2. 2
D Disclaimer
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summarized and does not purport to be complete. This presentation shall not be considered an advice of investment by potential investors. This presentation is strictly confidential
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and Exchange Act of 1934. Such forward-looking statements and information are only predictions and cannot assure Rossi’s future performance. Investors have been cautioned
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result of such risks and uncertainties, the actual results of Rossi and its subsidiaries may be materially different from any future result expressed or implied in the forward-looking
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Disclaimer
5. 5
One of leading players in the real estate industry with over 30 years of experience
Income segment diversification with strong low income expertise
Strong geographical distribution, through regional offices strategically located
SAP technology implemented since 1999 enabling full control and support for growth
Proven track record using large scale construction technologies
Experienced and professionalized management team with sound industry knowledge
Rossi is uniquely positioned to capture growth opportunities driven by favorable
macroeconomic conditions and government program “Minha Casa, Minha Vida”
Brief overview
Villa Flora Praças Residenciais Rossi Ideal High Income Seg.
6. 6
Rossi Expertise and Competitive Advantages
History
1980 1992 1993 1996 1997 1999 2000/03 2006 2007 2008 2009
Founding
of Rossi
Campinas
regional
office
IPO on
Bovespa and
ADR L1
Pioneer in
securitization
of real estate
receivables
Launch of
high-end
products
Rio de
Janeiro
regional
office
Acquisition of
America
Properties
Adhesion to
Bovespa
Level I
Creation of in-
house sales
team (Rossi
Vendas)
Launch of
Praças
Residenciais
(5,600 units
under
construction)
Launch of
Rossi Ideal
FGV’s
Corporate
Excellence
award
Primary
public
offering of
74,250
million shares
Launch of
Plano 100
(14,000
units
delivered)
Launch of
Vida
Nova
(6,000
units
delivered)
Launch of
Villa Flora
(3,500
units
delivered)
Porto Alegre
regional
office
Re-IPO
Equity
offering
(R$1billion)
Migration to
Bovespa
“Novo
Mercado”
level
Belo
Horizonte
regional
office
Shares
included in
Bovespa
Index
Rossi adopts
new brand
identity
Prix
D’Excellence
award by
Fiabci – best
low income
concept
We have delivered over 30,000 units in the low income segment
7. 7
PSV (R$ million)
396
2,723
2005 2008
Sales (R$ million)
445
2,176
2005 2008
Units Launched
1,999
10,542
2005 2008
Main indicatorsComment
What has been done since last equity offering in 2006
Status
CAGR 2005 – 2008
- PSV: 90% (total growth 587%)
- Sales: 70% (total growth 389%)
- Units launched: 74% (total growth 427%)
Winner of FGV’s Corporate Excellence Award in 2009 (company that
stepped up the largest number of ranking positions among 500 largest
Brazilian companies )
Presence grew from 15 cities and 3 states to 63 cities and 15 states
6 regional offices strategically located
High quality and well diversified land bank
Management team fully professionalized
Independent Fiscal Council
Ranked # 1 in Corporate Governance among 500 best companies by
Isto É Dinheiro magazine in 2008
EBITDA margin grew 9.3 p.b. (from 2006 to 2Q09)
One of the lowest cash burns in the industry
Able to achieve excellent results with a very healthy and flexible
capital structure
High growth
Geographic and
product
diversification
Corporate
governance
Strong financial
performance
P
P
P
P
Cities
15
60
2005 2008
9. 9
Favorable macroeconomic conditions
Interest rates (Selic average of period)
and inflation Consumer Confidence Index
Despite international crisis, macroeconomy in Brazil shows strong recovery trends
Source:Brazil Central Bank (GDP, IPCA), IBGE (Unemployment), Credit Suisse (Selic), FGV (Consumer Confidence) – Last update Nov/2009
9.8 10.0
9.3
7.9
8.7 8.6
2005 2006 2007 2008 2009E 2010E
GDP Growth (%) Unemployment (%)
90
95
100
105
110
115
120
125
Jul-07Oct-07 Jan-08Apr-08 Jul-08Oct-08 Jan-09Apr-09 Jul-09
111.4
Consumer confidence
returns to pre-crisis level
111.7
3.2
4.0
5.7
5.1
5.0
0.2
2005 2006 2007 2008 2009E 2010E
19.1
15.3
12.0 12.4
8.7
10.5
5.7%
3.1%
4.5%
5.9%
4.2% 4.4%
2005 2006 2007 2008 2009E 2010E
Taxa de juros IPCA
10. 10
Real Estate Financing Still a Considerably Small Portion
of Brazilian GDP
Significant growth potential for Real Estate financing in Brazil
Source: Central Bank of Brazil, Caixa Econômica Federal, and Câmara Brasileira da Indústria da Construção
Total Real Estate Financing in Brazil (R$ billion) Total Real Estate Financing (% of GDP)
24.4 25.1 25.8
29.1
35.7
45.9
63.3
76.9
2002 2003 2004 2005 2006 2007 2008 Jul-09
(Last
12 months)
United Kingdom
2.4%
13.0%
18.0%
32.2%
51.3%
58.6%
59.2%
83.1%
Brazil
Mexico
Chile
France
Germany
Spain
Portugal
11. 11
Note:
1 Considering 100% financing
2 Subsidy calculated by monthly income of 3.5 minimum wages in São Paulo, Rio de Janeiro, Federal District and other metro regions
3 Average installment calculated using the Constant Amortization System (decreasing installments)
Economic Segment : Sector’s outlook
Minha Casa, Minha Vida program - Potential demand growth in Brazil
Minha Casa Minha Vida program enables millions of families to purchase properties
2005
Scenario
2009 Scenario
Prior to Package
2009 Scenario
Post Package1
Subsidy (R$) 0 0 22,1722
Interest Real
Estate Credit (p.a.)
13% 8.16% 5%
Term (months) 120 240 300
Property value (R$) 80,000 80,000 80,000
Income commitment 35% 30% 30%
Required monthly
income (R$)
4,500 3,030 1,450
Average monthly
installments3 (R$)
1,575 909 434
Population distribution by income
~30 million
families
2005:
R$ 4,500
Required monthly
Income (minimum wages)
9.7 6.5 3.1
Required monthly income to purchase a property
2009:
R$ 1,450
12. 12
Public Offering of Shares
Conclusion of the public offering of shares
Market
47.9%
Controlling
Group
52.1%
Market
62.7%
Controlling
Group
37.3%
Before Offering After Offering
Total Shares:
192,186,388
Total Shares:
266,436,388
Free float increased to 62.7%
Conclusion of the public offering of shares in October 2009, raising a total of R$ 928 million
13. 13
Use of funds
-20%
-10%
0%
10%
20%
30%
40%
50%
1Q 2Q 3Q 4Q 5Q 6Q 7Q 8Q 9Q 10Q 11Q 12Q
CEF
CEF (“theoretical”)
Landbank acquisition
Working Capital
necessity
Land acquisition and pre-launch incorporation
Launch Construction
PSV
Use of funds breakdown Landbank aquisition with short term maturity
Working Capital
Landbank Rossi
Landbank to be acquired
Short term Medium term Long term
Landbank
55%
Working
capital
45%
15. 15
Economic Segment – Units Launched
Units launched in the year
Launches Goal
2009
Monthly Growth
Acumulated
Units aproved by CEF
Expected
0
3,000
6,000
9,000
12,000
15,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
17. 17
Exclusive model to identify target areas
New coverage area of each Regional Office
Source: Company
RS
SC
PR
SP
MG
GO
MT
AC
AM
RR
RO
BA
PI
MA
PA
AP
TO
CE
RN
PE
AL
SE
MS
RJ
ES
DF
PB
Selected cities
110110
(Rossi’s exclusive attractive model)
Clusters
(geographical synergies)
Regional Offices
(similarities across regions)
88
3030
North
Northeast
Legend
Brasilia
Rio de Janeiro
São Paulo
Campinas
SP Interior
South
Centralized intelligence and decentralized operations
18. 18
Standardized sales and marketing
policy.
Rossi Ideal sales store.
Economic Segment: Operating Structure
Relationship with CEF.
Central management
structure and distributed
operation.
Project development: Villa Flora,
Praças Residenciais and Rossi
Ideal.
Projects approval.
Standardized process: cost reduction and
higher speed.
Aluminum plaques for the production of the
monolithic structure.
Operating Structure
NEWSTRUCTURE
Exclusive Projects and
Production for the Economic
Segment
Engineering
Renato Diniz
Economic Segment
Rodrigo Martins
Marketing and Sales Financial
Development and
Projects
Pre-cast panel centralized production and
distribution, serving several sites
Casting the panels Transportation of pre-cast panels Panel assembly
19. 19Source: Company
Appropriate products for the Low Income Segment
Villa Flora
Units from 46 to 115 m²
Prices starting at R$ 78,000
100% financed
Installments starting at R$ 310*
Planned neighborhood
NGO working to foster and preserve
citizenship and community spirit
Praças Residenciais
Units from 50 to 82 m²
Prices starting at R$ 95,000
100% financed
Installments starting at R$ 450*
Community squares
Meticulous installation and
landscaping
Differentiated architectural project
Concern with sustainability
Rossi Ideal
Units from 42 to 63 m²
Prices starting at R$ 64,000
100% financed
Installments starting at R$ 222*
Standardized product line
Meticulous installation and
landscaping
Leisure options appropriate for low
condominium cost.
*Average installment calculated using the Constant Amortization System (decreasing installments).
Economic Segment Landbank - R$ 10.4 billion
20. Real Estate Market: Industry and Company OverviewProved Experience in the Low Income Segment
Villa Jardim
Manaus - AM
1040 units
PSV % Rossi: R$ 41 million
Launch of the Sales Central Rossi Ideal Vila Geribá – Espírito Santo
“Minha Casa, Minha Vida” Fair Villa Jardim - Manaus
Rossi Ideal Vila Geribá
Vitória – ES
403 units
PSV % Rossi: R$ 36.5
million
Source: Company – 3Q09 Base
20
21. 21
Rossi Vendas
29%
19%
24%
17%
11% São Paulo
Porto Alegre
Rio de Janeiro
Campinas
Vitória
Brokers specialized in Rossi’s products;
Trained team;
Commitment to the Company;
Information speed;
Marketing e commercial activities;
Low brokers turn-over.
Cities where Rossi Vendas operates
Rossi Vendas São Paulo, Porto Alegre, Rio de
Janeiro, Campinas and Vitória.
Goals
Expand operations to Fortaleza, Goiânia,
Brasília, Curitiba and Belo Horizonte
29%
71%
Rossi Vendas
Other brokers
Sales in cities with Rossi participation - 2009 # of brokers per city
Source: Company – 3Q09 Base
23. 2323
Operating Highlights
Launches Breakdown by Income Segment and State – Total PSV 9M09
+147%
801
+182%
143
377
873
18
77
250
1Q09 2Q09 3Q09
Partners
Rossi
161
454
1,123
29%
23%16%
6%
6%
5%
4%
4%
2%2%
Rio Grande do Sul
São Paulo (metro region)
São Paulo (other cities)
Rio de Janeiro
Paraná
Amazonas
Minas Gerais
Goiás
Espírito Santo
Ceará
Bahia
44%
42%
6%
4%
3%
Economic Segment
> R$ 500,000
R$ 200,000 to R$ 350,000
Commercial
R$ 350,000 to R$ 500,000
23
Record launches of R$1.1 billion (Rossi’s % - R$873 million) in 3Q09, divided
into 18 projects with a total of 4,947 units.
Economic Segment
3,770 units launched in the quarter - 143% higher than in 3Q08
62% of the units launched in the quarter already sold
Launches
Source: Company – 3Q09 Base
Total PSV launched
24. 242424
Operating Highlights
Sales Breakdown by Income Segment and State –Total PSV 9M09
342
506
664
283
404
517
59
102
147
1Q09 2Q09 3Q09
Partners
Rossi
+48%
+31%
37%
22%
15%
9%
3%
14% Economic Segment
> 500,000
R$ 200,000 to R$ 350,000
R$ 350,000 to R$ 500,000
Commercial
< R$ 200,000
26%
21%
14%
8%
6%
5%
4%
2%
1%
9%
3%
São Paulo (metro region)
São Paulo (other cities)
Rio Grande do Sul
Paraná
Rio de Janeiro
Minas Gerais
Espírito Santo
Bahia
Goiás
Amazonas
Pernambuco
Ceará
24
Contracted sales R$ 664 million (Rossi’s % - R$ 517 million),
of which 68% were inventory sales.
Contracted Sales
Source: Company – 3Q09 Base
Total PSV Sold
28. 28
Cash Burn and Debt
0.4%
9.7
1,103.6
1,113.3
326.0
213.0
186.1
725.1
19.2
311.9
57.1
388.2
PRO FORMA
Post Offering
Debt Sep/09 Jun/09 Var.
Debt – Short Term 388.2 211.6 83%
Loans – working capital 57.1 11.1 413%
Construction Financing 311.9 194.1 61%
Debentures 19.2 6.4 200%
Debt – Long Term 725.1 787.9 -8%
Loans – working capital 186.1 237.1 -22%
Construction Financing 213.0 200.2 6%
Debentures 326.0 350.6 -7%
Total Debt 1,113.3 999.5 11%
Total Cash Position 175.5 178.8 -2%
Net Debt 937.8 820.7 14%
Net Debt/ Shareholders’ Equity 67.9% 62.3%
119
138
108 117
4Q08 1Q09 2Q09 3Q09
Cash Burn – Last 12 months
47%
31%
22% Construction Financing
Debentures
Loans - working
capital
Cash Burn stable and among the lowest in the industry
Source: Company – 3Q09 Base
29. Nossos Resultados em Números
Sales over Supply (SOS) - Rossi Share (R$ million) 4Q08 1Q09 2Q09 3Q09
Inicial Inventory 1,472 1,770 1,630 1,603
Launches 573 143 377 873
Initial inventory + Launches 2,045 1,913 2,007 2,476
Sales in the period 276 283 404 517
SOS in the period 13.5% 14.8% 20.1% 21.0%
Final inventory 1,770 1,630 1,603 1,959
Time to key delivery Ready
< 6
months
7 – 12 months
13 - 24
months
> 25
months
Total
Economic Segment 6.8 45.6 17.5 387.7 39.2 496.8
Until R$ 200,000 13.0 0 0.3 27.8 0 41.1
R$ 200,100 to R$ 350,000 20.8 61.0 40.9 135.5 22.4 280.7
R$ 350,100 to R$ 500,000 2.9 33.6 66.3 21.0 107.1 230.9
Above R$ 500,100 1.9 50.5 35.8 105.7 487.0 680.9
Commercial 0.9 6.3 6.6 36.1 178.8 228.8
Total 46.4 197.2 167.5 713.7 834.5 1,959.2
2% 10% 9% 36% 43%
Only 2% of ready units in inventories
SOS and Inventory
29Source: Company – 3Q09 Base
30. Expertise Rossi e Diferenciais Competitivos
Landbank diversified by region and product
48% of Landbank focused on the Economic Segment
Landbank 3Q09 (R$ million) - PSV by State and Income Segment
Estado
Economic
Segment
< R$
200,000
R$200,001 to
R$ 350,000
R$350,001 to R$
500,000 > R$ 500,000 Commercial Lots Total %
Amazonas 371 74 - - - - 445 2%
Bahia - - 879 467 - - - 1,347 6%
Ceará 371 - - 104 - - - 476 2%
Federal District 914 211 - - 367 534 - 2,027 9%
Espírito Santo 662 - - - - 117 - 779 4%
Goiás 1,375 - - - - - - 1,375 6%
Mato Grosso do Sul 53 - - - - - - 53 0%
Minas Gerais 1,775 92 138 - - - - 2,006 9%
Paraná 101 - 112 - - - - 213 1%
Rio de Janeiro 660 - 325 992 88 - - 2,065 9%
Rio Grande do Norte 155 - - - - 82 - 237 1%
Rio Grande do Sul 1,992 - 586 - 778 - - 3,356 15%
São Paulo
(other cities)
1,626 188 1,189 455 671 49 423 4,601 21%
São Paulo
(metro region)
378 - 192 972 1,089 30 140 2,801 13%
T O T A L 10,435 566 3,421 2,991 2,994 812 563 21,781 100%
Distribution 48% 3% 16% 14% 14% 4% 3% 100%
Landbank
30Source: Company – 3Q09 Base
31. 31
SAP Technology fully implemented
Automated and integrated processes nationwide since 1999
Full control and support for execution
Cost control page
Source: Company
Hyperion – Simulate
scenarios based on SAP
data
Monitor Stand Sales
throughout the country
Control timeframe of materials
33. 33
+
+
+
Board of Directors
(family and
independent members)
Responsible for setting strategy guidelines
Meets once a month or when necessary
Independent Fiscal
Council
Ensures fiscal integrity
Meets every 3 months
Professional
management team
Implements strategy guidelines set by Board of Directors
Key executives with sound industry knowledge
Stock option plan (3% of authorized paid-in capital)
Restricted shares (1% of authorized paid-in capital)
Profit sharing plan for all employees (Up to 8% of net
income)
Compensation
structure
Experienced Management
Strategy
Discipline
Execution
Alignment
Source: Company
35. 35
Liquidity
¹) Source: Bloomberg 11/10/2009 – average last 30 days
Increase in liquidity – from 6th to 3rd largest in Latin America real estate industry (¹)
Rossi is included in MSCI (Morgan Stanley Capital International), benchmark for emerging markets,
“MSCI review its portfolio in Aug/09, and raised the number of Brazilian companies in its portfolio, in order to
incorporate the rallies seen in the biggest emerging markets worldwide”
Source: Economática
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Jul Aug Sep Oct Nov Dec
Average Traded Volume (R$ million) Market Value (R$ billion)
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Jan Mar May Jul Sep Nov