COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO

Authorized Capital Publicly-Held Company Corporate Taxpayer's ID (CNPJ/MF) 47.508.411/0001-56

INFORMATION ON TRANSACTIONS WITH RELATED PARTIES

Companhia Brasileira de Distribuição ("Company") in compliance with Article 30, XXXIII of CVM Rule No 480/09, announces to its shareholders and the general market that executed on December 7th, 2018, the 2nd Amendment to the Energy Efficiency Framework Agreement ("2nd Amendment to the Agreement") with GreenYellow do Brasil Energia e Serviços Ltda. ("GY"), with the following terms and conditions:

PARTIES

  • (i) Company (Contracting party); and

  • (ii) GY (Contractor).

RELATION WITH THE ISSUER

The Company is minority partner of GY. Additionally, the Company and GY are indirectly controlled by Casino, Guichard Perrachon group.

PURPOSE OF THE AGREEMENT

Set forth the general terms for supply, installation and maintenance of equipment in order to achieve greater energy efficiency, as well as reduce and monitor energy consumption in the properties of the Company's Multivarejo business units ("Properties"). The Agreement provides that for the installation and maintenance of equipment for each Property, an Energy Efficiency Agreement ("EEA") with GY must be executed, which must be in force for a maximum period of 8 years.

PURPOSE OF THE 1ST AMENDMENT

TO THE AGREEMENT

Ratification of terms defined in the Agreement, with no financial impact on the transaction.

PURPOSE OF THE 2ND AMENDMENT TO THE AGREEMENT

Possibility to extend the initial term of some EEAs for additional 3 years if the parties identify that the installation of new equipment (with greater technological innovation than those originally installed in the Properties) on the respective EEAs will generate additional reduction of consumption of energy corresponding to 10%, in KWh, in addition to that already obtained at the moment of measurement.

DATE OF THE TRANSACTION/ EXECUTION OF THE AGREEMENT

The Agreement was executed by the Company and GY on May 8, 2015.

DATE OF THETRANSACTION/EXECUTION OF THE

1ST

AMENDMENT TO THE AGREEMENT

The 1st Amendment to the Agreement was executed by the Company and GY on April 6, 2016.

DATE OF THETRANSACTION/EXECUTION OF THE

2ND

AMENDMENT TO THE AGREEMENT

The 2nd Amendment to the Agreement was executed by the Company and GY on December 7th, 2018.

MAIN TERMS AND CONDITIONS

The term of the Agreement is of 5 years.

Under the terms of the Agreement, GY is entitled to: (i) monthly remuneration calculated based on the energy savings earned in each EEA; and (ii) monthly payments for the supply and work force of equipment for energy efficiency solutions ("GY investment"). For each EEA there is a fixed term for the payment of GY investment, and on the annual debit balance, there is a fixed remuneration of 9.7% per year.

The Agreement may be terminated by either of the Parties in the following cases: (i) in the event of bankruptcy, request of judicial reorganization, winding up or judicial or extrajudicial liquidation of the other Party; or (ii) in the event of default of the obligations set forth in the Agreement by either Party not remedied within 60 (sixty) days counted from the receipt by the defaulting Party of a notification sent by the performing Party.

DETAILED REASONS FOR WHICH THE MANAGEMENT CONSIDERS THAT THE TRANSACTION HAS

OBSERVED CONDITIONS APPROPRIATE

COMMUTATIVE OR PROVIDES

COMPENSATORY

PAYMENT

The Company's management understands that the executed Agreement has observed commutative conditions and adequate compensatory payment, since: (i) it was analyzed according to the rules provided in its Related Parties Transactions Policy ("Policy"); and (ii) reflects negotiation conditions in line with market practice. In addition, the Agreement serves the interests of the Company, since the implementation of projects that aim improve energy efficiency entails, naturally, the reduction of costs for the Company.

The execution of the 2nd Amendment to the Agreement corroborates with the energy efficiency achieved by the Company.

DESCRIPTION OF THE MEASURES TAKEN AND PROCEDURES ADOPTED

TO ENSURE THE COMMUTATIVITY OF THE TRANSACTION

The negotiation was conducted by the Company's management, independently and in accordance with its Policy.

Under the terms of the Company's Policy, the Agreement and the 2nd Amendment were submitted to the Audit Committee's analysis regarding compliance with the Policy's guidelines in the transaction procedure, composed of independent members of the Company's Board of Directors, and subsequent approval by the Company's Board of Directors.

REASONS FOR WHICH THE MANAGEMENT CARRIED OUT THE TRANSACTION

The transaction provided an optimization of the Company's energy efficiency compared to the consumption incurred prior to the implementation of the project. In the first three years of the project, the Company achieved an average reduction in energy consumption of around 24%, corresponding to the approximate annual amount of R$ 70 million, or 216 GW/h.

EVENTUAL PARTICIPATION OF THE COUNTERPART, ITS PARTNERS OR

MANAGERS IN THE PROCEDURE OF DECISION OF THE ISSUER ON THE TRANSACTION OR NEGOTIATION OF

THE TRANSACTION AS REPRESENTATIVES OF THE ISSUER, DESCRIBING THIS PARTICIPATION

Not applicable.

São Paulo, December 7th, 2018

Daniela Sabbag Investors Relations Officer

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CBD - Companhia Brasileira de Distribuição published this content on 07 December 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 08 December 2018 01:54:05 UTC