Smiles Fidelidade S A : announces its 2Q20 Results

SMILES ANNOUNCES 2Q20 RESULTS

Barueri, July 28, 2020 - Smiles Fidelidade S.A.(B3: SMLS3), announces its results for 2Q20. To access the earnings release click here, and to access our Results Center, pleaseclick here.

Highlights

Total cash flow generation - R$ 328,4 million in 2Q20 - despite the strong effect of the Covid-19 pandemic.

95% growth in air ticket issuance and 45% drop in cancellations between April and June 2020. By the end of the quarter, we had already reached about 50% of ticket issuances compared to the same period of 2019.

Reduction of Gross Billings in the annual comparison of 53%, but with a clear upward bias throughout the quarter, with an evolution of 54.8% in the period between April and June. In June, Gross Billings reached 58% of the result recorded in the same month of 2019.

68.8% increase in redemptions at Shopping Smiles between April and June.

Drop of 48.8% in operating expenses, reflecting a constant discipline with costs and a lean structure, with a stable workforce of 148 employees.

The Direct Redemption Margin increased 10.3 p.p. to 37% in 2Q20 versus 26.7% in 1Q20.

Conference Call

Call in Portuguese with simultaneous translation into English
July 29, 2020
10:00 a.m. (New York Time)
11:00 a.m.(Brasilia Time)

Conection NumbersUS: [phone]Brazil: [phone] or [phone]

Webcast: click here.

Contacts:

André Fehlauer
Chief Executive Officer

Hugo Assumpção
Chief Financial and Investor Relations Officer
Maria Laura Pessoa
Investor Relations Manager

Phone: [phone]
[e-mail]
www.smiles.com.br/ir

www.smiles.com.br