Multiplan Empreendimentos Imobiliarios Sa · BMFBOVESPA:MULT3
Multiplan Empreendimentos Imobiliarios Sa — Q2 2023 Earnings Presentation
29 slides from Multiplan Empreendimentos Imobiliarios Sa's earnings presentation, Jul 26, 2023
Slide 1: 2Q23 Results Conference Call
2Q23 Results Conference Call Contact the Investor Relations Team at: ri.multiplan.com.br ri@multiplan.com.br +55 21 3031-5400
Slide 2: Disclaimer
Disclaimer This document may contain prospective commercial negotiations or other technical and and also published in English solely in order to statements and goals, which are subject to risks economic factors. These projects may be altered in comply with Brazilian regulations, notably the and unce
Slide 3: 2022 Annual Sustainability Report
2022 Annual Sustainability Report ESG highlights RibeirãoShopping Inauguration of the 43% of women 100+ initiatives Holocaust Museum, in the Company’s through the social hub workforce promoting tourism (Mutliplan’s headquarters + “Multiplique o Bem” and education malls) 2022 Sustainability Report Re
Slide 4: 2022 Annual Sustainability Report
2022 Annual Sustainability Report ESG highlights Environmental Social Governance 17,000 tons 100+ New Code of social actions Conduct of CO 2 emissions reduction due to solar energy 1.5+ million New Ethics Comittee R$9.0 million of people directly benefited by social projects Created after the revisi
Slide 5: ESG: 2Q23 highlights
ESG: 2Q23 highlights Initiatives that bring value to the community The Company started new classes of the Schooling Course, which offers its employees and tenants the opportunity to complete elementary and high school free of charge. The project has already contributed to the education of 600 studen
Slide 6: ESG – 2Q23 highlights
ESG – 2Q23 highlights 247 Initiatives that bring value to the community social events ParkShoppingBarigüi became the first shopping center in Multiplan promoted an awareness campaign among its Paraná to receive the Friend of the Autistic Person seal, employees with the purpose of teaching about whic
Slide 7: ESG: 2Q23 highlights
ESG: 2Q23 highlights Initiatives that bring value to the community DiamondMall Multiplan's malls are joining Malls in the Company's Multiplan is conducting a series the warm clothing portfolio constantly host pet of training sessions in its offices campaigns. In 2023, until the adoption fairs. and m
Slide 8: Awards and recognition
Abrasce Awards: Multiplan received eight awards in five Awards and categories, making this edition the one with the highest number of recognitions ever received by the Company. recognition In 2023, for the eighth consecutive year, Multiplan was ranked in all categories of the Latin America real esta
Slide 9: Multi, the superapp
Multi, the superapp Constantly improving digital strategy A more scalable loyalty “Acesso Multi” New features program Multi: ~4.3 million accumulated downloads $ Medical Center Direct Whatsapp contact Online parking payment directory STORE between customers and tenants Stores and restaurants Shoppin
Slide 10: MultiVocê
MultiVocê A relationship program with millions of customers The unification of Multi and MultiVocê brings millions of customers to the program Discount coupons as benefits of MultiVocê New Silver category BarraShoppingSul “MultiVocê” program 10
Slide 11: “Acesso Multi”
“Acesso Multi” “Acesso Multi” Even more innovative, now with “free flow” system to enter malls Unprecedented system in Brazil Free flow system already launched in 5 malls Monthly roll-out of malls adopting the new system More convenience for customers More data points on customer behavior 11
Slide 12: The Company seeks, through Multi, to make the customer journey smooth
The Company seeks, through Multi, to make the customer journey as smooth and pleasurable as possible. RibeirãoShopping MorumbiShopping ParkShopping 12
Slide 13: Sales: 5.8% growth over 2Q22 and 36.3% vs. 2Q19
Sales: 5.8% growth over 2Q22 and 36.3% vs. 2Q19 Sales in Jul-23¹ grew 10.9% vs. Jul-22 Quarterly tenants’ sales (R$) July tenants’ sales +36.3% +10.9% +5.8% 136.5% 5.2 B 4.9 B 124.0% 3.8 B 98.6% 2Q19 2Q22 2Q23 Jul-21 as a Jul-22 as a Jul-23¹ as a % of Jul-19 % of Jul-19 % of Jul-19 ¹ Preliminary sal
Slide 14: More and more events
Occupancy cost More and more 20.7% events 6.2% 14.3% 13.3% 13.6% 14.9% 12.8% 247 events in 2Q23 8.2% 7.5% 9.9% 8.6% 8.7% 14.5% 5.3% 4.4% 4.7% 4.9% 6.7% 2Q19 2Q20 2Q21 2Q22 2Q23 Series average Rent as sales % Common expenses as sales Net deliquency rate 16.3% -138 b.p. 2Q23 vs. 2Q22 5.7% Events: +45.
Slide 15: Record comercial activity
Record comercial activity All-time high quarterly turnover +206 b.p. 4.8% 2.7% 1.0% 0.2% 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 3Q21 1Q22 3Q22 1Q23 Average occupancy rate High demand f
Slide 16: Real SSR growth of 3.6% in 2Q23
Real SSR growth of 3.6% in 2Q23 28.00% Indexes and SSR analysis1 23.00% 18.00% Real SSR2: +3.6% 13.00% 9.4% 8.00% 5.6% 3.2% 3.00% Jun-23 -2.00% -7,4% IPCA IGP-DI IGP-DI SSR¹ (LTM) (LTM) adjustment effect (2Q23 (2Q23 vs. 2Q22) vs. 2Q22) ¹SSR refers to Same Store Rent. 2 Real SSR refers to the Same St
Slide 17: Reduced costs and higher margins
vs. 2T22 vs. 2T22 vs. 2T22 vs. 2T22 Reduced costs and higher margins Growth on top of growth +43.2 % +28.4 % +23.6 % +13.8 % NET NOI FFO EBITDA INCOME (Net Operating Income) (Funds From Operations) 419 286 369 247 R$ M R$ M R$ M R$ M 88.7 % MARGIN 57.0 % MARGIN 73.5 % MARGIN 49.2 % MARGIN Data refer
Slide 18: Capital: lowest leverage in 11 years
Capital: lowest leverage in 11 years Net Debt/EBITDA at 1.40x (Jun-23) DEBT Cash (Jun-23) 721 M AMORTIZATION Gross debt: R$2,721.6 M SCHEDULE FFO (Jun-23 LTM) 1,138 M on June 30, 2023 Average cost p.a.: 14.00% (R$) 2H23 176 M Net debt: R$2,000.8 M 2024 424 M Net debt / EBITDA: 1.40x 2025 452 M 2026
Slide 19: Capital structure
Capital structure Cost of debt close to the Selic rate Debt indexes Cost of debt spread to Selic (b.p.) (Jun-23) 119 3.4% 85 48 6 25 12.7% 83.9% -21 Dec-19 Dec-20 Dec-21 Dec-22 Mar-23 Jun-23 TR CDI Others1 ¹ ‘Others’ include IPCA and other indexes. Weighted average¹ cost of debt (% p.a.) 14.30% 13.8
Slide 20: Fair Value
Fair Value Enterprise Value (EV) 46.8% below Fair Value Governança corporativa Multiplan’s value EV¹/ Fair Value² +46.8% 27.3 1.02 1.0 -14.0% 18.6 18.6 +26.1% 16.6 16.0 0.84 0.68 13.2 0.56 0.57 0.60 R$ billion Jun-22 Jun-23 EV¹ Fair Value² EV¹ Replacement Cost³ Market value ¹Enterprise Value (EV): M
Slide 21: Capital allocation
DiamondMall Capital allocation R$940 million allocated in the last twelve months Acquisitions R$170.0 million invested in the purchase of 24.95% stake in DiamondMall (Mar-23) R$76.0 million to be invested in the purchase of 4.1% stake in RibeirãoShopping (Jul-23) IoC Share Capex (Interest on Capital
Slide 22: Reinvesting to excel
Rooftop - BH Shopping Reinvesting to excel Case study: BH Shopping BH Shopping, one of the portfolio’s most dominant malls, was object of extensive renovation process – from landscaping to food-courts and restrooms overhaul - carried out in 2019 and in 1Q20. 2Q23 vs. 2Q18¹ Sales: +52.2% Rent per sq.
Slide 23: Focusing on our assets
Focusing on our Renovations Modern architecture assets Mainly related to improvements in New York City Center, BarraShoppingSul and Creating value with different strategies DiamondMall Mall expansions 247 Increasing attraction power events DiamondMall and ParkShoppingBarigüi represented 92% of the e
Slide 24: Dividends and IoC evolution
Dividends and IoC evolution R$495.0 million distributed in the last 12 months Shareholder remuneration distribution (R$ M) 59.2% 64.7% 68.3% 62.6% 68.5% 57.5% 495.0 50.0% 50.0% 50.0% 50.0% 57.8% 51.0% 47.5% 32.1% 29.4% 36.0% 25.0% 420.0 270.0 295.0 260.0 280.0 225.0 240.0 220.0 183.7 149.0 174.9 135
Slide 25: MULT3 share buybacks and investor base
MULT3 In Jun-23, the Company's Board of Directors approved a new buyback program of up to Share buybacks: end of one 14,000,000 shares, until Jun-24. program and start of another Investor base¹ Share Buyback Program evolution (Percentage of the free-float) 33.10 27.67 23.53 21.90 26.8% 32.0% 28.1% 3
Slide 26: Approximately 200,000 sq.m in potential expansions
Approximately 200,000 sq.m in potential expansions GLA: 14,000 sq.m | Over 80% leased¹ | Opening: 2H24 Illustration of the expansion project at ParkShoppingBarigüi. ¹ In June 2023. GLA: 4,393 sq.m | Opening: 2H24 Illustration of the expansion project at MorumbiShopping Illustration of the expansion
Slide 27: Landbank creating value through a mix of strategies
Landbank creating value through a mix of strategies Golden Lake – Phase 1 Launching: Oct-21 2Q23 revenue: R$17.8 million Delivery: Dec-24 2Q23 gross margin: 26.9%³ 1st phase: 4 towers Sales: 53.2% 94 units of private area¹ 34,000 sq.m Golden Lake, construction in Jun-23 equivalent to R$283 M R$560 m
Slide 28: 795,100 sq.m of total private area for sale
795,100 sq.m of total private area for sale Illustration of mixed use project at ParkShoppingBarigüi Illustration of mixed use project at RibeirãoShopping Illustration of mixed use project at BarraShoppingSul 28
Slide 29: Investor Relations
Investor Relations ri@multiplan.com.br +55 21 3031-5400
Multiplan Empreendimentos Imobiliarios — Q2 2023 Earnings Presentation on 6ix