Jeronimo Martins — Interim / Quarterly Report 2020

Oct 28, 2020

Nine Months 2020 Results

Lisbon, 28 October 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.

Sales and results increased in the third quarter. Biedronka maintained solid sales and EBITDA growth during this period. Performance in Portugal improved, despite the restrictions imposed on the retail sector and the decline in tourism activity. Ara was strongly impacted by continued confinement measures in Colombia.

• CONSOLIDATED SALES increased 3.9% to €14.2 bn (+6.6% at constant exchange rates) with LFL at 3.5%. In Q3, sales grew 2.7% to €4.9 bn (+5.4% at constant exchange rates) with LFL at 2.2%.

Biedronka – sales in local currency increased 10.3% (+9.3% in Q3), with LFL at 7.2% (+6.0% in Q3)

Hebe - sales in local currency increased 3.0% (+6.4% in Q3), with LFL at -9.4% (+1.7% in Q3)

Pingo Doce – sales decreased 2.3% (-1.2% in Q3), with LFL (excl. fuel) of -2.3% (-1.5% in Q3)

Recheio – sales declined 15.6% (-17.5% in Q3), with LFL of -15.7% (-17.7% in Q3)

Ara – sales in local currency grew 25.1% (+10.9% in Q3), with LFL of 9.8% (-1.7% in Q3)

• GROUP EBITDA in 9M 20 decreased 1.9% (+0.3% at constant exchange rates) to €1,029 mn. In Q3, EBITDA increased 3.3% to €395 mn.
• NET PROFIT declined 17.8% to €219 mn (EPS of €0.35). Excluding Other Profits and Losses, EPS declined 13.2%.
• CASH FLOW amounted to €205 mn versus €356 mn in 9M 19.
• NET DEBT stood at €1,894 mn. Excluding the capitalised operating leases, the Group ended September with a net cash position of €311 mn.
• The Board of Directors will propose in an Extraordinary General Meeting, scheduled for November 26, the PAYMENT of €86.7 mn from the Company FREE RESERVES. Added to the €130.1 mn dividend payment in July, this will equate to a 50% payout from the 2019 results, in line with the Group's dividend policy.

MESSAGE FROM THE CHAIRMAN AND CEO	'Six of the first nine months of 2020 were marked by the effects of the COVID-19 pandemic. During this period, the determination of our teams and the flexibility of our operations allowed us to be agile and creative. We adapted the value proposals of our banners to complex market conditions, reinforcing their assertiveness and relevance to the consumer.
PEDRO SOARES DOS SANTOS	The strength of our balance sheet has allowed us not to lose sight of the long-term perspective and to remain unwavering in our commitment to our strategic priorities.

Despite the tough times we live in, I believe that today we are better prepared than six months ago to deal with the demands of the reality of each market and to continue to grow in a sustainable way.

I am aware that uncertainty remains very high. The Christmas season, traditionally so important for food retail, may be impacted by restrictions on mobility and lack of confidence of a more price-sensitive consumer, due to the unique moment that is experienced worldwide.

In the early days of the pandemic, in response to the uncertainty about the impact of the health crisis, the payout ratio of the 2019 results was exceptionally reduced to 30% from the 50% initially announced. At this stage, our Companies have proven their resilience and determination. As such, and taking into consideration the strength of the Group's performance in these adverse times, our current cash position and the level of financial flexibility necessary for the future, the Board of Directors will propose to the Company's shareholders the payment of remaining amount to the 50% payout, in line with JM's dividend policy.'

Q3 2020 UPDATE ON COVID-19 IMPACT

Since the beginning of March, the Group's Executive Team, in close coordination with the Executive Teams of each Company, has provided ongoing support to the operations. This highly efficient decision-making process allowed us to rapidly adapt short-term action plans in response to the evolution of the pandemic.

Our three priorities have remained unchanged since the beginning of the health crisis. First, the safety of our teams and of the consumers who visit us. Second, the stability of the supply chain, including the support of the most fragile suppliers and producers. Third, the ability to offer good quality products at low prices.

In consolidated terms, there was an increase of €32 mn in the 9M in operating costs related to: i) extraordinary bonus to the operational teams, ii) expenses with individual and collective protective equipments and supplies and iii) finance of multiple initiatives of social support in the three countries. This support includes direct community aid and contributions to scientific efforts to stop the pandemic and deal with its effects. Provisions for trade receivables, included in Other Profits and Losses, increased by €3 mn due to the rise in credit risk associated with the pandemic.

All Group Companies implemented a rigorous review of existing processes that successfully mitigated the impact of these extra costs on profitability.

In each country, measures deemed necessary by the respective governments and health authorities were adopted. In addition, our banners prepared specific responses appropriate to the different geographies.

In Poland, measures to restrict the circulation of people were gradually lifted during Q2. From June to the end of September there were no specific containment measures applied to the food retail sector. However, there was less store traffic than usual because people worked from home and reduced their social activities.

Biedronka maintained in Q3 the flexibility in opening hours to which it had resorted in Q2, now adjusted to store location and expected traffic. The commercial dynamic and operations flow were adjusted to respond to a lower frequency of visits.

Hebe, which was heavily impacted in Q2 by the closure of shopping centres, improved its operating performance throughout Q3 largely as a result of the lifting of restrictions to circulation. Sales' growth potential is still limited by the consumer's low shopping frequency.

In Portugal, retail stores continued in Q3 to be limited to a maximum of 5 persons per 100 sqm. The low mobility of people was aggravated by the sharp drop in tourism. This drop impacted commerce activity in general and the demand for restaurants and hotels in particular.

In addition, in mid-September the sale of alcoholic beverages after 8 pm was banned.

Being a high frequency store, Pingo Doce's sales were pressured by fewer store visits and lower sales in its restaurants, take-away and coffee shops.

Recheio's performance continues to reflect the pressure caused by the significant drop in HoReCa demand.

In Colombia, strict confinement measures continued until the end of August. In addition to limiting the circulation of people, the curfew rules and the closing of commercial activity on certain days of the week were maintained. In Q3, these measures resulted in a reduction of c.16% in Ara's trading hours.

With a fragile economy where informality prevails and where it is estimated that 4.8 million formal jobs have been lost during this period, the country is experiencing a very severe and challenging recession.

OUTLOOK 2020

Until the end of Q3, the Polish market continued to show a certain resilience to the impacts of the health crisis. However, consumers became more cautious and more price sensitive.

In October, in response to the growing number of daily infections, a traffic-light-style colour system was implemented in Poland. This system classifies as yellow or red zones different geographic areas according to the local severity of the pandemic. The system prescribes different containment measures for yellow and red zones. In the case of retail, for stores located in the most affected areas (red zone), the limit to people inside the store is 1 customer per 15 sqm (for stores over 100 sqm) or 5 clients per checkout (in stores with an area less than 100 sqm). There was also the reintroduction during the days of the week, of exclusive hours (from 10 am to noon) for consumers older than 60.

Biedronka confirmed its capacity to anticipate and responded swiftly to the needs of consumers, gaining market share throughout the period. Our main banner proved that it continues to deserve the preference of the Polish consumers by reinforcing its focus on price leadership and product quality. Starting in the middle of October, the banner was, once again, the first to extend the opening hours of the stores in response to the onset of a new phase of the pandemic.

In Portugal, consumer demand was impacted by the large contraction in tourism, a sector that accounts for a large part of Portuguese employment. The back-to-school period seems to have increased street traffic, which might result in a rise in consumption relative to the last two quarters.

In the middle of October, the state of calamity was reinstated, imposing, among other restrictions, limits to the number of people who can gather in streets, restaurants and cafes.

Pingo Doce and Recheio keep investing on the competitiveness of their offer, reinforcing the attractiveness of their value propositions in response to a more price sensitive consumer.

In Colombia, national and local authorities implemented very restrictive containment measures. The economy and unemployment reflect the long lasting confinement that has been in place. The country has started to reopen slowly in September. It is still too early to gauge the impact of this reopening on consumer behaviour.

Ara preserved its value proposition during the confinement period and is reinforcing its cost discipline to operate in a consumer environment that is likely to become more challenging.

Market conditions for the coming months, which include the Christmas season, are hard to predict due to uncertainty about the evolution of the epidemic and the containment measures that may be implemented. Further restrictions on mobility at a national level are likely to be introduced. Nonetheless, we are now better prepared to guarantee an adequate response to the challenges that may arise. We will continue fighting for and winning consumer preference in an operational environment that will be more demanding than in the previous year.

With regards to investment, Biedronka, benefiting from less restrictive management of the health crisis in Poland, was the Company that quickly resumed its original plan and is trying to increase the pace of execution to recover from delays in its expansion. If conditions in the construction sector remain unchanged, Biedronka is expected to add c.100 locations to its network in the year. Pingo Doce should open c.13 stores and Ara c.50. We currently expect the 2020 Group capex programme to reach c.€450 mn.

KEY PERFORMANCE FIGURES

CONSOLIDATED RESULTS

(Million Euro)	9M 20		9M 19		D	Q3 20			Q3 19	D
Net Sales and Services	14,198		13,662		3.9%	4,881		4,754		2.7%
Gross Profit	3,116	21.9%	2,991	21.9%	4.2%	1,084		22.2% 1,058	22.3%	2.5%
Operating Costs		-2,087 -14.7% -1,941 -14.2%			7.5%		-690 -14.1%		-676 -14.2%	2.0%
EBITDA	1,029	7.3%	1,049	7.7%	-1.9%	395	8.1%	382	8.0%	3.3%
Depreciation	-545	-3.8%	-528	-3.9%	3.1%	-183	-3.8%	-177	-3.7%	3.8%
EBIT	485	3.4%	521	3.8%	-7.0%	211	4.3%	206	4.3%	2.8%
Net Financial Costs	-140	-1.0%	-127	-0.9%	10.4%	-45	-0.9%	-49	-1.0%	-9.3%
Gains in Joint Ventures and Associates	0	0.0%	0	0.0%	n.a.	0	0.0%	0	0.0%	n.a.
Other Profits/Losses	-21	-0.1%	- 6	0.0%	n.a.	- 1	0.0%	- 2	0.0%	n.a.
EBT	324	2.3%	389	2.8%	-16.7%	166	3.4%	155	3.3%	7.6%
Income Tax	-95	-0.7%	-99	-0.7%	-4.1%	-41	-0.8%	-39	-0.8%	4.4%
Net Profit	229	1.6%	289	2.1%	-21.1%	125	2.6%	115	2.4%	8.6%
Non-Controlling Interests	- 9	-0.1%	-23	-0.2%	-59.3%	-10	-0.2%	-12	-0.2%	-13.6%
Net Profit Attributable to JM	219	1.5%	267	2.0%	-17.8%	115	2.4%	103	2.2%	11.2%
EPS (€)	0.35		0.42		-17.8%	0.18		0.16		11.2%
EPS without Other Profits/Losses (€)	0.37		0.43		-13.2%	0.18		0.17		10.3%

BALANCE SHEET

(Million Euro)	9M 20	2019	9M 19
Net Goodwill	621	641	632
Net Fixed Assets	3,853	4,140	3,906
Net Rights of Use (RoU)	2,109	2,318	2,209
Total Working Capital	-2,573	-2,793	-2,576
Others	140	94	85
Invested Capital	4,150	4,400	4,256
Total Borrowings	548	732	654
Financial Leases	13	17	17
Capitalised Operating Leases	2,205	2,368	2,249
Accrued Interest	1	3	- 1
Cash and Cash Equivalents	-872	-949	-734
Net Debt 1	1,894	2,172	2,185
Non-Controlling Interests	248	254	246
Share Capital	629	629	629
Reserves and Retained Earnings	1,379	1,346	1,196
Shareholders Funds	2,256	2,229	2,071

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

CASH FLOW

(Million Euro)	9M 20	9M 19
EBITDA	1,029	1,049
Capitalised Operating Leases Payment	-203	-194
Interest Payment	-114	-120
Other Financial Items	0	0
Income Tax	-142	-116
Funds From Operations	572	619
Capex Payment	-367	-399
Change in Working Capital	18	140
Others	-17	- 5
Cash Flow	205	356

SALES PERFORMANCE

Group sales were €14.2 bn, 3.9% above 9M 19 (+6.6% at constant exchange rates), with LFL of 3.5%. In Q3, sales reached 4.9 bn, 2.7% ahead of Q3 19 (+5.4% at constant exchange rates) with LFL at 2.2%.

In Poland, consumers have shown more restraint since the beginning of the pandemic but continue to react to commercial proposals that offer quality products at good prices.

Food inflation was 5.8% in the 9M, having declined from 6.4% in Q2 to 3.2% in Q3.

1.7%

-9.4%

Biedronka anticipated market conditions early in the pandemic. The banner responded to consumer needs with increased availability, by extending opening hours whenever necessary, and with increased commercial assertiveness. The result was a strong performance dynamic that persisted in Q3 and allowed the company to compensate for lower basket inflation.

Sales in the 9M grew 10.3% in local currency, including a LFL of 7.2%. In Q3 sales grew 9.3% in local currency, with LFL at 6.0%.

In euro terms, in the 9M, Biedronka sales increased 7.3% to €9.9 bn. In Q3, sales reached €3.4 bn, 6.4% ahead of Q3 19. Market share increased in every month of the 9M period.

After having put on hold its investment plan at the beginning of the pandemic, Biedronka is currently focused on executing its expansion and refurbishment programme and has opened 52 new locations (45 net additions) and remodelled 167 stores in the 9M.

-1.7%

Hebe LFL

-26.6%

Q1 Q2 Q3 9M 20

The banner's performance was heavily impacted in Q2 by the closure of shopping centres. The reopening of these centres in early May, together with the slow resumption of social life, allowed the Company to build some sales dynamics visible in the Q3 performance.

In Portugal, consumer demand was heavily pressured by the pandemic, with clear signs of trading down in food retail. Food inflation was 2.1% in the period (+2.3% in Q3).

Pingo Doce, was particularly affected by the restrictions to circulation of people, due to its focus on sales density and high number of visits. The restrictions also had a large negative impact on its restaurants, coffee shops and the take-away category.

In Q3, Pingo Doce improved its performance, maintaining a strong promotional policy designed to win the preference of the consumer in these difficult times.

Sales in 9M were €2.8 bn, a 2.3% reduction with LFL at -2.3% (excl. fuel). In Q3, sales decreased by 1.2% to reach 1 bn euros with LFL of -1.5% (excl. fuel).

The banner opened 9 new locations in the 9M and carried out 17 renovations.

Recheio's sales totalled €639 mn, a reduction of 15.6% relative to 9M 19, with LFL at -15.7%. In Q3, sales declined by 17.5% and the LFL was -17.7%.

The wholesale performance continued to reflect the sharp decline in the activity of the HoReCa channel, which represented more than 35% of Recheio's sales. In May 18, restaurants were allowed to reopen. There was a slow resumption of activity in this sector, with many small businesses still closed. Out-of-home food consumption was affected by the large decline in tourism flow and lower demand by domestic consumers.

In Colombia, the confinement measures in effect from the beginning of April until the end of August had a large negative impact on the economy. In September, street traffic increased as the country began to gradually lift containment measures and curfews ended in most municipalities.

Ara increased sales in local currency by 25.1%, with LFL of 9.8%. In euro terms, sales increased 9.9% to €615 mn. In Q3, sales in local currency increased 10.9% (-5.6% in euro terms) with LFL of -1.7%. This sales performance reflects c.16% decline in trading hours due to the implementation of containment measures.

In the 9M, the Company opened 33 stores (25 net additions).

RESULTS PERFORMANCE

The Group's EBITDA reached €1,029 mn, 1.9% below 9M 19. At constant exchange rates, EBITDA was broadly stable relative to the previous year (+0.3%). The EBITDA margin was 7.3% (7.7% in the 9M 19).

EBITDA & EBITDA Margin - JM Consolidated

This margin performance incorporates the increase in operating costs related to the pandemic (c.€32 mn) and the impact of operational deleveraging. This impact was particularly strong in Q2, as a result of lower sales performance in that period. In Q3, better sales performance and the execution of cost control initiatives in all Companies allowed the Group's EBITDA to reach €395 mn, 3.3% above Q3 19, with a margin of 8.1% (8.0% in Q3 19).

Biedronka recorded an EBITDA of €913 mn, an increase of 5.7% vs. the same period on the previous year (+8.7% at constant exchange rate).

The EBITDA margin was 9.2% versus 9.4% in 9M 19. In Q3, margin was at 9.6%, stable on Q3 19. The good sales performance, the optimized margin-mix management and the increased cost discipline allowed the Company to protect the EBITDA margin in a more demanding operational context due to the pandemic, while maintaining a strong promotional dynamic.

Distribution in Portugal registered an EBITDA of €190 mn, 21.4% below the same period in 2019. The EBITDA margin was 5.5% (6.6% in 9M 19). The savings from cost cuts were not sufficient to offset the additional costs related to the pandemic and the operational deleveraging resulting from the lower turnover. In Q3, margin was at 6.7% (7.4% in Q3 19).

Hebe's EBITDA was €10 mn, 18.2% higher than 9M 19.

Ara registered a reduction in EBITDA losses from €25 mn in 9M 19 to €23 mn in 9M 20, benefiting from the depreciation of the Colombian peso. Reflecting the impact of ongoing cost cuts, losses in local currency declined by c.20%, and decreased, in euros, by 35.3% to €3 mn, in Q3.

Net financial costs were €140 mn versus €127 mn in the same period last year. These costs include exchange translation losses totalling €20 mn, related to value adjustments in the capitalization¹ of operating leases in Poland denominated in euros.

Other profits and losses were €-21 mn, including restructuring costs and write-offs related to Ara's network adjustments and to the closure of Hebe's pharmacies and the increase in provisions for trade receivables and stock depreciations.

The Group's capex (excluding right of use assets acquired in accordance with IFRS16) was €258 mn, of which c.55% was allocated to Poland.

Cash flow generated in the period was €205 mn.

The net cash position, excluding capitalised operating leases, was €311 mn.

¹ In the context of the IFRS16 adoption, the capitalized rents, related to lease contracts denominated in euros, in Polish subsidiaries, are recognized as liabilities, translated at the exchange rate prevailing at the reporting date (September 30, 2020). According to this standard, the changes resulting from the differences in the exchange rate of each period have to be booked as Net financial costs (Net foreign exchange on leases),

PROPOSAL FOR RESERVES DISTRIBUTION

The Board of Directors acknowledges that there is substantial uncertainty about the timeline of the COVID-19 pandemic and of its effects in the different countries where the Group operates. All our businesses will continue to be affected by the pandemic crisis.

Nevertheless, the lessons learned so far leave the Group better prepared to face the challenges ahead. We have a solid financial position, ending September with a strong net cash position.

In the initial phase of the pandemic, when uncertainty was extreme, the Board of Directors decided to follow a prudent approach and to reduce the 2019 payout ratio from 50% to 30%. The Board of Directors reserved, at the time of this decision, the possibility of proposing the distribution of the remaining part of the 50% payout if conditions allowed it.

Therefore, taking into account the Group's performance, the cash position at the end of September, and the need to maintain financial flexibility, the Board will propose to the Extraordinary General Meeting to be held on November 26, the payment of €86.7 mn from the Company's free reserves, representing a gross amount of €0.138 per share, excluding own shares.

+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

Extraordinary General Meeting: November 26, 2020

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)	9M 20	9M 19	9M 20	9M 19
Net Sales and Services	14,198	13,662	14,198	13,662
Cost of Sales	-11,082	-10,671	-11,082	-10,671
Gross Profit	3,116	2,991	3,116	2,991
Distribution Costs	-2,381	-2,239	-2,444	-2,296
Administrative Costs	-251	-231	-252	-232
Other Operating Profits/Losses	-21	- 8	-21	- 8
Operating Profit	464	513	400	455
Net Financial Costs	-140	-127	-25	-24
Gains/Losses in Other Investments	0	2	0	2
Gains in Joint Ventures and Associates	0	0	0	0
Profit Before Taxes	324	389	375	434
Income Tax	-95	-99	-103	-106
Profit Before Non Controlling Interests	229	289	271	328
Non-Controlling Interests	- 9	-23	-11	-25
Net Profit Attributable to JM	219	267	260	302

INCOME STATEMENT (Management View)

		(Excl. IFRS16)					(Excl. IFRS16)
(Million Euro)	9M 20		9M 19		D	Q3 20			Q3 19	D
Net Sales and Services	14,198		13,662		3.9%	4,881		4,754		2.7%
Gross Profit	3,116	21.9%	2,991	21.9%	4.2%	1,084	22.2% 1,058		22.3%	2.5%
Operating Costs		-2,385 -16.8% -2,234 -16.4%			6.8%		-789 -16.2%		-773 -16.3%	2.1%
EBITDA	731	5.1%	757	5.5%	-3.4%	296	6.1%	285	6.0%	3.5%
Depreciation	-310	-2.2%	-294	-2.2%	5.6%	-105	-2.2%	-99	-2.1%	6.2%
EBIT	421	3.0%	463	3.4%	-9.2%	191	3.9%	187	3.9%	2.1%
Net Financial Costs	-25	-0.2%	-24	-0.2%	5.9%	- 7	-0.1%	- 8	-0.2%	-11.1%
Gains in Joint Ventures and Associates	0	0.0%	0	0.0%	n.a.	0	0.0%	0	0.0%	n.a.
Other Profits/Losses	-21	-0.1%	- 6	0.0%	n.a.	- 1	0.0%	- 2	0.0%	n.a.
EBT	375	2.6%	434	3.2%	-13.6%	183	3.8%	177	3.7%	3.4%
Income Tax	-103	-0.7%	-106	-0.8%	-2.8%	-44	-0.9%	-43	-0.9%	1.7%
Net Profit	271	1.9%	328	2.4%	-17.1%	139	2.9%	134	2.8%	4.0%
Non-Controlling Interests	-11	-0.1%	-25	-0.2%	-54.9%	-11	-0.2%	-13	-0.3%	-13.6%
Net Profit Attributable to JM	260	1.8%	302	2.2%	-14.0%	128	2.6%	121	2.6%	5.8%
EPS (€)	0.41		0.48		-14.0%	0.20		0.19		5.8%
EPS without Other Profits/Losses (€)	0.44		0.49		-10.0%	0.20		0.19		5.1%

BALANCE SHEET

	(Excl. IFRS16)
(Million Euro)	9M 20	2019	9M 19
Net Goodwill	621	641	632
Net Fixed Assets	3,853	4,140	3,906
Total Working Capital	-2,569	-2,788	-2,571
Others	124	86	78
Invested Capital	2,029	2,079	2,045
Total Borrowings	548	732	654
Financial Leases	13	17	17
Accrued Interest	1	3	- 1
Cash and Cash Equivalents	-872	-949	-734
Net Debt 1	-311	-196	-64
Non-Controlling Interests	253	257	248
Share Capital	629	629	629
Reserves and Retained Earnings	1,458	1,389	1,231
Shareholders Funds	2,341	2,275	2,108

1 Net Debt amount was restated in 2019.

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

CASH FLOW

	(Excl. IFRS16)
(Million Euro)	9M 20	9M 19
EBITDA	731	757
Interest Payment	-19	-22
Other Financial Items	0	0
Income Tax	-142	-116
Funds From Operations	571	619
Capex Payment	-367	-399
Change in Working Capital	18	141
Others	-16	- 5
Cash Flow	205	356

EBITDA BREAKDOWN

(Million Euro)			IFRS16	Excl. IFRS16
	9M 20	Mg	9M 19	Mg	9M 20	Mg	9M 19	Mg
Biedronka	913	9.2%	864	9.4%	709	7.2%	665	7.2%
Distribution Portugal	190	5.5%	242	6.6%	139	4.0%	189	5.1%
Ara	-23	n.a.	-25	n.a.	-47	n.a.	-51	n.a.
Hebe	10	5.7%	9	4.8%	- 7	n.a.	- 5	n.a.
Others & Cons. Adjustments	-62	n.a.	-39	n.a.	-64	n.a.	-41	n.a.
JM Consolidated	1,029	7.3%	1,049	7.7%	731	5.1%	757	5.5%

FINANCIAL RESULTS

	IFRS16		Excl. IFRS16
(Million Euro)	9M 20	9M 19	9M 20	9M 19
Net Interest	-15	-18	-15	-18
Interests on Capitalised Operating Leases	-95	-98	-	-
Exchange Differences	-25	- 8	- 5	- 2
Others	- 5	- 4	- 5	- 4
Financial Results	-140	-127	-25	-24

SALES BREAKDOWN

(Million Euro)	9M 20		9M 19		D %		Q3 20		Q3 19		D %
		% total		% total	excl. FX	Euro		% total		% total	excl. FX	Euro
Biedronka	9,909	69.8%	9,236	67.6%	10.3%	7.3%	3,374	69.1%	3,172	66.7%	9.3%	6.4%
Pingo Doce	2,844	20.0%	2,912	21.3%		-2.3%	1,006	20.6%	1,019	21.4%		-1.2%
Recheio	639	4.5%	757	5.5%		-15.6%	240	4.9%	291	6.1%		-17.5%
Ara	615	4.3%	560	4.1%	25.1%	9.9%	192	3.9%	204	4.3%	10.9%	-5.6%
Hebe	180	1.3%	180	1.3%	3.0%	0.1%	65	1.3%	63	1.3%	6.4%	3.5%
Others & Cons. Adjustments	10	0.1%	17	0.1%		-42.1%	4	0.1%	6	0.1%		-21.7%
Total JM	14,198		100% 13,662	100%	6.6%	3.9%	4,881	100%	4,754	100%	5.4%	2.7%

SALES GROWTH

	Total Sales Growth					LFL Growth
	Q1 20	Q2 20	H1 20	Q3 20	9M 20	Q1 20	Q2 20	H1 20	Q3 20	9M 20
Biedronka
Euro	12.6%	3.4%	7.8%	6.4%	7.3%
PLN	13.2%	8.7%	10.9%	9.3%	10.3%	11.1%	4.8%	7.8%	6.0%	7.2%
Hebe
Euro	14.6%	-16.6%	-1.7%	3.5%	0.1%
PLN	15.2%	-11.8%	1.2%	6.4%	3.0%	-1.7%	-26.6%	-14.8%	1.7%	-9.4%
Pingo Doce	3.5%	-8.8%	-2.9%	-1.2%	-2.3%	2.8%	-10.2%	-4.0%	-2.5%	-3.5%
Excl. Fuel	4.3%	-7.1%	-1.6%	-0.1%	-1.1%	3.5%	-8.5%	-2.8%	-1.5%	-2.3%
Recheio	0.2%	-26.7%	-14.4%	-17.5%	-15.6%	0.1%	-26.9%	-14.5%	-17.7%	-15.7%
Ara
Euro	38.9%	0.5%	18.8%	-5.6%	9.9%
COP	52.3%	16.7%	33.4%	10.9%	25.1%	34.3%	1.1%	16.6%	-1.7%	9.8%
Total JM
Euro	11.0%	-1.3%	4.6%	2.7%	3.9%
Excl. FX	12.0%	3.1%	7.3%	5.4%	6.6%	9.5%	-0.7%	4.2%	2.2%	3.5%

STORE NETWORK

Number of Stores	2019		Openings		Closings	9M 20	9M 19
		Q1 20	Q2 20 Q3 20		9M 20
Biedronka	3,002	11	23	18	7	3,047	2,932
Hebe	273	8	3	1	29	256	255
Pingo Doce	441	1	2	6	0	450	437
Recheio	42	0	0	0	0	42	42
Ara	616	19	4	10	8	641	578

Sales Area (sqm)	2019		Openings		Closings/ Remodellings	9M 20	9M 19
		Q1 20	Q2 20	Q3 20	9M 20
Biedronka	2,021,345	8,394	16,694	12,708	-5,533	2,064,673	1,965,522
Hebe	66,805	2,109	703	240	2,897	66,960	62,052
Pingo Doce	513,272	102	2,496	3,771	0	519,641	510,142
Recheio	133,826	0	0	0	0	133,826	133,826
Ara	207,982	6,235	1,502	3,622	3,001	216,340	195,506

CAPEX

(Million Euro)	9M 20	Weight	9M 19	Weight
Biedronka	141	55%	221	55%
Distribution Portugal	71	28%	109	27%
Ara	16	6%	57	14%
Others	30	12%	18	4%
Total CAPEX	258	100%	405	100%

2. 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 Notes

INCOME SATEMENT

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 Nine Months 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 €-544.8 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	Consolidated Balance Sheet
in this release	(in Consolidated Financial Statements)
	First Nine Months 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 (€620.9 mn) and Financial leases (€13.5 mn)
Net Rights of Use (RoU)	Includes the heading of Net rights of use excluding the Financial leases (€13.5 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 €-12.1 mn related to 'Others' due to its operational nature. Excludes the value of €-1.9 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; Provisions for risks and contingencies. Excludes the value of €-12.1 mn related to 'Others' due to its operational nature, as well as, when applicable, Collateral deposits associated with financial debt (note – Debtors, accruals and deferrals)
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 (€12.7 mn)
Accrued Interest	Includes the heading Derivative financial instruments and the value of €-1.9 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, as well as, when applicable, Collateral deposits associated with financial debt (note – Debtors, accruals and deferrals)
Net Debt
Non-Controlling Interests	Non-Controlling interests
Share Capital	Share capital
Reserves and Retained	Includes the heading Share premium, Own shares, Other

Following ESMA guidelines on Alternative Performance Measures from October 2015

Shareholders' Funds

CASH FLOW

Cash Flow in this release	Consolidated Cash Flow Statement (in Consolidated Financial Statements) First Nine Months 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