Multiplan Empreendimentos Imobiliários S.A. ($MULT3)

All right. Good morning, everyone. It's a pleasure to have you here in another public meeting of Multiplan. Thank you for our investors, analysts, collaborators, journalists that take part here and are watching remotely. This is a moment that we can share results, long-term view and a few successful cases. Multiplan lives a cycle that is very consistent of growth. Numbers of last years really show that. This performance is not luck. It's the result of a well-defined plan, well executed with discipline and education. The company goes through a transformation. We invest robustly in expansions, revamping, innovation and the return to the shareholder. BRL 7.5 billion allocated in 5 years, always focusing in value generation. At the same time, we are obsessed by operational efficiency. Last year, we saw our expenses dropping and the results increasing. So we have record margins, higher capacity for cash generation. And we're not going to stop. Throughout our history, we've developed over 50 expansions, 22 since the IPO. Just in 2024, between 2024 and '26, we are talking about 50,000 square meters of GLA. Morumbi is an example of that. We launched last year the 6 expansion. When it was born in '82, it was just square 22,000 GLA. Today 61,000 GLA and the 546 stores. This same context is for the entirety of the portfolio. we revamped basically all the shopping malls with clear impacts and flow, sales and occupancy. We continue with a solid pipeline for 2026. In the next month, we're going to deliver the expansion of Belo Horizonte and BarraShopping. November 18, BarraShopping Brasilia will launch the expansion. 2027, we have the prediction of launching another 3 expansions, Jundiaí, [ BarraShopping ] and Sao Caetano. Throughout this morning, we will detail this trajectory and show you how we still identify opportunities of growth with discipline and return.

Thank you very much. Welcome to our meeting. Good morning, everyone. It's a pleasure to be here with all of you on site or over the Internet. Welcome once again to MorumbiShopping. We try to find all the words, complete, consolidated high performance, all of these, I really like the word innovative. I see this word innovative that MorumbiShopping but also the strategy of multiply and innovation at everything, innovation and mix, innovation and the way that we generate, the enterprises, innovation in the events that we bring and that will -- are going to go over, so we can show you. Let's see how it all started in 1982. Berrini was just opened a new -- we saw the new vector of growth of the city of Sao Paulo in the Southern region of Sao Paulo. As Eduardo said, 202 stores, 32,000 square meters of GLA. They turn at 261,000 with almost 2.5x the number of stores. Showing that the big spaces were decreasing, we are making the performance of the shopping mall is actually improving. As I told you, shopping mall innovation was innovative in various fronts. In 1984, we opened the first fashion show, 1997. We did Morumbi Fashion Brazil, which was what came -- well, then it stemmed from Sao Paulo Fashion week. It's who we are managing over Multiplan and Morumbi as a protagonist in this big area. Then we did a gourmet area in a shopping mall, not just innovation, but also we have several restaurants here, and the tradition is so strong to bring to the shopping mall. And today, we have almost 90 operations of restaurants. 31 restaurants. If you don't know it, you have to get to know them. Just so you can see over the last 10 years, the growth of 112% in the volume of sales going over inflation, which was 55% in the same period that we are not showing. Morumbi, we identified with Berrini, with the avenues this vector of growth in the city of Sao Paulo. Morumbi as a catalyst of this growth. It saw that this area, which was basically industrial it became a big center, commercial center, offices and homes that we have now around the shopping mall. As I told you, the population, the Southern zone of Sao Paulo is vector of growth has grown even faster than Sao Paulo. Sao Paulo is a phenomena in growth, and we see the Southern region this vector of growth accelerating ever more than the city of Sao Paulo. Showing that Morumbi is not only a shopping mall of today is a shopping mall tomorrow. It will absorb all the growth of this region, [indiscernible] Avenue, Rake Petronia Avenue, all of that area that grows and there is a lot of oxygen to still grow, bringing several opportunities to shopping mall. Well, as we mentioned, we have 546. It was modernized for shopping mall. We are still innovating. We are growing. This is the spirit after doing the meeting when we were on the works, you see the reality, and you're going over the shopping mall and it's a bit of what we are showing in the MorumbiShopping, but showing the fundamentals of Multiplan. How do we think how Eduardo thinks about a result of planning and a strategy of the company very well elaborated. Here are a few pictures of the revamp, but I'm going to show you in a very dynamic way. The video of MorumbiShopping. [Presentation]

To continue the tour of the MorumbiShopping, I invite Marcelo Martins, our VP of Operations, and they will tell us not only of the expenses, but the strategy behind Multiplan.

Thank you. Well, it's a pleasure to see you once again. It's a pleasure to see the activities of the day-to-day. But beforehand, I -- we see the expansion of MorumbiShopping and share with all of you the confirmation of the success that we see in the expansion. And in the last week of -- we had a growth of MorumbiShopping as a whole of 31% of sales. And taking away the expansion, it grew 40%. It added sales. It added results of the shopping mall. And of course, this revamping that was done, I wanted to share with you the excellent results that confirmed that the strategy was right. So within our activities of the day-to-day and our assets, we have 4 relevant themes starting by the mix -- the management of the mix of our shopping mall. Well, the management of the mix is not exact science. It's not simple, but it's the result of an intense directed work, not only by the experience of the company and their executives but also the observation of several factors. We have an area of intelligence and planning of mix to guide the work of the commercial area. This guidance is the result of a curatorship based on internal/external market data and an observation of the behavior and the desire of our consumers and the trends. So once it's well directed and with a clear focus, we -- this flow is even inverted by the quality of our assets. We are frequently sought out by the brands that wish to be present with us within the brands within our mall. This process evolves through a commercial proposal that is analyzed by the executive of the shopping mall, the superintendent, which is who is on the day-to-day, those that are hearing the consumers and it follows through a committee of the matrix and then they gathered 1 by one, analyzing the proposals and all the aspects and factors of this proposal, financially, even. And to measure this, it's 100 proposals analyzed every 15 days. Once again, and as last year, we have the example of BarraShopping and all the impact that we've had in the area of mix, we have MorumbiShopping, which we had the diagnosis that it could improve that we could have a demand for more restaurants and based on data, once again, we did a work I apologize, we did work and to demonstrate that many times, not as BarraShopping, we did the example of last year, which was a more profound change. But sometimes it's a surgery that also makes a big impact in all the areas. So this area was an area that had an operation in 2021 and restaurants and 1 at the extremities with a vacancy so with all the data, that we understood that would be pertinent to get into these places. We got another restaurant, and we substituted the restaurant that was -- in the other event extremity because there was a restaurant that was not aligned with the profile of the MorumbiShopping. So we wanted to improve that experience. So guided by these operations and the results came as you can see, 2021, we had 24% of the GLA of this corridor destined to restaurant 2025, we doubled that area. And the results of sales is impressive. It grew 180% of sales against 86% of sales of the shopping mall per se, which is a significant growth. So we realize that once again, it's not necessary to have a big change of a lot of operations. A surgical change can promote an impactful result. The next 2 slides, they show this. And in 2021, this is the heat map of the flow of customers in this area. It's well distributed. It's not a cold area. We had some flows, but we believe that it could be better in 2025, that situation after all the changes that we've done. But the good results of this corridor, they are not justified just by the changes that we have in the mix. It's the result of another work is the result of a profound intervention that MorumbiShopping went through, including this corridor, which is the revamping. So 19 -- in 2025, 19 of our 20 malls, they suffered some intervention. So what did we revamp? This is a virtuous cycle. It responds to the changes throughout time because of architectural issues because of a change in behavior and it makes this wheel turn. And we, at Multiplan are always paying attention, making it -- and we always try to anticipate and try to be a step ahead and you can realize that it's one before and after. At one point, this area it proportioned the best experience. It had good sales. NOI occupancy rate strong, what positions the valuation of our assets. But for this to continue to be the truth, we needed to make this wheel, this cogwheel turn and -- which is the second area, which is revamped proportioning a better experience to go on with this journey of better results. In this process, the shopping mall executives they have a contribution with accessibility at the tip of the business that adding to the experience of the company, we go to this process. Any execution of this intervention, trying to promote them with the possible care, so they don't cause any impact in the operations of the day-to-day. The shopping malls go through revamping and the expansions but they are working. Every day, they need to be open in the best way possible. So we have -- so we try to avoid this trauma as best as we can. Well, here, going over a few images of a few assets that went through these transformations, BarraShopping [indiscernible], MorumbiShopping. Once again, Diamond Mall, Pátio Savassi, MorumbiShopping. And these revamping, they -- throughout the goal -- BRL 540 million invested in the last 3 years. Just in MorumbiShopping, BRL 150 million of interventions, profound interventions -- since those areas that the customers come mobility until the areas that the customers don't see, but they feel the air conditioning as the environment, the sound, the smells. And also the -- it's very important for the operational security for the electric for fighting the fires and others. We showed this slide last year, showing the -- how the consumers they approved these changes that we are doing in our enterprises. And now we bring the impact of this in our results of this set of assets that are analyzed by [indiscernible], Diamond and Pátio Savassi one yield of almost 10%. When we look at the real growth of rent against what was invested in these interventions and these reworks besides having more space that is more attractive to the brands of having the growth of sales in an environment that is more modern, to be able to receive our consumers, our clients, improving this for BarraShopping. So improving the journey. We go through the third theme, the events. It's not a new activity. It's present in the DNA of the company. Since the beginning since at the end of the '70s, the '80s, the company has brought to the events, well, new events that are forever remembered. Here are a few examples. Some of them are in your memory. Some yes. And I always like to mention the example where Armando went through this in the presentation, which is the events that were born in our shopping malls but they are so big. They gained so much muscle that they needed to leave and they became big events with visibility and international about the breadth. The week of fashion of Rio de Janeiro, Sao Paulo, and they were born in BarraShopping and MorumbiShopping in the '90s. More so, more than the result of sales and the flow. This is a fundamental we have to strengthen the connection, emotional connection with the communities, with the people, with the families, and it's very gratifying to see the memories that are built by generations of people. And we will continue with the objective of enchanting the next generations. So the choice -- regardless, the choice of these events, they also go through a process of evaluation. They -- with the field frequency, we receive providers, producers, offering events, but not always the quality of the vendor characteristics of the event are aligned with what we expect. Once again, with the participation of the shopping malls, we try to bring the best events, the best experiences. And over the last 5 years, it was almost 5,000 events that we had in our shopping malls. How about 3 new events every day. Just here in MorumbiShopping, hundreds of events. 1,300 events that we've done all throughout the network. Within these thousands of events, the smaller ones, that they demand less time to prepare until the ones that are bigger which is because of the Christmas tree, since the first month of the year, we started to plan and we started to work with. And here is the real dimension of this installation. Few of these events, they extrapolate by the frontiers of this region, and they have a breadth that is incredible. Using the case of BarraShopping, we had 130,000 visitors through data analysis collected. We identified clients of Sao Paulo, [indiscernible], Brasilia. So getting to know the Christmas tree. So I wanted to invite all with to watch a video that combines... [Presentation]

It's impressive when you compile in a few seconds, but 1,300 events in a year, I mean it's a lot of work. And we dedicate ourselves to having the best things happening in our choppy. And this data analysis that I just mentioned, and there is the fourth and last team and about the digital information and how much that is contributing to the management of our shopping malls. Our multi app, which is a central core of our digital strategy, it consolidates as a powerful tool for relationship and management. Well, this is a toolbox at its inception to improve the experience of the clients. Over 1 million -- 10 million downloads accumulated and it transformed in a great machine of data generations Well, with the Q&A session, we've seen that with the earnings results we were questioned about the monetization of Multi. Multi, it's already being monetized. We have a lot of surety that the best monetization of Multi its role as sales lever for the retailers. So all the retailers, whether they are their big size or the local ones, they realize and they use the source as an ally for the management of their businesses, seeking more assertiveness in the relationship with our clients and efficiency in the capital sales. So a functionality that we just launched in April of last year, getting to know your client. And here is an example of that depth. The level of details that we've managed to share with our tenants. So we established correlations of usage between the different retailers. And how much of an individual overview of the tenant, well, we can have a panoramic overview, broad one with the capacity of doing the cross-sell of the data and they help us with the decision-making process. Just so you know the size of the dimension here just on MorumbiShopping, 500,000 registered for our app over 130,000 benefits recurred just last year in our relationship program now within the relationship program, 200,000 active benefits in our program and 60% of the tenants of MorumbiShopping accessing the Get To Know Your Client to use the data and to have the possibility of providing to them this # 4 -- well, many thousands of the tenants that are already accessed this type of information. Here, as we showed back then and going back using the data in the mix management, JundiaíShopping. We had identified the need of improving an area and through this data, the intelligence, planning of mix we managed to align a strategy with the commercial area that is well the direction with a focus to show the specific data that this is more assertive for this region. Well, I'm going to be here, and I would like to thank you for your presence. I would like to congratulate all the collaborators of the shopping malls that are day-to-day, the artists that help us and contribute with the result of the company. Thank you very much. Now I invite my colleague, Vander, VP of Compliance Institutional compliance to continue. [Presentation]

Hello guys. The idea is to go around and see -- well, sometimes you just see the numbers and the reports that we've seen and the people don't know the concern that we have here, the care that we have legitimate and that is in the DNA of the company. But as we mentioned, 50,000 square meters of GLA, as Marcelo Martins mentioned 5,000 events. And all of that is done with a lot of attention with trust and with transparency. Here, I'm going to talk about a value that is nonnegotiable in the company, which are the values and the principles that coordinate all of our structure of governance. Not only by its independence of the Board members, 43% of them. But all the dedication of the area of compliance, the mechanisms of control and the statutory VP of Compliance. Very few companies in Brazil have in this infrastructure of VP have the compliance seat, the chair. So we have to give value to what you believe and you defend. Many times, we hear the talks, but the company shows what it does. It shows its projects and always doing it in a way that creates values and principles because the company thinks about legacy. This company thinks about the long term. So our projects, they really have to follow everything that we do in our day to day. So I'm going to go over another video. Going -- that summarizes many of the programs that we have in ESG and I invite you all to watch it. [Presentation]

With this video, I would like to thank you, continuing investing in the company and still believe because we have a lot of things to do, and we're still going to bring a lot of surprises to you. So let's call our colleague, Marcello Barnes, Director VP of Development of Real Estate of the company.

So let's talk about the development of the company. Over 50 expansions and the story of the company, and '22, so welcome. And over the last 18 months, Diamond Mall, ParkShopping, [ Barra da Tijuca ], Maceió. 2 weeks ago, MorumbiShopping and we're still going to launch [indiscernible], BarraShopping, and ParkShopping Brasilia at the end of the year, November 18, with 9,000 meters of expansion. Here at MorumbiShopping, we did an expansion that is, as Marcelo said, a lot of success of public and sales. This expansion was done here what was the old deck park. It was complex. It was 2.5 years of works, and we have pillars and we have 350 -- we did the reinforcement, so we spent over 3,500 meters of reinforcement, carbon fiber. We spend 500 tons in metal works to reinforce our enterprise. We turned down ramps. We rebuilt these ramps. We remanaged [ Renner ]. Renner couldn't close the doors, and it was in the middle of the way between the expansion and the existing shopping malls, so we did a new Renner. And we transferred it. It was still working and we did all that with a complicated logistics of the shopping mall without losing sales and working fully. So how an expansion works the idea. Basically, our executives, they start to go to the headquarters. Well, we have a demand of the tenant, our corridors have a demand for displays this mall. And from that, we develop studies of architecture, we have viability studies where we define the cost whether if it's rental building, we define the deadlines and that's a market with the material market, and we test the market and we fix this to -- according to our viability, always trying to get a return with above 12% real that is deleveraged. Here, specifically on the mall. The last expansion of 2006, this expansion shows the profitability had a yield in the allocation revenue, 68% nominal in these 20 years and a real yield of 20% through this period. So it shows the profitability of the expansions. Here, we are still going to deliver this year. [indiscernible] another 12,000 square meters BarraShopping 2,000 meters with potentially another 2,000 part shopping Brazilian 9,000. So [indiscernible], we have BRL 30 million CapEx which is first, the -- we have ASICs. We have Nike, Sephora, that is going to be launched in June. [indiscernible], the expansion of a big brand, international brand, 2,000 square meters. We had to do the metal works to make it agile and be able to deliver it, we -- it's going to be launched in the third quarter of '26. ParkShopping Brasilia, launching in November '18 already launched. This is between the deck park. You can see the deck park on the left and the existing on the right, an infrastructure which is metallic. And we still have a pipeline of new expansions, ParkShopping, and we're going to announce and be launched. JundiaíShopping, you can see [indiscernible] 13,000, Jundiaí 8,000. I'm going to show a video that summarizes a bit of the expand. [Presentation]

[indiscernible] And not only our shopping mall, we have a lot of assets within the company. The multiuse, we have 5 towers. We have Morumbi [indiscernible] center, and Morumbi Corporate, and Morumbi shopping. Well, this walkaway has an addition of Morumbi shopping 3 percentage points after its launch. So it justifies all the investment. And why multiuse because it's synergistic for one and the other. And the shopping mall adds more traffic and more quality. We invest in residential areas, commercial, location and for sales. And the biggest multiuse project is Golden Lake, which is 20 hours residential and 200 meters from [indiscernible] 2,500 square meters of private areas, VGV, almost BRL 5 billion. The first stage is delivered last year. It was bigger units of 30 to 40 square meters, 94 units of VGV that is estimated of BRL 600 million. We launched in 2024, the second phase, [indiscernible] 2 towers with a payment 22 stories, and now we have the building. We are at the beginning about smaller units 150 square meters to VGV BRL 350 million. And for this year in June, we're going to do the launch of [indiscernible]. We got 29 stories according to the new director plan, 192 square meters, and a VGV that is estimated of BRL 400 million. I'd like to call to -- I actually... [Presentation] [indiscernible] of living the in the city. Thank you very much. I'm going to call Armando to show how all of this is reflected in the numbers of the company.

So I would like to say wow. Well, even being at the day of day, I am impressed how much Multiplan has been able to build and to be delivering more and more, connecting more and more to the consumer, which is the biggest focus of the company, connecting to the new generations and now looking ahead, looking at the future growth of the company, as we've said with all these events and actions. I am very proud. So let's talk about after all this tour that we've taken virtual at MorumbiShopping. How is that reflected in the results of the company. And I'm not going to repeat the numbers that you've seen. I just want to show you a different ways of seeing a few analysis that we want to share with you. So in the end, everything that we discussed on strategies and a summary, generates growth in revenue, reduction of expenses and generates more revenue, sustainable growth of the company. And this is our work of perpetuity in the company and preparing the company for the next generations whether it's with the consumer or management. Here, this first slide is a slide that we show every year. and obviously removing the sales of Multiplan. But here we have a longer series since 2012. You can see how much we have grown with the numbers of the sector. There is no asset without -- well, we saw the liability of the [indiscernible]. But look what happened afterwards. This is a moment that is incredible for the company to grow more with the good assets having a superior quality to the average of the sector. This is a few of the strategies that we wanted to share with you and how it works within the company. showing art that it's not just simply a calculation. There is also, well, the spreadsheets, but it's art and long-term view. So this graph shows how the performance is different. And looking ahead, I hope that we can have the strategy, the strategy is not short term. It's a strategy of the long term. This is another graph that we wanted to assemble, but we know that it's not perfect. We are not comparing the same things. You have the number, the GDP with the interest rate, nominal growth in sales, but this is to show the performance of the company. In any environment, because as we've shown, we showed a lot of what was done in high interest rates double digits and 2.5 years, we are living with interest rates 14, 15 years in Brazil. And imagine what we can do for a sustainable period with predictability. This shows where we want to bring your attention to is the performance of the sales of the company that reflect in the several revenue streams of the company by several different environments. Here, the books, they show the fundamentals that the monetary cycles, the sales drop, not necessarily. They are compensated these cycles of monetary tightening have an effect on sales, but they are compensated with the strategy and the determination of the company should do our enterprises better every day. Here, we start to have a reflection in the results, expenses. Let me show you a few examples. Expenses or results the square meter that we manage in the company. In nominal terms, the expenses of real estate are dropping. That growth in the GLA also with productivity, Eduardo commented on the efficiency the eternal search for efficiency. This is reflected in the numbers. And we can decrease expenses of our properties reflecting in the results of the company. And the expense in it's growing nominally of headquarters per our own GLA. And it shows that we are growing not just for growth. We're growing with efficiency, generating value. And here the results, the operational cash flow, well, this is what reflects in the results of the strategy of the company. and you see a big growth. And we prepared ourselves to bring to you in real terms, and you see how much the expense drops how much the investments in technology, automation and education, how much that generates at the end of efficiency for our shareholders. In the same way, you have the net revenue multiplied 2.5x in this period in terms in real terms. Here, talking about efficiency, continuing with the issue of efficiency and showing here the expense of headquarters with the net revenue, getting to levels that we've never gotten before. The expense with the record levels -- lower levels comparing to the records, but showing clearly a trajectory. We're going to show this different -- in a different way. And here -- but the margins are for the recovery of recovery of expenses is now recurring. I always talk with it when your expense drops, you don't remove it from the calculation. When it gets in recovers, you shouldn't also remove it. But let's see it. Let's forget about the pinpoint result. Let's see a trend. What you're going to see readjustments, margins, records. The EBITDA of the properties, we use the EBITDA of the property because we have a growth of the revenue of real estate, of course, with lower margins. So we see the result of income, how much is it that we have. And you see the stability and the efficiency of the company whether if it's in the average of 5 years or the results analyzed in this period. This shows the great moment operational moment. delinquency is negative per consecutive. So it decreases with the occupancy showing the great moment that real estate goes through the properties of Multiplan. Here, another theme, which is BRL 7.5 billion in 5 years. And here, we're going to show you a few comparisons. And once again, provoking the questions that we're going to have. Here, the company, in the last years, allocated much more capital, sorry, to reinforce the BRL 7.5 billion in 5 years, keeping a stability of financial leverage of EBITDA. Sorry, the light is very bright. So I'm going to show you the capacity of the company to return capital to grow to get in practice this vision of the future of what we have of our properties and the growth of the company. And here we see through GLA, and we see different strategies. And let's compare what we've done. We had the biggest capital allocation in 5 years in the sector. And when we see this capital allocation for GLA, we see this difference increase more and more. My own GLA. And the return to the shareholder, you see this gap. We see the capacity of the company not only of growing by participation returning capital to the shareholders we generate value. This last year, we've seen a lot of assets, and we're very proactive. And the generation of the shareholders for the shareholders by minority shares, selling, repurchasing shares, developing projects. And here, with the repurchasing of shares, it generated almost BRL 900 million, regardless of the recent volatility on the Capital Markets, it generated BRL 900 million that do not appear in our results. The financial expenses already appeared. It circulated all the expenses. But having the opportunity of by the shares at '22, '21 generating BRL 900 million to our shareholders. We also did a brief comparison with a big peer of the sector, a big company of the sector, showing how much our performance comparing to the company in the United States was superior but with Brazilian valuation suffering not only by the performance of the company, but because of the environment, the interest rates which are discounted in our cash flows. To finish the presentation Park Jacarepaguá in Rio de Janeiro. So why is Multiplan growing? This is the question that we always receive. Why do you continue to grow. There is a space for expansion. Once again, I am I think that you should visit this expansion, and you're going to have the clear response of how much we have to grow. So why growing? Because of a low penetration, I'm not going to spend a lot of time in this slide. They are available for you. But there is very little penetration of shopping malls in Brazil. There is very few cities with shopping centers in Brazil. There's a lot of space for growth. You have a market -- a consumer market that is big, big population with an income per GLA that is also expressive. You'll have people in Brazil that love to try and get you know things. And here, we bring data we have in the third quarter of last year. What can we do? What do we have mapped in our portfolio? Just expansions 157,000 square meters. So almost 3 MorumbiShopping, almost 3x the size of MorumbiShopping. We have multiuse projects, as [ Marcelo ] shown, the expansions and the multiuse projects. But we have another 854,000, [ Marcelo ] correct me if I'm wrong. Golden Lake, 250,000 of private area for sales. It's going to grow more with this change but we have 14 MorumbiShopping of possibility of growth. And still, we have a possibility of an additional computable area of 1.5 million square meters. So there is a lot for Multiplan to do. That's why we are talking to you. And it's not only what we did, but looking ahead, at what we are going to do. We bring a brief illustration of the projects that are in the numbers that I showed you, projects that do not exist physically but they are very real for the company. In the spreadsheets in the screens are engineers and architects, the planning already preparing for these projects. And here, these active management because we're in a vector of growth, and it's impressive to talk about MorumbiShopping with 44 years operating showing how much we still have to grow in this region, how much we're going to grow. The quality not only in the management of our enterprises, but the -- we are always trying to connect better with our consumers. So I'm going to stop here. So we start with the Q&A session. We just need a few minutes to get the chairs on the stage. But, I would like to thank all the team of MorumbiShopping to -- and thank our team to produce this event.

Good morning. So let's start with the Q&A session. I'd like to remind you all online that we're receiving questions via e-mail and at multiplan.com.br. [Operator Instructions] Marcelo Motta from JPMorgan.

I invite Eduardo about the capital allocation issue. But if we think about a positive Brazil that the interest rates with normality how can Multiplan change the expansion and 28, we can think that there is a lot of -- well, can you talk about more about this theme if you can turn a key or if you see a negative scenario or just the expansion.

Okay. Thank you, Marcelo. I think that always accelerating is easier than breaking. And the company has a lot of projects. We can do another rhythm. We can see stability in the horizon. We have to understand if those that are going to take on ahead are going to have a commitment with the reduction of expenses in the country, the level of expense of this country cannot be what it is today. Otherwise, we're going to be suffocated by taxes, taxes, taxes. This is not a sustainable model. I hope that this happens. I am cheering for -- so we can press a more intensive rhythm of expansion, but we have to be careful to wait for this to happen. I think that those that are going to implement this are going to have a difficult transition period. There might be some hiccups. But answering what you answered, I don't see any problem of seeing the greenfield that we don't see in the past. There is a lot of things to be done. So I don't think that Brazil -- I think Brazil grew very little over the last 5 years. We grew a lot, Multiplan lot. It might not seem a lot, but we see the expansion numbers. We completed a cycle of 60,000 meters of GLA. So we are satisfied with what we delivered. If the scenario changes, and we can invest more it will be better. It's very difficult to work with the company and say, well, well, stop a company such as this is bad. So you need to be producing to innovate, to bring improvements on how to operate better. And you saw the growth that we had in the panic from Danone. So I hope that just happens. So the second one, when we see the real deleverage for the expansion of 12%. If we think about the future, here you can comment on M&A, what kind of deal do you seek Well, it's always a maximum that we can. We cannot think about as we've seen here, when you do an expansion, of Morumbi and the others have the same essence, you are defending and you're attacking. So you're bringing the consumer that is not coming to the shopping mall and defending those that are here. So what can we get with the expansion of Morumbi. You don't measure those that are not here. You just measure those that are here. But with this expansion, we brought people that are not coming. You are delivering a different shopping mall. So you can see the impact of the hole. This week, Morumbi went over by the shopping in sales. So that's a good competition that I want, an assay that is better than any other I'd like to promote this, and I think that this has the best return on investment. The company is obsessed by this. I tried to educate the entirety of the team about this. We always have to think about what is the best use of the resources so you can get the best returns.

[indiscernible] from Santander. Congratulations on the presentation. A question about the tax reform. I think that today, there is a big discussion with the retailers on what you believe is the PIX and COFINS you lose this credit and we talk with the retail analysts. Some say, oh, we want a discount. And now we have to pay smaller rent because we lost this credit. So my question is, how is your portfolio helping you for these negotiations? And how do you see the scenario for the tax reform?

So the tax reform is something -- an expansion for other sectors that is a bit inconvenient. The country is not growing since it was born, it was critical, okay. But we are here dribbling and receiving the bonds from Brazilian and try to operate the company. Portfolio protects? Yes, a lot. So I think that it's difficult for someone to say give me a discount because the government is charging me more. So you have your pain. I have mine. We all have ours. So here, we are sometimes in a situation that is difficult. I understand that it's more difficult for the small retailers [indiscernible] they studied more the reform than us, but it's always difficult for the smaller one. I think that we are in a privileged position for having quality assets that protects a lot, but nobody is immune or address well, we live in Brazil. But I want to complement not so technical. Well, we remember about the discount on the rent. What is the rent that is the most expensive that the tenant can pay. That's why they cannot sell. So here, our focus is to help the tenant to perform better. So this trend is more expensive. Let's help let's help them to have a better performance at the shopping mall. This is the best way to contribute. We make the tenant sale. When you look at Multiplan, you don't have a shopping mall company and you have a real estate one. You have several ones together. You have an engineering company events seems obvious to do these works, but it's a lot of risk. And how many times I wake up in the middle of the night? Well, I know about quarter so it's spread throughout for you to be able to do it, you're going to run risks. It's the environment that we would like to be developing with the dynamics that we've had No, but I feel obliged to do it. I can even be old. But I need to train all of my team and look at the generation that is yet to come. The shopping mall has to be prepared for the next generation. Morumbi [indiscernible] all the first 5, number going to the fifth generation, always with this unlock of bringing in something new. Well, you asked about the tax reform. But it's important to -- I think that the most important step that the company has was breaking the tradition of launches. We did a launch for today is decisive for all of those that consume those of you that have kids. Was not looking at me as looking at a cell phone screen. So we changed the way the Z generation consumes with the cell phone on the other hand. We have to be uncertain in that. And we did that here at Morumbi. I was at the launch of the expansion of [ Masaya ]. In regard to the shopping mall, and there was a lot of parties up there. And people wanted together. And then I said, well, what are they doing? This has to be a launch that is for the public of the shopping mall. So this is the mindset. We cannot be fearful of breaking the tradition of innovative innovation. We've measured recently with all the movements that we've done with digital influencers. So the way that you deliver is important. What are you doing to provide for this generation the new consumer Well, we are adopting for a long time. Here, Armando was showing sales and why the sales when the interest rate fluctuates and it grows a lot, it doesn't impact our sales because we became an experience. If you look at the past, it was very connected because the shopping mall was that. The mix of the shopping mall was purchasing, purchasing, purchasing. Not anymore. 50% of our mix is experienced restaurants, and people want to be there. You need to see -- this meeting, when we did it online, it was not that great. Now seeing you here, there is an exchange. So we are interacting and the Z generation wants this. You cannot consume just with 1 dimension. And you see how people are walking around everybody is walking around. So you see in the screen of the computer day research and they don't consume in a way that would they consume. So propaganda, they consume because they say that it is to consume. So you need to pay attention to that. It changed the way of consuming. There is my 20-year-old and they are outside of this -- but we have to be inserted in this place. And I don't think that Multi gets you this, but our communication is to get to this. There's good articles recently in Bloomberg talking about this, not only in Brazil, but throughout the world, but we share this. And we realize that clearly, we have this. They have to interact. They want to see the others. And if it's just a click, it's going to be good. For everything they don't have the pleasure of doing it's a drugstore market. There is people that take pleasure of going to the supermarket. I don't.

So still the questions online. So we received an online question that is congratulations on the presentation. Is there a limit for the physical expansion.

Very few shopping malls in the portfolio cannot have an expansion. They cannot with the current legislation. Since that changes every day and one of the things that we see today, the shopping mall is for body shopping mall is not because the apps bring so many cars so much people and there is a space for us to grow more.

Andre Mazini, Citibank. Variation on the question of Quanta. So if there is no fiscal conciliation. And if there is there is what is the plan to pay more in interest over capital, dividends payout, the company is very reasonable in the average record. So 380 million is policy or payout that is bigger.

So maybe, maybe. Maybe we can, Andre, distribute more so hopefully, it won't be like that. Hopefully, we will be able to grow and delivering real growth, new areas -- new shopping malls, and that's a reflection that the company is doing better. The country is doing better. But if that's not the case, then yes, it can get to this point. always looking at a capital structure that is ideal, trying to deliver the returns to our shareholders. And we are not going to be sitting down in our cash flow. It can be temporary if there is an opportunity. But that's it. Being dynamic is no neo policy is looking at the moment and looking at the opportunities, very volatile, so it cannot be for the rest of the line. So you're going to see the opportunities. Here in Brazil, here is difficult to plan even for the next month. So I thought it was nice when you compare with the American competition, [ Simon ]. So Simon is -- they have shopping malls in Asia. And here, they are in Chile and Colombia. What is your mindset? Well, I'm going to play America. And I think that in Brazil, there is a lot of things that we should do. There, there is a lot of things. And you look at the United States, it's enormous. Simon live because of this capital structure. They get your size, they start to buy, interest rates are low. It's a different game. We develop. Me, a short while ago, and I visited they don't operate. We operate. So I want to believe and I really believe and we demonstrate that the way that we treat the shopping mall is very different. No other player that I know is the outlook that we have for the consumer because efficiency is beautiful. As long as the shopping mall is full. And then people are satisfied, then yes. Well, outside here is an enterprise. The maximum thing that we are going to get is fare. So it's easier to develop it this way. So here from Goldman Sachs. It grew 2 years ago. So 2 last -- there isn't a threshold. So it depends on the opportunity. It depends on the interest rate. Those are going to have a lot of debt in the scenario that we have right now. Nobody wants. I'm sorry, everyone that is here, but nobody wants to work for free. So the important thing is to try and have a balance here. We did the movement that was very big when we purchased the participation of our partner. But you see that we can balance, as you see, between 1.7, 2.2, it doesn't vary that much. But it's evaluated. Now we don't have this metric. We don't do this type of calculation. As I said before, this company is for this. We look at the consumer. So I'm not going to let an asset suffer because I cannot imagine how it would be without our intervention. Once I saw a partner, and we needed to reform. All right. Simple. Either we're going to invest or we're going to have the asset back where we're not going to invest. So it's as simple as I'm telling you. Sometimes you need to do what you need to do. I could not see MorumbiShopping that we are here, which is a shopping model was done with the architecture and decree and everything that was from the 80s because I thought that we were losing money consumers. Sometimes we needed to walk more, we spent BRL 400 million in the year, but there is a return. So it isn't so much -- of course, we don't want to get to very high levels of indebtedness by everything that we mentioned. But we're going to do what we need to do.

So in this line of Eduardo, the strategy of the company is never to be placed in a position that it's not mobile. So the question made me go back. There is a possibility of having a prioritary partner, and we wanted to see the capital allocation we purchased. And we didn't want to buy it so it's -- and that stands from repurchasing and we can always seize these opportunities. So the repurchasing of [indiscernible], 11, CAP 12. It was obvious that you share -- well, nothing is obvious in Brazil. But when you only win money in the graph, -- but those are [indiscernible] of the business. They are from beginning to end.

Second question. So today, there is a month, there is a war but I wanted to know -- but until now, no. Only good news and we have here the store of the [ Zara Group ], which is the one that sells the most in the world. So this is an important brand, not only for [indiscernible].

So 2 questions from Itau. So properties. You got to one of the best brands in 2025. You commented -- the pinpoint economies are going to -- I wanted to understand from your side, 20 might be a year of these economies appearing. And until now, when do you think that we're going to have such a good brand?

Sorry, your name?

Elvis.

Well, as you said, we are really surpassing our numbers for a long time. Well, this year, we hope to have a good year. This is on a good important thing that the company does trying to extract the maximum out of every situation. So you can recover a loss credits, discussion, difference of taxes. So we try everything. So sometimes you don't know where we're going to go. We come from a series that is very positive of actions and results that are positive in this area. I hope that we can deliver in the same threshold.

Another topic, the performance of the company is evident that post dynamic before we -- what do you think that happened to, in fact, openness app post pandemic? And how do you think that this is going to continue.

Well, management -- you can see the need of attracting people. We didn't have many things. You saw that the movies are but the last ones to come back. Well, if the mask is as efficient as it was, so the need to have events to having them all to attract the people to provide for an agenda that didn't exist. So the theater has more audience than the movies. So the movies went through the companies of technology. There is no way of competing. So how does Hollywood make it for you to compete with the technology company. So you have an AI movies. So there is a need of bringing people promoting the meetings made us manage this differently. So there was a period of dynamic that was very difficult for us. And it was almost guarantee that if you went to the shopping mall, you were going to get COVID. So we kept the certificate. So these difficulties made to review the model of operating, how to operate, and we had to close everything overnight. I'm going to pay because other people are going to go bankrupt. But you highlighted this point, Eduardo, which is -- maybe in this relaunching of the company, Eduardo led this with the exemption of rent, so that the retailer, well, we were very aggressive. So that placed us -- well, the retail has to think because we were the only ones that played this card. We actually lost over BRL 1 billion in rent. To me, it was certain. The health of this when it reopens it depends on the tenant date company start to be more efficient in its operations. The dynamic exposed it had a few legacies and the restart of the opening, we had to work with the operations that were reduced. And that was a learning lesson. And we took it there, we started to operate the shopping malls in an efficient way with a higher cost. So there is a point with the management, which is that we can even the issue of Joel. So remember the summer 2020, you were reopening after preserving all the ecosystem that was alive, we had a decision of investing with the Christmas. They did -- it was the most awaited Christmas of all time, people seeing each other, and it was a decision of management and investing along with the banks. So there is an important point of seeing the difference between Brazil, multi-plan and our infrastructure of condominium. You can do the enterprise selling versus what we have in the United States. They didn't have that capacity. So you saw there the company is suffering for 2, 3, 4 years, they start to have a threshold of sales prepanamic now, the international ones. The pandemic actually cost us this building. We had 2, we sold 1 to keep the muscle of the company because of all the discounts. Well, we are alive and better than ever. So the online questions, thank you to all those asked. And now doing a deep dive with the management, being specific of Morumbi. MorumbiShopping was presented as an asset that anticipated the future and reinvented throughout decades. So what were the strategic decisions that were more important to sustain this relevance for so much time. How can we replicate this in the future? I'm going to answer this question being very realistic. There is a one strategic decision every day you make the strategic decision every day closing and trying to do the best that we can with what we have. This is the best strategy of sales for any retailer. So you know how difficult it is to arrive where we get. The expansion of Morumbi has 12 years of the project. It was a cinema, it was an office, but we are assembling this to the last minute. So we produce the studies, let's not get the restaurants. Well, it's going to be viable, but what is the differential. Sao Paulo, we understood that it needed to have that space, which is a space that is covered, open, protected open air but it wasn't done just 1 day. It's done every day. Every day, you're thinking about a project. And the example that I gave you of the changes that we've done in regards to the launch. It was a decision. Well, November, Maceo. So why am I going to do the parties? Well, we have to get the influencers of the retailers that we -- and then we can communicate with who we want. So what we want -- what do we talk about the Z generation and the next generation because they influence ours. Everybody that has a kid will be doing what they're doing. You only influence someone until there answering the question every day, trying to do the best and project operation and the company as a whole. Victor Tapi from Bank of America. It's more a philosophical question. In thinking about the deadline. You're always with the mine in the future and looking at the long term, I think that we can see when you see various metrics, there isn't just a silver bullet, several things that we're doing. And Multiplan innovation is the word that you chose at the beginning. But thinking about 10 years down the line, if you look 10, 20 years behind, do you imagine that the changes that would happen, that exposure to experience and services that is much higher in the shopping malls. Would you think about 10, 15 years ago that, that would happen. Would you foresee Today, looking at the period ahead, well, what do you think starting throughout the world, what do you think is the next step in the change in this model. So I see videos or shopping malls in Asia. Different geographies. It's difficult to know things change, but the technology more and more takes part of the lives of people. I see my kids interacting with AI. But I think that there is an advantage to what we do. Our ecosystem, the platform on the shopping mall is very flexible. So we're leaving the model that is with the purchasing that is experienced and what was ahead. We're always having the connection. We don't want to lose the connection. So you saw generations have changed. We have to think about entertainment, which is important. All of these events, they have a component that is very strong of an entertainment. But to be connected with what will happen ahead is what gives what will mold what the shopping mall is and is not. So Brazil -- and so last place I sold the fridges in the shopping mall. It's connected to these modifications. It's difficult looking ahead and imagine -- but there is a certainty that I can give you. We will be along with the change. And as I told you, Efficiency is great. So we have to feel satisfied with what they're receiving. So it's important not to lose the focus on the consumer. How many companies do you see being lost by x amount of reasons but they are moving away from those that consume their brand. And they don't know why they're making a mistake. I know they're in the store and you say, "Well, this is not what it was. So the price is always right. And for some reason, the price always reflects one thing. We have to pay attention to this. People are lost in these things of Oh, I have to be and represent. You have to look at your consumer. Who is the consumer of your brand now? Who is the future consumer of your brand? Because I would be annoyed if I come to a shopping mall Multiplan, and I would only find people of my age. So I launched Bahrain. But I am happy when I see the other generations here and a lot of children. I did this provocation to a tenant. And I am very satisfied because here you see the family. We see that unlock of looking to the family because you bring the consumer in the future, and you generate this connection and this memory, it's important. Everybody that lived but a shopping and you here people talking, I remember of other generations, remembering other things that are not yours. So it means that we are in the right path. We train to do this.

So Jean Pedro from XP. I have 2 questions. The first, I know how difficult it is to do exercise is. I think it's clear. It's more aggressive for the shopping mall. And I wanted, while the portfolio was always dominant. -- do you foresee in the mid- to long term so that the shopping malls are more relevant. If the flows of -- they can be directed to the Multiplan. And after tax reform got also become and M&A?

San Pedro your question is very good. Let's go back to the slide of the number of sales at Abasand comparing to ours. There is an inflection point of banamic. It was broadly discussed. So when we look ahead, what we see is that gap of increasing more to the good properties. And this is where Multiplan is inserted with the best properties. The tax reform is just an element. There are several others that are embedded here, and we try to discuss this. The issue of the mix of how you manage it, how you attract investors. But it's very easy to look at the whole and see that you are in the same placement and not necessarily you're doing well. We have 2 properties. And they're not going to run the same way. So you didn't have the tax reform. So if you're on the -- by the side -- well, that's the point. The tax reform is just another one of the factors that I think that will make this gap that you saw on the slide, it will continue to increase. that performance of the best properties in regards to the other properties.

Can you share more on the Golden Lake and [indiscernible].

The sales at Lake Erie. [ Marcelo ], correct me if I'm wrong, are in the 75%, 76%. We still have 18 months more to 2021. The efficiency of the project improves a lot. So I can get you 29 stores without adding cost, you have more revenue and more margin in a smaller terrain, we are very trusting in Bicol that we will get you to consumers that didn't have access to Golden Lake. So we start to sell -- so it's a neighborhood. 1,500 units. That will generate 10,000 jobs directly. Zara went back to BarraShoppingSul. It's installing in there. And one of the reasons that they went there was Golden Lake. I'm going to open a second store at Porto Alegre. It was because of the development of the region as a whole. So we are developing the full neighborhood, takes some time. So now there is traction, and it started after the pandemic from Brazil.

So I have 2 questions. First, I wanted to know the -- the size of the investment. You spent BRL 540 billion in the last cycle. So I wanted to know if there is the projected value and understand how much of that expansion has an impact. You talked about the change in the profile and you brought to us. There is discussions with other international names to get to this new shopping mall that you're opening. There's always brands looking for us to get into Brazil. Many give up because they do not understand the complexity, the fiscal complexity of the country.

So we talked to [indiscernible], they hired an office, and they said, I cannot understand even with the office justifying, I'm going to wait for another phase. I don't know if this is going to happen, but there is many brands that see Brazil as an important market for growth. That is one of them. Clearly, their performance is very good here. It grows here. I think that is in their pipeline to bring other brands of their group. You talked about the this is a project. but it will be as transformational as what we've seen. I am certain that in Brasilia, at the end of the year, it's going to happen what happens here because we are delivering a different mall, a different way of consuming and living chicken that is different. That is transformational. There in Brasilia, different than here, you have a shopping mall and then that is about 100 and some meters. So we're going to deliver Brasilia the solution that now it's a structure mall. I am certain that there is the impact that we had in Morumbi. It's an advantage. In Brasilia, when we bought th BarraShopping, we couldn't build anything around it. So we had very few neighbors. Now 41 years, 12, 43, the real estate development is gigantic. And the terrain that is immediately by the side of the shopping mall will grow. We're going to have 30 buildings, and it's more traffic for the place. 10,000 people are going to live there. BarraShoppingSul still have 200 meters. Here, it's contiguous. So you're going to get to the shopping mall. So this is what I think is transformational. It's for you to see an environment that is completely different than what you had. You're going to see Morumbi 2026. This is what we're going to do with the expansions in the day that it happened. [indiscernible] Belo Horizonte wherever. We're always thinking about delivering something better, more connected with the generations of ahead.

So I wanted to understand if you commented the drop in the real estate in the interest rates, it increases the relationship to the business at the same time, with the reform, we have the end of the hedge being programmed. That should impact your appetite for the greenfields because of the end of the the hedge, the real estate.

Well, I think that it will be more impactful for the real estate. We have of course, the shopping centers, we're going to develop it. And then your question is very pertinent because in regards to hedge, it's very detailed and you have to analyze the providers. It's a surgical thing that we need to do. Unfortunately, we're getting to the end of the time, but we have a last question, and then we can close the event. I want to talk about M&A was a strategy over the last year. So it can be Tristy or when we look at Multiplan, almost half of those on our side, it's management and trying to understand. So if I'm selling an asset, 7 or 8 to see an expansion that is going to give me 15. But I'd rather not sell. I don't think that this is the model. I think that this is an opportunity. have a bunch of partners in the company. But at the level of property to manage is very bad. For the property to be good, profitable, as you can see, Morumbi Barra, you have to have control of it. Agility in the decision-making process. And when it's very fragmented, it's much more difficult. Well, we got to the top of the hour. I'm going to give the floor to Eduardo so he can close the event.

It was a pleasure to be with all of you. I wanted to share the satisfaction of planning and being better than what we planned. So I'm very happy with the delivery of Morumbi, very happy with the movement that the company did for the transformation, so that got us to where we want. It's gratifying to see a team that is so engaged that is so dedicated to transforming every enterprise that we have in our portfolio, and that will continue for many, many years. I guarantee you that this is the way. The dedication of the company is total with all the projects that we have. I hope to be with you. So we have this rich exchange of ideas, which is something that taught me a lot. You have a ritual -- we have an exceptional work here, but you review your strategy and you make me work differently. So I wanted to thank you for transforming Multiplan along with us. Thank you.