CONFERENCE CALL PRESENTATION - 2Q16. August 15, 2016

Transcription

1 CONFERENCE CALL PRESENTATION - August 15, 2016

2 DISCLAIMER This presentation contains 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. These forward-looking statements include statements regarding our intent, belief or current expectations or that of our directors or executive officers. These forward-looking statements also include information concerning our possible or assumed future results of operations. Forwardlooking 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 or suggested by these statements. Many of the factors that will determine these results and values are beyond our ability to control or predict. 2

3 HIGHLIGHTS Better sales performance than market indicators 3.8 p.p. year-on-year increase in market share¹ value in the book market, our main category Gross margin improved for the fifth consecutive quarter, reaching 36.2% in (+ 290 bps vs. ) 7.5% reduction in comparable Operating Expenses (Excluding the impact of INSS on payroll) EBITDA improved R$9 million when compared to Saraiva Plus loyalty program associated reached 13 million customers (+14% vs. ) Customer Recognition Increase of 10% on our rating, remaining as level Great on the Reclame Aqui website Awards: (i) The Most Loved Store on the Internet in the Bookstore category (E-bit) (ii) The Best Retail Company in the Bookstore and Stationary category (BR Week 2016) (iii) The Best of São Paulo Bookstore services (Data Folha) (1) Source: GFK May/16 x May/15 data 3

4 RESULTS Superior performance given market conditions Retail Sales Data (1) : -6.6% () Book Sales Data (1) : -19.9% () Retail Gross Revenue +3.0% -2.4% SSS Growth In % (1) Source: IBGE s Monthly Trade Survey ( PMC ) 2.9% -0.6% SSS ex-coloring Books % Change 23 = % Adjusted % change by the impact from the Coloring Books Coloring Books total impact (R$) in the period Coloring Books total impact (R$) when compared to the same period from the previous year Store Gross Revenue % 269 E-commerce Gross Revenue % -9.0% +13.8% = =

5 RESULTS +290 bps on Gross Margin Success of the developed action plan Reducing costs and improving working capital Structuring of the supply and commercial planning areas Improvement in tools and algorithms that have contributed to greater assertiveness in pricing and assortment Gross Profit Gross Profit Margin In % +3.3% +290 bps % 36.2% 130 5

6 RESULTS * Excluindo o retorno do INSS sobre a folha performance Important profitability improvement trend Expenses under control / Excluding the impact of INSS on payroll there was a 7.5% reduction from Commitment in the quest for continuous effectiveness gains Operating Expenses EBITDA -3.3% -7.5%* Adjusted % change: excluding the impact of INSS on payroll Total impact of INSS on payroll 6

7 CONSOLIDATED INDEBTEDNESS Significant improvement in the Company s Net Debt Consolidated Net Debt* 59% Reduction % Reduction Q15 3Q15 4Q15 1Q Escrow account (Amount base:06/30/2016) * Adjusted Net Debt method calculation, excluding the Receivables Prepayment, according to the standard practices adopted by listed companies. 7

8 SARAIVA EDUCAÇÃO PNLD supply guarantee deposit: Released between April and May/16. Guarantee deposit for price adjustment: Partially released in July/18. Amount Receivable: Expected to be released by August/2016. Contractual Price Conditions (R$ Thousand) Total Transaction Amount 776,599 (-) Adjustment in the Estimated Accounting Price (Net Debt and Working Capital) 281,979 Net Transaction Amount 494,620 (-) Amount Released on December 30, ,165 (-) Amount Released in - PNLD Supply Guarantee Deposit 261,558 (-) Amount Received Saraiva - Guarantee Deposit for Price Adjustment Jul/16 77,780 (-) Amount Received Somos Educação - Guarantee Deposit for Price Adjustment Jul/16 13,270 Valor a Receber em 2016 * 42,846 * Escrow Account R$ thousand (-) Guarantee Deposit for Price Adjustment (12/30/2015) 42,846 8

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