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The material that follows is a presentation of general background information about MRV Engenharia e Participações S.A. and its subsidiaries (collectively, “MRV” or the “Company”) as ofthe date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made concerning, and noreliance should be placed on, the accuracy, fairness, or completeness of this information.
This presentation may contain certain forward-looking statements and information relating to MRV that reflect the current views and/or expectations of the Company and itsmanagement with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate orimply future results, performance or achievements, and may contain words like “believe,” “anticipate,” “expect,” “envisages,” “will likely result,” or any other words or phrases of similarmeaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differmaterially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company nor any of its affiliates, directors, officers,agents or employees shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statementscontained in this presentation or for any consequential, special or similar damages.
This presentation does not constitute an offer, or invitation, or solicitation of an offer to purchase any securities. Neither this presentation nor anything contained herein shall form thebasis of any contract or commitment whatsoever.
The market and competitive position data, including market forecasts, used throughout this presentation was obtained from internal surveys, market research, publicly availableinformation and industry publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any material respect, we have notindependently verified the competitive position, market share, market size, market growth or other data provided by third parties or by industry or other publications. MRV does notmake any representation as to the accuracy of such information.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without MRV’s prior written consent.
36 years of history
• We have launched over 300 thousand units. MRV was also considered the company the has built the most in 2015, reaching 2.1 million sq. meters.
• 80 thousand keys were delivered in 2014 and 2015, with an important mark of 1 key delivered each 3 minutes.
• The most valuable brand in the sector, according to “Isto É Dinheiro” magazine.
• Present in 134 cities.
• 1 in each 250 Brazilians is a MRV client.
• More than 26 thousand employees, that together build 1 apartment in each 3 minutes.
• Certified company – ISO 14001, OHSAS 18001.
• GHG Protocol, Selo Verde and Lar Doce Lar seals.
MRV in the largest residential construction company in Brasil and one of the largest in the world, and during these 36 years we have achieved important goals.
• MRV grows and never forgets its compromise with the people and the environment. 4
36 years of history
53.000 units per year 25.000 units per year 40.000 units per year
ADRs Level1
MRV Foundation
Beginning ofrelationship
Start ofGeographic
Diversification
Enactment ofForeclosure / Deed of Trustby Financial Institucions
Banks Resume MortgageLending
Private Equity
IPO
1st NegotiationCorrespondant
Criação da MRV LOG
Equity Follow-On
MCMV 1
MCMV 2
MCMV 3
Shareholder Structure
Free float represents61% of shareholders’ equity.
444,139,684 common shares
* December 31, 2015
“Novo Mercado”, the highest level of Corporate Governance
BM&FBovespa Novo Mercado : MRVE3ADR OTCQX : MRVNY
MRVNY
Cusip code 553479106
ISIN code US5534791067
6
Rubens Menin T. de Souza 36%
Executives and Board Members
3%Treasury
Shares 1%
Orbis Investment Management Limited 10%
M&G Investment Management
Limited 4%
Janus; 5%
Other Shareholders 61%
Source : BCB, dez/14 e Itaú Presentation, set/15
78
60
53
41
37
31
22
24
11
10
USA
Netherlands
Spain
France
Germany
South Africa
Italy
Chile
Mexico
Brazil
Real Estate Financing as % of GDP
Mortgage
In Brazil there is a significant habitational deficit, with rising and strengthening of C social class.
High potential of credit expansion
in Brazil.
Fonte: FGV, OCDE, IBGE, Nações Unidades, EY8
Population per age
Age (years)
Million Million
Habitational investmentAnnual average in R$ billion, per income bracket, from 2008 to 2030
People per house
Years
Houses (million)
Population (million)
Habitational Investments per year
Period
New houses(million)
HabitationalInvestment(R$ billion)
HabitationalInvestment
(% GDP)
Competitive Advantages – Nationwide presence (134 cities)
In the past 10 years, we have grown in a consistent and organic way, based in solid market studies.
We have grown without losing identity , building skilled teams introduced in MRV culture.
We have entered this market to stay, it has been more than 3 years that we have presence in 114 cities out of total 134.
Act in strategic regions and with low competition;
Implementation of a standardized and industrial process;
Obtain economies of scale and cost savings;
Create entry barriers in the market we operate.
28
56 63
75
90
107 118 119
128 134
2006 2007 2008 2009 2010 2011 2012 2013 2014 201510
Source: *Study from Information and Statistics Center (CEI), from João Pinheiro Foundation.
In 3Q15, MRV achieved important marks among the listed companies:
74% of market share of launches in bracket II and III of MCMV Program;
42% of total launches in the year.
Demais empresas listadas11
Competitive Advantages – Leader in the Brazilian market
Launches Eligible to MCMV(R$ billion) (Groups II and III)
7.7
10.8
8.5
6.76.1
5.2 5.1
7.4
10.5
7.6
4.63.3
4.05.1
2009 2010 2011 2012 2013 2014 2015*
MCMV (Groups 1, 2 and 3) MCMV (Groups 2 and 3)
Note: The data are estimated and based on the listed Companies’ earnings releases.
% of launches in MCMV Program (Brackets II and III) – in PSV
Sales channels:
We have over 3,000 internal brokers, focused in 100% of MRV products. We invest in training and sales techniques to enhance the productivity and quality of the sale process.
Management of commissioning policies of internal team and definition of sales strategy.
12
Competitive Advantages – Structure of Sales
75% 77%81% 83% 84% 86% 83% 82%
25% 23%19% 17% 16% 14% 17% 18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
Internal brokers
Third parties
Investiment in Marketing:
2 REACH
1 ANNUAL INVESTIMENT
3 MAIN CHANNELS
140 Million of Brazilian (70% of population)
R$ 100 Million
TV 26%, Internet 20%, Trade MKT 19%, Newspaper 5%,Other midias: 30%
R$ 2 Bi in virtual sales per year.
130 virtual attendant focused in high quality attendance located in Belo Horizonte.
1.100 brokers focused in attending prospects that have initiated contact through internet segregated in
80 virtual bases all over Brazil.
Results from Investiments:
13
Competitive Advantages – Effective Market
Sources: Google Analytics, MRV website, Blog, AppFacebook, App Android, App IOS and hotsites.
Corporate
website
14
Competitive Advantages – Online leadership
Relationship PortalGeneral Acesses:
2.400.138Year
55.230Number ofAnsweredCallsMonthly Average
Costumer Service
“Conexão MRV”
+154.837
Views of the videos“Conexão MRV”
#MeuMundoMelhor
+4.000.000
Views of the vídeos #MeuMundoMelhor
Complaints:
0,40%*
Year 2015
MRV in Midias
300.584 followers in Twitter
580.322 followers in Google +
2,7 milhões Facebook fans
*Number of ompalints over total clients (5 years) – Annual view
Competitive Advantages – Client Relationship
15
Resolved demands on 1st contact
90.34%Year
Client Access:
62,700Monthly Average of Single
Calls
COMPETITIVE ADVANTAGES
• Presence of a team responsible for prospection and legalization• Knowledge and assertiveness in acquisitions• Capacity of purchase in strategic locations• Speed in the legalization process
Operacional Advantages – Landbank
Landbank (in units) Landbank (in R$ billion)
COMPIANT CITY *
• Highlight to the growth of compiant cities. The purchases have been donestrategically in cities with potential demand and that will generate growth.
• New acquisitions are focused in balancing the inventories and present cost reductionof 15% in 2015.
*Compiant city is a city that has a sufficient inventory to ensure the estimated sales pace for the region is attained, i.e., the estimated potential for the city;
179.970
201.878 219.061
dez/14 set/15 dez/15
22%
9%
27,8
32,1
34,8
dez/14 set/15 dez/15
25%
9%
18
Approximately 24,000 people dedicated to Production
The employees holding leadership positions (officers, managers,
and coordinators) have worked, on averages, 9 years at MRV.
Currently we have 225 works in progress, in following locations:
Northeast 38 (16.9%)
Mid-west
15 (6.7%)
South 27 (12.0%)
Southeast 145 (64.4%)
10
Officers
21 Managers
42 Coordinators
291 Engineers
316 Engineering Assistants and
Building Technicians
461 interns
24,916 other positions, including 14,654 own
and 10,262 outsourced workers.
Operacional Advantages – Experienced production team
Operacional Advantages - New Technologies
Hydraulic Kit
Reduced workforce
Less generated waste
Greater production rationalization
Better site organization
Standardized projects
Higher speed of production
Strategic team of equipment
Simplification of projects
Economically viable
Greater environmental sustainability
Increased work security
Standardization, Mechanization and Intelligent Processes
ConcretePrefabricated and
standardized door
Aluminium Forms Hoisted Slab
20
Operacional Advantages - Cost Improvement
Anos Nº dados MédiaDesvio
Padrão
Coeficiente
de Variação
2012 76 30,84 5,491 17,8%
2013 117 29,26 3,918 13,4%
2014 98 29,99 4,785 16,0%
2015 66 28,19 4,083 14,5%
It is possible to identify a decrease in
average cost, the lowest of the past four
years. Our change also decrease by
comparing 2012 to 2014. That is, our works
are getting more consistent, with a lower
cost.
Years Sample Average Stand.
Deviation
Coef. of
Variation
Boxplot of the Sum of the projection cost
Su
m o
fth
evalu
eo
fp
roje
ctio
n
co
st
Histogram of the Sum of the projection cost
Fre
qu
en
cy
Year
Sum of projection cost value
IP (Productivity Index): Shows how many
people are necessary to build one unit. The
guideline is the lower the indicator the
better the result.
VP (Production Speed): Shows the POC
per month of the works in progress. The
guideline is the higher the indicator the
better the result.
Increase in production capacity, reflecting a 12.5% decrease in IP (Productivity Index) when comparing 2015 to
2013.
29.4% increase in the VP (Production Speed), comparing the same years.
Up to Sep 2015 we built more than 3,000 units.
Operacional Advantages - Execution
26,1%26,6%26,6%
26,2%26,4%
27,8%28,2%
30,3%
29,5%29,2%
31,0%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Highlight to the evolution of Gross Margin due to:
• Renegotiation with Suppliers• Productivity Increase (PI)• Reduction of discrepancy between projects• Better conditions for land purchase.
23
Operacional Advantages – Gross Margin
Note: 1 - Tecnisa and Eztec do not release the amount od delivered units.2 – Units presented in (‘000) units.
Operacional Advantages – Delivered untis
24
Delivered units – 9M15
Delivered units – 2014
• R$ 4.8 Billion in payments in 2015
• 55 thousand Invoices received per
month
• 18 thousand Employees paid per
month
• 285 Employees
SSC – Shared Service
Center
• + 4.8 million views of
#MeuMundoMelhor videos.
• + 3.6 million acesses to the
Relacionship Portal in 2015
• + 640 thousand estimated calls
answered in 2015
• 130 employees
• 260 thousand active clients
• R$ 450 million collected per
month
• + 2,000 current accounts
reconciled per month
• + 3,000 new registered contracts
per month
• 295 employees
• R$ 86 million of investiment in IT
(5 years)
• 10,000 IT users
• 15 million of scanned documents
• 99 employees
Operational Advantage - Administrative Structure
Lower
G&A/Net
Revenue in
the sector
Client Relationship
and Internal
Comunication
Information of
Technology
Specialized Services
• Rental in Belo Horizonteis cheaper than other capitals
• Skilled workers• Lower competition 25
Productivity - G&A / Net Revenue – 9M15
13,21%
12,65%
11,75%
11,72%
9,40%
8,70%
8,28%
7,50%
6,75%
5,69%
ROSSI
EZTEC
PDG
TECNISA
CYRELA
EVEN
GAFISA
HELBOR
DIRECIONAL
MRV
8,9%
7,9%
7,4%
5,9%
5,0%
4,8%
8,9%
7,9%
7,4%
5,9%
5,0%
4,8%
8,9%
7,9%
7,4%
5,9%
5,0%
4,8%8,9%
7,9%
7,4%
5,9%
5,0%
4,8%
2.32x
2.22x
2.07x
2.06x
1.65x
1.53x
1.46x
1.32x
1.19x
Due to our Strong and efficient operation, we are able to dilute expenses and present the best G&A/Net
Revenue ratio in the sector.
Average from peers10.02%
26
Operational Advantage – Efficient Administrative Structure
Financial Advantages – “Crédito Associativo”
Since the beginning of simultaneous sales, MRV has considerably decreased the collection period, contributing to
less working capital need per launched Project.
28
-20%
-10%
0%
10%
20%
30%
40%
1T 2T 3T 4T 5T 6T 7T 8T 9T 10T 11T 12T 13T 14T 15T 16T 17T 18T 19T 20T 21T 22T 23T
Associativo 2015
Individual
Associativo < 2015
Individual < 2015
Aquisição do Terreno Lançamento Início Obra Fim ObraLand acquisition Project startsLauchi
ng
Project ends 257
233
210197
189 184
165
124113
91
60
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Working Capital need (in days)
446 442431
416401
391 388378
345
319
292
268
2012 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Average Collection Period
-70 -8 1238
62
116
208
162
56
138 136
238
147 154
258
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Cash Generation (R$ million)
Highlights:
Greater corporate rating in the sector (brAA-) by Fitch and Standard & Poor´s.
Enhancement of systems and processes from CEF in 2011 → benefits since 2012;
Growth of operations from BB in “Crédito Associativo” model, started in 2013.
Financial AdvantagesConsistent Cash Generation and low leverage
3 years of recurrent generation
29
14,0%
16,7%
13,6%15,6%
21,7%19,3%
25,6%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Cash Yield - 12M
MRV
11,0%12,2% 11,5%
12,2%
15,5%14,4%
19,0%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
EPS Yield 12M
MRV
Consistency and stability of the Company’s yields
Average
quarterly
growth: 8.1%
Average
quarterly
growth: 12,6%
Average
quarterly
growth: 9,1%
Average
quarterly
growth: 3,2%
Nota: ROE excluindo equivalência patrimonial
30
2,62%2,9% 2,7%
4,70%
5,8%5,3%
6,0%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Dividend Yield – 12M
MRV
10,7%10,4%
11,0%
11,8%
12,4%
13,2%13,3%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
ROE – 12M
MRV
35
0 51
1
34
3 18
5
14
8
14
5
15
4
-81
31
-25
8
-30
740
8
35
0
34
0
11
2
11
2
93
41 39
35
-37
8
-79
5
MRV CYRELA EZTEC EVEN TECNISA DIRECIONAL HELBOR TENDA GAFISA ROSSI PDG
Lucro Líquido (R$ milhões)
9M14 9M15
Indicadores Financeiros
32
Net Income (R$ million)
Net Margin (%)
Landbank with PSV of R$2.1 billion;
140 commercialized units in 3Q15, equivalents
to a PSV of R$10.7 million;
SOS of 24% in 3Q15
Highlight to 2Q15 for the success during the
launching of “Bem Viver Campos” with 52% of
total units sold during the 1st month after
launch.
Equity: R$ 24 million
MRV share: 60%
Portfolio %LOG (in GLA) – 1,267,099 sqm of GLA
Rented GLA in 9m15 – 130,000 sqm (%LOG)
Number of projects: 39
Net Revenue 9M15: R$69 million
Adjusted Ebitda 9M15: R$54 million
Equity: R$1.5 Billion
MRV share: 38%
3Q15 3Q15
Subsidiaries
34
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