General Shopping e Outlets do Brasil S A : Dados Econômico-Financeiros

In compliance with legal, bylaws and securities market requirements, General Shopping e Outlets do Brasil S/A submits to you its annual report and financial statements for the year ended December 31, 2022.

MANAGEMENT COMMENTS

The Company's Management is pleased to present the operating and financial performance for the fourth quarter 2022 (4Q22) and the fiscal year 2022 shown in detail in the respective reports and statements.

We would initially point out the reduction in own Gross Leasable Area in 4Q22 compared with 4Q21, due to the disposal of the stake in Outlet Premium Grande São Paulo.

Gross Revenue in 4Q22 reported a slight decrease of 0.8% to R$ 48.7 million and weighted by the reduction in Rental Revenue of 2.0% and stability of Services Revenue when compared to 4Q21. In 2022, Gross Revenue reached R$ 182.5 million, an increase of 18.9% compared to 2021.

In the case of Same Areas performance, the Same Area Rentals item posted an increase of 6.9% in 4Q22 compared with the same period in 2021 and a growth in Same Area Sales of 8.7% on the same comparative basis.

Occupancy rates were higher in the quarter reporting a growth in the quarter to reach 94.4% against 93.3% when compared with 4Q21.

Rental and Services costs rose 27.4% year-on-year to R$ 13.9 million, impacted by the growth of occupancy and personnel costs. For the full year 2022, these same costs were higher in relation to 2021, reaching R$ 46.1 million and corresponding to an increase of 31.6% in the year.

NOI amounted to R$ 109.4 million in 2022, an increase of 12.8% relative to 2021 with a margin of 71.0%. In 4Q22, NOI recorded R$ 27.4 million equivalent to a gross margin of 66.6%, a decrease of 9.0% relative to 4Q21.

An analysis of General and Administrative Expenses reveals a small increase of 3.5% in 2022 compared with the preceding year and a reduction of 0.6% in 4Q22 relative to 4Q21.

The Company reported an Adjusted EBITDA in 2022 of R$ 64.1 million, an increase of 13.8% in relation to 2021, corresponding to an adjusted EBITDA margin of 41.6%. In 4Q22, the adjusted EBITDA reached R$ 13.9 million, a reduction of 35.9% in relation to 4Q21 and equivalent to an Adjusted EBITDA margin of 33.8%.

In 2022, the Net Financial Result was largely impacted by exchange variation, Dollar x Real, declining from a negative R$ 287.3 million in 2021 to a negative R$ 120.2 million in 2022.

Management continues actively monitoring the impacts of Covid-19 on its financial conditions, liquidity, operations, suppliers, business sector and workforce.

We would like to thank our employees, tenants, clients, and visitors for their invaluable contributions.

Marcio Snioka,

Investor Relations Officer

COMPANY OVERVIEW

General Shopping e Outlets do Brasil is one of the main Brazilian companies focused on the development and management of shopping centers in their different models. We manage 15 shopping centers with a total gross leasable area of 295.451 m², in addition to operating complementary services. We have stake in 14 shopping centers with 85.851 m² of gross leasable area and an average stake of 31.3% as of December 31, 2022.

We believe our success is based on market understanding and on the success of the retail operations in our shopping centers.

Our goal is to maximize the profitability of the Company through the rental and complementary services revenues arising from better tenants´ performance, developing greenfields projetcs and negotiating stakes in shopping centers. Considering the marketing conditions from each location, our strategy is:

• Real estate investment in ownership stakes in shopping centers, either by developing greenfields projects, acquiring from third parties or increasing share in our current portfolio or divestments stakes;
• Managing these shopping centers in an optimal way through our competences;
• Providing complementary services to the shopping center operations;
• Developing new types of shopping centers in the Brazilian market, as well as mixed-use projects that create positive synergy with shopping center performance.

DESCRIPTION OF BUSINESS AND INVESTMENTS

Different from our competitors, we work in the shopping center market in a manner that is oriented toward the retail market.

Our activities are (i) planning, managing and operating shopping centers; (ii) leasing commercial space (stores); (iii) leasing advertising and promotional space (merchandising); (iv) managing shopping center parking lots; (v) planning and leasing of electrical and water supply equipment at the developments.

SCENARIOS AND PERSPECTIVES

Brazilian retail trade ended 2022 with growth of just 1.0% in terms of sales volume, registering the worst performance since 2016, when there was a 6.2% drop. In 2021, the result for this indicator was 1.4%, wich means a slight deceleration in the comparison between years.

The modest performance of retail in 2022 was highly influenced by three activities, which showed the most significant drops in terms of sales volume compared to 2021: furniture and appliances, other articles of personal and domestic use and construction materials, which registered a decrease of 6.7%, 8.4% and 8.7% respectively.

Regarding the prospects for the labor market, the unemployment rate calculated for the end of 2022 was 9.3%, 3.9 p.p. lower than that observed at the end of 2021, which shows a relevant improvement in this indicator. However, the positive evolution in the number of employed people is offset by a slight deterioration in their usual average remuneration, which fell by 1.0% in 2022 compared to 2021, reaching R$ 2,715.00.

The credit market, in turn, recorded in 2022 growth in loans to families by 17.7% (against 21.0% in 2021) and in the corporate segment by 9.0% (against 10.6% in 2021), totaling a total volume of R$ 5.3 trillion and growth of 14.0% in the year. The Credit Cost Indicator (ICC), a measure of the average cost of all SFN (National Financial System) credit, reached 21.5% p.a., representing an increase of 3.1 p.p. compared to 2020 and a significant worsening in financing conditions. The impact of the deterioration in borrowing conditions by individuals and companies was reflected in the increase in general credit defaults, which rose from 2.3% at the end of 2021 to 3.0% in December 2022.

Consumer expectation surveys indicate an improvement in their expectations at the end of 2022, when compared to the scenario observed in the same period of 2021. The Consumer Confidence Index, an indicator prepared by the FGV, reached 88.0 in December 2022, representing 12.5 points above that registered in December 2021. The progress of the indicator was strongly influenced by the improvement in the confidence of low-income families, which were impacted by the expansion of social programs from the federal government implemented throughout the year.

Inflation in the country was reduced from the double-digit level observed in 2021 to close the year 2022 at 5.79%, considering the IPCA accumulated in 12 months as an indicator. After successive increases in the Selic rate implemented by the Central Bank over the last two years, making it jump from 2.0% in January 2021 to 13.75% in August 2022, inflation showed a continuous decline throughout the second half of the year. Analyzing the index from a sectorial perspective, it should be mentioned that the food and beverage category impacted the index by 2.41 percentage points, registering a price increase of 11.64% in relation to the previous year. It is the sector that had the most impact on rising prices, corresponding to a share of more than 40% of the IPCA calculated in 2022.

In view of this situation, expectations remain about the continuation of the economic recovery observed in 2022 and about the way in which the new government will conduct the management of domestic economy.

OPERATIONAL AND FINANCIAL PERFORMANCE

CAPITAL MARKET AND CORPORATE GOVERNANCE

Our entry into the capital market in July 2007 allowed us to access better capital sources. This in turn allowed us to conduct an efficient growth strategy.

HUMAN RESOURCES

We have 184 employees in our offices and shopping centers. Additionally, our shopping centers use outsourced labor for operations such as maintenance, cleaning and security. We monitor the outsourced companies' compliance with employment and social security law.

ENVIRONMENTAL SUSTAINABILITY

Although shopping center activities generally have low environmental impact, wherever possible we seek to use new concepts in our projects, such as:

• Using electricity from sources certified by the Alternative Source Electrical Power Incentive Program (Programa de Incentivo às Fontes Alternativas de Energia Elétrica), or PROINFA.
• Water recycling.

• Recycling waste and oil.
• Optimizing the use of paper and recycling.
• Landscaping with reforestation.
• Architectural design that takes advantage of natural light.

INDEPENDENT AUDITING

In compliance with Brazilian Securities Commission (CVM) Instruction 381/03, we report that Cotrim & Associados Auditores Independentes SS provided us no services other than auditing our financial statements in the year ended December 31, 2022.

ARBITRATION

The Company is linked to arbitration at the Market Arbitration Chamber under the arbitration agreement in article 42 of its bylaws