Brookfield Incorporacoes SA

Brookfield Incorporacoes SA — Q2 2009 Earnings Presentation

26 slides from Brookfield Incorporacoes SA's earnings presentation, Aug 14, 2009

  1. Slide 1: 2Q09 Results

    Lumini Gávea Green Residencial Parque Cidade Barra Prime Offices Torre IV 2Q09 Results August 14, 2009

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains forward-looking statements which are subject to risks and uncertainties. These forward-looking statements are based on the beliefs and expectations of our Management, and on information currently available, and relate to business prospects, operating and financi

  3. Slide 3: Brookfield Incorporações – Overview

    Brookfield Incorporações – Overview 3

  4. Slide 4: Highlights of the 2Q09/1H09

    Highlights of the 2Q09/1H09  OPERATING HIGHLIGHTS – Contracted Sales totaled R$568.5 million, 77.4% up on the pro-forma sales of the 2Q08. – Residential Contracted Sales reached R$668.4 million in the 1H09, increasing 33.2%. – Total Contracted Sales reached R$875 million in the 1H09, increasing 56.

  5. Slide 5: Highlights of the 2Q09/1H09

    Highlights of the 2Q09/1H09 2Q09 Scenario Our strong contracted sales are consistent with our forecasts from the beginning of the year that the global crisis would have a negative impact on the Brazilian real estate market, but that this impact would not be homogeneous, and that demand, especially

  6. Slide 6: Transformation During 2008

    Transformation During 2008 Brascan Brookfield Incorporações Brascan Brascan Company MB Pro Forma Launches (R$ million) Launches (R$ million) 2,663 1,922 1,200 1,003 723 378 2006 2007 2008 2006 2007 2008 Guidance Contracted Sales (R$ million) Pro Forma Contracted Sales (R$ million) 1,344 1,145 900 71

  7. Slide 7: Ownership Overview

    Ownership Overview Brookfield Asset  US$80 billions in assets Management Inc. (BAM) 100% Brookfield Brazil  R$14 billions in assets 51.1% Management Team of the Free Float Shareholder Agreement 15.5% 33.4% (*) Brookfield (*) Includes 1,4% of shares Incorporações S.A. in treasury. Excludes shares (

  8. Slide 8: Right Operating Structure to Deliver

    Right Operating Structure to Deliver  Integration of highly qualified professionals with a background of proven success Nicholas Reade CEO Walter Francisco Lafemina COO São Paulo Corporate Legal Rio de Janeiro Mid-West Construction Financial Investments Gilberto Relations Denise Luiz F. Moura Ferna

  9. Slide 9: Landbank

    Landbank Land Bank - PSV 20.0  At the end of the second quarter of 2009, 17.0 16.4 15.5 Brascan had a land bank with Potential Sales 15.2 16.0 13.6 14.4 Value (PSV) of R$14.4 billion, an 15.5% increase 13.1 when compared to the pro forma figure of the first 12.0 R$ Billion quarter of 2008. 8.0  Th

  10. Slide 10: Landbank

    Landbank PSV of Land Bank per State – 2Q09  Consistent with the strategy to diversify into the middle and economic segments, Brascan expanded its land bank Ceará Mato targeted to these segments. Currently the middle and 3.4% Grosso Santa 2.0% Mato economic segments represent 81.3% of the land bank.

  11. Slide 11: Brookfield Incorporações – Among the Three Largest

    Brookfield Incorporações – Among the Three Largest Net Income– 2008 (R$ million) EBITDA– 2008 (R$ billion) Source: Companies. Source: Companies. Equity – Book Value x Net Debt/Equity – Dec/08 (R$ million) Market Cap – (08/05/2009) (R$ million) 82% 90% 12000 3,28 3,44 3,50 2,67 64% 80% 3,00 10000 58%

  12. Slide 12: Product Diversification – Launches 1H09 vs. 2009E

    Product Diversification – Launches 1H09 vs. 2009E  Guidance for 2009 launches remains between R$2.5 billion and R$3.1 billion.  In 1H09, 70% of launches targeted the economic and the middle-income segments, with properties priced below R$500 thousand. These products, which are eligible for a mortg

  13. Slide 13: Operating Performance

    Operating Performance 13

  14. Slide 14: Contracted Sales – 1H09

    Contracted Sales – 1H09 Contracted Sales (R$ million) Contracted Sales per Quarter (R$ million) 569 1,344 +86% 1,146 181 +56% 562 145 875 320 327 306 617 207 240 27 258 76 560 23 80 31 10 1,001 58 387 782 668 293 284 537 208 248 251 502 2006 2007 2008 1H08 1H09 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Resident

  15. Slide 15: Launches – 1H09

    Launches – 1H09 Launches (R$ million) Launches per Quarter (R$ million) 2,662 1,120 1,922 1,505 713 702 723 338 +120% +2% 591 344 437 236 858 723 840 267 23 1,584 246 1,157 344 10 369 397 355 701 496 612 265 257 127 2006 2007 2008 1H08 1H09 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Residential Office Residentia

  16. Slide 16: Inventory on June 30, 2009

    Inventory on June 30, 2009  VSO for the residential segment in 2Q09 was 18.3% Inventory per Quarter (R$ million) 1,413 1,849 2,361 3,248 3,256 3,351 90 409 847 1,490 1,522 1,544 1,323 1,440 1,514 1,766 1,726 1,807 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Residential Office 16

  17. Slide 17: Inventory on June 30, 2009

    Inventory on June 30, 2009  Concluded units represents only 4.5% of our inventory. Inventory by Stage of Development - 1H09 (R$ million) Residential % Office % Total % Concluded 150.6 8.3% 1.0 0.1% 151.6 4.5% Under Construction 885.5 49.0% 158.8 10.3% 1,044.4 31.2% Launching 770.6 42.7% 1384.6 89.7

  18. Slide 18: 2008 and 2Q09 Concluded Projects

    2008 and 2Q09 Concluded Projects  Brookfield Incorporações concluded 16 projects in the amount of R$926 million in PSV since the beginning of 2008. BRP's Project Share Average Concluded Projects Type State Saleable PSV Units Price R$/m² area (m²) (R$mm) (R$000) Maison Leblon - Second Phase R RJ 4,0

  19. Slide 19: Financial Performance

    Financial Performance 19

  20. Slide 20: Financial Performance

    Financial Performance Net Revenue (R$ million) Gross Profit (R$ million) and Gross Margin (%) 48.2% 27.3% 75.4% 56.4% 41.6% 40.3% 35.9% 35.8% Revenue Backlog (R$ million) and Backlog Margin (%) Selling and Marketing Expenses (R$ million) 29.4% -23.2% 1,486 8.0% of the -3.7% 1,149 1H08 Net R. 4.1% of

  21. Slide 21: Financial Performance

    Financial Performance General & Administrative Expenses (R$ million) Net Financial Results (R$ million) 47.6% 24.9% 8.0% 7.5% 5.7% 7.4% EBITDA (R$ million) and EBITDA Margin (%) Net Income and Net Margin (R$ million) 34.0% 20.1% 84.0% 126.3% 24.5% 15.1% 22.8% 23.9% 14.9% 12.1% 22.1% 11.7% 21

  22. Slide 22: Financial Performance

    Financial Performance Loans and Financing (R$ million) Jun-09 Mar-09 Mortgage Loans 78 90 Working Capital Loans 600 515 Construction Loans 332 290 Debentures 75 75 Loans from Related Parties 64 64 Total Debt 1,148 1,034 Cash (230) (238) Net Debt 918 796 Shareholders Equity 1,810 1,729 Net Debt / Sha

  23. Slide 23: Capital Market Evolution

    Capital Market Evolution BISA3 Performance # of Trades Thousand Shares R$ 000 6,912 2,911 2,860 2,381 1,295 1,755 1,451 1,590 869 846 560 332 367 1,014 168 104 88 458 110 255 146 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 July Source:Economática 23

  24. Slide 24: Recent Events

    Recent Events 24

  25. Slide 25: Capital Market and Corporate Governance

    Capital Market and Corporate Governance Sale of MG 500 Investimentos Imobiliários S.A..  On July 28, 2009, the Company announced the sale of its indirect subsidiary MG500 Investimentos Imobiliários S.A., a real estate brokerage firm, to Fernandez Mera Negócios Imobiliários. The Company will retain

  26. Slide 26: Presenters

    Presenters Presenters Contact Nicholas Reade Rio de Janeiro Chief Executive Officer  Phone: + 55 21 3823-7699 Luiz Rogelio Tolosa  Av. das Américas, 3434 Bloco II - 6º andar – Rio de Janeiro – Executive and Corporate Relations Officer RJ, Brazil – Cep: 22640-102 Cristiano Gaspar Machado Chief Fina

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