BUSINESS TO WORLD COMPANHIA GLOBAL DO VAREJO

Transcription

1 BUSINESS TO WORLD COMPANHIA GLOBAL DO VAREJO 3Q10 Results Conference Call and Webcast November 5 th, 2010 (Friday) Time: 10:00 a.m. (US EDT) 12:00 p.m. (Brazil) Phone: +1 (786) Code: B2W Replay: until November 11th, 2010 Access: +55 (11) Code: 48090

2 General Considerations This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of B2W. These are merely projections and, as such, are based exclusively on the expectations of B2W s management concerning the future of the business and its continued access to capital to fund the Company s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitors pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in B2W s filed disclosure documents and are, therefore, subject to change without prior notice. The financial statements were prepared and are presented in accordance with the norms issued by the Securities Exchange Commission (known locally as CVM), as well as the Novo Mercado listing rules and include accounting changes introduced by Law 11,638/07, Provisional Measure 449/08, later converted into Law 11,941/09 and with the pronouncements, guidelines and interpretations issued by Accounting Pronouncements Committee (in Portuguese, CPC), in force on December 31, 2009, which will be different from those that will be used for preparation of financial statements of December 31, Except when otherwise specified, the analyses refer to the Consolidated results of B2W (Americanas.com, Submarino, Shoptime, Blockbuster Online, Ingresso.com, Submarino Finance and B2W Viagens). 2

3 3Q10 Highlights Gross Revenue (GR): +13% EBITDA: +14% Selling, General and Administrative Expenses: -1.0 p.p. (%GR) EBITDA Margin over GR: +0.1 p.p. Cash Conversion Cycle: 95 days International Expansion: in addition to Mexico and Argentina, we started selling movie tickets in Chile. Submarino Card: more than 560 thousand cards issued and 30% of participation in sales. 3

4 Gross Revenue (R$ million) Gross Revenue: +13% in 3Q10 and +13% in 9M10 +13% +13% 3,601 4,067 1,300 1,466 3Q09 3Q10 9M09 9M10 4

5 Net Revenue (R$ million) Net Revenue: +8% in 3Q10 and +14% in 9M10 +14% +8% 999 1,084 2,648 3,017 3Q09 3Q10 9M09 9M10 5

6 Tax Change For comparison purposes, the margins usually calculated as a percentage of the Net Revenue should be calculated as a percentage of the Gross Revenue. OVER NET 9M10 9M09 Variation REVENUE R$ MM % NR R$ MM % NR % Δ p.p. Gross Revenue 4, % 3, % 13% -1.2 p.p. Net Revenue 3, % 2, % 14% - Gross Profit % % 7% -1.6 p.p. EBITDA % % 12% -0.2 p.p. OVER GROSS 9M10 9M09 Variation REVENUE R$ MM % GR R$ MM % GR % Δ p.p. Gross Revenue 4, % 3, % 13% - Net Revenue 3, % 2, % 14% 0.7 p.p. Gross Profit % % 7% -1.0 p.p. EBITDA % % 12% 0.0 p.p. 6

7 Selling, General and Administrative Expenses Selling, General and Administrative Expenses: -1.0 p.p. in 3Q10 and -0.9 p.p. in 9M10 (%GR) -1.0 p.p p.p. 11.7% 12.0% 10.7% 11.1% 3T09 3T10 9M09 9M10 7

8 EBITDA (R$ million and % of Gross Revenue) EBITDA: R$126MM in 3Q10 and R$352MM in 9M10 EBITDA Margin over GR: +0.1 pp in 3Q10 14% 12% 8.5% 8.6% 8.7% 8.7% Q09 3Q10 9M09 9M10 8

9 Financial Results (R$ million) Conciliation of Financial Results Quarter Last 9 months 3Q10 3Q09 Δ% 9M10 9M09 Δ% Financial Revenues without PV adjustments % % Financial Expenses without PV adjustments (107.9) (87.5) 23% (290.5) (276.1) 5% Net Financial Result without Adjustments (98.8) (80.9) 22% (267.9) (241.2) 11% Reversion of PV Adjust. on Sales and Taxes - current year % % Reversion of PV Adjust. on Sales and Taxes - previous year % % Reversion of PV Adjust. on suppliers (16.7) (18.1) -8% (47.7) (56.6) -16% Reversions of Present Value Adjustments % % Net Financial Result (88.2) (66.9) 32% (240.6) (192.7) 25% PV = Present Value Adjustments 9

10 Net Income (R$ million) Net Income: R$2.5MM in 3Q10 and R$11.8MM in 9M10 PRESENT VALUE EFFECTS Last 9 months 9M10 9M09 Δ% Accounted Net Income 11,8 33,5-65% (A) Operational Present Value Adjustments (30,8) (26,4) 17% (B) Financial Present Value Adjustments 27,3 48,5-44% Net Present Value Adjustments (A + B) (3,5) 22,1-116% Fiscal Effects 1,2 (7,5) -116% Present Value Adjustments in Net Income (2,3) 14,6-116% Net Income excluding Present Value Adjust. 14,1 18,9-25% Net Margin (%GR) 0,3% 0,5% -0,2 p.p. 10

11 Cash Conversion Cycle: Parent Company Suppliers Inventories days days Q09 4Q09 1Q10 2Q10 3Q10 3Q09 4Q09 1Q10 2Q10 3Q10 Receivables Cash Conversion Cycle days -2 days Q09 4Q09 1Q10 2Q10 3Q10 3Q09 4Q09 1Q10 2Q10 3Q10 11

12 Logistic and Technological Integration New Americanas.com website Drag and Buy Augmented Reality Freight Menu 12

13 Subsidiaries International Expansion: 276 cinema s rooms in Mexico, 74 rooms in Argentina and 96 rooms in Chile Strong level of sales and growth Permanent investment in innovation, variety of destinations and service quality High growth levels, in line with business plan Submarino Card s participation on sales made on the Submarino website reached 30%. More than 560 thousand cards issued. 13

14 Priorities for Next Quarters Balance among growth of sales, operational margin and working capital Scale Gain reducing operating expenses Finalization of Operational and Technological integration of the brands Increased active customer base, frequency of purchases and sales conversion Improvement of our subsidiaries operation Continuing the international expansion plan Technology upgrade and innovation to all our business units Continuous staff training. 14

15 BUSINESS TO WORLD COMPANHIA GLOBAL DO VAREJO 3Q10 Results Conference Call and Webcast B2W Investor Relations Team Phone: +55 (21)