ROADSHOW 2006
Europe
“We Always Want More”
CONTENTS
• Overview of Lojas Americanas
• Time Line
• Five Main Fronts of Growth
• Lojas Americanas in figures
• Business strategy
•Priorities for Cash
•Operating Highlights 1Q06
“We Always Want More”
OVERVIEW OF LOJAS AMERICANAS
US$ 1.5 billion (R$ 3.6 billion) Consolidated Gross Revenue in 2005
Market Cap of US$ 2.5 billion (R$ 6.0 billion)
EBITDA Margin 12.0% (2005)
Net Income 2005 US$ 73.4 million (R$ 176.1 million)
Brazilian leader in sales : CDs, DVDs, cookies, chocolates, candies, toys, lingerie
Prominent position in Brazil’s retail sector
Leading position in LATAM Internet (Americanas.com/Shoptime)
Personal loans and consumer credit offering
3 Distribution Centers
9.4 thousand employees
Awards:
Agência Estado Destaque Empresas 2005
(The Best performance for the shareholders)
Folha de São Paulo “Top of Mind 2005”
Revista Exame - “Melhores e Maiores”
Forbes Brasil - “Platinum List 200”
iBest “Best Ecommerce Site”
“We Always Want More”
TIME LINE
77 years old
1929
’40
Lojas
Americanas
Foundation
Lojas
Americanas
goes public
(IPO)
’82
Garantia’s
Bank
partners
’98 ’99
2001
Focus in
the core
business
(IT/Logistics)
Lojas
Americanas
Turnaround
Americanas.com
Creation
’03
’05
Americanas
Express
Project
Organic Growth
Record:
37 new stores
The number of stores
doubled in the last 5
years!
Shoptime
Acquisition
Americanas Taií
Creation
“We Always Want More”
FIVE MAIN FRONTS OF GROWTH
Multi-Channel Retailing
DC PE
30 stores
22,900 m²
DC RJ
69 stores
DC SP
35,500 m²
103 stores
53,000 m²
“We Always Want More”
FIVE MAIN FRONTS OF GROWTH
Multi-Channel Retailing
 Bricks-and-mortar Business
202 stores (may/06)
180
Nort
h
DC PE
30 stores
2
Northeas
t
29
MidWest
22,900 m²
traditional - avg.1,500
m2


22 express -
avg. 500 m2
Average Ticket: R$ 24.1
19

Southeas
t
125
South
27
DC RJ
69 stores
DC SP
35,500 m²
103 stores
53,000 m²
Customer Profile:

up to 1.8MM
customers/day in events

77% women - Middle
class
“We Always Want More”
FIVE MAIN FRONTS OF GROWTH
Multi-Channel Retailing
6 MILLION
CUSTOMERS

E-Commerce and TV Channel
Business

2 websites, telephone sales,
Catalogue and TV channel
DC SP
(14MM antennas)

Brazil - 1st. in sales on line -
6 MM Customers
+ 200 countries
around the world

Average Ticket R$ 300

Complementary Assortment

Exclusive and differenciated
products
“We Always Want More”
FIVE MAIN FRONTS OF GROWTH
Multi-Channel Retailing
Nort
h
2
Northeas
t
29
MidWest
19
Southeas
t
+ 16 own
stores
125
South
27

Financial Business

Joint-venture w/Banco Itaú
Personal Loans, Consumer Credit,
Private Label and Co-branded
Cards

“We Always Want More”
FIVE MAIN FRONTS OF GROWTH
“We Always Want More”
LOJAS AMERICANAS IN FIGURES
Gross Revenue (R$ million)
4000
3,640
3500
2,949
3000
2,325
2500
1,918
2000
1,693
1,765
1,510
1500
1000
1999
2000
2001
2002
2003
2004
2005
“We Always Want More”
LOJAS AMERICANAS IN FIGURES
Consolidated EBITDA (R$ million)
12.0%NR
350
330.9
300
274.7
250
217.6
200
142.8
150
90.1
100
50
0.6%NR
8.0
0
2000
2001
2002
2003
2004
2005
“We Always Want More”
LOJAS AMERICANAS IN FIGURES
SG&A Expenses (% Net Revenue)
25.9
25
22.5
20.8
20
19.0
18.9
2003
2004
18.4
15
10
2000
2001
2002
2005
“We Always Want More”
LOJAS AMERICANAS IN FIGURES
Gross Margin (% Net Revenue)
30.9
29.5
30.3
30.2
30
28.1
25.2
25
20
2000
2001
2002
2003
2004
2005
“We Always Want More”
LOJAS AMERICANAS IN FIGURES
Gross Revenue per Associate (R$ thousand)
344
350
309
300
266
250
200
229
170
150
100
2001
2002
2003
2004
2005
“We Always Want More”
LOJAS AMERICANAS IN FIGURES
LAME3 X LAME4 X IBOVESPA
LAME3
2500
2000
LAME4
Growth 2001-2005
LAME3 2,422%
LAME4 1,913%
IBOV
119%
1500
1000
500
IBOV
0
jan-01
jan-02
jan-03
LAME3
Return on Equity
47.2%
59.6%
54.9%
jan-04
LAME4
jan-05
IBOVESPA
Earnings per Share (R$)
33.9%
25.9%
1.54
1.78
0.96
0.83
2001
2002
2003
2004
2005
2001
2.64
2002
2003
2004
2005
“We Always Want More”
LOJAS AMERICANAS IN FIGURES
Shareholders Capital Structure
Position at March, 2006
Common
4.4%
Shares
Total
Foreign
Investors
Shares
56.2%
41.4%
24.7%
Shares
Treasury
37.0%
Foreign
Investors
25.7%
Controlling
Shareholders
CBV
2.4%
Preferred
Foreign
Investors
7.1%
Free Float
53.3%
18.4%
2.6%
29.6%
60.6%
2.7%
“We Always Want More”
BUSINESS STRATEGY
Brazil in figures
Over 5,500
Brazilian cities
•Population: over 180 million
•Number of mobile phones: 90 million
•Credit cards: over 50 million
•Internet users: over 20 million
“We Always Want More”
BUSINESS STRATEGY
Potential Growth
210
70
Less 100,000
inhabitants
Over 100,000
inhabitants
Cities with
LASA stores
5,500
5,220
options via Internet, telesales, catalogs and TV
to a potential public of 43 million Brazilians.
“We Always Want More”
BUSINESS STRATEGY
Bricks and Mortar Business
Expansion
Pillars
Stores opened
Stores programmed
Stores under negotiation
Number of inhabitants
35
37
16
4
Consumer Profile
?
22
7
Presence of other
players
10
2001
2002
2003
2004
2005
2006
Integration of
locations and logistics
“We Always Want More”
BUSINESS STRATEGY
Bricks and Mortar Business
Expansion 2006
Northeast Region
10 stores
opened
+
22 stores
schedule
d
9
Middle-West Region
Recife-PE 2 Express
Natal - RN
Vitória da Conquista - BA
São Luis - MA 2 Traditional
Fortaleza - CE
Maracanaú - CE
Feira de Santana – BA
2
Dourados - MS
Cuiabá - MT
16
Southeast Region
Niterói - RJ - Estrada de Itaipú Express
Rio de Janeiro - RJ 2 Express
South Region
Criciúma - SC
Curitiba - PR 2 Traditional
Londrina - PR
Tubarão - SC
5
São Paulo – SP 1 Traditional + 4 Express
Ribeirão Preto - SP
Suzano - SP
Taubaté - SP
São José do Rio Preto – SP 1 Traditional + 1 Express
Divinópolis - MG
Ipatinga - MG
Barreiro - MG
“We Always Want More”
BUSINESS STRATEGY

Latin America’s #1 E-retailer - Multi Channel

200.000 SKUs are available for 6 million customers

TV channel that reaches 14 million antennas and growing

Our E-commerce business represents 24% of LASA consolidated sales (2005)

E-commerce in Brazil

over 90% of Brazilian
consumers have never
purchased on the Internet
“We Always Want More”
BUSINESS STRATEGY
E-commerce Gross Revenue (R$ million)
1000
864.8
900
800
700
600
500
434.0
400
267.6
300
166.4
200
80.8
100
25.2
0
2000
2001
2002
2003
2004
2005 *
* Shoptime´s acquisition was in September, 2005
“We Always Want More”
BUSINESS STRATEGY
Joint Venture LASA - BANCO ITAU


JV will enable credit access for over 40 million
brazilians without bank accounts

Personal Loans, Consumer Credit, Private Label
and Co-branded Cards

Benefits
Co-Branded International
Cards (Visa/ MC)
August,2006
Co-Branded Cards
(Visa/ MC)
August,2006


Selling Expenses reduction (fees)

Improvement in consolidated Working Capital

LASA´s Capital Gain: R$ 200 million (50% of JV)
Forms of Payment (1Q06)
Lojas Americanas
Personal Loan Card
May,2006
Americanas.com
89%
Credit Card
2% Checks
42%
56%
Private Label Card
May,2006
Credit Card
Cash
11% Other
“We Always Want More”
PRIORITIES OF CASH

Expansion Program and Investments
Technology
and Operations
 Store openings and remodeling
 People - capacitating the associates

CAPEX budget for 2006: R$ 158.1 MM
 Share Buy-Back and Dividends Program
 EVA
Total
2001-2006:
R$ 486.5 MM
® Oriented
46% EBITDA
Dividends Payment and Share Buy-back
Program (R$ million)
Store Opening Evolution
Share Buy-back
Stores opened
Stores programmed
Dividends Payment
Stores under negotiation
35
35.3
18.1
37
28.5
?
11.1
16
7
0.4
4
2001
10
2002
89.2
22
2003
2004
2005
2006
86.5
2.3
87.2
57.0
56.3
14.6
2001
2002
2003
2004
2005
2006
* 2005 - Shoptime Acquisition R$ 117 million
“We Always Want More”
BUSINESS STRATEGY
Technological innovations to increase the efficiency of the
business processes and keep pace with the Company’s expansion.
TECHNOLOGY
Our headquarters, stores and distribution centers are
connected in real-time, allowing total control over operations.
10.4 Million tickets / month
3.2 thousand points of sales
3 million credit cards transactions / month
OPERATIONS
By using the CDs, we cut down on inventories and losses and
optimized distribution by daily deliveries of the replacement stock
requested, guaranteeing products at the right time, in appropriate
quantities.
PEOPLE
 Employees’ training programs
 90% of all store managers are formed by the company
“We Always Want More”
OPERATING HIGHLIGHTS – 1Q06
Better Operating Efficiency (vs. 1Q05 - difference in Easter sales period)
 Consolidated EBITDA (R$75.1 million) grew by 12.6%
 Operating Income (R$55.5 million) 7.4% increase
 0.2 p.p. reduction in G&A expenses, as % of NR
 SSS growth Jan-April/2006 vs. Jan-April/2005 + 12.1%
Gross revenue per associate grew by 7.9%
110% increase in consolidated gross revenue of A.com and Shoptime
“We Always Want More”
“We will continue to pursue our learning path and to overcome obstacles,
and this makes us enthusiastic since it will enable us to achieve
new levels of results, always seeking to better meet our customer’s needs”.
“WE ALWAYS WANT MORE”
This presentation contains forward-looking statements. Such statements
are not statements of historical fact, and reflect the beliefs and expectations
of the Lojas Americanas’management. The words "anticipates", “wishes”,
“expects”, "estimates", “intends", "forecasts", "plans", "predicts", "projects",
"targets" and similar words are intended to identify these statements, which
necessarily involve known and unknown risks and uncertainties. Known
risks and uncertainties include, but are not limited to, the impact of
competitive products and pricing, market acceptance of products,
regulatory environment, currency fluctuations, supply difficulties, changes in
product sales mix, and other risks. Forward-looking statements speak only
as of the date they are made, and the Company does not undertake any
obligation to update them in light of new information or future
developments.
MSCI Logo:
The use of Morgan Stanley Capital International Inc.´s ("MSCI") trademarks
and index names does not constitute a sponsorship, endorsement or
promotion by MSCI, any of its affiliates, any of its information providers or
any other third party involved in, or related to, compiling, computing or
creating any MSCI index. The MSCI indexes are trademarks of MSCI or its
affliates and have been lincensed for use for certain purposes by Lojas
Americanas S.A.
“We Always Want More”