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1Q12 Presentation
Presenters
Francisco Lopes – COO
Marcello Leone – CFO and IRO
Bruno Gama - COO CrediPronto!
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This presentation does not constitute or form part of any offer, or invitation or solicitation of any offer to purchase,
sell or subscribe for shares or other securities of the Company, nor shall this presentation or any information
contained herein form the basis of, or act as inducement to enter into, any contract or commitment whatsoever.
This presentation contains financial and other information related to the business operations of Lopes –LPS Brasil
Consultoria de Imóveis S.A and its subsidiaries (“LPS” or the “Company”) as of and for the period ended March
31st 2012. It should not be considered as a recommendation for prospective investors to sell, purchase or
subscribe for securities of the Company. The information presented herein is in summary form and does not
purport to be complete. No reliance should be placed on the accuracy completeness of the information
contained herein, and no representation or warranty, express or implied, is given on behalf of the Company or
its subsidiaries as to the accuracy completeness of the information presented herein.
This presentation contains forward-looking statements. Investors are advised that whilst the Company believes
they are based on reasonable assumptions by Management, forward-looking statements rely on current
expectations and projections about future events and financial trends, and are not a guarantee of future results.
Forward-looking statements are subject to risks and uncertainties that affect or may affect business conditions
and results of operations, which therefore could materially differ from those anticipated in forward-looking
statements due to several factors, including competitive pressures, Brazilian macroeconomic conditions,
performance of the industry, changes in market conditions, and other factors expressed or implied in these
forward-looking statements or disclosed by the Company elsewhere, factors currently deemed immaterial.
The forward-looking statements contained herein speak only as of the date they are made and neither
Management, nor the Company or its subsidiaries undertake any obligation to release publicly any revision to
these forward-looking statements after the date of this presentation or to reflect the occurrence of unanticipated
events.
Forward-looking statements
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Program
I. Highlights
II. Operational Results
III. Credipronto!
IV. Financial Results
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Highlights
Highlights
5 *We consider now the EBITDA, excluding other operating expenses (revenues), that considers IFRS non-cash, as the company performance indicator. We recalculated all previous EBITDAs in the same way. This will be our
standart from now.
Best first quarter in the company’s history, with sales of R$4.0 billion;
PSV launched in the quarter reached a historic record of R$3.6 billion, growing 14% over the 1Q11;
Net revenue of R$88.4 million, up 14% from 1Q11;
EBITDA 39% higher than 1Q11, achieving R$25.2 million; 54% growth in CrediPronto! origination from 1Q11, with R$322 million in mortgage loans in 1Q12;
Conclusion of three acquisitions in the quarter: LPS Foco, LPS Piccoloto and LPS Cappucci.
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Operational Results
Contracted Sales
(R$ million)
Contracted Sales
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Units Sold
In This Quarter, We Achieved Our Best First Quarter in Contracted Sales.
+15%
1Q12
4,003
3,044
0,959
1Q11
3,479
2,804
0,674
Primary Market
Secondary Market
+5%
1Q12
12,708
10,310
2,398
1Q11
12,046
10,659
1,387
Sales Speed over Supply
Lopes' Consolidated Sales Speed
*Informações Gerenciais O VSO é calculado com base nos valores de VGV vendido mediante estoque e lançamento, e foi apresentado o número médio de cada ano.
Habitcasa’s Sales Speed
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1Q12
21.6%
4Q11
16.2%
1Q12
35.3%
4Q11
39.6%
Units Sold
Contracted Sales
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Total units sold = 12,708
Total Contracted Sales = R$ 4,003 million
Sales by Income Segment – Primary and Secondary Markets
25%
23% 39%
12%
1Q11
35%
24%
31%
10%
1Q12
6%
47%
15% 31%
>600 <150 150-350 350-600
9%
35%
13% 43%
1Q11 1Q12
Contracted Sales
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Contracted Sales by Geographic Region – Primary and Secondary Markets
11%
50%
12%
18%
9%
12%
51%
11%
4%
22%
Brasília Sul Others Rio de janeiro São Paulo
1Q11 1Q12
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Breakdown of Contracted Sales
1.0 (24%)
1.3 (32%)
1.8 (44%)
(R$ BI)
Primary Market
50% 44% 42%
50% 56% 58%
2010 2011 1Q12
Breakdown – Contracted Sales 1Q12
Secondary Market Non-Listed Homebuilders Listed Homebuilders Top 10 clients
+14%
-34%
1Q12
3,611
1Q11
3,171
1Q12*
4,755
1Q11
7,171
* Value based on the previous Listed Homebuilders - does not include Living, JHSF and CR2 in the 1Q11 or 1Q12.
Evolution of Launches 1Q12
Evolution of Launches – Listed Homebuilders and Lopes
Listed Homebuilders
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Breakdown Homebuilders
(R$ BI)
Breakdown Top 5 Clients Breakdown – Homebuilders
49% 53%
56%
51% 47% 44%
2010 2011 1Q12
Demais Clientes 10 Maiores Clientes
292 236 301
7.6% 9.5% 8.9%
7.1% 5.3% 6.2%
6.1% 5.2% 5.0%
6.1% 5.1% 4.4%
4.7% 4.0% 4.1%
2010 2011 1Q12
1st 2nd 3rd 4th 5th Other Clients Top 10 clients in sales Other Clients
Nº Homebuilders
17% 18%
14%
23%
15%
19% 19% 21%
31%
22%
32%
24% 25% 27%
25% 22% 23%
29% 28% 26%
24%
37%
29%
41%
16%
33% 30% 30%
2005 2006 2007 2008* 2009 2010 2011
Seasonality
Average of historical seasonality of the first
quarter:
17.9%
LPS Brasil in the Mortgage Market
CrediPronto!
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CrediPronto!
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R$322MM in Mortgages
Average LTV of 59%
1,087 Contracts Average Period of 311 months
Average Rate of 10% + TR
1Q12
Financed Volume
CrediPronto!
(R$ MM)
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(R$ MM)
Accumulated Volume Sold*
*It doesn’t include amortization.
CrediPronto! granted mortgage loans worth R$322 millions in 1Q12, 54%higher than 1Q11.
322
209
+54%
1Q12 1Q11 1Q11
1,013
2,397
+137%
1Q12
Mortgages Portfolio
CrediPronto!
The Average Portfolio Balance in 1Q12 was R$1.8 billion.
(R$ MM)
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+13%
Ending Portfolio Balance
1,989
Starting Portfolio Balance
1,768
Accumulated Sales Volume *
CrediPronto!
(R$ MM)
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The CrediPronto! exceeded the $ 2.3 billions in financing since the beginning of the operation.
*Not including amortization.
217 291
385 474
591 727
854 1,013
1,219
1,461
1,698
1,956
2.153
2.397
Financial Results
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Net Commission
Net Commission by Market
Net Comssion Fee
1Q12 4Q11 3Q11 2Q11 1Q11 4Q10 3Q10 2Q10
BRAZIL 2.3% 2.4% 2.4% 2.4% 2.3% 2.5% 2.6% 2.4%
Primary
SP 2.8% 3.1% 2.9% 3.0% 2.9% 3.1% 3.2% 3.0%
Habitcasa 2.0% 2.1% 2.1% 1.9% 1.9% 1.9% 1.9% 1.8%
RJ 2.1% 2.1% 2.2% 2.0% 2.2% 2.1% 2.1% 2.2%
Other Markets 2.1% 2.1% 2.1% 2.1% 2.1% 2.1% 2.3% 2.1%
Secondary
SP 2.2% 2.4% 2.3% 2.3% 2.2% 2.3% 2.2% 2.2%
RJ 2.3% 2.3% 2.4% 2.5% 2.4% 2.3% - -
Other Markets 2.3% 2.5% 2.4% 2.4% 2.1% - - -
Gross and Net Revenue
Net Revenue
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(R$ MM)
Gross Revenue
(R$ MM)
This quarter we have achieved 14% growth in net income compared to 1Q11.
+18%
1Q12
100.6
1Q11
85.1
+14%
1Q12
88.4
1Q11
77.4
Gross Revenue Reconciliation
IMPORTANT CRITERIA FOR CONTRACTED SALES
The contracted sales released in the quarter is exclusively based on the invoiced sales,
which multiplied by the net commission result in the gross revenue of the quarter.
Thus, the R$4 billion in contracted sales in the 1Q12 meets all the criteria for accounting
the Company’s gross revenue, even including the contract approval by the homebuilder.
Additional sales generated during this same period, that do not meet all the accounting
criteria were not considered as contracted sales of the period.
1Q12 - Gross Revenue Reconciliation (R$ Million)
Contracted Sales (a) 4,003
Net Comission (b) 2.31%
Gross Brokerage
Revenue (a) x (b)92.5
Revenue to Accrue from Itaú
Operations3.6
Other revenues 4.5
Gross Revenue 100.6
Results 1Q12
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Results 1Q12
(R$ thousand)
LAUNCHES PRONTO! CREDIPRONTO! CONSOLIDATED
Gross Service Revenue 73,405 22,724 4,496 100,625
Revenue from Real Estate Brokerage 69,780 22,724 4,496 97,000
Revenue to Accrue from Itaú Operations 3,625 - - 3,625
Earn Out - - - -
Net Operating Revenue 64,541 20,003 3,833 88,377
(-)Costs and Expenses (44,644) (14,670) (3,396) (62,710)
(-) Stock Option Expenses CPC10 (235) - - (235)
(-) Expenses to Accrue from Itaú (238) - - (238)
(=)EBITDA 19,424 5,333 437 25,194
EBITDA Margin 30.1% 26.7% 11.4% 28.5%
(+/-) Other nonrecurring results - - - -
(-)Depreciation and amortization (7,685) (5,923) (12) (13,620)
(+/-) Financial Result 18,682 3,262 56 22,000
(-)Income tax and social contribution (10,078) (1,478) (426) (11,982)
(=)Net income in period 20,343 1,194 55 21,592
Net Operating Margin 31.5% 6.0% 1.4% 24.4%
(=)Net Income in Period
- Non-controlling Shareholders (247)
- Controlling Shareholders 21.345
Net Margin after Minority Interest 24.2%
Net Income 1Q12
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Net Income from Launches 1Q12 Net Income from Pronto! 1Q12
Ajusted Net Income
22%
14,361
Amortization of intangible
assets
4,433
Taxes over intangible
assets
2,796
Non-cash call/put effect
12,317
Earnout impact
894
Net Income
32%
20,343
Ajusted Net Income
22%
4,405
M&A Costs
1,144
Amortization of intangible
assets
5,124
Taxes over intangible
assets
0
Non-cash call/put effect
1,227
Earnout Impact
4,284
Net Income
6%
1,194
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Operational Expenses
* Não considera IFRS
Evolution of Operational Expenses*
(R$ MM)
-16% +7%
63,183
1Q12
59,787
3,396
4Q11
74,993
51,276
17,897
5,820
3Q11
66,013
46,464
16,133
3,416
2Q11
71,252
49,219
18,326
3,707
1Q11
59,210
46,130
9,982
3,098
Organic (pre-M&A) Acquisitions CrediPronto!
EBITDA
EBITDA Margin EBITDA(%)
(R$ Milhares)
27 *We consider now the EBITDA, excluding other operating expenses (revenues), that considers IFRS non-cash, as the company performance indicator. We recalculated all previous EBITDAs in the same way. This will be our
standart from now.
+39%
23%
1Q11
25,194
1Q12
29%
18,128
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IFRS Impacts – Net Income before non-controlling shareholders
DescriptionBefore
IFRSIFRS Effects* After IFRS
Net Operating Revenue 88,377 88,377
Costs and Expenses -63,183 0 -63,183
Depreciation and Amortization -4,063 -9,557 -13,620 (1)
Finance Result 5,732 16,268 22,000 (2)
Operational Profit 26,863 6711 33,574 (1)+(2)
Income tax and social contribution -9,186 -2796 -11,982 (3)
Net Income 17,677 3915 21,592 (1)+(2)+(3)
* IFRS 15 non cash effects (business combination)
(1) Amortization of Intangible Assets
(1) Combined effects: i) Gains and losses with net non-cash effects of call and put options from controlled companies, based on the fair value according to future estimates and ii) non-cash impacts from payable earnouts
(1) Deferred Income Tax over effects of call and put on LPS Brasil.
Net Income - Net Income after non-controlling shareholders
Net Income Attributable to Controlling Shareholders
Net Margin
(R$ Thousand)
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Net Income Attributable to Controlling Shareholders before IFRS *
Net Margin
+29%
1Q12
24%
21,345
1Q11
21%
16,514
+27%
1Q12
16%
13,768
1Q11
14%
10,872
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1Q12 Acquisitions
Data da
Aquisição March 2nd 2012 March 12th 2012 March 15th 2012
Participação 51% 51% 51%
Pagamento R$ 15 million R$ 10 million R$ 6,6 million
1Q12
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ASSETS
Cash and Cash & Equivalents* R$ 218.4million
Receivable From Clients R$ 94.2 million
Cash Position
Acquisition Payment Schedule
(R$ million)
2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 TOTAL
Acquisition - Secondary
8.4 7.1 9.3 17.3 2.9 3.3 13.1 18.0 3.2 8.7 14.2 17.8 - 8.0 - - 131.4
1Q12 Earnings Conference Call
Portuguese English
Date: 05/11/2012, Friday Date: 05/11/2012, Friday
Time: 11h00 a.m. (BR Time)
10h00 a.m. (NY Time)
Time: 12h30 p.m. (BR Time)
11h30 a.m. (NY Time)
Telephone: (11) 4688-6361 Password: Lopes
Telephone Brazil: (11) 4688-6361 Telephone US: +1 888-700-0802
Telephone other countries: +1 786 924-6977 Password: Lopes
Replay: Replay: http://webcall.riweb.com.br/lpsbrasil/ http://webcall.riweb.com.br/lpsbrasil/english/
CONTACTS Marcello Leone CFO and IRO Tel. +55 (11) 3067-0015
IR Tel. +55 (11) 3067-0218
E-mail: [email protected] www.lopes.com.br/ir
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