Magazine Luiza S A : Dados Econômico-Financeiros

Condensed Parent Company and Consolidated Interim Financial Statements as of and for March 31, 2021

Condensed Parent and Consolidated Interim

Financial Statements as of March 31, 2021

Contents

Independent auditor's report on review of condensed parent
company and consolidated interim financial statements	3
Condensed balance sheets	8
Condensed statements of income	10
Condensed statements of comprehensive income	11
Condensed statements of changes in shareholders' equity	12
Condensed statements of cash flows	13
Condensed statements of added value	14
Notes to the condensed parent company and consolidated interim
financial statements	15

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KPMG Auditores Independentes

Rua Arquiteto Olavo Redig de Campos, 105, 6º andar - Torre A 04711-904 - São Paulo/SP - Brasil

Caixa Postal 79518 - CEP 04707-970 - São Paulo/SP - Brasil Telefone [phone]

kpmg.com.br

Independent Auditors' Report on Review of Condensed Parent

Company and Consolidated Interim Financial Statements

To the Shareholders and Board of Directors of

Magazine Luiza S.A.

Franca - SP

Introduction

We have reviewed the accompanying March 31, 2021 condensed parent company and consolidated interim financial statements of Magazine Luiza S.A. ("the Company"), which comprises:

• the condensed parent company and consolidated balance sheets as at March 31, 2021;
• the condensed parent company and consolidated statements of income and other comprehensive income for three-month periods ended March 31, 2021;
• the condensed parent company and consolidated statements of changes in shareholders' equity for the three-month period ended March 31, 2021;
• the condensed parent company and consolidated statements of cash flows for the three-month period ended March 31, 2021; and
• notes to the interim financial statements.

Management is responsible for the preparation and presentation of these condensed parent company and consolidated interim financial statements in accordance with CPC 21(R1) and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB. Our responsibility is to express a conclusion on this condensed parent company and consolidated interim financial statements based on our review.

KPMG Auditores Independentes, uma sociedade simples brasileira e firma- membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative ("KPMG International"), uma entidade suíça.

KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.

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Scope of Review

We conducted our review in accordance with Brazilian and International Review Standards NBC TR 2410 - Revisão de Informações Intermediárias Executada pelo Auditor da Entidade and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively. A review of condensed parent company and consolidated interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the condensed parent company and condensed interim financial statements

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed parent company and consolidated interim financial statements as at March 31, 2021 is not prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34 - Interim Financial Reporting.

Other Mathers

Condensed statements of added value

We also reviewed the condensed parent company and consolidated statement of added value for the three-month period ended March 31, 2021, prepared under the responsibility of the Company's Management, for which presentation is required in the interim information in accordance with Accounting Pronouncement CPC 21(R1) and IAS 34 - Interim Financial Reporting, which does not require the presentation of the statement of added value. These statements were submitted to the same review procedures described previously and, based on our review, nothing has come to our attention that causes us to believe that the accompanying statements of value added is not prepared, in all material respects, in accordance with Accounting Pronouncement CPC 21(R1) and IAS 34 - Interim Financial Reporting.

São Paulo, May 13, 2021

KPMG Auditores Independentes

CRC 2SP014428/O-6

Marcelle Mayume Komukai

Accountant CRC 1SP249703/O-5

KPMG Auditores Independentes, uma sociedade simples brasileira e firma- membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative ("KPMG International"), uma entidade suíça.

KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.

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Magazine Luiza S.A.

Condensed balance sheets as at March 31, 2021 and December 31, 2020 (Amounts expressed in thousands of reais - R$)

		Note			Parent Company		Consolidated
Assets				03/31/2021		12/31/2020		03/31/2021		12/31/2020
Current assets
Cash and cash equivalents	5		408,562	1,281,569	639,869	1,681,376
Securities	6		745,234	1,220,095	745,394	1,221,779
Trade accounts receivable	7		2,272,531	3,460,711	3,714,318	4,761,899
Inventory	8		6,354,584	5,459,037	6,808,443	5,927,236
Receivables from related parties	9		2,062,462	2,661,364	1,633,939	2,329,648
Recoverable taxes	10		782,042	594,782	895,426	716,118
Other assets				112,879	121,925	183,577	160,754
Total current assets				12,738,294	14,799,483	14,620,966	16,798,810
Non-current assets
Trade accounts receivable	7		16,967	16,140	16,967	16,140
Recoverable taxes	10		643,553	740,927	690,273	787,934
Deferred income tax and social contribution	11		88,369	164,047	128,343	196,736
Escrow deposits	22		770,828	660,734	980,613	843,852
Other assets				3,913	3,703	4,896	6,333
Investments in subsidiaries	12		1,665,002	1,318,347	-	-
Investments in joint venture	13		381,789	386,725	381,789	386,725
Right-of-use of leases	14		2,449,833	2,441,539	2,472,580	2,465,514
Property, plant and equipment	15		1,223,929	1,171,758	1,307,990	1,258,162
Intangible assets	16		631,444	593,427	2,006,141	1,886,997
Total non-current assets				7,875,627	7,497,347	7,989,592	7,848,393

Total assets

20,613,921

22,296,830

22,610,558

24,647,203

See the accompanying notes to the interim financial statements.

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