411 3 t12_arezzo_apresentacao_call_eng
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411 3 t12_arezzo_apresentacao_call_eng Presentation Transcript

  • 1. | Apresentação do Roadshow Conference Call 3Q12 1
  • 2. Important DisclaimerInformation contained in this document may include forward-looking statements and reflect Management’s current viewand estimates of the evolution of the macroeconomic environment, industry conditions, Company’s performance andfinancial results. Any statements, expectations, capabilities, plans and assumptions contained in this document, which donot describe historical facts, such as information about declaration of dividend payment, future direction of operations,implementation of relevant operating and financial strategies, investment program and factors or trends affecting thefinancial condition, liquidity or results of operations, are forward-looking statements, as set forth in the “U.S. PrivateSecurities Litigation Reform Act of 1995”, and involve several risks and uncertainties. There is no guarantee that theseresults will occur. Forward-looking statements are based on several factors and expectations, including economic andmarket conditions, industry competitiveness and operational factors. Any changes in such expectations and factors maycause actual results to differ from current expectations.The Company’s consolidated financial statements presented herein are in accordance with the International FinancialReporting Standards - IFRS, issued by the International Accounting Standards Board - IASB, based on the auditedfinancial statements. Non-financial information and other operating information have not been subject to an audit byindependent auditors. 2
  • 3. 3Q12 HighlightsGross Gross Revenue increased by 31.7% in 3Q12, reaching R$314.1 millionRevenueGross Profit Gross Profit reached R$ 107.0 million, 35.6% growth and 43.4% marginEBITDA EBITDA totaled R$ 42.7 million, increase of 20.0% and 17.3% marginNet Profit R$28.6 million net profit, with 11.6% margin and growth of 10.2% Opening of 18 stores in Brazil: 5 Arezzo franchises, 12 Schutz stores (10 franchises and 2 ownedExpansion stores) and 1 Alexandre Birman owned store 3
  • 4. Company GrowthGross Revenues – (R$ million) 28.8% 781.7 606.8 31.7% -4.4% 29.9 314.1 31.3 238.5 9.8% 30.6% 751.8 12.7 575.5 11.5 32.8% 301.4 226.9 3Q11 3Q12 9M11 9M12 Domestic Market Exports MarketThe Company’s Gross Revenues amounted to R$314.1 million in the third quarter of 2012, a31.7% growth when comparing with 3Q11 4
  • 5. Gross Revenue Breakdown by Channel –Domestic MarketGross Revenue by channel – Domestic Market (R$ million) 30.6% 751. 8 10.7 575.5 167.7 79.6% 32.8% 4.8 301.4 93.3 20.3% 212.9 226.9 81.8% 177.1 20.0% 4.2 2.0 20.1% 63.0 34.6 83.2 69.2 360.5 300.4 24.9% 121.0 151.1 3Q11 3Q12 9M11 9M12 Franchise Multi-brand Owned Stores Others¹SSS Sell-out (owned stores) 0.4% 6.8% 9.6% 9.9%SSS Sell-in (franchises) 11.6% 14.2% 15.6% 11.9%Over 20.0% growth in all channels, emphasizing Owned Stores increase of 81.8% in 3Q12,and a more intensive presence of Schutz in the franchises channel 1) Other: Growth of 103.4% in 3Q12 and of 122.6% in 9M12. 5
  • 6. Gross Revenue Breakdown by Brand –Domestic MarketGross Revenues by brand – Domestic Market (R$ million) 30.6% 751.8 575.5 33.8 32.8% 244.3 301.4 20.2 56.8% 155.8 226.9 67.5% 18.6% 14.0 8.4 99.3 473.7 59.3 18.2% 399.5 159.2 188.1 3Q11 3Q12 9M11 9M12 Arezzo Schutz Others¹Solid performance of all brands, specially for Schutz brand, whose gross revenue growthstood by 67.5% in 3Q12 and by 56.8% in 9M12.1) Other: Alexandre Birman’s and Anacapri’’s Gross Revenue: growth of 67.1% in 3Q12 and of 67.1% in 9M12. 6
  • 7. Distribution Channel Expansion Owned Stores and Franchises Expansion 24.2% 15.5% 19.8% 23.9 Franchises 300 . 19.3 Owned Stores¹ 19 . Multi Brands² 911 16.7 368 13.9 +57 311 52 280 +31 Franchises 16 246 +34 36 27 Owned Stores¹ 24 17 Multi Brands² 1,601 316 253 275 229 Owned Stores 2 Multi Brands² 13 3Q09 3Q10 3Q11 3Q12 Owned Stores 7 Franchises Owned Stores Total m² Multi Brands² 768 The Company ended 3Q12 with 368 stores and sales area expansion of 24.2% comparing with the same period of the previous yearNote: area given in thousand of square meter (sq m)1) Includes 5 outlets with total area of 1,334 sq m2) Domestic Market 7
  • 8. Gross Profit and EBITDAGross Profit (R$ million) EBITDA (R$ million) 43.5% 18.8% 43.4% 41.9% 17.6% 41.8% 264.2 17.3% 15.1% 201.1 31.4% 92.0 35.6% 84.6 8.8% 107.0 20.0% 78.9 42.7 35.5 3Q11 3Q12 9M11 9M12 3Q11 3Q12 9M11 9M12 Gross Profit Gross Margin EBITDA EBITDA MarginGross margin expansion of 1.6 p.p., due to a change in the distribution channel mix. EBITDAreached 42.7 million in 3Q12, increasing by 20.0% against 3Q11. Excluding the 1Q12 non-recurring effect EBITDA would be R$ 100.0 with 16.5% margin 8
  • 9. Net IncomeNet Income (R$ million) 13.7% 13.5% 11.6% 10.7% 64.7 65.2 10.2% 0.8% 28.6 25.9 3Q11 3Q12 9M11 9M12 Net Income Net MarginCompany´s Net Income increased 10.2%, amounting R$ 28.6 million, with 11.6% margin in3Q12. Excluding non-recurring impact in 1Q12, Net Income would have reached R$ 70.5,million, with 8.9% growth and 11.6% net margin 9
  • 10. Cash GenerationOperating Cash Generation (R$ thousand) Growth or Growth orCash flows from operating activies 3Q11 3Q12 9M11 9M12 spread spreadIncome before income taxes 38,854 42,289 3,435 90,520 91,620 1,100Depreciation and amortization 1,050 2,043 993 2,890 5,209 2,319Others (1,680) (1,032) 648 (7,943) (6,679) 1,264Decrease (increase) in current assets / liabilities (38,949) (36,065) 2,884 (28,200) (9,546) 18,654 Trade accounts receivable (51,314) (50,566) 748 (27,418) (21,771) 5,647 Inventories (3,983) (17,341) (13,358) (22,820) (26,028) (3,208) Suppliers 12,778 21,837 9,059 21,306 27,879 6,573 Change in other current assets and liabilities 3,570 10,005 6,435 732 10,374 9,642Change in other non current assets and liabilities (946) (757) 189 (2,119) (2,385) (266)Tax and contributions (6,363) (10,166) (3,803) (14,703) (21,818) (7,115)Net cash generated by operating activities (8,034) (3,688) 4,346 40,445 56,401 15,956Throughout the second half of the year, summer collection products are distributed amongseveral channels, increasing the company’s receivables. Net cash consumed from operatingactivities totaled R$ 3.7 million in 3Q12 10
  • 11. Capital Expenditure (CAPEX) andIndebtednessCAPEX (R$ million) Indebtedness (R$ million) 48.3 Indebtedness 3Q11 2Q12 3Q12 185.2% 1.3 Cash 178,999 205,819 175,605 15.7 Total indebtedness 35,065 51,117 55,199 Short term 16,270 25,548 30,626 71.5% 16.5 As % of total debt 46.4% 50.0% 55.5% 16.9 Long term 18,795 25,569 24,573 0.8 0.7 31.3 As % of total debt 53.6% 50.0% 44.5% 9.6 5.4 4.0 0.3 Net debt (143,934) (154,702) (120,406) 1.5 10.3 12.2 7.9 EBITDA LTM 115,562 118,007 125,1283Q11 3Q12 9M11 9M12 Net debt /EBITDA LTM -1.2x -1.3x -1.0x Stores Corporate Others¹Arezzo&Co invested R$ 16.5 million in 3Q12, of which R$ 10.3 million in stores, including 4openings and expansion stores, and 4 other refurbishments not yet inaugurated. Corporateinvestment is mainly related to the new Company’s head office, in Campo Bom - RS1) Other: Increase of 179.4% in 3Q12 and of 72.0% in 9M12 compared with the same period of the previous year. 11
  • 12. 2013 Opening Guidance # Owned Store 445 # Franchises 47 392 6 60 54 +13% 385 338 2012 2013The 2013 expansion pipeline is committed to opening 53 new stores with a 15% growth in 2012 2013total sales area, anchored by openings and expansion of existing stores. 12
  • 13. ContactsCFO and IR OfficerThiago BorgesIR ManagerDaniel MaiaPhone: +55 11 2132-4300ri@arezzoco.com.brwww.arezzoco.com.br 13