Multiplan Empreendimentos Imobiliarios Sa · BMFBOVESPA:MULT3
Multiplan Empreendimentos Imobiliarios Sa — Q2 2022 Earnings Presentation
24 slides from Multiplan Empreendimentos Imobiliarios Sa's earnings presentation, Jul 27, 2022
Slide 1: ParkShopping Canoas Results Conference Call 2Q22
ParkShopping Canoas RESULTS CONFERENCE CALL 2Q22
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: ESG: Intensifying social and cultural initiatives
ESG Intensifying social and cultural initiatives Cultural events: The successful Beyond Van Gogh exhibition, which took place at MorumbiShopping, will migrate to BarraShopping and ParkShopping - over 370 thousand tickets sold, world record 2022 ABRASCE Award The Bienal Mineira do Livro book fair was
Slide 4: Welcome to our malls
MorumbiShopping: “Beyond Van Gogh” 40.8% higher sales and 28.0% car flow increase in the quarter (vs. 2019). Welcome to our malls DiamondMall: Local gastronomic fair 32.5% car flow increase on the day of the event 170+ events in the quarter boost people flow and tenants’ sales VillageMall: Valentine
Slide 5: Sales in July steadily increasing vs. 2019
Sales in July¹ steadily increasing vs. 2019 Sales in July¹ up 23.6% vs. 2019, and 23.8% vs. 2021 Quarterly tenants’ sales (R$) Monthly tenants’ sales (as a % of 2019) +28.9% 133.4% 130.5% 4.9 B 123.3% 123.6% +64.5% 120.8% 115.3% 3.8 B 3.0 B 104.9% 0.6 B 2Q19 2Q20 2Q21 2Q22 Jan-22 Feb-22 Mar-22 Apr-2
Slide 6: Double-digit Same Store Sales increase
Double-digit Same Store Sales increase Apparel segment remains a highlight (+46.9% vs. 2019), while Food Court & Gourmet Area and Services segments keep ramping up (+23.9% and +8.1% vs. 2019, respectively) Same Store Sales (SSS) Same Store Sales (SSS) 2Q22 x 2Q19 2Q22 x 2Q21 Anchor Satellite Total A
Slide 7: Strong rent and even stronger sales
Strong rent and even stronger sales Sales outpacing rent, leading to lower delinquency and increasing occupancy Net Delinquency Rate Sales and rent growth 11.0% (2Q22 vs. 2Q21) 64.5% 5.7% 58.5% 4.6% 5.0% 3.9% 4.1% 46.6% 46.6% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 22.3% Occupancy Rate 95.2% 95.3% 95.3% 94.8%
Slide 8: Sustainable growth…
Sustainable growth… Sales and condo efficiencies supporting the 46.6% growth in malls’ rental revenue vs. 2021 and 19.9% real SSR 1 Indexes and rental growth analysis Real SSR1 evolution (vs. 2021) (year-over-year) 46.6% 46.6% 41.7% 22.3% 11.9% 19.9% 11.1% Jun-22 2.4% 1.8% IPCA IGP-DI IGP-DI SSR Mal
Slide 9: …no matter the comparison basis
…no matter the comparison basis 2.5% real growth on top of 2019 levels Indexes and rental growth analysis Real SSR1 evolution (vs. 2019) 61.2% 59.5% 55.6% 49.6% 23.8% 2.4% 1.8% 2.5% Jun-22 IPCA IGP-DI IGP-DI SSR Malls' rental 2018 2019 2020 2Q22 (36M) (36M) adjustment (2Q22 vs. revenue vs. 2Q19 -13.
Slide 10: The value of the store surpasses its sales
The value of the store surpasses its sales Occupancy cost back to historical levels, while stores harvest more value Value > Sales Occupancy cost breakdown 20.7% Location Efficiency Strategic hub for all Economies of scale, the steps of the 14.3% 14.8% ESG approach, omnichannel strategy 13.0% 12.8%
Slide 11: The pursuit of sustainable growth
The pursuit of sustainable growth One of the key challenges is to grow sustainably, considering tenant’s financial health Rent Occupancy Revenue growth +49.6% Rate Common charges optimization 95.3% Higher receivables Occupancy Sustainable Occupancy Cost Cost Delinquency 4.1% Increasing Occupancy Rat
Slide 12: Car flow continuously rising
Car flow continuously rising While parking revenue already surpasses 2019 levels Car flow Parking revenue (as a % of 2019) (as a % of 2019) 95.3% 113.1% 88.7% 86.9% 99.2% 94.4% 80.4% 84.2% 64.9% 59.1% 56.2% 48.3% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 12
Slide 13: Financial results – 2Q22
Financial results – 2Q22 Setting new records NOI EBITDA FFO NET INCOME (Net Operating Income) (Funds From Operations) 369 288 232 173 R$ M R$ M R$ M R$ M 86.2 % MARGIN 65.9 % MARGIN 53.1 % MARGIN 39.5 % MARGIN +25.8% vs. 2Q19 +34.3% vs. 2Q19 +43.9% vs. 2Q19 +49.7% vs. 2Q19 +51.2% vs. 2Q21 +61.3% vs.
Slide 14: Flawless track record
Flawless track record Delivering positive FFO since the IPO FFO historical evolution (R$) +1,553.0% 2020 includes R$519.8 M net income related to the sale of 927.3 M the Diamond Tower in Jul-20 56.1 M 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020¹ 2021 Jun-22 (LTM) 1 Includes
Slide 15: Tactical capital allocation
Tactical capital allocation Strong cash generation and value accretive allocation Figures as of Jun-22 (LTM) (R$ million) 927.3 440.0 346.9 149.0 FFO IoC Capex Share buyback IoC refers to Interest on Capital. FFO refers to Funds From Operations. 15
Slide 16: Capital structure: deleveraging on a fast track
Capital structure: deleveraging on a fast track Net Debt/EBITDA at 2.05x (Jun-22) Cash (Jun-22) 966 M D EBT A M O R T I Z AT I O N FFO (LTM) 927 M SCHEDULE > Gross debt: R$3,194 M on June 30, 2022 Apr-Dec 2022 453 M > Average cost p.a.: 13.27% (R$) 2023 528 M > Net debt: R$2,228 M 2024 398 M > Net d
Slide 17: Capital structure
Capital structure Cost of debt nearly flat to the Selic rate Cost of debt spread to Selic (b.p.) DEBT INDEXES (Jun-22) 112 119 85 48 18 2 3.7% Dec-18 Dec-19 Dec-20 Dec-21 Mar-22 Jun-22 84.1% 12.2% Average cost of debt1 (p.a.) 14.30% 13.80% 11.93% 13.27% TR CDI Others² 11.08% 11.80% 9.73% 9.08% 10.00
Slide 18: Fair Value
Fair Value Enterprise value1 47.5% below fair value2 Multiplan’s value EV1 / Fair Value2 +47.5% 22.7 1.05 -6.4% 1.0 -3.5% 15.4 15.4 16.0 0.91 14.1 13.2 0.68 0.70 0.59 0.61 R$ billion Jun-21 Jun-22 EV¹ Fair Value EV¹ Replacement Cost³ Market value ¹ Enterprise Value (EV): Market Cap + Net debt at the
Slide 19: MULT3
MULT3 Foreign investors’ share on the free-float increased 1,370 b.p. since Dec-21 Investor base1 Share buyback program evolution (Percentage related to free-float) 33.10 20.1% 26.8% 23.53 37.4% 37.0% 21.95 47.9% 50.7% 24.31 18.72 7,198 M 23.63 5,061 M 4,748 M 79.9% 73.2% 62.6% 63.0% 2,800 M 52.1% 4
Slide 20: Multi, the hyperlocal superapp
Multi, the hyperlocal superapp MultiVocê loyalty program in 100% of Multiplan malls Multi: 2.5 million downloads $ Online parking payment Mall map Stores and restaurants “Lápis Vermelho” sale directory > Two categories: Green and Gold Movie and theater tickets Direct Whatsapp contact > Purchases: R$
Slide 21: 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: 51.1% of private area¹ 34,000 sq.m equivalent to R$260 M of the PSV2 R$530 million PSV2 1H22 revenue: R$34.4 M 1H22 gross margin:
Slide 22: 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 22
Slide 23: 716,000 sq.m of landbank for future mixed-use projects
716,000 sq.m of landbank for 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 23
Slide 24: ri@multiplan.com.br
+55 21 3031-5600 ri@multiplan.com.br 24
Multiplan Empreendimentos Imobiliarios — Q2 2022 Earnings Presentation on 6ix