Pet Retail Market and Valuation Outlook

Appendix 20 93 20: Geospatial Analysis (A) In this context, we created several geospatial analyses to understand various aspects of the pet industry in Brazil. We know that the distribution of stores in the retail segment is essential, especially for a company that seeks to consolidate the sector from a plan to open stores in different cities of the country. That said, we perform our analysis in two main geographic poles: (1) Brazil and (II) São Paulo. (i) Brazil: In the question covering the entire national territory, the first point we sought to understand was the standard of stores Petz seeks to open. In this aspect, we applied a municipal filter, considering 5,567 Brazilian cities. From this, we saw the pattern of stores Petz seeks to extend and compare its penetration level in these cities. The result was apparent. Petz has the vast majority of its stores (125) in cities with over 300k inhabitants, i.e., the central poles of the country. Another fact that corroborates this is the pattern of towns by average income. In the analysis in question, Petz has 118 stores in cities with an average per capita income higher than BRL 1,500. However, despite this appearing to be the company's standard, the penetration level in cities across the country comes to 55% and 64%, respectively. Thus, the company is now looking to open its stores in cities between 100k and 300k inhabitants and average per capita income between BRL 1,000 and 1,500. In addition, we were also able to perform the analysis considering the leading players in the country, such as Cobasi and Petland, as well as more regional players, such as Mundo Pet, Poli Pet, and American Pet. Thus, considering an average radius of influence of 3km per store, we were able to find data such as penetration in the country, the population reached, and most importantly, the GDP per store. Petz' Stores Distribution; [%] 45% 55% With Petz Without Petz 91% 93% 36% 64% > 300k 9% 100k - 300k 7% BRL 1,000 BRL 1,500 > BRL 1,500 Companies Pop. Coverage (mn) GDP Coverage (mn) % of total GDP GDP/Store (mn) Petz 10.4 512,392 27.8% 3439 Cobasi 8.2 441,844 24% 3425 Petland 5.4 287,442 15.6% 3026 AmericanPet 2.2 110,394 6% 2905 Poli-Pet 0.1 4,537 0.2% 378 10 Source: QGIS; IBGE; Companies' Data; Team 7

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