Company Presentation 2017 Strategy

1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer

Company Presentation

1

Company Presentation

3 flags

285 stores 28 Jumbo 77 Disco 180 Vea

3 formats

Hypermarkets More than 3.600 m2 Supermarkets between 351 and 3600 m2 Convenience stores Up to 350 m2

Present in 18 provinces Total headcount 18,000 employees

Company Presentation

Buenos Aires’ Logistics

INFLUENCE ZONE

Buenos Aires 3 distribution centers

139 supplied stores 614 employees

Surface 78.500 m² 158.800 daily packages

1.380 Km maximum distance travelled

Company Presentation

Cuyo’s and Noa’s Logistics

INFLUENCE ZONE

CD Mendoza - CUYO

CD Tucumán - NOA

NOA 1 distribution center

39 supplied stores 77 employees

Surface 11.000 m² 25.000 daily packages

501 Km maximum distance travelled

Cuyo 1 distribution center

59 supplied stores 320 employees

Surface 42.100 m² 115.000 daily packages

1.540 Km maximum distance travelled

Strategy 2017

2

Company Presentation 2017 Strategy

1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer

High quality of perishable foods Competitive Advantages

•Homogenous product

•Quality control of raw materials

•Longer shelf life

• Deboning and packaging in our Ezeiza model plant

• Direct purchase of cattle from producers

• To ensure the tracking and quality of our products

• To improve purchasing conditions

• For greater control process

•We buy every day fresh sea food in Mar del Plata city.

•We receive Monday through Friday of the night and early morning is distributed to the stores

•We ensure to sell daily fresh sea food and we make last call sales.

Competitive Advantages Sea Food Commercial Area

High quality of perishable foods

STRATEGY:

To preserve our customers by offering them a unique purchasing experience of fresh products.

To develop a new product line: JUMBO FRESH.

To offer a wide selection of fresh and daily products.

High quality of perishable foods Jumbo Fresh’s Positioning

High quality of perishable foods Jumbo Fresh’s Proposal

“An offer of daily elaborated healthy and delicious foods.”

Jumbo Palermo Plant

Delivery points: 60 stores

Turnover: $ 7.500.000

Users: 17 People

Assortment: 45 products

High quality of perishable foods Jumbo Fresh’s assortment

Sushi

9 selections

Sushi x 10

9 selections

Wraps 3 selections

4 selections Quiches and tarts

Salads

Sandwiches & bagels

High quality of perishable foods Jumbo Fresh’s assortment

Wok

Hot Meals

Lemonades

Veggie burger

Desserts

3 selections

5 selections

3 selections

7 selections

High quality of perishable foods Jumbo Fresh’s displays

Platos Postres y

Limonadas Sándwich Wraps Ensaladas Sushi

172 Employees

It supplies 139 stores

1.000 Tons/month

4.800 Sq mts

Production Plant

High quality of perishable foods

Ituzaingo Plant

Production Plant

High quality of perishable foods

Company Presentation 2017 Strategy

1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer

• Currently, there are forty imported private-label products being registered. These include commodities and products developed by our affilialiated companies in other countries.

Assortment differentiation

Private Label

2013 2014 2015 2016

2,97% 3,01%

3,54%

4,21%

Share Evolution:

Assortment Differentiation Imported Products

Evolution Share and Assortment:

Next product lauchings: 169

Past year Actual Registered/Bought Total

350 568 169 737

2016 E F M A M J J A S(*) JUMBO 1,27% 1,35% 1,52% 1,89% 2,10% 2,50% 2,44% 2,33% 2,36%

2011 2012 2013 2014 2015 2016

1,02% 0,88%

0,69% 0,71% 0,75%

1,98%

Assortment Differentiation Imported Products

Store’s area: LIVE FLAVOURS OF THE WORLD

Special Flyers: LIVE FLAVOURS OF THE WORLD

Company Presentation 2017 Strategy

1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer

FIT Company

Operational Efficiency

14.888 14.790

14.584 14.441

14.258

14.869 14.900

14.589

14.088 13.957 13.986 13.956 13.946

jul-15 ago-15 sep-15 oct-15 nov-15 dic-15 ene-16 feb-16 mar-16 abr-16 may-16 jun-16 jul-16

Average number of employees

-6,3%

FIT Company

Focus on productivity Self Check Out

Palermo Martinez Pilar Escobar Madero Harbour Nordelta Tortuguitas

SCO accomplished in 7 stores

FIT Company

Self scanning 45 stores accomplished

FIT Company

Focus on productivity Self Scan APP Mobile QR

Implemented in 16 Jumbo stores

FIT Company

Focus on productivity Rincon Jumbo and Snack ATM

Self- operated Efficient Reduces delays Programmed menu Integrated with the loyalty program

FIT Company

Focus on productivity Self-service scale

106 stores with self-service scales in vegetables 4 stores with self-service scales in bakery (Jumbo) Provide the bakery solution to all others stores.

FIT Company

Productivity Savings in plastic bags’ costs

Disposable plastic bags are currenttly being charged. Ecological check out points: “Priority for those who bring their own bags”. Area for recycled boxes.

FIT COMPANY

Focus on productivity Closing unprofitable stores

Fecha Bandera Región Local06/01/2016 Vea Buenos Aires Remedios de Escalada28/01/2016 Disco Buenos Aires Las Heras 214/02/2016 Vea Córdoba Pilar01/03/2016 Vea Córdoba Rio Tercero28/03/2016 Disco Buenos Aires Virrey del Pino

During 2016, 5 stores were closed.

Company Presentation 2017 Strategy

1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer

Wholesale Area

1. Monthly validity

2. Changes the brand, not the product

3. Exclusive negotiation

Competitive Pricing

Competitive Pricing

Wholesale Area Expansion

Wholesale Area

Competitive Pricing

Jumbo Family Pack

Competitive Pricing

Family Pack Cordoba

Competitive Pricing

Company Presentation 2017 Strategy

1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer

Purchasing Experience

Rewards Program Discount Program for VEA customers Exclusive prices and daily discounts. Monthly prize-drawn for purchase orders. Installed in 103 stores. More than 1,2 million of fidelized customers. 58 % share of chain total sales

Rewards programs for Jumbo’s and Disco’s customers. Individualized and segmented customers. In-store exchange: the points can be exchanged by any product The purchase can be partially paid with reward points. Exclusive rewards: Gift, trips, purchase orders. Exchangeable for LAN Pass Km. Exclusive benefits with Special Programs. More than 4.1 million of fidelized customers. 70 % share of chain total sales

Special Clubs “Inside and Outside”

Focused on customers adopting healthy and wellness-related practices:

“Inside and Outside”.

Customer profile:

High consumption of healthy, light and personal care products.

Bi-monthly brochure: publishing content, recipes and discount

coupons.

Recruitment:

• Related segments

• Alliances: Gyms, Yoga and Esthetic Centers

116.656 Nbr. Of members

Purchasing Experience

Special Clubs “You and You Baby”

39.444 Nbr. Of members

The arrival of a new baby is one of the most special moments in life. Because of it, we have created “Club For You and Your Baby”, a special initiative that includes a newsletter with interesting notes, tips, and benefits.

Purchasing Experience

Experiencia de Compra

Special Clubs “Deli & Wine”

32.147 Nbr. Of members

For those who like wines, cheeses, and delicatessen, there is “Jumbo Deli and Wine Club”, a different area to enjoy the gourmet world.

Celiac Area

5.913 Nbr. Of members

• Provides information and a useful assortment of products for

those who are gluten intolerant as suggested by the Argentine Celiac Assotiation.

• By offering attractive sales offers, we have become the place

where gluten intolerant people can make an integral purchase.

Purchasing Experience

Campaing “You don’t pay extra for eating healthy”

Campaing

Store

Flyers

Redes

www.alimentaciontemprana.com.ar

GOAL A brand who facilitates and recommends a HEALTHY

NUTRITION. Targets moms with kids up to 12 years old.

Purchasing Experience

Purchasing Experience

Platfor E-Mailing Responsys

Goal: To combine the information obtained from all loyalty programs, and establish a more personalized and segmented communication. This tool will continue to improve as the “Unique Vision” project advances.

Until Today Today with Responsys

We were sending the same 1 HTML without customer segmentation

We multiply the options We are able to make a delivery considering

sex, age, and consumption. Automation

Company Presentation 2017 Strategy

1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer

New formats •Showroom between 200 y 350 sq. mts •High transit locations •ABC 1 segments •Specific proposal, focus on Jumbo Fresh. •High presence of imported products •Home-delivery services Convenience Stores

Convenience Stores Jumbo Arenales

New formats

• Arenales 870 • Opening: March 2016 • Showroom: 268 mts2

Groceries Perishables

• Nbrs. Of Checkouts : 3 • Manage with 1 assistant manager and

11 EQ • Opening hours : Mo to Fri :8:30 a

21hs –Saturdays 9 to 13hs –Sundays y Holidays closed

• Commercial proposal Focused on Groceries and Perishables foods

Convenience Stores Jumbo Arenales

New formats

Convenience Stores Jumbo Arenales

New formats

Company Presentation 2017 Strategy

1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer

Omni-channel

Certain Items

Growth Jumbo JUL 16 Accumulated 114% Last 3 months 163%

The beverages and foods market in e-commerce increased 29% (Accumulated July 2016 – Source: CACE.)

E-commerce Pangui WEB

It takes the special offer of the day

Display of promotional products

Display the discounts on the checkout

Omni-channel

E-commerce In-store tickets

Last 10 on-line invoices

Invoices with more than 20 items

One click to buy

Omni-channel

E-commerce New disco.com.ar

Omni-channel

Launched: May 26th

28% of new customers since we launched

50% growth sales since we launched

E-commerce New vea.com.ar

Omni-channel

Launched: August 26th

Strong focus on interior of the country

Press Release: Mendoza on Sept. 22nd

E-commerce Alliance ICBC

Omni-channel

Alliance since April

30% sales share

Sales +165% last 3 months

Home delivery and Pick-up store

Omni-channel

71% Home Delivery Premium service

8% Home Delivery regular service

21% Pick up store

Omni-channel

APP Jumbo Mas

Funcionalidades

To update data

To consult stores locations

To exchange gifts, trips, prizes, and Latam Mileage.

To generate discount coupons to be used in Jumbo and Disco stores

Total Installed: 1.815 Existing Installed: 588 33%

Total Installed 4.303 Existing Installed 2.300

67%

Target: To develop a tool that allows us to have major interaction with our fidelized customers. Implemented on: July, 2016

What ‘s next ?

Omni-channel

Payment with Visa credit card on-line On-line validation VTex for Jumbo.com Disco Delivery Express Jumbo Drive Thru Vea Kiosks

¡GRACIAS!