EARNINGS RELEASE 2Q16 e 1S16

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1 EARNINGS RELEASE 2Q16 e 1S16 CONSOLIDATED GROSS REVENUE OF R$ 9.4 BILLION IN 1S16 CONSOLIDATED EBITDA OF R$ 1.1 BILLION, +17.4% Rio de Janeiro, August 11th, 2016 Lojas Americanas S.A. [BOVESPA: LAME3 (common) and LAME4 (preferred)], one of the leading retail chains in Brazil with 1,056 stores and present in all Brazilian states, announces today its results for the 2nd quarter of 2016 (2Q16) and 2nd semester of 2016 (1S16). The accounting information that serves as the basis for the comments that follow are presented in accordance with the international financial reporting standards (IFRS), to the rules issued by the Brazilian Securities Exchange Commission (CVM) and in Reais (R$). The comparisons refer to the 2nd quarter of 2015 (2Q15) and 1st semester of 2015 (1S15). Gross Revenue (R$ MM) 4,844 5,380 5, % 6,681 8,080 9,291 9,400 Gross Profit (R$ MM) and Gross Margin (%NR) OPERATIONAL AND FINANCIAL HIGHLIGHTS Executive Summary 1S16 Comparison to 1S15 Parent Company 1S16 1S15 Var. (%) Financial Highlights (R$ MM) 1S16 1S15 Var. (%) 5, , % Gross Revenues 9, , % 4, , % Net Revenue 7, , % 1, , % Gross Profit 2, , % 34.9% 31.8% +3.1 p.p. Gross Margin (%NR) 29.5% 27.4% +2.1 p.p % Adjusted EBITDA 1, % 18.2% 15.8% +2.4 p.p. Adjusted EBITDA Margin (%NR) 14.2% 11.8% +2.4 p.p % Net Income % 0.6% 0.9% -0.3 p.p. Net Margin (%NR) 0.3% 0.5% -0.2 p.p. Gross Revenue In 1S16, the parent company gross revenue reached R$ 5.3 billion, an increase of 8.5% over 1S15. In the consolidated, the gross revenue reached R$ 9.4 billion, an increase of 1.2% in relation to 1S15; 1,265 1,434 1, % 1,681 2,027 2,211 2, Adjusted EBITDA (R$ MM) and Adjusted EBITDA Margin (%NR) Same Stores Gross Revenue Growth in same stores gross revenue was 6.3% in the first semester of the year; Net Revenue In 1S16, the parent company net revenue totaled R$ 4.6 billion, an increase of 6.3% in relation to 1S15. In the consolidated view, the net revenue reached R$ 7.9 billion; Gross Margin In the parent company, the gross margin was 34.9% of net revenue in 1S16, an increase of 3.1 p.p.. In the consolidated, gross margin was 29.5% of net revenue; % ,120 Adjusted EBITDA In the parent company the Adjusted EBITDA reached R$ million in 1S16, an increase of 22.4% over 1S15 and adjusted EBITDA margin (%NR) was 18.2%, an increase of 2.4 p.p.. The consolidated Adjusted EBITDA totaled R$ 1.1 billion in 1S16 and consolidated Adjusted EBITDA margin (%NR) was 14.2% of net revenue on 1S16; Net Income The consolidated net income reached R$ 26.6 million in 1S Evolution in Number of Stores Expansion 85 years in 5 Somos Mais Brasil : For the period between ( ), we plan to open 800 new stores in Brazil; In 2016, through today, we opened 19 stores and we have more 97 contracted stores or in advanced stages of negotiation; B2W DIGITAL B2W announced 7.2% growth in GMV, reaching R$ 2.5 billion in 1S16. Marketplace continued to grow fast, increasing 152% and reaching a participation of 16% of total GMV. GMV (Gross Merchandise Volume) represents consolidated gross sales and services revenue plus sales placed through B2W Digital s marketplace, after returns, including taxes. Adjusted EBITDA - Operating profit before interest, taxes, depreciation and amortization, other operating income/expenses, equity accounting and minority participation. 1 / 18

2 MESSAGE FROM MANAGEMENT TO OUR CUSTOMERS, SHAREHOLDERS, ASSOCIATES AND SUPPLIERS: The first semester of the year was marked by significant achievements in the face of a challenging macroeconomic environment that demanded a greater rigor in the operation, in costs control and in the management of the cash flow. In this environment, we continue evolving in the main operating variables of the business. In the consolidated results, we achieved a gross revenue of R$ 9.4 billion and an EBITDA growth of 17.4% in the first semester of In the bricks-and-mortar stores, we maintained a solid performance with productivity gains and capture opportunities in the margin. In the first six months of the year, the growth of gross revenue in the concept of "same stores" was 6.3%. Gross revenue reached growth of 8.5% and operational cash flow generation (EBITDA) totaled R$ million, an increase of 22.4%. Lojas Americanas won the first place in the retail category of Época Negócios 360º award and was considered by IstoÉ Dinheiro magazine the most valuable retail brand in Brazil. In addition, we also launched new lines of private label products and has made important commercial events like mother's day, valentine's day and chocolate festival. Based on the semester evaluation it should be noted that for the rest of the year, even in the face of future challenges, we remain committed in pursuing a balance between revenue growth and profitability and to be the best shopping option for customers. THE MANAGEMENT "We Always Want More" COMMENTS ON OPERATING PERFORMANCE EASTER MISMATCH In 2016 the Easter Holiday was on March 27th, while in 2015 it happened on April 5th. Therefore, in 2016 the revenues related to this important event had a bigger impact on the first semester. GROSS MERCHANDISE VOLUME (GMV) GMV (Gross Merchandise Volume) represents consolidated gross sales and services revenue plus the sales placed through B2W Digital s Marketplace and, as consequence, in the consolidated financial statements of Lojas Americanas. In 1S16, consolidated GMV reached R$ 10.1 billion, growth of 5.9% in relation to the R$ 9.5 billion registered in 1S15. GROSS REVENUE In 1S16, parent company gross revenue reached R$ 5.3 billion, an expansion of 8.5% in relation to the 1S15. In the consolidated gross revenue reached R$ 9.4 billion with an expansion of 1.2% when compared to 1S15. In this period, growth in gross revenue in the concept of same stores was 6.3% compared to the first semester of Because of the effect of tax changes that became effective in 2016 the tax and deductions line was impacted, influencing the comparison with the 1S15. These tax changes excessively penalized the analysis of the result. In 1S16, the tax on sales line increased 24.1% in the parent company and 25.3% in the consolidated compared to 1S15. This growth makes unfeasible the direct comparison of gross revenue/net revenue and margins/expenses growth of the periods under review. Therefore, we assume the nominal EBITDA growth as the best value creation measure for the Company. 2 / 18

3 180 0, , , , ,00 800,00 600,00 400,00 200,00-60, 00 55, 00 50, 00 45, 00 40, 00 35, 00 30, 00 25, 00 20, , , , ,0 500,0-78, 0 68, 0 58, 0 48, 0 38, 0 28, 0 18, 0 8,0 Parent Company Gross Revenue (R$ million) Gross Revenue (R$ million) 2,756 3, % 3,947 3,544 4,448 4,929 5,348 4, % 6,681 5,380 5,651 8,080 9,291 9,400 NET REVENUE In 1S16, parent company net revenue reached R$ 4.6 billion, an increase of 6.3% in relation to the 1S15. In the consolidated net revenue reached R$ 7.9 billion with an variation of -2.5% when compared to 1S15. In 1S16, the lower growth of net revenue in comparison with the increase of gross margin is related to the tax changes mentioned in the commentary of gross revenue. Parent Company Net Revenue (R$ million) +12.0% 4,592 4,319 3,855 3,397 3,011 2,669 2,325 Net Revenue (R$ million) +11.0% 8,074 7,876 7,023 4,215 4,690 4,904 5,773 GROSS PROFIT AND GROSS MARGIN In 1S16, the parent company s gross margin was 34.9% of net revenue (NR), an evolution of 3.1 p.p. when compared to the 1S15 margin of 31.8%. In consolidated vision, gross margin in 1S16 was 29.5% of NR. The improvement in gross margin during the semester is reflection of Lojas Americanas organizational effort to combine growth and profitability. Gross margin was favored for the improvement of stores operational efficiency and for evolution of several projects implemented by the Company, which are still maturing, but that already leave us very optimistic with the results achieved until now. Parent Company Gross Profit Gross Profit % 1,375 1,194 1,047 1,604 1, % 2,027 1,434 1,408 1,681 2,211 2, Gross Profit (R$ million) Gross Margin (% NR) Gross Profit (R$ million) Gross Margin (% NR) 3 / 18

4 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES In 1S16, general and administrative expenses totaled R$ million, or 16.8% of NR, in the parent company. In the consolidated view, the sum was R$ 1,205.3 million, or 15.3% of NR. Parent Company Sales, General and Administrative Expenses (%NR) Sales, General and Administrative Expenses (%NR) EBITDA AND EBITDA MARGIN In 1S16, parent company Adjusted EBITDA reached R$ million, an increase of 22.4% in relation to 1S15, a growth of 2.4 p.p. on the margin, that reached 18.2% of NR. In the consolidated view, Adjusted EBITDA reached R$ 1.1 billion in 1S16, an improvement of 17.4% in relation to 1S15 and an Adjusted EBITDA margin of 14.2% of NR, increase of 2.4 p.p.. Parent Company Ajusted EBITDA +21.2% Adj. EBITDA (R$ MM) Adj. EBITDA (% NR) Ajusted EBITDA % , Adj. EBITDA (R$ MM) Adj. EBITDA (% NR) Adjusted EBITDA - Operating profit before interest, taxes, depreciation and amortization, other operating income/expenses, equity accounting, minority participation and statutory participation. EBITDA (CVM 527/12) On October 4 th, 2012, Brazilian Securities Exchange Commission (CVM) enacted Instruction 527/12, which disposes about the voluntary disclosure of non-gaap information, such as EBITDA. The Instruction aims to standardize the disclosure of this data, in order to improve the understanding of this information and making comparable among the publicly listed companies. To keep the consistency and the comparability between previous periods, we present the EBITDA reconciliation. In 1S16, Adjusted EBITDA of the parent company reached R$ million. Excluding other revenues and operational expenses, equity accounting and minority participation, the EBITDA, according to the Instruction CVM 527/12, would be R$ million, representing 15.4% of the NR. In the consolidated view, Adjusted EBITDA reached R$ 1,120.1 million in 1S16. Excluding other revenues and operational expenses, equity accounting and minority participation, the EBITDA, according to the Instruction CVM 527/12, would be R$ 1,079.1 million in 1S16, representing 13.7% of the NR. NET FINANCIAL RESULT Parent company net financial expenses totaled R$ million in 1S16, a variation of +14.0% in relation to the R$ million of net financial expenses registered in 1S15. net financial result was R$ million in the same period of time. The variation in financial expense result is related to the increased rate of the Interbank Deposit Certificate CDI, partially offset by a higher volume of advanced payment to the suppliers in 2Q16. 4 / 18

5 NET RESULT In the 1S16, the consolidated net income reached R$ 26.6 million. The following table shows the main variations from Adjusted EBITDA to net result: Parent Company Reconciliation of the Net Result - R$ MM 1S16 1S15 % 1S16 1S15 % Adjusted EBITDA % 1, % (+) Depreciation / Amortization (158.4) (131.0) 20.9% (300.4) (240.6) 24.9% (+) Net Financial Result (470.4) (412.8) 14.0% (916.4) (725.4) 26.3% (+) Equity Accounting (117.7) (53.1) 121.7% (+) Other Operat. Income (Expenses)* (10.2) (3.6) 183.3% (41.1) (25.4) 61.8% (+) Minority Interest % (+) Income tax and social contribution (50.8) (41.6) 22.1% % (=) Net Result % % * In the old accounting rules, considered as "non-operating income", including expenditure on action plan. Adjusted EBITDA - Operating profit before interest, taxes, depreciation and amortization, other operating income/expenses, equity accounting and minority participation. INDEBTEDNESS Lojas Americanas s consolidated short and long-term loans and debentures at 06/30/2016 totaled R$ 11,031.6 million. If we deduct the cash position of R$ 5,229.7 million (cash + money market investments + accounts receivable from credit and debit cards) from total loans, we reach a net debt position of R$ 5,801.9 million. R$ million Indebtedness 06/30/ /30/ /30/ /30/2015 Short Term Debt , Short Term Debentures Short Term Indebtedness 1, , ,336.4 Long Term Debt 2, , , ,623.6 Receivables Fund (FIDC) Long Term Debentures 3, , , ,013.0 Long Term Indebtedness 5, , , ,418.4 Total Debt (1) 6, , , ,754.8 Cash and banks , Money market investments , , ,908.7 Money market investments (BWU)* Accounts receivable from credit / debit cards 1, , ,313.2 Total Cash (2) 2, , , ,921.3 Net Cash (Debt) (2) - (1) (3,972.4) (3,010.4) (5,801.9) (3,833.5) Net Debt / Adjusted EBITDA LTM Average Maturity of Debt (in days) 901 1, ,034 *Considers financial applications of BWU [NE 12 (a)] Parent Company Adjusted EBITDA - Operating profit before interest, taxes, depreciation and amortization, other operating income/expenses, equity accounting and minority participation. At 06/30/2016, the Company s consolidated net debt was 2.2x LTM accumulated EBITDA. The average debt maturity was 867 days (28 months). With regard to the parent company, net debt was 1.9x LTM accumulated EBITDA. The average debt maturity was 901 days on 06/30/2016 (30 months). 5 / 18

6 As defined in the shareholders notice dated in May 31th 2016, issued by B2W Digital, on June 2016, Lojas Americanas exercised its preferential right to subscribe shares related to the capital increase in proportion to its participation, totaling the amount of 45,766,785 shares subscribed, or R$ million. Furthermore, in July 11, 22 and 27, 2016 the Company subscribed all other leftovers shares not subscribed by other shareholders. After all stages of the capital increase, Lojas Americanas subscribed 69,789,183 shares, totaling an investment of R$ million. Thus, the participation of Lojas Americanas in B2W Digital reached 62.68% in July To face the uncertainties and the volatility of the financial market, Lojas Americanas has the orientation of preserving the cash and prolonging the debt profile. Throughout the last few years, many measures were taken related to this objective, which let us consolidate our plan of long-term growth for the Company. Accounts receivable are composed of receivables from credit cards, net of the discounted value which have immediate liquidity and can be considered as cash. The breakdown of accounts receivable is shown in the following table: R$ million Parent Company Accounts Receivable Conciliation - R$ MM 06/30/ /30/ /30/ /30/2015 Gross credit-cards receivable 1, , ,661.9 Receivable discounts (487.2) (464.5) (1,943.1) (2,160.3) Electronic debits and checks receivables Receivables Fund (FIDC) Accounts Receivable from credit / debit cards 1, , ,313.2 Present-value adjustment (13.0) (6.4) (15.5) (12.1) Allowance for doubtful accounts (0.5) (2.3) (13.9) (31.9) Other accounts receivable Net Accounts Receivable 1, , ,449.8 NO EXPOSURE TO FOREIGN EXCHANGE VARIATIONS The Company continues to reaffirm its commitment to a conservative cash investment policy, demonstrated by the use of hedge instruments in foreign currencies, and derivatives (swaps). The financial liability and the total cash position of the Company are fully protected against any foreign exchange fluctuations through these financial instruments, which offset the foreign exchange risk transforming the cost of debt for currency and local interest rate (as a percentage of CDI*). In the same vein, it is worth remembering that the Company's cash is invested in the largest financial institutions in Brazil. *CDI - Interbank Deposit Certificate: average rate of funding through the interbank market. SALES BY MEANS OF PAYMENT Sales breakdown by means of payment in 1S16 and 1S15 can be observed in the following table: Parent Company Means of Payment 1S16 1S15 Var. Cash 56% 58% -2 p.p. Credit Cards 44% 42% +2 p.p. 6 / 18

7 PARENT COMPANY NET WORKING CAPITAL At 06/30/2016 net working capital was 34 days. Inventory: During the quarter the Company identified strategic procurement opportunities in order to be prepared for the main events of the year. This strategy impacted the inventory line in 06/30/2016. Suppliers: A greater volume of advance payments requested by suppliers impacted the medium term supply line. The seasonal retail and strategic purchases also explain the change in working capital on 06/30/2016. Gross Accounts Receivable: The Company constantly monitors the offers installment and the volume of sales on credit cards. In 1S16, market conditions have increased the share of sales on credit cards in 2 p.p vs. the 1S15. CUSTOMER SERVICE LEVEL Lojas Americanas constantly invests in actions that will improve your management process such as improvements on customer service, quality control of our products and services, suppliers auditing, distribution center operation and computerization of all our internal processes. As a consequence of this effort, the company received many awards in 1S16 which reinforce the value of our brand, its reputation and the compromise with the clients. Among the first awards and recognitions of the year, the highlights were: Época 360º - Época Negócios Lojas Americanas won for the third consecutive time, the 1st place among the retailers. The yearbook is considered the national guide to measure all relevant dimensions for the continued success of organizations. Most Valuable Brands in Brazil - IstoÉ Dinheiro In the ranking of the 50 most valuable brands in Brazil, Lojas Americanas won the 1st place among the retailers and in the 12th place overall; Brazil Reputation Pulse For the second consecutive year, Lojas Americanas was ranked as the retail company with the best reputation, being the 1st retailer on the ranking and 2nd place among all Brazilian companies. BrandZ LATAM In the ranking of the most valuable brands in Latin America - Brazil - Lojas Americanas was in the 1st place between retailers and in the 12th place overall; Socioambiental Chico Mendes We received again the Green Seal in the category "Environmental Responsible Management" of Socioambiental Chico Mendes award that is considered the most significant in the sustainability area throughout Brazil. 7 / 18

8 INVESTMENT AND EXPANSION INVESTMENTS In 1S16, Lojas Americanas parent company invested a total of R$ million, with emphasis on expansion, improvements in the stores and technological upgrades. Investments R$ million % Openings / Improvements % Technology % Operations and Others % 0% Total % Expansion of Store Network In 2016, until now, Lojas Americanas have opened 19 new stores, reaching 1,056 stores in 411 cities in all Brazilian states and in the Federal District. Our commitment to meet our customers consumption needs, exceeding expectations, making dreams come true and helping to save time and money. The following table shows the profile of the stores opened in 1S16: Region Format Number of Stores Sales Area thousand m² Average thousand m² Southeast Northeast South North Midwest TOTAL, As of 12/31/ Traditional Express Traditional Express Traditional Express Traditional Express Traditional Express Traditional Express Refurbishment/Deactivation (2) As of 06/30/ Lojas Americanas reaffirms its compromise in keeping the pace of growth of our business projected by the 85 years in 5 Somos Mais Brasil Program. In 2016, until now, we opened 19 stores and have more than 97 stores with contract signed or in an advanced stage of negotiation. The new expansion plan foresees the opening of two new distribution centers and 800 new stores in Brazil, between 2015 and 2019, always considering our economic viability studies which consider many macroeconomic data points, such as: population growth, per capita income and evolution of the local economy. We are optimistic in keeping our growth trajectory and we will maintain our commitment with the profitability and the usual discipline in the economic viability studies for opening new stores in the next years. To achieve this result, Lojas Americanas counts with its associated execution capability, its experience in negotiating and localization of new points, in the improvement of its logistics system and a strong recruitment program, training and talent retention. 8 / 18

9 PROMOTER OF FINANCIAL PRODUCTS AND SERVICES: +AQUI The +AQUI is responsible for the commercialization of financial products and services (credit cards, insurance, loans and prepaid cards) in Lojas Americanas. The kiosk of +AQUI is located in about 250 stores distributed in all regions of the country, where is offered Lojas Americanas credit card, card issued by Bradescard in a commissioning partnership model. At about 8 months of full operation (assuming that the current level of stores was reached in November 2015) the operation was responsible for more than 400 thousand cards issued with a share of Lojas Americanas card exceeding 30% of sales in credit cards in some stores. These results allow a better understanding and recognition of Lojas Americanas card in all places where we operate. Moreover, +AQUI shows growing synergy with the offer of Insurance and Services, since the stores with the +AQUI operation have conversion rates higher than other stores. The following table details the evolution of the number of cards issued by +AQUI: Total of Issued Cards (thousand) T15 3T15 4T15 1T16 2T16 We are excited about the productivity growth and improvement of +AQUI indicators that can be observed by the rapid increase in the number of new cards emissions, the rapid growth in the share of sales of Lojas Americanas and the average ticket higher than that observed in the Company. The short time of operation and the high demand for credit and insurance products we have noticed leads us to make sure that the current model can be quickly replicated to the entire network of stores, which associated with the expansion of the portfolio of financial products and services will achieve new levels of results. The +AQUI also offers a range of gift cards, launching a new themed card ("You are Special") for birthdays and special moments like Valentine's Day, allowing greater convenience to customers to give a card as gift to others. In addition, the card had a significant increase in the sale of licensed game cards, software and services in partnership with Blackhawk Networks. 9 / 18

10 APPAREL DEPARTMENT In the last months, Lojas Americanas started a renewal process in the clothing category that consists in the recasting of the assortment, approach of strategic suppliers and sales floor remodeling of some of our stores. In order to seek to better meet our customers' needs we want to expand and improve our lines of women, men and children clothing, in order to offer articles with an excellent cost-benefit ratio. The category renewal plan is at an early stage, but the first results make us excited about the opportunities that lie ahead. The efforts of the apparel department combined with the unique advantages of the new Lojas Americanas card, offering special terms of payment and progressive discounts in the category are already surprising customers. SUSTAINABILITY Lojas Americanas supports projects of Social and Environmental Stock Exchange operated by BM&FBOVESPA and Brazil Foundation Institute. In July 2016 the Company selected four social projects, completing the goal of supporting ten projects in the years 2015 and The new projects were selected based on the UN 's Sustainable Development Goals and will benefit about 5,000 people in four states of Brazil. The Company has developed in partnership with Senac and the Rio de Janeiro Educational Secretary (SEEDUC) the Integral Education Program - Double School. This is an initiative dedicated to social investment, which will serve 420 high school students in the period between 2016 and 2018 with professional technical training in logistics in full time period. 10 / 18

11 GENERAL CONSIDERATIONS ABOUT LOJAS AMERICANAS S.A. Lojas Americanas, one of the main retail chains in Brazil, is present all over the national territory through its multichannel chain, which comprises bricks-and-mortar stores, e-commerce, kiosks, telesales, TV channel and catalogues operations. The Company operates with two store formats: Traditional and Express. The first one has an average sales area of 1,200 square meters, a daily fulfillment and an assortment of 60 thousand items while the second format has an average sales area of 400 square meters, just-in-time logistics and an assortment of 15 thousand items, selected according to every location s needs. Lojas Americanas assortment is in continuous evolution, always aiming at exceeding the clients expectations when meeting their needs. Currently, the 1,056 stores in the Traditional format and 358 in the Express format equivalent to a 942 thousand square meter sales area are present in 411 cities of all Brazilian states and are served by four distribution centers, located in Minas Gerais, Pernambuco, São Paulo and Rio de Janeiro. Our stores are distributed according the following way, 55.2% in Southeast region, 19.0% in the South/Midwest and 25.8% in the North/Northeast. Lojas Americanas shares are listed on the BM&FBOVESPA through ticker symbols LAME3 (common) and LAME4 (preferred). For more information of the multichannel structure of the Company, click here. ABOUT B2W DIGITAL B2W is a digital company, leader in Latin America, whose history coincides with the development of e-commerce in Brazil. The Company operates in the following areas: e-commerce through the brands Americanas.com, Submarino, Shoptime and SouBarato; consumer finance platforms (Submarino Finance and Digital Finance); technology platform; logistics platform, distribution and customer service; and Marketplace. With the objective of connecting people, businesses, products and services on a single digital platform, B2W constantly invests in its strategy of being closer to the customer, offering the best shopping experience, attracting the best talent, and creating barriers to entry. As a result of these developments, the Company continues to gain market share, year by year. Lojas Americanas participation on B2W Digital was 55.61% in June The shares of B2W COMPANHIA DIGITAL are listed in NOVO MERCADO of BM&FBOVESPA over the ticker BTOW3 (common). For further access of the financial information of B2W, click here. CORPORATE GOVERNANCE Since 1940, Lojas Americanas S.A. has been listed on the Brazilian Stock Exchange (BM&FBOVESPA). The Company has a shareholder base composed of common shares (LAME3) and preferred shares (LAME4). Lojas Americanas has a Board of Directors consisting of seven members five appointed by the controllers and two appointed by the Board of Directors. Lojas Americanas also has a Fiscal Council formed by three members, two being indicated by the controllers and one indicated by the minority shareholders. To access the minutes of the board of directors, click here. We Always Want More 11 / 18

12 APPENDIX I CONSOLIDATED INCOME STATEMENT Lojas Americanas S.A. Income Statement Quarter ended in June 30 Period ended in June 30 (in million of Brazilian reais) 2Q16 2Q15 Variation 1S16 1S15 Variation Gross Merchandise Volume (GMV) 5, , % 10, , % Gross Sales and Services Revenue 4, , % 9, , % Taxes on sales and services (728.6) (600.5) 21.3% (1,524.1) (1,216.5) 25.3% Net Sales and Services Revenue 3, , % 7, , % Cost of goods and services sold (2,708.4) (2,911.8) -7.0% (5,550.7) (5,863.6) -5.3% Gross Profit 1, , % 2, , % Gross Margin (% NR) 31.3% 26.8% +4,5 p.p. 29.5% 27.4% +2.1 p.p. Operating Revenue (Expenses) (775.0) (702.0) 10.4% (1,505.7) (1,497.2) 0.6% Selling expenses (586.7) (524.8) 11.8% (1,125.0) (1,156.1) -2.7% General and administrative expenses (37.0) (46.7) -20.8% (80.3) (100.5) -20.1% Depreciation and amortization (151.3) (130.5) 15.9% (300.4) (240.6) 24.9% Operating Income before Net Financial Result and Equity Accounting % % Net Financial Result (438.3) (384.4) 14.0% (916.4) (725.4) 26.3% Other operating income (expenses)* (25.1) (16.4) 53.0% (41.1) (25.4) 61.8% Minority interest % % Income tax and social contribution % % Net Income of the Period % % Net Margin (% NR) 1.3% 0.4% +0.9 p.p. 0.3% 0.5% -0.2 p.p. Adjusted EBITDA % 1, % Adjusted EBITDA Margin (% NR) 15.5% 12.5% +3,0 p.p. 14.2% 11.8% +2.4 p.p. *Under the old accounting norm, called "non-operational result" Adjusted EBITDA - Operating profit before interest, taxes, depreciation and amortization, other operating income/expenses, equity accounting and minority participation. 12 / 18

13 APPENDIX II PARENT COMPANY INCOME STATEMENT Lojas Americanas S.A. Income Statement Parent Company Quarter ended in June 30 Parent Company Period ended in June 30 (in million of Brazilian reais) 2Q16 2Q15 Variation 1S16 1S15 Variation Gross Merchandise Volume (GMV) Gross Sales and Services Revenue 2, , % 5, , % Taxes on sales and services (352.2) (310.2) 13.5% (756.1) (609.4) 24.1% Net Sales and Services Revenue 2, , % 4, , % Cost of goods and services sold (1,387.3) (1,516.3) -8.5% (2,987.9) (2,944.4) 1.5% Gross Profit % 1, , % Gross Margin (% NR) 37.5% 31.7% +5,8 p.p. 34.9% 31.8% +3,1 p.p. Operating Revenue (Expenses) (463.9) (418.1) 11.0% (928.3) (824.4) 12.6% Selling expenses (359.6) (330.9) 8.7% (727.0) (654.7) 11.0% General and administrative expenses (21.4) (19.0) 12.6% (42.9) (38.7) 10.9% Depreciation and amortization (82.9) (68.2) 21.6% (158.4) (131.0) 20.9% Operating Income before Net Financial Result and Equity Accounting % % Net Financial Result (226.3) (211.4) 7.0% (470.4) (412.8) 14.0% Equity accounting (55.9) (33.4) 67.4% (117.7) (53.1) 121.7% Other operating income (expenses)* (5.1) (2.5) 104.0% (10.2) (3.6) 183.3% Income tax and social contribution (31.9) (21.6) 47.7% (50.8) (41.6) 22.1% Net Income of the Period % % Net Margin (% NR) 2.3% 0.8% +1.5 p.p. 0.6% 0.9% -0.3 p.p. Adjusted EBITDA % % Adjusted EBITDA Margin (% NR) 20.4% 16.0% +4,4 p.p. 18.2% 15.8% +2,4 p.p. *Under the old accounting norm, called "non-operational result" Adjusted EBITDA - Operating profit before interest, taxes, depreciation and amortization, other operating income/expenses, equity accounting and minority participation. 13 / 18

14 APPENDIX III BALANCE SHEET Lojas Americanas S.A. Balance Sheet Parent Company (In Million Reais) 06/30/ /31/ /30/ /31/2015 ASSETS CURRENT ASSETS Cash and banks , ,326.1 Marketable securities , , ,526.2 Clients accounts receivable 1, , , ,139.8 Inventories 2, , , ,445.6 Recoverable taxes Dividends receivable Prepaid expenses Other accounts receivable Total Current Assets 5, , , ,281.1 NON-CURRENT ASSETS Marketable securities Loans e advances to subsidiaries companies Receivables from stockholders - Stock Option Plan Deferred income tax and social contribution Escrow deposits Recoverable taxes , ,223.1 Other non-current Investments 2, , Property, plant and equipment 2, , , ,716.8 Intangible assets , ,418.8 Total Non-Current Assets 5, , , ,247.1 TOTAL ASSETS 11, , , ,528.2 LIABILITIES AND SHAREHOLDER S EQUITY CURRENT LIABILITIES Suppliers 2, , , ,316.5 Loans and financing , Debentures Payroll and related charges Taxes payable Income tax and currents social contribution Dividends and participations proposed Provisions for contingencies Other accounts payable Liabilities associated with assets classified as held for sale Total Current Liabilities 3, , , ,618.1 NON-CURRENT LIABILITIES Long term liabilities: Loans e advances to subsidiaries companies Loans and financing 2, , , ,467.7 Debentures 3, , , ,073.8 Taxes payable Income tax and deferred social contribution Allowance for contingencies Allowance for loss on investiments Advance for cession in mining usage rights Advance for cession in mining usage rights Total Non-Current Liabilities 6, , , ,966.5 SHAREHOLDER'S EQUITY Social capital 1, , Capital reserves Goodwill on capital transactions (12.9) (12.9) (12.9) (12.9) Profit reserves , ,005.7 Treasury shares (1.5) (250.9) (1.5) (250.9) Comprehensive result Profit/ loss for the period Additional distributable dividends Minority interest - - 1, ,201.3 Total Shareholders' Equity 1, , , ,943.6 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 11, , , ,528.2 The accompanying notes are an integral part of these financial statements 14 / 18

15 APPENDIX IV CASH FLOW STATEMENT Lojas Americanas S.A. CASH FLOW STATEMENT - INDIRECT METHOD Parent Company (In Million of Brazilian Reais) 06/30/ /30/ /30/ /30/2015 Cash Flow from Operating Activities Net Income for the Period: Adjustments to Net Income: Depreciation and amortization Residual and deferred value of fixed assets write-off Equity accounting Loss on the achievable value Income tax and social contribution current Income tax and social contribution referred (125.7) (66.6) Interest on credits (15.5) (13.3) (15.5) (13.3) Interest and variations financing and other debits Adjustment in provision for contingencies Stock option plan Allowance for doubtfull accounts (1.3) 0.2 (9.7) 8.1 Others (2.6) 23.2 (5.3) 36.3 Minority interest - - (105.9) (58.8) Adjusted Net Income Decrease (Increase) in Operating Assets: Trade accounts receivable Inventories (76.5) (198.3) (90.2) (50.4) Recoverable taxes (96.6) (34.8) (314.6) (193.2) Prepaid expenses (4.0) (15.2) 42.9 (21.6) Escrow deposits (6.1) (1.9) (4.8) 0.9 Other accounts receivable (76.5) (73.2) (138.7) (98.6) Decrease (Increase) in Operating Liabilities: (28.9) (96.8) (5.8) Suppliers (1,071.0) (257.4) (1,743.0) (1,089.5) Payroll and related charges (2.0) (5.3) (5.9) 6.1 Taxes payable (52.3) (27.8) (83.0) (15.1) Current income tax and social contribution (78.1) (105.9) (92.6) (129.7) Contingencies payments (24.0) (31.2) (24.0) (31.2) Loans and advances from subsidiaries (14.0) (23.7) - - Interest settlement on loans and debentures (399.3) (323.7) (641.1) (445.8) Other accounts payable (79.3) (55.8) (216.9) (84.1) (1,720.0) (830.8) (2,806.5) (1,789.3) Net Cash Provided (or Used) by Operating Activities (930.6) (248.0) (1,844.1) (842.8) Cash Flow from Investing Activities Marketable securities 1, , Investiments on subsidiaries (457.7) (14.7) - - Plant, property and equipment (183.7) (277.1) (201.4) (329.4) Intangible (41.0) (63.7) (258.5) (328.4) Dividends received Alienation of indirect controled companies Net Cash Provided (or Used) by Invest Activities , Cash Flow from Financing Activities Loans e financing ( current and non-current): Borrowings Liquidations (367.2) (251.7) (389.1) (250.0) 79.3 (170.4) Debentures (current and non-current) Borrowings Liquidations Receivables from Stock Option Plan Goodwill of the subsidiaries shares subscription - (9.1) - (9.1) Capital Increase Capital Increase and/or variation of minority interest Interest on equity and dividends paid (101.9) (133.1) (101.9) (133.1) Share buy-back (14.0) (75.0) (14.0) (75.0) Net Cash Provided (or Used) by Financing Activities (20.8) (358.6) Net Increase (Decrease) in cash (242.2) (104.3) (315.0) (252.4) Cash at the begining of period , Cash at the end of period , Net Increase (Decrease) in cash (242.2) (104.3) (315.0) (252.4) The accompanying notes are an integral part of these financial statements 15 / 18

16 APPENDIX V EFFECTS IN THE CONSOLIDATION OF B2W DIGITAL S TRANSPORTATION Effects in the consolidation of B2W Digital s transportation subsidiaries Click-Rodo and Direct (subsidiaries of B2W Digital) provide merchandise distribution services to B2W Digital, generating an elimination effect in consolidated gross revenue and selling, general and administrative expenses (distribution expenses), according to the present accounting rules. The consolidated gross profit is reduced on the same proportion to the positive effect observed in the selling, general and administrative expenses, but with no effect on Adjusted EBITDA and Adjusted EBITDA Margin. Lojas Americanas S.A. Income Statement Quarter ended in June 30 Period ended in June 30 (in million of Brazilian reais) 2Q16 2Q15 Variation 1S16 1S15 Variation Gross Merchandise Volume (GMV) 5, , % 10, , % Gross Sales and Services Revenue 4, , % 9, , % Taxes on sales and services (728.6) (600.5) 21.3% (1,524.1) (1,216.5) 25.3% Net Sales and Services Revenue 3, , % 7, , % Cost of goods and services sold (2,645.9) (2,804.1) -5.6% (5,407.8) (5,729.3) -5.6% Gross Profit 1, , % 2, , % Gross Margin (% NR) 32.9% 29.5% +3,4 p.p. 31.3% 29.0% +2,3 p.p. Operating Revenue (Expenses) (837.5) (809.7) 3.4% (1,648.6) (1,631.5) 1.0% Selling expenses (649.2) (632.5) 2.6% (1,267.9) (1,290.4) -1.7% General and administrative expenses (37.0) (46.7) -20.8% (80.3) (100.5) -20.1% Depreciation and amortization (151.3) (130.5) 15.9% (300.4) (240.6) 24.9% Operating Income before Net Financial Result and Equity Accounting % % Net Financial Result (438.3) (384.4) 14.0% (916.4) (725.4) 26.3% Other operating income (expenses)* (25.1) (16.4) 53.0% (41.1) (25.4) 61.8% Minority interest % % Income tax and social contribution % % Net Income of the Period % % Net Margin (% NR) 1.3% 0.4% +0,9 p.p. 0.3% 0.5% -0,2 p.p. Adjusted EBITDA % 1, % Adjusted EBITDA Margin (% NR) 15.5% 12.5% +3,0 p.p. 14.2% 11.8% +2,4 p.p. 16 / 18

17 APPENDEX V NUMBER OF STORES EVOLUTION Number of Stores Sales Area Number of Associates 06/30/ thousand m² 19,727 Opened 23 Transfered/Deactivated -2 09/30/2015 Opened 53 Transfered/Deactivated - 12/31/2015 Evolution of the number of stores, associates and sales area - Lojas Americanas Opened 5 Transfered/Deactivated thousand m² 19,893 1, thousand m² 20,715 03/31/2016 1, thousand m² 20,480 Opened 10 Transfered/Deactivated -2 06/30/2016 1, thousand m² 19, / 18

18 EARNINGS RESULTS CONFERENCE CALL EARNINGS RELEASE 2Q16 e 1S16 EBITDA (CVM 527/12) Net income of the period plus income taxes, net financial expenses of financial revenues and depreciation, amortization and depletion. Adjusted EBITDA (Operating profit before interest, taxes, depreciation and amortization, other operating income/expenses, equity accounting, minority participation, statutory participation and discontinued operations) is presented as additional information because we believe it represents an important indicator of our operating performance, besides being useful for keeping the comparability with previous reported results. 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. 18 / 18