2Q08 Earnings Release Brasil Brokers announces 2Q08 Results · with the inauguration of four new branches (Icaraí, Fonseca, Piratininga and São Gonçalo), as well as the inauguration

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2Q08 Earnings Release

2Q08 Conference Call

Portuguese

August 15, 2008

11:00 am (Brasília)

10:00 am (U.S. ET)

Phone: +55 (11) 2188-0188

Code: Brasil Brokers

Replay: +55 (11) 2188-0188

English

August 15, 2008

2:00 pm (Brasília)

1:00 pm (U.S. ET)

Phone: +1 (973) 935-8893

Code: 57228128

Replay: +1 (706) 645-9291

IR Contact

Álvaro Soares

CFO and IRO

Phone: +55 (21) 3433-9550 e-mail: [email protected]

www.brbrokers.com.br

Brasil Brokers announces 2Q08 Results

Rio de Janeiro, August 14, 2008. Brasil Brokers Participações S.A. (Bovespa: BBRK3), a

real estate brokerage and consulting firm with a strong presence in Brazil’s major real estate

markets, announces today its results for the second quarter of 2008.

The Company’s consolidated financial statements are prepared in accordance with generally

accepted accounting principles in Brazil (BR GAAP), pursuant to the Brazilian Corporate Law and

the regulations of the Securities and Exchange Commission of Brazil (CVM).

2Q08 Highlights

Continued organic expansion with the opening of 13 new

branch offices and the startup of operations in the cities of

Niterói and São Gonçalo in Rio de Janeiro state; Florianópolis, in

Santa Catarina; and Novo Hamburgo in Rio Grande do Sul;

Advances in the inorganic growth strategy through the

acquisition of Global Consultoria Imobiliária S.A. in Manaus,

Amazonas, expanding our coverage in Brazil’s North region;

Total contracted sales in 2Q08 of R$2,713 million or

14,452 units, of which 8,397 units (58% of total) were priced

below R$150,000;

Launch Backlog of approximately R$30 billion on June

30, 2008, to be launched by yearend 2009.

mailto:[email protected]

http://www.brbrokers.com.br/

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History and Operations

Brasil Brokers was constituted on January 16, 2007 and initiated its operations on June 11, 2007.

During this period, the Company has acquired controlling interests in 16 companies in the real

estate brokerage sector (except for Niterói Administradora, in which it holds a 50% interest). Of

these 16 companies, seven have operating histories and nine are newly formed companies that

received 100% of the operations and nearly 100% of the assets, including goodwill and brand

equity, of companies formed at least three years ago that enjoy strong brand recognition in their

respective markets.

As of June 30, 2008, all 24 subsidiaries were operational, with the respective results already

included in our financial statements: Primaz, Gribel, Niterói Administradora, IPrice, Brito e

Amoedo, Ética, Delforte, Pactual, Avance, Noblesse, Basimóvel, Américas, Abreu, Sardenberg,

Tropical, Chão&Teto, Jairo Rocha, JGM, Frema, Rede Morar, Redentora, Marcos Koenigkan, Global

and Pointer.

The revenue and expenses of our subsidiaries are related to real estate brokerage and consulting

services.

Operating Areas

On June 30, 2008, the Company operated in the following areas, as shown on the map below:

States where Brasil Brokers hassubsidiaries

Other States where Brasil Brolersoperates through its subsidiaryPrimaz

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Organic Expansion in 2Q08

Our subsidiaries opened another 13 branch offices in 2Q08, for a total of 16 new branch offices in

the first six months of 2008.

Operational startup of Noblesse in the city of Florianópolis, representing the

first Brasil Brokers branch office in the state of Santa Catarina. Operational

startup in another city in Rio Grande do Sul state: Novo Hamburgo. Two other

branches were also inaugurated in the state’s capital, Porto Alegre.

Ética, the leading property reseller in Brazil, expanded its operations to the

cities of Niterói and São Gonçalo in the Rio de Janeiro metropolitan area,

with the inauguration of four new branches (Icaraí, Fonseca, Piratininga and

São Gonçalo), as well as the inauguration of another 3 branch offices in the

city of Rio de Janeiro.

Inauguration of two branch offices in the city of Belo

Horizonte, the first by Pactual and the second by

Gribel, expanding the activities of both companies in

this capital city of Minas Gerais state, marking the

start of the expansion of Pactual’s operations and the

launch of Gribel’s property reselling operations.

Subsequent Events

Global expands to the state of Rondônia, with operations launched in the city of

Porto Velho.

4


Signing of an investment agreement for the acquisition of a controlling

interest (51%) in Abyara Brokers, with a purchase option for the

remaining 49% to be exercised within the next three years.

Abyara is one of the most traditional and the second-largest real estate

brokerages in São Paulo, according to the Brazilian Real Estate Studies Organization (EMBRAESP).

Abyara launched its operations about 13 years ago and its clients include the largest developers

in the country. Today, it has 1,115 real estate agents distributed over 57 points of sale. The

acquisition of Abyara Brokers significantly increases and consolidates Brasil Brokers’ market share

in São Paulo.

Acquisition of a 70% interest in Triumphe including an option to acquire the

remaining 30% to be exercised within 3 years.

Triumphe is a traditional real estate company operating in the city of

Salvador, Bahia over the past 12 years. The acquisition consolidates Brasil

Brokers’ leadership in the real estate market in Bahia state, where it

already operated through Brito & Amoedo.

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Operating Performance

Operational Highlights (1) 1Q08 2Q08 1H08

GVS Launched (em R$ thousans) (2) 3.199.236 5.253.983 8.453.219

Number of Units Launched 11.758 21.018 32.776

Contracted Sales (R$ thousand) 2.404.096 2.712.825 5.116.921

Number of Units Sold 11.360 14.452 25.812

Number of Brokers 5.709 7.076 7.076

(1) As described in the table on page 11, the number of subsidiaries in operation varied during the quarter.

(2) Total GVS from developments launched by Brasil Brokers on an exclusive or partnership basis.

11,360

14,452

1T08 2T08

Sold Units

1Q08 2Q08

2,404

2,713

1T08 2T08

Contracted Sales (R$ million)

1Q08 2Q08

3,199

5,254

1T08 2T08

Launched GVS (R$ million)

1Q08 2Q08

11,758

21,018

1T08 2T08

Launched Units

1Q08 2Q08

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(1) Contracted Sales of residential and commercial units do not includes the contracted GVS from Primaz and landbank(2) Others includes contracted GVS from Primaz and landbank

Sales by Market Segment

In 2Q08, Contracted Sales solely from residential and commercial units totaled R$2,606 million

(1). Of this total, R$521 million was from the resale of units and R$2,085 million from units

launched. The quarter was marked by a significant increase in the share of property resale in

relation to 1Q08, from 16.6% to 19.2%, reflecting the implementation in early 2008 of the

strategy of accelerated growth in this segment, with the opening of new branch offices.

In the first six months of the year, contracted sales totaled R$5,117 million, with R$921 million of

this total related to property resale.

74.2%76.9%

16.6%

19.2% 9.2%

3.9%

1Q08 2Q08

Primary Market Secondary Market Others (2)

R$2,404 MM R$2,713 MM

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SP

43%

RJ

14%

BA

8%

MG

6%

RS

4%

GO

5%

PA

5%

PE

3%

DF

4%

AM

3% RN

3% ES

2%

Primary Market

Sales by State

Primary Market

In 2Q08, contracted sales from residential and

commercial units totaled R$2,086 million(1). Of this

total, 65.0% was from the Southeast, 14.1% from

the Northeast, 8.8% from the Midwest, 8.4% from

the North and 3.8% from the South.

In 2Q08, the share of contracted sales from

launches in São Paulo state rose significantly in

relation to 1Q08, from 30% to 43%.

Secondary Market

In 2Q08, property resale totaled R$521 million(1). Of

this total, 72.7% was in the Southeast, 11.3% in the

Northeast, 5.9% in the South, 5.7% in the Midwest

and 4.4% in the North.

Similar to the primary market, the share of property

resale in São Paulo state rose significantly, from

4.4% in 1Q08 to 10% in 2Q08.

(1) GVS excludes the contracted GVS of Primaz and the GVS of land.

RJ

55%

RS

12%

SP

10%

MG

5%

GO

6%

PE

5%

PA

4%ES

1%Others

2%

Secondary Market

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Sales by Income Segment

Primary Market

Of the total of R$2,086 million(1) in Contracted

Sales, 11.4% was from properties in the

economic segment (priced up to

R$100,000.00), 20.6% in the mid-low segment

(from R$100,000.01 to R$150,000.00), 40.9%

in the middle segment (from R$150,000.01 to

R$350,000.00), 16.6% in the mid-high

segment (from 350,000.01 to R$650,000.00)

and 10.6% in the high segment (from

R$650,000.00).

In 2Q08, the share of contracted GVS related

to properties priced up to R$150,000.00

reached 32%, compared with 29% in 1Q08.

The share of the contracted GVS from

properties priced up to R$350,000.00 stood at

73% in 2Q08, compared with 62% in 1Q08.

Secondary Market

Of the total of R$521 million(1) in contracted

sales for property resale, 27% was from

properties priced up to R$150,000.00 and

62% from properties up to R$350,000.00.

(1) GVS excludes the contracted GVS of Primaz and the GVS of land.

Economic

(up to R$100 k)

13%

Mid-Low

(R$100-R$150 k)

14%

Middle

(R$150-R$350 k)

35%

Mid-High

(R$350-R$650 k)

18%

High

(above R$650 k)

20%

Secondary Market

Economic

(up to R$100 k)

11%

Mid-Low(R$100-R$150

k)

21%

Middle(R$150-R$350

k)

41%

Mid-High(R$350-R$650

k)

17%

High (above

R$650 k)

10%

Primary Market

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Other Operating Information

The table below presents other operating information of the subsidiaries at June 30, 2008 by

region:

(in R$ billion)

until 2009

Southeast 17.4 4,800 400 633

Northeast 5.6 748 98 118

Center West 4.6 603 60 158

South 0.7 440 65 91

North 2.2 485 31 123

TOTAL 30.5 7,076 654 1,123

Metropolitan RegionSales Backlog Number of

BrokersSales Point Employee

Launch Backlog – by income segment up to December 2009

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Synergy Program With a view to integrating the operations of subsidiaries, we created the Synergy Program,

which has the primary objectives of increasing revenue and the efficiency of sales, reducing

operating costs and standardizing processes and systems.

The program is organized on various fronts, the status of which is shown below:

INICIATIVES DONE NEXT STEPS

Finances and Accounting- Implementation of accounting standards on

national level-Centralized Accounting Data Processing - start in dec/08

Operational Processes and

Management Systems

- SAP implementation in the 16 pre-IPO

subsidiaries - jun/08;

- SAP Training of 120 employees on national

level - jun/08;

- Elaboration of a sales standard operational

model for resales and launches - apr/08.

- Implementation of SAP in the subsidiaries, acquired

after the IPO - sep/08;

- Elaboration of the launch management module - start

in oct/08;

- Implementation of resale model for properties outside

the proprietary sales system – Oct/08

-Implementation of a standardized sales process -

dec/08.

Human Resources

- Training of 126 managers through "Brasil

Brokers' Sales Force Management Training

Program" - jun/08;

- More than 58.000 hours (2Q08) and 97.000

hours (1H08) of training for sales force in all

subsidiaries - jun/08;

- Implementation of new management model,

including establishment of targets and

performance-based compensation- start in

jun/08;

-Consolidation of the national employees and

brokers data bank - jun/08;

- Creation of the Human Resourses Committee

- Conclusion of the bonus and stock options plan -

sep/08;

-Implementation of a internal communication model and

endomarketing on national level - oct/08;

-Definition of Human Resourses politics and code of ethics

- nov/08;

- Conclusion of Brasil Brokers' new Professional

Development Program - nov/08;

- Continuation of "Brasil Brokers' Sales Force Management

Training Program", for more than 165 managers -

dec/08;

-1st Sales force Incentive campaign on national level -

dec/08;

- More than 110.000 hours of sales force training in

Brazil - dec/08;

Marketing

- Comunication campaigns and Events to

present Brasil Brokers to clients and staff in

every operating city.

- Implementation of standards for media comunication

and website for all subsidiaries - dec/08.

Resales Segment

- Identification and documentation of best

practices on sales force and organizational

structure - jun/08

- Implementation of operating standards - oct/08

- Implementation of operating best practice and

organization of sales force on national level - nov/08

- Maintenance of the expansion of the real estate

financing promotion to other subsidiaries

New Launches Segment

- New business model for sales of ongoing

developments (remaining) - mar/08;

- Identification of best practices and sales force

organizational structure - apr/08.

- Implementation of a new business model for sales of

units under construction - sep/08

- Implementation of operational standards for launches -

oct/08.

New Services/Products

- Identification of best practices, specially on

real estate financing promotion - may/08;

- Implementation of real estate financing

promotion structure in 4 subsidiaries - jun/08;

- Establishmetn of a Real Estate financing

Committee

- Expansion of the real estate financing

promotion to other subsidiaries.

- Dissemination of best practices to promote real estate

financing - oct/08

- Maintenance of the expansion of real estate financing

promotion to other subisidiaries - oct/08.

Business Opportunities - Definition of crossed compensation system in

the subsidiaries

- Systematization of business origination processes and

results control - nov/08.

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Financial Performance

This section presents the combined results of the companies in 2Q08.

Explanation of subsidiaries’ operating periods

As mentioned before, when they are acquired, the subsidiaries of Brasil Brokers may present

delays in the start of the accounting of their results in the Company’s consolidated financial

statements. The table below shows the startup of new subsidiaries over the past two quarters.

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Revenue from Services

Gross revenue from the services provided by the subsidiaries of Brasil Brokers, which consists of

brokerage commissions, amounted to R$71.1 million in 2Q08, generating an average commission

of 2.6% with contracted GVS of R$2.7 billion, increasing from the commission in 1Q08 of 2.4%.

After deduction of taxes, net revenue totaled R$64.8 million in the quarter, 24% higher than the

R$52.3 million in 1Q08.

Net revenue growth exceeded the growth in contracted sales due to the increase in average

commission. This rise was driven by higher sales volume in São Paulo this quarter, which earns

higher commissions due to the charging of SATI (Technical Real Estate Consultant).

SP

35%

RJ

21%

Outros

44%

2Q08 Net Revenue per Region

52.3

64.8

1T08 2T08

Net Revenue (R$ MM)

1Q08 2Q08

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Cost of Services & Operating Expenses

The cost of services and operating expenses of the subsidiaries stood at R$30.0 million. Combined

with the parent company’s expenses of R$3.1 million, our total expenses came to R$33.1 million.

The box below shows expenses in 2Q08 versus 1Q08.

Total Cost and Expenses

(in million) 1Q08 2Q08

Total Cost and Expenses - Subsidiaries (23.9) (30.0)

Cost of Services (5.9) (7.4)

General and Administrative Expenses (18.0) (22.6)

Hoding Adjusted Expenses (2.9) (3.1)

Adjusted Total Cost and Expenses (26.8) (33.1)

At the close of 2Q08, we increased the number of consolidated subsidiaries from 20 to 24, as

shown in the table on page 11. Our total costs and expenses with subsidiaries came to R$30.0

million in 2Q08, representing improvement of 25.8% over 1Q08.

Parent company expenses moved up by 5.5% against 1Q08 to R$3.1 million in 2Q08. As a share

of net revenue, parent company expenses posted a decline of 0.8 pp, from 5.6% in 1Q08 to 4.8%

in 2Q08, representing scale gains as a result of the increase in the Company’s revenue.

In general, operating costs increased by 23.6%, from R$ 26.8 million in 1Q08 to R$33.1 million in

2Q08, in line with the growth in net revenue. Average total cost per subsidiary rose by 8.6%,

from R$1.39 million in 1Q08 to R$1.51 million in 2Q08.

As a share of net income, average total cost per subsidiary declined by 0.4 pp, from 2.7% to

2.3%, also pointing to scale gains in our operations.

Adjusted Net Income

In 2Q08, Brasil Brokers’ adjusted net income was R$29.6 million, for adjusted net margin of

45.6%. The combined operating net income of subsidiaries stood at R$26.9 million, excluding the

results of the parent company.

Adjusted net income excludes the goodwill amortization from acquisitions made and the financial

expenses recognized in the quarter as a result of the adjustment to present value of our long-

term indebtedness, pursuant to Law 11,638/07.

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In 2Q08, the Company’s adjusted net margin fell by 2.1 p.p. from 1Q08, as shown in the above

table, led by the performance in the Rio de Janeiro market, which came in below our

expectations, with a negative impact of 5.2 p.p. on the net margin of our subsidiaries when

compared to São Paulo and other regions. The table below shows this effect.

2Q08 Subsidiaries

Total

Rio de

Janeiro

São Paulo

and Others

Contracted GVS (R$ MM) 2,713 589 2,124

Net Revenue (R$ thousand) 64.8 13.8 51.0

Net Income (R$ thousand) 26.9 3.1 23.8

Net Margin (%) 41.4% 22.2% 46.6%

The information above refers to the subsidiaries, not incluing the numbers of the holding

The Company’s organic expansion through investment in the inauguration of 13 branch offices in

the period impacted net margin in the property resale segment, since the expenses with new

stores come before the revenue stream begins, with an extraordinary impact on margins in this

segment. This factor also negatively impacted the Company’s net margin in the quarter.

25.0

29.6

1T08 2T08

Adjusted Net Income (R$ MM)

1Q08 2Q08

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Adjusted EBITDA (1)

Brasil Brokers’ Adjusted EBITDA in 2Q08 was R$31.6 million, for adjusted EBITDA margin of

48.8%.

Reconciliation (R$ MM) 1Q08 2Q08

Adjusted Net Profit 25.0 29.6

Financial Revenue (7.0) (6.8)

IR and CS 7.1 8.4

Non Operating Results (0.0) (0.1)

Depreciation and Amortization 0.3 0.5

Minority Interest 0.1 0.1

Adjusted EBITDA (1) 25.4 31.6

Adjusted EBITDA Margin 48.6% 48.8%

(1) Adjusted EBITDA consists of income before net financial result, income tax and social contribution tax, depreciation

and amortization and non-operating income. Adjusted EBITDA is not a measure in accordance with generally

accepted accounting principles in Brazil (BR GAAP), does not represent cash flow for the periods presented, and

should not be considered a substitute for net income as an indicator of operating performance or as a substitute for

cash flow as an indicator of liquidity. Adjusted EBITDA does not have a standardized meaning and our definition of

Adjusted EBITDA may not be comparable to that used by other companies.

The below-expectations performance of the Rio de Janeiro market also impacted the EBITDA

margin of the combined subsidiaries, which was 4.9 p.p. lower in relation to São Paulo and the

other regions. The table below demonstrates this impact.

2Q08 Subsidiaries

Total

Rio de

Janeiro

São Paulo

and Others

Contracted GVS (R$ MM) 2.713 589 2.124

Net Revenue (R$ thousand) 64,8 13,8 51,0

EBITDA (R$ thousand) 34,79 4,87 29,92

EBITDA Margin (%) 53,7% 35,3% 58,6%

The information above refers to the subsidiaries, not incluing the numbers of the holding

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Estimated Payment of Acquisitions and Goodwill Amortization

In 2Q08, Brasil Brokers, pursuing its strategy of geographic expansion, acquired another

company in Manaus: Global. The payments related to these acquisitions, as mentioned above, will

be made in accordance with the net income of each of the acquired companies, following a pre-

established schedule. The table below shows the consolidated payment schedule on June 30,

2008, according to the scenario established by the Company:

Payment with Currence Coin

(R$ MM) 2008 2009E 2010E Total Cash

Jairo Rocha - 5.1 - 5.1

JGM - 3.9 3.4 7.3

Marcos Koegnikan - 2.8 2.4 5.2

Frema - - 1.8 1.8

Redentora - 3.9 6.4 10.3

Pointer - 4.3 2.9 7.2

Rede Morar 0.1 0.8 0.7 1.7

Global 13.5 2.6 7.0 23.0

TOTAL 13.6 23.4 24.7 61.7

Payments with Company Shares

(R$ MM) 2008 2009E 2010E Total Shares

Jairo Rocha - 5.1 - 5.1

JGM - 3.9 3.4 7.3

Marcos Koegnikan - 2.8 2.4 5.2

Frema - 6.8 4.2 11.0

Redentora - 7.3 3.5 10.7

Pointer - 2.2 2.9 5.0

Rede Morar - 0.5 0.5 1.0

Global - 10.5 4.7 15.2

TOTAL - 39.0 21.6 60.6

TOTAL 13.6 62.5 46.2 122.3

The total value of companies acquisition indebtedness is the same number from the balance quarter

according to 11.638/07 law, that brings the liabilities to the present value.

Of the 50,312 shares held in treasury after the IPO, we used 15,991 to pay the initial installments

of the acquisitions. The Company still has a balance of 34,321 shares in treasury.

The amortization of the investments described above will be made in 10 years. The chart below

shows the estimated amortization schedule:

Period 2008E 2009E 2010E 2017E 2018E TOTAL

Total (R$ thousand) 14,108 18,284 18,284 18,284 4,351 183,010

17


Income Tax and Social Contribution Tax

Income tax and social contribution tax applicable on the net income of Brasil Brokers was R$8.4

million in the quarter. Of this amount, R$7.6 million refers to tax at subsidiaries, equivalent to

10.6% of their gross revenue in the period, in line with the 10.7% in the prior quarter.

Cash and Cash Equivalents

In 2Q08, cash and cash equivalents totaled R$262 million, of which R$237 million was at the

parent company level. These amounts refer to investments in certificates of deposits and fixed-

income funds, with returns ranging from 100% to 108% of the CDI overnight rate.

Cash flow from operations in the quarter fell by R$2.5 million versus 1Q08, due to an equivalent

increase in the Company’s accounts receivable.

Investment cash flow stood at R$15.0 million this quarter, of which R$7.2 million was related to

the initial installment in the acquisition of subsidiaries, R$5.0 million to the organic expansion of

our operations, with the opening of another 13 branch offices, and the remaining R$2.8 million to

investments at the parent company to purchase equipment, systems and consultancy services to

support our operations.

1Q08 2Q08

Cash Flow (R$ MM)

Operartional Activities 14,8 12,3

Investment Activities (36,3) (15,0)

Financial Activities (0,6) -

Cash Equivalents in the period 265,5 262,80

Indebtedness

Total debt stood at R$126.6 million at the close of the quarter. Of this amount, R$122.4 million

was related to liabilities with the new partners as a result of the last 8 acquisitions made. This

amount already includes adjustments under Law 11,638/07, whereby a company’s liabilities are

calculated at present value using a discount rate of 13% p.a.

The remaining balance of R$4.5 million is composed of loans contracted at financial institutions in

the total amount of R$0.3 million, R$2.5 million related to provisioning for the payment of

dividends to the founding partners as a result of the use of profit generated up to the public offer

settlement date and R$1.3 million in loans with related parties connected to the transition process

for the acquisition of subsidiaries.

18


Financial Data

Results (R$ thousand) 2Q08 1H08

Launched GVS 5.253.983 8.453.219

Contracted GVS 2.712.825 5.116.921

Gross Revenue 70.647 127.397

(-) Sales Taxes (5.832) (10.248)

Net Revenue 64.815 117.150

Cost of Services and Personnel Expenses (30.049) (53.828)

Cost of Services (7.399) (13.258)

G&A (22.650) (40.570)

Depreciation (397) (649)

Financial Result 18 (60)

Revenues 379 541

Expenses (361) (601)

Operating Result 34.575 62.612

Non operating Result 25 (133)

Taxes and Social Contribution Provisions (7.552) (13.667)

Subsidiaries Net Income 26.860 48.812

Subsidiaries Net Margin 41,4% 41,7%

Holding Adjusted Expenses (3.221) (6.236)

Holding Financial Revenue 4.515 11.569

Investments Amortization (3.913) (4.966)

Taxes and Social Contribution Provisions-Holding (852) (1.824)

Holding Results (3.472) (1.457)

Minority Equity (55) (111)

Net Income 23.333 47.243

Net Margin 36,0% 40,3%

Investment Amortization (3.913) (4.966)

Adjusted Present Value Liabilities (11.638/07) (2.306) (2.306)

Adjusted Net Income 29.553 54.515

Adjusted Net Margin 45,6% 46,5%

Adjusted EBITDA 31.672 57.295

Adjusted EBITDA Margin 48,9% 48,9%

19


Balance Sheet on June 30, 2008 - Assets

(R$ thousand)

Holding Consolidated

Current Assets

Cash, Cash Equivalents 236,918 262,863

Accounts Receivable - 53,768

Tax to Recover 3,556 4,639

Loans and other credits with related parties - -

Prepaid Expenses 79 317

Other Current Assets - 1,377

Total Current assets 240,554 322,965

Noncurrent assets

Long term assets

Accounts receivable from clients - 3,312

Related parties 2,818 1,481

Advance for future

capital increase 3,258 -

Other Credits - 28

Investments in controled Companies 61,740 -

Property 2,012 14,835

Goodwill investments 178,816 179,342

Deferred 2,729 3,826

245,297 198,003

Total Noncurrent Assets 251,374 202,824

Total Assets 491,927 525,789

ASSETS

20


Balance Sheet on June 30, 2008 - Liabilities and Shareholders’ Equity

(R$ thousand)


Current Liabilit ies

Loans and Financing - 166

Suppliers 370 4,114

Wages and Burden Payable 515 5,331

Taxes and Cont r ibut ion payable 962 16,421

Advance f rom client s - 239

Payable Account s - Com pany Acquisit ion 56,544 56,544

Loans and ot her relat ed par t ies payable 31 1,305

Usufruct of result s - 2,461

Ot her Account Payable 442 1,511

Total Current Liabilit ies 58,865 88,091

Noncurrent Liabilit ies

Long term liabilit ies

Loans and Financing - 231

Relat ed Par t ies - -

Provisions for cont ingencies - 2,524

Taxes Payable - 187

Payable Account s - Com pany Acquisit ion 65,886 65,886

Invest im ent Provisions (Losses) 1,003 -

Others accounts Payable - 2,627

Total Noncurrent Liabilit ies 66,888 71,455

Minor it ary Int erest 69

Shareholders'

Subscr ibed Capit al 304,234 304,234

Capit al Reserve 23,522 23,522

Accum ulat ed Losses 38,418 38,418

Total Shareholders' Equity 366,174 366,174

Total Liabilit ies and Shareholders' Equity 491,927 525,789

Liabilities and Shareholders' Equity

21


Period from April 1 to June 30, 2008


Revenues of Services - 70.647

Taxes on revenues - (5.832)

Net revenues - 64.815

Cost of services provided - (7.399)

Gross Income - 57.416

Operating costs and expenses

Administratives expenses (2.770) (22.343)

Management remuneration (324) (3.400)

Depreciation and amortization (127) (524)

Goodwill amortization (3.913) (3.913)

Financing expenses (2.282) (2.643)

Finencing Income 6.797 7.176

Other operating revenues 0 (53)

Equity pick-up 26.805 -

24.186 (25.702)

Operating Income 24.186 31.714

Non-operating revenues, net - 78

Income before taxes 24.186 31.792

Income tax (624) (6.122)

Social contribution tax (228) (2.282)

Minority interest - (55)

Net income for the period 23.333 23.333

Financial Statements

22


Statement of Cash Flows

Period from April 1 to June 30, 2008

Cash FlowHolding Consolidated

Net Income of the period from 04/01/2008 to 06/30/2008 23,333 23,333

Adjustments for reconciliation between losses and net operating revenues

Depreciation and Amortization 4,041 4,438

Equity Income (26,806) -

Investiment Provisions (Losses) 299 -

Provisions for contingencies - 626

Adjusted Net Income 867 28,397

Variation between Assets and Liabilities

Accounts Receivable - (17,566)

Taxes to recover (858) (973)

Accounts Receivable - related parties (793) (284)

Other current assets (31) 234

Advance for Future Capital Increase (942) -

Others Long Term Assets - 209

Suppliers 163 977

Wages and Burden Payable 147 1,459

Taxes and Contribution to recover (102) 3,412

Taxes and Contribution payable - (12)

Advances from Clients - (211)

Payable to related parties - 375

Usufrute of Results - (2,518)

Other Current Liabilities (455) (1,545)

Others Long Term Liabilities - 380

(2,871) (16,063)

Net Cash Used in Activities (2,004) 12,334

From Investment Activities

Investments (619) -

Fixes Assets (1,500) (6,154)

Intangible Assets (7,353) (7,391)

Deferred Assets (1,185) (1,462)

Net Cash Used in Investment Activities (10,657) (15,007)

From Financing Activities with Third Parties

Loans and Financing - (14)

Net cash from financing activities with third parties - (14)

From financing Activities with Shareholders

Minority Shareholders - 57

Net cash from financing activities with shareholders - 57

Availability Increase (losses) (12,661) (2,630)

Cash and equivalent in the beggining of the period 249,579 265,493

Cash and Equivalent in the End of the period 236,918 262,863

Documents

2Q08 Earnings Release Brasil Brokers announces 2Q08 Results · with the inauguration of four new branches (Icaraí, Fonseca, Piratininga and São Gonçalo), as well as the inauguration