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1Q12 Conference Call
May 15th. 2012
 Highlights of 1Q12 and Expectations for the Next Quarters

 Financial Performance

 Operational Performance




                                                              2
Highlights of 1Q12
          Initiatives and Achievements                            Impacts on Financial Results
 Significant sales growth versus 1Q11                   Extraordinary expenses: R$33.5 million
  • Sales growth of 25.7%                                 • Magazine Luiza and Baú’ store: R$20.3 million
  • Same store sales growth of 15.9%                      • Maia’ stores: R$13.2 million
  • E-commerce growth of 42.8%
                                                         Investments in infrastructure and expansion
 Sustainable growth                                      • 7 new stores inaugurated
  • Gross margin in line with projected level             • 5 Baú’ store were closed
  • Financial discipline (sales with no interest)         • Total investments: R$43.2 million
  • Results were in line with the projection for 1Q12           o Logistics: R$12.5 million (Louveira’s DC
                                                                   expansion concluded)
 Conclusion of Lojas do Baú integration
  • System integration concluded                         Luizacred results
  • Stores’ maturation process has just started           • Maintenance of conservative approach in the 1Q12
  • Capture of synergies initiated                        • Reduction of credit approval rate
                                                          • Participation in the rationalization of costs and
 Continuation of Lojas Maia integration process             expenses project
  • Corporate integration – April 30th
  • System integration scheduled for 2Q12                Magazine Luiza results
                                                          • The majority of non-recurring expenses planned for
 Rationalization of costs and expenses                     2012 were incurred in January and February
  • Rationalization of costs and expenses throughout      • March 2012: operational expenses were
     the company – most initiatives were already            significantly lower and below projection. generating
     implemented in January and February 2012,              positive results for the Company
     benefits for upcoming quarters

                                                                                                                   3
Expectations for the next quarters
1                                                          3
            Significant Sales Growth                                       Results – Luizacred
 Sustainable growth:                                       Stability of credit approval rate
     • Maturation of new stores                             Increase in its profitability during the 2S12
     • Internet                                                  Portfolio’s maturation and expenses’ dilution
     • Positive outlook of the Brazilian market                  Dilution of operating expenses and
        (noteworthy reduction in the basic interest rate            proportional reduction of provisions. thanks to
        to its lowest level ever)                                   the improved quality of the overdue loan
                                                                    portfolio


2                                                          4
        Lojas Maia Integration Process                                 Results – Magazine Luiza
 System integration – expected to 3Q12                     Continuing with the rationalization of costs and
 Fully integrated management – 4Q12                         expenses project
     • Dilution of administrative and logistics             Improvements of profitability – quarter versus
         expenses                                            quarter
     • Working capital and price management                 Better productivity indicators and significantly
         contributing to the increase of Lojas Maia’s        positive results in 2012.
         gross margin.




                                                                                                                      4
 Highlights of 1Q12 and Expectations for the Next Quarters

 Financial Performance

 Operational Performance




                                                              5
Gross Revenue (R$ billion)
              Retail                                                       Comments
                                                    25.0%
                                                            • Gross revenue of the Retail segment increased
                                             7.1              25.0% versus 1Q11
                                       2.1                  • Same store sales growth of 15.9% driven by:
                                                                — Stores maturation
                          1.8                                   — “Fantastic Sales”

             1.6                                     2.0
                                                            • Increase in the number of stores: from 604 in
1.6                                                           the end of 1Q11 to 730 stores in the end of
                                                              1Q12
1Q11        2Q11         3Q11         4Q11   2011   1Q12
                                                            • Consolidated gross revenue increased 25.7%
         Consolidated                                         versus o 1Q11:
                                                    25.7%
                                                                — Growth of the retail segment
                                             7.6                — Growth of the consumer financial service
                                                                   revenue of 34.7% (influenced by service’s
                                       2.3
                                                                   revenues and personal loans – recorded
                                                                   under Luizacred)
                          1.9

             1.7                                     2.1

1.7
1.1
1Q11        2Q11         3Q11         4Q11   2011   1Q12
% of growth over the same quarter of 2011

                                                                                                               6
Gross Revenue – Internet (R$ million)


             Internet                                                            Comments
                                                         42.8%

                                                                 • 42.8% increase over 1Q11. boosted by:
                                                 821.1
                                                                     — Multi-channel approach: infrastructure
                                                                       shared with other channels
                                         250.9                       — Increase in the number of SKUs (long tail)
                                                                       and improvements in product mix
                                                                     — Innovation in content
                                                                     — Investments in systems and logistics to
                           214.4
                                                                       guarantee the best customer service
                                                                       (Magazine Luiza is considered diamond by
                                                                       e-bit)
             181.7                                       248.5


174.0

1Q11         2Q11          3Q11          4Q11    2011    1Q12



  % of growth over the same quarter of 2011

                                                                                                                    7
Net Revenue and Gross Profit (R$ billion)
Net Revenue - Consolidated                                                       Comments
                                                          27.5%

                                                                  • Strong growth due to the increase of the gross
                                              6.4
                                                                    revenues (retail segment and consumer financial
                                       1.9                          service)

                          1.6                                     • Net revenue growth outpaced gross revenue
                                                                    growth. basically due to the higher volume of
             1.5                                           1.8
                                                                    products subject to tax substitution. which is
1.4                                                                 booked under COGS

1Q11       2Q11         3Q11         4Q11    2011         1Q12

  Gross Profit - Consolidated                                                    Comments
                                                          22.4%
                                              2.1                 • Retail:
                                                                    — Strong grow due to Fantastic Sales in January
                                       0.7
                                                                    — Increase in the Internet participation
                          0.5                                       — Integration of Baú stores
             0.5                                           0.6
                                                                    — Low gross margin at Lojas Maia:
0.5                                                                         o Clearance
                                                                  • Consumer Financing:
1Q11       2Q11         3Q11         4Q11    2011         1Q12
                                                                    — Reduction of CDI rate
33.2%       32.8%        32.7%       34.7%   33.4%        31.8%


% of growth over the same quarter of 2011    Gross Margin (%)

                                                                                                                      8
Operating Expenses – Consolidated (R$ million)
              Operating Expenses (R$ MM)                                           Comments

                                                                     • SG&A Expenses:
26.2%     1.0%         27.2%          26.3%      5.0%        31.3%       — Impact of the extraordinary
                                                                            expenses with new stores.
                                                                            integration of Baú. and review of
                                                 90.6        565.6          people cost expenditures
                                      475.0                              — Captures of synergies initiated as a
                                                                            result of office integration (Baú’
                                                                            stores and expenses rationalization
371.4      14.4          385.8                                       • Provisions:
                                                                         — Robust provisions (Luizacred
                                                                            conservatism)
                                                                     • Other operational expenses:
                                                                         — Impact of extraordinary expenses
                                                                            and personal loans
                                                                     • Extraordinary Expenses:
                                                                         — R$33.5 million. being R$20.3 million
SG&A    Provisions &     Total        SG&A    Provisions &   Total          at Magazine Luiza and Baú and
        other oper.                           other oper.                   R$13.2 million at Maia
         revenues                              Revenues

 1Q11        1Q12          % Net Revenue



                                                                                                                  9
Financial Expenses – Consolidated (R$ million)
               Financial Expenses (R$ MM)                      Comments

                                                • Financial Results:
                  3.2%                   2.2%       — Financial expenses declined from
                                                       3.2% of net revenue in 1Q11 to 2.2%
                                                       in 1Q12. impacted by the reduction
                  45.7
                                                       in net debt and loer CDI rate in the
                                         39.2          period
                                                    — Stable pre-paid Luiza card
                                                       receivables: R$6.2 million at 1Q11
                                                       and 1Q12. (0.3% consolidated net
                                                       revenue)
                                                    — Minimaze interest-free sales on
                                                       Luiza card. as well as limit the share
                                                       of third-party credit cards in total
                                                       sales. encouraging Luizacred sales



                 1Q11                    1Q12



 Financial Expenses      % Net Revenue




                                                                                                10
EBITDA and Adjusted EBITDA (R$ million)
                    EBITDA                                                                         Comments

                                                                                  • EBITDA impacted by:
                                                    300.6
                                                                                      — Gross margin reduction at Lojas Maia
                                       52.5
                                                                                      — Extraordinary expenses including pre
                          92.2
                                                                                        operational expenses of new stores and
             71.9                                                                       integration process
84.0                                                             9.3                  — Increase in provisions for loan losses

1Q11        2Q11          3Q11         4Q11         2011         1Q12
5.9%         4.9%         5.8%         2.7%         4.7%         0.5%


            Adjusted EBITDA
                             1Q11                                                               1Q12

   5.9%                                                5.6%              0.5%                                            2.4%


                 0.0             0.0                   78.7                                       26.0                   42.8
                                              5.4                                                             0.0
   84.0                                                                                7.5
                                                                         9.3
  Current     Extraord.    Extraord.    Deferred      Adjusted          Current             1
                                                                                    Extraord.           1
                                                                                                Extraord.   Deferred   Adjusted
              Revenues     Expenses     Revenues       EBITDA                       Revenues    Expenses    Revenues    EBITDA
 Margin EBITDA (%)

                                                                                                                                  11
Net Income and Adjusted Net Income (R$ million)
               Net Income                                                                                 Comments

                                                                                        • Net income impacted by:
                                                      11.7                                  — Gross margin reduction at Lojas Maia
              4.6          11.7         16.9
12.3                                                                                        — Extraordinary expenses including pre
                                                                                               operational expenses of new stores and
                                                                                               integration process
                                                                     -40.7                  — Deferred taxes were not accountable due
                                                                                               to Lojas Maia losses (R$8.3 million)
1Q11          2Q11         3Q11         4Q11          2011           1Q12
0.9%          0.3%         0.7%         -0.9%          0.2%          -2.3%

         Adjusted Net Income
       0.9%                   1Q11                            0.6%             -2.3%                    1Q12                     -0.6%



                     5.4                                      8.7
                                  1.8           0.0                                                     -11.4        8.3         -10.3
   12.3                                                                        -40.7
                                                                                            33.5


 Net Income Extraordinary     Taxes      Tax credits     Adjusted            Net Income Extraordinary    Taxes    Tax credits   Adjusted
                Result                  not recorded      Income                            Result               not recorded    Income

 Net Margin (%)

                                                                                                                                           12
Investiments (R$ million)

        Investiments                                                      Comments

                                              97.6           • 7 new stores inaugurated (4
                                                               conventional stores in the Northeast
                                                               and 3 virtual stores in Paraná)
                                              25.1
                                                             • Other investments include the
                                                               conclusion of the expansion of the
                                                               Louveira distribution center and other
                               50.2           37.8             investments in logistics. which totaled
                               7.5                    43.2     R$12.5 million in 1Q12.
                40.0
                                                       6.5
                7.5
                               19.3            5.8    11.0
 22.5          15.1
  6.0                                                  7.3
                               11.8
 10.0                                         28.9
                15.4                                  18.4
        2.3                    11.5
 4.2            1.9
1Q11           2Q11            3Q11           4Q11    1Q12


New Stores    Store Refit   Infrastructure   Others




                                                                                                         13
 Highlights of 1Q12 and Expectations for the Next Quarters

 Financial Performance

 Operational Performance




                                                              14
Operational Performance – Stores
            Number of Stores (unit)                                   Same Store Sales Growth (%)

                                                                              54.7%
                            + 126 stores



                                                     730     21.7% 25.6%                                        25.0%
                                           728                                                12.6% 15.9%
                             684                 1    1
                                   1       103       106
604            613           69
       1              1                                              1Q11                             1Q12
 67            69
                                                                Same Stores Sale Growth - Physical Stores
                                                                Same Store Sales Growth (includes e-commerce)
                                                                Total Retail Growth


                             614           624       623
536            543                                                          Average Age – Stores
                                                                                              Up to 1 year
                                                                                           122

                                                                                              150 1 to 2 years
                                                                                447
1Q11          2Q11          3Q11       4Q11          1Q12   More than 3 years
                                                                                             11
Site       Virtual Stores     Conventional Stores                                               2 to 3 years


                                                                                                                        15
Operational Performance – Luizacred
           Financed Mix Sales (%)            Luizacred’s Revenue (R$ MM)

             100%               100%
                                                                  +37%           1,911
                                                                                   59
             26%                                                                  237
                                32%
                                                    1,395
                                                        68
                                                  127
             32%
                                30%                                              1,141
                                                       715
             10%
                                14%

             33%
                                24%                    486                        475


             1Q11               1Q12                   1Q11                      1Q12
Cash Sales/Down Payment   CDC          Personal Loan     Luiza Card - Outside Luiza Stores
Third Party Credit Card   Luiza Card   CDC               Luiza Card - Inside Luiza Stores




                                                                                             16
Operational Performance – Portfolio’s composition
Luiza Card – Total Credit Card Base (MM)              Portfolio (R$ MM)


                                                              +38%       3,334
                                                                          141
                           4.4     4.3
                  4.2                                                     537
          4.0
 3.5                                                 2,424
                                                      371



                                                                         2,656
                                                     2,053




1Q11     2Q11    3Q11     4Q11     1Q12              1Q11                1Q12

                                           Personal Loans    CDC     Credit card




                                                                                   17
Luizacred Portfolio (R$ million)
    Portfolio Overdue        Mar 2012              Dec 2011              Sep 2011              Jun 2011              Mar 2011

Total Portfolio (R$ MM)    3,334.1   100.0%      3,334.2   100.0%      3,011.7   100.0%      2,668.3   100.0%      2,424.2   100.0%



000 to 014 days           2,754.4    82.6%      2,773.8    83.2%      2,478.2    82.3%      2,155.4    80.8%      1,890.1    78.0%
015 a 030 days              52.9        1.6%      43.2        1.3%      34.2        1.1%      78.8        3.0%      96.6        4.0%
031 a 060 days              47.8        1.4%      39.5        1.2%      36.2        1.2%      51.9        1.9%      59.7        2.5%
061 a 090 days              56.8        1.7%      64.4        1.9%      52.7        1.8%      48.4        1.8%      63.7        2.6%
091 a 120 days              46.5        1.4%      53.2        1.6%      54.0        1.8%      45.3        1.7%      66.2        2.7%
121 a 150 days              44.3        1.3%      46.4        1.4%      48.8        1.6%      47.3        1.8%      51.6        2.1%
151 a 180 days              54.4        1.6%      41.9        1.3%      51.8        1.7%      51.2        1.9%      33.5        1.4%
180 a 360 days             277.1        8.3%     271.8        8.2%     255.7        8.5%     190.0        7.1%     162.8        6.7%



Overdue from 15-90 days    157.5        4.7%     147.0        4.4%     123.2        4.1%     179.1        6.7%     219.9        9.1%
Overdue above 90 days      422.2     12.7%       413.3     12.4%       410.3     13.6%       333.8     12.5%       314.2     13.0%
Total Overdue              579.7     17.4%       560.4     16.8%       533.5     17.7%       512.9     19.2%       534.1     22.0%



Allowance for doubtful
accounts in IFRS           467.5        14.0%    469.5        14.1%    455.7        15.1%    372.9        14.0%    333.4        13.8%



Coverage (%)              111%                  114%                  111%                  112%                  106%



                                                                                                                                        18
Investor Relations
     ri@magazineluiza.com.br
     www.magazineluiza.com.br/ir




Legal Disclaimer
Any statement made in this presentation referring to the Company’s business outlook. projections and financial and operating goals
represent beliefs. expectations about the future of the business. as well as assumptions of Magazine Luiza’s management and are
solely based on information currently available to the Company. Future considerations are not a guarantee of performance. These
involve risks. uncertainties and assumptions since they refer to forward-looking events and. therefore depend on circumstances that
may not occur. These forward-looking statements depend substantially on the approvals and other necessary procedures for the
projects. market conditions. and performance of the Brazilian economy. the sector and international markets and hence are subject to
change without prior notice. Thus. it is important to understand that such changes in conditions. as well as other operating factors
may affect the Company’s future results and lead to outcomes that may be materially different from those expressed in such future
considerations. This presentation also includes accounting data and non-accounting data such as operating. pro forma financial data
and projections based on the Management’s expectations. Non-accounting data has not been reviewed by the Company’s
independent auditors.




                                                                                                                                       19
1Q12 Conference Call
May 15th. 2012

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1 q12 presentation results

  • 2.  Highlights of 1Q12 and Expectations for the Next Quarters  Financial Performance  Operational Performance 2
  • 3. Highlights of 1Q12 Initiatives and Achievements Impacts on Financial Results  Significant sales growth versus 1Q11  Extraordinary expenses: R$33.5 million • Sales growth of 25.7% • Magazine Luiza and Baú’ store: R$20.3 million • Same store sales growth of 15.9% • Maia’ stores: R$13.2 million • E-commerce growth of 42.8%  Investments in infrastructure and expansion  Sustainable growth • 7 new stores inaugurated • Gross margin in line with projected level • 5 Baú’ store were closed • Financial discipline (sales with no interest) • Total investments: R$43.2 million • Results were in line with the projection for 1Q12 o Logistics: R$12.5 million (Louveira’s DC expansion concluded)  Conclusion of Lojas do Baú integration • System integration concluded  Luizacred results • Stores’ maturation process has just started • Maintenance of conservative approach in the 1Q12 • Capture of synergies initiated • Reduction of credit approval rate • Participation in the rationalization of costs and  Continuation of Lojas Maia integration process expenses project • Corporate integration – April 30th • System integration scheduled for 2Q12  Magazine Luiza results • The majority of non-recurring expenses planned for  Rationalization of costs and expenses 2012 were incurred in January and February • Rationalization of costs and expenses throughout • March 2012: operational expenses were the company – most initiatives were already significantly lower and below projection. generating implemented in January and February 2012, positive results for the Company benefits for upcoming quarters 3
  • 4. Expectations for the next quarters 1 3 Significant Sales Growth Results – Luizacred  Sustainable growth:  Stability of credit approval rate • Maturation of new stores  Increase in its profitability during the 2S12 • Internet  Portfolio’s maturation and expenses’ dilution • Positive outlook of the Brazilian market  Dilution of operating expenses and (noteworthy reduction in the basic interest rate proportional reduction of provisions. thanks to to its lowest level ever) the improved quality of the overdue loan portfolio 2 4 Lojas Maia Integration Process Results – Magazine Luiza  System integration – expected to 3Q12  Continuing with the rationalization of costs and  Fully integrated management – 4Q12 expenses project • Dilution of administrative and logistics  Improvements of profitability – quarter versus expenses quarter • Working capital and price management  Better productivity indicators and significantly contributing to the increase of Lojas Maia’s positive results in 2012. gross margin. 4
  • 5.  Highlights of 1Q12 and Expectations for the Next Quarters  Financial Performance  Operational Performance 5
  • 6. Gross Revenue (R$ billion) Retail Comments 25.0% • Gross revenue of the Retail segment increased 7.1 25.0% versus 1Q11 2.1 • Same store sales growth of 15.9% driven by: — Stores maturation 1.8 — “Fantastic Sales” 1.6 2.0 • Increase in the number of stores: from 604 in 1.6 the end of 1Q11 to 730 stores in the end of 1Q12 1Q11 2Q11 3Q11 4Q11 2011 1Q12 • Consolidated gross revenue increased 25.7% Consolidated versus o 1Q11: 25.7% — Growth of the retail segment 7.6 — Growth of the consumer financial service revenue of 34.7% (influenced by service’s 2.3 revenues and personal loans – recorded under Luizacred) 1.9 1.7 2.1 1.7 1.1 1Q11 2Q11 3Q11 4Q11 2011 1Q12 % of growth over the same quarter of 2011 6
  • 7. Gross Revenue – Internet (R$ million) Internet Comments 42.8% • 42.8% increase over 1Q11. boosted by: 821.1 — Multi-channel approach: infrastructure shared with other channels 250.9 — Increase in the number of SKUs (long tail) and improvements in product mix — Innovation in content — Investments in systems and logistics to 214.4 guarantee the best customer service (Magazine Luiza is considered diamond by e-bit) 181.7 248.5 174.0 1Q11 2Q11 3Q11 4Q11 2011 1Q12 % of growth over the same quarter of 2011 7
  • 8. Net Revenue and Gross Profit (R$ billion) Net Revenue - Consolidated Comments 27.5% • Strong growth due to the increase of the gross 6.4 revenues (retail segment and consumer financial 1.9 service) 1.6 • Net revenue growth outpaced gross revenue growth. basically due to the higher volume of 1.5 1.8 products subject to tax substitution. which is 1.4 booked under COGS 1Q11 2Q11 3Q11 4Q11 2011 1Q12 Gross Profit - Consolidated Comments 22.4% 2.1 • Retail: — Strong grow due to Fantastic Sales in January 0.7 — Increase in the Internet participation 0.5 — Integration of Baú stores 0.5 0.6 — Low gross margin at Lojas Maia: 0.5 o Clearance • Consumer Financing: 1Q11 2Q11 3Q11 4Q11 2011 1Q12 — Reduction of CDI rate 33.2% 32.8% 32.7% 34.7% 33.4% 31.8% % of growth over the same quarter of 2011 Gross Margin (%) 8
  • 9. Operating Expenses – Consolidated (R$ million) Operating Expenses (R$ MM) Comments • SG&A Expenses: 26.2% 1.0% 27.2% 26.3% 5.0% 31.3% — Impact of the extraordinary expenses with new stores. integration of Baú. and review of 90.6 565.6 people cost expenditures 475.0 — Captures of synergies initiated as a result of office integration (Baú’ stores and expenses rationalization 371.4 14.4 385.8 • Provisions: — Robust provisions (Luizacred conservatism) • Other operational expenses: — Impact of extraordinary expenses and personal loans • Extraordinary Expenses: — R$33.5 million. being R$20.3 million SG&A Provisions & Total SG&A Provisions & Total at Magazine Luiza and Baú and other oper. other oper. R$13.2 million at Maia revenues Revenues 1Q11 1Q12 % Net Revenue 9
  • 10. Financial Expenses – Consolidated (R$ million) Financial Expenses (R$ MM) Comments • Financial Results: 3.2% 2.2% — Financial expenses declined from 3.2% of net revenue in 1Q11 to 2.2% in 1Q12. impacted by the reduction 45.7 in net debt and loer CDI rate in the 39.2 period — Stable pre-paid Luiza card receivables: R$6.2 million at 1Q11 and 1Q12. (0.3% consolidated net revenue) — Minimaze interest-free sales on Luiza card. as well as limit the share of third-party credit cards in total sales. encouraging Luizacred sales 1Q11 1Q12 Financial Expenses % Net Revenue 10
  • 11. EBITDA and Adjusted EBITDA (R$ million) EBITDA Comments • EBITDA impacted by: 300.6 — Gross margin reduction at Lojas Maia 52.5 — Extraordinary expenses including pre 92.2 operational expenses of new stores and 71.9 integration process 84.0 9.3 — Increase in provisions for loan losses 1Q11 2Q11 3Q11 4Q11 2011 1Q12 5.9% 4.9% 5.8% 2.7% 4.7% 0.5% Adjusted EBITDA 1Q11 1Q12 5.9% 5.6% 0.5% 2.4% 0.0 0.0 78.7 26.0 42.8 5.4 0.0 84.0 7.5 9.3 Current Extraord. Extraord. Deferred Adjusted Current 1 Extraord. 1 Extraord. Deferred Adjusted Revenues Expenses Revenues EBITDA Revenues Expenses Revenues EBITDA Margin EBITDA (%) 11
  • 12. Net Income and Adjusted Net Income (R$ million) Net Income Comments • Net income impacted by: 11.7 — Gross margin reduction at Lojas Maia 4.6 11.7 16.9 12.3 — Extraordinary expenses including pre operational expenses of new stores and integration process -40.7 — Deferred taxes were not accountable due to Lojas Maia losses (R$8.3 million) 1Q11 2Q11 3Q11 4Q11 2011 1Q12 0.9% 0.3% 0.7% -0.9% 0.2% -2.3% Adjusted Net Income 0.9% 1Q11 0.6% -2.3% 1Q12 -0.6% 5.4 8.7 1.8 0.0 -11.4 8.3 -10.3 12.3 -40.7 33.5 Net Income Extraordinary Taxes Tax credits Adjusted Net Income Extraordinary Taxes Tax credits Adjusted Result not recorded Income Result not recorded Income Net Margin (%) 12
  • 13. Investiments (R$ million) Investiments Comments 97.6 • 7 new stores inaugurated (4 conventional stores in the Northeast and 3 virtual stores in Paraná) 25.1 • Other investments include the conclusion of the expansion of the Louveira distribution center and other 50.2 37.8 investments in logistics. which totaled 7.5 43.2 R$12.5 million in 1Q12. 40.0 6.5 7.5 19.3 5.8 11.0 22.5 15.1 6.0 7.3 11.8 10.0 28.9 15.4 18.4 2.3 11.5 4.2 1.9 1Q11 2Q11 3Q11 4Q11 1Q12 New Stores Store Refit Infrastructure Others 13
  • 14.  Highlights of 1Q12 and Expectations for the Next Quarters  Financial Performance  Operational Performance 14
  • 15. Operational Performance – Stores Number of Stores (unit) Same Store Sales Growth (%) 54.7% + 126 stores 730 21.7% 25.6% 25.0% 728 12.6% 15.9% 684 1 1 1 103 106 604 613 69 1 1 1Q11 1Q12 67 69 Same Stores Sale Growth - Physical Stores Same Store Sales Growth (includes e-commerce) Total Retail Growth 614 624 623 536 543 Average Age – Stores Up to 1 year 122 150 1 to 2 years 447 1Q11 2Q11 3Q11 4Q11 1Q12 More than 3 years 11 Site Virtual Stores Conventional Stores 2 to 3 years 15
  • 16. Operational Performance – Luizacred Financed Mix Sales (%) Luizacred’s Revenue (R$ MM) 100% 100% +37% 1,911 59 26% 237 32% 1,395 68 127 32% 30% 1,141 715 10% 14% 33% 24% 486 475 1Q11 1Q12 1Q11 1Q12 Cash Sales/Down Payment CDC Personal Loan Luiza Card - Outside Luiza Stores Third Party Credit Card Luiza Card CDC Luiza Card - Inside Luiza Stores 16
  • 17. Operational Performance – Portfolio’s composition Luiza Card – Total Credit Card Base (MM) Portfolio (R$ MM) +38% 3,334 141 4.4 4.3 4.2 537 4.0 3.5 2,424 371 2,656 2,053 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 1Q12 Personal Loans CDC Credit card 17
  • 18. Luizacred Portfolio (R$ million) Portfolio Overdue Mar 2012 Dec 2011 Sep 2011 Jun 2011 Mar 2011 Total Portfolio (R$ MM) 3,334.1 100.0% 3,334.2 100.0% 3,011.7 100.0% 2,668.3 100.0% 2,424.2 100.0% 000 to 014 days 2,754.4 82.6% 2,773.8 83.2% 2,478.2 82.3% 2,155.4 80.8% 1,890.1 78.0% 015 a 030 days 52.9 1.6% 43.2 1.3% 34.2 1.1% 78.8 3.0% 96.6 4.0% 031 a 060 days 47.8 1.4% 39.5 1.2% 36.2 1.2% 51.9 1.9% 59.7 2.5% 061 a 090 days 56.8 1.7% 64.4 1.9% 52.7 1.8% 48.4 1.8% 63.7 2.6% 091 a 120 days 46.5 1.4% 53.2 1.6% 54.0 1.8% 45.3 1.7% 66.2 2.7% 121 a 150 days 44.3 1.3% 46.4 1.4% 48.8 1.6% 47.3 1.8% 51.6 2.1% 151 a 180 days 54.4 1.6% 41.9 1.3% 51.8 1.7% 51.2 1.9% 33.5 1.4% 180 a 360 days 277.1 8.3% 271.8 8.2% 255.7 8.5% 190.0 7.1% 162.8 6.7% Overdue from 15-90 days 157.5 4.7% 147.0 4.4% 123.2 4.1% 179.1 6.7% 219.9 9.1% Overdue above 90 days 422.2 12.7% 413.3 12.4% 410.3 13.6% 333.8 12.5% 314.2 13.0% Total Overdue 579.7 17.4% 560.4 16.8% 533.5 17.7% 512.9 19.2% 534.1 22.0% Allowance for doubtful accounts in IFRS 467.5 14.0% 469.5 14.1% 455.7 15.1% 372.9 14.0% 333.4 13.8% Coverage (%) 111% 114% 111% 112% 106% 18
  • 19. Investor Relations ri@magazineluiza.com.br www.magazineluiza.com.br/ir Legal Disclaimer Any statement made in this presentation referring to the Company’s business outlook. projections and financial and operating goals represent beliefs. expectations about the future of the business. as well as assumptions of Magazine Luiza’s management and are solely based on information currently available to the Company. Future considerations are not a guarantee of performance. These involve risks. uncertainties and assumptions since they refer to forward-looking events and. therefore depend on circumstances that may not occur. These forward-looking statements depend substantially on the approvals and other necessary procedures for the projects. market conditions. and performance of the Brazilian economy. the sector and international markets and hence are subject to change without prior notice. Thus. it is important to understand that such changes in conditions. as well as other operating factors may affect the Company’s future results and lead to outcomes that may be materially different from those expressed in such future considerations. This presentation also includes accounting data and non-accounting data such as operating. pro forma financial data and projections based on the Management’s expectations. Non-accounting data has not been reviewed by the Company’s independent auditors. 19