Celebrating 10 Years at BM&FBOVESPA

Operating expenses OPERATING EXPENSES 35.4% 35.3% 34.8% 34.1% 33.8% 534 487 436 382 335 2011 2012 2013 Sales Area (thousand m²) Expenses/Net Revenue (%) 2014 2015 MEUCASTO EPPENTO PARA MODE LISAR WAS LOUAS REWERSA ENG MANDO saque rapid Sua tranquilidade está sempre nos nossos planos Tranquilidade também deixa você atraente. seguros meu CARTÃO realze des FINANCORA Operating Expenses grew by 18.4% in 2015, slightly higher than sales growth, representing 34.1% of Net Revenue. As a percentage of Net Revenue, the Operating Expenses represented 34.1%, an increase of 0.3 p.p. over the previous year. Selling expenses accounted for 25.5% of Net Revenue, an increase of 0.3 p.p. compared to the 25.2% in the previous year. General and Administrative Expenses represented 8.6% of Net Revenue, remaining in line with 2014. These variations are mainly due to the rising cost of electricity and to the largest number of new stores. The increase in payroll taxes, from December 2015, also impacted the operating leverage, to a lesser extent. During the year, expenses with the Profit Sharing Program (PPR) totaled R$ 64.3 million and Statutory Participations totaled R$ 9.9 million due to the achievement of the proposed goals. These expenses are recorded in the "Other operating income" line. These results were positively impacted by the amount of R$ 27.3 million, mainly from tax credits reviews throughout 2015. Adjusted EBITDA from retail operations. The combination of revenue growth, higher gross margins and strict control of expenses reflected on the Adjusted EBITDA from Retail Operations increase of 24.3%, with adjusted EBITDA margin of 19.1%, or 1.1 p.p. higher than last year. capital 49 49

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