Lojas Renner S A : 2023 Annual Report

Table of contents

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About the report

GRI 2-5

This report is the result of a collaborative, multidisciplinary effort involving approximately 50 employees from our company to monitor and disclosure key indicators that demonstrate the company's value creation and the progress of our 2030 ESG strategy.

The report is audited by an independent third-party organization and is validated by the Executive Board and the President of the Board to ensure its integrity. The Boards declare that this publication complies with the recommendations of the Accounting Pronouncements Committee technical guidance (CPC 09).

This report adheres to the best practices in performance management and ESG transparency, which the Company has innovatively adopted and upheld over the years .These practices drive our continual evolution in addressing the primary challenges confronting the industry and the business, aimed at reducing impact and fostering the development of sustainable solutions.

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Introduction

Over the past few decades, we have crafted a proprietary, unique operational model firmly rooted in our purpose. This model not only grants us competitive advantages but also strengthens our ability to create lasting value over the years. We believe that companies guided by a consistent and socially beneficial purpose and value proposition are the ones that will flourish and adapt to diverse future landscapes.

Guided by this belief, we navigated through 2023 by making important adjustments to our ecosystem strategy. These changes were essential to place us at the forefront of our segment, establishing us as a prominent authority in fashion and lifestyle, as well as captivating experiences, while remaining steadfast in our commitment to responsible practices. Every investment we undertook focused on these three pillars, ensuring our brands are well prepared for sustained growth and efficiency gains.

Operation results

2023 was a challenging year marked by non-recurring effects stemming from changes that had unfolded over previous years. These changes initially posed hurdles, but, ultimately, they became catalysts for growth and efficiency. In addition, we faced a difficult

macroeconomic landscape, characterized by high default rates, which, in turn, impacted consumers' income and purchasing power.

To address this scenario, we undertook internal adjustments to adapt to our customers' needs and expectations, such as targeted adjustments to bolster our market position and enhance competitiveness. We also conducted campaigns to reinforce our brand presence and commitment to sustainability. As a result, our net retail revenue for the year stood at R$11.7 billion, stable compared to 2022, but with a 9.3% increase in clothing revenue (excluding cosmetics) in the Brazilian operations during the last quarter, surpassing the Clothing PMC (IBGE Monthly Trade Survey) for the same period. This achievement gives us the confidence that our trajectory toward recovery will persist in 2024.

This confidence is bolstered by the outcomes of transformative initiatives undertaken in recent years. These projects spanned our trend analysis model, collection development, logistics and distribution, supplier qualification, and omnichannel approach. As a result, we've achieved greater agility and flexibility. Notably, a significant portion of our collection is now developed and bought in-season. This strategic shift enhances our ability to cater precisely to our clients' desires, leading to a more accurate stock, reduced rupture, and heightened efficiency and enchantment.

Responsible fashion

At the heart of our efforts to leverage value creation lies our commitment to responsible fashion. Guided by the second cycle of public commitments for 2030, we prioritize building human and diverse relations, as well

environmental criteria. Of these, 38.2% are ranked at the alpha, beta, and A levels of our matrix, indicating high performance and ESG compliance. Furthermore, we've extended this certification to 99% of our home and decor suppliers, thereby broadening our supply chain's compliance levels.

As a result of these initiatives, we've secured a spot in the ISE B3 for the tenth consecutive year, ranking 1st among retailers and 2nd overall. Additionally, we've once again emerged as the top fashion retailer in the Dow Jones Sustainability Index and the second in general retail.

Transition

As the end of his term approaches, Mr. José Galló, after 5 years presiding over our Board of Directors, has decided to close an important cycle and will no longer be part of our Board after our Annual General Meeting, scheduled for April 18, 2024.

In his own words, José Galló: "I would like to announce that, after 32 years of dedication to Renner, 27 of which as CEO and, for the last five, as chairman of the Board of Directors, I have made the personal and planned decision not to present my name for a new term. The time has come when I want more time to dedicate myself to personal interests and to take an active part in my family's business and social projects. Therefore, I take this opportunity to write a brief personal message of thanks.

Over these three decades, I have dedicated myself fully and passionately to leading Renner's transformation from a chain with eight stores in Rio Grande do Sul to a fashion and lifestyle ecosystem, with more than 650 stores in Brazil, Argentina, and Uruguay, connecting with

millions of customers also on digital channels. Today, the Company has 24 thousand direct employees, with an indirect impact on more than 100 thousand people. I am convinced that the Culture of Enchantment we have built in the Company has been the great driver of this result.

It is with great joy that I say that this enchantment goes far beyond making the Company grow: It mainly means making both our employees and our customers happy and fulfilling their dreams. I leave feeling a sense of accomplishment for having seen so many employees develop their potential, grow professionally, and become leaders. In challenging moments, Renner's people, working collaboratively, did extraordinary things even with few resources. This makes everything worthwhile.

Renner is an outstanding company, and I am sure that the coming years will bring several opportunities for it to extend its purpose to even more people. I am convinced that Renner is well-prepared and has every condition to continue to keep up with technological transformations, new habits and social behaviors, and its sustainability agenda, prioritizing its commitment to our customers, shareholders, employees, partners, and society. Above all, it will be tireless in always keeping the flame of enchantment alive.

Lastly, I want to extend my thanks to everyone who has been by my side and supported me throughout this journey and especially to the people who make Renner a Company that makes us all proud."

Fabio Faccio, the CEO of the company, expresses his gratitude by saying, "I would like thank Mr. José Galló on behalf of our Board of Directors, Management, and all our employees. His pivotal role in transforming our company

into the country's leading fashion retailer cannot be overstated. His words portray well his trajectory and the relevance of all his contributions over 32 years of dedication to our Lojas Renner S.A. I would also like to take this opportunity to thank Mr. Thomas Herrmann for his cooperation during his two 7-year cycles with us in different periods, which will also end at the end of this term."

Acknowledgments

We would like to thank our employees for their engagement and dedication; our suppliers, whose partnership is integral in our operations; our shareholders, for their confidence in our business; and our customers and the broader community, for their support and affinity towards our brands.

Financial solutions

Established in 2021, it is our financial institution connected with the fashion and lifestyle universe, fostering customer loyalty and convenience, and providing support to the company's retail operations

Logistics

Uello, acquired in 2022, is our logtech, a logistics company that was born digital and provides solutions for urban deliveries that play an essential role as enablers within our ecosystem.

Innovation

Our investment fund finances new businesses that have the potential to transform the fashion value chain and that incorporate ESG (Environmental, Social, and Governance) innovations and best practices.