Jp Morgan Presentation ENG ONLY

52
CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007 1 INSTITUTIONAL PRESENTATION SEPTEMBER, 2007

Transcript of Jp Morgan Presentation ENG ONLY

Page 1: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

1

INSTITUTIONAL PRESENTATION

SEPTEMBER, 2007

Page 2: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

2

COMPANY OVERVIEW

Page 3: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

3

Company Overview

65.5% 34.5%

• IPO: January 31, 2007• Volume : R$ 522 million• Proceedings, Net : R$ 454 million• Selling shareholder : Itautec (8%)

FREE FLOAT49.5%

41.7%

8.8%

IPO

50.7%

42.1%

7.1%

SEPT 10, 2007

Brazilian

International

Retail

SpecialPurpose

Companies

51.0%

• Market cap (Sept 10, 2007): R$ 1.49 billion

• Novo mercado– One share, one vote

– Full tag-along rights

– Corporate Governance

Page 4: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

4

Company Overview - Summary

• Real Estate arm of one of the largest industrial conglomerates in Brazil

• Develops residential properties for all market segments and prime commercial properties

• One of the largest land banks among Brazilian developers

• All projects with excellent sales ratio

• Aggressive growth , becoming one of the largest players in São Paulo in four years of operations

Page 5: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

5

Company Overview

500

453

211

5590

700

1996 2003 2004 2005 2006

1,200

2007(E)

-39%

+115%

+165%

+284%

CCDI is founded as the Real Estate manager of

the properties of Camargo Corrêa

CCDI starts operations as real estate developer

CCDI acquires stake in property in

Rio de JaneiroIPO

VGV Launched (R$ million)

1H07

2H07(E)

Page 6: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

6

Main Projects – Jardim Sul

MarginalPinheiros

Page 7: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

7

Main Projects – Jardim Sul

• 6 Projects launched (from 2003 to 2007)

• Total units : 656

• VGV: R$ 326.2 million

• Units Sold : 426 (65%)*

• 1 Project to be launched on 2nd Half of 2007: Empresarial Jardim Sul– Small Offices– VGV: R$ 60MM

– Units: 81

* 150 units launched in June of 2007

Page 8: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

8

Main Projects – Arquitetura de Morar

Shopping Jardim Sul

Av. Giovanni Gronchi

Page 9: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

9

Main Projects – Arquitetura de Morar

• 5 Projects launched (3 in Dec 2006 and 2 in Jun 2007)

• Total units : 508

• VGV: R$ 232.2 million

• Units Sold : 253 (49.8%)*

• Bolder project, with urban concept– Un-gated community– New ecological road pavements

– Landscaping and sidewalks– Delivered squares with green areas and usable leisure spaces– Project inspired by and paying tribute to the life and craft of Brazilian

maestro Tom Jobim

* 188 units launched in June of 2007

Page 10: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

10

Main ProjectsVentura Corporate Towers• Partnership with Tishman Speyer (50%/50%)

• Launchings: June, 2006 (phase 1) and June, 2007 (phase 2)

• Location: Rio de Janeiro, RJ

• Potential sales: R$ 386MM (100% CCDI) – R$ 772MM (total project)

• Innovative commercial development in downtown Rio de Janeiro

• LEED® Certified Green Building

Santos Dumont Airport

Ventura Corporate Towers

Page 11: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

11

Main Projects

• Launchings: 2 phases (Cyprae in Nov06 and Cassis in Feb07)• Total units : 131

• VGV: R$ 117.5MM• Units sold : 95 (72.5%)• 3rd Phase due in 2008

Page 12: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

12

Main ProjectsSão Francisco

Golf ClubOsasco (RMSP)

Forte do Golf• Total units : 294

• VGV: R$ 141.1MM• Units sold : 276 (93.9%)• Launched : May, 2005

Viveiro Marília Vogt• Total units : 40

• VGV: R$ 29.1MM• Units sold : 18 (45.0%)• Launched : May, 2007

Page 13: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

13

Main ProjectsMarginalPinheiros

Central Park• Total units : 99

• VGV: R$ 19.4MM (100% CCDI)• Units sold : 81 (81.9%)• Launched : Dec, 2005

Porto Pinheiros• Total units : 75

• VGV: R$ 57.3MM • Units sold : 70 (93.3%)• Launched : May, 2006

Av. Brig. FariaLima

Page 14: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

14

REAL ESTATE IN BRAZIL

Page 15: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

15

Real Estate Sector Attractiveness

• Declining Interest Rates and Larger Maturities Fuel Demand

• For the same unit price, monthly installment is down 36%

Household Income Required: 4x2005: ~R$5,800 (15.3 minimum wages)Today: ~R$3,700 (9.7 minimum wages)

INCREASED AFFORDABILITY IS KEY

Price of Unit : ~R$ 120,000Loan to Value : 80%Amount Financed : R$ 90,000TR:~2% per year

INTEREST (TR PLUS) 120 180 240 300 36013% R$ 1,452.01 R$ 1,259.63 R$ 1,185.11 R$ 1,152.75 R$ 1,138.0012% R$ 1,397.40 R$ 1,198.57 R$ 1,119.17 R$ 1,083.38 R$ 1,066.3811% R$ 1,343.80 R$ 1,138.72 R$ 1,054.42 R$ 1,015.05 R$ 995.5810% R$ 1,291.24 R$ 1,080.15 R$ 990.98 R$ 947.90 R$ 925.75

9% R$ 1,239.75 R$ 1,022.94 R$ 928.97 R$ 882.10 R$ 857.098% R$ 1,189.36 R$ 967.14 R$ 868.52 R$ 817.83 R$ 789.81

MONTHS

2005 Today

Page 16: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

16

Real Estate Sector Attractiveness

Housing Deficit Households Monthly Household Income Required

8%

4%

n.a.

>80%

8.7

3.7

1.7

12.5

16.5

7.0

3.3

35.0

MM %

1,900

3,800

7,600

1,200

5

10

20

3.2

R$ Min. Wages

0.7

0.2

n.a

3.3

MM %

>90% 25.0 38.2 >1,200 >3.23.8

• Housing Deficit and Living Upgradescreate conditions for huge demand expansion

New Affordability

Cycle

Page 17: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

17

KEY VALUE DRIVERS

Page 18: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

18

Value Drivers

STRONG

WELL-RECOGNIZED

BRAND

LAND BANK

MANAGEMENT

TEAM

DIFFERENTIATED

BUSINESS

MODEL

COMFORTABLE

CASH

POSITION

STRONG GROUP

SPONSORSHIP

Page 19: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

19

Strong Group Sponsorship

4.4%4.4%

1. 6%1. 6%

14.9%14.9%

38.5%38.5%

99.3%99.3%

100.0%100.0%

17.9%17.9%

58.9%58.9%

5.8%5.8%

Main BusinessesMain Businesses

Steel

Energy Generation & Distribuition

Highway Concession

Shoes & Sportwear

Denim (Jeans)

Financial Institutional Holding

Aluminum

Cement

Civil Works

Private-Held Companies

Premier Listed Companies

65.5%65.5% Real Estate Development

• 67 years of operations

• Leadership role in several industries

• National and international presence

• Corporate Governance

• Financial soundness

• Results-oriented culture

• Capital discipline

• 67 years of operations

• Leadership role in several industries

• National and international presence

• Corporate Governance

• Financial soundness

• Results-oriented culture

• Capital discipline

Page 20: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

20

Our Brand, Our Asset

• First Company to go public bearing the “Camargo Corrêa” brand name

• Brand recognition nationally and internationally (Latin America, Africa, Europe)

• Main Attributes :– Trustworthiness– Professionalism– Credibility– Efficiency– Financial Soundness

• Extensive Research: Top 3 in purchase intention on all tested markets

• Extensive construction and complex project-related background

Page 21: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

21

Management Team

• Camargo Corrêa facilitates access to human capital

• Key personnel acquired from top tier companies–Young battle-tested team with over 400 projects on fold

• Business focus - scalability– Shared service center serving over 40,000 employee-base– Located in the country-side of São Paulo (lower fixed costs)

– Costs decreasing on a per-task basis– SAP® in place from day one

• Incentives– Stock option plan under implementation– Bonus program based on financial and operational performance

Page 22: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

22

Land Bank

• Extensive, valuable Land Bank

– VGV: R$ 6.9 billion (100% CCDI)

– Total area: 6.4 million square meters

• Geographical, segment diversification

– 120 plots in São Paulo, Rio de Janeiro, Ribeirão Preto, Belo Horizonte

• Duration: minimum of 3 years of launchings

• Approximately 87% acquired through swaps , especially

financial

• Negotiations for new acquisitions underway

Page 23: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

23

Land Bank

0.9

0.2

0.1

3.6

SP (Country and

Shore)

RMSP Belo Horizonte

4.5

1.6

Rio de Janeiro

0.2 0.3

HM

1.8

VGV*

* All Figures in R$ million, 100% CCDI

Residential

Commercial

Lots

Low Income

5,430

900

200

340

TOTAL 6,870

78.4%

13.5%

3.0%

5.1%

Type VGV* %

Page 24: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

24

Land Bank

5.1

IPO

0.5

1H07 Launchings

0.3

1.9

2.2

Land Acquisition

6.9

Land Bank

VGV*

* All Figures in R$ billion, 100% CCDI

• 11 new plots - 3,900,000 m²

• R$ 1.9 billion in VGV

• 84% in swaps

• New cities– Belo Horizonte, Santos

Guarujá, Taboão da Serra, Ribeirão Preto

• 11 new plots - 3,900,000 m²

• R$ 1.9 billion in VGV

• 84% in swaps

• New cities– Belo Horizonte, Santos

Guarujá, Taboão da Serra, Ribeirão Preto

• 30 new plots – 2,000,000 m²

• R$ 0.34 billion in VGV

• Country Side of São Paulo– Campinas, Sumaré, São

José do Rio Preto, RibeirãoPreto, Jaguariúna, …

• 30 new plots – 2,000,000 m²

• R$ 0.34 billion in VGV

• Country Side of São Paulo– Campinas, Sumaré, São

José do Rio Preto, RibeirãoPreto, Jaguariúna, …

Page 25: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

25

Land Bank

• No specific region and/or segment exposure in São Paulo (lands spread over 350 km²)

23 Km

15 Km

Page 26: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

26

Land Bank

0.3

Under 100

0.9

100 to 200

1.3

200 to 350

1.9

350 to 500

0.8

500 to 1,000

0.7

Over 1,000

VGV* - Residential Projects

* All Figures in R$ billion, 100% CCDIR$ 000 per unit

37% within the SFH Limit

5% 15% 22% 32% 14% 12%

Page 27: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

27

Land Bank HighlightsLagoa

Marapendi

Barra (RJ)450 m

Santos

LOTE 27/RJ

São Vicente

BaixadaSantista

Itaguaré

Península de São Lourenço

Bertioga

Page 28: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

28

Land Bank Highlights

Marginal Pinheiros

Parque Burle Marx

Panamby

Marginal Tietê

Parque do Piqueri

Tatuapé

Page 29: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

29

Land Bank Highlights

Shopping Jardim Sul

1.5 km²

Jardim Sul

Page 30: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

30

Land Bank Highlights

MASP

Avenida Paulista

Paulista

Page 31: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

31

Land Bank Highlights

Vila Olímpia

Av. JuscelinoKubitschek

Av. Faria Lima

Marginal Pinheiros

New Shopping Center by Iguatemi

Page 32: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

32

Expected Launchings

• Forecasted VGV based on:– “In-house” land bank– Actual sales price– No monetary readjustments for

units installments

1,2

2007

1,8

2,0

2008

1,5

1,7

2009

1,9

2010 +

* All Figures in R$ billion, 100% CCDI

Potential Land Acquisitions

• Forecasted launchings in planning:– Permits and approvals– Product designing and researching

VGV*

Page 33: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

33

Business Model

Units up to R$ 100,000 Units over R$ 100,000

Residential (Horizontal and Vertical) and Lots

Residential, Commercial, Lots

Own Selling Structure Third-Party Brokers

Construction and Consumer Financing from Launching

Construction and Consumer Financing after Keys

18 to 24-month Cycle 36-month Cycle

Own Construction Structure Third-Party Construction

What

Where

Construction

Sales

Funding

Returns

Acquisition of Land in Cash/Swaps

Acquisition of Land in SwapsAcquisitions

Page 34: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

34

Comfortable Cash Position

(42.5)ACCOUNTS PAYABLE (LAND) – LONG

(28.5)DEBT - LONG

319.8NET CASH POSITION

19.3CASH POSITION PRE – IPO

454.0IPO PROCEEDINGS, NET

(12.4)DEBT – SHORT

390.8CASH POSITION POST – IPO

(54.9)CASH INFLOW (OUTFLOW) – 1H07

(15.2)ACCOUNTS PAYABLE (LAND) – SHORT

R$ million

2007 2008 2009 2010

R$ million

IPO Proceedings

80% Working Capital

20% Land Acquisition

Cash Position

Enough to finance growth

Model: Leverage and Swap

Page 35: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

35

NUMBERS

Page 36: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

36

Launchings

453

500

71

2006 Total Cassis

29

Viveiro Marilia Vogt

58

Aguas de Março

44

Ventura Corp.

Towers(Phase 2)

+10%

Cristais da Terra

200

Total

97

Fotografia

VGV*

* All Figures in R$ million, 100% CCDI

Page 37: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

37

Contracted Sales

170

87

171

2006 Total 1Q07

83

2Q07

-1%

Total

* All Figures in R$ million, 100% CCDI

Page 38: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

38

Units for Sale

441

187

414

488

693

1Q07

162

Launchings

18

2Q07Sales

Units under construction

Pre-construction stage

Ready Units

Page 39: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

39

Financials

49.5

1H06

85.6

1H07

+73%

20.4

10.1

1H06 1H07

+102%

Net Operating Revenues* Gross Income*

* All Figures in R$ million

Page 40: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

40

Financials

22.4

19.8

25.6

1Q072Q06 2Q07

5.8 p.p.

Gross Margin (%) Addressing the Margin

CCDI Other

100 100Sales

15 0Land

50 50Construction

35 35Gross Income

100 85Revenues

35% 41%Gross Margin

6 p.p.

Page 41: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

41

Financials

+43%

192.1

2Q06

274.7

2Q07

204.6

Costs 147.7

Results 44.4

70.1

Revenues to be Recognized*

* All Figures in R$ million

23.0

2Q06

25.5

2Q07

2.5 p.p.

Backlog Margin (%)

Page 42: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

42

Financials

2.82.7

2Q06 2Q07

+3%

Net Income*

* All Figures in R$ million

-0.8

4.0

1H06 1H07

-120%

EBITDA*

• Recognition of R$27.2MM in IPO-related expenses in the Fist Half of 2007• SG&A growth due to forecasted increased operations for the next periods

Page 43: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

43

STRONG

WELL-RECOGNIZED

BRAND

LAND BANK

MANAGEMENT

TEAM

DIFFERENTIATED

BUSINESS

MODEL

COMFORTABLE

CASH

POSITION

STRONG GROUP

SPONSORSHIP

Page 44: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

44

• This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of CCDI and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.

• Although CCDI believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to CCDI’s management, CCDI cannot guarantee future results or events. CCDI expressly disclaims a duty to update any of the forward-looking statements.

Page 45: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

45

CONTACT INFORMATION

ROBERTO PERRONI – CEOPAULO ROBERTO MAZZALI – CFO, IROFERNANDO BERGAMIN – INVESTOR RELATIONS

RUA FUNCHAL 160 – 9 ANDAR – 04551-903 – SÃO PAULO – BRAZILTEL: 5511-3841-5880/FAX: 5511-3841-5761EMAILS: [email protected] / [email protected]: www.camargocorrea-ccdi.com.br/ri

Page 46: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

46

LOW INCOME OPERATIONS

Page 47: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

47

HM Engenharia e Construções Acquisition

• The Rationale– Starting operations in the Lower Income segment with scale

– Speed up the acquisition of know-how– Be a first-mover to a huge potential market– Use the most adequate business model for the segment

• The Chosen Way– Acquisition of HM Engenharia e Construções

• The Reasons for HM– Vast, proven track-record– Unique building technology

– Consolidated Land Bank– Strong partnership in place with Caixa Econômica Federal and other

financial institutions– Focus on the country-side of São Paulo (among the richest in Brazil)

Page 48: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

48

HM Engenharia e Construções Acquisition

• The Deal– R$ 2.5 million paid to HM’s Shareholders– R$ 48.1 million capitalized in the company– R$ 8.1 million to be paid for HM’s Shareholders (as of March, 2007) as

dividends– R$ 40.0 million for working capital and land acquisition– Total Company valuation: R$ 60 million

• The Option– CCDI has an option to acquire another 30% of HM early in 2009 (thus

CCDI will potentially hold 81% of the Company)– Strike price: same share price of acquisition, with adjustments (higher or

lower) depending on operational (launchings) and financial (net margin) indicators

• The Operations– HM’s Shareholders are shareholders of the new Company

(proportionally)– CCDI will indicate CFO, Chief Operations Officer– HM will adopt CCDI’s Corporate Governance and Reporting Practices

Page 49: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

49

Meet HM Engenharia e Construções

AraçatubaSão José do Rio PretoVotuporangaCatanduva

BarretosRibeirão PretoFrancaCatanduva

CampinasSorocabaJundiaíPiracicaba

BauruMariliaBotucatuAssisSão Carlos

São Paulo

Page 50: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

50

Meet HM Engenharia e Construções

75,144

Low Income

11,543

86,687

TotalEconomic(R$100k-200k)

Units Built Units from R$ 40,000 up to R$ 100,000

Residential (Horizontal and Vertical) and Lots

Own Selling Structure

Own Construction Structure

State of São Paulo

2007YTD Launchings: R$ 20MM

2006 N.O. Revenues: R$ 65MM2006 Net Income: R$ 9MM

Page 51: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

51

Meet HM Engenharia e Construções

Page 52: Jp Morgan Presentation ENG ONLY

CCDI – JP MORGAN ASIA PACIFIC CONFERENCES – SEPTEMBER 2007

52

Meet HM Engenharia e Construções