Companhia Brasileira de Distribuicao : Earnings Release

São Paulo, February 20, 2019 - GPA[B3: PCAR4; NYSE: CBD] announces its results for the fourth quarter and full year of 2018. Due to the ongoing divestment of the interest held by GPA in Via Varejo S.A., as announced in the material fact notice of November 23, 2016, the operations of Via Varejo are treated as discontinued operations. Accordingly, net sales and other profit or loss accounts were adjusted retrospectively, as required under IFRS 5/CPC 31, approved by CVM Resolution 598/09-Non-current assets held for sale and discontinued operations. The following statements are related to the results of continuing operations. All comparisons are with the same period of 2017, except where stated otherwise. The statements regarding adjusted EBITDA and gross margin are excluding the non-recurring effects of the periods. The following statements related to net income refer to the net income of the controlling shareholders of the continuing operations.

4Q18 & 2018 EARNINGS RELEASE

GPA'sfood net income more than doubles to R$1.3 billion in 2018

Multivarejo's best performance of recent years, driven by higher revenue growth, which leveraged market share gains and netincome growth of nearly five-fold

Assaí continued to deliver strong sales and acceleration in net income growth, which nearly doubled in the year, with net margin of 4.6%

GPA Food:

• ▪Gross sales of R$15.2 billion in 4Q18, maintaining a strong growth rate of 12.1%, driven by Multivarejo's continued improvement and Assaí's solid performance. In theyear, gross sales were R$53.6 billion, with solid growth of 10.7%;

• ▪Robust growth in adjusted EBITDA of 29.4% in 4Q18 to R$801 million, with margin expansion of 70 bps to 5.7%. In 2018, adjusted EBITDA margin expanded 60 bps to 5.8%, supported by improvement in line with guidance at Multivarejo and above-expectation growth at Assaí;

• ▪Strong net income growth in the quarter of 88.1% to R$471 million, while net margin expanded 140 bps to 3.4%. In the year, net income reached R$1.3 billion, with net margin doubling to 2.6%;

• ▪Solid financial structure supported by the stability at low levels of the leverage ratio, which ended the period at -0.32x

  EBITDA;

• ▪Focus on adjusting the store portfolio to reinforce the multi-channel, multi-format and multi-region presence better aligned with consumer demand. The improvement has translated into real sales growth above the industry average, which in turn has supported better results in all segments.

Multivarejo:

• ▪Gross sales of R$7.9 billion in 4Q18, withsame-store sales growth of 4.5%, confirming the recovery registered since March. In the year, gross sales came to R$28.7 billion, accompanied by market share gains, led by the Extra Hiper and Pão de Açúcar banners.

• ▪Strengthening of Digital Transformation project:(i) higherpenetration of loyalty tools and personalization of the "My Discount" app and "My Rewards" initiative, with the number of downloads doubling to over 7.5 million; (ii) robust growthin food e-commerce of 63.5% in 4Q18, confirming the leadership position in the industry; (iii) acquisition of James Delivery and strategic partnership with Cheftime to reinforce the omnichannel strategy;

• ▪Repositioning of Private-Label Brands:increase in penetration to around 11.5%, with the goal of increasing penetration to 20% by 2020 driven by innovation and new product launches;

• ▪Strong dilution of operating expenses by 150 bps in 4Q18,due to decrease in personnel expenses and rigorous control over general expenses.In the year, dilution of expenses was 80 bps, with a nominal drop of 2.2%, despite the inflation in the period;

• ▪Significant growth in adjusted EBITDA of 21.2% to R$400 million in the quarter,with margin expansion of 80 bps to 5.5%.

  In the year, adjusted EBITDA was R$ 1.5 billion (+13.0%), with margin expanding 50 bps to 5.5%;

• ▪Net income in 4Q18 amounted to R$120 million,with net margin of 1.6%, reversing the net loss reported in 2017. In 2018, net income grew nearly five-fold compared to 2017, to R$246 million;

Assaí:

• ▪Gross sales were R$7.3 billion, representing yet another quarter of strong growth (+23.6%) and addition ofR$1.4 billionin sales, with market share gains. In the year, gross sales came to R$24.9 billion, representing robust growth of 24.2%, adding sales ofR$4.9 billioncompared to 2017;

• ▪Solid same-store sales growth of 9.9% in the quarter, driven by new commercial actions, successful marketing campaigns and adjustments to product assortment;

• ▪Inauguration of 10 new stores in the quarter in 6 different states, closing 2018 with 18 new units and reinforcing the commitment to continue growing in the coming year;

• ▪Gross margin stood at 16.0% in the quarter, in line with 4Q17. In the year, gross margin expanded 30 bps, mainly reflecting the accelerated maturation of new stores;

• ▪Strong dilution of operating expenses of 60 bpsin 4Q18, despite the accelerated pace of store expansions, supported by efficiency gains;

• ▪Adjusted EBITDA was R$ 401 million in 4Q18,representing strong growth of 38.7%, with adjusted EBITDA margin expanding 70 bps to 6.0%. In the year, adjusted EBITDA was R$1.4 billion, 34.1% higher than in 2017, with margin expansion of 40 bps to 6.0%;

• ▪Net income in the quarter posted robust growth of 37.9% to R$351 million, with net margin of 5.2%. In the year, net income advanced 95.2% to R$1.1 billion, with net margin of 4.6%.

Outlook for 2019:

• ▪Net Sales:

  • ○Multivarejo:same-store sales growth of roughly 100 bps above IPCA inflation;

  • ○Assaí:continuity of strong expansion, with same-store sales growth of roughly 200 bps above inflation and total sales growing over 20%;

• ▪EBITDA:expansion in both businesses, of which:

  • ○Multivarejo:increase of EBITDA margin by around 30 bps vs. 2018, due to (i) projects to optimize and repositioning the portfolio, especially at Mercado Extra and Compre Bem; and (ii) operating efficiency gains, especially in shrinkage, logistics costs and SG&A growth in line with inflation;

  • ○Assaí: EBITDA margin expansion by around 30-40 bps vs. 2018, driven mainly by the quality of the stores opened in recent years, which haveshown a faster maturation.

• ▪Other operating income and expenses:stability at 2018 level, around R$ 200 million per year.

• ▪CAPEX: maintenance of high capex around R$1.7 billion - R$1.8 billion,focusing on higher-return projects related to the expansion/optimization of formats, namely:

  • ○Assaí:opening of 15-20 stores

  • ○Pão de Açúcar:continuation of the store renovation strategy (10-15 stores) and resumption of the banner expansion process

  • ○Proximity and specialized businesses:opening of at least 15 stores and moving forward in the plan to modernize drugstores and expand gas stations

  • ○Supermercado Extra:continuity of revitalization of Mercado Extra stores and conversions into Compre Bem, totaling around 100 renovated and converted Extra Super stores

  • ○Malls:initiatives to improve occupancy cost, especially at Extra Hiper

• ▪Digital Transformation:focus on innovation and acceleration of the omnichannel strategy to offer customers more customized solutions in order to ensure a better shopping experience;

  • ○Loyalty apps Cliente Mais and Clube Extra:expand significantly the active customer base and increase the app'srelevance among users, in addition to maximize the potential participation of industry on the platform;

  • ○Maintain leadership in the food e-commerce operation in Brazil:accelerating the growth pace of 2018 and the conversion rate of orders, with improvement of the service quality through:

    • -Operating efficiency gains;

    • -Strengthening of "Express" and "Click & Collect" services at Pão de Açúcar and expansion of theseservices to Extra, with over 120 stores offering these concepts by year-end;

    • -Expansion of Adega platform, launched in 2018, ensuring an omnichannel experience.

• ○Cheftime:roll-out across 30 Pão de Açúcar and 3 Minuto Pão de Açúcar stores and expansion of e-commerce sales within 1Q19, with continuity of expansion across the metropolitan area of São Paulo until the year-end;

• oRoll-out of"James Delivery" multi-service platform(last miler) in São Paulo in 2Q19 and expansion to 10 cities by year-end;

• oEvolution of the offer ofdigital payment methods;

MESSAGE FROM MANAGEMENT

The year 2018 broughtexcellent results for GPA. We delivered sequential important market share gains and solidresults for the Group's businesses. The accelerated store expansion at Assaí over recent years supported strong salesand substantial net income growth. At Multivarejo, sales improved sequentially, accompanied by higher profitability. Our multi-channel, multi-format and multi-region portfolio, combined with the optimization of our store portfolio through conversions, renovations and new concepts, has ensured a better offering of products and services for our customers, further strengthening their power of choice. We also advanced in the digital transformation of ourbusinesses, reinforcing GPA's pioneering efforts on fronts such as food e-commerce and loyalty programs, which supported efficiency gains in our search for new revenue streams.

Despite a macroeconomic scenario still marked by recovery, we maintained ahigh level of investment in the yearof over R$1.7 billion, or 28.8% more than in 2017, which reinforces our confidence in the execution of our business strategy and in the recovery of the Brazilian economy. We posted gross sales of R$53.6 billion, 10.7% higher than in 2017, and market share gains at both Multivarejo and Assaí, with sequential improvements in our results, which led net income to more than double to R$1.3 billion in the year.

At Assaí, 2018 was marked bysolid and strong sales growth, which was leveraged by the banner's nationwidefootprint. Assaí, which ended the year with 144 stores, maintained its accelerated pace of store openings: 18 new units. The highly effective strategy for determining the sites of these stores supported above-expectation performance and the best result in sales per square meter of the last five years. This year, Assaí also was included on the list ofBrazil's Most Valuable Brands compiled by Interbrand.

Meanwhile, Multivarejo deliveredimportant revenue growth, reflecting the more dynamic commercial actions, the better positioning of banners and thehigher penetration of loyalty tools and customization of the "My Discount" app and "My Rewards" initiative. Over the year, the Extra Super and Proximity formats posted significant improvement intheir performances, while the Pão de Açúcar banner maintained its high profitability.

We made important adjustments in the portfolio, with improvements within the formats: 15 Pão de Açúcar stores, totaling 20 stores renovated to the new model, which focuses entirely on the shopping experience and on strengthening the banner's value proposition.Another 23 Extra Super stores were remodeled under the Mercado Extra concept and 13 stores were converted into Compre Bem, which since their conversion already have been delivering strong growth.

Another important action was therepositioning of our Private-Label portfoliowith a priority on improving quality and price competitiveness, which has led to an increase in the share of these products in the Super, Hyper and Proximity formats. Additionally, it has strengthened our competitiveness in regional markets and our loyalty-building efforts. In 2018, we launched 500 new products, supported by a new communication model and promotional campaigns.

We also created theDigital Transformation departmentand began working more closely with foodtech startups. We prospected over 350 companies in the industry, which resulted in a partnership with Cheftime, online subscription service and sales of gastronomic kits, and in the acquisition of James Delivery, a multiservice delivery platform for various products. We also inaugurated Pão de Açúcar Adega, a platform formed by an exclusive online wine shop with nationwide delivery, an application and a brick-and-mortar store (in São Paulo city) to give consumers a truly omnichannel experience.

Looking to the future also means having our management integrated withsustainability principles, assessing risks and identifying opportunities to create value for all our stakeholders. As a transformational agent and a link in a chain, we adopt responsible sourcing management that include aspects such as preserving species, animal welfare, combating deforestation and verifying adequate work conditions.

We have a highly motivated and diverse team of more than 100,000 employees across Brazil. We were able to surpass the mark of 30% women in leadership positions (managerial level and higher) and increased to 21% the percentage of persons with disabilities on our team.

Consistent with our commitment to diversity, we launched the Manifesto of Senior Male Leaders for Gender Equality and created two other Affinity Groups, for Racial Equality and LGBTI+, which complement the activities of the Gender Equality Committee created in 2013. All these actions, combined with others to value our people, promote conscientious consumerism, protect the links of the production chain, preserve the environment and engage society reinforce the pillars that guide our business strategy.

We ended 2018 with very positive progress and solid and sustainable results in our businesses, which are accomplishments that reflect the engagement and capacity of our entire team. We continue working to ensure a storeportfolio that meets consumers' needs, products and initiatives that offer the best options to our shareholders, suppliers, employees and, most importantly, a permanent focus on our customers.

Peter Estermann

Chief Executive Officer