Magazine Luiza S A : Dados Econômico-Financeiros

Earnings Release

4Q23

4Q23: adjusted net income of R$102 million with the highest EBITDA margin in the last three years. Operating cash generation of R$1.5 billion and total cash position of R$9.1 billion.

4Q23 was a turning point for Magalu. Gross Margin reached 30.3%, a growth of 2.5 p.p. compared to 4Q22, driven by DIFAL pass-through (completed in 3Q23), by the success of comercial campaigns, including most profitable Black Friday in our history and by the growth of servisse revenue. EBITDA margin reached 7.2%, a growth of 1.5 p.p. compared to last year. Magalu achieved operational improvements in all sales channels, while financial expenses were 20% lower, representing 4% of net revenue. As a result, Magalu recorded recurring net

income of R$102 million in the quarter.

In 4Q23, Magalu's total sales reached R$18 billion, stable compared to 4Q22. Over the last four years, the average annual sales growth rate was 19%. In 2023, total sales were R$63 billions, a growth of 5% compared to 2021.

Physical stores sales reached R$5 billion during the quarter, increasing by 4% compared to 4Q22, despite a Strong comparison base, of the world cup in 2022. In addition to delivering na increase in sales, Magalu expanded its Market share in 1.2p.p. during the quarter. In 2023, sales totaled more than R$17 billion, with a 4% growth compared to 2022.

E-commerce sales reached R$13 billion during the quarter, stable compared to 4Q22, while the Brazilian e-commercemarket shrank by 10% during the same period (Neotrust). Magalu's average annual e-commercegrowth rate over the last four years was 31%. In 2023, e- commerce sales were R$46 billion, a growth of 5% compared to 2022.

Marketplace sales surpassed R$5 billion during one quarter, growing 10% compared to the same period last year. Over the last four years, Magalu's marketplace has experienced an average annual growth rate of 45%. In 2023, marketplace sales reached R$18 billion, increasing by 17% compared to 2022 and consolitading as the second largest sales channel, reaching almost 30% of total Magalu sales.

The revenues generated by the marketplace services increased by 26% in the quarter. Our marketplace is already profitable, and the more it grows, the more it contributes to the profitability of the ecosystem.

Magalu´s marketplace reached a total of 340,000 sellers, an increase of 80,000 during 2023. Currently, we have a catalog that includes over 128 million offers available for sale, compared to 91 million offers available a year ago.

We have been continuously expanding our logistics and multichannel integration for our marketplace sellers. Currently, 15% of marketplace orders are being delivered via Magalu´s fulfillment operation, compared to 2% in the beginning of 2023. More than 2,800 sellers are benefiting from the unparalleled scale and efficiency of the company's multichannel model.

At MagaluAds, revenue from sponsored products grew 70% in 4Q23 compared to 4Q22. Through advertising services such as display, special products, and sponsored products, we will enhance the visibility of the assortments of suppliers and sellers in our sales channels.

Operating cash generation was R$1.5 billion during the quarter. Magalu ended the quarter with a total cash position of R$9 billion, increading by R$1 billion compared to sep/23. Magalu ended the year with a total net cash position of R$1.7 billion.

Magalu's Fintech operation grew 6% during the quarter to R$27 billion in TPV. One of the highlights was the 17% growth in the volume of payments made to sellers and MagaluPay digital accounts. In the credit card operation, billing reached more than R$15 billion in 4Q23. There are now 7 million issued credit cards and the credit portfolio is R$20 billion. Highlighting the sequential drop in default rates and

the recovery in Luizacred's net profit as well.

MGLU3: R$ 2.10 per share	Conference Call	Investor Relations
Mar 19,2024 (Tuesday)	[phone]
Total Shares: 6,748,926,848
08:00 AM in US (EST)/ 09:00 AM in Brazil	www.magazineluiza.com.br/ri
Market Cap: R$ 14.2 billion
Conference Call Access	[e-mail]

Earnings Release

4Q23

| LETTER TO SHAREHOLDERS

The fourth quarter of 2023 was a turning point for Magalu. Over the last two years, the entire company worked hard to ensure that margins increased and our bottom line returned to positive territory. During this period, we always focused on the bottom line, because, at the end of the day, profit is the oxygen that guarantees the longevity and long-term success of any business. We have adapted our operations to an environment of persistent high interest rates, with detrimental effects on retail - especially the discretionary goods segment. We promised to return to our normal: a growing company that grows with margin and cash generation. And we have kept

that promise. In the fourth quarter of 2023, we recorded our highest EBITDA margin - 7.2% - since 2019, with net income.

This number was accompanied by other figures that show how solid our results are. The EBITDA margin increased 1.2 percentage points year over year. We improved our operating result in all sales channels, while reducing financial expenses by 20%. In the fourth quarter, they corresponded to 4% of total net revenue. Thanks to the combination of these factors, Magalu recorded recurring net income of 102 million reais in the last quarter of the year.

In the period, the operation generated 1.5 billion reais in cash. We closed the year with a total cash position of 9.1 billion reais and further reinforced our capital structure. At the end of 2023,

Magalu's net cash, i.e., less debt, reached 1.7 billion reais.

63 billion reais in sales in 2023. 18 billion reais in 4Q23

Magalu is now Brazil's second-largeste-commerce company. It is also the undisputed leader in durable goods retail, with continuing market share gains. In 2023, the gain reached 1.7 percentage points. The company recorded 63 billion reais in total sales in 2023, up 5% over 2022. The company grew in all channels although, as mentioned earlier, its main focus was profitability.

In physical stores, already operating under a concept that combines revenue generation, a service agency, and a logistics hub, sales amounted to 17 billion reais in 2023, up 4% over 2022. In the fourth quarter, sales from Magalu's 1,286 physical stores totaled 5 billion reais, an increase of 4% compared to the same period last year, when there was a FIFA World Cup, an event that traditionally boosts the electronics market.

Meanwhile, online sales reached 46 billion reais in 2023, up 5% over 2022. Our e-commerce first party inventory (1P) contributed 28 billion reais to this total and recorded a significant margin increase during the year, as a result of the DIFAL (a tax on inter-state commerce) pass-through (completed in the third quarter) and targeted sales campaigns, which, for example, led to the most profitable Black Friday in the company's history. It is worth noting that, in 2023, there was an increase of more than 1 billion reais in taxes paid related to DIFAL.

The marketplace continues to be Magalu's main growth driver. Sales of sellers' products (3P) exceeded 18 billion reais in 2023, 17% more than in 2022. In only six years, the marketplace has become the company's second-largest sales channel, coming before physical stores. Currently, around 30% of everything that is sold by Magalu comes from sellers. What is even better is that the marketplace is the channel which has the best opportunities for expanding GMV, margins, and service revenue generated by our platform.

In 2023, 80,000 retailers from all over Brazil joined Magalu's marketplace. This community currently includes 340,000 entrepreneurs. Together, they help us reach customers with 128 million offerings, compared to 91 million a year ago. In 2023, there was substantial growth in categories such as tires, parts, and accessories for vehicles; headsets and headphones; bicycles; baggage; tools; home and garden; and food supplements. These products have verified origin, guaranteed quality, and brand names in various categories.

Earnings Release

4Q23

Expansion of new services and new categories: diversification of revenue sources

Expanding the marketplace and the value-added services we already offer - and will offer in the future - is essential for our long-term strategy. In 2024, Magalu will accelerate its investments in technology, supporting the evolution of our platform. These investments will be focused on logistics, especially the expansion of fulfillment; MagaluAds; Fintech Magalu; and user experience on the platform, in addition to the development of Magalu Cloud.

Fulfillment already accounts for 15% of orders on the platform, with more than 2,800 engaged sellers. It is worth noting that this represents outstanding growth: in early 2023, the penetration of the service was a mere 2%. Boosting fulfillment means expanding all the advantages of the multichannel model - a trademark of Magalu - to the marketplace. It means taking full advantage of our distribution and logistics infrastructure and the multifunctionality of our physical stores. It also means bringing our 1P service standard to 3P. Thus, we worked towards reducing costs, improving the user experience, and consequently increasing the sales conversion rate.

We see MagaluAds, our digital advertising platform, as a major opportunity for monetizing the audience of the Magalu ecosystem, with around 500 million monthly visits to the websites and apps of all our brands. Through our sales channels, we put suppliers and sellers in touch with customers. Now, we will help them give even more visibility to their assortment, in a targeted way, through investments in display, special projects, and sponsored search. The number of advertisers on our platform grew 120% in 2023. In the fourth quarter, the number of active campaigns increased 140%, while revenue from sponsored products grew 70%.

Fintech Magalu has been rapidly becoming a powerhouse. Magalu Pagamentos processed 28.4 billion reais in total payment volume (TPV) in 2023, 8.1 billion reais of which in the last three months of the year - a quarterly record. In the fourth quarter, the company processed 18.3 million transactions using PIX (instant bank transfer), bank payment slips, credit and debit cards, and MagaluPay balances in the Magalu ecosystem. TPV of MagaluPay Empresas, the digital account used by sellers, MagaluPay Empresas, reached 827 million reais in the same period.

In the consumer financing strategy, Luizacred experienced its own turning point. In the last three months of the year, its net income totaled 18.2 million reais. This improvement was driven by a significantly better credit performance. In the quarter, the short- and long- term default indicators dropped to 3.1% and 9.7%, respectively.

There are clear opportunities in financial service digitalization. We have been working to boost online sales of services such as credit, insurance, and consortium plans, which are already strong in physical stores. This is yet another front for expanding revenue and profitability.

Magalu Cloud - The first Brazilian hyperscale cloud

We launched Magalu Cloud, our public cloud service, in December 2023. Magalu Cloud was developed to serve the needs of Brazilian companies - especially small and medium-sized companies, which often face cost barriers to going digital. The idea is to offer reliability and affordable costs, with fees in reais and support in portuguese. Magalu Cloud is already available for dozens of partners, offering a wide range of cloud services, including computing, storage, network, database, and artificial intelligence.

The service operates in two regions: in the Southeast and in the Northeast. Currently, 30% of Magalu's digital operation is on its own cloud - and this percentage will continue to grow in the coming years.

Our legacy

On January 28th, our Board of Directors approved a private capital increase of 1.25 billion reais, 100% guaranteed by Magalu's controlling family and Banco BTG. The proceeds will be instrumental to accelerate our investments in technology, with the expansion of Luizalabs. We currently have 2,000 developers working to ensure that we will be one of the best digital retail platforms in Brazil. Soon, this number will increase to 3,000. In addition to supporting these investments, part of the amount raised will be used to optimize the company's capital structure, accelerating the reduction in financial expenses. The transaction demonstrates the controlling shareholders' confidence in Magalu's business model, team and strategy for the future. This confidence was shared by many minority shareholders. The adhesion of the base has already reached 86% in the first stage of preemptive rights, while the demand for remaining shares was several times higher.

Earnings Release

4Q23

We are optimistic. We have a well-adjusted company and a promising macroeconomic environment, with rising income and falling interest rates, which should especially benefit the durable goods market. The trend of positive results that we experienced at the end of 2023 continued in early 2024. Our focus remains on operational profit growth, net profit growth, and increasing cash generation. We will continue to build an organization that consistently delivers results, enchants customers, and contributes to inclusion.

We will never give that up. That is the main legacy of Luiza Trajano Donato, or simply Aunt Luiza, Magalu's founder, who has recently left us. An entrepreneur at a time when it was daring for a woman to engage in business, Aunt Luiza always made a point of welcoming and serving those who went into her store, in Franca. She used to say, "Treat everyone the same, regardless of whether they're wearing chintz or silk," and, "It is much more important to respond to a complaint than to make a sale," always full of common sense and simple wisdom.

This is our essence. To honor Aunt Luiza, 2024 will be especially dedicated to enchanting our more than 36 million customers. We will make a leap in the digital experience, driving 3P shopping satisfaction to the same levels seen in 1P. With the help of technology, we will treat each customer as if they were the only one. This is our legacy.

Once again, we thank our customers, sellers, employees, shareholders, and suppliers for their partnership and company in this journey.

EXECUTIVE MANAGEMENT TEAM

|4Q23 Financial Highlights

Total sales with icreased profitability. In 4Q23,

total sales -- including physical stores, e-commercefirst-party inventory (1P) and marketplace (3P) remained stable compared to the same period of the previous year and totaled R$17.9 billion (four-year- CAGR of 18.9%). This was a result of a 1.5% decrease in total e-commerce(four-year-CAGR of 31.0%) and growth of 3.5% in physical stores (four-year-CAGR of 2.9%). In 2023, total sales grew 4.8% reaching R$63.1 billion.

Marketplace reaches 40% of total online sales.

During 4Q23, the Brazilian e-commerce Market shrank by 10.5% according to Neotrust, while Magalu again outperformed the market. During the quarter, e-commerce sales reduced 1.5% and totaled R$12.7 billion. In 4Q23, we held the most profitable Black Friday in history. Magalu's 1P e-commerce sales, reduced 7.8% (four-year-CAGR of 24.7%). Marketplace sales reached R$5.1 billion during the quarter, with a 9.9% growth (four-year-CAGR of 44.6%). The gain in e-commerce market share was driven by the performance of the SuperApp, with

50.0 million monthly active users (MAU). Other contributing factors include faster delivery speeds for 1P and 3P, the growth of new categories and an increase in the seller base.

Gross margin expansion driven by service

margin growth the pass-throughof DIFAL. In 4Q23, the gross margin was 30.3%, a growth of 250 bps from the same period in 2022. It's worth to mention that, compared to 3Q23, the gross margin in 4Q23 remained practically stable, despite it being a more promotional period. After completing the pass-through of DIFAL and with a strategy focused on profitability in 1P e-commerce, the product margin increased by 110 bps. compared to last year. Additionally, service revenue contributed to adding 1.4 p.p. to the total gross margin.

Earnings Release

4Q23

Operating expenses. The percentage of adjusted operating expenses in relation to net revenues was 23.2% in 4Q23, an increase of 150 bps compared to 4Q22. With the increase in the marketplace, it is important to analyze expenses in relation to total sales (GMV). Along these lines, expenses remained stable.

EBITDA and net result. The increase in the contribution margin from the sales channel, especially marketplace, contributed to the growth in adjusted EBITDA, which reached R$756.5 million in 4Q23 with a margin of 7.2%, an increase of 120 bps. in relation to last year. During the same period, the adjusted net result was R$101.5 million, reversing the negative results of the last two years. Considering non- recurring net gains, net profit was R$212.2 million.

Strong cash generation. During the quarter, cash flow from operations was R$1.5 billion, driven by the evolution in the operational result and the variation in working capital, with emphasis on the reduction in inventory levels. In Dec/23, Magalu´s adjusted net cash position was R$ 1.7 billion and the total adjusted cash position was R$ 9.1 billion, including cash and financial instruments of R$3.4 billion and available credit card receivables of R$5.7 billion.

Fintech. Total payment volume (TPV) reached R$27.2 bilion in 4Q23, growing 5.8%. In 2023, the total TPV amounted to R$99.2 billion. In dec/23, the cardholder base reached 6.7 million credit cards. Credit card billing grew 6.8% in 4Q23, reaching R$15.5 billion during the period. In 2023, credit card billing was R$57.5 billion. The credit card portfolio reached R$20.2 billion at the end of the quarter. In dec/23, MagaluPay reached 11.9 million open digital accounts. CDC (direct to consumer credit) surpassed the 10 p.p. of penetration in Magalu's physical stores sales, helping the channel's profitability and accelerating sales.

Earnings Release

4Q23

	R$ million (except when otherwise indicated)		4Q23			4Q22			% Chg			12M23		12M22			% Chg
	Total Sales¹ (including marketplace)	17,947.4		17,959.7			-0.1%		63,056.3		60,160.7			4.8%
	Gross Revenue	13,062.5		13,515.8			-3.4%		45,591.0		45,189.0			0.9%
	Net Revenue	10,549.7		11,167.4			-5.5%		36,768.1		37,299.0			-1.4%
	Gross Income	3,192.8		3,099.7			3.0%		10,163.9		10,438.9			-2.6%
	Gross Margin	30.3%	27.8%		250 bps		27.6%	28.0%		-40 bps
	EBITDA	548.6		642.3			-14.6%		870.5		1,935.3			-55.0%
	EBITDA Margin	5.2%	5.8%		-60 bps		2.4%	5.2%		-280 bps
	Net Income	212.2		(35.9)		-		(979.1)	(499.0)		96.2%
	Net Margin		2.0%			-0.3%			230 bps			-2.7%		-1.3%			-140 bps
	Adjusted - Gross Income	3,192.8		3,099.7			3.0%		10,750.1		10,438.9			3.0%
	Adjusted - Gross Margin	30.3%	27.8%		250 bps		29.2%	28.0%		120 bps
	Adjusted - EBITDA	756.5		673.7			12.3%		2,131.8		2,127.5			0.2%
	Adjusted - EBITDA Margin	7.2%	6.0%		120 bps		5.8%	5.7%		10 bps
	Adjusted - Net Income	101.5		(15.2)		-		(550.1)	(372.1)		47.8%
	Adjusted - Net Margin		1.0%			-0.1%			110 bps			-1.5%		-1.0%			-50 bps
	Same Physical Store Sales Growth	3.7%	13.3%		-		4.7%	0.1%		-
	Total Physical Store Sales Growth	3.5%	14.7%		-		4.0%	5.8%		-
	E-commerce Sales Growth (1P)	-7.8%	18.4%		-		-1.3%	4.7%		-
	Marketplace Sales Growth (3P)	9.9%	11.6%		-		16.8%	18.3%		-
	Total E-commerce Sales Growth	-1.5%	15.9%		-		5.1%	9.2%		-
	E-commerce Share of Total Sale		70.8%			71.9%			-1.0 pp			72.3%		72.1%			0.2 pp
	Number of Stores - End of Period	1,286		1,339			-53 stores		1,286		1,339			-53 stores
	Sales Area - End of Period (M²)		716,298			716,707			-0.1%			716,298		716,707			-0.1%

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

Earnings Release

4Q23

| NON-RECURRING EVENTS

For ease of comparability with 4Q22, 4Q23 results are also being presented in an adjusted view, without the effects of non- recurring provisions and expenses.

	CONCILIATION ADJUSTED INCOME			4Q23		V.A.			Non-recurring			4Q23			V.A.
	STATEMENT (R$ million)			Adjusted
	Gross Revenue			13,062.5		123.8%			-		13,062.5		123.8%
	Taxes and Deductions			(2,512.7)		-23.8%			-		(2,512.7)	-23.8%
	Net Revenue			10,549.7		100.0%			-		10,549.7		100.0%
	Total Costs			(7,356.9)		-69.7%			-		(7,356.9)	-69.7%
	Gross Income			3,192.8		30.3%			-		3,192.8		30.3%
	Selling Expenses			(2,036.0)		-19.3%			-		(2,036.0)	-19.3%
	General and Administrative Expenses			(342.1)		-3.2%			-		(342.1)	-3.2%
	Provisions for Loan Losses			(104.7)		-1.0%			-		(104.7)	-1.0%
	Other Operating Revenues, Net			37.1		0.4%			(207.9)	(170.8)	-1.6%
	Equity in Subsidiaries			9.3		0.1%			-		9.3		0.1%
	Total Operating Expenses			(2,436.3)		-23.1%			(207.9)	(2,644.2)	-25.1%
	EBITDA			756.5		7.2%			(207.9)	548.6		5.2%
	Depreciation and Amortization			(305.4)		-2.9%			-		(305.4)	-2.9%
	EBIT			451.1		4.3%			(207.9)	243.2		2.3%
	Financial Results			(437.7)		-4.1%			210.5		(227.2)	-2.2%
	Operating Income			13.4		0.1%			2.6		16.0		0.2%
	Income Tax and Social Contribution			88.1		0.8%			108.1		196.2		1.9%
	Net Income			101.5		1.0%			110.6			212.2			2.0%

| Adjustments - Non - Recurring Events

Adjustments	4Q23
Tax Credits	1.3
Gain on Sale of Assets	(6.5)
Sale of equity stake	201.9
Tax Provisions¹	(373.9)
Expert Fees	(4.4)
Non Recurring Expenses ²	(33.7)
Other Expenses	7.4

EBITDA Adjustments	(207.9)
Fair value of acquisition-related liabilities³	210.5
Financial Result Adjustments	210.5
Deferred income tax and social contribution - Netshoes4	108.9
Income Tax and Social Contribution	(0.9)
Net Income Adjustments	110.6

¹ It mainly refers to the provision for ICMS - DIFAL in the amount of R$369.3 million, in which the Company believes that the chances of loss are higher than th ose of gain, although the publication of the judgment's ruling by the STF is still pending.

• Primarily including provisions regarding the closure of 23 stores in early 2024 and relocation of a distribution center ³ Adjustment of the value to be paid in shares for the acquisition of companies.
  4 Accounting for deferred income tax (IR/CS) on accumulated losses from previous years, due to positive results in recent periods.

Earnings Release

4Q23

| Resubmission of the 3Q23 results

On March 6, 2023, Management became aware of an anonymous complaint regarding alleged practices inconsistent with the Company's Code of Conduct and Ethics. Consequently, the Board of Directors instructed the Audit, Risk, and Compliance Committee to investigate the allegations in the anonymous complaint, with the assistance of independent external experts. The investigation concluded that the anonymous complaint was unfounded.

Based on the analyses conducted by management up to that point, and subject to further audit procedures, adjustments were made in the quarterly information as of September 30, 2023, concerning the recognition of bonuses with the restatement of balance sheets from previous periods.

During the last quarter, after completing the analysis of documentation and formalizations, no incorrect accounting entries were identified in the initial recognition of supplier bonuses. Considering recent publications on best practices in the accounting recognition of supplier bonuses, the Company reviewed the estimates of bonus balances to be received and made the necessary accounting adjustments entirely in the quarterly information as of September 30, 2023, without restating balance sheets from previous periods, maintaining the same adjustment value disclosed in the Relevant Fact on November 13, 2023. There were no changes to the equity and other balance sheet balances presented as of September 30, 2023.

It is worth noting that the Company enhanced its internal controls and implemented a new fully automated system (tradelinks) for managing campaigns with suppliers to improve accuracy in its estimates and accounting recognition in the appropriate period.

	CONCILIATION ADJUSTED INCOME			3Q23		V.A.			Non-recurring			3Q23			V.A.
	STATEMENT (R$ million)			Adjusted
	Gross Revenue			10,571.0		123.2%			-		10,571.0		123.2%
	Taxes and Deductions			(1,992.2)		-23.2%			-		(1,992.2)	-23.2%
	Net Revenue			8,578.8		100.0%			-		8,578.8		100.0%
	Total Costs			(5,969.4)		-69.6%			(586.3)	(6,555.7)	-76.4%
	Gross Income			2,609.4		30.4%			(586.3)	2,023.1		23.6%
	Selling Expenses			(1,724.6)		-20.1%			-		(1,724.6)	-20.1%
	General and Administrative Expenses			(358.9)		-4.2%			-		(358.9)	-4.2%
	Provisions for Loan Losses			(77.5)		-0.9%			-		(77.5)	-0.9%
	Other Operating Revenues, Net			33.5		0.4%			(187.3)	(153.8)	-1.8%
	Equity in Subsidiaries			5.6		0.1%			-		5.6		0.1%
	Total Operating Expenses			(2,121.9)		-24.7%			(187.3)	(2,309.2)	-26.9%
	EBITDA			487.5		5.7%			(773.6)	(286.0)	-3.3%
	Depreciation and Amortization			(309.7)		-3.6%			-		(309.7)	-3.6%
	EBIT			177.8		2.1%			(773.6)	(595.7)	-6.9%
	Financial Results			(456.2)		-5.3%			155.6		(300.6)	-3.5%
	Operating Income			(278.3)		-3.2%			(618.0)	(896.3)	-10.4%
	Income Tax and Social Contribution			135.0		1.6%			263.0		398.0		4.6%
	Net Income			(143.4)		-1.7%			(355.0)			(498.3)			-5.8%

Earnings Release

4Q23

	Adjustments	3Q23
	Accrual adjustment¹	(586.3)
	Gross Profit Adjustments	(586.3)
	Tax Credits	523.8
	Gain on Sale of Assets	(8.4)
	Tax Provisions	(10.2)
	Expert Fees	(10.3)
	Estimates review	(670.7)
	Other Expenses	(11.6)
	EBITDA Adjustments	(773.6)
	Update - Tax Credits	155.6
	Financial Result Adjustments	155.6
	Income Tax and Social Contribution	263.0
	Net Income Adjustments	(355.0)

¹ The accrual adjustment combined with the estimates review amount to R$829.5 million net of taxes as per the relevant fact disclosed on November 13, 2023.

Earnings Release

4Q23

| OPERATING AND FINANCIAL PERFORMANCE

Magalu ended 4Q23 with 1,286 physical stores, (1,049 conventional, 237 virtual). During 4Q23, the company closed 17 kiosks. Over the last 12 months, the Company opened 1 new store in the Southeast. Twenty-seven percent of our total number of stores are in the process of maturation.

		Number of Stores		Average Age of Stores (number of stores)
1,339	1,302	1,303	1,303	1,286
237	237	237	237	15	140
	237
54	17	17	17		42
					151
1,048	1,048	1,049	1,049	1,049

						937
4Q22	1Q23	2Q23	3Q23	4Q23
	Conventional Stores	Kiosks	Virtual Stores		Up to 1 year	Up to 2 years	Up to 3 years
					Up to 4 years	Up to 5 years	More than 5 years

In 4Q23, Magalu´s total sales remained stable (18.9% four-year CAGR), as a result of a 1.5% decrease in e-commerce sales (31.0% four-year CAGR) and a 3.5% increase in physical store sales (2.9% four-year CAGR). It is worth highlighting the performance of the marketplace, which grew 9.9% in 4Q23 (44.6% four-year CAGR). Total retail sales were up 4.8% in 12M23, as a resulto of a 5.1% growth in e-commerce sales and a 4.0% growth in physical stores sales.

					Total Sales Growth (%)
	Same Physical Store Sales Growth		Marketplace E-commerce Growth (3P)
	Physical Store Total Sales Growth		Total E-commerce Growth (1P+3P)
	Traditional Ecommerce Growth (1P)
		Total Retail Sales Growth
		18.4%						18.3%		16.8%
		15.9%	15.5%
13.3%	14.7%
	11.6%
				9.9%
							9.2%	8.2%
						5.8%
				3.5%		4.7%		3.4% 4.0%	5.1%	4.8%
			2.5%
					0.1%
					-1.5%	-0.1%				-1.3%
				-7.8%
		4Q22		4Q23				12M22		12M23

In 4Q23, the share of cash (non-installment) sales remained stable at 32% compared to the same period in 2022. During 12M23, the share of cash (non-installment) sales increased from 29% to 33%. The increase in cash sales was driven by widespread PIX adoption, especially at Kabum, Netshoes and Magalu, which contributed to the mitigation of financial expenses.

	Financed Sales Mix (% of total sales)
32%	32%	29%	33%
49%	47%	51%	47%
19%	21%	20%	20%
4Q22	4Q23		12M22	12M23