2. Disclaimer
We make forward-looking statements that are subject to risks and uncertainties. These Statements are
based on the beliefs and assumptions of our management, and on information currently available to us.
Forward-looking statements include statements regarding our intent, belief or current expectations or that
of our directors or executive officers.
Forward-looking statements also include information concerning our possible or assumed future results
of operations, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,''
''will,'' ''continues,'' ''expects,'„ ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions.
Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and
assumptions because they relate to future events and therefore depend on circumstances that may or may
not occur. Our future results and shareholder values may differ materially from those expressed in or
suggested by these forward-looking statements. Many of the factors that will determine these results and
values are beyond our ability to control or predict.
2
3. Gafisa‟s Differentiation
Industry Leading Liquidity and Corporate
Governance
Multifaceted Residential Products in All Income
Segments
National Footprint
Proven Track Record of Execution
Strong Brand Recognition and Solid Reputation
3
4. Shareholder Structure, Corporate Governance and
Liquidity
True corporation listed on the NYSE and the most liquid Brazilian Real Estate company
GFSA3 Majority Independent Board of Directors;
100% Senior management with an average of over 20
years of experience and interests aligned with
shareholders through Stock Option Plan;
80% 100%
Permanent Fiscal Council, Audit, Compensation,
Finance and Governance committees
100% free float;
Avg. Daily Trading Volume (R$ mm) - Last 90 days1
100% tag along rights;
110
84
100% common shares (“Novo Mercado”);
72
Full compliance with Sarbanes-Oxley;
36 36
Only Brazilian real estate company listed on the
16
NYSE.
PDG Cyrela Rossi MRV Brookfield
1. Source: Bloomberg as of August 2nd, 2010
4
5. Solid Track Record of Value Creation
Strong growth, value-creating transactions with a successful history in the capital
markets
1
3,921
3,022
Net revenue (R$ mm)
New Follow-on:
Net Primary
1,740 proceeds of
R$1.02 billion
1,204
664 R$600 mm
457 in FI-FGTS
debentures
(May/09)
Acquisition of
Follow-on: a 60% stake
R$488 mm
of primary R$600 mm Increase in
IPO: proceeds stake from
in FI-FGTS
R$494 mm 60% to 80%
debentures
of primary
(Dec/09)
proceeds
Equity
International First Brazilian
investment company in
the sector to
be listed in
Acquisition the NYSE Acquisition of
Foundation
of a 60% the remaining
stake 40%
1954 - 2004 2005 2006 2007 2008 2009 2010
1. Source: Consensus Bloomberg as of August 6th, 2010
5
7. Multifaceted Residential Products in All Income Segments
Focused on the residential market, with 3 leading brands strategically positioned in
all income segments
Segment /
Income
Mid and Upper-Mid Mid and Upper-Mid Affordable Entry-Level
Price
Unit price: > R$200 thousand Unit price: R$70 – R$500 Unit price: R$50 – R$200 thousand
Contribution
Sales
1H10
48% 14% 38%
Presence
44 cities in 14 states 55 cities in 22 states 91 cities in 14 states
Completed
Projects
17 projects/phases in 2009 5 projects/phases in 2009 130 projects/phases in 2009
Characteristics
Vertical Horizontal lot development Horizontal / Vertical
Metropolitan areas Suburban areas Metropolitan areas and surroundings
Custom projects Custom projects Standardized products
7
8. Strong Demand Growth in All Segments
Strong potential demand of around R$170 billion per year, being 58% in the mid and
upper mid income segment and 42% in the affordable entry-level segment
Number of Families (mm) New Families
Income Bracket Gafisa Potential Demand per Year
per Year
(Monthly) Brands (R$ bn)
2007 2030 (thousand)
Above R$ 32,000 0 0.3 13
Mid and Upper-Mid
New Families
R$ 16,000 - R$ 32,000 0.3 1.3 530
Income
43 (thousands)
Potential Demand
101
R$ 8,000 - R$ 16,000 1.1 4.3 139 (R$ bn)1
R$ 4,000 - R$ 8,000 3.3 11.0 335
New Families
R$ 2,000 - R$ 4,000 8.4 21.8 583 (thousands)
846
Entry-Level
Affordable
Potential Demand
72
(R$ bn)2
R$ 1,000 - R$ 2,000 15.5 27.6 526
Up to R$ 1,000 31.7 29.1 (113)
1,526
TOTAL 60.3 95.4 1,526
Source: “O Brasil Sustentável”, FGV and Ernst & Young, 2007
Notes: Gafisa: Positioned to capture growth in all
1. Assumes an average ticket of R$190,000
2. Assumes an average ticket of R$85,000 income segments demand
8
9. National Footprint
National footprint captures both rapidly growing and large metropolitan regions
Geographic Footprint Landbank Distribution vs. GDP Distribution
Landbank 2Q10 GDP Distribution - 2006
South South
7% 16%
Midwest São Paulo São Paulo
12% 34% Midwest 34%
9%
Northeast Northeast
19% 13%
North Rio de Janeiro North Rio de Janeiro
5% 14% 5% 12%
Other Southeast Others Southeast
9% 11%
R$ 15.8 Billion
Real GDP Growth 1
8.0%
6.6% 6.9%
Brand States2 Cities Legend 4.7%
14 44 3.1%
14 91
22 55
Consolidated 23 129
South Midw est Southeast Northeast North
Source: Company and IBGE
Note:
1. Nominal GDP growth rate per year for 2003 – 2006 adjusted by the average consumer price index (IPCA) of the period
2. Including Brasilia Federal District . 9
10. Strategically Located Land Bank
Gafisa has a strategic land bank that allows for continued project launches
Land bank distribution 1H10 Land bank PSV (R$ million)
Potential
Future
number of Swap
Company sales
units % 15,823 1,656 15,768
R$ billion
(% Gafisa) 1.6x
4,285 (1,712) 3,972
18.4 7.5 41.3
10,195
29.2 4.3 96.8 1,536 3,962 4,298
4.7x
2,930
42.9 4.0 31.4
7,576 7,497
5,729
Total 90.5 15.8 39.3%
2,167
IPO 2006 2007 2009 1H10 Net Actual 1H10
Launches Acquisitions
Gafisa Alphaville Tenda
*Note: Tenda 2007 represents Fit + Bairro Novo
10
11. Proven Track Record of Execution
Units Under Construction Projects under Construction
49,423 49,876
188 195
33,586
85
16,099
63
2007 2008 2009 2Q10 2007 2008 2009 1H10
Units Completed Number of Engineers
971
E: 20,000 880
367
674 309
10,831 241 58 61
459
8,206 47
186
31 513 543
3,108 7,497 386
242
2007 2008 2009 1H10/2010E 2007 2008 2009 1H10
Intern Enginners Construction Architects On the Job
11
Source: Gafisa
12. Strong Brand Recognition and Solid Reputation
Gafisa benefits from its strong brand recognition and solid reputation through: (i) a
higher sales speed (VSO); (ii) commanding premium prices; and (iii) easier access to
asset swaps / partnerships
Leading Brands Strong Brands in Every Segment
Maior Construtora do Brasil: Largest Construction
1st
Company in Brazil – 2008 / 2009 (ITCnet)
► 55 years in the Real Estate industry
► Completed more than 985 developments and 11 million m 2
► Awards: Valor Top Management and Top Manager of the Year
Top of Mind – 2008 (Diário do Grande ABC /
1st
IBOPE)
► One of the best known brands in the affordable entry-level
segment
► Completed more than 500 developments
1st Reference in Urban Development
► Completed more than 40 developments and 3.4 million m 2
► Awards: Best Social Responsibility and 2009 Top Social –
Alphaville Foundation
Source: ITCnet, Revista Marketing, Valor Econômico
12
14. Launches, Contracted Sales and Revenues
High growth rates over the last years ...
Launches (R$mm) Pre-Sales (R$mm) Net Revenues (R$mm)
1
4,000 to
5,000
4,196
3,248 3,022
1,970
2,578 988
2,301 1,361
2,236
300 313 932 1,835
617 1,740 277
1,712 1,747
237 1,627
377 276 580
60
420 587 300 670 1,204 250
238 7
193 170
1,005 995
1,913 325 245 664 1,757
1,698
1,510
1,265 1,329 1,345 1,215 1,085
1,005 995 1,004
800 832 664
2006 2007 2008 2009 1H10 2006 2007 2008 2009 1H10 2006 2007 2008 2009 1H10
Note:
1 2010E guidance range announced by the Company
14
15. EBITDA, Net Income and Results to be Recognized
… aligned with sustained growth in profitability
Adjusted EBITDA1 (R$ mm) and Net Income (R$ mm) and Results to be Recognized (Backlog4)
Margin (%) Margin 2 (%) (R$ mm) and Margin (%)
18.5% to
37.5%
20.5% 3
36.4%
17.5% 10.6%
35.1% 35.2%
34.6%
9.9%
15.0% 14.9% 9.6% 1,167
604
13.4%
75 214 1,066
1,015
8.1%
6.9% 162
19.2%
300
110
41 528
530
92
352 298
259 46
180
89
2006 2007 2008 2009 1H10 2006 2007 2008 2009 1H10 2006 2007 2008 2009 1H10
Lucro Líquido (R$ mm) Margem (%) REF (R$ mm) Margem (%)
EBITDA (R$ mm) Margem (%)
Notes:
Tenda‟s goodwill net of provisions
1 Adjusted for stock options and excluding Tenda‟s goodwill net of provisions
2 Net income before minority interests and non-recurring expenses
3 2010E guidance range announced by the Company
4 Gross Profit
15
16. Solid Balance Sheet
1H10 Leverage (R$ mm) Debt Composition (R$ mm) and Rates
SFH /
Net Debt / Project 1,708 8.2% - 11.5% (TR)
45.2% Finance
Shareholders‟ Equity
Working
Capital
678 CDI + (0.7% – 4.2%)
Debentures 663 CDI + (1.5 – 3.3%)
Investor
380 CDI
Obligations
1,806
Total 3,429 10.6%
Debt Maturity Schedule 1 (%)
3,429
949
713
1,623 63% 631 606
26%
80%
99%
74% 150
37%
20% 100%
Total Debt Cash Net Debt 2011 2012 2013 2014 From 2015
Note:
Project Finance (R$ mm) Corporate Debt (R$ mm)
1 Does not include investors obligations of R$380 mm
16
17. Trading Multiples
Liquidation Value (R$mn) Blue Chips (2Q10) Emerging Companie
Company Gafisa Peer1 Peer2 Peer3 Peer4 Avg(1)
Receivables from Sold Units 7,643 9,936 11,296 5,574 4,737
(-) Taxes (516) (671) (762) (376) (320)
(-) Obligations from Sold Units (2,042) (3,009) (3,755) (1,591) (1,697)
Mkt Value of Units for Sale 2,726 3,633 1,869 1,648 2,052
(-) Taxes (184) (245) (126) (111) (139)
(-) Construction Obligations (636) (653) (229) (436) (898)
Book Value of Land 702 2,038 2,455 1,108 668
(-) Swaps booked in Advances (104) (521) (1,874) (413) (71)
(-) Payables from land acqs. (304) (407) (348) (229) (382)
Other Assets 92 287 3 39 10
(-) Other liabilities (228) - - - -
Cash and Equivalents 1,806 1,120 997 982 1,466
(-) Corporate Debt (1,721) (1,953) (1,192) (1,023) (1,061)
(-) SFH and other Project Finance (1,708) (1,757) (1,578) (409) (1,085)
(-) Minority Shareholders (79) (114) (345) (189) -
(+) Invest. in Subsidiaries 195 144 13 - 2
Liquidation Value 5,641 7,828 6,424 4,574 3,282
BV Adjusted 4,652 7,524 5,811 3,902 2,982
BV 3,638 5,843 4,205 2,702 2,465
Deferred Income 1,068 1,708 1,712 1,261 517
Deferred Revenues 3,209 5,059 5,642 3,058 2,374
Deferred Costs and Expenses (2,042) (3,009) (3,755) (1,591) (1,697)
Taxes (over Sales and Income) (99) (341) (175) (206) (160)
Avg Stake 95% 98% 94% 95% 100%
P/LV 0.95 1.34 1.55 1.58 1.32 1.45
P/BVAdj 1.15 1.39 1.71 1.86 1.45 1.60
P/BV 1.47 1.79 2.37 2.68 1.76 2.15
Market Cap 5,352 10,459 9,966 7,241 4,335
# of shares 437 571 426 490 269
Closing price (August 17th) 12.2 18.3 23.4 14.8 16.1
*Source: Barclays Capital Research and Companies' Information / (1) Excluding Gafisa
17
18. Gafisa‟s Differentiation
Industry Leading Liquidity and Corporate
Governance
Multifaceted Residential Products in All Income
Segments
National Footprint
Proven Track Record of Execution
Strong Brand Recognition and Solid Reputation
18
20. Tenda: Differentiated Platform for the Affordable Entry-
Level Segment
Through Tenda, Gafisa has a differentiated and developed platform to capture growth
in the affordable entry-level segment
Innovative Building Technology: Higher
Sales Standardized Construction Process
ROE and Lower Cash Requirement
Centrally located and well diversified Standard
portfolio
Month 1 - 6 Month 7 - 19 Month 20
Duo Tower
Super 6
S
Garden Life
1 2-4 6
► Hybrid construction model with in-house Launch Construction Delivery
► Well-trained and dedicated sales force
and outsourced construction capabilities
helps clients with home purchasing and
financing decisions Down Payment Requirements
► Standardized materials
► Sales force located in areas with constant Down During
Financed
Payment Construct.
flow of people ► 4 project options in each production line
Super 6 6% - 94%
► High variety of products and branch Standard 3% 17% 80%
locations to best meet client needs ► Economies of Scale
20
21. Aluminium Mold Construction Technology
Tenda: Valle Verde Cotia, SP
► Construction cycle reduced from 12 to 4 months;
► Standardized projects;
► Less labor intensive;
► Less exposure to inflationary pressure during
construction period.
21
22. Alphaville: Differentiated Business for Residential Land
Communities
Alphaville Concept Steady Growth
Leisure
Residential Area Launches (R$ mm)
Area
420
312 325
Residential
Area
237
111
2006 2007 2008 2009 1H10
Alphaville
Commercial Area Club Commercial
Residential
Area
Multi-family
Area Pre-Sales (R$ mm) and VSO (%)
Areas
59%
Sustainable Business Model
59% 377 41%
60%
► Partnership contracts via land swaps 300
n.a. 238 245
► Construction only after pre-sales
► High sales velocity 140
► Alphaville Foundation enables sustainable integration with
the surrounding communities
2006 2007 2008 2009 1H10
22
24. Growing Credit Availability
In recent years, the credit supply for real estate financing has increased substantially
with lower interest rates and longer tenors
Interest Rates vs. Housing Financing
A favorable growth trend for credit availability began in
35% 120
2005, when the annual Selic was close to 20%;
30% 100
25%
80 In 2008 the Central Bank increased the Selic from
20%
60 11.25% to 13.75% without any impact on home financing;
15%
40
10%
5% 20 According to the Central Bank, the market is expecting
0% 0 a Selic of 11.00% by the end of 2010.
Dec-02 Apr-04 Sep-05 Feb-07 Apr-08 Apr-09 Mar-10
Selic (%a.a.) Real Estate Financing (R$ billion)
Real Estate Financing – Amount Funded (R$ bn) Housing Financing vs. GDP1
75 101%
83%
24
50
40
16
25 10
15 7 51 18%
10 34 13%
6 6 30 3%
4 18
3
3 6 9
2004 2005 2006 2007 2008 2009 2010E Denmark UK Chile Mexico Brazil
SBPE FGTS
Source: Central Bank, IBGE and ABECIP
Brazil: high growth potential for home financing
1. Data from 2006. For Brazil, consider data from 2009
24
25. Government Programs – MCMV I
Government programs were created to reduce the significant housing deficit in the lower
income segments
Highlights Simulation of Potential Impact on Market Size
► Financing for one million houses with up to Average Unit Price: “Minha Casa, Minha
Before
R$23,000 in subsidies to families with income of R$80k Vida” Program
up to 10x the monthly minimum wage (R$4,650)
Subsidy 0 16,000
► R$34 billion in subsidies (Federal Government, Mortgage 80,000 64,000
FGTS, BNDES)
Cost (TR+) 7% 5%
► Financing of homes with a price range of
Monthly installments 665 394
R$80,000 to R$130,000
Minimum monthly income 2,661 1,969
► Interest Rates ranging from TR+5% – TR+8%
Equivalent of minimum wages 6.4 4.2
► Homebuilders can finance 100% of the property
value Market Size
(millions of homes) 13.4 23.4
► No down payment and no installments during the
construction period (for families with income up to
3x the minimum wage) Additional market of approx. 10 million houses
Source: Market Reports
25
26. Government Programs – MCMV II
Government renewed MCMV program, giving more visibility to the Real Estate sector:
Highlights Income distribution
► MCMV II income distribution followed the same
distribution of the contracted units from MCMV I:
► Financing for two million houses up to 2014;
► R$72 billion in subsidies;
# of units: 1 million 330,191 2 million
► Continued growth for the next 3 years already 11% 10%
20%
committed; 30%
29%
40%
► General details to come up to 90 days after the
announcement;
60% 60%
40%
► It confirms the government commitment to
provide financing for entry level homebuyers.
MCMV I - target MCMV I - up to March MCMV II - target
1st/2010
0-3 MW 3-6 MW 6-10 MW
Source: CS, UBS, CEF, Market reports
26
27. Efficiency Gains under “MCMV” Program
Tenda contracted 15,129 units through April and has close to 17,000 units under CEF
analysis
Contracted Units in the "MCMV" I
Minimum Wages Caixa Econômica Fereral(1)
0 - 3 MW 250,333
3- 10 MW 251,167
TOTAL 501,500
(1) Until June 23 rd , 2010 for CEF . Breakdown between 0-3 and 3-10 based on the % from April 13th.
Pipeline
Period To be contracted(2) Contracted % MCMV TOTAL
2009 - 6,102 74% 6,102
1Q10 - 2,788 88% 2,788
2Q10 17,411 6,239 78% 23,650
TOTAL 17,411 15,129 78% 32,540
(2) Units being contracted in 2010 and already filed with CEF untill Jun 2010.
Transferred
Period Units % MCMV
2009 5,114 48%
1Q10 1,898 81%
2Q10 2,515 89%
TOTAL 9,527 65%
27
28. CEF Real Estate Financing
Caixa Econômica Federal has reached historical records of real estate financing, and
is responsible for 73% of the market contracts
Housing Financing Contracts (R$ bn) CEF vs. Market – Financing of New Units („000 units)
897 143
503
503 515 47 312
425 443 267 276
326 223 226
251 31 167
92
23 132 47
118
13 15
9 29 38 187 226
5 6 55 177 176 145
88 94 39
17
2003 2004 2005 2006 2007 2008 2009 Up to 2003 2004 2005 2006 2007 2008 2009 23-Jun
June 10
Financing (R$ bn) Financing Amount ('000) Caixa - Others Caixa - MCMV Market
2010 Contracts: Units („000) and Projects Inventory of Received Proposals („000 units)
Projects 3,966
Projects 738 3,149
397 814
255 240 2,815
145 2,325
656 140
188 1,868 576
114 193
17 1,402 478 104
42 364 149
885 91 137
96
495 256 78 120
60 10 262
135 147 66 95 481
130 33 37 334 394
27 8 75 69 267
22 7 39 191
8 53 26 44 121
8 12 30 4 26 64
2Q09 3Q09 4Q09 1Q10 Apr-10 abr/09 mai/09 jun/09 jul/09 ago/09 set/09 out/09 nov/09 dez/09 abr/10
0 a 3 SM 3 a 6 SM 6 a 10 SM Total
0 a 3 SM 3 a 6 SM 6 a 10 SM Total
Source: Caixa Econômica Federal
28
