MAGAZINE LUIZA S.A.

Publicly-Held Company

Corporate Taxpayer ID (CNPJ/MF) 47.960.950/0001-21

Company Registry (NIRE) 35.3.0010481.1

MATERIAL FACT

Magazine Luiza S.A. ("Company") (Ticker - B3: MGLU3) in compliance with Section 157, paragraph 4th, of the Law No. 6,404, dated December 15, 1976, as amended ("Brazilian Corporate Law"), and pursuant to the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários) Rule No. 358, dated January 3, 2002, as amended, announces to its shareholders and market in general that the Company was successful in one of its current lawsuits (MS nº 0001332- 78.2017.4.03.6113) before the Supreme Court (STF) regarding the unconstitutionality of the insertion of Tax on Distribution of Goods and Services - "ICMS" in the calculation basis of PIS and COFINS taxes (Law No. 12.973/14).

As the lawsuit became final and unappellable, the Company has recognized the right to recover, through offset, the amounts monetarily adjusted. The financial impact is being based on the documentation in the Company´s possession and it is in final stage of validation by legal advisors. The best estimates now indicate such credit amounts to be approximately by R$250 million additional amount to the credits recognized in the 2Q19 financial statements.

We emphasize that, in order to take advantage of such credit, this value should still be validated through an administrative procedure before Federal Revenue´s tax authorities (Receita Federal do Brasil).

São Paulo, August 15, 2019.

Roberto Bellissimo Rodrigues

Investor Relations Executive Officer

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Magazine Luiza SA published this content on 15 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2019 21:41:07 UTC