Distribuidora Internacional de Alimentación S A : Annual Results

OTHER RELEVANT INFORMATION

TO THE NATIONAL SECURITIES MARKET COMISION

Pursuant to article 227 of the consolidated text of the Securities Market Act and development regulation, Distribuidora Internacional de Alimentación, S.A. ("DIA" or the "Company") hereby makes public its Trading Update corresponding to the fourth quarter and for the twelve-month period of the year 2022.

The Trading Update includes key data at Group and country level (Gross Sales Under Banner, Net Sales & Like-for-Like) as well as some background on the key drivers.

Las Rozas de Madrid (Madrid), January 26th 2023.

Distribuidora Internacional de Alimentación, S.A.

Jesús Soto Cantero

Chief Financial Officer

Dia 4Q and FY 2022 Trading Update

Dia Trading Update 4Q 2022 and

FY 2022

Dia Group delivered 7,286 million euros in net sales for 2022, a 9.6% growth above 2021, fueled by a 7.3% Like-for-Like sales growth in the fourth quarter

In Spain, Gross Sales Under Banner increased 6.3% to reach 5,317 million euros in

2022, with Like-for-like sales growth of 11.6% in the fourth quarter, gaining

market share

• At consolidated Group level, fourth quarter net sales amounted to 1,779 million euros with a Like-for-Like growth of 7.3%. These figures confirm the 3rd consecutive quarter of Like-for-Like sales increase and in cumulative basis positive Like for Like during the last 9 months in all our markets.
• Full year results show a consistent growth of our business units leveraging on a superior value proposition for our clients. The New Dia is built upon the new proximity store model, a renewed assortment, the online channel and Dia's improvements on its private label and fresh assortment.
• In the fourth quarter of the year, the number of tickets increased 6.9%, sustaining the positive trend from previous quarters. In 2022, the number of tickets grew 6.7% compared to a 0.9% decrease in the size of the average basket, confirming the positive perception and swift market adoption of the proximity model of Dia.
• Our new value proposition is fully deployed in Spain and Argentina, where 809 and 255 stores have been remodeled, respectively, during the year. 23 new stores have also been opened in Spain, as well as 101 in Argentina. With these transformations, both markets have a combined 2,211 new model stores, which account for 77% of our proximity network in those markets. The improvements in these countries resulted in above market average performance, with both of them gaining market share during the second half of the year.
• In addition, two strategic deals have been announced in 2022 which respond to the
  Group's strategy: the sale of a selection of large sized stores to Alcampo in Spain and the sale of Clarel, confirming our vouch for the proximity food retail model. Both transactions await the fulfillment of certain conditions and should be concluded during 2023.
• Net sales from stores belonging to the network sold to Alcampo and Clarel amounted to 761 million euros in 2022. Excluding these stores, Spain managed to deliver a Like- for-Like growth of 8.3% in the full year and 12.5% growth in the fourth quarter.
• Argentina has delivered an excellent net sales performance for the year reaching 1,364 million euros with a 30.8% growth (inflation effect on sales was 32.9%). These figures have been reached even though consumption has slowed down during the fourth quarter, causing a 1.2% volume shortfall amidst market share gains.

Dia 4Q and FY 2022 Trading Update

• In Portugal and Brazil, Like-for-like sales for the year have been 3.7% and 7.4%, respectively. Portugal's net sales grew 0.5% with a 7% footprint reduction, while Brazil delivered 890 million euros in net sales with a 10.9% growth albeit its 18% footprint contraction which was mostly executed at the beginning of 2022.

Trading Update 4Q and full year 2022

Dia Group has reached the end of a key year in the deployment of its proximity strategy. With 60% of its proximity network of stores at a global level operating under the new value proposition, the improvement delivered for both net sales and number of tickets confirm that clients value and trust in the New Dia: the preferred proximity store for all your day-to-day grocery needs, consisting of high quality products accessible to everyone.

"We have ended a challenging and very relevant year for Dia during which we have delivered key milestones within our strategic roadmap. The resulting sales acceleration confirms that the profound review of our strategy which began in 2019 has helped to consolidate a winning model and value proposition, driving us towards the end of the company's turnaround process. I thank our teams and franchisees for the huge effort made during these times because the New Dia has been built on the back of their commitment and dedication", assures DIA Group's Global CEO, Martin Tolcachir.

Focusing on proximity food retail, Dia's core business, has allowed the Company to gain market share in Spain and Argentina. "The course set by Spain and Argentina is proof of a successful transformation which, always placing our client's satisfaction at the core, delivers

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growth above market performance in both countries. In Brazil and Portugal, for the time being, we still need to improve our value proposition and accelerate growth", adds Tolcachir.

Store network and remodelings

Out of Dia Group's 5,699 stores at the end of 2022, the Company had 2.323 stores operating under the new model which represents 60% of our proximity network(6) at Group level. In Argentina there is a total of 551 of renewed stores and 112 in Portugal, which are proof of Dia's successful focus on proximity retail stores given their positive performance.

The number of tickets continues the growth trend seen in previous quarters with a 6.7% increase for full year 2022 at Group level, compared to a 0.9% reduction in the size of the average basket. Additionally, the fourth quarter held this trend with a 6.9% increase in the number of tickets. These figures confirm the positive perception and swift market adoption of the proximity model which is the focus of Dia's strategy.

During 2022, the weight of private label (under the Dia brand) within the share of basket of products has increased 4 percentual points in Spain, reaching 52.6%. This fact supports the good acceptance of the New Dia Quality and the perception of Dia as a modern, high quality brand at affordable prices. During 2022 we have renewed 690 new Dia products, elevating the total number of renewed products to 1,810 since 2020.

Focus on proximity food retail

During 2022 two strategic operations were announced which will have an impact on Spain's business: the sale of a selection of large sized stores to Alcampo and the sale of Clarel, the business unit dedicated to personal and home care. Both transactions await the fulfillment of certain conditions and should be concluded during 2023.

"Both decisions are aligned with our proximity strategy and allow Dia to focus its attention on its core business, food retail, building on what it does best: to be the preferred proximity retail store for all your day-to-day grocery needs, consisting of high quality products accessible to everyone", states Dia Group's Global CEO.

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Notes:

1. Gross Sales Under Banner as defined in the Consolidated Management Report for the first half of 2022. Total value of the turnover obtained in the stores at current exchange rate, including all indirect taxes (cash ticket value) and in all the Company's stores, both owned and franchised. In the case of Argentina, Gross Sales Under Banner are adjusted using domestic price inflation, thus isolating the hyperinflationary effect although it does reflect the devaluation effect.
2. Net sales expressed at current exchange rates and applying IAS 29 "Financial Information in Hyperinflationary Economies" in Argentina.
3. Represents the growth rate of Gross Sales Under Banner at constant exchange rate of those stores that have operated for a period of more than twelve months and one day under similar business conditions. Sales figure Like-for-Like in Argentina has been adjusted using internal inflation to reflect the variation in volume (units), avoiding erroneous calculations due to the effect of hyper-inflation.
4. At the end of the period.
5. Excluding 226 stores included in the asset sale transaction signed with Alcampo and announced by the company on August 2nd, 2022.
6. Excluding Maxi stores (Spain and Portugal), La Plaza and Clarel.

investor.relations@diagroup.comainhoa.murga@diagroup.com

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