Celebrating 10 Years at BM&FBOVESPA

capital Suppliers G4-10 G4-12 G4-HR11 G4-LA14 G4-LA15 G4-S09 G4-SO10 G4-AF1 • G4-AF2 G4-AF3 G4-AF5 G4-AF6 G4-AF7 G4-AF8 G4-AF15 G4-AF16⚫ G4-AF17 Due to the large size and relevance of Lojas Renner's supply chain, the relationship management with these stakeholders is divided into two areas in order to maintain a high level of assistance and attention to detail regarding the specific characteristics of each group: the Administrative Suppliers Management (GFA) area and Resale Suppliers Management (GFR) area, shown below. In 2015, R$ 3.5 billion was spent with suppliers, divided between: ADMINISTRATIVE SUPPLIERS (logistics, civil construction - architecture and engineering, services, furniture and equipment, buyouts, supplies, IT, miscellaneous) 31% 69% RESALE CIVIL CONSTRUCTION SUPPLIERS Lojas Renner S.A.'s civil construction suppliers are considered a critical point within the administrative suppliers' chain, which is why the Company developed a specific management process to this public in order to ensure compliance with the guidelines of Lojas Renner in its relationship with suppliers. The Civil Construction Suppliers Management process was launched in June 2015 in a workshop involving the chain's main suppliers (Managing Firms, Construction Companies and Architecture Firms), and it runs in line with the Training Program developed by Lojas Renner's Architecture and Engineering Division. - The program provides for the engagement and monitoring of suppliers - based on premises regarding the legislation and best practices in Safety in the Workplace, Environment and Social Responsibility and has a national scope, covering all civil construction suppliers involved in the expansion plan of Renner, Camicado and YouCom stores. The operationalization of inspections and audits are done by specific and specialized companies contracted for this purpose. In 2015, a Women's Inclusion Plan in the Civil Construction Industry was developed, which provides for the development of women's. empowerment initiatives in the Company's expansion construction works planned from 2016. In 2015, 100% of the construction and managing firms that have worked for the Company have Sone through the initial approval process, in line with Lojas Renner's Relationship with Suppliers Policy and Lojas Renner Code of Ethics and Conduct, committing to observe them and comply with them. ADMINISTRATIVE SUPPLIER MANAGEMENT (GFA) The Administrative Suppliers Management area manages companies that provide products and services that are not for the resale in the Company's stores. In 2015, Lojas Renner maintained business relationships with approximately 973 active administrative suppliers, totaling an expense of R$ 1.1 billion in purchase orders. Of this total, 31% is allocated to Civil Construction suppliers who provide remodeling and construction of the Company's new stores services, which have a specific assessment process to mitigate the risks of the chain. SUPPLIERS (clothing, accessories, shoes, beauty, licensed products) RELATIONSHIP CYCLE WITH CIVIL CONSTRUCTION SUPPLIERS SELECTION Auditing actions carried out by specialized contracted firm, through a checklist with criteria established by Lojas Renner, to evaluate the compliance of its suppliers to good corporate practices. ENGAGEMENT AND AWARENESS In-person workshops with civil construction suppliers are carried out to debate on best industry practices, aligned with the Company's Code of Ethics and Conduct, and for the exchange of experiences, which raise awareness in the search for the chain's development, respect for human rights, labor relations and issues relevant to sustainability. DISTRIBUTION OF AUDITS PERFORMED IN 2015 MONITORING AND ASSESSMENT Lojas Renner assesses the administrative suppliers through the Global Supplier Performance Indicator (IDGF) regarding commercial, technical, social and environmental criterion. The assessment process of the civil construction suppliers, structured in 2015, implemented the criteria of compliance to the activities of architecture and engineering. For these suppliers, the criteria of compliance shall be integrated to the IDGF, from 2016, which replaces the social and environmental criteria, expanding the analysis of items with regard to safety in the workplace, environment and social responsibility. The Compliance monitoring process has 3 main stages of auditing: Homologation, Construction Work Sites and Accommodation, which occur periodically, according to the type of project. On average, 2 visits are performed per site, and the most complex projects receive at least 3 visits, that happen at different stages of execution. Based on the assessment obtained in each criteria, the supplier is classified by the general analysis, being considered as Qualified, Partially Qualified or Reproved. DEVELOPMENT AND TRAINING Based on the indicators generated by the monitoring and assessment phase, the critical points will be identified and, in 2016, the items to be developed with suppliers will be defined. 24% Civil construction suppliers' training 6% 5% 8% 22% 5% RENNER Southeast South CAMICADO 70% 60% North Northeast Midwest The Company aims to, in 2016, monitor 100% of the cons- truction work sites, performed in its different stages. YOUCOM G4-LA14 G4-LA15 75

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