2Q11 Results Conference Call Presentation

2Q11 and

1H11 Results

08/12/2011 > Investor Relations

Villa Flora - Sumaré – São Paulo

1

This material is a presentation of general background information about Rossi Residencial S.A. (“Rossi”) as of the date of this presentation.Information contained herein has been summarized and does not purport to be complete. This presentation shall not be considered an advice ofinvestment by potential investors. This presentation is strictly confidential and may not be disclosed to any third person. There are norepresentations or warranties, express or implied, regarding the accuracy, fairness, or completeness of the information presented herein, which shallnot support any decision of investment.

This presentation contains statements and information that are forward-looking pursuant section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities and Exchange Act of 1934. Such forward-looking statements and information are only predictions and cannot assureRossi’s future performance. Investors have been cautioned that any such forward-looking statements and information are subject to many risks anduncertainties relating to the operations and business of Rossi and its subsidiaries. As a result of such risks and uncertainties, the actual results ofRossi and its subsidiaries may be materially different from any future result expressed or implied in the forward-looking statement or informationcontained herein.

Although Rossi believes that the expectations and assumptions reflected in the forward-looking statements and information are reasonable and havebeen based on data currently available to its officers and directors, Rossi cannot guarantee future results or events. Rossi does not assume thecommitment of update any of the forward-looking statement of information.

Securities may not be offered or sold in the United States unlesss they are registered or exempt from registration under the Securities Act of 1933,as amended. Any offering of securities to be made in the United States will be made by means of an offering memorandum that may be obtainedfrom the underwriters. Such offering memorandum will contain, or incorporate by reference, detailed information about Rossi and its subsidiaries,their business and financial results, as well as its financial statements.

This material is for distribution only to person who (i) have professional experience in matters relating to investments falling within Article 19 (5) ofthe Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”), (ii) are personsfalling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Financial Promotion Order, (iii) areoutside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated orcaused to be communicated (all such persons together being referred to as “relevant persons”). This material is directed only at relevant personsand must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this material relatesis available only to relevant persons and will be engaged in only with relevant persons.

This presentation does not constitute an offer, invitation or solicitation of an offer to subscribe to or purchase any securities. Neither thispresentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.

Disclaimer

2

Heitor Cantergiani

CEO

Highlights

Leonardo Diniz

Sales Officer

Operating Performance

Cássio Audi

CFO and IROFinancial Performance

Renato Diniz

Engineering Officer

Execution – Construction Technology

Agenda

3(¹) SOS – Sales over supply 3

www.rossiresidencial.com.br

Highlights

Operating Performance

Launches (Rossi’s share): R$ 1.3 billion, 73% higher than in 2Q10;

Launches (Rossi’s share): R$ 2.0 billion, 53% higher than in 1H10;

Contracted sales (Rossi’s share): R$ 896 million, 26% higher than in 2Q10;

Contracted sales (Rossi’s share): R$ 1.7 billion, 21% higher than in 1H10;

The low income segment represented 71% of the units launched and 31% of Rossi’s total PSV;

The low income segment represented 63% of the units launched in 1H11;

• SOS(¹) of 25% in the quarter;

Financial Performance

Net Revenue: R$ 752 million, 16% higher than in 2Q10;

In 1H11: R$ 1.4 billion, 23% higher than in 1H10;

Gross Income: R$ 232 million, 7% higher than in 2Q10 - Gross Margin: 31%;

In 1H11: R$ 446 million, with Gross Margin of 32%;

EBITDA (Adjusted): R$ 157 million, 21%higher than in 2Q10 – EBITDA Margin: 21%;

In 1H11: R$ 289 million, with EBITDA Margin of 21%;

Net Income (Adjusted): R$ 95 million in 2Q11 and R$ 173 million in 1H11;

4

Execution -

Construction

Technology

Jardins da França Residencial | Sergipe - Aracaju

5

Construction Technology

Rossi continues to intensify technology use at its construction sites

Lower expenses with workforce

Lower execution time

Standardization

Pioneer in the large scale use in Brazil


171

512

2010 2011

6

(production engineering/foreman/construction manager)

Focus in People Management and Training

Number of employees with profit sharing benefit

199%

Production and quality incentive;

People and talent retention;

National reach.

People development – 1st half 2011

50

210

People training;

Investment in employees;

Training with “Rossi” quality

Knowledge of the production

and technology method


77

Operating

Performance

Rossi Esplanada Business| Brasília – Distrito Federal

29%

24%11%

7%

6%

4%

4%

3%3%

2%1%

Federal District

São Paulo Interior (9 cities)

Rio Grande do Sul

Rio de Janeiro

Amazonas

Espírito Santo

Pará

Mato Grosso

Sergipe

Minas Gerais

São Paulo (RMSP)

Pernambuco

Mato Grosso do Sul

Rio Grande do Norte

Launches by State

8

R$ million

Launches www.rossiresidencial.com.br

Breakdown by Segment (% Rossi) – 1H11 Breakdown by Region (% Rossi) – 1H11

*RMSP – Metropolitan Region of São Paulo

57%29%

14%

Conventional

Low Income

Commercial

Launches by Income Segment

757

1,309 1,328

2,032 387

304 538

345

2Q10 2Q11 1H10 1H11

Rossi Partners

1,144

53%1,613

1,866

2,377

73%

9

Contracted Sales www.rossiresidencial.com.br

R$ million

Breakdown by Segment (% Rossi) – 1H11 Breakdown by Region (% Rossi) 1H11


49%

39%

12%Conventional

Low income

Commercial

Sales by Income Segment

20%

18%

13%10%

10%

9%

4%

4%

4%

3%1%


Federal District

Rio Grande do Sul

São Paulo (RMSP)

Rio de Janeiro

Amazonas

Ceará

Minas Gerais

Goiás

Paraná

Pernambuco

Pará

Rio Grande do Norte

Mato Grosso

Bahia

Sergipe

Santa Catarina

Mato Grosso do Sul

Espírito Santo

Sales by State

710 896

1,376 1,664 195

237

371

493

2Q10 2Q11 1H10 1H11

Rossi Partners

905

1,133

1,747

2,157

26%

21%

1,630 1,603 1,959 2,101 2,006 2,052 2,180 2,364 2,319 2,732

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q1110

SOS breakdown by quarter:

SOS and Inventorywww.rossiresidencial.com.br

SOS- % Rossi (R$ million) 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Initial inventory 1,770 1,630 1,603 1,959 2,101 2,006 2,052 2,180 2,364 2,319

Launches 143 377 873 763 571 757 930 1,090 723 1,309

Initial inventory + Launches 1,913 2,007 2,476 2,722 2,672 2,763 2,982 3,270 3,087 3,628

SOS 283 404 517 621 666 711 802 906 768 896

SOS in the period (%) 15% 20% 21% 23% 25% 26% 27% 28% 25% 25%

Final inventory 1,630 1,603 1,959 2,101 2,006 2,052 2,180 2,364 2,319 2,732

Months of sales x Inventory

17

12 11

10 9 9

8 8 9 9

Inventory

Months of sales

11


Land Bank www.rossiresidencial.com.br

74% acquired through swap

Regional diversificationIncome Segment diversification

28%

12%

12%11%

6%

5%

4%

4%

4%

3%

2%1%


Rio Grande do Sul

Minas Gerais

Federal District

São Paulo (RMSP)

Paraná

Amazonas

Goiás

Rio de Janeiro

Espírito Santo

Rio Grande do Norte

Ceará

Santa Catarina

Bahia

Sergipe

Mato Grosso

Paraíba

Pernambuco

Alagoas

40%

23%

14%

12%

8%

3%

Low Income Segment

From R$ 200,001 to R$ 350,000

From R$ 350,001 to R$ 500,000

Above R$ 500,000

Commercial

Lots

30

+3

+10 43

Land Bank (Total + Norcon) - R$ billion

2Q11 Norcon Rossi up to 2013

Norcon Rossi

after 2013

2Q11 Pro forma

43%

31%

26%

Unit Swap

Financial Swap

Cash

121212

Financial

Performance

Rossi Ideal Torquato | Amazonas – Manaus

13

Financial Highlightswww.rossiresidencial.com.br

2Q11

Net revenue reaches R$ 752 million, 16% higher than in 2Q10;

Gross income totals R$ 232 million, 7% up on 2Q10, with a gross margin of 31%;

Adjusted EBITDA totals R$ 157 million, with an EBITDA margin of 21%;

Adjusted net income (³) comes to R$ 95 million;

Cash burn (4) reaches R$ 198 million.

1H11

Net revenue totals R$ 1.4 billion, 23% more than in 1H10;

Gross income amounts to R$ 446 million, 22% up on 1H10, with a gross margin of 32%;

Adjusted EBITDA (³) comes to R$ 289 million, 12% higher than in 1H10, with an EBITDA margin of

21%;

Adjusted net income (³) reaches R$ 173 million.

(¹) Sales net of rescissions and cancellations (²) SOS – Sales over supply(³) Adjusted for non-recurring selling expenses(4) Cash burn excludes non-recurring expenses and securitizations

10595

167 163

2Q10 2Q11 1H10 1H11

159 157

258289

2Q10 2Q11 1H10 1H11

217 232

366

446

2Q10 2Q11 1H10 1H11

649752

1,140

1,408

2Q10 2Q11 1H10 1H11

14

Net Revenue (R$ million) Gross Income (R$ million) and Gross Margin (%)

Financial Highlightswww.rossiresidencial.com.br

7%

33% 31%

EBITDA ¹ (R$ million) and EBITDA Margin (%) Net Income ¹ (R$ million) and Net Margin (%)

22%

32% 32%

-1%

24% 21%

12%

23% 20%

-10%

16% 13%

-2%

15% 12%

16%

23%

(¹) Adjusted by non recurring expenses related to “Rossi 30 anos”

R$ million 2Q11 1Q11 Var (%)

Short Term 864 694 25%

Construction financing 686 611 12%

Working capital 156 65 141%

Debentures ¹ 22 18 25%

Long Term 2,169 1,393 56%

Construction financing 1,652 1,025 61%

Working capital 67 89 -25%

Debentures ² 450 279 62%

Total debt 3,033 2,087 45%

Cash position ² 1,357 802 69%

Net debt 1,676 1,285 30%

Net debt/Equity 62.3% 49.4% 12.9 p.p.

29%

71%

Short term

long term

146

167

133

100

150

2011 2012 2013 2014 2015

Debt Breakdown

Debt Profile

15

Debtwww.rossiresidencial.com.br

Amortization Schedule (without SFH) – R$ million

¹ including debentures with Caixa

¹ Excluding debentures with Caixa

² considering the operation involving the securitization of performing receivables, with no right of recourse, totaling R$ 50 million in June

77%

16%

7%

Construction Financing (¹)

Debentures

Working capital

Debt

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Equipe de RI

Thank You!

Cássio Elias AudiCFO and IRO

Adriana GodinhoInvestor Relations ManagerPh. (55 11) 4058-2500

Gabriel Spera BorbaInvestor Relations Analyst

Ph. (55 11) 4058-2502

Paula OliveiraInvestor Relations AnalystPh. (55 11) 4058-2503

[email protected]/ir

http://www.rossiresidencial.com.br/ir

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Q&A