4. MRV´s Operational
4
Demanded offsite infrastructure
“Total Quality” Project
Industry wise / Budget assumptions review
Provision for real estate maintenance
Earnings
Release 1Q12
MRV
Industry
Average*
A) Provision for real estate
maintenance
145 46
B) Cost of goods sold 6,572 8,830
A/B 2.2% 0.5%
*Aon 12/31/2011
*B accumulated in the last 4 years
Amount in R$ million
*Average ofthe 5 largest companies in the sector, ex-MRV.
Cost Pressure coming from:
Being addressed by:
Higher unit prices
Brand recognition
Large sites → Best practices dissemination
Cost control
Cushion for future maintenance / warranty
→ R$ 163 million for provision in the end of 1Q12
85% projects ahead schedule
10% on schedule
5% delayed
5. Land
Acquisition
Real Estate
Development Cycle
Launches Sales
G&A expenses
Revenues and
Cash Collection
Established foot print → lower geographic expansion in the future
Established SSC and client’s service area
SG&A Expenses
5
Earnings
Release 1Q12
Expenses growth is fading…
Lower growth of G&A expenses (absolute terms)
Commercial expenses aligned with sales growth
G&A dilution in the future
Looking forward…
6. Client Financing, Cash Burn and Funding Sources
6
Client Financing (units) Cash Burn MRV Homebuilding (R$ million)
Construction financing → important source of funding. Plenty from CEF & BB;
6th debenture issuance → R$ 500 million;
Earnings
Release 1Q12
216
79
138 141
109
Quarterly
Avg.
2008
Quarterly
Avg.
2009
Quarterly
Avg.
2010
Quarterly
Avg.
2011
1Q12
5,593
7,628
8,833
1Q11 4Q11 1Q12
58%
16%
Best quarter in the Company´s history regarding client financing
Lower quarterly cash burn→ Positive cash generation in 2012’s consolidated;
Defined funding sources
Conservative cash management matching assets and liabilities
8. Disclaimer
8
This presentation may contain certain forward-looking statements and information relating to MRV that reflect the current views and/or expectations of
the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any
statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “believe,” “anticipate,”
“expect,” “envisages,” “will likely result,” or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties
and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives,
expectations, estimates and intentions expressed in this presentation. In no event, neither the Company nor any of its affiliates, directors, officers, agents
or employees shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the
information and statements contained in this presentation or for any consequential, special or similar damages.
This presentation does not constitute an offer, or invitation, or solicitation of an offer to purchase any securities. Neither this presentation nor anything
contained herein shall form the basis of any contract or commitment whatsoever.
The market and competitive position data, including market forecasts, used throughout this presentation was obtained from internal surveys, market
research, publicly available information and industry publications. Although we have no reason to believe that any of this information or these reports are
inaccurate in any material respect, we have not independently verified the competitive position, market share, market size, market growth or other data
provided by third parties or by industry or other publications. MRV does not make any representation as to the accuracy of such information.
EBITDA is not a Brazilian GAAP and IFRS measure and should not be considered in isolation and should not be considered an alternative to net income, as
an indicator of our operating performance or cash flows or as a measure of our liquidity. EBITDA does not have a standard definition and other companies
may measure their EBITDA in a different way.
Earnings
Release 1Q12
