Discussion Material November, ParkShoppingSãoCaetano São Caetano (SP) 1

Transcription

1 Discussion Material November, 2017 ParkShoppingSãoCaetano São Caetano (SP) 1

2 Disclaimer This document may contain prospective statements, which are subject to risks and uncertainties as they were based on expectations of the Company s management and on the information available. The Company has no obligation to update said statements. The words "anticipate, wish, "expect, foresee, intend, "plan, "predict, forecast, aim" and similar words are intended to identify statements. Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors and values that can establish these results are outside the Company s control or expectation. The reader/investor should not make the decision to invest in Multiplan shares based exclusively on the data disclosed on this report. This document also contains information on future projects which could differ materially due to market conditions, changes in law or government policies, changes in operational conditions and costs, changes in project schedules, operating performance, demand by tenants and consumers, commercial negotiations or other technical and economic factors. These projects may be altered in part or totally by the company with no previous warning. For more detailed information, please check our Financial Statements, Reference Form (Formulário de Referência) and other relevant information on our investor relations website ir.multiplan.com.br. Note: All financial figures presented are in Brazilian Reais (R$). 2

3 43 Years Focusing on Quality Full-service strategy: Multiplan plans, develops, owns and manages its properties; Long-term planning: Expansions and intensive mix management, focusing on the consumer, creating value on the long term; Developer DNA: 95% of the owned Gross Leasable Area (GLA) was developed by the Company; Mixed-use: Development of other types of real estate projects attached to its shopping centers, creating sinergy to the whole complex; High productivity: Shopping center portfolio with the highest productivity by Structure for growth: We have people, capital, land and vision to keep growing. square meter of the sector 1 ; 1 Higher Rent and Net Operating Income (NOI) by owned square meter comparing to the other public companies in the sector, according to the most recent companies reports. Source: Multiplan 3

4 Location, Location, Location + Quality, Quality, Quality Multiplan vs Brazil average (2016) Multiplan s share in Brazil (2016) GDP per capita (Exposure to States) R$19,901 R$25, % Number of municipalities 5,561 cities Exposure to A/B classes 84% 3.2% Number of malls 64% 558 malls Average GLA by mall 27,306 sq.m. Total sales (R$/sq.m.) 10,366 R$/sq.m. 43,444 sq.m. 19,851 R$/sq.m. 5.1% 8.7% GLA (sq.m.) 15,237,000 sq.m. Shopping center sales (R$) R$157.9 billion Source: Multiplan, Abrasce and IBGE 4

5 Tenants Sales 10 Years Since the IPO: Value Creation November 2017 Pre-IPO 38% After IPO 62% R$3.1 B GLA growth since the IPO From Jun-07 to Jun-17 8 new shopping centers 17 mall expansions 2 office tower complexes 8 minority stake acquisitions = +418,400 sq.m. of owned GLA of value generated 1 by the ten properties added since the IPO = % owned GLA +4.9x 279.5k sq.m. of GLA was turned-over Since the IPO From Jun-07 to Jun-17 R$7.0 B invested in new projects and acquisitions since the IPO 103.4k sq.m. of international brands opened 24% of GLA for international brands in Jun-17 Shopping centers sales evolution (LTM) +261% (Jun-17) MULT3, Peers and IBOV evolution Peers MULT3 Peers IBOV Pe 337 CAPEX, cash generation, capital raised and dividends & IOC INVESTMENTS: R$7.0 B +172% (Dec-16) CASH GENERATED 3 : R$4.1 B CAPITAL RAISED: R$2.8 B DIVIDENDS & IOC: R$1.3 B 2007 Jul-07 1 Measured by the Jun-17 fair value of properties delivered since Jul-07 minus its net CAPEX 2 Brazilian malls according to Brazilian Shopping Centers Association (ABRASCE) 3 Represented by the FFO Source: Multiplan Jul-17 5

6 10 Years Since the IPO: Mix Management Segments change in Multiplan s portfolio 39% +4.0% 36% 39% 33% +5.3% 21% 21% 18% 20% Dec-07 Jun % 10% 10% 8% 7% +7.5% 15% 8% 11% 8% +9.1% 30% 22% 23% 22% Vestuário Apparel Artigos Miscellaneous Diversos Home Lar & Office & Food Alimentação Court & Gourmet Escritório Area Serviços Services 39% 39% Gross Leasable 36% Area 36% (GLA) composition: Dec-17 Dec-07 Same Store Sales five-year average growth: % Jun-17 Jun-17 21% 21% 18% 18% 10% 10% 8% 8% 8% 8% 15% 15% 22% 22% 23% 23% 6

7 We Operate the Best Portfolio of Retail Assets in the Country Tenants sales: Multiplan & USA malls Tenants sales USD/sq.f. ³ (satellite stores only) USA malls¹ Multiplan's malls Tenants sales: Multiplan & Brazilian malls Tenants sales USD/sq.f.³ (anchor + satellite stores) Location, location, location: we are well positioned inside the largest cities; 2. Consumer experience: Food + Service segments represented 38.8% of Multiplan s GLA 4, more than Apparel; 3. Mixed-use: integrate other types of real estate with malls, generating synergies; 4. Organic growth: 46 mall expansions delivered in 43 years; 5. Innovation: constant mix change antecipating consumers need and trendspotting; 6. Efficiency: High productivity, low tenant concentration. 295 Brazilian malls² Multiplan's malls 1 Source: ICSC International Council of Shopping Centers 2 Source: Abrasce Associação Brasileira de Shopping Centers. 3 Source: Bloomberg final Exchange rate of R$ / US$. 7

8 Our Shopping Centers Sales Keep Growing November 2017 Sales grew every year Evolution of tenants sales (R$) 9M17...while malls keep constantly changing... CAGR: +6.9% +7.6% 10.1 B 7.7 B 8.7 B 9.1 B 9.4 B Turnover of 31,449 sq.m. in GLA in 9M17 (4.0% of total GLA) Equivalent to 218 stores 9M13 9M14 9M15 9M16 9M17 benefiting from mix improvement Same Area and Same Store Sales growth (%) 9M17 and creating strong results 5.0% 2.5% 5.0% 2.5% 0.0% 0.0% -2.5% 2.7% 0.6% 3.9% 4.2% 4.1% 2.1% 1.6% 2.3% 5.5% 6.8% 3.2% 2.8% 2.7% 0.6% 3.9% 2.1% 4.2% 1.6% 4.1% 2.3% 3.2% 2.8% Mix 3Q15 4Q15 1Q16 2Q16 Improvement 3Q16 Same Store Sales 9M17 x 9M16 Anchor Satellite Total Food Court & Gourmet Area % +4.8% Apparel +5.1% +3.0% +3.2% Home & Office +15.0% +22.1% +19.8% Miscellaneous +0.8% +1.1% +0.6% Services +3.9% +16.4% +13.8% Total +5.3% +5.9% +5.5% Same Area Sales Same Store Sales Source: Multiplan 8

9 98.6% 98.5% 98.4% 99.0% 98.6% 98.4% 98.0% 97.9% 97.6% 97.3% 97.4% 97.7% November 2017 Sustainable Operating Data Occupancy cost stable while delinquency rate is low 13.0% 13.1% 13.0% 13.5% 13.2% 13.2% 5.6% 5.6% 5.3% 5.7% 5.5% 5.5% 12.7% 13.1% 13.1% 13.0% 13.1% 13.0% 3.1% 2.4% 3.0% 3.0% 2.8% 5.4% 5.3% 5.4% 5.6% 5.6% 5.3% 7.4% 7.5% 7.7% 7.9% 7.7% 7.6% 7.3% 7.8% 7.6% 7.4% 7.5% 7.7% 3Q13 3Q14 3Q15 3Q16 3Q17 Five 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 quarters average Rent as % of Sales Other as % of Sales Other as sales % Occupancy cost 2.7% 2.2% 1.1% 0.9% 1.3% 3Q16 4Q16 1Q17 2Q17 3Q17 Gross Delinquency Rate Net Delinquency Rate keeping occupancy rate at high levels 98.1% 98.8% 98.1% 97.4% 97.5% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Source: Multiplan 9

10 % of Rental Revenues November 2017 Diversified Long-term Contract Base Gross revenue breakdown in 9M17 Key Money 0.6% Others 1 3.2% Services 7.9% Base rent 90.0% 1,571 brands, 5,400 stores Parking 14.4% Rent 74.0% Merchandising 6.9% Overage 3.1% Strong base rent 5-year contracts Pulverized tenant base: Top retail chains in 9M17 25% 23% 21% 19% 17% 15% 13% 11% 9% 7% 5% 3% 1% Top 10: 13.1% Top 25: 23.0% 1 Others includes real estate for sale, straight-line effect and other revenues. Source: Multiplan Number of Retail Chains 10

11 Rental revenue growth Rental Revenue Growth Drivers +11.0% +5.9% +12.2% What drives our growth? M M +1.2 M +5.3 M M Inflation protection Satellization process +10.9% Contractual step-ups Expansions Mix improvements results Acquisitions Rental revenue 9M16 Base rent Overage Merchand. Rental revenue 9M17 Same Store Rent growth (YoY) Real SSR Growth 1 : 4.0% 2.5% 3.0% 2.4% -2.2% -1.0% 0.5% 1.3% Returning to real growth 10.4% 9.6% 8.8% 6.4% 7.1% 5.8% 7.4% 5.0% 9.5% 7.1% 9.8% 8.7% 8.6% 8.1% 6.7% 5.3% Average Real SSR 5 years: 1.2% Since IPO: 2.5% Q17 2Q17 3Q17 1 Real SSR considering the IGP-DI adjustment effect in each period. Source: Multiplan Same Store Rent (SSR) growth (y/y) x% IGP-DI inflation effect on contracts (y/y) x% SSR IGP-DI Adjustment Effect SSR real growth/decline (y/y) 11

12 The Long-term Challenge: To Deliver Sustainable Growth Rental revenue breakdown (R$), occupancy rate (%) and rent loss (%) 97.4% 96.6% 96.9% 98.6% 98.2% 97.9% 98.1% 98.7% 98.3% 97.5% 97.5% M 97.6% 98.2% 98.7% 97.8% 98.1% 97.8% 97.6% 98.4% 98.4% 97.6% M 97.7% M M M M M M M M M M M M 88.7% 88.9% 89.7% 89.7% M M M M 88.6% 94.3 M 84.2% 83.2% 85.8% 84.7% 86.2% 87.3% 81.5 M 88.7% 68.8 M 87.3% 87.9% 89.4% 54.4 M 88.0% 83.1% 79.3% 85.8% 83.5% 86.3% 85.7% 0.7% 0.9% 0.9% 0.9% 1.3% 0.4% 0.7% 0.8% 0.7% 1.3% 1.4% 0.5% 1.7% 0.4% 0.8% 1.0% 1.7% 0.2% 0.6% 0.3% 1.1% 0.8% Sep-17 (LTM) 2Q07 2Q08 2Q09 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 2Q17 érie4 Overage Merchandising Base rent (and as % of total) Average occupancy rate (%) Rent loss (%) Source: Multiplan 12

13 Delivering Double-digit Net Operating Income (NOI) Growth Evolution of Net Operating Income (NOI) (R$) and margin (%) CAGR: +12.7% +10.6% M 88.9% M M 87.2% M 89.1% M 86.5% M 88.0% Rental revenue 9M16 vs 9M17 Properties expenses 85.3% 9M12 9M13 9M14 9M15 9M16 9M17 NOI Margem NOI Evolution of properties expenses (R$) and as % of properties revenues¹ -3.1% M M M 9M16 vs 9M M 87.0 M 81.4 M M 80.0 M Owned GLA Delinquency 14.7% 12.8% 10.9% 13.5% 12.0% 60.0 M 40.0 M 20.0 M Vacancy Parking expenses ¹ Considers properties rental and parking revenues. Source: Multiplan 9M13 9M14 9M15 9M16 9M M 13

14 260. 0M M M 20. 0M M M M M 10. 0M M M M 20. 0M M M M M 10. 0M M M M 20. 0M M M M M 10. 0M November 2017 Financial Results Evolution of G&A Expenses (R$) and as % of Net Revenue EBITDA (R$) 0.9% 33.0 M -2.7% M 98.9 M M +6.2% M 11.3% 12.4% 11.6% M +0.4% M % M M 67.2% 204, M 3Q17 9M16 9M17 1Q16 9M16 1Q17 9M17 Adjusted EBITDA ¹ Consolidated EBITDA Net Income (R$) Consolidated EBITDA margin FFO (R$) +17.4% M +15.7% M M M M +3.3% M 71.3% 26.1 M M % M 204, M 1Q16 1Q17 9M16 9M M +6.6% M % M M M 67.2% 204, M 1Q16 1Q17 9M16 9M17 Adjusted Net Income ¹ Consolidated EBITDA ¹ When share-based compensations account Consolidated is not considered. EBITDA margin Source: Multiplan Adjusted FFO ¹ Consolidated EBITDA Consolidated EBITDA margin 14

15 Capital Management: Sucessfully Navigating on Interest Rates Changes November 2017 Cash generation and debt position (R$) as of September 30, 2017 Debt indexes on September 30, 2017 Debt indexes evolution 1,081.4 M 3,005.3 M 1,923.9 M M M Financial Position Analysis ¹ Sep. 30, 2017 Net Debt/EBITDA 2.35x Gross Debt/EBITDA 3.66x EBITDA/ Net Financial Expenses 3.62x Net Debt/Fair Value 11.3% Total Debt/Shareholders Equity 0.59x Net Debt/Market Cap 13.1% Weighted Average Maturity (Months) 50 Others 14.2% TR 42.1% CDI 43.7% Others 2.9% TR 33.6% CDI 63.5% Cash Gross Debt Net Debt EBITDA (LTM) FFO (LTM) Sep-14 Sep-17 Weighted average cost of funding vs. Selic rate (% p.a.) 13.75% 14.25% 12,75% 13,75% 14,25% 14,25% 14,25% 14,25% 14,25% 13,75% 14.25% 14.25% 14.25% 14.25% 13.75% 11.75% 12.75% 11,75% 10,75% 12.25% 11,00% 11,00% 13,09% 13,22% 11.00% 12.29% 12.81% 12,81% 13,23% 13,50% 13.09% 13.22% 13.23% 13.50% 13,18% 13.18% 0,00% 10.61% 10.54% 10.96% 11.53% 12.18% 9.18% 9,87% 10,41% 10,50% 10,54% 10,96% 11,53% 12,29% 10.25% 8.25% dez/13 mar/14 jun/14 set/14 dez/14 mar/15 Jun-15 set/15 dez/15 mar/16 jun/16 set/16 dez/16 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Multiplan Multiplan cost of Cost funding of Funding (gross (gross debt) debt) Selic Selic Rate rate ¹ EBITDA and Net Financial Expenses are the sum of the last 12 months. Source: Multiplan and BCB (Banco Central do Brasil) 15

16 Capital Structure Ready for Growth Evolution of Net Debt/EBITDA 1 Financial Covenants 4.00x 3.00x 2.00x 2.43x 2.40x 3.04x 2.39x 2.40x 2.35x Lowest covenant (4.00x) Covenant ¹ Limit Sep-17 Debt Volume Status Net Debt/EBITDA <= 4.00x 2.40x 1,250.2 M Comply EBITDA/Net Financial Expenses >= 2.00x 3.55x M Comply Total Debt/Total Asset <= 0.50x 0.35x 49.0 M Comply EBITDA Margin >=20.0% 74.9% 49.0 M Comply 1.00x Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Total Debt/Shareholders Equity <= 1.00x 0.58x 31.3 M Comply Total debt w ith financial covenants 1,299.2 M Debt per type (%) Debt amortization schedule (R$) Property Acquisition 3% Cash (Sep-17) FFO (LTM) 507 M 1,081 M 4Q M Bank Financing 36% Capital Market 34% M 404 M 508 M Bank Loans 27% M 409 M 413 M 1 EBITDA and Net Financial Expenses are the sum of the last 12 months. Source: Multiplan M 16

17 Close to 1.3 Million sq.m. of In-house Growth Potential Through New Developments ,000 sq.m. in Greenfields 150,000 sq.m. in Expansions + 35% of Current Total GLA Growth 977,250 sq.m. in Mixed-Use Projects 17

18 7% of Total GLA Growth in ,600 sq.m. of GLA are being delivered in 2017 (+7% of total GLA) RibeirãoShopping Medical Center Patio Savassi Expansion ParkShoppingCanoas VillageMall Expansion + 6,200 sq.m. + 2,300 sq.m. + 48,000 sq.m. + 1,100 sq.m.¹ ¹ The area refers to the 1 st phase of the expansion. 18

19 Greenfield Under Construction 48,000 sq.m. of GLA Multiplan s Stake: 80% Opening: Nov 23, 2017 Leased GLA: 93.1% (1) Considering Multiplan s interest in the CAPEX of 94.7% (2) Considering Multiplan s interest of 80.0% Source: Multiplan 19

20 NOI and Stock Price Evolution LTM NOI (1) and stock price evolution since IPO Oct 17, 2012 (2) LTM NOI (3) of R$570 mn R$63.18/share NOI: +82% MULT3: +16% Sep 29, 2017 LTM NOI (4) of R$1,037 mn R$73.33/share 507 NOI (LTM) Share price Share Price NOI LTM Jul-07 May-08 Feb-09 Nov-09 Sep-10 Jun-11 Mar-12 Jan-13 Oct-13 Aug-14 May-15 Feb-16 Dec-16 Sep-17 Source: Multiplan and Bloomberg as of June 30 th, Note: Multiplan s IPO was on July (1) Considers the 90 days moving average of LTM NOI. (2) The October 17 th, 2012 closing price was the highest until December 31 th, (3) NOI from Oct-11 to Sep-12. (4) NOI from Oct-16 to Sep

21 MULT3 Performance Evolution of average daily traded volume Examples of indexes that MULT3 integrates ADTV of R$52.8 million in 9M17 Multiplan was listed on 84 indexes in September 30, , , , , , M 31.7 M 38.6 M 39.5 M 51.5 M Emerging Markets All-Word ex North America Index USD Emerging BMI Index Dec-14 Jun-15 Dec-15 Jun-16 Dec M Dec-14 Jul-15 Feb-16 Aug-16 Mar-17 Sep-17 ¹ Base Date: December 31, Base Date: April 30, 2015 Source: Bloomberg M17 Multiplan IBOV Average daily traded volume (R$) Average daily traded of shares Evolution of MULT3 since inception in Bovespa Index 1 Evolution of MULT3 since inception in IBrX 50 Index % +48.6% Traded Volume (15 day average) MULT3 / IBOV: +601 b.p. Multiplan R$ R$ MULT3 / IBrX50: 80.0 M 180 Multiplan +38.4% +837 b.p M 70.0 M 60.0 M 50.0 M 40.0 M 30.0 M IBrX % Traded Volume (15 day average) Multiplan 70.0 M 60.0 M 50.0 M 40.0 M 30.0 M M Apr-15 Oct-15 Apr-16 Oct-16 Mar-17 Sep-17 21

22 Shopping Center Market Penetration Share of malls in retail sales % 53% 54% 62% 69% 10% 11% 13% 14% 16% 17% 18% 18% 18% 19% 21% 23% 25% 28% F A M E AS C 2011 Mall penetration in the world (m² of GLA per 1,000 inhabitants ratio, 2011) 1 2 2,200 Shopping center owned GLA breakdown in Brazil 1 4 (Jun-17) Shopping centers in Brazil (Jun-17) 1 3 Municipalities with a shopping center 202 1,350 Public companies 21% Others 79% Municipalities without a shopping center 5,359 Total GLA: 15,341,000 sq.m Malls: Source: Abrasce Associação Brasileira de Shopping Centers 2 Source: ICSC International Council of Shopping Centers (ICSC) 3 Source: IBGE Brazilian Statistics Bureau 4 Source: Multiplan, Abrasce and reports from the following public companies: Aliansce, Brmalls, CCP, General Shopping, Iguatemi, JHSF and Sonae Sierra. Total municipalities: 5,561 22

23 IR Contact Armando d Almeida Neto CFO and IRO Hans Melchers Investor Relations and Planning Director Franco Carrion Investor Relations Manager Leandro Vignero Investor Relations Analyst Tel.: +55 (21) Fax: +55 (21) ri@multiplan.com.br ir.multiplan.com.br