Multiplan Empreendimentos Imobiliarios Sa · BMFBOVESPA:MULT3
Multiplan Empreendimentos Imobiliarios Sa — Q4 2021 Earnings Presentation
34 slides from Multiplan Empreendimentos Imobiliarios Sa's earnings presentation, Feb 11, 2022
Slide 1: Results Conference Call 4Q21
RESULTS CONFERENCE CALL 4Q21
Slide 2: Disclaimer
\ DISCLAIMER This document may 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 words “anticipate”, “wish”, “expe
Slide 3: ESG: Environmental initiatives
ESG Environmental initiatives that are part of Multiplan's DNA ✓ Biodiversity: The Company maintains 349,000 sq.m of green areas adjacent to its properties ParkJacarepaguá – Effluent Treatment Station ✓ Water: Rainwater reuse system and effluent treatment station lead to lower common expenses. ✓ Was
Slide 4: ESG: Initiatives that generate positive social impact
ESG Initiatives that generate positive social impact ✓ Continuing initiatives: COVID-19 vaccination campaigns held in Multiplan’s malls throughout 2021 and carried over into 2022. Blood donation campaigns ParkShoppingCampoGrande – Blood donation campaigns ✓ Job creation: Multiplan is responsible for
Slide 5: ESG: Best governance and corporate responsibility practices
ESG Best governance and corporate responsibility practices ✓ Diversity and inclusion: In December 2021, 44% of leadership positions1 at Multiplan’s corporate headquarters were held by women. ✓ S&P ESG Credit Indicator: In December 2021, S&P evaluated Multiplan as the best qualified JundiaíShopping c
Slide 6: Growth with proven track record
Growth with proven track record Rent and sales already surpass record levels for 2019 Quarterly operating hours1, tenants’ sales and malls’ rental revenue 142.6% 135.4% 119.7% 108.1% 104.4% 97.0% 102.0% 98.3% 93.8% 89.8% 85.5% 98.7% 100.0% 100.0% 100.0% 83.3% 77.2% 78.4% 64.9% 58.4% 88.5% 55.5% 72.3
Slide 7: Double digit growth vs. 2019 on a same basis
Double digit growth vs. 2019 on a same basis performance SSS1 of the Apparel segment surpasses 4Q19 by 19% despite existing restrictions SSR1 equals the IGP-DI adjustment effect while still affected by discounts Same Store Sales (SSS) Indexes and Same Store Rent (SSR) 4Q21 x 4Q19 Anchor Satellite To
Slide 8: Sustainable rent increase
Sustainable rent increase Rental revenue 35.4% above 2019, with controlled net delinquency rate Net delinquency rate and Occupancy cost rental revenue 135.4% 119.7% 12.7% 102.0% 12.0% 11.8% 11.6% 11.6% 11.9% 97.0% 77.2% 3.5% 4.5% 4.3% 4.2% 3.1% 3.9% 11.0% 8.5% 9.1% 8.0% 7.6% 7.5% 7.4% 5.8% 5.7% 4.6%
Slide 9: The pursuit of sustainable growth
The pursuit of sustainable growth One key challenge is to grow in a sustainable way while still considering tenants’ financial health Occupancy Revenue growth Rent Cost +35.4% 12.7% Common charges optimization Higher receivables Occupancy Sustainable Occupancy Cost Rate Delinquency 95.3% 4.6% Increa
Slide 10: Case study – Occupancy cost
Case study – Occupancy cost A mall’s occupancy cost evolves as it consolidates, benefitting from tenants’ operating leverage 10.5% Barra 9.5% BH Shopping Shopping Mall growth cycle Morumbi Shopping NewYork Rent per sq.m / Sales per sq.m CityCenter Occupancy Cost Proxy (2019) 8.5% Barra Anália Diamon
Slide 11: The perceived value of the store surpasses its sales
The perceived value of the store surpasses its sales Omnichannel Value > Sales Omnichannel Distribution hub and reverse logistics center Sales Brand exposure Qualified flow of customers Location Cost reduction and scale gains Brand exposure Location Convenience Serviço Cost reduction 11
Slide 12: Mix of the future
Mix of the future Fashion Diversification Sensory experience Customized clothing Food-hall DIY projects Fashion trends Authorial cuisine Product customization New habits (home International cuisine office, online classes) Individualized, specialized and differentiated service Cooking classes Interio
Slide 13: Financial results – 4Q21 vs. 4Q19
Financial results – 4Q21 vs. 4Q19 Exceeding 2019’s results, with 50.1% higher net income NOI EBITDA FFO NET INCOME (Net Operating Income) (Funds From Operations) 387 285 308 214 R$ M R$ M R$ M R$ M 88.1 % MARGIN 64.0 % MARGIN 69.2 % MARGIN 47.9 % MARGIN +16.1% vs. 4Q19 +13.0% vs. 4Q19 +33.5% vs. 4Q1
Slide 14: Financial results – 2021 vs. 2019
Financial results – 2021 vs. 2019 Despite severe restrictions in the first semester, results were in line with 2019 NOI EBITDA FFO NET INCOME (Net Operating Income) (Funds From Operations) 1,119 811 702 453 R$ M R$ M R$ M R$ M 85.8 % MARGIN 61.9 % MARGIN 53.6 % MARGIN 34.6 % MARGIN -6.9% vs. 2019 -1
Slide 15: Capital structure
Capital structure D E BT Efficient liability management Cash (Dec-21) 783 M A M O RT I Z AT I O N throughout the year FFO (2021) 702 M SCHEDULE (Dec-21) on December 31, 2021 2022 536 M > Gross debt: R$3,267 M > The early redemption of Multiplan’s 8th 2023 520 M and 9th issuance of simple and non- >
Slide 16: Capital structure: lowest cost of debt spread
Capital structure Lowest cost of debt spread to Selic since Sep-17 Average cost of debt per index (p.a.) DEBT INDEXES Index Average Cost of Gross (Dec-21) Dec-21 Performance Interest Rate¹ Debt Debt (R$) TR 0.05% 8.31% 8.36% 412.1 M CDI 9.25% 0.67% 9.92% 2738.0 M 3.6% Others² 10.06% 0.00% 10.06% 116
Slide 17: Dividends and IoC payout evolution
Dividends and IoC payout evolution Record-high payout in 2021 Shareholder remuneration distribution (Dividends and Interest on Capital) 64.7% 68.3% 62.6% 68.5% 57.8% 50.0% 47.5% 50.0% 50.0% 50.0% 32.1% 29.4% 36.0% 25.0% 295.0 280.0 270.0 260.0 240.0 225.0 125.0 135.0 155.0 102.9 100.0 95.0 60.9 20.1
Slide 18: Multiplan's digital strategy
Multiplan’s digital strategy Expand knowledge about customers, develop new features that generate recurrence and apply intelligence to generate results Establish a direct & other functionality for recurrence and Data to generate channel with the results data customer 18
Slide 19: Multi: 700,000 unique active users in December
Multi: 700,000 unique active users in December, 2 million downloads since its inception MultiVocê is launched MultiVocê is launched Payment for parking at ParkShoppingBarigüi at BarraShopping and fees via Multi in all and BarraShoppingSul ShoppingVilaOlímpia Sales via Whatsapp and collection by driv
Slide 20: Greater understanding of the customer journey
Greater understanding of the customer journey At the end of the year1, 34% of sales were registered in Multi Creating “personas” generates business value > Statistical analysis on database > Customer grouping Purchase in Apparel Followed by a purchase in And finally going to the Miscellaneous Superm
Slide 21: Multiplan's newest and most modern shopping center
Multiplan’s newest and most modern shopping center 21
Slide 22: Located in one of the fastest growing regions in Rio de Janeiro
Located in one of the fastest growing regions in Rio de Janeiro Over 700,000 inhabitants Source: consumoteca.com.br 22
Slide 23: Vision of the mall of the future reflected in its mix
Vision of the mall of the future reflected in its mix...... 33% 25% 25% 13% 4% Apparel Miscellaneous Services Food Court & Home & Office Gourmet Area Figures reflect ParkJacarepaguá’s GLA distribution , per segment in November 2021. 23
Slide 24: ...and its architecture
850 sq.m amphitheatre ...and its 150 sq.m outdoor architecture screen Children’s playground extending over 2,000 sq.m Over 1,000 sq.m-wide pet park 600 sq.m ice-skating rink Multipurpose events center capable of hosting 1,000 people 24
Slide 25: A mall that exceeds sustainability
LEED2 Certificate Effluent treatment station generating a 35% reduction in water use High performance glasses which help maintain inner temperature control 3,686 solar pannels capable of generating 2,122 MWh of energy per year A mall that exceeds 100% dimmable LED lighting, generating 20% in energy
Slide 26: ParkJacarepaguá's performance in 4Q21
ParkJacarepaguá’s performance in 4Q21 already demonstrates its success R$80.6 million in sales Over 10,000 visitors at the ice-skating rink HotZone registered over 14,000 visitors More than 215,000 vehicles Note: 4Q21 numbers. 26
Slide 27: Golden Lake
18 residential towers 250,000 sq.m R$4.0 billion PSV1 The largest project in private area of Golden Lake Multiplan's landbank 1 PSV refers to the Potential Sales Value. 27
Slide 28: Golden Lake – Phase 1
Golden Lake – Phase 1 Tower 1 penthouse Tower 1 – Lake Victoria Tower 2 – Lake Victoria Launching: Oct-21 Main Lake Delivery: Dec-24 1st phase : 4 towers 94 units Sales: 42% of private area¹ 34 thousand sq.m R$530 million PSV2 equivalent to R$207 M of the PSV2 Tower 4– Lake Victoria Tower 3 – Lake V
Slide 29: Approximately 200,000 sq.m in potential expansions
Approximately 200,000 sq.m in potential expansions Illustration of expansion at VillageMall Illustration of expansion at ParkShopping São Caetano Illustration of expansion at JundiaíShopping Illustration of expansion at MorumbiShopping 29
Slide 30: 716,000 sq.m landbank synergies from mixed-use projects
Synergies stemmed from mixed-use projects 716,000 sq.m in landbank ✓ Regional appreciation ✓ Constant customer flow Shareholder ✓ Convenience value creation ✓ Prices that reflect its uniqueness ✓ Urban development The 716 sq.m area refer to owned land lots surrounding Multiplan’s malls in 4Q21. Mult
Slide 31: Future potential mixed-use projects
Future potential mixed-use projects Illustration of mixed-use project in ParkShoppingBarigüi Illustration of mixed-use project in BarraShoppingSul Illustration of mixed-use project in VillageMall Illustration of mixed-use project in RibeirãoShopping 31
Slide 32: Fair Value
Fair Value The enterprise value is below the estimated Replacement Cost and Fair Value, leading to one of the lowest EV/Fair Value multiples in the last ten years Multiplan’s value EV1 / Fair Value2 22.9 1.0 0.97 1.02 -20.4% +67.2% +16.0% 15.9 14.1 13.7 0.82 13.7 0.60 11.2 0.56 R$ billion 0.57 Dec-2
Slide 33: MULT3
MULT3 Number of individual investors continues to grow 153.4 142.6 Free-float equivalent to 45.2% AVERAGE DAILY TRADED VOLUME (R$M) ) 79.9 of the shareholder base, 55.6 In the last five years, the average 52.1 of which 49.7% are daily number of trades has increased 39.5 international investors by mo
Slide 34: ri@multiplan.com.br
+55 21 3031-5400 ri@multiplan.com.br 34
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