Reuniao publica ingles.pdf

1

Public Meeting with Investors and Analysts

9M12 Results Presentation December 14, 2012

Participants

Cristiane Crisci | Chief Market Intelligence, CRM and GPN Officer

Cyro Naufel Filho | Chief Customer Service Officer

Rodrigo Manso | Executive Manager of Planning and Investor Relations

Thiago Piffer | Investor Relations Coordinator

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Disclaimer

This presentation does not constitute an offer, invitation, or solicitation of any kind, to subscribe to or purchase stock or

another financial instrument, nor does this presentation or any information contained herein form the basis for any type of

contract or commitment.

The material that follows contains general business information about LPS Brasil – Consultoria de Imóveis S.A (“LPS” or

“Company”) for the quarter ended September 30, 2012. It is not intended to be relied upon as advice to potential investors.

The information does not purport to be complete and is in summary form. No reliance should be placed on the accuracy of

the information presented herein and no representation or warranty, express or implied, is made regarding the accuracy of

the information presented herein.

This presentation contains forward-looking statements, which are merely predictions and not guarantees of future

performance. Investors are cautioned that these forward-looking statements are and will be subject to numerous risks,

uncertainties, and factors related to the operations and business environments of LPS Brasil, such as competitive

pressures, the performance of the Brazilian economy and the real estate sector, and changes in market conditions, among

other factors, disclosed in disclosure documents filed by LPS Brasil. Such risks may cause the actual results of the

Company to be materially different from any future results expressed or implied in such forward-looking statements.

LPS Brasil believes that based on information currently available to LPS management, the expectations and assumptions

reflected in the forward-looking statements are reasonable. LPS Brasil cannot guarantee future events or results. Finally,

LPS Brasil expressly rejects any obligation to update any of the forward-looking statements contained herein.

2

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Agenda

Highlights

Operating results

Credipronto! | Mortgage loans

Financial results

LPS Brasil Market Intelligence

Performance of real estate sector in São Paulo

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

9M12 Highlights

Maintenance of the company’s volume of launches despite the 25% decrease in the market’s volume of launches in 9M121

Total transactions closed of R$ 13.8 billion, up 9.1% from 9M11

• R$ 10.5 billion in the primary market (+5.0%)

• R$ 3.4 billion in the secondary market (+24.2)

Increase in the share in secondary market to 24% of total transactions closed (21% in 9M11)

Net revenue of R$ 309 million, up 11.0% from 9M112

EBITDA of R$ 110 million, up 30.2% from 9M112. EBITDA Margin of 36% in 9M12

Net income of controlling shareholders before IFRS of R$ 68 million, up 37.1% from 9M11

R$ 1,063 million in mortgage loans originated by Credipronto! (+18.8%)

5 1) Source: Lopes Market Intelligence. Considers vertical residential projects, business units and flat/hotels launched in the most important regions of Brazil. 2) Ignores earn out receipt in

2011

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Agenda

Highlights

Operating results


Financial results



(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Launches in the real estate sector1

(billion)

Launches LPS Brasil (million)

Performance of launches | Real estate sector vs. LPS Brasil

51.0

38.0

9M11 9M12

25.5%

17.3 17.0

9M11 9M12

1.7%

7

Relationship with more than 300 property

development clients, between listed and

unlisted companies

1) Source: Lopes Market Intelligence. Considers vertical residential projects, business units and flat/hotels launched in the most important regions of Brazil.

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Transactions closed

8

Transactions closed

(million)

Breakdown of transactions closed (%)

Units (#)

10.003 10.503

2.719 3.376

9M11 9M12

Primary Market Secondary Market

24.2%

5.0%

12,722 13,880

+9.1%

79% 76%

21% 24%

9M11 9M12


36.363 35.333

5.737 7.508

9M11 9M12


30.9%

2.8%

42,100 42,841 +1.8%

The highlight was the increase in the share

of secondary market in total transactions

closed

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Transactions closed

9

Transactions closed | by price range (%)

Transactions closed | by region (%)

11%

35%

23%

31%

< 150 150-350 350-600 > 600

8%

31%

26%

35%

< 150 150-350 350-600 > 600

9M11 9M12

48%

21%

8%

12% 6% 6%

São Paulo Rio de Janeiro

Brasília South Region

Northeast Region Others

50%

21%

4% 13%

5% 6%

São Paulo Rio de Janeiro Brasília

South Region North Region Others

61% mid-high

and high

income

54% mid-high

and high

income

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Transactions closed

10

Transactions closed | by region | Primary market (%)

Transactions closed | by region | Secondary market (%)

9M11 9M12

55%

14% 4%

19% 4% 5%




61% 12%

4% 15%

3% 5%




46%

23%

9%

10% 6% 6%




47%

24%

4% 13%

6% 6%




(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

No

Develop.

47%

28%

24% 44%

35%

21%

Transactions closed

11

Transactions closed | primary market (listed and unlisted property developers) and secondary market (%)

Transactions closed | primary market Concentration of the 10 largest property development

clients

9M11 9M12 secondary

market

secondary

market

unlisted property developers

listed property

developers

unlisted property developers

listed property

developers primary market | 79%

Transactions closed | primary market Concentration of the 5 largest property development clients

primary market | 76%

49% 53% 56% 54% 57%

51% 47% 44% 46% 43%

2010 2011 1Q12 2Q12 3Q12

10 largest property

development clients

Others

292 301 236 272 308 7.6%

9.5% 8.9% 6.2%

12.2%

7.1% 5.3% 6.2%

6.1%

4.9% 6.1% 5.2% 5.0%

5.6%

4.4% 6.1% 5.1% 4.4%

5.3% 4.4%

4.7% 4.0% 4.1% 5.1% 3.6%

2010 2011 1Q12 2Q12 3Q12

1º 2º 3º 4º 5º

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Agenda

Highlights

Operating results


Financial results



(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Credipronto! | Highlights

Increase of 18.8% in mortgage loans granted, which totaled R$ 1,063 million in 9M12

Increase of 3.1% in contracts signed, for a total of 3,464 contracts

Average loan-to-value ratio (LTV) of 58.02% in 3Q12

Average rate of 9.3% + TR (Reference Rate) in 3Q12

Average term of 311 months in 3Q12

13

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Jun/1

0

De

c/1

0

De

c/1

1

Jan/1

2

Feb

/12

Ma

r/12

Apr/

12

Ma

y/1

2

Jun/1

2

Jul/12

Aug/1

2

Sep/1

2

Credipronto!

14

Mortgage loan origination (million)

Mortgage loan portfolio 9M12 (%)

Evolution of market share (%)1

Evolution of origination (base 100 = Jan/10)2

895 1.063

9M11 9M12

+18.8%

1.768

2.492

Opening balance Closing balance

+41.0%

0.4

0.7

2.5

1.8

Evolution of closing balance of portfolio (billion)

CAGR: 7% p.m.

Mkt share Credipronto! (private banks) Mkt share Credipronto!

Credipronto! Market

1) Source: Brazilian Central Bank 2) Source: ABECIP

100

168 177 245 241

376 411

432

370

433 416

125 145 147

144 179

209 198 189 209

243

1.4% 1.9% 1.7% 2.4% 2.4% 3.0% 2.8% 3.1% 2.8% 3.0% 2.4%

4.7% 5.8% 5.1%

6.1% 5.7% 7.3% 6.4% 6.8% 6.9% 7.4% 7.5%

-15,0%

-10,0%

-5,0%

0,0%

5,0%

10,0%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Agenda

Highlights

Operating results


Financial results



(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Net commissions

16

Net commissions | Brazil (consolidated)

(%)

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

São Paulo 2.9% 3.0% 2.9% 3.1% 2.8% 3.1% 3.0%

Habitcasa1 1.9% 1.9% 2.1% 2.1% 2.0% 1.9% 2.1%

Rio de Janeiro 2.2% 2.0% 2.2% 2.1% 2.1% 2.1% 2.0%

Others 2.1% 2.1% 2.1% 2.1% 2.1% 2.0% 2.1%

Primary market

(%)

Secondary market

(%)

2.3% 2.4% 2.4% 2.4% 2.3% 2.4% 2.4%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

São Paulo 2.2% 2.3% 2.3% 2.4% 2.2% 2.2% 2.4%

Rio de Janeiro 2.4% 2.5% 2.4% 2.3% 2.3% 2.0% 2.3%

Others 2.1% 2.4% 2.4% 2.5% 2.3% 2.5% 2.1%

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

314.8 352.7

23,5

9M11 9M12

Financial results | consolidated

17

Gross revenue

(million)

Net revenue (million)

EBITDA and EBITDA Margin (million)

12.0%

Operating expenses (million)

338.2

Earn out Itaú

278.6 309.1

23,5

9M11 9M12

11.0%

302.1 Earn out Itaú

84.2 109.6

22.6

9M11 9M12

106.8

30.2% Earn out Itaú

30,2% 35,5%

EBITDA

margin

184.7 186.9

10,5 12,5

9M11 9M12

Lançamentos+Pronto! Credipronto!

2.2%

195.3 199.5

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

49,3 67,6

21,1

9M11 9M12

Financial results | consolidated

18

Net income attributable to

controlling shareholders before IFRS impacts (million)

37.1%

70.4

Earn out Itaú

Net income attributable to

controlling shareholders after IFRS impacts (million)

64,8 76,5

21,1

9M11 9M12

18.1% Earn out Itaú

85.9

IFRS impacts | Net income before share of non-controlling shareholders (thousand)

Description Before IFRS Effects of IFRS After IFRS

Net operating revenue 309,114 309,114

Costs and expenses -199,481 -199,481

Depreciation and amortization -12,503 -29,713 -42,216 (1)

Financial result 15,351 33,192 48,543 (2)

Operational profit 112,482 3,479 115,961 (1+2)

Income tax and social contribution -26,973 -5,858 -32,831 (3)

Net income 85,508 -2,379 83,129 (1+2+3)

Non-controlling shareholders -17,860 11,217 -6,643 (4)

Net Income attributable to controlling shareholders 67,649 8,838 76,487 (1+2+3+4)

1) Amortization of intangible assets.

2) Combined effect from: i) Gains and losses on the non-

cash net effects from the booking of call and put options at

subsidiaries, based on the fair value of prospective

estimates, and ii) non-cash correction/write-off of

installments of earn outs payable.

3) Deferred income tax on intangible assets of LPS Brasil.

4) Effects related to deferred income tax and intangible

assets amortization on non-controlling shareholders.

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Agenda

Highlights

Operating results


Financial results



(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Market Intelligence, CRM and GPN | Competitive advantages

1

2

3

4

5

6

7

8

9

10

11

Land potential study

Study of supply

Market bulletins

Market dashboards

Register of products | since imminent launch > site visibility and Lopesnet > e-mail marketing

Campaigns | e-mail marketing > active supply > direct mail > acquisition of mailing

Online | chat > more information

Lead forwarded by property

developer

After sales

Client survey and profiles | stand survey > survey of registration deed > ad hoc survey

Property buyer confidence index (ICCI)

20

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Market Intelligence and CRM | Competitive advantages

2011 Year Book of the Brazilian Real Estate Sector

• Pioneering survey held by Lopes found that

launches in the main markets of Brazil totaled

R$ 86 billion in 2011 .

• Sample consisting of 1,345 vertical residential

projects, business units and flat/hotels

launched in 61 municipalities and 7 satellite

cities.

MR

SP

Gre

ate

r R

J

DF

Salv

ad

or

Cu

ritib

a

BH

Goiâ

nia

P.A

leg

re

Santo

s

Fort

ale

za

Na

tal

Vitó

ria

Ca

mpin

as

Flo

rian

ópo

lis

Re

cife

Oth

ers

Launch value by Market | Brazil 2011 (million)

85,644 million

Total Brazil

30.5

9.7 6.7

4.1 3.8 3.1 2.7 2.5 2.1 1.7 1.6 1.1 0.9 0.9 0.8

13.4

21 Source: Lopes Market Intelligence

http://2.bp.blogspot.com/-Bfz3We6Ms4o/T4XNlXU5nuI/AAAAAAAAATE/4XU0KQne7uM/s1600/20120408_Epoca_Os_Bairros_Mais_Cobicados_do_Brasil-1.jpg

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

2011 Year Book of the Brazilian Real Estate Sector | Launches by region

Brazil | 2011

22 Source: Lopes Market Intelligence

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Property buyer confidence index (ICCI)

Evolution of ICCI

153,4

130,5 131,6

147,8

134,4

127,5

125,2

134,6

115,5

124,5

118,9

121,4

80

90

100

110

120

130

140

150

160P

on

tos

Índice de Expectativas (IE) IE com ajuste sazonal

Índice de Confiança do Comprador de Imóvel (ICCI) ICCI com ajuste sazonal

Índice da Situação Atual (ISA) ISA com ajuste sazonal

Evaluation:

Brazilian economy

Financial situation of households

Intention to buy property

Moment:

Present

Next 6 months

23

Source: Lopes

Market

Intelligence

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Survey| Report in Exame magazine

Brazilians buy, on average, 1.8 real estate units during their lifetime

24 Source: Lopes Market Intelligence and Exame Magazine

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Survey| Report in Exame magazine

Brazilians buy, on average, 1.8 real estate units during their lifetime

25 Source: Lopes Market Intelligence e Revista Exame

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Agenda

Highlights

Operating results


Financial results



(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Launches by Lopes in the Metropolitan Region of São Paulo (MRSP)

Metropolitan Region of São Paulo

(projects launched)

Market share of 27% (Lopes Group)

Launches totaling R$ 87 billion (restated)

More than 1,300 projects

launched in the past 15 years 27

Source: Lopes

Market

Intelligence

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Evolution of launches in the real estate sector in the metropolitan region of São

Paulo (MRSP)

5 6 4 4 5 5 7 8 8 10 13

19 20 16

25 31

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Nominal value of launches | Metropolitan Region of São Paulo1

(billion)

Units launched | MRSP1 (thousand)

59 70

33 35 40 35 34 37 29

35 37

67 69 59

80 81

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

28

28 1) Source: EMBRAESP. Prepared by: Lopes Market Intelligence

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Seasonality of launches in the real estate sector in the metropolitan region of São

Paulo (MRSP)

Value of launches per month | nominal

(billion)

0,4

1,1

2,0

1,4 1,8 1,6

1,3

1,8

2,7 2,5

3,0

5,7

0,5

2,0

1,3

2,3 2,6 2,7

2,1

3,0

1,9

2,7

3,4

6,6

0,5

1,0

1,9

1,1

2,3 2,4

1,7

1,5

3,0

2,5

jan feb mar apr may jun jul aug sep oct nov dec

2010 2011 2012

1st half | approx.: 35% 3rd quarter | approx.: 25% 4th quarter | approx.: 40%

29 Source: EMBRAESP. Prepared by : Lopes Market Intelligence

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Inventory of apartments | São Paulo city

Inventory over Launches in the past 3 years

(vertical residences in units)

Inventory of apartments in São Paulo is low: 14% of launches in the past 3 years

3 years

30 Source: Lopes Market Dashboard

Date

of Collection

No. of

Projects

Launch

Period

Apartments

Launched

Apartments

Sold

Apartments

in Inventory

%

Inventory

apr/08 801 Apr/05 - Mar/08 76,087 58,587 17,500 23%

oct/08 831 Oct/05 - Sep/08 89,500 71,600 17,900 20%

apr/09 819 Apr/06 - Mar/09 96,316 78,016 18,300 19%

oct/09 816 Oct/06 - Sep/09 98,824 82,024 16,800 17%

apr/10 769 Apr/07 - Mar/10 104,480 92,880 11,600 11%

oct/10 739 Oct/07 - Sep/10 105,052 94,618 10,434 10%

apr/11 709 Apr/08 - Mar/11 102,093 92,107 9,986 10%

oct/11 729 Oct/08 - Sep/11 104,017 92,917 11,100 11%

apr/12 769 Apr/09 - Mar/12 112,170 97,173 14,997 13%

oct/12 766 Oct/09 - Sep/12 108,916 93,897 15,019 14%

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Real estate development opportunities

Districts in São Paulo

Verticalization of 28% in São Paulo: real estate development opportunity in several districts

31

Source: Lopes

Market

Intelligence

(128, 128, 128) (255, 225, 225) (192, 192, 192) (0, 0, 102) (128, 0, 0) (154, 186, 222) (234, 234, 234) (243, 250, 255)

(255, 128, 128) (255, 204, 153)

Real estate development opportunities

Future launches situated within a radius of 1 km from existing and future subway stations and lines

67% of future launches are situated within a radius of 1 km from an existing or future subway line

32

Source: Lopes

Market

Intelligence

33

Public Meeting with Investors and Analysts

9M12 Results Presentation December 14, 2012

Participants

Cristiane Crisci | Chief Market Intelligence, CRM and GPN Officer

Cyro Naufel Filho | Chief Customer Service Officer

Rodrigo Manso | Executive Manager of Planning and Investor Relations

Thiago Piffer | Investor Relations Coordinator

Reuniao publica ingles.pdf

Documents

Transcript of Reuniao publica ingles.pdf