4Q07 Results Presentation

2007 results conference call

Heitor CantergianiCEO

Main Highlights

Overall Outlook

Strategy

Rossi Identity Project

Leonardo DinizCommercial Director

Launches

Sales

Geographical Expansion

Gerson CohenController

Sergio Rossi CuppoloniIRO

Share Performance

Market

Coverage RSID3

Performance 4Q07

Backlog

Indebtedness

Agenda

Heitor Cantergiani

Overall Outlook


Launches of 52 new projects in 2007 PSV Rossi’s share R$ 1.98 billion

Contracted sales grows 114% in 2007 Rossi’s share R$ 1.25 billion

Net revenues reaches R$ 733 million

EBITDA totals R$ 132 million EBITDA Margin 18.0%

Net income of R$ 131 million in 2007 Net Margin 17,9%

Sales Turnover Speed (Adjusted STS) of 58%

Geographical Expansion 52 cities and 14 states

In 2007 our results were in line with the guidance disclosed to the market

R$ million Projected for 2007 Accomplished in 2007

Net Revenue 600-700 733

Launches (PSV) - % Rossi 1,600-1,800 1,981

Contracted Sales % Rossi 1,250-1,400 1,252

Gross Margin (%) 34-36 35.2%

EBITDA Margin (%) 18-20 18.0%

2007 – Highlights


Leonardo Diniz

PSV, Sales, Geographical Expansion


25 projects launched in the 4Q07: Campinas (15), São Paulo (2), Porto Alegre (4), Rio de Janeiro (3) and Nordeste (1).

In 2007, 52 projects were launched.

119 255 275489277

635883

1,981

4Q06 4Q07 2006 2007

Partners Rossi

890

396

1,158

2,470

+125%

+113%

Launches PSV – R$ million

Launches


5.9%

10.0%

30.2%

30.3%

16.7%

6.9%

Until R$ 120,000

R$ 120,100 to R$ 200,000

R$ 200,100 to R$ 350,000

R$ 350,100 to R$ 500,000

Above R$ 500,100

Commercial

In R$ by price segment In units by price segment

14.6%

17.0%

27.6%

20.1%

6.7%

14.0%

Launches - 2007


97 98 147 326206

437584

1,252

4Q06 4Q07 2006 2007

Rossi's Share

+116%

535

303

731

1,578

+77%

17.1%

21.7%

33.4%

8.0%

8.1%

11.6%

In R$ by price segment In units by price segment

7.1%

14.9%

38.2%13.2%

20.1%

6.4% Until R$ 120,000

R$ 120,100 to R$ 200,000

R$ 200,100 to R$ 350,000

R$ 350,100 to R$ 500,000

Above R$ 500,100

Commercial

Contracted Sales - 2007


Land bank with 129 sites for future launches

62769053 9557 10116

2481

30894000

4599

0

4000

8000

12000

16000

1Q07 2Q07 3Q07 4Q07

Partners

Rossi

Land bank PSV in R$ Million

4Q07

Total

Total Rossi

14,715 10,116

Breakdown

PSV Launched 4Q07

Final 3Q07

Origination 4Q07

Final 4Q07

13,557

(890)

2,048

14,715

9,557

(635)

1,194

10,116

12,527 million m2 in buildable area Future Launches (in units) – 81,614 4 to 5 years in the bag for future launches

Potential PSV (100%): R$ 14.7 billion

Rossi’s Share: R$ 10.1 billion

Acquisition Method

Financial

Swaps

21%

Swap by

unit

45%

Cash

34%

Land Bank


Focus on low to middle income segments

Land bank 4Q07 – PSV by Regional Office and by Segments

Land bank(in R$)

120,000 120,000 to R$

200,000

200,000 a R$

350,000

350,000 a R$ 500,000

500,000 Commercial Lots Total %

SP 258 188 613 874 801 25 122 2,881 20%

CPS 319 142 1,012 261 - 14 640 2,389 16%

POA 226 1,406 1,136 43 56 94 - 2,960 20%

RJ 265 312 1,630 194 338 - - 2,739 19%

BH 702 688 31 - - 242 - 1,663 11%

NE 495 737 468 - 91 123 - 1,914 13%

OP 105 29 35 - - - - 169 1%

Total 2,370 3,502 4,924 1,372 1,286 498 762 14,715 100%

Distribution 16% 24% 34% 9% 9% 3% 5% 100%

Land bank


11%

13%

16%

20%

20%

19%

1%

BH

NE

CPS

POA

SP

RJ

OP

Rossi should continue focusing on low to middle income segments...low income DNA

Regional Breakdown Price and Product Breakdown

16%

24%34%

9%

9%

3% 5%

<120,000

120-200,000

200-350,000

350-500,000

>500,000

Commercial

Lots

Land bank- Breakdown


Long Term Sustainable Competitive Advantage:Building up Local Know-How

Regional Offices

(1) 1980 – São Paulo

(2) 1996 – Campinas

(3) 1999 – Porto Alegre

(4) 2001 – Rio de Janeiro

(5) 2006 – Belo Horizonte

(6) 2007 – Salvador

(7) 2007 – Paulista West Region 7

2

3

4

5

6

1

Geographical Presence


Gerson Cohen

Operating Performance


125

231

4Q06 4Q07

Net Revenue

45

84

4Q06 4Q07

Gross Income

+88%

29

25

4Q06 4Q07

Net Income

23

36

4Q06 4Q07

EBITDA

18.2%

15.5%

4Q07 Financial Highlights (in R$ million)

+85%

+57%-14%

35.5%

36.1%


411

733

2006 2007

Net Revenue

128

258

2006 2007

Gross Income

44

131

2006 2007

Net Income

51

132

2006 2007

EBITDA

12.4%

18.0%

2007 Financial Highlights (in R$ million)

+78% +101%

+159% +200%

31.2%

35.2%


21%

66%

13%Construction

Financing - ST

Debentures

Construction

Financing - LT

Total Debt: R$ 480.7 million

12.4%

87.0%

0.6%

Cash and

banks

Short Term

Investments

Long Term

Investments

Cash Position: R$ 255.9 million

Net Debt: R$ 224.8 million

Unearned Results

307.2

372.5

3Q07 4Q07

Unearned Results Backlog Gross Margin

35.5%36.0%

Indebtedness (in R$ million)


Sérgio Rossi Cuppoloni

Share Performance


10,00

15,00

20,00

25,00

30,00

35,00

40,00

45,00

50,00

55,00

60,00

2007 Performance – RSID3


RSID3: +64.8%

IBOV: +40.8%

Analyst Coverage – RSID3Rossi is currently covered by 12 institutions, with 2 more initiating in the near future


Current Analyst Coverage

Institution Analyst Contacts On the way

UBS Pactual Guilherme Vilazante Gordon Lee

[email protected] [email protected]

Itaú

Credit Suisse Marcelo Telles Vanessa Quiroga


Goldman Sachs

Bradesco Carlos Firetti Marcos Suzaki


JP Morgan Adrian Huerta Somesh Agarwal


Bulltick Rafael Pinho [email protected]

Santander Marcello MilmanGonzalo Fernández


BB Investimentos Antonio Emilio Ruiz [email protected]

Unibanco Carlos Macedo [email protected]

Merrill Lynch Alexandre Miguel Carlos PeryrelongueEsteban Polidura

[email protected] [email protected] [email protected]

Deutsch Bank Dan McGoey Michelle Dorea


Citigroup Cecília del Castilio Rodrigo Villanueva Bravo


Banco Fator Renato Pinto [email protected]

Sergio Rossi CuppoloniInvestor Relations [email protected]. (55 11) 3759-7232

Maria Claudia BiolchiniInvestor Relations [email protected]. (55 11) 3759-7516

IR Team


Disclaimer


This material is a presentation of general background information about Rossi Residencial S.A. (“Rossi”) as of the date of this

presentation. Information contained herein has been summarized and does not purport to be complete. This presentation shall not be

considered an advice of investment by potential investors. This presentation is strictly confidential and may not be disclosed to any third

person. There are no representations or warranties, express or implied, regarding the accuracy, fairness, or completeness of the

information presented herein, which shall not support any decision of investment.

This presentation contains statements and information that are forward-looking pursuant section 27A of the Securities Act of 1933, as

amended, and Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements and information are only

predictions and cannot assure Rossi´s future performance. Investors have been cautioned that any such forward-looking statements and

information are subject to many risks and uncertainties relating to the operations and business of Rossi and its subsidiaries. As a result of

such risks and uncertainties, the actual results of Rossi and its subsidiaries may be materially different from any future result expressed

or implied in the forward-looking statement or information contained herein.

Although Rossi believes that the expectations and assumptions reflected in the forward-looking statements and information are

reasonable and have been based on data currently available to its officers and directores, Rossi cannot guarantee future results or

events. Rossi does not assume the commitment of update any of the forward-looking statement of information.

Securities may not be offered or sold in the United States unlesss they are registered or exempt from registration under the Securities Act

of 1933, as amended. Any offering of securities to be made in the United States will be made by means of an offering memorandum that

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Rossi and its subsidiaries, their business and financial results, as well as its financial statements.

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whatsoever.

4Q07 Results Presentation

Investor Relations

Transcript of 4Q07 Results Presentation