2 2005 Overview 193 stores at the end of 2005 174 traditional – sales area above 1,000 m219 express – sales area between 400 and 600 m2Total area of thousand m2Present in most Brazilian states, with strong presence in the major Brazilian urban centers.Largest portal in sales volume and shopping destination in Latin AmericaBest e-commerce website by the fifth consecutive year, according to Ibest Award popular juryShoptime acquisition, adding a new clients base and two new sales chanels - TV and catalogFinancing company created through a joint-venture with Banco Itaú, aimed at financing purchases, offering personal credit and credit cards to Lojas Americanas’ customers.Completed the refurbishment of all Facilita’s points of sale in 2H05, two years ahead of schedule,Total of 210 points of sale, including 17 own stores
3 Operating Highlights - 2005 ProfitabilityConsolidated EBITDA (R$330.9 million) grew 20.5% over 2004Stable EBITDA margin (12.0%) vs (12.1%)Net Income (R$176.1 million) % higher vs. 2004Greater Operating EfficiencyOperating expenses margin, as a % of NR, fell 0.5 percentage points compared to 2004Gross revenues per associate went up 11.3% over 2004Expansion / Investments37 store openings in 2005 – 25 Traditional and 12 ExpressScheduled openings: +19 stores and 30 stores under evaluation and negotiationShoptime and Americanas Taií
4 Sales Area x Number of Stores 2005 Gross RevenueSame stores sales growth: % (4Q05 = 8.8%)New stores opened: + 37 stores (4Q05 – 21 stores)Americanas.com/Shoptime Growth: % (4Q05 = 106.6%)Total Gross Revenue Growth: %Sales Area x Number of Stores330.1Sales Area2005 x 2004:+12.4%CAGR: + 8.8%293.7193Stores259.1243.0156StoresStores235.9121StoresSales Area (thousand m2)98Stores105Stores20012002200320042005
5 Operating Expenses (excluding depreciation and amortization) 0.5 percentage points reduction in 2005, even with the 37 store openings and Americanas.com/Shoptime sales growthOperating Expenses (excluding depreciation and amortization)(% of NR)- 0.5 p.p.22.4%20.8%19.0%18.9%18.4%20012002200320042005
7 “We Always Want More” Changes in Net Income Quarterly Net Income (R$ Million)Annual Net Income(R$ Million)Impacts: acquisition,expansion (depreceation) and non-operating results.Highest net income along the last years.176.1+ 5.7%48.2%45.564.1200420054Q044Q05“We Always Want More”
8 Net Cash* and CapexNet Cash (R$ million)70.6%Net cash expansion, despite of aggressive organic growth:37 new stores (R$77.4 million)Acquisition of Shoptime in August, 2005 (R$117.0 million)Capitalization of Financeira Americanas Itaú – FAI (R$40.0 million)R$ MMR$ 170.8MM1,407.41,236.6974.9874.820042005Gross DebtCash* Considering Credit Cards Receivables
9 Share Performance76.1% (LAME4) and 70.7% (LAME3) valorization vs. 27,7% of Ibovespa’sHigher liquidity – LAME4 average daily trading volume: R$6.6 millionInclusion in MSCI (2005) and in IBRX-50 (January, 2006)LAME4 X IBOVESPA20.030.040.050.060.070.03-jan17-jan1-feb17-feb3-mar17-mar1-apr15-apr2-may16-may31-may14-jun28-jun12-jul26-jul9-aug23-aug6-sep21-sep5-oct20-oct4-nov21-nov5-dec19-decPrice510152025303540Volume(R$ million)LAME4 VolumeLAME4IBOVESPA
10 This presentation contains forward-looking statements 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.