4 q11 presentation results

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4 q11 presentation results

  1. 1. 4Q11 Conference CallMarch 23. 2012
  2. 2. Highlights of 2011 and Expectations for 2012Financial PerformanceOperational Performance 2
  3. 3. Highlights of 2011 Initiatives and achievements Impacts on financial resultsSignificant sales growth Acquisition of Baú• Sales growth of 33.5% • Initial disbursement of R$80.3 million• Same store sales growth of 16.5% • Extraordinary expenses of R$30.8 million• E-commerce growth of 44.4% • R$10.5 million of investments• Maia Stores: R$1 billion in sales Integration of MaiaSustainable Growth • Decrease in sales (stores closed)• Maintenance of the Gross Margin • Extraordinary expenses of R$18.0 million• Financial discipline (sales with no interest) • R$49.5 million in investmentsConsolidation of the São Paulo Office Infrastructure investments • Logistics and IT – R$71 millionInitial Public Offering (IPO) • Extraordinary expenses at Magazine Luiza ofInvestments and expansion R$29.6 million (integration of chains)• 124 stores opened (24 organically and 100 Luizacred Results from Baú) • Conservative revenue’s recognition• 124 stores refurbished • Higher provisions than predicted • Reduction of credit approval rate 3
  4. 4. Expectations for 20121 4 Maturation of Baú’ Stores Infrastructure Investments Corporate integration – nov/11 Logistics and Technology investments Systems integration – feb/12 Budget: R$140 million People and logistic costs synergies New stores opening (20-30 stores) Constant sales growth Stores refurbishing (50-60 stores)2 5 Integration Process – Maia’ stores Luizacred Corporate integration – 2Q12 Robust provisions for loan losses Systems integration – end of 3Q12 Maintenance of credit approval rate Complete management integration – 4Q12 Improvement in profitability during 2S12 (credit Brand transition – Salvador and João Pessoa portfolio’s maturation and expenses dilution)3 6 Reduction of costs and expenses Results “Mais com Menos” (More with Less) project Sales increase (stores maturation. internet. Reduction in expenses in all departments market consolidation and Brazilian market Significant reduce in consulting and integration perspectives) expenses Sustainable results 4
  5. 5. Highlights of 2011 and Expectations for 2012Financial PerformanceOperational Performance 5
  6. 6. Gross Revenue (R$ billions) Retail 54.7% 39.4% 33.6% 17.7% 33.6% 7.1 2.1 5.3 1.8 1.8 1.3 1.6 1.2 1.0 1.61Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 4Q11 2011 Consolidated 51.6% 38.2% 33.8% 19.6% 33.5% 7.6 5.7 2.3 1.9 1.9 1.4 1.7 1.31.1 1.71Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 4Q11 2011 % of growth over same period of 2010 6
  7. 7. Gross Revenue – Maia and Internet (R$ millions) Lojas Maia 99.8% 63.9% 58.2% 14.0% 52.2% 992.1 257.8 651.8 243.6 226.2 154.0 237.4 144.9 253.2126.71Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 4Q11 2011 Internet 58.2% 39.9% 48.0% 36.4% 44.4% 821.1 250.9 568.7 184.0 214.4 144.8 181.7 129.9110.0 174.01Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 4Q11 2011 % of growth over same period of 2010 7
  8. 8. Net Revenue and Gross Profit (R$ billion)Net Revenue - Consolidated 50.5% 37.3% 33.8% 20.8% 33.5% 6,4 4.8 1,9 1.6 1,6 1.2 1,5 1.1 0.9 1,4 1Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 4Q11 2011Gross Profit - Consolidated 38.6% 31.0% 26.8% 28.2% 30.6% 2.1 1.6 0.7 0.5 0.5 0.4 0.5 0.4 0.3 0.5 1Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 4Q11 2011 36.0% 34.3% 34.5% 32.6% 34.1% 33.2% 32.8% 32.7% 34.7% 33.4% % of growth over same period of 2010 Gross Margin (%) 8
  9. 9. Operating and Financial Expenses (R$ millions) Operating Expenses (R$ MM) Financial Expenses (R$ MM)24.5% 25.8% 25.1% 25.3% 2.9% 2.1% 2.9% 2.6% 1,625.6 165.7 22% 141.5 1,209.0 21% 78% 79% 47.0 498.0 40.2390.5 24% 26% 74% 76%4Q10 4Q11 2010 2011 4Q10 4Q11 2010 2011 General and Administrative Sales % Net Revenue Financial Expenses % Net Revenue 9
  10. 10. EBITDA and Net Income (R$ millions) EBITDA – Consolidated 38.8% 2.1% -2.0% -44.7% -6.0% 319.9 300.6 94.9 52.5 94.0 92.2 70.5 71.960.5 84.01Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 4Q11 20116.4% 6.6% 7.9% 5.9% 6.7% 5.9% 4.9% 5.8% 2.7% 4.7%Net Income - Consolidated 31.7% -71.2% -49.4% -182.4% -83.1% 68.8 20.5 23.1 15.9 11.7 16.9 11.7 4.69.3 12.31Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 4Q11 20111.0% 1.5% 1.9% 1.3% 1.4% 0.9% 0.3% 0.7% -0.9% 0.2%% of growth over same period of 2010 Margin EBITDA (%) Net Margin (%) 10
  11. 11. Adjusted EBITDA and Net Income (R$ millions) Adjusted EBITDA 4Q11 4.7% 12M11 5.4% 346.3 2.7% 5.5% 0.0 32.6 78.3 107.0 16.1 300.6 38.3 52.5 Current Extraord. Extraord. Deferred Adjusted Current Extraord. Extraord. Deferred Adjusted Revenues Expenses Revenues EBITDA Revenues Expenses Revenues EBITDA Adjusted Net Income -0.9% 4Q11 1.4% 0.2% 12M11 0.9% 18.5 15.6 13.6 7.6 26.7 45.7 54.5 55.5 16.9 11.7Net Income Extraordinary Taxes Tax credits Adjusted Net Income Extraordinary Taxes Tax credits Adjusted Result not recorded Income Result not recorded Income % of Net Revenue 11
  12. 12. Highlights of 2011 and Expectations for 2012Financial PerformanceOperational Performance 12
  13. 13. Operational Performance – Stores Number of Stores (unit) Same Store Sales Growth (%) + 44 stores 42.7% 728 684 1 24.3% 1 103 20.4% 604 604 613 69 17.7% 1 1 1 67 67 69 10.1% 7.0% 4Q10 4Q11 614 624 536 536 543 39.1% 33.6% 29.0% 24.7% 16.5% 13.1% 4Q10 1Q11 2Q11 3Q11 4Q11 2010 2011 Site Virtual Stores Conventional Stores Same Stores Sale Growth - Physical Stores Same Store Sales Growth (includes e-commerce) Total Retail Growth 13
  14. 14. Operational Performance – Luiza Card Financed Mix Sales (%) Luiza Card – Total Credit Card Base (MM) 34,6% 4.4 4.2 28% 29% 4.0 30% 36% 39% 3.5 3.3 11% 14% 0% 13% 4% 27% 18% 35% 33% 31% 38% 38% 24% 25% 27%Total 4T10 ML 4T11 Maia 4T11 Baú 4T11 Total 4T11 4T10 1T11 2T11 3T11 4T11 Third Party Cards Luiza Card Base Total de Cartões CDC Cash Sales/ Down Payment 14
  15. 15. Luizacred Portfolio (R$ millions) Portfolio Overdue Dec 2011 Sep 2011 Jun 2011 Mar 2011 Dec 2010Total Portfolio (R$ MM) 3,334.2 100.0% 3,011.7 100.0% 2,668.3 100.0% 2,424.2 100.0% 2,359.7 100.0%000 to 014 days 2,773.8 83.2% 2,478.2 82.3% 2,155.4 80.8% 1,890.1 78.0% 1,901.7 80.6%015 a 030 days 43.2 1.3% 34.2 1.1% 78.8 3.0% 96.6 4.0% 91.0 3.9%031 a 060 days 39.5 1.2% 36.2 1.2% 51.9 1.9% 59.7 2.5% 64.8 2.7%061 a 090 days 64.4 1.9% 52.7 1.8% 48.4 1.8% 63.7 2.6% 43.3 1.8%091 a 120 days 53.2 1.6% 54.0 1.8% 45.3 1.7% 66.2 2.7% 36.2 1.5%121 a 150 days 46.4 1.4% 48.8 1.6% 47.3 1.8% 51.6 2.1% 31.4 1.3%151 a 180 days 41.9 1.3% 51.8 1.7% 51.2 1.9% 33.5 1.4% 29.1 1.2%180 a 360 days 271.8 8.2% 255.7 8.5% 190.0 7.1% 162.8 6.7% 162.2 6.9%Overdue from 15-90 days 147.0 4.4% 123.2 4.1% 179.1 6.7% 219.9 9.1% 199.0 8.4%Overdue above 90 days 413.3 12.4% 410.3 13.6% 333.8 12.5% 314.2 13.0% 259.0 11.0%Total Overdue 560.4 16.8% 533.5 17.7% 512.9 19.2% 534.1 22.0% 458.0 19.4%Allowance for doubtful 469.5 14.1% 455.7 15.1% 372.9 14.0% 333.4 13.8% 309.4 13.1%accounts in IFRSCoverage (%) 114% 111% 112% 106% 119% 15
  16. 16. Investor Relations ri@magazineluiza.com.br www.magazineluiza.com.br/irLegal DisclaimerAny statement made in this presentation referring to the Company’s business outlook. projections and financial and operating goalsrepresent beliefs. expectations about the future of the business. as well as assumptions of Magazine Luiza’s management and aresolely based on information currently available to the Company. Future considerations are not a guarantee of performance. Theseinvolve risks. uncertainties and assumptions since they refer to forward-looking events and. therefore depend on circumstances thatmay not occur. These forward-looking statements depend substantially on the approvals and other necessary procedures for theprojects. market conditions. and performance of the Brazilian economy. the sector and international markets and hence are subject tochange without prior notice. Thus. it is important to understand that such changes in conditions. as well as other operating factorsmay affect the Company’s future results and lead to outcomes that may be materially different from those expressed in such futureconsiderations. This presentation also includes accounting data and non-accounting data such as operating. pro forma financial dataand projections based on the Management’s expectations. Non-accounting data has not been reviewed by the Company’sindependent auditors. 16

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