Celebrating 10 Years at BM&FBOVESPA
Result from financial products
Financial Products reported a result 4.2% lower when compared to 2014, mainly
due to the impact of new tax legislation and a higher level of default in the period.
Revenues, Net of Funding and Taxes, increased 17.7% compared to 2014. Even
having shown good growth, they reflected higher funding costs and the new PIS
and COFINS taxation on financial revenues, which mainly affected the Private Label
Card. Revenues from the Co-branded Card contributed positively to this result.
Credit Losses, Net of Recoveries, grew by 49.2%, a result of the higher volume of
provisions made during the year due to the good sales pace, as well as the greater
struggle from customers in general with overdue payments, a consequence of the
macroeconomic environment with increased default.
All products presented greater default percentages on the portfolios and credit
losses increased compared to 2014, however, the Company believes that
these results reflect the current environment and that the measures adopted
throughout the year should bring greater stability to 2016, which will still remain
very much in line with the Company's historical default levels.
Financial Products Operating Expenses were again diluted in
2015, with an increase of 9.8%, and reflected the Company's
various initiatives to increase productivity and operating
leverage after the initial maturity period of the Co-branded Card.
Renner Card amounted to 26 million units by the end of 2015
and represented 48.8% of all merchandising sales. In the year,
the interest-free credit plan accounted for 39.1% of total sales,
while interest-bearing 0+8 installment plan reached 9.7%.
In 2015, the Renner Card's average sales ticket was R$ 184.48
and the Company's average sales ticket was R$ 134.08 versus R$
176.28 and R$ 126.56 in 2014, respectively.
For information related to cards default, please access the
Company's Financial Statements at http://goo.gl/Meeeys.
RESULT FROM FINANCIAL PRODUCTS
CAGR (2011-2015) = 13.6%
56.6%
54.7%
52.1%
51.4%
49.7%
218
208
174
149
125
2011
2012
2013
2014
2015
RESULT FROM FINANCIAL PRODUCTS (R$ MM)
Renner Card Participation (%)
TOTAL EBITDA ADJUSTED*
CAGR (2011 - 2015) = 20.4%
20.5%
22.9%
22.7%
21.4%
20.6%
1.247
1.053
837
714
593
2011
2012
TOTAL ADJUSTED EBITDA (R$ MM)
2013
2014
2015
Adjusted EBITDA Margin (%)
Total EBITDA adjusted: retail + financial products
Total Adjusted EBITDA rose by 18.4%, in line with the sales increase recorded in the year. Total Adjusted
EBITDA Margin reached 22.9%, 0.2 p.p. higher than the previous year.
The good performance throughout the year, especially in the first half, combined with strict expense control
contributed positively to this result.
*Pursuant to Article 4 of CVM Instruction 527, the Company has chosen to show its Adjusted EBITDA, as in the above table, in order to
provide the information that best reflects the gross operational cash generation from its activities. These adjustments are based on:
a) the Stock Option Plan - corresponding to the fair value of the respective financial instruments recorded "pro rata temporis", during
the period services are rendered and offset by the Equity Capital Reserve and therefore not representing a cash outflow; b) Statutory
Participations are of a contingent nature and are related to the generation of profits pursuant to Article 187 of Law 6,404/76; and c) the
Write-off of Fixed Assets relates to the results recorded from the divestment or write-off of fixed assets, largely without a cash impact.
capital
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