J.P. Morgan 5th Annual Brazil Check Up

Magazine Luiza At-a-GlanceMore than 50 years of growing the Brazilian retail market

Market Leadership

�One of Brazil’s largest durable goods retail chains with 613* stores nation-wide

− Gross revenues of R$5.7 billion and EBITDA of R$320 million in 2010

− 21 thousand employees serving 23 million customers

Strong corporate culture and focus on people and innovation

Unique multi-channel model under a single brand

�Physical stores, virtual stores, e-commerce website and telephone sales

Leadership in the Brazilian market

2

Focus on Brazil’s fastest growing socioeconomic segment

�The “C” (emerging middle class) represents 53% of Brazil’s population or more than 102 million people

History of successful organic growth and acquisitions

�Opened more than 150 stores in the last 5 years

�8 acquisitions in the last 8 years and recent entry in the high growth northeast market (Lojas Maia – 136 stores)

� July 2011, conclusion of the acquisition of 121 stores of Baú da Felicidade

Pioneer in Financial Services for retail

�First retail chain to establish JVs with financial institutions focusing on consumer credit

Financial discipline focused on results

* Not considering Baú da Felicidade stores.

Magazine Luiza At-a-Glance (cont.)Broad geographic footprint with a balanced mix of sales

(% of sales, 2010)(% of stores by region)

Cabedelo

Simões Filho

Contagem

Geographic footprint covering Brazil’s main regions (75% of GDP) Balanced sales mix (1)

613* storesToys,

furnitures,

home

appliances and

other

24%

Technology

23%

3

Note: 1 Does not include Lojas Maia

Distribution centers (8)

States with stores (604)

ContagemRibeirão Preto

LoureiraIbiporã

Navegantes

Caxias

Sound & image

23%

Household

appliances

30%

South

25%

Northeast

23%

Central-

west

2%

Southeast

50%

* Not considering Baú da Felicidade stores.

Proven History of Strong Organic Growth and Successful Acquisitions

Continuous growth throughout adverse economic scenarios

5.3

604*

253

351 346

391

455444

Northeast:+136 storesMadol, Killar

São Paulo (Capital):+46 storesLojas Líder

2011121** stores

4

0.5 0.6 0.70.9

1.4

1.92.2

2.6

3.2

3.8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

96111

127

174Santa Catarina:

+100 stores

Rio Grande do Sul:+51 stores

Campinas:+20 storesUpstate São Paulo:

+5 stores

Rede Wanel

Gross Revenues from Retail Operations (R$ billion) Total Stores

Start of sub-primeForex during

election of Lula

Lehman Brothersbankruptcy Stress in EUSeptember 11

* Not including 9 stores opened in 1H11. ** Number of acquired stores.

Additional stores with the acquisition of Lojas do Baú da Felicidade

Strategic retail locations covering a large part of the states of São Paulo and Paraná, situated so as to

attract the highest possible number of potential customers.

Total of 121 stores

São Paulo Paraná

80 stores40 stores

Our Strategic Positioning

5

* Revenue of R$4.5 million from the Minas Gerais store, giving total gross revenue of R$415 million in 2010.•The above figures for 2010 are unaudited.* Out of 121 stores, 1 store is located in Minas Gerais.

Total sales Area ('ooo m²) 19.7 Total sales Area ('ooo m²) 26.1

Gross Revenue (R$ million) 200.6 Gross Revenue (R$ million) 209.5

Gross Revenue per Sales Area (R$ '000/m²) 10.2 Gross Revenue per Sales Area (R$ '000/m²) 8.0

Number of Stores 40 Number of Stores 80

Average Sales Area (m²/store) 493.1 Average Sales Area (m²/store) 325.8

Our Unique Business Model

6

Our Unique Business Model

Strong corporate culture, focused on valuing people1

2 Integrated sales platform with multiple sales channels

Unique Business ModelDifferentiated positioning to capitalize on industry growth

7

Large customer base, with relationship management targeting customer loyalty and retention3

4Broad, competitive portfolio of services and financial products

Assisted sales model supported by enthusiastic teams

Strong Corporate Culture: A Competitive Advantage

Product Variety

Punctualityof Delivery

4.5%

OfferedBrands3.2%

Other7.1%

Price

Service and credit highly influential on purchasing decisionsBrazil’s only retail company among the best places to work

Motivated and enthusiastic teams areessential to enable a good purchase, thusa good sale.

8

Source: ML Survey – 802 interviewees – Data Popular Feb. 2008

Product Variety8.4%

Service/ Credit37.0%

Price39.8%

Strong Corporate Culture, Focused on Valuing People

� Availability of management information

Monthly store P&L available on the intranet

� Constant monitoring by employees (morning meeting)

� Sales staff and managers have flexibility to negotiate sales conditions within a range

� Local marketing budgets

� All levels: variable compenstaion based on targets and service quality

� Sales staff: commissions based on gross profit, financial margin and sales

� Incentives for employee

� Values and beliefs, training, sales promotions, motivation and recognition through official channels

Luiza Radio1

Luiza TV2

Town Halls2

Website / Intranet1

Communication Transparency Empowerment Compensation

9

meeting)

� Hotline to the President

� Incentives for employee participation in the IPO

� Non-financial recognition. Ex: Outdoor

1. Daily event2. Weekly events

Strong Corporate Culture: Best Places to Work

10

� 14 years among the Best Places to Work

� Best Company for Women to Work in 2007

� Best Company for Executives to Work in 2008

� Best Company to Work for in 2003

� Best Company to “Speak” to the employees in 2010

� Best Company to “Listen” to the employees in 2011

Brazil’s only retail company among the best places to work

� Among 100 largest Companies in Brazil

� 97% adhesion with the change of office to São Paulo

Magazine Luizawas elected 5th best service in an Exame/IBRC

study (May/2011)

Strong Corporate Culture: A Competitive AdvantageMagazine Luiza’s Services

11

Source: Exame Magazine, May 4, 2011.

(May/2011)

Exceptional Relationship Management Drives Customer LoyaltyIndustry-leading marketing strategies

� New market entry with a significant presence

– 50 stores opened in one day in São Paulo

– Acquisition of Lojas Arno:

51 stores in Rio Grande

do Sul

– Acquistion of Lojas Maia:

136 stores in the Northeast

� Fantastic Sale (Black Friday)

− Largest sale in Brazil

− Lines form 10 days before the event

− 10 days of revenues in one

dayCapacity to Enter

New Markets

High Impact Campaigns

23 million clients

12

85% of the credit cards issued by Luizacred are active

� More than 10 years of purchase and sales data

� Statistical models of purchasing behavior and price

� CRM available at the stores

(Boomerang)

� Gold Clients

− Only program in the sector

− 949 thousand clients

− Gold clients spend 55% more

− Gold Day: stores opened exclusively for

program clients

CRM Tools

LoyaltyPrograms

− Telemarketing during downtime by

sales staff (4.7mm calls)

Multi-channel: Many Buying PossibilitiesTo be where, when and how customers want us

536 stores in 16 states 67 stores in 4 states

� Free-standing stores or in

malls

� Physical showroom and in-

store stock

� Size: 700-1.000 m2

� Small or mid-sized cities

� Direct delivery

� No physical showroom or

stock

� Size: 130 m2

� Sales per m2 is double

conventional store

Multi-channel strategy meets customer demands

13

Trained Teams 70.5 million page views

� 27.000 total SKU´s

� More than 10 million unique

visitors

� 75% growth in 2010

� Same product mix as the

Internet

� Dedicates sales team

Our Corporate Governance

14

Our Corporate Governance

Name / PostYears with the

CompanyExperience

(years)

Established corporate governanceExecutives with ample experience in the Brazilian retail industry

Experienced Executives with Strong Corporate Governance

� Controlling shareholders with more than 50 years in the industry

� Board of Directors with independent members since 2005

� Audit Committee led by an independent member

� Financial statements audited for the past 10 years by a “Big Four”

firm

� Senior Management: retention plan (stock options)

Luiza Helena TrajanoPresident

40 40

Marcelo SilvaCEO

2 33

Roberto BellissimoCFO

10 10

Industry expertise with proven growth and integration capacity

15

Shareholding by CIPEF - private equity fund of the Capital Group

� CIPEF

− Five private equity funds with more than US$2.5 billion

invested since 1997

� A successful history of investments in Brazil and in other emerging

economies

− Abril S.A., Arcos Dorados, Constellation Overseas and

Grupo IBMEC

Fabrício GarciaChief Commercial Officer

14 14

Frederico TrajanoChief Sales and Marketing Officer

11 13

Isabel BonfimChief Management and Control

Officer

29 29

Marcelo Barp (1)

Luizacred3 8

Luis Felipe (1)

Luizaseg5 20

Note 1. Years of experience in the financial services industry

Corporate Structure

1 2

100%50%40.55%100%

16

1 2

(1) JV with Itaú Unibanco

(2) JV with Cardif

9.45%

Conclusion of the acquisition in July 2011.

Financial Information – 2Q11

17

Financial Information – 2Q11

Ownership Structure

Pre- IPO Post- IPO

LTD Capital Int'l. Inc.

Free Float

29.7%

18

186,494,467 shares150,000,000 shares

LTD

Administração e

Part. S.A.

75.4%

Wagner Garcia

Part. S.A.

5.6%

Founding Family

Members

6.7%

Capital Int'l. Inc.

(Private Equity

Fund)

12.4%

LTD

Administração e

Part. S.A.

60.6%

Wagner Garcia

Part. S.A.

4.5%

Founding Family

Members

2.7%

Capital Int'l. Inc.

(Private Equity

Fund)

2.5%

2.202

3.227

Consolidated Gross Revenue (R$ million)

2.381

3.440

Retail Total

+ 39.4%

+ 46.5%

+ 38.2%

+ 44.5%

19

1.0271.175

1.588 1.639

1Q10 2Q10 1Q11 2Q11 1H10 1H11

1.1191.262

1.696 1.744

1Q10 2Q10 1Q11 2Q11 1H10 1H11

+ 38.2%

(*) Gross revenue growth year-on-year.

456 456

604 613

+9 stores+ 34.4%

+121 stores

• 35 virtual

• 04 extended

• 70 conventional

• 12 divested

Number of Stores (end of period)

20

456 456

1Q10 2Q10 1Q11 2Q11

(*) On July 29 , 2011, Lojas do Baú acquision was concluded.

25,6%27,0%

16,1%

31,1%

14,4%

31,9%

19,7%

Same Stores Sales Growth (%)

21

11,3%

16,1%14,4%

2Q10 2Q11 1H10 1H11

Same Physical Stores Sales Growth Same Stores Sales Growth

174 182

240

356

+ 39.9%

+ 48.3%

Internet (R$ million)

22

110 130

174 182

1Q10 2Q10 1Q11 2Q11 1H10 1H11

Lojas Maia Growth – Gross Revenue (R$ million)

272

491

+ 63.9%

+ 80.6%

23

127 145

253 237

272

1Q10 2Q10 1Q11 2Q11 1H10 1H11

Note: 2010 pro-forma figures, since Lojas Maia was acquired in Aug/10.

Consolidated Net Revenue (R$ million)

2.014

2.889

+ 37.3%

+ 43.4%

24

941 1.073

1.416 1.473

1Q10 2Q10 1Q11 2Q11 1H10 1H11

Consolidated Gross Income (R$ million)

708

953

+ 31.0%

+ 34.6%

25

339 368

470 483

1Q10 2Q10 1Q11 2Q11 1H10 1H11

20,5% 19,6%21,4%

19,8%

Selling: dilution explained by the increase in same stores sales and internet

G&A: increase explained by São Paulo’s office and Lojas Maia integration

-90bps -160bps

ConsolidatedOperating Expenses as % of Net Revenue

26

4,4% 5,1% 4,3% 5,1%

2Q10 2Q11 1H10 1H11

Selling G&A

+70bps +80bps

7172

131

156

Consolidated EBITDA (R$ million)

+ 2.1%

+ 19.0%

2Q11 Retail EBITDA: +12.0% | R$69 million

27

7172

2Q10 2Q11 1H10 1H11

6.6% 4.9% 6.5% 5.4%EBITDAMargin

56

88

Partially benefited by IPO resources

Includes Lojas Maia acquisition effects

Includes increase in interest rates

+ 53.7%

+ 58.2%

Consolidated Financial Expenses (R$ million)

28

28

42

56

2Q10 2Q11 1H10 1H11

+ 53.7%

Consolidated Net Income (R$ million)

16

25

17

29

5

2Q10 2Q11 1H10 1H11

1.5% 0.3% 1.3% 0.6%Net

Margin

� Luizacred financed half of Magazine Luiza sales

� Share of Luiza card at Lojas Maia to 28% in 2Q11

Financed Mix Sales (% total sales)

20% 21%31%

23%

30

42% 38%28%

37%

13%12%

2%

11%

25% 28%

39%

30%

ML 2Q10 ML 2Q11 Maia 2Q11 Total 2Q11

Luiza Card CDC Third Party Cards Cash Sales/Down Payment

CDC: Direct Consumer Credit.

2.271

3.463

3.975

+ 75.0%

Cartão Luiza – Total Credit Card Base (‘000)

31

2.146 2.271

1Q10 2Q10 1Q11 2Q11

493

923

+ 56.2%

957

1,495

Luiza Card Spending (R$ million)

32

244 336

219237

493

2Q10 2Q11

Inside with interest Inside with no interest Outside

Revenue (R$MM) & Provisions/Revenue (%) Portfolio (R$MM) & Provisions/Portfolio (%)

190

232

44%

43%44%

44%

45%

45%

200

250

1.874

2.668

6,0%

7,0%

8,0%

9,0%

10,0%

2000

2500

3000

Luizacred

33

44%

40%

41%

41%

42%

42%

43%

43%

0

50

100

150

2Q10 2Q11

Revenue Provisions/Revenue

4,5%

3,7%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

0

500

1000

1500

2Q10 2Q11

Portfolio Provisions/Portfolio

4.3%Recurring Provisions

PORTFOLIO (R$ million) Jun/11 Mar/11 Dec/10 Jun/10

Total Portfolio 2,668.3 100.0% 2,424.2 100.0% 2,359.7 100.0% 1,873.5 100.0%

000 to 014 days A 2,020.5 75.7% 1,771.8 73.1% 1,825.4 77.4% 1,392.5 74.3%

015 to 030 days B 119.6 4.5% 128.1 5.3% 130.8 5.5% 102.1 5.4%

031 to 060 days C 75.4 2.8% 76.6 3.2% 87.2 3.7% 59.4 3.2%

061 to 090 days D 65.3 2.4% 72.4 3.0% 44.5 1.9% 51.8 2.8%

091 to 120 days E 55.3 2.1% 83.2 3.4% 36.9 1.6% 41.6 2.2%

Luizacred – Portfolio (R$ million)

34

121 to 150 days F 51.8 1.9% 63.3 2.6% 31.8 1.3% 38.9 2.1%

151 to 180 days G 64.6 2.4% 44.8 1.8% 29.3 1.2% 37.6 2.0%

180 to 360 days H 215.9 8.1% 184.0 7.6% 173.7 7.4% 149.7 8.0%

Overdue up to 90 days 260.2 9.8% 277.1 11.4% 262.6 11.1% 213.2 11.4%

Overdue above 90 days 387.6 14.5% 375.3 15.5% 271.7 11.5% 267.8 14.3%

Tota l Overdue 647.8 24.3% 652.4 26.9% 534.3 22.6% 481.0 25.7%

Reduced Delinquency ratios

-140bps

Investor Relations

ri@magazineluiza.com.brwww.magazineluiza.com.br/ri

35

Any statement made in this presentation referring to the Company’s business outlook, projections and financial and operating goals

represent beliefs, expectations about the future of the business, as well as assumptions of Magazine Luiza’s management and are

solely based on information currently available to the Company. Future considerations are not a guarantee of performance. These

involve risks, uncertainties and assumptions since they refer to forward-looking events and, therefore depend on circumstances thatmay not occur. These forward-looking statements depend substantially on the approvals and other necessary procedures for the

projects, market conditions, and performance of the Brazilian economy, the sector and international markets and hence are subject to

change without prior notice. Thus, it is important to understand that such changes in conditions, as well as other operating factors

may affect the Company’s future results and lead to outcomes that may be materially different from those expressed in such future

considerations. This presentation also includes accounting data and non-accounting data such as operating, pro forma financial data

and projections based on the Management’s expectations. Non-accounting data has not been reviewed by the Company’s

independent auditors.

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