3. WHO IS DUXXI?
A NEW BRAZILIAN
COMPANY IN THE REAL ESTATE
BROKERAGE BUSINESS
OWNED BY THE MANAGEMENT
LISTED IN THE SÃO PAULO
STOCK EXCHANGE BOVESPA
DXXI3
4. VISION, MISSION & VALUES
VISION
To transform the purchase of real estate into
a rewarding, secure, enjoyable and for both the buyer
and the seller
MISSION
Marketing of real estate with a deeper understanding of what
buyers seek and what assets mean to them, through the work
of most qualified professionals and innovative, efficient and
effective processes
BRAND
VALUES
Ethics, dedication, long-term commitment, human
development, innovation and owned by the management
5. TO THE BRAZILIAN REAL
ESTATE BROKERAGE MARKET
Headquartered in São Paulo, we offer services for
commercial and residential properties for all classes and
we bring true value to our clients, brokers and investors
BUSINESS MODEL THAT
VALUES EFFICIENCY
EXPERIENCED TEAMS
TALENT AND TECHNOLOGY
OVER VOLUME
NO TIES TO PAST
MODELS AND NO
LIABILITIES OR
LEGACY COSTS
NEW COMPANY
NEW BEGINNING
NEW APPROACH
6. ECONOMIES’ GROWTH DYNAMICS 2013
GDP GROWTH Q1 2013
China
Turkey
Japan
South Korea
Chile
Turkey
China
1.6
1.6
0.8
0.8
Brazil
0.6
0.5
0.5
0.3
0.3
0.3
0.2
0.2
2.1
1.7
Brazil
1.0
Canada
Australia
UK
Colombia
USA
South Africa
Poland
Mexico
Germany
France
Euro Zone
Russia
Spain
Italy
6TH
LARGEST
GROWTH
0.0
0.0
-0.2
-0.2
-0.3
-0.4
South Korea
Japan
South Africa
Germany
UK
USA
Australia
France
Chile
Canada
Poland
Euro Zone
Spain
Russia
Italy
Mexico
1.5
1.1
0.9
0.7
0.7
0.7
0.6
0.6
0.5
0.5
0.4
0.4
0.3
3TH
LARGEST
GROWTH
-0.1
-0.3
-0.3
-0.7
-0.6
-1
Source: BACEN
GDP GROWTH Q2 2013
-0,5
0
0,5
1
1,5
2
-1
0
1
2
3
7. BRAZIL’S SOCIAL & ECONOMIC SCENARIO
BRAZIL IS NO LONGER AN ECONOMIC PROMISE. IT’S A REALITY
REGIONAL POPULATION AND GDP
SERVICES
POP.
GPD
8.4%
5.3%
GPD
POP.
GPD
7.4%
9.3%
POP.
GPD
POP.
GPD
14.3%
16.5%
69%
27.8%
POP.
13.5%
42.1%
INDUSTRIES
2013 GPD
US$ 2,2
Trillion
26%
55.4%
THE SOUTHEAST REGION
(SP, RJ, MG & ES)
CONCENTRATES
MORE THAN HALF OF BRAZIL’S GDP
AGRICULTURE
5%
5%
SOURCE: IBGE
8. Per Capta GDP : US$
GDP Growth
5.7%
4.3%
2.7%
1.3%
2000
7.5%
3.2%
4.0%
6.1%
5.2%
1.2%
- 0.3%
Interest Rates and Inflation Evolution
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
IPCA
2010
2.7%
SELIC
7,010
11,127
0,9
Brazil presented fast growth from
2000 to 2010, and although this pace
has slowed, the domestic economy
continues to growth in an unstable
world scenario
Per capita GDP rose significantly
between 2000 and 2010, increasing
real household income
Interest rates and controlled inflation
facilitated access to the credit
marketgrowth of 7% - 8% p.a.
The value of real estate assets should
increase at an average annual rate of
4% until 2030 (in real terms)
10. SOCIAL CLASS POPULATION DISTRIBUTION
2011
Total: 195 MM
10,5
6,4
Classes:
100,3
Total: 175 MM
A
96,2
69,6
65,9
10,5
6,4
B
C
D-E
Recently Brazil has become a nation with 50% of its population belonging to the middle class, with a great
potential for consumption. The richest classes (A and B) have also registered a significant growth
Sources: IPEA / PNAD (IBGE)
2003
11. BRAZIL’S REAL ESTATE MARKET
2013
201.032.714 INHABITANTS
1.26 MILLION JOBS (2.8%
ABOVE 2012)
5.7% OF BRAZIL’S GDP
R$109.2 BILLION (approx. US$50
BILLION) INVESTED CREDIT IN REAL
ESTATE, 32% MORE THAN 2012
529.8 THOUSAND UNITS FINANCED –
17% INCREASE OVER 2012
A 2/3 DECREASE IN HOUSING
DEFICIT IN BRAZIL WILL
COST R$18B PER YEAR
UNTIL 2030
SOURCE: E&Y/SBPE/CAGED/Sinduscon/FGV
12. MARKET
Unemployment X Actual Efficiency
Unemployment (%)
Actual Efficiency (R$ THOUSANDS)
12.5%
1.82
9.8%
1.76
9.3%
1.63
8.1%
6.0%
1.53
5.7%
1.48
1.43
1.54
1.67
1.86 1.88
Sources: IBGE, Bird, Febraban, FGV and CBIC - Câmara Brasileira da Indústria de Construção
BRAZIL’S REAL ESTATE
13. BRAZIL’S REAL ESTATE
MARKET
What it Should Be
R$ 271 bn/year
Main housing demand factors will generate an approximate
investment requirement of R$ 271 billion per year
HOUSING DEFICIT
Total investments to reduce the deficit by 2/3
by 2030 (R$ million)
Annual Investments (R$ million)
420,919
18,301
What it is (2013)
R$ 222 bn
Replacement of Homes
Estimated value of Housing Stock (R$ million)
Annual Investments for Replacement (R$ million)
1,967,000
59,010
DEMOGRAPHIC CHANGES
Demand for New Homes During Period (millions)
Demand for New Homes/Year (millions/year)
Necessary Investments in Homes (R$ millions/year)
36.9
1.6
194,500
Real Estate
Sector’s GDP
14. BRAZIL’S REAL ESTATE
MARKET
338
258 261
260
267
267
277
145
293
308
225
158
146
282
298
169
184
What it Should Be
R$ 271 bn/year
317
213
222
7.9%
215
What it is (2013)
R$ 222 bn
6.4%
146
4.8%
133
127
3.7%
2.8%
1.8%
1.6%
1.6%
1.4%
1.7%
2002
2003
2004
2005
2006
1.7%
2007
2.1%
2008
2009
2010
2011
2012
2013P
Real Estate
Sector’s GDP
15. MARKET
Launches by Region
Brazil – 2012
28.5
79,9 million / 183 thousand units
11.1
10.8
3.9
3.3
3
2.7
2.4
2.2
2
2
1.9
1.5
1.3
1.1
1
0.7
Sources: IBGE, Bird, Febraban, FGV and CBIC - Câmara Brasileira da Indústria de Construção
BRAZIL’S REAL ESTATE
16. BRAZIL’S REAL ESTATE
MARKET
7.7%
63%
63%
62%
33.47%
3.0%
12.97% 12.56%
1.7%
6.68%
A&B
Groups
61%
34.33%
5.0%
Real estate financing/GDP (%)
Brazil 2011 / others 2010
85%
Absolute Housing Deficit
1997 - 2011
C Group
D Group E Group
Southwest
Northwest
North
South
60%
52%
41%
36%
23%
22%
16%
10%
5%
5%
Midwest
Sources: IBGE, Bird, Febraban, FGV and CBIC - Câmara Brasileira da Indústria de Construção
Access to Mortgage Lending
(% by Income Group)
17. MARKET
Number of Families by Income Group (million)
Income Groups Population from 18 to 64 years
Growth 2007 - 2030
(8%)
31.7
29.1
78%
27.6
2009
160%
21.8
15.5
233%
11.0
8.4
3.3
Less than
R$ 1K
R$ 1K to
R$ 2k
2020E
R$ 2K to
R$ 4k
2007A
R$ 4K to
R$ 8k
2030E
18%
36%
291%
1.1
4.3
R$ 8K to
R$ 16k
433%
64%
82%
0.3 1.6
More than
R$ 16k
A, B & C Groups
D & E Groups
Sources: IBGE, Bird, Febraban, FGV and CBIC - Câmara Brasileira da Indústria de Construção
The demographic dividend combined with the expansion
of the economy will allow the migration of 35.6 million
people from the actual D and E Social Class to A, B and C
in the next 10 years. It is reasonable to assume that these
new social configuration will certainly boost the demand
for housing
BRAZIL’S REAL ESTATE
19. MUCH HAS CHANGED OVER THE
LAST 10 YEARS
Traditional Model
M&A Based Models and/or Family
run businesses
Offline communications
Ordinary sales approach
Lack of investment in technology and processes
Low/no business intelligence
Unfocused operations/sectorized organization
THE TRADITIONAL MODEL CANNOT
KEEP UP WITH THE NEW DEMAND
Key Challenges
Real Estate is still a favorable market:
only the best players will succeed
Real Estate IPO boom drove
Companies need explore new and smarter
ways to sell inventories and launches
20. HIGHER OPERATIONAL
MARGINS
AND REVENUE GROWTH COMPARED
TO INDUSTRY AVERAGE
Y10 BUSINESS PLAN MAIN
GUIDELINES OF DUXXI:
CAGR 22%
349.3
CAGR 36.5%
PEER
GROUP
AVG.
MARGIN 35.4%
248.1
Net Revenue CAGR above
EBITIDA margin
group average
33%
53% above the peer
Strong cash position
Mandatory dividend policy of 25%
of net income
AVG
AVG
REVENUE
EBITIDA
22. CONSISTENT AND PLANNED SALES STRATEGY
SALES FORCE
1
Market intelligence
department
Highly trained teams / client
management guidance
Well defined incentives;
commissioning + benefits
Enhanced capacity to attract
efficient salesforce
CAPACITY TO ATTRACT AND RETAIN THE
BEST SALESTEAM IN THE INDUSTRY
PROCESS
2
Integrated front end; sales
front + ERP+ CRM
Streamlined process;
qualified team + contract
cycle management
Dynamic monitoring
salesteam activities
FOCUS ON CONTINUOUS IMPROVEMENT
4
Capacity to offer tailor-made projects and to
address new industry demands
3
ONLINE TOOLS
Reversed approach versus
traditional sales
Clients will filter options on
the website BEFORE reaching
to sales team
Intelligent too; geolocation,
local convenience (hospitals,
malls, schools, convenience
stores,etc)
ENABLES DEEP KNOWLEDGE ON
CUSTOMER BEHAVIOR
23. BUSINESS STRATEGY
TECHNOLOGY
1
2
READY FOR NEW
LOCAL CHALLENGES
ONLINE SALES TOOLS AND SMART
INTERFACES WITH CLIENTS AND
BROKERS
INNOVATIVE TOOLS WILL ALLOW A LOW
COST OPERATION WITH EFFICIENCY, QUALITY
TO MAXIMIZE RESULTS
3
KEY MANAGERS ARE ALSO STOCKHOLDERS AND
BROKERS ARE RECRUITED FROM THE BEST IN THE
MARKET
PROCESSES
TALENTS
OBJECTIVE
OUR GOAL IS TO BECOME ONE OF TOP 3 COMPANIES
IN THE BRAZILIAN MARKET IN THE NEXT 10 YEARS
24. STRATEGIC SHIFT IN
MARKET PARADIGMS
USER FRIENDLY INNOVATION
WORLD WIDE WEB IS THE
NEW MARKET PLACE FOR
ADVERTING AND MARKETING
REAL ESTATE PROPERTIES
DUXXI WILL LEVERAGE ON A
GROUND-BREAKING ONLINE STRATEGY
AND REINVENT THE BUSINESS MODEL FOR
DOING BUSINESS OVER THE INTERNET
WITH NEW SEARCHING, PRICING
AND COMPARING CAPABILITIES
25. STRATEGIC SHIFT IN
MARKET PARADIGMS
OPERATION EXCELLENCE
IN A NEW, FAST GROWING MARKET,
IT’S EASY TO BE OVERWHELMED BY THE
VOLUME OF BUSINESS COMING IN
DUXXI IS PLANNING, DEVELOPING AND
STRUCTURING THE MOST EFFICIENT
OPERATIONAL PROCESSES, BUILT UPON
THE BEST INDUSTRY PRACTICES
WE AIM HAVING THE LOWEST
COST OPERATION, HIGHEST
EFFICIENCY AND QUALITY
PROCESS TO MAXIMIZE RESULTS
AND COMPETITIVENESS
26. STRATEGIC SHIFT IN
MARKET PARADIGMS
FOUNDED AND MANAGED BY OWNERS
A BUSINESS IS FORGED THROUGH
INNOVATION, HARD WORK AND
FACE-TO-FACE RELATIONSHIPS
DUXXI IS A NEW, FULL-SERVICE COMPANY FOUNDED
OWNED AND MANAGED BY SOME OF THE MOST
SUCCESSFUL PROFESSIONALS IN THE BUSINESS
UNITED BY THE SAME PRINCIPLES AND VALUES
BY ATTRACTING TALENTS AS SHAREHOLDERS, WE
ENSURE LOYALTY AND LONG TERM COMMITMENT
TO OUR PROJECT
27. FINANCIAL
POSITION &
CORPORATE GORVERNANCE
Board of directors (5 members – 2 independent)
Listed in BM&FBovespa
Audited by PWC
Legal Advisor: Levy & Salomão
Quarterly financial reports
IFRS Accounting Standards
ERP system installed: Senior
Proprietary sales management
28.
29.
30.
31.
32.
33. OPERATIONAL SCHEDUALE
Headquarters and
operational offices setup
Supera IBG starts BPO
mapping
JUL 13
AUG 13
Foundation and listing
on BOVESPA & CVM
Business Plan prepared
by E&Y
Senior Management Hired
Infrastructure
and systems
implemented
Sales operations
Started
DEZ 13
OCT 13
SEP 13
CRECI brokerage
license obtained
Brokers team trained
and certified
NOV 13
Offices inaugurated
Expectations to
inaugurate new offices
JUN 14
FEV 14
Office in Santos
Inaugurated