Gafisa day Presentation

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Gafisa Day PresentationMarch 11, 2009

Important Notice

• 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.

• 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,'' ''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 factors that will determine these results and values are beyond our ability to control or predict.

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3

Agenda

Introduction

Market and Macroeconomic Overview

Tenda

Wrap–up and Q&A Period

Gafisa: the Company

Gafisa Segment

AlphaVille

4

Agenda

Introduction


Tenda


Gafisa: the Company

Gafisa Segment

Alphaville

5

Wilson Amaral, CEO

Duilio Calciolari, CFO

João Audi, Managing Director, AlphaVille

Antonio Carlos Ferreira, Managing Director, Gafisa

Carlos Trostli, CEO

Paulo Mazzali, CFO

Management present

200652

1.005

2.236

4.195

2004 2005 2006 2007 2008

6

Launches2004-2008 CAGR: 87%

Our Company

R$ million

Sales2004-2008 CAGR: 78%

R$ million

254 450995

1.627

2.578

2004 2005 2006 2007 2008

60% control of TendaEquity Int’l increases stake by 5%

IPOAlphaVille Acquisition

Gafisa founded

GP takes control of the Company

Equity Int’l (Sam Zell) invests

Follow-on Equity OfferingNYSE listing

1954

2004

2005

2006

2007

2008

7

Agenda

Introduction


Tenda


Gafisa: the Company

Gafisa Segment

Alphaville

20.9%17.6%

8.8%

7.9%

10.3%

3.6 3.6

Cohabitation

Inadequate Housing

8

HOUSING DEFICIT PER REGION IN 2007In Thousands of Homes

Source: IBGE, FGV 2007, Ernst & Young

12.8%Relative Deficit

BrazilTotal Deficit: 7.2 million Homes

Brazil has a housing deficit of 7.2 million homes

1,223.5 1,235.6

Northeast2,459.1

446.6

550.6

North997.2

Central-West

236.4

123.6

360.0

468.2

257.8

South726.0

1,265.21,402.3

Southeast2,667.5

Brazil has a population of 190 million, 83% urban, 43% below 24 years.

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Source: Brazilian Geography and Statistics Institute (IBGE), FGV, Ernst & Young.

New Families per year (in thousands)Monthly Income (Million Families)

Increased purchasing power will generate greater demand for new housing

Up to R$ 1,000 31.7 53% 29.1 31%

From R$ 1,000 to R$ 2,000 15.5 26% 27.6 29%

From R$ 2,000 to R$ 4,000 8.4 14% 21.8 23%

From R$ 4,000 to R$ 8,000 3.3 5% 11 12%

From R$ 8,000 to R$ 16,000 1.1 2% 4.3 5%

From R$ 16,000 to R$ 32,000 0.3 0% 1.3 1%

More than R$ 32,000 0 0% 0.3 0%

TOTAL 60.3 100% 95.4 100%

2007 2030

(113)

526

582

334

139

44

13

1.526

New Housing Formation

10

Brazil’s housing industry provides ample opportunity for growth and consolidation

• Real estate market highly fragmented, with no dominant player

• Biggest markets in Brazil are São Paulo and Rio de Janeiro. Gafisa is one of the largest players, yet its estimated market share is only ~ 5% in São Paulo and ~ 6% in Rio de Janeiro

• Untapped potential, especially in markets where the housing deficit is high

1

2%

58%

69%

13% 11%

US Spain Chile Mexico Brazil

11

Despite strong mortgage market growth recently, Brazil has low mortgage penetration

Source: JP Morgan, 2008

Mortgages to GDP

Sources: IBGE, BC. Does not include financing of existing homes.

Total Households

New Households

Formed

New Homes Financed by

SBPE and FGTS

% Financed Over New

Households

2002 48,035 1,530 83 5%

2003 49,710 1,675 104 6%

2004 51,752 2,042 112 5%

2005 53,114 1,362 101 7%

2006 54,610 1,496 151 10%

2007 56,343 1,733 166 10%

Households (in thousands)

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Over the last few years, housing credit has increased – with better rates and longer terms

Source: Banco Central do BrasilNote: Housing credit available through December

Interest Rates vs. Housing CreditDec, 2008 – Interest rate=12.75%

Source: Febraban

Evolution of Financing TermsAverage term in running days – Housing Credit

0%

5%

10%

15%

20%

25%

30%

Dec

-02

May

-03

Sep-

03

Feb-

04

Jun-

04

Nov

-04

Mar

-05

Jul-0

5

Dec

-05

Apr

-06

Aug

-06

Jan-

07

May

-07

Sep-

07

Jan-

08

Apr

-08

Jul-0

8

Oct

-08

Jan-

09

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

Interest Rate (Selic) Real Estate Credit (R$MM)

0

500

1,000

1,500

2,000

2,500

3,000

Jan-

03

Jul-0

3

Jan-

04

Jul-0

4

Jan-

05

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

13

Consumer mortgage financing has grown exponentially

Housing Credit GrowthCAGR (2003-2008): 43%

(R$ bn)

Sources: ABECIP, Banco Central do Brasil, CEF and FGV.

Savings Accounts and FGTS BalancesOver R$400 billion available (R$ bn)

115 126 135 150 187 215

154 161 173186

198210269 287

308336

385425

2003 2004 2005 2006 2007 2008

Saving Accounts Balance FGTS Balance

2.2 3 4.99.3

18.3

30.1

3.8 3.95.5

7

6.9

11.3

6 6.910.4

16.3

25.2

41.4

2003 2004 2005 2006 2007 2008Housing Credit using resources from FGTS

Housing Credit using resources from Savings Accounts

Recent government measures are expected to stimulate growth

• Since September 2008, the Brazilian government has made nearly $400 bn available to Brazilian businesses and consumers through the following vehicles:

Sources: Brazilian Central Bank, Gazeta Mercantil and Goldman Sachs

Value

Treasury funds lent to BNDES for onlending 100.0

Reduction of reserve requirements 99.2

Relaxation of bank capital requirements/ reg. changes 81.2

Supply of dollar hedge via dollar-swaps 33.3

Incremental farm lending 19.0

Cash foreign exchange sales to market 14.3

BNDES capital increase from National Treasury 15.0

FX made available thru repurchase auctions 7.4

Auctions of dollars for trade finance 6.0

Permission for small banks to use FGC funds for lending 5.4

Banco do Brasil new lines for small and medium companies 5.0

Income-tax schedule changes 4.9

Banco do Brasil new credit lines to automaker banks 4.0

Reduction of tax on financial operations 2.5

Reduction of industrial production tax on cars 1.0

Total 398.2

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Additional R$10 billion to finance up to 20% of each development, at rates of TR+10% to TR+11%, within the limits of the 65% of savings balances which must be used for real estate financing.

FGTS Oversight Board announced new financing conditions:

• Builders: R$3 billion of FGTS to finance up to 80% of each development at TR+7% per annum for properties up to R$130,000, and TR+9%

New Housing Package expected. Goal is to build 500,000 to 1 million new houses by 2010, focusing on the low-income segment.

Dec2008

Mar2009

Oct2008

Specific measures for homebuilders have already been announced

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Government to announce additional measures to support the sector

• Improved mortgage terms to increase attractiveness:– Lower costs related to insurance and origination– Use of Price Table, abandoning Constant Amortization System– 30-year maturity with loan to values close to 100%.

• Creation of Guarantee Fund to allow for a bridge of mortgage payments in case of unemployment

• Extend the Housing Financing System (SFH) eligibility requirements to allow unit values to R$500,000 from R$350,000

• Direct use of monthly worker’s compensation fund (FGTS) contribution to pay part of home buyer’s total installment

• Subsidies will be provided in inverse proportion to income level

I d t t t i tt ti

Government is expected to announce soon a plan to build up to 1 million new houses through 2010; special attention given to low income segment.

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Agenda

Introduction


Tenda


Gafisa: the Company

Gafisa Segment

Alphaville

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Key competitive advantages

100% focused on the residential market in all

income segments

Professional management

with a significant pipeline of talent

National reach &

strong local partnerships

Large land bank to sustain future growth

Well-developed

and recognized

brands

Reputation for financial discipline

181818

The strongest platform to sustain leadership in the

rapidly growing lower income segments

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Gafisa is present in all income segments

Source: FGV/CPS, Feb. 2009

15,2%

52.3%

32.6%

Middle Income LevelBetween R$1,115 and R$4,807

Low Income LevelUp to R$1,115

High and Mid-High Income LevelAbove R$4,807

9.1 million families

31.5 millionfamilies

Families by Income Level* Gafisa Brands

Total: 60.3 million families

19.7 millionfamilies

15.1%

* Income percentage in six Brazilian metropolitan areas

Comprehensive portfolio of products

• Gafisa & Tenda’s Offerings:

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High-income Mid-high Middle IncomeAffordable Entry

Level

Terraças Alto Lapa

São Paulo – SP

Average unit price: R$ 399,000

Parque Barueri

Barueri – SP

Average unit price:R$ 224,000

Tenda Clube Vivaldi

São Paulo - SP

Average unit price: R$ 70,000+

Nice

Manaus – AM

Average unit price: R$ 800,000

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Professional management and established organizational structure

• Management with extensive experience in the sector

• Senior management with knowledge of diverse industries

• Reputation for on-time and on-budget execution

• Dedicated teams for each business line / market

• Standardized procedures with modern management system and tools

Our Product Lines:Focused Management for Each Market

Mid, Mid High and High

Vertical

Metropolitan areas

Financing: Banks

Unique Projects

Unit Prices: > R$200K

Sales through own sales force and brokers

60% owned by Gafisa

Mid High and High

Horizontal (lots)

Outside Metropolitan Areas

Financing: Direct

Unique Projects

Unit prices: R$70K –R$500K

Sales through own sales force and brokers

60% owned by Gafisa

Low Affordable Entry Level

Horizontal / Vertical

Metropolitan Areas and Outskirts

Financing: CEF and Banks

Standardized Projects

Unit Prices: R$50K –R$200K

Sales in stores through own sales force - and brokers

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National reach and strong local partnerships

• The partnership strategy has many benefits:

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Local market knowledge

Local culture knowledge

Access to local government, reducing time of approvals

Access to business opportunities

Reduce barriers to entry

Local operational support

A diversified, high quality landbank, with 53% acquired through swaps

• 199 different sites throughout the country

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Company Potential Units (100%)

Potential Units(% Gafisa)

Future SalesR$ billion

Swap%

Total

ALPHAVILLE

TENDA

GAFISA 22,412 19,050 7.68 40

32,122 16,432 3.03 97

70,116 67,578 6.34 20

124,650 103,060 17.05 53

The size of the land bank gives us the ability to develop it selectively, according to market demand

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The Gafisa brand is a household name

• Gafisa Is a Top of Mind, leading brand in our largest markets

• Our campaigns aim to reinforce Gafisa’s key brand attributes (honest, reliable, traditional, innovative and creative).

Safe Purchase GuideInstitutional Campaign Countdown to 1,000 Completed Buildings

GAFISA 22%

Spontaneous

13%

1st

2nd

3rd 10%

-

-

d

GAFISA 55%

Stimulated recall

32%

1st

2nd

3rd 29%

-

-

A reputation for financial discipline

• Strong relationship with the most important banks

• Sarbanes-Oxley Article 404 compliance as of December 2008

• SAP management information systems

• Credit Ratings:

– Moody’s: international Ba2 and local A1.br

– Fitch: A-(bra) local

– Standard & Poors: BrA local

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Tenda is an anchor of the company’s future growth strategy

• Tenda is a platform for leadership in the affordable entry level segment:

– One of the largest land banks

– A business model with regional offices that enable strong local relationships with CEF’s (Caixa)

– Unique sales model based on retail stores that provides a range of products within a region

– Well trained own sales force focused exclusively on our products

• Gafisa owns 60% of Tenda shares and began consolidating 100% of this Company’s results as of October 21, 2008.

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Agenda

Introduction


Tenda


Gafisa: the Company

Gafisa Segment

Alphaville

Gafisa’s Products

• Gafisa’s products are priced at more than R$ 200,000 and targeted to families with monthly income above R$ 4,800 (High and Mid-High Income Levels)

Breakdown of families by income level(millions of families)

Source: Brazilian Geographic and Statistics Institute (“IBGE”) and FGVSoSoururcece:: BrBrazazililiaian GGeogra hphic a dnd Statistics Institute (“(“IBGE”)”) a dnd FGV

R$ 4,000 to R$ 8,000 3.3 11

R$ 8,000 to R$ 16,000 1.1 4.3

R$ 16,000 to R$ 32,000 0.3 1.3

> R$ 32,000 0 0.3

TOTAL 4.7 16.9

2007 2030

Within 23 years, 12 million new

families

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Condominiums Residential Buildings Planned Neighborhoods

Gafisa s Strategy

National presence

Strength of Gafisa brand Focus on sales

Products targeted to Mid, Mid-High and High segments and adapted to

regional needsStandardized processes

30

National Presence

• Developments in progress / Gafisa Landbank (Potential Sales Value)

Land Bank by Region

Land Bank by Segment• Up to R$ 200 thousand: 5%• R$ 200 to R$ 350 thousand: 28%• R$ 350 to 700 thousand: 50%• R$ 700 to 1,200 thousand: 12%• R$ > 1,200 thousand: 5%

North

5%

Center-West

3%

South

3%

Northeast

23%Southeast

66%2%

4%

16%

44%

EspiritoSanto

M inasGerais

R io deJaneiro

SãoP aulo

La

No

5

12 / R$380MM 22 / R$1.770MM

59 / R$5,080MM5903 / R$220MM

06 / R$230MM

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Geographic Expansion

• Expertise in local culture and market • Lowers barriers to entry• Business prospecting enhanced• Speeds approval processes

• Centralization of activities• Cost reduction (offices only in SP and RJ)• Business model easy to replicate

Number of Cities where Gafisa Launched • Due diligence analysis on land acquisitions

• Product and project development

• Marketing campaign• Sales management• Administrative and

financial management

• Business prospection• Licenses and permits• Customized customer

services

Assignments in a typical development

GAFISA PARTNER

Importance of Local Partnerships

32

2004 2005 2006 2007 2008

5

9

16

23

31

Sales Force

• Gafisa Vendas (Gafisas’s own sales Team):– Operating in SP, RJ and BA– 123 brokers– Dedicated teams for inventory, launches and online sales– Gafisa Sales participation in 2008:

SP RJ

42% Inventory29% Launches

45% Inventory41% Launches

• External Sales Force:– Partnerships with Brokerage Companies

• 7 in SP• 6 in RJ• 26 in New Markets

Sales force of approximately 8,000 brokers

35.0%43.0%

33

Gafisa Vendas sells only Gafisa’s

products, resulting in

Efficient Sale of Inventory

Standardized Products

• Average unit price between R$ 200,000 and R$ 350,000• Standardized projects for apartments with 2 and 3 bedrooms • Cost optimization• Reduction of construction cycle • Faster approval and launching

34

Unique projects

Exclusive support/follow-up during the construction works, allowing for customized blueprints and finishings

E l i /f ll d i

• Units price above R$ 350,000• Customer-driven feasibility studies

regarding different income levels• Projects designed according to features

considered important by customers (research)

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Current Scenario

Customers visiting sales stand several times

Decision-making period has increased from 20 to 70 days

Consumer / Buyer More Conservative

Customers concerned about reliable delivery:- customer research of real estate companies has increased

•Tradition: 54 years history.

•Reliability: 961 developments delivered.

•Credibility: 10 million m² built.

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New Launches

• Assumptions for new launches:

– Construction financing secured– Pre-launch period up to 90 days to confirm demand– Launch only if 40% of units are likely to be sold during first month

Examples:

Brink

11/30/2008Pre-marketing:

70 days

75%Sold in the 1st month

Alphaville Barra da Tijuca


20 days


Chácara Santana

Launching Date:


75 days


Launching Date: Launching Date:

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Case Study

Porto VelhoPopulation: 300,000 inhabitantsLocal economy stimulated due to the construction of 2 hydroelectric power plants

PSV: R$100 millionGafisa s Share: 80%

Units: 280 in 4 towers

Local market research:

�September ’07Local partner definition:

�November ’07

Land Acquisition:

�April ’08

Launch:

�September ’08

Sales:

�76%

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Agenda

Introduction


Tenda


Gafisa: the Company

Gafisa Segment

Alphaville

AlphaVille Overview40

41

• No national competitor in the segment

• The concept is well established throughout the country, with a visible presence in 38 Alphavilles in 26 different cities and 16 states

National Presence

2005

Top de Marketing

2007 2005

Superbrands2005

FIABCI2005

Pop ListMaster Imobiliário

AlphaVille – Brand Recognition Prizes

Strategic and Geographic Positioning

Brand Recognition

Track Record

Leadership Position

Master Developer

• AlphaVille is one of the best known brands in the country and the most desired in the markets where it is established

• Residential Lots in Gated Communities coupled with local Commercial Facilities

Project Approval Process

Long-term perspective and complex approval process are significant entry barriers to the segment

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PROJECT ANALYSIS

Analysis of legal and environmental aspects, location, market and feasibility studies

LAND SWAP CONTRACT

Contract with land owner

MKT & SALES On average, 80% of the units are sold in the launching week

CONSTRUCTION AlphaVille manages the construction, contracting third parties through a centralized procurement. Average development takes 2 years

OCCUPATION Customers are invited to begin construction of their houses under specific regulations developed for an organized occupation

DUE DILIGENCE / STRATEGIC ANALYSIS

PARTNER/ LAND SWAP CONTRACT OCCUPATIONPROJECT

APPROVALMARKETING

& SALES CONSTRUCTION

3 years 2 years

APPROVAL PROCESS

Development of master plan to be submitted to local authorities for analysis, registration and approval. This process takes an average of three years and deals with federal and local authorities

43

Launches (R$ Millions) Sales (R$ Millions)

Recent Growth

Steady launch growth at a CAGR of 46% since 2006

111

237

312

2006 2007 2008

140

238

300

2006 2007 2008

3

6

11

114%

32%

70%

26%

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(R$ Millions)

Sales Velocity Q4/08

December´ s Launches Barra-RJ Mossoró-RN Nova Esplanada-SP

Launching date Dec. 13th Dec. 5th Dec. 17thLaunched PSV 59,6 12,1 29,4 So ld PSV 53,6 12,0 21,0 Sales / PSV - unt il December 31st 90% 99% 71%Launched Units 249 119 472Average Ticket (R$) 713.721 101.454 207.931Average R$/ m² 1.002 260 300

The average sales of these 3 launches reached 86% above the PSV, in spite of adverse market conditions.

Note: Total PSV amounts to R$172 million, part belonging to Alphaville and part to Gafisa Segment

Land Bank reaches R$3 billion

Targeting cities that have unique commercial potential

Dec 08Areas VGV

São Paulo State 978

Brasília 668

Porto Alegre - (2 projects) 207

Florianópolis - (2 projects) 177

Among Other 18 areas 1.001 Total 3.032

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Land Bank of almost 10 years based on 2008 launch level; 98% of them based in land swaps

PSV potential (R$ millions) Total

January 1st 2008 2,929

Launches 2008 PSV (313)

Additions 2008 314

Revision/Change in PSV 102

Land Bank position in december 2008 3,032

Land Bank AUSA sustains 9.7* years* Based on 2008 launching figures

Prospective Pipe Line of 4.4 billion

46

A typical Alphaville project

RESIDENTIAL AREAS

LEISURE AREAS

COMMERCIAL AREAS

BUILDING AREAS

ALPHAVILLE CLUB

GOLF COURSE

COMMERCIAL AREAS RESIDENTIAL

AREAS

RESIDENTIAL AREAS

AlphaVille Graciosa (Curitiba, Paraná)

Project Design

Highly sustainable business model

Land swaps: no cash outlay

Infrastructure development after the launch

Outstanding Sales Velocity

Use of Alphaville Foundation to help the social integration of neighborhood

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CONTRACT DATE: 2002

LAUNCH DATE: December 2007

LOCATION: Vitória - ES

PSV R$: 102.9 Million

PRICE R$/m²: 275 (launch price)

UNITS: 775

SALEABLE AREA: 475,000 m²

SALES SPEED: 90% upon launch

SALES MIX: 40% Short Term

Case StudyAlphaVille Jacuhy – Vitória - ES

Case StudyJacuhy – Vitória - ES

Construction started on Jan/08

48

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R$ Millions

Construction – 24 months

90% sold on launching week

Minimum Cash Exposure

Receivables securitization after completion

Case StudyJacuhy – Vitória - ES

50

Agenda

Introduction


Tenda


Gafisa: the Company

Gafisa Segment

Alphaville

51

FY2008 and 4Q08: Financial & Operating Highlights

1,204

1,740

2007 2008

Net Revenues

526336

2007 2008

Gross Profit

221

137

2007 2008

EBITDA

110

92

2007 2008

Adjusted Net Income

Net Revenues (R$ million) Gross Profit (R$ million) 544*

56%

61

261*

171*40

45%

61% *

20%

$$ million) 44$ million)*Excluding non-recurring items

Net Income (R$ million)EBITDA (R$ million)

7.6% 6.3%12.7%11.4%

30.2%27.9%

4*4*** 31.3%

9.9%

15%

52

Gafisa’s Solid Financial Position

• R$606 million cash in addition to R$300 million in securitizable receivables.• R$3.4 billion in construction finance lines of credit provided by all of the major banks:

– R$1,699 million signed contracts– R$751 million contracts in process– R$951 million additional availability

• 73% of our debt is long term

4Q08 3Q08 4Q07

Total Debt 1,552 1,377 695

Cash and Cash Equivalents 606 790 517

Obligation to Investors 300 300 0

Net Debt & Obligation to Investors 1,246 887 178

Shareholder’s Equity 1,612 1,689 1,485

Total Capitalization 3,164 3,066 2,180

Net Debt & Obligation to Investors / Equity 77.3% 52.5% 12.0%

53

Highest Trading Volume in Real Estate Sector

0

20

40

60

80

Gaf

isa

Cyr

ela

Ro

ssi

MR

V

PD

G

Ag

ra

Ten

da

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isa

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yara

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bin

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Bra

scan

Inve

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ur

Ro

dob

ens

EZ T

ec

Tris

ul

São

Car

los

JHSF

CR

2

0

750

1,500

2,250

3,000Avg. daily volume from Feb 01 of 2008 - Feb 28 of 2009 (R$ MM) Market Cap (R$ MM )

0100200300400500600

Feb-

06

Mar

-06

Apr

-06

Jun-

06

Jul-0

6

Aug

-06

Sep-

06

Oct

-06

Nov

-06

Dec

-06

Feb-

07

Mar

-07

Apr

-07

May

-07

Jun-

07

Jul-0

7

Aug

-07

Oct

-07

Nov

-07

Dec

-07

Jan-

08

Feb-

08

Mar

-08

May

-08

Jun-

08

Jul-0

8

Aug

-08

Sep-

08

Oct

-08

Nov

-08

Jan-

09

010203040

Volume (R$ MM) Price

NYSE Listing: Gafisa is the only Brazilian real estate company listed in the United States.

54

Agenda

Introduction


Tenda


Gafisa: the Company

Gafisa Segment

Alphaville

55

Key competitive advantages

• A presence in all income segments

• Professional management and a pipeline of talent

• National reach & strong local relationships

• Large land bank to sustain future growth

• Well-developed and recognized brands

• Reputation for financial discipline

• The strongest platform to sustain leadership in the rapidly growing lower income market segments

56

Strategy

• Continue diversification (Product & Geography)

• Maintain financial discipline and ‘preferred borrower’ status

• Benefit from expertise, positioning and key relationships in the fast-growing affordable housing segment

• Leverage reputation for quality and brand strength in new and existing markets

• Maximize sales of broad product portfolio through complimentary sales channels

• Focus on high-return opportunities

• Maintain land bank of 2-3 years

High ROE & Capital Appreciation

Superior Revenue Growth

57

Navigating the current market environment

• Ongoing Measures:

– Fortified product and geographic portfolio with acquisition of Tenda

– Implemented conservative approach to launch strategy

– Renewed focus on cash flow and returns

– Strengthening of financial relationships

– Launched consumer educational campaign “Safe Purchases”

Poised to respond quickly to new potential financing opportunities aimed at spurring continued growth in the sector

58

Outlook

– Given the current economic situation and the continued disruption in the credit markets, visibility on overall growth in the industry is limited.

– Despite these factors, we are optimistic that government actions including the additional R$3 billion in FGTS funds designated for financing within the construction industry, the stimulus program aimed at building one million houses by 2010, and the lowering of the Selic interest rate by the Central Bank will result in the increased availability of funds to support the growth of homebuilding.

– However, without all of the elements currently in place, we are not providing guidance in the short term.

– In 2009, we will continue to be very selective with our launches, conserve cash and increase our sales efforts towards our inventory.

59

Gafisa Day Presentation

www.gafisa.com.br

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Gafisa day Presentation