2. 2
Managers Track-record
1999-2005
•Group CR2 is
founded in 1999
•Activities in Credit
and Real Estate
•Brazilian real estate
sector still in its
infancy
•CR2 launches 11
projects with PSV
worth R$218mm
2006
•Sector in expansion
mode
•Raised R$60mm via
fund structure
•Banks increase
credit availability to
construction finance
and home buyers
•CR2
Empreendimentos
Imobiliários SA is
founded
•Shift in target
market from
high/middle income
to economic
segment
2007
•Sector gains access
to capital markets
•IPO raises R$307mm
•Business model
enables flexibility to
accelerate when
there is ample liquity
•Total PSV launched
of R$774mm, and
CR2’s share of
R$535mm
2008
•Anticipating the
impact from the
global financial
crisis, the pace of
new launches is
reduced starting in
1H08
•Priorities are to
secure financing for
projects, preserve
cash
•Total PSV launched
of R$347mm, and
CR2’s share of
R$293mm
•Launches consistent
with initiative to
focus on the
economic segment,
and to expand into
the São Paulo
market
1S09
•Modest recovery in
economic activity,
but visibility still
limited
•Lower interest rates
and controlled
inflation are
positives
•Government
housing package to
provide
oppotunitites
•Focus remains in the
economic segment
(92% of land bank)
•Initiatives to
preserve cash and
sell inventories are
showing results
3. 3
1Q09 Highlights
1Q09 net profit of R$1.3mm (R$0.03 EPS) vs R$486.000 (R$0.01 EPS) in 1Q08
Initiatives were focused on preserving the cash position:
We did not carry out any launches in the quarter, and focused on selling inventories
We adjusted construction outlays to match disbursements from construction financing
lines
We accelerated the process of transferring home buyers to banks/CEF
Drastic reduction in cash burn to R$5mm in 1Q09, from R$44mm in 4Q08, finished 1Q09 with
R$39mm cash on the balance sheet
Corporate debt was R$19mm and construction financing (SFH) was R$68mm, which equate to
low leverage levels with net debt/equity = 13%
After the launch of the housing program Minha Casa Minha Vida, we achieved our goal to sign
an additional 5 contracts with Caixa Econômica Federal (CEF), taking the total to 7 projects or
R$281mm
Well positioned to benefit from the housing program Minha Casa Minha Vida, given exposure
to the economic segment and know-how to operate with CEF—the preliminary results are positive
4. 27,2
12,6
19,1
10,0
3,0
4,9
1Q08 4Q08 1Q09
CR2 Partners
15,5
37,2
24,0
4
1Q09 Operational Highlights
In 1Q09 we continued to focus on reducing inventories without any new launches, which
limited the speed of sales
1Q09 contracted sales were better than 4Q08 reaching R$24mm (+55% Q/Q) and CR2’s share
at R$19mm (+52% Q/Q)
Sales in April already benefited from the housing program Minha Casa Minha Vida, presenting
an improvement >50% vs the average monthly rate in 1Q09
Contracted Sales (R$ mm)
6. Period
(R$ mm)
Inventory at the
Beginning of
Period
Launches (CR2's
share)
Contracted
Sales (CR2's
share)
Inventory at the
End of Period
SoS
2006 0,0 33,4 11,9 21,5 35,7%
1Q07 21,5 62,4 31,5 52,4 37,6%
2Q07 52,4 27,0 18,5 60,8 23,3%
3Q07 60,8 63,1 32,4 91,6 26,1%
4Q07 91,6 183,9 59,2 216,3 21,5%
1Q08 216,3 47,9 27,2 237,0 10,3%
2Q08 237,0 131,3 144,4 223,9 39,2%
3Q08 223,9 113,9 67,6 270,2 20,0%
4Q08 270,2 0,0 12,6 257,7 4,6%
1Q09 257,7 0,0 19,1 238,6 7,4%
6
Inventory at Market Value & SoS
SOS (CR2’s share): *contracted sales in the period / (inventories at the beginning of the period + launched PSV in the period net of physical exchanges)]
Presents a downward trend
1Q09 = 64% of Shareholders’ Equity
7. 11%
29%
60%
Inventory at Market Value - AveragePrice
R$350k - R$500k
R$220k - R$350k
< R$220k
7
Inventory at Market Value Profile
4%
74%
22%
Inventory at Market Value - Construction Status
Completed
Under Construction
Construction not
Started
100% of inventory
eligible to SFH
financing
8. 8
Projects Delievery - Schedule
90% 74%
51%
82%
58%
53%
49%
750
1.021
909
763
1.484
952
172
-
200
400
600
800
1.000
1.200
1.400
1.600
2T09 3T09 4T09 1T10 2T10 3T10 4T10
Delivery Schedule (Units Sold and Inventory)
Sold Inventory
7 projects to be concluded in 2009 with total PSV of R$376mm and CR2’s share at R$261mm
71% of the 2,680 units to be delivered in 2009 already sold
9. Project
Total PSV
(R$ MM)
Bank Type of Funding
Project Delivery -
Forecast
Financing Status Line of Credit
Green Park 3000/4000 55,7 Itaú "Repasse nas Chaves" Dec-2008 Contract Signed - transfer of credit in progress
Verano I 130,0 Itaú "Plano Empresário" Aug-2009 Contract Signed - financing kicked-in Itaú
Verano II 105,0 Itaú "Plano Empresário" Mar-2010 Contract Signed - financing kicked-in R$250 milion
Parque das Águas 140,0 Itaú "Plano Empresário" Mai-2010 Contract Signed - financing kicked-in
Parque das Águas 140,0 Unibanco "Repasse na Planta" Dec-2010 Contract Signed - transfer of credit in progress Unibanco
Splendore Valqueire I 15,9 Unibanco "Repasse na Planta" Jul-2009 Contract Signed - transfer of credit in progress R$29 milion of PSV
Villaggio Del Mare 58,9 Santander "Plano Empresário" Jul-2009 Contract Signed - financing kicked-in Santander
Barra Allegro 41,5 Santander "Plano Empresário" Dec-2009 Contract Signed - financing kicked-in R$100 milion of PSV
Verano III 67,0 Bradesco "Plano Empresário" Mar-2011 Contract in Process - To be signed in May/June Bradesco R$90 milion
Felicittá 29,3 Real "Plano Empresário" Apr-2010 Contract in Process - To be signed in May/June Real R$12 milion
Via Parque 4,9 CEF "Repasse nas Chaves" Mar-2008 Contract Signed - transfer of credit in progress
Mirante Bonsucesso 28,4 CEF "Crédito Associativo" Mai-2009 Contract Signed - financing kicked-in
Top Life Itamaraty 43,0 CEF "Crédito Associativo" Feb-2010 Contract Signed - disbursements in May/June
Villagio do Campo 65,0 CEF "Crédito Associativo" Jun-Dec 2009 Contract Signed - disbursements in May/June CEF(1)
Premium Cpo. Grande 47,0 CEF "Crédito Associativo" Jun-2010 Contract Signed - disbursements in May/June R$ 2,5 bilion of PSV
Acqua Park 67,3 CEF "Crédito Associativo" Jul-2010 Contract Signed - disbursements in May/June
Top Life Park 25,3 CEF "Crédito Associativo" Jul-2010 Contract Signed - disbursements in May/June
Jardim Paradiso 36,8 CEF "Crédito Associativo" Dec-2009 Letter of Credit - Under engineering analysis at CEF
9
Financing
(1) Commitment signed with CEF in July 2007. The R$2.5 billion will fully cover Cidade Paradiso.
CEF update:
First disbursements in Crédito Associativo
Total of 7 projects financed by CEF, with a total PSV of R$281mm and CR2’s share at R$239mm
Know-how and good relationship
11. 11
Results to be Recognized
1Q09 revenue to be recognized of R$285mm and results to be recognized of R$92mm (32,2%
margin)
On and off balance sheet receivables totalled R$527mm in 1Q09, of which R$151mm are
short-term
Revenues and Results to be Recognized (R$ 000) 1Q09 4Q08 4Q07
Revenues to be Recognized 284.746 311.074 195.918
Cost of Units Sold to be Recognized 193.016 206.360 139.923
Gross Profit to be Recognized 91.730 104.714 55.995
Gross Margin to be Recognized 32,2% 33,7% 28,6%
12. 12
Capital Structure / Liquidity
1Q09 liquidity update: cash position of R$39mm and corporate debt of R$19mm
Cash burn was reduced to R$5mm in 1Q09, including a positive cash flow in March
Important progress in disbursements of financing lines:
SFH disbursements were R$27mm in 1Q09, almost double the amount in 4Q08, reaching
R$68mm on the balance sheet, we still have R$170mm in contracted SFH financing to be
disbursed
First disbursement of the Crédito Associativo from CEF (R$6mm from one project)
After the launch of Minha Casa Minha Vida we signed another 5 contracts with CEF,
bringing the total to R$281mm
Optimization of the transfer of receivables from completed units, which totalled R$28mm
in 1Q09
Low leverage with a net debt/equity of 13% (including SFH financing)
13. 13
Land Bank (To Be Launched)
Development City (State) Segment
Average Price
(R$ 000)
Units
Total PSV
(R$ MM)
CR2's PSV
(R$ MM)
% CR2
Jardim Paradiso II – III Nova Iguaçu (RJ) Economic 68 1.283 87,0 80,9 93%
Javri Santo André (SP) Economic 174 190 33,0 28,4 86%
Colônia Paraíso S. J. Campos (SP) Economic 82 392 32,0 27,5 86%
Manaú 2 Guarulhos (SP) Economic 81 420 34,0 29,2 86%
Splendore Valqueire II Rio de Janeiro (RJ) Economic 156 160 25,0 20,0 80%
Sta. Cecília – Madureira I Nova Iguaçu (RJ) Economic 50 1.613 80,0 64,0 80%
Barrartes Rio de Janeiro (RJ) Commercial 237 507 120,0 84,0 70%
Sta. Cecília – Madureira II Nova Iguaçu (RJ) Economic 50 1.612 80,0 64,0 80%
Pq. das Águas II São Gonçalo (RJ) Economic 162 1.152 187,0 149,3 80%
Pq. das Águas III São Gonçalo (RJ) Economic 171 492 84,0 67,2 80%
Pq. das Águas IV São Gonçalo (RJ) Economic 89 942 84,0 67,2 80%
Warehouse ABEAR Rio de Janeiro (RJ) Commercial 591 389 230,0 161,0 70%
Cidade Paradiso Nova Iguaçu (RJ) Economic 72 30.183 2.180,0 2.180,0 100%
Total 83 39.335 3.256,0 3.022,7 93%
17. 17
Disclaimer
This presentation contains certain statements that are neither reported financial results or other historical information. They
are forward-looking statements.
Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially
from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are
beyond CR2’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of
other market participants, the actions of governmental regulators, the Company's ability to continue to obtain sufficient
financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company
operates or in economic or technological trends or conditions, inflation and consumer confidence, on a global, regional or
national basis.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of
this document. CR2 does not undertake any obligation to publicly release any revisions to these forward looking statements
to reflect events or circumstances after the date of this presentation.
