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EZTEC´s main competitive strengths are:
Experience in the Market Segments in which it Operates and Ability to Anticipate Market Trends. With over 32 years of experience operating in the segments between the low-end residential and the high-end residential segments, and it has managed to anticipate market trends to adjust its portfolio, seeking to maximize profitability. The management´s broad experience and competence provides the ability to create products with architectural innovations and to identify the best opportunities in all price ranges of the residential real estate markets in which it operates.
High Profitability. The Company constantly focused on maximizing results, having posted profit margins around 40% in the past seven years. EZTEC believes that its relatively high profitability results mainly from the following factors: (i) expertise in acquiring strategically located land at competitive prices; (ii) low operating and administrative costs; (iii) ability to identify and develop products appropriate to the land acquired; and (iv) the high sales velocity of launches.
The Company is permanently focused on maximizing its results and has been recording net(1) margins of around 40% over the past seven years.
Differentiated Process of Land Acquisition with the Involvement of EZTEC´s Experienced Management Team. The Company´s philosophy is to have a business model focused on land acquisition, operating carefully and seeking to maximize profitability. For this, it relies on the experience and direct participation of all members of a senior management to identify opportunities to purchase land, to value the land and to negotiate, which allows the Company to obtain better prices when able to act more quickly than competitors.
Brand Recognition and Credibility. The sales velocity is largely due to the recognition and strength of the “EZ TEC” brand, which has credibility with potential buyers. Customers´ satisfaction with the high quality level of products and services promotes the reputation in the market, as well as customer loyalty and recommendations to new customers.
Efficient Business Model of Integrated Activities. The Company operates in an integrated manner, which allows to manage and control all of the stages of development. This integrated process offers the following advantages: (i) Minimization of costs at all steps of the process; (ii) Increased purchasing power with suppliers; (iii) Flexibility in the creation of products; (iv) Operational capability in all of the steps of the development and construction process; (v) Better adaptation of construction schedules to cash flow income; (vi) Better quality control during all the steps of the development process; and (vii) Better knowledge and understanding of the consumer.
Management of the Receivables Portfolio and Granting of Credit with a Commercial and Strategic Focus. Credit enables sales in the real estate industry, and customer financing is crucial to the business. The Company seeks to maintain a flexible process for approving credit to customers, mainly in relation to credit analysis. Due to the expertise in providing real estate financing, the Company is capable of: (i) identifying customers with the capacity to make payments, and (ii) rapidly approving credit to the customer. Because a large part of sales are made before construction, it allows constantly monitor of the timeliness of customers´ payments to create a payment history, rescinding contracts where the customer does not demonstrate financial capacity before the delivery of the keys, and to minimize credit risk on the loan.
Rapid Pace of Sales. EZTEC only launches developments with proven demand in order to avoid compromising the Company’s cash flow and increasing the level of inventories. This is because until construction is concluded, the Company receives on average from 20% to 40% of the total amount of sales, depending on the profiles of the project and the buyer. EZTEC uses these funds paid in advance to make the required investments in the construction of the respective project, reducing the need to inject own capital and the dependence on bank loans”
Solid financial position. The Company’s capital structure has low leverage, which gives it the flexibility needed to grow consistently.