conference call results 2q17 · conference call results 2q17. agenda 2q17 1. results 2. operational...

August 11th, 2017

CONFERENCE CALL

RESULTS 2Q17

AGENDA 2Q17

1. RESULTS

2. OPERATIONAL HIGHLIGHTS

3. INVESTMENTS

4. Q&A SESSION

2

MARKETPLACE GMV (R$)

816 MM

+105%

MARKETPLACE (% Total GMV)

29.6%

+13.7 p.p.

TOTAL GMV (R$)

2,754 MM

+10.1%

NEW CUSTOMERS (LTM)

+1.254 MM

MOBILE (% Traffic)

52.5%

MARKET SHARE (%)

26.3%

+4 p.p.+0.8 p.p.

1. RESULTS 2Q17

3

4

1. ACCELERATED SHIFT OF THE BUSINESS MODEL

4,303

3,999

1H16 1H17

Gross Revenue¹R$ MM

¹ Majority Direct Sales Revenue (1P)

3P Sales

Acceleration

Sales Migration

(from 1P to 3P)

Marketplace GMV and

Share (%Total GMV)R$ MM

746

1,588

1H16 1H17

15.0%

29.3%

-304 +842

+ 14.3 pp

4

5

1. REDUCTION OF CASH CONSUMPTION

5

2Q152Q14 2Q16 2Q17

Lowest cash consumption for the second quarter in the

last four years

~R$ -330 MM¹

¹Excluding the positive effects of the Capital Increase

6

Consolidation of B2W Digital´s leadership position

Source: e-Bit

2. MARKET SHARE EVOLUTION

19.9%

25.5%

26.3%

+2.9 p.p+12.7 p.p

17.0%

16.0%

13.6%

1H12 2Q16

#2 player

2Q17

6

7

29.6% participation of Total GMV in 2Q17 (+13.7 p.p. vs. 2Q16).

GMV of R$ 3.0 billion in the last 12 months (+120%)

3Q16

Marketplace GMV (R$ MM)

15.9%

Marketplace GMV (R$ MM) Marketplace Participation (%)

18.7%

2Q16

398

19.4%

4Q16

2. EVOLUTION OF THE MARKETPLACE

571

862

28.9%

1Q17

772

7

816

29.6%

2Q17 2Q17

LTM

1,368

3,021

2Q16

LTM

+2.2x

In line with the strategy of integrating shopkeepers of various sizes

and sectors, B2W has established important new partnerships

2. MARKETPLACE: NEW PARTNERSHIPS

8

More than 6,000 sellers on the platform (+50% vs. 2Q16)

B2W Seller Day: prepare sellers for big sales events of the second half

of the year.

2. B2W MARKETPLACE

9

+1,000PARTICIPANTS

Sellers,

Providers,

Strategic Partners

Launch of Seller Premium: objective to recognize and encourage the

best Sellers.

2. B2W MARKETPLACE

10

platinum gold silver bronze

Rating Citeria:

Product quality

Level of service

Customer rating

Sales volume

2. B2W MARKETPLACE

11

Launch of Promoseller: sellers will automatically join sales

campaigns launched by B2W

B2W DIGITAL

CREATES

PROMOTIONAL

CAMPAIGNS

Seller A

Free shipping

Seller B

5% Discount

Seller C

Installment

Seller D

Upfront payment

Sellers adhere and choose conditions

Launch of Marketplace on TV Shoptime: sellers can demonstrate

and sell their products.

2. B2W MARKETPLACE

12

+1MViewers per day

+39MHouseholds reached

Largest product demonstration television channel

Launch of B2W Empresas Marketplace: allowing sellers access to a new

B2W sales channel of corporate audiences.

2. B2W MARKETPLACE

13

7xHigher

(vs. Individual customer)

R$58Billion in pre-approved

credit

1st e-commerce site to accept BNDES Card

Corporate

audience

B2W Sellers

Average ticket

BNDES Card

Optimization of processes and rationalization of expenses, without loss of

customer service levels

3. REDUCTION OF EXPENSES (SG&A)

14% of GMV

R$ MM

246.3

303.3

264.0

-12MM

1Q17

276.2

1Q16

-57MM

2Q172Q16

8.9%

11.2%

9.9%

- 1.3 pp - 3.2 pp

12.1%

¹ According to Reclame Aqui: Last 6 Months / Base 08/10/2017.

² Considers the sites Pontofrio.com, Casasbahia.com, Extra,com, Walmart.com and Magazineluiza.com.

³ Consider the Marketplace operations of Pontofrio.com, Casasbahia.com, Extra,com, Walmart.com and Mercado Livre.

B2W continues to be recognized as best-in-class for its customer

service

Average grade¹ 5.27.7

Solution index¹ 76%93%

Would buy again¹

52%79%

COMPETITORS

69%

43%

4.25.6

78%

57%

3P³1P²3P1P

2. CUSTOMER SERVICE

15

B2W will continue to invest in the digitial platform built, monetizing

on all areas of the business.

201520142013

Continuous reduction of CAPEX as a % of

total GMV …

201520142013

Increase coverage of

EBITDA/CAPEX

… and increase coverage of CAPEX by

EBITDA.

Note: CAPEX total of R$ 714 MM, R$ 812 MM, R$ 808 MM and R$ 460 MM for 2013, 2014, 2015 and 2016, respectively.

12%

9%

7%

60%

68%

76%

1H16

5%

1H16

CAPEX for 1H17 totaled R$ 161.1 million (3% of total GMV) and the EBITDA coverage

index for the period was 152%.

3. INVESTIMENTS

3%

152%

1H17 1H17

16

122%

The Digital Platform

that connects People,

Businesses, Products

and Services.

17

2Q17 Earnings Call

and Webcast

Investor Relationswww.b2wdigital.com

ri@b2wdigital.com

Telephone: +55 (21) 2206-6000