2. Highlights of 2011 and Expectations for 2012
Financial Performance
Operational Performance
2
3. Highlights of 2011
Initiatives and achievements Impacts on financial results
Significant 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 Maia
Sustainable 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 investments
Consolidation of the São Paulo Office Infrastructure investments
• Logistics and IT – R$71 million
Initial Public Offering (IPO) • Extraordinary expenses at Magazine Luiza of
Investments 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. Expectations for 2012
1 4
Maturation of Baú’ Stores Infrastructure Investments
Corporate integration – nov/11 Logistics and Technology investments
Systems integration – feb/12 Budget: R$140 million
People and logistic costs synergies New stores opening (20-30 stores)
Constant sales growth Stores refurbishing (50-60 stores)
2 5
Integration Process – Maia’ stores Luizacred
Corporate integration – 2Q12 Robust provisions for loan losses
Systems integration – end of 3Q12 Maintenance of credit approval rate
Complete management integration – 4Q12 Improvement in profitability during 2S12 (credit
Brand transition – Salvador and João Pessoa portfolio’s maturation and expenses dilution)
3 6
Reduction of costs and expenses Results
“Mais com Menos” (More with Less) project Sales increase (stores maturation. internet.
Reduction in expenses in all departments market consolidation and Brazilian market
Significant reduce in consulting and integration perspectives)
expenses Sustainable results
4
5. Highlights of 2011 and Expectations for 2012
Financial Performance
Operational Performance
5
10. EBITDA and Net Income (R$ 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 71.9
60.5 84.0
1Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 4Q11 2011
6.4% 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
4.6
9.3 12.3
1Q10 2Q10 3Q10 4Q10 2010 1Q11 2Q11 3Q11 4Q11 2011
1.0% 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. 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 11.7
Net 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. Highlights of 2011 and Expectations for 2012
Financial Performance
Operational Performance
12
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. 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. Luizacred Portfolio (R$ millions)
Portfolio Overdue Dec 2011 Sep 2011 Jun 2011 Mar 2011 Dec 2010
Total 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 IFRS
Coverage (%) 114% 111% 112% 106% 119%
15
16. Investor Relations
ri@magazineluiza.com.br
www.magazineluiza.com.br/ir
Legal Disclaimer
Any statement made in this presentation referring to the Company’s business outlook. projections and financial and operating goals
represent beliefs. expectations about the future of the business. as well as assumptions of Magazine Luiza’s management and are
solely based on information currently available to the Company. Future considerations are not a guarantee of performance. These
involve risks. uncertainties and assumptions since they refer to forward-looking events and. therefore depend on circumstances that
may not occur. These forward-looking statements depend substantially on the approvals and other necessary procedures for the
projects. market conditions. and performance of the Brazilian economy. the sector and international markets and hence are subject to
change without prior notice. Thus. it is important to understand that such changes in conditions. as well as other operating factors
may affect the Company’s future results and lead to outcomes that may be materially different from those expressed in such future
considerations. This presentation also includes accounting data and non-accounting data such as operating. pro forma financial data
and projections based on the Management’s expectations. Non-accounting data has not been reviewed by the Company’s
independent auditors.
16
