Earnings Release 3rd Quarter 2009

Transcription

1 Share Price: (11/13/2009) ALPA3 - R$ ALPA4 - R$ Market Capitalization: R$ 1,5 billion Teleconference (Portuguese): November 17 th :00p.m. (BR) Phone: (5511) Password: Alpargatas Slides: APIMEC meeting December, 2nd :00p.m. (BR) Centro Empresarial Camargo Corrêa Av. Juscelino Kubitschek, 1867 RSVP: (5511) apimecsp@apimecsp.com.br São Paulo, november 13th, Alpargatas (BOVESPA - Nível 1: ALPA3 and ALPA4), today released its 3 rd quarter 2009 (3Q9) results and the accrued in the first nine months of the year. This report contains Alpargatas performance and that of its controlled companies in 3Q9, or simply quarter. The variations mentioned herein refer to the second quarter 2009 (2Q9) and third quarter 2008 (2Q8). To maintain the comparability, the 3Q8 financial statements include 100% of Alpargatas Argentina s results. 1. Introduction Alpargatas third quarter performance is the result of the company s ongoing efforts to achieve excellence in managing the business. We improved on our second quarter sales volumes and revenues through continuous innovation in our products, in association with strong brands. We have maintained austerity in managing costs and expenditures, with measures that have driven profitability. We have accelerated the cash conversion cycle by controlling our current accounts, resulting in increased cash generation. We have reduced indebtedness, improving our overall financial position. Together, these measures improved Alpargatas consolidated performance. From the second to the third quarter of 2009, net revenues grew 16.4%; gross margin increased by 7.7 percent, reaching 45.7%, and EBITDA increased 153.0%, with a margin of 19.2%. We ended the first nine months of the year as a more solidly based company, better positioned to take advantage of the markets in which we operate as a result of the expansion of the global economy and the sporting events scheduled for the next decade. Highlights Sales Volume (thousands of pairs of shoes) 3Q8 2Q9 3Q9 Var % 3Q8 Var % 2Q9 Consolidated 56,482 40,732 58, % 44.5% Domestic operations 53,787 37,200 55, % 49.1% International operations 2,696 3,532 3, % -4.1% Contacts: José Roberto Lettiere IR Director José Sálvio Moraes IR Manager Fernando Senna IR Analyst Phone (5511) ri@alpargatas.com.br Millions of R$ (International op. - BR GAAP ) 3Q8 2Q9 3Q9 Var % 3Q8 Var % 2Q9 Net revenue % 16.4% Domestic operations % 29.3% International operations % -17.2% Gross margin 42.9% 38.0% 45.7% 2.8 pp 7.7 pp Domestic operations 46.1% 41.3% 49.4% 3.3 pp 8.1 p.p. International operations 28.7% 29.4% 30.4% 1.7 pp 1.0 pp EBITDA % 153.0% Net result 44.3 (1.3) % - Cash flow % -5.4% Debt % -19.3% Net debt (112.9) (100.1) (43.7) -61.3% -56.4% 1

2 1. DOMESTIC OPERATIONS Volume de vendas Domestic operations Sandals (millions of pairs) Earnings Release 3rd Quarter Q09 50,4 34,3 52,5 Sports footwear (000 s of pairs) Industrial textiles (000 s of m 2 ) ,2% 53,1% -12,6% 1,5% -10,8% 28,8% Sandals Sandals sales volume increased 53.1% compared with the second quarter 2009 (and 4.2% against 3Q08), driven by the success of the new Havaianas collection. The models reached the stores in July and high consumer acceptance led to a growth in market share. Sports footwear The 1.5% increase compared with the second quarter volume reflects the recovery in sales in the sports footwear segment. There was a reduction in volume compared with the 3Q08 due to focus on marketing the premium footwear brands Topper and Mizuno, whose higher added value boosted revenues in the sporting goods business. Industrial textiles The transportation and agribusiness sectors showed signs of recovery during the quarter. This, together with the strong performance in the architecture segment, was reflected in the industrial textiles business, which had its best results so far this year. The number of m 2 commercialized grew 28.8% compared with the 2Q09. Net revenues Domestic operations 3Q09 Net revenues R$ million 423,2 328,3 424,4 0,3% 29,3% Net revenues from domestic operations totaled R$ million, 29.3% up on 2Q09. This performance caps a critical first semester for footwear consumption, reinforcing projections of continued revenue growth in the fourth quarter and in The higher sales volumes in sandals, sports footwear and industrial textiles, allied with price increases, were the main drivers of revenue growth in the quarter. This was reinforced by retail performance and continued expansion, with the opening of new Havaianas franchises. DOMESTIC OPERATIONS Net revenue per business 24% 9% 5% 62% Sandals Sporting goods Retail Industrial textiles 2

3 Profit and gross margin Domestic operations 3Q09 Gross profit R$ million 195,3 135,7 209,7 7,4% 54,5% Gross margin 46,1% 41,3% 49,4% 3,3 pp 8,1 pp Domestic operations showed a significant increasee in gross profit during the quarter. In comparison with 2Q09, gross profit increased by 54.5% and gross margin by 8.1 percentage points. This growth was due to the dilution of fixed costs resulting from higher sales and greater productivity in the manufacture of sandals and sports footwear, with a ten percentage point increase in manufacturing efficiency (standard hours x hours spent in production). In the comparison with 3Q08, the variations in profit and gross margin were also positive (7.4% and 3.3% respectively), mainly as a result of the 20% average reduction in the cost of the company s principal raw materials, most notably rubber. EBITDA Domestic operations EBITDA R$ million 3Q09 90,2 36,4 103,9 15,2% 185,4% EBITDA Margin 21,3% 11,1% 24,5% 3,2 pp 13,4 pp Ebitda 2Q09 Volume / Price / Restructuring and Gross Margin Productivity Gains Non-recurring tax recovery Others Ebitda 3Q09 Os fatores mais relevantes que explicam a variação do EBITDA das operações nacionais, em relação ao 2T9, são: Ganho de R$ 76,2 milhões em razão dos aumentos do volume de vendas, do preço médio e da margem bruta. Economia de R$ 11,5 milhões decorrente de ganhos com reestruturação e com a produtividade do SG&A (despesas operacionais). Recuperação não recorrente de impostoss (PIS/Cofins) de R$ 13,3 milhões, contabilizado no 2T9. The most relevant factors explaining the EBITDA variation in domestic operations compared with 2Q09 are: A R$ 76.2 million gain due to increases in sales volume, average prices and gross margin. Savings of R$ 11.5 million from restructuring and reduction in operating expenses. A non-recurring R$ 13.3 million tax recovery (PIS/Cofins) in 2Q09. The main events for the business in Brazil were: Sandals Launch of the 2009/2010 Havaianas collection, most notably: 3

4 Earnings Release 3rd Quarter 2009 Havaianas Top Wash produced with Havaianas Brasil residues, the sandal is a concrete demonstration of Alpargatas concern with the sustainability of its business. Havaianas IPÊ the innovations in the line generated a tenfold increase in sales compared with the last collection, bolstering the IPÊ Institute, dedicated to the preservation of Brazil s flora and fauna. Launch of the Dupé 2009/2010 collection with 30 models; reformulation of the brand s website and launch of an advertising campaign on the major TV channels in the Northeast of the country. Participation of Havaianas and Dupé in Francal, an important footwear fair held in São Paulo. Sporting goods Topper Outstanding sales of the The One Professional football boot. The model is used by a number of professionals playing in the Brazilian special soccer series. Launch of clothing line with new materials and designs for shirts, shorts and pants. New running and tennis footwear aligned with the strategy to position the Topper brand in a number of different sports categories and in leading sporting goods distribution channels. Mizuno Realization of the second stage of the Mizuno 10 miles competition in São Paulo. The race is part of the Mizuno calender, which includes races in Rio de Janeiro, Belo Horizonte and Brasília. Participation in the fourth edition of the São Paulo Running Show, the most important street racing and triathlon event in the country. Retail A 158% increase in the number of sales outlets in comparison with 3Q08. Launch of the Timberland Spring/Summer collection, the highlights being the Canvas and Leather lines, aimed at increasing share for the brand among the youth public. 2. INTERNATIONAL OPERATIONS The international operations are made up of the Alpargatas USA, Alpargatas Europe and Alpargatas Argentina businesses. On September 30th 2009, the breakdown of net revenues from the international operations was: INTERNATIONAL OPERATIONS Breakdown of net revenues 84% 16% Alpargatas USA & Alpargatas Europe Alpargatas Argentina Alpargatas Argentina Alpargatas Argentina Footwear (000 s of pairs) Textiles (000 s of m 2 ) 3Q ,7% 30,0% 24,4% 32,9% Alpargatas Argentina s footwear sales topped threee million pairs in the quarter, 30% up on 2Q09, and 18.7% up on 3Q08. The strong performance is the result of the new Topper launch in the country. The El Corazón Manda campaign was launched in July, reinforcing the brand s irreverence and 4

5 drive, a positioning aligned with the Brazilian campaign. In Argentina, Topper is the market leader (with categories as well as the casual segment. a 32% share) present in diverse sports Sales revenues Alpargatas Argentina 3Q09 Net revenues R$ million 93,5 102,6 95,9 2,5% -6,5% Net revenues AR$ million 170,5 184,2 197,2 15,6% 7,0% During the quarter, the growth in footwear volume resulted in a 2.5% increase in net sales revenues for Alpargatas Argentina, totaling R$ 95.9 million. Compared with the 2Q09, revenues in reais were reduced due to the devaluation of Argentine peso against the real in 3Q09. In Argentinean pesos, net revenues grew 15.6% from 3Q08 to 3Q09, and 7.0% from 2Q09 to 3Q09. The increases in Argentinean currency were attributable to higher footwear prices and strong performance in the retail business. Gross profit Alpargatas Argentina 3Q09 Gross profit R$ million 26,2 27,6 29,0 10,7% 5,5% Gross margin in reais 28,0% 26,9% 30,2% 2,2 pp 3,3 pp Gross profit AR$ million 47,7 49,5 59,4 24,5% 20,0% Gross margin in pesos 28,0% 26,9% 30,2% 2,2 pp 3,3 pp The increase in profit and gross margin during the quarter was due to sales growth, the dilution of fixed costs and increased productivity in the factories in Argentina. EBITDA Alpargatas Argentina 3Q09 EBITDA R$ million 10,7 11,9 12,6 17,8% 5,9% EBITDA margin in reais 11,4% 11,6% 13,1% 1,7 pp 1,5 pp EBITDA AR$ million 19,5 21,5 25,9 32,8% 20,4% EBITDA margin in pesos 11,4% 11,7% 13,1% 1,7 pp 1,4 pp Ebitda 2Q09 Volume / Price / Restructuring Gross Margin and strategic investments Others Operating Ebitda Exchange variation Ebitda 3Q09 5

6 The main factors behind Alpargatas Argentina s variation in EBITDA compared with 2Q09 are: A R$ 5.4 million gain from volume/price/gross margin resulting from sales growth, cost dilution and manufacturing productivity. Restructuring costs and strategic investments were R$ 2.9 million up on the 2Q09, mainly due to increased spending on advertising and promoting the new Topper brand. A R$ 1.6 million exchange loss due to the appreciation of the real against the Argentinean peso. Alpargatas USA and Alpargatas Europe Alpargatas USA and Alpargatas Europe 3Q09 Variações Sandals (000 s of pairs) ,7% -68,4% The volume of sandals commercialized in the USA and Europe reached 386,800 pairs, an increase of 131.7% compared with 3Q08. The volume increase for the calendar year was 21.5%. This strong result is due to the success of the communication campaigns, increased consumer awareness of the brand and the expansion of the number of sales outlets. The 68.4% reduction in volume compared with 2Q09 is due to seasonal factors. Sandal sales are stronger in the spring and summer in the northern hemisphere and are concentrated in the second quarter of the year. To minimize the effect of seasonal variations in sales, we are working on Havianas line extensions to develop products for year round consumption. Sales revenues Alpargatas USA and Alpargatas Europe 3Q09 Net revenues R$ million 2,4 23,3 8,2 241,7% -64,8% The strategy of substituting intermediate distribution channels with our own operations has contributed to an increase in the average price of sandals and in revenues. Alpargatas Europe operates directly in the Spanish, English, French, Italian and Portuguese markets, through more than 3,700 sales outlets. The same is true for Alpargatas USA, which sells directly to large American customers, with the number of sales outlets totaling around 3 thousand. Increases in volume and average price ensured higher sales revenues. Net revenues for the subsidiaries increased 241.7% compared with the 3Q08, totaling R$ 8.2 million; the increase compared with the first three quarters of 2008 was 191.4%. The reduction in volume against 2Q09 was the result of seasonal factors. Gross profit Alpargatas USA and Alpargatas Europe 3Q09 Gross profit R$ million 1,3 9,5 2,7 107,7% -71,6% Gross margin 54,2% 40,8% 32,9% - 21,2 pp -7,8 pp Gross profit in the subsidiaries grew 107.7% in comparison with 3Q08 as a result of higher revenues. For the nine months of 2009, gross profit increased R$ 16.7 million compared with same period last year. In the comparison with 2Q09, profits and gross margin were lower due to the effect of seasonal factors. EBITDA Operations that are maturing or growing require strategic investments to expand and consolidate the Havaianas brand in the target market. These expenditures are directed at communication and distribution, as well as administrative and commercial personnel. These strategic investments explain why the subsidiaries EBITDA is still negative. 6

7 The main events promoted by the subsidiaries were: Earnings Release 3rd Quarter 2009 Alpargatas USA Customization of Havaianas at the White Party, in Beverly Hills, Los Angeles, an annual event attended by opinion leaders in the North American market. Alpargatas Europe Display of Havaianas sandals customized by personalities in the windows of Selfridges department store in London. The customized sandals were auctioned, with the proceeds going to CLIC Sargent, a London charity for children suffering from cancer. Participation in the Kleine Fabriek, the main Dutch fashion fair, with a stand and a showroom for the new collection. 4. CONSOLIDATED RESULTS FOR DOMESTIC AND INTERNATIONAL OPERATIONS (2008 figures include Alpargatas Argentina on pro forma basis) Consolidated results 3Q09 Sandals (millions of pairs) 50,6 35,5 52,9 4,6% 48,9% Sports footwear (000 s of pairs) ) ,9% 14,2% Textiles (000 s of m 2 ) ,5% 31,1% Consolidated volumes showed a significant increase compared with 2Q09 and 3Q08 due to sales growth in Brazil, Argentina, the United States and Europe. New models of sandals, the increase in the number of overseas sales outlets and the success of the Topper relaunch in Brazil and Argentina explain the strong sales performance in the period. Sales revenues Consolidated results Net revenues R$ million 3Q09 519,1 454,2 528,6 1,8% 16,4% The growth in net revenues in the domestic operations, in conjunction with increased revenues in Alpargatas Argentina and the US and European subsidiaries resulted in a 16.4% increase in consolidated net revenues compared with 2Q09 and a 1.8% increase compared with 3Q08. In the first nine months of the year, revenues were 3.5% higher than the same period of In 3Q09, the real appreciated strongly against the currencies in which the company receives its international revenues. On 30/9/2009, the domestic operations accounted for 76% of Alpargatas consolidated net revenues and the international operations, 24%. 10% 31% Consolidated Results Breakdown of net sales 8% 51% Sandáls Sporting Goods Textiles Retail Gross profit 7

8 Consolidated results Gross profit R$ million Gross Margin 3Q09 222,8 172,7 241,4 42,9% 38,0% 45,7% 8,3% 39,8% 2,8 pp 7,7 pp The increase in gross profit in the quarter is due principally to the increase in profit and gross margin from domestic operations and Alpargatas Argentina. The dilution of fixed costs and the increase in manufacturing productivity led to a 39.8% increase in consolidated gross profit compared with the 2Q09 and a 8.3% increase compared with 3Q08. In consequence, the consolidated gross margin grew 7.7% and 2.8% compared with 2Q09 and 3Q08, respectively. EBITDA Consolidated results 3Q09 EBITDA R$ million 87,4 40,2 101,7 16,4% 153,0% EBITDA Margin 16,8% 8,9% 19,2% 2,4 pp 10,4 pp Ebitda 2Q09 Volume / Price Restructuring and Productivity Gains Non-recurring tax recovery Others Operating Ebitda Exchange variation Ebitda 3Q09 The most relevant factors explaining the variation in consolidated EBITDA compared with 2Q09 are: A R$ 69.1 gain in volume/price/gross margin, mainly from domestic operations. Savings of R$ 14.0 million from restructuring and reduced operating expenditures. Non-recurring tax recovery (PIS/Cofins) of R$ 13.3 million in 2Q09. Net profit Consolidated results Net profit R$ million 3Q09 44,3-1,3 53,5 20,8% - Net margin 8,5% - 10,1% 1,6 pp - 8

9 Net profit 2Q09 Ebitda Financial income Return of investments in subsidiaries Income taxes IRRF/CSLL Others Net profit 3Q09 Alpargatas excellent performance in the quarter, with an increase in revenues and profitability, was reflected in the company s net profit, which grew by R$ 54.8 million from 2Q09 to 3Q09, corresponding to a 20.8% increase compared with 3Q08. The main reasons for this increase in consolidated net profit compared with 2Q09 are: A R$ 61.5 million increase in EBITDA. A positive R$ 6.0 million variation in the company s equity investment in the Tavex Corporation. A R$ 19.7 million increase in corporation tax (IRRF/CSLL) due to the profits generated in the quarter. Cash flow On September 30, 2009, Alpargatas had a cash balance of R$ million, R$ 76.2 million more than on December 31, The acceleration of the cash conversion cycle, the result of careful current account management, is the main explanation for the growth in cash generation. The largest inflow in the period was from EBITDA, which reached R$ million, due to solid operating performance, particularly during the third quarter of the year. Working cash productivity generated a gain of R$ 1.1 million and investments in permanent assets totaled R$ 39.6 million. Debt amortization and shareholder remuneration constituted the main cash disbursements, totaling R$ 75.4 million. Cash balance on December 31st, 2008 EBITDA Working capital investment Fixed Operational asset sub-total investment Exchange variation Financial result Payment of income tax (IR/CSLL) Debt amortization (net of loans) Sub-total Shareholder remuneration Cash balance on September 30th,

10 Indebtedness On September 30, 2009, consolidated financial indebtedness stood at R$ million, of which R$ million was accounted for by São Paulo Alpargatas and R$ 44.9 million by Alpargatas Argentina, with the following profile: R$ million (55% of the total) due in the short term, of which 48% was in foreign currency for financing the working capital of the US and European subsidiaries, and 52% was in reais, in loans from the BNDES and the Banco do Nordeste. R$ million (45% of the total) due in the long term, of which 33% was in foreign currency (Alpargatas Argentina) and 67% in reais. Consolidated net debt was reduced to R$ 43.7 million in the third quarter of the year compared with R$ million on June 30th, The reduction in debt debt underscores Alpargatas financial robustness, which corresponds to 0.1 times the company s 2008 EBITDA. 5. CAPITAL MARKETS Alpargatas shares performed well in the first nine months of The preferential shares (ALPA4) appreciated by 63%, on a par with the 64% variation in the Ibovespa index. The three advances corresponding to interest on own capital approved by the Administrative Council totaled R$ 24.4 million, R$ 14.6 million of which was paid in May, R$ 4.9 million in August and R$ 4.9 million in October. On November 13, the Council voted to advance another R$ 4.9 million in interest on own capital, payable on December SUBSEQUENT EVENTS Alpargatas filed a public offer with the Comisión Nacional de Valores in Buenos Aires to acquire all outstanding Alpargatas Argentina shares at the price of AR$ 3.40 (three pesos and forty centavos) per share. This offer will facilitate the integration between the companies in Brazil and Argentina and will permit further investments in manufacturing, logistics, brand communication and people development. In an Extraordinary General Shareholders Meeting held on October 29th, Pedro Pullen Parente and Cláudio Borin Guedes were elected to the Administrative Council. We extend our thanks to the outgoing council members Carlos Pires Oliveira Dias and José Alberto Diniz de Oliveira. 7. OUTLOOK In the long term, the World Cup in 2014 and the Olympic Games in 2016 will be important events for the market and for our brands. The growth and increasing maturity of our subsidiaries in the United States and Europe and the increased synergies resulting from the integration with Alpargatas Argentina will also boost Alpargatas performance. We are very well positioned for growth in this promising market as a result of our production capacity, our innovative products, our professional talents and the passion our brands inspire in consumers. 10

11 Attachment I Balance Sheet 09/30 (thousands of R$) ASSETS (a) LIABILITIES (a) Current Assets 981, ,225 Current Liabilities 433, ,670 Cash and banks 27,503 22,650 Suppliers 113, ,895 Financial applications 225, ,103 Financing 162,329 98,074 Clients (net after Provision for Doubtful Debtors) 401, ,259 Restructuring and debt agreements 13,298 27,714 Stocks 250, ,693 Salaries and payroll charges 71,156 79,099 Other accounts receivable 13,238 23,451 Contingencies provision 8,030 9,246 Anticipated expenses 8,416 6,068 Income Tax and Social Contribution Provision 9,490 7,607 Recoverable taxes 35,067 9,926 Taxes payable 16,525 10,838 Differed Income Tax and Social Contribution 19,027 17,075 Interest over our own capital and dividends payable 5,164 16,413 Other accounts payable 33,932 24,784 Long Term Assets 90,249 94,815 Long Term Liabilities 251, ,259 Goods destined to sale 6,374 6,775 Financing 134, ,849 Recoverable taxes 19,652 22,305 Restructuring and debt agreements 30,458 99,816 Differed Income Tax and Social Contribution 27,743 34,690 Taxes payable provision 36,965 36,121 Tax and labor compulsory deposit 12,785 10,492 Income Tax and Social Contribution Provision 18,254 31,652 Other accounts receivable 23,695 20,553 Contingencies provision 26,729 28,103 Other accounts payable 4,987 5,718 Permanent Assets 650, ,504 Minority Equity 36,715 44,776 Investments 85, ,955 Net Equity 1,000, ,837 Fixed assets 292, ,598 Realized capital stock 391, ,804 Intangible 265, ,034 Capital reserve 270, ,336 Differed 7,081 8,917 Treasury stocks (28,326) (28,609) Profit reserves 405, ,819 Equity Assessment (38,763) (10,513) Total Assets 1,722,276 1,746,543 Total Liabilities 1,722,276 1,746,543 Book value per share (R$) (a) The 2008 numbers include Alpargatas Argentina (pro forma) 11

12 Attachment II Results Statement (thousands of R$) 3Q9 3Q8 (a) 9M9 9M8 (a) Gross sales revenue Net sales revenue Sold products costs ( ) ( ) ( ) ( ) Gross profits gross margin 45,7% 43,1% 41,3% 41,7% Operational Revenues (Expenses) ( ) ( ) ( ) ( ) Sales ( ) ( ) ( ) ( ) General and Administrative (26.013) (26.690) (76.856) (76.356) Administrators compensation (1.113) (1.051) (3.317) (2.964) Differed amortization (5.676) (3.807) (14.611) (9.450) Others (5.762) (4.965) Operational Profit - EBIT operational margin 15,2% 13,5% 9,1% 12,3% Financial revenues Financial expenses (12.503) (7.574) (42.082) (25.727) Exchange Variation (636) 134 (5.620) (1.304) Premium amortization 0 (2.544) 0 (7.632) Equity accounting (2.406) (7.328) (15.270) (10.066) Operational Income Differed Income Tax and Social Contribution (18.013) (10.082) (17.365) (21.442) Minority Equity (1.131) (1.858) (1.927) (8.307) Net Income EBITDA millions of R$ 101,7 87,4 198,3 212,9 EBITDA margin 19,2% 16,8% 13,8% 15,3% (a) The 2008 numbers include Alpargatas Argentina (pro forma) 12

13 Attachment III EBITDA Calculation National operations (millions of R$) 3Q9 3Q8 (a) 9M9 9M8 (a) Operational Profit - EBIT 86,5 76,0 145,6 170,5 (+) Depreciation and amortization 12,1 10,5 34,5 29,9 (+/-) Items without a cash effect 5,3 3,7 8,5 3,2 (=) EBITDA 103,9 90,2 188,6 203,6 Alpargatas Argentina(millions of R$ - BRGAAP) 3Q9 3Q8 (a) 9M9 9M8 (a) Operational Profit - EBIT 9,5 8,3 22,5 33,3 (+) Depreciation and amortization 2,6 3,1 8,9 8,5 (+/-) Items without a cash effect 0,5 (0,7) 1,8 (1,3) (=) EBITDA 12,6 10,7 33,2 40,5 National and international operations results consolidation (millions of R$) 3Q9 3Q8 (a) 9M9 9M8 (a) Operational Profit - EBIT 80,9 69,9 131,9 171,5 (+) Depreciation and amortization 16,3 14,5 46,8 39,5 (+/-) Items without a cash effect 4,5 3,0 19,5 1,9 (=) EBITDA 101,7 87,4 198,3 212,9 (a) The 2008 numbers include Alpargatas Argentina (pro forma) We calculated the EBITDA adding to the Operational Profit - EBIT depreciation and amortization and adding or subtracting, according to each case, items without a cash effect. The EBITDA should not be considered an alternative to the net profit as an indicator of the operational performance or an alternative to the cash flow as a liquidity indicator. The EBITDA does not have a standardized meaning and its calculation at Alpargatas may not be comparable to that done by other companies. 13