RECENTLY DELIVERED PROJECTS

Transcription

1 NOVEMBER 2017

2 RECENTLY DELIVERED PROJECTS Residência Cidade Jardim Hotel Fasano Las Piedras Fazenda Boa Vista Horto Bela Vista Vitra Mena Barreto Parque Cidade Jardim

3 COMPANY HISTORY Opening of Fasano Rio de Janeiro Sale of Shopping Metrô Santa Cruz Constitution of JHS Opening of Shopping Metrô Santa Cruz Acquisition of a majority interest in Fasano Hotel Opening of Shopping Cidade Jardim Opening of Fasano Boa Vista Hotel Opening of Shopping Metrô Tucuruvi Sale of Shopping Metrô Tucuruvi Beginning of Real Estate Development IPO Opening of Fasano Las Piedras Hotel Opening of Shopping Bela Vista Opening of Catarina Fashion Outlet Creation of Shopping mall division Opening of Shopping Ponta Negra Sale of 33% of Shopping Cidade Jardim

4 ACTUAL GOVERNANCE Fiscal Council Board of Directors Statutory Audit Committee Board of Executive Officers Operations Recurring Income Real Estate Development Hotels & Restaurants Airport Financing Model Fixed capital Working capital Asset light Fixed capital Stable cash flow Volatile cash flow Fix costs diluting Stable cash flow Monetization Land bank Management agreements Monetization 4

5 STRATEGY & CURRENT PRIOTIES JHSF is turning into a recurring real estate income company, increasing the independence of its business units. Priorities Deleverage Headcount reduction Cost reduction Increase asset turnover, ROE and ROIC Strategy Create value through real estate projects to serve high-end clients in Brazil; Focused on Recurring Income business model with portfolio flexibility; Revenue growth based on existing land bank and synergic to existing successful projects. 5

6 ALREADY DELIVERING ITS STRATEGY WITH MORE TO COME INCREASING THE RECURRING INCOME BUSINESS 93% 77% 59% 40% 28% 9% 91% 7% 23% 41% Recurring Income RE Development 60% 72% DELEVERAGE 2,660 HEADCOUNT REDUCTION 1,265* 1,671 1, Sep-15 Sep-16 Sep *Includes construction employees

7 RECURRING INCOME Executive Summary Niche Developer & Mall Operator since Growth based on (i) GLA occupance (no CAPEX), (ii) GLA expansion on succesfull projects (land bank alrady invested with low execution risk, and (iii) new business model (small malls)

8 Centralized management fully controlling mall operations and tenant mix. RECURRING INCOME BUSINESS MODEL Management Condominium Mall Promotion Fund Parking lot Utilities 8

9 CONSOLIDATED MALL OPERATIONS INDICATORS

10 OUR FUTURE Additional GLA: 4, ,500 Existing land bank Contiguous to existing operation Additional GLA: 23,000 Existing land bank Across the street GLA: 3,500 Ongoing project EXPANSION BASED ON: Existing demand Positioning Market share consolidation WHY GREENFIELD? High-performing assets with additional landbank Commercial clustering Attractive IRR & ROIC 10

11 REAL ESTATE DEVELOPMENT Executive Summary Business focused on asset monetization through (i) inventory sale, and (ii) receivables collection. No further development projets in the pipeline. Future plans considers the development of existing land bank to generate Residential Rent for high income individuals (up to 1.1 million sq.ft).

12 REAL ESTATE DEVELOPMENT DELIVERED PROJECTS - AMOUNTS ARE NOT UPDATED C I D A D E J A R D I M C O R P O R A T E C E N T E R ( S ã o P a u l o S P ) % S o l d A l r e a d y d e l i v e r e d P S V : R $ m i l l i o n A p p r e c i a t i o n : 5 5 % P A R Q U E C I D A D E J A R D I M ( S ã o P a u l o S P ) % S o l d A l r e a d y d e l i v e r e d P S V : R $ m i l l i o n A p p r e c i a t i o n : 330% F A Z E N D A B O A V I S T A ( P o r t o F e l i z SP) P S V : R $ 2, m i l l i o n A p p r e c i a t i o n ( l a n d b a n k ) : 350% P R A Ç A V I L A N O V A ( S ã o P a u l o S P ) % S o l d A l r e a d y d e l i v e r e d P S V : R $ m i l l i o n A p p r e c i a t i o n : 140% B E N E D I T O L A P I N ( S ã o P a u l o SP) % S o l d A l r e a d y d e l i v e r e d P S V : R $ 8 0 m i l l i o n A p p r e c i a t i o n : 87% H O R T O B E L A V I S T A ( S a l v a d o r B A ) 9 9 % S o l d A l r e a d y d e l i v e r e d P S V : R $ 1, m i l l i o n A p p r e c i a t i o n : 80% V I T R A ( S ã o P a u l o S P ) % S o l d A l r e a d y d e l i v e r e d P S V : R $ m i l l i o n A p p r e c i a t i o n : 82% R E S I D Ê N C I A C I D A D E J A R D I M ( S ã o P a u l o S P ) % S o l d A l r e a d y d e l i v e r e d P S V : R $ m i l l i o n A p p r e c i a t i o n : 120% M E N A B A R R E T O ( S ã o P a u l o S P ) 7 2 % S o l d A l r e a d y d e l i v e r e d P S V : R $ 8 0 m i l l i o n A p p r e c i a t i o n : 5% C I D A D E J A R D I M T O W N H O U S E S ( S ã o P a u l o S P ) 5 0 % S o l d A l r e a d y d e l i v e r e d P S V : R $ 4 0 m i l l i o n A p p r e c i a t i o n : - 12

13 REAL ESTATE DEVELOPMENT SELLING INVENTORY & FEEDING RENTAL BUSINESS Metrics 885 properties 630 sold Inventory 255 units (land) Units for Rent Use existing inventory to develop rental business Receivables R$187 million 13

14 REAL ESTATE DEVELOPMENT 1st RESIDENCE RENTAL BUSINESS SÃO PAULO 120k sq.m - Private area Launch subject to funding and appropriate market conditions. Units for Rent. S o u r c e : G o o g l e M a p s / A n i m a t i o n: J H S F 14

15 HOTELS & RESTAURANTS Executive Summary Operator of 4 Hotels & 14 Restaurants under Fasano brand. Growth to come from (i) 4 new hotels in Brazil (each with a restarurant) and (ii) Internationalization (US & Europe). No CAPEX expected.

16 F A S A N O L A S P I E D R A S H O T E L HOTELS AND RESTAURANTS CONTROLLED BY JHSF: 65% P A R I G I R E S T A U R A N T E S Ã O P A U L O HOTELS Acquired in 2007 Operations in SP, Rio, Fazenda Boa Vista and Punta del Este Local & int l pipeline already signed Management agreements using an asset light model (no CAPEX) RESTAURANTS Acquired in 2014 F A S A N O F A Z E N D A B O A V I S T A H O T E L Synergy gains, improvement on profitability 14 operations focused on SP, Rio and Brasilia 16

17 PIPELINE Location: Angra dos Reis, Rio de Janeiro, Brazil Project Status: Under construction Opening: 2017 Location: Salvador, Bahia, Brazil Project Status: Under construction Opening: 1S18 Location: Belo Horizonte, Minas Gerais, Brazil Project Status: Under construction Opening: 1S18 Location: Trancoso, Bahia, Brazil Project Status: Under construction Opening: 2019

18 EXECUTIVE AIRPORT Executive Summary Executive aviation infrastructure provider in highly demanded air traffic of São Paulo. Opportunity based on infrastructure bottleneck of commercial airports. 18

19 EXECUTIVE AIRPORT INVESTMENT RATIONALE Insufficient infrastructure for executive aviation; Commercial airports prioritize commercial aviation; Global trend: segmentation in different airports; Le Bourget Paris Teterboro NY Farnborough London Brazil: 2 nd largest executive aviation fleet in the world; São Paulo: 34% of executive aircraft fleet Source: Airport Consulting Vienna

20 LOCATION CFO s expansion area 3 2 Catarina Fashion Outlet Distance to/from São Paulo 50 km 35 minutes 1 São Paulo Catarina Executive Airport 14 minutes S o u r c e : G o o g l e M a p s PHASE ZERO Capex to go R$33 million Total Capex R$300 million 2,400 meters of runway 5,000 sq.m. of hangars 7,500 sq.m. of patios 20 Picture took in December, 2016

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22 INCOME STATEMENTS 3Q17 Income Statement (R$' million) Recurring Hotels and RE Income Restaurants Development Holding Consolidated Gross Revenue Taxes on Revenue (5.7) (3.9) (0.4) - (10.0) Net Revenue COGS (7.1) (34.9) (8.2) - (50.2) Gross Profit (7.7) Margin (% of Net Revenue) 82% 13% -1545% - 37% Operating Expenses (16.2) (4.7) 4.0 (8.8) (25.7) Commercial Expenses (0.9) - (2.2) (0.0) (3.1) Administrative Expenses (6.0) (4.1) (2.2) (9.5) (21.8) Other Operating Expenses (9.3) (0.6) (0.9) Fair Value of Investment Properties Operating Income (3.7) (8.8) 14.0 Adjusted EBITDA (11.5) (3.1) 12.7 Margin (% of Net Revenue) 66% 3% -2296% - 16% Net Financial Result (36.0) Income Taxes and Social Contribution (7.2) Discontinued Operations - Net Income (29.2) Margin (% of Net Revenue) -37% 22

23 [thousand BRL] 3Q17 2Q17 1Q17 CONSOLIDATED BALANCE SHEET Assets 4,464,170 4,492,062 4,446,647 Current 489, , ,752 Cash and equivalents 14,141 31,545 8,360 Interest earnings bank deposits 33,814 31,755 45,933 Accounts receivable 146, , ,700 Inventory 225,653 95, ,487 Other current assets 30,771 47,817 34,860 Recoverable taxes and contributions 27,918 29,250 30,804 Expenses to appropiate 10,888 15,049 19,608 Non-Current 3,974,575 4,064,409 3,622,895 Accounts receivable 161, , ,681 Taxes and deffered contributions ,992 Inventory 405, , ,952 Other non-current assets 9,386 36,126 36,115 Credit with related parties 92,289 58,291 48,336 Investments 3,691 3,787 4,203 Fixed assets 761, , ,117 Investment property 2,441,819 2,426,098 2,365,497 Intangible 98,565 87,962 88,002 Liabilities 2,303,866 2,298,284 2,190,241 Current 468, , ,633 Suppliers 53,469 62,035 67,944 Loans, financing and debentures 264, , ,484 Social, labor and tax obligations 34,377 32,377 28,499 Deferred income and social contributions taxes 13,283 14,416 16,412 Other obligations 50,498 74, ,294 Dividends to be paid 53,056 53,056 - Non-Current 1,834,925 1,843,880 1,871,608 Loans, financing and debentures 1,051,863 1,069,263 1,113,493 Social, labor and tax obligations 12,939 12,682 12,632 Taxes and deffered contributions 486, , ,706 Other obligations 262, , ,350 Provisions 21,569 22,131 22,427 Shareholder's Equity 2,160,304 2,193,778 2,256,408 Total Liabilities and Shareholder's Equity 4,464,170 4,492,062 4,446,647 23

24 [thousand BRL] 3Q17 2Q17 1Q17 Cash Flow from Operating Activities 2,338 23, ,464 Earnings Before Income Taxes (EBIT) (22,001) 26,684 (4,095) Expenses (revenues) not affecting cash flow Depreciation and amortization 4,539 3,960 3,123 Equity in net income of subsidiaries (30) 214 (48) Interest and monetary variations on loans 54,511 37,667 38,808 Adjustments to present value (257) (1,596) 134 Interest capitalized into fixed asset under construction (7,714) (7,838) (7,938) Commercial expenses - Amortizations of stand Provision for doubtful accounts (7,581) 2,915 (116) Provision for contingencies (526) (332) (806) Provision for stock options plan (635) 1,699 2,050 Fair value of investment properties (10,402) (54,421) (34,838) Variation in current and non-current assets and liabilities Accounts receivable 16,458 23, ,415 Properties for sale (1,218) 82 (3,802) Sales to be appropriated 1, (1,572) Related parties (22,561) (6,860) (37,565) Other assets 19,022 (1,953) (8,072) Advances from clients (8,607) (4,138) (9,026) Other liabilities (10,632) 3,037 15,761 Income and social contribution taxes paid (1,051) (354) (1,949) Cash Flow from Investing Activities (9,905) (18,622) (12,622) Sale (Acquisition) of marketable securities Acquisition of fixed and intangible assets (10,180) (18,621) (12,623) Sale of fixed and intangible assets - (1) 1 Cash Flow from Financing Activities (9,836) 18,803 (312,136) Additions of new loans and financing 37,292 59,276 15,000 Payment of debentures - 9,831 (94,311) Payment of loans and financing (47,128) (50,305) (232,825) Transactions with related parties Cash Flow generated (used) in the period (17,404) 23,185 (61,293) CONSOLIDATED CASH FLOW Cash at the beginning of the period 31,545 8,360 69,653 Cash at the end of the period 14,141 31,545 8,360 24

25 DELEVERAGE & PROFILE Deleveraging balance sheet 2,660 Indebtedness (R$ million) 1,917 1,910 1,973 1,671 1,488 1,256 1,327 1,356 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 (R$ million) 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Adjusted EBITDA Targeting to increase asset turnover, ROE and ROIC improving debt profile

26 REAL ESTATE DEVELOPMENT RECEIVABLES AND INVENTORY ACCOUNTS RECEIVABLE INDICES (base September 2017) FAZENDA BOA VISTA R E C E I V A B L E S I N V E N T O R Y ¹ R$ 187 million ~ R$ 680 million MENA BARRETO R E C E I V A B L E S I N V E N T O R Y ¹ - ~ R$ 20 million TOWN HOUSES MATURITY (base September 2017) 97 R E C E I V A B L E S I N V E N T O R Y ¹ HORTO BELA VISTA - R E C E I V A B L E S I N V E N T O R Y ¹ R$ 45 million ~ R$ 17 million ~ R$ 9 million BOSQUE CIDADE JARDIM ² R E C E I V A B L E S I N V E N T O R Y ¹ - ~ R$ 130 million ¹ Estimated inventory at current market prices. ² Embargoed OTHER R E C E I V A B L E S I N V E N T O R Y ¹ R$ 11 million

27 MALL PERFORMANCE PAST 8 QUARTERS

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