We Always Want More ROADSHOW 2006 Europe. We Always Want More CONTENTS Overview of Lojas Americanas...

“We Always Want More”

ROADSHOW 2006 Europe


CONTENTS

• Overview of Lojas Americanas

• Time Line

• Five Main Fronts of Growth

• Lojas Americanas in figures

• Business strategy

•Priorities for Cash

•Operating Highlights 1Q06


OVERVIEW OF LOJAS AMERICANAS

US$ 1.5 billion (R$ 3.6 billion) Consolidated Gross Revenue in 2005

Market Cap of US$ 2.5 billion (R$ 6.0 billion)

EBITDA Margin 12.0% (2005)

Net Income 2005 US$ 73.4 million (R$ 176.1 million)

Brazilian leader in sales : CDs, DVDs, cookies, chocolates, candies, toys, lingerie

Prominent position in Brazil’s retail sector

Leading position in LATAM Internet (Americanas.com/Shoptime)

Personal loans and consumer credit offering

3 Distribution Centers

9.4 thousand employees

Awards:

Agência Estado Destaque Empresas 2005 (The Best performance for the shareholders)

Folha de São Paulo “Top of Mind 2005”

Revista Exame - “Melhores e Maiores”

Forbes Brasil - “Platinum List 200”

iBest “Best Ecommerce Site”


The number of stores doubled in the last 5

years!

Organic Growth

Record: 37 new stores

Shoptime Acquisition

Americanas Taií Creation

TIME LINE

1929 ’82 ’98 ’99’40

77 years old

’05

Lojas AmericanasFoundation

Lojas Americanas goes public

(IPO)

Garantia’s Bank

partners

Focus in the core business

(IT/Logistics)

Lojas AmericanasTurnaround

Americanas.comCreation

2001

AmericanasExpressProject

’03


Multi-Channel Retailing

FIVE MAIN FRONTS OF GROWTH

DC SPDC SP103 stores

53,000 m²

DC RJDC RJ69 stores69 stores35,500 m²

DC PEDC PE30 stores30 stores22,900 m²



Bricks-and-mortar Business

202 stores

(may/06)

180 traditional - avg.1,500 m2

22 express - avg. 500

m2

Average Ticket: R$ 24.1

Customer Profile:

up to 1.8MM customers/day in events

77% women - Middle

class

North2

MidWest

19

South

27

Southeast

125

Northeast

29


DC PEDC PE30 stores30 stores22,900 m²

DC RJDC RJ69 stores69 stores35,500 m²DC SPDC SP

103 stores103 stores53,000 m²


E-Commerce and TV Channel

Business

2 websites, telephone sales,

Catalogue and TV channel

(14MM antennas)

Brazil - 1st. in sales on line -

6 MM Customers

Average Ticket R$ 300

Complementary Assortment

Exclusive and differenciated

products


6 MILLIONCUSTOMERS

+ 200 countriesaround the world


DC SPDC SP


Financial Business

Joint-venture w/Banco Itaú

Personal Loans, Consumer Credit, Private Label and Co-branded Cards


+ 16 own stores


North2

MidWest

19

South

27

Southeast

125

Northeast

29


LOJAS AMERICANAS IN FIGURES

1,5101,693

1,7651,918

2,325

2,949

3,640

1000

1500

2000

2500

3000

3500

4000

1999 2000 2001 2002 2003 2004 2005

Gross Revenue (R$ million)

CAGR: 15.8%


8.0

90.1

142.8

217.6

274.7

330.9

0

50

100

150

200

250

300

350

2000 2001 2002 2003 2004 2005

Consolidated EBITDA (R$ million)

CAGR: 110.5%


0.6%NR

12.0%NR


25.9

22.5

20.8

19.0 18.918.4

10

15

20

25

2000 2001 2002 2003 2004 2005

SG&A Expenses (% Net Revenue)


-7.5 pp


25.2

28.1

29.5 30.230.9

30.3

20

25

30

2000 2001 2002 2003 2004 2005

Gross Margin (% Net Revenue)



170

229

266

309

344

100

150

200

250

300

350

2001 2002 2003 2004 2005

Gross Revenue per Associate (R$ thousand)

CAGR: 15.1%



LAME3 X LAME4 X IBOVESPA

0

500

1000

1500

2000

2500

jan-01 jan-02 jan-03 jan-04 jan-05

LAME3 LAME4 IBOVESPA

LAME3

LAME4

IBOV

Return on Equity

2001 2002 2003 2004 2005

47.2%

25.9%

59.6%Earnings per Share (R$)

54.9%

33.9%

2001 2002 2003 2004 2005

1.54

0.83

2.64

1.78

0.96


LAME3 2,422%LAME4 1,913%IBOV 119%

Growth 2001-2005


41.4%

2.4%

56.2%

7.1%

29.6%

2.7%60.6%

Shareholders Capital StructureShareholders Capital StructurePosition at March, 2006Position at March, 2006

Common SharesCommon Shares

Preferred SharesPreferred Shares53.3%

2.6%18.4%

25.7%

ControllingShareholders

CBV

Treasury

Free Float

Total SharesTotal SharesForeignInvestors

4.4%

Foreign Investors

37.0%

Foreign Investors

24.7%



BUSINESS STRATEGY

•Population: over 180 million•Number of mobile phones: 90 million•Credit cards: over 50 million•Internet users: over 20 million

Over 5,500Brazilian cities

Brazil in figuresBrazil in figures

Opportunities


5,500

Less 100,000inhabitants

Over 100,000inhabitants

Cities withLASA stores

70210

5,220

Less 100,000inhabitants

Over 100,000inhabitants

Cities withLASA stores

options via Internet, telesales, catalogsoptions via Internet, telesales, catalogs and TV and TV

to a potential public of 43 million Brazilians. to a potential public of 43 million Brazilians. Opportunitie

s

BUSINESS STRATEGY

Potential Potential

Growth Growth


ExpansionPillars

Number of inhabitantsNumber of inhabitants

Integration of Integration of locations and logisticslocations and logistics

Presence of other Presence of other playersplayers

Consumer ProfileConsumer Profile

Bricks and Mortar BusinessBricks and Mortar Business

BUSINESS STRATEGY

37

16

47

35

2001 2002 2003 2004 2005 2006

?

22

10

Stores openedStores programmed

Stores under negotiation


16

2

5

9

BUSINESS STRATEGY

Bricks and Mortar BusinessBricks and Mortar Business

Niterói - RJ - Estrada de Itaipú Express

Rio de Janeiro - RJ 2 Express

São Paulo – SP 1 Traditional + 4 Express

Ribeirão Preto - SP

Suzano - SP

Taubaté - SP

São José do Rio Preto – SP 1 Traditional + 1 Express

Divinópolis - MG

Ipatinga - MG

Barreiro - MG

Northeast Region

Southeast Region

Middle-West Region

Recife-PE 2 Express

Natal - RN

Vitória da Conquista - BA

São Luis - MA 2 Traditional

Fortaleza - CE

Maracanaú - CE

Feira de Santana – BA

Criciúma - SC

Curitiba - PR 2 Traditional

Londrina - PR

Tubarão - SC

Dourados - MS

Cuiabá - MT

10 stores

opened

+22 stores

schedule

d

South Region

ExpansionExpansion

20062006


Latin America’s #1 E-retailerLatin America’s #1 E-retailer - - Multi ChannelMulti Channel

200.000 SKUs are available for 6200.000 SKUs are available for 6 million million customerscustomers

TV channel that reaches 14 million antennas and growingTV channel that reaches 14 million antennas and growing

Our E-commerce business represents 24% of LASA consolidated sales Our E-commerce business represents 24% of LASA consolidated sales

(2005)(2005) E-commerce in Brazil

over 90% of Brazilian

consumers have never

purchased on the Internet

BUSINESS STRATEGY


25.280.8

166.4

267.6

434.0

864.8

0

100

200

300

400

500

600

700

800

900

1000

2000 2001 2002 2003 2004 2005

E-commerce Gross Revenue (R$ million)

* Shoptime´s acquisition was in September, 2005

CAGR: 102.8%

*

BUSINESS STRATEGY


Co-Branded International Cards (Visa/ MC) August,2006

Co-Branded Cards (Visa/ MC) August,2006

Personal Loan Card May,2006

Private Label Card May,2006

Joint Venture LASA - BANCO ITAU

JV will enable credit access for over 40

million brazilians without bank accounts

Personal Loans, Consumer Credit, Private

Label and Co-branded Cards

Benefits

Selling Expenses reduction (fees)

Improvement in consolidated Working

Capital

LASA´s Capital Gain: R$ 200 million (50% of

JV)

BUSINESS STRATEGY

Forms of Payment (1Q06)

56%

Cash

11% Other

42%

Credit Card

2% Checks

Lojas Americanas Americanas.com

89%

Credit Card


PRIORITIES OF CASH

56.3 57.0

14.6

87.2 86.5 89.2

2.311.1

28.5

0.4

18.1

35.3

2001 2002 2003 2004 2005 2006

Total Total

2001-2006:2001-2006:

R$ 486.5 MMR$ 486.5 MM

46% EBITDA46% EBITDA

Expansion Program and InvestmentsExpansion Program and InvestmentsTechnology and OperationsTechnology and Operations Store openings and remodelingStore openings and remodeling People - capacitating the associatesPeople - capacitating the associates

Share Buy-Back and Dividends ProgramShare Buy-Back and Dividends Program

EVA EVA ® ® OrientedOriented

Dividends Payment and Share Buy-back Program (R$ million)

Dividends Payment

Share Buy-back

Store Opening Evolution

Stores openedStores programmed

Stores under negotiation

37

16

47

35

2001 2002 2003 2004 2005 2006

?

22

10

* 2005 - Shoptime Acquisition R$ 117 million* 2005 - Shoptime Acquisition R$ 117 million

CAPEX budget for 2006: R$ 158.1 MMCAPEX budget for 2006: R$ 158.1 MM


Our headquarters, stores and distribution centers are Our headquarters, stores and distribution centers are connected in real-time, allowing total control over connected in real-time, allowing total control over operations. operations.

10.4 Million tickets / month10.4 Million tickets / month3.2 thousand points of sales3.2 thousand points of sales3 million credit cards transactions / month3 million credit cards transactions / month

TECHNOLOGYTECHNOLOGY

PEOPLEPEOPLE Employees’ training programsEmployees’ training programs

90% of all store managers are formed by the company90% of all store managers are formed by the company

OPERATIONSOPERATIONSBy using the CDs, we cut down on inventories and losses By using the CDs, we cut down on inventories and losses and optimized distribution by daily deliveries of the and optimized distribution by daily deliveries of the replacement stock requested, guaranteeing products at replacement stock requested, guaranteeing products at the right time, in appropriate quantities.the right time, in appropriate quantities.

Technological innovations to increase the efficiency of the business processes and keep pace with the Company’s expansion.

BUSINESS STRATEGY


OPERATING HIGHLIGHTS – 1Q06OPERATING HIGHLIGHTS – 1Q06

Better Operating Efficiency (vs. 1Q05 - difference in Easter sales Better Operating Efficiency (vs. 1Q05 - difference in Easter sales

period)period)

Consolidated EBITDA (R$75.1 million) grew by 12.6%Consolidated EBITDA (R$75.1 million) grew by 12.6%

Operating Income (R$55.5 million) 7.4% increaseOperating Income (R$55.5 million) 7.4% increase

0.2 p.p. reduction in G&A expenses, as % of NR0.2 p.p. reduction in G&A expenses, as % of NR

SSS growth Jan-April/2006 vs. Jan-April/2005 + 12.1%SSS growth Jan-April/2006 vs. Jan-April/2005 + 12.1%

Gross revenue per associate grew by 7.9%Gross revenue per associate grew by 7.9%

110% increase in consolidated gross revenue of A.com and 110% increase in consolidated gross revenue of A.com and

ShoptimeShoptime


This presentation contains forward-looking statements. Such statements are not statements of historical fact, and reflect the beliefs and expectations of the Lojas Americanas’management. The words "anticipates", “wishes”, “expects”, "estimates", “intends", "forecasts", "plans", "predicts", "projects", "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include, but are not limited to, the impact of competitive products and pricing, market acceptance of products, regulatory environment, currency fluctuations, supply difficulties, changes in product sales mix, and other risks. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments.

MSCI Logo:The use of Morgan Stanley Capital International Inc.´s ("MSCI") trademarks and index names does not constitute a sponsorship, endorsement or promotion by MSCI, any of its affiliates, any of its information providers or any other third party involved in, or related to, compiling, computing or creating any MSCI index. The MSCI indexes are trademarks of MSCI or its affliates and have been lincensed for use for certain purposes by Lojas Americanas S.A.

“WE ALWAYS WANT MORE”

“We will continue to pursue our learning path and to overcome obstacles, and this makes us enthusiastic since it will enable us to achieve new levels of results, always seeking to better meet our customer’s needs”.

We Always Want More ROADSHOW 2006 Europe. We Always Want More CONTENTS Overview of Lojas Americanas...

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