Compensation and benefits

The pay strategy of our Companies is anchored in four principles that reflect our responsibility as a benchmark employer:

• ensuring a dignified standard of living by adopting policies that provide an adequate and sustainable income to support the needs of employees and their families;

• aligning pay with best market practices, recognising different levels of functional responsibility, performance and potential, and ensuring that salary structures are based on equity and meritocracy;

• promoting a culture of recognition that values results, attitudes and behaviour in a structured, meaningful and consistent manner, reinforcing both individual and collective commitment;

• defining flexible and adaptable remuneration models that respond to different needs and expectations, enabling the gradual personalisation of remuneration packages throughout the employee life cycle.

Take-home income

We guarantee competitive salaries for all employees, ensuring a decent standard of living adjusted to the socio-economic context in each country in which we do business. Entry-level salaries are always set above the national minimum wage (NMW) in each country, reinforcing our commitment to ensuring adequate remuneration aligned with recognised benchmarks.

In 2025, national minimum wages kept increasing in the countries where we operate, with Poland standing out. In that country, the minimum wage rose by 9% compared to 2024, representing a cumulative increase of around 80% since 2020. Colombia had a new significant increase in the national minimum wage of more than 10% compared to the previous year. In all the countries where we operate the take-home income¹ of our employees remained above the national minimum wage.

Our policies include regular salary reviews covering most employees, ensuring steady growth in average salaries, and maintaining a positive differential relative to the national minimum wages in each country where we operate. In 2025, average pay increased in most Companies, up to 8% year-on-year.

Recognition

In 2025, we reinforced our investment in recognition systems both by improving performance bonuses, individual and team incentives and by introducing new mechanisms. Ara, for instance, revised the structure of the monthly store and distribution centre bonuses, simplifying the model and enhancing its attractiveness, making it a more effective tool for recognising productivity. At Ara’s stores, the bonus scheme was extended to include all operators, further strengthening the link between performance and reward.

In 2025, we invested 361.1 million euros in recognition measures, nearly 7.5 million euros more than in the previous year. This is the largest investment the Group has ever made in recognition measures, reflecting their strategic importance in valuing our people.

Among key measures applicable to all employees, regardless of working hours, we highlight:

• 144.9 million euros in awards linked to the performance of the Companies and the Group, including an extraordinary award paid to over 93,000 employees.

• 180.2 million euros in awards and bonuses related to sales performance, non-absence and other indicators.

• 8 million euros in seniority bonuses, recognising the loyalty and commitment of employees.

Additionally, the Board of Directors granted an exceptional reward during Christmas season to operations employees in Poland and Portugal, recognising the dedication and commitment shown by the teams. This exceptional reward involved an investment of 28 million euros (19.5 million in Poland and 8.5 million in Portugal) and was awarded to over 108,000 employees.

In 2025, we opened a new chapter in the way we recognise our people, strengthening the personalisation of our approach to recognition with the introduction of a new sabbatical leave policy in Portugal and Poland. Under this policy, employees at certain levels of seniority may choose, from among different recognition options, to take a break from their professional activity. Through this initiative, we reinforce our commitment to valuing long-term career paths, while simultaneously promoting a culture of greater balance and well-being for our people.

Benefits

Our employee value proposition includes additional benefits that enhance our pay policy and better meet individual needs. Depending on their level of responsibility, employees have a package that can include life insurance, health insurance, travel accident insurance, and a pension plan. These benefits are complemented by work tools that make it easier for employees to perform their duties, in addition to a wide range of family and well-being support measures.

We also offer Bolsa Flex, a flexible benefits plan that allows employees to allocate a pre-determined amount to different options tailored to their preferences, such as a transport pass, training or childcare vouchers. In 2025, Bolsa Flex was available to 5,392 Pingo Doce, Recheio, JMA and Holding employees. Similarly, Hebe employees can allocate part of the sum from the Social Fund (a legally required mechanism in Poland) to over 2,660 available options, giving them complete flexibility over how to use their money.

¹ Comparing the lowest monthly income of the lowest remuneration category, equivalent to full-time working hours, excluding trainees and apprentices, with the applicable national minimum wage pursuant to the laws in each country and/or by collective bargaining, where applicable. Take-home income is calculated based on the lowest salary, plus any established additional payments that are guaranteed to all employed workers. In Portugal, this includes the entry base salary and meal allowance. In Poland and Slovakia it includes the entry base salary and presence allowance, in Colombia it includes the entry base salary, meal allowance and transport allowance. We consider that Czechia and Morrocco, which account less then 0.1% of our total workforce, are not yet sufficiently representative to calculate this indicator.