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TENDA
Brazil Real Estate Conference – New York, September 15, 2009
Brazil Real Estate Conference – New York, September 15, 2009
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Disclaimer
The material that follows is a presentation of general background information about TENDA S.A. (collectively, “TENDA” or the “Company”) as of the 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 no reliance should be placed on, the accuracy, fairness, or completeness of this information.
This presentation may contain certain forward-looking statements and information relating to TENDA that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “believe,” “anticipate,” “expect,” “envisages,” “will likely result,” or any other words or phrases of similar meaning. 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 differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company nor any 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 statements contained in this presentation or for any consequential, special or similar damages.
The market data, including forecasts used throughout this presentation was obtained from internal surveys, market research, publicly available information 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 not independently verified such data. TENDA does not make 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 TENDA’s prior written consent.
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TENDA Overview
Homebuilder Founded in 1969 with Exclusive Focus on the Affordable & Entry Level Market
National Presence in 64 High-Growth Metropolitan Areas
Network of 32 Stores Staffed by Tenda’s Well-trained, Dedicated Sales Force
Standardized, Large Scale Projects with a Short Construction Cycle
Broad Product Portfolio with Unit Prices of R$60K – R$200K
2008 – Attracted Strategic Investors and New Management Team
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Strong Government Support of the Housing Sector
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• High Operating Efficiency and Execution Capacity
• Knowledge of the Target Market
Capturing the Market Opportunity
Focus: Pure Play
Right Products
Strong Brand
Focus: Pure Play
Right Products
Strong Brand
• Nationwide Footprint to Address Housing Deficit
Unique Sales Model
Land Bank
Unique Sales Model
Land Bank
Scalable Model
Strong Balance Sheet
Strong Integration with Caixa
Scalable Model
Strong Balance Sheet
Strong Integration with Caixa
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100%12%24%
53%
11%
Up to 60K > R$ 60k toR$ 90k
> R$ 90k toR$ 130k
> R$ 130k Total
2008 Sales - R$ 901 MM 1H09 Sales – R$ 620 MM
Pure Play in the Fastest Growing SegmentPure Play in the Fastest Growing Segment
83% - MCMV Program83% - MCMV Program 88% - MCMV Program88% - MCMV Program
100%17%36%
32%
15%
Up to 60K > R$ 60k toR$ 90k
> R$ 90k toR$ 130k
> R$ 130k Total
Long-term dedication to the affordable segment has prepared TENDA to deliver on the “Minha Casa Minha Vida” (MCMV) Government Program
In 2008, TENDA was the Market Leader in launch of units under R$90,000, with 63% market share.
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Broad Product Portfolio in the Affordable Segment
Entry level
Earnings of 3-6 minimum monthly wages
Economic level
Earnings of 6-10 minimum monthly wages
Type GARDEN LIFEDUO TOWER PREMIUM
Buildings with elevators
4 – 5 story buildings,
with no elevator
Homes with2 floors
Ground level homesDescription
Buildings with
elevators
46.0 m2 70.0 m2
39.5 m2 66.5 m2
38.0 m2 46.5 m2
51.0 m2Average Unit
Size45.0 m2 70.0 m2
Average Price(R$’000) R$ 64.4 R$ 76.8R$ 78.3 R$ 91.9 R$ 118.0
TENDA’s suite of entry-level products offer high value at the lowest price points in the industry.TENDA’s suite of entry-level products offer high value at the lowest price points in the industry.
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Customers Have a Positive View of the TENDA Brand
1) Powerful sales/advertising
2) Easy to deal with
3) Respectful of clients
4) Employees are well prepared to address client questions
5) Trust in company
6) Commitment to client satisfaction
7) Feeling of “security” as client of TENDA
8) Transparency of the process
9) Tenda cares about its clients
10) The best option to buy houses and apartments
TENDA (%)
Source: EP – Escritório de Pesquisa
A recent independent study revealed the top 10 reasons why customers purchase from TENDA:
A recent independent study revealed the top 10 reasons why customers purchase from TENDA:
93
79
75
74
71
70
70
69
68
64
Partially agreePartially agree
Totally agree Totally agree
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Differentiated Sales Model
• Typically uses third-party real estate brokers
• Sales stand exclusive to one development
• Typically uses third-party real estate brokers
• Sales stand exclusive to one development
Traditional Model
Sales through individual stands at each development
SS
SSSS
TENDA Sales Model•Sales through centralized stores,
offering multiple developments
•Streamlined sales process
• Dedicated, well-trained sales force helps our customers to obtain appropriate unit and financing
• Retail stores located in high traffic areas
• Stores offer a broad variety of products and locations to best meet customer needs
• Dedicated, well-trained sales force helps our customers to obtain appropriate unit and financing
• Retail stores located in high traffic areas
• Stores offer a broad variety of products and locations to best meet customer needs
SS
TENDA’s sales model provides a higher level of convenience to customers, offering a broad range of products through strategically located retail stores.TENDA’s sales model provides a higher level of convenience to customers, offering a broad range of products through strategically located retail stores.
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Retail Presence & Positive Buying Experience Builds Brand
32 Stores Located in High-Traffic Areas Over 20,000 Customers Visit Our Stores Every Month
TENDA’s extensive network of retail stores staffed with knowledgeable sales
professionals contributes to TENDA’s brand recognition in the target market
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Over R$ 130,000;
17.3%
Up to R$ 130,000; 82.7%
Other; 25.5%
RJ; 23.6%
BA; 4.3%MG; 11.5%
SP; 35.1%
Landbank for 744 units
Landbank for 744 units
Landbank for 6,033
units
Landbank for 6,033
units
Landbank for 44,252
units
Landbank for 44,252
units
Landbank for 6,000
units
Landbank for 6,000
units
Landbank for 4,692
units
Landbank for 4,692
units
Positioned in States that Account for 82% of Housing Deficit
Sources: E&Y and FGV
TENDA’s land bank of R$5.5 billion is distributed across major metropolitan markets with high growth potentialTENDA’s land bank of R$5.5 billion is distributed across major metropolitan markets with high growth potential
By Price Range – 2Q09
By Region – 2Q09
Housing ProgramHousing Program
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Standardized, Large Scale Projects
16 Items represent about 90% of TENDA’s construction cost
Hybrid Approach to Construction
39 construction partners supplemented by proprietary team of professionals
Greater flexibility in resource allocation, more efficient construction management and higher productivity.
Innovative Processes & Technology Shorten Construction Cycle
Improves returns and shortens construction and working capital cycles
Example: New aluminum mold-based construction method reduced the construction cycle from 10 to 6 months (Cotia)
Operational Model Enhances Execution Capacity
19,765 units underconstruction
New Aluminum Mold-Based ConstructionNew Aluminum Mold-Based Construction
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First monthly installment: 6 months later First monthly installment: 6 months later
Income necessary for acquisitionIncome necessary for acquisition
Shortening the Construction Cycle
Deadline Delivery for UnitsDeadline Delivery for Units
STANDARDSTANDARD
SUPER 6SUPER 6 1st 1st 2nd to 4th 2nd to 4th
Construction7th to 19th month
Construction7th to 19th month
DeliveryMonthDeliveryMonth
Launch1st to 6th month
Launch1st to 6th month
1st month: Launch2nd to 4th month: Construction 6th month: Delivery
1st month: Launch2nd to 4th month: Construction 6th month: Delivery
6% Down payment 6% Down payment
Guaranteed delivery in 6 months Guaranteed delivery in 6 months
Example: SUPER 6Example: SUPER 6
6th 6th
20th20th
Down paymentDuring the
ConstructionMortgage Financing
Super 6 6% - 94%
Standard 80%20%
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► As of June 30th, 2009, TENDA’s cash was R$ 656.9 million, net debt to equity was 9.0%
Caixa Debenture Strengthens Financial Position
Financial Position (R$ '000) 06/30/2009 % Total 03/31/2009 % Total
Cash Position 656,925 126,769
Total Debt 756,571
Working Capital 75,894 54,946
Construction Finance 73,163 75,082
Debentures 607,514 -
Short-term 93,245 12.3% 61,430 47.2%
Long-term 663,326 87.7% 68,598 52.8%
Net Debt (Cash) 99,646 3,259
Net Debt (Cash) / Equity 9.0% 0.3%
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Benefiting Clients through a Strong Relationship with Caixa
Corporate Credit Profile
Corporate Credit Profile
Project Financing
Project Financing
Credit AnalysesCredit Analyses Customer Portfolio
Monitoring
Customer Portfolio
Monitoring
Mortgage FinancingMortgage Financing
Bank Representative
Bank Representative
FinancingFinancing R$ 600 MM – Debenture R$ 120 MM – Project Finance R$ 600 MM – Debenture R$ 120 MM – Project Finance
Projects ApprovalProjects Approval
26,000 units under approval2,000 units / month 26,000 units under approval2,000 units / month
Full compliance with CAIXA standards Full compliance with CAIXA standards
Maintenance of the right profile Maintenance of the right profile
6 regions: 80% of Sales 3,000 customers in 2009 6 regions: 80% of Sales 3,000 customers in 2009
CAIXA operational standardsCAIXA operational standards
Tenda operational standardsTenda operational standards
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Pure Play in the Fastest Growing Segment of the Brazilian Housing Market
High Value Products at Lowest Price Points
Strong Brand Equity in Target Market
Unique Business Model Supported by Targeted Sales Approach and National Land bank
Scalable Execution Capacity
Experienced Management Team Supported by Strong Strategic Partners
Financial Strength to Drive Sustainable Growth
Pure Play in the Fastest Growing Segment of the Brazilian Housing Market
High Value Products at Lowest Price Points
Strong Brand Equity in Target Market
Unique Business Model Supported by Targeted Sales Approach and National Land bank
Scalable Execution Capacity
Experienced Management Team Supported by Strong Strategic Partners
Financial Strength to Drive Sustainable Growth
Tenda is Best Positioned to Meet Market Needs
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Construtora Tenda S.A.
Engenheiro Luiz Carlos Berrini Avenue, 1.376, 9º Floor, Brooklin Paulista
São Paulo, SP, 04571-000
Bovespa: TEND3
Marcus Thieme+55 (11) 3040-6426
www.tenda.com
IR Contact: [email protected] Contact: [email protected]
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