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So you've got to let me know Should I stay or should I go? It's always tease, tease, tease You're happy when I'm on my knees One day it's fine, the next it's black So if you want me off your back Well come on and let me know

The Mangalu conference will begin in a few moments. Good morning everyone. Thank you for waiting. Welcome to Magalu's teleconference about the quarterly results. For those who need simultaneous translation, just click on the interpretation button through the globe icon at the bottom of the screen and choose your preferred language, English or Portuguese. We inform you that this event is being recorded and will be available on the company's RI website at ri.magazineluiza.com.br. Where you can find the release of results and the presentation, both in the Portuguese and English versions. The link for the presentation in English is also available in the chat. During the presentation, all participants will have their microphones disabled. Next, we will start the Q&A session. To ask questions, click on the Q&A icon at the bottom of your screen. Write your name, company and language of the question. When it is announced, a request to activate your microphone will appear on the screen and then you must activate the microphone to continue with the question. The questions received by subscribers will be answered later by the team of relationships with investors. I would now like to give the floor to Fred Trajano, CEO of Magalu. Please, Fred, you can start.

Good morning everyone. Thank you very much for participating in our results call for the second quarter of 2026. Once again, I am here with all the executive directors and vertical leaders of Magalu, of the Magalu ecosystem, to answer your questions at the end of our presentation. Well, as we said in the first call this year, in 2026 we entered the new strategic cycle of Magalu, after the digitalization cycle and the diversification cycle and the creation of the ecosystem, and in this new cycle we defined some value creation pillars. I put these pillars of two big blocks. The first block is to consolidate our omnichannel leadership with IA, basically a block dedicated to all our retail assets. And the second block is to accelerate the monetization of services through the growth of our services platforms, of the companies and many others that we bought or built in this ecosystem cycle. In the first block, which is the block to consolidate Omnichannel leadership, we have extremely clear initiatives and we had advances in practically all of them already in the first half of the year. A highlight here to accelerate the growth of physical stores, not only for durable goods, but also for other group companies such as Netshoes, Epoca Cosméticos, Kabum, e até a estante virtual também que a gente abriu a primeira unidade com a Galeria Magalu. Nós tivemos um tri, um primeiro semestre muito bom, mas especialmente o segundo tri foi um tri excepcional do ponto de vista de lojas físicas. Retomamos a abertura de lojas físicas com a unidade de Ceilândia e tivemos também a inauguração da Galeria Magalu no final do ano passado, que está indo André Matricardi, Julio Cesar Trajano André Matricardi, Julio Cesar Trajano We have two ways to do this, in the short term and more in the medium and long term. In the short term, the way we found to resume online growth is by forming partnerships with third-party platforms. We announced a partnership specifically in the second quarter. A gente começou a operar em junho, mas tivemos o mês de julho, que é a parceria com a Amazon, e como eu vou falar um pouco mais pra frente e descrever ela, nós devemos anunciar novas parcerias aí ao longo dos próximos meses, tá? Ou até das próximas semanas. Então, também vemos um caminho aqui, ao disponibilizar a nossa gama de produtos Sumpay em plataformas terceiras, a gente acredita que a gente vai conseguir retomar o crescimento online, André Matricardi, Julio Cesar Trajano Inacio Rodrigues, André Matricardi, Julio Cesar Trajano E o terceiro é redefinir o posicionamento digital com experiência de curadoria e, principalmente, com AI. Nós lançamos no final do ano passado duas grandes inovações. Uma foi a Galeria Magalu, que, como eu falei, está indo muito bem nesse primeiro semestre. A gente pretende replicar esse formato para frente. E o outro foi o WhatsApp da Lu, e nós já conseguimos bater mais de 100 milhões de captação, com grandes destaques, por últimos dois meses. Então, está tendo um crescimento exponencial o WhatsApp da Lu. and we will also share some of their numbers here with you in our conference. It is obviously a medium and long-term initiative. Listing products without third-party partnerships is a short-term initiative, it can be an online growth, a profitability, but without a doubt, for the long term, our main focus is Lu and the experience of iCommerce, an innovative pioneer that we created here in Brazil via WhatsApp, which we will also take to the web in the second semester. And finally, in the second block, Here is the second block to accelerate our service platforms. We have three big companies here, Magalog, Magalocloud, and Magalu Pay, which is also growing a lot, and which is not a company but a service platform, Magalu Ads. All of them with very positive numbers in the second quarter and even better, with an exceptional perspective for the segment of the cycle. So this cycle is now With very well defined pillars and we believe that this second quarter has already shown that we are on the right track and that we have a lot of engines to create value for our sub-quartets. Let's start now with the highlights of the quarter specifically. I wanted to make three big highlights, then Beto will elaborate better. André Matricardi Fabrício Garcia André Cesar Trajano André Cesar Trajano Alperi Passado, the same trio from the previous year. Here we have highlights of our rationality. We had an increase in prices in products whose memory components, which are increasing all over the world, have an impact, such as telephony, such as games, PlayStation, for example, as well as all the items from the IT sector that impacted here. Magalu and Cabum, and we reviewed this, keeping our strategic discipline, even accepting here a drop in the specific share line, which weighs on the maintenance and our strategic and tactical consistency here regarding the maintenance of profitability. With this, we were able to present an EBITDA of R$ 709 million. André Cesar Trajano We've had frozen treatments since the beginning of the year. We also have a lot of control over all the accounts. We have our financial management initiatives here. We have a consultancy that is still supporting us. We still have a lot to collect from the expense management point of view. We have a very large space. The total operating expenses of Magalu in the year represent more than R$ 10 billion, so there is a lot of opportunity here in almost all the expenses accounts for us to continue working and all the directors of the company are very focused here on continuing to execute this agenda. So we didn't get to the end here. From the expense control point of view, there are still things to be done. Our Red Card fell basically with frame freezing, both in the controller and in the general companies of the group, including Fintech itself. So I think there is a highlight here of our control and of our rationality that is very good. We also didn't enter any big package of the World Cup, we didn't buy any, we didn't make any big sponsorship, we knew the Cup was going to be good. But we didn't overdo it here in our marketing investments. In the last World Cup, for example, we were the sponsor of the games and we entered into packages of tens of millions of reais, even hundreds of millions of reais, hundreds of millions of reais to sponsor the World Cup. This year we kept our feet on the ground here and we tried not to make great investments in that sense. And UAB Didá is also very... André Matricardi, Julio Cesar Trajano Inacio Rodrigues, André Matricardi, Julio Cesar Trajano André Matricardi, Julio Cesar Trajano and the new financier of the group, Opero CDC, who also started with the right hand. Let's give color to this in my presentation and then Greg is here to answer your questions. You can go on. So these were the highlights, physical stores, maintenance, gross margin growth, expense control and our financial operations. Giving more color to the physical store here, we grew by 9.7%, André Matricardi, Julio Cesar Trajano André Matricardi, Julio Cesar Trajano Linha Branca grew 15% in the quarter and Móveis grew 10%. I'm showing here that Magalu's performance in the physical store is solid, it is a performance that is well distributed between geographies and categories We have innovations in the physical store, such as the implementation of physical stores for our group formats, such as the Magaluque Gallery, which has been a resounding success. We had a fantastic first semester, a lot of visits, a lot of spontaneous media, a great flow of people, which is the most difficult thing today to have a flow of people in the physical store. With the model that we implemented from the Magalu Gallery, with the constant presence of influencers, with the YouTube theater, with a series of events there, in the past week there was the anniversary of Harry Potter in the store, we managed to break this cycle of loss of customers in physical stores and it is being a format there, I think it is also very interesting. And as I said, we opened a store in Seylandia and we must open new stores here in the second semester, maybe it can give more scope for this later here at Q&A as well. In compensation, it can be online, we kept our consistency, we sold 9.3 billion in the second quarter of this year. Although online we have been doing well in the TV category, we kept our discipline and our focus on growth with profitability, commercial discipline. We had an impact here, some categories had, as I said at the beginning of the course, Telefonia, Informática, Hardware and the category of Games. We can later detail a little better the price changes, Fabrício and even Julio from K1 can give some color here of what happened. We reviewed, I think that whenever you do a review in the first quarter, there is an accommodation of the consumer, because he was paying, for example, R$ 3,200 on an iPhone 16e, And now this phone is already going to R$4,000, so there is an accumulation at the beginning. The iPhone 16 is the first price of Apple products, then it gets used to it and we end up buying it first. But in this trimester that there is a repass, like the same thing for PlayStation, the same thing for practically all products in the IT category, this ends up suffering. This repass of memory costs is due to the global increase in acquisition, the data centers are buying memory as always, You saw what happened with the Korean stock market, the growth of the companies that produce in-memory, both Samsung and its competitor in Korea. These are companies that are having very high results and are passing this on to the other categories. We kept this discipline, so we grew in the physical store when we were having profitability, we opened up a little bit Thank you for watching! We believe that we will be able to do this in the second semester, especially in the fourth trimester, but already in some months here in the third trimester, it is bad here. I just wanted to explain the rationale, because I know that there will be many questions about it. The idea is to position our own channels in Magalu, to consolidate our product leadership in 1P. Magalu is one of the largest platforms in Brazil, but it is the main seller in Brazil in 1P. In addition to being a platform that has 1P and 3P, a direct sales channel, we are the largest operator of 1P in Brazil through our flags. We are leaders in electronics, we are leaders in sports products, mostly U.P. Epoca Cosmetics, one of the leaders in beauty in Brazil, and Kabum, obviously, in the category of games. So we are leaders in U.P. In these categories, we were only selling the products in 1P to the 50 million monthly active users of Magalu, which are people who always navigate. There are 500 million visits, but there are 50 million unique users who visit our platforms here. We know that the web audience is much larger than these 50 million users who visit Kabum, Magalu, direct channels. And so we decided to introduce these products in third-party platforms. We had already done this with Aliexpress in 2024, with great success. Aliexpress is a very good partnership and we continue to grow this partnership. What is the rationale for us here? We think that the audience of Brazilian e-commerce is polluted and will be more polluted with many platforms here disputing the audience of our customers. Why not list our products on other platforms other than Magalu? So we started these negotiations at the end of last year. In this second trimester, we announced an important partnership here with Amazon from Brazil. and we must announce others now over the next few months. What is rational in these negotiations? The first are all negotiations that, obviously, because Marcelo is from Brazil, Magalu wants to have special conditions and reciprocity. So it's a point, a premise for us, we're just going to list implantations of third parties, If the profitability in these platforms is potentially higher than the average of Magalu's online channels, it will obviously be lower than when the client comes in organically to our direct channel, but it has to be higher than when we, for example, bring a client through a platform like Google, like Meta, like Facebook, that is, a client that comes through paid media. So the profitability in these channels has to be higher than paid media, Because obviously this client is from the third platform in the long term, not in the short term, the sale is ours, so we have to have this rationale. So we take a long time to announce the partnerships because we want to reach that negotiation that guarantees us a positive margin of contribution. We want to resume the online growth, but we will only do this if it is with more contribution, if it is a positive business, because we are very little. And another thing we expect from these partnerships is a minimum of reciprocity for the services of the Magalu ecosystem. We have focused a lot on Magalog, both from the point of view of everything I sell on these platforms. The idea is that even because we have a global platform, I'm going to talk a little bit about Magalog, as it's going well this quarter. Magalog is one of the largest logistics operators in Brazil and is open to sell to third parties. We also put it as important for us to close this business, to list the products on third-party platforms, to bring volume of these platforms to Magalog, not only what we are selling there, but also the operation of their P or, for example, of other sellers as well. And then, with this, we expand the density of the logistics network in Magalu, generating a scale gain through Magalog. So, we have to have this, profitability higher than our average, and we also have to have some level of reciprocity, mainly now we have focused on our logistics operation, both light and heavy, and also with the potential of removing products from these platforms in the physical stores in Magalu. Thank you for watching! Fabrício Bittar Garcia The idea here is phased, today we are competing at Buybox as any seller. We will enter here in a model that they call FBA on site, which means that from October or even a little before that, we will have our products with a Prime seal, with the potential to win Buybox and earn more sales. I believe that this tri will already be full, it is a tri of an expressive sales volume that will help André Cesar Trajano Thank you for watching! I would like to highlight that selling on third-party platforms is a very short-term solution for us to regain a positive online growth territory, but in the medium term we believe a lot in one of the great innovations that we have launched in recent years, which was Lu's WhatsApp. We announced to the market last month that we have already reached 100 million MVs, obviously we are only in December, It started recently, in the last few months we have been ramping up this operation a lot. We have generated more than 18 million conversations, remembering that it is a channel in which you have the authentication of the post-sale checkout conversations within the WhatsApp channel. You don't need to go to the app to make the purchase. This sales channel, Agente eCommerce, won. A lion in canes now in the quarter as one of the most creative solutions here of e-commerce and the use of artificial intelligence in a digital channel in this quarter. We are still with a three times higher conversion than our application and we already have a good number here, 20% of the clients who bought, remembering that most of the clients who bought in the last months have already returned here, obviously this ramp has been growing, January, February more than January, March more than May, June and July were the great highlights here on WhatsApp. We think that this percentage of clients who come back to buy on WhatsApp will increase a lot, but this 20% André Matricardi. and Massa Iniciativa de Arcoma. This is a great highlight of our operation. Moving on to the services platforms, I would like to highlight here the EDS, we had a growth of CTR of production products, 51% versus 2025. CELERS ACTIVOS ANUNCIANDO CRECEU 13% e eu queria fazer um destaque especial aqui porque a gente é uma plataforma não só para CELERS e para a nossa audiência, nós temos as nossas lojas que são mais de 20 mil painéis de lojas, então a gente montou aqui uma plataforma de Retail Media que serve para outras marcas também. E acho que o grande destaque do EDS e do segundo tri foi o fato de que a Hyundai escolheu Magalu Media Platform, especially Magalu for the launch of the i20, which is Hyundai's big bet here in the Brazilian market, the third car produced here in Brazil on the Piracicaba platform, to launch its product. and it was launched with Alu. Alu took the driver's license and launched this product. Our efforts to promote this new car were not limited only to its presence in communication. We used all our social channels, we are using our stores here. and the Hyundai i20 is the third most sold car in Brazil. There are several dealers that do not have this product. So, showing here the possibility of us monetizing our audience and the good work of our team. André Cesar Trajano, Julio Cesar For Magalu Pay, as I said, one of the big stocks born for the business. I'll talk quickly about the numbers here, but I think we can elaborate this better in Q&A. Luiza Credit, another very good quarter, with 15B of TPV, a 20B portfolio, 135 million profit in the quarter, growth of 32% over the same quarter of last year. More than 23%. Our IEF, starting here and with the growth of the portfolio, we already have 100% of the production of the company's CDC in our finance. We still have a portfolio in Varejo that is reducing, Jorge can explain this better, but our IEF has already started with 17 million in liquid profit. We launched the first CDB here in the quarter for our IEF. Our IEF, remembering it, operates our CDC. André Matricardi And we have more than 11,000 clients with insurance assets contracts this quarter. And a big highlight, we talked a little about it, but we have one of the largest consortium operators in Brazil. It sold 2,000 in credit cards in the second trimester, 30% growth over the second trimester of last year. We have more than 11,000 assets under the total credit card collection. E temos aí um lucro líquido de 15 milhões no nosso consórcio. Então assim, no geral, os nossos negócios financeiros estão indo bem e ainda com uma perspectiva muito positiva, principalmente aí com o ramp-up da nossa financeira. Eu acho que depois a gente queria poder detalhar isso melhor no Q&A. Pode passar? I would also like to highlight Magalog, which has a growth of 15% of orders delivered to the 3rd and 2nd TRI, without considering this volume that we closed with Amazon, which should enter here from the 3rd TRI. We have new customers such as TPL Logística, Balastrini, Nestlé, Samsung itself. and we closed the contract with her. So, very positive numbers here. We have increased the number of bases that are, in addition to having the stores that use them, they are based in retirada and our big CDs too. We now have 200 units in operation. We have opened 27 new bases here for the logistics area and we are working very efficiently with the use of technology, but nothing is as good as increasing the volume. So Magaluog is in a very positive context, with a lot of opportunities. There are very few carriers that have its level of service above 95% with its cost and the fact that it obviously shares these volumes with Magaluog ends up helping us to have a competitive offer for the market as well. We are excited here with this possibility. André Matricardi We have closed the acquisition here, the approval of the acquisition of R$ 300 million together with BNDES for MagroCloud. This number will not be debited, not at once, but R$ 100 million here from this quarter. We must grow these debits here over the next quarter and it will be, these are numbers invested here mainly in research and development which is the focus here of this capture by our team that has made very cool products, such as, for example, we have our first AI product in Magalu Cloud, so we can now make it available to our clients in Magalu Cloud as an inference, not a training, but an inference, both for GPUs that are from our own infrastructure, as well as for models that are outside of Magalu Cloud, We expanded three availability zones in the Southeast. and we are also expanding our data centers. We are obtaining more and more certifications such as 27001, NIST, SOC2, there are several certifications here, either already completely approved or in the activation process. This is important for us, especially for the sale of Cloud. For public services, which is one of its major targets, given the issue of national data sovereignty, increasingly critical. I think this is the main point, a great opportunity for Magalu Claudi to be in this growing issue in countries around the world in relation to data sovereignty. And these certifications are fundamental for us to be able to provide this service and participate in the government bids. and other private regulated sectors that I think are super important. So we are here in a good moment for Margalo Cláudio and we can detail this better than I did. Now I'll pass it to Beto for the financial highlights.