Multiplan Empreendimentos Imobiliarios Sa · BMFBOVESPA:MULT3
Multiplan Empreendimentos Imobiliarios Sa — Q4 2020 Earnings Presentation
32 slides from Multiplan Empreendimentos Imobiliarios Sa's earnings presentation, Dec 31, 2020
Slide 1: Conference Call
CONFERENCE CALL ParkJacarepaguá, RJ
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", "expect
Slide 3: Monthly operating hours, tenants' sales, and malls' rental revenue
Monthly operating hours¹, tenants’ sales, and malls’ rental revenue (2020 as a % of 2019), with successive improvements since the 2 nd quarter % of tenants' sales 97.0% 93.8% 89.8% % of malls' rental revenue % of operating hours¹ 83.3% 88.5% 85.5% 58.4% 55.5% 51.7% 15.3% 17.8% 8.4% 1Q20 2Q20 3Q20 4Q
Slide 4: Sales improved month by month since April
Sales improved month by month since April 1,910.8 M Tenants' sales (R$) +48.6% % of operating hours¹ +16.8% 1,286.0 M +23.5% 1,100.6 M 891.1 M 807.2 M 85.4% 90.5% 89.7% 657.9 M 73.9% 524.9 M 59.9% 377.2 M 57.5% 21.8% 21.9% 140.6 M 70.0 M 3.6% 0.0% Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct
Slide 5: Actions aimed at preserving financial health of tenants
ESG Actions aimed at preserving financial health of tenants RENT COMMON CHARGES • full rent reduction • 50% reduction over Malls for tenants during condominium charges closed closure of shopping • up to 100% reduction mall operations over contributions to marketing funds Start of mall • case-by-case
Slide 6: Operational indicators reflect the effectiveness of the strategy adopted
Operational indicators reflect the effectiveness of the strategy adopted Higher sales, along with reduced condominium Lower occupancy cost reduces the net charges, lower the occupancy cost: delinquency rate: 12.1% 12.0% 11.8% 11.6% 11.6% 11.8% 16.3% 4.4% 4.5% 4.3% 4.2% 3.1% 4.1% 8.5% 7.2% 7.7% 7.6%
Slide 7: Tenants looking for more efficient locations migrate to dominant assets
Examples of benefits of a store Tenants looking for more efficient in Multiplan malls: locations migrate to dominant assets • Central and convenient locations • Store as a point of interaction and experimentation with clients Inflection point in the occupancy rate and biggest • Brand exposure to lar
Slide 8: Mall experience: fun, services, nature, arts and culture
ESG Fun Services Nature Arts and culture Omnichannel Interactivity and experimentation Events
Slide 9: Mall events and activities
Dogs park at BarraShopping Cycling tour at ParkShoppingSãoCaetano ESG Blood donation campaigns BarraCadabra at BarraShoppingSul Ice skating at ParkShopping Canoas
Slide 10: ESG
ESG
Slide 11: ESG
ESG
Slide 12: New initiatives allow greater interaction between physical and digital retail
ESG New initiatives allow greater interaction between physical and digital retail 1. Experimentation 2. Sale 3. Delivery Live commerce using influencers and store inventory from Marketplace through Whatsapp Store directory on websites with drive-thru, delivery Multiplan malls and app purchase option
Slide 13: Broad delivery possibilities support tenants and boost sales
ESG Broad delivery possibilities support tenants and boost sales Support to drive-thru sales at Integration of new tenants to Multi superapp shopping mall parking lots: and other sales channels:
Slide 14: Efficiency gains outweigh revenue reduction, leading to Net Income growth
Efficiency gains outweigh revenue reduction, leading to Net Income growth in the period NOI EBITDA FFO NET INCOME (Net Operating Income) (Funds From Operations) 254 149 197 147 R$ M R$ M R$ M R$ M 84.2 % MARGIN 49.3 % MARGIN 65.2 % MARGIN 48.7 % MARGIN -23.8% vs. 4Q19 -41.1% vs. 4Q19 -14.9% vs. 4Q19
Slide 15: Diamond Tower sale contributes to record results, with FFO exceeding R$1 billion
Diamond Tower sale contributes to record results, with FFO exceeding R$1 billion NOI EBITDA FFO NET INCOME (Net Operating Income) (Funds From Operations) 953 1,377 1,047 964 R$ M R$ M R$ M R$ M 86.0 % MARGIN 72.2 % MARGIN 54.9 % MARGIN 50.6 % MARGIN -20.6% vs. 2019 +47.7% vs. 2019 +48.8% vs. 2019 +1
Slide 16: Distribution maintained at recent years' levels
Distribution maintained at recent years’ levels Dividends (R$ M) IoC (R$ M) Payout 64.7% 68.3% 62.6% 50.0% 47.5% 50.0% 50.0% 50.0% 57.8% 36.0% 32.1% 25.0% 29.4% R$270 million of 280.0 270.0 260.0 IoC announced at 240.0 225.0 the end of 2020 to be paid in 2021 135.0 102.9 125.0 155.0 100.0 95.0 60.9
Slide 17: Cash position over R$1 billion
R$ Cash (Dec-20) Cash position 1,235 M FFO (12M) over R$1 billion 1,047 M D E BT 2021 397 M 135 M 532 M A M O RT I Z AT I O N > Gross debt: R$3,378 M 2022 642 M 95 M 736 M SCHEDULE > Average cost p.a.: 3.19% 2023 512 M 26 M 539 M on December 31, 2020 2024 514 M On October 23, 2020, the > Net debt: R
Slide 18: Liability management leads to average cost of debt at 3% p.a.
Liability management throughout the year leads to average cost of AVERAGE COST OF DEBT PER INDEX (p.a.) debt at 3% p.a. level Index Average Cost of Gross Performance Index Rate¹ Debt Debt (R$) TR 0.00% 5.49% 5.49% 460.4 M EVOLUTION OF CDI 2.00% 0.72% 2.72% 2,879.3 M D E BT I N D E X E S Others² 7.06
Slide 19: ParkJacarepaguá: 39,000 sq.m of GLA
ESG 39,000 sq.m of GLA 249 operations Opening 4Q21 Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2.
Slide 20: ParkJacarepaguá: leisure and entertainment options
ESG Indoor and outdoor amusement parks 6 stadium movie theaters Mixed-use events centers Exclusive restaurants Ice skating rink Supermarket Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2.
Slide 21: Expansion: 16,000 sq.m of GLA, medical center
ESG 16,000 sq.m of GLA 93 operations Medical center Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2.
Slide 22: Expansion: 4,400 sq.m of GLA, new restaurants
ESG 4,400 sq.m of GLA 49 operations New restaurants Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2.
Slide 23: Development in phases: 250,000 sq.m of private area
ESG 250,000 sq.m of private area Development in phases 18 towers Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2.
Slide 24: ESG
ESG Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2.
Slide 25: 34,000 sq.m in 1st phase
ESG 34,000 sq.m in 1st phase Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2.
Slide 26: More than 820 thousand sq.m of landbank
ESG Project illustration at BarraShoppingSul Project illustration at RibeirãoShopping Project illustration at ParkShoppingBarigüi Project illustration at VillageMall More than 820 thousand sq.m of landbank Approximately 1 million sq.m in potential area for sale Source: Multiplan. Artist’s rendering
Slide 27: Environmental
ESG Environmental Practices that minimize the environmental impact and optimize efficiency, reducing operational costs Photovoltaic panels - expanding a successful strategy Energy savings and reduced CO2 emissions Photovoltaic plant in Minas Gerais to supply VillageMall ✓ New photovoltaic plant at P
Slide 28: Social
COVID-19 testing at ParkShopping, DF ESG Social Support to tenants and society in mitigating the impacts of the Covid-19 pandemic Measures to support society ✓ Donation of 100 thousand masks, 10 thousand tests, cleaning materials, among others ✓ Shopping mall parking lots used as drive thru for coll
Slide 29: Governance
ESG Governance Develop and promote transparency, ethics and corporate responsibility Board of Directors ✓ Mr. Gustavo Franco election as independente member Diversity ✓ Greater representation of women in leadership positions ✓ 43% of leadership positions are women1 ✓ 12 malls, out of a total of 18,
Slide 30: Number of individual investors and traded volume keep increasing
Daily traded volume +67% 23,770 Daily num. of trades Number of individual AVERAGE DAILY 14,269 142.6 M investors and traded NUMBER OF TRADES 7,943 AND TRADED VOLUME (R$) volume keep increasing 4,406 4,357 79.9 M In three years, the average daily number of trades has increased by 52.1 M 55.6 M 39.5 M
Slide 31: Execution over the past few months
Execution over the past few months SHARES IN TREASURY: 7,322,845 on December 31, 2020 2,500,000 R$ 35.00 2,125,000 2,000,000 R$ 31.00 1,500,000 R$ 27.00 1,175,000 1,000,000 780,700 950,000 24.04 R$ 23.00 22.01 21.82 20.86 500,000 R$ 19.00 19.05 30,000 0 R$ 15.00 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Ju
Slide 32: ri@multiplan.com.br
+55 21 3031-5600 ri@multiplan.com.br
Multiplan Empreendimentos Imobiliarios — Q4 2020 Earnings Presentation on 6ix