2. Disclaimer
We make forward-looking statements that are subject to risks and uncertainties. These Statements are
based on the beliefs and assumptions of our management, and on information currently available to us.
Forward-looking statements include statements regarding our intent, belief or current expectations or that
of our directors or executive officers.
Forward-looking statements also include information concerning our possible or assumed future results
of operations, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,''
''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions.
Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and
assumptions because they relate to future events and therefore depend on circumstances that may or may
not occur. Our future results and shareholder values may differ materially from those expressed in or
suggested by these forward-looking statements. Many of the factors that will determine these results and
values are beyond our ability to control or predict.
2
3. Shareholder Structure, Corporate Governance and
Liquidity
True corporation listed on the NYSE and the most liquid Brazilian Real Estate company
GFSA3 Majority Independent Board of Directors;
100% Senior management with an average of over 20
years of experience and interests aligned with
shareholders through Stock Option Plan;
80% 100%
Permanent Fiscal Council, Audit, Compensation,
Finance and Governance committees
100% free float;
Avg. Daily Trading Volume (R$ mm) - Last 90 days1
100% tag along rights;
100% common shares (“Novo Mercado”);
Full compliance with Sarbanes-Oxley;
Only Brazilian real estate company listed on the
NYSE.
W' DZs Z
3
1. Source: Bloomberg as of March , 2011
4. Solid Track Record of Value Creation
Strong growth, value-creating transactions with a successful history in the capital
markets
3,921
3,022
Net revenue (R$ mm)
New Follow-on:
Net Primary
1,740 proceeds of
R$1.02 billion
1,204
664 R$600 mm
457 in FI-FGTS
debentures
(May/09)
Acquisition of
Follow-on: a 60% stake
R$488 mm
of primary R$600 mm Increase in
IPO: proceeds stake from
in FI-FGTS
R$494 mm 60% to 80%
debentures
of primary
(Dec/09)
proceeds
Equity
International First Brazilian
investment company in
the sector to
be listed in
Acquisition the NYSE Acquisition of
Foundation
of a 60% the remaining
stake 40%
1954 - 2004 2005 2006 2007 2008 2009 2010
4
6. Multifaceted Residential Products in All Income Segments
Focused on the residential market, with 3 leading brands strategically positioned in
all income segments
Segment /
Income
Mid and Upper-Mid Mid and Upper-Mid Affordable Entry-Level
Price
Unit price: R$200 thousand Unit price: R$70 – R$500 thousand Unit price: R$50 – R$200 thousand
Contribution
Sales
2010
49% 15% 36%
Presence
44 cities in 19 states 64 cities in 22 states 97 cities in 14 states
Completed
Projects
18 projects/phases in 2010 14 projects/phases in 2010 51 projects/phases in 2010
(2,723 units) (2,150 units) (8,021 units)
Characteristics
Vertical Horizontal lot development Horizontal / Vertical
Metropolitan areas Suburban areas Metropolitan areas and surroundings
Custom projects Custom projects Standardized products
6
7. Strong Demand Growth in All Segments
Strong potential demand of around R$170 billion per year, being 58% in the mid and
upper mid income segment and 42% in the affordable entry-level segment
Number of Families (mm) New Families
Income Bracket Gafisa Potential Demand per Year
per Year
(Monthly) Brands (R$ bn)
2007 2030 (thousand)
Above R$ 32,000 0 0.3 13
Mid and Upper-Mid
Upper
New Families
R$ 16,000 - R$ 32,000 0.3 1.3 530
Income
43 (thousands)
Potential Demand
101
R$ 8,000 - R$ 16,000 1.1 4.3 139 (R$ bn)1
R$ 4,000 - R$ 8,000 3.3 11.0 335
New Families
R$ 2,000 - R$ 4,000 8.4 21.8 583 846
(thousands)
Entry-Level
Affordable
Potential Demand
72
(R$ bn)2
R$ 1,000 - R$ 2,000 15.5 27.6 526
Up to R$ 1,000 31.7 29.1 (113)
1,526
TOTAL 60.3 95.4 1,526
Source: “O Brasil Sustentável”, FGV and Ernst Young, 2007
Notes: Gafisa: Positioned to capture growth in all
1. Assumes an average ticket of R$190,000
2. Assumes an average ticket of R$85,000 income segments demand
7
8. National Footprint
National footprint captures both rapidly growing and large metropolitan regions
Geographic Footprint Landbank Distribution vs. GDP Distribution
Landbank 4Q10 GDP Distribution - 2008
^
^
D ^ W
^ W
D
E
E
E Z : Z
E
K :
K ^
^
R$ 18.1 Billion
Real GDP Growth 1
8.0%
6.6% 6.9%
Brand States2 Cities Legend 4.7%
19 44 3.1%
14 97
22 64
Consolidated 22 136
South Midw est Southeast Northeast North
Source: Company and IBGE
Note:
1. Nominal GDP growth rate per year for 2003 – 2006 adjusted by the average consumer price index (IPCA) of the period
2. Does not Include Brasilia Federal District . 8
9. Strategically Located Land Bank
Gafisa has a strategic land bank that allows for continued project launches
Land bank distribution 2010 Land bank PSV (R$ million)
6,723 18,054
W
^
15,823
Z 4,586
' 1.6x
4,285
10,195 (4,492) 5,223
1,536 3,962
4.7x
2,930
8,245
7,576
5,729
d
2,167
IPO 2006 2007 2009 2010 Net 2010
Launches Acquisitions
' d
*Note: Tenda 2007 represents Fit + Bairro Novo
9
10. Proven Track Record of Execution
Units Under Construction Projects under Construction
54,977
49,423 204
188
33,586
85
16,099 63
2007 2008 2009 2010 2007 2008 2009 2010
Units Completed Number of Engineers
25,000 920
880
674 309 399
12,894 459 241 58
10,831 61
47
8,206 186
31 513 460
3,108 386
242
2007 2008 2009 2010 2011E 2007 2008 2009 2010
Construction Architects On the Job Soma
10
^ '
11. Strong Brand Recognition and Solid Reputation
Gafisa benefits from its strong brand recognition and solid reputation through: (i) a
higher sales speed (VSO); (ii) commanding premium prices; and (iii) easier access to
asset swaps / partnerships
Leading Brands Strong Brands in Every Segment
Maior Construtora do Brasil: Largest Construction
1st
Company in Brazil – 2008 / 2009 (ITCnet)
► 56 years in the Real Estate industry
► Completed more than 1,000 developments and 12 million m2
► Awards: Valor Top Management and Top Manager of the Year
1st Top of Mind – 2010 (Millward Brown-IBOPE)
► One of the best known brands in the affordable entry-level
segment
► Completed more than 9000 delivered units in 2010
1st Reference in Urban Development
► Completed more than 40 developments and 3.4 million m2
► Awards: Best Marketing Award 2010 and Top Environmental
Policies
Source: ITCnet, Revista Marketing, Valor Econômico
11
13. Launches, Contracted Sales and Revenues
High growth rates over the last years ...
Launches (R$mm) Pre-Sales (R$mm) Net Revenues (R$mm)
1
5,300
4,492
4,006
4,196
3,721
1,596
3,248 1,433
3,022
1,970 1,287
2,578
1,361 988
2,301 741
2,236 599 445
932
300 313 617 1,740 277
237 1,627
377
60 276
300
420 238 1,204 250
1,005 995 7
2,155 193
1,974 1,988
1,913 664 1,757
1,698 1,510
1,265 1,329 1,345 1,215
1,005 995 1,004
664
2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Gafisa Alphaville Tenda
Note:
1 2011´s guidance range is from 5.0 to 5.6 billion
13
14. EBITDA, Net Income and Results to be Recognized
… aligned with sustained growth in profitability
Adjusted EBITDA1 (R$ mm) and Net Income (R$ mm) and Results to be Recognized (Backlog4)
Margin (%) Margin 2 (%) (R$ mm) and Margin (%)
3
20.1% 38.9%
37.5%
540 14%
17.5%
12.8% 35.1% 35.2% 1,540
34.6%
15.0% 14.9%
13.4%
12%
604 440 416
74 9.9%
9.6% 10%
1,066
340 1,015
8.1%
8%
747 6.9%
240
300
41 6%
530 528
140
110 102
92 4% 298
259
180 46
40
89 2%
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Net Income (R$ mm) Margin (%)
EBITDA (R$ mm) Margin (%) -60 0% REF (R$ mm) Margin (%)
Tenda’s goodwill net of provisions
Notes:
1 Adjusted for stock options and excluding Tenda’s goodwill net of provisions
2 Net income before minority interests and non-recurring expenses
3 2011E guidance range announced by the Company between 18% and 22%
4 Gross Profit
14
15. Solid Balance Sheet
2010 Leverage (R$ mm) Debt Composition (R$ mm) and Rates
SFH /
Project 1,957 8.2% - 12.0% (TR) 53%
Net Debt /
65.3% Finance
Shareholders’ Equity
Working
Capital
664 CDI + (0.7% – 4.2%)
Debentures 669 CDI + (1.5 – 1.9%) 47%
1,201
Investor
Obligations
380 CDI
Total 3,670 11.8%
3,670 Debt Maturity Schedule 1 (%)
2,469
34%
32% 52%
52%
68% 66%
48% 48% 100%
h h h h
Total Debt Cash Net Debt
W Z Z
Note:
1 Does not include investors obligations of R$380 mm
15
16. Trading Multiples
Liquidation Value (R$mn) Blue Chips (4Q10)
Company Gafisa Peer1 Peer2 Peer3 Peer4 Avg(1)
Receivables from Sold Units 9.226 11.319 11.905 6.242 5.558
(-) Taxes (623) (764) (804) (421) (375)
(-) Obligations from Sold Units (2.423) (3.043) (4.079) (1.685) (1.962)
Mkt Value of Units for Sale 3.295 4.174 3.905 2.876 2.364
(-) Taxes (222) (282) (264) (194) (160)
(-) Construction Obligations (884) (567) (1.149) (1.072) (1.022)
Book Value of Land 838 2.443 2.210 1.249 681
(-) Swaps booked in Advances (86) (744) (1.826) (550) (82)
(-) Payables from land acqs. (354) (445) (465) (338) (368)
Other Assets 105 502 2 38 10
(-) Other liabilities (144) - - - -
Cash and Equivalents 1.201 1.787 1.155 1.167 970
(-) Corporate Debt (1.713) (1.654) (1.493) (1.157) (979)
(-) SFH and other Project Finance (1.957) (4.044) (1.948) (782) (1.131)
(-) Minority Shareholders (76) (93) (434) (236) -
(+) Invest. in Subsidiaries 194 57 6 - -
Liquidation Value 6.377 8.646 6.721 5.138 3.502
BV Adjusted 5.222 7.791 5.860 4.062 3.133
BV 3.827 6.104 4.328 2.913 2.532
Deferred Income 1.417 1.708 1.658 1.219 601
Deferred Revenues 3.963 5.095 5.920 3.114 2.748
Deferred Costs and Expenses (2.423) (3.043) (4.079) (1.685) (1.962)
Taxes (over Sales and Income) (123) (344) (184) (210) (185)
Avg Stake 98% 99% 92% 94% 100%
P/LV 0,74 1,26 1,01 1,28 1,12 1,14
P/BVAdj 0,90 1,40 1,15 1,62 1,26 1,34
P/BV 1,23 1,79 1,56 2,26 1,55 1,79
Market Cap 4.722 10.922 6.767 6.588 3.932
# of shares 440 1.142 426 490 269
Closing price 10,7 9,6 15,9 13,4 14,6
Avg Daily Trdn Volume (US$ mn) 63,6 57,7 72,0 36,5 23,7
Source: Barclays Capital Research and Companies' Information - (1) Excluding Gafisa
16
17. Gafisa’s Differentiation
Industry Leading Liquidity and Corporate
Governance
Multifaceted Residential Products in All Income
Segments
National Footprint
Proven Track Record of Execution
Strong Brand Recognition and Solid Reputation
17
19. Tenda: Differentiated Platform for the Affordable Entry-
Level Segment
Through Tenda, Gafisa has a differentiated and developed platform to capture growth
in the affordable entry-level segment
Sales Standardized Construction Process
Centrally located and well diversified
portfolio
Duo Tower
S
Garden Life
► Hybrid construction model with in-house
► Well-trained and dedicated sales force
and outsourced construction capabilities
helps clients with home purchasing and
financing decisions
► Standardized materials
► Sales force located in areas with constant
flow of people ► 4 project options in each production line
► High variety of products and branch
locations to best meet client needs ► Economies of Scale
19
20. Tenda: Blue-Print Mortgage (“Crédito Associativo”)
The use of Crédito Associativo reduces the Working Capital requirement
^
d
W W
W
^W
W^s
W
Typical Project Cash Flow for low-income project with land acquired for cash
With Crédito Associativo
Commercial Launch
End of construction
Land Acquisition
there is little WC requirement
Beginning of
Key Delivery
construction
and the company cash flow
% Cash exposure over PSV
already moves from negative
to positive during the
No. of months construction period;
With a traditional financing
scheme, we have to use
project finance to cover the
W W negative WC, until the
Assumes that the land represented 10% of the PSV and was paid for in 6 installments
Crédito Associativo is provided by Caixa Econômica Federal (CEF) to finance low-income projects/units.
delivery.
20
21. Z d
Traditional Construction
Months
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Foundation
Traditional Brick blocks Construction Method;
Building and Finishing
Title Process Use of Ceramic and Concrete Blocs;
Collection
High demand for finishing repairs;
Construction Cycle lasts 10-12 months;
Aluminum Molds Construction
Months
1 2 3 4 5 6 7 8
Foundation
Building and Finishing Construction based on Aluminum Molds
Title Process
Collection
High constructions efficiency avoiding excessive
wastes;
Concrete walls done on site;
Construction Cycle lasts 4-5 months;
Effectiveness of the production process
21
22. Aluminum Mold Construction Method
Tenda: Valle Verde Cotia, SP
INCC Evolution (%) – Last 12 months
% Dec-07 Dec-08 Dec-09 Dec-10
Consolidated INCC
Materials e Equipments
Labor
Labor costs always tend to surpass the other INCC items
22
23. Alphaville: Differentiated Business for Residential Land
Communities
Alphaville Concept Steady Growth
Leisure
Residential Area Launches (R$ mm)
Area
741
Residential
Area 420
312
237
111
2006 2007 2008 2009 2010
Alphaville
Commercial Area Club Commercial
Residential
Area
Multi-family
Area Pre-Sales (R$ mm) and VSO (%)
59%
Areas
59% 599
Sustainable Business Model
59%
60%
► Partnership contracts via land swaps 377
n.a. 300
► Construction only after pre-sales
238
► High sales velocity
140
► Alphaville Foundation enables sustainable integration with
the surrounding communities
2006 2007 2008 2009 2010
23
25. Housing FinanceSystem (SFH) – FundingSources
Allocation Distribution Borrowers
Funding
of of
Sources
Resources Resources
CEF Investments
Companies
in Infrastructure
Registered 8% of their Income FGTS (MCMV)
Workers TR + 3%
Companies
SFH
Private
Individuals
Compulsory
Housing Credit
TR + 6.17% Companies
Market
Private
Savings 30%
Central Bank Individuals
Accounts Compulsory Deposits
TR+6.17% 20%(TR+6.2%).10%(Selic)
Companies
Resources for
Lending Private
Individuals
25
26. Brazilian Savings Loan System (SPBE)
Growth in Brazilian Savings LTM Monthly Disbursements by the SBPE
Z
Z
s z z s zKz
Brazilian savings are growing steadily, ensuring available credit for the coming years
^ ' ^ / Z z Housing Credit
Sources guaranteed
while new sources are
under development
Sources: Brazilian Central Bank and Banco Santander
26
27. Growing Credit Availability
In recent years, the credit supply for real estate financing has increased substantially
with lower interest rates and longer tenors
Interest Rates vs. Housing Financing
A favorable growth trend for credit availability began in
35% 160
2005, when the annual Selic was close to 20%;
30% 140
120
25%
100
In 2008 the Central Bank increased the Selic from
20%
80 11.25% to 13.75% without any impact on home financing;
15%
60
10% 40
According to the Central Bank, the market is expecting
5% 20
0% 0 a Selic of 12.25% by the end of 2011.
Dec- Sep- Jul- Apr- Jan- Oct- Aug- Apr- Oct- May- Nov- Jun- Dec-
02 03 04 05 06 06 07 08 08 09 09 10 10
Selic (%a.a.) Real Estate Financing (R$ billion)
Real Estate Financing – Amount Funded (R$ bn) Housing Financing vs. GDP1
79
22
50
40
25 16
10
10 15 57
6 7 34
6 30
3 4 9 18
3 6
2004 2005 2006 2007 2008 2009 2010 h^ h D
SBPE FGTS Brazil: high growth potential for home financing
Source: Central Bank, IBGE and ABECIP
1. Data from Warnock and Warnork (2008). For Brazil, consider data from 2010 E
27
28. Real Price Variation for New Units - MRSP
3 Bedrooms
Real Variation (2005-10): 22%
22,38% 121,86% In 5 years, real prices have shown a 26% raise in the
metropolitan area of São Paulo, mainly from small units;
10,43%
Base 100 0,70%
-5,79%
-1,91%
-3,95% This raise happened specially on the last 12 months, taking
benefit from the quick post-crisis recovery;
Despite the raise since 2005, this raise is still in line with the
average real income raise.
2004 2005 2006 2007 2008 2009 Jan- 2010
Jun/10
Average Price SP Real Average Prices YoY
1 Bed 2 Bed 3 Bed Preços YOY
Variation (YoY) Income 80%
2005 -1,93% 60%
40%
2006 -12,83%
20%
2007 7,70%
0%
2008 4,63% -20%
2009 2,50% -40%
Jan-Jul/10 28,07% -60%
jan/06 jul/06 jan/07 jul/07 jan/08 jul/08 jan/09 jul/09 jan/10
Cumulate 26,4%
Fonte: MCM Consultores – Região Metropolitana de São Paulo
28
29. Demographic Data – Poverty and Income Improving constantly
Percentage of Poor households Monthly Income per Capta
(%) 1981 1990 2001 2009 Var (%) (R$) 1981 1990 2001 2009 Var (%)
Southeast 20.2 23.8 18.1 9.0 -55% Southeast 439 582 620 838 191%
South 28.5 31.0 19.6 8.7 -70% South 417 541 419 493 118%
Northeast 60.1 63.5 51.1 32.3 -46% Northeast 244 264 312 443 182%
North 33.0 32.3 38.0 25.6 -23% North 483 541 670 872 181%
Mid-West 29.8 27.2 20.5 9.4 -69% Mid-West 620 654 722 848 137%
Brazil 33.4 36.0 28.1 16.4 -51% Brazil 468 511 571 706 151%
Strong and constant improvement has allowed Brazilian population to enlarge it´s active work force and to
grow older
Demographic Results – Age Distribution
1980 2000 2020e
27% between 35% between 42% between
age 30-60 age 30-60 age 30-60
D t D t D t
Source: IBGE – Projeção da População Brasileira
IPEA – Ipeadata 29
30. Government Programs – MCMV I
Government programs were created to reduce the significant housing deficit in the lower
income segments
Highlights Simulation of Potential Impact on Market Size
► Financing for one million houses with up to Average Unit Price: “Minha Casa, Minha
Before
R$23,000 in subsidies to families with income of R$80k Vida” Program
up to 10x the monthly minimum wage (R$4,650)
Subsidy 0 16,000
► R$34 billion in subsidies (Federal Government, Mortgage 80,000 64,000
FGTS, BNDES)
Cost (TR+) 7% 5%
► Financing of homes with a price range of
Monthly installments 665 394
R$80,000 to R$130,000
Minimum monthly income 2,661 1,969
► Interest Rates ranging from TR+5% – TR+8%
Equivalent of minimum wages 6.4 4.2
► Homebuilders can finance 100% of the property
value Market Size
(millions of homes) 13.4 23.4
► No down payment and no installments during the
construction period (for families with income up to
3x the minimum wage) Additional market of approx. 10 million houses
Source: Market Reports
30
31. Government Programs – MCMV II
Government renewed MCMV program, giving more visibility to the Real Estate sector:
Highlights Income distribution
► MCMV II income distribution followed the same
distribution of the contracted units from MCMV I:
► Financing for two million houses up to 2014;
► R$72 billion in subsidies;
# of units: 1 million 2 million
► Continued growth for the next 4 years already
committed;
► General details to come up to the beginning of
2011;
► It confirms the government commitment to
provide financing for entry level homebuyers.
DDs / DDs / D DDs //
Dt Dt Dt
Source: CS, UBS, CEF, Market reports
31
32. Efficiency Gains under “MCMV” Program
Tenda contracted 22,288 units in 2010 and transferred 2,865 units to CEF on the 4Q10
d h DDs /
D t
Dt
Dt
dKd
h
W h DDs
Y
Y
Y
Y
dKd
d
W h DDs
Y
Y
Y
Y
dKd
32
33. CEF Real Estate Financing
Caixa Econômica Federal has reached historical records of real estate financing, and
is responsible for 76% of the market contracts
Housing Financing Contracts (R$ bn) CEF vs. Market – Financing of New Units (‘000 units)
947
1,231 186
76 603
897
141
47
503 515 661
425 443 312
267 276
326 223
251 23
47 92 167
13 15 118 132
6 9 38 55
5 29 177 176 187
88 94 145 100
39 17
2003 2004 2005 2006 2007 2008 2009 2010 2003 2004 2005 2006 2007 2008 2009 2010
Caixa - Others Caixa - MCMV Market
Financing (R$ bn) Financing Amount ('000)
MCMV Contracts Units (‘000) Inventory of Received Proposals (‘000 units)
374 Projects 6,459
72
3,966 1.048
3,219
112 212
1,868 814
188
17 656 311
149 495 140
42 33 114
364 193
96 110
1 149
60 10 191
33 96 57 78 651
27 8 130 95 481
22 394
8 53 52 75 191
8 12 30 20 24 25 26
Y Y Y Y Y Y Y Jun-09 Sep-09 Dec-09 Apr-10 Nov-10
0 a 3 MW 3 a 6 MW 6 a 10 MW
^D ^D ^D
33
Source: Caixa Econômica Federal
38. 2011 Guidance
We expect an adjusted EBTIDA margin for the full year of between 18% and 22%. This year we are also
giving the breakdown between the first and second half, since we expect some important changes on the
operational side, mainly related to:
1. lower revenue resulting from fewer launches in 2009, compared to 2008 (2009: R$2.3 billion; 2008 R$4.2 billion),
ensuing impact on the diluting of fixed costs;
2. Delivery of lower margin products by Tenda and by Gafisa
3. Possible discounts on units that are ready but unsold, relating to launches in 2008 and earlier years.
The guidance figures for 2011 are as follows:
Launches EBITDA Margin Net Debt/Equity (%) -
Guidance 2011
(R$ million) (%) EoP
Minimum 5,000 18.0%
Average 5,300 20.0%
Maximum 5,600 22.0% 60%
EBITDA Margin (%)
1H11 2H11 2011
Guidance 2011
Minimum 13.0% 20.0% 18.0%
Average 15.0% 22.0% 20.0%
Maximum 17.0% 24.0% 22.0%
38
39. d ' W
D
Launch Start Construction
h
D D D D D D D
D
Sales 30% 60% 70% 80% 87% 94% 100%
% Costs - 2,5% 15% 35% 65% 85% 100%
Revenues - 1,5% 10,5% 28% 57% 80% 100%
Collections
(cumulative) 1% 4% 9% 11% 18% 25% 85% 100%
39
