A Lojas Renner S

ANNUAL GENERAL MEETING

Management Proposal

Manual for participation in Shareholder’s Meeting

April 29, 2021 TABLE OF CONTENTS

Message from the Chairman of the Board of Directors ...... 03 Message from the Chief Executive Officer ...... 04 Invitation ...... 05

Procedures and Terms……...... 06

Matters to be resolved in Annual General Meeting: 1) Examine, discuss and vote on the management statements and financial statements for the fiscal year ending December 31 2020 Management Statements ...... 09 Financial Statements ...... 09 2) Examine, discuss and vote the proposal for the allocation of net income for the fiscal year and the distribution of dividends Allocation of net income ...... 10 Distribution of dividends ...... 10

3) Establish the number of members of the Board of Directors…...... 10 4) Elect the members of the Board of Directors ...... 10 5) Establish the amount of compensation of the members of Management...... 14

6) Establish the number of members of the Fiscal Council……...... 15 7) Elect the members of the Fiscal Council...... 15 8) Establish the amount of compensation of the members of the Fiscal Council...... 16

Attachments I. Management Report and Analysis ...... 18

II. Management’s Comments on the Corporation’s Financial Condition ...... 37 III. Financial Statements and Explanatory Notes ...... 75

IV. Independent Auditors’ Report ...... 147 V. Report and Opinion of the Audit Risk Management Committee and Fiscal Council ...... 151

VI. Capital Budget Proposal and Officers’ Representations ...... 155 VII. Proposal for Application of Net Profit ...... 158 VIII. Information on the Candidates Appointed by Management ...... 161 IX. Additional Information on Management Compensation ...... 169 X. Call Notice...... 198

2 MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS

Dear Shareholders,

We invite you to take part in the exclusively digital Annual General Meeting (“AGM”), convened for April 29, 2020 at 1:00 p.m.. In 2005, Lojas Renner S.A. became the first company in Brazil to have 100% of its shares traded on the Brazilian stock exchange, its capital totally dispersed. It was for this reason that it has been necessary over the course of the years to develop innovative mechanisms for the organization and execution of corporate actions, such as the pioneering adoption of the Manual for Participation in Shareholders’ Meetings, similar to the “proxy statements” of foreign companies, and the use of the public request for a power of attorney mechanism. In addition, over time, the Company has sought the participation of its shareholders in the meetings, enabling them to choose the most convenient form of participation, be it personally, by remote voting, by representation or by the public request for a power of attorney made by the Company.

In the current scenario of still great uncertainty due to Covid-19 and to preserve the health of its shareholders and employees, the Company has decided to conduct the AGM 2021 exclusively on a digital basis using an electronic remote participation system or through the Distance Voting Ballot, as shown in this Manual. The Company has a Corporate Governance Secretary who supports activities related to the functioning of governance, to the attendance and interaction with shareholders and voting agencies, including questions related to the meetings, and who should be contacted for clarification on the ways of taking part in our AGM.

The year 2020 was marked not only by the pandemic and by the intense and unpredictable days we lived through, but also by the complete transformation and evolution we have seen in our businesses. It was a challenging year, where more than ever, it was necessary to reinvent ourselves in many ways since in March, we had to take the difficult decision to temporarily close all our physical stores and, as we always do, putting people front and center of our decisions, opting for the preservation of health and lives. We worked arduously to do something we could never have imagined with the gradual reopening of the stores until the network was fully up and running, this occurring only at the end of August, albeit still with some restrictions on operations. In this way, we maintained the business, employment, and the activation of the businesses as much as possible.

In governance, in 2020, we commemorated the 15th year as a widely held corporation and a listing on the B3’s Novo Mercado, a fact of which we are immensely proud. Additionally, we signed an agreement with Women on Board (WOB) in which we have committed to maintain, at least, two women on the Board of Directors. We adhered to the best national and international practices for the efficient management of the risks of the business, reinforcing the culture of ethics, transparency, and responsible governance with a robust management structure, through policies and processes. Also during the year, we concluded the project for making the adjustments to the requirements of the new General Data Protection Law, an important event for guaranteeing the use of data in a secure and responsible way.

Thus, we arrived at the end of 2020, a challenging year, but one full of opportunities. Consequently, we look forward to your presence at our AGM and through the Corporate Governance Secretary, we are available to provide any clarifications which may be necessary. Our meetings have always enjoyed the active participation of the shareholders and for this reason your vote is extremely important.

Regards,

José Galló Chairman of the Board of Directors

3 MESSAGE FROM THE CEO

Dear Shareholders, Definitely, 2020 will go down as a challenging year, one in which we had to face never foreseen situations with the temporary closing of all the physical stores between March and August, the subsequent organization of the business environment and the planning of our actions for resuming normal activities. The reopening of the stores took place very gradually, the store network only being fully up and running at the end of August, albeit with some restrictions on operations. Indeed, the situation proved to be still more challenging than first imagined, but in spite of all, we persisted and accelerated our transformational initiatives, bringing more and better products and services to market. In parallel, we continued to pursue the organization of the operations at the distribution centers and the call centers allowing us to proceed apace on our journey with safety for our customers and teams, respecting one of our core values: PEOPLE.

In addition, we evolved much in the way we work and view things, in the roles we play and in the solutions proposed. We act with determination, transforming the Company in the quest for productivity and velocity in generating greater degrees of enchantment to our omni customers and consequently, with greater engagement, frequency, and repeat purchases. We continue our journey having seen an enormous advance in online activities, which today have risen to new heights of growth and relevance as part of the overall business. Our digital channels already represent more than 12% of total sales with a growth of 126.0% in 2020. We know that all the steps implemented so far can be expected to bring with them innumerous new opportunities. All this with strong activity based on three important pillars: innovation, digitalization, and sustainability.

Without a doubt, a year of challenges but also one of beating the odds. In 2020, we reported R$ 7.5 billion in Total Net Revenue and our Net Debt was R$ 712 million, equivalent to 0.6x Total Adjusted EBITDA. We also invested R$ 544.0 million in expansion and digitalization of the Company while our market cap stood at R$ 34.5 billion as at December 31, 2020. Again, our Net Income totaled R$ 1.1 billion and 25% was approved for distribution as payout to the shareholders.

On ESG (Environmental, Social and Governance) we also saw progress. In addition to measures for supporting and collaborating with the community during the pandemic, in 2021, we advanced in actions for achieving our public commitments in sustainability and continue to be a component in portfolios of important indices on the theme, such as the ISE, IGC and the ICO2, not to mention the DJSI World, the MSCI Brazil ESG Leaders and the CDP Climate Change. We have also been included in the new S&P B3 ESG index, being placed first in the list of 10 qualifying companies.

So, we conclude our journey through 2020, a year which raised three clear opportunities: the first relating to new behavior on the part of consumers, allowing us to increase the number of omni customers and leverage the integration of the on- and off-line channels. The second relates to the readjusting of the fashion and lifestyle sector following a difficult year, in which it is apparent that there will only be potential for those organizations with clear competitive advantages to increase their market share. And thirdly, the opportunity relating to commercial relations which strengthened during the course of the year, thanks to the way we handle our relationship with our major partners, our suppliers.

In 2021, much uncertainty still lies ahead as to the economic and health-related scenarios, although we know that now we are more prepared and very alert to the opportunities that may arise. We are already the largest omni fashion retailer in Brazil, and we shall continue to expand the store network and at the same time, the online operation – with enchantment! Our main objective is to continue accelerating the integration of the physical stores and e-commerce channels, combining the retail operation and Realize, based on a fashion and lifestyle ecosystem, this forming the foundation for all the businesses in innovation, digitalization, and sustainability. In this way we shall achieve our four first public commitments in ESG as well as launching new challenges in this respect.

Now that we are preparing for our 2021 AGM, I would like to remind shareholders of the importance of their participation in the Meeting. To protect the health of its shareholders and employees, the Company is holding an exclusively digital AGM 2021 through the electronic remote participation system or using the Distance Voting Ballot, the instructions for which can be found in this Manual. To help participants in their analysis and appreciation of the matters to be debated, we are including the documents relative to each item on the days agenda in the form of attachments to this Manual together with the methods of voting and the list of the documents required for each matter.

We are exerting our best efforts for the AGM to be installed at the first call and for this your participation is most important as well as your in-depth analysis of the documentation of each one of the materials of these meetings prior to voting.

We provide the e-mail [email protected] to access the Company’s Corporate Governance Secretary, who is available to clarify any doubts in relation to the meetings.

Regards,

Fabio Adegas Faccio Chief Executive Officer

4 INVITATION

DATE: April 29, 2021 TIME: 1:00 p.m. ADDRESS: Corporation’s Headquarters - exclusively in digital format, through the virtual meetings platform ALFM Easy Voting

AGENDA:

I) Annual General Meeting 1. Examine, discuss and vote on the management statements and financial statements for the fiscal year ending December 31, 2020; 2. Examine, discuss and vote the proposal for the allocation of net income for the fiscal year and the distribution of dividends; 3. Establish the number of members of the Board of Directors 4. Elect the members of the Board of Directors 5. Establish the amount of compensation of the members of Management 6. Establish the number of members of the Fiscal Council 7. Elect the members of the Fiscal Council 8. Establish the amount of compensation of the members of the Fiscal Council

With a view to preserving the health of its shareholders and employees, the Company wishes to inform that it has decided to hold the AGM 2021 on an exclusively digital basis using the electronic remote participation system, the ALFM Easy Voting platform or the Distance Voting Ballot.

We also inform that the quorum for the installation of the AGM requires the presence of shareholders (or their representatives) holding shares that represent at least 1/4 (a quarter) of the shares that make up the share capital of Company. In case such quorum is not reached, the Company will define a new date for the installation of the General Meeting on second call. That being the case, the meeting may be installed with the presence of any number of shareholders.

5 PROCEDURES AND TERMS

To take part in the Annual General Meeting called for 1:00 p.m. on April 29, 2021, the Company’s Shareholders may choose one of two options at their disposal: (i) by Remote Voting, or (ii) electronic platform.

(i) REMOTE VOTING Pursuant to Article 21-A and subsequent articles to ICVM As determined under ICVM 481/09, on receiving voting 481/09, the Company’s shareholders may also exercise instructions from the Shareholders through the latter’s voting rights in General Meetings through a remote voting respective custodians, B3’s Central Depositary shall process, to be formalized in an electronic document known disregard eventual diverging instructions in relation to the as a “Distance Voting Ballot” (Voting Ballot), the model for same voting decision issued by the same tax registration which is shown in to be found in the website of the number whether of a natural person or legal entity. Company www.lojasrenner.com.br/ri, in the CVM Documents - Meetings and Minutes – Annual General Through the Company’s Bank for Securities’ Registration Meeting 2021. Remote voting using the Voting Ballot may be This option is exclusively for the holders of shares deposited in three formats: with Banco Itaú S.A., the securities’ registrar for the Company. Itaú has set up a Digital Meeting website, a Directly to the Company secure solution where it is possible to execute remote The Shareholder that chooses to send the Voting Ballot to voting. In order to vote via the website, the shareholder the Company, shall print, complete, initial, sign and mail must register and have a digital certificate. Information on (Av. Joaquim Porto Villanova, 401, Torre Sul, 7º andar, Bairro registering and the step-by-step process for issuing the Jardim do Salso, Porto Alegre, RS, Cep.91410-400) or forward digital certificate are described in the site: it electronically ([email protected]) to Lojas https://assembleiadigital.certificadodigital.com/itausecuriti Renner S.A., care of the Investor Relations Officer, Alvaro esservices/artigo/home/assembleia-digital. Jorge Fontes de Azevedo. Other information on Remote Voting Pursuant to Article 21-B of ICVM 481/09, the Voting Ballot With the exception under ICVM 481/09, should there be a shall be received in up to 7 (seven) days prior to the divergence between the eventual Voting Ballot received meeting. Voting Ballot received after the stipulated date directly by the Company and the voting instruction shall not be accepted by the Company. Pursuant to Article included in the consolidated voting map sent by the central 21-U, the Company shall notify the Shareholder in up to 3 depositary with respect to the same number enrolled in the (three) days from receipt of the Voting List if the documents tax register, whether that of a natural person or corporate received are sufficient or otherwise for the vote to be entity, the voting instruction in the voting map shall take deemed valid. Certification, notarization or consularization precedence, the Voting Ballot received directly by the of the signature shall not be required. Company to be disregarded.

In addition to the Voting Ballot, the Shareholder shall submit During the period for voting, the shareholder may change the following certified documents (certification is waived for voting instructions as many times as understood to be those documents in the website of the CVM): Natural Person necessary, the last voting instruction presented being - ID with a photograph of the shareholder or their legal considered in the Company’s voting map as valid. Once representative, being: Brazilian national’s ID, Foreign the period for casting votes has elapsed, the shareholder Resident’s ID, Brazilian driving licenses, passport or class may not alter voting instructions already sent. Should the association ID. Legal Entity (PJ) and Investment Funds (FI) - shareholder deem that the alteration should be necessary, a) ID with a photograph of the shareholder or their legal they should participate personally in the Meeting, bearing representative, being: Brazilian national’s ID, foreign the documents required by the Company for onsite resident’s ID, Brazilian driving licenses, passport or class participation, requesting that their voting instructions sent association ID; b) Articles of Association or consolidated and via Voting Ballot being disregarded. current Corporate Bylaws (in the case of a PJ), or the consolidated and current fund regulations (in the case of a Shareholders with shares held in custody with more than FI); and c) a document substantiating powers of one institution (for example: part of the position is on the representation. books of a bank securities’ registrar and the other part with a custodian, or shares are held in custody with more than Through a Custodian one custodian): just send the voting instructions of one The shareholder that chooses to exercise their remote voting institution only - the vote will always take into account the rights through a service provider’s intermediary shall transmit aggregate number of shares held by the Shareholder. their voting instructions to their respective custodian, pursuant to the latter’s rules, the custodian forwarding these The Company will not provide a proprietary electronic voting declarations to B3’s Central Depositary. To this end, system for sending the Voting Ballot or remote participation shareholders shall contact their custodians and verify during the Meeting. procedures established for the issue of the latter’s instructions for voting via Voting Ballot as well as the documents and information required by them to this end.

Pursuant to Article 21-B of ICVM 481/09, the shareholder shall transmit instructions for completion of the Voting List to their custodians up to 7 (seven) days prior to the holding of the Meeting, unless a different timeframe is set by their custodians. 6 PROCEDURES AND TERMS

(ii) ONLINE PARTICIPATION

The Company, in order to facilitate the participation of shareholders in the AGM, makes available a virtual platform, where shareholders can participate and vote in a virtual manner, according to CVM Instruction 481/09.

Shareholders by themselves, by attorneys-in-fact or legal representatives, wishing to participate remotely through the virtual meetings platform ALFM Easy Voting (“Platform”) should access the pre-registration link (https://plataforma.alfm.adv.br/ALFM/acionista.wpconsentimento.aspx?CtxW0jdnQS4JAgUx1hIBxa4PbZ2fb5QK1fz6/Hx8u 7uQ1tFsJtsxF+XTqxyZNf2p) at the latest by April 27, 2021 (inclusive), completing all information requested and realizing the upload of the documents which substantiate their qualification.

Before beginning registration, the shareholder must agree to the collection of their personal data pursuant to the terms of the GDPL, thus permitting the respective accreditation for participation in the Meeting. Following consent of the collection of data, the shareholder, their attorneys-in-fact, or legal representative should include the following information: (i) natural persons tax register enrollment number (CPF); (ii) name; (iii) mobile telephone number for contacts; and (iv) e-mail.

In order to complete the registration, shareholders must upload the following documentation as the case may be: (i) natural persons: identity document of the Shareholder with photograph; (ii) legal entities: copy of the current consolidated corporate bylaws or articles of association and documents of representation (minutes of election and/or power of attorney), as well as identity document with a photograph of the legal representative; and (iii) investment funds: copy of the current consolidated regulations of the fund together with the corporate bylaws or articles of association of its manager and documents of representation (minutes of election and/or power of attorney), as well as identity documentation with a photograph of the legal representative.

For those shareholders represented by power of attorney, the latter should have been granted at least 1 (one) year previously, pursuant to Article 126, Paragraph 1 of Law 6.404/1976.

Further, to complete the registration, a full face photograph of the shareholders, proxies or legal representatives must be taken.

Once registration is completed, the Company will validate the information provided and the shareholders, attorneys-in- fact or legal representatives will receive within 24 hours, an e-mail informing the approval or rejection of the registration. The shareholder may regularize their pending registration details up to 24 hours prior to the Meeting.

Registration received during weekends will be validated by 6:00 p.m. on the following Monday.

Within the 24 (twenty-four) hour period immediately prior to the beginning of the Meeting, the Company will send to the duly authorized shareholders, attorneys-in-fact and legal representatives an e-mail with the link, login, and password for access (“Access Link”) to the Platform together with other necessary instructions for access to, and participation in the Meeting. The Company hereby informs, that the information on access is personal and not transferable and may not be shared, the shareholder being held liable should they do so.

For those using a personal computer, please find a table below with recommendations for use of the Platform:

Edge Chrome Firefox Safari Edge IE>=11 Opera Vivaldi (Chro mium) Video Yes Yes Yes No No Yes Yes Yes Computer Only Yes No No No No Yes Yes Audio Linux View Sharing Yes Yes Yes No Yes Yes Yes Yes Screen >=72 >=66 No No No No Yes Yes Sharing Chat Yes Yes Yes No Yes Yes Yes Yes

Please note that the use of the Platform is not compatible with tablets and smart phones.

The Company accepts no liability for any operational problem or connection that the shareholder or attorney-in-fact may experience that renders participation in the Meeting difficult or impossible.

The Company informs also that the Meeting will be recorded in full pursuant to the terms of the current regulations.

The shareholder participating through the intermediary of the Platform will be considered present at the Meeting and signatory of the respective minutes pursuant to the first paragraph of Article 21-V of CVM Instruction 481/2009.

7 MATTERS TO BE RESOLVED In the Annual General Meeting

Pursuant to article 132 of the Law 6,404/76 (“Corporations Law” and article 10 of its Bylaws, the Company shall carry out an AGM once a year, within the four (4) months immediately subsequent to the ending of the fiscal year.

As per such provision of the Corporations Law, is of exclusive competence of the Annual General Meeting to resolve about the following matters contained in the agenda, which shall henceforth be emphasized and commented on:

•examine, discuss and vote on the Management accounts and financial statements for the fiscal year ending December 31 2020;

•examine, discuss and vote the proposal for the allocation of net income for the fiscal year and the distribution of dividends;

•establish the number of members of the Board of Directors; •elect the members of the Board of Directors; •establish the amount of compensation of the members of Management; •establish the number of members of the Fiscal Council; •elect the members of the Fiscal Council; and •establish the amount of compensation of the members of the Fiscal Council.

You will find below explanations provided by the Corporation’s management with respect to each one of the matters to be resolved in the Annual General Meeting.

Lojas Renner S.A. administrative headquarters in Porto Alegre.

8 MATTERS TO BE RESOLVED

1. EXAMINE, DISCUSS AND VOTE ON THE MANAGEMENT STATEMENTS AND FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDING DECEMBER 31 2020.

A) MANAGEMENT STATEMENT (B) FINANCIAL STATEMENTS

The documents provided by the Corporation’s The financial statements express the Corporation’s management are: financial and economic condition and the equity (i)Management report concerning the business statistics variation occurred within the fiscal year. Through the and the management analyses and discussions with analysis of the financial statements, it is possible to respect to the main accounts of the Income Statement evaluate the equity situation, the liquidity rates, the for the fiscal year (Attachment I hereto); profit level and the Corporation’s indebtedness level. (ii)Management’s comments on the Corporation’s financial condition (Attachment II hereto); The financial statements have as effective date (iii)Financial statements and the respective explanatory December 31, 2020 and refer to the fiscal year ended notes (Attachment III hereto); on the same date and are composed of six (iv)Independent auditors’ report (Attachment IV hereto); documents: (i) Balance sheet; (ii) Income statement for (v) Report and Opinion of the Audit Risk Management the fiscal year; (iii) Statements of Changes in Equity - Committee and Fiscal Council (Attachment V hereto); Parent Company and Consolidated; (iv) Statements of and Cash Flows; (v) Statements of Comprehensive Income; (vi)Capital budget proposal and representations of the and (vi) Statement of Value Added. Corporation’s officers pursuant to Article 25, §1, items V and VI of Rule 480 (Attachment VI hereto). The Explanatory Notes are presented together with the financial statements, with the purpose of The management documents mentioned above are an supplementing such financial statements, as well as to integral part hereof. Furthermore, such documents are assist in their analysis and comprehension. The separately available in the website of Securities shareholders shall duly exam the explanatory notes Exchange Commission (CVM – Comissão de Valores related to the Corporation’s financial statements with Mobiliários) (www.cvm.gov.br) or in the Corporation’s the purpose to evaluate and approve (or not) such website (www.lojasrenner.com.br/ri). financial statements.

The Management accounts are presented together with The Corporation’s financial statements have been the management report and the financial statements audited by Ernst & Young Auditores Independentes prepared by the Corporation’s Board of Executive S.S.. The auditors issued a report without caveats, Officers. Prior to disclosure to and approval by the pursuant to the full content of the opinion set forth in shareholders, the accounts shall be previously approved Attachment IV hereto. Renner's policy for its by the Board of Directors. After issuance of opinion by independent auditors with respect to the provision of the Fiscal Council, the accounts are then submitted to services not related to the external audit, rests on the AGM. The approval by the Board of Directors was principles that preserve the auditor’s independence. obtained during the meeting of the board of directors These principles are based on the fact that auditors held on February 11, 2021. On the same date, the Fiscal should not audit their own work, perform management Council issued its Opinion. functions or represent their client. During the fiscal year ending December 31, 2020, the Company’s The Management Report contains financial and non independent auditors, Ernst & Young Auditores financial information, in addition to statistic and business Independentes S.S., were responsible for examining the information with respect to the analysis and discussions financial statements and preparing the assurance of the main accounts of the income statement for the report to the Company’s Annual Report. Furthermore, fiscal year, as well as information related to employees, the amount of fees payable to the independent ESG – enviromental, social and corporate governance, auditors in the fiscal year 2020 was R$ 1,327.9 thousand, capital market, among others. of which R$ 276 thousand relates to support services in the regularization of constructions, in the process of The Corporation recommends to its shareholders to duly opening new stores, approval of suppliers and advice exam the documents provided by the management of on foreign trade. the Corporation, in order to resolve about the Management accounts. The Corporation recommends to its shareholders to duly exam the documentation provided by the Management in order to resolve about the Corporation’s financial statements.

9 MATTERS TO BE RESOLVED

2) EXAMINE, DISCUSS AND VOTE THE PROPOSAL FOR THE ALLOCATION OF NET INCOME FOR THE FISCAL YEAR AND THE DISTRIBUTION OF DIVIDENDS

(A) ALLOCATION OF NET INCOME The Corporation understands that the proposal for application of net profits above was formulated in The Corporation’s management shall submit the accordance with legal and statutory obligations of the proposal for application of net profit of the fiscal year, Company. The present proposal matches the expansion pursuant to Annex 9-1-II to Rule 481. Such proposal is project of the business activities of the Company. included in Attachment VII hereto. We recommend the careful reading of such Attachment after the 3) ESTABLISH THE NUMBER OF MEMBERS OF THE BOARD OF reading hereof. DIRECTORS

The Corporation’s net profit for the fiscal year totalizes Pursuant to Paragraph 3, Article 16 of the Company’s the amount of R$ 1,096.3 million. Net profit corresponds Bylaws, the shareholders shall decide at the Annual to the positive results of the fiscal year, after deduction General Meeting the effective number of members to of the provision for the income tax and the statutory sit on the Board of Directors. According to the profit sharing assignments. The Management of the Company’s Bylaws, the Board of Directors shall be Company proposes the following application of net composed by, minimum five (05) to maximum nine (09) profit for the fiscal year: Dividends in the amount of R$ members. 271.5 million, representing 25% of the net profit for the fiscal year, Legal Reserve in the amount of R$ 54.8 Management proposes that 8 (eight) members sit on million, representing 5% of the net profit for the fiscal the Board of Directors. year, Reserve for Investments and Expansion in the amount of R$ 704.7 million, representing 64.2% of the The Company believes that the proposal to maintain net profit for the fiscal year, Tax Incentive Reserve in the existing number of members on the Board of the amount of R$ 65.3 million, representing 5.8% of the Directors is in accordance with the principles of net profit for the fiscal year, according to article 195-A corporate governance currently being followed. of Law 6,404/76. The proposal was adopted in the light of the Company’s sustained growth policy, investments 4) ELECT THE MEMBERS OF THE BOARD OF DIRECTORS in new stores, in structure and the logistics process. The election of the members of the Company’s Board The Company understands that the proposal for of Directors may take place through 2 (two) voting application of net profits above was formulated in systems which are: (i) via an individual voting process accordance with legal and statutory obligations of the (“Individual Voting”); or (ii) through a multiple voting Company, strictly pursuing its corporate purpose. process (“Multiple Voting Process”).

As is already known, the current members of the Board (B) DISTRIBUTION OF DIVIDENDS of Directors shall be considered automatically nominated for reelection via a joint proposal of the Pursuant to Attachment VII hereto, the Management members of the Board of Directors. Thus, the names of the Company, in the light of the economic impacts indicated by the Company are José Galló, Osvaldo of the pandemic caused by the Covid-19 virus, Burgos Schirmer, Carlos Fernando Couto de Oliveira proposes to distribute the amount of R$ 271.7 million, Souto, Fábio de Barros Pinheiro, Thomas Bier Herrmann, which corresponds to tenty-five per cent (25%) of Juliana Rozenbaum Munemori, Christiane Almeida Corporation’s adjusted annual net profit and dividends Edington and Alexandre Vartuli Gouvea, all adherent to prescribed in 2020, to be distributed among the the Policy for Indication of Members of the Board of Shareholders of the Corporation based on their Lojas Renner S.A.. respective participations. The multiple voting process is a procedure whereby Pursuant to Section 34 of the Bylaws, the interest over each share is attributed so many votes as there are own capital in the amount of R$ 240.8 million, as vacancies to be filled on the Board of Directors, the declared in the Board of Directors’ Meetings held on shareholder’s right to accumulate votes for one March 16, June 18, September 17 and December 15, candidate only or distribute them among various 2020, have been attributed to the compulsory dividend candidates being recognized. Shareholders of the proposed by the Management, and for such reason, Company, representing at least 5% (five percent) of the the amount to be paid as a dividend, after the AGM, capital stock, may request to the Company in writing shall be R$ 30.9 million, corresponding to R$ 0.038940 the adoption of the multiple voting process up to 48 per share. (forty-eight) hours prior to the holding of the AGM pursuant to Law 6.404/76. In February 08, 2020 238,260 shares were transferred in the light of the Company’s Restricted Shares Program. Therefore the number of shares considered for the calculation of the dividends per share changed from 793,011,525 as of December 31st, 2020 to 793,249,785.

10 MATTERS TO BE RESOLVED

4) ELECT THE MEMBERS OF THE BOARD OF DIRECTORS Should the multiple voting process not have been Overall according to evaluation results, the Company’s requested, the members of the Board of Directors may Board of Directors is viewed as highly effective in fulfilling decide by an absolute majority of those present to propose its role, showing itself to be effective in several dimensions the name of substitute candidates to replace any current and revealing an evolution in relation to last year, albeit Director not standing for reelection should such a with opportunities for improvement, with a view to a nomination be necessary to make up the total number of composition with greater diversity in the light of sector candidates for the seats on the Board, pursuant to the challenges. The Board has aligned and structured rituals of provision in Article 16 of the Company’s Corporate Bylaws. governance making for productive and efficient Should the multiple voting process have been requested, discussions and its members are engaged and each current member of the Board of Directors shall be contributive on the basis of their adequate experiences. considered a candidate for reelection to the Board of The evaluation reports the committees as effective in Directors. fulfilling their roles with an adequate structure, composition, and prepositive of themes for supporting The Board of Directors has the support of four committees: Board discussion, showing in some cases, opportunities for the Human Resources Committee, set up on June 08, 2005 improvement through a more strategic and prepositive as the Compensation Committee; the Sustainability approach with greater in depth reports to the Board. Committee established on March 31, 2008; the Audit and Risk Management Committee on April 20, 2015 and with Finally, the general evaluation of the Company’s Board of statutory status since March 09, 2018, and the Strategic Directors and committees for 2020, reported an evolution Committee on April 17, 2014. Both the Board of Directors as in relation to 2019 with a score of 4.8 against 4.6 in 2019. well as the Committees have Internal Charters which However, despite a very effective performance, the regulate their respective activities. results of the evaluation identified opportunities for improvement together recommending action plans to be Since 2009, the Board of Directors of Lojas Renner S.A. drawn up for the continual upgrading of the Body, always (“Company”) has been subject to a formal evaluation of its in line with good practices of corporate governance. performance pursuant to the good practices of corporate governance and with a view to the continuous In 2020, Lojas Renner’s Board of Directors met 22 times, improvement of the Organ. In 2020, the Board of Directors closely monitoring the Company’s management and was again evaluated with the support of an outside businesses, with the average participation of 99.4%. At the specialist consultancy, the latter with solid knowhow and end of its onsite meetings and as a practice, the Board of experience in evaluations of boards of major companies. Directors holds a “Non-Executive Session”, without The process through which the directors evaluate the Company executives. Of the eight members of the Board, functioning of the Board and committees as well as the only one Director was a statutory officer of the Company. Office of the Chairman of the Board, consists of 4 (four) Thus, all current members are external and seven are phases: (i) definition and preparation – alignment with the independent, thus fostering a plurality of opinions for Chairman of the Board and the People Committee in establishing business strategies and guaranteeing the respect to an online evaluation questionnaire; (ii) individual independence of executive activities. meetings – individual interviews by the Consultancy with all the Directors and the Chairman of the Board; (iii) The Directors Osvaldo Burgos Schirmer, Carlos Fernando consolidation of information and internal analysis – Couto de Oliveira Souto, Fábio de Barros Pinheiro, Thomas consolidation by the consultancy of the results of the Bier Herrmann, Juliana Rozenbaum Munemori, Christiane questionnaire and inputs obtained during the interviews; Almeida Edington and Alexandre Vartuli Gouvea have and (iv) presentation of the results – prior presentation by declared themselves independent in a document the consultancy of the evaluation to the Chairman of the delivered to the Company in accordance with the criteria Board and subsequently, to all the members of the Board of of independence ordained in the B3 S.A. – Brasil, Bolsa, Directors, for discussion of the results and definition of the Balcão’s Novo Mercado’s Listing Regulations. Accordingly, plans for improvement to be implemented. The evaluation the Board of Directors has 88% independent members for 2020 was conducted using the questionnaires previously and 25% are women. completed by the Directors and subsequently discussed in an onsite interview. The questionnaire was divided into: (i) The Board of Directors of Lojas Renner S.A. declares itself functioning of the Board of Directors, including composition; favorable to the qualification of each of the members of structure and organization; communication and flow of the Board of Directors mentioned above under the criteria information with the CEO and Board of Executive Officers; of independence incorporated in the Novo Mercado strategy, results, and risk management; succession and Listing Regulations. development; and committees; (ii) effectiveness of the committees; and (iii) evaluation of the Chairman of the The document containing information under items 12.5 to Board. The information in the questionnaires and interviews 12.10 of the Reference Form attached to ICVM 480/09 for held within the scope of the evaluation is always each one of the nominated members of the Board of confidential. The outside consultancy presents consolidated Directors is included in this Manual under Attachment VIII. quantitative and qualitative results and analysis and bases its evaluation on a scale from 1 to 6 and on the criteria: little effectiveness (1-2), effective (3-4) and exceptional (5-6).

11 MATTERS TO BE RESOLVED

4) ELECT THE MEMBERS OF THE BOARD OF DIRECTORS

José Galló. Chairman of Lojas Renner’s Board of Directors since April 18,2019. He has served as a member of the Board of Directors of Lojas Renner since April 1998, having held the position of Chairman of that Board between 1999 and 2005 and is currently President of the Strategic Committee and member of the Sustainability Committee. He was Superintendent Director of Lojas Renner SA, from September 1991 to March 1999, when he was elected President Director, a position he held until April 2019. He was Director of Renner Administradora de Cartão de Crédito Ltda., Dromegon Participações Ltda., Realize Participações SA and Realize Crédito, Financiamento e Investimento SA, all companies linked to Lojas Renner SA. He has worked in retail for more than 30 years, having been a member of the Board of Directors of Instituto para Desenvolvimento Retail (IDV). He is a member of the Board of Directors of Itaú Unibanco Holding S.A. since April 2016 and Ultrapar Participações S.A. since April 2019. He was a member of the Board of Directors of SLC Agrícola S.A. from April 2007 to May 2016 and of Localiza Rent a Car S.A. from October 2010 to June, 2020, having been Vice-Chairman of that Board from April 2019 to June 2020. He is currently Ambassador of Endeavor Brasil in Rio Grande do Sul and Vice-President of the Deliberative Council of Instituto Caldeira, an innovation ecosystem in Porto Alegre. He was also a member of the Deliberative Council of Instituto Lojas Renner from June 2008 to April 2019.

Mr. Galló graduated in Business Administration in 1974 from Fundação Getúlio Vargas.

Osvaldo Burgos Schirmer. Independent Member of the Board of Directors of Lojas Renner since April 2012 and was Chairman of the Board from April 2013 to April 2019. On April 18, 2019, he was elected Vice-Chairman of the Board of Directors. He is Chairman of the People Committee, and a Member of the Company's Audit and Risk Management Committee. He is a member of the Board of Directors of public companies, SLC Agrícola SA, since June 2013, of YDUQS (Ex-Estácio), since April 2016, and chairs the Financial Committee to support the Board of that Institution. He is a Advisory Board member of CMPC Produtora de Celulose e Papel, with headquarters in Chile, but with relevant operation in Brazil by Celulose Riograndense, since June 2016; of SLC Participações, a closed family holding company of the SLC Group, since April 2017; of META Soluções de Informática, since January 2019; of FCC FCC Indústria e Comercio Ltda., chemical company, manufacturer of products for the automotive, pharmaceutical, footwear and civil construction industries, since March 2020; of OLEOPLAN, biodiesel producer, since October 2020 and of CFL Construtora e Incorporadora with operations in the states of Santa Catarina and Rio Grande do Sul, since October 2020. As an executive he worked at the Gerdau Group from 1986 to January 2013, when he retired. At this company he was Finance Director, CFO and Vice President and member of the Executive Committee. Since February 2013 he is a member of the Board of the American Chamber of Commerce. For five years, until 2018, he was the Chairman of the Board of this Chamber.

He graduated in Business Administration from Universidade Federal do Rio Grande do Sul, has a Master’s degree in Business Administration from Southern Illinois University (USA) and has concluded several specialization courses, among them one at the Harvard Business School (USA) in Administration for Senior Management.

Carlos Fernando Couto de Oliveira Souto. Independent Member of the Board of Directors of Lojas Renner since April 2015, he was Vice-Chairman of the Board from April 2016 to April 18, 2019, and he is currently member of the People Committee and Audit and Risk Management Committee. He is founder, partner and CEO of the law firm Souto, Correa, Cesar, Lummertz & Amaral Advogados. Board Member of YPO (LAC Region), Associação Escola Panamericana de Porto Alegre (PAS), Câmara Americana de Comércio in Porto Alegre (AMCHAM), of Instituto de Estudos Empresariais - IEE and Hospital Moinhos de Vento in Porto Alegre (HMV).

Graduated in Legal and Social Sciences from the Federal University of Rio Grande do Sul, in 1989, with a specialization in Philosophy and Political Economy from PUC / RS; participated in the FGV Economics and Corporate Law program, and in the graduate program at the Escola Superior do Ministério Público; he is a

graduate of the Harvard Business School (HBS) OPM Program, including the OPM module in Shanghai. He has participated in the Seminar for Presidents for years, a management program organized by FGV in conjunction with YPO, and participated in the YPO Gold Harvard President’s Program, organized by HBS in January 2020.

Fábio de Barros Pinheiro. Independent Member of Lojas Renner’s Board of Directors since August 2014 and he is currently President of the Audit and Risk Management Committee. He has been independent member of the Board of Directors of Banco Pan S.A.. since 2013, Chairman of Itsseg Seguros Inteligentes S.A. since January 2016 and independent member of the Board of Directors of CPSEC (Companhia Paulista de Securitização). He is an independent member of the Board of Directors and member of the CAUD of BNDES, since April 2020. He is a member of the Board of Directors and member of the CAUD of Atakarejo Distribuidora de Alimentos e Bebidas AS, since January 2020. He was independent member of Galvani Indústria, Comércio e Serviços S.A. and Estre Ambiental Inc. and Chairman of Grupo Dilleto and Eneva S.A.. He was also Managing Director of Banco UBS Pactual S.A.. He was independent member of the Board of Directors of Laticínio São Vicente de Minas S.A. from 2013 to 2018.

He graduated in Electrical Engineering from Universidade de Brasília (Brasília) in 1982 and has a MBA from Indiana University (Indiana - USA) in 1992. 12 MATTERS TO BE RESOLVED

4) ELECT THE MEMBERS OF THE BOARD OF DIRECTORS

Juliana Rozenbaum Munemori. Independent Member of Lojas Renner’s Board of Directors since April 2017 and she is currently member of the Strategic Committee. Since July 2013 (until April 2021), she has been a member of the Board of Directors of Arezzo&Co and Coordinator of the Strategy Committee. Since June 2016, she has been an effective independent member of the Board of Directors of Duratex S.A as well as sitting on the Audit and Risk Management Committee and the Committee for Evaluation of Transactions with Related Parties. Since April 2018, is independent Member of EDP – Energias do Brasil S.A.’s Board of Directors, of the Corporate Governance and Related Parties Board and the Inclusion and Diversity Committee. Since December 2018 participates in the Strategy Committee of Suzano Papel e Celulose S.A. and, since January 2019 is Member of the Consultive Board of Euroframa Laboratórios S.A.. Since December 2019 she is member of the Board of Directors of Cogna Educação S.A. and member of People and Governance Committee and coordinator of the Strategy and Innovation Committee. She has 13 years’ experience in Sell Side Equity Research, her primary focus being on companies in the consumption and retail sector. She worked for different financial institutions between 2000 and May 2013, principally at Itaú BBA. From 2013 to 2017, she worked as a consultant in consumption and retailing for the Investment Banking area of Itaú BBA. Over the years, she has been awarded several times by Institutional Investor for her coverage of the retail and consumer goods sectors. Previously, she worked as a Buy Side economist for institutions such as JGP, Pactual and Icatu. She is also a member of the Consultative Board of GoCase and Uatt, companies under the Endeavor Entrepreneurship umbrella, an organization of which she is an active mentor. She has funded the ONG Associação Beneficente Parents in Action, in which she is Financial Officer.

She graduated in Economics from the Pontifícia Universidade Católica (PUC) of Rio de Janeiro and holds a CFA designation.

Thomas Bier Herrmann. Independent Member of Lojas Renner’s Board of Directors since April 2017 and he is currently President of the Sustainability Committee and member of People Committee. Has exercised his professional activities for 47 years at Grupo Renner Herrmann S.A. Since 1997, he has held the position of Chief Executive Officer of Renner Herrmann S.A. He was member of the Board of Directors of Lojas Renner from 1991 to 1998. He was a Director of Iochpe-Maxxion S/A from January 2008 to March 2015. He is a member of the Senior Board of the Rio Grande do Sul Steel Association and, since 2020, he is a leader of the Board of Directors of Hospital Moinhos de Vento, having been president of the latter institution from 1999 to 2005.

He graduated in Business Administration from the Universidade Federal do Rio Grande do Sul and in Law from Pontifícia Universidade Católica (PUC), Porto Alegre.

Christiane Almeida Edington. Independent Member of the Board of Director of Lojas Renner and Member of the Strategic Committee since April 2018. She has a solid experience in the area of Information Technology as well as in implementation of digital business models and in telecommunications. She is an independent member of the Board of Directors and of the Digital and People Committee of JHSF Participações S.A., independent member of the Board of Directors and of the Technology Committee of Padtec Holding, member of the Board of CIONET – a world network of CIOs, she is a director in the Winning Woman Brazil Program of EY, member of the Board of Dataprev where she also have been CEO, being responsible for acts of digital transformation of processes benefiting 35 million people. For 22 years she was a member of the leadership of the Group Telefônica/Vivo, being responsible for digital transformation of the business. As Chief Information Officer of VIVO, she was elected three times the IT Executive of the year by Informatica Hoje and IT Media. Previous experiences as Advisory Director of ZUP IT INNOVATION, as Director of the OESIA Grupo and member of the Board of Directors of LIQ S.A. Graduated in Data Processing – Escola Baiana de Processamento de Dados (1985). She has a post-graduate degree in Software Engineering – Universidade Federal da Bahia (1994); a Master’s degree in Business Management – Fundação Dom Cabral (2000); completed the Personnel Management program from the Universidade de São Paulo (2001); an MBA in Business Management - Fundação Getúlio Vargas (2002); completed the IESE Business School – Universidad de Navarra - Advanced Management Program (2002); an MBA in IT Governance - Instituto de Pesquisas Tecnológicas/USP (2007) and completed the Corporate Governance, Board of Directors program – IBGC (2016).

Alexandre Vartuli Gouvea. Independent Member of the Board of Directors of Lojas Renner since July 2019 and is currently a member of the Strategic Committee. He was a senior partner at McKinsey & Company. During his 29 years at McKinsey, he served clients in financial services, retail, telecommunications, the chemical and metals industry and mining, on strategic, organizational, operational, merger and international expansion topics. More recently, he developed and led the RTS Practice in South America, which offers a proven approach to transformational change in customers looking for radical, fast and sustainable performance improvements. Since joining McKinsey, he has worked throughout Latin America, the United States, Canada and Turkey. At Credicorp Group in Peru he a member of the Board of Directors, member of Nomination Commmittee, in addition of being Chairman of the Audit Committee. He is also a member of the Board of the Banco de Credito del Peru (BCP). Since 2013, he is member of the Board of Directors of Habitat for Humanity Internacional.

He graduated in Mechanical Engineering from the Universidade Federal do Rio de Janeiro (1982) and has13 an MBA in Strategy from UCLA Anderson School of Management (1990). MATTERS TO BE RESOLVED

5) ESTABLISH THE AMOUNT OF COMPENSATION OF THE MEMBERS OF MANAGEMENT

The Corporation submits the proposal for compensation of the management set out below, as well as any additional information contained in item 13 of the Corporation’s Reference Form, pursuant to Attachment IX hereto.

For the fiscal year 2021, the Company's Management is proposing a global remuneration of up to R$ 39.9 million, as notes and tables below. This amount already includes the provisions of Article 152 of Law 6,404 / 1976, the terms of the decision issued in CVM administrative process No. RJ-2014-6629, as well as in CVM Circular Letter / SEP / No. 01/2021. Below, the opening of the global remuneration of the Directors and the Fiscal Council of 2018, 2019, 2020 and the estimated for 2021. Global Compensation of the 2020 2018 (Paid) 2019 (Paid) 2021 (Estimate) Management 1st Proposal AGMFinal Proposal AGM Paid Fixed CompensationR$ 11,262,270.94 R$ 17,956,539.66 R $ 25,500,000.00 R$ 21,048,882.21 R$ 20,746,654.81 R$ 22,420,500.00 Pro-laboreR$ 8,708,973.34 R$ 14,892,876.66 R$ 21,800, 000.00 R$ 17,864,760.00 R$ 17,808,301.59 R$ 19,170,500.00 Committees ParticipationR$ 1,641,600.00 R$ 2,148,200. 00 R$ 2,500,000.00R$ 2,342,400.00 R$ 2,150,453.22 R$ 2 ,400,000.00 Benefit R$ 911,697.60R$ 915,463.00 R$ 1,200,000.00R$ 841,722 .21R$ 787,900.00R$ 850,000.00 Variable CompensationR$ 9,240,949.20 R$ 6,349,451.36 R$ 8,000,000.00R$ 2,851,500.00 R$ 1,362,846.79 R$ 7,0 00,000.00 Meeting ParticipationR$ 946,200.00R$ 494,000.00R$ 0 .00R$ 0.00R$ 0.00R$ 0.00 Variable Compensation (Statutory R$ 8,294,749.20 R$ 5,855,451.36 R$ 8,000,000.00R$ 2,8 51,500.00 R$ 1,362,846.79 R$ 7,000,000.00 Participation) Stock-based CompensationR$ 13,030,852.06 R$ 13,745,9 61.89 R$ 16,000,000.00 R$ 14,910,091.25 R$ 13,628,043.32 R$ 10,500,000.00 Expenses with the Stock R$ 13,030,852.06 R$ 13,745,961.89 R$ 16,000,000.00 R$ 14,910,091.25 R$ 13,628,043.32 R$ 10,500,000.00 Option/Restricted Plans Total R$ 33,534,072.20 R$ 38,051,952.91 R$ 49,500,000.00 R$ 38,810,473.46 R$ 35,737,544.92 R$ 39,920,500.00

* No longer paid as a variable as of Jul / 19

Note: 1) In 2020, there was a 25% reduction in salaries for a period of four months. 2) In the light of the effects of the pandemic, the amounts requested for (Variable Remuneration) Statutory Participation in 2020, were based on the perspective of reaching 50% of target. In 2021, the meeting of the target in full is being assumed. 3) From 2021 onwards, the Executive Board’s variable compensation is also linked to ESG goals. 4) The stock option plan’s pricing methodology used to determine the values in the above table is based on the guidelines provided in CVM Decision 562 and CPC Announcement 10. According to these regulations, companies are required to book their mechanisms at fair value, using consistent and recognized methodologies. The Company uses the Black&Scholes model, which is widely used in the market and takes into account parameters such as the stock’s trading price on the day of the awarding, option strike price, stock volatility history, and more. The output of the Black&Scholes model used for the purposes of determining accounting expenses may be interpreted as the present value of potential future gains from the stock options calculated on the date of ach awarding and with pro-rated accrual over the vesting period, with no value changes irrespective of later stock price changes. It is therefore worth emphasizing that the results shown in the above table do not represent effective financial gains made by the executives in the fiscal year at hand, as the concept of stock options implies risks of the executives not realizing any gains as a result of terminations, which may cancel the options awarded, and mainly to potential devaluations vis- à-vis de strike price while the option is in force.

Pursuant to Section 14 of Corporation’s Bylaws, the Board of Directors is entitled to distribute the amount of global compensation individually among the officers, upon consideration of the People Committee’s report.

The Corporation recommends to its shareholders to duly exam the documents provided by the management of the Corporation, in order to resolve about the Amount of compensation of the members of management. Additional information on the compensation earned by Managers and members of the Fiscal Council available in Attachment IX hereto.

14 MATTERS TO BE RESOLVED

6) ESTABLISH THE NUMBER OF MEMBERS OF THE FISCAL COUNCIL

Pursuant to caput Article 27 of the Company’s Bylaws, the shareholders shall decide at the Annual General Meeting the effective and alternate number of members to sit on the Fiscal Council. According to the Company’s By Laws, the Fiscal Council shall be composed from three (03) to five (05) sitting members and equal number of alternate members.

Management's proposal is that the number of Fiscal Council members remain the same as current, or three effective members and three alternate members.

The Company believes that the proposal to maintain the existing number of members on the Fiscal Council is in accordance with the principles of corporate governance currently being followed.

7) ELECT THE MEMBERS OF THE FISCAL COUNCIL

Pursuant the Corporation Bylaws, the Fiscal Council will be permanently installed and shall be composed of 3 (three) to 5 (five) effective members and alternate members in equal number. The amount shall be defined in the Annual General Meeting, with unified term of office of one (01) year, being allowed reelection.

Pursuant article 27 of the Corporation Bylaws, the majority of shareholders attending the AGM shall elect the majority of the Fiscal Council’s members and their respective alternate members. The remaining shareholders shall elect the remaining members, as well as their alternate members.

In 2020, the Fiscal Council of Lojas Renner met 8 times, four of which being interactive meetings with the External Auditor. The Fiscal Council also was present during part of the meetings of the Audit and Risk Management Committee in addition to parts of the meetings of the Board of Directors on the occasion of approval of the Financial Statements and Management Report, capital budget, share bonus, dividends and interest on capital.

As the Fiscal Council is permanent and, if not appointed by shareholders, the current members are suggested annually for reelection. However, for this election, the shareholder Previ - Banco do Brasil Employees' Pension Fund requested the reappointment of the two Councilors (effective and alternate) appointed by them in 2020.

In the event of there being no further nominations by shareholders to compose the Fiscal Council, shareholders present at the General Meeting shall elect the members to the Fiscal Council from among all those nominated for this position, including those listed in Attachment VIII.

The document containing the principal information on each one of the members for election to the Fiscal Council, including those listed in items 12.5 to 12.10 of the Reference Form attached to Instruction 480 can be found in this Manual under Attachment VIII.

Suggested by the Company:

EFFECTIVE MEMBER Joarez José Piccinini. He is effective member of the Lojas Renner S.A. Fiscal Council since April 18,2019. Since 2009, he has been Financial Services managing director (Banco Randon and Randon Consórcios). He is also Institutional Relations Officer of Randon and Chairman of tha Deliberative Board of RandonPrev. He has more than 20 years of activity in the Brazilian financial market, also with spells at the financial institutions of BankBoston, Sogeral and Maisonnave and with a broad-based experience in the international financial market, residing for 10 years in London, (FleetBoston/ Bank of America and Votorantim). While in London, he was a Councilor of the Brazil-United Kingdom Chamber of Commerce. Currently, he is Economic and Finance Director and Councilor on the Caxias do Sul Chamber of Commerce and Industry. He graduated in Business Administration, with specialization course in Capital Markets, Derivatives and Analysis of Risk and Credit, the latter held in Boston, and has an MBA in Marketing from ESPM. He also completed a Board Directors course run by the IBGC (Brazilian Institute of Corporate Governance), São Paulo.

ALTERNATE MEMBER

Roberto Zeller Branchi. He is an alternate member of the Lojas Renner’s Fiscal Council since April 29, 2020, he was elected alternate member of Lojas Renner’s Fiscal Council from April 2016 to April 2019. He is a partner at Ardenas Partners, was Controller at CRP Companhia de Participações and CFO at Rexnord Correntes Ltda., As well as having worked as Senior Manager at PricewaterhouseCoopers Auditores Independentes. He is a professor in several MBA's and Specializations, member of committees with the Federal Accounting Council (CFC) and Rio Grande do Sul Regional Accounting Council (CRC / RS). Associated with IBGC - Brazilian Institute of Corporate Governance. He is graduated in Accountability in 1999, post graduated in Management Controlling in 2001 and has a Master in Economics by Universidade Federal do Rio Grande do Sul in 2011. 15 MATTERS TO BE RESOLVED

7) ELECT THE MEMBERS OF THE FISCAL COUNCIL Suggested by the Company: EFFECTIVE MEMBER Roberto Frota Decourt. He is an effective member of Lojas Renner‘s Fiscal Concil since August 03, 2020, he was an alternate member of Lojas Renner’s Fiscal Council from April 2010 to July 2020. He has been a Managing Partner at the Instituto Pantex de Pesquisa Ltda. since 2001, working as consultant and coach in the field of financial and risk management. He has been member of the Board of Directors of Connectplug since 2018. He was an effective member of the Fiscal Council of Metalúrgica Gerdau S.A. from 2007 to 2011 and from 2014 to 2016. He doctorate lecturer at Unisinos - Universidade do Vale dos Sinos (RS) since 2005. He also has an ESG certification from CFA-UK.

Mr. Decourt has a degree in Business Administration and a Doctorate in Administration from EA/UFRGS - Escola de Administração da Universidade Federal do Rio Grande do Sul. He also has a Post Doctorate degree in Finance from Université Grenoble Alpes.

ALTERNATE MEMBER Vanderlei da Rosa Dominguez. He is an alternate member of Lojas Renner Fiscal Council since October 2020. He has been an effective Member of the Fiscal Council of Odontoprev S.A. since April 20107; of WEG S.A. since April 2014; of Equatorial Energia S.A, Equatorial Pará Distribuidora de Energia S.A. and Equatorial Maranhão Distribuidora De Energia S.A. since April 2015; of da Valid Soluções S.A since April 2106; and of Triunfo Part. e Investimentos S.A. since April 2018. Was formerly a Member of the Fiscal Council of Marcopolo S.A., of Ideiasnet S.A., of Cosan S.A., and more. Is a legal expert or advisor to the court in labor claims, termination of entities and other affairs. Former managing partner of HB Audit – Auditores Independentes, successors to Handel, Bittencourt & Cia. – Auditores Independentes, where he was a partner from February 1994 to June 2016, having been engaged with the firm for 28 years (since 1988) and served as Person in Charge before the Brazilian Securities and Exchange commission (Comissão de Valores Mobiliários – CVM). Mr. Da Rosa is has a Bachelor of Accounting Degree from Universidade Federal do Rio Grande do Sul (January de 1990). Indicated by Previ : EFFECTIVE MEMBER Estela Maris Vieira De Souza. She is an effective member of Lojas Renner’s Fiscal Council since April 29, 2020. She started her career at PricewaterhouseCoopers (PwC) in August 1987, and from 2000 to 2018 she was audit partner. She elected to take early retirement from PwC in January 2019. She led audit engagements and consulting assignments for Brazilian and multinational companies of various sizes covering diverse business segments. She led teams of advisors to investors in the privatization process of the telecommunications sector in Brazil (privatization of the Telebrás system) in 1998. Over a period of 15 years, she was the lead PwC Brazil partner responsible for delivering professional services to the Technology, Communication, Entertainment and Media sector and was a full member of the PwC. She is a member of the Board of Directors of Transportadora Sulbrasileira de Gás. Coordinator of the Track & Field Audit Committee. Member of the Audit Committee of the Agência Gestora de Fundos Garantidores e Garantias S.A. – ABGF. Member of the Audit Committee of Localiza S.A. Bachelor's Degree (B.S) in Business Administration and Accounting Sciences from the Pontifical Catholic University of Rio Grande do Sul (PUCRS). MBA in Marketing in Services from the Institute of Administration (FIA / USP), Master (Msc) in Accounting and Controllership from the University of São Paulo (FEA / USP), MBA in Digital Business from Universidade Positivo (in progress). Board Member certified by the Instituto Brasileiro de Governança Corporativa (IBGC).

ALTERNATE MEMBER Isabel Cristina Bittencourt Santiago. She is an alternate member of Lojas Renner’s Fiscal Council since April 2019. She was elected member of the Board of Directors and Chairman of the Audit and Risk Management Committee of IIA Brasil, since 2017. Fiscal Council Member (alternate): Fundação Renova since May 2020 and São Martinho S.A since 2017; Fiscal Council Member: Nova Fronteira Bioenergia S / A (joint venture between São Martinho SA and Petrobrás BioEnergia SA): from 2011 to 2017. Chairman of the Fiscal Council of Aceprev (Closed Entity for Private Pension Plans): from 1999 to 2012 and of the Aperam Acesita Foundation: from 2010 to 2011. Executive Manager of Internal Audit and Risk Management (Regional: Americas); Compliance manager with SOX & Controls Internos e Contabilidade and member of the Compliance Committee at Aperam S.A since 1992. Financial and Investor Relations Director: Metaltrust S.A.: from 2009 to 2012. Graduated in Accounting and Business Administration; “Master Business Administration” (MBA) Business by Fundação Dom Cabral; Fiscal and Administration Counselor certified by IBGC - Brazilian Institute of Corporate Governance; Certified by IIA Global: in Internal Auditing (CIA - “Certified Internal Auditor”) and in Risk Management (CRMA: “Certification in Risk Management Assurance”). Certified in “Business English” by the University of Cambridge. Publication of articles in “IIA Notícias” about the CIA Audit and Certification Committee. Commentary on an article: “The time and turn to choose the best tax regime” published in the Accountant's Monthly.

8) ESTABLISH THE AMOUNT OF COMPENSATION OF THE MEMBERS OF THE FISCAL COUNCIL

The compensation of the members of Fiscal Council shall be fixed in the AGM and the compensation to each member shall not be lower than ten per cent (10%) of the average compensation attributed to each executive officer, not included the benefits, allowances and shares profits.

For 2021, the Administration proposes to fix the values practiced in 2020, adjusted by the INPC inflation index 2020 bringing the total value of R$ 669.4 thousand. This amount is included in the aggregate compensation of Management shown in item 5 above.

Further details on the compensation of the members of Fiscal Council are set out in the Attachment IX hereto. 16 ATTACHMENTS

ATTACHMENT I

MANAGEMENT REPORT AND ANALYSIS

INTRODUCTION

In compliance with the legal provisions and in accordance with Brazilian corporate law, Lojas Renner S.A. presents as follows its Management Report, with comments on the operational and financial results for the fiscal year ending December 31, 2020. This report is a component part of the Company’s Financial Statements which conform to the international accounting standards (IFRS), issued by the International Accounting Standards Board (IASB). The information presented herein is aligned to the Company’s Integrated Report which respects global best practices and IIRC (International Integrated Reporting Council) guidelines.

MESSAGE FROM THE MANAGEMENT

The year 2020 will go down as a landmark period in history. Not only because of the pandemic and the intense and unpredictable days we have been living through but also for the entire transformation and evolution seen in our businesses.

For us there is no doubt that we are leaving 2020 much stronger, agile, and more resilient. We have reinvented our business in many ways and despite everything, today we are a better company with opportunities to accelerate all of our plans and goals set for our digital transformation and the continued physical store expansion in Latin America.

But before talking about the future, we believe it is worth emphasizing our initiatives and lessons learnt during this past year. We were pioneers in our sector, taking the difficult but correct decision to temporarily close all our physical stores in March prior to any government edicts and moves by the market at large. We worked arduously to do something never previously imagined and, as we always do, placing people at front and center of our decisions, choosing the preservation of health and lives while maintaining our business, employment, and the activation of the businesses as much as possible. At the same time, we continued to pursue the organization of the operations at the Distribution Centers and the Call Centers allowing us to proceed apace on our journey with safety for our customers and teams, respecting one of our core values: PEOPLE.

In parallel, we reinforced our balance sheet, reassessing projects and investments for the year and reducing planned dividend payouts. Equally, we endeavored to seek out financial resources allowing us to maintain a comfortable cash position, this permitting us to support our principal commercial partners through the supply chain. At the same time, we mobilized our collaboration with the community in general through a range of different initiatives undertaken by the Lojas Renner Institute.

Subsequent to the organization of the business environment, we began to plan our actions for the resumption of normal activities. The reopening of the stores took place very gradually, since closure in March, the store network was only fully up and running at the end of August, albeit with some restrictions on operations. Indeed, the situation proved to be still more challenging than we could have ever imagined, but in spite of all, we persisted and accelerated our transformational initiatives, bringing more and better products and services to market.

We continue our journey having seen an enormous advance in online activities, which today has risen to new heights of growth and relevance as part of the overall business. Our digital channels already represent more than 12% of total sales with a growth of 126,0% in 2020. We know that all the steps implemented so far can be expected to bring with them innumerous new opportunities.

From the operational point of view, we have seen great progress. In logistics, we have enhanced productivity at the Distribution Centers, accelerating deliveries, reducing lead times, and improving the customer experience. In e-commerce, we have incorporated new functionalities and services in our application. These lend greater autonomy to the customers through the use of tools for tracking orders and managing their information more independently. Again, in online activities, we multiplied five times the number of items available and began delivering 20% of sales using inventory from the physical stores.

Following resumption of activities at the stores, we also accelerated our omni offering. In addition to initiatives involving product sales via Whatsapp and through Fashion Delivery – involving the data-driven choice and dispatch of items to registered customers – we know that many of our consumers who went digital, have now become omni customers as well. During the year, we were among the most downloaded of the fashion applications, with a corresponding exponential increase in the number of customers. Now, these customers, already accustomed to purchasing online and offline, have begun to enjoy the benefits that an omni operation offers – users of which historically purchase up to three times more than the average and more frequently: greater ease in delivery of orders at the stores and simplification of exchanges, when compared to the experience with returned items via the postal service, not to mention greater speed of delivery with the stores serving as distribution hubs located nationwide.

Also, during 2020, we introduced one more important initiative with the Infinite Aisle pilot operations where e-commerce customers now also have the inventory of the physical stores at their disposal. This will ensure the greater availability of inventories, reflecting in higher turnover of merchandise, reduced need for markdowns and freeing up space at stores to carry on new collections.

As support for these initiatives, we also have structured new areas, subdividing responsibilities, and giving greater focus to the businesses. We now have in place an executive dedicated to Realize CFI for the digital agenda and to oversee the growth of our finance arm. At the same time, we have established the Agility area for disseminating agile methods throughout the

company, creating tribes and squads for the projects. We have also set up a new Data department and given new duties to the technology team, today with a contingent of more than 700 people between insourced and dedicated outsourced staff, and implemented a Strategy and New Businesses area which will give traction to the partnerships, investments, and acquisition agenda.

We also continue to invest in other retail brands: we have accelerated e-commerce operations and remain focused on digitization, at the same time exchanging best experiences and initiatives. Camicado underwent a comprehensive process of improvements to the commercial operation as well as seeing important adjustments to management. Very consistent results are already apparent in addition to the major evolution in e-commerce and omni offering as well as continuous marketplace expansion. Thus, the penetration of digital sales was 25.9% at Camicado. At Youcom, we continue evolving, more especially with respect to online, which reached a 9.4% share in sales. We have launched the app and we are investing in the same tools and services as are already offered by Renner. At Ashua, we continue enhancing brand value and consolidating our omni model of operation.

Equally at Realize, we are pursuing the digital transformation journey, facilitated by new customer behavior. In the light of the long period of store closures, we digitized payment processes and contact with customers, Realize recording more than 20 million monthly visits to the app and the Renner website. Currently, 80% of customer-card interactions are digital.

With no doubt, a year of challenges but also one of beating the odds. In 2020, we reported R$ 7.5 billion of Total Net Revenue and our Net Debt was R$ 712 million, equivalent to 0.6x Total Adjusted EBITDA. We also invested R$ 544.0 million in expansion and digitization of the Company while our market cap stood at R$ 34.5 billion as at December 31, 2020. Again, our Net Income totaled R$ 1.1 billion and 25% was approved for distribution as payout to the shareholders. In addition, we have evolved much in the way we work and view things, in the roles we play and in the solutions proposed. We act with determination, transforming the Company in the quest for productivity and velocity in generating greater degrees of enchantment, our omni customers, consequently with greater engagement, frequency and repeat purchases. All this with strong activity based on three important pillars: innovation, digitization, and sustainability.

On the ESG matter, we can also report progress. In addition to measures for supporting and collaborating with the community during the pandemic, in 2021, we moved ahead in actions for achieving our public commitments in sustainability and continue to be a component in portfolios of important indices relating to the theme, such as the ISE, IGC and the ICO2, not to mention the DJSI World, the MSCI Brazil ESG Leaders and the CDP Climate Change. We have also been included in the new S&P B3 ESG index, being placed first in the list of 10 qualifying companies. Again, on the governance theme, in 2020, we commemorated our 15th year as a pure widely-held corporation, a fact of which we are very proud, particularly when it is recalled that in 2005, we were the very first company in Brazil to have all its shares traded on the Brazilian Stock Exchange. Additionally, we signed an agreement with Women on Board (WOB) in which we have committed to maintain, at least, two women on the Board of Directors. During the year, we also concluded the project for adjusting our business to the new General Data Protection Law, an important step for guaranteeing the use of information in a safe and responsible manner.

So, we conclude our journey through 2020, a year which raised three clear opportunities: the first relating to new behavior on the part of consumers, allowing us to increase the number of omni customers and leverage the integration of the on- and off-line channels. The second relates to the readjusting of the apparel sector following a difficult year, in which it is apparent that there will only be potential for those organizations with clear competitive advantages to increase their market share. And thirdly, the opportunity relating to commercial relations which strengthened during the course of the year, thanks to the way we handle our relationship with our major partners, our suppliers.

Our main objective is to continue accelerating the integration of the physical stores and e-commerce channels, combining the retail operation and Realize, based on a fashion and lifestyle ecosystem, this forming the foundation for all the businesses in innovation, digitization, and sustainability. In this way we shall achieve our four first public commitments in ESG as well as launching new challenges in this respect going forward.

In the context of the ecosystem, we shall continue to stand out both in terms of product and lifestyle, investing in quality and fashion, always alert to the opportunities of partnerships, corporate interests and new businesses evolving out of the combination of the retail and Realize brands. For this purpose, we shall invest a total of R$ 1.1 billion for the rollout of 20-30 Renner stores, between 5 to10 stores for Camicado, 5-10 for Youcom and about 5 units for Ashua, as well as for the construction of this ecosystem and its platform.

And finally, we cannot fail to give special thanks to our employees and executives who have remained engaged in spite of so many challenges, not only in the Company but also in their personal lives; to suppliers which have remained committed and allowed us to conduct the operation in safety; to the shareholders that have supported us in this trajectory; and to the customers and the community in general that have been instrumental in making us one of the most recalled companies during the pandemic according to a Croma Insights Institution survey and again being recognized by Interbrand as the 11th most valuable brand in the Country.

Thank you all!

José Galló Fabio Adegas Faccio Chairman of the Board of Directors Chief Executive Officer

MEETING THE CHALLENGE OF THE PANDEMIC

From the very first signs of Covid-19, Lojas Renner adopted actions anchored in its convictions and values, prioritizing the health of employees and customers, and as the first retailer to temporarily close all its physical stores in Brazil, in the certainty that it was the best decision for the moment. Simultaneously, the Company reacted rapidly and responsibly, defining its objectives and focus on how to act, based on four pillars divided into four operational phases. And thereafter setting its focus on levels of service with a view to performing faster and better and, principally, adapting to new consumer habits which have driven the acceleration of the digital transformation.

PILLARS OF ACTIVITY

In the context of the four pillars of activity, several measures were adopted for the protection and safety of the teams, customers, and partners in addition to the maintenance of employment, preservation of financial health and the sound functioning of the businesses. At the same time, a large collaborative network was mobilized in order to multiply efforts and investments to tackle the sanitary and economic crisis, extending support to healthcare establishments and socially vulnerable communities.

PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 PRESERVATION OF HEALTH PRESERVATION OF PRESERVATION OF SUPPORT TO HOSPITALS AND AND LIVES EMPLOYMENT FINANCIAL HEALTH COMMUNITIES

▪ Administrative teams in ▪ Use of vacation time ▪ Reduction in Capex ▪ Donation of R$ 5.1 million and home-working regime 1.7 million masks and PPEs ▪ Use of the hour bank ▪ Reduction of payout to 25% ▪ Temporary reduction of mechanism ▪ Support to hospitals teams at the DCs and Call ▪ Reduction of expenses Centers ▪ Commitment not to ▪ Donation to RJ health support terminate for at least 60 ▪ Debt raising to bolster cash fund ▪ Temporary closure of all days (R$ 2bi) stores in Brazil, Uruguay, and ▪ Donation of funds to low- Argentina ▪ Use of the Provisional ▪ Revision of orders and income communities Measure for suspending purchase requests ▪ Promoting social distancing labor contracts of ▪ Minimum income support for with safety protocols for temporarily inactive ▪ Support to suppliers by scavengers and seamstresses those activities where employees anticipating receivables living in communities close to operations were head office in Porto Alegre maintained ▪ Use of the Provisional ▪ Support for suppliers in Measure to reduce the triangulations and in access ▪ Partnership with Hospital A. ▪ Transportation provided for working day and salaries to bank credit lines Einstein’s Eretz.bio startup DC and Call Center teams by 25% for management incubator and staff ▪ Support for suppliers on (inovacaodobem).com labor, legal and tax issues ▪ Distribution of masks to low- income communities

OPERATIONAL PHASES

In addition, the Company went through four important phases: the first between the end of March and the beginning of April directed at securing the safety of all; the second, focused on business reorganization and the start of online acceleration; the third, with the objective of a gradual and prudent reopening of the physical stores at the same time significantly leveraging online sales; and the fourth phase, the reopening of all stores to move forwards at full speed.

PHASE 1 PHASE 2 PHASE 3 PHASE 4 SAFETY BEGIN WALKING AGAIN BEGINNING OF THE RESUME FLYING (March to April) (April) RECOVERY (Abril onwards) ▪ Continue evaluating and ▪ Ensure team safety ▪ Adopting measures for implementing new gradually increasing ▪ Continue evaluating and measures whenever ▪ Special attention to higher volumes implementing new necessary risk groups measures whenever ▪ Start online acceleration ▪ Accelerate on-line by ▪ Reduce the velocity of the necessary leveraging synergy of the operation to the maximum ▪ Begin acceleration of ▪ Accelerate on-line by omni and expand inventory strategic projects for digital leveraging synergy of the availability in full ▪ Revise procedures, transformation, innovation, operations, processes, omni and expand and sustainability ▪ Operate with all the plans, projects, and actions inventory availability physical stores and expand in the light of the new ▪ Prepare physical stores for ▪ Begin the gradual conditions plan of gradual reopening opening of the physical ▪ Gradually resume other adapted to the new activities while still prioritizing ▪ Revise the financial plan stores circumstances home working in the ▪ Gradually resume other management and back ▪ Reinforcecash position ▪ Implement new procedures activities while still office areas for preservation of health ▪ Increase communication prioritizing home working with all stakeholders ▪ Resume supplying the stores in the management and in safety back office areas

MACROECONOMIC SCENARIO

The year 2020 was marked by the effects of Covid-19, impacting the economy not only in Brazil but worldwide. Restrictions imposed by social isolation has had some important effects on several sectors, on household incomes and investments in the country. With the aim of minimizing these impacts, certain policies for fiscal and employment preservation purposes were introduced as well as an income support scheme which benefited economic sectors at different levels.

As the situation with the pandemic improved and with it restrictions on economic activity gradually lifted, there were changes in different regions and business segments. In apparel retailing, footfall through the malls gradually recovered to normal levels and with them, segment sales evolved in tandem from April, to reaching turnover closely matching that of October 2019 according to IBGE’s PMC – Monthly Retailing Survey. Notwithstanding, a further surge in Covid-19 cases at the end of the year saw fresh restrictions on movement, consequently again reversing this trend.

THE COMPANY

Lojas Renner S.A. was incorporated in 1965 and represents the largest fashion and lifestyle ecosystem in Brazil. The Company has 606 stores in operation, of which 594 are located in Brasil through the Renner, Camicado, Youcom and Ashua networks. There are a further 12 Renner units in Uruguay and Argentina.

In terms of logistics, there are three Distribution Centers (DC) with one dedicated DC for Camicado business as well as a cross docking facility. The Renner businesses also include Realize CFI, which manages financial products. The Company has its administrative head offices in Porto Alegre (RS) as well as offices in China and Bangladesh for international trading and vendors development.

In line with the Company’s current Digital Cycle, important progress was registered in the implementation of various initiatives related to three key projects comprising the transformation process: the first is the development of the Customer’s Single View for creating a personalized and consistent relationship with the consumer through greater assertiveness of communication and relationship with the brand. The second involves the use of data for the Product Life Cycle employing Artificial Intelligence in processes ranging from the capture of fashion trends to distribution of items in the stores. And the third is the Omnichannel Transformation designed to ensure that the purchase process for the customer is a seamless one with the complete integration of on- and off-line channels.

Additionally, 2020 was an important year for the increased integration of all the companies under the Lojas Renner S.A. umbrella, the aim being to structure and strengthen its fashion and lifestyle ecosystem, generating greater synergies between the businesses as well as strengthening the Company’s strategy.

CORPORATE VALUES

ENCHANT… to exceed customer expectations. OUR WAY… to do things in a simple and agile manner, with great energy and passion. PEOPLE… to hire, develop and retain the best people. OWNERS OF THE BUSINESS… to think and act like owners of our business unit. OBSTINATE PURSUIT OF RESULTS… to seek results and not just good ideas. QUALITY… our products and services have the highest level of quality. SUSTAINABILITY… businesses and attitudes based on the principles of sustainability.

WE LOVE CHALLENGES: not knowing that something is impossible, we just go ahead and do it!

CULTURE OF ENCHANTMENT

Enchantment is part of the very essence of Lojas Renner and its reason for being, permeating its relationship with all stakeholders, but first and foremost, the customers. And it was with this purpose in mind and in the role of influencer of people that during the pandemic, innovative forms of communication were created in a connection which sought to support wellbeing and foster care with personal health. With this in mind, the Company launched musical events, fashion podcasts, online classes, and a range of programs for increased approximation with its stakeholders.

Still in the context of a relationship connected to the value proposal, the Company continued to report progress in its quest for a Customer’s Single View as a means of achieving improved knowledge of the consumer and the offer of personalized and enchanting experiences at all points of contact. Through the use of analyses and transformation of integrated data, the active customer base increased with 80% of sales identified. In addition, statistical predictive behavioral models have been developed facilitating customized campaigns, driving up frequency of visits, average ticket, and number of items per shopping bag.

Progress made in the customer relationship came additional to several improvements in the different sales channels bringing greater flexibility and Customer Satisfaction Level Enchant meter digitization in the consumer’s journey ranging from access to the products to the execution of the purchase. Consequently, even in the context of Covid-19 3.2% 3.6% 5.1% 3.0% 1.0% 11.6% 15.6% translating into serious restrictions on physical store operations, the Company 30.1% 28.4% 23.7% has continued to exceed customer expectations to reach record levels of enchantment: 99.0% satisfied or very satisfied.

81.4% 87.4% 71.3% For more than 20 years, the Company has been a pioneer in the development 66.7% 68.0% and use of the Enchantmeter, equipment used to measure the customer’s shopping experience and located at the exit of each Renner store. This culture has been perpetuated through the medium of 890 thousand Stories of 2016 2017 2018 20192020 Very Satisfied Satisfied Unsatisfied Enchantment: real life situations in which customers were surprised by extraordinary initiatives on the part of employees in all countries where Renner has operations.

RENNER

The Company’s’ principal business is its network of Renner stores. These represent 90% of total Net Revenue. Renner seeks to deliver the best experience in fashion to middle/high income groups with quality products and services at competitive prices. The network develops and sells apparel and footwear for women, men, and children through 20 proprietary brands, of which eight represent the Lifestyle concept, where each one reflects its own style of being and dressing. It also sells accessories and cosmetics as well as offering merchandise in some categories with third party labels.

The store network has a total of 373 units in Brazil, 8 in Uruguay as well as 4 in Argentina. The stores have an average sales area of 1.8 thousand m2 and 91% of them are located in shopping malls. In addition, Renner offers its products via e-commerce platforms in both Brazil and Uruguay.

STORES In 2020, Renner continued to pursue its physical expansion plan, although at a Number of Stores and Selling Area Renner 709.9 slower rate than usual due to the advancing Covid-19 pandemic. 683.7 632.7 Consequently, 7 stores were rolled out in the period while two units were closed 599.8 in the light of the frequent process of reviewing the profitability of the 538.4 operations. At the end of the year, there was a total of 385 units in operation 380 385 330 351 with an aggregate 709.9 thousand m2 of sales area. 300

In the operational context, the Company continued to innovate and invest in the Omni Transformation in spite of the restriction on activities, more especially during the temporary closure of the units. During the year, there were some 20162017 20182019 2020 important developments both in the implementation of new forms of sales as Selling Area* (thousand m2) Number of Stores well as deliveries. * Includes Ashua

In addition, many of the services already in place proved even more essential during the pandemic, such as mobile checkout alternatives and accounting for 20% of store sales. In this context, all stores offer Mobile Payment Sales whereby the store assistant using specific devices, completes the purchase at any point in the sales area, and the Digital Sale, in which e-commerce products are sold in the stores. Again, payment can be made via self-checkout desks, these already representing 12% of the sales of units where this service is available. Also implemented throughout the network was the Digital Payments service where payment of purchases is made through the customer’s smartphone using the Renner app, this recording a total of 200 thousand operations since its launch.

As to new ways of shopping, the Company now offers a range of alternatives: Social Sales (Minha Sacola) allows anyone to announce Renner’s products, receiving a commission for the generated sale. At year-end, there were already more than 17 thousand affiliated participants in the Social Sales operation. Similarly, purchases can now be transacted via Whatsapp, already operational at 80 stores and notable for high conversion rates, as well as the Call and Buy scheme, for sales by phone. The Fashion Machine was also launched in the form of a test vending machine at a subway station in the city of São Paulo, a shopping experience which is 100% autonomous. And, last but not least, Renner launched Fashion Delivery, as a pilot operation at 17 Renner stores, using analytics for defining target publics and dispatching a selection of items to the residence of the indicated customer based on their own personal preferences.

In relation to delivery, the Company enhanced convenience for receiving products and for this purpose, the implementation of REFID in 2019 was a fundamental step towards a greater assertiveness in inventory management and integration of on- and off- line. On this front, initiatives were launched not only through the Store Pickup service offered since 2018, but also using the drive- thru model, providing flexibility and security during the store shutdown period as well as the Ship from Store service, available at more than 180 units, with the offer of faster delivery times. Another important initiative was the Infinite Aisle, implemented in September, whereby the full range of store inventory becomes available to the e-commerce customers as well. This resource serves to maximize online sales by considerably expanding the assortment and depth of items available to customers, increasing the participation of store inventory in meeting the demand from online shoppers. As a result, by the end of the year, 20% of all digital sales were being serviced from the physical units.

DIGITAL SALES

The Covid-19 pandemic also brought important changes in the consumer behavior, who migrated massively to digital sales channels as restrictions were placed on personal mobility. Following the period of the intentional slowing in sales at the end of March for adaptations to the operation and with this, ensure employee health and safety, the Company embarked on an intense process of ramping up the digital channels with a significant increase in the number of items available. As a result, digital sales increased 126,0%, recording spikes in growth of more than 200% during the year, and gained relevance in the context of the overall business, reaching 12,3% penetration.

Investments were also increased in content focusing on complicity with the customer through information and tutorials on fashion, behavior, and well-being in addition to the Renner Live Music events and Renner Live Shop, with experts in fashion and beauty. In addition, various improvements were made in the customer shopping experience, giving more autonomy in such questions as request for exchanges and merchandise returns directly through the platform; flexibility in the acceptance of new forms of payment such as Apple Pay and PIX; as well as in usability with the creation of instruments such as the Ideal Bra Guide and size measuring rules.

All these initiatives were reflected in an increase of 134% in traffic and the number of active customers more than doubled during the year. There was also a significant increase in new customer numbers of more than 160%, representing nearly 70% of the total customer base and more than 50% of the sales. The participation of the app was the outstanding feature of the year with a growth of 205% in the number of downloads, the most downloaded among online fashion players, and accounting for about 50% of the digital sales. As a result, Renner was again recognized with the EBIT Favorite Fashion Store Award.

OPERATIONS ABROAD

Renner has operations in Uruguay and in Argentina through 12 units which adopt the same standard and positioning as the stores in the Brazilian network. The first units abroad were rolled out in 2017 in Uruguay and were an important first step in testing the business model in other markets. Local customer acceptance of the products has been excellent and sales performance in the region proved outstanding during the pandemic. In addition to the 8 physical units, the operation includes an online channel and a hub for directly receiving imported products from Asia and thus avoiding the doubling of import tariffs.

In the light of the performance in Uruguay, at the end of 2019, Renner unveiled 4 stores in Argentina, a country with a large population and a favorable competitive environment with commercial opportunities through the medium of Mercosur. Although only with a limited period of operations due to the temporary closure of stores, customers demonstrated their enchantment with the products and the standard of service offered, the region registering the best Enchantmeter result for the Company. The focus of the operation has been on the stabilization of foreign trade processes and the development of local suppliers for improving lead times.

PRODUCT

One of the main focus areas in 2020 was the support for the supplier chain during the pandemic. All commitments were honored and the Company worked very closely with commercial resale partners to replan orders already in the system, adjusting collections and redesigning products for adaptation to the current situation (more details to be found in the o ESG chapter).

At the same time, the Company has continued investing in technological initiatives and innovations which help get fashion trends more rapidly to the points of sale, lending greater added value and quality to the products. In this sense, Renner was a pioneer in investing in a digital machine for printing items and giving greater sustainability, quality, and velocity to the process, producing on demand and with greater customization. Intensified use was made of the pilot products area, a workshop for cutting, modeling, and sewing for test sampling in the products area and through the use of digital machinery and equipment, reduces not only the number of versions of samples produced, but also transportation for exchanges with the suppliers, giving greater quality, sustainability, and reducing time spent on development and production.

As to systems, Renner continued to implement PLM (Product Lifecycle Management), a system for managing the product life cycle, permitting the digitization of the process for developing pieces, standardization of the processes and the traceability of the items. All nationally supplied production items are already developed, and the relative purchase orders executed using this tool. In 2020, advancement was made on integration with international suppliers.

In relation to the Use of Data in the Product Life Cycle project, in 2020, the Company expanded its coverage to reach 17% of the items already distributed on a data-driven basis at Renner. For this purpose, predictive modeling is used whereby algorithms establish the demand per item and store, thus, higher sales are ensured but with reduced need for inventory. This solution has also been expanded to other Company businesses with pilot operations completed at Youcom and started at Camicado. In addition, Renner launched a similar project using Artificial Intelligence in the procurement process whereby volumes are decided on a data-driven basis.

LOGISTICS

In 2020, the Company was able to report expansion in logistical capacity for meeting the requirements of the businesses, adjustments being made to operational models for new formats in sales, delivery, and product pickups, in line with digital transformation strategies. Operations were diversified, teams reinforced, as well as improvements made in the quality of packaging and preparation of products dispatched and so providing a better shopping experience for customers. Greater synergy between companies under the Company umbrella was also implemented through the sharing of transportation facilities and feeding through to gains in more optimization and more sustainable operations.

As to the challenges of the pandemic, there was rapid adaptation to health and safety guidelines as well as in the replanning of the DCs, networks and rebalancing of inventory anticipating a recovery with enhanced agility and excellence. This calibration was instrumental in reopening occurring with healthy stock levels and a product assortment in line with the rreplenishment of the stores. All this was made possible thanks to skillful and integrated management between Product, Supply Chain and Store Operations, implemented in 2019, and which gained a still higher relevance in the pandemic, allowing more agile and precise decisions.

In the midst of so many changes, the construction of the new Cabreúva (SP) Distribution Center, scheduled for 2022, continued on plan. This DC will ensure gains in efficiency, speed and inter-business synergies and will also service the omnichannel operation.

CAMICADO

Acquired in 2011, Camicado is a specialist store network aiming to enchant people with home and decoration experiences, being the largest national retailer in this segment with a nationwide footprint. It offers a large variety of products, among them articles for household decoration, kitchen and domestic utensils, small home appliances, organization and bed, bath and tableware.

The brand is represented by 113 units, all located in shopping centers with an average sales area of 427 m2. In 2020, 2 units were rolled out and three were closed following a review of profitability.

Some important changes were made in the management of Camicado in 2020 and the network also saw a significant operational improvement, this permeating through to various areas of the business. A review of store activities generated greater productivity while adjustments were made to product mix and commercial strategy.

In the online operation, Camicado accelerated the implementation of improvements to the purchasing process, mainly through the generation of content with educational and entertainment themes helping to generate increased customer engagement. Additionally, progress was made in the omni offer with more stores providing the Ship from Store facility and the implementation of new functionalities such as service via chatbot and sales through Whatsapp. In the same way, Camicado continued to structure its marketplace, with the development of new partners and an increase in the number of sellers in order to offer more comprehensive solutions in home decor to consumers.

YOUCOM

Youcom was launched in 2013 and has as its proposition to enchant and connect young lifestyle people. Youcom operates in a specialized store format with an average sales area of 167 m2 and offers quality services and products with a strong fashion appeal at competitive prices and in an innovative and sustainable way.

In 2020, Youcom unveiled 2 stores and as part of the process of improving the profitability of the operations, closed 3 units. Consequently, in December 2020, had a total of 100 stores in operation with a footprint in all regions of the country, operating out of a total sales area of 16.9 thousand m2.

Similar to the other businesses, the Company also advanced in the digital transformation during the year. In November, the Youcom app was launched while the omnichannel operation gained traction, with the Store Pickup Facility available at all units in the network and the Ship from Store service, available in 33 units. Therefore, the use of the store as a hub for making deliveries for online orders represented 40% of total online sales. In the context of new forms of sales, Youcom was the first at the Company to launch the sending of selected items to the residence of the customer based on their preferences, service known as Youcom at your Home.

Progress was made in the use of data for a greater understanding of the consumer and this has been useful in developing the relationship with the customers and decisions on product mix. And as to the implementation of the Use of Data in the Product Life Cycle project, nearly 6% of the products are allocated to the stores based on Artificial Intelligence.

ASHUA

The first physical units were unveiled in 2018 and by the end of 2020, 8 stores were in operation with an average area of 240 m2. In the context of the physical channel, the brand launched corners with instore locations at three Renner units in Brasília, São Paulo, and Rio de Janeiro, in spaces of 50 m2, representing a high level of productivity.

latter front, it began to offer Whatsapp as a sales channel, this being a highlight in terms of customers adhesion among the business formats of the Company. Ashua also launched Fashion Delivery, with the sending of selected items to the customer’s residence as well as beginning Ship from Store pilot operations.

REALIZE CFI – FINANCIAL PRODUCTS

Realize Crédito, Financiamento e Investimento S.A. - Realize CFI seeks to enchant its customers through financial experiences and solutions that impact their lives. In December 2020, the financial institution had a credit portfolio totaling R$ 3.5 billion mainly made up of two types of product: the Renner Card (Private Label), created in 1973, and the Meu Cartão (Co-branded Card), launched in 2012 with the Mastercard and Visa flags, the latter also susceptible to use at other establishments both in Brazil and abroad. For purchases made at Renner, both cards offer the option of payment in up to five monthly interest free installments or in eight interest bearing installments. Other services are also available to qualifying customers such as the Saque Rápido (Quick Withdrawal), a personal loan facility together with general assistance and insurance services, among others.

As from the temporary closing of the stores following the onset of Covid-19, with the same agility as employed in the retail sector, a series of improvements were put into practice for enhancing the payment experience, through the fine tuning of existing channels, the launch of others as well as promoting customer digitization in the areas of consultations and payments. Additionally, Realize, sought to offer alternatives by introducing more flexibility in making payments during the period of the pandemic, interest free for up to seven days and a line of credit for financing credit card invoices at a cost lower than usual. As a further upgrade in convenience, new facilities and forms of payment were established through correspondent banks such as supermarkets and convenience stores.

During the course of the year, Realize enhanced its portfolio of financial products and services, largely through the digitization of the customer payment process. Improvements were made to the app such as the possibility of issuing a virtual card, contracting loans with deposit in current account, the sale of insurance policies, increasing limits, facilities for making payments in installments and Saque Rapido agreements and simulations. As a result, the numbers of customers interacting digitally with Realize rose from 35% to nearer 80% of the active client base while the card section of the app reached a peak of approximately 20 million visits monthly. Again, the Renner app raised from 26th to 8th place in the means of payment and functionalities App ranking of customer-friendly facilities, according to Cardmonitor, a consultancy specialized in the theme.

In 2020, Realize also reinforced the management team and accelerated strategic decisions on the renewal of its products portfolio, expanding the offer of solutions which have an impact on the lives of the customer and drive the Company’s ecosystem. In this context, there was an increase in the coverage of Meu Cartão, which is now also being offered to new clients while partnerships have been developed for providing benefits and advantages to cardholders. The first steps were also taken to offer investment solutions through the structuring of a bank CD, and a Central Bank authorization was obtained for issuing electronic currency and operating a pre-payment account. The necessary adjustments are also being made for adherence to PIX and a cashback program launched in pilot operation format.

As a result, the perception of Realize’s clients improved increasing by 10p.p. in the NPS (Net Promoter Score) based on a survey by a specialized company in the segment. The finance house was also recognized by Estadão’s Finanças Mais 2020 award in the Finance House category whereby criteria such as performance and market leadership are measured.

ESG – CORPORATE ENVIRONMENTAL, SOCIAL AND GOVERNANCE

ENVIRONMENTAL AND SOCIAL

The Company’s businesses and attitudes are grounded in the principles of sustainability, on the understanding that fashion must be fair, conscious, and responsible. Consequently, the strategic Responsible Fashion plan sets out the priority themes for the sustainability of the business up to 2021. On the basis of these, the Sustainability Committee and the teams work on the continuing identification and minimization of any significant socio-environmental risks along the supply chain and in the generation of value for different stakeholders through projects organized along four fronts:

I. RESPONSIBLE SUPPLIERS

As a retailer, engagement, monitoring and development of the supply chain are critical guidelines in the sustainability strategy. This pillar endeavors to create value from the promotion of respect for the environment and for human and labor rights along the entire suppliers’ chain, mitigating risks and potentializing the positive impact in constructing an ethical, responsible, and sustainable supply chain.

During the pandemic, the approximation with suppliers was still greater so that together it was possible to find solutions and reduce the impacts of the crisis. Several measures were adopted to support these partners. For this reason, matching orders to the new reality was carefully negotiated. Orders where there was already a commitment were maintained, and advances of funding guaranteed to suppliers at below market cost. Credit lines in support of partners were increased and primers and tutorial manuals produced as well as webinars with specialists for providing guidance on

procedures for accessing lines of credit and assistance in taking business-related decisions in the light of new measures involving labor, tax, and legal issues.

With respect to monitoring, the Company is committed to having 100% of its national and international resale chain with socio- environmental certification by the end of 2021, guaranteeing the comprehensive adoption of best practices that are widely legitimized. In this context in 2020, the Company improved the efficiency of its monitoring process with greater use of data for managing risk and focusing effort. Artificial intelligence and machine learning were introduced in the analysis of historical data of audits to understand the correlations between non-conformities and repeat events, highlighting the greatest potential risks. Through this and other measures by the end of 2020, 96.5% of the suppliers had been certified.

To maximize the potential for a positive impact on the textile chain, the Company also employs initiatives and programs to support the development of suppliers in Brazil. Some of these programs have a long history, one is the PMC (Continual Improvement Program), already in its eighth consecutive year, as well as the Productive Chain Program in partnership with Sebrae for the promotion of skills, in 2020, benefiting 136 suppliers. Again, through the Renner Excellence Program (PER), the Company aims at promoting and fostering development and innovation along the supplier chain, recognizing companies that stand out in Quality, Sustainability, Efficiency, Cooperation and Innovation. Following completion of the PER cycle, the first awards were made for the year.

II. ECOEFFICIENT MANAGEMENT

As part of its contribution to combatting climate change, the Company has set itself the target of a 20% reduction in absolute emissions of CO2 by 2021, in 2020 already achieving a reduction of 16% (preliminary data). With this in mind, it has been working on promoting energy efficiency and expanding the use of energy from renewable sources, among others. For ten years now, the Company has been a component of the B3’s Carbon Efficient Stock Index (ICO2) as well as publishing its greenhouse gas emissions inventory (GEE), the latter since 2014, being the recipient of the GHG Protocol program’s Gold Seal. Since 2015, Renner has been a carbon neutral Company with 100% of GHG emissions compensated relative to the inventory of the preceding year. In 2020, it also began to support the Science Based Targets initiative (SBTi), a global movement that includes companies on a clearly defined path in the direction of emissions reduction and in line with the target set by the Paris Climate Agreement.

With respect to energy consumption, all store lighting now uses LED lamps while approximately 130 units have their activation and consumption monitored remotely permitting the desired level of comfort and efficiency to be maintained. In addition, in recent years, the Company has continually promoted awareness and skills initiatives focused on the management of greenhouse gas initiatives with logistics services providers. Another objective which is being pursued is the expansion in the use of energy from renewable and low impact sources with the aim of achieving the public commitment of 75% of consumption using these sources by the end of 2021. As well as energy purchases on the free energy market, Renner has been investing in partnerships for the construction of solar energy farms to supply its stores. As a result, some 65% of the energy consumed in 2020 came from renewable sources.

Regarding to the eco-efficient stores, the Company has operations which have been developed using sustainable construction principles on the basis of LEED (Leadership in Energy and Environmental Design) certification requirements and is replicating the requirements of these sustainable units in its Construction and Modernization Manual for stores to be rolled out in the future.

III. ENGAGEMENT OF EMPLOYEES, COMMUNITIES AND CUSTOMERS

Lojas Renner believes it has an important responsibility with its customers for creating a business which is increasingly more sustainable, principally through information to its stakeholders on processes used in its products and their advantages, empowering their choices, and stimulating more sustainable consumption habits. With this in mind, in 2018, the Re Responsible Fashion seal was created for Renner’s products and in 2020, the YC Change seal for Youcom products, symbolizing a way of thinking and practicing sustainability and identifying the products, services and initiatives relative to the theme.

The Lojas Renner Institute has been responsible for the management of all the Company’s social investments in more than a decade of work with community organizations and leadership. In 2020, all financial resources available from the Institute, traditionally directed towards entrepreneurship and generation of employment and income for women in the fashion chain, plus the Company’s own resources, were allocated to giving assistance to the maximum number of people during the pandemic. Employees, partners, and the Institute itself have formed a major ecosystem of social collaboration for ramping up the potential for assistential initiatives to the communities and support for hospitals and medical teams and in this way creating the greatest value possible for society. A total of 1.7 million hospital masks and PPEs were produced and 130 tons of foodstuffs and items of personal hygiene donated. A total of R$ 5.1 million was invested in social actions.

As to the commitment to human rights, the Corporate Policy was published in 2020, establishing the conduct and values to be observed by all the Company’s stakeholders. In addition, a Due Diligence was undertaken resulting in a human rights violation risk matrix, which identifies priority risks, thus orientating the focus for the three most urgent themes.

Besides the Conformity Program, which covers the risk of violation of human rights along the international suppliers chain, and the Sustainability Programs for the productive chain and covering the risks to the environment in production, a multidisciplinary working group was mobilized to act on risks of discrimination in the case of employees and customers and in the combating of domestic violence. In addition to this squad, the “Plural” Diversity Program was created for promoting Diversity & Inclusion, which together with representative groups of the Company has built a diversity strategy with actions and targets to be achieved before the end of 2021.

To support these initiatives, the Company has associated with the following movements: IDBR (Identities of Brazil Institute), Companies Forum LGBTI+ and Business Coalition for the end of violence against women and girls.

IV. SUSTAINABLE PRODUCTS AND SERVICES

The Company understands that the road to Responsible Fashion necessarily involves construction of a supply of lower impact products and services. For this there must be the development and evolution of an entire chain towards more sustainable models from raw materials through processes to the life cycle of products and services with the ultimate objective being circularity.

In this process of construction, as already commented, this role is materialized in the form of the Re Responsible Fashion Seal and the YC Change, which identify products made from raw materials or processes with lower environmental impact and greater value added along the chain. In 2020, more than 75 million pieces were manufactured with the Re Responsible Fashion Seal and this volume accounted for 56.8% of the total output of products in the year, in line with the Company’s commitment of raising this percentage to 80% by year-end 2021. With respect to the target of reaching 100% of items made from certified cotton by year-end 2021, this percentage reached 79.9% of all cotton items in 2020.

Some important steps were taken towards introducing the circular economy in 2020 by including circularity characteristics in new units. In 2021, the first circular store in Brazil is to be unveiled, aligning circularity to digital transformation for creating a single experience for the customers. A partnership with Repassa was also begun to stimulate rational consumption and extend the useful life of apparel. Customers can ask for their free Shopping Bag for Good from participating stores for depositing their unwanted clothes for sale in the thrift store.

CORPORATE GOVERNANCE

In 2020, Renner completed 15 years as a widely held Main Corporate Governance Practices corporation, in 2005 being the first corporation in Brazil to have all its shares traded on B3, without a controlling shareholder. It • Novo Mercado of B3 – Brasil, Bolsa, Balcão is also 15 years since the inception of the Novo Mercado, the • 100% free float highest level of corporate governance on the Brazilian stock • Majority of the Board of Directors are independent (88%) exchange. The Company commemorated these two • Women on the Board of Directors (25%), on the Executive Board (40%) moments on July 1st with an innovative public event and one and on the Fiscal Council (33%) totally online in B3. • Board Administration and Management Committees

• Different executives as Chairman of the Board and CEO

In the Corporate Governance model adopted since then, the • Manual for Participation in Shareholders’ Meetings strategic guidelines are set by the Board of Directors, currently • Stock Options and Restricted Stock Plan with eight members, 88% of them independent. The Board has • Internal charter for Boards, Executive Board and Committees • Formal appraisal of Board of Directors and Executive Board the support of four committees: People, Sustainability, Strategic • Secretaries to the Boards, Executive Board and Committees and Auditing and Risk Management, the latter one being • Board of Directors and Committees Portal statutory. The Company also has a permanently installed Fiscal • Internal Audit and Compliance Council. • Whistle blowing channel run by an independent third party

• Various Corporate Policies In turn, the operational activities are the responsibility of the • Corporate Governance Secretary Executive Board, currently with five members and working according to guidelines set by the Board of Directors and having the support of certain management committees in the decision-making process: Executive, Loss Prevention, Real Estate, Corporate Ethics, Disclosure and Data Security. The Company also has non-statutory divisions aligned to the culture of opinion formation leaders of leaders, continuing the work of the formation and valorization of in-house talents as well as providing support for the Company’s growth.

Lojas Renner adheres to the best national and international practices for the efficient management of risks to the business, reinforcing the culture of ethics, transparency and responsible governance with a robust structure based on policies and processes. The Risks Area established in 2019, works closely with the business areas, giving consultative support to the identification, prevention and treatment of the main risks as well as promoting the areas’ awareness of a culture of preventive risk management. The main categories of risk which are monitored are operational, strategic, reputational, and socio environmental. The Company also has a dedicated structure in the area of Compliance, under the supervision of the Risks Area, directed to compliance with the General Data Protection Regulation (GDPR) and which has been working since 2018 on the necessary measures for adoption of best practice on the theme. In 2020, the project for adaptation to the dictates of the GDPR with important measures for guaranteeing privacy and safety and a structure for protecting data, was concluded.

The Company constantly reviews its Corporate Governance system, through which new practices are adopted and existing practices are fine tuned. In 2018, Lojas Renner was the first Brazilian corporation to publish the “Report on the Brazilian Code of Corporate Governance” (practice and explain method). In 2019 and 2020, the percentage compliance with the Code was 98.1% with just one item to be explained to the market.

With its focus on the value of gender diversity, Lojas Renner in line with its Managers’ Nomination Policy and with a view to maintaining the Company aligned to best international practices of governance, Lojas Renner has signed an instrument of adherence to the Women on Board (WOB), committing to maintain at least two female directors on its Board of Directors. The WOB is an independent initiative supported by UNO Women for recognizing, valorizing, and disseminating the existence of corporate environments with the presence of women with seats on Boards of Directors, demonstrating the benefits of such diversity to the business world and society.

Thanks to shareholder engagement, for the first time since the Company became the first Brazilian corporation in 2005, with a totally dispersed capital, an Extraordinary General Meeting was installed at the first call with the quorum of more than 2/3 of the capital stock. Shareholders at the EGM held on October 21, 2020 approved: (i) the election of a new alternate to the Fiscal

Council; (ii) changes to the Long-Term Incentive Plans, principally the term - which was increased from 5 to 10 years; and (iii) statutory amendments for updating corporate governance practices through various national and international practices as well as a re-reading of Law 6.404/76.

In relation to the dividends, during the year, shareholders were credited with R$ 240.8 million of Interest on Shareholders Equity, which will be complemented by a proposed annual dividend of R$ 30.7 million, to be approved by the Annual General Meeting of 2021. Consequently, total remuneration for 2020 is expected to reach R$ 271.5 million, equivalent to a dividend yield of 0.8% (based on the closing share price of December 30, 2020) and a payout of 25%, the same payout as distributed in 2019, and a function of the strategy for growth, the Company’s investment plan and in the light of the continuing pandemic.

As recognition of initiatives in favor of the ESG theme, the Company has continued to be a component of the 2020/2021 portfolio of the Dow Jones Sustainability World Index, the Corporate Sustainability Index (ISE) and the Carbon Efficient Index (ICO2) both B3 indices, as well as featuring first in the new S&P/B3 Brasil ESG index and listed among the 10 Brazilian leaders in ESG in the MSCI Brazil ESG Leaders Index. For the 10th consecutive year, the Company has submitted its data to the CDP Climate Change with its rating moving up to B last year and was also selected to comprise the new CDP Brasil – Climatic Resilience (ICDPR-70) Index.

SHARE PERFORMANCE Lojas Renner S.A.’s shares are traded on B3 – Brasil, Bolsa, Share Evolution LREN3 x Ibovespa Balcão, under the LREN3 symbol and in the form of ADRs on the US OTC market under the LRENY symbol. In 2020, due to +4.008% the Covid-19 pandemic and the ensuring impacts on the capital markets, LREN3’s shares reported a depreciation of 22.0% (adjusted for corporate events) in 2020 versus the IBOV Ibovespa’s appreciation of 2.9%. The Company reported a LREN3 market capitalization of R$ 34.7 billion as of December 30, 2020. During the year, the number of company shareholders increased by 107.5% from 57.4 thousand in December 2019 to 119.0 thousand in 2020, principally private individuals. In this +352% period, 7.6 million trades were transacted, involving 2,110.5

million shares with an average daily trading volume of R$

20 358.8 million. In the case of the ADR program, launched at

jul-05 jul-06 jul-08 jul-10 jul-11 jul-13 jul-14 jul-16 jul-18 jul-19

jul-07 jul-09 jul-12 jul-15 jul-17 jul-20

jan-06 jan-11 jan-14 jan-19

jan-07 jan-08 jan-09 jan-10 jan-12 jan-13 jan-15 jan-16 jan-17 jan-18 jan-20

dec- the end of 2017, a total of 7.5 million receipts had been issued at the end of 2020 against 1.9 million in December 2019.

MANAGEMENT OF PEOPLE

People are and always were a priority at the Company and in 2020 this became Employees even more apparent. Since the outbreak of Covid-19, the Company endeavored to preserve employment and committing not to terminate. Renner quickly placed 24,162 24,757 22,334 20,994 the administrative areas on a home working footing, expanding the practice 19,018 already introduced in 2019, and adapted the operations of the DC and Call Center teams, reinforcing safety measures. During the temporary closure of the stores, Renner had recourse to vacation time, the hours bank and also availed itself of Provisional Measure 936/2020 to adjust to the new working conditions.

20162017 2018 20192020

In addition, various initiatives were adopted to increase transparency and dialog Number of employees at the end of the year with the employees, such as intensification in the use of the internal social network and the promotion of ‘lives’ with executive officers as a means of reinforcing trust and health care and well-being of the teams. In spite of so many professional and personal challenges that arose from the onset of the pandemic, these and other measures were instrumental in ensuring the teams maintained a high level of engagement, measured through a specific survey run on a voluntary and anonymous basis. In 2020, engagement was rated at 89%, a higher level than for international fashion retailing as a whole.

Important improvements were made in attracting new talents with the use of artificial intelligence in recruitment, guaranteeing and helping to fine tune the selection process. Several actions were launched through the Circuit Program, bringing the Company closer to the national and international Education and Innovation ecosystems, through a continuous agenda of meetings with partners to explore innovative solutions to business problems, as well as an exchange of knowhow on new competencies and skills essential to the careers of the future, generating value for the sector and society. Altogether, more than 2,800 people have already been impacted by the Circuit, in challenges such as hackatons and marathons connected to the business strategy and several partnerships have been developed with Labs (laboratories), Universities and leading institutions.

To support the entire process of transformation at the Company, as well as the development of the fashion and lifestyle ecosystem, new areas have been created, for greater focus on the businesses. Realize now has an executive dedicated to the business as well as a focus on the digital agenda and on growth. An Agility area was structured for governance, management, and dissemination of agile methods in the Company. Data area was created, which with the Technology area will serve as important markers in the direction of the ecosystem, together with the Strategy and New Businesses Area, this giving traction to the agenda of partnerships, investments and acquisitions. The operational model was also revised and tribes and squads created for the execution of the initiative’s portfolio of the Lojas Renner ecosystem.

As to development, the competences model and the strategies provide guidance to the corporate plan, implemented by the Renner University (RU) through development paths, training, and preparation of the teams to meet the business challenges. In the vanguard of the digital transformation cycle of the business, the RU has been a critical instrument for accelerating the change

in mindset. In 2020, the year in which the RU celebrated its 20th year, the concept of learning was renewed, and important technological advances made through a new platform more modern, interactive, and collaborative, enhancing the network of learning experiences and connecting the team to the world’s best content in various formats such as games, virtual and increased reality, chatbots and Artificial Intelligence. So it was that in 2020, Lojas Renner was recognized as the Most Incredible Company in Corporate Education with the Incredible Places to Work Award.

ECONOMIC AND FINANCIAL PERFORMANCE

The following financial and operating information, except when indicated to the contrary is in accordance with the international norms of the International Financing Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (IASB). All variations shown here are calculated based on numbers in thousands of Reais, as well as the rounding. In accordance with the regulations in effect, as from 2019, expenses with leases, depreciation and interest reflect the effects of IFRS 16.

Highlights

Consolidated Information (R$ MM) 20202019 Var.

Net Revenue from Merchandise Sales 6,660.68,474.7-21.4% Growth in Same Store Sales -23.9%8.7% -

Gross Profit from Merchandise Sales 3,459.34,767.4-27.4% Gross Margin from Retailing Operation 51.9%56.3%-4.4p.p. Operating Expenses (SG&A)¹ (2,608.9)(2,736.8)-4.7%

SG&A as a % of Net Revenue from Merchandise Sales 39.2%32.3%6.9p.p. Ajusted EBITDA from Retailing Operation 1,108.51,561.8-29.0%

Ajusted EBITDA Margin from Retailing Operation 16.6%18.4%-1.8p.p. Financial Products Result 81.9391.4-79.1% Ajusted Total EBITDA (Retail + Financial Products) - Includes Leasing²1,190.41,953.2-39.1% Ajusted Total EBITDA Margin - Includes Leasing² 17.9%23.0%-5.1p.p. Ajusted Total EBITDA (Retail + Financial Products) - Excludes Leasing³1,661.22,388.8-30.5%

Ajusted Total EBITDA Margin - Excludes Leasing³ 24.9%28.2%-3.2p.p. Net Income 1,096.31,086.20.9% Net Margin 16.5%12.8%3.7p.p.

ROIC LTM 15.9%21.3%-5.4p.p. 1 To facilitate analysis, Depreciation and Amortization expenses including Lease Depreciation have been excluded from the above table. ² Total Adjusted EBITDA with the impact of Depreciation and Lease Financial Expenses. For the purposes of comparability with preceding periods, the Company is now reporting Adjusted EBITDA also for Depreciation and Leasing Financial Expenses with respect to the adoption of IFRS 16, given the similarity with cash flows in the leasing agreements. ³ Total Adjusted EBITDA without the impact of Depreciation and Leasing Financial Expenses with respect to the adoption of IFRS 16. The Company was successful in its legal action to exclude ICMS from the PIS and Cofins calculation base. As a result, a tax credit of R$ 784.6 million (R$ 742.5 million net of lawyers’ fees) was booked to Other Operating Income with respect to the principal amount as well as a further R$ 587.7 million (R$ 560.4 million net of taxes) with respect to interest on this amount and booked to the Financial Result. The updated total amount was R$ 1,372.3 million with a net effect of R$ 1,059.7 million on Net Income. Details in note 10. The Company amended the method of calculating the discount rate of lease assets pursuant to explanatory note number 3.6.1.1 and with this, the amounts of lease depreciation and interest were amended for 2019 and 2020, without significant impact.

Performance by Business

Businesses Breakdown 2020 2019 Var. 2020 2019 Var. 2020 2019 Var.

Number of Stores 393 388 5 113 114 -1 100 101 -1 Inaugurations7 34 -29-29- Selling Area (thousand m²) 709.9 683.7 3.8% 48.3 48.7 -0.9% 16.9 16.7 1.1% Net Revenue (R$ MM) 5,974.5 7,728.4 -22.7% 506.9 525.0 -3.5% 172.7 221.3 -22.0% Gross Margin 51.9% 56.4% -4.5p.p. 50.9% 51.5% -0.6p.p. 56.2% 61.3% -5.1p.p.

Ashua and the stores in Uruguay and Argentina are included under the Renner name. Closures: in 2020 there were 2 Renner, 3 Camicado and 3 Youcom. In 2019, there were 3 Camicado and 2 Youcom.

Net Revenue from Merchandise Sales

The year began favorably with good sales performances and healthy inventory until the middle of March. However, with the increased uncertainties as the Covid-19 pandemic worsened, the Company opted to temporarily close all its physical stores. At the end of April, it began a gradual process of reopening with a monthly increase in the number of units in operation. After reopening, the units operated with limitations in the number of days and hours of operations, access to fitting rooms and rules of social distancing. These restrictions plus the insecurity of the consumer, apprehensive as to frequenting public places, resulted in footfall below normal throughout the year, albeit with higher conversion rates and number of items per shopping bag.

As the situation with the pandemic improved in certain locations, Net Revenues from consumers began to return to the stores and with this there was an Merchandise Sales and SSS important increase in customer traffic, from September forwards, 8,474.7 returning to normal levels. This movement was particularly marked in some 7,485.4 regions such as the North and the Northeast where footfall had already 6,600.1 6,660.6 5,721.8 returned to normal. However, the increase in the number of infections at the year-end, again saw an increase in the number of restrictions and in some cases, the temporary closure of units, reducing the trend of 9.2% 7.4% 8.7% continual improvements experienced up to then. In this context, sales -0.2% performance during the year was significantly impacted, reaching R$ -23.9% 6,660.6 million, a reduction of 21.4% compared with 2019, and Same Store 2016 2017 2018 2019 2020 Sales -23.9%. Net Revenue (R$ MM) SSS - Same Store Sales Sales at Youcom were equally impacted by the temporary closure of the physical stores, totaling R$ 172.7 million, a decrease of 22.0%. At Camicado, Net Revenue was R$ 506.9 million, a decline of 3,5%, a much better performance than the Home Decor sector, mainly thanks to an adjustment in the product mix as well as improvements made to store productivity. These initiatives together with a good online performance, partially offset the effects of the temporary closures of physical units in the period. In addition, greater demand for home decor items also benefited performance as consumers began spending more time confined to their residences.

As to online business, following a period with an intentional reduction in sales at the end of March for the necessary adaptions to the operation, the Company began an intense ramping up of the digital channels, which showed strong growth of 126.0% in the year, with an important increase in traffic, numbers of active customers and principally, of new consumers. Also, a highlight during the year were digital sales at Camicado, reflecting increased customer engagement, in turn due to the greater focus on content and the developing omni initiatives.

Cost of Goods Sold (COGS) and Gross Profit from Retailing Operation

COGS reported a year-on-year reduction of 13.6%, less than the reduction in Net Revenue from Merchandise Sales. Consequently, Gross Profit and Gross Margin from Retailing Operation Gross Profit from the Retailing Operation was 27.4% lower, equivalent to a Margin of 51.9%, versus 56.3% in 2019. This again reflects the 4,767.4 temporary closing of the stores, generating higher levels of markdowns 4,228.0 3,677.2 3,459.3 during the year. The process of adjusting inventory began in April, 3,185.1 stores reopening with the offer of discounts, and thus there was a 55.7% 55.7% 56.5% 56.3% gradual and steady improvement in margins quarter-on-quarter. 51.9%

At Renner, Gross Margin was 4.5 p.p. lower than 2019. At Youcom, the reduction was as much as 5.1 p.p., the added impact of the period of 2016 2017 201820192020 ‘freezing’ for the changeover in ERP in 1H20. In turn, Camicado, Gross Profit (R$ MM) Gross Margin reported a reduction of just 0.6 p.p., reflecting improvements in commercial management and product mix which helped compensate for higher markdowns, the outcome of the period when stores were temporarily closed.

Operating Expenses

Selling, General and Administrative Expenses (SG&A) were 4.7% down 3.112,3 in 2019, the result of lower sales volumes as well as adjustments and Operating Expenses - SG&A renegotiations to adapt the operation, more particularly during the 2,775.0 2,736.8 2,608.9 period when stores were temporarily shut. 2,463.0 2,121.5 Selling Expenses totaled R$ 1,885.6 million, a decrease of 4.6% while General and Administrative Expenses were R$ 723.3 million, 5.0% lower than 2019. 37.1% 37.3% 37.1% 39.2% 32.3% Other Operating Results totaled R$ 726.6 million against a negative R$ 35.2 million in 2019. This increase is basically due to the recognition of 20162017 20182019 2020 R$ 742.5 million of principal, net of legal fees, following a successful SG&A (R$ MM) SG&A/Net Revenue from Merchandise sales (%) action to exclude ICMS from the PIS and Cofins calculation base (see details in explanatory note nº 10).

Adjusted EBITDA from Retailing Operation

For the purposes of comparability with preceding periods, the Company EBITDA and EBITDA Margin from Retailing Operation now reports EBITDA also adjusted for Depreciation and Financial 1,561.8 Expenses relative to the adoption of IFRS 16 since the cash flows 1,423.9 originating from the leasing agreements are similar. 1,087.8 1,144.2 1,108.5

Adjusted EBITDA from Retailing amounted to R$ 1,108.5 million in 2020, 19.0% 19.0% 29.0% lower than 2019. EBITDA Margin was 16.6%, versus 18.4% in 2019, a 17.3% 18.4% 16.6% reflection of reduced operational leverage, a function of sales volumes and a reduction in Gross Margin. This result also reflects the recognition of R$ 742.5 million in tax credits, already mentioned. Excluding this 2016 2017 201820192020 amount, EBITDA would have been R$ 366.0 million, equivalent to a EBITDA from Retail (R$ MM) EBITDA Margin Margin of 5.5%.

Financial Products Result

Financial Products Result 20202019 Var. (R$ MM) Financial Products Result Revenues, Net of Funding and Taxes854.31090.5-21.7% 391.4 349.4 Renner Card (Private Label) 246.9414.7 -40.5% 331.6

Co-branded Card Meu Cartão 607.5675.8 -10.1% 251.3 Credit Losses, Net of Recoveries(412.6)(381.0)8.3%

Renner Card (Private Label) (107.2)(168.5) -36.4% 18.8% 22.5% 19.7% 20.0% 81.9 Co-branded Card Meu Cartão (305.5)(212.5) 43.7% 6.9%

Operating Expenses (359.8)(318.1)13.1% 2016 2017 201820192020

Financial Products Result 81.9391.4-79.1% Financial Products Result (R$ MM) FP/Total EBITDA % of Company's Total Adjusted EBITDA 6.9%20.0%-13.1p. p.

As from 1Q20, Saque Rápido Revenues and Losses were incorporated under the Private Label. Credit Losses, Net of Recoveries include write-offs, provisioning complements/reversions and recovery of write-offs in the period.

The Financial Products Result amounted to R$ 81.9 million, versus R$ 391.4 million in 2019, largely due to lower Revenues generated.

The decline in Revenues is largely a reflection of lower portfolio levels and reflecting the period when stores were closed as well as the decline in the use of credit cards as a whole. Furthermore, discounts as a result of renegotiations, as well interest exemptions in the period when stores were closed and the reduction in interest rates also had an impact on performance. Important to mention that as portfolio volumes were replenished, there was a gradual improvement in Revenues for subsequent periods.

Net Losses were 8.3% higher, due to portfolio higher coverage levels at 15.6% against 12.2% in 2019, given the uncertainties surrounding the macroeconomic scenario, which occasioned a higher level of provisioning.

Operating Expenses increased 13.1%, reflecting more intensive collection activity and expenses related to digital initiatives at Realize.

Credit Portfolio Analysis

The reduction in the percentage of total overdues was principally a consequence of improved credit recovery in the case of Meu Cartão, more than offsetting the increase in the case of the Private Label, impacted by the writing off of assets over the 360 days as opposed to 180 previously. It is worth recalling that as from April 2019, transactions with the Private Label are now being booked in Realize’s accounts and as a result, in 2H20, principally, registered higher volumes more than 180 days overdue.

The level of Losses was slightly higher relative to the total portfolio, principally due to the increase in Meu Cartão, reflecting lower growth and higher coverage, adequate for the economic scenario of the period.

Total Portfolio Private Label - Renner Card Co Branded - Meu Cartão 3,443.8 3,517.3 21.6%

2,785.7 19.9% 18.6% 18.1% 17.6% 2,316.5 14.8% 13.8% 1,930.9 12.8% 16.8% 16.5% 15.9% 12.2% 11.6% 12.3% 19.6% 15.3% 9.2% 13.8% 11.3% 12.4% 9.3% 7.5% 13.1% 12.5% 13.0% 13.6% 7.4% 12.1% 10.3% 11.0% 10.1% 11.1% 11.7%

2016 2017 2018 2019 2020 20162017201820192020 20162017201820192020

Total Portfolio (R$ MM) Past Due over the Total Portfolio Past Due over the Portfolio Past Due over Total Portfolio Net Losses Over Portfolio Net Losses over Total Portfolio Proforma Past Due over Portfolio* Proforma Past Due over Total Portfolio* Net Losses Over Portfolio * For comparability purposes, pro-forma information relates to the portfolio for receivables up to 180 days.

Payment Conditions

The Renner Cards totaled 33.8 million units in December 2020 and Payment Conditions (%) represented a participation of 41.4% in merchandise sales versus 43.7% in 2019, mainly due to the reduction in the use of 0+8 installment finance 25.9% plan, reflecting customer attitudes with a lower propensity to purchase 29.1% 37.2% 37.5% on an interest-bearing installment basis and also more inclined in the 2020 2019 current context to effect cash payments.

4.2% 30.4% 6.2% The average ticket for the Renner Card was R$ 211.49 in 2020, flat in 29.5% relation to 2019. The average ticket for the Company was R$ 151.06, a decrease of 2.2%.

Total Adjusted EBITDA: Retailing + Financial Products

EBITDA Reconciliation 2020 2019 Var. (R$ MM) EBITDA and Total Adjusted EBITDA Margin Net Income 1,096.31,086.20.9% 2,388.8 ( + ) Income and Social Contribution Taxes 104.5405.8-74 .2%

( + ) Financial Result, Net (343.9)184.4 NA 1,953.2 1,773.3 ( + ) Depreciation and Amortization (*) 759.6661.814.8% 1,661.2 1,475.8 1,339.1 Total EBITDA 1,616.52,338.1-30.9% 1,190.4 ( + ) Stock Option Plan 22.821.18.3% 28.2% 24.9% ( + ) Statutory Participation 1.45.9-76.7% 23.4% 22.4% 23.7% 23.0% ( + ) Result on Write-Off and Provision for Impairment of Fixed Assets 20.523.8-13.6% 17.9%

Total Adjusted EBITDA - Excludes Leasing¹ 1,661.22,388.8-30.5% 2016 20172018 2019 2020 ( - ) Depreciation for Leasing (IFRS16) (*) (335.0)(300.8)11.4% Total EBITDA (R$ MM) - includes LeasingTotal EBITDA (R$ MM) - excludes L easing

( - ) Financial Expenses for Leasing (IFRS16) (**) (135. 8)(134.8)0.7% EBITDA Margin (%) - includes Leasing EBITDA Margin (%) - excludes Leasing Total Adjusted EBITDA - Includes Leasing² 1,190.41,953.2-39.1%

Total Adjusted EBITDA Margin - Includes Leasing² 17.9%2 3.0%-5.1p.p.

Pursuant to Article 4, CVM Instruction 527, the Company has chosen to show the Adjusted EBITDA as in the above table in order to provide information which best reflects gross operational cash generation from its activities. 1 Total Adjusted EBITDA without the impact of Depreciation and Lease Financial Expenses with respect to the adoption of IFRS 16. ² For the purposes of comparability with preceding periods, the Company is now reporting EBITDA also adjusted for Depreciation and Financial Expenses relative to the adoption of IFRS 16, given the similarity with cash flows in the rental agreements. * Depreciation for Leasing is presented net of PIS/COFINS effects, whose amounts are R$ 31.4MM in 12M20 and R$ 33.0MM in 12M19. ** Interest on Lease is presented net of PIS/COFINS, whose amounts are R$ 12.3MM in 12M20 and R$ 6.1MM in 12M19. The values of Interest on Lease, shown in Cash Flow Statement, in the line "Interest and expense on loans and lease", totaled R$ 90.8MM in 12M20 and R$ 67.5MM in 12M19.

For the purposes of comparison with previous periods, the Company now reports EBITDA adjusted also for Depreciation and Financial Expenses following the adoption of IFRS 16, given the similarity with cash flows from leasing agreements. Without this adjustment, EBITDA would have been R$ 1,661.2 million, equivalent to a Margin of 24.9%.

Total Adjusted EBITDA was R$ 1,190.4 million, equivalent to a Margin of 17.9%, a year-on-year reduction. This performance was the consequence of the lower operational result from retailing as well as the reduced Financial Products Result and also reflects recognition of the tax credit, mentioned above. Excluding this amount, EBITDA would have been R$ 448.0 million, corresponding to a Margin of 6.7%.

Financial Result, Net

The Financial Result Net was positive at R$ 343.9 million, basically, due to interest on tax credits of R$ 560.4 million booked in the period. Excluding this amount, the result would have been negative at R$ 216.5 million versus R$ 184.4 million also negative in 2019. This result was mainly due to the higher Interest on Loans, Financing and Swap, given the higher level of indebtedness throughout 2020, as well as the increase in negative Monetary Restatement due to of foreign trade payment flows and the execution of an exchange rate hedge.

Free Cash Flow

Cash Flow 20202019 Var. The Operating Free Cash Flow had positive effect of R$ (R$ MM) 1,302.9 million, due to the claw back of credits following

Total Adjusted EBITDA 1,190.4 1,953.2 (762.8) the successful PIS and Cofins action. This amount was neutralized by the increase on the Taxes line. (+/-) Income and Social Contribution Taxes/Others 222.7 (396.2) 618.9

Operating Cash Flow 1,413.11,557.0 (143.9) Thus, the lower generation of Free Cash Flow was due mainly to the lower Adjusted EBITDA in the period. (+/-) Changes in Working Capital (875.6) (213.0) (662.6) Accounts Receivable 14.3 (657.2) 671.4 Inventories (257.2) (14.2) (243.0) Suppliers 418.6 55.9 362.7 Taxes (1,313.3) (15.5) (1,297.8)

Other Accounts Receivable/Payable 261.9 417.9 (156.0)

(-) Capex (544.0) (751.5) 207.6 (=) Free Cash Flow (6.5) 592.5 (599.0)

Debt/Cash and Cash Equivalents Net

Net Debt Dec.20Dec.19 (R$ MM) ] Net Debt and Net Debt/EBITDA Borrowings and Financing (2,623.0) (1,153.7) 909.0 Current (1,077.1)(709.0) 712.6 659.8 Noncurrent (1,545.9)(444.6) 0.68x 505.3 0.60x Credit Operations to Customers Financing (762.0) (491.4) 0.45x Current (341.4)(185.0) 0.28x 272.7 0.14x Noncurrent (420.6)(306.4) Gross Debt (3,385.0) (1,645.0) Dec.16 Dec.17 Dec.18 Dec.19 Dec.20

Cash and Cash Equivalents and Financial Investments2,672.4 1,372.3 Net Debt (R$ MM) Net Debt/EBITDA LTM (x) Net Debt (712.6)(272.7) Net Debt / Tot al Adjust ed EBITDA (LTM) 0.60x0.14x

Operational Financing of Credit to the Client for financing the Financial Products’ portfolios and their variation is linked to the financial volumes of these products. The expenses for debt servicing related to capital management are booked in the Financial Result, Net. The costs of Operating Financing of Credit to the Client which is linked to Financial Products are reflected in the Operating Result.

As of December 31, 2020, the Company reported Net Debt of R$ 712.6 million, an increase of 161.3% relative to the position for the same period in 2019 due to, especially, the lower operating cash generation in the period.

Net Income Net Income and Net Margin

1,086.2 1,096.3 Net Income totaled R$ 1,096.3 million, reporting a slight growth of 0.9% 1,020.1 over 2019, equivalent to a Margin of 16.5% versus 12.8% in the preceding 732.7 year, thanks to the claw back of the tax credit. Excluding this non- 625.1 recurring item, the net income figure would have been R$ 36.6 million and a reflection of lower Total EBITDA during the period as well as 16.5% increased expenses with depreciation, reflecting fixed assets, and 10.9% 11.1% 13.6% 12.8% investments made in previous periods. 2016 2017 201820192020 Net Income (R$ MM) Net Margin

Investments

Capex

751.5

610.4 550.4 544.0 512.6

9.0% 8.3% 8.2% 8.9% 8.2%

2016 2017 2018 2019 2020

CAPEX (R$ MM) CAPEX/Net Revenue from Merchandise Sales

In 2020, investments in assets amounted to R$ 544.0 million. Of this amount, 48.8% was invested in Technology Systems and Equipment and 24.8% at the Distribution Centers, namely the construction of the new São Paulo DC. An additional 17.7% was spent on the rollout of 11 new stores: 7 Renner, 2 Camicado and 2 Youcom. The remaining 8.7% was allocated to modernization work on units and others.

INDEPENDENT AUDITORS

Renner's policy with its independent auditors with respect to the provision of services not related to the external audit, rests on principles that preserve the auditor’s independence. These principles are based on the fact that auditors should not audit their own work, perform management functions, or represent their client. During the fiscal year ending December 31, 2020, the Company’s independent auditors, Ernst e Young Auditores Independentes, were responsible for examining the financial statements and preparing the assurance report to the Company’s Annual Report. The amount of fees payable to the independent auditors in the fiscal year 2020 was R$ 1,327.9 thousand, which R$ 276 thousand refer to supporting services of construction regularization in the processes of new stores opening, homologation of suppliers and international trading advisory.

AWARDS AND RECOGNITIONS

During 2020, in recognition of its practices in different areas of the business, Lojas Renner featured prominently in several awards and rankings by different institutions specialized in their fields of activity. These distinctions contribute to the strengthening of the brand and engagement of the teams. Below is a list with the main recognitions:

The Best of Dinheiro – 1st place in the Retail category Istoé Dinheiro Real Black Friday – Winner in the Fashion and Accessories category Proxy Media Champions of Innovation – 1st place in the Commerce, Wholesale and Retail sector Amanhã Magazine Dow Jones Sustainability World Index – 8th place in the Retail sector in the world RobecoSam Corporate Sustainability Index (ISE) – component of the portfolio for the 7th consecutive year B3 – Brasil, Bolsa, Balcão Most Incredible Places to Work – 1st place in the Corporate Education category FIA/UOL Most Valuable Brazilian Brands – 11th place in the overall ranking Interbrand Brands of Who Decides – 1st place in the Women’s Fashion category Jornal do Comércio Best of E-commerce – Most loved store in the Fashion and Accessories category Ebit Best CEO, Best CFO, Best IR Professional, Best IR Team, Best IR Site, Best Investor Day, Best in ESG Institutional Investor metrics and Best IR Program for Retail in Latin America – 2nd place in these categories Magazine Finanças Mais Award – 1st place for Realize CFI in Financial Institution category Estadão and Austing Rating ibest Award – 2nd place (popular jury) in the Fashion E-commerce category iBest Women in Leadership Award – Highlight in Retail category Valor Econômico Reclame Aqui Award – 2nd place in the Fashion and Apparel category Reclame Aqui Top of Mind – 1st place in the Clothing Stores Network Amanhã Magazine Transparency Trophy – Listed among winners with Net Revenues of more than R$ 8 billion ANEFAC S&P/B3 Brasil ESG – 1st place in the portfolio’s debut B3 Valor 1000 – 1st place in the Commerce Retailer category Valor Econômico

OUTLOOK

The year of 2021 dawns with continuing health-related and economic challenges. In this context, the Company believes that brands with meaning and a clear value proposal generate competitive advantages and create conditions for increasing market share, irrespective of the economic environment. Last year, the Company learnt, relearnt, and transformed itself and it is in the light of this capacity to adapt that it believes it is prepared to meet new challenges in this new year.

Hence, the Company continues committed to its long-term projects and the sustainability of the businesses. For 2021, R$ 1,100.0 million in investments are programmed according to the proposal to be presented to the shareholders. This amount contemplates the continuing store expansion plan with the opening of between 20 and 30 Renner stores, from 5 to 10 units for Camicado, 5-10 for Youcom and about 5 in the case of Ashua. Important investments will also be made in logistics for the construction of the new São Paulo DC, as well as in the acceleration of digital transformation. Additionally, the Company remains alert to new possibilities for executing its strategy through a combination of the businesses and development of the fashion and lifestyle ecosystem.

AKNOWLEDGEMENTS

Lojas Renner wishes to extend its special thanks to the employees that continued engaged despite so many challenges, not only in relation to the business but also in their own personal lives; to the suppliers that remained committed and permitted the conducting of the operation in safety; to the shareholders, who supported this trajectory; and to the customers that remained loyal to the Company’s brands.

Porto Alegre, February 11, 2021

SOCIAL BALANCE SHEET Lojas Renner S.A. and subsidiaries For the years ended December 31, 2020 and 2019 (All amounts in thousands of Reais)

1 – Calculation base 2020 2019 Net revenue (NR) 7,537,180 9,588,437 Operating income (expenses) (RO) - Restated (*) 856,879 1,676,377 Gross payroll (GP) 841,085 894,054 Total value added (TVA) - Restated (*) 4,539,776 5,589,674

2 – Internal social indicators 2020 2019 R$ thou % on GP % on NR % on R$ thou % on GP % on NR % on TVA TVA Food 51,016 6.1% 0.7% 1.1% 64,162 7.2% 0.7% 1.2% Compulsory social charges 268,998 32.0% 3.6% 5.9% 306,610 34.3% 3.2% 5.5% Health 55,000 6.5% 0.7% 1.2% 55,187 6.2% 0.6% 1.0% Safety and labor medicine 2,969 0.4% 0.0% 0.1% 2,924 0.3% 0.0% 0.1% Training and professional 462 0.1% 0.0% 0.0% 813 0.1% 0.0% 0.0% development Daycare or child-care allowance 955 0.1% 0.0% 0.0% 1,006 0.1% 0.0% 0.0% Employee profit sharing 22,526 2.7% 0.3% 0.5% 96,752 10.8% 1.0% 1.7% Transportation 29,812 3.5% 0.4% 0.7% 37,001 4.1% 0.4% 0.7% Other 27,516 3.3% 0.4% 0.6% 25,829 2.9% 0.3% 0.5% Total – Internal social indicators 459,254 54.6% 6.1% 10.1% 590,284 66.0% 6.2% 10.6%

3 – External social indicators 2020 2019 R$ thou % on GP % on % on TVA R$ thou % on % on % on NR GP NR TVA Other (Lojas Renner Institute) 8,243 1.0% 0.1% 0.2% 9,907 1.1% 0.1% 0.2% Total contributions to society 8,243 1.0% 0.1% 0.2% 9,907 1.1% 0.1% 0.2% Taxes (excluding social charges) 1,539,082 183.0% 20.4% 33.9% 2,375,380 265.7% 24.8% 42.5% Total – External social indicators 1,547,325 184.0% 20.5% 34.1% 2,385,287 266.8% 24.9% 42.7%

4 – Environmental indicators 2020 2019 R$ % on GP % on NR % on R$ % on GP % on NR % on thou TVA thou TVA 4.1 Investments relating to production/operation of the Company Energy preservation 914 0.1% 0.0% 0.0% 237 0.0% 0.0% 0.0% Investments in environmental offset actions 1,151 0.1% 0.0% 0.0% 323 0.0% 0.0% 0.0% (**) Total investments relating to 2,065 0.2% 0.0% 0.0% 560 0.0% 0.0% 0.0% production/operation of the Company (**) The modification is due to the change of calculation methodology for the indicator, that previously considered only investment in emissions compensation and now includes other compensation investments.

2020 2019

Concerning the establishment of annual goals for ( ) Has no goals (x) Has no goals minimizing waste and consumption in general in ( ) Complies from 0% to 50% ( ) Complies from 0% to 50% production/operation to increase efficiency in use ( ) Complies from 51% to 75% ( ) Complies from 51% to 75% of natural resources, the Company: (x) Complies from 76% to 100% ( ) Complies from 76% to 100%

5 – Personnel indicators 2020 2019 In units In units Number of employees at year end 24,757 24,162 Number of onboarding professionals in the year 8,212 12,216 Number of terminated employees in the year 7,617 10,388 Number of outsourced professionals ND ND Number of interns 58 81 Number of employees per age range: Up to 29 y.o. 14,255 14,229 30 - 49 y.o. 9,565 9,055

50 y.o. or older 937 878 Gross compensation segregated into: Employees 789,106 757,939 Officers and directors 21,275 18,503 Number of employees per educational level*: Illiterate 2 2 Primary school 552 616 Secondary/technical school 19,560 19,361 College or univeristy and graduate school 3,837 3,357 Not informed 806 826 Education levels are collected when the employee is hired and there is no continuous update flow. Thus, the data presented does not reflect the updated level of our entire staff. Number of women working in the Company 16,041 15,718 Percentage of women in leadership positions 64.8% 65.1% Number of men working in the Company 8,716 8,444 Percentage of men in leadership positions 35.3% 34.9% Number of black men (women) working in the Company (***) 6,783 7,510 Percentage of black men (women) in leadership positions 27.4% 31.1% Gross compensation segregated into: (***) We add the number of blacks adding blacks + browns. Employees 789,106 757,939 Officers and directors 21,275 18,503 Difference between the lowest salary paid by the company and the There are no There are no minimum wage (federal or regional) differences differences

6 – Significant information on the exercise of corporate citizenship 2020 2019 Total number of work-related accidents 48 79

The Company's social and environmental projects ( ) Directors ( ) Directors were developed by: ( ) Directors and managers ( ) Directors and managers (x) All employees (x) All employees

The safety and health standards in the workplace ( ) Directors ( ) Directors were defined by: (x) Directors and managers (x) Directors and managers ( ) All employees ( ) All employees ( ) Everyone + CIPA ( ) Everyone + CIPA

As to the employees' labor union freedom, the right ( ) does not get involved ( ) does not get involved to collection barganing and internal ( ) follows OIT rules ( ) follows OIT rules representation, the Company: (X) encourages and follows OIT (X) encourages and follows OIT

The private pension plan comprises: We have no private pension plan. We have no private pension plan.

Profit sharing comprises: ( ) Directors ( ) Directors ( ) Directors and managers ( ) Directors and managers (x) All employees (x) All employees

In selecting suppliers, the same ethical and social ( ) Are not considered ( ) Are not considered and environmental responsibility standards ( ) Are suggested ( ) Are suggested adopted by the Company: (x) Are required (x) Are required

As to participation of employees in volunteer work ( ) does not get involved ( ) does not get involved programs, the Company: ( ) supports these programs ( ) supports these programs (x) organizes and encourages (x) organizes and encourages these programs these programs

2020 2019 Distribution of value added (DVA): R$ thou % on total R$ thou % on total Government 1,808,080 39.8% 2,681,990 48.0% Employees 1,099,119 24.2% 1,259,051 22.5% Shareholders 271,516 6.0% 549,546 9.8% Third parties 536,308 11.8% 562,432 10.1% Retained 824,753 18.2% 536,655 9.6%

ATTACHMENT II MANAGEMENT’S COMMENTS ON THE CORPORATION’S FINANCIAL CONDITION

10.1 Officers shall comment about: a. overall financial and equity conditions

In December 31, 2020, the Company net debt was R$ 712.6 million, an increase of 161.3% in relation to the same period of the previous year, as consequence, mainly, of a decrease of its cash generation in the period.

In 2019, the Company closed the fiscal year with net debt of R$ 272.7 million, considering financial services operations, which are classified as operational. Cash and cash equivalents and financial investments at the end of the fiscal year amounted to R$ 1,372.3 million, a reduction of 0.9% in relation to R$ 1,384.4 million on December 31, 2018.

In 2018, the Company closed the fiscal year with net debt of R$ 505.3 million, considering financial services operations, which are classified as operational. Cash and cash equivalents at the end of the fiscal year amounted to R$ 1,384.4 million, an increase of 21.2% in relation to R$ 1,142.2 million on December 31, 2017, as consequence, mainly, of an increase of its cash generation from operational activities.

The Company’s net debt is shown in the following table together with the net debt/EBITDA ratio for 2020 compared with years 2019 and 2018.

Net Debt (R$ Millions) 12/31/2020 12/31/2019 12/31/2018 Borrowings and financing (2,623) (1,154) (1,038) Current (1,077) (709) (711) Non-current (1,546) (445) (327) Operational financing (762) (491) (852) Current (341) (185) (713) Non-current (421) (306) (139) Cash and cash equivalents and financial investments 2,672 1,372 1,384 Net Debt (713) (273) (505) Net Debt / Total Adjusted EBITDA (12M) 0.60x 0.14x 0.28x

On December 31, 2020, the Company’s current liquidity was 1.6x, represented by the division of current assets and current liabilities (1.4x on December 31, 2019). The quick ratio which measures how much the Company has in cash, cash equivalents and liquidity financial investments in relation to the current liabilities, was 0.5x on December 31, 2020 (0.3x on December 31, 2019 and 2018). b. capital structure

Company’s Net Equity on December 31st, 2020, 2019 and 2018 totaled, respectively, R$ 5,501.3 million, R$ 4,704.6 million and R$ 3,954.5 million, demonstrating a path of constant growth, compatible with the results generated during this period.

As of December 31, 2020, loans and financings reached R$ 2,622.9 million (R$ 1,153.7 million on December 31st, 2019 and R$ 1,038.1 million on December 31st, 2018), being R$ 1,419.0 million related to debentures emissions, R$ 553.1 to working capital (Law 4,131) and R$ 650.8 million to working capital (CCB). The abovementioned figures do not include the positions of financing tied to the operation of the activity of financial services, on totaled amount of R$ 762.0 million on December 31 2020, classified as operational (R$ 491.4 million in 2019 and R$ 851.6 million in 2018).

The composition of the Company’s capital structure at the end of financial year 2020, 2019 and 2018 is following below:

(R$ Millions) 12/31/2020 AV 12/31/2019 AV 12/31/2018 AV Liability (Current and Non-current) 9,141.3 62.4% 6,861.9 59.4% 4,866.5 55.2% Equity capital 5,501.3 37.6% 4,691.0 40.6% 3,954.5 44.8% Total (liability + Equity Capital) 14,642.6 100.0% 11,552.9 100.0% 8,821.0 100.0%

There were no significant changes in the Company's capital structure over the last three years. We highlight only the the adoption of the new accounting standard IFRS 16 / CPC 06 (R2) Lease, in 2019, which reflected in the increase of both the Company's liabilities and assets. 37

c. payment ability related to financial obligations assumed

The Executive Board understands that the Company’s liquidity level, associated to its cash free generation and the sources available for financing either via debt or capital increase, are compatible with its investments, expenses, debts and other values to be paid within next years.

Based on the cash cycle of retail operations and the minimum capital required to guarantee credit operations, the Company manages its cash and cash equivalents by establishing a strategic minimum cash amount.

Management monitors continuously forecasts of the Company’s liquidity requirements, considering the debt financing plans, to ensure that it has sufficient cash to meet operating requirement. The global limits granted to the Company in its available committed credit lines, provides enough free space, without generating a risk of exceeding these limits or breaching loan covenants in loan agreements. These forecasts take into account the Company’s debt financing plans.

The Company’s solid balance sheet, its long relationship with important financial institutions and the capital markets, ensure very favorable access to funding via debt instruments or even the issue of new shares for increasing capital, if the case.

The balance of net indebtedness is a consequence of the capital management decisions and the results of the net charges of these positions are reflected in the financial results.

The other liabilities with the financial system refer to operating funding, which costs are charged to operating results and most of which is directly linked to the financing of the receivables from financial products. The net indebtedness, including operational financing, reflects the Company’s total exposure to the obligations contracted in the financial system. d. financing sources for working capital and for investments in non-current assets used

The Company usually uses its own capital for financing its activities. However in this atypical year, with the impacts arising from the Covid-19 pandemic, the Company has intensified the raising of third party loans and financing for reinforcing its working capital and maintaining the level of its strategic minimum cash position, notwithstanding, still reporting reduced leverage when compared to its net equity as well as compared to its cash position. As of December 31, 2020, the Company reported net debt, including operational financing, of R$ 712.6 million (R$ 272,7 million as of December 31, 2019 and R$ 505,3 million as at December 31, 2018), not envisaging any problem of liquidity in the short and medium term.

The principal objective of funding was to reinforce the working capital to ensure the maintenance of the strategic minimum cash policy to support the organic growth of the Company, allocated on the opening of new stores, refurbishment of existing stores, important investments in logistics, for example new the construction of the new distribution center located at Cabreúva - SP, as acceleration of digital transformation, among other investments. e. financing sources for working capital and for investments in non-current assets intended to use to cover liquidity deficiencies.

Our projections for the next 5 years indicate that due to the investment plan that will be implemented, added to maintenance of the current dividends policy, complementary financing may be needed.

Cash gross generation, represented through Adjusted EBITDA, of R$ 1,190.4 million as of December 31st, 2020, of R$ 1,978.1 million as of December 31st, 2019 and of R$ 1,773.3 million as of December 31st, 2018, associated to an efficient working capital management, has been one of the main sources that allowed us to undertake the expansion plan. Such generation, associated to issuing of debts and financing of working capital (debentures law 4,131 and CCB) carried out in the last years, are illustrated by evolution of Company’s net debt end of the latest years: R$ 712.6 million as of December 31st, 2020, R$ 272,7 million as of December 31st, 2019 and R$ 505.3 million as of December 31st, 2018.

Considering a possible scenario of liquidity deficiency, sources of finance which could be used by the Company would include funding from the local capital markets, such as the issue of debentures, issuance of new shares, credit line via Resolution 4,131, issuance of bank credit notes (CCB), Northeast Constitutional Financing Fund (FNE), projects and studies Financing Fund (FINEP) and development banks, such as the Federal Government Development Bank – BNDES and financing of working capital from financial institutions in the market.

Given that the Company has historically distributed profits at levels higher than the legal minimum, other possible sources of finance in the event of a credit squeeze would be through the retention of a larger percentage of the profits, or through a primary share issue.

f. Indebtedness levels and the characteristics of such debts, further describing: (i) relevant loan and financing agreements; (ii) other long-term relations with financial institutions; (iii) degree of subordination among debts; (iv) eventual restrictions imposed to issuer, especially regarding indebtedness limits and new debts acquisition, distribution of dividends, disposal of assets, new securities issuance and sale of corporate control, and if the company has been fulfill it as well.

Company’s solid equity position and its long relation with important financial institutions and with the capital market guarantee conditions to comfortably raise funds with the financial institutions or directly by the capital market.

Loans, financing and debentures Loans and financings position of the Company is the following (R$ million) for the years 2020, 2019 and 2018:

Consolidated Descriptions Weighted annual rates Maturity 12/31/2020 12/31/2019 12/31/2018 National currency Debentures 5th Issuance – 2nd series (i) - - - - 40.2 Debentures 7th Issuance - single series (i) - - - 306.5 307.8 Debentures 8th Issuance - single series (i) - - - - 206.4 Debentures 9th Issuance - single series (i) 103.9% do CDI 10/10/2022 401.6 404.5 - Debentures 10th Issuance - single series (i) CDI + 2.96% 04/13/2021 518.9 - - Debentures 11th Issuance - 1ª series (i) CDI + 3.00% 05/05/2022 302.3 - - Debentures 11th Issuance - 2ª series (i) CDI + 3.04% 11/05/2022 201.4 - - Debentures - Structuring costs - - (5.2) (0.0) (0.4) (+/-) swap - debentures - - - - (1.0) Northeast Fund - FNE - - - 9.2 30.2 BNDES - - - 5.1 13.2 Working Capital – guaranteed account - - - 51.4 16.4 Working Capital - law 4,131 (ii) CDI + 3.28% 03/24/2021 313.7 - - Working Capital - CCB (ii) CDI + 2.65% 07/07/2022 153.4 - - Working Capital - CCB (ii) 148.0% do CDI 11/25/2022 100.0 - - Working Capital - CCB (ii) 140.0% do CDI 11/25/2022 401.0 - - Working Capital - Structuring costs - - (3.6) - - Foreign currency - - - Working Capital - - - - 12.2 Working Capital - law 4,131 - - - - 459.0 Working Capital - law 4,131 - - - 101.0 - Working Capital - law 4,131 - - - 172.8 - Working Capital - law 4,131 (ii) US$ + 2.57% 01/27/2021 39.6 - - Working Capital - law 4,131 (ii) US$ + 3.70% 01/07/2021 55.1 43.1 - Working Capital - law 4,131 (ii) US$ + 0.76% 01/22/2021 208.0 - - Working Capital - law 4,131 - - - 61.5 - (+/-) swap – working capital - - - - (45.9) (+/-) swap - working capital - - - (5.5) - (+/-) swap - working capital - - - 7.7 - (+/-) swap - working capital (iii) 108.6% CDI 01/27/2021 (7.4) - - (+/-) swap - working capital (iii) 106.95% CDI 01/07/2021 (15.7) (3.3) - (+/-) swap - working capital (iii) 112.0% CDI 01/22/2021 (40.2) - - (+/-) swap - working capital - - - (0.3) - Total 2,622.9 1,153.7 1,038.1

(i) Funds obtained were intended to maintain the minimum strategic cash level.

(ii) The Company entered into contracts of secured account, modality of Law 4131 Bacen and Bank Credit Notes (Cédula de Crédito Bancário - CCB) to reinforce working capital and maintenance of the strategic minimum cash.

(iii) Swap transactions in foreign currency (Law 4.131) are hedging against foreign exchange rate.

The amounts for debenture issues are classified as unsecured debt, carrying no real guarantee. 39

The Management continuously monitors the forecasts of liquidity requirements considering the debt finance plans, and quarterly follow-ups of financial and non-financial indicators contractually required in the loans, the Company confirms compliance with the contractual assumptions established. The synthesis of financial indicators (Covenants) and non-financial set forth in such operation, is the following:

Financial

InstrumentIssue1st Indicator 2nd Indicator

9th issue of debentures MAR 18 2019

11th issue of debentures MAY 08 2020

CCB Borrowing MAY 14 2020 ≥ 2,0 CCB Borrowing SEP 09 2020 ≤ 3,0

Borrowing 4.131 JAN 09 2019

Borrowing 4.131 JAN 27 2020

Non-Financial

• Present Standardized Financial Statements – • Comply with environmental and labor • Adopt policies and procedures to comply with DFP w ith the opinion of the Independent legislation (health and safety, not using child the anti-corruption laws, pursuant to decree Auditors up to three months after the end of labor or similar to slave labor and combating 8.420 of March 18, 2015. each fiscal year, or five business days after its sex ual ex ploitation). disclosure.

Financing – financial service operations (R$ million)

Weighted Consolidated avarage charges - % Maturity 12/31/2020 12/31/2019 12/31/2018

Credit sales - - - - 97.9

Secured Account - - - 37.8 1.2

Vendor - - - - 29.3

Interbank Deposit Certificates (i) 210.0% do CDI 04/2021 51.6 - -

Interbank Deposit Certificates (i) CDI + 3.5% 04/2021 103.8 - -

Interbank Deposit Certificates (i) 181.0% do CDI 03/2021 51.3 - -

Interbank Deposit Certificates (i) 209.0% do CDI 03/2021 51.9 - -

Interbank Deposit Certificates (i) 240.0% do CDI 05/2021 10.3 - -

Financial bills (ii) 104.1% do CDI 08/2022 315.2 306.4 160.8

Bank Credit Notes (iii) CDI + 3.5% 05/2022 31.1 - -

Bank Credit Notes (iii) 160.00% do CDI 09/2022 20.2 - -

Interbank Deposit Certificates (iii) 130.74% do CDI 06/2021 72.1 - -

Interbank Deposit Certificates (iii) 137.71% do CDI 06/2022 54.5 - -

Working capital - Law 4131 Bacen - - - 142.8 131.8

(+/-) swap - working capital - - - 4.4 7.2

Senior Quotas – FIDC Lojas Renner - - - - 424

Structuring cost - FIDC Lojas Renner - - - - (0.7)

Total 762.0 491.4 851.6

i. The Company through its indirect subsidiary Realize CFI issued Interbank Deposit Certificates to the term of 1 year. These funds aim at reinforcing minimum cash and supporting the ordinary course of business.

ii. The Company through its indirect subsidiary Realize CFI issued Financial bills on August 2019 with the term of 3 years to private distribution, to finance operations and the ordinary course of business.

iii. The indirect subsidiary Realize CFI entered into contract of working capital CCB (Bank Credit Notes) with the bank BOCOM BBM with the term of 2 years, to be used in the financing of operations and ordinary course of business, with the Parent Company as guarantor.

iv. The indirect subsidiary Realize CFI issued Interbank Deposit Certificates with XP Investimentos with the term of, respectively, 1 and 2 years. These funds aim to finance operations and the ordinary course of business. g. limits of use of financings already contracted and already used

The Company usually uses the capital market and long term lines to finance its operations and support the investment plan, with limit approvals being carried out for each operation, however, for some of its subsidiaries, it has available with Banco Bradesco S.A. working capital lines in the amount of R$ 95.0 million, with no contracted value as December 31, 2020, in addition of approved values in Uruguay and Argentina in the total amount of 45.0 million. h. significant changes in each item of financial statements

Lojas Renner S.A. and Subsidiaries Balance sheets Identified on December 31 2020, 2019 and 2018 (In millions of reais)

Consolidated 12/31/2020 12/31/2019 12/31/2018 Assets Current Assets Cash and cash equivalents 2,066.7 981.0 944.7 Financial investments 605.6 391.3 439.7 Accounts receivable 3,811.7 3,826.0 3,162.7 Inventories 1,381.7 1,124.5 1,110.3 Recoverable taxes 962.0 258.4 208.8 Derivative financial instruments 5.4 4.4 10.9 Other assets 63.7 70.7 53.3 Total current assets 8,896.8 6,656.2 5,930.3 Non-current assets Long-term assets Recoverable taxes 661.1 73.3 78.3 Deferred income tax and social contribution 276.9 214.5 153.5 Other assets 12.9 16.2 29.4 Total long-term assets 950.9 304.1 261.2 Fixed assets 2,154.2 2,173.7 1,994.4 Right of use 1,700.1 1,634.7 0.0 Intangible assets 940.6 784.2 635.1 Total non-current assets 5,745.8 4,896.7 2,890.7

TOTAL ASSETS 14,642.6 11,552.9 8,821.0

Lojas Renner S.A. and Subsidiaries BALANCE SHEETS Identified on December 31, 2020, 2019 and 2018 (In millions of reais)

Consolidated 12/31/2020 12/31/2019 12/31/2018 Liabilities and shareholders’ equity Current liabilities Borrowings, financing and debentures 1,077.0 709.0 710.8 Financing - financial services operations 341.4 185.0 712.6 Financial leases 496.6 447.7 0.5 Suppliers 1,404.8 1,081.8 1,025.8 Tax obligations 1,193.2 985.3 694.0 Social and labor obligations 402.9 636.7 550.0 Statutory payables 226.8 306.9 246.0 Provision for civil and labor risks 246.3 243.1 243.0 Obligations with credit card administrators 67.1 67.6 47.8 Derivative financial instruments 31.4 7.8 14.5 Others obligations 145.9 94.4 79.4 Total current liabilities 5,633.4 4,765.3 4,324.4 Non-current liabilities Borrowings, financing and debentures 1,545.9 444.6 327.3 Financing - financial services operations 420.6 306.4 139 Financial leases 1,365.8 1,291.7 33.5 Suppliers 95.5 - - Deferred income tax and social contribution - 5.3 11 Provision for tax risks 55.3 24.5 29.5 Others obligations 24.8 24.1 1.8 Total non-current liabilities 3,507.9 2,096.6 542.2 Total liabilities 9,141.3 6,861.9 4,866.5 Shareholders' equity Capital 3,805.3 3,795.6 2,637.5 Treasury shares (119.4) (35.5) (44.5) Capital reserves 94.0 74.2 124.1 Profit reserves 1,694.5 869.9 1,235.3 Other comprehensive income 26.9 (13.2) 2.1 Total shareholders’ equity 5,501.3 4,691.0 3,954.5 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 14,642.6 11,552.9 8,821.0

Lojas Renner S.A. and Subsidiaries Income Statements For the years ended December 31, 2020, 2019 and 2018 (In millions of reais)

Consolidated 12/31/2020 12/31/2019 12/31/2018

Net operating revenues 7,537.2 9,588.4 8,426.5 Sales of goods 6,660.6 8,474.7 7,485.4 Financial products and services 876.6 1,113.7 941.1 Cost of sales and services (3,223.6) (3,730.5) (3,284.5) Goods sold (3,201.3) (3,707.3) (3,257.4) Financial products and services (22.3) (23.2) (27.1) Gross Profit 4,313.6 5,857.9 5,142.0 Sales (2,468.0) (2,505.8) (2,256.6) General and administrative (885.2) (879.3) (820.0) Losses on receivables, net (412.6) (381.0) (280.7) Other operating results 309.1 (415.4) (360.9) Total operating expenses, net (3,456.7) (4,181.5) (3,718.2) Operating profit before financial results 856.9 1,676.4 1,423.8 Financial revenue 712.9 74.4 49.2 Financial expense (369.0) (258.8) (102.8) Total financial result, net 343.9 (184.4) (53.6) Profit before income tax and social contribution 1,200.8 1,492.0 1,370.2 Current (162.8) (472.8) (278.1) Deferred 58.3 67.0 (72.0) Income tax and social contribution, net (104.5) (405.8) (350.1) Profit for the year attributable to controlling shareholders 1,096.3 1,086.2 1,020.1

Fiscal year 2020 compared with fiscal year 2019

Analysis of the Income Statement

Net Revenue from Merchandise Sales

As the situation with the pandemic improved in certain locations, consumers began to return to the stores and with this there was an important increase in customer traffic, from September forwards, returning to normal levels. This movement was particularly marked in some regions such as the North and the Northeast where footfall had already returned to normal. However, the increase in the number of infections at the year-end, again saw an increase in the number of restrictions and in some cases, the temporary closure of units, reducing the trend of continual improvements experienced up to then. In this context, sales performance during the year was significantly impacted, reaching R$ 6,660.6 million, a reduction of 21.4% compared with 2019, and Same Store Sales -23.9%.

Sales at Youcom were equally impacted by the temporary closure of the physical stores, totaling R$ 172.7 million, a decrease of 22.0%. At Camicado, Net Revenue was R$ 506.9 million, a decline of 3,5%, a much better performance than the Home Decor sector, mainly thanks to an adjustment in the product mix as well as improvements made to store productivity.

Gross Profit

Gross Profit from the Retailing Operation was R$ 3,459,3 27, a reduction of 27.4% compared with 2019, the Margin was 51.9%, reduction of 4.4% compared with 2019. This again reflects the temporary closing of the stores, generating higher levels of markdowns during the year.

Sales expenses and general and administrative expenses

Selling, General and Administrative Expenses (SG&A) were 4.7% down in 2019, the result of lower sales volumes as well as adjustments and renegotiations to adapt the operation, more particularly during the period when stores were temporarily3.112,3 shut .

Selling Expenses totaled R$ 1,885.6 million, a decrease of 4.6% while General and Administrative Expenses were R$ 723.3 million, 5.0% lower than 2019.

Financial services Result

The Financial Products Result amounted to R$ 81.9 million, versus R$ 391.4 million in 2019, largely due to lower Revenues generated.

Financial Result

Income Tax and Social Contribution

The Income tax and Social Contribution amounted, at the end of the fiscal year of 2020, R$ 104.5 million, a reduction of 74.2% in relation to R$ 405.8 million as December 31, 2019. This This variation is mainly related to the impact of Covid-19.

Fiscal Year net income

Net Income totaled R$ 1,096.3 million, reporting a slight growth of 0.9% over 2019, equivalent to a Margin of 16.5% versus 12.8% in the preceding year. This increase in the Margin is consequence, mainly, of the success of the Company in its legal action to exclude ICMS from the PIS and Cofins calculation base. As a result, a tax credit of R$ 784.6 million (R$ 742.5 million net of lawyers’ fees) was booked to Other Operating Income with respect to the principal amount as well as a further R$ 587.7 million (R$ 560.4 million net of taxes) with respect to interest on this amount and booked to the Financial Result. The updated total amount was R$ 1,372.3 million with a net effect of R$ 1,059.7 million on Net Income.

Balance Sheet Analysis:

Considerations about main accounts of assets:

Cash and cash equivalents and financial investments

Cash and Cash Equivalents and financial investments at the end of fiscal year 2020 were R$ 2,672.3 million, an increase of 94.7% compared with the R$ 1,372.2 million as of December 31, 2019. This increase is a consequence of the loans and borrowings to reinforce the working capital and the liquidity positions in a way to support the Company to a scenario of uncertainties given by the Covid-19 pandemic.

Trade accounts receivable from clients

On December 31, 2020, trade accounts receivable totaled R$ 3,811.7 million, a reduce of 0.4% compared with the balance of R$ 3,826.0 million for this item as at December 31, 2019. This reduce in accounts receivable is mainly due to the lower sales volume in the period and larger coverage of credit losses. 44

Inventory

On December 31, 2020, inventory stood at R$ 1,381.7 million, representing an increase of 22.9% compared to December 31, 2019, when this item reported R$ 1,124.5 million. This increase is related to lower sales volume, however, has been improving its inventory management, by accelerating the use of data for capturing trends, setting up collections, inventory replacement and distribution, aiming to improve its operational efficiency.

Fixed assets

On December 31, 2020, fixed assets totaled R$ 2,154.2 million, representing a reduce of 0.9% compared with December 31, 2019, when the fixed asset item totaled R$ 2,173.7 million. The reduce is related, mainly, to costs with depreciation and asset write-offs at levels higher than the acquisitions made in the period.

Right of Use

As of December 31, 2020, the right to use totaled R$ 1,700.1 million, an increase of 4.0% compared with R$ 1,880.0 million in 2019, mainly due to remeasurements of contracts during the period.

Intangible Assets

On December 31, 2020, intangible assets totaled R$ 940.6 million, corresponding to an increase of 19.9% in relation to December 31, 2019, when the amount for intangibles totaled R$ 784.2 million. This increase in corporate intangibles basically reflects the investments in the update of systems and equipments of technology.

Comments on the key liability accounts:

Loan, financings and debentures

On December 31, 2020, the loans and financings amounted to R$ 2,622.9 million (R$ 1,153.7 as December 31 2019). This increase is related to the 10th and 11th debentures issuance, to new loans and financings to working capital in the modality of law 4,131 Bacen and CCB. The resources obtained was destinated to reinforce the working capital and the liquidity positions in a way to support the Company to a scenario of uncertainties given by the Covid-19 pandemic.

Financing – Financial product operations

On December 31, 2020, the financing of these operations amounted to R$ 762.0 million, an increase of 55.1% compared with a balance of R$ 491.4 million on December 31, 2019. This increase is mainly due to the new funding to face Covid-19, reinforcing the strategic minimum cash to support the ordinary curse of the business.

Suppliers

On December 31, 2020, the outstanding amount for suppliers totaled R$ 1,500.3 million, an increase of 38.7% compared with R$ 1,081.8 million on December 31, 2019. This increase is in line with the higher volume of inventories, and also, with the extension of the deadline for international purchases.

Lease Payable

As of December 31, 2020, the leases totaled R$ 1,862.4 million, an increase of 7.1% compared to R$ 1,739.4 million as December 31, 2019. This increase is due mainly to remeasurements/new contracts.

Comments on the key equity accounts:

On December 31, 2020, the Company’s net equity totaled R$ 5,501.3 million, an increase of 17.3% compared to R$ 4,704.6 million on December 31, 2019. The main reason for the increase in shareholders' equity is related to retention of profits that finance the Company’s expansion plan.

Fiscal year 2019 compared with fiscal year 2018

Analysis of the Income Statement

Net Revenue from Merchandise Sales

In 2019 the Net Revenue from Merchandise Sales reached R$ 8,474.7 million, a growth of 13.2%, with Same Store Sales improving by 8.7%.

The year 2019 was characterized by the consistency of the collections, the efficiency of the operations and by adequate inventory assortment. These factors together with the improvements in the customer shopping experience, mainly through the introduction of technology in different processes, stimulated improved customer traffic through Renner’s stores.

Sales at Youcom amounted to R$ 221.3 million, this business continuing to make a positive contribution to consolidated performance, with growth of 23.3%, reflecting the ready acceptance of the collections and assertive inventory management. At Camicado, issues surrounding commercial and inventory management had an impact on the competitiveness of the business. Net Income was R$ 525.0 million, a year-on-year an increase of 4.0%.

The e-commerce business continued to turn in a good performance, recording growth of 52.8% during the year and exceeding that of the apparel and footwear sector as a whole, according to data published by specialized institution surveys for the year to November. This reflects the result of initiatives such as the Store Pickup as well as improvements in the app and in the shopping experience.

Gross Profit

The Gross Profit from the Retailing Operation reached R$ 4,767.4 million and registered growth of 12.8 in relation to 2018, and the Margin of 56.3%, flat in relation to 2018 (-0.2 p.p.). Improvements in the reactivity of the business and quality of the products offered reflected this performance, offsetting almost entirely the negative effect of contracted foreign exchange for imported items, the latter largely in the first half of the year.

Sales expenses and general and administrative expenses

Selling, General and Administrative Expenses (SG&A) were down 0.9% in 2019, basically a function of the adoption of IFRS 16, diminishing this account by R$ 375.4 million.

In comparative terms, these expenses increased by 12.6%, and below the growth of 13.2% in Net Revenue, guaranteeing an operating leverage of 0.2 p.p.

General and Administrative Expenses amounted to R$ 761.0 million, representing 9.0% of Revenue from Merchandise Sales, flat in relation to the 9.3% for 2018, despite the initiatives surrounding the implementation of the Digital Cycle.

Financial services Result

Net Losses were 35.8% higher in 2019, mainly due to greater Private Label provisioning as a consequence of the Realize CFI transactions and higher volumes of Meu Cartão.

Financial Result

In 2019, the Financial Result, Net was negative at R$ 184.4 million, an increase of 244.0% over 2018, above all due to the booking of R$ 134.5 million of Financial Expenses for Leasing, mainly reflecting the adoption of IFRS 16. On a comparable basis, this result was a negative R$ 49.6 million against R$ 53.6 million and also negative in 2018, with the reduction in financial income being compensated by the lower costs of financing in the period.

Income Tax and Social Contribution

The Income tax and Social Contribution amounted, at the end of the fiscal year of 2019, R$ 405.8 million, an increase of 15.91% in relation to R$ 350.1 million as December 31, 2018. This This variation is mainly related to the increase in profit for the year.

Fiscal Year net income

Net Income for 2019 amounted to R$ 1,086.2 million, reflecting a growth of 6.48% compared with 2018, equivalent to a Margin of 12.8% against 13.6% in 2018. The reduction in Net Margin is largely due to the normalization of the effective rate of income tax. In 2018, non-recurring tax credits were booked to the accounts following a favorable court ruling with no right of appeal on the tax deductibility of the Employee Food Program (Programa de Alimentação do Trabalhador – PAT) as well as the booking of amounts deemed as subsidies for investments pursuant to Complementary Law 160/17.

Additionally, the operating result was impacted by the adoption of IFRS 16, as mentioned above.

Balance Sheet Analysis:

Considerations about main accounts of assets:

Cash and cash equivalents

Cash and Cash Equivalents at the end of fiscal year 2019 were R$ 1,372.2 million, a decrease of 0.9% compared with the R$ 1,384.4 million as of December 31, 2018. This reduction is a consequence This reduction is related to the consumption of cash by the Company's financing and investment activities.

Trade accounts receivable from clients

On December 31, 2019, trade accounts receivable totaled R$ 3,826.0 million, an increase of 21.0% compared with the balance of R$ 3,162.7 million for this item as at December 31, 2018. The increase in accounts receivable is mainly related to the growth of the Company's sales and the growth of the “Meu Cartão” portfolio, driven by the greater use of this product by customers. Inventory

On December 31, 2019, inventory stood at R$ 1,124.5 million, representing an increase of 1.3% compared to December 31, 2018, when this item reported R$ 1,110.3 million. This increase in relation to 2018 is related to better stock composition at the end of 2019.

Fixed assets

On December 31, 2019, fixed assets totaled R$ 2,173.7 million, representing an increase of 9.0% compared with December 31, 2018, when the fixed asset item totaled R$ 1,994.4 million. The increase in the Company’s investments reflects the rollout of new stores in 2019, refurbishment and the remodeling of installations, as well as distribution centers, among others.

Right of Use

Applied as of January 1, 2019 to unify the lease accounting model, IFRS 16/CPC 06 (R2) requires for all lease agreements within the scope of the standard - except those covered by the exemptions - that the lessees recognize the liabilities assumed in exchange for the respective rights of use assets. As of December 31, 2019, the right to use totaled R $ 1,634.7 million.

Intangible Assets

On December 31, 2019, intangible assets totaled R$ 784.2 million, corresponding to an increase of 23.5% in relation to December 31, 2018, when the amount for intangibles totaled R$ 635.1 million. This increase in corporate intangibles basically reflects the investments in the update of systems.

Comments on the key liability accounts:

Financing – Financial product operations

On December 31, 2019, the financing of these operations amounted to R$ 491.4 million, a decrease of 42.3% compared with a balance of R$ 851.6 million on December 31, 2018. This reduction is mainly due to the liquidation of FIDC Lojas Renner in May 2019.

Suppliers

On December 31, 2019, the outstanding amount for suppliers totaled R$ 1,081.8 million, an increase of 5.5% compared with R$ 1,025.8 million on December 31, 2018.

For the balance sheet, the Company reclassified the “Rents payable” account, adding it to the “Suppliers” account, as it believes it is in line with the other natures of the group, and also because the opening of this account on the Balance Sheet does not represent, individually, relevance to other accounts. This balance comprises only rent amounts that are not the scope of the lease - CPC 06 (R2)/IFRS 16.

Debentures

On December 31, 2019, loans and financing reached R$ 1,153.6 million (R$ 1,038.1 million as December 31,2018). This increase is related to the 9th debentures issuance.

Lease Payable

Comments on the key equity accounts:

On December 31, 2019, the Company’s net equity totaled R$ 4,691.0 million, an increase of 18.6% compared to R$ 3,954.5 million on December 31, 2018. The main reason for the increase in shareholders' equity is related to the increase in capital stock due to the incorporation of the profit reserve.

Fiscal year 2018 compared with fiscal year 2017

Analysis of the Income Statement

Net Revenue from Merchandise Sales

The year was characterized by the assertiveness of the collections and efficient store operations. Instability in the macro environment and political uncertainty influenced consumer confidence, principally in the first half.

The challenges in the earlier part of the year having been absorbed, the Company resumed a good pace of sales in the second half with a growth in customer traffic through the Renner stores and an increase in items per basket, reflecting the good receptivity of the collections. Thus, Net Revenue from Merchandise Sales reported a growth of 13.4%, with Same Store Sales of 7.4%.

In addition, Camicado and Youcom operations continued to make a positive contribution to the businesses with an increase in sales of 13.7% and 44.3%, respectively.

Gross Profit

COGS reported an increase of 11.4%, in relation to 2017, and less than the Net Revenue from Merchandise Sales. Consequently, Gross Profit from the Retailing Operation posted a growth of 15.0%, against 2017, while margins expanded 0.8 p.p. year-on-year. The gain is a reflection of the effect of the exchange rate hedge contracted for imported goods combined with disciplined commercial management.

The increase of 1.0 p.p. in Gross Margin from the Renner stores compensated for narrower margins at Youcom and Camicado, due to greater promotional activity at the two store formats.

Sales expenses and general and administrative expenses

As Selling, General and Administrative Expenses (SG&A) rose 12.7% in 2018, less than the growth of 13.4% in Net Revenue for the period, ensuring operational leverage.

Selling Expenses were R$ 2,075.4 million, equivalent to 27.7% of Net Revenue from Merchandise Sales as opposed to 28.3% in 2017, reflecting productivity gains and operational efficiency. General and Administrative Expenses in turn were R$ 699.6 million, 9.3% of Revenue from Merchandise Sales compared to 9.0% the previous year. Financial services Result Revenues from Financial Products increased by 11.2%, driven by greater use of the Co-branded Meu Cartão and lower funding costs, with the migration of the portfolio to Realize CFI, initiated in 3Q17, compensating the reduction in rates charged for the principal products. Private Label revenue fell due to the reduced participation of interest-bearing installment on sales and the purchases with Meu Cartão at Renner stores, using the booklet payment format, that ceased to be registered in the Private Label portfolio and were transferred to the Meu Cartão portfolio.

Net Losses were 9.7% greater in 2018, this a reflection of the increase in the Meu Cartão portfolio. This increase – below the 20.8% increase in the credit portfolio as a whole, reflects an improvement in the process of granting and recovering of credits.

Financial Result

In 2018, the Financial Result, Net was negative at R$ 53.6 million, a reduction of 35.5%, against 2017, above all due to the decline in the cost of financing as well as the reduction in net structural debt.

Income tax and social contribution

The income and social contribution taxes at the end of 2018 totaled R$350.1 million, an increase of 29.0%, compared to 2017. This increase is mainly due to the higher net income for the period.

Fiscal Year net income

Net Income in 2018 posted growth of 39.2% compared with 2017, and a margin of 13.6% versus 11.1% for the preceding year. This reflected the improved operational result recorded in the period combined with a lower Net Financial Expense and Depreciation, the latter in line with the revised useful life of the fixed assets.

The lower effective income tax rate also contributed to the increase in Net Income. This reflected recognition of non-recurring tax credits in the period arising from a favorable final court ruling on the tax deductibility of expenses incurred with the Workers’

Food Program (Programa de Alimentação do Trabalhador – PAT), as well as the recognition of amounts considered as investment subsidies in line with the requirements of Complementary Law 160/17.

Balance Sheet Analysis:

Considerations about main accounts of assets:

Cash and cash equivalents

Cash and Cash Equivalents at the end of fiscal year 2018 were R$ 1,384.4 million, an increase of 21.2% compared with the R$ 1,142.2 million as of December 31, 2017. This reduction is a consequence, mainly, of cash generation of its operational activities.

Trade accounts receivable from clients

On December 31, 2018, trade accounts receivable totaled R$ 3,162.7 million, an increase of 19.6% compared with the balance of R$ 2,644.3 million for this item as at December 31, 2017. The increase in trade accounts receivable is related principally to the Company’s sales growth, and the growth of the Co-branded portfolio, mainly due to the higher spending of this product.

Inventory

On December 31, 2018, inventory stood at R$ 1,110.3 million, representing an increase of 20.3% compared to December 31, 2017, when this item reported R$ 923.2 million. This increase in relation to 2017 is related to better stock composition at the end of 2018, and consider the higher imported volumes in transit, aligned to the sales expectation for the beginning of 2019.

Fixed assets

On December 31, 2018, fixed assets totaled R$ 1,994.4 million, representing an increase of 10.0% compared with December 31, 2017, when the fixed asset item totaled R$ 1,813.6 million. The increase in the Company’s investments reflects the rollout of new stores in 2018, refurbishment and the remodeling of installations, as well as distribution centers, among others.

Intangible Assets

On December 31, 2018, intangible assets totaled R$ 526.2 million, corresponding to an increase of 20.7% in relation to December 31, 2017, when the amount for intangibles totaled R$ 635.1 million. This increase in corporate intangibles basically reflects the investments in the update of systems.

Comments on the key liability accounts:

Financing – Financial product operations

On December 31, 2018, the financing of these operations amounted to R$ 851.6 million, an increase of 22.1% compared with a balance of R$ 397.5 million on December 31, 2017. The main reason for this increase was the raising of 4,131 and the increase of “Vendors” operations (purchases of 7 and 8 monthly installments per Financial Institution per year), in line with FIDC Lojas Renner liquidation plan, which will mature in May 2019

Suppliers

On December 31, 2018, the outstanding amount for suppliers totaled R$ 955.8 million, an increase of 13.5% compared with R$ 842.3 million on December 31, 2017. This increase is in line with a greater volume of inventories.

Debentures

On December 31, 2018, the balance of debentures outstanding totaled R$ 552.8 million, a reduction of 36.6% relative to the R$ 872.3 million on December 31, 2017. The increase was related to amortization of the 6th debentures issuance.

Comments on the key equity accounts:

On December 31, 2018, the Company’s net equity totaled R$ 3,954.5 million, an increase of 22.7% compared to R$ 3,223.4 million on December 31, 2017. The key reason for the increase in net equity lies in the retention of 60% of net income generated in 2018 to be allocated to the reserve accounts for investment, expansion and legal and tax incentive reserves.

Liquidity and Sources of Funds:

(In R$ millions) 2020 2019 2018 Net cash generated in operating activities 608.4 1,581.7 1,168.7 Net cash consumed by investing activities (543.8) (750.3) (609.8) Net cash generated in (consumed by) financing activities 1,013.3 (647.7) (317.5) Effect of exchange flucatuation on cash and cash equivalents 8.0 12.1 0.7 Increase in cash and cash equivalents and interest-earning bank deposits 1,085.9 195.8 242.1 Cash and cash equivalents and interest-earning bank deposits at beginning of year 980.9 785.1 1,142.3 Cash and cash equivalents and interest-earning bank deposits at ending of year 2,066.8 980.9 1,384.4 Increase in cash and cash equivalents and interest-earning bank deposits 1,085.9 195.8 242.1

Analysis of the principal variations in cash flows between 2020 and 2019

Seasonal variation is inherent to the Company’s business in the generation of results as well as in the equity positions arising from the operation. For the year ended on December 31, 2020, the Company increased its cash and cash equivalents and interest- earning bank deposits, mainly, due to the new loans and borrowings, in view of the actions to overcome the impacts of the adverse scenario imposed by Covid-19 and the expectation of lower operational cash generation as a result of the effects of the pandemic.

Analysis of the principal variations in cash flows between 2019 and 2018

Seasonal variation is inherent to the Company’s business in the generation of results as well as in the equity positions arising from the operation. For the year ended on December 31, 2019, the Company decreased its cash and cash equivalents as a result, mainly, of the cash consumption from investment and financing activities.

Analysis of the principal variations in cash flows between 2018 and 2017

10.2 Officers shall comment about: a. results of issuer’s operations, especially the following: (i) description of any important components of revenue; (ii) factors that materially affected operating income

Fiscal Year 2020

RENNER

In 2020, Renner continued to pursue its physical expansion plan, although at a slower rate than usual due to the advancing Covid-19 pandemic. Consequently, 7 stores were rolled out in the period while two units were closed in the light of the frequent process of reviewing the profitability of the operations. At the end of the year, there was a total of 385 units in operation with an aggregate 709.9 thousand m2 of sales area.

In the operational context, the Company continued to innovate and invest in the Omni Transformation in spite of the restriction on activities, more especially during the temporary closure of the units. During the year, there were some important developments both in the implementation of new forms of sales as well as deliveries.

DIGITAL SALES

OPERATIONS ABROAD

PRODUCT

LOGISTICS

CAMICADO

YOUCOM

ASHUA

Ashua has also taken some important steps in its digital transformation both in the form of the attractiveness of its online operation through campaigns with influencers as well as omni-channel initiatives. On the latter front, it began to offer Whatsapp as a sales channel, this being a highlight in terms of customers adhesion among the business formats of the Company. Ashua also launched Fashion Delivery, with the sending of selected items to the customer’s residence as well as beginning Ship from Store pilot operations.

REALIZE CFI – FINANCIAL PRODUCTS

in eight interest bearing installments. Other services are also available to qualifying customers such as the Saque Rápido (Quick Withdrawal), a personal loan facility together with general assistance and insurance services, among others.

ECONOMIC AND FINANCIAL PERFORMANCE

In this context, sales performance during the year was significantly impacted, reaching R$ 6,660.6 million, a reduction of 21.4% compared with 2019, and Same Store Sales -23.9%.

COGS reported a year-on-year reduction of 13.6%, less than the reduction in Net Revenue from Merchandise Sales. Consequently, Gross Profit from the Retailing Operation was 27.4% lower, equivalent to a Margin of 51.9%, versus 56.3% in 2019. This again reflects the temporary closing of the stores, generating higher levels of markdowns during the year. The process of adjusting inventory began in April, stores reopening with the offer of discounts, and thus there was a gradual and steady improvement in margins quarter-on-quarter.

Selling Expenses totaled R$ 1,885.6 million, a decrease of 4.6% while General and Administrative Expenses were R$ 723.3 million, 5.0% lower than 2019.

Other Operating Results totaled R$ 726.6 million against a negative R$ 35.2 million in 2019. This increase is basically due to the recognition of R$ 742.5 million of principal, net of legal fees, following a successful action to exclude ICMS from the PIS and Cofins calculation base.

Adjusted EBITDA from Retailing amounted to R$ 1,108.5 million in 2020, 29.0% lower than 2019. EBITDA Margin was 16.6%, versus 18.4% in 2019, a reflection of reduced operational leverage, a function of sales volumes and a reduction in Gross Margin. This result also reflects the recognition of R$ 742.5 million in tax credits, already mentioned. Excluding this amount, EBITDA would have been R$ 366.0 million, equivalent to a Margin of 5.5%.

The Financial Products Result amounted to R$ 81.9 million, versus R$ 391.4 million in 2019, largely due to lower Revenues generated. The decline in Revenues is largely a reflection of lower portfolio levels and reflecting the period when stores were closed as well as the decline in the use of credit cards as a whole. Furthermore, discounts as a result of renegotiations, as well interest exemptions in the period when stores were closed and the reduction in interest rates also had an impact on performance. Important to mention that as portfolio volumes were replenished, there was a gradual improvement in Revenues for subsequent periods. Net Losses were 8.3% higher, due to portfolio higher coverage levels at 15.6% against 12.2% in 2019, given the uncertainties surrounding the macroeconomic scenario, which occasioned a higher level of provisioning. Operating Expenses increased 13.1%, reflecting more intensive collection activity and expenses related to digital initiatives at Realize.

The total financial products portfolio recorded growth of 2.1%, and below normal. The Private Label portfolio amounted to R$ 1,167.6 million in December 2020, 15.0% lower than 2019, again a reflection of temporary store closures. The co-branded Meu Cartão, in turn, posted a portfolio outstanding of R$ 2,349.6 million, a growth of 13.5%, still proportionally lower than historically, but compensating for the fall in the Private Label. The reduction in the percentage of total overdues was principally a consequence of improved credit recovery in the case of Meu Cartão, more than offsetting the increase in the case of the Private Label, impacted by the writing off of assets over the 360 days as opposed to 180 previously. It is worth recalling that as from April 2019, transactions with the Private Label are now being booked in Realize’s accounts and as a result, in 2H20, principally, registered higher volumes more than 180 days overdue. The level of Losses was slightly higher relative to the total portfolio, principally due to the increase in Meu Cartão, reflecting lower growth and higher coverage, adequate for the economic scenario of the period.

The Renner Cards totaled 33.8 million units in December 2020 and represented a participation of 41.4% in merchandise sales versus 43.7% in 2019, mainly due to the reduction in the use of 0+8 installment finance plan, reflecting customer attitudes with a lower propensity to purchase on an interest-bearing installment basis and also more inclined in the current context to effect cash payments. The average ticket for the Renner Card was R$ 211.49 in 2020, flat in relation to 2019. The average ticket for the Company was R$ 151.06, a decrease of 2.2%.

The Operating Free Cash Flow had positive effect of R$ 1,302.9 million, due to the claw back of credits following the successful PIS and Cofins action. This amount was neutralized by the increase on the Taxes line. Thus, the lower generation of Free Cash Flow was due mainly to the lower Adjusted EBITDA in the period.

Net Income totaled R$ 1,096.3 million, reporting a slight growth of 0.9% over 2019, equivalent to a Margin of 16.5% versus 12.8% in the preceding year, thanks to the claw back of the tax credit. Excluding this non-recurring item, the net income figure would have been R$ 36.6 million and a reflection of lower Total EBITDA during the period as well as increased expenses with depreciation, reflecting fixed assets, and investments made in previous periods.

Fiscal Year 2019

The year 2019 was one of transition with the beginning of a new federal administration, bringing with it changes in the country’s economic policy and an agenda of reforms. The year began with a positive outlook for the economy although the longer than expected delay in approving Social Security Reform combined with continuing high levels of unemployment took its toll on consumer confidence, this feeding through to the pace of economic recovery.

Notwithstanding, as from the middle of the year, with greater economic definitions evolving and the approval of social security reform, confidence levels gradually recovered, which combined with lower rates of inflation and interest, made for a more favorable macroeconomic environment. This in turn triggered greater footfall through the shopping centers and an increase of 55

4.7% in retail sales for the year to November based on the IBGE’s (the Federal Government Statistics Office) Monthly Retailing Survey. In 2019 the Company has advancing and investing on a more consistent basis in digital initiatives for its operations organized around three structural projects.

The first is directed to the construction of the Single View of the Customer, seeking to create a personalized and consistent relationship with the customer introducing greater assertiveness in communication and the relationship with the brand. The second is the use of data in the Product Life Cycle with initiatives which range from the capture of fashion trends to the distribution of the items in the stores through Artificial Intelligence. And the third is the Omnichannel Transformation, the aim of which is to guarantee a single shopping experience with the complete integration of online and offline sales channels.

RENNER

The store network has 367 units in Brazil, 9 in Uruguay as well as 4 in Argentina, the latter marking the debut of operations in that country. The stores have an average sales area of 1.8 thousand m2 and 91% of them are located in shopping malls. In addition, Renner offers its products via e-commerce platforms in both Brazil and Uruguay.

In line with Renner’s expansion plan, in 2019, 29 stores were rolled out, of these 6 being located abroad. Consequently, Renner ended the year with 380 units in operation and equivalent to 683.7 thousand m2 of total sales area.

In the context of store operations and in line with the Structural Project of the Omni Transformation, important progress was made on initiatives for the flexibilization of the final stage of the purchasing process for customers and reducing eventual friction in the shopping experience. Available in all stores is the Mobile Checkout, whereby using specific devices, store employees are able to conclude the purchase from any point in the sales area, and the Digital Checkout, where e-commerce products are sold in the physical stores. In addition, self-checkouts are being installed - already up and running in 12 units, as of December - while Digital Pay, where the customer uses a smartphone to pay for purchases through the Renner app - is operating on a pilot basis at 30 stores and which should continue to be gradually implemented throughout the store network.

In addition, the implementation of product identification by radio frequency (RFID) for items of apparel was concluded at all Renner stores in Brazil. This tool permits identification of the location, stock-taking and show the main information of the products very rapidly and accurately. With this system, it has been possible to increase the frequency of inventory checks and improving the speed of stock replacement in the sales area with important benefits for productivity and stockout levels and consequently ramping up sales.

Within the scope of the Omnichannel Transformation project, the RFID is conducive to greater accuracy in inventory control and an important step towards online and off-line integration and enabling the Company to use instore stock for e-commerce sales. Thanks to this development, important improvements are envisaged for customers who will receive their orders faster from the nearest store at hand. Tests began in 2019 at 30 stores for using inventory of the store for pickup of items acquired online in conjunction with a pilot operation using lockers at 7 units. This provides for a 100% autonomous shopping experience from purchase through delivery.

E-COMMERCE

The year was also important for the e-commerce operation with investments made in the shopping experience through improvements in user friendliness and platform content as well as in omnichannel processes. Thanks to all the new functions which have been implemented, this channel has continued to grow at more than 3,5 times that of the online market for apparel in Brazil according to data from specialized institution, and gaining share relative to the Company’s overall sales.

The highlight for the year was the Renner app which saw significant growth in the number of downloads during the course of the year, in December, accounting for 2.3 million active customers. The app gained particular relevance in the online operation: it was the largest generator of repeat sales among the digital channels, accounting for 33% of sales and 45% of the e-commerce accesses.

Another significant development has been the “Click and Collect”, the participation of which grew during the year, in December reaching 36% of total orders, further underscoring the attractiveness of the omnichannel initiatives currently being implemented at the Company. Of the total number of customers using the store pickup facility, more than 13% of these made additional purchases on collecting their original purchase item.

In order to refine its understanding of, and connection with customer needs the Company broadened testing initiatives, prototypes, surveys and interviews with customers with the aim of improving the quality of the available digital services and the shopping experience offered. This has been instrumental in Renner being the recipient of several awards, among them “Favorite Store – Fashion and Accessories” and “Top 5 Diamond”, from E-Bit. As a result, omni customers have been buying almost three times more frequently than the physical store customers alone while their annual expenditure has been 2.5 times greater.

OPERATIONS ABROAD

Renner embarked on its first overseas operation in 2017 in Uruguay where it already has 9 stores of which 2 were rolled out during 2019. The Company’s entry into the Uruguayan market was important to gain experience abroad and to test the business model. The products have had excellent acceptance from the local customers and there is an e-commerce operation in place as well as a hub for receiving imports directly from Asian suppliers thus avoiding payment of import tariffs twice over. In the light of the performance in Uruguay, in 2019 the Company decided to also open stores in Argentina, a country with a large population, a favorable competitive environment and with commercial opportunities arising from a presence within the Mercosur bloc. In December, four stores were opened in Argentina, two of them in Buenos Aires and a further two in Córdoba, all six of them adopting the same standard and positioning as other Renner stores.

PRODUCT

The Company is constantly investing in the reactivity, flexibility and agility of its business. And 2019 was no different. During the year, the use of non-dyed fabrics was increased, reducing the need for importing already pattern-printed fabrics, resulting in greater speed of purchase and flexibility in manufacture. In addition, the proportion of items with up to 60 days lead time increased as a result of the various improvements implemented. Currently more than 15% of domestic purchases are executed within a 30-day average.

With respect to innovation in the Product area, Renner concluded the first stage of the implementation of PLM (Product Lifecycle Management), a management system for the product life cycle and allowing the digitalization of the development process of the items, centralizing the management of the collections and the tracking of items. The system also allows greater standardization of processes and improves supplier integration and management of materials. The year concluded with all domestic production items being developed and their purchase orders channeled through the system. In addition, for imported products, the development stage has already been implemented.

During the year, the Company continued to examine alternatives for the use of Advanced Analytics in the quantification of the fashion trends. In this context, the launch of a product using trends captured from consumer data and characteristics of products is under development. The aim is to increase the probability of success in predicting the direction of a fashion trend and enhancing agility in decision making from the outset of the process of developing the collections.

Also, for the assortment and allocation of products in the stores, the Company has begun to implement this process based on predictive models, whereby algorithms forecast the demand per item and per store and thereby rendering distribution data driven. In 2019, items distributed without human intervention amounted to about 8% of total sales and generated an incremental revenue of 12% for these products with a corresponding reduction of 18% in the inventory needs. Furthermore, since April, sales forecasting is using Artificial Intelligence, bringing greater precision and helping decision making.

LOGISTICS

In 2019, several improvements were made to logistical operations and important progress made in both agility and productivity, which has brought significant advances in store delivery times – reduced by 20% - and increased store servicing punctuality to 90%. Regarding productivity, making more optimal use of delivery trucks with a 10% increase in the number of items per vehicle and consequent reduction of travels.

The management of the product flow is now executed on an integrated basis between the Product, Operations and Supply Chain areas, in this way fine tuning the distribution process. This initiative has resulted in 20% gains in consistency of basic instore items.

Work on the construction of the Cabreúva - SP Distribution Center with a 150 thousand m2 capacity has begun as part of the plan for evolving the logistics network. This project will use new automation technology and will serve the omnichannel operation, allowing gains in efficiency and speed, improving the synergies between the businesses. The DC’s construction will be according to the built to suit model and operations are expected to begin in 2022.

CAMICADO

Acquired in 2011, Camicado aims to enchant people with home and decoration experiences, being the largest retailer in this segment. It has a large variety of products, among them articles for household decoration, kitchen utensils, table sets, small home appliances, cutlery, bed, bath and tableware and organization. The store network is located nationwide through 114 units, of which 9 were rolled out in 2019. All the stores are located in shopping centers with an average sales area of 427 m2, equivalent to an overall total of 48.7 thousand m2 in sales area. In 2019, 3 units were closed following a review of the profitability of the operations.

Camicado has also made headway in the direction of providing a single shopping experience for its customers, irrespective of channel. In the second half, it launched its e-commerce app and the products from its online platform already being sold in all

bricks and mortar stores. This together with other functional improvements to the site, has led to an increase in conversion ratios and traffic. Sales through the e-commerce channel reported significant growth in 2019.

In terms of Camicado’s own marketplace, during the year new partners have been established with an increased number of sellers. Through this platform it is possible to expand the assortment of available products, offering a more comprehensive home and décor solution for consumers.

Furthermore, the business also sought operational improvements such as inventory adjustments, a revised merchandise mix, and redesigned processes for better execution of operations. These topics have been mapped out and are being implemented by the new business management team with the aim of restoring profitability.

YOUCOM

Youcom was launched in 2013, its target public being the middle class in the format of a specialized store, enchanting and connecting people with a young lifestyle. The units have an average size of 165 m2, with a differentiated ambience, offering quality products at competitive prices with a strong fashion appeal.

During the course of 2019, Youcom continued to expand its store network, rolling out 9 units, and in so doing breaking through the 100 stores mark. As part of an ongoing process for improving the profitability of its operations, 2 units were closed in 2019. Thus, at the end of December, Youcom was operating 101 physical stores in 11 states plus the Federal District, with a total sales area of 16.7 thousand m2.

In the same way as the Company’s other businesses, Youcom also took steps to structure its omnichannel operation, offering its own "Store Pickup” service as well as initiated the pilot of “Ship from Store” operation for online purchases. Progress has also been made in the use of customer data, allowing identification and a greater understanding of purchasing profile and helping develop customer relationships and the product mix on offer.

ASHUA

The Ashua Curve & Plus Size brand was launched in 2016, exclusively selling through Renner’s e-commerce channel, offering products with sizes from 46 to 54 which enhance the value of curves and the female body, providing both quality and fashion information. As a result of customer demand and in response to good sales performance, in 2018, three physical stores were opened, each one already operating in the omnichannel environment.

Good customer acceptance of the first units resulted in the rollout of a further 5 stores in 2019, albeit still on the basis of a pilot operation, marking the brand’s debut in the city of Rio de Janeiro in addition to its existing footprint in the states of São Paulo and Rio Grande do Sul. By the end of 2019, Ashua had 8 units in operation with an average sales area of approximately 240 m2.

REALIZE CFI – FINANCIAL PRODUCTS

Realize Crédito, Financiamento e Investimento S.A. - Realize CFI is the Financial Institution which supports Renner’s retail business through the management of financial products. It aims to enchant clients with financial experiences and solutions that impact their lives. The products are offered to Renner’s customers as instruments of convenience and loyalty, aligned to the Renner’s value proposition.

In December 2019, Realize CFI had a total credit portfolio of R$ 3.4 billion, largely consisting of two types of card: the Renner Card (Private Label), which was created in 1973 and one of the first store cards in Brazil, and the Co-Branded Card with the Mastercard and Visa flags and known as “Meu Cartão”. The latter card can also be used at other establishments in Brazil and abroad. For shopping at Renner stores, both offer payment options either in the form of up to five interest-free monthly installments or eight fixed monthly payments with interest. The Saque Rápido (Quick Withdrawal), a personal loan facility, is also offered to eligible customers, together with some assistance services and insurances.

Realize CFI also saw some important developments in 2019, enhancing convenience and improving the customer experience. The entire process from the granting of credit to collection and renegotiation are now totally digitalized including the use of facial biometry, which both facilitates and also brings more security to the process. In this context, during the year attendance via chatbots, through the use of Artificial Intelligence was introduced for services related to collections and customer accounts. Greater convenience and agility has been provided for the co-branded cards through Meu Cartão Agora where the card is issued and enabled for immediate use. The contactless version of the card for proximity payments has also been launched.

In addition, for increasing mobility and autonomy for the customer, new functions were included in the cards section of the Renner app. Among the new features on offer are the renegotiation of accounts and contracting of the Saque Rápido facility with withdrawal of the amount at the store or credit in account.

Additionally, the pilot operation for the new Relationship Program was introduced, benefits of which increase customer loyalty through the shopping experience. Purchases at Renner stores generate points, which are accumulated for an upgrade in

category and as the customer upgrades the categories, different benefits accrue in the form of product, discounts and partnerships as well as in differentiated experiences.

ECONOMIC-FINANCIAL PERFORMANCE

Thus, Net Revenue from Merchandise Sales reached R$ 8,474.7 million, a growth of 13.2%, with Same Store Sales improving by 8.7%, indicative of solid gains in market share during the year given the evolution of just 1.1%, for the year 2019 up to November for the sector as a whole according to the IBGE’s (Federal Government Statistics Office) Monthly Retailing Survey Index. COGS posted an increase of 13.8% over 2018 and slightly more than the growth in Net Revenue from Merchandise Sales. Consequently, Gross Profit from the Retailing Operation registered growth of 12.8%, equivalent to a Margin of 56.3%, flat in relation to 2018 (-0.2 p.p.). Improvements in the reactivity of the business and quality of the products offered reflected this performance, offsetting almost entirely the negative effect of contracted foreign exchange for imported items, the latter largely in the first half of the year.

Selling, General and Administrative Expenses (SG&A) were down 0.9% in 2019, basically a function of the adoption of IFRS 16, diminishing this account by R$ 375.4 million. In comparative terms, these expenses increased by 12.6%, and below of 13.2% in Net Revenue, guaranteeing an operating leverage of 0.2 p.p..

Other Operating Expenses were R$ 53.2 million against R$ 30.0 million, in 2018. This increase was mainly driven by higher provisions for the employee Profit Sharing Program (PPR) (+61.7%) and reflecting corporate performance in the period, notwithstanding the the booking of a higher amount of tax credits in 2019. These credits totaled R$ 87.4 million against R$ 43.6 million in 2018, and mainly the result of legal rulings which reduced social security charges as well as a revision of the methodology for calculating the SAT – Occupational Accident Insurance.

Adjusted EBITDA from Retailing was R$ 1,561.8 million in 2019, 9.7% higher than the previous year, equivalent to a Margin of 18.4%, versus 19.0% in 2018. This performance is explained principally by the increase in Other Operating Expenses and by the effect of the adoption of IFRS 16, which reduced this result in R$ 60.0 million (0.7 p.p.). If the effect of IFRS 16 is excluded, EBITDA from Retailing would have risen by 13.9% and equivalent to a Margin of 19.1%.

The Financial Products Result amounted to R$ 391.4 million, an increase of 12.0%, due to higher income generated mainly from the Co-branded Meu Cartão and reflecting a rise of 42.6 % in this portfolio. In addition, growth in the Private Label revenue was due to lower funding costs and the appropriation of interest on transactions which since April, have been booked to Realize CFI. Net Losses were 35.8% higher in 2019, mainly due to greater Private Label provisioning as a consequence of the Realize CFI transactions and higher volumes of Meu Cartão. Operating Expenses increased 12.0%, lower than growth in Net Revenue from the operation.

The total financial products portfolio posted year-on-year growth of 23.6%, mainly due to the greater use of Meu Cartão, portfolio of which totaled R$ 2,070.6 million (+42.6%). The Private Label portfolio in turn amounted to R$ 1,317.3 million in December 2019, 2.7% greater than in 2018 while outstandings for the Saque Rápido facility rose 9.8%, reaching R$ 55.8 million.

As of December 2019, Renner Cards totaled 32.5 million units, representing a share of 43.7% of merchandise sales versus 44.2% in 2018. The percentage is lower than the preceding year, principally due to the reduction in the share of the purchases made via the installment, interest bearing 0+8 credit plan, reflecting the behavior of the customer where there is less propensity for interest bearing installment purchases.

In 2019, the Company generated a Free Cash Flow of R$ 297.6 million, a reduction of R$ 304,9 million from 2018 due largely to Operating Financing of Financial Products. With the liquidation of the FIDC in April 2019, responsible for financing the Private Label operation, this financing function has been transferred to Realize which uses proprietary capital.

As at December 31, 2019, the Company’s Net Debt stood at R$ 272.7 million, reduced from the position as at December 31, 2018. The decline was due to lower levels of Operating Financing following the liquidation of the FIDC as commented above and the stable levels of Cash and Financial Investments.

Net Income for 2019 amounted to R$ 1,086.2 million, reflecting a growth of 6.5% compared with 2018, equivalent to a Margin of 12.8% against 13.6% in 2018. The reduction in Net Margin is largely due to the normalization of the effective rate of income tax. In 2018, non-recurring tax credits were booked to the accounts following a favorable court ruling with no right of appeal on the tax deductibility of the Employee Food Program (Programa de Alimentação do Trabalhador – PAT) as well as the booking of amounts deemed as subsidies for investments pursuant to Complementary Law 160/17.

Further to the Company’s long-term strategic plan in 2019, the investments in fixed assets were R$ 751.4 million. Of this amount, 34.9% were used for the opening of 52 new stores, of which 29 Renner, 9 Camicado, 9 Youcom and 5 Ashua. A further, 32.9% was expended on IT Systems and Equipment and 19.3% on Distribution Centers and directed towards the start of construction work on the new DC in São Paulo. The remaining 12.9% was applied in the remodeling of units and others.

Fiscal Year 2018

In 2018, we began to prepare for a new cycle which is beginning to take shape. In this context, following the conclusion of the necessary infrastructure and the principal foundations, with the updating of the ERPs systems and the financial products and e- commerce platforms, we started on our path in the direction of the Digital Cycle. We have set out what is to go digital for Renner and worked on raising the awareness in our managers and teams on the evolution in our mindset in order to use technology to achieve and reinforce our value proposition. We have established the roadmap of work in the direction of digitization of the Company and we have organized this around three major structural projects: the first, directed to personified communication and construction of the Unique View of the Customer, the second, focused on the use of data for the Product Life Cycle, and the third, relative to the Omnichannel Transformation, with the complete integration of online and offline sales channels.

In this last year, we have already taken strides towards implementing these digital initiatives. We have launched new sites and apps for online sales at Renner, Camicado and Youcom, and also introduced smart devices at Renner stores, increasing the productivity of the operations and customer enchantment. These devices have apps for remote point-of-sales systems, faster checking for product availability, replacement and price markdowns as well as issuing sales management reports.

Already totally digital from conception, Realize CFI also reported important progress: it has launched a facial recognition system for reducing fraud and the self-issue of cards, with online approval of credit and immediate authorization for purchases. We have also developed our own Negotiation Portal which provides customers with an online self-service channel for the negotiation of past dues in an agile, secure and very simple way. The launch of the Portal has been instrumental in an increase of more than 30% in reaching agreements with delayed payment customers.

As to the issue of Sustainability, in 2018, our commitment to increasingly responsible fashion has gained traction. The year saw the launch of Renner’s most important project within the scope of sustainability: the Re Seal, which represents the Company’s commitment to bring this theme to the forefront of all our stakeholders. Since the first half, the stamp has been affixed on labeling of products manufactured with lower environmental and social impact.

RENNER

In line with the continued plan of expansion at Renner, 26 stores were rolled out in 2018, of which four were unveiled in Uruguay. The Company constantly revises and evaluates the profitability of its operations and for this reason closed five stores during the year. There are currently 351 units in operation with an aggregate sales area of 632.7 thousand m2.

Productivity is one of the most critical aspects of Renner’s operation and in 2018, some important initiatives were taken in this direction. The operational interface for the points of sale was modernized permitting the installation of touch monitors at checkout points as well as dedicated screens for customers. This additional automation has simplified the process, facilitated service and increased the transparency of the operations for the customers as well as reducing employee training time.

During the last year, investments were also made in improving instore mobility. With upgraded Wi-Fi network structures, smart devices can be used at all units, improving service response and supporting store management, optimizing the time taken by employees in conducting a series of activities.

For the customer, the principal use of these devices is focused on the mobile checkout, permitting the conclusion of a purchase from any instore location as well as for rapid real time checking of inventory on behalf of the customer for verifying stock as to the availability of a given product. From the employees’ point of view, other applications permit more assertive actions and velocity in markdowns and replacement of products in the sales areas as well as the management and the instantaneous monitoring of store performance, optimizing managerial time, enabling faster decisions to be adopted and further shifting the focus to customer service.

In 2018, the Company also made progress with the project for installing RFID (Radio Frequency Identification) at Renner. Through a process of radio frequency, this allows product localization, counting and basic information to be identified very quickly and precisely. Tests have been made and a pilot project already implemented, initially for reducing stockouts and enhancing the inventory process.

E-COMMERCE

The new Renner e-commerce channel was launched in early 2018. In addition to upgrading the layout, more focused on fashion and lifestyle, the new virtual page also brings with it a series of new functions and services for enriching the online shopping experience. These functions and services include login via social networks, image search, one click shopping, voice search and the wish list, all of this with more speed and innovation.

The native app was installed at the year-end, since then offering a greater number of services to our customers as well as being more user friendly. In 2018, 75% of online sales were conducted via mobile with revenues via app growing by more than 260% in relation to 2017.

In line with the Omnichannel Transformation project, products purchased through the Renner e-commerce channel can be picked up at any store in Brazil. Besides providing a comfortable and versatile experience, this in-store pickup initiative has proven very positive by increasing the average ticket size as well as the volume of customer traffic through the physical stores. Approximately 25% of online sales were delivered to customers instore and about 10% of the consumers made additional purchases when picking up goods bought online. In this same context, new models of delivery were implemented: in Rio de Janeiro we have Same Day Delivery, in São Paulo, Next Day Delivery while express delivery is available in 23 estates in Brazil.

Additionally, the implementation of RFID will also improve stock control and allow the Company to use store inventory for e- commerce sales. With these developments, important improvements are expected both on the customer front, the order being received sooner from the nearest store, and also for Renner by reducing its expenses with freight and transportation.

URUGUAY This operation began in 2017 and since then, receptivity from Uruguayan customers has been very positive with performance above expectations. The year 2018 was important for the maturing of some of the processes created for replication of the business model outside Brazil.

PRODUCT As part of the continued Fashion Retailer Cycle, in 2018, the process of specialization of the teams was concluded, while some of the brand teams were also reinforced, principally in the design area. Innovations were also made in the launch of products with the creation of in-season capsule collections, where the entire process from trend capture to the launch of the product is made in a more agile manner.

As to the use of technology for product development, Renner has begun the PLM (Product Lifecycle Management) pilot project. This is a product life cycle management system which will allow the digitization of the development process of the items from trend capture to the purchase order, centralizing the management of the collections and the tracking of items. The system ensures greater standardization of processes through the creation of a data trail relative to the capture and development of the products. The system also improves the integration with suppliers and the management of materials.

Again during the year, Renner has begun the project for quantifying the predictions of fashion trends and ensuring analysis and correlation of external (social media, international fashion e-commerces, etc.) and internal data. Using this tool, it is possible to increase the probability of making the right predictions as to tendency and accelerating the decision-making process right from the outset of the development process of the collections.

Additionally, the Company has two projects under development for assortment and distribution of items to the stores: the first relates to distribution based on prescriptive Advanced Analytics models, in which algorithms predict sales per item (SKU) and by store using historic data, in this way realizing data-driven distribution. The second project involves the digitization of the assortment, using algorithms for identifying the ideal mix considering the characteristics of each store. Both initiatives increase product assertiveness at the units with positive effects on turnover, sales and margin.

LOGISTICS Some important transformations occurred in the logistics operations in 2018, leading to new levels of productivity, velocity and precision, resulting in a 7% reduction in product delivery times to the stores. A pilot project is also underway for nocturnal deliveries, such that the stores are able to begin their activities immediately the following day.

In terms of the logistical network and in the light of the increase in e-commerce operations, the Rio de Janeiro DC has been expanded with a revised layout to guarantee greater productivity and a more agile service.

CAMICADO

In 2018, 10 new stores were opened. All stores in the chain are located in shopping centers and have an average sales area of 433 m2.

Camicado’s e-commerce business was also modernized during the year, a new online platform being launched in October. The new site gives customers the same shopping experience as with the physical stores where products are arranged by collection, as well as offering more responsive browsing, with more functions and services at the disposal of the user. At the end of the year, Camicado also began a pilot project for instore pickups in 11 units. In addition, the new e-commerce facility brought improvements to the wedding registry list, an important segment in this business, offering a greater range of personalization alternatives to the customer.

The new online platform has also enabled the creation of Camicado’s own marketplace. During the year, all functions were created and tested for operationalizing this platform as well as developing partners (sellers). During the same period, progress was also made on work which will allow Camicado to participate in the activities of third party marketplaces.

YOUCOM

During the course of 2018, Youcom proceeded to expand its store network, rolling out 16 units in different regions, including four states where it still did not have a presence. As part of the ongoing review of profitability of its operations, 6 units were closed in 2018. At the end of December, Youcom was operating 94 physical stores in nine states plus the Federal District, amounting to 15.5 thousand m2 of sales area.

In the same way as the other businesses, in July, the Company launched its new e-commerce site. This brings an updated layout with greater fashion content and new functions and services which enrich the online shopping experience. Among new features, particularly important are additional search functions, product visualization and customized browsing.

ASHUA

The Ashua Curve & Plus Size brand was launched in 2016, exclusively selling through Renner’s e-commerce channel, offering products which enhance the value of curves and the female body, providing both quality and fashion information. As a result of customer demand and in response to good sales performance, in 2018, three physical stores were opened in the brand’s name, each unit with a sales area of between 200 m2 and 250 m2.

The opening of the bricks and mortar stores was a natural evolution for the brand which had initially established its business through online sales, leveraging the capillarity of e-commerce for serving women throughout Brazil. The first store was opened in September in Porto Alegre, and the following two in the city of São Paulo. The units already operate in a totally omnichannel environment in line with their origins in the digital universe.

REALIZE CFI – FINANCIAL PRODUCTS

Already totally digital right from conception, Realize CFI has also experienced important developments in the direction of the new cycle. Lojas Renner was the first retailer to completely digitize the process of capture, analysis, granting of credit and credit card liberation. Adjustment of limits over time and other services have also been digitized. For this purpose, mobile devices are used for facial recognition at any point in the store, significantly reducing fraud and the time involved in the capture process.

Using the “Quero Cartão Renner” app, the customer is able to effect the capture by himself using his own smartphone. The process is very secure and while being faster, uses exactly the same methodology of credit concession as other formats, including the use of facial recognition, all of which can be concluded with just a few clicks. Renner has integrated the e-commerce channels and Realize CFI, and is thus the only retailer to provide a credit card instantaneously and then make it available for purchase at the same time.

The Realize CFI’s website and app has also been updated with simplification of the installment payments process. The use of these channels already represents approximately 30% of the monthly receivables using payment booklets and invoices. As well as reducing costs, the use of these channels is an incentive to effecting purchases via e-commerce.

In 2018, a Negotiation Portal was set up for providing an online self-service channel for negotiating debt, quickly, safely and very simply. With the launch of the Portal there has been an increase of more than 30% in agreements with past due customers, the agreed payments subsequently being honored by more than 75% of the customers.

As consequence of the initiatives abovementioned, Company reached Net Revenues form Merchandise Sales of R$ 7,485.4 million, an expansion of 13.4%, and Same Store Sales of 7.4%. The Gross Profit from Retailing Operation increased 15.0%, compared to 2017, and the Gross Margin was 56.5%. The expansion is explained by the hedges contracted on imported goods.

As Selling, General and Administrative Expenses (SG&A) rose 12.7% in 2018, less than the growth of 13.4% in Net Revenue for the period, ensuring operational leverage.

Other Operating Expenses amounted to R$ 30.0 million against R$ 70.9 million in 2017, this decrease due to recognition of tax credits and lower provisions for the employee Profit Sharing Program (PPR), due to the presented operational result.

Adjusted EBITDA from Retailing in 2018 was 24.4% greater than the preceding year. The result was largely due to the expansion in Gross Margin, the dilution of expenses and the reduction in Other Operating Expenses. The Adjusted Margin from Retailing was 19.0%, versus 17.3% in 2017, a 1.7 p.p. improvement.

Revenues from Financial Products increased by 11.2%, driven by greater use of the Co-branded Meu Cartão and lower funding costs, with the migration of the portfolio to Realize CFI, initiated in 3Q17, compensating the reduction in rates charged for the principal products. Private Label revenue fell due to the reduced participation of interest-bearing installment on sales and the purchases with Meu Cartão at Renner stores, using the booklet payment format, that ceased to be registered in the Private Label portfolio and were transferred to the Meu Cartão portfolio.

Operating Expenses increased by 20.9% due to the increase in Meu Cartão processing volume, costs of compliance of Realize CFI and the customer call center which were greater due to recent regulatory changes implemented by the Central Bank of Brazil (BACEN). The total financial products portfolio, net of the FIDC fees, reached R$ 2,789.5 million, a year-on-year growth of 20.8%. The gross Private Label portfolio amounted to R$ 1,281.2 million in December 2018, 9.9% greater than the preceding year. The Saque Rápido (Quick Withdrawal) portfolio fell 29.3% and totaled R$ 50.8 million. The gross portfolio of Meu Cartão was R$ 1,457.4 million, an increase of 36.1%, principally due to the unification of limits and also greater use of this product.

In relation to delinquencies, Losses, Net of Recoveries on the Portfolio were lower for all three products, reflecting an improvement in the processes involving the granting and recovery of credit. In the case of the Saque Rápido, the decline was more accentuated due largely to the improvement in levels of recoveries realized on a significantly larger portfolio from preceding periods. With Meu Cartão, this relationship was lower despite the more robust growth of the portfolio.

The Total Adjusted EBITDA recorded growth of 20.2%, representing a margin of 23.7%, versus 22,4% in 2017, reflecting stronger EBITDA Margin from Retailing.

b. variations of revenues attributable to changes of prices, exchange rates, inflation, changes of volumes and introduction of new products and services

Company constantly works in differentiation of its products where every effort is in delivery of quality items, with higher added value comparing with competition. The fashion segment has, in its products, extremely short life cycles, with changes that make difficult comparison of prices from one period to another.

Thus, even though inflation to the consumer, measured by IPCA (index used by the government for inflation goals), was 4.52% in 2020 (4.31% in 2019), this cannot be considered the most significant impact on sales growth reported by the Company. Thus, comparing or attributing revenue growth because of volumes changes might lead to improper conclusions, because the same products are not necessarily being offered from one period to another. Company’s prices policy has low sensibility on changes derived from foreign exchange variation. The products traded by the Company are mostly from national origin, which allows the administration of fluctuations of prices in imported products, without significant changes in consumer’s price, even in a year of significantly fluctuations due to the scenario of economic instability aggravated by Covid-19.

In Argentina, due to the economy hyperinflationary, we observed periodically the impacts of the local currency depreciation in the maintenance of the sale prices, however, in the consolidated, that the currency used is the Real, there are no relevant impacts. c. impact of inflation, variation of prices of main inputs and products, of foreign exchange and interest rate on the operating income and on the issuer’s financial income

The fashion segment has, in its products, extremely short life cycles, with changes that make difficult comparison of prices from one period to another, once we are not offering to the consumer the same product. Therefore, comparing or attributing revenue 63

increase to volume of pieces sold may lead to improper information, because Company does not recognize it as an adequate metric for disclosure. The same logics prevail regarding costs of goods sold.

Even if it is reasonable to estimate that inflation rates make sensitive both revenue and costs and expenses, we understand that improvements in the production processes of the supply chain and in Company’s management neutralize a relevant part of effects which eventual price increases in our costs and expenses could generate, therefore, we believe that the operating income does not suffer material impact due to fluctuations in the inflation rates currently perceived in the Brazilian market.

Company’s prices policy has low sensibility to derived from foreign exchange variation. Our activity is completely directed to the domestic market and our products are, mostly, from national origin, which allows the administration of fluctuations of prices in imported products, without significant changes in consumer’s price. It is also emphasized that, in order to reduce possible impacts in profitability of imported products resulting from changes in foreign exchange rates, Company has been contracting hedge operations, through forward dollar call options (NDF- Non-Deliverable Forward). Once the purchases planning is defined, it is the basis of the price level of the currency that enables trade of goods in local market within the standards of expected profit margin and probable delivery terms.

When we limit the foreign exchange risks incurred in Company’s operations execution, through derivative instruments contracting, we seek to guarantee minimum yield in transactions that involve assets or liabilities priced in foreign currency, as in profitability derived from trade of imported products or in limitation of costs in debt operations in foreign currency.

The Company has four stores in operation in Argentina, which economy is considered to be hyperinflationary, requiring the accounting recognition of the monetary correction of non-monetary items in the balance sheet. In 2020 the net effect of the monetary correction was positive on the financial result in R$ 21,284 (R$ 10,248 of financial expenses in 2019).

10.3 Officers shall comment about relevant effects that events below had caused or are expected to be caused on the financial statements of the issuer and on its incomes: a. introduction or disposal of operating segment

No operating segment was acquired or disposed during the fiscal years ending December 31, 2020, 2019 and 2018. b. incorporation, acquisition or disposal of equity interest

Year ended December 31, 2020

During the fiscal year ending December 31, 2020, there was no constitution, acquisition, or divestment of a corporate stake.

Year ended December 31, 2019

Constitution of corporate stake

Lojas Renner Trading Uruguay S.A.

In September 2019, the Company set up Lojas Renner Trading Uruguay S.A. in order to centralize imports from Asia and sell to the Company's subsidiaries based in Latin America except for Brazil.

Year ended December 31, 2018

Constitution of corporate stake

The Board of Directors approved in December 2018 the constitution of subsidiary of Lojas Renner SA in Argentine for future investments in opening stores in that country. The Company plans the opening of up to three stores in Argentina in the second half of 2019. The stores will be in Buenos Aires and Cordoba, with the same standards and positioning as the countries in which Renner already operates.

c. non-usual events or operations

Year ended December 2020

Covid-19 Impacts

Based on Memorandum Circulars No. 02/20 and No. 03/20 issued by the Brazilian SEC (“CVM”), we took into consideration the economic scenario and the risks and uncertainties arising from Covid-19 impacts. A summary of the main impacts on the financial statements and review of estimates by function of Covid-19.

i) Sales revenue

With the closing of stores along 2020, a major impact was the decrease in revenues, mainly in 2Q. Since 4Q, the Company gradually began to obtain sales of goods revenue that approximates the prior year’s amounts, although still facing the impact of the operation restriction measures. Next is the variation in net consolidated revenue from products and financial services as compared with the prior year (Note 33). ii) Capital management, liquidity risk and covenants

The increase in net debt in the year, represented by the financial leverage ratio, was of 12.95% in 2020 (5.81% in the prior year) and is a reflex of the actions to overcome the impacts of the adverse scenario imposed by Covid-19. The cash generation expected for the subsequent months was sensitized, which led the Company to strengthen its cash, intensifying the use of third- party capital by means of borrowings and financing, which increased as compared with the prior year by R$ 1,739,950. This decision was grounded on the Company’s low financial ratio, in addition to easy access to loan facilities via the financial system (Note 6.3). As a result of these initiatives, the Company ended the year with a comfortable position concerning cash and cash equivalents and short-term investments amounting to R$ 2,672,353.

Despite the decrease in EBITDA and increase in debt, the covenant indicators remained below the thresholds established, with a good security margin.

iii) Accounts receivable and estimated losses

Trade accounts receivable presented a slight decrease of 0.4% as compared with the prior year, mainly due to the lower sales volume in the period and larger coverage of credit losses.

The variables that comprise management’s methodology for measuring estimated losses were reviewed, by means of the projected roll-over of each portfolio range, with reflexes on default and recovery of receivables for the next months, resulting in an increase in coverage (Note 8.3). In 3Q, an increase in credit quality began to be felt, returning to prior-year amounts, in connection with higher recovery levels, the Company’s discount policy and more collection efficiency. Management remains alert, monitoring the economic scenario and assessing any impacts that may affect the performance of the portfolios, consequently measurement of estimated losses.

iv) Inventories and estimated losses

During the year, Company inventories were larger by function of the lower sales volume, however, has been improving its inventory management, by accelerating the use of data for capturing trends, setting up collections, inventory replacement and distribution, having also advanced price markdowns, which resulted, already in the beginning of 4Q20, in quality inventories for end-of-year sales. Furthermore, also increased the number of delivery methods such as drive-thru and mainly ship-from-store, which allowed to have more inventory availability and deliver products faster, thus potentially increasing online sales.

The inventories are safely stored and subject to a low risk of obsolescence in the short term. Inventory losses are estimated based on historical levels and become effective only upon inventory realization. At year end, most of these losses have already been captured, by reason of the counts using the Radio Frequency Product Identification (RFID),and remain in the same historical levels.

The Management concluded that there are no elements to justify the set-up of additional estimated losses and no necessity to change the estimated losses due to the impacts of Covid-19. v) Impairment

Due to Covid-19 impacts, goodwill and indefinite-lived intangible assets of Camicado were subject to impairment testing, as well as other assets included in the consolidation, for which identifiable cash flows are generated separately (CGU) using WACC as discount rate over 10 years.

The conclusion reached was that there are no indications of impairment, since the recoverable amount exceeded book value. vi) Payment of dividends

In view of the pandemic scenario, as a cash preservation measure, in a Board of Directors’ Meeting held on March 30, 2020, the directors approved the review of dividend payment to 25% on 2019 adjusted net profit and prescribed dividends, at the minimum amount provided for in Corporation Law, i.e. R$ 267,654. These dividends were approved in the General Shareholder Meeting on April 29, 2020 and paid on May 08, 2020.

Debentures – 10th debentures issuance

On April 13, 2020, was effective the 10th debentures issuance, in a single series, not convertible into shares, of unsecured, subject to a public offering with restricted distribution efforts, by the Parent Company as approved at the Board of Directors Meeting held on April 06, 2020, in the total amount of R$ 500,000 with interest corresponding up to 100% of "DI Rate", plus a 2.96% rate per annum, maturing on April 13, 2021 that will be destinated to reinforce working capital and maintenance of the strategic minimum cash of the Company.

Debentures – 11th debentures issuance

On May 08, 2020, was effective the 11th debentures issuance, in two series, not convertible into shares, of unsecured, subject to a public offering with restricted distribution efforts, by the Parent Company as approved at the Board of Directors Meeting held on April 29, 2020, in the total amount of R$ 500,000, being the first series of R$ 300,000 with interest corresponding up to 100% of "DI Rate", plus a 3.00% rate per annum, maturing on May 05, 2022, and the second series of R$ 200,000 with interest corresponding up to 100% of "DI Rate", plus a 3.04% rate per annum, maturing on November 05, 2022, that will be destinated to reinforce working capital and maintenance of the strategic minimum cash of the Company.

ICMS in PIS/COFINS base – Parent Company

The lawsuits filed by the parent company claiming recognition of the right to exclude ICMS from the PIS and COFINS base and to offset the unduly-paid amounts was awarded a final unappealable decision in May 2020 in favor of the parent company. The decision issued by the Federal Regional Court – 4th Chapter expressly defines that “for proceedings judged after Supplementary Law 118/2005 (June 9, 2005) came into effect, the period of limitations is of 5 years as from the intended payment refund. This action was filed on 10/10/2006, reason why the amounts recoverable retroact to 11/2001.

Concerning ICMS amounts to be excluded, the decision also expressly “recognizes exclusion of ICMS informed in the invoices on which PIS and COFINS calculations are based, and the right to offset the amounts overpaid and not lapsed”. The amount computed and approved for offset by the Brazilian IRS, for calculation periods 11/2001 to 03/2017, is of R$ 1,363,029 (R$ 784,619 classified as other operating income – Note 34.3 and R$ 578,410 relating to monetary adjustment and interest classified as finance income – Note 35). The amounts referring to 04/2017 (STF decision date) onwards have been recognized in result since then.

The Company analyzed the accounting treatment to be given to this matter, in light of CPC 25, and is of the understanding that this asset is not contingent, since the inflow of economic benefits is practically certain and the offset has already begun.

The respective amounts were measured with reasonable reliability, since the court decision defines the parameterization for measuring the refund amount (offset period and calculation method – ICMS informed). The Company prepared these calculations with the support of a specialized advisory firm, based on the sales files for tax purposes of the entire period, and reconciled with the accounting information and accessory obligations.

The Management expects that the tax credits, whose restated balance on December 31, 2020 net of amounts already offset totals R$ 1,241,314, will be offset until the first quarter of 2022.

Year ended December 2019

Debentures – 9th Issue debentures

The Board of Directors of the Company approved, at a meeting held on March 18, 2019, the 9th (ninth) issue of debentures, in the total amount of R$ 400,000,000.00 (four hundred million reais) not convertible into shares, of unsecured, in a single series, subject to a public offering with restricted distribution efforts, pursuant to Law No. 6,385, of December 7, 1976, as amended by CVM Instruction 476, of January 16, 2009, and other applicable legal and regulatory provisions.

Financial bills

The Company, through its indirect subsidiary Realize CFI, issued Financial bills for private distribution, to finance operations and the ordinary course of business, in the amount of R$ 300,000,000.00 (three hundred million reais) issued on August 12, 2019.

Share Bonus

At an Extraordinary General Meeting held in April, the shareholders approved a 10% share bonus with the issue of 72,002,450 new common shares, being one new common share for every ten existing common shares held on the date in question with an attributed unit cost of R$ 14.44. Shares held as treasury stock, earmarked to the stock option plan, held in the restricted shares plan and as ADRs will also be eligible for the bonus.

Contingent assets - ICMS in PIS and COFINS calculation basis (update)

The Parent company’s lawsuit has already received a favorable decision issued by the Federal Court of the 4th Region, waiting eventual appeal to be presented by the Federal Union in face of of the decision that denied the proceeding or Special Appeal, interposed in view of the decision that under internal appeal, confirmed the denial of the Special Appeal of the Federal Government.

The lawsuit of subsidiary Camicado is awaiting a decision of the Regional Federal Court of the 3rd Region. Both are still pending a final court decision, hence, it is not possible to recognize the asset related to credits to be surveyed beginning as of 5 years preceding the filing of lawsuits up to the period of March 2017 (STF decision date).

Based on preliminary survey, prepared based on information available as of December 31, 2019 and according to court decisions rendered until now (both to determine the exclusion of ICMS highlighted in the invoices), a possible value of credits is estimated at approximately R$ 1,346,972 in the Parent Company and R$ 15,793 in Camicado for such period. The estimated amount may undergo significant changes, since: i) There is no final decision on the request for modulation of effects submitted by the Federal Government in the leading case files and judged in view of general repercussion; ii) There is no definition of how to calculate the exclusion of the ICMS shown on the invoice or the ICMS payable from the PIS/COFINS base; and iii) Decisions in processes in progress may be changed.

Lastly, there is no way to ensure when or whether the estimated amounts will actually be realized.

In relation to amounts related to periods later than STF decision date (March 15, 2017), when likelihood of loss is evaluated by legal advisors as remote, the Company has been recognizing effects on net income.

Year ended December 2018

CONTINGENT ASSETS - ICMS in PIS and COFINS calculation basis

ICMS in PIS and COFINS calculation basis - The Company has lawsuits in progress related to companies Lojas Renner S.A., Camicado and Youcom, for the purpose of obtaining the right to exclude ICMS from PIS and COFINS calculation basis, as well as offsetting amounts unduly paid. Lawsuits have already been favorably decided in Higher Courts, made by the Federal Regional Courts of the 3rd and 4th Regions and await a decision on Amendment of Judgment and/or appeals filed by the Federal Government. The likelihood of gain is assessed by its legal advisors as probable as to the merits and possible regarding the obtaining of patrimonial effects in relation to competencies prior to the date of the STF decision (which on March 15, 2017, decided, with general repercussion that ICMS does not comprise the calculation basis for the purposes of levy of PIS and COFINS).

As Company’s lawsuits are still pending a final court decision, it is not possible to recognize asset related to credits to be surveyed beginning as of 5 years preceding the filing of lawsuits up to the period of March 2017 (STF decision date). Based on preliminary survey, prepared based on information available as of December 31, 2018 and according to court decisions rendered until now, the Company estimates possible value of credits as approximately R$1,300,000 in the Parent Company and R$1,320,000 in Consolidated for such period. However, since there is no final decision on the request for modulation of effects submitted by the Federal Government in the leading case files, which is the subject of general repercussions, and whereas, in addition to modulating effects, the Federal Government also claims the establishment of a calculation method less favorable to the taxpayer (excluding ICMS tax payable from the PIS/COFINS base), the estimated amount may change materially. Lastly, there is no way to ensure when or whether the estimated amounts will actually be realized.

IFRS 16/ CPC 06 (R2) leases

The purpose of the standard IFRS 16/CPC 06 (R2) (applicable as of January 1, 2019) is to unify lease accounting model, requiring lessees to recognize assumed liabilities against respective assets related to their right to use all lease contracts, unless the following characteristics are in the scope that the standard is not applicable:

i) contract with term equal to 12 months or lower; and ii) immaterial amount or is based on variable amounts. During 2018, Lojas Renner S.A. and its subsidiaries evaluated possible impacts from first-time adoption of standard CPC 06 (R2)/IFRS 16 on its financial statements. This evaluation was divided into stages, such as: i) Identification of contracts; ii) Transition approach; iii) Measurement of initial liabilities and initial assets; and iv) Effects in first-time adoption.

In the evaluation carried out by the Company’s Management, it was concluded that lease considerations are currently recorded as occupancy expenses will start to be recognized under “Depreciation” and “Financial expenses”. Although this new pronouncement does not introduce any change to total amount that shall be taken to net income over the contract’s useful life, it is correct to state that a temporal effect will occur mainly in net income due to the method adopted for recognition of interest and monetary restatements associated to leases, despite of no relevant effect as analyses carried out.

On January 1, 2019, the Company’s management will recognize a right of use asset and a lease liability at present value of R$1,719,658 in the Parent Company and R$ 1,993,746 in Consolidated.

10.4 Officers shall comment about: a. significant changes in accounting practices

Fiscal Year ended December 2020

Management identified the need to reassess the Company’s accounting policy for leases, focused on the discount rate used for measuring the contracts, and classification of the exclusive investment fund as a short-term investment in the second quarter of 2020.

i. Leases

In the course of 2019 and in the first quarter of 2020, the Company management used as accounting policy in lease agreements, application of the real rate and real flow, seeking to preserve consistency between flow and rate. However, we should recognize that most companies in the Brazilian market elected to use the nominal incremental rate upon adoption of CPC 06 (R2)/IFRS 16, in line with the international and Brazilian practice, in strict compliance with their requirements, including companies that operate in the same segment as the Company.

In this context, management identified, by function of this comparison, the Company should reevaluate the accounting policy adopted for this matter and began to use nominal incremental rates in its lease agreements, for the primary purpose of aligning the Company’s accounting policy to the practice most commonly adopted by the market, including comparable companies in Brazil and abroad, as well as the international standard. Management is of the understanding that such change brings benefits to the users of the financial statements since, as commented above, this practice allows full alignment with the standard and better comparability with other companies in the market.

Focused on these objectives, management changed the Company’s accounting policy, fully complying with the requirements of CPC 06 (R2)/IFRS 16 concerning use of the nominal incremental rate for discounting flows and restating all comparative amounts in order to reflect this change. ii. Classification of the Exclusive Investment Fund

Management analyzed the breakdown of fund Brasil Plural Retail FI balances and identified the need to change the manner in which this investment fund was presented, Brasil Plural Retail FI partly allocates its assets to bonds whose liquidity is not guaranteed by repurchase agreements by the issuer, but rather by means of the secondary market, reason why, for the purpose of comparison with other assets with the same characteristics such as government bonds, the Company reclassified these amounts from cash equivalents to short-term investments. Worth mentioning, this reclassification has no impact on Company cash management, capital management or debt covenants.

Fiscal Year ended December 2019

IFRS 16 – CPC 06 (R2) With the adoption of IFRS 16 as from January 1, 2019, some changes have been made to the fixed portion of rental payments, classified as leases, requiring recognition of future commitments offset against the right of use in the assets. Until 2018, rental expenses were recorded as “Occupancy”, but are now recognized in the depreciation and finance expenses lines in the accounts.

Fiscal Year ended December 2018

In the fiscal year ended on December 2018 there were no significant changes in accounting practices.

b. significant effects from changes in accounting practices

Fiscal Year ended December 2020

The change in the discount rate of the lease and the classification of the Exclusive Investment Fund mentioned above, did not result in significant effects from changes in accounting pratices.

Fiscal Year ended December 2019

CPC 06 (R2)/IFRS 16 – Lease initial adoption Balance sheet accounts were subject to significant changes due to recognition of future commitments originated from contracts in lease scope. At first-time adoption, right-of-use asset value is equal to lease liabilities payable adjusted at present value, amounting to R$ 1,719,658 in the Parent Company and R$ 1,993,746 in Consolidated.

Beginning as of January 1, 2019, previous balance of leased fixed assets was reclassified to right-of-use asset and financial lease liability was incorporated into leases payable balance.

The Company’s Management chose to use the practical measure for transition and to not consider initial costs for measurement of right-of-use asset corresponds to initial lease liability value plus initial direct costs incurred, thus maintaining the initial lease liability value. Depreciation is calculated using the straight-line method according to the remaining term of contracts.

For the lease liability payable, of contracts that were in the standard’s scope, only minimum fixed rent value was considered as lease component for liability evaluation purposes. The measurement of lease liability corresponds to total future fixed rent 69

payments (gross of taxes), discounted at a interest incremental rate. Considering that all contracts analyzed in the scope of application of the standard are rental agreements that provide for indexation to inflation indexes, and also considering the definition of the standard in the sense that the flows must not contain inflation projections, Company Management defined that the incremental rate to be considered for discounting these flows is a real interest rate, readily observable on the market, plus the Company’s risk spread. This definition of using the real interest rate, in the Company’s assessment, is the one that best reflects the characteristics of its contracts, with annual indexation terms, remaining necessary to “increase” a real interest rate to measure the liability.

Considering the effects on the result, according to IFRS 16 / CPC 06 (R2), the lease payments that were previously recorded as expenses with occupancy were recognized in the accounts of depreciation and financial expenses. Although this new pronouncement did not change the total that will be taken to net income throughout the contract’s useful life, method adopted for recognition of interest and inflation adjustment associated to leases brings a temporal effect in net income, with a decrease of R$ 23.2 million in 2019.

There is a temporary effect on income tax and social contribution, as we recognize a deferred tax asset that will be realized as rent contracts are terminated. For recoverable PIS/COFINS taxes, we continue to recognize credits in net income based on lease payments. On December 31, 2019, the potential credit of PIS and COFINS about the contractual gross flow is R$ 225,206 and when adjusted to present value using the weighted average term is R$ 191,363. c. reservations and emphases present in the auditor's opinion

The Officers announces that there were no reservations and/or emphases present in the auditor's opinions in the disclosures for the 2020, 2019 and 2018 financial years.

10.5 Critical accounting policies

Estimates and critical accounting assumptions

Since the preparation of financial statements requires management's assumptions and estimates related to the probability of future events, affecting the balances of assets and liabilities and other transactions, actual results may differ from these estimates.

Significant accounting estimates are essential to produce the best possible information on Profit or Loss and Equity, even with the subjectivity, complexity, and non-precision, and have a significant impact on:

Provision for credit losses

Estimated credit losses are recorded using the general model of the CPC 48/ IFRS 9 methodology. The model adopted by the Company is based on measurement of expected loss, by observing the portfolio’s operating efficiency, in recovering and granting credit, taking into consideration the probability of and exposure to default and effective loss in each late-payment bracket over the entire operation term.

This method consists in classifying the operations, taking into consideration their segregation into portfolios (Renner credit card and Meu Cartão) and sub segmentation in each homogenous risk group (such as per customer profile, score, among others), considering the following calculation components:

PD EAD LGD = ECL (Probability of Default) (Exposure At Default) (Loss Given Default) (Expected Credit Loss)

PROBABILITY OF DEFAULT EXPOSURE TO DEFAULT LOSS GIVEN DEFAULT EXPECTED CREDIT LOSS

Probability that the customer will Maximum exposure to loss upon Proportion of the amount not not comply with his payment default also considering the recovered after performance of all obligations in a certain period of projected use of limits available. efforts to recover the receivables. time.

Provision for estimated credit losses is the total considered sufficient by management to cover any losses on realization of receivables based on customer portfolio analysis.

Provision for losses on inventory

Based on historical levels for the Company’s losses. These will only occur with the realization of the inventory, reflecting the Company’s operational model and serving as a basis for restating losses provisions. In addiction during 2019, we implemented the RFID project (Radio Frequency Product Identification), a tool that allows the location, count, and key information of products to be identified quickly and accurately. Thus, it was already possible to increase the frequency of reading and recognizing the effects of inventories within the year, at the Parent Company.

Discount rate applied to adjustments in the present value

The discount rate used since July 1st, 2020 in the adjustment to present value of accounts receivable is the Anticipation Rate for credit card bills and for inventory and suppliers is the average discount rate, both observable in the market informed by the Central Bank of Brazil. The rate used previously was the weighted average cost of capital.

The discount rate used are in the table below:

Accounts Receivable Suppliers Inventories Parent Company Subsidiaries Parent Company Subsidiaries Parent Company Subsidiaries Period Rate % (p.m.) Rate % (p.m.) Rate % (p.m.) Rate % (p.m.) Rate % (p.m.) Rate % (p.m.) 2020 0.63 0.63 1.14 1.14 1.14 1.14 2019 0.99 0.99 0.99 0.99 0.99 0.99 2018 0.99 0.99 0.99 0.99 0.99 0.99

For the purpose of leases payable concerning the contracts that were within the scope of CPC 06 (R2)/IFRS 16, only minimum fixed rent amount was considered to be a lease component for liability evaluation purposes. Measurement of lease liabilities corresponds to total future fixed rent payments (gross of taxes), discounted at an incremental interest rate. Management identified the necessity of reassess the Company’s accounting policy, having begun to use nominal discount rates for measuring its lease agreements, focusing in aligning this accounting policy to the practice most commonly adopted in the market, including comparable companies in Brazil and abroad. The nominal discount rate corresponds to reference market rates plus risk spread for fund-raising at amounts that represent total investments for opening new stores.

Realization of deferred income tax and social contribution The recoverability of deferred tax asset balances is reviewed at the end of each year and, when it is no longer probable that future taxable profits will be available to recover the asset, in whole or in part. Management’s evaluation is based on technical feasibility studies, which demonstrate projections of future taxable earnings, allowing for an estimate of the recovery of credits within a period of no more than 10 years. Also, estimated deferred tax realization involves uncertainties of other estimates.

Verification of the useful life of the fixed and intangible assets The useful life of the fixed and intangible assets is reviewed annually based on technical evaluations of specialists.

Evaluation of impairment of intangible assets with an indeterminate useful life

To determine the recoverable value the Company used cash flow projections, before income tax and social contribution, based on financial budgets approved by management for a 10-year period considering the following assumptions: revenues, costs and expenses projected from 2021 to 2030, discount rate of 13.0% p.a. on 2020 (13.0% p.a. on December 31, 2019 and 12.6% p.a. on December 31, 2018) and growth rate in perpetuity of 6.5% p.a. on 2020 (6,5% p.a. on December 31, 2019 and 7.5% p.a. on December 31, 2018), inflation rates, among others.

Provision for tax, civil and labor risks

The constitution of a provision in an amount considered sufficient to cover eventual losses from pending court proceedings, restated to the dates of the balance sheets, is based on information provided by the Company’s legal advisers. However, in the light of the ongoing nature of the proceedings, classification of probability of loss cannot be definitive until their conclusion.

These provisions take into consideration individuality of each process, classification of loss, and internal and external legal advisors’ evaluation. For proceedings classified as possible loss, the management records a provision at the estimated amounts of court costs and attorney fees based on the history incurred and current contractual bases negotiated with its legal advisors,

because the future disbursements of funds is likely. For proceedings rated as probable loss, provisions are recorded in the full amount of the risk measured.

Civil and labor provisions are periodically reviewed, considering the development of lawsuits, and the history of effectively settled amounts since an outflow of funds is likely in order to comply with these obligations.

Determination of fair values of derivative financial instruments and stock option plans

The discounted cash flow method is used to measure fair value of financial assets and liabilities, whose assumption is present value of estimated cash flows based on future market quotations. For financial assets and liabilities whose book balances are reasonably close to fair value, fair values are not determined, as established in CPC 40/ IFRS 7.

For determining the fair value of granted stock option plans, the Company adopted assumptions such as:

a) Exercise value of option: weighted average rate over the last 30 share trading sessions of Lojas Renner S.A before the grant date. b) Share price volatility: weighting of the trading history of the Company’s share. c) Risk-free interest rate: using Interbank Deposit Certificate (CDI) available on the grant date and projected for the maximum grace period of the option. d) Estimated dividend: payment of dividends per share in relation to the market value of shares on the grant date. e) Vesting period: maximum period for beneficiaries to exercise their options.

10.6 Relevant items that have not been emphasized in issuer’s financial statements a. assets and liabilities directly or indirectly held by the issuer, which are not included in its balance sheet (off-balance sheet items), such as:

1. operating leasing payable and receivable

2. portfolios of receivables written-off over which entity maintains risks and liabilities, indicating the respective liabilities

3. agreements for future purchase and sale of goods or services

4. unfinished construction agreements

5. agreements for future receipts of financings

There are no relevant assets and liabilities that were not reflected in Company’s explanatory notes to the consolidated financial statements for the years 2020, 2019 and 2018. b. other items not emphasized in the financial statements

There are no relevant other item not emphasized that were not reflected in Company’s explanatory notes to the consolidated financial statements for the years 2020, 2019 and 2018.

10.7 Concerning each one of the items not emphasized in the financial statements mentioned in item 10.8, officers shall comment about a. how such items change or may change revenues, expenses, operating income, financial expenses or other items of the issuer’s financial statements

Not applicable, because the Executive Board understands that there are no relevant assets and liabilities that were not reflected in Company’s consolidated financial statements for the years 2020, 2019 and 2018. b. nature and purpose of the operation

10.8 Business plan a. investments, including: (i) quantitative and qualitative description of ongoing investments and expected investments; (ii) investments financing sources; (iii) relevant ongoing divestitures and expected divestitures

In order to support the investments, forecast in the Company’s expansion plan of 2021, Management is proposing the retention of 64.3% of the net income for year 2020 in amount of R$ 704.7 million, on December 31 2020 totaling R$ 1,421.8 million in the account of Reserve for Investments and Expansion.

The following table presents the Company’s capital expenditures budget for year 2021. Financing Sources R$ Million Remaining balance profit reserves for investment and expansion - after AGM de 04/29/2020 717.1 Constitution for profit reserve for investment and expansion – 2020 704.7 Retained profits in reserve for investment and expansion 12/31/2020 1,421.8 Capital Expenditure Budget – Investment of Resources Forecast 2021 Investments in Fixed Assets (914.1) New Stores (201.2) Remodeling and Upgrading (90.5) IT Systems and Equipment (325.3) Logistics (296.3) Others (0.8) Investments in Subsidiaries (185.9) Total Investments in Fixed Capital (1,100.0) Investments in Working Capital (154.9) Total Investment of Resources - Forecast 2021 (1,254.9)

The Company’s Management believes as necessary the maintenance of the Earnings Reserve for Investment and Expansion at current levels, including the retained earnings reported for the year 2020, which will be added to operating cash generation for the year 2021 to support the expansion plan to be implemented in the current year.

b. as long as already disclosed, indicate the acquisition of plants, equipment, patents or other assets that might materially influence the issuer’s production capacity

2020 stores opened:

Lojas Renner S.A.

Nro. Date Estate City Location Seq. Total area (m2)

1 11/17/2020 SP São Paulo Shopping Ibirapuera 1,873.2

2 10/20/2020 RJ Rio de Janeiro Village Mall 1,435.2

3 09/29/2020 SP São Paulo Aeroporto Guarulhos 1,075.7

4 09/22/2020 MT Sorriso Park Shopping Sorriso 1,818.4

5 08/11/2020 MT Tangará da Serra Tangará Shopping Center 1,507.8

6 08/04/2020 GO Jataí Jatahy Shopping 2,039.1

7 08/01/2020 BA Lauro de Freitas Parque Shopping Bahia 2,902.2

Maxmix Comercial Ltda. (Camicado)

Nro. Date Estate City Location Seq. Total area (m2)

1 08/08/2020 SP Piracicaba Shopping Piracicaba 470.7

2 03/17/2020 BA Lauro de Freitas Parque Shopping Bahia 375.95

Fashion Business Comércio de Roupas Ltda (Youcom)

Nro. Date Estate City Location Seq. Total area (m2)

1 08/27/2020 RJ Rio de Janeiro Barra Shopping 278.1

2 08/20/2020 PE Recife Shopping Recife 219.2

c. new products and services, indicating the following: (i) description of surveys in progress already disclosed; (ii) total amounts spent by the issuer in surveys for development of new products and services; (iii) projects under development already disclosed; (iv) total amounts spent by the issuer in development of new products and services

There are no new projects with relevant investments other than the aforementioned ones.

10.9 Comment about other factors that have influenced in a relevant manner the operating performance and that have not been identified or commented in the other items of this section

All information relevant and pertinent to this topic has been mentioned in the items above.

ATTACHMENT III FINANCIAL STATEMENTS AND EXPLANATORY NOTES

BALANCE SHEETS Lojas Renner S.A. and subsidiaries On December 31, 2020 and 2019 (All amounts in thousands of Reais)

Parent Company Consolidated

Note 12/31/2020 12/31/2019 12/31/2020 12/31/2019

Assets Restated (*) Restated (*)

Current assets

Cash and cash equivalents 7.2 1,761,439 844,755 2,066,781 980,954

Interest-earning bank deposits 7.3 139,212 167,099 605,572 391,348

Trade accounts receivable 8.2 1,839,223 1,912,774 3,811,668 3,825,961

Inventories 9.2 1,152,239 915,848 1,381,662 1,124,506

Taxes recoverable 10 863,933 199,116 961,997 258,396

Derivative financial instruments 24.4 4,896 4,244 5,435 4,382

Other assets 11 46,093 53,195 63,651 70,662

Credits with related parties 26.3.2 18,215 12,221 - -

Total current assets 5,825,250 4,109,252 8,896,766 6,656,209 Non-current assets

Long-term receivables

Taxes recoverable 10 636,111 51,326 661,111 73,345

Credits with related parties 26.3.2 1,358 1,098 - -

Deferred income tax and social contribution 12.2 103,790 89,469 276,925 214,505

Other assets 11 10,047 13,218 12,847 16,208

Total long-term assets 751,306 155,111 950,883 304,058

Investments 13 1,595,255 1,383,276 - -

Fixed assets 14.2 1,786,396 1,814,253 2,154,260 2,173,710

Rights of use 15.2 1,397,843 1,344,150 1,700,038 1,634,690

Intangible assets 14.4 587,713 469,711 940,636 784,235

Total non-current assets 6,118,513 5,166,501 5,745,817 4,896,693

Total assets 11,943,763 9,275,753 14,642,583 11,552,902

(*) These statements present the balances mentioned in Note 3.6.1.

Management's explanatory notes are an integral part of the individual and consolidated financial statements.

BALANCE SHEETS Lojas Renner S.A. and subsidiaries On December 31, 2020 and 2019 (All amounts in thousands of Reais)

Parent Company Consolidated Note 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Liabilities and shareholders' equity Restated (*) Restated (*) Current liabilities Borrowings, financing and debentures 17.2 1,037,626 594,394 1,077,081 709,022 Financing - financial service operations 18 - 37,740 341,390 184,996 Leases payable 19.2 410,998 373,555 496,583 447,685 Suppliers 20.2 1,208,337 953,371 1,404,852 1,081,785 Obligations with credit card administrators 15,711 26,919 1,193,168 985,298 Tax obligations 21 366,320 466,977 402,930 636,723 Social and labor obligations 22 193,403 276,548 226,816 306,882 Statutory obligations 246,269 243,114 246,269 243,114 Provisions for risks 23.2 52,104 57,914 67,059 67,635 Derivative financial instruments 24.4 30,327 6,680 31,428 7,764 Debits with related parties 26.3.2 1,445 1,279 - - Other obligations 25 64,571 55,610 145,835 94,413 Total current liabilities 3,627,111 3,094,101 5,633,411 4,765,317

Non-current liabilities Borrowings, financing and debentures 17.2 1,545,933 406,086 1,545,933 444,641 Financing - financial service operations 18 - - 420,575 306,370 Leases payable 19.2 1,120,649 1,060,869 1,365,804 1,291,676 Suppliers 20.2 95,503 - 95,503 - Deferred income tax and social contribution 12.2 - - - 5,287 Provisions for risks 23.2 53,251 23,431 55,237 24,481 Other obligations 25 - 247 24,804 24,111 Total non-current liabilities 2,815,336 1,490,633 3,507,856 2,096,566 Total liabilities 6,442,447 4,584,734 9,141,267 6,861,883

Shareholders' Equity Capital 27.1 3,805,326 3,795,634 3,805,326 3,795,634 Treasury shares 27.2 (119,461) (35,549) (119,461) (35,549) Capital reserves 27.3 94,031 74,227 94,031 74,227 Profit reserves 27.4 1,694,515 869,896 1,694,515 869,896 Other comprehensive income 27.5 26,905 (13,189) 26,905 (13,189) Total shareholders' equity 5,501,316 4,691,019 5,501,316 4,691,019 Total liabilities and shareholders' equity 11,943,763 9,275,753 14,642,583 11,552,902

(*) These statements present the balances mentioned in Note 3.6.1.

Management's explanatory notes are an integral part of the individual and consolidated financial statements.

STATEMENTS OF NET INCOME Lojas Renner S.A. and subsidiaries For the years ended December 31, 2020 and 2019 (In thousands of reais, except net income per share in Reais)

Parent Company Consolidated Not e 2020 2019 2020 2019 Restated (*) Restated (*) Net operating revenue 5,853,395 7,893,166 7,537,180 9,588,437

Sales of goods 33.2 5,822,002 7,656,754 6,660,571 8,474,693

Financial products and services 33.2 31,393 236,412 876,609 1,113,744

Costs of sales (2,837,106) (3,395,245) (3,223,570) (3,730,521) Sales of goods (2,837,106) (3,383,052) (3,201,309) (3,707,306) Financial products and services - (12,193) (22,261) (23,215)

Gross income 3,016,289 4,497,921 4,313,610 5,857,916

Sales 34.1 (2,041,170) (2,122,885) (2,468,018) (2,505,821) General and administrative expenses 34.2 (763,428) (786,127) (885,233) (879,264) Losses on receivables, net 98,296 (62,306) (412,636) (381,049) Other operating income 34.3 608,174 (231,729) 309,156 (415,405)

Equity on profit/loss of subsidiaries 13 (63,663) 214,733 - -

Net operating expenses (2,161,791) (2,988,314) (3,456,731) (4,181,539)

Operating income before finance income 854,498 1,509,607 856,879 1,676,377

Financial revenues 35 618,347 31,344 712,925 74,422 Financial expenses 35 (242,451) (188,137) (369,043) (258,817)

Net financial income 375,896 (156,793) 343,882 (184,395)

Income before income tax and social contribution 1,230,394 1,352,814 1,200,761 1,491,982

Current 12.5 (140,628) (284,753) (162,813) (472,822)

Deferred 12.5 6,503 18,140 58,321 67,041 Income tax and social contribution, net (134,125) (266,613) (104,492) (405,781)

Net income for the year 1,096,269 1,086,201 1,096,269 1,086,201

Basic earnings per share - R$ 29 1.3828 1.4142 1.3828 1.4142

Net earnings per share - diluted - R$ 29 1.3795 1.4079 1.3795 1.4079

Number of shares at end of year (in thousands) 796,170 795,558 796,170 795,558

(*) These statements present the balances mentioned in Note 3.6.1.

Management's explanatory notes are an integral part of the individual and consolidated financial statements.

STATEMENTS OF COMPREHENSIVE INCOME

Lojas Renner S.A. and subsidiaries

For the years ended December 31, 2020 and 2019

(All amounts in thousands of Reais)

Parent Company Consolidated

2020 2019 2020 2019 Restated

(*) Restated (*)

Net income for the year 1,096,269 1,086,201 1,096,269 1,086,201

Equity valuation adjustments

Items that will not be reclassified to net income (14,924) 181 (14,924) 181

Cash flow hedge (22,995) 360 (22,612) 274

Taxes related to net income from cash flow hedge 7,818 (122) 7,688 (93)

Cash flow hedge in subsidiaries, net of taxes 253 (57) - -

Accumulated translation adjustments and monetary adjustments

Items that may subsequently be reclassified to equity 55,018 (15,518) 55,018 (15,518) Accumulated translation adjustments and monetary adjustments due to hyperinflation 55,018 (15,518) 55,018 (15,518)

Other components of comprehensive income 40,094 (15,337) 40,094 (15,337)

Total comprehensive income for the year 1,136,363 1,070,864 1,136,363 1,070,864

(*) These statements present the balances mentioned in Note 3.6.1. Management's explanatory notes are an integral part of the individual and consolidated financial statements.

STATEMENTS OF CASH FLOWS

Lojas Renner S.A. and subsidiaries For the years ended December 31, 2020 and 2019 (All amounts in thousands of Reais)

Parent Company Consolidated 2020 2019 2020 2019 Cash flows from operating activities Restated (*) Restated (*) Net income for the year 1,096,269 1,086,201 1,096,269 1,086,201 Adjustments to reconcile net income to cash and cash equivalents from investing activities: Depreciation and amortization 647,843 598,042 791,036 694,712 Interest and structuring costs on borrowings and leases 212,725 183,477 238,548 208,449 Financing interest on operating services 2,561 - 29,708 - Equity on profit/loss of subsidiaries 63,663 (214,733) - - Income tax and social contribution 134,125 266,613 104,492 405,781 (Reversals) estimated losses on assets, net (33,843) (64,150) 117,371 91,705 Exclusion of ICMS from PIS and COFINS base (1,363,029) - (1,363,029) - Discounts - leases payable (104,488) - (128,927) - Other net income adjustments 67,836 59,880 95,560 65,847 Adjusted net income 723,662 1,915,330 981,028 2,552,695

Dividends received from subsidiaries 6,926 14,348 - -

(Increase) decrease in assets Trade accounts receivable 115,370 (334,964) (95,712) (783,799) Inventories (247,550) 70,263 (265,461) 28,993 Taxes recoverable 92,855 (87,621) 75,502 (44,574) Other assets 9,736 7,100 (1,287) (26,814) Increase (Decrease) in liabilities Suppliers 341,980 50,784 419,457 59,255 Financiang - financial service operations - 91,303 - (360,220) Obligations with credit card administrators (11,208) 8,565 207,870 291,302 Tax obligations (76,895) (40,741) (124,919) (83,629) Other obligations (74,776) 45,903 (18,251) 86,741 Payment of income tax and social contribution (164,391) (194,002) (296,099) (302,474) Interest paid on borrowings and debentures (47,643) (40,661) (49,224) (43,675) Interest paid on operating service financing (10,301) - (10,301) - Net cash generated in operating activities, before interest-earning bank deposits 657,765 1,505,607 822,603 1,373,801 Increase in interest-earning bank deposits 27,887 (7,558) (214,224) 207,886 Net cash generated in operating activities 685,652 1,498,049 608,379 1,581,687

Cash flows from investment activities Acquisition of fixed and intangible assets (443,982) (553,032) (543,976) (751,428) Receipts due to sale of fixed assets 147 40,726 147 1,155 Capital contribution in subsidiaries (227,297) (241,724) - - Net cash consumed by investing activities (671,132) (754,030) (543,829) (750,273)

Cash flows from financing activities Capital increase 9,692 46,111 9,692 46,111 Repurchase of shares (96,964) 4 (96,964) 4 Borrowings raised 2,499,466 584,515 3,467,279 724,681 Amortization of borrowings and debentures (987,178) (510,710) (1,787,961) (632,928) Consideration relating to leases payable (279,017) (326,864) (334,911) (376,500) Interest on equity and dividends paid (243,835) (409,081) (243,835) (409,081) Net cash generated in (consumed by) financing activities 902,164 (616,025) 1,013,300 (647,713)

Effect of exchange flucatuation on cash and cash equivalents - - 7,977 12,123

Increase in cash and cash equivalents 916,684 127,994 1,085,827 195,824

Cash and cash equivalents at beginning of year 844,755 716,761 980,954 785,130 Cash and cash equivalents at end of year 1,761,439 844,755 2,066,781 980,954 (*) These statements present the balances mentioned in Note 3.6.1.

Management's explanatory notes are an integral part of the individual and consolidated financial statements.

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - PARENT COMPANY AND CONSOLIDATED

Lojas Renner S.A.

On December 31, 2020 and 2019 (Amounts expressed in thousands of reais, except interest on own capital per share in Reais)

Capital reserves Profit reserves Stock option plan reserve Reserve for and investment Additional Other Treasury restricted Legal and Tax incentive dividend comprehensive Retained Note Capital shares shares plan reserve expansion reserve proposed income earnings Total Restated Restated (*) Restated (*) (*)

Balance at January 1, 2019 2,637,473 (44,536) 124,093 87,641 946,514 56,540 144,639 2,148 - 3,954,512

Net income for the year ------1,086,201 1,086,201

Capital increase 27.1 1,158,161 - (72,050) (87,641) (895,819) (56,540) - - - 46,111 Disposal/Transfer of shares 27.2 - 8,987 (8,983) ------4 Stock option plan 30 - - 21,074 ------21,074 Restricted share plan 31 - - 10,093 ------10,093 Equity adjustments ------181 - 181 Accumulated translation adjustments ------(34,930) - (34,930) Monetary adjustments due to hyperinflation ------19,412 - 19,412 Deliberation on additional proposed ------(144,639) - - (144,639) dividends 28.2 Dividends prescribed ------327 327 Allocation of profit: - - - 54,955 384,161 97,539 282,546 - (1,086,528) (267,327) Legal reserve 27.4.1 - - - 54,955 - - - - (54,955) - Reserve for investment and expansion 27.4.2 - - - - 384,161 - - - (384,161) - Tax incentive reserve 27.4.3 - - - - - 97,539 - - (97,539) - Dividends (R$ 0.375338 per share) 28.2 ------282,546 - (297,916) (15,370) Interest on equity (R$ 0.326461 per share) 28.2 ------(251,957) (251,957) Saldo em 31 de dezembro de 2019 3,795,634 (35,549) 74,227 54,955 434,856 97,539 282,546 (13,189) - 4,691,019 (*) These statements present the balances mentioned in Note 3.6.1. Management's explanatory notes are an integral part of the individual and consolidated financial statements.

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - PARENT COMPANY AND CONSOLIDATED

Lojas Renner S.A.

On December 31, 2020 and 2019 (Amounts expressed in thousands of reais, except interest on own capital per share in Reais)

Capital reserves Profit reserves Stock option plan Reserve for reserve and investment Tax Additional Other Treasury restricted Legal and incentive dividend comprehensive Retained Note Capital shares shares plan reserve expansion reserve proposed income earnings Total

Balance at January 1, 2020 3,795,634 (35,549) 74,227 54,955 434,856 97,539 282,546 (13,189) - 4,691,019

Net income for the year ------1,096,269 1,096,269 Capital increase 27.1 9,692 ------9,692 Repurchase of shares 27.2 - (96,964) ------(96,964) Disposal/Transfer of shares 27.2 - 13,052 (13,052) ------Stock option plan 30 - - 22,832 ------22,832 Restricted share plan 31 - - 10,024 ------10,024 Equity adjustments ------(14,924) - (14,924) Accumulated translation adjustments ------10,205 - 10,205 Monetary adjustments due to hyperinflation ------44,813 - 44,813 Reserve for investment and expansion 27.4.2 282,221 (282,221) - Deliberation on additional proposed dividends 28.2 (325) (325) Dividends prescribed ------191 191 Allocation of profit: - - - 54,813 704,667 65,273 191 - (1,096,460) (271,516) Legal reserve 27.4.1 - - - 54,813 - - - - (54,813) - Reserve for investment and expansion 27.4.2 - - - - 704,667 - - - (704,667) - Tax incentive reserve 27.4.3 - - - - - 65,273 - - (65,273) - Dividends (R$ 0.038952 per share) 28.2 ------191 - (30,889) (30,698) Interest on equity (R$ 0.303839 per share) 28.2 ------(240,818) (240,818) Balance at December 31, 2020 3,805,326 (119,461) 94,031 109,768 1,421,744 162,812 191 26,905 - 5,501,316

Management's explanatory notes are an integral part of the individual and consolidated financial statements.

STATEMENTS OF ADDED VALUE Lojas Renner S.A. and subsidiaries For the years ended December 31, 2020 and 2019 (All amounts in thousands of Reais)

Parent Company Consolidated 2020 2019 2020 2019 Restated (*) Restated (*) ( + ) Revenues 8,569,043 10,337,962 9,995,026 11,981,576 Sales of goods, net of cancellations and returns 7,605,783 10,047,479 8,641,516 11,075,280 Financial products and services 39,278 257,745 933,234 1,182,637

Estimated credit losses, net 98,296 (412,636) (62,306) (381,049) Other revenues 825,686 95,044 832,912 104,708 ( - ) Inputs acquired from third parties (4,565,232) (5,120,986) (5,406,310) (5,773,244) Cost of sales of goods and services rendered (including taxes) (3,239,976) (3,862,714) (3,658,781) (4,219,379)

Energy, third-party services and other expenses (1,668,259) (1,258,188) (1,181,226) (1,467,856)

Losses on realization of other assets, net (79,270) (67,068) (77,046) (86,009) ( = ) Gross value added 4,003,811 5,216,976 4,588,716 6,208,332 ( - ) Retentions (647,843) (598,042) (791,036) (694,712)

Depreciation and amortization (791,036) (647,843) (598,042) (694,712) ( = ) Net value added produced by Entity 3,355,968 4,618,934 3,797,680 5,513,620 ( + ) Added value received as transfer 583,793 247,520 742,096 76,054

Equity on profit/loss of subsidiaries 214,733 - - (63,663) Financial revenues, gross of taxes 647,456 32,787 742,096 76,054 ( = ) Total added value to be distributed 3,939,761 4,866,454 4,539,776 5,589,674

( = ) Distribution of value added 3,939,761 4,866,454 4,539,776 5,589,674 Personal 878,827 1,075,638 1,099,119 1,259,051 Direct remuneration 649,658 812,181 840,972 966,448 Benefits 125,994 147,520 144,900 165,866 FGTS 59,022 71,472 67,778 81,304 Other 44,153 44,465 45,469 45,433 Stock option plan 22,831 21,075 22,831 21,075 Management remuneration 21,322 23,390 22,638 24,358 Taxes, rates and contributions 1,597,204 2,282,594 1,808,080 2,681,990 Federal taxes 522,573 802,909 596,508 1,047,622 State taxes 1,020,090 1,426,707 1,137,003 1,562,922 Municipal taxes 54,541 52,978 74,569 71,446 Remuneration of third party’s capital 367,461 422,021 536,308 562,432 Financial expenses 252,665 193,932 381,343 264,945 Occupancy expenses 114,796 228,089 154,965 297,487 Remuneration of own capital 1,096,269 1,086,201 1,096,269 1,086,201 Interest on own capital and dividends proposed 271,516 267,327 271,516 267,327 Retained earnings 824,753 536,655 824,753 536,655 Additional dividend proposed - 282,219 - 282,219

(*) These statements present the balances mentioned in Note 3.6.1.

Management's explanatory notes are an integral part of the individual and consolidated financial statements.

Note 24.1 – ACCOUNTING Note 15 – Note 6 – RISK POLICE RIGHTS- MANAGEMENT OF-USE Note 19 – LEASES Note 24 – PAYABLE FINANCIAL INSTRUMENTS LEASE FINANCIAL IFRS 16 INSTRUMENTS / RISK MANAGEMENT

Note 8 - TRADE Note 10 – ACCOUNTS RECOVERABLE RECEIVABLE TAXES

TAX

Note 9 - KEY EXPLANATORY NOTES INVENTORIES TRADES/

INVENTORIES / INCOME TAX SUPPLIERS This interactive tool offers a thematic overview of AND SOCIAL the key explanatory notes and can guide your CONTRIBUTION readind by theme. Note 20 – TRADE To return to this page, click on the “BACK TO ACCOUNTS MAP” button in the lower left corner. PAYABLE Note 18 – FINANCING – FINANCIAL SERVICE OPERATIONS AND GUARANTEES CASH AND EQUIVALENTS / Note 2 - Note 17 – BUSINESS DEBTS / LOANS HIGHLIGHTS BORROWINGS, FINANCING Note 16 – AND IMPAIRMENT DEBENTURES Note 3.9 – Note 7.2 – IMPACTS BREAKDOWN OF Note 26 – OF COVID- CASH AND CASH TRANSACTIONS Note 34 – 19 EQUIVALENTS WITH RELATED EXPENSES PER PARTIES NATURE

Note 7.3 – Note 38 – BREAKDOWN OF EVENTS AFTER Note 32 – INTEREST-EARNING INFORMATION BANK DEPOSITS THE REPORTING PER BUSINESS PERIOD SEGMENT

1 OPERATIONS

Lojas Renner S.A. (“Parent Company”) - corporation with head office at Av. Joaquim Porto Villanova, 401, Porto Alegre (RS), listed in B3 S.A.- Brasil, Bolsa e Balcão under the code LREN3 and its direct and indirect subsidiaries, individually or jointly (the “Company” or the “Consolidated”), are mainly engaged in:

i) Retail: trade of clothes and sports products, shoes, accessories, perfumery, housewares, towels & linen, furniture, and decoration articles; and ii) Financial services: quick withdrawals, financing of purchases, insurance, and the practice of asset and liability operations inherent to credit companies.

2 HIGHLIGHTS

Below, management emphasizes certain important matters in this disclosure:

2.1 IMPACTS OF COVID-19

Based on Memorandum Circulars No. 02/2020 and No. 03/2020 issued by the Brazilian SEC (“CVM”) and taking into consideration the economic scenario and the risks and uncertainties arising from Covid-19 impacts, Note 3.9 presents the measures adopted and management’s assessment.

2.2 ISSUE OF DEBENTURES

In the second quarter of 2020, the 10th and 11th issue of the Parent Company debentures took place. For further information on these debentures and amount, please refer to Note 17.2.

2.3 ICMS IN THE PIS/COFINS TAX BASE

In May 2020, a final decision was handed down on the Parent Company lawsuit, granting the exclusion of ICMS from the PIS and COFINS tax base. The Company management also considers CVM/SNC/SEP memorandum circular 01/2021 observing the qualitative and quantitative aspects on this topic. Further details are presented in Note 10.

2.4 AMENDMENT TO IFRS 16 AND CVM RESOLUTION 859/2020

In May 2020, the IASB issued an amendment to IFRS 16, which provides for a practical expedient that allows lessees to account for the benefits granted in P&L over the period impacted by the Covid-19 pandemic. On July 7, 2020, by means of Resolution No. 859/2020, CVM approved changes in Accounting Pronouncement CPC 06 (R2) – Leases, equivalent to the amendment to IFRS 16 issued by the IASB. Further information in Note 5.3.

2.5 CHANGES IN COMPARATIVE AMOUNTS

In the second quarter of 2020, management reassessed the Company’s accounting policy for leases, focused on the discount rate used for measuring the contracts, and classification of the exclusive investment fund as a short-term investment. Further information in Note 3.6.1.

3 BASIS FOR PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS

3.1 STATEMENT OF COMPLIANCE

These financial statements were approved by Company’s management on February 11, 2021, and were prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and also in accordance with the accounting practices adopted in Brazil (BR GAAP), considering pronouncements, guidance and interpretations issued by the Brazilian Accounting Pronouncements Committee (“CPC”), approved by the Brazilian Securities and Exchange Commission (CVM) and the provisions of Corporation Law.

3.2 STATEMENT OF RELEVANCE

Company management affirms that they applied technical guideline OCPC 7 and CVM Resolution 727/2014 by complying with the minimum requirements and disclosing only relevant information that helps users make decisions. Therefore, all relevant information used in business management is highlighted in this document.

3.3 BASIS OF MEASUREMENT

These financial statements were measured considering the historical cost as a basis of value, except for certain financial instruments measured at their fair values (Note 24.3).

3.4 FUNCTIONAL AND PRESENTATION CURRENCY

The financial statements are presented in Real (R$), functional currency of the Company and balances were rounded to the nearest thousand value, except otherwise indicated.

For foreign subsidiaries operating in a stable economic environment and with a different functional currency from the Parent Company, the statements of income statements are translated into Brazilian Reais at the average monthly exchange rate, assets and liabilities are translated at the closing rate and equity items are translated at the historical rate. For subsidiaries operating in a hyperinflationary environment, the balances of assets, liabilities and retained earnings are translated at the closing rate.

3.5 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

Estimate Note Estimated credit losses 8.3 Estimated inventory losses 9.3 Discount rate applied to adjustments to present value 8.1, 9.1, 19.1 and 20.1 Realization of deferred income and social contribution taxes 12.4 Definition of the useful life of fixed and intangible assets 14.1 Evaluation of impairment of intangible assets with an indefinite useful life 16.1 Provisions for tax, civil and labor risks 23.1 Determination of fair values of derivative financial instruments and stock option plans 24.3 and 30.4

3.6 ACCOUNTING POLICIES

Significant accounting policies used in the preparation of these financial statements are presented and summarized in respective notes and have been consistently applied in the periods.

Change in comparative amounts

3.6.1.1 Leases

3.6.1.2 Classification of the Exclusive Investment Fund

Restatement of amounts previously disclosed whose effects are not considered material

Pursuant to CPC 23/IAS 8, Company management is presenting the impacts and restating the balance sheet, income statement, statement of comprehensive income, statement of value added, statement of changes in equity, statement of cash flow and in the explanatory notes for the year ended 2019 affected by such restatement.

3.6.2.1 Impact on the balance sheet

Parent Company 12/31/2019 Note Disclosed Adjustment Restated

Assets Current assets 4,109,252 - 4,109,252 Cash and cash equivalents 3.6.1.2 1,011,854 (167,099) 844,755 Interest-earning bank deposits 3.6.1.2 - 167,099 167,099 Other current assets 3,097,398 - 3,097,398 Noncurrent assets 5,353,003 (186,502) 5,166,501 Deferred income and social contribution taxes 3.6.1.1 83,401 6,068 89,469 Investments 3.6.1.1 1,385,092 (1,816) 1,383,276 Rights-of-use 3.6.1.1 1,534,904 (190,754) 1,344,150 Rental subject to purchase option right (*) 26,402 - 26,402 Rentals 3.6.1.1 1,508,502 (190,754) 1,317,748 Other noncurrent assets 2,349,606 - 2,349,606 Total assets 9,462,255 (186,502) 9,275,753 Liabilities and equity Current liabilities 3,098,029 (3,928) 3,094,101 Leases payable 3.6.1.1 377,777 (4,222) 373,555 Rental subject to purchase option right (*) 4,184 - 4,184 Rentals 3.6.1.1 373,593 (4,222) 369,371 Trade accounts payable 3.6.1.1 953,077 294 953,371 Other current liabilities 1,767,175 - 1,767,175 Noncurrent liabilities 1,659,612 (168,979) 1,490,633 Leases payable 3.6.1.1 1,229,848 (168,979) 1,060,869 Rental subject to purchase option right (*) 31,244 - 31,244 Rentals 3.6.1.1 1,198,604 (168,979) 1,029,625 Other noncurrent liabilities 429,764 - 429,764 Total liabilities 4,757,641 (172,907) 4,584,734 Income reserves 3.6.1.1 882,788 (12,892) 869,896 Reserve for investment and expansion 3.6.1.1 447,748 (12,892) 434,856 Other income reserves 435,040 - 435,040 Other comprehensive income (loss) 3.6.1.1 (12,486) (703) (13,189) Other equity items 3,834,312 - 3,834,312 Total equity 4,704,614 (13,595) 4,691,019 Total liabilities and equity 9,462,255 (186,502) 9,275,753

% Impacts – Total assets disclosed -1.97% % Impacts – Total equity disclosed -0.29%

These statements present the balances mentioned in Note 3.6.1.1.

Consolidated 12/31/2019 Note Disclosed Adjustment Restated

Assets Current assets 6,656,209 - 6,656,209 Cash and cash equivalents 3.6.1.2 1,148,053 (167,099) 980,954 Interest-earning bank deposits 3.6.1.2 224,249 167,099 391,348 Other current assets 5,283,907 - 5,283,907 Noncurrent assets 5,135,526 (238,833) 4,896,693 Deferred income and social contribution taxes 3.6.1.1 208,067 6,438 214,505 Rights-of-use 3.6.1.1 1,879,961 (245,271) 1,634,690 Rental subject to purchase option right (*) 26,402 - 26,402 Rentals 3.6.1.1 1,853,559 (245,271) 1,608,288 Other noncurrent assets 3,047,498 - 3,047,498 Total assets 11,791,735 (238,833) 11,552,902 Liabilities and equity Current liabilities 4,768,397 (3,080) 4,765,317 Leases payable 3.6.1.1 450,151 (2,466) 447,685 Rental subject to purchase option right (*) 4,184 - 4,184 Rentals 3.6.1.1 445,967 (2,466) 443,501 Trade accounts payable 3.6.1.1 1,082,399 (614) 1,081,785 Other current liabilities 3,235,847 - 3,235,847 Noncurrent liabilities 2,318,724 (222,158) 2,096,566 Leases payable 3.6.1.1 1,513,284 (221,608) 1,291,676 Rental subject to purchase option right (*) 31,244 - 31,244 Rentals 3.6.1.1 1,482,040 (221,608) 1,260,432 Deferred income and social contribution taxes 3.6.1.1 5,837 (550) 5,287 Other noncurrent liabilities 799,603 - 799,603 Total liabilities 7,087,121 (225,238) 6,861,883 Income reserves 3.6.1.1 882,788 (12,892) 869,896 Reserve for investment and expansion 3.6.1.1 447,748 (12,892) 434,856 Other income reserves 435,040 - 435,040 Other comprehensive income (loss) 3.6.1.1 (12,486) (703) (13,189) Other equity items 3,834,312 - 3,834,312 Total equity 4,704,614 (13,595) 4,691,019 Total liabilities and equity 11,791,735 (238,833) 11,552,902

% Impacts – Total assets disclosed -2.03% % Impacts – Total equity disclosed -0.29%

(*) This corresponds to the administrative main office building, which is subject to an implicit discount rate by contract.

These statements present the balances mentioned in Note 3.6.1.1.

3.6.2.2 Impacts on the income statements

Parent Company Consolidated 2019 2019 Disclosed Adjustment Restated Disclosed Adjustment Restated Gross profit 4,497,921 - 4,497,921 5,857,916 - 5,857,916 Sales (2,149,181) 26,296 (2,122,885) (2,537,083) 31,262 (2,505,821)

Depreciation – Rights-of-use (261,391) 26,296 (235,095) (307,151) 34,542 (272,609) Other selling expenses (1,887,790) - (1,887,790) (2,229,932) (3,280) (2,233,212) General and administrative expenses (787,326) 1,199 (786,127) (880,620) 1,356 (879,264)

Depreciation – Rights-of-use (27,280) 1,199 (26,081) (29,026) 1,356 (27,670) Other general and administrative expenses (760,046) - (760,046) (851,594) - (851,594) Losses on receivables, net (62,306) - (62,306) (381,049) - (381,049) Other operating income (expenses) (231,729) - (231,729) (415,510) 105 (415,405)

Depreciation – Rights-of-use - - - (699) 105 (594) Other expenses (231,729) - (231,729) (414,811) - (414,811) Equity on profit/loss of subsidiaries 215,846 (1,113) 214,733 - - - Net operating expenses (3,014,696) 26,382 (2,988,314) (4,214,262) 32,723 (4,181,539) Operating income before finance income 1,483,225 26,382 1,509,607 1,643,654 32,723 1,676,377 Financial revenues 31,344 - 31,344 74,422 - 74,422 Financial expenses (142,795) (45,342) (188,137) (206,222) (52,595) (258,817) Net finance income (111,451) (45,342) (156,793) (131,800) (52,595) (184,395) Income before income and social contribution taxes 1,371,774 (18,960) 1,352,814 1,511,854 (19,872) 1,491,982 Current (284,753) - (284,753) (472,822) - (472,822) Deferred 12,072 6,068 18,140 60,061 6,980 67,041 Income and social contribution taxes, net (272,681) 6,068 (266,613) (412,761) 6,980 (405,781) Net income for the year 1,099,093 (12,892) 1,086,201 1,099,093 (12,892) 1,086,201

Net earnings per share – basic – R$ 1.4276 (0.0134) 1.4142 1.4276 (0.0134) 1.4142 Net earnings per share diluted R$ 1.4212 (0.0133) 1.4079 1.4212 (0.0133) 1.4079 – –

% impact on net income -1.17% -1.17%

These statements present the balances mentioned in Note 3.6.1.1.

3.6.2.3 Impacts on the statements of comprehensive income

Parent Company and Consolidated 2019 Disclosed Adjustment Restated Net income for the year 1,099,093 (12,892) 1,086,201 Equity valuation adjustments 181 - 181 Accumulated translation adjustments and hyperinflation adjustments (14,815) (703) (15,518) Total comprehensive income for the year 1,084,459 (13,595) 1,070,864

These statements present the balances mentioned in Note 3.6.1.1.

3.6.2.4 Impacts on statements of value added

Parent Company Consolidated 2019 2019 Disclosed Adjustment Restated Disclosed Adjustment Restated ( + ) Revenues 10,337,962 - 10,337,962 11,981,576 - 11,981,576 ( - ) Inputs acquired from third parties (5,120,986) - (5,120,986) (5,773,244) - (5,773,244) ( = ) Gross value added 5,216,976 - 5,216,976 6,208,332 - 6,208,332 ( - ) Retentions (628,047) 30,005 (598,042) (730,091) 35,379 (694,712) Depreciation and amortization (628,047) 30,005 (598,042) (730,091) 35,379 (694,712) ( = ) Net added value produced by Entity 4,588,929 30,005 4,618,934 5,478,241 35,379 5,513,620 ( + ) Added value received in transfer 248,633 (1,113) 247,520 76,054 - 76,054 Equity on profit/loss of subsidiaries 215,846 (1,113) 214,733 - - - Financial revenue, gross of taxes 32,787 - 32,787 76,054 - 76,054 ( = ) Total added value to be distributed 4,837,562 28,892 4,866,454 5,554,295 35,379 5,589,674 ( = ) Value added distributed 4,837,562 28,892 4,866,454 5,554,295 35,379 5,589,674 Personnel 1,075,638 - 1,075,638 1,259,051 - 1,259,051 Taxes, charges and contributions 2,288,662 (6,068) 2,282,594 2,688,970 (6,980) 2,681,990 Remuneration of third party’s capital 374,169 47,852 422,021 507,181 55,251 562,432 Remuneration of own capital 1,099,093 (12,892) 1,086,201 1,099,093 (12,892) 1,086,201

These statements present the balances mentioned in Note 3.6.1.1.

3.6.2.5 Impact on statement of changes in equity – 2019

Capital reserves, shares granted Other and treasury Income comprehensive Retained Capital shares reserves income earnings Total

Restated (*) Restated (*) Restated (*) Balance at January 1, 2019 2,637,473 79,557 1,235,334 2,148 - 3,954,512 Net income for the year - - - - 1,099,093 1,099,093 Change in profit – change in accounting policy - - - - (12,892) (12,892) Capital increase 1,158,161 (72,050) (1,040,000) - - 46,111 Disposal/transfer of shares - 4 - - - 4 Stock option plan - 21,074 - - - 21,074 Restricted share plan - 10,093 - - - 10,093 Equity valuation adjustments - - - 181 - 181 Cumulative translations adjustments - - - (14,815) - (14,815) Impact – change in accounting policy - - - (703) - (703) Deliberation on additional proposed dividends - - (144,639) - - (144,639) Dividends prescribed - - - - 327 327 Profit allocation: - - 819,201 - (1,086,528) (267,327) Legal reserve - - 54,955 - (54,955) - Reserve for investment and expansion - - 397,053 - (397,053) - Change in allocation – change in accounting policy - - (12,892) - 12,892 - Tax incentive reserve - - 97,539 - (97,539) - Dividends (R$ 0.375338 per share) - - 282,546 - (297,916) (15,370) Interest on equity (R$ 0.326461 per share) - - - - (251,957) (251,957) Balance at December 31, 2019 3,795,634 38,678 869,896 (13,189) - 4,691,019

(*) These statements present the balances mentioned in Note 3.6.1.1.

3.6.2.6 Impact on statements of cash flows

Parent Company Consolidated 2019 2019 Disclosed Adjustment Restated Disclosed Adjustment Restated Net cash from operating activities, before interest-earning bank deposits 1,480,442 25,165 1,505,607 1,347,404 26,397 1,373,801 Increase in interest-earning bank deposits - (7,558) (7,558) 215,444 (7,558) 207,886 Net cash from operating activities 1,480,442 17,607 1,498,049 1,562,848 18,839 1,581,687 Net cash used in investing activities (754,030) - (754,030) (750,273) - (750,273) Net cash used in financing activities (590,860) (25,165) (616,026) (621,316) (26,397) (647,713) Effect of exchange differences on cash and cash equivalents - - - 12,123 - 12,123 Decrease in cash and cash equivalents 135,552 (7,558) 127,994 203,382 (7,558) 195,824 Cash and cash equivalents at beginning of year 876,302 (159,541) 716,761 944,671 (159,541) 785,130 Cash and cash equivalents at end of year 1,011,854 (167,099) 844,755 1,148,053 (167,099) 980,954

These statements present the balances mentioned in Note 3.6.1.

3.7 BASIS OF CONSOLIDATION

In the preparation of these statements, financial statements of subsidiaries closed on the same reporting date were used. Investments are recorded under the equity method. The Company’s consolidated financial statements include the companies below, where the direct and indirect interest represents 100.0% on December 31, 2020 and 2019:

3.8 CPC 42/IAS 29 FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES

Pursuant to CPC 42/IAS 29, non-monetary assets and liabilities, equity and income statements of companies operating in highly inflationary economies must be corrected for the changes in purchasing power according to each country’s general price index. The updates made in LRA are based on the Consumer Price Index (CPI), resulting from the combination of CPI published by the National Institute of Statistics and Census (INDEC) and the Internal Wholesale Price Index (IPIM) according to Resolution No. 539/2018 issued by the Argentine Federation of Economic Sciences Professionals Council (FACPCE).

With the start of operations in 2019, the financial statements are restated in accordance with CPC 42/IAS 29.

In 2020 the Company recognized, in equity under other comprehensive income the amounting of R$ 44,813 (R$ 19,412 – gain in 2019) and in financial income of R$ 21,284 (R$ 10,248 – financial expenses in 2019) due to hyperinflation in the LRA.

3.9 IMPACTS OF COVID-19

3.9.1 Context

The novel coronavirus was first identified in December 2019 in Wuhan, China. After the quick spread of the virus, on March 11, the World Health Organization (OMS) declared Covid-19 a pandemic. The Company has monitored the advance of Covid-19 in Asia since the beginning of the year, before its arrival in Brazil, by means of local teams, in Shanghai and Bangladesh offices, and of the trend research teams, which monitor fashion and the facts that influence society.

Therefore, it was possible to plan and adapt the processes and care measures to preserve employees, customers, suppliers and support the society. Below are the pandemic impacts on Company business and the plans to face the global crisis.

IMPACTS ON THE BUSINESS AND FIGHTING INITIATIVES

1 Q 2020

• In the second half of March, with the advance of Covid-19, stricter decisions were required in order to preserve everyone’s health.

• A crisis committee was created, comprised of key executives and 35 technicians involved in the work fronts, relating to the matters affected by the pandemic. Based on these pillars, the Company temporarily close all its physical stores in Brazil, Uruguay and Argentina, between March 18 and 20, contributing to social isolation and pandemic fight. In addition, the home office regime was adopted for the employees working in administrative areas and Service Centrals. These restrictive measures and the lower flow resulted in a sales decrease reflexes in the quarter, which was -1.5% in consolidated net revenue as compared with the same period of the prior year.

• As a strategy to strengthen the Company’s production chain, the orders in progress were not cancelled, supporting the Company’s suppliers in overcoming the pandemic and enabling these suppliers to subsequently support resumption.

• As part of the actions to maintain cash flow, the annual plan was adjusted, reducing expenses, suspending investments that were not essential and directing resources to advancing digital channels and e-commerce solutions. The payment of 50% dividend proposed in 2019 was reviewed and reduced to 25%, as a cash preservation measure.

2 Q 2020

• In the beginning of this quarter, all physical operations were temporarily closed and, on April 24, the Company began to gradually reopen its stores, following strict protocols to ensure a safe environment for employees and customers.

• To make up for the large sales decrease that impacted the quarter, the Company raised borrowings and financing amounting to R$ 1,000,000 – Parent Company and Consolidated, to reinforce working capital and maintain minimum strategic cash levels.

• In the period when the stores were closed, a decrease in rentals was negotiated and all main lines of expenses were reviewed, in order to balance the temporary sales decrease.

• Since April 16, by means of Provisional Executive Order (MP) 936, the Company suspended the work agreement of employees who were inactive in this moment and reduced by 25% the working hours and salaries of all officers, directors and other employees.

• In addition, the Company mobilized its chain for producing masks and other safety and hygiene equipment items, which were donated to vulnerable populations and front-line health institutes fighting the pandemic. Besides supporting the society, this measure ensured the flow of funds into the supplier chain, helping preserve companies and jobs. Some partners also extended the social responsibility virtuous cycle and renounced to their profit in producing such equipment.

• In order to improve the online sales channel, management adopted solutions that facilitate customers’ purchase experience and leverage the Company’s omni-channel strategy. New digital sales channels such as WhatsApp sales were implemented. The delivery methods were also increased, such as drive-thru and mainly ship-from-store, which provided customers with more inventory availability and faster product delivery.

3 Q 2020

• In this period, business resumed, stores were reopened, there was an increased flow of customers and digital business thrived.

• The receipt flow, both in stores and digital channels, began to go back to normal, with a positive effect on the behavior of the portfolios upon the inflow of new sales and an efficient collection action, which allowed the Company to begin to recover from the impacts of the previous quarter.

• As a result of lower revenue generated in the quarter, mainly due to the significant decrease in the portfolio in the period, when the stores were closed and the use of credit cards decreased, a negative result amounting to R$ 51,156 was computed for financial products.

4 Q 2020

• The Company’s culture adapted faster to digital transformation on account of the pandemic and as such, part of our administrative employees remained working from home.

• Revenues from products sold approximated prior year’s amounts, which had a positive impact for the gradual resumption of operations.

• Credit losses improved, net of amounts recovered, mainly due to the portfolio quality and higher levels of recovery of receivables written off due to more collection efficiency.

Impact of COVID-19 on accounting estimates and financial statements

3.9.3.1 Sales revenue

Next is the variation in net consolidated revenue from products and financial services as compared with the prior year (Note 33).

3.9.3.2 Capital management, liquidity risk and covenants

As a result of these initiatives, the Company ended the year with a comfortable position concerning cash and cash equivalents and short-term investments amounting to R$ 2,672,353.

Despite the decrease in EBITDA and increase in debt, the covenant indicators remained below the thresholds established, with a good security margin.

3.9.3.3 Accounts receivable and estimated losses

Trade accounts receivable presented a slight decrease of 0.4% as compared with the prior year, mainly due to the lower sales volume in the period and larger coverage of credit losses.

In 3Q, an increase in credit quality began to be felt, returning to prior-year amounts, in connection with higher recovery levels, the Company’s discount policy and more collection efficiency.

Management remains alert, monitoring the economic scenario and assessing any impacts that may affect the performance of the portfolios, consequently measurement of estimated losses.

3.9.3.4 Inventories and estimated losses

The Management concluded that there are no elements to justify the set-up of additional estimated losses and no necessity to change the estimated losses due to the impacts of Covid-19.

3.9.3.5 Impairment

The conclusion reached was that there are no indications of impairment, since the recoverable amount exceeded book value.

3.9.3.6 Payment of dividends

4 STATEMENT OF VALUE ADDED (SVA)

The purpose of this statement to evidence the wealth created by the Company and its distribution during a certain year and is presented by the Company, as required by Brazilian Corporation Law for Publicly-Held Companies, as part of its individual financial statements and as supplemental information to the consolidated financial statements, because it is not a statement required by IFRS.

The SVA was prepared based on information obtained in the accounting records that serve as basis for the preparation of financial statements and in accordance with the provisions of CPC 09 - Statement of Value Added.

Set out below is the distribution of wealth generated by the Company, in the Consolidated view, in the added value amount of R$ 4,539,776 (R$ 5,589,674 on December 31, 2019):

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

5 STANDARDS AND INTERPRETATIONS IN FORCE AND NOT IN FORCE

5.1 AMENDMENTS TO CPC 38, CPC 40 (R1) AND CPC 48 (CVM RESOLUTION 854/2020)

CVM Resolution 854/2020, which came into effect on January 1, 2020, addresses changes in Accounting Pronouncements CPC 38, CPC 40 (R1) and CPC 48, issued by the CPC, due to the change in the reference interest rate, relating to the planned discontinuity of the use of the London Interbank Offered Rate (Libor) as reference interest rate from 2021 onwards. The Company assessed this matter and concluded that this change had no impacts.

5.2 AMENDMENTS TO CPC 26/IAS 1 AND CPC 23/IAS 8 – DEFINITION OF MATERIALITY

The amendments to CPC 26/IAS 1 and CPC 23/IAS 8 clarify the definition of materiality and align the definition used in the conceptual framework and in other accounting standards. These amendments came into effect on January 1, 2020. The Management understands that these amendments had no significant impacts on Company financial statements, because applies Technical Guidance OCPC 7 and discloses only significant information (Note 3.2).

5.3 AMENDMENT TO IFRS 16 AND CVM RESOLUTION 859/2020

In May 2020, IASB approved an amendment to IFRS 16, which grants lessees benefits in P&L in the period affected by Covid-19 pandemic, not being treated as a change in contract. On July 07, 2020, CVM published Resolution No. 859/2020, which approves the revision of CPC 06 (R2)/IFRS 16 that came into effect on January 1, 2020.

The Company elected the practical expedient and recognized in P&L on December 31, 2020 the amounts of R$ 104,488 – Parent Company and R$ 128,927 – Consolidated (Notes 19.3 and 34.1).

6 RISK MANAGEMENT

A multidisciplinary structure manages the Company’s risks and enables the Executive Board to assess the alignment of business management with the policies and guidelines defined by management. In April 2012, the Board of Directors created the Audit and Risk Management Committee, which identifies and monitors the main risk factors that the Company is exposed in the normal course of operations:

i) Market risk (including foreign exchange risk and interest rate risk); ii) Credit risk (Notes No. 7.4, 8.4 and 24.5); iii) Liquidity risk; and iv) Capital management.

The Company applied CPC 40 (R1) requirements and also considered CVM/SNC/SEP Memorandum Circular No. 01/2021, in compliance with the qualitative and quantitative aspect of risk management.

A description of main involved risks is provided below.

6.1 MARKET RISKS

Currency risk

Risk deriving mostly from import of goods. The policy on currency risk management, defined by Companhy, is to hedge up to 100% of imports by means of hedging transactions – comprised of currency forwards purchase contracts such as Non-Deliverable Forwards (NDF) and Swap operations related to contracted amount of borrowings in foreign currency (Bacen [Central Bank of Brazil] Law 4131).

In addition, net exposure to currency risk is mostly related to the estimate of future cash flows and payments from the goods imported in installments. Subsequently their recording in inventories, the Company adjust the composition of prices in retail to offset the impact of a possible appreciation of the USD and Euro on our costs. To mitigate the net exposure of imported product requests, in compliance with currency risk management policy, monitoring the projections and expected scenarios for the exchange rates of foreign currencies, therefore analyzing the best timing for engaging in hedging transactions.

Below is demonstrated the net exposure and related sensitivity analysis regarding the requests for import of goods, property and equipment and borrowings in foreign currency on December 31, 2020, taking into consideration the US dollar and Euro quotation in each scenario based on B3 S.A. – Brasil, Bolsa, Balcão future market projections for the next date of disclosure.

Consolidated Quotatio n Notional amount - next Probable Currency appreciation (Payable) Receivable quarter scenario Possible +25% Remote +50% Derivatives designated for hedge accounting R$ R$ US$ (145,596) R$ (253,315) R$ (508,955) Requests issued (item) 5.1882 2,321 R$ R$ US$ 134,647 R$ 234,265 R$ 470,681 NDF (instrument) 5.1882 (2,146) R$ Net exposure US$ (10,949) R$ (19.050) R$ (38.274) 175

Property and equipment purchase contract R$ € (39,134) R$ 349 R$ (34,049) R$ (68,446) (item) 6.3895 R$ R$ € 19,500 R$ 16,966 R$ 34,106 NDF (instrument) 6.3895 (174) R$ R$ R$ Net exposure € (19,634) 175 (17,083) (34,340)

Not designated for hedge accounting R$ R$ US$ (58,284) R$ (75,621) R$ (151,142) Borrowing 4,131 (item) 5.1882 (100) R$ R$ Swap - (Instrument) US$ 58,284 R$ 75,621 R$ 151,142 5.1882 100 Net exposure US$ - R$ - R$ - R$ -

R$ R$ (36,133) R$ (72,614) Total net exposure/effect 350

Total exposure, net of income tax/social R$ R$ (23,848) R$ (47,925) contribution of 34.00% 231

Interest rate risk

This arises from transactions of cash equivalents, interest-earning bank deposits, financing of financial services operations, debentures, borrowings and Swap. The Company’s policy is to keep 100% of its borrowings in the fixed rate market, with funding repaying fixed rates as well as adjusted for Interbank Deposit Certificates (CDI), Central Bank Benchmark Rate (Selic) and Libor. Keeping financial assets indexed to the CDI and short-term receivables adjusted to fixed interest rates, the level of risk associated with fluctuation in interest rates is relatively low.

The management continuously analyze interest risk exposure, by comparing the rates contracted to market rates, simulating refinancing, position renewal and natural hedge scenarios, defining a reasonable change in the interest rate and calculating the impact on P&L.

On December 31, 2020, the Company conducted sensitivity tests for adverse scenarios of interest, which are presented below, considering the expected scenario for the next CDI and Selic interest rate disclosure of 1.96% p.a., based on B3 futures market projections. Income from cash equivalents and interest- earning bank deposits are net of Contribution Taxes on Gross Revenue for Social Integration Program (PIS) and for Social Security Financing (COFINS).

6.2 LIQUIDITY RISK OBJECTIVES OF CASH EQUIVAMENT MANAGEMENT The Company generate our cash and cash equivalents by Guarantee Prevent moments of establishing a minimum strategic cash amount, based on the cash performance of Guarantee the uncertainty in the investment and maintenance of economy cycle of retail operations and the minimum capital required to ex pansion strategy the dividend guarantee the credit operations, ensuring sufficient cash to meet pay ment policy Company requirements and business plans, which aim at: Guarantee the maintenance/ex pansio Guarantee amortization n of financial product and debt services operations in credit restriction times

Financial

InstrumentIssue1st Indicator 2nd Indicator

9th issue of debentures MAR 18 2019

11th issue of debentures MAY 08 2020

CCB Borrowing MAY 14 2020 ≥ 2,0 CCB Borrowing SEP 09 2020 ≤ 3,0

Borrowing 4.131 JAN 09 2019

Borrowing 4.131 JAN 27 2020

Non-Financial

Rating agency Standard & Poors rated the Company credit as brAAA- in the national scale category (Brazil).

Contractual cash flow includes principal plus estimated future interest. The contractual cash flows of financial liabilities in the Consolidated financial statements are as follows:

More Book Contractual Within 3 7-12 3-5 than 5 balance cash flow months 4-6 months months 1-2 years years years Borrowings, financing and 2,623,014 2,767,421 556,850 545,206 36,463 1,214,029 414,873 - debentures Financing - financial service 761,965 797,115 103,950 168,240 73,120 451,805 - - operations Leases payable 1,862,387 2,912,858 132,244 124,036 245,873 462,571 1,011,584 936,550 Suppliers 1,500,355 1,509,498 1,329,530 82,316 2,149 26,999 68,504 - Obligations with credit card 1,193,168 1,193,168 871,760 218,051 103,357 - - - administrators Derivative financial instruments 31,428 31,608 20,871 10,737 - - - - Balance at December 31, 2020 7,972,317 9,211,668 3,015,205 1,148,586 460,962 2,155,404 1,494,961 936,550

Book Contractual Within 3 4-6 7-12 More than balance cash flow months months months 1-2 years 3-5 years 5 years Borrowings, financing and debentures 1,153,663 1,219,144 465,204 12,240 291,882 23,012 426,806 - Financing - financial service operations 491,366 545,170 37,740 - 152,855 - 354,575 - Leases payable (*) 1,739,361 2,434,655 115,160 106,431 205,734 388,194 840,842 778,294 Suppliers (*) 1,081,785 1,086,997 1,053,462 33,282 253 - - - Obligations with credit card administrators 985,298 985,298 772,122 151,619 61,557 - - - Derivative financial instruments 7,764 7,764 5,228 2,489 47 - - - Total at December 31, 2019 5,459,237 6,279,028 2,448,916 306,061 712,328 411,206 1,622,223 778,294

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

6.3 CAPITAL MANAGEMENT

In addition to equity, the Company uses third parties capital to fund its activities, thereby optimizing its capital structure. Net indebtedness levels reflect total exposure of the obligations payable to the financial system and capital market, therefore not including liabilities relating to leases payable.

Indebtedness levels are monitored in relation to the Company’s cash generation capacity and capital structure.

Consolidated 12/31/2020 12/31/2019 Borrowings and financing (2,623,014) (1,153,663) Current (1,077,081) (709,022) Noncurrent (1,545,933) (444,641) Operating financing (761,965) (491,366) Current (341,390) (184,996) Noncurrent (420,575) (306,370) Gross indebtedness (3,384,979) (1,645,029) Cash and cash equivalents, and interest- earning bank deposits 2,672,353 1,372,302 Net indebtedness (712,626) (272,727)

Equity (*) 5,501,316 4,691,019 Financial leverage ratio 12.95% 5.81%

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

7 CASH AND CASH EQUIVALENTS, AND INTEREST- EARNING BANK DEPOSITS

7.1 ACCOUNTING POLICY

Cash equivalents are measured at fair value through profit or loss, it includes cash balance, demand deposits, short-term and highly liquid short-term interest earning bank deposits, recorded at amounts similar to market values.

Interest-earning bank deposits not classified as cash equivalents are investments that do not have repurchase guarantees by the issuer in the primary market, with guarantee only in the secondary market, and measured at fair value through profit or loss.

100

7.2 BREAKDOWN OF CASH AND CASH EQUIVALENTS

Weighted Parent Company Consolidated Index average rate p.a. 12/31/2020 12/31/2019 12/31/2020 12/31/2019

Restated (*) Restated (*) Cash and banks In domestic currency 82,419 121,471 95,958 136,658 In foreign currency - - 44,345 45,028 Cash equivalents CDB CDI 103.0% to 104.5% 1,666,691 632,733 1,830,736 676,527 Investment funds CDI 17.6% - 68,729 77,927 100,919 Repo operations in debentures CDI 86.5% - 23 5,486 23 Automatic Investment CDI 10.0% 12,301 21,758 12,301 21,758 Fund - BACEN Jud CDI 61.3% 28 41 28 41 Total 1,761,439 844,755 2,066,781 980,954

(*) Restatement of comparative balances due to the change in the accounting policy for classification of exclusive investment funds, as described in Note 3.6.1.2.

7.3 BREAKDOWN OF INTEREST-EARNING BANK DEPOSITS

Weighted Parent Company Consolidated average Index rate p.a. 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Restated (*) Restated (*) Financial National Treasury Bills SELIC 100.0% - - 466,360 224,249 Exclusive investment funds (i) Financial bills CDI 104.8% 115,468 149,978 115,468 149,978 Financial National Treasury Bills SELIC 100.0% 23,744 17,121 23,744 17,121 Total 139,212 167,099 605,572 391,348

(i) The exclusive investment fund Brasil Plural Retail FI is a fixed-income private credit fund managed and administered by BNY Mellon Serviços Financeiros DTVM S.A., organized for the sole purpose of holding interests of the parent company. Thus, the fund’s financial investment was fully included in these financial statements, pursuant to CVM Ruling 408/04. Other obligations relating to this fund substantially refer to administrative fees for portfolio maintenance. Earnings recognized reflect the daily marking in the fund’s position and its assets have liquidity by means of a secondary market.

(*) Restatement of comparative balances due to the change in the accounting policy for classification of exclusive investment funds, as described in Note 3.6.1.2.

7.4 CREDIT RISK

According to the Company’s financial policy, cash equivalents and interest-earning bank deposits are invested in financial institutions with long-term rating in national scale classified as low credit risk and that are renowned in the market for their soundness.

The ratings of cash equivalents and the interest-earning bank deposits are according to the main risk rating agencies.

Next is the credit quality of cash equivalents and interest-earning bank deposits of the Company.

(*) Not applicable, because there is no classification of risk in the main risk rating agencies for Funds – Brasil Plural Crédito Privado Retail FIRF, Western Assets and National Treasury Bills in national scale. However, these assets are rated AAA in at least one risk rating agency.

101

8 TRADE ACCOUNTS RECEIVABLE

8.1 ACCOUNTING POLICY

Trade accounts receivable correspond to amounts receivable for the sale of goods, use of the Co-branded card (“Meu Cartão”) at the network of affiliated stores by the Visa and Mastercard system, and quick withdrawals granted to its customers by indirect subsidiary Realize CFI and financial institutions in the agreement.

Fixed credit sales were brought to present value on transaction dates, based on the average rate informed by the Central Bank of Brazil for advanced of receivables which was of 0.63% p.m. (0.99% p.m. on December 31, 2019, when weighted average cost of capital was used). The present value adjustment is matched against trade accounts receivable and its accomplishment is recorded as sales revenue over the fruition term.

8.2 BREAKDOWN

Parent Company Consolidated 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Renner credit card (Private Label) 810,639 973,555 1,179,920 1,394,809 Branded card (Meu Cartão) 359,772 334,785 2,355,916 2,078,378 Third-party cards 658,789 644,540 846,490 816,479 Exports - Related parties 38,484 29,173 - - Other receivables 994 1,995 9,218 5,817 (-) Estimated credit losses - (25,965) (548,109) (420,705) (-) Adjustment to present value (29,455) (45,309) (31,767) (48,817) Total 1,839,223 1,912,774 3,811,668 3,825,961

8.3 ESTIMATED CREDIT LOSSES

PROBABILITY OF DEFAULT EXPOSURE TO DEFAULT LOSS GIVEN DEFAULT EXPECTED CREDIT LOSS

Provision for estimated credit losses is the total considered sufficient by management to cover any losses on realization of receivables based on customer portfolio analysis.

Changes in estimated credit losses

Estimated Estimated (losses) Balances at (losses), Write- Balances at reversals, Write- Balances at 01/01/2019 net offs 12/31/2019 net offs 12/31/2020 Renner credit card (Private Label) (65,406) (159,539) 198,980 (25,965) 1,397 24,568 - Total - Parent Company (65,406) (159,539) 198,980 (25,965) 1,397 24,568 - Branded card (232,007) (280,563) 224,678 (287,892) (372,060) 318,567 (341,385) Renner credit card (Private Label) (8,353) (107,245) 8,750 (106,848) (216,793) 116,917 (206,724) Total - Consolidated (305,766) (547,347) 432,408 (420,705) (587,456) 460,052 (548,109)

102

Changes in adjustment to present value

Balances at Write- Balances at Write- Balances at 01/01/2019 Additions offs 12/31/2019 Additions offs 12/31/2020 Total - Parent Company (40,455) (163,681) 158,827 (45,309) (92,532) 108,386 (29,455) Total - Consolidated (43,208) (178,014) 172,405 (48,817) (102,474) 119,524 (31,767)

Portfolio per credit product and delay range

Consolidated 12/31/2020 12/31/2019 Renner credit card (Private Label) Not yet due Overdue Balance Not yet due Overdue Balance A - from 0 to 14 days 866,763 16,380 883,143 1,097,346 22,011 1,119,357 B - from 15 to 30 days 29,085 9,253 38,338 45,358 15,109 60,467 C - from 31 to 60 days 17,408 13,181 30,589 22,493 20,026 42,519 D - from 61 to 90 days 8,962 10,511 19,473 10,149 20,012 30,161 E - from 91 to 120 days 5,861 10,454 16,315 6,970 26,523 33,493 F - from 121 to 150 days 3,997 8,251 12,248 4,105 30,020 34,125 G - from 151 to 180 days 3,152 7,349 10,501 2,304 31,836 34,140 H – more than 180 days 12,273 157,040 169,313 2,592 37,955 40,547 Total 947,501 232,419 1,179,920 1,191,317 203,492 1,394,809 Estimated credit losses (206,724) (132,813) Total coverage ratio 17.5% 9.5%

Consolidated 12/31/2020 12/31/2019 Branded card (Meu Cartão) Not yet due Overdue Balance Not yet due Overdue Balance A - from 0 to 14 days 1,800,723 27,865 1,828,588 1,532,782 33,553 1,566,335 B - from 15 to 30 days 30,276 17,414 47,690 37,041 25,445 62,486 C - from 31 to 60 days 22,157 18,856 41,013 28,494 35,624 64,118 D - from 61 to 90 days 40,816 20,553 61,369 37,186 38,532 75,718 E - from 91 to 120 days 21,640 17,536 39,176 16,886 33,014 49,900 F - from 121 to 150 days 16,371 15,288 31,659 11,365 31,333 42,698 G - from 151 to 180 days 13,835 14,809 28,644 7,829 25,568 33,397 H – more than 180 days 84,681 193,096 277,777 41,613 142,113 183,726 Total 2,030,499 325,417 2,355,916 1,713,196 365,182 2,078,378 Estimated credit losses (341,385) (287,892) Total coverage ratio 14.5% 13.9%

8.4 CREDIT RISK

The sales and credit grant policies of the Company aim at minimizing possible problems arising from the default of its customers through a judicious selection of the client balance, which takes into consideration their capacity to pay (creditworthiness) and diversification of its operations (risk spread). These policies are subordinated to the credit policies set out by management, supported by advanced technology systems and processes, related to the risk and fraud area.

103

The internal risk rating of the credit quality of the accounts receivable balance is as follows:

i) Low Risk: likelihood lower than or equal to 9.3% of being over 60 days past due. ii) Medium low risk: likelihood higher than 9.3% and lower than or equal to 16.8% of being over 60 pasts due. iii) Medium Risk: customers with up to four months of Renner Credit Card or Meu Cartão with little history of movement for purposes of measuring the likelihood of default. iv) Medium high risk: likelihood higher than 16.8% and lower than or equal to 31.3% of being over 60 past due. v) High risk: likelihood higher than 31.3% of being over 60 days past due.

Receivables from sales using third-party credit cards are not included in this analysis since these amounts are subject to a low risk of default by the card issuer, with no historical losses and expectation of future losses.

The receivables from sales with third-party credit cards are not included in this analysis as they are receivables with risk of default by the card issuer, with no history of loss and no expectation of future losses.

9 INVENTORIES

9.1 ACCOUNTING POLICY

Inventories are measured at acquisition cost, including non-recoverable taxes, transportation costs, and other costs necessary to take inventories to current conditions. Costs of imported goods’ inventories also consider any gains or losses on settled cash flow hedges that are transferred from equity.

Inventories are valued at weighted average cost and deducted from estimated losses and adjustment to present value on transaction date, when applicable. The present value adjustment is matched against inventories and its realization is recorded as selling expenses upon realization. The discount rate used for adjusting inventory balances to present value is the average discount rate observable in the market informed by the Central Bank of Brazil. The rate used was of 1.14% p.m. (0.99% p.m. on December 31, 2019, while the weighted average cost of capital was used).

9.2 BREAKDOWN

Parent Company Consolidated

12/31/2020 12/31/2019 12/31/2020 12/31/2019 Goods for resale 984,942 779,948 1,169,601 956,330 Imports in transit 193,170 165,611 238,994 199,083 Advances to suppliers 18,464 3,777 18,464 3,947 Auxiliary materials and warehouse 5,534 5,226 8,078 10,742 Adjustment to present value (23,256) (17,582) (25,999) (19,285) Estimated losses (26,615) (21,132) (27,476) (26,311) Total 1,152,239 915,848 1,381,662 1,124,506

The Company has a balance of advances related to confirming agreement with a balance of R$ 18,464 on December 31, 2020 in the Parent Company and Consolidated (R$ 3,777 on December 31, 2019), fully reversing into inventory goods.

104

Changes in adjustment to present value

Parent Company Consolidated Balance at January 1, 2019 (18,822) (19,698) Additions (67,471) (72,105) Write-offs 68,711 72,518 Balance at December 31, 2019 (17,582) (19,285) Additions (63,520) (68,154) Write-offs 57,846 61,440 Balance at December 31, 2020 (23,256) (25,999)

9.3 ESTIMATED INVENTORY LOSSES

Parent Company Consolidated Since the implementation of the Balance at January 1, 2019 (61,805) (69,092) RFID (Product Identification by (-) Estimated losses, net (57,356) (62,240) Radio Frequency) system at the (+) Actual loss 98,029 104,625 Parent Company, it was possible (+/-) Translation adjustment - 396 to increase the frequency of Balance at December 31, 2019 (21,132) (26,311) carrying out inventories and,

(-) Estimated losses, net (54,279) (58,734) then, the effects of inventories

(+) Actual loss 48,796 53,687 carried out throughout the year

(+/-) Translation adjustment - 3,882 began to be recognized directly

Balance at December 31, 2020 (26,615) (27,476) in the result, without being recorded in estimated losses.

10 TAXES RECOVERABLE

Parent Company Consolidated 12/31/2020 12/31/2019 12/31/2020 12/31/2019 State VAT (ICMS) 152,239 146,604 199,125 185,636 ICMS – Fixed assets 41,297 53,736 46,400 60,771 Income and social contribution taxes 43,373 11,778 73,146 17,187 PIS and COFINS (i) 1,252,670 8,821 1,254,412 9,324 Tax credits from foreign subsidiaries - - 39,130 27,673 Other recoverable taxes 10,465 29,503 10,895 31,150 Total 1,500,044 250,442 1,623,108 331,741

Current assets 863,933 199,116 961,997 258,396 Noncurrent assets 636,111 51,326 661,111 73,345 Total 1,500,044 250,442 1,623,108 331,741

(i) ICMS in PIS/COFINS base The lawsuits filed by the parent company claiming recognition of the right to exclude ICMS from the PIS and COFINS base and to offset the unduly-paid amounts was awarded a final unappealable decision in May 2020 in favor of the parent company. The decision issued by the Federal Regional Court – 4th Chapter expressly defines that “for proceedings judged after Supplementary Law 118/2005 (June 9, 2005) came into effect, the period of limitations is of 5 years as from the intended payment refund. This action was filed on 10/10/2006, reason why the amounts recoverable retroact to 11/2001.

105

The Management expects that the tax credits, whose restated balance on December 31, 2020 net of amounts already offset totals R$ 1,241,314, will be offset until the first quarter of 2022.

The Company analyzed the realization of taxes recoverable by function of Covid-19 and believes that these are short-term impacts that do not compromise their recovery.

11 OTHER ASSETS

Parent Company Consolidated 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Prepaid expenses 6,307 8,241 9,858 9,414 Judicial deposits 4,701 9,496 4,856 9,610 Advances to third parties 18,257 18,420 28,096 29,289 Advance to employees 7,838 4,395 8,709 5,036 Credits from agreement with suppliers 4,780 8,176 4,780 8,176 Insurance indemnities in progress 164 1,162 315 1,402 Insurance commissions receivable - 197 3,740 5,479 Amounts receivable – Operating financial services Agreement - 7,567 - 7,567 Other accounts receivable 14,093 8,759 16,144 10,897 Total 56,140 66,413 76,498 86,870

Current assets 46,093 53,195 63,651 70,662 Noncurrent assets 10,047 13,218 12,847 16,208 Total 56,140 66,413 76,498 86,870

12 INCOME TAX AND SOCIAL CONTRIBUTION

12.1 ACCOUNTING POLICY

Provision for income tax and social contribution is based on taxable profit for the year. Deferred income tax and social contribution taxes are recognized on temporary differences at the end of each year between the balances of assets and liabilities recognized in the financial statements and the respective tax bases employed to arrive at taxable profit, including the balance of tax losses, when applicable. Current and deferred taxes are recognized in profit or loss, except when they correspond to items recorded in “other comprehensive income” in equity.

In calculating current and deferred income tax and social contribution taxes, the Company takes into consideration the impact of uncertainties relating to the tax positions assumed. The Company believes that provision for income tax in liabilities is appropriate based on analysis of various factors including interpretation of the tax laws and opinion of Company legal advisors.

106

12.2 BREAKDOWN

Parent Company 12/31/2020 12/31/2019 Social Social Income contribution Income contribution Taxable event tax base base IRPJ/CSLL tax base base IRPJ/CSLL Estimated losses in assets 26,615 26,615 9,049 63,941 63,941 21,740 Provisions for tax, civil and labor risks 108,545 108,545 36,905 84,957 84,957 28,885 Adjustment to present value 45,023 45,023 15,308 58,086 58,086 19,749 Provision for employee profit sharing 23,175 23,175 7,880 68,227 68,227 23,197 Restricted share plan 26,850 26,850 9,129 39,664 39,664 13,486 Income tax and social contribution losses 164,190 159,388 55,392 - - - Equity valuation adjustments - hedge 25,431 25,431 8,647 2,436 2,436 828 Swap from borrowings - - - 2,115 2,115 719 Leases payable (*) 121,251 121,251 41,225 81,543 81,543 27,725 Other provisions 700 - 175 702 11 177 Deferred tax assets 541,780 536,278 183,710 401,671 400,980 136,506 Difference between useful life and tax (186,185) (186,185) (63,303) (124,167) (124,167) (42,217) Swap from borrowings (47,662) (47,662) (16,205) - - - Other provisions (1,213) (1,213) (412) (14,176) (14,176) (4,820) Deferred tax liabilities (235,060) (235,060) (79,920) (138,343) (138,343) (47,037)

Total 306,720 301,218 103,790 263,328 262,637 89,469 Rates of 25% IRPJ and 9% CSLL..

Consolidated 12/31/2020 12/31/2019 Social Social Income tax contributio Income tax contribution Taxable event base n base IRPJ/CSLL base base IRPJ/CSLL

Estimated losses in assets 288,436 286,977 104,537 283,738 282,316 103,034

Provisions for tax, civil and labor risks 130,223 130,223 47,271 100,754 100,754 36,644

Adjustment to present value 50,250 50,250 18,241 62,890 62,890 22,873

Provision for employee profit sharing 24,002 24,002 8,713 69,864 69,864 25,410

Restricted share plan 26,850 26,850 9,747 39,664 39,664 14,426 Income tax and social contribution losses (i) 478,686 422,275 167,389 178,105 (*) 168,610 63,697

Equity valuation adjustments - hedge 25,993 25,993 9,435 3,382 3,382 1,230

Leases payable (*) 141,073 136,463 50,689 91,392 89,041 32,972

Other provisions 22,887 - 5,721 20,707 2,126 5,418

Deferred tax assets base 1,188,400 1,103,033 421,743 850,496 818,647 305,704

Goodwill on acquisition of equity interest (96,693) (96,693) (35,100) (76,707) (76,707) (27,898)

Appreciation of assets (28,543) (28,543) (10,361) (28,888) (28,888) (10,507)

Difference between useful life and tax (202,375) (202,375) (73,462) (138,639) (138,639) (50,423)

Swap from borrowings (63,328) (63,328) (22,988) (1,471) (1,471) (535)

Other provisions (10,625) (2,222) (2,907) (21,647) (15,050) (7,123)

Deferred tax liabilities base (401,564) (393,161) (144,818) (267,352) (260,755) (96,486)

107

Total (ii) 786,836 709,872 276,925 583,144 557,892 209,218 Rate of 25% IRPJ and 11.30% CSLL weighted nominal rate on December 31, 2020 (11.37% at December 31, 2019) differs from the general rate of 9% due to consolidation of balances of indirect subsidiary Realize CFI.

(i) Recognized credits on tax losses and negative basis of social contribution of the Parent Company and the subsidiaries Camicado, Youcom, LRS, LRU and LRA. (ii) The Management offsets deferred assets against deferred liabilities of the Parent Company and subsidiaries individually.

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

12.3 CHANGES IN DEFERRED TAXES, NET

Below are the changes in deferred taxes, recognized at weighted nominal rates:

Parent Company Consolidated Balance at January 1, 2019 71,451 142,244 Recognized in profit or loss 18,140 67,041 Recognized in other comprehensive income (122) (93) Translation adjustments - 26 Balance at December 31, 2019 (*) – Restated (*) 89,469 209,218 Recognized in profit or loss 6,503 58,321 Recognized in other comprehensive income 7,818 7,688 Translation adjustments - 1,698 Balance at December 31, 2020 103,790 276,925

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

12.4 REALIZATION OF DEFERRED TAX ASSETS

The recoverability of deferred tax asset balances is reviewed at the end of each year or, when it is no longer probable that future taxable profits will be available to recover the asset, in whole or in part. The evaluation of the Management, the current scenario affected by Covid-19 had no impact on projected future taxable profits, which are based on technical feasibility studies, allowing for recovery of credits within a period of no more than 10 years. Also, estimated deferred tax realization involves uncertainties of other estimates.

108

12.5 ANALYSIS OF EFFECTIVE RATE FOR INCOME TAX AND SOCIAL CONTRIBUTION

Reconciliation between the tax expense as calculated by the combined statutory rates and income and social contribution tax expenses charged to profit or loss is as follows:

Parent Company Consolidated 2020 2019 2020 2019 Restated (*) Restated (*) Profit or loss before income tax and social contribution 1,230,394 1,352,814 1,200,761 1,491,982 Combined tax rate 34% 34% 34% 34% Tax expense at nominal rate (418,334) (459,957) (408,259) (507,274) Permanent (additions) exclusions: Stock option plan expense (7,763) (7,166) (7,763) (7,166) Profit or loss from ownership interest (21,645) 73,010 - - Interest on equity 81,878 85,665 81,878 85,665 Management fees (341) (1,464) (341) (1,464) Tax benefits (PAT) 4,341 8,427 4,468 8,584 Investment grant (i) 22,193 33,163 22,977 34,504 Incentive for technological innovation (Law 11196/2005) 5,129 4,319 7,623 4,380 Income tax and social contribution differences of subsidiaries - - (3,769) (19,187) Recovery – loan transactions - - 12,051 - Monetary adjustments - - (11,691) Other exclusions (additions) (ii) 200,405 (2,634) 198,280 (3,919) Portion exempt from 10% surtax 12 24 54 96 Income tax and social contribution in P&L (134,125) (266,613) (104,492) (405,781)

Current (140,628) (284,753) (162,813) (472,822) Deferred 6,503 18,140 58,321 67,041

Effective tax rate 10.90% 19.71% 8.70% 27.20%

(i) ICMS tax incentives and benefits, considered investment subsidies, under the terms of Supplementary Law 160/2017.

(ii) This refers mostly to exclusion by force of a legal decision that recognizes non-levy of income tax and social contribution on Selic-based interest received as a refund for unduly paid tax amounts.

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

13 INVESTMENTS

13.1 BREAKDOWN OF INVESTMENTS

In the Parent Company financial statements, Company investments are recorded under the equity method.

Parent Company 12/31/2020 12/31/2019 Restated (*) Investments in subsidiaries 1,593,965 1,381,986 Goodwill on asset 1,290 1,290 appreciation Total 1,595,255 1,383,276

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

109

13.2 CHANGES IN INVESTMENTS IN SUBSIDIARIES

Balance at Equity on Other 12/31/2019 Capital profit/loss of comprehensive Balance at Subsidiaries (*) contribution subsidiaries income (loss) Dividends 12/31/2020 RACC 1,647 - 3,423 - (3,085) 1,985 Dromegon 11,443 - 3,729 - (3,841) 11,331 Camicado 406,766 128,778 (21,149) 327 - 514,722 Youcom 142,244 44,211 (15,854) (74) - 170,527 LRS 9,750 313 (2,589) 1,813 - 9,287 Realize Participações S.A. 550,744 - 30,064 - - 580,808 LRU 142,631 16,900 (15,083) 20,803 - 165,251 LRA 114,820 37,095 (45,040) 31,883 - 138,758 Realize CFI 3 - - - - 3 Lojas Renner Trading Uruguay 1,938 - (1,164) 519 - 1,293 Total 1,381,986 227,297 (63,663) 55,271 (6,926) 1,593,965

Equity on Other profit/loss of comprehensive Balance at Balance at Capital subsidiaries income (loss) 12/31/2019 Subsidiaries 12/31/2019 contribution (*) (*) Dividends (*) RACC 2,167 - 7,597 - (8,117) 1,647 Dromegon 11,573 - 6,101 - (6,231) 11,443 Camicado 413,838 - (7,051) (21) - 406,766 Youcom 122,949 20,000 (669) (36) - 142,244 LRS 7 6,776 2,562 405 - 9,750 Realize Participações S.A. 283,938 50,000 216,806 - - 550,744 LRU 120,967 37,141 (3,189) (12,288) - 142,631 LRA 11 125,806 (7,340) (3,657) - 114,820 Realize CFI 2 - 1 - - 3 Lojas Renner Trading Uruguay - 2,001 (85) 22 - 1,938 Total 955,452 241,724 214,733 (15,575) (14,348) 1,381,986

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

14 FIXED ASSETS AND INTANGIBLE ASSETS

14.1 ACCOUNTING POLICY

Fixed assets and intangible assets are recorded at the cost of acquisition, formation or installation of stores, deducted from accumulated depreciation or amortization, calculated under the straight-line method at rates that consider estimated useful lives of assets, as follows:

As a procedure, the Company annually reviews the fixed and intangible assets technical assessments from specialized employees and aiming at:

Fixed Assets, Annual Rate | Useful life

FIXED ASSETS INTANGIBLE ASSETS

Buildings Facilities Machinery and equipment IT systems 1.66% | 60 years 5 - 10% | 10 a 20 years 5 - 10% | 10 - 20 years 12.5 to 20% | 5 - 8 years

i) Identifying evidence that its assets may be impaired; and ii) Identifying changes in the form of use and maintenance that may affect the useful life of its fixed and intangible assets.

110

On December 31, 2020, due to the Covid-19 impacts, the Management reviewed the future projections of its cash-generating units (UGC), using WACC as discount rate for a period of 10 years, and identified no factors that indicated significant losses relating to recording of impairment and did not reassess or identify idleness property and equipment items.

14.2 BREAKDOWN OF FIXED ASSETS

Parent Company 12/31/2020 12/31/2019 Accumulated Net book Accumulated Net book Cost depreciation value Cost depreciation value Land 288 - 288 288 - 288 Properties 61,898 (3,439) 58,459 61,898 (2,613) 59,285 Furniture and fixtures 422,727 (222,699) 200,028 469,412 (237,546) 231,866 Facilities 524,433 (266,896) 257,537 514,051 (247,698) 266,353 Machinery and equipment 269,507 (143,610) 125,897 274,080 (146,160) 127,920 Leasehold improvements 1,760,527 (1,021,820) 738,707 1,710,288 (883,821) 826,467 Vehicles 1,424 (562) 862 1,589 (425) 1,164 Computers and peripherals 259,715 (148,114) 111,601 271,695 (159,500) 112,195 Fixed assets in progress 293,017 - 293,017 188,715 - 188,715 Total 3,593,536 (1,807,140) 1,786,396 3,492,016 (1,677,763) 1,814,253

Consolidated 12/31/2020 12/31/2019 Accumulated Net book Accumulated Net book Cost depreciation value Cost depreciation value Land 288 - 288 288 - 288 Properties 76,965 (9,319) 67,646 76,965 (8,493) 68,472 Furniture and fixtures 505,892 (255,515) 250,377 540,693 (262,862) 277,831 Facilities 583,571 (292,648) 290,923 570,394 (269,276) 301,118 Machinery and equipment 291,093 (147,367) 143,726 291,320 (148,498) 142,822 Leasehold improvements 2,089,477 (1,113,903) 975,574 2,003,402 (945,061) 1,058,341 Vehicles 1,424 (562) 862 1,589 (424) 1,165 Computers and peripherals 287,350 (160,366) 126,984 291,164 (166,821) 124,343 Fixed assets in progress 297,880 - 297,880 199,330 - 199,330 Total 4,133,940 (1,979,680) 2,154,260 3,975,145 (1,801,435) 2,173,710

111

14.3 RECONCILIATION OF NET BOOK VALUE OF FIXED ASSETS

Parent Company

Balance at Estimated Transfers - CPC Balance at Estimated Balance at Book value 01/01/2019 Additions Transfers Write-offs losses 06 (R2)/IFRS 16 Depreciation 12/31/2019 Additions Transfers Write-offs losses (*) Depreciation 12/31/2020 Land 288 ------288 - - - - - 288 Properties 87,131 - - - - (27,021) (825) 59,285 - - - - (826) 58,459 Furniture and fixtures 230,385 2,103 49,958 (1,307) (8,204) - (41,069) 231,866 6,378 17,393 (11,174) 8,204 (52,639) 200,028 Facilities 264,322 1,365 25,868 (101) (256) - (24,845) 266,353 6,347 9,570 (1,566) 256 (23,423) 257,537 Machinery and equipment 123,437 958 17,271 (43) (206) - (13,497) 127,920 5,919 3,279 (1,607) 206 (9,820) 125,897 Leasehold improvements 825,918 7,939 132,421 (621) (1,795) - (137,395) 826,467 25,861 37,756 (2,936) 1,795 (150,236) 738,707 Vehicles 1,718 311 - (628) - - (237) 1,164 - - (101) - (201) 862 Computers 95,011 512 53,773 (2,242) (5,499) - (29,360) 112,195 3,913 20,810 (7,281) 5,502 (23,538) 111,601 Fixed assets in progress 89,662 378,927 (279,291) (581) (2) - - 188,715 193,146 (88,808) (36) - - 293,017 Total 1,717,872 392,115 - (5,523) (15,962) (27,021) (247,228) 1,814,253 241,564 - (24,701) 15,963 (260,683) 1,786,396

Consolidated

Transfers - CPC 06 Balance at Write- Estimated (R2)/IFRS Translation Balance at Write- Estimated Translation Balance at Book value 01/01/2019 Additions Transfers offs losses 16 Deprec. adjustments 12/31/2019 Additions Transfers offs losses (*) Deprec. adjustments 12/31/2020 Land 288 ------288 ------288 Properties 96,188 131 - - - (27,021) (826) - 68,472 - - - - (826) - 67,646 Furniture and fixtures 272,596 2,577 60,643 (1,128) (8,654) - (47,844) (359) 277,831 10,076 25,416 (13,945) 8,608 (60,242) 2,633 250,377 Facilities 295,597 4,232 31,360 (81) (896) - (28,730) (364) 301,118 8,802 11,283 (3,169) 480 (28,386) 795 290,923 Machinery and equipment 130,222 952 26,222 (63) (267) - (14,107) (137) 142,822 5,821 4,627 (1,810) 264 (11,118) 3,120 143,726 Leasehold improvements 993,626 8,797 226,442 (4,625) (4,207) - (159,162) (2,530) 1,058,341 35,892 54,382 (8,322) 3.708 (182,430) 14,003 975,574 Vehicles 1,718 311 - (626) - - (238) - 1,165 - - (102) - (201) - 862 Computers 103,851 1,283 57,558 (671) (5,574) - (31,857) (247) 124,343 6,673 27,218 (8,689) 5,566 (29,086) 959 126,984 Fixed assets in progress 100,363 501,678 (402,225) - (2) - - (484) 199,330 216,535 (122,926) (786) - - 5,727 297,880 Total 1,994,449 519,961 - (7,194) (19,600) (27,021) (282,764) (4,121) 2,173,710 283,799 - (36,823) 18,626 (312,289) 27,237 2,154,260

(*) Related to the reversal of estimated losses and the recognition of write-offs due to the completion of the inventory during fiscal year 2020. The main natures that breakdown the group of fixed assets in progress refer to the opening of the Company’s stores and distribution centers.

112

14.4 BREAKDOWN OF INTANGIBLE ASSETS

Parent Company 12/31/2020 12/31/2019 Accumulated Net book Accumulated Net book Cost amortization value Cost amortization value IT systems 1,004,211 (532,676) 471,535 765,947 (451,475) 314,472 Right-of-use properties 69,077 (51,904) 17,173 69,760 (49,150) 20,610 Trademarks and patents 6,755 (83) 6,672 6,519 (83) 6,436 Intangible assets in progress 92,333 - 92,333 128,193 - 128,193 Total 1,172,376 (584,663) 587,713 970,419 (500,708) 469,711

Consolidated 12/31/2020 12/31/2019 Accumulated Accumulated Net book Cost amortization Net book value Cost amortization value IT systems 1,219,527 (584,533) 634,994 947,069 (494,796) 452,273 Right-of-use properties 103,764 (65,639) 38,125 98,555 (59,459) 39,096 Trademarks and patents 35,508 (83) 35,425 34,851 (83) 34,768 Intangible assets - other 3,836 (3,500) 336 3,500 (3,500) - Intangible assets in progress 115,077 - 115,077 141,419 - 141,419 Goodwill - Camicado 116,679 - 116,679 116,679 - 116,679 Total 1,594,391 (653,755) 940,636 1,342,073 (557,838) 784,235

14.5 RECONCILIATION OF NET BOOK VALUE OF INTANGIBLE ASSETS

Parent Company

Balance at Estimated Balance at Book value 12/31/2019 Additions Transfers Write-offs losses Amortization 12/31/2020 IT systems 314,472 91,907 146,358 (10) 10 (81,202) 471,535 Right-of-use properties 20,610 - (223) (872) 872 (3,214) 17,173 Trademarks and patents 6,436 236 - - - - 6,672 Intangible assets in progress 128,193 110,275 (146,135) - - - 92,333 Total 469,711 202,418 - (882) 882 (84,416) 587,713

Balance at Estimated Balance at Book value 01/01/2019 Additions Transfers Write-offs losses Amortization 12/31/2019 IT systems 271,020 284 142,397 (38,829) (10) (60,390) 314,472 Right-of-use properties 17,396 2 7,159 - (872) (3,075) 20,610 Trademarks and patents 5,934 502 - - - - 6,436 Intangible assets in progress 118,659 160,129 (149,556) (1,039) - - 128,193 Total 413,009 160,917 - (39,868) (882) (63,465) 469,711

The main natures that breakdown the group of in progress intangible accounts refer to the development and implementation of Information Technology systems and licensing.

113

Consolidated

Balance Balance at Translation at 12/31/201 Addition Estimated Amortizatio adjustment 12/31/202 Book value 9 s Transfers Write-offs losses n s 0

IT systems 452,273 124,675 160,810 (105,794) 3,788 634,994 (769) 11

Right-of-use properties 39,096 198 3,366 (6,544) 2,009 38,125 (1,460) 1,460 Trademarks and patents 34,768 657 - - - - - 35,425 Intangible assets - other - - 336 - - - - 336 Intangible assets in (164,512 141,419 134,647 - - - 3,523 115,077 progress ) Goodwill - Camicado 116,679 ------116,679

Total 784,235 260,177 - (112,338) 9,320 940,636 (2,229) 1,471

Balance Balance at Translation at 01/01/201 Addition Estimated Amortizatio adjustment 12/31/201 Book value 9 s Transfers Write-offs losses n s 9

IT systems 149,295 (524) 326,320 50,104 (176) (11) (72,735) 452,273

Right-of-use properties 12,874 16 (226) 33,358 2 (1,497) (5,431) 39,096

Trademarks and patents - - - - 34,265 503 - 34,768 Intangible assets in - (174) progress 124,454 180,858 (162,169) (1,550) - 141,419

Goodwill - Camicado - - - - 116,679 - - 116,679

Total - (924) 635,076 231,467 (1,710) (1,508) (78,166) 784,235

15 RIGHTS-OF-USE

Applicable from January 1, 2019, to unify the lease accounting method, CPC 06 (R2)/IFRS 16 requires for all lease contracts within the scope of the standard - unless they are covered by exemption - that lessees recognize assumed liabilities against respective right-of-use assets.

15.1 ACCOUNTING POLICY

The Company management chose to use the practical expedient for transition and do not consider initial costs for measurement of right-of-use assets that correspond to initial lease liability value plus initial direct costs incurred, thus maintaining the initial lease liability value. Depreciation is calculated on a straight-line basis over the remaining term of the contracts.

15.2 BREAKDOWN OF RIGHTS-OF-USE

Lease with call Lease (**) Balance at 12/31/2020 option (*) (*) Corresponds to the USEFUL LIFE: 43 years USEFUL LIFE: 2 - 13 years administrative headquarters buiding. 25,782 1,372,061 1,397,843 (**) Corresponds to the lease of commercial spaces, distribuition centers and others 25,782 1,674,256 1,700,038 administrative headquarters.

Parent Company Consolidated

114

15.3 CHANGES IN RIGHTS-OF-USE

15.3.1.1 Parent Company

(+/-) New Balance at contracts / 12/31/2019 (+) Ended (-) Balance at (*) Remeasurement contracts Depreciation 12/31/2020 Rentals 1,317,748 153,053 203,384 (302,124) 1,372,061 Rentals subject to purchase option 26,402 - - (620) 25,782 Total 1,344,150 153,053 203,384 (302,744) 1,397,843

(-) (+/-) New Adjustment contracts / Balance at Balance at – Change in (+) Ended (-) 12/31/2019 01/01/2019 rate Remeasurement contracts Depreciation (*) Rentals 1,719,658 (220,759) 59,580 45,999 (286,730) 1,317,748 Rentals subject to purchase option 27,021 - - - (619) 26,402 Total 1,746,679 (220,759) 59,580 45,999 (287,349) 1,344,150

15.3.1.2 Consolidated

(+/-) (+/-) New Translation Balance at contracts adjustment/ 12/31/2019 (+) / Ended (-) Monetary Balance at (*) Remeasurement contracts Depreciation adjustment 12/31/2020 Rentals 1,608,288 209,038 218,887 (365,789) 3,832 1,674,256 Rentals subject to purchase option 26,402 - - (620) - 25,782 Total 1,634,690 209,038 218,887 (366,409) 3,832 1,700,038

(+/-) (+/-) (-) New Translation Adjustment contracts adjustment/ Balance at Balance at – Change (+) / Ended (-) Monetary 12/31/2019 12/31/2019 in rate Remeasurement contracts Depreciation adjustment (*) Rentals 1,993,746 (280,650) 68,916 159,056 (333,163) 383 1,608,288 Rentals subject to purchase option 27,021 - - - (619) - 26,402 Total 2,020,767 (280,650) 68,916 159,056 (333,782) 383 1,634,690

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

16 IMPAIRMENT TEST OF GOODWILL AND INTANGIBLE ASSETS WITH AN INDEFINITE USEFUL LIFE

16.1 ACCOUNTING POLICY

Assets with an indefinite useful life, such as goodwill, are not subject to amortization and are tested every year to identify a possible impairment necessity. For impairment valuation purposes, assets are grouped at the lowest levels for which there are separately identifiable cash flows (Cash Generating Units - UGC), in conformity with the analysis of views used by the Management. Non- financial assets, except goodwill, that have been impaired, are subsequently reviewed for possible reversal of the impairment at each reporting date.

115

16.2 EVALUATION OF THE RECOVERABLE AMOUNT

Book value of goodwill and trademark allocated in Camicado is R$ 144,741 (R$ 144,741 on December 31, 2019).

To determine the recoverable value of Camicado, the Company used cash flow projections, before income tax and social contribution, based on financial budgets approved by management for a 10-year period considering the following assumptions:

a) Revenues: projected from 2021 to 2030, considering historical growth in sales, and an increase in sales through the plan to open new stores and growth digital initiatives; b) Costs and expenses: projected in the same year according to store dynamics and seeking synergy of expenses through the Parent Company; c) Discount rate: prepared considering information from the retail sector, in which Camicado operates. Discount rate used was 13.0% p.a. (13.0% p.a. on December 31, 2019); and d) Growth rate in perpetuity: 6.5% p.a. (6,5% p.a. on December 31, 2019).

On December 31, 2020, the Company tested these assets for impairment and concluded that there are no factors indicating losses due to impairment, given that the recoverable amount exceeded book value.

16.3 SENSITIVITY ANALYSIS

The Company carried out a sensitivity analysis on the discount rates and growth rates. Considering an increase or decrease of 1% in the discount rate and of 0.5% in the growth rate in perpetuity, as show in the table below, Company management concluded that the discounted cash flow would result in recoverable amounts.

Discount rate Perpetuity rate Probable 1% Probable 0,5% 0.5% scenario 1% increase decrease scenario increase decrease Change in discounted cash flow 13.0% (185,991) 258,951 6.5% 74,402 (119,043)

17 BORROWINGS, FINANCING AND DEBENTURES

17.1 ACCOUNTING POLICY

The balances of borrowings, financing and debentures are initially recognized at fair value upon receipt and are subsequently measured at amortized cost as provided by contract (plus charges, interest calculated by effective rate, inflation and currency fluctuation adjustments, and amortization charges incurred up to statement of financial position dates).

The balance of working capital borrowings – Law 4131, in foreign currency, are measured at fair value, reflecting current market expectations of future values using the discounted cash flow method (conversion of future cash flows into a single value). The same type of borrowings – Law 4131, in national currency, are measured by amortized cost.

116

17.2 BREAKDOWN OF BORROWINGS, FINANCING AND DEBENTURES

Parent Company Consolidated Charges Description (p.a.) Maturity 12/31/2020 12/31/2019 12/31/2020 12/31/2019 In domestic currency Debentures 7th issuance - single series (i) - - - 306,537 - 306,537 Debentures 9th issuance - single series (i) 103.9% of CDI 10/10/2022 401,649 404,466 401,649 404,466 Debentures 10th issuance - single series (i) CDI + 2.96% 04/13/2021 518,855 - 518,855 - Debentures 11th issuance – 1st series (i) CDI + 3.00% 05/05/2022 302,255 - 302,255 - Debentures 11th issuance – 2nd series (i) CDI + 3.04% 11/05/2022 201,515 - 201,515 - Debentures - Structuring costs - - (5,177) (44) (5,177) (44) Fundo do Nordeste - FNE (ii) 8,23% 06/30/2023 - 8,524 - 8,524 Fundo do Nordeste - FNE (ii) - - - - - 684 BNDES (iii) - - - 3,289 - 3,289 BNDES (iii) - - - 1,750 - 1,750 Working capital - secured account - - - - - 51,420 Working capital – Law 4131 (iv) CDI + 3.28% 03/24/2021 313,740 - 313,740 - Working capital – CCB (v) CDI + 2.65% 07/07/2022 153,376 - 153,376 - Working capital – CCB (v) 148.0% of CDI 11/25/2022 100,033 - 100,033 - Working capital – CCB (v) 140.0% of CDI 11/25/2022 401,005 - 401,005 - Working capital – Structuring costs - - (3,607) - (3,607) - In foreign currency Working capital – Law 4131 (vi) - - - 101,039 - 101,039 Working capital – Law 4131 (vi) - - - 172,804 - 172,804 Working capital – Law 4131 (vi) US$ + 2.57% 01/27/2021 39,586 - 39,586 - Working capital – Law 4131 (vi) US$ + 3.70% 01/07/2021 - - 55,121 43,140 Working capital – Law 4131 (vi) US$ + 0.76% 01/22/2021 207,991 - 207,991 - Working capital – Law 4131 (vi) - - - - - 61,525 (+/-) Swap – working capital (vii) - - - (5,546) - (5,546) (+/-) Swap – working capital (vii) - - - 7,661 - 7,661 (+/-) Swap – working capital (vii) 108.6% CDI 01/27/2021 (7,433) - (7,433) - (+/-) Swap – working capital (vii) 106,95% CDI 01/07/2021 - - (15,666) (3,281) (+/-) Swap – working capital (vii) 112.0% CDI 01/22/2021 (40,229) - (40,229) - (+/-) Swap – working capital (vii) - - - - - (305) Total 2,583,559 1,000,480 2,623,014 1,153,663

Current liabilities 1,037,626 594,394 1,077,081 709,022 Noncurrent liabilities 1,545,933 406,086 1,545,933 444,641 Total 2,583,559 1,000,480 2,623,014 1,153,663

(i) In addition to the agreement in force on December 31, 2019 relating to the 9th issue, in April 2020, R$ 500,000 were raised upon the 10th issue for a period of 2 years. In May 2020, we raised R$ 300,000 upon the 11th issue – 1st series, for a period of 2 years and R$ 200,000 upon the 11th issue – 2nd series for a period of 2.5 years. The funds raised were allocated to reinforcement of working capital and maintenance of a strategic minimum cash level.

(ii) In November 2020, the Company settled in advance the financing agreements entered into with Banco do Nordeste.

(iii) In July, 2020, the Company settled the agreement entered into with the Brazilian Development Bank (BNDES).

(iv) In March 2020, the Company and Banco Santander entered into a borrowing agreement under Law No. 4131 in the amount of R$ 300,000 for a period of 1 year. These funds were allocated to maintenance of a minimum strategic cash level.

(v) In July 2020, the Company took out a loan in Bank Credit Notes (CCB) from Banco Safra amounting to R$ 150,000 for a period of 2 years. In November 2020, the Company raised another loan from Banco Safra amounting to R$ 100,000 for a period of 2 years and R$ 400,000 from Banco Itaú for a period of 2 years, intended for working capital reinforcement and maintenance of minimum strategic cash level.

117

(vi) In addition to the agreements existing on December 31, 2019, the Company entered into two agreements in foreign currency, to wit an agreement with Citibank amounting to US$ 40,000, equivalent to R$ 167,080 and an agreement with Tokyo Bank amounting to US$ 7,600 equivalent to R$ 32,034. These funds are intended to maintain minimum cash and support the Company’s Share Repurchase Program (Note 30).

(vii) Swap transactions in foreign currency (Law 4131) are hedging against foreign exchange rate fluctuations.

Note 37 presents changes in parent company and consolidated borrowings.

The covenants and settlement schedule in accordance with the contractual cash flow (principal plus estimated future interest) are shown in Note 6.2.

18 FINANCING – FINANCIAL SERVICE OPERATIONS AND GUARANTEES

18.1 FINANCING - FINANCIAL SERVICE OPERATIONS

Parent Company Consolidated financing Charges (p.a.) Maturity 12/31/2020 12/31/2019 12/31/2020 12/31/2019 In domestic currency Secured account - - - 37,740 - 37,740 Interbank Deposit Certificates (i) 210.0% of CDI 04/2021 - - 51,577 - Interbank Deposit Certificates (i) CDI + 3.5% 04/2021 - - 103,850 - Interbank Deposit Certificates (i) 181.0% of CDI 03/2021 - - 51,261 - Interbank Deposit Certificates (i) 209.0% of CDI 03/2021 - - 51,861 - Interbank Deposit Certificates (i) 240.0% of CDI 05/2021 - - 10,331 - Financial bills (ii) 104.1% of CDI 08/2022 - - 315,203 306,370 Bank Credit Notes (iii) CDI + 3.5% 05/2022 - - 31,083 - Bank Credit Notes (iii) 160.00% of CDI 09/2022 - - 20,187 - Interbank Deposit Certificates (iv) 130.74% of CDI 06/2021 - - 72,095 - Interbank Deposit Certificates (iv) 137.71% of CDI 06/2022 - - 54,517 - In foreign currency Working capital – Law 4131 Bacen (iv) - - - - - 142,830 (+/-) Swap – working capital - - - - - 4,426 Total - 37,740 761,965 491,366

Current liabilities - 37,740 341,390 184,996 Noncurrent liabilities - - 420,575 306,370 Total - 37,740 761,965 491,366

(i) Through its indirect subsidiary Realize CFI, the Company issued Interbank Deposit Certificates amounting to R$ 99,600 in March 2020 and R$ 10,000 in May 2020, both of that for a period of 1 year, at Banco Votorantim. In April 2020, the Company issued R$ 50,000 for a period of 1 year at Banco Itaú and in April 2020, issued R$ 100,000 for a period of 1 year at Banco Safra. These funds aim at reinforcing minimum cash and supporting the ordinary course of business.

(ii) Through its indirect subsidiary Realize CFI, the Company issued Financial Bills in August 2019 for a period of 3 years for private distribution to finance operations and the ordinary course of business.

(iii) Indirect subsidiary Realize CFI entered into a working capital agreement in CCBs in May 2020 with Banco de BOCOM BBM amounting to R$ 30,000 and in September 2020, to R$ 20,000, both of which for a period of 2 years, to fund its operations and the normal course of business, in which the parent company figured as guarantor.

(iv) Indirect subsidiary Realize CFI issued Bank Deposit Certificates (CDB) at XP Investimentos amounting to R$ 70,811 for a period of one year and R$ 54,806 for a period of 2 years. These funds aim at financing operations and the ordinary course of business.

18.2 GUARANTEES

The Parent Company figures as guarantor and is jointly liable for all (main and accessory) obligations deriving from Financial Bill and Bank Credit Note operations (CCB), as well as from an Interbank Deposit Certificate operation (Note 26.1.9).

118

19 LEASES PAYABLE

19.1 ACCOUNTING POLICY

Concerning the contracts that were within the scope of CPC 06 (R2)/IFRS 16, only minimum fixed rent amount was considered to be a lease component for liability evaluation purposes. Measurement of lease liabilities corresponds to total future fixed rent payments (gross of taxes), discounted at an incremental interest rate. As mentioned in Note 3.6.1, management identified the necessity of reassess the Company’s accounting policy, having begun to use nominal discount rates for measuring its lease agreements, focusing in aligning this accounting policy to the practice most commonly adopted in the market, including comparable companies in Brazil and abroad. The nominal discount rate corresponds to reference market rates plus risk spread for fund-raising at amounts that represent total investments for opening new stores.

The Management assessed possible impacts of Covid-19 and concluded that future variations in economic indices affected the computation of the discount rate only for 50 new lease agreements that came into effect since March 2020, because the store openings and agreement renewals in the first quarter occurred prior to Covid-19 events. The other discount rates did not change.

19.2 BREAKDOWN OF LEASES PAYABLE

Parent Company Consolidated 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Restated (*) Restated (*) Rentals subject to purchase option (**) 38,335 35,428 38,335 35,428 Rentals 1,493,312 1,398,996 1,824,052 1,703,933 Total 1,531,647 1,434,424 1,862,387 1,739,361

Current liabilities 410,998 373,555 496,583 447,685 Noncurrent liabilities 1,120,649 1,060,869 1,365,804 1,291,676 Total 1,531,647 1,434,424 1,862,387 1,739,361

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

(**) The discount rate for rentals subject to a purchase option is in compliance with the rental agreement referring to the administrative office building, entered into July 2012 and adjusted based on the accumulated variation of annual Brazil’s National Consumer Price Index (INPC).

19.3 CHANGES IN LEASES PAYABLE

Parent Company

(+/-) New Balance at contracts (+) (-) Lease 12/31/2019 (+) / Ended Lease consideration Balance at (*) Remeasurement contracts charges amounts (**) 12/31/2020 Rentals 1,398,996 153,053 203,384 119,024 (381,145) 1,493,312 Rentals subject to purchase option 35,428 - - 5,267 (2,360) 38,335 Total 1,434,424 153,053 203,384 124,291 (383,505) 1,531,647

(+/-) New contract (-) s / (+) Balance at Adjustmen (+) Ended Lease (-) Lease Balance at 01/01/201 t – Change Remeasuremen contract charge consideratio 12/31/201 9 in rate t s s n amounts 9 (*) Rentals 1,719,658 (220,759) 59,580 45,999 118,447 (323,929) 1,398,996 Rentals subject to purchase 33,940 - - - 35,428 option 4,423 (2,935) Total 1,753,598 (220,759) 59,580 45,999 122,870 (326,864) 1,434,424

119

Consolidated

(+/-) (+/-) New Translation Balance at contracts (+) (-) Lease adjustments/ 12/31/2019 (+) / Ended Lease consideration Exchange Balance at (*) Remeasurement contracts charges amounts (**) fluctuation 12/31/2020 Rentals 1,703,933 209,038 218,887 142,832 (461,478) 10,840 1,824,052 Rentals subject to purchase option 35,428 - - 5,267 (2,360) - 38,335 Total 1,739,361 209,038 218,887 148,099 (463,838) 10,840 1,862,387

(+/-) Translatio n adjustme nts/ (-) (+/-) New (-) Lease Exchang Adjustment (+) contracts / considerat e Balance at Balance at – Change in Remeasurem Ended (+) Lease ion fluctuatio 12/31/2019 01/01/2019 rate ent contracts charges amounts n (*) Rentals 1,993,746 (280,650) 68,916 159,056 136,504 (373,565) (74) 1,703,933 Rentals subject to purchase option 33,940 - - - 4,423 (2,935) - 35,428 Total 2,027,686 (280,650) 68,916 159,056 140,927 (376,500) (74) 1,739,361

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

(**) The Management Company elected the practical expedient (further details Note 5.3) and recognized in result consideration discounted amounting to R$ 104,488 – Parent Company and R$ 128,927 consolidated.

19.4 FUTURE COMMITMENTS

| 1,531,647 | | (969,770) | 421,654 387,522 326,057 274,640 1,091,544 2,501,417

CHARGES FROM After Balance at 2021 2022 2023 2024 ADJUSTMENT TO 2025 12/31/2020 PRESENT VALUE

502,153 462,571 392,912 331,100 1,224,122 2,912,858 | (1,050,471) | | 1,862,387 | Parent Company Consolidated

Additional information

In order to comply with CVM SNC/SEP Memorandum No. 02/2019, we disclosed the minimum inputs for projecting the nominal rate and nominal cash flow model recommended by the CVM.

The nominal discount rate corresponds to B3 S.A. - Brasil, Bolsa, Balcão - future market quotations reference in DI vs. Pre + risk spread for funding at amounts that represent total investments for the opening of new stores.

Projected inflation quotations use the same discount rate criterio and are stated from cash flow calculation purposes, as shown in the graph beside.

120

See below the payment flow in accordance with the weighted average term, which corresponds to the respective rates presented in the graph above.

Consolidated Weighted average period Contractual (*) The Company calculated the (months) (*) flow 2021 2022 2023 2024 2025 onwards weighted average term of the contractual flow for the purpose of Up to 12 2,805 1,962 843 - - - rate quotation, as the contracts 155,799 103,377 48,385 4,037 - - 13-24 have monthly amortizations, 25-36 459,260 133,738 137,740 110,947 52,688 24,147 reduncing the average term of the 37-48 387,533 73,626 73,941 74,410 74,507 91,049 operaction nad risk to the creditor.

49-60 597,798 72,939 78,925 79,311 79,323 287,300 (**) Refers to the future contractual 61-72 1,034,819 104,899 113,149 113,277 113,530 589,964 lease flow with a purchase option 73-84 23,648 2,097 2,097 2,097 2,097 15,260 that has an implied discount rate of 8.81% p.a. signed in July 2012 for the 85-96 58,099 4,277 4,277 4,277 4,277 40,991 administrative headquarters >97 months 193,097 5,238 3,214 4,556 4,678 175,411 building. (**) Total 2,912,858 502,153 462,571 392,912 331,100 1,224,122

On December 31, 2020, the potential credit of PIS and COFINS about the contractual gross flow is R$ 269,439 and when adjusted to present value using the weighted average term is R$ 185,058.

20 SUPPLIERS

20.1 ACCOUNTING POLICY

Installment purchase transactions were adjusted to present value at transaction date. The discount rate used for adjusting inventory balances to present value is the average discount rate observable in the market informed by the Central Bank of Brazil for trade notes. The rate used was of 1.14% p.m. (0.99% p.m. at December 31, 2019, when the weighted average cost of capital was used). Present value adjustment is recorded in suppliers and its reversal is matched against cost of sales, due to fruition of term in the case of suppliers. Suppliers are measured at amortized cost, using the effective interest rate method.

20.2 BREAKDOWN

Parent Company Consolidated 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Restated (*) Restated (*) Suppliers - commercial 884.405 742.264 1.012.465 822.149 Adjustment to present value (7.688) (4.805) (9.143) (5.212) Suppliers – use and consumption 392.694 189.993 455.390 233.572 Rents payable 34.429 25.919 41.643 31.276 Total 1,303,840 953,371 1,500,355 1,081,785

Current liabilities 1,208,337 953,371 1,404,852 1,081,785 Noncurrent liabilities 95,503 - 95,503 - Total 1,303,840 953,371 1,500,355 1,081,785

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.

On December 31, 2020, pre-payments made to suppliers whose original maturity was subsequent to this date totaled R$ 209,288 (R$ 278,951 at December 31, 2019). The discounts obtained from these pre-payments, for being related to supply of goods, are recorded as reduction of the cost of sales.

The Parent Company has a confirming agreement with Santander and Bradesco to manage its commitments with suppliers, which remain as “Suppliers” until this obligation is terminated with a balance of R$ 58,960 at December 31, 2020 (R$ 47,217 at December 31, 2019). The composition of the operation’s balance was reviewed, and it was concluded that there was no change in terms, prices or conditions and – as there are no impacts due to the charges practiced by the financial institution – the operation is shown in the “Suppliers” account.

121

To honor the Company’s commitment with its supplier chain, the management took certain measures to mitigate the impacts of Covid-19, such as not changing the payment policy adopted and maintaining the receivable operations with all resale suppliers.

Changes in adjustment to present value of suppliers

Parent Company Consolidated Balance at January 1, 2019 (4,548) (4,966) Additions (67,471) (72,105) Write-offs 67,214 71,859 Balance at December 31, 2019 (4,805) (5,212) Additions (63,520) (68,723) Write-offs 60,637 64,792 Balance at December 31, 2020 (7,688) (9,143)

21 TAX OBLIGATIONS

Parent Company Consolidated 12/31/202 12/31/201 12/31/202 12/31/201 0 9 0 9 Income tax and social contribution 91,895 164,355 93,983 299,927 ICMS payable 198,906 206,240 214,857 219,155 Contribution Taxes on Gross Revenue for Social Integration Program (PIS) 57,772 80,830 64,658 92,701 and Social Security Financing (COFINS) Taxes payable - Foreign subsidiaries - - 4,900 1,684 Other taxes 17,747 15,552 24,532 23,256 Total 366,320 466,977 402,930 636,723

22 SOCIAL AND LABOR OBLIGATIONS

Parent Company Consolidated 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Salaries payable 39,816 40,873 47,944 49,448 Employee profit sharing 23,175 91,815 24,203 93,239 Provision for vacation pay and bonus 66,186 71,350 80,224 82,932 Social charges 64,226 72,510 74,445 81,263 Total 193,403 276,548 226,816 306,882

23 PROVISION FOR TAX, CIVIL AND LABOR RISKS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

23.1 ACCOUNTING POLICY

The Company and its subsidiaries are party to tax, labor and civil lawsuits and administrative proceedings ongoing, arising in the normal course of operations and based on legal advisors’ opinion, management set up a provision considered sufficient to cover estimated losses.

Tax provisions

Civil and labor provisions

122

23.2 BALANCES AND CHANGES IN THE PROVISION FOR TAX, CIVIL AND LABOR RISKS

Parent Company Judicial Civil Labor Tax deposits Total Balance at December 31, 2019 22,996 34,918 29,712 (6,281) 81,345 Provisions/reversals 5,206 21,834 (4,179) 392 23,253 Restatement - - 558 199 757 Balance at December 31, 2020 28,202 56,752 26,091 (5,690) 105,355

Current liabilities 23,944 28,160 - - 52,104 Noncurrent liabilities 4,258 28,592 26,091 (5,690) 53,251 Total 28,202 56,752 26,091 (5,690) 105,355

Consolidated Judicial Civil Labor Tax deposits Total Balance at December 31, 2019 30,868 36,767 35,499 (11,018) 92,116 Provisions/reversals 10,037 22,237 (3,322) 393 29,345 Restatement - - 636 199 835 Balance at December 31, 2020 40,905 59,004 32,813 (10,426) 122,296

Current liabilities 36,647 30,412 - - 67,059 Noncurrent liabilities 4,258 28,592 32,813 (10,426) 55,237 Total 40,905 59,004 32,813 (10,426) 122,296

Most significant tax provisions refer to:

a) Disallowance of ICMS credit right in acquisitions from suppliers considered disreputable; b) Disallowance of ICMS credit right on energy, acquisitions of goods, rate difference, among others; c) Increase in SAT (Occupational Accident Insurance) rate and establishment of FAP (Accident Prevention Factor); d) Disallowance of expense with payment of interest on equity of prior years; and e) Requirement of INSS/IRRF on non-salary portions.

Regarding civil and labor provisions, the Company and its subsidiaries are party to civil and labor lawsuits that have consumption- related nature with different objects.

Management analyzed the impacts of Covid-19 and concluded that there are no factors that indicate the necessity of increase the provision for tax, civil and labor contingencies.

23.3 CONTINGENT TAX LIABILITIES

According to our legal advisors, contingent liabilities plus interest and inflation adjustment are as follows:

Parent Company Consolidated Nature 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Tax 322,887 279,148 355,549 290,693

Significant lawsuits related to contingent liabilities as of December 31, 2020 and December 31, 2019 are as follows:

a) ICMS – Disreputable suppliers – Proceedings related to supposed undue credit-taking of ICMS related to the acquisition of goods from suppliers considered disreputable by the tax authorities. The restated amount of the lawsuits was R$ 168,572 – Parent Company and R$ 171,245 - Consolidated (R$ 138,440 – Parent Company and R$ 138,705 - Consolidated at December 31, 2019).

b) Social Security Tax (INSS)/Withholding Income Tax (IRPF) non-wage installments – Refers to tax assessment notices filed for charging social security contribution on amounts considered by the Company as not taxable as well as application of ex- officio fine because the income tax was not withheld on amounts. The notice relating to INSS was ended in the administrative

123

phase and is now subject to a debt annulment action. The restated amount of the lawsuit was R$ 38,143 - Parent Company and Consolidated (R$ 37,544 – Parent Company and Consolidated at December 31, 2019).

c) Corporate Income Tax (IRPJ)/Social Contribution Tax on Net Profit (CSLL) - Interest on equity of formers years (JSCP) – Tax collection claim referring to IRPJ/CSLL, on disallowance of expenses with payment of JSCP. The restated amount was R$ 28,252 – Parent Company and Consolidated (R$ 26,883 - Parent Company and Consolidated at December 31, 2019).

d) ICMS - Disallowance of third-party credits - Disallowance of ICMS credits acquired from third parties in Rio de Janeiro State. The restated amount was R$ 19,375 - Parent Company and Consolidated (R$ 19,132 - Parent Company and Consolidated at December 31, 2019).

e) ICMS – inventory breakage – Refers to tax assessment notices and tax enforcements for collection of ICMS deriving from differences in tax and accounting inventories calculated through survey of inventory quantities. The restated amount of the lawsuits was R$ 24,251 - Parent Company and R$ 25,762 - Consolidated (R$ 20,969 - Parent Company and R$ 22,428 - Consolidated at December 31, 2019).

f) ICMS - Centralization – ICMS delinquency notices received in January 2020 deriving from alleged errors in centralization of debt balances of establishments centralized in a centralizing establishment. The restated amount was R$ 19,054 in the Consolidated as at December 31, 2020.

g) Other contingent liabilities with the restated amount totaling R$ 44,294 in the Parent Company and R$ 53,718 in Consolidated (R$ 36,180 in the Parent Company and R$ 45,001 in the Consolidated at December 31, 2019) refer to various matters in the federal, state and municipal spheres.

23.4 CONTINGENT CIVIL AND LABOR LIABILITIES

For civil and labor lawsuits, the history of obligations effectively settled is considered, since they refer to massified civil lawsuits of a consumer civil nature and of diverse labor natures, whose proceeding amounts frequently do not reflect contingency value. Thus, the provision corresponds to exposure to this kind of risk.

23.5 CONTINGENT ASSETS

Camicado’s proceeding was awarded a favorable decision by the Federal Regional Court of the 3rd Chapter, expressly recognizing the 5-year statute of limitations (the action was judged in March/2017 and its effects retroact to April/2012) and defining that “ICMS to be excluded from the PIS/COFINS base is the amount informed in the invoice”. In light of this decision, the federal government filed an appeal with the Brazilian Supreme Court (STF) and the proceeding is currently suspended, awaiting the leading case to be defined in STF. Since this proceeding is still pending a final court decision, it is not possible to recognize the asset related to credits to be surveyed beginning as of 5 years preceding the filing of lawsuits up to March 2017 (Brazilian Supreme Court - STF decision date), estimated at R$ 15,829. The amounts referring to calculation periods from March 2017 onwards, whose likelihood of an unfavorable outcome is rated as remote by Company legal advisors, have been recorded in P&L since then.

23.6 CVM/SNC/SEP MEMORANDUM CIRCULAR 01/2021 - PIS AND COFINS TAX CREDITS ON INPUTS

Based on the High Court of Justice (STJ) decision on Appeal to the High Court REsp 1.221.170/PR, which defined the concept of input for PIS and COFINS credit calculation purposes, taking into consideration the criteria relating to the essential nature or significance of the expense for the development of the taxpayer’s economic activity, and prior decisions issued by the Board of Tax Appeals (CARF), by means of its Higher Board, subsequently to STJ decision, ensuring the right to PIS and COFINS credits on inputs for taxpayers primarily engaged in distribution and resale of goods (Decision 9303007.702), the Company recorded PIS and COFINS credits relating to expenses considered essential or significant for its activity amounting to R$ 22,113 (R$ 7,546 in other operating income (expenses) and R$ 14,567 in selling expenses) as compared with R$ 10,078 in 2019 (R$ 6,050 in other operating income (expenses) and R$ 4.028 in selling expenses) (Notes 34.1 and 34.3). Given the opinion of Company legal advisors, in the sense that the likelihood of an outflow of funds due to recording of such credits is possible or remote, no provision was set up, under the terms of CPC 25/IAS 37.

24 FINANCIAL INSTRUMENTS

Pursuant to internal policy approved by management, derivative financial instruments are entered into in order to hedge the currency risk taken in import orders, PPE and foreign borrowings. The classification of its non-derivative financial assets and liabilities is determined upon initial recognition, pursuant to the business model in which the asset is managed and its contractual cash flow characteristics under CPC 48/IFRS 9. Financial liabilities are measured according to their nature and purpose.

124

24.1 ACCOUNTING POLICY

Derivatives are recognized at fair value through other comprehensive income, except Swaps: The fair values of derivative financial instruments are determined based on the macro-economic scenario indicators. The method for recognizing the resulting gain or loss depends on whether the derivative is or is not designated as a hedge instrument. If so, the method depends on the nature of the item that is being hedged. The Company adopts hedge accounting and assigns forward contracts (NDF) as cash flow hedge. Early in each transaction, the relationship between the hedge instruments and the hedge-protected items is documented, risk management objectives, strategy for conducting several hedge transactions and Company’s evaluation on early and continued basis of the economic relation between the instrument and hedged item.

Cash flow hedge

The Company applies cash flow hedge accounting to protect itself against exchange-rate change risk deriving from import orders not yet paid. The effective portion of the change in the fair value of designated derivatives and qualified as cash flow hedge, and not settled, is recognized in equity as “Equity valuation adjustments” in other comprehensive income. This portion is realized upon elimination of risk for which derivative was contracted. Upon settlement of financial instruments, gains and losses previously deferred in equity are transferred from and included in initial measurement of asset’s cost.

Swap

In swap transactions not designed for hedge accounting, gains or losses are recognized in finance income (costs).

24.2 FINANCIAL INSTRUMENTS BY CATEGORY

Parent Company

Fair value through other comprehensive Amortized cost Fair value income (*) Total Financial assets Cash and cash equivalents - 1,761,439 - 1,761,439 Interest-earning bank deposits - 139,212 - 139,212 Trade accounts receivable 1,839,223 - - 1,839,223 Derivative financial instruments (hedge) - - 4,896 4,896 Financial liabilities Derivative financial instruments (hedge) - - (30,327) (30,327) Borrowings, financing and debentures (2,383,644) (199,915) - (2,583,559) Leases payable (1,531,647) - - (1,531,647) Suppliers (1,303,840) - - (1,303,840) Obligations with credit card administrators (15,711) - - (15,711) Balance at December 31, 2020 (3,395,619) 1,700,736 (25,431) (1,720,314)

Fair value through other comprehensive Amortized cost Fair value income (*) Total Financial assets Cash and cash equivalents (**) - 844,755 - 844,755 Interest-earning bank deposits (**) - 167,099 - 167,099 Trade accounts receivable 1,912,774 - - 1,912,774 Derivative financial instruments (hedge) - - 4,244 4,244 Financial liabilities Derivative financial instruments (hedge) - - (6,680) (6,680) Borrowings, financing and debentures (724,522) (275,958) - (1,000,480) Financing - financial service operations (37,740) - - (37,740) Leases payable (**) (1,434,424) - - (1,434,424) Suppliers (**) (953,371) - - (953,371) Obligations with credit card administrators (26,919) - - (26,919) Total at December 31, 2019 (1,264,202) 735,896 (2,436) (530,742)

125

Consolidated

Fair value through other Amortized comprehensive cost Fair value income (*) Total Financial assets Cash and cash equivalents - 2,066,781 - 2,066,781 Interest-earning bank deposits - 605,572 - 605,572 Trade accounts receivable 3,811,668 - - 3,811,668 Derivative financial instruments (hedge) - - 5,435 5,435 Financial liabilities Derivative financial instruments (hedge) - - (31,428) (31,428) (2,623,01 (2,383,644) (239,370) - Borrowings, financing and debentures 4) Financing - financial service operations (761,965) - - (761,965) (1,862,38 (1,862,387) - - Leases payable 7) (1,500,35 (1,500,355) - - Suppliers 5) (1,193,16 (1,193,168) - - Obligations with credit card administrators 8) (1,482,86 (3,889,851) 2,432,983 (25,993) Balance at December 31, 2020 1)

Fair value through other comprehensive Amortized cost Fair value income (*) Total Financial assets Cash and cash equivalents (**) - 980,954 - 980,954 Interest-earning bank deposits (**) - 391,348 - 391,348 Trade accounts receivable 3,825,961 - - 3,825,961 Derivative financial instruments (hedge) - - 4,382 4,382 Financial liabilities Derivative financial instruments (hedge) - - (7,764) (7,764) (1,153,663 (776,626) (377,037) - Borrowings, financing and debentures ) Financing - financial service operations (344,110) (147,256) - (491,366) (1,739,361 (1,739,361) - - Leases payable (**) ) (1,081,785 (1,081,785) - - Suppliers (**) ) Obligations with credit card administrators (985,298) - - (985,298) Total at December 31, 2019 (1,101,219) 848,009 (3,382) (256,592)

(*) Fair value through other comprehensive income, pursuant to CPC 48/ IFRS 9 classification.

(**) Restatement of comparative balances due to the change in the accounting policy for leases and exclusive investment funds, as described in Notes 3.6.1.1 and 3.6.1.2.

24.3 FAIR VALUE MEASUREMENT AND HIERARCHY

Management assessed the matters relating to the impacts of Covid-19 and concluded that future variations in CDI, inflation and US dollar quotation are already comprised in the methodology for calculating the fair value of financial instruments reflected in the equity position of financial assets and liabilities.

126

The Company measures fair value of debentures and financing – financial service operations - for disclosure purposes.

Parent Company

12/31/2020 12/31/2019 Financial assets and liabilities Fair value Book balance Fair value Book balance Debentures (1,410,113) (1,419,097) (707,982) (710,959) Working capital – Law 4131 Bacen – in Reais (313,300) (313,740) - - Working capital – Bank Credit Notes (659,539) (650,807) - - Financing - financial service operations - - (37,740) (37,740) Total (2,382,952) (2,383,644) (745,722) (748,699)

Consolidated

12/31/2020 12/31/2019 Financial assets and liabilities Fair value Book balance Fair value Book balance Debentures (1,410,113) (1,419,097) (707,982) (710,959) Working capital – Law 4131 Bacen – in Reais (313,300) (313,740) - - Working capital – Bank Credit Notes (659,539) (650,807) - - Financing - financial service operations (745,768) (761,965) (343,857) (344,110) Total (3,128,720) (3,145,609) (1,051,839) (1,055,069)

Financial assets and liabilities of the Company are classified in “Level 2” of the fair value hierarchy versus book balances.

Level 2 - Inputs that are observable for assets or liabilities, whether directly or indirectly, except for prices quoted (not adjusted) in active markets for identical assets or liabilities to which the Company may have access on the measurement date.

24.4 DERIVATIVE FINANCIAL INSTRUMENTS

Management of these instruments is based on operating strategies, aimed at liquidity, profitability and security. Foreign currency exchange, Non-Deliverable Forward (NDF) and Swap contracts are used as a hedging instrument for its exposure to volatility of foreign currency exchange and investments in derivatives or any other financial instruments are not made for speculation purposes. Breakdown of derivatives is segregated between items designated to hedge accounting (cash flow hedge) and not designated to hedge accounting:

Parent Company Consolidated Description of derivatives 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Designated for hedge NDF (Import orders) (25,431) (2,436) (25,993) (3,381) Not designated for hedge Exchange rate swap 47,662 (2,115) 63,328 (2,955) Total 22,231 (4,551) 37,335 (6,336)

Swaps are stated in the balance of borrowings, financing and debentures (Note 17.2) and financing - financial service operations (Note 18.1), whereas they are in compliance with CPC 40/ IFRS 7.

Derivatives for hedge accounting

24.4.1.1 NDF (Non-Deliverable Forward)

Hedge Instrument Hedged item Currenc Notional Maturity dates y amount Fair value (*) Transaction Estimated maturity 01/29/2021 to 01/29/2021 to USD 120,267 Goods import order 09/30/2021 (28,558) 09/30/2021 01/29/2021 to Contract for import of fixed 01/29/2021 to EUR 19,500 08/31/2021 3,127 assets 08/31/2021 Total – Parent 139,767 Company (25,431)

127

03/31/2021 to 14,380 03/31/2021 to USD Goods import order 08/31/2021 (562) 08/31/2021

Total - Consolidated 154,147 (25,993)

(*) Non-Deliverable Forward methodology is the cash flow discount in projections from “B3 S.A.- Brasil, Bolsa e Balcão”.

During the year, NDF transactions used to hedge the cash flow risk of import orders were effective and complied with the levels established by CPC 48/IFRS 9.

24.4.1.2 Cash flow

The cash flows related to import orders of goods for resale are initially recorded in inventories and subsequently throughout the operation, in profit or loss as a cost of goods sold.

The cash flow from the import orders of future operations exposed to foreign currency hedged by derivatives as it is shown next:

Consolidated Within 3 months 4-6 months 7-12 months Total Resale goods import orders 464,033 215,482 19,061 698,576 Notional amount - US$ 89,440 41,533 3,674 134,647

Expected dollar rate for the next disclosure: R$ 5,1882

Consolidated Within 3 months 4-6 months 7-12 months Total Contract for import of fixed assets 80,507 - 44,087 124,594 Notional amount - EUR 12,600 - 6,900 19,500

Expected Euro rate for the next disclosure: R$ 6,3895

Derivatives not for hedge accounting

24.4.2.1 Swaps

Amount receivable (payable) Instrument Maturity Receivables Payables Notional amount 12/31/2020 12/31/2019 Exchange rate swap Working capital – Law 4131 - - - - - 5,546 Working capital – Law 4131 - - - - - (7,661) Working capital – Law 4131 01/2021 US$ + 2.5699% 108.6% CDI US$ 7.600 7,433 - Working capital – Law 4131 01/2021 US$ + 0.7597% 112.0% CDI US$ 40.000 40,229 - Total – Parent Company 47,662 (2,115)

Exchange rate swap Working capital – Law 4131 01/2021 US$ + 3.6994% 106.95% CDI US$ 10.515 15,666 3,281 Working capital – Law 4131 - - - - - (4,426) Working capital – Law 4131 - - - - - 305 Total - Consolidated 63,328 (2,955)

Changes in swaps

Parent Company Consolidated Balance at January 1, 2019 37,181 39,833 Swap adjustment payment 2,855 4,978 Swap adjustment receipt (33,580) (41,773) Change in fair value (8,571) (5,993)

128

Balance at December 31, 2019 (2,115) (2,955) Swap adjustment payment 3,555 3,715 Swap adjustment receipt (122,289) (288,794) Change in fair value 168,511 351,362 Balance at December 31, 2020 47,662 63,328

24.5 CREDIT RISK

Consolidated Rating - National Scale 12/31/2020 12/31/2019 brAAA 40,283 13,855 According to the major risk rating brA+ 5,435 - agencies, in the table beside are shown brA- 23,045 - the ratings of credit risk of derivative Total - Derivative financial instrument (assets) 68,763 13,855 financial instruments.

25 OTHER OBLIGATIONS

Parent Company Consolidated 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Prepaid revenues (i) 247 1,439 27,278 32,001 Obligations with customers (ii) 31,952 23,749 98,639 51,637 Obligations related to transactions w/ insurance (iii) 7 2,143 6,080 8,411 Transfer of operation of financial products (iv) 7,980 3,117 - - Acquisition of ICMS credits (v) 13,999 13,245 14,083 13,458 Marketplace partners (vi) - - 4,694 1,041 Other obligations (vii) 10,386 12,164 19,865 11,976 Total 64,571 55,857 170,639 118,524

Current liabilities 64,571 55,610 145,835 94,413 Noncurrent liabilities - 247 24,804 24,111 Total 64,571 55,857 170,639 118,524

i) Advance of payroll agreements from financial institution, insurance exclusivity premiums with the insurance company and Co-branded card (“Meu Cartão”) incentive premium. ii) Balances in favor to clients (credits may be used as payment for purchases in the Company) and goods bought from bridal registries, but not yet delivered. iii) Advances related to insurance operations related to exclusivity contract and insurance premiums paid by clients to be transferred to the insurance company. iv) Transfers referring to Renner card operations with Realize CFI and transfers from Camicado’s sales. v) Balances payable corresponding to the acquisition of ICMS credits. vi) Transfers to sales people for marketplace services at Camicado. vii) Balances payable corresponding to royalties, payroll advance borrowings, among others.

26 TRANSACTIONS WITH RELATED PARTIES

The Parent Company, subsidiaries and related persons perform transactions among themselves, related to the financial, business and operational aspects of the Company. Most significant transactions are as follows:

26.1 PARENT COMPANY’S CONTEXT

Rent agreements

In August 2018, we updated rent agreements by means of an addendum with subsidiary Dromegon referring to the buildings of the stores located in downtown Porto Alegre, Santa Maria and Pelotas, effective for ten years, which may be renewed. Amounts were set at 4.29%, 4% and 4%, respectively, on gross monthly sales of stores.

Quick withdrawal extension service agreement

129

The Company offers Renner’s customers financial services by means of its indirect subsidiary, Realize CFI and is a party in the transaction through its operating infrastructure, providing bank correspondent product services.

Use of Renner Card and Co-branded card (“Meu Cartão”) in Camicado

One of the main synergy drivers in Camicado is the acceptance of Renner Card (CCR) and Co-branded card (“Meu Cartão”).

Renner Credit Card Operations - Realize

Since April 2019, in line with the reorganization strategy and business specialization, the sales through the Renner Credit Card (Private Label) started being recorded in indirect subsidiary Realize CFI.

Agreement to apportion corporate costs and expenses

To optimize the corporate structure, Lojas Renner and its subsidiaries entered into agreements among themselves to share their structures, mainly focused on sharing back-office and corporate structures. For foreign subsidiaries, the sharing of corporate expenses is charged by the parent company in the form of service exports.

Import intermediation

The Parent Company carries out commercial transactions with its subsidiary LRS, which operates as an import intermediary, in line with the strategy of approximation and development of international base of suppliers. Revenue from intermediation commission was recognized at a price compatible with market conditions.

Export of goods

The Parent Company carries out commercial transactions with its subsidiaries LRU and LRA related to the export of goods for building inventories for retail transactions in these countries, priced considering market conditions.

Purchase of ICMS credits

On May 29, 2019, a pledge agreement was granted for the assignment of ICMS credits in the amount of R$ 9,446 on behalf of subsidiary Camicado to the Parent Company, which paid the present value of R$ 9,109 using a rate of 0.5% per month. These tax credits are in the process of approval for qualification with the Treasury Department of the State of São Paulo for transfer to the Parent Company, at which time the effect arising from the negative goodwill of this operation will be recognized. On May 20, 2020, this agreement was amended to change the taxable event and the term for the credits to be transferred between interdependent companies to March 15, 2021.

Guarantees

The parent company figures as guarantor and is jointly liable for certain financial transactions performed by subsidiaries. As at December 31, 2020 and 2019, guarantees were as follows:

12/31/2020 12/31/2019 Camicado Fundo do Nordeste (FNE) - 685 Foreign currency borrowings – Law 4131 39,455 31,803 Secured account - 51,420 Youcom Foreign currency borrowings – Law 4131 - 26,134 Realize CFI Financial bills 315,203 306,370 Bank Credit Notes 51,270 - Interbank Deposit Certificates 103,850 - Foreign currency financing - 147,256 Guaranteed account - 37,740 Total 509,778 601,408

26.2 CONSOLIDATED CONTEXT

Agreements or other significant obligations between the Company and its management members

According to Chapter IV, art. 13 of its Bylaws, Company management is incumbent upon the Board of Directors and management members are described in for a term of office drafted in a book, signed by the invested management member,

130

not requiring any guarantee of management, and conditioned to the prior signature of the Statement of Compliance of Management Members regarding the Novo Mercado Listing Rules.

The Board of Directors, elected at Shareholders’ Meeting, have unified terms of office of one year, re-election being permitted. The Board members in office are automatically considered appointed for re-election by their joint proposal. The Executive Board, with members who are elected and removable at any time by the Board of Directors, has a two-year term, with reelection permitted. It is related to the company through a service agreement, the remuneration of which comprises a fixed component adjusted annually according to the INPC index and a variable component according to the Company’s financial performance.

Compensation of the members of the Board of Directors and Executive Board (the “Management”)

Pursuant to Corporation Law and the Company's Bylaws, it is the responsibility of shareholders, at an Annual Shareholders' Meeting, to set the total annual compensation amount of the key management personnel, and of the Board of Directors to distribute the allowance among the management members after considering the Committee of Persons’ opinion.

The Annual Shareholders' Meeting held on April 29, 2020, approved the management members’ overall compensation limit up to R$ 38,800 for 2020. This amount consists of funds that include fixed compensation of management members, variable compensation, which considers the participation in meetings and statutory participation (article 34 of the Bylaws and paragraph 1 of article 152 of Law 6404/76), and the cost of the stock option and the restricted share plan 30 and 31). These amounts are summarized as follows:

Parent Company Consolidated 2020 2019 2020 2019 Management compensation (19,959) (17,535) (21,275) (18,503) Management participation (1,363) (5,855) (1,363) (5,855) Stock option plan (11,101) (9,919) (11,101) (9,919) Restricted share plan (2,528) (3,828) (2,528) (3,828) Total (34,951) (37,137) (36,267) (38,105)

Total management compensation is impacted by operating and financial indicators in the Company’s profit or loss.

131

26.3 BALANCES AND TRANSACTIONS WITH RELATED PARTIES

ACCOUNTING POLICY

Intercompany transactions including balances, and unrealized gains and losses deriving from such transactions, are eliminated. The accounting policies of the subsidiaries are consistent with the practices adopted by the parent company. The main balances in the statement of financial position and P&L relating to transactions with related parties arise from transactions under usual market and contractual conditions.

Balances with related companies

Realize Participações Operations - Assets (liabilities) RACC Dromegon Camicado Youcom LRS S.A. LRU LRA Realize CFI Total Accounts receivable Export of goods for resale ------22,748 15,736 - 38,484 Co-branded card (“Meu Cartão”) operations ------359,772 359,772 Renner credit card (New Private Label) ------810,639 810,639 Other assets Renner credit card ------1,836 1,836 Credit with related parties Sharing of expenses/provision of services 170 6 692 570 1,358 4 415 7,466 8,892 19,573 Debits with related parties Sharing of expenses - - - - (235) - - - - (235) Rents payable - (874) (23) - (313) - - - - (1,210) Obligations with credit card administrators Co-branded card (“Meu Cartão”) operations (1,377) ------(14,334) (15,711) Other obligations Renner credit card operations (Private Label) ------(7,980) (7,980) Total at December 31, 2020 (1,207) (868) 669 570 810 4 23,163 23,202 1,158,825 1,205,168

132

Realize Participações Operations - Assets (liabilities) RACC Dromegon Camicado Youcom LRS S.A. LRU LRA Realize CFI Total Accounts receivable Export of goods for resale ------15,015 14,158 - 29,173 Co-branded card (“Meu Cartão”) operations ------334,785 334,785 Renner credit card (New Private Label) ------943,091 943,091 Other assets Renner credit card ------1,454 1,454 Credit with related parties Sharing of expenses/provision of services - - 615 1,844 1,098 4 196 - 9,562 13,319 Debits with related parties Sharing of expenses - 12 - - (235) - - - - (223) Rents payable - (1,030) (26) ------(1,056) Obligations with credit card administrators Co-branded card (“Meu Cartão”) operations (988) ------(25,931) (26,919) Other obligations Renner credit card operations (Private Label) ------(3,117) (3,117) Total at December 31, 2019 (988) (1,018) 589 1,844 863 4 15,211 14,158 1,259,844 1,290,507

Transactions with related companies

Type of revenue (expense) RACC Dromegon Camicado Youcom LRS LRU LRA Realize CFI Total Apportionment of corporate expenses - 77 7,302 7,249 (3,460) - 845 39,917 51,930 Intermediation commission - - - - (17,205) - - - (17,205) Property rent expenses - (4,343) ------(4,343) Revenue from rendering of services - - - - - 5,585 - 55,946 61,531 Export of goods and costs - - - - - 47,785 17,768 - 65,553 Total – 2020 - (4,266) 7,302 7,249 (20,665) 53,370 18,613 95,863 157,466 Apportionment of corporate expenses (42) 75 7,618 6,053 (2,562) - - 26,596 37,738 Intermediation commission - - - - (16,308) - - - (16,308) Property rent expenses - (7,014) ------(7,014) Revenue from rendering of services - - - - - 3,889 - 50,268 54,157 Export of goods - - - - - 56,474 14,161 - 70,635 Return of exports - - - - - (3,644) - - (3,644) Total – 2019 (42) (6,939) 7,618 6,053 (18,870) 56,719 14,161 76,864 135,564

133

27 SHAREHOLDERS’ EQUITY

27.1 CAPITAL

The Company’s authorized capital limit is 1,361,250,000 (one billion, three hundred and sixty-one million and two hundred fifty thousand) common shares, all without par value. Within the limits authorized in the Bylaws, the Company will be able to increase the capital independently of statutory reform. The Board will determine the conditions for the share issuance, including price and timeframe for payment.

According to article 40 of the Company’s By-laws, any person or group of shareholders that acquires or becomes the holder of shares issued by the Company (Purchasing Shareholder) in a quantity greater than or equal to 20% of the total shares issued, shall, within 60 days after the date of acquisition, hold a Public Offering (PO) for the acquisition of all the shares, complying with provisions of CVM regulations, of the regulations of B3 and of the Company’s By-laws. On December 31, 2020, no shareholder individually holds ownership interest greater than or equal to 20%.

Each common share corresponds to the right to one vote in the deliberations of the General Meeting, as well as the right to participate in the allocation of income, in the form of dividends, proposed in compliance with By-laws and in accordance with articles 190 and 202 of Law 6404/76, which establish a minimum compulsory dividend of 25% of the adjusted profit or loss.

Changes in capital are shown below:

Number of shares (in Total thousands) Balance at January 1, 2019 720,024 2,637,473 Capital increase, RCA on May 23, August 21, and November 21 3,532 46,111 Incorporation of capital reserves, SSM (Special Shareholders’ Meeting) as of April 30 - 72,050 Share bonuses (incorporation of profit reserves) 72,002 1,040,000 Balance at December 31, 2019 795,558 3,795,634 Capital increase, RCA on May 21, August 08, and November 19 612 9,692 Balance at December 31, 2020 796,170 3,805,326

27.2 TREASURY SHARES

In a Board of Directors’ Meeting held on March 10, 2020, the Repurchase Program relating to shares issued by the Company was approved by unanimous vote and with no restriction, subject to no capital decrease. Up to 8,000,000 (eight million) common shares may be acquired.

On December 31, 2020, treasury shares balance is R$ 119,461 (R$ 35,549 Number of as of December 31, 2019), corresponding to 3,158,685 (three million, one shares (in Average thousands) Amount price hundred and fifty-eight thousand six hundred and eighty-five) common Balance at January 1, 2019 2,085 44,536 21,36 shares at average weighted cost of R$ 37,82 (R$ 19,42 as of December Transfer of shares (421) (8,987) 21,35 31, 2019). The transfers performed refer to compliance with the Share bonuses 167 - - Company’s restricted share plan. Changes are as follows: Balance at December 31, 2019 1,831 35,549 19,42 Transfer of shares (672) (13,052) 19,42 Repurchase of shares 2,000 96,964 48,48 27.3 CAPITAL RESERVES Balance at December 31, 2020 3,159 119,461 37,82

Stock option plan reserve and restricted share plan These reserves are matched against expenses with the stock option plan and restricted shares (Notes 30 and 31), the allocation of which depends on resolution at the Special Shareholders’ Meeting. As at December 31, 2020, this balance is R$ 94,031 (R$ 74,227 as of December 31, 2019).

27.4 PROFIT RESERVES

Legal reserve

In compliance with art. 193 of Law 6404/76 and art. 34, item (a) of the Company’s Bylaws, the legal reserve is set up at amount equivalent to 5% of net income for each year. As at December 31, 2020, this balance is R$ 109,768 (R$ 54,955 as of December 31, 2019).

Reserve for investment and expansion

134

This reserve is recorded as decided by the management bodies to cover the Company’s expansion plan investments, as provided for in article 34, item (c) of the By-laws. Considering the impacts of Covid-19, the additional dividends proposed in RCA on January 16, 2020 amounting to R$ 282,221 were reversed to the reserve for investment and expansion as approved in the Special Shareholders’ Meeting of April 29, 2020. As at December 31, 2020, this balance is of R$ 1,421,744 (R$ 434,856 at December 31, 2019 - restated, pursuant to the change in accounting policy – Note 3.6.1.1).

Tax incentive reserve

The Company uses ICMS tax incentives in the form of “deemed credit,” with its impacts on profit or loss. The management, in view of the publication of Supplementary Law 160/17 and in compliance with Law 6404/76, allocated these amounts as tax incentive reserve. As at December 31, 2020, this balance is R$ 162,812 (R$ 97,539 at December 31, 2019).

Additional dividend proposed

These are dividends proposed in addition to the mandatory minimum dividend, which were based on the distribution of 50% of net income for 2019 decided in RCA of January 16, 2020. However, in RCA of March 30, 2020, this decision was revoked, and the payment of minimum dividends of 25% of adjusted net income of fiscal year of 2019 was proposed, in line with initiatives to prepare the Company for the impacts of Covid-19 (Note 3.9). The difference referring to the amount recorded at December 31, 2019 of R$ 282,221 was reclassified to reserve for investments and expansion. As at December 31, 2020, no proposal for additional dividends was recorded and only the balance of R$ 191 corresponding to prior years’ prescribed dividends remains (R$ 282,546 at December 31, 2019).

27.5 OTHER COMPREHENSIVE INCOME (LOSS)

This refers to cumulative translation adjustments, hyperinflation adjustments and unrealized profit or loss on derivative financial instruments as equity valuation adjustments. This amount represents accumulated gains, net of taxes, of R$ 26,905 as at December 31, 2020 (R$ 13,189 of loss, net of taxes at December 31, 2019 - restated, pursuant to the change in accounting policy - Note 3.6.1).

28 DIVIDENDS AND INTEREST ON EQUITY

28.1 ACCOUNTING POLICY

The By-laws and corporate law establish distribution of dividends of a minimum of 25% of adjusted annual profit. If such limit was not attained by interim remunerations, we record a provision at the end of year in the amount of the mandatory minimum dividend that has not yet been distributed. Dividends exceeding this limit are segregated in a specific equity account named “Additional dividends proposed”. When decided by management, interest on equity is calculated in dividends for the year. The tax benefit of interest on equity is recognized in the statement of profit or loss (Note 12.5).

28.2 DISTRIBUTION OF INTEREST ON EQUITY AND DIVIDENDS – YEAR 2020

The Company’s management proposed the distribution of 25% of the net profit by the year complementing in R$ 30,698, as dividends, an amount already decided in the form of interest on equity during the year. Further details are presented in Note 38.1. The sum of interest on equity, net of withholding income tax, plus dividends complies with the provisions of articles 201 and 202 of Law 6404/76 and article 36 of the Company’s By-Laws.

Adjusted calculation basis

2020 2019 Restated (*) Net income of the year 1,096,269 1,086,201 (-) Legal reserve (54,813) (54,955) (-) Tax incentive reserve (65,273) (97,539) Adjusted net income for the year 976,183 933,707 Dividends proposed 271,516 546,324 (+) IRRF on interest on equity (27,470) (30,676) Dividends adjusted in accordance with GSM of 04/29/2020 (**) - (282,221) Adjusted dividends – change in accounting policy - 3,224 Total distributed to shareholders, net of income tax 244,046 236,651

Breakdown of distribution

2020 2019 Restated (*)

135

Distributed as Interest on equity 240,818 251,957 (-) IRRF on interest on equity (27,470) (30,676) Supplementation of mandatory minimum dividend 30,698 15,370 Total mandatory minimum dividend 244,046 236,651 (+) IRRF on interest on equity 27,470 30,676 Total distributed to shareholders 271,516 267,327

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

Statement of the distribution proposal

(*) Outstanding Period Nature Payment shares (thou) R$/share 12/31/2020 R$/share 12/31/2019 1Q20 IOE - RCA 03/16/2020 April/2021 792,399 0.073638 58,351 0.092945 66,768 2Q20 IOE - RCA 06/18/2020 April/2021 792,431 0.070596 55,942 0.077650 61,497 3Q20 IOE - RCA 09/17/2020 April/2021 792,489 0.083344 66,049 0.078588 62,354 4Q20 IOE - RCA 12/15/2020 April/2021 793,011 0.076261 60,476 0.077278 61,338 4Q20 Dividends - RCA 01/21/2021 (**) April/2021 793,011 0.038711 30,698 0.019364 15,370 4Q20 Dividends prescribed - RCA 01/21/2021 April/2021 793,011 0.000241 191 0.000412 327 Total 0.342791 271,707 0.346237 267,654

(*) The number of outstanding shares does not consider treasury shares.

(**) In 2019, dividends proposed in addition to the mandatory minimum dividend, which were based on the distribution of 50% of net income for 2019 decided in RCA of January 16, 2020. However, in RCA of March 30, 2020, this decision was revoked, and the payment of minimum dividends of 25% of adjusted net income re 2019 was proposed, in line with initiatives to prepare the Company for the impacts of Covid-19. The difference referring to the amount recorded at December 31, 2019 of R$ 282,221 was reclassified to reserve for investments and expansion.

Interest on equity was deducted when calculating income and social contribution taxes. Tax benefits of this deduction for 2020 were approximately R$ R$ 81,878 (R$ 85,665 at December 31, 2019).

29 EARNINGS PER SHARE

Basic earnings per share were calculated by dividing profit attributable to shareholders by the weighted average number of common shares issued in the period. Diluted earnings per share are calculated by adjusting the weighted average number of common shares outstanding, presuming the conversion of all the potentially dilutive common shares for the share options that may be exercised. The number of shares calculated as described is compared with the number of issued shares, assuming that the stock option is exercised. Basic and diluted earnings per share are as follows:

Parent Company and Consolidated Basic/Diluted numerator 2020 2019 Restated (*) Net income for the year (*) 1,096,269 1,086,201 Weighted average of common shares, net of treasury shares 792,779 768,063 Potential increase in common shares because of the option plan 1,919 3,447 Basic earnings per share - R$ (*) 1.3828 1.4142

Diluted earnings per share - R$ (*) 1.3795 1.4079 (*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

30 STOCK OPTION PLAN

30.1 ACCOUNTING POLICY

The Company approved a stock option plan for selected management members and executives, offering them the possibility of acquiring the Company’s shares in the form and at conditions described in the plan. Fair value of granted stock option plans is calculated at the date of respective grant using the Black&Scholes model. Expense is recorded on a pro rata basis, which starts on grant date and ends on the date in which the beneficiary acquires the right to exercise the option. The Company maintains two stock option plans, totaling six programs and two ongoing contract grants. Detailed information on the 2nd Stock Option Plan is as follows:

136

30.2 2ND STOCK OPTION PLAN - CHARACTERISTICS

On September 23, 2015, at the Special Shareholders’ Meeting a new stock option plan was approved. Each program will have four tranches, with 25% being exercisable after one year and successively. On February 09, 2017 and February 9, 2019, new contractual options grants were approved to the Chief Executive Officer, which provide for the same conditions as the 2nd Stock option plan.

The plan is supervised by the Committee of Persons (“Committee”), created according to the Company’s Bylaws, which is composed of independent members of the Board of Directors (“Board”). Committee members may not be benefited in stock options. Once an option becomes exercisable, the beneficiary (selected management members and executives) may exercise it at any time, at its own discretion, up to the end of the 6-year period counted as from such option grant date. The plan also provides for the right to exercise the option in case of death, retirement or permanent disability of the member.

In case of obligation of carrying out a public offering, under the terms of Art. 39, 40, 41 and 42 of the Bylaws, or in the event of success of the tender offer of the Company, if a Plan participant is terminated (within 12 months concerning the plan approved in 2015) without cause of by initiative of the Company, all options granted to the respective participant and that are not yet vested shall automatically become vested.

137

30.3 POSITION OF STOCK OPTION PLAN

(*) Limit of 6 years to exercise the options as from grant date.

(**) The options will be available for exercise after compliance with the vesting periods per tranche. The first tranche will be vested one year after grant date, the 2nd tranche two years after that and so forth.

The closing share price of the Company as of December 31, 2020 is R$ 43.54 (R$ 56.19 as of December 31, 2019).

Each option corresponds to the right to subscribe one share of the Company. On December 31, 2020, there were 4,635 thousand options in the Money (5,328 thousand options in the Money at December 31, 2019). We show below the effects in the net equity per share and the respective percentage of reduction in the ownership interests of the current shareholders:

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

138

30.4 ASSUMPTIONS FOR FAIR VALUE MEASUREMENT OF STOCK OPTION PLAN

Fair value of granted stock option plans is calculated at the date of grant using Black&Scholes model. For determining such value, the Company adopted assumptions such as: a) Exercise value of option: weighted average rate over the last 30 share trading sessions of Lojas Renner S.A before the grant date. b) Share price volatility: weighting of the trading history of the Company’s share. c) Risk-free interest rate: using Interbank Deposit Certificate (CDI) available on the grant date and projected for the maximum grace period of the option. d) Estimated dividend: payment of dividends per share in relation to the market value of shares on the grant date. e) Vesting period: maximum period for beneficiaries to exercise their options.

The Management assessed the matters relating to the impacts of Covid-19 and concluded that future variations in share price and CDI had no impact on the methodology for calculating fair value of the options granted, because fair value pricing of these options occurred prior to the pandemic impacts.

30.5 CHANGES

As at December 31, 2020, the expense with stock option plan totaled R$ 22,832 (R$ 21,074 at December 31, 2019) - Parent Company and Consolidated.

31 RESTRICTED SHARE PLAN

31.1 ACCOUNTING POLICY

The Company approved a restricted share plan for selected management members and executives whose expense is recorded at a pro rata basis (on grant date and ends until the date in which the Company transfers the right of shares to the beneficiary) and corresponds to the amount of issued shares multiplied by the share price on the grant date. Provision for social security contributions is updated monthly according to the closing price of the Company.

On September 23, 2015, a Restricted Shares Plan was approved at the Special Shareholders’ Meeting, administered by the Committee – composed of independent members of the Board of Directors – which provides that the members of both bodies will not be eligible for the Restricted Shares contained therein.

31.2 MAIN CHARACTERISTICS

The Board of Directors may grant a number of registered and book-entry common shares of the Company, which are under treasury, not in excess of 1% of the totality of issued shares upon recommendation of the Committee, management members and executives who occupy strategic positions for the businesses.

The definite transfer of Restricted Shares to the participants is conditioned to the fulfillment of a grace period of three years for each grant, and at the end of the grace period, the participant shall have employment agreement with the Company, otherwise, the grants shall be cancelled. All Restricted Shares which grace period has not been completed yet shall be due and shall be transferred to the owners, heirs or successors in case of death, permanent invalidity or retirement.

In case public offer is mandatory pursuant to the terms of Art. 39, 40, 41 and 42 of the Bylaws, or in the hypothesis public offer is successful for acquisition of the Company’s control, if any of these cases result in termination without cause of a Plan member at the Company’s initiative, all restricted shares assigned to the participant and still within grace year will be transferred to the member by recommendation of the Committee and if approved by the Board of Directors.

The contractual grants have the same conditions of exercise and grace period of the other existing grants.

139

31.3 POSITION OF RESTRICTED SHARE PLAN

31.4 CHANGES IN RESTRICTED SHARE PLAN

On December 31, 2020, expenses with restricted share plan, including principal of R$ 10,024 (R$ 10,093 on December 31, 2019) and social charges of R$ 2,994 (R$ 14,696 on December 31, 2019), totaled R$ 13,018 (R$ 24,789 at December 31, 2019).

32 INFORMATION PER BUSINESS SEGMENT

32.1 ACCOUNTING POLICY

The operating segments presented below are consistently organized with the internal report supplied to the Board of Directors, the main decision maker, in charge of allocating funds and evaluating performance of operating segments:

a) Retail: sale of garment items, perfumery, cosmetics, watches, as well as the home & decoration segment; including Renner, Camicado, Youcom, Ashua operations and also in Uruguay and Argentina. b) Financial products: granting of quick withdrawals, financing of purchases, insurance and the practice of asset and liability operations inherent to credit companies, such as Meu Cartão.

Retail Financial Products Consolidated 2020 2019 2020 2019 2020 2019 Restated (*) Restated (*) Restated (*) Net operating revenue 6,660,571 8,474,693 876,609 1,113,744 7,537,180 9,588,437 Cost of sales (3,201,309) (3,707,306) (22,261) (23,215) (3,223,570) (3,730,521) Gross profit 3,459,262 4,767,387 854,348 1,090,529 4,313,610 5,857,916 Sales (2,302,953) (2,360,540) - - (2,302,953) (2,360,540) General and administrative expenses (774,391) (809,794) - - (774,391) (809,794) Losses on receivables, net - - (412,636) (381,049) (412,636) (381,049) Other operating income (expenses) 726,605 (37,040) (359,798) (313,849) 366,807 (350,889) Net income from segments 1,108,523 1,560,013 81,914 395,631 1,190,437 1,955,644

Depreciation and amortization (409,913) (348,098) (14,712) (12,832) (424,627) (360,930) Stock option plan (22,831) (21,075) Income/loss from write-off and estimated losses on fixed assets (20,533) (23,767)

140

Management fees (1,363) (8,294) Finance income (costs), net 479,679 (49,596)

Income and social contribution taxes (104,492) (405,781) Net income for the year 1,096,269 1,086,201 (*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

The result shown above does not deduct the expenses with depreciation and amortization of fixed and intangible assets, with the stock option plan and income/loss resulting from write-off of assets. The exclusion of these expenses in the calculation is in line with the manner in which management evaluates the performance of each business and its contribution to cash generation. Finance income/(costs) are not allocated by segment (except for finance income (costs) due to application of IFRS 16 / CPC 06 (R2), understanding that their composition is more related to corporate decisions on capital structure than to the nature of income/loss of each business segment.

33 REVENUES

33.1 ACCOUNTING POLICY

CPC 47/IFRS 15 – Revenue from Contracts with Customers establishes a model aimed at evidencing whether the accounting criteria were satisfied, in compliance with the following steps:

a) Identification of the contract with the customer; b) Identification of performance obligations; c) Determination of transaction price; d) Allocation of transaction price; and e) Revenue recognition upon satisfaction of performance obligations.

Considering these aspects, revenues are recorded at the amount that reflects the Company’s expectation of receiving in consideration for the products and financial services offered to customers.

Gross revenue is presented less rebates, discounts and eliminations of revenues between related parties and adjustment to present value, as per Note 8.1.

Sale of goods – retail: we operate both in e-commerce and at points of sale, and revenue is recognized in profit or loss when the product is delivered to the customer. Sales are spot sales, in cash and debit cards, or forward sales through third-party cards, Renner card, through financing granted through indirect subsidiary Realize CFI.

Sales of financial products and services: we carry out own credit transactions and offers quick withdrawals and sales financing through indirect subsidiary Realize CFI and agreements with other financial institutions (balances of operations carried out up until April 1, 2019). The operating income is recognized considering effective interest rate, throughout contract validity and for agreed operations, according to the effective provision of services.

33.2 BREAKDOWN

Parent Company Consolidated 2020 2019 2020 2019 Gross operating revenue 8,347,343 10,960,342 10,341,605 12,956,886 Sales of goods 8,308,065 10,702,597 9,408,371 11,774,249 Financial products and services 39,278 257,745 933,234 1,182,637

Deductions (2,493,948) (3,067,176) (2,804,425) (3,368,449) Returns and cancellations (702,282) (655,118) (766,855) (698,969) Taxes on sales (1,783,781) (2,390,725) (1,980,945) (2,600,587) Taxes on financial products and services (7,885) (21,333) (56,625) (68,893)

Net operating revenue 5,853,395 7,893,166 7,537,180 9,588,437

According to our product return policy, the customer receives a bonus voucher at the same price of the returned product for use in a new purchase.

34 EXPENSES PER NATURE

The Company’s statements of profit or loss are shown per function. Expenditures are shown per nature.

141

34.1 SELLING EXPENSES

Parent Company Consolidated 2020 2019 2020 2019 Restated (*) Restated (*) Personnel (684,686) (762,711) (823,460) (890,301) Occupancy (234,214) (226,014) (291,806) (288,845) Discounts - leases payable 104,488 - 128,927 - Outsourced services (115,415) (70,838) (156,543) (86,603) Utilities and services (190,880) (216,603) (217,213) (240,881) Advertising and marketing (303,125) (207,276) (343,884) (241,044) Depreciation and amortization (224,916) (209,346) (278,040) (257,542) Depreciation – Rights-of-use (247,638) (235,095) (304,350) (272,559) Other expenses (144,784) (195,002) (181,649) (228,046) Total (2,041,170) (2,122,885) (2,468,018) (2,505,821)

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

34.2 GENERAL AND ADMINISTRATIVE EXPENSES

Parent Company Consolidated 2020 2019 2020 2019 Restated (*) Restated (*) Personnel (342,407) (361,424) (381,063) (393,039) Occupancy (4,241) (1,129) (10,019) (5,354) Outsourced services (203,676) (206,322) (238,805) (241,778) Utilities and services (44,436) (51,314) (52,652) (56,709) Depreciation and amortization (116,344) (92,739) (131,873) (90,558) Depreciation – Rights-of-use (27,184) (26,081) (30,077) (27,670) Other expenses (25,140) (47,118) (40,744) (64,156) Total (763,428) (786,127) (885,233) (879,264)

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

34.3 OTHER OPERATING INCOME (EXPENSES)

Parent Company Consolidated 2020 2019 2020 2019 Restated (*) Expenses with financial products and services (85,479) (144,406) (357,414) (316,084) Depreciation and amortization (3,839) (8,608) (14,714) (12,830) Depreciation – Rights-of-use - - (587) (594) Income (expenses) from write-off of fixed assets (12,788) (19,689) (20,533) (23,768) Stock option plan (22,831) (21,075) (22,832) (21,075) Management fees (1,363) (5,855) (1,363) (5,855) Other operating income (expenses) (i) (56,309) (17,033) (65,995) (25,831) Recovery of tax credits (ii) 811,870 79,154 815,120 87,384 Employee profit sharing (21,087) (94,217) (22,526) (96,752) Total 608,174 (231,729) 309,156 (415,405)

(i) This refers mostly to provision for fees in connection with the proceeding of ICMS from the PIS/COFINS base.

(ii) This refers mostly to credits relating to the process that excludes ICMS from the PIS/COFINS base recorded in the second quarter of 2020 (Note 10).

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

142

35 NET FINANCIAL INCOME

Parent Company Consolidated 2020 2019 2020 2019

Restated (*) Restated (*) Finance income 618,347 31,344 712,925 74,422 Gains from cash equivalents 34,515 29,046 35,250 31,200 Foreign exchange gains 21,235 1,300 44,035 34,271 Inflation adjustment - - 70,262 6,836 SELIC interest on tax credits (i) 560,384 169 560,384 379 Other finance income 2,213 829 2,994 1,736

Finance expenses (242,451) (188,137) (369,043) (258,817) Interest on borrowings, financing and swap (85,510) (60,255) (87,534) (67,275) Interest on leases (113,604) (117,075) (135,798) (134,799) Foreign exchange losses (32,622) (2,331) (81,422) (26,132) Interest payable (766) (1,224) (1,435) (2,287) Inflation adjustment - - (48,723) (16,725) Other finance costs (9,949) (7,252) (14,131) (11,599) Finance income (costs), net 375,896 (156,793) 343,882 (184,395)

(i) This refers mostly to monetary adjustment relating to the proceeding that requests exclusion of ICMS from the PIS/COFINS base recorded in the second quarter of 2020 (Note 10).

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.1.

36 INSURANCE COVERAGE

The Company and its subsidiaries have 12/31/2020 12/31/2019 insurance policies taken out with top-tier insurance companies in brazil, which were Vehicles 8,392 8,422 determined as per guidance provided by experts and take into consideration the Properties and inventories 5,020,861 4,768,048 nature and value of risk involved. On December 31, 2020, the Company and its Civil liability and D&O 98,000 98,000 subsidiaries had insurance coverage for civil liability and property insurance (basic Total 5,127,253 4,874,470 coverage: against fire, lightning, explosion and other property loss policy coverage) and for inventories, as shown below:

143

37 SUPPLEMENTARY INFORMATION TO THE CASH FLOW

37.1 PARENT COMPANY

Borrowings, financing, debentures and operating Statutory Capital Treasury shares Leases payable financing payables Total Balance at January 1, 2019 2,637,473 (44,536) 33,940 906,725 242,995 3,776,597

Restated (*) Changes affecting cash 46,111 4 (326,864) 33,146 (411,520) (659,123) Capital increase/Disposal and/or Transfer of treasury shares 46,111 4 - - - 46,115 (Amortization) borrowings raised and lease consideration - - (326,864) 73,805 - (253,059) Interest paid on borrowings, debentures and operating financing - - - (40,659) - (40,659) Interest on equity, dividends paid and income tax on interest on equity - - - - (409,081) (409,081) Management fees - - - - (2,439) (2,439) Changes not affecting cash 1,112,050 8,983 1,727,348 60,609 411,639 3,320,629 First-time adoption - CPC 06 (R2)/IFRS 16 and contractual remeasurement (*) - - 1,604,478 - - 1,604,478 Share bonuses and incorporation of capital reserves 1,112,050 - - - 1,112,050 Disposal/transfer of shares - 8,983 - - - 8,983 Interest expenses on borrowings, leases, structuring costs and operating financing (*) - - 122,870 60,609 - 183,479 Distribution of interest on equity and dividends - - - - 411,639 411,639 Balance at December 31, 2019 3,795,634 (35,549) 1,434,424 1,000,480 243,114 6,438,103

Changes affecting cash 9,692 (96,964) (279,017) 1,454,344 (249,670) 838,385 Capital increase 9,692 - - - - 9,692 Repurchase of shares - (96,964) - - - (96,964) (Amortization) borrowings raised and lease consideration - - (279,017) 1,512,288 - 1,233,271 Interest paid on borrowings, debentures and operating financing - - - (57,944) - (57,944) Interest on equity, dividends paid and income tax on interest on equity - - - - (243,835) (243,835) Management fees - - - - (5,835) (5,835) Changes not affecting cash - 13,052 376,240 128,735 252,825 770,852 Remeasurement of new contracts and ended contracts - - 356,437 - - 356,437 Discounts - leases payable - - (104,488) - - (104,488) Disposal/transfer of shares - 13,052 - - - 13,052 Interest expenses on borrowings, leases, structuring costs and operating financing - - 124,291 90,995 - 215,286 Distribution of interest on equity and dividends - - - - 273,397 273,397 Offset of income tax on IOE (20,572) (20,572) Financing - financial service operations - - - 37,740 - 37,740 Balance at December 31, 2020 3,805,326 (119,461) 1,531,647 2,583,559 246,269 8,047,340

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.

144

37.2 CONSOLIDATED

Borrowings, financing, Treasury debentures and operating Statutory Capital shares Leases payable financing payables Total Balance at January 1, 2019 2,637,473 (44,536) 33,940 1,038,062 242,995 3,907,934

Restated (*) Changes affecting cash 46,111 4 (376,500) 48,078 (411,520) (693,827) Capital increase 46,111 4 - - - 46,115 (Amortization) borrowings raised and lease consideration - - (376,500) 91,753 - (284,747) Interest paid on borrowings, debentures and operating financing - - - (43,675) - (43,675) Interest on equity, dividends paid and income tax on interest on equity - - - - (409,081) (409,081) Management fees - - - - (2,439) (2,439) Changes not affecting cash 1,112,050 8,983 2,081,921 67,523 411,639 3,682,116 First-time adoption - CPC 06 (R2)/IFRS 16 and contractual remeasurement (*) - - 1,940,994 - - 1,940,994 Share bonuses and incorporation of capital reserves 1,112,050 - - - - 1,112,050 Disposal/transfer of shares - 8,983 - - - 8,983 Interest expenses on borrowings, leases, structuring costs and operating financing (*) - - 140,927 67,523 - 208,450 Distribution of interest on equity and dividends - - - - 411,639 411,639 Balance at December 31, 2019 3,795,634 (35,549) 1,739,361 1,153,663 243,114 6,896,223

Changes affecting cash 9,692 (96,964) (334,911) 1,619,793 (249,670) 947,940 Capital increase 9,692 - - - - 9,692 Disposal/transfer of shares - (96,964) - - - (96,964) (Amortization) borrowings raised and lease consideration - - (334,911) 1,679,318 - 1,344,407 Interest paid on borrowings, debentures and operating financing - - - (59,525) - (59,525) Interest on equity, dividends paid and income tax on interest on equity - - - - (243,835) (243,835) Management fees - - - - (5,835) (5,835) Changes not affecting cash - 13,052 457,937 611,523 252,825 1,335,337 Remeasurement, new contracts, ended contracts and translation adjustments - - 438,765 - - 438,765 Discounts - leases payable - - (128,927) - - (128,927) Disposal/transfer of shares - 13,052 - - - 13,052 Interest expenses on borrowings, leases, structuring costs and operating financing - - 148,099 120,157 - 268,256 Distribution of interest on equity and dividends - - - - 273,397 273,397 Offset of income tax on IOE - - - - (20,572) (20,572) Financing - financial service operations - - - 491,366 - 491,366 Balance at December 31, 2020 3,805,326 (119,461) 1,862,387 3,384,979 246,269 9,179,500

(*) Restatement of comparative balances due to the change in the accounting policy for leases, as described in Note 3.6.1.

145

38 EVENTS AFTER THE REPORTING PERIOD

38.1 DISTRIBUTION OF DIVIDENDS

The Company's management proposed at a meeting of the Board of Directors held on January 21, 2021, the distribution of 25% of net income generated in fiscal year 2020. The distribution of dividends will be submitted for approval at the Annual General Meeting to be held until April 2021.

38.2 GOING-CONCERN CONSIDERATIONS

These interim financial statements present the measures taken concerning the impacts of Covid-19. These decisions were proven correct, since they preserved the Company’s employees, customers and suppliers. At the end of this year, the Company had gradually resumed its operations. Also, an increased flow of customers can be observed in the stores and the Company’s digital business is thriving. The Company has been continuously monitoring the current scenario and maintains a dynamic adjustment plan, which may be adapted to the changes in the economic scenario and internal opportunities.

Taking these factors into consideration, we believe that these indicators contribute with the Company’s business continuity plan.

146

ATTACHMENT IV

INDEPENDENT AUDITORS’ REPORT

INDEPENDENT AUDITOR’S REPORT ON INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS

The Shareholders, Board of Directors and Officers Lojas Renner S.A. Porto Alegre - RS

OPINION

We have audited the individual and consolidated financial statements of Lojas Renner S.A. (the “Company”), identified as Individual and Consolidated, respectively, which comprise the statement of financial position as at December 31, 2020, and the statements of profit or loss, of comprehensive income, of changes in equity and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the individual and consolidated financial position of Lojas Renner S.A. as at December 31, 2020, and its individual and consolidated financial performance and cash flows for the year then ended in accordance with the accounting practices adopted in Brazil and with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

BASIS FOR OPINION

We conducted our audit in accordance with Brazilian and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the individual and consolidated financial statements section of our report. We are independent of the Company and its subsidiaries in accordance with the relevant ethical principles set forth in the Code of Professional Ethics for Accountants, the professional standards issued by the Brazil’s National Association of State Boards of Accountancy (CFC) and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the individual and consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter, including any commentary on the findings or outcome of our procedures, is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the individual and consolidated financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements.

The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

Exclusion of ICMS from PIS/COFINS base

As evidenced in Note 10, in May 2020, the Company was awarded a final unappealable favorable decision in connection with the petition for writ of mandamus seeking recognition of the right to exclude ICMS from the PIS and COFINS base, for the period from November 2001 to February 2017. Also, in May 2020, these credits were approved by the Brazilian IRS. As such, the Company recorded PIS/ COFINS credits totaling R$1,363,029 thousand, including principal and monetary restatement, which were measured taking into consideration judgments and assumptions adopted by management, the net or gross tax amount informed in the invoices and other information provided by the creditsupporting documentation. Worth noting, these credits’ measurement process involved a significant volume of operations.

We considered this a key audit matter due to the significance of the amounts involved and the existence of management’s critical judgment, supported by the opinion of Company legal and tax advisors, in measuring the impacts from the final unappealable decision, as well as the ability to realize referred to tax credits.

147

Our audit approach

Our audit procedures involved, among others: obtaining an understanding of management’s process for measuring and recognizing these tax credits, together with our tax specialists; analyzing, with the assistance of our tax and legal specialists, the documentation relating to the final unappealable court decision, and the legal opinions issued in connection with this matter; conducting recalculation tests on the credit amounts computed by the Company on a sample basis, including analysis of the documentation supporting the items selected for the documental test, and performing substantive analytical audit procedures; analyzing the estimate on recovery of the tax credits prepared by management; and reviewing the disclosures made by the Company on this matter in the explanatory notes.

Based on the audit procedures performed, which are consistent with management’s assessment, we believe that the criteria and assumptions used for measuring and recognizing referred to tax credits, as well as respective disclosure in Note 10, are acceptable in the context of the individual and consolidated financial statements taken as a whole.

Estimated credit losses

As informed in Note 8, the Company sells products to consumers who are mostly individuals and offers these consumers credit through issue of credits cards by indirect subsidiary Realize Crédito Financiamento e Investimento S.A. These credits are subject to expected loss analyses as defined by NBC TG 48 (IFRS 9) – Financial Instruments and may be decreased by means of recognition of provision for estimated credit losses.

We considered provision for estimated credit losses a key audit matter, since it refers to an estimate that requires significant judgment by management and involves various factors to be considered for determining its value, such as default levels, renegotiation policies and the portfolio’s quality history. Additionally, we considered the significance of the amounts involved, the dispersion of the operations (low average ticket) and the high volume of transactions, as well as potential impacts of COVID-19 on default levels.

Our audit approach

Our audit procedures involved, among others: testing reconciliation of book balances to the analytical position; analyzing reasonableness of the policy adopted by the Company and its compliance with the accounting practices adopted in Brazil and with IFRS; recalculating the provision based on the established policy, which includes consideration of risk levels and delay in operations, and analysis of customers on a sample basis for assessing individual risk levels; quarterly monitoring the provision and holding periodic discussions with management; and analyzing fairness of respective disclosures in explanatory notes.

Based on the findings of the audit procedures performed on provision for estimated credit losses, which are consistent with management’s assessment, we believe that the policies and assumptions adopted by management for measuring and recording this provision, as well as respective disclosures in Note 8, are acceptable in the context of the financial statements taken as a whole.

Measurement of lease liabilities and right-of-use assets, in accordance with NBC TG 06 (R3) (IFRS 16)

As described in Notes 15 and 19, the Company recorded right-of-use assets and lease liabilities for agreements within the scope of NBC TG 06 (R3) (IFRS 16). As at December 31, 2020, the Company recorded right-of-use assets amounting to R$ 1,397,843 thousand – Individual and R$ 1,700,038 thousand - Consolidated, and lease liabilities amounting to R$ 1,531,647 thousand – Individual and R$1,862,387 thousand - Consolidated.

This was considered a key audit matter due to the significance of the amounts involved, both concerning asset and liability balances and net income(loss) for the year, and to the uncertainties inherent in this type of calculation and level of judgment that must be exercised by management in determining the significant assumptions, which include the discount rate used, among others.

Our audit approach

Our audit procedures involved, among others: assessing the main assumptions used for lease terms, discount rate and consideration amounts, as well the calculation method used by the Company for measuring accounting impacts; analyzing the inventory of the Company’s lease agreements, and checking whether such agreements are in compliance with referred to standard. We also tested reasonableness of the criteria adopted by the Company for a sample of agreements randomly selected, taking into consideration the information in such agreements and respective amendments, and recalculated the amounts measured by the Company for these transactions. As a result of these procedures, we identified an audit adjustment in the first quarter. This adjustment was subsequently recorded by management even though it was considered immaterial on the financial statements taken as whole, for the reasons presented in Note 3.6.1.1. Finally, we checked fairness of the Company’s disclosures on the matter in the explanatory notes, including the requirements set out in NBC TG 06 (R3) (IFRS 16) and the guidance provided by the Brazilian SEC (CVM).

148

Based on the audit procedures performed, which are consistent with management’s assessment, we believe that the accounting records prepared by management for measuring the impacts of NBC TG 06 (R3) (IFRS 16) on lease agreements, as well as respective disclosure in Notes 15 and 19, are acceptable in the context of the individual and consolidated financial statements taken as a whole.

OTHER MATTERS

Statements of value added

The individual and consolidated statements of value added (SVA) for year ended December 31, 2020, prepared under the responsibility of Company management, and presented as supplementary information for purposes of IFRS, were submitted to audit procedures conducted together with the audit of the Company’s financial statements. To form our opinion, we evaluated if these statements are reconciled to the financial statements and accounting records, as applicable, and if their form and content comply with the criteria defined by NBC TG 09 – Statement of Value Added. In our opinion, these statements of value added were prepared fairly, in all material respects, in accordance with the criteria defined in above mentioned accounting pronouncement and are consistent in relation to the overall individual and consolidated financial statements.

Corresponding amounts

The corresponding amounts for the year ended December 31, 2019, presented for comparison purposes in the individual and consolidated financial statements for the current year, were restated in relation to the individual and consolidated financial statements originally disclosed for the year ended December 31, 2019, which were audited by another independent auditor. The corresponding amounts for the year ended December 31, 2019, now restated as a result of the matters described in Notes 3.6.1 and 3.6.2, were audited by another independent auditor, who issued unmodified audit report dated February 11, 2021.

OTHER INFORMATION ACCOMPANYING THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS AND THE AUDITOR’S REPORT

Management is responsible for such other information, which comprise the Management Report.

Our opinion on the individual and consolidated financial statements does not cover the Management Report and we do not express any form of assurance conclusion thereon.

In connection with our audit of the individual and consolidated financial statements, our responsibility is to read the Management Report and, in doing so, consider whether this report is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the Management Report, we are required to report that fact. We have nothing to report in this regard.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of the individual and consolidated financial statements in accordance with the accounting practices adopted in Brazil and with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free of material misstatement, whether due to fraud or error.

In preparing the individual and consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s and its subsidiaries’ financial reporting process.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the individual and consolidated financial statements as a whole are free of material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Brazilian and International standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

149

As part of an audit in accordance with Brazilian and International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identified and assessed the risks of material misstatement of the individual and consolidated financial statements, whether due to fraud or error, designed and performed audit procedures responsive to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s and its subsidiaries’ internal control.

• Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Concluded on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the individual and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluated the overall presentation, structure and content of the financial statements, including the disclosures, and whether the individual and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtained sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the individual and consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the scope and timing of the planned audit procedures and significant audit findings, including deficiencies in internal control that we may have identified during our audit.

We also provided those charged with governance with a statement that we have complied with relevant ethical requirements, including applicable independence requirements, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determined those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Porto Alegre, February 11, 2021.

ERNST & YOUNG Auditores Independentes S.S. CRC-2SP15199/O-6

Guilherme Ghidini Neto Accountant CRC-RS 067795/O-5

150

ATTACHMENT V

REPORT AND OPINION OF THE AUDIT RISK MANAGEMENT COMMITTEE AND FISCAL COUNCIL

REPORT OF THE AUDIT AND RISK MANAGEMENT COMMITTEE

1 INTRODUCTION AND GENERAL INFORMATION

In April 2012, the Company’s Board of Directors established the Audit and Risk Management Committee of Lojas Renner S.A., the Committee subsequently being made statutory following approval by the Extraordinary General Meeting of March 2018.

The Committee is an advisory body reporting directly to the Board of Directors, of a statutory nature, with operating autonomy. It has a consultative character and its functioning is disciplined by the provisions of its Internal Charter and the Company’s bylaws. The Committee exercises its consultative functions on behalf of the Board of Directors with respect to fulfilling its supervisory responsibilities for monitoring the integrity of the Financial Statements and internal control systems. It also revises and evaluates the independence and performance of the outside auditors as well as the Company’s internal auditors. The Committee is also responsible for revising areas of the Company where risks are significant as well as monitoring compliance with legal and regulatory requirements.

Currently, the Committee is made up of 3 (three) independent members of the Board of Directors, elected by their peers, all of whom have recognized experience in matters relating to corporate accounting, pursuant to the Brazilian Securities and Exchange Commission – CVM instruction, and 1 (one) external member nominated by the Board, also with recognized experience in corporate accounting matters, as called for by the Committee’s Internal Charter.

2 SUMMARY OF ACTIVITIES IN 2020

During fiscal year 2020, the Audit and Risk Management Committee held seven (7) ordinary and seven (7) extraordinary meetings, where several issues were analyzed and recommendations were made to the Board of Directors. One of these meetings had representatives from the Fiscal Council and the Board of Directors in attendance. Furthermore, Internal Audit attended in five (5) cases and Independent Audit attended two (2) meetings. In the same period, the Audit and Risk Management Committee added items to eight (8) meetings of the Board of Directors, where the Committee’s work was presented, together with recommendations for approval. The principal matters discussed during the year are as follows:

2.1 FINANCIAL STATEMENTS • Revision of the quarterly and annual financial statements, and recommendations to the Board of Directors to the deliberation; • Revision of the semiannual and annual financial statements, and recommendations to the Board of Directors to the deliberation; • Monitoring of provisions for accounting estimates and risks; • Review of guarantee proposals and approval for decision by the Board of Directors; • Monitoring of defaults at Realize, funding and Renner cash flow.

2.2 MANAGEMENT OF RISKS AND INTERNAL CONTROLS • Review of the update of large-scale, large-repercussion risks, and actions already implemented, as well as indicators and comparisons; • Examination of the Business Continuity Management Plan (GNC).

2.3 COMPLIANCE AND ETHICS • Review of periodical report on inspections of Realize CFI conducted by the Central Bank of Brazil, recommending priority in their solution;

2.4 INTERNAL AUDIT • Revision and approval of the Company’s principal risks presented by the Internal Audit, including Subsidiary Companies: Camicado, Youcom, Realize CFI and RACC, and subsequently presented to the Board of Directors; • Examination and approval of the plan for projects to be executed in 2020; • Tracking Audit points pending implementation in fiscal year 2019; • Examination of the analysis related to 2 (two) complaints relating to accounting aspects, internal controls and auditing procedures, recommending implementation of actions as soon as possible as well as a fresh report on the matter; • Analysis and approval of the proposed alteration to the new audit policy, including methodology and management of action plans (terms, advances, responsibilities); • Examination of the principal impacts on the Auditing projects, in view of Covid19, as well as the effect on the schedule recommending special attention to the compulsory and relevant risks projects; • Examination and approval of the proposed changes to the Internal Audit project schedule;

2.5 INDEPENDENT AUDIT • Appreciation of the work carried out in 2019 by KPMG Auditoria Independente; • Analysis and approval of the proposed negotiations with the auditors, Ernst Young; • Examination of the plan and the work already in hand, undertaken by Ernst Young for fiscal year 2020.

151

2.6 ONE-OFF DISCUSSIONS • Review of tax-related matters submitted, approval of management recommendation on tax treatment and request for updates on these matters; • Examination of IFRS Norm 16/CPC 06 (R2) – and approval of the recommendation proposed by management; • Examination of the record of understanding and approach to IFRS Norm 16 - CPC 06 and Official Letter 72/2020/CVM/SEP/GEA; • Analysis and approval of the Annual Report of activities of the Audit and Risks Management Committee for the Year 2019; • Examination of the perspectives of the impacts of the Coronavirus epidemic and request for an update on the matter; • Examination of the record of the OEA certification process (Authorized Economic Operator), and approval of recommendation by management; • Examination of the report on the difficulties, risks and safety measures linked to the process for reopening of the stores and request for periodic updating; • Examination of labor complaints related to the POCA, and request for the periodic report on the matter; • Examination of the work, evaluations and monitoring effected by the Realize Risks Committee, requesting a periodic report on the performance of the indicators and work undertaken; • Examination of the plan for raising debt 2020/21, and approval of the plan proposed by Management; • Examination of progress of the project for raising the line of credit from the BNDES, and approving the continuity of the operation; • Evaluation of performance of the default indicators and request for a periodic report; • Analysis of matters related to Corporate Finance; • Realization of an integration agenda between CAGR and Fiscal Council; • Examination of the status updating of the Company’s units as well as their AVCBs (Fire Department Service Charges).

3 OPINION OF THE AUDIT AND RISKS MANAGEMENT COMMITTEE

Pursuant to the legal provisions, the Audit and Risks Management Committee of Lojas Renner S.A. has reviewed the Management Report and Financial Statements for the fiscal year ending December 31, 2020. On the basis of the aforementioned review and further considering the information and clarifications provided by the Company’s Management and by Ernest Young, received during the course of the fiscal year, the Audit and Risks Management Committee recommends that the Board of Directors approve the Management Report and Financial Statements (including explanatory notes) for the fiscal year ending December 31, 2020.

* * *

152

OPINION OF THE AUDIT AND RISKS MANAGEMENT COMMITTEE

Pursuant to the legal provisions, the Audit and Risks Management Committee of Lojas Renner S.A. has reviewed the Management Report and Financial Statements for the fiscal year ending December 31, 2020. On the basis of the aforementioned review and further considering the information and clarifications provided by the Company’s Management and by Ernest Young Auditores Independentes, received during the course of the fiscal year, the Audit and Risks Management Committee recommends that the Board of Directors approve the Management Report and Financial Statements (including explanatory notes) for the fiscal year ending December 31, 2020.

Porto Alegre, February 10, 2021.

Members:

Fábio de Barros Pinheiro Osvaldo Burgos Schirmer Chairman of the Committee

José Carlos Hruby Carlos Fernando Couto de Oliveira Souto

153

OPINION OF THE FISCAL COUNCIL

Subject to compliance with the legal and statutory provisions, in accordance with Article 163 of Law 6404/76 and its subsequent amendments, the Fiscal Council of Lojas Renner has examined the Management Report, the Financial Statements and the Earnings Dividends Distribution Proposal for the fiscal year ending December 31, 2020. Based on the examination carried out and further considering the report without qualification of the independent auditors – Ernest & Young Auditores Independentes dated February 11, 2021, as well as the information and clarifications received during the course of the fiscal year, the Council is of the unanimous opinion that the said documents are suitable for submission to the Annual General Meeting of Shareholders.

Porto Alegre, February 11, 2021.

Joarez José Piccinini Estela Maris Vieira De Souza Roberto Frota Decourt

154

ATTACHMENT VI

CAPITAL BUDGET PROPOSAL AND OFFICERS’ REPRESENTATIONS

MANAGEMENT PROPOSAL FOR CAPITAL EXPENDITURES BUDGET

The following table presents the Company’s capital expenditures budget for year 2021, pursuant to Normative Instruction 480/09, published by the CVM – Brazilian Securities and Exchange Commission on December 7 2009.

Given that the budget consists of forecasts and business prospects, such involve risks, uncertainties and assumptions, the application of resources depends on circumstances that may or may not occur.

General economic conditions, prevailing industrial conditions and other operational factors may affect the amounts forecasted for allocation in fixed assets and working capital.

In order to support the investments, forecast in the Company’s expansion plan, Management is proposing the retention of 64.3% of the net income for year 2020 in amount of R$ 704.7 million, on December 31 2020 totaling R$ 1,421.8 million in the account of Reserve for Investments and Expansion.

Financing Sources R$ Million Remaining balance profit reserves for investment and expansion - after AGM de 04/29/2020 717.1 Constitution for profit reserve for investment and expansion – 2020 704.7 Retained profits in reserve for investment and expansion 12/31/2020 1,421.8 Capital Expenditure Budget – Investment of Resources Forecast 2021 Investments in Fixed Assets (914.1) New Stores (201.2) Remodeling and Upgrading (90.5) IT Systems and Equipment (325.3) Logistics (296.3) Others (0.8) Investments in Subsidiaries (185.9) Total Investments in Fixed Capital (1,100.0) Investments in Working Capital (154.9) Total Investment of Resources - Forecast 2021 (1,254.9)

Porto Alegre, February 11, 2021.

BOARD OF DIRECTORS

José Galló Osvaldo Burgos Schirmer

Chairman Vice Chairman

Carlos Fernando Couto de Oliveira Souto Fábio de Barros Pinheiro Alexandre Vartuli Gouvea

Board Member Board Member Board Member

Christiane Almeida Edington Thomas Bier Herrmann Juliana Rozenbaum Munemori

Board Member Board Member Board Member

EXECUTIVE OFFICERS

Fabio Adegas Faccio Alvaro Jorge Fontes de Azevedo Clarice Martins Costa

Chief Executive Officer and Interim Chief Financial Officer and Chief Human Resources Officer Chief Information Officer Investor Relations Officer

Fabiana Silva Taccola Henry Costa

Chief Operating Officer Chief Product Officer

155

STATEMENT FROM THE BOARD OF EXECUTIVE OFFICERS ON THE FINANCIAL STATEMENTS

Pursuant to subsection VI, Article 25 of CVM Instruction 480 of December 7, 2009, the Board of Executive Officers states that it has reviewed, discussed and agreed the Company’s Financial Statements for the fiscal year 2020, authorizing their conclusion as of this date.

Porto Alegre, February 11, 2021.

BOARD OF EXECUTIVE OFFICERS

Fabio Adegas Faccio Alvaro Jorge Fontes de Azevedo Clarice Martins Costa

Chief Executive Officer and Interim Chief Financial Officer and Chief Human Resources Officer Chief Information Officer Investor Relations Officer

Fabiana Silva Taccola Henry Costa

Chief Operating Officer Chief Product Officer

156

STATEMENT OF THE BOARD OF EXECUTIVE OFFICERS ON THE REPORT OF THE INDEPENDENT AUDITORS

In conformity with sub-item V, article 25 of CVM Instruction 480 of December 7, 2009, the Board of Executive Officers declares that it has reviewed and discussed the content and opinion expressed in the report of the Independent Auditors on the Company’s Financial Statements for year 2020, issued on this date. The Board of Executive Officers declares that it agrees with the content and opinion expressed in the said report of the Independent Auditors on the Company’s Financial Statements.

Porto Alegre, February 11, 2021.

BOARD OF EXECUTIVE OFFICERS

Fabio Adegas Faccio Alvaro Jorge Fontes de Azevedo Clarice Martins Costa

Chief Executive Officer and Interim Chief Financial Officer and Chief Human Resources Officer Chief Information Officer Investor Relations Officer

Fabiana Silva Taccola Henry Costa

Chief Operating Officer Chief Product Officer

157

ATTACHMENT VII PROPOSAL FOR APPLICATION OF NET PROFIT ANNEX 9-1-II OF CVM RULE 481/09

1. Net profit for the fiscal year. The Corporation’s net profit, which correspond to the result for the year after deductions of provisions for income and social contribution taxes and statutory participations, in the year of 2020, amounted to R$ 1,096.3 million, a growth by 0.9% as compared to the amount of R$ 1,086.2 million in 2019.

2. Global amount and value per share of dividends, including interim dividends and interest on own capital already declared. The compensation payable to Shareholders, proposed by the Corporation’s management, to be submitted to approval on the Shareholders’ Meeting, will amount to R$ 271.7 million (R$ 0.342525 per share). This amount includes R$ 191.1 thousand related to prescribed dividends.

3. Percentage of distribution of net profit for the fiscal year. The Board of Directors, in a meeting held on January 21, 2021, elected to propose to shareholders, in the next Annual General Meeting to be held on April 29, 2021, the distribution of twenty-five percent (25%) of net profit for the fiscal year of 2020, as dividends and interest on capital. The proposal was adopted in the light of the Company’s sustained growth policy and its investments plan.

4. Global amount and value per share of dividends distributed based on net profit for prior fiscal years. In 2020, the Corporation did not distribute any dividends based on prior-year profits.

5. Information, net of interim dividends and interest on capital already declared: a. Gross amount of dividend and interest on capital, individually, based on the number of shares of each type and class. On March 16, June 18, September 17 and December 15, 2020, the Board of Directors approved the payment, as interest on capital, of the amount of R$ 240.8 million (R$ 0.303584 per share). In addition, the Board of Directors proposes, for approval by the Shareholders, in General Meeting, the amount of R$ 30,889,473.22 (R$ 0.038940 per share), as dividends. For the calculation of dividend per share purposes, treasury shares (2.9 million) were excluded. In February 08, 2020, 238,260 shares were transferred in the light of the Company’s Restricted Shares Program. Therefore, the number of shares considered for the calculation of the dividends per share changed from 793,011,525 as of December 31st, 2020 to 793,249,785. b. Payment method and term for dividends and interest on capital. Both the interest on capital and dividends will be paid in cash and will have a payment term equivalent to up to ten (10) days after approval by the Annual General Meeting of 2021, which are to be held on April 29, 2021. c. Potential levy of monetary restatement and interest on dividends and interest on capital. There is no levy of monetary restatement and interest on dividends and interest on capital. d. Date of declaration of payment of dividends and interest on capital taken into account for identification of shareholders entitled to receive dividends and interest on capital. Holders of the shares on the date of the AGM 2021 shall have the right to receive the dividends to be decided at the said meeting. As for interest on equity, shareholders who held shares on the dates of their respective approval by the Board of Directors shall be entitled to payment.

6. In the event of declaration of dividends or interest on capital based upon profits recorded in biannual balance sheets or balance sheets for shorter periods: a. Inform the amount of dividends or interest on capital already declared; b. Inform the respective payment dates. The payment of interest on capital have been approved on March 16, June 18, September 17 and December 15, 2020, in the total amount of R$ 240.8 million (R$ 0.303584 per share). And the Annual General Meeting, which will approve dividends in the total amount of R$ 30,889,473.22 (R$ 0.038940 per share), is to be held on April 29, 2021. Both the interest on capital and dividends will be paid in cash and will have a payment term equivalent to up to ten (10) days after approval by the Annual General Meeting of 2021.

158

7. Comparative table indicating the following amounts per share of each type and class: a. Net profit for the fiscal year and for the three (3) prior years; b. Dividend and interest on capital distributed within the three (3) preceding years. 2018 2019* 2020 Net Profit R$ 1.4168 R$ 1.3870 R$ 1.3820 Interest on Capital R$ 0.315536 R$ 0.326461 R$ 0.303584 Dividends R$ 0.24186 R$ 0.019809 R$ 0.038940 Total Interest on Capital + Dividends R$ 0.569722 R$ 0.346270 R$ 0.342525 *Bonus in shares at a ratio of 10%, in 2019.

8. Information of the allocation of profits to the legal reserve: a) Identify the amount allocated to legal reserve and, b) Describe in details the method for calculation of the legal reserve. Were allocated 5% of net profit to the Legal Reserve in the amount of R$ 54.8 million.

9. Should the Corporation holds preferred shares with right to receive fixed or minimum dividends: a. Describe the method for calculation of fixed or minimum dividends; b. Inform whether the net profit for the year is sufficient to fully pay fixed or minimum dividends; c. Identify if any potential unpaid portion is cumulative; d. Identify the global amount of fixed or minimum dividends to be paid with respect to each class of preferred shares; e. Identify fixed or minimum dividends to be paid with respect to each class of preferred shares. The Corporation does not issue any preferred shares as it participates in the Novo Mercado segment of B3 – Brasil, Bolsa, Balcão, where the regulation requires the issuance of common shares only by corporations.

10. With respect to the compulsory dividend: a. Calculation method set forth in the bylaws. The Corporation’s Bylaws, pursuant to item (b) of Section 33, establishes that the portion necessary for the payment of any compulsory dividend should not be lower, in each year, than twenty-five per cent (25%) of the annual adjusted net profit, as set forth in Section 202 of the Corporation Law. b. Is the dividend being paid in full? Yes. The compulsory dividend set forth in the Corporation’s Bylaws is being paid in full. c. Amount potentially withheld. No amount withheld.

11. In the event of withholding of the compulsory dividend due to the Corporation’s financial condition: a. Inform the withholding amount; b. Describe, in details, the Corporation’s financial condition, including any aspects relating to the liquidity analysis, working capital and positive cash flows; c. Explain the withholding of dividends. No compulsory dividend withholding.

12. In the event of allocation of the net profit to the contingency reserve: a. Inform the amount allocated to the reserve; b. Identify any probable loss and the reason therefore; c. Explain why the loss is probable; d. Explain the establishment of the reserve. No allocation of net profit to the contingency reserve.

13. In the event of allocation of the net profit to the unrealized profit reserve: a. Inform the amount allocated to the unrealized profit reserve; b. Inform the nature of unrealized profits which originated the reserve. No allocation of net profit to the unrealized profit reserve.

14. In the event of allocation of the net profit to statutory reserves: a. Describe the statutory clauses which provide for the reserve; Item (c) to Article 33 of the Company’s Corporate Bylaws determines that the remaining portion of the adjusted net income shall be allocated to the Investment and Expansion Reserve, which aims at reinforcing the Company’s capital stock and working capital, with a view to ensuring adequate operational conditions. The balance of this reserve, added to the balances of other profit reserves, except for unrealized profit reserves and contingency reserves may not exceed the amount of capital stock. Once this maximum limit is reached, the General Meeting may resolve on the application of excess in the payment of subscribed capital or capital stock increase, or in the distribution of dividends. b. Inform amount allocated to the reserve; This year, R$ 704.7 million will be proposed to be retained to cover part of the investments programmed in the Company’s expansion plan to be executed in the course of fiscal year 2021.

159

c. Describe how the amount was calculated. Of the total net income of R$ 1,096.3 million in 2020, 5% will be allocated to the legal reserve, 25% to dividends (as proposed by Management), 64.3% to the reserve for investment and expansion, 6.0% to tax incentives reserve.

15. In the event of withholding of profits provided for in the capital budget. a. Withholding amount. b. Capital budget. With the exception of Item 14 above, no further retention of profits based on the capital budget is contemplated.

16. In the event of allocation of the net profit to the tax incentive reserve: a. Inform the amount allocated to the reserve; The amount allocated to tax incentive reserve was R$ 65.3 million, corresponding to 6.0% of the net profit of 2020, according to Article 195-A of Law 6,404/76. b. Explain the nature of allocation. The Company uses ICMS tax incentives in the form of “presumed credit,” with its respective impacts on Income, having earned the amount of R$ 162,812 thousand at the Parent Company in 2019. The Company’s management, in view of the publication of Complementary Law 160/17, is assigning such benefits, such as Tax incentive reserve, which shall be approved in the Annual Shareholders' Meeting, to be held on April 29, 2021. Benefit amounts are not part of dividends calculation basis and may only be incorporated to capital in accordance with Law 6404/76.

160

ATTACHMENT VIII INFORMATION ON THE CANDIDATES INDICATED BY THE CORPORATION’S MANAGEMENT (PURSUANT TO ITEMS 12.5 TO 12.10 OF THE CORPORATION’S REFERENCE FORM)

BOARD OF DIRECTORS

CARLOS FERNANDO COUTO DE 12.5 (a) Name JOSÉ GALLÓ OSVALDO BURGOS SCHIRMER FÁBIO DE BARROS PINHEIRO OLIVEIRA SOUTO

12.5 (b) Date of Birth 09.11.1951 08.22.1950 01.30.1967 04.19.1960

12.5 (c) Profession Business Administration Business Administration Lawyer Engineer

12.5 (d) CPF or Passaport Number 032.767.670-15 108.187.230-68 469.694.890-00 275.497.201-34 Vice-President of the Board of Member of the Board of 12.5 (e) Elective position held Chairman of the Board of Directors Member of the Board of Directors Directors Directors

12.5 (f) Election date 04.15.2021 04.15.2021 04.15.2021 04.15.2021

12.5 (g) Investiture date

12.5 (h) Term of office Until 2022´s AGM Until 2022´s AGM Until 2022´s AGM Until 2022´s AGM

Chairman of the People Member of the People Chairman of the Strategic Committee and Member of the Committee and of the Audit Chairman of the Audit and Risk 12.5 (i) Other positions or duties exercised in the issuer Committee and Member of the Audit and Risk Management and Risk Management Management Committee Sustainability Committee Committee Committee

12.5 (j) Indication of election by the controlling No, the Company does not have a No, the Company does not No, the Company does not No, the Company does not have shareholder or not controlling shareholder have a controlling shareholder have a controlling shareholder a controlling shareholder

Yes. Criterion as per Paragraph Yes. Criterion as per Paragraph Yes. Criterion as per Paragraph 1, 12.5 (k) If an independent member and, if so, what was None 1, Article 16 of the Company’s 1, Article 16 of the Company’s Article 16 of the Company’s the criterion used for determining this independence Corporate Bylaws Corporate Bylaws Corporate Bylaws

12.5 (l) Number of consecutive terms of office 23 terms of office 9 terms of office 6 terms of office 7 terms of office

12.5 (n) Description of any of the following events which have occurred over the last five (5) years: i. any criminal sentence; ii. any sentence in any administrative proceeding by CVM and the penalties applied; iii. any Nothing on record Nothing on record Nothing on record Nothing on record final and unappealable sentence, at legal or administrative level, which has suspended or disqualified the candidate in connection with the performance of any professional or business activity

12.6 Percentage participation in those meetings of the 100% 100% 100% 100% Board of Directors held after taking office

12.7 Is he/she a member of any statutory committee, as Yes, Audit and Risk Management Yes, People Committee and Yes, Strategic Committee and Yes, Audit and Risk Management well as any audit, risk, financial and People Committees Committee and People Audit and Risk Management Sustainability Committee Committee in the Corporation? Committee Committee

12.8 Percentage participation in meetings of the Audit and Risk Management People Committee = 100% Audit Strategic Committee = 100% Audit and Risk Management Committees of which he/she is a member after taking Committee = 100% and Risk Management Sustainability Committee = 100% Committee = 100% office People Committee = 100% Committee = 100%

12.9 Existence of marital relationship, firm relationship or family relationship up to the second degree between: a. the issuer’s officers and directors; b. (i) the issuer’s officers and (ii) the officers and directors of any of the issuer’s subsidiaries, whether direct or indirect; c. (i) the issuer’s None None None None or its subsidiaries’ officers and directors, whether direct or indirect and (ii) the issuer’s direct and indirect controlling shareholders; d. (i) the issuer’s officers and directors and (ii) the officers and directors of any of the issuer’s controlling shareholders, whether direct or indirect:

12.10 Subordination, service rendering or control relationships kept, over the last three (3) fiscal years, between the issuer’s officers and directors and: a. any of the issuer’s direct or indirect subsidiaries; b. any of the None None None None issuer’s direct or indirect controlling shareholders; c. if material, any supplier, customer, debtor or creditor of the issuer, its subsidiary or controlling shareholders or the subsidiaries of any of the foregoing:

161

JULIANA ROZENBAUM 12.5 (a) Name THOMAS BIER HERRMANN CHRISTIANE ALMEIDA EDINGTON ALEXANDRE VARTULI GOUVEA MUNEMORI 12.5 (b) Date of Birth 07.28.1950 07.21.1976 02.05.1965 12.02.1959

12.5 (c) Profession Business Administration Economist Executive Mechanical Engineer

12.5 (d) CPF or Passaport Number 148.854.500-63 081.606.157-28 387.697.355-49 749.218.607-00 Member of the Board of Member of the Board of 12.5 (e) Elective position held Member of the Board of Directors Member of the Board of Directors Directors Directors

12.5 (f) Election date 04.15.2021 04.15.2021 04.15.2021 04.15.2021

12.5 (g) Investiture date

12.5 (h) Term of office Until 2022´s AGM Until 2022´s AGM Until 2022´s AGM Until 2022´s AGM

Chairman of the Sustainability Member of the Strategic Member of the Strategic Member of the Strategic 12.5 (i) Other positions or duties exercised in the issuer Committee and Member of the Committee Committee Committee People Committee

12.5 (j) Indication of election by the controlling No, the Company does not have No, the Company does not No, the Company does not No, the Company does not have shareholder or not a controlling shareholder have a controlling shareholder have a controlling shareholder a controlling shareholder

Yes. Criterion as per Paragraph 1, Yes. Criterion as per Paragraph Yes. Criterion as per Paragraph Yes. Criterion as per Paragraph 1, 12.5 (k) If an independent member and, if so, what was Article 16 of the Company’s 1, Article 16 of the Company’s 1, Article 16 of the Company’s Article 16 of the Company’s the criterion used for determining this independence Corporate Bylaws Corporate Bylaws Corporate Bylaws Corporate Bylaws

12.5 (l) Number of consecutive terms of office 4 term of office 4 term of office 3 term of office 2 term of office

12.6 Percentage participation in those meetings of the 100% 100% 100% 100% Board of Directors held after taking office

12.7 Is he/she a member of any statutory committee, as Yes, Sustainability Committee well as any audit, risk, financial and People Committees Yes, Strategic Committee Yes, Strategic Commitmee Yes, Strategic Commitmee and People Committee in the Corporation?

12.8 Percentage participation in meetings of the Sustainability Committee = 100% Committees of which he/she is a member after taking Strategic Committee = 100% Strategic Committee = 100% Strategic Committee = 100% People Committee = 100% office

162

12.5(m)

JOSÉ GALLÓ i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: Chairman of Lojas Renner’s Board of Directors since April 18,2019. He has served as a member of the Board of Directors of Lojas Renner since April 1998, having held the position of Chairman of that Board between 1999 and 2005 and is currently President of the Strategic Committee and member of the Sustainability Committee. He was Superintendent Director of Lojas Renner SA, from September 1991 to March 1999, when he was elected President Director, a position he held until April 2019. He has worked in retail for more than 30 years, having been a member of the Board of Directors of Instituto para Desenvolvimento Retail (IDV). He is a member of the Board of Directors of Itaú Unibanco Holding S.A. since April 2016 and Ultrapar Participações S.A. since April 2019. He was a member of the Board of Directors of SLC Agrícola S.A. from April 2007 to May 2016 and of Localiza Rent a Car S.A. from October 2010 to June 2020, having been Vice-Chairman of that Board from April 2019 to June 2020. ii. Description of all management positions he holds in other companies or third sector organizations: He was Director of Renner Administradora de Cartão de Crédito Ltda., Dromegon Participações Ltda., Realize Participações SA and Realize Crédito, Financiamento e Investimento SA, all companies linked to Lojas Renner SA. He is currently Ambassador of Endeavor Brasil in Rio Grande do Sul and Vice-President of the Deliberative Council of Instituto Caldeira, an innovation ecosystem in Porto Alegre. He was also a member of the Deliberative Council of Instituto Lojas Renner from June 2008 to April 2019.

OSVALDO BURGOS SCHIRMER i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: Independent Member of the Board of Directors of Lojas Renner since April 2012 and was Chairman of the Board from April 2013 to April 2019. On April 18, 2019, he was elected Vice- Chairman of the Board of Directors. He is Chairman of the People Committee, and a Member of the Company's Audit and Risk Management Committee. He is a member of the Board of Directors of public companies, SLC Agrícola SA, since June 2013, of YDUQS (Ex-Estácio), since April 2016, and chairs the Financial Committee to support the Board of that Institution. He is a Advisory Board member of CMPC Produtora de Celulose e Papel, with headquarters in Chile, but with relevant operation in Brazil by Celulose Riograndense, since June 2016; of SLC Participações, a closed family holding company of the SLC Group, since April 2017; of META Soluções de Informática, since January 2019; of FCC FCC Indústria e Comercio Ltda., chemical company, manufacturer of products for the automotive, pharmaceutical, footwear and civil construction industries, since March 2020; of OLEOPLAN, biodiesel producer, since October 2020 and of CFL Construtora e Incorporadora with operations in the states of Santa Catarina and Rio Grande do Sul, since October 2020. As an executive he worked at the Gerdau Group from 1986 to January2013, when he retired. At this company he was Finance Director, CFO and Vice President and member of the Executive Committee. ii. Description of all management positions he holds in other companies or third sector organizations: Since February 2013 he is a member of the Board of the American Chamber of Commerce. For five years, until 2018, he was the Chairman of the Board of this Chamber.

CARLOS FERNANDO COUTO DE OLIVEIRA SOUTO i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: Independent Member of the Board of Directors of Lojas Renner since April 2015, he was Vice-Chairman of the Board from April 2016 to April 18, 2019, and he is currently member of the People Committee and Audit and Risk Management Committee. He is founder, partner and CEO of the law firm Souto, Correa, Cesar, Lummertz & Amaral Advogados. ii. Description of all management positions he holds in other companies or third sector organizations: Board Member of YPO (LAC Region), Associação Escola Panamericana de Porto Alegre (PAS), Câmara Americana de Comércio in Porto Alegre (AMCHAM), of Instituto de Estudos Empresariais - IEE and Hospital Moinhos de Vento in Porto Alegre (HMV).

FÁBIO DE BARROS PINHEIRO i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater

163

than five percent (5%) of the issuer’s securities of similar class or type: Independent Member of Lojas Renner’s Board of Directors since August 2014 and he is currently President of the Audit and Risk Management Committee. He has been independent member of the Board of Directors of Banco Pan S.A. since 2013, Chairman of Itsseg Seguros Inteligentes S.A. since January 2016 and independent member of the Board of Directors of CPSEC (Companhia Paulista de Securitização). He is an independent member of the Board of Directors and member of the CAUD of BNDES, since April 2020. He is a member of the Board of Directors and member of the CAUD of Atakarejo Distribuidora de Alimentos e Bebidas AS, since January 2020. He was independent member of Galvani Indústria, Comércio e Serviços S.A. and Estre Ambiental Inc. and Chairman of Grupo Dilleto and Eneva S.A. He was also Managing Director of Banco UBS Pactual S.A.. ii. Description of all management positions he holds in other companies or third sector organizations: He was independent member of the Board of Directors of Laticínio São Vicente de Minas S.A. from 2013 to 2018.

THOMAS BIER HERRMANN i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: Independent Member of Lojas Renner’s Board of Directors since April 2017 and he is currently President of the Sustainability Committee and member of People Committee. Has exercised his professional activities for 47 years at Grupo Renner Herrmann S.A. Since 1997, he has held the position of Chief Executive Officer of Renner Herrmann S.A. He was member of the Board of Directors of Lojas Renner from 1991 to 1998. He was a Director of Iochpe-Maxxion S/A from January 2008 to March 2015. ii. Description of all management positions he holds in other companies or third sector organizations: He is a member of the Senior Board of the Rio Grande do Sul Steel Association and, since 2020, he is a leader of the Board of Directors of Hospital Moinhos de Vento, having been president of the latter institution from 1999 to 2005.

JULIANA ROZENBAUM MUNEMORI i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: Independent Member of Lojas Renner’s Board of Directors since April 2017 and she is currently member of the Strategic Committee. Since July 2013 (until April 2021), she has been a member of the Board of Directors of Arezzo&Co and Coordinator of the Strategy Committee. Since June 2016, she has been an effective independent member of the Board of Directors of Duratex S.A as well as sitting on the Audit and Risk Management Committee and the Committee for Evaluation of Transactions with Related Parties. Since April 2018, is independent Member of EDP – Energias do Brasil S.A.’s Board of Directors, of the Corporate Governance and Related Parties Board and the Inclusion and Diversity Committee. Since December 2018 participates in the Strategy Committee of Suzano Papel e Celulose S.A. and, since January 2019 is Member of the Consultive Board of Euroframa Laboratórios S.A. Since December 2019 she is member of the Board of Directors of Cogna Educação S.A. and member of People and Governance Committee and coordinator of the Strategy and Innovation Committee. She has 13 years’ experience in Sell Side Equity Research, her primary focus being on companies in the consumption and retail sector. She worked for different financial institutions between 2000 and May 2013, principally at Itaú BBA. From 2013 to 2017, she worked as a consultant in consumption and retailing for the Investment Banking area of Itaú BBA. Over the years, she has been awarded several times by Institutional Investor for her coverage of the retail and consumer goods sectors. Previously, she worked as a Buy Side economist for institutions such as JGP, Pactual and Icatu. ii. Description of all management positions he holds in other companies or third sector organizations: She is also a member of the Consultative Board of GoCase and Uatt, companies under the Endeavor Entrepreneurship umbrella, an organization of which she is an active mentor. She has funded the ONG Associação Beneficente Parents in Action, in which she is Financial Officer.

CHRISTIANE ALMEIDA EDINGTON i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: Independent Member of the Board of Director of Lojas Renner and Member of the Strategic Committee since April 2018. She has a solid experience in the area of Information Technology as well as in implementation of digital business models and in telecommunications. She is an independent member of the Board of Directors and of the Digital and People Committee of JHSF Participações S.A., independent member of the Board

164

of Directors and of the Technology Committee of Padtec Holding, member of the Board of CIONET – a world network of CIOs, she is a director in the Winning Woman Brazil Program of EY, member of the Board of Dataprev where she also have been CEO, being responsible for acts of digital transformation of processes benefiting 35 million people. For 22 years she was a member of the leadership of the Group Telefônica/Vivo, being responsible for digital transformation of the business. As Chief Information Officer of VIVO, she was elected three times the IT Executive of the year by Informatica Hoje and IT Media. Previous experiences as Advisory Director of ZUP IT INNOVATION, as Director of the OESIA Grupo and member of the Board of Directors of LIQ S.A. ii. Description of all management positions he holds in other companies or third sector organizations: There is no additional information.

ALEXANDRE VARTULI GOUVEA i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: Independent Member of the Board of Directors of Lojas Renner since July 2019 and is currently a member of the Strategic Committee. He was a senior partner at McKinsey & Company. During his 29 years at McKinsey, he served clients in financial services, retail, telecommunications, the chemical and metals industry and mining, on strategic, organizational, operational, merger and international expansion topics. More recently, he developed and led the RTS Practice in South America, which offers a proven approach to transformational change in customers looking for radical, fast and sustainable performance improvements. Since joining McKinsey, he has worked throughout Latin America, the United States, Canada and Turkey. At Credicorp Group in Peru he a member of the Board of Directors, member of Nomination Commmittee, in addition of being Chairman of the Audit Committee. He is also a member of the Board of the Banco de Credito del Peru (BCP). ii. Description of all management positions he holds in other companies or third sector organizations: Since 2013, he is member of the Board of Directors of Habitat for Humanity Internacional.

165

FISCAL COUNCIL

ROBERTO ZELLER VANDERLEI DOMINGUEZ ESTELA MARIS VIEIRA DE ISABEL CRISTINA 12.5 (a) Name JOAREZ JOSÉ PICCININI ROBERTO FROTA DECOURT BRANCHI DA ROSA SOUZA BITTENCOURT SANTIAGO

12.5 (b) Date of Birth 09.03.1960 09.22.1972 05.07.1972 09.09.1963 02.20.1964 10.21.1964

12.5 (c) Profession Business Administration Accountant Business Administration Accountant Accountant Business Administration

12.5 (d) CPF or Passaport Number 293.961.580-20 705.046.790-15 212.672.418-29 422.881.180-91 430.340.800-00 451.956.766-15 Effectiv e member of the Alternate Member of the Effectiv e Member of the Alternate Member of the Effectiv e Member of the Alternate Member of the 12.5 (e) Elective position held Fiscal Council (Chairman) Fiscal Council Fiscal Council Fiscal Council Fiscal Council Fiscal Council 12.5 (f) Election date 04.15.2021 04.15.2021 04.15.2021 04.15.2021 04.15.2021 04.15.2021

12.5 (g) Investiture date 12.5 (h) Term of office Until 2022´s AGM Until 2022´s AGM Until 2022´s AGM Until 2022´s AGM Until 2022´s AGM Until 2022´s AGM 12.5 (i) Other positions or duties None None None None None None exercised in the issuer

No, the Company does No, the Company does No, the Company does No, the Company does No, the Company does No, the Company does 12.5 (j) Indication of election by the not hav e a controlling not hav e a controlling not hav e a controlling not hav e a controlling not hav e a controlling not hav e a controlling controlling shareholder or not shareholder shareholder shareholder shareholder shareholder shareholder

12.5 (k) If an independent member and, if so, what was the criterion used for Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable determining this independence

12.5 (l) Number of consecutive terms of 2 terms of office 1 term of office 11 terms of office 1 term of office 1 term of office 1 term of office office

12.5 (n) Description of any of the following events which have occurred over the last five (5) years: i. any criminal sentence; ii. any sentence in any administrative proceeding by CVM and the penalties applied; iii. any final and Nothing on record Nothing on record Nothing on record Nothing on record Nothing on record Nothing on record unappealable sentence, at legal or administrative level, which has suspended or disqualified the candidate in connection with the performance of any professional or business activity

12.6 Percentage participation in those meetings of the Board of Directors held ------after taking office

12.7 Is he/she a member of any statutory committee, as well as any audit, risk, No No No No No No financial and People Committees in the Corporation?

12.8 Percentage participation in meetings of the Committees of which he/she is a No No No No No No member after taking office

12.9 Existence of marital relationship, firm relationship or family relationship up to the second degree between: a. the issuer’s officers and directors; b. (i) the issuer’s officers and (ii) the officers and directors of any of the issuer’s subsidiaries, whether direct or indirect; c. (i) the issuer’s or its subsidiaries’ officers None None None None None None and directors, whether direct or indirect and (ii) the issuer’s direct and indirect controlling shareholders; d. (i) the issuer’s officers and directors and (ii) the officers and directors of any of the issuer’s controlling shareholders, whether direct or indirect:

12.10 Subordination, service rendering or control relationships kept, over the last three (3) fiscal years, between the issuer’s officers and directors and: a. any of the issuer’s direct or indirect subsidiaries; b. any of the issuer’s direct None None None None None None or indirect controlling shareholders; c. if material, any supplier, customer, debtor or creditor of the issuer, its subsidiary or controlling shareholders or the subsidiaries of any of the foregoing:

166

12.5(m) - EFFECTIVE

JOAREZ JOSÉ PICCININI i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: He is effective member of the Lojas Renner S.A. Fiscal Council since April 18,2019. Since 2009, he has been Financial Services managing director (Banco Randon and Randon Consórcios). He is also Institutional Relations Officer of Randon and Chairman of tha Deliberative Board of RandonPrev. He has more than 20 years of activity in the Brazilian financial market, also with spells at the financial institutions of BankBoston, Sogeral and Maisonnave and with a broad-based experience in the international financial market, residing for 10 years in London, (FleetBoston/ Bank of America and Votorantim). While in London, he was a Councilor of the Brazil-United Kingdom Chamber of Commerce. ii. Description of all management positions he holds in other companies or third sector organizations: Currently, he is Economic, and Finance Director and Councilor on the Caxias do Sul Chamber of Commerce and Industry.

ROBERTO FROTA DECOURT i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: He is an effective member of Lojas Renner‘s Fiscal Concil since August 03, 2020, he was an alternate member of Lojas Renner’s Fiscal Council from April 2010 to July 2020. He has been a Managing Partner at the Instituto Pantex de Pesquisa Ltda. since 2001, working as consultant and coach in the field of financial and risk management. He has been member of the Board of Directors of Connectplug since 2018. He was an effective member of the Fiscal Council of Metalúrgica Gerdau S.A. from 2007 to 2011 and from 2014 to 2016. He doctorate lecturer at Unisinos - Universidade do Vale dos Sinos (RS) since 2005. ii. Description of all management positions he holds in other companies or third sector organizations: There is no additional information.

ESTELA MARIS VIEIRA DE SOUZA – indicated by Previ i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: She is an effective member of Lojas Renner’s Fiscal Council since April 29, 2020. She started her career at PricewaterhouseCoopers (PwC) in August 1987, and from 2000 to 2018 she was audit partner. She elected to take early retirement from PwC in January 2019. She led audit engagements and consulting assignments for Brazilian and multinational companies of various sizes covering diverse business segments. She led teams of advisors to investors in the privatization process of the telecommunications sector in Brazil (privatization of the Telebrás system) in 1998. Over a period of 15 years, she was the lead PwC Brazil partner responsible for delivering professional services to the Technology, Communication, Entertainment and Media sector. She is a member of the Board of Directors of Transportadora Sulbrasileira de Gás. Coordinator of the Track & Field Audit Committee. Member of the Audit Committee of the Agência Gestora de Fundos Garantidores e Garantias S.A. – ABGF. Member of the Audit Committee of Localiza S.A. ii. Description of all management positions he holds in other companies or third sector organizations: She was a full member of the Board of PwC.

12.5 (m) ALTERNATE

ROBERTO ZELLER BRANCHI i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: He is an alternate member of the Lojas Renner’s Fiscal Council since April 29, 2020, he was elected alternate member of Lojas Renner’s Fiscal Council from April 2016 to April 2019. He is a partner at Ardenas Partners, was Controller at CRP Companhia de Participações and CFO at Rexnord Correntes Ltda., As well 167

as having worked as Senior Manager at PricewaterhouseCoopers Auditores Independentes. He is a professor in several MBA's and Specializations, member of committees with the Federal Accounting Council (CFC) and Rio Grande do Sul Regional Accounting Council (CRC / RS). Associated with IBGC - Brazilian Institute of Corporate Governance. ii. Description of all management positions he holds in other companies or third sector organizations: There is no additional information.

VANDERLEI DOMINGUEZ DA ROSA i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: He is an alternate member of Lojas Renner Fiscal Council since October 2020. He has been an effective Member of the Fiscal Council of Odontoprev S.A. since April 20107; of WEG S.A. since April 2014; of Equatorial Energia S.A, Equatorial Pará Distribuidora de Energia S.A. and Equatorial Maranhão Distribuidora De Energia S.A. since April 2015; of da Valid Soluções S.A since April 2106; and of Triunfo Part. e Investimentos S.A. since April 2018. Was formerly a Member of the Fiscal Council of Marcopolo S.A., of Ideiasnet S.A., of Cosan S.A., and more. Is a legal expert or advisor to the court in labor claims, termination of entities and other affairs. Former managing partner of HB Audit – Auditores Independentes, successors to Handel, Bittencourt & Cia. – Auditores Independentes, where he was a partner from February 1994 to June 2016, having been engaged with the firm for 28 years (since 1988) and served as Person in Charge before the Brazilian Securities and Exchange commission (Comissão de Valores Mobiliários – CVM). ii. Description of all management positions he holds in other companies or third sector organizations: There is no additional information.

ISABEL CRISTINA BITTENCOURT SANTIAGO – indicated by Previ i. Main professional experiences over the last five (5) years, informing: corporation’s name; positions and duties inherent to the position; main activity of the corporation where such experiences took place, by emphasizing the entities or organizations comprising (i) the issuer’s economic group, or (ii) any partners with direct or indirect ownership interest equivalent to or greater than five percent (5%) of the issuer’s securities of similar class or type: . She is an alternate member of Lojas Renner’s Fiscal Council since April 2019. She was elected member of the Board of Directors and Chairman of the Audit and Risk Management Committee of IIA Brasil, since 2017. Fiscal Council Member (alternate): Fundação Renova since May 2020 and São Martinho S.A since 2017; Fiscal Council Member: Nova Fronteira Bioenergia S / A (joint venture between São Martinho SA and Petrobrás BioEnergia SA): from 2011 to 2017. Chairman of the Fiscal Council of Aceprev (Closed Entity for Private Pension Plans): from 1999 to 2012 and of the Aperam Acesita Foundation: from 2010 to 2011. Executive Manager of Internal Audit and Risk Management (Regional: Americas); Compliance manager with SOX & Controls Internos e Contabilidade and member of the Compliance Committee at Aperam S.A since 1992. Financial and Investor Relations Director: Metaltrust S.A.: from 2009 to 2012. ii. Description of all management positions he holds in other companies or third sector organizations: There is no additional information.

168

ATTACHMENT IX ADDITIONAL INFORMATION ON THE COMPENSATION OF MANAGEMENT (Pursuant to item 13 of the Reference Form of Rule 480/09)

13.1. Compensation policy or practice, inclusive for the Non-statutory Board of Executive Officers a. Purpose of the compensation policy or practice

Overall Compensation Principle

The Corporation makes use of a solid corporate and management policy focused on enchantment, which seeks to exceed customers’ expectations. In line with such belief, the purpose of the compensation programs is to attract and retain professionals, who have the capabilities and ethical principles required by the corporation, and to encourage them to achieve goals and create value to shareholders. For this reason, the programs seek to recognize and reward the individual performance in relation to the Corporation’s results, at competitive market levels.

The Corporation’s compensation is based upon the following assumption:

• Business goals and strategies; • Best market practices; • Shareholders’ interests on the creation of long-term sustainable value; • Corporation’s vision, mission and values.

Pursuant to the best Corporate Governance practices, the Chairman of the Board of Directors and the Chief Executive Officer are distinct executive officers. Lojas Renner has a permanent Fiscal Council, a People Committee, a Sustainability Committee, an Audit and Risk Management Committee and Strategic Committee. Furthermore, the Board of Directors can create other committees.

As set forth in the Bylaws, in addition to the duties set forth in the applicable legislation, the election and removal of the members of the Board of Directors and the establishment of the annual overall compensation of the members of the Board of Directors, the Board of Executive Officers and the Fiscal Council is incumbent upon the General Meeting. In the fiscal year ended on December 31, 2020 Administrators’ compensation totaled R$ 35.7 million, which includes fixed compensation, variable compensation and expenses related to the stock options plan, as per provided for in tables of item 13.2 below.

The Board of Directors is responsible for the distribution of global compensation among the Directors and Officers, after taking into account the opinion of the People Committee. The Board of Directors is also responsible for establishing the profit sharing amount payable to the Corporation’s officers and employees, as well as for the execution of any agreement to be entered into by and between the Corporation and any Officer, which provides for the payment of any sums, including in the form of indemnification, as a result of the Officer’s voluntary or involuntary resignation; transfer of Control; or any other similar event.

The People Committee, consisting of independent directors, is responsible for analyzing management’s compensation policies and programs.

The programs and amounts of individual compensation of the Board of Executive Officers are proposed to the Committee by the Chief Executive Officer, in reliance upon the compensation policy currently in force. In making his/her proposal, the Chief Executive Officer takes into consideration the Corporation’s results in the preceding year, individual performance, market compensation surveys and other aspects, such as retention risks, capabilities and expertise, experience and potential of each executive officer. The Chief Executive Officer is advised by the Corporation’s human resources department and can resort to specialized external advisors concerning technical subject matters.

The People Committee is responsible for examining and issuing an opinion on the suggestions made by the Chief Executive Officer with respect to the executive officers, and for submitting the Chief Executive Officer’s compensation to the approval of the Board of Directors. The Committee, upon examination and presentation of suggestions, adopts the same parameters used by the Chief Executive Officer in the compensation payable to the executive officers, that is, the Corporation’s results in the preceding year, individual performance, market compensation surveys and other aspects, such as retention risks, capabilities and expertise, experience and potential of each executive officer in the Corporation. The Committee is also advised by the Corporation’s human resources department and by external advisors specialized in executive compensation and legal subject matters. In such cases, the People Committee has direct access to the external advisors, without the Board of Executive Officers’ involvement or participation.

169

The People Committee is also responsible for recommending the compensation policies and amounts payable to the directors. Upon analysis of the directors’ policies and compensation, the People Committee relies upon good corporate governance practices, market compensation surveys and other aspects, such as capabilities, experience and background of each director. The People Committee can also be advised by the Corporation’s in-house departments, as well as by external advisors, without the Board of Executive Officers’ involvement or participation.

The Corporation’s Fiscal Council is permanent and is composed of independent professionals, elected at AGM, with the powers and duties conferred upon the Fiscal Council by operation of law. The Fiscal Council’s compensation is set by the Annual General Meeting which elected its members, in conformity with paragraph 3 of article 162 of the Corporation Law and Company’s Bylaw.

On March 15, 2018, the Board of Directors approved the Nomination and Compensation Policy for Members of Management, which can be consulted on the Company's Investor Relations website - Governance - Bylaws and Policies.

b. Compensation composition: i. Description of the compensation components and the purpose of each of such amounts

The compensation payable to the members of the Board of Directors is composed of:

• Fixed compensation: based upon customary market practices and whose purpose is to recognize the directors’ importance, both internally and externally; • Variable compensation: represented by the tangible participation in the meetings of the Board of Directors. This compensation is no longer paid as a variable as of July, 2019 (inclusive).

The Board of Directors elects, among its members, three (3) Directors to compose the People Committee, who are independent directors, pursuant to the provisions set forth in Paragraph 1 of article 16 of the Bylaws and the Bovespa’s Novo Mercado Listing Regulation. To perform of their duties, the directors elected are entitled to a compensation equivalent to one additional meeting so long as the directors compose the committee. The fixed portion of the Board Chairman's compensation is one third more than for the remaining Directors. From 2011 onwards, an additional fee a third higher than fixed amount received for sitting on the committees was introduced for the latter’s respective chairmen.

In addition to the compensation described above, the members of the Board of Directors, as set forth in the Internal Rules of the Corporation’s Board of Directors, are also reimbursed, by the Corporation, for all transportation and accommodation expenses necessary for the performance of their respective duties.

The overall compensation payable to the Board of Executive Officer consists of four components:

• Fixed Compensation: the purpose of which is to recognize and acknowledge the importance of the position, both internally and externally, as well as the executive officer’s individual performance, experience, educational background and expertise. • Fringe Benefits: the purpose of which is to supplement the public welfare benefits and protect the officers and family members in accordance with customary market practices, by ensuring perfect conditions for the exercise of the position. • Variable Compensation: the purpose of which is to reward the achievement and overcoming of the Corporation’s and individual’s goals in line with the budget, strategic planning and the market. • Stock Option Plan and Restricted Stock Plan: the purpose of which is to strengthen the retention of executive officers and align their interests with the shareholders’ interests with respect to the creation of long-term and sustainable value to the business.

The compensation payable to the Corporation’s Fiscal Council consists of: • Fixed Compensation: the total amount equivalent to, at least, ten per cent (10%) of the average compensation attributed to each executive officer, not included benefits, allowances and shares profits.

In addition to the compensation described above, the members of the Fiscal Council are also reimbursed, by the Corporation, for all transportation and accommodation expenses necessary for the performance of their respective duties.

From 2011 onwards, a higher compensation for the Fiscal Board Chairman was introduced being one third more than for the remaining members of the Board.

170

ii. Proportion of each component in overall compensation related to the last three fiscal years:

Fiscal Year 2018

Board of Board of Executive Fiscal Committees (b) Directors Officers Council Fixed Compensation 61.4% 100.0% 23.0% 100.00% Benefit N/A N/A 3.2% N/A Variable Compensation 38.6% N/A 28.7% N/A Stock-based Compensation (a) N/A N/A 45.1% N/A TOTAL 100.0% 100.0% 100.0% 100.0%

Fiscal Year 2019

Board of Board of Executive Fiscal Committees (b) Directors Officers Council Fixed Compensation 60.5% 100.0% 26.9% 100.00% Benefit N/A N/A 4.3% N/A Variable Compensation 3.5% N/A 27.8% N/A Stock-based Compensation (a) 36.0 N/A 41.0% N/A TOTAL 100.0% 100.0% 100.0% 100.0%

Fiscal Year 2020

Board of Board of Executive Fiscal Committees (b) Directors Officers Council Fixed Compensation 66.3% 100.0% 36.7% 100.00 Benefit N/A N/A 5.0% N/A Variable Compensation 3.5% N/A 8.6% N/A Stock-based Compensation (a) 33.7% N/A 49.7% N/A TOTAL 100.0% 100.0% 100.0% 100.0%

Note: (a) – Adoption of the Black&Scholes method. On the Board of Directors, are contractual grants from Mr. José Galló, received even when a member of the Executive Officers.

iii. Calculation and adjustment method for each of the compensation components

The compensation levels are based upon customary market practices obtained annually by means of salary surveys conducted by specialized consulting companies, out of which are selected specific companies that reflect one of the following characteristics: • Similar size to Lojas Renner, in terms of revenues; • Retail segment; • Competitors in terms of human resources; • Consistent and similar compensation policies.

The fixed compensation or the fixed fees are based upon average compensation paid by the market and adjusted on an annual basis in conformity with market practices, individual performance and other factors, such as the executive officer’s potential, specific capabilities, experience on the position and retention risks.

The benefits offered by the Corporation are in line with market practices. Officers are entitled to the following benefits: • Health care plan

171

• Physical check-up • Life insurance • Vehicle • Mobile telephone

The Variable Compensation is based upon the concept of profit sharing, in which a target reward (“target”) is defined and associated with the Corporation’s and individual’s weighted-average performance goals. For this reason, the following components are used: Operating Income (Loss), Net Operating Revenues, Return on Invested Capital (ROIC) and Succession Plans. The financial goals are based upon the budget approved by the Board of Directors.

From 2021, the Executive Board’s variable remuneration is to be linked to ESG goals. The goals are annual with monitoring of indicators for partial results after six months. The metrics are largely related to the public commitments assumed for 2021, indicators focusing on aspects such as climate change (level of CO2 emissions and renewable energy), compliance of suppliers of products and manufacturing processes of textile products which reduce the environmental impact through the medium of raw materials and processes.

The achievement of goals is evaluated at the end of the year and the corresponding reward is calculated, in accordance with the Corporate Governance policies previously described.

We further emphasize that the LTI Pans’ rule according to which POCA and/or RESTRITA shall only be granted in years where the Company has made, in the immediately preceding fiscal year, sufficient earnings to enable payment of mandatory dividends to shareholders. In addition, for the purposes of such grants, each executive shall be reviewed based on a range of objectives as measured by: corporate goals, individual goals, and level of adherence to the Company’s principles and values.

Any potential gains arising out of the Stock Option Plan are subjected to the corporation’s appreciation, which is measured through the corporation’s stock prices on stock exchanges, based on the option strike price (stock call option). Further details on the Stock Option Plan are available in items 13.4 to 13.8.

iv. Reasons supporting the compensation composition

The desired competitive position of overall compensation (sum of all components) corresponds to the third market fourth (75%), and fixed portions (base salary and benefits) are aligned with the average market amounts. The purpose of such composition is:

• To compete with customary market practices, which allows to attract and retain professionals with the necessary qualifications;

• To associate a portion of the compensation with the corporation’s results;

• To generate balance between the different compensation components, which encourage the achievement of short, medium and long-term results, within reasonable risk levels;

• To balance the short and long-term variable compensation aiming at the generation of sustainable annual results and creation of value to shareholders.

v. the existence of members non remunarated by the issuer and the reason for this fact

Until April, 2019 the ex-CEO was also Board of Directors Member, not receiving compensation for the Board of Directors Member and therefore he was not in the number of members and neither on the amount of the remuneration of the Board of Directors. The members of the Sustainability Committee did not receive remuneration for participation on this Committee until June 2016.

c. Key performance indicators taken into account in the determination of each compensation component

The set of components of the compensation seeks to recognize the Corporation’s and individual’s performance, at competitive market levels. Fixed compensation is based upon the market average compensation obtained from salary surveys conducted by specialized consulting companies and individual performance.

172

Individual performance is measured by a cross between skills and results. The skills are achieved through the annual evaluation of the executive, based on their adherence to the principles and values of the company and their individual skills. The result is achieved through the individual goals that stem from the company's strategic planning and are deployed for all executives.

Variable compensation payable to the Board of Executive Officers is based upon business goals and strategies, aiming at the creation of long-term and sustainable value to the Corporation.

From the business perspective, the main financial indicators used are: Operating Income, Net Revenues and (Return on Invested Capital). The short-term variable compensation derives from the performance on these indicators in each fiscal year, while the long-term variable compensation is built up to balance total executive compensation in the light of market conditions, internal equitability, performance and result.

d. How compensation is structured to reflect the evolution of performance indicators

One of the base salary adjustment factors is individual performance (which is measured based on individual goals, capabilities and conduct).

Variable Compensation is based upon the concept of profit sharing, in which a target reward (“target”) is defined and associated with the Corporation’s and individual’s weighted-average financial performance goals. The financial goals are based upon the budget, which is approved by the Board of Directors, and include the estimate of the plan’s costs. Therefore, the achievement of goals automatically generates the funds necessary for the payment of reward, thereby resulting in a self- financed plan. From 2021 onwards, the Executive Board’s variable compensation is also linked to ESG goals.

The Stock Option Plan consists of granting rights to purchase the corporation’s stock, in conformity with price and term rules, previously approved by the shareholders at the General Meeting. Strike price is the weighted-average trading price during thirty (30) consecutive days of trading on the stock exchange, prior to the date of the event that gave rise to the application thereof, and a total vesting period of four years is defined for the exercise of the options. In case the executive officer resigns or is removed from the company during the vesting period, he/she will no longer be entitled to any rights. Therefore, the executive officers’ gains arising out of the Stock Option Plan rely directly upon the appreciation of the corporation’s stock after the granting of the options and during the vesting period.

The Restricted Stock Plan consists in granting company stock transfer rights, respecting rules deadlines previously approved by the shareholders at the General Meeting. The Restricted Stocks to be granted to participants will be those in the Company's treasury. The definite transfer of Restricted Stocks to the participants is conditioned to the fulfillment of a grace period of three years for each grant, and at the end of the grace period, the participant shall have employment agreement with the Company in full effect, or the grants shall be cancelled.

e. How the compensation policy or practice is aligned with the short, medium and long-term interests of the issuer

The corporation’s compensation strategy is based upon customary market practices, which allows the attraction, retention and motivation of qualified professionals with respect to the implementation and operation of business strategies approved by shareholders. The payment of the annual variable compensation plans is subjected to the corporation’s short and medium term financial growth components (Net Operating Revenues), operating efficiency (Operating Income (Loss)) and ROIC. The long- term incentive plan (POCA) is based upon the Stock Option Plan and restricted stock, therefore, relies directly upon the appreciation of the corporation’s market value, that is, the appreciation of the corporation’s stock in the long run.

We further emphasize that the LTI Pans’ rule according to which POCA and/or RESTRITA shall only be granted in years where the Company has made, in the immediately preceding fiscal year, sufficient earnings to enable payment of mandatory dividends to shareholders. In addition, for the purposes of such grants, each executive shall be reviewed based on a range of objectives as measured by : corporate goals, individual goals, and level of adherence to the Company’s principles and values.

173

f. Existence of compensation supported by subsidiaries, direct or indirect controlled or controlling companies

The members of the Board of Directors, People Committee, Board of Executive Officers and Fiscal Council are not entitled to compensation supported by subsidiaries, direct or indirect controlled or controlling companies.

g. Existence of any compensation or benefit subjected to the occurrence of any given corporate event, such as the transfer of the issuer’s shareholding control

There is no compensation or benefit linked to the occurrence of a specific corporate event.

13.2 Total Compensation of the Board of Directors, the Statutory Board of Executive Officers and the Fiscal Council:

Year 2021 – Estimated Annual Amounts (*)

Board of Statutory Board Fiscal TOTAL Directors of Executive Council Officers Number of Members 8.00 5.00 3.00 16.00 Number of Remunerated Members 8.00 5.00 3.00 16.00 ANNUAL FIXED COMPENSATION (R$) Self-employment Income 11,802,300.00 6,698,825.00 669,375.00 19,170,500.00

Direct and indirect benefits - 850,000.00 - 850,000.00 Participation in Committee 2,400,000.00 - - 2,400,000.00 Others - - - - Description of other fixed compensation - - - - VARIABLE COMPENSATION (R$) Bonus - - - - Profit sharing - 7,000,000.00 - 7,000,000.00 Participation in Meeting - - - - Commissions - - - - Others - - - - Description of other variable compensation - - - - RETIREMENT BENEFIT - - - - BENEFITS DUE TO THE INTERRUPTION IN THE - - - - EXERCISE OF THE POSITION STOCK-BASED COMPENSATION INCLUDING 1,393,303.15 9,106,696.85 - 10,500,000.00 OPTIONS (R$)

TOTAL (R$) 15,595,603.15 23,655,521.85 669,375.00 39,920,500.00

Notes: The value of the remuneration estimated for 2021 incorporates the readjustment of the fees of the Board of Directors, the Executive Board and the Fiscal Council. In order to determine the number of members of each organ, the total number in each month was added and divided by 12 (simple average). The value of the share-based remuneration in the Board of Directors represents contractual grants of the former Chief Executive Officer, received when still a member of the Executive Board. The amount mentioned, in the Statutory Board of Executive Officers, as profit sharing corresponds to variable compensation, payable if some goals established by the Company are achieved.

Year 2020 – Annual Amounts

174

Board of Statutory Board Fiscal TOTAL Directors of Executive Council Officers Number of Members (a) 8.00 5.00 3.00 16.00 Number of Remunerated Members (b) 8.00 5.00 3.00 16.00 ANNUAL FIXED COMPENSATION (R$) Self-employment Income 11,389,029.95 5,788,016.66 631,254.98 17,808,301.59

Direct and indirect benefits - 787,900.00 - 787,900.00 Participation in Committee 2,150,453.22 - - 2,150,453.22 Others - - - - Description of other fixed compensation - - - - VARIABLE COMPENSATION (R$) Bonus - - - -

Profit sharing - 1,362,846.79 - 1,362,846.79 Participation in Meeting - - - - Commissions - - - - Others - - - -

Description of other variable compensation RETIREMENT BENEFIT - - - - BENEFITS DUE TO THE INTERRUPTION IN THE - - - - EXERCISE OF THE POSITION STOCK-BASED COMPENSATION INCLUDING 5,785,632.43 7,842,410.89 - 13,628,043.32 OPTIONS (R$) (d)

TOTAL (R$) 19,325,115.60 15,781,174.34 631,254.98 35,737,544.92

Notes: The value of the remuneration estimated for 2020 incorporates the readjustment of the fees of the Board of Directors, the Executive Board and the Fiscal Council. In 2020, there was a 25% reduction in salaries for a period of four months. In order to determine the number of members of each organ, the total number in each month was added and divided by 12 (simple average). The value of the share-based remuneration in the Board of Directors represents contractual grants of the former Chief Executive Officer, received when still a member of the Executive Board. The amount mentioned, in the Statutory Board of Executive Officers, as profit sharing corresponds to variable compensation, payable if some goals established by the Company are achieved.

Year 2019 – Annual Amounts Board of Statutory Board Fiscal Directors of Executive Council TOTAL Officers Number of Members (a) 8.00 5.60 3.00 16.60 Number of Remunerated Members (b) 7.70 5.60 3.00 16.30 ANNUAL FIXED COMPENSATION (R$) Self-employment Income 8,572,800.00 5,662,946.66 657,130.00 14,892,876.66 Direct and indirect benefits - 915,463.00 - 915,463.00 Participation in Committee 2,148,200.00 - - 2,148,200.00 Others - - - - Description of other fixed compensation VARIABLE COMPENSATION (R$)

Bonus - - - 494,000.00 Profit sharing - 5,855,451.36 - 5,855,451.36

175

Participation in Meeting 494,000.00 - - 494,000.00 Commissions - - - - Others - - - -

Description of other variable compensation RETIREMENT BENEFIT - - - - BENEFITS DUE TO THE INTERRUPTION IN THE - - - - EXERCISE OF THE POSITION STOCK-BASED COMPENSATION INCLUDING 5,091,996.61 8,653,965.28 - 13,745,961.89 OPTIONS (R$)

TOTAL (R$) 16,306,996.61 21,087,826.30 657,130.00 38,051,952.91

Notes: The value of the remuneration estimated for 2019 incorporates the readjustment of the fees of the Board of Directors, the Executive Board and the Fiscal Council according to the INPC for 2018 and market conditions. In order to determine the number of members of each organ, the total number in each month was added and divided by 12 (simple average). In the Board of Directors, the participation in meetings compensation is no longer paid as a variable as of July 2019. The former Chief Executive Officer is also a member of the Board of Directors, being unremunerated for exercising the position of Director until April 2019, and for this reason not included in the number of members with seats on the board until April 2019. From this date it is considered the Board of Directors compensation. The value of the share-based remuneration in the Board of Directors represents contractual grants of the former Chief Executive Officer, received when still a member of the Executive Board.

Year 2018 – Annual Amounts Board of Statutory Board Fiscal Directors of Executive Council TOTAL Officers Number of Members (a) 8.00 6.00 3.00 17.00 Number of Remunerated Members (b) 7.00 6.33 3.00 16.33 ANNUAL FIXED COMPENSATION (R$) Self-employment Income 1,505,370.00 6,627,603.34 576,000.00 8,708,973.34 Direct and indirect benefits - 911,697.60 - 911,697.60 Participation in Committee 1,641,600.00 - - 1,641,600.00 Others - - - - Description of other fixed compensation VARIABLE COMPENSATION (R$) Bonus - - - -

Profit sharing - 8,294,749.20 - 8,294,749.20 Participation in Meeting 946,200.00 - - 946,200.00 Commissions - - - - Others - - - -

Description of other variable compensation RETIREMENT BENEFIT - - - - BENEFITS DUE TO THE INTERRUPTION IN THE - - - - EXERCISE OF THE POSITION STOCK-BASED COMPENSATION INCLUDING - 13,030,852.06 - 13,030,852.06 OPTIONS (R$)

Observation

TOTAL (R$) 4,093,170.00 28,864,902.20 576,000.00 33,534,072.20

176

Notes: The value of the compensation for 2018 includes the restatement of compensation due to the Board of Directors, the Board of Executive Officers and the Fiscal Council according to the INPC inflation index 2017, besides an adequacy to the market. In order to determine the number of members of each organ, the total number in each month was added and divided by 12 (simple average). The former Chief Executive Officer is also a member of the Board of Directors, being unremunerated for exercising the position of Director and for this reason not included in the number of members with seats on the board.

13.3 Variable compensation to the members of the Board of Directors, the Statutory Board of Executive Officers and the Fiscal Council:

The Corporation does not pay bonus, but adopts the so-called variable compensation, which is recorded in the Corporation’s Financial Statements as Statutory Profit Sharing. The members of the Fiscal Council do not receive variable compensation. Regarding the Board of Directors, the variable compensation is composed exclusively of the attendance to the meetings.

The variable compensation provided for the year ended on 12.31.2018.

Board of Statutory Board Fiscal

Directors of Executive Council TOTAL Officers

Number of Members (a) 8.00 6.00 3.00 17.00

Number of Remunerated Members (a) - 6.33 - 6.33 Bonus Minimum amount set out in the compensation - - - - plan (R$) Maximum amount set out in the compensation - - - - plan (R$) Amount set out in the compensation plan, upon - - - - achievement of the goals established (R$)

Profit Sharing Minimum amount set out in the compensation - - plan (R$) Zero Zero

Maximum amount set out in the compensation - No Limit - No Limit plan (b)

Amount set out in the compensation plan, upon 13,000,000.00 - - 13,000,000.00 achievement of the goals established (R$) (c)

Amount effectively recognized in net profit for 8,294,749.20 8,294,749.20 - - the fiscal years (R$)

The variable compensation provided for the year ended on 12.31.2019.

Board of Statutory Board Fiscal

Directors of Executive Council TOTAL Officers

Number of Members (a) 8.00 5.60 3.00 16.60

Number of Remunerated Members (a) - 5.60 - 5.60 Bonus Minimum amount set out in the compensation - - - - plan (R$)

177

Maximum amount set out in the compensation - - - - plan (R$) Amount set out in the compensation plan, upon - - - - achievement of the goals established (R$)

Profit Sharing Minimum amount set out in the compensation - - plan (R$) Zero Zero

Maximum amount set out in the compensation - No Limit - No Limit plan (b)

Amount set out in the compensation plan, upon 10,500,000.00 - - 10,500,000.00 achievement of the goals established (R$) (c)

Amount effectively recognized in net profit for 5,855,451.36 - - 5,855,451.36 the fiscal years (R$)

The variable compensation provided for year ended on 12.31.2020.

Board of Statutory Board Fiscal

Directors of Executive Council TOTAL Officers

Number of Members (a) 8.00 5.00 3.00 16.00

Number of Remunerated Members (a) - 5.00 - 5.00 Bonus Minimum amount set out in the compensation - - - - plan (R$) Maximum amount set out in the compensation - - - - plan (R$) Amount set out in the compensation plan, upon - - - - achievement of the goals established (R$)

Profit Sharing Minimum amount set out in the compensation Zero Zero - - plan (R$)

Maximum amount set out in the compensation - No limit - No limit plan Amount set out in the compensation plan, upon - 2,851,500.00 - 2,851,500.00 achievement of the goals established (R$) (b) Amount effectively recognized in net profit for - 1,362,846.79 - 1,362,846.79 the fiscal years (R$)

The variable compensation estimated for the current year (2021 – forecast).

Board of Statutory Board Fiscal

Directors of Executive Council TOTAL Officers

Number of Members (a) 8.00 5.00 3.00 16.00

Number of Remunerated Members (a) - 5.00 - 5.00 Bonus

178

Minimum amount set out in the compensation - - - - plan (R$) Maximum amount set out in the compensation - - - - plan (R$) Amount set out in the compensation plan, upon - - - - achievement of the goals established (R$)

Profit Sharing Minimum amount set out in the compensation Zero Zero - - plan (R$)

Maximum amount set out in the compensation - No Limit - No Limit plan Amount set out in the compensation plan, upon - 7,000,000.00 - 7,000,000.00 achievement of the goals established (R$) (b)

Notes: (a) – In order to determine the number of members of each organ, the total number in each month was added and divided by 12 (simple average).

(b) – In fiscal years 2018, 2019 and 2020, the effectively recognized values in the result were less than the forecasted due to targets not being exceeded for these years.

13.4 The compensation plan based on shares for the Board and the Board of Executive Officers a. general terms and conditions

Stock Option Plan approved by the Company’s Extraordinary General Shareholders’ Meeting held on May 25, 2005 and amended by the Extraordinary General Shareholders´ Meetings held on April 10, 2007 and March 30, 2009; and the Stock Options and Restricted Stock Plans approved by the Company’s Extraordinary General Shareholders’ Meeting held on September 23, 2015 and amended by the Extraordinary General Shareholders´ Meetings held on October 21, 2020, are subject to oversight by the People Committee (“Committee”), created pursuant to the Company´s Corporate Bylaws and comprised of independent members of the Company’s Board of Directors (“Board”).

The members of the Committee may not be beneficiaries of the stock options, the purpose of the Plan.

In exercising its powers, the Committee is subject to the limits enshrined in law, in the Corporate Bylaws, in the applicable regulations, in the Plan and in the guidelines established by the Company’s shareholders in a general shareholders meeting. The Committee has wide powers to implement the Plan and to suggest necessary and suitable measures for its administration. However, the Committee’s decisions are not binding on the Company, except when ratified by the Board. Cases not covered herein are regulated by the Board, where necessary being submitted for the decision of a General Shareholders Meeting.

The grant of stock options and restricted stock for subscription or acquisition of Participants selected by the People Committee are made periodically through the Stock Options Grants Programs and Restricted Stock Programs (“Grants Programs”). For each Grants Program, the Committee determines the characteristics as listed below. These characteristics are set at the Committee´s discretion, always conditional on adherence to the rules of the Plan.

The Committee shall establish the conditions for each one of the Programs, respecting the general criteria for each Plan. In the Stock Options Plan (“Plan”), approved by the Company´s Extraordinary General Shareholders’ Meeting held on May 25, 2005, and amended by the Extraordinary General Shareholders Meeting held on April 10, 2007 and March 30, 2009, the requirements are: (i) The total quantity of the Company´s common shares, traded on the stock exchanges, which may be subscribed upon the exercising of the option; (ii) The list of eligible participants as well as the number of options granted to each participant; (iii) The vesting periods for exercising the option, where the exercising dates may be scheduled so that the options become exercisable in relation to progressively larger quantities of common shares underlying the option or with respect to other rules for exercising the options; (iv) The subscription price; (v) The conditions for subscribing the shares; (vi) The maximum vesting period for exercising the option or the criteria for doing so; (vii) Any restrictions on the trading of the subscribed shares due to the exercising of the option; and (viii) Eventual penalties. In the Stock Option Plan approved by the Company´s Extraordinary General Shareholders’ Meeting held on September 23, 2015 and amended by the Extraordinary General Shareholders´ Meetings held on October 21, 2020, the requisites are: (i) The total number of the Company´s common shares, traded on the stock exchanges, which may be subscribed or acquired by the Participants upon the exercising of the option; (ii) The list of eligible Participants as well as the quantity of options granted to each Participant; (iii) The periods at the end of which the option becomes exercisable, pursuant to item “7” of this Plan; (iv) The subscription price of the shares or the price for acquisition of the shares held as treasury

179

stock; (v) The conditions for the paying in of the shares to be subscribed or for payment of the shares to be acquired; (vi) The maximum period for exercising the option or the criteria for determining the same; (vii) Any restrictions on trading of the subscribed and/or acquired shares due to the exercising of the option; and (viii) Eventual penalties. Conversely, the Restricted Stock Plan approved by the Company´s Extraordinary General Shareholders’ Meeting held on September 23, 2015 and amended by the Extraordinary General Shareholders´ Meetings held on October 21, 2020, subject to approval of the Board, the Committee may grant to eligible Participants a quantity of Restricted Shares, under each program, conditional on compliance with the following requirements: (i) Compliance with a Grace Period of 3 (three) years; and (ii) At the end of the Grace Period, the Participant’s work contract with the Company must be in full force and effect, without prejudice of the other provisions of the Plan and the Program.

Any option granted in accordance with any Grants Program is subject to all terms and conditions established in the Plan. The provisions contained in the Plan shall prevail in the event of conflict between the Plan and the provisions of the Grants Programs or any instrument or agreement entered into as a result of the Plan.

The terms and conditions for each option granted under the Plan and the Grants Programs are set out in the Instrument of Adherence to the Stock Option Plan and in the Private Instrument to the Restricted Shares Plan signed by the participant.

b. principal objectives of the Plan

The objectives of the Stock Options Plans are: (a) to attract, motivate and retain qualified executives, (b) to align the interests of the executives with those of the Company and its shareholders, and (c) to incentivize Statutory Officers, Executives and Employees (as described in item 3 of the Plan) to contribute to the results of the Company through the granting of options on the Company´s capital stock. Again, the Restricted Stock Plan is created with the purpose of: (i) stimulating the expansion, success and execution of the corporate objectives of Lojas Renner S.A. ("Company"); (ii) attract and retain the best professionals over time and offer incentives which align the interests of these professionals with the continued growth and success of the Company; and (iii) to enable the Company or other corporations under its control ("Subsidiaries") to maintain the Participants’ or Beneficiaries’ link as employees to the Company or other corporations.

c. manner in which the Plan contributes to these objectives

The Stock Option Plan consists of the concession of rights to subscribe Company shares, conditional on compliance with predetermined rules for price and term. The exercise price is based on the quotation of the share on the grant date and there is a total vesting period of four years for exercising the options. Should the executive resign from the Company during the vesting period, the beneficiary will lose his rights under the Plan. Hence, the compensation of the executive under the Plan is directly contingent on the appreciation of the Company´s share following the grant of the options and during the vesting period. Under normal market conditions, the share price on the exchange reflects corporate strategies and the consistent and positive financial strategies employed over the long term.

The Restricted Stock Plan consists in the concession of Company share transfer rights conditional on compliance with the rules on terms, pre-approved by the shareholders in a General Meeting. The Restricted Stock to be granted to the participants will be those held as the Company´s treasury stock. The definitive transfer of the Restricted Stock to participants will be contingent on a grace period of three years for each grant, at the end of which the participant’s work contract with the Company must continue to be in full force and effect. Should this not be the case, the employee’s stock grants shall be cancelled.

By allowing Participants to become shareholders of the Company, it endeavors to retain talented employees and align their objectives with those of the Company. Using this model, the sharing of corporate risks and gains can be achieved through the appreciation in value of the shares acquired within the scope of the Plans.

d. how is the plan incorporated into the issuer’s compensation policy

The Plans carry a significant weighting in the overall compensation of the statutory officers (see item 13.1.ii) and senior management, ensuring that executives are duly focused on the long-term capitalization of the Company, and consequently the creation of sustainable results. In 2020, the Plan represented 49.7% of the compensation of the Board of Executive Officers and 33.7% of the compensation of the Board of Directors. As at December 31, 2020, the Plan’s participants consisted of 5 statutory officers, 1 Board Director Member(ex-CEO).

180

e. how the plan is aligned to the interests of the management and issuer over the short, medium and long term

The objective of the Company’s aggregate compensation strategy is to ensure that compensation matches that of the market as a whole. As the Plan represents a significant weighting of aggregate overall compensation, the executives are cognizant that the competitiveness of their compensation is linked to the sustainable growth in the Company’s value over the short, medium and long terms and which, in turn, is also the expectation of the shareholders.

As the Plans are normally subject to annual option grants and restricted shares at market values, there is a continual focus on the future appreciation of the shares and the Company. It is also worth noting that the number of options granted under each program is set so that executives shall only make gains aligned with the market’s if future share appreciation effectively aligns with shareholders’ expectations. On the other hand, if depreciation takes place, the executives shall make no gains from the stock option plan, because they pay for the action for the exercise, and may make reduced gains from Restricted Shares. Therefore, their total compensation shall lie below market practice.

We further emphasize that the LTI Pans’ rule according to which Stock Option and Restricted Shares Plans shall only be granted in years where the Company has made, in the immediately preceding fiscal year, sufficient earnings to enable payment of mandatory dividends to shareholders. In addition, for the purposes of such grants, each executive shall be reviewed based on a range of objectives as measured by: corporate goals, individual goals, and level of adherence to the Company’s principles and values.

f. maximum number of shares which can be granted under the Plans

The stock options granted under the Stock Option Plan approved in 2005, including those already exercised or otherwise, and discounting those cancelled due to termination, may provide rights on a quantity of underlying shares not exceeding 9% (nine percent) of the total shares issued by the Company at any time, over a period of 10 years as from May 25, 2005 to May 25, 2015 and as long as the total number of shares issued or those which may potentially be issued under the terms of the Plan shall always be within the limit of the Company’s authorized capital.

The stock option grants under the Stock Option Plan approved in 2015, including those already exercised or otherwise, and discounting those cancelled due to termination situations (see items 11 and 12 of the Plan) may give rights on a number of shares not exceeding 3% (three percent) of the total shares issued by the Company at any time, and contingent on the total number of shares issued or may potentially be issued under the terms of the Plan always being within the limit of the Company’s authorized capital.

For the purposes of the Restricted Stock Plan and upon the prior recommendation of the Committee, the Board may grant a number of common, nominative and book entry shares issued by the Company not exceeding 1% (one percent) of the total number of shares issued by the Company at any time ("Restricted Stock"). Restricted Stock to be granted to Participants will be represented by shares held in the Company’s treasury stock.

The percentages for each Plan correspond to the total in each Plan, including Statutory Officers, Non-statutory Executives and Employees. There is no specific percentage for Management.

In relation to the Stock Options Plan for 2005-2015, until December 31, 2020, 43,037,885 stock options (already excluding those cancelled) had been granted to Management, representing 5.41% of the Company’s capital stock. In relation to the Stock Options and Restricted Shares Plan 2016-2020, 4,156,745 stock options (already excluding cancelations) had been granted to Management, representing 0.52% of the capital stock, of which, 1,322,669 were exercised, and a further 698,830 restricted shares (0.09% of the capital stock), to Management, of which 528,770 were transferred.

g. maximum number of options to be granted

The stock options granted under the Stock Option Plan approved in 2005, including those already exercised or otherwise, and discounting those cancelled due to termination situations, may provide rights to a number of shares not exceeding 9% (nine percent) of the total number of shares issued by the Company and any time, in the 10-year period from May 25, 2005 to May 25, 2015, and contingent on the total number of shares issued or may potentially be issued under the Plan albeit always within the limit of the Company’s authorized capital.

The stock option granted under the Stock Option Plan approved in 2015, including those already exercised or otherwise, and discounting those cancelled due to termination situations (see items 11 and 12 of the Plan) extend rights on a number of

181

underlying shares not exceeding 3% (three percent) of the total shares issued by the Company at any time, and contingent on the total number of shares issued or may potentially be issued under the terms of the Plan albeit always within the limit of the Company’s authorized capital.

These percentages for each Plan correspond to the total in each Plan, including Statutory Officers, Non-statutory Executives and Employees. There is no specific percentage for Management.

h. conditions for acquisition of shares

Professionals participating in the Plan are those selected from among Officers, Executives and Employees of the Company and its subsidiaries ("Participants" or "Beneficiaries") by the Chief Executive Officer, submitted to the People Committee and approved by the Board. For the purposes of this Plan: (a) “Officers” means Statutory Officers of the Company and/or its Subsidiaries; (b) “Executives” means staff who exercise non-statutory functions or management who are employees of the Company and/or its Subsidiaries; and (c) “Employees” means staff holding strategic positions in the businesses of the Company and/or its Subsidiaries, as identified by the Committee and approved by the Board. Up to the present, no grants have been made either to the members of the Board or to Service Providers. The Plan does not permit grants to be made to the members of the People Committee.

Those eligible shall respect a vesting period before exercising their options during which time they must remain working for, or rendering services to the Company. This period will be established on the occasion of each grant based on market practices and in accordance with the recommendations of the People Committee.

i. criteria for setting the acquisition or exercise price

The basic price for exercising the options and payment of the subscription or acquisition of shares by the Beneficiaries of the Stock Option Plan shall be decided by the Board, pursuant to the Committee’s recommendation for each Program. Prices will be aligned to the legal parameters prevailing on the date of the option grant date, but will never be less than 100% (one hundred percent) of the Stock Exchange Value of the shares issued by the Company on the date of the option grant. This same price (100% of the Stock Exchange Value) shall be observed in the event of sale of treasury stock by the Company to the Participants. For the Purposes of the Plan and each Program, the Stock Exchange Value of the shares for the exercising of the option shall be the weighted average price for the last 30 (thirty) consecutive trading days on the stock exchange prior to the grant date.

For all intents and purposes, the value of the Restricted Stock shall correspond to 100% (one hundred percent) of the average price (excluding the after market) of the Company´s shares on the stock exchange for the day immediately preceding the date of transfer of the Restricted Stock to the Participant.

j. criteria for setting the vesting period

The Stock Option Plan approved in 2005 established that 50% of the options (considering the options comprising the same grant only) may be vested after three years, contingent on compliance with the other conditions of the Program and Plan. Following the elapsing of four years from their respective grant, the remaining options (considering the options comprising the same grant only) may be vested, subject to the other conditions of this Program and Plan.

In the case of the Stock Option Plan approved in 2015, 25% (twenty-five percent) of the options may be exercisable by the Participant after a year from their respective grant, considering the options for the same grant only, subject to compliance with the remaining conditions of this Plan, and in the same way successively at the rate of 25% (twenty-five percent) for each subsequent annual period. Following the elapse of four years from their respective grant, all the options considering only the

182

options of the same grant, will become exercisable, subject to the remaining conditions of this Plan and the respective Program. The period for exercising the options shall never exceed 6 (six) years as from option grant date. At the Extraordinary General Meeting held on October 21, 2020 the shareholders approved an amendment in the Plan, to options granted after this date, the options may be exercisable after two years of their respective granting, 20% (twenty percent) of the options, only considering the options under a same grant, may be exercised by the Participant, subject to the other conditions of this Program and the Plan, more 30% (thirty percent) after three years of their respective granting and the other 50% (fifty percent) after four years of their respective granting.

The Committee shall decide the period for exercising the options on a case by case basis according to the legal parameters on the date of the option grant, although this will never exceed 6 (six) years as from the option grant date.

In the case of the Restricted Stock Plan, the Grace Period is of 3 (three) years, at the end of which, the work contract of the Participant with the Company must be in full force and effect without prejudice of compliance with the remaining provisions of the Plan and the Program.

k. settlement

The stock price shall be paid by the holders of the stock options pursuant to the conditions determined by the Committee, contingent on subscription of the minimum pursuant to Law 6.404/76, in the event that the Committee authorizes the subscription by installment of the share price. The settlement of the subscription price of the shares earmarked to the exercising of the option shall be made in cash. Complementary to the Plan approved in 2005 and pursuant to the Grant Program, the participant shall have up to 4 (four) days following the exercise of the options to effect settlement and within a term not exceeding 5 (five) days, as from the exercising of the option for the Plan approved in 2015.

In the case of the Restricted Stock, following the elapsing of the Grace Period, and contingent on compliance with all the conditions to the Plan and the other applicable conditions, the Company shall transfer ownership of the Shares to the Participant within a term of 3 days. l. restrictions on transfer of the shares

The shares earmarked for the exercising of the stock options may not be sold to third parties while not totally subscribed.

m. criteria and events triggering suspension, amendment or extinguishment of the Plan

The Plan shall expire at any time, (a) upon the decision of an Extraordinary General Meeting, (b) upon cancellation of the Company’s registration as a publicly held company, (c) upon cessation of trading of the common shares in the over-the- counter market, organized market or stock exchange as a result of the corporate reorganization of the Company, (d) the dissolution and liquidation of the Company, or (e) by the elapsing of a term of 10 (ten) years for the Plan approved on May 25, 2005, and by the elapsing of the term of 10 (ten) years for the Plans approved on September 23, 2015, as from this date.

The extinguishment of the Plan by resolution of the Company’s shareholders shall neither affect the efficacy of the options still outstanding and previously granted, nor the prevailing restrictions as to negotiability of the shares and/or the right of preference.

In the case of the Stock Option Plan approved on May 25, 2005, in the event of a Corporate Reorganization of the Company (Corporate Reorganization of the Company means the incorporation, merger, spin-off or reorganization of the Company, in which the Company is not the surviving Company), the Plan and the Grants Programs shall be extinguished as well as any option granted up to then. The exception to this scenario is when the resolutions on the reorganization establish the permanence of the Plan and/or any Grants Program and assumption of options granted up to the date of the Corporate Reorganization with the substitution of these options for new options. In this case, the successor Company, its affiliate or subsidiary shall assume the appropriate readjustments in the number, type and price of shares and in this case, the Plan and the respective Grants Program shall continue in the form thereby established. In the event of cancelation of the Company’s registration as a publicly held company, cessation of trading, dissolution and liquidation of the Company, the Plan and the options granted under the said Plan shall be automatically extinguished.

In the case of the Stock Option Plan approved on September 23, 2015, in the event of a Corporate Reorganization of the Company, the Plan and the Programs shall be subject to scrutiny by the Board, in order to decide on the permanence of the Plan and/or any Program and the assumption of the options granted up to the date of the Corporate Reorganization with the substitution of these options by new options. In this context, Corporate Reorganization of the Company means the incorporation,

183

incorporation of shares, merger, spin-off or reorganization of the Company, in which the Company is not the surviving Company. In the event of cancelation of the Company’s registration as a publicly held company, cessation of trading, dissolution and liquidation of the Company, the Plan and the Programs shall be subject to the analysis of the Board in order to make a decision on the permanence of the Plan and/or any Program and the eventual assumption of the options granted up to then and their substitution for new options.

Should a Corporate Reorganization of the Company (as defined below) be implemented, in the case of the Restricted Stock Plan approved on September 23, 2015, the respective Plan and the Programs shall be analyzed by the Board in order to decide on the permanence of the Plan and/or any Program and the assumption of the Restricted Stock granted up to the date of the Corporate Reorganization with the substitution of this Restricted Stock by new stock issued by the corporation resulting from the Corporate Reorganization (Successor Company). In the context of this plan, Corporate Reorganization of the Company means the incorporation, incorporation of shares, merger, spin-off or reorganization of the Company, in which the Company is not the surviving Company. In the event of cancelation of the Company’s registration as a publicly held company, cessation of trading, dissolution and liquidation of the Company, the Plan and the Programs shall be subject to the analysis of the Board in order to make a decision as to the permanence of the Plan and/or any Program and the transfer of the Restricted Shares to the Participant.

n. effects of the withdrawal of the member of management from the collegiate bodies of the issuer on his rights under the share- based compensation plan

None of the Plan’s provisions guarantees the beneficiary’s right of permanence as an employee or service provider to the Company or its subsidiaries, or interferes in any way with the right of the Company or of its subsidiaries, subject to the legal conditions and those of the work contract or the contract as a service provider, as the case may be, to rescind at any time the relationship with the participant. Furthermore, none of the Plan’s provisions, gives to any holder of an option, rights concerning their permanence up to the expiry of their term of office as a Statutory Officer, or interferes in any way with the right of the Company to remove him/her or assuring the right to his/her reelection to the position.

In the event of termination of the participant upon the initiative of the Company or of its subsidiary, except with Cause and with the exception of termination due to situations established in the specific clauses of the Plans in adherence to the specific criteria required under the Plans, all the options which have been granted to the participant and which have not been exercised shall be automatically extinguished, ipso jure, irrespective of prior notice or indemnification. Notwithstanding, it shall be incumbent on the holder of the options, the right to exercise the options already exercisable on the date of termination over a period 90 (ninety) days, non-renewable, as from the date of termination, against settlement at sight and the paying in of the remaining balance in the case of subscription by installment. At the Committee’s discretion, this term may be extended, when such a decision is justified by the specific circumstances of the case. In the case of the Restricted Stock Plan, under any circumstances of Termination of the Participant at the initiative of the Company or its subsidiary, with or without Cause, and with the exception of termination in the light of situations established under Clause 8 of this Plan, pursuant to the specific criteria in the said Clause 8 below, all the Restricted Stock which has been allocated to the participant and with a Grace Period which has still to expire, shall be automatically extinguished, ipso jure, without any obligation on the part of the Company to indemnify the said participant.

In the case of resignation of the participant at his own initiative, for whatever reason, all options, which have been granted to him and are still not exercisable, shall be automatically extinguished irrespective of prior notice or indemnification. Notwithstanding, the holder of the options has the right to exercise the options which are already exercisable on the date of termination for a non-renewable term of 30 (thirty) days as from the date of termination through settlement at sight and the paying in of the remaining balance in the case of subscription by installment. Where Termination of the Participation occurs at the participant’s own request for whatever reason, in the case of the Restricted Stock Plan, all the Restricted Stock which has been allocated to the participant and with a Grace Period which has still to expire, shall be automatically extinguished, ipso jure, without any obligation on the part of the Company to indemnify the said participant.

In the event that termination of the holder of the Company´s options occurs due to Cause, the options granted and not yet exercised shall be extinguished, ipso jure, irrespective of prior notice or indemnification. The term for exercising exercisable options shall expire on the day immediately preceding termination date. Should the shares subscribed under the Plan not have been fully subscribed, the participant shall have the number of shares reduced proportionally to the amount effectively subscribed.

In the case of the decease of an option holder, all options not yet exercisable become immediately exercisable and the option shall be extensive to heirs or successors of the option holder, by legal succession or by testamentary provision up to the expiry of

184

the term of the option grant. In this case, the option may be exercised in full or partially by the heirs and /or successors of the option holder with settlement at sight. Should the shares subscribed under the Plan not be fully paid in, the legal representative of the participant shall have the original exercising period (which will be automatically extended for 2 (two) years as from the date of decease should the option expire prior to this date) to effect subscription of the total value of the subscribed shares or will have the number of shares reduced proportionally to the value effectively subscribed. In the case of the decease of a Participant, all Restricted Stock where the Grace Period has not yet elapsed shall become immediately due and will be transferred to the heirs or successors of the deceased Participant, holder of the Restricted Stock by legal succession or testamentary provision.

In the case of permanent incapacity or retirement of a participant, all options not yet exercisable shall become immediately exercisable and the payment of the exercise price shall be made at sight. The options already exercisable may be exercised within the original period conditional on payment being effected at sight. Should the shares subscribed under the Plan not be fully subscribed, the participant shall have the option’s original exercise period (which will be automatically extended for 2 (two) years from the date of permanent incapacity or retirement should the option expire before that date) to effect the paying in of the total value of the subscribed shares or alternatively, shall have the total number of shares reduced proportionally to the value effectively paid in. In the event of permanent incapacity or retirement with the resignation of a Participant, all the Restricted Stock where the Grace Period has not expired becomes immediately due to the Participant. For the purposes of the Plans, retirement is deemed the termination of the legal relationship of the Retired Participant at the initiative of the Company or its subsidiary which qualified the said Participant for the option grant or for the restricted stock based on the Participant being more than 60 (sixty) years of age and his retirement having been approved by the Brazilian Social Security Service - INSS.

Except in the case of assignment to heirs or successors, in the event of decease pursuant to item (7) of the Restricted Stock Plan, the restricted stock granted pursuant to the Plan is personal and non-transferable, the Beneficiary therefore not being able under any circumstances to assign, transfer or in any way sell to third parties the granted restricted stock, or the rights and obligations inherent to them. The Beneficiary undertakes neither to encumber the restricted stock granted nor insititute any lien whch may prevent the execution of the provision in the Plan.

In the event of the requirement to implement a public offering for acquisition of the Company’s shares pursuant to the Company’s Corporate Bylaws, or in the event of the success of a public offering for the acquisition of control of the Company pursuant to Article 257 of Law 6.404/76, either one or the other resulting in termination without Cause of a Plan Participant, at the Company’s initiative within a term of up to 12 (twelve) months of this event, it is hereby established that all the options previously granted or restricted stock attributed to the respective Participant and still not exercisable, shall become exercisable.

The early exercise of options or anticipated transfer of the restricted stock granted under the terms of the Plans may be implemented under other circumstances not expressly foreseen herein, provided that they are only used in situations of interest of the Company and for exceptional cases of Officers dismissal, always against the prior examination and opinion of the Committee, which shall evaluate the specific situation and, if the case, recommend approval to the Company’s Board.

13.5 The stock-based compensation of the Board of Directors and Statutory Board of Executive Officers

The members of the Corporation’s Board of Directors are eligible to the Stock Option Plan approved on General Meeting held on May 25, 2005, however, no member has received any grant up to the date hereof.

Stock-based compensation – year ended on 2018

For the year 2018, the 9th grant will no longer be recognized in the Corporation’s results, and, therefore, is not indicated in the table below.

Board of Board of Executive Directors Officers Number of 8 6 6 6 6 6 6 6 6 members Number of - 6 5 5 5 6 6 6 6 remunerated members As regards - 10th grant 11th grant 1st grant 1st grant 2nd grant 2nd grant 3rd grant 3rd grant each granting (A) and POCA RESTRICTED POCA RESTRICTED POCA RESTRICTED of call options: contractual Plan Plan Plan Plan Plan Plan grant (B)* approved approved approved approved approved approved in EGM in EGM in EGM in EGM in EGM in EGM

185

held on held on held on held on held on held on 09.23.15 09.23.15 09.23.15 09.23.15 09.23.15 09.23.15 granting date - 02.19.2014(A) 02.12.2015 02.04.2016 02.04.2016 02.09.2016 02.09.2017 02.08.2018 02.08.2018 03.05.2014(B) number of - 958,300 (A) 985,600 744,700 102,300 454,025 (A) 77,000 (A) 282,500 49,600 options granted 6,875,000 (B) 1,564,200 291,500 (B) (B) period for the - (A) 50% on 50% on 25% on 100% on 25% on 100% on 25% on 100% on options to 02.19.2017 02.12.2018 02.04.2017, 02.04.2019 02.09.2018, 02.09.2020 02.08.2019, 02.08.2021 become and and 25% on 25% on 25% on exercisable 50% on 50% on 02.04.2018, 02.09.2019, 02.08.2020, 02.19.2018 02.12.2019 25% on 25% on 25% on (B) 30% on 02.04.2019 02.09.2020 02.08.2021 03.05.2016, and and and 30% on 25% on 25% on 25% on 03.05.2017 02.04.2020 02.09.2021 02.08.2022 and 40% from the 4th quarter of 2017

maximum - (A) 02.12.2021 02.04.2022 02.04.2019 02.09.2023 02.09.2020 02.08.2024 02.08.2021 period for 02.19.2020 exercise of (B) options 03.05.2020

restriction ------period of transfer of shares weighted- average price of each of the following groups of options (price per share): (a) - (A) R$ 10.22 R$ 13.25 R$ 15.40 - (A)R$ 21.71 - R$ 36.21 - outstanding at the beginning (B) R$ 10.16 (B) R$ 21.71 of the fiscal year (b) forfeited ------during the fiscal year (c) exercised - (A) R$ 10.22 - R$ 15.40 - (A)R$ 21.71 - - - during the fiscal (B) R$ 10.16 year (d) expired ------during the fiscal year Fair value of - (A) R$ 4.79 R$ 6.80 R$ 10.34 - (A) - R$ 16.90 - options on the (B) R$ 5.44 R$ 11.17 granting date (B) R$ 11.17 (per option) Potential - 1.09% of the 0.14% of 0.10% of 0.01% of 0.28% of 0.05% of 0.04% of 0.01% of dilution in the capital stock the capital the capital the capital the capital the capital the capital the capital event of on 12.31.2018 stock on stock on stock on stock on stock on stock on stock on exercise of all 12.31.2018 12.31.2018 12.31.2018 12.31.2018 12.31.2018 12.31.2018 12.31.2018 options granted

Stock-based compensation – year ended on 2019

For the year 2019, the 10th grant of the Stock Options and the 1st grant Restricted Shares Plan will no longer be recognized in the Corporation’s results, and, therefore, is not indicated in the table below.

Board of Directors Number of members 8 8 8 8 Number of remunerated members 8 8 8 8 As regards each granting of call 2nd grant 2nd grant 4rd grant 4rd grant options: POCA RESTRICTED POCA RESTRICTED

186

Plan approved in EGM Plan approved in Plan approved in EGM Plan approved in EGM held held on 09.23.15 EGM held on 09.23.15 held on 09.23.15 on 09.23.15 granting date 02.09.2017 02.09.2017 02.07.2019 02.07.2019 number of options granted 1,564,200 (B) 291,500 (B) 121,000 (B) 36,000 (B) period for the options to become 25% on 02.09.2018, 100% 25% on 02.07.2020, 100% exercisable 25% on 02.09.2019, on 02.09.2020 25% on 02.07.2021, on 02.07.2022 25% on 02.09.2020 e 25% on 02.07.2022 e 25% on 02.09.2021 25% on 02.07.2023 maximum period for exercise of 02.09.2023 02.09.2020 02.07.2025 02.07.2022 options restriction period of transfer of shares - - - - weighted-average price of each of the following groups of options (price per share): (a) outstanding at the beginning (B) R$ 19.73 - R$ 38.62 - of the fiscal year (b) forfeited during the fiscal year - - - - (c) exercised during the fiscal year - - - -

(d) expired during the fiscal year - - - - Fair value of options on the granting (B) R$ 10.15 - R$ 19.21 - date (per option) Potential dilution in the event of 0.20% of capital stock 0.04% of capital stock 0.02% of capital stock 0.00% of capital stock on exercise of all options granted on 12.31.2019 on 12.31.2019 on 12.31.2019 12.31.2019 Board of Executive Officers Number of 5 5 5 5 5 5 5 5 members Number of 5 5 5 5 5 5 5 5 remunerated members As regards 11th grant 1st grant 2nd grant 2nd grant 3rd grant 3rd grant 4rd grant 4rd grant each POCA POCA RESTRICTED POCA RESTRICTED POCA RESTRICTED granting of Plan Plan Plan Plan approved Plan approved Plan Plan call options: approved in approved in approved in in EGM held on in EGM held on approved in approved in EGM held on EGM held on EGM held on 09.23.15 09.23.15 EGM held on EGM held on 09.23.15 09.23.15 09.23.15 09.23.15 09.23.15 granting date 02.12.2015 02.04.2016 02.09.2016 02.09.2017 02.08.2018 02.08.2018 02.07.2019 02.07.2019 number of 985,600 744,700 454,025 (A) 77,000 (A) 282,500 49,600 280,000 56,000 (A) options 1,564,200 (B) 291,500 (B) (A) 36,000 (B) granted 121,000 (B) period for the 50% on 25% on 25% on 100% on 25% on 100% on 25% on 100% on options to 02.12.2018 02.04.2017, 02.09.2018, 02.09.2020 02.08.2019, 25% 02.08.2021 02.07.2020, 02.07.2022 become and 25% on 25% on on 25% on exercisable 50% on 02.04.2018, 02.09.2019, 02.08.2020, 02.07.2021, 02.12.2019 25% on 25% on 25% on 25% on 02.04.2019 02.09.2020 02.08.2021 and 02.07.2022 and and 25% on and 25% on 25% on 02.08.2022 25% on 02.04.2020 02.09.2021 02.07.2023 maximum 02.12.2021 02.04.2022 02.09.2023 02.09.2020 02.08.2024 02.08.2021 02.07.2025 02.07.2022 period for exercise of options restriction ------period of transfer of shares weighted- average price of each of the following groups of options (price per share):

187

(a) R$12.04 R$ 15.40 (A)R$ 21.71 - R$ 36.21 - R$ 38.62 - outstanding at the (B) R$ 21.71 beginning of the fiscal year (b) forfeited ------during the fiscal year (c) exercised - R$12.04 R$ 15.40 (A)R$ 21.71 - - - - during the fiscal year (d) expired ------during the fiscal year Fair value of - R$ 6.18 R$ 10.34 (A) R$ 11.17 - R$ 16.90 - R$ 19.21 options on (B) R$ 11.17 the granting date (per option) Potential - 0.14% of the 0.10% of the 0.28% of the 0.05% of the 0.04% of the 0.01% of the 0.06% of the dilution in the capital stock capital stock capital stock capital stock capital stock capital stock capital stock event of on 12.31.2018 on 12.31.2018 on 12.31.2018 on 12.31.2018 on 12.31.2018 on 12.31.2018 on 12.31.2019 exercise of all options granted

Note: The value of the share-based remuneration in the Board of Directors represents contractual grants of the former Chief Executive Officer, received when still a member of the Executive Board.

Stock-based compensation – year ended on 2020

For the year 2020, the 11th grant of the Stock Options and the 2nd grant Restricted Shares Plan will no longer be recognized in the Corporation’s results, and, therefore, is not indicated in the table below.

Board of Directors Number of members 8 8 8 Number of remunerated members 8 8 8 As regards each granting of call 2nd grant 4rd grant 4rd grant options: POCA POCA RESTRICTED Plan approved in EGM held on Plan approved in EGM held on Plan approved in EGM held 09.23.15 09.23.15 on 09.23.15 granting date 02.09.2017 02.07.2019 02.07.2019 number of options granted 1,564,200 (B) 121,000 (B) 36,000 (B) period for the options to become 25% on 02.09.2018, 25% on 02.07.2020, 100% on 02.07.2022 exercisable 25% on 02.09.2019, 25% on 02.07.2021, 25% on 02.09.2020 and 25% on 02.07.2022 and 25% on 02.09.2021 25% on 02.07.2023 maximum period for exercise of 02.09.2023 02.07.2025 02.07.2022 options restriction period of transfer of shares - - - weighted-average price of each of the following groups of options (price per share): (a) outstanding at the beginning (B) R$ 19.73 R$ 38.62 - of the fiscal year

(b) forfeited during the fiscal year - - - (c) exercised during the fiscal year - - -

188

Number of 5 5 5 5 5 5 5 5 members Number of 5 5 5 5 5 5 5 5 remunerated members As regards 1st grant 2nd grant 3rd grant 3rd grant 4rd grant 4rd grant 5rd grant 5rd grant each POCA POCA POCA RESTRICTED POCA RESTRICTED POCA RESTRICTED granting of Plan Plan Plan Plan Plan Plan Plan approved Plan approved call options: approved approved in approved approved in approved approved in in EGM held on in EGM held on in EGM EGM held on in EGM EGM held on in EGM EGM held on 09.23.15 09.23.15 held on 09.23.15 held on 09.23.15 held on 09.23.15 09.23.15 09.23.15 09.23.15 granting date 02.04.2016 02.09.2016 02.08.2018 02.08.2018 02.07.2019 02.07.2019 02.05.2020 02.05.2020 number of 744,700 454,025 (A) 282,500 49,600 280,000 56,000 (A) 299,700 42,300 options (A) granted period for the 25% on 25% on 25% on 100% on 25% on 100% on 25% on 100% on options to 02.04.2017, 02.09.2018, 02.08.2019, 02.08.2021 02.07.2020, 02.07.2022 02.05.2021, 25% 02.05.2023 become 25% on 25% on 25% on 25% on on exercisable 02.04.2018, 02.09.2019, 02.08.2020, 02.07.2021, 02.05.2022, 25% on 25% on 25% on 25% on 25% on 02.04.2019 02.09.2020 02.08.2021 02.07.2022 02.05.2023 and and and and and 25% on 25% on 25% on 25% on 25% on 02.05.2024 02.04.2020 02.09.2021 02.08.2022 02.07.2023

maximum 02.04.2022 02.09.2023 02.08.2024 02.08.2021 02.07.2025 02.07.2022 02.05.2026 02.05.2023 period for exercise of options restriction ------period of transfer of shares weighted- average price of each of the following groups of options (price per share): (a) R$ 15.40 (A)R$ 21.71 R$ 36.21 - R$ 38.62 - R$ 57.70 - outstanding at the beginning of the fiscal year (b) forfeited ------during the fiscal year (c) exercised R$ 15.40 (A)R$ 21.71 ------during the fiscal year (d) expired ------during the fiscal year Fair value of R$ 10.34 (A) R$ 11.17 R$ 16.90 - R$ 19.21 - R$ 24.45 - options on the granting date (per option) Potential 0.09% of 0.06% of the 0.04% of 0.01% of the 0.04% of 0.01% of the 0.04% of the 0.01% of the dilution in the the capital capital stock the capital capital stock the capital capital stock capital stock capital stock event of stock 12.31.2020 stock 12.31.2020 stock 12.31.2020 12.31.2020 12.31.2020 exercise of all 12.31.2020 12.31.2020 12.31.2020 options granted

Stock-based compensation – current year (2021)

189

For the year 2021, the 1st grant of the Stock Options and the 3rd grant Restricted Shares Plan will no longer be recognized in the Corporation’s results, and, therefore, is not indicated in the table below.

(b) forfeited during the fiscal year - - - (c) exercised during the fiscal year - - -

(d) expired during the fiscal year - - - Fair value of options on the granting (B) R$ 10.15 R$ 19.21 - date (per option) Potential dilution in the event of 0.20% of the capital stock on 0.02% of the capital stock on 0.01% of the capital stock on exercise of all options granted 12.31.2020 12.31.2020 12.31.2020 Board of Executive Officers Number of 5 5 5 5 5 5 5 members Number of 5 5 5 5 5 5 5 remunerated members As regards 2nd grant 3rd grant 4rd grant 4rd grant 5rd grant 5rd grant 6rd grant each granting POCA POCA POCA RESTRICTED POCA RESTRICTED RESTRICTED of call options: Plan Plan approved Plan approved Plan Plan approved Plan Plan approved approved in in EGM held on in EGM held on approved in in EGM held on approved in in EGM held on EGM held on 09.23.15 09.23.15 EGM held on 09.23.15 EGM held on 09.23.15 09.23.15 09.23.15 09.23.15 granting date 02.09.2017 02.08.2018 02.07.2019 02.07.2019 02.05.2020 02.05.2020 02.11.2021 number of 454,025 (A) 282,500 280,000 (A) 56,000 (A) 299,700 42,300 1,075,100 options granted period for the 25% on 25% on 25% on 100% on 25% on 100% on 100% on options to 02.09.2018, 02.08.2019, 25% 02.07.2020, 25% 02.07.2022 02.05.2021, 25% 02.05.2023 02.11.2024 become 25% on on on on exercisable 02.09.2019, 02.08.2020, 02.07.2021, 02.05.2022, 25% on 25% on 25% on 25% on 02.09.2020 02.08.2021 and 02.07.2022 and 02.05.2023 e and 25% on 25% on 25% on 25% on 02.08.2022 02.07.2023 02.05.2024 02.09.2021 maximum 02.09.2023 02.08.2024 02.07.2025 02.07.2022 02.05.2026 02.05.2023 02.11.2024 period for exercise of options restriction ------period of transfer of shares weighted- average price

190

of each of the following groups of options (price per share): (a) (A) R$ 19.73 R$ 32.91 R$ 38.62 - R$ 57.70 - - outstanding at the beginning of the fiscal year (b) forfeited ------during the fiscal year (c) exercised (A) R$ 19.73 R$ 32.91 R$ 38.62 - - - - during the fiscal year (d) expired ------during the fiscal year Fair value of (A) R$ 10.15 R$ 15.36 R$ 19.21 - - - - options on the granting date (per option) Potential 0.06% of the 0.04% of the 0.04% of the 0.01% of the 0.04% of the 0.01% of the 0.13% of the dilution in the capital stock capital stock capital stock capital stock capital stock capital stock capital stock event of on 02.29.2021 on 02.29.2021 on 02.29.2021 on 02.29.2021 on 02.29.2021 on 02.29.2021 on 02.29.2021 exercise of all options granted

Note: The value of the share-based remuneration in the Board of Directors represents contractual grants of the former Chief Executive Officer, received when still a member of the Executive Board.

13.6 As regards the outstanding options of the members of the Statutory Board of Executive Officers at the end of the last fiscal year:

Board of Directors Board of Executive Officers Number of Members 1 5 Number of Remunerated Members 1 5 As regards to the options not yet exercisable number 529,980 609,284

period for the options to become exercisable See item 13.5 above See item 13.5 above maximum period for exercise of options Contractual: 2nd grant: 02/09/2023 02/09/2023 3rd grant: 02/08/2024 4th grant: 02/07/2025 Contractual (new): 5th grant: 02/05/2026 02/07/2025 restriction period of transfer of shares No restriction No restriction weighted-average strike price R$ 23.33 R$ 45.02 fair value of options on the last day of the fiscal year See item 13.5 above See item 13.5 above As regards to exercisable options number 1,290,465 362,072 maximum period for exercise of options Contractual (new): 1st grant: 02/04/2022 02/09/2023 2nd grant: 02/09/2023 3rd grant: 02/08/2024 4th grant: 02/07/2025 restriction period of transfer of shares No restriction No restriction weighted-average strike price R$ 19.74 R$ 26.44 fair value of options on the last day of the fiscal year See item 13.5 above See item 13.5 above fair value of total options on the last day of the fiscal year R$ 13,737,432.50 R$ 4,826,080.70

13.7 Options exercised and shares delivered relating to the stock-based compensation payable to the members of the Statutory Board of Executive Officers

In the years 2018, 2019 and 2020, options were exercised by the Board of Executive Officers and the Board of Directors as shown below.

191

Board of Directors Board of Executive Officers Year 2018 2019 2020 2018 2019 2020

Number of 8 8 8 6 6 6 Members Number of 0 1 1 6 5 5 exercising members As regards to options exercised number of shares 0 783,750 0 3,898,825 749,351 220,221

weighted- 0 R$ 9.24 0 R$ 11.16 R$ 14.74 R$ 18.81 average strike price total amount of 0 R$ 32,047,537. 0 R$ 88,470,814.5 R$ 21,817,693.60 R$ 6,194,063.40 the difference 50 0 between the strike price and the market price of the shares relating to the options exercised As regards to shares delivered number of shares NA NA NA NA NA NA weighted- NA NA NA NA NA NA average acquisition price total amount of NA NA NA NA NA NA the difference between the acquisition price and the market price of the shares acquired

13.8 Summary description of the information necessary for the understanding of the data disclosed in items 13.6 to 13.8, as well as the explanation on the pricing method of shares and options, indicating, at least: (a) pricing model; (b) data and assumptions used in the pricing model, including the weighted average share price, exercise price, expected volatility, option time, expected dividends and interest rate free of risk; (c) method used and assumptions made to incorporate the effects of expected antecipated exercise; (d) way of determining the expected volatility; (e) if any other characteristic of the option was incorporated into the measurement of fair value

Stock Option Plan

Assumptions for measuring the fair value of stock options

The fair value of granted stock options is calculated on the respective grant date based on the Black&Scholes model. For determining fair value, the Company adopted assumptions as: (a) Option exercise value: corresponds to the weighted average rate over the last 30 stock trading sessions of Lojas Renner S.A before the grant date. (b) The Company’s stock price volatility: corresponds to the weighting of the trading history of the Company’s stock.

192

(c) Risk-free interest rate: the Company used the Interbank Deposit Certificate (CDI) available on the grant date and projected for the maximum grace period of the option. (d) Expected dividend: this percentage corresponds to the payment of dividends per share in relation to the market value of the Company’s shares on the grant date. (e) Vesting period: represents the maximum period for beneficiaries to exercise their options.

The summary chart with information used for determining the fair values of grants is as follows:

Fair value Expected Stock Risk-free on grant Option plans Exercise Vesting dividend price interest- date per (Approved date) Grants value Grant date period (%) volatility rate share (R$)

1st plan - May/05 Contractual grant 9.23 3/5/14 - 3.72% 26.77% 11.89% 4.94

1st plan - May/05 11th grant 12.04 2/12/15 - 1.80% 27.82% 11.77% 6.18

2nd plan - setember/05 1st grant 14.00 2/4/16 0.09 1.67% 40.69% 14.38% 9.40

2nd plan - setember/05 2nd grant 19.73 2/9/17 1.11 1.52% 34.03% 14.38% 10.15

2nd plan - setember/05 Contractual grant 19.73 2/9/17 1.11 1.52% 34.03% 14.38% 10.15

2nd plan - setember/05 3nd grant 32.91 2/8/18 2.11 1.12% 32.54% 14.38% 15.36

2nd plan - setember/05 4th grant 38.62 2/7/19 3.10 0.97% 33.18% 8.26% 19.21

2nd plan - setember/05 Contractual grant 38.62 2/7/19 3.10 0.97% 33.18% 8.26% 19.21

2nd plan - setember/05 5th grant 57.72 2/5/20 3.10 0.97% 33.18% 6.04% 24.45

Share Purchase Option Plan Position in 2020, 2019 and 2018:

Position of grants (Quantity) Grace Grace Grace Grace period period period period

Exercise Grant 1st 2nd 3rd 4rd On On On Grants amount date tranche tranche tranche tranche 12/31/20 12/31/19 12/31/18 - - 713 Contractual grant 9.23 3/5/14 3/4/16 3/4/17 9/30/17 - - - 425 11th grant 12.04 2/12/15 2/11/18 2/11/19 - - Subtotal - - 1,138 1st Plan

1st grant 14.00 2/4/16 2/3/17 2/3/18 2/3/19 2/3/20 62 177 337

2nd grant 19.73 2/9/17 2/9/18 2/9/19 2/9/20 2/8/21 158 234 328

Contractual grant 19.73 2/9/17 2/9/18 2/9/19 2/9/20 2/8/21 1,721 1,721 1,564

3nd grant 32.91 2/8/18 2/8/19 2/8/20 2/9/20 2/8/21 235 265 283 Contractual grant 38.62 2/7/19 2/7/20 2/6/21 2/6/22 2/6/23 133 133 -

4th grant 38.62 2/7/19 2/7/20 2/6/21 2/6/22 2/6/23 258 299 -

5th grant 57.70 2/5/20 2/4/21 2/4/22 2/6/23 2/6/24 268 299 - Subtotal 2nd Plan 2,835 3,128 2,511 Total 2,835 3,128 3,648

For the years ended December 31, 2020, 2019 and 2018, the Company recognized as spending option plan granted to Managements, R$ 11,101 thousand, R$ 9,919 thousand and R$ 9,501 thousand, respectively.

Considering the exercise of 2,567 thousand options in the money in 2020, the exercise of 2,829 thousand options in the money in 2019 and 3,648 thousand options in the money in 2018, we present below the effects on the Company's equity value per share and the related percentage reduction in the ownership interest of the current stockholders on December 31, 2020, 2019 and 2018:

12/31/20 12/31/19 12/31/18

5,501,316 4,704,614 3,954,512 Equity 796,170 795,558 720,024 Number of shares - thousand

6.91 5.91 5.49 Book value per share - R$

193

5,562,091 4,771,069 4,023,860 Equity, considering the in the Money options exercised 798,737 798,387 723,672 Number of shares, considering the in the Money options exercised

Book value of the share, considering the in the Money options exercised 6.96 5.98 5.56

% of decrease in the ownership interest of current stockholders, considering the in the Money options 0.32% 0.35% 0.50% exercised

Restricted Shares Award

Assumptions for measuring the fair value of restricted shares

The fair value of the restricted shares corresponds to the closing share price (“LREN3”) on the grant date.

Restricted Shares Position in 2020, 2019 and 2018:

Grant Grace period 12/31/2020 12/31/2019 12/31/2018 Grants date 1st tranche - - 102 1st grant 02/04/16 02/03/19 - 77 77 2nd grant 02/09/17 02/09/20 - 321 292 Contractual grant 02/09/17 02/09/20 45 56 50 3nd grant 02/08/18 02/07/21 Contractual grant 02/07/19 02/06/22 40 40 -

4th grant 02/07/19 02/06/22 49 60 -

5th grant 02/05/20 02/04/23 36 - - 170 554 521

For the years ended December 31, 2020, 2019 and 2018, the Company recognized as spending restricted share plan granted to Managements, R$ 2,528 thousand, R$ 3,828 thousand and R$ 3,530 thousand, respectively.

13.9 Information on the number of shares, quotas and any other securities convertible into shares held by body:

Issuer: Lojas Renner’s Shares – LREN3;

Date: 12/31/2020

Board of Directors: 5,702,435 common shares;

Board of Executive Officers: 787,776 common shares;

Technical and Consultative Bodies: 200,000 common shares

Fiscal Council: 0 common shares;

Treasury: 3,158,685 common shares.

13.10 Information regarding private pension plans granted to the members of the Board of Directors and Statutory Board of Executive Officers: a. board

194

c. name of the plan

The Corporation does not grant to the members of the Board of Directors, People Committee, Board of Executive Officers and Fiscal Council a private pension or retirement plan to guarantee supplementary benefits to those of the Brazilian social security. d. number of management members who are qualified for retirement

The Corporation does not grant to the members of the Board of Directors, People Committee, Board of Executive Officers and Fiscal Council a private pension or retirement plan to guarantee supplementary benefits to those of the Brazilian social security. f. total amount of contributions accumulated under the retirement plan until the end of the latest fiscal year, excluding the direct contributions made by the management members

The Corporation does not grant to the members of the Board of Directors, People Committee, Board of Executive Officers and Fiscal Council a private pension or retirement plan to guarantee supplementary benefits to those of the Brazilian social security. g. total amount accumulated on contributions made during the latest fiscal year, discounted the direct contributions made by the management members

The Corporation does not grant to the members of the Board of Directors, People Committee, Board of Executive Officers and Fiscal Council a private pension or retirement plan to guarantee supplementary benefits to those of the Brazilian social security. h. allowance of anticipated redemption and condition for that, if any

13.11 Maximum, Minimum and Average Individual Compensation of the Board of Directors, Statutory Board of Executive Officers and Fiscal Council

Statutory Board of Executive Officers (*) Board of Directors Fiscal Council

2020 2019 2018 2020 2019 2018 2020 2019 2018

Number of Members (a) 5.00 5.60 6.33 8.00 7.70 8.00 3.00 3.00 3.00 Number of Remunarated 5.00 5.60 6.33 8.00 7.70 7.00 3.00 3.00 3.00 Members (a)

Higher Annual Individual Compensation 4,021,246.54 4,028,573.56 12,515,208.11 14,903,025.74 11,744,796.61 912,000.00 252,281.66 196,800.00 230,400.00 (b)

Lowest Annual Individual Compensation 2,497,765.79 2,225,155.87 2,523,002.47 524,393.32 533,000.00 467,400.00 122,836.66 196,800.00 172,800.00 (b)

Average Annual Individual 3,156,234.87 3,765,683.27 4,560,016.15 2,415,639.45 2,117,791.77 584,738.57 210,418.33 219,043.33 192,000.00 Compensation

195

Observation

12/31/2020 Note: (a) – In order to determine the number of members of each organ, the total number in each month was added and divided by 12 (simple average). (b) – In the year of 2020, the Fiscal Council, had two changes of members with the smaller compensation, so it was considered the member with more months in the year. All the compensations presented in the table in item 13.2 were considered to reach the highest, lowest and medium values for individual compensation. In the total amount of the compensation it is included the stock option-based compensation that in the Board of Directors represents contractual grants of the former Chief Executive Officer, received when still a member of the Executive Board. For the Statutory Board of Executive Officers, regarding the compensation based upon shares, the result of the Black&Scholes method may be deduced as the present value of the potential future earnings, in case the premises assumed turn into facts. Therefore, it is important to mention that the amount resulted does not represent profits effectively exercised by the officers in the reported fiscal year, considering that the premises of a stock option plan is that the officers may not become entitled to obtaining any kind of earning. The referred risks are related to dismissals, which may terminate the granted stock option, and mainly to share price fluctuation during the granted stock option plan, considering that eventual depreciation over the exercise price neutralizes the earnings.

12/31/2019 Note: (a) – In order to determine the number of members of each organ, the total number in each month was added and divided by 12 (simple average). (b) – Historically, the Company had the highest remuneration only for those who had exercised their remunerated functions in this body in the 12 months of the year. However, when calculating the year of 2020, the Company, for a better comparability between the years 2019/2020 by the shareholders, is restating the highest remuneration of the Board of Directors of the year 2019, even if the member has not completed 12 months in the paid function. All the compensations presented in the table in item 13.2 were considered to reach the highest, lowest and medium values for individual compensation. In the total amount of the compensation it is included the stock option-based compensation that in the Board of Directors represents contractual grants of the former Chief Executive Officer, received when still a member of the Executive Board. For the Statutory Board of Executive Officers, regarding the compensation based upon shares, the result of the Black&Scholes method may be deduced as the present value of the potential future earnings, in case the premises assumed turn into facts. Therefore, it is important to mention that the amount resulted does not represent profits effectively exercised by the officers in the reported fiscal year, considering that the premises of a stock option plan is that the officers may not become entitled to obtaining any kind of earning. The referred risks are related to dismissals, which may terminate the granted stock option, and mainly to share price fluctuation during the granted stock option plan, considering that eventual depreciation over the exercise price neutralizes the earnings.

12/31/2018 Note: (a) – In order to determine the number of members of each organ, the total number in each month was added and divided by 12 (simple average). (b) – It was excluded the compensation of the members that did not exercised their position in the 12 months of the year. In 2019, in the Board of Directors and the Fiscal Council, the members with the highest remuneration did not complete 12 months in that body. Thus, they are not considered this year as the highest remuneration, but are included in the average annual remuneration. All the compensations presented in the table in item 13.2 (*) were considered to reach the highest, lowest and medium values for individual compensation. For the Statutory Board of Executive Officers, regarding the compensation based upon shares, the result of the Black&Scholes method may be deduced as the present value of the potential future earnings, in case the premises assumed turn into facts. Therefore, it is important to mention that the amount resulted does not represent profits effectively exercised by the officers in the reported fiscal year, considering that the premises of a stock option plan is that the officers may not become entitled to obtaining any kind of earning. The referred risks are related to dismissals, which may terminate the granted stock option, and mainly to share price fluctuation during the granted stock option plan, considering that eventual depreciation over the exercise price neutralizes the earnings.

13.12 Mechanisms of compensation or indemnification methods for the management, in the event of removal from position or retirement There is no provision in any agreement, insurance policy or other compensation or indemnification instruments for the members of the Board of Directors, its Committees and Fiscal Council in the event of removal from position or retirement.

13.13 Percentage rate of the overall compensation payable to the Management and to the Fiscal Council, who are parties related to the controlling shareholders The Corporation does not have a controlling shareholder.

196

13.14. The compensation payable to the Management or to the Fiscal Council, grouped by bodies, for any reason other than the position held by such members The members of the Board of Directors, People Committee, Board of Executive Officers and Fiscal Council do not receive any compensation beyond the one regarding their function in the Company.

13.15 The compensation amounts recorded in the results of the issuer’s direct or indirect controlling shareholders, companies under common control and subsidiaries, such as the compensation payable to the Management or to the Fiscal Council The members of the Board of Directors, People Committee and Fiscal Council do not receive any compensation from the issuer’s direct or indirect controlling shareholders, companies under common control, and subsidiaries. One Director and one former Director (as Director) received pro-labor from one of the Company's subsidiaries, but the amount paid to these Officers by the Company was reduced.

13.16 Other information relevant

All members of the Board of Directors, Board of Executive Officers and Fiscal Council are covered by Insurance Against Civil Liability (D&O), which the maximum limit of indemnification amounts to R$ 60.0 million and that the liability insurance premium for directors was R$ 150 thousand (based on July 2020). Such insurance is renewed in an annual basis, in July of each year, without deductible, and its scope has worldwide coverage, except for claims related to environmental pollution, United States and Canada. With policy based on claims with notice, in which the insurance object is the payment of indemnification due to insured individuals resulting from a damaging act practiced by them during the insurance term or in a date not previous to the coverage retroactive date, by which such insured individuals are held responsible for damages repair, decided by legal, arbitration judgment or agreement previously approved by insurer.

197

ATTACHMENT X

ANNUAL AND EXTRAORDINARY GENERAL MEETING

CALL NOTICE

The Shareholders are hereby convened to participate in the Annual General Meeting to be held on April 29, 2021 at 1:00 p.m. exclusively in digital format, through an electronic system, without prejudice to the participation by the distance voting ballot, in order to deliberate on the following AGENDA:

1. examine, discuss and vote on the management accounts and financial statements for the fiscal year ending December 31, 2020; 2. examine, discuss and vote on the proposal for the allocation of net income for the fiscal year and the distribution of dividends; 3. establish the number of members on the Board of Directors; 4. elect the members of the Board of Directors; 5. establish the aggregate compensation of the members of Management; 6. establish the number of members of the Fiscal Council; 7. elect the members of the Fiscal Council; and 8. establish the compensation of the members of the Fiscal Council.

General Information: 1. The Company wishes to inform that it will use the remote voting process pursuant to CVM Instruction 481/2009. Should the shareholder so wish, he may opt to exercise his voting rights through the remote voting system pursuant to the said instruction by sending the corresponding voting list through his respective custody agent, securities depositary bank or directly to the Company in accordance with the guidance in the Manual for Participation in Shareholders’ Meetings – Management Proposal.

2. In addition, shareholders by themselves, by attorneys-in-fact or legal representatives, wishing to participate remotely through the virtual meetings platform ALFM Easy Voting (“Platform”) should access the pre-registration link (https://plataforma.alfm.adv.br/ALFM/acionista.wpconsentimento.aspx?CtxW0jdnQS4JAgUx1hIBxa4PbZ2fb5QK1fz6/Hx8u7uQ1t FsJtsxF+XTqxyZNf2p) at the latest by April 27, 2021 (inclusive), completing all information requested and realizing the upload of the documents indicated in the Manual for Participation in Shareholders Meeting. The shareholders, attorneys-in-fact or legal representatives who do not register within the above deadline will not be able to participate in the AGM through the digital platform.

3. Pursuant to CVM Instruction 165 of December 11, 1991, as amended by CVM Instruction 282 of June 26, 1998, we hereby inform that the minimum percentage for requesting the adoption of the multiple voting procedure is 5% (five percent) of the voting capital.

4. The shareholders shall find all the necessary information for the better understanding of the aforementioned matters in the “Manual for Shareholders’ Participation – Management Proposal –Annual General Meeting” which can be accessed through the Company’ website www.lojasrenner.com.br/ri and the CVM website www.cvm.gov.br. The Company has an e- mail [email protected] to access the Corporate Governance Secretary, which is equipped to clarify any questions with respect to the Meeting.

Porto Alegre, RS, March 29, 2021.

José Galló Chairman of the Board of Directors

198