2Q10 Conference Call Presentation Results Presenters Marcos Lopes – CEO Francisco Lopes – COO Marcello Leone – CFO and IRO
Jan 27, 2015
2Q10 Conference Call Presentation Results
PresentersMarcos Lopes – CEOFrancisco Lopes – COOMarcello Leone – CFO and IRO
2
Forward-looking statements
This presentation does not constitute or form part of any offer, or invitation or solicitation of any offer to purchase, sell or subscribe for shares or other securities of the Company, nor shall this presentation or any information contained herein form the basis of, or act as inducement to enter into, any contract or commitment whatsoever.
This presentation contains financial and other information related to the business operations of Lopes –LPS Brasil Consultoria de Imóveis S.A and its subsidiaries (“Lopes” or the “Company”) as of and for the period ended June 30th 2010. It should not be considered as a recommendation for prospective investors to sell, purchase or subscribe for securities of the Company. The information presented herein is in summary form and does not purport to be complete. No reliance should be placed on the accuracy completeness of the information contained herein, and no representation or warranty, express or implied, is given on behalf of the Company or its subsidiaries as to the accuracy completeness of the information presented herein.
This presentation contains forward-looking statements. Investors are advised that whilst the Company believes they are based on reasonable assumptions by Management, forward-looking statements rely on current expectations and projections about future events and financial trends, and are not a guarantee of future results. Forward-looking statements are subject to risks and uncertainties that affect or may affect business conditions and results of operations, which therefore could materially differ from those anticipated in forward-looking statements due to several factors, including competitive pressures, Brazilian macroeconomic conditions, performance of the industry, changes in market conditions, and other factors expressed or implied in these forward-looking statements or disclosed by the Company elsewhere, factors currently deemed immaterial.
The forward-looking statements contained herein speak only as of the date they are made and neither Management, nor the Company or its subsidiaries undertake any obligation to release publicly any revision to these forward-looking statements after the date of this presentation or to reflect the occurrence of unanticipated events.
3
Program
I. Highlights
II. Operational Results
III.Financial Results
4
Highlights
Highlights In this quarter, Lopes reached the highest levels of its key indicators: Contracted Sales, Mortgages, Net Revenue, EBITDA and Net Income.
Contracted Sales totaled R$3.4 billion in 2Q10, 56% higher than 2Q09.
Lopes sold 12,369 units in Brazil in 2Q10, 49% higher than 2Q09, of which 34% were in the low-income segment (units prices up to R$150,000).
Sales Speed Over Supply stood at 36.4%, when isolating the low-income segment, Habitcasa´s Sales Speed Over Supply was 65.4% in the quarter, both among one of the largest sales speed of the sector.
In 2Q10, CrediPronto! granted mortgage loans worth R$146.0 million. Since its operational startup, CrediPronto! has registered mortgage portfolio of R$436.8 million.
The Company takes this opportunity to announce the new financing guidance for Credipronto! for 2010, which is R$500 million.
Lopes Net Revenue totaled R$80 million, an increase of 48% when compared to the 2Q09.
Pro-forma EBITDA in 2Q10 was R$39.1 million, an increase of 82% over 2Q09. Pro-forma EBITDA Margin in the period was 49%.
Lopes posted Pro-forma Net Income of R$24.0 million in 2Q10, up 121% on the same period last year. Pro-forma Net Margin was 30% in 2Q10.
In line with its M&A strategy, Lopes has already acquired VNC in São Paulo and Self in Niterói, Rio de Janeiro, both fucused in the secondary market. The Company also structured the foundation for the acquisition of the control of Patrimóvel, in Rio de Janeiro.
5
6
Operational Results
Launches
GVS Launched Units Launched
7
2Q09 2Q10
2,323
6,053
2Q09 2Q10
10,376
24,754
139%161%
(R$ MM)
2Q09 2Q10
7,940
11,756
381
613
Primary Market Secondary Market
Contracted Sales
(R$ MM)
Contracted Sales
8
2Q09 2Q10
2,020
3,138
163
272
Primary Market Secondary Market
2,183
56%8,321
Units Sold
49%
3,410 12,369
9
2Q09 2Q10
25.9%36.4%
Lopes' Consolidated Sales Speed Habitcasa’s Sales Speed
Sales Speed over Supply
*Management information,The Sales Speed over Supply is obtained based on the quarter’s contracted GVS compared to inventory and launches.
2Q09 2Q10
60.7%65.4%
10
37%
43%
13%7%
13%
39%27%
22%15%
38%22%
25%
34%
44%
17%5%
2Q09
2Q09
2Q10
2Q10
Units Sold
Contracted Sales
Sales by Income Segment – Primary and Secondary Markets
Total units sold = 12,369
Total Contracted Sales = R$3,410 million
49%
17%5%
5%
11%
14%
São Paulo Brasília CampinasRio de Janeiro South Region Other
42%
21%8%
6%
9%14%
2Q10
2Q09
11
Contracted Sales
Contracted Sales by Geographic Region – Primary and Secondary Markets
Primary Market
Contracted Sales Units Sold
12
2Q09 2Q10
2,020
3,138
2Q09 2Q10
7,940
11,756
48%55%
(R$ MM)
Secondary Market
Contracted Sales Units Sold
13
2Q09 2Q10
163
272
2Q09 2Q10
381
613
61%67%
(R$ MM)
Financed Volume
CrediPronto!
CrediPronto! financed in the 2Q10 R$146 million, ammounting to 521 contracts with an average payment term in the period of 270 months. In 2010
Credipronto! has already registered mortgage portfolio of R$232.9 million .
(R$ MM)
2Q09 2Q10 1H09 1H10
27.2
146.0
49.0
232.9
436%
375%
14
jan/10 feb/10 mar/10 apr/10 may/10 jun/10
216.7
247.4
290.9
330.9
384.9
436.8
Monthly Progress of the Mortgage Portfolio
CrediPronto!
(R$ MM)
26%
15
Some Examples of Successful Projects 2Q10
Maximo GuarulhosGuarulhos– April
Cury
100% SOLD
Passione FreguesiaSão Paulo - June
Even
100% SOLD
Helbor Office IISão Paulo- June
Helbor
100% SOLD
Rossi PeasseioPorto Alegre- June
Rossi
99% SOLD
96% SOLD
Code BerriniSão Paulo - June
Even
Upper Side Batel São Paulo- May
Ciromac
96% SOLD
Rossi Ideal Vila ItacaréSerra- May
Even
95% SOLD
Largo Boa VistaCuritiba- June
Equilíbio
91% SOLD
Vida Viva Clube MoinhoPorto Alegre- May
Melnick Even
91% SOLD
Residencial AlvoradaLimeira - May
Rio Verde
90% SOLD
L ItaimSão Paulo – April
Trisul
90% SOLD
Boulevard SideSalvador– April
Odebrecht
89% SOLD
Rossi IdealBoulevard ABetim– April
Rossi
88% SOLD
Premmio Vila NovaSão Paulo - June
Kallas
87% SOLD
Bela CintraSão Paulo - June
Even
87% SOLD
16
Some Examples of Successful Projects 2Q10
85% SOLD
Dream GuarulhosGuarulhos– April
Open (Even)
Helbor Offices ChampagnatCuritiba– June
Helbor
84% SOLD
Via ParqueSerra– June
Metron
84% SOLD
Campos do Conde São ClementeMonte Mor– May
Agre
84% SOLD
Parque das Flores - BosqueSão Paulo– April
Agre
83% SOLD
Dueto Parque PradoCampinas– June
Rossi
Noveau Vila da Serra Nova Lima– April
Even
82% SOLD
83% SOLD
The Graden OrquidárioSantos– June
Odebrecht
80% SOLD
Magno Água VerdeCuritiba– April
Tarjab
Pátio da PedraPalhoca– AprilPedra Branca
79% SOLD
75% SOLD
Residencial BarcasParnamirim– May
MRV
73% SOLD
73% SOLD
Buena Vista Residence ClubFortaleza– April
J Simoes Engenharia
Rossi OrquidarioSantos– April
Rossi
70% SOLD
Pateo MondrianSão Paulo– April
Gafisa
Alpha Park ResidencialAlphaville– April
Odebrecht
70% SOLD
70% SOLD
17
Financial Results
18
19
Net Commission
São Paulo Rio de Janeiro Other Markets Brazil
3.0%2.8%
2.3%2.6%
2.9%
2.2% 2.2%
2.6%2.8%
2.5%
2.1%
2.5%
2.8%
2.5%2.3%
2.6%2.8%
2.2% 2.1%
2.5%
2Q09 3Q09 4Q09 1Q10 2Q10
Net Commission by Market
Results 2Q10
Results 2Q10 (R$ ‘000)
LOPES PRONTO!
CREDIPRONTO!
CONSOLIDATED
Net Revenue 76,147 3,540 181 79,868
Operating Costs and Expenses (36,615) (2,861) (1,025) (40,501)
Stock Option Expenses (CPC 10) (816) (816)
Expenses Accrual from Itaú (238) (238)
Pro-Forma EBITDA1 39,294 679 (844) 39,129
Pro-Forma EBITDA Margin 52% 19% -466% 49%
Pro-Forma Net Income2 24,915 330 (1,238) 24,007
Pro-Forma Net Income Margin 33% 9% -684% 30%
Without Pronto! and Credipronto!’s effect, Lopes’ EBITDA would’ve been R$39
millions, with a 52% margin and a Net Income of R$25 million,
with a 33% margin.
Brasília had a R$8.3 million Income, while Campinas had a
R$2.1 million Income, what explains the minorities Interests
of R$6.0 million.
201 Pro Forma EBITDA is a non-accounting measure drawn up by Lopes, which consists on EBITDA excluding the effects of stock option expenses.2 Pro Forma Net Income is a non-accounting measure drawn up by Lopes, which consists on EBITDA excluding the effects of stock option expenses.
The CrediPronto!
Revenue does not include the
mortgages financial spread
Guidance CrediPronto!
Mortgage Guidance 2010
21
Previous Guidance Revised Guidance
350 500
43%
The Company takes this opportunity to announce the new financing guidance for Credipronto! for 2010 which is R$500 million.
Gross and Net Revenue
Net Revenue
22
2Q09 2Q10
53.9
79.9
48%
(R$ MM)
Gross Revenue
2Q09 2Q10
60.4 87.9
46%
(R$ MM)
Costs of Services Provided and Operating Expenses
Operating Costs and Expenses
(R$ MM)
23
4Q09 1Q10 2Q10
42.5 43.8 44.1
The strategic management of costs and expenses of the Company guaranteed the maintenance of their levels over the quarters.
2Q09 2Q10
21,556
39,129
Pro Forma EBITDA*
Pro Forma EBITDA
(R$ MM)
* Pro Forma EBITDA is a non-accounting measure drawn up by Lopes, which consists on EBITDA excluding the effects of stock option expenses.
EBITDA Stock Option Expenses (CPC
10)
Pro Forma EBITDA
Pronto! and CrediPronto!'s
EBITDA
Pro Forma EBITDA without
Pronto! and CrediPronto!
38.3
(0.8)
39.1
(0.2)
39.3
EBITDA Pro Forma without Pronto! and CrediPronto! 2Q10
Pro Forma EBITDA Margin
(R$ MM)
24
82%
49%
40%
2Q09 2Q10
10,849
24,007
Pro Forma Net Income*
Pro Forma Net Income
* Pro Forma Net Income is a non-accounting measure drawn up by Lopes, which consists on Net Income excluding the effects of stock option expenses.
Pro Forma Net Income without Pronto! and CrediPronto! 2Q10
(R$ MM)
Pro Forma Net Margin
(R$ MM)
25
121%
30%
20%
Accounting Net In-
come
Stock Option Expenses
(CPC 10)
Pro Forma Net Income
Net Income Pronto!
and CrediPronto!
Pro Forma Net Income without
Pronto! and CrediPronto!
22.2
(0.8)
24.0
(0.9)
24.9
2Q10 Performance - Comparative Analysis
26
49%36%
46%46%40%+22%
1Q10
20%
4Q09
33%
3Q09
27%
2Q09
20%
1Q10
30%
+49%
2,1832,602
3,0622,545
56%Contracted Sales
(R$ million)
EBITDAMargin
Pro-Forma
10,025
16,342
22,631
11,611 +134%
Net Income(R$ thousand)
Pro-Forma Net Margin
Sales, EBITDA Margin, Net Income and Net Margin Progress
3,410
23,191
Highest EBITDA of the history of the Company, and
a Margin in the same level as in the IPO.
Highest Net Income of the history of the
Company.
Record of the Contracted Sales of the Company.
Acquisitions Secondary Market
July 8th, 2010
51%
Vila Nova Conceição, São Paulo
R$7,4 million (R$1,8 million + R$0,3 million of
investiments + R$5,2 million of earn out)
Acquisition date
Share
Location
Payment
July 23rd, 2010
51%
Niterói, Rio de Janeiro
R$ 2,6 million (R$900 thousand + R$1,7 million of
earn out)
27
Lopes Current Share
Step 1 Step 2 Lopes Final Share
10%
10%
31%
51%
Patrimóvel - Acquisition
The Company will consolidate its 20% stake of Patrimóvel in its financials.
2. Lopes receives a permanent call
option to purchase 31% of Patrimóvel within 150 days for
R$51.5 MM*
1. At this present moment, Lopes
acquires permanently 10% of Patrimóvel for R$10
MM
*After 90 days, the call option payment becames CDI adjusted28
Cash Position
29* The payment will be made if the call option is exercised.** The payments made from 4Q10 are related to earn out installments of the acquisition and the amounts in the above table are based on current market conditions.
Assets
Cash and Cash & Equivalents R$132 million
Receivable From Clients R$72.4 million
Schedule of Acquisition Payments
(R$ thousand)
2Q10 3Q10 4Q10 1Q11 2Q11 Total
Primary Market 563 13,100 8,066 61,935 5,648 89,312
Patrimóvel 10,000 51,500* 61,500
3Q10 4Q11 4Q12 3Q13 4Q13 3Q14 4Q14 Total
Secondary Market 3,000 1,319 1,319 1,300 1,319 400 1,319 9,976
Total 160,788
2Q10 Results Conference Call
Portuguese English
Date: 08/06/2010, Tuesday Date: 08/06/2010, Tuesday
Time: 10h00 a.m. (BR Time) 09h00 a.m. (NY Time)
Time: 12h00 p.m. (BR Time) 11h00 a.m. (NY Time)
Telephone: (11) 4688-6361Password: Lopes
Telephone Brazil: (11) 4688-6361Telephone US: +1 888-700-0802Telephone other countries: +1 786 924-6977Password: Lopes
Replay: Replay:http://webcall.riweb.com.br/lopes/20100608/index.asp
http://webcall.riweb.com.br/lopes/20100608/english/index.asp
CONTACTS
Marcello LeoneCFO and IROTel. +55 (11) 3067-0015
Samia NemerIR CoordinatorTel. +55 (11) 3067-0257
E-mail: [email protected]/ir
Next Events
30