Second Quarter 2009 ResultsConference CallConference Call

Investor Relations ContactJulia Freitas Forbesri@gafisa.com.br

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Financial and Operational Performance – Wilson Amaral, CEO

Overview of 2Q09 Results 

p ,

2

Highlights of the Quarter

2Q09 launches decreased 56% from 2Q08 based on conservative launch strategyLaunches declined to R$626 million in 2Q09 from R$1,409million in 2Q08

Pre‐sales increased 9% from 2Q08; sales velocity reached 24%Pre‐sales rose to R$835 million in 2Q09 from R$764 million in 2Q08

fNet operating revenues rose 54% from 2Q08Net operating revenues increased to R$706 million in 2Q09 from R$459 million in 2Q08

2Q09 adjusted EBITDA reached R$142 million (20.1% EBITDA margin), a 69% increase over 2Q082Q09 adjusted EBITDA reached R$142 million (20.1% EBITDA margin), a 69% increase over 2Q08

Net income before minority interest and stock options increased to R$81 million in 2Q09, a 26%increase from R$64 million in 2Q08. Net income was R$58 million in 2Q09

R$600 million debenture was received in early May and disbursed to Tenda. Funds are available forany project meeting Caixa specifications

In this quarter, Tenda completed 29 projects totaling 2,151 units, Gafisa completed one project andAlphaville completed a project in Campinas‐SP with 390 lots

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Recent Developments

Strong Sales Performance of Mid/Mid‐high Segments: Gafisa and Alphaville experienced strong

sales, representing 56% of the consolidated figure.

Affordable Entry‐Level Segment: 2Q09 sales were R$367 million on 4,366 units sold at an average

price of approximately R$84,000. Tenda’s customers benefit from the government’s housing

program, Minha Casa, Minha Vida.

Diversified Geographies and Products: the company continues to strengthen its well‐known brands.

2006 Debenture Covenant Successfully Renegotiatedwith 97.65% of approval.

Gafisa Completed Second Securitizationwith immediate net cash proceeds of R$70 million.

Cancellation of Public Offering of Shares: Gafisa cancelled the offering on July 13, 2009. The funds

were not required to achieve our 2009 objectives.

Sarbanes‐Oxley: we have been certified as “SOX” compliant.

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Gafisa: Business ModelGafisa is a residential homebuilder with product lines divided by income segment and nationalGafisa is a residential homebuilder with product lines divided by income segment and national footprint

ics

Vertical

Metropolitan areas

Custom projects

Horizontal / Vertical

Metropolitan areas and surroundings

Standardized products

Horizontal lot development

Suburban areas

Custom projects

Characteristi

Unit price: > R$200 thousand

Financing: Banks

Unit price: R$50 – R$200 thousand

Financing: Caixa and Banks

Caixa representative

Unit price: R$70 – R$500 thousand

Financing: Direct 

32 t il l ti 8 i l ffi

Price

s

In‐house sales force and brokers32 retail locations, 8 regional offices, in‐house sales force and brokers

In‐house sales force and brokers

46 cities / 18 states 64 cities / 12 states 26 cities / 16 states

Sales

verage

Cov

High  / Middle High  Affordable / Entry Level Residential Communitiesincome

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One of the Most Geographically Diverse Homebuilders

Gafisa brands and geographic presence Contracted sales 1H09

SP43.9%

Other37.1%

RJ19.0%

R$1,394  million

Land bank 2Q09

SP38.6%Other

38.8%

Brands States Cities

RJ22.5%

R$15,994 million18 46

12 64

16 26

Total 20 996

Conservative Approach Towards Launches

2Q09 L h b i i2Q09 L h (R$ illi )

2,730

2Q09 Launches by unit price2Q09 Launches (R$ million)R$ million

(%Gafisa) 2Q09 2Q08

Gafisa ≤ R$500 k 225 454

160

1.483

‐56%1,409

‐71%> R$500 k 127 142Total 352 596

Alphaville > R$100 k; ≤  R$500 k 82 102

596352

0

1.086490

10282

160

104

711

192192

626 787Total 82 102

Tenda 1) ≤ R$130 k 64 572> R$130 k 128 139

T l 192 7110

2Q08 2Q09 1H08 1H09

2Q09 Launches by region

TendaAlphavilleGafisa

Total 192 711

Consolidated Total 626 1,4091) Includes Tenda and Fit Residencial in 2008

2Q09 Launches by region

Other33%

São Paulo55%

33%

7Rio de  Janeiro12%

Strong Pre‐Sales: Significant Inventory Reduction 

2Q09 P l b it i2Q09 P l (R$ illi )

1,432 1,394‐3%

2Q09 Pre‐sales by unit price2Q09 Pre‐sales (R$ million)R$ million

(%Gafisa) 2T09 2T08

Gafisa ≤ R$500 k 225 454

132 114 

367

566620+9%

764835

> R$500 k 127 142Total 352 596

Alphaville > R$100 k; ≤  R$500 k 82 102

372  390

734  660 75  79

317  367 Total 82 102

Tenda 1) ≤ R$130 k 64 572> R$130 k 128 139

T l 192 7112Q08 2Q09 1H08 1H09

2Q09 Pre‐sales by region

TendaAlphavilleGafisa

Total 192 711

Consolidado Total 626 1,4091) Includes Tenda and Fit Residencial in 2008

2Q09 Pre‐sales by region

São PauloOther34%

45%

8Rio de Janeiro21%

Sales Velocity and Inventory 

2Q09 Sales velocity (R$ million)

Inventoriesend of period

Sales Sales speed

Inventory reduction (R$ million)

end of period

Gafisa 1,542  390  20%

Alphaville 203  79  28%‐ 465

‐ 250

3,3942,929

2 679Tenda 934 367  28%

Total 2,679  835  24%

2,679

215 199  203 

1,402 1,149  934 

Inventories

2Q09 Sales per launch year (R$ million)

1,777  1,581  1,542 

4Q08 1Q09 2Q09

TendaAlphavilleGafisa

Inventoriesend of period

Sales Sales speed

2009 Launches 292 216.6  43%

2008 Launches 1,183 274.1 19%

4Q08 1Q09 2Q09

,

2007 Launches 860 249.2  23%

≤ 2006 Launches 344  95.5  22%

Total 2 679 835 4 24%

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Total  2,679  835.4 24%

74% of inventory consists of launched developments not yet started or up to 30% completedor up to 30% completedCompleted units represent only 7% of the total PSV available for sales

R$ 000

Company Not startedUp to 30% constructed

30% to 70% constructed

More than 70% constructed

Completed units

Total

Gafisa 463,651 735,696 338,077 47,520 160,214         1,745,157

Tenda 345,625 428,962 43,977 82,892 32,552 934,007, , , , , ,

Total 809,275 1,164,658 382,054 130,411 192,766 2,679,165

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Diversified, High‐Quality Land Bank Provides Strong Platform for  GrowthGrowth303 different sites, in 21 states

Potential units (%Gafisa)

Potential units (100%)

PSV R$ million (%Gafisa)

% Swap Total

Gafisa 20,060 23,869 7,317 42%

Alphaville 22,008 35,501 3,133 97%

Tenda 61,721 63,028 5,544 15%

Total 103,789 122,397 15,994 73%

73% acquired by swap agreements.

Affordable entry level represents 59% of potential Gafisa units in land bank.

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Financial Performance Duilio Calciolari CFO and IR Officer

Overview of 2Q09 Results 

Financial Performance – Duilio Calciolari, CFO and IR Officer

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2Q09 Financial HighlightsNet Revenues (R$ million) Gross Profit (R$ million)Net Revenues (R$ million) Gross Profit (R$ million)

136 

191 

29.6%27.1%

+41%459

706 +54%

459

dj d1 ( $ illi ) 2 ( $ illi )

2Q08 2Q09

Gross Profit Gross Margin

2Q08 2Q09

Net Revenues

142 

Adjusted1 EBITDA (R$ million)

+69%

Net Income2 (R$ million)

20.1%18.4%

81

11.5%14.0%

+26%

84 

+69%

64

2Q08 2Q09

EBITDA EBITDA Margin2Q08 2Q09

Net Income2 Net Margin

2: Before minority shareholders and stock option expenses1: Adjusted for non‐cash stock option expenses.

132: Before minority shareholders and stock option expenses

EBITDA adjusted to include non‐cash stock option expenses increased 69% over 2Q08 

2Q09 Adjusted EBITDA (R$ thousand) 1H09 Adjusted EBITDA (R$ thousand)

Gafisa Tenda Total

Net profit 43,724  14,044 57,768 

(+) Financial result 13,783  (1,063) 12,720 

Gafisa Total

Net profit 73,698  20,804  94,501 

(+) Financial result 23,543  (1,614) 21,929 

Tenda

(+) Income taxes 16,037  4,584  20,621 

(+) Depreciation and Amortization 2,306  4,093  6,399 

(+) Capitalized interest 16,164  5,152 21,316 

( ) Mi it h h ld 10 244 9 365 19 609

(+) Income taxes 26,378  10,556  36,934 

(+) Depreciation and Amortization 7,652  6,730  14,382 

(+) Capitalized interest 31,840  7,351  39,191 

( ) Mi it h h ld 17 576 13 789 31 364(+) Minority shareholders 10,244  9,365  19,609 

EBITDA 102,258  36,175  138,434 

(+) Stock option plan expenses 1,235  2,515  3,750 

Adjusted EBITDA 103 493 38 690 142 184

(+) Minority shareholders 17,576  13,789  31,364 

EBITDA 180,687  57,615  238,302 

(+) Stock option plan expenses 7,782  4,531  12,313 

Adjusted EBITDA 188 469 62 146 250 616Adjusted EBITDA 103,493  38,690  142,184 

Net revenues 444,390  261,428  705,818 

Adjusted EBITDA margin 23.3% 14.8% 20.1%

Adjusted EBITDA 188,469  62,146  250,616 

Net revenues 776,604  471,101  1,247,705 

Adjusted EBITDA margin 24.3% 13.2% 20.1%

Note: Gafisa's EBITDA includes negative goodwill amortization (net of provisions) from deal with Tenda

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SG&A

T d ’ lid ti ll k ti d l ff t i t d SG&A ti‐ Tenda’s consolidation as well as marketing and sales efforts impacted SG&A ratios ‐ We expect ratios to improve as strong performance at Gafisa will be complemented by top 

line growth in Tenda

2Q09 Gafisa Tenda Total 1Q09 Gafisa Tenda Total

Selling Expenses (R$ 000) 23,679  27,502  51,182 

G&A Expenses (R$ 000) 38,978  20,334  59,312 

SG&A Expenses (R $000) 62 657 47 836 110 493

Selling Expenses (R$ 000) 23,066 23,540 46,607

G&A Expenses (R$ 000) 28,853 27,065 55,918

SG&A Expenses (R $000) 51 919 50 606 102 525SG&A Expenses (R $000) 62,657  47,836  110,493 

Selling Expenses / Sales 5.1% 7.5% 6.1%

G&A Expenses / Sales 8.3% 5.5% 7.1%

SG&A Expenses (R $000) 51,919 50,606 102,525

Selling Expenses / Sales 7.5% 9.3% 8.3%

G&A Expenses / Sales 9.4% 10.7% 10.0%

SG&A / Sales 13.4% 13.0% 13.2%

Selling Expenses / Revenues 5.3% 10.5% 7.3%

SG&A / Sales 17.0% 20.0% 18.3%

Selling Expenses / Revenues 6.9% 11.2% 8.6%

/G&A Expenses / Revenues 8.8% 7.8% 8.4%

SG&A / Revenues 14.1% 18.3% 15.7%

G&A Expenses / Revenues 8.7% 12.9% 10.3%

SG&A / Revenues 15.6% 24.1% 18.9%

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Strong Pre‐Sales Positively Impact Backlog of Revenues to be RecognizedRecognizedR$1.1 billion of results to be recognized (68.6% growth compared to 2Q08)

R$ illi )R$ million) 2Q09 2Q08 1Q09 2Q09 x 2Q08 2Q09 x 1Q09

Gafisa Revenues to be recognized 1,905  1,700  1,844  12.1% 3.3%

Costs to be recognized (1,199) (1,085) (1,197) 10.6% 0.2%

Results to be recognized (REF) 706 616 647 14.7% 9.0%Results to be recognized (REF) 706  616  647  14.7% 9.0%

REF margin 37.0% 36.2% 35.1% 111 bps 195 bps

Tenda 1) Revenues to be recognized 1,187  157  1,057  656.0% 12.3%

Costs to be recognized (768) (105) (701) 628 5% 9 6%Costs to be recognized (768) (105) (701) 628.5% 9.6%

Results to be recognized (REF) 419  52  356  712.4% 17.8%

REF margin 35.3% 32.8% 33.7% ‐82 bps 163 bps

Consolidated Revenues to be recognized 3,092  1,857  2,901  66.5% 6.6%

Costs to be recognized (1,968) (1,190) (1,898) 65.4% 3.7%

Results to be recognized (REF) 1,125  667  1,003  68.6% 12.1%

REF margin 36.4% 35.9% 34.6% 135 bps 180 bps

Note: Revenues to be recognized are net from PIS/Cofins (3.65%).  Backlog of Revenues not adjusted to present value.

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1) Includes Fit Residencial in 2008

Strong Financial Position: consolidated cash position of R$1.1 billion

80% of Gafisa’s construction has financing lines in place

Cash‐burn rate substantially lower than R$360 million in 4Q08

(R$ million) 2Q09 1Q09

Total Debt 2,242  1,563 

y $

Total Cash 1,056  501 

Obligation to Investors  300  300 

Net Debt & Obligation to Investors   1,486  1,362 

(Net Debt & Obligation to Investors) / (Equity + Minorities) 65.6% 61.9%

Cash‐burn rate 111 115

R$ million TotalUntil 

June/2010Until 

June/2011Until 

June/2012Until 

June/2013After 

June/2013

Total Debt – Gafisa and Alphaville 1,486 408 566 319 164 29

Total Debt ‐ Tenda 1) 757 93 42 169 152 300

Total Consolidated Debt 2,243 501 608 488 317 329

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Gafisa is the most liquid Brazilian real estate company and the only one listed on NYSEone listed on NYSE

25210

Daily Volume (R$ MM) Price (GFSA3)

15

20

120

150

180

5

10

30

60

90

00

Gafisa’s average daily trading volume: R$78.5 million (Jul 1st, 2008 – Jul 31th, 2009)

Average Daily Turnover in the last 90 days over free float: 2.4%

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Outlook for 2009We maintain our outlook for 2009 and reaffirm the full year guidance for salesWe maintain our outlook for 2009 and reaffirm the full‐year guidance for sales and EBITDA margin

‐ Consolidated Sales: between R$2.7 billion to R$3.2 billion

‐ Gafisa: 1.0 billion ‐1.2 billion

‐ Tenda: 1.4 billion ‐ 1.6 billion

‐ Alphaville: 300 million ‐ 400 million

‐ Consolidated EBITDA Margin: between 16% to 17%

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Safe‐Harbor Statement 

We make forward‐looking statements that are subject to risks and uncertainties. These statementsare based on the beliefs and assumptions of our management, and on information currently availableto us. Forward‐looking statements include statements regarding our intent, belief or currentexpectations or that of our directors or executive officersexpectations or that of our directors or executive officers.

Forward‐looking statements also include information concerning our possible or assumed futureresults of operations, as well as statements preceded by, followed by, or that include the words''believes '' ''may '' ''will '' ''continues '' ''expects '‘ ''anticipates '' ''intends '' ''plans '' ''estimates'' or''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' orsimilar expressions. Forward‐looking statements are not guarantees of performance. They involverisks, uncertainties and assumptions because they relate to future events and therefore depend oncircumstances that may or may not occur. Our future results and shareholder values may differmaterially from those expressed in or suggested by these forward‐looking statements. Many of thematerially from those expressed in or suggested by these forward looking statements. Many of thefactors that will determine these results and values are beyond our ability to control or predict.

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