Discussion Material November Q16

Transcription

1 Discussion Material November 2016

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 Market Penetration Share of malls in retail sales % 53% 54% 62% 69% 52% 53% 54 10% 11% 13% 14% 16% 17% 18% 18% 18% 19% 21% 23% 25% 28% 28% 10% 11% 13% 14% 16% 17% 18% 18% 18% 19% 21% 23% FR AU MX US AS CD FR AU MX U Mall penetration in the world (m² of GLA per 1,000 inhabitants ratio, 2011) 1 2 Shopping centers in Brazil (Out-16) 1 Number of municipalities: 5, ,200 Municipalities with a shopping center 203 1, Municipalities without a shopping center 5,358 1 Source: Abrasce Associação Brasileira de Shopping Centers 2 Source: ICSC International Council of Shopping Centers (ICSC) 3 Source: IBGE Brazilian Statistics Bureau 3

4 Multiplan at a Glance High Productivity Portfolio Recognized developer of top-of-mind shopping centers in regions with the largest GDP in Brazil; Full service Company that plans, develops, owns and manages one of the most efficient shopping center portfolios in the country; Long-term planning including expansions and mixed-use projects; Top line growth and efficiency gains leading to a strong 5-year CAGR 1 of 15.0% in NOI and 6.2% in FFO. A Seasoned 42-year Company Proven track record in the real estate industry; Management and control of its shopping centers, allowing great flexibility to implement improvements; 18 shopping centers with an average interest of 73.8% and 775,561 sq.m. of total GLA 2, besides 2 office towers for lease. Historical growth strategy breakdown (% of total GLA 2 ) Acquisitions 5% Offices for lease 10% Greenfields 65% Expansions 20% Interest, management and control in properties Value Creation 19/20 19/20 Market capitalization of R$12.0 billion 3, the largest among publicy traded real estate companies in Brazil; 98% of occupancy rate (9M16); 5-year contracts, adjusted by inflation; Development DNA: developed 95% of total GLA; Potential mall expansion pipeline of over 150,000 sq.m. of GLA; Landbank of 820,519 sq.m. to develop mixed-use projects. 1 CAGR: Compound Annual Growth Rate. 3 GLA: Gross Leasable Area. 2 Share price of R$63.20 on September 30 th, 2016 (Bloomberg). 4 Over Company s properties (18 shopping centers and 2 office towers). 5 % of Gross Leasable Area of shopping centers and office towers. Managed properties 4 Properties with interest of 50% 4 or more 75.7% Portfolio ownership 5 4

5 Properties Portfolio Shopping center in operation Tow er for lease in operation Shopping center under development AL Maceió, Alagoas State Parque Shopping Maceió Brasília - DF ParkShopping ParkShopping Corporate DF MG Belo Horizonte, Minas Gerais State Pátio Savassi DiamondMall BH Shopping Curitiba, Paraná State ParkShoppingBarigüi Porto Alegre Rio Grande do Sul State BarraShoppingSul Canoas, Rio Grande do Sul State ParkShoppingCanoas SP PR RS RJ São Paulo, São Paulo State ShoppingAnáliaFranco MorumbiShopping ShoppingVilaOlímpia Morumbi Corporate Jundiaí, São Paulo State Rio de Janeiro, Rio de Janeiro State BarraShopping New York City Center VillageMall ParkShoppingCampoGrande JundiaíShopping Ribeirão Preto, São Paulo State Shopping Santa Úrsula RibeirãoShopping São Caetano, São Paulo State ParkShoppingSãoCaetano 5

6 Control Position Ownership structure on September 30 th, 2016 Mgmt. + Treasury 0.7% Free Float 41.9% MTP+Peres 28.6% 2 1 OTPP 28.8% Common Stocks 22.6% Preferred Stocks 6.2% 1 OTPP: Ontario Teachers Pension Plan. 2 MTP + Peres: shares owned directly or indirectly by Mr. And Mrs. Peres. 6

7 Sep-16 A Seasoned Company with a Proven Track Record Evolution of GLA and occupancy rate at shopping centers portfolio Number of Shopping Centers: 94.5% 99.1% 90.7% 97.4% 97.6% IPO Sep-16 shopping center average occupancy rate 1979 Sep-16 total GLA ( 000 m 2 ) 7

8 Diversified Revenues Others 0.6% Real Estate for Sale 0.6% Gross revenue breakdown in 9M16 Parking 15.0% Base rent 89.9% Key Money 1.1% Rental Revenue 69.3% Services 10.5% Straight Line Effect 2.9% Merchandising 6.9% Overage 3.2% Rental revenue breakdown (R$) 1,100.0 M M M M M M (100.0 M) 97.4% 96.6% 96.9% 98.6% 98.2% 97.9% 98.1% 98.7% 98.3% 97.7% M M M M M M M M 88.7% 88.9% 89.4% M M 88.6% 87.3% 86.2% 85.8% 84.7% 84.2% 83.2% Sep % 95.0% 90.0% 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% Base Rent Merchandising Overage Average Occupancy Rate (%) 8

9 % of Rental Revenues Diversified Revenues Rental Revenue Diversification: Top Retail Chains Sep-16 26% 24% 22% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% - Top 10: 12.0% Top 25: 21.6% Number of Retail Chains Tenants with more than one store in Multiplan s portfolio (% of GLA) Evolution of delinquency rate Tenants with more than one store + Internat. 81% Tenants with one store 19% 4.5% 4.0% 3.1% 2.4% 1.9% 3.6% 2.4% 1.1% 3Q15 4Q15 1Q16 2Q16 Gross Delinquency Rate Net Delinquency Rate 9

10 1 Diversified Revenues Operational efficiency sales (US$/sq.f) Sep-16 Operational efficiency rent (US$/sq.f) Sep % 41 USA Shopping Centers Brazilian shopping centers - Sep- Multiplan (Anchor + Satellite) - Multiplan (Satellite) - Sep Sep Brazilian shopping centers 2 Multiplan's shopping centers Food Court, Gourmet Area and Minimarkets 14% Miscellaneous 18% Multiplan Home & Office 8% Services 1 23% Source: ICSC International Council of Shopping Centers 2 Source: Abrasce Associação Brasileira de Shopping Centers. 3 Sep-16 final Exchange rate of R$ / US$ (Bloomberg). 4 Source: ICSC International Council of Shopping Centers and JLL Jones Lang LaSalle. Store Segment GLA Distribution Sep-16 Apparel 36% Food Court, Gourmet Area and Minimarkets 21% Miscellaneous 11% Home & Office 7% Services 11% USA 4 Apparel 50% 10

11 Tenant Mix Management Turnover in GLA and as % of total GLA (%) SAS and SSS spread (%) 5.2% 5.2% 5.1% 5.1% 4.8% 4.8% 4.3% 4.3% 35, % 35,438 34, % 31,003 34,001 31,003 30,727 30,727 27, % 1.9% 27, % 1.9% 1.7% 1.3% 1.7% 1.3% 2.4% 2.4% M M16 6.0% 6.0% 5.0% 5.0% 4.0% 4.0% 3.0% 3.0% 2.0% 2.0% 1.0% 1.0% 1.5% 1.1% 1.4% 0.5% 0.1% M16 Turnover GLA (m²) Turnover (%) Vacancy (%) Turnover GLA (m²) Turnover (%) Vacancy (%) SAS and SSS Spread (%) Breakdown of the mall GLA turnover by retail segment 9M16 38,8% 37,1% ,8% 37,1% 38,8% 37,1% 51.7% 22,4% 22,6% 30.4% Out 38,8% 22,4% 22,6% 37,1% 20,9% 21,1% 20,9% 21,1% 22,4% 22,6% 20,9% 21,1% 10,7% 10,7% 10,0% 22,4% 8,0% 22,6% 8,0% 26.2% 8,6% 10,7% 20,9% 21,1% 10,0% 8,0% 8,6% 21.3% 10,7% 17.2% 15.2% Home & Office 14.5% Home & Office 8,0% 13.3% Apparel Services Apparel Miscellaneous Services Food Court Miscellaneous & Food Court & Apparel Services Gourmet Area Miscellaneous Gourmet Area Food Court & Gourmet Area In ,0% 8,6% Home & Office Apparel Services Miscellaneous Food Court & Gourmet Area 10,0% 8,6% 38,8% 5.3% 37,1% Home & Office 4.9% Apparel Food Court & Gourmet Area Miscellaneous Services Home & Office 22,4% 22,6% 20,9% 21,1% 11

12 Operational Performance Same Store and Same Area Sales growth (YoY) 15.8% 14.6% 11.1% 9.3% 8.9% 8.9% 15.9% 9.0% 7.5% 3.3% 3.6% 10.3% 12.4% 7.2% 7.6% 8.4% 7.4% 7.9% 1.8% 2.2% M16 Same Area Sales Same Store Sales 12.0% 10.3% 10.0% 9.7% 9.5% 9.4% 7.0% 7.7% 7.4% 8.8% 7.7% 8.0% 9.3% 8.8% Same Store Rent 5.7% growth (YoY) 6.7% 5.7% 2.8% 2.7% 6.6% 9.4% 7.5% 8.3% 8.2% 8.1% 8.5% 6.8% 8.1% 8.4% 7.6% 8.3% 9.4% 5.8% 6.1% 7.9% 14.1% 4.3% 1.2% 0.6% 9.6% 1Q % 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q % 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 9.4% 9.6% 8.8% 6.9% 7.4% 6.7% M16 Real SSR growth 1 Average Real SSR 5 years: 3.2% Since IPO: 3.5% 5.7% 2.5% 1.5% 5.7% 5.0% 4.0% 2.5% 3.0% 2.4% (2,6%) 1 Real SSR considering the IGP-DI adjustment effect in each period. 12

13 Financial Highlights Rental Revenue Evolution (R$) CAGR: +12.6% Net Operating Income (NOI) (R$) and margin (%) evolution CAGR: +6.2% M M M M +6.2% M M 84.7% M M 87.4% 89.3% +3.3% M M 89.1% 86.5% M15 9M M15 9M16 Consolidated EBITDA (R$) and margin (%) evolution CAGR: +13.7% CAGR: +12.8% Net Income (R$) and margin (%) evolution M M M +3.0% M M M M M +1.0% M M 62.4% 70.2% 72.7% 71.5% 70.7% 29.1% 32.6% 33.4% 28.6% 27.7% M15 9M M15 9M16 13

14 Evolution of Margins Since the IPO 100.0% 80.0% 60.0% 40.0% 20.0% 78.1% 57.6% 48.9% 88.7% 87.4% 70.9% 72.1% 46.8% 47.1% 31.5% 32.6% 0.0% 1.1% Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 NOI Margin EBITDA Margin FFO Margin Net Income Margin Sep-16 14

15 Historical Performance of Multiplan s Results (R$ million) 1,245 1,227 1,185 1, Gross Revenue Net Operating Income EBITDA FFO Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 R$ million Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Chg. % (Sep-16 /Sep-07) CAGR % (Sep-16 / Sep-07) Gross Revenue ,046 1,185 1,227 1, % +15.3% Net Operating Income % +18.7% EBITDA % +17.3% FFO % +12.8% Net Income ,243.5% +67.4% 15

16 Debt and Cash Cash generation and debt position (R$) as of September 30, M 2,612.5M 1,932.7M Net Debt EBITDA = 2.40x 805.8M 526.2M Multiplan debt indices on September 30, 2016 Financial Position Analysis ¹ Sep. 30, 2016 Net Debt/EBITDA 2.40x Gross Debt/EBITDA 3.24x EBITDA/ Net Financial Expenses 4.09x Net Debt/Fair Value 12.5% Total Debt/Shareholders Equity 0.60x Net Debt/Market Cap 16.1% Weighted Average Maturity (Months) 49 Debt breakdown on September 30, 2016 TJLP 3.0% CDI 57.6% IGP-M Others 0.3% 2.2% TR 36.9% Cash Gross Debt Net Debt EBITDA FFO All of Multiplan s debt is in local currency Brazilian Reais Weighted average cost of funding vs. Selic rate (% p.a.) 9.34% 9.00% 11.75% 10.00% 10.75% 11.00% 11.00% 9.87% 10.41% 10.50% 10.54% 10.96% 12.75% 11.53% 13.75% 14.25% 14.25% 14.25% 14.25% 14.25% 12.29% 12.81% 13.09% 13.22% 13.23% 13.50% Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Multiplan Cost of Funding (gross debt) Selic Rate ¹ EBITDA and Net Financial Expenses are the sum of the last 12 months and BCB (Banco Central do Brasil) 16

17 - 10 M 20 M 30 M 40 M 50 M 60 M 70 M 80 M Debt Amortization Schedule and Covenants Evolution of Net Debt/EBITDA and its lowest covenant Covenants 3.25x 3.25x 2.44x 3.03x 3.50x 4.00x 4.00x 2.36x 2.44x 2.40x Covenant ¹ Limit Sep-16 Debt Volume Status Net Debt/EBITDA <= 4.00x 2.40x 1,519.7 M Comply EBITDA/Net Financial Expenses >= 2.00x 4.09x 1,084.1 M Comply Total Debt/Total Asset <= 0.50x 0.35x 95.7 M Comply EBITDA Margin >=20.0% 70.5% 95.7 M Comply Total Debt/Shareholders Equity <= 1.00x 0.60x 44.6 M Comply Total debt with financial covenants 1,615.4 M Sep-16 Lowest Covenant 4Q16 3.9% Net Debt / EBITDA Debt amortization schedule (%) 4Q16 11 M 27 M 65 M 103 M Debt amortization schedule (R$) > % % % M 347 M 196 M 27 M 291 M 12 M 359 M 594 M 199 M 395 M 199 M 793 M % % M 105 M 105 M 105 M 105 M 95 M 95 M 228 M Loans and financing (banks) Obligations from acquisition of goods (land and minority interest) Debentures ¹ EBITDA and Net Financial Expenses are the sum of the last 12 months M 139 M 17

18 Fair Value and Debt Analysis as of September 2016 Fair Value of Investm ent properties and indebtedness Septem ber (R$ million) 2016 Shopping Centers and office towers in operation Future Projects (announced) Future Projects (not announced) Total Fair Value Gross Debt Cash and Equivalents Net Debt 14,888 M 240 M 358 M 15,485 M 2,613 M 680 M 1,933 M Gross Debt / Fair Value 16.9% Net Debt / Fair Value 12.5% Funding Breakdown (R$) To be drawn 123 M Unencumbered Total GLA Encumbered GLA 19% Unencumbered GLA 81% Unsecured debt Receivables only 4% Unencumbered properties 5 Encumbered properties 25% 15 Unencumbered properties 75% Drawn 2,612 M Unsecured Debt 63% Properties / receivables 33% 18

19 Value Reserve Fair Value 17.5 B 15.0 B 12.5 B 10.0 B 7.5 B 5.0 B 2.5 B Evolution of Fair Value¹ (R$) Future projects (not disclosed) Properties under development (disclosed) Properties in operation 0.0 B Sep-16 Growth of Fair Value¹, NOI and owned GLA (Base 100: 2010) Fair Value - properties in operation NOI - properties in operation Owned GLA - properties in operation B Landbank Potential Projects Shopping Center % Multiplan Land Area Potential Area for Sale 2 BarraShoppingSul 100% 159,587 m² 304,515 m² Hot JundiaíShopping 100% 4,500 m² 11,616 m² Off ParkShoppingBarigüi 94% 28,214 m² 43,376 m² Apa ParkShoppingCampoGrande 90% 317,755 m² 92,774 m² Off ParkShoppingCanoas n.a. 18,721 m² 22,457 m² Hot ParkShoppingSãoCaetano 100% 36,948 m² 138,000 m² Off Parque Shopping Maceió 50% 86,699 m² 182,665 m² Off RibeirãoShopping 100% 102,295 m² 138,749 m² Hot ShoppingAnáliaFranco 36% 29,800 m² 89,600 m² Res VillageMall 100% 36,000 m² 34,038 m² Off Total 83% 820,519 m² 1,057,790 m² Pro ¹ Calculated according to CPC 28. Details are available in the September 30, 2016 Financial Statements and Earnings Report. ² This information is merely informative for the better understanding of the Company s growth potential and should not be considered as a commitment to develop the aforementioned projects, which may be changed or cancelled without prior notice Sep-16 19

20 Properties Portfolio 1 Multiplan s ownership does not consider in this presentation the recent acquisitions in BarraShopping and MorumbiShopping announced in September and November Sales per m²: Sales/m² calculation considers only the GLA from stores that report sales, and excludes sales from kiosks, since they are not counted in the total GLA. 3 Rent per m²: Sum of base and overage rents charged from tenants divided by its occupied GLA. It is worth noting that this GLA includes stores that are already leased but are not yet operating (i.e., stores that are being readied for opening). Portfolio Opening State Multiplan Avg. Total GLA % 1 () Operating shopping centers BH Shopping 1979 MG 80.0% 47,154 m² 24,545 R$/m² 2,134 R$/m² 97.9% RibeirãoShopping 1981 SP 80.0% 68,658 m² 12,599 R$/m² 915 R$/m² 96.5% BarraShopping 1981 RJ 51.1% 78,213 m² 28,781 R$/m² 2,576 R$/m² 99.3% MorumbiShopping 1982 SP 65.8% 56,102 m² 31,614 R$/m² 2,758 R$/m² 99.8% ParkShopping 1983 DF 61.7% 53,524 m² 21,977 R$/m² 1,692 R$/m² 97.4% DiamondMall 1996 MG 90.0% 21,386 m² 28,642 R$/m² 2,245 R$/m² 99.8% New York City Center 1999 RJ 50.0% 22,257 m² 9,950 R$/m² 681 R$/m² 100.0% ShoppingAnáliaFranco 1999 SP 30.0% 51,719 m² 21,541 R$/m² 1,696 R$/m² 98.0% ParkShoppingBarigüi 2003 PR 84.0% 52,243 m² 19,231 R$/m² 1,189 R$/m² 97.8% Pátio Savassi 2004 MG 96.5% 19,255 m² 21,920 R$/m² 1,610 R$/m² 99.4% ShoppingSantaÚrsula 1999 SP 62.5% 23,057 m² 7,802 R$/m² 331 R$/m² 90.6% BarraShoppingSul 2008 RS 100.0% 73,001 m² 15,338 R$/m² 771 R$/m² 99.1% ShoppingVilaOlímpia 2009 SP 60.0% 28,370 m² 16,318 R$/m² 1,123 R$/m² 93.2% ParkShoppingSãoCaetano 2011 SP 100.0% 39,253 m² 15,225 R$/m² 1,078 R$/m² 99.0% JundiaíShopping 2012 SP 100.0% 34,407 m² 13,556 R$/m² 832 R$/m² 95.6% ParkShoppingCampoGrande 2012 RJ 90.0% 43,486 m² 11,642 R$/m² 862 R$/m² 95.1% VillageMall 2012 RJ 100.0% 25,704 m² 22,551 R$/m² 1,209 R$/m² 96.4% Parque Shopping Maceió 2013 AL 50.0% 37,498 m² 10,325 R$/m² 725 R$/m² 92.9% Subtotal operating Shopping Centers 73.8% 775,286 m² 19,136 R$/m² 1,433 R$/m² 97.4% Operating office tower ParkShopping Corporate 2012 DF 50.0% 13,360 m² 20.8% Morumbi Corporate 2013 SP 100.0% 74,198 m² 92.1% Subtotal operating office towers 92.4% 87,558 m² Total properties for lease 75.7% 862,844 m² Shopping center under development ParkShoppingCanoas 2017 RS 80.0% 48,000 m² 73.3% Subtotal shopping center under development 80.0% 48,000 m² Expansions under development RibeirãoShopping Medical Center Exp SP TBD 4,181 m² 89.0% Pátio Savassi - Exp. II - Phase MG 96.5% 2,300 m² 100.0% Subtotal expansions under development TBD 6,481 m² Total portfolio TBD 917,325 m² Sales 2 Rent 3 Avg. Occupancy Rate () 20

21 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 Daniela Mostaert Investor Relations Analyst Tel.: +55 (21) Fax: +55 (21) ri@multiplan.com.br ir.multiplan.com.br 21