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Grendene - 3Q11 Results

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Grendene - 3Q11 Results

  1. 1. 3Q11November 2011
  2. 2. DisclaimerThis presentation contains statements that can represent expectations aboutfuture events or results, These statements are based on certain suppositionsand analyses made by the company in accordance with its experience, withthe economic environment and market conditions, and expected futuredevelopments, many of which are beyond the company’s control, Importantfactors could lead to significant differences between real results and thestatements on expectations about future events or results, including thecompany’s business strategy, Brazilian and international economic conditions,technology, financial strategy, developments in the footwear industry,conditions of the financial market, and uncertainty on the company’s futureresults from operations, plans, objectives, expectations and intentions –among other factors, In view of these aspects, the company’s results coulddiffer significantly from those indicated or implicit in any statements ofexpectations about future events or results, 2 2
  3. 3. AgendaResultsGuidance 3
  4. 4. Results (in IFRS) 4
  5. 5. Main financial and economic indicatorsR$ million 3Q10 3Q10 Var. % 3Q10-3Q11Net sales revenue 214.0 192.9 (9.9%)Net income 104.8 83.5 (20.3%)Margin % 3Q10 3Q11 Var. p.p.Gross 49.0% 46.5% 2.5EBIT 18.5% 12.9% (5.6)EBITDA 20.1% 14.6% (5.5)Net 24.0% 20.1% (3.9) 5
  6. 6. Gross sales revenue (IFRS) (R$ million)Gross sales revenue Gross sales revenue Gross sales revenue CAGR (3Q07-3Q11): 5.6% Domestic market Exports CAGR (3Q07-3Q11): 5.0% CAGR (3Q7-3Q11): 9.6% 546 74 515 68 70 476 477 458 441414 422 390 54 51 3633Q07 3Q08 3Q09 3Q10 3Q11 3Q07 3Q08 3Q09 3Q10 3Q11 3Q07 3Q08 3Q09 3Q10 3Q11 6
  7. 7. Market % Gross sales revenue Sales volume12,3% 14,8% 11,3% 12,8% 14,3% 20,1% 23,4% 19,2% 22,4% 23,2%87,7% 85,2% 88,7% 87,2% 85,7% 79,9% 76,6% 80,8% 77,6% 76,8%3Q07 3Q08 3Q09 3Q10 3Q11 3Q07 3Q08 3Q09 3Q10 3Q11 Domestic market Exports Domestic market Exports 7
  8. 8. Results (IFRS) (R$ million)Gross profit / Gross margin EBIT / EBIT margin CAGR (3Q07-3Q11): 6.1% CAGR (3Q07-3Q11): (0.9%) 81 214 193 63 166 152 149 56 54 49,0% 46,4% 46,0% 46,5% 39,7% 17,5% 36 18,5% 16,9% 12,9% 9,5% 3Q07 3Q08 3Q09 3Q10 3Q11 3Q07 3Q08 3Q09 3Q10 3Q11 8
  9. 9. Results (IFRS) (R$ million) EBITDA / EBITDA margin Net income / Net margin CAGR (3Q07-3Q11): (0.7%) CAGR (3Q07-3Q11): 1.2% 88 105 69 84 80 62 61 73 66 24,3% 24,0% 42 20,1% 20,3% 20,1%19,0% 19,2% 17,5% 14,6% 11,3% 3Q07 3Q08 3Q09 3Q10 3Q11 3Q07 3Q08 3Q09 3Q10 3Q11 9
  10. 10. Sales volume (Million pairs) Sales volume Sales volume – Sales volume – CAGR (3Q07-3Q11): 1.5% Domestic market Exports CAGR (3Q07-3Q11): 0.5% CAGR (3Q07-3Q11): 5.2% 41 32 32 9 9 9 40 40 31 39 30 3038 8 8 3Q07 3Q08 3Q09 3Q10 3Q113Q07 3Q08 3Q09 3Q10 3Q11 3Q07 3Q08 3Q09 3Q10 3Q11 10
  11. 11. Operational result (IFRS) (R$ ‘000) 3Q10 %V 3Q11 %V %H Marginal %VDomestic market 476,600 109.2% 441,053 106.4% (7.5%) (35,547) 163.5%Exports 69,770 16.0% 73,662 17.8% 5.6% 3,892 (17.9%)Gross sales revenue 546,370 125.2% 514,715 124.1% (5.8%) (31,655) 145.6%Sales deduction (110,006) (25.2%) (100,094) (24.1%) (9.0%) 9,912 (45.6%)Net sales revenue 436,364 100.0% 414,621 100.0% (5.0%) (21,743) 100.0%Cost of sales (222,393) (51.0%) (221,729) (53.5%) (0.3%) 664 (3.1%)Gross profit 213,971 49.0% 192,892 46.5% (9.9%) (21,079) 96.9%Operating income (expenses) Selling expenses (116,412) (26.7%) (123,660) (29.8%) (6.2%) (7,248) 33.3% General & administrative expenses (16,002) (3.7%) (14,655) (3.5%) (8.4%) 1,347 (6.2%) Management fees (961) (0.2%) (1,070) (0.3%) 11.3% (109) 0.5%EBIT 80,596 18.5% 53,507 12.9% (33.6%) (27,089) 124.6%Other operating income 638 0.1% 1,519 0.4% 138.1% 881 (4.1%)Other operating expenses (4,297) (1.0%) (1,215) (0.3%) (71.7%) 3,082 (14.2%)Operating result before financial 76,937 17.6% 53,811 13.0% (30.1%) (23,126) 106.4%revenue (expenses) 11
  12. 12. 9M11 12
  13. 13. Main financial and economic indicatorsR$ million 9M10 9M11 Var. % 9M10-9M11Net sales revenue 1,116.4 975.7 (12.6%)Net income 189.7 183.9 (3.1%)Margin % 9M10 9M11 Var. p.p.Gross 37.7% 40.8% 3.1EBIT 10.2% 9.5% (0.7)EBITDA 12.1% 11.7% (0.4)Net 17.0% 18.8% 1.8Share 2010 9M11Profit per share R$ R$1.0388 R$0.6115Share price (Dec. 31 – Sep. 30) R$ R$9.32 R$7.75Book value per share R$ R$5.57 R$5.79Market cap (R$) R$2,802,710,400.00 R$2,330,580,000.00 13
  14. 14. Gross sales revenue (IFRS) (R$ million)Gross sales revenue Gross sales revenue – Gross sales revenue - CAGR (9M10-9M11): 5.4% Domestic market Exports CAGR (9M10-9M11): 5.0% CAGR (9M10-9M11): 7.0% 1.125 269 1.394 973 995 245 1.219 1.221 227 867 818 209 1.076991 1739M07 9M08 9M09 9M10 9M11 9M07 9M08 9M09 9M10 9M11 9M07 9M08 9M09 9M10 9M11 14
  15. 15. Market % Receita bruta de vendas Volume de pares14,9% 19,4% 20,1% 19,3% 18,6% 23,9% 33,3% 29,2% 33,8% 29,8%82,6% 80,6% 79,9% 80,7% 81,4% 71,4% 66,7% 70,8% 66,2% 70,2%9M07 9M08 9M09 9M10 9M11 9M07 9M08 9M09 9M10 9M11 M.Interno Exportação M.Interno Exportação 15
  16. 16. Results (IFRS) (R$ million)Gross profit / Gross margin EBIT / EBIT margin CAGR (9M07-9M11): 6,1% CAGR (9M07-9M11): 0,8% 421 114 398 375 97 94 93 336 90 315 40,1% 39,8% 40,8% 38,5% 37,7% 11,5% 11,2% 10,0% 10,2% 9,5% 9M07 9M08 9M09 9M10 9M11 9M07 9M08 9M09 9M10 9M11 16
  17. 17. Results (IFRS) (R$ million) EBITDA / EBITDA margin Net income / Net margin CAGR (9M07-9M11): 0.8% CAGR (9M07-9M11): 3.4% 187 190 184 135 161 157 113 117 114111 20,5% 18,6% 19,2% 18,8% 17,0%14,2% 13,4% 12,0% 12,1% 11,7% 9M07 9M08 9M09 9M10 9M11 9M07 9M08 9M09 9M10 9M11 17
  18. 18. Sales volume (Million pairs) Sales volume Sales volume – Sales volume – CAGR (9M07-9M11): 1.3% Domestic market Exports CAGR (9M07-9M11): 0.9% CAGR (9M07-9M11): 2.3% 80 41 120 76 108 69 70 35 104 68 100 3295 30 27 9M07 9M08 9M09 9M10 9M119M07 9M08 9M09 9M10 9M11 9M07 9M08 9M09 9M10 9M11 18
  19. 19. Shareholder´s equity and return on equity 28,1% 24,9% 20,3% 20,6% 21,3% 18,3%R$ million % 1.047 1.180 1.318 1.465 1.676 1.740 2006 2007 2008 2009 2010 2011 Shareholders equity (R$ mn) Return on equity (%) 19
  20. 20. Operational result (IFRS) (R$ ‘000) 9M10 %V 9M11 %V %H Marginal %VDomestic market 1,125,162 100.8% 994,752 102.0% (11.6%) (130,410) 92.7%Exports 268,840 24.1% 226,556 23.2% (15.7%) (42,284) 30.1%Gross sales revenue 1,394,002 124.9% 1,221,308 125.2% (12.4%) (172,694) 122.8%Sales deduction (277,623) (24.9%) (245,583) (25.2%) (11.5%) 32,040 (22.8%)Net sales revenue 1,116,379 100.0% 975,725 100.0% (12.6%) (140,654) 100.0%Cost of sales (695,609) (62.3%) (577,467) (59.2%) (17.0%) 118,142 (84.0%)Gross profit 420,770 37.7% 398,258 40.8% (5.4%) (22,512) 16.0%Operating income (expenses) Selling expenses (262,355) (23.5%) (260,766) (26.7%) (0.6%) 1,589 (1.1%) General & administrative expenses (42,216) (3.8%) (41,473) (4.3%) (1.8%) 743 (0.5%) Management fees (1,978) (0.2%) (3,082) (0.3%) 55.8% (1,104) 0.8%EBIT 114,221 10.2% 92,937 9.5% (18.6%) (21,284) 15.1%Other operating income 2,639 0.2% 5,327 0.5% 101.9% 2,688 (1.9%)Other operating expenses (5,311) (0.5%) (2,837) (0.3%) (46.6%) (2,474) (1.8%)Operating result before financial 111,549 10.0% 95,427 9.8% (14.5%) (16,122) 11.5%revenue (expenses) 20
  21. 21. Net cash, cash and cash equivalents and debt 1.151 1.184 1.119 1.031 860 845 859 1.021 983 942 815 852 793R$ milion 756 (104) (52) (45) (178) (167) (164) (177) 31/03/10 30/06/10 30/09/10 31/12/10 31/03/11 30/06/11 30/09/11 Cash and cash equivalents Debt Net cash Strong cash flow 21
  22. 22. Dividends R$ 0,4400 R$ 0,3991 R$ 0,4048 R$ 0,3633 R$ 0,3667 74,9% 46,0% 45,5% R$ 40,4% % 38,9% 4,9% 6,7% 5,8% 4,7% 6,8% 2007 2008 2009 2010 9M11 Dividendo per share (R$) Dividend yield (%) Payout (%)Dividend yield: Profit per share divided by average value of the share in the year. 22
  23. 23. Low need for Capex 40 35 35 33 30 27 24 24 25R$ million 20 20 15 10 5 0 2007 2008 2009 2010 9M10 9M11 23
  24. 24. Perspectivas Targets for: 2009 – 2013 / 2011-2015 Growth of gross revenue at a CAGR between 8% and 12% in the five years. Growth of net profit at a CAGR between 12 and 15% in the five years. Advertising expenses: average: 8% - 10% of net revenue in this period.Our view is that, in this period, we may have years with greatergrowth that these rates, as was the case in 2009, and others withless growth, but on average we intend to meet this target. 24
  25. 25. Thank You! Francisco Schmitt Investor Relations Officer schmitt@grendene.com.br 40 years old (5554) 2109.9022 Cátia Gastmann Secretary catia@grendene.com.br (5554) 2109.9011 Further informationInternet: http://ri.grendene.com.br / Email: dri@grendene.com.br 25

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