Multiplan Empreendimentos Imobiliarios Sa · BMFBOVESPA:MULT3
Multiplan Empreendimentos Imobiliarios Sa — Q3 2021 Earnings Presentation
30 slides from Multiplan Empreendimentos Imobiliarios Sa's earnings presentation, Oct 27, 2021
Slide 1: Results Conference Call 3Q21
RESULTS CONFERENCE CALL 3Q21 BarraShopping celebrated its 40-year anniversary in October
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
ESG To see Multiplan's 2020 Annual Report, click here 2020 Annual Report published in September The Report was developed in accordance with the GRI1 and SASB2 methodologies and its indicators were correlated with the UN SDGs3. ✓ 33% reduction in energy consumption ✓ 61% drop in Scope III emissions 2
Slide 4: Continuity of ESG initiatives
ESG Continuity of ESG initiatives implemented in the past together with new projects ✓ Continuing initiatives: Vaccination campaigns against Covid-19 in five shopping centers and Multiplan medical centers Blood donation campaigns in shopping centers in Rio de Janeiro Vaccination site at RibeirãoShop
Slide 5: Focus on the environment and best governance practices
ESG Continuously acting with a focus on the environment and best governance practices ✓ Golden Lake: Lake Victoria, Golden Lake’s 1st phase, is in the ✓ 4.0 Maintenance- Chilled water management: pilot process of obtaining the EDGE1 certification, which focuses carried out at MorumbiShopping, to imp
Slide 6: Operating hours back to 100% in September
Operating hours back to 100% in September Since August 21st, all malls have been operating 100% of the time until October 28 th, although still operating with restrictions Monthly operating hours¹ 100.0% 97.0% 99.2% 100.0% 90.5% 89.7% 87.4% 87.6% 87.1% 85.4% 77.7% 73.9% 57.5% 59.9% 41.0% 21.8% 21.9%
Slide 7: Malls' rental and sales revenues already surpass 2019
Malls’ rental and sales revenues already surpass 2019 Rental revenue 19.7% above 2019, with sales in Oct/21 109.7% 1 vs 2019 Quarterly operating hours2, tenants’ sales, and malls’ rental revenue 119.7% 109.7% 102.0% 93.8% 97.0% 98.3% 89.8% 100.0% 83.3% 98.7% 85.5% 77.2% 78.4% 88.5% 64.9% 58.4% 55.5%
Slide 8: Mall performance exceeds 2019 and all restrictions
Mall performance exceeds 2019 and all restrictions 100% SSR1 128.4% Rent 2 119.7% NOI1 107.8% ex- Straight-line FFO1 102.6% SSS1 101.5% Sales1 98.3% Oper. hours3 98.7% Capacity4 85.7% Events1 5 45.0% ¹ 3Q21 vs. 3Q19. 2 Refers to malls' rental revenue only (does not include office towers). 3 Calculat
Slide 9: Tenants' sales in nearly all malls exceeded capacity restrictions
Tenants’ sales in nearly all malls exceeded capacity restrictions 85.7% VillageMall 126.3% ParqueShoppingMaceió 122.4% Sales drivers ParkShoppingBarigüi 109.4% ParkShoppingCanoas 104.8% BarraShopping 103.3% BH Shopping 102.7% End of operating hours restrictions ParkShoppingSãoCaetano 101.9% End of c
Slide 10: Sustainable increase in rental revenue
Sustainable increase in rental revenue SSR1 of 28.4% vs 2019, with net delinquency rate reduced to 3.9% Occupancy cost breakdown Net delinquency rate and rental revenue 119.7% 97.0% 102.0% 13.2% 12.9% 13.6% 12.8% 77.2% 12.7% 11.8% 4.4% 55.5% 5.5% 5.3% 5.2% 5.0% 4.6% 11.0% 7.7% 7.7% 9.3% 7.9% 7.2% 5.
Slide 11: Flight-to-quality trend
Flight-to-quality trend Examples of benefits of a store in Multiplan’s malls: Tenants looking for more productivity migrate to dominant assets Synergy with a diversified mix creating destination malls Highest QoQ upturn in occupancy rate (+66 b.p.) since 3Q12, leading to the highest turnover in our
Slide 12: Mix of the future
Mix of the future Physical stores increase brand value in several ways, not only through its sales Fashion Sensory experience Diversification Customized Food-hall DIY projects Fashion trends clothing Necessity-driven Authorial cuisine Product customization New habits (home International cuisine cons
Slide 13: Financial results – 3Q21 vs. 3Q19
Financial results – 3Q21 vs. 3Q19 FFO in the quarter exceeds 2019 NOI EBITDA FFO NET INCOME (Net Operating Income) (Funds From Operations) 287 216 177 99 R$ M R$ M R$ M R$ M 88.0 % MARGIN 67.1 % MARGIN 54.8 % MARGIN 30.8 % MARGIN -3.5% vs. 3Q19 -8.1% vs. 3Q19 +2.6% vs. 3Q19 -18.2% vs. 3Q19 13
Slide 14: Financial results – 3Q21 vs. 3Q20
Financial results – 3Q21 vs. 3Q20 Strong results recovery, excluding the sale of Diamond Tower NOI EBITDA FFO NET INCOME (Net Operating Income) (Funds From Operations) 287 216 177 99 R$ M R$ M R$ M R$ M 88.0 % MARGIN 67.1 % MARGIN 54.8 % MARGIN 30.8 % MARGIN +40.8% vs. 3Q20 -69.3% vs. 3Q20 -70.0% vs
Slide 15: Capital structure
Capital structure R$ Reduction of net debt with Cash (Sep-21) 1,180 M strong FFO generation D E BT FFO (LTM) 590 M (Sep-21) A M O RT I Z AT I O N 4Q21 280 M SCHEDULE > Gross debt: R$3,440 M on September 30, 2021 2022 503 M > Average cost p.a.: 7.28% 2023 632 M > Net debt: R$2,265 M 2024 513 M > Net
Slide 16: Capital structure
Capital structure Despite the 150 b.p. increase in the interest rate (Selic), cost of debt rose by only 146 b.p. Average cost of debt per index (p.a.) DEBT INDEXES Index Average Cost of Gross Sep-21 Performace Index Rate¹ Debt Debt (R$) TR 0.00% 7.50% 7.50% 424.0 M CDI 6.25% 85.00% 7.13% 2.905 M Oth
Slide 17: MIND
MIND Digital Transformation Strategy +700 startups analyzed Open innovation +40 startups converted SINCE 2019 1st Phase 2nd Phase 3rd Phase Omni Loyalty and features Establishing a channel generating Leveraging data with customer recurrence and data for value creation SINCE 2018 SINCE 2020 SINCE 202
Slide 18: Omnichannel
“Let’s go to the dogs park, Bob! Then, we can go to the petshop” Omnichannel “Let me get the passcode to unlock the locker” “I’m tired, I’ll pay the parking ticket from the car” Multi: integration of physical and digital experiences Watch the last video of “I will exchange my gift and buy new sneake
Slide 19: OmniMIND
OmniMIND Integrating information from the physical and digital worlds, creating a unique and personalized experience Usage Kmeans Frequency Elbow Recorrence Clustering Flows Data Schemas definitions Profiles Category inference AWS Personalize Model training App profiling Models Gender Result validat
Slide 20: 95% leased, opening on Nov 18th
95% leased Opening on Nov 18th 39,000 sq.m of GLA 236 operations Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2. 20
Slide 21: Indoor and outdoor parks, ice skating rink, movie theaters
October 2021 Indoor and outdoor parks | Ice skating rink 6 stadium movie theaters | Exclusive restaurants | Supermarket 21
Slide 22: ParkShoppingBarigüi – Expansion V
ParkShoppingBarigüi – Expansion V 15,000 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. 22
Slide 23: DiamondMall – Expansion II
DiamondMall – Expansion II 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. 23
Slide 24: Golden Lake – Residential project
Golden Lake – Residential project 250,000 sq.m of private area Developed in phases - 18 towers Total PSV R$4.0 bn Total capex R$2.5 bn Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2. 24
Slide 25: Golden Lake
Golden Lake Complex Corporate and residential towers BarraShoppingSul Golden Lake project Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2. 25
Slide 26: Golden Lake
Golden Lake PSV of R$500 M R$162 M already sold equivalent to 34%1 of private area 1st phase with 34,000 sq.m Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2. 1 Sales accounted for until Octo
Slide 27: Golden Lake
Golden Lake For more information, click below www.bairrogoldenlake.com.br Source: Multiplan. Artist’s rendering for illustrative purposes only, subject to changes without previous notice – please refer to the disclaimer on slide 2. 27
Slide 28: Future mixed use and expansion projects
ESG Future mixed use and expansion projects JundiaíShopping expansion project illustration VillageMall project illustration MorumbiShopping expansion project illustration BarraShoppingSul project illustration More than 750,000 sq.m of landbank, approximately 830,000 sq.m in potential area for sale a
Slide 29: MULT3
MULT3 Number of individual investors continues to increase, becoming the largest investor of the free float since October 152.7 21.9 142.6 MULTIPL AN’S AVERAGE DAILY VALUE -2.1% +60% TRADED VOLUME (R$M) Fair Value² 79.9 60% above 11.7 In the last five years, the average 55.6 11.4 52.1 Enterprise Val
Slide 30: ri@multiplan.com.br
+55 21 3031-5400 ri@multiplan.com.br
Multiplan Empreendimentos Imobiliarios — Q3 2021 Earnings Presentation on 6ix