Companhia Brasileira De Distribuicao · BMFBOVESPA:PCAR3
Companhia Brasileira De Distribuicao — Brazilian Distribution Co Companhia Brasileira DE Distr CBD — Q2 2011 Earnings Presentation
25 slides from Companhia Brasileira De Distribuicao's earnings presentation, Jul 27, 2011
Slide 1: 2Q11 Results
2Q11 RESULTS Grupo Pao de Agticar and Globex Utilidades July 26, 2011 Warcmnmenen
Slide 2: 2Q11 Highlights
2Q11 HIGHLIGHTS Macroeconomic impact > IPCA12 months: +6.7% > GPA Food real growth: +2.3% > Increase in Selic! rate from 11.75% to 12.25% ENEAS PESTANA Performance in businesses > ‘Same-store’ growth: > GPA Food?: +9.3%, Globex?:+17.6% > Results: increase in marketshare, profitability with competiti
Slide 3: 2Q11 Highlights
2Q11 HIGHLIGHTS Capital Structure and Debt > Improved debt/EBITDA ratio > Same level of financial expenses People and Sustainability ENEAS PESTANA @ | > Turnover reduction $'| > Better customer service © | » improved employees’ satisfaction > GPA/AES Eletropaulo/AKATU: campaign of conscious consumpt
Slide 4: Agenda - 2Q11 Results
AGENDA - 2Q11 RESULTS swerna a 2 cash & Carry Hypermarket a fe) fs) ir rod co) Specialized Stores E-commerce 2 B eHub ELECTRONICS [eooroteer 201 88
Slide 5: GPA Consolidated in the 2Q11: Gross Sales of R$ 12.6 bn
GPA CONSOLIDATED IN THE 2Q11: GROSS SALES OF R$ 12.6 BN >GROSS SALES: R$ 12.6 bn + 61.3% vs. 2Q10 GPA Food!: Same-store growth of 9.1% in the 2Q11 Globex*: Same-store growth of 14.1% in the 2Q11 af >GROSS PROFIT: R$ 3.0 bn +82.8% vs. 2Q10 Margins: GPA Food!: 25.2% +40 bps vs. 2010 Globex?: 28.1% +13
Slide 6: Agenda - 2Q11 Results
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Slide 7: Gross Sales of R$ 6.9 bn, Same-Store Sales Increase 9.1% in the Quarter
GROSS SALES OF R$ 6.9 BN, SAME-STORE SALES INCREASE 9.1% IN THE QUARTER Gross Sales (RS mn) > Same-store growth (without Globex) > In the 2Q11, higher than the 2™ player for 3 years in a row > In the 1H11, +7.4%, the upward trend observed in previous quarters is maintained Same-store gro (without Gl
Slide 8: Gross Profit Climbs by 12.3%
GROSS PROFIT CLIMBS BY 12.3% Gross Profit (RS m (without Globex) oe Hottest > Margin expansion is related mainly to : > Product mix with higher margin General Merchani EULE Perishables Aligned with the strategy of ~<@% conversion to Extra 4 Supermercado, which allocates larger area for these categor
Slide 9: Operating Expenses of R$ 1.1 bn in the 2Q11
OPERATING EXPENSES OF RS 1.1 BN IN THE 2Q11 > Maintenance of the same level of operating expenses as a percentage of net sales in 2010 Creation of the Management Control with the administration of the expenses groups deAgicar 2011 Results >
Slide 10: EBITDA Margin of 6.7% in 2Q11
EBITDA MARGIN OF 6.7% IN 2Q11 EBITDA (RS mn) (without Globex) >The expansion reflects: > Increase in gross margin - greater sales of higher aggregated margin items > Expenses dilution - increase in a lower rate than sales and gross profit The reclassification of ‘Profit sharing’, which now impacts t
Slide 11: Net Financial Expense Keeps Representing 2.7% of Sales
NET FINANCIAL EXPENSE KEEPS REPRESENTING 2.7% OF SALES > Maintained level of 2.7% of net sales, despite the higher Selic rate Net Financial E without Globes) > Breakdown: > 1.1%: Charges on bank net debt (RS67.6 mn) > 0.6%: Charges of discounted receivables (RS34.3 mn) > 1.0%: Adjustment by CDI of o
Slide 12: Agenda - 2Q11 Results
AGENDA - 2Q11 RESULTS Specialized E-commerce (Sra [armas Pein (ere eos a YZ Zz fe} [= is) a 4 a Due to the consolidation of Casas Bahia’s results as of November, 2010, we use the 111 as a reference for better comparison. Expenses from “profit sharing”, previously recognized after “operating profit b
Slide 13: Globex 2Q11 Highlights
GLOBEX 2Q11 HIGHLIGHTS > Positive results of the integration process: v Commercial margin gains v Control of non-interest-bearing sales and increased RAPHAEL KLEIN interest-bearing sales v Maintenance of financial expense v Return of organic growth (12 new stores) The Company will consistently deliv
Slide 14: Globex 2Q11 Highlights
GLOBEX 2Q11 HIGHLIGHTS > Nova Pontocom (2Q11 vs 2Q10): > Sales': growth of 58.03 > 50% higher than the market growth Highlight for CasasBahia.com.br, 3-digit growth > EBITDA: growth above 50: > Margin between 6% and 7: > SAC 2.0 > Logistics 2020 @ obit ~— L@ ["epotiodercuar r0s\tensts "ite y QUIROGA
Slide 15: Net Sales of R$ 5.0 bn, Same-Store Climb by 17.6%
NET SALES OF RS 5.0 BN, SAME-STORE CLIMB BY 17.6% Net Revenus > Same-store growth vs. 2Q10: >Even vs.the period of World Cup (2Q10) >Control of non-interest-bearing sales and increased interest-bearing sales cess Bihan: HIGHLIGHTS ne | e-commerce *: ' 3 << *, | +8.1% SAME-STORE ——_ > +39.4% gross sa
Slide 16: Gross Profit of R$ 1.4 bn in the 2Q11, Margin of 28.1%
GROSS PROFIT OF RS 1.4 BN IN THE 2Q11, MARGIN OF 28.1% > Gains in commercial efficiency: r price policy ter commercial conditions ted with a better Reduction of logistics expenses : Result of the combination of two operations under a single structure
Slide 17: Operating Expenses Represented 23.7% of Net Sales in the 2Q11
OPERATING EXPENSES REPRESENTED 23.7% OF NET SALES IN THE 2Q11 > Maintenance of the expenses level > Impact of non-recurring items (RS 25.7 mn): > Software maintenance agreement, R$11.5 mn > Adjustment of benefits and charges RS10,0 mn > Adjustment of provisions for profit sharing, RS4.2 mn > Excludi
Slide 18: EBITDA in the 2Q11, with Margin of 4.4%
EBITDA OF R$ 222 MN IN THE 2Q11, WITH MARGIN OF 4.4% EBITDA in 2011: We reaffirm the margin guidance Reclassification of ‘profit sharing’, which starts to impact EBITDA, represents 0.6% of the margin 2011 EBITDA Margin > Advance in EBITDA margin guidance, now in IFRS basis, is equivalent to > Gross
Slide 19: Net Financial Expense Represented 3.4% of Net Sales
NET FINANCIAL EXPENSE REPRESENTED 3.4% OF NET SALES Net Fines > Maintenance of financial cual expenses level, even with the Selic increase in the period > Maintenance in the average payment period > Greater use of FIDC (Nova 3.4% Pontocom) > Increase in the share of interest bearing sales The financ
Slide 20: Agenda - 2Q11 Results
AGENDA - 2Q11 RESULTS swerna a 2 cash & Carry Hypermarket a fe) fs) ir rod co) Specialized - Stores BAHIA] E-commerce ELECTRONICS [eooroteer 201 98 SfeHub'= =)
Slide 21: FIC in 2Q11
FIC IN 2Q11 > Equity income result: R$ 2.7 mn in 2Q11 GPA Food: R$ (1.0) mn > Globex (Ponto Frio): R$ 3.7 mn The change into cards with chip generated RS9.2 mn (non-recurring) Globex interest-free sales represented in Mi voices ME Within the 2Q11 less than 50% of sales 1 The best credit tool: > Long
Slide 22: 2Q11 Consolidated Net Result
2Q11 CONSOLIDATED NET RESULT > Adjusted net income grows by 70.2%, totaling R$158 mn > Considering non-recurring effects with REFIS, adoption of IFRS and integration expenses > Operational strengthening and EBITDA margin advance in Food > Recovery of the Globex’s operation, which comes close to brea
Slide 23: Consolidated Net Debt
GRUPO PAO DE ACUCAR CONSOLIDATED NET DEBT Evolution of Consolidated Net gine [eduction on]net cept is Debt (a5 bn) associated with: > Reduction of debt in Globex’s operation > Debt level maintenance in GPA Food [Tnporaiedeuar 285 tots
Slide 24: 2Q11 Investments
2Q11 INVESTMENTS New stores and lands RS 21.7 mn Renovations and conversions RS 88.6 mn Infrastructure RS 95.4 mn 1H11: R$455.0 mn invested GPA FOOD New stores and lands: RS 10.5 ma Renovations and conversions: RS 17.9 mn | 12 new stores [lf = |12 conversions Gy] Infrastructure: > Fleet: RS 15.9 mn
Slide 25: 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: July 27, 2011 By: /s/ Enéas César Pestana Neto Name: Enéas Cé
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