C&A Modas S A : 1Q24 Interim Financial Information

Interim Financial Statement

C&A Modas S.A.

March 31, 2024 and 2023

and the Report of the Independent Auditor

C&A Modas S.A.

Interim Financial Statement

March 31, 2024 and 2023

Contents

Report of the independent auditor on the review of the quarterly information	.......................................1
Interim Financial Statement
Statements of financial position	3
Statement of earnings	5
Statement of comprehensive income (loss)	6
Statements of changes in equity	7
Statements of cash flow	8
Statements of value added	9
Notes to the interim financial statements	10

Independent auditor's review report on quarterly information

To the Officers and Shareholders of

C&A Modas S.A.

Barueri - SP

Introduction

We have reviewed the accompanying individual and consolidated interim financial information, contained in the Quarterly Information Form (ITR) of C&A Modas S.A. (the "Company") for the quarter ended March 31, 2024, comprising the statement of financial position as at March 31, 2024 and the related statements of profit or loss, of comprehensive income (loss), and the statements of changes in equity and cash flows for the three-month period then ended including the explanatory notes, including material accounting policies and other instructive information.

Responsibilities of management for Interim Accounting Information

Management is responsible for preparation of the individual and consolidated interim financial information in accordance with Accounting Pronouncement NBC TG 21 Interim Financial Reporting, and IAS 34 Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the fair presentation of this information in conformity with the rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of the Quarterly Information Form (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and International Standards on Review Engagements (NBC TR 2410 and ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the individual and consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information included in the quarterly information referred to above was not prepared, in all material respects, in accordance with NBC TG 21 and IAS 34 applicable to the preparation of Quarterly Information Form (ITR), and presented consistently with the rules issued by the Brazilian Securities and Exchange Commission (CVM).

Other matters

Statements of value added

The above-mentioned quarterly information includes the individual and consolidated statements of value added (SVA) for the three-month period ended March 31, 2024, prepared under Company's Management responsibility and presented as supplementary information by IAS 34. These statements have been subject to review procedures performed together with the review of the quarterly information with the objective to conclude whether they are reconciled to the interim financial information and the accounting records, as applicable, and if its format and content are in accordance with the criteria set forth by NBC TG 09 Statement of Value Added. Based on our review, we are not aware of any facts that would lead us to believe that these statements of value added have not been prepared, in all material respects, in accordance with the criteria set forth in this Standard and in a manner consistent with the individual and consolidated interim accounting information taken together.

São Paulo, May 09, 2024.

ERNST & YOUNG

Auditores Independentes S.S. Ltda.

CRC-2SP034519/O

Flávio Serpejante Peppe

Accountant CRC-1SP172167/O

2

C&A Modas S.A.

Statements of Financial Position

On March 31, 2024 and December 31, 2023 (in thousand Reals)

		Parent Company	Consolidated
	Note	03/31/2024	12/31/2023	03/31/2024	12/31/2023
Assets
Current
Cash and cash equivalents	6	834,923	1,130,245	1,017,682	1,155,588
Bonds and securities	7	-	-	184,997	191,587
Trade receivables	8	635,917	1,054,599	1,264,381	1,778,421
Inventory	11	1,049,989	875,238	1,049,989	875,155
Taxes recoverable	12	410,204	379,126	413,105	388,451
Derivatives	32.4	1,117	721	1,117	721
Related parties	9	716	323	115	92
Other Assets	13	48,203	51,785	48,239	51,827
Total current assets		2,981,069	3,492,037	3,979,625	4,441,842
Non-current assets
Long-term assets
Bonds and securities - FIDC	7	839,434	791,352	-	-
Deferred taxes	14	554,962	535,488	553,489	535,959
Related parties	9	5	19	5	19
Taxes recoverable	12	1,236,153	1,197,839	1,236,153	1,197,839
Judicial deposits	25.3	49,553	47,641	49,559	47,668
Other Assets	13	2,635	3,219	2,635	3,219
Total long-term assets		2,682,742	2,575,558	1,841,841	1,784,704
Investments	15	122,827	118,249	-	-
Property and Equipment	16	730,789	763,401	730,789	763,401
Right-of-use assets - leases	19	1,394,451	1,462,945	1,394,451	1,462,945
Intangible assets	17	939,575	964,493	939,823	964,764
Total non-current assets		5,870,384	5,884,646	4,906,904	4,975,814
Total assets		8,851,453	9,376,683	8,886,529	9,417,656

3

C&A Modas S.A.

Statements of Financial Position

On March 31, 2024 and December 31, 2023 (in thousand Reals)

		Parent Company	Consolidated
	Note	03/31/2024	12/31/2023	03/31/2024	12/31/2023
Net liabilities and equity
Current
Labor liabilities	23	262,947	230,098	265,955	231,364
Suppliers	20	905,496	1,172,988	921,779	1,189,225
Obligations - Forfait	21	248,822	364,709	248,822	364,709
Taxes payable	24	44,696	277,772	46,086	287,249
Loans and debentures	22	556,625	511,427	556,625	511,427
Related parties	9	137,123	79,760	129,896	71,661
Derivatives	32.4	376	1,392	376	1,392
Leases	19	532,294	501,642	532,294	501,642
Other liabilities		22,091	20,571	42,194	41,462
Total current liabilities		2,710,470	3,160,359	2,744,027	3,200,131
Non-current assets
Labor liabilities	23	14,278	18,740	14,278	18,740
Suppliers	20	557,750	551,248	557,750	551,248
Taxes payable	24	15,713	12,410	15,713	12,410
Loans and debentures	22	1,137,387	1,176,427	1,137,387	1,176,427
Leases	19	1,121,418	1,209,781	1,121,418	1,209,781
Provisions for tax, civil, and labor risks	25	159,058	183,791	160,574	184,989
Other liabilities		55,121	51,211	55,121	51,211
Total non-current liabilities		3,060,725	3,203,608	3,062,241	3,204,806
Total liabilities		5,771,195	6,363,967	5,806,268	6,404,937
Shareholder's Equity
Capital stock	26	1,847,177	1,847,177	1,847,177	1,847,177
Shares in Treasury		(2,003)	(8,498)	(2,003)	(8,498)
Capital reserve		39,088	49,879	39,088	49,879
Profit reserve		1,124,744	1,124,744	1,124,744	1,124,744
Other comprehensive income		398	(586)	398	(586)
Accumulated profits		70,854	-	70,854	-
Total controlling shareholders		3,080,258	3,012,716	3,080,258	3,012,716
Total non-controlling shareholders		-	-	3	3
Total shareholder's equity		3,080,258	3,012,716	3,080,261	3,012,719
Total liabilities and shareholder's equity		8,851,453	9,376,683	8,886,529	9,417,656

See accompanying notes.

4

C&A Modas S.A.

Statements of earnings

Quarters ending March 31, 2024 and 2023

(In thousand Reals - R$, except earnings per share)

		Parent Company	Consolidated
	Note	03/31/2024	03/31/2023	03/31/2024	03/31/2023
Net Revenue	28	1,362,865	1,187,509	1,453,008	1,240,577
Sales of goods and services		1,334,376	1,161,408	1,339,140	1,161,408
Financial Products and Services		28,489	26,101	113,868	79,169
Cost of goods sold and services rendered	29	(682,690)	(615,951)	(682,659)	(616,056)
Sales of goods and services		(682,614)	(615,835)	(682,531)	(615,727)
Financial Products and Services		(76)	(116)	(128)	(329)
Gross profit		680,175	571,558	770,349	624,521
Operating revenue (expenses):
Sales expenses	29	(521,702)	(481,838)	(534,013)	(509,023)
General and administrative	29	(203,396)	(168,777)	(203,767)	(170,160)
Net credit losses	8.5	-	-	(41,004)	(44,124)
Share of profit of subsidiaries	15	4,526	(19,815)	-	-
Other net operating income (expenses)	29	64,313	5,615	64,317	5,591
Profit/(Loss) before financial results		23,916	(93,257)	55,882	(93,195)
Exchange variation		(1,931)	(683)	(1,931)	(683)
Finance expenses		(153,354)	(168,045)	(144,737)	(168,923)
Finance income		139,471	67,802	141,816	68,626
FIDC C&A Pay Earnings		41,582	-	-	-
Earnings from Bonds and Securities		-	-	953	-
Finance results	30	25,768	(100,926)	(3,899)	(100,980)
Profit/(loss) before income taxes		49,684	(194,183)	51,983	(194,175)
Income taxes	14	21,170	67,838	18,871	67,828
Net Profit (Loss) for the Period		70,854	(126,345)	70,854	(126,347)
Attributable to the shareholders:
Non-controlling				-	(2)
Controlling				70,854	(126,345)
				70,854	(126,347)
Basic Profit/(Loss) per share - in R$	35			0.2303	(0.4134)
Diluted Profit/(Loss) per share - in R$	35			0.2278	(0.4134)

See accompanying notes.

5

C&A Modas S.A.

Statement of comprehensive income (loss) Quarters ending March 31, 2024 and 2023 (in thousand Reals - R$)

	Parent Company	Consolidated
	03/31/2024	03/31/2023	03/31/2024	03/31/2023
Net Profit (Loss) for the Period	70,854	(126,345)	70,854	(126,347)
Other comprehensive results:
Gains (losses) from derivatives	1,412	(4,629)	1,412	(4,629)
Other comprehensive results (*)	52	-	52	-
Tax effects	(480)	1,574	(480)	1,574
Total comprehensive results to be reclassified to
results for the period in subsequent periods, net of
taxes	984	(3,055)	984	(3,055)
Total comprehensive results	71,838	(129,400)	71,838	(129,402)
Attributable to the shareholders:
Non-controlling			-	(2)
Controlling			71,838	(129,400)
			71,838	(129,402)

(*) this is due to the mark-to-market adjustment of C&A Pay SCD Treasury Financial Letters.

See accompanying notes.

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C&A Modas S.A.

Statements of changes in equity

Quarters ending March 31, 2024 and 2023 (in thousand Reals - R$)

															Other
								Capital reserve			Profit reserve		comprehensive
											income
												Reserves
												for	Reserve		Equity		Accumulated	Total	Non-	Total
				Capital			Shares in	Capital	Shares		Legal	unrealized	for tax		valuation		profits	controlling
							Reserve for		controlling	shareholder's
	Note			stock			Treasury	reserve	granted		reserve	gains	incentives investments	adjustments			interests	interests	equity
Balance on December 31, 2022		1,847,177	(6,778)	10,516	27,125	65,092	75,720	12,341	969,256	(254)	-	3,000,195	1	3,000,196
Equity instruments granted - share-based
compensation	10	-	-	-	2,085	-	-	-	-	-	-	2,085	-	2,085
Share buy-back		-	(1,720)	-	-	-	-	-		-	-	(1,720)	-	(1,720)
Destination of earnings:
Net losses in the period		-	-	-	-	-	-	-	-	-	(126,345)	(126,345)	(2)	(126,347)
Other comprehensive income			-		-	-	-	-	-	-	-	(3,055)	-	(3,055)	-	(3,055)
Balance on March 31, 2023			1,847,177		(8,498)	10,516	29,210	65,092	75,720	12,341	969,256	(3,309)	(126,345)	2,871,160	(1)	2,871,159
Balance on December 31, 2023		1,847,177	(8,498)	10,516	39,363	65,208	75,720	14,560	969,256	(586)	-	3,012,716	3	3,012,719
Equity instruments granted - share-based
compensation	10	-	-	-	3,159	-	-	-	-	-	-	3,159	-	3,159
Share transfers - stock option plan (i)		-	6,495	-	(13,950)	-	-	-	-	-	-	(7,455)	-	(7,455)
Destination of earnings:																		-	-	-
Net income for the period		-	-	-	-	-	-	-	-	-	70,854	70,854	-	70,854
Legal reserve		-	-	-	-	-	-	-	-	-	-	-	-	-
Other comprehensive income			-		-	-	-		-	-	-	-	984	-	984	-	984
Balance on March 31, 2024			1,847,177		(2,003)	10,516	28,572	65,208	75,720	14,560	969,256	398	70,854	3,080,258	3	3,080,261

(i) In March 2024 stock options in the PSU 2021 compensation plan were exercised (see changes in note 10)

See accompanying notes.

7