Companhia Brasileira De Distribuicao · BMFBOVESPA:PCAR3
Companhia Brasileira De Distribuicao — Brazilian Distribution Co Companhia Brasileira DE Distr CBD — Presentation (April 2012)
53 slides from Companhia Brasileira De Distribuicao's investor presentation, Apr 12, 2012
Slide 1: Project Sendas: Economic Appraisal of the Sendas Group
Project Sendas Economic Appraisal of the Sendas Group
Slide 2: Cover letter to Grupo Pão de Açúcar
a pwe Confidential gus 232081 Attention: André Rizk and Fabio Capac Leone ‘Grupo Po de Asie ‘SioPaulo-SP Dear Sits PrcewaterhouscCoopers Corporate Finance & Recovery Lida, CPWC™ “Treompan headgunetered nthe Capital ofthe State of 0 Paul, au Avenida Franco Matarazzo, n® 1400, Tore Torino, Aga Banc, r
Slide 3: Index
Draft for deo, sajet tochange Index ‘Section ‘Overview = Sector ad Company Sections ‘tile 296 Bonomic Analysis Section ¢ Beonomi Appr Section got Buse Case Section $2 ‘Sensitinty Section $3 Discount te ” Section $4 ‘Condnsion Glossary suy2011 3
Slide 4: Executive Summary
t Section 1 Executive Summary Project Sens suiy2011 Pe zy
Slide 5: Executive Summary: Background
rat for denon, abet fever " Executive Summary i Background ‘GPAs the gest resilrin Latin America, focused onthe fod busines, ‘dothing. clecronies and eter products. ts stractre encompasses supermarket operations Pio de Agia, ‘Comprebem and Sendas), ypermarkets (Extra), electronics stores (Ponto Fro
Slide 6: Executive Summary: Scope and Purpose
rat for eso, sujet fever " Executive Summary 2, Scope and Purpose In thiscontxt, me were hired to prepare an economic analysis related toltem Io rte ag an Arh g6 Economic Anais) In ‘dition, the Administration asked uso prepare an ceonoms Finacial “appraisal of Sendas, toward analyzing the cconomie f
Slide 7: Executive Summary: Methodology and approach
rat for eso, sujet ‘change " Executive Summary ‘8.Methodology and approach (Cont) = Keonomie appraisal ‘Thefellowing procedures were card out analysis discussion ofthe projections fo the years after the tse date reading ofthe published or avilable market reports with respect 0 ‘Sendas sector faction
Slide 8: Executive Summary: Article 256 Analysis
rat for eso, sujet fever " Executive Summary ie Analysis (paragraphs “a",b" and Inaconlance with the February 29,2081 material event notice, 250 fey ailion shates were acquired for RS 37 mlion, i, RS 151 por share. Base on the provisions in item I f Article 256, the average price pad The table below
Slide 9: Executive Summary: Economic appraisal
rat for eso, sujet fever " Executive Summary 44.2 Economic appraisal ‘The projetions are expressed in current currency andi millions of reals, exept serwise nical. The rests fr 2011 2021 were Drogte. The perpetuity was projected without consiering any el _gromth, Le tony ince project inflation index
Slide 10: Executive Summary: Financial Results assumptions
rat for eso, sujet fever " Executive Summary + Financial Results: prot bas on (© Assumed discount of 8 ofthe eet card receivables at rateof ‘0% af CD, for gi days (he average prod for ret ard. payment (Indexing the prison of the IPTU property tax payable fo rio ‘Sears that is bing contested in cour
Slide 11: Executive Summary: Sensitivities and conclusion
rat for denon, abet ‘change " Executive Summary ‘Sensitivities ofthe Hase Case (Sensitivity”) Im addition tothe Base Cas, we prepared an alteative scenario, ‘which we detain “Seton 4 ~ Exomie Appraa” ofthis repr. “Accordingly, we ran the following sensitivities: + Real sales growth: we projected rea
Slide 12: Limitations on Responsibility
rat for eso, sujet fever " Executive Summary ‘Our work sjust one of several fetors tobe considered in arriving at the valve of compan: determinable basicaly through negotiation by Fe initiative among the intrested partes, nan open a re market, ‘where none ofthe partes hive special motives to buy or
Slide 13: Limitations on Responsibility (Cont)
rat for eso, sujet fever " Executive Summary ‘5. Limitations on Responsibility (Cont) Any report in draf frm or pretminary presentations of ur work ‘were sued soley for discussion betwen the Administration and PwC. “Acconingly they shoul be tized onl fr this end al sbould not be ‘considera as final
Slide 14: Overview: Sector and Company
t Section 2 Overview — Sector and Company Project Sens sy2011 Pe 1
Slide 15: The Retail Sector (Supermarkets)
rat for eso, sujet ‘change " Section 2 - The Retail Sector (Supermarkets) ‘TheSector “The sctor remains ho, taining in 2009 the best es history. according to information otsined rom APAS: ra Number ofebelous wise ae ap Sumeratempnees Sort 20% Salesereninm? wam aa a ae a Siksperm’ _ 900 istorteal inv
Slide 16: Grupo Sendas
Draft for deo, sajet tochange Section 2 - Company Grupo Sendas ‘Senda operates in retail rough sypermarhets and, singe 2004, s__Net Salen and Gros Profits itilion of Rt) ‘bon part of GPA. ie ‘TheSendas banners lized by GPA nthe state of Rio de Jane, 2» oS with afoeus on consumer income category C. S
Slide 17: Article 256 Economic Analysis
t Section 3 Article 256 Economic Analysis Project Sens iy2011 Pe
Slide 18: Introduction to Article 256
rat for eso, sujet fever Section 3 — Introduction to Article 256 Introduetion “The Administration found undertaking thi analysis applicable ight ‘ofthe transaction involving the anuiston ofan additonal stake in ‘Sendas, as disclosed inthe Material Event Notice dated February 2, In accordance wih Ate
Slide 19: Terms, Definitions and Considerations
rat for denon, abet fever ' Section 3 — Terms, Definitions and Considerations Methodology and approach ~ review ofthe historical financial statements nd management dat for 2008, 2009 an 2010; ~ interviews withthe Company’ principal encetives ~ analysis, understanding and discussion wih the Administr
Slide 20: Market Value of Shareholders' Equity (Assets)
rat for denon, abet fever " Section 3 - Market Value of Shareholders’ Equity We have analy below the tems onthe Bane ‘material adjustments to be considered. tn any case exept for the proper; plant and equipment, any marking to market would be negative, ct (Assets) 0 that we couldnt any adjustments t
Slide 21: Market Value of Shareholders' Equity (Liabilities)
rat for eso, sujet fever " Section 3 - Market Value of Shareholders’ Equity Weave analy below the tems onthe Balance Sheet (Labi) so that we could Mei any adjustments to markt valve. We did nt ‘entity materia adjustents to be considera. oan aeings Sore and vocal hares 5, "The avenge perdi eipt 55 dp
Slide 22: Analysis of fixed assets
rat for denon, abet fever " Section 3 - Market Value of Shareholders’ Equity Analysis of fived assets An analysis fie assets was done, bse om information made {vale by the Administration and reflect together in Seas ‘sscountng toward eheching fr any nee for adjustments i the ‘amount presenta. Wedd n
Slide 23: Conclusion
Draftfor dain, sft Section 3 — Conclusion Conclusion “The table below summarizes the results obtained in the Artie 256 nals considerng the amount pr share of KS 1.51 pa: Amount Amount paid / pershare Paragraph Results Totals ¢_Resulisat present ost q "Gootempses the hypothetical oistnet fhe estat 30
Slide 24: Economic Appraisal
t Section 4 Economic Appraisal Project Sens y2011 Pe oy
Slide 25: Macroeconomic Assumptions
rat for denon, abet fever " Section 4 —Macroeconomic Assumptions Macro economy For projection purposes, the féllowing macroeconomic indicators (annul percentages) were ws: ee aT a ETE orca ae ne a a a a Project Sens y2011 Pre ey
Slide 26: Base Case
t Section 4.1 Base Case Projet Sends sy2011 Pe 2
Slide 27: Projected Statement of Results
rat for denon, abet ‘change Section 4.1 — Projected Statement of Results Base Case et Gross evens Sa0h a7 Gay GSE Gaol Ast O000 GATE OSH) OME TAK TAS TAM BHR Scat ‘ion “tape “tga “tea a) oom) or) ton) C8) (8) toad) (oe) (oe) has) Setrovense 200 3248 apr 4200 4000 gos 557 ste sim son) bast esta B05 H
Slide 28: Gross Revenue
rat for eso, sujet fever Section 4.1 — Projected Statement of Results Base Case Gross Revenue ‘Senda even derves fundamentally from its etal operations (sapermarket, representing 88% af ttl gross revenue for December eso. Inadditon, Senasisactve in atacarjofcah-and-cary™ (vith the company Nanocarpe)
Slide 29: Gross Revenue: sales per m2
raft fr discussion, sujet ‘change " Section 4.1 — Projected Statement of Results Base Case Gross Revenue ‘Thecharts below show the beasior of sales per m* eve the course ofthe projection in nominal terms wth inflaton) andrea terms. 1s worth noting that no real growth was projected after 2013 "Venda
Slide 30: Sales Taxes and Net Revenue
Dr fe dio, et — Sales Taxes and Net Revenue ‘Sales Taxes and Net Revere Sales tees (PI, Cofias and IOMS) were projected based en the average Recetaigulda (RS Bahses) ‘strialvateover the last 9 yrs (2008 ~ 2010), ss shown the wble —— ol HH ‘The table balow shows theprojectd sales taxes snd the respec
Slide 31: Costs and Gross Profit
rat for denon, abet tochange Section 4.1 — Costs and Gross Profit Base Case Costs tas etimate thatthe contribution margin(grss profit ver net revenue) woud ineease rom 25.4% in 2040 t0 26.8% in 2018, due tothe «changin the sales mix, among other benefits deriving fom the transaction, stalizingat los
Slide 32: Operating Expenses
raft for dncusio, ake ‘change Section 4.1 — Operating Expenses Base Case Operating Expenses ‘Tre table below shows the projected operating expenses: Terrain @)_ GG) G6) Go) Ow GG) G9) GG Moiesimoveemeeee (80) (69) (6s) (GO G8) (Gd Gm) Go) Goo Gd Gromernlepenes —(S:) Ge) Gs) a9) oe) 2) Ca) Gm Ges Goo
Slide 33: EBITDA
raft fr discussion, sujet ‘change tr Section 4.1 — EBITDA Base Case Enrrpa ESET seat man son9 aon aoe a9R ao ao aoe aay a aoe aoa ao Gospel —— ta ops sao Sah igs Topo atopy) 8) sree Se Tapes God) Gad) O96) 5S) Oo) GR) Gas) Coss) G0) (aso) Gina) a6) Gad) tamistoutie a) (68) (eed) 20) tes) ie) (89) a)
Slide 34: Financial Result
rat for eso, sujet fever " Section 4.1 — Financial Result Base Case Financial Result ‘Dacant nn ST 330 a 1 88 Tore aa 33 or So eo 00 Financial wu Gea) G33) Goa) Goa ne) Goud Gea) Gor 0) ast) (Discount on Trade Acceptance Bills (uplcatas): projet a result of the discount on wae acceptance il for the
Slide 35: Projected Balance Sheet
rat for eso, sujet fever ' Section 4.1 — Projected Balance Sheet Balance sheet ‘Thetaance shet a of December 31,2010 was tie asthe basis for the projections For purposs of projetng the balance sheet and ‘workingeapital, we made te following adjustments to sharcolders “or accounting reassifations, 1.
Slide 36: Projected Assets
rat for denon, abet ‘change " Section 4.1 — Projected Balance Sheet Projected Assets a a a a a a “8 8 8 8 8B & w & % ee a a ee ee eS eos & SoS ee Se “Themin asst accounts were preted follow “The Accounts Receivable were projet lsd onthe historia average period for rept, ao takinginto consideration t
Slide 37: Projected Liabilities and Working Capital
rat for eso, sujet fever ' Section 4.1 — Projected Balance Sheet ana TE “The Suppliers account was projet bal on the gross amount of purchases and the payment period of dys in acordance with the isto + Indexing ofthe provision for TU tx payable from prior years that is bing challenges court, isdscha
Slide 38: Permanent Assets: Investments - Capex
rat for denon, abet fever Section 4.1 — Permanent Assets Investments - Capex Investments (Capes) Investments inh expenses for converting banners ane CAPEX for maintenance that reinvest the depreciation forthe period In 20u, investment of RS 13 milion was contemplated for converting the banner of13 S
Slide 39: Projected Cash Flow
rat for denon, abet fever ' Section 4.1 — Projected Cash Flow Projected cash flow. woe ETE EET ETE MET ETE EET ETE TE ea a CT Deprecition CO ne ne ee and Ste pid Gd 6 6) 6) CY G6) OH G09 (09) GH) AMloaed Sani expnte © 4 & 6) © G GB G GM ~ ‘Change in Working Capa 7 > 8 GS) MO) mB ow Bo canis ()G)_@)_
Slide 40: Sensitivity
t Section 4.2 Sensitivity Project Sens siy2011 Pe °
Slide 41: Projected Statement of Results (Sensitivity)
rat for eso, sujet ‘change ' Section 4.2 — Projected Statement of Results Sensitivity Gross revenae 268 2788 4aH7 4605 4947 5:00 Gas OOM OO ORS TAS THIS THN BOS Seta ‘Gon tans “tea “tenn “any “Cosy “ras) “Gory “ehan) “s) “toes “oea) oer) (as) Netrevene 300 diosa gust soo 390s @aat ogee os paren Go G
Slide 42: Gross Revenue (Sensitivity)
Draft for deo, sajet tochange Section 4.2 — Projected Statement of Results Sensitivity Gross Revente ‘Gross Revenue was projected assuming shower growth n sales pot le the sakes shoul each the same level, butat ‘Bferent dats. Inthe Base Cave this evel of aks is attained in 2019, lattheamount of 2,90
Slide 43: Gross Revenue: sales per m2 (Sensitivity)
raft fr discussion, sujet ‘change " Section 4.2 — Projected Statement of Results Sensitivity Sorsigaoom? ss sss | igg8—iog8 —igg8 i958 ug i958 95) ing g8 9B ie RStoosyorCenln) 2 ys ihy | apm ang 3B ao ABH aeRO OS RewentSelas 2983 327 ammo |amna 49m Moor 497 safox SlORB som4 Gator B59 GABA 74k: Semes
Slide 44: Costs and Gross Profit (Sensitivity)
rat for denon, abet tochange " Section 4.2 — Costs and Gross Profit Sensitivity Costs \Weran gross margin such thatit no longer reaches its stabitaton ero Brat e mare bre RS ies) point of 26.6% of net revere nthe fre projection ear (2011), bt Father in 2017 (consistent withthe growth in ales por squ
Slide 45: EBITDA (Sensitivity)
raft fr discussion, sujet ‘change tr Section 4.2 — EBITDA Sensitivity Enrrpa {GiiSEG_R sont tonp sono sou aom aon) song ong aod —aons ani ano aoa aaa Genspct fox 8 9es hans —Sso8 —Ssog sabe ry 48086 aS rw shoe (ey Ga) 5) >) Gas) Gop) OH) GH Gs) Goo) Gate) Gad G0 Coed 16) (6) (a) Co) =) ) (02) (89) (
Slide 46: Projected Cash Flow (Sensitivity)
rat for denon, abet fever ' Section 4.2 — Projected Cash Flow Projected cash flow. oa Gono aoig Zou) ois soso a0 wow aowo aOR Sey Wa 206-2) 207 SSSR Deprcition| On ee ad CS tae pid GPG GG) Go) Go) GH) 425) GO) GH) CH) AMleated fc expe © 9 6 ©) 6 GH G Ww w @ ‘angen Working Capa @ 6 5 % & & & B w Be c
Slide 47: Discount rate
t Section 4.3 Discount rate Project Sens iy2011 Pe 2
Slide 48: Discount rate: CAPM
rat for eso, sujet fever ' Section 4.3 — Discount rate ‘capM ‘Thediscount rat utilized wo bring Sends cash ows to present vale was calculate ase onthe Capital Asset Pricing Model or CAPM in accordance with the following form Cost of equity capital» RF/iUSA*i Brazil + Beta x (Rm ~ RO + Country risk +
Slide 49: Conclusion
t Section 4.4 Conclusion Project Sens y2011 Pe ‘°
Slide 50: Conclusion range
Draft for deo, sajet tochange " Section 4.4 — Conclusion “The figure below showsthe conlasion range forthe totality of Senda’ capita: Conclasion range in tions of 88) ‘Basel on () ou discussions with GPA; (i) the Administrations assumptions asda inthis report: (i) ou sensitivity analsis: and Gv) the
Slide 51: Glossary
Draft for deo, sajet tochange "Glossary ay i oxic Brie de Supermerdn Avance for Faure Agena of apt dantamento par Paro Aunent de Capel) Amigo Panta de Sopernerntos zs ental Bank (Bano Cetra do Bras) Index that measure the vriation a share in elation oa perfectly densified neste potlo Compound Avera]
Slide 52: Glossary (continued)
Draft for deo, sajet tochange " Glossério Avex ton god and seis (paso sobre a Creal de Mecadrias Sere) Non consumer rs index Un Pre Consniar A) Apropo tax imps Pedi Trt Urbano) Amiocome tax inpstode Renda) ‘rom Domeste Pract “Te faehncome Teny Hon ate y the US. government ret Senos y2011 2 Es
Slide 53: 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: April 12, 2012 By: /s/ Enéas César Pestana Neto Name: Enéas C
Brazilian Distribution Co Companhia Brasileira DE Distr CBD — Presentation (April 2012) on 6ix