Midway Financeira - Guararapes

Company
Presentation
CONTACTS:
Flávio Rocha – CEO and IRO Officer
Tulio Queiroz – Controller and IR
[email protected]
1 Guararapes Group
2 Expansion Plan
3 Midway Financeira
4 Real Estate
5 Macroeconomic Indicators
6 3Q10 Recap
\\ Mission, Vision and Values
 Mission: to provide an ever growing number of people the ability to express
themselves through fashion
 Vision: to be the leader of the national fashion market in a scenario formed
predominately by competitors operating in the formal market.
 Values: Ethics and Respect; Financial Solidity; Administrative Austerity;
Meritocracy; Continuous Improvement; Social Responsibility; Customer Service;
Corporate Governance; Winning Attitude.
\\ Business Structure
 Brazil’s largest apparel manufacturer
 6 production units: States of CE and RN
 Business integration: 100% of sales
Riachuelo
98%
99.9%
Transportadora
Casa Verde
100%
 One of Brazil's largest apparel department stores
 124 stores: 22 states and Federal District
 2 Distribution centers: Natal/RN and Guarulhos/SP
99.9%
 Second Largest Private-label Operation in Brazil
 Approximately 16.9 million cards
 Products: Personal loans, Cash withdrawals, Insurance
and more
\\ Traditional Sales Model
Only Point
of Contact
\\ The Partnering Model
Sales
Rep
Supplier
Marketing
Manufact Customer
Service
&Distrib
Finance
A/P
IT
R&D
Senior Management
Buyer
Retailer
Merchandising
Store Ops
Warehousing
IT
Finance
Planning
Senior Management
A/P
\\ Vertical Integration
Design
Retail
Apparel Manufacturing
Distribution and Logistics
\\ Guararapes Confecções: Overview

Responsible for ~50% of Riachuelo’s sales

Room for production growth

Investments in production line
Acquisition of new machinery
Addition of a second work shift
Plant located in Natal (municipality of Extremo)
~240,000 items / day
Plant located in Fortaleza
~ 60,000 items / day
\\ Our Beliefs
Fast Fashion
 Agile production and distribution of collections
 Guarantees rapid dissemination of new trends
 Generates additional value for collections
 Greater variety of items displayed per square meter
 Partnerships with famous designers, such as Oskar Metsavaht
and Cris Barros
Integration
 Higher quality products at lower
prices.
Focus on segment “fashion within the reach of everyone”.
\\ Our Brands
Women’s Fashion
Men’s Fashion
Children’s Fashion
Teen Fashion
Home Fashion
\\ Share of Guararapes products in Riachuelo’s sales
(Financial Volume)
51.3%
48.0%
32.8% 33.8% 33.9%
24.8%
27.2%
23.3%
53.4%
49.3% 48.2%
54.9%
51.2%
47.1% 46.4%
36.9%
25.3%
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
\\ International Players
Gross Margin
Guararapes:
+6.1 p.p.
70.0%
60.0%
50.0%
49.3%
47.6%
51.1%
51.9%
41.0%
40.3%
37.5%
36.1%
35.5%
62.8%
59.9%
61.6%
57.1%
56.8%
56.7%
45.8%
40.0%
61.5%
61.1%
59.5%
56.2%
30.0%
20.0%
10.0%
0.0%
2006
2007
H&M
Source: J.P.Morgan and IR Websites (GAP Inc., Inditex, H&M)
2008
Inditex
2009
Guararapes
9M10
GAP
\\ International Players
EBITDA Margin
25.0%
20.0%
22.4%
21.8%
19.8%
23.5%
22.8%
23.2%
22.7%
21.0%
21.5%
21.3%
20.2%
19.1%
22.3%
20.0%
16.3%
15.0%
13.3%
12.8%
10.7%
10.0%
8.9%
8.3%
5.0%
0.0%
2006
2007
H&M
Source: J.P.Morgan and IR Websites (GAP Inc., Inditex, H&M)
2008
Inditex
2009
Guararapes
9M10
GAP
745
745
Million R$
Million R$
\\ Net Revenue and SSS Growth
607
583
607
583
378
291
291
378
384
384
606
313
406
418
406
418
478
527
478 606
527
348
478
393
478
Same Store Sales Growth
Same Store Sales Growth
1Q
2Q
3Q
4Q
2007
1.8%
3.6%
2.8%
2.6%
2008
9.8%
7.9%
8.2%
-1.0%
2009
0.2%
0.3%
5.0%
10.2%
596
466
466
Net Revenue
2006
17.0%
7.6%
6.4%
3.3%
519
519
393
348
313
596
2010
11.8%
7.0%
8.4%
629
629
1 Guararapes Group
2 Expansion Plan
3 Midway Financeira
4 Real Estate
5 Macroeconomic Indicators
6 3Q10 Recap
\\ Expansion Plan – Sales Area and Stores
+ 23 stores
+ 16 stores
146
+ 6-1 stores
+9 stores
Average area of retail
stores: 2,400m²
123
+ 7 stores
+ 9 stores
86
70
73
74
76
77
2001
2002
2003
2004
2005
2006
93
2007
102
2008
107
2009
Guararapes-Riachuelo
+112.2% in
Operating area
69 new stores
366.7
314.5
258.0
206.2
277.7
230.4
172.8
77
Stores
86
Stores
93
Stores
102
Stores
107
Stores
123
Stores
146
Stores
2005
2006
2007
2008
2009
2010
2011
2010
2011
\\ Stores Operation
124 Riachuelo Stores
Distribution Centers
N: 8 stores
AM: 4 stores
PA: 3 stores
TO: 1 store
NE: 32 stores
AL: 3 stores
BA: 9 stores
CE: 4 stores
MA: 2 stores
PB: 3 stores
PE: 3 stores
PI: 2 stores
RN: 4 stores
SE: 2 stores
MW: 16 stores
DF: 6 stores
GO: 5 stores
MS: 3 stores
MT: 2 stores
S: 14 stores
PR: 9 stores
RS: 3 stores
SC: 2 store
SE: 54 stores
ES: 2 stores
MG: 8 stores
RJ: 9 stores
SP: 35 stores
\\ Potential of the Brazilian market
Macroeconomy
Household Consumption
Estimated GDP in 2010
R$ 1.930 trillion³
R$ 3.22 trillion¹
World’s 8th largest GDP¹
GDP growth of 7.5%²
Per-capita GDP of R$ 17,500¹
(60% of GDP)
Apparel
R$ 115 billion4
(around 6% of consumption²)
Growth of 10% in sales volume
and 15.8% in nominal revenue
in last year
1 LCA Consultores estimates.
2 IBGE – First three quarters of 2010 and the last quarter of 2009 in relation to the same period a year earlier.
3 The IBGE states that household consumption represents 60% of GDP. This percentage was used to formulate the LCA estimate.
4 Target Marketing 2010 for the categories Apparel, Footwear, Other expenses with apparel and 12% of the category Furniture and Housewares
(to consider bed, bath and linen, in accordance with the percentage share of the last Family Budget Survey - POF).
5 IBGE's Monthly Retail Report (PMC) for November 2010. Classes of fabrics, apparel and footwear. Both Sales Volume and Nominal Revenue
result from the gross revenue investigated by the survey. Nominal revenue considers also the deflation of the nominal values by the specific price
indexes for each business activity.
\\ Potential of the Brazilian market – Cities
Brazil has 5,565 municipalities, of which 309 have population of more than 90,000,
representing 71% of the consumption potential.
Municipalities by occupancy range
Potential consumption
309
R$ 82 billion
71%
R$ 33 billion
29%
5,256
Above 90,000 - "Eligible"
Source: IBGE.
Up to 90,000 - "Not Eligible"
Above 90,000 - "Eligible"
Up to 90,000 - "Not Eligible"
\\ Income Classes
220
198
29.4
32.2
34.8
98.4
107.3
114.7
26.9
27.9
28.7
34.9
30.6
26.6
2008
2013E
2018E
Million of People
179
165
110
55
20.7
76.1
27.7
54.5
0
2003
Class E
Source: Ágora
204,8
189,6
Class D
Class C
Classes A and B
Guararapes’
Focus
\\ Higher Income Levels – Northeast (Per-capita GDP in R$)
Northeast
$ 8,378
+136.7%
$ 6,581
$ 3,540
Brazil
2000
2005
2008
$ 15,990
+132.2%
$ 11,658
$ 6,886
Source: IBGE/BNB.
1 Guararapes Group
2 Expansion Plan
3 Midway Financeira
4 Real Estate
5 Macroeconomic Indicators
6 3Q10 Recap
\\ Midway Financeira
Riachuelo Card
 16.9 million cards issued by the end of September 2010
 ~45% active cards
Financial Services
 Interest-Bearing Sales
 Credit
Personal Loans
Easy Withdrawl
 Insurance with Prize Drawings
Unemployment
Personal Accident
Loss and Theft
Residential
 Assistance with Prize Drawings
Residential
Auto
Dental Health Care
 Branded Card (Visa and Mastercard) – 2010
\\ Average Tickets and Total Cards – Riachuelo Card
Average Ticket (R$)
+ 8.5%
+ 8.0%
+ 5.2%
+ 5.2%
Total Cards (MM)
+ 7.9%
+ 10.8%
\\ Sales Breakdown – Riachuelo Card
9M10
3Q10
Third-party
Cards 22.1%
Riachuelo
Card
53.2%
Cash 24.8%
Without Interest73.4%
Third-party
Cards 21.8%
With Interest25.7%
Cash 24.0%
Riachuelo
Card
54.2%
Revolving Credit0.9%
Cash 23.2%
With Interest26.2%
Revolving Credit1.0%
9M09
3Q09
Third-party
Cards 20.1%
Without Interest72.8%
Riachuelo
Card
56.7%
Without Interest76.7%
With Interest21.9%
Revolving Credit1.4%
Third-party
Cards 19.5
Cash 22.4%
Riachuelo
Card
58.2%
Without Interest76.5%
With Interest22.0%
Revolving Credit1.5%
\\ Financial Operations Performance
Loss Levels from Personal Loan and Riachuelo Card Operations
26.3%
25.6%
24.4%
21.1%
18.4%
20%
15.4%
13.1%
10%
9.1%
8.6%
9.5%
9.0%
7.0%
11.4%
5.9%
5.9%
6.5%
mar/10
jun/10
sep/10
0%
Dec/08
Mar-09
Jun-09
sep/09
dec/09
Riachuelo Card
EBITDA from Financial Operations
Gross Revenue
Financial Revenue from Interest-Bearing Sales, Fines & Timely Interest Payments
Revenue fromPersonal Loans and Revolving Credit
Revenue from Commissions on Financial Products
Financial Operation Revenue (Riachuelo)
Tax Expenses
Net Revenue
Costs
Credit Assignment Expenses (Funding)
Discounts on Loan Operations
Revenue from Registration and Collections Charges
Gross Profit
PDA Expenses
PDA Expenses (Riachuelo)
PDA Expenses
Financial Transaction Contribution Margin
General and Administrative Expenses
Administrative Expenses
Other Operating Expenses
Other Operating Income/Expenses
Revenue from Registration and Collection Fees
Other Operating Income
Profit Sharing
EBITDA from Financial Operations
% of Consolidated EBITDA
Personal Loan
3Q10
112,981
90,251
11,139
11,591
3Q09
Chg.(%)
62,640
80.4%
9M10
282,634
44,153
8,288
10,200
9M09
Chg.(%)
202,842 39.3%
146,886
51.0%
25,124
7.4%
30,831
9.6%
104.4%
221,842
34.4%
26,994
13.6%
33,798
14,863
n.m.
2,316
59,372 -96.1%
(6,511) (4,470) 45.7%
(16,832) (14,246) 18.2%
106,469
73,033
45.8% 268,118
247,969
8.1%
(25,109)
(3,415) 635.3%
(36,310)
(128)
(24,846)
(135)
(958)
(2,457)
-
(1,301)
(34,875)
(135)
-86.6%
911.3%
n.m.
(14,061) 158.2%
(9,456)
(4,604)
-
-86.2%
657.5%
n.m.
81,360
69,618
16.9% 231,807
233,908
-0.9%
(28,898) (28,412)
1.7%
(46,486) (123,533) -62.4%
(22)
(28,877)
8,973
(37,385)
n.m.
-22.8%
22,738
(69,223)
(28,988)
n.m.
(94,545) -26.8%
52,462
41,206
27.3% 185,321
110,375
67.9%
(25,654) (22,327) 14.9% (79,075) (49,187) 60.8%
(16,629)
(9,025)
(19,901)
(2,426)
-16.4%
272.1%
(64,368)
(14,707)
1,273
3,372
-62.3%
1,704
110
(541)
28,080
1,814
1,558
-
22,252
-6.1%
-93.0%
n.m.
26.2%
110,373
77,958
23.7%
21.1%
2.6 p.p.
32.6%
29.9%
4,127
5,262
170
(1,305)
(41,842) 53.8%
(7,345) 100.2%
16,770
-75.4%
6,462
-18.6%
10,460
-98.4%
(152) 760.7%
41.6%
2.6 p.p.
\\ Financial Products
Financed Sales (0 + 8 monthly installments)
Information
Average Ticket:
40% higher than the Average Ticket from 0+5 sales
Percentage of Sales:
14.2% of 9M10 sales (13.3% in 2009)
Interest:
6.9% p.m. + IOF
( - ) Cost of funding
( - ) Taxes (ISS, PIS, COFINS)
Revenue Recognition:
During the term of the agreement, net of funding and taxes
Provision for Losses:
PDA according to the Central Bank of Brazil
Operational Risk:
Midway Financeira
\\ Financial Products
Personal Loans
Information
Products:
Personal Loans, Saque Fácil cash withdrawals and Personal Loans Guaranteed
by Checks
Amounts:
Personal Loans: between R$ 150.00 and R$ 5,000.00
Saque Fácil: between R$ 50.00 and R$ 450.00
Personal Loans Guaranteed by Checks: between R$ 150.00 and R$ 5,000.00
Repayment Term:
Personal Loans: between 3 and 12 months
Saque Fácil: between 3 and 12 months
Personal Loans Guaranteed by Checks: between 3 and 12 months
Interest:
Personal Loans: between 8.9% p.m. and 12.9% p.m.
Saque Fácil: 12% p.m.
Personal Loans Guaranteed by Checks: between 6.9% p.m. and 10.9% p.m.
Revenue Recognition:
During the term of the agreement, net of funding and taxes
Portfolio Size:
R$ 38.8 million at present value (9M10)
Provision for Losses:
PDA according to the Central Bank of Brazil
Operational Risk:
Midway Financeira
\\ Market Performance in the Card Segment
Market Share in Brazil
• 612.5 million of
cards*
• 44.7 billions in
monthly revenue*
7%
Chains
24%
Credit
• 580.6 million in
transactions*
Debit
41%
Debit
Store
Credit
28%
Store
Source: Boanerges & Cia. Consultoria em Varejo Financeiro (June/2010).
*Position in September, 2010.
Chains
\\ Market Performance in the Card Segment
Quantity
Transactions
700
8
628.0
600
7,1**
7
514.0
5.3
6
500
400
5
336.2
4
300
200
3.1
3
183.1
118.2
2
100
1.1
1.6
1
2000
2002
2005
2008
2010
2000
Number of Cards (R$ million)
2002
600
534,7**
500
375.3
400
300
100
199.5
65.4
103.4
0
2000
2002
2005
2008
Annual revenue (R$ billion)
Source: Abecs.
** Estimate
2008
Number of Transactions (R$ billion)
Revenue
200
2005
2010
2010
1 Guararapes Group
2 Expansion Plan
3 Midway Financeira
4 Real Estate
5 Macroeconomic Indicators
6 3Q10 Recap
\\ Midway: Overview
Current gross leasable area

Three levels with 270 stores
(GLA): 231,000 m²

Seven movie theatres, with one in 3D

Total GLA: ~ 67,000 m²


99% of area leased
Inauguration of the Riachuelo Theatre,
with investment of ~R$50 MM

Riachuelo Theater
\\ Real Estate
Midway Results (R$ thousand)
3Q10
3Q09
Rental and Key Money Net Revenue (R$ '000)
8,714.4
8,022.2
EBITDA (R$ '000)
EBITDA Margin
7,907.5 7,361.4
7.4%
90.7% 91.8% -1.0 p.p.
65.7
56.6
16.0%
120.4
130.1
-7.4%
GLA (thousand m²)
2
EBITDA/GLA (R$/m
)
Chg.(%)
8.6%
9M10
9M09
23,849.7
22,392.3
6.5%
21,809.1 20,220.9
7.9%
91.4%
90.3% 1.1 p.p.
65.7
56.6
16.0%
332.0
357.3
-7.1%
Quantity
(%)
46
37%
Mall Stores
8
6%
Street Stores
38
31%
Rented Stores
78
63%
Mall Stores
75
60%
Street Stores
3
2%
Total Stores
124
100%
Own Stores
Chg.(%)
1 Guararapes Group
2 Expansion Plan
3 Midway Financeira
4 Real Estate
5 Macroeconomic Indicators
6 3Q10 Recap
Employment Rate
\\ Employment and Expenses
23.4
23.3
23.4
23.5
23.5
23.6
23.5
23.7
23.7
23.8
23.8
23.8
23.7
7.4%
6.8%
7.2%
7.4%
7.6%
7.3%
7.5%
7.0%
6.9%
6.7%
6.2%
6.1%
5.7%
dec/09 jan/10 feb/10 mar/10 apr/10 may/10 jun/10 jul/10 aug/10 sep/10 out/10 nov/10 dec/10
Breakdown of Family
Spending in Brazil
Employed
Household
35.5%
Unemployed
Other
13.4%
Clothing
5.7%
Transport
18.4%
Education
4.1%
Food and Personal Care
22.9%
Northeast = 6.8 %
Source: IBGE and IBGE Household Survey
\\ Consumer Confidence Index
114.1
116.4
Dec-09
Jan-10
117.4
126.2
117.0
123.1
124.2
113.0
115.3
122.5
112.3
120.4
111.0
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Consumer Conf idence Index
Source: FGV
\\ Trajectory of Net Job Creation in Brazil¹
300
266
253
213
100
247
(Thousands of People)
119
35
(100)
(300)
(415)
(500)
(700)
(655)
¹New hires in the month, less terminations .
Source: Caged - Ministry of Labor website
(408)
\\ Average recurring real income of the employed
population (R$) and delinquency rate.
1,796
1,523
1,454
1,456
1,444
1,447
1,480
5.7%
6.0%
5.6%
1,499
1,525
1,532
1,528
1,580
6.2%
6.0%
5.9%
1,465
5.6%
5.8%
6.0%
5.7%
4.5%
4.6%
4.2%
Average recurring real income of the employed population
Delinquency Rate %
Source: Banco Central
\\ Retail sales volume index – Brazil¹
260.00
240.00
220.00
200.00
180.00
160.00
140.00
120.00
100.00
80.00
Real Retail Sales – Textiles, apparel and footwear
(Volume in Thousands)
¹ Gross sales revenue deflated by specific price indexes for each state based on relative prices of the IPCA price index.
Source: Banco Central
\\ Stock of credit in the financial system and
Loan/GDP ratio.
46.6
46.3
45.9
45.4
Bilhões de R$
45.1
44.4
44.6
44.2
44.1
44.6
44.3
44.0
44.0
1,583 1,613 1,645 1,677 1,704
1,414 1,425 1,436 1,452 1,468 1,499 1,529 1,548
Stock of Credit (R$ billion)
Source: Banco Central
% Loan/GDP ratio
\\ Credit Cards and Cleared Checks.
Credit Cards (Quantity in R$ million)
Cleared Checks(Quantity in R$ million)
dez-10
628
nov-10
623
out-10
618
set-10
612
ago-10
607
jul-10
602
jun-10
597
mai-10
592
abr-10
587
mar-10
581
fev-10
576
jan-10
dez-09
Source: Banco Central
571
565
dez-10
97
nov-10
out-10
95
90
set-10
91
ago-10
95
jul-10
92
jun-10
92
mai-10
94
abr-10
93
mar-10
fev-10
jan-10
dez-09
104
87
91
106
\\ Traded Volume (in R$ thousand)
3,133
2,811
2,884
2,489
2,352
1,486
1,460
1,425
1,056
1,022
957
787
748
Dec/09
Source: Bloomberg
Jan/10
Feb/10
Mar/10
Apr/10
May/10
Jun/10
Jul/10
Aug/10
Sep/10
Oct/10
Nov/10
Dec/10
\\ Performance of Shares
Year - 2010
IBOV X GUAR3
GUAR3
Value: R$/ share (Base 100)
R$80.7
+ 15.4%
IBOV :
-1.1%
GUAR3 : +15.4%
IBOV 69304.8
-1.1%
Initial Value
(01/04/2010)
Final Value
(12/31/2010)
IBOV : 70045.1
IBOV : 69304.8
GUAR3 : R$69.9
GUAR3 : R$80.7
IBOV
Source: Bloomberg
GUAR3
\\ Cotton Price in New York
Cotton in NY - Monthly
180
170.82
160
140
120
100
Feb 2010 X Feb 2011
Chg: +113%
Feb 2009 X Feb 2010
Chg: +100%
80
60
40
* Raw Material represents 13% of the sales price
Source: Bloomberg and Valor Data. *Mercado Futuro, position on February 7th.
Cotton in NY - US$
cents/Libra
\\ Cotton Price in New York
Cotton in NY - Daily
175
170.82
170
165
160
155
150
Cotton in NY - US$
cents/Libra
Jan 18 X Feb 7
Chg: +22%
145
140
Jan 18 - 2011
Feb 7 - 2011
* Raw Material represents 13% of the sales price
Source: Bloomberg and Valor Data. *Mercado Futuro, position on February 7th.
1 Guararapes Group
2 Expansion Plan
3 Midway Financeira
4 Real Estate
5 Macroeconomic Indicators
6 3Q10 Recap
\\ Operating Data
Operating Data
Consolidated Net Revenue (R$ MM)
Riachuelo's Net Revenue (R$ MM)
All-store nominal growth over the previous year
Same-store nominal growth over the previous year
Number of stores under remodeling in the Period
Total number of stores at the end of the period
Sales area in thousand m² at end of the period
Net revenue per m² (R$ per m²)
Net revenue per average sales area in the period
Average Ticket of the Riachuelo Card (R$)
Total number of Riachuelo Cards (MM)
% of total sales using the Riachuelo Card
% of sales through interest-bearing plans (0+8)
Total Net Personal Loan Portfolio (R$ MM)
3Q10
3Q09
Chg.(%)
9M10
9M09
Chg.(%)
629.5
519.7
15.0%
8.4%
519.3
451.9
9.6%
5.0%
21.2%
15.0%
5.4 p.p.
3.4 p.p.
1,691.5
1,403.3
14.7%
8.7%
1,438.9
1,223.8
5.6%
1.7%
17.6%
14.7%
9.1 p.p.
7.0 p.p.
0
114
293.3
2
104
270.3
9.6%
8.5%
0
114
293.3
4
104
270.3
9.6%
8.5%
1,786.6
1,677.1
6.5%
4,915.2
4,649.7
5.7%
111.3
16.9
53.2%
13.7%
36.2
102.6
15.3
56.7%
12.4%
38.8
8.5%
10.8%
-3.6 p.p.
1.2 p.p.
-6.8%
110.8
16.9
54.2%
14.2%
36.2
102.6
15.3
58.2%
12.8%
38.8
8.0%
10.8%
-4.0 p.p.
1.4 p.p.
-6.8%
39,834
34,335
16.0%
39,834
34,335
16.0%
Number of employees
Guararapes + Riachuelo + TCV + Midway Mall
\\ Net Revenue
Consolidated Net Revenue (R$ MM)
+17.6%
+21.2%
+ 10.3%
+ 8.7%
Midway Financeira (R$ MM)
Midway Mall (R$ MM)
+8.6%
+71.2%
+ 41.4%
+ 231.2%
\\ Consolidated Gross Profit
+22.7%
+27.5%
+26.2%
+17.4%
Gross Profit (R$MM)
Consolidated Gross Margin
Gross Margin of Products
\\ Operating Expenses
Expenses excluding Provision for Doubtful Accounts and Depreciation (R$ MM)
+21.0%
+ 4.9%
+19.0%
+ 3.5%
Expenses excluding PDA & Depreciation
Operating Expenses per
m² (R$ MM)
CAGR:
0.79%
+ 1.6%
- 8.1%
+ 10.5%
% Net Revenue
\\ EBITDA
EBITDA Reconciliation (R$ thousand)
3Q10
3Q09
9M10
9M09
Gross Profit
356,971
280,029
27.5%
980,995
799,423
22.7%
(-) Selling Expenses
(177,135)
(159,134)
11.3%
(470,665)
(495,481)
-5.0%
(95,514)
(76,737)
24.5%
(268,177)
(210,927)
27.1%
(-) Administrative Expenses
(+) Other Operating Income/Expenses
EBIT
(+) Depreciation and Amortization
EBITDA
EBITDA Margin
EBITDA margin on revenue from products
(R$ Thousand)
EBITDA
9,894
n.m.
(4,224)
9,001
n.m.
-
14,863
n.m.
2,316
59,372
-96.1%
9,926
12,074
-17.8%
23,850
24,498
-2.6%
93,081
80,990
14.9%
264,095
185,886
42.1%
25,454
24,366
4.5%
74,987
74,526
0.6%
118,534
105,356
12.5%
339,082
260,411
30.2%
18.8%
20.3%
-1.5 p.p.
20.0%
18.1%
1.9 p.p.
22.8%
23.3%
-0.5 p.p.
24.2%
21.3%
2.9 p.p.
3Q10
3Q09
118,534
105,356
(-) Non-recurring item (Other Oper Inc/Exp)
118,534
Adjusted EBITDA
18.8%
EBITDA Margin
EBITDA margin on revenue from products
Chg. (%)
(1,167)
(+) Financial Service Revenues
(+) IR Tax Benefits
Chg. (%)
22.8%
(9,444)
Chg. (%)
12.5%
n.m.
9M10
9M09
339,082
260,411
-
(9,444)
Chg. (%)
30.2%
n.m.
95,912
23.6%
339,082
250,967
35.1%
18.5%
0.3 p.p.
20.0%
17.4%
2.6 p.p.
21.2%
1.6 p.p.
24.2%
20.5%
3.7 p.p.
\\ Consolidated Net Income
+54.5%
+23.1%
+38.1%
+111.4%
Net Income (R$MM)
Net Margin
Net Margin on revenue from Products
(R$ Thousand)
3Q10
3Q09 Chg. (%) 9M10
9M09 Chg. (%)
63,737 51,793
23.1% 174,274 112,833
54.5%
(9,444)
n.m.
(9,444)
n.m.
(-) Non-recurring item (Other Oper Inc/Exp)
(1,090)
n.m.
(1,090)
n.m.
(-) Non-recurring item (Financial Inc/Exp)
Adjusted Net Income
63,737 41,259
54.5% 174,274 102,299 70.4%
Net Margin
Net margin on revenue from products
10.1%
12.3%
7.9%
9.1%
2.2 p.p.
3.1 p.p.
10.3%
12.4%
7.1%
8.4%
3.2 p.p.
4.1 p.p.
\\ Capex 9M10
Total R$ 111.9 million
\\ Employees
+16.0%
-1.2%
39,834
34,766
34,335
13,685
12,993
14,289
+ 19.7%
+1.2%
25,545
21,342
21,081
sep/08
sep/09
Riachuelo
Guararapes
*includes Midway Mall, Midway Financeira and Transportadora Casa Verde.
sep/10
\\ Contacts
Flávio Rocha
CEO and Investor Relations Officer
Guararapes Confecções S.A
Tulio Queiroz
Rua Leão XIII, 500
Controller and IR
[email protected]
São Paulo – SP - Brazil
CEP 02526-900
www.riachuelo.com.br/ri
Investor Relations Team
Tel. + 55 (11) 2971-7420
This presentation contains forward-looking statements relating to the
prospects of the business, estimates for operating and financial results,
and those related to growth outlook of Guararapes - Riachuelo. These
statements are merely forecasts and as such are based exclusively on the
expectations of Guararapes - Riachuelo’s management concerning the
future of the business and its continuous access to capital to finance the
Company’s business plan. These forward-looking statements depend
substantially on changes in market conditions, government regulations,
competitive pressures, the performance of the Brazilian and international
economies and the industry, among other factors, as well as the risks
presented in the documents filed by Guararapes – Riachuelo, and are
therefore subject to change without prior notice.