Press - 2010

With effect from the 1st January 2011, EMC Distribution, the central purchasing division of the Casino Group in France, will be joining EMD, a European centralised purchasing group.

EMC Distribution is one of the largest centralised purchasing offices in France, notably for own branded products, thanks to the consolidation of the Casino, Monoprix and Leader Price brands. Through its partnership with EMD, the Group’s central purchasing service will improve the competitiveness of its purchases. The 15 members of EMD cover approximately 500 key players in food distribution and almost 150,000 points of sale.

This partnership will allow EMD to develop its European leadership. The addition of the Casino Group occurs at a key stage where EMD is reforming its operating methods and management systems under a new leadership team. This new structure, designed not to be top heavy, will ensure efficient coordination and communication between each of the purchasing structures.

Concerning Casino
A multi-format Group, the Casino Group is one of the world leaders of food trade.
Its performance, which has steadily progressed over several years, results from targeted market positioning and a capacity of anticipating evolving changes in life-style and consumption. With a turnover of 26.7 billion euros, the Casino Group includes almost 11,000 stores, of which 9,364 are in France, and 200,000 employees around the world.

Concerning EMD
Present in 16 European countries, EMD is the leader in the sector of food distribution purchasing. With a potential turnover of close to 130 billion euros, the centralised purchasing strengthens its contracts with manufacturers of national branded products and its purchases of own branded products.

Saint-Etienne, the 20th December 2010

Press Contacts :

Image Sept
Karine Allouis et Priscille Reneaume
Tel. 01 53 70 74 21
kallouis@image7.fr – preneaume@image7.fr

Groupe Casino
Frédéric Croccel
Tel. 01 53 65 24 39
fcroccel@groupe-casino.fr

For several years, 76 Food Banks out of the 79 in the national network have counted on the stores within the Casino Group for their daily supply in basic foodstuffs of which the majority have been fresh produce. This partnership was strengthened by a national partnership contract covering food aid signed in March 2009 by Jean-Charles Naouri, Chief Executive of Group Casino, and Alain Seugé, President of the French Food Bank Federation.

This contract marks the commitment of the Casino Group, which started several years ago, in favour of Food Banks and underlines the Casino Group’s commitment to the values of solidarity which is at the heart of the company’s culture.

This year, the Casino Group anticipates a greater depth to it’s commitment to food aid thanks to the national involvement of all its banners.

• 14 Géant Casino stores, 370 Casino Supermarkets, at least 220 Franprix stores as well as Leader Price are mobilised and will participate in Food Bank collection schemes.
• A dozen associates, notably at Toulouse, Bordeaux and in the Rhône-Alpes region, have taken a day’s holiday to participate in this collection as volunteers, within the framework of leave for Solidarity Activity put in place by the Casino Group for the Food Banks.
• The network of small convenience stores like Vival and Petit Casino have equally decided to contribute.

In total 5,300 stores have been informed and mobilised, as much by Head Office as by the commercial teams and regional management on the side of the Food Banks themselves.
The involvement of all the banners of the Casino Group permitted the collection of more than 11,000 tons of produce in 2009.

Investor Relations
Nadine Coulm
ncoulm@groupe-casino.fr
+33 (0)1 53 65 64 17

Aline Nguyen
anguyen@groupe-casino.fr
+33 (0)1 53 65 64 85

Press Relations
Frédéric Croccel
fcroccel@groupe-casino.fr
+33 (0)1 53 65 24 39

Big C, a Casino affiliate, announced today it has signed a definitive agreement with Carrefour to acquire its business operations in Thailand for a total consideration of THB 35.5bn (EUR 868m)* , implying a pro forma EV/EBITDA 2010e multiple of 8.6x including run-rate synergies.

A unique opportunity to accelerate Big C’s growth and strengthen its market leadership
Carrefour Thailand operates a network of 42 stores, of which 34 hypermarkets as well as 37 shopping centers. The company is expected to generate sales of approximately THB 30bn (c. EUR 734m) sales in 2010.

Big C and Carrefour’s Thai networks present strong geographical complementarities enabling Big C to double its presence in Greater Bangkok.

With 103 hypermarkets in total and a combined 2010 estimated turnover of over THB 100bn (EUR 2.4bn), Big C will significantly expand its market position and will become the Thai co-leader in the hypermarket segment.

Deployment of Big C’s dual retail-property strategy

Carrefour Thailand operates 37 shopping centers accounting for close to 50% of the EBITDA. After the transaction, the total number of shopping centers will exceed 100 and 585,000 square meters of gross leasable area.

This enlarged portfolio reinforces Big C’s dual retail-property strategy allowing the implementation of value-creating opportunities.

A value-enhancing opportunity for Big C shareholders

The acquisition will generate significant synergies equivalent to c.1.2% of combined 2010e sales on a run-rate basis. The synergies are expected to be fully implemented by 2013.

The acquisition will be financed out of Big C’s existing cash balance resources as well as through debt financing. It should be accretive on Big C’s earnings as of next year.

It is currently expected that the closing of the transaction takes place at the very beginning of next year.
A significant milestone for Casino

“The transaction allows Casino to strengthen significantly its market position in one of its key countries. It is in line with Casino’s strategy of both selective development on high growth markets where it enjoys leadership positions, and optimisation of its asset portfolio” declared Jean-Charles Naouri, CEO of group Casino. To that respect, in addition to the €1bn asset disposal programme, Casino announces its intention to dispose assets for an amount of €700m in 2011.

Paris – 15 November 2010
Conference call

Antoine Giscard d’Estaing, CFO of Casino Group, will hold a conference call today at 9.30 am (Paris time). The conference call will be in English and will be available (simultaneously and differed) on the website: old.groupecasino.axome.cc

About
BIG C: With THb 69 bn (EUR 1.7 bn) store sales, Big C is the N° 2 player in Thailand. Big C operates 111** stores (of which 69 hypermarkets) and 69 shopping malls.

* On the basis of THB / EUR exchange rate of 40.859 as at November 12th 2010
** at November 2010

Investor Relations
Nadine Coulm
ncoulm@groupe-casino.fr
+33 (0)1 53 65 64 17

Aline Nguyen
anguyen@groupe-casino.fr
+33 (0)1 53 65 64 85

Press Relations
Frédéric Croccel
fcroccel@groupe-casino.fr
+33 (0)1 53 65 24 39

Since the 29th of October 2010, the Casino Group has offered it’s customers a new Iphone application called mCasino. This application completes a range of interactive and innovative services destined to simplify their customer’s lives while they are shopping :

• Shopping list prepared on the internet then recovered via scanner in the store
• Payment without contact by using a mobile phone
• Collection / consultation of consumer’s opinions on products in stores via interactive terminals and scanners

The launch of the application iPhone mCasino is part of the innovation strategy of the Casino group, which is at the leading edge of interactive technology with the creation of services designed to simplify customer’s shopping experiences. mCasino is the culmination of a large scale multi-channel programme initiated by the Group to offer its customers services covering the totality of electronic media throughout all of its stores.

mCasino Functionality

The iPhone mCasino application is an evolving and durable multiservice application. From its first release, the application will offer a wide range of functions.

Useful store information :

• Finding store locations by geo-localisation
• Checking opening hours and services offered
• Viewing the map

Everyday shopping management :

• Managing the shopping list
• Checking the status of orders through MesCoursesCasino.fr and adding products to the basket
• Digitalization of loyalty cards and promotional vouchers
• The calling of Casino customer services, mescoursescasino.fr et S ’Miles
• Access to customer benefits
• Checking tips and promotions
• Checking of Smiles accounts and conversion of S’Miles to gifts
• Checking and issuing customer advice on products
• Checking recipes and TV programmes « La prochaine fois c’est chez moi ».

Customers have at their disposal two ergonomic programs on their iPhone (rotating sundial or mosaic patterns) which are chosen when setting preference parameters.

Sustained 6.5% growth in third-quarter 2010 sales

Ongoing faster organic growth of 3.4% (excluding petrol)
Double-digit growth in international markets
Return to same-store growth for Leader Price

Consolidated net sales rose by a reported 6.5% in the third quarter of 2010. Changes in scope of consolidation – mainly the deconsolidation of Venezuelan operations – had a 3.3% negative impact. The currency effect was a positive 5.7%, reflecting the sharp increase in the Brazilian real, Colombian peso and Thai baht against the euro.
Petrol sales had a 0.7% positive impact on growth for the period. The calendar effect was a slightly positive 0.4% in France and was neutral at a negative 0.1% internationally.

Excluding petrol, organic growth for the period came to 3.4%, confirming the faster pace of growth observed in the previous two quarters.

In France, sales were up 0.2% on an organic basis (excluding petrol).

• Same-store sales at Leader Price returned to growth, rising by 1.1% (vs 6.1% decline in the first half) thanks to the effectiveness of the banner’s sales revitalisation programme.
• Franprix and Monoprix reported solid gains, with total sales up 4.2% and 5.9%, respectively. Casino Supermarkets and Superettes delivered satisfactory performances.
• Cdiscount enjoyed significantly faster organic growth of 18.1% during the period.
• Géant Casino’s sales fell back 4.1% on a same-store basis (excluding petrol) while the decline in footfalls slowed to 2.8% from 5% in the first half.

International operations enjoyed double-digit organic growth, at 10.2%, reflecting strong momentum in the Group’s key countries (Brazil, Colombia, Thailand and Vietnam) as well as the quality of its asset portfolio.

• South America continued to report very robust organic growth, at 12.8%, led by continued strong advances in same-store sales in Brazil (up 13,1%) and a very satisfactory performance in Colombia.
• In Asia, same-store sales rose 6.5% over the period. Big C in Thailand achieved solid same-store growth, while Vietnam continued to enjoy strong momentum.

Overall, international sales expanded by 17.0% over the period and represented 37% of the consolidated total.

Organic growth continued to gain momentum in the third quarter, confirming the effective positioning of the Group’s asset portfolio, both in France and internationally.

Casino intends to strengthen market share in France by improving the banners’ price competitiveness and speeding up the expansion of the convenience and discount networks.
Internationally, the quality of the Group’s assets is expected to drive strong, profitable growth for 2010 and beyond.

The Group will pursue its €1 billion asset disposal programme and reaffirms its objective of a net debt/EBITDA ratio of less than 2.2x at year-end 2010.

FRANCE

Sales in France rose 1.3% on an organic basis, with petrol sales adding 1.1% to growth.

• Franprix-Leader Price

Leader Price returned to same-store growth (up 1.1%), confirming the significant improvement in the sales trend observed in the second quarter. Growth was led by a tangible 2.1% increase in footfalls that attested to the effectiveness of sales initiatives implemented during the first half of the year, including measures to improve price competitiveness and stepped-up advertising. Marketing initiatives have been strengthened in the second half. Around 100 national brand products have been introduced in the integrated stores since the end of July and the assortment is being extended to include 250 national brand items, which will be available in all Leader Price stores from mid-October. The new store concept is being rolled out in line with the business plan, with 55 stores converted by end-September. In the first nine months of the year, 23 stores were opened and 18 were closed or rebannered.
Franprix’s same-store sales were stable, rising by 0.1% in the third quarter. The banner opened eight stores during the third quarter (bringing the total since January to 61) and continued to deploy the new store concept (with 152 stores converted in the first nine months of the year).

Total sales for Franprix/Leader Price contracted 3.3%, mainly as a result of the sharp drop in sales to Caillé group, which has been Leader Price’s franchisee in Reunion since the third quarter of 2009.

• Monoprix

Monoprix reported a solid 3.7% increase in same-store sales, led by robust apparel sales and a good performance in food.
A new Citymarché store was opened during the period and expansion of the new store formats continued with the opening of five Monop stores and one Naturalia store, bringing the total number opened since January to 20.
Total sales rose by 5.9%, driven by the tangible contribution of store expansion to growth.

• Casino France

 Géant Casino’s same-store sales contracted by 4.1%, excluding petrol. The decline in footfalls slowed to 2.8% in the third quarter from 5% in the second. The average basket was 1.2% lower.
Food sales were down 3.5%, versus 6.9% in the second quarter. Second-quarter price cuts led to a noticeable improvement in price competitiveness, with the banner’s IRI index down 3 points at end-August. The banner will strengthen its competitiveness in the second half of the year by leveraging promotions and loyalty programmes.
On the non-food side, Géant Casino continued to reposition the offer around the most promising categories. As a result, sales in the apparel and home segments were virtually unchanged, while sales of less promising categories, such as DVDs/games/videos and large appliances continued to be carefully scaled back. Non-food sales were down 5.5%.

Excluding petrol, Casino Supermarkets reported a 0.9% increase in same-store sales in the third quarter, versus a 1.0% decline in the first half. Three new stores were opened during the period. Total sales excluding petrol rose by 1.9%.

Superette sales rose by 0.5%, reflecting the ramp-up of the expansion programme and the end of the store-base rationalisation programme. Sixty-three stores were opened during the period, bringing to 265 the total number opened since the beginning of the year.

The Other businesses reported 12.1% organic sales growth, led by the excellent performance of Cdiscount, which enjoyed third-quarter organic growth of 18.1%. Its additional sales largely offset the decline in Géant Casino’s non-food sales.
The Group continued to promote synergies between Cdiscount and its store network. After developing a hypermarket pick-up service for Cdiscount purchases, the Group has started extending the service to Petit Casino superettes for parcels weighing under 30kg since the beginning of July. This initiative will be rolled out to all 1,900 integrated stores by the year-end and to the entire Superette network in first-half 2011.

INTERNATIONAL

International sales increased by 17.0% over the period.
Changes in scope of consolidation had a 10.2% negative impact, mainly resulting from the 1 January 2010 deconsolidation of Venezuelan operations.
The currency effect was a positive 17.1%, due to the rise in the Brazilian real, Colombian peso and Thai baht against the euro.

Organic growth in international markets remained very high at 10.2%, led by very strong 12.8% growth in South America and a robust 6.2% increase in Asia.

In South America, same-store sales rose by 10.5%, lifted by sustained growth in Brazil and the ongoing improvement of business in Colombia.

• In Brazil, Grupo Pão de Açucar (GPA) reported same-store sales growth of 13.1%. Excluding Globex, GPA’s same-store sales rose 7.8%, reflecting good performances in both food and non-food. Globex same-store sales increased by 28.5%. E-commerce sales grew at a very fast pace, above 60%. GPA total sales grew by 16.9%*.
• In Colombia, the improvement in same-store sales continued in the third quarter, with Exito reaping the benefits of successful hypermarket promotions. The banner opened two stores in the third quarter, bringing to four the total opened since the beginning of the year (of which 1 hypermarket), and stepped-up its programme of store conversions (with 23 completed to date).
• Growth in same-store sales was sustained in Argentinaand Uruguay.

In Asia, organic growth remained robust at 6.2%, fuelled by the satisfactory same-store performance of Big C in Thailand and ongoing very strong growth in Vietnam. In Thailand, Big C pursued the development of its new formats, opening two Mini Big C stores and seven Pure stores during the period.
The pace of expansion will move up a gear in the fourth quarter with the opening of three hypermarkets in Thailand (four openings in 2010) and four in Vietnam, bringing the total number of hypermarkets to 14 in this country by end-2010.

In the Indian Ocean, sales were down 0.4% on an organic basis and down 0.8% on a same-store basis.

* Data published by the company.

Main changes in the scope of consolidation
– Ponto Frio has been consolidated by the Grupo Pao de Açucar (GPA) sub-group since 1 July 2009.
– Operations in Venezuela have no longer been consolidated since 1 January 2010.

After the success of its early February 2010 exchange offer, Casino today completed another offer, launched on 20 April, to exchange its notes due 2011, 2012 and 2013.

In exchange for the tendered notes, Casino issued new notes in an amount of €508 million due November 2018 and paying interest equivalent to the Mid-Swap rate plus a spread of 160 bps. Debt repayments due 2011, 2012 and 2013 were thus reduced by respectively €156 million, €190 million and €127 million.

The two exchange offers completed by Casino since the beginning of the year, representing a total amount of around €1.3 billion, have helped to noticeably improve the Group’s debt profile and to increase the average bond debt maturity from 2.9 to 4.4 years.

The offer was managed by Barclays Bank, BNP Paribas, HSBC, JP Morgan, Santander and Société Générale.

Investor Relations
Nadine COULM, +33 (0)1 53 65 64 17, ncoulm@groupe-casino.fr
Aline NGUYEN, +33 (0)1 53 65 64 85, anguyen@groupe-casino.fr

Olivier MARCHETEAU joins Groupe Casino as Director of non-food e-commerce activities. He reports to Hervé DAUDIN, Director of Groupe Casino merchandise activities and flows. He is taking over from him as President of Cdiscount, subsidiary of Casino and will be responsible for developing the business with Emmanuel GRENIER, his Managing Director.

Olivier MARCHETEAU is 40 years old, a HEC graduate and since 2008 has been the General Public and Internet Managing Director of the Microsoft France Group. Since 2001 in the Microsoft group, he has successfully held down the jobs of MSN France Marketing Director (2001-2004), MSN/Windows Live Europe Director (2004-2006) and Managing Director of Internet Services (2006-2008).

Previously he was Assistant Manager, followed by Brand Manager at Procter & Gamble France (1994-1997). He then joined the Nike Marketing Management (1997-2000) and went on to become Marketing Director at AUCLAND.fr (2000-2001).

Frédéric CROCCEL has been appointed Director of Media Relations for Groupe Casino. He will be reporting to Adeline HALLON-KEMOUN, Communications Director for the Casino Group.

Aged 46, this graduate of the Paris IEP [Institute of Political Studies] and former journalist has worked as Communications Director in the following companies: Groupes Générale des Eaux/Vivendi, Décathlon, Areva T&D and Sonepar.

• Faster growth in the second quarter, with sales up 8.5%, or 2.9% on an organic basis (excluding petrol)
  • Strong sales growth in international markets: up 23.6%
  • Fast recovery in Leader Price sales

• Trading profit up 12.0% in the first half, or 5.7% before reclassification of the CVAE under income tax

• Underlying profit attributable to equity holders of the parent up 10.5%

“ Group sales rose significantly in the first half, lifted by brisk business outside France and the initial impact of Leader Price’s sales revitalisation plan. Most of the banners turned in a satisfactory operating performance in a sluggish economic environment in France. Our business units in key countries – Brazil, Thailand, Colombia and Vietnam- achieved remarkable results. The Group’s positioning in convenience and discount formats in France and its presence in countries with high growth potential provide a solid base for continued development” said Jean-Charles Naouri, Casino’s Chairman and Chief Executive Officer.

The financial statements for the six months ended 30 June 2010 prepared by the Board of Directors on 28 July 2010 have been reviewed by the auditors.

Consolidated net sales rose by 8.5% in the second quarter of 2010.
The positive 5.7% currency effect primarily reflected the sharp increase in the Brazilian real, Colombian peso and Thai baht against the euro during the period. The favourable impact of Ponto Frio’s consolidation by Grupo Pao de Açucar (GPA) was offset by the deconsolidation of Venezuelan operations, leading to a negative 0.9% impact from changes in the scope of consolidation.
Higher petrol prices added 0.9% to growth, while the calendar effect was a slightly negative 0.3% in France and neutral in International operations.
Organic growth excluding petrol came to 2.9% in the second quarter, confirming the acceleration recorded in the first quarter (up 2.6%) compared to full-year 2009 (down 0.1%).

FRANCE
Sales in France rose 1.1% in the second quarter.
Organic sales excluding petrol were up 0.2%, an improvement over the 0.9% decrease reported in the first quarter of 2010. This result stems primarily from an upturn in same-store sales at Leader Price. All of the convenience formats (Franprix, Monoprix, Casino Supermarkets and Superettes) continued to perform well and Cdiscount recorded double-digit organic sales growth.

Franprix-Leader Price
Same-store sales at Leader Price showed a significant improvement in the second quarter, declining by just 1.4% compared with 10.8% in the first three months of the year. The sales revitalisation initiatives deployed since the beginning of the year, such as price repositioning and stepped-up advertising, have generated positive momentum, as seen in the increase in footfalls and the improvement in average basket.
The banner has started to roll out its new store concept, with very satisfactory results. Since the beginning of the year, 31 stores have been renovated. Leader Price also pursued its expansion strategy, opening 18 stores since January, while rationalising its store base. The pace of expansion will accelerate in the second half, as will deployment of the new store concept.

Franprix’s same-store sales rose 2.0% thanks to increases in footfalls and the average basket. The banner continued to implement its new concept, with 152 stores renovated at the end of the first half. The second quarter saw intense expansion, with 38 new store openings. In all, 53 new stores have opened since the beginning of the year. The contribution from new stores rose in the second quarter, leading to a more than 10% increase in banner sales during the period.

In all, Franprix-Leader Price sales rose by 3.2% during the second quarter.

Monoprix
Monoprix’s same-store sales excluding petrol increased by 1.9%. The banner gained market share in food and recorded a good performance in non-food, despite a later start to the summer sales season (30 June 2010 versus 24 June 2009). The new formats (Naturalia and Monop’) showed good momentum. The banner also stepped up its sales initiatives, notably through its partnership with dunnhumby and deployment of a new cosmetics concept.
Monoprix’s total sales rose 4.1%, reflecting sustained expansion in the second quarter. The banner opened five Citymarché stores, four Monop’s and one Naturalia during the period.

Casino France
Géant Casino sales fell back 6.9% on a same-store basis, excluding petrol. The average basket decreased by 2.0% and footfalls contracted by 5.0%.
Food sales were down 6.9%. The gradual reinvestment of purchasing gains between March and June helped strengthen the banner’s price competitiveness, as reflected in a tangible improvement in price indices. By end-June, the IRI price indices were down 3 pts overall, and 2.4 pts in national brands.
On the non-food side, the banner continued to reposition the offer around the most promising categories, which delivered a good performance, particularly in small appliances. On the other hand, the banner continued to carefully scale back the less promising categories, like DVDs/games/videos and large appliances. Non-food sales declined by 6.8%, dampened by the later start of the summer sales.

Casino Supermarkets’ same-store sales declined by 1.0% excluding petrol during the quarter. The banner opened four new stores during the second quarter, for a total of five since the beginning of the year. Total sales excluding petrol rose 0.5% over the period.

Superette sales decreased by 1.7%. Continued rationalisation of the store base led to 71 closures during the period. At the same time, expansion gained momentum, with the opening of 103 new units.

The Other businesses (Cdiscount, Mercialys, Casino Restauration and Banque Casino) posted sales up 7.2% on an organic basis, lifted by Cdiscount’s double-digit sales growth.

INTERNATIONAL
International sales rose by 23.6% during the second quarter.
The positive 17.2% currency effect primarily reflected the sharp increase in the Brazilian real, Colombian peso and Thai baht against the euro during the period. The favourable impact of Ponto Frio’s consolidation by Grupo Pao de Açucar (GPA) was offset by the deconsolidation of Venezuelan operations, leading to a negative 2.6% impact from changes in the scope of consolidation.
Organic sales growth remained very strong, at 9.0%, impelled by sustained momentum in South America
(up 10.9%) and continued robust growth in Asia (up 5.4%).

South America
Same store sales rose 9.1%, lifted by double-digit growth in Brazil and stepped-up momentum in Colombia.

In Brazil, GPA’s same store sales increased by 11.3%*. Sales were strong in both food and non-food items. Total sales rose by 39.4%* on the consolidation of Ponto Frio, which again reported very strong growth with sales up 71.6%* during the period. In particular, electronics sales were boosted by the 2010 World Cup.

In Colombia, Exito’s same-store sales growth accelerated to 4.6%* from 2.6%* in the first quarter, reflecting the success of promotional campaigns and the development of the private label. Exito continued to expand, opening two new stores, and to rationalise its store base, with 12 conversions. Total sales in Colombia ended the quarter up 5.4%*.

Performance in Argentina and Uruguay was satisfactory.

Asia
Operations in Asia reported robust organic growth of 5.4%.
Big C in Thailand achieved satisfactory same-store sales growth despite the political unrest during the period, and opened two stores.
Operations in Vietnam again enjoyed strong sales growth, confirming the country’s substantial growth potential.

Indian Ocean
Same-store sales in the Indian Ocean increased by 3.9%, lifted by successful sales campaigns and the World Cup’s favourable impact on non-food sales. Organic sales were up 4.7%.

* Data published by the companies
FIRST-HALF RESULTS

Sales rose by a strong 7.1% in the first half of 2010.
The currency effect added 4.5%, while changes in the scope of consolidation had a negative 1.1% impact. Based on constant scope of consolidation and exchange rates, organic growth came to 3.7%, or 2.8% excluding petrol. This represents a noticeable improvement from 2009 (down 0.1% excluding petrol), both
in France (down 0.3% excluding petrol vs 2.7% in 2009) and in International markets (up 9.4% excluding petrol vs 5.0% in 2009).

Trading profit rose 12.0%, or 5.7% before the reclassification of the CVAE under income tax, lifted by vigorous growth in the international operations.

Trading profit in France came to €347 million after reclassification of the CVAE. Trading profit declined by 5.5% on an organic basis, due in particular to the sales revitalisation plans at Géant and Leader Price. Trading margin at Franprix-Leader Price was down 98 points on an organic basis. Monoprix’s trading margin tangibly improved (up 32 points on an organic basis). Casino France’s trading margin narrowed by 9 points due to a lower margin at Géant. Casino Supermarkets and the superettes enjoyed solid profitability, while Mercialys recorded double-digit trading profit growth.

Trading profit in the international operations rose 34.5% on a reported basis to €194 million and 18.6% on an organic basis. Trading margin increased by 30 points on an organic basis. In South America, trading margin improved by 25 points on an organic basis, reflecting solid margin in Brazil and noticeably improved margins in Colombia. In Asia, organic trading margin rose by 73 points thanks to a marked improvement at Big C in Thailand and significantly higher margins in Vietnam.

Other operating income and expense represented a net expense of €56 million, reflecting in particular restructuring provisions and expenses.

Finance costs declined to €154 million from €165 million in first-half 2009 due to a reduction in net debt.

Income tax expense came to €105 million, representing a tax rate of 33.1%. Excluding non-recurring items and before reclassification of the CVAE under income tax, the tax rate came to 28.9% versus 29.9% in the year-earlier period.

Profit attributable to equity holders of the parent amounted to €173 million.

Underlying profit attributable to equity holders of the parent(1) increased by 10.5% to €208 million.

Net debt stood at €5,368 million at 30 June 2010, down from €6,003 million a year earlier, and all debt ratios improved as well.

Two bond exchange offers carried out during the period, in an aggregate amount of around €1.3 billion, have helped to noticeably improve the Group’s debt profile and to increase the average bond debt maturity from 2.9 to 4.4 years.

(1) Underlying profit corresponds to profit from continuing operations adjusted for the impact of other operating income and expense, non-recurring financial items and non-recurring income tax expense/benefits (see appendices).

OUTLOOK AND CONCLUSION
The first-half results confirm the asset portfolio’s effective positioning. The international operations recorded strong growth and significantly increased their contribution to trading profit. In France, the Group saw a return to sales growth thanks to a favourable format mix and sales revitalisation plans.

In France, Casino intends to strengthen market share by improving the banners’ price competitiveness and speeding up the expansion of the convenience and discount formats.

Internationally, the quality of the Group’s assets in high-potential countries is expected to drive strong and profitable business growth in 2010 and beyond.

The Group reaffirms its objective of a net debt/EBITDA ratio of less than 2.2x at the end of 2010, notably by pursuing its €1 billion asset disposal programme.

2010 Investor Calendar

Wednesday, 13 October 2010 (after the close of trading): Third-quarter 2010 sales announcement

APPENDICES

Main changes in the scope of consolidation

• Ponto Frio has been consolidated by the Grupo Pao de Açucar (GPA) sub-group since 1 July 2009.
• Operations in Venezuela have no longer been consolidated since 1 January 2010.

Consolidated net sales for second-quarter and first-half 2010

Underlying profit attributable to equity holders of the parent

Underlying profit corresponds to profit from continuing operations adjusted for the impact of other operating income and expense (as defined in the “Significant Accounting Policies” section of the notes to the consolidated financial statements), non-recurring financial items and non-recurring income tax expense/benefits. Non-recurring financial items include fair value adjustments to certain financial instruments whose market value may be highly volatile. For example, fair value adjustments to financial instruments that do not qualify for hedge accounting and embedded derivatives indexed to the Casino share price are excluded from underlying profit. Non-recurring income tax expense/benefits correspond to tax effects related directly to the above adjustments and to direct non-recurring tax effects. In other words, the tax on underlying profit before tax is calculated at the standard average tax rate paid by the Group. Underlying profit is a measure of the Group’s recurring profitability.