Earnings Document

Earnings Release

3Q21

|3Q21 Highlights

• Total sales rose 12% in 3Q21, reaching R$13.8 billion (103% growth in two years)
• E-commercegrew 22% in 3Q21, reaching R$10.0 billion (204% growth in two years )
• Marketplace grew 67% in 3Q21, reaching R$3.5 billion (310% growth in two years)
• Total Payment Volume (TPV) grew 99% in 3Q21, reaching R$18.5 billion
• Adjusted EBITDA reached R$351.0 million (4.1% margin)
• Net profit was R$143.5 million (R$22.6 million adjusted)
• Adjusted net cash position was R$6.8 billion and total adjusted cash position was R$9.1 billion

Sales growth on top of the highest comparison basis in Magalu's history. In 3Q21, total sales - including

physical stores, e-commercefirst-party inventory (1P) and marketplace (3P) - increased 12.0% to R$13.8 billion, reflecting growth of 22.2% in e-commerce (on growth of 148% in 3Q20) and an 8.0% decrease in physical stores. Physical stores performance was impacted by the deterioration of the macroeconomic scenario throughout the quarter, as inflation and interest rates increased Physical store performance was also impacted by the strong comparison base (18.3% growth in 3Q20).

E-commerce continues to grow at a fast pace with marketplace growth a highlight. In 3Q21, Brazilian e-

commerce grew 17.9%, according to Neotrust, with Magalu growing more than the market. During the period, Magalu's e- commerce sales increased by 22.2%, reaching R$10 billion during the quarter for the first time. In 1P e-commerce, sales increased by 6.7%, while 3P marketplace sales increased by 67.3%, reaching 35.0% of Magalu's total e-commerce. The gain in market share was driven by the excellent performance of the SuperApp, which reached 37.9 million monthly active users (MAU). Other contributing factors include faster delivery speeds, the growth of new categories and the continued evolution of the marketplace.

Gross margin reflects greater e-commerce participation. Adjusted gross margin was 24.7% during the quarter, a

reduction of 1.5 p.p. from the same period in 2020 (26.2% in 3Q20). This was a result of greater e-commerce participation in total sales (72.3% of the Company's total sales in 3Q21) and partially due to the growth of inflation and its impact on the cost of goods sold.

Expenses impacted by physical store contraction and marketplace growth. The percentage of adjusted

operating expenses in relation to net revenues was 20.6% in 3Q21. The 1.1 p.p. increase over 3Q20 was attributable to a slight dilution of physical stores expenses and an increase in e-commerce marketing expenses. It is worth highlighting that in relation to total sales (including marketplace), expenses were practically stable at 13.2% (a reduction of 0.4 p.p. compared to 3Q20).

EBITDA and net profit. Sales growth and positive e-commerce results contributed to adjusted EBITDA which reached R$351.0 million in 3Q21. However, the decrease in gross margin and the increase in expenses over net revenues impacted the Adjusted EBITDA margin, which decreased from 6.8% in 3Q20 to 4.1% in 3Q21. Adjusted net income reached R$22.6 million during the same period. Considering non-recurring net gains, net income was R$143.5 million.

Cash generation and capital structure. Cash flow from operations reached R$221.8 million during the quarter, driven by the positive results and the variation in working capital. Over the last 12 months, cash flow from operations, adjusted for credit card receivables, was R$219.5 million. In September 21, the adjusted net cash position was R$6.8 billion and the total adjusted cash position was R$9.1 billion, including the R$3.9 billion raised in the July 2021 follow-on offering.

Fintech. Total payment volume (TPV) exceeded R$18.5 billion in 3Q21, growing 98.5%. In September 2021, the cardholder base reached 6.6 million credit cards, growing 33.3% compared to September 20. Credit card billing grew an expressive 47.3% in 3Q21, reaching R$10.9 billion during the period, and the credit card portfolio reached R$15.1 billion at the end of 3Q21. In September 21, MagaluPay reached 4.0 million open accounts, driven by the "Cashback do milhão" (R$1 million Cashback") campaign.

MGLU3: R$ 13.65 per share	Videoconference	Investor Relations
November 12,2021 (Friday)	[phone]
Total Shares: 6,673,926,848
12:00 PM in US (EST)/ 14:00 PM in Brazil	www.magazineluiza.com.br/ri
Market Cap: R$ 91.1 billion
Conference Call Access	[e-mail]

Earnings Release

3Q21

| MESSAGE FROM THE EXECUTIVE DIRECTORS

During the third quarter of 2021, a perfect storm descended upon the Brazilian economy. Inflation soared, causing interest rates to reach the highest levels in four years, and the upheaval wrought by these radical changes has not yet abated. The economic scenario remains turbulent and will likely continue so for the near future.

Despite the macroeconomic challenges, our total sales continued to grow--even with a very high comparison basis. The rise in inflation and interest rates and fall in disposable income did, however, affect our profitability this quarter, yielding a level below the one that we have grown accustomed to producing.

The principal area affected was our physical store business. Despite the growing diversification of categories, physical store sales are still mainly concentrated in durable goods -- high to medium ticket products -- dependent on credit and interest rates that have been rapidly increasing. This is a known phenomenon: when the economy suffers from low growth and high interest rates, sales contract and that is what happened during the quarter.

Third quarter 2021 store revenues were 9% higher than those registered during the same period in 2019. But they fell 8%, when compared to the third quarter of 2020 - a result caused by the combination of the worsening macroeconomic scenario and the very strong comparison basis--between July and September of 2020, sales in physical stores advanced 18%. Lower sales volume at our physical stores was the main reason for the reduction in profitability, because physical stores are still Magalu's most mature and profitable sales channel.

In contrast to the physical store business, however, Magalu's other operations remained more resilient. They continue to grow at an accelerated pace, in line with the enormous opportunities presented by the digitalization of Brazilian retail.

Magalu is transforming Brazilian retail from analog to digital.

There are almost 6 million retailers in Brazil. Of this 6 million, only a small fraction have taken the first baby steps towards entering the digital economy. It is this six million which is our target. We currently have more than 120,000 sellers in our marketplace -- all of them formal and with products already published on the SuperApp. This means that each of these retailers can sell their items immediately, throughout Brazil. More than half of our seller base has been digitized thanks to the Partner Magalu program. In the third quarter, sales of these small retailers grew by around 500%.

Created in 2020, as a response to the closure of brick and mortar stores during the pandemic, the program accelerated when Magalu's physical store teams mobilized to begin attracting local businesses, transforming Magalu stores into local centers for prospecting new sellers for the marketplace. Managers and salespeople have become local evangelists for the marketplace, contacting retailers in their regions and onboarding them to Magalu's platform and the strategy has produced exceptional results. Around 50% of all new sellers are currently being originated by the local physical store teams.

We believe that a multichannel operation like Magalu's -- with its more than 1,400 physical stores; its nationwide logistics infrastructure; its ability to develop technology in-house; its ecosystem of complementary companies and its culture -- is best suited to digitize Brazilian retail. We too were once analog. We also passed through the experience of transformation. We know what the challenges are and how to overcome them.

In the year of "#YouBlinkedItArrived", the expansion of Magalu's logistics operation has been exponential. Our network now covers practically every state and is present in more than 3,500 municipalities. We have already surpassed the number of logistic units that we projected for 2021. We currently have 26 distribution centers and 211 cross docking stations, enabling faster delivery for products from our own inventory, 1P, and from marketplace sellers, 3P. Our proprietary logistics network is currently responsible for more than 80% of our 1P deliveries and collects over 65% of 3P orders. It is also worth highlighting our ultra-fast delivery initiative (delivery in up to 1 hour), which is already operating in 80 cities, covering 100% of the capitals where we have stores.

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Earnings Release

3Q21

The ability to leverage physical stores to provide value added services for marketplace sellers is a huge competitive advantage for Magalu. In-storepick-up of 3P marketplace items has evolved significantly over the last 12 months. It is now available in 1,000 Magalu stores and currently represents 10% of total Marketplace orders. In addition, we launched the Agency Magalu initiative - which consists of using our local physical stores as drop-off points for 3P orders - and we have more than 3,000 sellers using the service. Another initiative--Ship from Seller's Store--has also taken shape and now has more than 1,000 participating sellers delivering within 24 hours. The Ship from Seller's Store delivery service is performed by Sode, a rapid delivery startup which we acquired in July that currently has more than 2,000 independent motorcycle delivery partners. This is the advantage of Magalu's multichannel model.

A large part of Magalu's digitalization success is attributable to the Partner Magalu initiative. Small business owners who were previously only familiar with the analog world are now using the technology and value added services built by Magalu to sell online. Partner Magalu offers these marketplace sellers a broad array of services, from inventory management to digital advertising, factoring of receivables to faster delivery.

During the third quarter of 2021, the company's marketplace sales grew 67% relative to the same period last year. Marketplace sales now represent 35% of Magalu's total e-commerce sales. In the last two years, the marketplace has grown more than 300% and it continues to accelerate. Since September, the number of 3P marketplace items sold has been higher than 1P, and in October, Magalu's marketplace growth was in the triple digits. This growth has been driven by the increasing professionalization of existing sellers as well as the performance of new sellers who are increasingly sophisticated.

Total e-commerce grew 22% during the third quarter compared to the previous year. As a result, for the first time, Magalu's quarterly e-commerce sales reached R$10 billion. In the last two years, Magalu's e-commerce has tripled in size. Lu has opened Pandora's box and there is no turning back.

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Earnings Release

3Q21

Magalu is rapidly advancing into new, higher frequency, lower-ticket categories such as fashion. At the beginning of the fourth quarter, we revamped the fashion mini-world inside of our SuperApp. We now offer 300 brands and 3.5 million items, from 21,000 retailers and hundreds of factories, many of whom were onboarded by HubSales, a startup that we acquired that connects factories directly to consumers via marketplaces. Magalu also created its own brand, Vista Magalu. The fashion category in Brazil has annual revenues of R$152 billion and there are over 1.5 million fashion retailers, only 73,000 of whom have taken the first steps toward becoming digital. We are, therefore, barely scratching the surface. From January to September, sales of fashion products at the company grew 170% in Magalu's SuperApp.

In the Cosmetics category, we continued to grow rapidly, gaining 4.2 percentage points of market share according to Neotrust. Sales at our cosmetics company, Época Cosméticos, more than tripled when compared to 2019. Época's accumulated sales up to September of 2021 exceeded R$500 million, which is practically equivalent to the entire year of 2020. At Netshoes, Magalu also gained 4.3 percentage points of market share in the third quarter (Neotrust) and grew SuperApp sales 67%.

In July, we completed the acquisition of Hub Fintech. Hub brings Magalu the regulatory and technological muscle needed to further accelerate our financial services business. On the consumer side, Magalu currently has more than 4 million Magalu Pay accounts, 6.6 million credit cards issued and R$15 billion in its credit portfolio. These numbers alone would place us among the largest digital banks in Brazil. On the business-to-business side, in August, Magalu launched three new mobile point of sale machines including one which is fully integrated with the Partner Magalu program, allowing retailers to make sales physically or via the marketplace. This is what we mean by digitalization.

And this is only the beginning. With millions of potential marketplace sellers and 35 million active customers, the fintech-related opportunities are limitless with ample opportunities to generate cash and reinforce profitability by offering new value added fintech services.

At the end of October, CADE, the Brazilian antitrust agency granted Magalu authorization -- without restrictions -- to proceed with the acquisition of KaBuM!, the leading e-commerce retailer of computer peripherals, accessories and gaming products in Brazil, clearing the last major hurdle needed to consummate the transaction.

Our approach to ESG is no different than our approach to business--total dedication. Like many of our initiatives, affecting real change requires conviction. This quarter, we undertook a few additional steps. In September, we launched the second edition of our successful trainee program for people of African descent. Our goal is that our leadership team reflect the rich racial diversity of our country. We also announced the launch of two new initiatives, Resolve 50+, a program designed to recruit people 50 and over to reenter the workforce by joining our customer support team, and Develop 40+, a program to train and recruit people 40 and over to work as developers at Luizalabs.

Also in September, Magalu attained, for the first time, the gold seal of approval from the Brazilian GhG Protocol Program, a standard used by organizations to measure the emission of greenhouse gases. The gold seal is awarded to companies whose emission inventories cover direct and indirect emissions (Scopes 1, 2 and 3) and all of a company's operations. Compliance is certified by an independent third-party audit. With this certification in hand, we will continue to work to ensure that our operations are sustainable. Along these lines, we are currently testing our first electric vehicles and the goal is to have over 50 in operation by the end of the year. Tomorrow's Magalu will be better than today's Magalu!

In October, Magalu was chosen as the #1 Best Company to Work for in Brazil, in the overall ranking of companies made by the Great Place to Work Institute, in partnership with Época magazine. Though we have been in the ranking for over 20 years -- and perennially win first place in the retail category -- this is only the second time in the company's history that Magalu has achieved overall first place. The first time was in 2003, when the company had only a fraction of the number of employees. Today, we have over 45,000 employees, making it even more of an achievement.

In conclusion, we believe that the coming months will remain turbulent. But we are prepared to face and overcome the macroeconomic obstacles that lie ahead-- just as we have for the last six decades. We remain convinced that our strategy -- the digitalization of Brazilian retail -- is the right one and we remain confident in our ability to achieve it. This storm will pass and we will be stronger for having overcome it.

Once again, we would like to thank our customers, marketplace sellers, employees, shareholders, and suppliers for their continued support.

EXECUTIVE MANAGEMENT TEAM

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Earnings Release

3Q21

	R$ million (except when otherwise indicated)			3Q21			3Q20			% Chg			9M21		9M20			% Chg
	Total Sales¹ (including marketplace)	13,843.8		12,355.5		12.0%		40,062.9	28,584.4		40.2%
	Gross Revenue	10,474.9		10,349.5		1.2%		31,506.1	23,652.3		33.2%
	Net Revenue	8,612.0		8,308.3		3.7%		25,878.2	19,111.3		35.4%
	Gross Income	1,734.1		2,178.7		-20.4%		6,112.5	5,034.4		21.4%
	Gross Margin	20.1%	26.2%		-610 bps		23.6%	26.3%		-270 bps
	EBITDA	134.8		546.1		-75.3%		1,295.5	1,022.4		26.7%
	EBITDA Margin	1.6%	6.6%		-500 bps		5.0%	5.3%		-30 bps
	Net Income	143.5		206.0		-30.3%		497.7	172.2		189.0%
	Net Margin			1.7%			2.5%			-80 bps			1.9%		0.9%			100 bps
	Adjusted - Gross Income	2,129.2		2,178.7		-2.3%		6,507.6	5,034.4		29.3%
	Adjusted - Gross Margin	24.7%	26.2%		-150 bps		25.1%	26.3%		-120 bps
	Adjusted - EBITDA	351.0		561.2		-37.4%		1,233.6	982.3		25.6%
	Adjusted - EBITDA Margin	4.1%	6.8%		-270 bps		4.8%	5.1%		-30 bps
	Adjusted - Net Income	22.6		215.9		-89.5%		193.2	145.7		32.6%
	Adjusted - Net Margin			0.3%			2.6%			-230 bps			0.7%		0.8%			-10 bps
	Same Physical Store Sales Growth	-14.6%	7.2%		-		13.1%	-15.7%		-
	Total Physical Store Sales Growth	-8.0%	18.3%		-		19.4%	-6.3%		-
	E-commerce Sales Growth (1P)	6.7%	149.5%		-		42.2%	124.0%		-
	Marketplace Sales Growth (3P)	67.3%	145.4%		-		73.2%	176.0%		-
	Total E-commerce Sales Growth	22.2%	148.5%		-		50.6%	136.1%		-
	E-commerce Share of Total Sale			72.3%			66.3%			6.0 pp			71.4%		66.5%			5.0 pp
	Number of Stores - End of Period	1,413		1,237		176 stores		1,413	1,237		176 stores
	Sales Area - End of Period (M²)			700,331			656,189			6.7%			700,331		656,189			6.7%

1 Total Sales include gross revenue from physical stores, 1P e-commerce sales and 3P marketplace sales.

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