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Transcript of José Galló - CEO - MZGroup Day_ing_final.pdf · Source: Valor Econômico – Accenture and Plano...
![Page 1: José Galló - CEO - MZGroup Day_ing_final.pdf · Source: Valor Econômico – Accenture and Plano CDE research MARKET POSITIONING consumers self definition Low middle class Middle](https://reader031.fdocuments.us/reader031/viewer/2022022715/5c0df90009d3f22e6d8c2d4a/html5/thumbnails/1.jpg)
José Galló - CEO
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José Galló - CEO
Overview and growth opportunities for Renner
Marcos Gouvêa de Souza – Outside Consultant
Growth in retailing
Paulo Soares – Chief Operating Officer
Compact stores
Haroldo Rodrigues – Procurement Officer
Management of suppliers
Leandro Balbinot – Chief Information Officer
Management by processes
Clarice Martins Costa – HR Officer
People to support the expansion process
José Carlos Hruby – CFO
Financial services: credit and co-branded cards
DAY’S AGENDA
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• Growth drivers
• Opportunities in the Retailing Operation vs international Benchmarks
• Potential Expansion by Region
• Consumer Market Potential
• Market Positioning
• Market Share x Share of Mind
• New Formats
• Compact Stores
OVERVIEW
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374,2
39,3
63,5 72,4
107,5
142,5
184,4
286,0
311,4
42,9
16,3% 15,9%17,7%
12,8%12,5%11,3%
7,4% 8,6%7,3%8,8%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
GROWTH DRIVERS
Note: 2005 includes Extraordinary Expenses from the Public Offering
EBITDA Evolution(In R$ MM)
EBITDA EBITDA Margin
Growth in Retailing
1
Reinforcing Presence in theExisting Markets
2
Geographical Expansion4
Additional Financial Services6
E-commerce7
Increase in Store Produtivity
New Formats5
3
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2009 2008 2009 2008 2009 2008
% Taxes over Sales 24.9% 25.2% 14.6% 14.9% N/D N/D
% Gross Margin 47.5% 46.4% 61.9% 61.8% 57.1% 56.8%
% SG&A /Net Renvenues -34.6% -35.0% -37.8% -36.6% -35.7% -35.8%
% Retailing EBITDA Margin 13.1% 11.9% 24.1% 25.2% 21.4% 21.0%
Inventory Turnover 5,5x 5,5x 4,0x 3,8x 5,3x 3,5x
LOJAS RENNER INDITEXH&M
Source: Companies sites and Lojas Renner’s adjustments and estimates
OPPORTUNITIES IN THE RETAILING OPERATION
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120
174
107
227
Total Stores
4 7 7 11Cap.
Int. - - - - 10 30 24 31Cap.
Int. 1 6 5 11
31 50 16 47Cap.
Int. 28 54 29 74
14 11 5 14Cap.
Int. 20 7 6 21
7 8 10 12Cap.
Int. 5 1 5 6
POTENTIAL FOR EXPANSIONnumber of stores by region
Source: Companies’Websites
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Evolution of Social Classes Distribution - 2006 to 2009(as a % of the total urban population)
Source: Target and Exame Magazine. Calculated as a % of the total urban population of 154.0 million people in 2006 of 159.4 million in 2009.
22% of consumptionIncome in excess of R$8,100
42% of consumptionIncome R$2,300 to R$8,100
6% of consumptionIncome less than R$912
30% of consumptionIncome R$950 to R$2.300
From 37.0 to 43.4 million people
From 60.6 to 77.1 million people
From 48.7 to 31.0 million people
From 7.7 to 7.9 million people
Classes D and
E
Class CClass BClass A
Renner’sfocus
5%5%
28%
48%
19%
24%
39%
32%
2006 2009
CONSUMER MARKETsocial income classes
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Consumption per Income Level - 2009 and 2010 (% growth per household)
Sourcee: Barclays Capital
RennerTarget
CONSUMER MARKETconsumption evolution
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9Source: Credit Suisse, Lojas Renner’s estimates and Companies’ websites
Fashion
Pri
ce
0% 20% 40% 60% 80% 100% 120%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
Informal Market
C&A
Supermarkets
Zara
RENNER
Riachuelo
Marisa
MARKET POSITIONINGapparel retail
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How people from different income levels define themselves
Source: Valor Econômico – Accenture and Plano CDE research
MARKET POSITIONINGconsumers self definition
Low middle class
Middle class
Rich
Poor
Upper middle
class
15%
1%1%
Income superior toR$ 6.001
Income from R$ 3.001 to R$ 6.000
Income from R$ 2.001 to R$ 3.000
Income from R$ 1.201 to R$ 2.000
Income from R$ 601 to R$ 1.200
Income up to R$ 600
4% 9% 15% 26% 47%2%
48%
35%
29%
59%
7%
1%
37%
51%
2%1%2%
32%
50% 53%
43%
10%
20%
A B C+ C- D E
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SoutheastRegion
Midwest, Northeast andNorth Regions
South Region
Renner Card’smarket share as a percentageof the potential market
Potential increase
Total market
MARKET SHAREshare of mind x market share
Renner Card Penetration over the estimated Potential Market
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NEW FORMATS
• Compact Stores
• Specialty Stores
• C / D Income Class
• Renner Home
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• Fewer risks if compared to a greenfield project or aqcuisition
• Dilutes costs
• Uses the same support structure
• Consistency with Renner’s strategy and positioning
• Greater opportunities for stand-alone stores and in specific city zones
• Greater market penetration
• Greater brand impact
COMPACT STORES MODEL
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14Source: Banco Itaú
RETURN ON INVESTED CAPITALP/E x ROIC
CBD
Guararapes
B2W
Lojas Americanas
Hering
Marisa
RENNER
6
11
16
21
26
31
36
41
46
5% 10% 15% 20% 25% 30% 35%
P/E
2010
ROIC
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Paulo Soares - COO
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KEY POINTSin store expansion
• Definition of target population and cities
• Measurement of attraction capacity between cities (metropolitan areas, regional capital and regional center)
• Definition of commercial location
• Estimate of degree of competition (brand and quality of operation)
• Definition of product mix
• Sales estimate
• Efficiency of store operation
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Identify locations with consumption density
sufficient to justify new stores in the network
EXPANSION OBJECTIVE
21States
65Cities
123Stores
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INCOME GROUP FOCUS A- B and C+
BRAZIL
• 5,565 municipalities
• 194 million inhabitants
• R$ 1.74 trillion in consumption potential
POTENTIAL CUSTOMERS
• Potential Renner Market: R$ 112 billionAnnual consumption of apparel, footwear, fragrances and cosmetics
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• Increased sales at existing stores
• Opportunities at stand-alone stores
• New formats
IDENTIFIED OPPORTUNITIES
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EXPANSION POTENTIALat stand-alone stores
44
123
38
8
129
109
69 115
Mall stores Stand-alone stores
Source: companies’ website
173
232
10712325%
53%
36% 7%
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PRINCIPAL CHARACTERISTICScompact stores
• Same target public as the current model
• Average size of 1.2 thousand m2
• Smaller back office
• More frequent deliveries of supplies
• Differentiated equipment/greater display capacity
• Capex proportional to store size
• Returns similar to existing stores
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STORE PRODUCTIVITYnet sales per m2
Potential of increase Current productivity
CurrentRenneraverage
Average Estimate ofCompact Stores
34 stores 72 stores 17 stores
SouthRegion
Souteast andMidwestRegions
North andNortheastRegions
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POTENTIAL EXPANSION PLANcompact stores
Preliminary study indicates potential for opening between 80-100 new units in the compact store format in 5 years
Rollout rate of current stores continues unchanged at between 10-15 units per year 254
224
194
164
134
12011095
81
666258545449
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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Haroldo Rodrigues – Procurement Officer
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Management of
Suppliers
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• We buy 85% of our products in Brazil
• We have competitive industries
Jeans
Knitwear
Lingerie
Part of the footwear sector
• Advantages:
Responsiveness
Culture of Brazilian fashion
Shorter processes and leadtimes
HOW WE ARE IN BRAZIL
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• Gradually developing this base
• Represents 15% of our businesses
• Very competitive in categories such asTailoringJacketsAccessories
• Advantages:
Prices
Volume of supply
Differentiated raw material
HOW WE ARE WITH IMPORTS
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SegmentNumber of
companies bysegment
Averageannual sales /
company(MM USD)
Number ofemployees
Average numberof employeesper company
Comments
FibersFilaments
15 93.3 11,000 733
• Major companies• Capital intensive industry• Principal companies in the sector: Antex,
Avanti, Fit, Kordsa, M&G, Radici, Polyenka, Vicunha, Unifi, Invista
Spinning 417 13.7 78,300 187• Large or average companies• Scale is vital for diluting fixed costs
Weaving 596 18.3 101,000 170• Large or medium size companies• Scale is vital for diluting fixed costs
Knitwear 2,511 2.6 122,000 49 • More competitive market and with fewer entry barriers (less equipment)
• Larger number of small companies competing in the marketClothing 23,276 1.7 1,224,000 45
Source: Brasil Têxtil 2008 (IEMI). Information relates to 2007
STRUCTURE OF TEXTILE COMPANIES
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• Corporate approximation with suppliers with a view to developing joint policies
• Training of suppliers through the Renner University Program
• To share medium and long-term planning with a view to sounder investment decisions on the part of suppliers and a reduction in costs
• Triangular raw material transactions
• Strategic management of the principal suppliers
• Development of new suppliers
• Certification of Renner Quality with support of SGS
INITIATIVES IN THE DOMESTIC MARKET
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Objective:
• Make virtual courses available to our suppliers (supply chain) given them conditions to develop themselves and to achieve greater technical capacity, aligned to the Renner quality requirements.
Public:
• Suppliers from the Procurement Department. Currently 29 companies were already contemplated.
Methodology:
• Development of a schedule of courses for self development;• Technical Courses of Quality.
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• Services rendered to Renner
Manufacturers inspections / auditingOrder inspections
• Swiss multinational company. Global leader in inspections, tests and certifications;
Established in Brazil since 1938;Has 29 branches and 16 laboratories;More than 2,000 employees;Started working with Renner in July, 2005
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• Development of new markets ThailandIndonesiaVietnametc...
• Development of new suppliers
• Consolidation of work with the largest suppliers
• Consolidation of negotiations involving large categories
INITIATIVES IN IMPORTS
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3333
Leandro Balbinot – CIO
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A Company’s Strategy only takes place with Execution Discipline
CORPORATE PROCESSESstrategy & execution alignment
Execution
Strategy
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CORPORATE PROCESSESexecution discipline
• Lojas Renner Corporate Processes focus on Execution Discipline and Productivity Culture for the entire company
• As a Execution Company, we have a NATURAL PACE on processes execution, delivering consistent results. This pace has to be not only kept but also accelerated to support growth.
• Execution is guaranteed through :
• DISCIPLINE
• Taking in account ALL ELEMENTS affecting results
• Having STANDARD PROCESSES, adapted to current situation but ready for the future, supporting growth
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CORPORATE PROCESSESvalue creation
Corporate Processes Standardization & Management allows :
Operational Efficiency Increase : Shorter Execution Cycles, Lower Costs, Higher Work Capacity without staff increase
and Quicker Decision Process
Control & Compliance : Real-time control over processes, promoting standardization through the entire
company, emphasizing policies, regulations and best practices
Leverage Scale and Synergy while growing : New Business Units aggregation, New employees and new procedures in a standard
way, safely and efficiently
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� Guarantee link between strategy and
execution
� Power for Expansion
� Market and Customer Driven
� Productivity Increase
� Increase Customer Delight
Stores
Distribution Centers
Headquarters
BUs
Pragmatic Actions aiming
processes improvement
Renner Management Methodology
Renner Management Methodology
Goals & Benefits
Process Transformation through Management
CORPORATE PROCESSESprocess transformation
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CORPORATE PROCESSESproven benefits
Processes Standardization and Consistent Execution :
• Increase productivity
• Reduce errors, improving quality
• Increase Customer Delight
• Allow Imediate actions to relocate resources
• Allow management of Peaks
• Reduce substantially employee frustration and elevate moral
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Existing Processes
Alignment with Company’s Strategy
Process Standardization
Best Practices Observation
New Defined Process
CORPORATE PROCESSESworking model
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Drivers for Proposed Model
1. Design of Existing Processes
Proposed Model
2. Processes Analysis to identify Improvement Oportunities
5. Proposed Model Definition
4. Organizational Detailed Analysis
3. Productivity Mapping and Time Counting
Threads
Processes Organization & Sizing
Technology Training & Communication
CORPORATE PROCESSESworking model
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DIMENSIONS INDIVIDUAL OBJECTIVES
Enchantment
Productivity
Confidence
Maturity
• Productivity Analysis of each process
• Service Level and Availability of each process
• Enchantment Polls with Costumers
• Maturity Degree of each process
Adherence • Adherence to defined standard process
CORPORATE PROCESSESdimensions
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- Agenda -
- Adherence Checklist -
- Basic Execution -
Efficient
Execution
Process Management & Basic Execution
• Checks Execution Quality
• Measures adherence to each process
• Daily Activities by management profile
- KPI Panel -
• Daily Check of KPIs
CORPORATE PROCESSESprocess management
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Standard Processes
The Renner Way on ours Process Books
Sales & Quality Maximization
More Enchantment to our Customers
More Enchantment to our colleagues
Best Practices Sharing
CORPORATE PROCESSESprocess books
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CORPORATE PROCESSESprocess books
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“GOAL is to be the best on what we do. There are NO alternatives.”
Prof. Vicente Falconi
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Clarice Martins Costa – HR Officer
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Formation of Leaders andSuccessors
CEO Officers Managers
HR policies and practices
Leader as a catalyst for forming leaders
Sustainabilty
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GAPHigh Performance
Group
TraineeSupervision
Program
PLFFundamental
LeadershipProgram
PLEExecutive
LeadershipProgram
Employee Supervisor Manager
Continued Essential Formation
Supervisors’IntegrationProgram
ManagementTraineeProgram
WelcomeProgram
ESSENTIAL FORMATIONof the Renner leader
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PLE – Leadership Levels – Learning and Environment
EnterpreneuerFormation
External
Internal
Focus on cultural integration and on theessencial knowledge of the business
Focus on autonomy, criticalthinking and on innovation
EnvironmentOriented
LearningOriented
CompleteFormation
EssentialFormation
BasicFormation
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Value Proposition:• Business and Value Chain
• Sustainability
Management:• Management Model
• Management of People and Leadership
Culture:• Philosophy and Values
Pillars of Formation
EXECUTIVE LEADERSHIP PROGRAM
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SUCCESSION PLAN
Performance Evaluation PDIs
SuccessionCommittee
CalibrationCommittees
Performance Matrix
Phases of the process
Assessment
Annual process
3rd year of the complete cycle (2008 - 2009 - 2010)
March December
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José Carlos Hruby - CFO
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General Manager
Risk &Fraud Prev.
FinancialPlanning
Operations &Back Office
Credit &Collection
Loan& Services
CardsChannelsCRM
ORGANIZATION CHART - 2010
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� Installation of the New Collection
Platform
� Integral Centralization of Credit
� Realize – Unification of Customer Service
� Renner Mastercard / Visa Card
� New Loan Products/Insurance
� Financial Institution
Implemented
In progress
2009 2010
� Realize – Unification of Customer
Service
� Renner MasterCard / Visa Card
� New Loan Products/Insurance
� Financial Institution
� Relationship Program
�
�
�
�
�
�
�
�
�
�
�
�
�
PROJECTS
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Risk Indicators1Q10
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� Installation of New Collection Platform
� Integral Centralization of Credit
� Risk Clusterization by Region and Stores
� Improvement in Credit Policy
� Change in collection strategy
2009
GREAT INITIATIVES IN CREDIT, RISK AND COLLECTION
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JAN FEV MAR ABR MAI JUN JUL AGO SET OUT NOV DEZ
2008 2009 2010
Change in collection strategy
Change in limits policy
Improvement in quality of credit (Risk clusterization )
Updating of BehaviorScore models
Sensitivity Curve
M+
5 P
riva
teL
ab
el
RISK INDICATORS
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0+
5 P
rivate
Lab
el
JAN FEV MAR ABR MAI JUN JUL AGO SET OUT NOV DEZ
2008 2009 2010
JAN FEV MAR ABR MAI JUN JUL AGO SET OUT NOV DEZ
2008 2009 20100+
8 P
rivate
Lab
el
RISK INDICATORSM+5
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JAN FEV MAR ABR MAI JUN JUL AGO SET OUT NOV DEZ
2008 2009 2010
M+
5 P
rivate
Lab
el
RISK INDICATORSM+5
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JAN FEV MAR ABR MAI JUN JUL AGO SET OUT NOV DEZ
2008 2009 2010
*FPD II (First Payment Default) = Customers that have failed to make the first installment payment after 60 days.
FPD II (First Payment Default)
RISK INDICATORS delinquency
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Total credit-denied customers during the month
fev/0
8m
ar/0
8abr
/08
mai/
08jun
/08
jul/0
8ago
/08
set/0
8out
/08
nov/0
8dez
/08
jan/0
9fe
v/09
mar
/09
abr/0
9m
ai/09
jun/0
9jul
/09
ago/0
9se
t/09
out/0
9nov
/09
dez/0
9jan
/10
fev/1
0
Indicador Inadim. Renner Indicador Inadim. Serasa Experian
Indicator shows major volatility in theseasonally-adjusted period.
Reports decliningtrend due to goodcollection mgment
-34.52%
-2,22%
-4.96%
4.46%
8.01%
-20.23%
Reported the largest year onyear drop for the months ofFebruary since 2004.
*Percentage change on the same month for the preceding year
RISK INDICATORS credit-denied customers
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Renner Card Approval Rate
JAN FEV MAR ABR MAI JUN JUL AGO SET OUT NOV DEZ
2009 2010
Results of adopted strategies:
• Standardization of the processes;
• Risk Clusterization;
• Better quality of proposals;
• Greater accuracy of scoring models.30.27% 13.64%
6.56%
Increase in credit approval
20% 100%
Centralized credit decision
CREDIT INDICATORRenner card
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6 88 3
1 0 912 8 1 3 6
20 0 5 2 00 6 20 07 2 00 8 2 0 09
C art õe s (m il h õ e s )
�+2 2 ,3 %
�+3 0 ,8 %
�+1 7 ,6 % �
+9 ,0 %
1 1 51 42
1 7 421 5
2 5 5
20 0 5 2 00 6 20 07 2 00 8 2 0 09
F a t u ram en to (R $ b i lh õ e s )
�+2 3 ,0 % �
+2 2 ,5 % �+2 3 ,8 %
�+1 8 ,9 %
Cre
ditc
ards
: Am
ex, D
iner
s,
Mas
terC
ard
and
Vis
a
� Brazil and United States are experiencing diametrically
opposite situations in relation to the cards market.
� In the US, the financial crisis, high personal debt and the
high leverage of issuers via a vis credit limits has resulted in
a shrinking market;
� In Brazil, the strengthening domestic market has been
driving growth;
� In the US market commercial establishments receive in
D+2. In Brazil, in D+30.
� The US issuers are highly leveraged in terms of credit
and have a greater need for capital;
� Margins in the US market are significantly lower than in
Brazil.
Source: Market
64 3 6 68 70 9 67 65 76
20 0 5 2 00 6 20 07 2 00 8 2 0 09
C art ões (m il h õ e s )
�+4 ,0% �+6 ,0% �-4 ,6 %
�-14 ,9%
1 .8 28
2 .00 6
2 .1 66 2 .17 4
1.88 8
20 0 5 2 00 6 20 07 2 00 8 2 0 09
F atu ram ento (U S$ bi lh õe s )
�+9 ,7 %
�+8 ,0%
�+0 ,4%
�
-1 3 ,2%
Cre
ditc
ards
: Am
ex, D
isco
ver,
M
aste
rCar
dan
dV
isa
COMPARISON cards market
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Share in personal Brazilian consumption
Cards in US* : 29% 45% 47%
Brazil x US : 0.31 0.56 0.91
**
* Share of credit and debit cards in personal US consumption.
** Forecasted value for the year 2013, maintained constant up to 2019 on a conservative basis.
Source: Central Bank/ ABECS / Nilson Report
Constant values base=2010 (IPCA – IBGE)
BRAZILIAN MARKET POTENTIAL
Cards OthersCheckCash + Pre-Paid
202020102000
1,433 2,202 3,704Total (R$ billion):
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7,8% 8,4% 9,3% 10,2% 11,5% 12,7%
3,2%4,0%
4,4%4,8%
5,6%6,4%
1,7%2,0%
2,4%2,7%
2,8%2,9%
1S
04
1S
05
1S
06
1S
07
1S
08
1S
09
12.7%14.4%
16.1%17.7%
19.9%
22.0%**
Source: Central Bank and BIS
*
*
OPORTUNIDADE
Source: ABECS and IBGE**
CARDS INDUSTRY IN BRAZILcurrent situation
Branded
Credit
Debit
Private Label
Card Payments as % of Household Consumption (2008)
20%
22%
37%
40%
56%
57%
Brasil
Turquia
França
EUA
Coréia do Sul
Reino Unido
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Issuer Acquiring
EntityProcessorBrand
Card Entity
Card
Market
% of EBIT(2008)
• Annual fee and charges;
• Refinancing;
• Delayed payment charges;
• Interchange.
• POS rental;
• Commission;
• Anticipation of receivables.
• Fees
Source: Bank reports, Redecard, Merril Lynch, Goldman Sachs reports; BCG Analysis
CARD MARKETprofitability of the players
0%
100%
62,6%
33,4%
4%
0%
20%
40%
60%
80%
100%
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� Adjustment to the PCI (Payment Card Industry);
� AML (Anti-Money Laundering);
� KYC (Know Your Customer);
� International Guarantees;
� Implementation of Compliance Area.
Anti-Money Laundering
Payment Card Industry
Relationship
Meeting Requirements of Branded Card and Acquiring Entities:
RENNER CARDa new product
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� Survey shows that the majority of the customers are receptive to the substitution of the Private
Label for the Renner Credit Card;
� Market Opportunity: there are regions where 1/3 of the customers polled had no credit card;
� Visa & MasterCard: majority of the customers possess the two brands. Renner will offer a choice
to the customer;
� Customer views the Credit Card as important:
� Payment Locations – We will have various payment locations;
� Payment Date – Six payment dates for the customer to choose from;
� Credit Limit – We will offer from 80% to 110% of the customer’s
presumed income;
MARKET SURVEYRenner credit card
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� Increase in sales and increased share of the Renner Card;
� Adds value to the credit card which already exists;
� Diminishes the dormant card base;
� Diminishes the financial overheads of third party cards;
� Allow us to track the extra-Renner buying habits of our customers;
� Enhances the relationship with our customers;
� Helps consolidate the brand and furthermore
� Developes a new sales channel for other Financial Products.
Reasons for Renner’s decision to launch the Credit Card co-branded withVisa & Mastercard
RENNER CARDa new product
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� Amalgamates current (payment voucher system) with the new functions (billing) at Renner
� At Renner: the customer can choose freely and simultaneously;
� Other establishments: the same as the traditional cards;
� Card with CHIP: greater customer security;
� International use
� Option to choose MasterCard or Visa branded cards;
� Various credit lines:
� Payment voucher function limit (exclusive to Renner);
� Billing function limit (portion exclusive to Renner) and
� Emergency withdrawals limit through the ATM network.
� Six payment date options;
� Inclusion of dependents at principal card holder’s option
Principal Characteristics
RENNER CARDa new product
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Acquisition of Customers
� Market: more than R$ 100 per new customer (depending on the channel
used)
� Renner: optimizing the current base of already existing customers
�Processing
� Renner: has scale sufficient for achieving low costs
More signficant costs
RENNER CARDa new product
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Private label: “point of entry for new customers”
� Risk: minimized
First conversion:
� Internal Customers: May 2010
Other conversions:
� 1st Base: June 2010
� 12-month estimate: 1 MM cards
� 5-year estimate: 5 MM cards
Conversion Strategy
RENNER CARDa new product
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“Selected” Target Public: Evaluation of group utilization and exposure
PRODUCT STRATEGY
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“Selected” Target Public: Evaluation of group utilization and exposure
Opportunity: Excess of the limit will be an additional gain.
OFFERING STRATEGY
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1st year result of customer portfolio
“Payback” Renner “Payback” Market
5-YEAR VISION
Accumulated profitability of a portfolio (*)
(*) net present value)
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Any statement made during this presentation referring to the Company’s business outlook, projections and financial and operating goals represent beliefs and assumptions of the Management of Lojas Renner S.A and are 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. The audience should understand that general economic and industry 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.