Discussion Material October, 2017

Transcription

1 Discussion Material October, 2017 ParkShoppingCanoas Parque Getúlio Vargas, Canoas (RS) 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 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 13.2% in NOI and 8.2% in EBITDA. A Seasoned 43-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 76.6% and 774,991 sq.m. of total GLA 2, besides 2 office towers for lease. Value Creation Market capitalization of R$14.6 billion 3, the largest among publicy traded real estate companies in South America; 97.7% of average occupancy rate in 2Q17; 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. Historical growth strategy breakdown (% of total GLA 2 ) Acquisitions 5% Offices for lease 10% Interest, management and control in properties 19/20 19/20 Greenfields 64% Expansions 21% 78.2% 1 CAGR: Compound Annual Growth Rate since Jun-12 (LTM). 2 GLA: Gross Leasable Area. 3 Share price of R$73.09 on August 31 st, 2017 (Bloomberg). 4 Over Company s properties (18 shopping centers and 2 office towers complexes). 5 % of Gross Leasable Area of shopping centers and office towers. Managed properties 4 Properties with interest of 50% or 4 more Portfolio ownership 5 3

4 Tenants Sales 10 Years of IPO October 2017 GLA growth since the IPO in 2007 Since the IPO Pre-IPO 38% After IPO 62% R$2.3 B 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 eight malls added since the IPO 279.5k sq.m. of GLA was turned-over +4.9x 103.4k sq.m. of international brands opened 24% of GLA for international brands in Jun-17 R$7.0 B invested in new projects and acquisitions since the IPO = % owned GLA 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 shopping centers delivered since Jul-07 minus its net CAPEX 2 Brazilian malls according to Brazilian Shopping Centers Association (ABRASCE) 3 Represented by the FFO Jul-17 4

5 10 Years of IPO Segments evolution in Multiplan s portfolio 39% +4.0% 36% 39% 33% +5.3% 21% 18% 21% 20% Dec Jun % 10% 10% 8% 7% 15% +7.5% 8% 11% 8% +9.1% 30% 22% 23% 22% Vestuário Apparel Artigos Miscellaneous Diversos Home Lar & Office & Food Alimentação Court & Gourmet Escritório Area Services Serviços Legend: 39% 39% Gross Leasable 36% Area 36% (GLA) composition: Dec-17 Dec-17 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% 5

6 Leading shopping center portfolio in Brazil Multiplan s Portfolio Footprint: Portfolio s Market Share: SHOPPINGS SHOPPINGS SHOPPINGS ABL Total ABL (m²) Total ABL (m²) Total (m²) Vendas (R$) Vendas Venda (R$) Shopping Centers (2016) Total GLA (2016) Tenants Sales (2016) 558 malls 15,237,000 sq.m. R$157.9 billion Other Shopping Centers 96.8% Other Other Shopping Shopping Centers Centers 3.2% 96.8% 96.8% AL 3.2% Other Shopping Centers 3.2% 94.9% Other Other Shopping Shopping 5.1% 5.1% Centers Centers 94.9% 94.9% 5.1% Other Shopping Centers 91.3% Other Other Shopping 8.7% Shopping 8 Centers Centers 91.3% 91.3% DF MG SP PR RJ Multiplan s Portfolio Size: States Exposed to: RS 18 Shopping Centers 775 thousand sq.m. of GLA 54% of country s population 72% of country s GDP, Abrasce and IBGE 6

7 Operating Efficiency Tenants sales: Multiplan & USA malls Tenants sales USD/sq.f. ³ (satellite stores only) Operating efficiency: Multiplan & Brazilian malls Tenants sales USD/sq.f.³ (anchor + satellite stores) Rental Revenue USD/sq.f.³ (anchor + satellite stores) % % % 41 USA malls¹ Multiplan's malls Brazilian malls² Multiplan's malls Brazilian malls² Multiplan's malls Food Court, Gourmet Area and Minimarkets 14.9% Multiplan (Jun-2017) 4 Home & Office 7.5% Store Segment GLA Distribution Apparel 35.9% Food Court, Gourmet Area and Minimarkets 21.0% USA (Sep-2016) 5 Home & Office 7.0% Apparel 50.0% Miscellaneous 18.3% Miscellaneous 11.0% 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$. Services 23.4% 4. Excluding Offices and reclassifying Minimarkets from Miscellaneous to Food Court, Gourmet Area and Minimarkets. 5 Source: ICSC International Council of Shopping Centers and JLL Jones Lang LaSalle. Services 11.0% 7

8 Shopping Centers Sales Evolution of tenants sales (R$) CAGR: +7.7% +8.7% 3.5 B 3.0 B 3.2 B 3.2 B 2.6 B 2Q13 2Q14 2Q15 2Q16 2Q17 Sales Jul-17: +9.5% Evolution of Same Area and Same Store Sales growth (%) 4.1% 5.0% 2.5% 5.0% 2.5% 0.0% 0.0% -2.5% 3.2% 2.7% 0.6% 2.3% 2.8% 3.9% 4.2% 4.1% 2.1% 2.5% 1.6% 5.6% 2.3% 3.2% 3.2% 2.8% 2.7% 0.6% 3.9% 2.1% 4.2% 1.6% 4.1% 2.3% 3.2% 1.5% 2.8% 3Q15 4Q15 1Q16 2Q16 3Q16 7.8% 6.7% 2Q16 3Q16 4Q16 1Q17 2Q17 Same Area Sales Same Store Sales Turnover in GLA (sq.m.) and as % of total GLA (%) Breakdown of Same Store Sales per segment 5.1% 35, % 34, % 30, % 36, % 33, Jun-17 (LTM) Same Store Sales 2Q17 x 2Q16 Anchor Satellite Total Food Court & Gourmet Area % +10.8% Apparel +5.8% +1.2% +2.6% Home & Office +21.8% +22.4% +22.3% Miscellaneous +5.2% +1.4% +1.9% Services +2.2% +18.4% +14.5% Total +7.5% +6.5% +6.7% 8

9 98.1% 98.6% 98.5% 98.8% 99.0% 98.6% 98.1% 98.0% 97.9% 97.4% 97.3% 97.4% October 2017 Selected Operating Data Evolution of occupancy cost Evolution of delinquency rate 13.7% 12.7% 12.6% 13.1% 12.8% 13.0% 6.0% 12.7% 5.4% 13.1% 5.5% 13.1% 5.2% 13.0% 5.5% 13.1% 13.0% 5.4% 5.5% 5.3% 5.4% 5.6% 5.6% 5.3% 7.7% 7.2% 7.4% 7.5% 7.4% 7.5% 7.3% 7.8% 7.6% 7.4% 7.5% 7.7% 2Q13 2Q14 2Q15 2Q16 2Q17 Five 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 Rent as % of Sales Other as sales % Other as % of Sales Occupancy cost quarters Average 2.0% 2.1% 1.5% 4.0% 2.4% 3.0% 1.3% 2Q13 2Q14 2Q15 2Q16 2Q17 Gross Delinquency Rate Net Delinquency Rate 1 Evolution of shopping center occupancy rate: 2Q13 2Q % 98.4% 98.4% 97.6% 97.7% 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1 Net Dellinquency Rate started being reported in 1Q16 9

10 % of Rental Revenues October 2017 Key Money 0.5% Others 1 1.5% Services 7.6% Parking 14.6% 9.6% 10.6% Gross revenue breakdown in 2Q17 Rent 75.8% 9.4% Merchandising 7.6% 6.9% Diversified Revenues Same Store Rent growth (YoY) 14.1% Base rent 88.7% Overage 3.7% 10.4% 9.6% 25% 23% 21% 19% 17% 15% 13% 11% 9% 7% 5% 3% 1% 8.8% Rental revenue diversification: Top retail chains in 2Q17 Top 10: 12.9% Number of Retail Chains 7.4% 7.1% Average Real SSR 8.7% Top 25: 22.9% 5 years: 1.4% Since IPO: 2.7% 8.6% Q17 2Q17 Real SSR growth 2 5.7% 2.5% 1.5% 5.7% 5.0% 4.0% 2.5% 3.0% 2.4% (2.2%) (1.0%) 0.5% 1 Others includes real estate for sale, straight-line effect and other revenues. 2 Real SSR considering the IGP-DI adjustment effect in each period. 10

11 Rental Revenue Analysis Rental revenue breakdown (R$) and occupancy rate (%) 97.6% 98.2% 98.7% 97.8% 98.1% 97.8% 97.6% 98.4% 98.4% 97.6% 97.7% 97.6% 98.2% 98.7% 97.8% 98.1% 97.8% 97.6% 98.4% 98.4% 97.6% 97.7% M M 94.3 M M 81.5 M M 68.8 M 94.3 M 54.4 M 81.5 M 68.8 M 54.4 M 83.1% 79.3% 85.8% 83.5% 86.3% 85.7% 83.1% 79.3% 85.8% 83.5% 86.3% 85.7% M M M M M M M M186.2 M M 88.0% 88.0% 88.7% 87.3% 87.9% 89.4% 88.7% 87.3% 87.9% 89.4% 0.5% 1.7% 0.4% 0.8% 1.0% 0.3% 0.2% 0.6% 0.3% 1.1% 0.8% 0.5% 1.7% 0.4% 0.8% 1.0% 1.7% 0.2% 0.6% 0.3% 1.1% 0.8% 2Q07 2Q08 2Q09 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 2Q17 2Q07 2Q08 2Q09 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 2Q17 rie4 Overage Merchandising Base rent (and as % of total) Average occupancy rate (%) Rent loss (%) 11

12 Net Operating Income (NOI) Rental revenue growth breakdown (R$) Evolution of properties expenses (R$) and as % of properties revenues¹ +12.4% +16.5% +21.6% -1.5% M Rental revenue 2Q M +1.2 M +3.2 M +13.2% M Base rent Overage Merchand. Rental revenue 2Q M 34.2 M 33.6 M 27.4 M 25.6 M 17.8% 11.8% 10.1% 13.0% 11.4% 2Q13 2Q14 2Q15 2Q16 2Q Evolution of Net Operating Income (NOI) (R$) and margin (%) CAGR: +13.2% +7.6% +13.9% M M 1,018.3 M M M M M M 87.0% 88.6% 89.5% 87.5% 86.1% 88.5% 88.1% 87.2% 2Q16 ¹ Considers properties rental and parking revenues. 2Q17 Jun-12 (LTM) Jun-13 (LTM) Jun-14 (LTM) Jun-15 (LTM) Jun-16 (LTM) Jun-17 (LTM) NOI NOI margin 12

13 260. 0M M M 20. 0M M M M M 10. 0M October 2017 Financial Results Evolution of G&A Expenses (R$) EBITDA (R$) 37.0 M -7.9% 68.9 M -4.4% 65.9 M M +8.7% M +1.4% M M 34.1 M 72.4% 74.9% 71.8% 71.1% 2Q16 2Q17 1H16 1H17 2Q16 2Q17 1H16 1H17 Net Income (R$) FFO (R$) +5.9% M M 98.7 M 36.9% 36.6% 30.8% -5.9% M 28.2% 98.7 M M 52.1% 36.6% +14.2% +5.9% M 56.6% 36.9% -0.8% M M 46.5% 45.0% 2Q16 2Q17 1H16 1H17 2Q16 2T16 2Q17 2T17 1H16 1H17 13

14 Cash generation and debt position (R$) as of June 30, 2017 Debt and Cash Debt indexes on June 30, 2017 Debt indexes evolution 2,989.5 M Financial Position Analysis ¹ Jun. 30, 2017 Others 6.9% Others 3.4% 1,973.7 M Net Debt/EBITDA 2.40x Gross Debt/EBITDA 3.63x EBITDA/ Net Financial Expenses 3.55x TR 42.0% TR 32.9% 1,015.8 M M M Net Debt/Fair Value 11.4% Total Debt/Shareholders Equity 0.58x Net Debt/Market Cap 15.1% CDI 51.1% CDI 63.7% Weighted Average Maturity (Months) 47 Cash Gross Debt Net Debt EBITDA (LTM) FFO (LTM) Jun-16 Jun-17 Weighted average cost of funding vs. Selic rate (% p.a.) 13.75% 14.25% 14.25% 14.25% 14.25% 14.25% 13.75% 12.75% 12.25% 11.75% 10.75% 11.00% 11.00% 12.29% 12.81% 13.09% 13.22% 13.23% 13.50% 13.18% 10.61% 10.00% 12.18% 9.34% 11.53% 10.41% 10.50% 10.54% 10.96% 10.25% 9.00% 9.87% 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 Dec-16 Mar-17 Jun-17 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) 14

15 Indebtedness 4.00x 3.00x 2.00x Evolution of Net Debt/EBITDA x 2.43x 2.40x 3.04x 2.39x 2.40x 1.00x Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Lowest covenant (4.00x) Covenant ¹ Limit Jun-17 Debt Volume Status Net Debt/EBITDA <= 4.00x 2.40x 1,254.7 M Comply EBITDA/Net Financial Expenses >= 2.00x 3.55x M Comply Total Debt/Total Asset <= 0.50x 0.35x 59.2 M Comply EBITDA Margin >=20.0% 74.9% 59.2 M Comply Total Debt/Shareholders Equity <= 1.00x 0.58x 34.8 M Comply Total debt w ith financial covenants Financial Covenants 1,313.9 M Debt per type (%) Debt amortization schedule (R$) Property Acquisition 4% Cash (Jun-17) FFO (LTM) 482 M 1,016 M 2H M Project Finance 36% Capital Markets 33% M 404 M 507 M Bank Loans 27% M 404 M 405 M M 1 EBITDA and Net Financial Expenses are the sum of the last 12 months. 15

16 Recent Transactions New debt (CRI) Dec-16 Private Capital Increase Mar-17 Amount R$300.0 M Price 95.0% of CDI Amount R$600.0 M Interest Semi-annually Price R$58.50/share Term 6 years New Shares 10,256,411 Amortization Bullet in 2022 Warranty 39.77% of BSS¹ % of Total Shares 5.12% National Rating AAA.Br New debt (CRI) Jun-17 Bank Loan Pre-payment Jun-17 Amount R$300.0 M Price 95.0% of CDI Interest Semi-annually Term 6 years Amortization Bullet in 2023 Warranty 39.77% of BSS¹ National Rating AAA.Br Amount R$300.0 M Price 108% of CDI Interest Semi-annually Term 3 years Initial Amortization Date 2019 Pre-payment Date BarraShoppingSul located in the city of Porto Alegre (Rio Grande do Sul state). 16

17 R$731 Million Invested in Stake Acquisitions R$59 million in NOI¹ in 20,938 sq.m. of GLA October 2017 NOI Portfolio s (LTM): R$59.0M NOI BarraShopping I MorumbiShopping BarraShopping II ParkShoppingBarigüi Stake acquired: 10.3% Stake acquired: 8.0% Stake acquired: 4.5% Stake acquired: 9.3% Stake s LTM NOI¹: R$24.8 M Stake s LTM NOI¹: R$15.5 M Stake s LTM NOI¹: R$11.5 M Stake s LTM NOI¹: R$7.2 M Purchase price: R$311.2 M Purchase price: R$184.7 M Purchase price: R$143.9 M Purchase price: R$91.0 M October 2016 October 2016 December 2016 January 2017 (1) Considering the NOI for the past 12-month period ended on Jun-16 for BarraShopping (1) and MorumbiShopping, and Sep-16 for BarraShopping (2) and ParkShoppingBarigüi, weigthed by the acquired stakes 17

18 Project Development 57,600 sq.m. of GLA are being delivered in 2017 (+7% of total GLA) RibeirãoShopping Medical Center PatioSavassi Expansion VillageMall Expansion ParkShoppingCanoas + 6,200 sq.m. + 2,300 sq.m. + 1,100 sq.m.¹ + 48,000 sq.m. ¹ The area refers to the 1 st phase of the expansion. 18

19 48,000 sq.m. of GLA Greenfield Under Construction Multiplan s Stake: 80% Opening: Nov-17 Leased GLA: 90.0% CAPEX (1) : R$359.3 M Key Money (1) : R$26.5 M 3 rd year NOI (2) : R$36.0 M 3 rd year NOI yield (2) : 10.8% (1) Considering Multiplan s interest in the CAPEX of 94.7% (2) Considering Multiplan s interest of 80.0% 19

20 RibeirãoShopping Medical Center Expansion Pátio Savassi Expansion II RibeirãoShopping Medical Center PátioSavassi Opening: August 9 th ,200 sq.m. of GLA Multiplan s stake: 100.0% Leased GLA: 72.1% CAPEX (1) : R$35.5 M Expected opening: 4Q17 2,300 sq.m. of GLA Multiplan s stake: 96.5% Leased GLA: 100.0% CAPEX (2) : R$34.9 M (1) Considering Multiplan s interest in the CAPEX of 100.0%. (2) Considering Multiplan s interest in the CAPEX of 96.5%. 20

21 VillageMall Expansion I Recent Event: Announced on July 26 th 2017, the expansion will add 34 new operations that will increase the mall's GLA by 11%; The new areas will meet the demand from consumers, contributing to improve even further the shopping center s store mix; After the expansion, VillageMall will have 135 stores and 28,400 Expansion I Total GLA Net GLA Added 3,800 sq.m. 2,700 sq.m. Operations 34 Opening Dates CAPEX (R$) 1 st Phase: Nov-17 2 nd Phase: May M sq.m. of GLA. VillageMall Expansion I at VillageMall - Artist s rendering - project subject to modification 21

22 Recent Event: DiamondMall Proposed Stake Acquisition On September 20 th 2017, Multiplan announced the approval by Clube Atlético Mineiro of the proposed acquisition of a 50.1% stake in DiamondMall for R$250.0 million, subject to suspensive clauses; The existing ground lease will be extended by four years (until November 2030) and its current cost will be reduced by the acquired stake of 50.1% of the property. DiamondMall Total GLA 21,384 sq.m. Stores month sales (Jun-17) 826 USD/sq.foot 2Q17 occupancy rate 98.7% DiamondMall DiamondMall inside view 22

23 NOI and Stock Price Evolution LTM NOI (1) and stock price evolution since IPO MULT3: +14% Oct 17, 2012 (2) LTM NOI (3) of R$570 mn R$63.18/share NOI: +79% MULT3: +3% Jun 30, 2017 LTM NOI (4) of R$1,018 mn R$65.32/share Sep 28, 2017 R$72.10/share 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 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 Jul-16 to Jun

24 MULT3 Performance Evolution of average daily traded volume Examples of Indexes that MULT3 integrates October , , , , , M 31.7 M 38.6 M 39.5 M 50.8 M Emerging Markets All-Word ex North America Index USD Emerging BMI Index H17 Average daily traded volume (R$) Average daily traded shares Multiplan IBOV +37.7% +25.8% Traded Volume (15 day average) Multiplan M Dec Jun-15 Dec-15 Jun-16 Dec M Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 ¹ Base Date: December 31, Base Date: April 30, 2015 Source: Bloomberg Evolution of MULT3 since inception in Bovespa Index 1 Evolution of MULT3 since inception in IBrX 50 Index 2 MULT3 / IBOV: +1,191 b.p. R$ Multiplan +23.2% MULT3 / IBrX50: R$ 80.0 M ,304 b.p. IBrX % 80.0 M 70.0 M 60.0 M 50.0 M 40.0 M 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 Mar-16 Aug-16 Jan-17 Jun-17 24

25 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, Abrasce and reports from the following public companies: Aliansce, Brmalls, CCP, General Shopping, Iguatemi, JHSF and Sonae Sierra. Total municipalities: 5,561 25

26 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