Deutsche Bank – Global Consumer & Food Retail ... - Groupe Casino

DEUTSCHE BANK GLOBAL CONSUMER& FOOD RETAIL CONFERENCEJune 18, 2008

2007 FINANCIAL HIGHLIGHTSConsolidated net sales€24,972m% change vs. 2006+11.0%EBITDA €1,799m +15.3%Trading margin4.8%vs. 4.6% in 2006Trading profit €1,196m +14.7%Attributable net profit€664mvs. €436m in 2006+52.4%Net debt€4,410mvs. €4,390min 2006Net debt/EBITDA2.45xvs. 2.81x2

A STRONGER PROFITABLE GROWTH PROFILESALES BY REGIONORGANIC SALES GROWTH2005 200711,2%OtherInternational98EmergingmarketsFrance127927652,3%3,8%1,3%1,8%6,4%2004 Q1 08 Faster organic growthGroupFranceInternational Remodelled asset portfolio• Increased revenue contribution from International operations…• …refocused on high potential countries (Brazil, Colombia, Thailand) In France• Effective differentiation strategy with revenue up 3.1% excluding FP/LPin 2007• Sales revitalization plans at Franprix/Leader Priceleading to an upturn in sales as from the fourth quarter3

A STRONGER PROFITABLE GROWTH PROFILEOPERATING MARGIN2007 EBITDA2005 2007OtherHypermarkets5,0%4,5% 4,8% 4,9%4,5%ThailandFranprix3,1%ColombiaLeader PriceBrazilGroupFranceInternationalMercialysSuperettesMonoprixCasino SM An aligned and balanced earnings profile, with 10 main business unitsthat all make a significant contribution to EBITDA International trading margin is moving towards the French margin Stable operating margin in France in a competitive environment• Favourable impact of brand mix and product mix• Costs kept under control thanks to Operational Excellence programme4

FRANCE: FROM MASS MARKET TO PRECISION RETAILINGInternational: a focused and fast-growing portfolioConclusionAppendices

FRANCE’S THIRD LARGEST FOOD RETAILER 2007 Total BusinessVolume (1) : €21.2bn 13% market share - food (2) A balanced businessportfolio covering allformats Over 8,000 storesFormatHypermarketsSupermarketsCitymarketsConvenience storesNationalConvenience storesParis areaNumber ofstores (3)118 (4)3793306,040652Discount489(1) excl. other activities (2) source: TNS (3) at End 07 (4) excl. international affiliates6

FRANCE: FROM MASS MARKETTO PRECISION RETAILING The shopping experience is changing Lifestyles are increasingly individualised, partly due to changingsocio-demographic trends New retailing concepts are gaining ground The product offering needs to be more varied and bettersegmented, to keep pace with evolving consumer tastesand behaviours7

SHIFTING SOCIO-DEMOGRAPHICS% OF THE POPULATIONAGED 60 AND OVER21.8%32%45,0%HOUSEHOLD COMPOSITION43% - 46%2.482.432,62,520.6%40,0%2.332,417%19%35,0%30,0%25,0%28.5%31.9%29.8%2.04 - 2.082,32,22,121980 1990 2000 2008205020,0%1995 2000 20052030Number of single-person households (%)Average number of people per household1,9Source: Insee Greying population In France, a third of thepopulation will be over 60in 20508 Families are shrinking Fewer households with 4 ormore members: 20% in 2007 vs.24% in 1995 More single-person householdsand single-parent families

NEW NON-FOOD RETAILINGCONCEPTS ARE GAINING GROUND Ongoing development of speciality chainsMarket share2007 vs. 2003ApparelWhite goodsHypermarketsSpeciality chains- 3.5 pts+ 6.7 ptsSource: TNS- 3.5 pts+ 2.5 ptsSource: Gfk Emergence of the Internet as a viable retailing channelMarket share2007 vs. 2005Food retailersDVDs, CDs, books- 7 ptsSpeciality chainsInternetSource: Gfk+ 5.4pts+ 1.7ptTwice as many online buyersin 2007 compared with 2004:20 million in Q4 07 vs.10.6 million in Q4 049

HYPERMARKETS ARE MORE AND MORECHALLENGED IN FOODSupermarkets34%Sales breakdownby formatFrench Food Retailing marketHypermarkets51%Same-store salesCAGR 2001-20070.9%0.2%Market shareof discount retailers9%13.2%Discount 14%Supérettes 1%Source: TNS World Panel- LTM P5 08SMSource: NielsenHM>6,500 sq.m2000 2007Source: TNS Worldpanel Hypermarkets are still the dominant food retailing format in France… … but Supermarkets are structurally outperforming hypermarkets … and Discounters are rapidly catching up10

MARKET GROWTH IS BEINGLED BY PRIVATE LABELS…NATIONAL BRAND AND PRIVATE LABELSALES IN HM/SM140144,4130120110100100107,5Private-label sales havegrown 7 times fasterthan national brands902000 2001 2002 2003 2004 2005 2006 2007MN MDD36PRIVATE LABELS’ SHARE OF HM/SM MARKETIN VOLUME AND VALUE37312626,227Source: IRI –Total FMCG YTD June211621,22000 2001 2002 2003 2004 2005 2006 2007Volume Value11

A SUCCESS BASED ON AN INCREASINGLY SEGMENTEDOFFER ALIGNED WITH CONSUMER EXPECTATIONSHealth & NutritionPractical &Time-SavingEnvironmentallyfriendlyGourmetFair Trade12

TODAY, THE GROUP HAS A FAVOURABLEBUSINESS MIX IN FRANCE (1/2)1997 CONSOLIDATED SALES:€10.1bn*2007 CONSOLIDATED SALES:€17.9bn*FP/LP6%Superettes10%Casino SM25%Other businesses6%Géant HM53%FP/LP22%Monoprix10%CdiscountOther businesses4%4%Géant HM34%Superettes9%Casino SM17%A strong presence in the most buoyant formats….• Discount, Convenience and e-tailing businesses currently account forover 60% of sales in France versus just 40% in 1997* 1997 French GAAP; 2007 IFRS14

TODAY, THE GROUP HAS A FAVOURABLEBUSINESS MIX IN FRANCE (2/2)CONTRIBUTION TO2007 TRADING PROFIT - FRANCE2007 OPERATING MARGINOther7%19%HypermarketsFrance: 4.9%5.7%6.9%FP/LP31%2.7%43%ConvenienceHypermarketsConvenienceFP/LP31%which are also the most profitable …• The Convenience and Discount formats currently account for 74% oftrading profit generated in France15

OUR Q1 PERFORMANCE ATTESTS TO THISSTRONG POSITIONINGORGANIC SALES GROWTH2007 Q1 0818.1%10.1%8.5%11.2%1.8%5.3%5.8%4.1%3.8%1.7%1.0%0.1% 0.1%FranceCasino SM-2.6%FP/LPMonoprixSuperettesGéantCasinoOtherbusinesses Dynamic supermarket banners: Casino SM and Monoprix Robust sales growth at Franprix/Leader Price (8.5%), confirmingthe effectiveness of the two banners’ revitalization plans Continued strong growth in revenue from Other businesses16

AN OFFERING FOCUSED ON THE MOSTPROMISING SEGMENTS Casino is France’s leading retailer in termsof private-label penetration rates in FMCG• Private label products > 50% of total Group volumes• Very high penetration rates across all formats• Monoprix: around 30%• Géant Casino & supermarkets: > 40%• Superettes & Franprix: > 50%• Leader Price: 100% Enhanced and expanded fresh-food section• New Fruit & Vegetable concept deployedin the hypermarkets and supermarkets• “Terre et Saveur” brand strengthened withthe Casino signature• Development of eco-label product lines17

MORE PERSONALISED MARKETINGTHROUGH DUNNHUMBY An extensive customer database developed throughthe loyalty programme• 3.7 million card holders (hypermarkets + supermarkets)• Member of the S’miles network (13 million card holders) The partnership with dunnhumby is a way to improve our customerintelligence (lifestyles, expectations, etc.) in order to tailor our valueproposition to each type of shopper in each storePricing policy Assortment Advertising18

CONTINUED SUSTAINED EXPANSION IN THEMOST BUOYANT FORMATS Maintaining an active expansion strategy for Casino Supermarketsand Monoprix Development of the Franprix network• In the Paris area and the main regional cities• Target of 1,000 stores in 5 years’ time vs. 652 at end-2007 Accelerated expansion of the Leader Price network• to double the store base over the next 5 years(from 489 stores at end-2007) Deployment of the Alcudia plan for the hypermarkets• Increase the sites’ critical mass and therefore the footfalls• By doubling retail space in the shopping centres and optimising assets19

France: from mass market to precision retailingINTERNATIONAL: A FOCUSED AND FAST-GROWING PORTFOLIOConclusionAppendices

OUR BANNERS HAVE LEADERSHIPPOSITIONS AND DEEP LOCAL ROOTSSalesSales#1€0.6bn€1.5bn€0.1bn#1€2.4bn#2€5.6bn*#2#1€0.3bn€0.3bn*#1 in South America> 1,400 stores (incl. 257 hypers)* 100% basis21

DYNAMIC GROWTH IN SOUTH AMERICA ANDASIA11,2%2007 ORGANIC GROWTHIN SALES14,8%9,8%2006 20072006 2007TRADING PROFITMARGIN5,3%4,5%4,1%3,9%3,9%3,3%6,2%5,6%1,7%InternationalSouthAmericaAsiaIndianOceanInternationalSouthAmericaAsiaIndianOcean Double-digit organic growth in South America and Asia• Solid sales growth at CBD due to a 3.4% increase in same-store sales and anaggressive expansion strategy - Sustained very strong growth in same-store sales inArgentina, Venezuela and Uruguay• Sales up 6.4% at Big C (Thailand), led by a dynamic expansion strategy (fivehypermarkets opened in 2007) Significant improvement in trading profit margin in both priority regions• South America: positive impact of consolidating Exito & solid margin performanceacross the region• Tangible improvement in trading profit margin at BigC22

CBD: A MULTI-FORMAT RETAILER 2 nd largest food retailer in Brazil• 2007 total net sales: € 5.6bn• A multiformat retailer: 575 stores with a strong presence in SaoPaulo and Rio de Janeiro states• acquisition of Assai in 2007 has taken CBD into the highly promisingcash and carry segment Improve competitiveness• price optimization,• assortment review,• development of consumer finance, increase in non food sales... Improve profitability• Operating expenses reduction programme• Restructuring Sendas operations24

BIG C: THE “THAI” RETAILER A major retailer in Thailand• 2007 total net sales : €1.4bn• N°2 retailer on the large trading formats• 54 hypermarkets with 514,000 square meters of selling space Strengthening the competitive edge of Big C brand:• “thainess’’,• good price image Further expansion with 8 openings planned in 2008 Deploying the dual Retailing-Property Management model• developing and enhancing the value of shopping centres• Big C has as many shopping centres as hypermarkets25

INTERNATIONAL: STRENGTHENINGLEADERSHIP POSITIONSSustained strong expansion in key countries (Brazil, Colombia and Thailand),in both conventional and new formatsFaster rationalisation of the banner base in Brazil and ColombiaAdditional acquisitions as opportunities arise (e.g.: Assai in Brazil)Developing, along French lines, a dual Retailing–Property Management modelAn increased contribution to sales growth and trading profit26

France: from mass market to precision retailingInternational: a focused and fast-growing portfolioCONCLUSIONAppendices

SOLID FUNDAMENTALS TO DRIVE FASTERORGANIC GROWTH A well positioned asset portfolio• A favourable format mix in France• High growth potential of Franprix and Leader Price banners• An international geographic footprint refocused on high potentialcountries(Brazil, Colombia and Thailand) Efficient growth drivers• In France, implementation of a targeted marketing strategy for eachbannerand ramp-up of differentiation drivers• In international operations: faster growth and development of the dualRetailing – Property management model A more aligned and balanced profitability profile• International trading margin is converging towards the French margin• 10 business units, each of them contributing significantly to GroupEBITDA28

PROPERTY MANAGEMENT: AT THE HEART OF THEGROUP’S PROFITABLE GROWTH STRATEGY Property assets, a significant component of the Group’s value: €7.2bn(end-07) An active asset optimisation strategy in place since 2005• Constantly manage the portfolio to sell and lease back mature property…• …and acquire assets with high value potential The dual retailing – property development model: a priority for expansion ininternational markets• Helping to increase store traffic and thus supporting the development of theGroup’s retailing activities…• …while capturing the full value of our property assets Enhancing the value of existing assets: the Alcudia plan en France29

2008 OBJECTIVESFaster organic growth in salesFurther growth in trading profit30

France: from mass market to precision retailingInternational: a focused and fast-growing portfolioConclusionAPPENDICES

A STRONGER FINANCIAL POSITIONen millions d'euros 31 Dec. 2005 31 Dec. 200631 Dec. 2007Equity5,6385,9727,124Net debtOf which minority shareholders’ put options5,4441,0314,3908894,410706Net debt / EBITDA 3,82x 2,81xGearing 74%96%2,45x62%Net debt / EBITDA was reduced to 2.45x from 3.82x in 2005 in line withobjectives Gearing reduced to 62% from 96% in 2005 €2.5bn in assets have been sold since the beginning of 2006The Group has restored its financial flexibilityand is committed to maintaining strict financial discipline32

AN ACTIVE ASSET OPTIMISATION STRATEGYSINCE 2005StandardPropertyOffices andWarehousesInvestmentPropertyShoppingMallsStores/Undeveloped LandMature orstrategicpropertiesStrategic PropertyWith undevelopedland oropportunities forextension2005Head officesoldIPO2006WarehousessoldPolish storeproperties sold2007* Related to supermarkets and superette properties in France and store properties in La Reunion33OPCI*AlcudiaPartnershipw/Whitehall inCentral Eur.

PROPERTY ASSETS ARE A SIGNIFICANTCOMPONENT OF THE GROUP’S VALUEFranceInternationalStores(mainly hypermarkets)€3.9bn€1.5bn€5.4bnShoppingmalls€1.3bn€0.5bn€1.8bn€5.2bn€2bn€7.2bnTotal value has increased since 31 December 2006,despite the €635m in disposals in October 2007NB: These estimates are based on appraised values (excluding Mercialys, valued based on market capitalisation) multiplied byCasino’s stake in the companies concerned34

PUTSin €mCompany% capitalPuts included in net debtValueat 31 Dec. 2007706Franprix- LeaderPriceExitoUruguay (Devoto)Assai (CBD)Monoprix (1)Franprix- LeaderPriceUruguay (Disco)Sendas (CBD) (2)Franprix Holding 95% 100%& Leader Price Holding 75% 100%Majority-owned franchised storesCarulla Vivero put (77.5% to 100%)60% 100%Off-balance sheet puts50% 100%Minority-owned franchised stores42.6% 100%4209814811291,3208503354491(1)Value based on minimum indexed price. The actual price paid may be higher(2)Put on CBD accounted for at 34.0%35