Companhia Brasileira de Distribuicao : Presentation

PRIVATE-LABEL BRANDS

• Portfolio repositioning

• +500 products launched

• Better quality and price competitiveness

  OPTIMIZATION OF STORE PORTFOLIO

• Complete revision of assortment

• 15 Pão de Açúcar stores renovated into the new model

• 23 Extra Super to Mercado Extra

• 13 conversions to Compre Bem

DIGITAL TRANSFORMATION

• Creation of the DigitalTransformation Executive Area

  R$53.6 billion

• Partnership with Cheftime

  revenue,market share gainsin all segments

• Acquisition of James Delivery

• Strong growth in food e-commerce

  R$1.3 billion

• Launch of Pão de Açúcar Adega

• "My Discount"app: + 7.5 million downloads

net income, more than double vs. 2017

Product and service offering better aligned with consumer market needs

EXPANSION

• 18 Assaí stores inaugurated in 2018

• Over 1.7 billion in 2018

• Confidence in execution of strategy and recovery of economic scenario

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2018: Highlights

GPA Food: better operating performance across all segments resulted in solid net margin expansion

Food Business - R$ million

Gross Sales

Gross Profit

Gross Margin

SG&A

SG&A (% net sales)

Adjusted EBITDA(1)(2)(*)

Adjusted EBITDA Margin

Net Income - Controlling Shareholders - continuing operations

Net Margin- continuing operations

• Store portfolio better adapted to demands of consumer market:real sales growth above the market, with improved results;

• Strong growth in gross sales revenue:continuity of solid performance by Assaí and consistent improvement in Multivarejo;

• Significant dilution of operating expenses:rigorous control of expenses at Multivarejo and Assaí;

• Growth of Adjusted EBITDA:expansion in line with guidance at Multivarejo and above expectations at Assaí;

• Net income growthresulted in higher net margin, which doubled in the year.

(*) Excluding tax credits. (1) Earnings before interest, tax, depreciation and amortization. (2) Adjusted for Other Operating Income and Expenses.

2

Financial result improves to 1% of net revenue, with low leverage

(1)Includes unsold credit card receivables.(2)EBITDA in last 12 months.

Cash &EquivalentsCAPEX

• •Cash position in Dec/18: R$4.4 billion and unsold receivables totaling R$96 million

• •R$1.8 billion in pre-approved/confirmed creditlines

V

• •R$598 million in 4Q18, +68.7% vs. 4Q17

• •R$1.7 billion in 2018, +28.8% vs. 2017

3

Multivarejo: sales performance combined with greater operating efficiency resulted in significant increase in profitability

Gross Sales Revenue

(Growth vs. 4Q17)

+0.2%

-1.3%

3.2%

4.3%

4.5%

Same-storeCalendar effectSame-store ex-calendar effectExpansion/ Closures

Total Stores

(1)EBITDA adjusted for Other Operating Income and Expenses

(2) Excluding tax credits

(R$ million and % of net sales)

SG&A

-150 bps

23.5%

22.0%

23.4%

1,661

1,612

4Q17

6,132

4Q18

2017

Highlights

• •Gross sales revenue of R$7.9 billion in 4Q18:the level around mid-single since March.

  -80 bps22.6%

  5,996

  2018

  SSS of 4.5%, maintaining

• •Reduction in SG&A:significant decline of 3.0% and strong dilution, due to lower personnel expenses and rigorous control of general expenses.

• •EBITDA growth(1):+21.2%, with increase inEBITDA margin to 5.5%

• •Net Income:expansion to R$120 million, with margin of 1.6% .

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