Grupo Casas Bahia (BHIA3) investor relations material

Business overview and market position

• Over 70 years as a leading destination for electronics, appliances, furniture, and financial solutions in Brazil.

• Largest omnichannel player with R$44.7B GMV projected for 2025 and 1,042 stores nationwide.

• Holds 19% market share in core categories, with strong brand recognition and a robust logistics network.

• Credit portfolio of R$6.6B, with proprietary BNPL and fintech services reaching 8.8M accounts.

• Marketplace features 175k sellers and 91M SKUs, supporting both 1P and 3P sales.

Transformation strategy and operational improvements

• Shifted from a generalist to a specialist strategy, focusing on core categories and profitability.

• Transformation plan (CB25) included operational levers: cost reduction, store footprint optimization, and migration of low-margin categories to 3P.

• Closed 91 stores, reduced 15,000 positions, and improved logistics efficiency by closing or readjusting 15 distribution centers.

• Achieved 23% growth in credit portfolio and 27% growth in financial services revenue vs. 2023.

• SG&A/revenue reduced by 180 bps, with significant labor and outsourced service cost savings.

Financial performance and capital structure

• Free cash flow improved from -R$3.1B in 2022 to R$648M in 2023, with further growth projected.

• Net leverage reduced from 2.2x to 0.4x, with R$3.8B net debt reduction and R$7.7B in cash savings through 2030.

• Debt maturity extended from 22 to 72 months, with lower spreads and interest costs.

• Adjusted EBITDA margin increased from 4.3% in 2023 to 8.8% in 2025.

• Capital allocation now based on ROIC, with disciplined investments in technology and productivity.