20071002 apresentacao mz real estate eng

REAL ESTATE REAL ESTATE REAL ESTATE REAL ESTATE CONFERENCECONFERENCECONFERENCECONFERENCE

Agenda

COMPANY OVERVIEW

REAL ESTATE

KEY VALUE DRIVERS

NUMBERS

LOW INCOME OPERATIONS

65.5% 34.5%

FREE FLOAT49.5%

41.7%

8.8%

50.7%

42.1%

7.1%

Brazill

International

Retail

SpecialPurpose

Companies

51.0%

� IPO: January 31, 2007� Volume: R$ 522 million� Proceedings, Net: R$ 454 million� Selling shareholder: Itautec (8%)

Market cap (Sept 10, 2007): R$ 1.49 billion

Novo mercado� One share, one vote

� Full tag-along rights

� Corporate Governance

Company Overview

IPO SEPT 10, 2007

Real Estate arm of one of the largest industrial conglomerates in Brazil

Develops residential properties for all market segments and prime commercial properties

One of the largest land banks among Brazilian developers

All projects with excellent sales ratio

Aggressive growth , becoming one of the largest players in São Paulo in four years of operations

Company Overview - Summary

500

453

211

5590

1996 2003 2004 2005 2006

700

1,200

2007(E)

-39%

+115%

+165%

+284%

VGV Launched (R$ million)

CCDI is founded as the Real Estate manager of the properties of Camargo Corrêa

CCDI starts operations as real estate developer

CCDI acquiresstake in property in

Rio de Janeiro

1S07(R)

2S07(E)

Company Overview - Summary

IPO

Land Bank

VGV: 5.419,2 MM

Launched

VGV: 805,1 MM

Land Bank

VGV: 80,0 MM

Geographic Diversification

Land Bank

VGV: 150,0 MM

Launched

VGV: 386,80 MM

Land Bank

VGV: 1.398,8 MM

Launched

VGV: 117,5 MM

Coast

Land Bank

VGV: 130,0 MM

São Paulo

Minas Gerais (BH)

Rio de Janeiro

Ribeirão Preto

The São Paulo coast

MarginalPinheiros

Main Projects – Jardim Sul

6 Projects launched (from 2003 to 2007)

Total units: 656

VGV: R$ 326.2 million

Units Sold: 426 (65%)*

1 Project to be launched on 2nd Half of 2007:

Empresarial Jardim Sul

Small Offices

VGV: R$ 60MM

Units: 81

Main Projects – Jardim Sul

Shopping Jardim Sul

Av. Giovanni Gronchi

Main Projects – Arquitetura de Morar

5 Projects launched (3 in Dec 2006 and 2 in Jun 2007)

Total units: 508

VGV: R$ 232.2 million

Units Sold: 253 (49.8%)*

Bolder project, with urban conceptUn-gated community

New ecological road pavements

Landscaping and sidewalks

Delivered squares with green areas and usable leisure spaces

Project inspired by and paying tribute to the life and craft of Brazilian

maestro Tom Jobim

Main Projects – Arquitetura de Morar

Ventura Corporate TowersPartnership with Tishman Speyer (50%/50%)

Launchings: June, 2006 (phase 1) and June, 2007 (phase 2)

Location: Rio de Janeiro, RJ

Potential sales: R$ 386MM (100% CCDI) – R$ 772MM (total project)

Innovative commercial development in downtown Rio de Janeiro

LEED® Certified Green Building

Santos DumontAirport

Ventura CorporateTowers

Main Projects

Launchings: 2 phases (Cyprae in Nov06 and Cassis in Feb07)Total units: 131 VGV: R$ 117.5MMUnits sold: 95 (72.5%)3rd Phase due in 2008

Main Projects

São Francisco Golf Club

Osasco (RMSP)

Viveiro Marília VogtTotal units : 40

VGV: R$ 29.1MM

Units sold : 18 (45.0%)

Launched : May, 2007

Main Projects

Forte do GolfTotal units : 294

VGV: R$ 141.1MM

Units sold : 276 (93.9%)


Central ParkTotal units : 99

VGV: R$ 19.4MM (100% CCDI)

Units sold : 81 (81.9%)

Launched : Dec, 2005

Porto PinheirosTotal units : 75

VGV: R$ 57.3MM

Units sold : 70 (93.3%)


Av. Brig. Faria Lima

Marginal Pinheiros

Main Projects

REAL ESTATE

Declining Interest Rates and Larger Maturities Fuel Demand

Household Income Required: 4x 2005: ~R$5,800 (15.3 minimum wages)

Today: ~R$3,700 (9.7 minimum wages)

INCREASED AFFORDABILITY IS KEY

INTEREST (TR PLUS) 120 180 240 300 36013% R$ 1,452.01 R$ 1,259.63 R$ 1,185.11 R$ 1,152.75 R$ 1,138.0012% R$ 1,397.40 R$ 1,198.57 R$ 1,119.17 R$ 1,083.38 R$ 1,066.3811% R$ 1,343.80 R$ 1,138.72 R$ 1,054.42 R$ 1,015.05 R$ 995.5810% R$ 1,291.24 R$ 1,080.15 R$ 990.98 R$ 947.90 R$ 925.75

9% R$ 1,239.75 R$ 1,022.94 R$ 928.97 R$ 882.10 R$ 857.098% R$ 1,189.36 R$ 967.14 R$ 868.52 R$ 817.83 R$ 789.81

MONTHS

For the same unit price, monthly installment is down 36%

2005 Today

Real Estate Sector Attractiveness

Price of Unit : ~R$ 120,000Loan to Value : 80%Amount Financed : R$ 90,000TR:~2% per year

8%

4%

n.a.

>80%

8.7

3.7

1.7

12.5

16.5

7.0

3.3

35.0

MM %

1,900

3,800

7,600

1,200

5

10

20

3.2

R$MinimunWages

0.7

0.2

n.a

3.3

MM %

>90% 25.0 38.2 >1,200 >3.23.8

Real Estate Sector Attractiveness

Housing Deficit and Living Upgradescreate conditions for huge demand expansion

Housing Deficit Households Monthly Household Income Required

New Affordability

Cycle

KEY VALUE DRIVERS

STRONG

WELL-RECOGNIZED

BRAND

LAND BANK

MANAGEMENT

TEAM

DIFFERENTIATED

BUSINESS

MODEL

COMFORTABLE

CASH

POSITION

STRONG GROUP

SPONSORSHIP

Value Drivers

4.4%4.4%

1. 6%1. 6%

14.9%14.9%

38.5%38.5%

99.3%99.3%

100.0%100.0%

17.9%17.9%

58.9%58.9%

5.8%5.8%

Main Businesses

65.5%65.5%

Premier Listed Companies

� 67 years of operations

� Leadership role in

several industries

� National and

international presence

� Corporate Governance

� Financial soundness

� Results-oriented culture

� Capital discipline

Private-Held Companies

Strong Group Sponsorship

Steel

Energy Generation & Distribution

Highway Concession

Shoes & Sportswear

Denim (Jeans)

Financial Institutional Holding

Aluminum

Cement

Civil Works

Real Estate Development

First Company to go public bearing the “Camargo Corrêa” brand name

Brand recognition nationally and internationally (Latin America, Africa, Europe)

Main Attributes:� Trustworthiness� Professionalism� Credibility� Efficiency� Financial Soundness

Extensive Research: Top 3 in purchase intention on all tested markets

Extensive construction and complex project-related background

Our Brand, Our Asset

Camargo Corrêa facilitates access to human capital

Key personnel acquired from top tier companies�Young battle-tested team with over 400 projects on fold

Business focus - scalability� Shared service center serving over 40,000 employee-base� Located in the country-side of São Paulo (lower fixed costs)� Costs decreasing on a per-task basis� SAP® in place from day one

Incentives� Stock option plan under implementation� Bonus program based on financial and operational performance

Management Team

Extensive, valuable Land Bank� VGV: R$ 6.9 billion (100% CCDI)� Total area: 6.4 million square meters

Geographical, segment diversification� 120 plots in São Paulo, Rio de Janeiro, Ribeirão Preto, Belo

Horizonte

Duration: minimum of 3 years of launchings

Approximately 87% acquired through swaps, especially financial

Negotiations for new acquisitions underway

Land Bank

VGV*

Land Bank

0.9

0.2

0.1

3.6

SP (Country and

Shore)

RMSP Belo Horizonte

4.5

1.6

Rio de Janeiro

0.2 0.3

HM

1.8

* All Figures in R$ million, 100% CCDI

Residential

Commercial

Lots

Low Income

5,430

900

200

340

TOTAL 6,870

78.4%

13.5%

3.0%

5.1%

Type VGV* %

VGV*

* All Figures in R$ billion, 100% CCDI

11 new plots - 3,900,000 m²

R$ 1.9 billion in VGV

84% in swaps

New cities

Belo Horizonte

Santos

Guarujá

Taboão da Serra

Ribeirão Preto

0.5

5.1

0.36.92.2

1.9

30 new plots – 2,000,000 m²

R$ 0.34 billion in VGV

Country Side of São Paulo

Campinas

Sumaré

São José do Rio Preto

Jaguariúna

Land Bank

IPO 1H07 Launchings

Land Acquisition

Land Bank

No specific region and/or segment exposure in São P aulo (lands spread over 350 km²)

23 Km

15 Km

Land Bank

0.3

0.9

1.3

1.9

0.80.7

VGV* - Residential Projects

37% within theSFH Limit

5% 15% 22% 32% 14% 12%

Land Bank

Under 100 100 to 200 200 to 350 350 to 500 500 to 1,000 Over 1,000

R$ 000 per unit


Lagoa Marapendi

Barra (RJ)450 m

Santos

LOTE 27/RJ

São Vicente

Baixada Santista

Itaguaré

Península de São Lourenço

Bertioga

Land Bank Highlights

Marginal Pinheiros

Parque Burle Marx

Marginal Tietê

Parque do Piqueri

Panamby

Tatuapé


Shopping Jardim Sul

1.5 km²

Jardim Sul


MASP

Av. Paulista

Paulista


Vila Olímpia

Av. Juscelino Kubitschek

Av. Faria Lima

Marginal Pinheiros

Novo Shopping Center Iguatemi


Expected Launchings

1,2

2007

1,8

2,0

2008

1,5

1,7

2009

1,9

2010 +

Potential Land Acquisitions

VGV*

Forecasted VGV based on:“In-house” land bankActual sales priceNo monetary readjustments for units installments


Forecasted launchings in planning:Permits and approvalsProduct designing and researching

Units up to R$ 100,000 Units over R$ 100,000

Residential (Horizontal and Vertical) and Lots

Residential, Commercial, Lots

Own Selling Structure Third-Party Brokers

Construction and Consumer Financing from Launching

Construction and Consumer Financing after Keys

18 to 24-month Cycle 36-month Cycle

Own Construction Structure Third-Party Construction

Acquisition of Land in Cash/Swaps

Acquisition of Land in Swaps

Business Model

What

Where

Construction

Sales

Funding

Returns

Acquisitions

Comfortable Cash Position

2007 2008 2009 2010

Cash Position

Enough to finance growth

Model: Leverage and Swap

IPO Proceedings

80% Working Capital

20% Land Acquisition

(42.5)ACCOUNTS PAYABLE (LAND) –LONG

(28.5)DEBT - LONG

319.8NET CASH POSITION

19.3CASH POSITION PRE – IPO

454.0IPO PROCEEDINGS, NET

(12.4)DEBT – SHORT

390.8CASH POSITION POST – IPO

(54.9)CASH INFLOW (OUTFLOW) –1H07

(15.2)ACCOUNTS PAYABLE (LAND) –SHORT

R$ million

R$ million

NUMBERS

500

71

453

2006Total

Cassis

29

Viveiro Marilia Vogt

58

Águasde

Março

44

Ventura Corporate

Tower(phase 2)

+10%

CristaisDa

Terra

200

Total

97

Fotografia

VGV*

Launchings


170

87

171

-1%

Total2T072006 Total

83

1T07

Contracted Sales


441

187

414

162

18

488

693

Units for Sale

Units under construction

Pre-construction stage

Ready Units

1Q07 Launchings 2Q07Sales

49.5

85.6

+73%

10.1

20.4

+102%

Net Operating Revenues* Gross Income*

Financial

1H06 1H07 1H06 1H07* All Figures in R$ million

19.8

22.4

25.6

5.8 p.p.

Gross Margin (%) Addressing the Margin

CCDI Other

100 100Sales

15 0Land

50 50Construction

35 35Gross Income

100 85Revenues

35% 41%Gross Margin

6 p.p.1Q072Q06 2Q07

Financial

+43%

192.1

274.7

204.6

147.7

44.4

70.1

Revenues to be Recognized*

23.0

25.5

2.5 p.p.

Backlog Margin (%)

Financial

Costs

Results

* All Figures in R$ million

2Q06 2Q07 2Q06 2Q07

2.7

2Q06

2.8

2Q07

+3%

Net Income*

4.0

1H06-0.8

1H07

-120%

EBITDA*

Recognition of R$27.2MM in IPO-related expenses in the Fist Half of 2007

SG&A growth due to forecasted increased operations for the next periods

* All Figures in R$ million

Financial

CONTACT INFORMATION

ROBERTO PERRONI – CEOPAULO ROBERTO MAZZALI – CFO, IROFERNANDO BERGAMIN – INVESTOR RELATIONS

RUA FUNCHAL 160 – 9 ANDAR – 04551-903 – SÃO PAULO – BRAZILTEL: 5511-3841-5880/FAX: 5511-3841-5761EMAILS: [email protected] / [email protected]: www.camargocorrea-ccdi.com.br/ri

LOW INCOME

OPERATIONS

HM Engenharia e Construções Acquisition

The RationaleStarting operations in the Lower Income segment with scaleSpeed up the acquisition of know-howBe a first-mover to a huge potential marketUse the most adequate business model for the segment

The Chosen WayAcquisition of HM Engenharia e Construções

The Reasons for HMVast, proven track-recordUnique building technologyConsolidated Land BankStrong partnership in place with Caixa Econômica Federal and other financial institutionsFocus on the country-side of São Paulo (among the richest in Brazil)

The DealR$ 2.5 million paid to HM’s ShareholdersR$ 48.1 million capitalized in the companyR$ 8.1 million to be paid for HM’s Shareholders (as of March, 2007) as dividendsR$ 40.0 million for working capital and land acquisitionTotal Company valuation: R$ 60 million

The OptionCCDI has an option to acquire another 30% of HM early in 2009 (thus CCDI will potentially hold 81% of the Company)Strike price: same share price of acquisition, with adjustments (higher or lower) depending on operational (launchings) and financial (net margin) indicators

The OperationsHM’s Shareholders are shareholders of the new Company (proportionally)CCDI will indicate CFO, Chief Operations OfficerHM will adopt CCDI’s Corporate Governance and Reporting Practices

HM Engenharia e Construções Acquisition

AraçatubaSão José do Rio PretoVotuporangaCatanduva

BarretosRibeirão PretoFrancaCatanduva

CampinasSorocabaJundiaíPiracicaba

BauruMariliaBotucatuAssisSão Carlos

São Paulo

Meet HM Engenharia e Construções

75,144

11,543

86,687

Units Built

Units from R$ 40,000 up to R$ 100,000

Residential (Horizontal and Vertical) and Lots

Own Selling Structure

Own Construction Structure

State of São Paulo

2007YTD Launchings: R$ 20MM

2006 N.O. Revenues: R$ 65MM2006 Net Income: R$ 9MM

Meet HM Engenharia e Construções

Low Income TotalEconomic(R$100k-200k)

Some Projects

20071002 apresentacao mz real estate eng

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