Gafisa S.a. · BMFBOVESPA:GFSA3
Gafisa — Investor Day (December 2012)
45 slides from Gafisa's investor day presentation, Dec 5, 2012
Slide 1: Analyst Day - Sao Paulo, December 5, 2012
, 2012 sa Analyst Day — Sao Paulo, SP December 5*, = a) i= c . ) 2 wn o > & o 2 = G 1)
Slide 2: Safe-Harbor Statement
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
Slide 3: Event Schedule
Event Schedule 8:00am — Welcome Breakfast 8:30am — Opening Speech by Gafisa’s CEO 9:00am — Alphaville Presentation by Marcelo Willer 9:30am — Tenda Presentation by Rodrigo Osmo 10:00am — Gafisa Presentation by Sandro Gamba 10:30am — Financial Review by Gafisa’s CFO 11:00am — Q&A
Slide 4: Opening Speech by Gafisa's CEO
Agenda Opening Speech by Gafisa’s CEO
Slide 5: Corporate Officers
Corporate Officers Duilio Calciolari Andre Bergstein CEO CFO and IRO = At Gafsa since 2000 ~ At Gafisa since March/2012 — Werked in the folloning areas: HR, IT, Finance, - Responsible for Treasury , Corporate Finance, Capital Controlrstip and Investor Relations. D) Markets and Investor Relations. ec
Slide 6: Opportunity
Opportunity Gafisa is a world-class homebuilder in an underserved and growing market. Professional Management Highest Standards of Corporate Governance and Financial Reports! Industry Leadership and Strong Brand Recognition ) G f Strategic Land Established Bank positioned Organization and eliza Uniq
Slide 7: Shareholder Structure, Corporate Governance and Liquidity
ess Zico a = AGafisa 80% 100% rey alphaville @TENDA Avg. Daily Trading Volume (R$ mm) - Last 90 days* % a 58 4s 30 || : mAGafsa Poor 1 5 Poor2 @ Poor3 @ Poors » Poors ‘Source: Bovespa and Bloomberg Shareholder Structure, Corporate Governance and Liquidity True corporation listed on the NYSE and the
Slide 8: Segments
segments AGafisa Mid and Upper-Mid Unit price: > RS250 thousand 54% 64% 52% Tara Sao Paulo and Rio de Janeiro 27 projectsiphases in 9M12. a (4,735 units), RS1,7bn Vertical cone Custom projects Unique Platform for Business alphaville Mid and Upper-Mid Unit price: RS100 — RS500 thousand 46% 39% 11% Br
Slide 9: Gafisa Well Defined Strategy
Gafisa Well Defined Strategy Financial and Investment Discipline Gafisa's Strategy Establish itself as the leader in residential development company in Brazil in terms of sales, profitability and product quality Via VA Focus on High Return Opportunities Deleveraging. Achieve a more adequate Net Debt
Slide 10: Value Enhancement Strategy - Back to Basics
Value Enhancement Strategy - Back to Basics In order to increase the cash flows from existing assets to the firm, we've decided to @ Reduce the volume of launches by reducing @ increase the stake of most profitable segments/projects to increase the Teinvestment and/or working capital needs Tetums fr
Slide 11: Focus on Positive Cash Generation - Deleveraging Strategy
Focus on Positive Cash Generation — Deleveraging Strategy + Across the Group, 9M12 unit deliveries were consistent with the Company's full-year target + — Consolidated free cash generation was positive at around R$149 million in 3012 + — Consolidated operating cash flow reached R$607 mn in 9M12; 87%
Slide 12: Results driven Strategy
Results driven Strategy: 1. For 2012, launches are expected to be between R$2.4 and R$3.0 billion 2. _In9M12, the Company delivered 17,729 units and transferred 9,567 Tenda units to financial institutions 3. The Company reached the guidance of operating cash flow generation between RS500-R$700 milli
Slide 13: Alphaville Presentation by Marcelo Willer
Agenda Alphaville Presentation by Marcelo Willer 2
Slide 14: Alphaville
Alphaville = Residential land communities with lots over 360m? = Ticket over R$130 thousand = High quality _infra- structure Concept AlphaVille Terras Alpha = Residential land communities with lots from 250m? to 360m? = Average ticket of RS80 thousand = Optimized infrastructure leveraged by AlphaVil
Slide 15: Alphaville is Ready to Leap & Lead
Alphaville is Ready to Leap & Lead and take the Company to even Greater Stages Launches Contracted Sales High ROCE AUSA high due to lower capital employed (specially accounts receivable) 2007 2008 += 2009 2010S 2011 OMI. 2007 2008 ++ 2009-= «0102011 += OM
Slide 16: AlphaVille leads sector margins
EZTEC EVEN HELBOR Rodobens Cyrela MRV Tecnisa Rossi SECTOR Direcional Gafisa Group Trisul PDG Brookfield Viver AlhpaVille leads sector margins In the 9M12, AlphaVille had highest gross margin in the sector Gross Margin 9M12 32% 31% 30% 30% 28% 28% 28% es 27 27% 26% 23% 10% 7% AlphaVille Segm. iA 54%
Slide 17: National Presence
National Presence O/ «€ million m2 delivered and being executed 111 million m2 in projects to be developed # 49 projects delivered (42MM m?) # 20 projects being executed ( 15MM m) 84 Residential and 46 Comercial 21 States — 44 Cities
Slide 18: Expertise in complex approval processes
Expertise in complex approval processes Need for expertise in processes of approvals of land subdivisions serves as strong entry barrier for new players in this market... ar] itogare Project Marketing Construction Occupation Prospecting pees and Sales 4 | = Project Analysis, including legal, environ
Slide 19: Alphaville Continues to Launch Good Demand Developments
Alphaville Continues to Launch Good Demand Developments = Greater participation in the total product mix = 47% of the total launches in 9M12 vs 21% a year ago = Sales from launches represented 81% of total sales, while 19% corresponded to sales from inventory = Alphaville delivered 2,612 units durin
Slide 20: Alphaville Sergipe
Alphaville Sergipe Development phase | was sold out in 4 brokers and 500 sales people. During the weekend of September 28, launch of Terras Alphaville Sergipe | sold out during the Taunch day (PSV of RS55 million) Case — Sergipe Urban Sprawl Master plan Alphaville Sergipe 971.546 m? 28.980 m? = 657
Slide 21: Tenda Presentation by Rodrigo Osmo
Agenda Tenda Presentation by Rodrigo Osmo a
Slide 22: Tenda Executive Summary
SEGMENT UPDATE TENDA Tenda Executive Summary The low-income segment has a large latent demand, and is more dependent on public policy than the general conditions The key success factors in this segment are linked to cycle efficiency and financial performance of the works, and seem to be quite replic
Slide 23: Houses for C and D classes
Houses for C and D classes Will grow ~100% 2005-15 Crescimento de moradias (em milhdes) 20M: 15 The low-income market is expected to grow faster than the other segments and has an interesting potential size The potential market for the low-income | MCMV increased purchasing power of is estimated at
Slide 24: Tenda's segment must be dominated by big players
Tenda’s segment must be dominated by 3 or 4 big players = Efficiency and scale are fundamentals to operate in in industrial model - National scale generates cost savings (experience, Market must be technological advancement, negotiations) dominated by big I bao = CEF maintain a differential relation
Slide 25: Aluminum molds benefiting Tenda
sector, benefiting Tenda ALUMINIUM MOLD LOGIC = Solves workforce problems - Smaller workforce - Molders do not compete with conventional or structural masonry - Final product quality less dependent on workforce » Permits greater growth velocity > Smaller quality deviations = Much shorter job cycle (
Slide 26: Financial cycle seems well settled
Financial cycle seems well settled Comparison btw theoretical receivables, peers (2011) and Tenda current levels Average Time Contract Signing" Days of accounts receivables (low income business) 14 700 dias) 647 12 600 10 407 400 375 383 . r 126 222 4 200 2 3 o v) TENDA 3012 TENDA 3012 (New Teorico
Slide 27: Revisions of project resulted in significant cost reductions
40 20 Revisions of project resulted in significant reductions in the cost of future projetcs to be launched Costs ReMunts A 6 q 1 ‘4 57 48 Initial costs Indirect Tower Infra-structure Foundation Estimated costs Reduction 2
Slide 28: Run-off Tenda expected to be concluded in 2013
Run-off Tenda expected to be concluded in 2013 (1) # construction sites - run-off Tenda 4a11 1012 2Q12 3Q12 4Q12 1013 2013 3a13 4Q13 1014 # Construction sites 84 84 7 67 47 27 19 ai 9 6
Slide 29: Tenda Strategic Priorities
Tenda Strategic Priorities C1) Focused on the execution of the old legacy - Implementation of operational controls - Continued improvement in financial cycle - Execution of works without additional cost overuns (2 ) Continue to build the landbank in the main markets to the launches for the first 3 y
Slide 30: Gafisa Presentation by Sandro Gamba
Agenda Gafisa Presentation by Sandro Gamba
Slide 31: Gafisa's Focused On Strategic Markets, SP and RJ
Gafisa’s Focused On Strategic Markets, SP and RJ * Gafisa was able to launch 53% of the mid-range of 2012 guidance of R$1.5 billion for the segment + Inthe 9M12, 100% of Gafisa’s segment launches were in SP and RJ region + Lower margin projects are being delivered and the Other Market projects are e
Slide 32: Gafisa is Back to the Basics
Gafisa is Back to the Basics Narrowed Geographic Focus 2008 2009 2010 2011 9M12 SP mRJ mOther SP BJ "Other SP =RJ "Other SP =RJ "Other SP =RJ "Other 2008 2009 2010 2011 9M12 @o@5 45°. 7% SP =RJ "Other SP mRJ mOther SP mRJ mOther SP mRJ mOther SP mRJ mOther racted
Slide 33: Gafisa is Back to the Basics
Gafisa is Back to the Basics Launches Pre-Sales 2155 2157 1913 peal 67 2008 2007 2008 2009 2010 2011 9M12. 2006 2007 2008 2009 2010 2011 9M12 @ Gafisa Seament Sao Paulo @ Gafisa Segment Sao Paulo Sales Speed Net Revenues ay =) => 5 =. = 2006 2007 2008 2009 2010 2011 9M12
Slide 34: Unit Delivery Consistent with Full Year Guidance
Unit Delivery Consistent with Full Year Guidance During 9M12, Gafisa delivered 27 projects / phases and 4,735 units, representing R$1.7 billion in PSV Gafisa Segment Units Delivered 9M12 by Market # units delivered at Gafisa Segment (2008-9M12) av. aR =NM | 9M12 4.735 2011 5.593 2010 2.723 2009 1.84
Slide 35: Cases Gafisa
Cases Gafisa Market Region Date # units Total PSV (R$) Average unit price Launch date VSO (6 months) VSO (12 months) Cost overrun as a % of original budget Delay in the delivery (months) Gross Margin (%) IRR NIPV@12% NET/NET: PROJECTA PROJECTB PROJECT C | Sao Paulo New Market | oct-12 sep-12 | 266 2
Slide 36: Financial Review by Gafisa's CFO
Agenda Financial Review by Gafisa’s CFO
Slide 37: Highlights and Recent Developments
Highlights and Recent Developments Gafisa is implementing its new turnaround strategy Focus on cash generation and deleveraging of the balance sheet. Cash position of R$1,2 billion in September 2012. Cash generation of R$149 million in 3Q12 and R$304 in 9M12. Alphaville: Greater participation in the
Slide 38: Inventory at Market Value
INVENTORY AT MARKET VALUE Oxms OVER (2) SALES OVER LAUNCHES (%) SUPPLY SoS (%) Sales from Launches have Remained Healthy, Despite Lower Sales over Supply Y-0-Y [SS SSS ice Adjust +| Inventot Others EoP2 Gafisa (A) 1.875.945 114.291 -327.990 -1.998 1.660.248 -11,5% 16,5% Alphaville (B) 572.898 337.65
Slide 39: Consolidated Margins Have Not Yet Reached Normalized Levels
Consolidated Margins Have Not Yet Reached Normalized Levels Legacy Projects with Lower Margins, To Be Delivered in the Short Mid-Term Contribution by Brand - 9M12 Tenda Total 9M12 pl Net Revenues (RSmm) 2.112.269 | | i Revenues (% contribution) 70% | 30% | 100%! Gross Profit (RSmn) 647.344 | 141.509
Slide 40: Operating Expenses
Operating Expenses * The selling expenses remained stable on a Y-o-Y basis at R$70 million; decreased 11% sequentially. * During the 9M12, administrative expenses reached R$253 million, a 43% increase compared to the R$176 million posted in the 9M11, as a result of: 1) aprovision related to the dist
Slide 41: Gafisa Group Revenues From Previous Launch Periods
Gafisa Group Revenues From Previous Launch Periods Ano Langamento PreSales 9M12 % PreSales Revenues fo PreSales 9M11 Despite the strong results in Pre-sales, we are still recognizing previous years %PreSales Revenues % 2012 Launches 465,227 42% 58,089 4% - 0% 2011 Launches 214,036 19% 276,275 17% 1,
Slide 42: Backlog of Results Reached R$1.31 bn
Backlog of Results Reached R$1.31 bn Gafisa pre-sales performance will positively impact future earnings Gafisa Group Consolidated Results to Be Recognized (REF) (R$ a eC CE) ion) Results to be recognized 3.702.549 4.124.151 10% 4.276.647 13% Costs to be incurred (units sold) (2.390.611) (2.648.148)
Slide 43: Project finance represents 52% of total debt
Project finance represents 52% of total debt Consolidated free cash generation of R$149 million in 3Q12, R$304 mn in 9M12; expanding leverage absorption capacity Corporate debt accounted for 48% of total debt by the end of September 30, 2012 vs. 49% in the 2012 49% of short-term debt is represented
Slide 44: Well Structured Debt Schedule and Profile
Gafisa has R$1,4 bi accounts for 49%. Well Structured Debt Schedule and Profile n or 38% of total due to short term. Of this total, project finance " Until Until Until After soaeetoces| soos [sexe | sanits Debentures - FGTS (A) TR+(8,22%-10,20%) 1.241.860 318715 473.145 360.000 100.000 Debentures -
Slide 45: 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 5, 2012 Gafisa S.A. By: /s/ Alceu Duílio Calciolari Name: Alceu Duílio Calciolari Title: