1q07 results conference call - b2w · pdf file1q07 results conference call friday, ... the...
Post on 06-Feb-2018
217 Views
Preview:
TRANSCRIPT
1Q07 Results Conference CallFriday, May 11, 2007
11:00 a.m. US EDT / 12:00 p.m. (Brazil) Telephone: +1 (973) 935-8893 l Code: 8783964
1
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 merger between Submarino and Americanas.com was approved at the Extraordinary Shareholders Meeting held on December 13, 2006. However, for comparison purposes, the comments on performance hereby compare 1Q07 results with pro-forma unaudited income statements for the first quarter of 2006 (1Q06) of Americanas.com, Shoptime and Submarino. Such pro-forma information does not replace audited Financial Statements filed at the Brazilian Stock and Exchange Commission (CVM).
Forward-looking statements
2
1Q07 Overview
Sales growth associated with high operational standards;
We have mapped financial and operating synergies with Net Present Value 10% higher than the R$800 million initially estimated;
Concentration Act is still under analysis by Brazilian antitrust agencies (CADE, SDE and SEAE);
Within the next few months, B2W’s shares will be listed for trading at Bovespa under the BTOW3 ticker;
Ingresso.com, Submarino Viagens and Submarino Finance reached important operational marks, with very motivating results.
B2W begins 2007 with solid results, encouraged by integration and synergies opportunities
3
1Q07 Operating Highlights
• Solid operating growth
Gross Revenue increased by 57%
Gross Margin moved up 30 bps, and reached 30.7%
Growth of 160 bps in EBITDA Margin, reaching 12.9%.
Comments based on 1Q07 results and 1Q06 pro-forma statements.
158,6
101,6
30.7%
30.4%
1Q06 1Q07
Gross Profit (R$ MM) Gross margin (%)
740.4
471.1
1Q06 1Q07
Gross Revenue (R$ MM)
57%
30 bps
160 bps
37.8
66.6
12.9%
11.3%
1Q06 1Q07
EBITDA (R$ MM) EBITDA Margin (%)
160 bps
4
Gross Revenue
In the 1Q07, Gross revenue was only 5% down on the 4Q06, which is historically the Company’s highest sales period
These results demonstrate our continuous search for growth, allied to constant operating improvement
522.0
780.0
4Q05 4Q06
49%
'
740.4
471.1
1Q06 1Q07
57%
1Q07 Gross Revenue 4Q06 Gross Revenue
5
Operating ExpensesOur permanent cost-cutting culture allows us to reach new result baselines
Selling Expenses G&A Expenses
79.1
53.8
15.3%16.1%
1Q06 1Q07
R$MM % NR
13.09.9
2.5%
3.0%
1Q06 1Q07
R$MM % NR
6
EBITDA (R$MM) and EBITDA Margin (%)
• EBITDA and EBITDA Margin aligned with:
Initial capture of merger synergies;
Constant search for profitability growth alternatives;
Rapid response and challenge overcoming abilities.
EBITDA and EBITDA Margin
66.6
37.8
12.9%
11.3%
1Q06 1Q07
EBITDA (R$MM) EBITDA Margin
76%
+160 bps.
7
Indebtedness and Financial Results
B2W closed the 1Q07 with a R$138.6 million net cash, versus R$704.1 million in the 4Q06.
Net cash decrease reflects the R$441.0 million capital reduction occurred on January 30, 2007, as well as the business’ natural seasonality.
Indebtedness Net Financial Result
22.0
33.76.6% 6.5%
1Q06 1Q07
Net Financial Result R$MM % NR
4Q06 1Q07
Total Cash and Cash Equivalents 1,014 400
310 262(-) Gross Debt
Net Cash 704 139
8
Synergies
Fixed expenses and cost reduction
Variousfinancial and
operatinglevers
identified
Scale gainswith
technology and freight costs
Rationalizationof our
distributioncenters
9
We have reached the milestone of almost 100 thousand cards issued
The credit card holders are enrolled with a Reward Program, and are entitled to participate in special promotions on the website
We have reached more than 1,000 movie theaters in Brazil
Submarino Viagens reached the EBITDA breakeven point in February 2007
1Q07 booking volume was 100% up on the 1Q06
Subsidiaries
10
Continuous synergies mapping and capturing process;
Maximization of our businesses (Ingresso.com, Submarino Viagens and Submarino Finance);
Optimization of logistics operations;
Staff training and technological structure improvement to support the challenges in the Company’s growth path;
Maintenance of our international expansion plan, without losing focus on local opportunities and delivering synergies.
Next quarters perspectives and priorities
11
THANK YOU
top related