With a 7.9% decrease in September, Retail records its best result since

the beginning of the pandemic, according to ICVA

The decline can still be explained by the effects of COVID-19, but Retail shows recovery

for the fifth consecutive month

The COVID-19 pandemic has continued to impact the Retail sector. Excluding inflation, sales fell 7.9% in September compared to the same month last year. In nominal terms, which reflect sales revenue received by retailers, the ICVA fell 3.5%.

Despite the decline in Retail, September was the fifth consecutive month of recovery in sales. The positive highlights were Specialty Food Retail and Auto Services & Auto Parts.

"Retail recovered substantially in September. This recovery was seen in all sectors, although some of them, mainly those related to Services, are still below the level recorded in 2019," says Gabriel Mariotto, Cielo's Business Analytics Director. "Excluding Services - such as Tourism, Food and others -, the nominal ICVA would have already been positive in September," he adds.

Year on Year Retail Sales Performance

BRAZIL

6.9%

7.6%

9.1%

6.1%

6.9%

5.8%

5.2%

5.2%

5.2%

-3.5%

3.6%

2.6%

3.1%

-9.7%

-12.6%

-7.9%

-11.7%

-18.6%

-15.1%

-22.9%

-19.9%

-29.5%

-24.1%

-35.4%

-30.5%

-36.5%

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Nominal ICVA

Deflated* ICVA

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

For further information, please contact the Investor Relations area: ri@cielo.com.br

ir.cielo.com.br

Phone: +55 11 2596 8453

Year on Year Retail Sales Performance with Calendar Adjustment

BRAZIL

7.0%

5.6%

6.6%

6.1%

6.3%

7.5%

4.8%

3.9%

4.3%

2.5%

2.6%

3.7%

-3.0%

-10.5%

-9.9%

-7.4%

-12.5%

-19.4%

-12.5%

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

-36.0%

-37.1%

Feb-20

Mar-20

Apr-20

-23.8% -20.7%

-28.3%

-24.9%

-29.4%

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Nominal ICVA with Calendar Adjustment

Deflated* ICVA with Calendar Adjustment

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

INFLATION

The Broad Consumer Price Index (IPCA) increased 0.64% in September, the highest figure for the month since 2003. In the last 12 months, inflation amounted to 3.14%. According to the Brazilian Institute of Geography and Statistics (IBGE), Food & Beverages drove the acceleration of the index.

Considering the IPCA weighted by sector and ICVA weights, broad retail inflation was 4.7%, higher than in August.

SECTORS

All macro sectors showed an acceleration in sales in September. Durable Goods and Semi-durable Goods, led by Eyewear & Jewelry and Apparel, as well Non-durable Goods, led by Specialty Food Retail, recorded nominal growth. The exception was Services, despite having presented the greatest acceleration, with emphasis on the Auto Services & Auto Parts and Tourism & Transport sectors.

REGIONS

All regions recorded a downturn in sales compared to September 2019, according to the deflated ICVA with calendar adjustment. The Southeast region recorded the biggest decline in September 2020 (-8.5%), followed by the Northeast (-7.9%), Midwest (-5.3%), South (-4.7%) and North (-1.1%) regions.

According to the nominal ICVA - which does not discount inflation - with calendar adjustment, three regions recorded a positive variation in September: the North (+6.4%), South (+0.5%) and Midwest (+0.4%) regions. On the other hand, we saw a decline in the Northeast (-2.3%) and Southeast (-5.2%) regions.

For further information, please contact the Investor Relations area: ri@cielo.com.br

ir.cielo.com.br

Phone: +55 11 2596 8453

Year on Year Retail Sales Performance by Region

SOUTHEAST

6.6%

6.2%

6.9%

5.9%

6.2%

5.8%

5.7%

5.3%

4.7%

5.7%

3.2%

3.2%

3.1%

1.8%

2.4%

1.7%

1.9%

1.7%

2.1%

2.0%

7.9% 6.3%

3.8% 2.2%

-5.2% -5.9%

-12.9%

-13.8%

-14.8%

-17.1%

-32.8%-33.8%

-26.8%

-27.4%

-27.8%-28.4%

-12.4%

-8.5%

-14.8%

-9.2%

-21.7%

-14.1%

-22.4%

-16.5%

-22.2%-22.9%

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

-39.6%

-34.2%

-34.8%

-40.2%

-40.9%

-41.5%

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Nominal ICVA

Nominal ICVA with Calendar Adjustment

Deflated* ICVA

Deflated* ICVA with Calendar Adjustment

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

Year on Year Retail Sales Performance by Region

SOUTH

8.8%

8.0%

8.4%

10.0%

7.4%

7.8%

7.6%

6.1%

6.2%

7.5%

6.6%

7.0%

6.4%

5.8%

5.6%

6.8%

2.1%

4.2%

5.6%

5.7%

6.0%

2.2%

0.5%

1.8%

1.6%

0.5%

-6.2%

-8.6%

-4.7%

-6.2%

-8.6%

-11.6%

-4.7%

-9.1%

-16.4%

-16.5%

-16.1%

-17.4%

-17.3%

-17.4%

-11.9%

-17.3%

-17.1%

-14.8%

-18.3%

-17.9%

-18.0%

-19.5%

-26.9%

-27.8%

-27.9%

-28.7%

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Nominal ICVA

Nominal ICVA with Calendar Adjustment

Deflated* ICVA

Deflated* ICVA with Calendar Adjustment

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

For further information, please contact the Investor Relations area: ri@cielo.com.br

ir.cielo.com.br

Phone: +55 11 2596 8453

Year on Year Retail Sales Performance by Region

NORTHEAST

7.6%

7.7%

6.8%

6.1%

5.3%

6.2%

4.5%

4.6%

8.4%

9.8%

7.9%

6.4%

7.8%

9.0%

7.3%

6.7%

6.8%

5.8%

5.9%

6.3%

3.6%

4.7%

4.2%

3.0%

-2.3%

-4.8%

-2.6%

-6.5%

-11.4%

-7.9%

-7.0%

-8.1%

-8.1%

-9.1%

-18.2%

-19.0%

-11.7%

-14.8%

-24.3%

-25.7%

-20.8%

-30.2%

-21.5%

-31.6%

-25.4%

-26.8%

-31.4%

-36.7%

-35.6%

-32.6%

-37.3%

-36.2%

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Nominal ICVA

Nominal ICVA with Calendar Adjustment

Deflated* ICVA

Deflated* ICVA with Calendar Adjustment

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

Year on Year Retail Sales Performance by Region

MIDWEST

7.7%

7.0%

7.9%

11.3%

7.5%

7.4%

10.0%

6.9%

6.5%

6.8%

7.0%

7.5%

7.2%

5.7%

6.2%

5.5%

2.8%

3.5%

5.9%

5.0%

5.3%

4.6%

2.7%

3.1%

0.4%

-0.2%

-4.9%

-6.1%

-5.3%

-8.9%

-5.8%

-5.9%

-6.9%

-13.4%

-9.3%

-14.4%

-14.1%

-15.6%

-9.5%

-18.5%

-12.2%

-20.1%

-15.0%

-15.1%

-16.1%

-15.8%

-19.2%

-20.5%

-27.5%

-28.5%

-27.8%

-28.1%

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Nominal ICVA

Nominal ICVA with Calendar Adjustment

Deflated* ICVA

*Adjusted by national Consumer Price Index (IPCA) according to the sectors contained in ICVA

Deflated* ICVA with Calendar Adjustment

For further information, please contact the Investor Relations area: ri@cielo.com.br

ir.cielo.com.br

Phone: +55 11 2596 8453

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Cielo SA published this content on 16 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 October 2020 12:09:04 UTC