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APIMEC 2009
Villa Flora – Economic Segment
2
D Disclaimer
This material is a presentation of general background information about Rossi Residencial S.A. (“Rossi”) as of the date of this presentation. Information contained herein has been
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
and may not be disclosed to any third person. There are no representations or warranties, express or implied, regarding the accuracy, fairness, or completeness of the information
presented herein, which shall not support any decision of investment.
This presentation contains statements and information that are forward-looking pursuant section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
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
that any such forward-looking statements and information are subject to many risks and uncertainties relating to the operations and business of Rossi and its subsidiaries. As a
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
statement or information contained herein.
Although Rossi believes that the expectations and assumptions reflected in the forward-looking statements and information are reasonable and have been based on data currently
available to its officers and directors, Rossi cannot guarantee future results or events. Rossi does not assume the commitment of update any of the forward-looking statement of
information.
Securities may not be offered or sold in the United States unlesss they are registered or exempt from registration under the Securities Act of 1933, as amended. Any offering of
securities to be made in the United States will be made by means of an offering memorandum that may be obtained from the underwriters. Such offering memorandum will
contain, or incorporate by reference, detailed information about Rossi and its subsidiaries, their business and financial results, as well as its financial statements.
This material is for distribution only to person who (i) have professional experience in matters relating to investments falling within Article 19 (5) of the Financial Services and
Markets Act of 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”), (ii) are persons falling within Article 49 (2) (a) to (d) (“high net worth
companies, unincorporated associations etc”) of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to
engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise
lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). This material is directed only at relevant persons and
must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this material relates is available only to relevant persons
and will be engaged in only with relevant persons.
This presentation does not constitute an offer, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither this presentation nor
anything contained herein shall form the basis of any contract or commitment whatsoever.
Disclaimer
3
Agenda
Overview of Rossi
 Opportunities moving forward
 Competitive advantages
Operating and Financial Highlights
Corporate Governance
Liquidity / Share Performance
Overview of Rossi
Rossi Ideal
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
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$1billion)
 Migration to
Bovespa
“Novo
Mercado”
level
 Belo
Horizonte
regional
office
 Shares
included in
Bovespa
Index
 Rossi adopts
new brand
identity
 Prix
D’Excellence
award by
Fiabci – best
low income
concept
We have delivered over 30,000 units in the low income segment
7
PSV (R$ 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
Opportunities
moving forward
Praças Residenciais
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
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
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
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
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%
14
Source: Company
Launches Guidance (PSV – R$ Billion)
2.0
3.1-3.5
4.2-4.6
2009 2010 2011
Launches Guidance for the Economic Segment
Launches Guidance (Units)
14,000
19,000
21,000
6,000
17,500
14,000
25,000
38,500
2009 2010 2011
Revised
Economic Segment (prior)
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
Uniquely
positioned to
capture growth
opportunities
Villa Flora
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
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
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
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
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
22
3Q09 Operating
and Financial
Highlights
Praças Residenciais – Economic Segment
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$873 million) in 3Q09, divided
into 18 projects with a total of 4,947 units.
Economic Segment
 3,770 units launched in the quarter - 143% higher than in 3Q08
 62% of the units launched in the quarter already sold
Launches
Source: Company – 3Q09 Base
Total PSV launched
242424
Operating Highlights
Sales Breakdown by Income Segment and State –Total PSV 9M09
342
506
664
283
404
517
59
102
147
1Q09 2Q09 3Q09
Partners
Rossi
+48%
+31%
37%
22%
15%
9%
3%
14% Economic Segment
> 500,000
R$ 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
96.0
145.6
232.5
360.5
3Q08 3Q09 9M08 9M09
354.6 430.6
914.0
1,096.3
3Q08 3Q09 9M08 9M09
25
Nossos Resultados em Números
Financial Highlights
 Net revenue reaches R$ 431 million, 21.4% higher than 3Q08
 Gross Margin of 35.0% - 3.7 p.p. higher than 3Q08
Net Revenue (R$ million)
21%
20%
52%
55%
Adjusted Gross Income (R$ million) and
adjusted Gross Margin
Net Revenue 3Q09 3Q08 9M09 9M08
Property sales and services 427 99.2% 320 90.3% 1,080 98.5% 825 90.3%
Monetary variation and interest 14 3.3% 48 13.4% 50 4.5% 121 13.2%
(-) sales taxes (11) -2.5% (13) -3.7% (34) -3.1% (32) -3.5%
Total 431 100.0% 355 100.0% 1,096 100.0% 914 100.0%
Cost o f property sold 3Q09 3Q08 9M09 9M08
Works + sites (271) 90.9% (211) 95.7% (686) 90.8% (561) 96.1%
Financial charges (27) 9.1% (9) 4.3% (70) 9.2% (23) 3.9%
Total (298) 100% (220) 100% (756) 100% (584) 100%
Adjusted gross income* 145 96 360 232
Adjusted gross margin* 35.0% 31.3% 34.4% 29.3%
* Excluding financial effects
31.3%
35.0%
29.3%
34.4%
26
Nossos Resultados em Números
 EBITDA margin of 24.5%, 7.5 p.p. increase (vs 3Q08)
 Net income in the period of R$ 61.8 million, 73.7% growth (vs 3Q08)
Financial Highlights
Net Income (R$ million) and
Net Margin (%)
35.6
61.8
102.3
141.5
3Q08 3Q09 9M08 9M09
74%
38%10.0%
14.3% 11.2%
12.9%
EBITDA (R$ million) and
EBITDA Margin (%)
60.1
105.4
153.4
247.2
3Q08 3Q09 9M08 9M09
75%
61%
16.9%
24.5%
16.8%
22.5%
EBITDA 3Q09 3Q08 Var. 9M09 9M08 Var.
Net Income 62 36 74% 142 102 38%
(+/-) Financial Expenses (Revenues), Net 1 13 -90% (1) 20 -103%
(+) Provision for income tax and social contribution 8 (1) n.m. 19 2 787%
(+) Depreciation and amortization 7 3 132% 17 6 163%
(+) Interest 27 9 188% 70 23 209%
ADJUSTED EBITDA 105 60 75% 247 153 61%
ADJUSTED EBITDA Margin 24.5% 16.9% 7.5 p.p. 22.5% 16.8% 5.8 p.p.
Source: Company – 3Q09 Base
2727
Nossos Resultados em Números
Selling expenses (R$ million) Administrative expenses (R$ million)
 More efficient at selling and administrative expenses
Financial Highlights
44
25 25
3T08 2T09 3T09
-43.2%
0.0% 29
23 24
3Q08 2Q09 3Q09
-20%
4.3%
3Q08 2Q09 3Q09
Source: Company – 3Q09 Base
Operating expenses (R$ million) 3Q09 3Q08 Var. 9M09 9M08 Var.
Administrative 24 29 -17.2% 71 78 -8.8%
Selling 25 44 -43.5% 76 100 -24.1%
Administrative/Net Revenue 5.7% 8.1% -2.5p.p. 6.5% 8.6% -2.1p.p.
Selling/Net Revenue 5.7% 12.4% -6.6p.p. 7.0% 11.0% -4.0p.p.
Administrative/Launches 2.8% 5.6% -2.8p.p. 5.1% 5.3% -0.2p.p.
Selling/Launches 2.8% 8.5% -5.6p.p. 5.5% 6.8% -1.4p.p.
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
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
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
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
32
Corporate
Governance
Residencial Vertical
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
34
Liquidity
Share Performance
Rossi
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
Share Performance in 2009
350
400
250
300
150
200
50
100
2-Jan-09
26-Jan-09
19-Feb-09
15-M
ar-09
8-Apr-09
2-M
ay-09
26-M
ay-09
19-Jun-09
13-Jul-09
6-Aug-09
30-Aug-09
23-Sep-09
17-O
ct-09
10-N
ov-09
RSID3 IBOV IMOB
36Source: Bloomberg
37
Institution Analyst Contact
BB Investimentos Antonio Emilio Ruiz antonioemilio@bb.com.br
Banco Fator Eduardo Silveira esilveira@bancofator.com.br
Barclays
Guilherme Vilazante
Edoardo Biancheri
guilherme.vilazante@barcap.com
edoardo.biancheri@barcap.com
Citigroup Cecília del Castillo cdelcastillo@accival.com
Credit Suisse
Marcelo Telles
Pedro Barbosa
marcelo.telles@credit-suisse.com
pedro.barbosa@credit-suisse.com
Goldman Sachs
Jason B. Mollin
Leonardo Zambolín
jason.molin@gs.com
leonardo.zambolin@gs.com
Itaú
David Lawant
Cecília Viriato
david.lawant@itau.com.br
cecilia.medeiros@itau.com.br
JP Morgan
Adrian Huerta
Marcelo Motta
adrian.huerta@jpmorgan.com
marcelo.g.motta@jpmorgan.com
Merrill Lynch Carlos Peryrelongue carlos_peryrelongue@ml.com
Santander
Marcello Milman
Fabiola Gama
mmilman@santander.com.br
fpgama@santander.com.br
UBS Gordon Lee gordon.lee@ubs.com
BTG Pactual Rodrigo Monteiro rodrigo.monteiro@btgpactual.com
Analyst Coverage
38
ROSSI RESIDENCIAL S.A.

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2009 APIMEC Presentation

  • 1. APIMEC 2009 Villa Flora – Economic Segment
  • 2. 2 D Disclaimer This material is a presentation of general background information about Rossi Residencial S.A. (“Rossi”) as of the date of this presentation. Information contained herein has been 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 and may not be disclosed to any third person. There are no representations or warranties, express or implied, regarding the accuracy, fairness, or completeness of the information presented herein, which shall not support any decision of investment. This presentation contains statements and information that are forward-looking pursuant section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities 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 that any such forward-looking statements and information are subject to many risks and uncertainties relating to the operations and business of Rossi and its subsidiaries. As a 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 statement or information contained herein. Although Rossi believes that the expectations and assumptions reflected in the forward-looking statements and information are reasonable and have been based on data currently available to its officers and directors, Rossi cannot guarantee future results or events. Rossi does not assume the commitment of update any of the forward-looking statement of information. Securities may not be offered or sold in the United States unlesss they are registered or exempt from registration under the Securities Act of 1933, as amended. Any offering of securities to be made in the United States will be made by means of an offering memorandum that may be obtained from the underwriters. Such offering memorandum will contain, or incorporate by reference, detailed information about Rossi and its subsidiaries, their business and financial results, as well as its financial statements. This material is for distribution only to person who (i) have professional experience in matters relating to investments falling within Article 19 (5) of the Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”), (ii) are persons falling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). This material is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this material relates is available only to relevant persons and will be engaged in only with relevant persons. This presentation does not constitute an offer, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Disclaimer
  • 3. 3 Agenda Overview of Rossi  Opportunities moving forward  Competitive advantages Operating and Financial Highlights Corporate Governance Liquidity / Share Performance
  • 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%
  • 14. 14 Source: Company Launches Guidance (PSV – R$ Billion) 2.0 3.1-3.5 4.2-4.6 2009 2010 2011 Launches Guidance for the Economic Segment Launches Guidance (Units) 14,000 19,000 21,000 6,000 17,500 14,000 25,000 38,500 2009 2010 2011 Revised Economic Segment (prior)
  • 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
  • 22. 22 3Q09 Operating and Financial Highlights Praças Residenciais – Economic Segment
  • 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
  • 25. 96.0 145.6 232.5 360.5 3Q08 3Q09 9M08 9M09 354.6 430.6 914.0 1,096.3 3Q08 3Q09 9M08 9M09 25 Nossos Resultados em Números Financial Highlights  Net revenue reaches R$ 431 million, 21.4% higher than 3Q08  Gross Margin of 35.0% - 3.7 p.p. higher than 3Q08 Net Revenue (R$ million) 21% 20% 52% 55% Adjusted Gross Income (R$ million) and adjusted Gross Margin Net Revenue 3Q09 3Q08 9M09 9M08 Property sales and services 427 99.2% 320 90.3% 1,080 98.5% 825 90.3% Monetary variation and interest 14 3.3% 48 13.4% 50 4.5% 121 13.2% (-) sales taxes (11) -2.5% (13) -3.7% (34) -3.1% (32) -3.5% Total 431 100.0% 355 100.0% 1,096 100.0% 914 100.0% Cost o f property sold 3Q09 3Q08 9M09 9M08 Works + sites (271) 90.9% (211) 95.7% (686) 90.8% (561) 96.1% Financial charges (27) 9.1% (9) 4.3% (70) 9.2% (23) 3.9% Total (298) 100% (220) 100% (756) 100% (584) 100% Adjusted gross income* 145 96 360 232 Adjusted gross margin* 35.0% 31.3% 34.4% 29.3% * Excluding financial effects 31.3% 35.0% 29.3% 34.4%
  • 26. 26 Nossos Resultados em Números  EBITDA margin of 24.5%, 7.5 p.p. increase (vs 3Q08)  Net income in the period of R$ 61.8 million, 73.7% growth (vs 3Q08) Financial Highlights Net Income (R$ million) and Net Margin (%) 35.6 61.8 102.3 141.5 3Q08 3Q09 9M08 9M09 74% 38%10.0% 14.3% 11.2% 12.9% EBITDA (R$ million) and EBITDA Margin (%) 60.1 105.4 153.4 247.2 3Q08 3Q09 9M08 9M09 75% 61% 16.9% 24.5% 16.8% 22.5% EBITDA 3Q09 3Q08 Var. 9M09 9M08 Var. Net Income 62 36 74% 142 102 38% (+/-) Financial Expenses (Revenues), Net 1 13 -90% (1) 20 -103% (+) Provision for income tax and social contribution 8 (1) n.m. 19 2 787% (+) Depreciation and amortization 7 3 132% 17 6 163% (+) Interest 27 9 188% 70 23 209% ADJUSTED EBITDA 105 60 75% 247 153 61% ADJUSTED EBITDA Margin 24.5% 16.9% 7.5 p.p. 22.5% 16.8% 5.8 p.p. Source: Company – 3Q09 Base
  • 27. 2727 Nossos Resultados em Números Selling expenses (R$ million) Administrative expenses (R$ million)  More efficient at selling and administrative expenses Financial Highlights 44 25 25 3T08 2T09 3T09 -43.2% 0.0% 29 23 24 3Q08 2Q09 3Q09 -20% 4.3% 3Q08 2Q09 3Q09 Source: Company – 3Q09 Base Operating expenses (R$ million) 3Q09 3Q08 Var. 9M09 9M08 Var. Administrative 24 29 -17.2% 71 78 -8.8% Selling 25 44 -43.5% 76 100 -24.1% Administrative/Net Revenue 5.7% 8.1% -2.5p.p. 6.5% 8.6% -2.1p.p. Selling/Net Revenue 5.7% 12.4% -6.6p.p. 7.0% 11.0% -4.0p.p. Administrative/Launches 2.8% 5.6% -2.8p.p. 5.1% 5.3% -0.2p.p. Selling/Launches 2.8% 8.5% -5.6p.p. 5.5% 6.8% -1.4p.p.
  • 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
  • 36. Share Performance in 2009 350 400 250 300 150 200 50 100 2-Jan-09 26-Jan-09 19-Feb-09 15-M ar-09 8-Apr-09 2-M ay-09 26-M ay-09 19-Jun-09 13-Jul-09 6-Aug-09 30-Aug-09 23-Sep-09 17-O ct-09 10-N ov-09 RSID3 IBOV IMOB 36Source: Bloomberg
  • 37. 37 Institution Analyst Contact BB Investimentos Antonio Emilio Ruiz antonioemilio@bb.com.br Banco Fator Eduardo Silveira esilveira@bancofator.com.br Barclays Guilherme Vilazante Edoardo Biancheri guilherme.vilazante@barcap.com edoardo.biancheri@barcap.com Citigroup Cecília del Castillo cdelcastillo@accival.com Credit Suisse Marcelo Telles Pedro Barbosa marcelo.telles@credit-suisse.com pedro.barbosa@credit-suisse.com Goldman Sachs Jason B. Mollin Leonardo Zambolín jason.molin@gs.com leonardo.zambolin@gs.com Itaú David Lawant Cecília Viriato david.lawant@itau.com.br cecilia.medeiros@itau.com.br JP Morgan Adrian Huerta Marcelo Motta adrian.huerta@jpmorgan.com marcelo.g.motta@jpmorgan.com Merrill Lynch Carlos Peryrelongue carlos_peryrelongue@ml.com Santander Marcello Milman Fabiola Gama mmilman@santander.com.br fpgama@santander.com.br UBS Gordon Lee gordon.lee@ubs.com BTG Pactual Rodrigo Monteiro rodrigo.monteiro@btgpactual.com Analyst Coverage