1Q10 Earnings Release

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1 Rio de Janeiro, Brazil, May 10, 2010 Globex Utilidades S.A. (BM&FBOVESPA: GLOB3; OTC: GBXPY) announces its results for the first quarter of 2010 (). The Company s operating and financial information presented herein was prepared in accordance with generally accepted accounting principles in Brazil (BR GAAP) and Brazilian Corporate Law. All comparisons refer to same period in 2009, except where otherwise stated. OPERATING AND FINANCIAL HIGHLIGHTS In, total gross sales, including merchandise, services and e-commerce, came to R$ 1,442.7 million, 49.6% up over the same period in 2009, while net sales grew by 67.4% to R$ 1,257.5 million. In same-store terms, gross merchandise sales, including services and e-commerce operations, increased by 48.0%, led by e-commerce, which recorded hefty year-on-year growth of 136.7%. Total operating expenses came to 18.5% of net sales, 550 bps less than in due to sales growth and synergy gains with Grupo Pão de Açúcar. EBITDA was a positive R$ 33.1 million with a 2.6% margin, a substantial improvement over 2009 and over previous quarters. Equity income, considering Globex s 14% interest in FIC, came to R$ 3.3 million. Gross profit stood at R$ million, 74.1% up on the same period last year, thanks to more advantageous negotiations with suppliers and a more profitable product mix. The Company declared a net loss of R$ 3.7 million, with a negative net margin of 0.3%, versus a net loss of R$ 35.5 million in (margin of -4.7%). Financial and Operating Highlights Gross Sales 1, % 1,047.9 Net Sales 1, % Gross Profit % Gross Margin - % 21.1% 20.3% 80 bps 26.5% Total Operating Expenses (3) (232.1) (179.6) 29.2% (240.5) % of Net Sales -18.5% -23.9% -550 bps -28.9% EBITDA 33.1 (27.3) n/a (20.4) EBITDA Margin - % 2.6% -3.6% 620 bps -2.4% Net Income (3.7) (35.5) n/a (31.3) Net Margin - % -0.3% -4.7% 440 bps -3.8% (3) Total operating expenses including selling, general and administrative expenses. Page 1 of 11

2 OPERATING PERFORMANCE The Company s operating and financial information presented herein was prepared in accordance with generally accepted accounting principles in Brazil (BR GAAP) and Brazilian Corporate Law. As of the fourth quarter of 2009, the numbers of Globex Utilidades S.A. have no longer been impacted by the results of Investcred, whose result is now recognized in the equity income line (more details in the Equity Income section). For the purposes of comparison, the comments on the operating and financial performance of Globex Utilidades S.A. are presented on a comparable basis, i.e. excluding the operating and financial results of Investcred for the first quarter of On December 4, 2009, Grupo Pão de Açúcar and Casas Bahia entered into an Joint Venture Agreement, which established the terms and conditions governing the association between Globex and Casas Bahia. On February 3, 2010, GPA and Casas Bahia informed their shareholders and the market in general of the main terms of the Provisional Transaction Reversal Agreement (APRO), entered into with CADE, the Brazilian antitrust authority. On April 13, 2010, GPA and Globex published a Material Fact in which clarified that Casa Bahia and its partners manifested their intention of reviewing the association that was the object of the Joint Venture Agreement. GPA and Globex believe said Joint Venture Agreement to be valid and effective for all intents and purposes and have manifested their intention of continuing the discussions in order to reach an understanding and ensure the implementation of the Joint Venture. On March 31, 2010, said transaction did not generate any accounting record. SALES PERFORMANCE Sales Performance Gross Sales 1, % 1,047.9 Net Sales 1, % In the first quarter of 2010, gross sales climbed by 49.6% over to R$ 1,442.7 million, while net sales came to R$ 1,257.5 million, up by 67.4%. In same-store terms, gross sales from merchandise, services and e-commerce operations moved up by 48.0% year-on-year. The Company s improved performance in comparison to 3Q09 and 4Q09 (+6.8% and +23.0%, respectively) indicated a positive trend and was better than the Company expected. Page 2 of 11

3 The main sales drivers were: (i) a focus on the stores, with differentiated customer service and the greater availability of products and credit; (ii) an increased media presence; and (iii) accelerated consumption due to the end of the IPI (federal VAT) reduction on white goods and furniture on March 31, E-commerce recorded strong growth, ratifying the consolidation of the channel s restructuring and the pillars of the business, namely: (i) an operational structure dedicated to on-line operations; (ii) investments in competitiveness; and (iii) a technological platform dedicated to on-line operations and which undergoes continuous development in order to meet sector demands. On-line operations are geared towards gaining market share, increasing profitability and cementing client loyalty. GROSS PROFIT Gross Profit Gross Profit % Gross Margin - % 21.1% 20.3% 80 bps 26.5% Gross profit stood at R$ million, 74.1% up on the same period last year, with a 21.1% gross margin, an 80 bps improvement. The increase was chiefly due to: (i) more advantageous negotiations with suppliers; and (ii) a more profitable product mix. TOTAL OPERATING EXPENSES Operating Expenses Selling Expenses (182.6) (147.1) 24.2% (194.9) Gen. and Adm. Expenses (49.5) (32.6) 52.0% (45.6) Total Operating Expenses (232.1) (179.6) 29.2% (240.5) % of net sales -18.5% -23.9% -550 bps -28.9% (3) includes provision for doubtful accounts and reovery in credits in compensation. (4) includes management compensation. Total operating expenses selling, general and administrative expenses) came to R$ million, 29.2% up on, substantially less than the 49.6% upturn in gross sales in the same period, reflecting gains in synergy with Grupo Pão de Açúcar, thanks to more streamlined back-office operations, which reduced these expenses by 550 bps as a percentage of net sales. Page 3 of 11

4 EBITDA a EBITDA EBITDA 33.1 (27.3) n/a (20.4) EBITDA Margin - % 2.6% -3.6% 620 bps -2.4% In the first quarter, EBITDA was a positive R$ 33.1 million (margin of 2.6%), versus a negative R$ 27.3 million in. The EBITDA performance was chiefly the result of substantial sales growth, increased credit in the stores and the improvement in the gross margin, in turn due to advantageous negotiations with suppliers, a more appropriate product mix and greater control over expenses. FINANCIAL RESULT Financial Result Financial Revenue % 6.6 Financial Expenses (31.8) (16.5) 92.5% (17.9) Financial Result (27.1) (10.0) n/a (11.3) In the first quarter, the net financial result was R$ 27.1 million negative, versus a negative R$ 10.0 million in, primarily due to the interest on the increased volume of receivables in comparison to the same period last year. a EBITDA corresponds to earnings before income tax and social contribution, net financial result, depreciation and amortization. EBITDA is included in this document in order to provide a means of evaluating cash flow from operations. EBITDA is not recognized by generally accepted accounting practices (GAAP) and should not be compared with the EBITDA disclosed by other companies. Nor should it be considered as an alternative to net operating income or as a more efficient measure of liquidity than operating cash flow, which are determined in accordance with BR GAAP. EBITDA provides additional information on our capacity to settle debt, carry out investments and cover working capital needs, as it is a metric required and used by investors. The EBITDA calculation is provided on page 12, in the Income Statement tables. Page 4 of 11

5 Net Debt Conciliation - Retail Operations 03/31/ /31/2009 Gross Debt (257.6) (109.5) Short Term (66.9) (61.4) Long Term (190.7) (48.1) Cash and Cash Equivalents Securities Net Debt (146.3) (23.4) EQUITY INCOME On September 30, 2009, GPA and Itaú Unibanco Holding S.A. entered into an agreement to leverage the sales of Ponto Frio and increase profitability by adopting a policy involving stringent credit granting criteria, differentiated payment conditions and the pursuit of synergies. On December 31, 2009, pursuant to the joint venture agreement, the Group s financial companies were subjected to a corporate restructuring through a partial spin-off of the net assets of Investcred (BINV) based on the balance sheet of September 30, 2009, and the incorporation of the spun-off portion by FIC. This process is currently awaiting approval from the Brazilian Central Bank. Consequently, as of October 1, 2009, BINV came entirely under the management of FIC and ceased to be consolidated in the financial statements of Globex, being recognized by the equity income method. GPA now retains a 36% direct interest in FIC, while Globex retains a 14% stake. The Group s consolidated interest in FIC remains at 50%. In the first quarter, equity income, considering Globex s 14% interest in FIC and 50% interest in the remaining equity of BINV, was R$ 3.3 million, thanks to rigorous credit granting criteria and the acceptance of Ponto Frio cards in Grupo Pão de Açúcar stores and vice-versa. Page 5 of 11

6 NET INCOME Net Income Net Income (Loss) (3.7) (35.5) n/a (31.3) Net Margin - % -0.3% -4.7% 440 bps -3.8% In the first quarter, the Company declared a R$ 3.7 million net loss, a R$ 31.8 million improvement over the loss recorded in. The recovery was basically due to the operating improvements commented on previously. INVESTMENTS In the first quarter, the Company invested R$ 4.7 million, versus R$ 17.0 million in. The reduction was due to the Company s decision to concentrate first on increasing profitability within the turnaround process before resuming store openings. The main highlights of the quarter were: R$ 1.3 million in store expansions (preparing for future openings); R$ 2.2 million in renovations; and R$ 1.3 million in infrastructure (IT and logistics) and others. Page 6 of 11

7 Consolidated Income Statement Based on Law 11,638/07 Reported by Segment - Retail Investcred Consolidated Gross Sales Revenue 1, % - - 1, , % Net Sales Revenue 1, % - - 1, % Cost of Goods Sold (992.2) (598.9) 65.7% - (12.1) (992.2) (611.0) 62.4% Gross Profit % % Selling Expenses (182.6) (147.1) 24.2% - (47.8) (182.6) (194.9) -6.3% General and Administrative Expenses (49.5) (32.6) 52.0% - (13.1) (49.5) (45.6) 8.4% Total Operating Expenses (232.1) (179.6) 29.2% - (60.9) (232.1) (240.5) -3.5% Operating Income before Depreciation (2) and Financial Revenues (Expenses) - EBITDA 33.1 (27.3) n/a (20.4) n/a Depreciation (13.5) (12.2) 10.0% - (0.0) (13.5) (12.3) 9.8% Operating Income before Taxes and Financial Revenues (Expenses) - EBIT 19.7 (39.5) n/a (32.6) n/a Financial Revenue % % Financial Expenses (31.8) (16.5) 92.5% - (1.4) (31.8) (17.9) 77.8% Net Financial Revenue (Expenses) (27.1) (10.0) n/a - (1.2) (27.1) (11.3) n/a Equity Income Result 3.3 (0.1) n/a (0.1) n/a Result with Permanent Asset Other Operating Revenue (Expenses) (9.1) (1.6) n/a (9.1) (1.5) n/a Operating Income before Income Tax (13.1) (51.3) n/a (13.1) (45.5) n/a Income Tax n/a - (1.5) n/a Net Loss (3.7) (35.5) n/a (3.7) (31.3) n/a % de Vendas Líquidas Gross Profit 21.1% 20.3% 21.1% 26.5% Selling Expenses -14.5% -19.6% -14.5% -23.4% General and Administrative Expenses -3.9% -4.3% -3.9% -5.5% Total Operating Expenses -18.5% -23.9% -18.5% -28.9% EBITDA 2.6% -3.6% 2.6% -2.4% Depreciation -1.1% -1.6% -1.1% -1.5% EBIT 1.6% -5.3% 1.6% -3.9% Financial Revenues (Expenses) -2.2% -1.3% -2.2% -1.4% Equity Income Result 0.3% 0.0% 0.3% 0.0% Result with Permanent Asset 0.0% 0.0% 0.0% 0.0% Other Operating Revenue (Expenses) -0.7% -0.2% -0.7% -0.2% Operating Income before Income Tax -1.0% -6.8% -1.0% -5.5% Income Tax 0.7% 2.1% 0.7% 1.7% Net Loss -0.3% -4.7% -0.3% -3.8% (2) Total operating expenses include selling, general and administrative expenses Page 7 of 11

8 Balance Sheet - Globex Consolidated (R$ million)(1) ASSETS 03/31/ /31/2009 CURRENT ASSETS 1, ,416.1 Cash and Equivalents Accounts Receivable Related Parties Other Accounts Receivable Interest on Equity and Dividends Receivable Recoverable Taxes Inventories Securities Deferred Income Tax and Social Contribution Prepaid Expenses NON-CURRENT ASSETS Long Term Accounts Receivable Judicial Deposits Recoverable Taxes Deferred Income Tax and Social Contribution Other Accounts Receivable Investments: Stake in Subsidiaries Other Property and Equipment Intangible TOTAL ASSETS 2, ,437.5 LIABILITIES AND SHAHOLDERS' EQUITY 03/31/ /31/2009 CURRENT LIABILITIES 1, ,502.2 Merchandise for Resale Loans and Financing Interest on Equity and Dividends Payable Accounts Payable Subsidiaries Material and Services Provision for Restructuring Other Wages, Taxes and Charges Payable Dividends Payable Provision for Income Tax and Social Contribution Provision for Contingencies Taxes Payable - PAES Tax Installments 3.1 NON-CURRENT LIABILITIES LONG TERM LIABILITIES Loans and Financing Provision for Contingencies Taxes Payable - PAES Debt with Related Companies Tax Installments 42.9 Other SHAREHOLDERS' EQUITY Capital Stock Capital Reserve Profit Reserve (330.5) (328.3) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 2, ,437.5 Page 8 of 11

9 Statement of Cash flow (R$ - million) (1) 03/31/ /31/2009 Net loss for the fiscal year (3.7) (31.3) Adjustments to net loss - - Depreciation and amortization Equity Income Results (3.3) 0.1 Deferred income tax and social contribution (12.0) (18.8) Adjustment to Present Value Interest and Monetary variations Provision for contingencies, net Result Law 11,941 - Installments Provisioned compensation based on shares Provision for doubtful accounts Provision for losses in PP&E and intangible (7.1) - Provision for restructuring (0.7) - PP&E write-off (0.5) - Other Adjusted Net Income (Loss) 19.6 (6.6) (Increase) decrease in operating assets Accounts receivable Other Accounts receivable 6.4 (0.6) Recoverable Taxes (44.1) 2.4 Inventories Prepaid Expenses (27.6) (11.4) Securities (5.8) 4.9 Judicial Deposits (7.8) (11.1) Other asstes Increase (decrease) in operating liabilities (261.3) (364.6) Suppliers (250.3) (208.6) Account payable 63.7 (87.9) Wages, income tax and social contribution taxes payable (11.7) (63.6) Contingencies (64.7) - Other liabilitites 1.7 (4.5) Net cash flow generated (used) in operating activities (120.3) 48.6 Investing activities - - PP&E and intangible (8.4) (4.6) Sale of goods related to PP&E Capital transfer to subsidiary - (0.2) Net cash flow generated (used) in investing activities (6.6) (4.8) Fincancing activities - - Loans and Financing: - - Additions ,062.0 Payments (39.8) (8,140.1) Net cash flow generated (used) in financing activities (78.1) Page 9 of 11

10 Breakdown of Gross Sales by Format (R$ million) ¹ 1st Quarter 2010 % 2009 % Store Chain 1, % % 37.8% Wholesale % % 48.6% Internet % % 136.7% Services % % 99.2% Globex Utilidades S.A. 1, % % 49.6% Breakdown of Net Sales by Format (R$ million) ¹ 1st Quarter 2010 % 2009 % Store Chain % % 53.2% Wholesale % % 65.0% Internet % % 177.9% Services % % 101.0% Globex Utilidades S.A. 1, % % 67.4% (1) Totals and percentages may not agree due to rounding up or rounding down. Sales Breakdown - Parent Company (% of Net Sales) (1) st Quarter 1st Quarter Cash 34.2% 49.6% Third-party Cards 42.9% 28.2% Flex CARD + FIC 20.3% 16.8% Credit 2.6% 5.4% Payment Books 2.6% 5.1% Post-dated Checks 0.0% 0.2% (1) Total may not tally as the figures are rounded off. Store per Format Digital Street Shopping Ponto Frio (total) Sales Area (m²) Number of Employees 12/31/ ,442 9,587 03/31/ ,442 8,874 Page 10 of 11

br/ir SERVICES PROVIDED BY THE INDEPENDENT AUDITORS "The Company did not hire from Ernst & Young Auditores Independentes S.S., its external auditor, services other than independent audit.

11 Disclosure Events Conference Call (Portuguese/English) Date: Tuesday, May 11, 2010 Time: 10:00 a.m. (Brasília) / 9:00 a.m. (NY) Phone: +1 (866) (US) +55 (11) (other countries) Code: GPA Replay As of May 11, 2010 Phone: +55 (11) Code: GPA SERVICES PROVIDED BY THE INDEPENDENT AUDITORS "The Company did not hire from Ernst & Young Auditores Independentes S.S., its external auditor, services other than independent audit." CONTACTS Investor Relations Department Phone: + 55 (11) Fax: +55 (11) gpa.ri@grupopaodeacucar.com.br DISCLAIMER This document includes forward-looking statements based on management s current expectations regarding the prospects and trends of the Company s businesses. Such opinions are subject to risk and uncertainties since the estimates and assumptions on which they are based may be affected by innumerable factors. In light of the risks and uncertainties described herein, these forward-looking statements may not materialize. Consequently, shareholders and investors should not make any investment decision based on the estimates, forecasts and forward-looking statements contained herein. EBITDA corresponds to earnings before income tax and social contribution, net financial result, depreciation and amortization. EBITDA is included in this document in order to provide a means of evaluating cash flow from operations. EBITDA is not recognized by generally accepted accounting practices (GAAP) and should not be compared with the EBITDA disclosed by other companies. It should not be considered as an alternative to net operating income or as a more efficient measure of liquidity than operating cash flow, which are determined in accordance with GAAP. EBITDA provides additional information on our capacity to settle debt, carry out investments and cover working capital needs. Net debt is included in this document because of its frequent use by equity analysts, investors and others who are interested in the companies that operate in our segments. Net debt is not recognized by BR GAAP and should not be considered as a substitute for net income as an indicator of operating performance or a substitute for cash flow as an indicator of liquidity. Since there is no standardized definition of net debt, our net debt may not be comparable with other similar indices used by other companies Page 11 of 11

2Q10 Results July 28, 2010

2Q10 Results July 28, 2010 Disclaimer The numbers related to Grupo Pão de Açúcar s operating and financial performance commented on below are presented: (i) on a consolidated basis, which includes the