consolidated gross revenue of r$ 4.7 billion in … · has a portfolio with the brands...

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CONSOLIDATED GROSS REVENUE OF R$ 4.7 BILLION IN 1Q15 CONSOLIDATED EBITDA OF R$ 454 MILLION, A GROWTH OF 18.1%

Rio de Janeiro, May 7th, 2015 – Lojas Americanas S.A. [BOVESPA: LAME3 (common) and LAME4 (preferred)], one of the leading retail chains in Brazil with 960 stores and present in all Brazilian States, announces today its results for the 1st quarter of 2015 (1Q15). The accounting information that serves as the basis for the comments that follow are presented in accordance with the international financial reporting standards (IFRS), to the rules issued by the Brazilian Securities Exchange Commission (CVM) and in Reais (R$). The comparisons refer to the 1st quarter of 2014 (1Q14).

OPERATIONAL AND FINANCIAL HIGHLIGHTS

Executive Summary 1Q15 – Comparison to 1Q14

Consolidated Gross Revenue (R$ MM)

Consolidated Gross Profit (R$ MM) and Gross Margin(%NR)

Consolidated Adjusted EBITDA (R$ MM) and Adjusted EBITDA Margin (%NR)

Evolution in Number of Stores

1Q15 1Q14 Var. (%) Financial Highlights (R$ MM) 1Q15 1Q14 Var. (%)

2,098.8 1,769.1 18.6% Net Revenue 4,095.2 3,391.5 20.7%

670.8 575.0 16.7% Gross Profit 1,143.3 993.9 15.0%

32.0% 32.5% -0.5 p.p. Gross Margin (%NR) 27.9% 29.3% -1.4 p.p.

325.0 273.9 18.7% Adjusted EBITDA 453.8 384.1 18.1%

15.5% 15.5% - Adjusted EBITDA Margin (%NR) 11.1% 11.3% -0.2 p.p.

22.2 25.9 -14.3% Net Income 22.2 25.9 -14.3%

1.1% 1.5% -0.4 p.p. Net Margin (%NR) 0.5% 0.8% -0.3 p.p.

ConsolidatedParent Company

Easter Mismatch

In 2015 the Easter Holiday was on April 5th, while in 2014 it fell on in April 20th. Thus, in 2014 the revenues related to this important event had an bigger impact on the second quarter

Gross Revenue

In 1Q15, the parent company gross revenue totaled R$ 2.4 billion, a variation of 17.3% over

1Q14. On a consolidated basis, gross revenue reached R$ 4.7 billion, a growth of 20.8% in

relation to 1Q14;

Net Revenue

In 1Q15, the parent company net revenue reached R$ 2.1 billion, a variation of 18.6% in relation to 1Q14. In the consolidated view, the growth was 20.7% in this period, reaching R$ 4.1 billion;

“Same Stores” Net Revenue

Growth in “same stores” net revenue of 9% in the first four months of the year;

Gross Margin

In the parent company, the gross margin was 32.0% of net revenue in 1Q15. The

consolidated gross margin was 27.9% of net revenue;

Adjusted EBITDA

In the parent company, Adjusted EBITDA totaled R$ 325.0 million, a growth of 18.7% over

1Q14 Adjusted EBITDA margin was 15.5% in relation to net revenue, flat compared to 1Q14.

The consolidated Adjusted EBITDA reached R$ 453.8 million, a growth of 18.1% with a

consolidated Adjusted EBITDA margin of 11.1% in relation to net revenue in 1Q15;

Net Income

Net income totaled to R$ 22.2 million in 1Q15;

Expansion

“85 anos em 5 – Somos mais Brasil”: For the next 5 years (2015 – 2019), we are

planning to open 800 new stores in Brazil.

In 2015, through today, we opened 8 stores and have 95 contracted stores or in advanced

stage of negotiation.

+AQUI!

The Promoter has already begun offering the new Lojas Americanas card.

B2W DIGITAL

In 1Q15 consolidated gross revenue reached R$ 2.5 billion, a growth of 25.1% over 1Q14;

Charts – “1Q” means first quarter of each year.

The historic data are in compliance with the corporate norms in effect for each period.

Adjusted EBITDA - Operating profit before interest, taxes, depreciation and amortization, other operating income/expenses, equity accounting,

minority participation, statutory participation and discontinued operations.

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MULTICHANNEL RETAIL STRUCTURE Lojas Americanas operates through a multichannel service structure. Besides the physical stores, the Company counts with the B2W Digital platform to reach customers via the Internet, telephone, catalogues, TV and kiosks, which complements the offer of products in the physical stores. B2W DIGITAL is the leading e-commerce company in Latin America. B2W operates through a digital platform, that has a portfolio with the brands Americanas.com, Submarino, Shoptime, Sou Barato, Ingresso.com, Submarino Finance, Digital Finance and B2W Viagens, that offer more than 40 categories of products and services. The participation of Lojas Americanas on the B2W Digital was 55.55% on March 31

st 2015.

The following organizational chart illustrates the integrated approach of Lojas Americanas:

Varejo Físico

Varejo Multicanal

Internet, TV, Televendas,Catálogos e Quiosques

Participação: 55,53%*

Consolidação resultados:100,00%

Participation: 55.55% Results Consolidation: 100%

*Position in 03/31/2015

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COMMENTS ON OPERATING PERFORMANCE

EASTER MISMATCH

In 2015 the Easter Holiday was on April 5th, while in 2014 it happened on April 20

th. Therefore, in 2014 the revenues

related to this important event had a bigger impact on the second quarter; NET REVENUE

In 1Q15, the parent company net revenue reached R$ 2.1 billion, a variation of 18.6% in relation to the R$ 1.8 billion registered in 1Q14. The consolidated net revenue of Lojas Americanas and its subsidiaries reached R$ 4.1 billion in 1Q15, an increase of 20.7% when compared to 1Q14.

To eliminate the Easter Mismatch, just as in the last few years, we chose to disclose net revenue growth using the concept of “Same Stores Sales” (excluding new stores with less than an year of inauguration) during the period of January to April 2015. In this period, the growth was 9% in relation to the first four months of 2014.

GROSS PROFIT AND GROSS MARGIN

In 1Q15, gross margin in the company was 32.0% of net revenue (NR), a variation of -0.5 p.p. when compared to the 1Q14 margin of 32.5%. In the consolidated view, gross margin in 1Q15 was 27.9% of the NR, a variation of -1.4 p.p of the level obtained in 1Q14.

EFFECTS RELATED TO THE CONSOLIDATION OF THE SUBSIDIARIES, CLICK-RODO AND DIRECT ON GROSS PROFIT AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES IN THE CONSOLIDATED RESULT OF LOJAS AMERICANAS. The subsidiaries Click-Rodo and Direct provide merchandise distribution services to B2W Digital. This services, mandatorily, generating an elimination effect in consolidated of B2W Digital gross revenue and selling, general and administrative expenses (distribution expenses) and consequently in the consolidated of Lojas Americanas, according to the present accounting rules. The consolidated gross profit of B2W Digital and consequently the consolidated gross profit of Lojas Americanas is reduced in an amount equal to the positive effect observed in the selling, general and administrative expenses, but with no effect on EBITDA and EBITDA Margin. As the subsidiaries, Click-Rodo and Direct, continue to provide more services to the Company, this effect will become more relevant. The gross profit presented of Lojas Americanas in 1Q15, without these consolidation effects, would be R$ 1.169,9 million or 28.6% of net revenue. The selling, general and administrative expenses presented in 1Q15, without these consolidation effects, would be R$ 716.1 million or 17.5% of net revenue. Adjusted EBITDA remains unchanged in the amount of R$ 453.8 million or 11.1% of net revenue.

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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

In 1Q15, selling, general and administrative expenses in the parent company summed up to R$ 345.8 million, or 16.5% of NR, a variation of -0.5 p.p. in relation to 1Q14. The consolidated selling, general and administrative expenses in 1Q15 totaled R$ 689.5 million, or 16.8% of NR, a variation of -1.2 p.p. in relation to the same period last year.

ADJUSTED EBITDA

In 1Q15, the parent company Adjusted EBITDA reached R$ 325.0 million, an expansion of 18.7% when compared to 1Q14. The Adjusted EBITDA margin in the period was 15.5%, which was flat in relation to 1Q14.

The consolidated Adjusted EBITDA summed up to R$ 453.8 million in 1Q15, a growth of 18.1% in relation to 1Q14. The consolidated Adjusted EBITDA margin in 1Q15 was 11.1% of NR, a variation of -0.2 p.p. above of the level in 1Q14.

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EBITDA (CVM 527/12)

On October 4th, 2012, Brazilian Securities Exchange Commission (CVM) enacted Instruction 527/12, which

disposes about the voluntary disclosure of not of accounting information, as EBITDA. The Instruction aims to standardize the disclosure, in order to improve the understanding of this information and making it comparable among the publicly listed companies. To keep the consistency and the comparability between previous periods, we present the EBITDA reconciliation in the following table:

EBITDA Reconciliation - R$ MM 1Q15 1Q14 ∆ % 1Q15 1Q14 ∆ %

Gross Profit 670.8 575.0 16.7% 1,143.3 993.9 15.0%

(+) Sales Expenses (323.9) (280.7) 15.4% (631.3) (569.4) 10.9%

(+) General and Administrative Expenses (21.9) (20.4) 7.4% (58.2) (40.4) 44.1%

(=) Adjusted EBITDA 325.0 273.9 18.7% 453.8 384.1 18.1%

EBITDA Margin (%NR) 15.5% 15.5% - 11.1% 11.3% -0.2 p.p.

(+) Other Operat. Income (Expenses)* 1.1 0.8 37.5% (4.6) (7.4) -37.8%

(+) Equity Accounting (19.7) (29.5) -33.2% - - -

(=) EBITDA (CVM 527/12) 306.4 245.2 25.0% 449.2 376.7 19.2%

EBITDA Margin (%NR) CVM 527/12 14.6% 13.9% +0.7 p.p. 11.0% 11.1% -0.1 p.p.

* In the old accounting rules, considered as "non-operating income".

Parent Company Consolidated

Adjusted EBITDA - Operating profit before interest, taxes, depreciation and amortization, other operating income/expenses, equity accounting, minority participation, statutory participation and discontinued operations.

NET FINANCIAL RESULT The parent company net financial expenses totaled R$ 201.4 million in 1Q15, a variation of 48.4% in relation to the R$ 135.7 million registered in 1Q14. The consolidated financial expenses were R$340.9 million in the same period. This variation in the financial result is mainly related to the increase in the interbank deposit certificate – CDI. In addition, the subscription to 18.4 million shares (R$ 1.0 billion) in B2W’s private capital increase influenced the financial result of the parent company starting in June 2014. Thus, in the following table, we present a view of the financial result with the aforementioned effects.

Breakdown of the Net Financial Result - R$ MM 1Q15 1Q14 ∆ %

Parent Company Net Financial Result (201.4) (135.7) 48.4%

Consolidated Net Financial Result (340.9) (290.0) 17.6%

NO EXPOSURE TO FOREIGN EXCHANGE VARIATIONS The Company continues to reaffirm its commitment to a conservative cash investment policy, manifested by the use of hedge instruments in foreign currencies, and derivatives (swaps).The financial liability and the total cash position of the Company are FULLY PROTECTED against any foreign exchange fluctuations through these financial instruments, which offset the foreign exchange risk transforming the cost of debt for currency and local interest rate (as a percentage of CDI *). In the same vein, it is worth remembering that the Company's cash is invested in the largest financial institutions in Brazil. *CDI - Interbank Deposit Certificate: average rate of funding through the interbank market.

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NET RESULT

Net income in 1Q15 summed up to R$ 22.2 million. The variation in net income is mainly related to the increase in the net financial expense in the period.

The following table shows the main variations from Adjusted EBITDA to net result:

Reconciliation of the Net Result - R$ MM 1Q15 1Q14 ∆ % 1Q15 1Q14 ∆ %

Adjusted EBITDA 325.0 273.9 18.7% 453.8 384.1 18.1%

(+) Depreciation / Amortization (62.8) (57.1) 10.0% (110.1) (84.0) 31.1%

(+) Net Financial Result (201.4) (135.7) 48.4% (340.9) (290.0) 17.6%

(+) Equity Accounting (19.7) (29.5) -33.2% - - -

(+) Other Operat. Income (Expenses)* 1.1 0.8 37.5% (4.6) (7.4) -37.8%

(+) Minority Interest - - - 22.4 21.8 2.8%

(+) Income tax and social contribution (20.0) (26.5) -24.5% 1.6 1.4 14.3%

(=) Net Result 22.2 25.9 -14.3% 22.2 25.9 -14.3%

* In the old accounting rules, considered as "non-operating income".


Adjusted EBITDA (LAJIDA) – Operacional profit before interests, taxes, depreciation and amortization, other operative income (expenses), equity accounting, minority interest, statutary participation and discontinued operations. INDEBTEDNESS

Lojas Americanas uses its cash flow giving priority to investments that generate the best returns for shareholders. Thus, we have listed below the main actions carried out in the period between 04.01.2014 and 03.31.2015:

Investments made by Lojas Americanas and B2W in property and intangible assets (websites and systems

development) of R$ 1,448.7 million;

Payment of interest on equity and gross dividends in the amount of R$ 115.5 million;

Lojas Americanas’ consolidated short and long-term loans and debentures at 03.31.2015 totaled R$ 5,817.7 million. If we deduct the cash position of R$ 2,692.9 million (cash + money market investments + accounts receivable from credit and debit cards) from total loans, we will reach a net debt position of R$ 3,124.8 million.

R$ million

Indebtedness 03/31/2015 03/31/2014 03/31/2015 03/31/2014

Short Term Debt 402.8 155.1 980.4 485.3

Short Term Debentures 425.4 102.0 425.4 251.6

Siot Term Indebtedness 828.2 257.1 1,405.8 736.9

Long Term Debt 1,972.3 1,627.7 3,996.8 4,613.1

Long Term Debentures 3,017.2 2,332.3 3,017.2 2,624.6

Long Term Indebtedness 4,989.5 3,960.0 7,014.0 7,237.7

Total Debt (1) 5,817.7 4,217.1 8,419.8 7,974.6

Casi and banks 754.4 583.4 928.0 703.6

Money market investments 1,300.2 994.6 2,864.8 2,823.1

638.3 626.3 1,685.2 1,489.5

Total Cash (2) 2,692.9 2,204.3 5,478.0 5,016.2

Net Cash (Debt) (2) - (1) (3,124.8) (2,012.8) (2,941.8) (2,958.4)

Net Debt / Adjusted EBITDA LTM 1.9 1.4 1.3 1.6

Average Maturity of Debt (in days) 1,065 1,149 1,035 1,096


Accounts receivable

Adjusted EBITDA (LAJIDA) – Operacional profit before interests, taxes, depreciation and amortization, other operative income (expenses), equity accounting, minority interest, statutary participation and discontinued operations.

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At 03.31.2015, the Company’s net debt was 1.3x the 12-month accumulated EBITDA. The average maturity of the debt was 1,035 days (34 months). With regard to the Parent Company, at 03.31.2015 net debt was 1.9x the 12-month accumulated EBITDA. The average maturity of the debt was 1,065 days (35 months). To match the uncertainties and the volatility of the financial market, Lojas Americanas has the orientation of preserving the cash and prolonging the debt profile. Throughout the last few years, many measures were taken related to this objective, which let us consolidate our plan of long-term growth for the Company. Accounts receivable are composed of receivables from credit cards, net of the discounted value which have immediate liquidity and can be considered as cash. The breakdown of accounts receivable from the consolidated point of view of Lojas Americanas is shown in the following table:

R$ million

Accounts Receivable Conciliation - R$ MM 03/31/2015 03/31/2014 03/31/2015 03/31/2014

Gross credit-cards receivable 1,080.2 991.5 3,634.4 3,394.1

Electronic debits and checks receivables 19.2 25.4 19.2 25.4

Receivable discounts (461.1) (390.6) (1,968.4) (1,930.0)

638.3 626.3 1,685.2 1,489.5

Present-value adjustment (8.7) (13.6) (12.7) (17.0)

Allowance for doubtful accounts (2.4) (2.8) (30.4) (37.1)

Other accounts receivable 7.8 7.5 216.7 207.1

Consolidated Net Accounts Receivable 635.0 617.4 1,858.8 1,642.5

Consolidated

Accounts Receivable from credit / debit cards

Parent Company

Due to the adoption of the new CPCs/IFRS, in particular the CPC 38 and its corresponding IAS 39, the Company began to write off (derecognize) receivables from credit card administrators the moment they were effectively discounted (as of the explanatory notes of the financial statements). However, to better demonstrate the volume of receivables discounted on the base-dates analyzed, in the chart above the Company presents the accounts receivable adjusted by the discounts made until the base-dates under analysis. SALES BY MEANS OF PAYMENT The breakdown of the sales, by means of payment in 1Q15 and 1Q14 can be seen in the following table:

Means of Payment 1Q15 1Q14 Var. 1Q15 1Q14 Var.

Cash 58% 60% -2 p.p. 51% 48% +3 p.p.

Credit Cards 42% 40% +2 p.p. 49% 52% -3 p.p.


As was mentioned before, there was a mismatch related to the date of the Easter holiday (1Q15 compared to 1Q14). This effect also impacted the mix of payments between cash and credit cards during the analyzed periods.

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PARENT COMPANY NET WORKING CAPITAL At 03.31.2015 net working capital was zero days, which represented an improvement of five days when compared to 03.31.2014

(Net Working Capital = Days of Inventory + Days of Accounts Receivable – Days of Suppliers)

The evolution in the net working capital of Lojas Americanas in the period shows the constant search for equilibrium between the variables of working capital: stocks, suppliers and accounts receivable. Stocks: The improvements that have been implemented in the logistic process in the Company aim to improve, even more, the efficiency of the distribution of stocks between the distribution centers and stores of all the regions of the country and support our expansion program Suppliers: The evolution of this line in the last few years shows the constant search for improvements in our operational process and by continuously improving the relationships with our suppliers. Accounts Receivable: Improvements in the control over the offer of credit and the deadlines for payments in the stores, contributed to a reduction in accounts receivable during the quarter. CUSTOMER SERVICE’S LEVEL

Lojas Americanas is proud to be elected the company with higher prestige of retail, according to a ranking by the Época Negócios magazine.

Lojas Americanas was the best ranked retail company in the ranking of the most valuable

trademarks of Brazil on the Isto É Dinheiro (12th general)

This award reinforces the company’s commitment to its customers and its, which mission is “make dreams come true and to meet customers needs, saving time and money, and overcoming their expectations”. We thank our customers and associates who are an important part in this achievement.

Lojas Americanas S.A. has the RA 1000 Seal since October 2012. It was created by the claims registrations website, Reclame Aqui, in order to reward companies that have excellent levels of customer service. The Company received the seal for having an excellent rate of Response, Solution and Evaluation in providing solutions to complaints. The Company is well-placed in the 20 best Reclame Aqui Companies rankings (most reputed complaints website in Brazil). Among thousands of recorded companies, Lojas Americanas presents 95.6% of the BEST SOLUTION INDEX, 86.3% of the BEST WILL DO BUSINESS AGAIN INDEX and grade 8.26 on Service. The seals and rankings highlighted above reinforce Lojas Americanas’s objective to bring convenience to its customers and to exceed their expectations.

* As of March 31st, 2014

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INVESTMENT AND EXPANSION

INVESTMENTS In 1Q15, Lojas Americanas Parent Company invested a total of R$ 131.4 million, with emphasis on expansion, improvements in the store network and technological upgrades.

Investments R$ million %

Openings / Improvements 97.5 74%0.0 0%

Technology 29.1 22%0.0 0%

Operations and Others 4.7 4%0 0%

Total 131.4 100%

Expansion of the Chain of Stores So far in 2015, we have opened 8 stores, and have more than 95 stores with contract signed or in an advanced

stage of negotiation, which shows the Company’s commitment in keeping the execution of our expansion program

“85 anos em 5 – SOMOS MAIS BRASIL”.

Currently the company counts with 960 stores in 353 cities in 25 states plus the Federal District. Our stores are

distributed in the following way, 57.8% on the Southeast region, 18.2% in the South/Center-West and 24.0% in the

North/Northeast. Besides the physical stores, the Company has four distribution centers located in Rio de

Janeiro/RJ, São Paulo/SP, Recife/PE and Uberlândia/MG.

The following table shows the profile of the stores opened in 1Q15:

Region FormatNumber of

Stores

Sales Area

thousand m²

Average

thousand m²

952 875.8 0.9

Traditional 3 2.7 0.9

Express - - -


Express - - -

Traditional - - -

Express - - -

Traditional - - -

Express - - -


Express - - -


Express - - -

Refurbishment/Deactivation - - -

957 880.6 0.9

As of 12/31/2014

As of 03/31/2015

Midwest

Southeast

Northeast

South

North

TOTAL

For the next five years (2015 – 2019), we plan the opening of two new distribution centers and 800 new stores in Brazil. This program is based on our economic viability studies which that consider many macroeconomic data points, such as: population growth, per capita income and evolution of the local economy.

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With our confidence in the country’s development, the continuity of the company’s expansion plan shall benefit all the regions in the country. Similar to what has happened in the past, the growth in the years to come must follow the 70% traditional stores (with selling area between 800 m² and 1,200 m²) and 30% Express (with selling area between 300 m² and 500 m²) proportion. It is important to mention that in March 2014 credit line with BNDES of approximately R$1.2 billion has been approved, with the objective of expansion, modernization and standardization of our stores, besides the technological upgrade for the period between 2013 and 2015. Besides the project which is already approved, the actual free cash flow situation, together with the length its debt profile, makes us confident that we are able to invest the amount needed. The value must reach R$ 4.0 billion in the 2015-2019 period. We are optimistic about following our growth path and keeping the commitment with the profitability and the usual discipline on the studies of economic viability of opening new stores for the following years.

PROMOTER OF FINANCIAL PRODUCTS AND SERVICES: +AQUI!

Lojas Americanas created the Promoter of Financial products and services +AQUI! with the objective of offering to the customer a variety of financial services like insurance, loans and pre-paid cards.

The first action of the Promoter was the signature of the contract with Bradescard to jointly offer credit cards in the stores. The partnership has been structured based on a commissioning model, where the credit operation is BradesCard’s responsibility. Lojas Americanas will be responsible for offering the card to its millions of customers that go to the stores every week. The cards offer exclusive advantages for the customers of Lojas Americanas and can be used for international purchases. The cards also offer exclusive advantages to the customers of Lojas Americanas, besides the 50% discount on the Cinemark cinemas, free first annual fee on the additional card and much more. The new Lojas Americanas Card has already started to be offered in the Northeast region and will be available all over the country by the end of 2015. With the Promoter, Lojas Americanas hopes to serve even better the necessities of their customers and reduce the expenses with credit cards.

+Credit-Card:

+Gift Card:

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INDICATORS AND HIGHLIGHTS OF THE SUBSIDIARIES B2W DIGITAL

We are presenting below the results for 1Q15 of our subsidiary B2W DIGITAL (BOVESPA: BTOW3). The

accounting information that serves as the basis for the following comments are presented pursuant to international

financial reporting standards (IFRS) as well as the regulations issued by the Brazilian Securities Exchange

Commission (CVM) and the Novo Mercado listing regulations, and are in reais (R$). The comparisons refer to

1Q14.

B2W Digital announces Gross Revenue of R$ 2,469.9 million in 1Q15

In 1Q15, the consolidated gross revenue reached R$ 2,469.9 million comparing to R$ 1,974.1 million in 1Q14, representing a growth of 25.1%;

B2W Digital announces Adjusted EBITDA of R$ 127.8 million in 1Q15 In 1Q15, consolidated adjusted EBITDA reached R$ 127.8 million, representing a growth of 17.0% against the result of R$ 109.2 million in 1Q14;

B2W Digital reached 32% of traffic and 16% of orders placed through mobile devices in 1Q15 Access to B2W Digital’s websites through mobile devices reached 32% of traffic and 16% of orders placed in 1Q15. This evolution reflects recent efforts in conjunction with the technology companies acquired, Uniconsult and Ideais, which have significant expertise on this platform.

B2W Digital announces important new partnerships in Marketplace: Centauro, Tricae, Ultrafarma and Camisaria Colombo The new stores offer an even more complete assortment for the customer. In the last 12 months B2W Digital increased the number of available items within its Marketplace by a multiple of 10.

B2W Digital annouces the acquisition of e-smart

E-smart is the main developer of the e-commerce platform Magento. The acquisition of e-smart contributes to the acceleration of [B] Seller and Marketplace.

B2W Digital launches online stores for BR Foods, Drinkfinity and the 2016 Rio Olympic and Paralympic Games B2W Digital was chosen to operate the online stores for BRF and Drinkfinity (PepsiCo). In addition, B2W Digital was chosen as the Official Online Retail Operator of the 2016 Rio Olympic and Paralympic Games.

B2W Digital announces the expansion of the “In-store delivery” service for 200 additional Lojas Americanas stores by the end of 2015 After the success of the pilot project that started in 2014, B2W Digital will expand the “In-store delivery” service. With this service the customer can buy online and collect the product in the most convenient store.

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CORPORATE GOVERNANCE AND CAPITAL MARKETS

Since 1940, Lojas Americanas S.A. has been listed on the Brazilian Stock Exchange (BM&FBOVESPA). The Company has a shareholder base composed of common shares (LAME3) and preferred shares (LAME4). Lojas Americanas has a Board of Directors consisting of seven members – five appointed by the controllers and two appointed by the Board of Directors. Lojas Americanas also has a Fiscal Council formed by three members, one being indicated by the controllers and two indicated by the minority shareholders.

The Board of Directors and the Executive Board determine the Company's guidelines, supported by internal committees, including the Finance Committee, the People and Remuneration Committee, the Digital Committee and the Sustainability Committee.

Since 2006, the Company has maintained a commitment, as part of its bylaws, to concede 100% tag along rights for all of its common and preferred shares. This guarantees that all of Lojas Americanas’ shareholders will receive equal treatment in the event of a change of ownership, assuring them the right to sell their shares under the same terms extended to the controlling shareholders.

Below is a brief description of the major corporate events of the year:

On December 31 of 2014, at a Board of Directors Extraordinary Meeting, the members approved the distribution of the interest on equity, calculated based on the variation of the net worth, verified between 12.31.2013 and 12.31.2014, the distribution of the complement of the interest on equity will occur in 04.06.2015. On March 11, 2015, at a Board of Directors Extraordinary Meeting, the members approved the early payment of dividends that were the subject of the proposal for the use of the net profits, debited from Net Profits for the fiscal year ending December 31, 2014 in the total amount of R$ 60.5 million. These dividends are to be paid as of April 6, 2015 and imputed to the mandatory dividend. On March 11, 2015, at a Board of Directors Extraordinary Meeting, the members approved: I - The Managment Report and Financial Statements, accompanied by their respective Explanatory Notes, referring the current fiscal year ending in December 31, 2014, as well as the Independent Auditors Report. II – The maintenance of the report which gives support to the revisiting of fixed and intangible assets life. III – Maintenance of the tax credits of the income tax and the social contribution referring to the temporary differences on the Financial Statements in December 31, 2014. IV – Determinate the convocation of the Annual and Extraordinary Shareholders' Meeting, to submit to the shareholders the subjects of the meeting. On March 27, 2015, at a Board of Directors Extraordinary Meeting, the members approved: I – The cancellation of the ordinary and preferred shares kept in treasury. II – The end of the repurchase of self-issued shares program. III – The Company new repurchase of self-issued shares program, beginning in March 30,2015 and ending in March 29, 2016. On April 30, 2015, the Company’s General and Extraordinary Shareholders Meetings were held, at which the following resolutions were approved: I – To take recognizance of the accounts prepared by the managers and related financial statements for the fiscal year ended December 31, 2014 and the net income destinations for the fiscal year ended December 31, 2014; II – Proposal for adoption of the Capital Budget for the fiscal year of 2015; III – Proposal for the remuneration limit of the company’s administrators; IV – Change on the 5th Arcticle of the Company’s Bylaws to reflect the capital increase; V – Consolidation of the bylaws; VI – Establishment of the Fiscal Council and the election of Messrs. Ricardo Scalzo, Vicente Antonio de Castro Ferreira and Márcio Luciano Mancini to the position of full members and Messrs. Carlos Alberto de Souza, André Amaral de Castro Leal and Pedro Carvalho de Mello as alternate members.

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About Lojas Americanas S.A.

Lojas Americanas, one of the main retail chains in Brazil, is present all over the national territory through its multichannel chain, which comprises bricks-and-mortar stores, e-commerce, kiosks, telesales, TV channel and catalogues operations. The Company operates with two store formats: Traditional and Express. The first one has an average sales area of 1,200 square meters, a daily fulfillment and an assortment of 60 thousand items while the second format has an average sales area of 400 square meters, just-in-time logistics and an assortment of 15 thousand items, selected according to every location’s needs. Lojas Americanas’ assortment is in continuous evolution, always aiming at exceeding the clients’ expectations when meeting their needs. Currently, the 960 stores - 628 in the Traditional format and 332 in the Express format – equivalent to a 881.4 thousand square meter sales area) are present in 349 cities of 26 states plus the Federal District and are served by four distribution centers, located in Minas Gerais, São Paulo, Rio de Janeiro and Pernambuco. B2W DIGITAL is the leading e-commerce company in Latin America. The Company operates through a digital platform, with businesses that present a strong synergy and a unique model, multichannel, multibrand and multibusiness. B2W DIGITAL has a portfolio with the brands Americanas.com, Submarino, Shoptime, B2W Viagens, Ingresso.com, Submarino Finance, BLOCKBUSTER® Online and SouBarato, that offer more than 38 categories of products and services through the internet, telesales, catalogs, TV and kiosks distribution channels.

Lojas Americanas’ shares are listed on the BM&FBOVESPA through ticker symbols LAME3 (common) and LAME4 (preferred).

“We Always Want More”

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ANEXO I – INCOME STATEMENT

Lojas Americanas S.A.

Income Statement

(in million of Brazilian reais) 1Q15 1Q14 Variation 1Q15 1Q14 Variation

Gross Sales and Services Revenue 2,397.9 2,043.8 17.3% 4,711.1 3,899.1 20.8%

Taxes on sales and services (299.1) (274.7) 8.9% (615.9) (507.6) 21.3%

Net Sales and Services Revenue 2,098.8 1,769.1 18.6% 4,095.2 3,391.5 20.7%

Cost of goods and services sold (1,428.0) (1,194.1) 19.6% (2,951.9) (2,397.6) 23.1%

Gross Profit 670.8 575.0 16.7% 1,143.3 993.9 15.0%

Gross Margin (% NR) 32.0% 32.5% -0,5 p.p. 27.9% 29.3% -1,4 p.p.

Operating Revenue (Expenses) (408.6) (358.2) 14.1% (799.6) (693.8) 15.2%

Selling expenses (323.9) (280.7) 15.4% (631.3) (569.4) 10.9%

General and administrative expenses (21.9) (20.4) 7.4% (58.2) (40.4) 44.1%

Depreciation and amortization (62.8) (57.1) 10.0% (110.1) (84.0) 31.1%

Operating Income before Net Financial Result

and Equity Accounting262.2 216.8 20.9% 343.7 300.1 14.5%

Net Financial Result (201.4) (135.7) 48.4% (340.9) (290.0) 17.6%

Equity accounting (19.7) (29.5) -33.2% - - -

Other operating income (expenses)* 1.1 0.8 37.5% (4.6) (7.4) -37.8%

Minority interest - - - 22.4 21.8 2.8%

Income tax and social contribution (20.0) (26.5) -24.5% 1.6 1.4 14.3%

Net Income of the Period 22.2 25.9 -14.3% 22.2 25.9 -14.3%

Net Margin (% NR) 1.1% 1.5% -0,4 p.p. 0.5% 0.8% -0,3 p.p.

Adjusted EBITDA 325.0 273.9 18.7% 453.8 384.1 18.1%

Adjusted EBITDA Margin (% NR) 15.5% 15.5% - 11.1% 11.3% -0,2 p.p.

Parent Company

Periods ended in March 31

Consolidated

Periods ended in March 31

Adjusted EBITDA - Operating profit before interest, taxes, depreciation and amortization, other operating income/expenses, equity accounting, minority participation, statutory participation and discontinued operations.

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II – BALANCE SHEET


Balance Sheet

(In Million Reais) 03/31/2015 03/31/2014 03/31/2015 03/31/2014

ASSETS

CURRENT ASSETS

Cash and banks 754.4 583.4 928.0 703.6

Marketable securities 1,280.7 976.5 2,864.8 2,823.1

Clients accounts receivable 635.0 617.4 1,858.8 1,642.5

Inventories 1,851.5 1,626.4 3,065.6 2,848.5

Recoverable taxes 147.3 204.2 299.7 405.1

Prepaid expenses 22.0 18.7 55.2 50.2

Other accounts receivable 307.0 235.1 407.2 303.6

Total Current Assets 4,997.9 4,261.7 9,479.3 8,776.6

NON-CURRENT ASSETS

Marketable securities 19.5 18.1 - -

Loans e advances to subsidiaries companies 1.9 43.2 - -

Receivables from stockholders - Stock Option Plan 50.5 55.5 50.5 55.5

Deferred income tax and social contribution - - 634.6 387.6

Escrow deposits 238.7 205.7 270.6 237.0

Recoverable taxes 352.0 304.6 932.3 574.9

Investments 2,634.1 1,379.6 - -

Property, plant and equipment 1,888.3 1,532.6 2,377.2 1,878.3

Intangible assets 337.3 293.5 3,038.8 2,304.4

Total Non-Current Assets 5,522.3 3,832.8 7,304.0 5,437.7

TOTAL ASSETS 10,520.2 8,094.5 16,783.3 14,214.3

LIABILITIES AND SHAREHOLDER´S EQUITY

CURRENT LIABILITIES

Suppliers 2,467.8 2,118.1 4,104.4 3,937.9

Loans and financing 402.8 155.1 980.4 485.3

Debentures 425.4 102.0 425.4 251.6

Payroll and related charges 59.3 51.9 132.2 96.3

Taxes payable 63.3 58.6 91.2 72.5

Income tax and currents social contribution 13.4 18.8 23.5 23.0

Dividends and participations proposed 127.0 134.4 127.0 134.4

Provisions for contingencies 4.1 11.4 4.1 11.4

Other accounts payable 137.7 164.6 354.2 255.0

Total Current Liabilities 3,700.8 2,814.9 6,242.4 5,267.4

NON-CURRENT LIABILITIES

Long term liabilities:

Loans e advances to subsidiaries companies 21.7 4.2 - -

Loans and financing 1,972.3 1,627.7 3,996.8 4,613.1

Debentures 3,017.2 2,332.3 3,017.2 2,624.6

Taxes payable - 2.8 0.3 3.0

Income tax and deferred social contribution 41.3 37.7 41.3 37.7

Allowance for contingencies 43.2 46.2 363.9 93.5

Allowance for loss on investiments 22.2 15.6 - -

Advance for cession in mining usage rights 3.6 9.5 76.1 79.1

Total Non-Current Liabilities 5,121.5 4,076.0 7,495.6 7,451.0

SHAREHOLDER'S EQUITY

Social capital 869.0 548.8 869.0 548.8

Capital reserves 43.3 30.9 43.3 30.9

Goodwill on capital transactions (3.5) (203.1) (3.5) (203.1)

Profit reserves 870.9 967.0 870.9 967.0

Treasury shares (117.6) (170.0) (117.6) (170.0)

Comprehensive result 7.5 1.4 7.5 1.4

Profit/ loss for the period 22.2 25.9 22.2 25.9

Additional distributable dividends 6.1 2.7 6.1 2.7

Minority interest - - 1,347.4 292.3

Total Shareholders' Equity 1,697.9 1,203.6 3,045.3 1,495.9

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 10,520.2 8,094.5 16,783.3 14,214.3

The accompanying notes are an integral part of these financial statements


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ANEXO III – CASH FLOW STATEMENT

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CASH FLOW STATEMENT - INDIRECT METHOD

(In Million Reais) 03/31/2015 03/31/2014 03/31/2015 03/31/2014

Net Income for the Period: 22.2 25.9 22.2 25.9

Adjustments to Net Income:

Depreciation and amortization 65.8 60.9 114.0 87.8

Residual and deferred value of fixed assets write-off 8.0 2.4 8.0 2.7

Equity accounting 19.7 29.5 - -

Discontinued operations' profit realization 6.5 7.7 (24.4) (24.2)

Income tax and social contribution referred (5.4) (5.3) (5.4) (5.3)

Interest on credits 33.8 34.9 51.6 117.9

Adjustment in provision for contingencies 2.2 1.9 3.4 2.8

Stock option plan 0.3 0.2 6.6 (2.0)

Others 9.7 (1.4) 9.9 6.9

Minority interest - - (22.4) (21.8)

Adjusted Net Income 162.8 156.7 163.5 190.7

Decrease (Increase) in Operating Assets:

Trade accounts receivable (111.2) 91.5 130.6 139.7

Inventories (330.3) (255.6) (185.0) (380.7)

Recoverable taxes (46.2) (16.3) (112.9) (79.5)

Prepaid expenses (3.4) (8.5) (4.9) (11.0)

Escrow deposits (1.4) (5.4) - (5.1)

Other accounts receivable (61.5) (42.1) (77.4) (45.6)

(554.0) (236.4) (249.6) (382.2)

Decrease (Increase) in Operating Liabilities:

Suppliers (23.3) 29.9 (530.1) (42.3)

Payroll and related charges 1.5 (3.7) 8.0 (3.1)

Taxes payable (current and non-current) (131.4) (149.5) (132.0) (152.5)

Contingencies payments (current and non-current) (11.5) (13.9) (9.4) (13.9)

Loans and advances from subsidiaries 13.8 (6.0) - -

(35.1) (27.5) (101.3) (46.2)

(186.0) (170.7) (764.8) (258.0)

Net Cash Provided (or Used) by Operating Activities (577.2) (250.4) (850.9) (449.5)

Cash Flow from Investing Activities

Marketable securities 693.8 476.4 759.6 841.3

Discontinued operations' realization (0.6) - - -

Investiments on subsidiaries (100.8) (110.8) (125.8) (143.9)

Plant, property and equipment (30.6) (25.8) (142.4) (158.6)

Intangible 0.3 0.3 - -

Net Cash Provided (or Used) by Invest Activities 562.1 340.1 491.4 538.8

Cash Flow from Financing Activities

Loans e financing ( current and non-current):

Borrowings 81.2 269.8 431.5 273.0

Liquidations (36.4) (39.2) (76.8) (104.3)

44.8 230.6 354.7 168.7

Debentures (current and non-current)

- - - -

- - - -

- - - -

Discounted receivables (7.0) (62.0) (6.8) 21.4

Receivables from Stock Option Plan 0.5 0.1 0.5 0.1

Goodwill of the subsidiaries shares subscription (0.4) - (0.4) -

Interest on equity and dividends paid (12.3) - (12.3) -

Net Cash Provided (or Used) by Financing Activities 25.6 168.7 335.7 190.2

Net Increase (Decrease) in cash 10.5 258.4 (23.8) 279.5

Cash at the begining of period 743.9 325.0 951.8 424.0

Cash at the end of period 754.4 583.4 928.0 703.5

Net Increase (Decrease) in cash 10.5 258.4 (23.8) 279.5

The accompanying notes are an integral part of these financial statements


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Number of Stores Sales AreaNumber of

Associates

03.31.2014 856 807 thousand m² 19,001

Opened 9

Transfered/Deactivated -2

06.30.2014 863 813 thousand m² 18,942

Opened 16

Transfered/Deactivated -2

877 824 thousand m² 19,346

Opened 75

Transfered/Deactivated -

12.31.2014 952 876 thousand m² 20,771

Opened 5

Transfered/Deactivated -

03.31.2015 957 881 thousand m² 20,980

09.30.2014

Evolution of the number of stores, associates and sales area - Lojas Americanas

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EARNINGS RESULTS CONFERENCE CALL

EBITDA (CVM 527/12) – Net income of the period plus income taxes, net financial expenses of financial revenues and depreciation, amortization and depletion. Adjusted EBITDA (Operating profit before interest, taxes, depreciation and amortization, other operating income/expenses, equity accounting, minority participation, statutory participation and discontinued operations) is presented as additional information because we believe it represents an important indicator of our operating

performance, besides being useful for keeping the comparability with previous reported results. 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 report 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 BLOCKBUSTER® trademarks are owned by Blockbuster Inc. and Lojas Americanas S.A. has the right to use these trademarks in the activities of video rental and sales operation. MSCI Brand logo: The use of Morgan Stanley Capital International Inc. registered trademarks and indices ("MSCI") does not constitute any type of sponsorship, endorsement or

promotion on the part of MSCI, its affiliates, its suppliers or other parties involved or related in the compilation, computation or creation of any MSCI index. MSCI’s indices are registered trademarks of MSCI or its affiliates and Lojas Americanas S.A. has been granted a license to use these trademarks for given purposes.

consolidated gross revenue of r$ 4.7 billion in … · has a portfolio with the brands...

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