Post on 29-May-2015
Investor PresentationJanuary 2011
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��HighlightsHighlights��MarketMarket OverviewOverview��CompanyCompany OverviewOverview��GrowthGrowth DriversDrivers��FinancialsFinancials
�Brazil Shopping Mall Industry Offers Strong Growth Potential• Market highly underdeveloped and underpenetrated
• Fragmented industry
• Very limited downside given the economics of the business
�BRMALLS is the Largest and the Best Operator in the Sector• Solid and consistent track record
• Diversified growth strategy through Acquisitions and Developments
• By far the best key performance indicators
• Fastest growing company
�BRMALLS Aims to Achieve an EBITDA of R$1 billion by 2013• Represents a 34.4% CAGR ’10-13 compared to 81.0% CAGR ‘06-09
• No need for additional equity issuance
• Does not include any large acquisitions
Highlights
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��HighlightsHighlights��Market OverviewMarket Overview��CompanyCompany OverviewOverview��GrowthGrowth DriversDrivers��FinancialsFinancials
2,180
1,290
828
297 289 219 16345
GLA per 1,000 inhabitants (m²)
USA Canada Australia Portugal Spain France Germany Brazil
5
Brazilian Mall industry offers strong potential for growt h and expansion
Source: ICSC 2008
Shopping Mall Industry
65.7%
57.5%
51.3%
25.9%
17.2%
% of Retail Sales in Shopping Malls (2008)
BrazilCanada USA Australia France
Source: ICSC 2008
September 2009: 18.3%
Brazilian Shopping Mall Industry
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Highly fragmented market of shopping malls offer si gnificant room for consolidation
2006 2007 2008 2009
13.4%22.0% 21.0% 21.4%
86.6%78.0% 79.0% 78.6%
Market Share - Shopping Mall s Local Industry
2009
BRMALLSMultiplanIguatemiOthers
78.6%
4.3%
5.6%
11.5%
2009
Top 3 Players
Others
41.6%
58.4%
Brazil USA
Top 3 Mall Players
Shopping Malls Sales
Gross Leasable Area
11.8%
8.8%
Shopping Malls Sales Growth vs. GLA (05 – 09 CAGR)
High Demand for New Developments
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Decreasing vacancy rates and high sales growth offe r huge potential for new developments
2003 2004 2005 2006 2007 2008 2009
5.7%
4.0%4.4%
2.9%3.1%
2.6%
2.0%
Brazil’s Vacancy Rate – Year End
*Source: ABRASCE
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Shopping Mall: A Safe Harbor
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
10.0 12.0 14.0 16.0 18.023.0
26.0
32.036.0
41.645.5
50.0
58.0
64.6
71.0
Sales Performance in the Shopping Mall Sector from 1995 – 2009 (R$ billion)
Average Inflation (1995-2009): 7.6%
Average GDP (1995-2009): 2.9%
Sales CAGR (1995-2009): 15.0%
• Avg. GDP (95-97): 3.3%
•Avg. Inflation (95-97): 12.4%
•Avg. Interest Rate (95-97): 34.5%
•Sales Growth CAGR (95-97): 18.3%
Mexican Crisis (1994) &
Asian Crisis (1997)
Russian Crisis (1998) &
Real Depreciation (1999)
• Avg. GDP (98-00): 1.5%
• Avg. Inflation (98-00): 5.5%
• Avg. Interest Rate (98-00): 21.3%
•Sales Growth CAGR (98-00): 20%
2002 Crisis – Lula Election
• Avg. GDP (03-05): 3.3%
• Avg. Inflation (03-05): 7.5%
• Avg. Interest Rate (03-05): 17.4%
•Sales Growth CAGR (03-05): 12%
Subprime Crisis(2008 and on)
•Avg. GDP (08-09): 2.4%
•Avg. Inflation (08-09): 5.1%
• Avg. Interest Rate (08-09):11.2%
•Sales Growth (08-09): 9.9%
Source: IPEA Data and ABRASCE
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��HighlightsHighlights��Market OverviewMarket Overview��CompanyCompany OverviewOverview��GrowthGrowth DriversDrivers��FinancialsFinancials
� Largest Shopping Mall Company in Latin America
• 39 regional malls
• 4 malls under development and 5 malls under expansion
• Total GLA: 1,173.2 thousand sq. m (1.4 million sq. m after exp. and development)
• Owned GLA: 600.4 thousand sq. m (728.2 thousand sq. m after exp. and development)
• Bovespa’s Novo Mercado (BRML3) and ADR Level 1 (BRMSY)
� Most Efficient Operator in the Sector
• Best EBITDA Margin: 83.4% x 66.5% of other firms in the sector (9M10)
• Lowest Occupancy Cost : 9.5% x 11.6% of other firms in the sector(9M10)
� The Fastest Growing Company in the Sector
• Largest EBITDA growth since its foundation: EBITDA CAGR (2006 –2009) of 77% x 29% of other players in the sector
• - EBITDA CAGR (9M10 x 9M07): 34.2% x 24.1% of other firms in the sector
BRMALLS’ presence
National Presence
Who we are
National Presence
10
373,480
292,200270,752
237,303
200,800
Top Players GLA (m²) - Year End 20061,173,179
544,703433,175 423,281
365,938
Top Players GLA (m²) - Current
Leading Player in the Sector in 4 Years
BRMALLS became the largest Brazilian shopping mall company in 4 years
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Best Mall Operator in the Sector
BRMALLS has the best performance indicators in the sector
BRMALLS Multiplan Iguatemi Aliansce
92.4%
86.7% 86.6%
90.0%
9M10 NOI Margin*
BRMALLS Multiplan Iguatemi Aliansce
9.5%
13.3%
11.5%
10.1%
9M10 Occupancy Cost (as % of tenants sales)
BRMALLS Multiplan Iguatemi Aliansce
7.0%
4.9%
6.2%6.5%
9M10 Same Store Rent (% growth)
BRMALLS Multiplan Iguatemi Aliansce
83.4%
56.2%
77.0%
66.5%
9M10 EBITDA Margin*
* Under comparable basis.
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Best Mall Operator in the Sector
BRMALLS Multiplan Iguatemi
77.0%
28.0% 30.0%
EBITDA CAGR (%) - 2006 to 2009
BRMALLS Multiplan Iguatemi Aliansce
10.9%
6.5%
8.9%
5.6%
Return on Equity (ROE) – 9M10 annualized
185
81
146
75
100
125
150
175
200
1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10
BR Malls Multiplan Iguatemi
166
117
134
60
80
100
120
140
160
1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10
BR Malls Multiplan Iguatemi
EBITDA / m² EBITDA Margin (%)
13
-
100.0
200.0
300.0
400.0
500.0
600.0
700.0
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
FFOPS (R$ cents/share)
BRMALLS Multiplan Iguatemi
Best Mall Operator in the Sector
486
140
132
Our FFO/share more than tripled since 2007
14
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
7.6%8.3%
9.5%
12.4%13.4%
12.3% 12.0%
9.9%8.8% 8.6% 8.0%
10.1% 10.1%
Same Store Rent Growth (%)
Sales and Rent Performance
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Same Store Rent (%) IGP-M (%)
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 2009 1Q10 2Q10 3Q10 4Q10
9.6%10.7% 10.8%
12.7%
8.8%
3.5%6.4%
5.1%
11.0%
7.0%
16.2%13.2%
16.6%
11.8%
Same Store Sales Growth (%)
Company with Highest Liquidity
16
BRMALLS Multiplan Iguatemi Aliansce
43.3
14.7
9.7
2.6
Avg. Daily Traded Volume – December 2010 (R$ million)
BRMALLS Multiplan Iguatemi Aliansce
94%
37%25%
36%
Free Float (% of total shares)
National Presence
17
Number of Malls 39
Total GLA (m²) 1,173,179
Owned GLA (m²) 600,381
Northeast RegionPopulation: 53,477,000
Share of Brazilian Retail Sales: 18.0%
YoY Total Sales Growth: 5.9%
% of Total GLA: 12.5%
% of NOI: 7.1%
Southeast RegionPopulation: 79,751,000
Share of Brazilian Retail Sales: 52.0%
YoY Total Sales Growth: 5.6%
% of Total GLA: 59.9%
% of NOI: 77.3%
South RegionPopulation: 27,539,000
Share of Brazilian Retail Sales: 17.0%
YoY Total Sales Growth: 4.3%
% of Total GLA: 12.6%
% of NOI: 7.2%
Central-West RegionPopulation: 13,751,000
Share of Brazilian Retail Sales: 8.0%
YoY Total Sales Growth: 5.6%
% of Total GLA: 10.3%
% of NOI: 7.2%
North RegionPopulation: 15,313,000
Share of Brazilian Retail Sales: 5.0%
YoY Total Sales Growth: 3.2%
% of Total GLA: 4.7%
% of NOI: 1.2%
Focus on the Middle Class
Share of Brazil´s Total Population Number of Malls Owned GLA (m²)
% of Total Owned GLA (m²)
% ofBRMALLS NOI
67.0%
4.6%
28.4%
A
B
C / D
8
3
28
41,783
34,264
524,334
7.0%
5.7%
87.3%
5.2%
7.0%
87.8%
39 600,381 100% 100%
*Source: IBGE 2008
A: > 15 minimum wages (> R$7,650)
B: >5 – 15 minimum wages ( > R$2,550 – R$7,650)
C: >3 – 5 minimum wages ( > R$1,530 – R$2,550)
D: 1-3 minimum wages ( > R$510 – R$1,530)
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��HighlightsHighlights��Market OverviewMarket Overview��Company OverviewCompany Overview��GrowthGrowth DriversDrivers��FinancialsFinancials
BRMALLS Aims to Achieve an EBITDA of R$1 billion by 2013
• Considers R$250 million investment in acquisitions per year
• Assumes 2 greenfield projects being open each year
• Same-Mall NOI growth of 6% in real terms per year
• No need for additional equity issuance
• This represents a 34.4% CAGR ’10-13 compared to 81.0%
CAGR ‘06-09
Our Mission
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9M10 -annualized
4Q10 -realized
2011 2012 2013 Total
455,111
609,310
79,200
25,000
25,000
25,000
NOI growth until 2013 through acquisitions(R$ million)
2010 2011 2012 2013 Total
593,238
674,406
27,056
27,056
27,056
GLA growth until 2013 through acquisitions(m²)
Growth via Acquistions
21
Acquisitions can increase our GLA by 14% and NOI by 34% until 2013
* *
* Estimates consider R$250 million in acquisitions on 2011, 2012 and 2013.
Greenfield and Expansion Projects
22
New developments will increase our GLA by 29% and N OI by 47% until 2013
Summary of already announced projects (5 expansions and 4 greenfield projects):
Stabilized NOIR$146,8million
Owned GLA127,771 m²
Average Ownership61.9%
Total GLA206,176 m²
2010 2011 2012 2013 Total
593,238
764,076
57,885
58,387
54,565
GLA growth until 2013 through developments(m²)
9M10 -annualized
4Q10 -realized
2011 2012 2013 Total
455,111
668,795
31,500
54,873
71,000
56,312
NOI growth until 2013 through developments(R$ million)* *
* Estimates consider two greenfield projects to be announced opening in 2013.
Recently Opened Greenfields
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Mall Information:
• Total GLA (m²): 16,431
• Owned GLA (m²): 11,502• Stores: 120
•Leasing Status: 100%• Opening Date: October 5th
• NOI : R$ 8 million• Total CAPEX : R$ 49 million
• IRR: 19% (real, unleveraged)• Cash on Cash : 22%
Recently Opened Greenfields
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Mall Information:
• Total GLA (m²): 29,042
• Owned GLA (m²): 20,924• Stores: 184
•Opening Date : November 24th• Stab. NOI : R$ 29.2 million
• Total CAPEX : R$ 173 million• CAPEX Status : 62%
• IRR: 16.5% (real, unleveraged)• Cash on Cash : 19.1%
Greenfields Under Development
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Regional Information:
• Population: 1.0 million
• Consumption potential: R$3.6 billion per year
Mall Information:
•Landbank (m²): 25,000
• Total GLA (m²): 29,207•Owned GLA (m²): 14,311
• Leasing Status: 88.2%• Expected Opening: 2Q11
• Stab. NOI: R$ 13.2 million
Greenfields Under Development
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Regional Information:
• Population: 750 thousand
• Consumption potential: R$1.5 billion per year
Mall Information:
• Landbank (m²): 112,000
• Total GLA (m²): 41,942• Owned GLA (m²): 25,165
• Construction Status: 27%• Leasing Status: 63.8%
• Expected Opening: 4Q11• Stabilized NOI: R$31.3 million
• IRR (real and unleveraged): 18%
Greenfields Under Development
27
Regional Information:
• Population: 2.4 million
• Consumption potential: R$3.0 billion per year
Mall Information:
• Total GLA (m²): 36,188
• Owned GLA (m²): 21,713• Construction Status: 12%
• Leasing Status: 56.7%• Expected Opening: 2Q12
• Stabilized NOI: R$21.6 million• IRR (real and unleveraged): 19.3%
Greenfields Under Development
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Regional Information:
• Population: 750 thousand
• Consumption potential: R$4.2 billion per year
Mall Information:
• Total GLA (m²): 42,586
• Owned GLA (m²): 25,552• Expected Opening: 2Q12
• Stabilized NOI: R$28.7 million• IRR (real and unleveraged): 17.1%
Recently Opened Expansions
29
West Shopping
• Total GLA: 9,608 m²• Owned GLA: 2,882 m²• Inauguration: 2Q10
Maceió Shopping
• Total GLA: 9,819 m²• Owned GLA: 2,455 m²• Inauguration: 2Q10
Expansions Under Development
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Current Mall
• Total GLA: 31,635
• Owned GLA: 31,635• Occupancy rate: 100%
• Late payments (30 days): 0.4%• Monthly Sales (per m ²): R$1,000
• % of BRMALLS NOI: 6%• LS: > 20%
• SSR: 12%
Expansion:
• Total GLA (m²): 14,839
• Owned GLA (m²): 14,839• Expected Opening : 2Q11
• Construction Status : 57%• Leasing Status: 98.2%
Expansions Under Development
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Shopping Campo Grande
• Total GLA: 5,280 m²• Owned GLA: 3,569 m²• Inauguration: 4Q11
Plaza Shopping
• Total GLA: 11,123 m²• Owned GLA: 11,123 m²• Inauguration: 4Q12
Expansions Under Development
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Top Shopping
• Total GLA: 15,366 m²• Owned GLA: 7,668 m²• Inauguration: 1Q13
Osasco Plaza Shopping
• Total GLA: 9,675 m²• Owned GLA: 3,831 m²• Inauguration: To be defined
Multi-Use Projects
Over R$165 million in revenues from multi-use proje cts expected over the next 6 years
Tamboré
Campo Grande
Goiânia
SalesVolume(R$ MM)
% BRMALLS(R$ MM)
#Towers
104.0 20.9 1
54.7 9.8 1
7.1 0.6 1
2011
Tamboré
Caxias do Sul
Piracicaba
SalesVolume(R$ MM)
% BRMALLS(R$ MM)
#Towers
174.3 35.1 2
40.0 2.7 1
39.8 1.4 2
NorteShopping
Top Shopping
Independência
105.4 5.0 1
0.1 1
27.5 3.5 1
21.7
2012
Fashion Mall
Campinas
São Bernardo
SalesVolume(R$ MM)
% BRMALLS(R$ MM)
#Towers
101.7 24.2 2
44.7 6.7 1
80.0 8.6 5
Tamboré
Granja Vianna
Top Shopping
174.3 35.1 2
5.0 1
43.5 2.0 2
28.0
Mooca Plaza 64.0 6.9 4
2013-2016Total 165.8 31.3 3
Total 408.7 47.8 8
Total 536.2 88.5 17
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CAPEX Schedule
BRMALLS will disburse R$634 million with the announ ced projects over the next 2 years
Ban
kT
ype
Ter
mC
ost
% o
fCA
PE
XA
mou
nt
Itaú-Unibanco Santander Santander
CRI Project Finance Project Finance
12 years 10 years 10 years
IGP-M + 7.75% 93.95% CDI IGP-M + 8.3%
77.8% 67.7% 58.4%
R$ 92.5 million R$ 32 million R$94.6 million
Bradesco
Project Finance
12 years
TR + 9.8%
69%
R$115 million
Total Amount Financed: R$ 334.1 million
Already disbursed
4Q10 2011 2012 2013 Total
302.5
936.3
129.4
297.4
205.5 1.5
CAPEX Disbursement Schedule (R$ million)
34
9M10 -annualized
4Q10 -realized
2011 2012 2013 Total
455,111
822,994
110,700
79,872
95,999
81,311
NOI growth until 2013 (R$ million)
2010 2011 2012 2013 Total
593,238
845,244
84,941
85,443
81,621
GLA growth until 2013 (m²)
Where We Expect to Be in 2013
35
New Developments and Acquisitions should increase o ur GLA by 42% and NOI by 81% until 2013
* *
* Estimates consider R$250 milion in acquisitions on 2011, 2012 and 2013 and two greenfield projects to be announced opening in 2013.
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��HighlightsHighlights��Market OverviewMarket Overview��Company OverviewCompany Overview��GrowthGrowth DriversDrivers��FinancialsFinancials
Financial Highlights
Solid and consistent NOI growth…
2006 2007 2008 2009
74
172
288
362
9M09 9M10
254
320
NOI (R$ million)
CAGR: 70.0% 25.9%
37
9M09 9M10
93
115
Financial Highlights
...concentrated in managed malls, which represents over 90% of our NOI
Same Mall NOI (R$ million)
23.9%
Other Malls Managed Malls
11.8%
24.4%
38
2006 2007 2008 2009
54
141
240
319
9M09 9M10
217
289
Financial Highlights
Very strong EBTIDA and Margin growth…
Adjusted EBITDA and Adjusted EBITDA Margin (R$ mil lion)
CAGR: 81.0% 33.8%
63%68%
75% 81%80% 81%
39
2006 2007 2008 2009
40
79
139
233
9M09 9M10
146
215
Financial Highlights
… with consistent increase in FFO and operating marg ins
Adjusted FFO and AFFO Margin (R$ million)
CAGR: 80.0%
47.3%
47%
38%44%
59%
53%
60%
40
Capital Structure
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 onwards
27.6
111.0 113.6
187.8 182.2 172.4 169.0
87.3 85.0 73.5
26.7 6.7
298.4
Amortization Schedule (R$ million)
IPCA20.8%
USD19.7%
IGP-M22.1%
TJLP1.0%
CDI3.1%
TR33.3%
Fixed (R$)0.0%
Debt Indices (% of the total)
Cash R$756.6 million
Gross Debt R$1,541.2 million
Net Debt R$ 784.6 millionNet Debt / EBITDA 1.19x
Average Yield 101.8%
Average Debt Duration 11 years
Average Debt Cost IGP-M + 7.63%
Notes: 1- Coupon hedge (5 years) of perpetual bond through a simple cash flow swap, exchanging our position from USD+9.75% to 109.3% of CDI for 3 years and 100.3% of CDI for 2 last years2- Assumes payment of perpetual bond on 2022
1
2
1
3Q10
41
2011
682
549
80.6%
341
Average Estimates (R$ million)
Analysts that includes acquisitions in their models: Citi, Itaú, Santander, Bradesco, Votorantim, BTG, Merrill Lynch, Goldman Sachs, Deutsche Bank and Raymond JamesAnalysts that excludes acquisitions in their models : UBS, Morgan Stanley, Credit Suisse, Banco Fator and Barclays Capital *FFO estimates do not consider exchange variation and swap adjusted to market value
Net Revenues
EBITDA
FFO*
EBITDA Mg.
605
466
77.0%
348
Net Revenues
EBITDA
FFO*
EBITDA Mg.
742
581
78.2%
436
Net Revenues
EBITDA
FFO*
EBITDA Mg.
846
688
81.2%
437
Net Revenues
EBITDA
FFO*
EBITDA Mg.
Net Revenues
EBITDA
FFO*
EBITDA Mg.
656
522
79.5%
343
822
663
80.6%
437
Market Consensus
42
2012
2011
2012
Including Acquisitions Excluding Acquisitions
20112012
Market Consensus (R$ million)
Net Revenues EBITDA AFFO
25.3%27.1% 27.3%
Growth 2011-2012
IR Contacts
Leandro Bousquet – CFO and IROPhone: 55 21 3138-9997E-mail: leandro.bousquet@brmalls.com.br
Derek Tang – CoordinatorPhone: 55 21 3138-9914E-mail: derek.tang@brmalls.com.br
Leonardo Vazquez – AnalystPhone: 55 21 3138-9992E-mail: leonardo.vazquez@brmalls.com.br
Bruno CaniPhone: 55 21 3138-9939E-mail: bruno.cani@brmalls.com.br
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This material has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should notbe treated as giving investment advice. It is not targeted to the specific investment objectives, financial situation or particular needs of any recipient. Norepresentation or warranty, either express or implied, is made as to the accuracy, completeness or reliability of the information contained herein. It should not beregarded by recipients as a substitute for the exercise of their own judgment. Any opinions or information expressed in this material are subject to change withoutnotice and BR Malls Participações S.A. (“BR Malls”) is not under any obligation to update or keep current the information contained herein.
This material is for distribution only to persons who (i) have professional experience in matters relating to investments falling within Article 19(5) of the FinancialServices and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order"), (ii) are persons falling within Article 49(2)(a) to (d)("high net worth companies, unincorporated associations etc") of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whoman invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection withthe issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as"relevant persons"). This material is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Anyinvestment or investment activity to which this material relates is available only to relevant persons and will be engaged in only with relevant persons.
You should consult your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem necessary, and you mustmake your own investment, hedging of trading decision regarding the Transaction based upon your own judgment and advice from such advisers as you deemnecessary and not upon any view expressed in this material.
This material includes forward-looking statements subject to risks and uncertainties, which are based on current expectations and projections about future eventsand trends that may affect BR Malls’ business, financial condition, results of operations, liquidity, prospects and/or the market value of our common shares andGDSs. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance orachievements, and may contain words like “believe”, “anticipate”, “expect”, “envisage”, “estimate”, “intend”, “may”, “will”, “continue” or any other words orphrases of similar meaning. These statements include projections and forecasts about general economic, political and social conditions in Brazil, as well asinformation about competitive position, the regulatory environment, potential opportunities for growth and other matters. The statements were prepared on thebasis of management’s present knowledge and assumptions which management believes to be reasonable. For purposes of preparing these projections andforecasts, management made certain assumptions about general business and economic conditions, the outcome of which neither management nor any otherperson can predict with any certainty. These assumptions and the other assumptions upon which the projections are based are inherently subject to significantuncertainties. Therefore, the projections are not necessarily an indication of our future performance. Neither BR Malls nor any other person assumes anyresponsibility for their accuracy and, accordingly, none of such persons is making (and you should not infer otherwise) any representation about the likely existenceof any particular future set of facts or circumstances. Because of these uncertainties, the investors shall not take any investment decision based on these estimatesand forward-looking statements. BR Malls does not intend to provide future holders of GDSs or common shares with any revised projections or forecasts or analysisof the differences between such projections and forecasts and its actual operating results.
Disclaimer
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