presentation 4q14
TRANSCRIPT
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4Q14 Conference Call
www.multiplan.com.br/[email protected]
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4Q14Managerial Report
Multiplan is presenting its quarterly and annual results in a managerial format to provide the reader with a more complete perspective
on operational data. Please refer to the company ´s financial statements on its website www.multiplan.com.br/ir to access the
Financial Statements in compliance with the Brazilian Accounting Standards Committee – CPC.
Please see on page 34 in this report the changes determined by Technical Pronouncements CPC18 (R2) and CPC19 (R2), and the
reconciliation of the accounting and managerial numbers.
The following pages present a brief description of the changes determined by Technical Pronouncement CPC19 (R2), and the
conciliation between the accounting and managerial numbers.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 1 st, 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 report
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 Manati
Empreendimentos e Participações S.A. and Parque Shopping Maceió S.A. For additional information, please refer to note 9.4 of the
Financial Statements dated December 31 , 2014.
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2.8 B 3.1 B 3.6 B4.2 B 5.1 B
6.1 B7.5 B 8.5 B
9.7 B11.4 B
12.8 B
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
+12.1%+2.1 x+4.6 x
Multiplan’s shopping centers total sales (R$)
0.9 B 1.0 B 1.2 B1.4 B 1.7 B
2.0 B2.4 B
2.8 B3.2 B
3.7 B4.1 B
4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14
+11.3%+2.0 x+4.4 x
Source: Multiplan
Shopping Centers Sales
Same Store and Same Area Sales growth (YoY)
7.0%
10.3%7.7%
10.0% 9.7% 9.5% 9.4%7.4%
8.8%
5.7%7.7% 8.0%
9.3%12.0%
6.7%8.8%
6.6%9.4% 7.5% 8.3% 8.2% 8.1% 8.5% 6.8% 8.1% 5.8%
8.4% 7.6% 8.3% 9.4% 6.1% 7.9%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
8.9% 8.9%7.5%
9.0%
7.6% 8.4% 7.4% 7.9%
2011 2012 2013 2014
Same Area Sales Same Store Sales
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98.5% 98.4%98.8% 99.0%
97.5%97.6%
98.1%
98.6%
97.2%
97.8%
98.5%
98.1%98.4% 98.1% 98.1%
98.0%
96.0%
97.0%
98.0%
99.0%
100.0%
1Q 2Q 3Q 4Q
2014
2013
2012
2011
2.1%
1.5%
1.9% 1.8% 1.7%1.6%
1.1%
0.3%
1.1%
0.6%
4Q10 4Q11 4Q12 4Q13 4Q14
Delinquency Rate Rent Loss
Selected Operational Data
Occupancy rate evolution
11.9% 12.4% 12.4% 11.7% 11.7%
0.7% 0.9% 1.4% 0.7% 0.5%
4Q10 4Q11 4Q12 4Q13 4Q14
Occupancy Cost Turnover
Historical turnover and
occupancy cost: 4Q10 – 4Q14
Historical delinquency rate
and rent loss: 4Q10 – 4Q14
Source: Multiplan 5
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1.3 M
5.6 M
10.1 M 11.1 M
13.4 M
4Q13 1Q14 2Q14 3Q14 4Q14
Parking12.7%
Services9.6%
Real estate forsale revenue
9.4%
Key money3.0%
Straight lineeffect0.7%
Others0.3%
Base rent88.7%
Overage3.9%
Merchandising7.4%
Rentalrevenue64.4%
Gross revenue (R$) growth (YoY)
Gross revenue breakdown: 2014
Gross Revenue Analysis
Source: Multiplan
Morumbi Corporate rental revenue evolution (R$)
1,074.6 M
1,245.0 M
122.3 M 4.0 M 13.9 M (16.0 M) 26.0 M 20.2 M0.0 M
Gross Revenue2013
Rental revenue Straight lineeffect
Services Key money Parking Real estate for sale revenue
Others Gross Revenue2014
15.9%
+18.0% +78.2% +13.2% -30.3% +19.7% +20.8% +0.6%
21.2%
2014: 40.3 M
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8.8% 6.4% 6.9% 5.8%
4.9%3.7% 2.5% 2.8%
14.1%
10.4% 9.6% 8.8%
2011 2012 2013 2014
7.3% 8.8% 9.6% 9.3% 7.7% 6.3% 5.7% 5.9% 6.8% 7.4% 7.6% 6.7% 5.9% 5.8% 5.9% 5.6%
2.8%
4.9% 5.8% 4.8%3.9%
3.9%1.8% 2.6%
4.3%0.6%
3.5%1.2% 0.9%
4.1% 2.7% 3.4%
10.3%
14.1%16.0%
14.5%11.9%
10.4%
7.7% 8.6%
11.4%
8.0%
11.4%
8.0%6.8%
10.1%8.8% 9.2%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Evolution of rental/m² per month ¹ (R$)
¹ Shopping centers in operation for 5 years or less.² Shopping centers in operation for over 5 years.Source: Multiplan
Rental Revenue Analysis
Evolution of Same Store Rent
Rental revenue (R$)
IGP-DI Adjustment Effect Real SSR
113/m²
76/m²
127/m²
Portfolio New ShoppingCenters¹
ConsolidatedShoppingCenters²
∆ 68.5%
7
216.7 M262.7 M
4Q13 4Q14
+21.2%
679.0 M801.3 M
2013 2014
+18.0%
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65.9 M58.3 M
75.1 M
124.6 M
106.6 M
12.1% 9.2% 10.2% 14.1% 10.9%
2010 2011 2012 2013 2014
-14.5%
93.1 M 88.4 M 99.9 M 108.0 M
117.0 M
15.4%13.1%
10.4% 11.0% 10.3%
.
.
1 .
1 .
2 .
2 .
.
.
.
2010 2011 2012 2013 2014
+8.3%
28.2 M24.5 M
31.6 M 29.5 M 31.3 M
10.5% 9.5%11.6% 10.6% 9.7%
4Q13 1Q14 2Q14 3Q14 4Q14
+11.1%
G&A and Shopping Centers Expenses
8
Evolution of G&A expenses (R$) and as a % of net revenues
Evolution of shopping center expenses (R$) and as a % of shopping center net revenues ¹
38.4 M
25.5 M 24.8 M 26.9 M 29.3 M
14.2% 11.5% 10.4% 11.4% 9.7%
4Q13 1Q14 2Q14 3Q14 4Q14
-23.9%
¹ Shopping center net revenues exclude real estate for sale revenue and taxes, and straight-line effectSource: Multiplan
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0.73 0.941.14 1.09 1.38
2.583.09
3.623.97
4.72
4Q10 4Q11 4Q12 4Q13 4Q14
NOI + Key Money per share (quarter)NOI + Key Money per share (LTM)
CAGR:12.9%
CAGR:16.7%
203.7 M
258.2 M
84.1% 88.1%
4Q13 4Q14
+26.7%
744.1 M883.0 M
85.7% 87.9%
2013 2014
+18.7%
137.6 M
213.6 M
56.4%76.1%
4Q13 4Q14
+55.2%
609.8 M
752.4 M
68.6% 76.2%
2013 2014
+23.4%
138.8 M
223.8 M
51.7%69.4%
4Q13 4Q14
+61.2%
610.7 M
793.7 M
62.4% 70.2%
2013 2014
+30.0%
Evolution of NOI + Key Money per share¹ (R$)
Net Operating Income (NOI) and EBITDA
9
Net Operating Income (NOI) + Key Money (R$)
Shopping Center EBITDA (R$) Consolidated EBITDA (R$)
¹Shares outstanding adjusted for shares held in treasurySource: Multiplan
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76.3% 78.0%85.3% 86.6% 89.8% 89.0% 84.7% 87.4%
52.1%
60.1%63.0%
57.9%
67.3% 64.0%62.4%
70.2%66.7%
59.3%
68.8%62.6%
75.3% 74.1%
68.6%
76.2%
51.8% 57.7%56.5%
60.9% 61.4% 53.6%
43.6%48.9%
2007 2008 2009 2010 2011 2012 2013 2014
NOI Margin EBITDA Margin Shopping Center EBITDA Margin FFO Margin
Margins evolution
10Source: Multiplan
Gross Revenue
Net Operating Income
EBITDA
FFO
Net Income
Historical performance (R$ Million)
368.8
212.1
212.2
200.2
21.2
2007 (IPO)
1,245.0
846.1
793.7
552.9
368.1
2014
3.4x
4.0x
3.7x
2.8x
17.4x
Results and Margins Evolution
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338.3M
2,214.5M
1,876.2M
793.7M
552.9M
Cash Gross Debt Net Debt EBITDA(LTM)
FFO (LTM)
Debt and CashCash generation and debt position (R$)
as of December 31, 2014
Net DebtEBITDA (LTM)
= 2.36x
Multiplan debt indices onDecember 31, 2014
11
Weighted average cost of funding (% p.a.) vs. Selic rate
Weighted average maturity(months)
11.08%10.52%
9.98%9.48% 9.08% 8.95% 9.20% 9.34%
9.87%10.41% 10.50% 10.54%
10.96%11.00%9.75%
8.50%7.50% 7.25% 7.25%
8.00%9.00%
10.00%10.75% 11.00% 11.00%
11.75%
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14
Multiplan Cost of Funding (gross debt) Selic Rate
TR42.7%
CDI45.4%
TJLP6.7%
IGP-M2.3%
Other 2.9%
5350
4846
54
4Q13 1Q14 2Q14 3Q14 4Q14
Source: Multiplan
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Dividend distribution - including interest on Shareholders' Equity (R$)Total payout as a % of net income after legal reserve
442 M
689 M
1,344 M
775 M
302 M
2010 2011 2012 2013 2014
-0.70 x
0.95 x
2.44 x3.03 x
2.36 x
2010 2011 2012 2013 2014
Net debt / EBITDA
102.9 M149.0 M
183.7 M135.0 M
174.9 M
50% 53% 50% 50% 50%
2010 2011 2012 2013 2014
372411
521
628 638
2010 2011 2012 2013 2014
+71.5%
Invested CAPEX (R$)
Investment, Growth and Dividend Payout
12
Dividend distribution
Owned GLA (‘000 m²)
Financial leverage
Source: Multiplan
Total: R$3,552M
Total: R$745.6M
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68.8773.21
82.45 78.06
84.99
100
111 138
145
162
120
143
163
197
111
140
160
166
2010 2011 2012 2013 2014
Fair Value - properties in operationNOI - properties in operationOwned GLA - properties in operation
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2.5 B
5.0 B
7.5 B
10.0 B
12.5 B
15.0 B
17.5 B
2010 2011 2012 2013 2014
Future projects (not disclosed)Properties under development (disclosed)Properties in operation
Fair Value
16.0 B
2010 2011 2012 2013 2014
13
Fair Value AnalysisEvolution of Fair Value¹ (R$) Growth of Fair Value¹, NOI and owned GLA
(Base 100: 2010)
Fair Value¹ per share (R$)
¹ Calculated according to CPC 28. Details are available in the December 31, 2014 Financial Statements and 4Q14 Earnings Report.² Based on stock price in December 31, 2014.³ The sum of Market Cap and Net Debt.Source: Multiplan
Market Cap vs. Enterprise Value (EV) vs. Fair Value¹On December 31, 2014
9.0 B10.9 B
16.0 B
Market Cap ² EnterpriseValue (EV) ³
Fair Value ¹
∆ 47%
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Multiplańs nineteenth shopping center;
48,000 m² of Gross Leasable Area (GLA);
Multiplan will hold an80% interest in the shoppingcenter;
258 stores ;
2,500 parking spots ;
Modernmix that reflects the current needs.
Source: Multiplan
ParkShoppingCanoas
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IR Contact
Armando d’Almeida Neto CFO and IRO
Hans MelchersInvestor Relations and Planning Director
Franco CarrionInvestor Relations Manager
Carolina WeilInvestor Relations Analyst
Ricardo GasparPlanning Manager
Tel.: +55 (21) 3031-5224Fax: +55 (21) 3031-5322
E-mail: [email protected]
http://www.multiplan.com.br/ri