Jeronimo Martins — Interim / Quarterly Report 2023

Aug 29, 2023

Jerónimo Martins | R&A First Half 2023

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	4
3. Consolidated Financial Information Analysis	6
4. Outlook for 2023	7
5. Management Report Appendix	9
5.1. The Impact of IFRS 16 on Financial Statements	9
5.2. Sales Detail	10
5.3. Stores Network	11
5.4. Working Capital	11
5.5. Total Borrowings and Financial Leases	12
5.6. Definitions	12
6. Reconciliation Notes	13
7. Information Regarding Individual Financial Statements	15

II – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Consolidated Financial Statements	16
2. Statement of Board of Directors	30
3. Auditor´s Report	31

Message from the Chairman and CEO

Pedro Soares dos Santos

'The good results for the first six months reflect the determination and ability of all our Companies in executing, with discipline, the defined strategy and reinforcing their price leadership and competitive positions in the respective markets.

We know that in uncertain times with intense pressure on real household disposal income, it is essential to continuously provide the best saving opportunities by strongly investing in price to guarantee that consumers choose our stores. We must also execute the expansion plans to reinforce proximity and convenience while investing in refurbishments to improve our stores' attractiveness and shopping experience. All this to capture the networks' growth potential.

In line with what I have always said, we will not hesitate to leverage our financial strength to maintain the flexibility and capacity to make a positive difference in the markets where we operate, as we did in Colombia in Q2.

Our priorities remain unchanged: to be the first choice of an increasingly fragile consumer, to grow sales, to reinforce efficiency, and to protect the profitability and sustainability of our businesses while continuing to invest in our teams.'

I - CONSOLIDATED MANAGEMENT REPORT

1. Performance Overview & Key Drivers

In a demanding period of economic slowdown with consumers more price sensitive than ever, the Group maintained sales growth as a strategic priority. Investments made by the different banners to strengthen their competitiveness were crucial to limit the effects of trading-down, protect volumes, and reduce food inflation in the countries where we operate.

In Poland, in a market with declining volumes, Biedronka intensified its commercial dynamics and delivered a remarkable performance, adding 2 billion euros to its sales in the six months period and, once again, gaining market share.

In Portugal, Pingo Doce delivered solid growth, primarily driven by its aggressive pricing policy and by the contribution of meal solutions. Recheio presented a very good performance, raising profitability back to pre-pandemic levels.

In Colombia, where the environment is extremely difficult for households, Ara surpassed its commitment of having the best prices in the market. To celebrate its 10th anniversary, the banner took a bold step by initiating a ground-breaking savings campaign in May. This campaign increased traffic and sales volume, reinforcing price perception and strengthening our market position.

As anticipated, following price investments and cost inflation in the three countries, the Group EBITDA margin fell 24b.p. versus H1 22 (a decline of 28b.p. in Q2). Nevertheless, our steady commitment to price competitiveness and sales growth drove a solid EBITDA throughout the period.

At the end of June, after the dividend payment of 345.6 million euros, the Group's net cash position (excluding IFRS 16) was 721 million euros.

2. Performance Analysis by Banner

POLAND

In Poland, food inflation reached 20.8% in H1 23 (22.9% in Q1 and 18.8% in Q2). Consumer demand has weakened since the end of last year, with families becoming more price sensitive.

Biedronka kept reinforcing its price competitiveness, implementing an unstoppable commercial dynamic. In Q2, the Group's main banner increased the gap

between its basket inflation and the country's food inflation.

This effort continued to be recognized by Polish consumers, and the banner added 2 billion euros to its sales, grew volumes, and continued to gain market share.

In H1, sales grew 24.0% in local currency, with LFL at 20.5%. In euros, sales reached 10.3 billion, 24.5% above H1 22. When considering Q2, sales in local currency grew 20.4%, with LFL standing at 17.0%. In euros, sales reached 5.5 billion, 23.1% above Q2 22.

The strong sales growth drove EBITDA to increase by 21.0% (+20.5% in

local currency). The price investment and cost inflation, particularly high in labour, pressured the EBITDA margin to decline by 24b.p. to 8.5%.

Biedronka opened 50 stores in the first six months of the year (37 net additions) and remodelled 164 locations.

Hebe's sales in local currency grew 27.5% in H1, with LFL at 17.9%. In euros, sales reached 208 million, 27.9% above H1 22.

In Q2, sales grew 24.0% in local currency, with LFL at 14.2%. In euros, sales reached 115 million, 26.7% above Q2 22.

EBITDA grew 37.5% (+37.0% in local currency), with the respective margin reaching 6.8% (6.3% in H1 22). Operational leverage limited the impact on EBITDA of the investment required to launch the banner's online operations in new geographies.

Hebe opened 12 stores over the period (eight net additions) and ended H1 with 323 stores.

PORTUGAL

In Portugal, food inflation was 15.6% in H1. It fell from 20.5% in Q1 to 11.1% in Q2.

General price increases and higher interest rates reduced real household disposable income, weakening demand and leading to trading-down in food.

Tourism growth remained solid throughout the period driving HoReCa channel performance.

Pingo Doce maintained its strong promotional activity and delivered good sales growth despite the significant impact of trading-down in the food basket.

Sales in H1 grew 8.6%, with LFL at 8.2% (excluding fuel), reaching 2.3 billion euros. In Q2, sales increased 7.8%, with LFL at 8.0% (excluding fuel), reaching 1.2 billion euros.

EBITDA grew 7.6% to reach 129 million euros, with the respective margin at 5.7% (5.8% in H1 22). The good sales performance diluted the impact of higher costs.

Pingo Doce opened six new stores, closed one, and remodelled 20 locations during the period. At the end of the period, six stores undergoing remodelling works remained closed.

Recheio continued to reinforce its value propositions for the different customer segments and to take advantage of the HoReCa channel dynamics in Portugal.

Sales reached 632 million euros in H1, an increase of 23.2% vs. the same period of the prior year, with LFL at 21.2%.

In Q2, sales grew 18.3% to 337 million euros, with LFL at 16.4%. The slowdown of LFL performance reflected the tough comparable base of Q2 22 when strict traveling restrictions on tourism were lifted and ceased to impact HoReCa.

EBITDA reached 32 million euros, 35.4% above H1 22, with the respective margin recovering to pre-pandemic levels and standing at 5.1%

COLOMBIA

In Colombia, food inflation was 19.9% in H1 (24.0% in Q1 and 16.1% in Q2), below 20% for the first time in 14 months.

In food retail, a contraction in consumer demand is evident, with intense pressure over volumes and increasing tradingdown trends.

Ara has consistently invested in its price leadership, gaining consumers' recognition and market share.

To consolidate its market position and price perception with Colombian families, Ara celebrated its 10th anniversary by launching a strong and bold promotional campaign with significant price reductions.

With the motto 'Nothing compares to Ara,' this campaign received widespread attention and drove a significant increase in the number of clients and volumes sold in Q2.

In H1, sales reached 1.1 billion euros, 31.6% above H1 22. In local currency, sales grew 52.4%, with LFL at 18.1%. In Q2, sales reached 590 million euros, 33.4% above Q2 22. In local currency, sales grew 53.9%, with LFL at 17.4%.

EBITDA margin stood at 1.7% (3.1% in H1 22). This margin was clearly affected by the massive price investment campaign executed in Q2. It was also impacted by the effect of trading-down on the margin mix and by the presence of more than a quarter of the store network with less than 12 months of operation. EBITDA declined from 26 million euros in H1 22 to 18 million euros in H1 23.

The banner remains focused on executing its expansion plan, and in the first six months, Ara opened 110 new stores and closed two, ending June with 1,201 stores under operation.

3. Consolidated Financial Information Analysis

Consolidated Results

(€ Million)	H1 23		H1 22		D	Q2 23		Q2 22		D
Net Sales and Services	14,513		11,883		22.1%	7,709		6,370		21.0%
Gross Profit	2,970	20.5%	2,507	21.1%	18.5%	1,556	20.2%	1,323	20.8%	17.7%
Operating Costs		-1,965 -13.5%		-1,656 -13.9%	18.7%		-998 -12.9%		-843 -13.2%	18.3%
EBITDA	1,005	6.9%	851	7.2%	18.1%	559	7.2%	479	7.5%	16.5%
Depreciation	-429	-3.0%	-385	-3.2%	11.2%	-222	-2.9%	-195	-3.1%	13.5%
EBIT	576	4.0%	466	3.9%	23.7%	337	4.4%	284	4.5%	18.6%
Net Financial Costs	-78	-0.5%	-85	-0.7%	-8.9%	-36	-0.5%	-40	-0.6%	-8.7%
Other Profits/Losses	-18	-0.1%	-25	-0.2%	n.a.	-12	-0.2%	-12	-0.2%	n.a.
EBT	480	3.3%	356	3.0%	35.1%	288	3.7%	232	3.6%	24.3%
Income Tax	-117	-0.8%	-85	-0.7%	37.1%	-67	-0.9%	-54	-0.8%	24.7%
Net Profit	363	2.5%	270	2.3%	34.5%	221	2.9%	178	2.8%	24.2%
Non-Controlling Interests	-7	0.0%	-9	-0.1%	-21.2%	-5	-0.1%	-5	-0.1%	0.8%
Net Profit Attributable to JM	356	2.5%	261	2.2%	36.3%	217	2.8%	173	2.7%	24.8%
EPS (€)	0.57		0.42		36.3%	0.34		0.28		24.8%
EPS without Other Profits/Losses (€)	0.59		0.45		32.2%	0.36		0.29		24.6%

Balance Sheet

(€ Million)	H1 23	2022	H1 22
Net Goodwill	628	613	612
Net Fixed Assets	4,994	4,589	4,207
Net Rights of Use (RoU)	2,868	2,420	2,280
Total Working Capital	-3,708	-3,837	-3,175
Others	173	161	185
Invested Capital	4,955	3,946	4,109
Total Borrowings	612	470	470
Financial Leases	92	82	38
Capitalised Operating Leases	3,051	2,597	2,444
Accrued Interest	8	14	1
Cash and Cash Equivalents	-1,434	-1,802	-1,101
Net Debt	2,330	1,360	1,851
Non-Controlling Interests	244	254	245
Share Capital	629	629	629
Reserves and Retained Earnings	1,752	1,702	1,383
Shareholders Funds	2,625	2,585	2,258

At the end of June, the Group's net cash position (excluding liabilities from capitalized operating leases) was c. €721 MN.

Cash Flow

(€ Million)	H1 23	H1 22
EBITDA	1,005	851
Capitalised Operating Leases Payment	-165	-148
Interest Payment	-87	-77
Other Financial Items	0	0
Income Tax	-123	-106
Funds From Operations	630	520
Capex Payment	-495	-405
Change in Working Capital	-243	5
Others	-19	-24
Cash Flow	-127	97

The Cash Flow generated in H1 was minus 127 million euros, reflecting capex payments and effects over the working capital, including the Portuguese Government's measure to reduce VAT that impacted the amount in trade payables at the end of the period.

Capex

(€ Million)	H1 23	Weight	H1 22	Weight
Biedronka	196	43%	161	51%
Distribution Portugal	114	25%	95	30%
Ara	127	28%	34	11%
Others	23	5%	28	9%
Total CAPEX	459	100%	318	100%

The Investment Programme reached 459 million euros in the period, of which c.43% was invested in Biedronka.

4. Outlook 2023

Food inflation remained high at the beginning of the year but gradually fell in Q2. It is still difficult to anticipate the inflation reduction for the second half of the year.

Electricity, gas, and fuel prices remain volatile, while interest rates, which increased rapidly in 2022, remain on an upward trend, namely in the Euro zone.

In the context of fragile consumer confidence, the rise in minimum wages and continuing low unemployment rates can partly compensate the pressure that the persistent inflation and high interest rates generate on disposable income. Consumer resilience will depend on the balance between all these variables in the three countries where we operate.

In Poland, consumer price sensitivity has increased in 2023. Biedronka is living up to its brand promise by prioritizing low prices, ensuring consumer preference, protecting sales growth, and limiting potential trading-down effects.

To get closer to its customers and improve the shopping experience, Biedronka plans to add 130-150 locations to its store network and remodel c.350 stores in the full year, seizing available opportunities.

In 2023, Hebe is focusing its growth effort on the e-commerce channel through which international sales in the Czechia and Slovakia are expected to progressively gain relevance. The banner continues to pursue an omnichannel approach, maintaining its pace of openings (c.30 stores).

In Portugal, the challenges posed by lower consumer demand and trading-down trends will likely continue in H2 23. Tourism is expected to remain the main growth engine for the HoReCa sector.

Pingo Doce is investing in intensifying its promotional dynamics and maintaining a low-price policy. In addition, the Company is accelerating its refurbishment programme to roll out its food store model for the future. Taking advantage of the banner's competitive advantages, this new store should enhance Pingo Doce's differentiation factors: perishables, private brand, and meal solutions. The Company plans to remodel up to 60 stores and open c.10 new locations.

Recheio will continue to invest in reinforcing its competitive positioning in the HoReCa channel and Traditional Retail by expanding the Amanhecer network, where it already works with more than 500 partners.

In Colombia, we are witnessing further deterioration of household purchasing power already weakened by a severe pandemic crisis followed by two years of very high food inflation.

In this context, Ara will remain firm in its commitment to low prices, focused on reinforcing its presence in the country, and committed to being the preferred neighbourhood store of Colombian families.

The expansion of the store network will continue to be a priority in 2023. The banner plans to add more than 200 new locations, maintaining its long-term vision regarding the market potential and the fit of its business model to the existing opportunities.

Despite recognizing that these are demanding times, we are confident in our Companies' ability and motivation to continue to grow in sales and number of stores while at the same time improving efficiency to protect profitability. Because of cost inflation, the focus on increasing sales volumes and EBITDA will continue to pressure the EBITDA margin as a percentage of sales.

In accordance with our long-term goals, investment continues to be a priority. Our capex programme is expected to be in line with 2022: c.1 billion euros (c.45% of which in Poland).

Lisbon, 25 July 2023

The Board of Directors

5. Management Report Appendix

5.1. The impact of IFRS 16 on Financial Statements

Income Statement by Functions

	IFRS16		Excl. IFRS16
(€ Million)	H1 23	H1 22	H1 23	H1 22
Net Sales and Services	14,513	11,883	14,513	11,883
Cost of Sales	-11,543	-9,377	-11,543	-9,377
Gross Profit	2,970	2,507	2,970	2,507
Distribution Costs	-2,146	-1,843	-2,211	-1,894
Administrative Costs	-248	-198	-249	-199
Other Operating Profits/Losses	-18	-25	-18	-25
Operating Profit	558	441	492	389
Net Financial Costs	-78	-85	-14	-12
Gains/Losses in Other Investments	0	0	0	0
Profit Before Taxes	480	356	478	377
Income Tax	-117	-85	-116	-89
Profit Before Non Controlling Interests	363	270	362	288
Non-Controlling Interests	-7	-9	-8	-10
Net Profit Attributable to JM	356	261	354	278

Income Statement (Management View)

	(Excl. IFRS16)				(Excl. IFRS16)
(€ Million)	D H1 23 H1 22			Q2 23		Q2 22		D
Net Sales and Services	14,513		11,883		22.1%	7,709		6,370		21.0%
Gross Profit	2,970	20.5%	2,507	21.1%	18.5%	1,556	20.2%	1,323	20.8%	17.7%
Operating Costs	-2,212	-15.2%	-1,871	-15.7%	18.2%	-1,126	-14.6%	-953	-15.0%	18.1%
EBITDA	758	5.2%	635	5.3%	19.3%	431	5.6%	370	5.8%	16.4%
Depreciation	-248	-1.7%	-222	-1.9%	11.9%	-128	-1.7%	-112	-1.8%	14.4%
EBIT	510	3.5%	414	3.5%	23.3%	303	3.9%	258	4.1%	17.2%
Net Financial Costs	-14	-0.1%	-12	-0.1%	17.1%	-10	-0.1%	-3	0.0%	n.a.
Other Profits/Losses	-18	-0.1%	-25	-0.2%	n.a.	-12	-0.2%	-12	-0.2%	n.a.
EBT	478	3.3%	377	3.2%	26.8%	280	3.6%	243	3.8%	15.5%
Income Tax	-116	-0.8%	-89	-0.7%	31.3%	-66	-0.9%	-55	-0.9%	18.5%
Net Profit	362	2.5%	288	2.4%	25.4%	215	2.8%	188	2.9%	14.6%
Non-Controlling Interests	-8	-0.1%	-10	-0.1%	-18.5%	-5	-0.1%	-5	-0.1%	0.2%
Net Profit Attributable to JM	354	2.4%	278	2.3%	27.0%	209	2.7%	182	2.9%	15.0%
EPS (€)	0.56		0.44		27.0%	0.33		0.29		15.0%
EPS without Other Profits/Losses (€)	0.59		0.47		23.6%	0.35		0.30		15.3%

Balance Sheet

(€ Million)	(Excl. IFRS16)
	H1 23	2022	H1 22
Net Goodwill	628	613	612
Net Fixed Assets	4,994	4,589	4,207
Total Working Capital	-3,703	-3,832	-3,170
Others	144	132	158
Invested Capital	2,062	1,501	1,807
Total Borrowings	612	470	470
Financial Leases	9 2	8 2	3 8
Accrued Interest	8	1 4	1
Cash and Cash Equivalents	-1,434	-1,802	-1,101
Net Debt	-721	-1,236	-593
Non-Controlling Interests	256	265	255
Share Capital	629	629	629
Reserves and Retained Earnings	1,899	1,843	1,516
Shareholders Funds	2,784	2,737	2,400

Cash Flow

	(Excl. IFRS16)
(€ Million)	H1 23	H1 22
EBITDA	758	635
Interest Payment	-5	-10
Other Financial Items	0	0
Income Tax	-123	-106
Funds From Operations	630	520
Capex Payment	-495	-405
Change in Working Capital	-244	5
Others	-18	-23
Cash Flow	-127	97

EBITDA Breakdown

	IFRS16				Excl. IFRS16
(€ Million)	H1 23	Mg	H1 22	Mg	H1 23	Mg	H1 22	Mg
Biedronka	872	8.5%	721	8.7%	703	6.8%	574	6.9%
Hebe	1 4	6.8%	1 0	6.3%	0	0.1%	-2	n.a.
Pingo Doce	129	5.7%	120	5.8%	9 5	4.2%	8 7	4.2%
Recheio	3 2	5.1%	2 4	4.6%	2 9	4.6%	2 1	4.1%
Ara	1 8	1.7%	2 6	3.1%	-7	n.a.	5	0.6%
Others & Cons. Adjustments	-61	n.a.	-49	n.a.	-62	n.a.	-51	n.a.
JM Consolidated	1,005	6.9%	851	7.2%	758	5.2%	635	5.3%

Financial Results

(€ Million)	IFRS16		Excl. IFRS16
	H1 23	H1 22	H1 23	H1 22
Net Interest	-2	-7	-2	-7
Interests on Capitalised Operating Leases	-82	-67	-	-
Exchange Differences	11	-7	-6	-1
Others	-5	-3	-5	-3
Net Financial Costs	-78	-85	-14	-12

5.2. Sales Detail

(€ Million)	H1 23		H1 22		D %		Q2 23		Q2 22		D %
		% total		% total	excl. FX	Euro		% total		% total	excl. FX	Euro
Biedronka	10,316	71.1%	8,289	69.8%	24.0%	24.5%	5,475	71.0%	4,446	69.8%	20.4%	23.1%
Hebe	208	1.4%	163	1.4%	27.5%	27.9%	115	1.5%	9 1	1.4%	24.0%	26.7%
Pingo Doce	2,265	15.6%	2,086	17.6%		8.6%	1,188	15.4%	1,102	17.3%		7.8%
Recheio	632	4.4%	513	4.3%		23.2%	337	4.4%	285	4.5%		18.3%
Ara	1,084	7.5%	824	6.9%	52.4%	31.6%	590	7.7%	442	6.9%	53.9%	33.4%
Others & Cons. Adjustments	8	0.1%	9	0.1%		n.a.	4	0.1%	5	0.1%		n.a.
Total JM	14,513	100%	11,883	100%	23.3%	22.1%	7,709	100%	6,370	100%	20.4%	21.0%

Sales Growth

	Total Sales Growth			LFL Growth
	Q1 23	Q2 23	H1 23	Q1 23	Q2 23	H1 23
Biedronka
Euro	26.0%	23.1%	24.5%
PLN	28.3%	20.4%	24.0%	24.5%	17.0%	20.5%
Hebe
Euro	29.5%	26.7%	27.9%
PLN	31.9%	24.0%	27.5%	22.6%	14.2%	17.9%
Pingo Doce	9.4%	7.8%	8.6%	8.0%	7.2%	7.6%
Excl. Fuel	9.9%	8.6%	9.2%	8.4%	8.0%	8.2%
Recheio	29.2%	18.3%	23.2%	27.1%	16.4%	21.2%
Ara
Euro	29.4%	33.4%	31.6%
COP	50.8%	53.9%	52.4%	18.9%	17.4%	18.1%
Total JM
Euro	23.4%	21.0%	22.1%
Excl. FX	26.5%	20.4%	23.3%	21.2%	15.2%	18.0%

5.3. Stores Network

Number of Stores	2022	Openings		Closings	H1 23	H1 22
		Q1 23	Q2 23	H1 23
Biedronka *	3,395	1 7	3 3	1 3	3,432	3,283
Hebe	315	2	1 0	4	323	296
Pingo Doce	472	2	4	1	477	467
Recheio	4 3	0	0	0	4 3	4 2
Ara	1,093	6 4	4 6	2	1,201	875

Sales Area (sqm)	2022	Openings		Closings Remodellings	H1 23	H1 22
		Q1 23	Q2 23	H1 23
Biedronka *	2,373,630	12,323	23,827	-6,404	2,416,183	2,274,914
Hebe	81,068	485	2,351	1,035	82,869	76,356
Pingo Doce	551,250	1,413	4,164	-2,233	559,060	540,400
Recheio	139,381	0	0	1,504	137,877	134,321
Ara	376,242	21,672	15,996	710	413,200	298,280

* Excluding the stores and selling area related to 14 Micro Fulfilment Centres (MFC) to supply Biek's operation (ultrafast delivery)

5.4. Working Capital

	IFRS16		Excl. IFRS16
(€ Million)	H1 23	H1 22	H1 23	H1 22
Inventories	1,676	1,295	1,676	1,295
in days of sales	21	20	21	20
Customers	47	37	47	37
in days of sales	1	1	1	1
Suppliers 1	-4,212	-3,569	-4,212	-3,569
in days of sales 1	-53	-54	-53	-54
Others 1	-1,220	-937	-1,215	-933
Total Working Capital	-3,708	-3,175	-3,703	-3,170
in days of sales	-46	-48	-46	-48

1 Restated

5.5. Total Borrowings and Financial Leases

(€ Million)	H1 23	H1 22
Long Term Borrowings / Financial leases	309	309
as % of Total	43.9%	60.9%
Average Maturity (years)	3.5	3.7
Short Term Borrowings / Financial leases	395	198
as % of Total	56.1%	39.1%
Total Borrowings / Financial leases	705	507
Average Maturity (years)	1.7	2.4
% Total Borrowings / Financial leases in Euros	6.8%	0.8%
% Total Borrowings / Financial leases in Zlotys	27.0%	37.5%
% Total Borrowings / Financial leases in Colombian Pesos	66.3%	61.7%

5.6. Definitions

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).

6. Reconciliation Note

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

Income Statement

Income Statement (page 6)	Consolidated Income Statement by Functions (in Consolidated Financial Statements) First Half 2023
Net Sales and Services	Net sales and services
Gross Profit	Gross profit
Operating Costs	Includes headings of Distribution costs; and Administrative costs; excluding €-429 million related with Depreciations and amortisations (note 3 - Segments Reporting)
EBITDA
Depreciation	Value reflected in the note 3 - Segments Reporting
EBIT
Net Financial Costs	Net financial costs
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 at 30 June 2023 (in Consolidated Financial Statements)
Net Goodwill	Amount reflected in the heading of Intangible assets
Net Fixed Assets	Includes the headings Tangible and Intangible assets (excluding the Net goodwill of €628 million); and adding the Financial leases (€115 million)
Net Rights of Use (RoU)	Includes the heading of Net rights of use excluding the Financial leases (€115 million)
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, €-68 million related to 'Others' due to its operational nature. Excludes €77 million of short-term investments that do not qualify as cash equivalents (note 9 - Debtors, accruals and deferrals); €-5 million related with Interest accruals and deferrals heading (note 15 - 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 €-68 million related to 'Others' due to its operational nature
Invested Capital
Total Borrowings	Includes the heading Borrowings current and non-current
Financial Leases	Includes the heading of Financial leases (2023: €92 million; 2022: €82 million) 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 (heading above)
Accrued Interest	Includes the headings Derivative financial instruments and €-5 million related with Interest accruals and deferrals (note 15 - Financial net debt)
Cash and Cash Equivalents	Includes the heading Cash and cash equivalents and €77 million of Short term investments that do not qualify as cash equivalents, under accounting standards (IAS 7), (note 9 - 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 7)	Consolidated Cash Flow Statement (in Consolidated Financial Statements) First Half 2023
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 (€19 million)
Capitalised Operating Leases Payment	Included in the heading Leases paid, excluding €5 million 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 million)
Change in Working Capital	Includes Changes in working capital added from headings which did not generate cash flow
Others	Includes the headings Disposal of business (when applicable); and Profit and losses which generated cash flow, although not having operational nature (€-19 million)
Cash Flow	Corresponds to the Net change in cash and cash equivalents, deducted from Dividends paid and received; Net change in loans; and Net change in Short-term investments that do not qualify as cash. It also includes acquisitions of tangible assets classified as finance leases (€-14 million) and deducted from the payment of financial leases (€5 million), both according with previous accounting standards

7. Information Regarding Individual Financial Statements

In accordance with number 5 of article 10 of the Regulation number 5/2008 of the Portuguese Securities Market Commission (CMVM), the first half Individual Financial Statements of Jerónimo Martins SGPS, S.A. are not disclosed as they do not include additional relevant information, compared to the one presented in this report.

II – Condensed Consolidated Financial Statements

1. Consolidated Financial Statements

CONSOLIDATED INCOME STATEMENT BY FUNCTIONS	17
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	17
CONSOLIDATED BALANCE SHEET	18
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY	19
CONSOLIDATED CASH FLOW STATEMENT	20

Index to the Notes to the Consolidated Financial Statements Page

1. Activity	21
2. Accounting policies	21
3. Segments reporting	22
4. Operating costs by nature	23
5. Net financial costs	24
6. Income tax recognised in the income statement	24
7. Tangible assets, intangible assets, investment property and right-of-use assets	25
8. Derivative financial instruments	25
9. Trade debtors, accrued income and deferred costs	25
10. Cash and cash equivalents	26
11. Dividends	26
12. Basic and diluted earnings per share	26
13. Borrowings	26
14. Lease liabilities	26
15. Financial net debt	27
16. Provisions and employee benefits	27
17. Trade creditors, accrued costs and deferred income	27
18. Contingencies	27
19. Capital commitments	28
20. Related parties	29
21. Events after the balance sheet date	29

CONSOLIDATED INCOME STATEMENT BY FUNCTIONS

For the periods ended 30 June 2023 and 2022

					€ Million
		June	June	2nd Quarter	2nd Quarter
	Notes	2023	2022	2023	2022
Sales and services rendered	3	14,513	11,883	7,709	6,370
Cost of sales	4	(11,543)	(9,377)	(6,153)	(5,047)
Gross profit		2,970	2,507	1,556	1,323
Distribution costs	4	(2,146)	(1,843)	(1,101)	(941)
Administrative costs	4	(248)	(198)	(119)	(97)
Other operating profits/losses	4.1	(18)	(25)	(12)	(12)
Operating profit		558	441	325	272
Net financial costs	5	(78)	(85)	(36)	(40)
Profit before taxes		480	356	288	232
Income tax	6	(117)	(85)	(67)	(54)
Profit before non-controlling interests		363	270	221	178
Attributable to:
Non-controlling interests		7	9	5	5
Jerónimo Martins Shareholders		356	261	217	173
Basic and diluted earnings per share - euros	12	0.5671	0.4159	0.3445	0.2760

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the periods ended 30 June 2023 and 2022

			€ Million
June	June	2nd Quarter	2nd Quarter
2023	2022	2023	2022
363	270	221	178
(2)	1	(1)	1
(2)	1	(1)	1
59	(18)	54	(6)
(2)	-	(1)	-
(20)	(16)	(15)	(2)
4	(1)	4	(-)
41	(35)	42	(8)
39	(34)	41	(7)
403	236	263	172
7	9	5	5
396	227	258	167
403	236	263	172

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

CONSOLIDATED BALANCE SHEET

As at 30 June 2023 and 31 December 2022

			€ Million
		June	December
	Notes	2023	2022
Assets
Tangible assets	7	4,726	4,340
Intangible assets	7	781	755
Investment property	7	9	9
Right-of-use assets	7	2,983	2,526
Biological assets		7	6
Investments in joint ventures and associates		17	16
Other financial investments		15	17
Trade debtors, accrued income and deferred costs	9	59	58
Deferred tax assets		203	201
Total non-current assets		8,801	7,928
Inventories		1,654	1,493
Biological assets		16	12
Income tax receivable		48	35
Trade debtors, accrued income and deferred costs	9	699	593
Derivative financial instruments	8	3	2
Cash and cash equivalents	10	1,357	1,781
Total current assets		3,776	3,917
Total assets		12,577	11,845
Shareholders' equity and liabilities
Share capital		629	629
Share premium		22	22
Own shares		(6)	(6)
Other reserves		(144)	(183)
Retained earnings		1,880	1,869
		2,381	2,331
Non-controlling interests		244	254
Total shareholders' equity		2,625	2,585
Borrowings	13	229	238
Lease liabilities	14	2,646	2,248
Trade creditors, accrued costs and deferred income	17	4	4
Derivative financial instruments	8	-	5
Employee benefits	16	74	69
Provisions for risks and contingencies	16	102	82
Deferred tax liabilities		84	90
Total non-current liabilities		3,138	2,735
Borrowings	13	384	232
Lease liabilities	14	497	430
Trade creditors, accrued costs and deferred income	17	5,866	5,799
Derivative financial instruments	8	6	9
Income tax payable		61	55
Total current liabilities		6,815	6,525
Total shareholders' equity and liabilities		12,577	11,845

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 2023 and 2022

										€ Million
							Shareholders' equity attributable to Shareholders of Jerónimo Martins, SGPS, S.A.
					Other reserves				Non	Shareholder
	Share capital	Share premium	Own shares	Cash flow hedge	Fair Value of financial assets	Currency translation reserves	Retained earnings	Total	controlling interests	s' equity
Balance Sheet as at 1 January 2022	629	22	(6)	-	-	(140)	1,773	2,278	254	2,532
Equity changes in 2022
Currency translation differences	‐	‐	‐	‐	‐	(19)	‐	(19)	‐	(19)
Change in fair value of hedging instruments on foreign operations	‐	‐	‐	‐	‐	(16)	‐	(16)	‐	(16)
Change in fair value of equity instruments	‐	‐	‐	‐	1	‐	‐	1	‐	1
Other comprehensive income	-	-	-	‐	1	(35)	-	(34)	-	(34)
Net profit	‐	‐	‐	‐	‐	‐	261	261	9	270
Total comprehensive income	-	-	-	‐	1	(35)	261	227	9	236
Dividends	‐	‐	‐	‐	‐	‐	(493)	(493)	(17)	(511)
Balance Sheet as at 30 June 2022	629	22	(6)	‐	1	(175)	1,541	2,012	245	2,258
				,
Balance Sheet as at 1 January 2023	629	22	(6)	‐	(2)	(182)	1,869	2,331	254	2,585
Equity changes in 2023
Currency translation differences	‐	‐	‐	‐	‐	63	‐	63	‐	63
Change in fair value of cash flow hedging				(2)				(2)		(2)
Change in fair value of hedging instruments on foreign operations	‐	‐	‐	‐	‐	(20)	‐	(20)	‐	(20)
Change in fair value of equity instruments	‐	‐	‐	‐	(2)	‐	‐	(2)	‐	(2)
Other comprehensive income	-	-	-	(2)	(2)	43	-	39	‐	39
Net profit	‐	‐	‐	‐	‐	‐	356	356	7	363
Total comprehensive income	-	-	-	(2)	(2)	43	356	396	7	403
Dividends (note 11)	‐	‐	‐	‐	‐	‐	(346)	(346)	(17)	(363)
Balance Sheet as at 30 June 2023	629	22	(6)	(2)	(4)	(139)	1,880	2,381	244	2,625

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

CONSOLIDATED CASH FLOW STATEMENT

For the periods ended 30 June 2023 and 2022

			€ Million
		June	June
	Notes	2023	2022
Net results		356	261
Adjustments for:
Non-controlling interests		7	9
Income tax		117	85
Depreciations and amortisations		429	385
Net financial costs		78	85
Gains/losses on derivatives instruments at fair value		(5)	‐
Gains/losses in tangible, intangible and right-of-use assets		5	1
Operating cash flow before changes in working capital		986	827
Changes in working capital:
Inventories		(92)	(187)
Trade debtors, accrued income and deferred costs		5	3
Trade creditors, accrued costs and deferred income		(174)	181
Provisions and employee benefits		19	8
Cash generated from operations		743	833
Income taxes paid		(123)	(106)
Cash flow from operating activities		620	727
Investment activities
Disposals of tangible and intangible assets		2	6
Interest received		20	3
Acquisition of tangible and intangible assets		(481)	(374)
Acquisition of other financial investments and investment property		(-)	(17)
Acquisition of businesses, net of cash acquired		(2)	(1)
Short-term investments that don't qualify as cash equivalents	9	(53)	(9)
Cash flow from investment activities		(515)	(392)
Financing activities
Loans interest paid		(24)	(12)
Leases interest paid	5	(83)	(68)
Net change in loans	13	89	(2)
Leases paid	14	(170)	(151)
Dividends paid	11	(363)	(511)
Cash flow from financing activities		(551)	(744)
Net changes in cash and cash equivalents		(445)	(409)
Cash and cash equivalents changes
Cash and cash equivalents at the beginning of the year		1,781	1,494
Net changes in cash and cash equivalents		(445)	(409)
Effect of currency translation differences		21	(26)
Cash and cash equivalents at the end of June	10	1,357	1,060

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

				€ Million
	June	June	2nd Quarter	2nd Quarter
	2023	2022	2023	2022
Cash Flow from operating activities	620	727	470	624
Cash Flow from investment activities	(515)	(392)	(257)	(206)
Cash Flow from financing activities	(551)	(744)	(423)	(601)
Cash and cash equivalents changes	(445)	(409)	(210)	(183)

*The amounts presented in 2020 in Provisions and other operating gains and losses are no longer adjusted to the Net results and are now included in Changes in

The amounts presented for quarters are not audited.

working capital

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 Lisboa, Portugal.

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 25 July 2023.

2. Accounting policies

2.1. Basis for preparation

All amounts are shown in million euros (€ million) unless otherwise stated. Due to rounding's, the arithmetic result of the numbers shown in the plots may not exactly match the totals.

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

JMH condensed 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 JMH 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 2023, and essentially 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 2022 annual report are omitted because no changes occurred, or they are not materially relevant for the understanding of the interim financial statements.

As mentioned in the Consolidated Financial Statements chapter of the 2022 Annual Report, point 28 - Financial risks, the Group, as a result of its normal activity, is exposed to several risks which are monitored and mitigated throughout the year. During the first semester of 2023, 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.

Change in accounting policies and basis for preparation:

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

EU Regulation	IASB Standard or IFRIC Interpretation endorsed by EU	Issued in	Mandatory for financial years beginning on or after
Regulation no. 2036/2021	IFRS 17 Insurance Contracts (new)	May 2017 and June 2020	1 January 2023
Regulation no. 357/2022	IAS 1 Presentation of Financial Statements: Disclosure of Accounting policies (amendments) IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (amendments)	February 2021	1 January 2023
Regulation no. 1392/2022	IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a single transaction (amendments)	May 2021	1 January 2023
Regulation no. 1491/2022	IFRS 17 Insurance Contracts: Initial Application of IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments – Comparative Information (amendments)	December 2021	1 January 2023

Between November 2021 and September 2022, the EU issued the following Regulations, which were adopted by the Group with effect from 1 January 2023:

The Group adopted the above standard and 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 2023 and not early adopted

During the first semester of 2023, the EU did not issue any Regulation regarding the endorsement of new standards, amendments or interpretations that have not yet been implemented by the Group.

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

IASB issued in May 2023 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 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements (amendments)	May 2023	1 January 2024
IAS 12 Income taxes: International Tax Reform – Pillar Two Model Rules (amendments)	May 2023	1 January 2024

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 the first semester of 2023, nor were identified errors regarding previous years, which compel the restatement of the Consolidated 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 2023	4.4388	4,554.2400
Average rate for the period	4.6202	4,945.7200
Rate at 30 June 2022	4.6904	4,287.2000
Average rate for the period	4.6367	4,269.5000

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.

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: includes 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 2023 and 2022

	Portugal Retail		Portugal Cash & Carry		Poland Retail		Colombia Retail		Others, eliminations and		Total JM Consolidated
	2023	2022	2023	2022	2023	2022	2023	2022	adjustments 2023	2022	2023	2022
Net sales and services	2,565	2,328	632	513	10,316	8,289	1,084	824	(84)	(71)	14,513	11,883
Inter-segments	300	242	4	3	‐	‐	‐	‐	(303)	(245)	‐	‐
External customers	2,265	2,086	628	510	10,316	8,289	1,084	824	219	174	14,513	11,883
Operational cash flow (EBITDA)	129	120	32	24	872	721	18	26	(47)	(39)	1,005	851
Depreciations and amortisations	(88)	(78)	(11)	(10)	(265)	(244)	(36)	(30)	(28)	(23)	(429)	(385)
Earnings before interest and taxes (EBIT)	41	43	21	13	606	476	(17)	(5)	(75)	(62)	576	466
Other operating profits/losses											(18)	(25)
Financial results and gains in investments											(78)	(85)
Income tax											(117)	(85)
Minority interests											(7)	(9)
Net result attributable to JM											356	261
Total assets (1)	2,444	2,486	529	510	7,227	7,060	1,386	1,047	990	743	12,577	11,845
Total liabilities (1)	1,947	1,969	520	491	6,175	5,800	1,372	1,026	(62)	(26)	9,952	9,260
Investments in tangible and intangible assets	101	79	13	16	182	141	127	34	20	10	443	281

(1) The comparative report is 31 December of 2022

Reconciliation between EBIT and operating profit

	2023	2022
EBIT	576	466
Other operating profits/losses	(18)	(25)
Operational result	558	441

4. Operating costs by nature

	Jun 2023	Jun 2022
Cost of goods sold and materials consumed	(11,382)	(9,246)
Changes in inventories of finished goods and work in progress	18	6
Net cash discount and interest paid to suppliers	28	26
Electronic payment commissions	(36)	(29)
Other supplementary costs	(150)	(120)
Supplies and services	(547)	(460)
Advertising costs	(62)	(54)
Rents	(15)	(10)
Staff costs	(1,202)	(1,024)
Transportation costs	(154)	(146)
Depreciation and amortisation of tangibles and intangibles assets	(241)	(219)
Depreciation of right-of-use assets	(187)	(167)
Profit/loss with tangible and intangible assets	(6)	(2)
Profit/loss with right-of-use assets	1	1
Other natures of profit/loss	(18)	-
Total	(13,955)	(11,443)

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 2023	Jun 2022
Solidarity measures with Ukraine and other donations	(-)	(11)
Increase of provisions for legal contingencies	(13)	(7)
Costs with organizational restructuring programmes	(8)	(6)
Assets write-offs and gains/losses in sale of tangible assets	(2)	(-)
Fair value of energy price fixing derivative instruments	5	‐
Total	(18)	(25)

5. Net financial costs

	Jun 2023	Jun 2022
Loans interest expense	(22)	(10)
Leases interest expense	(83)	(68)
Interest received	21	3
Net foreign exchange	(6)	(1)
Net foreign exchange on leases	18	(6)
Other financial gains and losses	(5)	(3)
Total	(78)	(85)

Interest expense includes the interest on loans measured at amortised cost.

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 2023	Jun 2022
Current income tax
Current tax of the year	(127)	(85)
Adjustment to prior year estimation	8	3
Total	(118)	(82)
Deferred tax
Temporary differences created and reversed	7	(5)
Change to the recoverable amount of tax losses and temporary differences from previous years	(3)	(2)
Total	3	(7)
Other gains/losses related to tax
Impact of changes in estimates for tax litigations	(2)	4
Total	(2)	4
Total income tax	(117)	(85)

In 2023 and 2022, 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 €1.5 million, €7.5 million and €35 million, respectively.

Additionally, in 2022, a temporary solidarity contribution on the food distribution sector (CST Food Distribution) was approved, applicable to companies that carry out food retail activities in Portugal, with the indication that it is intended to tackle the inflationary phenomenon. The CST Food Distribution corresponds to an additional rate of 33% on the taxable income that exceeds 20% of the average taxable income for the reference period (2018–2021). In accordance with the legislation in force, its application will be limited to the years 2022 and 2023.

In Poland, for 2023 and 2022, the income tax rate applied to taxable income was 19%.

In Colombia, the income tax rate was 35% in 2023 and 2022.

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 2022	4,340	755	9	2,526	7,630
Foreign exchange differences	196	22	‐	144	362
Increases	433	11	‐	114	557
Contracts update	‐	‐	‐	396	396
Disposals and write-offs	(7)	(-)	‐	(-)	(7)
Contracts cancellation	‐	‐	‐	(11)	(11)
Depreciation, amortisation and impairment losses	(235)	(6)	‐	(187)	(429)
Net value at 30 June 2023	4,726	781	9	2,983	8,499

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 2023 include Goodwill in the amount of €628 million.

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 increased €362 million, which includes an increase of €15 million related to Goodwill from businesses in Poland.

8. Derivative financial instruments

	Jun 2023				Dec 2022
	Notional	Assets		Liabilities		Notional	Assets		Liabilities
		Current	Non current	Current	Non current		Current	Non current	Current	Non current
Derivatives held for trading
Currency forwards - stock purchase (COP/EUR)	1.8 million EUR	-	-	0	-	1.5 million EUR	0	-	0	-
Currency forwards - stock purchase (COP/USD)	2,3 million USD	-	-	0	-	1 million USD	0	-	0	-
Currency forwards - stock purchase (EUR/USD)	-	-	-	-	-	0.05 million USD	-	-	-	-
Currency forwards - stock purchase (PLN/USD)	5.2 million EUR	-	-	0	-	-	-	-	-	-
Currency forwards - treasury applications (PLN/EUR)	49.9 million EUR	3	-	0	-	99.7 million EUR	2	-	0	-
Commodities swap - energy purchase (PLN/EUR)	n.a.	-	-	-	0	n.a.	-	-	-	5
Cash flow hedging derivatives
Currency forwards - stock purchase (PLN/USD)	36.1 million USD	-	-	2	-	47.1 million USD	0	-	0	-
Currency forwards - stock purchase (COP/EUR)	0.2 million EUR	-	-	0	-	2.2 million EUR	0	-	0	-
Currency forwards - stock purchase (COP/USD)	1.6 million USD	-	-	0	-	1.7 million USD	0	-	0	-
Foreign operation investments hedging derivatives
Currency forwards (PLN)	289 million PLN	-	-	2	-	1,006 million PLN	-	-	9	-
Total derivatives held for trading		3	-	1	0		2	-	0	5
Total hedging derivatives		-	-	5	-		0	-	9	-
Total assets/liabilities derivatives		3	-	6	0		2	-	9	5

9. Trade debtors, accrued income and deferred costs

Non-current Other debtors 56 56 Deferred costs 3 3 Total 59 58 Current Commercial customers 67 66 Other debtors 185 152 Other taxes receivable 42 9 Accrued income and deferred costs 328 345 Short-term investments that don't qualify as cash equivalents 77 21 Total 699 593	Jun 2023	Dec 2022

10. Cash and cash equivalents

	Jun 2023	Dec 2022
Bank deposits	265	845
Short-term investments	1,087	932
Cash in hand	4	4
Total	1,357	1,781

11. Dividends

Dividends in the amount of €363 million were paid in 2023, to JMH shareholders in the amount of €346 million and to partners with non-controlling interests in the Group companies in the amount of €17 million.

12. Basic and diluted earnings per share

	Jun 2023	Jun 2022
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	356	261
Basic and diluted earnings per share – Euros	0.5671	0.4159

13. Borrowings

The Group has negotiated commercial paper programs in the total amount of €215 million, of which €115 million are committed. The utilizations under these programs are remunerated at the Euribor rate for the respective issue period plus variable spreads and can also be issued on auctions. These programs had no utilizations as of 30 June 2023.

Jeronimo Martins Polska SA made a scheduled repayment of a loan in the amount of PLN 50 million.

Jeronimo Martins Colombia SAS paid 80,000 million Colombian pesos, around €17 million, related to capital repayments of three medium and long-term loans. Also, during the first half of 2023, Jeronimo Martins Colombia, SAS increased the use of credit lines by 524,750 million Colombian pesos, around €115 million.

13.1. Current and non-current loans

Jun 2023	Opening balance	Cash flows	Transfers	Foreign exchange difference	Closing balance
Non-current loans
Bank loans	238	(16)	(11)	18	229
Total	238	(16)	(11)	18	229
Current loans
Bank loans	232	106	11	35	384
Total	232	106	11	35	384

14. Lease liabilities

Jun 2023	Current	Non current	Total
Opening balance	430	2,248	2,678
Increases (new contracts)	12	102	114.097
Payments	(169)	(1)	(170)
Transfers	140	(140)	‐
Contracts change/ cancel	64	321	385
Foreign exchange difference	21	115	136
Closing balance	497	2,646	3,143

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 2023	Dec 2022
Non-current loans (note 13.1)	229	238
Current loans (note 13.1)	384	232
Financial lease liabilities - non-current (note 14)	2,646	2,248
Financial lease liabilities - current (note 14)	497	430
Derivative financial instruments (note 8)	3	12
Interest on accruals and deferrals	5	2
Cash and cash equivalents (note 10)	(1,357)	(1,781)
Short-term investments that don't qualify as cash equivalents (note 9)	(77)	(21)
Total	2,330	1,360

16. Provisions and employee benefits

2023	Risks and contingencies	Employee benefits
Balance as at 1 January	82	69
Set up, reinforced and transfers	18	5
Foreign exchange difference	2	2
Used	(-)	(2)
Balance as at 30 June	102	74

17. Trade creditors, accrued costs and deferred income

	Jun 2023	Dec 2022
Non-current
Other commercial creditors	3	3
Accrued costs and deferred income	1	1
Total	4	4
Current
Other commercial creditors	4,577	4,579
Other non-commercial creditors	424	419
Other taxes payables	157	122
Contracts liabilities with customers	19	15
Refunds liabilities to customers	2	1
Accrued costs and deferred income	688	663
Total	5,866	5,799

18. Contingencies

Contingent liabilities

During the first half of 2023, the following changes occurred to the contingencies mentioned in the 2022 Annual Report:

Competition Authorities proceedings:

• 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 - Distribuição Alimentar, S.A. (Pingo Doce) ten statements of objections for alleged anti-competitive practices, consisting of price alignment for certain products.

At the end of the first half of 2023, Pingo Doce had been notified of decisions issued by AdC regarding all of the above-mentioned proceedings, imposing fines on several retailers and their suppliers. In the case of Pingo Doce these decisions resulted in the imposition of fines in the amount around of €190 million.

Pingo Doce totally disagrees with such decisions which it considers to be completely ungrounded. As such, the Company filed 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 fines. Based on the opinion of its legal counsels and economic advisors, the Company is fully convinced of the strength and merits of its position.

• In Poland, the Company Jeronimo Martins Polska, S.A. (JMP) was notified, in 2019, by the Polish Office of Competition and Consumer Protection (UOKiK) on the opening of one investigation proceeding, regarding missing price labels on shelves and discrepancies between prices on the shelves and the ones indicated at the checkouts.

In August 2020, UOKiK notified the JMP of the decision, concluding with the imposition of a fine of 115 million zloty (c. €25 million). JMP, disagreeing with the understanding and conclusion of this Authority, filed an appeal to the Court of Competition and Consumer Protection (CCCP). On 29 September 2022 the court in the first instance sustained the UOKiK decision and dismissed the appeal. Convinced of the merits of its defence and has factual and legal arguments to be used, JMP filed an appeal to the Second Instance Court. On 27 June 2023 the Court of Appeals dismissed JMP's appeal, making UOKiK decision final. Nevertheless, JMP sustaining its position, will file an extraordinary appeal to the Supreme Court.

During the year 2020, JMP was notified by UOKiK on the opening of one proceeding related to the disclosure of country of origin of fruit and vegetable products at store level. On 22 April 2021 UOKiK notified JMP of the decision on the case, imposing a fine of 60 million zloty (c. €13 million). The mentioned decision is not final, so JMP, disagreeing with the understanding and conclusion of this Authority, filed an appeal before the CCCP. On 17 April 2023 the CCCP sustained UOKiK's decision. JMP filed the appeal to the Court of Appeals.

On 10 August 2022 the President of UOKiK initiated the proceedings regarding the promotional campaign 'Biedronka's Anti-inflation Shield', having on 13 April 2023 issued a decision to impose a fine of 161 million zloty (c. €36 million). JMP filed an appeal to the CCCP.

Other tax and legal proceedings:

• c) The Portuguese Tax Authorities (PTA) carried out some corrections to the CIT from Companies included in the perimeter of the Tax Group headed by Recheio SGPS. With these corrections the total assessments concerning 2007 to 2014, amount to €17 million, of which an amount of €16 million is still in dispute. The Lisbon Tax Court has already ruled in favour of Recheio SGPS regarding the 2008, 2009, 2010, 2011 and 2013 assessments. Up to this date, the PTA have appealed of the decisions regarding 2008, 2009, 2011 and 2013;
• e) The PTA assessed, for the period from 2016 to 2019, JMR SGPS and JMH (as the head of the Tax Group in which Recheio SGPS is included), the amounts of €122 million and €30 million, 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;
• g) The Food and Veterinary Department (Direção-Geral de Alimentação e Veterinária) claimed from Pingo Doce, Recheio and Hussel an amount of €29 million, €3 million and €0.06 million, respectively, in respect of the Food Safety Tax (Taxa de Segurança Alimentar Mais – TSAM) assessed for the years 2012 to 2023. 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.

Already in 2023, a consumer protection association filed popular actions against Pingo Doce in respect to damages arisen from an alleged discrepancy in prices between what is displayed on the shelf and what appears at the checkout counter in its supermarkets. Under any circumstances, safeguarding the legitimate interests of the Consumer is always a priority for Pingo Doce, and therefore, as the company is convinced that there is no ground for these actions, it will contest them in due time.

19. Capital commitments

On 29 May 2023, Jerónimo Martins – Agro-Alimentar, S.A. (JMA) signed a "Partnership Agreement" (Agreement) with the Luís Vicente Group. This Agreement consists of the creation of a company under common control for the development of production activities for some varieties of fruits, providing for an investment amount by JMA of €7 million. The Agreement was, meanwhile, concluded on July 5, 2023, with JMA's entering the capital of the company Supreme Fruits, Lda. for that amount.

On 26 June 2023, JMA entered into a Private Agreement for the Placement of Shares (Private Placement) with Andfjord Salmon AS in which the Group holds 10.5% of the share capital. Under this Private Placement, JMA acquired an additional amount of 10 million shares of this company on 11 July 2023, for the value of NOK (Norwegian crowns) 385 million (equivalent to €33 million), becoming the holder of a total 25.1% of the share capital.

20. Related parties

56.136% of the Group is owned by the Sociedade Francisco Manuel dos Santos, B.V., with Sociedade Francisco Manuel dos Santos, S.E. the entity that qualifies as the ultimate parent company of the Group.

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

	Joint ventures		Associates		Other related parties(*)
	Jun 2023	Jun 2022	Jun 2023	Jun 2022	Jun 2023	Jun 2022
Sales and services rendered	‐	‐	12	12	-	-
Stocks purchased and services supplied	2	4	(-)	-	47	53
	Joint ventures				Other related parties(*)
			Associates
	Jun 2023	Dec 2022	Jun 2023	Dec 2022	Jun 2023	Dec 2022
Trade debtors, accrued income and deferred costs	-	-	5	5	-	-

(*) 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.

21. Events after the balance sheet date

At the conclusion of this Report there were no relevant events to highlight that are not disclosed in the Financial Statements.

Lisbon, 25 July 2023

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), number 1 of article 29-J 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, 25 July 2023

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 Chairwoman 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 Manuel da Silveira e Castro Soares dos Santos (Member of the Board of Directors)

María Ángela Holguín (Member of the Board of Directors)

Natalia Anna Olynec (Member of the Board of Directors)

Sérgio Tavares Rebelo (Member of the Board of Directors and Member 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 condensed consolidated financial statements

Introduction

We have performed a limited review on the condensed consolidated financial statements of Jerónimo Martins, S.G.P.S., S.A., which comprise the consolidated statement of financial position as at 30 June 2023 (showing a total of 12.577 million Euros and a shareholder's equity total of 2.625 million Euros, including a consolidated net profit attributable to equity holders of the parent of 356 million 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 condensed 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 condensed 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 condensed 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 condensed 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 condensed 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 condensed consolidated financial statements.

Conclusion

Based on our review procedures, nothing has come to our attention that causes us to believe that the condensed consolidated financial statements of Jerónimo Martins, S.G.P.S., S.A., as at 30 June 2023, 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, 4 August 2023

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

(Signed)

Pedro Miguel Borges Marques - ROC n.º1801 Registered with the Portuguese Securities Market Commission under license nr 20161640

Jerónimo Martins | R&A First Half 2023

Consolidated Financial Statements 31 Jerónimo Martins, SGPS, S.A. Head office: Rua Actor António Silva, n.º 7 1649-033 Lisboa Tel.: +351 21 753 20 00 Fax: +351 21 752 61 74 www.jeronimomartins.com