Companhia Brasileira de Distribuição : 4Q19 Results Presentation

EARNINGS

4th QUARTER & YEAR OF 2019

February 20th, 2020

FOCUS ON FOOD RETAIL AND	CONSTRUCTION OF A PORTFOLIO
STRUCTURE SIMPLIFICATION	ADHERING TO MARKET DEMAND

HIGHLIGHTS

R$ 61.5 BILLION

of revenue

+14.8% vs 2018

• Divestment of Via Varejo concluded
• Acquisition of Grupo Éxito
• Strengthening of Corporate Governance, with the approval of GPA admission to Novo Mercado carried out by B3 on February 14, 2020

• Assaí: 22 openings
• Extra Super conversions: 92 stores
• Refurbishment of 20 Pão de Açúcar stores
• Minuto: 10 new stores
• Segmentation of Hyper's portfolio

2019:

DIGITAL TRANSFORMATION & INOVATION

• Growth of over 40% in e-commerce driven by the expansion of the
  "Express" and "Click & Collect" delivery models
• Expansion of James Delivery operation to 19 cities
• Creation of Stix Fidelidade

CONSISTENT ADVANCE IN THE PRIVATE LABEL STRATEGY

• Increased penetration of Private Label Brands to 12.7% in Multivarejo's food category in 4Q19 (+50 bps vs 4Q18)

GRUPO ÉXITO

• Consolidation of Grupo Éxito's operations in GPA results from Dec/19: contribution of R$ 2.4 billion to gross revenue and R$ 266 million in GPA Consolidated
  EBITDA

2

GPA CONSOLIDATED Post IFRS-16

(R$ million)		4Q19		4Q18			2019	2018
Gross Revenue	18,926	15,237	24.2%	61,543	53,615	14.8%
Net Revenue (*)	17,321	14,012	23.6%	56,635	49,343	14.8%
Gross Profit(*)	3,683	3,072	19.9%	12,185	11,127	9.5%
Gross Margin(*)		21.3%		21.9%		-60 bps		21.5%		22.6%		-110 bps
Selling, General and Adm. Expenses	(2,434)	(2,054)	18.5%	(8,354)	(7,602)	9.9%
% of Net Revenue	14.1%	14.7%		-60 bps	14.8%	15.4%		-60 bps
Adjusted EBITDA(1)(2)(*)	1,290	1,139	13.3%	3,967	3,677	7.9%
Adjusted EBITDA Margin(1)(2)(*)		7.4%		8.1%		-70 bps		7.0%		7.5%		-50 bps

GROSS REVENUE	GROSS PROFIT	SG&A	ADJUSTED EBITDA
 Evolution driven mainly by the 	Reflects the increase of Assaí´s share 	Dilution of 60 bps in the quarter and	 Growth driven by the solid
successful expansion of Assaí	and a higher promotional investment	60 bps in the year due to initiatives to	performance by Assaí and
and the consolidation of the	at Multivarejo	reduce retail expenses and the	consolidation of Grupo Éxito in
Grupo Éxito in Dec/19		continued control of Assaí expenses,	Dec/19
		despite strong expansion

Consolidated Controlling Shareholders' NET INCOME reached R$ 790 MM in the year, with margin of 1.4%

1. Earnings before interest, taxes, depreciation and amortization. (2) Adjusted for Other Operating Income and Expenses. (*) Excludes non-recurring effects: in Assaí they totaled R $ 145 million in 4Q18 and R$ 436 million in 2018 related to ICMS ST credits; in Multivarejo, the effects of 2018 refer to the sale to third parties of part of the tax credits related to the exclusion of ICMS from the PIS / COFINS calculation bases, in the net amount of R$ 45 million realized in 2Q18.

3

AVAILABLE RESOURCES

• Cash position Dec/19: R$ 8.0 billion in funds available
• R$ 900 million in pre-approved / confirmed credit lines
• Potential for asset monetization

NET DEBT

• Higher leverage is in line with that planned by the Company due to the LATAM restructuring (acquisition of the Grupo Éxito) and remains at an appropriate level
• Maintenance of high Capex(*) in Brazil at R$ 2.1 billion in the year

(*) Net of sale of tangible assets

FINANCIAL RESULT & DEBT Post IFRS 16

FINANCIAL RESULT

(R$ million and % of net revenue)

-30bps

2.1%

20bps

2.1%

1.8%

2.6%

1,061

998

1,206

1.5%

1.7%

442

212

250

2018

2019

2019

4T18

4T19

4T19

Food Business

Food Business

Consolidated

Food Business

Food Business

Consolidated

Brazil

Brazil

Brazil

Brazil

NET DEBT

Net Debt/ EBITDA(1)

-1.3x

-1.1x

-1.5x

-0.9x

-1.1x

-0.5x

-0.8x

-0.3x

1T

2T

3T

4T

2018

2019

4

(1) Adjusted EBITDA Pre IFRS 16, accumulated in the last 12 months. For 2019, pro forma Adjusted EBITDA was used, that is, considering 12

months of consolidation of the Éxito Group's operations.	4

Assaí - Post IFRS 16

Increase of more than 3x in sales in the last 5 years, reaching 28.5% market share(**)

(R$ million)		4Q19		4Q18			2019	2018
Gross Revenue	8,740	7,300	19.7%	30,378	24,923	21.9%
Net Revenue	7,994	6,698	19.3%	27,797	22,899	21.4%
Gross Profit(*)	1,367	1,077	26.9%	4,578	3,729	22.8%
Gross Margin(*)		17.1%		16.1%		100 bps		16.5%		16.3%		20 bps
Selling, General and Adm. Expenses	(749)	(636)	17.8%	(2,656)	(2,207)	20.4%
% of Net Revenue	9.4%	9.5%		-10 bps	9.6%	9.6%		0 bps
Adjusted EBITDA(1)(2)(*)	624	446	39.8%	1,946	1,550	25.5%
Adjusted EBITDA Margin(1)(2)(*)		7.8%		6.7%		110 bps		7.0%		6.8%		20 bps

GROSS REVENUE	GROSS PROFIT	SG&A	ADJUSTED EBITDA
 Continued strong growth driven	 Accelerated maturation of new	 Strict control over expenses	 Evolution of + 25.5% in the year,
by the excellent performance of	stores	and productivity gains	addition of R$ 396 MM, up to 7.0%
expansion and same store	 Concentration of openings in	 Growth lower than revenue,	of margin
growth	regions where it already operates	even with 22 new stores and	 Pre-IFRS 16, margin reached 6.3%,
	 Lowest shrinkage level in the	Assaí entering 3 new states	reaching the guidance, despite more
	banner's history	in the year	store opening than expected

(1) Earnings before interest, taxes, depreciation and amortization. (2) Adjusted for Other Operating Income and Expenses. (*) Excludes non-recurring effects, which totaled R$ 145 million in 4Q18 and R$ 436 million in 2018.

(**) Source market share: Nielsen

5

Assaí

Business model strength

• 22 stores opened in 2019, with 13 stores in 4Q19, a quarterly record, and entry into 3 new states
• More than 430 thousand new Passaí cards were issued in 2019, surpassing the mark of 1 million credit cards issued since its launch

• Launch of pilot project for "Passaí" card machines in São Paulo, with conclusion scheduled for 1H20. Distribution in 166 brick and mortar stores to more than 2.5 million business customers

166 STORES

6

Assaí

Priorities for the coming years

Consolidation of Assaí's national footprint

• Continuity of accelerated organic expansion, with approximately 60 stores to be opened in the next 3 years
• ~20 Extra Hiper stores under study for conversion in Assaí, with approximately 5 stores expected for 1H20 and 5 stores for 2H20
• Focus on reaching gross revenue of R$ 50 billion in 2022

Financial solutions

• Expansion and higher penetration of financial products and services mainly through the "Passaí" banner credit card and card machines

Operational efficiency

• Evolution of the processes and systems to support the growth of the banner
• Continuity of control in expenses, despite the strong expansion
• Maintenance of positive Working Capital

7

7

MULTIVAREJO - Post IFRS-16

	(R$ million)			4Q19	4Q18				2019			2018
	Gross Revenue	7,746			7,937			-2.4%			28,723			28,693	0.1%
	Net Revenue(*)	7,145			7,314			-2.3%			26,654			26,445	0.8%
	Gross Profit(*)	1,715			1,995			-14.0%			7,006			7,399	-5.3%
	Gross Margin(*)			24.0%			27.3%			-330 bps			26.3%			28.0%		-170 bps
	Selling, General and Adm. Expenses	(1,332)			(1,417)			-6.1%			(5,324)			(5,395)	-1.3%
	% of Net Revenue	18.6%			19.4%			-80 bps	20.0%			20.4%		-40 bps
	Adjusted EBITDA(1)(2)(*)	445			629			-29.3%			1,907			2,178	-12.4%
	Adjusted EBITDA Margin(1)(2)(*)			6.2%			8.6%			-240 bps			7.2%			8.2%		-100 bps
	GROSS REVENUE	GROSS PROFIT				SG&A				ADJUSTED EBITDA
	Performance reflects the challenging	 Reflects investments in				Significant reduction in			Mainly reflects the lower
	competitiveness throughout the
	scenario of 2019, with slow recovery of	expenses due to discipline in			level of gross margin
	the economy	year and occasional impacts in	expenses control
 Accelerated number of store renovations	4Q19
	/ conversion: 112 stores

1. Earnings before interest, taxes, depreciation and amortization. (2). Adjusted for Other Operating Income and Expenses. (*) The effects of 2018 refer to the sale to third parties of part of the tax credits related to the exclusion of ICMS from the PIS / COFINS calculation bases, in the net amount of R$ 45 million realized in 2Q18.

8

MULTIVAREJO

Strengthening the value proposition through portfolio transformation

super

hiper

• Implementation of the new portfolio segmentation:
• • ~80 high performance stores
  • ~20 stores mapped for possible conversion into Assaí
  • ~10 stores mapped for possible sale
• 4Q19 performance was negatively impacted mainly by the performance of the non-food category (strong base of comparison with SSS of ~ 20% in the average of the last 2 years)

• Acceleration of conversions in 4Q19:
• • 18 stores were converted into Mercado Extra, now also reaching the Brazilian Northeast region
  • 15 stores converted to Compre Bem
• In the year, 92 Extra Super stores were converted, totaling 70% of the portfolio, resulting in 100 Mercado Extra stores and 28 Compre Bem stores
• Mercado Extra and Compre Bem showed significant evolution in sales, volume and customers traffic

• Reinforcement of customers' shopping experience with the concept of the latest generation of stores: multichannel, multisensory and multisolutions store
• 18 stores were revitalized in 4Q19, totaling 46 refurbished stores which represent around 40% of the banner's total sales
• Consolidation of the commercial model in other stores: implementation of Fresh new solutions and the reinforcement of commercial activation

• Correct value proposition: continuous increase in double-digit sales and profitability gains throughout the year
• Beginning of the resumption of format expansion, with 10 new Minuto Pão de Açúcar stores and the implementation of two new concepts: Minuto Office and Minuto Bairro + Café
• Consolidation of the Adega Platform (online + store) as a specialized destination for buying wines in São Paulo: it represented 61% of Multivarejo's online wine sales in
  2019 while the physical store already represents 20% of Proximity's wine sales

1. Does not include 123 drugstores, 72 gas stations and Aliado Mini Mercado stores

112 STORES	181 STORES	185 STORES	237 STORES (**)
			9

Multivarejo - Main levers to increase sales

Immediate effect starting in 1Q20

• Maturation of Compre Bem, Mercado Extra and Pão de Açúcar stores
• Continued double-digitgrowth in Proximity formats
• Continued growth in food e-commerce
• Increased promotional intensity and communication in Extra Hyper
• Greater share of Private Label Brand products in the total sales of Multivarejo, focused to increase its share to 20% by year-end (vs. 12.7% in 4Q19)

Effect from 2Q20 to 4Q20

• Review of the value proposition of the Non-Food segment and new contractual models of negotiation with suppliers from Jan/20
• Restructuring of price policies in Extra Hiper stores (according to the profile of the target audience of each store)
• Reduction of stockout level at the gondolas: implementation of new logistical support systems, as well as review of the exposure layers' parameters and demand adjustments

10

Multivarejo - Main levers to increase profitability

Immediate effect starting in 1Q20

• Maturation of remodeling and conversion of Compre Bem, Mercado Extra and Pão de Açúcar stores: +30 bps
• Shrinkage reduction: focus on reducing assortment and integration with store supply practices: +50 bps
• Maintenance of cost controls, maintaining the ratio of SG&A to sales

Gradual Effect starting in 2Q20

• Review of the value proposition of the Non-Food segment and new contractual models of negotiation with suppliers from Jan/20: +30 bps
• Reduction of administrative costs (20bps) and control over sales expenses, without impact the service level
• Review of the Extra Hiper store portfolio:
• • ~ 20 stores (under study for conversion in Assaí): 5 stores expected for 1H20 and 5 stores for 2H20
  • ~ 80 stores (high performance): strengthening of competitive advantages to further increase profitability and value proposition to the customer
  • ~ 10 stores (mapped for potential sale)
• Additional refurbishment of 20 Pão de Açúcar stores to the concept of the last generation;
• Expansion of 5-10new Pão de Açúcar stores, starting in 2Q20
• Expansion of 20-30 new Minuto Pão de Açúcar stores, starting in 2Q20
• Conclusion of conversions from Extra Super units to Mercado Extra

11

DIGITAL

TRANSFORMATION

1 E-COMMERCE

More than 40% evolution, with expansion of Express (116 stores) and Cick & Collect (119 stores) delivery formats, in addition to the opening of the first e-store in RJ

2 JAMES DELIVERY

Expansion of the operation to 19 cities and GMV growth of 446%, with a 15x increase in the number of orders when compared to the beginning of the year

3 STIX FIDELIDADE

Creation of a platform of products and services to earn and redeem points, in partnership with RD to more than 50 million loyal customers

CHEFTIME

4 Acquisition of the foodtech startup that registered more than 200 thousand meals sold, in addition to presence in 200 physical stores and e-commerce

5 CLIENTE MAIS & CLUBE EXTRA

Loyalty programs accumulate more than 20 MM of loyal customers, + 14% vs 2018 and had more than 11 MM downloads, + 48% vs 2018

6 PARTNERSHIPS WITH STARTUPS

14 food startups entered the shelves of more than 180 stores and generated more than 300 thousand units in sales

12

INTERNATIONAL OPERATIONS

4Q19 - 2019 - ACCOUNTING VIEW (December / 2019 only)

MAIN CONTRIBUTIONS IN THE GPA RESULT

GROSS SALES

• R$ 2.4 billion for the month of December

GROSS PROFIT

• R$ 602 million, equivalent to 28.0%, adding 20bps in Consolidated GPA gross margin

ADJUSTED EBITDA

• R$ 266 million, with a high level of margin by 12.4%

2019 - PRO FORMA VIEW (considering 12 months of 2019)

ÉXITO'S HIGHLIGHTS

STRENGTHENING THE PORTFOLIO Conversions and openings in the year:

• 7 Éxito Wow stores
• 14 FreshMarket (6 Col, 5 Uru, 3Arg)
• 1 Carulla Smart Market
• 12 Surtimayorista

NET SALES

• R$ 18.4 billion, driven by the best sales performance in Colombia in the last 3 years
• Strong contribution from new formats and omnichannel growth

ADJUSTED EBITDA

• R$ 1.5 billion, with a margin of 8.3%, mainly due to the result in Colombia

Acquisition of 96.57% of Éxito's capital in Nov / 19. For the results, only the month of December 2019 was considered

13

ÉXITO - Perspectives

• 20 to 24 stores (including openings, conversions and renovations) inclunding at least 6-7 Éxito WOW, 6-7 Carulla FreshMarket and 8-10 Surtimayorista stores.
• Revenue growth in retail and in complementary businesses
• More than 50% of total sales benefited by innovative actions: WOW, FreshMarket, Cash & Carry and omnichannel.
• Recurring EBITDA margin at least in line with the level presented in 2019.
• CAPEX: approximately COP $ 400,000 million for store optimization, innovation, digital transformation and real estate.

• 4 to 6 stores (including openings, conversions and renovations): 1 WOW, 2-3 FreshMarket and 2-3 Express stores
• Recurring EBITDA margin at least in line with the level presented in 2019

• Strengthening of the FreshMarket concept , with 2 to 3 stores (among openings, conversions and renovations)
• Development of occasional leasing in the current real estate portfolio

14

ANNEX

15

GPA FOOD OVERVIEW

Diverse formats to meet diverse consumer needs

MULTIVAREJO

Hypermarkets and	Supermarkets	Proximity	Commercial Centers,
Drugstores
Supermarkets
		and Gas Stations
29.0%	12.5%	2.3%	4.8%
Sales	Sales	Sales	Sales

#Stores	#Stores	#Stores	#Stores
Drugstores: 123
Hypermarkets: 112	Supermarkets: 185	Minuto: 85
Gas stations: 72
Supermarkets: 181		Mini Extra: 152
	GLA~285,000 m2

Food Delivery

As of December 31, 2019. as a % of gross sales

ASSAÍ

Cash & Carry

51.4%

Sales

#Stores

Assaí: 166

16

MULTI-FORMAT FOOD PLAYER

Focused on meeting the needs of

clients related to different needs and

occasions through the following

formats: hypermarkets, supermarkets,

drugstores and gas stations. Extra banner offers food, electronics and home appliances, and apparels.

265 stores*

Convenience format that offers a differentiated assortment and a practical and cozy environment, in stores measuring around

300 m2. Prioritizes customer comfort

through customized services and

initiatives.

85 stores

• Excluding the 123 drugstores and 72 gas stations Reference date: February 19, 2019

The Pão de Açúcar banner refers to

modern neighborhood supermarkets in

the Premium segment, which offer service, quality and a variety of products in a convenient and comfortable environment. Sustainability is part of the strategy and value of the business.

185 stores

Convenience format to meet day-to-

day needs, mainly staples and

perishables. In stores measuring around 300 m2, its value proposition is to offer convenience at the best price.

152 stores

The Cash & Carry segment focuses on customers from small and midsized companies and on end consumers seeking products at more competitive prices. Offers groceries, food, perishables, beverages, packaging, personal care and cleaning products, among others.

166 stores

Supermarket format dedicated to

meeting the needs of B and C income groups, with the focus on excellence in customer service and on providing services compatible with those of regional supermarkets.

28 stores

17

INVESTOR RELATIONS TEAM

Tel.: [phone] [e-mail] www.gpari.com.br

Disclaimer: Statements contained in this release relating to the business outlook of the Company, projections of operating/financial results, growth prospects of the Company and market and macroeconomic estimates are merely forecasts and are based on the beliefs, plans and expectations of Management in relation to the Company's future. These expectations are highly dependent on changes in the market, Brazil's general economic performance, the industry and international markets, and hence are subject to change.

18