Conference Call 3Q09 CCDI

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%


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%


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)


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

(%)


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

(%)


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

(%)


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

[email protected]

Conference Call 3Q09 CCDI

Documents

Transcript of Conference Call 3Q09 CCDI