Post on 08-Nov-2018
Safe-Harbor Statement
We make forward-looking statements that are subject to risks and uncertainties. These
Statements are based on the beliefs and assumptions of our management, and on information
currently available to us. Forward-looking statements include statements regarding our intent, belief
or current expectations or that of our directors or executive officers.
Forward-looking statements also include information concerning our possible or assumed future
results of operations, as well as statements preceded by, followed by, or that include the words
''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or
similar expressions.
Forward-looking statements are not guarantees of performance. They involve risks, uncertainties
2
Forward-looking statements are not guarantees of performance. They involve risks, uncertainties
and assumptions because they relate to future events and therefore depend on circumstances that
may or may not occur. Our future results and shareholder values may differ materially from those
expressed in or suggested by these forward-looking statements. Many of the factors that will
determine these results and values are beyond our ability to control or predict.
Agenda
Wilson AmaralChief Executive Officer, Gafisa
Antonio Carlos Ferreira RosaBusiness Development Officer, Gafisa
Flavio FernandesBusiness Development, Tenda
Mario Rocha Neto
3
Mario Rocha Neto Construction Officer, Gafisa
Marcelo WillerBusiness Development Officer, Alphaville
Duilio CalciolariChief Financial Officer and Investor Relations Officer, Gafisa
Histórico
1954 2005 2006 2007 2008 2009
• Gafisa
founded
• Equity Int’l
(Sam Zell)
invests
• IPO
• Alphaville
Acquisition
• Follow-on
•NYSE listing
•60% control
of Tenda
• Gafisa
announces
intention tp
incorporate
100% of
TendaTenda
• Valuation of
AUSA 20%
Shareholders’s Structure
49%
26%
19%
6%
13.7% 86.1%
Other Shareholders *Shareholder´́́́s Structure*
26%
ADRs Institucional Internacional Institucional Local Individual
*Source: Itaú Custódia – 12/11
** Nov 2nd – Nov 25th, 2009
Average daily trading volume: R$120.6 million**
Average Daily Turnover in the last 90 days over free float – 2.9%
Delivering Goals Established Since IPO
Gafisa was extremely efficient in the use of proceeds from its previous issuances
325 254 450
2003 2004 2005
Contracted sales(R$ mm)
Ajusted EBITDAMargin
Before IPO
1
13% (2005) 20.4% (3T09)14% (2006)
After IPO
18% a.a.90% a.a.
40% a.a.
Proceeds from equityofferings:
R$494 mm R$488 mm
450
995
1,627
2005 2006 2007
1,627
2,5783,200
2007 2008 2009
After Follow On / NYSE
Productdiversification2
Margin
Geographicdiversification
Cities: 1335
16
100
21
13% (2005) 20.4% (3T09)14% (2006)
9M09
Note:
1 Considers the mean of Gafisa’s guidance for 2009
States: 8
100%
Gafisa
100%
Gafisa
48%
8%
45%
Gafisa Alphaville Tenda
Strategy AdoptedEnd of 2008:
• Seizing opportunities – Tenda´s Acquisition;• Preserving liquidity of the Company – 2009 Uncertainties.
Beginning of 2009:• Conservative strategy launch;• Focus on the sales of inventory.
End of 2009:
• Recovering of launches;
• Accelerate future growth.Inventory / Launches3.394
2.9292.679 2.814
747
160
626 514
1.000
2.301
4Q08 1Q09 2Q09 3Q09 4Q09E 2009E
Inventory Launches
4Q09 LaunchesEstimates
Inventory / Launches – R$ million
Significant GrowthSales
450995
1,329 1,345 1,548
238 300 369 59
932
1.363
2005 2006 2007 2008 2009
Gafisa Alphaville Tenda
450
995
1,626
2,577
3,280
Construction Site Number of Employees
Number of Clients
9,500 12,400 17,400 24,500 28,0005,000
6,000 7,000
36,000
2005 2006 2007 2008 2009
Gafisa Alphaville Tenda
9,500 12,400
22,40029,500
71,000
+7.5X
+7.3X
Construction Site
48 63 85 95 100
195 270
2006 2007 2008 2009 2010
Tenda Gafisa
290
370
48 63 85
Number of Employees
632 724 1,1552,236
5,025
145
197
259
1,234
1,551
2005 2006 2007 2008 2009
Gafisa Alphaville Tenda
632 7241,879
3,667
6,835
Source: Gafisa, Alphaville e Tenda
E
+10,8X
+7.7X
Incorporation of Alphaville
In October 2006 we entered into a definitive agreement to acquire 100% of
Alphaville in 3 steps:
60% immediately(January,2007);
40 % in the next 5 years:
- 20% in the beginning of 2010
- 20% in the beginning of 2012
The 20% regarding 2010 is being analyzed at the moment;The 20% regarding 2010 is being analyzed at the moment;
Gafisa is analyzing possible synergies in back office areas, always aiming to
keep the brands separated.
Incorporation of Tenda
In November 9th, 2009, Tenda´s Independent Committee and Gafisa´sadministrators stipulated shareholders shall receive 0.205 common Gafisa´sshares, for each Tenda´s share;
Extraordinary General Shareholders’ Meeting scheduled for 12/23;
Structure after incorporation:
Shared back office areas;
Independent brands focused on their own segments.
Tenda will keep its differentiated structure and well succeed sales through its own
stores and also its method of construction
Scenario
Interest rate vs. housing financing
20.000
35.000
50.000
65.000
80.000
95.000
0%
5%
10%
15%
20%
25%
30%
De
c-0
2
Ap
r-0
3
Au
g-0
3
De
c-0
3
Ap
r-0
4
Au
g-0
4
De
c-0
4
Ap
r-0
5
Au
g-0
5
De
c-0
5
Ap
r-0
6
Au
g-0
6
De
c-0
6
Ap
r-0
7
Au
g-0
7
De
c-0
7
Ap
r-0
8
Au
g-0
8
De
c-0
8
Ap
r-0
9
Au
g-0
9
Interest Rate (Selic) Real Estate Credit (R$MM)
Financing term (days)
0
500
1.000
1.500
2.000
2.500
3.000
3.500
Jan
-03
Jun
-03
No
v-0
3
Ap
r-0
4
Sep
-04
Feb
-05
Jul-
05
De
c-0
5
Ma
y-0
6
Oct
-06
Ma
r-0
7
Au
g-0
7
Jan
-08
Jun
-08
No
v-0
8
Ap
r-0
9
Sep
-09
Fundamentals supporting recent real state growth continue :
Interest Rate (Selic) Real Estate Credit (R$MM)
Consumer Confidence Index
90
95
100
105
110
115
120
125
set/
05
fev/
06
jul/
06
de
z/0
6
ma
i/0
7
ou
t/0
7
ma
r/0
8
ag
o/0
8
jan
/09
jun
/09
no
v/0
9
115,5
Record level
pos crisis
Source: Bloomberg, BCB, IBGE, FGV
85%
46%
13% 9%2%
USA Spain Chile Mexico Brazil
Housing Financing vs. GDP (2008)
3%
Brazil2009E
Potencial Demand Growth And Still Low Bid
The increase in purchasing power and number of families is expected to support
residential real state demand in the coming decades
Population andFamilies
2007 2017E 2030E
Families 60.3 75.6 95.5
Population 189.1 211.2 233.6
Person per house 3.1 2.8 2.4
Number of families (mm) and monthly income (mm)
2007 2030
Above R$32 thousand 0 0% 0,3 0%
R$16 mil - R$32 thousand 0,3 0% 1,3 1%
R$8 mil - R$16 thousand 1,1 2% 4,3 5%
R$4 mil - R$8 thousand 3,3 5% 11 12%
R$2 mil - R$4 thousand 8,4 14% 21,8 23% Número de mudanças de domicílio por pessoaR$2 mil - R$4 thousand 8,4 14% 21,8 23%
R$1 mil - R$2 thousand 15,5 26% 27,6 29%
Up to R$1 thousand 31,7 53% 29,1 31%
TOTAL 60,3 100% 95,4 100%
Brazil Mexico G7
1.8x 4.0x 9-10x
Número de mudanças de domicílio por pessoa
Source: IBGE, FGV, Bloomberg, Central Bank
Housing deficit in Brazil is now R$6.8 million in 2008.
Perspectivas
Gafisa reaffirm the full-year guidance for sales in 2009:
R$ 3.2 billion in contracted sales
4Q09 launches are over R$ 1.2 billion;
We continue with an optimistic outlook for the sector.
Antônio Carlos Ferreira RosaBusiness Development Officer, GafisaBusiness Development Officer, Gafisa
The financial crisis impacts the speed of property sales:
Insecure clients;
Concerns about unemployment;
Financial health of developing companies;
Delivery capacity.
Gafisa strategies for 2009:
2008 / 2009 Scenario
Gafisa strategies for 2009:
Sales focused on remaining developments;
Sales will only start when there is a sufficient sales reservation level that guarantees
approximately 40% of sales in the start;
Launch only when the hiring of construction financing is guaranteed;
Institutional campaign Compra Segura (Safe Acquisition).
1st Quarter
510 Units sold165 million in PSV
Special Reservation
2nd Quarter
391 units sold136 million in PSV
Gafisa Sales
450
995
1,329 1,345
1,044
32% 33%68%
450
2005 2006 2007 2008 9M09Remaining Launches
32% 33%68%
Launches / Sales
2008: Sales / Launches ratio = 0.7x 9M9: Sales / Launches ratio = 1.5x
1,345
1,913
1,000
1,500
2,000
2,500
1,0441,000
1,500
2,000
2,500
0
500
1,000
Sales Launches
687
0
500
1,000
Sales Launches
Launches – 9M09
PARÁ – R$35.3 million
MARANHÃO – R$20.6 million
BAHIA – R$40.9 million
AMAZONAS – R$42.1 million
RONDÔNIA – R$40.3 million
SÃO PAULO – R$368 million
RIO DE JANEIRO – R$63.2 million
R. G. DO SUL – R$15.9 million
GOIÁS – R$60.5 million
RONDÔNIA – R$40.3 million
TOTAL: R$687 million
2009
Focus on Remaining Developments
Focus on Remaining Developments
Speed up in the volume of launches
Focus on Launches
Special Reservation
Special Reservation
Jan Mar Jun Sep Dec
Launches: 138 thousandSales: 270 thousand
10% launches90% stock
Launches: 352 thousandSales: 390 thousand
34% launches66% stock
Launches : 197 thousandSales : 384 million
45% launches55% stock
10 Launches expected
Launches
RESERVA IBIAPABA
Launch: OCT
City: Belém – PA
PSV: R$17 million
PARQUE MACEIÓ
PAULISTA CORPORATE
Launch: OCT
City: São Paulo – SP
PSV: R$72 million
PARQUE MACEIÓ
Launch: OCT
City: Maceió – AL
PSV: R$15 million
LONDON VILLE
Launch: OCT
City: Barueri – SP
PSV: R$71 million
VISION BROOKLIN
Launch: NOV
City: São Paulo – SP
PSV: R$117 million
Launches
VISTA PATAMARES
Launch: NOV
City: Salvador – BA
PSV: R$37 million
CITY PARK EXCLUSIVE
Launch: NOV
City: Salvador – BA
PSV: R$12 million
OFFICE LIFE
Launch: NOV
City: Curitiba – PR
PSV: R$26 million
LaunchesGLOBAL OFFICE
Launch: DEC
City: Niterói – RJ
PSV: R$33 million
IT
Launch: DEC
City: São Paulo – SP
PSV: R$177 million
Landbank
Landbank Gafisa of 7.1 billion in potential PSV - 3Q09
North 7%
South 4%
Midwest 2%
RJ 14%
Southeast
Northeast 23%
SP 44%
ES 2%
MG 4%
Southeast64%
Knowledge of local market
Knowledge of local culture
Easier access to local agencies reducing the time for approvals
Access to business opportunities
Mitigate entry barriers
Local operational support
Importance of Local Partners
Brand
Safe AcquisitionSafe Acquisition
Developments DeliveredDevelopments Delivered
55 YearsCampaign55 Years
Campaign
Real Estate Industry – Economic Segment
Family DynamicsFamily Dynamics
Housing DeficitHousing Deficit
Brazilian Middle-Class Brazilian Middle-Class
Favorable Scenario Residential Market Economic
Segment
Favorable Scenario Residential Market Economic
Segment
Region Housing Deficit*Units Expected
(MCMV)**Coverage
North 897,544 103,018 11%
Northeast 2,354,132 343,197 15%
Midwest 324,615 69,785 21%Brazilian Middle-Class
Growth
Brazilian Middle-Class
Growth
MCMVMCMV
= Opportunities
Midwest 324,615 69,785 21%
Southeast 2,629,497 363,984 14%
South 625,521 120,016 19%
TOTAL 6,831,309 1,000,000 15%
*Source: 2008 Housing Deficit in Brazil - FGV
** Manual MCMV Program - Federal Government. Preliminary distribution subject to
changes due to the contribution of States and Municipalities
� São Paulo Metropolitan Region (RMSP) in 2009: 19,986 units launched (60% Affordable/Economic Segment)
Growth in Units Launched - RMSP
Real Estate Industry – Economic Segment (Southeast)
Source: EMBRAESP;
Evolução Unidades Lançadas - RMSP
38,990
34,475
19,986
6,402
15,117
10,05813,085
Total Affordable Economic
50%58% 60%
�Rio de Janeiro Metropolitan Region in 2009: 10.427 units launched (90% Affordable/Economic Segment)
Source: VSO – ADEMI-RJ survey;2009 data up to November;Affordable: Units up to 50 square meters and Economic: units from 51 to 100 square meters.
Units Launched
Source: EMBRAESP;2009 data up to November;Affordable: Units up to 99 thousand and Economic: units from 100 thousand to 250 thousand.
6,402 4,9781,956
2007 2008 2009
2008 2009
Affordable 2,390 3,037
Economic 13,025 6,381
Overall Total 18,011 10,427
Subsidies 0 16,000
Simulation of impact on the market size
BeforeMinha Casa, Minha Vida
Average price of the unitR$80,000
Mortgage
Cost (TR+)
Monthly installment
Monthly income
80,000
7%
665
64,000
5%
394
Highlights
Financing of 1 million homes with subsidies of up to R$23 thousand for families with monthly income of up to 10 minimum wages (R$4,650)
Package totaling R$34 billion (Federal Government, FGTS and BNDES)
Property financing from R$80 thousand to R$130 thousand
Minha Casa, Minha Vida (My House, My Life)
32
Additional market: increase of approximately 10 million homes
Monthly income required
# of minimum wages
Market included(millions of homes)
2,661
6.4
13.4
1,969
4.2
23.4
Source: Market reports
thousand
Interest rates from TR+5% to TR+8%
Financing to construction companies of 100% of the unit value
With no down payment and monthly payments during construction for families with monthly income of up to 3 minimum wages
Minha Casa, Minha Vida Program - CEF
Contracts under Analysis – ‘000
23
38
64
73
83
107
25
44
69
93
116
138
25
63
117
173
248
322
Jun
Jul
Ago
Set
Out
Nov
6 a 10 salários mínimos
3 a 6 salários mínimos
0 a 3 salários mínimos
567
447
339
249
145
73
120
108
90
104
72
Nov
Oct
Sep
Aug
Jul
Jun
6 to 10 minimum wages
3 to 6 minimum wages
0 to 3 minimum wages
Units Contracted – ‘0000 a 3 salários mínimos
5
6
9
12
16
18
13
20
28
35
45
56
8
15
26
38
66
103
Jun
Jul
Ago
Set
Out
Nov
6 a 10 salários mínimos
3 a 6 salários mínimos
0 a 3 salários mínimos
176
127
85
63
41
26
49
42
22
22
15
Fonte: CEF
0 to 3 minimum wages
Nov
Oct
Sep
Aug
Jul
Jun
6 to 10 minimum wages
3 to 6 minimum wages
0 to 3 minimum wages
Units Sold Units Concluded Units Contracted
1Q09 3,157 1,305 1,036
2Q09 4,366 2,151 987
3Q09 4,114 1,417 1,436
Total 11,637 4,873 3,459
Units Contracted - Tenda
Sales and Launches – Regional Distribution (9M09)
Launches: 61 Launches: 61 million
Sales: 43 million
Launches: 25 million
Sales: 142 million
480 million Launches978 million Sales
480 million Launches978 million Sales
Launches: 300 million
Sales: 674 million
Launches: 94 million
Sales: 58 million
Launches: NDSales: 62 million
Domestic Presence32 Stores64 Cities15 States
Domestic Presence32 Stores64 Cities15 States
Sales Model
TENDA’s sales model is more convenient to its clients, offering a wide range of products
through strategically-located stores.
Conventional Model
Sales in individual stands in different locations
SSSS
TENDA Sales ModelSales in centralized storesoffering several projects
SS
• Generally, it uses outsourced real estate agents
• Sales stands exclusive for each project
SS• A well-trained and dedicated sales team helps our clients find
the more appropriate property and financing
• Stores located in busy areas
• The stores offer a greater variety of products and locations that better meet customer needs
Type GARDEN LIFEDUO TOWER PREMIUM
Buildings (4 or 5stories without
elevator)TownhouseHouseDescription
Buildings(with elevator)
Buildings(with elevator)
Tenda Products Portfolio
Affordable
3-6 minimum wages
Economic
6-10 minimum wages
46.0 m2
70.0 m2
39.5 m2
66.5 m2
38.0 m2
46.5 m251.0 m2Average Unit 45.0 m2
70.0 m2
Average Price(R$/m²) R$ 64.4 R$ 76.8R$ 78.3 R$ 91.9 R$ 118.0
Share of Sales (9M09)
15% 2% 54% 10% 19%
Launch
Construction
Standard 1st to 6th month 7th to 19th month 20th month
Super 6 1st month 2nd to 4th
month6th month
Super 6
� 6% down payment
� 6 months to pay the first installment
� 6 months to delivery
Revenue necessary for acquisition
Down paymentDuring the
constructionBank financing
Super 6 6% - 94%
Standard 20% 80%
Construction
Delivery
Super 6month
Launches – 4Q09
Project City State Type Launch Units PSV % sales
Vale Verde Cotia Fase 4 -
Etapa ICotia SP Super 6 Oct-09 272 23 43%
Lago dos Patos Guarulhos SP Premium Oct-09 140 24 23%
Fit Marodin (Jardins) Porto Alegre RS Premium Oct-09 120 25 42%
Parque Green Village Goiânia GO Premium Oct-09 176 16 27%
Mirante do Lago Fase 2 Belém PA Premium Oct-09 144 23 13%
Clube Garden - Mônaco São Paulo SP Super 6 Oct-09 192 20 99%
� Opportunity for sales speed increase in launches
Vivenda do Sol Porto Alegre RS Standard Oct-09 200 14 4%
Vale Verde Cotia Fase 4 -
Etapa IICotia SP Standard Oct-09 224 19 36%
Residencial Monet Lauro Freitas BA Super 6 Nov-09 80 7 74%
Residencial Monet II Lauro Freitas BA Super 6 Nov-09 120 10 27%
Portal do Sol Itaquaquecetuba SP Standard Nov-09 300 24 16%
Carvalhaes Belford Roxo RJ Super 6 Dec-09 128 12 64%
TOTAL 2,096 217
Launches 4Q09 – Super 6
VALE VERDE COTIA (PHASE 4)
Launch: OCT
City: Cotia – SP
PSV: R$42 million
43% Sold
CLUBE GARDEN - MÔNACO
Launch: OCT
City: São Paulo – SP
PSV: R$20 million
99% Sold
CARVALHAES
Launch: DEC
City: Belford Roxo – RJ
PSV: R$12 million
Launches 4Q09 – Super 6
PSV: R$12 million
64% Sold
2010 Strategy
� Acquisition of strategic landbank aimed to increase operations;
� To increase the share of short cycle projects (Super 6) in the product portfolio;
� Opportunity to increase the sales speed in launches;
�To optimize the operational efficiency (Gain of Scale).
Volume of Projects
Projects by Region
Development of New Technologies
Cycle Reduction – Brink and Super 6
Presentation Content
Sustainability – Eldorado and Genesis
Organization Chart and People Qualification
Volume of Projects
195
270
290
370
48 6385
Equivalent to 4,100 thousand/sq.m.
48 63 85 95 100
2006 2007 2008 2009 2010
Tenda Gafisa
48 63
E
REGION GAFISA TENDA TOTAL %
SP/ SPI 37 53 90 34%
RJ 19 27 46 17%
Northeast 18 26 44 17%
MG 0 37 37 14%
North/
Projects by Region
North/
Midwest 13 17 30 11%
South 4 13 17 6%
REGION GAFISA TENDA TOTAL %
SP/ SPI 37 53 90 34%
RJ 19 27 46 17%
Northeast 18 26 44 17%
MG 0 37 37 14%
North/
Projects by Region
North/
Midwest 13 17 30 11%
South 4 13 17 6%
REGIONAL GAFISA TENDA TOTAL %
SP/ SPI 37 53 90 34%
RJ 19 27 46 17%
Northeast 18 26 44 17%
MG 0 37 37 14%
North/
Projects by Region
North/
Midwest 13 17 30 11%
South 4 13 17 6%
REGION GAFISA TENDA TOTAL %
SP/ SPI 37 53 90 34%
RJ 19 27 46 17%
Northeast 18 26 44 17%
MG 0 37 37 14%
North/
Projects by Region
North/
Midwest 13 17 30 11%
South 4 13 17 6%
REGION GAFISA TENDA TOTAL %
SP/ SPI 37 53 90 34%
RJ 19 27 46 17%
Northeast 18 26 44 17%
MG 0 37 37 14%
North/
Projects by Region
North/
Midwest 13 17 30 11%
South 4 13 17 6%
REGION GAFISA TENDA TOTAL %
SP/ SPI 37 53 90 34%
RJ 19 27 46 17%
Northeast 18 26 44 17%
MG 0 37 37 14%
North/
Projects by Region
North/
Midwest 13 17 30 11%
South 4 13 17 6%
REGION GAFISA TENDA TOTAL %
SP/ SPI 37 53 90 34%
RJ 19 27 46 17%
Northeast 18 26 44 17%
MG 0 37 37 14%
North/
Midwest 13 17 30 11%
Total Projects
91* 173
* It does not include Alphaville
Reference: November/09
South 4 13 17 6%
Elevated ExternalBathroom Pods
New Technologies
DrywallElevated ExternalPavement
Precast FacadePrefabricated Doors
Status de Aderência (Novembro)Universo: 48 obras
81,25%
12,50%6,25% Satisfatórias
Regulares
Insatisfatórias
670
558
687
568600
700
NUMBER OF CONNECTIONS MADE
Quality Monitoring
Adherence Status (November)
Universe: 48 projects
Satisfactory
Fairly satisfactory
Unsatisfactory
43 34 25 27 16 17 2 7 2 8 10 8
421
320 324274
390
267
452
197
377440464
354 349301
406
269
459
199
385448
0
100
200
300
400
500
600
dez/08 jan/09 fev/09mar/09abr/09mai/09jun/09 jul/09 ago/09 set/09 out/09nov/09
( time )
Falha SucessoFailure Success
LEED® C&S PLATINUM Certification;
Elevators;
Water reuse;
Air Conditioning and Lighting System;
ELDORADO
Sustainability – Eldorado and Gênesis
FSC and ISO14001 Certification;
No trees cut down;
800,000 sq.m. Permanent Preservation Area;
GÊNESIS
Managing Director of Operations
Mário Rocha
Department of Supplies
Eduardo Calderon
Tenda’s Technical Department
Luis Magini
Thirty Parties Dept
Luis Ciniello
Gafisa’s Technical Department
José Marmo
SP Regional Dept
Fernando
RJ Regional Dept
Carlos
Control and Planning of Operations Department
Marcelo Souza
Physical and Financial Planning
Organization Chart
Hiring / Supply
MG Regional Dept
Ronny
North/Midwest Reg Dept - Gerson
Northeast Reg Dept
Sergio
South Reg Department -
Sidney
Process/ TechnologyPrice Execution
2009 – In July 13 people were hired;
2009 – hiring estimate of 103 people.
INTERNSHIP PROGRAM
2009 – 8 trainees;
2010 – 11 trainees under training.
TRAINEE PROGRAM CURRENT STAFF
People Qualification
POSITION #
OFFICERS 12
MANAGERS 522010 – 11 trainees under training.
“Comece Bem” (Start Well) program;
TRIADE Training (Time management);
INDG Training.
PEOPLE ACTIONS
MANAGERS 52
ENGINEERS+ARCHITECTS 340
INTERNS 558
Project Design
An average Alphaville project
RESIDENCIAL AREA
LEASURE AREA
RESIDENCIAL AREA
COMMERCIAL AREA
BUILDING AREA
ALPHAVILLE CLUB
COMMERCIAL AREA
RESIDENCIAL AREA
AlphaVille Graciosa (Curitiba, Paraná)
Highly sustainable Business Model
� No Land Acquisition – Negotiations thru land swap
� No investment in infrastructure prior to launching
� No bank financing for customers
� No bank financing for specific projects – leverage on holding
Complex Project Approval
Long and complicated process is an entry barrier to the segment
STRATEGIC ANALIZYS Analizys of legal and ambiental aspects, location, market and feasebility studies
PARTNERSHIP/LAN
D ACQUISITION
Contract with land owner
DUE DILIGENCE /
STRATEGIC ANALIZYS
PARTNERS/ LAND ACQUISITION OCUPATIONPROJECT
APPROVALMARKETING& SALES
CONSTRUCTION
3 years 2 years
62
D ACQUISITION
MKT & SALES In average, 80% of units sold at launch
CONSTRUCTION AlphaVille manages construction process and generally contracts third parties to operate the work flow. Average developments takes 2 years from beginning to delivery
OCUPATION In this last phase, clients are allowed to develop house projects and begin construction of units with AlphaVille´́́́s support and specific regulations of the new condominium
PROJECT
APPROVAL
Development of regions planning to be submitted to local authorities for analysis, registration and approval. This process takes in average three years and deals with federal and local authorities.
Strategy And Growth
Recife Caruaru
João Pessoa
NatalMossoró
Fortaleza
São Luís
Manaus
Boa Vista
Cuiabá
Belém
Teresina
BarueriCampinasSorocabaCarapicuibaPiracicaba
S. J. dos CamposRibeirão PretoJundiaíCotiaCajamarCampinasVotorantimItatiba
Barra da TijucaRio das Ostras
Barra da TijucaRio das OstrasMaricá
GramadoGravataíPorto AlegrePorto AlegreCaxias do SulNovo
Hamburgo
Vitória Vitória
Salvador Feira de SantanaCamaçari
Belo Horizonte Juiz de Fora
GoiâniaBrasília
Cuiabá
Campo Grande Campo Grande
Londrina CuritibaMaringáFoz do Iguaçu Florianópolis
LaunchedContracted areas
238
300
173200
300
400
Growth – Sales And Launches
46% CAGR in sales from 2006 to 2008
Number of projects and VGV
R$ 237 mm
R$ 312 mm
Sales growth (R$ mm)
70 %11
9
12
15
18
70 %
R$ 237 mm
R$ 312 mmFY 2009
FY 2009
140173
0
100
200
2006 2007 2008 9M09
R$ 237 mm
3
65
0
3
6
9
2006 2007 2008 9M09
R$ 237 mm
R$ 111 mm R$ 133 mm
Launched VGV - R$ M M 29 118 53Sold VGV - R$ M M 16 106 51VSO - sales velocity 56% 90% 95%Launched units 205 429 216Average price - R$ x1.000 142 274 245
2008 Sales Velocity And Latest Launches
RIO COSTA DO SOL F1Empreendimentos Lançados 4Q09
Porto Alegre
Piracicaba
Rio Costa do Sol F3
Gravataí II
4Q09 Launches
RIO COSTA DO SOL F3 – launched Dec-09Terras Alpha Foz do Iguaçu
VGV Lçdo até 3T09 R$ 133 MM
VGV Lçdo 4T09 R$ 278 MM
VGV Lçdo YTD R$ 411 MM
Potential Diversification
Diversification strengthening the long-term growth.
Non considered potencial growth in constructed products
Launches 48%
Terras Alpha
9%
RSC 5%
Launches 66%
Rem. 29%
Terras Alpha
2%
LS 3%
2009 - New Products- 2014
Rem. 38%
Rem. 29%
Land bank
Landbank of R$ 3.3 billion at the end of 3Q09
LAND BANK BY REGION
January 1st 2009 3,032
Land Bank position in Sep-09 3,336
Terreno Brasília – 23 million m2
SP31%
RJ8%
NM61%
Duilio CalciolariChief Financial Officer and Investor Relations Officer, GafisaChief Financial Officer and Investor Relations Officer, Gafisa
457648
1,204
1,740
1,193
2,125
2005 2006 2007 2008 9M08 9M09
78%
139198
336
526
378
601
2005 2006 2007 2008 9M08 9M09
42%
57%59%
Indicadores Financeiros Crescentes
Net Revenue (R$ MM) Gross Profit (R$ MM)
Ajusted Net Income2 (R$ MM)Ajusted EBITDA1 (R$ MM)
42%
45%
71 89
180
300
218
430
2005 2006 2007 2008 9M08 9M09
25%
67% 97%
3144
92110
97
158
2005 2006 2007 2008 9M08 9M09
20%
42%
63%
Ajusted Net Income2 (R$ MM)Ajusted EBITDA1 (R$ MM)
Note:
1 Adjusted for non-cash stock option expenses.
2 Before minority shareholders and stock option expenses
SG&A
9M09 Gafisa Tenda Total
Selling expenses(R$000) 74,446 78,897 153,344
G&A expenses (R$000) 103,436 69,396 172,832
SG&A (R$000) 177,882 148,293 326,175
9M08 Gafisa Tenda Total
Selling expenses(R$000) 75,781 11,724 87,504
G&A expenses (R$000) 81,499 23,491 104,990
SG&A (R$000) 157,279 35,215 192,494
Better recognition of revenue in Gafisa improved SG&A ratios;
Potencial diluition of Tenda´s SG&A ratios – Direct impact on the EBITDA margin.
SG&A (R$000) 177,882 148,293 326,175
Selling expenses/ Sales 6.1% 8.1% 7.0%
G&A expenses/ Sales 8.5% 7.1% 7.9%
SG&A / Sales 14.6% 15.2% 14.9%
Selling expenses/ Net
Revenues5.3% 10.9% 7.2%
G&A expenses / Net
Revenues7.4% 9.6% 8.1%
SG&A / Net Revenues 12.7% 20.4% 15.4%
SG&A (R$000) 157,279 35,215 192,494
Selling expenses/ Sales 6.2% 3.6% 5.6%
G&A expenses/ Sales 6.6% 7.1% 6.7%
SG&A / Sales 12.8% 10.7% 12.3%
Selling expenses/ Net
Revenues6.8% 16.4% 7.3%
G&A expenses / Net
Revenues7.3% 32.9% 8.8%
SG&A / Net Revenues 14.0% 49.2% 16.1%
20.2%20%
EBITDA Magin - %
2006 – IPO and geographic expansion into new markets;
2007 – Follow-on and initiatives in low income segment;
2008 – Consolidation of initiatives in low-income - Acquisition of 60% of Tenda;
2009 – Incorporation and changes in Tenda’s management;
2010E – Synergies of Tenda’s total merger, better dilution of SG&A.
Crescent EBITDA Margin
12.9%
14.0%
15.0%
17.3%
10%
12%
14%
16%
18%
20%
2005 2006 2007 2008 9M09
(R$000) 3Q09 3Q08 2Q09 3Q09 x 3Q08 3Q09 x 2Q09
Gafisa Revenues to be recognized 1.661 1.738 1.905 -4.4% -12.8%Costs to be recognized (1.051) (1.100) (1.199) -4.5% -12.4%Results to be recognized (REF) 609 637 706 -4.4% -13.6%REF margin 36.7% 36.7% 37.0% 24 bps -34 bps
Tenda 1) Revenues to be recognized 1.245 234 1.187 432.6% 4.8%Costs to be recognized (839) (160) (768) 425.3% 9.2%
Strong Pre-Sales Positively Impact Backlog of Revenues to be Recognized
R$1.1 billion of results to be recognized (42.8% growth compared to 3Q08)
Costs to be recognized (839) (160) (768) 425.3% 9.2%Results to be recognized (REF) 406 74 419 448.5% -3.1%REF margin 32.6% 31.7% 35.3% 94 bps -267 bps
Consolidated Revenues to be recognized 2.905 1.971 3.092 47.4% -6.0%Costs to be recognized (1.890) (1.260) (1.968) 50.0% -4.0%Results to be recognized (REF) 1.015 711 1.125 42.8% -9.7%REF margin 35.0% 36.1% 36.4% -113 bps -142 bps
Note: Revenues to be recognized are net from PIS/Cofins (3.65%). Backlog of Revenues not adjusted to
present value.
1) Considers Tenda and Fit Residencial in 2008
Continuous Increase in Our Mortgage Sales (Gafisa)
82% of mortgage financed directly with banks
30%
32%
16%
34%
64%74%
82%
54%
34%
16% 14%7%
20%12%
11%
2005 2006 2007 9M08 9M09
Gafisa financing longer than 36 months
Gafisa direct financing up to delivery of keys
Mortgage loans
23
38
64
73
83
107
25
44
69
93
116
138
25
63
117
173
248
322
Jun
Jul
Agu
Sep
Oct
Nov
6 a 10 minimun wage
3 a 6 minimun wage
0 a 3 minimun wage
“Minha Casa, Minha Vida” Program - CEF
567
447
339
249
145
73
120
108
90
104
72
Submitted Units– ‘000
0 a 3 minimun wage
Contracted Units – ‘000
5
6
9
12
16
18
13
20
28
35
45
56
8
15
26
38
66
103
Jun
Jul
Ago
Set
Out
Nov
6 a 10 salários mínimos
3 a 6 salários mínimos
0 a 3 salários mínimos
176
127
85
63
41
26
49
42
22
22
15
Source: CEF
Sold Units Concluded Units Contracted Units
1Q09 3,157 1,305 1,036
2Q09 4,366 2,151 987
3Q09 4,114 1,417 1,436
Total 11,637 4,873 3,459
Contracted Units - Tenda
R$ million 2Q09 3Q093Q09
Pro forma*
Total Debt 2,243 2,532 2,532
Total Cashl 1,056 1,100 1,700
Obligation to Investors 300 300 300
Solid Cash Position Allows Gafisa To Execute The Growth Strategy And Access Credit
Net Debt & Obligation to Investors 1,486 1,732 1,732
(Net Debt & Obligation to Investors) / (Equity+ Minorities) 65.6% 74.1% 74.1%
Cash-burn rate 111 246 246
* Considera a nova debênture de R$ 600 milhões no caixa do 3T09.
3Q09 Financial Highlights And Recent Events
Gafisa settled in December 10th the R$600 million debenture with Caixa.
R$1.1 billion in cash+ R$ 600 million of the new debenture.
R$3.5 billion in construction financing lines made available by Brazil’s largest banks:
R$2.1 bilhões em contratos assinados + nova debênture de R$ 600 milhões
R$1.1 billion contracts in progressR$1.1 billion contracts in progress
Ratings:
Moody’s: international (Ba2) and local (A1.br)
Fitch: (A-bra)
Standard & Poor’s: local (br A-)