4Q06/2006 Results Conference Call
Friday, February 16, 2007
Time: 12:00 p.m. (US EST) / 3:00 p.m. (Brasilia Time)
Tel: + 1 (973) 935-8893
Code: 8448313
Replay: + 1 (973) 341-3080
Lojas Físicas
Varejo Multi-canal
Produtos FinanceirosComércio Eletrônico, TV, Televendas eCatálogos
Multi-channel Retailer
Bricks-and-Mortar E-commerce, TV, Telephone Sales and catalogues
Financial Products
2
237 stores at the close of 2006 (372.1 thousand m2 of total sales area)
Acquisition of BWU - former BLOCKBUSTER® master-franchisee in Brazil – in January/2007,
adding 127 stores to the Company’s stores network, equivalent to 32 thousand m2
2006 Overview
In November/2006 was announced the merger proposal between Americanas.com and the e-
commerce portal Submarino to form a single company called B2W
The integration of B2W’s operations will lead to value creation, giving the Company additional
competitive advantages in the dispute with Brazil’s established retail majors.
247 points of sale
More than 600 thousand issued cards and financing volume of R$180 million at year-end
Bricks-and-Mortar Stores
Electronic Commerce
Financial Products
3
Strong Operating Growth (2006 x 2005)
Same-store net revenue growth of 12.8%
Gross Revenue per Associate 25.6% higher
EBITDA 38% higher (R$ 455.1 million) and maintenance of EBITDA Margin at 12%.
Operating Result 38% higher (R$368.7 million)
Consolidated investments in permanent and deferred assets totaled R$ 159.7 million
Inauguration of 45 stores – 32 traditional and 13 Express
Americanas.com/Shoptime: Gross Revenue grew by 76.7% and EBITDA grew
by 85.1%, reaching a 13.4% EBITDA margin.
In September/2006, 100% tag along rights were approved for the Company’s
common and preferred shares.
2006 Operating Highlights
EBITDAR$ MN
+ 37.5%455.1
2005 2006
330.9
4
Consolidated Gross Revenue(R$ mn)
4Q064Q05
1,821
1,315
+ 38.5%
CAGR 02/06: 27.2%
20062002 2003 2004 2005
5,020
3,640
2,949
2,3251,918
+ 37.9%
“Same Store Sales” Net
Revenue Growth 4Q06 / 4Q05:
+16.4%
Quarterly Accumulated
5
Gross Margin(% of NR)
Accumulated
20062002 2003 2004 2005
30.8
30.330.9
30.229.5
Quarterly
4Q064Q05
32.6
31.6
+ 1.0 p.p.
6
Consolidate Gross Revenue per associate
(R$ thousand):
229 266 309 344 432
Operating Expenses(% of NR)
CAGR 02/06: 17.2%
20062002 2003 2004 2005
+ 25.6%
18.8%18.4%18.9%19.0%
20.8%
237105 121 156 193
20062002 2003 2004 2005
Accumulated
Number of Stores
7
EBITDA and EBITDA Margin(R$ MN)
4Q05
205.9
4Q06
152.8
+ 34.8%
15.3% 15.1%
4Q06 x 4Q05 – EBITDA grew by 34.8% and EBITDA margin remained at the same level of 4Q05
2006 x 2005 – EBITDA grew by 37.5% and EBITDA margin remained flat when compared to 2005
455.1
330.9274.7
217.6
142.8
9.1%11.2% 12.1% 12.0% 12.0%
+ 37.5%
20062002 2003 2004 2005
Quarterly Accumulated
8
Financial Position
Gross Debt of R$1.7 billion
Cash allocation priorities in the last 12 months:
Consolidated investments in permanent and deferred assets : R$ 159,7 million
Payment of gross dividends: R$ 110 million
Share buy-back: R$ 34.2 million
Buy-back of the stake in Americanas.com: R$ 5.1 million
Net Cash of R$ 608.9 million
9
Americanas Taií
Focus on increasing credit and financial services offer to Lojas
Americanas’ clients, besides facilitating payment terms at bricks-and-mortar
stores and Americanas.com
247 points of sale, including 10 own stores.
600 thousand issued cards:
Private Label: 375 thousand
Personal Loan: 223 thousand
Co-Branded Credit Card: 22 thousand
Financing volume of R$ 180 million at year-end
10
Americanas.com / Shoptime (pro forma)
Gross Revenue vs. EBITDA Acom/Shoptime
(R$ mn and % NR)
Gross Revenue vs. EBITDA Acom/Shoptime
(R$ mn and % NR)
Quarterly Accumulated
501.0
30.6330.6
49.5
4Q05 4Q06
EBITDAGross Revenue
51.5% 61.8%+1.2 p.p.
4Q05 4Q06
13.3%
14.5%
1,528.5
77.0864.8
142.5
2005 2006
EBITDAGross Revenue
76.7 %85.1%
+0.6 p.p.
2005 2006
12.8%
13.4%
“Pro forma” : Americanas.com/Shoptime results from January, 1 to December 31, 2006
11
Share Performance - 2006
67.2% preferred (LAME4) and 26.6% common (LAME3) shares appreciation vs.
IBOVESPA’s performance of 32.9%
Higher liquidity - LAME4’s annual traded volume jumped by 70% over 2005
LAME4 inclusion in IBRX-50 and IBVX-2 stock indexes
LAME3 and LAME4 inclusion in ITAG stock index
LAME3 x LAME4 x IBOVESPA
jan-01 jan-02 jan-03 jan-04 jan-05 jan-06
LAME4 LAME3 IBOVESPA
2001 2002 2003 2004 2005 2006
12
2007 Priorities
Growth of “same-store” sales and operating cash generation through continuous
operational improvement;
Continued expansion of the bricks-and-mortar store network;
Optimization of B2W operations (Americanas.com, Shoptime and Submarino);
Adjustment of the assortment in the BLOCKBUSTER® stores, capture of synergies and
the offer of new products;
Emphasis on associate training and improvement of the IT and logistics structure to
help the Company face the challenges posed by its growth trajectory.
13
Statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Lojas Americanas, eventually expressed in this release, are merely projections and, as such, are based exclusively on the expectations of Lojas Americanas’ management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and are, therefore, subject to change without prior notice.
Investor Relations
Murilo Corrêa
Phone: +55 (21) 2206-6505 / Fax: +55 (21) 2206-6898
e-mail: [email protected]
IR website: http://ir.lasa.com.br
Lojas Físicas
Varejo Multi-canal
Produtos FinanceirosComércio Eletrônico, TV, Televendas eCatálogos
Multi-channel Retailer
Bricks-and-Mortar E-commerce, TV, Telephone Sales and catalogues
Financial Products
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