Institutional Presentation - August 2020
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Institutional Presentation
August 2020
1
OVERVIEW 2
OVERVIEW
VIVARA IN NUMBERS(2)
#1 jewelry and watch R$1.5 bi+ of R$272 mi+
263 points of sale(1)
retailer in Brazil Gross Adjusted EBITDA
Revenue (23.2% margin)
R$318 mi+
Net income 8.6%+ SSS
(27.2% margin)
Member of the Initiative for
Present in 24 Brazilian
Responsible Mining
states
Assurance (IRMA)
(1) Position on August 26, 2020
(2) Base date: December 31, 2019
3
ORGANIZATIONAL CULTURE
OUR PURPOSE
“TO MAKE EACH STORY UNIQUE AND SPECIAL”
MISSION VALUES
Be the most desired brand in Latin America to • SENSE OF OWNERSHIP
celebrate special moments.
• FASCINATE THE CUSTOMER
VISION • CREATIVITY
We exist to fascinate our customers by
• WE ARE STRONG TOGETHER
offering the best experience when
choosing the perfect gift.
• RESILIENCE
4
HISTORY
~60 YEARS
OFMARKET LEADERSHIP
Opening of Over
Manaus 80 Stores Launch of IPO on B3
plant in Brazil e-commerce
1962 2003 2011 2016
1992 2007 2012 2019
1st Launch of Launch of Implementation
store 1st own watch Life by Vivara of omnichannel
brand brand
5
VALUE PROPOSITION
PERCEPTION OF
BRAND FOR LIFE
Vivara's diversified portfolio covers all stages of the life of customers - from birth to
adulthood
Birth Childhood Youth Marriage Adulthood
6
CORPORATE GOVERNANCE
Governance Structure
HIGHEST LEVEL OF
C O R P O R A T E G O V E R N A N C E O N B3
❖ Ticker: VIVA3
❖ Novo Mercado – B3
❖ Multidisciplinary board
❖ 60% independent members
❖ Audit, Risk and Finance Committee and People, Culture
and Governance Committee
7
SUSTAINABILITY
OUR SUSTAINABILITY PILARS
OUR OUR OUR
PLANET COMMITMENT COMMUNITY
Signatory to the United Member of the Initiative
Life For Good and Nations (UN) Global for Responsible Mining
Palavras Preciosas Compact Assurance (IRMA)
collection to support
important social
causes Member of Responsible
Jewellery Council
8
COMPETITIVE
ADVANTAGES
9
VERTICALIZED BUSINESS
RIGOROUS CONTROL
FROM CONCEPTION TO DELIVERY
DESIGN & PRODUCTION DISTRIBUTION
DEVELOPMENT CAPACI TY / LOGISTICS
OF PRODUCTS
30+ 2.6mi 3 days
Collections / year units produced a year for deliveries from DC to
stores
Quick reaction to
new trends and
innovations
80%
Own production
Integrated inventory
in key regions, with deliveries in 1
day
Cost-oriented design,
ensuring price
optimization and
profitability
10
(1) Position on August 26, 2020
263 P O I N T S O F S A L E (1)
(100% OWN)VERTICALIZED BUSINESS
OVERVIEW OF PLANT
4,200 m2 of built area
Manaus
Free Trade Zone
~380 people (1)
PRODUCTION OF GOLD JEWELRY PRODUCTION OF SILVER JEWELRY ASSEMBLY OF WATCHES
1,900
290,000+ thousand+ 400,000+
units/year units/year
units/year
Certifications
11SALES FORCE
MANAGEMENT OF FREQUENT AND EFFECTIVE
SALES FORCE TRAINING
20 School stores – capacity to train up to
Remote Centralized 200 managers/year
monitoring of Controls and
stores Reports
180+ e-learning modules
“”Vitrine” “Show Me”
54 hours of training/employee
Program Program
HIGH PERFORMANCE TEAM
ENGAGEMENT MERITOCRACY FASCINATED CUSTOMER
> 50% 65% NPS 89
Managers promoted internally Variable compensation Special Assisted Sale
12STRONG AND RECOGNIZED BRAND
“V I V A R A” B R A N D T O P OF M I N D I N J E W E L R Y MARKET
ACCESSIBLE LUXURY BROAD SPECTRUM OF
CUSTOMERS
Scale and speed in launching
fashion trends at commercial prices Brands and products for A+ to B-
classes
Special purchase journey in all
channels
STORE CLUSTERS AND
ASPIRATIONAL PORTFOLIO
COMMUNICATION 4 store clusters
11 product clusters
Salmon Box
Differentiated Visual Merchandising
30+ digital influencers
Colabs with artists and celebrities
3 ambassadors
13SUPPLIERS OF EXCELLENCE
Company Certifications
▪ With experience of over 180 years in the market,
AngloGold Ashanti is the world's third largest and
Gold
Brazil's largest gold mining company1
▪ Publicly-held company with market cap of USD 8.5
billion2
▪ Vivara is Brazil's only jewelry manufacturer
authorized to source from AngloGold
▪ Founded in 1965, KP Sanghvi is a global diamond
Diamond
and jewelry manufacturer
▪ KPS is recognized and respected worldwide
for impeccable service, superior quality and
exceptional value
Source: Company websites and Capital IQ
Notes: (1) Measured by production (2) On August 13, Johannesburg Securities Exchange
14OUR BUSINESSES 15
OUR BRANDS
MAKING EACH MOMENT
UNIQUE AND SPECIAL
OWN B RAN D S 3rd P A R T Y B R A N D S
+ 5 others
Exclusivity in Brazil
+ 5 others
16JEWELRY
JEWELRY
C L A S I C, M O D E R N A N D E
LEGANT
❖ A+ and B- Classes
❖ Aspirational communication
❖ Diversified product portfolio
❖ Accessible Luxury concept
❖ Average price(1): R$1,300.0
(1) Base-date: June 30, 2020
17LIFE
SILVER JEWELRY
Y O U N G, C A S U A L A N D M O D E R N
❖ A- and B- Classes
❖ Collectibles
❖ Diversified product portfolio
❖ Accessible Luxury concept
❖ Average price(1): R$185.0
(1) Base-date: June 30, 2020
18WATCHES
V I V A R A AN D A K I U M BRANDS
SOPHISTICATED AND MODERN
❖ A+ and B- Classes
❖ Two own brands and 16 third-party brands
❖ Average price(1): R$550.0
Main Brands Exclusivity in Brazil
+ 5 others + 5 others
(1) Base-date: June 30, 2020
19ACCESSORIES
WIDE VARIETY OF PRODUCTS
SOPHISTICATED AND MODERN
❖ Perfumes, leather accessories,
glasses and pens
❖ High quality
❖ Exclusive design
❖ Average price(1): R$245.0
(1) Base-date: June 30, 2020
20NATIONWIDE PRESENCE
263 P O I N T S O F S A L E
PRESENCE IN 24 STATES
207 Vivara Stores
11 Life Stores
45 Kiosks
Distribuição por região Novas Lojas por região
Sudeste 52% Sudeste 50%
Sul 16% Sul 50%
Norte 5% Norte 0%
Plant Located in Manaus
Nordeste 18% Nordeste 33%
Centro-oeste 11% Centro-oeste 50%
Distribution Center, Company's
headquarters and Technical
Assistance located in São Paulo
(*) position on August 26, 2020
21VIVARA STORE
Created in 1962
207 stores (1)
Comprehensive product portfolio
Stores spanning 90m², on average, in 4
different clusters – Total area:18,800 m² (1)
R$725.0 average ticket (2)
Vivara Morumbi Shopping – São Paulo (SP)
(1) Position on August 26, 2020
(2) Base date: June 30, 2020
22LIFE STORE
Created in 2011
11 stores (1)
Target public: Young and casual
Stores measuring 50m² on
average – Total area: 515 m² (1)
R$275.0 average ticket (2)
Life Shopping Catuaí – Londrina (PR)
(1) Position on August 26, 2020
(2) Base date: June 30, 2020
23KIOSKS
Created in 2005
45 kiosks (1)
Life kiosks, Hybrid kiosks and
Tommy kiosks
Market test, anticipate presence in
shopping malls with low vacancy;
(1) Position on August 26, 2020
24E-COMMERCE
www.vivara.com.br
Created in 2012
Omni strategy since 2016
Comprehensive product portfolio
Integrated inventory in key regions,
with deliveries in 1 day
7.5% of total revenue in 2019
25STRATEGY 26
JEWELRY MARKET IN BRAZIL
F DIVERSE
R A G M EOPPORTUNITIES
NTED MARKET
WITH OPORTUNITY FOR C ONSOLIDATION
(1) Consistent gain in Market Share (1)
Personal Accessories Market Jewelry and Watches (1)
4 players with less than 15% of the market CAGR (2016-2019) market: +1.5%
CAGR (2016-2019) Vivara: +6.6%
9,0%
14,4% 9,0% 2,0%
20,8% 1,7% 8,3%
16,1 bi
1,0%
12,4% 7,7% 7,8%
15,9 bi
R$24.8
15,6 bi
billion R$16.1
15,4 bi
in 2019 billion
in 2019
52,4% 86,3%
2016 2017 2018 2019
Bolsas e Bagagens Joias Relógios Canetas Vivara Player 1 Player 2 Player 3 Outros Joias e Relógios Market Share - Vivara (%)
(1) Source: Euromonitor International: Personal Accessories in Brazil – July 2019
27GROWTH AVENUES
DIVERSE OPPORTUNITIES
TO CREATE VALUE
Expansion of addressable
Organic market Opportunities in Development of
EXPANSION PORTFOLIO N EW B RAN D S O MN I C HAN N E L
of existing channels D I VER S IF I CAT I ON AND CHANNELS STRATEGY
▪ Vivara expansion strategy ▪ Products in new categories ▪ Entry in Marketplaces Unique shopping
33% 60% ▪ Expansion of SKU numbers in ▪ Expansion of B2B experience in all
penetration penetration channels
in shopping malls in shopping malls existing categories ▪ Creation of C Brand
▪ Life expansion strategy ▪ Department stores
28OMNI STRATEGY
UNIQUE SHOPPING EXPERIENCE
IN ALL CHANNELS
DATA LAKE USER EXPERIENCE
Customer relationship
Continuous improvement in
intelligence (CRM)
user experience, the website
and app to fascinate customers
in the digital environment as
well
INTEGRATED
INVENTORY MOBILITY
Comprehensive
portfolio, where and POS with mobile checkout
how the customer Infinite Shelf
wants
29OMNI STRATEGY
Online and
available
inventory
Return at Reserve in
Store store
Pick-up at
Mobile App
store
CUSTOMER
Custome
r
Integration
with Ship from
Other store
Platforms
Infinite Buy online
and return
Shelf Buy in at store
store and
receive at
home
30OMNI STRATEGY
UNIQUE SHOPPING EXPERIENCE
IN ALL CHANNELS
DISTRIBUTION CENTER
❖ Reduction in stockout
❖ Reallocation of orders
CUSTOMER
PHYSICAL STORES
❖ Infinite Shelf
❖ Increase in customer traffic at stores
❖ Pick-up at stores
E-COMMERCE
❖ Reduced shipping costs and timeframes
31APPENDIX 32
FINANCIAL HIGHLIGHTS
Net Revenue (R$mi) and SSS (%) Gross Profit (R$mi) and Gross Margin (%)
CAGR: +7.1% CAGR: +7.6% 767,514 797,745 88,0%
1,171,360 27.747
1,059,586
996,846 662,193
953,070 636,476
81,0%
8.6%
5.5% 523,749 339,818
74,0%
70.4%
2.8%
343,884 68.1% 229,994
9.8% 66.8% 66.4%
67,0%
-1.9% 67.8% 66.9%
-34.9% 64.9%
60,0%
2016 2017 2018 2019 1H19 1H20 2016 2017 2018 2019 1H19 1H20
Net Revenue SSS (Stores + e-commerce) Gross Profit Non-recurring Effect Gross Margin Adjusted Gross Margin
Adjusted EBITDA (R$mi) and Adjusted EBITDA Margin (%) Net Income (R$mi) and Net Margin (%)
CAGR: +8.5% CAGR: +30.4%
272,134 225,885 224,706
245,786
213,167 220,362 180,122
99,736
69,914
101,371
22.4% 23.2% 23.2%
22.1%
22.7%
17.0% 19.2% 13.3%
29,357
19.0% 10.6% 17,343
8.5%
5.0%
2016 2017 2018 2019 1H19 1H20 2016 2017 2018 2019* 1H19* 1H20
Adjusted EBITDA Adjusted EBITDA Margin Net Income Net Margin
*Net Income adjusted for non-recurring effects and in 2019 does not include the effects of the adoption of IFRS16.
33COVID-19 OVERVIEW
▪ Corporate restructuring
▪ Adhesion to Provisional Presidential Decree
(MP) 936 (Federal Law 14,020/2020)
▪ Negotiation with suppliers
▪ Discussion of actions with other retailers ▪ Resumption of plant operations
▪ Pilot initiatives to maximize revenues ▪ Resumption of Expansion Plan
▪ Gradual reopening of stores - 9 stores ▪ 186 stores reopened
April June
March May
▪ Migration to Home Office ▪ Rollout of sales initiatives
▪ Temporary closure of stores ▪ Donation of R$1.0 million to
▪ Temporary shutdown of plant Brazil Foundation
▪ Creation of Crisis Committees ▪ 26 stores reopened
34KEY INITIATIVES
Acceleration of inventory Jewelry in Action
integration (OMS)
• App to access customer history
• Rapid delivery in key regions
• Greater convenience • Contact via WhatsApp or
telephone
• Use of seller's code
• Secure sale on e-commerce
Drive Thru in main shopping
malls
• Convenience and safety for
customers Customer service chatbot
• Humanized customer service
• Assisted sale
Better use of CRM data
• Propensity for buying by category and
price ranges Digital Marketing
Expansion of digital presence
• Relationship rule • 30% increase in investment
• Acceleration of Marketplace
• More emotional communication
• Expansion of customer base
35DISCLAIMER
This report contains forward-looking statements related to business prospects, estimates of operating and financial results and the
growth prospects of Vivara S.A. These are merely projections and, as such, are solely based on Management’s expectations about
the future of the business. Such forward-looking statements depend substantially on changes in market conditions, the performance of
the Brazilian economy, the industry, and international markets and are, therefore, subject to change without prior notice.
All variations presented herein are calculated based on numbers in thousands of reais, as well as rounded figures.
INVESTOR RELATIONS
Otavio Lyra – CFO and IRO
Melina Rodrigues – IR Manager
Andressa Nunes – IR Analyst
E-mail: ri@vivara.com.br
Phone: 11 3896-2736 | 11 3896-2721
3637
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