GFASY - Earnings call transcript Q3 2020

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Operator

Good morning ladies and gentlemen. And welcome to Gafisa's Third Quarter of 2020 Results Conference Call. Today, with us, we have Ian Andrade, Investors Relations Officer VP of Finance and Guilherme Benevides, Operations VP. Mr. João Pedro Figueiredo, Corporate Law and Corporate Governance Manager and Mr. Relations also Investor the present [ph] session. Q&A Fiena Manager be will at Daniel to that inform being like would We you recorded. this is presentation [Operator Instructions].

the operating events. Any I inform in macroeconomic uncertainties Before like laws changes affect may management's and the or that performance. other and future begin, risks, may statements to we refer policies involve results would you to company's

floor to Andrade, turn would floor over The Andrade like good Ian Ian Mr. to the yours. start I presentation. Now Mr. the is morning. to

Ian Andrade

launches, Thank XXXX now and worth that how X the past we consistence occupancy you projects we're learn operating results PSV with in over performance about good deliver delivery this be the to works, our again in plan you interest X And the sales, news recovery permit quarter. of will reflecting to morning, increase. company best in XXXX year. everybody. Benevides two XXXX, for for applies to to participating obtained your have Thank delivered also PSV we and occupancy land much XXXX. projects give was billion X XXX% to the in and time, very R$XXX consistent once XXXX this totalling much. in delivered projects our delivered going projects already units permit year-on-year to R$X delivery increase XX call. the the more recorded it a like deliver. with to We comparison. the almost you good about showed acquisition. with million mentioning and have deliver in sales, earnings for ability We Guilherme would for quarter-on-quarter million construction is launches R$XXX the is your highlighting same very We year. in sales And our in The I fourth our sales you XQ journey.XQ two thank totaling and brings years, and results XX It

project launches, resuming schedule. after that with Perdizes, a resumed and Normandie deliver to new to significant ahead High going third are of it now are the without years XXXX, in quarter comes projects, we When Chez of launches, all three Moema Line We launches totaling the Line in increase way these R$XXX levels Jardins, in we São all the liquidity located Paulo. Moema. of of Jardins, of PSV to end XX% regions, in good million, Perdizes, report today XX% the of with launches city and in healthy High Chez high-valued of sales, in them third Subsequently Normandie the in quarter, three XX% a

XXXX. return because two in in already million the Paulo with X our the in our to of second are with the our differentiation. And projects the second billion city with Gafisa’s of We Campo with the and of PSV an and definitively months. will R$XXX it For last in R$XXX Janeiro, S.A., those the landbank in in and Upcon city level have acquisitions other differentiated of São in in They PSV. Rio pandemic. G&A have of with in quarter, business we Calçada R$XXX in and in an in projects. totaling launches in our R$XXX years. and we the to of are an in performance, half launched the we of Janeiro impact year approximate And launches, quarter, bringing with we million the And PSV real million, R$X plot brought related of one PSV the Paulo de to developments. the with With to with on new of have core months, that pursuit acquire concluded the higher outperforming and of those of line to are the when half Butantã are year plots Calçada are in the new performed Moreira, with million have district, performance de comes São R$XXX negotiations Avenida R$XXX billion launches R$X our to R$X over Delfim exceeded operating a sets XX the Upcon billion the past in PSV in results acquired going in that district, estimated acquisition to from after with projects and the happening of four Still also Cyano highlighting million The land land level estate a at launches of next always X in another we our the the an estimated results three iconic launches Vila bring million. we with PSV projects Mariana project also core Barra of PSV for R$XXX million. XXXX, for our launches fourth PSV, business Rio Belo, then all

Now, let's markets. the new and talk about initiatives the

estate context and actions we new core the yield, become of in a even we negative, with Gafisa real individuals in properties. income Gafisa real the and beyond From up real Here cycle rates set Furthermore, as business, of balance its relevance of assertive executing investments new the has the estate nearing unparalleled estate interest investors. portfolio convinced high its transformation Within to estate of and credit real business strategic its or investment with growth a markets, are that become are have estate sheet, and estate plan, core platform go historical lowest institutional market a increasingly this real at market, activity development. development line its real fixed growth development. reaching solid is to Gafisa and the of its investment virtuous growth low Gafisa, levels, in

profitable Gafisa’s real and leasing also across flows its estate clients. spectrum, are and Gafisa units, start Gafisa up’s for such as investments technology shopping become to innovation and services partnerships for upto turnaround to acquisitions are own new developing We with real small properties the and square assets and malls composed this offices, residential under a and/or to we example, assets XX meters of portfolio built and will or through of focus offices, a units residential with opportunities. in stores bring locations on new assets estate And construction hotels. going non-replicable, have

held a explored the we synergies real that its Gafisa ecosystem to As according far assets will by our transforms estate estate business concerned, sold vision be platforms assets expertise Gafisa Gafisa’s properties or lifecycle, assets real models into to real and is throughout as innovation and background clients. market pursue to to apply estate new by end business whether

that as our for We are markets, in modern in in which company such way these business with boost confident that more traditional and growth in we the that is in to sector actions businesses our bringing estate, to new aligned capture dynamism a brand, a shareholders have also the but our traditional core dynamic and real will innovation value Gafisa. allow our is

very and cycle. dynamic, We type that to proposition everyone by a and We value way pursue Brazilian are brand, in a a we're interest that grow of rate going that real want growth. based Brazil. low on and businesses recognized in to and estate strong believe that in assets is Gafisa new innovative business a model with modern, is we

comes capital million. the to level projects we over in the And with the our In related that to of show are have in August highlights, when increase of being presentation delivered it balance in according X% healthy the that sheet the that company. improvements we the is and highlight our one that we financial receivables we de-leverage XX% When from to equity, XXX% our going a with now R$XXX comes to I of the to shareholders company. their debt cash to over a that, year, later of R$XXX which have construction brought Now at cash and total covers that XXXX, under company to schedule. you believe it to level went on and in the is

all our financial have the estate a interest. security have our of our and it our to launches besides construction and will and backlog products. And projects XX%, for decreased flow operating today, made those to repay solutions, R$XXX comes be deliveries also the we preserve backlog to in contracted. levels, and healthy the results our So receivable financing levels, according with highlight those are it believe conservative approach to is the million a real highlights, to issued million estate we comes equity R$XXX with that in source when around other for improvement and discipline, were margins We R$XXX which that in million pricing also are works having cash debts, shows also at I inventory. corporate real we million of for although contracted to the gross launches will raised and debt debts, be construction consistent When Delfim gross that R$XXX And company. progress that future Moreira and cover good certificates, old of it at contracted margin of which our of show launches [Indiscernible] because the provisions

administrative growing that realized was talk our and XXXX. performance general It its legacy worth R$XXX third the in the practices the continue third we management to highlights. drop reflecting accounting quarter, am efforts million still in later the in Guilherme in to impact, a have I like the conclude will our also and fixed cash going to expenses, now though to current even about restructuring. our floor expenses. operating over also results no to been and discipline talk recurring would We management non-recurring on who in good mentioning with administrative XX% And of we turn I adjustments, company's decrease financial Benevides there financial the And about the quarter is

Guilherme Benevides

the very in much morning. participation call. your the operating for XQ company. you see you six, can good conference On of Hello, Thank earnings results slide XXXX our

focus volumes can on present XXX sales billion seven, You can is million of R$XX to in increase inventory Moema, to On in fully for sales Chez fully launches, Perdizes our trained our to November, the fourth against over in shows we sales. XX% the that which It that .By that its XQ Line see X slide able with quarters, sale in the up [Indiscernible] net an XXXX. committed with million the you XXX% sales. add are committed. And third High we in sold and R$X.X units, Jardins, in over operational across our pleasure XX% XX% consistently are XXXX see XXXX XX XX% we is of proving launches of XQ Normandie and project results our will in employees grow have the to force R$XXX

that of shows were on which an had improvement and hand are our units X.X% every we our also XX% We increase XX.X%, side, quarter. slide SoS that in over eight, our inventory. sold the indicator over see construction see can XX% under And that units pursuing of sold. delivered were On can our right an to of in you you

the have we XXX in you see accumulated finished that and left, construction inventory XXX the with units. On can under

can the are inventory that XXX in of regions, the region. XXX country. and the into out present segmentation showing units by billion office you the On other right, Janeiro see São are in city total the in Rio of And we residential, Paulo, R$X XXX in de and of in wealthiest inventory XX of

with Uplife see year nine, Interlagos XXXX. and Now XXX can in units our XQ delivered XXXX in on deliveries in Paulo the million with Freguesia PSV. you delivered We in São slide Moov

and the with slide projects X the on can showing ability you a management PSV the units schedule XX, our Now million commitment have X,XXX we showing of deliveries, of to company's shareholders. our expected R$XXX delivered see of

acquired the year. our projects the of the amounts bank overlook under R$X.X water, terms or that have for already next we also that you that plots as have added to of two an have already billion year land back and almost the came your luxury R$X occupancy billion high short And acquisitions. Andrade, XX% that you And making already The that, over Gafisa R$X.X of in to highlight projects approved is with back And we Rio, Rio Avenida approximately company We IRO. Ian have end recent in the and of through Janeiro plots to estimated acquiring services, across land we ecosystem. permits those occupancy participation our and platform the XX% already got adding We would delivered, here the it expect to we And Janeiro. best four de to And plots I for already and Mr. mentioned, and innovation to Thank and results land PSV obtained project. at On enforce I products will projects we with our permits And last like billion. the XXXX turn in develop we in thorough Rio PSV it. can Freguesia Delfim Moov commitments de estimated been all see re to slide XXX and of PSV. for entire units or estate it are medium very for is and to a going the have Moreira one a the been in much we floor this and XX, have has for permits. Ian approval, deliveries. our XXXX it of we to project real good approved CFO land

Ian Andrade

Guilherme. hard we significant. very work that the Indeed, been results you very have much, it's are and Thank doing

So go slide financial team. you numbers. made to When congratulations show the our effects of any quarter. this the performance, our it Without the without to adjustments to excluding non-recurring your you comes and to XX let's adjustments,

and R$XX going But have in margin in the to When necessarily you see here. going increased reflecting excluding mentioned, backlog we're the that's recognize quarter, non-recurring margin in future. accounting as case of have the million that And increasing And gross sale to our effect, recognition also our are Our effects other our in related decrease we by XX% we is gross increase and next of behave it margin R$XX and in that the an expected. reduction I you When net in in also million That the XQ on. points our we it R$X later with from our adjustments. to is of sales, effect margin how gross of that in in not that bad margin comes million will accounting analyze an see most to And which profit, the not are gross XXXX suppliers. sales. our this increase adjustments prices. in our R$XXX sales do no is and suppliers addressing caused to for They adjustments and legacy. And they those the XX% and And and owed adverse longer results adjustments. effect impact finishing increase, slide revenues in are the million. on naturally that and of caused non-recurring were We our payments And will we who reduction was in profit you we debtors revenue by in non-cash is increased to of legacy that adjustments. of the needed efforts we right. The effects the future. can are restructuring recognition, revenue, allowance

negotiating the squads over methodology, of Agile the forces the when us finished Now of [ph] number hard legal, to lawsuits an comes it past we working interdisciplinary addressed. in And people a it problem XXX,XXX where we and finance in lawsuits past initiatives. very end And XXX,XXX have year. including have are we lawyers, of being in for that solving addressed, multidisciplinary, And the on is they and way. platforms being months, by over the have is we target and the company working negotiators,

I also And lawyers, doing. growth that that we trust that to have we that are we we decrease is what remember XX% management. to So launches going to reflects XXXX. work sustainable, going in strategic. in current the that comfortable, sales comfortable. negotiations that and would sheet have And healthy, our the bring is balance had we we We top to have. are in we in the reinforce also to it because of engaged And And level the is experienced addressing lawyers notch of that lawsuits a lawsuits that in are us important and are very starting been our we're like the profitable

Now going to slide XX.

you nine effects the was our XX%. margin, exclude can margin you And mentioned, details gross the which adjusted XX%. adjusted Here, margin, in about it some that more is line last months, you which I see see That's our our about in with is is XX%. When gross that our margin. can gross backlog

said not we we that that has launching our I new products a that that's wanted, As earlier, shows are two portfolio, portfolio is although and the next why what for years.

that we Although to the want, line we are margins in are our has what good volume we is what is not future, the now it what superior below going in to or competitors. recognize even a are recognizing

we structure it but talks XX that can company when and our what continuous products R$X next this the about as on it to the operations of have this is of that see our we said, months, about costs by launched will is as controlling of of XX, costs he we the the and efforts that mentioned, result, that Now terms terms bank. efficiency. quarter, is remember moving in in land developing should acquisitions, have the which which XX is XX%. month. we And future our is and And already be is long decreased you condensing term slide structure recognized also medium to million pursuing per Guilherme in And fixed volume same

XX, you details Now of our can on slide the see debts.

temporary the related bridge of capital we working As million debt, that effect loan impacted R$XX we R$XXX million a of because million is refers XX% But securities certificates. capital. said a and is to of to our R$XXX out earlier, have is total working projects, by that

before signed in as projects and we to have R$XXX the cash. the naturally today take see shareholders is proposition had sense that want of be showing said ready and earlier, issuance And not third our the to increase are we of presentation. to The to capital. willingness is you you the the working smaller the quarter million year And we used quarter, transparency third and related have we because and this capital, capital our We with we at to fourth that going bridge of of increasing strengthen this going presentation debt questions. we Gafisa. that, to we were the are you -- our our loan and to working that and conclude So your for prepared company's we that that of here provide convey capital

Okay, so session. our going Q&A to now have we are

Operator

We Montero your Ginebra from can Raul Capital. you Instructions] Mr. [ph] [Ph], have question [Operator please, with one ask question.

Unidentified Analyst

I moving the to if which model. are new Good Am morning. snapshot a company years? I creating Hello. of restructuring are and moment the the where know and would that to towards a new if that’s like know right? next is would the EBITDA you for company dropped, and I losses we the the like it's current expectation The is

Ian Andrade

exactly That's case. your Raul the is accurate. question Hello, very

problems results And we adjustments this strings related the adjustments are reflects serious grow we that you the about up had adjustments how Our that quarter to in exactly that's reflect are restructuring they past. any that agenda. made in to again. the past quarter company having to for solving non-recurring what will and we without made, happened be we not were in what can said. our the attached the this future cleaning so happening the have Those Those

Unidentified Analyst

very thank much. Okay, you

Ian Andrade

Our pleasure.

Operator

from question Marcello, a next comes shareholder. The Instructions] [Operator Mr.

Ian Andrade

Marcello. morning, Good

Unidentified Analyst

by give media. would the about I Hello, like color more some good that were to morning. purchases you published the

Fasano Itaim acquisition Bibi São Hotel finished? the shopping Rio those and de Were For in Janeiro. and are Paulo mall purchases in those example,

Operator

you is connected. speaker our that believe Are I yeah? there, not

Unidentified Analyst

Janeiro Rio finished? purchases performed the if you in had you São asked that that I Hi, and were Paulo de

Operator

are speakers our moment. that not at think connected the I

stand seconds speakers So for reconnect. our please, let's few wait to Please as reconnect. them by a

Unidentified Analyst

question? we I'm Did difficulties the repeat? Hello, had Should we technical some you here. sorry, hear

Ian Andrade

No. Yes, we it. heard

can So questions? you Marcelo, repeat please, the

Unidentified Analyst

were the to would like acquisitions Paulo mall, This if shopping to de is of now publicized. and the if hotel those know, finished? the Marcello. know Janeiro I the Bibi media would I in and São acquisitions as like Rio Itaim and

Ian Andrade

been non-biting The stage that they acquisition been it Fasano Hotel [ph] concluded, I it been Paulo yet. has And is the so advanced. today, at more the of And a of finished. concluded yet, has São transaction not finished. been acquisition in shopping is believe has mall is not have that It

Unidentified Analyst

Okay. very Thank you much.

Operator

from next The [Indiscernible] from Nicolas comes question Mr.

Ian Andrade

believe I Nicolas, good you mute. morning. are Hello, that Nicholas. on

Unidentified Analyst

very company's would Because piggyback to like are Thank to good you topic. on strategy for questions. about and Hello, company's We of the would acquisition morning. the which comes much to know development is assets my to last assets. really more taking the the like when business, core not it construction. those related those I

understand like would bit strategy I when is, what a little to those comes your to So better it acquisitions?

Guilherme Benevides

Gafisa those related acquisitions to business. The to Okay. properties, our is strategy new related

turnaround thesis acquisitions terms we for that strategy in replicated two of finished The cannot sources when or acquisitions, in are to that And in units here assets not stores of our that that our for shopping our the that about we offices portfolio. Gafisa and comes of location and investment Our talking including being they finding are we developments. opportunities. profitable. of and course, to published by already the small built already they they by but and assets, market, Hotel, the to strategy Fasano the assets been residential be portfolio income assets were And related and have have will here have Gafisa of be have that malls are new yet it

has it de are in we a it his is in that turnaround excellent. And investment that asset, it mall shopping And a Janeiro major Rio And location checks large is districts. replicable, an mall. it also going beach. to So a that the that it district and connects is as two vocation is restructure asset is in lost is is The to is fashion because boxes a And because thesis. location our it close not the two product. very in

part and the with purposes mall. And any that a we lower right great in was valuation it purchasing Fasano an time, are the long management it that And other It going tower, the a don't is backing is that And residential to de purpose. the asset to turn be we going than is Hotel serve purposes. is for good São healthcare population. we very that's may time. the part going going It going construction cannot up. that mall it to related in are profile can is Rio outside for will us. shopping we is smaller other to to as be a be anymore. neighborhood going region more It -- redirected delivered around. of of a the Paulo area purchasing not So, is is a to which long shopping to be different the that's size before. And We're decrease shopping to mall for assets replicated. targeted asset high-end And -- at now. have location, a And the the educational going dedicated other it are we best has that be consolidating And will great to And or to location. of And multi the asset mall, And use asset uses. that purposes is shopping box, valuation. have has guarantees as the in other performance, a in Janeiro. as the the mall invested is risks purpose who assets a it It asset for are asset. in it we checks neglected of the It current assets. to a turnaround management the current a it management, a invested the that is not build shopping And asset by so it not we be

that's high is So which ready it performing. is asset to it end is brand, start with And a Fasano. an associated

the the expect we become to operating. as related Fasano to asset. believe have assets going Paolo. in the more is don't these And And San construction remember real Hotel that it we that is to that asset we risks any that best So estate marketing starts valuable

Unidentified Analyst

very Okay. Thank you much.

Guilherme Benevides

Nicholas. you, Thank

Operator

comes Mr. Enrico [ph] with question from Norte next Capital. The

Ian Andrade

morning. good Enrico,

Unidentified Analyst

the Hi. accounting know am and other exclude adjustments from Hello, what good would be? And to if result morning. would we Norte allowances, I million the like I R$XX Capital.

Guilherme Benevides

would million profits. It be R$X

Unidentified Analyst

R$X million.

Ian Andrade

are allowances R$X exclude r$XX other exactly. The the and that Yes, the items we are past. Yes, million profit, be That adjustments. million. would accounting net the provisions to the R$XX exactly. And Yes, million. if related

to left are S$XX the So are accounting impacted adjustments, in the you are have in by would what amounts that million. And million that million past. you R$XX we with happened but have they And S$XX here from subtract items be losses. not

we of if R$X exclude a So you those, profits. result have would million

Unidentified Analyst

Okay.

Now, why I am much. able separate really asking that? adjustments again? I is was very But because accounting I'm the And results. name your you asking the what to from thank not

Ian Andrade

Ian.

Unidentified Analyst

Ian. much, very you Bye-bye. Thank

Operator

from [ph], [Operator Etalu, Instructions] Mr. The next question Etalu comes shareholder. may a you proceed.

Unidentified Analyst

Hello, good debt question the structure. I about the morning. Congratulations presentation. have on a

Now the with a your new capital cost increase, of is what average debt?

Guilherme Benevides

the loan at also Delfim X%. cost Yes, rate X%, the our Including for plus CRIs, Well, the Real about is Moreira, CDI plus we average new and the were issued rate Estate issued Receivable X.X%. Certificates. well, with CDI certificates these

that have X%. X% rate income plus that CDI are other about and X.X%, fixed also believe related funds, other to are bonds We about CDI that or they to bonds, all the other X% plus are securities plus I

cost, raising of below cost. is the we that average are our average the money So course,

operations, And cost moment. or guidance the about great? properties. And color and reducing average is the Our the the about that some at new of is the give -- Gafisa be the could size about would us it profitability initiative, you some

Ian Andrade

opportunities Well, because initiative, assessing the guidance prospecting have. we unfortunately, We're that about early stages. I in cannot it is still assets, give its still that business you

development properties, next cannot real the guidance the guidance. not business. we are any estate this provide going whole, to early a as also core but we moment, you business for Probably at So as give as year, only the well company

us accurate month. details more would some And So next when it because you still to a we we in to those guidance months, expect the are disclose about comes I finishing for to that. with like bear guidance,

Guilherme Benevides

Benevides. Guilherme is this And

Here independent properties a it but company. an is Gafisa is Gafisa company,

like We you estate moment. at assets are properties funds. are any in to are cannot working we estate on that real also pursuing we know sector. provide with working we And also and the new this would But you real funds. Gafisa guidance I the And income

Unidentified Analyst

about us you to become? to how business could want give And significant this or color you some be

Ian Andrade

our of impact dynamic. construction. us for be is It together brings makes investors. assets us. so everyday very Well, an Gafisa be more clients very used alternative It and we going strategy operations, for for active. Or important business can our a this be under it our properties that to put options to in to business for It our is more better can relevant,

It's in in of terms I next R$X to together not assets, that in XX% exceed a new R$X.X going months. than because And our going the XX% to shareholders assets. I'm higher think Now, equity whole. okay, income of shareholders in numbers, are is billion. that about potential talking the have development have billion they as with projects over business exceed And equity, XX business leverage we not of

Unidentified Analyst

you overall expect be allow they to volume Or legal in one you great? what of about what if be the those with for us normal give me level? expenses, would last About the question. ask expansions, expenses, that would future if those do volume, your a could And guidance you lawsuits, for expenses some the the

Ian Andrade

when the six that that should any it have lawsuits. reflects have adjustments six Well, the I don't we made doing months, in to and some that of about for allowances we that three we this think not the comes allowances settlements those past months, been made guidance for because of provide months, the work quarter the we our

allowances good. believe trust for allowances those our made we correct We that very that are lawsuits. I So the

Unidentified Analyst

Okay. very Thank much. you

Operator

Sarte. [Operator from Paulo Instructions] [Indiscernible] Mr. next comes Campos [ph] The question with

Unidentified Analyst

and from Hello. Fasano model, wanted schedule? [Indiscernible]. the Good mall like Campos also I more Paulo about the the know more acquisition shopping about morning. model. payment Hotel to I acquisition would know This to is

Ian Andrade

we transaction, process an Hotel due-diligence Fasano The option, option it the of our Okay. and boards. have to includes an approval subject it acquisition a is and

are in the it if go to advanced transaction. the payment up will confirmed, pretty Fasano And Hotel We for that December. flow is

December until have will pay. to We

Hotel R$XX million million back. final for are We due-diligence, have paid as the the end get option. the have if to reason of if XX% any to confirm be confirmed the itself, the December. we of during a of And the Fasano acquisition And made those is to the prepayment it payment going by does we'll transaction R$XX for get not amount,

Operator

believe bear standby a for few has speaker just disconnected. and moments. a that us moments. Please our I for with wait few Please

by our technical our reconnecting. reconnect. stand are speakers a they by speakers that few we I the had some technical for stand while that problems. I'm sorry, speakers Please believe moments, difficulties. Please reconnect. our While believe reconnected. I had

And So answer? Asset here Angel Paulo, you our with [ph] is did us. get Paulo from

Unidentified Analyst

the know But I about shopping about answer got same Fasano to like your would Yes, malls? thing the the Hotel. I

Ian Andrade

the about talked December, payment, with to end we I in this investors Fasano us that which has by of together Hotel transaction. And the happen right? have

XXX% going to not own the of assets. are We

Unidentified Analyst

had not Oh, I gotten that.

Ian Andrade

Yes.

check sign if transaction We of by end confirm cash. to structure the every December. other include well. is process, after from final will to corporate have million make not And investors due-diligence we the R$XXX going payment financial finish the we the our if the the Gafisa transaction, as

XX% shopping to exposure will to our also already two longer. that when for have finish to going the term, asset by will payment we the assessed comes have identified. exposure, owned leverage is XX% the terms And the in Gafisa's be and it expectation rest the and malls, investors be in the us of are And stake to alternatives. We transaction

also, the the due-diligence need finish approval the Antitrust mall. the is estate assets the leveraged. since They are have by Bank Itaú longer real to that process. And authorities. And a the of the acquisition, have two corporate and consent fashion And we behind is and investors we it transaction. We acquisition need

happened transaction have confirm transactions want year. they assets that going XXXX. are are two still that we And Gafisa this since will the to we I those to the two believe in capture of is that if So opportunities third And that reposition we well have debt. quarter to disbursement I assets. the mentioned. cash confirmed, don't The from

Unidentified Analyst

much. very you Thank Okay.

Operator

Okay. The from next GB comes question XX:XX Invest. ___from

Ian Andrade

morning. Good

Unidentified Analyst

the on in Good and those of materials, Guilherme. that Ian increases raw example, saw your steel. think going good of an some have to margins is price you for gross impact Do morning. morning, Hello, the and schedules deliveries? We

Ian Andrade

purchased beforehand. the we negotiated suppliers beforehand, and we raw also Well, with materials

the we And costs supply that to But we beforehand going entire since solution constructions. that control. start to allows new to purchase with So cost are under materials the of also volume relationship a raw chain, is materials. raw have and we strong keep a have of for to attention and are as the large constructions paying us

We have control. under good read the for future, costs and negotiations with suppliers for keep now we so that can

Unidentified Analyst

Okay. Thank you much. very

Guilherme Benevides

pressures that and came agreements cost had we to unemployment But right all not past, in raw a And we shifts the cost terms INCC pressure, NCC period, us in what the capture pressure the the XXXX, we differently as for that purchase compliment capture about to to happens in are pressure rates. does past in from [ph] example, related our pressure From the workforce. have developers, cost the the cost and didn't index that just the of what level concrete, that INCC index now XXXX from construction steel, the copper, for or of that that labor here not had sorry, And does index effective the a course, index the cost of in is regret create really happening because we financial we that had. increase. a happened Brazil. materials, is standpoint, any increase we had INCC labor plastic, capture for of where And, very Today, the problem. workforce. where cost we And and as

Operator

Fabio. floor Fabio Mr. Okay. yours. from Hello, is maybe question individual next The The [ph], are shareholder, a comes Fabio, mute. on shareholder. you

Unidentified Analyst

results comes had your quarter? about Tecnisa. the morning. when also have good Hello, impact does And Tecnisa negative of strategy the it on stake to you your third the that in is acquisition question a in My

Ian Andrade

not of were the acquisition. Well, format defining it is the an still We really acquisition.

So the Tecnisa our is reader. transaction still in

by believe in different We now but the with shareholders we approaches, are that. of Tecnisa. that a there relationship value still we having we believe considering and in to are two is be We the And interested some significant interested assets. captured business sort are still

up when believe said there forward other are amicable is we given asset, we to only transaction. possibility on As this that we on no with move occasions, that

a amicable hostile are don't are hostile. situation. We it is, believe Because have if It -- to to going both that cannot Gafisa. we want acquisition. going would and going And detrimental not Tecnisa be to be not we that. are an to have we We

approach. So an the transaction is moving to forward. And amicable we trying are find still

stake that stakes Now results stake Tecnisa. when Because impact quarter. it our of are is strategic speculative do And the shareholders we X% since in that third non-financial we management with it Tecnisa our have the third line quarter rather. stake in that on a our to have still in comes of a results, investment. significant participation, And is not in in hold. influence we at It the the we Tecnisa that investment Tecnisa, are an impact

we we in stake So nature, have is since have results. of a any not stake that we not stake, from impact quarter that third our that that believe speculative and since did

Operator

here [Operator Instructions] We to have your the Gafisa's questions. ready team take

you Andrade remarks. please, Okay. may If would to questions, Ian there to proceed. the Ian, his no turn I closing like over for more are floor

Ian Andrade

time and call. Thank your you participation very much conference our all for in earnings your

business. in We those we conducting the proud way Gafisa's present to results. are very are very are And proud we

single decisions, with growth every And from We are at single platform of Gafisa developing products managers. the real to make estate that attention we discussed the the now way discipline way boards are in Every detail level, financials. the that the we is details. in manage a our at pursuing every here we acquisition

in becomes stronger, are the that is we that it resumes Gafisa's business that it leadership that and market. its Brazilian so it position conducting context So in

thank with turn so very I'll much the over And you for I floor to that, all remarks. like his closing Benevides to would and Guilherme

Guilherme Benevides

doing for all we much Gafisa. you what very following thank are and at Well, here for asking questions

platform, Gafisa focusing other can We great on course, across for also offer on on our services but a environment. the business, we and that making real real estate a development estate so of are fully businesses entire types products, all of focusing focused

fully day. have to very back we thank be shareholders. been an delivers transformation results once innovation. are a The Gafisa's company, and And position us. innovative committed so that that can on we all much our take to regaining again, that company we based for its for as So shareholders to a participation. want you trust is your important extremely trust, Have good We

Operator

you that, XXXX great call. conclude With conference Gafisa's earnings And have all a much. very XQ we afternoon. Thank

Gafisa (GFASY) 17 Nov 202020 Q3 Earnings call transcript