1/28 OPERATIONAL AND FINANCIAL HIGHLIGHTS

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1 2,325 GROWTH OF 17% IN SAME STORES NET REVENUES IN 4Q09, GROWTH OF 23% IN CONSOLIDATED EBITDA AND OF 75% IN NET INCOME PER SHARE IN Rio de Janeiro, March 11, 2010 Lojas Americanas S.A. [BOVESPA: LAME3 (common) and LAME4 (preferred)], the company that is one of the leading retail chains in Brazil with 476 stores (as at December 31, 2010) and a presence in 22 states plus the Federal District, today announced its results for the 4 th quarter (4Q09) and the year of For the effects of comparison between the periods, the Company applied the adjustments from Law /07 to its 4 th quarter 2008 results. Consolidated Gross Revenues (R$ million) CAGR = 28.8% 2,949 3,640 5,020 7,722 9,260 10,593 Consolidated Operational Expenses without Depreciation & Amortization (%NR) CAGR = 31.0% % % Consolidated EBITDA % % % 1, % EBITDA (R$ MM) Net Income (R$ million) EBITDA (%NR) CONFERENCE CALL Date: March 12, 2010 Time: 1 p.m. (US EST) / 3 p.m. (Brazil) Access in English: +1 (786) Access in Portuguese: +55 (11) % OPERATIONAL AND FINANCIAL HIGHLIGHTS Consolidated Parent Company Var. (%) Financial Highlights (R$ MM) Var. (%) restatement restatement 10, , % Gross Revenues 5, , % 8, , % Net Revenues 4, , % 2, , % Gross Profit 1, , % 30.9% 32.0% -1.1 pp Gross Margin (%NR) 30.2% 31.2% -1.0 pp 1, % EBITDA % 13.2% 12.8% +0.4 pp EBITDA Margin (%NR) 14.0% 13.8% +0.2 pp % Net Income % 1.8% 1.3% +0.5 pp Net Margin (%NR) 3.3% 2.3% +1,0 pp Executive Summary 2009 Comparison to 2008 (except where otherwise indicated): Growth of consolidated gross revenues of 14.4% and 14.3% for the Parent Company; Growth of consolidated net revenues (NR) of 19.5% and of 17.2% in the Parent Company. Growth of same stores net revenues of 17% in 4Q09 and 11% in 2009; Reduction of 1.5 percentage point (pp) (%NR) in the consolidated operating expenses without depreciation and amortization and 1.2 pp (%NR) for the Parent Company; Growth of 34.1% for the consolidated operating result* and of 24.9% for the Parent Company; Consolidated EBITDA of R$ 1,100.3 million, or 13.2% of NR, equivalent to growth of 22.9% and R$ million or 14.0% of NR in the Parent Company, representing an increase of 19.0%; Net income of R$ million, compared to net income of R$ 89.5 million in 2008, equivalent to growth of 69.8%; Working Capital (parent company) - improvement of 10 days in net working capital; B2W Growth of 49% in B2W s consolidated EBITDA and growth of 16% in the gross revenue in 4Q09; FAI - Financeira Americanas Itaú (FAI) closed the 4Q09 with about 2.6 million cards issued and R$ 798 million in volume of receivables. During 2009, the share of FAI cards (private label and co-branded) surpassed 15% of the parent company s sales. SEMPRE MAIS BRASIL program 400 new stores in the next 4 years. There was a financial restatement of 2008 figures, with non-cash effects, as explained in page 6 of this Earnings Release. * Operating income before Financial Income and the Equity Restatement. Charts 4Q means the accumulated results for the fourth quarter of each year. Only the data from 2008 and 2009 are in compliance with the corporate Law in effect after the promulgation of Law /07. The historic data from 2003 to 2007 are in compliance with the corporate Law in effect on the dates when they were published. 1/28

2 MANAGEMENT S MESSAGE TO OUR CLIENTS, SHAREHOLDERS, ASSOCIATES AND SUPPLIERS: In 2009, we opened 14 new stores and grew our main operating indicators. In this context, our Annual Consolidated Gross Revenue, which includes the Brickand-Mortar Stores, the subsidiaries B2W Companhia Global do Varejo and FAI Financeira Americanas Itaú, rose 14.4%, totaling R$ 10.6 Billion. EBITDA was R$ 1.1 Billion, which represents a 22.9% increase, with an EBITDA margin of 13.2%, up 0.4 pp in comparasion with Net income for the period was R$ Million, an increase of 69.8%. In the brick-and-mortar retail network, Gross Revenues increased by 14.3%, totaling R$ 5.6 Billion, whereas Net Revenues were up 17.2% for the period, with the difference in growth due to the introduction of the ICMS Tax Substitution Regime (ST) in some of the Brazilian states. In the same stores concept, net revenue increased 11% over B2W the subsidiary that offers products and services via the Internet, television, telephone, catalogs and kiosks, reached consolidated sales of R$ 5.1 Billion, a growth of 14.0%, with an EBITDA margin close to 14%. The net income posted during the period by B2W was R$ 48 Million. Moreover, during 2009 we celebrated, with immense pride and delight, the anniversary of the 80 years of LOJAS AMERICANAS. In 2010, as in previous years, we will continue to pursue our learning path and to overcome obstacles, and this makes us enthusiastic since it will enable us to achieve new levels of results, always seeking to better meet our customer s needs. Finally, we would like to thank our associates for their dedication and efforts and our suppliers, customers and shareholders for their trust and support. THE MANAGEMENT We always want more 2/28

3 Multichannel Retail Structure Clients are served via bricks-andmortar stores, Internet, telephone, catalogues, TV and kiosks. Financial services are offered through FAI MULTICHANNEL RETAIL STRUCTURE Lojas Americanas operates through a multichannel service structure. In addition to the bricks-and-mortar store chain, the Company reaches customers with a wide range of products and services sold via Internet, telephone, TV, catalogues and kiosks. B2W Companhia Global do Varejo, formed from the merger between Americanas.com and Submarino in 2006, has a portfolio that includes the Americanas.com, Shoptime, Submarino, Blockbuster Online, Ingresso.com, Submarino Finance and B2W Viagens brands, which offer more than 30 categories of products and services through the Internet, telephone sales, TV, catalogues, and kiosk distribution channels. Lojas Americanas stake in B2W at the close of the fourth quarter of 2009 was 56.62%. It is also worth mentioning the participation in Financeira Americanas Itaú (FAI), a joint venture with Banco Itaú, responsible for offering credit and financial products to clients. The following organizational chart illustrates the integrated approach of Lojas Americanas: Multichannel Retailer Bricks-and-Mortar Ecommerce, Telephone Sales, Catalogues, TV and kiosks. Financial Products Participation: 50% Results Consolidation: 50% Participation: 56.62% Results Consolidation: 100% 3/28

4 GENERAL CONSIDERATIONS We are presenting the performance comments relative to the fourth quarter of 2009 and cumulative through December 2009 of the Parent Company (Lojas Americanas) and the consolidated operations (Lojas Americanas, subsidiaries and jointly-controlled company taken together). In 2009, the Company inaugurated 14 stores 12 in the Traditional model and two in the Express model and we transferred six BLOCKBUSTER stores to already existing Lojas Americanas. Besides the stores that were inaugurated by the close of 2009, we opened one more store in 2010, and up until this moment, we have another 15 scheduled openings and 25 stores with contracts being prepared to be opened, which makes us optimistic that we will surpass 60 new stores in The Company continues its operational strategy of preservation of cash and the year of 2009 was characterized by a better combination between the growth of sales, profitability, working capital and the Company s capital structure. Evolution of Sales Area x Number of stores Position at December 31 Sales Area (thousand m²) Stores Stores Stores Stores Stores Stores Stores Stores Number of Stores dec/02 dec/03 dec/04 dec/05 dec/06 dec/07 dec/08 dec/09 For analysis of the Company s margins as a percentage of net revenue (NR), it is worth mentioning that the ICMS Tax Substitution Regime (ST) took effect in some Brazilian states, mainly in the state of São Paulo where most of our suppliers are located and where we have 185 stores. The ST, which changes the way ICMS is collected for some product segments, registers the tax as Cost of Goods Sold (COGS) rather than as a tax on sale. The accounting information that follows, except where otherwise indicated, is presented according to the rules issued by the Brazilian Securities Exchange Commission (CVM) and in Reais (R$). For the purpose of comparison between the periods, the Company conducted the applicable adjustments to the financial statements regulated by the CVM and the Accounting Pronouncements Committee (CPC), so that the results of this year and the previous year are adjusted to Law /07. 4/28

5 80 th ANNIVERSARY CELEBRATION AND SEMPRE MAIS BRASIL PROGRAM Ever since 80 years ago, when its first store was inaugurated in Niterói, Rio de Janeiro, the history of Lojas Americanas has been intertwined with the history of the Brazilian people. For 80 years we have been bringing the best products and the best offers to our clients. Celebration of the Company s 80th Anniversary. Between 2000 and 2009, Lojas Americanas grew five times in terms of number of stores, six times with respect to consolidated gross revenues and approximately 140 times in terms of consolidated operating cash generation (EBITDA), going from a consolidated EBITDA margin (% NR) of 0.6% to 13.2%, which demonstrates how solid our growth strategy has been and strengthens the opportunities that exist for us in the country Growth: 5x number of stores 6x consolidated gross revenue 140x consolidated cash generation SEMPRE MAIS BRASIL Plan to open 400 stores in the next 4 years. We reached a total of more than 470 stores around Brazil and we have the biggest e-commerce operation in Latin America represented by the B2W Companhia Global do Varejo subsidiary, which with its diverse brands covers all of Brazil s territory. Lojas Americanas and B2W together, employ some 15,000 associates and also generate about 40,000 indirect jobs. In the stores, the circulation of clients reaches some 2.0 million a day during periods of major events. For the next four years (the period), according to our Strategic Plan, we intend to open 400 new stores in Brazil, what we call the SEMPRE MAIS BRASIL program. This program is based on our analytical model, which considers different macroeconomic data, including: population growth, per capita income and local economic development. To achieve this record growth, the Company will count on the execution capacity of its associates, its expertise in choosing store locations and negotiating new points of sale, its logistical system for the distribution of its assortment of products and its talent recruitment and training program. 5/28

6 FINANCIAL RESTATEMENT NOTE Lojas Americanas SA ("Company"), pursuant to CVM Instruction 358/2002, hereby informs that in order to better reflect the economic substance of hedge operations by it in light of the accounting standards foreseen under current legislation, the Board of Directors approved the implementation of adjustments to the annual financial statements for the fiscal year ended in December 31, 2008 ("Financial Statements") and quarterly financial statements for the year 2009, with their respective comparisons with 2008, which were today restated at the Securities and Exchange Commission and is available within the IPE System. The Company is clarifying, at this appropriate moment, that it makes use of traditional swaps in order to cancel the foreign currency risk of its loans in foreign currencies, transforming the cost of these debts into local currency and local interest rates. These swap operations and their respective loans that are the object of the hedge qualify for the application of hedge accounting, since such operations are perfectly matched in terms of values, limits and interest rates, pursuant to IAS 14 (Financial Instruments) and were designated this way upon the initial implementation of Law /07 for the preparation of its financial statements, with the issuance of an audit opinion without restrictions. However, a further review of the procedures adopted under the new system of accounting standards in force in Brazil has shown that upon the original application of hedge accounting, the Company, supported by its independent auditors of the time who in turn issued an opinion without restrictions recognized accounting impacts now understood as being not aligned with its intention upon contracting these operations and that did not adequately account for their respective economic impacts, in view of subsequent, particularly complex analysis of accounting techniques conducted regarding this issue, especially in the context of reformulation of Brazilian accounting standards as a result of Law no /07. It is worth mentioning, nevertheless, that such hedging and swap operations do not have any speculative purpose, and neither representing nor would represent exposure of the Company beyond what was herein described, characterized as an example of the so-called perfect hedge. It should be noted further that the accounting effects mentioned above completely cancelled each other out at the end of the contracted term and neither represent nor would represent additional cash entries or payouts, merely having created a temporary mismatch in the income statements. The complete financial statements and quarterly financial information are available on both the CVM ( and the Company ( websites, reflecting the already mentioned adjustment that is the subject of Explanatory Note 2(a), where the issue is more widely explained, along with the independent auditors' report, issued without restrictions, and the Audit Committee s report. Also available is a presentation to investors with the most significant figures for the 2009 fiscal year. Additionally, the changes in equity, cash flows and value added statements as well as the relevant explanatory notes have also been restated to show the account balances adjusted after the corrections mentioned in the previous paragraphs. For the period encompassed by the represented financial statements, THE COMPANY DOES NOT HAVE ANY TERM, SWAPTIONS, SWAPS WITH RECALL CLAUSES, FLEXIBLE OPTIONS, DERIVATIVES EMBEDDED IN OTHER PRODUCTS OR SO-CALLED EXOTIC DERIVATIVES. THE COMPANY AND ITS SUBSIDIARIES DO NOT OPERATE WITH DERIVATIVE FINANCIAL INSTRUMENTS FOR THE PURPOSE OF SPECULATION. 6/28

7 Growth of 15.5% in Consolidated Gross Revenues and 13.2% for the Parent Company in 4Q09 vs. 4Q08. OPERATING PERFORMANCE Gross Revenues In the fourth quarter of 2009 (4Q09), the Company s consolidated gross revenues totaled R$ billion, representing a 15.5% increase over the same period of 2008 (4Q08). For the parent company, the 4Q09 gross revenues totaled R$ billion, compared to R$ billion registered in 4Q08, the equivalent to a 13.2% growth. In 2009, the Company s gross consolidated revenues totaled R$ billion, an amount that was 14.4% higher than the R$ billion recorded in From the parent company s point of view, accumulated gross revenues totaled R$ billion, 14.3% higher than the R$ billion reported in Fourth quarter 826 Consolidated Gross Revenues (R$ million) 3,298 CAGR = 26.0% 2,579 2,856 1,006 1,315 1,821 Parent Company Gross Revenues (R$ million) 1,838 CAGR = 17.1% 1,623 1,449 1, Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 Accumulated through December 2,325 Consolidated Gross Revenues (R$ million) 10,593 CAGR = 28.8% 7,722 9,260 2,949 3,640 5,020 Parent Company Gross Revenues (R$ million) 5,579 CAGR = 18.5% 4,115 4,883 3,374 2,465 2,738 2,012 Consolidated Gross Revenues per Associate In 2009, consolidated net revenues per Associate was R$ 669,400, the equivalent of an increase of 16.0% compared to /28

8 Consolidated Gross Revenues per Associate (R$ thousand) CAGR = 16.6% % growth of same stores Net Revenues in 4Q09 vs. 4Q08 Net Revenues Lojas Americanas and its subsidiaries consolidated net revenues in 4Q09 totaled R$ billion, compared to the R$ billion registered in 4Q08, the equivalent to growth of 24.3%. The Parent Company s net revenues in 4Q09 totaled R$ billion, compared to the R$ billion registered in 2008, the equivalent to a growth of 18.1% between the periods. In 2009, consolidated net revenues of Lojas Americanas and its subsidiaries was R$ billion, 19.5% higher than the previous year. The Parent Company s net revenues totaled R$ billion in 2009, up 17.2% over Under the same stores concept, that is, excluding new stores with less than one since their openings, the increase of net revenues in 4Q09 was 17% over 4Q08. The growth of same stores net revenues in 2009 was 11%. Gross Profit Consolidated gross profit in 4Q09 was R$ million. The consolidated gross margin in 4Q09 was 32.6% of net revenues (NR), compared to the 34.1% reported the previous year. From the Parent Company s point of view, gross margin in 4Q09 was 33.4% of the NR whereas in 2008 it was 34.6% of the NR. Consolidated gross profit for the year was R$ 2,577.5 million, 15.4% higher than the accumulated amount for the previous year. The gross consolidated margin in 2009 was 30.9% of net revenues (NR), compared to a 32.0% margin in For the Parent Company, gross profit was R$ 1,391.0 million during the year, 13.4% higher than the accumulated amount the previous year. The Parent Company s gross margin in 2009 was 30.2% of the NR, compared to the 31.2% margin the previous year. Over 2009, new categories were introduced into the tax substitution regime, mainly 8/28

9 in the state of São Paulo, which affected the gross margin, because under the tax substitution regime the ICMS tax incurs on the Cost of Goods Sold (COGS) and no longer on the sales tax line. Consolidated Gross Profit (R$ Million) Parent Company Gross Profit (R$ Million) Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q Consolidated Gross Profit (R$ Million) 1, , , , Parent Company Gross Profit (R$ Million) , , Operating Expenses In 4Q09, the consolidated operating expenses (without depreciation and amortization) totaled R$ million, or 14.3% of net revenues (NR), a decline of 2.7 pp compared to the previous year. From the Parent Company viewpoint, the operating expenses (excluding depreciation and amortization) in 4Q09 totaled R$ million, or 13.1% of the NR, compared to R$ million, or 14.3% of the NR in 4Q08. In 2009, the consolidated operating expenses (without depreciation and amortization) totaled R$ 1,477.2 million or 17.7% of net revenues, a decline of 1.5 pp from the previous year. It must be taken into consideration in this analysis the opening of 14 stores in 2009; the evolution of sales through our e-commerce operations, which grew 14% in the year of 2009; and Financeira Americanas Itaú, which grew its receivables portfolio by 56%, reaching a level of R$ 798 million (50% consolidated in Lojas Americanas). From the Parent Company viewpoint, the operating expenses (excluding depreciation and amortization) in 2009 totaled R$ million, or 16.2% of net revenues, a reduction of 1.2 pp from the previous year. 9/28

10 Consolidated Operational Expenses without Depreciation & Amortization (%NR) Parent Company Operational Expenses without Depreciation & Amortization (%NR) Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 Consolidated Operational Expenses without Depreciation & Amortization (%NR) Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 Parent Company Operational Expenses without Depreciation & Amortization (%NR) Q09 vs. 4Q08 Growth of 39.1% in the consolidated operating income Operating Income In 4Q09, the consolidated operating income* was R$ million, representing an increase of 39.1% compared to The operating margin (%NR) in 4Q09 rose 1.7 pp over the same period of The Parent Company s operating income in 4Q09 was R$ million, the equivalent to an increase of 21.0% over the previous year. The operating margin (%NR) rose 0.4 pp over the same period of In the accumulated result for 2009, the consolidated operating income was R$ million, representing a 34.1% increase over The operating margin (%NR) rose 1.2 pp compared to the previous year (%NR). The evolution of the performance of Lojas Americanas and its subsidiaries, which over the past six years presented an annual growth rate (CAGR) of 31.8%, indicates that the Company s strategy is converging to consolidate its competitive advantages and is adding opportunities for the growth of profitability over the long-term. The Parent Company s accumulated operating income in 2009 was R$ million, the equivalent to growth of 24.9% when compared to The operating margin (%NR) was up 0.7 pp over the previous year (%NR). 10/28

11 86.2 Consolidated Operating Income (R$ million) CAGR = 31.1% Parent Company Operating Income (R$ million) CAGR = 22.8% Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 Consolidated Operating Income (R$ million) CAGR = 31.8% Parent Company Operating Income (R$ million) CAGR = 23.4% * Operating Income before Financial Income, Equity Restatement and Other operating revenues (expenses). EBITDA In 4Q09, consolidated EBITDA* totaled R$ million, representing a 33.3% increase over The consolidated EBITDA margin for 4Q09 was 18.3% of net revenues (NR) compared to the 17.1% of NR the previous year, an improvement of 1.2 pp. From the Parent Company viewpoint, the 4Q09 EBITDA totaled R$ million, up 18.5% over the same period of the previous year. The parent Company s EBITDA in 4Q09 was 20.3% of NR, compared to the 20.2% margin of NR in 4Q08. In 2009, the consolidated EBITDA totaled R$ 1,100.3 million, representing 22.9% growth over The consolidated EBITDA for the year was 13.2% of net revenues, compared to 12.8% of NR recorded in In 2009, the Parent Company s EBITDA was R$ million, the equivalent to 19.0% growth over The EBITDA margin of the Parent Company during the period was 14.0% of NR, 0.2 pp higher than recorded in The following table shows the EBITDA per company: 2009 %NR 2008 %NR Var. ($) Var. (%) EBITDA 1, % % % LOJAS AMERICANAS % % % B2W % % % FAI, BWU AND OTHERS (32.4) - (52.6) % 11/28

12 It is important to observe that the EBITDA has grown constantly to a level higher than the growth recorded for gross revenues. During 2003 to 2009 period, the compound annual growth rate (CAGR) of consolidated EBITDA was 31.0%, compared to a 28.8% rate of growth of consolidated gross revenues. For the Parent Company, over the same period, the CAGR was 23.0% for the EBITDA and 18.5% for the Gross Revenues. Fourth quarter Consolidated EBITDA CAGR = 30.4% % 15.3 % 15.3 % 15.1% 16.7% 17.1% 4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 EBITDA (R$ MM) EBITDA (%NR) % Parent Company EBITDA CAGR = 22.7% % % 15.3 % 15.4 % 16. 1% % 4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 EBITDA (R$ M M ) EBITDA (%NR) 20.3% Accumulated through December Consolidated EBITDA 1,100.3 CAGR = 31.0% % % 11.2 % 12.0 % 12.0 % 12.8 % EBITDA (R$ M M ) EBITDA (%NR) 13.2 % Parent Company EBITDA CAGR = 23.0% % % 11.0 % 11.6 % 11. 5% % EBITDA (R$ MM) EBITDA (%NR) % * EBITDA (Earnings before interest, taxes, depreciation and amortization and excluding other income and expenses) is presented as additional information because we believe it represents an important indicator of our operating performance, as well as being useful for the purpose of comparison of our performance with that of other retail sector companies. However, no number should be considered by itself as a substitute for net income calculated according to Brazilian Corporate Law and the rules of the Brazilian Securities Exchange Commission (CVM) or, furthermore, as a measure of the profitability of the Company. Moreover, our calculations may not be compatible with similar measures adopted by other companies. Sales by Means of Payment The sales by means of payment for 2009 and 2008 are shown in the following table: Sales by Means of Payment Mean of Payment Parent Company Consolidated Chg Chg. Cash 53% 51% +2 pp 39% 36% +3 pp Check 1% 1% - 0% 1% -1 pp Credit Card 32% 40% -8 pp 50% 57% -7 pp Private Label Cards* 14% 8% +6 pp 11% 6% +5 pp *Considers the Financeira Americanas Itaú and Submarino Finance private label cards. 12/28

13 Gain of 10 days in the Parent Company s net working capital 2009 vs Working Capital The Parent Company s net working capital improved by 10 days when compared to 4Q08. The improvement in Lojas Americanas working capital in 2009 demonstrates the constant striving to improve our operating processes and the development of partnerships with our suppliers. better Suppliers (Parent Company) days better 98 Inventories (Parent Company) 1 day Q08 4Q08 1Q09 2Q09 3Q09 4Q09 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 better Accounts Receivables (Parent Company) 2 days better 35 Net Working Capital (Parent Company) days Q08 4Q08 1Q09 2Q09 3Q09 4Q09 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Days of inventories: [360 / (COGS last 12 months / balance of inventories)] Days of suppliers: [360 / (COGS last 12 months / balance of suppliers)] Days of accounts receivables: [360 / (Gross Sales of the last 12 months/ balance of gross credit card accounts receivable)] Days of net working capital: (days of inventories days of suppliers + days of accounts receivables) The amounts referring to 3Q08 do not include the effects of Law /07 Financial Result For 4Q09, net financial income totaled R$ million from the consolidated viewpoint. For the previous year, this same indicator was R$ million. In the Parent Company viewpoint, the net financial income for 4Q09 was a negative R$ 63.1 million and in 4Q08 this same indicator was a R$ 73.1 million loss. For the year, consolidated net financial expenses totaled R$ million compared to R$ million in For the Parent Company, net financial expenses in 2009 were R$ million, or 6.4% of new revenues (NR). In 2008, this same indicator was R$ million, or 13/28

14 6.8% of NR. It is important to emphasize that for better evaluation of the Parent Company s net financial income we must consolidate the financial revenues and expenses of the non-operating subsidiaries (Klanil, Louise, BWU and others). Thus, in the following table we present a view of the financial income with the aforementioned effects. Breakdown of the Net Financial Result - R$MM restatement Variation R$ MM % (+) Interest and monetary variation on money market investments % (+) Law /07 adjustments % (=) Total Financial Revenues % (+) Interest and monetary variation on loans and financing (293.3) (327.7) % (+) Monetary variation on tax liabilities (11.9) (12.0) % (+) Tax on financial transactions (7.8) (10.3) % (+) Law /07 adjustments (89.6) (84.1) % (=) Total Financial Expenses (402.6) (434.1) % Parent Company Net Financial Result (before non-operating subsidiaries) (297.0) (265.6) (31.4) 11.8% (+) Net Financial Result of Non-Operating Subsidiaries and FAI % Parent Company Net Financial Result (after non-operating subsidiaries) (262.8) (235.6) (27.2) 11.5% (+) B2W Net Financial Result - consolidated (285.7) (175.2) (110.5) 63.1% Consolidated Net Financial Result (548.5) (410.8) (137.7) 33.5% The net financial expenses of the Parent Company for 2009, taking into account the aforementioned effects and before B2W, totaled R$ million and presented an increase of 11.5% whereas the Parent Company s net revenues rose by 17.2%. The Company continues to reaffirm its commitment to a conservative cash investment policy, manifested through the utilization of hedge instruments, in foreign currencies, to offset eventual foreign exchange rate fluctuations, whether relative to financial liabilities or total cash position. These instruments offset the foreign exchange risk, transforming the cost of the debt to local currency and interest rates (as a percentage of the CDI*). Similarly, it is important to mention that the Company s cash is invested with Brazil s largest financial institutions. * CDI Interbank Deposit Certificate: average rate of funding through the interbank market. Net Income and Earnings per Share Net income for the fourth quarter of 2009 was R$ million, an amount 55.9% higher than the R$ 87.8 million reported for the same period of Net income for 2009 totaled R$ million, compared to the R$ 89.5 million reported for 2008, the equivalent to an increase of 69.8%. It is important to note that in 2009, net income per outstanding share (excluding shares held in treasury) was R$ 0.21, 75% higher than the R$ 0.12 presented the 14/28

15 previous year. The following table shows the main variations in the EBITDA with regard to the Parent Company s net income: RECONCILIATION OF THE NET INCOME Lojas Americanas (Parent Company) R$MM Var. ($) Var. (%) restatement EBITDA % (+) Depreciation/Amortization (121.0) (122.2) % (+) Parent Company Financial Result (297.0) (265.6) (31.4) 11.8% (+) Equity Accounting (B2W) (8.4) -23.8% (+) Equity Accounting (FAI) (25.1) (37.7) % (+) Other Subsidiaries Equity Accounting / Other operat. Inc. (exp.)* (10.3) (16.1) % (+) Statutory Participation (7.4) (7.0) (0.4) 5.7% (+) Income and social contribution taxes (58.1) (38.2) (19.9) 52.1% NET INCOME % NET INCOME PER SHARE % OUTSTANDING SHARES 725, ,644 * In the old accounting rules, named as non-operationg income. INDEBTEDNESS Lojas Americanas uses its cash flow to prioritize investments that generate the best returns for shareholders. We have listed below the main actions carried out in 2009: Investments made by Lojas Americanas and B2W in property, deferred and intangible assets (development of Web sites and systems) in the amount of R$ million; Payment of interest on own capital and gross dividends in the amount of R$ 30.4 million; The buy-back of own shares (LAME3 and LAME4) in the amount of R$ 2.6 million; Own share buy-back by B2W in the amount of R$ 818 thousand. Lojas Americanas consolidated short- and long-term loans on December 31, 2009 totaled R$ 3,854.0 million. If we deduct the cash position of R$ 3,087.3 million (cash + money market investments + accounts receivable from credit and debit cards + 50% of FAI s consumer financing) from total loans, we arrive at a net debt position of R$ million. 15/28

16 Consolidated Indebtedness 12/31/2009 restatement 09/30/2009 restatement 12/31/2008 Short-term loans and financing ,826.7 Short-term debentures Short-term indebtedness , ,940.1 Long-term loans and financing 2, , ,345.0 Long-term debentures Long-term indebtedness 2, , ,074.9 Gross indebtedness 3, , ,015.0 Cash and banks Money market investments 2, , ,178.0 Receivables from clients (credit/debit cards) Customers financing - FAI (50%) Total Cash and Cash Equivalents 3, , ,062.6 Net Cash (Debt) (766.7) (1,288.8) (952.4) Average maturing term of the debt In order to face the uncertainties and volatility of the financial market, Lojas Americanas is guided by the principle of preserving cash and extending its debt profile. During the past year a number of measures were taken with this objective in mind, permitting us to consolidate the Company s growth plan over the longterm. Parent Company s capital expenditures totaled R$ 98.9 million in As can be seen in the previous table, gross consolidated short-term debt declined by R$ billion between December 31, 2008 and the same period of In counterpart, the long-term debt rose R$ million, reducing the gross debt by R$ 161 million and improving the average debt maturity from 610 days to 800 days (from 20 to 27 months), extending the average maturity by 31%. Compared to September 30, 2009, we reduced the Company s consolidated net debt by R$ million. CAPITAL EXPENDITURES AND EXPANSION Parent Company Investments Lojas Americanas, from the Parent Company s viewpoint, invested in 2009 a total of R$ 98.9 million, with emphasis on: expansion and refurbishment of the store network, technological updating and improvements of our operations/logistics processes. It is also included in the total amount, R$ 22.1 million of investments in goods for rental. The following table shows the details of Lojas Americanas Parent Company capital investments during the year: 16/28

17 R$ million % Openings and Refurbishment 46,1 47% Goods for rental 22,1 22% Operations and other projects 19,9 20% Technological upgrade 10,8 11% TOTAL 98,9 100% Expansion of the Chain of Stores Opening of 14 stores We intend to create value for our shareholders, following our internal motto We in in the Always Want More. The Lojas Americanas expansion project takes place on three Traditional model main fronts: Lojas Americanas (brick-and-mortar retail), B2W (Internet, telephone and 2 in the Express sales, catalogues, TV and kiosks) and Financeira Americanas Itaú (financial model. products). Over the past nine years, Lojas Americanas expanded its store network by five times through its organic expansion program and acquisition of BWU, the company that owned the BLOCKBUSTER trademark in the country. In 2009, the Company inaugurated 14 new stores 12 in the Traditional model and two in the Express model and announced its SEMPRE MAIS BRASIL program, which establishes the opening of 400 new stores around the country over the next four years (between 2010 and 2013). The following table shows the profile of the stores opened during the year of 2009: Region Format Number of Sales Area Average stores thousand m² thousand m² As of 12/31/ Southeast Traditional Express Northeast Traditional Express South Traditional Express Norte Tradicional Express Midwest Traditional Express Total Traditional Express Transferring/Remodeling (6) (3.3) As of 12/31/ Expansion Plan for the next four years SEMPRE MAIS BRASIL As mentioned in the topic 80th Anniversary Celebration, for the next four years ( period), we are planning to open 400 new stores around Brazil. Currently, the Company s 476 stores are located in only 150 of the more than 5,500 cities in the country, which demonstrates the opportunity Lojas Americanas has for opening new stores in cities that are located a long way from Brazil s large 17/28

18 urban centers. As illustrated in the following chart, based on economic feasibility studies and analyses conducted internally using the EVA (Economic Value Added) tool, together with socio-economic data (population, income, access to basic services, access to consumer goods, among others), we believe that at this moment the possibility exists that our brick-and-mortar retail stores could be present in another 200 cities, besides the ones in which we already have operations. Cities with LASA stores Cities with opportunity of oppening one store Our stores are located in 22 states around the country, plus the Federal District, with distribution as follows: 66% in the Southeast region; 19% in the South/Midwest regions; and 15% in the North/Northeast regions. Coupled with our confidence in the development of the country, the expansion plan for these new cities could especially benefit the North/Northeast/Midwest regions, as demonstrated in the projection of our openings that follows. Store Distribution by Region Dec/2009 % Openings % Dec/2013* % Southeast % % % Northeast 61 13% 90 22% % North 9 2% 40 10% 49 6% Midwest 38 8% 40 10% 78 9% South 52 11% 30 8% 82 9% TOTAL % % % *Estimates of the number of stores by region by the end of 2009 and As occurred historically, the growth should be in the proportion of 70% Traditional stores (average sales area between 1,300 m 2 and 1,500 m 2 ) and 30% Express stores (average sales area between 300 m 2 and 500 m 2 ). For 2010, we already have inaugurated one store, have 15 store contracts signed, and 25 stores in a final phase of contract, which makes us optimistic we will exceed a total of 60 new stores. The following table shows the estimate of new store openings for the next four years: 18/28

19 Year Number of Stores to to to to 130 We also note that, in order to support the distribution of merchandise for the stores, we are preparing the opening of two new Distribution Centers, to be located in the Midwest and South regions. It is important to mention that the Company s current cash position and the future cash generation, together with the elongation of the debt profile, let us in a comfortable position to make the expected investments, which should be approximately R$ 1.0 billion. Investments (2010 to 2013) - R$MM Openings/Refurbishment 720 Technology/Logistics/Operation 280 Total 1,000 In 2006, a loan for approximately R$ 220 million was approved from the BNDES, earmarked for expansion, refurbishment and standardization of the store network along with technological modernization over the last three years. As we have done in the past, we are presenting a project to the BNDES for our expansion program for the period, which we are calling SEMPRE MAIS BRASIL. Finally, we would like to reinforce that We will continue to pursue our learning path and overcome obstacles, which makes us enthusiastic because it will enable us to achieve new levels of results, always seeking to better meet our customer s needs. 19/28

20 Growth of 49% in consolidated EBITDA and 16% in the gross revenue in 4Q09 B2W COMPANHIA GLOBAL DO VAREJO We are presenting below the highlights of the results of the fourth quarter (4Q09) and year 2009 of our subsidiary B2W - Companhia Global do Varejo (BOVESPA: BTOW3). The financial statements were prepared and are presented in accordance with the norms issued by the Securities Exchange Commission (Known locally as CVM), as well as the Novo Mercado listing rules and include accounting changes introduced by Law 11,638/07. Except when otherwise specified, the analyses refer to the Consolidated results. Gross Revenue: 16% growth in 4Q09 and 14% in 2009 In 4Q09, Gross Revenue reached R$1.506 billion, representing a 16% growth in comparison with 4Q08. In 2009, was reached a growth of 14% in comparison with 2008, reaching R$5.107 billion. Net Revenue: Growth of 31% in 4Q09 and 22% in 2009 Net Revenue increased from R$877 million in 4Q08 to R$1.145 billion in 4Q09, a growth of 31%. In 2009, Net Revenue reached R$3.793 billion, a growth of 22% in comparison with EBITDA: R$174MM in 4Q09 and R$489 in 2009 EBITDA reached R$174 million in 4Q09, representing a 49% growth, with margin of 15.2% of Net Revenue. In 2009, EBITDA reached R$489 million, a growth of 20%, with margin of 12.9% of Net Revenue. Net Income: R$14MM in 4Q09 and R$48MM in 2009 In 4Q09, Net Income reached R$14.1 million versus R$2.9 million in 4Q08, a growth of 386%. In 2009, Net Income reached R$48 million versus R$62 million in Cash Conversion Cycle: reached the best level since 4Q08 In 4Q09, Parent Company s cash conversion cycle was 69 days (excluding tax change effects), an improvement of 1 day versus 4Q08. 1-Click Shopping in Submarino It was launched in jan/10 the 1-Click Shopping, the quickest way to buy in the internet, which allows the customers to register just once their personal data and use it in every purchase made in the website. International expansion of tickets sales in Mexico After a well succeed test in one movie theater in Mexico City, it was initiated the business plan expansion to every Cinemark cinema in the country (more than 30 places). Parent Company Results: Gross Revenue: Reached R$1.399 billion in 4Q09, +18% in relation to 4Q08. In 2009, reached R$4.790 billion, +14% over EBITDA: Reached R$158 million in 4Q09, a variation of 50% over 4Q08, with margin of 14.9% of the NR. In 2009, EBITDA reached R$441 million, +17% over 2008 and margin of 12.4% of the NR. There was a financial restatement of 2008 figures, with non-cash effects, as explained B2W s Earnings Release. 20/28

21 Share of FAI cards (private label and cobranded) surpassed 15% of the Parent Company s Sales over the course of FINANCEIRA AMERICANAS ITAÚ - FAI Financeira Americanas Itaú (FAI) is dedicated to the financing of purchases via private label and co-branded (Visa and Mastercard), the supply of personal credit and other financial products and services (insurance and extended guarantees). It operates through points of sale in the Lojas Americanas stores, through the Internet (Americanas.com and Shoptime) and the Shoptime TV channel. During the second half of 2008, a new strategy was implemented for offering the private label and co-branded credit cards as being the best means of payment in Lojas Americanas stores and Internet operations, as well as slowing down the offer of personal loans. This new way of operating led to a need for investing in the client base (private label and co-branded cards), and in the fourth quarter of 2009, FAI already had issued about 2.6 million cards, of which 2.2 million were private label, 388,000 were co-branded and 64,000 were for personal loans. The share of FAI cards surpassed the level of 15% of the Parent Company s sales over the course of 2009, and FAI s revenues in 4Q09 rose 79% over the same period of the previous year. The receivables portfolio by the end of 2009 was R$ 798 million, representing a 56% increase over December The mix of the current portfolio is composed of 8% personal loans and 92% credit cards, which in the same period of the previous year was 32% personal loans and 68% credit cards. Financeira Americanas Itaú closed 4Q09 with about 2.6 million cards issued and R$ 798 million in volume of receivables. This transformation helped to improve the portfolio s losses index, which went from 7% in 4Q08 to 5% in 4Q09. The reduction in revenues through personal loans was offset by the better performance of the credit card operations. FAI s gross financial and services revenues grew by 33%, going from R$ 68.3 million in 4Q08 to R$ 90.7 million in 4Q09. The current strategy of focusing on consumer products will be maintained and we will continue to offer private label cards and branding of the performed base, besides increasing sales through co-branded cards. Insurance and extended guarantee sales will be intensified, both through the Internet as well as in our brick-and-mortar stores. 21/28

22 Portfolio of Receivables FAI (R$ million) % 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q Private Label + Co Branded Personal Loans Glossary: Revenues: Purchases conducted using Americanas cards, either cash or installments, and personal loans offering. Receivables portfolio: Amounts to receive from sales. Gross financial and services revenues: Revenues from the receivables portfolio stemming from the allocation of interest, and services and insurance tariffs. About Lojas Americanas S.A. Lojas Americanas was founded in 1929, in Niterói, Rio de Janeiro, and is presently in all of the regions of the country (22 states plus the Federal District), with 476 stores 280 in the Traditional format, 192 in the Express format, and 4 in the BLOCKBUSTER format equivalent to 504,000 square meters of sales area. The average sales space of traditional stores is 1,500 square meters, with daily stock replacement and an offer of approximately 60,000 items. The Express model follows the smaller store concept, with an average size of 400 square meters, just-in-time logistics and a selected product range of about 15,000 items, appropriate for each location and client profile of these stores. Lojas Americanas assures its clients competitive prices with respect to its competition and offers quality products in its Home, Leisure, Beauty, Children s, Confectionary and Convenience Foods worlds. Lojas Americanas brick-and-mortar stores are serviced by three distribution centers, located in São Paulo, Rio de Janeiro and Pernambuco. Lojas Americanas shares are listed on the BM&FBOVESPA through ticker symbols LAME3 (common) and LAME4 (preferred). We always want more 22/28

23 ATTACHMENTS Income Statements Consolidated INCOME STATEMENTS PERIODS ENDED ON DECEMBER 31 CONSOLIDATED (R$ MM) 4Q09 4Q08 restatement Var % restatement Gross Sales and Services Revenue 3, , % 10, , % Taxes, returns and discounts on sales (655.9) (730.9) -10.3% (2,257.6) (2,285.2) -1.2% Net Sales and Services Revenue 2, , % 8, , % Cost of goods and services sold (1,780.6) (1,400.3) 27.2% (5,757.5) (4,741.3) 21.4% Gross Profit % 2, , % Gross Margin (% of Net Revenue) 32.6% 34.1% -1.5 pp 30.9% 32.0% -1.1 pp Operating Revenue (expenses) (424.9) (410.7) 3.5% (1,661.5) (1,550.6) 7.2% Sales (349.5) (339.0) 3.1% (1,347.2) (1,217.2) 10.7% General and administrative (27.4) (22.0) 24.5% (130.0) (121.0) 7.4% Depreciation/Amortization (48.0) (49.7) -3.4% (184.3) (212.4) -13.2% Operating Expenses (% of Net Revenue) 16.1% 19.3% -3.2 pp 19.9% 22.2% -2.3 pp Operating Income before financial expenses and equity accounting % % Operating Margin (% of Net Revenue) 16.5% 14.8% +1.7 pp 11.0% 9.8% +1.2 pp Financial Expenses - Net (146.9) (122.1) 20.3% (548.5) (410.8) 33.5% Equity Accounting Other operating Income (expenses)* (77.8) (54.5) 42.8% (103.9) (81.7) 27.2% Profit sharing for employees / minority interest (14.3) (9.4) 52.1% (28.1) (33.7) -16.6% Income Tax and Social Contribution (60.8) (40.2) 51.2% (83.5) (67.5) 23.7% Net Income % % Net Margin (% of Net Revenue) 5.2% 4.1% +1.1 pp 1.8% 1.3% +0.5 pp EBITDA % 1, % EBITDA Margin (% of Net Revenue) 18.3% 17.1% +1.2 pp 13.2% 12.8% +0.4 pp Var % Total shares (thousand) 754, , , ,042 Shares in treasury (thousand) 28,530 28,398 28,530 28,398 Total outstanding shares (thousand) 725, , , ,644 Net income per outstanding share R$ 0.19 R$ 0.12 R$ 0.21 R$ 0.12 * Under the former accounting system, called non-operating income. 23/28

24 Income statements Parent Company INCOME STATEMENTS PERIODS ENDED ON DECEMBER 31 PARENT COMPANY (R$ MM) 4Q09 4Q08 restatement Var % restatement Gross Sales and Services Revenue 1, , % 5, , % Taxes, returns and discounts on sales (304.0) (324.3) -6.3% (969.8) (950.6) 2.0% Net Sales and Services Revenue 1, , % 4, , % Cost of goods and services sold (1,021.1) (849.7) 20.2% (3,218.5) (2,706.4) 18.9% Gross Profit % 1, , % Gross Margin (% of Net Revenue) 33.4% 34.6% -1.2 pp 30.2% 31.2% -1.0 pp Operating Revenue (expenses) (236.3) (221.0) 6.9% (868.0) (807.6) 7.5% Sales (189.1) (174.7) 8.2% (693.5) (637.3) 8.8% General and administrative (11.8) (11.5) 2.6% (53.5) (48.1) 11.2% Depreciation/Amortization (35.4) (34.8) 1.7% (121.0) (122.2) -1.0% Operating Expenses (% of Net Revenue) 15.4% 17.0% -1.6 pp 18.8% 20.5% -1.7 pp Operating Income before financial expenses and equity accounting % % Operating Margin (% of Net Revenue) 18.0% 17.6% pp 11.3% 10.6% +0.7 pp Financial Expenses - Net (63.1) (73.1) -13.7% (297.0) (265.6) 11.8% Equity Accounting (0.4) (3.5) -88.6% % Other operating Income (expenses)* (20.9) (21.1) -0.9% (20.2) (28.8) -29.9% Profit sharing for employees / minority interest (7.4) (7.0) 5.7% (7.4) (7.0) 5.7% Income Tax and Social Contribution (47.5) (35.7) 33.1% (58.1) (38.2) 52.1% Net Income % % Net Margin (% of Net Revenue) 8.9% 6.8% pp 3.3% 2.3% +1.0 pp EBITDA % % EBITDA Margin (% of Net Revenue) 20.3% 20.2% pp 14.0% 13.8% +0.2 pp * Under the former accounting system, called non-operating income. Var % 24/28

25 Balance sheets Consolidated and Parent Company LOJAS AMERICANAS S.A. BALANCE SHEETS Parent Company Consolidated Parent Company Consolidated ON DECEMBER AND In Thousand Reais restatement restatement restatement restatement TOTAL ASSETS CURRENT LIABILITIES CURRENT Cash and banks 74,001 55, , ,690 Suppliers 1,194, ,977 1,701,718 1,515,516 Temporary cash investments 1,137,947 1,025,618 2,067,083 2,172,195 Loans and financing 329, , ,175 1,826,670 Trade accounts receivable 351, , , ,905 Debentures 12,179 87,527 30, ,412 Inventories 772, ,178 1,263,404 1,000,246 Payroll and related charges 23,218 21,861 34,757 34,635 Recoverable taxes 116,539 85, , ,506 Taxes payable 136, , , ,517 Deferred income tax and social contribution 24,706 44,305 68, ,863 Dividends and participations proposed 45,792 37,400 51,121 45,385 Dividends and Interest on own capital receivable 6,403 10, Provisions for contingencies 10,502 17,578 15,300 20,087 Prepaid expenses 12,569 31,419 85, ,944 Other current liabilities 95,686 61, , ,980 Other accounts receivable 83,923 74, , ,271 1,847,830 2,026,343 3,115,660 3,865,202 2,580,241 2,159,254 4,927,916 4,730,620 NON-CURRENT NON-CURRENT Long-Term Assets Long-Term Liabilities: Temporary cash investments - - 5,378 5,846 Loans and advances to subsidiary companies 7,583 2, Loans and advances from subsidiaries 2,567 2, Receivables from stockholders - Stock Option Plan 35,735 81,256 35,735 81,256 Loans and financing 1,515,068 1,072,193 2,225,249 1,344,967 Deferred income tax and social contribution 17,409 6, ,252 88,480 Debentures 366, , , ,888 Escrow deposits 40,521 39,915 62,590 55,443 Taxes payable 47,131 56,254 79,769 77,604 Prepaid expenses ,781 Provision for contingencies 56,731 45,042 73,572 52,336 Recoverable taxes and other accounts receivable 10,068 14,779 10,108 21,140 Allowance for Loss on Investments 16,618 22, , , , ,946 Advance for cession in mining usage rights 26,775 28,305 22,313 23,588 Other accounts payable ,715 14,734 2,031,098 1,594,227 3,145,069 2,243,117 Investments 531, , Property and equipment 395, , , ,451 Intangible 566, , , ,525 MINORITY INTEREST ,139 90,151 Deferred charges 74, , , ,350 STOCKHOLDERS' EQUITY 1,678,803 1,755,738 1,820,068 1,762,272 Capital 242, , , ,718 Capital Reserves 5,303 3,381 5,303 3,381 Revenue reserves 288, , , ,869 Treasury stock (157,793) (155,242) (157,793) (155,242) Equity Valuation Adjustments 1,296 (2,304) 1,296 (2,304) 380, , , ,422 4,259,044 3,914,992 6,747,984 6,492,892 4,259,044 3,914,992 6,747,984 6,492,892 Management s explanatory notes are integral parts of the financial statements. 25/28

26 Cash Flow statements Consolidated and Parent Company LOJAS AMERICANAS S.A. CASH FLOW STATEMENT - INDIRECT METHOD Parent Company Consolidated SEMESTERS ENDED IN DECEMBER In Thousands Reais restatement restatement Cash Flow From Operating Activities Net Income for the period 152,028 89, ,028 89,527 Adjustments to net income: Depreciation and Amortization 137, , , ,389 Write-off of the residual and deferred value of fixed assets 10,491 20,926 11,508 47,886 Equity in subsidiaries and affiliates (11,657) (10,353) 0 0 Income tax and social contribution deferred 4,331 11,873 3,423 (22,200) Interest on credits (1,663) (3,633) (1,663) (3,633) Interest and variations on financing and other debt 234, , , ,615 Provision for contigencies adjustment 16,500 12,400 45,250 14,747 Capital gain from variations in participations 0 (3,852) 0 (3,852) Stock Option Plan 1,922 1,293 1,922 3,021 Allowance for doubtful accounts 636 1,011 92,705 (59,751) Others (1,112) 9,891 (44,650) 22,842 Minority interest ,893 (56,973) Adjusted Net Income 543, , , ,618 Decrease (increase) in Operating Assets: Trade accounts receivable (66,866) (45,932) (21,964) (204,902) Inventories (114,114) (29,089) (254,462) (58,585) Recoverable taxes (25,937) (60,023) (48,634) (97,153) Prepaid expenses (current and non-current) 17,287 (10,400) 62,775 (86,219) Escrow deposits (606) (1,151) (7,147) (5,124) Others accounts receivable (current and non-current) (9,272) (58,248) 18,265 (136,455) (199,508) (204,843) (251,167) (588,438) Increase (decrease) in Operating Liabilities: Suppliers 238,252 94, , ,193 Payroll and related charges 1,357 (5,853) 122 (14,784) Taxes payable (current and non-current) 9,443 (56,239) 11,563 (45,004) Contingencies payments (current and non-current) (17,835) (17,886) (35,048) (19,486) Loans and advances from subsidiaries (5,085) (75,761) 0 0 Advance for cession in mining usage rights 0 30, ,500 Other accounts payable (current and non-current) 34,236 2,766 97,640 5, ,368 (27,865) 255, ,726 Net Cash provided (or used) by Operating Activities 604, , , ,906 Cashs Flows from Investing Activities Temporary cash investments (110,002) (501,033) 110,847 (1,275,026) Investments in subsidiaries (3,812) (70,330) 0 0 Property and equipment (75,082) (152,438) (111,337) (176,547) Intangible (23,819) (111,403) (143,952) (245,656) Deferred charges 0 (75,072) 0 (138,218) Dividends received 10,378 8, Net Cash Flow used by Investing Activities (202,337) (902,266) (144,442) (1,835,447) Cash Flow from Financing Activities Loans and Financing (current and non-current): Borrowings 893,491 1,629,085 1,454,440 9,035,883 Liquidation (1,035,987) (1,368,845) (1,867,740) (8,455,005) (142,496) 260,240 (413,300) 580,878 Debentures (current and non-current) (115,673) 0 (168,326) 364,400 Accounts Recebvable Discounts (102,143) 201,223 (133,077) 428,152 Receivables from Stock Option Plan 16,311 (29,059) 16,311 (29,059) Capital Increase 0 34, ,681 Dividends and participations paid (37,400) (36,687) (45,057) (48,158) Share buy-back (2,551) (25,791) (2,551) (25,791) Net Cash provided (or used) by Financing Activities (383,952) 404,607 (746,000) 1,305,103 Net increase (decrease) in Cash and Cash Equivalents 18,260 (197,179) 29,090 (227,438) Cash and Cash Equivalents at the beginning of the period 55, , , ,128 Cash and Cash Equivalents at the end of the period 74,001 55, , ,690 Net Increase (decrease) in Cash and Cash Equivalents 18,260 (197,179) 29,090 (227,438) The accompanying notes are an integral part of these financial statements 26/28

27 Evolution of the number of stores, associates and sales areas - Lojas Americanas No. of Stores Sales Area Nº of Associates December 31, ,000 m² 13,459 Opened 4 Closed/Transferred (3) June 30, ,000 m² 13,098 Opened 1 Closed/Transferred (2) September 30, ,000 m² 13,151 Opened 9 Closed/Transferred (1) December 31, ,000 m² 13,425 This table contemplates the number of stores, sales areas and number of associates of the Parent Company and BWU. Stores transferred: the product assortment of the stores in the BLOCKBUSTER format were transferred to the nearest Lojas Americanas stores. 27/28

28 CONFERENCE CALL INFORMATION Statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Lojas Americanas, eventually expressed in this report are merely projections and, as such, are based exclusively on the expectations of Lojas Americanas management concerning the future of the business and its continued access to capital to fund the Company s business plan. Such statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and are, therefore, subject to change without prior notice. MSCI Brand logo: The use of Morgan Stanley Capital International Inc. registered trademarks and indices ("MSCI") does not constitute any type of sponsorship, endorsement or promotion on the part of MSCI, its affiliates, its suppliers or other parties involved or related in the compilation, computation or creation of any MSCI index. MSCI s indices are registered trademarks of MSCI or its affiliates and Lojas Americanas S.A. has been granted a license to use these trademarks for given purposes. 28/28