4 th Quarter 2015 Earnings Release

Transcription

1 4 th Quarter 2015 Earnings Release February 24 th, 2016

2 Highlights of Results 1 2 Market share gain in the total market in, with Net Sales of R$ billions, down 14.7%, and sales level recovery compared to 2Q/3Q15 Continue of cost structure adjustment, with nominal reduction of SG&A and better expenses dilution vs. 2Q/3Q Adjusted EBITDA margin of 3.7%. The Adjusted EBITDA Margin of bricks & mortars* was of 5.7% Net Cash of R$ 4.8 billion, maintenance of the solid capital structure and financial protection in a less predictable macro enviroment *Adjusted EBITDA Margin of the Brick & Mortars = Adjusted EBITDA Margin excluding Equity Incomef 2

3 Main Achievements of 2015 Optimization of the cost structure by adjusting headcount and closing unprofitable stores, thereby paving the way for a new competitiveness strategy for the company Opening of 176 mobile stores, 121 furniture renovations and banner conversion in 81 stores Implementation of Click & Collect with Via Varejo s inventory in all stores Improvement in financial services efficiency and new partnership agreement for issue of Casas Bahia cards Optimization of returns from marketing (MROI), by contracting the 2016 soccer package from Rede Globo 3

4 Sales and Expansion in Net Sales (R$ MM) Stores Map (Total of 1014 stores) ,7% ,0% North 5 Northeast 93 Middle West Same Store Sales: - 15,2% 15.2% % South 94 Southeast 728 Improvement of price competitiveness and strengthening promotions. Market share gain in the total market in Increase in sales level compared to 2Q/3Q15 Note: 1) As of december 31, stores opening in 27 stores openings in the last 12 months Renovation of 176 new concept telephony stores, 121 stores under the new furniture concept and 81 banner conversions¹ Ponto Frio to Casas Bahia. 4

5 Better SG&A dilution in Net Sales Evolution (R$ MM, % vs. 2014) SG&A Expenses (R$ MM, % net revenue) 28.5% -1.1% 27.4% -21.7% -22.7% -14.7% +800bps 5,388 4,324 4,095 5, % 500bps 550bps 24.4% 210bps 120bps 22.1% 22.4% 23.0% 22.3% 1Q15 2Q15 3Q15 1Q 2Q 3Q 4Q

6 Solid Gross Margin and pressure on fixed costs 2, % 1, % Gross Profit (R$ MM, % net revenue) Investment in competitiveness leading a increase in volume of sales Impact of 230bps of non recurring itens in Adjusted EBITDA (R$ MM, % net revenue) ,2% , % 1, % SG&A Expenses (R$ MM, % net revenue) 210bps Lower dilution compared to due to sales reduction 12,4% 204 3,7% 5,7% 4T14 4T Adjusted EBITDA margin of the Bricks & Mortars stores* was 5.7% in and 6.6% in 2015 *Adjusted EBITDA Margin of the Brick & Mortars = Adjusted EBITDA Margin excluding Equity Income 6

7 Solid Financial Structure Cash and Cash Equivalents (R$ MM) +1,132 NET FINANCIAL RESULT (% net revenues, R$ MM) 4, ,580 Loans and Financing¹ (R$ MM) 785-3,618 Net Cash (R$ MM) +32.5% 4, % 200bps -5.2% -3.0% 30bps -3.3% The better Cash position allied with the strategy of discounting receivables allowed to mitigate the impacts of the Selic interest rate hike of 22.4% in Solid Net Cash position and financial protection in a less predictable macro enviroment Note: 1) Does not include payment book debt (CDCI) 7

8 4 th Quarter 2015 Earning Release Credit Risk 11.0% 258 Delinquency (Delayed receivables up to 180 days, R$ MM, % receivables) 11.9% % % % % 14.4% % % 226 Highlights Delinquency hike of 16.7%, in line with the market, according to Serasa Experian. Investments in technology to streamline credit approval and collections processes, reducing portfolio risk; Improvement in collection process, allowing a higher portfolio recovery; 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 Improvement of client segmentation by risk, with approval rate reduction in high risk segments; Source: Via Varejo 8

9 4 th Quarter 2015 Earning Release Net Income Adjusted Net Income (R$ MM, % net sales) 964 Adjusted Net Income Bricks & Mortars* (R$ MM, % net sales) % -2.3% % % % 4.2% 1.6% 0.0% *Adjusted Net Income Bricks & Mortar stores = Adjusted Net Income excluding Equity Income 9

10 4 th Quarter 2015 Earning Release Perspectives for 2016 Sales Focus on sales performance and increasing competitiveness, allowed by reduction in expenses, sales of products and financial services and synergies the group Expenses Optimization Rump-up of 2015 initiatives, regionalization of media costs, capture of logistics and Back-office synergies, cost savings in Shared Services Center, third parties and integrated purchases. Operational Efficiency Increase in the level of service provided to customers reduction in stock out at the stores and in the delivery time of products to customers; Better regionalization in pricing, media, promotions and in defining the assortment per store cluster Increase the productivity of store portfolio based on internal benchmarks and sales conversion rate 10

11 Investor Relations Website: