1st HALF OF 2005 RESULTS Bovespa: Grandes marcas, preços baixos, todos os dias. LAME3 (CS) LAME4 (PS) Operating Highlights Expansion of Store Network 8 new stores in the first half – 5 in 2Q05 An increase of 37 stores year-on-year Reduction of Operating Expenses Cash operating expenses fell 40 basis points Performance Relatively Weak Easter is a sales driver in April Cofins (sales tax) increased from 3% to 7.6% in Jan/01/05 Facilita was transferred to Americanas Taií 2 Bovespa: LAME3 (CS) LAME4 (PS) Grandes marcas, preços baixos, todos os dias. Gross Revenues “Same stores sales” growth : New stores opening: - 4.2% + 8 stores (5 in 2Q05) Americanas.com growth: Total Gross Revenues increase: + 100.1% + 19.5% New stores 303 235 m2 235 m2 98 stores 96 stores 1H01 1H02 248 m2 111 stores 1H03 m2 322 m2 263 m2 127 stores 1H04 164 stores 1H05 Sales Area 1H05 x 1H04:+15.2% 2H05 x 1H05:+ 6.4% 185 stores 2H05* 3 Sales area (thousand m2) stores Bovespa: LAME3 (CS) LAME4 (PS) Grandes marcas, preços baixos, todos os dias. Costs and Expenses COGS Impact of COFINS tax rate increase and Facilita transference COGS (% of NR) 69.5% 70.4% Selling Expenses 40 basis point improvement costs control SG&A Expenses Constant, even considering the mismatch between new stores opening and revenues Sales Expenses (% of NR) SG&A Expenses (% of NR) 17.2% 16.8% + 90 basis point 1H04 1H05 - 40 basis point 1H04 1H05 2.8% 2.8% Equal 1H04 1H05 4 Bovespa: LAME3 (CS) LAME4 (PS) Grandes marcas, preços baixos, todos os dias. Operating Results EBITDA margin reduction due to Cofins / Facilita Nominal EBITDA increased 10.6% EBIT was impacted by depreciation and amortization of new stores, which take a certain time to achieve expected profitability EBITDA (R$ million) +10.6% 116.2 105.1 10.5% 1H04 EBIT (R$ million) +6.8% 80.5 86.0 1H04 1H05 10.0% 1H05 5 Bovespa: LAME3 (CS) LAME4 (PS) Grandes marcas, preços baixos, todos os dias. Net Debt and Capex The Company holds a net cash position in order to fund its future capital expenditures program or to make timely acquisitions such as Shoptime Net Cash (debt) (R$ million) R$ (71.9) MM R$ 9.3 MM 1,188.6 1,197.9 812.9 741.0 2H04 Gross Debt 2H05 Cash 6 Bovespa: LAME3 (CS) LAME4 (PS) Grandes marcas, preços baixos, todos os dias. Net Income Variation (R$ MM) R$ 11.1 MM + 5.5 -12.5 Net Income 1H04 EBIT Financial Expenses, net +105.9 +5.1 R$ 115.0 MM Non Operating Results Tax/SC Participations Net Income 1H05 The main effect in the first half was the capital gain arising from the transference of Facilita to Americanas Taií 7 Bovespa: Grandes marcas, preços baixos, todos os dias. LAME3 (CS) LAME4 (PS) Shoptime Acquisition The Deal in Figures Total value: R$ 126.7 million Shoptime revenues: R$187 MM in 2004 and R$87 MM in 1H05 Multiple: 89% of 2005 forecasted net revenues Synergies and Best Practices Best practices exchange should benefit both companies Synergies: Shoptime EBITDA margin from 7.4% - LASA 12.1% Maintain 2 separate brands Complementary to LASA’s previous sales channels 8 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.