3Q09 Conference Call Presentation

3Q09
Results Conference Call
November 16, 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).
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Agenda
1. Introduction
2. Financial Information & Cash
Management
3. Q&A
2
Introduction | Highlights
Recent Event
We have proposed a capital reduction of R$160.2 million to offset
accumulated losses that was approved at the November 13 Meeting.
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Introduction | Highlights
Quarterly Highlights
We have begun implementing operating improvements at the Royal
Tulip (5 star) and Golden Tulip Brasília Alvorada (4 star) hotels, and
have already noticed higher occupancy rates at the hotels.
We have solved the governance issue by increasing our stake in Txai
Itacaré from 50.01% to 70.62%, and we intend to use the Txai brand
in future projects in.
Implementation of the Company-wide integrated management
system has already begun.
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. This project is
slated for launch in the first half of 2010, with expected PSV
between R$150 million and R$180 million.
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Introduction | Highlights
Consolidated Financial Statements
Hotel
Segment
Net revenue of R$18.3 million and gross margin of 47.9% in 3Q09.
EBITDA of R$4.8 million and R$14.9 million in 3Q09 and 9M09,
respectively.
Holding
10% year-on-year decrease in G&A expenses in 3Q09 versus 3Q08
showing synergy gains after the merger of LA Hotels.
Consolidated
 R$272 million in cash and net income of R$14.2 million at the end
of 3Q09.
On July 7, the new one-year Stock Buyback Program was approved with permission
to acquire up to 85,463 shares, 47,200 of which have already been repurchased.
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Diversified Positioning - Hotels
Presence in 8 Brazilian states in hotel segment
RR
AP
Fortaleza
Natal
Saint Martin
Praia Mansa
Iate Plaza
Interatlântico
Potengi
Ponta Negra
MA
PA
CE
TO
RO
RN
PB
PE
AL
SE
PI
DF
MS
RJ
Paulista Plaza
Park Plaza
Interative flat
Hampton Park
SC
Aras with established hotels
States where Invest Tur is present
Own Hotels
Porto Bali
São Paulo
PR
Cities that will host World Cup games
Continental
ES
SP
Txai
Copacabana
MG
Alvorada Park
Alvorada Tower
Itacaré
Regente
GO
Brasília
Holiday Inn
Rio de Janeiro
BA
MT
Managed Hotels
Recife flat
Salvador
AM
AC
Recife
RS
Paraná
Afonso Pena
Batel
Santa Felicidade
6
Campo Largo
Bonaparte Barigui
Bonaparte Curitiba
Paulista Convention
Luz Plaza
Grand Plaza
Belas Artes
Diversified Positioning – Real Estate
Presence in the real estate markets of 7 Brazilian states
1 Long-term landbank- Port Beach
RR
AP
2 Long-term landbanks
=> 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
2 lots for touristic real estate development
=> Green Wave
=> Pontal do Camaragibe
8 lots for touristic real estate development
=> Conduru - Itacaré
=> Boná - Itacaré
=> Singlehome - Trancoso
=> Golf Boutique - Trancoso
=> Txai - Salvador
=> Atalaia - Canavieras
=> Marina - Canavieras
=> Praia da Ponta - Canavieras
RJ
2 lots for touristic real estate development
=> Deep Beach - Paraty
=> Txai - Paraty
1 lots for touristic real estate development – Txai Santa Catarina
RS
Greenfield areas
States where Invest Tur/LaHotels is present
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Agenda
1. Introduction
2. Financial Information & Cash
Management
3. Q&A
8
Invest Tur's Performance
 Net revenue of R$18.3 million in 3Q09 (+57% over 3Q08)
 Hotel segment EBITDA of R$4.8 million in 3Q09 (+107% versus 3Q08)
 Hotel segment EBITDA of R$14.9 million in 9M09 (+169% over 9M08)
 Hotel segment EBITDA margin of 26.4% in 3Q09 (+6.3 p.p. in relation to
3Q08)
 Net income of R$14.2 million including the sale of a land in São Paulo
Capex of R$6.1 million in the quarter
Net cash of R$207 million
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Gross Revenue and Profit | Hotel Segment
Hotel Segment Gross Revenue
(R$ MN)
 3Q09 GR was 58% higher than
3Q08 due to higher sales and
chain expansion.
+75%
+58%
 GR grew 9% in relation to 2Q09
due to higher occupancy and
average daily rates.
+9%
 YTD Gross Revenue was up 75%
versus 9M08.
Gross Profit (R$ MN) and Gross Margin
 Gross profit up 7% in 3Q09
versus 2Q09 and 143% versus
3Q08.
Gross margin growth in the
9M09 x 9M08 comparison, due
to operating improvements.
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Indicators | Hotel Segment
Invest Tur Own Hotels Portfolio
Occupancy 3 percentage points
higher in 3Q09 versus 2Q09.
RevPar
quarter.
up
6%
quarter-on-
Smaller 2009 RevPar in relation
to 2008 due to new 3-star hotels.
Average Daily
Rate (R$)
Indicators - Hotels RJ
Rio de Janeiro posted growth in
all indicators in 3Q09 versus
3Q08 and 2Q09, due to
commercial
force
and
improvements made by the
Company at the hotels.
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Occupancy Rate (%)
Example of Hotel Performance
Case study: Income Statement of Golden Tulip Regente Hotel (RJ)
Operating and Comercial gains obtained from Company scale and
efficiency.
Example of hotel income statement (in thousands of R$)
Income Statement (in thousands of R$)
9M08
9M09
Revenue from staying
Costs of staying
Income from Staying
Margin
7.031
(1.743)
5.288
75%
10.491
(1.770)
8.721
83%
Revenue from F&B and others
Costs from F&B and others
Income from F&B and others
Margin
Taxes and Deductions
3.018
(1.766)
1.252
41%
(898)
2.687
(1.758)
929
35%
(1.185)
INCOME FROM ACTIVITIES
Maintenance and Utilities
G&A and Marketing
5.642
(1.815)
(1.920)
8.465
(1.651)
(2.209)
1.907
4.605
EBITDA
OPERATING INDICATORS
9M08
Occupancy Rate
Average Daily Rate
RevPar
60%
175
105
12
9M09
69%
240
168
Income Statement | Hotel Segment
 EBITDA increased to R$14.9 million year-to-date, due to better performance
of own and managed hotels , as well as to consolidation of the Company’s
hotel portfolio.
 Trend of increase in EBITDA from the rates of hotel administration.
Hotel EBITDA Breakdown by Service
(R$ MN)
14,9
+107%
+169%
+15%
4,2
2,3
0,1
0,3
1,1
1,2
3Q08 Pro Forma
0,2
5,5
4,8
0,3
1,3
3,7
4,2
4,2
2Q09
3Q09
9M08 Pro Forma
Hotel Administration
0,9
0,1
0,3
Rent
13
0,7
Services and Sales
13,3
9M09
Conciliation Hotel Segment x Consolidated EBITDA
Material reduction in extraordinary expenses originated from merger of LA Hotels
into Invest Tur.
Drop in year-to-date administrative expenses versus 2008, due to synergy gains
between the two structures.
Higher administrative expenses in the quarter due to provision for profit sharing.
Growing hotel segment EBTIDA.
EBITDA Conciliation (R$ MN)
3Q08 Pro
Forma(1)
Hotel Segment EBITDA
- G&A Expenses Holding
- SPEs / Real Estate Projects Expenses
- GR Capital
- Extraordinary Expenses
= Consolidated EBITDA
2Q09
3Q09
9M08 Pro
Forma (2)
9M09 (3)
2,3
4,2
4,8
5,5
14,9
(5,6)
(0,9)
(2,5)
-
(2,9)
(1,4)
(1,9)
(1,8)
(4,8)
(1,6)
(1,9)
(0,2)
(19,3)
(1,9)
(7,3)
-
(13,7)
(7,5)
(5,7)
(12,8)
(6,6)
(3,8)
(3,6)
(22,9)
(24,8)
(1) Considering the consolidation of LAHotels' hotel segment income statement and Txai Itacaré's operational income, the latter
considering the period from 05/01/08 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 11/01/07 to 07/31/08
(3) 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%
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Cash Balance | 3Q09
Company ended 3Q09 with R$272 million in cash
Capex of R$6.1 million and R$9.9 million in share repurchase
Average debt maturity of 9 years
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Agenda
1. Introduction
2. Financial Information & Cash
Management
3. Q&A
16
Q&A
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IR Contact
Rogério Miranda (Officer)
Luiz Medeiros (Coordinator)
+55 21 3545-5417
+55 21 3545-5479
[email protected]
[email protected]
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