CONSOLIDATED REPORT AND ACCOUNTS

FIRST HALF

2021

INDEX

Message from the Chairman and CEO - Pedro Soares dos Santos
I – CONSOLIDATED MANAGEMENT REPORT
1. Performance Overview & Key Drivers	4
2. Performance Analysis by Banner	5
3. Consolidated Financial Information Analysis	7
4. Second Quarter 2021 Update on Covid-19 Impact	8
5. Outlook for 2021	9
6. Consolidated Management Report Appendix	10
6.1. The Impact of IFRS 16 on Financial Statements	10
6.2. Sales Detail	11
6.3. Stores Network	12
6.4. Working Capital	12
6.5. Total Borrowings	12
6.6. Definitions	12
7. Management Report Annex	13
8. Reconciliation Notes	14
9. Information Regarding Individual Financial Statements	16
II – CONSOLIDATED FINANCIAL STATEMENTS

1. Consolidated Financial Statements	17
2. Statement of the Board of Directors	33
3. Auditor's Report	34

Message from the Chairman and CEO

Pedro Soares dos Santos

'Our performance in the first half of the year reflects the strength and competitiveness of our business models in all countries where we operate.

Biedronka improved its ability to earn the preference of consumers. The Company showed that it can maintain momentum and create differentiating commercial opportunities both in difficult times – such as earlier this year when a new wave of Covid-19 infections hit Poland – and in easier times, such as in the second quarter of this year.

In Portugal, Pingo Doce and Recheio worked hard to recover sales and EBITDA, limiting the negative effects of the ongoing constraints that still hamper our operation and performance.

In an operating context that remained difficult in Q2, Ara was able to deliver solid performance on sales and EBITDA, improving its positioning in the Colombian market and confirming its ability to capture the potential we see in Colombia.

We will remain focused on pursuing profitable growth and on capturing market opportunities, while protecting our teams and clients, cooperating with our suppliers, and supporting the communities we serve.'

I - CONSOLIDATED MANAGEMENT REPORT

Strong sales performance driving profitability

1. Performance Overview & Key Drivers

H1 I KEY FIGURES

+6.3% SALES TO €9.9 BN (+8.8% excl. FX)

+12.6% EBITDA TO €715 MN (+15.5% excl. FX)

+78.9% NET PROFIT TO €186 MN EPS AT €0.30

CASH FLOW AT €82 MN

All our banners had a promising first half in 2021 which compares with a very challenging period in 2020, when performance was hampered by the pandemic outbreak, particularly in Q2. Notwithstanding, the dynamism and competitiveness of our business models drove strong sales performance and improved profitability in the first six months of this year.

Biedronka increased sales growth throughout the period, posting a 7.7% LFL in H1. The reopening of the country and positive consumer demand increased the effectiveness of the commercial campaigns executed by the banner and allowed our main Company to protect its EBITDA margin.

With eased restrictions since April and less demanding comparable in 2020, Pingo Doce and Recheio grew their sales in Q2. These banners delivered H1 LFL of 2.8% (excl. fuel) and -0.6%, respectively.

Ara's sales grew consistently in the six months with a 12.6% LFL growth (+22.8% in Q2) and positive EBITDA (under IFRS16), despite the challenging socioeconomic backdrop.

Group EBITDA margin improved from 6.8% to 7.2% in H1, reflecting sound Group LFL at 6.6%, positive margin mix and good results obtained from the efficiency programmes implemented in all companies.

Strong cash generation further reinforced the Group's Balance Sheet. Net cash position by the end of the period stood at €407 mn (excl. capitalised operating leases), after the €181 mn dividend payment in May.

We confirm the Outlook for 2021 as disclosed in our 2020FY Results release and reiterated in April 28, 2021.

Despite ongoing uncertainty about the impact of the pandemic on the economies where we operate, our businesses are well prepared to deliver on their strategic priorities by guaranteeing their relevance and benefits to the consumers while constantly adapting to evolving market circumstances to preserve profitability.

Key Updates

Committed to our teams, we increased the number of permanent employee contracts in the Group by 6p.p. These contracts cover 70% of our workforce. We also increased by 3% (to €5.7 mn) our voluntary investment in employee support measures, including Health, Education and Family Welfare programmes.

In terms of our work to improve the future of the world's forests, we highlight in H1 the following measures: i. joining the Colombian Government's Voluntary Agreement to fight deforestation linked to the local palm oil production; ii. ensuring the plantation of over 58 thousand trees under the Serra do Açor Forest project, aimed at preserving and developing the landscape ravaged by the wildfires of 2017, and iii. the signature by Jerónimo Martins of an open letter to the European Commission, encouraging the adoption of more ambitious measures to curb deforestation.

2. Performance Analysis by Banner

POLAND

In Poland, the consumer environment has been resilient since the beginning of the year and improved in Q2.

Against a backdrop of a more controlled pandemic situation and an easing of restrictive measures, the number of store visits increased. Biedronka profited from the higher number of opportunities to interact with consumers. This positive trend, reinforced by favourable weather, allowed Biedronka to further pursue dynamic and innovative commercial actions.

Food inflation in the country increased from 0.6% in Q1 to 1.6% in Q2. Biedronka's basket inflation was lower than that of the market, with the banner continuing to operate with deflation in the second quarter.

In the first six months, sales grew 9.8% in local currency, including a LFL of 7.7%. In euro terms, sales reached €7.0 bn, 6.8% ahead of H1 20.

In Q2, sales in local currency increased 10.4% with LFL of 8.8%. In euro terms, sales were €3.6 bn, 9.8% growth over Q2 20.

EBITDA reached €624 mn, an increase of 6.0% vs. H1 20 (+9.0% at constant exchange rate).

The EBITDA margin was 8.9% versus 9.0% in H1 20. Strong LFL sales performance, effective margin-mix management, and increased efficiency and cost discipline allowed Biedronka to mitigate the pressure from the retail tax introduced in January 2021.

The Company remains on track in executing its investment programme for the year. Biedronka opened 53 stores (39 net additions) and remodelled 153 locations during the first six months of the year.

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21

Hebe registered, in H1, sales growth of 10.4% in local currency. Excluding the pharma business closed in July 2020, sales increased 23.4% with a LFL of 17.7% (the LFL includes online sales).

In Q2, with the country easing restrictions to retail activity, consumer demand began to show some positive signs. Relative to the beginning of the pandemic in Q2 20, Hebe sales increased by 30.5% (+44.2% excluding the pharma business) with a LFL of 38.2%.

In euro terms, H1 sales reached €123 mn, 7.3% ahead of H1 20. In Q2, sales were €66 mn, 30.4% more than in Q2 20.

Online sales were a relevant contributor to top-line performance, reaching 14% of sales in the first six months of the year. The banner is already testing the use of its e-commerce platform to enter new markets.

Hebe's EBITDA was €5.4 mn versus €4.0 mn in H1 20. EBITDA margin was 4.4% versus 3.4% in H1 20.

PORTUGAL

In Portugal, consumer demand remained depressed and impacted by lack of tourists. Food inflation decreased from +0.9% in Q1 to -0.1% in Q2.

The number of visits to Pingo Doce was affected by the limit on the number of people inside stores, the restrictions imposed on restaurants and coffee shops, and low circulation in city centres. Nonetheless, the banner maintained its strong commercial activity.

Sales reached €1.9 bn, growing 4.6% over H1 20 including a LFL (excl. fuel) of 2.8%. This performance incorporates the impact of negative basket inflation.

In Q2, sales reached €993 mn, +10.1% than in Q2 20 with LFL (excl. fuel) at 7.3%, helped by a low comparison base in Q2 20.

With top line growth driving improved operational leverage, EBITDA reached €112 mn, 19.2% ahead of H1 20 and EBITDA margin improved 70 basis points vs the same period last year.

The banner opened three new locations and carried out seven renovations.

Recheio's sales were €398 mn, broadly in line with H1 20 with LFL at -0.6%.

Despite prevailing limitations to HoReCa activities, in Q2, the reopening of restaurants, a soft recovery in tourism and a low comparison base in Q2 20 drove sales to grow 21.1% and reach €224 mn.

EBITDA for the six months reached €15 mn, 16.4% ahead of the same period in 2020. The EBITDA margin was 3.7% (3.1% in H1 20), benefiting from the sales performance.

COLOMBIA

In Colombia, the operating environment was increasingly challenging from April on as restrictions to control the pandemic became more frequent, although less severe than in 2020. In May, social protests added further pressures to the functioning of the retail market, particularly in certain regions of the country.

Ara had a strong performance in the six months with sales growing in local currency by 20.9%, including LFL of 12.6%.

In Q2, sales denominated in local currency grew 32.8% with LFL at 22.8% also reflecting the impact of Covid-19 in Q2 20.

In euro terms, H1 sales reached €473 mn, 11.9% ahead of H1 20. In Q2 sales were €237 mn, 26.1% ahead of Q2 20.

EBITDA reached €+6 mn in H1 21 versus €-19 mn in H1 20. This very positive evolution was driven by top line performance and the restructuring and cost optimization undertaken in 2020.

In the first six months of the year, Ara opened 41 stores, delivering on its expansion target.

3. Consolidated Financial Information Analysis

Consolidated Results

(Million Euro)	H1 21		H1 20		D	Q2 21		Q2 20		D
Net Sales and Services	9,902		9,317		6.3%	5,116		4,601		11.2%
Gross Profit	2,133	21.5%	2,032	21.8%	5.0%	1,104	21.6%	991	21.5%	11.4%
Operating Costs		-1,419 -14.3%		-1,397 -15.0%	1.6%		-711 -13.9%		-666 -14.5%	6.8%
EBITDA	715	7.2%	635	6.8%	12.6%	393	7.7%	325	7.1%	20.7%
Depreciation	-371	-3.7%	-362	-3.9%	2.7%	-186	-3.6%	-179	-3.9%	4.3%
EBIT	343	3.5%	273	2.9%	25.7%	206	4.0%	147	3.2%	40.9%
Net Financial Costs	-74	-0.7%	-96	-1.0%	-22.3%	-30	-0.6%	-33	-0.7%	-10.3%
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	-6	-0.1%	-20	-0.2%	n.a.	-3	-0.1%	-16	-0.3%	n.a.
EBT	264	2.7%	157	1.7%	67.7%	174	3.4%	9 8	2.1%	77.5%
Income Tax	-70	-0.7%	-54	-0.6%	29.2%	-41	-0.8%	-32	-0.7%	29.3%
Net Profit	194	2.0%	103	1.1%	87.9%	133	2.6%	6 6	1.4%	100.8%
Non-Controlling Interests	-8	-0.1%	1	0.0%	n.a.	-4	-0.1%	3	0.1%	n.a.
Net Profit Attributable to JM	186	1.9%	104	1.1%	78.9%	129	2.5%	6 9	1.5%	85.3%

EPS (€)	0.30		0.17		78.9%	0.20		0.11		85.3%
EPS without Other Profits/Losses (€)	0.30		0.19		59.5%	0.21		0.13		60.6%
At Group level, top line grew 6.3% (+8.8% excl. FX). The sound sales performance was a common element to all banners and drove consolidated EBTIDA to increase by 12.6% (+15.5% excl. FX). The EBITDA figure includes Covid-19 related costs of €10 mn (€29 mn in H1 20).
Net financial costs were at €-74 mn in H1 21 (€-96 mn in H1 20), incorporating exchange translation gains of €+3 mn related to value adjustments in the Lease liabilities in Poland denominated in euros that in H1 20 were a loss of €-14 mn.
Balance Sheet
(Million Euro)			H1 21		2020		H1 20

At Group level, top line grew 6.3% (+8.8% excl. FX). The sound sales performance was a common element to all banners and drove consolidated EBTIDA to increase by 12.6% (+15.5% excl. FX). The EBITDA figure includes Covid-19 related costs of €10 mn (€29 mn in H1 20).

Net financial costs were at €-74 mn in H1 21 (€-96 mn in H1 20), incorporating exchange translation gains of €+3 mn related to value adjustments in the Lease liabilities in Poland denominated in euros that in H1 20 were a loss of €-14 mn.

Balance Sheet

Net Goodwill	623	620	627
Net Fixed Assets	3,943	3,967	3,914
Net Rights of Use (RoU)	2,176	2,154	2,167
Total Working Capital	-2,770	-2,864	-2,416
Others	178	133	7
Invested Capital	4,149	4,010	4,299
Total Borrowings	507	524	734
Financial Leases	19	11	14
Capitalised Operating Leases	2,299	2,262	2,249
Accrued Interest	0	-3	1
Cash and Cash Equivalents	-933	-1,041	-848
Net Debt	1,892	1,752	2,150
Non-Controlling Interests	240	249	238
Share Capital	629	629	629
Reserves and Retained Earnings	1,388	1,379	1,283
Shareholders Funds	2,257	2,257	2,150

Net cash position by the end of the period stood at €407 mn (excluding capitalised operating leases), after the €181 mn dividend payment in May.

Cash Flow

(Million Euro)	H1 21	H1 20
EBITDA	715	635
Capitalised Operating Leases Payment	-138	-136
Interest Payment	-75	-77
Other Financial Items	0	0
Income Tax	-110	-97
Funds From Operations	392	325
Capex Payment	-252	-289
Change in Working Capital	-53	-137
Others	-4	-17
Cash Flow	82	-118

All in all, this was a period with strong cash flow generation (€82 mn) that improved further the Group's Balance Sheet. Good management of working capital flows that in H1 20, as flagged at the time, were impacted by lower sales growth and an unfavourable calendar effect, also contributed to this performance.

Capex

(Million Euro)	H1 21	Weight	H1 20	Weight
Biedronka	120	60%	61	43%
Distribution Portugal	43	21%	45	32%
Ara	19	9%	9	6%
Others	18	9%	27	19%
Total CAPEX	200	100%	142	100% 2

Our capex programme (excluding right of use assets acquired in accordance with IFRS16) was €200 mn, 60% of which was allocated to Biedronka.

4. Second Quarter 2021 update on Covid-19 Impact

In Poland, a phased plan to reopen the country after the lockdown imposed in Q1 was implemented throughout Q2.

Schools progressively reopened starting at the end of April.

Shopping malls, which had been closed first in January and then after March 20, reopened in May. Restaurants, which were closed in the first quarter, started reopening in mid-May.

The limit of people inside retail stores was eased by the end of June, from one person per 15 sqm (stores ahead of 100 sqm) to one person per 10 sqm.

In Portugal, the progressive reopening of the country started in April.

Retail store traffic continued to be limited to a maximum of five people per 100 sqm. At times of increased risk, various municipalities imposed limits on closing hours.

Restrictions on opening hours were also imposed on restaurants and coffee shops. Bars and night clubs remained closed.

In Colombia, with the number of infections rising since mid-March, restrictions to circulation in Q2 became more frequent and impacted more regions. Nevertheless, the confinement measures were not as strict as in 2020.

5. Outlook for 2021

We reiterate the outlook provided in 3 March in our 2020FY results release for the full year 2021:

The macroeconomic prospects for the rest of 2021 continue to depend heavily on the evolution of the pandemic, including the spread of the more infectious delta variant, and on the success of the ongoing large-scale vaccination programmes. Our banners entered 2021 with clear strategic priorities and are delivering on their targets: i) to grow sales by focusing on consumers and their needs; ii) to invest in their value proposition to defend and further build competitive advantages; iii) to protect profitability through cost discipline and continuous improvements in operational processes, and iv) to maintain a long-term perspective that ensures we will continue to follow a responsible path with our consumers, our people, our suppliers, and the communities of the countries where we operate.

As in 2020, amongst our geographies, Poland is expected to be the one with the strongest domestic private consumption. Biedronka will remain focused on guaranteeing, on a day-to-day basis, the preference of consumers, combining price leadership with the evolution of its offer. The efficiency projects under way and the agility developed to respond to the pandemic will continue to help protect profitability in 2021, limiting the impacts of the expected low food inflation and of the implementation of the retail tax in January.

Hebe will continue to consolidate its store network and focus its growth strategy on the development of its online operation that is expected to continue to gain momentum, allowing Hebe to enter new markets in the near term.

In Portugal, the recovery in 2021 is still highly dependent on the evolution of the health crisis, the vaccination programme, and its impacts on the domestic market and the tourism flow.

For Pingo Doce and Recheio, restrictions on the circulation of people, on the number of customers inside stores, and on the operation of restaurants and hotels represent particularly challenging conditions given the high-traffic nature of these businesses. Anytime these restrictions ease we see an immediate positive impact on our businesses.

Pingo Doce is investing to defend its performance in face of current restrictions, maintaining its vision on the central role of Fresh, Take Away and Restaurants as part of its differentiation and growth strategy.

Recheio expects a slow recovery of the HoReCa channel. The Company will look for opportunities to continue to grow in the Traditional Retail segment.

In Colombia, the reopening of the economy is expected to lead to a recovery in 2021, despite the fragile consumer demand.

Ara entered 2021 well prepared to improve its growth performance. The Company benefits from a renewed cost structure that will allow it to continue to improve its EBITDA.

If restrictions implemented in our markets do not impact execution, the capex programme is expected to reach c.€700 mn of which c.60% are devoted to Biedronka.

This programme includes the addition of c.100 locations (net) to the Biedronka network (c.50% in the smaller format), and the remodelling of 250-300 stores. In Portugal, Pingo Doce expects to open c.10 stores and remodel c.15 locations.

Ara expects to add more than 100 new locations to its store network.

Supported by the up-to-date solid performance and by the strength of our balance sheet, we entered the second half of 2021 with well-defined strategic priorities, aware of the challenges, and with an unwavering focus on cash generation as a guarantee of our ability to invest in strengthening our competitive positions. At the same time, we maintain the flexibility to take advantage of growth opportunities consistent with our strategic vision.

Lisbon, 27 July 2021

The Board of Directors

6. Consolidated Management Report Appendix

6.1. The impact of IFRS 16 on Financial Statements

Income Statement by Functions

	IFRS16		Excl. IFRS16
(Million Euro)	H1 21	H1 20	H1 21	H1 20
Net Sales and Services	9,902	9,317	9,902	9,317
Cost of Sales	-7,769	-7,285	-7,769	-7,285
Gross Profit	2,133	2,032	2,133	2,032
Distribution Costs	-1,617	-1,587	-1,661	-1,630
Administrative Costs	-173	-171	-174	-172
Other Operating Profits/Losses	-6	-20	-6	-20
Operating Profit	338	253	293	210
Net Financial Costs	-74	-96	-13	-18
Gains in Joint Ventures and Associates	0	0	0	0
Profit Before Taxes	264	157	280	192
Income Tax	-70	-54	-72	-60
Profit Before Non Controlling Interests	194	103	208	132
Non-Controlling Interests	-8	1	-9	0
Net Profit Attributable to JM	186	104	199	132

Income Statement (Management View)

	(Excl. IFRS16)						(Excl. IFRS16)
(Million Euro)	H1 21		H1 20		D	Q2 21		Q2 20		D
Net Sales and Services	9,902		9,317		6.3%	5,116		4,601		11.2%
Gross Profit	2,133	21.5%	2,032	21.8%	5.0%	1,104	21.6%	991	21.5%	11.4%
Operating Costs	-1,621	-16.4%	-1,597	-17.1%	1.5%	-813	-15.9%	-764	-16.6%	6.4%
EBITDA	513	5.2%	435	4.7%	17.8%	291	5.7%	227	4.9%	28.4%
Depreciation	-214	-2.2%	-205	-2.2%	4.3%	-108	-2.1%	-102	-2.2%	6.0%
EBIT	299	3.0%	230	2.5%	29.8%	184	3.6%	125	2.7%	46.5%
Net Financial Costs	-13	-0.1%	-18	-0.2%	-28.9%	-6	-0.1%	-9	-0.2%	-26.6%
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	-6	-0.1%	-20	-0.2%	n.a.	-3	-0.1%	-16	-0.3%	n.a.
EBT	280	2.8%	192	2.1%	46.2%	174	3.4%	101	2.2%	72.6%
Income Tax	-72	-0.7%	-60	-0.6%	21.4%	-41	-0.8%	-33	-0.7%	27.3%
Net Profit	208	2.1%	132	1.4%	57.4%	133	2.6%	6 8	1.5%	94.2%
Non-Controlling Interests	-9	-0.1%	0	0.0%	n.a.	-5	-0.1%	3	0.1%	n.a.
Net Profit Attributable to JM	199	2.0%	132	1.4%	51.2%	128	2.5%	7 1	1.5%	80.3%

EPS (€)	0.32		0.21		51.2%	0.20		0.11		80.3%
EPS without Other Profits/Losses (€)	0.32		0.23		38.2%	0.21		0.13		56.9%

Balance Sheet

(Million Euro)	H1 21	2020	H1 20
Net Goodwill	623	620	627
Net Fixed Assets	3,943	3,967	3,914
Total Working Capital	-2,765	-2,861	-2,411
Others	157	115	-7
Invested Capital	1,958	1,842	2,123
Total Borrowings	507	524	734
Financial Leases	19	11	14
Accrued Interest	0	-3	1
Cash and Cash Equivalents	-933	-1,041	-848
Net Debt	-407	-509	-99
Non-Controlling Interests	247	255	242
Share Capital	629	629	629
Reserves and Retained Earnings	1,488	1,467	1,351
Shareholders Funds	2,365	2,351	2,222

Cash Flow

	(Excl. IFRS16)
(Million Euro)	H1 21	H1 20
EBITDA	513	435
Interest Payment	-11	-14
Other Financial Items	0	0
Income Tax	-110	-97
Funds From Operations	392	325
Capex Payment	-252	-289
Change in Working Capital	-54	-137
Others	-3	-17
Cash Flow	82	-118

EBITDA Breakdown

			IFRS16			Excl. IFRS16
(Million Euro)	H1 21	Mg	H1 20	Mg	H1 21	Mg	H1 20	Mg
Biedronka	624	8.9%	589	9.0%	486	7.0%	453	6.9%
Pingo Doce	112	5.8%	9 4	5.1%	7 9	4.1%	6 2	3.4%
Recheio	1 5	3.7%	1 3	3.1%	1 2	3.0%	1 0	2.5%
Ara	6	1.3%	-19	n.a.	-11	n.a.	-36	n.a.
Hebe	5	4.4%	4	3.4%	-6	n.a.	-7	n.a.
Others & Cons. Adjustments	-47	n.a.	-46	n.a.	-49	n.a.	-47	n.a.
JM Consolidated	715	7.2%	635	6.8%	513	5.2%	435	4.7%

Financial Results

	IFRS16		Excl. IFRS16
(Million Euro)	H1 21	H1 20	H1 21	H1 20
Net Interest	-8	-11	-8	-11
Interests on Capitalised Operating Leases	-64	-63	-	-
Exchange Differences	1	-19	-2	-4
Others	-2	-3	-2	-3
Financial Results	-74	-96	-13	-18

6.2. Sales Detail

(Million Euro)	H1 21		H1 20		D %		Q2 21		Q2 20		D %
		% total		% total	excl. FX	Euro		% total		% total	excl. FX	Euro
Biedronka	6,981	70.5%	6,536	70.2%	9.8%	6.8%	3,594	70.2%	3,274	71.1%	10.4%	9.8%
Pingo Doce	1,922	19.4%	1,838	19.7%		4.6%	993	19.4%	902	19.6%		10.1%
Recheio	398	4.0%	400	4.3%		-0.4%	224	4.4%	185	4.0%		21.1%
Ara	473	4.8%	423	4.5%	20.9%	11.9%	237	4.6%	188	4.1%	32.8%	26.1%
Hebe	123	1.2%	115	1.2%	10.4%	7.3%	6 6	1.3%	5 1	1.1%	30.5%	30.4%
Others & Cons. Adjustments	4	0.0%	6	0.1%		-21.7%	2	0.0%	2	0.0%		8.2%
Total JM	9,902	100%	9,317	100%	8.8%	6.3%	5,116	100%	4,601	100%	12.0%	11.2%

Sales Growth

		Total Sales Growth			LFL Growth
	Q1 21	Q2 21	H1 21	Q1 21	Q2 21	H1 21
Biedronka
Euro	3.9%	9.8%	6.8%
PLN	9.2%	10.4%	9.8%	6.5%	8.8%	7.7%
Hebe
Euro	-10.9%	30.4%	7.3%
PLN	-6.3%	30.5%	10.4%	0.1%	38.2%	17.7%
Pingo Doce	-0.8%	10.1%	4.6%	-2.7%	8.1%	2.6%
Excl. Fuel	0.3%	9.4%	4.8%	-1.6%	7.3%	2.8%
Recheio	-19.0%	21.1%	-0.4%	-19.3%	21.1%	-0.6%
Ara
Euro	0.6%	26.1%	11.9%
COP	10.5%	32.8%	20.9%	3.7%	22.8%	12.6%
Total JM
Euro	1.5%	11.2%	6.3%
Excl. FX	5.7%	12.0%	8.8%	3.2%	10.1%	6.6%

6.3. Stores Network

Number of Stores	2020		Openings	Closings	H1 21	H1 20
		Q1 21	Q2 21	H1 21
Biedronka	3,115	21	32	14	3,154	3,031
Hebe	266	2	5	0	273	284
Pingo Doce	453	2	1	0	456	444
Recheio	42	0	0	0	42	42
Ara	663	26	15	0	704	631

Sales Area (sqm)	2020	Openings		Closings Remodellings	H1 21	H1 20
		Q1 21	Q2 21	H1 21
Biedronka	2,120,337	15,233	22,566	-1,926	2,160,062	2,046,559
Hebe	69,338	515	1,184	166	70,871	69,617
Pingo Doce	523,136	1,450	125	-1,855	526,566	515,870
Recheio	133,928	0	0	0	133,928	133,826
Ara	223,818	8,470	5,260	0	237,548	212,718

6.4. Working Capital

	IFRS16		Excl. IFRS16
(Million Euro)	H1 21	H1 20	H1 21	H1 20
Inventories	1,038	1,023	1,038	1,023
in days of sales	19	20	19	20
Customers	38	35	38	35
in days of sales	1	1	1	1
Suppliers	-3,111	-2,873	-3,111	-2,873
in days of sales	-57	-56	-57	-56
Others	-735	-601	-730	-597
Total Working Capital	-2,770	-2,416	-2,765	-2,411
in days of sales	-51	-47	-51	-47

6.5. Total Borrowings

(Million Euro)	H1 21	H1 20
Long Term Borrowings	349	211
as % of Total Borrowings	68.9%	28.8%
Average Maturity (years)	6.3	3.6
Short Term Borrowings	158	523
as % of Total Borrowings	31.1%	71.2%
Total Borrowings	507	734
Average Maturity (years)	4.6	1.7
% Total Borrowings in Euros	0.0%	9.5%
% Total Borrowings in Zlotys	43.3%	46.4%
% Total Borrowings in Colombian Pesos	56.7%	44.1%

6.6. Definitions

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).

7. Management Report Annex

List of Shareholders with Qualifying Holdings as at 30th June 2021*

Disclosures required by sub-paragraph c) of paragraph 1 of Article 9 of Securities Market Commission (CMVM) regulation no. 5/2008 (with reference to the first Half of 2021)

Shareholder	No. of Shares Held	% Capital	No. of Voting Rights	% of Voting Rights
Sociedade Francisco Manuel dos Santos, SGPS, S.E. Through Sociedade Francisco Manuel dos Santos, B.V.	353,260,814	56.14%	353,260,814	56.14%
Heerema Holding Company Inc. Through Asteck, S.A.	31,464,750	5.00%	31,464,750	5.00%
JP Morgan Asset Management Holdings Through Investment Funds Managed by JP Morgan	14,815,917	2.35%	14,815,917	2.35%
Through JP Morgan Investment Management	n.a. **	n.a. **	n.a. **	2.04%
Comgest Global Investors, S.A.S.	12,983,594	2.06%	12,983,594	2.06%
T. Rowe Price Group, Inc. Through T. Rowe Price International Ltd	12,821,174	2.04%	12,694,305	2.02%

* Source: Last communications made by the shareholders with qualifying holdings to Jerónimo Martins, SGPS, S.A. up to the said date.

** Information not disclosed to the issuer.

8. Reconciliation Note

(Following ESMA guidelines on Alternative Performance Measures from October 2015)

Income Statement

Income Statement in this release	Consolidated Income Statement by Functions (in Consolidated Financial Statements)
(page 7)	First Half 2021 Results
Net Sales and Services	Net sales and services
Gross Profit	Gross profit
Operating Costs	Includes headings of Distribution costs; Administrative costs and Other operating costs, excluding the amount of €-371.2 mn related with Depreciations and amortisations (note - Segments Reporting)
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/Losses in disposal of business (when applicable) and Gains/Losses in other investments (when applicable)
EBT	Profit before taxes
Income Tax	Income tax
Net Profit	Profit before non-controlling interests
Non-Controlling Interests	Non-Controlling interests
Net Profit Attributable to JM	Net profit attributable to Jerónimo Martins Shareholders

Balance Sheet

Balance Sheet (page 7)	Consolidated Balance Sheet (in Consolidated Financial Statements) First Half 2021 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 - €622.6 mn) and adding the Financial leases amount (€25.0 mn)
Net Rights of Use (RoU)	Includes the heading of Net rights of use excluding the Financial leases (€25.0 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 €- 15.0 mn related to 'Others' due to its operational nature. Excludes the amount €-0.1 mn related with Interest accruals and deferrals heading (note - Net financial debt) and, when applicable, dividends attributable to non-controlling interests
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 and, when applicable, dividends attributable to non controlling interests. Excludes the value of €-15.0 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	Includes the heading of Financial leases (2021: €19.2 mn; 2020: €11.5 mn) according with IAS 17 in place before IFRS16 adoption
Capitalised Operating Leases	Amount in the heading of Lease liabilities current and non-current, excluding Financial leases (note above)
Accrued Interest	Includes the heading Derivative financial instruments as well as the amount €-0.1 mn related with Interest accruals and deferrals (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 Earnings	Includes the heading Share premium, Own shares, Other reserves and Retained earnings

Shareholders' Funds

Cash Flow
Cash Flow (page 8)	Consolidated Cash Flow Statement (in Consolidated Financial Statements) First Half 2021 Results
EBITDA	Includes the headings Cash generated from operations before changes in working capital, including headings which did not generate cash flow, and excluding profit and losses that do not have operational nature (€3.8 mn)
Capitalised Operating Leases Payment	Included in the heading Leases paid, excluding the amount of €6.4 mn related with the payment of financial leases according with previous accounting standards
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 accounting standards (€14.0 mn)
Change in Working Capital	Includes Changes in working capital added from headings which did not generated cash flow in the amount (€-0.1 mn)
Others	Includes the headings disposal of business (when applicable), profit and losses which generated cash flow, although not having operational nature, in the amount of €-3.8 mn
Cash Flow	Corresponds to the Net changes in cash and cash equivalents, deducted from Dividends paid and received, Net change in loans and change in Collateral deposits associated to financial debt. It also includes acquisitions of tangible assets classified as finance leases (€14.0 mn) and deducted from the payment of financial leases (€6.4 mn), both according with previous accounting standards

9. Information Regarding Individual Financial Statements

In accordance with section b) of paragraph 3 of article 246 of the Portuguese Securities Code, the first Half individual financial statements of Jerónimo Martins SGPS, S.A. will not be disclosed as they do not include additional relevant information compared to the one presented in this report.

II - Consolidated Financial Statements

1. Consolidated Financial Statements

CONSOLIDATED INCOME STATEMENT BY FUNCTIONS	18
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	18
CONSOLIDATED BALANCE SHEET	19
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY	20
CONSOLIDATED CASH FLOW STATEMENT	21
Index to the Notes to the Consolidated Financial Statements	Page
1. Activity	22
2. Accounting policies	23
3. Segments reporting	25
4. Operating costs by nature	26
5. Net financial costs	26
6. Income tax recognised in the income statement	27
7. Tangible assets, intangible assets, investment property and right-of-use assets	27
8. Derivative financial instruments	28
9. Trade debtors, accrued income and deferred costs	28
10. Cash and cash equivalents	28
11. Dividends	28
12. Basic and diluted earnings per share	28
13. Borrowings	29
14. Lease liabilities	29
15. Financial net debt	29
16. Provisions and employee benefits	29
17. Trade creditors, accrued costs and deferred income	30
18. Contingencies	30
19. Related parties	31
20. Events after the balance sheet date	32

CONSOLIDATED INCOME STATEMENT BY FUNCTIONS

For the periods ended 30 June 2021 and 2020

				Euro thousand
	June	June	2nd Quarter	2nd Quarter
Notes	2021	2020	2021	2020
3	9,902,419	9,316,596	5,116,330	4,601,125
4	(7,768,946)	(7,284,833)	(4,012,169)	(3,609,975)
	2,133,473	2,031,763	1,104,161	991,150
4	(1,616,882)	(1,587,404)	(814,043)	(766,850)
4	(173,152)	(171,241)	(83,670)	(77,728)
4.1	(5,635)	(20,346)	(2,935)	(15,647)
	337,804	252,772	203,513	130,925
5	(74,192)	(95,516)	(29,537)	(32,923)
	(5)	(88)	21	18
	263,607	157,168	173,997	98,020
6	(69,720)	(53,958)	(41,337)	(31,959)
	193,887	103,210	132,660	66,061

	7,532	(930)	4,023	(3,377)
	186,355	104,140	128,637	69,438
12	0.2965	0.1657	0.2047	0.1105

To be read with the attached notes to the consolidated financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the periods ended at 30 June 2021 and 2020

				Euro thousand
	June	June	2nd Quarter	2nd Quarter
	2021	2020	2021	2020
Net profit	193,887	103,210	132,660	66,061
Other comprehensive income:

Items that will not be reclassified to profit or loss	-	-	-	-

Currency translation differences	5,831	(59,584)	28,727	18,280
Change in fair value of cash flow hedges	132	175	36	(616)
Change in fair value of hedging instruments on foreign operations	(2,551)	23,559	(9,814)	1,544
Related tax	477	(1,145)	1,764	1,070
Items that may be reclassified to profit or loss	3,889	(36,995)	20,713	20,278
Other comprehensive income, net of income tax	3,889	(36,995)	20,713	20,278
Total comprehensive income	197,776	66,215	153,373	86,339
Attributable to:
Non-controlling interests	7,532	(930)	4,023	(3,377)
Jerónimo Martins Shareholders	190,244	67,145	149,350	89,716
Total comprehensive income	197,776	66,215	153,373	86,339

To be read with the attached notes to the consolidated financial statements.

CONSOLIDATED BALANCE SHEET

As at 30 June 2021 and 31 December 2020

			Euro thousand
	Notes	June 2021	December 2020
Assets
Tangible assets	7	3,780,588	3,817,255
Intangible assets	7	760,429	757,368
Investment property	7	8,502	8,523
Right-of-use assets	7	2,200,601	2,166,551
Biological assets		4,380	3,338
Investments in joint ventures and associates		10,722	5,594
Other financial investments		1,332	1,327
Trade debtors, accrued income and deferred costs	9	71,059	70,338
Deferred tax assets		168,864	163,420
Total non-current assets		7,006,477	6,993,714
Inventories		1,028,223	973,919
Biological assets		5,693	4,786
Income tax receivable		17,911	17,467
Trade debtors, accrued income and deferred costs	9	373,875	393,023
Derivative financial instruments	8	892	3,611
Cash and cash equivalents	10	933,017	1,041,390
Total current assets		2,359,611	2,434,196
Total assets		9,366,088	9,427,910
Shareholders' equity and liabilities
Share capital		629,293	629,293
Share premium		22,452	22,452
Own shares		(6,060)	(6,060)
Other reserves		(124,765)	(128,654)
Retained earnings		1,496,463	1,491,097
		2,017,383	2,008,128
Non-controlling interests		239,923	249,063
Total shareholders' equity		2,257,306	2,257,191
Borrowings	13	349,080	363,798
Lease liabilities	14	1,933,390	1,896,547
Trade creditors, accrued costs and deferred income	17	676	779
Employee benefits	16	72,799	70,079
Provisions for risks and contingencies	16	33,491	32,831
Deferred tax liabilities		60,254	65,808
Total non-current liabilities		2,449,690	2,429,842
Borrowings	13	157,663	159,730
Lease liabilities	14	384,803	376,694
Trade creditors, accrued costs and deferred income	17	4,093,533	4,153,837
Derivative financial instruments	8	983	404
Income tax payable		22,110	50,212
Total current liabilities		4,659,092	4,740,877
Total shareholders' equity and liabilities		9,366,088	9,427,910

To be read with the attached notes to the consolidated financial statements

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the periods ended 30 June 2021 and 2020

									Euro thousand
					Shareholders' equity attributable to Shareholders of Jerónimo Martins, SGPS, S.A.
					Other reserves
	Share capital	Share premium	Own shares	Cash flow hedge	Currency translation reserves	Retained earnings	Total	Non controlling interests	Shareholders' equity
Balance Sheet as at 1 January 2020	629,293	22,452	(6,060)	(22)	(66,989)	1,396,293	1,974,967	253,941	2,228,908
Equity changes in 2020
Currency translation differences					(60,695)		(60,695)		(60,695)
Change in fair value of cash flow hedging				141			141		141
Change in fair value of hedging instruments on foreign operations					23,559		23,559		23,559
Other comprehensive income	-	-	-	141	(37,136)	-	(36,995)	-	(36,995)
Net profit						104,140	104,140	(930)	103,210
Total comprehensive income	-	-	-	141	(37,136)	104,140	67,145	(930)	66,215
Dividends						(130,086)	(130,086)	(15,361)	(145,447)
Balance Sheet as at 30 June 2020	629,293	22,452	(6,060)	119	(104,125)	1,370,347	1,912,026	237,650	2,149,676
Balance Sheet as at 1 January 2021	629,293	22,452	(6,060)	18	(128,672)	1,491,097	2,008,128	249,063	2,257,191
Equity changes in 2021
Currency translation differences				1	6,332		6,333		6,333
Change in fair value of cash flow hedging				107			107		107
Change in fair value of hedging instruments on foreign operations					(2,551)		(2,551)		(2,551)
Other comprehensive income	-	-	-	108	3,781	-	3,889	-	3,889
Net profit						186,355	186,355	7,532	193,887
Total comprehensive income	-	-	-	108	3,781	186,355	190,244	7,532	197,776
Dividends (note 11)						(180,989)	(180,989)	(17,199)	(198,188)
Acquisitions/Disposal of non-controlling interests						-	-	527	527
Balance Sheet as at 30 June 2021	629,293	22,452	(6,060)	126	(124,891)	1,496,463	2,017,383	239,923	2,257,306

To be read with the attached notes to the consolidated financial statements

CONSOLIDATED CASH FLOW STATEMENT

For the periods ended 30 June 2021 and 2020

			Euro thousand
		June	June
	Notes	2021	2020
Net results		186,355	104,140
Adjustments for:
Non-controlling interests		7,532	(930)
Income tax		69,720	53,958
Depreciations and amortisations		371,207	361,522
Net financial costs		74,192	95,516
Gains/Losses in associated companies		5	88
Profit/ Losses in tangible, intangible and right-of-use assets		1,841	3,263
Operating cash flow before changes in working capital		710,852	617,557
Changes in working capital:
Inventories		(54,558)	(13,402)
Trade debtors, accrued income and deferred costs		(1,901)	25,248
Trade creditors, accrued costs and deferred income		693	(157,673)
Provisions and employee benefits		2,611	4,610
Cash generated from operations		657,697	476,340
Income taxes paid		(109,977)	(96,668)
Cash flow from operating activities		547,720	379,672
Investment activities
Disposals of tangible and intangible assets		562	888
Interest received		241	2,180
Dividends received		85	50
Acquisition of tangible and intangible assets		(233,701)	(290,012)
Acquisition of other financial investments and investment property		(5)	‐
Acquisition and investments in joint ventures and associates		(5,218)	(350)
Collateral deposits associated to financial debt		‐	19,367
Cash flow from investment activities		(238,036)	(267,877)
Financing activities
Loans interest paid		(11,026)	(15,489)
Leases interest paid	5	(64,179)	(63,319)
Net change in loans	13	(1,462)	60,447
Leases paid	14	(144,561)	(137,646)
Dividends paid	11	(198,188)	(15,361)
Cash flow from financing activities		(419,416)	(171,368)
Net changes in cash and cash equivalents		(109,732)	(59,573)
Cash and cash equivalents changes
Cash and cash equivalents at the beginning of the year		1,041,390	929,311
Net changes in cash and cash equivalents		(109,732)	(59,573)
Effect of acquisition/sale of subsidiaries		524	‐
Effect of currency translation differences		835	(21,513)
Cash and cash equivalents at the end of June	10	933,017	848,225

To be read with the attached notes to the consolidated financial statements

				Euro thousand
	June	June	2nd Quarter	2nd Quarter
	2021	2020	2021	2020
Cash Flow from operating activities	547,720	379,672	349,211	201,099
Cash Flow from investment activities	(238,036)	(267,877)	(125,946)	(103,571)
Cash Flow from financing activities	(419,416)	(171,368)	(336,996)	(100,729)
Cash and cash equivalents changes	(109,732)	(59,573)	(113,731)	(3,201)

The amounts presented for quarters are not audited.

1. Activity

Jerónimo Martins, SGPS, S.A. (JMH), is the parent Company of Jerónimo Martins (Group) and has its head office in Lisbon.

The Group operates in the food area, particularly in the distribution and retail sale, with operations in Portugal, Poland, and Colombia.

Head Office: Rua Actor António Silva, n.º 7, 1649-033 Lisbon.

Share Capital: 629,293,220 euros.

Registered at the Commercial Registry Office and Tax Number: 500 100 144.

JMH has been listed on the Euronext Lisbon since 1989.

The Board of Directors approved these Consolidated Financial Statements on 27 July 2021.

Covid-19

As in much of the year 2020, the first semester of 2021 continues to be strongly impacted directly and indirectly by Covid-19 pandemic, which highlighted inequalities that already existed in society and, along with the economic and financial impacts caused on families and companies, brought behavioural changes that will continue over the next months.

Since the first cases started to appear in 2020, namely in the regions where it operates, the Group has been closely monitoring all developments related with the disease, implementing judiciously the measures deemed adequate sometimes in anticipation of the recommendations issued by the Health Authorities.

Group Companies adopted the operational measures needed to better protect their employees, customers and other stakeholders, introducing the necessary adjustments in their supply chains, during confinement and de-confinement phases.

Group Companies have also implemented initiatives to increase efficiency and control costs, that enabled them to limit the negative impact generated, directly and indirectly, by the Covid-19 pandemic, on their respective business profitability.

Taking into account the events that have taken place so far, although the next few months are likely to continue surrounded by uncertainty regarding the evolution of the pandemic scenario (including the behaviour of new more infectious variants) and the progress of large-scale vaccination, it is not expected that the effects of the pandemic could jeopardize the continuity of the Group's operations.

The Group expects to continue to mitigate the impacts of this adverse context, strengthening its business models, preparing the return to a more normalized operating context and maintaining its strategic vision of profitable growth.

Financial risks

Jerónimo Martins Group is exposed to several financial risks, namely: i. price risk, which includes interest and exchange rate risks; ii. transactional risk, which includes credit and liquidity risk; and iii. the risk arising from the Group's investments portfolio, which covers various economic and financial risks such as interest rate, credit, foreign exchange or inflation, as well as political and fiscal. These risks are described in Note 28 of the Consolidated Financial Statements chapter of the 2020 Annual Report.

During the first semester of 2021, there was no material changes in addition to the notes detailed below, that could significantly change the assessment of the risks that the Group is exposed to.

Specifically regarding the liquidity risk, throughout the semester the Group maintained liquidity reserves in the form of credit lines contracted with the financial institutions with which it relates, in order to ensure the ability to meet its commitments, without having to finance itself under unfavourable conditions. Thus, on 30 June 2021, the Group has contracted credit lines that were not being used in the total amount of EUR 1,039,583 thousand.

In addition, the Group had, at 30 June 2021, a liquidity reserve consisting of Cash and cash equivalents in the amount of EUR 933,017 thousand.

This way, despite the Covid-19 pandemic in its activity, the Group expects to satisfy all its treasury needs with the use of operating activity flows and liquidity reserves, and if eventually necessary, using the existing available credit lines.

The Group also believes that compliance with the current covenants associated with the issued debt is ensured.

Recoverability of tangible and intangible assets and investment property

The current strategy and business plans of the various Group Companies approved by the Group's Board of Directors, take into account the context of great uncertainty regarding the evolution of the Covid-19 pandemic, its impact in terms of economic slowdown and changes in the consumption pattern.

The measures that have been imposed by the different Governments, with activity restrictions at national, regional and local levels, for intermittent periods, significantly affects the ability to assess the future outlook for the operation of the Group's stores, which make up the bulk of their investments in tangible assets.

Even so, the evolution of the activities of the various business in the first semester of 2021, following the strategy defined in their plans, do not undermine the assessment made at the end of the year 2020, regarding the recoverability of its assets.

Changes to the consolidation perimeter

During the first half of 2021, the following companies entered the consolidation perimeter:

Subsidiaries

Company	Business area	Head office	% Owned
Mediterranean Aquafarm, S.A.	Saline brackish waters aquaculture	Saidia (Morocco)	66.68
Ovinos da Tapada - Agropecuária, Lda.	Animal farming	Fundão	80.00

Joint ventures and associates

Company	Business area	Head office	% Owned
Finançor Distribuição Alimentar, Lda.	Retail sales in supermarkets	Ponta Delgada	20.00
Finançor Cash & Carry, Lda.	Wholesale of food and consumer goods	Ponta Delgada	20.00
Tastyfruits, Lda.	Farming of crops	Lisboa	50.00

2. Accounting policies

2.1. Basis for preparation

All amounts are shown in thousand euros (EUR thousand) unless otherwise stated.

The amounts presented for quarters, and the corresponding changes are not audited.

JMH consolidated financial statements were prepared in accordance with the interim financial reporting standard (IAS 34), and all other International Financial Reporting Standards (IFRS) issued by International Accounting Standards Board (IASB) and with the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) as adopted by the European Union (EU).

The consolidated financial statements were prepared in accordance with the same standards and accounting policies adopted by the Group in the preparation of the annual financial statements, except for the adoption of new standards, amendments and interpretations, effective as of 1 January 2021, and including an explanation of the events and relevant changes for the understanding of variations in the financial position and Group performance since the last annual report. Thus, the accounting policies as well as some of the notes from the 2020 annual report are omitted because no changes occurred, or they are not materially relevant for the understanding of the interim financial statements.

Change in accounting policies and basis for preparation:

2.1.1. New standards, amendments and interpretations adopted by the Group

Between December 2020 and January 2021, the EU issued the following Regulations, which were adopted by the Group with effects from 1 January 2021:

EU Regulation	IASB Standard or IFRIC Interpretation endorsed by EU	Issued in	Mandatory for financial years beginning on or after
Regulation no. 2097/2020	IFRS 4 Insurance Contracts (will be superseded by IFRS 17): Extension of the Temporary Exemption from Applying IFRS 9 (amendments)	June 2020	1 January 2021
Regulation no. 25/2021	IFRS 9 Financial Instruments; IAS 39 Financial Instruments: Recognition and Measurement; IFRS 7 Financial Instruments: Disclosures; IFRS 4 Insurance contract; and IFRS 16 Leases – Interest Rate Benchmark Reform – Phase 2 (amendments)	August 2020	1 January 2021

The Group adopted the above amendments, with no significant impact on its Consolidated Financial Statements.

2.1.2. New standards, amendments and interpretations endorsed by EU but not effective for the financial year beginning 1 January 2021 and not early adopted

The EU endorsed in June 2021 several amendments, issued by the IASB, to be applied in subsequent periods.

EU Regulation	IASB Standard or IFRIC Interpretation endorsed by EU	Issued in	Mandatory for financial years beginning on or after
Regulation no. 1080/2021	IFRS 3 Business Combinations: References to the Conceptual Framework (amendments) IAS 16 Property, Plant and Equipment: Income prior to expected use (amendments) IAS 37 Provisions, Contingent Liabilities and Contingent Assets: Costs of fulfilling onerous contracts (amendments) 2018-2020 cycle of improvements to the IFRS standards: IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IFRS 16 Leases and IAS 41 Agriculture (amendments)	May 2020	1 January 2022

These amendments are effective for annual periods beginning on or after 1 January 2022 and have not been applied in preparing these Consolidated Financial Statements. None of these changes are expected to have a significant impact on the Group's Consolidated Financial Statements.

2.1.3. New standards, amendments and interpretations issued by IASB and IFRIC, but not yet endorsed by EU

IASB issued between February and May 2021 the following amendments that are still pending endorsement by the EU:

IASB Standard or IFRIC Interpretation	Issued in	Expected application for financial years beginning on or after
IAS 1 Presentation of Financial Statements: Classification Disclosure of Accounting policies (amendments)	February 2021	1 January 2023
IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (amendments)	February 2021	1 January 2023
IFRS 16 Leases: Covid-19-Related Rent Concessions beyond 30 June 2021 (amendments)	March 2021	1 April 2021
IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (amendments)	May 2021	1 January 2023

The Management is currently evaluating the impact of adopting these amendments to standards already in place, and so far does not expect a significant impact on the Group's Consolidated Financial Statements.

2.1.4. Change of accounting policies

Except as disclosed above, the Group has not changed its accounting policies during 2021, nor were identified errors regarding previous years, which compel the restatement of Financial Statements.

2.2. Transactions in foreign currencies

Transactions in foreign currencies are translated into the functional currency (euro) at the exchange rate prevailing on the transaction date.

At the balance sheet date, monetary assets and liabilities expressed in foreign currencies are translated at the exchange rate prevailing on that date and exchange differences arising from this conversion are recognised in the income statement. When qualifying as cash flow hedges or hedges on investments in foreign subsidiaries or when classified as other financial investments, which are equity instruments, the exchange differences are deferred in equity.

The main exchange rates applied on the balance sheet date are those listed below:

Euro foreign exchange reference rates (x foreign exchange units per 1 euro)	Polish Zloty (PLN)	Colombian Peso (COP)
Rate at 30 June 2021	4.5201	4,464.4300
Average rate for the 1st semester	4.5381	4,370.6600
Rate at 30 June 2020	4.4560	4,209.2300
Average rate for the 1st semester	4.4142	4,047.2000

3. Segments reporting

Segment information is presented in accordance with internal reporting to Management. Based on this report, the Management evaluates the performance of each segment and allocates the available resources.

Management monitors the performance of the business based on a geographical and business perspective. In accordance with this, the segments are defined as Portugal Retail, Portugal Cash & Carry, Poland Retail and Colombia Retail. Apart from these there are also other businesses which due to their low materiality, are not reported separately.

The identified operating segments are:

Portugal Retail: comprises the business unit of JMR (Pingo Doce supermarkets);
Portugal Cash & Carry: includes the business unit Recheio (Wholesale operation of cash & carry and foodservice);
Poland Retail: the business unit which operates under Biedronka banner;
Colombia Retail: the business unit which operates under Ara banner;
Others, eliminations and adjustments: include i. business units with reduced materiality (Coffee Shops Chocolate Stores and Agribusiness in Portugal, and Health and Beauty Retail in Poland); ii. the Holding Companies; and iii. Group's consolidation adjustments.

Detailed information by operating segments as at June 2021 and 2020

	Portugal Retail		Portugal Cash & Carry		Poland Retail		Colombia Retail		Others, eliminations and adjustments		Total JM Consolidated
	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Net sales and services	2,105,378	2,027,753	398,085	399,801	6,981,463	6,535,652	473,484	423,091	(55,991)	(69,701)	9,902,419	9,316,596
Inter-segments	183,458	186,120	1,801	1,836	‐	859	‐	‐	(185,259)	(188,815)	‐	‐
External customers	1,921,920	1,841,633	396,284	397,965	6,981,463	6,534,793	473,484	423,091	129,268	119,114	9,902,419	9,316,596
Operational cash flow (EBITDA)	111,508	93,531	14,644	12,585	624,409	589,180	6,091	(19,056)	(42,006)	(41,600)	714,646	634,640
Depreciations and amortisations	(76,258)	(75,425)	(9,609)	(10,269)	(238,541)	(232,706)	(24,797)	(24,316)	(22,002)	(18,806)	(371,207)	(361,522)
Earnings before interest and taxes (EBIT)	35,250	18,106	5,035	2,316	385,868	356,474	(18,706)	(43,372)	(64,008)	(60,406)	343,439	273,118
Other operating profits/losses											(5,635)	(20,346)
Financial results and gains in investments											(74,197)	(95,604)
Income tax											(69,720)	(53,958)
Net result attributable to JM											186,355	104,140
Total assets (1)	2,192,468	2,231,469	446,833	426,246	5,329,558	5,639,797	726,899	760,113	670,330	370,285	9,366,088	9,427,910
Total liabilities (1)	1,704,753	1,725,169	450,751	424,294	4,470,103	4,531,354	715,012	752,972	(231,837)	(263,070)	7,108,782	7,170,719
Investments in tangible and intangible assets	23,774	36,906	10,157	8,258	115,038	61,118	18,969	9,009	13,126	26,256	181,064	141,547

(1) The comparative report is 31 December of 2020

Reconciliation between EBIT and operating profit

	2021	2020
EBIT	343,439	273,118
Other operating profits/losses	(5,635)	(20,346)
Operational result	337,804	252,772

4. Operating costs by nature

	Jun 2021	Jun 2020
Cost of goods sold and materials consumed	(7,655,911)	(7,269,222)
Changes in inventories of finished goods and work in progress	5,460	812
Net cash discount and interest paid to suppliers	15,956	13,547
Electronic payment commissions	(22,636)	(20,236)
Other supplementary costs	(98,824)	(2,959)
Supplies and services	(368,716)	(368,041)
Advertising costs	(48,057)	(43,546)
Rents	(8,912)	(6,515)
Staff costs	(905,925)	(875,365)
Transportation costs	(107,825)	(97,457)
Depreciation and amortisation of tangibles and intangibles assets	(212,557)	(203,565)
Depreciation of right-of-use assets	(158,650)	(157,957)
Profit/loss with tangible and intangible assets	(2,291)	(3,693)
Profit/loss with right-of-use assets	450	430
Other natures of profit/loss	3,823	(30,057)
Total	(9,564,615)	(9,063,824)

The increase in Other supplementary costs, compared to the first half of 2020, is essentially due to the "Retail tax", a tax applied on the sales of Group companies operating in Poland, since the beginning of 2021.

4.1. Other operating profits/losses

Operating costs by nature include the following other operating losses and gains considered material, which are excluded from the Group's performance indicators, to assure a better comparability between financial periods:

	Jun 2021	Jun 2020
Legal contingencies	(404)	‐
Losses from organizational restructuring programmes	(4,517)	(5,358)
Costs related with activities closure and projects canceled	‐	(6,464)
Assets write-offs and gains/losses in sale of tangible assets	(714)	(827)
Impairment losses on current assets	‐	(5,871)
Other	‐	(1,826)
Total	(5,635)	(20,346)

5. Net financial costs

	Jun 2021	Jun 2020
Loans interest expense	(8,476)	(12,494)
Leases interest expense	(64,179)	(63,319)
Interest received	141	2,076
Net foreign exchange	(825)	(4,642)
Net foreign exchange on leases	2,569	(14,439)
Other financial gains and losses	(2,276)	(3,203)
Fair value of financial investments held for trade:
Derivative instruments (note 8)	(1,146)	505
Total	(74,192)	(95,516)

Interest expense includes the interest on loans measured at amortised cost and interest on derivatives of fair-value hedge and cash flow hedge (note 8).

Exchange differences on Net foreign exchange on leases refer to the exchange rate update, reported on 30 June, on the euro-denominated lease contracts of the subsidiaries Jeronimo Martins Polska, SA (JMP or Biedronka) and Jeronimo Martins Drogerie i Farmacja Sp.zo.o. (JMDiF or Hebe), compared to the amount recognised at the end of the previous year (31 December).

Other financial gains and losses include costs with debt issued by the Group, recognised in results through effective interest method.

6. Income tax recognised in the income statement

	Jun 2021	Jun 2020
Current income tax
Current tax of the year	(83,482)	(79,445)
Adjustment to prior year estimation	3,151	1,699
Total	(80,331)	(77,746)
Deferred tax
Temporary differences created and reversed	12,380	22,626
Change to the recoverable amount of tax losses and temporary differences from previous years	(1,859)	488
Total	10,521	23,114
Other gains/losses related to tax
Impact of changes in estimates for tax litigations	90	674
Total	90	674
Total income tax	(69,720)	(53,958)

In 2021 and 2020, the Corporate Income Tax rate (CIT) applied to companies operating in Portugal was 21%. For companies with a positive tax result, there is a surcharge of 1.5% regarding municipal tax, and an additional state tax that varies between 3%, 5% and 9%, for taxable profits higher than EUR 1,500 thousand, EUR 7,500 thousand and EUR 35,000 thousand respectively.

In Poland, for 2021 and 2020, the income tax rate applied to taxable income was 19%.

In Colombia, the income tax rate was 31% in 2021 (32% in 2020). In 2021, if a taxable loss is determined, a tax rate of 0.5% is levied on the net asset value (0.5% in 2020).

7. Tangible assets, intangible assets, investment property and right-of-use assets

	Tangible assets	Intangible assets	Investment property	Right-of-use assets	Total
Net value at 31 December 2020	3,817,255	757,368	8,523	2,166,551	6,749,697
Foreign exchange differences	(2,770)	3,488	‐	(1,229)	(511)
Increases	174,852	6,212	-	102,756	283,820
Contracts update	‐	‐	‐	101,577	101,577
Disposals and write-offs	(2,730)	(101)	-	(22)	(2,853)
Contracts cancellation	‐	‐	‐	(10,382)	(10,382)
Transfers	224	(224)	‐	‐	‐
Depreciation, amortisation and impairment losses	(206,243)	(6,314)	-	(158,650)	(371,207)
Fair value changes	‐	‐	(21)	‐	(21)
Net value at 30 June 2021	3,780,588	760,429	8,502	2,200,601	6,750,120

The increase in tangible assets correspond to the Group's investments in new stores and distribution centres and remodelling of the existing stores.

Net value of intangible assets at 30 June 2021 include Goodwill in the amount of EUR 622,626 thousand.

Due to currency translation adjustment of the assets in the Group's businesses reported in foreign currency, the net amount of tangible and intangible assets and right-of-use assets decreased by EUR (511) thousand, which includes an increase of EUR (2,539) thousand related to Goodwill from businesses in Poland.

8. Derivative financial instruments

8. Derivative financial instruments
		J un 2 0 2 1				De c 2 0 2 0
	Not i ona l	Asse	t s	Li a bi l	i t i e s	Not i ona l	Asse	t s	Li a bi l	i t i e s
		Cur r e nt	Non c ur r e nt	Cur r e nt	Non c ur r e nt		Cur r e nt	Non c ur r e nt	Cur r e nt	Non c ur r e nt
De r i v a t i v e s he l d f or t r a di ng
Currency f orwards - st ock purchase (COP/ EUR)	2.4 million EUR	-	-	45	-	1.3 million EUR	1	-	19	-
Currency f orwards - st ock purchase (COP/ USD)	3.2 million USD	71	-	5	-	1.6 million USD	-	-	83	-
Currency f orwards - st ock purchase (EUR/ USD)	0.4 million USD	-	-	3	-	0.5 million USD	1	-	3	-
Currency f orwards - st ock purchase (PLN/ EUR)	118 million EUR	493	-	192		- 41.9 million EUR	1.607	-	-	-
Currency f orwards - st ock purchase (PLN/ USD)	2 million USD	37	-	-	-	0.7 million USD	-	-	15	-
Ca sh f l ow he dgi ng de r i v a t i v e s
Currency f orwards - st ock purchase (PLN/ USD)	6.4 million USD	138	-	-	-	3 million USD	22	-	-	-
Currency f orwards - st ock purchase (PLN/ USD)	3 million EUR	19	-	1	-	-	-	-	-	-
For e i gn ope r a t i on i nv e st me nt s he dgi ng de r i v a t i v e s
Currency f orwards (PLN)	340 million PLN	134	-	737		- 656 million PLN	1.980	-	284	-
Tot a l de r i v a t i v e s he l d f or t r a di ng		6 0 1	-	2 4 5	-		1.6 0 9	-	12 0	-
Tot a l he dgi ng de r i v a t i v e s		2 9 1	-	73 8	-		2 .0 0 2	-	284	-
Tot a l a sse t s/ l i a bi l i t i e s de r i v a t i v e s		892	-	983	-		3 .6 11	-	404	-

9. Trade debtors, accrued income and deferred costs

	Jun 2021	Dec 2020
Non-current
Other debtors	68,365	67,449
Deferred costs	2,694	2,889
Total	71,059	70,338
Current
Commercial customers	44,117	42,827
Other debtors	119,067	117,175
Other taxes receivable	10,695	8,040
Accrued income and deferred costs	199,996	224,981
Total	373,875	393,023

10. Cash and cash equivalents

	Jun 2021	Dec 2020
Bank deposits	839,908	753,030
Short-term investments	88,930	284,174
Cash in hand	4,179	4,186
Total	933,017	1,041,390

11. Dividends

Dividends in the amount of EUR 198,188 thousand were attributed in 2021, to JMH shareholders in the amount of EUR 180,989 thousand and to partners with non-controlling interests in the Group companies in the amount of EUR 17,199 thousand.

12. Basic and diluted earnings per share

	Jun 2021	Jun 2020
Ordinary shares issued at the beginning of the year	629,293,220	629,293,220
Own shares at the beginning of the year	(859,000)	(859,000)
Weighted average number of ordinary shares	628,434,220	628,434,220
Diluted net results of the year attributable to ordinary shares	186,355	104,140
Basic and diluted earnings per share – Euros	0.2965	0.1657

13. Borrowings

The Group has negotiated commercial paper programs in the total amount of EUR 365,000 thousand, of which EUR 115,000 thousand are committed. The utilizations under these programs are remunerated at the Euribor rate for the respective issue period, plus variable spreads. No utilizations as of 30 June 2021.

The credit lines that Jerónimo Martins Colombia, SAS holds with local banks were increased for an amount above m COP 110,000,000, around EUR 25,000 thousand, with an average maturity of 1 year.

13.1. Current and non-current loans

Jun 2021	Opening balance	Cash flows	Foreign exchange difference	Closing balance
Non-current loans
Bank loans	363,798	(8,394)	(6,324)	349,080
Total	363,798	(8,394)	(6,324)	349,080
Current loans
Bank loans	159,730	6,932	(8,999)	157,663
Total	159,730	6,932	(8,999)	157,663

14. Lease liabilities

Jun 2021	Current	Non-current	Total
Opening balance	376,694	1,896,547	2,273,241
Increases (new contracts)	16,064	86,692	102,756
Payments	(144,560)	(1)	(144,561)
Transfers	122,288	(122,288)	‐
Contracts change/ cancel	14,019	76,726	90,745
Foreign exchange difference	298	(4,286)	(3,988)
Closing balance	384,803	1,933,390	2,318,193

During the first half of 2021, the incremental borrowing rates used to measure lease liabilities were revised, considering changes in the financial markets. Nevertheless, the average incremental borrowing rate at 30 June 2021 did not change comparing to the one at 31 December 2020.

15. Financial net debt

As the Group contracted several foreign exchange rate risk and interest risk hedging operations, as well as short-term investments, the net consolidated financial debt as at the balance sheet date is:

	Jun 2021	Dec 2020
Non-current loans (note 13.1)	349,080	363,798
Current loans (note 13.1)	157,663	159,730
Financial lease liabilities - non-current (note 14)	1,933,390	1,896,547
Financial lease liabilities - current (note 14)	384,803	376,694
Derivative financial instruments (note 8)	91	(3,207)
Interest on accruals and deferrals	113	272
Cash and cash equivalents (note 10)	(933,017)	(1,041,390)
Total	1,892,123	1,752,444

16. Provisions and employee benefits

	Risks and contingencies	Employee benefits
Balance as at 1 January	32,831	70,079
Set up, reinforced and transfers	1,112	4,096
Unused and reversed	(246)	‐
Foreign exchange difference	10	231
Used	(216)	(1,607)
Balance as at 30 June	33,491	72,799

17. Trade creditors, accrued costs and deferred income

	Jun 2021	Dec 2020
Non-current
Other commercial creditors	‐	91
Accrued costs and deferred income	676	688
Total	676	779
Current
Other commercial creditors	3,181,960	3,255,756
Other non-commercial creditors	225,784	278,645
Other taxes payables	137,066	115,682
Contracts liabilities with customers	5,953	6,885
Refunds liabilities to customers	396	629
Accrued costs and deferred income	542,374	496,240
Total	4,093,533	4,153,837

18. Contingencies

Contingent liabilities

As at 30 June 2021, the following changes occurred to the contingencies mentioned in the 2020 Annual Report:

• In Portugal, following search and seizure actions carried out in late 2016 and early 2017 in several entities operating in the food distribution sector, the Portuguese Competition Authority (AdC) determined the opening of several inquiries, in the scope of which it came to issue against suppliers and retailers, including the subsidiary Pingo Doce, eight statements of objections for alleged anti-competitive practices, consisting of price alignment for certain products.

At the end of 2020, Pingo Doce was notified of decisions issued by AdC regarding two of the above-mentioned proceedings, imposing fines on six retailers and two of their suppliers. In the case of Pingo Doce these decisions implied a single fine in the amount of EUR 91,090 thousand.

Pingo Doce totally disagrees with such decisions which it considers to be completely ungrounded. As such, the Company has already presented the respective appeals before the Competition, Regulation and Supervision Court ("Tribunal da Concorrência, Regulação e Supervisão"). Under the terms of the applicable law, Pingo Doce also requested the awarding of suspensive effect to the appeals, subject to providing a guarantee, to prevent the immediate payment of the fine. Based on the opinion of its legal counsels and economic advisors, the Company is fully convinced of the strength and merits of its position. Therefore, no provisions were recognised for this imposed fine in its accounts.

As to the remaining six proceedings, Pingo Doce has already filed the respective statements of defense - as it considers all the statements of objections to be ungrounded – and will wait for the respective decisions from AdC.

• In Poland, during the year 2020, JMP was notified by the Competition and Consumer Protection (UOKiK) on the opening of two proceedings related, on one hand, to the accuracy of the promotions' information on the Company's website and, on the other, to the disclosure of country of origin of fruit and vegetable products at store level.

In the case of promotions a commitment was reached with the UOKiK, which consisted in organizing educational campaigns for consumers who, as a result of their participation, they can receive discount vouchers on purchases. The total amount of these vouchers amounts to PLN 7,500 thousand. No fine was imposed.

On 22 April 2021 UOKiK notified JMP of the decision on the case regarding information on products' country of origin, imposing a fine of PLN 60,096 thousand (c. EUR 13,000 thousand). The mentioned decision is not final, so JMP, disagreeing with the understanding and conclusion of this Authority, filed an appeal.

a) The Portuguese Tax Authorities (PTA) have informed Recheio SGPS that it should restate the dividends received, amounting to EUR 81,952 thousand, from its subsidiary in the Madeira Free Zone in the years 2000 to 2003, considering them as interest for tax purposes. According to the PTA the said income should be subject to Corporate Income Tax (CIT) as opposed to dividends received that are exempt. The PTA have issued additional assessments, amounting to EUR 20,888 thousand, of which EUR 19,581 thousand is still in dispute. In spite of a judicial claim that was ruled in favour of the PTA, the Board of Directors maintains its convictions and claimed against them judicially. The Central Administrative Court has now ruled in favor of Recheio, althought the PTA has claimed against that decision;

d) The PTA have informed JMH, to restate the dividends received, amounting to EUR 10,568 thousand, from one subsidiary in the Madeira Free Zone in 2004 and 2005, considering them as interest for tax purposes. According to the PTA the said income should be subject to CIT as opposed to the dividends received that are exempt. Regarding this correction the tax amount in dispute is EUR 3,065 thousand. The Central Administrative Court decided that the Lisbon Tax Court should again reanalyze the case, and regarding 2004 this Court already ruled in favor of JMH;
h) The PTA assessed, regarding 2016 and 2017, JMR SGPS and JMH (as the head of the Tax Group in which Recheio SGPS is included), the amounts of EUR 78,902 thousand and EUR 19,972 thousand, respectively, related to the taxation in CIT of ¼ of the results generated in internal operations of the Tax Group, in each of these years. As explained in the 2018 Annual Report (and previous years), this assessment results from the application of the transitional rule included in the Portuguese State Budget of 2016 (and then in the next three Budgets). Based on the assessment of our lawyers and fiscal advisors, we firmly believe that there are sufficient grounds to oppose the said rules. Therefore, no provisions have been made for the amount assessed;
i) The Food and Veterinary Department (Direcção-Geral de Alimentação e Veterinária) claimed from Pingo Doce, Recheio and Hussel an amount of EUR 23,832 thousand, EUR 2,226 thousand and EUR 51 thousand, respectively, in respect of the Food Safety Tax (Taxa de Segurança Alimentar Mais – TSAM) assessed for the years 2012 to 2021. The values at stake have been challenged in Court, since it is understood that this tax is not due, namely on the grounds of the unconstitutional nature of the Statute that approved the TSAM. Despite the court having decided that the Food Safety Tax is not unconstitutional, the Companies maintain their understanding and presented the respective appeal to the Constitutional Court, that has upheld the decision. The Group filed a complaint with the European Commission considering that we are in the presence of illegal State aid. The companies of the Group continue to challenge the decisions, carrying out regular analysis of the risk and the likelihood of a favourable outcome in any of the processes and / or the complaint to the European Commission. In order to protect its legitimate interests and not to harm its position in these disputes, it does not disclose the amounts that could be provisioned;
In addition, there were two new contingent liabilities:

The PTA assessed JMR SGPS, regarding 2017, the amount of EUR 11,084 thousand, regarding the restate of the dividends received in the year 2017, amounting to approximately EUR 45,000 thousand, from one subsidiary in the Madeira Free Zone in 2017. In the opinion of PTA, these dividends should be treated as interest received, which is subject to CIT as opposed to the dividends that are exempt. In view of some specific technical aspects of this case and recent Court decisions (see paragraphs a) and d) above), the Board of Directors, supported by its lawyers and tax advisers, believes the Company has sufficient grounds for its defense;

The court trustee of the company ZM Kania has brought a lawsuit against JMP for the amount of PLN 23,247 thousand (EUR 5,131 thousand). The claim is based on all the discounts that JMP collected from this supplier in the period 2016-2019 with grounds on the Unfair competition act (all granted rappels are argued as not constituting a price element) and on the Law on protection of competition and consumers. JMP considers that it has strong arguments to generally counter the amounts claimed.

19. Related parties

56.136% of the Group is owned by the Sociedade Francisco Manuel dos Santos, B.V. (SFMS). There were no direct transactions between this and any other company of the Group in the first semester of 2021.

There were no amounts payable or receivable between them on 30 June 2021.

Balances and transactions of Group Companies with related parties are as follows:

	Joint ventures		Associates		Other related parties(*)
	Jun 2021	Jun 2020	Jun 2021	Jun 2020	Jun 2021	Jun 2020
Sales and services rendered	‐	‐	9,335	-	5	37
Interest income	27	31	‐	‐	‐	‐
Stocks purchased and services supplied	2,658	2,356	(34)	-	47,092	43,869
	Joint ventures		Associates		Other related parties(*)
	Jun 2021	Dec 2020	Jun 2021	Dec 2020	Jun 2021	Dec 2020
Trade debtors, accrued income and deferred costs	16	50	3,445	-	55	107
Trade creditors, accrued costs and deferred income	916	735	‐	-	23,814	18,365

(*) Other related parties corresponds to Other financial investments, entities participated and/or controlled by the major shareholder of Jerónimo Martins and entities owned or controlled by members of the Board of Directors.

All the transactions with related parties were made under normal market conditions, meaning, the transaction value corresponds to prices that would be applicable between non-related parties.

Outstanding balances between Group Companies and related parties, as a result of trade agreements, are settled in cash, and are subject to the same payment terms as those applicable to other agreements contracted between Group Companies and their suppliers.

There are no provisions for doubtful debts and no costs were recognised during the year related with bad debts or doubtful debts with these related parties.

20. Events after the balance sheet date

On 26 July 2021, JMH took an 8% share, for CHF 240 thousand (equivalent to EUR 222 thousand), in the capital of the company Epic Partners SA, with headquarters in Geneva, Switzerland. This company aims to provide services in the retail and consumer goods sector to its shareholders.

Lisbon, 27 July 2021

The Certified Accountant The Board of Directors

2. Statement of the Board of Directors

Statement of the Board of Directors

Within the terms of paragraph c) n.1 of article 246 of Portuguese Securities Code, we hereby inform you that to the best of our knowledge:

i) the information contained in the interim management report is a faithful statement of the evolution of the businesses, of the performance and of the position of Jerónimo Martins, SGPS, S.A. and the companies included within the consolidation perimeter, and contains a description of the main risks and uncertainties which they face; and
ii) the information contained in the consolidated financial statements, as well as their annexes, was produced in compliance with the applicable accounting standards and gives a true and fair view of the assets and liabilities, the financial situation and the results of Jerónimo Martins, SGPS, S.A. and the companies included in the consolidation perimeter.

Lisbon, 27 July 2021

Pedro Manuel de Castro Soares dos Santos (Chairman of the Board of Directors and Chief Executive Officer)

Andrzej Szlezak (Member of the Board of Directors)

António Pedro de Carvalho Viana-Baptista (Member of the Board of Directors)

Artur Stefan Kirsten (Member of the Board of Directors)

Clara Christina Streit (Member of the Board of Directors and Member of the Audit Committee)

Elizabeth Ann Bastoni (Member of the Board of Directors and Member of the Audit Committee)

Francisco Seixas da Costa (Member of the Board of Directors)

José Soares dos Santos (Member of the Board of Directors)

María Ángela Holguín (Member of the Board of Directors)

Sérgio Tavares Rebelo (Member of the Board of Directors and Chairman of the Audit Committee)

Ernst & Young Audit & Associados - SROC, S.A. Avenida da República, 90-6º 1600-206 Lisboa Portugal

(Translation from the original Portuguese language. In case of doubt, the Portuguese version prevails.)

Limited review report on the consolidated financial statements

Introduction

We have performed a limited review on the consolidated financial statements of Jerónimo Martins, S.G.P.S., S.A., which comprise the consolidated statement of financial position as at 30 June 2021 (showing a total of 9.366.088 thousand Euros and a shareholder's equity total of 2.257.306 thousand Euros, including a consolidated net profit attributable to equity holders of the parent of 186.355 thousand Euros), consolidated income statement by functions, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the six month period then ended, and the notes to the consolidated financial statements which includes a summary of significant accounting policies.

Board of Directors responsibilities

The Board of Directors is responsible for the preparation of the consolidated financial statements in accordance with the International Financial Reporting Standards as endorsed by the European Union for Interim Financial Reporting (IAS 34), and for the design and maintenance of an appropriate system of internal control to enable the preparation of consolidated financial statements which are free from material misstatement due to fraud or error.

Auditor's Responsibilities

Our responsibility is to express an opinion on these consolidated financial statements based on our review. We conducted our review in accordance with the International Standard on Review Engagements 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity, and other rules and technical and ethical requirements issued by the Institute of Statutory Auditors. Those standards require that our work is performed in order to conclude that nothing has come to our attention that causes us to believe that the consolidated financial statements have not been prepared in all material respects in accordance with the International Financial Reporting Standards as endorsed by the European Union for Interim Financial Reporting (IAS 34)

A review of financial statements is a limited assurance engagement. The procedures performed consisted primarily of making inquiries of management and others within the entity, as appropriate, and applying analytical procedures, and evaluating the evidence obtained.

The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on these consolidated financial statements.

Conclusion

Based on our review procedures, nothing has come to our attention that causes us to believe that the consolidated financial statements of Jerónimo Martins, S.G.P.S., S.A., as at 30 June 2021, have not been prepared, in all material respects, in accordance with the International Financial Reporting Standards as endorsed by the European Union for Interim Financial Reporting (IAS 34).

Lisbon, 05 August 2021

Ernst & Young Audit & Associados – SROC, S.A. Sociedade de Revisores Oficiais de Contas (n.º 178) Represented by:

(Signed)

João Carlos Miguel Alves - ROC n.º896 Registered with the Portuguese Securities Market Commission under license nr 20160515

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Jeronimo Martins — Interim / Quarterly Report 2021

1906_ir_2021-08-25_95a900b4-bda2-46b3-9f79-67215b9dd6d7.pdf

CONSOLIDATED REPORT AND ACCOUNTS

INDEX

Message from the Chairman and CEO

I - CONSOLIDATED MANAGEMENT REPORT

Strong sales performance driving profitability

1. Performance Overview & Key Drivers

H1 I KEY FIGURES

Key Updates

2. Performance Analysis by Banner

POLAND

PORTUGAL

COLOMBIA

3. Consolidated Financial Information Analysis

Consolidated Results

Balance Sheet

Cash Flow

Capex

4. Second Quarter 2021 update on Covid-19 Impact

5. Outlook for 2021

6. Consolidated Management Report Appendix

6.1. The impact of IFRS 16 on Financial Statements

Income Statement by Functions

Income Statement (Management View)

Balance Sheet

Cash Flow

EBITDA Breakdown

Financial Results

6.2. Sales Detail

Sales Growth

6.3. Stores Network

6.4. Working Capital

6.5. Total Borrowings

6.6. Definitions

7. Management Report Annex

List of Shareholders with Qualifying Holdings as at 30th June 2021*

8. Reconciliation Note

Income Statement

Balance Sheet

9. Information Regarding Individual Financial Statements

II - Consolidated Financial Statements

1. Consolidated Financial Statements

CONSOLIDATED INCOME STATEMENT BY FUNCTIONS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED BALANCE SHEET

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

CONSOLIDATED CASH FLOW STATEMENT

For the periods ended 30 June 2021 and 2020

1. Activity

Covid-19

Financial risks

Recoverability of tangible and intangible assets and investment property

Changes to the consolidation perimeter

Subsidiaries

2. Accounting policies

2.1. Basis for preparation

Change in accounting policies and basis for preparation:

2.1.1. New standards, amendments and interpretations adopted by the Group

2.1.2. New standards, amendments and interpretations endorsed by EU but not effective for the financial year beginning 1 January 2021 and not early adopted

2.1.3. New standards, amendments and interpretations issued by IASB and IFRIC, but not yet endorsed by EU

2.1.4. Change of accounting policies

2.2. Transactions in foreign currencies

3. Segments reporting

Detailed information by operating segments as at June 2021 and 2020

Reconciliation between EBIT and operating profit

4. Operating costs by nature

4.1. Other operating profits/losses

5. Net financial costs

6. Income tax recognised in the income statement

7. Tangible assets, intangible assets, investment property and right-of-use assets

8. Derivative financial instruments

9. Trade debtors, accrued income and deferred costs

10. Cash and cash equivalents

11. Dividends

12. Basic and diluted earnings per share

13. Borrowings

13.1. Current and non-current loans

14. Lease liabilities

Jeronimo Martins Interim / Quarterly Report 2021