Conference Call3Q09 Results3Q09 Results
11/12/2009
SPEAKERS
• FRANCISCO SCIAROTTA
CFO – CCDI
• LEONARDO ROCHA
CFO and IRO- CCDI
2
CFO and IRO- CCDI
FRANCISCO SCIAROTTA
• CCDI’S Chief Executive Officer since September 30, 2009
• Academic Background:
– Economics and Accounting by Universidade Mackenzie
– MBA by the Business School de São Paulo
– specialization in controllership and financial management by the Fundação Getúlio Vargas
3
Fundação Getúlio Vargas
• Professional Background:
– 2007-2009: CFO for the Shared Service Center, the Camargo Corrêa Group´s strategic area responsible for the administrative management of several of the Group’s business units
– 2004-2007: CFO for the Brazilian subsidiary of Sara Lee International
– 1999-2001: Vice President of Administration and Finance of the American multi-national company Diveo
– 1993-1999: CFO for Camargo Corrêa Industrial and Cimento Cauê –The Group´s cement company; and for PMV (Participações Morro Vermelho), the holding company for the Group´s operations.
NEW STRATEGY
4
appropriate and agile treatment
quality on construction
on-time deliveryclient focus
work by process
team work
responsibility for results
sustainable developmentintegration
costs reduction
creativity and innovation
suitable prices
more with less
net marginrecovery
BUSINESS UNITS
• Low Income
– Operations through HM Engenharia
– Devlopment of projects in accordance with Federal Program Minha Casa,
Minha Vida
• Traditional
5
• Traditional
– Residential units
– Small offices
• Triple A
– Office Building standard AAA
– 1 launching per year
GEOGRAPHIC FOCUS
6
• São Paulo
• Rio de Janeiro
• Minas Gerais
• Espírito Santo
Paraná• Paraná
Search for local
partnerships
• More than 130,000 units built
• More than 30 year of experience in development and construction of low income real estate units.
• Vertical Structure: development, construction and sales.
7
São José do Rio PretoBarretos
Ribeirão Preto
Franca
Colina
After its acquisition, HM has launched
almost R$500 million in PSV:
75% ALREADY SOLD OUT75% ALREADY SOLD OUT
sales.
• Products in accordance with Federal Program Minha Casa, Minha vida (up to R$130,000 per unit)
• Stock control acquired by CCDI on November, 2007
• Geographic Focus:
– Current: Metropolitan Region of Campinas
– Future: expansion to other cities and Estates
Colina
Jaborandi
Campinas
Piracicaba
Hortolândia
Sumaré
Santa Bárbara D’oeste
Jaguariúna
Pedreira
São Paulo
HM Engenharia
8
Part of the group of the large Brazilian
construction companies, is eligible for
differentiated treatment from CEF when its
home loan lines of financing are approved.
First company to sign a contract with CEF from
the Federal Program Minha Casa, Minha Vida
7th largest operator of the program in Brazil
Operational Performance
Highlights
� Expanding Contracted Sales� CCDI Consolidated: R$194.5 million on 3Q09 (+ 12.6% over 2Q09)
� HM Exclusive: R$117.1 million on 3Q09 (+42.2% over 2Q09)
� Speed of Sales� CCDI Consolidated: 22.4% on 3Q09 and 41.2% on 9M09
� HM Exclusive: 48.5% on 3Q09 and 38.4% on 9M09
10
� HM Exclusive: 48.5% on 3Q09 and 38.4% on 9M09
� Non-recurring accounting effects
� The construction of the second tower of Ventura Corporate Tower, in Rio de Janeiro, is in a final phase and the negotiation sale process is advanced.
� Subsequent Events: CCDI launched “Quartier” in Curitiba (October) and “Taman” in São Paulo (November). The combined Potential Sales Volume of the projects is R$ 245.0 million.
AVERAGE PRICE OF LAUNCHINGR$'000 per unit (Residential)
LAUNCHINGS
11
LAUNCHINGS(R$ MM)100% CCDI
19
1.9
12
7.5
77
.9
92
.0
65
5.1
3Q08 4Q08 2Q09 3Q09 4Q09
* There were no launchings on 1Q09.
Only HM Engenharia
launchings
36
5.0
10
1.4
56.0
24
5.0
74
0.5
15
7.4
3Q08 2Q09 3Q09 4Q09 9M08 9M09
4Q09 LAUNCHINGS
12
Location: Água Verde, Curitiba
Launching: October/2009
Total PSV: R$ 127.6 million
CCDI Share: 100%
Units: 162
Apartments: 139 m² to 335 m²
Location: Jardim Sul, São Paulo
Launching: November/2009
Total PSV: R$ 117.4 million
CCDI Share : 100%
Units: 212
Apartments: 142 m²
CONTRACTED SALES (R$MM)
CONTRACTED SALES
13
Until 2007
8.9%
1Q08
3Q09
3.3%
CONTRACTED SALES 3T09No adjustments
by launching period
20
0.3
17
2.8
19
4.5
20
9.4
69
8.5
48
8.1
50
3.0
3Q08 2Q09 3Q09 3Q09 No
Adjust.
9M08* 9M09 9M09 No
Adjust.
* Excludes Ventura Corporate Towers values.
1Q08
3.8%2Q08
1.3%
3Q08
30.4%4Q08
25.0%
2Q09
27.3%
NO ADJUSTMENTS: reversion of non-recurring adjustments made on 3Q09 and 9M09
CONTRACTED SALES
14
Other
4.0%
3Q09 CONTRACTED SALESNo adjustments
by market segments
São Paulo
(Capital +
RMSP)
Rio de
Janeiro
4.7%
Minas
Gerais
12.6%
3Q09 CONTRACTED SALESNo adjustments
by location
SALES FROM SEGMENTS UNDER
R$500,000 PER UNIT REPRESENTED 96%
SALES ORIGINED IN THE STATE OF
SÃO PAULO REPRESENTED: 86%
NO ADJUSTMENTS: reversion of non-recurring adjustments made on 3Q09 and 9M09
Low Income
52.2%
Economic
11.9%
Medium
31.9%
RMSP)
27.2%
São Paulo
(Country +
shoreline)
55.4%
4.7%
INVENTORIES PRICED TO MARKET*
15
INVENTORIES PRICED TO MARKET (R$ MM)
4Q08
6.2%
2Q09
2.9%
3Q09
5.7%
3Q09 INVENTORIES PRICED TO
MARKET By period of launching
999.0
810.8
608.7
3Q08 2Q09 3Q09
Until 2007
62.4%1Q08
6.6%
2Q08
1.2%
3Q08
15.1%
6.2%
*Excludes Ventura Corporate Towers (all periods) and Cassis (3Q09) values.
LAND BANK
16
Discontinued Projects
Aclimação - Anglo
Aldeia da Serra II - Xavier
AlphaSítio A1
0,8
LAND BANK(R$ BILLION)
Apipucos
Bertioga - Camping
Itaguaré - Proj. Delta
Lote 27
Villa São Paulo
10.09.2
2Q09 Land Bank Discontinued Projects 3Q09 Land Bank
LAND BANK – R$9,2 billion in PSV
17
Low Income
19.1%
Commercial
13.0%
3Q09 LAND BANK
by Market Segment
São Paulo
São Paulo
Shoreline
0.6%
Other
Estates
7.4%
3Q09 LAND BANKby Location
Economic
21.3%
Medium
17.5%
Mid-High
9.0%
Other
22.8% São Paulo
Capital
51.0%
RMSP
29.4%
São Paulo
Countryside
11.6%
Financial Performance
INCOME STATEMENTS RECONCILIATION
19
INCOME STATEMENTS (R$ MILLION)3T09
No Adjust.Adjustments
3T09
Reported
9M09
No Adjust.
Adjust
ments
9M09
Reported
NET REVENUE FROM SALES AND/OR SERVICES 130.8 (26.9) 103.9 379.0 (31.9) 347.0
COST OF SALES, RENTALS AND SERVICES (103.4) 5.1 (98.4) (276.8) 0.6 (276.1)
SALES (103.3) 5.1 (98.2) (276.4) 0.6 (275.8)
SERVICES (0.1) - (0.1) (0.4) - (0.4)
GROSS PROFIT 27.4 (21.9) 5.5 102.2 (31.3) 70.9
GROSS MARGIN 20.9% 81.2% 5.3% 27.0% 98.0% 20.4%
OPERATING INCOME (EXPENSES) (24.1) (39.6) (63.7) (62.6) (39.6) (102.2)OPERATING INCOME (EXPENSES) (24.1) (39.6) (63.7) (62.6) (39.6) (102.2)
SELLING EXPENSES (5.5) (4.1) (9.6) (16.4) (4.1) (20.5)
GENERAL AND ADMINISTRATIVE EXPENSES (18.5) (2.8) (21.3) (46.0) (2.8) (48.8)
OTHER INCOME (EXPENSES), NET (0.1) (32.8) (32.9) (0.2) (32.8) (32.9)
INCOME FROM OPERATIONS BEFORE FINANCIAL
INCOME (EXPENSES)3.3 (61.5) (58.2) 39.6 (70.9) (31.2)
FINANCIAL INCOME (EXPENSES) (7.5) 0.7 (6.8) (7.3) 0.7 (6.6)
FINANCIAL INCOME 3.3 1.7 4.9 16.7 1.7 18.4
FINANCIAL EXPENSES (10.8) (1.0) (11.8) (24.1) (1.0) (25.1)
INCOME BEFORE INCOME TAX AND SOCIAL
CONTRIBUTION(4.2) (60.8) (65.0) 32.3 (70.2) (37.9)
INCOME TAX AND SOCIAL CONTRIBUTION 1.3 2.0 3.3 (8.3) 2.0 (6.3)
NET INCOME (2.9) (58.9) (61.8) 24.0 (68.3) (44.2)
NET MARGIN -2.2% 218.6% -59.4% 6.3% 213.9% -12.7%
NO ADJUSTMENTS: reversion of non-recurring adjustments made on 3Q09 and 9M09
136.5 138.8 108.2 136.1
487.8360.7 393.8
3Q08 2Q09 3Q09 3Q09 No 9M08 9M09 9M09 No
GROSS REVENUES
(R$ MM)
GROSS AND NET REVENUES
20
3Q08 2Q09 3Q09 3Q09 No
Adjust.
9M08 9M09 9M09 No
Adjust.
131.4 133.5 103.9 130.8
469.6347.0 379.0
3Q08 2Q09 3Q09 3Q09 No
Adjust.
9M08 9M09 9M09 No
Adjust.
NET REVENUES
(R$ MM)
NO ADJUSTMENTS: reversion of non-recurring adjustments made on 3Q09 and 9M09
GROSS INCOME
21
40,9 29,3 5,5 27,4
169,1
71,0102,3
GROSS INCOME
(R$ MM)
3Q08 2Q09 3Q09 3Q09 No
Adjust.
9M08 9M09 9M09 No
Adjust.
31.1%21.9%
5.3%
20.9%
36.0%
20.5%27.0%
3Q08 2Q09 3Q09 3Q09 No
Adjust.
9M08 9M09 9M09 No
Adjust.
GROSS MARGIN
(%)
NO ADJUSTMENTS: reversion of non-recurring adjustments made on 3Q09 and 9M09
NET INCOME
22
8.8 7.6
(61.8)
(2.9)
64.3
(44.2)
24.0
NET INCOME
(R$ MM)
3Q08 2Q09 3Q09 3Q09 No
Adjust.
9M08 9M09 9M09 No
Adjust.
6.7% 5.7%
-59.4%
-2.2%
13.7%
-12.7%
6.3%
3Q08 2Q09 3Q09 3Q09 No
Adjust.
9M08 9M09 9M09 No
Adjust.
NET MARGIN
(%)
NO ADJUSTMENTS: reversion of non-recurring adjustments made on 3Q09 and 9M09
EBITDA
23
12.9 12.3
(57.6)
3.9
66.2
(29.6)
41.3
EBITDA
(R$ MM)
3Q08 2Q09 3Q09 3Q09 No
Adjust.
9M08 9M09 9M09 No
Adjust.
9.8% 9.2%
-55.5%
3.0% 14.1%
-8.5%
10.9%
3Q08 2Q09 3Q09 3Q09 No
Adjust.
9M08 9M09 9M09 No
Adjust.
EBITDA MARGIN
(%)
NO ADJUSTMENTS: reversion of non-recurring adjustments made on 3Q09 and 9M09
REVENUES AND RESULT TO BE APPROPRIATED
24
REVENUES TO BE APPROPRIATED(R$ MM)
RESULT TO BE APPROPRIATED(R$ MM)
*3Q08 is not adjusted to the standards of Law nº 11.638.
787.8877.3
935.0
3Q08* 2Q09 3Q09
222.1 233.4 247.1
3Q08 2Q09 3Q09
CASH AND INDEBTEDNESS
25
GROSS DEBT
(R$ MM)
27.5
CHANGE IN CASH POSITION(R$ MM)
119.3
295.6
414.9
3Q08* 2Q09 3Q09
112.4 112,4
139.9
Cash on Jun/09 Cash used on 3T09
(net)
Cash position on
Sep/09
CONTACT INFORMATION
Leonardo de Paiva Rocha
CFO and IRO [email protected] and IRO
Fernando Bergamin
Investors Relations
Tel: (55 11) 3841-5880