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2nd Quarter 2012
1
Institutional Presentation
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
(“LPS”) as of June 30th, 2012. 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 LPS 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 LPS 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.
LPS believes that based on information currently available to LPS management, the expectations and
assumptions reflected in the forward-looking statements are reasonable. Lastly, LPS expressly refuses any duty to
update any of the forward-looking statements contained herein.
2
Investment Highlights
3
Achievements
VII Award Relatório Bancário CrediPronto! was awarded in the segment “Best Online File Management”
Highlighted for the efficiency in the mortgage approval
Top Imobiliário Award Considered the main award of the real estate industry in Brazil;
Lopes won every Top Imobiliário, since its first edition in 1993.
Ranking Valor 1000 Listed by Valor Econômico as one of the 1000 largest business groups in Brazil;
Highlighted as the 20th higher net margin among all groups;
8th place in value generation among service companies.
IG/ Insper Award Assertive M&A strategy, expanding the business to other regions of the country;
Lopes was considered the largest company in real estate brokerage and consulting in Brazil, in the last five years.
4
Master Imobiliário Award Award organized by Sindicato da Habitação de São Paulo (Secovi-SP) and Federação Internacional das
Profissões Imobiliárias, suported by Grupo Estado
Lopes was awarded in the segment “Institucional” by 2011 Annual Report of the Brazilian Real Estate Market
Mr. Francisco Lopes
initiates its activities
intermediating
properties
1935 40´s
50´s
60´s
70´s
80´s
90´s
00´s
Launch one of the
first buildings under
the condominium
concept
First TV
advertisement for
a real estate
development
Start of long term
partnership with
Gomes de Almeida
Fernandez (Gafisa)
Launch and sell of 14
office buildings at Av.
Paulista
Launch and sell of 11
office buildings at the Faria
Lima region
Creation of the launching
system with sales stands
and marketing materials,
attracting customers
specially during weekends
Identification of Marginal
Pinheiros as an attractive
area and launch one of
the first buildings in the
region
Start up of sales of hotel
condominium (Flats)
Partner of Grupo Espírito
Santo in selling one of the
largest launching in Lisboa:
Parque dos Príncipes
Introduction of the
concept of condominium
clubs
First “Top Imobiliário”
award, in 1993 – Largest
Brokerage Company
Lopes becomes an important player at
the segment of gated communities
Triples in size in a decade,
strengthening its leadership
Wins its 16th consecutive
“Top Imobiliário”
Lopes’ IPO
Lopes starts its geographic expansion
process
Lopes’ website become leader on real
state market
Joint Venture with Itaú Bank in order to
create CrediPronto, our mortgage
company.
Lopes’ follow-on
The company’s first
logo
Becomes reference in real
estate launchings and
presents its new logo
The Brokerage Market Has No Other Company With Our History
and Track Record
5
6
Asset Light
Services company
Low execution risk
Top
management
team of industry Unique position
in the primary
market Brazilian
Unique
opportunity
to consolidate
the secondary
market
CrediPronto!
Mortgage company
with Highest %
growth of Brazil
since 2009.
LPS Brasil
Investment Highlights
Joint Venture with Banco Itaú to
provide mortgage loans
Low, mid and high-income segments
Mortgage Loan Primary Market Secondary Market
Focus on secondary market, with a
unique model of own stores and a
network of licensed brokers
Growth through acquisitions
LPS Brasil: Unique Business Platform
+
7
Top vehicle to Invest in Brazilian Real Estate Market.
8
Management Team
Top Management Team in Industry
Partners & Associates
Summing up over 300
Years of Real Estate
Experience
Over 33 Partners & Associates with stock Investment and long term alignment with company
Retention / Incentive tool for Top Performing Employees
Partnership Program:
9
Asset Light
Service Based Business Model
Mortgage
Business
Brokerage
Business
Immediate simple revenue recognition
No hard Assets
Yearly Investment = Depreciation
Easy short term adjustment in G&A, in case of a market downturn.
No hard Assets
Inexistence of physical offices (operates inside brokerage stores)
Mortgage portfolio generates recurring cashflow.
Primary
Market
Secondary
Market
Virtuous Cycle of the Business Model Creating Strong Barriers to Entry
Strong Established Base
Leading, nationally recognized brand
Present in 12 Brazilian states and in the Federal
District
Extensive distribution channel
Database with more than 2 million clients
More than 413 homebuilder clients
Leadership and Wide Range of Products Indisputable Sales Performance
The Transactions closed in 2Q12,
of R$ 4.9 million, maintained the
same level as in 2Q11, despite of
the retraction in sales of listed
homebuilders.
CrediPronto! achieved 378
million in origination in the quarter
and R$1,3 billion in 2011.
Most visited website in the real
estate sector: 15 million visitors in
2011.
Retention of Talent
Largest sales force: more than 16,000
independent brokers
Attracts and maintains its sales force
Leader in the primary market
One-stop-shop: unique and
complete solution for the client
: unique platform to
develop the secondary market
: partnership with one
of the largest retail banks in the
world, Itaú Unibanco
10
Institutional Website
Visits on www.lopes.com.br
Source: Google Analytics,
The most visited website in the real
estate market
Strong investment in online media
Increased generation of
Leads
Higher sales conversion
• Over 15 million unique visitors in
2011
•700 launches and more than 50
thousand units in the secondary
market.
• Mobile version compatible with
over 5 thousand kinds of cell phones
• First brokerage company to launch
an App for iPad
• Leader in presence in social
networks
11
LPS Brasil’s Market Mix
São Paulo
Rio de Janeiro
Brasília
South
Other*
*Other: Northeast, Estpírito Santo, Minas Gerais, Goiás.
59% 53% 56%
49% 50% 47% 47% 52% 51% 50%
5%
5%
10% 19% 18% 24%
21%
25% 22% 21%
14% 17%
9% 12% 9%
8% 7%
4% 4% 5%
10% 11% 12%
10% 11%
12% 12%
10% 12% 12%
12% 14% 12% 9% 12% 9%
13% 8% 11% 11%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
12
LPS Brasil in the Primary Market
13
Lopes is exclusively focused on providing value-added real estate brokerage services to its client-
developers, with a permanent concern of avoiding conflicts of interest
Formal relationship through agreements
Over 413 Clients
2,129,180 prospects
included in our data base
Client-Developers Client-Buyers
Ho
w d
o w
e d
o
bu
sin
ess
?
Ho
w d
o w
e m
ak
e m
on
ey
?1
$ 0.50
$ 0.25
$ 2.33
$ 100
$ 10
Total Price
per Unit
Down-
payment
Gross
Commission
$ 0.97
$ 1.17
Agents +
Managers
Re
ve
nu
e R
ec
og
nitio
n
$ 5.22
Developer
1 Launches Lopes 2Q12
$ 2.14
$ 3.08
Net Commission Premium Contract Advisory Fee
Simple and Focused Business Model…
14
15
Market Intelligence
Brazil still represents a case for growth in the primary market.
Mexico Units launched:
700 thousand/year ²
Brazil Units launched:
214 thousand/year ¹
Launches by Market – Brazil - 2011
R$86 billion / 214k Units
Total Brazil
Source: ¹ LPS Market Intelligence
² Infonavit, Softec and others (considering new homes from homebuilders and self construction).
Growth 2007 - 2030
Significant Creation of Demand
Demographic Bonus Population Pyramid (millions of people)
Expansion of Class C (% of the population)
Number of Families by Income Segment (millions)
40%
60%
80%
100%
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Economically active population = 15 – 64 year-old
Dependence Index
(8%) 78% 160% 233% 291% 433%
2003
2008
11%
49%
24%
16%
Classes A and B Class C Class D Class E
8%
37%
27%
28%
Source: IBGE, Bird, Febraban and FGV
31.7
15.5
8.4
3.3 1.1 0.3
29.1 27.6
21.8
11
4.3 1.6
Up to R$1k
R$1k to
R$2k
R$2k to
R$4k
R$4k to
R$8k
R$8k to
R$16k
Above
R$ 16k
2007A
2030E
16
The demographic bonus, combined with economic growth, will lead 12.5 and 6.5 million people to move up into the
middle (C) and upper middle/high (B/A) classes respectively, over the next 2 years. These families will certainly be
seeking better living conditions.
National Footprint
Lopes tracks developers’ regional movements, consolidates its
position as the largest consulting and sales player
PR
RJ
BA
SP
RS
ES
SC
PE
MG
DF
CE
GO
RN
Source: Lopes RI 17
RegionPayment
(R$mm)Region
Payment
(R$mm)
SÃO PAULO
Greenfield CAMPINAS
29.2 9.0
10.2
RIO DE JANEIRO FEDERAL DISTRICT
Greenfield 12.0
ESPÍRITO SANTO BAHIA
5.76 Greenfield
MINAS GERAIS PERNAMBUCO
Greenfield 3.0
5.5
SULCEARÁ E RIO GRANDE
DO NORTE
15.12.4
35.7
HIGH
MEDIUM-HIGH
MEDIUM
ECONOMIC
BUSINESS UNITS
Sales Expertise in all Market Segments
São Paulo/SP
Paulista Tower – Apr/12
120 un. – R$ 20,000/m²
Location
Sales
São Paulo/SP
Certto Curuça Park – May/12
298 un. – R$ 3,406/m²
Location
Sales
Santo André/SP
Figue – May/12
64 un. – R$ 5,800/m²
Location
Sales
100% sold.
Developer: Even
CASE
97% sold.
Developer: Plano & Plano
CASE
98% sold.
Developer: RFM Construtora
CASE
São Paulo/SP
Estilo Jardins – May/12
104 un. – R$ 12,500/m²
Location
Sales
100% sold.
Developer: MAC
CASE
Campinas/SP
Living Design - GR Cambui – May/12
60un. – R$9,000/m²
Location
Sales
85% sold.
Developer: GR Properties
CASE
18
Transactions Closed – Primary Market
(R$ billion)
2.5
4.9
9.4 8.7
14.4 14.4
2006 2007 2008 2009 2010 2011
Transactions Closed – Primary Market
Took advantage of Listed Homebuilders growth through Capital raisings. (equity + debt)
19
(R$ Billion)
Primary Market Breakdown – Transactions Closed 2Q12
20
50% 44% 42% 40%
50% 56% 58% 60%
2010 2011 1Q12 2Q12
1.2 25%
2.2 45%
1.5
30%
Non-listed Homebuilders Listed Homebuilders Secondary market
Limited exposure to large homebuilders
* Value based on the previous Listed Homebuilders - does not include Viver, JHSF and CR2 e CCDI.
Evolution of Launches 2Q12
Evolution of Launches – Listed Homebuilders and Lopes
21
8.706
5.491
2Q11 2Q12
Listed Homebuilders
7.171
5.601
2Q11 2Q12
Lopes
-22%
-37%
49% 53% 56% 54%
51% 47% 44% 46%
2010 2011 1Q12 2Q12
Other Homebuilders Top 10 homebuilders in sales
Breakdown Homebuilders
Breakdown Top 5 Homebuilders Breakdown – Homebuilders
292 236 301 7.6% 9.5% 8.9%
6.2%
7.1%
5.3% 6.2%
6.1%
6.1% 5.2% 5.0%
5.6%
6.1% 5.1% 4.4%
5.3%
4.7% 4.0% 4.1% 5.1%
2010 2011 1Q12 2Q12
1st 2nd 3rd 4th 5th
# Homebuilders
22
272
R$/m2
Real Estate Market Overview – Prices
Source: EMBRAESP
* Launches occurred in residential vertical in SP Capital Jan/96 to Mar/12.
Nominal
INCC Adjusted
Evolution of Average Launches’ Prices in SP
R$/m2
23
1,480 1,480 1,680 1,710 1,860 2,120
2,450 2,770
3,160 3,170 3,380 3,290 3,550
3,930
5,300
6,750 7,180
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
6M
12
5,100 4,780
5,160 4,970 4,940 5,210
5,490 5,340 5,480 5,030 5,070
4,690 4,630 4,790
6,060
7,180 7,320
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
6M
12
118,0
149,8
100,0
134,8
82,0
119,8
jan
/09
Jan
-09
Feb
-09
Mar
-09
Ap
r-0
9
May
-09
Jun
-09
Jul-
09
Au
g-0
9
Sep
-09
Oct
-09
No
v-0
9
De
c-0
9
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
De
c-1
0
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Au
g-1
1
Sep
-11
Oct
-11
No
v-1
1
De
c-1
1
Jan
-12
Feb
-12
Mar
-12
Ap
r-1
2
May
-12
Jun
-12
Jul-
12
Expectation Index Lopes' Confidence Index Present Situation Index
Source: Lopes Market Intelligence
Lopes’ Confidence Index (LCI)
Lopes is the first company to create a Real Estate Consumer Confidence Index.
Lopes’ Confidence Index intend to measure clients confidence, so Lopes can follow and anticipate, in the short term,
housing purchase tendency.
The sample has 581 interviews, with Grande São Paulo resident clients, which contacted Lopes in the last 3 months and
are interested in purchasing a new home.
Lopes’ Confidence Index (LCI)
24
LPS Brasil in the Low Income Segment
25
HABITCASA: Focus on Low Income Segment
Focus on Low Income Segment
Units up to R$ 300 thousand
The Habitcasa brand is applied in all Lopes’ markets
26
2Q11
2Q11
2Q12
2Q12
Number of Transactions Closed
Transactions Closed
17,125 units
Transactions Closed by Price Segment – Primary and Secondary Markets
27
10%
35%
23%
32% 8%
31%
24%
37%
34%
43%
15% 8%
41%
35%
15%
9%
15,072 units
R$ 4,957 million R$ 4,902 million
LPS Brasil in the Secondary Market
28
Present in 12 states and the Federal District
– Covers 91% of the Brazilian GDP
– Over 50 own stores
– 150 licensed brokers
– Strong presence in São Paulo and Rio de Janeiro
Unique one-stop-shop business model
Solid client base
Strong internet presence
Diversified products in the portfolio
Unique Platform Poised for Growth Well Defined Acquisition Model with a Successful Track
Record
Appreciation and alignment of interests
– Earn-out
– 51% ownership stake
Natural Consolidator
Potential synergies:
– Scale and reach: network effect
– Access to mortgage financing
– Expertise of LPS Brasil management
Pronto!: A Natural Consolidator
Acquisition strategy:
– Companies with expertise in their regional markets
– Companies with limited access to capital
– Well positioned in relevant markets
– Widespread network
Successful acquisitions through the years
– 19 acquisitions since July 2010 focused on the secondary market
– Benchmark for future partners
– Accretion
29
Pronto!
Pronto has 200 stores in 12 States + Federal District : 50 owned stores and
150 licensed brokers
30
Acquisitions*
* Average of 40% in downpayment and 60% in earn outs linked performance
CompanyPayment ( R$ mm)
CompanyPayment ( R$ mm)
7.1 8.41
2.6 12.2
11.7 4.9
17.3 24.3
25.6 15.0
15.5 10.0
20.9 6.6
Transactions Closed Historical in the Secondary Market
Transactions Closed – Secondary Market
( R$ billion)
0.3 0.3
0.7 0.6
1.3
3.8
11%
7% 7% 6% 8%
21%
2006 2007 2008 2009 2010 2011
Strong growth of Secondary Market in our transactions closed.
2Q12 secondary sales reached 25% of total sales (R$1.2 billion)
.
Secondary Market Sales over total
Transactions Closed
Secondary Market
Transactions Closed
31
CrediPronto!
32
Source: Goldman Sachs, Abecip, BCB
Mortgage Market
Mortgage Market as a % of GDP
33
88%
81%
48%
42% 38%
19%
11% 11%
6% 5% 2% 2%
UK USA GERMANY SOUTH
AFRICA
FRANCE CHILE MEXICO CHINA INDIA BRAZIL RUSSIA ARGENTINA
Growth Drivers
Housing deficit
– 7.2 million houses (2009)
Incipient mortgage loan market
Declining interest rates
Rising employees’ income
Growing availability of long-term funding
Increasing secondary market financing
Increasing family turnover
Market Potential for Real Estate Financing
Source: Bacen and ABECIP Notes: 1 Data from 2006, except for Brazil (2009) 2 FGV’s Center for Social Studies, 2010 3 Represents the number of times a family moves to a different house during their lifetime. Source: Credit Suisse
Mortgage Loan Access (% by Social Class)2
7.7%
5.0%
3.0%
1.7%
Classes A and B Class C Class D Class E
4.0x
1.8x
9.0 – 10.0x
G-7 Mexico Brazil
Family Turnover3
5.4
6.7
7.9
6.3 5.8
1991 2000 2006 2007 2008
Quantitative Housing Shortage (millions of homes)
34
Strengthening of mortgage origination and other related services.
Leadership position
in their respective
markets
Management
Excellence High Value Brands
Joint Venture Lopes Itaú
Lopes and Itaú created the first and biggest pure mortgage company of Brazil.
Direct and exclusive access to its
customer database
Seamlessly integrated operation with
Lopes’ sales process, including an
incentive compensation plan
Lopes media exposure
Service excellence
Competitive financing terms and
conditions
Speed and quality of processing
Experienced credit analysis
Successful exposure to the lending
business and in joint ventures
35
Differentiated Model: One-Stop-Shop
Winning Model
Secondary Market: a significant potential for origination
Over 50 own stores and 150 licensed real estate brokers in
12 states and the Federal District
Selective acquisitions to replicate the successful formula
used in the primary market
33% of Pronto!’s contracted sales are financed by
Credipronto!
Distinctive channel for clients in the secondary market
Over R$2.7 billion in financing
Incipient market in Brazil with huge expansion potential
50% of CrediPronto! transactions are originated through
Pronto!
Use of LPS Brasil’s platform and significant reduction in
CAPEX requirement
Focus
Relevance
Growth
Potential
Synergies
36
The Average Portfolio Balance in the 2Q12 was R$ 2.1 billion.
Financed Volume
(R$ MM)
*Does not include amortization.
(R$ MM)
Mortgages Portfolio
CrediPronto!
37
328
378
2Q11 2Q12
178
2,775
Opening Portfolio
balance
Ending Portfolio
balance
1,459%
Jan/10 jun/12
15%
217 291
385 474
591 727
854 1,013
1,219
1,461
1,698
1,956
2.153
2.397
2.775
Accumulated Sales Volume *
CrediPronto!
(R$ MM)
CrediPronto! granted mortgage loans worth more than R$2.7 billion in its first years of operation
*Not including amortization / October, November and December are unaudited preliminary draft released on January 30th, 2012 38
Credipronto!: Unique Partnership to Capture Mortgage Loan Market
Potential
Evolution of Origination (base 100 = Jan-10)1
Business Highlights
Profit Sharing with limited credit risk
Leverage on LPS Brasil’s points of sale
Differentiated process of approval and release of funds
Unprecedented credit in the market
Innovative Real Estate Financing Process
1 ABECIP
2 Bacen
* Excluding Caixa
+ Market
Leader
Largest Private Bank
in Brazil
High Growth Potential – Real Estate Financing equals only 5% of Brazilian GDP2
Credit Analysis Assessment ofthe Property
Legal Analysis Issuance of theContract
Release ofResources
24 hoursUntil 3
workingdays
2 working
days
3 working
days
5 working
days
Efficiency in Release of Credit
39
*Private players (excludes Caixa)
Ranking of Real estate Financing1Q12 (R$ mm)
6.037
1.896
1.389 1.311 1.019
305 147 25 7 6
Caixa Itaú Bradesco Santander Banco doBrasil
HSBC Banrisul Citibank Banese Poupex
378
6,2% de Market Share* 20% do Itaú
100
168 177
245 241
376 411 432,2
370
433
125 145 147 144 179
209 198 189 209
1,4% 1,9% 1,7%
2,4% 2,4% 3,0% 2,8% 3,1% 2,8% 3,0%
-6,0%
-4,0%
-2,0%
0,0%
2,0%
4,0%
1T10 2T10 3T10 4T10 1T11 2T11 3T11 4T11 1T12 2T12
Credipronto! Mercado Market Share CDP!
Operational Highlights
40
Transactions Closed
(R$ MM)
Transactions Closed
Number of Transactions Closed
The Transactions Closed in 2Q12 maintained the same level of the same period the year
before, despite of the retraction of 19% in sales of listed homebuilders¹ in the primary market
41
3,872 3,666
1,085 1,236
2Q11 2Q12
4,902 4,957 -1%
14,832 12,498
2.293
2.574
2Q11 2Q12
-12% 15,072
17,125
¹ Value based on the previous Listed Homebuilders - does not include Viver, JHSF, CR2 and CCDI.
Financial Highlights
42
2Q12 Financial Highlights
111.1 109.2
15.6
2Q11 2Q12
126.7
-2%
Net Revenue
Net Income Attributable to Controlling
Shareholders before IFRS
25.3 28.4
14.1
2Q11 2Q12
EBITDA*
44.1 42.3
15.1
2Q11 2Q12
59.2
22.8% 26.0% 39.7%
38.7%
43
Earn out Itaú
+12%
39.4
Earn out Itaú Earn out Itaú -4%
¹Shareholders of LPS Brasil through the LPSB3 share
*We consider the EBITDA, excluding other operating expenses (revenues), that considers IFRS non-cash, as the company performance indicator.
The 2Q11 margin does not consider Itaú Earn Out net of taxes.
2Q12 Results
44
Results 2Q12 Before IFRS
(R$ thousand)
LAUNCHES PRONTO! CREDIPRONTO! CONSOLIDATED
Gross Service Revenue 90,211 28,965 5,974 125,150
Revenue from Real Estate Brokerage 86,586 28,965 5,974 121,525
Revenue to Accrue from Itaú Operations 3,625 - - 3,625
Earn Out - - - -
Net Operating Revenue 78,959 25,352 4,879 109,191
(-)Costs and Expenses (32,380) (14,377) (4,765) (51,523)
(-)Holding (11,152) (3,758) - (14,910)
(-) Stock Option Expenses CPC10 (235) - - (235)
(-) Expenses to Accrue from Itaú (238) - - (238)
(=)EBITDA 34,954 7,217 114 42,285
EBITDA Margin 44.3% 28.5% 2.3% 38.7%
(+/-) Other nonrecurring results - - - -
(-)Depreciation and amortization (3,278) (773) (14) (4,065)
(+/-) Financial Result 4,489 216 24 4,729
(-)Income tax and social contribution (7,737) 354 (93) (7,476)
(=)Net income before IFRS* 28,428 7,013 32 35,473
Net Margin before IFRS 36.0% 27.7% 0.7% 32.5%
(=)Net income after IFRS 40,902 959 32 41,893
Net Operating Margin 51.8% 3.8% 0.7% 38.4%
(-) Non-controlling Shareholders (3,453)
(=) Net Income Attributable to Controlling Shareholders After IFRS 38,440
Net Margin Controlling Shareholders 35.2%
*We consider the net income ajusted by non cash IFRS 3 effects (Business Combination) the best net income indicator
Lopes Net Commission
45
Net Comssion Fee
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
BRAZIL 2.3% 2.4% 2.4% 2.4% 2.3% 2.4%
Primary
SP 2.9% 3.0% 2.9% 3.1% 2.8% 3.1%
Habitcasa 1.9% 1.9% 2.1% 2.1% 2.0% 1.9%
RJ 2.2% 2.0% 2.2% 2.1% 2.1% 2.1%
Other Markets 2.1% 2.1% 2.1% 2.1% 2.1% 2.0%
Secondary
SP 2.2% 2.3% 2.3% 2.4% 2.2% 2.2%
RJ 2.4% 2.5% 2.4% 2.3% 2.3% 2.0%
Other Markets 2.1% 2.4% 2.4% 2.5% 2.3% 2.5%
CrediPronto!
*The managerial P&L measures the results of the JV. Olimpia’s Results and all Revenues and Expenses incurred by Itau are considered.
• The numbers of the managerial P&L were audited for 2011 by Ernst&Young and, due to its managerial nature, it does not follow accounting standards.
P&L* 2011
(R$ thousands)
Total
Amount Financed 1,270,674
Opening portfolio 707,053
Closing portfolio 1,767,940
Average portfolio balance1 976,864
Financial Margin 24,401
% Spread 2.5%
(-) Sales taxes -2,194
(-) Total costs and expenses -37,622
(-) Back Office expenses -6,729
(-) Sales expenses -20,124
(-) Commissions -12,547
(-) Others -187
(+/-) Correspondent bank -
(+) Other revenues (Financ.) 1,365
(-) Allowance for doubtful accounts (ADA) 600
(-) Taxes -6,419
(=) Net result -21,835
% Net Margin -98.3%
50% Profit Sharing -10,918
46
Allowance for Doubtful Accounts
Example of P&L with a financing contract for a $200 unit:
Ex: Sale for
$300
Ex: Sale for
$150
Month 8
$100
-$60
+$200
$240
Month 1
$100
-$60
-
$40
Month 2
$100
-$60
-$5
$35
Month 5
$100
-$60
-$25
$15
+$100: Profit for
the bank
-$50: Loss of the bank
Sale of the recovered property
Recovery of
Property
¹ Including general allowance
Default
Financial Margin
Expenses¹
Specific Allowance
Result
47
Additional Information
48
Lopes’ Contracted Sales Seasonality
* The seasonality can not be verified in 2008, because of the effects of the world financial crisis.
17% 18%
14%
23%
15%
19% 19% 21%
31%
22%
32%
24% 25% 27%
25% 22% 23%
29% 28% 26%
24%
37%
29%
41%
16%
33% 30% 30%
2005 2006 2007 2008* 2009 2010 2011
1Q 2Q 3Q 4Q
49
26%
Average of Historical
Seasonality of the
second quarter:
Ownership Structure
Total of 57,078,658 common shares
Ownership Structure Post-IPO
32%
25% 1%
42% Rosediamond
Chairman and Vice Chairman
Management
Free Float
50
51
Company Roadmap
Achieve dominant position in Secondary Market,
Growing from 24% to 40/50% of our Sales
Long Term Strategic Goals
Mantain Leadership in Primary Market
Grow the Mortgage Portfolio, achieving high
profitability levels ( Break even 2H12)
Develop other Opportunities tied to Services in
Real Estate Market.
