3. Highlights of the Quarter
2Q09 launches decreased 56% from 2Q08 based on conservative launch strategy
Launches declined to R$626 million in 2Q09 from R$1,409million in 2Q08
Pre‐sales increased 9% from 2Q08; sales velocity reached 24%
Pre‐sales rose to R$835 million in 2Q09 from R$764 million in 2Q08
Net operating revenues rose 54% f
from 2Q08
Net operating revenues increased to R$706 million in 2Q09 from R$459 million in 2Q08
2Q09 adjusted EBITDA reached R$142 million (20.1% EBITDA margin), a 69% increase over 2Q08
Net income before minority interest and stock options increased to R$81 million in 2Q09, a 26%
increase from R$64 million in 2Q08. Net income was R$58 million in 2Q09
R$600 million debenture was received in early May and disbursed to Tenda. Funds are available for
any project meeting Caixa specifications
In this quarter, Tenda completed 29 projects totaling 2,151 units, Gafisa completed one project and
Alphaville completed a project in Campinas‐SP with 390 lots
3
4. Recent Developments
Strong Sales Performance of Mid/Mid‐high Segments: Gafisa and Alphaville experienced strong
sales, representing 56% of the consolidated figure.
Affordable Entry‐Level Segment: 2Q09 sales were R$367 million on 4,366 units sold at an average
price of approximately R$84,000. Tenda’s customers benefit from the government’s housing
program, Minha Casa, Minha Vida.
Diversified Geographies and Products: the company continues to strengthen its well‐known brands.
2006 Debenture Covenant Successfully Renegotiated with 97.65% of approval.
Gafisa Completed Second Securitization with immediate net cash proceeds of R$70 million.
Cancellation of Public Offering of Shares: Gafisa cancelled the offering on July 13, 2009. The funds
were not required to achieve our 2009 objectives.
Sarbanes‐Oxley: we have been certified as “SOX” compliant.
4
5. Gafisa: Business Model
Gafisa is a residential homebuilder with product lines divided by income segment and national
Gafisa is a residential homebuilder with product lines divided by income segment and national
footprint
ics
Characteristi
Vertical Horizontal / Vertical Horizontal lot development
Metropolitan areas Metropolitan areas and surroundings Suburban areas
Custom projects Standardized products Custom projects
Unit price: R$50 – R$200 thousand
Unit price: > R$200 thousand Unit price: R$70 – R$500 thousand
Price
Financing: Caixa and Banks
Financing: Banks Financing: Direct
Caixa representative
s
Sales
32 t il l ti 8 i l ffi
32 retail locations, 8 regional offices,
In‐house sales force and brokers In‐house sales force and brokers
in‐house sales force and brokers
verage
46 cities / 18 states 64 cities / 12 states 26 cities / 16 states
Cov
High / Middle High Affordable / Entry Level Residential Communities
income
5
7. Conservative Approach Towards Launches
2Q09 Launches (R$ million)
2Q09 L h (R$ illi ) 2Q09 Launches by unit price
2Q09 L h b i i
R$ million
2,730 (%Gafisa) 2Q09 2Q08
Gafisa ≤ R$500 k 225 454
> R$500 k 127 142
1.483 ‐71% 352 596
Total
1,409 ‐56%
Alphaville > R$100 k; ≤ R$500 k 82 102
160 Total 82 102
711
626 787
102 192
192 1.086 104 Tenda 1) ≤ R$130 k 64 572
596 82 128 139
352 490 > R$130 k
0 Total
T l 192 711
2Q08 2Q09 1H08 1H09
Gafisa Alphaville Tenda Consolidated Total 626 1,409
1) Includes Tenda and Fit Residencial in 2008
2Q09 Launches by region
2Q09 Launches by region
Other
33%
São Paulo
55%
12%
Rio de Janeiro 7
8. Strong Pre‐Sales: Significant Inventory Reduction
2Q09 Pre‐sales (R$ million)
2Q09 P l (R$ illi ) 2Q09 Pre‐sales by unit price
2Q09 P l b it i
R$ million
‐3%
1,432 1,394 (%Gafisa) 2T09 2T08
Gafisa ≤ R$500 k 225 454
> R$500 k 127 142
566
+9% 620 Total 352 596
835
764 132
114 Alphaville > R$100 k; ≤ R$500 k 82 102
317 367 Total 82 102
75 79
734 660 Tenda 1) ≤ R$130 k 64 572
372 390 > R$130 k 128 139
Total
T l 192 711
2Q08 2Q09 1H08 1H09
Gafisa Alphaville Tenda Consolidado Total 626 1,409
1) Includes Tenda and Fit Residencial in 2008
2Q09 Pre‐sales by region
2Q09 Pre‐sales by region
Other
34% São Paulo
45%
21%
Rio de Janeiro 8
9. Sales Velocity and Inventory
2Q09 Sales velocity (R$ million) Inventory reduction (R$ million)
Inventories
Sales Sales speed
end of period
end of period
Gafisa 1,542 390 20%
3,394 ‐ 465
Alphaville 203 79 28%
2,929 ‐ 250
Tenda 934 367 28% 2,679
2 679
1,402
1,149 934
Total 2,679 835 24%
215
199 203
1,777 1,581 1,542
2Q09 Sales per launch year (R$ million)
Inventories 4Q08 1Q09 2Q09
Sales Sales speed
end of period
Gafisa Alphaville Tenda
2009 Launches 292 216.6 43%
2008 Launches 1,183
, 274.1 19%
2007 Launches 860 249.2 23%
≤ 2006 Launches 344 95.5 22%
Total
Total 2,679
2 679 835.4
835 4 24%
9
10. 74% of inventory consists of launched developments not yet started
or up to 30% completed
or up to 30% completed
Completed units represent only 7% of the total PSV available for sales
R$ 000
Up to 30% 30% to 70% More than 70% Completed
Company Not started Total
constructed constructed constructed units
Gafisa 463,651 735,696 338,077 47,520 160,214 1,745,157
Tenda ,
345,625 428,962
, 43,977
, 82,892
, 32,552
, 934,007
,
Total 809,275 1,164,658 382,054 130,411 192,766 2,679,165
10
11. Diversified, High‐Quality Land Bank Provides Strong Platform for
Growth
303 different sites, in 21 states
Potential units Potential units PSV R$ million
% Swap Total
(%Gafisa) (100%) (%Gafisa)
Gafisa 20,060 23,869 7,317 42%
Alphaville 22,008 35,501 3,133 97%
Tenda 61,721 63,028 5,544 15%
Total 103,789 122,397 15,994 73%
73% acquired by swap agreements.
Affordable entry level represents 59% of potential Gafisa units in land bank.
11
13. 2Q09 Financial Highlights
Net Revenues (R$ million)
Net Revenues (R$ million) Gross Profit (R$ million)
Gross Profit (R$ million)
29.6%
27.1%
706 191
+54%
+41%
136
459
2Q08 2Q09 2Q08 2Q09
Net Revenues Gross Profit Gross Margin
Adjusted1 EBITDA (R$ million)
dj d ( $ illi ) Net Income2 ( $ illi )
(R$ million)
14.0%
20.1% 11.5%
18.4% 142 81
+69% +26%
84 64
2Q08 2Q09 2Q08 2Q09
EBITDA EBITDA Margin Net Income2 Net Margin
1: Adjusted for non‐cash stock option expenses.
2: Before minority shareholders and stock option expenses
2: Before minority shareholders and stock option expenses
13
14. EBITDA adjusted to include non‐cash stock option expenses
increased 69% over 2Q08
2Q09 Adjusted EBITDA (R$ thousand) 1H09 Adjusted EBITDA (R$ thousand)
Gafisa Tenda Total Gafisa Tenda Total
Net profit 43,724 14,044 57,768 Net profit 73,698 20,804 94,501
(+) Financial result 13,783 (1,063) 12,720 (+) Financial result 23,543 (1,614) 21,929
(+) Income taxes 16,037 4,584 20,621 (+) Income taxes 26,378 10,556 36,934
(+) Depreciation and Amortization 2,306 4,093 6,399 (+) Depreciation and Amortization 7,652 6,730 14,382
(+) Capitalized interest 16,164 5,152 21,316 (+) Capitalized interest 31,840 7,351 39,191
(+) Minority shareholders
( ) Mi it h h ld 10,244
10 244 9,365
9 365 19,609
19 609 (+) Minority shareholders
( ) Mi it h h ld 17,576
17 576 13,789
13 789 31,364
31 364
EBITDA 102,258 36,175 138,434 EBITDA 180,687 57,615 238,302
(+) Stock option plan expenses 1,235 2,515 3,750 (+) Stock option plan expenses 7,782 4,531 12,313
Adjusted EBITDA
Adjusted EBITDA 103,493
103 493 38,690
38 690 142,184
142 184 Adjusted EBITDA
Adjusted EBITDA 188,469
188 469 62,146
62 146 250,616
250 616
Net revenues 444,390 261,428 705,818 Net revenues 776,604 471,101 1,247,705
Adjusted EBITDA margin 23.3% 14.8% 20.1% Adjusted EBITDA margin 24.3% 13.2% 20.1%
Note: Gafisa's EBITDA includes negative goodwill amortization (net of provisions) from deal with Tenda
14
15. SG&A
‐ T d ’
Tenda’s consolidation as well as marketing and sales efforts impacted SG&A ratios
lid ti ll k ti d l ff t i t d SG&A ti
‐ We expect ratios to improve as strong performance at Gafisa will be complemented by top
line growth in Tenda
2Q09 Gafisa Tenda Total 1Q09 Gafisa Tenda Total
Selling Expenses (R$ 000) 23,679 27,502 51,182 Selling Expenses (R$ 000) 23,066 23,540 46,607
G&A Expenses (R$ 000) 38,978 20,334 59,312 G&A Expenses (R$ 000) 28,853 27,065 55,918
SG&A Expenses (R $000)
SG&A Expenses (R $000) 62,657
62 657 47,836
47 836 110,493
110 493 SG&A Expenses (R $000)
SG&A Expenses (R $000) 51,919
51 919 50,606
50 606 102,525
102 525
Selling Expenses / Sales 5.1% 7.5% 6.1% Selling Expenses / Sales 7.5% 9.3% 8.3%
G&A Expenses / Sales 8.3% 5.5% 7.1% G&A Expenses / Sales 9.4% 10.7% 10.0%
SG&A / Sales 13.4% 13.0% 13.2% SG&A / Sales 17.0% 20.0% 18.3%
Selling Expenses / Revenues 5.3% 10.5% 7.3% Selling Expenses / Revenues 6.9% 11.2% 8.6%
G&A Expenses / Revenues 8.8% 7.8% 8.4% G&A Expenses / Revenues
/ 8.7% 12.9% 10.3%
SG&A / Revenues 14.1% 18.3% 15.7% SG&A / Revenues 15.6% 24.1% 18.9%
15
16. Strong Pre‐Sales Positively Impact Backlog of Revenues to be
Recognized
R$1.1 billion of results to be recognized (68.6% growth compared to 2Q08)
R$ million)
R$ illi ) 2Q09 2Q08 1Q09 2Q09 x 2Q08 2Q09 x 1Q09
Gafisa Revenues to be recognized 1,905 1,700 1,844 12.1% 3.3%
Costs to be recognized (1,199) (1,085) (1,197) 10.6% 0.2%
Results to be recognized (REF)
Results to be recognized (REF) 706
706 616
616 647
647 14.7% 9.0%
REF margin 37.0% 36.2% 35.1% 111 bps 195 bps
Tenda 1) Revenues to be recognized 1,187 157 1,057 656.0% 12.3%
Costs to be recognized
to be (768) (105) (701) 628.5%
628 5% 9.6%
9 6%
Results to be recognized (REF) 419 52 356 712.4% 17.8%
REF margin 35.3% 32.8% 33.7% ‐82 bps 163 bps
Consolidated Revenues to be recognized 3,092 1,857 2,901 66.5% 6.6%
Costs to be recognized (1,968) (1,190) (1,898) 65.4% 3.7%
Results to be recognized (REF) 1,125 667 1,003 68.6% 12.1%
REF margin 36.4% 35.9% 34.6% 135 bps 180 bps
Note: Revenues to be recognized are net from PIS/Cofins (3.65%). Backlog of Revenues not adjusted to present value.
1) Includes Fit Residencial in 2008
16
17. Strong Financial Position: consolidated cash position of R$1.1 billion
80% of Gafisa’s construction has financing lines in place
Cash‐burn rate substantially lower than R$360 million in 4Q08
y $
(R$ million) 2Q09 1Q09
Total Debt 2,242 1,563
Total Cash 1,056 501
Obligation to Investors 300 300
Net Debt & Obligation to Investors 1,486 1,362
(Net Debt & Obligation to Investors) / (Equity + Minorities) 65.6% 61.9%
Cash‐burn rate 111 115
Until Until Until Until After
R$ million Total
June/2010 June/2011 June/2012 June/2013 June/2013
Total Debt – Gafisa and Alphaville 1,486 408 566 319 164 29
Total Debt ‐ Tenda 1) 757 93 42 169 152 300
Total Consolidated Debt 2,243 501 608 488 317 329
17
20. 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 or current
expectations or that of our directors or executive officers
officers.
Forward‐looking statements also include information concerning our possible or assumed future
results of operations, as well as statements preceded by, followed by, or that include the words
''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,''
''believes '' ''may '' ''will '' ''continues '' ''expects '‘ ''anticipates '' ''intends '' ''plans '' ''estimates'' or
similar expressions. Forward‐looking statements are not guarantees of performance. They involve
risks, uncertainties and assumptions because they relate to future events and therefore depend on
circumstances that may or may not occur. Our future results and shareholder values may differ
materially from those expressed in or suggested by these forward‐looking statements. Many of the
forward looking
factors that will determine these results and values are beyond our ability to control or predict.
20
