STRATEGY

Ticker

 

Selective, Consistent, and Resilient Growth

Vinte plans to continue expanding operations in regions with strong demographic and economic activity, supported through its resilience to adverse macroeconomic conditions. Similarly, Vinte plans to continue developing the Company’s affordable entry-level, middle-income, and middle-higher income housing segments. Specifically, Vinte plans to focus its efforts on expanding its market share in the State of Mexico, Hidalgo, Queretaro, Nuevo Leon and Quintana Roo, which are expected to have strong "demographic dividend". This, in addition to maximizing returns on investments, minimizing risks and reaching greater economies of scale, allows us to continue strengthening our diversification of revenue by market and by housing segment.

 

Financial Discipline

Vinte maintains the same financial discipline that has characterized the Company since its inception. This discipline arises from the Company's support of state-of-the-art technology and its strategic use of adequate funding methods to finance the construction of new, integrated communities. Consequently, this has allowed us to maintain a healthy financial position with low leverage and solid cash flow generation.

 

Focus on Profitability

Vinte will continue to execute a clear strategy in order to maintain high returns on the Company's equity, often outperforming the industry, as it has done in recent years.

 

Flexible Business Model

The Company strives to maintain a high level of operational flexibility in the development of integrated communities, retaining its ability to offer up to seven types of homes in one community at a higher average sale price than the rest of the sector, and adjusting its product offering based on mortgage availability and each client’s financial situation.

 

Generating Greater Home Price Appreciation and Brand Awareness

Vinte will constantly seek to develop and strengthen its brand awareness by innovative products offerings of the highest quality, incorporating a unique combination of factors such as comprehensive urban design, cutting edge sustainable technologies and the promotion of community life. We have won a variety of national, regional and international awards, including the ‘G20 Challenge on Inclusive Business Innovation’, due to our excellent home quality. Similarly, our quality has been reflected in a 5.0% to 9.3% price appreciation of the homes sold by Vinte in the past 12 years, and by the fact that around 50% of home sales have been the result of word-of-mouth promotion and digital media.

 

Healthy Levels of Working Capital Turnover

Vinte considers working capital turnover to be one of the most important performance indicators in the sector, and therefore, the Company's internal control systems will continue to evaluate, monitor and control all the variables that comprise the working capital cycle. To ensure an efficient working capital turnover in the long run, Vinte considers that maintaining a high level of operational flexibility in housing production is of the utmost importance.

 

Non-Speculative Construction

Vinte constantly monitors the performance of pre-sales metrics, which, together with an integral operations department that focuses on comprehensive planning and pre-sales control , construction and home sales, allows the Company to rapidly realign its construction efforts, as needed, to minimize its inventory of finished homes. This has remained below 2.9% of the Company’s total inventory over the last 8 years. Vinte intends to continue to determine its construction numbers through the use of pre-sales metrics.

 

Strategic Operations

Vinte will continue exploring the implementation of strategic alliances, acquisitions of other companies, housing or real estate businesses, as well as other potential consolidation opportunities in the industry capable of generating incremental and sustainable value for our shareholders.