JHSF highlights in 2012

JHSF highlights in 2012
2
•
2012 earnings: gross margin of 49% of net revenue; adjusted EBITDA margin of 34%;
net income of R$ 184 million; R$ 590 million in cash balance and net debt of 2.4 times
annualized 4Q12 EBITDA
•
NAV of R$ 6.3 billion, or R$ 14,54/share, much higher than current share price; JHSF3
appreciated 57% in 2012 and share liquidity increased significantly
•
Big investments in construction works

Income properties: Bela Vista, Tucuruvi, Ponta Negra and Catarina Fashion Outlet malls, and
Cidade Jardim mall expansion

Real estate developments: Praça Vila Nova, Benedito Lapin and Vitra
•
Bela Vista mall opening in July 2012
•
Acquisition of a building in NY
•
Launches of approximately R$ 500 million (PSV) and sale of units in inventory amounted
R$ 555 million
•
Delivery of the Praça Vila Nova residential building, located in São Paulo, in 4Q12
•
Revenue from Fasano hotels and retail brands grew 12% and 37% respectivelly, vs.
2011
•
We are closely monitoring all variables that can impact the schedule and the cost of
ongoing construction works, without jeopardizing the outstanding quality our clients
expect towards our final products
JHSF highlights in 2012
Adjusted Gross Revenue1
R$mn
961.3
Gross Profit
R$mn
961.2
436.3
391.7
258.6
244.7
4Q11
4Q12
2011
2012
112.5
122.5
4Q11
4Q12
68.1
80,1
4Q11
4Q12
2011
24.3
287.0
(-)
Adjusted
Manaus
2011
disposal
2012
Adjusted Net Profit2
R$mn
Adjusted EBITDA2
R$mn
311.3
2011
305.6
2012
220.8
50.2
46,7
4Q11
4Q12
2011
24.3
196.5
(-)
Adjusted
Manaus
2011
disposal
184.2
2012
(1) Adjusted Gross Revenue includes: (i) rent from our retail stores; (ii) rent from our headquarters (jan-aug/11) and (iii) results from FII CSHG JHSF Prime Offices (total of R$ 5.8 million in
2011 and R$ 12.3 million in 2012)
(2) Non-recurring event of the disposal of the residential part of real estate project Parque Ponta Negra in Manaus, to the company Direcional in the 2Q11
3
Highlights of the recurring income business
Adjusted Gross Revenue1
R$mn
Adjusted EBITDA2
R$mn
62.6
97.7
42.5
63.6
21.4
36.2
9.7
15.5
4Q11
4Q12
2011
2012
4Q11
4Q12
2011
2012
Adjusted Net Income2
R$mn
Adjusted NOI2
R$mn
38.0
63.1
45.1
21.3
15.6
23.0
10.4
4Q11
3.2
4Q12
2011
2012
4Q11
4Q12
2011
2012
(1) Adjusted Gross Revenue includes: (i) rent from our retail stores; (ii) rent from our headquarters (jan-aug/11) and (iii) results from FII CSHG JHSF Prime Offices (total of R$ 5.8 million in
2011 and R$ 12.3 million in 2012)
(2) Adjustments on Gross Revenue as noted above, and allocations of revenues and expenses at the holding company for purposes of analysis of the recurring income division (R$ 26.2 million
in 2011 and R$ 17.3 million in 2012)
4
Guidance to the recurring income business
1. Revenue growth in the recurring income business
2. Recurring income will be the most relevant business of JHSF in year 2015
5
Highlights of the recurring income business
• Cidade Jardim’s total sales grew 18.5% in
4Q12 vs. 4Q11 and 15.2% in 2012 vs. 2011
• Opening of important exclusive stores, such as
the first Louis Vuitton global store in Latam,
Cartier and Valentino
• Opening of the Bela Vista mall, located in
Salvador, in July 2012
•
Cidade Jardim mall
Acquisition of a building in NY
• Tucuruvi mall is ready, only waiting for the final
legal permits to open
Bela Vista mall
• The Metropolitan and Platinum real estate fund
continues performing very well in terms of
occupation and rent price
• Management service at the Pátio Higienópolis
mall
6
Metrô Tucuruvi mall
Next income properties in pipeline
Ponta Negra mall
(Manaus - AM)
GLA: 46,479 sq.m – 80% JHSF
NOI: R$61mn
1H13
(i)
Cidade Jardim Shops
(São Paulo - SP)
Catarina Fashion Outlet mall
(Parque Catarina - SP)
GLA: 24,604 sq.m – 100% JHSF
NOI: R$22mn
1H13
GLA: 5,245 sq.m – 100% JHSF
NOI: R$12mn
2H14
Cidade Jardim expansion - Reservas I and II
(ii) Commercial lease in the education sector, in São Paulo
(iii) Building in NY
7
Catarina executive airport
• Private airport exclusive
executive aviation
for
• Development in phases
• Strategy: adequate solution for the
ultra high net worth client, aiming
on meeting all requirements to
have international flights
Illustrative Image
• Received the innitial approvals from the airports oversight authorities,
and waiting the environmental licence to begin earthworks
• Financing structure: own capital plus investors, plus infrastructure
dedicated loans
• The potential recurring income from this project is not contemplated in
our guidance
8
Highlights of the development business
• Sales grew 24% in 2012 vs. 2011 and
Inventory at market price reached R$
687.5mn at year end
• Gross margin of 54.9% in 4Q12 and 48.4% in
2012
• Future operating cash flow of R$ 1.96 bn
• Launches of R$ 496mn PSV in 2012 (+7% vs.
2011)
• Recognition prize as the best real estate
developer of the year, from PINE/Núcleo de
Real Estate of Poli/USP
• Elected the best Brazilian company of the real
estate sector, in the 2012 edition of the
Annuary Época Negócios 360º
9
Residência Cidade Jardim
Launched developments and landbank
Projects at December 2012 end
(R$ million)
Parque Cidade Jardim
Cidade Jardim Corporate Center
Fazenda Boa Vista
Horto Bela Vista
Praça Vila Nova
Benedito Lapin
Vitra
Las Piedras Villas & Hotel Fasano
Parque Catarina
Parque Ponta Negra (Flat)
Bosque Cidade Jardim
Residência Cidade Jardim
Mena Barreto
Development Projects Total
10
Launches
919
851
1,388
634
248
78
120
104
190
204
55
4,792
Land Bank
1,483
945
344
7,520
37
300
10,629
Total
919
851
2,871
1,579
248
78
120
449
7,710
37
300
204
55
15,421
Highlights of the Fasano and retail businesses
Fasano hotel in São Paulo
Fasano hotel in Rio de Janeiro
Hotels
• 12% growth in 2012 vs. 2011
• 2 new Fasano hotels (construction works and ownership are thirdparties’)
Retail
• 37% increase in the Company’s revenue with this business
• Total of 5 luxury brands managed by JHSF in Brazil; Valentino and Red Valentino
joined our portfolio through a JV
11
Account receivables from properties
• Account receivables of approximately R$ 1 billion, concentrated
primarily in years 2013 and 2014
Real Estate Developments Account Receivables
(R$' millions)
12
12/31/2012
Account Receivables recorded (on balance)
654.3
Account Receivables to be recorded (off-balance, backlog)
349.0
Cash advances from clients (on balance)
(31.8)
Total Account Receivables (on and off balance)
971.5
Indebtedness
(*) Considers the Adjusted EBITDA of the last quarter multiplied by 4
13
Net Asset Value (NAV)
Real Estate Development
Dec/12
Receivables at present value - launched projects
Advances - launched projects
Inventory at market value - launched projects
Construction costs, expenses and taxes to incur - launched projects
1
Inventory of areas with infrastructure ready
Land (landbank) at book value 1
Obligation of land (landbank) purchased
1,003
(32)
687
3
(437)
761
297
(7)
2,273
Malls, offices, hotels and expansions 2
5,058
Shoppings, escritórios e hotéis e suas expansões
5,058
Total Development + Malls + Offices + Hotels
7,331
(-) Net Debt 4
(1,069)
Consolidated NAV Amount
NAV R$/share
6,262
14.54
(1) Includes landbank for the recurring income projects and air rights.The table bellow breaks down the PSV and the area size of
each project in the landbank
(2) It does not consider the potential increase of recurring income of the new airport in São Paulo
(3) Beginning in 3Q12, we are including expenses and taxes in this line
(4) Net Debt does not include the positive adjustment of performed accounts receivable of R$ 299.9 million that would lead the
adjusted net debt to R$769.0 million
14
IR Contacts
Eduardo S. Camara – VP and IR Officer
Marc Grossmann - Manager
Juliana Freitas - Analyst
Phone: 55 (11) 3702-JHSF
E-mail: [email protected]
www.jhsf.com.br/ir
Residência Cidade Jardim – illustrative image
15
Annexes
16
Nossas prioridades e estratégia
1. Implement our strategy of growth in the recurring income
business
2. Mantain the same level of activity in Real Estate Development
3. Operational and Financial discipline in line with our operational
and business model
4. Mantain the conservative capital structure
Recurring Income
2013: R$230mn
2015: R$430mn
17
17
Launchings
Real Estate
R$1 billion / year
In a long term
average
Cash balance: R$ 587mn
Account receivables:
R$1.0 billion
(present value)
Developments
Launches totalling R$4.8 billion since 2007
Parque Cidade Jardim
Praça Vila Nova
18
Fazenda Boa Vista
Vitra
Horto Bela Vista
Residência Cidade Jardim
Strong GLA growth in the recurring income business
Square meters
300000
250000
200000
150000
100000
50000
0
Cidade
Jardim
mall
Bela Vista
mall
2012
19
Metro
Tucuruvi
mall
Cidade
Ponta
Jardim Negra mall
Corporate
Catarina
Fashion
Outlet
Cidade
Jardim
Shops
Cidade
Jardim
expansion
Cidade
Tucuruvi
Ponta
Bela Vista
Jardim
expansion
Negra
expansion
mall
expansion
expansion
2015