3. Lojas Renner S.A.September 2019
R$ 11.4 billion
of Total Gross Revenue in 2018
4
distribution centers
(SC & RJ fully automated)
577 stores
363 Renner / 05 Ashua
113 Camicado / 96 Youcom
31.9 MM
private label cards
COMPANY OVERVIEW
20
proprietary brands
3
+210 MM
e-commerce visits in 2018
+600 thousand
customers visit our stores
daily
+5,700%
of share appreciation since
2005
R$ 40.1 billion
market capitalization
21.4 thousand
employees in 2018
Data as at September 2019
4. Lojas Renner S.A.September 2019
COMPANY OVERVIEW
4
Competitive Advantages
Consistent Positioning Clear
value proposition, with focus on women
Lifestyles
You have your style, Renner has all of them
Enchantment
To surpass customers expectations
Sales Channels Integration Omni
experience to delight our customers
8. Lojas Renner S.A.September 2019
Listed since 1967
Largest fashion retailer in
Brazil
Target customers: 18 to
39 age group, in the A-, B
and C+ social classes
363 stores
E-commerce
91% of contribution on
Consolidated Net
Revenues in 2018
8
OUR BUSINESSES
Renner
Data as at September 2019
9. Lojas Renner S.A.September 2019
Acquired in 2011
Leader in home and decor
Target customers: 18 to 39 age
group, in the A-, B and C+ social
classes
113 stores
E-commerce + Marketplace
7% of contribution on
Consolidated Net Revenues in
2018
9
OUR BUSINESSES
Camicado
Data as at September 2019
10. Lojas Renner S.A.September 2019
Launched in 2013
Specialized in young lifestyle
Target customers: 18 to 35
age group, in the A-, B and
C+ social classes
96 stores
E-commerce
2% of contribution on
Consolidated Net Revenues
in 2018
10
OUR BUSINESSES
Youcom
Data as at September 2019
11. Lojas Renner S.A.September 2019
Launched in 2016 on E-
commerce platform
Curve & plus size format
Target customers: 25 to 45 age
group, in the A-, B and C+
social classes
Sizes: from 46 to 54
5 pilot stores
E-commerce
Consolidated on Renner’s
Income Statement
11
OUR BUSINESSES
Ashua
Data as at September 2019
12. Lojas Renner S.A.September 2019
Financial Institution established in
2017
Features and services to leverage
consumer experience
Used as a loyalty tool to boost retail
sales
Segregated digital platform with
flexible tech infrastructure
+12 million customers that are able
to buy and recognized brand
Private Label Card, Co-branded
Card, and Insurances & Assistances
offered
Total credit portfolio of R$ 2.8
billion
12
OUR BUSINESSES
Realize CFI
Data as at September 2019
14. Lojas Renner S.A.September 2019
Source: Statista and Players’ Website
4.7%
10.0%
18.0%
12.2%
Apparel market by country & market share of main players
14
(Gross Revenues in U$ billion)
APPAREL RETAIL
We still have plenty of room to grow
15. Lojas Renner S.A.September 2019
Other
Retailers
1° Renner
2° C&A
3° Riachuelo
4° Pernambucanas
5° Marisa
16%
Market Concentration of Other Sectors in Brazil
Other
Retailers
+
Informality
12%
Source: Jornal DCI, IBOPE, Euromonitor, IBGE, Bank of America Merril Lynch and Lojas Renner estimates.
Note: Data for C&A and Pernambucanas are estimated.
Drugstores top 3 = 24%
20% of existing
stores closed
between 2014 and
2017
Eletroelectronics top 5 = 50%
Supermarkets top 5 = 50%
Apparel Market Concentration
15
APPAREL RETAIL
In a fragmented apparel market with opportunities for consolidation
16. Lojas Renner S.A.September 2019
Source: JPM – Brazil Apparel – Diving into online channel 06.14.2018
UBS – Brazil eCommerce – UBS Evidence Lab Inside: Like for Likes (Vol II) – 08.20.2019
16
Apparel Online Penetration Sales over Total Retail Sales in 2018
2X
over the
next 5 yrs
APPAREL RETAIL
And great prospects in the online segment
18. Lojas Renner S.A.September 2019
20%
16%
12%
8%
5%
Fonte: JPM – Brazil Apparel – Diving into online channel 06.14.2018
Others 15%
Auto 2%
Sports Goods 4%
Beauty 5%
Apparel 6%
Furniture 8%
Eletroelectronics60%
ALTHOUGH E-COMMERCE PENETRATION IN BRAZIL IS STILL LOW, IT IS GROWING
CONSISTANTLY
18
Total E-commerce Penetration Apparel Participation in E-commerce Sales
19. Lojas Renner S.A.September 2019
AND BENCHMARKS SUGGEST A BALANCE BETWEEN ONLINE / OFFLINE CHANNELS
19
WOULD BE VERY SATISFIED | EXPECTS TO BE OFFERED | INDIFERENT
42%
45%
13%
34%
52%
14%
34%
50%
16%
31%
60%
9%
53%
33%
14%
42%
46%
12%
50%
30%
20%
45%
30%
25%
43%
35%
22%
43%
43%
14%
57%
25%
18%
54%
36%
10%
Source: UBS Evidence Lab. / Identifying Mispricings from eCommerce Disruption 06.20.2018 – 2,500 respondents.
Store pick up Store returns
Opinions on pick ups and returns in stores
20. Lojas Renner S.A.September 2019
WITH NO MEANING DIFFERENCES BY AGE GROUPS
20
18-21 22-30 31-38 39-53
BUY IN STORE | SEARCH ONLINE & BUY IN STORE | SEARCH IN STORE & BUY ONLINE | BUY ONLINE
54+
41%
22%
13%
24%
38%
22%
14%
26%
37%
22%
15%
27% 23%
13%
19%
44% 48%
17%
12%
23%
Source: Merrill Lynch – Gen Z is changing the landscape again 04.16.2018
Purchase Journey by Age
Survey with 39,554 participants (USA)
21. Lojas Renner S.A.September 2019
0% 10% 20% 30% 40% 50% 60% 70%
Acessories
Shoes
Sporting Goods
Appliances
Groceries
Bath & Bedding
Furniture
Home Improvements
Toys
Personal Care Products
Power Tools
Eletronics
Household Products
Auto Parts
Books
Office Supplies
Pet Supplies
Source: UBS Evidence Lab. / Identifying Mispricings from eCommerce Disruption 06.20.2018 – 2,500 respondents
BECAUSE THEY VALUE THE INTERACTION WITH APPAREL PRODUCTS BEFORE PURCHASING IT
Clothing
21
(USA)
Q: What are the main reasons why you don’t buy more of these products online?
R: Like to see, touch or try
22. Lojas Renner S.A.September 2019
Digital cycle
STRATEGIC PRIORITIES
22
Omni Transformation
CHANNELS INTEGRATION
Create a single shopping
experience
Data Driven Decision on
Product Lifecycle
PRODUCT DEVELOPMENT
Apply technology in
collections
Customer Single-View
CUSTOMER INTERACTIONS
Transforming data in
actions
Renner Structural Projects Under Development
1
23. Lojas Renner S.A.September 2019
M A X I M A Z I N G
C O M M U N I C A T I O N
W I T H I D E N T I F I E D
C U S T O M E R S
I D E N T I F Y I N G
U N K N O W N
C U S T O M E R S
C R E A T I N G A
P E R S O N A L I Z E D
A N D C O N S I S T E N T
B A S E O F
C U S T O M E R
R E L A T I O N S H I P
STRATEGIC PRIORITIES
23
• Big data
• Identification of unknown
customers
• Personalized communication
• Personalized shopping
experience
DETERMINED GOALS THROUGH...
Customer Single-View
Digital cycle
24. Lojas Renner S.A.September 2019
I M P R O V I N G T H E
P R O C E S S I N
C H O O S I N G T H E
F A S H I O N T R E N D S
B A S E D O N
P R E D I C T I V E
A N A L Y S I S
A P P L Y I N G M O R E
I N T E L L I G E N C E O N
T H E A S S O R T M E N T &
D I S T R I B U T I O N
P R O C E S S W I T H H I G H
A S S E R T I V E N E S S B Y
S K U P E R S T O R E
D O M I N A T I N G
T H E S U P P L Y
C H A I N T O G E T
M O R E A G I L I T Y
O N T H E
D E C I S I O N
M A K I N G
P R O C E S S
A C T I N G O N C O S T U M E R S
F E E D B A C K S
24
STRATEGIC PRIORITIES
• Artificial Intelligence
• Algorithms
• Prediction
• Assertiveness
• Agility on decisions
• Lower inventories
Data Driven Decision on Product Lifecycle
Digital cycle
DETERMINED GOALS THROUGH...
25. Lojas Renner S.A.September 2019
I N V E N T O R Y
O R C H E S T R A T I O N
P R O C E S S
A D E Q U A T I N G T H E
S A L E S C H A N N E L S
( P H Y S I C A L
I N F R A S T R U C T U R E
S Y S T E M S &
P R O C E S S E S )
E Q U A L I Z I N G T H E
C O M M E R C I A L P O L I C I E S
F O R T H E D I F F E R E N T
C H A N N E L S ( P R I C I N G &
P A Y M E N T C O N D I T I O N S )
D E L I V E R I N G
A N D
O M N I C H A N N E L
A F T E R - S A L E S
E X P E R I E N C E
STRATEGIC PRIORITIES
25
• Use of stores’ inventory
• Faster deliveries
• Lower delivery cost
• Equalization of sales channels
• Convenience, mobility and
flexibility
• Fluid and enchanting sales
experience
Omni transformation
Digital cycle
DETERMINED GOALS THROUGH...
26. Lojas Renner S.A.September 2019
C U S T O M E R
S I N G L E V I E W
D A T A D R I V E N
D E C I S I O N T O T H E
W H O L E P R O D U C T
L I F E C Y C L E
O M N I
T R A N S F O R M A T I O N
+ +
B E T T E R
S H O P P I N G
E X P E R I E N C E
G E N E R A T I N G
M O R E R E S U L T S
=
STRATEGIC PRIORITIES
26
Renner structural projects
Market Share
Speed to Market
Operational Efficiency
Digital cycle
27. Lojas Renner S.A.September 2019
C U S T O M E R
S I N G L E - V I E W
D A T A D R I V E N D E C I S I O N T O
T H E W H O L E P R O D U C T
L I F E C Y C L E
O M N I
T R A N S F O R M A T I O N
+ +
STRATEGIC PRIORITIES
- Data Lake with customers’
information already in place
- In process of cleaning and
conciliating information
- Customer data should be ready by
the end of 2019
- Already working to attend the
LGPD demands
- Testing the automated allocation of
products
- No human intervention
- Limited number of SKUs
- Predicting sales forecasts
- RFID rollout to be concluded by the end of
2019
- Testing Order Mgmt. System to use
products from stores’ inventories
- Click & Collect represents 30% of online
sales
- 10% of these generate an additional
purchase in store, with a +20% ticket
27
Renner Structural Projects – Current Status
Digital cycle
28. Lojas Renner S.A.September 2019
STRATEGIC PRIORITIES
Market Consolidation
Source: IBOPE 2017 and Renner database
28
EXISTING STORES
Increase sales density
Store park maturation
Consolidate the fragmented
market
Gain share from informal
players
NEW STORES
Existing Shopping Malls
New Shopping Malls
Stand-alone Stores
Central Areas
International expansion
(7 stores in Uruguay and
4 in Argentina)
SMALLER
STORES
Smaller Cities
Micro regions
Stores with 1,200 m²
of selling area
450 stores (2021)
125 stores (2021)
300 Potential stores
Pilot Stores
STORE TARGETS
2
29. Lojas Renner S.A.September 2019 29
STRATEGIC PRIORITIES
Promoting the enchantment on the digital cycle
en
= People + Products & Services + Technology
Absorb Technology to Deliver and Reinforce Our Value Proposition
Value Proposition: “To be the brand which stands by the woman, offering a range of styles of high
quality fashion at competitive prices, in practical and agreeable environments, enchanting and
innovating, in a sustainable way”
3
35. Lojas Renner S.A.September 2019 35
FACT SHEET
Company Background
1912 1922 1940 1965 1967 1973 1987 1991 1994 1996 1997 1998 1999 2002 2003 2005 2006 2007 2010 2011 2012 2013 2014 2015 2016 2017
Beginning of the Story Expanding Territory Driving Growth
A.J. Renner
begins
operations
Full line
department store
Capital
Listing
Heavy
consumer
durables
phase out
19221912 194
0
19671965 1973 19911987 199
4
1997199
6
199
8
2002199
9
2003 2006200
5
2007 2011201
0
201
2
2013 201
4
2015 201
6
2017 201
8
Expansion into
the States of
Santa Catarina
and Paraná
First
stores in
São
Paulo
Debut in
the
Midwest
Region
Phase out of
Home and
Décor
department
Debut in the
Northeast
Financial Products
Co-branded
Credit Card
E-commerce
Rio de Janeiro DC
Shared Services
Center
Present in
all Brazilian
states and
FD
Realize CFI
constitution
Overseas
Operation
First store, in
Porto Alegre
Lojas Renner S.A.
is constituted
Renner
Private
Label
Card
Professionalization of
management
Specialized fashion
store
“Enchantmeter”
customer
satisfaction
J.C. Penney
acquires a
controlling
stake
Lifestyle
Concept
J.C. Penney divests
its stake
Novo Mercado
1st Brazilian
Corporation
Debut into
the North
Acquisition
of
Camicado
Launch of
Youcom
New Santa
Catarina DC
Launch of
Ashua
Ashua
Launch of B&M
Stores (pilots)
36. Lojas Renner S.A.September 2019 36
As of June 31st, 2019
363
113
96
05
DC Renner
DC Camicado
DC Youcom
Expansion of Selling Area
CAGR (2014 – 2018) = 9.3%
FACT SHEET
Geographical Footprint
103
7
38
18
19 36
9
26
10
9
4
5
1
6
1
2 1
9
5
1
4
12
10 3
3
9
4
2
7
34
8
5
6 12
3
8
4
3
1
2
1
2 2
2
2
4
2 2
2
4
2
2
44
13
12
6
10
5
2
1
1
1
2
1
76
19
30
2
Uruguay
South
178
57
54
3Southeast
Northeast
28
9
9
Midwest-
22
6
2
North
URU
MT
MS
DF
RS
SC
PR
SP
RJ
ES
MG
PE
CE
BA
SE
RN
PB
PI
TO
MA
PA
APRR
AM
AC AL
GO
53
22
1
RO
1
1
37. Lojas Renner S.A.September 2019 37
100% free float and listed on B3 Novo Mercado
100% common shares and tag along
Majority of independent members
on the Board of Directors (88%), with different executives occupying
the Chairman and the CEO positions
Permanent Fiscal Council
Committees directly linked to the Board of Directors
Own Internal Charters
(Board of Directors, Fiscal Council & Committees)
Stock Option Plan aligns interests of
executives to shareholders
Board of Directors Portal and Secretaries to the Board and
Committees
Formal Appraisal of the Board of Directors and Executive Officers
Corporate Governance Secretary
Board of Directors
CEO
Fiscal Council
Independent Auditors
Internal Auditors
Compliance
.
Shareholder’s
Meeting
Vice
Chairman
Osvaldo
Schirmer
Chairman
José Galló
Member
Fabio
Pinheiro
Member
Juliana
Rozenbaum
Member
Thomas
Herrmann
Member
Christiane
Edington
People
Committee
Sustainability
Committee
Strategic
Committee
Audit and Risk Management
Committee
CEO
Fabio
Faccio
Loss
Prevention
Member
Alexandre
Vartuli Gouvea
HR Clarice
Costa
CFO & IRO
Laurence
Gomes
Executive Team
IT&Mgt
Fabio
Faccio*
Product
Henry Costa
Operations
Fabiana
Taccola
Executive Group
Member
Carlos
Souto
*Interim
FACT SHEET
Corporate Governance
38. Lojas Renner S.A.September 2019 MODA RESPONSÁVEL
38
FACT SHEET
Sustainability
RESPONSIBLE SUPPLIERS
Goal 1
Create value by respecting the environment,
human and labor rights
SUSTAINABLE PRODUCTS AND
SERVICES
Goal 5
Deliver sustainable, quality product and
service lines, and communicate
customer value
ECO-EFFICIENT MANAGEMENT
Goal 2
Identify/measure/reduce: water, energy,
chemicals, waste, CHG emissions
Goal 3
Innovate in the development of lower impact raw
materials and processes
ENGAGE: EMPLOYEES COMMUNITIES &
CUSTOMERS
Goal 4
4.1 Engage employees (agents and leaders in
sustainability)
4.2 Communities (women’s empowerment in
the textile chain)
4.3 Customers (conscious consumption)
39. Lojas Renner S.A.September 2019 MODA RESPONSÁVEL
39
FACT SHEET
Sustainability
80% less impacting products, 100% certified cotton
100% of the national and international resale chain with social and environmental certification
75% of corporate energy consumption will be from renewable energy sources (renewable energy source
considered: small hydroelectric plants (SHPs), solar, wind and biomass.)
• 20% reduction in absolute CO2 emissions, over 2017 inventory
2021 goals and commitments
40. Lojas Renner S.A.September 2019 40
FACT SHEET
Market Positioning
A
B
C
+
-
+
-
Renner
SocialClasses
+
-
Source: Ibope Inteligência 2015 and IstoÉ Dinheiro Magazine – Family Budget Survey (POF) – IBGE
R$ 20,273.00
R$ 1,910.00
R$ 5,351.00
Average Monthly
Household
Income
24% of households
47% of total wage bill
38% of consumption
3% of households
24% of total wage bill
16% of consumption
52% of households
27% of total wage bill
39% of consumption
41. Lojas Renner S.A.September 2019 41
Lifestyle: You have your style, Renner has all of them.
Each brand represents the lifestyle of a customer group based on their attitudes, interests, values and personalities.
FACT SHEET
Lifestyle Strategy
42. Lojas Renner S.A.September 2019 42
Best use of shopping time
One-stop-shop for the whole family
Reduces need for markdowns
Increases opportunities for cross-selling
FACT SHEET
Lifestyle Strategy
Lifestyle: You have your style, Renner has all of them.
43. Lojas Renner S.A.September 2019
11.8%
90
Unemployment Rate
97
Credit Evolution to Individuals as a % of GDPHousehold Indebtedness
Source: IDV, Ministério da Fazenda, IBGE/PME , Brazilian Central Bank(new methodology since March/11).
Total Savings (Balance)
Household Indebtedness/ Income Mass (12 months)
Household Indebtedness(Ex. mortgage)/ Income Mass (12 months)
Income Commitment with Debt Service (Interest + Amortization)
Trend Line
Delinquency Rate for Individuals (average)
Credit to Individuals/GDP (year end period)
Consumer Confidence Level Consumer Confidence Leve in Retail Restrict TradeUnemployment Rate (% of Economic Active Population)
14,9% 15,2% 15,5% 15,6% 15,2%
13,4% 12,9%
13,0%
13,8%
6,5% 5,8%
8,1% 7,2% 6,6%
8,1% 7,7% 7,2%
6,0%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Macroeconomic Influences
FACT SHEET
Consumer Confidence Level and Retailing Business
43
R$ 802.6 bi
25.7%
20.6%
44.6%