Public Meeting 2009

Public Meeting
December, 2009
DISCLAIMER| Forward Looking Statements
The forward looking statements contained in this
presentation are based on the Management’s current
assumptions and outlook. Actual results, performance and
events may differ significantly from those expressed or
implied in these forward-looking statements as a result of
several factors such as the general and economic conditions in
Brazil and abroad, interest and exchange rates, future
renegotiations or pre-payments of liabilities or
loans
denominated in foreign currency, changes in laws and
regulations, and general competitive factors (regionally,
nationally or internationally).
2
AGENDA
THE COMPANY
COMPETITIVE ENVIRONMENT
SYNERGIES AND PROCESSES
3
THE COMPANY| History
2009Merger of
2008
2007
2006
Chambertin
appears
between the
15 biggest
1998
Hotel
Golden
Tulip arrives company in
Brazil.
in Brazil in
GT Paulista
Plaza.
In July, Invest Tur
made its IPO,
raising a total of
R$ 945 milhões
of gross
proceeds.
Beginning of
Holding’s
structure,
starting the
operations in
Brazil with
acquisition of
Chambertin and
owned Hotels in
Rio de Janeiro.
LAHotels into
Invest Tur.
4
THE COMPANY | Breakdown View
IVTT
Owned Hotels
13 owned Hotels in Brazil.
 Operations are more
representative in the
Company’s results mainly due
to operational efficiency and
group infrastructure.
Managed Hotels
18 managed Hotels in Brazil.
Increase in results with cost
efficiency and economies of
scales for all company.
Real State Development
16 greenfield projects in the
Land bank to be developed.
 Greater possibility of return
to the company trough strong
cash generation in the middle
and long terms.
 Acquisitions of hotels with big opportunities of upside, management of hotels and
development of second homes real estate projects in a variety of regions ensure a successful
future for the Company.
5
THE COMPANY| The Brand
The brand is the soul of the Golden Tulip. With the Golden Tulip, new hotels
can make the transition easily to enter the “International Standards with
Local Flavor”.
Agreement with Golden Tulip, where the company is
allowed to explore the brand in Latin America, with
exclusive contract and special fees of international
marketing.
Txai brand owner to development of resorts
6
THE COMPANY|LATEST HIGHLIGHTS
 Acquisitions of two hotels (Albert International in Porto Alegre and
Bahia Mar in Salvador) supporting the strategy of expanding the
network of hotels;
 We have begun implementing operating improvements at the Royal
Tulip (5 star) and Golden Tulip Brasília Alvorada (4 star) hotels;
 Increased our stake in Txai Itacaré from 50.01% to 70.62%;
Transfer of all shares of the SPE in the São Paulo Fair area project (São
Paulo’s financial center), in exchange for 29.75% of the PSV of the new
project that will be developed on that land;
 Implementation of the Company-wide integrated management system
has already begun;
 Reduction in the capital of the Company to partial absortion of the
accumulated losses.
7
THE COMPANY| New Administration
Royal Tulip & Golden Tulip
Brasília
(Close to Palácio da Alvorada)
Number of rooms......
843
Standard....................
4 and 5 star
August, 2009*
*Start of Administration
8
THE COMPANY| Acquisition of Albert Hotels- RS
Hotel Albert
Porto Alegre
(Close to Historical Center of Porto
Alegre and Airport)
Number of rooms..........
Convention rooms.........
148
3
Standard........................
3 star
January, 2010*
* Start of Administration
9
THE COMPANY| Acquisition of Bahia Mar hotel- BA
Hotel Bahia Mar
Salvador
(Close to several touristic places)
Number of room.............
Stores..............................
202
2
Standard..........................
4 star
Abril de 2010*
* Start of Administration
10
THE COMPANY | Hotel Segment Focus
11
THE COMPANY | Presence
RR
AP
Fortaleza
Natal
Saint Martin
Praia Mansa
Iate Plaza
Interatlântico
Potengi
Ponta Negra
MA
PA
CE
TO
RO
Holiday Inn
RN
PB
PE
AL
SE
PI
Itacaré
Txai
BA
MT
Rio de Janeiro
Regente
Copacabana
Continental
Porto Bali
GO
MG
Brasília
MS
ES
Alvorada Park
Alvorada Tower
SP
RJ
PR
SC
Cities that will host World Cup games
Areas with established hotels
States where Invest Tur is present
Managed Hotels
Own Hotels
Recife flat
Salvador
AM
AC
Recife
RS
Paraná
Afonso Pena
Batel
Santa Felicidade
São Paulo
Paulista Plaza
Park Plaza
Interative flat
Hampton Park
Paulista Convention
Luz Plaza
Grand Plaza
Belas Artes
Campo Largo
Bonaparte Barigui
Bonaparte Curitiba
12
THE COMPANY| Pipeline - Hotels
Opportunities
Hotels (#)
Rooms (#)
Price (R$)
High probability
(# rooms)
Moderate
probability
(# rooms)
Low probability
(# rooms)
Sudeste
58
13.400
1.705 MM
1.479
1.909
5.616
Sul
34
8.091
786 MM
640
519
4.242
Nordeste
39
9.138
1.056 MM
1.233
4.519
1.134
Centro-Oeste
16
3.357
440 MM
1.100
414
1.130
Norte
2
334
32 MM
234
---
---
TOTAL
149
34.320
4.022 MM
4.686
7.321
12.122
R$ 970 MM
R$ 1.350 MM
Region
Average of R$ 117 thousand per room
R$ 830 MM
Not including the projects of hotel development and the projects involving hotel chains.
13
THE COMPANY | Projects Segment
14
THE COMPANY | Landbank
1 Land- Port Beach
RR
AP
2 Lands
=> Long Beach
=> Wind Beach
AM
MA
PA
CE
RN
PB
PI
AC
PE
AL
SE
TO
RO
BA
MT
DF
GO
MG
ES
MS
SP
PR
SC
Areas greenfield
RS
2 Lands
=> Green Wave
=> Pontal do Camaragibe
8 Lands
=> Conduru - Itacaré
=> Boná - Itacaré
=> Singlehome - Trancoso
=> Golf Boutique - Trancoso
=> Txai - Salvador
=> Atalaia - Canavieras
=> Marina - Canavieras
=> Praia da Ponta - Canavieras
RJ
2 Lands
=> Deep Beach - Paraty
=> Txai - Paraty
1 Land – Txai Santa Catarina
States with Invest Tur presence
15
THE COMPANY| Gross Revenue and Profit | Hotel
Hotel Segment Gross Revenue(R$ MN)
 YTD Gross Revenue was up 75%
versus 9M08 due to higher sales,
chain
expansion,
higher
occupancy and average daily
rates.
61,3
+75%
34,9
9M08 Pro Forma
9M09
Gross Profit(R$ MN) and Gross Margin
Gross profit up 184% in 9M09
versus 9M08.
Gross margin growth in the 9M09 x
9M08 comparison, due to operating
improvements.
26,83
GM – 48,3%
+184%
GM – 29,6%
9,4
9M08 Pro Forma
9M09
Lucro Bruto
16
THE COMPANY| Indicators| Hotel
Invest Tur Own Hotels Portfolio
61,2%
62,2%
Smaller 2009 RevPar in relation
to 2008 due to new 3-star hotels.
Occupancy 1 percentage points
higher in 9M09 versus 9M08.
202
194
124
121
9M08 Pro Forma
9M09
Average Daily
Rate (R$)
Occupancy Rate (%)
Indicators - Hotéis RJ
Rio de Janeiro posted growth in
all indicators in 9M09 versus
9M08, due to commercial force
and improvements made by the
Company at the hotels.
68,2%
62,3%
209
170
143
106
9M08 Pro Forma
RevPar (R$)
9M09
Average Daily Rate (R$)
Occupancy Rate (%)
17
THE COMPANY| EBITDA Breakdown
 EBITDA increased to R$14.9 million year-to-date, due to better performance of
own and managed hotels , as well as to consolidation of the Company’s hotel
portfolio.
 Trend of increase in EBITDA from the rates of hotel administration
EBITDA breakdown by service
(R$ MN)
14,9
+169%
5,5
0,7
0,9
0,1
13,3
1,3
4,2
9M08 Pro Forma
Hotel Administration
9M09
Rent
Services and Sales Revenues
18
THE COMPANY| Conciliation EBITDA
 Drop in year-to-date administrative expenses versus 2008, due to synergy gains
between the two structures.
 Growing hotel segment EBTIDA.
 GR Capital’s expenses ends in november 2010.
EBITDA Conciliation (R$ MN)
Hotel Segment EBITDA
-
G&A Expenses Holding
SPEs / Real Estate Projects Expenses
GR Capital
Extraordinary Expenses
= Consolidated EBITDA
9M08 Pro
Forma (1)
9M09 (2)
5,5
14,9
(19,3)
(2,4)
(7,3)
-
(13,7)
(7,5)
(5,7)
(12,8)
(23,4)
(24,8)
(1) Considering the consolidation of LAHotels' hotel segment income statement and Txai Itacaré's operational income, the latter
considering the period from 11/01/07 to 07/31/08
(2) Considering the consolidation of LAHotels' hotel segment income statement and Txai Itacaré's operational income, the latter
considering the period from 11/01/08 to 06/30/08 by 50,01% and 07/01/09 to 09/30/09 by 100%
19
THE COMPANY| Balance Sheet (R$ thousand)
ASSETS
2Q09
3Q09
Current
Cash
Financial Investments
Clients
Advances to Suppliers
Prepaid Expenses
Inventory
Other
298.957
4.661
278.616
10.842
998
3.126
662
52
289.793
2.138
269.856
13.690
1.336
1.741
906
126
Long-term Assets
Inventory of Properties to be Sold
Recoverable Taxes
Receivables from the Sale of Fixed Assets
Credits with Related Parties
195.852
179.761
11.244
0
4.847
211.319
154.227
10.223
45.370
1.499
Permanent Assets
Property, Plant and Equipment
Deferred Charges
Intangible Assets
225.302
185.282
2.550
37.470
236.730
196.062
2.467
38.201
TOTAL ASSETS
720.111
737.842
LIABILITIES
2Q09
3Q09
Current
Loans and Financing
Suppliers
Taxes, Fees and Contributions
Labor and Tax Liabilities
Debts with Related Parties
Accounts Payable for Acquisition
Capital Shares to be paid-in
Sundry
24.704
3.610
1.690
5.471
2.866
1.937
2.518
5
6.607
27.777
3.123
3.641
5.602
5.796
1.937
1.352
0
6.326
Long-term Liabilities
Loans and Financing
Accounts Payable for Acquisition
Debts with Related Parties
Provision for Contingencies
62.121
54.363
2.000
5.463
295
69.068
61.314
2.000
5.259
495
2.199
5.618
Minority Interest
Shareholders' Equity
Capital Stock
Capital Reserves
Shares Held in Treasury
Retained Earnings / Accumulated Losses
631.087
801.019
110.005
(19.693)
(260.244)
635.379
801.019
90.312
(9.906)
(246.046)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
720.111
737.842
20
THE COMPANY| Income Statement (R$ thousand)
Consolidated Income Statement (in thousands of
R$)
Gross Operating Revenue
Taxes and Deductions
Net Operating Revenue
Cost of Goods Sold and Services Rendered
Gross Profit
9M08 Pro
Forma (1)
34.947
(3.146)
31.801
(22.371)
9.430
9M09 (2)
61.279
(5.718)
55.560
(28.733)
9M09 vs
9M08
75%
82%
75%
28%
26.828
184%
General and Administrative Expenses
Sales Expenses
Other Operating Revenues
Taxes and Deductions
(40.325)
(2.096)
(198)
-
(58.396)
(3.706)
(448)
129
45%
77%
n/a
n/a
Earnings before Financial Income
(33.189)
(35.593)
-7%
(5.765)
55.088
49.323
(7.563)
34.952
27.389
31%
-37%
-44%
16.134
(8.204)
-151%
(9.098)
7.791
316
318
15.296
(4.900)
n/a
n/a
n/a
n/a
-46%
Net Income/Loss for the Year
7.036
10.617
Gross Margin
Net Margin
29,7%
22,1%
Financial Expenses
Financial Revenues
Financial Income
Income before Taxes and Social Contribution
Provision for Asset Impairment
Minority Interest
Income from the Sale of Fixed Assets
Equity Accounting in Dis continue d Bus ine s s e s
Provision for Taxes and Social Contribution
48,3%
19,1%
51%
18,6 p.p.
-3 p.p.
(1) Considering the consolidation of LAHotels' hotel segment income statement and Txai Itacaré's operational income, the latter
considering the period from 11/01/07 to 07/31/08
(2) Considering the consolidation of LAHotels' hotel segment income statement and Txai Itacaré's operational income, the latter
considering the period from 11/01/08 to 06/30/08 by 50,01% and 07/01/09 to 09/30/09 by 100%
21
THE COMPANY| Cash Evolution
 Company ended 3Q09 with R$272 million in cash
 Capex of R$9.4 million and R$29.6 million in share repurchase
 Average debt maturity of 9 years
Informações Consolidadas
Saldo de Caixa Inicial
9M09
503.789
G&A Expenses
SPEs Expenses
CAPEX
Financial Revenues
Hotels's Results
Payments of Loans
Captation of Loans
Capital's Reduction
LA Hotels Cash
Share Buyback
(43.830)
(8.991)
(9.452)
31.035
8.694
(4.094)
5.857
(300.000)
118.586
(29.599)
Total Funds Used
(231.794)
Closing Cash Balance
271.994
Debts
(64.437)
Net Cash
207.557
22
THE COMPANY| Financial Market
Listed in the Novo Mercado: higuest level of corporate governance
- 100% of tag along rights: respect to the minoritary share holder
- Administration counsil with 2 independent members
- Observance to the CVM’s rules and the S.A’s rule
Total transparency
Liquidity for the enterprise investors
Audited by Ernst Young
Confiability on the economic-operational data that is disclosed
Competitive cost of capital
Potential of growth throughout the emission of secondary shares or debt
instruments
23
THE COMPANY| Capital Stock’s Composition
Capital Stock's Composition
- Invest Tur
Total (1.823.608)
52,0%
(948.734 )
36,0%
LA HOTELS LLC + GPCP4
(657.360)
ES TOURISM EUROPE SA
BOARD OF DIRECTORS
TREASURY
OTHERS
2,6%
(47.200)
3,1%
(56.414)
6,2%
(113.900)
Market Cap* (12/07/2009):
R$ 501,5 MM
In 12/07/2009
* IVTT3 = R$ 274
24
AGENDA
THE COMPANY
COMPETITIVE ENVIRONMENT
SYNERGIES AND PROCESSES
25
COMPETITIVE ENVIRONMENT | Ranking 01/02
RK
08
RK
09
Management Company
Nº of
Hotels 08
Nº of
Hotels 09
Nº of
Rooms 08
Nº of
Rooms 09
1
1
Accor
136
133
22.980
22.510
2
2
Atlântica
69
71
11.725
12.056
4
3
4
IVTT / LA Hotels
26
28
4.095
4.942
Blue Tree
24
23
4.358
4.042
Nacional Inn
26
27
3.389
3.404
5
5
6
Sol Meliá
14
13
3.441
3.131
7
7
Othon
23
21
3.120
2.813
9
8
Transamérica
18
18
2.556
2.620
11
9
Bristol Hotelaria
16
21
2.090
2.528
10
10
Windsor
9
9
2.194
2.129
3
6
IVTT / LA HOTELS went from 15th to 3rd place in just 18 months.
Source: Hotel in numbers 2009 / Jones Lang La Salle
* Includes existing hotels and condo hotels as of July 2009
26
COMPETITIVE ENVIRONMENT | Ranking 02/02
RK
08
RK
09
Management Company
Nº of
Hotels 08
Nº of
Hotels 09
Nº of
Rooms 08
Nº of
Rooms 09
8
11
Bourbon
12
10
2.769
2.018
12
12
InterContinental
5
5
2.006
2.006
13
13
Posadas
10
10
1.879
1.869
14
14
InterCity
13
14
1.665
1.797
17
15
Hotéis Slavieiro
13
15
1.367
1.779
29
16
Vila Galé
3
5
956
1.575
18
17
Tropical
5
5
1.346
1.488
16
18
Deville
10
10
1.402
1.462
15
19
Pestana
9
8
1.607
1.430
19
20
Estanplaza
10
10
1.281
1.281
Source: Hotel in numbers 2009 / Jones Lang La Salle
* Includes existing hotels and condo hotels as of July 2009
27
AGENDA
THE COMPANY
COMPETITIVE ENVIRONMENT
SYNERGIES AND PROCESSES
28
SYNERGIES AND PROCESSES| Revenues Increase
 Access to an internacional distribution chain leading to an
increase of the occupancy rate;
 Value Drivers (comercial tools Golden Tulip);
 National Sales Force / Call Centers Brasil;
 Increase in events due to the distribution chain and the
number of corporate clients registered in the chain;
 Change in the mix of clients, from tourists to corporative
meetings that generates a highes consumption of food and
beverages;
 Management Database for comparative analysis / reports.
29
SYNERGIES AND PROCESSES| System
Guests
500,000 travel agents
GDS
Golden Tulip website+1,200 3rd
party partners
45 call centers
Voice
Internet
GoldRes
Properties
30
SYNERGIES AND PROCESSES| Cost Management and Quality
 Centralization of administrative operations (accounting, sales,
purchasing, human resources,etc.);
 Renegotiation of contracts (maintenance, insurance e etc);
 Stablishment of rigid expenditures control;
 Implementation of different technology (air conditioner,
lamps...) that generate low-cost economy.
 Corporate purchasing – WEBB (economy of scale);
 Manual of rules and procedures and salary and training
program for employees;
 Qualified evaluated by performance and potential.
31
SYNERGIES AND PROCESSES| Case Regente
Hotel Regente (Rio de Janeiro)
Acquisition in February, 2008
231 Rooms.
Construction of over 100 rooms
(Slated to June, 2010)
32
SYNERGIES AND PROCESSES| Case Regente
Hotel Regente (Rio de Janeiro)
33
SYNERGIES AND PROCESSES| Case Regente
Hotel Regente (Rio de Janeiro)
9M 08
9M 09
Rooms revenue
R$ 7.031K
R$ 10.491K
49,2%
Complementary sales
R$ 3.018K
R$ 2.687K
11%
Gross Operational Profit
R$ 5.642K
R$ 8.465K
50%
Occupation
60%
69%
9 p.p.
Average daily rate
R$ 175
R$ 240
37,3%
RevPar
R$ 105
R$ 168
60%
EBITDA
R$ 1.907K
R$ 4.605K
141,5%
34
FINAL CONSIDERATION
35
IR Contact
Rogério Miranda (Officer)
Luiz Medeiros(Coordinator)
+55 21 3545-5417
+55 21 3545-5479
[email protected]
[email protected]