May Discussion Material

Transcription

1 Discussion Material May, 2018

2 May, 2018 Disclaimer This presentation is only indicative of the Company's intention to develop the mentioned projects. The images presented are merely illustrative, and the projects could be modified in whole or in part, at Multiplan's discretion. Many factors and assumptions that establish the feasibility of these projects are not in the control or expectation of the Company. The reader/investor should not rely solely on the information herein to make decisions with respect to trading the securities issued by Multiplan. The document may also 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 Company s future financial situation, operating results, market share and competitive position may differ substantially from those expressed or suggested by forward-looking statements. Many factors and values that may impact these results are beyond the company s ability to control. Future projects 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. These projects may be altered in part or totally by the company with no prior warning. For more detailed information, please check our Financial Statements, Reference Form (Formulário de Referência) and other relevant information on our investor relations website ir.multiplan.com.br.

3 Growth

4 Future Growth A seasoned Company with a proven tack record......in spite of the storm October, 2017 Multiplan's GLA growth over the years ('000 sq.m) 4

5 We believe developing generates more value Future Growth October, 2017 Development Acquisition No investment Short Term Result Risk Long Term Result Value Generated 5

6 We think on the long term and anticipate opportunities ParkShopping Canoas (2017) Park Jacarepaguá¹ (2019) 48,000 sq.m. of GLA, 93% leased 258 stores and 2,600 parking spaces Modern and sustainable architecture Opened in November stores opened with the shopping center 45,000 vehicles in its first weekend 1. Artist s rendering for illustrative purposes only Project subject to changes without previous notice. 39,000 sq.m. of GLA +230 stores, 15 anchor and mega store 2,100 parking spaces Incorporates all inovations of ParkShopping Canoas and new trends Expected to open in December

7 Myths and truths about malls sector Q: There are no growth opportunities in Brazil A: There are opportunities to grow through developments and acquisitions: - Top 5 public companies own only 18% of Brazilian GLA - Multiplan owns only 19 malls and works on new greenfields and brownfields - Mall sales represented 20%¹ of total retail sales Q: There are many cities without Shopping Centers in Brazil Q: There is potential for building a Shopping Center in every city Q: Brazil is overpenetrated A: Only 3.8%¹ of Brazilian municipalities (or 212 cities) have malls, but only 5.6%³ of Brazilian municipalities (or 310 cities) have more than 100,000 inhabitants A: GLA per 1,000 inhabitants ratio¹ ² 75 m² 150 m² 2,191 m² 359 m² Q: Cities are expected to grow less in the future A: Cities are expected to grow less, but should still expand due to internal growth vectors SP RJ ³ +9.3% +4.5% ³ +7.4% +4.2% 1 Source: Abrasce Associação Brasileira de Shopping Centers (2017) 2 Source: ICSC International Council of Shopping Centers (ICSC) 3 Source: IBGE Brazilian Statistics Bureau 7

8 Location, Location, Location + Quality, Quality, Quality Multiplan vs Brazil average (2017) Multiplan s share in Brazil (2017) GDP per capita (Exposure to States) R$19,901 R$25, % 11 cities Number of municipalities 5,570 cities Exposure to A/B classes 84% 3.2% Number of malls 64% 19 malls 571 malls Average GLA by mall 27,285 m² Total sales (R$/sq.m.) R$/m² m² R$/m² 5.3% 833,165 m² R$14.7 billion 8.7% GLA (sq.m.) 15,580,379 m² Shopping center sales (R$) R$167.7 billion Source: Multiplan, Abrasce and IBGE 8

9 E-commerce

10 Why people go to shopping centers in Brazil? Paying bills 3% Others 18% Shopping 28% Mall visitor profile in Brazil Movie theater 3% 68% Meetings 4% Spending free time 14% Eating 15% Services 15% Go weekly Source: Abrasce (2016) 10

11 Innovative technologies adding value to the in-store shopping experience E-commerce Convenience Assortment of products Decision-making: online reviews Bargain hunting: find the best possible price Useful functions: manage shopping lists and set up shopping baskets over time Omni-channel is Present the future Online purchase with in-store pickups, returns and upsale Internet retailers expanding their physical footprint Shopping centers convenience In-store Experience, touch and feel Fill an immediate need or desire Provide a one-stop shopping trip Better for expensive shipping goods Fresh products People interactions Source: Multiplan The consumer does not care where a sale is booked, but demands excelent incentivised service at all stages of the shopping experience. 1 1 Source: ICSC International Council of Shopping Centers (ICSC) Exploring New Leasing Models in a Omni-Channel World (2016) 11

12 We own and manage a high productive portfolio Tenants sales: Multiplan & USA malls Tenants sales USD/sq.f. ³ (satellite stores only) Location, location, location: we are well positioned inside the largest cities; 2. Consumer experience: Food + Service segments represented 35.1% of Multiplan s GLA, equal to Apparel; 3. Mixed-use: integrate other types of real estate with malls, generating synergies; 4. Organic growth: 46 mall expansions delivered in 44 years; USA malls¹ Multiplan's malls Tenants sales: Multiplan & Brazilian malls Tenants sales USD/sq.f.³ (anchor + satellite stores) Innovation: constant mix change antecipating consumers need and trendspotting; 6. Efficiency: High productivity, low tenant concentration. Multiplan (2017) Store Segment GLA Distribution USA (2017) ¹ Brazilian malls² Multiplan's malls 1 Source: ICSC International Council of Shopping Centers 2 Source: Abrasce Associação Brasileira de Shopping Centers. 3 Source: Bloomberg final Exchange rate of R$3.1921/ US$. 12

13 MULT3 Valuation

14 Valuation Analysis Jul 26, LTM NOI 3 of R$205 mn R$25.00/share 252,147 sq.m. of owned GLA LTM NOI 1, stock price and owned GLA evolution 1 since IPO NOI: +420% Owned GLA: +155% Share Price: +145% May 8, 2018 LTM NOI 4 of R$1,064 mn R$61.20/share 642,350 sq.m. of owned GLA 520 NOI Share Price Owned GLA Jul-07 May-08 Mar-09 Jan-10 Oct-10 Aug-11 Jun-12 Apr-13 Feb-14 Nov-14 Sep-15 Jul-16 May-17 Mar-18 Source: Multiplan and Bloomberg as of May 8 th, (1) Considers the 90 days moving average of LTM NOI and owned GLA. (2) July 26 th, 2007 was the Multiplan s IPO date. (3) NOI from Oct-06 to Sep-07. (4) NOI from Apr-17 to Mar

15 Valuation Analysis 140 Base 100 as of March 31 st, 2017, ending on May 8 th, 2018 ¹ NTN-B 2024 (Unit Price) MULT3 Stock Price FFO LTM Mar-17 May-17 Jun-17 Jul-17 Sep-17 Oct-17 Nov-17 Jan-18 Feb-18 Mar-18 May-18 Source: Tesouro Nacional website, Multiplan and Bloomberg ¹ Initial data on March 31 st, 2017: NTN-B 2024 (Price Unit): R$2,035; MULT3 Stock Price: R$66.30; FFO LTM: R$462.3 M. Final data on May 8 th, 2018: NTN-B 2024 (Price Unit): R$2,299; MULT3 Stock Price: R$61.20 ; FFO LTM: R$612.8 M.

16 Valuation Analysis 5-year histogram of quarterly yield figures NTN-B 2024 Yield (Gov. Bond) FFO Yield NOI Yield Recent (May 8, 2018) Recent (May 8, 2018) Recent (May 8, 2018) %- 4.5% 4.6% 4.7%- 5.5% 5.6%- 6.2% 6.2%- 6.8% 6.8%- 7.4% 3.5%- 4.3% 4.3%- 4.9% 5.0% 5.1%- 5.8% 5.8%- 6.5% 6.5%- 7.4% 5.3%- 6.3% 6.3%- 7.4% 7.5% 7.6%- 8.3% 8.3%- 9.3% 9.3%- 10.3% Source: Tesouro Nacional website, Multiplan and Bloomberg

17 Results

18 Highlights The first quarter of 2018 showed evidence of a continued operating recovery through strong portfolio productivity, while the Company s financial indicators also presented significant evolution. Tenants Sales +7.2% 3.2 B 3.4 B Net Operating Income (NOI) R $ +7.9% 271 M 251 M Occupancy Rate 97.3% EMPTY FULL Average Sales increased for the 44 th quarter in a row, and were equal to 787 USD/sq.f.¹. The NOI margin reached 90.3% in the quarter, up 162 b.p. over. Excluding the areas delivered in 2017, the occupancy rate would reach 97.7%. EBITDA +24.2% FFO 233 M 187 M +58.6% 147 M 93 M Net Income +80.8% 98 M 54 M R$ The EBITDA margin increased 1,242 b.p. to 79.6% in. The FFO margin grew to 50.3% in, 1,705 b.p. over. The Net Income margin reached 33.6% in the quarter, growing 1,412 b.p. over. ¹ Considers satellite stores sales, and the 12-month average exchange rate of R$3.2166, from April to March 31, 2018 (Bloomberg).

19 Operational Indicators Tenants sales Same Area / Same Store Sales SAS and SSS growth and turnover 2.7 B 2.9 B CAGR: +5.9% 3.0 B 3.2 B +7.2% 3.4 B 9.3% 5.7% 3.3% 5.6% 4.2% 8.3% 2.9% 3.3% Turnover of 4.3% 3.2% 2.9% 38,297 sq.m. 1.6% Mix of GLA in Mar-18 Improvement (5.0% of total GLA) 1Q14 1Q15 1Q16 1Q14 1Q15 1Q16 1Q14 1Q15 1Q16 Occupancy rate 97.3% 12.9% 12.7% 12.6% 14.0% Occupancy cost 5.3% 5.3% 4.9% 5.3% 5.2% 5.2% -39 b.p. 13.6% Same Area Sales 13.1% 12.9% 12.8% 7.6% 7.5% 5.8% 7.6% 7.8% 5.7% 7.7% 7.6% Gross and net delinquency rates 1.3% 2.7% EMPTY FULL 8.2% 7.9% 0.9% 2.4% year average 4Q16 2Q17 3Q17 4Q17 Average Rent as sales % Other as sales % 2.4% Same Store Sales 3.0% 3.0% 3.0% 2.7% 2.8% Gross Delinquency Rate Net Delinquency Rate 3.5% 2.5% 2.2% 1.1% 19

20 Gross Revenue and Property Ownership Results Gross revenue Rental revenue Parking revenue 3.8% M M Services 7.4% Others 2.1% Parking 15.7% 1 Rental 74.9% M Merchand. 5.5% 5.3% Overage 2.5% Base rent 69.1% M 45.8 M 9.8% 50.3 M Same Store Rent SSR Real SSR Growth: -1.7% 7.5% 5.8% 6.0% -3.3% -2.2% -2.4% 9.3% 8.4% 8.1% 1Q16 2Q16 3Q16 4Q16 2Q17 3Q17 4Q17 Same Store Rent (SSR) growth (y/y) x% IGP-DI inflation adjustments on contracts (y/y) x% SSR real growth/decline (y/y) -1.0% 10.8% 10.7% 9.8% 8.7% 0.5% 1.3% 2.0% 2.5% 8.6% 8.1% 6.7% 5.3% Real SSR recovery 4.8% 2.8% 3.6% 1.1% ¹ Others includes key money, real estate for sale, straight-line effect and other revenues 20

21 Operating and Financial Results Evolution of G&A and as % of net revenue 31.8 M -4.0% 30.5 M 11.4% 10.5% Share-based compensations and stock price (R$) 26.1 M 26.1 M M 24.5 M 24.5 M (9.1 M) 1T17 2T17 3T17 4T17 (9.1 M) 1T18 Remuneração 2Q17 3Q17 baseada 4Q17 em ações Share-based compensations (1.7 M) (1.7 M) Stock price Shopping center expenses and as % os shopping center revenues M 11.8% -9.7% 28.0 M 10.2% Net Operating Income NOI and margin CAGR: +10.8% 8.0% M 88.6% 7.9% M 90.3% M 84.6% 1,065.2 M M M M 88.1% 88.8% 86.8% 88.0% ¹ Mall rental and parking revenues Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 21

22 Operating and Financial Results EBITDA and margin (%) Net income and margin (%) FFO and margin (%) M 67.2% 24.2% M 79.6% 54.3 M 19.5% 80.8% 98.1 M 33.6% 92.7 M 33.2% 58.6% M 50.3% Operational margins Financial margins ,228 sq.m. 723,228 sq.m. 84.6% 88.0% Owned GLA growth: 14.1% 44.7% 51.5% 73.1% 34.7% 64.0% 633,646 sq.m. 29.3% 633,646 sq.m. Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Owned GLA NOI Margin EBITDA Margin Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Owned GLA FFO Margin Net Income Margin 22

23 Debt and Cash Evolution of Net Debt to EBITDA Financial expenses and coverage ratio 5.04x 4.00x 3.00x Lowest Covenant 4.00x M M M M 4.13x M 2.00x 2.39x 2.40x 2.35x 2.34x 2.33x 1.00x Mar-17 Jun-17 Sep-17 Dec-17 Mar x 3.55x 3.62x Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Lowest Covenant 2.00x Net Financial Expenses EBITDA / Net Financial Expenses Debt Indexes on March 31, 2018 Weighted average cost of funding (% p.a.) Others 2.1% TR 34.9% CDI 63.0% 13.75% 14.25% 14.25% 14.25% 14.25% 14.25% 13.75% 12.75% 12.25% 11.53% 12.29% 12.81% 13.09% 13.22% 13.23% 13.50% 13.18% 12.18% 10.61% 9.18% 10.25% 8.24% 8.25% 7.79% 7.00% 6.50% Mar-15 jun/15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Cost of Funding (gross debt) Selic Rate 23

24 Debt and Cash Multiplan s debt amortization schedule on March 31, 2018 Cash (Mar-18) FFO M 89 M 26 M 26 M 26 M 26 M 26 M 7 M 294 M 394 M 504 M 437 M 413 M 421 M 613 M 776 M 1 Debt amortization schedule from Apr-18 to Dec

25 IR Contact Armando d Almeida Neto CFO and IRO Hans Melchers Investor Relations and Planning Director Franco Carrion Investor Relations Manager Leandro Vignero Investor Relations Analyst Nathalia Boiseaux Investor Relations Analyst Tel.: +55 (21) Fax: +55 (21) ri@multiplan.com.br ir.multiplan.com.br 25