Institutional Presentation April 2019

Transcription

1 Institutional Presentation April

2 GPA Overview 4Q18 and 2018 Results Business Units Digital Transformation Private Label Company Structure Glossary 2

3 GPA Alimentar Food in em numbers números Gross Sales Number of Stores Sales Area ('000 sqm) Footprint in Brazil 2017 R$ 48.4 bn 1,081 1, States 2018 R$ 53.6 bn 1,057 1, States Total Employees (1) Distribution Centers & Depots Tickets Capex k MM 19 Estados + DF R$ 1.4 bi k MM R$ 1.7 bi In Brasil: 1st Largest traditional retailer 2nd Second largest player in cash & carry (1) On a full-time equivalent (FTE) basis 3

4 GPA Food Overview Diversity of formats to meet different consumer needs Multivarejo Assaí Extra Hypermarkets and Supermarkets Pão de Açúcar Supermarkets Premium Proximity Other Businesses Commercial Centers Drugstores and Gas Stations Cash & Carry 32.2% Sales 13.9% Sales 2.4% Sales 5.0% Sales 46.5% Sales #Stores Hypermarkets: 112 Supermarkets: 186 #Stores Supermarkets: 186 Food Delivery #Stores Minuto: 79 Mini Extra: 156 #Stores Drugstores: 123 Gas stations: 71 GLA~ m² #Stores Assaí: 144 Data for December 31,

5 Multi-format food player Focused on meeting the needs of clients related to different necessities and occasions, with the following formats: hypermarkets, supermarkets, drugstores and gas stations. Extra banner offers food, electronics and home appliances and apparels. The Pão de Açúcar banner refers to the Company's premium supermarket chain. It is considered the benchmark for innovation in the retail sector and promotes the concepts of healthy living and sustainability. The Cash & Carry segment focuses on customers from small and midsized companies and also on the end customer who looks for products at more competitive prices. It offers groceries, food, perishables, beverages, packaging, personal care and cleaning products, among others. 285 stores* 186 stores 144 stores Convenience format that offers differentiated assortment and a practical and cozy environment, in stores measuring about300 m 2. Prioritizes client comfort through customized services and initiatives. Convenience format to meet day-to-day needs, mainly commodities and perishables. In stores measuring about 300 m 2, its value proposition is to offer convenience at the best price. Supermarket format dedicated to serving the needs of public B and C, focusing on excellence in service and services compatible with regional supermarkets 79 stores 156 stores 13 stores** * It also operates 123 drugstores and 71 gas stations as of December 31, 2018 ** First wave 5 of conversions from Extra Super to CompreBem 5

6 Nossa Presença é uma vantagem competitiva Our Footprint is a differential competitive advantage Stores located in 19 of the 27 Brazilian States* Brazil s GDP: 5.4% GPA Sales**: 2.3% Brazil s GDP: 13.4% GPA Sales**: 18.7% Region Super Hyper Cash&Carry Proximity Total North Midwest Southeast Northeast Brazil s GDP: 9.6% GPA Sales**: 8.3% Brazil s GDP: 55.4% GPA Sales**: 68.9% South Total *Stores as of December 2018, Gas station and drugstores are not included. ** Share of Food Businesses net sales in 4Q18. GDP as of 03/31/2018 Brazil s GDP: 16.2% GPA Sales**: 1.8% 6

7 Strengthening the multi-channel, multi-format and multi-region portfolio Share of gross sales Market share (1) Key portfolio optimization initiatives Premium Mainstream Cash and Carry Delivery Others (2) 18% 38% 13% 7% 24% 15% 24% 8% 6% 47% 6.3% 14.5% 28.5% 23 stores opened since 2014 Renovation of 95 stores in the last 2 years, of which 20 in the G7 concept: improvement in service level Innovations and digital pioneerism: ~70 Express and ~50 Click & Collect Expansion of Minuto Pão de Açúcar in recent years: 66 stores opened since 2014 Clustering: adjustments to assortment and reactivation of promotional campaigns Aliados: more than 500 partners Sales per region Midwest Northeast % 8% 2% 11% 8% 19% Conversion of 19 hipers to Assaí in the last 3 years Malls: optimization of sales area, adding 50,000 m2 of GLA in the last 2 years Mercado Extra: first wave of 23 stores during 2018 Compre Bem: conversion of 13 stores by year-end North Southeast South 77% 69% 2% Strong expansion in recent years: 61 stores opened since 2014, in 6 new states (1) Source Nielsen - AS Brasil (Dec-18) / (2) Includes gas stations, drugstores, malls and partners / Launch of financial services: more than 500,000 cards 7

8 Historical Figures - CAPEX and ROCE Less cyclical and more balanced portfolio: allocation of investments to maximize returns 16.5% 16.1% 14% Adjusted EBIT / Capital employed 11% 10% Maintenance of high level of Capex: allocation to higher return formats CAPEX (1) 1.1 bn 1.4 bn 1.2 bn 1.4 bn 1.7 bn 46% 35% 34% 44% 42% 21% 37% 40% 33% 37% 33% 28% 26% 23% 21% New stores, land acquisition and conversions Store renovations and Maintenance Infrastructure and Others (1) Breakdown in % does not consider cash impacts / (2) Does not consider Infrastructure and Others 8

9 GPA Food Strategy - Main Pillars % Portfolio Optimization Repositioning of Private-Label Brands Digital Transformation Operation / Efficiency Strong expansion of Assaí Revision of Extra Super positioning: Conversion to Compre Bem Revitalization to Mercado Extra Revitalization and modernization of assets: Renovations of Pão de Açúcar Repositioning of Extra Hiper Renovation of gas stations and drugstores Greater attractiveness of commercial centers People Productivity People development Repositioning of the brand Qualitá, new packaging design and communication campaign Greater quality and price competitiveness Complete revision of assortment Taeq brand strengthening Rollout of the integrated model with partner suppliers Training: improvement in service level Creation of Executive Officer position Strengthening of loyalty program: My Discount / My Rewards (partnership with Livelo) Chef Time partnership Food e-commerce: redesign of website and expansion of "delivery express" and "click & collect" services Sustainability Diversity Raising consumer awareness and production chain Social investment Management of environmental impact More dynamic sales and promotional creativity Segmentation of offering according to the characteristics of each micro-region Perishables as a differential Optimization of the logistics model (e.g.: Mini Hub) Reduction in shrinkage level 9

10 2019 Outlook Net Sales: o Multivarejo: same-store sales growth of around 100 bps above IPCA inflation rate o Assaí: same-store sales growth of around 200 bps above inflation and total sales over 20% EBITDA Margin : o Multivarejo: growth of around 30 bps from 2018 o Assaí: expansion of approximately bps vs Other operating income and expenses: o Maintenance of 2018 levels, of around R$ 200 million p.a. Capex: o R$1.7 billion to R$1.8 billion, focus on higher-return projects related to expansion/optimization of formats Digital Transformation: focus on innovation and acceleration of omnichannel strategy o o o o o Expand active client base, increasing the relevance of users and expanding the share of industry; Maintain leadership of food e-commerce with significant growth Cheftime: continue the expansion of 30 Pão de Açúcar, 3 Minuto Pão stores and expand e-commerce sales James Delivery: launch of the platform in São Paulo in 2Q19 and expansion to 10 cities by the year-end Wine Cellar Adega : platform expansion, ensuring omnichannel experience. 10

11 GPA Overview 4Q18 and 2018 Results Business Units Digital Transformation Private Label Company Structure Glossary 11

12 2018: Highlights OPTIMIZATION OF STORE PORTFOLIO 15 Pão de Açúcar stores renovated into the new model 23 Extra Super to Mercado Extra 13 conversions to Compre Bem EXPANSION 18 Assaí stores inaugurated in 2018 DIGITAL TRANSFORMATION Creation of the Digital Transformation Executive Area Partnership with Cheftime Acquisition of James Delivery Strong growth in food e-commerce Launch of Pão de Açúcar Adega My Discount app: million downloads PRIVATE-LABEL BRANDS Portfolio repositioning +500 products launched Better quality and price competitiveness Complete revision of assortment INVESTMENTS Over 1.7 billion in 2018 Confidence in execution of strategy and recovery R$53.6 billion revenue, market share gains in all segments R$1.3 billion net income, more than double vs Product and service offering better aligned with consumer market needs of economic 12 scenario 12 Resultados 3º Trimestre de de outubro

13 GPA Food: better operating performance across all segments resulted in solid net margin expansion Food Business - R$ million 4Q18 4Q17 D % D % Gross Sales 15,237 13, % 53,616 48, % Gross Profit 3,050 2, % 11,073 10, % Gross Margin 21.8% 22.7% -90bps 22.4% 23.0% -60bps SG&A -2,288-2, % -8,354-8, % SG&A (% net sales) 16.3% 18.0% -170bps 16.9% 18.1% -120bps Adjusted EBITDA (1)(2)(*) % 2,846 2, % Adjusted EBITDA Margin 5.7% 5.0% 70bps 5.8% 5.2% 60bps Net Income - Controlling Shareholders - continuing operations % 1, % Net Margin- continuing operations 3.4% 2.0% 140bps 2.6% 1.3% 130bps Store portfolio better adapted to demands of consumer market: real sales growth above the market, with improved results; Strong growth in gross sales revenue: continuity of solid performance by Assaí and consistent improvement in Multivarejo; Significant dilution of operating expenses: rigorous control of expenses at Multivarejo and Assaí; Growth of Adjusted EBITDA: expansion in line with guidance at Multivarejo and above expectations at Assaí; Net income growth resulted in higher net margin, which doubled in the year. (*) Excluding tax credits. (1) Earnings before interest, tax, depreciation and amortization. (2) Adjusted for Other Operating Income and Expenses. Resultados 3º Trimestre de de outubro

14 Financial result improves to 1% of net revenue, with low leverage Financial Result Net Debt (1) -60 bps Net Debt (1) / EBITDA (2) x x 1.6% % (R$ million and % of net sales) V (R$ million) 366 4Q17 4Q18 (1) Includes unsold credit card receivables. (2) EBITDA in last 12 months. (R$ million and % of net sales) 1.6% 206 4Q bps 0.4% 60 4Q18 Cash & Equivalents Cash position in Dec/18: R$4.4 billion and unsold receivables totaling R$96 million V R$1.8 billion in pre-approved/confirmed credit lines CAPEX R$598 million in 4Q18, +68.7% vs. 4Q17 R$1.7 billion in 2018, +28.8% vs Resultados 3º Trimestre de de outubro

15 Multivarejo: sales performance combined with greater operating efficiency resulted in significant increase in profitability (Growth vs. 4Q17) +0.2% Gross Sales Revenue 4.3% 4.5% -1.3% 3.2% (R$ million and % of net sales) -150 bps 23.5% 22.0% 1,661 1,612 SG&A 23.4% 6, bps 22.6% 5,996 Same-store Calendar effect Same-store ex-calendar effect Expansion/ Closures Total Stores 4Q17 4Q EBITDA (1) (2) Highlights (R$ million and % of net sales) 4.7% bps 5.5% % 1, bps 5.5% 1,467 Gross sales revenue of R$7.9 billion in 4Q18: SSS of 4.5%, maintaining the level around mid-single since March. Reduction in SG&A: significant decline of 3.0% and strong dilution, due to lower personnel expenses and rigorous control of general expenses. EBITDA growth (1) : +21.2%, with increase in EBITDA margin to 5.5% Net Income: expansion to R$120 million, with margin of 1.6%. 4Q17 4Q (1) EBITDA adjusted for Other Operating Income and Expenses (2) Excluding tax credits Resultados 3º Trimestre de de outubro

16 Multivarejo: successful commercial actions, digital transformation initiatives and repositioning of private-label brands EXTRA HIPER 112 Stores EXTRA SUPER 150 stores MERCADO EXTRA 23 stores PÃO DE AÇÚCAR 186 Stores PROXIMITY 235 Stores (*) Consistent market share gain (*) and consolidation of SSS at midsingle digit Commercial activation: Successful campaigns, especially for seasonal dates Outlook: strong calendar activation; focus on quality and assortment of perishables; improvement in occupancy cost; profitability growth Extra Super: acceleration in the performance due to revitalization of stores o Mercado Extra: 23 stores inaugurated in the year o Sales growth after conversion: ~30% Outlook: continue the store revitalization projects Acceleration of sales over the quarter, with consistent market share gain 20 stores were renovated based on next recent generation concept (G7): significant growth in relation to unrenovated stores Outlook: projects focused on innovation and differentiation, consolidating the leadership in the high-value segment Significant double-digit sales growth since March, with market share gain: o Commercial dynamics o Strengthening partnerships with suppliers o Synergy of marketing strategies among the banners Outlook: consolidate 2018 strategies; optimize store portfolio; and resume expansion of Minuto Pão de Açúcar (**) (*) Market share gain in the hypermarkets segment Excluding 123 drugstores and 71 gas Resultados and AS Brasil, 3º Trimestre source Nielsen. de de outubro 2018 stations 16

17 Assaí: solid performance and continuous growth in profitability Gross Sales SG&A% (D% vs. 4Q17) +13.7% 23.6% (% of net sales) 9.6% +0.3% 9.9% -60 bps -20 bps Same-store Calendar effect Same-store ex calendar effect Expansion Total Stores 10.7% 4Q % 4Q % 10.3% EBITDA margin (1) (2) Highlights (R$ million and % of net sales) 5.3% +70 bps 6.0% Q17 4Q bps 6,0% 5.6% 1,379 1, Gross sales revenue of R$7.3 billion: significant total and SSS growth, with market share gain. SG&A Dilution: greater efficiency of expenses, despite the accelerated store expansion. Significant increase in EBITDA margin: +70 bps to 6.0% Net income growth: +37.9%, with net margin of 5.2% (1) EBITDA adjusted for Other Operating Income and Expenses and excluding tax credits (2) Resultados 3º Excluding Trimestre tax de credits de outubro

18 Assaí: Continued strong growth pace ASSAÍ 144 stores COMPRE BEM 13 stores Expansion of nationwide footprint, with maintenance of successful expansion Opening of 10 stores in 6 different states, totaling 18 openings in 2018 Consistent growth for the next 3 years: expansion of 15 to 20 stores per year Conversions: 13 stores in 2018 Significant sales growth after conversion: above 50% Next 3 years: roll-out of Extra Super stores into Compre Bem Resultados 3º Trimestre de de outubro

19 GPA Overview 4Q18 and 2018 Results Business Units Digital Transformation Private Label Company Structure Glossary 19

20 Strong geographic expansion in the last 5 years PB PE 2013 AL 2018 CE AM PA PI CE RN PB PE AL SE 75 stores 12 states 272,000 m2 of sales area Average area: 3,600 m2 11,500 employees MT MS PR GO DF SP RJ BA 144 stores 18 states 598,000 m2 of sales area Average area: 4,200 m2 29,900 employees MT MS DF GO SP PR MG RJ BA Sales area twice as larger compared to *Includes organic expansion and conversions Not including the closure of 2 stores since

21 Compre Bem Pilot store conversion Extra Supermarket to Compre Bem Expertise in lowcost operations Operating knowledge of supermarkets and management of categories Positioning Expansion Differential Low Cost Competitors: regional supermarkets Target public: B and C Classes Price: With lower variation, competing with key regional players 1st Wave: pilot conversion of 13 stores in 2018 Roll-out in the next coming years Focus: Excellence in customer service and services compatible with regional supermarkets Assortment: 7,000 products, with excellence in meat, bakery, fresh produce services Operation: Low logistics and IT costs Marketing: Offers flyers and digital communication Direct delivery in store: Perishable receipt 21

22 Priorities Maintain the initiatives of 2018, expand and optimize Growth of sales and market share Maintain SSS growth above inflation Market Share Gain Expansion Expansion of Assaí s nationwide footprint, seeking consolidation Excellent expansion productivity Opening of Assaí s stores/year Roll-out of Extra Super stores into Compre Bem Increase operational efficiency Control of Working Capital Control of expenses Increase in productivity Expansion supported by own cash generation Financial Solutions Expansion of the portfolio of financial products and services 22

23 Extra: Value Proposition Low price and varied assortment Customer experience Scope & Amplitude Focus on Perishables category Operational excellence Seasonal events and commercial activations Focus on customer satisfaction Training for Extra employees: Click Movement Leveraging Clube Extra Increased Digitalization, with the focus on the App Collect & Win promotion for all customers Long Live the Neighborhood: store as a community center Footprint Complete solution Wide assortment Private-label Exclusive imported goods Store in Store Quality and freshness every day Complete basket of perishables Excellence in service: customer counter Experimentation through tasting events Differentiated activation such as Carretão, seasonal, own manufacturing and fishmonger Conversions & Modernizations Multifunctionality Revision of assortment Logistical efficiency & Mini Hub Improvement of store processes: Productivity Optimization of expenses Busy commercial activation calendar Introduction of new sales dates in the Brazilian calendar Focus on activation of major category festivals Increased use of digital means in calendar activation: EVERYTHING 23

24 Key initiatives modernization of Extra Super in 2018 Revision of assortment More restricted assortment in grocery Greater emphasis on perishables EXTRA Mercado: roll-out of pilot project 23 stores opened in the São Paulo metropolitan region as pilot project R Price repositioning Low "high-low" intensity Commercial Alignment New commercial activation dynamics Price Repositioning Private-label Increase in share Broader mix of items Promotional alignment with Extra Hiper Private-label 24

25 Extra Priorities Optimization and increased profitability of assets: Parking Lot Malls Warehouse Sales Area Expand the leadership in e-commerce and multichannel platform Optimize Clube Extra Make communications digital Expansion of Express Expansion of Last miller Reinforce brand differentiation through: Perishables, Non-Food, Private-label and Store in Store Revitalization of stores: Extra Super to Mercado Extra Initiatives to sustain sales growth above inflation: Busy commercial activation calendar Focus in seasonality and Clube Extra Continuance of collectible campaigns 25

26 Brand Positioning Happiness Our PROPOSITION To inspire, encourage and offer means so that more and more people understand that happiness (theirs, those around them and the planet) is simple, real and within our reach. Our TERRITORY Imperfect happiness, daily, possible, real and personal Nossos MODELOS DE NEGÓCIOS Minuto Sorts my life out Supermarket "It's part of my routine and my life" E-commerce Makes my life easier with a click" DIFFERENTIATION "Assortment with highlights for launches and differentiated, which inspire and encourage my daily happiness BUSINESS PILLARS INNOVATION "Services that surprise and enchant, guaranteeing my loyalty with Pão" EQUILIBRIUM Inspires me to take care of my body and the planet" PÃO de AÇÚCAR MAIS APP 26

27 G7 A new store concept Differentiated value proposition and layout Fresh Market concept:: Expansion and grouping of the perishables area Highlight being the wellness concept and assortment: organic products, bulk products and natural beverages Services: New model of bakery, butchery, fishmonger Perpendicular grocery shelves Omnichannel Reinforcement of the healthy and affordable positioning Store in store concept 20 renovated stores in G7 format by the end of 2018 which represent 16% of the sale 27 22

28 Priorities Pão de Açúcar DIFFERENTIATION: Assortment: Consolidation of high-end positioning with excellence in service level and assortment and focus in quality on F&V and perishables (Perfect F&V). Greater focus on healthy products Operational efficiency: Expansion of MMOVE. Innovation: Continue to reinforce Digital Transformation through the app, acceleration of Store in Store to over 70 stores and Cheftime expansion for all stores in São Paulo state untill 2019; Focus on Private Label for differentiation and price perception. 2 Continuation of store renovations for the new Generation: 2019: 10 to 15 stores. 3 Resumption of the banner expansion process 28

29 Main Initiatives Proximity Mini Extra and Minuto Pão de Açúcar Commercial Dynamics Revision of assortment and adjustment of cluster; Build loyalty with differentiation in the Bakery and Fresh Produce categories and penetration of Private-label Brands; Valuation and focus on categories aligned with the Proximity format: Liquid / Snacks (Yogurts) / Snacks. Marketing Strategy Synergy in promotional dynamics at Extra Alignment with Pão de Açúcar in Minuto PA; Promotional dynamics with "My Discount" app. Private-Label First Prices Focus on private-label:quality price perception and loyalty; Entry of first-price products to strengthen competitiveness in lower income neighborhoods. 29

30 Proximity Priorities for Consolidate the strategies implemented in 2018; Consolidate profitability by optimizing costs and the store portfolio; Optimize assortment clusterization. Winning format: Resumption of the Expansion in 2019, with at least 15 stores and progressive acceleration for coming years. Gas stations Continue investments in price communication at points of sale; Continue investments in technology to increase productivity; Expansion of gas stations Drugstores Continue the renovation plan in order to continue modernizing stores. Allies Consolidate relationship of trust with the 500 registered Allies; Implement sales website to reach other players (restaurants / hotels / etc). 30

31 GPA Malls: Scope and strategy Our reach in Brazil Management of more than 250 commercial centers and 2 convenience street malls Almost 300,000 m² of GLA managed across Brazil Present in 22 states and the Federal District More than 3,500 agreements with merchants and partners Strategy for the future Focus on productivity and operational efficiency Short-term actions Continuous improvement in relationship with customers Medium-term actions Square meter monetization and GLA growth: develop areas for small and midsized projects Media: Expand our reach in the Media Business Future actions Business Model: Develop new revenue sources 31

32 GPA Overview 4Q18 and 2018 Results Business Units Digital Transformation Private Label Company Structure Glossary 32

33 Digital Transformation: progresses and assets Loyalty programs M customers registered in the Loyalty Program suppliers using the platform + 7.5MM Downloads ~ 60% of de Identified Venda Identificada Sales ~ 85% of de Identified Venda Identificada Sales INITIATIVES that helped improve the customer s shopping experience Express Checkout ~ 1M used the express checkout functionality + R$150M dof additional EBITDA My preferences / Digital invoice 110K registered (+10% WoW) 50% requested not to print invoice 500K avoided interactions Sales Growth (Before and after My Discount) + 17% Payment Options 1% of total sales + 12% 33

34 Digital Transformation: progresses and assets Network and Innovation Gamification Big Data Facial Recognition Blockchain Mobile Payment Geolocation Chatbot Monetization of traffic Customization of the experience Artificial Intelligence Delivery & Market Place PROSPECT TEST SCALE-UP INTEGRATE Liga Retail Program CUBO Partnership GPA Lab 34

35 Digital Transformation: Expansion of GPA e-commerce more than 44% growth in e- commerce in Highlights DC SALE EXPRESS Click & Collect 70 stores 50 stores Outlook 2019 Continuous improvement of user experience / user interaction E-commerce new experiences New shopping App Content Blogs (+2MM access) Wine signature James Delivery acquisition and Chef Time partnership Express Operations More than 30% of online total sales More than 300 thousand orders 12 Brazilian States Roull-out in São Paulo in 2Q19 and expansion to 10 cities in 2019 Strengthening of "Express" and "Click and Collect": 120 stores Rollout of 30 Pão de Açúcar Stores, 3 Minuto and expansion of the e- commerce Expansion of Adega platform 35

36 TOTEM James totems in the brick and mortar stores DIGITAL Promotion of James Delivery through loyalty apps and START OF THE OPERATION IN SP By the end of 2019: The entire city of São Paulo will be served. Expansion to 10 more Brazilian cities. BANNER Banners in the stores: walls, shop cashiers, shop carts, market shelves, floor, among others STORE LIGHTING Illumination on the stores front with the app color James Delivery is a multiservice platform for order and delivery in minutes of diverse products that range from items sold in supermarkets to restaurants and drugstores OUTDOOR Outdoors in strategic points of the city 36

37 Digital Transformation: priorities + 50% growth of user base in loyalty apps Growth of e-commerce, with the focus on shipping from store New digital products focused on reducing friction and convergent experience (on/off) Investment in technology and agile culture Develop startup ecosystem 37

38 GPA Overview 4Q18 and 2018 Results Business Units Digital Transformation Private Label Company Structure Glossary 38

39 Private Label: a strategic pillar for the Company Why do we produce Private-Label? Price Perception Quality Perception Prices about 25-30% lower than the benchmark/leader in the category Same or superior quality as the benchmark/leader in the category Loyalty Differentiation Iconic products and brands that are attractive to consumers Improved Competitiveness Innovation Democratization New and exclusive products in our stores Guaranteed high-quality products and low prices for all Profitability higher than national brands How we operate with Private- Label Brands? Partnership with Industry Communication / Creation of Brands Specialized Team Quality Assurance 39

40 Private Label: our brands Day by day Stylish clothes for everyday Healthier life A stylish house A chef's touch to the routine Celebrate the good times in life 40

41 Private Label: Priorities Increase of the penetration around 11.5% in 2018, focus in reaching 20% of share by 2020 Increase Taeq sales, democratizing healthy foods Extension of integrated suppliers model INTEGRATED: TOTAL PARTNERSHIP OPEN BOOK MODEL TRANSACTIONAL: TRADITIONAL MODEL Pipeline of constant innovation at 500 SKUs p.a. Building new private-label and strengthening current brands 41

42 GPA Overview 4Q18 and 2018 Results Business Units Digital Transformation Private Label Company Structure Glossary 42

43 Ownership Structure 55.3% 50.0% 50.0% HoldCo 37.4% 4.1% 58.5% Free Float CB Founders Klein Family 34.1% 36.3% 25.5% E-commerce in França Brick and mortar stores and e- commerce 38.1% Free Float April 08, 2019 *Indirect participation of Casino through other companies. Total Casino participation in the GPA: 33.2% 43

44 GPA Overview 4Q18 and 2018 Results Business Units Digital Transformation Private Label Company Structure Glossary 44

45 Glossary Adjusted EBITDA: Measure of profitability calculated by excluding Other Operating Income and Expenses from EBITDA. Management uses this measure in its analyses as it believes it eliminates nonrecurring expenses and revenues and other nonrecurring items that could compromise the comparability and analysis of results. Business Units of the Company: The Company's business is divided into two segments - Retail and Cash & Carry (Slide 10) EBITDA: EBITDA is calculated in accordance with Instruction 527 issued by the Securities and Exchange Commission of Brazil (CVM) on October 4, Food Segment: Represents the combined results of Multivarejo and Assaí, excluding equity income (loss) from Cdiscount, which is not included in the operating segments reported by the Company. Includes retail and wholesale activities involving products in general, including - but not limited to - food products, clothing, hygiene, medicines, fuel, furniture, consumer electronics and domestic utilities. Such activities are carried out in both physical and virtual establishments. Growth and changes: The growth and changes reported in this document refer to changes from the same period last year, except when stated otherwise. Compre Bem Project: A pilot project that involves the conversion of 20 stores in order to enter a market niche currently dominated by regional supermarkets. The store model will be better adapted to the needs of consumers in the regions where the stores are located. The service and assortment of the perishables category will be strengthened, while other categories will have a leaner assortment. Compre Bem will be managed independently from the Extra Super banner, focusing on simplifying operating costs, especially in logistics and IT. Mercado Extra: Pilot project in 10 stores with the objective of revitalizing Extra Super through the enhancement of perishables and consumer services, focusing on class B and C. There will be no change in the operational model of the stores, which will continue under the Extra banner management. 45

46 Investor Relations Team Tel.: +55 (11) About GPA: GPA is Brazil s largest retailer, with a distribution network comprising over 2,000 points of sale as well as electronic channels. Established in 1948 in São Paulo, it has its head office in the city and operations in 19 Brazilian states and the Federal District. With a strategy of focusing its decisions on customers and better serving them based on their consumer profile in the wide variety of shopping experiences it offers, GPA adopts a multi-business and multi-channel platform with brick-and-mortar stores and e-commerce operations divided into three business units: Multivarejo, which operates the supermarket, hypermarket and Minimercado store formats, as well as fuel stations and drugstores under the Pão de Açúcar and Extra banners; Assaí, which operates in the cash-and-carry wholesale segment; GPA Malls, which is responsible for managing the Group's real estate assets, expansion projects and new store openings; and Via Varejo s discontinued operations, with its bricks and mortar electronics and home appliances stores under the Casas Bahia and Pontofrio banners, and the e-commerce segment. Forward-looking statements: The forward-looking statements in this presentation are based on current assumptions and projections of the Company's management, which could differ materially from actual results, performance and future events. These projections include future results that could be influenced by historical results and investments. Actual results, performance and events may differ significantly from those expressed or implied by these forward-looking statements due to a variety of factors, such as general economic conditions in Brazil and other countries, interest and exchange rate variations, future renegotiations or prepayments of liabilities or loans denominated in foreign currency, legal and regulatory changes and general competitive factors at the regional, national or global levels. 46