conference call 4q17 results · accelerating transition of the business model ¹ majority direct...
TRANSCRIPT
March 8, 2018
CONFERENCE CALL
4Q17 RESULTS
AGENDA 4Q17
1. RESULTS
2. OPERATIONAL HIGHLIGHTS
3. INVESTMENTS
4. Q&A SESSION
2
MARKETPLACE GMV (R$)
1,796 MM
+108.4%
MARKETPLACE (% Total GMV)
42.8%
+23.4 p.p.
TOTAL GMV (R$)
4,201 MM
-5.3%
PRODUCT ASSORTMENT (Marketplace)
+4.2 MM
MOBILE (% Traffic)
62.7%
NEW SELLERS
+1.9k
+11.4 p.p.
1. RESULTS 4Q17
3
+92.2%
MARKETPLACE GMV (R$)
4,533 MM
+108.0%
MARKETPLACE (% Total GMV)
35.3%
+17.8 p.p.
TOTAL GMV (R$)
12,838 MM
+3.1%
B2W ENTREGA (# Sellers)
+4.9K
MOBILE (% Traffic)
57.4%
NEW SELLERS
+5.0K
+8.0 p.p.
1. RESULTS 2017
4
5
8,764
2016 2017
Gross Revenue¹R$ MM
-1,756
Accelerating 3P
Sales
Migration of Sales(1P to 3P)
Marketplace Participation of
GMV (% Total GMV) R$ MM
2,179+2,354
17.5%
35.3%
1. ACCELERATING TRANSITION OF THE BUSINESS MODEL
¹ Majority Direct Sales Revenue (1P)
+ 17.8 pp
5
4,53310,520
2016 2017
6
1. GENERATION OF CASH
Reduction of R$ 670 MM in cash consumption in 2017.
¹Disregarding the positive effects of the Capital Increase
20152014 2016 2017
-R$ 670 MM¹
Cash generation of R$ 509 MM in 4Q17.
8
2. BLACK FRIDAY
11
B2W Marketplace accounted for more than 50% of Total GMV
on Black Friday:
11
7
Sales Acceleration
• B2W was the leader of traffic during the event
• Sellers increased sales by 20x (vs. a strong day of sales)
• Largest Marketplace platform during the event
+20x
8
2017
42.8% participation of Total GMV in 4Q17 (+23.4 p.p. vs. 4Q16)
GMV of R$ 4.5 billion for the full year 2017 (+108.0%)
2,179
4,533
2016
Marketplace GMV (R$ MM)Marketplace GMV (R$ MM) Marketplace Participation (%)
+2.1x19.4%
4Q16
2. EVOLUTION OF THE MARKETPLACE
862
28.9%
1Q17
6
816
29.6%
2Q17
772
35.7%
1,149
3Q17
42.8%
1,796
4Q17
B2W Marketplace connected more than 1,900 sellers in 4Q17
2. PRIME INTEGRATION WITH B2W ENTREGA
9
+9,700 +4,900
Sellers Sellers
B2W Entrega connected over 4,900 sellers in 2017 and began
allowing sellers to list their items on the Prime loyalty program
+1MM items
listed on Prime
+50% Penetration rate of
Sellers
+5,000 Sellers
vs.
Dec/16
Sellers on
B2W Entregaare eligible for Prime
2. EXPANSION OF PRIME FOR SHOPTIME
10
Launch of Shoptime Prime: For R$ 79.90 customers have unlimited
free shipping and fast delivery with differentiated service levels.
Exclusive Benefits: With Shoptime Prime, customers are able to
develop and buy unique and customized products.
Prime(Submarino, Americanas and Shoptime)
Representing Coverage of
65% of GDP
Present in
2,479 Cities
11
2. LAUNCH OF C2C (CUSTOMER TO CUSTOMER)
B2W Marketplace commenced the C2C operation on
Americanas.com in the Books and Games categories
Unlimited
assortment
Expansion of
customer base
Significant increase
in site traffic
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2. BIT: A REFERENCE IN DISCRUPTIVE PROJECTS
The B2W Digital Lab has developed innovative projects with Harvard University, MIT and Stanford University in 4 fronts:
Marketing Optimization
Last Mile
Dynamic Pricing
Artificial Intelligence
B2W Innovation & Technology
In partnership with:
Gain of R$ 240 MM in 2017, due to the optimization of processes
and rationalization of expenses
In R$ MM
% of GMV
368
455
4Q
264276
246
303
271
355
1Q 2Q 3Q
20172016
-57MM -87MM-12MM -84MM
13
10.2%
8.8%
- 1.4 pp
2. REDUCTION OF EXPENSES (SG&A)
¹ According to Reclame Aqui: Last 12 months / Base 02/22/2018.
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.
Average grade¹ 5.37.0
Solution index¹ 77%87%
Would buy again¹
53%72%
COMPETITORS
70%
46%
4.56.0
82%
60%
3P³1P²3P1P
2. CUSTOMER SERVICE
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B2W continues to be recognized for the highest
customer service
B2W will continue to invest in the digital platform built, leveraging all
of its business fronts.
201520142013
Continuous reduction of CAPEX as a % of
Total GMV …
201520142013
Increased coverage
EBITDA/CAPEX
… and increased coverage of CAPEX by
EBITDA.
Note: CAPEX total of R$ 714 MM, R$ 812 MM, R$ 808 MM and R$ 460 MM in 2013, 2014, 2015 and 2016, respectively.
12%
9%
7%
60%68%
76%
2016
4%
150%
CAPEX for 2017 totaled R$ 379.9 million (3.0% of total GMV) and the EBITDA coverage
index for the period was 163%.
3. INVESTMENTS
3%
163%
2017
15
Reduction of CAPEX
% of Total GMV
2016 2017
The Digital Platform
that connects People,
Businesses, Products
and Services.
16
4Q17 Earnings Call
and Webcast
Investor Relationswww.b2wdigital.com
Telephone: +55 (21) 2206-6000