Atacadão (CRFB3) Corporate Presentation summary

NewCo overview

• Positioned as Brazil's leading food retailer, surpassing R$100 billion in sales and ranking among the country's top 10 companies by revenue.

• Operates 1,189 points of sale, making it the largest private employer in Brazil and the top supply acquirer with over R$75 billion in annual purchases.

• Offers a multi-banner strategy covering all shopping occasions and income classes, including formats like Cash & Carry, hypermarkets, supermarkets, convenience, and club stores.

• Achieves regional complementarity and relevance, with a 23.5% national market share and strong presence across all regions.

• Digital acceleration enables 50% of Brazilians to access stores within 5 km, with significant e-commerce penetration and data monetization initiatives.

Value creation and synergies

• Targets at least R$2 billion in annual synergies by 2025 through sales growth, sourcing improvements, supply chain optimization, and expense efficiencies.

• Store conversion plan involves R$2.1 billion investment to rebrand and upgrade 124 Grupo BIG stores, aiming for higher sales density and EBITDA margins.

• Enhanced sourcing conditions and scale expected to yield 1% cost base improvement, with additional savings from indirect expense optimization.

• Business accelerators include expanding Banco Carrefour's financial services and scaling Sam's Club, which targets affluent customers with a differentiated value proposition.

• Integration plan spans 18 months, focusing on connecting systems, converting stores, and consolidating operations to ensure synergy capture by 2025.

Acquisition final terms and governance

• Acquisition valued at R$7.5 billion, with 70% paid in cash and 30% in shares; R$4.4 billion disbursed at closing, plus an upfront payment of R$900 million.

• Proforma net debt to FY21 adjusted EBITDA stands at 1.8x, with a new shareholding structure featuring Carrefour SA, Peninsula, Advent, Walmart, and a 68% free float.

• Governance strengthened with a diverse, experienced management team and a board comprising 23% independent members and 31% women.

• Customer-centric culture framework emphasizes agility, cooperation, and high standards, supporting the integration and transformation process.

• Focus remains on digitalization, simplification, and expansion alongside integration efforts.