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Start of Coverage: 22-02-2011

Resume of the last report made by this analyst

In our view, Jerónimo’s valuation is still unappealing, trading as it is at a c.25% premium to its peers (25x P/E 17e), which we deem unmerited taking into account its maturing growth profile, execution risk and stagnant margins (EBITDA margin FY16 of 5.9% vs. 7.0% 2003-16 avg.). We therefore rate it Underperform with a new TP of EUR13.3/share.

Analyst: Juan Ros Padilla

e-mail: juan.r_padilla@bbva.com

The information presented herein refers to recommendations issued by analysts that follow Jerónimo Martins’ share. Any opinions, estimates or forecasts made by these analysts are theirs alone and do not represent opinions, estimates or forecasts of Jerónimo Martins or its management.

The provision of this information by Jerónimo Martins does not constitute any proposal, recommendation or suggestion to buy, to sell or to keep shares in Jerónimo Martins. Jerónimo Martins does not guarantee that the information made available herein is permanently updated or that it contains all the opinions issued about Jerónimo Martins’ share. It should be noted that estimates are, by definition, forward-looking and are therefore subject to risks, uncertainties and changes.

In any case, the information presented herein does not replace the reading and should take into account the full content of the analysis behind the recommendations at stake. Neither Jerónimo Martins nor its management shall be liable for any errors, inaccuracies or omissions contained in said analysts’ opinions or for any actions taken in reliance on those opinions.