2. 2
Important Disclaimer
Information contained in this document may include forward-looking statements and reflect Management’s current view
and estimates of the evolution of the macroeconomic environment, industry conditions, Company’s performance and
financial results. Any statements, expectations, capabilities, plans and assumptions contained in this document, which do
not describe historical facts, such as information about declaration of dividend payment, future direction of operations,
implementation of relevant operating and financial strategies, investment program and factors or trends affecting the
financial condition, liquidity or results of operations, are forward-looking statements, as set forth in the “U.S. Private
Securities Litigation Reform Act of 1995”, and involve several risks and uncertainties. There is no guarantee that these
results will occur. Forward-looking statements are based on several factors and expectations, including economic and
market conditions, industry competitiveness and operational factors. Any changes in such expectations and factors may
cause actual results to differ from current expectations.
The Company’s consolidated financial statements presented herein are in accordance with the International Financial
Reporting Standards - IFRS, issued by the International Accounting Standards Board - IASB, based on the audited
financial statements. Non-financial information and other operating information have not been subject to an audit by
independent auditors.
3. 3
In 2013, net revenue reached R$963.0 million, an increase of 11.9%. In the quarter, net
revenue reached R$257.6 million, growing 1.9% in the same period.
Net
Revenue
Gross margin was 44.2% in 2013, an expansion of 50 bps over 2012. In the 4Q13, gross profit
was R$114.2 million with margin in line with last year .
Gross Profit
EBITDA totaled R$159.5 million, a recurring increase of 10.9% compared to 2012. EBITDA for
4Q13 amounted R$43.6 million.
EBITDA
Arezzo&Co achieved its commitment to open 59 stores in 2013, growth of 20.0% in sales
area.
Sales Area
Expansion
2013 net profit reached R$110.6, growing 14.1% when compared with 2012. In the quarter, net
profit totaled R$32.7 million, an increase of 3.4%.
Net Profit
4Q13 and 2013 Highlights
4. 317.9 315.4
1,069.6
1,170.4
9.2 15.9
39.1
61.7
327.1 331.4
1,108.7
1,232.1
4Q12 4Q13 2012 2013
Domestic Market External Market
4
Gross Revenues – (R$ million)
The Company’s gross revenues amounted R$1.2 billion in 2013, 11.1% growth when comparing with 2012.
In the quarter, gross revenues reached R$331.4 million, an increase of 1.3% over the same period of last
year.
-0.8%
73.0%
1.3%
11.1%
9.4%
57.6%
Company Growth
5. 151.9 164.1
512.4
583.1
88.3 91.7
256.0
291.4
72.9 58.2
285.8
288.6
4.8 1.4
15.4
7.4
4Q12 4Q13 2012 2013
Franchise Owned Stores Multi-brand Others²
In 2013, monobrand channel (Franchises and Owned Stores) increased 13.8%. The SSS Sell Out growth
2.5% in the 4Q13.
Gross Revenue Breakdown by Channel –
Domestic Market
5
SSS Sell-out (owned stores + franchises) 2.5%
-3.7%SSS Sell-in (franchises)
1.1%
2.0%
1) Other : Decreasing 70.7% in 4Q13 and 52.2% in 2013.
n/a
12.2%
n/a
13.1%
Gross Revenue by channel – Domestic Market (R$ million)
317.9
315.4
1,069.6
1,170.4
-20.2%
8.0%
-0.8%
3.9%
9.4%
1.0%
13.8%
13.8%
6. 189.6 192.7
663.3
716.6
112.2 106.4
356.5
402.5
10.5 14.0
32.2
41.3
317.9
315.4
1,069.6
1,170.4
4Q12 4Q13 2012 2013
Arezzo Schutz Anacapri Others¹
Gross Revenue Breakdown by Brand –
Domestic Market
61) Other brands: Decreasing 58.5% in 4Q13 and 43.4% in 2013.
All the brands presented positive growth in 2013. Highlight was Anacapri brand, leveraged by 15 franchise
openings since its roll out started.
Gross Revenues by brand – Domestic Market (R$ million)
1.6%
34.0%
-5.2%
8.0%
28.3%
9.4%
12.9%
-0.8%
7. 274 296
342
403
29
45
57
5518.0
21.8
26.5
31.8
2010 2011 2012 2013
Franchises Owned Stores Total sq m
Sales area expanded 20.0% in 2013, due to 59 stores openings and enlargement of other 4 stores over
2012. Excluding outlets, sales area would have grown 17.0%.
Distribution Channel Expansion
7
1,476Multi Brands ²
Multi Brands ²
Owned Stores ¹ 17
Franchises 348
1,046
Franchises
Owned Stores ¹
40
28
2
8
Multi Brands ²
Owned Stores
936
Multi Brands ² 9
Owned Stores
15Franchises
Owned Stores and Franchises Expansion
+59
+58
+38
20.0%
21.1%
21.6%
303
341
399
458
Note: area given in thousand square meter
1) Includes 6 outlets with total area of 2,217 sqm
2) Domestic Market
8. 43.8 43.6
135.8
8.0
143.8
159.5
4Q12 4Q13 2012 2013
111.6 114.2
375.8
425.7
4Q12 4Q13 2012 2013
In 2013, gross margin reached 44.2%, an expansion of 50 bps. EBITDA amounted R$159.5 million, a
recurring increasing of 10.9% against 2012, with a practically in line EBITDA margin.
Gross Profit and EBITDA
8
-0.5%
17.3%
16.9%
16.7%
16.6%
2.2%
13.3%
44.2%
44.3%
43.7%
44.2%
Gross Profit (R$ million) EBITDA (R$ million)
10.9%
17.5%
9. 96.9
5.3
102.2
110.6
4Q12 4Q13 2012 2013
The Company’s net income totaled R$110.6 million in 2013, with 11.5% net margin. In 4Q13, net income
increased 3.4%, with a margin of 12.7%.
Net Income
9
8.2%
3.4%
12.5%
12.7%
11.9% 11.5%
Net Income (R$ million)
14.1%
31.7 32.7
10. Cash Flow
10
Arezzo&Co generated R$71.7 million of net cash flow in 2013, due to a higher operating profit.
Operating Cash Flow (R$ thousand)
Income before income tax and social contribution 41,884 43,637 4.2% 133,504 156,117 16.9%
Depreciation and amortization 2,349 3,193 35.9% 7,558 10,970 45.1%
Other (1,716) 8,250 n/a (8,395) 8,304 n/a
Decrease (increase) in assets / liabilities (31,806) (18,192) -42.8% (43,737) (57,351) 31.1%
Trade accounts receivables (7,545) (6,273) -16.9% (29,316) (38,426) 31.1%
Inventories 6,822 14,472 112.1% (19,206) (9,313) -51.5%
Suppliers (29,658) (31,256) 5.4% (1,779) (648) -63.6%
Change in other noncurrent and current assets and liabilities(1,425) 4,865 n/a 6,564 (8,964) n/a
Payment of income tax and social contribution (15,890) (22,801) 43.5% (37,708) (46,306) 22.8%
Net cash flow generated by operational activities (5,179) 14,087 n/a 51,222 71,734 40.0%
4Q13 Growth %Operating Cash Flow 4Q12 Growth % 2012 2013
11. 6.1 5.6
37.3
15.82.7
7.0
18.4
25.2
0.4
0.5
1,7
2.7
9.2
13.1
57.4
43.8
4Q12 4Q13 2012 2013
Stores Corporate Others¹
In 2013, the Company invested R$43.8 million, of which R$15.8 million were to openings and refurbishment
stores and R$25.2 million in Corporate investments. Total indebtedness reached R$98.4 million.
Capital Expenditure (CAPEX) and
Indebtedness
11
CAPEX (R$ million) Indebtedness (R$ million)
-7.4%
161.7%
-23.8%
-57.8%
37.1%
42.8%
1) Other: growth of 5.8% in 4Q13 and 63.3% in 2013.
Cash position and Indebtedness 4Q12 3Q13 4Q13
Cash 202,154 199,780 185,691
Total debt 94,084 109,042 98,418
Short term 42,843 66,930 59,835
% total debt 45.5% 61.4% 60.8%
Long-term 51,241 42,112 38,583
% total debt 54.5% 38.6% 39.2%
Net debt (108,070) (90,738) (87,273)
EBITDA LTM 135.763 159.675 159.460
Net Debt /EBITDA LTM -1.0x -0.6x -0.5x
12. Contacts
Thiago Borges
Leonardo Pontes dos Reis, CFA
Telephone: +55 11 2132-4300
ri@arezzoco.com.br
www.arezzoco.com.br
CFO and Investor Relations Officer
IR Manager
Vanessa Sorechio
Leandro Vieira
IR Specialist
IR Analyst
