Teconferencia Apresentacao 4 T06 Eng
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Transcript of Teconferencia Apresentacao 4 T06 Eng
TELECONFERENCE – 2006 EARNINGSSÃO PAULO, MARCH 13 2006
2
SAFE HARBOR
This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of CCDI and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.
Although CCDI believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to CCDI’s management, CCDI cannot guarantee future results or events. CCDI expressly disclaims a duty to update any of the forward-looking statements.
3
INITIAL PUBLIC OFFERING
Date: January 31, 2007
Primary and Secondary Offering
Share Price: R$ 14.50
Deal Volume: R$ 522 million
Closing Date: February 22, 2007
22,022 indiciduals subscribed
52% local investors ownership
Float: 32%
4
CAMARGO CORRÊA
4.4%4.4% 5,4405,440 16,56016,560
1.6%1.6% 29,50329,503 26,71526,715
14.9%14.9% 3,8853,885 6,6086,608
38.5%38.5% 609609 940940
58.9%58.9% 516(2)516(2) 365365
5.8%5.8% 5,4815,481 8,9018,901
99.3%99.3% 512(2)512(2) N.D.N.D.
100.0%100.0% 425(2)425(2) N.D.N.D.
17.9%17.9% 963963 5,4015,401
Premier
Premier Listed
ListedCompanies
Companies
Private
Private
Sources: Companies Reports, Bloomberg.(1) Last 12 months as of Sept 06. (2) 2005 Financial Information.(3) At IPO.
65.5%65.5% 5252 1,639(3)1,639(3)
CompanyCompany OwnershipOwnershipNet revenueNet revenue
0606(1)(1) (US$ mm)(US$ mm)MktMkt capcap(US$ mm)(US$ mm)
Camargo Corrêa Group Camargo Corrêa Group -- Main businessesMain businesses Benefits from Camargo Corrêa Group:
67 years of operations
Leading public companies
Balance sheet strength and indirect financial sponsorship
Excellence in corporate governance
Nationwide and international presence
Strong results oriented culture and capital discipline
5
WHY CCDI?
Strong local brand recognition
Business expertise
Unique access to prime land bank
Synergies from the infrastructure company
National presence
Unique access to financing
Experienced management
Room for a market leader
Favorable political and economic environment
Decreasing interest rates
Available financing
Pent-up demand
Government support
Fragmented competition
Sector perspectivesCamargo Corrêa value
added
A CCDI EM 2006
7
2006 IN FIGURES
We more than doubled 2005´s performance
PSV Launched (R$ million)
55.0
212.9
266.5
186.8
2004 2005 2006
CAGR: 187%
453,3
Units Launched
90
497571
2004 2005 2006
CAGR: 152%
Total Area Comletion PSV CCDI's Residential Location Launch Date
m2 Units
Date PSV
CCDI Stake
Passeio de Itanhatim São Paulo feb/06 11,304 80 sep/08 33.0 33.0 100.0%
Porto Pinheiros São Paulo may/06 15,109 75 may/09 57.3 57.3 100.0%
Condomínio Cyprae (PSL) Bertioga (SP) nov/06 12,008 60 may/09 46.1 46.1 100.0%
Wave São Paulo dec/06 18,805 162 dec/09 50.9 50.9 100.0%
Passarim São Paulo dec/06 18,305 108 dec/09 49.8 49.8 100.0%
Corcovado São Paulo dec/06 10,307 50 dec/09 29.4 29.4 100.0%
Total Area Comletion PSV CCDI's Commercial Location Launch Date
m2 Units
Date PSV
CCDI Stake
Ventura Corporate Towers Rio de Janeiro jun/06 53,378 36 may/08 373.6 186.8 50.0%
8
2006 IN FIGURES
Outstanding Sale Success
Contracted Sales (R$ million)
48.8
176.8 172.0
2004 2005 2006
CAGR: 88%
Units Sold
88
311
377
2004 2005 2006
CAGR: 107%
Average Sales Price (R$/m2)
3,143.73,079.4
3,260.5
2004 2005 2006
+6%
9
SUSTAINABLE GROWTH
R$ 5.0 billion PSV (CCDI’s stake)
90% acquired trhough financial swaps
No risk concentration
Segment diversification
Geographical diversification
On going negotiations: R$ 4 billion PSV (estimated success rate: 50%)
Other 3%
Residential 73%
Commercial AAA 24%
Segment diversificationSegment diversification
Luxury (over $850)= 2%
High ($350 – $850) = 40%
Med-High ($200 - $350) = 40%
Medium ($100 – $200) = 18%
Residential Breakdown Residential Breakdown
(In R$ (In R$ ‘‘000)000)
São Paulo 85%
Rio Janeiro 6%São Paulo
Interior e Litoral 9%
Land bank breakdown Land bank breakdown
10
UNIQUE LAND BANK, EXCELLENT POTENTIAL
LandLand
Burle MarxPark
Burle MarxPark
Burle
Marx
ParkBu
rleMarx
Park
Marapendi
LakeLandLand
RuaSta. Virgin ia
LandLand
Piqueri ParkPiqueri Park
Marginal TietêMarginal Tietê
Jardim Sul - SP
Potential sales (mm) Launch year
R$1,500 to be launched 2007/2015Itautec - SP
Península de São Lourenço - SP Lote 27 - RJ
Panamby -SP
Potential sales (mm) Launch year
2007R$283 to be launched
Potential sales (mm) Launch year
R$586 to be launched 2007
Potential sales (mm) Launch year
R$430 to be launched 2007/2008
Potential sales (mm) Launch year
R$150 to be launched 2007/2008
LandLand
FINANCIAL INFORMATION
12
PROJECT FLOW
Sales are recognized based on the percentage of costs incurred versus the total budget (financial completion)
SecuritizationConstruction
Launch Go-ahead Delivery
4M – 6MLicensing
Sales
70%70%
40%40%
28%28%
20%20%
98%98%
100%100%
100%100%
73% / 100%73% / 100%
0%0%
15%15%
0%0%
0%0%
90%90%
62%62%
56%56%
47%47%
0M0M 12M12M 24M24M 36M36M
Contracted salesContracted sales
% budget costs% budget costs
RevenuesRevenues
CollectionCollection
13
REVENUES
Gross Revenues (R$ million)
14.3
83.8
131.1
2004 2005 2006
CAGR: 203%
Gross Revenues (R$ million)
24.5
38.5
4Q05 4Q06
+57.3%
Projects Deli-very
Usable Área
Financial Completion
Accumulated Sales
Accumulated Revenues
Recognized CCDI’s stake
2006 2005 2006 2005 2006 2005 2006
(m2) (%) (%) (R$milllion) (%)
Terra da Mata 2003 16,616 100 73 92 77 16.6 17.6 100
Raízes da Mata 2003 22,610 100 72 88 74 22.1 25.5 100
Luzes da Mata 2004 19,918 69 28 88 69 24.3 7.4 100
Refúgio da Mata 2005 17,511 42 22 84 53 16.5 6.0 100
Forte do Golf 2005 47,978 30 20 84 69 12.3 20.0 100
Central Park 2005 7,810 62 50 69 51 7.6 5.9 55
Passeio de Itanhatim 2006 11,304 16 35 2.0 100
Porto Pinheiros 2006 15,109 33 84 15.4 100
São Lourenço 2006 12,008 8 69 10.3 100
Wave 2006 18,805 17 12 1.0 100
Corcovado 2006 10,307 16 11 0.5 100
Passarim 2006 18,305 18 6 0.5 100
Ventura Corporate Towers 2006 53,378 12 0 0 0.0 50
Total (*) 218,281 44 39 65 68 129.1 82.4
(*) Does not include Ventura Corporate Towers
14
INCOME AND MARGIN
Gross Income (R$ million)
3.2
13.5
25.3
2004 2005 2006
CAGR: 181%
Gross Income (R$ million)
1.7
7.1
4T05 4T06
+312.1
%
Gross Margin (%)
20.2%17.0%
2005 2006
+320 bps
15
REVENUES TO BE RECOGNIZED
Revenues to be Recognized (R$ million)
37.6
50.3
2005 2006
+34%
Gross Margin on Sales to be Recognized (%)
23.3% 24.8%
2005 2006
+150 bps
16
DISCUSSING MARGINS
The method of land accounting by Camargo differs from its competitors, given that most land is acquired by financial swap with full ownership transferred to CCDI
Net Revenues $100
Construction Cost and Others $50
Land $15
Gross Profit $35
Gross Margin 35%
Net Revenues $85
Construction Cost and Others $50
Gross Profit $35
Gross Margin 41%
Difference of 6% in gross margin
Financial vs. Physical Exchange
Stronger ownership of the land
Less expensive than physical exchange
In line with market practices
Camargo Typical Residential ProjectCamargo Typical Residential Project Other Companies Other Companies
17
NET INCOME AND EBITDA
Net Income (R$ million)
2.4 2.7
(6.0)
2004 2005 2006
EBITDA (R$ million)7.9
2.0
(3.8)
2004 2005 2006
+295%