Multiplan Empen Unsp/Adr

Good morning, ladies and gentlemen. Welcome to the first quarter 2023 conference call for Multipline. We have here today Mr. Eduardo Camnitz-Perez, Mr. Armando Da Almeida Neto, Mr. Marcelo Barnes, Mr. Wander Giordano, Mr. Hans Melker, and Mr. Richard Smartman. Today's live webcast and presentation may be accessed through the Multiplan website at irmultiplan.com.br. Should any participant need assistance during this call, please press asterisk zero to reach the operator. Before proceeding, let us mention that forward-looking statements that are based on the beliefs and assumptions of Multiplanes Management and on information currently available to the company. They involve risks and information that is currently available to the company. These are not guarantees of performance. They involve risks, uncertainties, and premises. These are related to the four locating statements and depend on circumstances that may or may not occur. Professors should understand that General Economic Conditions, Microeconomic Scenarios, Industry, and other factors may affect the results of the company, and such results may differ materially from those expressed in such forward-looking statements. Now, I'll give the floor to Mr. Eduardo Padisky. We'll start the presentation. Please, the floor is yours. Hello, everyone. I would like to thank you for your presence, all the investors here, and I would like to go over a few issues, a few details of this first quarter. So, once again, I'm going to comment the excellent results of Multiplan in this year. We have the trend of strong growth regardless of the external challenges. The company has presented two-digit growth in sales, reaching 4.6 billion reais, increasing 16% in regards to the same period of 2022. Our gross revenue has grown 9.9%, totaling 498,600,000. And the revenue has has come to the total of 384 million, so 8.8% growth. And we generated an EBITDA of 357 million, 21% higher than the first quarter of last year. FFO, 261 million, 23, almost 24% higher. Our net income has reached the standard of 207 million with a growth of 20.8%. And I would like to highlight, if you compare the beginning when we were listed, since we were listed 16 years, the net income has increased 20 times from 10.2 million Rez in the first quarter of 2007 to 207 million, which is what we see in this quarter growth. These results have allowed us to invest ever more in our strategy, which was always to invest in our own assets and improve them. If you're just taking into consideration this first quarter, we've invested 215 million Reais in Capex. And we have two expansions ongoing, about 18,000 square meters of the total area, and Foreign Study 2 totaling 52,000 square meters of expansion, of a total of 200,000 square meters that we still have the capacity to grow. Also, we continue to invest in improvements, adapting to the new trends. And at the same time, we diversify our mix of tenants of stores proactively. Now we've registered in this period 115 stores subletted just in the first quarter. And if we just take into consideration the first part of the first quarter, we got to 170 contracts signed besides the investments. We've returned 75 million in interest rates over our own capital, and we kept the low leverage. which helps us to seize the opportunities that make sense for us. Digital innovation. Now, in that context of digital innovation, The super app Multi is growing and it's well, it's at the four million downloads registered thus far. Another news, the parking is done now through the reading of the license plate. Now the registration is done through Multi. And so the app is another tool that will facilitate the lives of the consumers or clients so we can communicate better with them and we can get, you know, their habits So we can improve the operation due to everything that we were just mentioning. We are interconnecting the digital and physical worlds to facilitate life and positively transform the experiences of our users, of our clients. Well, also generating value for our tenants. Corporate governance. Well, finally, for the first quarter in this year, we've increased our corporate governance area with the creation of an internal audit. And we are perfecting our whistleblower channel and we're increasing the transparency and the controls. We're always promoting the best practices. Well, last but not least, I would like to thank all of our employees, our tenants, for the excellent work that was done this quarter. The shareholders, investors, analysts, the journalists, thank you for your trust deposited on Multiplan. Now let's go for the Q&A.

Thank you.

We will start the Q&A session now for investors and analysts. Should you have any question, please type asterisk one, star one. If your question has been answered, you can type star two. The questions will be answered as they are received. First question, Illinical Data, Bank of America. Good morning. Thank you for accepting my question. I want to talk about the occupancy cost. Well, it's consistently higher than what it did in the past. I have two questions actually. Could you discuss how much of that increase is due to the stores that are more open in the portfolio and how much is the space becoming more expensive in regards to what it was? Second question, the occupancy trajectory, how do you expect it given that there is a normalization of the number of the level of growth that we've seen already in April. Thank you. Thank you. Thank you for the questions.