Quarterly Financial Information B2W Companhia Global do Varejo. June and 2010 with the Independent Auditors Review Report

Transcription

1 Quarterly Financial Information B2W Companhia Global do Varejo June and 2010 with the Independent Auditors Review Report

2 A free translation from Portuguese into English of Independent Auditor s Review Report on interim financial information prepared in accordance with accounting practices adopted in Brazil INDEPENDENT AUDITOR S REVIEW REPORT To the Board of Directors and Officers of B2W Companhia Global do Varejo Rio de Janeiro - RJ Introduction We have reviewed the individual and consolidated interim financial information contained in the Quarterly Financial Information (ITR) of B2W Companhia Global do Varejo ( Company ) as of June 30, 2011, comprising the balance sheet and the related statements of income, of comprehensive income, of changes in equity and of cash flows for the quarter and the six-month period then ended, including the explanatory notes. Management is responsible for the preparation of the individual interim financial information in accordance with CPC 21 - Interim Financial Reporting, and of the consolidated interim financial information in accordance with CPC 21 and with IAS 34 Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the fair presentation of this information in conformity with the standards issued by the Brazilian Securities Commission (Comissão de Valores Mobiliários - CVM) applicable to the preparation of Quarterly Financial Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of review We conducted our review in accordance with Brazilian and International Standards on Review Engagements (NBC TR Review of Interim Financial Information Performed by the Independent Auditor of the Entity, and ISRE Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion on the individual interim financial information Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual interim financial information included in the Quarterly Financial Information (ITR) referred to above is not fairly presented, in all material respects, in accordance with CPC 21 applicable to the preparation of Quarterly Financial Information (ITR), consistently with the standards issued by the Brazilian Securities Commission.

3 Conclusion on the consolidated interim financial information Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information included in the Quarterly Financial Information (ITR) referred to above is not fairly presented, in all material respects, in accordance with CPC 21 and IAS 34 applicable to the preparation of Quarterly Financial Information (ITR), consistently with the standards issued by the Brazilian Securities Commission. Other matters Interim statements of value added We have also reviewed the individual and consolidated interim statements of value added for the six-month period ended June 30, 2011, the presentation of which in the interim financial information is required by the standards issued by the Brazilian Securities Commission (CVM) applicable to the preparation of Quarterly Financial Information (ITR), and considered as supplementary information under the IFRS, whereby no statement of value added presentation is required. These statements have been subject to the same review procedures previously described and, based on our review, nothing has come to our attention that causes us to believe that they have not been fairly prepared, in all material respects, in relation to the individual and consolidated interim financial information taken as a whole. Rio de Janeiro, August 04, ERNST & YOUNG TERCO Auditores Independentes S.S. CRC - 2SP /O-6 - F - RJ Fernando Alberto S. de Magalhães Accountant CRC - 1SP /O-0 - S - RJ

4 Individual Financial Statements - Balance Sheets Assets (In thousand of Reais) Account Description 06/30/ /31/ Assets 3,794,964 3,034, Current assets 2,620,773 2,095, Cash and cash equivalents 4,146 7, Marketable securities 878, , Marketable securities measured at Fair Value 878, , Marketable Securities 878, , Accounts Receivables 1,073, , Customers 1,073, , Inventories 490, , Inventories 490, , Recoverable Taxes 65,817 52, Current Recoverable Taxes 65,817 52, Recoverable Taxes 65,817 52, Prepaid expenses 10,007 17, Prepaid expenses 10,007 17, Other Current Assets 98,647 59, Other 98,647 59, Other Accounts Receivable 98,647 59, Non current assets 1,174, , Long-term assets 219, , Marketable Securities Measured at Fair Value 17, Marketable Securities 17, Deferred Taxes 138, , Deferred Income and Social Contribution Taxes 138, , Related parties 49,057 45, Subsidiaries 49,057 45, Other Non Current Assets 14,458 13, Escrow deposits 14,458 13, Investments 48,485 40, Equity investments 48,485 40, Investments in Subsidiaries 48,485 40, Fixed assets 188, , Fixed Assets in Operation 188, , Intangible 681, , Intangible 681, , Deferred charges 35,835 44, Deferred charges 35,835 44,030 1

5 Individual Financial Statements - Balance Sheets Liabilities (In thousand of Reais) Account Description 06/30/ /31/ Total Liabilities 3,794,964 3,034, Current Liabilities 1,073,184 1,201, Social and Labor Obligation 11,997 9, Labor Obligation 11,997 9, Salaries, Fees and Contributions 11,997 9, Suppliers 560, , National Suppliers 560, , National Suppliers 560, , Tax Liabilities 3,502 1, Federal Tax Liabilities (Deferred) Income and Social Contribution Taxes Payable State Tax Liabilities 3,373 1, Taxes on Goods and Services 3,373 1, Municipal Tax Liabilities Service Tax Loans and Financing 475, , Loans and Financing 282, , In National Currency 282, , Debentures 192, , Debentures 192, , Other Liabilities 21,126 30, Other 21,126 30, Dividends and Interest on Capital Payable 0 5, Other Liabilities 21,126 25, Non-current Liabilities 1,493,812 1,577, Loans and Financing 1,431,413 1,532, Loans and Financing 912,403 1,032, In National Currency 912,403 1,032, Debentures 519, , Debentures 519, , Other Liabilities 5,747 6, Others 5,747 6, Other Liabilities 5,747 6, Deferred Taxes 42,641 25, Deferred Income and Social Contribution Taxes 42,641 25, Provisions 14,011 12, Social Security, Labor and Civil Provisions 14,011 12, Tax Provisions 3,117 1, Social Security and Labor Provisions 1,879 1, Civil Provisions 9,015 9, Stockholders Equity 1,227, , Capital Stock 1,182, , Capital Reserves 9,201 7, Goodwill on Issue of Shares 209, , Treasury Shares -200, , Profit Reserves 63,581 64, Legal Reserve 9,632 9, Additional Proposed Dividend Treasury Shares -18,631-18, Expansion Reserve 72,580 72, Accumulated Profits/Losses -27, Equity Adjustment

6 Individual Financial Statements Income Statement (In thousands of Reais) Account Description 04/01/2011 to 06/30/ /01/2011 to 06/30/ /01/2010 to 06/30/ /01/2010 to 06/30/ Net Revenue from Sales and/or Services 913,172 1,867, ,432 1,762, Cost of Goods and/or Services Sold -702,163-1,401, ,179-1,301, Gross Profit 211, , , , Operating Income (Expenses) -170, , , , Selling Expenses -102, , , , General and Administrative Expenses -10,718-18,290-16,844-28, Other Operating Expenses -62,056-99,628-25,121-47, Depreciation/Amortization -19,852-41,316-14,780-29, Management Fees -1,859-3,374-1,030-2, Other Operating Income (Expenses) -40,345-54,938-9,311-16, Equity Pick-Up 4,890 7,713 1,093 3, Result Before Financial Result and Taxes 40, ,297 90, , Financial Result -78, ,489-68, , Financial Revenue 22,907 61,756 27,028 81, Financial Expenses -101, ,245-95, , Income Before Income and Social -38,191-46,192 22,526 38,543 Contribution Taxes 3.08 Income Tax and Social Contribution Taxes 14,618 18,309-7,287-11, Current , Deferred 14,618 18,309-6,445-9, Net Income from Continuing Operations -23,573-27,883 15,239 26, Net Income/Loss of the Period -23,573-27,883 15,239 26, Earnings per share (Reais/share) Common shares 0, , , ,24110

7 Individual Financial Statements Comprehensive Income Statement (In thousands of Reais) Account Description 04/01/2011 to 06/30/ /01/2011 to 06/30/ /01/2010 to 06/30/ /01/2010 to 06/30/ Net income/loss of the period -23,573-27,883 15,239 26, Other comprehensive results Equity adjustments financial investments , Income before income and social contribution taxes 4.03 Comprehensive adjustment of the period -23,081-27,925 15,274 25,658

8 Individual Financial Statements Cash Flow Statements Indirect Method (In thousands of Reais) Account Description 01/01/ /30/ /30/ Net Cash from Operating Activities -89, , Cash provided by operating activities 79, , Net Income of the period -27,883 26, Depreciation and Amortization 41,316 29, Deferred income tax and social contribution -18,309 11, Interest, monetary and currency changes 90,747 97, Equity result in subsidiaries -7,713-3, Other 1,730 8, Changes in assets and liabilities -169,739-51, Costumers accounts receivable 50,907 34, Inventories 36,367-30, Recoverable and deferred Taxes -13,119 8, Prepaid expenses 7, Escrow deposits -1, Accounts receivable related parties -3,442 5, Other accounts receivable (current and non current) -38,663 1, Suppliers -207,676-59, Payroll and related charges 2,769 1, Recoverable taxes (current and non current) 1, Other liabilities (current and non current) -5,165-11, Other 6.02 Net Cash from Investment Activities -212, , Permanent asset -212, , Net cash from Financing activities 299,268-33, Additions , Payments -115, , Debentures -22,646-19, Marketable securities -87,714 90, Discount of receivables -468, , Cash capital increase 1,000, Dividends -6,186-11, Foreign Exchange without Cash and Equivalents 6.05 Increase (Reduction) in Cash and Cash Equivalents -3,142-51, Opening Balance of Cash and Cash Equivalents 7,288 56, Closing Balance of Cash and Cash Equivalents 4,146 5,764 to 01/01/2010 to

9 Individual Financial Statements Statements of changes in Shareholders Equity - 01/01/2011 to 06/30/2011 (In thousands of Reais) Account Description Capital stock Capital reserves, options granted and treasury shares Profit reserves Accumulated profit/losses Other comprehensive results Shareholder s equity 5.01 Initial balance 182,491 7,807 64, , Adjusted initial balance 182,491 7,807 64, , Capital transactions with partners 1,000,000 1, ,000, Capital Increase 1,000, ,000, Dividends Stock option plan 0 1, , Total comprehensive result , , Net income of the period , , Other comprehensive result Equity adjustment financial investment 5.07 Final balance 1,182,491 9,201 63,581-27, ,227,968

10 Individual Financial Statements Statements of changes in Shareholders Equity 01/01/2010 to 06/30/2010 (In thousands of Reais) Account Description Capital stock Capital reserves, options granted and treasury shares results 5.01 Initial balance 181,566 5,291 41,828 3,209 1, , Adjusted initial balance 181,566 5,291 41,828 3,209 1, , Capital transactions with partners Stock Option Plan Total comprehensive result , , Net income of the period , , Other comprehensive result Equity adjustment financial investment 5.07 Final balance 181,566 6,130 41,828 29, ,641 Profit reserves Accumulated profit/losses Other comprehensive Shareholder s equity

11 Individual Financial Statements Statements of Value Added (In thousands of Reais) Account Description 01/01/2011 to 06/30/ /01/2010 to 06/30/ Revenues 2,056,497 1,953, Sales of products, goods and services 2,057,797 1,954, Other revenues Allowance for doubtful accounts -1,406-1, Goods acquired from third parties -1,839,967-1,689, Costs of products, goods and services -1,565,909-1,532, Materials, energy, third party services and -269, ,989 others Loss/Recovery of assets value -4,342-2, Gross value added 216, , Retentions -41,316-29, Depreciation, amortization and exhaustion -41,316-29, Net value added generated by the Company 175, , Value added received in transfer 69,469 57, Equity income 7,713 3, Financial revenues 61,756 54, Total value added to distribute 244, , Distribution of value added 244, , Employees 42,863 29, Direct compensation 24,946 20, Benefits 11,662 7, Guarantee fund for years of service 3,021 1, Others 3, Taxes and contributions 3,518 42, Federal -9,828 17, State 12,770 24, Municipal Compensation of third party capital 226, , Interest 210, , Rentals 15,891 14, Others Pay equity -27,883 26, Retained Earnings / Loss -27,883 26,565

12 Consolidated Financial Statements - Balance Sheets Assets (In thousand of Reais) Account Description 06/30/ /31/ Assets 4,198,144 3,212, Current assets 3,059,867 2,324, Cash and cash equivalents 10,242 15, Marketable securities 968, , Marketable securities measured at Fair Value 968, , Marketable Securities 968, , Accounts Receivable 1,369, , Customers 1,369, , Inventories 524, , Inventories 524, , Recoverable Taxes 72,179 54, Current Recoverable Taxes 72,179 54, Prepaid expenses 10,495 18, Prepaid expenses 10,495 18, Other current assets 103,774 67, Other 103,774 67, Other Accounts Receivable 103,774 67, Non current assets 1,138, , Long-term assets 233, , Marketable securities measured at Fair Value 8, Marketable Securities 8, Accounts Receivable 1,051 1, Other accounts receivable 1,051 1, Deferred taxes 181, , Deferred income and social contribution taxes 181, , Related parties credits 21,658 19, Controllers credits 21,658 19, Other Non Current assets 21,297 13, Escrow deposits 21,297 13, Fixed assets 199, , Fixed assets in operations 199, , Intangible 704, , Intangibles 704, ,566

13 Consolidated Financial Statements - Balance Sheets Liabilities (In thousand of Reais) Account Description 06/30/ /31/ Total Liabilities 4,198,144 3,212, Current liabilities 1,324,952 1,400, Social and labor obligation 15,441 11, Labor obligation 15,441 11, Suppliers 582, , National Suppliers 582, , Tax liabilities 8,216 8, Federal tax liabilities 4,618 5, Deferred income and social contribution taxes payable 2,784 2, Industrialized products tax 479 1, Program of social integration and Contribution to social 954 1,387 security financing Other State tax liabilities 3,565 2, Taxes on Goods and Services 3,565 2, Municipal tax liabilities Service tax Loans and financing 669, , Loans and financing 476, , In national currency 476, , Debentures 192, , Debentures 192, , Other liabilities 48,763 42, Other 48,763 42, Dividends and interest on capital payable 0 5, Other liabilities 48,763 37, Non-current liabilities 1,669,172 1,585, Loans and financing 1,590,151 1,535, Loans and financing 1,071,141 1,035, In national currency 1,071,141 1,035, Debentures 519, , Other liabilities 5,747 6, Other 5,747 6, Other liabilities 5,747 6, Deferred taxes 59,263 31, Deferred income and social contribution taxes 59,263 31, Provision 14,011 12, Social Security, Labor and Civil Provisions 14,011 12, Tax provisions 3,117 1, Social Security and Labor Provisions 1,879 1, Civil Provisions 9,015 9, Consolidated Stockholders equity 1,204, , Capital Stock 1,182, , Capital reserves 9,201 7, Goodwill on Issue of Shares 209, , Treasury shares -200, , Profit reserves 34,224 35, Legal reserve 9,632 9, Additional Proposed Dividend Treasury shares -18,631-18, Expansion reserve 43,223 43, Accumulated profits/losses -22, Equity adjustment

14 Consolidated Financial Statements Income Statement (In thousands of Reais) Account Description 04/01/2011 to 06/30/ /01/2011 to 06/30/ /01/2010 to 06/30/ /01/2010 to 06/30/ Net revenue from sales and/or services 982,603 2,011, ,805 1,867, Cost of goods and/or services sold -723,743-1,457, ,385-1,345, Gross profit 258, , , , Operating income (expenses) -198, , , , Selling expenses -122, , , , General and administrative expenses -14,559-26,870-20,619-35, Other operating expenses -61, ,714-22,424-41, Depreciation/amortization -18,078-37,419-11,780-23, Management fees -1,964-3,584-1,333-2, Other operating expenses -41,608-60,711-9,311-16, Result before financial result and taxes 60, , , , Financial Result -92, ,842-75, , Financial revenue 27,206 69,273 27,709 83, Financial expenses -119, , , , Resultado Antes dos Tributos sobre o -31,579-34,264 25,418 47,968 Lucro 3.08 Income before income and social 10,711 11,790-7,475-15,995 contribution taxes Current -3,819-6,702-3,214-7, Deferred 14,530 18,492-4,261-8, Net Income from Continuing Operations -20,868-22,474 17,943 31, Net income/loss of the period -20,868-22,474 17,943 31, Assigned to members of the Parent -20,868-22,474 17,943 31,973 Company 3.99 Earnings per share (Reais/share) Common Shares 0, , , ,29010

15 Consolidated Financial Statements Comprehensive Income Statement (In thousands of Reais) Account Description 04/01/2011 to 06/30/ /01/2011 to 06/30/ /01/2010 to 06/30/ /01/2010 to 06/30/ Net income/loss of the period -20,868-22,474 17,943 31, Other comprehensive results Equity adjustments financial investments , Income tax and social contribution taxes Comprehensive adjustment of the period -20,376-22,516 17,978 31, Assigned to members of the Parent Company -20,376-22,516 17,978 31,066

16 Consolidated Financial Statements Cash Flow Statements Indirect Method (In thousands of Reais) Account Description 01/01/ /30/ /30/ Net Cash from Operating Activities -201, , Cash provided by operating activities 98, , Net Income of the period -22,474 31, Depreciation and Amortization 37,419 23, Deferred income tax and social contribution -18,492 10, Interest, monetary and currency changes 98, , Other 3,744 13, Changes in assets and liabilities -300,520-49, Costumers accounts receivable -78,613 22, Inventories 30,889-33, Recoverable and deferred Taxes -17,260 8, Prepaid expenses 8, Escrow deposits -7, Accounts receivable related parties -2,297 13, Other accounts receivable (current and non current) -36,380 1, Suppliers -211,449-46, Payroll and related charges 3,921 1, Recoverable taxes (current and non current) , Other liabilities (current and non current) 10,551-12, Net Cash from Investment Activities -223, , Permanent asset -223, , Net cash from Financing activities 419,847-41, Additions 244, , Payments -170, , Debentures -22,646-19, Marketable securities -155,523 89, Discount of receivables -469, , Aumento de capital em dinheiro 1,000, Dividendos -6,186-11, Increase (Reduction) in Cash and Cash Equivalents -5,041-49, Opening Balance of Cash and Cash Equivalents 15,283 62, Closing Balance of Cash and Cash Equivalents 10,242 12,355 to 01/01/2010 to

17 Consolidated Financial Statements Statements of changes in Shareholders Equity - 01/01/2011 to 06/30/2011 (In thousands of Reais) Account Description Capital Stock Capital Reserves, Options Granted and Treasury Shares Profit Reserves Accumulated Profit/Losses Other Comprehensiv e Results Shareholder s Equity Participation of Non Controllers Consildated Shareholder s Equity 5.01 Initial balance 182,491 7,807 35, , , Adjusted initial balance 182,491 7,807 35, , , Capital transactions with 1,000,000 1, ,000, ,000,591 partners Capital Increase 1,000, ,000, ,000, Dividends Stock option plan 0 1, , , Total comprehensive , , ,516 result Net income of the period , , , Other comprehensive result Equity adjustment financial investment 5.07 Final balance 1,182,491 9,201 34,224-22, ,204, ,204,020

18 Consolidated Financial Statements Statements of changes in Shareholders Equity - 01/01/2010 to 06/30/2010 (In thousands of Reais) Account Description Capital Stock Capital Reserves, Options Granted and Treasury Shares Profit Reserves Accumulated Profit/Losses Other Comprehensive Results Shareholder s Equity Participation of Non Controllers Consildated Shareholder s Equity 5.01 Initial balance 181,566 5,291 1,556 3,209 1, , , Adjusted initial balance 181,566 5,291 1,556 3,209 1, , , Capital transactions with partners Stock option plan Total comprehensive result , , , Net income of the period , , , Other comprehensive result Equity adjustment financial investment 5.07 Final balance 181,566 6,130 1,556 35, , ,777

19 Consolidated Financial Statements Statements of Value Added (In thousands of Reais) Account Description 01/01/2011 to 06/30/ /01/2010 to 06/30/ Revenues 2,254,321 2,113, Sales of products, goods and services 2,237,376 2,103, Other revenues 1,404 1, Allowance for doubtful accounts 15,541 7, Goods acquired from third parties -1,954,110-1,800, Costs of products, goods and services -1,622,779-1,608, Materials, energy, third party services and others -308, , Loss/Recovery of assets value -23,233-16, Gross value added 300, , Retentions -37,419-23, Depreciation, amortization and exhaustion -37,419-23, Net value added generated by the Company 262, , Value added received in transfer 76,563 61, Financial revenues 76,563 61, Total value added to distribute 339, , Distribution of value added 339, , Employees 51,419 36, Direct compensation 31,824 26, Benefits 12,410 7, Guarantee fund for years of service 3,744 2, Other 3, Taxes and contributions 46,594 72, Federal 25,027 42, State 19,682 29, Municipal 1,885 1, Compensation of third party capital 263, , Interest 247, , Rentals 16,360 14, Others Pay equity -22,474 31, Retained Earnings / Loss -22,474 31,973

20 B2W ANNOUNCES CONSOLIDATED NET REVENUE OF R$ 2,011.3 MILLION IN 1H11, A GROWTH OF 8% IN RELATION TO 1H10 (VALUES IN CONSOLIDATED AND IN IFRS) Rio de Janeiro, August 4 th, 2011 B2W - Companhia Global do Varejo (BOVESPA: BTOW3), the leading online retail company in Brazil, formed from the merger between Americanas.com and Submarino, announces today its consolidated results for the 2 nd quarter of 2011 (2Q11) and 1 st half of 2011 (1H11). The accounting information that serves as the basis for the comments that follow are presented according to the rules of international financial reporting standards (IFRS), together with the rules issued by the Brazilian Securities Exchange Commission (CVM), as well as the Novo Mercado listing rules, and in Reais (R$). B2W s portfolio is composed of the brands Americanas.com, Submarino, Shoptime, B2W Viagens, Ingresso.com, Submarino Finance, BLOCKBUSTER Online and MesaExpress.com.br, offering over 35 categories of products and services through the Internet, telesales, catalogs, TV and kiosks. Consolidated Net Revenue (R$ million) 1,867 +8% B2W FINANCIAL AND OPERATIONAL HIGHLIGHTS 2,011 Executive Summary 1H11 Comparison to 1H10 Parent Company Consolidated 1H11 1H10 Var. (%) Financial Highlights (R$ million) 1H11 1H10 Var. (%) 1, , % Net Revenue 2, , % % Gross Profit % 24.9% 26.1% -1.2 p.p. Gross Margin (%NR) 27.5% 27.9% -0.4 p.p % EBITDA % 10.2% 11.8% -1.6 p.p. EBITDA Margin (%NR) 11.7% 12.1% -0.4 p.p. (27.9) % Net Result (22.5) % -1.5% 1.5% -3.0 p.p. Net Margin (%NR) -1.1% 1.7% -2.8 p.p. 1H10 1H11 Consolidated Gross Profit (R$ million) +6% H10 1H11 Consolidated EBITDA (R$ million) +4% Net Revenue In the 1H11, the consolidated net revenue reached R$ 2.011,3 million, a growth of 7.7% in relation to 1H10. The net revenue on the parent company in the 1H11 was R$ 1,867.4 million, growing 6.0% in relation to 1H10. Gross Profit The consolidated gross profit in 1H11 reached R$ million, a growth of 6.3% in relation to 1H10. In the parent company, the gross profit in 1H11 reached R$ million, a growth of 1.1% in relation to 1H10. EBITDA The consolidated EBITDA in the 1H11 reached R$ million, a growth of 4.0% compared to the 1H10. The EBITDA on the parent company was R$ million in the 1H11. Equity Accounting In the 1H11, the equity accounting reached a net gain of R$ 7.7 million, a growth of 133.3% when compared to 1H H H11 Ratification of the Capital Increase On 14 June 2011 was ratified the increase in the Company s capital stock of R$ 1.0 billion. The great success achieved by the capital increase demonstrates the confidence of our shareholders in the Company's business plan. Share of Submarino Card (%) +3 p.p. 32% 29% 1H10 1H11 % over Submarino website's sales Acquisition of the "Mesa Express" restaurant reservation site B2W concluded the acquisition of the restaurant reservation site MesaExpress.com.br. Submarino Card share reached 32% of the website s sale The share of Submarino Card of the Submarino website s sales reached 32% during the 1H11. The fastest way to buy on the internet, now also in Ingresso.com Ingresso.com launched the Caixa Expresso tool, making tickets for cinemas, theaters and major events just 1 Click away.

21 COMPANY STRUCTURE The B2W Companhia Global do Varejo, formed from the merger between Americanas.com and Submarino in 2006, has a portfolio with the brands Americanas.com, Submarino, Shoptime, B2W Viagens, Ingresso.com, Submarino Finance, BLOCKBUSTER Online and MesaExpress.com.br, that offer more than 35 categories of products and services through the internet, telesales, catalogs, TV and kiosks distribution channels. The following chart presents an integrated vision of B2W:

22 CONSOLIDATED PERFORMANCE COMMENTS NET REVENUE In the 1H11, the consolidated net revenue reached R$ 2,011.3 million, a growth of 7.7% against the R$ 1,867.1 million obtained in the 1H10. The net revenue on the parent company reached R$ 1,867.4 million in the 1H11, compared to R$ 1,762.5 million in the 1H10, representing a growth of 6.0%. +8% +6% 1,867 2,011 1,763 1,867 1H10 1H11 Consolidated 1H10 Parent Company 1H11 GROSS PROFIT In the 1H11, the consolidated gross profit reached R$ million, a growth of 6.3%, comparing to the gross profit of R$ million in the 1H10. In the parent company, the gross profit reached R$ million, a growth of 1.1% in relation to the R$ registered in the same period of the preceding year. +6% +1% H10 1H11 Consolidated 1H10 Parent Company 1H11 EBITDA In the 1H11, the consolidated EBITDA reached R$ million, a growth of 4.0% comparing to R$ million in the same period of the preceding year. In the 1H11, the EBITDA on the parent company reached R$ million, comparing to R$ million in the 1H10.

23 +4% 235-8% H10 Consolidated 1H11 1H10 Parent Company 1H11 OTHER OPERATIONAL INCOME / EXPENSES We book the Company's extraordinary income/expenses in the "Other Operating Income / Expenses" line item, previously recorded simply as "non-operating income." In 2Q11, this item mainly was comprised of non-recurring expenses related to solving delivery problems occurring in December CONSOLIDATED NET FINANCIAL RESULT In the 1H11, the net financial result was negative in R$ million, comparing to the negative financial result of R$ million presented in the 1H10. The net financial result is impacted by the reversal of Present Value Adjustments. This impact in the financial result can be seen in the following table: Breakdown of Net Financial Results - R$ Million 1H11 1H10 Δ% Net Financial Result without PV Adjustments (160.3) (149.4) 7.3% (+) Reversion of PV Adjust. on Sales and Taxes % (+) Reversion of PV Adjust. on Suppliers (44.0) (31.0) 41.9% (=) Reversions of Present Value Adjustments (10.5) % Net Financial Result (170.8) (138.2) 23.6% As shown in the table above, the PV Adjustments in the 1H10 were positive in R$ 11.2 million, while in 1H11 these adjustments were negative in R$ 10.5 million. Thus, excluding the PV adjustments on the 1H11 net financial result, there was an increase of 7.3% in relation to the 1H10. The Company s financial expenses are comprised of interest and monetary adjustments over loans and financing, cost of discounting receivables, taxes over financial transactions and other expenses. The Company continues to reaffirm its commitment to a conservative policy for investment of cash, manifested through the use of foreign denominated currency hedge instruments to mitigate the eventual exchange fluctuations, both for financial liabilities and its total cash position. These instruments offset the exchange risk, transforming the cost of the debt for local currency and interest rates (as a percentage of the CDI*). Similarly, it should be remembered that the Company s cash is invested in the largest financial institutions in Brazil. CDI - Certificado de Depósito Interbancário: average rate of borrowing in the interbank market.

24 FUNDO DE INVESTIMENTO EM DIREITOS CREDITÓRIOS (FIDC) By the end of February 2011, the structuring of the Fênix Fundo de Investimento em Direitos Creditórios do Varejo ( Fênix FIDC do Varejo ), a credit rights investment fund, was concluded. The purpose of this fund is to acquire the receivables held by B2W and by Lojas Americanas they are electronic transactions that are received and processed by acquiring systems and are originated from credit cards used in buying and selling products and services carried out between the Companies and their customers. The Fênix FIDC do Varejo is a new financial instrument of the Company that has a more attractive cost and a longer financing term for receivables discount operations. CONSOLIDATED NET RESULT In the 1H11, the net result reached -R$ 22.5 million, in relation to the R$ 32.0 million obtained in the same period of the preceding year. The results per share reached -R$ in the 1H11, in relation to the R$ obtained in the 1H10. Reconciliation of the Net Result - R$ Million 1H11 1H10 Δ% EBITDA % (+) Depreciation / Amortization (37.4) (23.3) 60.5% (+) Net Financial Result (170.8) (138.2) 23.6% (+) Other Operating Income (Expenses)* (60.7) (16.1) 277.0% (+) Income Tax and Social Contribution 11.7 (16.0) % (=) Net Result (22.5) % Results per Share (R$ ) R$ % Outstanding Shares (thousand) 156, ,194 * In the old accounting rules, considered as "non operating income". As shown in the table below, the PV Adjustments in the 1H11 had a negative net effect of $ 17.0 million, against a negative adjustment of $ 6.6 million in 1H10. Excluding the PV Adjustments effect in the result, the net result of the 1H11 was -R$ 5.5 million. Present value effects 1H11 1H10 Δ% Accounted Net Income (22.5) % (A) Operational Present Value Adjustments* (15.3) (21.2) -27.8% (B) Financial Present Value Adjustments (10.5) % Net Present Value Adjustments (A + B) (25.8) (10.0) 158.0% Fiscal Effects % Present Value Adjustments in Net Result (17.0) (6.6) 157.6% Net Income excluding Present Value Adjust. (5.5) % Net Margin without PV adjustment (%NR) -0.3% 2.0% % * Include PV adjustments on sales and taxes and PV adjustments on inventories. PARENT COMPANY INDEBTEDNESS B2W has adopted and practiced a strict policy of preserving cash and making the debt profile longer. B2W s cash balance on 06/30/2011, which amounted R$ million, continues to be higher than the Company's short-term gross debt, which totaled R$ million. On 06/30/2011, the Company s net debt was R$ 55.2 million, or -0.1x accumulated EBITDA in the last 12 months, comparing to 1.5x observed on 03/31/2011.

25 R$ million Parent Company Indebtedness 6/30/2011 3/31/2011 Short Term Debt Long Term Debt 1, ,487.7 Total Debt (1) 1, ,908.6 Cash and Equivalents Accounts Receivable Net of Discounts 1, Total Cash (2) 1, ,185.7 Net Cash (Debt) (2) - (1) 55.2 (722.9) Net Cash (Debt) / EBITDA LTM (0.1) 1.5 Average Maturity of Debt Accounts receivable consist of credit card receivables, net discounted value, which have immediate liquidity and can be considered as cash. The breakdown of B2W s accounts receivable, from the parent company point of view, is demonstrated in the table below: Accounts Receivable Conciliation 6/30/2011 3/31/2011 Gross Credit-Cards Receivable 1, ,568.4 Receivable Discounts (490.7) (1,041.9) Accounts Receivable net of Discounts 1, Present Value Adjustment (25.6) (16.0) Alowance for Doubtful Accounts (24.8) (20.9) Other Accounts Receivable Net Accounts Receivable - Parent Company 1, Because of the adoption of the new CPCs / IFRS, in particular the CPC 38 and its corresponding IAS 39, the Company began to write off (derecognize) receivables from credit card administrators the moment they were effectively advanced (according to the publication of the explanatory notes of the financial statements). However, to better demonstrate the volume of receivables anticipated on the base-dates analyzed, in the chart above the Company presents the accounts receivable adjusted by the advances made until the base-dates under analysis. NO FOREIGN CURRENCY EXPOSURE On 06/30/2011, B2W s balance sheet recorded foreign currency denominated debt. Such debt, however, is FULLY PROTECTED against any foreign exchange fluctuations through derivative (swap) operations that replace the exchange risk for the variation in the basic brazilian interest rate (CDI).

26 CAPITAL INCREASE On June 14, 2011 an increase in the Company's capital stock in the amount of R$ 1 billion was ratified, involving the issuance of 46,253,470 new common shares, all nominal, book-entry shares and without par value, at an issue price of R$ per share. The Capital Increase aims to improve the Company's capital structure, allowing a significant increase in investments in technological innovation and development of logistics and operations, enabling faster growth and the consolidation of its market leadership position. The great success achieved by the capital increase demonstrates the confidence of our shareholders in the Company's business plan. Shareholders Subscripted Shares % of the Capital % in B2W before the % in B2W after the Increase Capital Increase Capital Increase Controllers 29,767, % 56.57% 58.87% Other Shareholders 16,486, % 43.43% 41.13% PARENT COMPANY SALES BY MEANS OF PAYMENT Sales by means of payment in the 1H11 and in the 1H10 can be seen in the following table: Means of Payment 1H11 1H10 % Cash 28% 22% +6 p.p Credit Card 72% 78% -6 p.p NET WORKING CAPITAL The cash conversion cycle of the parent company on June 30, 2011 was 120 days, representing an increase of 4 days when compared to 116 days presented on June 30, days /30/2010 6/30/2011 (Net Working Capital = Days of Inventory + Days of Accounts Receivable Days of Suppliers) B2W, confirming its commitment to maximizing shareholder value, continues to manage working capital variables. Opportunities of improvement in internal processes and relationship with suppliers continue being implemented and we are certain that better levels can be achieved. EQUITY ACCOUNTING The equity accounting includes, basically, the subsidiaries Ingresso.com, B2W Viagens and Submarino Finance. In the 1H11, the equity accounting registered a net gain of R$ 7.7 million, a growth of 133.3% in relation to the R$ 3.3 million recorded in 1H10. The results of subsidiaries are evolving gradually, which makes us optimistic about the prospects for their growth.

27 INVESTMENT AND INNOVATION During the 1H11 B2W invested a total of R$ million. These investments were mainly concentrated in the technological and logistical/operational fronts. B2W constantly invests in the optimization of its logistical systems as a way of offering its clients an excellent level of service. During the first half of the year, new equipment was installed and a number of projects concluded at the Distribution Centers, increasing the level of automation. These investments reduce the time needed to deliver merchandise as well as human error. We also installed new systems to satisfy new tax and legal requirements. Another important investment front consisted of the development of a new customer service system, which allows B2W to operate more efficiently and assertively. Following its path of innovation, B2W continues to invest in new features aimed mainly at improving the purchase experience, increasing conversion rates and strengthening brand positioning. Among the innovations, we can highlight: Acquisition of the "Mesa Express" restaurant reservation site. B2W concluded the acquisition of the "MesaExpress.com.br" website, a restaurant reservation management system that lets clients guarantee dining places via the Internet. Caixa Expresso in Ingresso.com. The fastest way to buy on the Internet, now also available for ticket purchases. Ingresso.com launched the Caixa Expresso tool, making tickets for cinemas, theaters and major events just 1 Click away. New B2W Viagens Technological Platform. Launch of the new technological platform of B2W Viagens that allows an improvement of the intelligence in the payment conditions. Product Recommendations by Submarino. Based on the client s historical site use and purchase history, Submarino recommends products of the client s interest each time the Submarino virtual store is accessed. With this tool it is possible to focus on the consumer experience, offering products according to each client s needs and desires. Cross Sell Submarino. With this tool, upon accessing the shopping cart the client receives recommendations of products related to the selected item. This way, besides offering personalized customer service, the tool stimulates impulse purchases. In addition, a number of new technological features will be launched in the coming months, such as: Americanas.com on iphone Shoptime on iphone Video on Demand

28 SUBSIDIARIES KEY METRICS AND HIGHLIGHTS Ingresso.com. Following its expansion plan, B2W continues increasing its presence in other countries, being already present in 284 movie theaters in Mexico, 108 in Chile and 83 in Argentina, through a partnership with Cinemark. The Company continues searching for new countries to replicate its business model. In Brazil, Ingresso.com maintains a strong level of growth, boosted by the sale of tickets to blockbuster films, theaters with reserved seating and by the growing market for 3D films. Furthermore, Ingresso.com was the exclusive operator of the sale tickets to Rock in Rio 2011 and continues investing in improvements to increase the comfort and convenience of the clients, as the adoption of the Caixa Expresso tool, that makes the purchase process even faster. B2W Viagens. In line with the Company s international expansion plan, in 2Q11 the B2W Viagens continued structuring the business model of online travel in Argentina. In Brazil, the travel operations continue presenting high growth rates, affected by the investment in tecnology that allows an improvement of the intelligence in the payment conditions. Moreover, we continue investing in innovation and service quality, always offering the best services through our three brands: Submarino Viagens, Americanas Viagens and Shoptime Viagens. Submarino Finance. Purchases made with the Submarino Card have been gradually rising, reaching 32% of the Submarino website s total sales during the 1H11. Currently, the Submarino Card has a base of more than 650,000 cards issued.

29 CORPORATE GOVERNANCE AND CAPITAL MARKETS B2W is subject to the established rules of the São Paulo Stock Exchange (BM&FBOVESPA) and the Novo Mercado, the highest Corporate Governance level in Brazil. These include an ownership structure exclusively comprised of common shares and the election of independent members to the Board of Directors. B2W s Board of Directors is comprised of seven members, four of whom are appointed by the controlling shareholders and another three independent members. The requests to be registered as a publicly-traded Company and the listing of its shares under the Novo Mercado were approved by the Brazilian Securities Exchange Commission (CVM) and the BM&FBOVESPA on July, 25 and 26, 2007, respectively. B2W s common shares are listed on the BM&FBOVESPA and have been traded under ticker symbol BTOW3 (common) since August 8, Below is a short description of the main events occurred during the last quarters: On January 6, 2011 a meeting of the Board of Directors was held to nominate Mr. Marcio Cruz Meirelles and Mr. Thiago Mendes Barreira to be Commercial Officers for a term of office that ends upon the holding of the General Shareholders Meeting of On January 27, 2011 a meeting of the Board of Directors was held to approve the conditions for setting up a Fundo de Investimento em Direitos Creditórios ( FIDC or credit rights investment fund) designed to acquire credit rights belonging to the Company and others, pursuant to the Regulations, originated through credit cards used in product purchase and sales operations carried out by the Company. On March 22, 2011 a meeting of the Board of Directors was held to elect Mr. François Pierre Bloquiau as Investor Relations Officer and Mr. Murilo dos Santos Corrêa to be Chief Financial Officer in substitution of Mr. José Timotheo de Barros who was elected to the position of Chief Operating Officer, for mandates that shall expire as of the holding of the General Shareholders Meeting in On March 23, 2011 a meeting of the Board of Directors was held to approve an increase in the capital stock of the Company within authorized limits, pursuant to the terms of Article 5, 2, and the Company s Bylaws, by R$ 1,000,000,021.40, through the issuance in private subscription of 46,253,470 in new common shares, all nominal, registered and with no par value, at an issue price of R$ per share. On April 30, 2011 the Company s General and Extraordinary Shareholders Meetings were held, at which the following resolutions were approved: 1- To take recognizance of the accounts prepared by the managers and related financial statements for the fiscal year ended December 31, Allocation of the net income reported for the fiscal year ended December 31, Proposal for the adoption of the Capital Budget for the fiscal year of Election of Mssrs. Miguel Gomes Pereira Sarmiento Gutierrez, Celso Alves Ferreira Louro, Jorge Felipe Lemann and Osmair Antônio Luminatti as members of the Board of Directors and Mssrs. Carlos Eduardo Rugani Barcellos, Luiz Carlos Di Sessa Filippetti and Mauro Muratório Not as independent members of the Board of Directors. 5- Installation of the Fiscal Council and the election of Mssrs. Carlos Alberto de Souza, Pedro Carvalho de Mello and Peter Edward Cortes Marsden Wilson as full members and Mssrs. Ricardo Scalzo, Márcio Luciano Mancini and Marcos Duarte Santos as alternate members. On June 14, 2011 a meeting of the Board of Directors was held to ratify the increase in the Company s capital stock in view of the of the fully subscribed and purchased issue of 46,253,470 of the Company s common shares. Thus, the value of the Company s capital stock rose by R$ 1,000,000,021.40, going to R$ 1,182,490,663.74, represented by 159,816,337 shares. Minutes of the last meetings and other financial or corporate information about B2W are available on our website (

30 EXHIBIT I CONSOLIDATED INCOME STATEMENT B2W - Companhia Global do Varejo Consolidated Consolidated Income Statements Period ended on June 30 Period ended on June 30 (in million of Brazilian reais, except earnings per share) 2Q11 2Q10 Delta 1H11 1H10 Delta Gross Sales and Services Revenues 1, , % 2, , % PV adjustment on sales (36.0) (36.0) (78.8) (70.2) Taxes, returns and discounts on sales and services (107.4) (115.2) -3.6% (227.0) (223.0) 3.7% PV adjustments on taxes Net Sales and Services Revenues % 2, , % Cost of goods and services sold (750.0) (706.6) 4.7% (1,505.6) (1,376.0) 8.3% PV adjustments on inventories Gross Profit % % Gross Margin (% NR) 26.3% 27.5% -1.2 p.p. 27.5% 27.9% -0.4 p.p. Operating Revenues (Expenses) (156.8) (151.8) 3.3% (356.6) (318.9) 11.8% Selling Expenses (122.1) (118.1) 3.4% (288.7) (257.1) 12.3% General and Administrative Expenses (16.0) (21.5) -24.2% (29.1) (37.7) -20.8% Expenses with stock options plan (SOP) (0.6) (0.4) (1.4) (0.8) Depreciation and amortization (18.1) (11.8) 53.4% (37.4) (23.3) 60.5% Operating Income before Financial Expenses and Equity Accounting % % Net Financial Result without PV Adjustments (74.8) (81.5) 21.3% (160.3) (149.4) 23.6% Reversion of PV adjust. on sales and taxes Reversion of PV adjust. on suppliers (21.8) (16.8) (44.0) (31.0) Other operational income (expenses) (41.5) (9.3) 346.2% (60.7) (16.1) 277.0% Income tax and social contribution 11.8 (8.9) % 11.2 (17.8) % Fiscal effects by Law 11,638 (1.2) Net Result (20.9) % (22.5) % Net Margin (% NR) -2.1% 1.9% -4.0 p.p. -1.1% 1.7% -2.8 p.p. EBITDA % % EBITDA Margin (% NR) 12.2% 12.8% -0.6 p.p. 11.7% 12.1% -0.4 p.p. Total shares (thousand) 159, , , ,535 Treasury shares (thousand) 3,280 3,341 3,280 3,341 Total outstanding shares (thousand) 156, , , ,194 Net Income per Outstanding Share (R$) * In the the old accounting rules, considered as "non-operating income". ( ) % ( ) %

31 EXHIBIT II PARENT COMPANY INCOME STATEMENT B2W - Companhia Global do Varejo Parent Company Parent Company Income Statements Period ended on June 30 Period ended on June 30 (in million of Brazilian reais, except earnings per share) 2Q11 2Q10 Delta 1H11 1H10 Delta Gross Sales and Services Revenues 1, , % 2, , % PV adjustment on sales (36.0) (36.0) (78.8) (70.2) Taxes, returns and discounts on sales and services (93.7) (104.7) -7.4% (193.6) (198.8) -0.9% PV adjustments on taxes Net Sales and Services Revenues % 1, , % Cost of goods and services sold (728.5) (686.3) 4.6% (1,449.7) (1,331.8) 7.7% PV adjustments on inventories Gross Profit % % Gross Margin (% NR) 23.1% 26.3% -3.2 p.p. 24.9% 26.1% -1.2 p.p. Operating Revenues (Expenses) (135.4) (140.5) -3.6% (316.4) (283.1) 11.8% Selling Expenses (102.9) (107.8) -4.5% (253.4) (222.8) 13.7% General and Administrative Expenses (12.0) (17.5) -29.6% (20.3) (30.0) -29.5% Expenses with stock options plan (SOP) (0.6) (0.4) (1.4) (0.8) Depreciation and amortization (19.9) (14.8) 34.5% (41.3) (29.5) 40.0% Operating Income before Financial Expenses and Equity Accounting % % Net Financial Result without PV Adjustment (61.1) (73.6) 15.3% (138.0) (137.6) 17.5% Reversion of PV adjust. on sales and taxes Reversion of PV adjust. on suppliers (21.8) (16.8) (44.0) (31.0) Equity accounting % % Other operational income (expenses) (40.3) (9.3) 333.3% (54.9) (16.1) 241.0% Income tax and social contribution 15.8 (8.8) % 17.8 (13.7) % Fiscal effects by Law 11,638 (1.2) Net Result (23.6) % (27.9) % Net Margin (% NR) -2.6% 1.7% -4.3 p.p. -1.5% 1.5% -3.0 p.p. EBITDA % % EBITDA Margin (% NR) 10.5% 12.5% -2.0 p.p. 10.2% 11.8% -1.6 p.p. Total shares (thousand) 159, , , ,535 Treasury shares (thousand) 3,280 3,341 3,280 3,341 Total outstanding shares (thousand) 156, , , ,194 Net Income per Outstanding Share (R$) * In the the old accounting rules, considered as "non-operating income". ( ) % ( ) % O S

32 EXHIBIT III BALANCE SHEET B2W - Companhia Global do Varejo Balance Sheet (in million of Brazilian reais) ASSETS CURRENT ASSETS Parent Company Consolidated 6/30/2011 3/31/2011 6/30/2011 3/31/2011 Cash and Banks Marketable Receivables Accounts receivable 1, , Inventories Recoverable taxes Prepaid expenses and other accounts Total Current Assets 2, , , ,356.0 NON CURRENT ASSETS Marketable Receivables Deferred income tax and social contribution Escrow deposits and other receivables Investments Plant, property and equipament Intangible assets Deferred assets Total Non-Current Assets 1, , , TOTAL ASSETS 3, , , ,334.0 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Suppliers Loans and financing Debentures Salaries and social contribution Taxes payable Dividends payable Other accounts payable Total Current Liabilities 1, , , ,298.5 NON-CURRENT LIABILITIES Long-term liabilities: Loans and financing , ,232.7 Debentures Recoverable taxes Provision for contingencies and other accounts payable Total Non-Current Liabilities 1, , , ,811.0 SHAREHOLDERS' EQUITY Capital 1, , Capital Reserves Equity valuation adjustments Income reserves and others Total Shareholders' Equity 1, , TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 3, , , ,334.0

33 EXHIBIT IV ANNUAL CASH FLOW STATEMENT B2W - Companhia Global do Varejo Cash Flow Statement (in million of reais) Parent Company Consolidated Operating Activities 2Q11 2Q10 Delta 2Q11 2Q10 Delta Net Result for the Period (27.9) 26.6 (54.5) (22.5) 32.0 (54.5) Adjust to Net Result: Depreciation and amortization Deferred income tax and social contribution (18.3) 11.4 (29.7) (18.5) 10.2 (28.7) Interest, monetary and currency changes (6.3) (6.9) Equity result in subsidiaries (7.7) (3.3) (4.4) Others (6.6) (9.6) Adjusted Net Result (89.7) (85.6) Change in Working Capital: Accounts receivable (78.6) 22.6 (101.2) Inventory 36.4 (30.7) (33.8) 64.7 Suppliers (207.7) (59.1) (148.6) (211.4) (46.6) (164.8) Change in Working Capital: (120.4) (55.4) (65.0) (259.1) (57.8) (201.3) Change in Assets: Prepaid expenses 7.8 (0.8) (0.8) 9.1 Escrow deposits (1.0) (0.6) (0.4) (7.5) (0.6) (6.9) Recoverable taxes (13.1) 8.9 (22.0) (17.3) 9.0 (26.3) Other accounts receivable (current and non-current) (42.1) 7.2 (49.3) (38.7) 15.3 (54.0) Change in Assets: (48.4) 14.7 (63.1) (55.2) 22.9 (78.1) Change in Liabilities Salaries and social charges security Recoverable taxes 1.5 (0.5) 2.0 (0.7) (3.6) 2.9 Other liabilities (current and non-current) (5.3) (11.2) (12.7) 23.3 Change in Liabilities: (1.0) (10.6) (14.9) 28.7 Cash Flow from Operating Activities (89.9) (208.2) (201.6) (336.3) Investing Activities Purchases of property, plant and equipment and intangible assets (212.6) (135.5) (77.1) (223.2) (142.8) (80.4) Cash Flow from Investing Activities (212.6) (135.5) (77.1) (223.2) (142.8) (80.4) Financing Activities Additions (464.7) (228.3) Payments (116.0) (283.2) (170.5) (289.6) Debentures (22.6) (19.2) (3.4) (22.6) (19.2) (3.4) Marketable securities (87.7) 90.3 (178.0) (155.5) 89.4 (244.9) Discount of receivables (468.5) (275.6) (192.9) (469.9) (283.7) (186.2) Capital increase in cash 1, , , ,000.0 Repurchase of shares of Company's issuance - (11.3) (11.3) 11.3 Dividends (6.2) - (6.2) (6.2) - (6.2) Cash Flow from Financing Activities (34.0) (41.6) Change in cash balance (3.1) (51.2) 48.1 (5.0) (49.7) 44.7 Beginning Cash Balance Ending Cash Balance

34 INFORMATION ABOUT THE WEBCAST AND THE CONFERENCE CALL Conference calls with simultaneous translation into English, followed by a bilingual Q&A session will be held as follows: EBITDA Earnings before interest, taxes, depreciation and amortization and excluding other operating revenues/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. We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management, and on information currently available to us. Forward-looking statements include statements regarding our intent, belief or current expectations or that of our directors or executive officers. Forward-looking statements also include information concerning our possible or assumed future results of operations, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'' ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future results and shareholder values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond B2W ability to control or predict. The operational information presented in this press release were not revised by the independent auditors. BLOCKBUSTER Brand logo: BLOCKBUSTER trademarks are owned by Blockbuster Iinc, and B2W Companhia Global do Varejo has the sublicense to use these trademarks in the activities of video rental on internet. 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 B2W Companhia Global do Varejo has been granted a license to use these trademarks for given purposes.