2Q15 RESULTS CONFERENCE CALL IN ENGLISH

Transcription

1 2Q15 RESULTS Renato Rique CEO Henrique Cordeiro Guerra Executive Director Renato Botelho CFO Eduardo Prado IR Superintendent Samantha Senna IR Specialist Yan Oliveira IR Analyst Phone: +55 (21) ir.aliansce.com.br CONFERENCE CALL IN ENGLISH August 7, 2015 Friday 11:00 a.m. (US EST) / 12:00 p.m. (BR) Phone: +1 (646) Code: Aliansce Replay available for 7 days: +55 (11) Password: Aliansce

2 Aliansce presents its 2Q15 Results and Financial and Operating Highlights Rio de Janeiro, August 6, 2015 Aliansce Shopping Centers S.A. (Bovespa: ALSC3), one of Brazil s largest shopping mall owners, announces its results for the second quarter of 2015 (2Q15). The Company s managerial financial information is presented on a consolidated basis and in thousands of Brazilian Reais (R$). These financial statements are presented in accordance with accounting practices adopted in Brazil, comprising CPCs issued and approved by the CVM (Brazilian Securities and Exchange Commission), as well as international financial reporting standards (IFRS), except in regard to the effects of the adoption of pronouncements CPC 19 (R2) and CPC 18 (R2) IFRS 10 and 11. Please refer to the comments in the Appendices section for an analysis of the reconciliation of the consolidated financial statements and managerial information. The Company s nonaccounting information has not been reviewed by the independent auditors. 2Q15 highlights and recent events The financial information highlighted below is managerial in nature and based on the Company s consolidated financial statements. Occupancy rate of 97.3%, only 0.1 p.p. below the previous quarter. Occupancy cost of 10.2% in 2Q15, still below industry average. Decrease in net late payments to 3.2% in 2Q15. In 12 of the 19 malls in the Company s portfolio, net late payments were lower or in line with 2Q14. Same-store-sales (SSS) of satellite stores excluding Shopping da Bahia grew 7.0% in the quarter. The mall is undergoing 2 expansions. Satellite stores accounted for around 67.9% of rent revenue in 2Q15. The Company s SSS were of -0.4% in 2Q15. Specific issues in some of our malls and the performance of electronics stores impacted sales and rent performance. Same-store-rent (SSR) grew 4.0% in 2Q15. Shopping da Bahia began charging for parking: After the municipal government authorized malls to charge for parking, Shopping da Bahia started charging on June 22. The Company estimates a stabilized parking NOI of R$7.6 million at stake. Excluding non-recurring items, operating costs were reduced by 1.5% in 2Q15 and by 6.1% in the first half of the year, mainly due to a 14.2% decrease in operating costs per sqm of newer malls in the quarter. General and administrative expenses increased only 1.2% in the quarter. Excluding divestment of interests in 2014*, Aliansc s net revenue grew 5.2% and adjusted EBITDA increased by 5.0%. Continued asset recycling process with partial divestment of interest in Via Parque Shopping. Accretive sale that reinforces the company's cash position. On July 13, the Company announced an agreement to sell 35% of Via Parque Shopping to GIC. The Company expects to receive R$132.4 million still in 3Q15. Considering the expected NOI and the budgeted CAPEX for the period, the selling price s present value would be R$157.5 million, including the earn-out, implying a cap rate of 8.8%. On May 26, the Company hired a financing totaling R$74.4 million at a cost of TR % p.a., with a 15-year term, having a 3-year of grace period for the principal amount. Deleveraging trend continues with Net Debt / EBITDA LTM being reduced from 5.6x in 3Q13 to 4.4x in 2Q15. The Company s debt is self-amortizing and 85.9% of total debt is long-term. We have built a strong balance sheet in order to go through times of economic instability. Since March 2013, the Selic rate rose 7.0 p.p. and the average cost of our debt increased 1.8 p.p.. *Stakes in Shopping da Bahia and Santana Parque Shopping, Boulevard Corporate Tower and C&A store in Boulevard Shopping Feira de Santana.

3 Unless otherwise stated, all operating and financial information is expressed in thousands of Brazilian Reais and based on consolidated figures, pursuant to Brazilian Corporate Law and International Financial Reporting Standards (IFRS), in accordance with the pronouncements set forth by the Accounting Pronouncements Committee (CPC), duly approved by the Brazilian Securities and Exchange Commission (CVM). The table below shows the Company s main operating and managerial financial indicators in 2Q15, as well as their variations compared to the same period in Main indicators 2Q15 2Q14 Financial Performance - Managerial Information 2Q15/2Q14 (Amounts in thousands of Reais, except percentages) 1H14 /1H14 Gross revenue 138, , % 273, , % Net revenue 127, , % 250, , % NOI 108, , % 213, , % Margin % 89.5% 90.3% -0.8 p.p. 89.3% 89.7% -0.3 p.p. NOI/sqm % % Adjusted EBITDA¹ 92,938 91, % 176, , % Margin % 73.1% 73.9% -0.8 p.p. 70.5% 71.0% -0.5 p.p. Net Income 7,288 25, % 9,076 28, % Margin % 6.0% 21.4% p.p. 6.0% 21.4% p.p. Adjusted Net Income¹ 10,178 11, % 12,228 11, % Margin % 8.4% 9.5% -1.1 p.p. 8.4% 9.5% -1.1 p.p. Adjusted FFO¹ 27,377 30, % 46,747 48, % Margin % 22.5% 25.7% -3.2 p.p. 19.5% 21.0% -1.5 p.p. Total rent/sqm² % % SAR/sqm (same area rent)² % % SSR/sqm (same store rent)² % % Operating Performance - Managerial Information Sales 2,014,181 1,949, % 3,911,957 3,695, % Sales/sqm² 1, , % 1, , % Sales/sqm Ex-Shopping da Bahia² 1, , % 1, % SAS/sqm (same area sales)² 1, , % 1, , % SAS/sqm Ex-shopping da Bahia² 1, , % 1, % SSS/sqm (same store sales)² 1, , % 1, , % SSS/sqm Ex-Shopping da Bahia² 1, , % 1, % Occupancy costs (% of sales) 10.2% 9.8% 0.4 p.p. 10.4% 10.2% 0.3 p.p. Net Late Payments 3.2% 3.4% -0.2 p.p. 4.4% 3.8% 0.6 p.p. Occupancy Rate 97.3% 97.1% 0.2 p.p. 97.3% 97.1% 0.2 p.p. Total GLA (sqm) 681, , % 681, , % Owned GLA (sqm) 444, , % 444, , % GLA tha reported sales (sqm)² 394, , % 392, , % ¹Adjusted by Non-recurring events and Non-cash effects ² Monthly average Impact of the sale of interests in 2014 The chart below summarizes variations in main financial indicators, adjusting the 2014 figures to reflect the Company s current interests. During 2014, the Company sold minority stakes in Shopping da Bahia and Santana Parque Shopping, 100% interest in Boulevard Corporate Tower and the C&A store in Boulevard Shopping Feira de Santana: Main indicators 2Q15 2Q14 Pro Forma Financial Performance - Managerial Information 2Q15/2Q14 1H14 Pro Forma /1H14 Gross revenue 138, , % 273, , % Net revenue 127, , % 250, , % NOI 108, , % 213, , % Margin % 89.5% 90.0% -0.5 p.p. 89.3% 89.4% -0.1 p.p. Adjusted EBITDA¹ 92,938 88, % 176, , % Margin % 73.1% 73.2% -0.1 p.p. 70.5% 70.7% -0.2 p.p. Adjusted FFO¹ 27,377 31, % 46,747 46, % Margin % 22.5% 27.1% -4.6 p.p. 19.5% 20.8% -1.3 p.p. ¹Adjusted by non-recurring effects and non-cash items

4 Our Portfolio Aliansce holds interest and/or manages malls located in all Brazilian regions and cover all major income segments in the country. Owned GLA per Group 2Q15 2Q14 In order to illustrate the Company s growth in the coming years, the portfolio was divided into two groups according to the length of operation or current phase of each asset: 66.9% 33.1% 56.9% 43.1% Mature Assets: mature malls that have been operating for more than five years. New Generation Assets: malls under a maturation phase (i.e. have been operating for less than five years) or that have undergone recent renovations. Mature Assets New Generation Mature Assets (Malls with more than 5 years of operating history) Shopping da Bahia Shopping Taboão Via Parque Shopping Shopping Grande Rio Carioca Shopping Shopping West Plaza Bangu Shopping Santana Parque Shopping Caxias Shopping Boulevard Shopping Brasília Boulevard Shopping Belém Shopping Santa Úrsula New Generation Assets (Malls with less than 5 years of operating history) Indicates Aliansce s presence Boulevard Shopping Belo Horizonte Boulevard Shopping Campos Parque Shopping Belém Boulevard Shopping Vila Velha Boulevard Shopping Nações Bauru Parque Shopping Maceió Third Party Malls (Managed by Aliansce) Shopping Parangaba Shopping Leblon Shopping Jequitibá Shopping Park Lagos Boulevard Shopping Feira de Santana Shopping Park Europeu Boulevard Shopping Vitória da Conquista* Pátio Alcântara Continental Shopping Passeio Shopping Santa Cruz Shopping Moinhos Shopping Floripa Shopping *Under Development São Gonçalo Shopping Boulevard Shopping Camaçari* By the end of 2Q15, Aliansce held interest in 19 operational malls, totaling thousand sqm of owned GLA in operation. The Company also acts as service provider, planning, managing and leasing 14 third-party malls with a combined GLA of thousand sqm by the end of 2Q15.

5 The percentages below reflect the Company s interests at the end of 2Q15: Operating Malls State % Aliansce GLA (sqm) Owned GLA Occupancy Services (sqm) rate (%) rendered Mature Assets - more than 5 years of operating history 65.96% 451, , % Shopping da Bahia BA 66.43% 62,912 41, % M / L / SSC Shopping Taboão SP 78.00% 36,737 28, % M / L / SSC Via Parque Shopping RJ 73.91% 57,258 42, % M / L / SSC Shopping Grande Rio RJ 25.00% 37,074 9, % M / L / SSC Carioca Shopping RJ % 26,995 26, % M / L / SSC Shopping West Plaza SP 25.00% 33,799 8, % M / L / SSC Bangu Shopping RJ % 55,236 55, % M / L / SSC Santana Parque Shopping SP 33.40% 26,461 8, % M / L / SSC Caxias Shopping RJ 89.00% 25,558 22, % M / L / SSC Boulevard Shopping Brasília DF 50.00% 17,510 8, % M / L / SSC Boulevard Shopping Belém PA 75.00% 39,465 29, % M / L / SSC Shopping Santa Úrsula SP 37.50% 23,057 8, % - C&A Stores n/a 69.05% 9,395 6, % n/a New Generation Assets - less than 5 years of operating history 63.88% 230, , % Boulevard Shopping Belo Horizonte MG 70.00% 43,084 30, % M / L / SSC Boulevard Shopping Campos RJ % 24,756 24, % M / L / SSC Parque Shopping Belém PA 50.00% 30,014 15, % M / L / SSC Boulevard Shopping Vila Velha ES 50.00% 34,189 17, % M / L / SSC Boulevard Shopping Nações Bauru SP % 28,349 28, % M / L / SSC Parque Shopping Maceió AL 50.00% 37,540 18, % M / L / SSC Shopping Parangaba CE 40.00% 32,208 12, % M / L / SSC Total Portfolio 65.26% 681, , % (M) Management (L) Leasing (SSC) Shared Services Center The ten most representative malls in the portfolio, which accounted for 82.9% of the Company s NOI in 2Q15, have an occupancy rate of 98.3%.

6 Financial Highlights Gross Revenue Gross revenue increased by 3.7% in 2Q15, reaching R$138.6 million. Excluding the divestment of interests in 2014, the Company s gross revenue grew 5.4% in 2Q15. The double-digit increase in parking revenue in 10 of the 19 malls resulted in the 14.2% parking revenue increase in 2Q15. The 18.5% growth in service revenue from third-party malls positively affected this indicator. Excluding non-cash items a portion of key money and the straight line rent, gross revenue was 4.9% higher in 2Q15. Revenues from Boulevard Belém were impacted by the decrease in key money after the completion of five years of operation in 4Q14, as key money accounting for the 1 st lease period has ended. The increase in total mall revenue excluding key money was 10.2% in the quarter. Revenue Breakdown - 2Q15 Gross Revenues (R$ thousands) Services rendered 8.3% Transfer fee 0.3% Parking 16.9% Rent 71.5% Minimum rent 80.6% 133,573 7,562 (2,578) + 3.7% 138,557 Key Money 3.0% Stands and Kiosks 11.1% Overage rent 8.3% 2Q14 Organic Divestment of Interests 2Q15 Managerial Financial Information 2Q15 2Q14 Revenues per type 2Q15/2Q14 (Amounts in thousands of Reais, except percentages) 1H14 /1H14 Rentals 96,679 93, % 191, , % Key Money 4,192 5, % 8,330 11, % Parking 23,402 20, % 44,913 38, % Transfer fee % 560 1, % Services rendered 11,527 10, % 23,605 20, % Straight line rent adjustment - CPC 06 2,364 2, % 4,889 5, % Total 138, , % 273, , % Managerial Financial Information 2Q15 2Q14 Revenues per mall 2Q15/2Q14 (Amounts in thousands of Reais, except percentages) 1H14 /1H14 Shopping da Bahia 17,955 19, % 35,685 38, % Shopping Taboão 8,782 8, % 17,250 16, % Via Parque Shopping 9,390 8, % 18,660 17, % Shopping Grande Rio 3,498 3, % 7,032 6, % Carioca Shopping 8,927 7, % 16,768 15, % Bangu Shopping 14,684 13, % 28,471 25, % Santana Parque Shopping 2,498 3, % 4,820 6, % Shopping Santa Úrsula 1,209 1, % 2,396 2, % Caxias Shopping 6,176 6, % 12,099 11, % Boulevard Shopping Brasília 2,403 2, % 4,630 4, % Boulevard Shopping Belém 15,557 15, % 30,412 28, % Boulevard Shopping Belo Horizonte 10,036 10, % 20,160 19, % Boulevard Campos 5,136 4, % 10,086 9, % Parque Shopping Belém 3,391 3, % 6,611 6, % Boulevard Shopping Vila Velha 1,640 1, % 3,268 3, % Boulevard Shopping Nações Bauru 3,994 3, % 8,113 7, % Shopping West Plaza 1,877 1, % 3,776 3, % Shopping Parangaba 2,549 2, % 5,002 4, % Parque Shopping Maceió 4,073 3, % 8,125 6, % C&A Stores 889 1, % 1,779 2, % Boulevard Corporate Tower - (278) n/a - - n/a Services 11,527 10, % 23,605 20, % Straight line rent adjustment - CPC 06 2,364 2, % 4,889 5, % Total 138, , % 273, , %

7 Rent Revenue The Company s rent revenue increased by 3.2% in 2Q15. Excluding the divestment of interests in 2014, rent revenue grew by 5.4% in the quarter. In addition, the strong comparison basis rent revenue growth of 16.8% in 2Q14 impacted the variation in the quarter. Both malls that completed the first rent renewal process in the past 12 months recorded significant growth in minimum rent revenue. Boulevard Shopping Belém increased minimum rent revenue by 11.5% and Boulevard Shopping Brasília grew 18.2% in 2Q15. Rent revenue performance in Carioca Shopping and Bangu Shopping reflects the successful expansions opened in Another highlight still relates to the performance of Via Parque Shopping Upon completion of the new movie theater and renovation works, rent revenue grew 8.7% in 2Q15 and 8.9% in the year. Managerial Financial Information 2Q15 2Q14 2Q15/2Q14 1H14 /1H14 Rent Revenues (Amounts in thousands of Reais, except percentages) (Amounts in thousands of Reais, except percentages) Shopping da Bahia 17,538 18, % 34,890 36, % Shopping Taboão 6,282 6, % 12,495 12, % Via Parque Shopping 6,379 5, % 12,873 11, % Shopping Grande Rio 2,570 2, % 5,149 4, % Carioca Shopping 7,043 6, % 13,503 12, % Bangu Shopping 10,993 9, % 21,415 19, % Santana Parque Shopping 1,768 2, % 3,405 4, % Shopping Santa Úrsula % 1,674 1, % Caxias Shopping 4,391 4, % 8,687 8, % Boulevard Shopping Brasília 1,877 1, % 3,604 3, % Boulevard Shopping Belém 12,351 11, % 24,255 21, % Boulevard Shopping Belo Horizonte 6,766 6, % 13,624 13, % Boulevard Campos 3,871 3, % 7,536 7, % Parque Shopping Belém 2,427 2, % 4,805 4, % Boulevard Shopping Vila Velha 1,600 1, % 3,184 2, % Boulevard Shopping Nações Bauru 2,635 2, % 5,564 5, % Shopping West Plaza 1,354 1, % 2,751 2, % Parque Shopping Maceió 2,988 2, % 5,995 4, % Shopping Parangaba 2,104 1, % 4,155 3, % C&A Stores 889 1, % 1,779 2, % Boulevard Corporate Tower - (278) n/a - - n/a Total 96,679 93, % 191, , % Same-area rent (SAR) and same-store rent (SSR) grew 4.0% in the quarter. Excluding Shopping da Bahia, which is currently undergoing two expansion works, both indicators grew 4.5% in 2Q15 and 5.5% and 5.6% in the first half of 2015, respectively. The IGP-DI the main inflation index for our annual lease adjustments had an impact on the growth of such indicators, since agreements with anniversary dates in the fourth quarter were adjusted by an average rate of 3.7% at the end of According to the Brazilian Central Bank Market Report of July 31, the market expectation is that the IGP-DI reaches 7.4% at the end of Malls reaching five years of operating history in 2014 showed an average double-digit SSR growth in 2Q15, reflecting the below-average occupancy cost before rent renewal processes. Indicators 2Q15 Ex-Shopping da Bahia Indicators Ex-Shopping da Bahia SAR 4.0% 4.5% SAR 4.9% 5.5% SSR 4.0% 4.5% SSR 5.0% 5.6%

8 Cost of Rentals and Services In 2Q14, cost of rentals and services included a non-operating effect of R$1.1 million regarding a reversal of a provision for contingencies related to Via Parque Shopping. This figure creates a distortion in the comparison basis, especially with regard to operating costs. The Company s cost of rentals and services grew 3.8% in 2Q15. Excluding this reversal, total costs increased only 0.9%. Operating Costs (R$ thousands) -1.5% In 12 of the 19 malls, operating costs decreased in 2Q15 compared to the same period last year. One of the quarter s highlights was the 14.2% reduction in operating costs per sqm of assets with less than 5 years of operating history. Adjusting the basis of comparison for the reversal of provision in Via Parque Shopping, total operating costs were reduced by 1.5% in. 8,835 7,771 2Q14 8,699 2Q15 Operating costs Operating costs ex-reversion Parking costs were impacted, among other things, by the increase in the number of parking spaces in Caxias Shopping and higher costs in Shopping Taboão associated to the deck parking. Pre-operating costs were related to marketing expenses due to the opening of the Carioca Shopping expansion. In 2Q15, the establishment of provision for rent and condominium accounts receivable in Via Parque Shopping, Boulevard Brasília and Boulevard Vila Velha, related to previous years, affected the PDA heading. The table below shows the breakdown of rentals and services costs and the impact in total costs of the reversal of the provision in Via Parque in 2Q14: Managerial Financial Information 2Q15 2Q14 2Q15/2Q14 1H14 /1H14 Costs per type (Amounts in thousands of Reais, except percentages) Depreciation and amortization 16,930 18, % 34,022 36, % Mall operating costs 8,699 7, % 17,913 18, % Parking costs 5,255 4, % 10,696 9, % Pre-operating expenses 487 (353) n/a % Leasing and Planning costs 1,984 1, % 3,287 3, % Provision for doubtful accounts 4,095 3, % 7,624 5, % Total 37,450 36, % 74,030 74, % Reversal of Contingency Provision¹ - 1,065 n/a - 1,065 n/a Total 37,450 37, % 74,030 75, % ¹In Via Parque Shopping Gross Income Gross income totaled R$89.6 million in 2Q15, climbing 2.9% compared to 2Q14. Excluding the divestment of interests in 2014, gross income grew 6.7% in 2Q15. The gross margin increased by 1.0 p.p. in the quarter, excluding divestments in Gross Income (R$ thousands) 166, % 87,103 89, % 176,679 2Q14 2Q15 1H14

9 NOI NOI amounted to R$109.0 million in 2Q15, an increase of 1.6% compared to 2Q14. NOI margin was 89.5% in the quarter. The main factor was a lower key money revenue. Excluding the divestment of interests in 2014, the Company s NOI increased by 4.0% over 2Q14. Managerial Financial Information 2Q15 2Q14 NOI 2Q15/2Q14 (Amounts in thousands of Reais, except percentages) 1H14 /1H14 Rents 99,435 96, % 196, , % Key Money 4,192 5, % 8,330 11, % Parking Results 18,147 15, % 34,217 29, % Operational Income 121, , % 239, , % (-) Mall operational costs (8,699) (7,771) 11.9% (17,913) (18,013) -0.6% (-) Provision for doubtful accounts (4,095) (3,708) 10.4% (7,624) (5,862) 30.1% (=) NOI 108, , % 213, , % NOI Margin 89.5% 90.3% -0.8 p.p. 89.3% 89.7% -0.3 p.p. Operating (Expenses) / Income General and administrative expenses increased by only 1.2% in 2Q15. The reduction in administrative expenses, travel expenses and legal and tax expenses were among the factors that accounted for the dilution of expenses in the quarter. The main item of other operating (expenses) / income refers to obligations related to the beginning of the collection of parking fees at Shopping da Bahia. Managerial Financial Information 2Q15 2Q14 Operating (Expenses)/Income 2Q15/2Q14 (Amounts in thousands of Reais, except percentages) 1H14 /1H14 Administrative and General expenses (13,147) (12,985) 1.2% (32,294) (30,498) 5.9% Deferred and Intangible Depreciation and Amortization E (959) (791) 21.2% (1,870) (1,538) 21.6% Other Operating (Expenses)/Income (5,534) 15,216 n/a (8,631) 13,943 n/a Total (19,640) 1,441 n/a (42,794) (18,093) 136.5% Gain on sale of asset 0 (16,587) n/a (0) (16,692) % Non-recurring Items 4, % 6, % Adjusted Total (15,095) (14,957) 0.9% (36,365) (34,097) 6.7% EBITDA and Adjusted EBITDA Aliansce s adjusted EBITDA totaled R$92.9 million in 2Q15, 2.0% more than in 2Q14. Excluding the divestment of interests in 2014, adjusted EBITDA grew by 5.0% in the quarter. Managerial Financial Information 2Q15 2Q14 2Q15/2Q14 (Amounts in thousands of Reais, except percentages) 1H14 /1H14 Net revenues 127, , % 250, , % (-) Costs (37,450) (36,066) 3.8% (74,030) (74,083) -0.1% (-) Expenses (19,640) 1,441 n/a (42,794) (18,093) 136.5% (+) Depreciation and amortization 17,915 19, % 35,943 37, % (=) EBITDA 87, , % 169, , % (+)/(-) Non-recurring (expenses) / income 5,032 (16,751) n/a 6,917 (15,451) n/a (-) Capital gain on acquisitions and/or divestments - (16,587) n/a (0) (16,692) % (+) Pre-operational expenses 487 (353) n/a % (+)/(-) Others 4, % 6, % (=) Adjusted EBITDA 92,938 91, % 176, , % Adjusted EBITDA Margin 73.1% 73.9% -0.8 p.p. 70.5% 71.0% -0.5 p.p.

10 Financial Result In 2Q15, net financial expenses dropped 2.3% over 2Q14. The increase in financial income, due to the Company s higher average cash balance in the quarter, was the key factor behind such decrease. Financial Result (R$ thousands) 2Q14 2Q15 1H14 (53,585) (52,373) (105,927) (104,676) Net Income and Adjusted Net Income The Company s net income totaled R$7.3 million in 2Q15. Excluding non-recurring and non-cash effects, net income came to R$10.2 million in 2Q15. In the year, adjusted net income totaled R$12.3 million, up 7.9% compared to the first half of Managerial Financial Information 2Q15 2Q14 2Q15/2Q14 (Amounts in thousands of Reais, except percentages) 1H14 /1H14 Net Income - Controlling Shareholders 7,288 25, % 9,076 28, % (+)/(-) Non-recurring (expenses)/income 5,032 (16,611) n/a 6,917 (15,451) n/a (-) Straight line rent adjustment - CPC 06 (2,252) (2,505) -10.1% (4,635) (5,151) -10.0% (+) non disbursed financial expenses 978 1, % 2,152 2, % (+)/(-) non-cash taxes 414 4, % 873 2, % (-) Capitalized Interest (1,500) (644) 133.1% (2,783) (1,619) 71.9% (+) SWAP % % (=) Adjusted Net Income 10,178 11, % 12,228 11, % FFO and Adjusted FFO (AFFO) Adjusted FFO (AFFO) stood at R$27.4 million in 2Q15, with a margin of 22.5%. Excluding the divestment of interests in 2014, AFFO margin was 27.1%. Managerial Financial Information 2Q15 2Q14 FFO 2Q15/2Q14 (Amounts in thousands of Reais, except percentages) 1H14 /1H14 Net Income - Controlling Shareholders 7,288 25, % 9,076 28, % (+) Depreciation and Amortization 17,198 19, % 34,519 36, % (=) FFO 24,487 44, % 43,595 65, % FFO Margin % 20.1% 37.6% p.p. 35.9% 55.4% p.p. (+)/(-) Non-recurring expenses/(revenues) 5,032 (16,611) n/a 6,917 (15,451) n/a (-) Straight line rent adjustment - CPC 06 (2,252) (2,505) -10.1% (4,635) (5,151) -10.0% (+) Stock Option 978 1, % 2,152 2, % (+)/(-) Non-cash taxes 414 4, % 873 2, % (-) Capitalized Interest (1,500) (644) 133.1% (2,783) (1,619) 71.9% (+) SWAP % % (=) Adjusted FFO 27,377 30, % 46,747 48, % AFFO Margin % 22.5% 25.7% -3.2 p.p. 19.5% 21.0% -1.5 p.p.

11 Operating Highlights Despite the recession, increased unemployment rates, high interest rates and specific portfolio issues, Aliansce s malls showed great resilience in terms of occupancy rate, net late payments and occupancy cost. Occupancy rate and net late payments remained unchanged compared to 2Q14. The Company s occupancy cost remained below industry average, generating opportunities for future real rent increases, particularly among newer assets of portfolio. Sales Performance Total sales were up 3.3% in 2Q15 and 5.9% in the first half of Sales of the Company s malls in 2Q15 were impacted by the performance of anchor stores and mega stores, as well as the performance of Shopping da Bahia, over the quarter. It is important to note the strong comparison basis, considering SAS and SSS growth of 9.7% and 9.0% in 2Q14, respectively. The sales performance of anchor and mega stores in the quarter was affected by the performance of electronics stores in 2Q15, due to the strong comparison basis arising from the World Cup in 2Q14. The percentage of anchor and mega stores in rent revenue and lower occupancy cost of these stores mitigate the effects of such performance in the Company s results. The two ongoing expansion works at Shopping da Bahia have disrupted customer access and flow inside the mall, which ultimately impacted sales figures in the quarter. The construction of the structure that will connect the mall to the future expansion, featuring a total GLA of 10,000 sqm and scheduled to open in 4Q17, was completed on May 31. In addition to serving the expansion, this new area also increased the number of parking spaces in the mall and provided space for new movie screens, which are currently under negotiations with the tenant. Blocked access 1 st Expansion Mall access blocked and customer flow impaired 2 nd Expansion Connecting structure construction works completed on May 31

12 The following charts summarize key quarter and year-to-date indicators, highlighting the effects of Shopping da Bahia s performance. Excluding electronics stores, SSS in 2Q15 was of 1.6%. 0.1% SSS and SAS - 2Q15 2.2% 1.2% 1.6% 0.8% 3.9% 4.4% 1.6% 2.3% SSS and SAS - 4.0% 3.4% 3.5% 2.7% 5.1% 5.7% -0.4% Total Ex-Shopping da Bahia Ex-Eletronics Ex-Electronics and Shop. da Bahia Total Ex-Shopping da Bahia Ex-Eletronics Ex-Electronics and Shop. da Bahia SSS SAS SSS SAS The table below shows same-store sales performance in different store types, with and without the effect of Shopping da Bahia. The main highlight was the performance of satellite stores, considering their relevance to the Company s rent revenue. Excluding Shopping da Bahia, satellite stores recorded an SSS of 7.0% and 7.2% in 2Q15 and in the first half of 2015, respectively. The graph shows the impact of the performance of electronics stores on the SSS of anchors and mega stores in the quarter. Store Type SSS 2Q15 SSS Ex-Shopping da Bahia SSS SSS Ex-Shopping da Bahia Anchors -3.5% -3.5% 0.5% 0.7% Satellites 3.0% 7.0% 2.8% 7.2% Mega Stores -7.8% -11.4% -2.3% -4.7% Leisure 11.4% 12.6% 13.4% 14.9% SSS 2Q15 Anchors Mega Stores -0.5% -3.5% -3.1% -7.8% SSS SSS Ex-Electronics Occupancy Rate Occupancy Rate (%) 97.1% 97.2% 97.5% 97.4% 97.3% Aliansce's occupancy rate reached at 97.3% in 2Q15, 0.2 p.p. above the 2Q14 occupancy rate, and 0.1 p.p. below 1Q15 figures. Some of the highlights for the period include the 4.3 p.p. increase in the occupancy rate of Parque Shopping Maceió, and 1.5 p.p. increase in Shopping Santa Úrsula. 2Q14 3Q14 4Q14 1Q15 2Q15 Net Late Payments: Net Late Payments Net late payments stood at 3.2% in 2Q15, down 0.2 p.p. compared to 2Q14. In 12 of the 19 malls in our portfolio, net late payment was lower or in line with 2Q % 2.5% 2.4% 5.3% 3.2% 2Q14 3Q14 4Q14 1Q15 2Q15

13 Occupancy Cost (% of sales) The Company s portfolio occupancy cost stood at 10.2% in 2Q15, an increase of 0.4 p.p. compared to 2Q14 and 0.4 p.p. lower than 1Q15. Occupancy cost grew only by 0.7 p.p. over the last three years, despite the 14.2% compound annual growth rate (CAGR) of the rent revenue in the period. The significant sales growth within the Company malls, in this period, is the main reason why Aliansce was able to significantly increase rent without affecting tenants operating margins. Occupancy Cost - New Generation Assets Occupancy Cost - Mature Assets Total Satellites Total Satellites 13.5% 13.6% 13.6% 13.9% 10.2% 9.5% 9.7% 10.3% 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 Occupancy Cost 13.3% 13.4% 13.6% 13.8% 9.5% 4.8% 9.9% 9.8% 10.2% 5.6% 5.6% 5.9% 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Total¹ Satellites Anchors ¹ Includes mega stores and leisure CAPEX The Company s gross CAPEX was R$37.8 million in 2Q15 and net CAPEX came to R$36.3 million. The gross CAPEX of expansions and renovations represented most of the disbursement. The table below shows the CAPEX to be disbursed by the end of The Expansions heading includes ongoing projects and future expansions. CAPEX to Complete¹ 2H E 2017E TOTAL (Amounts in millions of Reais) Expansions Maintenance / Renovations Other Key money / Land swap² Total ¹ Real values Monetization of excess land

14 Growth Drivers According to our current schedule of expansions, the Company should reach thousand sqm of own GLA by the end of ,804 13,163 8,852 8, , % Construction Potential Actual 2015E 2016E 2017E End of 2017 Expansions Aliansce s portfolio features surplus construction potential in 13 of the Company s 19 malls. Considering each development s multi-annual plan, the use of such surplus was divided among expansion of retail area in the Company s malls and the development of mixed-use projects. Such allocation may be altered based on the Company s best interests. The figures below reflect Aliansce s interest and do not consider the announced ongoing and future expansion projects. Mixed-use Projects (Private Built Area - sqm) Expansion Potential (GLA - sqm) (Amounts at Aliansce's stake) Carioca Shopping 11,900 1,522 Bangu Shopping 7,000 25,000 Shopping Grande Rio 2,000 7,500 Shopping Taboão 26,600 24,960 Shopping da Bahia 46,466 4,042 Parque Shopping Maceió 91,500 15,000 Boulevard Shopping Campos 41,000 20,000 Boulevard Shopping Vila Velha 15,000 10,000 Boulevard Shopping Nações Bauru 28,000 15,000 Caxias Shopping 17,800 16,576 Boulevard Shopping Belo Horizonte 7,000 3,500 Parque Shopping Belém - 11,250 Shopping Parangaba - 4,000 Total 294, ,350

15 Expansions Ongoing projects scheduled to be inaugurated in the next 12 months According to the current expansion schedule, the Company projects an addition of approximately 9.4 thousand sqm to its owned GLA over the next 12 months. The three ongoing expansions feature an estimated CAPEX net of Key Money of R$15.2 million at Aliansce s stake. Ongoing Projects State Opening % Aliansce (R$ million) Net Capex¹ Stabilized NOI Stabilized Cap Boulevard Nações Bauru SP 2Q15-4Q15 7, % 7, N/A NA Shopping da Bahia BA 1Q16 1, % 1, % 24.2% Shopping West Plaza SP 2Q16 3, % % 10.4% Total 12,461 9, % ¹Includes net Key Money and Land Swap ²Real and unleveraged IRR GLA (sqm) % Aliansce Owned GLA (sqm) IRR² (p.a.) Expansion of Boulevard Nações Bauru The first expansion of Boulevard Bauru will add 7.4 thousand sqm to the Company s owned GLA. The GLA will be opened gradually, as the leasing of the area occurs. Considering that the mall area that will serve the expansion is already completed and partially opened to the public, store areas still not leased or under negotiation will not affect the mall s common area management costs or the Company s operating costs. One of the expansion s three anchor stores Lojas Americanas with approximately 1.2 thousand sqm was opened in 2Q15. The tenant mix will also receive a new restaurant Empório Santo Expedito and an exclusive operation for children, in addition to several satellite stores. The Company expects stabilized NOI of R$4.4 million considering the total GLA of the expansion. Expansion of Shopping da Bahia The 20 th expansion of Shopping da Bahia will broaden the range of services offered by the mall, adding 1.3 thousand sqm of owned GLA, which includes a supermarket, a mega store and satellite stores offering different services. The opening was postponed to 1Q16 aligned with the supermarket s revised schedule. Works have already absorbed 30.0% of total estimated investments by 2Q15. The Company expects CAPEX net of Key Money of R$6.0 million and stabilized cap rate of 18.1% p.a. Expansion of Shopping West Plaza The expansion of Shopping West Plaza will add a new state of the art movie theater with seven screens and approximately 3.2 thousand sqm of total GLA. The tenant Cinemark revised its opening schedule to 2Q16 due to changes in the project layout following the new standard of the brand. The Company will also carry out other works to prepare the mall for the new leisure area, featuring new elevators and escalators. The project includes a theater hall with capacity for around 300 people, which will be located in the area where the old movie theater was located, next to the food court, on the third floor.

16 With the opening of the movie theater, the Company expects an increase in consumer traffic on weekends. The net CAPEX expected is R$5.2 million and a real and unleveraged IRR of 10.4% from the expansion. Current facade New facade with movie theater on the 4 th floor Future Expansions As of 2Q16, the Company expects to open three more expansions. The estimated investments for these projects are included in the expansion heading in the table in the CAPEX section. Together, these projects will add 15.3 thousand sqm of owned GLA to the Company s portfolio and will require investments of approximately R$91.1 million, net of the monetization of construction potential and key money. Future Expansions State Opening GLA (sqm) % Aliansce Owned GLA (sqm) Caxias Shopping I RJ 4Q16 7, % 6,790 Shopping da Bahia BA 4Q17 10, % 6,638 Caxias Shopping II RJ 4Q17 2, % 1,907 Total 19,772 15,335

17 Cash and Cash Equivalents and Indebtedness Consolidated net debt was R$1,641.9 million by the end of 2Q15. Excluding minority interests, net debt totaled R$1,571.9 million. In 2Q15, the Company hired a financing totaling R$74.4 million, at a rate of TR (reference rate) % p.a., based on a 15-year term, with three years of grace period for the principal amount. By the end of the quarter, approximately 73% of the Company s debt was indexed to TR (reference rate), TJLP (long-term interest rate) and fixed interest rates. The average debt cost is 12.9% per annum and the average term is 5.8 years. The table detailing the costs and terms of each debt is available in the release appendix. The Company s cash position by the end of 2Q15 did not include the amount of R$132.4 million regarding the down payment for the divestiture transaction of 35% of Via Parque. The Company estimates that such funds will be added to its cash position by the end of 3Q15. Debt breakdown Short-Term Long-Term Total Debt Debt Profile (Amounts in thousands of Reais) Banks 64, ,943 1,046,968 CCI/CRI 88, , ,228 Obligation for purchase of assets 1,343 25,963 27,306 Debentures 120, , ,175 TOTAL DEBT 274,009 1,666,668 1,940,676 Cash and Cash Equivalents (298,727) - (298,727) TOTAL CASH (298,727) - (298,727) NET DEBT (24,718) 1,666,668 1,641,950 TR 67.0% Fixed 2.3% CDI 9.5% TJLP 3.8% IPCA 12.5% IGP-DI 4.8% Principal Amortization Schedule (R$ millions) M

18 The table below shows the reconciliation between consolidated accounting net debt and managerial net debt in 2Q15. The reduction in net debt was a result of the recognition of the Company s share of the net effect of financing for Parque Shopping Belém and Parque Shopping Maceió. Debt breakdown - Consolidated Financial Statements 2Q15 Minorities Via Parque Effects of CPC 18/19 Managerial 2Q15 (amounts in thousands of reais) Banks 1,087,413 - (40,445) 1,046,968 CCI/CRI 508, ,228 Obligation for purchase of assets 26, ,306 Debentures 358,175 - (0) 358,175 TOTAL DEBT 1,980,184 - (39,508) 1,940,676 Cash and Cash Equivalents (294,039) 1,616 (6,304) (298,727) TOTAL AVAILABLE (294,039) 1,616 (6,304) (298,727) NET DEBT 1,686,145 1,616 (45,811) 1,641,950 Stock Performance Aliansce s shares (code ALSC3) traded on the Novo Mercado segment of BM&F Bovespa closed 2Q15 at R$ The daily traded volume averaged R$7.6 million. Base 100 Aliansce - Base = 100 (06/30/2014) R$ Thousand Shareholder Base ,000 12,000 CPPIB 29.16% ,000 8,000 6,000 Free Float 46.96% Renato Rique 21.02% 80 4, , Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Management 2.86% ALSC3 IBOV ADTV 15 days

19 Glossary Abrasce: Brazilian Association of Shopping Centers. Additional Rent: the difference (when positive) between the minimum rent and rent based on a percentage of sales, pursuant to the rental agreements. Adjusted EBITDA: EBITDA + pre-operating expenses +/(-) other non-recurring expenses (revenues). Adjusted FFO (Funds from Operations): Net income controlling shareholders + depreciation + amortization + non-recurring expenses / (revenues) - straight line rent adjustment + stock option +/(-) non-cash taxes - capitalized interest + SWAP effect. Adjusted Net Income: Net income controlling shareholders + non-recurring expenses / (revenues) - straight line rent adjustment + stock option +/(-) non-cash taxes - capitalized interest + SWAP effect. Anchor Stores: Large stores (GLA over 1000 sqm) and well-known stores with special marketing and structural features that attract consumers, thereby ensuring permanent flows and uniform traffic in all areas of the shopping mall. CAGR: Compound annual growth rate. CAPEX: Capital Expenditure. Estimate of the amount of funds to be spent on the development, expansion, improvement or acquisition of an asset. CCI: Real estate credit notes. CRI: Real estate receivables notes. CPC: Accounting Pronouncements Committee. GCA (Gross Commercial Area): Equivalent to the sum of all the commercial areas of the shopping malls (i.e. GLA plus store areas sold). EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Net revenue operating costs and expenses + depreciation and amortization. Federal Law 11,638: on December 28, 2007, Federal Law 11,638 was enacted with the purpose of including publicly-held companies in the international accounting convergence process. Consequently, certain financial and operating results were subject to accounting effects due to the changes introduced by the new law. FIIVPS: Fundo de Investimento Imobiliário Via Parque Shopping, a real estate investment fund. GLA (Gross Leasable Area): Equivalent to the sum of all areas available for leasing in shopping malls, except for kiosks and sold areas. Greenfield: development of new shopping mall projects. Management fee: fee charged to tenants and other partners of the mall to defray management costs. Mega Stores: medium-sized stores (between 500 and 1000 sqm), which frequently have special marketing and structural features on a lesser scale than the anchors, but which still attract and retain customers. They are also known as mini-anchors. Minimum Rent: The minimum rent of a tenant s leasing agreement. Key Money: Amount charged to tenant for the right to use the project s technical infrastructure, applicable to contracts with terms longer than 60 months. Net Key Money: Key money net of leasing costs.

20 Net Late Payments: The ratio between total billed amount during the period and total revenue received for the same period, calculated 15 days after the end of the period. NOI (Net Operating Income): gross mall revenue (excluding revenue from services) + parking result - mall operating costs - provision for doubtful accounts. MBS: Mortgage-backed securities. Occupancy Cost: The leasing cost of a store as percentage of sales: rent (minimum + percentage) + common charges + marketing fund. Occupancy Rate: total mall GLA divided by the area leased at the end of the period in question. Owned GLA: Refers to total GLA weighted by Aliansce s interest in each shopping mall. PDA: Provision for Doubtful Accounts. Sales: Reported product and service sales of stores in each of the shopping malls during the period, including kiosk sales. This includes 100% of each mall s sales, regardless of Aliansce s stake. Sales/sqm: Sales divided by the sales reporting area in the period. This does not include kiosk sales, since such operations are not covered in the malls total GLA. This figure considers Aliansce s stake in each mall. Satellite Stores: small stores (less than 500 sqm) with no special marketing and structural features located around the Anchor Stores and intended for general retailing. SAR (Same-area rent): ratio between the rent earned in a same store in current versus the previous year. This figure considers Aliansce s stake in all malls, except for Shopping Santa Úrsula. SAS (Same-area sales): Ratio between sales in the same area in the current versus the previous year. This figure considers Aliansce s stake in all malls, except for Shopping Santa Úrsula. SSR (Same-store rent): ratio between the rent earned in the same store in the current versus the previous year. This figure considers Aliansce s stake in all malls, except for Shopping Santa Úrsula. SSS (Same-store sales): ratio between sales in the same store in the current versus the previous year. This figure considers Aliansce s stake in all malls, except for Shopping Santa Úrsula. Tenant Mix: strategic composition of stores defined by the malls manager. Vacancy: the mall s gross leasable area available for rent.

21 Appendices Reconciliation of the consolidated and managerial financial statements As of January 1, 2013, the Company adopted technical pronouncement CPC 19 (R2) Joint Arrangements, which determines that the projects that a company controls jointly with one or more parties must be characterized as Joint Arrangements or Joint Venture and must be classified under one of these categories. In addition, on the same date, the Company adopted technical pronouncement CPC 18 (R2) Investment in subsidiaries and associated companies - and now fully consolidates the Via Parque Shopping Real Estate Investment Fund and Parque Shopping Belém. However, for managerial financial information purposes, we have considered Aliansce s proportional interest in jointly owned subsidiaries, as shown below: Income Statements - Shoppings Financial Statements 2Q14 Financial Statements 2Q15 Managerial Statements 2Q15 Boulevard Shopping Brasília Equity Income Equity Income 50.00% Parque Shopping Maceió Equity Income Equity Income 50.00% Shopping Grande Rio Equity Income Equity Income 25.00% Shopping Santa Úrsula Equity Income Equity Income 37.50% Parque Shopping Belém % % 50.00% Via Parque Shopping % % 73.91% Santana Parque Shopping 50.00% Equity Income 33.40% Finally, the managerial financial statements were prepared based on the balance sheets, income statements and financial reports of the respective companies and projects, as well as assumptions deemed reasonable by the Company's Management, which should be read in conjunction with the period s financial statements and respective notes. We present below the reconciliation of accounting versus managerial financial statements for the periods ended June 30, 2014 and 2015:

22 Reconciliation of the consolidated accounting and managerial financial statements 2014 Conciliation between managerial financial information vs financial statements Period ended June 30, 2014 Aliansce Consolidated Financial Statements Minorities Via Parque Consolidation / Adjustment Cross off (amounts in thousands of reais) Aliansce Consolidated Managerial Gross revenue from rental and services 253,900 (5,076) 12, ,221 Taxes and contributions and other deductions (20,132) 48 (702) (20,787) Net revenues 233,767 (5,028) 11, ,434 Cost of rentals and services (70,395) 1,432 (5,120) (74,083) Gross income 163,372 (3,596) 6, ,351 Operating income/expenses (9,214) (10) (8,869) (18,093) Administrative and general expenses (30,466) 8 (40) (30,498) Equity Income 9,019 - (9,019) - Depreciation and Amortization (1,543) - 5 (1,538) Other operating income/(expenses) 13,776 (18) ,943 Financial income/(expenses) (108,232) (152) 2,457 (105,927) Net income before taxes and minority interest 45,926 (3,758) ,332 Income and social contribution taxes (11,993) (109) (208) (12,310) Net income for the period 33,934 (3,867) (45) 30,022 Income attributable to: Controlling Shareholders 28, ,332 Minority Shareholders 5,601 (3,867) (45) 1,690 Net income for the period 33,934 (3,867) (45) 30,022 Conciliation between EBITDA / Adjusted EBITDA Period ended June 30, 2014 Aliansce Consolidated Financial Statements Minorities Via Parque Consolidation / Adjustment Cross off (amounts in thousands of reais, except percentages) Aliansce Consolidated Managerial Net income 33,934 (3,867) (45) 30,022 (+) Depreciation and amortization 31,723 (333) 6,531 37,921 (+)/(-) Financial expenses / (income) 108, (2,457) 105,927 (+) Income and social contribution taxes 11, ,310 (+) Amortização de ágio EBITDA 185,881 (3,939) 4, ,180 EBITDA MARGIN % 79.5% 77.4% (+)/(-) Non-recurring (expenses)/income (15,957) (15,451) ADJUSTED EBITDA 169,924 (3,939) 4, ,729 ADJUSTED EBITDA MARGIN % 72.7% 71.0% Conciliation between FFO / Adjusted FFO Period ended June 30, 2014 Net income - Controlling Shareholder 28, ,332 (+) Depretiation and amortization 31,723 (1,474) 6,531 36,780 (=) FFO * 60, ,531 65,112 FFO MARGIN % 25.7% 28.4% (+)/(-) Non recurring expenses (15,957) (15,451) (-) Straight line rent adjustments - CPC 06 (5,181) 381 (5,151) (+) Stock Options 2, ,348 (+)/(-) Non-cash taxes 3,933 (987) (863) 2,083 (-) CPC 20 - Capitalized Interest (1,619) - - (1,619) (+) SWAP (=) Adjusted FFO * 44,366 (2,080) 5,824 48,110 AFFO MARGIN % 19.0% 21.0% * Non-accounting indicators Aliansce Consolidated Financial Statements Minority Interest Consolidation / Adjustment Cross off (amounts in thousands of reais, except percentages) Aliansce Consolidated Managerial

23 Reconciliation of the consolidated accounting and managerial financial statements 2015 Conciliation between managerial financial information vs financial statements Period ended June 30, 2015 Aliansce Consolidated Financial Statements Minorities Via Parque Consolidation / Adjustment Cross off (amounts in thousands of reais) Aliansce Consolidated Managerial Gross revenue from rental and services 258,622 (4,233) 19, ,639 Taxes and contributions and other deductions (21,951) 253 (1,232) (22,931) Net revenues 236,671 (3,980) 18, ,709 Cost of rentals and services (70,183) 1,161 (5,008) (74,030) Gross income 166,488 (2,819) 13, ,679 Operating income/expenses (30,012) (19) (12,764) (42,794) Administrative and general expenses (32,194) 5 (104) (32,294) Equity Income 12,207 - (12,207) - Depreciation and Amortization (1,876) - 7 (1,870) Other operating income/(expenses) (8,148) (23) (460) (8,631) Financial income/(expenses) (107,824) (98) 3,247 (104,676) Net income before taxes and minority interest 28,652 (2,936) 3,493 29,209 Income and social contribution taxes (13,267) (163) (3,495) (16,925) Net income for the period 15,386 (3,099) (2) 12,284 Income attributable to: Controlling Shareholders 9,076 (3,099) 3,100 9,076 Minority Shareholders 6,310 - (3,102) 3,208 Net income for the period 15,386 (3,099) (2) 12,284 Conciliation between EBITDA / Adjusted EBITDA Period ended June 30, 2015 Aliansce Consolidated Financial Statements Minorities Via Parque Consolidation / Adjustment Cross off (amounts in thousands of reais, except percentages) Aliansce Consolidated Managerial Net income 15,386 (3,099) (2) 12,284 (+) Depreciation and amortization 34, ,161 35,943 (+)/(-) Financial expenses / (income) 107, (3,247) 104,676 (+) Income and social contribution taxes 13, ,495 16,925 EBITDA 170,767 (2,346) 1, ,828 EBITDA MARGIN % 72.2% 67.7% (+)/(-) Non-recurring (expenses)/income 6, ,917 (+) Pre-operational expenses (+)/(-) Others 6, ,430 ADJUSTED EBITDA 177,624 (2,346) 1, ,745 ADJUSTED EBITDA MARGIN % 75.1% 70.5% Conciliation between FFO / Adjusted FFO Period ended June 30, 2015 Aliansce Consolidated Financial Statements Minority Interest Consolidation / Adjustment Cross off (amounts in thousands of reais, except percentages) Aliansce Consolidated Managerial Net income - Controlling Shareholder 9,076 (3,099) 3,099 9,076 (+) Depretiation and amortization 34,291 (932) 1,161 34,519 (=) FFO * 43,366 (4,032) 4,260 43,595 FFO MARGIN % 18.3% 18.1% (+)/(-) Non recurring expenses 6, ,917 (-) Straight line rent adjustments - CPC 06 (4,307) 254 (582) (4,635) (+) Stock Options 2, ,152 (+)/(-) Non-cash taxes 188 (646) 1, (-) CPC 20 - Capitalized Interest (2,783) - - (2,783) (+) SWAP (=) Adjusted FFO * 46,101 (4,423) 5,070 46,747 AFFO MARGIN % 19.5% 19.5% * Non-accounting indicators