presentation 2q14
TRANSCRIPT
2Q14
2
Disclaimer
This document may contain prospective statements, which are subject to risks and uncertainties as they were based on expectations of
the Company’s management and on the information available. The Company has no obligation to update said statements.
The words "anticipate“, “wish“, "expect“, “foresee“, “intend“, "plan“, "predict“, “forecast“, “aim" and similar words are intended to identify
statements.
Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market
share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many
factors and values that can establish these results are outside the Company’s control or expectation. The reader/investor should not
make the decision to invest in Multiplan shares based exclusively on the data disclosed on 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, demand 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 previous warning.
Non-accounting information has not been reviewed by the external auditors.
In this document the company has chosen to present the consolidated data from a managerial perspective, in line with the accounting
practices in use until December 31st, 2012, as disclosed in the next page.
For more detailed information, please check our Financial Statements, Reference Form (Formulário de Referência) and other relevant
information on our investor relations website www.multiplan.com.br/ir.
Note: All financial figures presented are in Brazilian Reais (R$).
2Q14
3
Managerial Report
Multiplan is presenting its quarterly results in a managerial format to provide the reader with a more complete operational data.
Please refer to the Company´s financial statements on its website www.multiplan.com.br/ir to access its Financial Statements in
compliance with the Brazilian Accounting Pronouncements Committee – CPC.
The following pages present a brief description of the changes determined by Technical Pronouncement CPC19 (R2), and the
conciliation between the accounting and managerial numbers.
During fiscal year 2012, the Accounting Pronouncements Committee (CPC) issued the following pronouncements that impact the
company´s activities and its subsidiaries, among others (i) CPC 18 (R2) – Investment in affiliated companies, subsidiaries and in
joint control developments; (ii) CPC 19 (R2) – Combined business. These pronouncements required their implementation for fiscal
years starting January 1st, 2013. Such pronouncements determine, among other issues, that developments controlled jointly be
recorded in financial statements via equity pick-up. In this case the company no longer consolidates proportionally the 50% interest
in Manati Empreendimentos e Participações S.A., a company that owns a 75% interest in Shopping Santa Úrsula, and a 50% stake
in Parque Shopping Maceió S.A., a company that owns a 100% interest in the shopping center of the same name. This report
adopted the managerial format and, for this reason, does not consider the requirements of CPCs 18 (R2) and 19 (R2). In this
manner, 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
Quarterly Financial Report dated June 30th, 2014.
2Q14
+15.2%
+45.7%
Portfolio Three mallsopened in
4Q12²
4
Same Store and Same Area Sales growth (YoY)
Shopping Center Sales
¹ Considering 100% of shopping center sales.
² Three malls opened in 4Q12 (JundiaíShopping, ParkShoppingCampoGrande and VillageMall),
Shopping Center Sales evolution¹ Same Store Sales
Anchor and Satellite stores
7.0%
10.3%
7.7%
10.0% 9.7% 9.5% 9.4%7.4%
8.8%
5.7%7.7% 8.0%
9.3%
12.0%
6.6%9.4%
7.5% 8.3% 8.2% 8.1% 8.5%6.8% 8.1%
5.8%8.4% 7.6% 8.3% 9.4%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
SAS SSS
6.3%
6.8%
8.0%
5.8%
8.0%
5.4%
8.7%
7.2%
8.7%
9.7%
2Q13 3Q13 4Q13 1Q14 2Q14
Anchor stores Satellite stores
1.4 B1.7 B
2.0 B2.3 B
2.6 B3.0 B
2Q09 2Q10 2Q11 2Q12 2Q13 2Q14
+16.4%+15.2%
2Q14 Sales Breakdown ¹
CAGR:
2Q14
533552
592
699
762
98.1% 98.1% 97.8% 97.6%98.4%
60.0%
68.0%
76.0%
84.0%
92.0%
100.0%
450
500
550
600
650
700
750
800
850
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2T14
Total GLA ('000 m²) Occupancy rate
Total GLA CAGR 1Q10-2Q14: 9.4%
Total shopping center GLA (‘000 m²) and occupancy rate evolution: 2Q10 – 2Q14
Historical turnover
and occupancy cost: 2Q10-2Q14
Selected Operational Data
5
12.9% 12.8% 13.1% 13.7%12.7%
1.3% 1.7% 1.3% 1.4%1.0%
2Q10 2Q11 2Q12 2Q13 2Q14
Occupancy cost Turnover
Sales/m² Evolution¹
648/m²761/m² 813/m²
1,134/m²
858/m²
1,135/m²
1,375/m²1,467/m² 1,495/m²
1,979/m²
1,443/m²1,565/m²
Δ 112%Δ 93% Δ 84%
Δ 74%
Δ 68%
Δ 38%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
Three malls opened in 4Q12
Portfolio excl. three malls
Delta (Δ )
²
¹ Considering 100% of shopping center sales.
² Three malls opened in 4Q12 (JundiaíShopping, ParkShoppingCampoGrande and VillageMall),
2Q14
262.8 M
298.3 M33.1 M (2.4 M) 0.3 M (4.7 M) 7.7 M 1.9 M (0.6 M)
Gross Revenue2Q13
Locação Straight lineeffect
Services Key money Parking revenue Real estate forsale
Other Gross Revenue2Q14
13.5%
+21.6% -26.9% +1.2% -33.0% +25.0% +7.3% -32.5%
Straight line effect2.2%
Services9.2%
Key money3.2%
Parking13.0%
Real estate for sale9.6%
Base rent87.3%
Rental revenue62.4%
Overage4.4%
Merchandising8.3%
Gross revenue growth breakdown (YoY)
Gross revenue breakdown – 2Q14
Gross Revenue Analysis
6
2Q14
7.3% 8.8% 9.6% 9.3% 7.7% 6.3% 5.7% 5.9% 6.8% 7.4% 7.6% 6.8% 5.9% 5.8%
2.8%
4.9%5.8% 4.8%
3.9%3.9%
1.8% 2.6%4.3%
0.6%3.5%
1.1%0.9%
4.1%
10.3%
14.1%16.0%
14.5%
11.9%10.4%
7.7% 8.6%
11.4%
8.0%
11.4%
8.0%6.8%
10.1%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
IGP-DI Adjustment Effect Real SSR
153.1 M186.2 M+28.0 M +1.5 M +3.7 M
Rental Revenue2Q13
Base rent Overage Merchand. Rental Revenue2Q14
21.6%
+20.7% +21.8% +32.2%
Rental revenue growth breakdown (YoY)
Rental Revenue Analysis
7
Same Store Rent (SSR) breakdown - Nominal and real growth
2Q14
34.4 M
26.8 M
38.4 M
25.5 M 24.8 M
17.3%13.2% 14.4% 11.7% 10.6%
2Q13 3Q13 4Q13 1Q14 2Q14
27.8%
Shopping center expenses evolution
and as % of shopping center net revenue ¹
Expenses Analysis
8
32.1 M27.8 M 28.2 M
24.5 M
31.6 M
13.5%11.2% 10.5% 9.5%
11.6%
2Q13 3Q13 4Q13 1Q14 2Q14
1.7%
G&A expenses and
G&A/Net revenues (%)
¹ Excluding real estate for sale revenue and taxes, and straight-line effect
2Q14
NOI + Key money per share¹ evolution
Net Operating Income (NOI) and EBITDA
¹ Shares outstanding at the end of each period, adjusted by shares held in treasury 9
0.54 0.62 0.70 0.79 1.02 1.05
2.21 2.34 2.66
3.18
3.85 4.03
1Q09 1Q10 1Q11 1Q12 1Q13 1Q14
NOI + Key money per share
NOI + Key money per share (LTM)
CAGR: 14.0%
CAGR: 12.7%
Net Operating Income (NOI) + Key Money
Consolidated EBITDA
Shopping Center EBITDA
308.2 M
383.6 M
66.9%
72.4%
1H13 1H14
24.5%
149.0 M
187.1 M
62.7%
68.6%
2Q13 2Q14
25.6%
354.9 M409.6 M
85.7%
87.9%
1H13 1H14
15.4%
172.8 M
213.6 M
83.4%
88.6%
2Q13 2Q14
23.6%
311.2 M
361.3 M
73.4%77.5%
1H13 1H14
16.1%
148.9 M
178.6 M
69.8%
75.3%
2Q13 2Q14
20.0%
0.59 0.59 0.71 0.83 0.92 1.14
2.30 2.44 2.77
3.29
3.76
4.23
2Q09 2Q10 2Q11 2Q12 2Q13 2Q14
NOI + Key money per share
NOI + Key money per share (LTM)
CAGR: 14.0%
CAGR: 13.0%
2Q14
Net income and margin FFO and margin
FFO per share evolution
Net Income and FFO per Share
10
211.4 M
272.5 M
45.9%
51.4%
1H13 1H14
28.9%
109.4 M
143.9 M
46.1%
52.8%
2Q13 2Q14
31.5%
140.8 M
175.7 M
30.5% 33.2%
1H13 1H14
24.8%
70.3 M
93.4 M
29.6%34.3%
2Q13 2Q14
32.7%
0.37 0.49 0.45 0.53 0.58
0.77
1.55
1.91 2.10
2.72
2.50 2.59
2Q09 2Q10 2Q11 2Q12 2Q13 2Q14
FFO per share
FFO per share (LTM)
CAGR: +15.4%
CAGR: +10.8%
2Q14
Multiplan’s Margin Evolution
11
76.3%78.0%
85.3% 86.6%89.8% 89.0%
84.7%87.4%
52.1%
60.1%
63.0%
57.9%
67.3%64.0%
62.6%
72.4%
66.7%
59.3%
68.4%61.0%
74.3%71.7% 70.9%
77.5%
51.8%
57.7% 56.5%
60.9%
61.4% 53.6%
43.6%
51.4%
2007 2008 2009 2010 2011 2012 2013 1H14
NOI Margin EBITDA Margin Shopping Center EBITDA Margin FFO Margin
2Q14
45
55 53
50 48
2Q13 3Q13 4Q13 1Q14 2Q14
Weighted Average Maturity
195.0M
2,124.9M1,929.8M
686.1M487.2M
Cash Gross Debt Net Debt EBITDA(LTM)
FFO (LTM)
Debt and Cash
Cash Generation and Debt Position ¹
Net Debt
EBITDA (LTM) = 2.81x
Multiplan Debt Indices ¹ Weighted Average Maturity (Months)
12 ¹ As of June 30th, 2014
11.08%10.52%
9.98% 9.48% 9.08% 8.95% 9.20% 9.34%
9.87%
10.41%11.00%9.75%
8.50%7.50% 7.25% 7.25%
8.00%9.00%
10.00%10.75%
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
Multiplan Cost of Funding Selic Rate
Weighted average cost of funding (% p.a.) vs. Selic Rate
TR41.9%
CDI43.4%
TJLP8.0%
IGP-M3.3%
Other3.4%
11.08%10.52%
9.98% 9.48% 9.08% 8.95% 9.20% 9.34%
9.87%10.41% 10.50%
11.00%9.75%
8.50%7.50% 7.25% 7.25%
8.00%9.00%
10.00%10.75% 11.00%
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
Multiplan Cost of Funding Selic Rate
2Q14
New land in São Paulo, in Parque Global
13 Area of the project to be developed by Multiplan (in red)
Artist´s rendering for illustration purposes only – Project subject to changes without previous notice
111,000 m²
2Q14
ParkShoppingCanoas
14 Artist´s rendering for illustration purposes only – Project subject to changes without previous notice
Artist´s rendering for illustration purposes only – Project subject to changes without previous notice
2Q14
BarraShopping Expansion VII
15
BarraShopping Exp. VII – July 2014
BarraShopping Exp. VII – July 2014
2Q14
Illustration
16
Diamond Tower and Résidence du Lac
BarraShoppingSul Complex, Construction Works, July 2014
2Q14
Land Bank and Future Growth
17
Localização Área do
terreno (100%)
Área privativa
(100%) Tipo de projeto % 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 140,000 m² 164,136 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 36,077 m² Office 100%
Total 873,819 m² 1,041,299 m² 86%
Artist´s rendering for illustration purposes only – Project subject to changes without previous notice
2Q14
IR Contact
Armando d’Almeida Neto
CFO and Investors Relation Director
Rodrigo Krause
Investor Relations Superintendent
Franco Carrion
Investor Relations Analyst
Ricardo Gaspar
Investor Relations Analyst
Hans Melchers
Planning Manager
Tel.: +55 (21) 3031-5224
Fax: +55 (21) 3031-5322
E-mail: [email protected]
http://www.multiplan.com.br/ri