14 slides from Multiplan Empreendimentos Imobiliarios Sa's earnings presentation, Jun 30, 2020
Slide 1: Conference Call Presentation
CONFERENCE CALL PRESENTATION BarraShopping, 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: Main initiatives for cash preservation
Main initiatives for cash preservation • Revision of processes and cost reduction policies retracted G&A expenses by 67.7% in 2Q20 and 40.7% in1H20; • Postponement of cash disbursements, including IoC, greenfields, expansions, and renovations; • Two debentures issuances in Jul-20, adding up R$400.0
Slide 4: Considers operations status on the indicated day
Considers operations status on the indicated day Operating; Operating with restrictions; Closed, or only essential services operating.
Slide 5: Despite the severe sales decline in 2Q20, sales per operating hour exceed 2Q19
Despite the severe sales decline in 2Q20, sales per operating hour exceed 2Q19 Operating As a % of Operating hours¹, tenants’ sales and malls’ rental Tenants’ sales (100%) 2Q20 2Q19 hours¹ vs. 2Q19 2Q19’s sales revenue – 2Q20 as a % of 2Q19 BH Shopping 14.3 M 293.2 M 0.0% 4.9% 17.8% RibeirãoShopping
Slide 6: Net revenue evolution in 2Q20 (R$ M)
-20.9% NET REVENUE 324.9 -198.8 EVOLUTION IN +38.6 257.0 2Q20 (R$ M) +160.8 -49.7 Others¹ (R$ M) Rent -18.7 214.1 Parking 180.1 Services Straight Net revenue -line Net revenue 2Q19 2Q20 70.3% 65.9% -31.1% EBITDA EBITDA 110.8 -28.2 2Q19 2Q20 COSTS AND EXPENSES -15.5 +8.1 -3.3 +4.3 76.3 EVOLUTION IN G
Slide 7: Lower expenses and proactive contingency measures elevate the EBITDA margin
Lower expenses and proactive contingency measures elevate the EBITDA margin (vs. 2Q19) and mitigate the impact over Net Income NOI EBITDA FFO NET INCOME (Net Operating Income) (Funds From Operations) 197 181 16 71 R$ M R$ M R$ M R$ M 81.3 % MARGIN 70.3 % MARGIN 6.2 % MARGIN 27.5 % MARGIN -32.7% vs.
Slide 8: NOI, EBITDA, FFO and Net Income 1H20
NOI EBITDA FFO NET INCOME (Net Operating Income) (Funds From Operations) 495 524 261 249 R$ M R$ M R$ M R$ M 87.0 % MARGIN 90.0 % MARGIN 44.8 % MARGIN 42.6 % MARGIN -13.2% vs. 1H19 +18.0% vs. 1H19 -13.1% vs. 1H19 +20.0% vs. 1H19 ADJUSTED¹ ADJUSTED¹ ADJUSTED¹ -13.2% +6.6% -26.4% -3.0% 477.2 508.7 332
Slide 9: Conclusion of Diamond Tower sale generates a 22.5% unleveraged IRR
Conclusion of Diamond Tower sale generates a 22.5% unleveraged IRR DIAMOND TOWER: • GLA: 36,919 sq.m in 18 floors; • Revenue: R$47.0 million (LTM¹). 810.0 M OFFER NUMBERS: 22.5% unleveraged IRR 29.6% leveraged • Price: R$810 million (R$21,941/sq.m); DIAMOND TOWER • Guaranteed Minimum Income (GMI): 2
Slide 10: R$1.1 B cash position, not considering Diamond Tower sale
R$ Cash (Jun-20) 1,100 M R$1.1 B cash position, not FFO (LTM) 664 M D E BT considering Diamond Tower sale Jul to Dec 2020 462 M 60 M 521 M A M O RT I Z AT I O N SCHEDULE > Gross debt: R$3,840 M 2021 440 M 132 M 573 M on June 30, 2020 > Average cost p.a.: 3.53% 2022 698 M 94 M 791 M Until the end of
Slide 11: Average cost of funding resets historical low
Average cost of funding DEBT AVERAGE INTEREST PER INDEX (p.a.) resets historical low, Index Average Cost of Gross following additional Selic Performance Index Rate¹ Funding Debt (R$) rate cut and new debts TR 0.00% 6.75% 6.75% 764.4 M CDI 2.25% 0.42% 2.67% 3,036.0 M Others² 3.17% 3.87% 7.04% 39.3 M
Slide 12: Number of individual investors soars, fueling greater daily trading volume
+78% 25,408 Daily traded value Daily num. of trades Number of individual AVERAGE DAILY 14,269 151.3 M investors soars, NUMBER OF TRADES 7,943 AND TRADED VOLUME (R$) fueling greater daily 4,406 4,357 79.9 M In three years, the average trading volume daily number of trades has 52.1 M 55.6 M 39.5 M inc
Slide 13: Fair Value and Enterprise Value in recent periods
Fair Value¹ and Enterprise Value² in recent periods Fair Value Enterprise Value (EV) Enterprise Value (EV) / Fair Value 22.4 B 22.2 B 22.4 B 22.0 B 21.9 B 20.8 B 21.7 B 16.8 B 19.5 B +38% 18.9 B 16.6 B 15.9 B 15.1 B 14.1 B 0.99x 1.02x 0.85x 0.87x 0.71x 0.64x 0.72x Dec-18 Mar-19 Jun-19 Sep-19 Dec-19
Slide 14: ri@multiplan.com.br
+55 21 3031-5600 ri@multiplan.com.br