Jeronimo Martins — Earnings Release 2022

Jan 12, 2023

RELEASE

PRELIMINARY SALES

FINANCIAL CALENDAR 2023

FY 2022 Results: 15 March General Shareholders Meeting: 20 April Q1 Results: 26 April H1 Results: 26 July 9M Results: 25 October (All releases will be published after the closing of the market)

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12 January 2023 | 1

Jerónimo Martins, SGPS, S.A. | Head office: Rua Actor António Silva, n. º7, 1649-033 Lisbon

Share Capital: Euro 629,293,220.00 | Registered at the C.R.C. of Lisbon and Tax Number: 500 100 144

www.jeronimomartins.com

Good sales performance in the last quarter of the year confirms consumers' recognition of the continued investment in price and of the savings opportunities created in the three countries where we operate. This reinforced confidence is particularly relevant in a context of high inflation and of families' lower purchasing power.

(€ Million)	2022	% (Euros)	% (w/o FX)	LFL	Q4 22	% (Euros)	% (w/o FX)	LFL
Net Sales	25,385	21.5%	23.9%	19.6%	6,992	23.0%	26.0%	21.4%
Biedronka	17,582	20.9%	24.1%	20.6%	4,856	24.1%	27.1%	23.4%
Hebe	358	28.7%	32.2%	24.8%	106	25.9%	29.0%	21.2%
Pingo Doce	4,499	11.2%	-	9.4%*	1,240	13.7%	-	12.4%*
Recheio	1,158	27.7%	-	27.3%	308	25.0%	-	23.1%
Ara	1,768	60.5%	62.1%	35.7%	477	38.5%	53.2%	25.5%
Others	20	-	-	-	6	-	-	-
(*excluding fuel)

MESSAGE FROM THE CHAIRMAN AND CEO - PEDRO SOARES DOS SANTOS

'2022 will stay in our collective memory as the year of the invasion of Ukraine by the Russian Federation and the consequent war that is ravaging the territory for almost one year.

The conflict intensified the pressure over supply chains and the trend of increasing prices that had been registered since the second half of 2021.

As such, 2022 was another year of hard work for our banners that were able to overcome the difficulties of a highly volatile context made even more challenging by mounting inflation and hikes in interest rates. From the end of 2021, the teams focused on reinforcing competitiveness, containing price increases on their stores' shelves, while continuing to invest in the overall quality of the respective value propositions.

In Poland, Biedronka reinforced its price leadership, leveraging on its strength to create relevant savings opportunities throughout the year. It deserves a special note the immediate, assertive and generous way in which our teams responded to the need to support the large number of Ukrainian refugees who entered the country. This support being guaranteed either through direct contributions or through joint work with non-governmental organizations active on the ground.

In Portugal, the determination and dynamics of Pingo Doce and Recheio allowed both Companies to successfully consolidate the recovery from the severe impacts of the restrictions imposed to manage the pandemic in the previous two years.

In Colombia, the focus on growth led Ara to reinforce its price positioning, the investment in quality and differentiation of the offer and to accelerate store openings. The banner inaugurated the symbolic 1,000 store in the last quarter of the year.

I publicly thank our people for their dedication and commitment. Having once again worked in demanding and unpredictable operating environments, they are the driving force behind the Group's solid performance. In recognition of this effort and given the fast increase in the cost of living, we exceptionally awarded c.45 million euros in bonuses to our operational teams, of which c.23 million in the last quarter of 2022.

Not ignoring inflation, it is with great satisfaction I note that the Group surpassed the 25 billion euros sales milestone in the year when Jerónimo Martins celebrated 230 years in business. We know that this long and successful history is the result of many generations' ability to balance short-term delivery with long-term growth vision. A vision evermore based on the strong commitment of our businesses to their economic, social and environmental sustainability, and on our firm purpose in contributing to the prosperity of the societies of which we are part and to the preservation of the planet that is Humankind's common home.'

SALES PERFORMANCE

Group sales grew by 21.5% (+23.9% at constant exchange rates) to reach 25.4 billion euros, with all banners' solid performance driving Group's LFL to 19.6%.

In Q4, sales increased by 23.0% (+26.0% at constant exchange rates) to 7.0 billion euros with a LFL of 21.4%.

Throughout the year, rising food inflation was also a factor of the performance.

POLAND

In Poland, despite a progressively more cautious consumer behaviour, due to the pressure from generalised price increases, food consumption grew above the respective inflation rate of c.15.4% (c.21.9% in Q4).

To this resilience also contributed the number of Ukrainian refugees who remained in Poland in the context of the war and the measures implemented by the Polish government to mitigate the effects, on consumption, of the rise in food and energy prices and of the increase in interest rates.

Determined to reinforce its market leadership, Biedronka remained consistently focused on containing the impact of inflation over the families' budget. Its price competitiveness and ongoing investment in the quality of its offer and store network, ensured the banner the preference of consumers throughout the year.

In 2022, sales, in local currency, grew by 24.1%, including a LFL of 20.6%. In euros, sales reached 17.6 billion, up 20.9% on 2021.

In Q4, sales, in local currency, grew 27.1%, with LFL at 23.4%. In euros, sales were 4.9 billion, 24.1% above Q4 21.

The performance registered throughout the year also incorporates the inevitable inflation in the basket resulting from increases in purchase prices paid to suppliers. Even so, the progression of prices in the banner was significantly below the one seen in the market.

To continue capturing the growth opportunities identified and improving the quality of its market presence, the chain opened 157 new locations (145 net additions), above the target initially set for the year, and refurbished a total of 367 stores over the period.

Hebe further reinforced its value proposition and recorded strong sales growth that also benefited from the previous year low base, still impacted by restrictions related to the pandemic. The banner posted a solid performance in the online channel which represented c.14% of total sales in the year.

Local currency sales grew by 32.2% with a LFL of 24.8% (LFL includes online sales).

In Q4, against a tough comparison base on the previous year, the banner's sales grew by 29.0% in local currency, with a LFL of 21.2%.

In euros, sales reached 358 million, 28.7% above 2021. In Q4, sales were 106 million, 25.9% above Q4 21.

Our health & beauty company continued selectively expanding its store network in Poland and opened 30 new locations in the year (24 net additions), to end the period with 315 stores.

At the end of the year and following a trial period, Hebe opened its online presence in Czechia and Slovakia.

PORTUGAL

In Portugal, the generalised rise in prices that led food inflation to reach 13.0% (19.5% in Q4) put pressure on families' disposable income and drove negative volumes in food consumption and a strong trading down trend. On the other hand, the recovery of tourism benefited the HoReCa channel.

Pingo Doce reinforced price positioning and kept the intensity of its promotional dynamic at the centre of its strategy to mitigate the impact of inflation on its consumers. The consistency of this focus led to resilient sales growth that incorporated, on one hand, higher basket inflation and, on the other, increasing pressure from trading down.

In the year, sales reached 4.5 billion euros, 11.2% ahead of 2021, with LFL (excluding fuel) at 9.4%.

In Q4, the banner launched an assertive campaign to fight inflation named 'Essentials at 2021 Prices', the sales having reached 1.2 billion euros, +13.7% than in Q4 21, with LFL (excluding fuel) at 12.4%.

In the 12 months period, Pingo Doce opened 10 new stores (seven net additions) and refurbished 37 locations.

Recheio reinforced the competitiveness of its positioning and benefited from the strong recovery of the HoReCa channel that accompanied the increase in touristic activity in Portugal in relation to a period, in 2021, still impacted by the pandemic.

In the year in which it celebrated 50 years of activity, Recheio's sales reached 1.2 billion euros, 27.7% above the previous year, with a LFL of 27.3%.

In Q4, our wholesale banner increased sales by 25.0% to 308 million euros, including a LFL of 23.1%.

In September, Recheio inaugurated a store in Cascais, with a renewed model focused on serving the HoReCa channel.

COLOMBIA

In Colombia food inflation of 25.0% in the year (27.3% in Q4) pressured consumption and led to declining volumes and a significant trade down in the market.

3.7% 22.8% 39.5% 31.5% 39.5% 48.9% 33.6% 25.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ara LFL 2021 2022

Ara consistently invested to reinforce its low-price positioning and its promotional dynamics, guaranteeing consumers' preference in a context of pressure over the families' disposable income. The strong LFL growth was combined with a relevant contribution from store expansion.

For the year, Ara sales grew by 62.1% in local currency, including a LFL of 35.7%.

In Q4, facing a difficult comparative and with a very fragile consumer, Ara increased sales, in local currency, by 53.2%, with a LFL of 25.5%.

In euros, sales reached 1.8 billion for the year, 60.5% up on 2021. In Q4, they stood at 477 million, 38.5% above Q4 21.

Alongside the focus on LFL growth, the banner also worked to fasten its pace of expansion and opened 275 stores, of which 189 in Q4. Surpassing its already ambitious plan, Ara ended the year with a total of 1,093 locations.

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 can cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties, which have increased as a result of the Covid-19 pandemic and more recently due to the war in Ukraine, relate to factors that are beyond Jerónimo Martins' ability to control or estimate precisely and include but are not limited to general economic conditions, actions taken by governmental authorities to address Covid-19 effects and their impacts over the economy, competition, industry trends, credit markets, foreign exchange fluctuations, and regulatory developments.

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

APPENDIX

SALES BREAKDOWN

(€ Million)	2022		2021		 %		Q4 22		Q4 21		 %
		% total		% total	excl. FX	Euro		% total		% total	excl. FX	Euro
Biedronka	17,582	69.3%	14,542	69.6%	24.1%	20.9%	4,856	69.5%	3,912	68.8%	27.1%	24.1%
Hebe	358	1.4%	278	1.3%	32.2%	28.7%	106	1.5%	8 4	1.5%	29.0%	25.9%
Pingo Doce	4,499	17.7%	4,046	19.4%		11.2%	1,240	17.7%	1,090	19.2%		13.7%
Recheio	1,158	4.6%	906	4.3%		27.7%	308	4.4%	247	4.3%		25.0%
Ara	1,768	7.0%	1,102	5.3%	62.1%	60.5%	477	6.8%	344	6.1%	53.2%	38.5%
Others & Cons. Adjustments	2 0	0.1%	1 4	0.1%		40.4%	6	0.1%	6	0.1%		1.7%
Total JM	25,385	100%	20,889	100%	23.9%	21.5%	6,992	100%	5,683	100%	26.0%	23.0%

SALES GROWTH

	Total Sales Growth						LFL Growth
	Q1 22	Q2 22	H1 22	Q3 22	9M 22	Q4 22	2022	Q1 22	Q2 22	H1 22	Q3 22	9M 22	Q4 22	2022
Biedronka
Euro	13.4%	23.7%	18.7%	21.6%	19.7%	24.1%	20.9%
PLN	15.4%	26.9%	21.3%	26.4%	23.0%	27.1%	24.1%	12.2%	22.5%	17.5%	23.3%	19.5%	23.4%	20.6%
Hebe
Euro	25.9%	36.9%	31.8%	26.7%	29.9%	25.9%	28.7%
PLN	28.0%	40.4%	34.7%	31.6%	33.6%	29.0%	32.2%	20.8%	32.2%	26.9%	25.7%	26.4%	21.2%	24.8%
Pingo Doce	6.0%	10.9%	8.5%	13.4%	10.3%	13.7%	11.2%	4.7%	9.9%	7.4%	11.7%	8.9%	12.3%	9.8%
Excl. Fuel	4.8%	10.3%	7.7%	13.5%	9.7%	13.9%	10.8%	3.5%	9.3%	6.5%	11.7%	8.3%	12.4%	9.4%
Recheio	31.6%	26.8%	28.9%	28.6%	28.8%	25.0%	27.7%	32.1%	27.0%	29.3%	28.3%	28.9%	23.1%	27.3%
Ara
Euro	61.3%	86.8%	74.1%	64.4%	70.4%	38.5%	60.5%
COP	65.0%	74.9%	70.1%	60.0%	66.2%	53.2%	62.1%	39.5%	48.9%	44.3%	33.6%	40.2%	25.5%	35.7%
Total JM
Euro	15.2%	24.5%	20.0%	22.7%	21.0%	23.0%	21.5%
Excl. FX	16.8%	26.2%	21.7%	25.8%	23.1%	26.0%	23.9%	13.0%	21.6%	17.5%	21.9%	19.0%	21.4%	19.6%

STORE NETWORK

Number of Stores	2021		Openings	Closings
		Q1 22	Q2 22	Q3 22	Q4 22	2022	2022
Biedronka *	3,250	1 6	2 4	2 5	9 2	1 2	3,395
Hebe	291	3	5	5	1 7	6	315
Pingo Doce	465	2	1	4	3	3	472
Recheio	4 2	0	0	1	0	0	4 3
Ara	819	1 4	4 3	2 9	189	1	1,093

Sales Area (sqm)	2021	Q1 22	Openings Q2 22	Closings/ Remodellings 2022	2022
Biedronka *	2,241,562	11,030	17,120	Q3 22 16,729	Q4 22 64,062	-23,127	2,373,630
Hebe	75,164	760	1,193	1,197	4,293	1,539	81,068
Pingo Doce	535,847	2,093	1,000	6,376	1,548	-4,386	551,250
Recheio	134,321	0	0	5,060	0	0	139,381
Ara	278,547	4,622	15,535	11,471	66,589	522	376,242

* Excluding the stores and selling area related to 15 Micro Fulfilment Centres (MFC) to supply Biek's operation (ultra-fast delivery)

Like For Like (LFL) sales: sales made by stores and e-commerce platforms 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). Notes