MIRA INFORM REPORT

 

 

Report Date :

11.05.2013

 

IDENTIFICATION DETAILS

 

Name :

COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO

 

 

Registered Office :

Avenida Brigadeiro Luiz Antonio,3142 / 3126 / 3172 - Jardim Paulista 01402-000 - São Paulo/Sp

 

 

Country :

Brazil

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

10.11.1981

 

 

Legal Form :

Publicly Held Corporation

 

 

Line of Business :

Supermarket Chain.

 

 

No. of Employees :

160717

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

--

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Brazil

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

BRAZIL - ECONOMIC OVERVIEW

 

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. Rising inflation led the authorities to take measures to cool the economy; these actions and the deteriorating international economic situation slowed growth to 2.7% in 2011, and 1.3% in 2012. Unemployment is at historic lows and Brazil's traditionally high level of income inequality has declined for each of the last 14 years. Brazil's historically high interest rates have made it an attractive destination for foreign investors. Large capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the government to intervene in foreign exchange markets and raise taxes on some foreign capital inflows. President Dilma ROUSSEFF has retained the previous administration's commitment to inflation targeting by the central bank, a floating exchange rate, and fiscal restraint. In an effort to boost growth, in 2012 the administration implemented a somewhat more expansionary monetary policy that has failed to stimulate much growth.

Source : CIA

 


Company name

 

COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO

 

 

ADDRESSES

 

MAIN ADDRESS:

AVENIDA BRIGADEIRO LUIZ ANTONIO,3142 / 3126 / 3172 - JARDIM PAULISTA

ZIP CODE/CITY:

01402-000 - SÃO PAULO/SP

 

 

PHONE:

11 3886-0627

FAX:

11 3886-0627

E-MAIL:

cbd.ri@paodeacucar.com.br

WEB SITE:

www.paodeacucar.com.br

 

BRANCHES:

 

 

 

ADDRESS:

RODOVIA ANHANGUERA - S/Nº. - KM 17,8

ZIP CODE/CITY:

06278-000 OSASCO/SP

PHONE:

11 3693-9666

 

 

ADDRESS:

AVENIDA MARGINAL DIREITA DO TIETE,342 - VILA JARAGUÁ

ZIP CODE/CITY:

SÃO PAULO/SP

PHONE:

11 3622-2700

 

 

ADDRESS:

AVENIDA MASCARENHAS DE MORAIS,2056 - IMBIRIBEIRA

ZIP CODE/CITY:

51150-001 RECIFE/PE

CNPJ:

47.508.411/0380-48

STATE REGISTER:

029531454

 

 

ADDRESS:

ESTRADA TURISTICA DO JARAGUA,50 - JARDIM BRITANIA

ZIP CODE/CITY:

05174-480 SÃO PAULO/SP

PHONE:

11 3901-7820

CNPJ:

475.084.110-11

STATE REGISTER:

116.333.469.111

 

 

ADDRESS:

AVENIDA DR. ALBERTO JACKSON BYINGTON,2990 - VILA MENK

ZIP CODE/CITY:

06276-000 OSASCO/SP

PHONE:

11 3658-8233

 

THE COMPANY HAS OTHER BRANCH FACILITIES IN SÃO PAULO, RIO DE JANEIRO, PARANÁ, MINAS GERAIS, PERNAMBUCO, CEARÁ, MATO GROSSO, PARÁ, PARAÍBA, PIAUÍ AND DISTRITO FEDERAL.

 

 

LEGAL DATA

 

MAIN ACTIVITIES:

 

SUPERMARKET CHAIN.

 

LEGAL FORM:

PUBLICLY HELD CORPORATION

 

 

INCORPORATION DATE:

10/11/1981

REGISTER DATE:

19/11/1981

BALANCE SHEET FILING DATE:

31/12

TAX CONTRIBUTOR NUMBER(CNPJ):

47.508.411/0001-56

STATE REGISTER:

108.354.656.114

 

 

SHARE CAPITAL:

R$ 6.754.839.985,42

LAST REGISTER OF CAPITAL:

25/04/2013

 

BOARD OF DIRECTORS:

 

 

 

ENÉAS CÉSAR PESTANA NETO

PRESIDENT DIRECTOR

JOSÉ ROBERTO COIMBRA TAMBASCO

DIRECTOR

PAULO GUALTIERI

DIRECTOR

ALEXANDRE GONÇALVES VASCONCELLOS

DIRECTOR

BELMIRO DE FIGUEIREDO GOMES

DIRECTOR

ANTONIO SERGIO SALVADOR DOS SANTOS

DIRECTOR

DANIELA SABBAG

DIRECTOR

CRISTOPHE JOSÉ HIDALGO

DIRECTOR

 

 

AUTHORIZED USE OF SIGNATURE

 

THE DIRECTORS ARE AUTHORIZED TO SIGN ON BEHALF OF THE COMPANY.

 

SHAREHOLDERS / PARTNERS:

 

 

 

WILKES PARTICIPAÇÕES S/A

65,610050%

SUDACO PARTICIPAÇÕES LTDA

28,711096%

CASINO GUICHARD PERRACHON (FRANCE)

5,618038%

OTHERS

0,060715%

ANA MARIA FALLEIROS DOS SANTOS DINIZ D´AVILA

0,000001%

ABILIO DOS SANTOS DINIZ

0,000100%

 

AFFILIATES / SUBSIDIARIES:

 

 

 

NOVASOC COMERCIAL LTDA.

10,00%

SÉ SUPERMERCADOS LTDA.

100,00%

SENDAS DISTRIBUIDORA S.A.

57,43%

BARCELONA COMÉRCIO VAREJISTA E ATACADISTA S.A.

100,00%

PA PUBLICIDADE LTDA

99,99%

MIRAVALLES EMPREENDIMENTOS E PARTICIPAÇÕES S.A.

50,00%

CBD PANAMA TRADING CORP

100,00%

CBD HOLLAND B.V.

100,00%

SAPER PARTICIPAÇÕES LTDA

24,00%

XANTOCARPA PARTICIPAÇÕES LTDA

99,99%

VEDRA EMPREENDIMENTOS E PARTICIPAÇÕES S/A

100,00%

GLOBEX UTILIDADES S/A

95,46%

MANDALA EMPREENDIMENTOS E PARTICIPAÇÕES S.A.

90,00%

 

 

COMPANY'S BACKGROUND

 

THE SUBJECT WAS FOUNDED BY MR. VALENTIM DOS SANTOS DINIZ, A PORTUGUESE WHICH ARRIVED IN BRAZIL IN 1929. MR. SANTOS AS HE WAS CALLED FOUNDED IN 1948 A GROSSERY STORE NAMED PÃO DE AÇÚCAR. THAT WAS THE BEGINING OF ONE OF THE MOST IMPORTANT COMPANIES IN BRAZIL.

 

WITH THE GROWING OF THE BUSINESS OF DOCEIRA PÃO DE AÇÚCAR 4 YEARS LATER, IN 1952, THERE WAS ALREADY 2 BRANCH FACILITIES.

 

IN 1959 WAS ESTABLISHED THE FIRST SUPERMAKET STORE AND IN 1965, AFTER THE ACQUISITION OF THE SUPERMARKET CHAIN NAMED "SIRVA-SE", THE SUBJECT ALREADY HAD 11 SUPERMARKET STORES. IN THE NEXT YEAR WAS FOUNDED THE FIRST STORE OUT OF SÃO PAULO, IN THE CITY NAMED SANTOS.

 

IN 1968 THE SUPERMARKET CHAIN ALREADY HAD 64 STORES AND IT WAS CREATED THE INTERNATIONAL DIVISION IN ORDER TO ALLOW THAT THE STORES OF THE COMPANY NOW NAMED COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO (CBD) COULD BE OPENED IN PORTUGAL, ANGOLA, AND SPAIN. IN THE 70`S DECADE THE COMPANY CBD WENT THROUGH A HIGH GROWTH WITH THE ACQUISITION OF THE CHAIN OF STORES NAMED ELETRORADIOBRAZ AND WITH THE INAUGURATION OF THE FIRST STORE OF THE HIPERMARKET CHAIN NAMED JUMBO.

 

IN 1978 THE SUPERMARKET CHAINS SUPERBOM, PEG-PAG AND MERCANTIL WERE ACQUIRED BY THE SUBJECT. IN 1979 IT INAUGURATED THE STORE CHAIN NAMED MINIBOX A CHAIN OF SMALL SUPERMARKET STORES WHICH HAD AS A TARGET CLIENTS THE PEOPLE WITH A LOWER INCOME.

 

IN THE 80`S DECADE THE SUBJECT HAD THE HIGHEST GROWTH AND DIVERSIFICATION IN ITS LINE OF BUSINESS. FURTHER TO THE ACQUISITION OF 5 STORES OF THE CHAIN BAZAR 13 IT ALSO ACQUIRED 6 STORES OF MORITA CHAIN, AND IN 1980 IT WAS INAUGURATED THE TWO FIRST STORES OF SUPERBOX IN JUNDIAÍ AND IN RIO DE JANEIRO.

THE SUPERBOX CHAIN CONTROLLED BY THE SUBJECT INTRODUCED THE STANDARD OF BIG WAREHOUSES OF FOODSTUFFS WHICH HAD A HIGH SUCCESS AND IN JUST SOMETIME LATER HAD ALREADY 9 STORES.

 

IN 1989, THE SUBJECT STARTED TO CONCENTRATE ITS ACTIVITIES IN THE FIELD OF HIPERMARKETS AND INAUGURATED THE CHAIN OF STORES NAMED EXTRA WHICH HAS LARGE STORE FACILITIES AND SELL A WIDE RANGE OF PRODUCTS AND HIGH TECHNOLOGY EQUIPMENTS.

 

IN ORDER TO IMPROVE ITS EFFICIENCY AND PROFITABILITY, LOST DUE TO THE FAST GROWTH FACED IN THE PREVIOUS YEARS THE SUBJECT COMPANY AT THAT TIME NAMED CBD, IN 1990 STARTED A REENGINEERING PROCESS GUIDED BY THE CONCENTRATION OF THE CORE BUSINESS.

AFTER THE SAID PROCESS THE SUBJECT STARTED OPERATING WITH 4 STANDARDS OF STORES AND WHICH OF THEM WITH A TARGET AND A MARKET FOCUS WELL PLANNED AND NAMED PÃO DE AÇÚCAR, EXTRA, SUPERBOX AND ELETRO.

 

IN 1997, CBD HAD AS THE FOCUS THE IMPROVING OF ITS OPERATIONAL STRUCTURE AND THE EXPANSION OF ITS STORE CHAIN AND THE IMPROVING OF THE DISTRIBUTION FACILITIES WHICH FORMERLY HAD DISTRIBUTION CENTERS IN PREMISES WITH 85.000 M2 AND WERE INCREASED TO 182.000 M2. THE SAID CENTERS WERE TOO IMPORTANT FOR THE DISTRIBUTION OF PRODUCTS TO ITS CHAINS INCLUDING THOSE OF BARATEIRO CHAIN (ACQUIRED IN 1998) AND TO THE NEW STORES WHICH WERE BEING BUILT.

 

IN 1997 CBD BUILT 31 NEW STORES BEING 3 OF EXTRA CHAIN, 6 OF PÃO DE AÇÚCAR CHAIN AND 22 OF ELETRO CHAIN. FURTHERMORE IT WAS ALSO ACQUIRED 5 STORES OF THE MAMBO CHAIN (OUT OF WHICH 3 WERE TRANSFORMED INTO DIVISIONS OF PÃO DE AÇÚCAR AND THE REMAINING 2 WERE CLOSED. IT ALSO ACQUIRED 2 STORES OF IPCAL CHAIN AND THE TRADE FACILITES OWNED BY THE COMPANY PAMPLONA PAULISTA COMERCIAL DE ALIMENTOS. ALL THIS ACQUISITIONS GAVE THE SUBJECT A STRONGER PRESENCE IN THE SÃO PAULO.

 

SEVERAL OTHER ACQUISITION AND REESTRUCTURATIONS ARE NOTED IN THE NEXT PREVIOUS YEARS.

 

SUPERBOX CHAIN WAS CLOSED IN OCTOBER 1998 AND ITS 5 STORES WERE TRANSFORMED IN STORES OF EXTRA STANDARD, 2 STORES WERE TRANSFORMED TO PÃO DE AÇÚCAR STANDARD AND 1 TO THE STANDARD OF BARATEIRO. THE STORES LOCATED IN BELÉM DO PARÁ WAS CLOSED.

 

IN MAY 1998 THE SUPERMARKET CHAIN BARATEIRO WAS ACQUIRED INCREASING TO 32 THE NUMBER OF STORES OUT OF WHICH 6 WERE AFTER TRANSFORMED INTO EXTRA STORES. IN 1998 CBD ACQUIRED THE STORES OF THE CHAIN MILLO'S COMERCIAL CARAJÁS AND STARTED MANAGING THE BUSINESS OF THE 3 SUPERMARKET STORES OWNED BY SAB AND STATE-OWNED SUPERMARKET CHAIN LOCATED IN BRAZILIAN.

 

IN 1999, CBD CONTINUED ITS INVESTMENTS IN THE GROUP GROWTH AND 2 NEW STORES OF PÃO DE AÇÚCAR, 3 OF EXTRA WERE OPENED AND INVESTMENTS WERE MADE IN THE MODERNIZATION OF 22 STORES AND IN THE CHANGE OF 1 STORE OF EXTRA TO PÃO DE AÇÚCAR STANDARD. OTHER 26 STORES OF PÃO DE AÇÚCAR WERE TRANSFORMED INTO BARATEIRO STANDARD.

 

IN FEBRUARY 1999, CBD ACQUIRED THE SHARE INTEREST CONTROL OF THE SUPERMARKET CHAIN PERALTA DE SUPERMERCADOS. THE HIPERMARKET STORE THAT WERE FORMERLY OWNED BY PERALTA WAS TRANSFORMED INTO THE EXTRA STANDARD AND FROM THE 37 STORES OWNED BY PERALTA 14 WERE TRANSFORMED INTO PÃO DE AÇÚCAR STANDARD, 23 INTO BARATEIRO STANDARD ADDING A TOTAL AREA OF ABOUT 61.000 SQ. FT. TO THE GROUP PREMISES. CBD ALSO ACQUIRED THE CHAIN OF STORES GUASSU, LOCATED IN THE SEA COAST OF SÃO PAULO AND TRANSFORMED THE STORES INTO BARATEIRO STORES.

 

IN MAY, 1999, 25 STORES OF THE HIPERMARKET CHAIN PAES MENDONÇA S.A., WHICH WAS THE 7TH CHAIN REGARDING THE SALES AMOUNT OF 1998 , WERE LEASED BY THE SUBJECT. THE 20 STORES WITH PREMISES IN A TOTAL AREA OF 98.000 SQ.FT. NOW TRADE WITH THE TRADE NAME EXTRA HIPERMERCADOS, 2 STORES ARE TRADING AS BARATEIRO AND 9 STORES ARE TRADING AS PÃO DE AÇÚCAR.

 

THE PREMISES OF THE HIPERMARKET PAES MENDONÇA LOCATED INT BELO HORIZONTE, WITH A TOTAL AREA OF 12.480 SQ.FT. WERE ACQUIRED BY THE SUBJECT. IN SEPTEMBER 1999 IT WAS ALSO LEASED 2 OF THE STORES WHICH ARE OWNED BY MAPPIN LOJAS DE DEPARTAMENTO S.A. THE LEASING CONTRACT IS EFFECTIVE FOR 20 YEARS.

 

IN THE END OF 1999 CBD ACQUIRED 6 STORES OF THE SUPERMARKET CHAIN SHIBATA/MOGIANO WITH OPERATIONS IN THE EAST REGION OF SÃO PAULO WITH PREMISES OF ABOUT 19 SQ. FT. FROM THE 6 STORES 2 ARE NOW TRADING AS EXTRA HIPERMERCADOS AND 4 ARE TRADING AS BARATEIRO.

 

THE SUBJECT HAS 494 STORES LOCATED IN 11 STATES. FROM THE TOTAL STORES AMOUNT 195 TRADE AS PÃO DE AÇÚCAR, 60 TRADE AS EXTRA, 153 TRADE AS COMPREBEM - BARATEIRO, 50 AS EXTRA ELETRO AND 36 AS SÉ"

 

IN NOVEMBER 2001, SUBJECT ACQUIRED 26 STORES FROM THE SUPERMARKET CHAIN SUPERMERCADOS ABC S.A., IN THE STATE OF RIO DE JANEIRO.

 

IN JUNE 2002, SUBJECT ACQUIRED THE HYPERMARKET CHAIN "SÉ SUPERMERCADOS". THE PRICE VALUE WAS R$ 375 MILLION, INCLUDING THE ABSORPTION OF FINANCIAL LIABILITIES, WHICH AMOUNTED TO R$ 124,4 MILLION. WITH 60 STORES OPERATING IN 16 CITIES IN SÃO PAULO THE CHAIN SÉ SUPERMERCADOS REACHED AN ANNUAL GROSS REVENUE OF R$ 1 BILLION IN 2001.

 

ON MAY 03, 2005 THE DINIZ GROUP (COMPRISED BY THE SHAREHOLDERS ABILIO DINIZ, PENÍNSULA PARTICIPAÇÕES LTDA., AND OTHER DINIZ FAMILY MEMBERS THAT CONTROLS PENÍNSULA) AND THE CASINO GROUP SIGNED A JOINT-VENTURE AGREEMENT THAT ESTABLISHES A NUMBER OF TRANSACTIONS THAT RESULTED IN THE SHARED CONTROL BY CASINO GROUP AND DINIZ GROUP, OVER CBD AND THE CBD'S PARENT COMPANY. THE CASSINO GROUP AND DINIZ GROUP SUBSCRIBED 2,2 BILLION AND 30,5 BILLION OF COMMON SHARES, RESPECTIVELLY, TO THE PARENT COMPANY, WHICH HAS 65,6% OF SHARES WITH VOTING RIGHTS OF CBD, WHAT REPRESENTS 28,8% OF THE SHARE CAPITAL. THE CASSINO GROUP HOLDS 50% OF COMMON SHARES AND 68,8% OF THE SUBJECT'S PARENT COMPANY SHARE CAPITAL.THE CASSINO GROUP WILL CARRY OUT IN CASH PAYMENTS TO THE DINIZ GROUP THE AMOUNT OF US$ 200 MILLION (THAT MAY BE REINVESTED IN THE ACQUISITION OF SHARES OF CASSINO GROUP) AND US$ 1 BILLION ( THAT WILL BE USED IN THE PURCHASING OF 60 REAL ESTATE FROM CBD). THE CASSINO GROUP TRANSFERRED 12,5 BILLION OF PREFERRED SHARES FROM CBD TO THE DINIZ GROUP. THE CASSINO GROUP ALSO EXCHANGED WITH DINIZ GROUP 1,3 BILLION OF PREFERRED SHARES OF CBD BY 1,3 BILLION OF COMMON SHARES OF CBD.SHARED MANAGEMENTTHE MANAGEMENT BOARD OF CBD WILL BE FORMED BY 05 REPRESENTATIVES OF CASSINO GROUP, 05 REPRESENTATIVES OF DINIZ GROUP AND 04 INDEPENDENT COUNSELORS, JOINTLY APPOINTED BY THE CASSINO AND DINIZ GROUPS. ABILIO DINIZ WILL REMAIN AS PRESIDENT OF THE MANAGEMENT BOARD OF CBD. REAL ESTATE AND BUILDINGS COVERING 60 STORES AND ASSOCIATED SHOPPING MALLS (28 "EXTRA" HYPERMARKETS AND 32 "PÃO DE AÇUCAR" SUPERMARKETS), WITH GROSS REVENUE OF AROUND R$ 5 BILLION (APPROXIMATELLY 30,5% OF TOTAL SALES), WILL BE TRANSFERRED TO A REAL ESTATE AGENCY OF THE DINIZ GROUP. THESE PROPERTIES WILL BE TRANSFERRED ACCORDING TO THE FAIR MARKET VALUE, CURRENTLY ESTIMATED AT R$ 1.029.000.000,00 (EVALUATED BY INDEPENDENT INTERNATIONAL EXPERTS).THE CBD AND THE REAL ESTATE AGENCY WILL SIGN A LONG TERM LEASING CONTRACT, ACCORDING TO THE BRAZILIAN MARKET CONDITIONS. THE RENTALS, SPECIALLY, WILL SUM 2% OF THE GROSS REVENUE AND LEASING TERMS WILL BE 20 YEARS, WITH 02 SUBSEQUENT RENEWS OF 10 YEARS WITH OPTION TO CBD.THE SUBJECT IS THE LARGEST SUPERMARKET CHAINS OPERATING IN BRAZIL AND IS WELL-KNOWN FROM NORTH TO SOUTH OF THE COUNTRY.

 

RELEVANT FACT (DECEMBER 05, 2006):

PURSUANT TO THE DISCLOSURE OF THE RELEVANT FACT, PUBLISHED BY CBD ON MAY 04, 2005, AND ON THE STRENGTH OF STUDIES MADE AS WELL AS OF DEBATES HELD PREVIOUSLY WITHIN THE MANAGEMENTS OF BOTH CBD AND VIERI, IT WAS DECIDED FOR THE INCORPORATION OF THE NET ASSETS BELONGING TO VIERI BY CBD, TO THE EXTENT THAT SUCH OPERATION SHALL BRING BENEFITS TO CBD AND CONSEQUENTLY, TO ALL ITS SHAREHOLDERS, AS WELL AS TO VIERI'S SHAREHOLDERS, AS IT SHALL BE EVINCED TO WIT.

 

CURRENT CORPORATE STRUCTURE

CBD IS A PUBLICLY TRADED COMPANY AND ITS CAPITAL STOCK ON THIS DATE IS OF R$ 3,954,629,319.75 (THREE BILLION, NINE HUNDRED AND FIFTY-FOUR MILLION, SIX HUNDRED AND TWENTY-NINE THOUSAND, THREE HUNDRED AND NINETEEN REAIS AND SEVENTY-FIVE CENTAVOS), FULLY SUBSCRIBED AND PAID IN, DIVIDED INTO 113,771,378,433 (ONE HUNDRED AND THIRTEEN BILLION, SEVEN HUNDRED AND SEVENTY-ONE MILLION, THREE HUNDRED AND SEVENTY-EIGHT THOUSAND AND FOUR HUNDRED AND THIRTY-THREE) SHARES, OF WHICH 49,839,925,688 (FORTY-NINE BILLION, EIGHT HUNDRED AND THIRTY-NINE MILLION, NINE HUNDRED AND TWENTY-FIVE THOUSAND, SIX HUNDRED AND EIGHTY-EIGHT) ARE COMMON SHARES, AND 63,931,452,745 (SIXTY-THREE BILLION, NINE HUNDRED AND THIRTY-ONE MILLION, FOUR HUNDRED AND FIFTY-TWO THOUSAND SEVEN HUNDRED AND FORTY-FIVE) ARE PREFERRED SHARES, ALL OF WHICH BEING NOMINAL SHARES WITH NO FACE VALUE.

 

VIERI IS A CLOSELY HELD COMPANY, THE CAPITAL STOCK WHEREOF, FULLY SUBSCRIBED AND PAID IN, ON THIS DATE IS WORTH R$ 1,724,041,373.14 (ONE BILLION, SEVEN HUNDRED AND TWENTY-FOUR MILLION, FORTY-ONE THOUSAND, THREE HUNDRED AND SEVENTY-THREE REAIS AND FOURTEEN CENTAVOS) BEING DIVIDED UP INTO 20,375,000,000 (TWENTY-BILLION, THREE HUNDRED AND SEVENTY-FIVE MILLION) COMMON SHARES; AND 26,634,588,419 (TWENTY-SIX BILLION, SIX HUNDRED AND THIRTY-FOUR MILLION, FIVE HUNDRED AND EIGHTY-EIGHT THOUSAND AND FOUR HUNDRED AND NINETEEN) PREFERRED SHARES, OF WHICH 12,325,000,000 (TWELVE BILLION AND THREE HUNDRED AND TWENTY-FIVE MILLION) ARE CLASS "A" PREFERRED SHARES, AND 14,309,588,419 (FOURTEEN BILLION, THREE HUNDRED AND NINE MILLION, FIVE HUNDRED AND EIGHTY-EIGHT THOUSAND AND FOUR HUNDRED AND NINETEEN) ARE CLASS "B" PREFERRED SHARES, ALL OF WHICH BEING NOMINAL SHARES WITH NO FACE VALUE.

 

ON THIS DATE, VIERI IS THE OWNER OF 47,009,588,419 (FORTY-SEVEN BILLION, NINE MILLION, FIVE HUNDRED AND EIGHTY-EIGHT THOUSAND AND FOUR HUNDRED AND NINETEEN) COMMON SHARES ISSUED BY CBD.

 

AS RESULT OF THE CONVEYANCE TO WILKE'S CAPITAL STOCK OF THE TOTALITY OF THE SHARES ISSUED BY VIERI, WHICH ARE DIRECTLY OR INDIRECTLY OWNED BY ABÍLIO DINIZ AND BY CASINO. HEREINABOVE, WILKES BECAME THE SOLE DIRECT VIERI'S SHAREHOLDER, OWNER OF THE TOTALITY OF THE COMMON AND PREFERRED SHARES ISSUED BY VIERI.

 

RELEVANT FACT:

 

COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO ("CBD" OR "COMPANY") HEREBY ANNOUNCES TO THE MARKET THE FOLLOWING RELATED TO THE INSTALLMENT PAYMENT BY THE COMPANY'S SUBSIDIARY, MANDALA EMPREENDIMENTOS E PARTICIPAÇÕES S.A. ("MANDALA") OF THE PURCHASE PRICE OF SHARES ISSUED BY GLOBEX UTILIDADES S.A. ("GUSA").

 

1. PURSUANT TO THE SHARE PURCHASE AGREEMENT EXECUTED ON JUNE 7, 2009 BETWEEN ON THE ONE HAND, MANDALA AND KEENE INVESTMENT CORPORATION S.A., PARVEST - PARTICIPAÇÃO E ADMINISTRAÇÃO LTDA., TAMARAC INVESTMENT, LLC, BLUE SPRINGS HOLDINGS, LLC, LINNETSONG INVESTMENTS LTD., LLC AND PHILLIMORE HOLDINGS LLC (THE "GUSA'S CONTROLLING SHAREHOLDERS"), ON THE OTHER HAND AND WILKES PARTICIPAÇÕES S.A.("WILKES") AND CBD AS INTERVENING PARTIES, AS SUBSEQUENTLY AMENDED (THE "AGREEMENT"), THE PURCHASE PRICE OF SHARES ISSUED BY GUSA THEN HELD BY GUSA'S CONTROLLING SHAREHOLDERS WAS R$9.4813 PER SHARE, R$4.2942 PAID IN CASH AND R$5.871 TO BE PAID BY INSTALLMENTS IN THE 4TH ANNIVERSARY OF THE OPERATION CLOSING DATE, ADJUSTED ACCORDING TO THE CDI VARIATION, IN THE PERIOD BETWEEN THE 90TH DAY AFTER THE EXECUTION DATE OF THE AGREEMENT AND THE EFFECTIVE DATE OF PAYMENT, PRO RATA TEMPORIS (THE "CREDIT").

 

1.1. IN ADDITION, ACCORDING TO THE AGREEMENT, MANDALA HAD TO OFFER TO GUSA'S MINORITY SHAREHOLDERS (THE "GUSA'S MINORITY SHAREHOLDERS") THE RIGHT TO ADHERE TO THE TERMS AND CONDITIONS OF THE AGREEMENT, BY SELLING THEIR SHARES TO MANDALA FOR A PRICE CORRESPONDING TO 80% OF THE PURCHASE PRICE PER SHARE PAID TO GUSA'S CONTROLLING SHAREHOLDERS, IN THE AMOUNT OF R$7.5850 PER SHARE, R$3.4353 WERE PAID IN CASH AND R$4.1497 WILL BE PAID BY INSTALLMENTS, AND THIS INSTALLMENT ALSO REFERRED TO AS "CREDIT".

 

2. THE AGREEMENT ALSO SETS FORTH THAT THE BOARD OF DIRECTORS OF CBD WOULD CALL A GENERAL SHAREHOLDERS' MEETING OF CBD AND ITS AGENDA TO INCLUDE THE APPROVAL OF THE COMPANY'S CAPITAL STOCK INCREASE UP TO R$664,361,840.00, BY ISSUING 16,609,046 NON-VOTING CLASS B PREFERRED SHARES (THE "CLASS B SHARES"), SUBJECT TO A LOCK-UP PERIOD (THE "LOCK-UP PERIOD") AND THE MANDATORY CONVERSION INTO THE COMPANY'S CLASS A SHARES, AS PER SCHEDULE BELOW:

 

(I) 32% OF TOTAL CLASS B SHARES ISSUED WILL BE CONVERTED WITHIN FIVE (5) CONSECUTIVE DAYS, AS OF THE RATIFICATION DATE OF CAPITAL INCREASE, I.E., SEPTEMBER 28, 2009;

(II) 28% OF TOTAL CLASS B SHARES ISSUED WILL BE CONVERTED ON JANUARY 7, 2010;

(III) 20% OF TOTAL CLASS B SHARES ISSUED WILL BE CONVERTED ON JULY 7, 2010; AND

(IV) 20% OF TOTAL CLASS B SHARES ISSUED WILL BE CONVERTED ON JANUARY 7, 2011.

 

3. GUSA'S CONTROLLING SHAREHOLDERS AND ALL GUSA'S MINORITY SHAREHOLDERS ADHERING TO THE AGREEMENT SHOULD BE REQUIRED TO SUBSCRIBE CLASS B SHARES, WHOSE PREEMPTIVE RIGHTS WOULD BE ASSIGNED BY WILKES, AS WELL AS EVENTUAL UNSOLD CLASS B SHARES RESULTING FROM SHARES NOT SUBSCRIBED BY CBD'S SHAREHOLDERS. ALSO PURSUANT TO THE AGREEMENT, THE CLASS B SHARES WOULD BE FULLY PAID-UP BY USING THE CREDIT, ACCRUED BY 10% ONCE EXERCISED THE SUBSCRIPTION OPTION OF CLASS B SHARES.

 

4. ON JULY 6, 2009, THE GENERAL SHAREHOLDERS' MEETING OF THE COMPANY APPROVED THE AFOREMENTIONED CAPITAL STOCK INCREASE, EXCLUSIVELY BY MEANS OF THE ISSUE OF CLASS B SHARES, AT R$40.00 PER SHARE (THE "CAPITAL INCREASE"). THE CLASS B SHARES ISSUED DUE TO THE CAPITAL INCREASE COULD BE SUBSCRIBED: (I) BY CBD'S SHAREHOLDERS, BY EXERCISING THEIR PREEMPTIVE RIGHTS IN THE SUBSCRIPTION OF NEW COMPANY SHARES AND PAID-UP IN CASH, IN DOMESTIC CURRENCY; (II) BY GUSA'S CONTROLLING SHAREHOLDERS AND TO BE PAID-UP BY CAPITALIZING THE CREDIT HELD THEREBY; AND (III) BY GUSA'S MINORITY SHAREHOLDERS ADHERING TO THE AGREEMENT, THESE SHARES ALSO TO BE PAID-UP BY CAPITALIZING THE CREDIT HELD THEREBY.

 

5. ONCE EXPIRED THE TERMS PROVIDED FOR IN THE AGREEMENT, ONE HUNDRED AND TWENTY (120) GUSA'S MINORITY SHAREHOLDERS OPTED FOR ADHERING TO THE AGREEMENT, SO THAT TO SELL THEIR SHARES ISSUED BY GUSA TO MANDALA. THUS, IN VIEW OF THE AFOREMENTIONED ADHESION, GUSA'S MINORITY SHAREHOLDERS JOINTLY DECLARED THE CREDIT IN THE TOTAL AMOUNT OF R$142,517,539.00 TO BE USED IN THE SUBSCRIPTION AND PAYMENT OF CLASS B SHARES. IN ADDITION, PURSUANT TO THE AGREEMENT, GUSA'S CONTROLLING SHAREHOLDERS ARE HOLDERS OF CREDIT, IN THE AMOUNT OF R$496,193,966.00.

 

5.1. THEREFORE, DUE TO THE AMOUNT OF CREDITS, GUSA'S MINORITY SHAREHOLDERS ADHERING TO THE AGREEMENT COULD SUBSCRIBE 3,562,938 CLASS B SHARES AND GUSA'S CONTROLLING SHAREHOLDERS COULD SUBSCRIBE 12,404,849 CLASS B SHARES.

 

5.2. NEVERTHELESS, AS THE AGREEMENT SETS FORTH, IF AS A RESULT OF THE EXERCISE OF PREEMPTIVE RIGHT IN THE SUBSCRIPTION OF CLASS B SHARES BY CBD'S SHAREHOLDERS, THE AMOUNT OF CLASS B SHARES ISSUED WITHIN THE SCOPE OF CAPITAL INCREASE IS NOT SUFFICIENT TO USE THE ENTIRE CREDIT HELD BY GUSA'S CONTROLLING SHAREHOLDERS AND BY GUSA'S MINORITY SHAREHOLDERS, THE PORTION OF CREDIT NOT USED IN THE SUBSCRIPTION AND PAYMENT OF CLASS B SHARES BY GUSA'S CONTROLLING SHAREHOLDERS AND GUSA'S MINORITY SHAREHOLDERS WOULD BE PAID IN CASH, IN DOMESTIC CURRENCY, WITHIN TEN (10) BUSINESS DAYS AS OF THE RATIFICATION OF CAPITAL INCREASE, BY USING THE AMOUNT RESULTING FROM THE PAYMENT OF CLASS B SHARES BY CBD'S SHAREHOLDERS.

 

6. AFTER ELAPSING THE FORTY-FIVE (45) DAY PRECLUSIVE TERM FOR THE EXERCISE OF PREEMPTIVE RIGHT FOR THE SUBSCRIPTION OF CLASS B SHARES BY CBD'S SHAREHOLDERS, AS WELL AS THE TERM TO DISTRIBUTE UNSUBSCRIBED CLASS B SHARES, AS PROVIDED FOR IN ITEM B OF PARAGRAPH 7 OF ARTICLE 171 OF THE BRAZILIAN CORPORATION LAW, WE VERIFIED THAT 11,935,446 CLASS B SHARES WERE SUBSCRIBED BY CBD'S MINORITY SHAREHOLDERS, SO THAT 4,673,600 CLASS B SHARES REMAIN TO BE DISTRIBUTED BETWEEN GUSA'S CONTROLLING SHAREHOLDERS AND GUSA'S MINORITY SHAREHOLDERS ADHERING TO THE AGREEMENT.

 

7. THUS, CONSIDERING THAT, AS A RESULT OF THE EXERCISE OF PREEMPTIVE RIGHT IN THE SUBSCRIPTION OF CLASS B SHARES BY CBD'S SHAREHOLDERS, THE AMOUNT OF REMAINING CLASS B SHARES, COMPOSED OF WILKES' ASSIGNMENTS OF SUBSCRIPTION RIGHTS AND UNSOLD SHARES FOR SUBSCRIPTION AND PAYMENT BY GUSA'S CONTROLLING SHAREHOLDERS AND GUSA'S MINORITY SHAREHOLDERS IS NOT SUFFICIENT TO USE THE ENTIRE CREDIT HELD THEREBY, THE COMPANY ANNOUNCES THAT THE REMAINING 4,673,600 CLASS B SHARES WILL BE DISTRIBUTED BETWEEN GUSA'S CONTROLLING SHAREHOLDERS AND GUSA'S MINORITY SHAREHOLDERS, PROPORTIONALLY TO THE CREDIT HELD BY EACH ONE AGAINST MANDALA, CORRESPONDING TO 3,630,824 CLASS B SHARES TO GUSA'S CONTROLLING SHAREHOLDERS AND 1,042,776 CLASS B SHARES TO GUSA'S MINORITY SHAREHOLDERS.

 

7.1. THEREFORE, THE AMOUNT OF CREDIT HELD BY GUSA'S CONTROLLING SHAREHOLDERS AND GUSA'S MINORITY SHAREHOLDERS WILL BE PAID AS FOLLOWS:

 

(I) 29.2689348% IN CLASS B SHARES, DISTRIBUTED PROPORTIONALLY TO THE CREDIT HELD BY EACH SHAREHOLDER AGAINST MANDALA;

 

(II) 70.7310652% IN DOMESTIC CURRENCY, PROPORTIONALLY TO THE CREDIT HELD BY EACH SHAREHOLDER AGAINST MANDALA, AS FOLLOWS:

 

A)   GUSA'S CONTROLLING SHAREHOLDERS WILL RECEIVE ON OCTOBER 2, 2009 THE AMOUNT OF  R$ 350,961,006.40, REFERRING TO THE PORTION OF CREDIT NOT USED IN THE SUBSCRIPTION AND PAYMENT OF CLASS B SHARES; AND

 

B)   GUSA'S MINORITY SHAREHOLDERS WILL RECEIVE ON OCTOBER 2, 2009, THE AMOUNT OF R$ 100,806,493.30, REFERRING TO THE PORTION OF CREDIT NOT USED IN THE SUBSCRIPTION AND PAYMENT OF CLASS B SHARES.

 

8. IN ADDITION, PURSUANT TO THE AGREEMENT, EXCEPT FOR THE FIRST RELEASE OF LOCK-UP PERIOD TO OCCUR ON SEPTEMBER 28, 2009, IF ON EACH RELEASE DATE OF CLASS B SHARES LOCK-UP PERIOD, AS PER CONVERSION SCHEDULE INDICATED IN ITEM 2 ABOVE, THE MARKET VALUE OF CLASS A SHARES, CALCULATED ACCORDING TO THE WEIGHTED AVERAGE PRICE BY VOLUME AT EACH TRADING SESSION, AT 15 TRADING SESSIONS OF  BM&FBOVESPA IMMEDIATELY PRECEDING EACH DATE OF CONVERSION, IS LESS THAN THE PRICE PER CLASS A SHARE OF FORTY REAIS (R$40.00), DULY ADJUSTED ACCORDING TO THE CDI RATE VARIATION, AS OF JUNE 7, 2009 UNTIL THE RESPECTIVE RELEASE DATE OF LOCK-UP PERIOD, MANDALA SHALL PAY TO GUSA'S CONTROLLING SHAREHOLDERS AND GUSA'S MINORITY SHAREHOLDERS AN AMOUNT CORRESPONDING TO SAID DIFFERENCE, PER SUBSCRIBED CLASS B SHARE (THE "DIFFERENCE").

 

9. FINALLY, WE INFORM THAT IN RELATION TO CLASS B SHARES THAT WILL BE CONVERTED ON SEPTEMBER 28, 2009, THE DIFFERENCE AMOUNT IS R$3.6927 PER CLASS B SHARE, DULY ADJUSTED ACCORDING TO THE CDI VARIATION AS OF JUNE 7, 2009, AS SET FORTH IN THE AGREEMENT.

 

PARTNERSHIP WITH CASAS BAHIA

 

IN DECEMBER 2009, GPA AND THE CONTROLLING PARTNERS OF CASAS BAHIA ENTERED INTO A PARTNERSHIP AGREEMENT AIMING AT MERGING THEIR RETAIL TRADE OF DURABLE GOODS, AS WELL AS CONSOLIDATING THE DURABLE GOODS E-COMMERCE. THIS PARTNERSHIP WILL ALLOW GPA TO OFFER A LARGER DIVERSITY OF PRODUCTS, BETTER CUSTOMER SERVICE AND EASIER CREDIT ACCESS. THIS OPERATION IS PENDING APPROVAL FROM THE BRAZILIAN ANTITRUST AUTHORITIES.

ONCE CONCLUDED THE MERGER BETWEEN GLOBEX AND CASAS BAHIA RETAIL BUSINESSES, THE COMPANY WILL HAVE THE CONTROLLING INTEREST IN GLOBEX'S TOTAL AND VOTING CAPITAL, HOLDING, AT LEAST, FIFTY PERCENT (50%) OF THE COMMON SHARES PLUS ONE.

THIS PARTNERSHIP WILL BE IMPLEMENTED WITHIN 120 DAYS AS OF THE DATE THE AGREEMENT IS SIGNED AND THE CONSOLIDATION OF RETAIL AND E-COMMERCE BUSINESSES WILL OCCUR SIMULTANEOUSLY. AT DECEMBER 31, 2009, SAID TRANSACTION DID NOT CREATE ANY ACCOUNTING RECORD.

AT THE EXTRAORDINARY GENERAL MEETING HELD AT JANUARY 11, 2010, SHAREHOLDERS APPROVED THE PARTNERSHIP AGREEMENT, SIGNED BY CBD, MANDALA AND GLOBEX AND CONTROLLING PARTNERS OF CASA BAHIA COMMERCIAL LTDA. AT DECEMBER 4, 2009, WHICH ESTABLISHES THE TERMS AND CONDITIONS THAT WILL RULE THEIR BUSINESS IN THE DURABLE GOODS RETAIL TRADE.

 

ON FEBRUARY 3, 2010, THE COMPANY AND CASAS BAHIA ENTERED INTO A PROVISIONAL AGREEMENT FOR REVERSIBLE OPERATION (APRO) WITH THE ADMINISTRATIVE COUNCIL FOR ECONOMIC DEFENSE - CADE, SETTING FORTH THE FOLLOWING: (I) THE COMPANIES SHALL MAINTAIN THEIR BRANDS, CASAS BAHIA AND PONTO FRIO, AND ALSO SHALL CARRY OUT SEPARATE PROMOTIONAL CAMPAIGNS, ENSURING ADVERTISING INVESTMENTS IN LEVELS COMPATIBLE WITH THE PREVIOUS YEARS, BESIDES THE EXCEPTIONAL ASSUMPTIONS DERIVING FROM THE ECONOMIC SITUATION; (II) THE COMPANIES SHALL CONTINUE OPERATING CURRENT STORES IN THE 146 MUNICIPALITIES WHERE CASAS BAHIA AND PONTO FRIO PERFORM THEIR ACTIVITIES; (III) THEY SHALL MAINTAIN THEIR RESPECTIVE WAREHOUSES (CDS), ALSO UNDERTAKING TO MAINTAIN THEIR OVERALL EMPLOYMENT LEVELS; (IV) THEY MAINTAIN THE FURNITURE FACTORY BARTIRA, SUBSIDIARY OF CASAS BAHIA THAT OPERATES EXCLUSIVELY FOR THE GROUP; (V) THEY SHALL MAINTAIN THEIR RESPECTIVE CREDIT FACILITY POLICIES; AND (VI) THEY SHALL MAINTAIN THEIR PROCUREMENT STRUCTURES AND COMMERCIAL AGREEMENTS SEPARATELY, EVEN IF THEY ARE ABLE TO WORK TOGETHER IN THIS FIELD. EXCEPT FOR THESE SPECIFIC CONDITIONS, THE COMPANIES MAY ADOPT THE MEASURES NECESSARY TO CONSOLIDATE THEIR ACTIVITIES AND CAPTURE THE SYNERGIES RESULTING FROM THIS OPERATION.

 

ON MARCH 14, 2011, IT WAS APPROVED BY THE SHAREHOLDERS OF THE COMPANY THE ACQUISITION OF 250.001.000 SHARES OF SENDAS S.A. BY ITS SUBSIDIARY BARCELONA COMERCIO VAREJISTA E ATACADISTA S.A.

 

FURTHER DETAILS ABOUT THE SUBJECT'S HISTORY ARE SO FAR NOT KNOWN.

 

PUBLIC INFORMATION:

 

PROTESTS:

 

299  PROTESTS,TOTAL AMOUNT R$ 1.730.814,26

    DATE OF FIRST PROTEST: 06/2008  R$ 3.103,03

    DATE OF HIGHEST PROTEST: 12/2012  R$ 194.675,54

 

DETAILS OF LATEST PROTESTS:

 

NOTARY OFFICE:

DATE:

VALUE:

1º CARTORIO DE GUARULHOS/SP

29/04/2013

R$ 825,60

1º CARTORIO DE SAO BERNARDO DOCAMPO/SP

26/04/2013

R$ 802,98

7º CARTORIO DE SAO PAULO/SP/CAPITAL

29/04/2013

R$ 3.138,21

1º CARTORIO DE GUARULHOS/SP

29/04/2013

R$ 849,33

2º CARTORIO DE SAO BERNARDO DOCAMPO/SP

03/05/2013

R$ 579,22

 

LAWSUITS:

 

 

 

DATE:

COURT OF LAW:

 

3

EVICTIONS

14/03/13

2º VARA DE RIBEIRAO PRETO/SP

281

MUNICIPAL LAWSUITS

26/04/13

VARA DE MOGI DAS CRUZES/SP

230

FEDERAL LAWSUITS

29/04/13

2ª VARA DE SAO PAULO/SP/FEDERAL

6

EXECUTIVE LAWSUITS

17/05/12

7º VARA DE SALVADOR/BA

733

STATE LAWSUITS

24/04/13

VARA DE PRAIA GRANDE/SP

5

MONITORY SUITS

23/11/12

34º VARA DE SAO PAULO/SP/CENTRAL

 

 

FINANCIAL INFORMATION

 

GENERAL BALANCE SHEETS AS OF 31/03/2013, 31/12/2012 AND 31/12/2011.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

ASSETS

 

 

 

CURRENT:

31/03/2013

31/12/2012

31/12/2011

 

 

 

 

CASH AND BANKS

2.150.596

2.890.331

2.328.783

CLIENTS

679.620

492.642

831.669

INVENTORY

2.132.190

2.132.697

1.914.938

RECOVERABLE TAXES

199.257

193.714

413.721

PRE PAID EXPENSES

90.200

30.096

50.404

ACCOUNTS RECEIVABLE

23.332

21.141

17.778

OTHER

54.276

30.142

 

 

----------------

----------------

----------------

TOTAL CURRENT ASSETS

5.329.471

5.790.763

5.557.293

 

LONG-TERM RECEIVABLES:

 

 

 

 

 

 

 

DEFERRED TAXES

180.359

185.491

225.010

JUDICIAL DEPOSITS

541.751

548.375

386.487

ACCOUNTS RECEIVABLES

28.932

25.740

46.736

INTERCOMPANY CREDITS

449.401

1.532.309

1.143.031

RECOVERABLE TAXES

236.746

217.651

24.526

PRE PAID EXPENSES

44.581

49.064

31.979

OTHER CREDITS

 

 

124.276

 

----------------

----------------

----------------

TOTAL LONG-TERM RECEIVABLES

1.481.770

2.558.630

1.982.045

 

FIXED ASSETS:

 

 

 

 

 

 

 

INVESTMENTS

7.950.256

6.736.527

4.191.683

FIXED ASSETS

5.894.094

5.816.754

5.074.613

INTANGIBLE

1.104.115

1.108.116

949.890

 

----------------

----------------

----------------

TOTAL FIXED ASSETS

14.948.465

13.661.397

10.216.186

 

================

================

================

TOTAL ASSETS

21.759.706

22.010.790

17.755.524

 

LIABILITIES:

 

 

 

CURRENT:

31/03/2013

31/12/2012

31/12/2011

 

 

 

 

SOCIAL / LABOR OBLIGATIONS

283.233

330.884

297.300

SUPPLIERS

2.118.553

2.357.379

2.526.912

TAX LIABILITIES

136.506

101.508

69.102

LOANS AND FINANCING

2.240.108

1.418.852

712.678

DEBT WITH RELATED PARTIES

2.290.360

2.247.329

188.272

DIVIDENDS

 

 

103.387

PROVISIONS

20.178

24.550

176.171

OTHER DEBTS

633.253

618.339

175.336

 

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

7.722.191

7.098.841

4.249.158

 

LONG TERM LIABILITIES:

 

 

 

 

 

 

 

LOANS AND FINANCING

3.804.205

4.903.336

4.429.542

INSTALLMENTS TAXES PAYABLE

1.100.393

1.119.029

1.202.667

PROVISIONS

339.545

345.683

236.922

OTHER

48.023

49.176

11.962

 

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

5.292.166

6.417.224

5.881.093

 

NET EQUITY:

 

 

 

 

 

 

 

SHARE CAPITAL

6.711.123

6.710.035

6.129.405

CAPITAL RESERVES

242.132

228.459

384.342

PROFIT RESERVES

1.555.519

1.556.231

1.111.526

ACCRUED PROFIT (LOSS)

236.575

 

 

 

----------------

----------------

----------------

TOTAL NET EQUITY

8.745.349

8.494.725

7.625.273

 

================

================

================

TOTAL LIABILITIES

21.759.706

22.010.790

17.755.524

 

PROFIT AND LOSS ACCOUNTS AS OF 31/03/2013, 31/12/2012 AND 31/12/2011.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

 

31/03/2013

31/12/2012

31/12/2011

 

 

 

 

NET SALES

5.144.007

19.051.959

17.744.191

(-) COST OF SOLD GOODS

3.744.468

14.064.637

13.158.402

 

----------------

----------------

----------------

GROSS PROFIT

1.399.539

4.987.322

4.585.789

OPERATING REVENUE (EXPENSE)

-998.692

-3.295.770

-3.309.555

FINANCIAL REVENUE(EXPENSE)

-106.912

-455.910

-472.935

 

----------------

----------------

----------------

OPERATIONAL PROFIT (LOSS)

293.935

1.235.642

803.299

CONTRIBUTION/INCOME TAX

-57.360

-184.461

-85.080

 

----------------

----------------

----------------

NET PROFIT (LOSS)

236.575

1.051.181

718.219

 

RATIOS:

31/03/2013

31/12/2012

31/12/2011

 

QUICK RATIO

,41

 

,52

 

,86

 

CURRENT RATIO

,69

 

,82

 

1,31

 

ACCOUNTS RECEIVABLE TURNOVER

7,57

TIMES

38,67

TIMES

21,34

TIMES

DAYS' SALES IN RECEIVABLES

11,89

DAYS

9,31

DAYS

16,87

DAYS

INVENTORY TURNOVER

1,76

TIMES

6,59

TIMES

6,87

TIMES

ACCOUNTS PAYABLE PERIOD

50,92

DAYS

60,34

DAYS

69,13

DAYS

RETURN ON ASSETS

,24

TIMES

,87

TIMES

1,00

TIMES

SALES TURNOVER ON NET EQUITY

,59

TIMES

2,24

TIMES

2,33

TIMES

NET WORTH TIE-UP

,67

 

,68

 

,67

 

INDEBTEDNESS

1,49

 

1,59

 

1,33

 

EQUITY RATIO

40,19

%

38,59

%

42,95

%

WORKING CAPITAL RATIO

-30,99

%

-18,43

%

30,79

%

GENERAL SOLVENCY

1,67

 

1,63

 

1,75

 

RETURN ON NET EQUITY

2,71

%

12,37

%

9,42

%

RETURN ON SALES (PROFIT MARGIN)

4,60

%

5,52

%

4,05

%

GROSS PROFIT MARGIN

27,21

%

26,18

%

25,84

%

OPERATIONAL RESULT

5,71

%

6,49

%

4,53

%

SALES TURNOVER ON LIABILITIES

,67

TIMES

2,68

TIMES

4,18

TIMES

FOREIGN CURRENCY ON ASSETS

 

 

 

 

 

 

FOREIGN CURRENCY ON LIABILITIES

 

 

 

 

 

 

 

EXCHANGE RATE:

 

 

US$ 1,00 = R$ 2,00

 - OFFICIAL RATE ON 09/05/2013

US$ 1,00 = R$ 2,04

 - OFFICIAL RATE ON 31/12/2012

US$ 1,00 = R$ 1,87

 - OFFICIAL RATE ON 31/12/2011

US$ 1,00 = R$ 1,66

 - OFFICIAL RATE ON 31/12/2010

 

COMMENTS ON THE FINANCIAL INFORMATION:

 

FOLLOWS ATTACHED WORKSHEET WITH MAIN FINANCIAL RATIOS.

 

THE ANNUAL FIGURES AVAILABLE SHOW A FAIR FINANCIAL STANDING. THE LEVEL OF INDEBTEDNESS IS HIGH AND IT IS NOTED LOW CURRENT RATIO. ON THE OTHER HAND IT SHOWS GROWING SALES AND PROFITABILITY.

 

THE QUARTERLY FIGURES FOR MARCH 2013 SHOW THAT THE INDEBTEDNESS KEEPS HIGH AND THE LIQUIDITY DECREASED. ON THE OTHER HAND THE COMPANY KEEPS ON OPERATING WITH GROWING SALES TREND AND POSITIVE RESULTS.

 

REAL ESTATE:

 

OWNED PREMISES ARE VALUED AT R$ 4.593.640.000,00

 

VEHICLES:

 

OWNED VEHICLES ARE VALUED AT R$ 16.898.000,00

 

MACHINES:

 

OWNED MACHINES AND EQUIPMENTS ARE VALUED AT R$ 698.815.000,00

 

 

INSURANCE

 

COVERAGE:

VEHICLES AND OTHERS

VALUE:

R$ 459.293.000,00

 

 

COVERAGE:

REAL ESTATE AND INVENTORIES

VALUE:

R$ 6.702.514.000,00

 

 

COVERAGE:

CEASING PROFIT

VALUE:

R$ 1.579.602.000,00

 

 

COVERAGE:

CIVIL LIABILITY AND ADMINISTRATIVE

VALUE:

R$ 292.620.000,00

 

 

BANKING REFERENCES

 

 

BRANCH/PHONE:

CITY:

BANCO DO BRASIL S/A

11 3066-9720

SÃO PAULO/SP

BANCO ITAÚ S/A

11 3887-2333

SÃO PAULO/SP

BANCO ITAÚ S/A

11 3886-0224

SÃO PAULO/SP

BANCO SANTANDER (BRASIL) S/A

11 3538-8051

SÃO PAULO/SP

 

REMARKS: IN BRAZIL THE BANKS ARE PROHIBITED BY LAW TO PROVIDE INFORMATION OR ANY KIND OF COMMENTS ABOUT THEIR CLIENTS. DUE TO THIS LAW PROHIBITION WE ARE UNABLE TO PROVIDE ANY BANKING DETAILS.

 

ACCORDING TO THE CENTRAL BANK OF BRAZIL OFFICIAL REPORT, THE COMPANY HAS NO RETURNED CHECKS UP TO DATE. (IN THE TERMS OF "CIRCULAR 1682 BRAZILIAN CENTRAL BANK"). DATE RESEARCHED MAY 09, 2013.

 

 

ACTIVITIES COMMENTS

 

THE SUBJECTS OPERATE AS A SUPERMARKET CHAIN. IT OWNS 349 SUPERMARKET STORES TRADING AS "PÃO DE AÇÚCAR", "EXTRA", "COMPREBEM", "EXTRA-ELETRO", PONTO FRIO AND CASAS BAHIA.

 

THE COMPANY IS MAINLY ENGAGED IN THE RETAIL SALE OF FOOD PRODUCTS, APPAREL, ELECTRIC-ELECTRONIC AND OTHER ITEMS WHICH COMPLETE ITS HYPERMARKET AND SUPERMARKET LINES AS WELL AS SPECIALIZED AND DEPARTMENT STORES OPERATING UNDER THE NAMES ""PÃO DE AÇÚCAR", "EXTRA", "BARATEIRO", "COMPREBEM", "EXTRA ELETRO" AND "SENDAS".

 

ON DECEMBER 31, 2009 THE COMPANY HAD 1080 STORES OPERATING, BEING 145 OPERATED BY THE SUBJECT, 157 STORES OPERATED BY COMPREBEM, 163 STORES BY EXTRA, 68 STORES OPERATED BY SENDAS, 40 STORES OPERATED BY ASSAI AND 455 STORES OPERATED BY PONTO FRIO.

 

IMPORT AND EXPORT:

 

IMPORTS FROM:

WORLDWIDE.

 

EXPORTS TO:

DOES NOT EXPORT.

 

MAIN CLIENTS:

 

 

 

 

 

DOMESTIC CLIENTS:

 

 

CONSUMIDOR FINAL

 

 

 

STAFF:

 

THE COMPANY HAS: 160717 EMPLOYEE(S)

 

 

CONCEPT AND FULFILMENT

 

THE SUBJECT IS THE LARGEST COMPANIES IN THE SUPERMARKET FIELD IN BRAZIL. IT IS OWNED BY SHAREHOLDERS WITH AN EXCELLENT MARKET REPUTATION ENJOYING FAVORABLE RELATIONS WITH LOCAL SUPPLIERS AND CUSTOMERS.

 

THE COMPANY HAS TRADE RELATIONS WITH SEVERAL SUPPLIERS IN BRAZIL. THE SUPPLIERS EXTEND CREDIT FACILITIES TO THE SUBJECT IN TERMS AND AMOUNTS ACCORDING TO THE COMPANY'S NEEDS AND SO FAR NO PAYMENT PROBLEMS ARE NOTED.

 

AS MOST OF THE SUPPLIERS, WHICH PROVIDED INFORMATION REPORTED PROMPT PAYMENTS, IT MAY BE NOTED SUBJECT HAS VERY GOOD TRADE BEHAVIOR.

 

THE LAWSUITS REPORTED ARE NOT RELATED WITH TRADE DEBTS. THEY ARE RELATED TO TAX DEBTS THAT FOR ANY REASON THE COMPANY HAS NOT YET PAID. USUALLY THIS KIND OF SUITS DO NOT AFFECT THE COMPANY REPUTATION BUT IN THE SUBJECT SPECIFIC CASE IT IS NOT POSSIBLE TO EVALUATE AS THERE ARE SEVERAL SUITS REGISTERED AND NO DETAILS REGARDING THE AMOUNTS INVOLVED ARE AVAILABLE FOR PUBLIC INSPECTION.

 

SEVERAL PROTESTS WERE ALSO NOTED BUT DUE TO THE HUGE FINANCIAL STRENGTH OR THE SUBJECT AND ITS HIGH SCALE OF OPERATIONS THE SAID PROTESTS DO NOT AFFECT ITS CREDITWORTHINESS. SEVERAL SUPPLIERS STILL EXTEND CREDIT FACILITIES TO THE SUBJECT DESPITE THE SEVERAL PROTESTS AND NO PAYMENT PROBLEMS ARE NOTED.

 

MAIN SUPPLIERS:

 

 

 

 

 

DOMESTIC SUPPLIERS:

CITY:

PHONE:

INDÚSTRIAS GESSY LEVER LTDA.

SÃO PAULO/SP

11 3260-3011

KIBON S/A INDÚSTRIA DE ALIMENTOS

SÃO PAULO/SP

11 3240-2011

NESTLÉ INDÚSTRIA E COMÉRCIO LTDA.

SÃO PAULO/SP

11 3534-7607

REFINAÇÕES DE MILHO BRASIL LTDA.

SÃO PAULO/SP

11 3260-5099

SADIA COMERCIAL LTDA.

SÃO PAULO/SP

11 3833-3888

 

PAYMENT HISTORY:

 

101 SUPPLIERS REPORTED PAYMENTS:

   TOTAL AMOUNT:  R$ 275.796.895,00

 

AMOUNT OF INVOICES PAID: 21643

TOTAL OF PROMPT PAYMENTS: 88,7%

TOTAL OF DELAYED PAYMENTS: 11,3%

 

HIGHEST INVOICE: R$ 1.254.758,00

HIGHEST CREDIT: R$ 7.520.594,00

 

OUTSTANDING INVOICES DUE WITHIN THE NEXT 91 DAYS:

 

---------------------------

SUPPLIERS:

INVOICES:

TOTAL AMOUNT:

DUE WITHIN 30 DAYS

41

1767

R$ 21.586.904,05

DUE WITHIN 60 DAYS

28

1210

R$ 18.900.655,88

DUE WITHIN 90 DAYS

12

150

R$ 1.861.904,35

DUE WITHIN 91 DAYS

1

14

R$ 182.868,00

 

 

FINAL OPINION

 

THE SUBJECT IS A WELL-ESTABLISHED COMPANY IN BUSINESS FOR SEVERAL YEARS. IT IS THE LARGEST COMPANIES IN THE COUNTRY IN THE FIELD OF SUPERMARKET SERVICES. UP TO DATE IT HAS GOOD FINANCIAL STANDING AND VERY GOOD PAYMENT BEHAVIOUR.

 

BASED ON THE GENERAL INFORMATION AVAILABLE IT IS BELIEVED THAT GOOD TRADE RELATIONS MAY BE ESTABLISHED. CREDIT FACILITIES MAY BE EXTENDED WITHIN TERMS AND AMOUNTS ADEQUATE TO THE COMPANY'S FINANCIAL STRENGTH.

 

DUE TO THE SUBJECT'S HIGH FINANCIAL STRENGTH, A MAXIMUM CREDIT LIMIT WILL NOT BE DETERMINED. AN INITIAL MONTHLY CREDIT LIMIT OF US$ 10.000.000,00 MAY BE CONSIDERED.

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.54

UK Pound

1

Rs.84.19

Euro

1

Rs.71.11

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.