Gafisa S.a. · BMFBOVESPA:GFSA3
Gafisa — Investor Day (December 2013)
61 slides from Gafisa's investor day presentation, Dec 18, 2013
Slide 1: Investor Day
INVESTOR DAY December 18, 2013 AGafisa
Slide 2: Safe-Harbor Statement
Safe-Harbor Statement ‘LGafisa 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
Slide 3: Agenda
1 ‘Strategic positioning - Duilio Calciolari 2. Gafisa Sandro Gamba Tenda — Rodrigo Osmo Alphaville — Marcelo Willer Supply Chain & Gafisa Service Center ~Luiz Carlos Si Finance ~ Andre Bergstein Conclusion and Closing Remarks — Duilio Calciolari QA
Slide 4: Strategic Positioning
STRATEGIC POSITIONING Duilio Calciolari CEO AGafisa
Slide 5: Organizational Structure
Organi ional Structure ‘LAGafisa Gafisa Management Dullo Calcolari “Andre Bergstein 9g ceo 9 CFO and RO
Slide 6: Strategic positioning: Complexity Reduction
Strategic positioning ‘LAGafisa Complexity Reduction 2012 2013 2014... 1 Phase one Phase two Phase three *+ Focus Gafisa’s operations on markets with proven expertise and strong performance (SP and RI) + Restructuring of Tenda’s business model: (operate in 4 macro regions - Launch of contracted proj
Slide 7: Strategic positioning
Strategic positioning ‘LAGafisa 2012 2013 2014... Phase one Phase two Phase three * Strategically grow Gafisa and Alphaville, through the allocation of capital * Resume Tenda launches as we finalize the delivery of legacy projects and establish a new model * Focus decisions on the medium and long te
Slide 8: Strategic positioning: Main Drivers
Strategic positioning ‘LAGafisa Main Drivers 2012 2013 2014... Phase one Phase two Phase three * Settlement of Alphaville operation * End of turnaround cycle (1H14) es 2014 suidance: Policy Long Term Profitability AGafisa GTENDA Leverage 55% — 65% R$1.5-1.7bi R$ 600-800mm Goal Focus on Profitability
Slide 9: Gafisa
GAFISA AGafisa Sandro Gamba
Slide 10: Gafisa Strategy
in Strategy ‘A Gaf sa Rio/SP markets Consoli ation of operal established guideline/strategy. ‘Operations in RSP markets In results projected for 2014 co 6 NM © ® = as Margin by market (201 ~ 302013) som NM 00% R 0
Slide 11: Landbank profile
Landbank profile ‘A Gafisa In line with the Company's operating strategy a Se ¥- Landbank focus on strategic markets (SP + RJ), supporting launches for the next three years. Cty of 5 ¥ Current landbank with 36% acquired 2ariai0 a swap Rn Expected ‘ety of 30% .. 37% 000 -Now2033
Slide 12: Launches Strategy
Launches Strategy ‘A Gafisa ‘Acquisitions aligned to launches strategy ¥- Gafisa’slandbank is predominantly composed of two main real estate developments profiles
Slide 13: Product Segmentation
‘LAGafisa Product Segmentation ‘Standardization of operating segments Customers clusters segmentation project development to seek greater assertiveness on the product and ‘communication approach and better understand the public to serve in the most appropriate way. Of ames Eom os questions lotsfor ‘
Slide 14: Market in growth recovery
‘LAGafisa Market in growth recovery Launched PSV Evolution (R$ MIM) Greater SP Launched PSV Evolution (R$ MM) RIO+NIT 002 395 ‘sos 1607 cs 60% sos sos = ex 66% 795 , @ 4081 ms a 4013 and ¥TD wth vale up 32/15 om
Slide 15: Sales Management
Sales Management ‘A Gafisa monty onagenent gudenes Dat evoitan of sles penn oBsecrive [en Visits and conversion eal estate companies’ goal Mic and Busnes Planing Focus Goal forthe yar AX. =— FORECAST Launches management WF Billing process Vv Credit before sale Vv eee ——— a wos Renn ee oe ponee PIPEL
Slide 16: Sales Management: Gafisa Sales and Online Channel
Sales Management ‘A Gaf sa Importance of Gafisa Sales and Online Channel - Gafisa Sales is gaining more space and currently represents 54% of Gafisa sales, thereby reducing the dependence on third parties and ensuring greater control over the sales process. 2 Sales (SP+RJ 9M13)
Slide 17: Construction Management
Construction Management A Gaf sa Improvements. Cost Control and Management Integrated planning, control and supply chain operation processes to meet the company’s demands for goods and services, with the best Solution , Specification, Quantity, Price, Term and Place. Implementation in 2012/2013. ca
Slide 18: Logistics in the works
Logistics in the works ‘LAGafisa Cost Control and Management
Slide 19: Customer Relations
Customer Relations ‘LGafisa Dissemination of Deployment of Implementation Improved Customer Caltre new relationship of CRM Dynamics communication aaa and Platinum Control, internat pete ig maar Customer Service Processes and perroains the, Program (Vver communication Bem) tous CoE with the customer
Slide 20: Brand Strength
Brand Strength ‘According to annual research conducted bya third party Peer 5 ‘company, Gafisaleadsthe peer? 5 ‘main KPls demonstrating brand strength in the market. Peer3 4 Peer 3 Peers 3 Peer 2 3 5 2 2 6 4 te tauty T Dectning uty rr) 15
Slide 21: Tenda
TENDA AGafisa Rodrigo Osmo
Slide 22: Construindo Felicidade: Legacy run-off
© TENDA Construindo Felicidade Y Legacy projects less relevant in 2014. Tenda Legacy Run-Off - R$ 000 aur qs % Solved Units to Deliver ssa 7387 763% ‘Accounts receivable + Invetory (PSV) 374933 922,848 75.6%
Slide 23: Tenda's New Model
TENDA Tenda’s ‘New Model’, is based on 4 pilla ALUMINUM TRANSFER OF MOLD SALES CONTRACTING IN STORE LAUNCHES SALES
Slide 24: Pillars: New Tenda Model
Pillars: New Tenda Model @ ‘Aluminum Mold X Structural Masonry jons Physical examination Conditions to obtain advantage in costs ~ Minimum of2 molds per project (1,000 un /yeat *¥ Continuous production (MDO own structure) Benefit of Concrete Adittional Bene! (2) accelerated receving (associative fin
Slide 25: New Model
New Model @ Despite lower gross margins, transferred sales create more value veuxTiR Cath Exposure eogeaaas sEREETH EEE
Slide 26: New Model: Elimination of technical and legal risks
© TENDA Construindo Felicidade New Model * Elimination of technical and legal risks ‘Technical risk Eliminated Cost Term ‘Change in the feasibility guideline from water supply, sewage and energy utilities Z ZG (design change) Change in the agreements for environmental licensing between the municipal
Slide 27: Tenda in-store sales
TENDA 4% Sales Cost/PSV ® 0% Y Instore sales allow a more competitive S&M expense eve st sn Units sale/Month @eanesreesaass aarnae large Store —=Medium Store Small store Source: Sales nd Marketing nancial Planing MRV Rests Ad jonal Bene! ‘stone Y tigher economics copared to stands (demolished) Takes
Slide 28: Target Markets
© TENDA Construindo Felicidade Target Markets ¥ Minimum scale of the mold restricts Tenda’s full potential to 16 Operation Spots and 31,000 units per year [RMSP~Leste/Oeste 35 1,008,519 4500 Pon 2 260,710 24000 Zona Oeste/Norte 1s 509.311 2,000 vsabador 5 3e9894 3,000 anecte 10 a7.20 2500 wan 5 461,
Slide 29: Competition
‘Competition ¥ Complex implementation has driven away large players, reducing the competition aunches Types | and II (R$ blon) 1050 7.40 7.60 4.60 a 7 2009 2010 2011 2012 2013
Slide 30: Financial Model
© TENDA Financial Model Construindo Felicidade ¥ Short transfer period for “new” sales and high sales velocity have important impacts on the cash exposure of our projects @ Average Ti 1011 2011-3011 4Q1_1Q12_2QI2_— 312 -4QI2_—-1013. 2013-3. feTotal_mNew Sales
Slide 31: Financial Model
© TENDA Financial Model Construindo Felicidade Accelerated financial cycle, developments with sale time of less than 15 months and flexibility to start well sold projects reduce the need for working capital Project Indietrs in of PSV Free Cash ow Land in Cash om om om 08 08 mm ~ o 08 PPoesegesmunDue
Slide 32: Key Performance Indicators
© TENDA Key Performance Indicators Construindo Felicidade + Achieve attractive profitability from an operation of approximately RS 1 billion * MCMV depends on political programs + Equate G&A to a legacy free scenario Sie crconnnuny res * Create landbank for operational continuity (directed funding >
Slide 33: Performance
© TENDA Construindo Felicidade Performance ¥ Launches performing well to date, but still early for smooth execution of works Launch date Mar/i3 Mai/13 Mar/i3 ya Ago/t3 Now/13 (ty Units 380 240 440 360 260 300 CRSMT MM 565.105 RS31220 ——AS.45.903_—AS 38563 ——ASAO.BA? —_—RS 39.713 Sales 375 m7 17 22 1
Slide 34: Alphaville
ALPHAVILLE AGafisa Marcelo Willer
Slide 35: Introduction
re" Introduction alphaville
Slide 36: Alphaville
Alphaville alphaville Alphaville Brand&Footprint 2 projects being executed (19 MN) Qe alphaville 98 residential phases and 54 commer 21 States and 53 Citi the positioning and visual ‘+ The Alphaville brand is mainly associate million m? e 3 cto 186 Alphaville << .ieosUrbanoe be developed sete rosa u
Slide 37: Main Highlights
Main Highlights alphaville + Since 1973, leader in urban development in Brazil ‘Strong brand recognition with reputation for excellent quality Nearly forty years experience in the complex process of approving subdivisions * National Presence and consistent history of growth Launches CAGR of 37% in t
Slide 38: Organizational Structure
Organizational Structure alphaville
Slide 39: AUSA structure
AUSA structure alphaville ackstone and Pa + Continued growth, with a focus on profitability to sustain cash position ‘+ Increase the efficiency of the most important processes: Land acquisition and launches + Structuring own Alphaville back office ‘Supported by the values of Blackstone and Patri + L
Slide 40: Operational Highlights
Operational Highlights History of solid growth Guidance 38 1343 RS1.3~RS15 Bn 610 I a i 2007 2008 2009 2010 20112012 9M3 1057 a9 17 215264 al 2007 2008 2009 2010 2011-2012 9M13 alphaville 842 599 377 367 A 300 ii | i 2007 2008 2009 2010 20112012 9M13 6% 5m 59% a om sex I Average: 55% 2007 2008 2009
Slide 41: Financial Highlights
Financial Highlights alphaville Proven profitability sucessful track record and profitability under Gafisa’s management > Initial equity of just R$ 50 MM in 2007 ee) ee om ae 18% Fry ead 2 I 247 ani I gs i af = 2007 2008 2009 201020112012 9M13, 2007 2008 2009 20102011 7012 9MI3, I 2% a 79% ome es on
Slide 42: Gafisa Service Center
GAFISA SERVICE CENTER Luiz Carlos Siciliano AGafisa
Slide 43: Strategic view
Strategic view ‘LAGafisa Supplies Dept as responsible for the supply chain Integrated planning, control and supply chain operation processes to meet the company’s demands for goods and services, with the best Solution , Specification, Quantity, Price, Term and Place. act pain — Logistics] Delivery L
Slide 44: Results Achieved: Cost and Control Management
Results Achieved ‘A Gafi sa Cost and Control Management Price Evolution The price evolution is below the INCC index, both in specific items and in the basket of items as a complete work 16% 202 197 14% 12% 10% 104 8% 6% a2 4% 2% 0% Jan/i2- May/t2 Sep/t2 Jan/33 May/13.—Sep/3 447% 2010-20112 2012-2013
Slide 45: Results Achieved
Results Achieved AGafisa igating risks by monitoring suppliers ‘ performance Construction Category supplier a
Slide 46: SSC — Shared Services Center
SSC — Shared Services Center ‘A Gafisa Scenarios * Concept created in the + Since 2000, Brazil follows the 60s and implemented in strong trend in the the 80s by GE and HP. implementation of SSCs in various segments. + Nowadays approximately 900 SSCs operate in the + In 2012 Brazilis home to World in
Slide 47: Management, Control and Innovation
Management, Control and Innovation sep/tt oan ‘augli2 Feb/i3 on/13 Registration ‘Accounts Receivable | | staff Adm Gafisa and Tenda CRC | | Administrative Legal Work Accounts Payable Gafisa Creat Condominium/PTu | F Tenda Collections CRC Bank Control Tenda Credit Tenda Collection: Tenda scheduling C
Slide 48: Next Challenges
Next Challenges ‘A Gafisa Innovation SPIN OFF OF 1 ALPHAVILLE BUSINESS UNIT 2 TURNOVER UM. + Impact already mapped * Assimilation of new activities * Higher productivity at lower cost + Ensure there is no impact for Tenda and Gafisa
Slide 49: Finance
FINANCE AGafisa Andre Bergstein CFO
Slide 50: Highlights and Recent Developments
Highlights and Recent Developments ‘LGafisa Paving the Way to Profitability Y Strengthening the capital structure Y Dividend / interest on capital & Buyback Program ‘+ Completion of the sale of 70% of Focus on SP + Rio CTEN IEEE + Profitability track record in *+ Total sale value of RS 1.54 billion
Slide 51: Capital Structure
Capital Structure AGafisa Net Debt Net Debt / Equity (%) 3245 260% pan 118.1% 2519 2396 2456 25 93.0% 962% 3.8% beans som 5% 1201 [ | 478% 210 20 2021013. 2013. 3013 3013 2008 2009 2010 2011 2012 1013013. 3013. 3013, 24 aay | ‘+ 48% reduction in leverage level (net debt/equity) ‘+ The sharp drop in
Slide 52: Capital Structure
Capital Structure AGafisa Indebtedness structure linked to projects in3013 an 700M + New indebtedness profile best suited to the operating cycle of the Company. * Reduction in the Projects/Corporate Debt ratio estimated for 2014 > 58% *+ Perspective of reduction in the 52.8% 52.6% capital cost befor
Slide 53: Financial Flexibility
Financial Flexibility ‘A Gafisa ‘Operating Cash Generation and Liquidity Receivables !"ventoryat Tota} Cost incurred Sal e 3377 1864 5281 1561 ‘generation in the last 2 1,000 ns ans 264 ‘years > RS 1.3 Billion 77 379 6 4325 ‘Operating Cash Flow ~ Gafisa and Tenda Gafisa and Tenda a 1.00 tntlows Bast
Slide 54: Financial Flexibility
Financial Flexibility ‘A Gafisa Final cycle of the turnaround process Improved Performance Operational complexity reduction Operational Efficiency Consolidation in strategic markets - Cost Reduction Efficient processes and cost management ° | =o ‘#-Gafisa Consolidated m as om | mm mPeers 2011 2012 3
Slide 55: Profitability
Profitability ‘A Gafisa AGafisa— ROCE 14% - 16%
Slide 56: Corporate Governance
Corporate Governance ‘AGaf sa Board of Directors mostly independent (8 ouf of 9) cesss GFA * Audit, Compensation, Appointments and menses Nee Governance Committees are composed by independent members of the Board of Directors AGafisa eaten with over 20 years experience in the * 100% common shares (N
Slide 57: 2013 Expectations
UEEEE2013 Compliant unica rico I! Launches 307,553, 461,043, Sales 218,281 553,639 Deliveries 1,300 3373 Pcs yro* Launches 1431452 2,698,396 sales 1,097,531 2,298,445, Deliveries 3,759 11,400 * nfo until 12/15. 3013 M13 498,348 1,266,943, 428,994 1,200,914 3,106 7779 2013 expectation with numbers al
Slide 58: Wrap Up — Market Target
Wrap Up — Market Target ‘AGaf sa Gafisa x Turnaround x Premium Peers ES Ss Drecwsenverscecsin sie — — = — = i = a — : ; il === = em ot el (2109 resrease)
Slide 59: Conclusion
CONCLUSION AGafisa Duilio Calciolari CEO
Slide 60: Strategic Positioning, Less Complexity, New Capital Structure
STRATEGIC NEW CAPITAL LESS COMPLEXITY POSITIONING ‘STRUCTURE + Operation Focus on more Proper leverage Management and profitable markets \ Aer een Improved liquidity + Legacy problems are in the past New Tenda Model Profitability and Capital Discipline and lower cost of capital
Slide 61: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: December 18, 2013 Gafisa S.A. By: /s/ Alceu Duílio Calciolari Name: Alceu Duílio Calciolari Title: