Iguatemi - Relações com Investidores

History and Corporate Profile

Iguatemi Empresa de Shopping Centers S.A. (previously La Fonte Empresa de Shopping Centers S.A.) was incorporated as a limited liability company on May 23, 1979 and became a corporation on August 11, 1983. Iguatemi is the company among Jereissati Group focused on owning and operating shopping centers in Brazil, with assets that generate more than 4,000 direct jobs.

Founded by Carlos Francisco Ribeiro Jereissati, it debuted in the shopping center industry in 1979 by acquiring the assets of Construtora Alfredo Matias S.A., which included an ownership interest in Iguatemi São Paulo, the first shopping center built in Brazil, in 1966.

In the years that followed it inaugurated several greenfield projects, as part of its growth strategy: (i) Iguatemi Campinas in May 1980 (70.0% stake); (ii) Iguatemi Porto Alegre in April 1983, our first shopping center in the Southern region of Brazil (32.2% stake); (iii) Praia de Belas In October 1991, another important shopping center in the Southern region (37.55% stake); (iv) Market Place in September 1995, its second shopping center in São Paulo and first mixed-use real estate development - mall with commercial towers (32% stake); (v) Iguatemi Rio in September 1996, debuting in the consumer market of Rio de Janeiro (27.7% stake); (vi) Iguatemi Caxias do Sul in 1996, its third shopping center in southern Brazil (8.5% stake); (vii) Iguatemi São Carlos in 1997, its second shopping center in the countryside of the São Paulo state (45% stake).

In February 2007, Iguatemi concluded its initial public offering (IPO) on the São Paulo stock exchange, raising approximately R$550.0 million and becoming the first company in the shopping center industry to be listed in Brazil. In April, Iguatemi Florianópolis was opened, strengthening its market position in the Southeastern region of Brazil (30.0% stake, 20.0% of which was acquired when the shopping center was still under construction and 10.0% of which was acquired after the shopping center was opened). In July, Iguatemi concluded the issuance of non-convertible unsecured debentures, raising R$200.0 million (20,000 debentures with par value of R$10,000 each, in a single series, with a maturity of 7 years and maturity on June 1, 2014). Also in 2007, Iguatemi acquired two new assets, Shopping Center Galleria, in Campinas (50% stake) and Esplanada Shopping Center, in Sorocaba (38% stake), thus consolidating its presence in the countryside of the São Paulo state. Finally, in this same year, Iguatemi acquired additional stakes in its existing malls: (i) it increased its stake by 33% in Iguatemi Rio (reaching 60.7%), (ii) by 3.78% in Iguatemi Porto Alegre (reaching 36%), and (iii) by 11% in Iguatemi São Paulo (reaching 50.5%).

In 2008, Iguatemi increased its ownership interest in Market Place by 68.0% (reaching 100%). It also acquired the entire ownership interest in two office towers which are on top of the shopping center.
On November 25th, 2009, the company issued new shares on a follow-on offering, raising approximately R$410.0 million. Prior to the offering, the controlling shareholder held 54.5% of our ownership interests. After the offering, the controlling shareholder held 53.9%.

At the end of March 2010, it opened Iguatemi Brasília (64.0% stake), the first shopping center in the region and the first shopping center to carry international brands outside of the Rio de Janeiro-SãoPaulo axis.

Iguatemi concluded, on March 18, 2011, the issuance of non-convertible simple debentures, raising R$330.0 million (33,000 debentures with par value of R$10,000 each, in a single series, with maturity of 5 years March 1, 2016). In April, Iguatemi Alphaville was inaugurated (78% stake).

On February 1, 2012, Iguatemi issues simple non-convertible debentures, the company's 3rd issue, raising the amount of R$300.0 million (30,000 debentures with par value of R$10,000 each, in a single series). maturing in 6 years and maturing on February 1, 2018, CDI rate +1.00% pa). On May 14, Iguatemi sold its stake in Iguatemi Rio for R$196.9 million. In June JK Iguatemi (50% stake) was inaugurated, in September the expansion of Shopping Center Galleria (50% stake) was inaugurated and in December Iguatemi acquired 5% of Shopping Center Iguatemi São Carlos, increasing its stake in this mall to 50%.

Iguatemi concluded, on February 28, 2013, the issuance of simple, unsecured non-convertible non-convertible debentures, the fourth issue of Iguatemi, raising R$450.0 million (40,000 debentures in the first series and 5,000 debentures in the second nominative series with a nominal value of R$10,000 each, and maturities on February 15, 2020 and February 15, 2021, of the first and second series, respectively). On July 2, Iguatemi concluded the public offering of primary distribution of shares (follow-on) in the approximate amount of R$425.4 million. On September 24, Iguatemi inaugurated the I Fashion Outlet located in Novo Hamburgo (RS), with 20,087 m² of GLA. On September 30, Iguatemi inaugurated Iguatemi Ribeirão Preto in the interior of the state of São Paulo, with 44,100 m² of GLA. The company concluded on November 13 the acquisition of the remaining 50% of Shopping Center Galleria, now holding 100% of this mall. On November 14, Iguatemi inaugurated the expansion of Iguatemi Esplanada, adding 39,550 m² of GLA to the venture (55.37% stake). Finally, on November 25, the company inaugurated the expansion of Praia de Belas shopping mall, adding more than 17,000 m² of GLA to the mall.

On February 14, 2014, Iguatemi purchased 14% of Shopping JK Iguatemi, raising its stake to 64%. On April 26, the company inaugurated Iguatemi São José do Rio Preto, in the interior of the state of São Paulo, with 42,125 m² of GLA.

On April 30, 2015, Iguatemi completed the expansion of Iguatemi Campinas, which added 19,171 m² of total GLA to Iguatemi. The Iguatemi Campinas complex now has 105,900 sqm of GLA and is consolidated as the largest mall in Iguatemi (73,492 sqm of GLA if Boulevard Iguatemi is not included, annexed to the project). On July 31, Iguatemi indirectly acquired a 3.75% interest in Shopping Pátio Higienópolis I (Shopping Pátio Higienópolis is made up of two parts, Shopping I is the original part of the asset, with 25.8 thousand m² of GLA, and Shopping II is the part of assets related to the expansion carried out in 2010, with 8.3 thousand m² of GLA). Immediately thereafter, on October 1, Iguatemi acquired an additional 8.4% stake in Shopping Pátio Higienópolis from Fundação Conrado Wessel, and now holds a total stake of 11.2% in the venture. Later this year, in September, Iguatemi completed the expansion of Iguatemi São Paulo, adding 1,188 m² of total GLA to the enterprise.

On April 27, 2016, Iguatemi inaugurated the expansion of Iguatemi Porto Alegre, adding 20,376 m² of total GLA to the venture (with this expansion the mall will have a total GLA of 59,302 m²); and in June completed the commercial tower adjacent to Shopping Iguatemi Porto Alegre, with 10,692 m2 of total GLA.

On December 12, 2018, the I Fashion Outlet Santa Catarina was inaugurated with a total of 20,000 m2 of GLA.

In May 2019, Iguatemi announces the signing of a partnership with iFood for a complete solution for the organization of food delivery activity in its shopping malls, aiming to improve the experience at all ends of the chain with (i) the increase. the billing of food service operations in our projects; (ii) the implementation of an efficient takeout solution for food courts, restaurants and supermarkets through the creation of a single shipping area; (iii) the improvement in service levels of food delivery operations for the end consumers of our projects; and (iv) greater convenience and time savings for deliverers, who will not have to travel through the mall. On July 30 Iguatemi sells its 8.4% stake in Shopping Iguatemi Caxias for R$27.8 million and on October 9 Iguatemi sell its 30% stake in Shopping Iguatemi Florianópolis for R$ 110.3 million, reinforcing management's commitment in prioritizing assets more aligned to Company's strategy. In August the company launches its new relationship program, Iguatemi ONE, another step towards enhancing the consumer phygital journey (physical + digital) and strengthening customer loyalty.

Also in 2019, Iguatemi launched its marketplace platform, the Iguatemi 365, bringing together more than 90 brands in one place. It is a premium e-commerce, curated by the Iguatemi brand, which today is synonymous with fashion and lifestyle, offering the customer throughout Brazil the Iguatemi experience 24 hours a day, 365 days a year and, in 2020, from anywhere. This digital medium will strengthen the physical (offline), taking advantage of the store structure, integrating inventory and respecting pricing. With this, we will be present at all times in the consumer journey, as well as increasing access to current and new customers.

In January 2020, Iguatemi acquired 20% of Praia de Belas Shopping Center and 15% of Shopping Center Esplanada. The companya also acquired a minority stake in Maiojama Participações, to leverage real estate development opportunities in the south region of the country. Iguatemi and Maiojama have already jointly developed Praia de Belas Shopping Center, Iguatemi Porto Alegre and Iguatemi Caxias, in addition to numerous commercial and residential developments in the city of Porto Alegre. Among its main assets, Maiojama holds a 14% stake in Iguatemi Porto Alegre.

We are one of the leading full-service companies in the Brazilian shopping center industry in terms of GLA, with the most recognized brand in the industry. Currently, we have investments in 14 shopping centers, 2 outlets and 3 commercial towers, totaling approximately 711 thousand square meters of GLA. Our shopping centers are aimed at upper- and upper-middle-income individuals, to whom we represent a symbol of quality. Our shopping centers are located in the most developed commercial centers in Brazil (the Southeastern, Southern and Midwestern regions) and in the main Brazilian cities. We also develop multi-purpose real estate projects in the vicinity of the shopping centers, in order to benefit from the synergies between these real estate projects and the shopping centers.

Our main shopping centers, Iguatemi São Paulo, JK Iguatemi, Pátio Higienópolis, Iguatemi Campinas and Iguatemi Porto Alegre, charge rent at a rate within the ten most expensive rent per square meter in Brazil. In particular, Iguatemi São Paulo has the most expensive rent per square meter in Latin America, according to Cushman & Wakefield (Main Streets Across the World, 2014-2015) and information provided by publicly-held companies in the industry. Our portfolio of shopping centers and the services provided to our store owners and customers have created the most recognized shopping center brand in Brazil and the among the 60 most valuable brands in the country (source: Exame - "60 Most Valuable Brands in Brazil in 2019").

We have recently launched Iguatemi 365, our marketplace platform, currently bringing together over 350 brands and 15 thousand items in one place. It is a premium e-commerce, curated by the Iguatemi brand, which today is synonymous with fashion and lifestyle, offering the customer throughout Brazil the Iguatemi experience 24 hours a day, 7 days a week, 365 days a year. This digital medium will strengthen the physical (offline), taking advantage of the store structure, integrating inventory and respecting pricing. With this, we will be present at all times in the consumer journey, as well as increasing access to current and new customers.