MANAGEMENT REPORT 2011

In compliance with legal requirements and current Brazilian corporate legislation, Lojas

Americanas S.A. is hereby presenting its Management Report containing the Parent Company

and Consolidated financial and operating results for the fiscal year ending December 31st 2011.

We are also presenting in this report information regarding our B2W – Companhia Global do

Varejo subsidiary, which offers products and services via the Internet, television, telephone,

catalogs and kiosks, and FAI – Financeira Americanas Itaú, which offers financial products.

Lojas Americanas owns 58.87% and 50.00% of the capital stock of B2W and FAI, respectively.

Shares issued by Lojas Americanas and B2W are listed on the São Paulo Stock, Merchandise

and Futures Exchange (BM&FBOVESPA) under ticker symbols LAME4 (preferred) and LAME3

(common), and BTOW3, respectively. It should be noted that B2W only has common shares

and is part of the Novo Mercado (New Market), the listing of the companies with the highest

corporate governance practices in Brazil.

“Multichannel Retailer” structure

Lojas Americanas operates through a multichannel service structure. Besides a chain of brick-

and-mortar stores, the Company reaches its clients with a wide assortment of products and

services, sold via the Internet, television, telephone sales, catalogs and kiosks.

Bricks-and-Mortar

Multichannel Retailer

Ecommerce, Telephone Sales, Catalogues, TV and Kiosks

Participation: 58.87% Results Consolidation: 100.00%

Financial Products

Participation: 50.00% Results Consolidation: 50.00%

2/ 32

Lojas Americanas S.A.

Lojas Americanas was founded in 1929, in Niterói (RJ), and is present in all regions of the

country (24 states plus the Federal District), with 621 stores – 389 in the Traditional format and

232 and the Express format – equivalent to 631,000 square meters of selling space.

The traditional stores have an average sales area of 1,400 square meters of space and daily

replacement of inventories consisting of approximately 60,000 items. The Express model

follows the smaller store concept, with an average selling area of 400 square meters, just-in-

time logistics and a selected assortment of about 15,000 items, adjusted to the characteristics of

each one of the locations in the profile of the clients of each store.

The company guarantees its clients prices that are competitive compared to the competition and

offers quality products, found in its Home, Leisure, Beauty, Infant, Confectionery and

Convenience Foods worlds.

Lojas Americanas also operates three distribution centers, located in São Paulo/SP, Rio de

Janeiro/RJ and Recife/PE.

Lojas Americanas Distribution Map (12/31/2011)

B2W – Companhia Global do Varejo

B2W is Brazil’s leading e-commerce company and currently sells goods and services through

multiple channels, including the Internet, telephone sales, television, catalogues and kiosks.

B2W owns Americanas.com, Submarino, Shoptime, MesaExpress.com.br, SouBarato.com.br

and BLOCKBUSTERR Online, a brand which operating license was purchased by b2w in 2007

for online operations in Brazil. The company also has three subsidiaries: B2W Viagens,

Ingresso.com and Submarino Finance.

DC PE

DC RJ

DC SP

8 4 Southeast

388

North

20

Midwest

58

South

56

Northeast

99

3/ 32

Americanas.com

Having completed 12 years of ecommerce operations in 2011, Americanas.com

(www.americanas.com.br) is the largest and most comprehensive Brazilian internet shop. In

2011, the brand won for the fifth time the Top of Mind award of the e-commerce category

according to Datafolha Institute.

Americanas.com offers more than 500,000 different items distributed in 37 product categories,

including computer and technology products, electronics, cell phones, toys, furniture, household

appliances, books and other. In addition to the online channel, the sale operation is done

through Internet, telephone sales and more than 600 Internet-connected kiosks located at Lojas

Americanas stores.

In the begining of 2011, the brand launched the ―Caixa Expresso‖ tool, the most agile and

easiest way to buy. The client needs to provide his or her delivery address and credit card

information just once; and after identification, buyers can complete their purchases in a single

step.

In the second half, Americanas.com modernized the visual branding, with new logo and new

layout on the site. In the same period, launched the smartphones application, with product

search by barcode and tool for location of the closest Lojas Americanas.

Americanas.com also provides travel services through Americanas Viagens

(viagens.americanas.com.br), B2B (business-to-business) services, digital services like photo

developing, wedding registries and adding prepaid cell phone credit.

4/ 32

Submarino

With 12 years of industry operations, completed in 2011, Submarino (www.submarino.com.br) is

renowned for its leadership in technological innovation. In addition, the Submarino has been

consolidating in other services such as the Submarino Viagens

(www.submarinoviagens.com.br), services of B2B (business-to-business), and credit services

and loyalty with the Submarino card.

Submarino offers 29 product categories through its different sales channels: Internet, telephone

sales and catalogues, with heavy emphasis on sales of books, CDs, DVDs, electronics,

computer and technology products, telephone products, games and online services. In 2011,

Submarino increased its participation in the sponsorship of events, being presented in several

actions of relevance to national and global levels, as Campus Party Brasil, Book Biennial Rio

and Rock in Rio. Submarino launched the Submarino Digital Club, a social network for books

that allows you to purchase e-books and enables social interaction and content among its users.

Each year the Submarino’s clients receive four special editions of printed catalogues, with a

printing run of hundreds of thousands of copies and which present an assortment of products

and special offers.

Following its path of innovation, Submarino implemented throughout 2011 new tools as the

Submarino Store, that allows the customization of a Submarino store in Facebook. In addition,

the ―Entrega Atômica‖ resumed execution in 2011 in the city of São Paulo, allowing customers

of certain ranges of CEP, with purchases made until 2:00 pm, receive their products in the same

day. The brand also incorporated the QR Codes in its communication, not only on all items of

newspaper ads, as well as virtual storefronts. The mobile application of the Submarino was

updated with QR Code Reader, so the user does not need to download a generic reader to

access the advertised brand products this way.

Shoptime

The Shoptime (www.shoptime.com.br), that celebrated its 16th birthday in 2011, is Brazil's first

home shopping (television sales) and operates through internet, telesales and catalogues. The

TV channel reaches more than 28 million Brazilian households, comprised of more than 12

million homes with pay-TV subscriptions (Sky 19 and Net 31 channels) and more than 16 million

homes connected to satellite television (Vertical 5B), with interactive transmission including

more than 11 hours of live programming seven days a week. Since 1995, the television channel

broadcasts 24 hours a day, ensuring speed and improved interaction for clients' shopping

experiences.

5/ 32

Shoptime currently offers 23 product categories to more than 4.3 million clients. Shoptime’s

assortment focus is on articles marketed under the Shoptime brand, with an emphasis on

portable appliances (Fun Kitchen), bed, bath and dining products (Casa & Conforto), house

wares (La Cuisine) and sports and leisure products (Life Zone). The computer and technology

department also plays an important role in the brand’s product mix.

Furthermore, Shoptime operates a travel agency through Shoptime Viagens

(viagens.shoptime.com.br).

B2W Viagens

B2W Viagens operates under the following brands: Americanas Viagens, Submarino Viagens

and Shoptime Viagens, and offers tour packages, plane tickets, online hotel reservations,

cruises, travel insurance, car rentals and tourist attractions packages in Brazil and abroad. The

company markets its services through the Internet, telephone sales, television and kiosks and

had been working to expand product assortment.

B2W Viagens’s objective is to build a platform that allows each brand’s clients to quickly and

easily plan and purchase their travel packages, driving the company to a leadership position in

Brazil’s online travel market on account of the company’s innovation, excellent customer service,

outstanding content and competitive prices.

As part of its strategy for continuous innovation, in 2010 B2W Viagens launched Milevo

(www.Milevo.com.br), a social travel network. The new site allows users to add comments

concerning their travel experiences, which enables B2W Viagens to gain access to a qualified

traveling public with guaranteed travel knowledge and experience. Remarkably Milevo

complements the positioning strategy of B2W Viagens, because it interacts with the customer´s

travel planning phases and sharing experiences phases.

Another B2W Viagens’ business unit is the H2W, that acts as a hotel broker and is responsible

for the direct negotiation of hotel units through commercial "merchant" model. Today, H2W hás

more than 500 hotels with direct contract and good national and international inventory

availability. In a partnership with Banco Bradesco, B2W Viagens launched the first online

platform of points redemption of loyalty programs, allowing the client to use the benefit on any

airline or hotel.

In 2011, B2W Viagens prepared itself internally to begin its international expansion by adapting

their platform to be "multi-language and multi-currency" and allocating a dedicated team for this

6/ 32

initiative. In December, 2011, was launched officially the travel operation in Argentina through

the brand Submarino Viajes (www.SubmarinoViajes.com.ar).

Ingresso.com

Ingresso.com provides technology and services so that customers can purchase tickets online

for movies, theater productions, concerts, soccer games and cultural events. With more than 3.6

million registered clients, Ingresso.com is the biggest online ticket seller in Brazil. The company

also allows clients to make seat assignments online, which enables them to choose their

preferred seats comfortably. In addition, the company has been investing in concerts ticket

sales heavily, having realized with exclusitivy the ticket sales for Paul McCartney´s concerts and

Rock in Rio in Brazil in 2011.

In addition to the main site (www.ingresso.com), which includes an exclusive version for mobile

devices and iPhone and Android application, Ingresso.com is also available on the

Americanas.com, Submarino and Shoptime websites.

Another area in which Ingresso.com operates involves marketing its ticketing software in Brazil.

The company is currently responsible for computerizing various movie theaters, playhouses,

sports stadiums and concert venues.

Furthermore, Ingresso.com is present in Latin America and currently operates in Mexico,

Argentina and Chile through movie ticket sales in a partnership with Cinemark. This initiative

has allowed B2W to explore and study new markets with low entry costs.

Submarino Finance

As part of its joint venture with Cetelem, Submarino Finance offers the Submarino credit card,

which provides financing in up to 24 installments for purchases on Submarino’s site as well as

an exclusive rewards and special-offers program, such as product discounts and points for the

Submarino’s loyalty program (Léguas Submarinas).

For B2W, the own card represents an opportunity to leverage sales, especially high-cost items,

to reduce the costs associated with credit-card administrative fees, to increase discounts for

accounts receivable, and to improve business revenue resulting from consumer financing.

During the year, the company issued more than 700 thousand cards, and cards were used in

37% of the sales on the Submarino site.

7/ 32

Blockbuster Online

B2W acquired the right to use the BLOCKBUSTER® trademark online in Brazil and started

offering in 2008 online DVD and Blu-ray Disk rentals on www.blockbuster.com.br.

BLOCKBUSTER® Online is a rental store that allows online clients to choose the movies they

want to watch, to create their wish list, and to receive and return movie rentals from the comfort

of their homes. It offers monthly plans that allow clients to always have movies at home without

worrying about return dates and late-return fines.

BLOCKBUSTER® Online currently includes the largest online selection of movies in Brazil, with

more than 20,000 titles, and it provides services to the states of São Paulo, Rio de Janeiro,

Minas Gerais, Paraná, Santa Catarina, Rio Grande do Sul and the Federal District, with Sunday

and same-day delivery services available in the cities of São Paulo and Rio de Janeiro. It also

has the largest Blu-ray disk collection available for rent in Latin America, with more than 2,000

titles. It offers the service of rental of videogame games, being the unique rental store offering

DVD, Blu-ray and games in Brasil.

FAI – Financeira Americanas Itaú

The Financeira Americanas Itaú (FAI) is dedicated to financing purchases through own brand

credit cards (private label) and Visa and Mastercard (co-branded) cards, offering personal credit

and other financial products and services.

It operates through points of sale in Lojas Americanas, the Internet (Americanas.com and

Shoptime) and the TV Shoptime television channel.

FAI offers two types of cards: private label and co-branded. The private label cards offer

different payment methods and can be used to finance purchases immediately after they have

been issued.

The co-branded cards are partnerships between FAI and the Mastercard and Visa card

companies, and can be issued in domestic and international versions.

8/ 32

2. MENSAGE FROM THE MANAGEMENT

T O O U R C U S T O M E R S , S H A R E H O L D E R S ,

A S S O C I A T E S A N D S U P P L I E R S :

Over the past 10 years, we have advanced on a number of different fronts that have enormously

transformed LOJAS AMERICANAS.

We evolved from 105 stores in 2002 to 621 in 2011, multiplying the quantity of stores six times

and consolidating the presence of our brand in practically every Brazilian state. The total sales

area of our stores grew by 388,000 m² over the same period.

In operational terms, consolidated EBITDA went from R$ 143 million in 2002 to R$ 1.4 billion in

2011, growing around ten times. The consolidated EBITDA margin raised 5.1 p.p. over the

same period, reaching a level of 14.2% of net revenue (NR) in 2011.

Consolidated gross revenue in 2002 totaled R$ 1.9 billion. In 2011, we presented a total volume

of R$ 11.7 billion, representing a compound average growth rate (CAGR) of 22.4% between

2002-2011.

We are building the necessary infrastructure to consolidate our DREAM for growth in the

forthcoming years in a way that offers the best service to our customers. Therefore, during 2011,

we carried out the largest investment program in our history. In April, we made a capital

injection of R$ 644 million in B2W and we further invested R$ 350 million in Lojas Americanas,

emphasizing: expansion, reform of the chain of stores and technological modernization.

B2W – subsidiary that is multi-channel, multi-brand and multi-business, which offers products

and services through the Internet, television, telephone, catalogs and kiosks, achieved

consolidated gross revenue of R$ 4.7 billion, with an EBITDA margin of 9.8% of NR.

For 2012, similar to previous years, ―we will continue to move forward along the path of learning

and overcoming obstacles, which naturally makes us enthusiastic because we will achieve

higher levels of results, always seeking better ways to satisfy the needs of our customers.‖

Finally, we would like to thank the dedication — and enthusiastic and tough attitude — of our

Associates as well as the support we have received from our suppliers, customers and

shareholders.

THE MANAGEMENT

“We always want more”

9/ 32

3. ECONOMIC LANDSCAPE

According to the Brazilian Geography and Statistics Institute (IBGE), 2011 inflation as measured

by the Extended Consumer Price Index (IPCA) came to 6.50%, up from 5.91% in 2010. In 2011,

the General Market Price Index (IGP-M), as measured by the Getúlio Vargas Foundation (FGV)

registered an annual inflation rate of 5.10%, compared to 11.32% deflation the preceding year.

In 2011, there was a 12.6% valuation of the US dollar against the Brazil real. The Central

Bank’s Overnight Lending Rate (SELIC) was 11.00% per year at the close of 2011, up from

10.75% reported at the close of 2010. Retail commerce sales volume in 2011 grew 6.7% (IBGE).

Lojas Americanas reaffirms its confidence regarding the economic development of the country

and in the growth opportunities of the retail segment. The company will continue to focus on

expanding its network of stores and in its multichannel service model.

10/ 32

4. STRATEGY AND INVESTIMENT

In 2011, Lojas Americanas’ consolidated net revenue totaled R$ 10.202 billion, the equivalent to

the growth of 8.7% over the previous year. Of this total, R$ 6.048 billion referred to the

performance of the Parent Company (brick-and-mortar stores), which sold 13.2% more than in

2010.

In the ―same stores‖ concept, that is, excluding stores inaugurated less than one year ago,

accumulated net sales in 2010 rose by 7%.

In the past nine years, Lojas Americanas expanded its store network by a factor of six through

its natural expansion program and the acquisition of BWU, the company that owned the

BLOCKBUSTER® trademark in the country.

In 2011, in line with its "SEMPRE MAIS BRASIL" program, the Company set a new record,

opening 90 stores - 62 in the Traditional and 28 in the Express model. Throughout the year we

decided to deactivate 10 stores.

In 2012, we have opened 4 stores and we have more than 80 stores already hired or in

advanced phase of leading us to be optimistic about reaching 110 new store openings in 2012.

At the end of the year, Lojas Americanas had 621 stores, being 389 in the traditional format and

232 stores in the express format:

330

372

443

491 504

564

631

193Stores

237Stores

413Stores

468Stores

476Stores

541Stores

621Stores

2005 2006 2007 2008 2009 2010 2011

Nu

mb

er

of

Sto

res

Sale

s A

rea (

tho

usan

d m

²)

Evolution of Sales Area x Number of storesPosition at December 31

11/ 32

The following table shows the profile of the stores opened during 2011:

Region Format Number of StoresSales Area

thousand m²

Average

thousand m²

As of 12/31/2010 541 564.5 1.0

Southeast Traditional 21 17.8 0.8

Express 25 11.3 0.5

Northeast Traditional 18 18.4 1.0

Express 2 1.1 0.6

South Traditional 6 6.5 1.1

Express 1 0.3 0.3

North Traditional 5 6.7 1.3

Express 0 0.0 0.0

Midwest Traditional 12 11.6 1.0

Express 0 0.0 0.0

Total Traditional 62 61.0 1.0

Express 28 12.7 0.5

Deactivation/Remodel (10) (6.8) 0.7

As of 12/31/2011 621 631.4 1.0

Expansion Plan

The ―SEMPRE MAIS BRASIL‖ program, announced in the end of 2009, provides the opening of

400 new stores in Brazil in the period between 2010 and 2013.

Currently, all the Company’s stores are located in only 210 of the more than 5,500 cities in the

country, which demonstrates the opportunity Lojas Americanas has for opening new stores in

cities that are at a greater distance from Brazil’s large urban centers.

As illustrated in the following chart, based on economic feasibility studies and analysis

conducted internally using the EVA® (Economic Value Added) tool, together with socio-

economic data (population, income, access to basic services, access to consumer goods,

among others), we believe that at this moment there is the possibility that our brick-and-mortar

retail stores could be present in approximately 140 additional cities.

5.150

174 176Current cities with Lojas

Americanas

Cities with potential for

opening a new store

Nationwide distribution

140 210

12/ 32

In the last years we improved our presence in cities further away from urban centers and started

our operations in Tocantins and Acre States. Just in 2010 we opened our first store in 30 new

cities and during 2011 we opened our first store in more 36 new cities.

At the end of 2011 our stores were located in 24 states of the country plus the Federal District,

with distribution as follows: 62% in the Southeast region, 18% in the South/Midwest and 19% in

the North/Northeast. Coupled with our confidence in the development of the country, the

expansion plan for these new cities could especially benefit the North/Northeast/Midwest

regions.

As it has occurred historically, the growth should be in the proportion of 70% Traditional stores

(average sales area between 1,300 m² and 1,500 m²) and 30% Express stores (average sales

area between 300 m² and 500 m²).

The following table shows the number of stores inaugurated in 2010 and 2011 and the estimate

of stores openings in the period from 2012 to 2013:

YearNumber of

Stores

2010 70

2011 90

2012 110 to 120

2013 120 to 130

On February 10, 2012, in a ceremony with the presence of Misters Governor Antonio Anastasia

and the Mayor Odelmo Leão, Lojas Americanas and B2W announced the creation of a new

Distribution Center, this time in Uberlândia, Minas Gerais. The new Distribution Center will

guarantee a faster supply of the physical stores, a greater agility in delivery of products

purchased on the B2W’s sites and a better customer service of Minas Gerais and Midwest and

North regions.

Total Investments

The Company’s current cash position and the future cash generation, together with the

elongation of the debt profile, leave us in a comfortable position to make the expected

investments, which should be approximately R$ 1.7 billion.

13/ 32

Parent Company 1,000

Openings / Improvements 720

Technology / Logistics / Operation 280

Subsidiaries 704

B2W Capital Increase 644

FAI Capital Increase 60

TOTAL INVESTMENTS 1,704

INVESTMENTS (2010 to 2013) - R$ MM

In 2011, Lojas Americanas Parent Company invested a total of R$ 349.6 million, emphasizing

in: expansion, refurbishment of the stores network and technological update. In this amount, are

being considered the investment in goods for rent, in the value of R$ 22.9 million.

R$ million %

Openings / Improvements 290.8 83%

Technology / Logistics / Operation 35.9 10%

Goods for rental 22.9 7%

TOTAL 349.6 100%

According to the Notice to Shareholders published by B2W in March 23, the Company

announced the approval of a capital increase in the amount of R$ 1.0 billion. Lojas Americanas

subscribed the shares that totaled R$ 643.6 million and increases its stake in B2W from 56.57%

to 58.87% after all the capital increase phases.

The capital contribution in B2W was the greatest investment of Lojas Americanas in 2011, and

aims to improve B2W’s capital structure allowing a significant increase in the investments in

technological innovation and development of logistics and operations, enabling the acceleration

of the growth and the consolidation of a leadership position.

FAI – Financeira Americanas Itaú

Keeping its strategy of expanding the offer of credit and financial services to Lojas Americanas'

clients, Financeira Americanas Itaú (FAI) reached 1.7 million cards issued in the end of 2011

being 579 thousand private label and 1.2 million credit cards with flags (Visa or Mastecard), that

can be used inside and outside Lojas Americanas.

In December 2011, the receivables portfolio reached R$ 1.1 billion and the portfolio’s loss ratio

remains stable at 6% during the year.

14/ 32

349 387 469 561736 777 849 908

1.046 1.025 1.033 1.002 1.087 164 144

11488

62 50 50

36

33 25 20 13 7

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

Portfolio of Receivables FAI(R$ million)

Personal Loans Private Label + Co-Branded

Glossary: Receivables portfolio: Amounts to receive from billing.

People

Following our motto of ―We Always Want More‖ and in order to achieve our growth targets as

confirmed through the ―SEMPRE MAIS BRASIL‖ program, Lojas Americanas intensified training,

qualification and integration programs focusing on the hiring and developing of talented young

people who are being trained to take on important responsibilities in a short amount of time. Our

emphasis is on fostering the growth of the associates within the Company through a policy of

internal promotion and a meritocracy system. At the end of 2011, the Parent Company had

15,596 associates.

Training and Development

In its fifth year of operations, the Americanas Development Center (CDA) consolidated the

training schedule that had been established the previous year. In 2011, we further increased the

number of man/hours of training offered, hitting the mark of 60,000 associates/training hours.

Our emphasis on the training of our associates and their internal development includes the

establishment of increasingly challenging targets and culminates in our slogan: ―We always

want more.‖

Recruiting Talent

Lojas Americanas policy is to develop talent from within by hiring associates for our internship,

trainee and new talents programs and for jobs at our business facilities. Thus, we emphasize

the recruitment of young university students from the country’s top universities and we provide

specific training that accounts for challenges particular to the retail sector and immerses the

associate in the company’s organizational culture.

15/ 32

Internship Program

Started more than ten years ago, the objective of the Internship Program is to recruit university

students with an entrepreneurial spirit. Thus, we look for young people whose profile fits with a

results-oriented team. During their participation in the program, the interns are introduced to

daily work routines in various departments at headquarters, distribution centers and stores.

Monthly training models are also offered during this period, and interns are given the opportunity

to better understand the company’s vision, mission and values, its primary features and its

respective departments, as well as the technical tools necessary to work in a specific field. The

countrywide program has brought many young professionals into the Company.

Trainee Program

The objective of the eighteen-month Trainee Program is to hire recent university graduates for

company management positions. During the program, trainees are given specific training and

are introduced to all company departments by the respective executive directors. Following

such, once the new hires are settled into their new department, they are given the opportunity to

pursue challenging projects right from the beginning of their careers.

New Talents Program

The Newcomer Program is geared toward the recruitment of young graduates and aims to

develop rapidly, young professionals to monitor the growth of the group companies.The talents

are allocated in areas since the beginning of the program, and undergo a 3-month training in

which they develop a vision of all areas of the Company.

16/ 32

5. AN OVERVIEW OF THE COMPANY’S FINANCIAL RESULTS

General considerations

The comparison of the information presented refers to Lojas Americanas’ results during the

fiscal years ending December 31, 2011 and 2010, except where otherwise indicated. The

accounting information that serves as the basis for the comments that follow are presented

according to the international financial reporting standards (IFRS), to the rules issued by the

Brazilian Securities Exchange Commission (CVM) and in Reais (R$). The comparisons refer to

the 4th quarter of 2010 (4Q10) and to 2010.

2011 2010 Var. (%) Financial Highlights (R$ MM) 2011 2010 Var. (%)

6,047.6 5,344.6 13.2% Net Revenues 10,201.6 9,388.5 8.7%

1,927.0 1,625.0 18.6% Gross Profit 3,171.5 2,929.8 8.2%31.9% 30.4% +1.5 p.p. Gross Margin (%NR) 31.1% 31.2% -0.1 p.p.

1,025.1 811.0 26.4% EBITDA 1,448.9 1,355.4 6.9%

17.0% 15.2% +1.8 p.p. EBITDA Margin (%NR) 14.2% 14.4% -0.2 p.p.

319.4 286.6 11.4% Net Income 340.4 309.6 10.0%

5.3% 5.4% -0.1 p.p. Net Margin (%NR) 3.3% 3.3% -

Parent Company Consolidated

Net Revenues

In 2011, the consolidated net revenues of Lojas Americanas and its subsidiaries reached

R$ 10.202 billion, compared to R$ 9.389 billion registered in 2010, the equivalent to a growth of

8.7%.

The parent company's net revenues in 2011 totaled R$ 6.048 billion, compared to R$ 5.345

billion in 2010, equivalent to a growth of 13.2%.

In the ―same stores‖ concept, the growth of net revenues in 4Q11 over 4Q10 was 6%. In this

year, in the ―same stores‖ concept, the growth of net revenues was also 7% in relation to 2010.

2,7673,784

5,7316,975

8,1759,389

10,202

2005 2006 2007 2008 2009 2010 2011

Consolidated Net Revenue(R$ million)

CAGR = 24.3%

2,1322,630

2,087 3,933

4,6105,345

6,048

2005 2006 2007 2008 2009 2010 2011

Parent Company Net Revenue(R$ million)

CAGR = 19,0%

17/ 32

Gross Profit

Consolidated gross profit in 2011 reached R$ 3,171.5 million. Consolidated gross margin in

2011 was 31.1% of net revenues (NR), compared to the 31.2% margin in 2010, representing a -

0,1 p.p. variation.

In the parent company, gross profit in 2011 was 31.9% of the NR, an evolution of 1.5 p.p. when

compared to the gross margin of 30.4% of the NR reported in 2010.

Operating Expenses

In 2011, consolidated selling, general and administrative expenses totaled R$ 1,722.6 million, or

16.9% of net revenues (NR), over the R$ 1,574.4 million, or 16.8% of the NR in 2010.

In the parent company, consolidated selling, general and administrative expenses in 2011

totaled R$ 907.9 million, or 14.9% of the NR, a reduction of 0.3 p.p. (%NR) in relation to 2010.

18.418.8

19.4 19.2

18.1

16.8 16.9

2005 2006 2007 2008 2009 2010 2011

Consolidated Sales, General and Administrative Expenses (%NR)

18.8 18.617.8

17.4

16.2

15.2 14.9

2005 2006 2007 2008 2009 2010 2011

Parent Company Sales, General and Administrative Expenses (%NR)

EBITDA

In 2011, the consolidated EBITDA totaled R$ 1,448.9 million, representing a 6.9% increase in

relation to 2010. The consolidated EBITDA margin was 14.2% of net revenues in 2011,

compared to 14.4% of the NR in 2010.

In 2011, the parent company EBITDA reached R$ 1,025.1 million, the equivalent to a 26.4%

growth when compared to 2010. The EBITDA margin of the parent company for the period was

17.0%, 1.8 p.p. above the margin of the 2010.

The following table shows EBITDA per Company:

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EBITDA 2011 %NR 2010 %NR R$ ∆ %

1,448.9 14.2% 1,355.4 14.4% 93.5 6.9%

LOJAS AMERICANAS 1,025.1 17.0% 811.0 15.2% 214.1 26.4%

B2W 415.4 9.8% 547.0 13.4% (131.6) -24.1%

FAI, BWU e OUTROS 8.4 - (2.6) - 11.0 -

331 455

720 896

1,093

1,355 1,449

12.0% 12.0%12.6%

12.8% 13.4%

14.4%14.2%

2005 2006 2007 2008 2009 2010 2011

EBITDA (R$ million) EBITDA (% NR)

Consolidated EBITDA

CAGR = 27.9%

246 306

393

541 644

811

1,025

11.5% 11.6%12.3%

13.8% 14.0%

15.2%

17.0%

2005 2006 2007 2008 2009 2010 2011

EBITDA (R$ million) EBITDA (% NR)

Parent Company EBITDA

CAGR = 26.9%

Financial Result

The consolidated financial expenses in 2011 totaled R$ 716.6 million, representing a variation of

+18.2% in relation to the expenses of R$ 606.4 million registered in 2010.

In the parent company, the financial expenses in 2011 totaled R$ 397.9 million, a variation of

+43.5% in relation to the R$ 277.2 million financial expenses registered in 2010.

For a better evaluation of the parent company’s net financial result we must consolidate the

revenues and financial expenses of the non-operating subsidiaries (Klanil, Louise, BWU and

others). Thus, in the following table we present a view of the financial result with the

aforementioned effects.

Breakdown of the Net Financial Result - R$MM 2011 2010 ∆ %

Parent Company Net Financial Result (before non-operating subsidiaries and FAI) (397.9) (277.2) 43.5%

(+) Net Financial Result of Non-Operating Subsidiaries and FAI 53.3 31.7 68.1%

(+) B2W Net Financial Result - Consolidated (372.0) (360.9) 3.1%

Consolidated Net Financial Result (716.6) (606.4) 18.2%

The parent company’s financial expenses in 2011, taking into account the aforementioned

effects and before B2W, totaled R$ 344.6 million, representing a 40.4% increase in relation to

the R$ 245.5 million financial expenses registered in 2010.

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The Company continues to reaffirm its commitment to a conservative cash investment policy,

manifested by the use of hedge instruments in foreign currencies, to offset eventual exchanges

fluctuations, whether relative to financial liabilities or total cash position. These instruments

offset the foreign exchange risk, transforming the cost of the debt to local currency and interest

rates (as a percentage of CDI*). Similarly, it is worth mentioning that the Company’s cash is

invested with Brazil’s largest financial institutions.

*CDI - Interbank Deposit Certificate: average rate of funding through the interbank market

Net Result and Result per Share

The consolidated net income in 2011 was R$ 340.4 million, representing an evolution of 10.0%

when compared to the R$ 309.6 million registered in 2010. The parent company’s net income in

2011 was R$ 319.4 million, a growth of 11.4% when compared to the R$ 286.6 million

registered in 2010.

In 2011, the consolidated net income per outstanding share (Weighted average excluding

treasury shares) was R$ 0.45995, 8.1% greater than the amount of R$ 0.42539 presented in the

previous year. Net income per outstanding share (Weighted average excluding treasury shares)

of the parent company was R$ 0.43159, 9.6% greater than the R$ 0.39370 from the previous

year.

The following table shows the main variations from EBITDA to net result:

Reconciliation of the Net Result - R$ MM 2011 2010 ∆ %

EBITDA 1,448.9 1,355.4 6.9%

(+) Depreciation / Amortization (159.9) (130.4) 22.6%

(+) Net Financial Result (716.6) (606.4) 18.2%

(+) Minority / Statutory Participation 17.3 (31.9) -154.2%

(+) Income tax and social contribution (120.2) (152.9) -21.4%

(=) Net Result 340.4 309.6 10.0%

Result per share R$ 0.45995 R$ 0.42539 8.1%

Weighted average of outstanding shares (thousand) 740,155 727,860

* In the old accounting rules, considered as "non-operating income".

Consolidated

Indebtedness Lojas Americanas uses its cash flow giving priority to investments that generate the best returns

for shareholders. Thus, we have listed below the main actions carried out in the period between

01/01/2011 and 12/31/2011:

Investments made by Lojas Americanas and B2W in property and intangible assets

(websites and systems development) of R$ 701.0 million;

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Capital investment in FAI – Financeira Americanas Itaú, in the amount of R$ 60.0

million;

Payment of interest on own equity and gross dividends in the amount of R$ 71.3 million.

Lojas Americanas’ consolidated short and long-term loans and debentures on December 31,

2011 totaled R$ 4,996.7 million. If we deduct the cash position of R$ 4,528.4 million (cash +

money market investments + accounts receivable from credit and debit cards + 50% of FAI’s

consumer financing) from total loans, we arrive at a net debt position of R$ 468.3 million.

R$ million

Indebtedness 12/31/2011 12/31/2010

Short Term Debt 1,241.0 1,013.0

Shot Term Debentures 192.5 350.5

Shot Term Indebtedness 1,433.5 1,363.5

Long Term Debt 2,593.3 2,257.5

Long Term Debentures 969.9 522.3

Long Term Indebtedness 3,563.2 2,779.8

Total Debt (1) 4,996.7 4,143.3

Cash and banks 131.5 162.4

Money market investments 2,260.3 1,853.5

1,589.4 1,229.2

547.2 584.7

Total Cash (2) 4,528.4 3,829.8

Net Cash (Debt) (2) - (1) (468.3) (313.5)

Net Debt / EBITDA LTM 0.3 0.2

Average Maturity of Debt 1,064 892

Consolidated

Accounts Receivable

Customers financing - FAI

In 12/31/2011, the Company’s net debt was 0.3x of the accumulated 12-month EBITDA. It

should be noted that the average maturity of the debt went from 892 days in 4Q10 to 1.064 days

in 4Q11 (from 29 to 35 months).

In order to face the uncertainties and the volatility of the financial market, Lojas Americanas is

guided by the principle of preserving cash and extending its debt profile. Along the past years, a

number of measures were taken with this objective in mind, which permits us to consolidate the

Company’s long-term growth plan.

In September 2011, the Company reported the realization of its 4th issue of simple debentures,

non-convertible into shares, in the global total amount of R$ 500 million. The funds obtained

through the Debentures will be used for the re-profiling of the Company’s already contracted

debt as well as to reinforce its cash position.

In September 2011, the BNDES approved the operation of a project designed to obtain funds

permitting investments in the Company’s organic expansion through opening of new stores,

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technology and operations. The project is divided into (i) a private debentures issue, with a

floating guarantee, convertible into preferred Company stock in the total amount of R$ 292.6

million and (ii) a line of credit designed to obtain funds within the Project Financing Program

(FINEM) in the amount of up to R$ 442.1 million.

In January 2012, the Company reported the 6th Issue of simple debentures, non-convertible into

shares, for a global total amount of R$ 500 million. The funds obtained through the Debentures

will be used for reinforcing the Company’s cash as well as lengthening its debt profile.

Accounts receivable are composed of receivables from credit cards, net discounted value which

have immediate liquidity and can be considered as cash. The breakdown of accounts receivable

from the consolidated viewpoint of Lojas Americanas is shown in the following table:

Accounts Receivable Conciliation 12/31/2011 12/31/2010

Gross Credit-Cards Receivable 2,918.4 2,430.5

Electronic debits and checks Receivables 21.0 13.3

Receivable Discounts (1,350.0) (1,214.6)

1,589.4 1,229.2

Present-value adjustment (31.6) (32.5)

Customers financing - FAI 547.2 584.7

Allowance for doubtful accounts (188.8) (147.5)

Other accounts receivable 266.9 226.4

Consolidated Net Accounts Receivable 2,183.1 1,860.3

Accounts Receivable from credit / debit cards

Because of the adoption of the new CPCs/IFRS, in particular the CPC 38 and its corresponding

IAS 39, the Company began to write off (derecognize) receivables from credit card

administrators the moment they were effectively discounted (as of the explanatory notes of the

financial statements). However, to better demonstrate the volume of receivables discounted on

the base-dates analyzed, in the chart above the Company presents the accounts receivable

adjusted by the discounts made until the base-dates under analysis.

No exposure to foreign exchange variations

At the end of 2011, Lojas Americanas S.A.’s balance sheet recorded foreign currency

denominated debt. Such debt, however, is FULLY PROTECTED against any foreign exchange

fluctuations through derivative (swap) operations that replace the foreign exchange risk for the

variation in the basic Brazilian interest rate (CDI).

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Sales by means of payment

The breakdown of the sales, by means of payment in 2011 and 2010 can be seen in the following table:

Means of Payment 2011 2010 Var. 2011 2010 Var.

Cash 58% 56% +2 pp 47% 42% +5 pp

Credit Cards* 42% 44% -2 pp 53% 58% -5 pp

*Considers the third parties credit cards, the Financeira Americanas Itaú and Submarino Finance private label cards.

Parent Company Consolidated

Parent Company net working capital

Lojas Americanas’ net working capital in 4Q11 was -18 days, representing a reduction of 2 days

when compared to the -16 days of working capital need presented on 4Q10.

-16

-18

12/31/2010 12/31/2011

-2 days

(Net Working Capital = Days of Inventory + Days of Accounts Receivable – Days of Suppliers)

The change in Lojas Americanas’ net working capital during the period demonstrates the

constant striving to improve our operating processes and the development of partnerships with

our suppliers.

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Indicators of B2W – Companhia Global do Varejo

The last five years for B2W have been a period of strong growth, intense transformation, intense

learning and major changes to the Brazilian retail market.

During this period, many challenges were successfully met while others took longer for the

desired effects to take place. In the last quarter of 2010, logistical and service instabilities, kept

B2W from reaching our major goal in 2011: to offer our clients the best selection of products at

competitive prices, with better quality customer service and assistance.

In 2011, conservative measures for deliveries designed to improve our customer service limited

our growth. At the same time, a more aggressive price and shipping policy hurt our profitability.

From this point of view, the year was a period of transition during which many problems were

addressed and corrected, but results were far from what we had expected.

This set of initiatives has already generated important effects and we have registered

significant improvements in our operating indicators. This trend was confirmed by the sharp

decline in the number of complaints received by the consumer defense agencies. B2W has

emerged from this period having learned a lot and also with the certainty that having the client

as the center of its concerns is fundamental for the success of the businesses.

The Company is working hard and very enthusiastically at transforming the processes, investing

in the infrastructure that is necessary for B2W to boost its competitive advantages and capture

the innumerous growth opportunities that will emerge in the e-commerce industry in the

forthcoming years.

Despite the challenges, Lojas Americanas reinforce the trust in B2W’s business plan and is

convinced that the Company is prepared to capture the opportunities during 2012. During the

year B2W intends to achieve new and higher levels of efficiency, always seeking new occasions

in all operations to better serve our customers.

We are presenting below the results for 4Q11 and 2011, of our subsidiary B2W - Companhia

Global do Varejo (BOVESPA: BTOW3).

The accounting information that serves as the basis for the following comments are presented

pursuant to international financial reporting standards (IFRS) as well as the regulations issued

by the Brazilian Securities Exchange Commission (CVM) and the Novo Mercado listing

regulations, and are in reais (R$). The comparisons are with 2010.

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Net Revenue

In 2011, the consolidated net revenue reached R$ 4,232.1 million, a growth of 3.9% in

relation to 2010. The net revenue in the parent company in 2011 was R$ 3,848.4 million,

growing 1.2% in relation to 2010;

EBITDA

Consolidated EBITDA totaled R$ 415.4 million, which represents 9.8% of the net revenue in

2011. In the Parent Company, the EBITDA was R$ 321.8 million, representing 8.4% of the

net revenue in 2011;

New Distribution Centers

Company inaugurated in November/11 a new Distribution Center in Recife in Pernambuco

and signed the contract to install another one in Uberlândia, Minas Gerais;

Start of operation of B2W Viagens in Argentina

B2W Viagens started in the end of 2011 the operation in Argentina through the brand

Submarino Viajes;

Launching of the section “Atrações” in B2W Viagens’ websites

B2W Viagens launched in the websites the section ―Atrações‖, where are offered tickets for

parks, tourist attractions, tours and others;

Submarino Card share reached 37% of the website’s sales

The share of the Submarino Card reached 37% of Submarino’s website sales in 4Q11.

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Consolidated Income Statement

Lojas Americanas S.A.

Income Statements

(in million of Brazilian reais, except earnings per share) 4Q11 4Q10 Delta 2011 2010 Delta

Gross Sales and Services Revenue 3,642.4 3,390.2 7.4% 11,732.0 10,791.8 8.7%

Taxes, returns and discounts on sales and services (498.9) (445.4) 12.0% (1,530.4) (1,403.3) 9.1%

Net Sales and Services Revenue 3,143.5 2,944.8 6.7% 10,201.6 9,388.5 8.7%

Cost of goods and services sold (2,107.0) (1,956.0) 7.7% (7,030.1) (6,458.7) 8.8%

Gross Profit 1,036.5 988.8 4.8% 3,171.5 2,929.8 8.2%

Gross Margin (% of NR) 33.0% 33.6% -0.6 p.p. 31.1% 31.2% -0.1 p.p.

Operating Revenue (expenses) (510.6) (439.9) 16.1% (1,882.5) (1,704.8) 10.4%

Selling expenses (425.2) (368.7) 15.3% (1,577.3) (1,434.8) 9.9%

General and administrative expenses (45.9) (33.5) 37.0% (145.3) (139.6) 4.1%

Depreciation and amortization (39.5) (37.7) 4.8% (159.9) (130.4) 22.6%

Operating Income before net financial result and equity

accounting525.9 548.9 -4.2% 1,289.0 1,225.0 5.2%

Net Financial Result (233.9) (221.0) 5.8% (716.6) (606.4) 18.2%

Other operating income (expenses)* (37.7) (90.3) -58.3% (129.1) (124.2) 3.9%

Profit sharing for employees / minority interest (7.4) (11.0) -32.7% 17.3 (31.9) -154.2%

Income tax and social contribution (66.7) (67.8) -1.6% (120.2) (152.9) -21.4%

Net Income 180.2 158.8 13.5% 340.4 309.6 10.0%

Net Margin (% of NR) 5.7% 5.4% +0.3 p.p. 3.3% 3.3% -

EBITDA 565.4 586.6 -3.6% 1,448.9 1,355.4 6.9%

EBITDA Margin (% of NR) 18.0% 19.9% -1.9 p.p. 14.2% 14.4% -0.2 p.p.

Weighted average of outstanding shares (thousand) 740,155 727,860 740,155 727,860

Net Income per Outstanding Share R$ 0.24345 R$ 0.21824 11.6% R$ 0.45995 R$ 0.42539 8.1%

* In the former accounting rules, considered as "non-operating income".

Consolidated

Periods ended in December, 31

Consolidated

Periods ended in December, 31

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Parent Company Income Statement

Lojas Americanas S.A.

Income Statements

(in million of Brazilian reais, except earnings per share) 4Q11 4Q10 Delta 2011 2010 Delta

Gross Sales and Services Revenue 2,374.2 2,140.8 10.9% 7,139.5 6,318.0 13.0%

Taxes, returns and discounts on sales and services (367.7) (323.6) 13.6% (1,091.9) (973.4) 12.2%

Net Sales and Services Revenue 2,006.5 1,817.2 10.4% 6,047.6 5,344.6 13.2%

Cost of goods and services sold (1,292.2) (1,204.3) 7.3% (4,120.6) (3,719.6) 10.8%

Gross Profit 714.3 612.9 16.5% 1,927.0 1,625.0 18.6%

Gross Margin (% of NR) 35.6% 33.7% +1.9 p.p. 31.9% 30.4% +1.5 p.p.

Operating Revenue (expenses) (288.1) (258.9) 11.3% (1,013.4) (917.2) 10.5%

Selling expenses (238.0) (213.8) 11.3% (840.3) (754.8) 11.3%

General and administrative expenses (18.5) (13.8) 34.1% (61.6) (59.2) 4.1%

Depreciation and amortization (31.6) (31.3) 1.0% (111.5) (103.2) 8.0%

Operating Income before net financial result and equity

accounting426.2 354.0 20.4% 913.6 707.8 29.1%

Net Financial Result (132.0) (79.5) 66.0% (397.9) (277.2) 43.5%

Equity accounting 3.5 (3.1) -212.9% (14.5) 29.7 -148.8%

Other operating income (expenses)* (32.1) (32.8) -2.1% (19.9) (33.8) -41.1%

Profit sharing for employees / minority interest (19.2) (17.2) 11.6% (19.2) (17.2) 11.6%

Income tax and social contribution (71.3) (68.4) 4.2% (142.7) (122.7) 16.3%

Net Income 175.1 153.0 14.4% 319.4 286.6 11.4%

Net Margin (% of NR) 8.7% 8.4% +0.3 p.p. 5.3% 5.4% -0.1 p.p.

EBITDA 457.8 385.3 18.8% 1,025.1 811.0 26.4%

EBITDA Margin (% of NR) 22.8% 21.2% +1.6 p.p. 17.0% 15.2% +1.8 p.p.

Weighted average of outstanding shares (thousand) 740,155 727,860 740,155 727,860

Net Income per Outstanding Share R$ 0.23654 R$ 0.21017 12.5% R$ 0.43159 R$ 0.39370 9.6%

* In the former accounting rules, considered as "non-operating income".

Parent Company

Periods ended in December, 31

Parent Company

Periods ended in December, 31

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6. GOVERNANÇA CORPORATIVA E MERCADO DE CAPITAIS

Since 1940, Lojas Americanas S.A. has been listed on the Brazilian Stock, Mercantile & Futures

Exchange (BM&FBOVESPA). The Company has a shareholder base composed of common

shares (LAME3) and preferred shares (LAME4). Lojas Americanas has a Board of Directors

consisting of seven members, five appointed by the controllers, one appointed by minority

shareholders and one appointed by the Board of Directors.

Below is a brief description of the main corporate events that occurred in the year:

On March 14, 2011, Lojas Americanas S.A. and Itaú Unibanco Holding S.A., made an

announcement to the market to inform it of the readjustment to the structure of the association,

which resulted in the formation of Financeira Americanas Itaú S.A. The readjustment reflects the

new realities of the Brazilian credit market. All agreements relating to the association were

consolidated into a single contract maturing in 2026 and, as per the new contract, LASA will

receive approximately R$ 10 million from Itaú Unibanco.In addition, for a period of 5 years, Itaú

Unibanco shall pay additional compensating fees to LASA in the form of quarterly payments if

the conditions for a minimum profitability of FAI are not reached.

On April 30, 2011 the Company’s General and Extraordinary Shareholders Meetings were held,

at which the following Resolutions were approved:

1- To take recognizance of the accounts prepared by the managers and related financial

statements for the fiscal year ended December 31, 2010;

2- Allocation of the net income reported for the fiscal year ended December 31, 2010;

3- Proposal for the adoption of the Capital Budget for the fiscal year of 2011;

4- Increase of the Company’s Capital Stock in the amount of R$ 10 million;

5- Establishment of the Fiscal Council and the election of Mssrs. Ricardo Scalzo, Vicente

Antonio de Castro Ferreira and Márcio Luciano Mancini to the position of full members and

Mssrs. Carlos Alberto de Souza, André Amaral de Castro Leal, and Pedro Carvalho de Mello as

alternate members.

On August 26, at an Extraordinary Meeting of the Board of Directors, the members decided

unanimously to remove Ernst Young & Terco Auditores Independentes S/S and to authorize the

hiring of PricewaterhouseCoopers Auditores Independentes to audit the financial statements for

the periods ending at December 31, 2011 and 2012, including special reviews of the quarterly

information starting in September 30, 2011 for Lojas Americanas, in the manner and the

timeframe required by law.

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On October 26, during an Extraordinary Meeting of the Board of Directors, the shareholders

unanimously elected Cecília Sicupira Giusti and Steven Davis as new full members to occupy

positions on the Company's Board of Directors, in addition to those who currently make up the

board. Their terms of office will expire concurrently with the terms of office of the current

members at the General Shareholders Meeting of 2013.

The minutes of the meetings listed above, as well as other corporate and financial information of

Lojas Americanas S.A. are available for inspection on our Investor Relations website

(http://ir.lasa.com.br) and on the website of the Brazilian Securities and Exchange Commission

(www.cvm.gov.br).

100% Tag Along Rights for all Shareholders

Lojas Americanas has maintained a commitment, as part of its Bylaws, to concede full (100%)

tag-along rights for all of the Company’s common and preferred shares since 2006. This

guarantees that all Lojas Americanas’ shareholders will receive equal treatment in the event of a

change of ownership, with the right to sell their shares under the same conditions as the

controlling shareholders being guaranteed.

Establishment of B2W with high standards of Corporate Governance

At the end of 2006, Lojas Americanas announced the merger of its Americanas.com subsidiary

with Submarino. The operation resulted in the creation of B2W – Companhia Global do Varejo.

Lojas Americanas’ shareholders owned, at the time, 53.25% equity in the new company.

B2W was constituted under the rules established through the BM&FBOVESPA’s ―Novo

Mercado‖ (New Market), the highest level of Corporate Governance in Brazil. The rules include

the requirement of a shareholder base comprised exclusively of common shares and the

election of independent members to the Board of Directors. B2W’s Board of Directors is made

up of seven members, of which four are indicated by Lojas Americanas and three are

independent members. B2W also has a Fiscal Committee consisting of three members, two

appointed by the controller and one nominated by the minority shareholders.

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Dividends Policy

The Company’s Bylaws, in line with the principles of existing legislation, establish the minimum

value for dividends at 25% of net profit for the fiscal period, after the setting up of a 5% legal

reserve.

In 2011, R$ 71.3 million was distributed to the shareholders, of which R$ 47.8 million was in the

form of dividends and R$ 23.5 million was as payment of interest on own equity (before income

tax withheld at the source), based on the net profit realized during the year of 2010. For 2012,

the Board of Directors made a proposal for the payout of Interest on Own Equity in the total

amount of R$ 29.0 million (before income tax withheld at the source), being R$ 21.0 million

calculated based on the Net Income from the Intermediate Balance Sheet as at September 30

and R$ 8.0 million calculated based on Net Income for the year of 2011.

Share Buy-Back Program

Lojas Americanas has had a buy-back program in effect since 2003 for the purchase of

Company shares, with the objective of holding them in treasury or future cancellation. The

program calls for the buy-back of up to 10,788,942 common, nominative subscribed shares and

36,505,323 nominative subscribed preferred shares.

Stock

Lojas Americanas preferred shares (LAME4) are traded on the Ibovespa, the most important

indicator of the average performance of prices of shares traded on Brazilian stock markets.

Moreover, the Company’s common and preferred shares are part of the differentiated Share

Tag-Along Index (ITAG). This indicator is composed of the shares of companies that offer the

same conditions to minority shareholders in the event of a change in ownership control.

Furthermore, Lojas Americanas S.A. also is on other important indexes, such as the IBRX-50,

ICO2, ICON, IVBX-2, MLCX and MSCI-Barra.

Independent Auditors

Pursuant to CVM Instruction 381, the Company reports that its independent auditors did not

render any services unrelated to the auditing of the Company’s financial statements during the

fiscal year ending December 31, 2010.

The Company’s policy regarding the hiring of independent auditors for services not related to

the outside audit assures that there is no conflict of interest or loss of independence or

objectivity with regard to the independent auditors’ work.

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7. SOCIO-ENVIRONMENTAL ASPECTS

Social Aspects

Lojas Americanas is recognized in the market for generating internal opportunities and

developing its corps of professionals. Moreover, we send quality products at fair prices to

municipalities with little or no access to the variety that our Company offers, raising the quality of

life in such locations in an ethical and responsible manner.

Lojas Americanas promotes the Program for the Physically Challenged (PPD), a project that

encourages hiring employees with special needs and fosters the social inclusion of these

individuals by opening the door to the labor market.

The Young Apprentice Project is being developed together with the National Business

Apprenticeship Service (SENAC) or equivalent organizations in other cities where Lojas

Americanas has business units. The Program is designed to prepare young students for the

labor market. The contract is for a fixed period of time and, in counterpart, the candidate makes

a commitment to enroll in, and regularly attend, elementary school.

Environment

The Companhia Verde concept was created in 2007 and through a

multidisciplinary committee is engaged in the economic, social and

environmental areas as well as relations with our stakeholders (shareholders,

customers, suppliers, employees and society). Thus, the Committee works in all

divisions of the Company with the objective of putting Lojas Americanas on the

same level of companies that are reference in socio-environmental attitudes. For

that we work to increase our employees' awareness of the importance of being concerned about

the environment in their day-to-day activities and to develop a program of socio-environmental

projects applicable to the realities of business and communities.

Next, we highlight some of the main actions of the Companhia Verde in 2011:

We reached a milestone of 3 million returnable bags sold in our stores, featuring distinctive and

exclusive styles and at accessible prices. In our efforts to eliminate waste and reduce the

consumption of discardable plastic bags, the associates were oriented to encourage clients to

use the returnable bags to carry away their purchases.In the stores posters regarding the

improper disposal of plastic bags, are fixed in visible area and wide circulation.. In addition,

plastic bags sinks are made available for customers who wish to return them.

31/ 32

We continue the selective waste collection program at our Head Offices, Distribution Centers

and part of the stores aiming to eliminate and better dispose the waste that is generated. At the

same time, we developed training and communication programs to encourage the reduction in

the generation of waste and the consumption of natural resources. In 2011 we also have

continued to monitor water and energy consumption through an internal application that

facilitates weekly control, identifies anomalies and allows problems to be handled as soon as

they arise.

We continuously strive to be more transparent to the market and reduce our impacts on global

warming. Accordingly, we developed important initiatives in 2011:

We offer, in the Investor Relations website, a space to ―Companhia Verde‖. In this space, are

presented the Committee objectives, the Company’s Environmental Policy, the Carbon

Inventory and a contact e-mail. With this, it is possible that all interested people can be informed

about the company's position and clarify any questions that may arise.

We formalized, in our Code of Conduct, the Company’s commitment about:

1. Eradication of child labour;

2. Eradication of force or compulsory work;

3. Combating the practice of discrimination in all its forms;

4. Valuing diversity;

5. Prevention of harassment;

6. Respect to the free trade union association and right to collective bargaining;

7. Commitment for combating sexual exploitation of children and adolescents.

We are member of the Brazilian GHG Protocol Program and in 2011 we published our

Emissions Inventory through their Public Registry, on the website of the program. The Brazilian

GHG Protocol Program involves over 50 companies under the commitment of monitoring,

publishing and managing greenhouse gas emissions deriving from their operations.

Once again we are part of the Carbon Disclosure Project (CDP), a non-profit organization that

seeks to encourage transparency on publicly-held corporations climate management practices

and we are listed on the BM&FBOVESPA's Efficient Carbon Index, an indicator that takes into

consideration the efficiency of the greenhouse gas emissions of the most traded companies on

the stock exchange to comprise a stock portfolio.

Environmental education is an important activity for the Cia Verde. Training conducted at our

Americanas Development Center (CDA), newsletters sent by e-mail, a regular column on these

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topics in all of the editions of "Isto é LASA" (the in-house corporate newspaper), periodic pop-up

alerts on computers and orientation materials for new employees are some of the ways that the

company has found to increase the awareness and the engagement of all. In 2011, we extend

the campaigns for our clients through brochures we distribute in stores with guidance on topics

such as Nutrition Education, Conscious Consumption, Blood Donation, some of these in

partnership with the Ministry of Health. We will continue to rely on this involvement to achieve

even better results in 2012, making our Company more socially and environmentally

responsible.