Multiplan Empen Unsp/Adr

Welcome to the earnings call of the third quarter of 2022 of Multiplan. We have here Mr. Jose Zacferes, CEO, Mr. Armando Daumida Neto, CFO and IRO, Mr. Marcelo Barnes, the CIO, Mr. Wander Jordan, CCO, Mr. Hans Melker, Planning and Investor Relations Director, and Mr. Richard Swartman, Digital Strategy Director. We would like to inform you that this event is being recorded and you can download it at the irmultiplan.com.br website. Also, you will only hear the earnings call during the presentation. Thereafter, they will start with the Q&A. They will receive further instructions. If you just need any assistance, please press asterisk zero to reach the operator. Before proceeding, let us mention that forward-looking statements are based on the beliefs and assumptions of multi-plan management and non-information currently available to the company. They also involve risks and uncertainties because they are related to future events and therefore depend on circumstances that may or may not occur. Investors should understand that conditions related to the microeconomic scenario, industry, and other factors could also cause results to differ materially from those expressed in such forward-looking statements. This teleconference will last approximately 60 minutes. After this period, the investor relations team will be available should you have any further questions. Now, I would like to give the floor to Mr. José Zac Pérez, President. He will start the presentation. Please, Mr. Pérez, the floor is yours. Good morning to everyone that is hearing, shareholders, journalists, people that are interested. I would like to say that it is with great satisfaction that we will present the results. Even though it's not my objective yet, my objective is larger. But now, I would like to say that this was the best quarter in the company's history when the sales got to 4.8 billion. This result, 28.3% over the same period of last year. As a consequence, we've had a revenue of 400, well, And there was a revenue of 186 million Reais. I would like to highlight that this revenue was the best results that we've had in this quarter. We had a revenue of 1.6 billion. All of our shopping malls, they've had a growth that was very expressive. And I'd like to highlight that, well, We are also evaluated by the square footage sales. And here we have the village mall, which is the youngest that is directed towards the upper middle class. This is the third in sales per square footage. in sales, and he is only losing to Morumbi and Baja Shopping, which are the shopping malls that are the ones that annually are chosen as the preferred ones by the population. This year, once again, we've had a great recognition from society that pointed to Morumbi and Baja Shopping, which are the best shopping malls in their respective cities. We've also had an Aliafrenko in third place. So we had two champions. Hopefully we're going to have more. I would like to say also that Vilolimpia that suffered a lot with the pandemic because this is an area that is very much occupied by the office buildings. During the pandemic, a lot of people were working remotely. I personally was not, but a lot of people was working remotely, and that affected the malls. And now with the return to the office life, almost 100%, Filolipi already recovered and grew. in regards to the previous quarter, 51%, which is very good. And it will reach its occupancy in a short while. There is a very important detail, and it's important to mention, technology. We used to talk about that technology was disruptive, that commerce was going to be over. And then we realize that the shopping malls are the providers of big tenants that use a lot of technology. And we have the demonstration that today with our multi-app that got it started a short while ago, we have 3 million downloads. And then we need to understand that the technology is a reinforcement for the tenant. It is as if they're opening an extra store. They're not forgoing the onsite. Without the onsite, we wouldn't have the conditions to continue, of course. And having the onsite, the sales of onsite is much larger than digital sales, than remote sales. But now you have two stores, an onsite and a remote one. But there is that thing of selling, of purchasing. that people don't like buying everything over the internet. Well, if you want to solve a problem, you cannot go to the shopping mall. But the business depends on time and money. So if the people don't have money at the shopping malls, they don't purchase. And the people that have the most money are the ones that buy the less because they don't have time. I'm not a good example because I purchase a lot. But on the other hand, with that issue of technology, we're advancing, we're advancing well. And I think that since we have the shopping malls that receive 200 million, just so you realize, in 2019, we received 47 million cars that got into our malls. We came back with full strength of cars and now we have 45 million and this is our projection for this year. So as you can see, when we talk about 200 million people that visit our malls yearly, you have a relationship that is very Honest with the number of vehicles. For each car, there is four visits. In a car, there is usually more than one or two people. Sometimes you'll get the whole family. But Uber today is great. It's a great, they go to our malls and we have the space to service the Ubers and we know that they're very important. So, once again, we really reinforce this, that there is a characteristic of human beings that does not allow people to Be isolated. Isolation is the worst thing that it happens. Well, being in prison is horrible. Not having your freedom is horrible. And then you are in conflict. You, oh, should I leave home? Should I not leave home? So fortunately we've gone over this and I can tell you that our malls are extremely proactive during the pandemic. And today, we are very sustainable. I'm going to give you the recent mall that we just built, Jacare Pagua. This is a mall that is that is very modern. And in reality, it has the treatment of waste waters, the use of waters, and all of our shopping malls, they have stations so you can charge your electric cars. But we're always trying to be at the forefront of technology. And that's why we're creating Most of you do not know this, but what we did as a pioneer in barra shopping 30 years ago, and people said, oh, well, the physicians, they said, why do you want to get a medical center on top of a supermarket? And I told, listen, doctor, this isn't a medical center. and on top of a supermarket, this is more. And now Barra Shopping, 30 years later, we have appointments and exams per month. We have over 300,000. We have 300 physicians working there. We increased the size of the medical center. Now we have it in Ribeirão Preto. We have it in Curitiba. And now we launched something completely new. The Center for Emotion Management. This is a new innovation. The medical center is an innovation of multi-plan in the world. We were the pioneers in getting a medical center inside of a shopping mall. And now in Riberon Preto, and we hope that it works, we are creating a center for the management of emotions. So we can capture the anguish, the difficult times that many times People are passengers in the shopping mall. But I always realized that every person that wants to, that seeks some pleasure is carrying some suffering as well, emotional suffering. All of us have a bit of an anguish, emotional anguish. And sometimes that problem is not going to be solved by purchasing a new shirt. So with a partnership with Augusto Curie, a great psychiatrist, one of the great psychiatrists of the world, we built in Ribeirão Preto a center that services several people, several. We have classes and it meets the requirements of that problem that all of us humans have. Our anguish, our depression, And I thought about this. Well, you might be having problems with your partner, but you can go to this place and try to sort this out. Maybe we can even reconcile some of these marriages.

Who knows? So this year,

After two years waiting, I think that Marcelo can confirm that we're going to launch the biggest, most attractive park external. The park at Jaca de Pagua, which is our most modern shopping mall. And this is a park with several Attractions that were imported even from Europe. It took two years to build it and it was supposed to be ready before, but the pandemic didn't allow us. We are delivering it a bit late. Nonetheless, when we build a shopping mall, we always invest in social. So we work with schools, we work with the ways, the The roadways and we become. It is a moment of trying to be a public service provider. That's what the shopping mall should be. And now we have over a hundred thousand people working in our malls. And I'm not even mentioning those that are indirectly working towards us. because when there is one person directly working, there's usually 14 people working at the production line. So we can get the product until the distribution channel. So our company is a great company of generating these jobs. And of course the costs are increasing. Of course, one day we're gonna get robots selling articles of clothing, but still not the time. And when we get there, we're going to get robots, of course. But now let's return to another point. Our DNA is real estate. Multiplano was born as a real estate company. And now throughout my life, 60 years, 60 years as an entrepreneur, my first entrepreneurs were always real estate. We were always Big innovators in this area. This year, we have Golden Green, which is a condominium of 14 buildings, the golf field. We also do it in Porto Alegre, Golden Lake. Golden Lake is a more advanced project because many times we have to compete with ourselves. When the competition doesn't do what you do, you have to overcome. And here I tell my companions of work that the objective is to make reality better than pleasure. To make the reality larger than the dream. And we're delivering more than people expect. And Multiplan is doing at the Golden Lake. It's a condominium in Porto Alegre. This condominium was born from the intervention that we had at the urban setting when we built Barra Shopping Zoo. At that time, that was an area that was occupied by 900 Small huts and houses. It was a bit of a shantytown. So we did something with the municipality that we transferred these people to apartments of two bedroom apartments that were better than the public housing. We transferred all these people. So really, we had the recognition of the municipality, which allowed us to do this project and this project Golden Lake. It took 10 years to be approved. And you need a lot of drive to do a project. The Golden Lake also took six years. Me in Florida as well, I was recognized as the Entrepreneur of the Year at the Brazil Florida Chamber by the project that we delivered recently. But here we approved One of the things that is important that curtails the development of the country is bureaucracy. There are several problems, but bureaucracy is fatal. People give up along the way because they cannot approve a project or because it just takes too long. And we are driven nonetheless And now I'm going to Porto Alegre and tomorrow we're going to launch Golden Lake, which is the largest private lake in the country. It's a lake that is a beach. You can swim in those waters. You can fish. You can go with your boat. It's a fantasy land. And it's actually the dream there. While we dream, we live. The day that we stop dreaming, then we die. So I let you all dreaming. My dream is always to try and deliver more than what people expect. Our company has this DNA. So this project, to summarize, is a project that is evaluated in 4.5 billion Res and we should get the results of up to 30%. So I'm not getting the numbers to impress her, but it will be done for eight years. So we're now building the first sub condominium. We have six sub condominiums and we are delivering the area completely urbanized. The mayor will be there as well. is the biggest real estate enterprise of the gender of the type in the southern region of the country. And we sold 55 of the private with a revenue of 550 million in sales. So we reached 55% of that number. And now with a delivery, we're going to get a new attractiveness. Regardless of all the difficulties in this country, we continue to believe in Brazil. We believe in the potential of this country, which is not a small country. Brazil is a continent. A Portuguese continent. And all my family is of Portuguese descent. We're all a mix of people. And I look at people and I ask them, where do you come from? And here, that's the beauty of Brazil. We're all mixed. The Christmas tree of Barra Shopping should be the largest one in Brazil. About 70 meters in height this year. Maybe we're going to do 73. I love Sao Paulo. Our biggest investment is Sao Paulo. I go to Sao Paulo for 50 years. The important thing is what we do and what we preach. A data that I think that you have to think. In 2020, our company got to have its share evaluated in 36.1. I think it was July, February. And I think that the company in June was valued something around 20-some billion. And now we have the lower price, but I understand that the interest rate has gone up. So certainly at that time, the interest rate was smaller. But the reality is we delivered in these, all of these years of activities, post IPO, what have we done? We delivered a company.