IV Brazil Construction & Mortgage Field Trip_CCDI

IV Brazil Construction & Mortgage Field Trip

August/09

AGENDA

• WHO WE ARE– GRUPO CAMARGO CORREA– OWNERSHIP STRUCTURE

• WHAT WE DO– RESIDENTIAL

• LOW INCOME• OTHER INCOME – “TRADITIONAL”

– COMMERCIAL– CAIEIRAS

• WHERE WE DO• HOW WE DO

– STRATEGY– CAPITAL DISCIPLINE

• RESULTS

WHO WE ARE

CAMARGO CORRÊA DESENVOLVIMENTO IMOBILIÁRIO

Part of GRUPO CAMARGO CORRÊA, CCDI

develops RESIDENTIAL and COMMERCIAL real

estate on MAJOR BRAZILIAN MARKETS, with

DEFINED STRATEGY and STRICT CAPITAL

DISCIPLINE.44






DISCIPLINE.55

GRUPO CAMARGO CORRÊA

GRUPO CAMARGO CORRÊAPublicly-traded

Companies

88

GRUPO CAMARGO CORRÊA

- 70-year track record

- National and International Presence:- 54,400 employees in Brazil, the Americas, Africa and Europe

- Financial Soundness:- Some numbers for Dec. 31, 2008:

- Gross Revenues: R$15.4 Billion (+23.8% over 2007)

- Total Investments: R$1.8 Billion

- Result-oriented Culture, with Corporate Governance:- Net Income, Consolidated: R$1.0 Billion

- CSC - Shared cost center to service all the Group’s companies with back office activities on a “pay-per-use” basis

- Integrated systems and infrastructure – SAP fully implemented

- Footprint throughout Brazil

- Strong brand name recollection

99

OWNERSHIP STRUCTURE


Free Free FloatFloat

SPEsSPEs

100%66%

34%

1111

WHAT WE DO

SEGMENTS WE OPERATE IN

Residential -Traditional

Leisure

Built-to-SuitIndustrial

Commercial - Retail

Residential – Low

IncomeCommercial – Offices

FOCUS SEGMENTS

Commercial –Offices

Residential -Traditional

Residential –Low Income

1313






DISCIPLINE.1414

RESIDENTIALRESIDENTIAL

Passeio de Itanhatim Araucária Cond. ClubeForte do Golf

RESIDENTIAL REAL ESTATE – BUSINESS MODELS

• Units < R$120,000• Fully integrated activities

(development, construction and sales)

• Shorter development cycle• SP (country-side)

• Units > R$120,000• Pure developer (construction is

outsourced)• Third-party sales force• Longer operational cycle• SP, RJ, MG, PR, ES

1616

HM ENGENHARIA HM ENGENHARIA LOW INCOME SEGMENTLOW INCOME SEGMENT

Bela Vista CasasBrisa da Mata Parque Campinas

HM ENGENHARIA – LOW INCOME SEGMENT

LOW INCOME PREREQUISITES HM ENGENHARIA’S ABILITIES

ScaleOver 130,000 units built and developed on 30+ years of experience in the Low Income Segment

Integrated Business Model HM develops, builds and sells

Price SensitivenessHM’s average price per unit is under R$80,000

Focus on Cost-Effectiveness Gross Margins on the upper 20% range

Product Standardization Standardized Products with “HM” quality

Good Relationship with CEF Largest operator of “PAR” projects

1818


30,0

98,7

18,8

65,4

86,3

0,0

101,4

2,68,6

25,8

37,532,2 32,0

82,4

4Q07 1Q08 2Q08 3Q08 4Q08 1T09 2T09

LAUNCHINGS (R$MM) SALES (R$MM)

CCDI acquisition

of 51%

CCDI acquisition

of 26%

CCDI expands stake to

81%

Acquisition of the

remaining 19%

Minha Casa,

Minha Vida

1919

� Houses

� Apartments


2020

Quinta das Laranjeiras Bela Vista Casas Parque Cosmópolis

Praças de Sumaré Araucária Condomínio Clube Bela Vista Varandas

� LAUNCHINGS FOR “MINHA CASA, MINHA VIDA”

� Parque Cosmópolis

� Working Capital financing through Housing Program - first such contract signed in Brazil by CEF

� 2Q09 Launchings:

2121

� Location: Campinas

� Nº of units: 784

� Total PSV: R$ 56,2 million

� Total land area: 246,600 m²

� Units size: 41 m²

� Location: Campinas

� Nº of units: 519

� Total PSV: R$ 42,2 million

� Total land area: 82,188 m²

� Units size: 49 m² and 64 m²


CCDI CCDI OTHER SEGMENTSOTHER SEGMENTS

Vista PacaembuInterclube Cores Jardim Sul Acqua Clube BH

TRADITIONAL REAL ESTATE RATIONALE

HIGH INCOME DEVELOPMENT CCDI’S SKILLS

State of art development Focus on customers

Different concepts and technology Different segments, different products

“Pure Developer”CCDI Hires construction companies at “Maximum Guaranteed Prices”

Opportunistic ApproachCCDI teams up with specialized partners forlocal knowledge and sales networking

Sustainability ConcernsRe-urbanization of large areas cutting edge sustainability concepts

Brand Name“Camargo Corrêa” is recognized throughout Brazil for execution capability and financial soundness 2323

ECONOMIC SEGMENT (UNITS FROM R$100K TO R$ 200K)

Project Innova

Location Osasco, SP

Launched Dec, 07

Total units 2,535

% sold as of June 30, 2009 94%

Project Cores Jardim Sul

Location Jardim Sul - São Paulo, SP

Launched May, 08

Total units 602


Project Interclube

Location Interlagos – São Paulo, SP

Launched Jan, 08

Total units 876


2424

MEDIUM SEGMENT (UNITS FROM R$200K TO R$350K)

Project Eco’s Natureza Clube

Location Taboão da Serra, SP

Launched Dec, 07

Total units 569


Project Admira Icaraí

Location Niterói, RJ

Launched Sep, 08

Total units 318


Project Aqua Clube Residencial

Location Belo Horizonte, MG

Launched Sep, 08

Total units 384


2525

MID-HIGH SEGMENT (UNITS FROM R$350K TO R$500K)

Project Fotografia


Launched Jun, 07

Total units 108


Project Passarim


Launched Dec, 06

Total units 108


Project Passeio de Itanhatim


Launched Feb, 06

Total units 80


2626

HIGHER SEGMENTS (UNITS FROM R$500K)

Project ID Jardim Sul


Launched Mar, 08

Total units 46


Project Vista Pacaembu

Location Pacaembu - São Paulo, SP

Launched Apr, 08

Total units 31


Project Jardins de Vila Rica

Location Santos, SP

Launched Nov, 07

Total units 44


2727






DISCIPLINE.2828

CCDI CCDI COMMERCIAL REAL ESTATECOMMERCIAL REAL ESTATE

Paulista (São Paulo)Ventura (Rio de Janeiro) Vila Olímpia (São Paulo)

Launching: June/07

Estimated PSV: R$480.0 million

CCDI stake: 50%

Construction: started

Under negotiation for sale

3030

PAULISTA

3131

Shopping Center yards from Subway Station(Green Line – Paulista; Trianon-Masp Station)

Land : 12,500 m²

Construction Potential: ~50,000 m²

Project: Mixed-Use: Shopping + AAA Office

CCDI stake: 50%

PSV (100%): R$450 MM

VIOL

3232

Location: Vila Olimpia, Sao Paulo

PSV: R$1.0 billion (CCDI stake)

Land Bank: ~40,000 m²

Construction Potential: ~132,000 m²

Project under design/approval stages

SMALL OFFICES

Project in the Faria Lima region

Sold out

99 units

Project in Jardim Sul Region

Sold out

260 units

3333

CAIEIRASCAIEIRAS

São Paulo

Caieiras

CPTM Station: “A” LineApproximately 45 minutes to “Luz” Station

� 5,207,600 m² (1.3 thousand acres) land located in Caieiras. São Paulo Metropolitan Region.� 19 km (11.8 miles) from downtown São Paulo

� Ample, easy, fast access (CPTM “A”-line train and major highways)

� Potential Sales Volume: from R$ 2.5 billion to R$ 3.0 billion� Residential e commercial (support)

� 20,000 units

� Economy segment (units between R$ 70 thousand and R$ 200 thousand each)

� Acquisition terms:

� R$ 28 million in cash

� Balance in financial swaps

CAIEIRAS






DISCIPLINE.3636

WHERE WE DO


Geographical focus for enhanced efficiency

São José do Rio Preto BarretosRibeirão PretoFranca

CampinasSumaréCosmópolisHortolândia

São Paulo

Total Land BankTotal Land BankR$1.0BNR$1.0BN

Projects within a few miles fromheadquarters or regional offices

=Improved

• Operations Tracking• Control• Logistics

3838

CCDI – OTHER SEGMENTSOperations focused on States that combine for 65%* of Brazilian GDP

* Source – IBGE (2006) ** Does not Include HM’s Land Bank

São Paulo 53,2%

RMSP 36,3%

São Paulo Shoreline

0,7%

Rio de Janeiro 1,6% Other States

8,30%

2Q09 LAND BANKBy Location

Total Land BankTotal Land BankR$9.0BN**R$9.0BN**

3939






DISCIPLINE.4040

HOW WE DO

STRATEGY

STRATEGY

• Be among the leaders where we operate

• Rely on Camargo Corrêa’s backing for scalability and networking

• Separate organizational structures for more focus on segments we operate (low income, traditional residential and commercial – AAA)

• Grow consistently, without jeopardizing the Company’s financial structure

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DISCIPLINE.4444

CAPITAL DISCIPLINE

Capital Discipline

4646

Land Acquisition Through Swaps� Lower Capital Exposure per project� Lower Carrying costs; Project risks mitigated

Construction Financing� Leverage by project at competitive costs� Lower capital needs per project

Receivable Transfers� Transfer: 100% of the project account receivables at face value (zero discount)� No consumer risk after the delivery of keys

Acquisition of Lands in Swap

Construction Financing

Receivables Transfer

CONTACT INFORMATION

Leonardo de Paiva Rocha

CFO and IRO

Fernando Bergamin

Investors Relations

Tel: (55 11) 3841-5880

[email protected]

Access our webpage

www.ccdi.com.br/ri

IV Brazil Construction & Mortgage Field Trip_CCDI

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