2Q08

Earnings Release
2Q08
English

Teleconference August 14, 2008

10:30 am (Braslia) 9:30 am (US EST) Tel.: +1 (973) 935-8893 Replay: +1 (706) 645-9291 Code: 57096995

2Q08

Structure
CHAIRMAN & CEO
Jos Isaac Peres
45 Yr Experience on Real Estate Market

COO Eduardo K. Peres

20 Yr Experience on Shopping Center Market

CIO Marcello K. Barnes

18 Yr Experience on Real Estate and Shopping Center Market

CFO & IRO

Armando dAlmeida Neto

25 Yr Experience on Financial Market

MULT3

2Q08

SHOPPING CENTERS AND OPERATIONS

INVESTMENTS AND DEVELOPMENTS

COMPANY AND INVESTOR RELATIONS

2Q08

Brazil
13.0% 12.0% 11.0%

Market Watch
11.8% 11.8%
11.8% 11.7% 11.6% 11.5% 11.4% 10.5% 11.3% 11.2% 11.1% 11.0%

Multiplan
Sales

12.8% 11.8%

Interest rate increased, Retail slowed down...

10.0% 9.0% 8.0%

11.0% 11.3% 11.3% 11.3% 8.7%

Jan-08 Feb-08 Mar-08 Apr-08 May-08

Selic Retail Sales Grow th

... and Multiplan malls sales still with double digit growth

+ 20.4%
1.169.981

971.737

Source: IBGE - Accumulated 12 months; BACEN

IGP-DI, 14.0%

2Q07
Rent
9,5% 9,0% 8,5%

2Q08
9,0%

Source: IBGE and FGV

IPCA, 6.1%

Real growth of 179 bps

7,2%

8,0%

Inflation picked up
Jul/07 Aug/07 Nov/07 Oct/07 Dec/07 Mar/08 Apr/08 Sep/07 May/08 Feb/08 Jun/08 Jan/08

... and rent outperform it!

7,5%

7,0%

6,5%

6,0%

IGP-DI

IPCA

The IGP-DI renewal effect is the weighed average of the monthly IGPDI increase, by the percentage GLA renewed on the respective month

IGP-DI Renewal Effect

SSR 2Q08

Before

After

Merchandising (Specialty income)

+ 66.7%

New laws reduced outdoors in the street

11.395

... creating opportunities to our SC

6.838

2Q07

2Q08
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2Q08

Tenants: Higher Sales, Higher Revenues

Gross Revenue Growth (R$ 000)
130,000

Gross and Rent Revenue Breakdown

113,984

+26.5% +79.2% +79.4% +52.9% -100% +9,600 +3,858 +5,056 -5,188

120,000

110,000

+14,404
100,000 90,000

Parking Revenue 13.0% Key money 7.6% Service Revenue 19.1% Rent 60.3%

+ 32.1%

86,254

Minimum 79.3% Overage 4.1% Merchandising 16.6%

80,000

70,000

60,000

50,000

Gross Revenue 2Q07

Rent

Services

Key Parking Real Gross Money Estate Revenue Sales 2Q08

Rent Revenue Growth (R$000)

+20.7%
70,000

+20.9%

+66.7% +4,558 68,772

Same Store Basis Analysis

65,000

+9,357

+490

+ 11.4%
3.057 R$/sq. m

+ 9.0%
237 R$/sq. m

60,000

54,368
55,000

+26.5%

2.744 R$/sq. m 2Q07

217 R$/sq. m

50,000

2Q08

2Q07

2Q08

45,000

Rent 2Q07

Minimum

Overage Merchandising Rent 2Q08

Same Store Sales (R$/sq.m.)

Same Store Rent (R$/sq.m.)

2Q08

Merchandising and Parking: New Stars

Merchandising: Growth Confirmed
Merchandising Revenue - (R$ 000)

Parking: New operations

Net Parking Income - (R$ 000)
12.000 11.000

17,455
10.000

+52.0% +66.7% 11,395 11,485

14,403 +143.7% 8,179 6,270

9.000

8.000

+86.7%

7.000

6.000

6,838 2Q07 2Q08 1H07 1H08

5.000

4.000

4,662 2Q07 2Q08

3.000

2.000

1H07

1H08

Why we are an excellent Option

Clean City Law Focus on the target customer Brand Experience

Some Reasons for the Increase New operations in Park ShoppingBarigui and Shopping Anlia Franco Longer stay period Higher ticket price

Before

After

Ptio Savassi acquisition

New interest acquired ...and two shopping centers not yet charging.
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2Q08

SHOPPING CENTERS AND OPERATIONS INVESTMENTS AND DEVELOPMENTS

COMPANY AND INVESTOR RELATIONS

2Q08

Investment Strategy
Development Pipeline (000 sq.m.)
+ 60%
450 m

Shopping Centers/Expansions
426 404 426

7 expansions under development

+ 43,809 sq.m.

400 m

4 expansions approved
2 malls under construction 2 malls under approval

+ 40,336 sq.m.
+ 80,879 sq.m. + 61,811 sq.m. + 905.198 sq.m.
100% Project

350 m

328 266

340

354

366

300 m

New Mall Development Mall Expansions

250 m

Not considering lands for mixed-use projects

2H14 Future

200 m

Current

2H08

1H09

2H09

1H10

2H10

Use of Proceeds (R$ '000)

2007

2008

2009

2010

Renovation
Shopping Development Shopping Expansion Land Acquisition Shopping Acquisition and Minority Acquisition Working Capital Total

22,814
102,646 11,431 16,183 287,765 44,114 484,953

54,800
259,154 138,903 225,832 28,668 707,359

10,518
133,697 60,901 205,116

6,964

Reference > 2008 BHS, RBS, BRS, MBS, PKS, DMM, NYCC, SAF, PKB, PSV, Headquarters

77,450 BSS, SVO, Macei, LagoSul 2,848 87,262

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BHS, SAF, PKS Fashion, PKS Frontal, RBS, PKS Gourmet, PKB Gourmet Barra da Tijuca, So Caetano, Jundia, Campo Grande Santarsula General

2Q08

Projects Under Development: Great Success!

Greenfield Investments (R$ 000)

Expansion Investments (R$ 000)

+ 141%

73,142

+ 282%

17,207

30,297

4,510

1Q08

2Q08

1Q08

2Q08

Stores Leased
To be leased 18%

(Out of approx. 800 new stores)

Investment Breakdown in 2Q08

(R$140.1 million)
Acquisitions 20% Renovations 14%

Lands 1%

Leased 82%

Expansions 12%

New shopping centers 53%

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2Q08

Acquisition Analysis: One Year of Ptio Savassi

Strategy Synergy Improves the Malls in the State of Minas Gerais
Sales R$/Sq.m.
35.56%

Shoppings Portfolio

32.30%

Take control of management To bring standards & procedures Mix improvement Positive contract renewals Market segmentation Cap-In Ptio Savassi
14.0%
Ptio PSS Savassi BH Shopping BHS Diamond Mall DMM
16.23%
13.57%

Positive Outlook
331

Rent / Sq.m. R$ (2Q08)

308

6.9%

7.6%

+38% +28%
240

Expected

1 year with MTE

Target IRR

BH Shopping

Ptio Savassi

Diamond Mall

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2Q08

Mixed-Use Projects and Land Bank

Cristal Tower Porto Alegre (RS) Land Bank
Location
ParkShoppingBarigi Maceio BarraShoppingSul RibeiroShopping

%
84% 50% 100% 100% 50% 36% 100% 94% 100% 100%

Type
Apart-Hotel Res., Com., Hotel Res., Com., Hotel Res., Com., Medical Residencial Residencial Commercial Commercial Commercial Commercial

Area
843 sq.m 130,000 sq.m. 16,164 sq.m 200,970 sq.m 338,913 sq.m 29,800 sq.m 21,554 sq.m 27,370 sq.m 36,748 sq.m 45,000 sq.m

Cristal Tower aerial perspective

Bridge connecting Cristal Tower to BarraShoppingSul.

Campo Grande Shopping AnliaFranco MorumbiShopping

Complexo BarraShoppingSul

ParkShoppingBarigi Barra da Tijuca Jundia

So Caetano
Total

100%
72%

Commercial

57,836 sq.m
905,198 sq.m

Complexo BSS (Futuro): dois prdios residenciais, um comercial e um hotel BarraShoppingSul complex

Contracs with ground lease or buy option are not included

BarraShopping Complex
Project Details
Opening Private area to be sold Total Sell Out

(MTE %)
First half of 2011 11,915 sq.m Over R$ 70 million
Barra Shopping
Centro Empresarial Barra Shopping

Royal Green Pennsula

New York City Center

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2Q08

SHOPPING CENTERS AND OPERATIONS INVESTMENTS AND DEVELOPMENTS

COMPANY AND INVESTOR RELATIONS

12

2Q08

New NOI Model: Transparency and Leadership

NOI Performance & Margin (R$ 000)
+ 31.5% 64,057 48,109 + 19.3% 73,097 60,684

User-friendly Approach

85.6%
83.2% 82.5% 1Q07 2Q07 Net Operating Income (NOI)

85.0%

Rent Revenue + Net Parking Shopping Expenses

= NOI
NOI + KM

2Q07 2Q08 NOI + Key Money

NOI = + Key Money Contracts Signed

Adjusted Net Income* (R$ 000)

+ 39.3%
120.000

Adjusted EBITDA & Margin* (R$ 000)

104,122
Adjusted EBITDA
70,000

Adjusted EBITDAMargin

100.000

+ 48.3% 53,703

74,746

+38.2% 45,465

62,813

62.0%

80.000

60,000 61.0%

50,000

60.000

36,214
40.000

60.0% 40,000

60.3%
59.0%

30,000

20.000

20,000

57.7%
-

58.0%

10,000

2Q07

2Q08

1H07

1H08

57.0%

* Adjusted by IPO expenses, amortization and differed taxes

2Q07 * Not considering IPO expenses

2Q08

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2Q08

Development Financing: Looking Forward

Funds from Operations (FFO) (R$ 000)
+ 40.8%
140.000

Investment vs Cash Generation (R$ 000)

863,663 709,704

900.000

119,954
120.000

+ 49.3%

100.000

85,202 61,951 41,498

80.000

5x FFO 1H08 599,770

60.000

Investments 2H08 until 2010

40.000

20.000

Cash in Jun-08
-

263,893 2Q07 2Q08 1H07 1H08 Cash Investments

S&P Rating

brAA-/Stable
(Brazilian National Scale)

BB/Stable
(Global Scale)

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2Q08

Awards
Best Construction Company of Brazil! Top 20 Best Marketing Companies in Brazil!

Multiplan was elected as one of the 25 best companies in Brazil and the best construction company, according to Valor Econmico.

Multiplan was awarded with a prize due to its Marketing work through the last 20 years.

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2Q08

Main Figures
Financials (MTE %) Gross Revenue Net Revenue Headquarters Rent Revenue Rent Revenue/sq.m. Adjusted EBITDA Adjusted EBITDA/sq.m. Adjusted EBITDA Margin Shopping EBITDA Shopping EBITDA/sq.m. Shopping EBITDA Margin Adjusted FFO Adjusted FFO/sq.m. Performance (100%) Adjusted Total GLA Adjusted Own GLA Rent Revenue Rent Revenue /sq.m. Total Sales Total Sales/sq.m. Same Stores Sales/m Same Stores Rent/m Occupancy Costs Rent as Sales % Others as Sales % Turnover Occupancy Rate Delinquency 2Q08 113.984 104.107 27.260 68.772 273 R$/m 62.813 249 R$/m 60,3% 63.041 250 R$/m 69,2% 61.951 246 R$/m 2Q08 402.016 m 251.914 m 108.922 271 R$/m 1.169.981 2.910 R$/m 3.057 R$/m 237 R$/m 12,6% 7,7% 5,0% 1,5% 97,6% 3,9% 2Q07 86.254 78.764 15.620 54.368 248 R$/m 45.464 208 R$/m 57,7% 43.847 200 R$/m 67,2% 41.498 189 R$/m 2Q07 379.214 m 219.006 m 89.866 237 R$/m 971.737 2.562 R$/m 2.744 R$/m 217 R$/m 12,8% 8,2% 4,6% 0,8% 97,6% 5,3% Chg. % 32,2% 32,2% 74,5% 26,5% 10,0% 38,2% 20,1% 2,6 p.p 43,8% 25,0% 1,9 p.p 49,3% 29,8% Chg. % 6,0% 15,0% 21,2% 14,3% 20,4% 13,6% 11,4% 9,0% 0,1 p.p 0,5 p.p 0,4 p.p 0,7 p.p 0,0 p.p 1,4 p.p 1H08 203.323 184.998 38.973 129.336 513 R$/m 114.038 453 R$/m 61,6% 108.959 433 R$/m 67,7% 119.954 476 R$/m 1H08 402.016 m 251.914 m 205.349 511 R$/m 2.215.423 5.511 R$/m 5.931 R$/m 471 R$/m 14,0% 9,0% 5,0% 2,6% 97,6% 3,6% 1H07 163.347 149.128 24.330 106.821 488 R$/m 96.013 438 R$/m 64,4% 91.132 416 R$/m 71,7% 85.202 389 R$/m 1H07 379.214 m 219.006 m 171.806 453 R$/m 1.836.379 4.843 R$/m 5.283 R$/m 436 R$/m 13,1% 8,0% 5,1% 1,6% 97,6% 5,9% Chg. % 24,5% 24,1% 60,2% 21,1% 5,3% 18,8% 3,3% 2,7 p.p 19,6% 3,9% 4,0 p.p 40,8% 22,4% Chg. % 6,0% 15,0% 19,5% 12,7% 20,6% 13,8% 12,3% 8,2% 0,9 p.p 1,0 p.p 0,1 p.p 1,0 p.p 0,0 p.p 2,4 p.p

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2Q08

IR Contact
Armando dAlmeida Neto
CFO and Investors Relation Director

Planning & Investor Relations Manager

Hans Christian Melchers Rodrigo Tiraboschi

Investor Relations Analyst Senior

E-mail: ri@multiplan.com.br

Tel.: +55 (21) 3031-5224 Fax: +55 (21) 3031-5322

http://www.multiplan.com.br/ri
Disclaimer
This document may contain prospective statements. which are subject to risks and uncertainties. as they were based on expectations of the Companys management and on available information. These prospects include statements concerning our managements current intentions or expectations. Readers/investors should be aware that many factors may mean that our future results differ from the forward-looking statements in this document. The Company has no obligation to update said statements. The words "anticipate, wish, "expect, foresee, intend, "plan, "predict, forecast, aim" and similar words are intended to identify affirmations. Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors and values that can establish these results are outside the companys control or expectation. The reader/investor is encouraged not to completely rely on the information above.
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