LPS Brasil reported financial results for 3Q12 with the following highlights:
- Net revenue of R$111.5 million, up 24% from 3Q11
- EBITDA of R$42.2 million with a margin of 37.8%, up from 3Q11
- Net income before IFRS of R$32.4 million, with a margin of 29.0%
- Mortgage originations through CrediPronto! totaled R$362 million in the quarter.
2. Forward-looking statements
This presentation does not constitute or form part of any offer, or invitation or solicitation of any offer to purchase,
sell or subscribe for shares or other securities of the Company, nor shall this presentation or any information
contained herein form the basis of, or act as inducement to enter into, any contract or commitment whatsoever.
This presentation contains financial and other information related to the business operations of Lopes –LPS Brasil
Consultoria de Imóveis S.A and its subsidiaries (“LPS” or the “Company”) as of and for the period ended
September 30th 2012. It should not be considered as a recommendation for prospective investors to sell,
purchase or subscribe for securities of the Company. The information presented herein is in summary form and
does not purport to be complete. No reliance should be placed on the accuracy completeness of the
information contained herein, and no representation or warranty, express or implied, is given on behalf of the
Company or its subsidiaries as to the accuracy completeness of the information presented herein.
This presentation contains forward-looking statements. Investors are advised that whilst the Company believes
they are based on reasonable assumptions by Management, forward-looking statements rely on current
expectations and projections about future events and financial trends, and are not a guarantee of future results.
Forward-looking statements are subject to risks and uncertainties that affect or may affect business conditions
and results of operations, which therefore could materially differ from those anticipated in forward-looking
statements due to several factors, including competitive pressures, Brazilian macroeconomic conditions,
performance of the industry, changes in market conditions, and other factors expressed or implied in these
forward-looking statements or disclosed by the Company elsewhere, factors currently deemed immaterial.
The forward-looking statements contained herein speak only as of the date they are made and neither
Management, nor the Company or its subsidiaries undertake any obligation to release publicly any revision to
these forward-looking statements after the date of this presentation or to reflect the occurrence of unanticipated
events.
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3. Schedule
I. Highlights
II. Operational Results
III. Credipronto!
IV. Financial Results
3
5. Highlights
Despite of 25%1 decrease in volume of launches from the market in the first 9
months of the year, LPS presented the same levels of launches as last year and
grew 5% in volume of transactions closed.
Total transactions closed of R$5.0 billion, up 16% from 3Q11;
Total transactions closed in the primary market of R$3.8 billion, up 14% from
3Q11;
Total transactions closed in the secondary market of R$1.2 billion, up 23% from
3Q11;
Net Revenue of R$111.5 million, increasing 24% from 3Q11*;
EBITDA of R$42.2 million, with margin of 38%, increasing 92% from 3Q11*;
Net Income of Controlling Shareholders before IFRS was R$25.5 million, with net
margin of 23%, increasing 94% from 3Q11*;
CrediPronto! originated mortgage loans worth R$362 million in 3Q12, bringing
the total in 9M12 to R$1.1 billion.
*Ex-Earn Out
1 - Source: Lopes Market Intelligence. It considers vertical residential projects, business units and flat/hotels launched in the most important brazilian regions.
5
7. Transactions Closed
Transactions Closed Number of Transactions Closed
(R$ thousand) (R$ thousand)
+16%
+16%
15,061
4,975
12,929 2,536
4,286
1,181 2,057
0,960
12,525
3,793 10,872
3,326
3Q11 3Q12 3Q11 3Q12
Secondary Market Primary Market
The Transactions Closed in 3Q12 achieved a growth of 16% over the same period last year.
7
9. Transactions Closed by Income Segment – Primary and Secondary Markets
Transactions Closed
R$ 4,286 million R$ 4,975 million
3Q11 3Q12
11% 7%
36% 34%
31%
31%
22% 28%
Units
12,929 units 15,061 units
3Q11 3Q12
9% 10%
12% 19% 34%
42%
36%
37%
<150 150-350 350-600 >600 9
10. Transactions Closed by Region – Primary and Secondary Market
Transactions Closed
3Q11 3Q12
5% 6%
4% 5%
12%
15%
8% 47%
50%
4%
24% 20%
São Paulo Brasília Nordeste
Rio de janeiro Sul Outros
10
12. Launches and Transactions Closed – Primary Market 9M12
Transactions Closed –
Launches 9M12 Launches 9M12
Primary Market 9M12
Market* LPS
LPS
-25% -1% +5%
51,0 17,3 17,0 10,5
10,0
38,0
9M11 9M12 9M11 9M12 9M11 9M12
Despite the 25% decrease in the volume of launches of the market, LPS presented
the same levels of launches as last year and growth in the volume of transactions
closed.
* Source: Lopes Market Intelligence. It considers vertical residential projects, business units and flat/hotels launched in the most important brazilian regions.
15. CrediPronto!
3Q12
R$362MM in Average LTV of Average Rate Average Period
1,134 Contracts
Mortgages 60,19% of 9,3% + TR of 311 months
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16. CrediPronto!
Financed Volume Financed Volume 9M12
(R$ MM) (R$ MM)
+1% +19%
358 362 1,063
895
3Q11 3Q12 9M11 9M12
In the third quarter of 2012, the CrediPronto! financed R $ 362 million, achieving an
accumulated volume of R$ 1,063 million in 9M12, that means an increase of 19% compared
the same period of the previous year.
16
17. CrediPronto!
Mortgages Portfolio
(R$ MM)
+10%
2,492
2,266
Starting Portfolio Ending Portfolio
Balance Balance
The Average Portfolio Balance in 3Q12 was R$2.3 billion.
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18. CrediPronto!
Ending Portfolio Balance
(R$ MM)
2.492
2.266
2.097
1.883
1.756
1.573
1.380
1.162
881
707
517
392
aug/10
nov/10
jan/11
mar/11
apr/11
aug/11
nov/11
jan/12
mar/12
apr/12
aug/12
jun/10
jul/10
sep/10
oct/10
dec/10
feb/11
may/11
jun/11
jul/11
sep/11
oct/11
dec/11
feb/12
may/12
jun/12
jul/12
sep/12
The ending portfolio balance grew an average of 7% per month since jun/10 and it’s
already at 2.5 billion.
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21. Gross and Net Revenue
Gross Revenue Net Revenue
(R$ MM)
(R$ MM)
115.2 +18% 97.9
Earn out Itaú 7.8 +24%
Earn Out Itaú 7.8
126.9 111.5
107.4 90.1
3Q11 3Q12 3Q11 3Q12
This quarter we have achieved R$ 111.5 million in net revenue.
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22. Gross Revenue Reconciliation
3Q12 - Gross Revenue Reconciliation (R$ Million)
Contracted Sales (a) 4,975
Net Comission (b) 2.38%
Gross Brokerage
118.3
Revenue (a) x (b)
Revenue to Accrue from Itaú
3.6
Operations
Other revenues 5.8
Ajustment to Present Value (0.8)
Gross Revenue 126.9
IMPORTANT CRITERIA FOR CONTRACTED SALES
The contracted sales released in the quarter is exclusively based on the invoiced sales,
which multiplied by the net commission result in the gross revenue of the quarter.
Thus, the contracted sales meets all the criteria for accounting the Company’s gross
revenue, even including the contract approval by the homebuilder. Additional sales
generated during this same period, that do not meet all the accounting criteria were not
considered as contracted sales of the period.
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23. Results 3Q12
Results 3Q12 Before IFRS
(R$ thousand)
Lauches Pronto! CrediPronto! Consolidated
Gross Service Revenue 93,180 27,957 5,765 126,901
Revenue from Real Estate Brokerage 89,555 27,957 5,765 123,276
Revenue to Accrue from Itaú Operations 3,625 - - 3,625
Earn Out - - - -
Net Operating Revenue 81,853 24,559 5,135 111,546
(-)Costs and Expenses (35,103) (14,386) (4,375) (53,865)
(-)Holding (11,365) (3,540) - (14,905)
(-) Stock Option Expenses CPC10 (384) - - (384)
(-) Expenses to Accrue from Itaú (238) - - (238)
(=)EBITDA 34,762 6,633 760 42,155
EBITDA Margin 42.5% 27.0% 14.8% 37.8%
(+/-) Other nonrecurring results - - - -
(-)Depreciation and amortization (3,484) (875) (16) (4,376)
(+/-) Financial Result 4,469 404 17 4,891
(-)Income tax and social contribution (8,099) (2,318) 106 (10,311)
(=)Net income before IFRS* 27,648 3,843 867 32,359
Net Margin before IFRS 33.8% 15.7% 16.9% 29.0%
(=)Net income after IFRS 21,399 (2,622) 867 19,645
Net Operating Margin 26.1% -10.7% 16.9% 17.6%
(-) Non-controlling Shareholders (2,943)
(=) Net Income Attributable to Controlling Shareholders After IFRS 16,702
Net Margin Controlling Shareholders 15.0%
*We co nsider the net inco me ajusted by no n cash IFRS 3 effects (B usiness Co mbinatio n) the best net inco me indicato r
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24. Net Income 3Q12 by segment
Net Income from launches 3Q12 (R$Thousand)
34%
3,385 4,710
26% 5,498
574
27,648
21,399
Launches Net Earnout impact Non-cash Taxes over Amortization of Launches Net
Income After IFRS call/put effect intangible assets intangible assets Income Before IFRS
Net Income from Pronto! 3Q12 (R$ R$Thousand)
16%
3,843
5,761
2,622
0
1,317
-11% 613
Pronto! Net Earnout Impact Non-cash Taxes over Amortization of Pronto! Net
Income after IFRS call/put effect intangible assets intangible assets Income Before IFRS
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28. Results 3Q12 – Pronto! Before IFRS
Pronto! Pronto!
EBITDA & Margin Net Income & Margin before IFRS
(R$ Thousand) (R$ Thousand)
+450% +412%
6,633 3,843
27.0%
5.6%
1,205 15.7%
-5.7%
-1,231
3Q11 3Q12
3Q11 3Q12
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29. Operational Expenses
Evolution of Operational Expenses*
(R$ MM)
+1%
68.5 69.4
3.7 4.4
Non recurring expenses 3Q12
(R$ million)
M&A Costs 2,0
64.8 65.0 Consulting Services 0,4
Total 2,4
3Q11 3Q12
CrediPronto!
Launches + Secondary (Pronto!)
29
* Does not consider IFRS
30. EBITDA
EBITDA*
Margin EBITDA¹(%)
(R$ MM)
29.5 +92%
Earn Out Itaú 7.5
42.2
(37.8%)
21.9
(24.4%)
3Q11 3Q12
* We consider the EBITDA, excluding other operating expenses (revenues), that considers IFRS non-cash, as the company
performance indicator 30
¹ The 2011 margin does not consider Itaú Earn Out net of taxes.
31. IFRS Impacts – Net Income before non-controlling shareholders
Before
Description IFRS Effects* After IFRS
IFRS
Net Operating Revenue 111,546 111,546
Costs and Expenses -69,392 0 -69,392
Depreciation and Amortization -4,376 -10,471 -14,847 (1)
Finance Result 4,891 -5,628 -737 (2)
Operational Profit 42,670 -16,099 26,571 (1)+(2)
Income tax and social contribution -10,311 3,385 -6,926 (3)
Net Income 32,359 -12,714 19,645 (1)+(2)+(3)
Non-controlling Shareholders -6,906 3963 -2,943 (4)
Net Income attributable to
controlling shareholders 25,453 -8,751 16,702 (1)+(2)+(3)+(4)
* IFRS 3 non cash effects (business combination)
(1) Amortization of Intangible Assets
(2) Combined effects: i) Gains and losses with net non-cash effects of call and put options from
controlled companies, based on the fair value according to future estimates and ii) non-cash impacts
from payable earnouts
(3) Deferred Income Tax over effects of call and put on LPS Brasil.
(4) Effects related to deferred income tax and intangible assets amortization on non-controlling
shareholders.
31
32. Net Income Attributable to Controlling Shareholders
Net Income Attributable to Controlling Net Income Attributable to Controlling
Shareholders After IFRS (shareholders of LPB3) Shareholders before IFRS * (shareholders of LPB3)
Net Margin¹ Net Margin¹
(R$ Million) (R$ Million)
29.7
Earn out Itaú 7.0
20.2
+94%
-26% Earn out Itaú 7.0
25.5
(23%)
22.7
(23%)
16.7 13.1
(35%) (15%)
3Q11 3Q12 3Q11 3Q12
¹ The 2011 margin does not consider Itaú Earn Out net of taxes. 32
*We consider the net income ajusted by non cash IFRS 3 effects (Business Combination) the best net income indicator