Aliansce Investor Presentation

2014

Portfolio Overview
Aliansce owns an extensive and balanced portfolio of shopping malls, totaling 445.3 thousand sqm
of owned GLA
Mature Assets (Malls with more than 5 years of operating history)
Caxias Shopping

Shopping Iguatemi
Salvador

Shopping Taboo

Shopping
Grande Rio

Via Parque
Shopping

Carioca Shopping

Shopping
West Plaza

Bangu Shopping

Santana Parque
Shopping

Caxias Shopping

New Generation Assets (Malls with less than 5 years of operating history)
Indicates Aliansces presence

Shopping
Santa rsula

Boulevard Shopping
Braslia

Boulevard Shopping
Belm

Boulevard Shopping
Belo Horizonte

Boulevard Shopping
Campos

Parque Shopping
Belm

Boulevard Shopping
Vila Velha

Boulevard Shopping
Naes Bauru

Parque Shopping
Macei

Shopping Parangaba

Third Party Malls (Managed by Aliansce)

Shopping Leblon

Shopping Jequitib

Shopping
Park Lagos

Boulevard Shopping
Feira de Santana

Shopping
Park Europeu

Boulevard Shopping
Vitria da Conquista*

Continental Shopping

Passeio Shopping

Santa Cruz Shopping

Moinhos Shopping

Floripa Shopping

Boulevard Shopping So
Gonalo

*Under Development

Ptio Alcntara

Portfolio Overview
Extensive governance with an average ownership of approximately 65.9% of its consolidated portfolio

Portfolio em Operao

Estado

Ativos Mature - Mais de 5 anos de histrico operacional

% Aliansce

ABL
(m)

ABL Prpria Taxa de Prestao de

(m)
Ocupao
Servios

68.87%

366,581

252,482

99.2%

Shopping Iguatemi Salvador

BA

70.78%

64,695

45,795

99.8%

A/C

Shopping Taboo

SP

78.00%

36,667

28,600

100.0%

A / C / CSC

Via Parque Shopping

RJ

72.87%

56,471

41,150

99.6%

A / C / CSC

Shopping Grande Rio

RJ

25.00%

36,771

9,193

99.6%

A / C / CSC

Carioca Shopping

RJ

100.00%

23,805

23,805

99.1%

A / C / CSC

Shopping West Plaza

SP

25.00%

33,671

8,418

97.7%

A / C / CSC

Bangu Shopping

RJ

100.00%

53,025

53,025

99.7%

A / C / CSC

Santana Parque Shopping

SP

50.00%

26,523

13,261

97.6%

A/C

Caxias Shopping

RJ

89.00%

25,558

22,747

98.3%

A / C / CSC

n/a

69.05%

9,395

6,488

100.0%

n/a

62.42%

308,950

192,844

94.9%

Lojas C&A
Nova Gerao de Ativos - Menos de 5 anos de histrico operacional
Shopping Santa rsula

SP

37.50%

23,057

8,646

95.9%

Boulevard Shopping Braslia

DF

50.00%

17,002

8,501

96.2%

A / C / CSC

Boulevard Shopping Belm

PA

75.00%

39,441

29,580

94.0%

A / C / CSC

Boulevard Shopping Belo Horizonte

MG

70.00%

43,016

30,111

95.3%

A / C / CSC

Boulevard Shopping Campos

RJ

100.00%

24,762

24,762

94.7%

A / C / CSC

Parque Shopping Belm

PA

50.00%

31,028

15,514

97.1%

A / C / CSC

Boulevard Shopping Vila Velha

ES

50.00%

33,600

16,800

94.8%

A / C / CSC

Boulevard Shopping Naes Bauru

SP

100.00%

27,256

27,256

95.6%

A / C / CSC

Parque Shopping Macei

AL

50.00%

37,580

18,790

95.1%

A / C / CSC

40.00%
65.92%

32,208
675,531

12,883
445,326

91.6%

A / C / CSC

Shopping Parangaba
CE
Total do Portfolio
(A) Administrao | (C) Comercializao | (CSC) Central de Servios Compartilhados

97.3%

Portfolio Overview

Owned GLA Evolution (sqm - thousand)

444

CAGR05-13:
+29.8%

400

264

277

226
159
55

2005

182

80

2006

2007

2008

2009

2010

2011

2012

2013

Leading Developer
Most active mall developer in Brazil

Total GLA Developed in the last 8 years

Average Age of Malls (GLA Weighted)

413.8
17.9

43.9% of GLA is
1.5x

1.5x

276.3

275.0

2.5x

1.9x

less than 5y old

16.0
15.3

10.6
217.9
8.3
165.1

BR Malls

Multiplan

Iguatemi

Sonae Sierra(1)

BR Malls

Multiplan

Iguatemi

Sonae Sierra

14 shopping centers developed in less than 8 years

(1)

Since IPO (2011)

Growth Drivers
Owned GLA growth of 7.8% by year-end 2015

Owned GLA growth (sqm)

Capital Expenditure until 2016

15,538
445,326

480,243

19,380

CAPEX to Complete

2014E

2015E

2016E

TOTAL

(Amounts in millions of Reais)

7.8%

Expansions

113.8

85.5

0.0

199.2

Greenfields

22.9

0.0

0.0

22.9

Key money / Land swap

-24.1

-27.8

-7.0

-58.8

Total

112.6

57.7

-7.0

163.3

Expenses for the conclusion of recently opened projects. This value includes R$6.5 million
referring to Parangaba's Obligations for Future Assets.

Actual

2014E

2015E

Monetization of excess land

End of 2015

Expansions

Expansions

34.9 thousand sqm of owned GLA with expected opening until the end of 2015

Future Expansions

Opening

GLA (sq.m.)

% Aliansce

Owned GLA (sqm)

1Q14-2Q15

2,805

100.0%

2,805

Shopping Naes Bauru

3Q14

7,375

100.0%

7,375

Carioca Shopping

4Q14

9,200

100.0%

9,200

Caxias Shopping

1Q15

7,672

89.0%

6,828

Shopping West Plaza

2Q15

3,175

25.0%

794

Iguatemi Salvador

2Q15

8,500

70.7%

6,009

Caxias Shopping II

2Q15

2,143

89.0%

1,907

Bangu Shopping

Total

40,870

34,918

7 expansions in malls with an average occupancy rate of 98.6%

Focus on New Generation Assets

Approximately 44.0% of owned GLA has less than 5 years of operating history and has not stabilized

Cap Rate(1)

Case Study: Upside Potential of Younger Assets

Shopping
Centers
Bangu

% Aliansce
Initial
70.0%

Opening
Oct-07

GLA (sqm)
43,975

NOI (R$ mm)(2)

Owned GLA
(sqm)

88.9%

16.5%
14.5%

85.4%

30,783

90.0%
71.4

61.9

11.7%
Santana

50.0%

Oct-07

21,962

10,981

Caxias

40.0%

Nov-08

25,601

10,241

Braslia

50.0%

Jun-09

16,925

8,462

Boulevard Belm

75.0%

Nov-09

34,117

25,588

44.3

1st Year

2nd Year

3rd Year

1st Year

2nd Year

NOI (R$ mm)

3rd Year
NOI Margin

Current IRR: 19.1%

(1)
(2)

Sum of the operating results of each year of the five shopping centers, divided by the sum of investments. Does not include expansions.
Sum of the operating results of the five shopping centers

Excess Land
Portfolio has 808 thousand sqm of GLA to be monetized or for expansions

Available construction potential for mix-use projects and future expansions in 14 of the 19 assets of the portfolio

Main objective for mix-use projects is to monetize the construction potential, i.e. air rights

Four Mix-use projects developed in 4 years

Carioca Shopping Office Tower and Faade

Caxias Shopping Office Tower and Hotel

Operating Highlights: Internal Growth

Occupancy Cost

Occupancy Rate with Openings

13.4%

Blvd.
Belo Horizonte

Blvd. Braslia

Parque Belm
Blvd. Vila Velha
Blvd. Bauru

Blvd. Belm

10.9%

10.2%

10.4%

10.7%
8.7%

9.3%

9.2%

8.9%

98.1%

97.3%

98.0%

97.2% 97.1%

98.0%

8.7%

98.2%

95.7%

4Q13

3Q13

1Q12

1Q11

1Q10

4Q09

3Q09

4Q13

1Q13

4Q12

1Q12

4Q11

1Q11

4Q10

1Q10

4Q09

1Q09

1Q13

Pq. Shop. Macei

Shop. Parangaba

Blvd.
Campos

Same Store Sales Growth (%)

14.9%

16.4%

14.9%
12.9%
10.2%

11.1%

12.4%
11.1%

10.1%

10.4%

11.9%

10.7%

8,6%

10,1%

10.0%

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11
3Q11
Aliansce

4Q11
1Q12
BR Malls

2Q12
3Q12
Multiplan

4Q12
1Q13
Iguatemi

2Q13

3Q13

9.3%
8.1%
8.0%
7.7%

4Q13

10

Operating Highlights: Internal Growth

High Potential for significant Lease Spreads

Leading ratio of SSS over SSR in the sector for at least 10 quarters

Half of the portfolio will complete first 5th year renewal in the next five years

Strong sales growth will generate higher Leasing Spreads

SSS spread over SSR growth (p.p.)

4 p.p.
2 p.p.
0 p.p.

-0.3p.p.

1.6p.p.

0.7p.p.

1.2p.p.

1.8p.p.

1.8p.p.
-1.2p.p.

-0.8p.p.
-1.2p.p. -2.2p.p.

-1.5p.p.

-1.3p.p.

-2 p.p.

-4 p.p.
-6 p.p.
-8 p.p.
-10 p.p.
1Q11

2Q11

3Q11

4Q11

1Q12

Aliansce

2Q12
BR Malls

3Q12

4Q12

Multiplan

1Q13

2Q13

3Q13

4Q13

Iguatemi

11

Operating Highlights: Internal Growth

High Potential for significant Lease Spreads

Highest SSS of the sector in Brazil for the last 13 quarters

At least one mall will complete five years of operating history in each of the next six years

Occupancy cost of 8.7% in 4Q13

Percentage of Minimum Rent Revenues being renewed per year:

SSS Average for the
past 2 years (1)

2014

2015

2016

2017

2018

Bangu

13.1%

9.1%

12.6%

3.6%

48.0%

15.3%

Blvd. Belm

13.1%

19.2%

36.1%

7.7%

9.4%

7.5%

Belo Horizonte

17.2%

5.9%

43.9%

9.0%

2.4%

9.2%

Braslia

10.3%

19.7%

12.4%

17.1%

7.2%

6.0%

Campos

24.2%

14.8%

0.9%

29.7%

3.2%

19.3%

Carioca

7.6%

15.4%

11.4%

32.6%

19.9%

16.3%

Caxias

13.9%

16.3%

5.0%

4.5%

5.5%

65.0%

Grande Rio

10.6%

13.5%

14.7%

20.6%

14.8%

28.1%
17.9%

Iguatemi Salvador
Parque Belm
Santana
Taboo

7.1%

13.2%

15.8%

21.6%

20.3%

26.7%

2.5%

0.0%

0.0%

54.9%

7.0%

8.2%

10.0%

6.1%

5.7%

58.5%

14.5%

9.6%

6.6%

8.3%

9.3%

29.0%

28.0%

Via Parque

13.6%

10.7%

8.8%

28.3%

10.5%

21.8%

Bauru

30.7%

7.8%

3.1%

0.7%

44.4%

17.4%

Vila Velha

10.7%

7.1%

1.4%

3.1%

35.6%

10.5%

West Plaza

N/A

18.8%

20.9%

13.0%

12.5%

18.5%

Macei
Parangaba
TOTAL

N/A
N/A

2.3%
7.0%
11.8%

0.1%
0.5%
14.1%

0.4%
0.0%
13.8%

0.0%
0.0%
20.5%

49.9%
47.0%
21.8%

(1)

Except:

P arque B elm - Since o pening in 2Q12

B auru and Vila Velha - Since o pening in 4Q12

HIGHLIGHT =

First 5th year renew als

12

Fortress Malls positioned with the Emerging Middle Class

Aliansce has seven fortress malls positioned with the Emerging Middle Class: (Shopping Taboo, Shopping Grande
Rio, Carioca Shopping, Bangu Shopping, Caxias Shopping, Parque Shopping Belm and Shopping Parangaba)

These malls in terms of Aliansces Gross Revenues and Owned GLA represented 33.3% and 38.6%, respectively, in
2013

Operating Highlights
3Q13
Main Indicators

4Q13

Aliansce

Middle Income

Aliansce

Middle Income

Same Store Sales

10.1%

10.7%

0.6 p.p

9.3%

10.4%

1.2 p.p

Same Store Rent

11.3%

13.2%

1.9 p.p

10.6%

9.9%

-0.7 p.p

Occupancy Rate

97.3%

99.1%

1.8 p.p

97.2%

98.1%

0.9 p.p

Occupancy Cost

9.7%

8.8%

-1.0 p.p

8.7%

7.7%

-1.0 p.p

Late Payments

1.9%

1.8%

-0.2 p.p

1.7%

2.8%

1.1 p.p

Parque Shopping Belm

Shopping Grande Rio

13

Financial Highlights

Gross Revenue Breakdown (%) 4Q13

Net Revenue (R$ million)

CAGR10-13:
+29.5%

Growth:
+23.6%

Services
rendered
7.8%

451

Transfer Fee
0.5%

357

Parking
15.2%

272

Rent
73.0%

Key Money
3.6%

208

106

2010

Minimum rent
78.9%

2011

2012

2013

4Q12

Stands /
Kiosks
9.3%

130

Percentage
rent
11.8%

4Q13

Gross Revenue 4Q13:

R$143.0 million

14

Financial Highlights

Adjusted EBITDA(1) (R$ million) and EBITDA Margin(1) (%)

NOI (R$ million)

CAGR10-13:
+32.5%

Growth:
+21.4%

67%

389

71%

72%

73%

Growth:
+27.0%

253

229

71%

325

CAGR10-13:
+32.7%

307

190

167

138
93

2010

70%

2011

2012

2013

4Q12

113

4Q13

Adjusted FFO (2) (R$ million)

CAGR10-13:
+19.4%

156

75

2010

2011

2012

2013

4Q12

96

4Q13

Capital Expenditure (R$ million)

212

1.148

Growth:
+54.3%

148

125

602
55

372
215

36

195
91

2010
(1)
(2)

2011

2012

Excludes non-recurring expenses

Excludes non-recurring items and non-cash items

2013

4Q12

4Q13

2010

2011

2012

2013

4Q12

4Q13

15

Capital Structure
Net Debt (R$ million)(1)

Last 10 years - Low volatility of TR

Net Debt(1): R$1,738 million

Adjusted Net Debt to Ebitda Ratio(2): 4.1

TR

% 25
1.934

1.738

196

1.738

157

1.582

IGP-DI

CDI

15
5
-5

196
Short-term Debt Long-term Debt

Total Debt

Cash

Net Debt

Breakdown Debt Indexes (%)

2005

2007

2009

2011

2013

Net Debt Pro

Forma

Principal Amortization Schedule (R$ million)

IPCA
7.8%

TR
68.0%

IGP-DI
5.0%

Fixed
4.4%

1Q14 Events

2003

TJLP
14.8%

168.7

2014

151.9

241.6

256.9

130.5

90.0

2015

2016

2017

2018

Average
2018-2027

(1)As

of December 2013
proceeds from the sale of BH Commercial Tower and excluding Capex and NOI of malls opened during 4Q13
(3) IR$179 million proceeds from BH Tower, and R$22 million Capex in acquisition of 10% stake in Boulevard Bauru
(4)Yearly Average
(2) Including

16

Shareholder Structure and Stock Performance

Shareholder Structure

Management
2.8%

Renato Rique
21.7%

Free Float
47.9%

CCPIB
27.6%

Market Cap(2): R$2.9 bn

ADTV60(2): R$6.7 mn

Source: CVM and Bloomberg

(1)
(2)

Renato Feitosa Rique or legal entities controlled by him, directly or indirectly

Considering closing on March 28, 2014. Share price: R$ 17.94

17

Appendix

18

Sector Outlook

Supply of shopping mall GLA in other countries far

exceeds Brazils (GLA / population in thousands)

Avg. household income growth by income segment (2005-2009)

2.218

73.8%

1.355
32.0%

19.3%

235
US

Canada

151

France

58

Mexico

Brazil

8.5%

4.1%

n.a.(1)
High + High Mid

Middle

Avg. Income growth 05-09

Brazil shopping mall sales and GLA evolution

10
7.5

8.3

8.6

9.1

11,4

15.8%

16.0%

9.3%10.0%

9.5

6.5

4.8%
2005 2006 2007 2008 2009 2010 2011 2012 2013
Mall Sales (R$ million)

18.6%
17.0%

11.4%
9.9%

6.2%

10.7%
8.1%

10.9%

9.7% 9.1%

9.2%

GLA (sqm million)

Avg. Disposable Income growth 05-09

Sales Growth Evolution

12.9

10.3

Low Mid + Low

5.9%

6.9%

8.4%
4.3%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Retail

Shopping Centers

Sources: ABRASCE, ICSC, BNDES, IBGE, Collins International, FGV and Cetelem Research Ipsos 2008 ; (1) Not meaningful because disposable income growth was negative in 2005

19

Company Highlights
Aliansce has the key strengths to replicate its operational excellence in the upcoming years

Most active Developer in Brazil

Leading Developer

New Generation
Assets

Outstanding Growth

Diversified Portfolio

Efficient and Solid

Capital Structure

14 shopping malls developed since 2006

Significant portion of GLA with assets with less than 5 years of operating history
Potential value creation: lease step-ups lead to faster growth of SSR

Net Revenues 4Q11-4Q13: 75%

Adj. EBITDA 4Q11-4Q13: 71%

Exposure to North and Northeast region, the fastest growing regions in Brazil
Exposure to all income segments

Efficient use of balance sheet

Debt aligned with the companys cash flow with average maturity of 7 years

20

Balanced Portfolio with Exposure to All Income Segments

Nationwide platform with important presence in the North and Northeast regions and within different
income segments

Exposure to Fast Growing Regions

Owned GLA per Region
North Mid-West
2%
10%

Exposure to All Income Segments

Portfolio Exposure to Consumers*

Revenues per Region

North
16%

(Total GLA in sqm)

633,927

Mid-West
2%
402,311

389,376

Northeast
18%
Northeast
20%
Southeast
70%

Southeast
62%
High Income

High-Mid Income

Middle Income

* Some malls have exposure to more than one income segment

Exposure to North and Northeast Regions

High growth regions with GDP growth 17%(1) higher than the Brazilian
average, with increasing importance in the countrys economy

(Total: R$1,275 billion)

28% of owned GLA in the North and Northeast regions

Exposure to Southeast Region

(1)

Brazils Disposable Income by Social Class

Relevant presence in the Southeast, responsible for 55% of the

Brazilian GDP

Important major sports events in the upcoming years (World Cup

2014 and Olympic Games 2016)

From 2008 to 2010

16%

24%

31%

20%

8%

Social Classes

21

Disclaimer

This presentation may contain forward-looking statements that are subject to risks and uncertainties,
because they are not statements of historical facts, but reflect the beliefs and expectations of our
management as well as available information.
Our statements are based largely on current expectations and projections about future events and financial
tendencies that affect or may affect our business, and which may or may not materialize. Many factors
could adversely affect our results as contained in our forward-looking statements.
The forward-looking statements include information regarding results and projections, strategies, financing
plans, competitive position, industry environment, potential growth opportunities and the effects of
competition. Such estimates and projections refer only to the date they were made, and we assume no
obligation to publicly update or revise any of these estimates in the light of new information, future events
or other factors, subject to the applicable regulations.

22

Investor relations
Renato Rique - President
Henrique Cordeiro Guerra - Executive Director
Renato Botelho - CFO
Eduardo Prado - IR Superintendent
Pedro Arieira - IR Analyst
Yan Oliveira - IR Analyst

Phone.: +55 (21) 2176-7272

E-mail: ri@aliansce.com.br
Website: www.aliansce.com.br/ri
V. 03-31-14