2q14 and 1h14 results. 2 disclaimer this presentation contains statements that can represent...
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2Q14 and 1H14 Results
2
DisclaimerThis presentation contains statements that can represent expectations about future events or results. These statements are based on certain suppositions and analyses made by the company in accordance with its experience, with the economic environment and market conditions, and expected future developments, many of which are beyond the company’s control. Important factors could lead to significant differences between real results and the statements on expectations about future events or results, including the company’s business strategy, Brazilian and international economic conditions, technology, financial strategy, developments in the footwear industry, conditions of the financial market, and uncertainty on the company’s future results from operations, plans, objectives, expectations and intentions – among other factors. In view of these aspects, the company’s results could differ significantly from those indicated or implicit in any statements of expectations about future events or results.
3
VolumeDomestic market: 27.7 million pairs (10.7%)
Exports: 9.1 million pair (5.4%)
EBITR$ 38.9 million (30.0%)
Margin 9.8% (4.0 p.p.)
Lucro líquido R$ 72.4 million 9.4%
Preço médio
Domestic market R$ 13.94 6.8%
ExportsR$ 11.25 8.2%
US$ 5.05 0.6%
Câmbio Positive impact: R$ 7.4 millionExchange
Average price
Profit
EBIT
Highlights 2Q14 (YOY 2013)
Volumes
44
VolumeDomestic market: 58.6 million pairs (14.4%)
Exports: 24.9 million pairs 0.8%
EBITR$ 111.3 million (23.4%)
Margin 12.5% (3.9 p.p.)
Lucro líquido R$ 168.9 million 0.2%
Preço médio
Domestic market R$ 14.22 10.7%
ExportsR$ 10.86 17.4%
US$ 4.73 4.0%
Câmbio Positive impact: R$ 31.1 millionExchange
Average price
Profit
EBIT
Highlights 1H14 (YOY 2013)
Volumes
5
1H07 1H08 1H09 1H10 1H11 1H12 1H13 1H14 500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
667,707
721,123 778,813
841,118
908,408
981,080
692,437
775,529 868,593
972,824
1,089,562
1,220,310
577,268 618,247
743,179
847,632
699,337
908,081
1,108,285 1,104,161
Gross sales revenueGrowth at a compound annual growth rate (CAGR) between 8% and
12%
Guidance 8% a.a. Guidance 12% a.a. Realized
R$ m
illio
n
6
1H07 1H08 1H09 1H10 1H11 1H12 1H13 1H14 60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
93,386
104,592
117,143
131,200
146,944
164,577
95,887
110,270
126,811
145,832
167,707
192,863
80,924 83,380
121,572
84,924
100,390
141,549
168,532 168,946
ProfitGrowth at a compound annual growth rate (CAGR) between 12%
and 15%
Guidance 12% a.a. Guidance 15% a.a. Realized
R$ m
illio
n
7
1H07 1H08 1H09 1H10 1H11 1H12 1H13 1H14 -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
37,476 32,936
61,831
34,612 41,616
87,749
145,243
111,312
EBIT
Realized
R$ m
illio
n
8
Gross Revenue
2Q12 2Q13 2Q14 -
100,000
200,000
300,000
400,000
500,000
600,000
322,941.0404,256.0385,843.0
89,697.0
100,458.0102,902.0412,638.0
504,714.0488,745.0
Domestic marketExports
R$ m
illio
m
1H12 1H13 1H14 -
250,000
500,000
750,000
1,000,000
1,250,000
700,723.0879,524.0833,483.0
207,358.0
228,761.0270,678.0908,081.0
1,108,285.01,104,161.0
Domestic marketExports
R$ m
illio
n
9
Gross revenue – Analysis by market (%)
2Q12 2Q13 2Q140%
10%20%30%40%50%60%70%80%90%
100%
78.3% 80.1% 78.9%
21.7% 19.9% 21.1%
Domestic marketExports
1H12 1H13 1H140%
10%20%30%40%50%60%70%80%90%
100%
77.2% 79.4% 75.5%
22.8% 20.6% 24.5%
Domestic marketExports
10
Net sales revenue
2Q12 2Q13 2Q14 -
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
330,454.0
401,113.0397,020.0
R$ m
illio
n
1H12 1H13 1H14 -
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
726,216.0
886,920.0890,808.0
R$ m
illio
n
11
Cost of goods sold (COGS)
2Q12 2Q13 2Q14 -
50,000
100,000
150,000
200,000
250,000
192,162.0
230,644.0237,074.0
R$ m
illio
n
1H12 1H13 1H14 -
100,000
200,000
300,000
400,000
500,000
600,000
419,554.0
496,579.0522,075.0
R$ m
illio
n
12
Gross profit and gross margin
2Q12 2Q13 2Q14 -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
138,292.0
170,469.0159,946.0
41.8%42.5%40.3%
Gross profit Gross margin
R$ m
illio
n % m
argin
1H12 1H13 1H140
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
306,662.0
390,341.0368,733.0
42.2%44.0%
41.4%
Gross profit Gross margin
R$ m
illio
n % m
argin
13
Gross profit - 2Q13
Decrease in net revenue
Decrease in raw materials
Increase in personnel
costs
Decrease in other costs
Gross profit - 2Q14
-
50,000
100,000
150,000
200,000
250,000
170,469.0159,946.0
(4.1) 1,201.0 (9.2)1,526.0
R$ m
illio
nGross profit
COGS increase = R$ 6.4 / 2.8%
(1.0%) (1.2%)10.2% (4.1%)
14
Gross profit - 1H13
Increase in net revenue
Increase in raw materials
Increase in personnel
costs
Increase in other costs
Gross profit - 1H14
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
390,341.0368,733.03,888.0 (0.3) (22.2)
(3.0)
R$ m
illio
nGross profit
COGS increase = R$ 25.5 / 5.1%
0.4% 0.1%11.7% 3.9%
15
Advertising and publicity
2Q12 2Q13 2Q14 -
5,000
10,000
15,000
20,000
25,000
30,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
28,459.026,663.026,152.0
8.6%
6.6% 6.6%
Advertising and publicity% of net revenue
R$ m
illio
n
% of net revenue
1H12 1H13 1H140
10,000
20,000
30,000
40,000
50,000
60,000
70,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
58,447.059,549.052,502.0
8.0%
6.7%5.9%
Advertising and publicity% of net revenue
R$ m
illio
n
% of net revenue
16
EBIT and EBIT margin
2Q12 2Q13 2Q14 -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
32,239.0
55,532.0
38,877.0
9.8%
13.8%
9.8%
EBIT EBIT margin
R$ m
illio
n % m
argin
1H12 1H13 1H140
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
87,749.0
145,243.0
111,312.0
12.1%
16.4%
12.5%
EBIT EBIT margin
R$ m
illio
n % m
argin
17
EBIT
-
10,000
20,000
30,000
40,000
50,000
60,000
55,532.0
38,877.0
(4.1)(6.4)
511.0 (5.2)(2.6) 1,184.0
R$
mill
ion
(R$ 7.3) / 6.3% R$ 1.2
Increase operating expenses = R$ 6.1 / 5.3%
(1.0%)
2.8% 1.9%
3.0%
18
EBIT
- 20,000 40,000 60,000 80,000
100,000 120,000 140,000 160,000 180,000
145,243.0
111,312.03,888.0 (25.5)
7,047.0 (9.0)(5.7) (4.6)
R$ m
illio
n
(R$ 7.7) / 3.1% (R$ 4.6)
Increase operating expenses = R$ 12.3 / 5.0%
0.4%
5.1% 11.8%3.0%
19
Finance result
2Q12 2Q13 2Q14 -
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000 36,715.0
19,055.0
33,531.0
R$ m
illio
n
1H12 1H13 1H14 -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
76,273.0
46,299.0
61,862.0
R$ m
illio
n
20
Profit and net margin
2Q12 2Q13 2Q14 -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
59,495.066,184.0
72,413.0
18.0%16.5%
18.2%
Profit Net margin
R$ m
illio
n % m
argin
1H12 1H13 1H140
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
141,549.0168,532.0168,946.0
19.5%19.0%19.0%
Profit Net margin
R$ m
illio
n % m
argin
21
Volumes
2Q12 2Q13 2Q14 -
5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000
25,009.030,986.027,685.0
7,796.0
9,662.09,144.0
32,805.0
40,648.036,829.0
Domestic marketExports
Mill
ion
pairs
1H12 1H13 1H14 -
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
100,000
51,519.068,483.0
58,620.0
22,040.0
24,725.024,924.0
73,559.0
93,208.083,544.0
Domestic marketExports
Mill
ion
pairs
22
Volumes - – Analysis by market (%)
2Q12 2Q13 2Q140%
10%20%30%40%50%60%70%80%90%
100%
76.2% 76.2% 75.2%
23.8% 23.8% 24.8%
Domestic marketExports
1H12 1H13 1H140%
10%20%30%40%50%60%70%80%90%
100%
70.0% 73.5% 70.2%
30.0% 26.5% 29.8%
Domestic marketExports
23
Average price – Total – R$
Average price – DM – R$
Average price – Exports – R$
Average price – DM – US$
2Q12 2Q13 2Q14
12.58 12.42 13.27
2Q12 2Q13 2Q14
12.91 13.05 13.94
2Q12 2Q13 2Q14
11.51
10.4011.25
2Q12 2Q13 2Q14
5.86 5.02 5.05
Average price – 2nd Quarter
24
Average price – Total – R$
Average price – DM – R$
Average price – Exports – R$
Average price – Exports – US$
1H12 1H13 1H14
12.34 11.89
13.22
1H12 1H13 1H14
13.60 12.84
14.22
1H12 1H13 1H14
9.41 9.25
10.86
1H12 1H13 1H14
5.04 4.55 4.73
Average price – 1st Half
25
Investiments (property, plant and equipment and intangible assets)
2Q12 2Q13 2Q14 -
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
17,496.0
42,415.0
27,092.0
R$ m
illio
n
1H12 1H13 1H14 -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
24,573.0
54,769.0
65,741.0
R$ m
illio
n
26
Accumulated amount of deliberate dividends since IPO: R$ 1,619,070,338.49 – representing R$ 5.383980 per share. (Base 300,720,000)
R$ million 1H10 1H11 1H12 1H13 1H14
Minimum dividend – 25% 9.1 18.0 25.5 26.5 18.0
Additional dividend 25.4 53.9 76.1 79.1 53.9
Total 34.5 71.9 101.6 105.6 71.9
Payout % * 41.5% 74.5% 74.7% 64.8% 43.6%
1H10 1H11 1H12 1H13 1H14
34.5
71.9
101.6 105.6
71.9
41.5%
74.5% 74.7%
64.8%
43.6%
Dividend (R$ mn) Payout* %
Dividends (R$)
(*) Payout: Dividend divided by profit after the allocations to legal reserves.
27
Assets
December 31, 2013 June 30, 2014
44.1%
36.6%
19.3%
50.4%
34.6%
15.0%
June 30, 2013
35.2%
46.9%
17.9%
Cash and cash equivalents and financial investments (ST and LT)
Working capital (Cash and cash equivalents and financial investments (ST and LT)
Non-current assets
28
Value indicators
* June 30, 2014** Profit in the last 12 months
Cash and cash equivalents and fi-
nancial investments (ST and LT) per
share*
Net working capital per share*
Book value per share*
Profit per share** Share price* Share price* / Profit per share**
3.12
4.26
6.89
1.44
13.81
9.59
29
4.1%
7.1%
88.8%
5.0%
7.7%
87.3%
4.3%
7.7%
88.0%
Liabilities* and Consolidated equity
December 31, 2013 June 30, 2014June 30, 2013
Liabilities – FinancialLiabilities – OperationalConsolidated equity
* Liabilities: Current + Non-current
30
Net Cash (R$ million)
31-Mar-13 30-Jun-13 30-Sep-13 31-Dec-13 31-Mar-14 30-Jun-14
990.4 983.6867.4
734.0
1,045.8938.5
(72.8) (95.2) (126.9) (117.7) (169.4) (96.7)
917.7 888.4
740.5616.2
876.4 841.8
Cash and cash equivalents and financial investments (ST and LT)Borrowings (ST and LT)Net Cash
Net cash: ↑ 36.6% vs. Dec. 31, 2013