2023 Tax Transparency Report

Casas Bahia Group Tax Transparency Report

The year 2023 brought major challenges for Brazilian retail companies in the face of an economic climate marked by high interest rates with a direct impact on local consumption. Despite this, the Casas Bahia Group views this scenario of adversity with optimism due to its recognized capacity for transformation and overcoming, especially given the arrival of our new CEO, Renato Franklin, and the implementation of a new strategy by the company aimed at freeing up capital.

Among the main highlights of our strategy, it is worth mentioning the focus on the core category, the reduction in the turnover period of our inventories, the optimization of the company's credit, the review and elimination of categories of goods sold

in 1P (own), with their rearrangement to 3P (marketplace) and the closure of loss-making stores or geographically close stores, linked to the review of some distribution centers, as well as their staff (footprint).

The company's tax strategy is in line with this new guideline, with positive results already reflected in the reduction of balances and the monetization of our tax credits. In 2023, R$ 2.719 billion in tax credits were monetized, of which R$ 677 million refers to ICMS credits transferred to third parties. The elimination of 1P product categories has also led to an optimization of taxation on our inventories.

Regardless of the changes made to face the challenges of the current situation, in its more than 60 years of existence, the Casas Bahia Group has always kept intact its purpose of being the relationship and consumption platform for Brazilians wherever, whenever and however they want, incorporating social, environmental and governance aspects into the way we operate.

That is why we are pleased and proud to share our Tax Transparency Report with our stakeholders for the second year. This essential document is the result of a long process of building sustainability and governance and a concrete form of transparency and appreciation of the social role of the Casas Bahia Group as

a relevant agent of transformation in the communities where we operate, contributing to the development of Brazil.

We recognize the importance of Casas Bahia Group to Brazilian society. Thus, acting in accordance with complex tax legislation in order to pay taxes correctly is part of our culture and an inseparable part of our social responsibility to the country.

As we emphasized last year, the Report is also a great opportunity to share with society the complexity and volume of work involved in complying with tax obligations in Brazil.

In 2023, we collected R$ 2.642 billion in taxes, of which R$ 841.0 million was paid to federal coffers, R$ 1.682 billion to state coffers and R$

118.7 million into municipal coffers. We have sent more than 38,000 files to the Federal, State and Municipal Tax Authorities, and more than 30 terabytes of data from our Casas Bahia, Ponto Frio and Extra retail companies; Bartira, in industry; banQi, as fintechs, and AsapLog, responsible for a wide range of logistics services.

In addition to this direct role, we promote the dissemination of a culture of compliance with tax legislation, such as the procedures for accrediting and operating sellers in our marketplace and promoting tax citizenship.

That is why we are proud to share our 2023 Tax Transparency Report with you!

The company's tax strategyis in line with this new guideline, with positive results already reflected

Elcio Mitsuhiro Ito

Casas Bahia Group Tax Transparency Report

Message from the Head of Tax

The Casas Bahia Group was a pioneer among companies in the retail sector when it presented its first Tax Transparency Report to its stakeholders in 2023. Following this vanguard, for the second year running we are presenting our Tax Transparency Report as a complement to the Annual Sustainability Report, but exclusively dedicated to showing the tax impacts of our operations, in line with the best corporate governance and tax governance practices and with the company's social commitment to encouraging transparent and sustainable tax practices.

We believe that the tax area is fully integrated into the business and has a transversal function that impacts the entire value chain. That is why tax compliance involves the company taking care of actions that range from business planning, purchasing and contracting with suppliers and making sales to clients to calculating, assessing and completing ancillary obligations to pay our taxes.

In the tax area, we have 107 Employees committed to Casas Bahia's mission of "doing the right thing in the right way", which of course includes paying taxes. In addition, we combine a highly trained team with investments in technology to guarantee consistent procedures and corporate systems that reduce error margins and add reliability and traceability to our information.

Thanks to this set of factors, in 2023, we allocated more than 58,000 hours of our team's work so that tax obligations were

correctly met before the Federal Government, States and Municipalities. More than 40 million invoices were issued; with more than 115 million items traded, more than 400 visits to the Tax Authorities, always guided by the values of transparency, ethics and cooperation with the Government.

Technology is also an important element in this equation, as it reduces error margins and adds reliability and traceability to the company's tax information that is provided to the tax authorities (Casas Bahia Group manages 30 terabytes of data that is processed and stored to report to the tax authorities)

In addition to taking care with the calculation of taxes, the Casas Bahia Group is always aware of the main

issues pertaining to the tax scenario, with emphasis on the work of our team in initiatives to improve the tax system, such as the discussions related to the Reform of Consumption Taxation, introduced in the Brazilian legal system in 2023 by Constitutional Amendment 132, as well as its work in the discussions held within the scope of the main Cooperative compliance program in Brazil, CONFIA.

Our second Tax Transparency Report embodies our values of transparency and our commitment to best governance practices.

Have a good reading! And share your criticisms and suggestions with us - we are totally dedicated to you!

We believe that the tax area is fully integratedinto

the business and has a transversal functionthat impacts the entire value chain.

Alessandra Heloise Vieira

Casas Bahia Group Tax Transparency Report

This is the second year that we have consolidated our tax information and presented it to society in our Tax Transparency Report as a complement to the Casas Bahia Group's annual report. Publication is in accordance with the GRI Standards, in particular in accordance with GRI-207 and the disclosure of taxes, unlike the financial statement, is preferably on a cash basis.

For us, the correct payment of taxes is a way for companies to contribute to society, not only by paying the taxes they are responsible for, but also by encouraging their suppliers, clients and employees to do so in accordance with best practices and high standards of tax compliance.

In this context, the Casas Bahia Group aligns itself with the GRI-207 and IFRS-S1Standards, as well as the ESG recommendations of the B-Team, which is a global team that brings together companies and civil society with the aim of thinking about new ways of doing business that are allied to people and the planet, formulating guiding principles for responsible tax practice.

Based on consolidated strategies for understanding and disclosing tax results, we have prepared this Tax

Transparency Report to demonstrate how much and how we contribute to Brazilian society by complying with our tax obligations and encouraging the creation of an environment of transparent and sustainable corporate practices. The document represents the materialization of our commitment to a fairer, more ethical and responsible society.

This report structure is the same as the one presented in the previous year and has been purposely maintained to give our stakeholders a sense of continuity in the information and to make it easier to compare the data. Some topics, however, are completely unprecedented because they arise from the economic, political and legal situation in 2023 and have been given specific prominence in this report due to their relevance to the activities of the Casas Bahia Group: Tax Reform, DIFAL (Tax Rate Differential), Transfers of Goods between Establishments of the same taxpayer and the CONFIA Program.

Our Tax Transparency Report is organized on the following fronts:

TAX TRANSPARENCY REPORT

Tax Governance

GLOSSARY7

Principles, Values and Tax Strategy

Through its Tax Governance, the Casas Bahia Group is committed to having a positive impact on the development of society through its activities. Adopting transparency as a perennial and inseparable premise of our culture, on 03/14/2023, we approved our Tax Policy1, which establishes the Principles and Values that guide us in complying with our tax obligations and our relationship with the Tax Authorities (Municipal, State and Federal), both as taxpayers and as those responsible for taxes. Namely:

• Correct calculation and payment of taxes in accordance with the Federal Constitution and other applicable legislation;
• Compliance with deadlines for paying taxes and submitting ancillary obligations to the Tax Authorities;
• Cordiality, ethics and cooperation with the Tax Authorities, in line with the best cooperative compliance practices;
• Transparency in the relationship with the Tax Authorities, clients and suppliers, with the presentation of information that may be of interest to the market, always respecting the confidentiality of information protected by individual rights and guarantees, intellectual property, competition law and the LGPD.

In line with these guidelines, our Tax Strategy involves continuous and careful monitoring of the following factors that guarantee us strict tax compliance:

• We have a technical staff that is qualified and able to comply with tax obligations;
• We believe that the correct payment of taxes presupposes proper calculation and we review our procedures periodically;
• We rely on the advice of independent professionals to interpret the legislation;
• We invest in technology and internal processes to optimize controls and systems in order to increase efficiency in complying with ancillary obligations;
• We believe that taxes are an important part of the business and have an impact on the pricing and profitability of products and services;
• We believe that decisions regarding taxes are not isolated, but are related to business strategies and market positioning (business purpose) and;
• We identify, monitor and review the risks related to the tax area.

In order to achieve these goals, we constantly invest in technology to improve our internal processes, as well as in a qualified technical staff advised by independent professionals to ensure that our tax obligations are always met in an appropriate and timely manner.

In addition, we constantly review our operations in order to adopt the most efficient logistics and cost models, inventory management and our cash flow. This strategy allows us to combine the need to generate good results for our investors with our commitment to implementing the highest levels of tax compliance.

Casas Bahia Group Tax Transparency Report

Tax Risk Management

In order to manage tax risks, the Casas Bahia Group follows the Risk Management Policy2 , which was approved by the Board of Directors on 08/11/2022, and which is available to all our stakeholders on the investor relations page available on our website.

This document defines both the roles (such as the risk owner and the facilitator) and the issues related to the specific levels

In addition, we have adopted the Three-LineModel suggested by the IAA (Institute of Internal Auditors) for communicating and assigning responsibilities in the management of tax risks:

of authority and procedures that must be followed by the company with regard to the identification, treatment, review and monitoring of tax risks.

Composed of the managers and leaders provided for in the procedure related to the risk owner, facilitator, competencies, and levels of authority. They are responsible for:

1. Leading and directing actions so that tax issues are aligned with the Casas Bahia Group's objectives
2. Maintaining continuous dialog with the governance body and reporting results - planned, actual, and expected - linked to the Company's objectives and its risks;
3. Establishing and maintaining appropriate structures and processes for managing tax operations and risks;
4. Ensuring compliance with legal, regulatory, and optical expectations;
5. Ensuring that not only past events are monitored, but also that a forward-looking view is taken to anticipate tax risks.

It refers to the areas that support and monitor the implementation of risk management practices, responsible for:

1. Providing expertise, support, monitoring, and questioning regarding risk management;
2. The development, implementation, and continuous improvement of risk management practices - including internal controls - at the process, systems, and entity levels;
3. Achieving risk management objectives, such as: compliance with laws, regulations and acceptable ethical behavior, internal controls, information and technology security, sustainability and quality assessment;
4. Providing analysis and reports on the adequacy and effectiveness of risk management and internal controls identified in the Casas Bahia Group.

Composed of internal auditors. It refers to independent and objective evaluation and advice on the adequacy and effectiveness of governance and the management of its main risks. Through systematic and detailed processes, it identifies deviations and non-conformities and reports findings to management and governance bodies to promote and facilitate continuous improvement. It may also consider the evaluation of other internal and external providers.

Casas Bahia Group Tax Transparency Report

In addition to its commitment to strict compliance with tax obligations, the Casas Bahia Group actively participates in Associations, Collective Entities and Working Groups aimed at studying matters related to improving the business environment in Brazil and increasing the quality of public policies on tax matters.

It is through these initiatives, which have the significant participation of civil society, that the company gets involved and contributes to various issues, such as those related

to the Reform of Consumption Taxation in Brazil and the implementation of a Tax Compliance Program, CONFIA.

By actively participating in these discussions, the Casas Bahia Group is making a significant contribution to the construction of a new tax environment, in which a cooperative relationship between the tax authorities and taxpayers prevails, with a direct impact on the dynamics of tax assessment, inspection and collection in Brazil.

The Casas Bahia Group participates in the following Associations and Collective Entities that were active in tax matters in 2023:

Brazilian Association of Tax Lawyers

Brazilian Association of Publicly-Held Companies

National Association of Finance Executives. Management and Accounting

Federation of trade in goods, services and tourism in the state of São Paulo

Brazilian Tax Studies Group - GETAP

Institute for Retail Development

GLOSSARY10

Our Operation

The Casas Bahia Group aims to be the relationship and consumption platform for Brazilians wherever, whenever and however they want. In order to fulfill this objective, in addition to our focus and total dedication to the core activity of commercializing products through our physical stores, we also invest in other fronts, especially our omni-channel operations and a wide range of logistics and financial services that feed back into and drive this ecosystem.

We are permanently focused on growing our logistics-as-a-service revenue by reducing the cost of service and increasing the level of service. Comparing the results of 4Q22 with those of 4Q23, our goods delivery times improved by 14% in 1P (own goods) and 5% in 3P (marketplace).

In Fulfillment, the deadline was reduced by 11% in 4Q23 compared to 4Q22, with 35% of orders being delivered within 48 hours (in 4Q22 this percentage was 21%). In addition, clients and revenue in Fulfillment grew by 21% and 61% per annum respectively. These figures confirm that our logistics is at the service of omni-channel, generating value for the client and operating in an open manner with wide geographical coverage.

As for our financial solutions, our main objective is to democratize access to credit by offering these products competitively. Our expertise in the credit granting process is a tool for increasing profitability in the online channel (1P and 3P) and providing shopping opportunities for people who do not have access to credit or card limits. Through the penetration of digital credit, we have already made sales in more than 4,100 municipalities without a physical store, reinforcing that credit on digital channels is a lever for profitable growth for the Casas Bahia Group. In addition, 20% of payment booklet receipts are paid through the banQi application, which is a Casas Bahia digital account that allows people to obtain a personal loan, buy credit for prepaid cards and pay their payment booklet.

Sales in +

4,100

Municipalities without our

physical stores

20%

of payment booklets are

paid through the banQI app,

Casas Bahia's digital

Last but not least, our partners in the marketplace use the strength of our brands and services to sell more and more. In addition, we are constantly concerned with promoting tax citizenship by (i) requiring high compliance standards for the registration and operation of Sellers on our platform and (ii) disseminating material to our marketplace partners to help them understand day-to-day tax issues, which can be accessed at the following link:https://suportemarketplace.viavarejo.com.br/pt-BR/lojista/.