2. IMPORTANT NOTICE
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. AGENDA
Wilson Amaral
Chief Executive Officer, Gafisa
Antonio Carlos Ferreira Rosa
Development Director, Gafisa
Mario Rocha Neto
Construction Director, Gafisa
Marcelo Martins Louro
Chief Financial Officer, Alphaville
Duilio Calciolari
Chief Financial Officer, Gafisa
3
5. OUR HISTORY
1954 1997 2004 2005 2006 2007 2008
• Gafisa is • GP Invests • GP takes • Equity • IPO • Follow-on • 60% Control
founded control of International Equity- of Tenda
• Creation of
the (Sam Zell) Offering
Gafisa Vendas • Equity
Company Invests • NYSE Listing International
• AlphaVille • Creation of increases
Acquisition Fit interest by 5%
Residencial
• Gafisa joins
Ibovespa
and IBRX 50
• Cipesa
Acquisition
5
6. DIVERSIFIED AND INTERNATIONAL SHARE BASE
Free Float1
•Leading investor in the sector
•Founded by Sam Zell
1 2% treasury shares
19% 79%
• Sole Brazilian homebuilder listed on
• Independent Board NYSE
• Novo Mercado listing • Compliance with the Sarbanes-Oxley
• US GAAP reconciliation Act requirements
• 100% tag-along rights • Audit, Compensation, Finance and
Governance Committees
7%
13% ADR
Institutional - International
53% Institutional - Local
27%
Individual
6
7. OUR STRATEGY
Gafisa Strategy
Create the leading residential
development company in Brazil in
terms of sales, profitability and
product quality.
Superior Focus on Maintain land Geographic Product Financial and
revenue high-return bank of 2-3 diversification diversification investment
growth opportunities years of future discipline
sales
7
8. OUR PRODUCT LINES: MANAGEMENT FOCUSED ON EACH
MARKET
60% owned by Gafisa 60% owned by Gafisa
Mid, Mid-High and Own sales force
Low affordable entry
High Mid-High and High In São Paulo, Rio de
level
Vertical Horizontal (lots) Horizontal / Vertical Janeiro and Northeast
Region
Metropolitan areas Outside metropolitan Metropolitan areas and
areas outskirts Sales machine
Financing: Banks
Financing: Direct Financing: CEF and Management of sales
Unique Projects Banks channels and CRM
Unique Projects Standardized projects
Unit Price: > R$200K Management of
Unit Price: R$70K – Unit price: R$50K – outsourced and local
R$500K R$200K sales companies
8
9. OPERATING HIGHLIGHTS
Launches (R$ million) Sales (R$ million)
2005-2007 CAGR 75% 2,293 2005-2007 CAGR 90%
2,235 São Paulo
São Paulo 1,627 1,560
Rio de Janeiro 706 Rio de Janeiro
743
New Markets New Markets
635 610
467 995
562
1,005 263
575 399
652 498 450
1.200
340 931 230 219 686
239 540
186 140
126 268 201
80
2005 2006 2007 9M08 2005 2006 2007 9M08
Gafisa 69% Gafisa 67%
AlphaVille 9% AlphaVille 12%
Fit 21% Fit 19%
Other 1% Other 2%
9M08 9M08
9
10. ONE OF THE MOST GEOGRAPHICALLY DIVERSIFIED
HOMEBUILDERS
States in which Gafisa or its subsidiaries have already launched developments:
Diversified and high quality land bank, 222 sites throughout Brazil, 73%
acquired by means of swaps.
10
11. TENDA CONSOLIDATES GAFISA’S POSITION IN LOW INCOME
SEGMENT
As of October 2008, Gafisa holds 60% of shares in Tenda, a residential real estate
company exclusively focused on the low-income segment with its own sales force.
Tenda is separately listed on Bovespa under ticker TEND3.
October 2008 November 2008 - December 2008 2009
► New CEO hired on November 26: Carlos Trostli
► On October 21, Tenda’s
► Hiring process for the CFO position underway
EGM approved the
merger of Fit, Gafisa’s ► Business plan development
subsidiary, into Tenda. ► Strengthening relationship with public and
private commercial banks ► Business Plan
► As a result, Gafisa
Execution
holds 60% of the ► Integration of the financial and human resources
shares of Tenda + Fit. areas in progress
► Beginning of the ► Reviewing Commercial, Marketing and
integration process. Operations structures to identify potential
synergies
11
12. STRONG GROWTH IN MORTGAGE LENDING STILL DOES NOT
MEET PENT-UP DEMAND
Home Mortgages (R$ billion) Savings Account Balances (R$ billion)
CAGR (2003-2007): 43% 35.4 Balance in Oct-2008 was 18% higher than in Oct-2007
10.2
25.3
55%
6.9
16.3
57%
206
10.4 7.0 25.2
51% 187
15% 18.4
6.9
6.0 5.5 150
3.9 9.3 135
3.8 126
4.9 115
2.2 3.0
2003 2004 2005 2006 2007 Savings through Oct 2008 2003 2004 2005 2006 2007 Oct 2008
FGTS through Nov 2008
Financing with Funds from Savings
Financing with FGTS Funds
Sources: ABECIP, Central Bank of Brazil, CEF and FGV.
12
13. FUNDAMENTALS SUPPORTING RECENT REAL ESTATE GROWTH
CONTINUE
30% 65,000
60,000
25%
55,000
Loan availability at 20% 50,000
45,000
historically low rates and 15%
40,000
long terms 10% 35,000
30,000
5%
25,000
0% 20,000
dez-02
fev-04
dez-05
out-08
nov-04
mar-05
set-03
set-07
jun-04
abr-06
ago-06
abr-08
mai-03
mai-07
jul-05
jan-07
jan-08
jul-08
Interest Rate (Selic) Real Estate Credit (R$MM)
Source: Central Bank of Brazil
Housing deficit Pent-up demand for 7.8 million houses.
Source: Brasil Sustentável, Ernst & Young, 2008
13
14. GOVERNMENT SUPPORT FOR THE HOME BUILDING SECTOR IS
A PRIORITY
In October the government announced an additional R$10 billion available to
finance up to 20% of each development, at rates of TR+10% to TR+11%, within
the limits of 65% of savings balances which must be used for real estate
financing.
In December the FGTS Oversight Board announced new financing conditions:
• Builders– R$3 billion of FGTS to finance up to 80% of each development at
TR+7% per annum for properties up to R$130 thousand, and TR+9% over
this value
• Clients– interest rate decreases to TR+5% for workers with up to
R$2,000/month income (TR+4.5% if the worker has an FGTS account)
14
16. 2008 HIGHLIGHTS
Launches Sales
R$2.0 billion year to date R$1.3 billion year to date
Land bank Deliveries
R$7.8 billion PSV 20 Developments delivered
Figures as of December 8, 2008. 16
17. LAUNCHES
LAUNCHES TOTALED R$2.04 BILLION
Region Number of Launches Number of Gafisa Units PSV R$ MM
North, South, Center 6 514 198
Northeast 7 1,250 369
Cipesa 3 100 71
Rio de Janeiro 8 984 486
São Paulo 13 2374 918
Total 37 5,222 2,042
PSV R$ MM Units PSV R$ MM Units
SP Verdemar - Guarujá 44.4 80 NM (NSCO) Magnific (Goiânia) 30.5 27
Granja Viana 25.9 35 Carpe Diem (Belém) 32.5 63
Nova Petrópolis 108.5 268 Mistral (Belém) 34.0 140
Terraças Alto da Lapa 72.7 182 Ecolive (Curitiba) 40.4 122
Cond. Clube Barueri 152.0 677 Reserva do Bosque F1 29.3 79
Terraças Tatuapé 48.6 105 Reserva do Bosque F2 32.4 86
Montblanc 106.4 90
Alegria 78.9 278 NM (NE) Horto F2 (Salvador) 87.8 92
Details 53.5 38 Pablo Picasso (João Pessoa) 12.6 11
Patio Condomínio Clube 59.4 192 G Park Calhau (São Luiz) 15.0 75
Chacara Santana 62.8 150 Manhatthan (Salvador) 168.3 771
Brink 46.4 192 G Park Arvores (São Luiz) 12.1 75
Mandala (Fortaleza) 41.7 107
RJ Costa Maggiore 24.0 30
Carpe Diem 29.5 91 NM (Cipesa) Dubai (São Luiz) 31.8 120
London Green 54.7 140 Res. Pq Maceió (Maceió ) 11.6 63
Reserva Laranjeiras 61.8 108 Beira Mar - Nouvelle 27.1 12
Reserva Santa Cecília F 2 23.8 92 Beira Mar - Lumiere 32.1 25
Lagua Di Mare 57.5 108
Quintas do Pontal 79.5 91
Alphaville Barra 155.0 324
Updated up to December 8.
17
18. LAUNCHES
PARÁ – R$66.5 million
MARANHÃO – R$58.9 million
CEARÁ – R$41.7 million
PARAÍBA – R$12.6 million
ALAGOAS+SERGIPE– R$70.8 million
BAHIA – R$256.1 million
RONDÔNIA – R$61.7 million
RIO DE JANEIRO – R$486.2 million
GOIÁS – R$30.5 million
PARANÁ – R$40.4 million SÃO PAULO – R$918 million
18
19. IMPORTANCE OF LOCAL PARTNERS
Local market Local culture Access to local Access to Reduce Local
knowledge knowledge government business barriers to operational
bodies, opportunities entry support
reducing time
of appovals
19
21. DIFFERENTIATED BRAND POSITIONING
New institutional campaign
Research: Attributes which most motivate clients to purchase properties:
Honest and Keeps its Tradition Innovative and
Reliable promise Creative
21
23. CURRENT SCENARIO
Financial crisis has impact on real estate sales velocity
• Uncertain buyers;
• Unemployment;
• Financial health of homebuilders;
• Delivery capacity.
Measures adopted by Gafisa for launches:
• Launch only after reaching a pre-reservation that assures 50% of sales;
• Launches only after construction financing contracting is complete;
• Institutional campaign “Safe Purchase”.
23
29. GAFISA - CONSTRUCTION
Construction volume;
National reach;
Organization structure and recruiting;
Reduction of construction time;
Production management;
Eldorado.
29
30. CONSTRUCTION VOLUME
Monthly Area
VOLUME DE OBRAS Área Mensal
Total Area
Área Total
135 3100
130 3000
2900
125
2800
120
2700
115 2600
110 2500
2400
Monthly Built Area (x1,000 sq.m)
Total Built Area (x1,000sp.m)
105
2300
100
2200
95 2100
90 2000
1900
85
1800
80
1700
75 1600
70 1500
1400
65
1300
60
1200
55 1100
50 1000
Jun/08 Jul/08 Aug/08 Sep/08 Oct/08 Nov/08 Dec/08 Jan/09 Feb/09 Mar/09 Apr/09 May/09 Jun/09
30
31. NATIONAL REACH
AMAZONAS 3 sites with 57.3 thousand sq.m
RR
AP PARÁ 6 sites with 162.8 thousand sq.m
MARANHÃO 3 sites with 98.4 thousand sq.m
AM III
VIII CEARÁ 2 sites with 48.9 thousand sq.m
PA MA CE
PI V
AC
RO VI TO IV
BA
MT
BAHIA 6 sites with 324.1 thousand sq.m
MATO GROSSO 1 work with18.9 thousand sq.m
GOIÁS 4 sites with 108.4 thousand sq.m GO II
MS I
I São Paulo - 51 sites with 1,756.0 sq.m RIO DE JANEIRO 30 sites with 794.3 thousand sq.m
II Rio de Janeiro - 30 sites with 794.3 sq.m
PR SÃO PAULO 51 sites with 1,756.0 thousand sq.m
III Belém - 09 sites with 220.1 sq.m
PARANÁ 3 sites with 65.0 thousand sq.m
IV Salvador - 06 sites with 324.1 sq.m
SC
V Sergipe, Alagoas and PE – 05 sites with 189.2 sq.m VII
VI VII Goiânia - 10 sites with 221.7 sq.m
Maranhão, Piauí, Ceará, RN and Paraíba – 06 sites RIO GRANDE DO SUL 2 sites with 29.4 thousand sq.m
VIII
with 162.7 sq.m
31
32. ORGANIZATIONAL STRUCTURE – GAFISA CONSTRUCTION
Construction/
Engineering
Mário Rocha
People and Planning
Management Operations
Karine Oliveira Mario Merolli
DASSI
Ewerton Bonetti
SP, S, N and CO RJ and NE
Operations Operations Supplies Director Technical Director
Director Director Pércio Martins José Marmo
Sérgio Cincurá Gerson Sallum
32
33. RECRUITING QUALIFIED PERSONNEL - CONSTRUCTION
Lectures and fairs at SP and RJ universities
Internship program:
2008 – 49 hires
2009 – 75 graduates
Trainee Program:
2007 – 6 hired
2008 – 10 under training
Partnerships: SENAI, Sintraconstr, CREA.
Work with us: resumes posted on Gafisa’s
website.
Arte Campanha
33
33
34. REDUCTION OF LEAD TIMES
We reduced construction time by 180 days and project time by 120 days.
45 15 n 2 months 2 months
Launch -10 months
16 months
Conditions for Project Start-up Conditions for construction
A commitment to shortening the stages prior to A commitment to shortening the stages prior to
launch through: launch through:
• Faster incorporation • Earlier completion of initial construction
tasks (form, foundations, and sitework)
• Streamlining legal approvals (local
• Streamlining legal approvals (local
government)
government, fire department,
• Product standardization concessionaires, etc.)
• Faster construction techniques (example:
use of aluminum form)
34
37. PRODUCTION MANAGEMENT
Fill out FVP – Product Verification Cards
Tracking of recurring problems (critical)
Use of analysis tools (statistical database)
Action on causes
37
40. ALPHAVILLE HISTORY
1974 - 1995 1995 - 2007 2007...
► AlphaVille is founded ► Start of geographical ► Gafisa acquires control
by Construtora expansion
► 6 launches in 2007 and
Albuquerque, Takaoka
► AlphaVille present in 8 launches in 2008
13 states in 2007 through September
► 14 developments
launched in São Paulo ► In 2007, 116% growth
metropolitan area in launches and 70% in
sales over 2006
► Approximately 10
► Corporate Governance
million sq m built
– Management controls,
SAP, SOX, Investment
Committee
40
41. ALPHAVILLE CONCEPT
Typical AlphaVille project
Residential Area
► Transformation of large rural lots into high
quality urbanized lots, involving:
Special infrastructure – water and sewage
network, paving, sidewalks, lighting.
Residential Area
Leisure Area – sports club, parks.
Security – security plan, monitoring
systems, wall.
► AlphaVille Projects as a generating source
of local development – creation of new
business opportunities
► AlphaVille Foundation – concern for social
and environmental sustainability in the
Commercial Area AlphaVille Club Residential Area
surroundings of developments.
Multi-family Area
Commercial Center
Example AlphaVille Graciosa (Curitiba, Paraná)
41
42. ALPHAVILLE: STRATEGIC COMPETITIVE ADVANTAGES AND
SYNERGIES
► Largest urban developer
► Sole urban developer with national reach
► The company is focused on area identification,
development and commercialization of high quality
residential lots, targeting upper and upper middle class
families in the surroundings of metropolitan regions
throughout Brazil
► Strengths:
• Strong brand recognition throughout Brazil (Top of
Mind).
• Broad market experience and financial stability.
• Land bank acquired through swaps (no cash).
• Strategic land bank hard to be replicated.
• High growth potential with low risk.
• Huge operational synergies and cross-selling
opportunities within the Group’s companies.
42
46. PERFORMANCE INDICATORS
Sales vs. Launches Landbank vs. Launches
11,136
2,236 2,293
3.2
99% 1,627 1,560 2.6
2.2
69%
1,005 73%
69% 995 5,736
652 3,500
450 2,167 2,236
1,005
2005 2006 2007 9M08 2006 2007 2008
Launches (R$ million) Landbank1 (R$ millioin Landbank/Launches
Launches (R$ million) Sales (R$ million) Sales/Launches
¹Landbank at the end of the period
Gross Profit vs. Launches SG&A vs. Sales
2,236 2,293
16.1%
78%
69% 12.7%
1,218 6.8% 11.8%
1,195 10.4%
1,005 4.7%
697 54% 52% 5.2% 7.0%
652
513
9.3% 8.0%
5.2% 4.8%
2005 2006 2007 9M08 2005 2006 2007 9M08
General and Administrative Expenses/Pre-Sales
Launches (R$ million) Gross Profit Gros ProfitLaunches
Selling Expenses/Pre-Sales
46
47. GAFISA IS GROWING WITH INCREASING MARGINS
Gross Margin EBITDA Margin
35.0%
32.0%
17.2%
30.4% 15.7%
29.8% 14.8%
12.9%
2005 2006 2007 9M08 2005 2006 2007 9M08
Net Margin ROE3
11.3% 11.4%
9.7%
9.4%
1,689
1,531
11.4% 12.3% 10.2%
814
6.7% 300
2005 2006 2007 9M08 2005 20061 20072 9M08
Shareholders’ Equity ROE (LTM)3
¹ IPO in February 2006 with a capital increase of R$350 million; ² Follow-on in March 2007 with a capital increase of R$490 million
³ ROE = adjusted net income / shareholders’ equity
47
48. STRONG PRE-SALES POSITIVELY IMPACT BACKLOG OF
REVENUES TO BE RECOGNIZED
R$711 million of sales backlog (69% growth compared to 3Q07)
3Q08 2Q08 3Q07 3Q08 x 2Q08 3Q08 x 3Q07
Gross sales to be recognized 2,045.1 1,927.5 1,208.6 6% 69%
Sales, net of 3.65% sales tax, to be recognized 1,970.4 1,857.1 1,164.5 6% 69%
Cost of units sold to be recognized (1,259.9) (1,190.1) (743.5) 6% 69%
Backlog of results to be recognized 710.5 667.0 421.0 7% 69%
Backlog margin to be recognized 34.7% 34.6% 34.8% 14 pps 23 pps
48
49. INCREASED MORTGAGE PENETRATION
Pre-Sales Financed by Gafisa vs. Financed by Banks
16% 14%
34%
12%
54% 20%
32%
74%
30% 64%
34%
16%
2005 2006 2007 9M08
Gafisa financing longer than 36 months
Gafisa direct financing up to delivery of keys
Mortgage loans
Reduction in accounts receivable balances improves Gafisa’s working capital
Higher returns
Higher asset turnover
Better terms for clients with lower rates at longer terms
49
50. GAFISA’S SOLID FINANCIAL POSITION AND OPTIMIZATION OF
CAPITAL STRUCTURE SUPPORT EXPANSION
3Q08 2Q08
Total Debt 1,377 1,084
Obligation to Investors 300 300
Cash and Cash Equivalents 790 775
Net Debt & Obligation to Investors 887 609
Shareholders’ Equity 1,689 1,637
Total Capitalization 3,066 2,721
Net Debt & Obligation to Investors / Shareholders’ Equity 52.5% 37.3%
50
51. FINANCIAL HIGHLIGHTS
R$790 million in cash and cash equivalents, in addition to R$250 million in
receivables available for securitization.
R$3.5 billion in construction financing lines made available by Brazil’s largest
banks:
R$1.6 billion in signed contracts
R$1.2 billion contracts in progress
R$682 million in lines available
Ratings:
Moody’s: international Ba2 and local Aa3.br
Fitch: A(bra) local
Standard & Poor’s: BrA local
51
52. EVOLUTION OF SOX CONTROLS IMPLEMENTATION
As a company listed on the New York Stock Exchange (NYSE), Gafisa must comply with the
requirements of the Sarbanes-Oxley Act (SOX).
In 2007, when Gafisa was listed on NYSE, its Corporate Governance was evaluated
according to Article 302 of SOX. The evaluation was analyzed by PricewaterhouseCoopers,
which provided a letter of recommendations, which were quickly complied with. Such
documents are part of form 20F, filed with the U.S. Securities and Exchange Commission
(SEC) in June 2008.
For the financial statements with reference date on December 31, 2008, Gafisa shall judge
the effective operation of the environment of its internal controls (Article 404 of SOX), as
well as under the Corporate Governance perspective (Article 302 of SOX).
For that, Gafisa is testing the controls which guarantee the accuracy of its financial
statements and information disclosed to the market. The controls are also tested by our
certifiers, PricewaterhouseCoopers.
The opinion of Gafisa’s management and the opinion of our certifiers will be disclosed
through form 20F, to be filed with the SEC during the first half of 2009.
The implementation of SAP information system in 2008 was an important step in the
company’s operations management to meet SOX requirements.
52
53. 2008 OUTLOOK
2008 Launch Guidance:
R$3.5 Billion
► Equivalent to R$3.3 billion excluding
R$200 million of launches
corresponding to Fit in the fourth
quarter.
EBITDA Margin for 2008: 16%-17%
As of 4Q08, Gafisa’s financial
statements will consolidate 100% of
Construtora Tenda S.A., with the
results of the stake Gafisa does not
own flowing out through the
minority shareholders line of the
income statement.
53
54. CONSOLIDATED HIGHLIGHTS
Tenda Gafisa
Before Pro Forma
Gafisa Provisions(1) Consolidated(2)
Financial and Operating Highlights (R$000) 9M08 9M08 9M08
Launches (% Company) 2,293,032 1,396,665 3,689,697
Launches (Units) (% Company) 9,875 18,263 28,138
Pre-Sales (% Company) 1,559,656 891,618 2,451,274
Net Operating Revenues 1,149,879 504,629 1,654,508
Gross Profit 387,606 200,213 587,819
Gross Margin 33.7% 39.7% 35.5%
EBITDA 195,154 84,463 279,617
EBITDA Margin 17.0% 16.7% 16.9%
Ne Income 139,781 71,136 210,917
Net Margin 12.2% 14.1% 12.7%
Earnings per Share (R$) 1.08 1.63
Weighted Average of the number of shares 129,591,117 129,591,117
Backlog of Revenues (After Provisions) (3) 2,045 737 2,782
Backlog of Results (After Provisions) (3) 711 291 1,002
Backlog Margin 34.7% 39.5% 36.0%
Net Debt and Obligation to Investors (Cash) 886,822 -11,869 874,953
Cash 790,325 92,995 883,320
Minority Stake - - 267,832
Shareholders’ Equity After Provisions 1,688,596 669,580 1,688,596
Total Assets After Provisions 4,606,797 1,015,091
(1) Before Provisions Except: Backlog of Revenues and Results, Shareholders’ Equity and Total Assets.
(2) Pro-forma numbers were not reviewed and should not be considered for analysis.
(3) Backlog of results discounting 3.65% of the gross operating revenue related to taxes on sales.
54
