Multiplan Empen Unsp/Adr

Good morning, welcome everyone to the third quarter 2021 earnings conference call. Today we have José Isaac Pérez, CEO, Mr. Armando de Almeida Neto, CFO and IRO, Mr. Marcelo Barnes, CIO, and Mr. Hans Melkers, Planning and Investor Relations Director. We inform that the presentation of the results will be available for download at the website. And now, today's webcast will be present and may be accessed through Multiplan's website at jrmultiplan.com.br. We would like to inform you that you We would like to inform you that this event is recorded and that all participants will be in a listen-only mode during the company's presentation. After Multiplan's remarks, there will be a Q&A session. At that time, further instruction will be given. Should any participant need assistance during this call, please press Start 0 to reach the operator. Before proceeding, let us mention that forward-looking statements are based on briefs and assumptions of Multiplan management and on information currently available to the company. They involve risk and uncertainties because they relate to future events that are therefore dependent on circumstances that may or may not occur. Investors should understand that conditions related to microeconomic scenarios, industries and other factors could also cause to result to differ materially from those expressed in such forward-looking statements. This teleconference will last for 60 to 70 minutes. After this period, the investor relations team will be available if any questions have not been answered. Now I would like to give the floor to Mr. Jose Izaqui Perez.

CEO and he will begin the presentation please the floor is yours hello everyone ladies and gentlemen and everybody who is listening to us I will start so once again it is a great pleasure to be with you and now

This is a very special moment for Multiplan. Well, we've spent two years in crisis when most of the shopping malls were closed for over six months and they were reopened with restrictions. Nonetheless, Multiplan would like to celebrate with you some of the Landmarks that show the strength of our company through our trajectory. Well, let's celebrate first. Barra Shopping is 40 years old. It shows strength and capacity to renovate our enterprises. And in the third quarter, this shopping mall registered $583 million in sales. 3.3% above the same period in 2019, actually, and 28.9% compared to the same period in 2020. But we have very expressive numbers here that you can take into consideration. Well, that for the period 3.3 for the period of 19, of course. I mean, it could have been 28.9 in the same period as 2020, as I already stated. Now, Madras Shopping also has a great turnover and new stores and new operations. Now, November 18th, we are going to talk about Parque Jacarepaguá. which is our newest enterprise. And we are certain that on the 18th of November, we will finish Parc Jacarepagua. We have it with 95% of ABL, 95% of the leaseable area. Our results can be compared to those of 2019. 2020 was a challenge, but let's talk about a good year of growth, which was 19 before the pandemic. Now the revenue for rent has grown 19.7% in comparison to the same period of 2019. This is the biggest volume that we already reached in the third quarter, getting to a record of 290 million reais, 290.7 actually. If we compare apples and apples, oranges and oranges, then the growth at the stores on the same basis, if we compare it to 2019, It would be even larger. The previous growth was 28.4%. Now, if we exclude, here is another important exercise. The real estate activity, which is at the core of this company, was always the core of this company. If we exclude that, the revenue would grow 103.1% in comparison to the third quarter of 2020. The EBITDA, we finally get a growth of 37.9%. And the FFO already surpasses the third quarter of 2019 and it advances a whopping 162.8%. Eight shopping malls of the company had operational growth above the sales of 2019. Let's take, for example, Village Mall, which grew 17.1% in comparison to 2020 and 26.3% in regards to 2019. Now our total sales have grown. And we got to 3.7 billion Reais, 168.3% if we compared to 2020. And if we have a normal year, 19, it would have been 98.3%. This is what you're hearing. The sales are strong and they're servicing a demand that is actually a repressed demand for over 24 months. People are now finally leaving their homes. And we can see that that demand is being serviced by the shopping malls. Today, the malls have a harmonious area for social interaction, and they're located in the main centers, the main cities of the country. And this makes the company to be able to continue to grow in a very sustainable way, in my opinion. Now, in 25 days since we started the month of October we already surpassed 10% the sales in the same period of 2019 actually 9.7% to be exact now the interest in the tenants they are talking to us obviously and the interest has surpassed our expectations with the allocation of 132 The growth in that occupancy rate was higher than the previous quarter, and it was the highest since 2012. Our occupancy rate has grown to 95.2%, and we believe that in the next quarter it will be ever larger. I believe that we're going to get to that frontier of the almost 100% that we already had in the past. The occupancy rate, I already talked about the 95.2%, but it is very important to notice that many of these stores are migrating also and are moving to the shopping mall from the digital world. And this shows the importance of the shopping malls, shopping centers, which are located in strategic areas. close to the distribution centers. If you just take Barra Shopping, we receive 2.5 million people per month. Per year is 30 million people in a single shopping center. Now with Jacarepaguá, we're going to grow and we are going to get close to servicing even the total Population in all of our months, the total population of Brazil, which is close to 200 million people. Now, our flow of people here is the same as 2019, even though it's not a permanent one. Now, I would like to highlight a few things that we are very proud our innovations. We are always adapting to the needs, the current needs of our clients and our customers. Now, Parque Xacarepagua already shows an evolution in the concept of a shopping mall, more adapted to the current conditions and the longings of our customers. And it is integrated with nature. That greenery already occupies 36,000 square meters of the real estate. We are going to have areas for relaxing, for children to play. And now we are repeating what we did already with Cárnovas. Now in a way that we are More integrated because the park is inside of the shopping mall. The area built of the shopping mall is 100,000 square meters. And I believe that Parque Jacarepagua will be one of the most impactful shopping malls that was ever built in our country. And it will be a new threshold in the market. On the other hand, we have to also take into consideration that our actions have a very strong social, they strike a social nerve We invested 50 million in public works to make the shopping mall more viable and to provide a better environment for the population. We actually invested. We built a bridge. We doubled avenues. We installed modern lighting, public lighting. We built a great landscaping along many public highways, public ways. It is important to mention that this mall will generate 4,000 direct jobs and 4,000 indirect jobs. So, this is a lever for development for the region, and we are regenerating an area where 800,000 people live, and this is one of the oldest neighborhoods in Rio de Janeiro. I would say that it's one of the most, Empen Unsp If you think about the times of the Empire, this is a very old region and it was forgotten. And now with this new model, with this shopping mall, we are regenerating, revitalizing the region. Now we're going to have the valuation, obviously, an increase in the value of the surrounding real estate. That's what is expected. Well, That was a strategy from the company to consolidate our leadership and our presence in the western zone of Rio de Janeiro. But in this region, we have several shopping malls that basically service over 20,000 people in jobs. Now, let's go back to our origins, our roots. We are doing a great real estate enterprise, the Golden Lake. It is a unique project in the country and in a way it surpasses all of our expectations. Even, you know, the ones that we started establishing 30 years ago in Rio de Janeiro. Golden Lake is a unique project. It will be the first closed neighborhood, a private neighborhood in Porto Alegre with 18 towers. Residencial Towers. It will be integrated with Chabarra Shopping Soul and it is all around the rescue. We are providing a great valuation for the area of the Guayiba Bay. This is a project that was developed for many years and it has a revenue predicted for 4 billion Reais. The first stage, if I am not wrong, we did the official launching We have 30% of the sales already done. And this is a stage of the project, which is 524 million and sales are corresponding to 162 million reais. We are always adapting to the new demands of our clients. And this is a continuous process, a permanent process in all of our enterprises, residential and commercial. This process involves digital innovation and also you have to take into consideration our great app Multi and constant innovations in the mix architecture and the concept of our malls. We are always adapting to the new times. In that sense, I would like to highlight actually the innovation at the global level introduced by Multiplan 27 years ago at Barra Shopping where no shopping mall had a medical center. But we built a medical center 27 years ago and now we have 42 integrated clinics that service 300,000 people per month with exams and appointments. This is a great relevant service for the population and for everybody that goes in this mall. Now, many times we know of the suffering in the post-pandemic world with a population that needs psychological support. And we are implementing a new concept, a pioneering concept, even at the international level. We will launch in November in Ribeirão Shopping, the first management center for emotions in a shopping mall. The shopping mall is Multiserre and actually the center is called Multiserre, I apologize, and it was developed in a partnership with the psychiatrist Augusto Curi and it will make our region, it will benefit the region of Ribeirão Preto. It will address that issue of that unmet need of the psychological support for the population. For many years, we have paid attention to the environment and we have worked with product services and leisure in that sense. We worked on pleasure, on the assets and fun, but now we believe that we can also take care of something that is so subjective, but ever so fundamental and essential, which is the soul of human beings. This is obviously a pilot. project, and we hope to be able to extend this to all the shopping malls of the company, reinforcing Multiplan's commitment with the social well-being of the population. You're all invited in November to get to know this unique experiment in the world. which is to bring psychotherapy at an accessible level, at a social level. Now, our shopping malls are here to stay. They substitute the old boulevards and they became the great point for meeting up for the Brazilian society. I would say the main one. Over the last few months, regardless of the difficulties, we were always pleased with a strong recovery and payment in interest rates of 270 million over our own capital. And we distribute this to our shareholders in October. We continue to trust in our growth based on quality innovation and to be in the forefront of our projects. And we expect a Christmas that will be exceptional with results that are better than we had before. Thank you very much for the opportunity to address all of you. Once again, thank you for your support of all of our team, all of our tenants, all of our investors and the municipal authorities, which also support us. And well, dear friends, we are very pleased to be able to create another innovation that if it works correctly, it will be a historical landmark.