DISCLAMER. to the Company.

Transcription

1 JHSF DAY

2 DISCLAMER Management makes forward-looking statements concerning future events that are subject to risks and uncertainties. These statements are based on its beliefs and assumptions and on information currently available to the Company. Forward-looking statements include statements regarding JHSF s intention, estimates or current expectations or those of its Board of Directors or Executive Officers. Forward-looking statements also include information concerning the Company s possible or presumed future operating results, as well as statements preceded by, followed by, or including the words believes, may, will, continues, expects, envisages, intends, plans, estimates or similar expressions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. JHSF s future results and shareholder value creation may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond the Company s ability to control or predict. 2

3 SPEAKERS AND AGENDA José Auriemo Neto Robert Bruce Harley JHSF Strategy Recurring Income Business Current results Future opportunities Wilmar Rodriguez Hotels & Restaurants Business Challenge: cost reduction New projects Rogério Coelho Lacerda RE Development Business Existing challenges (Cancellations and Embargos) Assets monetization New business model Airport Business Thiago Alonso de Oliveira Funding Strategy 3

4 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

5 ACTUAL GOVERNANCE Fiscal Council Board of Directors Statutory Audit Committee Board of Executive Officers Operations Recurring Income Hotels & Restaurants Real Estate Development Airport Financing Model Fixed capital Asset light Fixed capital Fixed capital Stable cash flow Fix costs diluting Stable cash flow Stable cash flow Monetization CAPEX light Land bank Monetization 5

6 STRATEGY JHSF is turning into a recurring income real estate company, increasing the independence of its business units. Company s 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. Decision-making process based on: Strengthening Operating Income; Streamlining capital allocation; and Initiatives to reduce the cost of funding (equity & debt). 6

7 ALREADY DELIVERING ITS STRATEGY WITH MORE TO COME Increasing Recurring Income Business Revenue Share 90% 82% 63% 48% 29% 9% 91% 10% 18% 37% 52% 71% Recurring Income Non-Recurring Income 2,660 Deleverage 1,265* Headcount reduction ¹ 1,671-51% 1, % 500 Sep-15 Sep-16 Sep ¹ E x c l u d i n g H o t e l s and R e s t a u r a n t s h e a d c o u n t. 7

8 RECURRING INCOME 8

9 Centralized management fully controlling mall operations and tenant mix. RECURRING INCOME BUSINESS MODEL Management Condominium Mall Promotion Fund Parking lot Utilities 9

10 CONSOLIDATED MALL OPERATIONS INDICATORS 10

11 CONSOLIDATED MALL OPERATIONS INDICATORS 12,9% Discount (as % of Revenues) 5,5% 5,1% 6,7% 7,0% 8,5% 7,2% 4,0% 5,1% 6,4% 5,0% 6,0% 4,8% 5,5% 6,7% 6,7% 6,7% 5,8% 4,7% 5,5% 5,4% 13,5% 16,2% Delinquency (as % of Revenues) 4,1% 7,6% 8,0% -1,4% 7,5% 4,5% 5,3% 1,0% 3,3% 5,4% 8,2% -1,4% 2,2% 0,8% 0,7% 0,3% -2,5% 1,0% -0,2% 11

12 RECURRING INCOME HOW DO WE ANTECIPATE VALUE CREATION Existing GLA (no CAPEX): o o Improve revenues through occupation & leasing spread Management operational efficiency GLA expansion: o o o Micro expansions-shorter than 1 year +50% GLA on already existing premium assets Land bank already invested with low execution risk New business model (small malls) 12

13 RECURRING INCOME OUR FUTURE Additional GLA: 5,500 CFO II + 3,500 Shops + 5,000 Joapé - Micro expansions R$18 MN incremental NOI EXPANSION BASED ON: Existing demand Positioning Market share consolidation Additional GLA: 23,000 - SCJ expansion Existing land bank Additional GLA: 24,500 - CFO III Existing land bank Additional GLA: 5, ,700 - SBV and SPN (satellite x offices) WHY BROWNFIELD? High-performing assets with additionally land bank Commercial clustering Attractive IRR & ROIC 13

14 RECURRING INCOME SCJ EXPANSION GLA: 23,000 sq.m Status: Under development I l l u s t r a t i o n 14

15 RECURRING INCOME SCJ EXPANSION - MASTERPLAN I l l u s t r a t i o n 15

16 RECURRING INCOME CFO S 2ND EXPANSION Expected CAPEX: R$21 MN GLA: 4,500 sq.m # of Stores: 23 Status: construction works started in early December. Expected opening on 4Q18. EXPANSION II AREA PARKING LOT 512 parking spaces EXPANSION S FRONT AREA I l l u s t r a t i o n PARKING LOT PAVING AREA 140 parking spaces 16

17 RECURRING INCOME CFO S 3RD EXPANSION Expected CAPEX: R$90 MN GLA: 24,500 sq.m # of Stores: 82 A Status: TBA B Legend: A Existing Area B Expansion I l l u s t r a t i o n 17

18 RECURRING INCOME Shops Cidade Jardim Expected CAPEX: R$18 MN GLA: 3,500 # of Stores: 50 Status: construction works started in late November. Expected opening on 4Q18. I m a g e s a r e for illustration p u r p o s e s o n l y. The p r o d u c t may c h a n g e w i t h o u t n o t i c e. 18

19 RECURRING INCOME GLA EXPANSION Q17 CFO Expansion II CJ SHOPS Joapé SBV Expansion SPN Expansion SCJ Expansion CFO Expansion III Potential GLA SCJ SBV SPN CFO CJ SHOPS SPN 19

20 HOTELS & RESTAURANTS 20

21 HOTELS & RESTAURANTS HOTELS RESTAURANTS Operations in São Paulo, Rio de Janeiro, Fazenda Boa Vista and Punta del Este Local & int l pipeline already signed Management agreements using an asset light model (no CAPEX) Acquired in 2014 Synergy gains, improvement on profitability 16 operations focused on São Paulo, Rio de Janeiro and Brasilia 21

22 HOTELS & RESTAURANTS INDICATORS Average Daily (R$) REVPAR (R$) Occupancy Rate (%) % 73% 68% 63% 61% 65% 60% 51% 54% Number of Couverts ('000) Average Couvert (R$)

23 HOTELS & RESTAURANTS HOW DO WE ANTECIPATE VALUE CREATION Operational Efficiency o o Cost management Cash conversion to revenues Growth come from: o o o 4 new hotels in Brazil (each with a restaurant) Internationalization (US & Europe) No CAPEX expected Lower costs + Revenue increase 23

24 POTENTIAL GROWTH 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:

25 REAL ESTATE DEVELOPMENT 25

26 REAL ESTATE DEVELOPMENT DELIVERED PROJECTS - HISTORICAL FIGURES 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 : - 26

27 REAL ESTATE DEVELOPMENT SELLING INVENTORY & FEEDING RENTAL BUSINESS Metrics o 885 properties/ 630 sold Inventory o 255 units (land)/ 1,198,500 sq.m. o Developer spread Units for Rent: Use for inventory 27

28 REAL ESTATE DEVELOPMENT INVENTORY IN SÃO PAULO AND SALVADOR MENA BARRETO (delivered) TOWN HOUSES (delivered) Inventory: R$20 million HORTO BELA VISTA (delivered) Inventory: R$17 million BOSQUE CIDADE JARDIM (embargoed) Inventory: R$9 million Inventory: R$130 million 28

29 REAL ESTATE DEVELOPMENT RESIDENCE RENTAL BUSINESS SÃO PAULO Private area: approx. 100,000 sq.m. Units for Rent: R$100/ sq.m. Funding: at project level (equity) S o u rce: Google M a p s / A n i m a t i o n : J H S F 29

30 REAL ESTATE DEVELOPMENT SÃO PAULO R e s e r v a Project¹ A l b e r t o P e n t e a d o P r o j e c t ¹ ¹ I m a g e s a r e f o r illustration p u r p o s e s o n l y. T h e p r o d u c t may change without n o t i c e. 30

31 REAL ESTATE DEVELOPMENT HOW DO WE ANTECIPATE VALUE CREATION Land bank development: o o o o o o Rental business 100,000 sq.m in São Paulo, at Cidade Jardim neighborhood Rental value/ sq.m/ month: R$ Funding at project level (equity) Expected development period: 5 years Alternative: assets sale 32

32 EXECUTIVE AIRPORT 33

33 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 Distance to/from São Paulo 50 km 35 minutes PHASE ZERO Capex to go: R$33 million Total Capex: R$300 million 1,940 meters of runway Total of 2,400 meters 5,000 sq.m. of hangars 7,500 sq.m. of patios Inauguration: 2H18 Expansions with boosted IRR 14 minutes 32

34 PROJECT STATUS O c t o b e r,

35 FINANCIALS 36

36 DELEVERAGE & PROFILE Deleveraging balance sheet 2,660 (R$ million) 1,917 1,910 1,973 1,671 1,488 1,256 1,327 1,356-51% Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Adjusted EBITDA Targeting to increase asset turnover, ROE and ROIC improving debt profile

37 r j h s f. c o m. b r 39