3Q10 Institutional Presentation

Disclaimer
This material is a presentation of general background information about JHSF Participações S.A. (“JHSF") as of the date of this
presentation. Information contained herein has been summarized and does not purport to be complete. This presentation shall
not be considered investment advice to potential investors.
This presentation contains statements and information that are forward-looking within the meaning of the U.S. federal
securities laws. Such forward-looking statements and information are inherently uncertain, are predictions only and cannot
assure JHSF's future performance. Investors are cautioned that any such forward-looking statements and information are
subject to many risks and uncertainties relating to, among other things, the operations and business of JHSF and its
subsidiaries. As a result of such risks and uncertainties, the actual results of JHSF and its subsidiaries may be materially
different from any future result expressed or implied in the forward-looking statements or information contained herein.
Although JHSF believes that the expectations and assumptions reflected in the forward-looking statements and information
contained herein are reasonable and have been based on data currently available to its officers and directors, JHSF cannot
guarantee future results or events. JHSF assumes any commitment or obligation to update or revise any of such forwardlooking statement or information, except as required by law.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any
securities. Neither this presentation nor anything contained herein shall form the basis for any contract or commitment
whatsoever.
2
JHSF
Business Overview
JHSF at a Glance
Leadership Across all Business Segments
Diversification…
Real Estate
Development
… with Leadership
Real Estate Development
Undisputable leadership in high end as well as large-scale
mixed use projects in Brazil
Successful expansion to Northeast/North regions
Sizeable land bank of R$13.2 billion (20.3 million sq.m)
Residential and commercial
Shopping Malls
Shopping Malls
Portfolio of unique shopping
malls
Leading high-end presence – Shopping Cidade Jardim – 100%
occupancy
Current GLA of 33,000 sq.m to reach 205,000 sq.m
Geographic expansion to North and Northeast
High-End Hotels
High-End Hotels
Fasano Hotel, leading highend brand
4
Brand recognition, anchoring mixed-use projects
High occupancy rates
Selected expansion: Boa Vista, Las Piedras, Salvador e
Trancoso
Ownership Structure
Corporate Structure
F.A.
Participações S.A. *
50.0 %
JHSF Par S.A.
63.7 %
JAN
Participações S.A. **
50.0 %
Fábio
Chimenti
Auriemo
8.8 %
* Controlled by Fábio Chimenti Auriemo
** Controlled by José Auriemo Neto
José
Auriemo
Neto
8.8 %
Free
Float
18.7 %
JHSF Participações S.A.
426,374,825 shares
Real Estate
Developments
5
Shopping
Malls
Office
Rentals
Hotels
Management and Corporate Governance
Board of Directors
Fábio
Chimenti
Auriemo(1)
José
Auriemo
Neto
Claudio
Bonomi
Eduardo S.
Camara
Luiz G.
Belluzzo
Richard
Barczinski
President
Member
Member
Member
Member
Member
20 years of experience on the
industry on average
Executive Officers
Sound Corporate Governance
Practices
José Auriemo Neto
CEO
Novo Mercado
Only Common Shares
Eduardo S. Camara
Vice President and IRO
100% Tag Along
Auditing Commitee
Ethics Code
Share Trading Policy
Real Estate
Develop.
(1)
6
Shopping
Malls
Founder
Engineer/
Servies
Office
Rentals
Hotels
New
Projects
Disclosure Policy
Finance
Sponsorship IBGC
History – Ability to Anticipate Market Trends and Innovation
New residential clusters in
the city of São Paulo
(Perdizes, Pinheiros, Itaim)
One of the first class A
commercial towers in
Brazil
Metropolitan
First large scale and
mixed use project in the
Brazilian market
Parque Cidade
Jardim
Platinum
1980 1997
American
Loft
First loft
launched in the
Brazilian market
7
2000
2001
Shopping Metrô
Santa Cruz
First shopping mall
fully integrated to a
subway station in
Brazil
2004
Paris
Milestone in
the high-end
residential
towers
First master planned
community designed
as a second home
solution
Fazenda Boa Vista
2006
2007
Fasano Hotel
Acquisition of
Fasano Hotels
company
IPO
History – Ability to Anticipate Market Trends and Innovation
Recycling Strategy
Class A commercial
towers of Cidade
Jardim Project
Corporate Center
High-end project in one
of the last large areas of
the region
Praça Vila Nova
Construction work
started: Shopping
Metrô Tucuruvi and
Shopping Bela Vista
Shoppings
2008
Shopping
Cidade Jardim
First mall with open
areas, with natural
light and all stores
facing the garden
8
Sale
Shopping Metrô
Santa Cruz
Edif. Nacoes
2009 - 2010
Horto Bela Vista
Parque Cidade
Jardim
Fazenda Boa Vista
First large scale
and mixed use
project of Salvador
8 towers delivered
out of the total of 9
residential towers
158 units delivered
in the first phase
Sale of
Metropolitan an
Platinum
Towers to a real
estate fund
JHSF
High-End Market
High-End Market
Wealth - Latin America’s HNWIs*
USD Trillion
6.7
6.2
5.8
5.1
2006
2007
2008
2009
Latin America’s HNWIs = 500 thousand people in 2009
* HNWI = High Net Worth Individual
Source: Cap Gemini / Merrill Lynch
10
High-End Market
Brazil - Thousand of HNWIs *
147
143
109
2005
131
120
2006
2007
2008
2009
87% of Brazilian HNWIs are Ultra-HNWIs (> USD30 million in assets)
* HNWI = High Net Worth Individual
Source: Cap Gemini / Merrill Lynch
11
High-End Market
Luxury Goods Market in Brazil*
R$ billion
15.1
12.3
11.1
9.9
8.4
2006
2007
2008
2009
2010
Brazilian luxury market grew 15.8% p.a. for 5 years
* Does not include real estate, aviation and boats, among others
Source: MCF / GfK Brasil
12
High-End Market
Benchmark of Brands
International Brands
National Brands
Louis Vuitton – 18%
Fasano – 14%
Hermès – 12%
Osklen – 13%
Giorgio Armani – 5%
H. Stern – 9%
Marc Jacobs – 5%
Daslu – 5%
Chanel – 3%
Gucci – 3%
LVMH Group – 3%
Tiffany & Co. – 3%
92% of benchmark brands are involved
with one of JHSF’s businesses
Source: MCF / GfK Brasil and JHSF
13
JHSF
Real Estate Development
Strategy – Real Estate Development
Business Model - Cash Flow Generation - JHSF
• Focus on High Income Segment / Large Scale
• Main player
• Capability and Expertise
• Clientele
• Favorable competitive environment due to the focus of competitors in low income
• Projects with attractive cash flow since the beginning
• Differentiated margins
• Development in phases and price appreciation
• Benefiting next phases of launched projects: 3.4 million square meters at
Fazenda Boa Vista , with recent transactions above R$ 700 per sq.m and 14
towers of Horto Bela Vista
15
Real Estate Development – Fazenda Boa Vista Case
Development approved by the market
with extensive landbank with high added value
16
Real Estate Development –Fazenda Boa Vista Case
Development approved by the market with landbank with high added value
•
3 years of operation, 2 phases launched and PSV of R$708 million.
•
Single family homes, Villas Fasano, Estâncias and Lots.
•
76% sold, 158 units delivered with all infrastructure.
•
Amenities delivered: golf course, equestrian center, tennis and multi-sports courts, hotel pool, restaurant, concierge,
kids farm, among others.
•
To follow: Hotel Fasano , second golf course, design by Arnold Palmer, among others.
•
Appreciation of 400% in the square meter sold, from R$150/sq.m to R$750/sq.m.
Extensive landbank for next phases
•
Last acquisition on October 2010: 1,8 million square meters for R$17.5 million, or R$9.7/sq.m.
•
Total area of 7.8 million represent 3.4 million of net area for sale.
•
Assuming only sales of land (Estancias and Lots) for the next phases, in range of the current prices from R$550/sq.m
to R$750/sq.m, represents potential sales value from R$1.9 to 2.6 billion with margins in the range
of 75 - 80%.
•
17
Launching of a new phase in 4Q10.
Real Estate Development – Launched Projects
PARQUE CIDADE JARDIM
PSV - R$914 MM
• 9 residential towers
• Private area of 77 thous. sq.m
• Largest real estate development
• Class A and environmental
in São Paulo
certification
• 8 towers delivered
• Construction work at fast pace
• 1 towers to be delivered in 2010
• Integrated mall and residential
• Total area of 80 thousand sq.m
apartments
• Integrated to shopping mall and
office towers
18
CIDADE JARDIM
CORPORATE CENTER
PSV – R$761 MM
Real Estate Development – Launched Projects
HORTO BELA VISTA
PSV – R$471 MM
PRAÇA VILA NOVA
PSV – R$223 MM
BENEDITO LAPIN
PSV – R$71 MM
• First large scale and mixed use project
• Located at on the last large areas in
• High-end income development in
of Salvador - BA
the region, next to Parque Ibirapuera
an excelent location Itaim - SP
• 19 residential towers, 3 office towers
• High-End apartments ranging from
• Apartaments from 123sq.m to 373
and 1 residential with hotel services
430 sq.m and 520 sq.m and penthouses
sq.m
• 9 towers launched – phases 1 and 2
of 1,200 sq.m
• Modern architecture with glass
• 10 thousand sq.m park, school, sports
• High quality spa, fitness center,
club and spa
library, wine cellar, offices and
• Construction costs financing of
conference room, indoor (heated) and
Santander – R$110 million
outdoor swimming pool
• Total land area of 340 thousand sq.m /
• Total land area of 5 thousand sq.m
Fully integrated to shopping mall
• Construction work started on Sept.-09
• Construction work started on Sept.-09
façades, vertical gardens and
spacious balconies
• Completed spa, gourmet lounge,
wireless network, technology
applied to secutiry
• Total land area of 1.7 thous. sq.m
• Launched May/10
19
Real Estate Development – Launched Projects
Our launched projects to approx. 83% sold,
Accum. Contracted Sales by Project
R$MM and % sold
2619.7
898.3
539.7
549.2
352.2
Parque
Cidade
Jardim
% sold
20
98%
223.0
Fazenda Boa
Cidade
Horto Bela Praça Vila
Vista (Phase
Jardim
Vista (Phase
Nova
1 and 2)
Corporate
1 and 2)
76%
73%
73%
100%
57.3
Benedito
Lapin
81%
Total
83%
Real Estate Development – Launched Projects
and accounts receivable + inventory at market price reached R$1,575.4 million
Accounts Receivables + Inventory at Maket Price
Launched Projects*
R$MM
1575.4
364.0
463.0
430.2
151.1
108.9
Parque
Cidade
Jardim
Fazenda Boa
Cidade
Vista
Jardim
(Phases 1
Corporate
and 2)
Horto Bela
Vista
(Phases 1
and 2)
Praça Vila
Nova
58.2
Benedito
Lapin
Total
(*) Launched Projects: At the end of September 2010, the net operational cash to be realized of the launched projects
(sold and inventory) is R$871 million and net result to be realized of the same projects is R$581 million.
21
Real Estate Developments: Land Bank
HORTO BELA VISTA
PSV: R$762 MM
PARQUE CATARINA
PSV: R$7.9 billion
22
PONTA NEGRA
PSV: R$341 MM
FAZENDA BOA VISTA
PSV: R$ 3.2 billion
LAS PIEDRAS
PSV: USD110 MM
VITRA
PSV: R$110 MM
JHSF
Recurring Income Business
Strategy – Recurring Income Business
Business Model - Cash Flow Generation - JHSF
• Recurring Income Business
• Preference for the developer view x owner view
• Expertise on the development of high quality projects
• Two drivers of shareholder value creation in the segment:
• Cash flow and results from real estate rental
• Value creation
• Appreciation as a result from the sale of successful development
• Expressive profits generation
• Options for exit strategy
• Real estate funds, structured transactions, etc
• Strategic assets
• Business platform
24
Recurring Income Business
Shopping Cidade Jardim
GLA - 33,000 sq.m - 100% JHSF
Recent Developments
25
•
36% growth 9M10 x 9M09 on sales reported by tenants
•
Sale of 2 office towers (Metropolitan an Platinum) for R$158.7 million
•
Sale of 2 properties for R$311.2 million (Shopping Metro Santa Cruz and J.M. Pinheiro Neto Tower)
•
Opening of the expansion of Shopping Cidade Jardim
•
Opening of SPA Cidade Jardim
Recurring Income Business
Adjusted Gross Revenues1
R$MM
Adjusted EBITDA2
R$MM
31.4
46.3
26.9
38.3
13.5
3Q09 Proforma
9.3
16.3
3Q10
9M09 Proforma
9M10
3Q09 Proforma
11.2
3Q10
9M09 Proforma
9M10
(1) Adjusted Gross Revenue includes the revenue from the rent of a GLA of 2,490 sq.m occupied by our headquarters and also the rent revenue from Hermes
store (related companies)
(2) EBITDA of malls and office rentals in operation, including the rent from related companies and excluding extraordinary items
Pro-forma excludes results from assets sold during 2009
26
Recurring Income Business
Greenfield Projects
Shopping Metrô Tucuruvi (São Paulo – SP)
Opening: Second Half/2011
GLA: 52,895 sq.m in 3 phases
Capex, net: R$142.4 million
NOI (3rd year): R$56.7 million
IRR: 32.0% p.a.
% Leased: 88% (1st phase)
% JHSF: 100%
27
Recurring Income Business
Greenfield Projects
Shopping Horto Bela Vista (Salvador – BA)
Opening: First Half/2012
GLA: 72,978 sq.m (in 3 phases)
Capex, net: R$200.1 million
NOI (3rd year): R$59.8 million
IRR: 28.3% p.a.
% Leased: 80% (1st phase)
% JHSF: 51%
28
Recurring Income Business
Greenfield Projects
Shopping Ponta Negra (Manaus – AM)
Opening: Second Half/2012
GLA: 46,298 sq.m (in 3 phases)
Capex,net: R$ 151.0 million
NOI (3rd year): R$47.8 million
IRR: 30.2% p.a.
% Leased: 85% (1st phase)
% JHSF: 80%
29
JHSF
Fasano Hotels
High End Hotels: Fasano
– Fasano: best known brand of Brazilian high end hotels
– 14th best hotel of the world according to Condé Nast Traveller Hot List
– Leading Small Hotels of the World member
– Stand alone operations: Rio de Janeiro and São Paulo
– Anchor of JHSF’s developments: Boa Vista and Punta del Este
– Selected expansion: Trancoso and Salvador
São Paulo
Rio de Janeiro
Hotel Fasano adds value to JHSF’s high end real estate developments
31
JHSF
Financial Highlights
Financial Highlights
EBITDA grew 56% in 9M10...
EBITDA
R$MM
259.9
240.1
130.2
88.2
57.0
2006
56.4
2007
2008
9M10 EBITDA excludes extraordinary items
9M09 Pro-Forma excludes results from assets sold in 2009
33
2009 9M09 Pro-forma 9M10
Financial Highlights
...as well as the net income presented an increase of 435% in the 9M10
Net Income
R$MM
146.8
52.8
148.2
53.0
53.3
9.9
2006
2007
2008
9M10 net income excludes extraordinary items
9M09 Pro-forma excludes results from assets sold in 2009
34
2009 9M09 Pro-forma 9M10
Financial Highlights
Cash and equivalents increased substantially, strengthening our
capital structure...
Cash and Equivalents
R$MM
680.2
324.9
3Q09
3Q10
1
(1) Cash and equivalents are presented on a pro-forma basis and include R$158.7 million referring to the sale of Metropolitan and Platinum
towers, which was concluded on October 2010.
35
Financial Highlights
... and net debt turned into net cash
Net Cash (Debt)*
R$MM
43.4
3Q09
3Q10
(75.8)
*Net Cash (Debt) = Bank Debt + Debentures – Cash
(1) Net Cash (Debt) is presented on a pro-forma basis and includes R$158.7 million referring to the sale
of Metropolitan and Platinum towers, which was concluded on October 2010.
36
JHSF
Outlook
Outlook 2010
Real Estate Development
• Substantial growth of real estate launchings
Horto Bela Vista (new phase) – already done
Benedito Lapin – already done
Fazenda Boa Vista (new phase)
Ponta Negra
Parque Catarina
Vitra
• Acceleration of revenue recognition (PoC), due to the increase of
pace in the construction work of:
Cidade Jardim Corporate Center
Praça Vila Nova
Horto Bela Vista
38
Outlook 2010
Shopping Centers
• Fast pace of construction work of Shopping Bela Vista (Salvador –
BA), Shopping Metrô Tucuruvi (São Paulo – SP) and Shopping
Ponta Negra (Manaus – AM)
Hotels
• New operations opening: Fazenda Boa Vista and Las Piedras
39
JHSF
Financial Statements
Consolidated Financial Statements
Consolidated Financial Statements
Balance Sheet
in Thousand Reais
ASSETS
Current
Cash and equivalents
Account receivables
Real estate to be sold
Miscelaneous credits
Income tax and social contribution to recover
Deferred income tax and social contribution
Sales expense backlog
Non_current Assets
Long Term Assets
Account receivables
Miscelaneous credits
Real estate to be sold
Deferred income tax and social contribution
Related Parties
Permanent Assets
Intangible
Property, plant and equipment
Deferred charges
Total Non-Current Assets
Total Assets
41
9/30/2010
521,513
283,010
165,502
16,627
9,226
9,140
17,158
1,022,176
59,824
38,097
186,280
2,074
4,100
290,375
166,536
495,953
23,432
685,921
976,297
1,998,473
6/30/2010
324,913
257,234
163,485
14,138
6,122
9,869
17,229
792,990
60,904
37,225
176,485
1,701
4,100
280,415
166,617
470,816
24,400
661,834
942,248
1,735,239
Consolidated Financial Statements
Consolidated Financial Statements
Balance Sheet
in Thousand Reais
LIABILITIES
Current
Suppliers
Loans, financings and debentures
Labor and tax liabilites
Deferred income taxes and social contribution
Creditors of properties bought
Advance of clients
Other
Non-current liabilities
Long term liabilities
Labor and tax liabilities
Loans, financings and debentures
Related parties
Creditors of properties bought
Other
Miscelaneous risk provisions
Total non-current liabilities
Minority interest
Stockholders' equity
Paid-in capital
Buy-back shares
Profit reserve
Capital reserve
Adjustment of book value appraisal
Total liabilities and stockeholders' equity
42
9/30/2010
6/30/2010
37,937
126,119
16,486
16,030
40,213
162,324
1,259
400,368
4,723
510,686
1,723
83,542
1,017
3,247
604,937
604,937
10,525
705,782
(483)
278,743
1,993
(3,392)
982,643
1,998,473
29,975
111,105
11,999
18,246
33,300
177,268
1,541
383,435
4,785
289,627
1,723
80,976
1,017
3,047
381,175
381,175
10,390
705,782
(483)
254,352
1,613
(1,025)
960,238
1,735,239
Consolidated Financial Statements
Consolidated Financial Statements
Consolidated Income Statement
in Thousand of Reais
3Q10
R$ Thous.
Gross Revenues
%
183,910
R$ Thous.
%
139,891
1
Non-Revised
R$ Thous.
%
131,718
Taxes on Revenues
(11,321)
Net Revenue
172,590
100.0%
130,861
100.0%
123,154
100.0%
(111,129)
-64.4%
(82,712)
-63.2%
(79,213)
-64.3%
61,461
35.6%
48,149
36.8%
43,942
35.7%
(33,689)
-19.5%
(29,042)
-22.2%
(28,791)
-23.4%
Selling
(11,781)
-6.8%
(9,505)
-7.3%
(9,495)
-7.7%
Administrative
(13,256)
-7.7%
(14,745)
-11.3%
(14,538)
-11.8%
Other
(8,652)
-5.0%
(4,792)
-3.7%
(4,759)
-3.9%
EBITDA
36,290
21.0%
27,813
21.3%
22,720
18.4%
Adjusted EBITDA2
38,765
22.5%
27,813
21.3%
22,720
18.4%
Operating Income
27,772
16.1%
19,107
14.6%
15,151
12.3%
Net Financial Result
2,135
1.2%
(1,682)
-1.3%
(2,157)
-1.8%
Income before Income Taxes and Social Contribution
29,907
17.3%
17,425
13.3%
12,994
10.6%
Income Taxes and Social Contribution
(5,192)
-3.0%
(3,218)
-2.5%
(2,250)
-1.8%
Income before Minority Interest
24,715
14.3%
14,207
10.9%
10,743
8.7%
Operating Costs
Gross Profit
Operational Expenses
Minority Interest
(135)
(9,030)
-0.1%
(162)
(8,564)
-0.1%
(13)
0.0%
Net Result
24,580
14.2%
14,045
10.7%
10,730
8.7%
Adjusted Net Income2
27,055
15.7%
14,045
10.7%
10,730
8.7%
(1) Excludes results from assets sold in 2009
(2) Adjusted Net Income and Adjusted EBITDA exclude extraordinary items
43
3Q09 Pro-forma
3Q09
Consolidated Financial Statements
Consolidated Financial Statements
Consolidated Income Statement
in Thousand of Reais
9M10
R$ Thous.
%
R$ Thous.
%
1
Non-Revised
R$ Thous.
%
Gross Revenues
455,658
382,234
356,782
Taxes on Revenues
(29,417)
(20,624)
(19,075)
Net Revenue
426,242
100.0%
361,610
100.0%
337,707
100.0%
(274,581)
-64.4%
(234,656)
-64.9%
(224,011)
-66.3%
Gross Profit
151,661
35.6%
126,954
35.1%
113,696
33.7%
Operational Expenses
(91,457)
-21.5%
(84,013)
-23.2%
(83,053)
-24.6%
Selling
(33,979)
-8.0%
(31,749)
-8.8%
(31,684)
-9.4%
Administrative
(41,951)
-9.8%
(42,918)
-11.9%
(42,084)
-12.5%
Other
(15,527)
-3.6%
(9,346)
-2.6%
(9,285)
-2.7%
EBITDA
85,757
20.1%
72,039
19.9%
56,407
16.7%
Adjusted EBITDA2
88,232
20.7%
72,039
19.9%
56,407
16.7%
Operating Income
60,203
14.1%
42,941
11.9%
30,644
9.1%
-0.2%
(11,030)
-3.1%
(11,897)
-3.5%
Operating Costs
Net Financial Result
(881)
Income before Income Taxes and Social Contribution
59,322
13.9%
31,911
8.8%
18,747
5.6%
Income Taxes and Social Contribution
(8,269)
-1.9%
(11,260)
-3.1%
(8,491)
-2.5%
Income before Minority Interest
51,054
12.0%
20,651
5.7%
10,256
3.0%
Minority Interest
(558)
-0.1%
(799)
-0.2%
(345)
-0.1%
Net Result
50,496
11.8%
19,852
5.5%
9,911
2.9%
Adjusted Net Income2
52,971
12.4%
19,852
5.5%
9,911
2.9%
(1) Excludes results from assets sold in 2009
(2) Adjusted Net Income and Adjusted EBITDA exclude extraordinary items
44
9M09 Pro-forma
9M09
Consolidated Financial Statements
Consolidated Financial Statements
Summary of Income Statement by Business Division
Third Quarter of 2010
In Thousand of Reais
(Non-Revised)
Real Estate
Development
Gross Revenues
152,127
Taxes on Gross Revenues
(6,004)
Malls and Office
Hotels
Holding and
1
Consolidated
2
Rentals
Others
15,741
(1,768)
6,505
(437)
9,537
183,910
(3,112)
(11,321)
Net Revenue
146,123
13,973
6,068
6,425
172,590
Operating Costs
(92,064)
(10,637)
(3,829)
(4,599)
(111,129)
54,059
3,336
2,239
1,827
61,461
37.0%
23.9%
36.9%
28.4%
35.6%
(19,684)
(2,090)
(1,748)
(10,167)
(33,689)
Selling
(9,124)
(1,514)
(346)
(796)
(11,781)
Administrative
(4,277)
(319)
(1,081)
(7,579)
(13,256)
Other
(6,283)
(257)
(321)
(1,792)
(8,652)
Gross Profit
Gross Margin (%)
Operational Expenses
Operating Income
34,376
1,246
491
(8,341)
27,772
EBITDA
37,292
6,000
1,117
(8,119)
36,290
37,292
11,197
1,117
(10,841)
38,765
7,533
(1,876)
Income before Income Taxes and Social Contribution
41,909
(630)
Income Taxes and Social Contribution
(5,238)
Income before Minority Interest
36,671
3
Adjusted EBITDA
Net Financial Result
Minority Interest / Reversion of Interest on Own Capital
(0)
36,671
Net Result (Loss)
3
Adjusted Net Income
36,671
(6)
(637)
0
(637)
4,561
(46)
(3,477)
2,135
445
(11,817)
29,907
(55)
390
(134)
107
(11,710)
0
(5,192)
24,715
(135)
256
(11,710)
24,580
256
(14,433)
27,055
(1) Adjusted Net Income and Adjusted EBITDA of Malls and Office Rentals consider the results of assets in operation and adjustments of sales with controlled companies
(2) Adjusted Net Income and Adjusted EBITDA of Holding and Others consider the adjustments of revenues with controlled companies
(3) Adjusted Net Income and Adjusted EBITDA exclude extraordinary items
45
Consolidated Financial Statements
Consolidated Financial Statements
Summary of Income Statement by Business Division
First Nine Months of 2010
In Thousand of Reais
(Non-Revised)
Real Estate
Development
Gross Revenues
Malls and Office
Rentals
370,826
Hotels
Holding and
1
Consolidated
2
Others
44,502
19,511
20,819
455,658
Taxes on Gross Revenues
(16,517)
(4,885)
(1,294)
(6,721)
(29,417)
Net Revenue
354,310
39,617
18,218
14,098
426,242
(227,392)
(27,236)
(11,304)
(8,649)
(274,581)
126,917
12,380
6,913
5,450
151,661
Operating Costs
Gross Profit
35.8%
31.3%
37.9%
38.7%
35.6%
(56,583)
(5,191)
(4,940)
(24,743)
(91,457)
Selling
(28,894)
(2,146)
(1,169)
(1,771)
(33,979)
Administrative
(16,954)
(1,929)
(3,095)
(19,973)
(41,951)
Other
(10,736)
(1,116)
(676)
(2,999)
(15,527)
Operating Income
70,334
7,189
1,974
(19,293)
60,203
EBITDA
79,194
21,042
3,838
(18,318)
85,757
Adjusted EBITDA
79,194
31,439
3,838
(26,240)
88,232
Net Financial Result
13,126
(7,478)
Income before Income Taxes and Social Contribution
83,460
(289)
Income Taxes and Social Contribution
(8,387)
374
Income before Minority Interest
75,074
85
Gross Margin (%)
Operational Expenses
3
Minority Interest / Reversion of Interest on Own Capital
Net Result (Loss)
3
Adjusted Net Income
(0)
(0)
(206)
1,768
(147)
1,621
(558)
(6,324)
(25,617)
(110)
(25,727)
(881)
59,322
(8,269)
51,054
0
(559)
75,073
85
1,064
(25,727)
50,495
75,073
10,482
1,064
(33,649)
52,970
(1) Adjusted Net Income and Adjusted EBITDA of Malls and Office Rentals consider the results of assets in operation and adjustments of sales with controlled
companies
(2) Adjusted Net Income and Adjusted EBITDA of Holding and Others consider the adjustments of revenues with controlled companies
(3) Adjusted Net Income and Adjusted EBITDA exclude extraordinary items
46
Consolidated Financial Statements
Consolidated Financial Statements
Summary of Cash Flow Statement
in thousand of Reais
3Q10
3Q09
Operational Cash Flow
Net Income
24,580
14,045
Depreciation, Amortization and other
17,037
14,832
Total
41,617
28,877
9M10
50,496
56,646
107,141
9M09
19,852
49,920
69,772
Working Capital Variations
Account Receivable
Real Estate to be Sold
Recoverable Tax and Contribution
Suppliers
Clients Advances
Tax and Personnel Obligations
Other
Cash Flow From Operation
Capital Expenditures
Financial Inflow (Outflow)
Dividends and Interest on Own Capital Paid
Cash Surplus (Deficit)
47
(24,696)
(11,812)
(3,105)
7,962
(14,945)
4,425
(5,146)
(20,345)
(3,688)
(1,204)
3,994
2,377
(2,126)
(2,450)
35,224
(22,302)
1,674
2,958
(18,062)
(8,472)
(6,306)
(24,757)
39,968
(5,265)
4,052
53,815
(5,516)
(14,725)
(5,701)
5,435
91,856
117,343
(14,188)
30,993
(60,109)
168,416
(35,053)
(8,446)
(45,000)
(74,803)
(45,000)
(22,761)
125,361
28,843
(30,787)
233,087
196,599