Grupo Casas Bahia S A : Videoconference- New steps on the debt reprofiling of the Company

Liability Management plan

April 2024

Transformation Plan on track

Already Executed Initiatives

Back to Basics

• Positioning as an omnichannel specialist player (focus on profitability)
• Change of corporate name to Grupo Casas Bahia

Operational		Revenue | Cost | Inventory
Levers	•	Inventory reduction of R$ 1.2 Bi y/y | store assortment optimization

• 23 categories fully migrated to 3P
• 8.6 k positions reduced in 2023
• 55 brick-and-mortarstores closed in 2023 and plan for profitability reversal
• 4 DCs re-sized and +10 under review
• Greater service penetration in the stores | Retail Media (Casas Bahia Ads)

Short-Term Outlook

Results

• GMV reflecting the goal of being a profitable specialist player
• Maintaining market share leadership in core categories
• Greater service penetration
• Adjusted product mix
• Review of unprofitable online paid channels
• Gradual improvement in margins
• Full capture of the Transformation Plan initiatives
• Lean and efficient structure (run rate)

Liquidity

• Free Cash Flow of R$ 648 million in 2023 (after 3 years cash consumption)

Capital

Structure

Leverage

• Liability management contemplates average duration extension and interest rate reductions

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Cash Flow

• Improvement in cash flow over the next years
• Change in the installment plan funding model
• Capital allocation discipline (working capital and capex)
• Net positive results of tax impacts
• Labor liabilities under control

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R$4.1 billion agreement with creditors, increasing the average term from 22 to 72 months and reducing the average cost by 1.5 p.p.

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Successful progress of the Transformation Plan operational levers made possible the anticipation of this liability

management initiative with full support of the main creditors.

Agreement with main financial creditors, with an improvement of R$4.3 billion in cash flow over the next 4

years, due to a grace period of principal and interest payments for more than 2 years and interest cost reduction.

Limited scope, pre-approved by the main creditors, includes only the unsecured debt: Bank Credit Notes and Debentures.

No impact on suppliers, customers, sellers and employees.

Agreement preserves the principal value for the creditors (no "haircut"), with interest rates at market levels

and collateral.

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New Maturity Schedule

R$4.3 billion reductionin debt disbursements over the next 4 years, of which R$1.5 billion in 2024

Q1'24 Scenario

R$ mm

R$ mm

CASH DISBURSEMENT UNTIL 2027: R$4.8 bi

1.384

1.237
		721
	536
313	292	207
		139

21

4

21

16

0

0

After liability management

R$ mm

CASH DISBURSEMENT UNTIL 2027: R$0.5 bi	2.579
	1.886

									900
							300		200
			150	103	150	95		113
0	0	0
0

2024 2025

Debts Covered

6th, 7th, 8th and 9th debentures and

Bank Credit Notes (CCBs)

2026 2027 2028

		Amortization			Interest

Cost

CDI + 2.70%

2029 2030

Average Term

22 months

2024	2025		2026	2027	2028	2029	2030
			Amortization			Interest
Debts Covered						Cost		Average Term
		CDI + 1.20%	72 months
New debenture instrument

Savings of R$60mm p.a. in debt interest

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Pre-packaged Perimeter | Table of Creditors

The pre-packaged perimeter amounts to R$4.1 billion, with an approval of 55%, from partner banks

Instruments (R$ mm)	Outstanding	Other	Assets from	Partner Banks	Approvers Quorum
balance	Creditors	Partner Banks
6th Debenture Issue	1.064	804	250	10	0,30%
7th Debenture Issue	1.014	125	248	641	15,70%
8th Debenture Issue	428	428	-	-	-
(CRI)
9th Debenture Issue	1.166	-	-	1166	28,60%
Bank Credit Notes	407	-	-	407	10,00%
(=) Total	4.079	1.357	498	2.225	54,50%

Quorum Partner Banks + Assets	Quorum Partner Banks
R$2.723mm (66,8%)	R$2.225mm (54,5%)
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Details of the Proposal

The proposal under the scope of the pre-pack introduces a definitive restructure of the Company liabilities and provides the possibility of deleveraging through the conversion of part of the credit into equity

• All creditors will receive the series in proportion to their credit

Payment conditions

Series 1

R$1.5 bi

37%

Debenture

R$4.1 bi

R$2.6 bi

63%

Series 2

Partner

Series 3

Non-partner

• Interest grace period: 24 months - interest capitalization during the grace period
• Principal grace period: 30 months
• Rate: CDI + 1.50%, semester payments after grace period (1st in May/26)
• Amortization: nov/26 10%; nov/27 - 10%; nov/28 - 20%; nov/29 - 60%

Creditors who (i) maintain the current conditions of any credit lines not subject to the pre-packaged and/or (ii) offer new resources (new money) available, under conditions to be defined

• Option of (i) conversion into Equity between 18 and 36 months (80% VWAP 90d) or (ii) bullet payment (principal and interest) in Nov/30
• Rate: CDI + 1.0% p.a.
• Bullet payment (principal and interest) in Nov/30
• Rate: CDI + 1.0% p.a.

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Estimated Schedule and Main Aspects of the Process

Up to 1 week	30 days
		Objections are exhaustive and limited by law
Request Court to	Request	Approval of	Plan
approve
Review	the Plan	Implementation
Pre-packaged Plan
The Court analyzes the	The Court analyzes the	Plan is implemented, previous debt
Pre-packaged Plan, agreed	request and defines a	Proposal (and objections)	is restructured into new debt
with creditors holding 54,5%	deadline for possible	and decides on its	instruments
of the restructured debt,	objections.	approval.

presented to the Court.	.

Maintain commitments with all suppliers and insurers

Restructure of only the Company's financial debt, keeping payment conditions unchanged for all suppliers.

Bonds together all dispersed unsecured financial creditors

Pre-packaged allows for the restructuring terms set out in the plan to be binding on all unsecured financial creditors.

Operational continuity assured

(1) Reestructuring does not affect the rights of the Company's suppliers and employees, (2) it does not require monitoring of the Company's activities by the Court or a judicial administrator, (3) does not impose risk or possibility of converting the pre-packaged plan into bankruptcy, and (4 ) preserves the future possibility of bilateral or collective renegotiations.

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Benefits of the Debt Reprofiling

1. Improvement of R$4.3 billion in cash flow over the next 4 years.
2. Average debt term from 22 to 72 months, with a reduction of 1.5 p.p. in the average cost of debt.
3. New capital structure improves the credit perspective and brings flexibility in the relationships with suppliers, insurers and future creditors.
4. New cash flow improves protection against market volatility, further increasing confidence in the execution of the Transformation Plan.
5. Greater management focus on the operational levers of the Transformation Plan.

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