Earnings Release 2Q09August 17, 2009
2Q09Comments
EarningsRelease
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Rubens Menin
Highlights of the Quarter
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2Q09EarningsRelease
Follow-on successfully completed – R$ 595 million gross proceeds (approx. R$570 net proceeds);
Record quarter for operational and financial indicators: Contracted Sales, Net Operating Revenueand Net Income;
Exceptional profitability, with 19.0% Net Margin;
Significant increase in operational capacity, keeping strict control of SG&A expenses. 3.2% fall in G&A expenses compared to 2Q08;
In spite of Contracted Sales record volume, 2Q09 selling expenses 15% lower than 2Q08 expenses;
Extremely healthy financial situation as of 2Q09 closing. Cash and Cash Equivalents amounted to R$673.2 million as of June 30, 2009. Negative Net Debt of R$6.3 million.
Best placed and prepared company to benefit from the growth of demand in the lower-income segment.
Follow-on
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2Q09
Follow-on successfully completed in July, 2009
Net proceeds of approx. R$ 570 mn
R$ 507 mn proceeds in June 2009 and the rest in July 2009
Shareholders breakdownafter Follow-on
EarningsRelease
Free Float55,1%
Rubens Menin T. de Souza
37,5%
Executives and B. Members
7,4%
Summary of the Offering
Primary Offering (thousand shares) * 18,000
Additional Shares (thousand shares) * 3,600
Over-allotment option (thousand shares) ** 2,700
Total of the Primary Offering (thousand shares) 24,300
Issuance Price - R$ 24.50
Value of the Primary Offering (in R$ mn) 595.4
* Shares issued in June 2009
** Shares issued in July 2009
Operational and Financial Performance
Land bank
Launches
Contracted Sales
Net Operating Revenue
Gross Income
Productivity Indicators
EBITDA
Net Income
Loans and Financing and Net Debt
Unearned results
Guidance
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2Q09EarningsRelease
... by Financing Source in Jun/09
% of swaps / land acquisition cost% of land acquisition cost/ PSV
... On June 30, 2009:
• Land bank of R$8,377.2 million• 85,669 potential units• Average Price of R$97.8 thousand (focus on lower-income segment)
Land Bank (%MRV)
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Operational and Financial Performance 2Q09
75%
25%
Minha Casa, Minha Vida
SFH - SBPE
8%
37%
9.9 9.5 9.0 8.7 8.4
Jun/08 Sep/08 Dec/08 Mar/09 Jun/09
Land Bank %MRV (R$ billion)
... by Price Range in 2Q09... in 2Q09:
• Launching of 50 new projects• PSV of R$614.0 million with 5,977 units• 88% of unit launched with average prices
up to R$130 thousand.
Launches (%MRV): R$614.0 million in 2Q09
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... by Financing Source in 2Q09
Operational and Financial Performance 2Q09
72%
28%
SFH - FGTS
SFH - SBPE
1,489.3
882.6 797.7
614.0
1H08 1H09 2Q08 2Q09
-23.0%
-40.7%
10%
78%
12%
Bellow R$ 80,000
From R$ 80,001 to R$ 130,000Over R$ 130,000
... in 2Q09:
• Total of R$851.5 million in contracted sales• 8,874 units sold• Average sales speed of 20% per month
Contracted Sales (%MRV): R$851.5 million in 2Q09
... by average Price in 2Q09
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Operational and Financial Performance 2Q09
... by Financing Source in 2Q09(number of units)
76%
24%
SFH - FGTS
SFH - SBPE
820.9
1,281.6
480.7
851.5
1H08 1H09 2Q08 2Q09
56.1%
77.1%
24%
60% 16%
Below R$80,000
From R$80,001 to R$130,000Over R$130,000
Inventory at Market Value (%MRV)
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Inventory distribution of units for sale as of Jun/30/09 per construction phase
Inventory at Market Value as of 06/30/09 = R$ 1.3 billion
Inventory distribution of units for sale as of Jun/30/09 per source of funds
Operational and Financial Performance 2Q09
48%52%Construction not initiated
Under Construction
42%
58%Minha Casa, Minha Vida
SFH - SBPE
Financial Indicators
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Net Operating Revenues(R$ million)
Gross Income(R$ million)
Operational and Financial Performance 2Q09
465.4
662.1
275.9
389.6
1H08 1H09 2Q08 2Q09
42.3%
41.2%
168.8
220.5
97.7
128.8
1H08 1H09 2Q08 2Q09
30.6%
31.8%
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Productivity Indicators
Selling Expenses (R$ million)
And Selling Expenses/ Net Revenue (%)
G&A Expenses (R$ million)
And G&A Expenses / Net Revenue (%)
Operational and Financial Performance 2Q09
48.4 47.8
27.0 23.0 10.4%
7.2%9.8%
5.9%
1H08 1H09 2Q08 2Q09
-1.2%
-15.0%
40.0 43.2
22.3 21.6 8.6%
6.5%8.1%
5.5%
1H08 1H09 2Q08 2Q09
7.8%
-3.2%
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Financial Indicators
EBITDA (R$ million)
and EBITDA Margin (%)
Net Income (R$ million)
and Net Margin (%)
Operational and Financial Performance 2Q09
93.2
122.9
50.5
73.9
20,0% 18,6%
18,3% 19,0%
1H08 1H09 2Q08 2Q09
32.0%
46.4%89.3
158.0
53.5
97.5
19.2%
23.9%
19.4%
25.0%
1H08 1H09 2Q08 2Q09
77.0%
82.2%
(R$ million) jun/09 mar/09 Chg. %
Debentures 404.2 314.4 28.6%
Promissory Notes - 100.0 -100.0%
Construction Financing 222.3 165.9 34.0%
Others 45.1 20.7 118.1%
Total debt 671.6 600.9 11.8%
Expenses from debenture's issuance (4.7) (2.3) 102.0%
Total Debt (Net of Fees) 666.9 598.6 11.4%
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Loans and Financing and Net Debt
Loans and Financing Breakdown
Payments Schedule
Net Debt
Operational and Financial Performance 2Q09
(R$ million) jun/09
12 months 166.1
13 to 24 months 167.6
25 to 36 months 188.6
Over 37 months 144.5
Total Debt 666.9
(R$ million) jun/09 mar/09 Chg. %
Total debt 666.9 598.6 11.4%
(-) Cash and cash equivalents (673.2) (221.2) 204.4%
Net Debt (6.3) 377.4 -101.7%
Shareholder's Equity 2,186.3 1,603.2
Net Debt / Shareholder's Equity -0.3% 23.5% -23.8 p.p.
Unearned Results
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Operational and Financial Performance 2Q09
(R$ million) jun/09 mar/09 Var. %
Unearned Sales Revenues 1.422,0 1.013,7 40,3%
Unearned Costs or Units Sold (768,7) (531,0) 44,8%
Unearned Results 653,3 482,7 35,3%
Unearned Results Margin 45,9% 47,6% -1,7 p.p.
Guidance 2009
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2Q09Operational and Financial Performance
Guidance
Sales (%MRV) - R$ million 2,400 ~ 2,900
EBITDA Margin % 24% ~ 28%
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Disclaimer
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2Q09EarningsRelease
Leonardo CorrêaExecutive Vice President, CFO and Investor Relations Officer
Mônica SimãoFinancial Director
Tel.: (+ 55 31) 3348-7150
E-mail: [email protected]
www.mrv.com.br/ri
Contacts
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2Q09EarningsRelease