1Q10 Results
May 17, 2010
2
Highlights
Contracted sales of R$76.7mm (%CR2 R$58.4mm) in 1Q10, 220% higher than R$24.0mm (%CR2R$19.0mm) in 1Q09.
Revenues to be recognized of R$186.3mm and results to be recognized of R$55.4mm, with amargin to be recognized of 29.8%.
CEF Track record (“Crédito Associativo”):
R$91,5mm in cumulative disbursements from CEF (R$23,5mm in 1Q10)
2.595 contracted units
1.591 credits transferred (61% of the total)
Another 632 units approved in 2Q10, for a total of 3.227 contracetd units
Performed receivables and those from projects with delivery scheduled for 2010 totalingR$364.1mm (71% of the portfolio).
Reiteration of the 2010 PSV launch Guidance of R$400mm.
3
Highlights
(EPS R$ 0,16)
(EPS R$ 0,03)1,3
7,2
1Q09 1Q10Net Profit
457%
2,3
18,1
1Q09 1Q10EBITDA
698%
51,7
101,6
1Q09 1Q10Net Revenue
97%
9,7
25,2
1Q09 1Q10Gross Profit
159%
Contracted Sales
4
19,1
34,628,0
61,9 58,4
4,9
12,1
9,2
18,518,3
24,0
46,7
37,2
80,476,7
1Q09 2Q09 3Q09 4Q09 1Q10
Total and %CR2 Contracted Sales (R$mm)
CR2 Partners
4,1 4,7 2,6
23,7 19,0
15,0
29,9 25,4
38,1 39,4
19,1
34,6
28,0
61,958,4
79%
86%91%
62%67%
1Q09 2Q09 3Q09 4Q09 1Q10
%CR2 Contracted Sales by Region (R$mm)
Metropolitan Area of SP Capital and Metropolitan Area of RJ %RJ
Contracted Sales
5
168,923
120,788 123,890
152,316 152,229
1Q09 2Q09 3Q09 4Q09 1Q10
Average Price Units Sold (R$)
14.4 22.0 19.3 20.5
27.1 4.4
7.9 5.8
36.9 28.0
0.3
4.7
2.9
4.4 3.3
19.1
34.6
28.0
61.958.4
75%64% 69% 33%
46%
1Q09 2Q09 3Q09 4Q09 1Q10
%CR2 Contracted Sales by Average Price (R$mm)
< R$130 k R$131 k - R$350 k R$351 k - R$500 k % < R$130 k
6
Inventory at Market Value and SoS
SoS (%CR2) = [Contracted Sales in the period / (Inventory at beginning of period + launches of the period net of physical exchange)]* After price adjustment
30% of Shareholders’ Equity
Period
(R$ mm)
Inventory at the
Beginning of
Period
Launches
(CR2's share)
Contracted
Sales
(CR2's share)
Inventory at the
End of PeriodSoS
Contracted Sales
from Launches in
the Period
Inventory's
Contracted
Sales
2006 0.0 33.4 11.9 21.5 35.7% 11.9 0.0
1Q07 21.5 62.4 31.5 52.4 37.6% 23.6 7.9
2Q07 52.4 20.4 18.5 54.3 25.4% 8.8 9.7
3Q07 54.3 63.1 32.4 85.0 27.6% 20.4 12.0
4Q07 85.0 170.3 59.2 196.1 23.2% 39.3 19.9
1Q08 196.1 47.9 27.2 216.8 11.1% 15.9 11.3
2Q08 216.8 131.3 144.4 203.7 41.5% 93.7 50.6
3Q08 203.7 113.9 67.6 250.0 21.3% 44.2 23.4
4Q08 250.0 0.0 12.6 237.5 5.0% 0.0 12.6
1Q09 237.5 0.0 19.1 218.4 8.0% 0.0 19.1
2Q09 218.4 0.0 34.6 183.8 15.8% 0.0 34.6
3Q09 183.8 0.0 28.0 155.8 15.2% 0.0 28.0
4Q09 155.8 56.7 61.9 150.5 29.1% 31.5 30.4
1Q10 173,4* 0.0 58.4 115.0 33,7%* 0.0 58.4
7
Inventory at Market Value and SoS
100% of inventory
available for SFH
77%
23%
Inventory at Market Value Region
Capital and Metropolitan Area of RJ
Metropolitan Area of SP
77%
18%
5%
Inventory at Market ValueAverage Price
> R$130k
R$131k - R$350k
R$351k - R$500k
74%
19%
7%
Inventory at Market ValueConstruction Status
Under Construction
Construction not Started
Completed
8
Project Conclusions
R$87mm of PSV delivered in 1Q10....
Project: Barra Allegro
Location: Barra da Tijuca (RJ)
# Units: 144
% Sold: 98% (as of March, 2010)
PSV: R$42mm
Delivery Date: February, 2010
Project: Villaggio del Mare
Location: Barra da Tijuca (RJ)
# Units: 120
% Sold: 98% (as of March, 2010)
PSV: R$45mm
Delivery Date: March, 2010
Project: Verano II
Location: Barra da Tijuca (RJ)
# Units: 346
% Sold: 89% (as of March, 2010)
PSV: R$105mm
Delivery Date: May, 2010
...and another R$105mm in 2Q10.
9
Project Conclusions
We intend to reach the end of 2010 with R$782.8mm of PSV delivered, 77% of the total launched
204
359
142
36
117
102
45
6
322
461
187
42
Delivered: from 2008 to 1T10
To be Delivered 2010
To be Delivered 2011
To be Delivered 2012
Delivery Schedule: PSV (R$mm)
CR2 Partners
15 projects (77% of Launched)
1,446
3,875
1,344
300 97%
88%
61%95%
Delivered: from 2008 to 1T10
To be Delivered 2010 To be Delivered 2011 To be Delivered 2012
Delivery Schedule: Units
Sold Inventory
5.321 Units
10
Residential Land Bank
100% of land bank in the economy segment
0-3 minimum wages MCMV: Project already approved by the Municipal Authorities and inprocess of approval by CEF
Development City (State) SegmentAverage Price
(R$ 000)Units
Total PSV
(R$ MM)
CR2's PSV
(R$ MM)% CR2
Splendore Valqueire II Rio de Janeiro (RJ) Economy 188 160 30 24,0 80%
Jardim Paradiso IIB - III Nova Iguaçu (RJ) Economy 68 963 65 60,7 93%
Top Life Village (Colônia Paraíso) S. J. Campos (SP) Economy 87 392 34 29,2 86%
Manaú 2 Guarulhos (SP) Economy 86 420 36 31,0 86%
Pq. das Águas II São Gonçalo (RJ) Economy 162 1.152 187 149,3 80%
Pq. das Águas III São Gonçalo (RJ) Economy 171 492 84 67,2 80%
Pq. das Águas IV São Gonçalo (RJ) Economy 89 942 84 67,2 80%
Cidade Paradiso Nova Iguaçu (RJ) Economy 72 30.183 2.180 2.180,0 100%
Total 78 34.704 2.700,3 2.608,6 97%
Development City (State) SegmentAverage Price
(R$ 000)Units
Total PSV
(R$ MM)
CR2's PSV
(R$ MM)% CR2
Sta. Cecília – Madureira Nova Iguaçu (RJ) 0-3 minimum wage 49 3.780 185,2 185,2 100%
Total 49 3.780 185,2 185,2 100%
11
Commercial Land Bank
Barrartes and Warehouse projects: positively affected by the choice of Rio as the site of theOlympic Games
Development City (State) SegmentM2
(buildable
Average
Price
Total PSV
(R$ MM)
CR2's
PSV% CR2
Barrartes Rio de Janeiro (RJ) Commercial 45,000 7,500 337.5 236.3 70%
Warehouse ABEAR Rio de Janeiro (RJ) Commercial 64,000 4,500 288.0 201.6 70%
Niterói Plaza Niterói (RJ) Commercial 6,500 7,000 45.5 31.9 70%
Total 115,500 5,810 671.0 469.7 70%
12
Income Statement
51.682
71.837 75.223
1Q09 2Q09 3Q09 4Q09 1Q10
Net Revenue (R$mm)
101.357 101.557
9.732
13.962
16.363
25.062 25.223
18,8% 19,4%21,8%
24,7% 24,8%
1Q09 2Q09 3Q09 4Q09 1Q10
Gross Profit (R$mm) and Gross Margin
2.268
7.781 7.284
15.643 18.094 4,4%
10,8% 9,7%
15,4%17,8%
1Q09 2Q09 3Q09 4Q09 1Q10
EBITDA (R$mm) and EBITDA Margin
1,286
3,552
5,005 5,253
7,160
2,5% 4,9%6,7% 5,2% 7,1%
1Q09 2Q09 3Q09 4Q09 1Q10
Net Profit (R$mm) and Net Margin
13
Revenues and Results to be Recognized
Revenues to be Recognized of R$186.3mm
Results to be Recognized of R$55.4mm (margin of 29.8%)
Revenues and Results to be Recognized (R$ 000) 1Q10 1Q09 ∆1Q/1Q 4Q09 ∆1Q/4Q
Revenues to be Recognized 186,255 284,746 -35% 201,421 -8%
Cost of Units Sold to be Recognized 130,834 193,016 -32% 142,150 -8%
Results to be Recognized 55,421 91,730 -40% 59,271 -6%
Margin to be Recognized 29.8% 32.2% -2.5 p.p. 29.4% 0.3 p.p.
14
Balance Sheet - Liquidity
Stronger cash position....
...and improved debt profile.
39,0 34,0 36,1 35,4
45,4
1Q09 2Q09 3Q09 4Q09 1Q10
Cash (R$mm)+R$10,0mm
57,9
89,6
123,9 121,4 112,9
29,7
29,9
17,9
58,0 74,8
34%
25%
13%
32%40%
87,6
119,5
141,8
179,4 187,6
1Q09 2Q09 3Q09 4Q09 1Q10
Long Term Debt
Short Term Debt
% Long Term Debt
19,1 24,7 24,5 47,7
69,7
68,5
94,8 117,3
131,7 117,9
87,6
119,5
141,8
179,4 187,6
-5,3% -2,5% -3,1%
3,2%
6,4%
13,0%
22,7%
28,0%
37,9% 36,8%
1Q09 2Q09 3Q09 4Q09 1Q10
SFH
Corporate Debt
Net Debt/Equity (ex-SFH)
Net Debt/Equity (including SFH)
15
Balance Sheet – Receivables from Clients
70% of portfolio
On/Off Balance Receivables (R$ 000) 1Q10 4Q09
Receivables from Real Estate Developments and Sales
Short Term 147.984 155.432
Long Term 213.955 183.642
(+) Total 361.939 339.074
Receivables to be Recognized
Short Term 61.115 73.823
Long Term 88.360 87.221
(+) Total 149.475 161.044
Short Term Total 209.099 229.255
Long Term Total 302.315 270.863
(=) Total Receivables 511.414 500.118 204,11940%
307,29560%
Total Receivables (R$ 000)Financing Bank
CEF
Private Banks
102,83920%
261,21751%
108,31321%
39,0468%
Total Receivables (R$ 000)Projects Delivery Forecast
Performed Receivables
2010
2011
2012
Credits to be
tranferred during
construction
16
Balance Sheet – CEF Relationship
CEF Status:
1,591 credits transferred, equivalent to R$138.9mm of PSV on mortgages
R$91.5mm cash disbursed by CEF
Accounts Receivable from CEF: R$47.4mm
Another 632 units contracted in 2Q10, for a total of 3,227 units
8.7 9.8
22.9 26.1
23.5
7.5 8.8
29.7
43.2
47.4
1Q09 2Q09 3Q09 4Q09 1Q10
Disbursements x Receivables from CEF (R$mm)
Disbursements R$000 Receivables (balance) R$000
174
495
967
1,274
1,591
630
2,595 2,595 2,595 2,595
3,227
28%19%
37%49%
61%
1Q09 2Q09 3Q09 4Q09 1Q10
Contracted Units x Credits Transferred
Credits tranferred to CEF Units contracted by CEF % Transferred
17
Investor Relations
Rogério FurtadoChief Financial and Investor Relations Officer
Paulo CastroFinancial and IR Analyst
Contact:
www.cr2.com.br/ir
Phone: +55 (21) 3095-4600 / 3031-4600
IR Contact
This presentation contains certain statements that are neither reported financial results or other historical information. They are forward-looking statements.
Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by
the statements. Many of these risks and uncertainties relate to factors that are beyond CR2’s ability to control or estimate precisely, such as future market
conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators, the Company's ability to continue to obtain
sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or
technological trends or conditions, inflation and consumer confidence, on a global, regional or national basis.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. CR2 does not
undertake any obligation to publicly release any revisions to these forward looking statements to reflect events or circumstances after the date of this
presentation.