presentation 4q14

8/9/2019 Presentation 4Q14

1/15

4Q14

4Q14 Conference Call

www.multiplan.com.br/[email protected]


2/15


3/15

4Q14Managerial Report

Multiplan is presenting its quarterly and annual results in a managerial format to provide the reader with a more complete perspective

on operational data. Please refer to the company ´s financial statements on its website www.multiplan.com.br/ir to access the

Financial Statements in compliance with the Brazilian Accounting Standards Committee – CPC.

Please see on page 34 in this report the changes determined by Technical Pronouncements CPC18 (R2) and CPC19 (R2), and the

reconciliation of the accounting and managerial numbers.

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 1 st, 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

Financial Statements dated December 31 , 2014.

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4Q14

2.8 B 3.1 B 3.6 B4.2 B 5.1 B

6.1 B7.5 B 8.5 B

9.7 B11.4 B

12.8 B

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

+12.1%+2.1 x+4.6 x

Multiplan’s shopping centers total sales (R$)

0.9 B 1.0 B 1.2 B1.4 B 1.7 B

2.0 B2.4 B

2.8 B3.2 B

3.7 B4.1 B

4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14

+11.3%+2.0 x+4.4 x

Source: Multiplan

Shopping Centers Sales

Same Store and Same Area Sales growth (YoY)

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%

6.7%8.8%

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% 6.1% 7.9%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

8.9% 8.9%7.5%

9.0%

7.6% 8.4% 7.4% 7.9%

2011 2012 2013 2014

Same Area Sales Same Store Sales

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4Q14

98.5% 98.4%98.8% 99.0%

97.5%97.6%

98.1%

98.6%

97.2%

97.8%

98.5%

98.1%98.4% 98.1% 98.1%

98.0%

96.0%

97.0%

98.0%

99.0%

100.0%

1Q 2Q 3Q 4Q

2014

2013

2012

2011

2.1%

1.5%

1.9% 1.8% 1.7%1.6%

1.1%

0.3%

1.1%

0.6%

4Q10 4Q11 4Q12 4Q13 4Q14

Delinquency Rate Rent Loss

Selected Operational Data

Occupancy rate evolution

11.9% 12.4% 12.4% 11.7% 11.7%

0.7% 0.9% 1.4% 0.7% 0.5%

4Q10 4Q11 4Q12 4Q13 4Q14

Occupancy Cost Turnover

Historical turnover and

occupancy cost: 4Q10 – 4Q14

Historical delinquency rate

and rent loss: 4Q10 – 4Q14

Source: Multiplan 5


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4Q14

1.3 M

5.6 M

10.1 M 11.1 M

13.4 M

4Q13 1Q14 2Q14 3Q14 4Q14

Parking12.7%

Services9.6%

Real estate forsale revenue

9.4%

Key money3.0%

Straight lineeffect0.7%

Others0.3%

Base rent88.7%

Overage3.9%

Merchandising7.4%

Rentalrevenue64.4%

Gross revenue (R$) growth (YoY)

Gross revenue breakdown: 2014

Gross Revenue Analysis

Source: Multiplan

Morumbi Corporate rental revenue evolution (R$)

1,074.6 M

1,245.0 M

122.3 M 4.0 M 13.9 M (16.0 M) 26.0 M 20.2 M0.0 M

Gross Revenue2013

Rental revenue Straight lineeffect

Services Key money Parking Real estate for sale revenue

Others Gross Revenue2014

15.9%

+18.0% +78.2% +13.2% -30.3% +19.7% +20.8% +0.6%

21.2%

2014: 40.3 M

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4Q14

8.8% 6.4% 6.9% 5.8%

4.9%3.7% 2.5% 2.8%

14.1%

10.4% 9.6% 8.8%

2011 2012 2013 2014

7.3% 8.8% 9.6% 9.3% 7.7% 6.3% 5.7% 5.9% 6.8% 7.4% 7.6% 6.7% 5.9% 5.8% 5.9% 5.6%

2.8%

4.9% 5.8% 4.8%3.9%

3.9%1.8% 2.6%

4.3%0.6%

3.5%1.2% 0.9%

4.1% 2.7% 3.4%

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%8.8% 9.2%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Evolution of rental/m² per month ¹ (R$)

¹ Shopping centers in operation for 5 years or less.² Shopping centers in operation for over 5 years.Source: Multiplan

Rental Revenue Analysis

Evolution of Same Store Rent

Rental revenue (R$)

IGP-DI Adjustment Effect Real SSR

113/m²

76/m²

127/m²

Portfolio New ShoppingCenters¹

ConsolidatedShoppingCenters²

∆ 68.5%

7

216.7 M262.7 M

4Q13 4Q14

+21.2%

679.0 M801.3 M

2013 2014

+18.0%


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4Q14

65.9 M58.3 M

75.1 M

124.6 M

106.6 M

12.1% 9.2% 10.2% 14.1% 10.9%

2010 2011 2012 2013 2014

-14.5%

93.1 M 88.4 M 99.9 M 108.0 M

117.0 M

15.4%13.1%

10.4% 11.0% 10.3%

.

.

1 .

1 .

2 .

2 .

.

.

.

2010 2011 2012 2013 2014

+8.3%

28.2 M24.5 M

31.6 M 29.5 M 31.3 M

10.5% 9.5%11.6% 10.6% 9.7%

4Q13 1Q14 2Q14 3Q14 4Q14

+11.1%

G&A and Shopping Centers Expenses

8

Evolution of G&A expenses (R$) and as a % of net revenues

Evolution of shopping center expenses (R$) and as a % of shopping center net revenues ¹

38.4 M

25.5 M 24.8 M 26.9 M 29.3 M

14.2% 11.5% 10.4% 11.4% 9.7%

4Q13 1Q14 2Q14 3Q14 4Q14

-23.9%

¹ Shopping center net revenues exclude real estate for sale revenue and taxes, and straight-line effectSource: Multiplan


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4Q14

0.73 0.941.14 1.09 1.38

2.583.09

3.623.97

4.72

4Q10 4Q11 4Q12 4Q13 4Q14

NOI + Key Money per share (quarter)NOI + Key Money per share (LTM)

CAGR:12.9%

CAGR:16.7%

203.7 M

258.2 M

84.1% 88.1%

4Q13 4Q14

+26.7%

744.1 M883.0 M

85.7% 87.9%

2013 2014

+18.7%

137.6 M

213.6 M

56.4%76.1%

4Q13 4Q14

+55.2%

609.8 M

752.4 M

68.6% 76.2%

2013 2014

+23.4%

138.8 M

223.8 M

51.7%69.4%

4Q13 4Q14

+61.2%

610.7 M

793.7 M

62.4% 70.2%

2013 2014

+30.0%

Evolution of NOI + Key Money per share¹ (R$)

Net Operating Income (NOI) and EBITDA

9

Net Operating Income (NOI) + Key Money (R$)

Shopping Center EBITDA (R$) Consolidated EBITDA (R$)

¹Shares outstanding adjusted for shares held in treasurySource: Multiplan


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4Q14

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%62.4%

70.2%66.7%

59.3%

68.8%62.6%

75.3% 74.1%

68.6%

76.2%

51.8% 57.7%56.5%

60.9% 61.4% 53.6%

43.6%48.9%

2007 2008 2009 2010 2011 2012 2013 2014

NOI Margin EBITDA Margin Shopping Center EBITDA Margin FFO Margin

Margins evolution

10Source: Multiplan

Gross Revenue

Net Operating Income

EBITDA

FFO

Net Income

Historical performance (R$ Million)

368.8

212.1

212.2

200.2

21.2

2007 (IPO)

1,245.0

846.1

793.7

552.9

368.1

2014

3.4x

4.0x

3.7x

2.8x

17.4x

Results and Margins Evolution


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4Q14

338.3M

2,214.5M

1,876.2M

793.7M

552.9M

Cash Gross Debt Net Debt EBITDA(LTM)

FFO (LTM)

Debt and CashCash generation and debt position (R$)

as of December 31, 2014

Net DebtEBITDA (LTM)

= 2.36x

Multiplan debt indices onDecember 31, 2014

11

Weighted average cost of funding (% p.a.) vs. Selic rate

Weighted average maturity(months)

11.08%10.52%

9.98%9.48% 9.08% 8.95% 9.20% 9.34%

9.87%10.41% 10.50% 10.54%

10.96%11.00%9.75%

8.50%7.50% 7.25% 7.25%

8.00%9.00%

10.00%10.75% 11.00% 11.00%

11.75%

Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14

Multiplan Cost of Funding (gross debt) Selic Rate

TR42.7%

CDI45.4%

TJLP6.7%

IGP-M2.3%

Other 2.9%

5350

4846

54

4Q13 1Q14 2Q14 3Q14 4Q14

Source: Multiplan


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4Q14

Dividend distribution - including interest on Shareholders' Equity (R$)Total payout as a % of net income after legal reserve

442 M

689 M

1,344 M

775 M

302 M

2010 2011 2012 2013 2014

-0.70 x

0.95 x

2.44 x3.03 x

2.36 x

2010 2011 2012 2013 2014

Net debt / EBITDA

102.9 M149.0 M

183.7 M135.0 M

174.9 M

50% 53% 50% 50% 50%

2010 2011 2012 2013 2014

372411

521

628 638

2010 2011 2012 2013 2014

+71.5%

Invested CAPEX (R$)

Investment, Growth and Dividend Payout

12

Dividend distribution

Owned GLA (‘000 m²)

Financial leverage

Source: Multiplan

Total: R$3,552M

Total: R$745.6M


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4Q14

68.8773.21

82.45 78.06

84.99

100

111 138

145

162

120

143

163

197

111

140

160

166

2010 2011 2012 2013 2014

Fair Value - properties in operationNOI - properties in operationOwned GLA - properties in operation

-

2.5 B

5.0 B

7.5 B

10.0 B

12.5 B

15.0 B

17.5 B

2010 2011 2012 2013 2014

Future projects (not disclosed)Properties under development (disclosed)Properties in operation

Fair Value

16.0 B

2010 2011 2012 2013 2014

13

Fair Value AnalysisEvolution of Fair Value¹ (R$) Growth of Fair Value¹, NOI and owned GLA

(Base 100: 2010)

Fair Value¹ per share (R$)

¹ Calculated according to CPC 28. Details are available in the December 31, 2014 Financial Statements and 4Q14 Earnings Report.² Based on stock price in December 31, 2014.³ The sum of Market Cap and Net Debt.Source: Multiplan

Market Cap vs. Enterprise Value (EV) vs. Fair Value¹On December 31, 2014

9.0 B10.9 B

16.0 B

Market Cap ² EnterpriseValue (EV) ³

Fair Value ¹

∆ 47%


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4Q14

Multiplańs nineteenth shopping center;

48,000 m² of Gross Leasable Area (GLA);

Multiplan will hold an80% interest in the shoppingcenter;

258 stores ;

2,500 parking spots ;

Modernmix that reflects the current needs.

Source: Multiplan

ParkShoppingCanoas

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4Q14

IR Contact

Armando d’Almeida Neto CFO and IRO

Hans MelchersInvestor Relations and Planning Director

Franco CarrionInvestor Relations Manager

Carolina WeilInvestor Relations Analyst

Ricardo GasparPlanning Manager

Tel.: +55 (21) 3031-5224Fax: +55 (21) 3031-5322

E-mail: [email protected]

http://www.multiplan.com.br/ri

presentation 4q14

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