2Q06 Results Conference Call
Friday, August 11, 2006
Time: 11:30 a.m. (US EST) / 12:30 p.m. (Brasilia Time)
Tel: +1 (973) 935-8893 / Code: 7715040
Replay: +1 (973) 341-3080 / Code: 7715040
2
Substantial Growth of Operating Indicators (vs. 1H05)
35.8% growth of Consolidated Net Revenue
EBITDA 34.4% higher (R$156.2 million)
Operating Income 35% higher (R$116.1 million)
Opening of 44 stores in the last 4 quarters (8 in 2Q06)
Gross Revenue (R$641.8 million) 96% higher
EBITDA Margin around 13%
Capture of new sinergies from Shoptime incorporation
Approval of the incorporation of Americanas.com remaining shares
Americanas Taií regulation concluded
Launching of Private Label and Personal Loan cards
EBITDAR$ mn
+ 34.4% 156.2
1H05 1H06
1H06 Operating Highlights
3
Gross Revenue
Sales Area (thousand m2):
CAGR 01/06: 21.7%
1H01 1H02 1H03 1H04 1H05
2,074.5
1H06
1,527.6
1,278.1
961.6832.7775.8
+ 35.8%R$ mn
235 235 248 263 303 343
CAGR 01/06: 7.9%
+ 13.2%
“Same Store Sales” Net Revenue
Growth 1H05/1H06: 10.9%
4
Revenue per Associate (R$ thousand):
1H01 1H02 1H03 1H04 1H05
22.1%
1H06
22.2%22.5%23.5%
24.5%
27.4%
-0.1 p.p.
% of Net Revenue
72.5 86.9 111.1 146.1 157.5 192.7
Operating Expenses
Impacts:
Shoptime Acquisition
44 New Stores
CAGR 01/06: 21.6%
+ 22.3%
5
EBITDA and EBITDA Margin
1H01 1H02 1H03 1H04 1H05
156.2
1H06
116.2105.1
75.9
52.4
21.7
+ 34.4%R$ mn
34.4% growth in 1H06 and margin maintenance at the same level
Considers the implementation of two new businesses
3.4%
7.7%9.4%
10.5% 10.0% 9.9%
6
Net Income
1H01 1H02 1H03 1H04 1H05
14.2
1H06
115.0
11.1
31.521.8
2.1
Net IncomeR$ mn
Adjusted Net Income*R$ mn
+ 74.3%
12.9
1H05 1H06
*Excludes effects of non-operating results and income taxes / social
contribution
7.4
Includes R$105.8 million Non-Operating
Result
7
Financial Position
Gross DebtR$ mn
Stable Gross Debt
Priorities of Cash allocation:
R$315 million of investments, composed of:
Shoptime acquisition
Opening of 44 new stores
Improvement of Operational and Tecnological Processes
Capitalization of Americanas Taií
Increase of equity participation on Americanas.com
Payment of dividends: R$ 120 million
Buy-back Program: R$ 25.9 million
Net Debt of R$246.7 million on 06/30/06
Reduction of the ratio Net Debt/Equity of 2.3 p.p.
1H05 1H06
1,188.6
1,187.7
8
Launching of Private Label and Personal Loan cards in May/2006
135 thousand Private Label cards and 60 thousand Personal Loan cards issued
Projection of 1 million cards in 12 months
Sales made through Private Label card already represent 2.5% of parent company sales
First Private Label to be accepted at the Internet
Launching of cobranded card Americanas Itaú (Mastercard/Visa) in July and international version in 2H06
Americanas Taií
Co-Branded international card (Visa/ MC)
Co-Branded card (Visa/ MC)
Personal Loan cardPrivate Label card
2H06July/2006May/2006May/2006
9
First management month, synergies initially projected: R$ 49 mn (present value)
In 10 months, synergies already captured, “best practices”: R$ 160 mn (present value)
Investments in Shoptime acquisition: R$117.8 mn (3,5 x EBITDA 2006 projected for
Shoptime)
1H06 Consolidated Gross Revenue: R$641.8 million – 96% higher than 1H05
Consolidated EBITDA grew by 93%, with EBITDA Margin around 13% of NR
Americanas.com / Shoptime
10
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 release, 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.
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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 indices are trademarks of MSCI or its affiliates and have been licensed for use for certain purposes by Lojas Americanas S.A.
Investor Relations
Murilo Corrêa
Phone: (+55 21) 2206-6505 / Fax: (+55 21) 2206-6898
e-mail: [email protected]
IR website: http://ir.lasa.com.br