Conference Call 4Q2009 and FY 2009 Results

Transcription

1 Conference Call 4Q2009 and FY 2009 Results In Portuguese with simultaneous translation in English Time: 11:00 am (US-ET) / 1:00 pm (Brazil) Access in English: +1 (786) Replay in English: +55 (11) password: Access in Portuguese: +55 (11) Replay in Portuguese: +55 (11) password:

2 Forward-Looking Statements Any statement made during this presentation referring to the Company s business outlook, projections and financial and operating goals represent beliefs and assumptions of the Management of Lojas Renner S.A and are based on information currently available to the Company. Future considerations are not a guarantee of performance. These involve risks, uncertainties and assumptions since they refer to forward-looking events and, therefore depend on circumstances that may not occur. The audience should understand that general economic and industry conditions, as well as other operating factors may affect the Company s future results and lead to outcomes that may be materially different from those expressed in such future considerations. Except where indicated to the contrary, the following financial and operating information is in conformity with Brazilian Corporate Law, incorporating the amendments in Law 11,638/07, and comparisons refer to the fourth quarter (4Q) and full year As from December 2007, the Company has begun to include revenues from financial services in Gross Operating Sales Revenue. However, in this report, comparisons, percentages of expenses, and operating margins are related to Net Revenue from Merchandise Sales. 2

3 Net Revenue from Merchandise Sales Net Revenue from Merchandise Sales % + 8.2% 1, , , % % Q07 4Q08 4Q Q08/4Q07-5.4% 4Q09/4Q08 9.5% 2008/ % 2009/ % Same Store Sales Growth Same Store Sales Growth 3

4 Store Operations Geographical Distribution December Selling Area & Number of Stores Thousand m 2 RR AP AC AM 2 1 RO MT 1 MS 1 PA 2 RS PR DF GO 5 5 SP 37 SC TO 7 MA MG 7 PI RJ 13 CE 2 1 RN 1 PB 3 PE AL SE BA 1 3 ES stores +12.9% stores + 8.7% stores Stores Distribution Centers Dec.07 Dec.08 Dec.09 4

5 Gross Profit from Merchandise Sales Gross Profit & Gross Margin from Merchandise Sales % % , % % Gross Profit 46.2% 44.9% 48.7% 46.2% 46.4% 47.5% Gross Margin from Retailing Operation 4Q07 4Q08 4Q The increase in Gross Margin from the Retailing Operation is due to gains in efficiency following improvements in purchasing processes, in turn reflecting successful negotiations with domestic suppliers and good inventory management. 5

6 Selling Expenses Selling Expenses Average Expenses per Store (R$ thousand) % +8.9% - 3.3% ,332 1, % + 7.1% % % 21.3% 23.7% 24.9% 25.1% 4Q07 4Q08 4Q Selling Expenses As a % of Net Revenue from Merchandise Sales 4Q08 4,762 4Q09-2.9% 4,623 The reduction in average store expenses in 4Q and for 2009 as a whole are related to a better sales performance in 4Q

7 General & Administrative Expenses General & Administrative Expenses Average Expenses per Store (R$ thousand) % + 0.8% - 8.4% % + 1.5% % 9.1% 8.5% 4Q08 4Q % 8.1% 8.4% 7.3% 4Q07 4Q08 4Q ,746 1,568 G&A Expenses As a % of Net Revenue from Merchandise Sales * This reduction in average store expenses reflects continuous efforts on the part of Management to reduce corporate costs during the year

8 Renner Card and Financial Services Result from Financial Services Breakdown 4Q09 4Q Revenues Recovery of Past Due Receivables (Related to Merchandise Sales) Additional Revenues Generated by Interest-bearing Plan Personal Loans and Other Financial Services Credit Losses, Net (29.7) (32.7) (112.5) (111.1) Merchandise Sales (11.4) (14.7) (43.4) (45.8) Additional Losses Generated by Interest-bearing Plan (13.0) (13.0) (46.9) (42.8) Personal Loans (5.3) (5.0) (22.2) (22.5) Operating Expenses (Renner Card & Financial Services) Total % of EBITDA 16.2% 16.1% 25.9% 25.0% 27.3 (11.4) (10.6) (38.5) (38.1) Result from Financial Services 4Q09 4Q Renner Card (Related to Merchandise Sales) Financial Services (0+8, Personal Loans and Other Financial Services) Operating Expenses (Renner Card & Financial Services) (11.4) (10.6) (38.5) (38.1) Total

9 EBITDA EBITDA and EBITDA Margin % + 8.9% % % EBITDA % 16.7% 22.4% 16.3% 15.9% 17.7% EBITDA Margin 4Q07 4Q08 4Q % 15.2% 20.5% 14.8% 14.3% 15.8% EBITDA/ Company s Total Net Revenue EBITDA/ Company s Total Net Revenue 9

10 EBITDA from Retailing Operation EBITDA Reconciliation 4Q09 4Q Net Income ( + ) Income and Social Cont. Taxes & Statutory P ( + ) Result from Write-off of Fixed Assets (+/-) Financial Result (0.5) ( + ) Depreciation and Amortization ( + ) Stock Option Plan EBITDA EBITDA Margin (over Net Revenues from Merchandise Sales) 22.4% 16.7% 17.7% 15.9% EBITDA from Retailing Operation 4Q09 4Q ( - ) Financial Services Result EBITDA from Retailing Operation EBITDA Margin from Retailing Operation (over Net Revenues from Merchandise Sales) 18.8% 14.0% 13.1% 11.9% 10

11 Financial Result & Cash Financial Result Financial Result 4Q09 4Q Financial Revenues Financial Expenses (6.4) (2.1) (12.2) (10.5) Net Effect of Adjustment of Long-Term Taxes to Present Value (0.5) 3.8 Foreign Exchange Variation, Net (0.4) Cost of Financing Delinquent Customers, Net (6.6) (10.8) (29.2) (26.1) Financial Result 0.5 (0.2) (10.7) (10.1) Net Cash Net Cash Dec.09 Sep.09 Dec.08 Cash and Cash Equivalents Total Loans and Financing (134.8) (154.2) (160.5) Short Term (99.5) (116.7) (130.8) Long Term (35.3) (37.5) (29.7) Net Cash

12 Net Income Net Income % + 7.8% % % Net Income Net Margin 9.6% 10.7% 14.1% 8.6% 8.3% 9.0% 4Q07 4Q08 4Q % 9.7% 12.9% 7.8% 7.4% 8.0% Net Income / Company s Total Net Revenue Net Income / Company s Total Net Revenue 12

13 Investments (CAPEX) CAPEX Evolution Q07 4Q08 4Q CAPEX Summary 4Q09 4Q New Stores Remodeling of Instalations IT Equipment & Systems Others Total

14 Expansion Plan City Location Date 1 Manaus - AM Shopping Manauara April 2 Natal - RN Shopping Midway Mall April 3 Bauru- SP Shopping Bauru April 4 Goiânia - GO Shopping Goiânia May 5 Brasília - DF Boullevard Brasília Shopping June 6 Passo Fundo - RS Bella Cittá Shopping Center September 7 Suzano - SP Suzano Shopping Center October 8 Osasco - SP Shopping União de Osasco October 9 Belém - PA Boulevard Shopping Belém November 10 Porto Alegre - RS Bourbon Shopping Ipiranga November City Location Date 1 Maceió - AL Shopping Iguatemi Maceió March 2 Joinville - SC Joinville Garten Shopping April 3 Palmas - TO Shopping Center Capim Dourado April 4 Rio de Janeiro - RJ West Shopping Rio April 5 São Paulo - SP Paulista Avenue April 6 São Paulo - SP Raposo Shopping May Total stores inaugurated in stores Total stores to be inaugurated in 1S10 6 stores 14

15 Balance Sheet In R$ MM Dec Part. Set Part. Dec Part. Cash & Cash Equivalents % % % Trade Account Receivables % % % Inventories % % % Inventories % % % Imports in Transit % 9.2 1% % Others % % % Permanent Assets % % % TOTAL ASSETS 1, % 1, % 1, % Loans and Financing % % % Financing - Financed Sales and Personal Loans % % % Suppliers % % % Commercial Suppliers % % % Antecipation of Payments (166.0) -9% (119.6) -8% (116.5) -7% Supplier of Material for Consumption % % % Taxes and Contributions Payable % % % Others % % % Not Current % % % Shareholders' Equity % % % TOTAL LIABILITIES 1, % 1, % 1, % 15

16 Renner Card Number of Cards Issued Millions % % 15.2 Renner Card Average Ticket R$ Dec.07 Dec.08 Dec % + 4.0% % % Q07 4Q08 4Q

17 Payment Options 4 th Quarter, 2009 FY 2009 Renner Card (0+8) 13.3% Renner Card (0+5) 46.3% Renner Card (0+8) 12.1% Renner Card (0+5) 48.1% Cash 22.7% Cash 21.9% Other Credit Cards 17.7% Sales using the Renner Card 59.6% Other Credit Cards 17.9% Sales using the Renner Card 60.2% 4 th Quarter, 2008 FY 2008 Renner Card (0+8) 11.6% Renner Card (0+5) 50.3% Renner Card (0+8) 13.8% Renner Card (0+5) 49.3% Cash 22.1% Cash 21.1% Other Credit Cards 16,0% Sales using the Renner Card 61.9% Other Credit Cards 15.8% Sales using the Renner Card 63.1% 17

18 Employees Number of Employees + 8.7% 842 new employees + 5.1% 9,183 9,647 10, stores 110 stores 120 stores Dec.07 Dec.08 Dec.09 18

19 Stock Appreciation 19

20 José Galló Chief Executive Officer José Carlos Hruby Chief Financial Officer and IR Officer Paula Picinini IR Manager Diva Freire IR Analyst Katia Ramires IR Analyst Lúcia Andrade IR Assistant Investor Relations Team Tel. +55 (51) / ri_lojasrenner@lojasrenner.com.br 20