2. Disclaimer This presentation does not constitute an offer, or invitation, or solicitation of an offer to subscribe for or purchase any securities neither does this presentation nor anything contained herein form the basis to any contract or commitment whatsoever. The material that follows contains general business information about LPS Brasil – Consultoria de Imóveis S.A (“Lopes”) as of the 31 st of December 2008. It is not intended to be relied upon as advice to potential investors. The information does not purport to be complete and is in summary form. No reliance should be placed on the accuracy, fairness, or completeness of the information presented herein and no representation or warranty, express or implied, is made concerning the accuracy, fairness, or completeness of the information presented herein. This presentation contains statements that are forward-looking and are only predictions, not guarantees of future performance. Investors are warned that these forward-looking statements are and will be subject to many risks, uncertainties, and factors related to the operations and business environments of Lopes and its subsidiaries such as competitive pressures, the performance of the Brazilian economy and the industry, changes on market conditions, among other factors disclosed in Lopes filed disclosure documents. Such risks may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. Lopes believes that based on information currently available to Lopes management, the expectations and assumptions reflected in the forward-looking statements are reasonable. Lastly, Lopes expressly refuses any duty to update any of the forward-looking statements contained herein.
4. Simple and Focused Value Added Business Model Main Distribution Channel in the Industry with a National Footprint Low Risk Business with a Diversified Client Base : Cash Generator Company Already scaled down to face new market conditions in 2009 Unmatched Scale and Reach Experienced Management Team and Outstanding Track Record Investment Highlights
8. Lopes Net Commission SP GVS / Consolidated GVS 100% 95% 80% 50% Net Commission São Paulo Net Commission Brazil
9. Lopes’ business is clearly fundamental to the profitability and returns of its clients… With a Key Role in the Real Estate Value-Chain Almost 6.000 brokers Real Estate Development Brazilian Market Dynamics … and its scale and reach – nearly impossible to replicate – enhance this importance Working Capital Is Fundamental Pre Sales Speed of Sales Concentrated in the Launch Period Reliance on Sales Force Scale and Efficiency Speed of Sales is the Key for Profitability
10. Lopes is focused on providing its clients with a full range of consulting services, from land procurement advisory to product formatting, development and sale Value-Added Services Across the Development Cycle Determines the Site’s Vocation Masters Market Research Formats Product Meeting Buyers’ “ Wants and Needs” Develops Marketing Campaign Optimizes Media Negotiations Coordinates Product Launching Events Individual Sales Strategy Created to Each Product Coordinates Product Launching Events
14. 193% 37% R$ 2.9 BN R$ 4.0 BN Lopes Positioning in the Low Income Segment With the expansion of the low income segment in São Paulo’s market, the Habitcasa’s initiative was essential to protect the Lopes’ market share of launchings. Data of the Metropolitan Region of São Paulo – Source: EMBRAESP and Lopes managerial data.
16. Lopes is Growing Nationwide SOUTHEAST REGION São Paulo – Beginning of operations in 1935. Acquisition of 60% of Capucci &Bauer, in October 2007, for R$9 million (7.1x P/E 2008) and an earn-out payment. Rio de Janeiro – Entry by greenfield operation, with beginning of operations in July 2006, with LCI-RJ. Espírito Santo – Acquisition of 60% of Actual, in July 2007, for R$5.76 million (7.0x P/E 2008) and an earn-out payment. Minas Gerais – Entry by greenfield operation with beginning of operations in February 2008. SOUTHERN REGION States of Rio Grande do Sul, Santa Catarina and Paraná – Acquisition of 75% of Dirani, in May 2007, for R$15.1 million (7.5x P/E 2008) and two ear-out payments. In July 2008, Lopes acquired the 25% left by the call/put mechanism. MIDDLE WEST REGION Federal District – Acquisition of 51% of Royal, in November 2007, for R$12 million (9.0x P/E 2008) and an earn-out payment. Goiás - Greenfield operation with beginning of operations in August 2008. NORTHEAST REGION Bahia - Greenfield operation with beginning of operations in October 2007. Pernambuco – Acquisition of 60% of Sérgio Miranda, in August 2007, for R$ 3 million (10.0x P/E 2008) and an earn-out payment. Ceará – Acquisition of 60% of Immobilis, in January 2008, for R$2.4 million (10.0x P/E 2008) and an earn-out payment. Lopes tracks developers’ regional movements, consolidates its position as the largest consulting and sales player CE GO PR RJ BA SP RS ES SC PE MG DF
18. The Secondary Market Source: ITBI, Gafisa prospectus, Cushman Wakefield report, team analysis 118 Primary Secondary 100% (Total in R$ billion, % of total potential sales value) Real estate market by segment In the city of São Paulo, the difference is as high as 30% ~ 50% Difference (in %) between the average price per m² in new development vs. used properties
19. = At the same time that a property sale generates a “derived” demand for financing, it broadens the base of buyers, creating a virtuous circle that supports liquidity in the secondary real estate market. Pronto! and Credipronto! (JV with Itaú) will mutually strengthen this virtuous circle, offering a unique service in the real estate market Synergies Between Credipronto! and Pronto! – Competitive Advantage With Lopes’ leadership and financing from Itaú (Brazil’s largest bank), Pronto! and Credipronto!, acting together, will create a competitive advantage that is hard to replicate
22. Innovative Real State Financing Process The deadlines mentioned are linked to the complete delivery of the documentation and they can change in case of any restrictions. CrediPronto!
24. Social Economic Scenario and Housing Shortage 5,4 6,7 1991 2006 2000 7,9 Source: Fundação João Pinheiro e Ministério das Cidades Source: Credit Suisse 47 million homes 19% A/B > 10 minimum wages- US$ 1.900 52% 5 – 10 minimum wages- US$ 950 - US$ 1.900 30% C 28% < 5 minimum wages - US$ 950 51% D/E 20% Source: Losango * Qualitative Housing Shortage is the number of times that a family moves to different houses in life Age Pyramid in Brazil Segments by Income in Brazil Quantitative Housing Shortage (millions of homes) Qualitative Housing Shortage Source: IBGE
25. AAA AAA AA A+ A+ A A- BBB+ BBB- BBB- BBB+ Mortgage Market as a % of GDP Mortgage Market and the Investment Grade Source: Lopes, FMI, S&P and Santander X Rating S&P
26. Number of Launches - RMSP GVS¹ Launched (R$ bn) - RMSP Units Launched (‘000) - RMSP ¹ Launched values adjusted by the INCC until December/08. 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 +14% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 +37% 1996 1997 2006 2007 2008 Nominal GVS launched in 2008 was the same amount as 2007: R$ 20 bn. 20,6 Launches RMSP – Historic data (1996 - 2008) Source: Lopes’ Market Intelligence *2009E – 1996 + GDP growth or similar amount of 2006 (GDP growth – CAGR with data from IBGE, GDP of 2008 was annualized). 2009E*
27. R$/m 2 SPMR Real Estate Market Overview – Prices Source: EMBRAESP Nominal INCC Adjusted Evolution of Average Launches’ Prices in the SPMR R$/m 2
28. Real Estate Funding 87% 50% FGTS and Savings Accounts 1H07 x 1H08 FGTS and Savings Accounts Funding Source: CEF and Abecip
29. Macroeconomic Scenario Source: IPEA Source: Central Bank and ABN Real Source: IBGE Source: BEA e Bloomberg 5.9 1.4 GDP Brazil GDP US Brazil: Savings Accounts and Investments (% GDP) Savings Accounts and SHF Brazil GDP Growth(%) US GDP Growth (%) 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 6.0 4.0 2.0 - 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% Savings Accounts Related Resources Real Estate Financing 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 -
31. Lopes’ Confidence Index (LCI) Janeiro/09 Lopes’ Confidence Index Present Situation Index Expectation Index +44% 116,9 (base: dec/2008=100) Source: Lopes Market Intelligence Lopes’ Confidence Index (LCI) - Janeiro/09 Lopes’ Confidence Index intend to measure clients confidence, so Lopes can follow and anticipate, in the short term, housing purchase tendency. The sample has 586 interviews, with Grande São Paulo resident clients, which contacted Lopes in the last 3 months and are interested in purchasing a new home. 120,0 Lopes is the first company to create a Real Estate Consumer Confidence Index.
32. The scenario is positive when compared the present purchase intention with the purchase intention for the next 6 months, specially in the Low Income and Medium-High Segment. Among the questions made in the research, the family economic situation was the most stable one. For 34% of the interviewed the family economic situation is good, while 61% considered it regular. or the nest 6 months, 28% believe that it will be better, while 69% believe it will be as it is. 116,9 Lopes’ Confidence Index (LCI) – January/09 Lopes’ Confidence Index Present Situation Index Expectation Index Low Income Medium-High 35% High 44% 53% 124.3 (base: dec/2008=100) Source: Lopes Market Intelligence
36. Units Sold per Region and per Income Segment Sales per Segment (in units) Sales per Region (in units)
37. Lopes stands out as the brokerage company with the best performance per sales agent. The highest contracted GVS per sales agent ratio is an appeal and a retention factor for the best brokers of the market. (R$ MM) Source: Lopes Market Intelligence Contracted Sales per Agent - SP
39. Cash Position Before and After Patrimóvel’s Renegotiation *Future Payments: R$ 145 millions - Patrimóvel R$30 millions – Acquisitions Payments R$35 millions – Estimated Acquisitions’ Earn-out Payments * Future Payments: R$30 millions – Acquisitions Payments R$35 millions – Estimated Acquisitions’ Earn-out Payments
40. Non Recorrent Effects Patrimóvel Patrimóvel’s Goodwill (R$ 75.4 MM) Total Patrimóvel’s Payable Accounts R$ 14.6 MM Impact on Results (R$ 60.8 MM) New Accounting Practices CPC 04 – Pre-Operational Costs R$10 MM CPC 10 – Stock Option R$6.3 MM Estimated Cost Reduction Reduction One-Time Costs 3Q08 R$ 41 MM/year R$ 3.1 MM 4Q08 R$ 26 MM/year R$ 2.3 MM Total R$ 67 MM/year R$ 5.4 MM
41. Adjusted EBITDA Pro Forma* *Adjusted EBITDA is a non-accounting measure created by Lopes, consisting of net income before the participation of minority interests, income tax and social contribution tax, net financial result (financial revenues and expenses), depreciation, amortization and non-operating income. The calculation of the Adjusted EBITDA does not correspond to any generally accepted accounting practice in Brazil, nor does it represent cash flow for the periods presented, and should not be considered a substitute for net income or a substitute for cash flow as an indicator of liquidity. Adjusted EBITDA Pro Forma does not considers the effects of Patrimóvel’s goodwill lost, changes on accounting practices and the cost reduction. Adjusted EBITDA Pro Forma -115% 50% -12% EBITDA Margin 3% 51% 32% 4Q07 4Q08 2007 2008 (R$ MM) Adjusted EBITDA Pro Forma 2008 (R$ MM)
42. Lopes 2008 EBITDA’s Analyze 42% 45% 31% -12% 32% *This value is not an indicative of Pronto!’s operational costs, it should not be used as base to on going expenses, because of the accounting practices changes. 3Q08 ∆ 4Q08 Sales R$2.9 Billions -45% R$1.6 Billion Net Commission 2.5% 4% 2.6% Net Revenue R$65.3 Millions -46% R$35.5 Millions Operational Expenses R$44.9 Millions -14% R$38.7 Millions Pronto!’s Operational Costs* - - R$2.8 Millions
43. Adjusted Net Income Pro Forma* Adjusted Net Income Pro Forma (R$ MM) -166% 35% -37% Adjusted Net Margin -39% 37% 14% 4Q07 4Q08 2007 2008 Adjusted Net Income Pro Forma 2008 (R$ MM) * The adjusted net income is the accounted net income, excluding the amortization of the goodwill. Adjusted Net Income Pro Forma does not considers the effects of Patrimóvel’s goodwill lost, changes on accounting practices and the cost reduction.
46. Sales’ Guidance for 2009 – Primary Market 9% (R$ MM) * The General Value of contracted sales (Contracted GVS) projected in this release may change due to many variables. This material fact includes forward looking statements related to business perspectives, results estimates and, also, the growth outlook for Lopes. Such forward looking statements may be substantially affected by changes in market conditions, government decisions, stronger competition, industry performance as well as Brazilian economy performance, in addition to those risks presented in the documents released and filed by Lopes, consequently, they are subject to changes without previous notice.