RECENT PERFORMANCE AND OUTLOOK

Citibank16th Annual Latin America Conference

March, 2008

2

Agenda

2007 Performance

Main initiatives

2008 Outlook

3

2007 Results: Highlights

Consolidation of the Pão de Açúcar banner performance, posting strong same store sales growth since

2006;

Gross margin improvement: assortment review, better negotiations with suppliers and Shrinkage reduction

program

Non-food: assortment review, store layout, global sourcing, marketing, processes and technology

improvement;

Expenses Reduction (70 bps YoY) generated EBITDA margin improvement;

Recovery of Sendas performance as of 3Q07, due to strict expenses control and clustering, adjustments in

promotion policies, proper communication with targeted public.

FIC (Financeira Itaú CBD): break-even achieved in December 07, with a 12.5% share of Group´s sales;

Reported Net Income of R$ 210.9 million in 2007, 146.6% up on 2006. In the 4Q07, Net Income amounted

to R$ 112.7 million, 306.4% year -on-year.

4

New management initiatives: “Back to basics”

Main Focus

Sales Pillars: assortment, pricing, communication and services

Expenses Committees:

- Marketing

- Personnel

- Store maintenance

- other

Extra

Sendas Distribuidora

Non-food

New Management Model

emphasis on Supply Chain & IT;

Integration: Commercial / Operational & Marketing areas;

Agility, empowerment and focus.

around 70% of total sales

5

New Management Model

6

New Corporate Structure

Board of Directors

CEOClaudio Galeazzi

Commercial &Operations VP

J. R. Tambasco

Supply Chain &IT VP

Hugo Bethlem

Finance/Administrative VP

Enéas Pestana

Real EstateCaio Mattar

Human Resources

Claudio Galeazzi

FICFinanceiraItaú CBD

ASSAI

7

Main Iniciatives: Fast growing segments

Complementary to the current existing formats

Better understanding of customers needs and demands

Distinct groups of customers

Extra Extra FFáácilcil Extra Extra PertoPerto AssaiAssai((AtacarejoAtacarejo))

Proposed ValueProposed ValueProposed Value

Target publicTarget publicTarget public

AssortmentAssortmentAssortment

Sales areaSales areaSales area

Pleasant and cozy food supermarket with a modern non-food solution

Proximity store with convenience assortment.Neighborhood andpassage stores.

Wholesale + Retail

A, B & C B & C B2B & C, D

1500 m2 to 4000 m2150 - 250 m2 More than 2000 m2

Like in Extra-hyper, greatnon-food participation(20,000 itens)

Essentially food and opportunities in general merchandise

Essentially food. 20/80 of each category (3,000 itens)

Purchase Purchase Consortium Consortium

B2B (enter new markets)

Partners

n/a

Essentially food and opportunities in non-food

8

Recent Performance

9

Sales Performance

Recent Performance:Non-food presented strong SSS in January and February due to improvement in electronics and general merchandise

performances;

Extra Fácil, Extra Perto and Extra.com banners presented expressive growth;

Sendas Distribuidora: important recovery from previous periods.

Pão de Açúcar and CompreBem performed above the Company’s average.

Same Store Sales include only stores with at least 12 months of operation

Accumulated

Total StoresSame Stores

2007 7.2%2.8%

16.4%

4.5%6.2%

9.7%

3.2%

7.4% 6.5%3.6%

7.3%

14.6% 15.8%12.2%

3.4%5.7% 5.4%

-1.9%

5.4%3.5%

1.3%3.2%1.0%

4.5%5.7%

1.7%

7.6%4.2%

2.7%0.4%

Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 *Nov-07 Dec-07 Jan-08 Feb-08

z

2008 16.1%5.4%

* As of November 2007 the "total sales" concept includes by the Assai stores.

10

Gross Profit and Gross Margin Performance

Highlights:

The price revision and improved competitiveness policy began as of the 2H06 (entire year in 2007);

Shrinkage Reduction Campaign contributed to the better gross margin;

4Q07 reflected the impact of Assai, with margins of 14.7%. The gross margin without Assai would have been of 28.3%.

1,091 1,197

3,917 4,178

27.7% 27.7%28.2% 28.0%

4Q06 4Q07 2006 2007

Gross Profit (R$ million) andGross Margin (%)

. %

.8

76

%9

% of Net Sales

11

Operating Expenses Performance *

* Expenses figures refer to negative numbers** Operating expenses before taxes and charges

Operating Expenses (R$ million) andExpenses/Sales (%) **

843

2,946 3,053

20.5%21.2%

19.5%21.3%

4Q06 4Q07 2006 2007

666 702

141174

840

2.419

527

2.553

500

Selling Expenses

G&A expenses

Highlights:

In 2007, operating expenses dropped by 70 bps (40 bps over pro-forma figure);

In the 4Q07, the reduction was even more apparent: 180 bps;

G&A expenses down by 19.1% in 4Q07 and 5.1% in 2007 (or 11.2% and 1.9 in pro-forma figures).

% of Net Sales

3.6%

0.3%

12

EBITDA performance and EBITDA Margin

Highlights:Annual EBITDA moved up 15.7% over 2006, even though the gross margin narrowed by 20bps, mainly due to greater control over expenses in the period;

The 4Q07 EBITDA margin stood at 7.5%, 170 bps wider than in 4Q06 and the highest level of the year.

229 325

886 1.026

5.8%7.5% 6.4% 6.9%

4Q06 4Q07 2006 2007

EBITDA (R$ million) andEBITDA Margin (%)

.7%

421%

15

.

% of Net Sales

13

Historical performance

EBITDA Margin

7.9%

7.2%

6.6%6.3%

6.6% 6.4%

7.5%

6.8%

1Q 2Q 3Q 4Q

2006 2007

Improvement due to:• food assortment review• lower shrinkage level

Gross Margin

29.1%29.7%

27.7%28.0%

28.7%

27.7%28.1%27.8%

1Q 2Q 3Q 4Q

2006 2007

Improvement due to:•lower SG&A expenses

14

“Shrinkage Reduction” Campaign

Jan/07(% Gross Sales)

2007(% Gross Sales)

2.15

1.8Savings:

more than R$ 50 million

15

FIC performance

Equity Income (R$ million)

4Q06 4Q07 2006 2007

(11.3)(2.3)

(53.2)

(28.9)

Highlights:

4Q07 equity income was negative by only R$ 2.3 million, versus a negative R$ 11.3 million in 4Q06 and a

negative R$ 9.9 million in the previous quarter;

FIC (Financeira Itaú CBD) reached the break-even point in December;

Perspective of positive results from 2008 on;

The client portofolio closed the year at 5.7 million, 12.6% up on 2006;

-79.5%

-45.6%

16

FIC Outlook 2008

2008 will be the first year of profitability

Growth in the Private Label card activation levels reinforcing new aggregated benefits:

Exclusive discounts for card holders;Migration from private label cards to MasterCard co-branded cards for heavy and good users (“PL Embandeirado”);Different and better terms of payment (# of installments, lower interest rates); Database marketing initiatives;Reinitiating co-branded cards sales;Incentives and training programs for employees

Evolution in the penetration of Extended Warranty and Insurances

17

FIC – Financeira Itaú CBD

Store Units 545

2006 2007 ΔClients (thousand) 5,093 5,694 12%

Private Label 3,493 3,997Co-Branded 519 595CDC (Consumer Loan) 91 247Extended Guarantee 863 640Personal Loanl

127 216

Receivables R$ (million) 896 1,345 50%

Net Revenue R$ (million) 466.0

Equity Income R$ (million) (53.2) (28.9) 46%

Share in sales 12.5%

340

12.5%

286.0 63%

18

Sendas Distribuidora Performance

Gross Profit (R$ million) and Gross Margin (%)

4Q06 4Q07 2006 2007

Operating Expenses (R$ million)and Expenses/Sales (%)*

EBITDA (R$ million) and EBITDA Margin (%)

4Q06 4Q07 2006 20074Q06 4Q07 2006 2007

28.2% 27.2%

26.7% 26.4%

21.6% 19.6%

22.7% 22.0%

5.8% 6.6%

3.1% 3.4%

* Operating expenses before taxes and charges

Highlights:Better balance between sales and profitability

Gross margin was 30 bps lower YoY (100 bps in 4Q07)

Operating expenses as a percentage of net sales dropped 70 bps in 2007 and 200 bps in 4Q07 due to:

• in-store productivity programs;

• lower expenses from special offers;

• comittee to control store-related expenses

6.6% EBITDA Margin in 4Q is the highest since the begining of Sendas operation.

% of Net Sales % of Net Sales % of Net Sales

19

Sendas Distribuidora

Assortment: change in the mix of products (more related to customers purchase power) creating

different clusters;

Pricing: merchandise display and better balance between promotions and regular prices

Marketing: higher differentiation based on the clusters

‘Cash outflow’ Committee: reduction in operating expenses;

Working Capital: lower inventory levels and better layout management (head-offices moved to the

Distribution Center)

Results:

Higher specialization & agility

More integration between Operational & Commercial areas

Improvement in EBITDA margins (higher gross margin and lower expenses)

20

Net Income and Net Margin performance

Net Income (R$ million) andNet Margin(%)

113

28

85

211

2.6% 0.6% 1.4%

0.7%

4Q06 4Q07 2006 2007

Highlights:Grupo Pão de Açúcar posted an annual net income of R$ 210.9 million, 146.6% up on 2006;

Net income totaled R$ 112.7 million in 4Q07, 306.4% up year-on-year.

306.4%

146.6%% of Net Sales

21

210.9 28.9 53.3

101.0 394.1

Equi

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Goo

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Rep

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Main effects to Cash earnings consolidation(net of Income Tax)

Cash Earnings

Non-cash impacts

22

2007 Capex

37 new stores + 14 Assai:08 Extra hypermarkets*04 CompreBem +1 Rossi01 Pão de Açúcar13 Extra Fácil6 Extra Perto + 4 RossiAcquisition of 14 Assai stores1 new Assai store

9.9% growth of sales area

Dec2007

153 91178 42

1,338,329 m2

575 62 19 15 15

Stores by format

261.5471.1

182.6

181.1292.4

215.6120.8

112.8

2006 2007

Capex(R$ million)

Openings Acquisitions Renovations Infrastructure

980.6857.3

* One supermarket converted into hypermarket.

23

6 stores 9 stores3 stores 2 stores

2008 Capex: Focus on Conversions

24

Reviewed Organic Growth: we are estimating the opening of 1 hypermarket, 6 Pão de Açúcar stores, 2 Comprebem stores, 1 Extra Perto store and 80 Extra Fácil stores.

2008 Openings

OPENINGS PER FORMAT(not including conversions)

5 73 69 3

115 1

104

13 80

91

51

21

0

20

40

60

80

100

2006 2007 2008EXTRA PÃO DE AÇÚCAR COMPREBEM / SENDAS EXTRA PERTO ASSAI EXTRA FÁC

15

25

Non-Food Challenges

26

Extra.com

R$ billion sales

in 2010

33% of the sales in 2010 (TECWord, Home, Entertainment,

Drugstores and Gas Stations)

Important challenges

Expand non-food Extra Perto

(25% non-food)

Restructuring

Extra Eletro

Global Sourcing

27

Non-food

• New organization structure team and processes/logistics

• Improve products exposure and Assortment (Global Sourcing)

• New Layout Concept: “Solutions”– ‘Home World’; ‘Entertainment World’ and Textile/Sports

• Review of consumer credit strategy

• Assisted sales and services

• Private Label: Develop a brand for each non-food segment

• General merchandise, textiles and home appliances & electronics account for 25% of total sales

2010 GOAL: 30% of total sales

2010 GOAL: US$ 300 MM

28

... in four enabling areas

SourcingSourcing

Visual merchandising

Visual merchandising

Processes, tools and personnel

Processes, tools and personnel

Assisted sales and service

Assisted sales and serviceAssortmentAssortment Pricing

and creditPricing

and credit

FICFICPrivate-label brands

Private-label brands

Focus on changing consumer perceptions: ...

• Fashion content• Coordinated

collections• Perception of high

quality• Wider assortment in

drugstores and gas stations

• Select and strengthen one brand in each segment

• In Brazil: effective partnering with key suppliers

• International: – Competitive, differentiated

products (quality and packaging)

– Synergies with Casino– Eliminate middlemen– Continuous provisioning

• Integrate non-food into food areas

• Integration of business lines (MundoCasa, MundoAutomotivo, etc.)

• Creating shopping experience and stimulating purchase

• Product sampling stations

• Teams and business processes characterized by agility, discipline and creativity

• Technical training with fashion content

• Review supply model for stores outside São Paulo

• Improved credit terms and approval procedures, especially for Eletro

• Visible and efficient credit product

• Adjustment in price positioning

• Interpersonal contact

• Sales approach• Specialization• Differentiated

services

CommunicationsCommunications

• Increase media frequency, with supplier funding

• Improve in-store product information

• Fewer restrictions on credit approvals

• Competitive payment terms and conditions

• Turn credit into a viable product

The Non-Food Division has revised the strategic objectives for its five business lines –Household, Textile-Sports-Children’s (TEC), Entertainment, Automotive and Drugstores

29

Extra.com.br

2006– Technology: new system to support the operation – Logistics: New Distribution Center

2007– Exclusive and differentiated assortment– Extensive change in website layout and visual communication– Strengthen marketing– Wider range of payments

Results– 1.1% of total sales– Sales performance:

• 2006: 167% growth• 2007: 90% growth

2010 GOAL: 4.5% of total sales

30

Appendix: Company Profile

31

CBD Highlights

Scale/Negotiation Power

Brand Positioning /Segmentation

Differentials

Infra-structure

Strong cash generation

Largest retailer in Brazil, with R$ 17.6 billion gross sales in 2007

Multiformat structure/ well located stores in the main marketsof Brazil

Assortment, store environment, services and consumer knowledge

Largest distribution chain of the country

One of the highest EBITDA margin among its peers and a solid capital structure

32

Market Share 2007 (1)

– Formal Sector: R$ 131,4 billion (estimated figure) (1)

– Informal Sector accounts for approximately 50% of total food consumption

– Fragmented Market: small/medium chains

– Lack of department stores: opportunities for hypermarkets

Food retailing Sector

14.7%

14.3%

11.4%

1.4%

1.2%

56.9%

Carrefour GPA Wal-Mart

Gbarbosa Zaffari Others

5 largest10 largest20 largest

(1)Source: Brazilian Supermarket Association

200743.1%48.3%54,6%

33

Growth since the IPO (1995-2007)

218

575

1995 2007

2,912

1995

271

1,337

1995 2007

7.2%

14.3%

1995 2006

2007

17,643

Number of Stores Total Sales (million)

Market share (%)Sales Area m2 (thousand)

34

LT drivers to increase returns

27.416.5

2006 2010

Gross Sales(R$ bn)

15.010.0

2006 2010

ROIC (%)

Organic Growth Organic Growth Strengthen Strengthen CompetitivenessCompetitiveness

Increase Assets turnover*

Improve operational Improve operational efficiencyefficiency

Increase Increase ee--commerce commerce

salessales

Increase Increase nonnon--food food

salessales

Recruitment, Recruitment, Career plan and Career plan and

retentionretentionStockStock OptionOption

GPAGPA

*Net Sales/ Capital Employed

Double Double Private Label Private Label participationparticipation

35

Business Structure

36

Supermarkets

21%*153 stores

17%*178 stores

7%*62 stores

*of total sales

37

Extra and Extra Perto

52%*91 stores

15 stores

*of total sales

38

Extra Eletro and Extra Fácil

2%*42 stores

Convenience stores19 stores

*of total sales

39

Stores Localization

Ceará

São Paulo

Bahia

Rio de Janeiro

Paraná

Distrito Federal

Minas Gerais

Mato Grosso do Sul

15 5

5

1

24

3

Piauí4

9046

164

42

17 3

917

14

Paraíba3

Pernambuco9

Goiás1

62

2Rio Gde do Norte

Sergipe1

Alagoas2

2

2

19

Dec2007 153 stores 91 stores 178 stores 42 stores

1,338,329 m2

575 stores62 stores 19 stores

14

15 stores

1

1

15 stores

15

40

CBD’s Distribution Structure

85%of centralization

01 FortalezaMulti-Category

02 BrasíliaMulti-Category

03 Rio de JaneiroMulti-Category

02 RecifeMulti-Category

02 SalvadorMulti-Category

Built Area:385,000 m²

08 São PauloSpecialized

01 CuritibaMulit-Category

41

Extra Perto, Extra Fácil, Cash-and Carry (“atacarejo”) & Purchasing Center

New businesses

42

New formats: Extra Perto

Target Public:• Directed at classes B and C• Without inhibiting A• Should be attractive to D• Food – 1/3 of sales area,limited to 1,300 m2

• Non-Food – 2/3 of sales area

Image

Low Price

Nearby (Neighborhood) and Easily Accessible (Streets and Parking)

Practical for shopping (Optimizes customers’ time)

Efficient and courteous service

Non-food assortment sufficiently ample to impart a specialist’s image, with a pleasant grocer’s supermarket suitable for quick day-to-day shopping

43

Reduces Costs and Expenses

Make it Simple

Multifunctional performance of the store team

Benchmarking in the productivity indicators

Structure of operations limited to sales (model centralized in internal processes - CSC, etc)

Do not have some services (Gift List, etc...)

New formats: Extra Perto

Culture: Privileges the low structure of costs and human resources

Respond to the need for investment x spacex profitability

44

New formats: Extra Perto

45

New formats: Extra Fácil

46

GPA Strategy in Cash and Carry

“Atacarejo” (Cash-and-Carry Segment):

Segment growth: 9.4% (actual) in the past 5 years;

Assai:

Independent Management/ Management Experience (33 years in the

cash-and-carry business);

Low operating costs;

Low investment in new stores;

Potential Group’s store conversions;

Acquisition based on acceptable multiples (35% of net sales or 7x

EBITDA).

47

Gross Sales Trend

350

560

721

991

1.150

2003 2004 2005 2006 2007

Gro

ss S

ales

(R$

mill

ion) CAGR: 36%

Assai: Main Highlights

Founded in 1974, Assai Atacadista is a food distributor focused on serving food product resellers in

general, as well as retail customers

Assai operates in the segment which mostly grows in Brazil, known as cash & carry. This is a low-

investment business, with high sales volume and low operating costs

With 14 stores located in the State of São Paulo, workforce of 2,700 employees and sales area

totaling 34,750 m², the chain’s gross revenue reached R$ 1.15 billion in 2006

Assai’s monthly sales/m² amount to R$ 2,650,

which represents more than double the Brazilian

average for the retail food segment, according

to ABRAS (Brazilian Supermarket Association)

In the past 5 years, the chain posted 36% CAGR

over its gross sales

48

Purchasing Group

Partnership with União Brasil and start-up of the pilot project of activity in the Purchasing Group segment.

Without the need for investments in assets, the Group offered its commercial and logistic knowledge with

the objective of increasing its profitability by means of a retail segment that is growing at high levels in

Brazil.

In this initial stage, the partnership will exclusively serve Multishow (purchasing group affiliated to União

Brasil), with 52 associated stores and annual sales of R$ 200 million.

The initial sales are estimated at R$ 3.0 million/month and should double after the first six months of

2008. By the end of next year, the amount traded should be equivalent to the average amount of a

hypermarket store.

49

Appendix: Results

50

Food and Non Food

3.9%

1.2%3.3%

8.8%

0.5%

6.2%5.7%

3.7% 3.9%

3.2%

3.7%

0.4%-1.0%

2.1%

10.1%

-4.7%

10.3%

4.4%

-1.1%

1.0%

-6.7%

0.8%

4.2%

6.0%

3.5%

6.9%7.1%

0.4%

Jan-

07

Feb-

07

Mar-07

Apr-0

7

May-0

7

Jun-

07Ju

l-07

Aug-

07

Sep-

07

Oct-07

Nov-0

7

Dec-0

7

Jan-

08

Feb-

08

2007Food 3.1%

Non-Food 1.8%

Accumulated(Same Store Sales in Nominal Terms)

Non FoodFood

Same Store Sales include only stores with at least 12 months of operation

20083.8%

10.2%

51

25.1% 25.2% 26.7% 27.1% 27.0% 27.5% 27.9% 28.0% 28.2%29.2% 29.7%

28.2% 28.0%

3.1% 3.2%4.5%

5.7%6.7% 6.9% 7.3% 7.5% 7.9% 7.8% 8.2%

6.4% 6.9%

21.5% 21.6% 21.6% 20.9%19.7% 19.6% 20.0% 19.7% 19.8%

20.9% 20.9% 21.2% 20.5%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

1 EBITDA: Gross Margin – Op. Expenses – Tax & Charges2 SG&A expenses (does not include tax & charges)

Historical Margins

Gross Margin

Operating Expenses2

EBITDA Margin1

52

Income Statement

53

Common % Preferred % Total %

65.4 65.6% - - 65.4 28.7%

28.6 28.7% 3.8 3.0% 32.4 14.2%

2.8 2.8% 32.0 25.0% 34.8 15,3%

0.1 0.1% 73.1 57.1% 73.2 32.1%

99.7 100.0% 128.1 100.0% 227.8 100.0%

2.8 2.8% 19.2 15.0% 22.0 9.7%

Wilkes(1)

Casino Group

Abilio Diniz

Others

Total

Diniz Family

million of shares(1) Co-control 50% Abilio Diniz and 50% Casino Group

Shareholders Structure