Jeronimo Martins — Earnings Release 2020

May 13, 2020

First Quarter 2020 Results

Lisbon, May 13, 2020

The performance analysis in this release is presented under IFRS16. The Financial Statements excluding the effect of the IFRS16 are presented in Appendix 1 of this release.

With a strong start to the year, the first quarter of 2020 was marked by a month of March that, in the context of the COVID-19 pandemic, proved the ability and commitment of our teams to respond effectively to customers' needs

• CONSOLIDATED SALES posted an 11.0% growth to €4,715 million (+12.0% at constant exchanges rates) with LFL at 9.5%. Ahead of the pandemic, YTD February LFL was +12.1%

Biedronka – sales in local currency grew 13.2%, with LFL of 11.1%

Hebe – sales in local currency increased 15.2%, with LFL at -1.7%

Pingo Doce – sales grew 3.5%, with LFL (excl. fuel) of 3.5%

Recheio – sales increased 0.2%, with LFL of 0.1%

Ara – sales in local currency grew 52.3%, with LFL of 34.3%

• GROUP EBITDA decreased 0.4% (stable at constant exchange rates) to €309 million, reflecting the initial effects of the pandemic on operating costs
• NET PROFITS declined 43.8% to €35 million (EPS of €0.06), strongly impacted by exchange rate differences accounted for under the IFRS16. Excluding Other Profits and Losses, EPS declined by 39.7%
• CASH FLOW stood at €-109 million versus €-6 million in Q1 19
• NET DEBT at €2,064 million. Excluding the capitalised operating leases, the Group ended March with a net cash position of €137 million
• Our Companies are in good shape and ready to address the challenges ahead and make the necessary adjustments to keep delivering. Nonetheless, with the lack of visibility and out of prudence, the Group rescheduled its capex programme and withdraws the GUIDANCE for the year.
• Considering the current world context and the prevailing high uncertainty, the Board of Directors decided to propose, at the AGM to be held on the 25th June the distribution, at this stage, of DIVIDENDS in the amount of €130.1 million, reviewing the €216.8 million announced on February 20, 2020. This distribution corresponds to a gross dividend of €0.207 per share

MESSAGE FROM THE CHAIRMAN AND CEO

'We ended the first quarter of the year with remarkable sales growth that reflects the competitive strength of the different businesses, as well as the flexibility and resilience of our operations, even when tested by an unprecedented threat - the COVID-19 pandemic.

PEDRO SOARES DOS SANTOS

The initial impact of the global health crisis on our companies was felt in the first half of March. The intensity of this impact depended on the evolution of the pandemic in the

countries where we operate (Portugal, Poland and Colombia) and our teams responded swiftly, with extraordinary diligence and sense of commitment.

In all geographies, our teams showed flexibility and readiness to adopt, in a rapidly-changing environment, the measures necessary to guarantee that our stores could distribute a steady flow of essential goods and respond to social emergencies.

At the moment, it is hard to predict the scale and depth of the ultimate effects of the pandemic.

In this context of high uncertainty, we will keep supporting our working community and I am sure that our teams will continue, as until now, to show their sense of mission and service towards consumers, the communities where we operate, and our supply chain partners.

This crisis finds our Group in a strong financial position, after a year of very good results. However, given the ongoing global recession, prudence advises us to reinforce our conservative capital structure management and keep the flexibility to capture potential opportunities. Therefore, the Board of Directors decided to revise the dividend amount initially proposed, reducing exceptionally the payout to 30% of consolidated profits.'

UPDATE ON COVID-19	We reacted without delay to the COVID-19 pandemic, guided by the recommendations of the World Health Organization and the Health Authorities of the three countries where we operate.
IMPACT	The existing contingency plans for each business area were immediately activated and adjusted to the scenarios that our internal risk teams ranked as being most likely in the current context. Detailed action plans have been put in place to anticipate or mitigate impacts on our operation.
	Aware of the increased responsibility for ensuring product availability in our food retail stores, we made the protection of the supply chain of essential products our key priority.
	The Group's Executive Management Team, chaired by the Chairman of the Board of Directors and Group CEO and including the Corporate Centre Directors and the Companies' CEOs, acted as a Group Crisis Committee. This group, which met formally on a weekly basis, continually monitored the economic, business and social environment. This surveillance allowed the Group to make key decisions that were appropriate to the dynamics of the pandemic and its consequences in the different geographies. Below we discuss some of the key measures adopted.
Working and Shopping safely	▪ Preventive isolation of team members who, due to their age or particular health condition, are more vulnerable to the effects of an infection; ▪ Proactive testing for COVID-19 and/or implementation of other preventive health examinations; ▪ Introduction of protective equipment: masks and visors, gloves, disinfectant gel and acrylic windows; ▪ Reinforcement of cleaning and disinfection procedures for stores, distribution centres and offices; ▪ Implementation of signage in all stores to reinforce the imperative of social distancing; ▪ Reduction of store teams and opening hours and implementation of replacement shifts in Portugal and Poland during the last two weeks of March. A favourable evolution of the pandemic and diligent work by our teams allowed schedules to be extended in April; ▪ Closure, by Pingo Doce, of its 36 restaurants and one of the two central kitchens and reduction of the take-away operation in store.
Ensuring access to food without forgetting the importance of the price factor in a more fragile socioeconomic context	▪ Maintenance of promotional campaigns, recognizing the importance of the price factor for the consumer and confirming it as central to our value proposals; ▪ Partial rationalization of the assortment to limit execution risk. The agility of our operations allowed a gradual reversal of this assortment reduction; ▪ Increased inventories of essential goods to avoid stock outs.
Cooperation with smaller suppliers to protect the continuity of their operations	▪ Close collaboration with our suppliers to anticipate any risks arising in their operations and, together, work on their mitigation; ▪ Extension of orders to small regional producers to guarantee the flow of production without reducing the purchase price to the producer, in order to protect the continuity of their businesses; ▪ Providing credit facilities, with the risk coverage of the Jerónimo Martins Group, to small and medium suppliers, so they may anticipate their receivables and avoid liquidity constraints.
Being present in the community	▪ Financial support for multiple initiatives: supply of masks and hospital equipment, development of innovative tests, food donations to hospitals, among others; ▪ Reinforcement of food donations to different institutions.
Initial impact on performance	The initial effects of the pandemic on our operations in Poland and Portugal were felt in the first two weeks of March, with sharp growth in the sales of certain categories. This stockpiling reflected consumer fear that essential products would become unavailable during the pandemic.
	In the last two weeks of March, the first measures to restrict the circulation of people were implemented in Poland and Portugal. In addition, our banners reduced store opening hours and introduced enhanced safety measures. In this context, and also as a consequence of customers stocking up on food items in the previous days, sales declined in Pingo Doce and Biedronka.

	LFL Growth
	YTD Feb	March	Q1 20
Biedronka	13.2%	7.4%	11.1%
Hebe	12.4%	-27.4%	-1.7%
Pingo Doce (Excl. Fuel)	7.0%	-2.7%	3.5%
Recheio	3.9%	-6.7%	0.1%
Ara	32.7%	37.0%	34.3%
Group LFL	12.1%	5.0%	9.5%

In April, under strict restrictions to the circulation of people and limits on the maximum number of customers per store, sales registered an increase of 6.5% (in local currency) in Biedronka and a reduction of 16.3% in Pingo Doce vs. the same month of 2019. With families set apart by lockdowns, this year Easter, very different from what was registered in April 2019, had also no significant effect in our main banners top line.

In Poland, Hebe's March sales were significantly impacted, given the more discretionary nature of its offer. In April, due to the imposed containment measures, trading remained difficult with sales materially impacted. Our health and beauty business registered a remarkable progression on its online sales that, in Q1, increased c.50% vs. the last quarter of 2019, boosted by a strong acceleration also in March.

In March, following the closure of restaurants and cafes and the absence of tourist activity, Recheio registered a substantial decrease of its sales to the HoReCa channel, which represents about 35% of the Company's turnover. The decline in sales in the last two weeks of March extended into April.

Also in Portugal, the declaration of the State of Emergency as from March 19 forced the closing of all Hussel chocolate stores and Jeronymo coffee shops.

In Colombia, the first effects of the pandemic occurred in the second half of March with the stockpiling of some basic products by the consumer.

During April, measures restricting the circulation of people were progressively introduced. These measures include variable curfew hours, in accordance with the laws of the various municipalities, and mandatory closing of stores on Saturdays and Sundays in some cities (c.30% of Ara stores were impacted). In addition to this constrained operating environment, the service levels of some suppliers of basic products deteriorated significantly. Despite a gradual recovery, the lower service level impacted sales growth, which in April was at 16.5% (in local currency).

In March, across the Group, the estimated costs incurred in the various areas to guarantee the safety and sustainability of the operation amounted to c.€15.5 million.

Given short and medium-term uncertainty about the impacts of the pandemic, the Group has suspended investment in new stores and remodelling projects. This decision will inevitably lead to delays in the investment programme for the year but does not diminish our longer-term ambitions.

All projects currently underway are being concluded and the planned strategic investments, namely in land acquisitions for future locations, will not be compromised.

OUTLOOK 2020

We will continue to closely monitor our operations in a context that is challenging and rapidly changing. Responding to this environment requires a huge level of commitment and flexibility from our teams.

The mission of guaranteeing access to high-quality, essential food products at low prices in a proximity format and in a safe shopping environment will remain the guiding thread of all our decisions.

The progression of our businesses' top line throughout the period gives an idea of the fast-changing consumer behaviour in the context of the different measures to contain the pandemic and cannot be taken as a proxy for the next months.

The information we have so far leads us to conclude that all businesses will be impacted by the pandemic. But the degree and depth of these impacts will depend on the timespan of the pandemic and the containment actions adopted by each country.

Given the current uncertainty about the evolution of the pandemic, we do not have enough information to produce a reliable estimate of the potential impact of this crisis on the year's activity. For this reason, it is prudent to withdraw the guidance communicated on February 20 at the time of FY2019 results release.

KEY PERFORMANCE FIGURES

CONSOLIDATED RESULTS

(Million Euro)	Q1 20		Q1 19		D
Net Sales and Services	4,715		4,247		11.0%
Gross Profit	1,041	22.1%	927	21.8%	12.3%
Operating Costs	-731	-15.5%	-617	-14.5%	18.6%
EBITDA	309	6.6%	310	7.3%	-0.4%
EBITDA (adjusted *)	325	6.9%	310	7.3%	4.6%
Depreciation	-183	-3.9%	-174	-4.1%	4.8%
EBIT	127	2.7%	136	3.2%	-7.0%
Net Financial Costs	-63	-1.3%	-40	-0.9%	55.4%
Gains in Joint Ventures and Associates	0	0.0%	0	0.0%	n.a.
Other Profits/Losses	-5	-0.1%	-1	0.0%	n.a.
EBT	59	1.3%	95	2.2%	-37.5%
Income Tax	-22	-0.5%	-28	-0.7%	-21.3%
Net Profit	37	0.8%	67	1.6%	-44.2%
Non-Controlling Interests	-2	-0.1%	-5	-0.1%	-49.2%
Net Profit Attributable to JM	35	0.7%	62	1.5%	-43.8%
EPS (€)	0.06		0.10		-43.8%
EPS without Other Profits/Losses (€)	0.06		0.10		-39.7%

* EBITDA adjusted from the costs related to COVID-19

BALANCE SHEET

(Million Euro)	Q1 20	2019	Q1 19
Net Goodwill	621	641	638
Net Fixed Assets	3,900	4,140	3,855
Net Rights of Use (RoU)	2,126	2,318	2,370
Total Working Capital	-2,493	-2,793	-2,400
Others	104	94	71
Invested Capital	4,257	4,400	4,534
Total Borrowings	686	732	723
Financial Leases	14	17	15
Capitalised Operating Leases	2,201	2,368	2,370
Accrued Interest	-21	3	5
Cash and Cash Equivalents	-817	-949	-647
Net Debt 1	2,064	2,172	2,466
Non-Controlling Interests	241	254	228
Share Capital	629	629	629
Reserves and Retained Earnings	1,323	1,346	1,211
Shareholders Funds	2,193	2,229	2,068

Net Debt amount was restated in 2019. Cash and Cash Equivalents considered in Total Working Capital was restated to Cash and Cash Equivalents heading.

CASH FLOW

(Million Euro)	Q1 20	Q1 19
EBITDA	309	310
Capitalised Operating Leases Payment	-69	-65
Interest Payment	-37	-38
Income Tax	-32	-28
Funds From Operations	171	180
Capex Payment	-186	-146
Change in Working Capital	-91	-39
Others	-3	0
Cash Flow	-109	-6

SALES PERFORMANCE

The Group sales were €4,715 mn, 11.0% above Q1 19 (+12.0% at constant exchange rates), with LFL of 9.5%.

All of the Group's banners started 2020 with differentiating value proposals and enjoying strong sales momentum. The good performance registered in these three months reflects strong growth in January and February, to which was added another day of sales for the leap year, and a deceleration in March with the containment measures impacting the last weeks of the month.

In Poland, consumption at the beginning of the year remained at healthy levels and food inflation in the country was 7.7% in the quarter. During the period, with the Sunday ban regulation, there were three fewer trading days than in Q1 19.

In this context, Biedronka registered sales growth of 12.6% to €3.3 bn (+13.2% in local currency) with good market share progression.

LFL growth was 11.1%, including a relatively stable basket inflation across the quarter that was at an average of 4.9% in the period.

Hebe grew sales by 14.6% to reach €64 mn (+15.2% in local currency), impacted by the performance in March in the context of the pandemic. The e-commerce operation grew c.50% in Q1 20 vs. the last quarter on 2019, boosted by a strong acceleration also in March.

In Portugal, the year started with positive consumer demand evolving to the first signs of trading down as March progressed. Food inflation was 0.9% in the period.

Pingo Doce increased sales by 3.5% to €936 mn, including LFL (excl. fuel) of 3.5%.

Recheio registered sales of €214 mn, a 0.2% growth on Q1 19 with LFL of 0.1%. The closure of the restaurants and the lack of tourism activity had a material impact on sales to the HoReCa channel in the last weeks of March.

In Colombia, the year began with a favourable economic environment and the containment measures in the context of the pandemic only gained strength throughout April.

Ara increased sales in local currency by 52.3%, including a LFL of 34.3%. In euros, sales grew 38.9% to reach €235 mn, driven by the reinforced price strategy that the Company implemented in 2019 and which continues to be fundamental to its performance.

RESULTS PERFORMANCE

The Group's EBITDA reached €309 mn, 0.4% below Q1 19. At constant exchange rates, EBITDA was in line with the previous year. The respective margin was 6.6% (7.3% in Q1 19).

The costs incurred in the last two weeks of March to allow the banners to operate safely are estimated in c.€15.5 mn euros.

Excluding this effect, EBITDA would have grown 4.6% with a margin of 6.9% in the quarter.

It is also worth mentioning, in terms of the Group's EBITDA, that in the context of its vision on corporate responsibility, Jerónimo Martins launched, in Poland, in this first quarter of the year, a Foundation with the purpose of developing support programmes for the elder population groups in a vulnerable situation. The contribution, which is expected to be annual, was c.€11 million.

This performance reflects the strength of the various banners and also the agility and determination with which they overcame the challenges imposed to guarantee the continuity of operations in very uncertain scenarios.

Biedronka recorded an EBITDA of €277 mn, an increase of 6.5% (+7.1% at constant exchange rate) in a quarter when the wage upward review was carried out, as planned.

The reduction in the EBITDA margin reflects mainly the impact of the COVID-19 pandemic on the operation costs.

The banner remained focused in offering, on proximity, a quality assortment at low prices and in maintaining a good promotional dynamic, having

been the Group's most resilient business in the current context.

Distribution in Portugal recorded an EBITDA of €62 mn, 8.4% below Q1 19. The respective margin was 5.4% versus 6.1% in Q1 19. This margin performance reflects the increase in costs required to manage the impact of the pandemic, and also some additional pressure from increases in wages, implemented in early 2020.

Hebe's EBITDA amounted to €1 mn in a quarter in which the mix is not particularly favourable on the average for the year. The effects of a negative sales performance in March in the context of the public health crisis also added pressure on the Company's operating performance.

In a quarter of strong performance, Ara delivered an EBITDA of €-3.5 mn, a reduction of losses of 70.2% in relation to Q1 19 (In local currency this reduction was 67.4%). The increase in sales density registered in these first three months of the year was paramount for this good performance.

Net financial costs were €63 mn versus €40 mn in Q1 19, impacted by the recognition of exchange translation losses in the amount of €24 mn in Q1 20, mostly related to value adjustments in the capitalization¹ of operating leases in Poland denominated in euros. Within financial costs, net interest on debt issued (excluding operating leases) was €5 mn, in line with the previous year.

Other profits and losses were €-5 mn, reflecting restructuring costs and write-offs related to store closures.

¹ In the context of the IFRS16 adoption, the capitalized rents, related to lease contracts denominated in euros in Poland, are recognized as liabilities, translated at the exchange rate prevailing at the yearend reporting date (31 December 2019). According to this standard, the changes resulting from the difference in the exchange rate of each period have to be booked as financial costs/profits (Exchange differences in liabilities with leases), representing an accounting adjustment without impact on cash flow.

The Group's capex (excluding rights of use acquired in accordance with IFRS16) was €90 mn, of which about 25% is related to the acquisition of the current headquarters building where the main offices in Portugal are located. The remainder was allocated to the three countries in which we operate, with Poland investing c.49% of this amount.

Cash flow generated in the period was €-109 mn. The increase in capex payments is related to investments made in Q4 19, which resulted in an increase in accounts payable related to capital expenditure at the year end.

The net cash position, excluding capitalized operating leases, was €137 mn.

DIVIDEND PROPOSAL

The Board of Directors of Jerónimo Martins commends the resilience and the response capacity showed by the Group's banners in an adverse context, marked by high uncertainty and rapid changes. At the same time, it recognizes that there is not enough information at present to identify and rigorously assess all factors with a potential impact on the Group's activity in the near future.

Therefore, in line with the conservative balance sheet management that has characterised the company, the Board of Directors decided to adopt a prudent approach that does not compromise our ability to take advantage of good opportunities, should they arise. In this context, it will propose to the AGM to be held on June 25, 2020 that the dividend distribution regarding 2019 results follows a payout of 30%, instead of the 50% previously announced, to be applied to the 2019 net consolidated results (excluding IFRS16).

This proposal represents a distribution of €130.1 mn, corresponding to a gross dividend of €0.207 per share (excluding the 859,000 own shares in the portfolio).

The Board of Directors does not exclude the possibility of proposing the distribution, until the end of the year and based on the free reserves of the Company, of the remaining value to the 50% payout initially foreseen if the economic impact of the pandemic allows it.

+351 21 752 61 05 investor.relations@jeronimo-martins.com Cláudia Falcão claudia.falcao@jeronimo-martins.com Hugo Fernandes hugo.fernandes@jeronimo-martins.com

FINANCIAL CALENDAR

General Shareholders Meeting: 25 June 2020

H1 2020 Results: 29 July 2020 (after the market close)

9M 2020 Results: 28 October 2020 (after the market close)

DISCLAIMER

Statements in this release that are forward-looking are based on current expectations of future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties relate to factors that are beyond Jerónimo Martins' ability to control or estimate precisely, such as general economic conditions, credit markets, foreign exchange fluctuations, and regulatory developments.

Except as required by any applicable law or regulation, Jerónimo Martins assumes no obligation to update the information contained in this release or to notify a reader in the event that any matter stated herein changes or becomes inaccurate.

APPENDIX

1. Financial Statements

INCOME STATEMENT BY FUNCTIONS

	IFRS16		Excl. IFRS16
(Million Euro)	Q1 20	Q1 19	Q1 20	Q1 19
Net Sales and Services	4,715	4,247	4,715	4,247
Cost of Sales	-3,675	-3,320	-3,675	-3,320
Gross Profit	1,041	927	1,041	927
Distribution Costs	-821	-721	-842	-740
Administrative Costs	-94	-70	-94	-70
Other Operating Profits/Losses	-5	-1	-5	-1
Operating Profit	122	135	100	116
Net Financial Costs	-63	-40	-9	-8
Gains in Joint Ventures and Associates	0	0	0	0
Profit Before Taxes	59	95	91	108
Income Tax	-22	-28	-27	-30
Profit Before Non Controlling Interests	37	67	64	78
Non-Controlling Interests	-2	-5	-3	-6
Net Profit Attributable to JM	35	62	61	72

INCOME STATEMENT (Management View)

	(Excl. IFRS16)
(Million Euro)	Q1 20		Q1 19		D
Net Sales and Services	4,715		4,247		11.0%
Gross Profit	1,041	22.1%	927	21.8%	12.3%
Operating Costs		-832 -17.7%		-713 -16.8%	16.7%
EBITDA	208	4.4%	214	5.0%	-2.7%
EBITDA (adjusted *)	224	4.7%	214	5.0%	4.6%
Depreciation	-104	-2.2%	-97	-2.3%	6.9%
EBIT	105	2.2%	117	2.8%	-10.6%
Net Financial Costs	-9	-0.2%	-8	-0.2%	17.8%
Gains in Joint Ventures and Associates	0	0.0%	0	0.0%	n.a.
Other Profits/Losses	-5	-0.1%	-1	0.0%	n.a.
EBT	91	1.9%	108	2.5%	-16.1%
Income Tax	-27	-0.6%	-30	-0.7%	-10.2%
Net Profit	64	1.3%	78	1.8%	-18.4%
Non-Controlling Interests	-3	-0.1%	-6	-0.1%	-45.7%
Net Profit Attributable to JM	61	1.3%	72	1.7%	-16.3%
EPS (€)	0.10		0.12		-16.3%
EPS without Other Profits/Losses (€)	0.10		0.12		-12.9%

* EBITDA adjusted from the costs related to COVID-19

BALANCE SHEET

	(Excl. IFRS16)
(Million Euro)	Q1 20	2019	Q1 19
Net Goodwill	621	641	638
Net Fixed Assets	3,900	4,140	3,855
Total Working Capital	-2,487	-2,788	-2,386
Others	91	86	69
Invested Capital	2,124	2,079	2,175
Total Borrowings	686	732	723
Financial Leases	14	17	15
Accrued Interest	-21	3	5
Cash and Cash Equivalents	-817	-949	-647
Net Debt 1	-137	-196	96
Non-Controlling Interests	245	257	229
Share Capital	629	629	629
Reserves and Retained Earnings	1,387	1,389	1,221
Shareholders Funds	2,261	2,275	2,079

1 Net Debt amount was restated in 2019.

Cash and Cash Equivalents considered in Total Working Capital was restated to Cash and Cash Equivalents heading.

CASH FLOW

	(Excl. IFRS16)
(Million Euro)	Q1 20	Q1 19
EBITDA	208	214
Interest Payment	-5	-5
Income Tax	-32	-28
Funds From Operations	171	180
Capex Payment	-186	-146
Change in Working Capital	-92	-40
Others	-3	0
Cash Flow	-109	-6

EBITDA BREAKDOWN

	IFRS16			Excl. IFRS16
(Million Euro)	Q1 20	Mg	Q1 19	Mg	Q1 20	Mg	Q1 19	Mg
Biedronka	277	8.5%	260	9.0%	208	6.4%	195	6.7%
Distribution Portugal	62	5.4%	68	6.1%	45	3.9%	51	4.5%
Others & Cons. Adjustments	-30	n.a.	-18	n.a.	-45	n.a.	-32	n.a.
JM Consolidated	309	6.6%	310	7.3%	208	4.4%	214	5.0%
JM Consolidated (adjusted *)	325	6.9%	310	7.3%	224	4.7%	214	5.0%

* EBITDA adjusted from the costs related to COVID-19

FINANCIAL RESULTS

	IFRS16		Excl. IFRS16
(Million Euro)	Q1 20	Q1 19	Q1 20	Q1 19
Net Interest	-5	-5	-5	-5
Interests on Capitalised Operating Leases	-32	-33	-	-
Exchange Differences	-24	-1	-2	-1
Others	-2	-1	-2	-1
Financial Results	-63	-40	-9	-8

SALES BREAKDOWN

(Million Euro)	Q1 20		Q1 19		D %
		% total		% total	excl. FX	Euro
Biedronka	3,262	69.2%	2,897	68.2%	13.2%	12.6%
Pingo Doce	936	19.9%	905	21.3%		3.5%
Recheio	214	4.5%	214	5.0%		0.2%
Ara	235	5.0%	169	4.0%	52.3%	38.9%
Hebe	64	1.4%	56	1.3%	15.2%	14.6%
Others & Cons. Adjustments	3	0.1%	6	0.1%		-40.5%
Total JM	4,715	100%	4,247	100%	12.0%	11.0%

SALES GROWTH

	Total Sales Growth	LFL Growth
	Q1 20	Q1 20
Biedronka
Euro	12.6%
PLN	13.2%	11.1%
Hebe
Euro	14.6%
PLN	15.2%	-1.7%
Pingo Doce	3.5%	2.8%
Excl. Fuel	4.3%	3.5%
Recheio	0.2%	0.1%
Ara
Euro	38.9%
COP	52.3%	34.3%

STORE NETWORK

Number of Stores	2019	Openings	Closings	Q1 20	Q1 19
		Q1 20	Q1 20
Biedronka	3,002	11	3	3,010	2,902
Hebe *	273	8	0	281	238
Pingo Doce	441	1	0	442	434
Recheio	42	0	0	42	42
Ara	616	19	7	628	541

* Q1 20: 281 stores: 28 pharmacies and 253 drugstores (21 of which include a pharmacy)

Sales Area (sqm)	2019	Openings Q1 20	Closings Remodellings Q1 20	Q1 20	Q1 19
Biedronka	2,021,345	8,394	-858	2,030,596	1,937,731
Hebe	66,805	2,109	0	68,914	57,035
Pingo Doce	513,272	102	0	513,374	508,212
Recheio	133,826	0	0	133,826	133,826
Ara	207,982	6,235	2,691	211,526	184,508

CAPEX

(Million Euro)	Q1 20	Weight	Q1 19	Weight
Biedronka	34	37%	43	46%
Distribution Portugal	25	28%	24	26%
Ara	7	7%	20	21%
Others	25	28%	7	8%
Total CAPEX	90	100%	95	100%

1. Notes Like For Like (LFL) sales: sales made by stores that operated under the same conditions in the two periods. Excludes stores opened or closed in one of the two periods. Sales of stores that underwent profound remodelling are excluded for the remodelling period (store closure).

3. Reconciliation INCOME SATEMENT

Notes

	Following ESMA guidelines on Alternative Performance Measures from October 2015
Income Statement	Consolidated Income Statement by Functions
(Management View)	(in Consolidated Financial Statements)
in this release	First Quarter 2020 Results
Net Sales and Services	Net sales and services
Gross Profit	Gross profit
Operating Costs	Includes headings of Distribution costs; Administrative costs; Other operating costs, excluding the amount of €-182.7 mn related to Depreciations
EBITDA
Depreciation	Value reflected in the note – Segments Reporting.
EBIT
Net Financial Costs	Net financial costs
Gains in Joint Ventures and Associates	Gains (losses) in joint ventures and associates
Other Profits/Losses	Includes headings of Other operating profits/losses; Gains in disposal of business (when applicable) and Gains (losses) in other investments (when applicable)
EBT
Income Tax	Income tax
Net Profit
Non-Controlling Interests	Non-Controlling interests

Net Profit Attributable to JM

BALANCE SHEET

Balance Sheet in this release	Consolidated Balance Sheet (in Consolidated Financial Statements) First Quarter 2020 Results
Net Goodwill	Amount reflected in the heading of Intangible assets
Net Fixed Assets	Includes the headings Tangible and Intangible assets excluding the Net goodwill (€620.7 mn) and Financial leases (€15.2 mn)
Net Rights of Use (RoU)	Includes the heading of Net rights of use excluding the Financial leases (€15.2 mn)
Total Working Capital	Includes the headings Current trade debtors, Accrued income and Deferred costs; Inventories; Biological assets; Trade creditors, Accrued costs and Deferred income; Employee benefits; and also, the value of €-11.6 mn related to 'Others' due to its operational nature. Excludes the value of €-2.3 mn related to Interest accruals and deferrals (note - Net financial debt)
Others	Includes the headings Investment property; Investments in joint ventures and associates; Other financial investments; Non-Current trade debtors, Accrued income and Deferred costs; Deferred tax assets and liabilities; Income tax receivable and payable; and Provisions for risks and contingencies. Excludes the value of €-11.6 mn related to 'Others' due to its operational nature
Invested Capital
Total Borrowings	Includes the heading Borrowings current and non-current
Financial Leases	Value reflected in the headings of Lease liabilities current and non-current
Capitalised Operating Leases	Including the headings of Lease liabilities current and non current deducted of liabilities with Financial leases (€14.4 mn)
Accrued Interest	Includes the heading Derivative financial instruments and the value of €-2.3 mn related to Interest accruals and deferrals (value reflected in note – Net financial debt)
Cash and Cash Equivalents	Includes the heading Cash and cash equivalents
Net Debt
Non-Controlling Interests	Non-Controlling interests
Share Capital	Share capital
Reserves and Retained Earnings	Includes the heading Share premium, Own shares, Other reserves and Retained earnings

CASH FLOW

Cash Flow in this release	Following ESMA guidelines on Alternative Performance Measures from October 2015 Consolidated Cash Flow Statement (in Consolidated Financial Statements)
	First Quarter 2020 Results
EBITDA	Included in the heading of Cash generated from operations
Capitalised Operating Leases Payment	Included in the heading Leases paid
Interest Payment	Includes the headings of Loans interest paid, Leases interest paid and Interest received
Income Tax	Income tax paid
Funds from Operations
Capex Payment	Includes the headings Disposal of tangible and intangible assets; Disposal of financial and investment property; Acquisition of tangible and intangible assets; Acquisition of financial investments and investment property. It also includes acquisitions of tangible assets classified as finance leases under previous regulations (€0.0 mn)
Change in Working Capital	Included in the heading of Cash generated from operations
Others	Includes the headings disposal of business (when applicable), being the remaining amount included in the heading Cash generated from operations
Cash Flow