ARGENTINA SUPERMARKET. AGENDA

1. MARKET OVERVIEW

2. CUSTOMERS

3. MARKET TRENDS

4. PROFITABLE COMPANY

2

MARKET VISION

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MAIN CHAINS LOSE MARKET SHARE 01

Traditional: Stores with a salesman taking care of what you need. Dominance of non-impulsive categoriesIndependent Self Service : Stores with less than 3 branches. Asian origin stores are included Self Service of Chains:: Store with self-service technology in 3 or more stores.

-2,0 pts.

39% 37%

24% 25%

37% 38%

YTD 2016 YTD 2017

Chains with self-Checkout lanes

Independent Self -Service

Traditionals

Source: Nielsen Retail Index – 84 categoriesNote: Regarding previous reports , Nielsen modified the measuring method for volume by channel and category.

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MARKET SHARE 01

Period : August 2017 - Source: Nielsen

Mts2Venta USD

$ / Mts2

YTD'16 YTD'17 Var Ago'16 Ago'17 Var Ago'17

17,8 17,3 ▼(0,5) 580 589 ▲+9 642.480 $ 382

16,78 16,70 ▼(0,08) 284 283 ▼(1) 519.741 $ 437

12,4 12,5 ▲+0,1 120 122 ▲+2 355.914 $ 484

11,2 11,4 ▲+0,2 107 105 ▼(2) 437.506 $ 368

9,2 9,7 ▲+0,5 796 854 ▲+58 232.822 $ 583

Share T. Nacional Locales T. Nacional

Mts2Venta USD

$ / Mts2

YTD'16 YTD'17 Var Ago'16 Ago'17 Var Ago'17

17,8 17,3 ▼(0,5) 580 589 ▲+9 642.480 $ 382

16,78 16,70 ▼(0,08) 284 283 ▼(1) 519.741 $ 437

12,4 12,5 ▲+0,1 120 122 ▲+2 355.914 $ 484

11,2 11,4 ▲+0,2 107 105 ▼(2) 437.506 $ 368

9,2 9,7 ▲+0,5 796 854 ▲+58 232.822 $ 583

Share T. Nacional Locales T. Nacional

CUSTOMERS

Talent . HHRR

02

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TALENT

Trust Index Great Place to Work Institute:Methodically executed plans and a CulturalChange in Leadership improve results• 2014 59%• 2015 66%• 2016 72%• 2017 75% (*)

Reinforced Leadership:Changes in Executive Roles:• Operations• Commercial• Logistics• Improvements in training methods.

Team reinforcement focused on the deliveryof Extraordinary Results.

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(*) Expected Results to the end of October 17.

CUSTOMERS

Store´s Investment

02

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STORE FORMATS

Assortment proposal based on: • Fresh, cold and hot food• Deli Cold Cuts & Cheeses • Special Breads and sandwiches• Filleted fruits, Yogurts, Dry Fruit Mix• Snacks • Sodas• Wines• Imported beers • Candy (mainly imported products, Ex.:

chocolates)

02

• Surfaces between 200 and 1.500 sqmeters.

• “Convenience”• Staff between 8 up to 20 FTE.• 1 up to 8 check outs.• More than 4 check out, 50% assisted

and 50% Self Check Out.

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JUMBO LAS HERAS OPENING – Buenos Aires City

• Opening August 22nd, 2017• Store #29 of Jumbo Chain• 1090 sq. meter• 22 Employees• 4 Assisted Check Out • 4 Self Check Out

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JUMBO LAS HERAS 02

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VEA VILLA MERCEDES - REMODELING 02

AFTER

BEFORE

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VEA VILLA MERCEDES - REMODELING 02

AFTER

BEFORE

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VEA ORAN. SALTA - REMODELING 02

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VEA ORAN. SALTA - REMODELING 02

AFTER

BEFORE

CUSTOMERS

02

Imported Products

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IMPORTED PRODUCTS

• Strong competitive advantage

• Top quality products

• Overcoming proposal

• Competitors of National Brands

04

CUSTOMERS

Private Labels

02

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PRIVATE LABELS

• Private-Labels growth in developedmarkets.

• Jumbo Retail achieves results above themarket.

• The assortment increases (New RNPA)• Regionals Projects

02

PRIVATE LABELS – Launching

We obtained RNPA from:• Hazelnut paste (Germany)• Olives and capers (Spain )• Corn and Pees (Brazil)• Palms (Bolivia)• Noodles (Italy)

New Regional Projects Cuisine & Co:• Sassy Cookies (Canada)• Cereals (Germany)• Potatoes Chips Tubes (China)• Tuna (Ecuador / Thailand)

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(*) Estimados al cierre 2017

MARKET TRENDS

DIGITAL

TRANSFORMATION

03

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Argentinian e-shopper

Profile

03

141516

48

74687467

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BEAUTY CARE

FOOD, BEVERAGE

AND CLEANING PRODUCTS

KIDSTRAVEL TECHNOLOGY

THEY WOULD BUY

THEY ALREADY BOUGHT

THEY WILL NEVER BUY

US

ER

S %

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Argentinian Market – 1st Semester 03

$59 billionBelong to

21,8 millonPurchase Orders

+20%interannual

We Grew 31% in Purchase Orders & 51% on sales

+30%Interannual

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JRA Nbr.1 in E-Commerce Supermarkets(# Orders – S°1 2017)

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Trend Pitch Ecommerce - Joan Miró - Netquest

#18 Linio.Com.Ar

#19 Dx.Com

#20 G2A.Com

#21 Adidas.Com.Ar

#22 Tematika.Com

#23 Walmart.Com.Ar

#24 Farmacity.Com

#25 Easy.Com.Ar

#10 Amazon.Com

#11 Aliexpress.App

#12 Naturacosmeticos.Com.Ar

#13 Cotodigital3.Com.Ar

#14 Jumbo.Com.Ar

#15 Fravega.Com

#16 Casadellibro.Com

#17 Aliexpress.Com

#1 Mercadolibre.Com.Ar

#2 Mercadolibre.App

#3 Groupon.Com.Ar

#4 Ebay.Com

#5 Dafiti.Com.Ar

#6 Netshoes.Com.Ar

#7 Musimundo.Com

#8 Garbarino.Com

#9 Falabella.Com.Ar

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The 3 consolidate sites (Jumbo, Disco y Vea) overcome to COTO supermarket chain.

MARKET TRENDS

03

OMNI-CHANNEL

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OMNI-CHANNEL 03

•100% : 3 BRANDS MIX

•Orders on Request in 3 Brands

•Sale in Green (Mattresses and Furniture) 1016 Skus

•2018Marketplace

• 2019 Buenos Aires Dark Store

Anything

•5 Different ways of Home Delivery

•Supermarkets (Reduced hours)

•Extended Hours (Daily Delivery )

•Express delivery (2 hours)

•Click and Collect

•Drive-thru

Anytime

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OMNI-CHANNEL 03

• 3 responsive web sites

• Telemarketing

• On line “Customer Care & Sales”

• Vtex Jumbo new site

Anyhow

• 100% National Coverage

• Non-Food delivery to the entire country

• 2018 Third party Pick-upAnywhere

• Promotional activities for both channels

• “Jumbo + y VEA Ahorro” on all channels

• Online Stock and prices All the Time

MARKET TRENDS

SUSTAINABLE

COMPANY

03

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SUSTAINABLE COMPANY 03Goals: Brand positioning To promote HEALTHY EATING ( healthy habits ) Inclusion

Inclusive Instructions

“Mayas Race” • 10.000 runners• Runner t-shirt • Runner Kit • Massive communication• Promotional activities with our

Premium Customers Cardio Point

Live HealthyNational Implementation Plan• Awareness through talks and content

from Celiac Foundation and Argentina Cardiologist Foundation

• Stores Layout

Actions •Alliance between a specialist ONG and HHRR

(Orientation)• Instruction , empathy and Communication of

different types of disabilities through e-learning• Launching in our stores with promotional

activities: December 3rd. (International Day of Persons with disabilities)

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SUSTAINABLE COMPANY

• Improving Early Alimentation• Dr. Cormillot (a renowned physician) talks in

our stores• Blog with content and recipes• Outstanding products in our stores• Schools visit our stores• My Healthy Food: With “Fundación SI” teaches

children to eat healthily throughout thecountry :

- 20 public schools- More than 80 teachers- 2000 pupils and theirs families

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Goals: • Healthy eating habits for children• Building of strong bonds with school,

families and community • Promote healthy habits in the educational

community

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SUSTAINABLE COMPANY

• Development of Healthy Snack• Answer to the needs of Fit generation• TIME factor. Coming on November• Light Snacks (10 assortments)• Nutritional snacks (10 assortments)

• Woman Entrepreneurs• Training to 60 women (October)• Best Project Award (November).

• Macma• Marketing activity for Breast Cancer• Pink Cupcake: the profit of the product is

donated to the foundation. (October)

03

Goals: Positioning the brand regarding women interests

MARKET TRENDS

BUSINESS

INTELIGENCE

03

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REWARDS PROGRAMS 03

Share

Differential Consumption Experience. Engagement

One-to-One contact

Data-driven decision-making

SCORE CARD SAVING CARD

AFFINITY GROUPS 03

INTEREST TARGETING: BROADEN YOUR REACH REACH IS THE TARGET

Moms & Babies Healthy & Beauty Care Deli & Wine Celiac´s Premium Partners

PROFITABLE COMPANY

04

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PROFITABLE COMPANY

We are convinced that the transformationtowards a FIT Company model must bebased on Solid Pillars of EFFICIENCY.Therefore, we focus on the following:

• SERVICE• ENERGY• LOGISTICS• OPERATIONS

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SERVICE EFFICIENCY

84 Stores with Self Check Out30 % Trx Self-Check2018 Plan: 25 Stores

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PROFITABLE COMPANY 04

• 7% Savings in KWh (VS AA)

• New Cold Balconies (36

Stores)

• Automation Cold Food,

Lighting and Air Conditioning

(70 stores)

ENERGETIC EFFICIENCY LOGISTICS EFFICIENCY

ILUSTRATIVO

• CD Ezeiza Sorter (2018)

• WMS Sega in all DC (2017 /

2018)

• #1 Available on-shelving

(GS1 2017)

OPERATIONAL EFFICIENCY

• App Mobile Store Efficiency

(2017)

• Mobile Printer in 100% of the

Stores

• Call Center: Migration to

Peru