Companhia Brasileira De Distribuicao · BMFBOVESPA:PCAR3
Companhia Brasileira De Distribuicao — Brazilian Distribution Co Companhia Brasileira DE Distr CBD — Investor Day (May 2008)
58 slides from Companhia Brasileira De Distribuicao's investor day presentation, May 15, 2008
Slide 1: GPA Day 2008
i »| 2008 gi Ot GrupoPao de Acucar 60
Slide 2: To be the best company in the Brazilian retail market
- To be the best Company in the B raz il ian retail market « Gross Sales above R$ 27 billion + EBITDA Margin: above 8%
Slide 3: Slide 3
Slide 4: Maximization of Current Assets
Maximization of Current Assets: ‘Same-Store Sales Growth Efficiency Gains Gross Sales R$ 17.6 billion above R$ 20 billion ‘Same Store Sales Growth 2.8% Above 6.5% Gross Margin® 28.0% 26.5%-27% Operating Expenses”) 21.1% 19.0% EBITDA’ 6.9% 7.5%-8.0% Indebtedness (Net DebUEBITDA) 4.25 below 1.0x Inves
Slide 5: Drivers 2008 Guidance
Drivers 2008 Guidance . 2008 =| Complementary Assortment Communication| Businesses
Slide 6: Drivers
Drivers 2008 Communication Constumer ‘Support Service Service = _
Slide 7: Slide 7
Slide 8: Commercial / Operations
Commercial / Op Pio de Agiicar compreBend = Sendas Supermarkets Extra Extra Facil ‘Commercial/ Operations Regional Office ‘Commerc ial communication Aoi _ Private Marketing Knowiedge Label a7. a-S:t=“‘i‘™SCS
Slide 9: Commercial Operations
‘Commercial Operations RJ — ‘Commercial Operations Northeast — ‘Commercial / ‘Operations Midwest — ‘SPIPR Region MKT ‘Assortment RJ Result Northeast Result Midwest Result SPIPR Result Communication * ‘consumer Knowledge Positioning and Result
Slide 10: Clustering
Clustering Geographic Region = Based on the analysis of geographic ¥ —e regions and socio-economic profiles, we strategically defined clusters with different store sizes. * Based on the defined clusters, we adjusted assortment, pricing and communication to our customers needs. Socio-economic Profile
Slide 11: Slide 11
Slide 12: Slide 12
Slide 13: Positioning: cost-benefit
Positioning: cost-benefit a Poona and wet bg a ee = ae ce Cl a AaQveAGUCAn - ‘Adult Fashion Tnfant fashion Premium and imported products Kids fashion (boys & girls) Prochucton of ngerl and home oe =
Slide 14: Pricing
Pricing Improving Competitiveness (strategic pricing) Weekly price survey “Previously Currently. — 1300 Fr 1200 — a _— U Differential
Slide 15: Slide 15
Slide 16: Customer-aimed pricing strategy
Customer-aimed pricing strategy Coca-Cola Light 6oomL Price: $1.09 a mt = \ Volume: 100 SS. & i 8B Price: $1.69 DemandTec pricing tool Entrance Market Rules Strategy Price Impact Analysis (Elasticity)
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Slide 18: Gross Profit jumped 15.7% and gross margin moved up
Gross Profit jumped 15.7% and the Gross margin moved up 200 bps; Operating expenses fell by a hefty 330 bps over 1Q07; EBITDA margin of 7.1% is the highest ever figure; EBITDA growth of 310.3%.
Slide 19: Commercial / Operations Administrative Structure
Commercial / Operations Administrative Structure % of total sales
Slide 20: Business Model based on Management Independency
Business Model based on Management Independency responsible for regional results —, throughout the system
Slide 21: People
People OPERATING EFFICIENCY Perishable Technique Training Check-out Training Prevention of Losses. ‘Training of new Leadership (expansion) ‘Training of Store Leadership in Personnel Management, Results, and Store Operations, LEADERSHIP QUALIFIED ‘AND DEDICATED PEOPLE COSTUMER SERVICE Customer servic
Slide 22: 2008 Main Training Indicators
2008 Main Training Indicators e\ humberosessions 30,000 Hours 980,000 Investment 15 million On average, each employee will participate in two training sessions
Slide 23: Why is small-scale retail we
Why is small-scale retail we Proximity / Location “Right” Assortment Personal Approach ag A
Slide 24: GPA convenience stores
GPA convenience s GPA Proximity Stores Convenience “Having a Store close te the ‘customer, that offers a convenient and pleasant shopping experience, with essential everyday products and services, and with a clear perception of the price-quallity correlation”
Slide 25: Store models: Neighborhood, High Pedestrian Traffic and Gas Station
We have 3 store models: Neighborhood, High Pedestrian Traffic | and Gas Stat 2008 crpereiercce OO STORE Models Targeted to classes A and B UI 7109 employees aoe Targeted to classes Proximity cD Gales area of between 200 and 250m Stores Neighborhood 7 to 9 employees Targeted to classes A, B, C and D
Slide 26: Overview
Overview
Slide 27: Perishables
Perishables 1 os Go
Slide 28: Front View — Inhambu Store 2008
Front View — Inhambu Store 2008
Slide 29: 2008 Expansion Plan
2008 Expansion Plan 2008 Number of stores in 2007 19 Expansion Plan 60 new stores in 2008
Slide 30: This market will grow 3.7 times from 2005
This market will grow 3.7 times from 2005 2008 Source: e-Bit In the first four months of 2008 we posted 230% growth relative to 2007
Slide 31: Extra.com.br
VALE COMO DOCUMENTO DE IDENTIDADE E TEM Fé PUBLICA EXTRA.COM.BR GRUPO PAO DE ACUCAR a extfa.com.br DHPRESSAO DIGITAL, LEIS NO Ta TET
Slide 32: All the confidence of Extra, without leaving home
All the confidence of Extra, without leaving home.
Slide 33: Times higher than Morumbi Mall
3 times higher than Morumbi Mall
Slide 34: derde
derde 194
Slide 35: Our decision was for 2008: Wholesale
Our decision was for 2008 Wholesale
Slide 36: Our decision was for wholesale
Our decision was for Wholesale for food product resellers Format complements our positioning Es Rs
Slide 37: Assaí Santo André and Sapopemba
Assai Santo André (rormety Pao de Agiicar) Average growth over the last four months: + 442% Assai Sapopemba (formety comprebem) Average growth over the last two months: + 483%
Slide 38: Gas Stations
Gas Stations iB
Slide 39: GPA Gas Stations
GPA Gas Stations + GPAcurrentty has 68 gas stations in ‘operation and 7 under construction + Objective is to add gas stations to all Extra and Assai locations. + Acquisitions of independent gas chains are under analysis for possible synergies with Extra Facil and drugstores
Slide 40: Attract customers that already shop at our stores
Attract customers that already shop at our stores; Focus on prices and products quality assurance; High productivity rates -> shop, fill-up and go; Profitability related to high turnover and smaller margins than with traditional reselling.
Slide 41: Drug Stores
Drug Stores mone}
Slide 42: Largest drugstore chains
CHAIN STORES PRESENCE 2007 SALES* SÃO PAULO SP /BA/PE/CE 1.2 PAGUE MENOS 19 States 1.3 PACHECO RJ / MG 1.1 DROGASIL SP/MG/GO 0.8 DROGARAIA SP/MG/RJ/PR 0.7 1,723 7.2 Largest Chains * estimate
Slide 43: Brazil figures in the drugstore market
Brazil figures tis the 3" amongthe 19 highest (ENgeS spending in consumers of Brazilian medications families (Food ‘wisiliets and Home being 1 and 2") We already register 520 million tickets per year Great growth Drugstore potential: 40% chains account of the Brazilian for only 35% population of sal
Slide 44: Supply Chain
Supply Chain New Businesses Logistical Distribution Prevention of Losses Business Center Global Sourcing ‘Support Servi
Slide 45: GPA Logistical Operations
GPA Logistical Operations BB 100% of our Fleet monitored 700,000 store and tracked deliveries per year 450,000 residential doliveries per year 570 million
Slide 46: The challenge established by the future vision for the GPA supply chain
The challenge established by the future vision for the GPA supply chain represents a significant step change oe for growth in mats (Ext Business Centers) Profile Supply Logistics | Change Chain of investments: + Technology to improve data accuracy, Greater integration and partnership with NMS and TM
Slide 47: IT Systems: Where we're at, where we're going
IT Systems Where we’re | Where we’re at. going... cogent OO Internat developed retail Detnton of Reta ERP systom in June of 2008 as sysiems mong the work's top supplers (SAP, Oracle and ‘Adata) Evolution of Extra,com’ technology platform in Bee SESE) ‘order to achieve R$ 1 billion revenue in 2010, A
Slide 48: Global Sourcing - 2007
Global Sourcing - 2007 Execute a global search for the best products at the lowest costs in order to generate an important competitive differential. 4 Import volume in 2007 reached se USD 129 million Export operations volume came to USD 34 million
Slide 49: Main products
Main products Non-Food Imports: Tires Office furniture (chairs) DVD Players Inflatable Mattresses
Slide 50: Improve synergies with Casino's Global Sourcing offices
Improve all synergies with Casino´s (EMC) Global Sourcing offices
Slide 51: Slide 51
Slide 52: Operating Expenses
Operating Expenses
Slide 53: Expenses Reduction
Expenses Reduction | & ‘Adequacy of administrative structure based on revision of internal processes Zero Base {approximately +300 executives) Budget Zero Base Budget nl / 2008 Expenses = 19% of Net Sales | nn SES
Slide 54: Monitoring Results
Monitoring Results Control panel - Banner/Regiofal/Drogstore/Gas Stations
Slide 55: Investments
Investments 14 wAssal Openings! Conversions "Strategie Sites Others ‘Support Service
Slide 56: New Corporate Structure
New Corporate Structure 23
Slide 57: New Commercial / Ops
New Commercial / Ops Support Service
Slide 58: Signatures
SIGNATURES Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO Date: May 15, 2008 By: /s/ Enéas César Pestana Neto Name: Enéas Cés
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