presentation 1q17

8/20/2019 PRESENTATION 1Q17

1/17

1Q17

Conference Call

PresentationBH Shopping, Belo Horizonte


2/17

1Q17

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“, “foresee“, “intend“, "plan“, "predict“, “forecast“, “aim" and similar words are intended to

identify these statements.

Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results,

market share and competitive position may differ substantially from those expressed or suggested by these forward-looking

statements. Many factors and values that may impact these results are beyond the company’s ability to control. The reader/investor

should not make a decision to invest in Multiplan shares based exclusively on the data disclosed on this presentation.

This document also contains information on future projects which could differ materially due to market conditions, changes in laws or

government policies, changes in operational conditions and costs, changes in project schedules, operating performance, demands

by tenants and consumers, commercial negotiations or other technical and economic factors. These projects may be altered in part

or totally by the company with no prior warning.

External auditors have not reviewed non-accounting information.

In this presentation the company has chosen to present the consolidated data from a managerial perspective, in line with the

accounting practices in use until December 31, 2012, as disclosed on the next page.

For more detailed information, please check our Financial Statements, Reference Form (Formulário de Referência) and other

relevant information on our investor relations website ir.multiplan.com.br .

2

http://ir.multiplan.com.br/?idioma=enuhttp://ir.multiplan.com.br/?idioma=enu


3/17

1Q17

Managerial Report

Multiplan is presenting its quarterly results in a managerial format to provide the reader with a more complete perspective on

operational data. Please refer to the company´s website ri.multiplan.com.br to access the Financial Statements in compliance with

the Brazilian Accounting Pronouncements Committee – CPC.

During fiscal year 2012, the Accounting Pronouncements Committee (CPC) issued the following pronouncements that impact the

company´s activities and its subsidiaries, among others: (i) CPC 18 (R2) – Investment in affiliated companies, subsidiaries and in

joint control developments; (ii) CPC 19 (R2) – Combined business. These pronouncements required their implementation for fiscal

years starting January 1st, 2013. Such pronouncements determine, among other issues, that developments controlled jointly be

recorded in Financial Statements via equity pick-up. In this case the company no longer consolidates proportionally the 50% interest

in Manati Empreendimentos e Participações S.A., a company that owns a 75% interest in Shopping Santa Úrsula, and a 50% stake

in Parque Shopping Maceió S.A., a company that owns a 100% interest in the shopping center of the same name. This presentation

adopted the managerial format and, for this reason, does not consider the requirements of CPCs 18 (R2) and 19 (R2). In this

manner, the information and/or performance analyses presented herein include the proportional consolidation of ManatiEmpreendimentos e Participações S.A. and Parque Shopping Maceió S.A. For additional information, please refer to note 8.4 of the

Financial Statements dated March 31, 2017.

3


4/17

1Q17

35,43834,001

30,727

36,49134,941

5.1%4.8%

4.3%

5.1%4.9%

2013 2014 2015 2016 Mar-17(LTM)

4.2% 4.1%3.2%

2.5%

5.6%

1.6%2.3% 2.8%

1.5%

3.2%

1Q16 2Q16 3Q16 4Q16 1Q17

Evolution oftenants’ sales (R$)

Source: Multiplan

Evolut ion of Same Area and SameStore Sales growth (%)

4

Shopping Centers Sales

Breakdown of SameStore Sales per segment in 1Q17

Same Area Sales Same Store Sales

Turnover in GLA (sq.m.) and as % of total GLA (%) SAS and SSS spread (%)

0.7%

1.0%

1.4%

2.6%

2.3%

1Q13 1Q14 1Q15 1Q16 1Q17

SSS Growth Anchor Satellite Total

Food Court & Gourmet - +0.2% +0.2%

Apparel +1.2% +2.4% +1.6%

Home & Office +8.7% +21.4% +17.1%

Miscellaneous -4.1% -1.3% -2.3%

Services +6.1% +18.9% +14.6%

Total +1.1% +4.4% +3.2%

3.0 B3.2 B

1Q16 1Q17

+6.1%


5/17

1Q17

8.1% 7.8% 8.1% 8.1% 8.2% 8.1%

6.0% 5.9% 5.4% 5.8% 5.7% 5.8%

14.0% 13.7% 13.5% 13.9% 14.0% 13.8%

1Q13 1Q14 1Q15 1Q16 1Q17 Fivequarters

Average

Evolution of occupancy cost Evolution of delinquency rate and rent loss

Source: Multiplan 5

Selected Operating Data

Evolution o f shopping center occupancy rate: 1Q13 – 1Q17

Rent as % of Sales Other as % of Sales

97.5%

9 7 . 6

%

9 8 . 1

%

9 8 . 6

%

98.5%

9 8 . 4

%

9 8 . 8

%

9 9 . 0

%

98.6%

9 8 . 4

%

9 8 . 1

%

9 8 . 0

%

97.9%

9 7 . 6

%

9 7 . 4

%

9 7 . 3

%

97.4%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

2.2% 1.9% 1.8%

4.5%

3.0%

3.6%

2.7%

1Q13 1Q14 1Q15 1Q16 1Q17

Gross Delinquency Rate

Net Delinquency Rate

1.8%

1.1%

4Q16 1Q17

Rent Loss


6/17

1Q17

Rent73.8%

Parking14.8%

Services8.1%

Keymoney0.7%

Others ¹2.6%

Source: Multiplan6

Gross revenue breakdown – 1Q17

Gross Revenue Analysis

¹ Others include real estate for sale, straight-line effect and other revenues.

Rental revenue breakdown (R$) and occupancy rate (%)

89.9% 89.5%90.2% 90.6%

91.5%

154.4 M167.9 M

194.2 M 207.2 M 228.5 M

97.5% 98.5% 98.6% 97.9% 97.4%

1Q13 1Q14 1Q15 1Q16 1Q17

Base rent (and as % of total) Merchandising

Overage Average Occupancy Rate (%)


7/17

1Q17

SSR real growth/decline (y/y)Same Store Rent (SSR) growth (y/y)

Source: Multiplan

Evolution of Same Store Rent

Rental revenue growth breakdown (R$)

7

Evolution of Morumbi Corporate’s rental revenue (R$) - LTM

Rental Revenue Analysis

Real SSR Growth:

11.4%

8.0%

11.4%

8.0% 6.8%

10.1% 8.8% 9.2% 9.5%

7.0% 6.8% 6.2%

5.8% 6.0%8.4% 8.1%

8.7%6.8% 7.4% 7.6%

6.7%5.9% 5.8% 5.9% 5.6% 5.2% 4.5% 4.4%

5.9%7.5%

9.3%10.8% 10.7% 9.8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

4.3% 0.6% 3.5% 1.2% 2.7%4.1%0.9% 4.1% 2.4% 2.4% 0.3% -1.7% -2.4%-2.2%-3.3%3.4% -1.0%

207.2 M228.5 M+21.3 M +0.7 M

(-0.7 M)

Rentalrevenue 1Q16

Base rent Overage Merchand. Rentalrevenue 1Q17

+10.2%

+11.3% -11.7% +5.3%

72.5 M76.8 M

81.1 M83.8 M 84.2 M

91.4% 91.4%92.4%

96.2% 96.2%

Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

Rental revenue (LT M) Occupancy rate

+16.2%

x% IGP-DI inflation adjustment on contracts (y/y) x%


8/17

1Q17

8

Evolution of Net Operating Income (NOI) (R$) and margin (%)

¹ Considers shopping center rental and parking revenues.Source: Multiplan

Net Operating Income (NOI)

Evolution of shopping center expenses (R$) and as % of shopping center revenues¹

24.9 M 25.5 M23.0 M

32.1 M31.0 M

13.5% 12.6%9.7%

12.7%11.3%

1Q13 1Q14 1Q15 1Q16 1Q17

-3.6%

229.3 M251.2 M

87.1% 88.6%

1Q16 1Q17

+9.5%

527.4 M

644.0 M

707.8 M

879.6 M

944.9 M986.5 M

88.8% 88.7% 84.6%

88.1% 88.8%86.8%

Mar-12 (LTM) Mar-13 (LTM) Mar-14 (LTM) Mar-15 (LTM) Mar-16 (LTM) Mar-17 (LTM)

CAGR: +13.3% +4.4%


9/17

1Q17

91 Share-based compensations account was not consideredSource: Multiplan

Financial Results

EBITDA (R$) Net Income (R$) FFO (R$)

198.8 M187.3 M

100.0M

120.0M

140.0M

160.0M

180.0M

200.0M

220.0M

.

.

1Q16 1Q17

-5.8%

+4.6% 213.5 M204.1 M

70.1 M

54.3 M

1Q16 1Q17

-22.5%

+6.7% 80.4 M75.4 M

114.6 M

92.7 M

1Q16 1Q17

-19.2%

127.2 M+5.3%120.9 M

.

.

.

.

.

.

.

.

.

Adjusted Consolidated EBITDA ¹

.

.

.

.

.

.

.

.

.

Adjusted Net Income ¹

.

.

.

.

.

.

.

.

.

Adjusted FFO ¹

Net Income evolution breakdown (R$)

70.1 M54.3 M

+9.4 M

+10.6 M +0.0 M(0.1 M)

(20.8 M)(8.7 M)

(6.2 M)

-0.0% -12.6% +392.1% +17.7% +15.8% -26.4% -81.2%

Net income

1Q16

Net revenue Op erating

expenses

Share-based

compensations

Financial results Depreciation

and amortization

Income tax and

social

contribution

Minority interest Net income

1Q17

-22.5%


10/17

1Q17

10.41%10.50% 10.54%

10.96%11.53%

12.29%12.81% 13.09%

13.22% 13.23% 13.50% 13.18%

12.18%10.75%

11.00%11.00%

11.75%12.75%

13.75% 14.25% 14.25% 14.25% 14.25% 14.25% 13.75%

12.25%

Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

CDI

52.2%

CDI

64.2%

TR

40.4%

TR

32.1%

Others

7.4%

Others

3.7%

Mar-16 Mar-17

10

Cash generation and debt posi tion (R$)as of March 31, 2017

Debt indexeson March 31, 2017

Weighted average cost o f funding vs. Selic rate (% p.a.)

Debt indexes evolution

¹ EBITDA and Net Financial Expenses are the sum of the last 12 months.

Source: Multiplan and BCB (Banco Central do Brasil)

Debt and Cash

: -7 b.p.

Fi nanci al Posi ti on Analys is ¹ Mar. 31, 2017

Net Debt/EBITDA 2.39x

Gross Debt/EBITDA 3.78x

EBITDA/ Net Financial Expenses 3.62x

Net Debt/Fair Value 11.2%

Total Debt/Shareholders Equity 0.60x

Net Debt/Market Cap 14.5%Weighted Average Maturi ty (Months) 45

Multiplan cost of funding (gross debt) Selic rate

1,116.7 M

3,047.4 M

1,930.7 M

806.8 M

462.3 M

Cash Gross Debt Net Debt EBITDA(LTM)

FFO (LTM)


11/17

1Q17

11

Evolution of Net Debt/EBITDA

Debt amortization schedule (%)

¹EBITDA and Net Financial Expenses are the sum of the last 12 months.

Source: Multiplan

Financial Covenants

Debt amortization schedule (R$)

Debt Amortization Schedule and Covenants

2017

14.0%

2018

13.9%

2019

26.3%

2020

13.2%

2021

7.6%

> 2021

25.0%

Lowestcovenant(4.00x)

2.44x 2.33x2.43x 2.40x

3.04x

2.39x

1.00x

2.00x

3.00x

4.00x

Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

339 M

364 M

600 M

202 M

233 M

111 M

110 M

101 M

149 M

54 M

58 M

4 M

34 M

199 M

199 M

290 M

427 M

422 M

803 M

401 M

233 M

402 M

110 M

101 M

149 M

2017

2018

2019

2020

2021

2022

2023

2024

2025

Loans and financing (banks)

Property acquisition obligations

Debentures

Covenant ¹ Lim it Mar-17 Debt

Volume Status

Net Debt/EBITDA = 2.00x 3.62x 730.4 M Comply

Total Debt/Total Asset =20.0% 67.2% 69.3 M Comply

Total Debt/Shareholders Equity


12/17

1Q17

12

(1) Considering Multiplan´s interest in the CAPEX of 94.7%

(2) Considering Multiplan´s interest of 80.0%Source: Multiplan

Greenfield Under Construction

Multiplan’s Stake:80%Opening: Nov-17

Leased GLA: 80%

CAPEX(1): R$359.3 M

Key Money(1): R$26.5 M3rd year NOI(2): R$36.0 M

3rd year NOI yield(2): 10.8%

48,000sq.m. of GLA


13/17

1Q17

13

(1) Considering Multiplan´s interest in the CAPEX of 100.0%.(2) Considering Multiplan´s interest in the CAPEX of 96.5%.

Source: Multiplan

Pátio Savassi Expansion IIRibeirãoShopping Medical Center

Expansion

Expectedopening:

2Q17

Expectedopening:

4Q176,200sq.m. of GLA

2,300sq.m. of GLA

Multiplan’s stake: 96.5%

Leased GLA: 100.0%

CAPEX(2): R$34.9 M

Multiplan’s stake: 100.0%

Leased GLA: 72.1%

CAPEX(1): R$35.5 M


14/17

1Q17

LTM NOI(1) and stock price evolution since IPO

NOI and Stock Price Evolution

Source: Multiplan and Bloomberg as of March 31st, 2017.

Note: Multiplan’s IPO was on July 2007.(1) Considers the 90 days moving average of LTM NOI.(2) The October 17th, 2012 closing price was the highest until December 31th, 2016.(3) NOI from Oct/11 to Sep/12.

Jul-07 Apr-08 Jan-09 Oct-09 Jul-10 Apr-11 Jan-12 Sep-12 Jun-13 Mar-14 Dec-14 Sep-15 Jun-16 Mar-17

CAGR 2007/17:

17.0%(+381.8%)

NOI

CAGR 2007/17:10.2%

(+165.2%)

Share price

100

Mar 31st, 2017

LTM NOI(3) ofR$986 mn

R$66.30/share

Oct 17th, 2012(1)

LTM NOI(2) ofR$570 mn

R$63.18/share

13


15/17

1Q17

20.0 M

30.0 M

40.0 M

50.0 M

60.0 M

70.0 M

80.0 M

60

80

100

120

140

Apr-15 Dec-15 Aug-16 Mar-17

+25.1%

+13.5%

Traded Volume (15 day average)

Multiplan

IBrX50

20.0 M

30.0 M

40.0 M

50.0 M

60.0 M

70.0 M

80.0 M

70

85

100

115

130

145

Dec-14 Jul-15 Feb-16 Aug-16 Mar-17

Multiplan

IBOV

+39.8%

+29.9%

Traded Volume (15 day average)

15

Evolution of average daily traded volume

¹ Base Date: December 31, 20142 Base Date: April 30, 2015

Source: Bloomberg

Examples of Indexes that MULT3 integrates

MULT3 Performance

Evolution of MULT3 since inception in Bovespa Index1 Evolution of MULT3 since inception in IBrX 50 Index2

MULT3 / IBOV:+981 b.p.

MULT3 / IBrX50:

+1,155 b.p.R$ R$

26.5 M 31.7 M

38.6 M 39.5 M

52.4 M492,683

640,868

809,890 714,464 813,250

2013 2014 2015 2016 1Q17

Average daily traded volume (R$)

Average daily traded shares


16/17

1Q17

16

Evolution of Fair Value¹ (R$)

Growth of Fair Value1, NOI and ow ned GLA(Base 100: 2011)

Fair Value1 per share (R$)

1

Calculated according to CPC 28. Details are available in the March 31 2017 Financial Statements and 1Q17 Earnings Report.2 The sum of Market Cap and Net Debt.3 Based on stock price on March 31, 2017.Source: Multiplan

Market Cap3 vs. Enterprise Value2 (EV) vs.Fair Value1 - March 31, 2017

Fair Value Analysis

Fair Value 1 and Enterprise Value2 (R$)

0.0 B2.5 B

5.0 B

7.5 B

10.0 B

12.5 B

15.0 B

17.5 B

2011 2012 2013 2014 2015 2016 Mar-17

Future projects (not disclosed)Properties under development (disclosed)Properties in operation

Fair Value

17,2 B

13.0 B14.7 B 14.6 B

16.0 B 16.0 B 16.6 B 17.2 B

7.3 B

12.3 B 11.3 B 10.9 B

9.1 B

13.8 B 15.2 B

1.79x

1.20x 1.29x1.47x 1.75x

1.20x 1.13x

2011 2012 2013 2014 2015 2016 Mar-17 (LTM)

Fair Value Enterprise Value (EV) Fair Value / Enterprise Value (EV)

73.21

82.4578.06

84.99 85.3087.80 86.58

2011 2012 2013 2014 2015 2016 Mar-17

13.3 B15.2 B

17.2 B

Market Value EnterpriseValue (EV)

Fair Value

+13.3%

100

125131

146 144150 150

119

135

164

180186 186

127

144150 152 153 153

2011 2012 2013 2014 2015 2016 Mar-17(LTM)

Fair Value - properties in operation

NOI - properties in operation

Owned GLA - properties in operation


17/17

1Q17

Armando d’Almeida NetoCFO and IRO

Hans MelchersInvestor Relations and Planning Director

Franco CarrionInvestor Relations Manager

Leandro VigneroInvestor Relations Analyst

Daniela MostaertInvestor Relations Analyst

Tel.: +55 (21) 3031-5600Fax: +55 (21) 3031-5322E-mail: [email protected]

ir.multiplan.com.br

IR Contact

presentation 1q17

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