business to world · this presentation contains forward-looking statements relating to the...
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BUSINESS TO WORLDCOMPANHIA GLOBAL DO VAREJO
4Q09 Results Conference Call4Q09 Results Conference CallMarch 12th, 2009 (Friday)
Time: 1:00 p.m. (Brazil) 11:00 a.m. (US EST)
Phone: +1 (786) 924.6977
Code: B2W
Replay: until March 18th, 2009Access: +55 (11) 4688.6312 Code: 46200
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Forward-looking statements
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 financial statements were prepared and are presented in accordance with the norms issued by the Securities Exchange Commission (known locally as CVM), as well as the Novo Mercado listing rules. Except when otherwise specified, the analyses refer to consolidated results, considering adjustments promoted by Law 11,638/07.
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Highlights of 4Q09 and 2009
Gross Revenue (GR): +16% in 4Q09 and +14% in 2009
Net Revenue (NR): +31% in 4Q09 and +22% in 2009
EBITDA: +49% in 4Q09 and +20% in 2009
EBITDA Margin over GR: +2.6 p.p in 4Q09 and +0.5 in 2009
Net Income: R$14 million in 4Q09 and 48 million in 2009
Cash Conversion Cycle : 1-day improvement in 4Q09
Compra com 1-Click in Submarino (“One Click Shopping”): launched in jan/10
International Expansion: online ticket sales expansion to every Cinemark cinema in Mexico (more than 30 places).
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4,478
5,107
2008 2009
1,296
1,506
4Q08 4Q09
Gross Revenue (R$ millions)
Gross Revenue: +16% in 4Q09 and +14% in 2009
+16% +14%
2010: Market Research in preparation
Range of growth for e-commerce between 15% and 35%
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3,117 3,793
2008 2009
877 1,145
4Q08 4Q09
Net Revenue (R$ millions)
Net Revenue: +31% in 4Q09 and +22% in 2009
+31%
+22%
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R$ MM % NR R$ MM % NR % Δ p.p.Gross Revenue 1,505.6 131.5% 1,295.6 147.7% 16% -16.2 p.p.
Net Revenue 1,144.9 100.0% 877.3 100.0% 31% -
Gross Profit 315.3 27.5% 252.5 28.8% 25% -1.3 p.p.
EBITDA 174.0 15.2% 117.1 13.3% 49% 1.9 p.p.
R$ MM % GR R$ MM % GR % Δ p.p.Gross Revenue 1,505.6 100.0% 1,295.6 100.0% 16% -
Net Revenue 1,144.9 76.0% 877.3 67.7% 31% 8.3 p.p.
Gross Profit 315.3 20.9% 252.5 19.5% 25% 1.4 p.p.
EBITDA 174.0 11.6% 117.1 9.0% 49% 2.6 p.p.
Variation
Variation
4Q08Restatement
OVER GROSS REVENUE
4Q09 4Q08Restatement
OVER NET REVENUE
4Q09
Tax ChangeFor comparison purposes, the margins usually calculated as a percentage
of the Net Revenue should be calculated as a percentage of the Gross Revenue.
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117
174
4Q08 4Q09
407 489
2008 2009
EBITDA (R$ millions and % of Net Revenue)
EBITDA: +49% in 4Q09 and +20% in 2009
EBITDA Margin over GR: +2.6 p.p in 4Q09 and +0.5 in 2009
+20%
+49%
97 94
81
70
96
4Q093Q092Q091Q094Q08
Suppliers
65
61 59
54 54
4Q093Q092Q091Q094Q08
Inventories
101
105
100 98
112
4Q093Q092Q091Q094Q08
Account Receivables
697278
82
70
4Q093Q092Q091Q094Q08
Cash Conversion Cycle
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Cash Conversion Cycle - Parent Company
+1 day+11 days
-11 days
-1 days
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COMPRA COM 1-CLICK (“ONE CLICK SHOPPING”)
Choose a deliverylocation
Choose a cardNow just click
You register just one time
Multiple adresses
Various payment forms
Total freedom
A lot of products with just 1-Click
Following the path of innovation, the Submarine lauched in January 2010 another great innovation, the service Compra com 1-Click (“One Click Shopping”).
This is a pioneering action of the brand in Brazil, which aims to facilitate and streamline the buying process online, improvingthe consumer experience.
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Submarino Card
Submarino Card: The participation of the card into Submarino website has increased
gradually and reached an average of 26% stake in the 4Q09 salesMastercard customer base, driving strong growth in the number of
active cards
Growth of 68% in the amount of tickets sold in Brazil in 2009Expansion the sale of tickets online for the entire network
Cinemark Mexico in 2010 (more than 30 cinema ) We began exploring new countries in Latin America
New Submarino Viagens website, with new look and innovativefeatures
High rates of growth, and better margins compared to ParentCompany
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Priorities for Next QuartersBalance among growth of sales, operational margin and working capital
Scale Gain reducing operating expenses
Finalization of Operational and Technological integration of thebrands
CAPEX in 2010 between R$200MM e R$250MM
Increased active customer base, frequency of purchases and sales conversion
Improvement of our subsidiaries operation
Technology upgrade and innovation to all our business units
Continuous staff training.
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4Q09 Results Conference Call
B2W Investor Relations Teamhttp://[email protected]: +55 (21) 2206.6000
BUSINESS TO WORLDCOMPANHIA GLOBAL DO VAREJO