Jeronimo Martins — Interim / Quarterly Report 2023

Oct 25, 2023

This release includes, in Appendix 1, for comparison purposes, the Financial Statements excluding the effect of the IFRS16.

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Jerónimo Martins, SGPS, S.A. | Head office: Rua Actor António Silva, n. º7, 1649-033 Lisbon Share Capital: Euro 629,293,220.00 Registered at the C.R.C. of Lisbon and Tax Number: 500 100 144 www.jeronimomartins.com

FIRST 9 MONTHS 2023 | KEY FIGURES

PRICE COMPETITIVENESS DRIVES GROWTH IN SALES AND RESULTS

• Sales grew 22.1% to €22.5 BN (+21.2% excluding FX). In Q3, sales increased 22.0% to €7.9 BN (+17.4% excluding FX).
• EBITDA increased 18.0% to €1.6 BN (+16.1% excluding FX), with the EBITDA margin at 7.1% (7.3% in 9M 22). In Q3, EBITDA grew 18.0% to €586 MN (+12.9% excluding FX), translating into an EBITDA margin of 7.4% (7.6% in Q3 22).
• Net Earnings reached €558 MN, corresponding to an EPS of €0.89.
• Cash Flow in the 9M is €159 MN.
• Net Debt stands at €2.1 BN. Excluding IFRS 16, the Group posted a net cash position of €959 MN by the end of September 2023.

PERFORMANCE OVERVIEW & KEY DRIVERS

All banners maintained their strategic focus on competitiveness, guaranteeing a strong sales performance throughout the period and limiting the effects on the EBITDA margin of the sharp reduction in food inflation and the high cost inflation.

In Poland, where volumes in the food retail market have been contracting, Biedronka delivered solid volume growth across the nine months. This performance improved in the last quarter and contributed decisively to the one billion euros of extra sales added by our largest banner in Q3 and to further market share gains. Hebe posted strong growth in its stores and online operation and strengthened its competitive positioning.

Pingo Doce delivered robust growth in Portugal, consolidating its differentiation and enhancing the shopping experience through its ongoing remodeling programme. Recheio's excellent performance leveraged on the banner's competitiveness and strong value proposition in the HoReCa sector.

In Colombia, the pressure on consumer demand has intensified throughout the year. Ara continued to invest in price, working to reinforce its positioning and to outperform the market.

Our assertive value propositions and all banners' commitment to low prices in a challenging consumer context drove sales growth and delivered solid Group EBITDA increase. The respective margin fell by 24 b.p. versus 9M 22, reflecting price investment and cost inflation.

At the end of September, the Group's net cash position (excluding IFRS 16) was 959 million euros.

MESSAGE FROM THE CHAIRMAN AND CEO PEDRO SOARES DOS SANTOS

'At the end of the third quarter, we remain firmly committed to our priorities. In a challenging context, we were able to be the consumers' first choice, grow sales, and protect our businesses' efficiency, profitability, and sustainability.

This strong performance reflects our determination to keep prices low without neglecting the continuous improvement of our offer and shopping experience, nor the execution of our investment programme.

We are aware that in the coming months, we will continue to be pressured by the sharp reduction in food inflation and the substantial cost inflation. This scenario will demand from all our teams strong focus, strict discipline, and a renewed commitment to price leadership in the different markets.

With the war in Ukraine with no end in sight and the escalation of tension in the Middle East, the impacts on the fragile consumer confidence are highly unpredictable. Against this backdrop, we will keep working and investing to ensure that our stores are a safe haven where families can find the best value proposition.'

OUTLOOK 2023

Despite recognizing that these are demanding times, we are confident in the ability and motivation shown by our Companies to continue making a difference and expanding their presence in the markets where we operate.

All banners are focused on competitiveness and sales growth in volume, aiming to boost EBITDA in value. However, ongoing cost inflation might continue to pressure the EBITDA margin (in percentage of sales).

We are committed to our long-term objectives and reiterate all the plans previously disclosed for each of our businesses and our intention to prioritize investment, estimating it to be in line with 2022 (around one billion euros), of which c.45% will be invested in Poland.

PERFORMANCE ANALYSIS BY BANNER

24.5%

17.0%

12.8%

POLAND

In Poland, food inflation has fallen throughout the year, reaching 18.0% in the 9M (12.9% in Q3). Since the end of 2022, consumers are progressively more price oriented. Within a more cautious and promotions-driven consumer context, volume evolution in the food retail market has been negative.

Since the beginning of the year, Biedronka led, in frequency and intensity, the market's promotional activity, providing ongoing saving opportunities and widening the gap between its basket inflation and the country's food inflation.

In the 9M, sales grew remarkably by 21.7% in local currency, with LFL at 17.8%. In euros, sales reached 15.8 billion, 24.2% above 9M 22.

In Q3, sales in local currency grew 17.4%, with LFL standing at 12.8%. In euros, sales reached 5.5 billion, 23.8% above Q3 22. Volume growth increased substantially in Q3, and the Company continued outperforming the market.

The strong sales increase led EBITDA to grow by 20.9% (+18.4% in local currency). The price investment and the cost inflation reduced the EBITDA margin to 8.6% (8.8% in 9M 22).

Biedronka opened 92 stores in the first nine months of the year (78 net additions) and remodelled 270 locations.

Hebe's sales in local currency grew 27.8% in 9M, with LFL at 17.9%. In euros, sales reached 329 million, 30.5% above 9M 22.

In Q3, sales grew 28.2% in local currency, with LFL at 17.7%. In euros, sales reached 121 million, 35.0% above Q3 22.

The online sales grew 51.8%, representing 16.5% of sales in the 9M (13.9% in the 9M 22).

EBITDA grew 33.0% (+30.2% in local currency), with the respective margin reaching 8.2% (8.0% in 9M 22).

Hebe opened 17 stores over the nine months (13 net additions) and ended the period with 328 stores.

Q1 Q2 Q3 Q4 Q1 Q2 Q3

12.2%

Biedronka LFL

22.5% 23.3% 23.4%

2022 2023

PORTUGAL

In Portugal, food inflation fell throughout the year to 12.6% in the 9M (6.9% in Q3).

The consumer remained fragile, with the household's real income pressured by general price increases and higher interest rates.

The Cash & Carry format has benefited from healthy growth in the tourism sector.

Pingo Doce kept a robust promotional strategy throughout the period, delivering well on sales growth and reinforcing the banner's competitiveness and volume performance.

Sales in 9M grew 8.8%, with LFL at 8.4% (excluding fuel), reaching 3.5 billion euros. In Q3, sales increased 9.3%, with LFL at 8.8% (excluding fuel), reaching 1.3 billion euros.

Pingo Doce opened eight new stores, closed one, and remodelled 36 locations during the period.

Recheio's good performance reflects growth in the HoReCa channel and a strong value proposition carefully customized for each customer segment.

Sales grew 18.1% (with LFL at 16.7%), surpassing in the 9M, for the first time, 1 billion euros. In Q3, sales grew 10.3% to 371 million euros, with LFL at 9.5%.

Distribution Portugal's EBITDA reached 268 million euros, 11.6% above 9M 22, with the respective margin at 5.9%, in line with the previous year.

COLOMBIA

In Colombia, food inflation was 17.3% in 9M and 12.4% in Q3. High, persistent inflation has pressured household income, driving negative volumes in food retail and extensive trading down.

39.5% 48.9% 33.6% 25.5% 18.9% 17.4% 9.3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Ara LFL 2022 2023

In a difficult consumer environment, Ara reinforced its price position and reaffirmed the strength of its brand by investing to increase the affordability of essential food products.

In the 9M, sales in local currency, grew 48.7%, with LFL at 14.8%. Sales reached 1.8 billion in euros, 35.5% above 9M 22.

In Q3, sales reached 666 million euros, 42.5% above Q3 22. Sales grew 42.4% in local currency, with LFL at 9.3%.

In the 9M, EBITDA was at 31 million euros (42 million euros in 9M 22). EBITDA margin stood at 1.8% (3.3% in 9M 22). The margin decline reflects the effects of significant price investment, the negative impact of trading down on the margin mix, and the low maturity of many stores.

The excellent execution of the expansion plan allowed Ara to add 151 new stores in the 9M, ending the period with 1,241 locations.

3.5%

32.1%

Recheio LFL

27.0% 28.3% 23.1% 27.1% 16.4% 9.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023

CONSOLIDATED FINANCIAL HEADINGS

Net Financial Costs amounted to -142 million euros, compared to the -135 million euros recorded in 9M 22. These costs include currency translation gains relating to value adjustments in capitalizing operating lease liabilities in Poland denominated in euros.

Other Profits and Losses were -36 million euros, which included indemnities, write-offs, and increased provisions for contingencies.

The Investment Programme reached 790 million euros in the period, of which c.44% was invested in Biedronka.

The Cash Flow generated in 9M was 159 million euros.

KEY PERFORMANCE FIGURES

CONSOLIDATED RESULTS

(€ Million)	9M 23		9M 22		D	Q3 23		Q3 22		D
Net Sales and Services	22,451		18,392		22.1%	7,938		6,509		22.0%
Gross Profit	4,600	20.5%	3,887	21.1%	18.3%	1,630	20.5%	1,380	21.2%	18.1%
Operating Costs		-3,010 -13.4%		-2,540 -13.8%	18.5%		-1,045 -13.2%		-884 -13.6%	18.2%
EBITDA	1,591	7.1%	1,348	7.3%	18.0%	586	7.4%	496	7.6%	18.0%
Depreciation	-660	-2.9%	-581	-3.2%	13.6%	-231	-2.9%	-196	-3.0%	18.2%
EBIT	931	4.1%	766	4.2%	21.4%	355	4.5%	301	4.6%	17.9%
Net Financial Costs	-142	-0.6%	-135	-0.7%	5.2%	-64	-0.8%	-50	-0.8%	29.5%
Other Profits/Losses	-36	-0.2%	-56	-0.3%	n.a.	-18	-0.2%	-31	-0.5%	n.a.
EBT	753	3.4%	576	3.1%	30.7%	272	3.4%	220	3.4%	23.7%
Income Tax	-182	-0.8%	-139	-0.8%	31.6%	-65	-0.8%	-53	-0.8%	22.9%
Net Profit	570	2.5%	437	2.4%	30.4%	207	2.6%	167	2.6%	23.9%
Non-Controlling Interests	-12	-0.1%	-19	-0.1%	-33.6%	-5	-0.1%	-10	-0.2%	-44.8%
Net Profit Attributable to JM	558	2.5%	419	2.3%	33.3%	202	2.5%	157	2.4%	28.2%
EPS (€)	0.89		0.67		33.3%	0.32		0.25		28.2%
EPS without Other Profits/Losses (€)	0.92		0.74		25.7%	0.33		0.29		15.6%

BALANCE SHEET

(€ Million)	9M 23	2022	9M 22
Net Goodwill	616	613	603
Net Fixed Assets	5,056	4,589	4,257
Net Rights of Use (RoU)	2,833	2,420	2,248
Total Working Capital	-3,872	-3,837	-3,233
Others	240	161	183
Invested Capital	4,873	3,946	4,058
Total Borrowings	697	470	470
Financial Leases	98	82	36
Capitalised Operating Leases	3,039	2,597	2,427
Accrued Interest	6	14	3
Cash and Cash Equivalents	-1,761	-1,802	-1,272
Net Debt	2,079	1,360	1,664
Non-Controlling Interests	249	254	255
Share Capital	629	629	629
Reserves and Retained Earnings	1,915	1,702	1,510
Shareholders Funds	2,793	2,585	2,394

CASH FLOW

(€ Million)	9M 23	9M 22
EBITDA	1,591	1,348
Capitalised Operating Leases Payment	-250	-221
Interest Payment	-138	-114
Other Financial Items	0	0
Income Tax	-205	-157
Funds From Operations	999	855
Capex Payment	-834	-626
Change in Working Capital	22	100
Others	-28	-54
Cash Flow	159	275

DISCLAIMER

This release's forward-looking statements are based on current expectations of future events. They are subject to risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties, which have increased as a result of supply chain disruptions following the Covid-19 pandemic and of the war in Ukraine that drove a food and energy crisis and persistently high inflation, relate to factors that are beyond Jerónimo Martins' ability to control or estimate precisely and include but are not limited to general economic conditions, actions taken by governmental authorities to address these events' effects and their impacts over the economy, competition, industry trends, credit markets, foreign exchange fluctuations, and regulatory developments.

The forward-looking statements herein refer only to this document and its publication date. Unless required by applicable law or regulation, Jerónimo Martins assumes no obligation to update the information contained in this release or notify a reader if any matter stated herein changes or becomes inaccurate.

APPENDIX

INCOME STATEMENT BY FUNCTIONS

1.
Financial
Statements

	IFRS16		Excl. IFRS16
(€ Million)	9M 23	9M 22	9M 23	9M 22
Net Sales and Services	22,451	18,392	22,451	18,392
Cost of Sales	-17,851	-14,505	-17,851	-14,505
Gross Profit	4,600	3,887	4,600	3,887
Distribution Costs	-3,303	-2,824	-3,402	-2,901
Administrative Costs	-367	-297	-369	-298
Other Operating Profits/Losses	-36	-56	-36	-56
Operating Profit	895	711	794	632
Net Financial Costs	-142	-135	-18	-16
Gains/Losses in Other Investments	0	0	0	0
Profit Before Taxes	753	576	776	616
Income Tax	-182	-139	-186	-145
Profit Before Non Controlling Interests	570	437	590	471
Non-Controlling Interests	-12	-19	-14	-20
Net Profit Attributable to JM	558	419	576	451

INCOME STATEMENT (Management View)

(€ Million)	(Excl. IFRS16)					(Excl. IFRS16)
	9M 23		9M 22		D	Q3 23		Q3 22		D
Net Sales and Services	22,451		18,392		22.1%	7,938		6,509		22.0%
Gross Profit	4,600	20.5%	3,887	21.1%	18.3%	1,630	20.5%	1,380	21.2%	18.1%
Operating Costs	-3,388	-15.1%	-2,864	-15.6%	18.3%	-1,176	-14.8%	-993	-15.3%	18.5%
EBITDA	1,213	5.4%	1,023	5.6%	18.5%	454	5.7%	388	6.0%	17.2%
Depreciation	-383	-1.7%	-335	-1.8%	14.1%	-134	-1.7%	-114	-1.7%	18.5%
EBIT	830	3.7%	688	3.7%	20.7%	320	4.0%	274	4.2%	16.7%
Net Financial Costs	-18	-0.1%	-16	-0.1%	12.4%	-4	-0.1%	-4	-0.1%	-0.1%
Other Profits/Losses	-36	-0.2%	-56	-0.3%	n.a.	-18	-0.2%	-31	-0.5%	n.a.
EBT	776	3.5%	616	3.4%	25.9%	298	3.8%	239	3.7%	24.6%
Income Tax	-186	-0.8%	-145	-0.8%	28.3%	-69	-0.9%	-56	-0.9%	23.6%
Net Profit	590	2.6%	471	2.6%	25.2%	228	2.9%	183	2.8%	24.9%
Non-Controlling Interests	-14	-0.1%	-20	-0.1%	-30.8%	-6	-0.1%	-10	-0.2%	-42.6%
Net Profit Attributable to JM	576	2.6%	451	2.5%	27.7%	222	2.8%	172	2.6%	29.0%
EPS (€)	0.92		0.72		27.7%	0.35		0.27		29.0%
EPS without Other Profits/Losses (€)	0.95		0.79		21.1%	0.37		0.31		17.3%

BALANCE SHEET

	(Excl. IFRS16)
(€ Million)	9M 23	2022	9M 22
Net Goodwill	616	613	603
Net Fixed Assets	5,056	4,589	4,257
Total Working Capital	-3,867	-3,832	-3,229
Others	207	132	155
Invested Capital	2,012	1,501	1,786
Total Borrowings	697	470	470
Financial Leases	9 8	8 2	3 6
Accrued Interest	6	1 4	3
Cash and Cash Equivalents	-1,761	-1,802	-1,272
Net Debt	-959	-1,236	-763
Non-Controlling Interests	262	265	266
Share Capital	629	629	629
Reserves and Retained Earnings	2,081	1,843	1,654
Shareholders Funds	2,971	2,737	2,548

CASH FLOW

(€ Million)	(Excl. IFRS16)
	9M 23	9M 22
EBITDA	1,213	1,023
Interest Payment	-9	-12
Other Financial Items	0	0
Income Tax	-205	-157
Funds From Operations	999	854
Capex Payment	-834	-626
Change in Working Capital	21	99
Others	-27	-52
Cash Flow	159	275

EBITDA BREAKDOWN

(€ Million)		IFRS16		Excl. IFRS16
	9M 23	Mg	9M 22	Mg	9M 23		Mg
Biedronka	1,353	8.6%	1,119	8.8%	1,095		6.9%
Hebe	2 7	8.2%	2 0	8.0%	6		1.7%
Distribution Portugal	268	5.9%	241	5.9%	213	4.7%
Ara	3 1	1.8%	4 2	3.3%	-9	n.a.
Others & Cons. Adjustments	-89	n.a.	-74	n.a.	-91	n.a.
JM Consolidated	1,591	7.1%	1,348	7.3%	1,213	5.4%

NET FINANCIAL COSTS

(€ Million)	IFRS16		Excl. IFRS16
	9M 23	9M 22	9M 23	9M 22
Net Interest	-7	-11	-7	-11
Interests on Capitalised Operating Leases	-128	-102	-	-
Exchange Differences	1	-17	-3	-1
Others	-8	-5	-8	-5
Net Financial Costs	-142	-135	-18	-16

SALES BREAKDOWN

(€ Million)		9M 23 9M 22		D %		Q3 23			Q3 22		D %
		% total		% total	excl. FX	Euro		% total		% total	excl. FX	Euro
Biedronka	15,810	70.4%	12,726	69.2%	21.7%	24.2%	5,494	69.2%	4,437	68.2%	17.4%	23.8%
Hebe	329	1.5%	252	1.4%	27.8%	30.5%	121	1.5%	8 9	1.4%	28.2%	35.0%
Pingo Doce	3,547	15.8%	3,259	17.7%		8.8%	1,282	16.1%	1,173	18.0%		9.3%
Recheio	1,003	4.5%	850	4.6%		18.1%	371	4.7%	337	5.2%		10.3%
Ara	1,750	7.8%	1,291	7.0%	48.7%	35.5%	666	8.4%	467	7.2%	42.4%	42.5%
Others & Cons. Adjustments	1 2	0.1%	1 4	0.1%		n.a.	5	0.1%	6	0.1%		n.a.
Total JM	22,451	100%	18,392	100%	21.2%	22.1%	7,938	100%	6,509	100%	17.4%	22.0%

SALES GROWTH

	Total Sales Growth						LFL Growth
	Q1 23	Q2 23	H1 23	Q3 23	9M 23	Q1 23	Q2 23	H1 23	Q3 23	9M 23
Biedronka
Euro	26.0%	23.1%	24.5%	23.8%	24.2%
PLN	28.3%	20.4%	24.0%	17.4%	21.7%	24.5%	17.0%	20.5%	12.8%	17.8%
Hebe
Euro	29.5%	26.7%	27.9%	35.0%	30.5%
PLN	31.9%	24.0%	27.5%	28.2%	27.8%	22.6%	14.2%	17.9%	17.7%	17.9%
Pingo Doce	9.4%	7.8%	8.6%	9.3%	8.8%	8.0%	7.2%	7.6%	8.4%	7.9%
Excl. Fuel	9.9%	8.6%	9.2%	9.6%	9.4%	8.4%	8.0%	8.2%	8.8%	8.4%
Recheio	29.2%	18.3%	23.2%	10.3%	18.1%	27.1%	16.4%	21.2%	9.5%	16.7%
Ara
Euro	29.4%	33.4%	31.6%	42.5%	35.5%
COP	50.8%	53.9%	52.4%	42.4%	48.7%	18.9%	17.4%	18.1%	9.3%	14.8%
Total JM
Euro	23.4%	21.0%	22.1%	22.0%	22.1%
Excl. FX	26.5%	20.4%	23.3%	17.4%	21.2%	21.2%	15.2%	18.0%	11.7%	15.8%

STORE NETWORK

	Openings			Closings	9M 23	9M 22
2022	Q1 23	Q2 23	Q3 23	9M 23
3,395	1 7	3 3	4 2	1 4	3,473	3,304
315	2	1 0	5	4	328	300
472	2	4	2	1	479	469
4 3	0	0	0	0	4 3	4 3
1,093	6 4	4 6	4 1	3	1,241	904

Sales Area (sqm)	2022	Openings			Closings / Remodellings	9M 23	9M 22
		Q1 23	Q2 23	Q3 23	9M 23
Biedronka *	2,373,630	12,323	23,827	27,655	-13,858	2,451,292	2,297,085
Hebe	81,068	485	2,351	1,170	1,035	84,039	77,266
Pingo Doce	551,250	1,413	4,164	1,260	-3,667	561,754	548,194
Recheio	139,381	0	0	0	-5,888	145,269	139,381
Ara	376,242	21,672	15,996	15,856	1,048	428,718	309,653

* Excluding the stores and selling area related to 16 Micro Fulfilment Centres (MFC) to supply Biek's operation (ultra-fast delivery)

CAPEX

(€ Million)	9M 23	Weight	9M 22	Weight
Biedronka	344	44%	292	51%
Distribution Portugal	179	23%	151	26%
Ara	190	24%	89	15%
Others	77	10%	45	8%
Total CAPEX	790	100%	577	100%

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

3. INCOME STATEMENT

Reconciliation notes

Following ESMA guidelines on Alternative Performance Measures from October 2015

Income Statement in this Release (Management View)	Consolidated Income Statement by Functions (in Consolidated Report and Accounts) First Nine Months 2023 Results
Net Sales and Services	Net sales and services
Gross Profit	Gross profit
Operating Costs	Includes headings of Distribution costs; and Administrative costs; excluding €-660 million related with Depreciations and amortisations (note - Segments Reporting)
EBITDA
Depreciation	Value reflected in the note - Segments Reporting
EBIT
Net Financial Costs	Net financial costs
Other Profits/Losses	Includes headings of Other operating profits/losses; Gains (losses) on 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

Following ESMA guidelines on Alternative Performance Measures from October 2015

Balance Sheet in this Release	Consolidated Balance Sheet at 30 September 2023 (in Consolidated Report and Accounts)
Net Goodwill	Amount reflected in note Intangible assets
Net Fixed Assets	Includes the headings Tangible and Intangible assets (excluding the Net goodwill of €616 million); and adding the Financial leases (€121 million)
Net Rights of Use (RoU)	Includes the heading of Net rights of use excluding the Financial leases (€121 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, €-42 million related to 'Others' due to its operational nature. Excludes €79 million of short-term investments that do not qualify as cash equivalents (note - Debtors, accruals and deferrals); €-8 million related with Interest accruals and deferrals heading (note - Net financial debt)
Others	Includes the headings Investment property; Investments in joint ventures and associates; Other financial investments; Non-Current trade debtors; Accrued income and Deferred costs; Deferred tax assets and liabilities; Income tax receivable and payable; Provisions for risks and contingencies. Excludes €-42 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: €98 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 €-8 million related with Interest accruals and deferrals (note - Net financial debt)
Cash and Cash Equivalents	Includes the heading Cash and cash equivalents and €79 million of Short-term investments that do not qualify as cash equivalents, under accounting standards (IAS 7), (note - Debtors, accruals and deferrals)
Net Debt
Non-Controlling Interests	Non-Controlling interests
Share Capital	Share capital
Reserves and Retained Earnings	Includes the headings Share premium; Own shares; Other reserves; and Retained earnings

Shareholders' Funds

CASH FLOW

Following ESMA guidelines on Alternative Performance Measures from October 2015

Cash Flow in this Release	Consolidated Cash Flow Statement (in Consolidated Report and Accounts) First Nine Months 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 (€28 million)
Capitalised Operating Leases Payment	Included in the heading Leases paid, excluding €8 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 (€-25 million)
Change in Working Capital	Includes Changes in working capital added from headings which did not generate cash flow (€-1 million)
Others	Includes the headings Disposal of business (when applicable); and Profit and losses which generated cash flow, although not having operational nature (€-28 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 (€-25 million) and deducted from the payment of financial leases (€8 million), both according with previous accounting standards; and also deducted from headings which did not generate cash flow (€-1 million)

October, 2023 | 14

FIRST 9 MONTHS RESULTS | RELEASE