Apresentação Institucional - Março de 2004

1. BRAZIL REALTY
March 17th, 2004
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2. THE COMPANY BRAZIL REALTY
§ Brazil Realty acts in a huge variety of segments, from
residential buildings to commercial and shopping malls Cyrela / Brazil Realty group
developments, being one of the most diversified has built more than 2
million sqm since its
companies of the Brazilian real estate market. start
In 2003 Brazil Realty was
§ Brazil Realty acts in all stages of the process, from land awarded with 1st places
acquisition to market and property management. for the “residential
launch of the year” and
“commercial
development” according
§ Brazil Realty is recognized for the high quality of its to Prêmio Folha
products and active marketing strategies.
Office rents revenues is
enough to support
§ A solid financial position generates conditions to adjust to company’s fixed costs
economic and market changes as well as to take
advantage of buying opportunities that occurs in crisis.
§ Brazil Realty focus on most-profitable market niches in
São Paulo, Santo Andre, Campinas and Rio de Janeiro.
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2

3. HISTORY BRAZIL REALTY
Brazil Realty redefines
its focus to residential
developments
Total assets reach R$ 471.2
million. Portfolio of 64 proprieties. 2003
Expansion to Rio de Janeiro
Brazil Realty issues 2002
US$ 75 million in 8- Meliá Campinas
year Eurobonds starts regional 2001
expansion Cyrela acquires IRSA’s
2000 stake in the company
1999 JK Financial Center
IRSA and Mr. Horn
capitalize Brazil development is
Realty with US$30 1997 completed. REIT Brazil
million launched
US$ 10 million capital
1996 increase
1994
Brazil Realty
1962 Mr. Elie Horn startsreal estate
US$80.5 million IPO.
Portfolio of 9 3
business in Brazil proprieties
3

4. GROWING ELEMENTS BRAZIL REALTY
Economy of Scale /
In-house sales team
Proven Track Record
Solid Financial
Professional Position / Own
Managing Team Capital
Land Banking
/ Solid Clients Database
Portfolio of
Properties
Construction Certify
Modern ISO 9000
Managing Tools 4
4

5. GROWING ESTRATEGY BRAZIL REALTY
Regional Expansion
Product Partnerships with
Diversification other developers
Alternative
New Financial Models Access to
Capital Market
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5

6. PORTFOLIO BRAZIL REALTY
1) Residential
2) Offices
3) Shopping Malls and Exposition Trade Pavillion
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6

7. 1) RESIDENTIAL PORTFOLIO BRAZIL REALTY
§ Brand is associated to top-brand quality
products
§ Innovative products and marketing
strategies
§ Prime locations
§ Administration services
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7

8. 1) RESIDENCIAL PORTFOLIO BRAZIL REALTY
MARKET
• Brazilian housing shortage:
– 5,3 million houses. Fundação João Pinheiro, 2001
– 6,7 million houses. SECOVI, 2000
• Brazil Realty’s markets:
– 1,1 million in São Paulo. EMBRAESP, 2000
– 0,5 million in Rio de Janeiro. EMBRAESP, 2000
• Critical factors:
Cyrela / Brazil Realty
– Inflation Group’s Market Share
– Interest rates in São Paulo: 6%
– Long term credits
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8

9. 1) RESIDENTIAL PORTFOLIO BRAZIL REALTY
MARKET
Average price of residential properties in US$/sqm x GDP in
billion US$ (source: Sinduscon / MCM)
900
800
700
600
500
400
300
200
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Price (US$/sqm) GDP (Bi US$)
9
9

10. 1) RESIDENTIAL PORTFOLIO BRAZIL REALTY
PARTNERSHIP STRUCTURE
PARTNERS IN
PARTNERS IN BRAZIL
BRAZIL PARNERS IN
PARNERS IN
DEVELOPMENT
DEVELOPMENT REALTY
REALTY DEVELOPMENT
DEVELOPMENT
(A)
(A) (B)
(B)
SPECIFIC
SPECIFIC SPECIFIC
SPECIFIC
PURPOSE
PURPOSE PURPOSE
PURPOSE
COMPANY (A)
COMPANY (A) COMPANY (B)
COMPANY (B)
DEVEPLOPMENT (A)
DEVEPLOPMENT (A) DEVELOPMENT (B)
DEVELOPMENT (B)
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11. 1) RESIDENTIAL PORTFOLIO BRAZIL REALTY
TYPICAL CASH FLOW
ws
Launch sh Inflo Last
ated Ca installment
umul
Land Acc
acquisition
Net Cash Flow
End of
+ + project
Year 0 - 1 2 3 4 5
Accumulated Cash Outflows
Construction ends
Construction
Construction
starts
acelerates
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11

12. 1) RESIDENTIAL PORTFOLIO BRAZIL REALTY
SÃO PAULO
• New developments (2003)
– Mandarim (56% B.Realty)
• Brooklin Novo
• 338 units
• Sale Volume of R$ 57 million
(R$ 32 MM B.Realty)
– A Reserva (50% B.Realty)
• Chácara Flora
• 264 units
• Sale Volume of R$ 53 million
(R$ 26,5 MM B.Realty)
– Grand Garden (50% B.Realty)
• Jardim Avelino
• 324 units
• Sale Volume of R$ 53 milhões
(R$ 26,5 MM B.Realty)
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12

13. 1) RESIDENTIAL PORTFOLIO BRAZIL REALTY
SÃO PAULO
• New developments (2003)
– Atmosfera (25% B.Realty)
• Vila Olímpia
• 220 units
• Sale Volume of R$ 68 million (R$
17MM B.Realty)
– Contemporâneo Moema (34%
B.Realty)
• Moema
• 39 units
• Sale Volume R$ 25 milhões (R$
8,5MM B.Realty)
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13

14. 1) RESIDENTIAL PORTFOLIO BRAZIL REALTY
SÃO PAULO (CYRELA /
B.REALTY GROUP)
• New developments (2004)
– 11 developments through
partnerships
– Brazil Realty’s stake in sale
volume is R$ 250 million
• Potential land banking not
used (2004)
– 6 developments through
partnerships
– Brazil Realty’s stake in sale
volume is R$ 160 million
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14

15. 1) RESIDENTIAL PORTFOLIO BRAZIL REALTY
SÃO PAULO
ÇIRAGAN
§ Jardins / Paulista Ave.
§ Site: 6.360 sqm
§ 252 unis
§ Units of 51 to 224 sqm
§ 48 office units
§ Sale Volume of R$ 80 million
§ Delivery date: April 2007
§ Architect: Itamar Berezin
§ 38% Brazil Realty’s stake
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16. 1) RESIDENTIAL PORTFOLIO BRAZIL REALTY
RIO DE JANEIRO
• New development (2003)
– Le Parc (53%)
• Barra da Tijuca
• 768 units
• Sale Volume of R$ 323 million (R$
170 MM B.Realty)
• New development (2004)
– 6 developments in partnerships
– Brazil Realty’s stake in sale volume is
R$ 140 million
• Potential land banking not used
– 4 developments in partnerships
– Brazil Realty’s stake in sale volume is
R$ 135 milhões
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16

17. 1) RESIDENTIAL PORTFOLIO BRAZIL REALTY
RIO DE JANEIRO
LE PARC
§ Barra da Tijuca
§ Land: 55.000 sqm
§ 13 buildings / 768 units
§ Sale Volume of R$ 323 million
§ Units of 100 to 350 sqm
§ Delivery date: June 2006
§ Architect: S&W / Collaço & Monteiro
§ 53% Brazil Realty’s stake
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18. 2) OFFICE PORTFOLIO BRAZIL REALTY
§ Prime location
§ Large Floorplates
§ State-of-art technology and
features
§ Top-notch quality
§ Long term tenants, large
national and multi-national
companies
§ Own property managing team
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19. 2) OFFICE PORTFOLIO BRAZIL REALTY
Occupancy and Rent Revenues History
30000 95% 95% 102%
100%
99% 24.000 (e)
25000 96% 100%
92%
98%
20000
,000 R$
15.881 96%
15000 12.266
11.400 94%
7.622 9.000
10000
92%
5000 90%
0 88%
1999 2000 2001 2002 2003 2004
Rent Values in Latin America
2004: according to data table presented ahead
35 -63%
30
-7% -36% -5%
US$ per sqm
25 -15%
20 -20%
15
10
5
0
ile
ico
il
i
a
ua
na
as
Ch
el
éx
ug
nti
Br
zu
M
ge
Ur
ne
Ar
Ve
2001 2003
source: CB Richard Ellis / Cushman Wakefield Semco Dec/03 19
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20. 2) OFFICE PORTFOLIO BRAZIL REALTY
OFFCIES Monthly Total Occupancy Value Value B.Realty
Revenues (R$) Area (sqm) R$ / 000 per sqm Stake
Nova São Paulo 429.484 12.485 100% 53.860 3.748 100%
Verbo Divino 228.562 8.403 75% 28.663 2.975 100%
CENESP 63.137 2.844 100% 7.918 2.207 100%
Brasílio Machado 346.130 10.585 78% 43.406 4.000 50%
Brasilinvest 133.581 2.923 100% 16.752 5.369 100%
Faria Lima Financial Center 430.742 6.914 56% 54.017 10.685 100%
Corporate Park 232.265 4.510 100% 29.127 7.369 41%
ABC Office 144.482 5.572 89% 18.119 3.252 20%
Total 2.008.382 54.236 251.862
Sep 30, 2003
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21. 2) PORTFOLIO ESCRITÓRIOS BRAZIL REALTY
LOCAÇÃO
UNDER Acquisition Site Total Delivery B.Realty
DEVELOPMENT Date (sqm) Area (sqm) Date Stake
Faria Lima Square mai/01 4.825 18.000 jul/05 13%
Av, JK 1455 jul/00 5.257 20.197 jul/05 54%
Faria Lima Square JK 1455 21
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22. 2) OFFICE PORTFOLIO BRAZIL REALTY
FARIA LIMA FINANCIAL CENTER
§ Site: 6.900 sqm
§ Total Private Area: 26.512 sqm
§ 17 floors from 1.280 to 2.220 sqm
§ Delivery date: Feb 2003
§ Architect: HOK / Collaço & Monteiro
§ Triple A building (new technologies /
sofisticated high class)
§ Quality Award Prêmio Folha 2003:
1st place – office building
§ Tenants: Itaú-BBA, Credit Suisse,
ING Bank, among others.
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23. 3) SHOPPING MALLS AND BRAZIL REALTY
TRADE PAVILLION
SHOPPING CENTERS Delivery Gross Leasable Annual Revenues B.Realty
Date Area (sqm) (,000 R$) Stake
ITM Expo jun/96 44.430 5.250 36%
ABC Plaza Shopping set/97 32.765 16.050 20%
Avenida Industrial nov/99 23.551 2.940 34%
§ 100.700 m² of leasable area
§ Own managing team
§ Diversified mix of stores
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24. 4) LAND INVENTORY BRAZIL REALTY
§ Prime location
§ Potential sale volume R$ 690 MM
(R$ 293 MM B.Realty’s stake)
§ Changes in municipal laws: potential for construction is
already assured
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25. 5) ECONOMICS / FINANCIAL BRAZIL REALTY
DATA
Annual Sales - B.Realty
160
140
120
100
MM R$
140
80 127
60
40 84
20
-
2001 2002 set/03
New Developments - Brazil Realty
18
16
14
12
10
#
8
6
4
2
-
2001 2002 set/03 2004 (e) 25
25

26. 1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
0
jan/02
DATA
fev/02
mar/02
abr/02
mai/02
jun/02
jul/02
ago/02
set/02
out/02
5) ECONOMICS / FINANCIAL
nov/02
dez/02
Cash Flow
jan/03
Construction
fev/03
mar/03
BRAZIL
abr/03
mai/03
jun/03
jul/03
ago/03
set/03
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REALTY
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27. 5) ECONOMICS / FINANCIAL BRAZIL REALTY
DATA
Net Operational Revenues
180
160
140
120
MM R$
100
80
60
40
20 Stockholder's Equity
-
350
1999 2000 2001 2002 set/03
300
250
MM R$
200
150
Net Profit
100
50
50
40
-
30 1999 2000 2001 2002 set/03
MM R$
20
10
-
1999 2000 2001 2002 set/03
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28. 5) ECONOMICS / FINANCIAL BRAZIL REALTY
DATA
Net Profit per Share
0,70
0,60
0,50
0,40
R$
0,30
0,20
0,10
-
1999 2000 2001 2002 set/03
Return on Net Equity
30%
25%
20%
MM R$
15%
10%
5%
0%
1999 2000 2001 2002 set/03
Pro-rata 28
28

29. 5) ECONOMICS / FINANCIAL BRAZIL REALTY
DATA – BALANCE SHEET
700
Permanent
600
79,5
500 Stockholder’s
125,8
Long-Term 363,7 Equity and
400 Minority
MM R$
Receivables
Interests
300
200 401,2 117,7 Long-Term
Liabilities
Current
100
Assets 125,1 Current
0 Liabilities
Assets Liabilities
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29

30. 5) ECONOMICS / FINANCIAL BRAZIL REALTY
DATA
(MM R$) Sep 30, 2003
CURRENT ASSETS 401,157
Available Funds 143,559
Accounts Receivable 71,632
Properties for Sale 185,966
LONG-TERM RECEIVABLES 125,831
PERMANENT ASSETS 79,547
TOTAL ASSETS 606,535
CURRENT LIABILITIES 125,144
LONG-TERM LIABILITIES 117,692
STOCKHOLDER'S EQUITY + MINORITY INTERESTS 363,699
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY 606,535
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31. 5) ECONOMICS / FINANCIAL BRAZIL REALTY
DATA – STATEMENT OF
INCOME
(,000 R$) Jul 01 - Sep 30, 2003 Jan 01 - Sep 30, 2003
Gross Sales and Services 39.088 99.932
Developments 32.562 83.739
Rent of Properties 5.933 14.583
Services rendered and other 593 1.610
Deductions of Gross Revenues -1.728 -3.943
Net Revenues of Sales and Services 37.360 95.989
Cost of Goods and Services -13.602 -43.454
Gross Profit 23.758 52.535
Operating Expences / Income -3.180 -15.630
Operating Profits 20.578 36.905
Profit before Taxation 20.578 36.905
Income Tax and Social Contrib. Provision -1.170 -3.079
Deferred 562 1.656
Minority Interest -303 -504
Net Income for the Period 19.667 34.978
Number of Shares 79.777 79.777
Profit per Share 0,2465 0,4384
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32. 5) ECONOMICS / FINANCIAL BRAZIL REALTY
DATA
American Companies Economic Value Economic Value Economic Value
/ Assets / Net Profit / Shareholder's Equity
CONS TOMOKA LAND CO-FLORIDA 1,56 36,37 2,20
NEWHALL LAND & FARMING CO-LP 2,08 29,44 n.d.
THE ST JOE COMPANY 2,16 26,83 5,26
CENTEX CORP 0,85 21,82 3,70
WCI COMMUNITIES INC 0,60 17,20 1,71
TECHNICAL OLYMPIC USA INC 0,81 17,08 2,08
WILLIAM LYON HOMES INC 0,75 16,95 2,54
AVATAR HOLDINGS INC 0,49 16,27 0,86
TOLL BROTHERS INC 0,97 14,14 2,84
DR HORTON INC 1,02 12,10 2,45
STANDARD-PACIFIC CORP 0,84 12,05 1,94
DOMINION HOMES INC 0,79 11,50 1,72
PULTE HOMES INC 0,61 11,08 1,52
KB HOME 0,94 10,94 2,49
HOVNANIAN ENTERPRISES-A 0,77 10,94 2,18
source: Banco Bradesco
BEAZER HOMES USA INC 0,82 10,48 1,82
M/I SCHOTTENSTEIN HOMES INC 0,87 10,43 1,48
MDC HOLDINGS INC 0,91 10,10 1,82
RYLAND GROUP INC 0,67 9,87 1,63
ORLEANS HOMEBUILDERS INC 0,80 9,77 2,69
NVR INC 2,04 9,11 5,97
LENNAR CORP-CL A 0,74 8,92 1,91
HOMEFED CORP 1,07 4,86 n.d.
Average 1,01 14,71 2,40
Brazil Realty 0,60 8,82 1,44
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33. AWARDS BRAZIL REALTY
Ÿ Most Admired Companies in the Real
Estate Sector (Interscience/ Carta Capital
magazine)
– 2000 - Cyrela 1st, Brazil Realty 2nd place
– 2001 - Cyrela 3rd, Brazil Realty 1st place
– 2002 - Cyrela 2nd place
– 2003 - Cyrela 2nd place
Ÿ Top Imobiliário
– 1996, 1997, 1998, 1999, 2000,
2001, 2002
Ÿ Valor Econômico
– 2001 - Executivo de Valor
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34. PREMIAÇÕES BRAZIL REALTY
Ÿ Fiabci’s Prix D’Excellence
– 1997 - Centro Têxtil
Ÿ Top de Marketing / ADVB – 2001
Ÿ Summit de Varejo / IPEDV FGV - 2002
Ÿ Prêmio Qualidade Folha
– 2003 – 1st place Launch of the Year: Vert Supreme
– 2003 – 1st place Office Building: Faria Lima Financial Center
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35. BRAZIL REALTY
Office
Av. Brigadeiro Faria Lima, 3.400 10 andar
04538-132 - São Paulo – Brasil
Tel. (11) 4502-3000
Investors Relationship
Luis Largman – Director
luis.largman@brazilrealty.com.br
(11) 4502-3153
Symbol
CYRE4
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