Compañía de Distribución Integral Logista S A : Q3 2021 results announcement

Q3 Results 2021

October 2020 - June 2021

The results up to and including the third quarter of this fiscal year can be described as very positive, increases being recorded in the main figures in the Profit & Loss Account, even though, in the previous fiscal year, no impacts resulting from COVID-19 were recorded until the month of March:

• Increase in Economic Sales1 of 7.2%
• A good performance of the activity, which brought about increases of 29.5% in the Operating Profit and of 22.6% in the Adjusted Operating Profit1
• An increase of 32.6% in the Net Profit.

Summary of the Main Financial Figures

M€	1 Oct. 2020 - 30 Jun. 2021	1 Oct. 2019 - 30 Jun. 2020	% Change
Revenues	7,997.2	7,661.2	+4.4%
Economic Sales1	909.0	847.5	+7.2%
Adjusted Operating Profit1	214.9	175.3	+22.6%
Margin over Economic Sales1	23.6%	20.7%	+290 b.p.
Operating Profit	173.7	134.1	+29.5%
Net Profit	136.6	103.0	+32.6%

Estimated impact of COVID-19 on business performance and results

There were new waves of the pandemic in the first nine months of the current fiscal year reaching a peak in the first quarter.

The situation in the first six months of the current fiscal year bore no resemblance to that of the previous fiscal year, in which activity in the countries where we operate was not affected by the pandemic either during the first quarter or during almost all of the second quarter. So the third quarter of the two fiscal years is the first one for which activity in a COVID-19 environment can be compared, and the conclusion is that the general financial situation in the current fiscal year is more positive than it was in the same period of 2020.

Over the first nine months of the current fiscal year the governments of Spain, Portugal, France and Italy again took measures including restricting opening hours and people's movements, closing shops and imposing selective confinements, but, in general, those measures were less severe than those of the previous fiscal year. In any case, as happened then, in most of Logista's businesses - which were once again regarded as constituting essential activity - that activity was maintained with almost complete normality.

The adverse effects on results which did occur as a consequence of COVID-19 were offset by cost reduction and the taking of certain strategic decisions which, together, enabled the situation created by the pandemic in certain sectors to convert certain positive trends into increased activity.

Among the positive impacts of the pandemic, which had already been noticed during the previous fiscal year, the following were noteworthy: the increased activity in distribution in the field of e-commerce (the "last mile") and in the distribution of pharmaceutical products, the development of services to

1 See the appendix "Alternative Performance Measures"

Contacto Relación con Inversores: [e-mail], + 34 91 481 9826

1

manufacturers, and progress in the volumes of tobacco distributed in France, resulting from the restrictions on movements, especially those across frontiers.

The progress of the business and the main figures of the P&L account in the first nine months of the fiscal year

The Group's Revenues increased by 4.4% compared with the same period of the previous year, increases being recorded in Iberia and Italy. There were increases in turnover in most of the principal businesses, and growth in tobacco distribution in Italy and Spain, in distribution of convenience products in all the countries, in Pharma and in all the transport businesses in Spain, including that of long-distance transport.

Economic Sales1 showed an increase of 7.2%, reaching 909.0 million euros thanks to the improvements recorded in all the geographical areas and activities except tobacco distribution in Portugal. Of note was the double-digit increase in the Economic Sales1 of Pharma, Parcels and the distribution of convenience products in all the countries.

Total operating costs1 increased by 3.2%, far less than the increase recorded in Economic Sales1.

The Adjusted Operating Profit1 reached 214.9 million euros, an increase of 22.6% compared with the first nine months of the previous fiscal year. The Adjusted Operating Profit margin over Economic Sales1 was 23.6%, against the 20.7% obtained in the same period of the 2020 fiscal year.

The positive impact on results caused by the changes in the valuation of inventories due to the movements in taxes and tobacco prices during the period (about +3 million euros) partly contributed to this progress in the Adjusted Operating Profit1 compared with the first nine months of the 2020 fiscal year, when there was an adverse impact of about 2 million euros.

It is also estimated that during the same period of the previous fiscal year, negative results extending to about 17 million euros were caused by COVID-19, whereas in the current fiscal year its effect is not considered to have been significant.

The costs of restructuring1 were higher than those of the previous fiscal year, and reached 5.4 million euros (costs of 3.1 million euros were recorded up to the third quarter of the 2020 fiscal year).

In the current fiscal year, capital gains generated from sales of assets in Spain have been more than those generated in the same period of the 2020 fiscal year (1.2 million euros and 0.3 million euros respectively), as a result of the sale of an asset in Spain.

The Operating Profit increased by 29.5% to 173.7 million euros.

The Financial Results were very much better than those of the previous fiscal year, and reached 14.3 million euros (compared with 8 million euros). This improvement was mainly due to the interest generated on the excessive advance payments of corporation tax in Spain in fiscal years 2017 and 2018, in accordance with a ruling of the Constitutional Court.

The effective tax rate was 27.3%, which was the same as that recorded in the previous fiscal year.

As a result of all of the foregoing, the Net Profit increased by 32.6% to 136.6 million euros.

1 See the appendix "Alternative Performance Measures"

Investor Relations Contact: [e-mail], + 34 91 481 9826

2

Changes in Revenues (by segment and activity)

	M€	1 Oct. 2020 - 30 Jun. 2021	1 Oct. 2019 - 30 Jun. 2020	% change
	Iberia	2,392.8	2,315.9	3.3%
	Tobacco and Related Products	2,051.5	2,014.1	1.9%
	Transport	309.4	288.8	7.1%
	Other Businesses	150.7	121.0	24.5%
	Adjustments	(118.8)	(108.1)	(9.9)%
	France	3,060.0	3,100.7	(1.3)%
	Tobacco and Related Products	2,952.2	2,999.2	(1.6)%
	Other Businesses	114.2	108.5	5.3%
	Adjustments	(6.4)	(7.0)	8.7%
	Italy	2,571.9	2,273.9	13.1%
	Tobacco and Related Products	2,571.9	2,273.9	13.1%
	Corporate and Others	(27.5)	(29.3)	11.4%
	Total Revenues	7,997.2	7,661.2	4.4%

Changes in Economic Sales1 (by segment and activity)

M€	1 Oct. 2020 - 30 Jun. 2021	1 Oct. 2019 - 30 Jun. 2020	% change
Iberia	466.9	432.9	7.8%
Tobacco and Related Products	215.2	209.2	2.8%
Transport	221.2	203.5	8.7%
Other Businesses	75.6	63.1	19.8%
Adjustments	(45.1)	(43.0)	(4.9)%
France	199.4	189.6	5.2%
Tobacco and Related Products	172.0	166.4	3.4%
Other Businesses	32.0	28.4	12.7%
Adjustments	(4.6)	(5.2)	10.3%
Italy	239.1	222.5	7.4%
Tobacco and Related Products	239.1	222.5	7.4%
Adjustments	3.6	2.5	45.1%
Total Economic Sales1	909.0	847.5	7.2%

1 See the appendix "Alternative Performance Measures"

Investor Relations Contact: [e-mail], + 34 91 481 9826

3

Changes in Adjusted EBIT1 (by segment)

M€	1 Oct. 2020 - 30 Jun. 2021	1 Oct. 2019 - 30 Jun. 2020	% change
Iberia	101.8	83.7	21.7%
France	48.3	37.6	28.5%
Italy	75.6	65.1	16.2%
Corporate and Others	(10.9)	(11.1)	1.4%
Total Adjusted EBIT1	214.9	175.3	22.6%

Adjusted Operating Profit1 (or, without distinction, Adjusted EBIT1) is the principal indicator used by the Group's Management to analyse and measure the progress of the business. Basically, this indicator is calculated by deducting from the Operating Profit all those expenses that are not directly linked to the revenue obtained by the

Group in each period, which facilitates the analysis of the changes in the Group's operating expenses1 and typical

margins. The following table shows the reconciliation between Adjusted Operating Profit1 and Operating Profit for the periods up to and including the third quarters of fiscal years 2021 and 2020:

M€	1 Oct. 2020 - 30 Jun. 2021	1 Oct. 2019 - 30 Jun. 2020
Adjusted Operating Profit1	214.9	175.3
(-) Restructuring Costs1	(5.4)	(3.1)
(-) Amortisation of Assets Logista France	(39.2)	(39.2)
(+/-)Result of Disposal and Impairment	1.2	0.3
(+/-)Result by Equity Method and Others	2.1	0.8
Operating Profit	173.7	134.1

1 See the appendix "Alternative Performance Measures"

Investor Relations Contact: [e-mail], + 34 91 481 9826

4

Changes by segment

A. Iberia: Spain and Portugal

Iberia's revenues amounted to 2,392.8 million euros compared with the 2,315.9 million euros of fiscal year 2020, an increase of 3.3%. Economic Sales1 reached 466.9 million euros, 7.8% more than the 432.9 million euros recorded for the first nine months of the previous fiscal year.

Revenues in Tobacco and Related Products increased by 1.9% despite the reduction in distributed volumes of tobacco.

In the first nine months of the current fiscal year the volumes of cigarettes and RYO and others (including the units of heated tobacco) distributed in Iberia decreased by 1.3% compared with the same period of the 2020 fiscal year. They were smaller in both Spain and Portugal.

The volumes of those product categories that were distributed in Spain decreased by 1.1% compared with the same period of the previous fiscal year, mainly as a consequence of lower sales in tourism and lower cross-border sales due to the restrictions on movements which had been in force since the beginning of the pandemic, and which continue to affect the flow of tourists arriving from other countries.

In general, the tobacco manufacturers kept the retail prices of their products stable both in the current period of the fiscal year and in the previous one, so there were no material impacts resulting from variations in the value of stocks.

Economic Sales1 of Tobacco and Related Products increased by 2.8% compared with the same period of the previous fiscal year.

The invoicing of added-value services to tobacco manufacturers, combined with the implementation of revised prices for including the tracking service which is provided, compensated for the impact of the slight reduction in the volumes of distributed tobacco on the Economic Sales1.

Compared with the same period in the 2020 fiscal year, there was a double-digit increase in the Economic Sales1 from the distribution of convenience products. This positive performance was due to the incorporation of new customers, to a greater number of points-of-sale and to a more dynamic demand for the products of convenience shops.

The situation caused by the pandemic favoured an increase in electronic commerce which in turn resulted in greatly increased activity in the Parcels business (Nacex), whereas the restrictions on movements and the selective confinements were adversely affecting demand in Industrial Parcels. However, it is worth noting that in the first nine months of the current fiscal year, this latter activity has already recorded increases compared with the same period in the previous fiscal year, thanks to the considerable growth achieved during the third quarter.

The recovery of tobacco volumes in long-distance transport, combined with the expansion of transport services and their gradual incorporation into other sectors such as the pharmaceutical industry, 'high tech', high-volume consumer goods and fruit, contributed to a gradual increase in this activity.

Economic Sales1 in Transport increased by 8.7% to 221.2 million euros. The increases in Economic Sales1 were of double digits in Parcels (Nacex), mid-single digits in Long-Distance Transport, and low- single digits in Industrial Parcels.

1 See the appendix "Alternative Performance Measures"

Investor Relations Contact: [e-mail], + 34 91 481 9826

5