Issuance of theContract
Release ofResources
24 hoursUntil 3
workingdays
2 working
days
3 working
days
5 working
days
Efficiency in Release of Credit
Ranking of Real Estate Financing 1Q13 (R$ mm)
8,628
1,639
1,411 1,396 1,102
249 91 44 34
381
Caixa Itaú Banco doBrasil
Santander Bradesco HSBC Banrisul Poupex Citibank
7.9% Market Share* 20% of Itaú
100
168 177
245 241
376 411 432 370 433
416
506
438
125 145 147 144
179 209 198 189
209 243 251 245
1,4% 1,9% 1,7% 2,4% 2,4% 3,0% 2,8% 3,1% 2,8% 3,0% 2,4% 2,9% 2,5%
4,7% 5,8% 5,1%
6,1% 5,7% 7,3%
6,4% 6,8% 6,9% 7,4% 7,5% 8,5% 7,9%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13Credipronto! Mercado Market Share CDP! Market Share CDP!
(Private Banks)
2,020
39
Operational Highlights
40
3,044 3,229
959 1,124
1Q12 1Q13
Primary market Secondary market
4,353 4,003
Transactions Closed
(R$ MM)
Transactions Closed
Number of Transactions Closed
Transactions Closed in 1Q13 increased 9% compared to 1Q12
9%
41
-10%
10.310 9.190
2.398 2.214
1Q12 1Q13
Primary market Secondary market
12,708
11,404
Financial Highlights
42
1Q13 Financial Highlights
86.0 98.7
1Q12 1Q13
15%
Net Revenue
Net Income Attributable to Controlling
Shareholders before IFRS1
Net Margin (%)
13.8
19.2
1Q12 1Q13
EBITDA2
EBITDA Margin (%)
30.9
1Q12 1Q13
24.9
16% 19% 28.9% 31.3%
24%
1) We consider the net income adjusted by non cash IFRS 3 effects (Business Combination) the most accurate net income indicator. 2) Includes results from subsidiaries and companies under shared-control, in accordance
with equity accounting, and results from non-controlling shareholders. Note: EBITDA is not an accounting measure and does not represent the cash flow for the reported periods, and therefore should not be used as an alternative
to cash flow as a measure of liquidity. The Company’s EBITDA was calculated in accordance with CVM Instruction 52. Adjusted by non recurring effects with the closing of LPS Goiania.
43
40%
1Q13 Results
44
Results 1Q13 Before IFRS
(R$ thousand)
Lauches Pronto! CrediPronto! Consolidated
Gross Service Revenue 84,685 24,398 3,287 112,370
Revenue from Real Estate Brokerage 81,060 24,398 3,287 108,745
Revenue to Accrue from Itaú Operations 3,625 - - 3,625
Earn Out - - - -
Net Operating Revenue 74,415 21,439 2,895 98,749
(-)Costs and Expenses (33,547) (14,182) (2,220) (49,948)
(-)Holding (14,190) (4,088) - (18,278)
(-) Stock Option Expenses CPC10 (303) - - (303)
(-) Expenses to Accrue from Itaú (238) - - (238)
(+/-) Equity Equivalence - - 961
(=)EBITDA 26,136 3,169 1,636 30,941
EBITDA Margin 35.1% 14.8% 56.5% 31.3%
(+/-) Other nonrecurring results (826) - - -
(-)Depreciation and amortization (2,672) (771) - (3,443)
(+/-) Financial Result 2,724 340 0 3,065
(-)Income tax and social contribution (1,659) (2,076) (2,256) (5,991)
(=)Net income before IFRS 23,704 663 (620) 23,747
Net Margin before IFRS 31.9% 3.1% -21.4% 24.0%
(-) Non-controlling Shareholders (4,526)
(=) Net Income Attributable to Controlling Shareholders Before IFRS* 19,221
Net Margin Controlling Shareholders 19.5%
*We consider the net income ajusted by non cash IFRS 3 effects (Business Combination) the best net income indicator
Lopes Net Commission
45
Net Comssion Fee
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
BRAZIL 2,3% 2,4% 2,4% 2,4% 2,3% 2,4% 2,4% 2,4% 2,4%
Primary
SP 2,9% 3,0% 2,9% 3,1% 2,8% 3,1% 3,0% 2,9% 2,9%
Habitcasa 1,9% 1,9% 2,1% 2,1% 2,0% 1,9% 2,1% 2,0% 2,4%
RJ 2,2% 2,0% 2,2% 2,1% 2,1% 2,1% 2,0% 2,2% 2,2%
Other Markets 2,1% 2,1% 2,1% 2,1% 2,1% 2,0% 2,1% 2,1% 2,1%
Secondary
SP 2,2% 2,3% 2,3% 2,4% 2,2% 2,2% 2,4% 2,2% 2,3%
RJ 2,4% 2,5% 2,4% 2,3% 2,3% 2,0% 2,3% 2,2% 2,3%
Other Markets 2,1% 2,4% 2,4% 2,5% 2,3% 2,5% 2,1% 2,5% 2,0%
CrediPronto!
1 – Weighted average portfolio balance
• The numbers of the managerial P&L were audited for 2012 by Ernst&Young and, due to its managerial nature, it does not follow accounting standards.
P&L* 2012 (R$ thousands)
46
Total
Executed contracts 1,503,028
Opening portfolio 1,767,940
Closing portfolio 2,771,051
Average portfolio balance1 2,069,854
Financial Margin 46,655
% Spread 2.3%
(-) Sales taxes -3,756
(-) Total costs and expenses -58,099
(-) Backoffice Expenses -14,193
(-) Sales Expenses -20,383
(-) Commissions paid -14,574
(-) Insurance and claims (+/-) -1,091
(+) Other revenues (Financ.) 288
(-) ADA -8,146
(-) IRPJ/CSLL (Itaú Balance) -6,636
(=) Net result -21,836
% Net Margin -50.90%
50% Profit Sharing -10,918
(+) Retention of Commissions 2,972
CrediPronto! Result (LPS) -7,946
CrediPronto!
47
CrediPronto! achieved breakeven point in November 2012, marking the moment the operation
became profitable
Breakeven Point CrediPronto!
1Q12
2Q12
3Q12
4Q12 -92
-2.375
-3.120
-2.359
-650
365 193
Out, 12 Nov, 12 Dez, 12
Allowance for Doubtful Accounts
Example of P&L with a financing contract for a $200 unit:
Ex: Sale for
$300
Ex: Sale for
$150
Month 8
$100
-$60
+$200
$240
Month 1
$100
-$60
-
$40
Month 2
$100
-$60
-$5
$35
Month 5
$100
-$60
-$25
$15
+$100: Profit for
the bank
-$50: Loss of the bank
Sale of the recovered property
Recovery of
Property
¹ Including general allowance
Default
Financial Margin
Expenses¹
Specific Allowance
Result
48
Additional Information
49
Lopes’ Contracted Sales Seasonality
* The seasonality can not be verified in 2008, because of the effects of the world financial crisis.
30%
Average of Historical
Seasonality of the
fourth quarter:
50
17% 18%
14%
23%
15%
19% 19% 21% 21%
31%
22%
32%
24% 25%
27%
26% 25% 22% 23%
29% 28% 26%
24%
26%
37%
29%
41%
16%
33% 30% 30% 27%
2005 2006 2007 2008* 2009 2010 2011 2012
1Q 2Q 3Q 4Q
Ownership Structure
Total of 114,157,316 common shares
Ownership Structure | Apr, 13
32%
23% 0.2%
45%
Rosediamond Chairman and Vice Chairman Management Free Float
51
Company Roadmap
Achieve dominant position in Secondary Market,
Growing from 26% to 40/50% of our Sales
Long Term Strategic Goals
Mantain Leadership in Primary Market
Grow the Mortgage Portfolio, achieving high
profitability levels
Develop other Opportunities tied to Services in
Real Estate Market.
52