Quarterly information - ITR September 30, 2015

Transcription

1 - ITR KPDS

2 - ITR Contents Independent auditors' report on quarterly information 53 Balance sheets 55 Statements of income 59 Statements of comprehensive income 61 Statements of changes in shareholders equity 62 Statements of cash flows 64 Statements of added value 68 Notes to the quarterly information 70 2

3 Disclaimer This document may contain prospective statements, which are subject to risks and uncertainties as they are based on expectations of the Company s management and on available information. The Company is under no obligation to update these statements. The words "anticipate, wish, "expect, foresee, intend, "plan, "predict, forecast, aim" and similar words are intended to qualify statements. Forward-looking statements refer to future events that may or may not occur. Our future financial situation, operating results, market share and competitive position may differ substantially from those expressed or suggested by these forward-looking statements. Many factors and values that may impact these results are beyond the Company s ability to control. The reader/investor should not make a decision to invest in Multiplan shares based exclusively on the data disclosed in this report. This document also contains information on future projects which could differ materially due to market conditions, changes in laws or government policies, changes in operational conditions and costs, changes in project schedules, operating performance, demands by tenants and consumers, commercial negotiations or other technical and economic factors. The Company may alter these projects totally or in part with no prior notice. Non-accounting information has not been reviewed by external auditors. In this release the Company has chosen to present the consolidated data from a managerial perspective, in line with the accounting practices in force on December 31, 2012, as disclosed below. For more detailed information, please check our Financial Statements, Reference Form (Formulário de Referência) and other relevant information on our investor relations website

4 Managerial Report During fiscal year 2012, the Accounting Standards Committee (CPC) issued the following pronouncements that impacted the Company s activities and its subsidiaries including, among others: (i) CPC 18 (R2) - Investments in affiliated companies, subsidiaries and in jointly controlled projects; (ii) CPC 19 (R2) - Joint business. These pronouncements required that they be implemented for fiscal years starting January 1, The pronouncements determine, among other issues, that joint projects be recorded on the financial statements via equity pick-up. In this case, the Company is no longer consolidating the 50% interest in Manati Empreendimentos e Participações S.A., a company that owns a 75% stake in Shopping Santa Úrsula, and a 50% stake in Parque Shopping Maceió S.A., a company that has a 100% ownership interest in the shopping center of the same name on a proportional basis. This report adopted the managerial information format and, for this reason, does not consider the requirements of CPCs 18 (R2) and 19 (R2) to be applicable. Thus, the information and/or performance analyses presented herein include the proportional consolidation of Manati Empreendimentos e Participações S.A. and Parque Shopping Maceió S.A. For additional information, please refer to note 9.4 of the Financial Statements Report dated September 30, Multiplan is presenting its quarterly results in a managerial format to provide the reader with a more complete perspective on operational data. Please refer to the Company s financial statements on its website ( to access the Financial Statements in compliance with the CPC. Please see on page 33 in this report the changes determined by Technical Pronouncements CPC18 (R2) and CPC19 (R2), and the reconciliation of the accounting and managerial numbers. 4

5 Table of Contents 01. Consolidated Financial Statements Fair Value of Investment Properties According to CPC Operational Indicators Gross Revenues Properties Ownership Results Shopping Center Management Results Shopping Center Development Results Real Estate for Sale Results Financial Results Project Development MULT3 Indicators & Stock Market Portfolio Ownership Structure Operational and Financial Data Reconciliation between IFRS (with CPC 19 R2) and Managerial Report Appendices Glossary and Acronyms 55 5

6 The Evolution of Multiplan's Financial Indicators R$ Million 2007 (IPO)¹ Change % (2014/2007) CAGR % (2014/2007) Gross Revenue , , , % 19.0% Net Operating Income % 21.9% EBITDA % 20.7% FFO % 15.6% Net Income ,639.7% 50.4% ¹2007 EBITDA adjusted for expenses related to the Company's IPO. 1,185 1, , Gross Revenue Net Operating Income EBITDA FFO Net Income Sep-08 (LTM) Sep-09 (LTM) Sep-10 (LTM) Sep-11 (LTM) Sep-12 (LTM) Sep-13 (LTM) Sep-14 (LTM) Sep-15 (LTM) Historical Performance of Multiplan s Results (R$ Million) Overview Multiplan Empreendimentos Imobiliários S.A. is one of the leading shopping center operating companies in Brazil, established as a full service company that plans, develops, owns and manages one of the largest and highest-quality mall portfolios in the country. The Company also is strategically active in the residential and commercial real estate development sectors, generating synergies for shopping center-related operations by creating mixed-use projects in adjacent areas. At the end of 3Q15, Multiplan owned 18 shopping centers with a total GLA of 768,290 m² - with an average interest of 73.8% - of which 17 shopping centers were managed by the Company, with over 5,400 stores and estimated annual traffic of 180 million visitors. Multiplan also owned - with an average interest of 92.4% - two corporate office complexes with total GLA of 87,558 m², representing total GLA of 855,848 m². 6

7 Against the wind: Multiplan s shopping centers preserve solid operating metrics in a challenging environment; a sound balance sheet leaves space for new opportunities NOI REACHES R$219 MILLION AND FFO HITS R$102 MILLION IN 3Q15 Same Store Rent grows 6.8%, implying a real increase of 2.4% in 3Q15. The result is even more meaningful given the 8.8% SSR increase in 3Q14. Occupancy rate stands strong at 98.1% in the quarter, reflecting the portfolio s resiliency. Recent event: Two small expansions totaling 2,600 m² of GLA added international brands to Pátio Savassi and ParkShoppingBarigüi in October, enhancing foot traffic. Occupancy cost remains flat YoY at 13.0%, compared to 13.1% recorded in 3Q14. Common expenses control enabled this result. Rent loss stood at 0.4% in 3Q15, compared to 0.8% in 3Q14. Tenants Same Area Sales increases 2.7% in 3Q15 (compared to 2.8% in 2Q15), benefited by tenant mix changes and in spite of the weak economic scenario. Evolution of Same Store Rent 10.1% 8.8% 9.2% 9.5% 4.1% 2.7% 3.4% 4.1% 7.0% 6.8% 2.4% 2.4% 5.8% 5.9% 5.6% 5.2% 4.5% 4.4% 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Real SSR IGD-DI Adjustment Effect Evolution of Occupancy Rate and Cost 98.4% 98.1% 98.5% 98.1% 98.8% 98.1% 12.7% 13.1% 13.1% 13.0% 13.1% 13.0% 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 Occupancy Cost Occupancy Rate Rental revenue increase of 8.3% drives NOI growth, of 6.6% in 3Q15. NOI totaled R$219.0 million in the quarter, with an 88.1% 7

8 margin, and in the last 12 months NOI + Key Money was R$944.4 million, equivalent to R$5.01 per share. Evolution of 12-Month NOI Cost of funding at 12.81%, 144 b.p. below Selic rate at the end of September Net debt was R$1,901 million, equivalent to 2.4x the last 12-month EBITDA. Net debt also represented only 11.9% of the properties fair value. Net income was R$58.6 million and FFO achieved R$102.3 million in the quarter. In the last 12 months, the FFO reached R$518.7 million, equivalent to R$2.76 per share, an increase of 8.7% in spite of the hike in interest rates that led to higher financial expenses. 8

9 1. Consolidated Financial Statements - Managerial Report (R$'000) 3Q15 3Q14 Chg. % 9M15 9M14 Chg. % Rental revenue 199, , % 595, , % Services revenue 29,327 30, % 82,658 89, % Key money revenue 6,873 9, % 20,648 29, % Parking revenue 41,400 37, % 127, , % Real estate for sale revenue 4,452 30, % 17,393 84, % Straight line effect 7,533 13, % 24,775 31, % Other revenues 2,345 1, % 3,991 3, % Gross Revenue 291, , % 871, , % Taxes and contributions on sales and services (29,018) (29,117) 0.3% (85,806) (81,614) 5.1% Net Revenue 262, , % 785, , % Headquarters expenses (32,640) (29,534) 10.5% (91,142) (85,616) 6.5% Stock-option expenses (2,861) (4,045) 29.3% (9,812) (10,671) 8.0% Shopping centers expenses (28,393) (26,905) 5.5% (73,398) (77,290) 5.0% Office towers for lease expenses (1,263) (3,754) 66.4% (8,049) (9,723) 17.2% New projects for lease expenses (4,747) (2,372) 100.2% (11,902) (11,198) 6.3% New projects for sale expenses (1,230) (1,983) 38.0% (3,177) (7,985) 60.2% Cost of properties sold (4,332) (17,875) 75.8% (16,856) (51,253) 67.1% Equity pickup 4 (716) n.a , % Other operating income/expenses (5,030) (4,680) 7.5% (9,636) 5,061 n.a. EBITDA 182, , % 561, , % Financial revenues 11,948 8, % 38,135 27, % Financial expenses (63,473) (50,555) 25.6% (177,627) (148,831) 19.3% Depreciation and amortization (39,650) (41,996) 5.6% (118,140) (121,347) 2.6% Earnings Before Taxes 91, , % 304, , % Income tax and social contribution (28,437) (26,749) 6.3% (67,138) (58,564) 14.6% Deferred income and social contribution taxes (4,139) (6,995) 40.8% (12,848) (24,439) 47.4% Minority interest % 202 (18) n.a. Net Income 58,556 68, % 224, , % (R$'000) 3Q15 3Q14 Chg. % 9M15 9M14 Chg. % NOI 219, , % 665, , % NOI margin 88.1% 87.0% 106 b.p. 89.1% 87.2% 185 b.p. NOI + Key Money 225, , % 686, , % NOI + Key Money margin 88.4% 87.5% 87 b.p. 89.4% 87.8% 161 b.p. Property EBITDA 189, , % 580, , % Property EBITDA margin 73.1% 73.8% 75 b.p. 75.3% 76.9% 154 b.p. EBITDA (Shopping Center + Real Estate) 182, , % 561, , % EBITDA margin 69.4% 67.0% 238 b.p. 71.5% 70.5% 96 b.p. Net Income 58,556 68, % 224, , % Net Income margin 22.3% 24.5% 223 b.p. 28.6% 30.2% 162 b.p. Adjusted Net Income 62,695 75, % 237, , % 9

10 Adjusted Net Income margin 23.9% 27.0% 316 b.p. 30.2% 33.2% 301 b.p. FFO 102, , % 355, , % FFO margin 39.0% 42.1% 317 b.p. 45.2% 48.2% 300 b.p. 2. Fair Value of Investment Properties According to CPC 28 Multiplan valued its investment properties internally and assessed their fair value based on the Discounted Cash Flow (DCF) methodology. The Company calculated the present value of the future cash flows using a discount rate based on the Capital Asset Pricing Model (CAPM). Risk and return assumptions were considered based on (i) studies conducted and published by Mr. Aswath Damodaran (Professor at New York University), (ii) stock market performance of Multiplan shares (Beta), in addition to (iii) macroeconomic projections published in the Central Bank s Focus Report, and (iv) data on the risk premium of the domestic market (country risk measured by the Emerging Markets Bond Index Plus Brazil). Using these assumptions, the Company estimated a weighted average, nominal and unleveraged, discount rate of 15.49% on of, as a result of a basic discount rate of 14.97% calculated according to CAPM, and a weighted average risk spread of 50 base points. The risk spread was calculated according to internal analysis and added to the basic discount rate in a range between zero and 200 base points for each shopping mall, office tower and project evaluation. Shareholders cost of capital Sep Risk free rate 3.49% 3.49% 3.53% 3.57% Market risk premium 6.11% 6.11% 6.02% 5.74% Adjusted beta Sovereign risk 219 b.p. 230 b.p. 205 b.p. 184 b.p. Spread 50 b.p. 44 b.p. 43 b.p. 59 b.p. Shareholders cost of capital - US$ nominal 11.01% 10.65% 10.66% 10.25% Inflation assumptions Inflation (Brazil) 6.53% 6.53% 5.98% 5.47% Inflation (USA) 2.40% 2.40% 2.30% 2.30% Shareholders cost of capital - BRL nominal 15.49% 15.11% 14.64% 13.66% The investment properties valuation reflects the market participant concept. Therefore, the Company does not consider in the discounted cash flows calculation taxes on revenues, income taxes, revenue and expenses relating to management and brokerage services. The future cash flow of the model was estimated based on the properties individual cash flows, including the net operating income (NOI), recurring Key Money (based only on mix changes, except for projects under development and future projects), revenues from transfer fees, investments in revitalization, and investments in constructions in progress. Perpetuity was calculated assuming a real growth rate of 2.0% for shopping centers and zero for office towers. 10

11 The Company classified its investment properties in accordance with their status. The table below describes the fair value calculated for each category of property and presents the amounts in the Company s share: Fair Value of investment properties Sep Shopping malls and office towers in operation ¹, ² ³ R$ 15,392 M R$ 15,683 M R$ 14,089 M R$ 13,418 M Projects under development (disclosed) ¹, ² ³ R$ 132 M R$ 32 M R$ 123 M R$ 715 M Future projects (not disclosed) R$ 346 M R$ 284 M R$ 430 M R$ 569 M Total R$ 15,870 M R$ 15,999 M R$ 14,642 M R$ 14,702 M ¹ In 2012, the JundiaíShopping, ParkShopping Campo Grande, Village Mall, ParkShopping Corporate, and Expansion VI of the RibeirãoShopping projects were completed and their assets transferred from the line Projects under development to Shopping malls and office towers in operation. ² In 2013, the Expansion VII and Expansion VIII projects of RibeirãoShopping and Morumbi Corporate were completed, and their assets were transferred from the line Projects under development to Shopping malls and office towers in operation. ³ In 2014, the BarraShopping Expansion VII project was completed, and the assets were transferred from the line Projects under development to Shopping-malls and office towers in operation. Following the CPC 19 (R2) - Joint business pronouncement, issued by the Accounting Standards Committee (CPC), the 37.5% ownership interest in Shopping Santa Úrsula and 50.0% in Parque Shopping Maceió project through the joint controlled investees were not considered in the fair value calculation. Fair Value 17.5 B 15.0 B 12.5 B 10.0 B 7.5 B 5.0 B 2.5 B Future projects (not disclosed) Properties under development (disclosed) Properties in operation Sep B Sep-15 Evolution of Fair Value¹ (R$) Fair Value¹ per share (R$) Fair Value - properties in operation NOI - properties in operation Owned GLA - properties in operation B 10.0 B 59% 15.9 B Sep-15 Market Value Enterprise Value (EV) Fair Value 11

12 Growth of Fair Value¹, NOI and owned GLA (Base 100: 2010) Market Cap² vs. Enterprise Value³ vs. Fair Value¹ - Fair Value Enterprise Value (EV) Discount of Enterprise Value (EV) / Fair Valu 12.3 B 6.4 B 13.0 B 7.3 B 14.7 B 14.6 B 12.3 B 11.3 B 16.0 B 15.9 B 10.9 B 10.0 B 93.0% 78.6% 19.6% 29.2% 46.9% 59.4% Sep-15 Enterprise Value³ and Fair Value¹ (R$) ¹ Calculated according to CPC 28 ² Based on stock price on, of R$42.40 ³ The sum of Market Cap and Net Debt 3. Operational Indicators 3.1 Tenant Sales Against the wind Multiplan s portfolio was able to maintain resilient productivity metrics in the third quarter, despite the country s economic slowdown, and posted a 2.5% tenant sales growth. Sales reached R$3.0 billion in 3Q15 and represented another 3Q sales/m² record of R$1,445/m² per month. In 9M15, sales grew 4.7% over 9M14, reaching R$9.1 billion, while in the last five years, sales were up a total of 80.6%. Evolution of tenants sales (R$) Finally, in the last 12 months, Multiplan s malls recorded sales of R$26,144/m². Shopping Vila Olímpia posts 21.0% growth in 3Q sales In 3Q15, Shopping Vila Olímpia once again posted strong sales growth following recent tenant mix improvements. The changes targeted the mall s third and fourth floors, now offering more entertainment, fashion and restaurant options. The mall s sales grew 21.0% in 3Q15 and 20.1% in 9M15. 12

13 MorumbiShopping s sales increased 4.4% in the quarter, on top of 15.0% growth in 3Q14, which was then boosted by tenant mix changes, leading the shopping center to achieve the highest sales/m² ratio in the Company s portfolio. Parque Shopping Maceió continues to show a robust sales consolidation, reaching 39.1% growth in the first nine months of the year. In 3Q15, the mall grew sales by 22.6%. ParkShoppingCampoGrande and JundiaíShopping also recorded solid sales growth in the quarter, of 9.7% and 7.1% respectively. VillageMall undergoes a tenant mix improvement, which includes the arrival of new international and local brands to the shopping center. As the new stores are being prepared, the mall sees a temporary decrease in sales, of 10.2%, compared to strong 3Q14 growth (66.6%) over the previous year. Shopping Center Sales (100%) Opening 3Q15 3Q14 Chg.% 9M15 9M14 Chg.% BH Shopping M M 0.6% M M 1.4% RibeirãoShopping M M 3.4% M M 0.4% BarraShopping M M 1.2% 1,315.3 M 1,252.2 M 5.0% MorumbiShopping M M 4.4% 1,138.0 M 1,082.5 M 5.1% ParkShopping M M 5.2% M M 6.5% DiamondMall M M 1.6% M M 0.7% New York City Center M 48.8 M 7.4% M M 7.2% Shopping Anália Franco M M 1.9% M M 3.4% ParkShoppingBarigüi M M 1.8% M M 3.0% Pátio Savassi 2007 ¹ 91.9 M 87.8 M 4.7% M M 5.9% Shopping Santa Úrsula 2008 ² 39.8 M 41.2 M 3.6% M M 1.7% BarraShoppingSul M M 0.2% M M 3.9% Shopping Vila Olímpia M 79.9 M 21.0% M M 20.1% ParkShoppingSãoCaetano M M 4.8% M M 4.1% JundiaíShopping M 91.4 M 7.1% M M 7.8% ParkShoppingCampoGrande M 90.4 M 9.7% M M 8.9% VillageMall M M 10.2% M M 1.7% Parque Shopping Maceió M 65.9 M 22.6% M M 39.1% Total 3,038.4 M 2,963.7 M 2.5% 9,110.3 M 8,697.6 M 4.7% ¹ Pátio Savassi opened in 2004 and was acquired by Multiplan in June Shopping Santa Úrsula opened in 1999 and was acquired by Multiplan in April Same Area Sales grows 2.7% in 3Q15 Same Area Sales (SAS) and Same Store Sales (SSS) in the third quarter increased 2.7% and 0.6% over 3Q14, respectively, despite worsening overall economic conditions. The chart on the right shows the accumulated effect of growing on top of a strong base. In the last two years, the SAS rose 11.6% in the 9M period, reaching a monthly rate of R$1,494/m², and a CAGR of 5.7% in the last two years. Evolution of SAS - Base: 9M13 (R$/m²/month) 13

14 For yet another quarter, SAS exceeded SSS growth, by 210 b.p., the second highest difference in the last 20 quarters, again demonstrating the Company s ability to improve its tenant mix and positively exploit current market momentum. The Company has taken some opportunities to replace underperforming stores for prominent tenants who were requesting space in Multiplan s malls. During 3Q15, 12,500.m² of GLA was composed of stores leased but not yet operating. 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% 6.7% 5.7% 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% 4.3% 1.2% 0.6% 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 SAS and SSS Evolution (year/year) SSS for the Services segment up 6.3% Services and Food Court/& Gourmet Area continued to be the most resilient segments in the Company s mall space in 3Q15, with increases of 6.3% and 4.1% respectively. The most impacted segment was Home & Office, which recorded a 6.5% decline in the quarter. For analysis purposes only, if the Home & Office segment were excluded, the SAS and SSS would have grown 3.6% and 1.5%, respectively. Same Store Sales 3Q15 x 3Q14 Anchor Satellite Total Food Court & Gourmet Area - 4.1% 4.1% Apparel 3.5% 1.9% 0.6% Home & Office 9.7% 4.3% 6.5% Miscellaneous 1.1% 3.5% 2.2% Services 10.1% 5.3% 6.3% Total 0.3% 0.6% 0.6% 3.2 Operational Indicators Same Store Sales growth breakdown by segment Occupancy rate still high at 98.1% At quarter s end, the shopping center average occupancy rate stood at 98.1%, sustaining its high percentage. At the end of the third quarter, 11 out of 18 malls presented an occupancy rate over 98%, with one mall fully occupied. The high occupancy rate is an indication of the attractiveness of Multiplan s portfolio. 98.4% 98.1% 98.5% 98.1% 98.8% 98.1% 97.9% 98.1% 98.6% 98.4% 98.1% 98.0% 97.2% 97.8% 98.1% 97.5% 97.6% 98.6% 98.5% 98.4% 99.0% 98.6% 98.4% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Evolution of shopping center occupancy rate: 1Q10-3Q15 14

15 Occupancy cost slightly below 3Q14 At the end of 3Q15, the occupancy cost was 13.0%, 10 b.p. lower than the same period of the previous year. This decline is the result of an effort to reduce common condominium expenses. Rent as % of sales has been increasing, while other as % of sales is declining, demonstrating even higher efficiency while controlling condominium expenses. Delinquency rate was 2.4% in 3Q % 13.1% 13.1% 13.0% 13.1% 13.0% 5.4% 5.3% 5.4% 5.6% 5.6% 5.3% 7.3% 7.8% 7.6% 7.4% 7.5% 7.7% 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 Rent as % of Sales Other as % of Sales Occupancy cost breakdown 3Q10-3Q15 On the one hand, the Multiplan shopping centers delinquency rate (rental payments more than 25 days overdue) was 2.4% in 3Q15, 70 b.p. higher compared to 3Q14, impacted by the challenging environment but still below the 2.7% historical average since the IPO. On the other hand, rent loss was 0.4% in 3Q15, lower than the same period in the previous year. 3.2% 1.1% Delinquency Rate Rent Loss 2.4% 2.4% 0.9% 1.7% 1.3% 1.5% 0.7% 0.8% 0.4% 0.1% 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 Historical delinquency rate and rent losses: 3Q10-3Q15 4. Gross Revenue Gross revenue reaches R$291.7 million in 3Q15, driven by rental revenue Gross revenue totaled R$291.7 million in 3Q15, a decrease of 5.1% compared to 3Q14, with rental revenue the largest component at R$199.8 million. In 9M15, gross revenue was R$17.8 million lower when compared to 9M14, with rental revenue representing 68.3% of this total (R$595.1 million). Excluding real estate for sale revenues, gross revenue would be 3.7% higher, going from R$276.9 million in 3Q14 to R$287.2 million in 3Q15. Real estate for sale revenue decreased 85.4%, while rental revenue was up by 8.3%. No new launches of projects for sale and the delivery of two towers, which accounted for revenues of R$30.4 million during 3Q14, impacted the gross revenue year-over-year comparison. 15

16 Gross revenue growth - 3Q15 Gross revenue breakdown - 3Q15 3Q15 Gross revenue growth breakdown (Y/Y) (R$) 9M15 Gross revenue growth breakdown (Y/Y) (R$) 16

17 5. Property Ownership Results 5.1 Rental Revenue Rental revenue totals R$199.8 million in 3Q15, up 8.3% Rental revenue grew 8.3% in 3Q15 when compared to 3Q14, reaching R$199.8 million. Rental revenue is composed of base rent, merchandising and overage rent, which in 3Q15 represented 89.7%, 6.9%, and 3.4% of total rent, respectively. Merchandising revenue increased 11.6%, boosted by media (advertising and brand exposure) due to new contracts signed in throughout the quarter. The portfolio s average monthly rent was R$108/m² in the quarter, reflecting Multiplan s malls high productivity, which continued to increase on top of a strong rent base. Rental Revenue breakdown - 3Q15 Additional data on shopping center results can be downloaded from the Fundamentals Spreadsheet on Multiplan s investor relations website: ( 3Q15 Rental revenue growth breakdown (Y/Y) (R$) Rental Revenue (R$) Opening 3Q15 3Q14 Chg.% 9M15 9M14 Chg.% BH Shopping M 17.4 M 7.9% 56.4 M 52.5 M 7.5% RibeirãoShopping M 11.3 M 0.1% 34.0 M 33.4 M 1.9% BarraShopping M 22.4 M 7.7% 71.6 M 64.1 M 11.7% MorumbiShopping M 22.8 M 6.4% 73.6 M 70.1 M 4.9% ParkShopping M 11.5 M 9.8% 37.5 M 33.5 M 11.8% DiamondMall M 9.6 M 1.9% 29.3 M 28.1 M 4.3% New York City Center M 1.8 M 1.5% 5.5 M 5.1 M 6.6% Shopping Anália Franco M 5.9 M 5.2% 18.5 M 17.6 M 5.3% ParkShoppingBarigüi M 11.2 M 4.7% 35.7 M 33.3 M 7.0% Pátio Savassi 2007 ¹ 6.6 M 6.4 M 4.1% 19.7 M 18.2 M 8.3% Shopping Santa Úrsula 2008 ² 1.3 M 1.4 M 7.7% 3.8 M 4.0 M 5.6% BarraShoppingSul M 12.1 M 15.5% 39.9 M 35.7 M 11.5% Shopping Vila Olímpia M 4.4 M 2.6% 13.5 M 13.5 M 0.1% ParkShoppingSãoCaetano M 9.6 M 0.6% 29.4 M 29.0 M 1.4% JundiaíShopping M 6.8 M 6.8% 22.6 M 20.1 M 12.6% ParkShoppingCampoGrande M 7.1 M 8.8% 23.6 M 21.9 M 7.4% 17

18 VillageMall M 9.1 M 16.2% 24.6 M 24.0 M 2.2% Parque Shopping Maceió M 2.7 M 14.2% 8.8 M 7.4 M 20.1% Morumbi Corporate M 11.1 M 55.3% 46.8 M 26.8 M 74.1% ParkShopping Corporate M - n.a. 0.4 M - n.a. Total M M 8.3% M M 10.5% ¹ Pátio Savassi opened in 2004 and was acquired by Multiplan in June, Shopping Santa Úrsula opened in 1999 and was acquired by Multiplan in April, 2008 In 3Q15, the main shopping center highlights were BarraShoppingSul, Parque Shopping Maceió, ParkShopping, ParkShoppingCampoGrande and BarraShopping. These malls presented a combined rental revenue growth of 10.3% in the quarter. Morumbi Corporate: in 3Q15 rental revenue grew 55.3% over 3Q14 Morumbi Corporate, the two-tower office complex located across from MorumbiShopping, contributed with R$17.2 million in total rental revenue in 3Q15, an increase of 55.3% compared to 3Q14 and 14.9% compared to 2Q15. As of September 2015, 90% of the tower area was leased. 2014: 40.2 M 12M: 60.2 M 10.1 M 11.1 M 13.4 M 14.5 M 15.0 M 17.2 M 5.6 M 1.3 M 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Morumbi Corporate rental revenue evolution (R$) SSR grows 6.8%, implying a real increase of 2.4% in 3Q15 Same Store Rent (SSR) reported a monthly average of R$104/m² in 3Q15, an increase of 6.8% compared to 3Q14. The result is even more meaningful given the 8.8% SSR increase in 3Q14, thus building a strong comparison base. The IGP-DI adjustment effect was 4.4% in the quarter, leading to a real growth of 2.4%, with both the SSR and Real SSR indicators remaining almost unchanged over 2Q15. In 9M15, Same Store Rent (SSR) increased 8.0% compared to 9M14 and, excluding the IGP-DI effect of 4.7%, the real growth stood at 3.3%. 18

19 6.6% 14.1% 16.0% 14.5% 12.0% 11.9% 10.3% 5.8% 4.9% 4.8% 10.4% 11.4% 11.4% 7.7% 2.8% 3.9% 7.7% 8.6% 10.1% 3.9% 1.8% 2.6% 4.3% 8.0% 0.6% 3.5% 8.0% 8.8% 9.2% 9.5% 6.8% 7.0% 6.8% 1.2% 4.1% 0.9% 2.7% 3.4% 4.1% 2.4% 2.4% 0.6% 4.0% 7.3% 8.8% 9.6% 9.3% 6.0% 7.7% 6.3% 5.7% 5.9% 6.8% 7.4% 7.6% 6.7% 5.9% 5.8% 5.9% 5.6% 5.2% 4.5% 4.4% 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 IGD-DI Adjustment Effect Real SSR Same Store Rent (SSR) breakdown - Nominal and real growth 7.7% 6.0% 2.8% 4.9% 5.8% 4.8% 3.9% 3.9% 1.8% 2.6% 4.3% 0.6% 3.5% 1.2% 0.9% 4.1% 2.7% 3.4% 4.1% 2.4% 2.4% 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Same Store Rent (SSR) real growth 5.2 Parking Revenue Parking revenue reaches R$41.4 million, an increase of 9.3% in 3Q15 Parking revenue reaches R$41.4 million and was higher by 9.3% in 3Q15 over 3Q14. This evolution was boosted by higher traffic in new malls, longer consumer stays and adjustment in parking fees. 5.3 Shopping Center and Office Tower Expenses Parking revenue evolution (R$) Property expenses (malls + offices for lease) drop 3.3% in 3Q15 Shopping center expenses totaled R$28.4 million in 3Q15, 5.5% higher than in 3Q14, mainly due to a slight drop in the occupancy rate and a provision increase, in line with the higher delinquency rate. As a percentage of shopping center revenues, mall expenses grew from 12.0% in 3Q14, to 12.7% in 3Q15. Shopping center expenses evolution (R$) and as % of shopping center revenues¹ ¹(mall rental and parking revenues) 19

20 As expected, office towers expenses drop in 3Q15 Office tower expenses totaled R$1.3 million in 3Q15, decreasing R$2.5 million when compared to 3Q14. Morumbi Corporate currently has 90% of its GLA leased, and as the project occupancy rate improves, the operating margin is expected to increase. Office towers expenses evolution (R$) 5.4 Net Operating Income - NOI NOI + Key Money increases 9.8% in 9M15, with a margin of 89.4% Multiplan recorded a Net Operating Income (NOI) + Key Money (KM) of R$225.9 million in 3Q15, 5.0% higher than in 3Q14. The NOI + Key Money margin improved 87 b.p. to 88.4%, when compared to 3Q14 of 87.5%. In 9M15, NOI + Key Money increased 9.8% compared to 9M14, to R$686.2 million with a margin of 89.4%, an increase of 161 b.p. compared to 9M14. NOI Calculation (R$) 3Q15 3Q14 Chg.% 9M15 9M14 Chg.% Rental revenue M M 8.3% M M 10.5% Straight line effect 7.5 M 13.7 M 45.1% 24.8 M 31.7 M 22.0% Parking revenue 41.4 M 37.9 M 9.3% M M 13.5% Operational revenue M M 5.4% M M 9.5% Shopping center expenses (28.4 M) (26.9 M) 5.5% (73.4 M) (77.3 M) 5.0% Office for lease expenses (1.3 M) (3.8 M) 66.4% (8.0 M) (9.7 M) 17.2% NOI M M 6.6% M M 11.8% NOI margin 88.1% 87.0% 106 b.p 89.1% 87.2% 185 b.p Key Money 6.9 M 9.8 M 29.7% 20.6 M 29.5 M 30.1% Operational revenue + Key Money M M 4.0% M M 7.8% NOI + Key Money M M 5.0% M M 9.8% NOI + Key Money margin 88.4% 87.5% 87 b.p 89.4% 87.8% 161 b.p In the last 12 months (through September 2015), NOI + Key Money increased to R$944.4 million, 14.0% higher than in the previous period. The NOI + Key Money per share reached R$1.20 in 3Q15, implying a five-year CAGR of 13.7%. In the 12-month period ending in September 2015, NOI + Key Money per share broke the R$5.00 mark, with a five-year CAGR of 14.1%. 20

21 NOI + Key Money per share (3Q) NOI + Key Money per share (LTM) CAGR: 14.1% CAGR: 13.7% Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 NOI + Key Money per share* evolution (R$) *Shares outstanding adjusted for shares held in treasury NOI + Key Money (R$) and margin 6. Shopping Center Management Results 6.1 Services Revenue NOI + Key Money (R$) Services revenue totals R$29.3 million in 3Q15 Services revenue, mainly composed of portfolio management, brokerage and transfer fees, totaled R$29.3 million in 3Q15. Management fees increased due to higher rental revenues, offset by lower revenues from brokerage and transfer fees. In 3Q15, services revenue represented 89.8% of G&A expenses. Quarterly services revenue evolution (R$) 21

22 6.2 General and Administrative Expenses (Headquarters) Recurring G&A expenses increased below inflation In 3Q15, General and Administrative (G&A) expenses totaled R$32.6 million, 10.5% higher than the same period of the previous year, mainly due to increased labor costs (collective wage agreement) and labor contingencies. If the nonrecurring labor contingencies items were excluded, the recurring G&A growth would have been 4.7% in the quarter. G&A expenses as a percentage of net revenue for the third quarter was 12.4%. G&A non-recurring items in 3Q15 (R$) Quarterly G&A evolution (R$) 7. Shopping Center Development Results 7.1 Key Money Revenue Key money revenue totals R$20.6 million in 9M15 Key money revenue recognition in 3Q15 decreased 29.7% to R$6.9 million, impacted by Shopping Vila Olímpia, which completed its first five years in operation (the accounting accrual period for most mall key money contracts), and partially compensated by the key money from BarraShopping Expansion VII, delivered in the end of 2Q14. Key Money Revenue (R$) 3Q15 3Q14 Chg. % 9M15 9M14 Chg. % Operational (Recurring) 2.3 M 1.0 M 130.0% 4.4 M 2.2 M 100.2% Projects opened in the last 5 years (Non-recurring) 4.6 M 8.8 M 47.7% 16.2 M 27.3 M 33.7% Key Money Revenue 6.9 M 9.8 M 29.7% 20.6 M 29.5 M 30.1% 22

23 7.2 New Projects for Lease Expenses New projects expenses impacted by greenfield launch The pre-operational expenses related to (i) the launch of ParkShoppingCanoas in June 2015, and (ii) property taxes (IPTU) from land for future developments, were mainly responsible for the new projects for lease expenses of R$4.7 million. These expenses are incurred mostly in the planning, launching and opening phases of projects, and represent an important tool to implement the Company s strategy of attracting the best tenants and creating the ideal mix for each mall. Quarterly New Projects for Lease Expenses (R$) 8. Real Estate for Sale Results The new towers of BarraShoppingSul Complex, Résidence du Lac and Diamond Tower were successfully concluded and, in 3Q15, were responsible for real estate for sale revenue of R$4.5 million, reducing its contribution by 85.4% when compared to 3Q14. Multiplan accrued cost of properties sold of R$4.3 million in 3Q15, driven by a slight cost increase, which was almost fully accrued given that the PoC (percentage of completion method) was nearly ended. After the project s delivery, the accumulated gross margin was 34.4% and the Company expects to reach a PSV average of R$11.275/m². New projects for sale expenses, composed mainly of brokerage fees and property taxes (IPTU) for the land bank, decreased 38.0%, totaling R$1.2 million in 3Q15. Real Estate for Sale Revenues (R$) 23

24 9. Financial Results 9.1 EBITDA Consolidated EBITDA margin increases 238 b.p. in 3Q15, the highest margin for a third quarter since 2010 The quarter s Consolidated EBITDA presented a small decline (-2.2%) compared to 3Q14, mainly due to (i) a decrease in net revenue (-5.6%) and (ii) higher G&A expenses (+10.5%). As detailed in topic 4, the drop in net revenues resulted from the 85.4% decrease in real estate for sale revenue, impacted by the end of the contribution coming from the delivered towers at BarraShoppingSul, as well as by the strategy of not launching new projects for sale in As a consequence of this strategy, the cost of properties sold also declined (-75.8%), leading to a 69.4% EBITDA margin, the highest for a third quarter since In 9M15, the Consolidated EBITDA was off 1.4%, due to 1Q14 non-recurring revenues (R$21.4 million of real estate project legal settlement and air rights sales). The Consolidated EBITDA margin increased 96 b.p. to 71.5%, up from 70.5%. Consolidated EBITDA (R$) 3Q15 3Q14 Chg. % 9M15 9M14 Chg. % Net Revenue M M 5.6% M M 2.7% Headquarters expenses (32.6 M) (29.5 M) 10.5% (91.1 M) (85.6 M) 6.5% Stock-option expenses (2.9 M) (4.0 M) 29.3% (9.8 M) (10.7 M) 8.0% Shopping centers expenses (28.4 M) (26.9 M) 5.5% (73.4 M) (77.3 M) 5.0% Office towers for lease expenses (1.3 M) (3.8 M) 66.4% (8.0 M) (9.7 M) 17.2% New projects for lease expenses (4.7 M) (2.4 M) 100.2% (11.9 M) (11.2 M) 6.3% New projects for sale expenses (1.2 M) (2.0 M) 38.0% (3.2 M) (8.0 M) 60.2% Cost of properties sold (4.3 M) (17.9 M) 75.8% (16.9 M) (51.3 M) 67.1% Equity pickup 0.0 M (0.7 M) n.a. 0.0 M 10.7 M 99.8% Other operating income (expenses) (5.0 M) (4.7 M) 7.5% (9.6 M) 5.1 M n.a. Consolidated EBITDA M M 2.2% M M 1.4% Consolidated EBITDA Margin 69.4% 67.0% 238 b.p. 71.5% 70.5% 96 b.p. In the last 12 months Consolidated EBITDA reached R$785.7 million, an increase of 10.9% when compared to September 2014 (LTM). When compared to the same period of 2010, the Consolidated EBITDA was up 135.5%, implying a five-year CAGR of 18.7%. 24

25 EBITDA Evolution (R$) Property EBITDA of R$189.0 million in 3Q15 with a margin of 73.1% In order to present the Company s core business (leasing activities) results, since 2Q15 Multiplan introduced the Property EBITDA. This metric excludes real estate for sale revenues and expenses related to future developments. Compared to 3Q14, Property EBITDA grew 2.2%, driven by an increase in Property Gross Revenue (+3.7%), highlighted by rental (+8.3%) and parking (+9.3%) revenues. In 9M15, Property EBITDA totaled R$580.1 million, an increase of 3.3% when compared to 9M14, while the Property EBITDA margin stood at 75.3%. Property EBITDA (R$) 25

26 Property EBITDA (R$) 3Q15 3Q14 Chg. % 9M15 9M14 Chg. % Property Gross Revenue ¹ M M 3.7% M M 6.2% Taxes and contributions on sales and services ² (28.6 M) (26.2 M) 8.9% (84.1 M) (73.8 M) 13.9% Property Net Revenue M M 3.2% M M 5.4% Headquarters expenses ² (32.1 M) (26.6 M) 20.8% (89.3 M) (77.5 M) 15.3% Stock-option expenses ² (2.8 M) (3.6 M) 22.7% (9.6 M) (9.7 M) 0.4% Shopping centers expenses (28.4 M) (26.9 M) 5.5% (73.4 M) (77.3 M) 5.0% Office towers expenses (1.3 M) (3.8 M) 66.4% (8.0 M) (9.7 M) 17.2% Other operating income (expenses) (5.0 M) (4.7 M) 7.5% (9.6 M) 5.1 M n.a. Property EBITDA ³ M M 2.2% M M 3.3% Property EBITDA Margin 73.1% 73.8% 75 b.p. 75.3% 76.9% 154 b.p. (1) Property Gross Revenue: does not consider real estate for sale. (2) Headquarters expenses, stock options and taxes: proportional to the property revenues as a percentage of gross revenue. (3) Property EBITDA: does not consider Real Estate for sale activities (revenues, taxes, costs and expenses) and expenses related to future development. In the last 12 months ended in September 2015, the Property EBITDA margin increased 220 b.p. to 75.4%, up from 73.2% in the same period of the previous year, and was followed by other operating margins, as indicated in the chart below. Multiplan s Net Income, detailed in section 9.3, recorded a 350 b.p. margin increase in the period, to 31.5%. 88.4% 90.8% 75.6% 79.6% 87.1% 86.8% 89.0% 76.0% 73.2% 75.4% 59.0% 53.4% 52.2% 39.7% 40.2% 37.4% 44.4% 46.8% 28.0% 31.5% Sep-11 (LTM) Sep-12 (LTM) Sep-13 (LTM) Sep-14 (LTM) Sep-15 (LTM) NOI + Key Money Margin Property EBITDA Margin Net Income Margin FFO Margin Evolution of Margins (LTM) 9.2 Financial Results, Debt and Cash Leverage recorded a slight decrease to 2.42x net debt-to-ebitda Multiplan ended the 3Q15 with a net debt of R$1,901.1 million, compared to R$1,928.9 million in 2Q15, mainly impacted by a R$41.4 million decrease (-2.5%) in loans and financing (current and non-current liabilities). The current debt figure represents a net debt-to-ebitda (last 12 months) ratio of 2.42x, and the net debt was equivalent to 12.0% of the Investment Properties fair value. 26

27 Financial Position Breakdown (R$) June 30, 2015 Chg. % Current Liabilities M M 38.9% Loans and financing M M 46.6% Debentures 25.9 M 10.9 M 138.2% Obligations from acquisition of goods 51.4 M 56.7 M 9.4% Non Current Liabilities 1,773.6 M 1,923.2 M 7.8% Loans and financing 1,326.8 M 1,467.8 M 9.6% Debentures M M 0.0% Obligations from acquisition of goods 48.6 M 57.2 M 15.0% Gross Debt 2,164.5 M 2,204.7 M 1.8% Cash and Cash Equivalents M M 4.5% Net Debt 1,901.1 M 1,928.9 M 1.4% EBITDA LTM M M 0.5% Fair Value of Investment Properties M 16,349.8 M 2.9% In 3Q15, the financial result generated a loss of R$51.5 million, representing growth of 21.6% over to 3Q14. Cash and Cash Equivalents were impacted mainly by the cash outflows of (i) CAPEX of R$53.6 million in the period, (ii) amortization of R$53.0 million in short-term debt and (iii) R$14.7 million in obligations from acquisition of goods. In contrast, cash outflows were offset by (iv) cash generation of existing operations, considering an FFO of R$102.3 million in 3Q15. Multiplan s debt amortization schedule on (R$) The net debt-to-ebitda (LTM) ratio remained stable, presenting a small decrease from 2.44x to 2.42x, while the EBITDA-to-Financial Expenses (LTM) declined from 3.57x to 3.35x, mainly due to an increase of 5.8% in financial expenses, impacted by higher interest rates. Financial Position Analysis¹ Sep. 30, 2015 Jun. 30, 2015 Net Debt/EBITDA (LTM) 2.42x 2.44x Gross Debt/EBITDA (LTM) 2.75x 2.79x EBITDA/Financial Expenses (LTM) 3.35x 3.57x Net Debt/Fair Value 12.0% 11.8% Net Debt/Equity 45.5% 46.4% Net Debt/Market Cap 23.6% 21.6% Weighted Average Maturity (Months) ¹ EBITDA and Financial Expenses are the sum of the last 12 months 27

28 Cost of funding 144 b.p. below Selic In the third quarter, the basic interest rate increased 50 b.p. to 14.25% p.a., while Multiplan s weighted average cost-of-debt increased 52 b.p., ending the period at 12.81% p.a., up from 12.29% p.a. on June 30, The current spread between the Company s weighted average cost of funding and the Selic basic interest rate was 144 b.p. in 3Q % 9.48% 9.08% 8.95% 9.20% 9.34% 9.87% 10.41% 11.00% 11.00% 11.75% 12.75% 13.75% 14.25% 10.50% 10.54% 10.96% 11.53% 12.29% 12.81% 10.75% 9.00% 10.00% 8.50% 7.50% 7.25% 7.25% 8.00% Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Multiplan Cost of Funding (gross debt) Selic Rate Weighted average cost of funding (% p.a.) Multiplan s indebtedness continues to show a wide selection of indices, with debt linked to the TR and the CDI indexes representing the largest share of the total debt outstanding. All of Multiplan s debt is in local currency (R$), leaving no exposure to exchange rate fluctuations. Indebtedness interest indices on Index Performance Average Interest Rate ¹ Cost of Funding Gross Debt (R$) TR ² 1.50% 8.88% 10.50% M CDI 14.25% 0.98% 15.23% M TJLP 6.50% 3.25% 9.80% M IGP-M ² 8.35% 1.19% 9.54% 23.7 M IPCA ² 9.49% 7.62% 17.11% 21.4 M Others 0.00% 8.03% 8.03% 43.1 M Total 8.21% 4.55% 12.81% 2,164.5 M ¹ Weighted average annual interest rate. ² Index performance for the last 12 months. Multiplan Debt Indices on Recent event: In October 2015, an existing R$100 million financing agreement was renegotiated for a twoyear term extension. 28

29 9.3 Net Income and Funds From Operations (FFO) LTM Net Income reaches R$348.7 million, up 15.8% Net Income reached R$58.6 million in 3Q15, 14.1% lower than 3Q14, mainly due to (i) a decrease in real estate for sale revenue (-85.4%), as mentioned in topic 9.1 and (ii) a 227 b.p. increase in cost of funding, to 12.8% in 3Q15, up from 10.5% in 3Q14. In 9M15, Net Income was R$224.5 million, a 7.9% decrease compared to 9M14, impacted by non-recurring items occurred in 1Q14 (R$21.4 million). If non-recurring items were excluded, Net Income would present a 0.9% growth and the margin would increase 103 b.p., from 27.5% in 9M14 to 28.6% in 9M15. Net Income (R$) In the last 12 months, Net Income reached R$348.7 million, an increase of 15.8% when compared to the previous period. Net Income (R$) ¹ Impact on taxes not considered FFO & Net Income Calculation 3Q15 3Q14 Chg. % 9M15 9M14 Chg. % Net Revenue M M 5.6% M M 2.7% Operating expenses (80.5 M) (91.9 M) 12.4% (223.9 M) (238.0 M) 5.9% Financial results (51.5 M) (42.4 M) 21.6% (139.5 M) (121.7 M) 14.6% Depreciation and amortization (39.6 M) (42.0 M) 5.6% (118.1 M) (121.3 M) 2.6% Income tax and social contribution (28.4 M) (26.7 M) 6.3% (67.1 M) (58.6 M) 14.6% Minority interest 0.1 M 0.0 M 403.3% 0.2 M (0.0 M) n.a. Adjusted Net Income 62.7 M 75.2 M 16.6% M M 11.5% Deferred income and social contribution (4.1 M) (7.0 M) 40.8% (12.8 M) (24.4 M) 47.4% Net income 58.6 M 68.2 M 14.1% M M 7.9% Depreciation and amortization 39.6 M 42.0 M 5.6% M M 2.6% Deferred income and social contribution 4.1 M 7.0 M 40.8% 12.8 M 24.4 M 47.4% FFO M M 12.7% M M 8.8% LTM FFO increases 8.4% despite higher interest rates Funds From Operations (FFO) reached R$102.3 million in 3Q15, 12.7% lower than 3Q14, following the trend of Net Income, described above. In the last 12 months FFO increased 8.4%, reaching R$518.7 million, resulting in a five-year CAGR of 8.0%, despite the rise of interest rates in Brazil and that affected this quarter s performance. FFO per share (LTM) reached R$2.76 with a five-year CAGR of 6.9%. 29

30 10. Project Development FFO evolution (R$) FFO (R$) per share evolution 1 Shares outstanding at the end of each period, adjusted for shares held in treasury Multiplan invests R$53.6 million during 3Q15 Multiplan s total CAPEX was R$53.6 million during 3Q15. Mall development CAPEX totaled R$35.1 million, accounting for 65% of this quarter s investments and included the development of greenfields (R$20.9 M) and mall expansion projects (R$14.2 M). Greenfield investments were driven mainly by the development of ParkShoppingCanoas and new projects under development. Mall expansions included the final stage of the BarraShopping Medical Center Expansion and a small expansion in Pátio Savassi. Renovation and IT investments totaled R$13.9 million and included an expansion of the deck parking in ParkShoppingBarigüi and IT projects. Nine-month CAPEX was R$227.1 million. Investment (R$) 3Q15 9M15 Greenfields 20.9 M 41.0 M Mall Expansions 14.2 M 61.7 M Office Towers 0.9 M 21.5 M Renovation, IT & Others 13.9 M 36.0 M Land Acquisition 3.7 M 67.0 M Investment 53.6 M M 10.1 Shopping Center Expansions Three expansions to open in the next quarter The demand for new space has led Multiplan to develop small expansions totaling 8,334 m² of GLA during the quarter. Recent events: In October 2015, as a result of these new areas, international fashion stores have been added in Pátio Savassi (expansion I) and ParkShoppingBarigüi. The company focused on the demand of strategic tenants, which should lead to an increase in visitor traffic in its malls. By the end of the year, a Medical Center expansion will be delivered in BarraShopping, adding 3,515m² to the current area. The project is already 97.0% leased. New expansions ¹ Opening Date GLA Pátio Savassi (I) Oct-15 1,852 m² ParkShoppingBarigüi Oct m² BarraShopping Dec-15 3,515 m² Pátio Savassi (II) Nov-17 2,227 m² Subtotal 8,334 m² Future Expansions 161,750 m² Total 170,084 m² 30

31 Future expansion projects in 10 shopping centers total 161,750 m² The Company is currently evaluating expansion projects in 10 shopping centers that total 161,750 m² of GLA. Besides these projects, the Company will continue seeking profitable expansions and opportunities to meet consumers demand. Opening of ParkShoppingBarigui Expansion (Oct-15) ¹ 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, which may be changed or cancelled without prior notice Greenfield ParkShoppingCanoas with 68% of GLA leased In June 2015 Multiplan officially launched ParkShoppingCanoas, located in the state of Rio Grande do Sul, in the city of Canoas. ParkShoppingCanoas, Multiplan s 19 th shopping center, will have 48,000 m² of GLA and is expected to open in April Multiplan will have an 80% ownership interest in the shopping center s income, while the company will invest 94.7% of the project s development costs (CAPEX), which should represent R$359.3 million in the Company s stake. Third year estimated NOI (Net Operating Income) is R$36.0 million. The third year NOI yield, considering the net investment, is 10.8%. Following the mixed-use concept developed by Multiplan in several of its complexes, which combines shopping centers with real estate projects, ParkShoppingCanoas has already been designed with an expansion of 12,000 m² of GLA and three towers integrated with the shopping center, with a total private area of 22,500 m². ParkShoppingCanoas project illustration Artist s rendering for illustration purposes only - Project subject to changes without previous notice 31

32 10.3 Mixed-use: Office and Residential Towers for Sale Towers at BarraShoppingSul: successfully delivered Résidence du Lac and Diamond Tower, a 23,760 m² project in Porto Alegre were delivered following the issuance of occupancy permits and are now ready to be occupied. Following the mixed-use concept developed by Multiplan, these two towers are integrated with BarraShoppingSul and Cristal Tower office building (as the picture on the right). The combined potential sales value of these two towers is R$267.9 million. Complex: Cristal Tower, Diamond Tower, Résidence du Lac and BarraShoppingSul Towers for Sale Project Location Type Opening Area %Mult. Potential Sales Value Average price/m² Diamond Tower BarraShoppingSul Condo Offices Aug-15 13,800 m² 100.0% M 10,501 Résidence du Lac BarraShoppingSul Residential Aug-15 9,960 m² 100.0% M 12,348 Total 23,760 m² 100.0% M 11,275 32

33 10.4 Future Growth and Land Bank Land bank of 821 thousand m² for future mixed-use projects Multiplan currently holds 820,519 m² of land for future developments. All sites shown on the list below are integrated with the Company s shopping centers and should be used to foster the development of mixeduse projects, primarily for sale. Based on current internal project assessments, the Company estimated a total private area¹ for sale of over one million m². Shopping Attached to Land Location Land Area Potential Area for Sale¹ Project Type % Multiplan BarraShoppingSul 159,587 m² 304,515 m² Hotel, Apart-Hotel, Office, Residential 100% JundiaíShopping 4,500 m² 11,616 m² Office 100% ParkShoppingBarigüi 28,214 m² 43,376 m² Apart-Hotel, Office 94% ParkShoppingCampoGrande 317,755 m² 92,774 m² Office, Residential 90% ParkShoppingCanoas 18,721 m² 22,457 m² Hotel, Apart-Hotel, Office n.a. ParkShoppingSãoCaetano 36,948 m² 138,000 m² Office 100% Parque Shopping Maceió 86,699 m² 182,665 m² Office, Residential 50% RibeirãoShopping 102,295 m² 138,749 m² Hotel, Apart-Hotel, Office, Residential 100% Shopping AnáliaFranco 29,800 m² 89,600 m² Residential 36% VillageMall 36,000 m² 34,038 m² Office 100% Total 820,519 m² 1,057,790 m² 83% Village Corporate project illustration Artist s rendering for illustrative purposes only - Project subject to changes without previous notice ¹This 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. 33

34 11. MULT3 Indicators & Stock Market Average daily traded volume of R$40.7 million in 9M15 Multiplan s stock (MULT3 at BM&FBOVESPA; MULT3 BZ on Bloomberg) was quoted at R$42.40/share at the end of 3Q15, 15.4% lower than at the end of 3Q14. Multiplan s daily trading volume averaged R$35.4 million in 3Q15, 21.5% higher than the same period in the last year (R$29.1 million). The daily number of traded shares in 9M15 increased 30.0% over 2014, with average daily trading volume of 40.7 million. Multiplan s shares are listed on the following indexes: Bovespa Index (IBOV), Brazil Index (IBRX), Brazil 50 Index (IBRX 50), Tag Along Index (ITAG), Corporate Governance Index (IGC), Real Estate Index (IMOB), Mid-Large Cap Index (MLCX), MSCI Brazil Index Fund, FTSE EPRA/NAREIT Global Index, FTSE All World Emerging Index, FTSE All World EX US Index Fund, MSCI Emerging Markets Index, MSCI BRIC Index Fund, SPL Total International Stock Index, S&P Global ex-us Property Index, Market Vectors Brazil Index, Total Return and Market Vectors Brazil Index Price. 264, M Average daily traded volume in BRL Average daily traded volume in number of shares 359, M 492, M 640, M Evolution of daily average number of shares traded 835, M M Traded Volume (15 day average) Multiplan Ibovespa 48.2 M 43.2 M 38.2 M 33.2 M 28.2 M 23.2 M M Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 One year analysis: MULT3, MULT3 volume and Bovespa Index Base 100 = September 30, 2014 On, 29.2% of the Company s shares were owned directly and indirectly by Mr. and Mrs. Peres. Ontario Teachers Pension Plan (OTPP) owned 28.8% and the free-float was equivalent to 40.8%. Shares held by management and in treasury totaled 1.1% of the outstanding shares. Total shares outstanding are 189,997,214. MULT3 at BM&FBOVESPA 3Q15 3Q14 Chg. % Average Closing Price (R$) % Closing Price (R$) % Average Daily Traded Volume (R$) 35.4 M 29.1 M 21.5% Market Cap (R$) 8,055.9 M 9,522.7 M 15.4% I Shareholders capital stock breakdown on September 30, OTPP - Ontario Teachers Pension Plan 34

35 12. Portfolio Portfolio 3Q15 Opening State Multiplan % Avg. Total GLA Rent (month) 1 Sales (month) 2 Avg. Occupancy Rate Operating Shopping Centers BHShopping 1979 MG 80.0% 47,110 m² 160 R$/m² 1,869 R$/m² 98.3% RibeirãoShopping 1981 SP 80.0% 68,658 m² 71 R$/m² 917 R$/m² 99.5% BarraShopping 1981 RJ 51.1% 74,714 m² 196 R$/m² 2,224 R$/m² 99.8% MorumbiShopping 1982 SP 65.8% 56,102 m² 196 R$/m² 2,323 R$/m² 99.9% ParkShopping 1983 DF 61.7% 53,524 m² 124 R$/m² 1,670 R$/m² 99.0% DiamondMall 1996 MG 90.0% 21,386 m² 163 R$/m² 2,227 R$/m² 99.7% New York City Center 1999 RJ 50.0% 22,271 m² 47 R$/m² 702 R$/m² 100.0% Shopping AnáliaFranco 1999 SP 30.0% 51,725 m² 130 R$/m² 1,568 R$/m² 96.3% ParkShoppingBarigüi 2003 PR 84.0% 50,578 m² 86 R$/m² 1,413 R$/m² 99.5% Pátio Savassi 2004 MG 96.5% 18,040 m² 125 R$/m² 1,739 R$/m² 97.0% Shopping Santa Úrsula 1999 SP 62.5% 23,057 m² 27 R$/m² 628 R$/m² 93.0% BarraShoppingSul 2008 RS 100.0% 73,060 m² 59 R$/m² 1,188 R$/m² 99.3% Shopping Vila Olímpia 2009 SP 60.0% 28,369 m² 91 R$/m² 1,272 R$/m² 92.4% ParkShoppingSãoCaetano 2011 SP 100.0% 39,266 m² 79 R$/m² 1,095 R$/m² 98.3% JundiaíShopping 2012 SP 100.0% 34,385 m² 67 R$/m² 1,001 R$/m² 97.3% ParkShoppingCampoGrande 2012 RJ 90.0% 42,819 m² 67 R$/m² 854 R$/m² 93.6% VillageMall 2012 RJ 100.0% 25,686 m² 90 R$/m² 1,544 R$/m² 95.8% Parque Shopping Maceió 2013 AL 50.0% 37,540 m² 52 R$/m² 750 R$/m² 99.4% Subtotal operating Shopping Centers 73.8% 768,290 m² 108 R$/m² 1,436 R$/m² 98.1% Operating office tower ParkShopping Corporate 2012 DF 50.0% 13,360 m² Leasing phase Morumbi Corporate 2013 SP 100.0% 74,198 m² 90.0% Subtotal operating office towers 92.4% 87,558 m² Total properties for lease 75.7% 855,848 m² Malls under development ParkShoppingCanoas 2017 RS 80.0% 48,000 m² 68.0% Subtotal malls under development 80.0% 48,000 m² Expansion under development BarraShopping Medical Center Exp RJ 51.1% 3,515 m² 97.0% Subtotal expansion under development 51.1% 3,515 m² Total portfolio 75.8% 906,627 m² ¹ 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). ² 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. 35

36 36

37 13. Ownership Structure Multiplan s ownership structure on, is described in the chart below. Of a total of 189,997,214 shares issued, 178,138,867 are common voting shares and 11,858,347 are preferred shares held exclusively by Ontario Teachers Pension Plan and are not listed or traded on any stock exchange. Multiplan s ownership interests in Special Purpose Companies (SPCs) are as follows: MPH Empreendimento Imobiliário Ltda.: Owns 60.0% interest in Shopping Vila Olímpia, located in the city of São Paulo, State of São Paulo. Multiplan holds directly and indirectly a 100.0% interest in MPH. Manati Empreendimentos e Participações S.A.: Owns 75.0% interest in Shopping Santa Úrsula, located in the city of Ribeirão Preto, State of São Paulo. Multiplan holds a 50.0% interest in Manati. 37