march 2014 institutional presentation

8/20/2019 March 2014 Institutional Presentation

1/23

Aliansce Investor Presentation2014


2/23

Indicates Aliansce’s presence

New Generation Assets (Malls with less than 5 years of operating history)

Boulevard ShoppingBelém

Boulevard ShoppingBelo Horizonte

Boulevard ShoppingCampos

Parque ShoppingBelém

Boulevard ShoppingVila Velha

Boulevard ShoppingNações Bauru

Parque ShoppingMaceió

ShoppingSanta Úrsula

Boulevard ShoppingBrasília

Shopping Parangaba

Continental Shopping

Third Party Malls (Managed by Aliansce)

Shopping Leblon Shopping Jequitibá ShoppingPark Lagos

Boulevard ShoppingFeira de Santana

ShoppingPark Europeu

Boulevard ShoppingVitória da Conquista*

Passeio Shopping Santa Cruz Shopping Moinhos Shopping FloripaShopping

Aliansce owns an extensive and balanced portfolio of shopping malls, totaling 445.3 thousand sqmof owned GLA

Portfolio Overview

2*UnderDevelopment

Boulevard Shopping São

Gonçalo

PátioAlcântara

Caxias Shopping

Mature Assets (Malls with more than 5 years of operating history)

Shopping Taboão Via ParqueShopping

ShoppingGrande Rio

Carioca Shopping ShoppingWest Plaza

Bangu Shopping Santana ParqueShopping

Shopping IguatemiSalvador

Caxias Shopping


3/23

Extensive governance with an average ownership of approximately 65.9% of its consolidated portfolio

Portfolio Overview

3

Portfolio em Operação Estado % AliansceABL

(m²)

ABL Própria

(m²)

Taxa de

Ocupação

Prestação de

ServiçosAtivos Mature - Mais de 5 anos de histórico operacional 68.87% 366,581 252,482 99.2%

Shopping Iguatemi Salvador BA 70.78% 64,695 45,795 99.8% A / C

Shopping Taboão SP 78.00% 36,667 28,600 100.0% A / C / CSC

Via Parque Shopping RJ 72.87% 56,471 41,150 99.6% A / C / CSC

Shopping Grande Rio RJ 25.00% 36,771 9,193 99.6% A / C / CSC

Carioca Shopping RJ 100.00% 23,805 23,805 99.1% A / C / CSC

Shopping West Plaza SP 25.00% 33,671 8,418 97.7% A / C / CSC

Bangu Shopping RJ 100.00% 53,025 53,025 99.7% A / C / CSC

Santana Parque Shopping SP 50.00% 26,523 13,261 97.6% A / C

Caxias Shopping RJ 89.00% 25,558 22,747 98.3% A / C / CSC

Lojas C&A n/a 69.05% 9,395 6,488 100.0% n/a

Nova Geração de Ativos - Menos de 5 anos de histórico operacional 62.42% 308,950 192,844 94.9%

Shopping Santa Úrsula SP 37.50% 23,057 8,646 95.9% -

Boulevard Shopping Brasíl ia DF 50.00% 17,002 8,501 96.2% A / C / CSC

Boulevard Shopping Belém PA 75.00% 39,441 29,580 94.0% A / C / CSC

Boulevard Shopping Belo Horizonte MG 70.00% 43,016 30,111 95.3% A / C / CSC

Boulevard Shopping Campos RJ 100.00% 24,762 24,762 94.7% A / C / CSCParque Shopping Belém PA 50.00% 31,028 15,514 97.1% A / C / CSC

Boulevard Shopping Vila Velha ES 50.00% 33,600 16,800 94.8% A / C / CSC

Boulevard Shopping Nações Bauru SP 100.00% 27,256 27,256 95.6% A / C / CSC

Parque Shopping Maceió AL 50.00% 37,580 18,790 95.1% A / C / CSC

Shopping Parangaba CE 40.00% 32,208 12,883 91.6% A / C / CSC

Total do Portfolio 65.92% 675,531 445,326 97.3%

(A) Admini stração | (C) Comercial izaçã o | (CSC) Central de Serviços


4/23

Portfolio Overview

Owned GLA Evolution (sqm - thousand)

159182

55 80

226

264277

400

2005 2006 2007 2008 2009 2010 2011 2012 2013

444

CAGR05-13:+29.8%


5/23

Total GLA Developed in the last 8 years

Most active mall developer in Brazil

14 shopping centers developed in less than 8 years

(1) Since IPO (2011)

Average Age of Malls (GLA Weighted)

Leading Developer

5

413.8

276.3 275.0

165.1

217.9

BR Malls Multiplan Iguatemi Sonae Sierra

1.5x 2.5x 1.9x1.5x

(1)

10.6

16.0

15.3

17.9

8.3

BR Malls Multiplan Iguatemi Sonae Sierra

of GLA isless than 5y old

43.9%


6/23

Owned GLA growth (sqm) Capital Expenditure until 2016

Owned GLA growth of 7.8% by year-end 2015

Growth Drivers

6

445,326

480,24319,380

15,538

Actual 2014E 2015E End of 2015

Expansions

7.8%

CAPEX to Complete 2014E 2015E 2016E TOTAL

(Amounts in millions of Reais)

Expansions 113.8 85.5 0.0 199.2

Greenfields¹ 22.9 0.0 0.0 22.9

Key money / Land swap² -24.1 -27.8 -7.0 -58.8

Total 112.6 57.7 -7.0 163.3

² Monetization of excess l and

1 Expenses for the conclusion of recently opened projects. This value includes R$6.5 million

referring to Parangaba's Obligations for Future Assets.


7/23

Expansions

7

7 expansions in malls with an average occupancy rate of 98.6%

Bangu Shopping 1Q14-2Q15 2,805 100.0% 2,805

Shopping Nações Bauru 3Q14 7,375 100.0% 7,375

Carioca Shopping 4Q14 9,200 100.0% 9,200

Caxias Shopping 1Q15 7,672 89.0% 6,828

Shopping West Plaza 2Q15 3,175 25.0% 794

Iguatemi Salvador 2Q15 8,500 70.7% 6,009

Caxias Shopping II 2Q15 2,143 89.0% 1,907

Total 40,870 34,918

% Aliansce Owned GLA (sqm)Future Expansions Opening GLA (sq.m.)

34.9 thousand sqm of owned GLA with expected opening until the end of 2015


8/23

Case Study: Upside Potential of Younger Assets

ShoppingCenters

% AliansceInitial

Opening GLA (sqm)Owned GLA

(sqm)

Bangu 70.0% Oct-07 43,975 30,783

Santana 50.0% Oct-07 21,962 10,981

Caxias 40.0% Nov-08 25,601 10,241

Brasília 50.0% Jun-09 16,925 8,462

Boulevard Belém 75.0% Nov-09 34,117 25,588

Cap Rate(1) NOI (R$ mm)(2)

11.7%

14.5%

16.5%

1st Year 2nd Year 3rd Year

44.3

61.9

71.485.4%

88.9%90.0%

1st Year 2nd Year 3rd Year

NOI (R$ mm) NOI Margin

(1) Sum of the operating results of each year of the five shopping centers, divided by the sum of investments. Does not include expansions.(2) Sum of the operating results of the five shopping centers

Current IRR: 19.1%

Focus on New Generation Assets

8

Approximately 44.0% of owned GLA has less than 5 years of operating history and has not stabilized


9/23

Available construction potential for mix-use projects and future expansions in 14 of the 19 assets of the portfolio

Main objective for mix-use projects is to monetize the construction potential, i.e. air rights

Four Mix-use projects developed in 4 years

Excess Land

9

Portfolio has 808 thousand sqm of GLA to be monetized or for expansions

Carioca Shopping – Office Tower and Façade Caxias Shopping – Office Tower and Hotel


10/23

Occupancy Cost Occupancy Rate with Openings

Same Store Sales Growth (%)

Operating Highlights: Internal Growth

10

10.2%

9.3%

13.4%

9.2%

10.9%

8.9%

10.4%

8.7%

10.7%

8.7%

1 Q 0 9

4 Q 0 9

1 Q 1 0

4 Q 1 0

1 Q 1 1

4 Q 1 1

1 Q 1 2

4 Q 1 2

1 Q 1 3

4 Q 1 3

97.3%

95.7%

98.0%

98.1% 98.0%

98.2%

97.2% 97.1%

3 Q 0 9

4 Q 0 9

1 Q 1 0

1 Q 1 1

1 Q 1 2

1 Q 1 3

3 Q 1 3

4 Q 1 3

Blvd. Brasília

Blvd. Belém

Blvd.

Belo Horizonte

Blvd.Campos

Parque Belém

Blvd. Vila Velha

Blvd. Bauru

Pq. Shop. Maceió

Shop. Parangaba

16.4%

10.0%

14.9%

14.9%

10.2%12.9%

11.1% 11.1%12.4%

10.1% 10.4%11.9%

10.7%8,6% 10,1% 9.3%

8.0%7.7%

8.1%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Aliansce BR Malls Multiplan Iguatemi


11/23

SSS spread over SSR growth (p.p.)

11

Leading ratio of SSS over SSR in the sector for at least 10 quarters

Half of the portfolio will complete first 5th year renewal in the next five years

Strong sales growth will generate higher Leasing Spreads

High Potential for significant Lease Spreads


-0.3p.p.0.7p.p.

-1.2p.p. -2.2p.p.

1.6p.p. 1.2p.p. 1.8p.p. 1.8p.p.

-0.8p.p.

-1.5p.p.

-1.2p.p.

-1.3p.p.

-10 p.p.

-8 p.p.

-6 p.p.

-4 p.p.

-2 p.p.

0 p.p.

2 p.p.

4 p.p.

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Aliansce BR Malls Multiplan Iguatemi


12/23

Highest SSS of the sector in Brazil for the last 13 quarters

At least one mall will complete five years of operating history in each of the next six years

Occupancy cost of 8.7% in 4Q13

Percentage of Minimum Rent Revenues being renewed per year:

High Potential for significant Lease Spreads

12


SSS Average for the

past 2 years(1) 2014 2015 2016 2017 2018

Bangu 13.1% 9.1% 12.6% 3.6% 48.0% 15.3%

Blvd. Belém 13.1% 19.2% 36.1% 7.7% 9.4% 7.5%

Belo Horizonte 17.2% 5.9% 43.9% 9.0% 2.4% 9.2%

Brasília 10.3% 19.7% 12.4% 17.1% 7.2% 6.0%

Campos 24.2% 14.8% 0.9% 29.7% 3.2% 19.3%

Carioca 7.6% 15.4% 11.4% 32.6% 19.9% 16.3%

Caxias 13.9% 16.3% 5.0% 4.5% 5.5% 65.0%

Grande Rio 10.6% 13.5% 14.7% 20.6% 14.8% 28.1%

Iguatemi Salvador 7.1% 13.2% 15.8% 21.6% 20.3% 17.9%

Parque Belém 26.7% 2.5% 0.0% 0.0% 54.9% 7.0%Santana 8.2% 10.0% 6.1% 5.7% 58.5% 14.5%

Taboão 9.6% 6.6% 8.3% 9.3% 29.0% 28.0%

Via Parque 13.6% 10.7% 8.8% 28.3% 10.5% 21.8%

Bauru 30.7% 7.8% 3.1% 0.7% 44.4% 17.4%

Vila Velha 10.7% 7.1% 1.4% 3.1% 35.6% 10.5%

West Plaza N/A 18.8% 20.9% 13.0% 12.5% 18.5%

Maceió N/A 2.3% 0.1% 0.4% 0.0% 49.9%

Parangaba N/A 7.0% 0.5% 0.0% 0.0% 47.0%

TOTAL 11.8% 14.1% 13.8% 20.5% 21.8%(1) Except:

Parque B elém - Since o pening in 2Q12

Bauru and Vila Velha - Since o pening in 4Q12

HIGHLIGHT = First 5th year renew als


13/23

Fortress Malls positioned with the Emerging Middle Class

Aliansce has seven fortress malls positioned with the Emerging Middle Class: (Shopping Taboão, Shopping GrandeRio, Carioca Shopping, Bangu Shopping, Caxias Shopping, Parque Shopping Belém and Shopping Parangaba)

These malls in terms of Aliansce’s Gross Revenues and Owned GLA represented 33.3% and 38.6%, respectively, in

2013

Parque Shopping Belém Shopping Grande Rio

Operating Highlights

13

3Q13 4Q13

Aliansce Middle Income Aliansce Middle Income

Same Store Sales 10.1% 10.7% 0.6 p.p 9.3% 10.4% 1.2 p.p

Same Store Rent 11.3% 13.2% 1.9 p.p 10.6% 9.9% -0.7 p.p

Occupancy Rate 97.3% 99.1% 1.8 p.p 97.2% 98.1% 0.9 p.p

Occupancy Cost 9.7% 8.8% -1.0 p.p 8.7% 7.7% -1.0 p.p

Late Payments 1.9% 1.8% -0.2 p.p 1.7% 2.8% 1.1 p.p

Main Indicators


14/23

Gross Revenue 4Q13:R$143.0 million

Net Revenue (R$ million) Gross Revenue Breakdown (%) – 4Q13

Financial Highlights

14

208

272

357

451

106130

2010 2011 2012 2013 4Q12 4Q13

CAGR10-13:+29.5%

Growth:+23.6%

Key Money3.6%

Parking15.2%

Transfer Fee0.5%

Servicesrendered

7.8%

Minimum rent78.9%

Percentagerent

11.8%Stands /Kiosks9.3%

Rent73.0%


15/23

Capital Expenditure (R$ million) Adjusted FFO (2) (R$ million)

NOI (R$ million) Adjusted EBITDA(1) (R$ million) and EBITDA Margin(1) (%)

(1) Excludes non-recurring expenses(2) Excludes non-recurring items and non-cash items

Financial Highlights

15

138

190

253

325

7596

67% 70% 71%72% 71% 73%

2010 2011 2012 2013 4Q12 4Q13

CAGR10-13:+32.7% Growth:

+27.0%

372

215

1.148

602

19591

2010 2011 2012 2013 4Q12 4Q13

125

156 148

212

3655

2010 2011 2012 2013 4Q12 4Q13

CAGR10-13:+19.4%

Growth:+54.3%

167

229

307

389

93113

2010 2011 2012 2013 4Q12 4Q13

CAGR10-13:+32.5%

Growth:+21.4%


16/23

Net Debt (R$ million)(1)

Principal Amortization Schedule (R$ million)Breakdown Debt Indexes (%)

(1) As of December 2013(2) Including proceeds from the sale of BH Commercial Tower and excluding Capex and NOI of malls opened during 4Q13(3) IR$179 million proceeds from BH Tower, and R$22 million Capex in acquisition of 10% stake in Boulevard Bauru(4)Yearly Average

Capital Structure

16

Net Debt(1): R$1,738 million

Adjusted Net Debt to Ebitda Ratio(2): 4.1

TR

68.0%

IPCA

7.8%

IGP-DI

5.0%

14.8%Fixed

4.4%

TJLP

1.9341.738

1.582

196

1.738196

157

Short-term Debt Long-term Debt Total Debt Cash Net Debt 1Q14 Events³ Net Debt ProForma

-5

5

15

25

2003 2005 2007 2009 2011 2013

%TR IGP-DI CDI

Last 10 years - Low volatility of TR

168.7151.9 241.6 256.9 130.5 90.0

2014 2015 2016 2017 2018 Average2018-2027


17/23

Source: CVM and Bloomberg

(1) Renato Feitosa Rique or legal entities controlled by him, directly or indirectly(2) Considering closing on March 28, 2014. Share price: R$ 17.94

Shareholder Structure

Shareholder Structure and Stock Performance

17

Renato Rique21.7%

CCPIB27.6%

Free Float47.9%

Management2.8%

Market Cap(2): R$2.9 bn ADTV60(2): R$6.7 mn


18/23

Appendix

18


19/23

Sources: ABRASCE, ICSC, BNDES, IBGE, Collins International, FGV and Cetelem Research – Ipsos 2008 ; (1) Not meaningful because disposable income growth was negative in 2005

10

GLA (sqm m illion) Mall S ales (R$ million)

Supply of shopping mall GLA in other countries farexceeds Brazil’s (GLA / population in thousands)

8.5%4.1%

73.8%

32.0%

MiddleHigh + High Mid

Avg. Income growth 05-09 Avg. Disposable Income growth 05-09

19.3%

Low Mid + Low

n.a.(1)

Avg. household income growth by income segment (2005-2009)

Brazil shopping mall sales and GLA evolution Sales Growth Evolution

Sector Outlook

19

2.218

1.355

235 151

58

US Canada France Mexico Brazil

9.2%

4.8%6.2%

9.7% 9.1%

5.9%

10.9%

6.9%8.4%

4.3%

15.8%

9.3%10.0%

16.0%

11.4%9.9%

17.0%18.6%

10.7%8.1%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Retail Shopping Centers

6.57.5

8.3 8.69.1 9.5

10.311,4

12.9

2005 2006 2007 2008 2009 2010 2011 2012 2013

C


20/23

Leading Developer Most active Developer in Brazil

14 shopping malls developed since 2006

Aliansce has the key strengths to replicate its operational excellence in the upcoming years

New GenerationAssets

Significant portion of GLA with assets with less than 5 years of operating history

Potential value creation: lease step-ups lead to faster growth of SSR

Outstanding Growth Net Revenues 4Q11-4Q13: 75%

Adj. EBITDA 4Q11-4Q13: 71%

Diversified Portfolio Exposure to North and Northeast region, the fastest growing regions in Brazil

Exposure to all income segments

Efficient and SolidCapital Structure

Efficient use of balance sheet

Debt aligned with the company’s cash flow with average maturity of 7 years

Company Highlights

20


21/23

Exposure to Fast Growing Regions Exposure to All Income Segments

Nationwide platform with important presence in the North and Northeast regions and within differentincome segments

High growth regions with GDP growth 17%(1) higher than the Brazilianaverage, with increasing importance in the country’s economy

28% of owned GLA in the North and Northeast regions

Exposure to North and Northeast Regions

Relevant presence in the Southeast, responsible for 55% of theBrazilian GDP

Important major sports events in the upcoming years (World Cup2014 and Olympic Games 2016)

Exposure to Southeast Region

(1) From 2008 to 2010

Balanced Portfolio with Exposure to All Income Segments

21

16% 24% 31% 20% 8%

Brazil’s Disposable Income by Social Class(Total: R$1,275 billion)

Social Classes

Southeast70%

Northeast18%

North10%

Mid-West2%

Owned GLA per Region

Southeast62%

Northeast20%

North16%

Mid-West2%

Revenues per Region

402,311

633,927

389,376

High Income High-Mid Income Middle Income

Portfolio Exposure to Consumers*(Total GLA in sqm)

* Some malls have exposure to more than one income segment


22/23

This presentation may contain forward-looking statements that are subject to risks and uncertainties,because they are not statements of historical facts, but reflect the beliefs and expectations of ourmanagement as well as available information.

Our statements are based largely on current expectations and projections about future events and financialtendencies that affect or may affect our business, and which may or may not materialize. Many factors

could adversely affect our results as contained in our forward-looking statements.

The forward-looking statements include information regarding results and projections, strategies, financingplans, competitive position, industry environment, potential growth opportunities and the effects ofcompetition. Such estimates and projections refer only to the date they were made, and we assume noobligation to publicly update or revise any of these estimates in the light of new information, future eventsor other factors, subject to the applicable regulations.

Disclaimer

22


23/23

Investor relationsRenato Rique - PresidentHenrique Cordeiro Guerra - Executive Director Renato Botelho - CFOEduardo Prado - IR SuperintendentPedro Arieira - IR Analyst

Yan Oliveira - IR Analyst

Phone.: +55 (21) 2176-7272

E-mail: [email protected]

Website: www.aliansce.com.br/ri
mailto:[email protected]://www.aliansce.com.br/rihttp://www.aliansce.com.br/rimailto:[email protected]

march 2014 institutional presentation

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