Summary Company Date Composition of Capital stock 1 Dividends declared and/or paid out and after quarter 2 Individual Statements Balance Sheets Assets 3 Balance Sheets Liabilities and Shareholders Equity 4 Statements of Income 5 Statements of Comprehensive Income 6 Statements of Cash Flow 7 Statements of Changes in Shareholders Equity Equity - 01/01/2015 to 09/30/2015 8 Equity - 01/01/2014 to 09/30/2014 9 Statements Value Added 10 Statements Balance Sheets Assets 11 Balance Sheets Liabilities and Shareholders Equity 12 Statements of Income 13 Statements of Comprehensive Income 14 Statements of Cash Flow 15 Statements of Changes in Shareholders Equity Equity - 01/01/2015 to 09/30/2015 16 Equity - 01/01/2014 to 09/30/2014 17 Statements Value Added 18 Management Report / Business Performance Analysis 19 Explanatory Notes 25 Opinion and Statements Unqualified Opinion 66
COMPANY DATE / COMPOSITION OF CAPITAL STOCK QUANTITY OF SHARES CURRENT QUARTER (In Thousand) 09/30/2015 PAID-UP CAPITAL COMMON ON 639,375 PREFERRED - PN 0 TOTAL 639,375 TREASURY SHARES COMMON ON 0 PREFERRED PN 0 TOTAL 0 1
COMPANY DATE / DIVIDENDS DECLARED AND/OR PAID OUT DURING AND AFTER QUARTER EVENT APPROVAL TYPE BEGINNING PAYMENT SHARE S TYPE SHARE S CLASS AMOUNT PER SHARE Board of Directors Meeting 03/18/2014 Interest on Capital 04/24/2015 ON 0.02758 Board of Directors Meeting 06/17/2014 Interest on Capital 04/24/2015 ON 0.02824 Board of Directors Meeting 09/17/2014 Interest on Capital 04/24/2015 ON 0.02896 Board of Directors Meeting 12/17/2014 Interest on Capital 04/24/2015 ON 0.02926 Shareholders General Meeting 04/16/2015 Div idend 04/24/2015 ON 0.18315 Board of Directors Meeting 03/18/2015 Interest on Capital ON 0.03736 Board of Directors Meeting 06/18/2015 Interest on Capital ON 0.04172 Board of Directors Meeting 09/23/2015 Interest on Capital ON 0.04666 2
INDIVIDUAL STATEMENTS / BALANCE SHEETS - ASSETS (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION 1 TOTAL ASSETS 1.01 CURRENT ASSETS 1.01.01 CASH AND CASH EQUIVALENTS 1.01.03 ACCOUNTS RECEIVABLE 1.01.03.01 CUSTOMERS 1.01.03.02 OTHER ACCOUNTS RECEIVABLE 1.01.03.02.01 DERIVATIVE FINANCIAL INSTRUMENTS 1.01.03.02.02 OTHER ACCOUNTS RECEIVABLE 1.01.04 INVENTORIES 1.01.06 RECOVERABLE TAXES 1.01.06.01 CURRENT RECOVERABLE TAXES 1.01.07 PREPAID EXPENSES 1.02 NONCURRENT ASSETS 1.02.01 LONG -TERM ASSETS 1.02.01.03 ACCOUNTS RECEIVABLE 1.02.01.03.02 OTHER ACCOUNTS RECEIVABLE 1.02.01.06 DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION 1.02.01.06.01 DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION 1.02.01.07 PREPAID EXPENSES 1.02.01.07.01 PREPAID EXPENSES 1.02.01.09 OTHER NONCURRENT ASSETS 1.02.01.09.03 JUDICIAL DEPOSITS 1.02.01.09.04 RECOVERABLE TAXES 1.02.01.09.05 FIDC LOJAS RENNER 1.02.01.09.06 DERIVATIVE FINANCIAL INSTRUMENTS 1.02.02 INVESTMENTS 1.02.02.01 INVESTMENTS IN SUBSIDIARIES 1.02.02.01.02 INVESTMENTS IN SUBSIDIARIES 1.02.02.01.04 OTHER INVESTMENTS IN SUBSIDIARIES 1.02.03 PROPERTY, PLANT AND EQUIPMENT NET 1.02.03.01 PROPERTY, PLANT AND EQUIPMENT IN OPERATION 1.02.03.02 PROPERTY, PLANT AND EQUIPMENT LEASED 1.02.03.03 PROPERTY, PLANT AND EQUIPMENT ON GOING 1.02.04 INTANGIBLE NET 1.02.04.01 INTANGIBLE 1.02.04.01.01 INTANGIBLE LEASED 1.02.04.01.02 OTHER Current quarter 09/30/2015 Prior end of year 12/31/2014 4,272,905 4,361,706 1,957,549 2,270,818 404,753 709,403 804,820 969,224 610,326 908,389 194,494 60,835 168,982 30,171 25,512 30,664 675,116 536,625 63,074 50,431 63,074 50,431 9,786 5,135 2,315,356 2,090,888 286,158 319,220 9,211 7,487 9,211 7,487 30,795 77,931 30,795 77,931 4,923 6,341 4,923 6,341 241,229 227,461 10,801 6,790 46,517 38,473 182,000 182,000 1,911 198 428,857 344,224 428,857 344,224 428,794 344,161 63 63 1,381,840 1,226,156 1,167,452 1,053,569 29,036 29,501 185,352 143,086 218,501 201,288 218,501 201,288 19,451 30,964 199,050 170,324 3
INDIVIDUAL STATEMENTS / BALANCE SHEETS - LIABILITIES AND SHAREHOLDERS EQUITY (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION Current quarter Prior end of year 09/30/2015 12/31/2014 2 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 4,272,905 4,361,706 2.01 CURRENT LIABILITIES 1,273,838 1,493,386 2.01.01 SOCIAL AND LABOR OBLIGATIONS 132,451 134,779 2.01.01.01 SOCIAL OBLIGATIONS 19,508 16,267 2.01.01.01.01 SOCIAL CHARGES 19,508 16,267 2.01.01.02 LABOR OBLIGATIONS 112,943 118,512 2.01.01.02.01 SALARIES PAYABLE 112,943 118,512 2.01.02 SUPPLIERS 446,244 493,581 2.01.02.01 NATIONAL SUPPLIERS 446,244 493,581 2.01.03 FISCAL OBLIGATIONS 88,353 307,975 2.01.03.01 FEDERAL FISCAL OBLIGATIONS 31,762 171,506 2.01.03.01.01 INCOME TAX AND SOCIAL CONTRIBUTION 2,733 78,679 2.01.03.01.02 OTHER FEDERAL FISCAL OBLIGATIONS 29,029 92,827 2.01.03.02 STATE FISCAL OBLIGATIONS 53,008 134,635 2.01.03.03 MUNICIPAL FISCAL OBLIGATIONS 3,583 1,834 2.01.04 LOANS AND FINANCING 382,298 278,796 2.01.04.01 LOANS AND FINANCING 134,290 94,129 2.01.04.01.01 NATIONAL CURRENCY 134,290 94,129 2.01.04.02 DEBENTURES 242,020 180,537 2.01.04.03 FINANCING LEASE 5,988 4,130 2.01.04.03.01 FINANCING LEASE 5,988 4,130 2.01.05 OTHER OBLIGATIONS 198,676 254,574 2.01.05.02 OTHER 198,676 254,574 2.01.05.02.01 DIVIDENDS AND INTEREST ON EQUITY PAYABLE 70,238 63,113 2.01.05.02.02 MINIMUN DIVIDEND MANDATORY PAYABLE - 49,542 2.01.05.02.04 RENTS PAYABLE 30,376 37,024 2.01.05.02.05 OTHER OBLIGATIONS 85,334 86,334 2.01.05.02.06 STATUTORY PARTICIPATIONS - 11,657 2.01.05.02.07 OBLIGATIONS WITH CARD ADMINISTRATORS 7,836 6,093 2.01.05.02.08 DERIVATIVE FINANCIAL INSTRUMENTS 4,892 811 2.01.06 PROVISIONS 25,816 23,681 2.01.06.01 FISCAL, LABOR, SECURITY AND CIVIL PROVISIONS 25,816 23,681 2.01.06.01.04 CIVIL PROVISIONS 15,540 14,859 2.01.06.01.05 LABOR RISK PROVISIONS 10,276 8,822 2.02 NONCURRENT LIABILITIES 825,383 1,013,052 2.02.01 LOANS AND FINANCING 783,193 981,810 2.02.01.01 LOANS AND FINANCING 58,517 44,111 2.02.01.01.01 NATIONAL CURRENCY 58,517 44,111 2.02.01.02 DEBENTURES 683,035 887,839 2.02.01.03 FUNDING FINANCING LEASE 41,641 49,860 2.02.01.03.01 FUNDING FINANCING LEASE 41,641 49,860 2.02.02 OTHER OBLIGATIONS 9,990 5,614 2.02.02.01 RELATED PARTIES LIABILITIES 9,248 5,218 2.02.02.01.02 SUBSIDIARIES DEBT 9,248 5,218 2.02.02.02 OTHER 742 396 2.02.02.02.04 OTHER OBLIGATIONS - 396 2.02.02.02.05 DERIVATIVE FINANCIAL INSTRUMENTS 742-2.02.04 PROVISIONS 32,200 25,628 2.02.04.01 FISCAL, LABOR, SECURITY AND CIVIL PROVISIONS 32,200 25,628 2.02.04.01.01 FISCAL PROVISIONS 32,200 25,628 2.03 SHAREHOLDERS EQUITY 2,173,684 1,855,268 2.03.01 CAPITAL 1,130,364 750,853 2.03.02 CAPITAL RESERVES 265,368 245,860 2.03.02.02 PREMIUM RESERVE 118,165 118,165 2.03.02.04 OPTIONS GRANTED 147,203 127,695 2.03.04 REVENUE RESERVES 417,831 839,257 2.03.04.01 LEGAL RESERVE 63,523 63,523 2.03.04.08 ADDITIONAL DIVIDEND PROPOSED - 67,118 2.03.04.10 RESERVES FOR INVESTMENTS AND EXPANSION 354,308 708,616 2.03.05 RETAINED EARNINGS/ACCUMULATED DEFICIT 247,027-2.03.06 CARRYING VALUE ADJUSTMENTS 113,094 19,298 4
INDIVIDUAL STATEMENTS / STATEMENTS OF INCOME (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION 3.01 NET REVENUE SALES OF GOODS AND FINANCIAL PRODUCTS AND SERVICES 3.01.01 NET REVENUE SALES OF GOODS 3.01.02 NET REVENUE SALES FINANCIAL PRODUCTS AND SERVICES 3.02 COST OF GOODS SOLD AND FINANCIAL PRODUCTS AND SERVICES 3.02.01 COST OF GOODS SOLD 3.02.02 COST OF FINANCIAL PRODUCTS AND SERVICES 3.03 GROSS PROFIT 3.04 OPERATING (EXPENSES) INCOME 3.04.01 SELLING 3.04.02 GENERAL AND ADMINISTRATIVE 3.04.03 LOSS ON RECEIVABLES, NET 3.04.04 OTHER OPERATING REVENUES 3.04.05 OTHER OPERATING EXPENSES 3.04.06 EQUITY IN THE RESULTS OF INVESTEES 3.05 OPERATING PROFIT BEFORE FINANCIAL RESULTS AND TAXES 3.06 FINANCIAL RESULTS 3.06.01 FINANCIAL INCOME 3.06.02 FINANCIAL EXPENSES 3.07 PROFIT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAXES 3.08 INCOME TAX AND SOCIAL CONTRIBUTION 3.08.01 CURRENT 3.08.02 DEFERRED 3.09 NET RESULTS OF CONTINUED OPERATIONS 3.11 NET INCOME (LOSS) FOR THE PERIOD 3.99 EARNINGS PER SHARE (REAIS / SHARE) Current nine-month Prior nine-month Current quarter Prior quarter period period 04/01/2015 to 04/01/2014 to 01/01/2015 to 01/01/2014 to 09/30/2015 09/30/2014 09/30/2015 09/30/2014 1,280,902 3,746,430 1,103,733 3,122,768 1,168,514 3,397,513 989,988 2,808,857 112,388 348,917 113,745 313,911 (554,082) (1,573,312) (476,592) (1,326,935) (543,390) (1,537,393) (470,361) (1,312,819) (10,692) (35,919) (6,231) (14,116) 726,820 2,173,118 627,141 1,795,833 (575,643) (1,645,300) (487,316) (1,384,542) (310,795) (910,152) (265,331) (764,555) (113,332) (315,894) (91,936) (252,952) (53,515) (140,874) (37,496) (100,771) 14,982 34,058 4,391 6,700 (124,302) (339,135) (100,698) (278,400) 11,319 26,697 3,754 5,436 151,177 527,818 139,825 411,291 (27,483) (80,424) (21,592) (56,441) 17,749 70,667 29,243 64,892 (45,232) (151,091) (50,835) (121,333) 123,694 447,394 118,233 354,850 (27,728) (120,069) (34,844) (102,077) (38,176) (120,667) (38,982) (105,438) 10,448 598 4,138 3,361 95,966 327,325 83,389 252,773 95,966 327,325 83,389 252,773 3.99.01 EARNINGS PER SHARE - BASIC 3.99.01.01 ON 3.99.02 EARNINGS PER SHARE - DILUTED 3.99.02.01 ON 0.1502 0.5130 0.1323 0.4013 0.1499 0.5119 0.1320 0.4006 5
INDIVIDUAL STATEMENTS / STATEMENTS OF COMPREHENSIVE INCOME (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION 4.01 NET INCOME FOR THE PERIOD 4.02 OTHER COMPREHENSIVE INCOME 4.02.01 CASH FLOW HEDGE 4.02.02 PORTION OF OTHER COMPREHENSIVE INCOME OF SUBSIDIARIES 4.02.03 TAXES RELATED TO COMPONENTS OF COMPREHENSIVE INCOME 4.02.04 CUMULATIVE TRANSLATION ADJUSTMENTS 4.03 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Current nine-month Prior nine-month Current quarter Prior quarter period period 04/01/2015 to 04/01/2014 to 01/01/2015 to 01/01/2014 to 09/30/2015 09/30/2014 09/30/2015 09/30/2014 95,966 327,325 83,389 252,773 96,411 93,796 22,391 6,095 144,294 140,391 33,676 9,141 924 862 165 62 (49,060) (47,734) (11,450) (3,108) 253 277 - - 192,377 421,121 105,780 258,868 6
INDIVIDUAL STATEMENTS / STATEMENTS OF CASH FLOW INDIRECT METHOD (IN THOUSANDS OF REAIS - R$) Current nine-month Prior nine-month CODE DESCRIPTION period period 01/01/2015 to 01/01/2014 to 09/30/2015 09/30/2014 6.01 NET CASH FROM OPERATING ACTIVITIES 407,017 215,226 6.01.01 CASH FLOW FROM OPERATING ACTIVITIES 742,130 615,635 6.01.01.01 NET INCOME FOR THE PERIOD 327,325 252,773 6.01.01.02 DEPRECIATION AND AMORTIZATION 182,056 146,693 6.01.01.03 RESULT ON DISPOSAL OR WRITE-OFF OF FIXED ASSETS 1,433 316 6.01.01.04 TRANSACTION COSTS OF DEBENTURES 778 776 6.01.01.05 INTEREST EXPENSE OF BORROWING, FINANCING AND DEBENTURES 116,213 93,057 6.01.01.06 STOCK OPTION PLAN 19,508 17,205 6.01.01.07 EQUITY IN THE RESULTS OF INVESTEES (26,697) (5,436) 6.01.01.08 PROVISION FOR TAX, CIVIL AND LABOR RISKS 8,707 4,319 6.01.01.09 DEFERRED AND CURRENT TAXES 120,069 102,077 6.01.01.10 GAIN (LOSS) ON DERIVATIVE FINANCIAL INSTRUMENTS 1,342 3,666 6.01.01.11 NET FOREIGN EXCHANGE VARIATION (2,331) 377 6.01.01.12 REVERSAL FOR ADJUSTMENT TO NET REALIZABLE VALUE (16,077) (7,583) 6.01.01.13 PROVISION FOR LOSS ON ASSETS 9,804 7,395 6.01.02 CHANGES IN ASSETS AND LIABILITIES (46,908) (136,142) 6.01.02.01 ACCOUNTS RECEIVABLE 302,996 845,593 6.01.02.02 INVENTORIES (137,899) (163,727) 6.01.02.04 OTHER ASSETS (17,151) 15,180 6.01.02.05 JUDICIAL DEPOSITS (4,011) 701 6.01.02.06 APPLICATION SUBORDINATED QUOTAS FIDC RENNER - (182,000) 6.01.02.07 FINANCING FINANCIAL SERVIVCES OPERATIONS 15,240 (413,547) 6.01.02.08 FINANCING IMPORTS - (72,808) 6.01.02.09 SUPPLIERS (44,256) (15,710) 6.01.02.10 SALARIES AND VACATIONS (5,569) 12,290 6.01.02.11 TAXES AND CONTRIBUTIONS PAYABLE (142,332) (110,253) 6.01.02.12 OBLIGATIONS WITH CARD ADMINISTRATORS 1,743 4,520 6.01.02.13 OTHER PAYABLES (1,396) (50,224) 6.01.02.14 RENTS PAYABLE (6,647) (4,705) 6.01.02.15 STATUTARY OBLIGATIONS (11,657) (5,615) 6.01.02.16 INTERCOMPANY PAYABLES 4,031 4,163 6.01.03 OTHERS (288,205) (264,267) 6.01.03.02 PAYMENT OF INCOME TAX AND SOCIAL CONTRIBUTION (205,599) (173,052) 6.01.03.03 PAYMENT OF INTEREST ON LOANS, FINANCING AND DEBENTURES (82,606) (91,215) 6.02 NET CASH FROM INVESTING ACTIVITIES (413,183) (295,113) 6.02.01 ACQUISITIONS OF PROPERTY, PLANT AND EQUIPMENT (289,056) (226,502) 6.02.02 ACQUISITIONS INTANGIBLE ASSETS (67,631) (41,284) 6.02.05 PROCEEDS FROM DISPOSAL OF FIXED ASSETS 338 178 6.02.06 INVESTMENTS IN SUBSIDIARIES (56,834) (27,505) 6.03 NET CASH FROM FINANCING ACTIVITIES (298,484) (168,153) 6.03.01 BORROWINGS 36,362-6.03.02 CAPITAL INCREASE 25,203 10,965 6.03.03 REPAYMENT OF LOANS (170,798) (9,104) 6.03.05 INSTALLMENT LEASE FINANCING (10,303) (14,875) 6.03.07 INTEREST ON CAPITAL AND DIVIDENDS PAID (178,948) (155,139) 6.05 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (304,650) (248,040) 6.05.01 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 709,403 789,086 6.05.02 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 404,753 541,046 7
INDIVIDUAL STATEMENTS / STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY 01/01/2015 TO 09/30/2015 (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION CAPITAL CAPITAL RESERVES REVENUE RESERVES RETAINED CARRYING VALUE EARNINGS ADJUSTMENT TOTAL 5.01 OPENING BALANCES 750,853 245,860 839,257-19,298 1,855,268 5.03 BALANCES ADJUSTED 750,853 245,860 839,257-19,298 1,855,268 5.04 CAPITAL TRANSACTIONS WITH STOCKHOLDERS 379,511 19,508 (421,426) (80,298) - (102,705) 5.04.01 CAPITAL INCREASE 379,511 - (354,308) - - 25,203 5.04.03 OPTIONS GRANTED RECOGNIZED - 19,508 - - - 19,508 5.04.06 DIVIDENDS - - (67,118) - - (67,118) 5.04.07 INTEREST ON CAPITAL - - - (80,298) - (80,298) 5.05 TOTAL COMPREHENSIVE INCOME - - - 327,325 93,796 421,121 5.05.01 NET INCOME FOR THE PERIOD - - - 327,325-327,325 5.05.02 OTHER COMPREHENSIVE INCOME - - - - 93,796 93,796 5.05.02.01 CARRYING VALUE ADJUSTMENTS - - - - 93,519 93,519 5.05.02.02 CUMULATIVE TRANSLATION ADJUSTMENTS - - - - 277 277 5.07 BALANCES AS OF SEPTEMBER 30, 2015 1,130,364 265,368 417,831 247,027 113,094 2,173,684 8
INDIVIDUAL STATEMENTS / STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY 01/01/2014 TO 09/30/2014 (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION CAPITAL CAPITAL RESERVES REVENUE RESERVES RETAINED CARRYING VALUE EARNINGS ADJUSTMENT TOTAL 5.01 OPENING BALANCES 719,735 220,907 547,794-4,817 1,493,253 5.03 BALANCES ADJUSTED 719,735 220,907 547,794-4,817 1,493,253 5.04 CAPITAL TRANSACTIONS WITH STOCKHOLDERS 10,965 17,205 (58,507) (53,422) - (83,759) 5.04.01 CAPITAL INCREASE 10,965 - - - - 10,965 5.04.03 OPTIONS GRANTED RECOGNIZED - 17,205 - - - 17,205 5.04.06 DIVIDENDS - - (58,507) - - (58,507) 5.04.07 INTEREST ON CAPITAL - - - (53,422) - (53,422) 5.05 TOTAL COMPREHENSIVE INCOME - - - 252,773 6,095 258,868 5.05.01 NET INCOME FOR THE PERIOD - - - 252,773-252,773 5.05.02 OTHER COMPREHENSIVE INCOME - - - - 6,095 6,095 5.05.02.01 CARRYING VALUE ADJUSTMENTS - - - - 6,095 6,095 5.07 BALANCES AS OF SEPTEMBER 30, 2014 730,700 238,112 489,287 199,351 10,912 1,668,362 9
INDIVIDUAL STATEMENTS / STATEMENTS OF VALUE ADDED (IN THOUSANDS OF REAIS - R$) Current nine-month Prior nine-month CODE DESCRIPTION period period 01/01/2015 to 01/01/2014 to 09/30/2015 09/30/2014 7.01 REVENUES 4,850,930 4,022,802 7.01.01 SALES OF GOODS, FINANCIAL PRODUCTS AND SERVICES 4,955,768 4,115,296 7.01.01.01 SALE OF GOODS 4,594,860 3,785,318 7.01.01.02 FINANCIAL PRODUCTS/SERVICES 360,908 329,978 7.01.02 OTHER RESULTS (104,838) (92,494) 7.01.02.01 OTHER OPERATING INCOME 37,439 8,573 7.01.02.02 LOSSES ON RECEIVABLES, NET (140,874) (100,771) 7.01.02.03 RESULT ON DISPOSAL OR WRITE-OFF OF FIXED ASSETS (1,403) (296) 7.02 INPUT PURCHASED FROM THIRD PARTIES (2,439,359) (2,026,843) 7.02.01 COST OF SALES OF GOODS, FINANCIAL PRODUCTS AND SERVICES (INCLUDING TAXES) (1,721,631) (1,459,809) 7.02.02 MATERIALS, ENERGY, OUTSIDES SERVICES AND OTHER (673,287) (526,991) 7.02.03 LOSSES ON ASSETS (44,441) (40,043) 7.03 GROSS VALUE ADDED 2,411,571 1,995,959 7.04 RETENTIONS (182,056) (146,693) 7.04.01 DEPRECIATION AND AMORTIZATION (182,056) (146,693) 7.05 NET VALUE ADDED PRODUCED 2,229,515 1,849,266 7.06 VALUE ADDED RECEIVED IN TRANSFER 97,364 70,328 7.06.01 EQUITY IN THE RESULTS OF INVESTEES 26,697 5,436 7.06.02 FINANCIAL REVENUES 70,667 64,892 7.07 VALUE ADDED TO DISTRIBUTE 2,326,879 1,919,594 7.08 DISTRIBUTED VALUE ADDED 2,326,879 1,919,594 7.08.01 PERSONNEL EXPENSES 486,712 418,863 7.08.01.01 COMPENSATION 354,998 303,438 7.08.01.02 BENEFITS 73,270 61,390 7.08.01.03 GOVERNMENT SEVERANCE INDEMNITY FUND FOR EMPLOYEES (FGTS) 31,683 28,676 7.08.01.04 OTHER 26,761 25,359 7.08.01.04.01 STOCK OPTION PLAN 19,508 17,205 7.08.01.04.02 COMPENSATION OF OFFICERS 7,253 8,154 7.08.02 TAXES AND CONTRIBUTIONS 1,142,796 944,582 7.08.02.01 FEDERAL TAXES 440,029 385,332 7.08.02.02 STATE TAXES 678,481 538,395 7.08.02.03 MUNICIPAL EXPENSES 24,286 20,855 7.08.03 INTEREST ON THIRD PARTIES CAPITAL 370,046 303,376 7.08.03.02 RENTALS EXPENSES 218,955 182,043 7.08.03.03 OTHER 151,091 121,333 7.08.03.03.01 FINANCIAL EXPENSES 151,091 121,333 7.08.04 INTEREST ON CAPITAL 327,325 252,773 7.08.04.01 PROPOSED INTEREST ON CAPITAL 80,298 53,422 7.08.04.03 RETAINED EARNINGS 247,027 199,351 10
CONSOLIDATED STATEMENTS / BALANCE SHEETS - ASSETS (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION Current quarter Prior end of year 09/30/2015 12/31/2014 1 TOTAL ASSETS 5,296,100 5,322,362 1.01 CURRENT ASSETS 3,307,446 3,499,967 1.01.01 CASH AND CASH EQUIVALENTS 559,617 834,340 1.01.03 ACCOUNTS RECEIVABLE 1,888,072 1,981,803 1.01.03.01 CUSTOMERS 1,670,761 1,908,518 1.01.03.02 OTHER ACCOUNTS RECEIVABLE 217,311 73,285 1.01.03.02.01 DERIVATIVE FINANCIAL INTRUMENTS 174,195 33,948 1.01.03.02.02 OTHER ACCOUNTS RECEIVABLE 43,116 39,337 1.01.04 INVENTORIES 763,646 612,300 1.01.06 RECOVERABLE TAXES 87,838 68,127 1.01.06.01 CURRENT RECOVERABLE TAXES 87,838 68,127 1.01.07 PREPAID EXPENSES 8,273 3,397 1.02 NONCURRENT ASSETS 1,988,654 1,822,395 1.02.01 LONG -TERM ASSETS 126,816 150,183 1.02.01.03 ACCOUNTS RECEIVABLE 9,223 7,498 1.02.01.03.02 OTHER ACCOUNTS RECEIVABLE 9,223 7,498 1.02.01.06 DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION 56,606 95,670 1.02.01.06.01 DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION 56,606 95,670 1.02.01.09 OTHER NONCURRENT ASSETS 60,987 47,015 1.02.01.09.03 JUDICIAL DEPOSITS 10,844 6,833 1.02.01.09.04 RECOVERABLE TAXES 48,232 39,984 1.02.01.09.06 DERIVATIVE FINANCIAL INTRUMENTS 1,911 198 1.02.02 INVESTMENTS 63 63 1.02.02.01 INVESTMENTS IN SUBSIDIARIES 63 63 1.02.02.01.04 OTHER INVESTMENTS IN SUBSIDIARIES 63 63 1.02.03 PROPERTY, PLANT AND EQUIPMENT NET 1,475,060 1,304,065 1.02.03.01 PROPERTY, PLANT AND EQUIPMENT IN OPERATION 1,250,366 1,124,371 1.02.03.02 PROPERTY, PLANT AND EQUIPMENT LEASED 29,036 29,501 1.02.03.03 PROPERTY, PLANT AND EQUIPMENT ON GOING 195,658 150,193 1.02.04 INTANGIBLE NET 386,715 368,084 1.02.04.01 INTANGIBLE 270,036 251,405 1.02.04.01.01 INTANGIBLE LEASED 19,451 30,964 1.02.04.01.02 OTHER 250,585 220,441 1.02.04.02 GOODWILL 116,679 116,679 11
CONSOLIDATED STATEMENTS / BALANCE SHEETS - LIABILITIES AND SHAREHOLDERS EQUITY (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION Current quarter 09/30/2015 Prior end of year 12/31/2014 2 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 5,296,100 5,322,362 2.01 CURRENT LIABILITIES 1,886,717 2,038,184 2.01.01 SOCIAL AND LABOR OBLIGATIONS 140,826 142,015 2.01.01.01 SOCIAL OBLIGATIONS 20,824 17,353 2.01.01.01.01 SOCIAL CHARGES 20,824 17,353 2.01.01.02 LABOR OBLIGATIONS 120,002 124,662 2.01.01.02.01 SALARIES PAYABLE 120,002 124,662 2.01.02 SUPPLIERS 515,248 561,480 2.01.02.01 NATIONAL SUPPLIERS 515,248 561,480 2.01.03 FISCAL OBLIGATIONS 97,647 320,582 2.01.03.01 FEDERAL FISCAL OBLIGATIONS 37,412 178,476 2.01.03.01.01 INCOME TAX AND SOCIAL CONTRIBUTION 5,882 79,735 2.01.03.01.02 OTHER FEDERAL FISCAL OBLIGATIONS 31,530 98,741 2.01.03.02 STATE FISCAL OBLIGATIONS 56,160 139,845 2.01.03.03 MUNICIPAL FISCAL OBLIGATIONS 4,075 2,261 2.01.04 LOANS AND FINANCING 727,408 559,537 2.01.04.01 LOANS AND FINANCING 479,400 374,870 2.01.04.01.01 NACIONAL CURRENCY 460,446 340,127 2.01.04.01.02 FOREIGN CURRENCY 18,954 34,743 2.01.04.02 DEBENTURES 242,020 180,537 2.01.04.03 FUNDING FINANCING LEASE 5,988 4,130 2.01.04.03.01 FUNDING FINANCING LEASE 5,988 4,130 2.01.05 OTHER OBLIGATIONS 379,327 430,572 2.01.05.02 OTHER 379,327 430,572 2.01.05.02.01 DIVIDENDS AND INTEREST ON EQUITY PAYABLE 70,238 63,113 2.01.05.02.02 MINIMUN DIVIDEND MANDATORY PAYABLE - 49,542 2.01.05.02.04 RENTS PAYABLE 33,048 41,266 2.01.05.02.05 OTHER OBLIGATIONS 71,014 67,184 2.01.05.02.06 STATUTORY PARTICIPATIONS - 11,657 2.01.05.02.07 OBLIGATIONS WITH CARD ADMINISTRATIONS 199,962 196,988 2.01.05.02.08 DERIVATIVE FINANCIAL INTRUMENTS 5,065 822 2.01.06 PROVISIONS 26,261 23,998 2.01.06.01 FISCAL, LABOR, SECURITY AND CIVIL PROVISIONS 26,261 23,998 2.01.06.01.04 CIVIL PROVISIONS 15,652 14,974 2.01.06.01.05 LABOR RISK PROVISIONS 10,609 9,024 2.02 NONCURRENT LIABILITIES 1,235,699 1,428,910 2.02.01 LOANS AND FINANCING 1,198,270 1,395,469 2.02.01.01 LOANS AND FINANCING 473,594 457,770 2.02.01.01.01 NATIONAL CURRENCY 473,594 457,770 2.02.01.02 DEBENTURES 683,035 887,839 2.02.01.03 FINANCING LEASE 41,641 49,860 2.02.01.03.01 FINANCING LEASE 41,641 49,860 2.02.02 OTHER OBLIGATIONS 4,238 7,182 2.02.02.02 OTHER 4,238 7,182 2.02.02.02.03 TAX AND CONTRIBUTION PAYABLE 169 300 2.02.02.02.04 OTHER OBLIGATIONS 3,102 6,882 2.02.02.02.05 DERIVATIVE FINANCIAL INTRUMENTS 967-2.02.04 PROVISIONS 33,191 26,259 2.02.04.01 FISCAL, LABOR, SECURITY AND CIVIL PROVISIONS 33,191 26,259 2.02.04.01.01 FISCAL PROVISIONS 33,191 26,259 2.03 SHAREHOLDERS EQUITY 2,173,684 1,855,268 2.03.01 CAPITAL 1,130,364 750,853 2.03.02 CAPITAL RESERVES 265,368 245,860 2.03.02.02 PREMIUM RESERVE 118,165 118,165 2.03.02.04 OPTIONS GRANTED 147,203 127,695 2.03.04 REVENUE RESERVES 417,831 839,257 2.03.04.01 LEGAL RESERVE 63,523 63,523 2.03.04.08 ADDITIONAL DIVIDEND PROPOSED - 67,118 2.03.04.10 RESERVES FOR INVESTMENTS AND EXPANSION 354,308 708,616 2.03.05 RETAINED EARNINGS/ACCUMULATED DEFICIT 247,027-2.03.06 CARRYING VALUE ADJUSTMENTS 113,094 19,298 12
CONSOLIDATED STATEMENTS / STATEMENTS OF INCOME (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION 3.01 NET REVENUE SALES OF GOODS AND FINANCIAL PRODUCTS AND SERVICES 3.01.01 NET REVENUE SALES OF GOODS 3.01.02 NET REVENUE SALES FINANCIAL PRODUCTS AND SERVICES 3.02 COST OF GOODS SOLD AND FINANCIAL PRODUCTS AND SERVICES 3.02.01 COST OF GOODS SOLD 3.02.02 COST OF FINANCIAL PRODUCTS AND SERVICES 3.03 GROSS PROFIT 3.04 OPERATING (EXPENSES) INCOME 3.04.01 SELLING 3.04.02 GENERAL AND ADMINISTRATIVE 3.04.03 LOSS ON RECEIVABLES, NET 3.04.04 OTHER OPERATING REVENUES 3.04.05 OTHER OPERATING EXPENSES 3.05 OPERATING PROFIT BEFORE FINANCIAL RESULTS AND TAXES 3.06 FINANCIAL RESULTS 3.06.01 FINANCIAL INCOME 3.06.02 FINANCIAL EXPENSES 3.07 PROFIT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAXES 3.08 INCOME TAX AND SOCIAL CONTRIBUTION 3.08.01 CURRENT 3.08.02 DEFERRED 3.09 NET RESULTS OF CONTINUED OPERATIONS 3.11 NET INCOME (LOSS) FOR THE PERIOD 3.99 EARNINGS PER SHARE (REAIS / SHARE) Current nine-month Prior nine-month Current quarter Prior quarter period period 04/01/2015 to 04/01/2014 to 01/01/2015 to 01/01/2014 to 09/30/2015 09/30/2014 09/30/2015 09/30/2014 1,420,605 4,130,953 1,204,292 3,398,421 1,248,365 3,613,486 1,047,091 2,972,805 172,240 517,467 157,201 425,616 (596,697) (1,687,489) (507,600) (1,416,932) (586,005) (1,651,570) (501,369) (1,402,816) (10,692) (35,919) (6,231) (14,116) 823,908 2,443,464 696,692 1,981,489 (667,252) (1,902,359) (554,792) (1,566,446) (339,070) (990,361) (287,355) (829,722) (122,131) (339,135) (98,792) (272,725) (76,307) (196,180) (51,852) (135,067) 20,572 41,516 5,902 8,855 (150,316) (418,199) (122,695) (337,787) 156,656 541,105 141,900 415,043 (26,923) (80,693) (22,374) (58,911) 24,063 83,833 32,001 68,818 (50,986) (164,526) (54,375) (127,729) 129,733 460,412 119,526 356,132 (33,767) (133,087) (36,137) (103,359) (45,753) (142,200) (42,842) (116,863) 11,986 9,113 6,705 13,504 95,966 327,325 83,389 252,773 95,966 327,325 83,389 252,773 3.99.01 EARNINGS PER SHARE - BASIC 3.99.01.01 ON 3.99.02 EARNINGS PER SHARE - DILUTED 3.99.02.01 ON 0.1502 0.5130 0.1323 0.4013 0.1499 0.5119 0.1320 0.4006 13
CONSOLIDATED STATEMENTS / STATEMENTSOF COMPREHENSIVE INCOME (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION 4.01 NET INCOME FOR THE PERIOD 4.02 OTHER COMPREHENSIVE INCOME 4.02.01 CASH FLOW HEDGE 4.02.03 TAXES RELATED TO COMPONENTS OF COMPREHENSIVE INCOME 4.02.04 CUMULATIVE TRANSLATION ADJUSTMENTS 4.03 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Current nine-month Prior nine-month Current quarter Prior quarter period period 04/01/2015 to 04/01/2014 to 01/01/2015 to 01/01/2014 to 09/30/2015 09/30/2014 09/30/2015 09/30/2014 95,966 327,325 83,389 252,773 96,411 93,796 22,391 6,095 145,694 141,696 33,926 9,235 (49,536) (48,177) (11,535) (3,140) 253 277 - - 192,377 421,121 105,780 258,868 14
CONSOLIDATED STATEMENTS / STATEMENTS OF CASH FLOW INDIRECT METHOD (IN THOUSANDS OF REAIS - R$) Current nine-month Prior nine-month CODE DESCRIPTION period period 01/01/2015 to 01/01/2014 to 09/30/2015 09/30/2014 6.01 NET CASH FROM OPERATING ACTIVITIES 421,868 271,341 6.01.01 CASH FLOW FROM OPERATING ACTIVITIES 804,241 631,064 6.01.01.01 NET INCOME FOR THE PERIOD 327,325 252,773 6.01.01.02 DEPRECIATION AND AMORTIZATION 193,305 154,962 6.01.01.03 RESULT ON DISPOSAL OR WRITE-OFF OF FIXED ASSETS 1,609 316 6.01.01.04 TRANSACTION COSTS OF DEBENTURES 778 776 6.01.01.05 INTEREST EXPENSE OF BORROWING, FINANCING AND DEBENTURES 124,227 95,429 6.01.01.06 STOCK OPTION PLAN 19,508 17,205 6.01.01.08 PROVISION FOR TAX, CIVIL AND LABOR RISKS 9,195 4,452 6.01.01.09 DEFERRED AND CURRENT TAXES 133,087 103,359 6.01.01.10 GAIN (LOSS) ON DERIVATIVE FINANCIAL INSTRUMENTS (2,797) (2,563) 6.01.01.11 NET FOREIGN EXCHANGE VARIATION (3,505) (89) 6.01.01.12 REVERSAL FOR ADJUSTMENT TO NET REALIZABLE VALUE (16,076) (7,583) 6.01.01.13 PROVISION FOR LOSS ON ASSETS 17,585 12,027 6.01.02 CHANGES IN ASSETS AND LIABILITIES (74,628) (84,393) 6.01.02.01 ACCOUNTS RECEIVABLE 235,755 177,745 6.01.02.02 INVENTORIES (151,602) (173,600) 6.01.02.04 OTHER ASSETS (30,600) 19,214 6.01.02.05 JUDICIAL DEPOSITS (4,011) 697 6.01.02.07 FINANCING FINANCIAL SERVIVCES OPERATIONS 95,403 87,340 6.01.02.08 FINANCING IMPORTS (8,442) (68,824) 6.01.02.09 SUPPLIERS (41,978) (10,720) 6.01.02.10 SALARIES AND VACATIONS (4,659) 13,634 6.01.02.11 TAXES AND CONTRIBUTIONS PAYABLE (147,643) (111,122) 6.01.02.12 OBLIGATIONS WITH CARD ADMINISTRATORS 2,973 41,840 6.01.02.13 OTHER PAYABLES 51 (50,454) 6.01.02.14 RENTS PAYABLE (8,218) (4,528) 6.01.02.15 STATUTARY OBLIGATIONS (11,657) (5,615) 6.01.03 OTHERS (307,745) (275,330) 6.01.03.02 PAYMENT OF INCOME TAX AND SOCIAL CONTRIBUTION (225,036) (183,997) 6.01.03.03 PAYMENT OF INTEREST ON LOANS, FINANCING AND DEBENTURES (82,709) (91,333) 6.02 NET CASH FROM INVESTING ACTIVITIES (384,540) (300,318) 6.02.01 ACQUISITIONS OF PROPERTY, PLANT AND EQUIPMENT (311,127) (253,023) 6.02.02 ACQUISITIONS INTANGIBLE ASSETS (73,751) (47,611) 6.02.05 PROCEEDS FROM DISPOSAL OF FIXED ASSETS 338 316 6.03 NET CASH FROM FINANCING ACTIVITIES (312,328) (146,154) 6.03.01 BORROWINGS 60,361 26,962 6.03.02 CAPITAL INCREASE 25,203 10,965 6.03.03 REPAYMENT OF LOANS (208,641) (14,067) 6.03.05 INSTALLMENT LEASE FINANCING (10,303) (14,875) 6.03.07 INTEREST ON CAPITAL AND DIVIDENDS PAID (178,948) (155,139) 6.04 EXCHANGE VARIATION ON CASH AND CASH EQUIVALENTS 277-6.05 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (274,723) (175,131) 6.05.01 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 834,340 801,592 6.05.02 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 559,617 626,461 15
CONSOLIDATED STATEMENTS / STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY 01/01/2015 TO 09/30/2015 (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION CAPITAL CAPITAL RESERVES REVENUE RESERVES RETAINED CARRYING VALUE EARNINGS ADJUSTMENT TOTAL 5.01 OPENING BALANCES 750,853 245,860 839,257-19,298 1,855,268 5.03 BALANCES ADJUSTED 750,853 245,860 839,257-19,298 1,855,268 5.04 CAPITAL TRANSACTIONS WITH STOCKHOLDERS 379,511 19,508 (421,426) (80,298) - (102,705) 5.04.01 CAPITAL INCREASE 379,511 - (354,308) - - 25,203 5.04.03 OPTIONS GRANTED RECOGNIZED - 19,508 - - - 19,508 5.04.06 DIVIDENDS - - (67,118) - - (67,118) 5.04.07 INTEREST ON CAPITAL - - - (80,298) - (80,298) 5.05 TOTAL COMPREHENSIVE INCOME - - - 327,325 93,796 421,121 5.05.01 NET INCOME FOR THE PERIOD - - - 327,325-327,325 5.05.02 OTHER COMPREHENSIVE INCOME - - - - 93,796 93,796 5.05.02.01 CARRYING VALUE ADJUSTMENTS - - - - 93,519 93,519 5.05.02.02 CUMULATIVE TRANSLATION ADJUSTMENTS - - - - 277 277 5.07 BALANCES AS OF SEPTEMBER 30, 2015 1,130,364 265,368 417,831 247,027 113,094 2,173,684 16
CONSOLIDATED STATEMENTS / STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY 01/01/2014 TO 09/30/2014 (IN THOUSANDS OF REAIS - R$) CODE DESCRIPTION CAPITAL CAPITAL RESERVES REVENUE RESERVES RETAINED CARRYING VALUE EARNINGS ADJUSTMENT TOTAL 5.01 OPENING BALANCES 719,735 220,907 547,794-4,817 1,493,253 5.03 BALANCES ADJUSTED 719,735 220,907 547,794-4,817 1,493,253 5.04 CAPITAL TRANSACTIONS WITH STOCKHOLDERS 10,965 17,205 (58,507) (53,422) - (83,759) 5.04.01 CAPITAL INCREASE 10,965 - - - - 10,965 5.04.03 OPTIONS GRANTED RECOGNIZED - 17,205 - - - 17,205 5.04.06 DIVIDENDS - - (58,507) - - (58,507) 5.04.07 INTEREST ON CAPITAL - - - (53,422) - (53,422) 5.05 TOTAL COMPREHENSIVE INCOME - - - 252,773 6,095 258,868 5.05.01 NET INCOME FOR THE PERIOD - - - 252,773-252,773 5.05.02 OTHER COMPREHENSIVE INCOME - - - - 6,095 6,095 5.05.02.01 CARRYING VALUE ADJUSTMENTS - - - - 6,095 6,095 5.07 BALANCES AS OF SEPTEMBER 30, 2014 730,700 238,112 489,287 199,351 10,912 1,668,362 17
CONSOLIDATED STATEMENTS / STATEMENTS OF VALUE ADDED (IN THOUSANDS OF REAIS - R$) Current nine-month Prior nine-month CODE DESCRIPTION period period 01/01/2015 to 01/01/2014 to 09/30/2015 09/30/2014 7.01 REVENUES 5,259,879 4,316,935 7.01.01 SALES OF GOODS, FINANCIAL PRODUCTS AND SERVICES 5,412,518 4,439,915 7.01.01.01 SALE OF GOODS 4,856,931 3,982,095 7.01.01.02 FINANCIAL PRODUCTS/SERVICES 555,587 457,820 7.01.02 OTHER RESULTS (152,639) (122,980) 7.01.02.01 OTHER OPERATING INCOME 45,120 12,384 7.01.02.02 LOSSES ON RECEIVABLES, NET (196,180) (135,067) 7.01.02.03 RESULT ON DISPOSAL OR WRITE-OFF OF FIXED ASSETS (1,579) (297) 7.02 INPUT PURCHASED FROM THIRD PARTIES (2,673,756) (2,198,651) 7.02.01 COST OF SALES OF GOODS, FINANCIAL PRODUCTS AND SERVICES (INCLUDING TAXES) (1,867,561) (1,558,242) 7.02.02 MATERIALS, ENERGY, OUTSIDES SERVICES AND OTHER (759,125) (598,239) 7.02.03 LOSSES ON THE COLLECTION OF ASSETS (47,070) (42,170) 7.03 GROSS VALUE ADDED 2,586,123 2,118,284 7.04 RETENTIONS (193,305) (154,962) 7.04.01 DEPRECIATION AND AMORTIZATION (193,305) (154,962) 7.05 NET VALUE ADDED PRODUCED 2,392,818 1,963,322 7.06 VALUE ADDED RECEIVED IN TRANSFER 83,833 68,818 7.06.02 FINANCIAL REVENUES 83,833 68,818 7.07 VALUE ADDED TO DISTRIBUTE 2,476,651 2,032,140 7.08 DISTRIBUTED VALUE ADDED 2,476,651 2,032,140 7.08.01 PERSONNEL EXPENSES 556,392 471,544 7.08.01.01 COMPENSATION 418,258 351,021 7.08.01.02 BENEFITS 77,078 64,504 7.08.01.03 GOVERNMENT SEVERANCE INDEMNITY FUND FOR EMPLOYEES (FGTS) 34,295 30,660 7.08.01.04 OTHER 26,761 25,359 7.08.01.04.01 STOCK OPTION PLAN 19,508 17,205 7.08.01.04.02 COMPENSATION OF OFFICERS 7,253 8,154 7.08.02 TAXES AND CONTRIBUTIONS 1,193,118 986,193 7.08.02.01 FEDERAL TAXES 467,734 413,367 7.08.02.02 STATE TAXES 697,305 547,632 7.08.02.03 MUNICIPAL EXPENSES 28,079 25,194 7.08.03 INTEREST ON THIRD PARTIES CAPITAL 399,816 321,630 7.08.03.02 RENTALS EXPENSES 235,290 193,901 7.08.03.03 OTHER 164,526 127,729 7.08.03.03.01 FINANCIAL EXPENSES 164,526 127,729 7.08.04 INTEREST ON CAPITAL 327,325 252,773 7.08.04.01 PROPOSED INTEREST ON CAPITAL 80,298 53,422 7.08.04.03 RETAINED EARNINGS 247,027 199,351 18
MANAGEMENT REPORT / BUSINESS PERFORMANCE ANALYSIS HIGHLIGHTS FOR 3Q15 Net Revenue from Merchandise Sales with growth of 19.2% Same Store Sales of +12.6% Gross Margin from the Retailing Operation of 53.1% (+1.0p.p.) Operational Expenses represented 36.9% of Net Revenue Adjusted EBITDA from the Retailing Operation of R$ 182.7 million (+28.0%) EBITDA Margin from the Retailing Operation of 14.6% (+1.0p.p.) Total Adjusted EBITDA of R$ 230.5 million (+12.8%) Net Income of R$ 96.0 million (+15.1%) MANAGEMENT COMMENTS Renner s third quarter was characterized by a good sales performance together with gains in operating margins in spite of reduced consumer confidence due to the current macroeconomic environment. The Company s Net Revenue reported growth of 19.2% thanks to ready customer acceptance of the seasonal collections, performance leading up to Fathers Day and good allocation of merchandise at store level. Same Store Sales saw growth of 12.6% with Renner once more surpassing the IBGE s Monthly Survey of Trade Index, according to accumulated data for the apparel and footwear sector for year to August 2015 (-3.4%). Gross Profit from the Retailing Operation was R$ 662.4 million, a year-on-year growth of 21.4%. Gross Margin from the Retailing Operation posted an expansion of 1.0p.p. to 53.1%, once again reflecting benefits accruing from the Company s well organized inventory management and commercial strategy. Operating Expenses (Selling, General and Administrative) were 36.9% of Net Revenue from Merchandise Sales in line with this same item in 3Q14. This result was achieved notwithstanding startup operations at the new Santa Catarina Distribution Center and the increase in electricity charges. Adjusted EBITDA from the Retailing Operation registered expansion of 28.0%, reaching R$ 182.7 million and equivalent to an EBITDA Margin of 14.6% as opposed to 13.6% in 3Q14. Renner s Result from Financial Products for the period was in turn R$ 47.9 million, a decrease of 22.4% in relation to the same period in 2014. This result was impacted by changes in the tax treatment of financial revenues as well as being influenced by higher funding costs. Provisions linked to the growth in sales volume and slightly higher delinquency also affected this item. Losses from Renner Card business, Net of Recoveries, were 4.2% of the total portfolio. Total Adjusted EBITDA was R$ 230.5 million, a growth of 12.8% relative to the same period last year. Total Adjusted EBITDA Margin for the quarter was 18.5% against 19.5% in 3Q14, reflecting the lower Financial Products Result. In the light of the foregoing, the Company reported a Net Income of R$ 96.0 million, a growth of 15.1%. Net Margin was 7.7% compared with 8.0% for the same period in 2014. During the course of 3Q15, the Company rolled out 6 stores, 5 in the Renner format together with one additional Camicado store. Quarterly investments amounted to R$ 166.8 million versus R$ 131.6 million in 3Q14. 19
CONSOLIDATED INFORMATION (R$ MM) 3Q15 3Q14 Var. % 9M15 9M14 Var.% Net Revenue from Merchandise Sales 1,248.4 1,047.1 19.2% 3,613.5 2,972.8 21.6% Growth in Same Store Sales (%) 12.6% 7.5% - 14.4% 7.8% - Gross Profit from Merchandise Sales 662.4 545.7 21.4% 1,961.9 1,570.0 25.0% Gross Margin from Retailing Operation (%) 53.1% 52.1% 1.0p.p. 54.3% 52.8% 1.5p.p. Operating Expenses (SG&A) (461.2) (386.1) 19.4% (1,329.5) (1,102.4) 20.6% SG&A as a % of Net Revenue from Merchandise Sales (%) 36.9% 36.9% - 36.8% 37.1% -0.3p.p. Ajusted EBITDA from Retailing Operation 182.7 142.7 28.0% 585.5 412.0 42.1% Ajusted EBITDA Margin from Retailing Operation (%) 14.6% 13.6% 1.0p.p. 16.2% 13.9% 2.3p.p. Financial Products Result 47.9 61.7-22.4% 169.9 175.5-3.2% Ajusted Total EBITDA (Retail + Financial Products) 230.5 204.3 12.8% 755.5 587.5 28.6% Ajusted Total EBITDA Margin (%) 18.5% 19.5% -1.0p.p. 20.9% 19.8% 1.1p.p. Net Income 96.0 83.4 15.1% 327.3 252.8 29.5% Net Margin (%) 7.7% 8.0% -0.3p.p. 9.1% 8.5% 0.6p.p. ROIC (%) 3.9% 4.0% -0.1p.p. 13.1% 12.2% 0.9p.p. Businesses Breakdown - 3Q15 Stores in Operation 264 64 28 Selling Area (thousand m²) 481.1 29.0 3.8 Net Revenue (R$ MM) 1,168.5 70.6 9.3 % of Growth 18.0% 33.4% 101.8% Gross Margin (%) 53.5% 45.0% 56.1% Net Revenue from Merchandise Sales was R$ 1,248.4 million in 3Q15, a year-on-year growth of 19.2%, reflecting the consumer response to seasonal collections and good sales performance leading up to Fathers Day. Discerning product allocation at store level as well as the execution of operations at the retailing units as a whole also contributed to this result allowing the Company again to surpass the accumulated Federal Government s Statistics Office s (IBGE) Monthly Survey of Trade indices up to August (-3.4%). In 9M15, Net Revenue from Merchandise Sales was R$ 3,613.5 million, a growth of 21.6% in relation to 9M14. Same Store Sales in 3Q15 reported growth of 12.6% against 7.5% in 3Q14, and in 9M15 of 14.4% vis a vis 7.8% in the same period in 2014. Gross Profit from Merchandise Sales in 3Q15 was R$ 662.4 million, 21.4% higher than recorded for 3Q14. Consequently, the Gross Margin from the Retailing Operation reached 53.1%, an improvement of 1.0p.p. compared with 3Q14, driven by wellimplemented inventory management, by adjusted distribution of products at stores in addition to the Company s commercial strategy itself. Improved margins both at Camicado and Youcom also boosted these results. In 9M15, Gross Profit from Merchandise Sales was R$ 1,961.9 million while Gross Margin from the Retailing Operation registered 54.3%. Operational Expenses 3Q15 3Q14 Var. % 9M15 9M14 Var. % In the context of (R$ MM) Operational Operational Expenses (SG&A) (461.2) (386.1) 19.4% (1329.5) (1102.4) 20.6% Expenses, Selling % Over Net Revenue from Merchandise Sales 36.9% 36.9% - 36.8% 37.1% -0.3p.p. Expenses, in 3Q15 Selling Expenses (339.1) (287.4) 18.0% (990.4) (829.7) 19.4% were R$ 339.1 million, equivalent to 27.2% General and Administrative Expenses (122.1) (98.8) 23.6% (339.1) (272.7) 24.4% of Revenue from Other Operating Expenses (18.5) (16.9) 9.4% (46.9) (55.5) -15.6% Merchandise Sales, a dilution of 0.2p.p. Management Remuneration (2.3) (2.1) 8.7% (7.3) (8.2) -11.0% against 3Q14, Tax Expenses (11.1) (8.5) 30.4% (30.7) (23.4) 31.6% notwithstanding higher electricity Employee Profit Sharing (8.9) (10.1) -11.5% (32.2) (31.8) 1.3% charges. General Recovery of Tax Credits 20.6 5.9 248.6% 41.5 8.9 368.8% and Administrative Expenses, in turn, Other Operating Expenses (16.7) (2.1) 700.0% (18.2) (1.0) 1686.4% were R$ 122.1 million Total Operational Expenses (479.7) (403.1) 19.0% (1376.4) (1158.0) 18.9% in the quarter. This represented 9.7% of Revenue from Merchandise Sales in relation to 9.5% for the same period in the preceding year, by and large, affected by 20
higher logistics expenses due to the rollout of the new Santa Catarina Distribution Center, the latter already at the operating stage. In 9M15, Selling Expenses were R$ 990.4 million, representing 27.4% of Revenue from Merchandise Sales. General and Administrative Expenses were R$ 339.1 million, equivalent to 9.4% of Revenue from Merchandise Sales. Other Operational Expenses amounted to R$ 18.5 million in 3Q15 against R$ 16.9 million in 3Q14 and benefiting from the recovery in tax credits. In 9M15, Other Operational Expenses totaled R$ 46.9 million compared with R$ 55.5 million. Improving levels of sales and the increase in gross margin, albeit slightly offset by the impact of expenses on revenue, were instrumental in raising Adjusted EBITDA from the Retailing Operation to R$ 182.7 million, a year-on-year growth of 28.0%. Adjusted EBITDA Margin from the Retailing Operation was 14.6% against 13.6% in 3Q14. In 9M15, Adjusted EBITDA from the Retailing Operation was R$ 585.5 million while the same Adjusted EBITDA Margin from the Retailing Operation was 16.2% against 13.9% for the 9M14 period. FINANCIAL PRODUCTS RESULTS Financial Products Result Breakdown (R$ MM) 3Q15 3Q14 Var. % 9M15 9M14 Var. % Revenues, Net of Funding and Taxes 161.5 151.0 7.0% 481.5 411.5 17.0% Renner Card (Private Label) 81.6 89.2-8.5% 254.7 247.6 2.9% Co-branded Card Meu Cartão 51.1 35.9 42.3% 142.9 90.3 58.3% Quick Withdrawal and Insurances 28.8 25.9 11.4% 83.9 73.6 14.0% Credit Losses, Net of Recoveries (76.3) (51.9) 47,2% (196.2) (135.1) 45.2% Renner Card (Private Label) (41.7) (29.9) 39.3% (111.6) (82.8) 34.7% Co-branded Card Meu Cartão (22.8) (14.4) 58.8% (55.3) (34.3) 61.3% Quick Withdrawal (11.9) (7.6) 55.0% (29.3) (18.0) 63.1% Operating Expenses (Cards and Other Products) (37.4) (37.4) -0.2% (115.4) (100.9) 14.3% Renner reported a 3Q15 Result from Financial Products of R$ 47.9 million, against R$ 61.7 million in 3Q14. The inferior result in relation to the preceding year was largely due to new PIS/COFINS tax charges levied on financial income. The Result was also adversely affected by funding costs as Financial Products Result 47.9 61.7-22.4% 169.9 175.5-3.2% well as increased provisions set aside to % of Company's Total Adjusted EBITDA 20.8% 30.2% -9.4p.p. 22.5% 29.9% -7.4p.p. allow for growth in sales volume for the period. The higher delinquency rates, aligned with the current macroeconomic environment, also impacted it. In the nine month period, the Result from Financial Products reached R$ 169.9 million, representing 22.5% of the Company s Total EBITDA. Revenue, Net of Funding and Taxes were R$ 161.5 million in 3Q15, a 7.0% improvement over the same period in 2014, principally reflecting the growth in Meu Cartão. Conversely, revenues from the Private Label card were influenced by new tax charges, the higher cost of funding and by a reduction in the average term for receivables. In 9M15, Revenue, Net of Funding and Taxes was R$ 481.5 million, a growth of 17.0% against 9M14. Credit Losses, Net of Recoveries totaled R$ 76.3 million, a growth of 47.2% in relation to 3Q14, given the greater provisioning requirements for the Private Label business due to the increase in sales for the period and a reduction in recoveries for terms in excess of 180 days. The deterioration in the overdue portfolios for all products, principally the Saque Rápido product, were also critical factors to this result and the higher delinquency rates showed in the three products were in line with the macroeconomic scenario as well as with the Company s historical levels. In the first nine months of the year, Credit Losses, Net of Recoveries were R$ 196.2 million, 45.2% greater than 9M14. At the end of September, the total number of Renner Cards issued amounted to 25.6 million, accounting for 49.8% of merchandise sales during the course of 3Q15 compared with 50.9% in 3Q14. Of this participation, 39.7% originated from sales under the interest free 0+5 installment credit plan and 10.1% under the interest bearing 0+8 installment credit plan. The average Renner Card Sales Ticket was R$ 177.97 in 3Q15, 5.2% higher than the R$ 169.24 reported in 3Q14. In turn, the Company s average ticket was R$ 130.62, 6.2% higher than the R$ 122.96 in 3Q14, reflecting greater store traffic and an increase in the numbers of new customers who have still to make their first sales transaction using the Card. Losses from Renner Card business, Net of Recoveries were 4.2% of the total portfolio in 3Q15, versus 3.4% in 3Q14, in large part due to greater provisioning in line with a 19.2% growth in sales during the period as well as a reduction in recoveries. In the first nine months of the year, Losses from Renner Card business, Net of Recoveries reached 11.3% of the total portfolio against 9.4% in 9M14. 22.8% 24.1% 22.5% 21.5% 22.2% 20.3% 20.3% 21.1% 21.3% 3.6% 4.6% 5.1% 2.8% 2.8% 2.8% 2.8% 3.4% 4.2% 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 Percentage of Past Dues Over the Total Portfolio Credit Losses Over the Total Portfolio, Net of Recoveries 21
23.8% 24.8% 20.6% 21.6% 22.7% 6.3% 5.3% 3.8% 5.0% 5.6% 3Q11 3Q12 3Q13 3Q14 3Q15 Percentage of Past Dues Over the Total Portfolio Credit Losses Over the Total Portfolio, Net of Recoveries In September 2015, Renner had issued 1.8 million Meu Cartão credit cards, a growth of 43.3% in the portfolio, card sales reporting R$ 408.3 million for the quarter. Quarterly revenue was R$ 51.1 million, 42.3% greater than recorded in the same period in the preceding year. In 9M15, revenue amounted to R$ 142.9 million. Losses from the Co-branded Portfolio, Net of Recoveries in 3Q15 were 5.6% of the total portfolio value against 5.0% in the same period in 2014. In 9M15, Net Losses on the total Co-branded Portfolio were 13.5% against 12.0% in 9M14. The total Saque Rápido portfolio (quick cash 21.1% 20.1% withdrawal facility) amounted to R$ 194.3 million at 17.3% 18.1% 16.5% 16.2% 15.8% the end of September 2015 (R$ 134.7 million when 14.9% 17.6% adjusted to present value), versus R$ 180.6 million for 3Q14. Losses from the Saque Rápido facility, Net of 8.5% Recoveries in 3Q15 were 6.1% on the total portfolio against 4.2% in 3Q14. For this same item in 9M15, the percentage was 15.1% against 10,0% in 9M14. This 3Q07 5.7% 3Q08 6.0% 3Q09 5.0% 3Q10 5.8% 3Q11 4.4% 3Q12 4.2% 3Q13 4.2% 3Q14 6.1% 3Q15 increase reflects provisioning due to higher losses given the characteristics of this product and a little Percentage of Past Dues Over the Total Portfolio Credit Losses Over the Total Portfolio, Net of Recoveries more than the Company s estimates of delinquencies for the product although in line with the existing macroeconomic climate. Operational Expenses for Financial Products amounted to R$ 37.4 million and in line with this same item in 3Q14. In 9M15, these expenses were R$ 115.4 million, an increase of 14.3% in relation to 9M14. Accounts Receivable Sep.15 Dec.14 Sep.14 (R$ MM) Renner Card (Private Label) - Total Portfolio (Adjusted to Present Value) 990.7 1,205.3 878.1 Renner Card (Private Label) - Net Portfolio 883.0 1,088.2 779.0 On Due Receivable 804.0 1,094.0 712.8 Overdue Receivable 210.9 144.4 185.4 Present Value Adjustment (24.2) (33.1) (20.1) Allowance for Losses to the Realizable Value (63.9) (58.9) (57.4) Others (43.8) (58.2) (41.8) Meu Cartão (Co-Branded) - Total Portfolio 408.3 338.0 285.0 Meu Cartão (Co-Branded) - Net Portfolio 389.4 326.1 272.3 On Due Receivable 315.5 281.0 223.5 Overdue Receivable 92.7 57.0 61.5 Allowance for Losses to the Realizable Value (18.9) (11.9) (12.7) Quick Withdrawal - Total Portfolio 194.3 168.9 180.6 On September 30, 2015, Customer Accounts Receivable totaled R$ 1,670.8 million, 19.8% more than the position in September 2014. This increase is in line with sales growth in the period and breaks down into R$ 883.0 million for the Renner Card (Private Label), R$ 389.4 million for Meu Cartão (Co-Branded) and R$ 159.5 million for Saque Rápido. Third Party Card Companies and Other Accounts Receivable totaled R$ 238.7 million. Quick Withdrawal - Net Portfolio 159.5 141.7 154.9 Fees and Transactions Receivable 194.3 168.9 180.6 Allowance for Losses to the Realizable Value (34.8) (27.2) (25.6) Total Third-Party Credit Card Companies 232.6 347.6 186.9 Other Accounts Receivable 6.1 4.9 2.0 Total Credit Portfolio, Net 1,670.8 1,908.5 1,395.2 22
TOTAL ADJUSTED EBITDA: RETAILING AND FINANCIAL PRODUCTS EBITDA Reconciliation (R$ MM) In the light of the foregoing factors - generating notable gains in margin for the Retailing Operation, Total Adjusted EBITDA reached R$ 230.5 million, growth of 12.8%. Total Adjusted EBITDA Margin was 18.5%, 1.0p.p. less than the margin for 3Q14 due to the decline in results for Financial Products. In 9M15, Total Adjusted EBITDA was R$ 755.5 million, a growth of 28.6% and Total Adjusted EBITDA Margin was 20.9% against 19.8% for 9M14. *Pursuant to Article 4 of CVM Instruction 527, the Company has chosen to show its Adjusted EBITDA as in the above table in order to provide the information that best reflects the gross operational cash generation from its activities. These adjustments are based on: a) the Stock Option Plan corresponding to the fair value of the respective financial instruments recorded pro rata temporis, during the period services are rendered and offset by the Equity Capital Reserve and thus not representing a cash outflow; b) Statutory Participations are of a contingent nature and are related to the generation of profits pursuant to Article 187 of Law 6.404/76; and c) the Write-off of Fixed Assets relates to the results recorded from the divestment or write-off of fixed assets, largely without a cash. NET FINANCIAL RESULT 3Q15 3Q14 9M15 Net Income 96.0 83.4 327.3 252.8 ( + )Income and Social Contribution Taxes 33.8 36.1 133.1 103.4 ( + )Financial Result, Net 26.9 22.4 80.7 58.9 ( + )Depreciation and Amortization 68.2 55.0 193.3 155.0 Total EBITDA 224.9 196.9 734.4 570.1 ( + ) Stock Option Plan 5.5 7.3 19.5 17.2 ( + ) Result on Disposal or Write-Off of Fixed Assets 0.1 0.1 1.6 0.2 Total Adjusted EBITDA* 230.5 204.3 755.5 587.5 1H14 Total Adjusted EBITDA Margin 18.5% 19.5% 20.9% 19.8% Financial Result, Net (R$ MM) 3Q15 3Q14 Var. % 9M15 9M14 Var. % Financial Income 13.5 13.5-0.1% 43.0 42.8 0.5% Gains on Cash Equivalents 13.3 13.4-0.8% 42.7 42.3 1.0% Other finance income 0.2 0.1 81.8% 0.4 0.6-32.2% Financial Costs (44.5) (37.1) 19.9% (134.5) (105.9) 27.0% Interest on Loans, Debentures and Borrowings (39.5) (31.9) 23.6% (120.0) (92.3) 30.0% Other Finance Costs (5.0) (5.2) -3.0% (14.5) (13.6) 6.3% Exchange Variation, Net 0.8 0.0 4472.2% 3.5 0.1 3838.2% Hedge Operations (Debt Swap), Net 3.2 1.2 177.8% 7.2 4.1 76.6% Financial Result, Net (26.9) (22.4) 20.3% (80.7) (58.9) 37.0% In 3Q15, the Company reported a negative Net Financial Result of R$ 26.9 million compared with a negative R$ 22.4 million in 3Q14, largely a reflection of higher interest rates during the quarter in relation to the same quarter in 2014. In the first nine months of 2015, the Company registered a negative Net Financial Result of R$ 80.7 million. NET DEBT Net Debt (R$ MM) Sep.15 Dec.14 Sep.14 Borrowings and Financing (1,032.3) (1,142.2) (1,076.2) Current (290.7) (210.2) (191.2) Noncurrent (741.6) (932.0) (885.0) Cash and Cash Equivalents 559.6 834.3 626.5 Net Debt (472.7) (307.9) (449.7) Net Debt / Total Adjusted EBITDA (12M) 0.39x 0.29x 0.46x Operational Financing (845.8) (758.8) (702.3) Current (430.7) (345.2) (289.1) Noncurrent (415.1) (413.7) (413.2) Net Debt (Including Operational Financing) (1,318.4) (1,066.7) (1,152.0) As at September 30, 2015, Renner s Net Debt stood at R$ 472.7 million. This debt reflects capital management decisions adopted by the Company and is currently made up of debentures issued in the past few years and by loans from the Brazilian Development Bank BNDES and the Banco do Nordeste in addition to working capital lines to Camicado. Thus, Debt servicing charges are booked to the Net Financial Result. Operational Financing liabilities are linked to Financial Products and Imports, the costs of which are reflected in the Operational Result. 23