Magazine Luiza S.a. · BMFBOVESPA:MGLU3
Magazine Luiza — Q2 2024 Earnings Presentation
23 slides from Magazine Luiza's earnings presentation, Aug 9, 2024
Slide 1: Conference Call 2Q24
Conference Call 2Q24 August 9 , 2024
Slide 2: Simultaneous translation and download information
Esta teleconferência possui tradução simultânea. Para acessar, basta clicar no botão Interpretação através do ícone do globo na parte inferior da tela. O Release de Resultados e a Apresentação, versões português e inglês, estão disponíveis para download no site de RI: ri.magazineluiza.com.br A apres
Slide 3: 2Q24: Adjusted EBITDA grew 62%, reaching 7.9% margin
2Q24: Adjusted EBITDA grew 62%, reaching 7.9% of margin (+2.8p.p.), 25% decrease in financial expenses and R$37 million of adjusted net income Adjusted EBITDA margin [% of net revenue] +62% 711 R$ 37 million +2.8p.p. 7.9% of Adjusted Net 7.4% 440 7.2% Income in 2Q24 (Evolution of R$398 million in 5.7
Slide 4: 2Q24: gross margin increase, Luizacred net income, short-term debt payment
2Q24: 2.1 p.p. increase in gross margin, net income of R$71 million in Luizacred, and payment of short-term debts Gross Margin Evolution Net Income of Luizacred Short-term debt (%) (Million R$) (Billion R$) Apr/24: payment 30.9% of promissory +2.1p.p. 3.0 28.8% 71 notes totaling R$2.1 billion 2.3 23
Slide 5: Total Sales of R$15.4 billion in 2Q24, with 4% growth
Total Sales of R$15.4 billion in 2Q24, with 4% growth Total sales growth [Billion R$; %] Online Physical stores +60% +1% +6% +4% 15.4 +4% Growth of Total Sales 14.7 [2Q24 vs 2Q23] 13.7 13.9 70% 73% 8.6 72% 72% 30.9% Gross Margin 78% [+2.1 p.p. vs 2Q23] 2Q20 2Q21 2Q22 2Q23 2Q24 5
Slide 6: Physical stores sales reaching R$4.6 billion in 2Q24
Magalu continues to gain market share in physical stores, reaching sales of R$ 4.6 billion in 2Q24 Growth of physical stores sales [Billion R$; %] +112% 0% +3% +14% 16% Same Store Sales Growth [2Q24 - 2Q23] 4.6 4.0 3.9 3.9 14% Total Sales Growth [2Q24 - 2Q23] 1.8 + 1 6% Regions with the highest grow
Slide 7: E-commerce sales reached R$10.8 billion in 2Q24
E-commerce sales reached R$10.8 billion in 2Q24 Growth of e-commerce sales [Billion R$; %] 1P 3P Marketplace: +46% +2% 7% 1% 10.8 4% Growth in 3P [2Q24 - 2Q23] 10.7 9.8 10.0 40% Share [2Q24] of 3P in online sales 6.7 1P: quarterly focus on increasing operational margins 36% 3639% 40% % 27% 30% 3 p.p
Slide 8: Truly multichannel fulfillment, wide variety of products, high service level
Truly multichannel fulfillment, with a wide variety of products, and high level of service Composition of fulfillment orders by category (2Q24) +21% of +3,300 95% of Level Homewear 3P orders sellers of service Home and Garden Small Appliances Kitchen Accessories Fashion Home, Table, and Bath Tools Per
Slide 9: New version of Lu: AI and graphic improvements
New version of Lu: AI and graphic improvements enhance customer connection and revenue opportunities Advertisers are increasing on the platform +40% 3.7k 430M Platform Active advertisers (sellers and monthly visits revenue [jun/24] [2Q24 vs 2Q23] brands) Lu received an update that made her even more
Slide 10: MagaluBank: multichannel offering of financial products
MagaluBank: multichannel offering of financial products for customers and sellers, as well as payment services for the entire ecosystem Highlight +R$23 Bi Launch of the Digital CDC ● Fully integrated with the App Total TPV in 2Q24 ● Personalized interest rates ● Online application and management thro
Slide 11: Magalu Enchants: Strong improvement in NPS
Magalu Enchants: Strong improvement in NPS, with improvements across all channels Consolidated NPS - jul/24 Continuous improvement in customer experience 78 ● 31% Growth in self-service attendance +11 ● 32% Reduction in contact rate regarding orders points ● Over 80% resolution on First Contact 67 ●
Slide 12: Financial Highlights
Financial Highlights
Slide 13: Financial Highlights 2Q24
Financial Highlights 2Q24 R$15.4 Billion in Total Sales (4% of growth) 30.9% Gross Margin (vs 28.8% of margin in 2Q23) 14% Growth in Physical Store Sales (16% SSS) R$711 Million in Adjusted EBITDA (7.9% of margin) 4% Growth in Marketplace R$37 Million in Adjusted Net Income (0.4% of margin) Billion
Slide 14: Summary of Non-Recurring Events
Summary of Non-Recurring Events (in R$ million) 2Q24 Reevaluation of the methodology for excluding ICMS from the Tax Credits 163.4 PIS/COFINS calculation base Provision for ICMS – DIFAL (R$142.9 million at the parent Tax Provisions (204.2) company and R$61.3 million at the subsidiaries) Other Expens
Slide 15: Continuous evolution of operating margins
Continuous evolution of operating margins Adjusted EBITDA Margin of 7.9%, the highest margin since 2019 Adjusted EBITDA Margin Key Levers [% of net revenue] 7.9% ● Marketplace Growth and increased +2.8pp Service Revenue (+11% vs 2Q23) 7.4% 7.2% ● Increase in Gross Merchandise Margin and DIFAL pass-t
Slide 16: Significant adjusted EBITDA margin evolution
Significant adjusted EBITDA margin evolution 2.8 p.p. increase in adjusted EBITDA margin, 2,1 p.p. in gross margin 0.6% 0.2% 2.1% 0.1% 0.0% 30.9% 28.8% 7.9% 23.2% 5.1% 21.4% 2Q23 2Q24 Gross Margin on Gross Margin on Total Gross Merchandise Services Margin 2Q23 Gross SG&A Equity in 2Q24 PDD Others Adj
Slide 17: Evolution of R$1.0 billion in Working Capital; 25% decrease in financial expenses
Evolution of R$1.0 billion in Working Capital during the past 12 months 25% decrease in financial expenses in 2Q24 Adjusted working capital (R$ Billion) Adjusted net financial expense (R$ Million) CDI 13.8% 13.3% 12.2% 11.2% 10.5% R$1.0 bi medium 2.8 2.3 2.1 2.0 6.2% 1.0 5.3% 4.1% 4.5% 4.1% 532 456 43
Slide 18: Operational cash generation of R$2.2 billion over last 12 months
Operational cash generation of R$2.2 billion over the last 12 months, with a R$1.1 billion increase in net cash Cash flow from operations Net cash evolution, including receivables (12 months ; R$ Bi) (R$ Bi) +R$1.1 Bi 2.2 2.0 0.8x 0.9 0.8 EBITDA 0.4x EBITDA 2.0 (1.4) 0.9 Jul/19- Jul/20- Jul/21- Jul/2
Slide 19: Net cash of R$2.0 billion; short-term debts paid off
We ended 2Q24 with a net cash of 2.0 billion, an increase of R$1.1 billion compared to the previous year In Apr/24, we paid off our short-term debts Debt reduction (R$ Bi) Net cash position (R$ Bi) April 2024: Payment of promissory notes totaling R$2.1 billion Short-term Long-Term 6.5 -0.9 7.4 2.0 -
Slide 20: Luizacred credit card TPV and credit portfolio
Luizacred Credit card TPV reached R$14.4 billion and credit portfolio amounted to R$19.3 billion in 2Q24 Percent of the Portfolio Overdue (%) Net Income 10.9% [R$ milhões] 71 9.4% 9.2% +R$137Mi 3.5% 18 13 3.4% 2Q23 3Q23 3.0% 4Q23 1Q24 2Q24 (15) Jun-23 Mar-24 Jun-24 3º consecutive quarter of 139% 148
Slide 21: Strategic partnership between Magalu and Alibaba
Strategic partnership between Magalu and Alibaba will expand the assortment and audience of both platforms in Brazil Products from Alibaba's "Choice" line will also be sold in Brazil through Magalu Magalu's 1P products will be sold through AliExpress Brazil AliExpress orders made through Magalu will
Slide 22: Ecossistema Magalu
: Ecossistema _ Magalu : ce VIP ene? e magau Lbbes a0, & mMagatu cLoud magauy hub ° mMagatu pagamentos SOQ FE Schoot ; SmartHint) @yuess_es LUIZACRED ‘Chea “bits < Magatu a Entregas £ BODE jetshoes Cal (cr) Canaltech 2, 2 ~ KabuM.. STEAL oe aiqrome LOOK GFLA ZATTINI M estan §Sinclog GED
Slide 23: Investor Relations
INVESTOR RELATIONS RI@MAGAZINELUIZA.COM.BR MAGAZINELUIZA.COM.BR/RI As afirmações contidas neste documento relacionadas a perspectivas sobre os negócios, projeções sobre resultados operacionais e financeiros e aquelas relacionadas a perspectivas de crescimento do Magazine Luiza são meramente projeções