Companhia Brasileira de Distribuição : Earnings Release 1Q 2021

1Q21

EARNINGS

RELEASE

May 5, 2021

1Q21

EARNINGS

RELEASE

São Paulo, May 5, 2021

GPA [B3: PCAR3; NYSE: CBD] announces its results for the first quarter of 2021(1Q21). All comparisons are with the same period in 2020, unless stated otherwise. The results include

the effects of IFRS 16/CPC 06 (R2), unless stated otherwise.

Brazil

Colombia

Uruguay

Argentina

GPA'S HIGHLIGHTS

1Q21 Earnings Conference Call

Thursday

May 6, 2021

10:00 a.m. (Brasília)

9:00 a.m. (NY)

Portuguese

videoconference: www.gpari.com.br

telephone: [phone] or [phone]

English (simultaneous interpretation)

videoconference: www.gpari.com.br

telephone: [phone] or [phone]

Replay: www.gpari.com.br

[phone]

Code for the Portuguese audio: 1932275#

Code for the English audio: 1779586#

Increase of 4.8% in total sales, driven by online sales and remodeled/converted physical stores, preparing for future expansion

Solid growth in e-commerce (+142%) in all the countries where we operate. Online penetration more than doubled in the period, moving from 3.7% to 8.2% on a consolidated basis

Substantial increase of 36% in Adjusted EBITDA, reaching R$935 million

Improvement of R$359 million in net income attributable to controlling shareholders, reaching R$113 million in the quarter

Reduction in the environmental impact: 75% of energy consumption in GPA Brazil is clean renewable energy, with a 37% increase in stores migrated to the free energy market in the quarter

Waste management: 24% waste reduction for landfills at GPA Brazil. In Grupo Éxito there were 130 tons of recycled waste, an increase of 96% vs 1Q20

Promotion of diversity and inclusion: 37% women and 36% blacks in leadership positions in Brazil. In the Grupo Éxito, 31% are women in leadership positions.

Disclaimer: Statements contained in this release relating to the business outlook of the Company, projections of operating/financial results, growth prospects for the Company and market and macroeconomic estimates are merely forecasts and are based on the beliefs, plans and expectations of Management in relation to the Company's future. These expectations are highly dependent on changes in the market, Brazil's general economic performance, the industry and international markets, and hence are subject to change.

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GPA maintains its pace of improved profitability

Financial Highlights	Consolidated(1)			GPA Brazil		Grupo Éxito(2)
R$ million, except when indicated	1Q21	1Q20		1Q21	1Q20		1Q21	1Q20
Gross Revenue	13,722	13,095	4.8%	7,135	7,342	-2.8%	6,571	5,742	14.4%
Net Revenue	12,452	11,876	4.9%	6,574	6,769	-2.9%	5,866	5,095	15.1%
Gross Profit	3,245	2,942	10.3%	1,696	1,699	-0.2%	1,539	1,242	23.9%
Gross Margin	26.1%	24.8%	130bps	25.8%	25.1%	70bps	26.2%	24.4%	180bps
Selling, General and Adm. Expenses	(2,355)	(2,242)	5.1%	(1,203)	(1,274)	-5.6%	(1,105)	(945)	16.9%
Other Operating (Revenue) Expenses	(60)	(214)	-71.9%	(44)	(102)	-57.4%	(16)	(111)	-85.3%
Adjusted EBITDA (3)(4)	935	688	36.0%	538	485	10.9%	484	289	67.4%
Adjusted EBITDA Margin (3)(4)	7.5%	5.8%	170bps	8.2%	7.2%	100bps	8.2%	5.7%	250bps
Net Income - Controlling Shareholders (5)	113	(246)	n.d.	81	(99)	n.d.	110	(63)	n.d.
Net margin - Controlling Shareholders (5)	0.9%	-2.1%	300bps	1.2%	-1.5%	270bps	1.9%	-1.2%	310bps

1. Consolidated figures include the results of GPA Brazil, Grupo Éxito (Colombia, Uruguay and Argentina), other businesses (Stix Fidelidade, Cheftime and James Delivery) and Cdiscount (in the equity income line).
2. Sales in R$, which include a positive exchange variation of 22%, due to the appreciation of the Colombian peso against the real (from 0.001257 to 0.001540).
3. Operating income before interest, taxes, depreciation and amortization.
4. Adjusted for Other Operating Revenue and Expenses.
5. Continuing Operations.

Operational & Financial Highlights

• Total consolidated sales of R$13.7 billion, up 4.8%, supported by:

1. Solid growth in online sales in all the countries where we operate: +137% in GPA Brazil and +145% in Grupo Éxito, with continued leadership in food e-commerce;

1. Growth in the proximity formats and remodeled supermarkets at GPA Brazil;

1. Evolution of the Éxito Wow and Carulla FreshMarket innovative formats at Grupo Éxito; and

• 1. 41 stores closed at GPA Brazil throughout 2020, with a negative impact in the quarter of 210 bps.
• The sales scenario continued to improve in the quarter, despite the challenges mainly related to the macroeconomic context and the pandemic, with strict restrictive measures involving the closure of stores on weekends, reduced working hours and prohibition of sale of some categories (alcoholic beverages, home appliances, kitchen utensils and textile, among others).
• Adjusted EBITDA grew by a substantial 36.0%, totaling R$935 million, driven by comercial efficiency and control of SG&A expenses at GPA Brazil and the contribution of the Viva Malls real estate development division at Grupo Éxito.
• Other Income and Expenses decreased sharply, from R$214 million in 1Q20 to R$60 million in 1Q21, reflecting lower non-operating expenses.
• These effects led to an R$359 million increase in net income attributable to controlling shareholders in continuing operations compared to 1Q20, reaching R$113 million.

Strategic priorities of GPA Brazil and Grupo Éxito for 2021

• Escalate the Digital Platform in all the countries where we operate: increase in 1P and 3P offer of products, expansion of delivery formats (new distribution centers and partnerships with last-mile carriers) and operation as a seller in third- party marketplaces;
• Organic Expansion of the Pão de Açúcar and Minuto Pão de Açúcar formats in Brazil;
• Rollout and Maturation of the new supermarket concepts: Compre Bem, Mercado Extra and Pão de Açúcar G7 in Brazil and FreshMarket in Colombia and Uruguay;
• Repositioning of the hypermarket model through the rollout of the new Extra Hiper in Brazil and conversion into Éxito Wow in Colombia; and
• Deleverage at GPA Consolidated.

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Message from the CEO

"The results recorded in the first quarter of 1Q20 reflect profitable growth, underlining the strength of GPA as one the largest food retail groups in South America. Our efforts to reduce SG&A expenses in the last three years, combined with portfolio changes and the evolution of digital initiatives in all the countries where we are present, led to a substantial increase in EBITDA and income, although the quarter was still marked by even more stringent restrictions due to the pandemic.

Our digital ecosystem continues its solid growth trajectory. Online penetration more than doubled, and online sales accounted for 6% of GPA Brazil's food sales and 11% of Grupo Éxito's total sales, which shows our enormous future potential. We continue to grow through our own platform and to develop our partnerships.

In the physical stores, we continued to move forward with our plans, repositioning hypermarkets with a low price policy and resuming the expansion plans for Pão de Açúcar and proximity supermarkets. We will open more than 150 new Pão and Minuto stores all over the country over the next three years. At Grupo Éxito, I highlight the continuation of conversions into the innovative formats Éxito Wow and Carulla FreshMarket.

We remain confident and focused on expanding the omnichannel initiatives - the group's strategic priority -, moving forward with conversions and resuming the organic expansion of physical stores, in order to provide the best shopping experience for the customers who go to our stores, use our apps and make purchases on our website. This is what will guarantee our competitiveness and profitability in the coming periods."

Jorge Faiçal

GPA's CEO

OPERATING PERFORMANCE

SALES PERFORMANCE

	GROSS REVENUE									1Q21/1Q20
							% Stores			% Stores			Same						Same stores
	(R$ million)			Selling					total					Covid Impact
												(2)	ex Covid
					total			Constant			stores (2)
																	Impact
										Currency
	GPA Consolidated			13,722			4.8%			-2.7%			-0.7%				-5.5%			4.8%
	GPA			7,151			-2.8%			-2.8%			1.1%				-3.9%			5.0%
GPA Brazil	7,135		-2.8%		-2.8%		1.1%		-3.9%			5.0%
Others (1)	16		32.8%		32.8%			n.d.			n.d.		n.d.
	Grupo Éxito			6.571			14.4%			-2.6%			-2.7%				-7.2%			4.5%
Colombia	5,019		18.0%		-3.6%		-3.9%	-6.0%			2.1%
Uruguay	1,148		8.9%		-3.6%		-4.3%	-9.6%			5.2%
Argentina	405		-7.4%		17.5%		20.7%	-14.8%			35.6%

1. Other businesses includes Stix Fidelidade, Cheftime and James Delivery.
2. Gross same-store sales performance:
3. • Does not consider revenue from gas stations and drugstores
   • 'Same store' presented in growth with constant exchange rate for international operation;
   • Excluding calendar effect. In order to reflect the calendar effect, we added 70 bps in GPA Brazil and 30 bps in Grupo Éxito (10 bps in Colombia, 80 bps in Uruguay and 110 bps in Argentina)

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GPA Brazil

Digital Strategy

Leadership in the e-commerce, with ample avenues for growth to explore

Our digital platform is being developed at full speed. We continued to record three-digit growth, with successive progressions in our 1P and 3P supply of products. We are increasingly closer to consumers, expanding our delivery radius, improving our service level to ratios above 95% and reducing wait time with the fast-paced evolution of our partnership with last-mile carriers. Our loyalty program and the Stix coalition are also at the core of our strategy, as they increase the value created for customers by our platform. Other major deliveries are in the pipeline: our fulfillment service for marketplace sellers is already being tested; our digital wallet is under development; we are advancing in the construction of our customer knowledge platform in order to increase their lifetime value; and we are making progress in the monetization of insights with third parties.

We are working towards making our customers increasingly
multichannel and digital: the number of customers who made purchases	Growth of +60% in e-commerce
on our digital platforms grew 60% over 1Q20, with a 40% increase in	customers
omnichannel customers. The omnichannel has also been consolidating
its position as a driver of share of wallet growth, as omnichannel	On average, omni customers spend
customers spend 2.9x more than physical store customers.	2.9x more than those who buy at
				physical stores
	Growth of
food e-commerce		In 1Q21, GPA consolidated its position as the largest food e-commerce player
	(1P+3P)
	R$311	(1P - Ebit Nielsen basis), closing the quarter with a 71% share of self-service.
	R$ Million
			Food e-commerce (1P + 3P) grew 137% year on year, accounting for 5.7% of the
+137%		Group's total food sales and 15% of food sales at Pão de Açúcar. The GMV of
			online operations totaled R$ 1.3 billion in the last twelve months.
	R$131		In addition to rapid sales growth, profitability - which was already positive -
		increased by an additional 190 bps in the period, thanks to the better
2.4%	5.7%	commercial assertiveness and	greater dilution of operating costs,	with
continuous improvement in our service level indicators.
	of food	of food
	sales	sales
	1Q20	1Q21	We have continuously improved our logistics network and expanded	our
			delivery models. The next-hour and same-day delivery categories together

accounted for 68% of total online sales.

Delivery Models

Express and Click & Collect (same day): At the end of the quarter, 290 stores had Express and Click & Collect services, an addition of 164 stores over 1Q20. Our ship-from-store model currently represents approximately 50% of total online sales.

Traditional Delivery (next day): The Company continues to benefit from the expansion of distribution centers held in 2020, and traditional delivery currently accounts for 32% of total online sales.

Last Mile (next hour): This quick delivery model accounted for 18% of total online sales in 1Q21, 900 bps higher than in 1Q20. This surprising improvement was driven by ongoing growth in James Delivery operations and new partnerships initiated at the end of the quarter.

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