2. Important Disclaimer
Statements regarding the Company’s future business perspectives and projections of operational and financial results are
merely estimates and projections, and as such they are subject to different risks and uncertainties, including, but not
limited to, market conditions, domestic and foreign performance in general and in the Company’s line of business. These
risks and uncertainties cannot be controlled or sufficiently predicted by the Company management and may significantly
affect its perspectives, estimates, and projections. Statements on future perspectives, estimates, and projections do not
represent and should not be construed as a guarantee of performance. The operational information contained herein, as
well as information not directly derived from the financial statements, have not been subject to a special review by the
Company’s independent auditors and may involve premises and estimates adopted by the management.
2
3. 4Q11 and 2011 Highlights
Net Revenue in 4Q11 of R$ 199.2 million, up 14.0% on 4Q10. In 2011, Net Revenue was
Net Revenue
R$ 678.9 million, increasing 18.8% on 2010;
EBITDA in 4Q11 of R$ 33.2 million, with margin of 16.7%. In 2011, EBITDA was R$ 117.7
EBITDA
million, growing 23.3% from 2010;
Net Profit in 4Q11 of R$ 26.9 million, up 25.1% on 4Q10. In 2011, Net Profit was R$ 91.6
Net Income
million, increasing 42.0% from 2010;
SSS (Same SSS (owned stores) in 4Q11 increased by 15.0% over 4Q10 and by 11.4% in 2011 over
Store Sales) 2010. SSS (franchises - sell-in) increased by 2.2% and 11.3% over 4Q10 and 2010 respectively;
As planned for 2011, Arezzo&Co expanded its store chain by 38 points of sale, expansion of
Expansion
21.7% in selling area in relation to 2010.
3
4. Company Growth
Gross Revenues – (R$ million)
21.0%
862.6
712.6 47,4
-5.9%
50.4
16.9%
255.8 815.2
218.9 662.5
15.9% 23.1%
16.1
13.9
204.9 239.7
16.9%
4Q10 4Q11 2010 2011
Gross Revenue amounted to R$ 862.6 million in 2011, increasing 21.0% over 2010
4
5. Gross Revenues Breakdown by Channel
Gross Revenues by channel – Domestic Market (R$ million)
815.2
23.1%
9.0
662.5
152.2
5.4
110.0 38.4%
16.9%
239.7 234.0
204.9 188.4 24.2%
57.0%
1.7% 4.2 17.1%
0.3 58.9 420.0
37.5 358.7
56.0 56.9
7.7%
111.1 119.6
4Q10 4Q11 2010 2011
SSS Sell-out (Owned Stores) 4.7% 15.0% 17.6% 11.4%
SSS Sell-in (Franchises) 17.2% 2.2% 29.1% 11.3%
Solid performance for all distribution channels, specially owned stores with 57.0% growth in
4Q11 and 38.4% in 2011
(1) Others: increase of 1180.7 % in 4Q11 and of 65.4% in 2011.
5
6. Gross Revenues Breakdown by Brand
Gross Revenues by brand – Domestic Market (R$ million)
23.1% 815.2
32.5
662.5
10.2 215.8
173.1 24.7%
16.9%
239.7
204.9
18.3%
11.8% 566.9
1.9 12.3 479.2
53.7 60.0
12.0%
149.4 167.4
4Q10 4Q11 2010 2011
Arezzo, main brand of the Group, recorded gross revenue growth of 18.3% in the year.
Schutz recorded gross revenue growth of 24.7% in the year
(1) Other brands: Alexandre Birman and Anacapri’ s Domestic market. Gross revenues presented a growth of 544.1 % in 4Q11 and of 217.6 % in 2011.
6
7. Distribution Channel Expansion
Owned Stores and Franchises Expansion
21.7% 21.4
18.1% Franchises 288
12.0% 17.6 Owned Stores¹ 19
Multi Brands² 969
14.9
13.3 334
296 +38 45 Franchises 1
263 29
237 21 +33 Owned Stores¹ 17
+26
10 Multi Brands² 1.408
267 289
242 Owned Stores 1
227
Multi Brands² 18
Owned Stores 8
4Q08 4Q09 4Q10 4Q11
Multi Brands² 726
Company operated 334 stores in 2011 year-end, growing 21.7% from previous year
Note: area given in thousand m²
(1) Includes 6 outlets stores
(2) Domestic Market 7
8. Gross Profit
Gross Profit (R$ million) and Gross Margin (%)
41.5%
40.5%
40.3% 281.4
39.0%
231.6 21.5%
17.8%
80.3
68.2
4Q10 4Q11 2010 2011
Gross Prof it Gross Margin
Gross margin increased 1.3 p.p. in 4Q11 and 1.0 p.p. in 2011 when compared to the previous
year, mainly due to change in distribution channel mix
8
9. EBITDA
EBITDA (R$ million) and EBITDA Margin (%)
17.3%
17.7%
16.7% 16.7% 117.7
95.5
23.3%
7.0%
31.0 33.2
4Q10 4Q11 2010 2011
EBITDA EBITDA Margin
EBITDA margin decreased 1.0 p.p. in 4Q11 over 4Q10, while EBITDA margin expanded 0.6
p.p. in 2011 over 2010
9
10. Net Income and Net Margin
Net Income (R$ million) and Net Margin (%)
13.5% 13.5%
12.3% 11.3%
91.6
64.5
42.0%
25.1%
26.9
21.5
4Q10 4Q11 2010 2011
Net Income Net Margin
Net Income amounted to R$ 91.6 million in 2011, an increase of 42% over 2010
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11. Cash Generation
Operating Cash Generation (R$ thousand)
Growth or Growth or
Cash flows from operating activies 4Q10 4Q11 2010 2011
spread spread
Income before income taxes 29,531 34,932 5,401 89,289 125,452 36,163
Depreciation and amortization 823 1,168 345 2,670 4,058 1,388
Others 1,187 (2,532) (3,719) 1,735 (10,475) (12,210)
Decrease (increase) in current assets / liabilities (25,998) (19,102) 6,896 (48,404) (47,302) 1,102
Trade accounts reveivable (20,709) (19,700) 1,009 (29,170) (47,118) (17,948)
Inventories 2,536 14,302 11,766 (27,657) (8,518) 19,139
Suppliers (14,615) (12,765) 1,850 (330) 8,542 8,872
Change in other current assets and liabilities 6,790 (939) (7,729) 8,753 (208) (8,961)
Change in other non current assets and liabilities (4,365) 1,971 6,336 (291) (147) 144
Tax and contributions (11,776) (13,845) (2,069) (24,542) (28,548) (4,006)
Net cash generated by operating activities (10,598) 2,592 13,190 20,457 43,038 22,581
Operating Cash Generation of R$ 43.0 million in 2011, despite of R$ 47.3 million in working
capital consumption
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12. Capital Expenditure (CAPEX) and
Indebtedness
CAPEX (R$ million) Indebtedness (R$ million)
94.9% 30.2
Indebtedness 4Q10 3Q11 4Q11
0.8 Cash 13,004 178,999 173,550
6.1
15.5 Total indebtedness 46,769 35,065 38,659
13.3
115.3% 5.4% Short term 27,370 16,270 20,885
% da Dívida Total 58.5% 46.4% 54.0%
0,1 Long term 19,399 18,795 17,774
-27.7% 1,7
6.2 2.1 191.2% % da Dívida Total 41.5% 53.6% 46.0%
5.8 23.4
Net debt 33,765 (143,934) (134,891)
0.4 282.8%
11.1
2.9 8.0 EBITDA LTM 95,572 115,561 117,729
2.9 Net debt /EBITDA LTM 0.35x -1.25x -1.15x
4Q10 4Q11 2010 2011
In 2011, Arezzo&Co invested R$ 30.2 million, mainly used for 16 Owned Stores openings, 4
expansions and renovations, as well as for key investments in future stores openings and
expansions
(1) Others: reduction of 79.1% in 4Q11 over 4Q10 and of 53.2% in 2011 over 2010.
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13. Contacts
CFO and IRO
Thiago Borges
IR Manager
Daniel Maia
Telephone: +55 11 2132-4300
ri@arezzoco.com.br
www.arezzoco.com.br
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