2. 2
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
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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
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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.
3. 3
Index
Opening Remarks and Estrategic Planning: Leonardo Nogueira Diniz | CEO
Operational Results: Rodrigo Martins | Commercial Officer
Financial Results: Rodrigo Medeiros | CFO and Investor Relations Officer
4. 4
2013-2015 Strategic Plan | Update
Strategic Plan Achievments 9M13
Focus
G&A G&A Expenses efficiency
Rossi Vendas Increase Rossi Vendas stake on the total sales
Financing
Transfers
Focus in house restructuring and transfer of financing
Construction Execution of 90% of the construction
Partners
Operation
Income Segment
Increase Rossi´s stake in the launches up to 95% of the
total PSV, excluding JVs Capital Rossi and Norcon Rossi)
Operations focused on 7 metropolitan regions (+JVs),
where it ranks among Top 3
Focus on medium-/high-income segments (average price
between entre R$ 200 k and R$ 1 million)
Land Bank
Disablement of the Land Bank outside from the launching
pipeline
Business Units
Search for financial/strategic partners for Urbanizadora
and Properties
Operational Cash Generation ex interest: R$ 199 MM
Net Income: R$ 39 MM
Decrease of 7% vs 9M12
% Rossi Vendas: 52%
Increase by 16% of Transfers vs 9M12
90% of the construction beginning in 2013 will be
done by Rossi
Rossi already executes 67% of the ongoing projects
New Asset Sales: R$ 78 MM
Sold its stake on North Shopping Joquei by R$ 80
MM (November)
New Launches:
São Paulo, Campinas, Aracaju, Porto Alegre,
Manaus and Belo Horizonte
Average Price: R$ 349 kl/unit
% Rossi (s/ JVs): 83%
Focus on cash generation and profitability
6. Norcon Rossi
(Aracaju/Recife)
23%
CapitalRossi
(Manaus)
22%
São Paulo
20%
Porto Alegre
13%
Rio de Janeiro
10%
Campinas
8%
Belo Horizonte
3%
Launches (% Rossi) 9Q13 | Metropolitan Region
From R$500k to
R$650k
31%
From R$200k to
R$350k
27%
Commercial
21%
From R$350k to
R$ 500k
12%
Above
750 k
9%
Launches % Rossi 9M13| Product Breakdown
6
Launches
R$ million
Product Breakdown (% Rossi) - 9M13Metropolitan Region Breakdown (% Rossi) – 9M13
New Launches:
In line with the Strategic Plan
Focus on cash generation and profitability
Metropolitan Region with proven track
record: São Paulo, Rio and Campinas
Focus on medium-/high-income segments
665
442
1.717
590
161
265
646
280
3Q12 3Q13 9M12 9M13
Launches |R$ MM
Rossi Partners
826
-14%
706
2.363
-63%
870
7. Conventional
60%
MCMV
20%
Low Income
15%
Commercial
5%
Vendas Brutas (% Rossi) 9M13 | Segmento de Renda
616 607
2.391
1.511158 169
728
430
3Q12 3Q13 9M12 9M13
Gross Sales|R$ MM
Rossi Partners
0%
3.119
-38%
1.941
7
Gross Sales
R$ million Product Breakdown (% Rossi) - 9M13
Metropolitan Region Breakdown (% Rossi) – 9M13Sales Speed (LTM)
¹ Low Income: average price between R$ 170 and R$ 200 k;
MCMV: Units launched in the Minha Casa Minha Vida Program.
60%
61%
55%
48%
58%
69% 67%
70%
4Q12 1Q13 2Q13 3Q13
Sales Speed (SoS) Finished Units SoS
Non-Strategic
Regions
21%
Porto Alegre
17%
São Paulo
15%
Campinas
11%
CapitalRossi
(Manaus)
8%
Rio de Janeiro
7%
Norcon Rossi
(Aracaju/Recife)
6%
Curitiba
6%
Brasília
5%
Belo Horizonte
3%
Vendas Brutas (% Rossi) 9M13 | Regiões Metropolitanas
8. Finished
66%
Under
Construction
34%
Rescisão (%Rossi) 9M13
Non-Strategic Regions: 21%
Brasília: 11%
Porto Alegre: 9%
São Paulo: 7%
Campinas: 6%
Curitiba: 5%
Rio de Janeiro: 3%
Belo Horizonte:1%
CapitalRossi: 1%
41% 38%
32% 34%
59% 62%
68% 66%
4Q12 1Q13 2Q13 3Q13
Rossi Vendas | Rescissions (%)
Rossi Vendas Other
8
Sales Cancellation
R$ million
Construction stage breakdown(% Rossi) | 9M13
Breakdown by Broker
323
177
777
468
80
51
208
135
3Q12 3Q13 9M12 9M13
Rescission |R$ MM
Rossi Partners
404
-44%
228
985
-39%
603
9. 9
Land Bank
Residential Developments:
Rossi´s PSV of R$ 8.8 billion, equivalent to
approximately 3 years of launches
Only land that passed the new feasibility tests as per
the company’s new standards was retained
Decrease of 4% in land disablement
Land Bank Breakdown
Product Breakdown (% Rossi)Metropolitan Region Breakdown (% Rossi)
Norcon Rossi
(Aracaju/Recife)
27%
Porto Alegre
18%
Campinas
16%
Rio de Janeiro
15%
São Paulo
11%
Belo Horizonte
5%
CapitalRossi
(Manaus)
4%
Brasília
3%
PSV Rossi | R$ PSV 100% PSV RR Units
Land Bank 20.489 15.438 76.468
Rossi Residencial 10.889 8.751 26.151
Disablement 2.583 1.871 11.401
Rossi Urbanizadora 7.016 4.817 38.916
R$ 350 to
R$ 500 k
26%
R$ 200 to
R$ 350 k
25%
> R$ 750k
20%
R$ 650 to
R$ 750k
17%
R$ 500 to
R$ 650k
11%