Companhia Brasileira de Distribuicao : Material Fact - TRS

COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO AUTHORIZED CAPITAL PUBLICLY-HELD COMPANY

CNPJ/MF No. 47.508.411/0001-56

NIRE 35.300.089.901

MATERIAL FACT

Companhia Brasileira de Distribuição ("Company" or "GPA"), in compliance with Brazilian Law No. 6.404/76 and CVM Instruction No. 358/02 and in addition to the Material Facts disclosed on November 03, 2016 and November 23, 2016, announces to its shareholders and the market in general that, on this date, in a meeting of the Board of Directors of the Company, it was authorized the sale of part of the equity interest held in Via Varejo S.A., in the form of a TRS to be signed with a top-notch Brazilian financial institution. Such sale shall comprise 50,000,000 common shares of such company, corresponding to 3.86% of its capital stock, to be operationalized on December 27, 2018, on the trading environment of B3 S.A. - Brasil, Bolsa, Balcão.

The TRS concludes the first step of the divestiture operation strategy in Via Varejo S.A., as previously announced on the aforementioned Material Facts. Via Varejo has adopted a series of measures and restructuring which had and still have the goal to align it with the most modern techniques of resource management and policies aiming to meet the demands of all its customers and potential consumers, placing it among the most advanced companies in its business segment1. Furthermore, on November 26, 2018, the migration process to the segment of the highest governance of the Brazilian stock market, denominated Novo Mercado, was concluded.

The Board of Directors also instructed its management to actively pursuit the sale of the remainder part of the equity interest held in Via Varejo to a strategic investor. If the conditions so indicate, the same objective can be carried out through operations

1 Among the several measures implemented and under implementation are: (i) the consolidation of offline and online sales channels, including the incorporation of the sales activities developed until then by its subsidiary CNova Comércio Eletrônico S.A., and the consequent use of modern tools with the aim of enhancing their "omnicanal" strategy; (ii) the expansion of marketplace activities, with the significant growth in the number of strategic partners; and (iii) the conclusion of other strategic partnerships that bring direct and indirect benefits to its clients in the short and medium term.

available in the capital market. The target be pursued is to implement the divestiture until December 2019.

The Company will keep the market and its shareholders informed in the event of new material facts related to this matter.

São Paulo, December 21, 2018.

Daniela Sabbag

Investor Relations Officer