Jerónimo Martins SGPS S A : Jerónimo Martins, SGPS, S.A, informs on 2021 Annual Report to be presented to the Annual General Meeting of April 21, 2022 non-ESEF compliant version

Non-ESEF compliant version

European Single Electronic reporting Format (ESEF) and PDF version

This document is the PDF/printed version of the Annual Report 2021 of Jerónimo Martins, SGPS, S.A.. This version has been prepared for ease of use and is not presented in the format foreseen as specified in the Regulatory Technical Standards on ESEF (Delegated Regulation (EU) 2019/815). The official ESEF reporting package is available on our website atwww.jeronimomartins.com. In case of discrepancies between this version and the official ESEF package, the latter prevails.

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Message from the Chairman 4

2021 Highlights 8

The Jerónimo Martins Group 11

1. Profile and Structure 12

2. Strategic Positioning 18

Management Report - Creating Value and Growth 21

1. Environment in 2021 22

2. Group Performance 30

3. Performance of the Business Areas 42

4. Outlook for the Jerónimo Martins Businesses 58

5. Events after the Balance Sheet Date 60

6. Dividend Distribution Policy 61

7. Results Appropriation Proposal 62

8. Reconciliation Notes 63

Financial Statements 67

Consolidated Financial Statements 68

1. Consolidated Financial Statements 68

2. Statement of Board of Directors 119

3. Auditor's Report 120

4. Report and Opinion of the Audit Committee 127

Individual Financial Statements 130

1. Individual Financial Statements 130

2. Auditor's Report 155

Corporate Governance 160

Part I - Information on Shareholder Structure, Organization and Corporate Governance 161

Section A - Shareholder Structure 161

Section B - Corporate Bodies and Committees 165

Section C - Internal Organisation 193

Section D - Remuneration 203

Section E - Related Party Transactions 215

Part II - Corporate Governance Assessment 218

Corporate Responsibility in Value Creation 228

1. Approach to Corporate Responsibility 229

2. Promoting Good Health through Food 232

3. Respecting the Environment 246

4. Sourcing Responsibly 267

5. Supporting Surrounding Communities 281

6. Being a Benchmark Employer 290

7. 2021-2023 Commitments 307

8. EU Taxonomy 315

9. Table of Indicators 320

Independent Limited Assurance Report 337

Index 3

Message from the

Chairman

As I write this message that accompanies and introduces our 2021 Annual Report, we have entered the second week of the invasion of Ukraine by the Russian armed forces. This military aggression has brought back the nightmare of war in Europe, as the world sees an escalation of ceaseless violence that includes civilian targets.

The severe economic sanctions imposed on Russia by the Western world and much of the rest of the world (including Australia and Japan, for example) are multiplying, isolating the country. The suspension of trade relations, the withdrawal of investment, the removal of Russian and Belarusian products from shelves (as our companies Biedronka and Hebe in Poland have done), the ban on all Russian aircraft and private planes from operating in and over the European and US space, and the removal of Russian banks from the SWIFT payment network are just some of the reactions expressing outrage at Russia's actions. Also of note are the growing number of complaints filed with the International Criminal Court by 39 nations calling for an investigation into alleged war crimes, crimes against humanity and genocide perpetrated by Russian forces in Ukraine, particularly in the cities of Kyiv, Kharkiv and Kherson.

With only a few days since the start of the aggression, it is too early to determine the full extent of the humanitarian and economic consequences in the short, medium, and long term. But it is already clear that the impacts will go far beyond the regional scale. At the moment, the immediate priority is to give as much support as possible to refugees, which the United Nations High Commissioner for Refugees estimates to be more than 2 million people.

From the outset, Poland, which borders Ukraine and Russia, as well as Belarus, has been leading the efforts to welcome and support those fleeing the war. To date, and despite the ever-increasing numbers, it is estimated that more than 1.2 million refugees have entered Poland, and hundreds of hospitals have been placed on alert across the country, ready to receive the injured.

Poland and Ukraine have very close ties. Before this crisis, the Ukrainian community in Poland already exceeded one million people, easily integrated into the labour market and the country. Biedronka, for

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example, employs around 1,800 Ukrainian employees and to whom it immediately made a non-repayable contribution of 1,000 złoty to support their families.

This mutual relationship and understanding also underpin Poland's enormous solidarity that the world is witnessing. Poles are sparing no effort to help Ukrainians, which naturally includes all our teams, who are fully engaged in these efforts.

In a few days, Biedronka and the Biedronka Foundation have already channelled the equivalent of 10 million złoty (over 2 million euros) to provide food and non-food support for Ukrainian refugees, implemented in collaboration with non-governmental organisations particularly active on the ground. The Biedronka Foundation also received 2.5 million euros from Sociedade Francisco Manuel dos Santos, the largest shareholder of Jerónimo Martins, to support the accommodation of refugees. And at the Group level, we announced the donation of 5 million euros, split equally among five Polish humanitarian aid institutions: the Red Cross, Caritas, Humanitarian Action, the Medical Mission, and the SOS Children's Villages in Poland.

In short, we were able to quickly raise the equivalent of about 9.5 million euros to help people who are fleeing the war.

Also, in Portugal, our main companies - Pingo Doce and Recheio - immediately offered to participate in the collective effort to receive and integrate Ukrainian refugees coming to Portugal.

The situation in Eastern Europe adds complexity and uncertainty to a context already marred by unpredictability clouding economic recovery, despite the pandemic threat being largely ignored and receiving less media coverage in recent days.

Moreover, the accelerated inflation seen since 2021, particularly in the energy sector, is likely to be exacerbated by the military conflict, which will compound constraints in logistics routes.

Our companies feel prepared to face 2022, thanks to our robust performance in 2021. Our resilience and ability to fight resulted in remarkable sales growth in all the countries where we do business, with our companies, including Ara, delivering positive operating results regarding EBITDA.

For the first time, the Group exceeded - by far - the 20-billion-euro milestone. In 2015 we internally set the ambitious target of closing 2020 with 20 billion euros in sales. The pandemic (still underway), and sharp currency depreciation, delayed the achievement of this goal by one year. We closed 2021 just below 21 billion euros in global turnover.

Biedronka's sales increased 11% in złoty. Pingo Doce had its best year ever, exceeding 4 billion euros in sales. Ara grew 36.1% in Colombian pesos and broke the billion-euro sales barrier, while Recheio sold 7% more, and Hebe grew 16.7% in złoty.

Biedronka has always kept the bar very high, constantly innovating its assortment and having an unbeatable price-quality ratio in the Polish market. The Company has invested heavily in refurbishing its chain of stores. Between refurbishments and new openings, it has added about 500 stores with a new and more modern layout to its chain, thus improving the shopping experience. Throughout the year, Biedronka maintained exemplary flexibility, adapting its operating hours to the needs of its customers. As part of its innovation agenda, the Company invested significantly in the online channel, offering home deliveries in around 30 cities and creating Biek - in partnership with Glovo -, an ultra-fast delivery service (less than 15 minutes) available in the six major cities.

Hebe began to market products beyond Polish borders and already delivers in four more countries besides Poland. With its e-commerce platform increasingly consolidated, the weight of online sales has doubled and already accounts for 13% of total turnover.

Pingo Doce saw its decisive investment in pricing and promotions in the year rewarded by Portuguese families: managing to recover sales and recording its best year ever. It is worth highlighting the ability to manage under pressure of all Pingo Doce teams, who operated at negative basket inflation, given that strong investment in competitive prices was accompanied by very low food inflation in Portugal (0.7%).

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