COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO

Authorized Capital Publicly-Held Company

Corporate Taxpayer's ID (CNPJ/MF) 47.508.411/0001-56

COMUNICATION 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 31, 2019 the 3rd Amendment to the Energy Efficiency Framework Agreement ("3rd 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 group.

PURPOSE OF THE AGREEMENT

To 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 establishments of the Company's Multivarejo business units

("Establishments"). The Agreement provides that for the

installation and maintenance of equipment for each

Establishment, 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

Ratification of terms defined in the Agreement, with no financial

TO THE AGREEMENT

impact on the transaction.

PURPOSE OF THE 2ND AMENDMENT

Possibility to extend the initial term of some EEAs for additional

TO THE AGREEMENT

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.

PURPOSE OF THE 3RD AMENDMENT

(i) adjustment and unification of the terms of the EEAs entered

TO THE AGREEMENT

into

with each of the Establishments under the Agreement

("Substituted EEAs"); (ii) extension of the payment term for the

sale of the equipment, with the consequent increase of the term of

the Agreement and the Substituted EEAs, and (ii) modification of

the calculation of the energy savings obtained in each EEA for

the purpose of payment of GY's compensation.

DATE

OF

THE

TRANSACTION/

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

EXECUTION OF THE AGREEMENT

2015.

DATE

OF

THE

TRANSACTION/

The 1st Amendment to the Agreement was executed by the

EXECUTION

OF

THE

1ST

Company and GY on April 6, 2016.

AMENDMENT TO THE AGREEMENT

DATE

OF

THE

TRANSACTION/

The 2nd Amendment to the Agreement was executed by the

EXECUTION

OF

THE

2ND

Company and GY on December 31, 2019.

AMENDMENT TO THE AGREEMENT

MAIN TERMS AND CONDITIONS

The term of the Agreement is by December, 31, 2029.

Under the Agreement, GY is entitled to: (i) monthly

compensation calculated based on the energy savings earned at

the Establishments; and (ii) monthly payments for the supply of

energy efficiency solution equipment ("GY Investment"). The

remaining amount of GY's Investment on January 1, 2020 is due

to be paid in 120 months from January 31, 2020, with a fixed

interest rate on each monthly installment.

The Agreement may be terminated by GY 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 the Company not remedied within 60 (sixty)

days counted from the receipt by the Company of a notification

sent by the performing Party.

DETAILED REASONS FOR WHICH

The Company's management understands that the executed

THE

MANAGEMENT CONSIDERS

Agreement has observed commutative conditions and adequate

THAT

THE

TRANSACTION

HAS

compensatory payment, since: (i) it was analyzed according to the

OBSERVED

COMMUTATIVE

rules provided in its Related Parties Transactions Policy

CONDITIONS

OR

PROVIDES

("Policy"); and (ii) reflects negotiation conditions in line with

APPROPRIATE

COMPENSATORY

market practice. In addition, the Agreement serves the interests of

PAYMENT

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 3rd Amendment to the Agreement

corroborates with the energy efficiency achieved by the

Company.

DESCRIPTION OF THE MEASURES

The negotiation was conducted by the Company's management,

TAKEN AND PROCEDURES ADOPTED

independently and in accordance with its Policy.

TO ENSURE THE COMMUTATIVITY

OF THE TRANSACTION

Under the terms of the Company's Policy, the Agreement, the 2nd

Amendment and the 3rd 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

The transaction provided an optimization of the Company's

MANAGEMENT CARRIED OUT THE

energy efficiency compared to the consumption incurred prior to

TRANSACTION

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.

The 3rd Amendment will allow the Company to (i) proceed with

the payment in a longer term and (ii) benefit from greater energy

savings.

EVENTUAL PARTICIPATION OF THE

Not applicable.

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

São Paulo, January 10, 2019.

ISABELA CADENASSI

Investors Relations Officer

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CBD - Companhia Brasileira de Distribuição published this content on 10 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 January 2020 02:02:01 UTC