presentation 4q13
TRANSCRIPT
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4Q13Conference Call
www.multiplan.com.br/[email protected]
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Disclaimer
This document may contain prospective statements, which are subject to risks and uncertainties as they were based on expectations ofthe Companysmanagement 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 Companys control or expectation. The reader/investor should notmake 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 form 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 (Formulrio de Referncia) and other relevant
information on our investor relations website www.multiplan.com.br/ir.
Note:All financial figures presented are in Brazilian Reais (R$).
http://www.multiplan.com.br/irhttp://www.multiplan.com.br/irhttp://www.multiplan.com.br/irhttp://www.multiplan.com.br/irhttp://www.multiplan.com.br/irhttp://www.multiplan.com.br/irhttp://www.multiplan.com.br/irhttp://www.multiplan.com.br/ir -
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Managerial Report
Multiplan is presenting its year-end and quarterly results in a managerial format to provide the reader with a more complete
operational data. Please refer to the Companys financial statements on its website www.multiplan.com.br/ir to access its Financial
Statements in compliance with the Brazilian Accounting Pronouncements CommitteeCPC.
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
companys activities and its subsidiaries, among others (i) CPC 18 (R2) Investment in affiliated companies, subsidiaries and injoint 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 Participaes S.A., a company that owns a 75% interest in Shopping Santa rsula, and the 50%
stake in Parque Shopping Macei 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 Participaes S.A. and Parque Shopping Macei S.A. For additional information, please refer to note 9.4 of the
Quarterly Financial Report dated December 31st, 2013.
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Same Store and Same Area Sales growth (YoY)
Shopping Center Sales
Sales growth: Multiplan vs.
National retail (2013/2012)
Same Area Sales SAS Same Store Sales SSS
Considering 100% of shopping center sales.
+4.3%
+16.3%
National retailsales
Multiplantenants' sales
1,873/m
2,546/m2,950/m
Sales -(Anchors &Satellites)
Sales -stores under
1,000m
Sales -stores under
200m
Portfolio sales
4Q13 monthly sales/m
7.0%
10.3%
7.7%
10.0% 9.7% 9.5% 9.4%
7.4%8.8%
5.7%
7.7% 8.0%
6.6%9.4%
7.5% 8.3% 8.2% 8.1% 8.5% 6.8%8.1%
5.8%8.4% 7.6%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
8.9% 8.9%7.5%
7.6% 8.4% 7.4%
2011 2012 2013
Sales growth: Multiplan vs.
National retail (4Q13/4Q12)
+6.2%
+14.0%
National retailsales
Multiplantenants' sales
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4Q13 x 4Q12
2013 x 2012
Same Store Sales Anchors Satellites Total Anchors Satellites Total
Apparel 7.7% 4.2% 5.2% 9.7% 3.6% 5.2%
Home & Office 7.3% 12.0% 9.1% 5.8% 9.6% 7.2%
Miscellaneous 10.1% 9.7% 10.0% 5.9% 7.6% 6.9%
Food Court & Gourmet Area 8.2% 9.4% 9.3% 7.9% 10.9% 10.6%
Services 0.4% 9.4% 7.1% 7.5% 14.3% 13.2%
Total
8.0%
7.2%
7.6%
7.7%
7.0%
7.4%
2.3%
13.7%
6.3%
6.8%
8.0%8.3%
6.1%
5.4%
8.7%
7.2%
4Q12 1Q13 2Q13 3Q13 4Q13
Anchor stores Satellite stores
Apparel38%
Home & Office9%
Miscellaneous20%
Food Courtand Gourmet
Area10%
Services23%
Same Store Sales growth breakdown
Same Store Sales - Anchor and Satellite stores Total GLA distributionper segment - 2013
Shopping Center Sales
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12.0% 11.9% 12.4% 12.4% 11.7%
1.4%0.7% 0.9%
1.4%0.7%
4Q09 4Q10 4Q11 4Q12 4Q13
Occupancy cost Turnover
0.6%
2.1%
1.5%
1.9% 1.8%
1.5% 1.6%
1.1%
0.3%
1.1%
4Q09 4Q10 4Q11 4Q12 4Q13
Delinquency ra te Rent loss
Total GLA CAGR 4Q09-4Q13:
7.5%
Total shopping center GLA and occupancy rate evolution: 4Q094Q13
Historical delinquency rate
and rent loss: 4Q09-4Q13
Historical turnover
and occupancy cost: 4Q09-4Q13
Selected Operational Data
534552
592
699 712
99.1% 98.6% 98.0% 98.1%98.6%
60.0%
68.0%
76.0%
84.0%
92.0%
100.0%
450
500
550
600
650
700
750
800
850
4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
Total GLA ('000) Occupancy rate
6
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Straight line effect0.5%
Services9.8%
Key money4.9%
Parking12.2%
Real estate for sale9.0%
Other0.3%
Base rent88.6%
Overage
4.1%
Merchandising
7.3%
Rental Revenue63.2%
1,048.0 M
882.7 M
1,074.6 M
117.1 M (9.5 M) 6.8 M15.0 M 26.3 M
34.9 M 1.3 M
Gross Revenue
2012
Gross Revenue
2012excluding MBC
Rental revenue Straight line
effect
Services Key money Parking revenue Real estate for
sale
Other Gross Revenue
2013
21.7%
+20.8% -64.7% +6.9% +39.7% +24.9% +56.1% -64.7%
2013 Gross revenue growth breakdown (YoY)
Gross revenue breakdown2013
Gross Revenue Analysis
Excludes the one-time selling of Morumbi Business Center (MBC) in 2012, for R$165 million. 7
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576.6 M
684.2 M111.2 M 0.9 M 4.8 M (9.5 M)
RentalRevenue 2012
Base rent Overage Merchand. Straight lineeffect
RentalRevenue 2013
18.7%
+22.7% +4.0% +10.9% -64.7%
135/m
90/m
157/m
Portfol io New ShoppingCenters
ConsolidatedShoppingCenters
75.4%
110/m
72/m
128/m
Portfolio New ShoppingCenters
ConsolidatedShoppingCenters
78.3%
2013 Rental revenue growth breakdown (YoY)
Rental revenue per m/month in 4Q13 Rental revenue per m/month in 2013
Rental Revenue Analysis
Shopping centers in operation over 5 years.Shopping centers in operation for 5 years or less. 8
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7.3%8.8% 9.6% 9.3% 7.7%
6.3% 5.7% 5.9% 6.8%7.4% 7.6% 6.7%
2.8%
4.9%5.8%
4.8%
3.9%3.9%
1.8% 2.6%
4.3%0.6%
3.5%
1.2%
10.3%
14.1%
16.0%14.5%
11.9%10.4%
7.7% 8.6%
11.4%
8.0%
11.4%
8.0%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
IGP-DI Adjustment Effect Real SSR
8.8%6.4% 6.9%
4.9%
3.7% 2.5%
14.1%
10.4%9.6%
2011 2012 2013
Same Store Rent (SSR) breakdown - Nominal and real growth
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
2007 2008 2009 2010 2011 2012 2013
IPCA IGP-DI Adjustment Effect SSR
Same Store Rent (SSR) versus inflation indexes
Rental Revenue Analysis
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80.4 M
108.9 M
50.6 M
126.3 M
26.7 M
91.6 M
20,000
40,000
60,000
80,000
100,000
120,000
4Q12 1Q13 2Q13 3Q13 4Q13
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000180,000
200,000
Jan
Feb
Mar
Apr
May
JunJu
l
Aug
Sep
Oct
Nov
Dec
+56.6%
JundiaShopping
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000180,000
200,000
JanFeb
Ma
r
Ap
r
May
JunJu
l
Aug
SepOc
t
Nov
Dec
+82.3%
ParkShoppingCampoGrande
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Jan
Feb
Ma
r
Ap
r
May
Jun
Ju
l
Aug
Sep
Oc
t
Nov
Dec
+37.9%
VillageMall
Vehicle flow evolution - 2013
Sales evolution
New Malls 2013 Performance
JundiaShopping ParkShoppingCampoGrande VillageMall
95.0% 96.6%
96.2% 97.9%
88.7%
98.9%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
4Q12 1Q13 2Q13 3Q13 4Q13
Opening dates: JundiaShopping: October 17th, 2012; ParkShoppingCampoGrande: November 28th, 2012; VillageMall: December 3rd, 2012.
Occupancy Rate evolution
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845/m
1,484/m
1,720/m
New ShoppingCenters
Portfol io ConsolidatedShoppingCenters
730/m833/m
1,072/m
ParkShoppingCampoGrande
JundiaShopping
Village Mall
+75.5%
+103.4%
72/m
110/m
128/m
New ShoppingCenters
Portfol io ConsolidatedShoppingCenters
66/m 69/m
85/m
JundiaShopping
ParkShoppingCampoGrande
Village Mall
+53.1%
+78.5%
Rent/m/month in 2013
Sales/m/month in 2013
New Malls 2013 Performance (Contd)
Shopping centers in operation over more than 5 years 11
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0.69 0.75 0.730.94
1.14 1.09
2.06 2.172.58
3.09
3.623.97
2008 2009 2010 2011 2012 2013
NOI + Key money per share (4th quarter) NOI + Key money per share (year)
CAGR:
14.0%
CAGR:
9.4%
Shopping center expenses evolution
and as % of shopping center net revenue
NOI + Key Money and margin
(2013/2012)
NOI + key money per share evolution
Net Operating Income (NOI)
Excluding real estate for sale revenue and taxes, and straight-line effect Shares outstanding at the end of each year, adjusted for shares held in treasury
23.6 M 24.9 M
34.4 M
26.8 M
38.4 M
10.0% 12.4% 16.8% 12.9% 14.2%
4Q12 1Q13 2Q13 3Q13 4Q13
62.7%
644.7 M744.1 M
89.6% 85.7%
2012 2013
15.4%
12
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610.7 M
626.6 M
650.1 M
62.4%
70.4%
73.1%
2013 Consolidated
EBITDAShopping Center
EBITDAShopping Center
EBITDA before New
Projects for LeaseExpenses
0.94 x0.84 x 0.83 x 0.78 x
0.93 x 0.98 x 0.97 x
1.00 x
2007 2008 2009 2010 2011 2012 2013
541.7 M
615.8 M 610.7 M
2012 ConsolidatedEBITDA
Excluding the Saleof Morumbi
Business Center
2012 ConsolidatedEBITDA
2013 ConsolidatedEBITDA
0.8%
12.7%
2013 Consolidated EBITDA
and Margins (%)
Consolidated EBITDA Evolution
(2013/2012)
Annual services revenue / G&A (x)
EBITDA Analysis
55.9 M
79.1 M88.2 M 93.1 M 88.4 M
99.9 M108. M
16.6%19.2% 18.3%
15.4%13.1%
10.4% 11.0%
2007 2008 2009 2010 2011 2012 2013
8.1%
Annual G&A expenses and
G&A/Net revenues (%) evolution
13
Shopping Center EBITDA
Evolution (2013/2012)
539.8 M
626.6 M
71.7% 70.4%
2012 ShoppingCenter EBITDA
2013 ShoppingCenter EBITDA
16.1%
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434.6 M
515.6 M
426.2 M
54.1% 53.6%43.6%
2012 Excludingthe Sale of
Morumbi BusinessCenter
2012 2013
17.4%
1.9%
307.0 M
388.1 M
284.6 M
38.2% 40.3%29.1%
2012 Excludingthe Sale of
Morumbi BusinessCenter
2012 2013
26.7%
7.3%
Net income and margin (2013/2012)FFO and margin (2013/2012)
1.351.61 1.54
2.06
2.33
2.89
2.27
0.46 0.45 0.520.59
0.740.89
0.47
2007 2008 2009 2010 2011 2012 2013
FFO per share evolution
Net Income and FFO per Share
FFO per share (year) FFO per share (4th quarter) 14
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351.5M
2,203.6M
1,852.0M
610.7M426.2M
Cash GrossDebt
Net Debt EBITDA2013
FFO2013
Debt and Cash
Debt Position and Cash Generation (December 31st, 2013)
Net Debt
EBITDA (LTM)= 3.03x
5048
45
5553
4Q12 1Q13 2Q13 3Q13 4Q13
TR42.3%
CDI42.5%
TJLP8.9%
IGP-M3.2%
Others3.1%
Multiplan Debt Indices (December 31st, 2013)Weighted Average Maturity (Months)
15
Ratings
(issued on December 10th, 2013)
Global Scale: BBB
National Scale: brAAA
Standard & Poors upgrades Multiplans
rating on the global scale
StableOutlook
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11.18% 11.08%
10.52%9.98% 9.48% 9.08% 8.95% 9.20% 9.34% 9.87%
12.00%11.00%
9.75%8.50%
7.50% 7.25% 7.25%8.00%
9.00%
10.00%
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
Multiplan Cost of Funding Selic Rate
1.0%
32.0%
40.0% 38.0% 39.0%
49.1% 49.4% 49.4%
42.0%
42.5%65.0%
40.0%
37.0% 38.0% 38.5%32.0% 31.8% 30.9%
42.3% 42.3%
34.0%28.0%
23.0% 24.0% 22.5%18.9% 18.8%
19.7%
15.7% 15.2%
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
CDI TR Other
Multiplan Main Debt Indices Evolution
Weighted average cost of funding (% p.a.) vs. Selic Rate
Debt and Cash (Contd)
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371.6411.4
528.139.8
116.7
106.9
371.6 411.4
528.1
635.0
2010 2011 2012 2013
+54.3%
+70.9%
+10.7%
+28.4%
+20.2%
Portfolio breakdown
(as % of owned GLA)
Owned GLA growth (2010-2013)in thousand m
Another Growth Cycle Delivered71% owned GLA growth in the last three years
GLA with 5 years or less in operation GLA with more than 5 years in operation 17
ConsolidatedGLA48%
New GLA
52%
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Parque Shopping Macei
Illustration of potential mixed-use projectDay before opening (November 2013)
Day before opening (November 2013) Day before opening (November 2013)
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Expansion VIII
Opening day (December 2013) 19
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Expansion VII
Illustration
Construction site (February 2014)
Construction site (February 2014)
20
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&
Illustration
Construction site (January 2014) Construction site (January 2014)
Illustration
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Fair Value Analysis
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1.5 B
3.0 B
4.5 B
6.0 B
7.5 B
9.0 B
10.5 B
12.0 B
13.5 B
15.0 B
2009 2010 2011 2012 2013
Properties in Operation Properties Under Development (Announced) Future Projects (Not Announced)Fair
Value
22 Fair Value was based on internal valuation. For more details, please see the Financial Statements and the Earnings Release report.
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347,985371,640
411,423
521,439 535,3138.5 B
12.3 B13.0 B
14.7 B 14.6 B
2009 2010 2011 2012 2013
Owned GLA (m) Fair Value
23
Fair Value Analysis (Contd)
Fair Value was based on internal valuation. For more details, please see the Financial Statements and the Earnings Release report.
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67.5% 53.8% 52.6%73.4%
64.8%
5.8 B6.6 B 6.9 B
10.8 B
9.5 B
8.5 B
12.3 B13.0 B
14.7 B 14.6 B
2009 2010 2011 2012 2013
Spread Market Cap / Fair Value Market Cap Fair Value
24
Fair Value Analysis (Contd)
Fair Value was based on internal valuation. For more details, please see the Financial Statements and the Earnings Release report.
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IR Contact
Armando dAlmeida Neto
CFO and Investors Relation Director
Rodrigo Krause
Investor Relations Superintendent
Leonardo Oliveira
Investor Relations Senior Analyst
Franco Carrion
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