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Disclaimer
► The material that follows is a presentation of general background information about Sonae Sierra Brasil S.A. and its subsidiaries
(the “Company”) as of the date of the presentation. It is information in summary form and does not purport to be complete. It is not
intended to be relied upon as advice to potential investors and does not form the basis for an informed investment decision. This
presentation is strictly confidential and may not be disclosed to any other person. No representation or warranty, express or
implied, is made concerning, and no reliance should be placed on, the accuracy, fairness or completeness of the information
presented herein.
► This presentation may contain statements that are forward-looking within the meaning of Section 27A of the U.S. Securities Act of
1933, as amended (the “Securities Act”) and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking
statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-
looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations
and business environments of the Company and its subsidiaries that may cause the actual results of the Company to be materially
different from any future results expressed or implied in such forward-looking statements. No person has any responsibility to
update any such information.
► This presentation does not constitute an offer, or invitation, or solicitation or an offer, to subscribe for or purchase any securities.
Neither this presentation nor anything contained herein shall form the basis of any contract or commitment.
3
One of the leading developers, owners and operators of top quality and regionally dominant shopping centers in Brazil
Sonae Sierra Brasil at a glance
► Fully integrated business model with proven local track record– Property management– Development and re-development– Leasing
► 62.4% of our owned GLA developed by us► Adjusted EBITDA Growth (09-10): 42.1%► Adjusted FFO Growth (09-10): 60.2%
► Largest secured growth in the sector: 3 greenfields, 1 expansion recently concluded and 2 expansions at advanced stage, almost doubling our owned GLA
► 3 other expansions already defined
► 10 shopping centers owned and managed► Occupancy rate of 97.6%
Note: (1) As of March 31, 2011(2) Referres to shopping center’s GLA only.
.
► Leverage on the expertise, tenant relationships and market recognition of our shareholders: Sonae Sierra SGPS and Developers Diversified Realty (NYSE: DDR)
► Best-in-class controlling shareholders with significant experience in the sector and significant capital at risk
BusinessModel
Outstanding Growth Track Record
Secured Growth
Operating Expertise
Strong Sponsorship
Expansion / Greenfield
Announced GLA growth (2010 – 2013)(1)
(‘000 sq. m)(2)
+26.9%71
+65.0%136
+24.0%144
+43.1%160
+92.1%188
Owned GLA Growth (%)
111
44
Ownership Structure
Post-IPO Ownership Breakdown
Sierra Brazil 1 BV66.65%
Enplanta Shopping
2.93%
Free Float30.42%
Sonae Sierra SGPS50%
DDR50%
Controlling Shareholders
► Over 21 years of history
► One of the largest developers and operators of shopping centers in Europe
► Over 2.0 mm sq m in total GLA
► 50/50 joint-venture between Sonae and Grosvenor
► Over 45 years of history
► One of the largest developers and operators of shopping centers in the world
► 12.4 mm sq m in total GLA
► NYSE listed, SOx Compliant
► Equity value of US$3.5 billion(1)
Sierra Brazil 1 BV
Note: (1) as of June 16, 2011
Sonae Sierra Brasil benefits from best-in-class corporate governance and globally recognized sector expertise, arising from a solid and engaged controlling shareholders
5
Investment thesis
Competitive edges
► Attractive industry fundamentals
► Strategy focused on dominant malls in underserved medium and large cities targeting to the fast growing middle class
► Leverage on the know-how, strengths and long term commitment of our sponsors
► Sound track record of developments and turnaround cases
► Experienced and committed management team
6
26.1 28.8 31.7 35.941.6 45.5 50.0
58.064.6
71.1
87.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E
Attractive shopping center industry fundamentalsDespite the strong growth observed in the last years, decreasing vacancy rates and low penetration vis-à-vis developed markets, indicate significant room for new shopping centers in Brazil
Shopping centers industry sales
Retail sales in shopping centers
(R$ bn)
Nominal retail sales growth
Source: IBGE.Source: ABRASCE.
Low shopping center market penetration
Source: ABRASCE and IBGE.
Total GLA (m²) / 1,000 inhabitants (2010)
66%
51% 50%
28%
18%
Canada USA Mexico France Brazil
(% 2010)
(1)
Note: (1) 2010 data.Source: ABRASCE.
4%
9%11%
19%
8%
5%
14%
10%12% 13%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E
2,180
USA Canada
1,290
SP
91
PR
53
MG
31
GO
34
AM
42
DF
143
Other BR states
34
Average: 49
Mexico
81
7
Fast growing middle class
Around 30 million people have moved upwards into the middle class, while middle class disposable income has increased by 67%
Middle class: disposable income(1) (R$/month)
Note: (1) Income available for spending and savingSource: Cetelem “O Observador 2009”, IBGE and Itau Securities
122
204
2005 2009
+67%
Approximately R$ 10 billion increase in monthly disposable income
Total credit to individuals outstanding (R$ bn)
Source: Cetelem “O Observador 2010”
Increasing middle class
51% 35%
34%49%
16%15%
2005 2009
Population: 182 mm Population: 190 mm
+4 mm people
+30 mm people
-26 mm people
A+B
C
D+E
Upp
er c
lass
Mid
dle
clas
sLo
wer
cla
ss
Sonae Sierra Brazil is strategically positioned to capture the middle class consumption growth, as it entails over 80% of its target audience
6.8x
-
200
400
600
Jan-01 May-02 Sep-03 Jan-05 May-06 Sep-07 Jan-09 May-10
8
Opening of Boavista Shopping
Acquisition of additional stakes in
Metrópole, Plaza Sul and Tivoli
Opening of PDP Shopping
Sound track record
Sonae Sierra Brasil’s historical evolution | Owned GLA (‘000 sq m)
CAGR(01-10): 26.2%
DDR becomes a shareholder with
50% stake
2001 2002 2003 2004 2005 2006 2007 2008 2009
Acquisition of a 20% stake in Plaza Sul
Opening of Manauara Shopping
25.1
79.9 80.8
102.7
108.5
128.4150.0 148.5
200.0 203.7
2010
Total GLA (‘000 sq m)
111.7 219.0 220.9 242.1 273.8 297.8 298.8 296.8 343.5 350.1
1999…
Owned GLA as % of total GLA
111.7
36.5% 36.6% 42.4% 39.6% 43.1% 50.2% 50.0% 58.2% 58.2%22.5%
Acquisition
Development
Acquisition of additional stake in
Metrópole
Opening of Campo Limpo
9
Controlling interests in most of shopping centersSonae Sierra Brasil average stake is 58% in its 10 operating properties. It will reach 70% when all three greenfield developments are completed
RationalePercentage of the Company’s interestShopping Center Stake Management
Parque D. Pedro(1) 51.0% Penha 73.2% Metrópole 100.0% Tivoli 30.0% Pátio Brasil 10.4% Boavista 100.0% Franca 67.4% Plaza Sul 30.0% Campo Limpo 20.0% Manauara 100.0% Weighted Average 58.2%
Uberlândia 100.0% Londrina 84.5% Goiânia 100.0% Weighted Average 70.3%
Note: (1) Sonae Sierra and DDR hold an additional 25.9% indirect ownership in Parque D. Pedro through another vehicle.
Ability to expand and adapt to market trends
Control the management services of 100% of the malls
Strategic control of the malls
10
Parque D. Pedro: Greenfield case study
(1) Sonae Sierra SGPS and Developers Diversified Realty hold an additional 25.9% indirect owneship in Parque D. Pedro througgh another vehicle
Project Details
Opening October 2002
Sonae Sierra Brasil’s stake(1) 51.0%
GLA (‘000 sqm) 121.0
Occupancy Rate (%) 95.2%
Parking (#) 8,000
Traffic (# of visitors) 20.1 million
Internal View Aerial perspective
Focus on value creation through organic growth
Food Court
11
Strategy focused on dominant malls on underserved medium and large cities Sonae Sierra Brasil has an established footprint in the State of São Paulo and its growth strategy is based on offering high quality, market dominant developments in underserved regions
Core portfolio: 9 properties Development strategy: 1 opened and 3 greenfields
Core Portfolio of Assets
Strong track record in Brazil’s most dynamic region Growth strategy focused on underserved regions
Parque D. Pedro► Campinas (SP)► Population: 1,065k► GLA: 121k sq m► Occupancy rate: 95.2%► Over 20 mm visits in 2010
Total GLA: 343k sq m
Owned GLA: 203k sq m
Greenfield
Manauara Shopping► Manaus (AM)► Population: 1,739k► GLA: 47k sq m► 99.7% leased
# of competitors in area of influence
Parque D. Pedro 2
Boavista 2
Penha 2
Franca 1
Tivoli 1
Metrópole 2
Pátio Brasil 2
Plaza Sul 1
Campo Limpo 2
Total GLA 2013: 513k sq m
Owned GLA 2013: 391k sq m
# of cities with more than 300kinhabitants in Brazil
+ 81
41.6%58.4%
São Paulo Other states
Owned GLA concentration
Shopping centers
Recently opened mall
Shopping centers
Manaus
Goiânia
Uberlândia
Londrina
12
Secured Growth
Owned GLA growth (000 sq m)
Uberlândia
Londrina
Goiânia
+92%
Metrópole (I) PDP (II)
Metrópole (II)
Tívoli
84
204
3923
13
78
2010 2011 2012 2013 Total
Expansion Greenfields
10
Campo Limpo
Sonae Sierra Brasil has a solid pipeline of new developments and expansions underway that will almost double the Company’s GLA within 3 years
13
Greenfield Projects
Uberlândia Shopping
Uberlândia
MG
1Q12
Work in progress
43.6 sqm
100%
86%
Boulevard Londrina Shopping
Londrina
PR
2H2012
Work in progress
47.8 sqm
84.5%
70%
Shopping Passeio das Águas
Goiânia
GO
2013
Approved licences
78.1 sqm
100%
20%
Opening :
Total GLA (‘000 sq m):
Company’s stake:
% of GLA already committed*:
Status:
Sonae Sierra Brasil’s strategy is to develop greenfield projects which have the potential to become the market dominant malls in their regions
City:
State:
* As of March 31, 2011
14
Expansions
Future expansions
TivoliMetrópole(Expansion II)
Parque D. Pedro(Expansion II)
Campo Limpo
Concludedexpansion
Parque D. Pedro(Expansion I)
On-going expansions
Metrópole(Expansion I)
Location São Bernardo(SP)
Sta. Bárbara D’Oeste (SP)Campinas (SP)São Paulo (SP)Campinas (SP) São Bernardo
(SP)
Sonae Sierra Brasil Stake 100% 30%51%20%51% 100%
Additional Total GLA (‘000 sq m) 12.0 7.05.03.05.0 9.0
ExpectedOpening 2013 201320122H2011November 2010 2H2011
ConstructionStart Date 1H20121H2011 1H2012 1H20121H2010 1H2010
% of GLA already committed*:
100% 99% 90% n.a. n.a. n.a.
* As of March 31, 2011
111
1515
Operating Indicators
Occupancy Rate
111
Sales (R$ million)
111
SSS/m²
111
SSR/m²
97.3%
96.3%97.0% 97.2%
98.3% 98.5% 98.4%98.0%
97.7%
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
743.8 840.7
3,041 3,545
1Q10 1Q11 2009 2010
16.6%
13.0%
784
861 824
902
1Q10 1Q11 2009 2010
9.8% 9.5%
45.9
51.0
45
49
1Q10 1Q11 2009 2010
11.1%
8.0%
Financial and operating performance
16
Gross Revenue (R$ '000) 1Q11 1Q10 % 2010 2009 %
Rent 41,342 34,912 18.4% 158,246 132,370 19.5%
Rent contract straight-lining 949 1,401 -32.3% 1,811 5,886 -69.2%
Service revenue 4,033 4,453 -9.4% 15,530 18,390 -15.6%
Parking revenue 5,610 2,774 102.2% 16,629 6,645 150.2%
Key money 2,398 2,722 -11.9% 10,399 9,232 12.6%
Other revenue 325 32 915.6% 808 2,186 -63.0%
Total 54,657 46,294 18.1% 201,612 168,823 19.4%
111
Gross Revenue (R$ million)
111
Gross Revenue Breakdown
46.3 54.7
168.8 201.6
1Q10 1Q11 2009 2010
18.1%
19.4%
75%
3%10%
6%6%0%
1Q10
76%
2% 7%10%
4% 1%
1Q11
RentRent contract straight-liningService revenueParking revenueKey MoneyOther revenue
111
1717
Financial and operating performance (cont.)
Adjusted EBITDA and Margin (R$ million)
111
Net Revenues (R$ million)
111
Adjusted FFO and Margin (R$ million)
111
Net Operating Income - NOI (R$ million)
32.1 38.0
99.5
141.4
1Q10 1Q11 2009 2010
18.3%
42.1%
29.9 34.4
77.8
124.6
1Q10 1Q11 2009 2010
15.2%
60.2%
75.9%76.3%
64.6%76.4%
70.7% 69.2%
50.5%
67.3%
38.8 47.1
128.3
167.4
1Q10 1Q11 2009 2010
30.5%
21.4%
42.3 49.7
154.1 185.0
1Q10 1Q11 2009 2010
20.0%
17.6%
18
Cash Position and Leverage
Fixed 59%
CDI22%
TR19%
Net Cash Position (R$ million) Debt Profile
Debt Amortization Schedule (R$ million)
7.7 9.9 28.0 28.0 27.3
111.4
2011 2012 2013 2014 2015 2016 and beyond
Information as of March 31, 2011
90
95
100
105
110
115
120
125
130
135
2-Feb 14-Feb 24-Feb 10-Mar 22-Mar 1-Apr 13-Apr 27-Apr 9-May 19-May 31-May 10-Jun
Stoc
k Pe
rform
ance
Ibovespa SSBR3
1919
Stock Performance
Stock Performance Since IPO versus Ibovespa
Performance – Feb 02 to June 10, 2011
SSBR3: + 27.2%Ibovespa: - 6.0%
Since the IPO in February 2011, Sonae Sierra Brasil’s shares have had a solid performance when compared to the Ibovespa
Thank You
Questions & answers
Investors Relations Carlos Alberto CorreaInvestors Relations Officer
Murilo HyaiInvestors Relations Manager
Email:ribrasil@sonaesierra.com
Phone: +55 (11) 3371-4188
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