Jeronimo Martins — Interim / Quarterly Report 2023

Nov 29, 2023

Jerónimo Martins | R&A First 9 Months 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	8
5.1. The Impact of IFRS 16 on Financial Statements	8
5.2. Sales Detail	9
5.3. Stores Network	10
5.4. Definitions	10
6. Reconciliation Notes	12
7. Information Regarding Individual Financial Statements	13

II – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Consolidated Financial Statements	15
2. Notes to the Financial Statements	19

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.'

I - CONSOLIDATED MANAGEMENT REPORT

1. 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 remodelling 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.

2. Performance Analysis by Banner

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.

additions) and remodelled 270 locations.

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

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.

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.

23.1%

Q1 Q2 Q3 Q4 Q1 Q2 Q3

27.1%

16.4%

9.5%

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

32.1%

Recheio LFL

27.0% 28.3%

2022 2023

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.

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. Consolidated Financial Information Analysis

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

At the end of September, the Group's net cash position (excluding liabilities from capitalized operating leases) was c. €959 MN.

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

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

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%

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

4. 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.

Lisbon, 24 October 2023

The Board of Directors

5. Management Report Appendix

5.1. The impact of IFRS 16 on Financial Statements

Income Statement by Functions

(€ Million)		IFRS16	Excl. IFRS16
	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

	(Excl. IFRS16)
(€ Million)	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

	IFRS16				Excl. IFRS16
(€ Million)	9M 23	Mg	9M 22	Mg	9M 23	Mg	9M 22	Mg
Biedronka	1,353	8.6%	1,119	8.8%	1,095	6.9%	899	7.1%
Hebe	2 7	8.2%	2 0	8.0%	6	1.7%	2	0.7%
Distribution Portugal	268	5.9%	241	5.9%	213	4.7%	187	4.6%
Ara	3 1	1.8%	4 2	3.3%	-9	n.a.	1 1	0.9%
Others & Cons. Adjustments	-89	n.a.	-74	n.a.	-91	n.a.	-76	n.a.
JM Consolidated	1,591	7.1%	1,348	7.3%	1,213	5.4%	1,023	5.6%

Financial Results

(€ 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

5.2. Sales Detail

(€ 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%

5.3. Stores Network

Number of Stores	2022		Openings		Closings	9M 23	9M 22
		Q1 23	Q2 23	Q3 23	9M 23
Biedronka *	3,395	1 7	3 3	4 2	1 4	3,473	3,304
Hebe	315	2	1 0	5	4	328	300
Pingo Doce	472	2	4	2	1	479	469
Recheio	4 3	0	0	0	0	4 3	4 3
Ara	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)

5.4. 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 Nine Months 2023
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 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 6)	Consolidated Balance Sheet at 30 September 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 €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 10 - Debtors, accruals and deferrals); €-8 million related with Interest accruals and deferrals heading (note 16 - 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 16 - Financial net 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 10 - 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 6)	Consolidated Cash Flow Statement (in Consolidated Financial Statements) 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)

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 Nine Months 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.

1. Consolidated Financial Statements
CONSOLIDATED INCOME STATEMENT BY FUNCTIONS	15
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	15
CONSOLIDATED BALANCE SHEET	16
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY	17
CONSOLIDATED CASH FLOW STATEMENT	18
Index to the Notes to the Consolidated Financial Statements	Page
1. Activity	19
2. Accounting policies	19
3. Segments reporting	20
4. Operating costs by nature	21
5. Net financial costs	22
6. Income tax recognised in the income statement	22
7. Tangible assets, intangible assets, investment property and right-of-use assets	23
8. Joint ventures and associates	23
9. Derivative financial instruments	24
10. Trade debtors, accrued income and deferred costs	24
11. Cash and cash equivalents	24
12. Dividends	24
13. Basic and diluted earnings per share	24
14. Borrowings	25
15. Lease liabilities	25
16. Financial net debt	25
17. Provisions and employee benefits	25
18. Trade creditors, accrued costs and deferred income	26
19. Contingencies	26
20. Related parties	27

21. Events after the balance sheet date 27

II – Condensed Consolidated Financial Statements

CONSOLIDATED INCOME STATEMENT BY FUNCTIONS

For the periods ended 30 September 2023 and 2022

					€ Million
		September	September	3rd Quarter	3rd Quarter
	Notes	2023	2022	2023	2022
Sales and services rendered	3	22,451	18,392	7,938	6,509
Cost of sales	4	(17,851)	(14,505)	(6,308)	(5,129)
Gross profit		4,600	3,887	1,630	1,380
Distribution costs	4	(3,303)	(2,824)	(1,157)	(981)
Administrative costs	4	(367)	(297)	(119)	(98)
Other operating profits/losses	4.1	(36)	(56)	(18)	(31)
Operating profit		895	711	337	270
Net financial costs	5	(142)	(135)	(64)	(50)
Profit before taxes		753	576	272	220
Income tax	6	(182)	(139)	(65)	(53)
Profit before non-controlling interests		570	437	207	167
Attributable to:
Non-controlling interests		12	19	5	10
Jerónimo Martins Shareholders		558	419	202	157
Basic and diluted earnings per share - euros	13	0.8878	0.6661	0.3207	0.2502

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the periods ended 30 September 2023 and 2022

				€ Million
	September	September	3rd Quarter	3rd Quarter
	2023	2022	2023	2022
Net profit	570	437	207	167
Other comprehensive income:
Change in fair value of equity instruments	2	1	4	0
Items that will not be reclassified to profit or loss	2	1	4	0
Currency translation differences	13	(49)	(46)	(31)
Change in fair value of cash flow hedges	1	0	3	(0)
Change in fair value of hedging instruments on foreign operations	(15)	(14)	5	2
Related tax	0	(3)	(4)	(2)
Items that may be reclassified to profit or loss	(1)	(66)	(42)	(31)
Other comprehensive income, net of income tax	1	(65)	(39)	(30)
Total comprehensive income	571	373	168	137
Attributable to:
Non-controlling interests	12	19	5	10
Jerónimo Martins Shareholders	559	354	163	127
Total comprehensive income	571	373	168	137

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

CONSOLIDATED BALANCE SHEET

As at 30 September 2023 and 31 December 2022

			€ Million
		September	December
	Notes	2023	2022
Assets
Tangible assets	7	4,790	4,340
Intangible assets	7	761	755
Investment property	7	9	9
Right-of-use assets	7	2,953	2,526
Biological assets		7	6
Investments in joint ventures and associates	8	79	16
Other financial investments		2	17
Trade debtors, accrued income and deferred costs	10	59	58
Derivative financial instruments	9	1	‐
Deferred tax assets		202	201
Total non-current assets		8,864	7,928
Inventories		1,515	1,493
Biological assets		18	12
Income tax receivable		80	35
Trade debtors, accrued income and deferred costs	10	585	593
Derivative financial instruments	9	5	2
Cash and cash equivalents	11	1,682	1,781
Total current assets		3,885	3,917
Total assets		12,748	11,845
Shareholders' equity and liabilities
Share capital		629	629
Share premium		22	22
Own shares		(6)	(6)
Other reserves		(183)	(183)
Retained earnings		2,081	1,869
		2,544	2,331
Non-controlling interests		249	254
Total shareholders' equity		2,793	2,585
Borrowings	14	224	238
Lease liabilities	15	2,645	2,248
Trade creditors, accrued costs and deferred income	18	3	4
Derivative financial instruments	9	‐	5
Employee benefits	17	74	69
Provisions for risks and contingencies	17	76	82
Deferred tax liabilities		71	90
Total non-current liabilities		3,093	2,735
Borrowings	14	473	232
Lease liabilities	15	492	430
Trade creditors, accrued costs and deferred income	18	5,807	5,799
Derivative financial instruments	9	4	9
Income tax payable		86	55
Total current liabilities		6,862	6,525
Total shareholders' equity and liabilities		12,748	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 September 2023 and 2022

										€ Million
	Shareholders' equity attributable to Shareholders of Jerónimo Martins, SGPS, S.A.
					Other reserves				Non controlling interests	Shareholders' equity
	Share capital	Share premium	Own shares	Cash flow hedge	Fair Value of financial assets	Currency translation reserves	Retained earnings	Total
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	‐	‐	‐	‐	‐	(52)	‐	(52)	‐	(52)
Change in fair value of hedging instruments on foreign operations	‐	‐	‐	‐	‐	(14)	‐	(14)	‐	(14)
Change in fair value of equity instruments	‐	‐	‐	‐	1	‐	‐	1	‐	1
Other comprehensive income	-	-	-	‐	1	(66)	-	(65)	-	(65)
Net profit	‐	‐	‐	‐	‐	‐	419	419	19	437
Total comprehensive income	-	-	-	‐	1	(66)	419	354	19	373
Dividends	‐	‐	‐	‐	‐	‐	(493)	(493)	(17)	(511)
Balance Sheet as at 30 September 2022	629	22	(6)	‐	1	(206)	1,698	2,139	255	2,394
				,
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	‐	‐	‐	‐	‐	13	‐	13	‐	13
Change in fair value of cash flow hedging				1				1		1
Change in fair value of hedging instruments on foreign operations	‐	‐	‐	‐	‐	(15)	‐	(15)	‐	(15)
Change in fair value of equity instruments	‐	‐	‐	‐	2	‐	‐	2	‐	2
Other comprehensive income	-	-	-	1	2	(2)	‐	1	‐	1
Net profit	‐	‐	‐	‐	‐	‐	558	558	12	570
Total comprehensive income	-	-	-	1	2	(2)	558	559	12	571
Dividends (note 12)	‐	‐	‐	‐	‐	‐	(346)	(346)	(17)	(363)
Balance Sheet as at 30 September 2023	629	22	(6)	1	-	(183)	2,081	2,544	249	2,793

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

CONSOLIDATED CASH FLOW STATEMENT

For the periods ended 30 September 2023 and 2022

			€ Million
		September	September
	Notes	2023	2022
Net results		558	419
Adjustments for:
Non-controlling interests		12	19
Income tax		182	139
Depreciations and amortisations		660	581
Net financial costs		142	135
Gains/losses on derivatives instruments at fair value		(7)	‐
Gains/losses in tangible, intangible and right-of-use assets		15	2
Operating cash flow before changes in working capital		1,563	1,294
Changes in working capital:
Inventories		8	(278)
Trade debtors, accrued income and deferred costs		(0)	(7)
Trade creditors, accrued costs and deferred income		20	370
Provisions and employee benefits		(4)	15
Cash generated from operations		1,585	1,394
Income taxes paid		(205)	(157)
Cash flow from operating activities		1,381	1,236
Investment activities
Disposals of tangible and intangible assets		1	6
Interest received		33	6
Acquisition of tangible and intangible assets		(763)	(593)
Acquisition of other financial investments and investment property		(0)	(17)
Acquisition of businesses, net of cash acquired		(46)	(3)
Short-term investments that don't qualify as cash equivalents	10	(59)	(9)
Cash flow from investment activities		(834)	(608)
Financing activities
Loans interest paid		(40)	(17)
Leases interest paid	5	(131)	(103)
Net change in loans	14	153	14
Leases paid	15	(258)	(225)
Dividends paid	12	(363)	(511)
Cash flow from financing activities		(638)	(843)
Net changes in cash and cash equivalents		(91)	(215)
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		(91)	(215)
Effect of currency translation differences		(8)	(47)
Cash and cash equivalents at the end of September	11	1,682	1,232

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

				€ Million
	September	September	3rd Quarter	3rd Quarter
	2023	2022	2023	2022
Cash Flow from operating activities	1,381	1,236	761	509
Cash Flow from investment activities	(834)	(608)	(320)	(216)
Cash Flow from financing activities	(638)	(843)	(87)	(99)
Cash and cash equivalents changes	(91)	(215)	354	194

*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 24 October 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.

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, note 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 nine months 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

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

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

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 nine months 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 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 2023
IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (amendments)	August 2023	1 January 2025

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 nine months 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 September 2023	4.6283	4,328.25
Average rate for the period	4.5776	4,742.20
Rate at 30 September 2022	4.8483	4,417.86
Average rate for the period	4.6742	4,321.43

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. Since the business units in the distribution area in Portugal share a set of competences, the Group analyses, on a quarterly basis, its segments in an aggregate performance perspective. In addition, the Group also separates the business units 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 Distribution: comprises the business unit of JMR (Pingo Doce supermarkets) and 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.

	Portugal Distribution		Poland Retail			Others, eliminations Colombia Retail and adjustments		Total JM Consolidated
	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Net sales and services	4,546	4,105	15,810	12,726	1,750	1,291	345	270	22,451	18,392
Inter-segments	1	1	‐	‐	‐	‐	(1)	(1)	‐	‐
External customers	4,545	4,104	15,810	12,726	1,750	1,291	346	271	22,451	18,392
Operational cash flow (EBITDA)	268	241	1,353	1,119	31	42	(62)	(54)	1,591	1,348
Depreciations and amortisations	(152)	(134)	(408)	(367)	(57)	(46)	(43)	(34)	(660)	(581)
Earnings before interest and taxes (EBIT)	117	107	944	751	(26)	(4)	(105)	(88)	931	766
Other operating profits/losses									(36)	(56)
Financial results and gains in investments									(142)	(135)
Income tax									(182)	(139)
Minority interests									(12)	(19)
Net result attributable to JM									558	419
Total assets (1)	3,009	2,996	7,234	7,060	1,530	1,047	975	743	12,748	11,845
Total liabilities (1)	2,479	2,460	5,993	5,800	1,555	1,026	(73)	(26)	9,955	9,260
Investments in tangible and intangible assets	179	152	320	272	190	89	30	25	720	538

Detailed information by operating segments as at September 2023 and 2022

(1) The comparative report is 31 December of 2022

Reconciliation between EBIT and operating profit

	2023	2022
EBIT	931	766
Other operating profits/losses	(36)	(56)
Operational result	895	711

4. Operating costs by nature

	Sep 2023	Sep 2022
Cost of goods sold and materials consumed	(17,604)	(14,305)
Changes in inventories of finished goods and work in progress	26	11
Net cash discount and interest paid to suppliers	45	40
Electronic payment commissions	(57)	(45)
Other supplementary costs	(231)	(184)
Supplies and services	(842)	(734)
Advertising costs	(97)	(81)
Rents	(20)	(13)
Staff costs	(1,849)	(1,549)
Transportation costs	(240)	(227)
Depreciation and amortisation of tangibles and intangibles assets	(372)	(331)
Depreciation of right-of-use assets	(288)	(251)
Profit/loss with tangible and intangible assets	(16)	(4)
Profit/loss with right-of-use assets	1	2
Other natures of profit/loss	(14)	(11)
Total	(21,556)	(17,682)

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:

	Sep 2023	Sep 2022
Solidarity measures with Ukraine and other donations	-	(9)
Increase of provisions for legal contingencies	(13)	(13)
Costs with organizational restructuring programmes	(14)	(9)
Assets write-offs and gains/losses in sale of tangible assets	(10)	(0)
World Youth Day	(5)	(3)
Employees exceptional awards	‐	(22)
Fair value of energy price fixing derivative instruments	7	‐
Total	(36)	(56)

5. Net financial costs

	Sep 2023	Sep 2022
Loans interest expense	(38)	(17)
Leases interest expense	(131)	(103)
Interest received	34	7
Net foreign exchange	1	1
Net foreign exchange on leases	4	(17)
Other financial gains and losses	(8)	(5)
Fair value of financial investments held for trade:
Derivative instruments (note 9)	(4)	(1)
Total	(142)	(135)

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 September, 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

	Sep 2023	Sep 2022
Current income tax
Current tax of the year	(208)	(144)
Adjustment to prior year estimation	8	3
Total	(200)	(141)
Deferred tax
Temporary differences created and reversed	23	0
Change to the recoverable amount of tax losses and temporary differences from previous years	(3)	(2)
Total	19	(2)
Other gains/losses related to tax
Impact of changes in estimates for tax litigations	(2)	4
Total	(2)	4
Total income tax	(182)	(139)

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	121	5	‐	82	207
Increases	704	16	‐	177	897
Contracts update	‐	‐	‐	473	473
Disposals and write-offs	(16)	(0)	‐	(0)	(16)
Contracts cancellation	‐	‐	‐	(17)	(17)
Transfers	5	(5)	‐	(0)	0
Depreciation, amortisation and impairment losses	(363)	(10)	‐	(288)	(660)
Net value at 30 September 2023	4,790	761	9	2,953	8,514

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 September 2023 include Goodwill in the amount of €616 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 €207 million, which includes an increase of €3 million related to Goodwill from businesses in Poland.

8. Joint ventures and associates

	Joint ventures		Associates		Total
	sep 2023	sep 2022	sep 2023	sep 2022	sep 2023	sep 2022
Opening balance	16	13	‐	‐	16	13
Application of the equity method:
Net results	(1)	‐	‐	‐	‐	‐
Dividends and other income received	‐	‐	‐	‐	(1)	‐
Other Increases/(reductions)	13	3	33	1	46	4
Transfers from Other investments	‐	‐	17	‐	17	‐
Closing balance	28	15	50	1	79	16

On 29 May 2023, Jerónimo Martins – Agro-Alimentar, S.A. (JMA) signed a "Partnership Agreement" (Agreement) with the Luís Vicente Group. This Agreement sets the incorporation of a company under joint control for the production of certain fruit varieties, foreseeing an investment from 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 Placement of Shares (Private Placement) with Andfjord Salmon AS, a Company in which the Group held 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, in the amount of NOK (Norwegian crowns) 385 million (equivalent to €33 million), becoming the holder of a total 25.1% of the share capital. This interest in Andfjord is now measured in the consolidated financial statements in accordance with the equity method (previously it was measured at fair value through other comprehensive income and included in the Balance sheet in the line Other financial investments), having been ascertain a Goodwill in the amount of NOK 308 million (equivalent to €27 million).

In the specific case of the investment in Andfjord, considering that at the date of these consolidated financial statements the financial information related to September 2023 had not yet been published, it was used the most recent published information, related to the previous quarter (June 2023).

9. Derivative financial instruments

	Sep 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 million EUR	-	-	0	-	1.5 million EUR	0	-	0	-
Currency forwards - stock purchase (COP/USD)	1,5 million USD	-	-	0	-	1 million USD	0	-	0	-
Currency forwards - stock purchase (EUR/USD)	-	-	-	-	-	0.05 million USD	-	-	-	-
Currency forwards - stock purchase (PLN/USD)	11.7 million EUR	-	-	0	-	-	-	-	-	-
Currency forwards - treasury applications (PLN/EUR)	89.8 million EUR	-	-	3	-	99.7 million EUR	2	-	0	-
Currency forwards - intercompany loans (EUR/COP)	215,699 million COP	1	-	-	-	-	-	-	-	-
Commodities swap - energy purchase (PLN/EUR)	n.a.	-	1	-	-	n.a.	-	-	-	5
Cash flow hedging derivatives
Currency forwards - stock purchase (PLN/USD)	20.7 million USD	1	-	0	-	47.1 million USD	0	-	0	-
Currency forwards - stock purchase (COP/EUR)	3.1 million EUR	-	-	0	-	2.2 million EUR	0	-	0	-
Currency forwards - stock purchase (COP/USD)	2.2 million USD	0	-	0	-	1.7 million USD	0	-	0	-
Foreign operation investments hedging derivatives
Currency forwards (PLN)	800 million PLN	3	-	1	-	1,006 million PLN	-	-	9	-
Total derivatives held for trading		1	1	3	-		2	-	0	5
Total hedging derivatives		4	-	1	-		0	-	9	-
Total assets/liabilities derivatives		5	1	4	-		2	-	9	5

10. Trade debtors, accrued income and deferred costs

	Sep 2023	Dec 2022
Non-current
Other debtors	56	56
Deferred costs	3	3
Total	59	58
Current
Commercial customers	67	66
Other debtors	172	152
Other taxes receivable	1	9
Accrued income and deferred costs	266	345
Short-term investments that don't qualify as cash equivalents	79	21
Total	585	593

11. Cash and cash equivalents

	Sep 2023	Dec 2022
Bank deposits	393	845
Short-term investments	1,284	932
Cash in hand	4	4
Total	1,682	1,781

12. 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.

13. Basic and diluted earnings per share

Sep 2023	Sep 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 558	419
Basic and diluted earnings per share – Euros 0.8878	0.6661

14. 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 September 2023.

Jeronimo Martins Polska S.A. made a scheduled repayment of a loan in the amount of 50 million zloty and terminate a contract of 6 million american dollars. Payments of 74 million zloty, around €16 million, were made in relation to capital repayments of a medium and long-term financing.

Jeronimo Martins Colombia SAS paid 80,000,000 thousand colombian pesos, around €17 million, related to capital repayments of three medium and long-term loans. YTD September, Jeronimo Martins Colombia, SAS increased the use of credit lines by 832,747 million colombian pesos, around €192 million.

14.1. Current and non-current loans

Sep 2023	Opening balance	Cash flows	Transfers	Foreign exchange difference	Closing balance
Non-current loans
Bank loans	238	(17)	(16)	19	224
Total	238	(17)	(16)	19	224
Current loans
Bank loans	232	170	16	54	473
Total	232	170	16	54	473

15. Lease liabilities

Sep 2023	Current	Non current	Total
Opening balance	430	2,248	2,678
Increases (new contracts)	18	159	177
Payments	(257)	(1)	(258)
Transfers	215	(215)	‐
Contracts change/ cancel	75	380	455
Foreign exchange difference	11	73	84
Closing balance	492	2,645	3,137

16. 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:

	Sep 2023	Dec 2022
Non-current loans (note 14.1)	224	238
Current loans (note 14.1)	473	232
Financial lease liabilities - non-current (note 15)	2,645	2,248
Financial lease liabilities - current (note 15)	492	430
Derivative financial instruments (note 9)	(2)	12
Interest on accruals and deferrals	8	2
Cash and cash equivalents (note 11)	(1,682)	(1,781)
Short-term investments that don't qualify as cash equivalents (note 10)	(79)	(21)
Total	2,079	1,360

17. Provisions and employee benefits

2023	Risks and contingencies	Employee benefits
Balance as at 1 January	82	69
Set up, reinforced and transfers	19	8
Foreign exchange difference	1	0
Used	(25)	(4)
Balance as at 30 September	76	74

18. Trade creditors, accrued costs and deferred income

	Sep 2023	Dec 2022
Non-current
Trade payables	3	3
Accrued costs and deferred income	1	1
Total	3	4
Current
Trade payables	4,480	4,579
Non-trade payables	400	419
Other taxes payables	145	122
Contracts liabilities with customers	14	15
Refunds liabilities to customers	3	1
Accrued costs and deferred income	765	663
Total	5,807	5,799

19. Contingencies

Contingent liabilities

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

Competition Authorities proceedings:

• 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, appealed 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, 2013 and 2014 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 several collective 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. In any circumstances, safeguarding the legitimate interests of the Consumer is always a priority for Pingo Doce. As such, the Company is confident that there is no ground for these actions and has contested the actions, which are still at a preliminary stage.

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.

	Joint ventures		Associates		Other related parties(*)
	Sep 2023	Sep 2022	Sep 2023	Sep 2022	Sep 2023	Sep 2022
Sales and services rendered	‐	‐	20	18	0	0
Stocks purchased and services supplied	4	5	(0)	(0)	77	78
	Joint ventures		Associates		Other related parties(*)
	Sep 2023	Dec 2022	Sep 2023	Dec 2022	Sep 2023	Dec 2022
Trade debtors, accrued income and deferred costs	0	0	6	5	0	0
Trade creditors, accrued costs and deferred income	1	0	‐	‐	26	25

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

(*) 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, 24 October 2023

The Certified Accountant The Board of Directors

Jerónimo Martins | R&A First 9 Months 2023

Consolidated Financial Statements 28 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