Opening remarks 02

384 views
311 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
384
On SlideShare
0
From Embeds
0
Number of Embeds
57
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Opening remarks 02

  1. 1. October 03, 2013 Alexandre Birman CEO Arezzo&Co Investor Day Opening Remarks
  2. 2. 2 Arezzo&Co Business Highlights Arezzo&Co is a benchmark company in the Brazilian retail sector, with a unique positioning that aligns growth with high cash generation Sound Growth Strategy of consistent growth, with sales 4 times higher than the market average in the last 5 years      Unique business model in Brazil Sector leader thanks to its integrated platform Asset-light Model 87% of the stores are franchised and 90% of production outsourced Brands recognized and desired by women consumers Top-of-mind in the Brazilian women’s footwear and accessories market Consistent delivery Attractive returns and strong cash flow generation
  3. 3. 3 Arezzo&Co Platform of Benchmark Brands The Company has an exclusive portfolio of brands that are top-of-mind in the markets where it operates
  4. 4. Arezzo&Co Flexible Business Model People & Management BENCHMARK BRANDS Customer-focused: we seek to anticipate what Brazilian women want MultichannelSourcing and Logistics Communication and Marketing EXPERIENCED MANAGEMENT TEAM WITH RESULTS-BASED INCENTIVES NATIONAL DISTRIBUTION STRATEGY STREAMLINED AND EFFICIENT SUPPLY CHAIN SOUND COMMUNICATION AND MARKETING PROGRAM ABILITY TO INNOVATE R&D 1 2 3 4 5 Arezzo&Co has total control over its Value Chain, from creation of the product, to the consumer’s in-store experience
  5. 5. Arezzo&Co Flexible Business Model The Company’s know-how in managing multichannel business models is one of its key competitive differentials Franchises Owned StoresMultibrands  Enables greater brand capillarity and visibility  Rapid expansion of the brand with low investment and risk  Important sales channel for smaller cities  Optimization of the sales team: in-house team and commissioned sales representatives  Best Franchise in Brazil (2005) and in the sector for 7 years  96% of franchisee satisfaction, with a track record of 28 years  Direct interaction with customer develops retail competencies  Flagship stores ensure greater visibility and strengthen the brand image Investment in stores and working capital borne by franchisee Attractive ROIC  Capillarity in distribution  Sales ramp-up, generating business scalability High Contribution Margins  Total control of experience with the customer  Seal of Excellence in Franchising for the last 8 years (ABF) which are also reflected in franchised stores
  6. 6. 21 29 45 57 249 274 296 342 270 303 341 399 1.364 1.585 2.146 2.351 2009 2010 2011 2012 Owned Franchises Mutibrands90% 10% Outsourcing Owned factory Arezzo&Co Asset-Light Model Optimization of capital allocation using an asset-light business model, from production to distribution Outsourcing of 90% of production  Located in one of the world’s major women’s footwear clusters  High degree of specialization in certain categories  Flexible production accompanies seasonality  Quality control Outsourcing Sales leveraged through franchises and multibrands 27% of sales in the Multibrands channel in 2012 48% of sales through Franchises in 2012
  7. 7. 44,2% 101,9% 144,6% 210,9% 13,9% 31,8% 29,8% 36,5% 2009 2010 2011 2012 Arezzo&Co (proforma sell-out) Market¹ 7 Arezzo&Co Sound Growth 28,4% 33% Market CAGR Arezzo & Co. CAGR 8% 4,3x Notes: 1. Women’s footwear market in Brazil; Source: Euromonitor. Base chart 100 = 2009 2. Based on Euromonitor research and IBOPE Inteligência (Pyxis). Arezzo&Co estimate of market share for women’s footwear market Growth: Arezzo&Co. Sell-out Net Sales X Market One of the world’s largest players in women’s footwear, almost 4 times greater than market growth in the last 4 years +4% of Market Share attained in the last 5 years Evolution of Arezzo&Co. Market Share² 7% 8% 9% 10% 11% 2008 2009 2010 2011 2012
  8. 8. Arezzo&Co Consistent delivery The Company has achieved sustainable growth, while maintaining margins Notes: 1. The adjustments to EBITDA for 2012 and 1H 2012 refer to a one-off charge of R$8MM incurred when replacing a sourcing supplier. EBITDA Evolution (R$ MM) and EBITDA Margin (%) 28,4% 48,5% 57,7% 23,3% 22,1% 20,6% 41 61 95 118 144 57 69 11,1% 14,7% 16,7% 17,3% 16,7% 15,9% 15,8% EBITDA EBITDA Margin
  9. 9. Arezzo&Co Key messages The company is ready to continue growing in a consistent and efficient manner 2 3 Changes to the sell-in calendar, in preparing the collection and monitoring the sell-out 4 1 5 Growth levers: continuous focus on the right product, backed up by a multibrand and multichannel strategy Continuous strengthening of the sourcing model Consolidation and roll-out of the Anacapri brand Improvement in the Corporate Governance structure

×