Grupo Casas Bahia (BHIA3) Investor presentation summary

Business overview and market position

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

• Largest omnichannel player in its sector, with 1,042 stores and a 19% market share in core categories.

• Serves 116 million customers, representing about 95% of Brazil's economically active population.

• Strong brand recognition, top-of-mind for 20 consecutive years.

• Market leader in TVs, smartphones, and white goods, with regional dominance in several states.

Transformation and operational improvements

• Underwent a major transformation plan starting in 2023, focusing on profitability and capital discipline.

• Shifted from a generalist to a specialist platform, prioritizing core categories and operational efficiency.

• Achieved sustainable growth in physical stores and credit, with a commitment to profitability.

• Implemented AI-driven strategies to boost productivity and enhance customer experience.

• Closed underperforming stores, optimized logistics, and reduced labor expenses significantly.

Financial performance and capital structure

• Gross GMV projected at R$44.7 billion in 2025, with strong growth in financial services and credit portfolio.

• Free cash flow improved from negative to R$2.2 billion by 2025, reflecting operational turnaround.

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

• Structural reduction in financial expenses through debt restructuring and lower spreads.

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