1
2
This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of B2W. These are merely projections and, as such, are based exclusively on the expectations of B2W’s management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitors’ pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in B2W’s filed disclosure documents and are, therefore, subject to change without prior notice.
The merger between Submarino and Americanas.com was approved at the Extraordinary Shareholders Meeting held on December 13, 2006. However, for comparison purposes, the comments on performance hereby compare 3Q07 and 9M07 results with pro-forma unauditedincome statements for the thirdd quarter and first nine monts of 2006 (3Q06 and 9M06) of Americanas.com, Shoptime and Submarino compounded. Such pro-forma information does not replace audited Financial Statements filed at the Brazilian Stock and Exchange Commission (CVM).
Forward-looking Statements
3
B2W ends the 9M07 with solid results, proving that the company continues to capture synergies resulting from the merger
Highlights
• Growth of sales associated to high operating efficiency standardsGross Revenue - growth of 45% in relation to 9M06Gross Margin - reached 30.2% of net revenue in 9M07, up 50 basis pointsOperating Expenses - reached 16.6% of net revenue in 9M07, down 110 basis pointsEBITDA - reached R$ 220 million in 9M07, representing a growth of 63%EBITDA Margin - reached 13.7% of net revenue in 9M07, increase of 170 basis pointsNet Working Capital – improvement of 22 days
• CADE approves the merger On November 7th, CADE approved the merger without restrictions.
• Submarino CardSubmarino Card share in the sales of Submarino website surpasses the milestone of 10% in September.
• Expansion of B2W ViagensLaunch of Americanas Viagens and Shoptime Viagens.
• Reformulation of Americanas.com websiteAmericanas.com launches new website layout.
4
335
487
123 172
30.2%
29.9%29.7%
29.2%
9M06 9M07 3Q06 3Q07
70 bps
50 bps
Gross Revenue (R$MM) Gross Profit and Gross Margin(R$ MM and %NR)
1,583
2,301
598821
9M06 9M07 3Q06 3Q07
37%
45%
Gross Revenue, Gross Profit and Gross Margin
5
199
267
7088
17.7%16.6% 16.6%
15.4%
9M06 9M07 3Q06 3Q07
-110 bps -120 bps
135
220
5384
12.0%13.7%
12.6%14.6%
9M06 9M07 3Q06 3Q07
200 bps170 bps
Operating Expenses(R$MM)
EBITDA and EBITDA Margin(R$ MM and %NR)
Operating Expenses and EBITDA
6
EBITDA and EBITDA Margin
37.844.0
53.4
71.766.6
69.7
83.7
11.3%12.0%
12.6%13.2% 12.9% 13.4%
14.6%
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
EBITDA (R$ MM) EBITDA (% NR)
7
(R$ million) 2Q07
Inventory Processing PeriodPayables Payment Period
Credit Card Receivables Collection Period
3Q07
55
83
140
55
78
157
(R$ million) 2Q07
Total Cash and Cash Equivalents( - ) Gross Debt
NET CASH
3Q07
396294
102
396265
131
Cash Conversion Cycle 112 134
Indebtedness
Working Capital
Indebtedness and Working Capital
8
. EBITDA grows 248% in 9M07
. EBITDA Margin in 9M07 reaches 43.1%, up 280 basis points
. Launch of Ingresso at Americanas.com
. Pilot Ingresso.com at kiosks in Lojas Americanas
. Exclusivity in sales of tickets for the concert of the band The Police
. Gross Bookings grows 153% in 9M07 and reaches R$67.8 million
. EBITDA Margin in 9M07 reached 15.3%, surpassing 20% in 3Q07
. Launch of Americanas Viagens and Shoptime Viagens
Subsidiaries
. 175 thousand cards issued in 1 year of operation, 121 thousand cards in 9M07
. Aggressive marketing campaign, with league programs and astonishing discounts for purchases made on Submarino website
. Submarino Card share in the sales of Submarino website surpasses the milestone of 10% in September
9
Americanas Viagens Shoptime Viagens
Expansion of B2W Viagens
10
4.76.9
10.4 11.1
15.1
23.3
29.5
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
Gross Bookings Growth Fast EBITDA Margin Evolution
Averag
e Growth of 3
0% Q
uarter
749898
1,225
1,8132,054
2,373
3,370
-74%
-16%
-40%
-21%
-4%
22% 22%
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07Net Revenue (R$ million) EBITDA Margin
B2W Viagens Performance
11
Americanas.com launches new website layout Highlights
Browsing 70% faster;
Google® search engine, which makes searching by product easier;
Enhancement of the product’s display;
Better shopping experience;
Reformulation of Americanas.com Website
12
Continuous synergies implementation process
Constant search for profitability increase
Working capital maximization
Maximization on our business (Ingresso.com, B2W Viagens e Submarino Finance)
The implementation of Blockbuster’s operation to rent out DVDs online
Optimization of logistics and technology platforms
Staff training and technological structure improvement to support the challenges in the Company’s growth path
Maintenance of our international expansion plan, focusing on local opportunities and delivering synergies
Next Quarters Priorities