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BUSINESS TO WORLDCOMPANHIA GLOBAL DO VAREJO
3Q10 Results Conference Call and Webcast3Q10 Results Conference Call and Webcast
November 5th, 2010 (Friday)
Time: 10:00 a.m. (US EDT)12:00 p.m. (Brazil)
Phone: +1 (786) 924.6977
Code: B2W
Replay: until November 11th, 2010Access: +55 (11) 4688.6312 Code: 48090
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General Considerations
This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of B2W. These are merely projections and, as such, are based exclusively on the expectations of B2W’s management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitors’ pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in B2W’s filed disclosure documents and are, therefore, subject to change without prior notice.
The financial statements were prepared and are presented in accordance with the norms issued by the Securities Exchange Commission (known locally as CVM), as well as the Novo Mercado listing rules and include accounting changes introduced by Law 11,638/07, Provisional Measure 449/08, later converted into Law 11,941/09 and with the pronouncements, guidelines and interpretations issued by Accounting Pronouncements Committee (in Portuguese, CPC), in force on December 31, 2009, which will be different from those that will be used for preparation of financial statements of December 31, 2010. Except when otherwise specified, the analyses refer to the Consolidated results of B2W (Americanas.com, Submarino, Shoptime, Blockbuster Online, Ingresso.com, SubmarinoFinance and B2W Viagens).
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3Q10 Highlights
Gross Revenue (GR): +13%
EBITDA: +14%
Selling, General and Administrative Expenses: -1.0 p.p. (%GR)
EBITDA Margin over GR: +0.1 p.p.
Cash Conversion Cycle: 95 days
International Expansion: in addition to Mexico and Argentina, westarted selling movie tickets in Chile.
Submarino Card: more than 560 thousand cards issued and 30% ofparticipation in sales.
1,300 1,466
3Q09 3Q10
3,601 4,067
9M09 9M10
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Gross Revenue (R$ million)
Gross Revenue: +13% in 3Q10 and +13% in 9M10
+13%+13%
999 1,084
3Q09 3Q10
2,648 3,017
9M09 9M10
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Net Revenue (R$ million)
Net Revenue: +8% in 3Q10 and +14% in 9M10
+8%
+14%
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Tax ChangeFor comparison purposes, the margins usually calculated as a percentage
of the Net Revenue should be calculated as a percentage of the Gross Revenue.
R$ MM % NR R$ MM % NR % Δ p.p.Gross Revenue 4,067.4 134.8% 3,600.9 136.0% 13% -1.2 p.p.
Net Revenue 3,016.9 100.0% 2,648.0 100.0% 14% -
Gross Profit 804.4 26.7% 748.6 28.3% 7% -1.6 p.p.
EBITDA 352.4 11.7% 314.7 11.9% 12% -0.2 p.p.
R$ MM % GR R$ MM % GR % Δ p.p.Gross Revenue 4,067.4 100.0% 3,600.9 100.0% 13% -
Net Revenue 3,016.9 74.2% 2,648.0 73.5% 14% 0.7 p.p.
Gross Profit 804.4 19.8% 748.6 20.8% 7% -1.0 p.p.
EBITDA 352.4 8.7% 314.7 8.7% 12% 0.0 p.p.
9M09 VariationOVER NET REVENUE
9M10
9M09 VariationOVER GROSS REVENUE
9M10
12.0%
11.1%
9M09 9M10
11.7%
10.7%
3T09 3T10
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Selling, General and Administrative Expenses
Selling, General and Administrative Expenses: -1.0 p.p. in 3Q10 and -0.9 p.p. in 9M10 (%GR)
-1.0 p.p.-0.9 p.p.
315 352
8.7% 8.7%
9M09 9M10
111 126
8.5%8.6%
3Q09 3Q10
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EBITDA (R$ million and % of Gross Revenue)
EBITDA: R$126MM in 3Q10 and R$352MM in 9M10
EBITDA Margin over GR: +0.1 pp in 3Q10
14%12%
Financial Results (R$ million)
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Conciliation of Financial Results
3Q10 3Q09 Δ% 9M10 9M09 Δ%Financial Revenues without PV adjustments 9.1 6.6 38% 22.6 34.9 -35%Financial Expenses without PV adjustments (107.9) (87.5) 23% (290.5) (276.1) 5%
Net Financial Result without Adjustments (98.8) (80.9) 22% (267.9) (241.2) 11%
Reversion of PV Adjust. on Sales and Taxes - current year 23.0 21.9 5% 43.0 45.3 -5%Reversion of PV Adjust. on Sales and Taxes - previous year 4.3 10.2 -58% 32.0 59.8 -46%Reversion of PV Adjust. on suppliers (16.7) (18.1) -8% (47.7) (56.6) -16%
Reversions of Present Value Adjustments 10.6 14.0 -24% 27.3 48.5 -44%
Net Financial Result (88.2) (66.9) 32% (240.6) (192.7) 25%
Quarter Last 9 months
PV = Present Value Adjustments
Net Income (R$ million)
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Net Income: R$2.5MM in 3Q10 and R$11.8MM in 9M10
PRESENT VALUE EFFECTS
9M10 9M09 Δ%Accounted Net Income 11,8 33,5 -65%
(A) Operational Present Value Adjustments (30,8) (26,4) 17%
(B) Financial Present Value Adjustments 27,3 48,5 -44%
Net Present Value Adjustments (A + B) (3,5) 22,1 -116%Fiscal Effects 1,2 (7,5) -116%Present Value Adjustments in Net Income (2,3) 14,6 -116%
Net Income excluding Present Value Adjust. 14,1 18,9 -25%Net Margin (%GR) 0,3% 0,5% -0,2 p.p.
Last 9 months
Inventories
5962
48
5762
3Q102Q101Q104Q093Q09
Suppliers
6160
37
6671
3Q102Q101Q104Q093Q09
Receivables
979494101
106
3Q102Q101Q104Q093Q09
Cash Conversion Cycle
9596105
9297
3Q102Q101Q104Q093Q09
-10 days-3 days
-9 days -2 days
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Cash Conversion Cycle: Parent Company
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Logistic and Technological Integration
New Americanas.com website Drag and Buy Augmented Reality
Freight Menu
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International Expansion: 276 cinema’s rooms in Mexico, 74 rooms in Argentina and 96 rooms in Chile
Strong level of sales and growth
Permanent investment in innovation, variety of destinations and service quality
High growth levels, in line with business plan
Subsidiaries
Submarino Card’s participation on sales made on the Submarinowebsite reached 30%.
More than 560 thousand cards issued.
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Priorities for Next Quarters
Balance among growth of sales, operational margin and working capital
Scale Gain reducing operating expenses
Finalization of Operational and Technological integration of the brands
Increased active customer base, frequency of purchases and salesconversion
Improvement of our subsidiaries operation
Continuing the international expansion plan
Technology upgrade and innovation to all our business units
Continuous staff training.
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3Q10 Results Conference Call and Webcast
B2W Investor Relations Teamhttp://[email protected]: +55 (21) 2206.6000
BUSINESS TO WORLDCOMPANHIA GLOBAL DO VAREJO