institutional presentation 2q21 - api.mziq.com
TRANSCRIPT
INSTITUTIONAL
PRESENTATION
2Q21
COMPANY OVERVIEW
2
COMPANY OVERVIEW
3
R$ 2.0 BILLIONSGROSS REVENUE IN 2020
R$ 526.4 MILLIONSWEB COMMERCE GROSS REVENUE IN 2020
889 STORES140 OWNED STORES E 749 FRANCHISES
(2Q21)
3,9 THOUSANDEMPLOYEES (2Q21)
+ 487%GROWTH IN STOCK PRICE SINCE THE IPO (2011)
R$ 9.2 BILLIONSMARKET CAP VALUE (12/08/2021)
+ 157 MILLIONS¹OF VISITS ON BRANDS WEBSITES AND APPS
IN 2020
NOTES:
(¹) AREZZO&CO ONLY
1966
OFF THE
WALL
4
ALLIED IN
FASHION
AND LIFE
CHOOSE TO
BE YOU
EXCLUSIVE
EXPERIENCE
CELEBRATE
THE
DIFFERENCES
SELF CARE
ELEVATE
THE
MOMENT
201820152009200819951972 1966 2004
OFF THE WALL FREE TO BE
STRONG PLATAFORM OF BRANDS
AREZZO&CO IS A LEADING COMPANY IN THE WOMEN'S FOOTWEAR, HANDBAGS AND ACCESSORIES
SEGMENT THROUGH ITS PLATFORM OF REFERENCE BRANDS
COMPANY OVERVIEW
AREZZO&CO IS THE REFERENCE IN THE BRAZILIAN RETAIL SECTOR AND HAS A UNIQUE POSITIONING
COMBINING GROWTH WITH CASH GENERATION
LEADING COMPANY IN
THE FOOTWEAR AND
ACCESSORIES INDUSTRY
WITH PRESENCE IN ALL
BRAZILIAN STATES
CONTROLLING
SHAREHOLDERS ARE
REFERENCE IN THE
SECTOR
DEVELOPMENT OF
COLLECTIONS WITH
EFFICIENT SUPPLY
CHAIN
ASSET LIGHT: HIGH
OPERATIONAL
EFFICIENCY
STRONG CASH
GENERATION AND HIGH
GROWTH
13.0 MILLION PAIRS OF SHOES
1.4 MILLION HANDBAGS (1)
0.9 MILLION CLOTHES (2)
MORE THAN 6,500 POINTS OF
SALE
~30% MARKET SHARE ON AB
CLASSES (3)
NOTAS:
(1) AS OF 2020
(2) AMOUNT OF PIECES OF CLOTHES SOLD BY THE BRANDS: VANS (2020) AND RESERVA GROUP (DECEMBER 2020)
(3) REFERS TO THE BRAZILIAN WOMEN FOOTWEAR, HANDBAGS, MEN’S AND WOMEN’S SNEAKERS MARKET (SOURCE: COMPANY ESTIMATES). AS OF 2020
(4) CONSIDERS AREZZO&CO ONLY
MORE THAN 48 YEARS OF
EXPERIENCE IN THE SECTOR
WIDE RECOGNITION
11,500 MODELS CREATED PER
YEAR
AVERAGE LEAD TIME OF 40
DAYS
MORE THAN 18 LAUNCHES
PER YEAR
90,7% OUTSOURCED
PRODUCTION (4)
ROIC OF 25.6% IN 1Q21
3,923 EMPLOYEES
NET REVENUES CAGR:
9.5% (2015 - 2020)
INCREASED OPERATING
LEVERAGE
5
MERGER
LAUNCH OF NEW BRANDS
STRATEGIC PARTNERSHIP
INTERNATIONAL EXPANSION
LICENSING AND M&A
LAUNCH OF NEW BRANDS
SUCCESSFUL TRACK RECORD OF ENTREPRENEURSHIP
FOUNDATION AND
STRUCTURING
INDUSTRIAL
ERARETAIL ERA CORPORATE ERA INDUSTRY REFERENCE
FOUNDED IN 1972
FOCUSED ON BRAND AND
PRODUCT
FIRST STORE
CONSOLIDATION OF
INDUSTRIAL BUSINESS
MODEL LOCATED IN MINAS
GERAIS
1.5 MM PAIRS PER YEAR
AND 2,000 EMPLOYEES
FOCUS ON RETAIL
R&D AND PRODUCTION
OUTSOURCING ON VALE DOS
SINOS - RS
FRANCHISES EXPANSION
COMMERCIAL OPERATIONS
CENTRALIZED IN SÃO PAULO
FAST FASHION CONCEPT
SPECIFIC BRANDS FOR
EACH SEGMENT
EXPANSION OF
DISTRIBUTION CHANNELS
EFFICIENT SUPPLY CHAIN
INITIAL PUBLIC OFFER (IPO):
FEV/2011
CONSOLIDATE LEADERSHIP
POSITION
FIRST MALE SHOE FACTORY
LAUNCH OF THE FIRST DESIGN
WITH NATIONAL SUCCESS
OPENING OF THE FLAGSHIP
STORE AT OSCAR FREIRE
SCHUTZ LAUCH
1972 215470’s 80’s 90’s FIRST DECADE OF 2000 2011-2020
THE RIGHT CHANGES AT THE RIGHT TIME ACCELERATED THE COMPANY'S DEVELOPMENT
2007
2007
2008 2009
2015 2018
2012
6
2019 2020
54.2% 0.0%
45.8% 54.2%
NOTES
1- AREZZO&CO CAPITAL STOCK IS COMPOSED OF 99.631.414 COMMON SHARES, ALL NOMINATIVE, BOOK-ENTRY SHARES WITH NO PAR VALUE
2- SHAREHOLDER STRUCTURE AS OF DECEMBER 31, 2020
3- INCLUDES LTI PLAN
MANAGEMENT³OTHERS
BIRMAN FAMILY FLOAT
SHAREHOLDER STRUCTURE
7
88
1972
TRENDY
NEW
EASY TO USE
ECLETIC
16 – 60 YEARS
WEB GROSS REVENUE
R$ 248.5 MM (27%)
RETAIL PRICE POINT
R$ 240.00 / PAIR
GROSS REVENUE
R$ 924.3 MM (32.4%)
5.9 MILLIONS FOLLOWERS
CHANNEL AND % REVENUE
O F MM EX
#15 #437 #1.284 #23
6% 52% 13% 0,8%
8
1995
FASHION
UP TO DATE
BOLD
PROVOCATIVE
18 – 40 YEARS
WEB GROSS REVENUE
R$ 170.1 MM (23,5%)
RETAIL PRICE POINT
R$ 380.00 / PAIR
GROSS REVENUE
R$ 722.7 MM (25.3%)
4.5 MILLIONS FOLLOWERS
99
CHANNELS AND % REVENUE
O F MM EX USA
#20 #62 #1,048 #39 #3
10% 11% 25% 2% 27%
9
2004
FREE TO BE
CLASSICS
SOCIAL COMFORT
MADE IN BRAZIL
0 – 50 ANOS
WEB GROSS REVENUE
R$ 137.4 MM (27%)
RETAIL PRICE POINT
R$ 170.00 / PIECE
GROSS REVENUE
R$ 507 MM (17.8%)
1,6 MILLION FOLLOWERS
10
CHANNELS AND % REVENUE
O F MM
#83 #45 #869
49% 6% 16%
*ACQUIRED AT DEC/20
1966
OFF THE WALL
ACTION SPORTS
LIFESTYLE
STREET CULTURE
16 – 24 YEARS
WEB GROSS REVENUE
R$ 74.6 MM (26%)
RETAIL PRICE POINT
R$ 290.00 / PIECE
GROSS REVENUE
R$ 290.7 MM (10.2%)
721K FOLLOWERS
1111
CHANNELS AND % REVENUE
O F MM
#7 #9 #1,305
12% 6% 56%
11
2008
POP
FLAT SHOES
AFFORDABLE
COLORFUL
12 – 60 YEARS
WEB GROSS REVENUE
R$ 52.2 MM (21,2%)
RETAIL PRICE POINT
R$ 140.00 / PAIR
GROSS REVENUE
R$ 265.4 MM (9.3%)
1.5 MILLION FOLLOWERS
1212
CHANNELS AND % REVENUE
O F MM EX
#3 #192 #1,615 #8
3% 35% 39% 1%
12
2009
DESIGN
EXCLUSIVITY
IDENTITY
SEDUCTION
20 – 45 YEARS
WEB GROSS REVENUE
R$ 7 MM (7%)
RETAIL PRICE POINT
R$ 1,500.00 / PAIR
GROSS REVENUE
R$ 102.0 MM (3.6%)
355K FOLLOWERS
1313
CHANNEL AND % REVENUE
O MM USA
#8 #20 #2
29,5% 3% 60%
13
2015
CASUAL
YOUNG
URBAN
MODERN
15 – 30 YEARS
WEB GROSS REVENUE
R$ 9.3 MM (35%)
RETAIL PRICE POINT
R$ 320.00 / PAIR
GROSS REVENUE
R$ 26.6 MM (1.1%)
292K FOLLOWERS
1414
CHANNELS AND % REVENUE
F O MM
#1 #2 #308
2% 13% 49%
14
2018
CONFORT
WELLNES
BEAUTY
SELF CARE
30 – 60 YEARS
WEB GROSS REVENUE
R$ 4.4 MM (37,4%)
RETAIL PRICE POINT
R$ 230.00 / PAIR
GROSS REVENUE
R$ 11,7 MM (0.4%)
78,7K FOLLOWERS
1515
CHANNELS AND % REVENUE
O F MM
#2 #3 #134
17% 6% 38%
15
MULTIPLE DISTRIBUTION CHANNELS
FLEXIBLE PLATFORM THROUGH DIFFERENT DISTRIBUTION CHANNELS WITH DIFFERENTIATED
STRATEGIES, MAXIMIZING THE RETURN TO THE COMPANY
GROSS REVENUE BREAKDOWN BY CHANNEL
1. WITHOUT STORE OVERLAP BETWEEN BRANDS (INCLUDING RESERVA GROUP)
2. LTM
BROAD
DISTRIBUTION
NETWORK
THROUGHOUT
BRAZIL
140 OWNED
STORES IN
BRAZIL
4,616 MULTIBRAND1
CLIENTS IN MORE
1,704 CITIES
749
FRANCHISES
ON MORE
THAN 270
CITIES
+ +
16
FRANCHISESOWNED
STORESMULTIBRAND
437 15 1.285
62 20 1.048
192 3 1.615
- 8 20
1 2 308
3 2 134
9 7 1.305
45 83 869
17
BUSINESS MODEL
UNIQUE BUSINESS MODEL IN BRAZIL
FOCUS ON THE CUSTOMER: WE SEEK TO ANTICIPATE THE CONSUMPTION DESIRE OF BRAZILIAN WOMEN
1
2
3
4
5
ABILITY TO
INNOVATE
NATIONAL
DISTRIBUTION
STRATEGY
FAST AND
EFFICIENT
SUPPLY CHAIN
SOLID MARKETING
AND
COMMUNICATION
PROGRAM
EXPERIENCED
MANAGEMENT WITH
INCENTIVES BASED
ON RESULTS
R&D
COMMUNICATION
AND MARKETING
SOURCING & LOGISTICS
MULTICHANNEL
MANAGAMENT
BRANDS OS REFERENCE
18
COMMUNICATION AND MARKETING PLAN
EACH BRAND HAS AN INTEGRATED AND EXPRESSIVE COMMUNICATION STRATEGY, FROM THE
CREATION OF CAMPAINGS TO THE POINT OF SALES
STRONG PRESENCE IN SOCIAL, DIGITAL, AND PRINT MEDIA LIVE MARKETING AND EXPERIENCE AT POINT OF SALE
OVER 14 MILLIONS FOLLOWERS
OVER 4 MILLIONS MONTHLY WEBSITE ACCESSFASHION AND BEHAVIOR EVENTS
CUSTOMIZED CONTENT FOR DIFFERENT CLIENTSINTERNACIONAL CELEBRITIES ENDORSEMENT
AND STRONG PRESENCE IN THE PRESS
19
DIGITAL COMMUNICATION PUBLIC RELATIONS
STORES ARE CONSTANTLY CHANGED TO INCORPORATE THE CONCEPT OF EACH NEW
COLLECTION, RESULTING IN A HIGHER LEVEL OF DESIRE-DRIVEN PURCHASES
FLAGSHIP STORESSTORES LAYOUT & VISUAL MERCHANDISING
CAMPAINGS
COMMUNICATION & MARKETING REFLECTED IN EVERY
ASPECT OF THE STORES
20
FLEXIBLE PRODUCTION PROCESS
AREZZO’S SCALE AND STRUCTURE GIVES FLEXIBILITY TO SOURCE A LARGE
NUMBER OF SKU’S FROM VARIOUS FACTORIES ON A SHORT TIME WITH
COMPETITIVE PRICES
OWNED FACTORY WITH CAPACITY TO PRODUCE 1,1MM PAIRS PER
YEAR AND A STRONG RELATIONSHIP WITH VALE DOS SINOS
PRODUCTION CLUSTER - THE MAIN OUTSOURCING REGION
FLEXIBLE SOURCING MODEL GAINS OF SCALE
JOINT PURCHASESCERTIFICATION AND AUDITING OF SUPPLIERS
IN-HOUSE CERTIFICATION AND AUDITING ENSURE QUALITY AND
PUNCTUALITY (ISO 9001 CERTIFICATION IN 2008)
COORDINATION OF RAW MATERIAL NEGOTIATION WITH SUPPLIERS
NEW DISTRIBUTION CENTER – ESPIRITO SANTO STATE
AGILITY, FLEXIBILITY AND SCALABILITY OF PRODUCTION ENSURE THE GROWTH EXPECTED
BY AREZZO&CO
CONSOLIDATION AND SIMULTANEOUS DISTRIBUTION IN NATIONAL
SCALE
RECEPTION:
100.000
UNITS/ DAY
PICKING:
150.000 UNITS/
DAY
STORAGE:
100.000
UNITS/ DAY
BILLING AND
LABELING:
200.000 UNITS/
DAY
OUTSOURCING: 90% OF PRODUCTION OUTSOURCED AND
10% IN AREZZO&CO FACTORIES
21
ALEXANDRE BIRMAM – CIDADE JARDIM / SP
AREZZO – MORUMBI / SP SCHUTZ – OSCAR FREIRE / SP ANACAPRI – OSCAR FREIRE/ SP
VANS – PÁTIO SAVASSI / BH
22RESERVA – RIO SUL/ RJ
OWNED STORES ARE ESSENTIAL TO DEVELOP RETAIL KNOW-HOW AND INCREASE
BRANDS’ VISIBILITY IN REGIONS LIKE SÃO PAULO
FLAGSHIP STORES IN KEY BRAZILIAN LOCATIONS
STRUCTURE APPLIED TO RETAIL IN ORDER TO ACHIEVE BETTER SALES AND MARGIN RESULTS
AS WELL AS TO INTEGRATE AND CONNECT ALL MONOBRAND STORES’ BACK OFFICE
TRAINING AND MOTIVATIONAL
STRONG FOCUS ON FRANCHISE AND OWNED STORE PERFORMANCE
ALL SALES TEAM (4,000+ PEOPLE) GET CONNECTED THROUGH A NATIONAL BROADCAST FOR THREE SALES CONVENTIONS PER
YEAR, CREATING AN ALIGNED SALES PITCH AND A GREAT SENSE OF MOTIVATION BEFORE EACH SEASON
LARGE SERVICE PROGRAM TO ASSIST FRANCHISEES ON SALES AND PROFITABILITY GOALS
RECURRING TRAINING PROGRAMS IN PRODUCTS, FASHION TRENDS, SALES TECHNIQUES, STORE MANAGEMENT, IT, AMONG OTHERS
STRONG VISUAL MERCHANDISING, TRADE MARKETING, AMBIANCE INVESTMENTS AND TRAINING
23
EFFICIENT MANAGEMENT OF THE FRANCHISE NETWORK
MODEL ALLOWS FAST EXPANSION WITH LOW INVESTED CAPITAL
SUCCESSFUL PARTNERSHIP: “WIN – WIN” FRANCHISE CONCENTRATION PER OPERATOR
(NUMBER OF OPERATORS PER NUMBER OF FRANCHISES HELD)
NOTES:
1. 96% OF THE CURRENT FRANCHISEES INDICATED THEY WOULD BE INTERESTED IN OPENING
A FRANCHISE IF THEY DID NOT ALREADY HAVE ONE
2. FOR A REGULAR AREZZO BRAND STORE, WITH EXPECTED ANNUAL SALES OF R$ 2,2
MILLION, THE AVERAGE INVESTMENT IS APPROXIMATELY R$ 670 THOUSAND, INCLUDING
STORE CAPEX, FRANCHISE FEE, WC AND INITIAL INVENTORY)
INTENSE RETAIL TRAINING
ONGOING SUPPORT: AVERAGE OF 6 STORES/ CONSULTANT AND
AVERAGE OF 22 VISITS PER STORE/ YEAR
STRONG RELATIONSHIP WITH AND ONGOING SUPPORT TO
FRANCHISEE
IT INTEGRATION WITH OUR FRANCHISES AMOUNTS TO 100%
AS MONO-BRAND STORES, FRANCHISES REINFORCE BRANDING IN
EACH CITY THEY ARE LOCATED
5-YEAR CONTRACT AND AVERAGE PAYBACK OF 36-48 MONTHS (2)
96% SATISFACTION OF FRANCHISEES (1)
SEAL OF EXCELLENCE FROM ABF (BRAZILIAN ASSOCIATION OF
FRANCHISING)
24
1 FRACHISE62%
2 FRANCHISE22%
3 FRANCHISES8%
4 OR MORE FRANCHISES
8%
423
472
2.646
4.236
–
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1.000
1.050
1.100
1.150
1.200
1.250
1.300
1.350
1.400
1.450
1.500
1.550
1.600
1.650
1.700
1.750
1.800
1.850
1.900
1.950
2.000
2.050
2.100
2.150
2.200
2.250
2.300
2.350
2.400
2.450
2.500
2.550
2.600
2.650
2.700
2.750
2.800
2.850
2.900
2.950
3.000
3.050
3.100
3.150
3.200
3.250
3.300
3.350
3.400
3.450
3.500
3.550
3.600
3.650
3.700
3.750
3.800
3.850
3.900
3.950
4.000
4.050
4.100
4.150
4.200
4.250
4.300
4.350
4.400
4.450
350
370
390
410
430
450
470
490
2019 2020
MULTIBRAND STORES AS TOOL FOR INCREASED CAPILARITY
MULTIBRAND STORES’ GROSS REVENUE¹ (R$ MILLIONS)
MULTIBRAND STORES WIDEN THE DISTRIBUTION NETWORK AND THE BRANDS’ VISIBILITY, RESULTING IN A STRONGER RETAIL FOOTPRINT
MULTIBRAND STORES
NOTES:
1. DOMESTIC MARKET ONLY
2. AREZZO&CO MULTIBRANDS STORES ONLY
11,5%
60,1% GREATER BRAND DISTRIBUTION NETWORK
PRESENCE IN OVER 1,497 CITIES
FAST EXPANSION AT LOW INVESTMENT AND RISK
MAIN FOCUS: INCREASE SHARE OF WALLET, THROUGH THE SALE OF
MORE BRANDS AT THE SAME POS AND ALSO HANDBAGS AS PART
OF THE MIX
IMPORTANT SALES CHANNEL FOR SMALLER CITIES AND THE
BRAZILIAN COUNTRYSIDE
SALES TEAM OPTIMIZATION: INTERNAL TEAM AND COMMISSIONED
SALES REPRESENTATIVES
IMPROVED DISTRIBUTION AND BRAND VISIBILITY
25
26
AREZZO&CO’S STRUCTURE
LUCIANA
WODZIKCORE BRANDS
FERNANDO
CALIGARISCEO (USA)
• MARKETING AND
MERCHANDISING
• RETAIL
• ECOMMERCE
• WHOLESALE
• LOGISTICS
• FINANCIAL AND IT
• HUMAN
RESOURCES
• AREZZO
• FIEVER
• ANACAPRI
• ALME
• FRANCHISING
MILENA
PENTEADOINTERNATIONAL
BRANDS
• SCHUTZ - GLOBAL
• ALEXANDRE
BIRMAN - GLOBAL
ALEXANDRE
BIRMANCCO SHOES AND
BAGS
RONY
MEISLERCEO AR&CO
(APPAREL)
CASSIANO E CISSOOPERATIONS + INDUSTRIAL
• PLANNING
• PRODUCT
ENGINEERING
• SOURCING
• INDUSTRIAL
• LOGISTICS
MARCO VIDALPEOPLE&MANAGEMENT/
EXPANSION/
SUSTAINABILITY
• PEOPLE
• MANAGEMENT
• SUSTAINABILITY
• EXPANSION
• INSTITUTIONAL
RELATIONS
• GOVERNANCE
MAURICIO BASTOSDIGITAL
TRANSFORMATION
• E-COMMERCE (OMNI)
• IT / BI
• DIGITAL
TRANSFORMATION
• CRM
ALEXANDRE
BIRMANGLOBAL CEO/CCO
BUSINESS MODEL
• NEW FORMAT OF PROCESS MANAGEMENT AND
BUSINESS DEVELOPMENT: LIGHTER AND MORE AGILE
• INDEPENDENT DNA AND MANAGEMENT FROM THE
BRANDS
• INNOVATION IN EXPERIENCES AND CONNECTION WITH
CLIENTS
• AREZZO&CO’S CULTURAL PILLARS :
1. AMBITION, BIG DREAM
2. FOCUS ON THE CLIENT, ENGAGEMENT, PASSION
3. TEAM AUTONOMY: AGAINST INCUMBENCE
RAFAEL SACHETEADM/FINANCIAL,
STRATEGY/M&A/
INVESTOR’S RELATIONS
• FINANCIAL
ADMINISTRATION,
ACCOUNTING
• LEGAL
• RISKS
• VANS
• EXPORT
• STRATEGY
• BUSINESS DEVELOPMENT
• INVESTORS RELATIONS
• ZZ VENTURES
HIGH ENGAGEMENT WITH STRATEGIC PLANNING OF AREZZO&CO
BOARD OF DIRECTORS
ALESSANDRO
CARLUCCI
JOSÉ
BOLOGNAALEXANDRE
BIRMAN
JULIANA
BUCHAIM
• GRADUATED FROM
FGV IN BUSINESS
MANAGEMENT;
• HE HEADED
NATURA UNTIL 2014;
• CURRENT
CHAIRMAN OF THE
BOARD, MEMBER
SINCE 2017.
• GRADUATE DEGREE FROM PUC
IN BUSINESS MANAGEMENT
AND PSYCHOLOGY;
• FOUNDER AND CEO OF ETHOS
SHAREWOODS;
• AUTHOR, CONSULTANT AND
LECTURER;
• SIX TENURES AT AREZZO&CO.
• GRADUATED FROM USP IN
BUSINESS MANAGEMENT;
• PARTNER AND MANAGER OF
SUMAUMA CAPITAL;
• MEMBER OF IBGC’S
INNOVATION COMMISSION;
• OVER 22 YEARS OF
EXPERIENCE IN THE
FINANCIAL MARKET
• GRADUATED FROM FUMEC;
• CEO OF AREZZO&CO SINCE
2013;
• OVER 25 YEARS OF
EXPERIENCE IN THE
FOOTWEAR MARKET;
• FOUNDER OF FOUR BRANDS
OF THE AREZZO7CO
PORTFOLIO.
GUILHERME
FERREIRA
RENATA
VICHI
RONY
MEISLER
• GRADUATED FROM FIAM IN
ADVERTISING;
• CEO OF CRM GROUP -
KOPENHAGEN, BRASIL
CACAU AND KOP COFFEE;
• EXPERIENCE IN MARKETING,
COMMERCIAL AND
EXPANSION AREAS.
• GRADUATED FROM PUC
IN PRODUCTION
ENGINEERING;
• FOUNDER AND CEO OF
GRUPO RESERVA.
• GRADUATED FROM USP
IN PRODUCTION
ENGINEERING;
• MEMBER OF THE BOARD
OF DIRECTORS OF B3;
• NOW AT AREZZO&CO
FOR FIVE CONSECUTIVE
TENURES.
NEW MEMBERS
28
STRATEGY AND
DIGITALIZATION
STRATEGIC MAP – PILLARS AND LEVERS
OUR 7 PILLARS OF OPERATION WILL REMAIN THE SAME AFTER THE PANDEMIC, WITH THE
ADDITION OR STRENGTHENING OF SOME FRONTS
PEOPLE AND CULTURE
NEW BRANDS BRAZIL
INTERNATIONAL MARKET
USA MARKET
INSURGENT BRANDSCONSOLIDATION OF THE FASHION MARKET (AB)
TRANSFORMATION OF THE BUSINESS MODEL ENGINE 2: BUSINESS DIGITALIZATION
MERCHANDISING AND SUPPLY EVOLUTION
SOURCING AND LOGISTICS 2.0
CUSTOMER’S OMNICHANNEL EXPERIENCE
SUSTAINABILITY AS A NORM
MARKETPLACE - OWN BRANDS AND 3P
CONTENT AND SERVICES
DIGITAL RESELLERS
CIRCULAR ECONOMY
E-COMMERCE ACCELERATION
DATA AND ANALYTICS
TECHNOLOGY
GOVERNANCE
CULTURE
FRONT-LINE
EMPOWERMENT
DATA AND TECHNOLOGY
CORE GROWTH / EXPANSION OF CURRENT BRANDS
CASUAL &
DEMOCRATICFASHION & LUXURY COMFORT & FLATS ACTION SPORTS
29
30
STRATEGY
BUSINESS MODEL ALLOWS MULTIPLE GROWTH OPTIONS
SHOES
BAGS
LEATHER ACCESSORIES
OTHER ACCESSORIES
APPAREL
FEMALE
WHITE SOLE
TEENAGER
INFANT
FULL PLASTIC
MALE
CLASS A1
CLASS C1
CLASS A2
CLASS B1
CLASS B2
CLASS C2
ALME
SCHUTZ
FIEVER
ALEXANDRE BIRMAN
ANACAPRI
AREZZO
VANS
OTHERS BRANDS / LICENSING
BRAZIL
NORTH AMERICA
LATAM
EUROPE
MIDDLE EAST
FRANCHISES
MULTI-BRAND
OWNED STORES
EXPORTS
ONLINE
OUTLETS
DEPT. STORES
KIOSKS
BRANDS
CATEGORIES
SEGMENT
POSITIONING
GEOGRAPHY
CHANNELS
CORE
ADJACENCIES
SUPER APP
CURRENT BRANDS
– AREZZO
– SCHUTZ
– ANACAPRI
– ALME
– FIEVER
– VANS
INCUBATED
BRANDS
COMPLEMENTARY
BRANDS IN SHOES
AND HANDBAGS
OTHER CATEGORIES
– ACCESSORIES
– CLOTHING
– BEAUTY
– HOME&DECOR
SERVICES
SERVICES OFFERING
RENT AND RESALE,
REPAIRING
FASHION CONSULTING,
FASHION & RETAIL LEARNING
SOCIAL CONECTIVITY
P2P RECOMMENDATIONS,
STYLING, CO-CREATION
CONTENT
TRENDS, FASHION
LOOKS, ETC
ECOSSYSTEM
ASSETS
PDATA ANALYTICS AND
LOYALTY ROGRAM
CUSTOMIZATION
VALORIZZA (CRM)
LOGISTICS E FLEXIBLE
FULFILLMENT OWNED OR
THROUGH 3RD PARTIESCHANNEL INTEGRATION
P2P DELIVERY
SPEED FACTORY
PAYMENTS AND
FINANCIAL
SERVICES
>10MREGISTERED
CLIENTS
MARKETPLACE
“1P” BRANDS “3P” BRANDS
A TRUE FASHION BRANDS PLATFORM: AREZZO&CO
MARKETPLACE WITH THE BEST CURATORSHIP, WITH CONTENT AND SERVICES AS PART OF
THE ECOSSYSTEM
31
MAINTAINING THE HIGH REVENUES LEVEL ATTAINED IN 2020
BUSINESS AND OPERATIONS DIGITALIZATION
R$ 681.2 M*E-COMMERCE REVENUES IN
THE LAST 12 MONTHS
70,5
55,0
47,8 50,4
67,7
60,4 57,5
44,3
53,9 53,9 54,6
65,3
JUL/20 AGO/20 SET/20 OUT/20 NOV/20 DEZ/20 JAN/21 FEV/21 MAR/21 ABR/21 MAI/21 JUN/21
174 M IN 2Q21
*REVENUES INCLUDE AREZZO&CO + AR&CO
JUL/20 AUG/20 SEP/20 OCT/20 NOV/20 DEC/20 JAN/21 FEB/21 MAR/21 APR/21 MAY/21 JUN/21
SALES LINK
5.3%
TOTAL OMNICHANNEL:
SHARE OF SALES: 47.0%
RESULT: 47% OF SALES DRIVEN BY DIGITALSHARE OF BRICK-AND-MORTAR STORES’ SELL OUT – 2Q21
4.7%4.2%
SALESPERSON
APP
32.7%
CLICK AND
COLLECTINFINITE SHELF /
COUPON
AREZZO&CO AND AR&CO DIGITAL REVENUES (EX- WEB)
47.0% OF BRICK-AND-MORTAR STORES’ 2Q21
SELL OUT
57.4% OF BRICK-AND-MORTAR STORES’ 2Q21
SELL OUT
AREZZO&CO
AR&CO R$ 625.2 M
REVENUES FROM DIGITAL TOOLS + SALESPERSON APP IN
THE LAST 12 MONTHS
PRODUTOS DIGITAISAMPLE OPPORTUNITY TO SCALE UP OUR DIGITAL ARSENAL
67%
33%
62%
38%
54%
46%
55%
45%
61%
39%
74%
26%
76%
24%
74%
26%
70%
30%
88%
12%
89%
11%
83%
17%45% 39% 26% 24% 26% 30% 12% 11% 17% 22% 19% 19%
24,0 28,6
37,6 42,9
54,1
96,9
38,8 46,2
50,6
56,7
78,5
70,3
JUL/20 AGO/20 SET/20 OUT/20 NOV/20 DEZ/20 JAN/21 FEV/21 MAR/21 ABR/21 MAI/21 JUN/21
205 M IN 2Q21
JUL/20 AUG/20 SEP/20 OCT/20 NOV/20 DEC/20 JAN/21 FEB/21 MAR/21 APR/21 MAY/21 JUN/21
35
US OPERATION
2013
2014
2015
2016
2017
2018
• NY STORE
LAUNCH
• ATTEMPTED
TO WORK
WITH
DEPARTMENT
STORES.
• E-COMMERCE
LAUNCH
• OUT FROM
DEPARTMENT
STORES
• RETURN TO
ONLINE
DEPARTMENT
STORES
• LAUNCH OF THE
LOS ANGELES
STORE
• NEW SHOWROOM
• RETURN DEPARTMENT
STORES
• INTEGRATED E-
COMMERCE
• AVENTURA MALL
STORE OPENING
• HOME DROPSHIP
WITH WHOLESALE
• OPENINGS OF
MADISON AVENUE &
BAL HARBOR STORES
• HOME DROPSHIP
WITH WHOLESALE
• WHOLESALE
START
WITHOUT A
SHOWROOM
• SHOWROOM
NY
• LINE
OPENING
FOCUSED ON
OWN
FACTORY
• DELIVERY
IMPROVEMENT
• CLARITA
LAUNCH
• GROWTH
DEPARTMENT
STORES
• CLARITA BECOMES A
STAR PRODUCT
• ACHIEVEMENT
OF BREAKEVEN
IN 3Q20
TIMELINE US OPERATIONS
20122020
• NEW PRICING
STRATEGY IN
THE
OPERATION
36
1 DAY
FACTORY TO
THE AIRPORT 1 DAY
AIRPORT
BOARDING
2 TO 4 DAYS
GROUND
TRANSPORTATION
SHIPPING COST
USD PER PAIR
1 DAY
DC
2 DAYS
CUSTOMS
RELEASE
US OPERATIONSLEADTIME AS OUR GREATEST COMPETITIVE ADVANTAGE
BRAZILIAN MODEL: 3 TO 4 WEEKS OF PRODUCT REFUELING
BRAZIL
USA
BRAZIL USAADDITIONAL LEAD TIME: 6 TO 8 DAYS
37
SALES VOLUME BY PRICE RANGE*
19,6%
31,8%
22,8%
11,0%
8,9%
3,7%
1,6%
0,4%
0,2%
< $24.99
$25 - $49.99
$50 - $74.99
$75 - $99.99
$100 - $149.99
$150 - $199.99
$200 - $249.99
$250 - $299.99
> $300
AVERAGE PRICE
> 300
>75
100
150
200
$ 40 M$ 200 M
$ 1,5 B
$ 130 M
*NPD GROUP RESEARCH
$ 300 M
US OPERATIONS
INCREASED EDGE AND EXPANSION OF ADDRESSABLE MARKET
66.2% INCREASE IN ADDRESSABLE MARKET
PREVIOUS CURRENT
PLAYER’S ESTIMATED REVENUE (IN USD)$ 1,5 B
38
1,6 1,42,1 2,2
2,9 3,22,8
3,03,5
2,8
4,6 4,75,0
5,4
7,0 7,1
9,5 9,4
JAN FEV MAR ABR MAI JUN
2019 2020 2021
US OPERATION
+201.7%REAISVS 2Q19
+121.5%DÓLARES
VS 2Q19
WEB-COMMERCE STRONG
GROWTH
GROSS REVENUES
+93,3% IN JUNE
+90.0% IN JULY
2Q21 GROSS REVENUES OF
R$ 73.6 M, +51.3% VS 2019
EBITDA BREAKEVEN MAINTAINED,
WITH R$ 2.5 M POSITIVE RESULT IN
2Q21
RECORD REVENUESON SCHUTZ’S ONLINE
CHANNEL IN MAY AND JUNE
40
FINANCIAL HIGHLIGHTS
¹OTHER: INCLUDES RESERVA, A. BIRMAN, FIEVER AND ALME BRANDS ONLY IN THE INTERNAL MARKET AND OTHER NON-SPECIFIC BRAND REVENUE.
²OTHER: INCLUDES BRAND REVENUES THAT ARE NOT SPECIFIC TO DISTRIBUTION CHANNELS.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
GROSS REVENUE BREAKDOWN BY BRAND
DOMESTIC MARKET (R$ MILLION)
GROSS REVENUE BREAKDOWN BY CHANNEL
DOMESTIC AND EXTERNAL MARKET (R$ MILLION)
41
738804
874951 984
761
81191
467458
451443
474
428
59
119
143
93119
157
220
259
218
23
60
232
34
85
9
21
42
65
88 159
25
1.307
1.402
1.524
1.679
1.805 1.797
207
623
-
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
2015 2016 2017 2018 2019 2020 2T20 2T21
AREZZO SCHUTZ AR&CO ANACAPRI VANS OUTROS
CAGR: 6,6%
200,7%
128 152 154 187259 225
22 83
638686 748
831
899
562
145
305304
344
384
423
472
182
292301
299
299
266
236
118
69
108
129
163
215
526
149
175
1.435
1.554
1.679
1.866
2.064 2.022
229
706
(3.000)
(2.000)
(1.000)
–
1.000
2.000
3.000
–
500,0
1.000,0
1.500,0
2.000,0
2.500,0
2015 2016 2017 2018 2019 2020 2T20 2T21
MERCADO EXTERNO FRANQUIA MULTIMARCA
LOJAS PRÓPRIAS WEB COMMERCE OUTROS
Total
CAGR: 7,1%
202,2%
2Q20 2Q21
2Q20 2Q21
194
367 412
572 679
860 963
1.053 1.121
1.239 1.360
1.527
1.679 1.613
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
FINANCIAL AND OPERATIONAL HIGHLIGHTS
GROSS PROFIT EVOLUTION (R$ MILLION) AND GROSS MARGIN (%) NET PROFIT EVOLUTION (R$ MILLION) AND NET MARGIN (%)
EBITDA EVOLUTION (R$ MILLION) AND EBITDA MARGIN (%) NET REVENUES EVOLUTION (R$ MILLION)
* ADJUSTED RESULTS (EXCLUDING NON-RECURRING EFFECTS). 42
89.4%12.3%
38.7%
18.8%26.7%
11.9%9.3%
6.4%10.6%
9.8%
12.2%
10.0% (4.0%)
CAGR: 17.7%
476 549
624
711 776 766
91
298
42,5%44,3% 45,8% 46,6% 46,2% 47,5%
–
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
50,0%
–
100
200
300
400
500
600
700
800
900
1.000
2015 2016 2017 2018 2019 2020 2T20 2T21
LUCRO BRUTO MARGEM BRUTA
+197 BPS
120 116
154143 141
87
-31
47
10,7%
8,5%
10,1%
8,5% 8,4%
5,4%
8,6%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
10,0%
11,0%
12,0%
-50,0
-
50,0
100,0
150,0
200,0
250,0
2015 2016 2017 2018 2019 2020 2T20 2T21
LUCRO LÍQUIDO MARGEM LÍQUIDA
+2621 BPS
165177
206
232
269
227
6
84
14,8% 13,0% 15,2% 15,2% 16,0% 14,1%
3,2%
15,2%
-70,0%
-60,0%
-50,0%
-40,0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
0,0
50,0
100,0
150,0
200,0
250,0
300,0
350,0
2015 2016 2017 2018 2019 2020 2T20 2T21
EBITDA MARGEM EBITDA
+1206 BPS
+226,1% +252,6%
+1414%
2Q20 2Q21
2Q20 2Q21
FINANCIAL AND OPERATIONAL HIGHLIGHTS
AREZZO&CO HAS A SOLID BALANCE SHEET WITH A HEALTHY NET CASH POSITION, COUPLED WITH
A STRONG ABILITY TO GENERATE OPERATING CASH FLOW AND DIVIDEND PAYMENTS
R$386MM -0,3X 20,8% 100% 4,5%
AREZZO&CO REINFORCED
ITS CASH POSITION
THE COMPANY CONTINUES
WITH A STRONG BALANCE
SHEET
GROWTH OF NOPAT AND
IMPROVEMENT OF
WORKING CAPITAL
CONSISTENT DISTRIBUTION
OF DIVIDENDS
AREZZO&CO GENERATED
R$ 252 MM IN OPERATING
CASH FLOW (LTM)
¹OPERATING CASH FLOW YIELD = LTM OPERATING CASH FLOW / FIRM VALUE. CONSIDERED FIRM VALUE OF R$ 6,916 MM (AS THE AVERAGE FROM 01/07/2020 TO 30/06/2021).
CASH POSITION
(2Q21)
NET DEBT/
EBITDA (2Q21)
ROIC
(2020)
DIVIDEND
PAYOUT (2020)
OPERATING CASH
FLOW YIELD (LTM)¹
43
FINANCIAL AND OPERATIONAL HIGHLIGHTS
INDEBTEDNESS
OPERATIONAL INDICATORS CAPEX
TOTAL INDEBTEDNESS OF R$
509.5 MILLION IN 2Q21 VS R$
601.4 MILLION IN 2Q20;
-0.3X NET DEBT/EBITDA IN
2Q21 VS -0.2X IN 2Q20.
44
(1) CONSIDERS GARMENTS SOLD BY THE VANS AND GRUPO RESERVA BRANDS
(3) SSS (SAME-STORE SALES): STORES ARE INCLUDED IN COMPARABLE STORE SALES AS OF THE 13TH MONTH OF OPERATION.
* INCLUDES OVERSEAS STORES
CASH POSITION AND INDEBTEDNESS 2Q21 1Q21 2Q20
CASH 385.921 570.746 565.619
TOTAL DEBT 509.496 663.892 601.347
SHORT-TERM 216.587 364.786 292.424
% TOTAL DEBT 42,5% 54,9% 48,6%
LONG-TERM 292.909 299.106 308.923
% TOTAL DEBT 57,5% 45,1% 51,4%
NET DEBT 123.575 93.146 35.728
NET DEBT/EBITDA 0,3X 0,6X 0,2X
OPERATING INDICATORS
2Q21
ADJUSTE
D
2Q20
ADJUSTE
D
Δ (%)
21 X 20 2Q19
Δ (%)
21 X 19
# OF PAIRS SOLD ('000) 3.262 1.079 202,3% 3.185 2,4%
# OF HANDBAGS SOLD ('000) 363 185 96,0% 436 -16,7%
# OF CLOTHES SOLD ('000) 962 70 1272,5% - -
# OF EMPLOYEES 3.923 2.029 93,3% 2.515 56,0%
# OF STORES* 900 741 159 696 204
OWNED STORES 145 53 92 54 91
FRANCHISES 755 688 67 642 113
OUTSOURCING (AS % OF TOTAL
PRODUCTION)86,4% 90,9% -4,5 P.P 90,3% -3,9 P.P
SSS² SELL IN (FRANCHISES) 1688,6% -90,7% 1779,3 P.P 1,3% 1687,3 P.P
SSS² SELL OUT (OWNED STORES +
FRANCHISES + WEB)76,8% -50,5% 127,3 P.P 4,1% 72,7 P.P
SUMMARY OF
INVESTMENTS2Q21 2Q20
Δ 21 X 20
(%) 1S21 1S20
Δ 21 X 20
(%)
TOTAL CAPEX 29.554 7.361 301,5% 42.099 21.436 96,4%
STORES - EXPANSION AND
REFURBISHING11.125 955 1.064,9% 14.930 4.907 204,3%
CORPORATE 16.877 5.831 189,4% 24.849 13.717 81,2%
OTHER 1.552 575 169,9% 2.320 2.812 (17,5%)
45
APPENDIX
KEY FINANCIAL INDICATORS
46
KEY FINANCIAL INDICATORS 2Q21 2Q21
ADJUSTED
2Q20
ADJUSTED
Δ (%)
21 X 20
2Q19
ADJUSTED
Δ (%)
21 X 19
GROSS REVENUES 705.627 705.627 233.520 202,2% 489.482 44,2%
NET REVENUES 552.976 552.976 175.990 214,2% 393.546 40,5%
COGS (260.004) (255.171) (84.679) 201,3% (209.215) 22,0%
DEPRECIATION AND AMORTIZATION (COST) (746) (746) (817) (8,7%) (743) 0,4%
GROSS PROFIT 292.972 297.805 91.311 226,1% 184.331 61,6%
GROSS MARGIN 53,0% 53,9% 51,9% 2,0 P.P 46,8% 7,1 P.P
SG&A (104.000) (237.790) (104.826) 126,8% (142.801) 66,5%
% OF NET REVENUES (18,8%) (43,0%) (59,6%) 16,6 P.P (36,3%) (6,7 P.P)
SELLING EXPENSES (157.110) (155.744) (61.968) 151,3% (84.011) 85,4%
OWNED STORES AND WEB COMMERCE (52.092) (52.089) (26.522) 96,4% (29.009) 79,6%
SELLING, LOGISTICS AND SUPPLY (105.018) (103.655) (35.447) 192,4% (55.002) 88,5%
GENERAL AND ADMINISTRATIVE EXPENSES (64.023) (57.374) (24.782) 131,5% (37.842) 51,6%
OTHER OPERATING REVENUES (EXPENSES) 140.533 (1.272) 180 805,9% (1.822) (30,2%)
DEPRECIATION AND AMORTIZATION
(EXPENSES)(23.400) (23.400) (18.256) 28,2% (19.125) 22,4%
EBITDA 213.118 84.161 5.558 1.414,2% 61.398 37,1%
EBITDA MARGIN 38,5% 15,2% 3,2% 12,0 P.P 15,6% (0,4 P.P)
NET INCOME 132.496 47.384 (31.048) 252,6% 35.558 33,3%
NET MARGIN 24,0% 8,6% (17,6%) 26,2 P.P 9,0% (0,4 P.P)
STORES HISTORY
47
(1) INCLUDES FOOTAGE FROM STORES ABROAD
(2) INCLUDES ELEVEN OUTLET STORES WITH A TOTAL AREA OF 2,450 M²(3) INCLUDES FOOTAGE FROM EXPANDED STORES
(4) INCLUDES 3 SCHUTZ STORES, BEING (I) NEW YORK AT MADISON AVENUE, (II) MIAMI AT SHOPPING AVENTURA AND (III) LOS
ANGELES AT BEVERLY DRIVE. IT ALSO INCLUDES 2 ALEXANDRE BIRMAN STORES, BEING (I) NEW YORK ON MADISON AVENUE AND (II)
MIAMI AT BAL HARBOR SHOPPING.
STORE INFORMATION 2Q20 3Q20 4Q20 1Q21 2Q21
SALES AREA¹,³ - TOTAL (M²) 45.544 45.012 56.461 56.906 58.199
SALES AREA - FRANCHISES (M²) 39.302 38.816 42.176 42.621 43.818
SALES AREA - OWNED STORES² (M²) 6.242 6.196 14.285 14.285 14.381
TOTAL NUMBER OF DOMESTIC STORES 730 724 890 882 889
# OF FRANCHISES 682 676 756 746 749
AREZZO 428 423 451 441 437
SCHUTZ 68 67 68 67 62
ANACAPRI 179 179 186 187 192
FIEVER 1 – 1 1 1
ALME 3 3 3 3 3
VANS 3 4 7 7 9
AR&CO - - 40 40 45
# OF OWNED STORES 48 48 134 136 140
AREZZO 9 9 12 15 15
SCHUTZ 16 16 16 17 20
ALEXANDRE BIRMAN 6 7 8 8 8
ANACAPRI 3 3 5 3 3
FIEVER 5 4 2 2 2
ALME 3 3 2 2 2
VANS 6 6 7 7 7
AR&CO - - 82 82 83
TOTAL NUMBER OF INTERNATIONAL
STORES11 11 11 11 11
# OF FRANCHISES 6 6 6 6 6
# OF OWNED STORES4
5 5 5 5 5
ABALANCE SHEET - IFRS
48
ASSETS 2Q21 1Q21 2Q20
CURRENT ASSETS 1.340.793 1.523.157 1.276.801
CASH AND BANKS 69.625 222.598 12.965
FINANCIAL INVESTMENTS 316.296 348.148 552.654
TRADE ACCOUNTS RECEIVABLES 455.695 477.929 283.071
INVENTORY 362.063 348.041 271.321
TAXES RECOVERABLE 98.945 90.134 124.430
OTHER CREDITS 38.169 36.307 32.360
NON-CURRENT ASSETS 1.414.612 1.312.474 453.891
LONG-TERM RECEIVABLES 253.659 132.552 79.656
TRADE ACCOUNTS RECEIVABLES 6.209 3.855 8.416
DEFERRED INCOME AND SOCIAL CONTRIBUTION 65.922 84.364 42.011
OTHER CREDITS 181.528 44.333 29.229
INVESTMENTS PROPERTY 4.760 2.275 3.484
PROPERTY, PLANT AND EQUIPMENT 287.324 313.409 293.326
INTANGIBLE ASSETS 868.869 864.238 77.425
TOTAL ASSETS 2.755.405 2.835.631 1.730.692
LIABILITIES 2Q21 1Q21 2Q20
CURRENT LIABILITIES 864.790 983.446 576.827
LOANS AND FINANCING 216.587 364.786 292.424
LEASE 44.375 50.749 44.836
SUPPLIERS 345.773 376.757 128.762
OTHER LIABILITIES 258.055 191.154 110.805
NON-CURRENT LIABILITIES 459.363 480.772 484.398
LOANS AND FINANCING 292.909 299.106 308.923
RELATED PARTIES 0 0 2.040
OTHER LIABILITIES 13.041 15.939 10.000
LEASE 142.844 161.669 163.435
OTHER AMOUNTS PAYABLE 5.938 4.058 0
DEFERRED TAX 4.631 0 0
CONTROLLING SHAREHOLDERS EQUITY 1.430.980 1.371.413 669.467
CAPITAL 808.715 808.715 352.715
CAPITAL RESERVE 157.939 208.866 49.330
PROFIT RESERVES 107.895 107.895 122.118
TAX INCENTIVE RESERVE 227.937 227.937 213.880
OTHER COMPREHENSIVE INCOME -4.927 -11.776 -12.165
ACCUMULATED PROFIT 133.466 29.776 -56.411
INVESTMENT LOSSES -45 0 0
TOTAL SHAREHOLDER'S EQUITY 1.431.252 1.371.413 669.467
NON-CONTROLLING INTEREST STAKE 272 0 0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 2.755.405 2.835.631 1.730.692
INCOME STATEMENT - IFRS
49
INCOME STATEMENT - IFRS 2Q21 2Q20 VAR.% 1S21 1S20 VAR.%
NET OPERATING REVENUE 552.976 154.443 258,0% 1.052.928 529.914 98,7%
COST OF GOODS SOLD (260.004) (74.283) 250,0% (510.031) (277.382) 83,9%
GROSS PROFIT 292.972 80.160 265,5% 542.897 252.532 115,0%
OPERATING INCOME (EXPENSES): (104.000) (171.328) -39,3% (312.824) (299.682) 4,4%
SELLING (172.937) (132.379) 30,6% (328.566) (249.502) 31,7%
ADMINISTRATIVE AND GENERAL EXPENSES (71.598) (38.435) 86,3% (125.031) (77.793) 60,7%
OTHER OPERATING INCOME, NET 140.535 (514) -27441,4% 140.773 27.613 409,8%
INCOME BEFORE FINANCIAL RESULT 188.972 (91.168) -307,3% 230.073 (47.150) -588,0%
FINANCIAL INCOME (18.788) (9.075) 107,0% (27.404) (9.847) 178,3%
INCOME BEFORE INCOME TAXES 170.184 (100.243) -269,8% 202.669 (56.997) -455,6%
INCOME TAX AND SOCIAL CONTRIBUTION (37.688) 17.944 -310,0% (40.397) 586 -6993,7%
CURRENT (14.615) (7.711) 89,5% (21.056) (25.743) -18,2%
DEFERRED (23.073) 25.655 -189,9% (19.341) 26.329 -173,5%
NET INCOME FOR PERIOD 132.496 (82.299) -261,0% 162.272 (56.411) -387,7%
CASH FLOW STATEMENT - IFRS
50
CASH FLOW 2Q21 2Q20 1S21 1S20
OPERATING ACTIVITIES
NET INCOME 132.496 (82.299) 162.272 (56.411)
ADJUSTMENTS TO RECONCILE THE RESULTS ACCORDING TO THE CASH
GENERATED BY OPERATING ACTIVITIES:33.779 41.713 89.390 133.421
DEPRECIATION AND AMORTIZATION 25.142 20.316 50.007 40.595
INCOME FROM FINANCIAL INVESTMENTS (4.141) (4.021) (5.700) (6.582)
INTEREST AND EXCHANGE RATE (23.160) 8.852 (4.836) 57.233
INCOME TAX AND SOCIAL CONTRIBUTION 37.688 (17.943) 40.397 (585)
OTHER (1.750) 34.509 9.522 42.760
DECREASE (INCREASE) IN ASSETS
TRADE ACCOUNTS RECEIVABLES 17.762 106.749 135.160 119.551
INVENTORY (9.858) (19.578) (74.241) (96.873)
RECOVERABLE TAXES (139.589) (16.306) (149.891) (47.117)
CHANGE IN OTHER CURRENT ASSETS 6.091 (15.566) (8.553) (41.510)
JUDICIAL DEPOSITS (7.092) (129) (17.462) (4.364)
(DECREASE) INCREASE IN LIABILITIES
SUPPLIERS (32.393) (49.496) (49.599) (2.905)
LABOR LIABILITIES 12.116 (3.061) (353) (25.134)
FISCAL AND SOCIAL LIABILITIES (13.166) 2.753 (24.758) 1.454
VARIATION IN OTHER LIABILITIES 40.430 23.185 20.178 27.969
PAYMENT OF INCOME TAX AND SOCIAL CONTRIBUTION (1.202) (1.118) (1.805) (14.000)
INTEREST PAYMENT ON LOANS (5.614) (3.949) (8.427) (5.367)
NET CASH FLOW FROM OPERATING ACTIVITIES 33.760 (17.102) 71.911 (11.286)
51
CASH FLOW STATEMENT - IFRS
CASH FLOW 2Q21 2Q20 1S21 1S20
INVESTING ACTIVITIES
SALE OF FIXED AND INTANGIBLE ASSETS 213 656 388 338
ACQUISITION OF FIXED AND INTANGIBLE ASSETS (29.554) (7.361) (42.099) (21.436)
FINANCIAL INVESTMENTS (636.730) (250.324) (1.094.197) (1.029.143)
REDEMPTION OF FINANCIAL INVESTMENTS 670.813 312.690 1.304.910 746.004
ACQUISITION OF SUBSIDIARY, NET CASH OBTAINED ON ACQUISITION 17 - (11.311) -
NET CASH USED IN INVESTING ACTIVITIES 4.759 55.661 157.691 (304.237)
FINANCING ACTIVITIES WITH THIRD PARTIES
INCREASE IN LOANS 10 50.000 65.622 455.241
PAYMENTS OF LOANS (125.622) (69.951) (177.130) (86.979)
INSTALMENT LEASE (14.524) (13.343) (36.410) (28.813)
NET CASH USED IN FINANCING ACTIVITIES WITH THIRD PARTIES (140.136) (33.294) (147.918) 339.449
FINANCING ACTIVITIES WITH SHAREHOLDERS
INTEREST ON EQUITY - - - (22.675)
RECEIVABLES (PAYABLES) WITH SHAREHOLDERS - 103 1.000 538
REPURCHASE OF SHARES (51.356) - (51.356) (2.632)
NET CASH USED IN FINANCING ACTIVITIES(51.356) 103 (50.356) (24.769)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (152.973) 5.368 31.328 (843)
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - INITIAL BALANCE 222.598 7.597 38.297 13.808
CASH AND CASH EQUIVALENTS - CLOSING BALANCE 69.625 12.965 69.625 12.965
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (152.973) 5.368 31.328 (843)
CONTACTS:
IR, M&A, STRATEGY AND BUSINESS DEVELOPMENT
EXECUTIVE DIRECTOR
RAFAEL SACHETE
IR MANAGER
VICTORIA MACHADO
IR SPECIALIST
MARIA LUCIA REMIGIO
PHONE: +55 11 2132-4300
RI.AREZZOCO.COM.BR
52