B2W Companhia Digital : announces 4Q20 Results

B2W DIGITAL ANNOUNCES CASH GENERATION OF

R$ 718 MM AND NET INCOME OF R$ 16 MM IN 4Q20

In line with our new growth route for 2021, we have already shown a significant acceleration in Jan/21 and Feb/21, driven by the strong performance of the Marketplace.

GMV Growth

+90% +83%

+38%

4Q20

JAN/21

FEB/21

MESSAGE FROM MANAGEMENT

In 2020, we started the integrated strategic plan of the Americanas Universe for the next 3 years (2020-2022), which aims to be more relevant in the daily lives of our customers, offering: Everything. Anytime. Anywhere. Throughout the year, we have faced a challenging scenario due to the COVID-19 pandemic, which has brought enormous learning and motivated us to be even more agile, seeking innovative solutions to better serve the customer.

As a result, we have evolved to offer a more convenient and integrated experience for the customer, entering new categories, and delivering faster. Throughout 2020, our customer base reached 21.4 MM, gaining 5.4 MM new active customers (5 years of growth in 1). Our total GMV reached R$ 27.7 Bn for the year, and we had cash generation of R$306 MM (+61% vs. 2019).

The year of 2020 was also marked by our entry into the grocery category, through the acquisition of Supermercado Now, and through the rapid integration process with Americanas.com, the category has already become the largest in units sold. For 2021, we will continue to expand the grocery category with the integration of new partner stores, such as Carrefour, and Grupo Big, among others.

Another highlight was the rapid growth of O2O, which is already present in more than 5,000 stores of Americanas and Marketplace Sellers, generating GMV of R$ 3.7 billion in 2020 (+95% vs. 2019). The integration with Americanas made it possible to deliver 6.9 MM (11% of the total) deliveries within 3 hours during 2020. In 2021, delivery within hours will be one of our priorities.

Additionally, another initiative to reduce delivery times was the expansion of our logistics network, with the opening of 5 new Fulfillment Centers (FCs), all of which are located in new states. With this, we ended the year with a total of 22 FCs located in 12 states, allowing for delivery within 24 hours to more than a thousand cities.

Reinforcing our commitment to offer the best shopping experience on the Brazilian internet, we brought a new sales model to the country with Live Commerce (Americanas ao Vivo), which combines Shopping and Entertainment, and included the participation of several digital influencers for live product demonstrations.

As a result of these initiatives, the customer continues to recognize our brands as the most beloved on the Brazilian internet. We have the highest NPS in the eCommerce sector (8.8 - Source: Reclame Aqui), both in the 1P and 3P operations, and recently were recognized as the top marketplace, having received the RA 1000 seal from Reclame Aqui for the Americanas.com brand.

The year of 2020 was also marked by the rapid growth of Ame, our mobile business platform, which has already reached 17 MM downloads. Throughout the year, we established several strategic partnerships, accelerating the acceptance outside our platform, with a total of approximately 3 MM establishments. Ame continues to evolve in the strategy of building the financial platform and expanding the Americanas Universe to new business models. Accordingly, Ame made two important acquisitions: BIT Capital (Fintech specialized in Core Banking solutions) and Parati (Bank as a Service & RegTech).

In 2021, we started a new growth route, already showing a significant acceleration in Jan/21 (+83%) and Feb/21 (+90%), driven by the strong performance of the Marketplace, and we are extremely motivated to anticipate our 3 year strategic plan (2020-2022). In this new journey, we will develop and expand our reach beyond eCommerce, entering with scale and speed in new segments, generating growth, profitability, and powerful network effects.

Accordingly, as disclosed in a Material Fact (02/19/21), the Boards of Directors of Americanas and B2W approved the study of a potential operational combination of businesses, with the objective of maximizing the customer experience and a new journey of value creation in the Americanas Universe.

We remain firm in our purpose of CONNECTING PEOPLE, BUSINESS, PRODUCTS AND SERVICES, and above all, fulfilling our important social role in the country during this moment of uncertainty.

We take the opportunity to thank our team for their engagement and dedication. We also thank our suppliers, Marketplace Sellers, and, above all, our Customers.

Marcio Cruz, CEO - B2W Digital

KEY INDICATORS	4Q20	4Q19	Delta	2020	2019	Delta
9,184	6,647	+38.2%	27,721	18,778	+47.6%
Total GMV (R$ MM)
5,590	4,267	+31.0%	16,821	11,589	+45.1%
Marketplace (R$ MM)
60.9%	64.2%	-3.3 p.p.	60.7%	61.7%	-1.0 p.p.
Marketplace (% of Total GMV)
87.2	29.5	+57.7	87.2	29.5	+57.7
Assortment (Items/MM)
7.4	8.1	-0.8	40.4	24.9	+15.5
# Sellers (New/Thou)
87.3	46.8	+40.5	87.3	46.8	+40.5
# Sellers (Base/Thou)
83.0%	80.1%	+2.9 p.p.	82.0%	76.7%	+5.3 p.p.
Mobile (% of Traffic)
4Q20 HIGHLIGHTS

Potential business combination: Americanas and B2W

Americanas and B2W announced the beginning of analyses for a potential operational combination of businesses, with the objective of maximizing the customer experience in a new journey of value creation in the Americanas Universe.

Bond issuance of US$ 500 MM

B2W Digital successfully debuted on the international market with the issuance of bonds in the amount of US$ 500 MM and a 10 year term, in order to optimize the capital structure.

Active Customers: 21.4 MM

B2W Digital reached 21.4 MM active customers (at least one purchase in LTM) in 2020 (+5.4 MM vs. 2019).

Live Commerce (Americanas ao Vivo)

B2W Digital held 30 lives in 4Q20 with influencers and Marketplace Sellers. With over 35 hours of content, we attracted 495 thousand unique visits and 70 thousand orders.

Fast Delivery

In 4Q20, we completed 1.9 MM deliveries within 3 hours (11.5% of the total). Deliveries within 24h (Same Day) represented 40% of the total.

5 new Fulfillment Centers (FCs) in 2020

LET'S opened 5 new FCs, reaching a total of 22 FCs in 12 States, and accelerated the automation plan with 7 FCs equipped with sorters at the end of the year.

Expansion of Americanas Mais

The loyalty program that offers free shipping and fast delivery has been expanded throughout Brazil and become free for all customers of Americanas.com. Customers will also have access to other benefits in a gamified way, such as streaming and special offers, stimulating purchase frequency and loyalty.

New Marketplace platform

In Jan/21, the B2W Marketplace announced the launch of a new platform to increase the competitiveness of Sellers and improve service levels. The new policies for commission structures, order cancellation, and free shipping already went into effect, with benefits for Sellers according to their service levels.

B2WADS: +219% in 4Q20

Revenue from B2WADS increased 219% in 4Q20 (vs. 4Q19) and showed an important improvement in profitability. B2WADS is a complete advertising platform focused on leveraging the scale of partners, including Sellers and Suppliers.

Ame: TPV of R$ 5.9 Bn in 4Q20

The TPV of Ame continued to grow rapidly, reaching R$ 5.9 Bn in 4Q20 (+202% vs. 4Q19).

Ame: Acquisitions of Bit Capital and Parati

In order to accelerate its development and maximize business fronts, Ame announced the acquisitions of Bit Capital (Fintech specialized in Core Banking solutions) and Parati (BaaS & RegTech).