Institutional Presentation. March

Transcription

1 Institutional Presentation March 2013

2 Marisa at a glance Largest women fashion and lingerie retailer in Brazil 64 years of track record Focus on the middle class National footprint 2 Multiformat store strategy Financial services platform Brand strength

3 Marisa 64 years of a Growth Strategy Foundation Development and Growth Acceleration Current Status Foundation and development of business model Sales Area ( 000 m 2 ) Number of Stores Management professionalization and beginning of strong growth phase Growth acceleration Continuous growth Store maturation Footwear rollout plan More per margin > Future 3

4 C Class : The Emerging Brazilian Middle Class Brazilian Population per Income Class Focus on the C Class Consumers Income Class 181 mm 193 mm 197 mm Income Class: A / B High ( A ) C Average monthly income: R$ ,4% 53,9% +27 million people +11 million people 58,3% Mid-High ( B) Middle Class ( C ) C&A Renner Riachuelo D E Lower Income Source: Data Popular E 2014E 4

5 The Brazilian Apparel Market Apparel Spending in Brazil CAGR of +12,2% over the last 9 years 72,9 D / E Classes 18,0% A / B Classes 33,7% R$ 35,2 bi 25,9 Middle Class 48,3% Source: Data Popular, inflation adjusted based on the IPCA

6 Mature and Sophisticated Marisa Top of Mind Marisa Brand on Apparel Marisa Top of Mind Brand: Middle Top of Class Mind (Dec/11) Surveys Marisa Brand Positioning 1) Marisa Brand on Apparel: Middle Class (Dec/12) 28% 22% 8% 5% 4% 3% 2% Feminine and Sensual 2) Marisa Brand on Lingerie: All Income Classes (Jul/09) Renner Riachuelo C&A Young and Trendy 42% 14% 9% 4% 4% 4% 3% Traditional 6 Source 1) Officina Sophia. Conducted with women of the B and C income classes between 18 and 55 years old in different regions in Brazil Source 2) Nielsen. Conducted with women of the A,B and C income classes in Brazil between 20 and 45 years old in different regions in Brazil and that bought lingerie over the period

7 Store Portfolio Profile of our 368 Store Portfolio as of December/12 Expanded Feminine 1 1 Format Venue Shopping Malls Street Lingerie Southeast South North Region Northeast Midwest Distribution Centers Number of Marisa stores 7

8 Large Portion of the Sales Area Still Under Maturation Sales Area Breakdown by Year of Launch 379,191 m 2 of total sales area as of Dec/ % % 34% of sales area is less than 3 years old More than 128,925 m 2 of sales area still under maturation phase Prior to % % % 8

9 9 Marisa Expanded between 1,000m² and 3,000m²

10 10 Marisa Feminine between 400m² and 1,000m²

11 11 Marisa Lingerie between 100m² and 400m²

12 Recent Achievement

13 More per m 2 : Rationale Objective is maximize Marisa s total return ( More per M² ) Revenue by subsector (in R$/m²) Review the subsectors area allocation, adding lifestyles if applicable Increase subsectors profitability Average Marisa 13 Label Sector 1 Sector 3 Sector 2 Sector 4 Area in m2 Width proportional to sales area (m²)

14 More per m 2 : Introduction of Footwear, Office wear & Plus Size Rationale Co-Branded Card Consumption Profile Results of market research conducted with women between 20 and 40 years old, 50% clients and 50% non clients: 88% want Marisa to offer shoes Other 43% Supermarkets 23% Consumer acquire, on average, 1.8 pairs of shoes on each ticket Average price of shoes significantly higher than apparel Electronics 7% Department Stores 8% Apparel and Shoes Stores 19% Footwear Rollout Plan* Retail Net Revenue per M² More per M² Q 2Q 3Q 4Q * Expected

15 Efficiency Plan Final Results SG&A Savings in the 2012 (R$ million) Ongoing Impacts SG&A / Total Net Revenue Savings 141,1 + Inflation 149,3 55,4 141,2 33,9% + Inflation + Sales Area Growth 689,2 824,6 777,3 32,1% 31,6% 31,9% SG&A 2011 SG&A 2012* SG&A 2012 Actual * 2011 Selling Expenses adjusted by inflation and sales area growth 2011 G&A Expenses adjusted by inflation 15

16 More per Margin: Supply Chain Management Supply chain monitoring process Gross Margin (%) Supplier W (example) ZZZ items Turnover 16 High Performance Low Performance

17 New Sales Channel Strategic Map for 2013

18 Apparel Consumption Investment Thesis Market Unconsolidated apparel retail market in Brazil Underpenetrated and growing market as income increases Addressable market of 800 stores in Brazil 80% 4,8% 3,8% 3,4% 3,4% 3,0% 1,7% C&A Renner Riachuelo Hering Marisa Pernambucanas Outros Positioning & Leading Brand Throughout its 64 years, Marisa has focused on Feminine Apparel Sales And we are top of mind in both Lingerie, for all women classes, and for C Class women in feminine apparel 28% 22% 8% 5% 4% 3% 2% 1,5 UK Solid Growth History 13%+ Sales area increase p.y. since IPO in %+ Sales CAGR since IPO in %+ EBITDA CAGR since IPO in %+ Net Income CAGR since IPO in ,0 US Russia S. Africa 0,5 Brazil Argentina 0, China GDP 18 Source: Marisa, Euromonitor, IBGE and BofA Merrill Lynch

19 Investment Thesis 1 1 Flexible Expansion Plan To capture income increase from real Class C Decentralized Growth Strategy Unbiased to depend on mall projects growth 51 new stores in 2013 and R$ 155 million in investments RS 55 million in maintenance, IT and remodeling Expanded Feminine Multi service & Format 3 store formats to reach women in different shopping timing and venue Consumer Financing to support retail performance Financial Products as ancillary source of results Shopping Malls Southeast Street South 26 Lingerie North Northeast Midwest 2013 Roadmap Consolidation of Rollout Plan of More per Square Diffusion of Efficiency Plan as Cost Control is linked to compensation More per Margin Development of Alternate Sales Channels More per Margin Project Efficiency Plan Conclusion New Sales Channels Footwear 19

20 20 Financial Highlights 4Q12 and 2012

21 Format Same Stores All Stores Number of Stores and Sales Growth Sales Growth Comments 4Q11 4Q % 22.7% 16.9% 20.5% Sales recovery 2.3% 14.1% 7.3% 10.1% Improvement in the performance of the new stores Number of Stores and Sales Area # of Stores Sales Area (thousand m² 4Q11 4Q12 4Q11 4Q12 Marisa Expanded Marisa Feminine Marisa Lingerie Total Factors that contributed to improvement : Assertiveness in the campaign and introduction of new sectors Summer collection well received by customers Macro scenario more favorable 21

22 Retail Net Revenues Retail Net Revenue (R$ million) Comments % 22.7% Growth % Same store sales recovery Improvement in the performance of the new stores Good results from More per M² Project 4Q11 4Q

23 Retail Gross Profit and Gross Margin Gross Margin Gross Profit Retail Gross Profit (R$ million) Comments Comentários 50.8% 51.8% 52.4% 49.9% % Increase of 25.1%, reaching million % 1.0 p.p increase in the gross margin 330,7 413, , ,0 Balanced inventories and less markdowns in the 4Q12 4Q11 4Q

24 Retail Gross Margin Retail Gross Margin Comments 54,1% 53,6% 51,4% 52.5% Average 50,8% 51,8% Retail Gross margin increased 100 basis points, associated with : (i) summer collection well received by customers 4Q08 4Q09 4Q10 4Q11 4Q12 (ii) balanced inventories 52,5% 52,6% 52,4% (iii) stronger sales 51.7% Average 49,1% 49,9% The average of the last 4 years is the appropriate benchmark for comparison

25 % Retail Revenues Selling Expenses Retail Selling Expenses R$/m2 Selling Expenses (R$ million) Comments 33.8% 30.3% 34.6% 32.4% 10.1% increase - 0.5% % 2,077 2, ,8% Growth in nominal terms was lower than sales area growth (10.7%) + inflation (5.84%) in the period + 10,1% 777,3 689,2 219,9 242,2 This result reflects the initiatives of our Efficiency Plan As a percentage of Retail Net Revenues, Selling Expenses decreased 3.5 p.p 4Q11 4Q

26 % of Retail Revenues Retail G&A Expenses G&A Expenses General and Administrative Expenses (R$ million) Comments 5.3% 5.1% 5.8% 4.8% 17.8% Growth - 0.4% Effect of management compensation in 4Q12 (Bonuses) that there wasn t in 4Q % 116,0 115,5 As a percentage of Retail Net Revenues, G&A Expenses decreased 1.0 p.p 34,5 40,7 4Q11 4Q This result reflects the initiatives of our Efficiency Plan 26

27 EBITDA Mg. EBITDA Retail EBITDA and EBITDA Margin Retail EBITDA (R$ million) Comments 13.0% 17.9% 13.6% 13.3% +17.9% 68.6% increase, reaching R$143,2 million 68.6% EBITDA Margin improved 4.9 p.p. in the 4Q12 84,9 143,2 271,5 320,1 4Q11 4Q Mainly due to lower expenses and gross margin gains 27

28 Marisa Cards Accounts Base Active Account Base (million accounts) Comments +17.7% 0,5 0,5 0,4 0,5 0,4 2,3 2,1 2,2 2,4 2,3 0,7 0,7 0,6 0,6 0,6 0,7 0,6 2,1 2,1 2,2 2,3 2,2 2,4 2,6 Private Label: 8.7 million eligible (+9.3%) and 2.6 million active accounts (+17.6%). Co-Branded: 965 thousand eligible (+10.7%) and 731 thousand active accounts (+18.4%). Total active accounts: 17.7% growth 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Private Label Co-Branded Benefits of our loyalty program ( Programa Amiga ) Recovery in the retail activity and in the demand for credit 28

29 Private Label Card Receivables Portfolio Private Label Receivables Portfolio (R$ million) Private Label (R$ million) 4Q12 %Total 4Q11 %Total %Var On time: 436,4 70,7% 361,8 70,2% 20,6% Overdues: 181,0 29,3% 153,9 29,8% 17,6% 1-30 days 77,3 12,5% 60,1 11,7% 28,6% days 26,4 4,3% 17,8 3,5% 48,4% days 21,9 3,5% 20,3 3,9% 7,9% days 20,7 3,4% 21,4 4,1% -3,2% days 18,6 3,0% 18,3 3,5% 1,6% days 16,0 2,6% 16,0 3,1% -0,1% Total 617,4 100,0% 515,7 100,0% 19,7% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% Private Label Card Receivables EFICC jan feb mar apr may jun jul aug sep oct nov dec 19.7% increase in receivables portfolio Recovery in the retail activity Private Label card share on sales recovery Potential delinquency at normalized levels 0.5 p.p. decrease in the past due receivables in regards to total receivables 29

30 SAX Personal Loans Receivables Portfolio SAX Personal Loans Receivables Portfolio (R$ million) SAX Personal Loans (R$ million) 4Q12 %Total 4Q11 %Total %Var On time: 67,8 72,8% 36,7 67,7% 84,9% Overdues: 25,4 27,2% 17,5 32,3% 45,0% 1-30 days 5,5 5,9% 3,3 6,2% 66,0% days 3,3 3,5% 2,2 4,0% 50,9% days 2,9 3,1% 2,0 3,7% 44,4% days 2,6 2,8% 1,9 3,5% 39,2% days 2,3 2,5% 1,7 3,1% 37,2% days 2,1 2,2% 1,5 2,9% 33,5% days 3,4 3,7% 2,6 4,8% 33,2% days 2,3 2,4% 1,6 3,0% 38,5% days 0,9 1,0% 0,6 1,2% 47,0% Total 93,2 100,0% 54,2 100,0% 72,0% 14% 12% 10% 8% 6% 4% 2% 0% SAX Personal Loans EFICC jan feb mar apr may jun jul aug sep oct nov dec 72.0% growth, reaching R$93,2million 5.1 p.p. decrease in the past due receivables in regards to total receivables Potential delinquency at normalized levels 30

31 Consolidated EBITDA Mg. EBITDA / Consolidated Net Revenue EBITDA Consolidated EBITDA (R$ million) 14.5% 21.5% 16.5% 17.3% % ,9 80.1% 17,9 113,9 136,8 4,6 21,8 84,9 12,9 44,3 143,2 271,5 320,1 4Q11 4Q

32 Net Financial Debt Net Financial Debt Comments Net Debt (R$ million) Net Debt Gross debt (A) 772,0 984,5 Short term debt 89,7 297,5 Long term debt 682,3 687,0 Cash and equivalents (B) 286,5 641,7 Net debt (A) 485,5 342,8 Shareholder equity (B) 1.039,0 857,8 Total capital (A+B) 1.524, ,6 Financial Leverage Gross debt / (Gross debt + Equity) 43% 53% Net debt / (Net debt + Equity) 32% 29% Net debt / EBITDA (x) 0,97x 0,85x Net debt reached R$485.5 million Strategy of optimizing capital structure implemented during 2011 Target leverage: 40% of net debt to Equity 32

33 Capex Capex (R$ million) Capex (R$ million) 4Q12 4Q11 %Var %Var New stores 55,7 65,6-15,1% 116,2 180,4-35,6% Stores remodeling 4,2 8,3-49,5% 17,8 35,4-49,9% Logistics 4,6 1,9 143,1% 6,2 13,9-55,4% IT 6,3 2,9 116,2% 23,4 12,9 81,7% Others 7,3 3,3 123,1% 20,4 12,4 64,2% Total 78,2 82,1-4,8% 183,9 255,0-27,9% Expansion Plan Capex reached R$ 78,2 million 25 stores opened in 4Q12 Formats: 15 Marisa Expanded and 10 Marisa Feminine. Delay in the opening of a shopping mall 32 new stores opened in 2012; initial plan were 33 stores 33

34 Paulo Borsatto CFO and IR Director Francisco Bianchi IR Manager Gabriel Succar IR Analyst Contact: Investor Relations Team