Multiplan Empen Unsp/Adr

Good morning, ladies and gentlemen, and welcome to the earnings call of the results regarding the fourth quarter of 2025 of Multiplan.

We have here with us the directors of the company.

We would like to let everyone know that the presentation of the results is available for download at the IR website of Multiplan, ri at multiplan.com.er. Before proceeding, I'd like to state that any statements that might be done during the earnings call regarding the business perspectives of the company, projections, and operational goals and financial goals are based on beliefs and premises of Multiplan's board of directors. Based on information currently available to the company, forward-looking statements are not a guarantee of performance. They involve risks. And these are stated for the forward-looking statements. So they depend on circumstances that may occur or not. Investors should know that general economic conditions, industry conditions, and other operational factors might affect the future results of the company. It might lead to results that are materially different from those stated in the forward-looking statements.

Now I'd like to give the floor to Eduardo Perez.

The floor is yours. Good morning. It's a pleasure to be with you to talk about Multiplans, fourth quarter 2025, earnings conference call. So, before we talk about the quarter itself, I'd like to highlight something important. The results that we see today are stemming from a transformational cycle that was built throughout the last years. It was a period of investments and discipline execution, deposition, multiplying, and a new threshold of efficiency, deliverables, and operational capacity. We allocated over $6 billion in expansion, digital innovation, and capital return to the shareholders. Of this, I'd like to talk about the reshare and strategic requiring of shares with para-shopping, for example, one of the most dominant assets of the country. At the same time, we kept discipline in management, reducing the expenses. In 2025, We've reached the last level of expenses with a drop in over 32%. Beneficiency is translated directly into the operational results. We got to the highest annual NOI margin and our average occupancy rate is of 96.3%. More than 50,000 Square meters of new jelly were delivered over the last three years, including the expansions of Barigui, Lemon Mall, and Parque Maceio. That was launched in November. In March, we're going to get to the fourth deliverable with the expansion of Modern Beach Shopping. For 2026, we still have the expansions of Barra Shopping, Belo Horizonte, and Parque Shopping in Brasilia. This cycle is also strengthened by the quality of our assets. In 2025, the tenant sales grew by 8%, getting close to 26 billion with 11 malls, surpassing 1 billion in sales. During Christmas, while the sector grew 0.3%, our malls grew over 7%. This is a clear indicator of the attractiveness and relevance of our portfolio. Now we close the year with a record EBITDA of $2 billion and a net income exceeding $1 billion for the third consecutive year, even after relevant higher financial expenses. This talks about the resilience of our business model and cash generation. Multi, the app, still continues to gain scale and importance. 2035, we recorded 62 million interactions. and we got to 5.6 million active users. 20% of the sales of them all were registered through the app. We also evolved in the use of artificial intelligence in our business applied to multi and the internal processes that used optimized time and reduced cost. These developments reinforce our digital strategy, connecting and generating value for clients and tenants. In the real estate sector, I'd like to highlight the launch in May of Lake Baikal, the third condominium of Golden Lake. That development is continuing the expansion of the primary area surrounding Barra Shopping in Seoul. Golden Lake will be the home of approximately 1,500 families, increasing the traffic to the mall and enhancing the importance of that area in Porto Alegre. We are also studying and we expect to launch and build three expansions in 2027. Jundiaí, San Caetano and Belo Horizonte. Belo Horizonte with 13,000 square meters, San Caetano with 9,000, Jundiaí with 8,000 total, 30,000 square meters of growth in 27. What has brought us here is our long-term conviction and the dedication of a highly qualified team, to whom I extend my sincere appreciation for their daily commitment. To you, investors and analysts, thank you for your trust in our company.

Now we will go to the Q&A session.

Thanks. Thank you. Let's start the Q&A session. For investors and analysts, Should you have any questions, please click on the button Q&A and write down your name. We're going to answer the questions in order. First one, Igor Altaro, XP. Igor, the floor is yours. Hi, everyone. Two points on my side. First, I wanted to understand how do you see the dynamic in the macro of higher interest rates? How is your mind and allocation the focus of the company and priorities when we think about M&A's expansion, even a potential greenfield? That's the first one. The other point is regarding CAPEX. I can see that the CAPEX of revamping is with a lower threshold. So what should we expect for this dynamic of CAPEX for 2026? Thanks.

Hi Igor, thank you for the question.

I don't think that this is a low capex. I think it's enough. It's enough so we can deliver what we agreed to this year. I think that a comparison with what we've been doing It's not every year that you're going to do a repurchase of shares of the size that we did, but we want to leave some space so we can work with opportunities that may appear, just like bottom shopping. To talk about M&As, just like you mentioned, we're always paying attention for the good opportunities that may appear. So we need to have space for that. Interest rates, it's very difficult to imagine. It seems like they're going to drop this year. With certainty, no one has any certainty. The certainty that we know that this is going to be a year of a lot of work, another year of engagement, and be committed to overcome the numbers that we've had for 25. So it's a lot of work. It's a lot of hard work. And looking ahead, as we've done the last three, we're going to do a strong work this year. Thank you. Next question. The floor is yours. Good morning. Thank you for the opportunity. Two questions on our side. First, at least on our side, the pipeline of Capex should be lower than 26. Given this context, I wanted to understand how the company evaluates the possibility of structural interest over capital and what is the payout that the board thinks that is more sustainable. And thinking about this, what is the level of leverage that you think that is ideal for this year? Hi, this is Armando. Thank you for your questions. Well, as Eduardo has answered in the previous question, the CAPEX tends to decrease. The CAPEX last year was higher because of the opportunity of M&A, and the answer is obviously It will depend on the opportunities. We have deliverables. We have four expansions where with the payback set we have to deliver with success all throughout the year. The ideal leverage is very theoretical because it depends on the interest rates and we are facing this interest rate so we don't have any control of what we're going to get. We're very comfortable with the level of interest rates and the level of leverage that we have. We are not resource managers, so either we have the opportunity of growth, or we return more money. Of course, with a capital infrastructure that is more ideal and the level of interest rates two times, it makes me very comfortable. We were comfortable with three times with a different interest rate. So we're going to be adapted as the scenario manifests itself. Thank you. Next question. Good morning to the team. Well, two questions on my side. First of all, cost and expenses in a quarter. We see the cost of property very low. We have So I want you to understand how do you expect these lines through 26. Do you think that this is a threshold that is easy to keep throughout 26 in every one of those lines? Or maybe do you expect that there's going to be a catch-up for the historical levels with more speed? And the second question is about the recycling of assets. The company sold three states, stakes all throughout the year. And I wanted to understand how do you see this dynamic up ahead, given that we can talk about the very strong market. And do you want to do any more of these movements? What is the objective? Thank you. Hi Elvis, this is Eduardo. Let me start by your second question. We, as we told you recently, is of the operation of the company buying and selling shares participation. So that happened many times throughout the history of the company. Maybe there's going to be a cycle where you are going to specifically Do the sale of a participation that is a minority on shopping X or Y, but always keeping control and always seeking positive results for the company, opening space for other investments. So I'd like to make it clear. This is a movement that is constant. It appears it happened many times. Last year we had barra shopping we didn't expect, but the price was so attractive, the business was so good, we said let's buy it. Levels of efficiency of the company. As you mentioned, if I think it's sustainable, I want you to believe that yes. We're always going to try and get the best efficiency possible. Last year we recovered a hundred million in credits and taxes and rubrics, different rubrics. We are very active, we're very aggressive in our legal onlook. Looking for new revenue streams and also what was left behind. I want to believe that we're going to deliver the same or better. Is it difficult? to be better yes but it's not impossible the team is integrated everybody is has a lot of that they want to work to repeat last year and improve it well and many times the analysts they look at the pinpoint recovery of expenses but if you look at at the margin of NOI. We have the recovery of expenses as Eduardo reported. This expense is on the DRE. It's recurrent. And we see this as recurrent. and the work of the company has to be more efficient and this is reflected on the record margins that we've presented not only in the NOI but also at BIDDA so it's important also to remember that in the not so distant past when we were not part of the billion club we grew and we didn't have efficiency we didn't deliver results now we grow We deliver results that are much higher. And we still return some capital to the shareholders. So we're living in a very good world. Could it be better? Yes. But this is a challenge for the company. And Eduardo, another point. So there is a lot of interesting things that we can consider. If you look at five years down behind, how much capital did we allocate? Over $7 billion allocated capital. When we look at the growth here, and I keep your investments and what we're doing now, we invested $3 billion, and we returned to the shareholders $4,800,000. And $2.5 billion We could return capital, we could grow the company, and we could generate a record efficiency this year. So we're going to continue 2026 with this same performance of improving the results. Thank you. Next question, from Bank of America. Thank you for the opportunity to ask a question. The first is about the tax reform. Is there any account of impact in any negotiation with the tenants? And a second question, so we can understand the one billion of retroactive interest of our capital. Well, how can we distribute this over the time? Can you reduce it all in one year? Is there a limit? Thanks. Well, the first question, I don't know, well, the tax reform, I cannot tell you all the impacts because there's a lot of new rules being applied. It's an enormous work to be developed with the new regulations. And we're going to analyze all throughout these impacts, as you commented. with the tenant, with the negotiations with the providers. All of them are relevant. But now, in general lines, we start to have a benefit. We don't want to lose the past credits. We want to appropriate ourselves of the credits. And a company such as ours that invests in new areas, everything that would be taken after all the accounting lifespan they're going to be used immediately so if you bought cement you're gonna take this credit immediately so this simplicity will help and all throughout time this with the implementation of the tax reform it will create companies that are more competitive simpler let's leave it with more details as this is implemented Regarding your second question, of the interest over capital. Well, you could state this amount at the same time. And now we're going to evaluate so as we have a vision of how much is going to be invested in growth and how much it will be for the return of capital for the investors. We can or not use this money. So, we need some more time this year, and then we can see how the economic environment will be, the interest rate, and then we can discuss this later. Thank you.

Thank you.

Next question is Gustavo Cambalba, BTG Pactual, The Flourish Earth. Good morning, everyone. I have a question more regarding how you're imagining The performance of the retail for 2026. Well, all the retailers are talking about the weaker economic downturn, but January has been better. But this is a year more complex of the World Cup, election. They don't tend to be so good for retail in general. So at the same time we see our portfolio is performing very well with a turnover very low. So the exchange has to be low with a vacancy with lower thresholds. So I want to understand how do you see more on the side of retail Until what point that deceleration of the fourth quarter do you see it as a concern? And even 2026, is there any point of attention? And until which level have you seen more interest on the tenants for your portfolio? Thank you. Well, thank you. A few points that we can consider. The election year is a year that everybody spends more. The government spends more, there is more money circulating. Since I've been here it's always a good year for retail. It's not a bad year. It's very productive. We feel very strongly the effect of the tourists in, for example, Rio de Janeiro. There has been a lot of participation here. You have that situation where the salaries until 5,000 reais are exempt, and you have more money in the market, and they will certainly push for the retail in a positive way. I'm always optimistic this year more. There is a World Cup. There is a lesser impact. So I don't expect that this is going to be a bad year for retail, as you asked. And this is a portfolio where people want to be. The quality of the portfolio wants to bring this. Where the shopping invests, where the shopping mall promotes, we're always at the forefront. And they can do this better always. They want to seek the best experience for the shopping mall. And this is the magic and the success of the company. We want to surprise our clients. We're always optimistic for the year. I don't see any difficulty up ahead. Well, complementing this point and explaining this optimism The cycle of investment and revamping this is generating results for the company in a way that is interesting of seeing this last. Well, yesterday we see the growth of market share in sales in the shopping mall sector. So it's been growing year on year. 2019 we had an eight and a half percent of these volume of sales in a shopping mall 2024 and this strategy for the initial comments this is going to generate results for the company generating growth of market share and as an anecdote and the there is also the carnival and you talked about the digital well how is the interest of the tenants you have expansions for the tenant and it is at the store that they sell the most and they pay for that for increasing their sales so our portfolio is that that interest is growing It's 100% allocated. We shouldn't be pessimistic. Next question is André Mazzini. Citibank. Please, the floor is yours. Well, good morning Eduardo Armando for the call. Two questions. The revenue of rent has dropped on a few shopping malls. Certainly this is a pinpoint. So how much it is year on year and how much it is of the portfolio and there is a drop that resetted the threshold of rent over the next quarter. So it's not an L shape, it's a V shape in Belo Horizonte. And the GP in two months is negative. And the understanding is that ignored when there is an adjustment of inflation and you consider zero. So most of the contracts, if you can confirm this understanding. Hi, Andre. we need to expand and expand in 14 15,000 square meters ABL but it was an agreement in 24 and it is an agreement there was a discussion of a difference in rent of 10 years and we create this distortion And well, I'm going to keep your V of Victory. We are going to be growing as you were. If you got Berga Shopping, it's the first shopping mall of the network. We have three shopping malls in Belo Horizonte, but everyone wants to be there. So we have an expansion there. Oh, I want the space. I want this and that. So there is an opportunity. There is still an opportunity to grow. We are not concerned. The revenue of rent will grow and what pushes that ahead is not IGP or it's the shopping mall performing better. This is happening year on year. you asked about the difference of positive to negative with the adjustment of GP let's remember that now we're talking about the correction of rent so correction cannot be downward so the reading is always that we need to protect Well, we have a contract of 30 years where the inflation was 40% a month. So that's our mindset. We are positive. So just taking a number, let's go back to 2024. Remember this agreement, the rent of shopping mall grew 30%. So I'm going to be very happy to do cash flow 12 months before to see that it didn't grow in 2025 because of a pinpoint issue. Well, the point is, when we talk about Beaga shopping, even I am surprised by the demand of the shopping mall. It is very big. There is a small expansion that we announced. There is a big demand. So there we have the potential for growth. And this is the way that we're going to do it in 2027. Okay. Thank you. Next question. Analyst of Goldman Sachs. Hi, good morning, everyone. I have two questions here. The first one, I wanted you to comment on the IGP and how can it impact the same-store rent. The impact of IGP was low. It was about 1%, but even so, you had a real growth of 4% same-store rent. 2025, the impact of the readjustment of IGP was higher. But the real growth of S&R was 2%. So my question is, how should we think about this dynamic from now on? We should see a real growth of S&R leasing spreads. And another question is about Multi. You discussed in the release that you had $5 billion in sales by Multi. But when I see your portfolio, the sales are $25 billion. So the clients of Multi have registered a big percentage of your sales so what I wanted to understand is how are you monetizing multi we see the impact of multi in the service line and how can that grow in the future thanks but I'm gonna answer this part which is digital so you are seeing it the monetization When you see 20% of sales going through the app, you are keeping these people and you created an object that people want that didn't exist before. So let's remember that it hasn't been a long time. We didn't even know who got into the shopping mall. So now with the advancement and all the integration of that ecosystem of reading the car plate, so you know who goes to the shopping mall and this is very valuable. The tenants started to contribute themselves so they can have more data of their own sales. So this is a system that is fitting on itself. So the best way of multi be monetized is through the growth of sales of the company. And this is happening already. There are people close to us that want to change the categories. So we created a good product that people want. And when people get into the shopping mall, if they get in through any of the automatic tags, they're not a client of shopping mall. Every client that gets in that are registered at Multi we have access to all of their trajectory throughout them all. So this gives us a quality of information that is incredible. Now in Christmas, we got a few people that registered their participation to visit the Christmas tree, and then the same day they came to Rio de Janeiro. We wouldn't know if it wasn't for this path that we created, and now we're trailing. So now I call your attention for the quality of the information. We already monetized, we brought some partners inside Multi. We're still at the beginning, but there is still a long ways ahead, but it generates a lot of representativeness. We have 5,600,000 people active in the program. I think it's very relevant. And to complete here, the same store rent, Rio One, that you commented you asked two questions the accumulated inflation the explanation of the real being lower is not due to the inflation that was transferred But today, answering your previous question, we had a comparison that was very high with the fourth quarter of 2024 that made this indicator higher. So, Gerald, how do I like to look at this? We have this track record since the opening of the capital in 2027, and we're going to have a growth of 3.5% real above the effect of the ITP. by the IGP effect lower nothing is just good there is the other side you have a balance You get an index that is lower of correction. It helps the shopping mall to be more competitive. So you attract more tenants. So the growth of rent, not only by the readjustment of inflation, but the valuing of the area. So this is a combination that we're looking. No concern about the real same-store rent that has been growing. The base of comparison for 2024. Did we answer your question? Yes. Next question is from . You may continue. Thank you for the opportunity to ask the question. Well, on our side, there's more to understand this issue of how the tenants are preparing themselves for the tax reform. So how is this discussion from the standpoint of the tenants and also understanding how do you see this issue of the reform in the condominium costs and expenses and CAPEX. Do you think that the tax reform will be a bit inflationary in costs and expenses? This is on our side. Thanks. So, on the side of the tenants, we are trying to understand everyone is trying to learn together. Of course, there's going to be a discussion, but this conversation. Now, in regards to the condominium, we have to understand that the tenants are different we know that with the communion with the option of trying to get the credits so paying uh the uh energy bills we're trying to get the credits for the taxes we're always going to try and repass this credit but sincerely we are seeing a transition And when we discuss the example of the taxes, this has to be discussed, but it's very preliminary. But certainly we are looking at this with a lot of diligence. Next question. So the next question is Tynan, Costa, UBS. Good morning, everyone. Can you hear me now? Okay. Good morning, Armando, everyone, all the team of Multiplan. I wanted to go back to one of the first points that Eduardo commented at the beginning of the call. The rest of the study for some expansions in 27. I think that the first one is what is the expectation of CAPEX for this project? What would be a trigger to continue with them? And the third would be giving a readout of this is trying to understand how decisive the election is for your capital structure allocation. So the company more leveraged in 2027, can we opt for a strategy more focused on dividends? or focus on growth, this would be on our side. Thanks. So the question of CAPEX, it's still very distant to talk about this. The projects are being elaborated. I can't just give you a pretty number, but We hope that in the future we're going to discuss this with more precision, but the important thing is to have the possibility of finding that opportunity of growth. We have these three expansions, but not only these three. It's obvious that the result of the election will change the mind of the company, If Brazil goes down the path of fiscal balance and we cannot continue to grow if the tenant doesn't believe in the future of the country. So we're working with the consequence of the retail market. So I cannot do the shopping mall alone. We need the tenants to believe in this future. So yes, the result of the election will influence the future of the company. You need to convince 50-150 tenants to move for an expansion that they believe that the country will continue to go down the fiscal balance and everything that we imagine that Brazil needs and about this point of Eduardo about the trigger having a demand for the space and then you have the return the capital allocation that generates it's not growing by growth for growth we want to generate higher returns Thank you. Next question will be in English. We're going to have Alejandra Obregon from Morgan Stanley. Alejandra, the floor is yours.

Hi, good morning, everyone. Thank you for taking my question. I guess what I wanted to ask is on your tenants and your long-term thinking around it. So wondering if you can elaborate on whether tenants are growing selective and whether the appetite from big brands, regardless if they're local or international, is changing for high productivity malls. And if so, How do you see the cadence of those trends shaping your future plans? Meaning, is it more divestments in minorities in some of the less A-rated locations? Is it greater concentration in some of the more prime assets and perhaps more expansions there? Or even are you thinking of changing how you structure contracts to capture that appetite? So that would be my question. Thank you.

So Alejandro, thank you for your question. Let's see if I could understand and answer everything that you just asked. So, it's clear that we have shopping malls with more productivity, presenting better results and bringing and attracting more tenants, attracting tenants that want to have their exposure being larger. Eduardo just answered the previous question. where he discussed of a tenant that had a participation with Parashopping.net wants to have more participation in the store that they sell the most so you're going to see situations such as this you can see situations of new brands whether if it's national whether if it's foreign going to the mall so the issue of monetizing the shopping malls it's not because We don't have that. Our shopping malls all are wonderful and we're always going to invest so that they're better and they're going to attract more brands. So this is an opportunity for business and shopping malls that we have 100% control. We don't have to change the management model. We can reinvest this in growth. what we've seen is where the participation is in a few enterprises with that we have a hundred percent and we want to invest in other assets and the growth of capex as it was in the big repurchase of shares that we've done i don't know if i answered all of your question but to make it clear the assets have a flight to call with clarity the data of a breast that shows our growth and the participation where it shows the productivity of our shopping malls growing more and more than the average of the industry demonstrates this clearly and this is in our report on page six which is clear thank you that was very clear Next question, Rafael Reuter, analyst of Safra. Rafael, can you proceed? Can you hear me? I have two questions. The first one, I wanted to talk about the expansion of modem B. I wanted to know if you can discuss how the spaces are, how they are allocated, how is the negotiation of allocation with the viability of the project. And the second one, I wanted to talk about Golden Lake. You delivered the first phase in December. The second phase is sold out, 70% of sales. Do you have anything to find on when we should get the launch of the third phase? Rafael, thank you for the questions. Let me start by Golden Lake. We reached with the sales that happened in January, and this part of February, we got to 73% of Lake. Eerie being sold. These are smaller apartments than Lake Victoria and for the phase that we're starting to build and we're starting to open the foundation is very good. We have 127 in total units so there is little units and you still have two years ahead so we're gonna get to the deliverables of 100% sold. The next step will be Lake Baikal. which are projects of an average size and with a higher threshold since we changed the parameter these spreads are going to have 29 floors so you're going to have an expectation of an of a result and higher efficiency of the project, because you decrease the cost of implementation of the base, which is a common area, plus the apartment, so it's more viable. This is a positive point. And the first question, just to remind you, Rafael, that at Golden Lake you're going to have about 1,500 families living there. So you're talking about 10,000 people going to the primary area of Barra Shopping School. It's a lot of people, and it's a decisive factor for the big tenants to position themselves in Barra Shopping. Morumbi Shopping. Well, I'm very satisfied with Morumbi Shopping. Fortunately, on the 18th of March, everybody will be invited and you can get to know the expansion of ModernBee. You have several brands that are important. There can be... It's healthy because you get someone else. The expansion wasn't a big expansion, but it is. going to re-qualify the shopping mall as a whole. So we have a very nice area for events for the food court where people can stay. You talk about a shopping mall that has 30 restaurants and it's going to go to 40. The numbers on Morumbi are impressive. So the return is aligned with what we expected. The work has worked along the deadlines with what was budgeted. For my big satisfaction, we managed to take the level of Marumbi to the level of Sao Paulo. So I felt before we started the reform and the expansion that the shopping mall was a bit below what it represents for Sao Paulo. Now it's along the same lines of sophistication that Sao Paulo requires of a shopping mall such as Monomi Shopping. And you will see in 40 days it will be ready We're very happy. It was very complex to do this expansion because we took a deck park that had the load for a car, which is 300 kilograms per square meter, and now you double that. So you need to reinforce with carbon fiber. It's a very complex work. The expansion is always difficult and you don't have a terrain that we're starting from zero. You need to do the work with a shopping mall working. But it's very important. It complements. At the moment that you can get what is missing for that shopping mall to be more complete. Thank you. Have a nice weekend.

Thank you for all the questions.

We're going to close now the Q&A session. And we invite the participants that still have questions to get in contact with the investor relations department. So I'd like to give the floor to Eduardo Perez for the closing of the session. So I'd like to thank everyone for their patience with the company. Thank you to the team that always seeks excellence in work and all the assets. This is the secret of Multiplan. We're never satisfied. We always want more, and we always want to be better. I confess that after these three years, I feel lighter for being able to deliver everything that we propose ourselves to do. I'd like to thank all of you. and guarantee that this is going to be another year of deliverables that are very strong of the company. Thank you very much. Thank you. The earnings of the fourth quarter of 2025 of Multiplan is closed.