Seale & Associates Creative Solutions. Trusted Advice.

SUPERMARKETS INDUSTRY

Q3 2020 VALUATION UPDATE INTRODUCTION

We are pleased to share our Supermarkets Industry Valuation Update for Q3 2020.

We at Seale & Associates are committed to provide process-driven solutions designed to optimize value and achieve our clients’ strategic objectives on a range of transactions including Mergers, Acquisitions, Divestitures and Carve-Outs, Business Sales, Recapitalizations, and Joint Ventures, among other corporate finance and strategy consulting services.

Over the course of 20 years we have been successfully serving clients all over the world, and we are delighted to provide investment banking advisory services to our Supermarkets clients that are looking to grow through acquisitions or optimize their portfolio through strategic divestitures.

Seale has extensive experience advising companies in retail, including leading wholesalers, retailers, drug stores, and other companies serving this sector. Similarly, Seale has deep expertise in the broader consumer products sectors, having advised leading multinationals, private equity firms and family owned businesses, including:

Team

Sergio García Adan E. Sierra Managing Director Managing Director O: +52 (55) 8000 7463 O: +1 (571) 482-3431 M: +52 (55) 5454 3152 M: +1 (703) 795-4905 [email protected] [email protected]

Sofía Félix Miguel Leal Head of Business Development Business Development O: +52 (55) 8000 7463 O: +52 (55) 8000 7463 M: +52 (55) 3489 1049 M: +52 (55) 4381 1348 [email protected] [email protected]

Washington, D.C. Mexico City  Miami  Monterrey

Supermarkets Industry Seale & Associates Q3 2020 Creative Solutions. Trusted Advice. “Industry valuation multiples have varied significantly due to the recent market dislocation caused by COVID-19’s global pandemic. We present below valuation multiples before the market disruption (February 19, 2020) as well as the latest available as of the publication date of this report”

COMPARABLE PUBLIC COMPANIES – GLOBAL

Annual Average Pre Crisis Third Quarter Market Enterprise Revenue EBITDA EV/EBITDA Feb. 19, 2020 Sep. 30, 2020 Company Country Cap. Value US$MM Margin EV/ EV/ US$MM US$MM 2018 2019 EV/ EBITDA EV/ EBITDA Revenue Revenue

Aeon Co., Ltd. JPN $22,629 $39,879 $79,518 5.8% 8.5x 8.0x 8.5x 0.5x 8.4x 0.5x

Almacenes Éxito S.A. COL $1,302 $2,301 $4,191 6.6% 7.2x 7.4x 3.4x 0.5x 5.9x 0.6x

Carrefour SA FRA $12,968 $31,465 $82,434 4.9% 7.1x 7.3x 7.2x 0.4x 5.9x 0.4x

Dairy Farm Int. Holdings Limited HKG $5,100 $9,488 $10,671 4.4% NR 14.3x 10.4x 1.0x 7.0x 0.9x

Grupo Chedraui, S.A.B. de C.V. MEX $1,045 $2,682 $6,010 5.7% 7.5x 7.9x 8.1x 0.5x 6.5x 0.4x

InRetail Perú Corp. PER $3,435 $5,246 $3,793 10.7% 13.4x 12.5x 11.6x 1.5x 10.6x 1.4x

J Sainsbury plc GBR $5,473 $14,283 $37,760 5.6% 6.9x 6.0x 7.3x 0.4x 5.3x 0.4x

Koninklijke N.V. NLD $31,339 $44,136 $80,010 7.1% 6.5x 7.9x 6.8x 0.6x 6.1x 0.5x

The Co. USA $26,280 $44,086 $128,905 4.9% 7.2x 6.7x 7.2x 0.4x 6.1x 0.3x

Public Joint Stock Company RUS $6,244 $13,095 $20,709 6.7% 6.5x 6.5x 9.4x 0.6x 7.3x 0.7x Magnit

Morrisons GBR $5,282 $8,917 $22,913 5.5% 8.5x 6.9x 6.8x 0.4x 6.8x 0.4x

Organización Soriana, S.A.B. de MEX $1,217 $2,702 $6,811 7.4% 7.2x 6.7x 7.4x 0.6x 5.0x 0.4x C.V.

Shoprite Holdings Limited ZAF $4,529 $5,906 $9,054 6.5% 12.2x 11.0x 9.0x 0.5x 7.5x 0.6x

Sun Art Retail Group Limited HKG $10,524 $9,567 $13,864 8.0% 9.2x 7.6x 10.1x 0.9x 7.4x 0.7x

Wal-Mart de México, S.A.B. de MEX $41,960 $43,299 $29,501 10.2% 15.1x 14.5x 14.2x 1.6x 13.1x 1.4x C.V.

Walmart, Inc. USA $396,470 $455,693 $542,026 6.8% 9.7x 10.9x 11.6x 0.8x 11.4x 0.8x

Woolworths Group Limited AUS $32,852 $44,953 $43,634 6.6% 10.9x 11.9x 14.5x 1.0x 11.6x 1.0x

X5 Retail Group N.V. NLD $10,047 $20,427 $26,042 8.5% 6.9x 7.2x 6.4x 0.8x 6.5x 0.8x

Mean 8.8x 9.0x 8.9x 0.7x 7.7x 0.7x Median 7.5x 7.8x 8.3x 0.6x 6.9x 0.6x

Supermarkets Industry Sources: Capital IQ, Mergermarket Seale & Associates Q3 2020 Creative Solutions. Trusted Advice. SUPERMARKETS –Q3 GLOBAL TRANSACTIONS

Date Target Country Description Seller Buyer Additional Notes

Sep-20 Ukraine UKR Owns and operates supermarkets Counsul Trade House UAB -

Engages in the food retailing Sep-20 Shoprite Holdings Limited ZAF business in South Africa and other - African countries

Solbio (8210985 Canada Owns and operates an organic Sep-20 CAN Solbio (8210985 Canada Inc.) - Inc.)

20 BI-LO Stores of Sep-20 USA Operates BI-LO stores. - Southeastern Grocers, LLC

Operates a grocery store in Aug-20 Loccisano Brothers, Inc. One USA ND - Pennsylvania

Boscaswell Stores in the Aug-20 village of Pendeen in GBR Operates convenience stores ND Wessex Retail Limited - Penzance, Cornwall

Hida-Osaka Buna-shimeji Aug-20 JPN Owns and operates a supermarket Chubu Agent Co.,Ltd. - Co.,Ltd.

Owns and operates a store in Aug-20 Allen's of Hastings, Inc. USA - Nebraska

Acquired a 26.0% stake for US$425.8 million. Jul-20 Shufersal Ltd. ISR Operates a chain of supermarkets EV/EBITDA: 8.8x. EV/Revenue: 0.8x

Operate convenience stores and GPM Investments, LLC/ Arko Jul-20 USA convenience stores with gasoline - Holdings Ltd. (TASE : ARKO) stations

Operates Acquired the remaining 49.9% stake for US$1.7 Jul-20 FamilyMart Co., Ltd. JPN franchises billion. EV/EBITDA: 6.6x. EV/Revenue: 3.4x

Operates various convenience Acquired a 5.0% stake for US$84.8 million. Jul-20 Taiwan FamilyMart Co., Ltd. TWN stores EV/EBITDA: 6.9x. EV/Revenue: 0.8x

ND: Not Disclosed

Supermarkets Industry Sources: Capital IQ, Mergermarket, Seale & Associates Q3 2020 Creative Solutions. Trusted Advice. REPRESENTATIVE GLOBAL ENGAGEMENTS

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GE Power and Systems JBI Holding SAS

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has sold has acquired its sanitaryware business merged its Grupo Galaz, S.A de C.V. has been acquired by beverage division has been acquired by workshop and store in with and has been acquired by Mexico City from to

Washington, D.C. | Miami | Mexico City | Monterrey Contact Information Seale & Associates James A. Seale President Creative Solutions. Trusted Advice. [email protected]

Brett M. Carmel Since 1999, Seale & Associates has been the trusted advisor Senior Managing Director [email protected] to respected public and private companies from around the Felipe Bueno Viesca world. Seale is a global investment bank with extensive Senior Director [email protected] experience in mergers and acquisitions (M&A), corporate Sergio Garcia del Bosque finance advisory, and enterprise level strategy consulting with Managing Director [email protected] a track record of success in a diverse range of industries. Our Adan Sierra experienced team of professionals are committed to serving Managing Director [email protected]

clients with excellence and integrity, while offering innovative Carlos Hernandez Managing Director ideas and solutions to address complex transactions. [email protected]

Alejandro Montemayor ADVISOR TO LEADING COMPANIES WORLDWIDE Senior Associate [email protected]

Armando Rios Associate [email protected]

Aaron Garcia Analyst [email protected]

Sofia Felix Business Development [email protected]

Miguel Leal Business Development [email protected] CONTACT INFORMATION Alejandro Salinas Junior Analyst [email protected]

Andre Leroy Junior Analyst [email protected]

Daniela Aldasoro Junior Analyst [email protected]

Jose Pablo Arronte Headquarters Latin America Office Junior Analyst [email protected] 901 N. Glebe Road Av. Ejército Nacional 769 Suite 500 2nd floor Regina Labardini Arlington, Virginia Mexico City Junior Analyst [email protected] +1 (703) 294 6770 +52 (55) 8000 7463

Please contact us if you would like further information about M&A trends and/or specific transaction multiples for your industry Washington, D.C. | Miami | Mexico City | Monterrey www.sealeassociates.com