Upload
cia-hering-ri
View
185
Download
3
Embed Size (px)
DESCRIPTION
Citation preview
0
1
Disclaimer
This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to Cia. Hering's growth prospects. These are merely projections and, as such, are based exclusively on the expectations of Cia. Hering 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, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in Cia. Hering’s filed disclosure documents and are, therefore, subject to change without prior notice.
22
AGENDA: • Highlights• Operational Performance• Stock Market• Business Strategy and Outlook
3
Highlights
BEGINNING OF STRATEGIC PLAN IMPLEMENTATION IN AUGUST/07
• Hering brand price repositioning
• Opening of five stores in 3Q07 - four under the Hering Store flag and one PUC store
EARNINGS
• Gross revenue from domestic market sales up 22.2% in 3Q07 (Hering brand up 25.1% and PUC brand up
27.3%)
• Same-store sales at owned Hering Store up 30.6% and at the franchise stores up 20.7%
• Gross profit in the domestic market up 15.4%
• EBITDA in August-September up 17% over the same period in 2006 (-10.7% in 3Q07)
CAPEX AND CAPITAL STRUCTURE
• R$ 8.0 million in investments in 3Q07
• Net cash of R$ 42.2 million
44
AGENDA: • Highlights• Operational Performance• Stock Market• Business Strategy and Outlook
55.5
69.4
12.3
9.6
11.2
10.6
2.9
2.7
3Q06 3Q07
6.55.8
7.2
4.2
2.2
2.60.5
0.41.3
0.9
3Q06 3Q075
Gross Revenue - R$ MM
Per Brand Per ChannelDOMESTIC MARKET
GROSS REVENUE BY MARKET
Private Label x Owned Brands Exports by Region
Mercosur
North Am.
Latin Am.EuropeOthers
EXPORT MARKET
78.4
5.7%
27.3%
7.4%
25.1%
Hering
PUCDzarmOthers
95.8
29.139.1
56.7
49.3
3Q06 3Q07
Franchise/Own Stores
Retail15.0%
34.4%
78.4
95.8
2.84.6
9.9
14.2
3Q06 3Q07
30.3%PrivateLabel
OwnedBrands
14.6
17.0
64.3%
17.0
14.614.1%17.0 14.5
95.8
78.4
3Q06 3Q07
22.2%
14.6%
15.6%
DomesticMarket
ExportMarket
95.4
110.4
10.8 12.1
11.7%14.9%
3Q06 3Q07
10.7%
3.2 pp
10.08.6
15.5%15.2%
Aug-Sep/06 Aug-Sep/07
17.0%
0.3 pp
6
Gross Profit and Adjusted EBITDA - R$ MM
Adjusted EBITDA and EBITDA Margin
Gross Profit and Gross Margin
24.8 20.9 2.4
1.3
40.5%41.4%
Aug-Sep/06 Aug-Sep/07
0.9 pp
14.7%
18.7%
12.1%23.326.1
33.7 29.2 4.1 1.4
37.9%41.2%
3Q06 3Q07
3.3 pp
65.9%
15.4%
5.2%33.3 35.0ExportMarket
DomesticMarket
Stores and Expansion Project
147 160
39
42
3942
19
23
1923
182151
2006 2007 9M06 9M07
HeringPUCExports
Number of Stores
7
Sep-06 Sep-07 2006 2007 2008 2009 2010Hering - Own Store 8 14 10 25 44 51 51Hering - Franchise 139 146 141 157 180 226 274Sub-total 147 160 151 182 224 277 325PUC - Own Store 1 2 1 2 2 2 2PUC - Franchise 38 40 38 40 40 40 40Sub-total 39 42 39 42 42 42 42Brazil 186 202 190 224 266 319 367Overseas - Franchise 19 23 19 23 23 23 23
Total 205 225 209 247 289 342 390
Distribution Channels in Brazil
• 160 Hering Stores
• 42 PUC Stores
• 7.468 Multi-brand Stores
(Hering brand)
8
9
Status of Franchise Store Opening Plan for 2007
State – City Location Status Expected Date Franchise
SP - São Paulo Rua Vieira de Morais Opened mar/07SP - São Paulo Al. Nhambiquaras Opened may/07BA - Salvador Salvador Shopping Opened may/07RS - Porto Alegre Rua 24 de Outubro Opened jul/07SP - Guarujá Shopping La Plage Opened sep/07SP - S. J. Campos Shopping Vale Sul Opened oct/07PR - Foz do Iguaçu Shopping Cataratas JL Opened oct/07SP - S. J. Rio Preto Shopping Plaza Avenida Confirmed nov/07SP - São Paulo Rua Diogo de Faria Confirmed nov/07SP - São Paulo Rua Carlos Weber Confirmed nov/07MG - Araxá Rua Capitão José Porfírio Confirmed nov/07GO - Aparecida de Goiânia Buriti Shopping Confirmed nov/07SP - Marília Shopping Aquarius Confirmed nov/07SP - Rio Claro Shopping Center Rio Claro Confirmed nov/07RS - Porto Alegre Shopping Total Confirmed nov/07PI - Teresina Riverside Shopping Confirmed nov/07SC - Florianópolis Shopping Itaguaçu Confirmed nov/07RN – Natal Midway Mall Confirmed nov/07
7 Opened
11 Confirmed
Status 2007
CurrentFranchisee
New Franchisee
10
Status of Owned Store Opening Plan for 2007
State – City Location Status Expected Date
SC - Florianópolis Shopping Iguatemi Santa Mônica Opened jun/07
RJ - Rio de Janeiro Norte Shopping Opened aug/07
RJ - Rio de Janeiro Rio Design Barra Opened aug/07
MG - Belo Horizonte Diamond Mall Opened sep/07
PR - Curitiba Shopping Estação Opened oct/07
SP - São Paulo Shop. Market Place Opened oct/07
SC - Balneário Camboriú Balneário Camboriú Shopping Opened oct/07
RJ - Rio de Janeiro Rua Visconde de Pirajá (Ipanema) Confirmed nov/07
SP - São Paulo Santana Parque Shopping Confirmed nov/07
RJ - Rio de Janeiro Rua da Quitanda Confirmed nov/07
RJ - Rio de Janeiro Shopping Aricanduva Confirmed dec/07
SP - Guarulhos Shopp. Intern. Guarulhos Confirmed nov/07
SP - São Paulo Avenida Paulista Confirmed dec/07
SP - São Paulo Shopping Santana (Transference) Confirmed nov/07
SC - Balneário Camboriú Avenida Brasil (Transference) Confirmed nov/07
7 Opened
6 Confirmed
Status 2007
11
Franchises – Domestic Market Indicators
Hering Store 3Q06 3Q07 chg. 9M06 9M07 chg.Number of Store 148 160 8% 148 160 8%
Franchises 139 146 5% 139 146 5%Own Stores 9 14 56% 9 14 56%
Hering Chain Revenue - R$/thousand 46,577 59,004 27% 143,441 167,830 17%Same Store Sales - 21.6% - 12.8%Sales Area - m² 20,397 21,669 6% 20,397 21,669 6%Revenue per m² - R$ 2,283 2,723 19% 7,032 7,745 10%Customer Servicing 580,001 718,962 24% 1,796,824 1,971,628 10%Items 1,352,039 1,741,410 29% 4,220,611 4,668,144 11%Average Ticket - R$ 80.30 82.07 2% 79.83 85.12 7%
1.3
8.0
3.7
6.8
3.2
2.6
2.6
3Q06 3Q07 9M06 9M07
5 5,48,6
20
63
2004 2005 2006 2007 E 2008 E
12
Capex – R$ MM
Stores
IT
Industry
Other
Debt Profile
Short Term85.0
Long Term63.2
185 188201
(42)
4.6
(1.7)
3.73.5
2005 2006 Sep/06 *
* Last 12 months EBITDA
Net Debt/EBITDA
By Maturity - R$ MM
Sep/07*
Net Debt - R$ MM
Net Debt/EBITDA*
13
1414
AGENDA: • Highlights• Operational Performance• Stock Market• Business Strategy and Outlook
15
Stock Market
Number of Trades 325 12,780 3832%Participation in Trading Sessions - % 55.6% 94.6% 39.0 p.p. Quantity Traded - 000 758 24,497 3132%Volume Traded - R$ 000 2,539 244,461 9528%Share Price - R$ (¹) 3.60 10.39 189%Total Shares Outstanding - 000 33,095 53,928 63%Market Cap - R$ MM (¹) 119,138 560,302 370%(¹) 09/28/2007
Indicators - HGTX3 9M06 9M07 Chg.
50
100
150
200
250
300
350
Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07
IBOVESPA HGTX3
Cia Hering ON versus Ibovespa(09/29/2006 = 100 basis)
60,465
10.39HGTX3 + 189 %
IBOVESPA + 66 %
1616
AGENDA: • Highlights• Operational Performance• Stock Market• Business Strategy and Outlook
17
Business Strategy and Outlook
Launching of Hering Store card
Visa flag
Many benefits to consumers
Strategic tool for increasing sales at the Hering Store chain
Increase in number of Hering Stores
182 stores by year end, up 10 from initial plan for 2007
Hiring of new executives
An executive for Product and Marketing, with wide experience in the sector
An executive for the Hering Store card operations, with wide experience in the financial market
Investor Relations Consulting FirmFIRB – Financial Investor Relations BrasilPhone: +55 (11) 3897-6405e-mail: [email protected]
18
Investor Relations TeamFabio Hering – Deputy-CEO and IR DirectorVilmar da Costa – CFOKarina Koerich – IR ManagerPhone +55 (47) 3321-3469 e-mail: [email protected]